HomeMy WebLinkAboutJune-30-2010FLO
City of Paducah
Paducah, Kentucky
Comprehensive Annual Financial Report
Year Ended June 30, 2010
Issued by the
Finance Department
CITY OF PADUCAH, KENTUCKY
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2010
TABLE OF CONTENTS
Exhibit No. Page No.
Introductory Section:
Letter of Transmittal 1- 8
Organizational Chart 9
Principal Officials 10
GFOA Certificate of Achievement 11
Financial Section:
Independent Auditor's Report
12-13
Required Supplementary Information:
Management's Discussion and Analysis
14-28
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets
1
29-30
Statement of Activities
2
31-32
Fund Financial, Statements:
Governmental Funds:
Balance Sheet
3
33-34
Reconciliation of the Governmental Funds Balance
Sheet to Statement of Net Assets
4
35-36
Statement of Revenues, Expenditures and Changes
in Fund Balances
5
37-38
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
6
39-40
Budgetary Comparison Statement (Budgetary Basis) -
General Fund
7
41-44
Budgetary Comparison Statement - Note to RSI - General Fund
8
45
Budgetary Comparison Statement (Budgetary Basis) -
Special Revenue Investment Fund
9
46
Budgetary Comparison Statement - Note to RSI - Special
Revenue Investment Fund
10
47
Budgetary Comparison Statement (Budgetary Basis) -
Special Revenue Bond Fund
11
48
Budgetary Comparison Statement - Note to RSI - Special
Revenue Bond Fund
12
49
Proprietary Funds:
Statement of Net Assets
13
50
Statement of Revenues, Expenses and Changes in
Fund Net Assets
14
51
Statement of Cash Flows
15
52
Fiduciary Funds:
Statement of Net Assets
16
53
Statement of Changes in Net Assets
17
54
Component Units Financial Statements:
Statement of Net Assets
18
55-56
Statement of Activities
19
57-58
Notes to Financial Statements
59-91
Required Supplementary Information:
Pension Trust Fund Schedules
A-1
92
Exhibit No.
Page No.
Supplementary Information:
Nonmajor Governmental Funds:
General Capital Improvements Detail Statement of
Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual
B-1
93
Debt Service Fund Detail Statement of Revenues,
Expenditures, and Changes in Fund Balance - Budget
and Actual
B-2
94
Combining Balance Sheet
B-3
95-96
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
B-4
97-98
Detail Statement of Revenues, Expenditures, and
Changes in Fund Balance — Budget and Actual:
Municipal Aid Program Fund
B-5
99
Emergency Communication Service Fund
B-6
100
Court Awards Fund
B-7
101
Small Grant Fund
B-8
102
CDBG Grant Fund
B-9
103
Home Grant Fund
B-10
104
HUD Revolving Grant Fund
B-11
105
PRA Fund
B-12
106
Nonmajor Proprietary Funds:
Nonmajor Enterprise Funds:
Combining Statement of Net Assets
C-1
107
Combining Statement of Revenues, Expenses and
Changes in Fund Net Assets
C-2
108
Combining Statement of Cash Flows
C-3
109
Internal Service Funds:
Combining Statement of Net Assets
D-1
110
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Assets
D-2
111
Combining Statement of Cash Flows
D-3
112
Fiduciary Funds:
Combining Statement of Net Assets — Pension
Trust Funds
E-1
113
Combining Statement of Changes in Net Assets —
Pension Trust Funds
E-2
114
Combining Statement of Net Assets —
Private -purpose Trust Funds
E-3
115
Combining Statement of Changes in Net Assets —
Private -purpose Trust Funds
E-4
116
Statement of Changes in Assets and
Liabilities — Agency Funds
E-5
117
Table No.
Page No.
Statistical Section:
Net Assets by Component
1
118
Changes in Net Assets
2
119-121
Fund Balances, Governmental Funds
3
122
Changes in Fund Balances, Governmental Funds
4
123
Assessed and Estimated Actual Value of
Taxable Property
5
124
Single Audit Section:
Schedule of Expenditures of Federal Awards
Table No.
Page No.
Statistical Section:
Awards
141
Property Tax Rates - Direct and Overlapping
and on Compliance and Other Matters Based on an
Governments
6
125
Principal Taxpayers
7
126
Secured Tax Levies and Collections
8
127
Employee License Tax Collections
9
128
Principal Employee License Taxpayers
10
129
Ratio of Outstanding Debt by Type
11
130
Ratio of Net General Bonded Debt Outstanding
12
131
Direct and Overlapping Governmental
Activities Debt
13
132
Legal Debt Margin Information
14
133
Demographic and Economic Statistics
15
134
Principal Employers
16
135
City Full -Time Employees by Function
17
136
Operating Indicators by Function
18
137
Capital Asset Statistics by Function
19
138
Single Audit Section:
Schedule of Expenditures of Federal Awards
139-140
Notes to the Schedule of Expenditures of Federal
Awards
141
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance
with Government Auditing Standards
142-143
Report on Compliance with Requirements Applicable
to each Major Program and On Internal Control Over
Compliance in Accordance with OMB Circular A-133
144-145
Schedule of Findings and Questioned Costs
146
CITY OF PADUCAH, KENTUCKY
INTRODUCTORY SECTION
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2010
Honorable Mayor and Commissioners
City of Paducah
Paducah, Kentucky
CITY OF PADUCAH
Finance Department
P.O. Box 2267
Paducah, KY 42002-2267
270-444-8512
December 16, 2010
We are pleased to submit Paducah's Comprehensive Annual Financial Report (CAFR) for the year ended
June 30, 2010. Responsibility for the accuracy of the presented data and the completeness and fairness of
the presentation, including all disclosures, rests with the City.
The major objective of this report is to describe the City's financial condition and the financial results of
its operation in a format designed to be useful to the general public, elected officials, investors and
creditors. We believe the data, as presented, is accurate in all material aspects; that it is reported in a
manner designed to present fairly the financial position and results of operations of the various funds. All
disclosures necessary to enable the reader to gain maximum understanding of the City's financial
activities have been included.
City management's narrative on the financial activities of the City for the fiscal year ended June 30, 2010,
is in the Management's Discussion and Analysis (MD&A) section of this report, immediately following
the Report of Independent Auditors. The letter of transmittal is written to complement the MD&A and
the financial statements, and should be read from that perspective and in conjunction with all other
sections of the CAFR.
THE CITY
Paducah was established in 1827 by explorer General William Clark. The City of Paducah is situated at
the confluence of the Ohio and Tennessee Rivers in the north central portion of McCracken County.
Paducah is the largest city both in the county and in the Jackson Purchase eight county region. The City
has established itself as the cultural, economic, medical and transportation center for not only the Jackson
Purchase region but for a large portion of Southern Illinois and portions of Western Tennessee and
Southeastern Missouri.
Industry
The Paducah area has moved from the traditional "manufacturing industry" to a "service industry"
economy. Multi -state computer services, significant banking corporations, wholesale and retail trade,
river -related services, the health care industry and related services are the major employment centers.
Traditional manufacturing employment is heavily concentrated in the categories of chemicals, petroleum,
coal and rubber, and enriched uranium.
Economic Development Activities
The Greater Paducah Economic Development Council (GPEDC) coordinates the City's efforts in
strengthening and building economic development activities. Representatives of financial institutions,
utilities, local government, education and the business community serve as the Board of Directors. In
existence since 1987, GPEDC assumes and carries out the responsibility of working with existing industry
and business, as well as identifying and recruiting new companies to the City of Paducah. Additionally,
GPEDC is responsible for development of long-term strategy for economic development activities and
coordinates local entities in the accomplishment of those strategies.
In the early 1990s, the City of Paducah, the State of Kentucky and several federal agencies, in conjunction
with business, developed a 650 -acre `Information Age' Park. This park is designed to appeal to firms
needing advanced telecommunications and computing capabilities. The Info Park's focal point was
centered on the Resource Center, which was designed to coordinate resources of government, business
and education.
In 1997, the City of Paducah jointly with the County of McCracken acquired the `Industrial Park West of
Paducah and McCracken County'. This park contains 218 acres with immediate access to two major
railroad lines, Paducah and Louisville and Paducah and Illinois (formerly Illinois Central). The park is
located within the southwest quadrant of the 1-24/Cairo Road interchange.
In 2007, GPEDC began assembling property to establish Riverport West, a 1,000 -acre industrial park with
rail and river access in western McCracken County.
In FY2010, as the following table indicates, there were 433-448 jobs created and retained, and $20.63
million capital invested not to mention the added fiscal impact from the jobs created and capital invested.
Additionally, numerous other retail shops opened, creating several dozen more service industry jobs,
further strengthening Paducah's retail market.
Summary of Capital Investment and New/Retained Jobs
FY2010
Capital
Company Investment
In Millions
Jobs
New
Retained
H.T. Hackney $14.10
25-40
117
Paducah & Louisville Railway $4.20
(announced)
10
50
Credit Bureau Systems $1.50
35
140
H.B. Fuller $.83
11
45
Total $20.63
81-96
352
Source: Greater Paducah Economic Development Council
Churches And Schools
A relatively strong religious base is evident in the community, as demonstrated by the many churches in
Paducah. Numerous churches, representing many of the major denominations, are located within the
City. Several area churches offer televised activities as a convenience to those who do not attend church.
Elementary and secondary education in Paducah is provided by the Paducah Independent School System,
the McCracken County School System, Community Christian Academy, and by the St. Mary's Parochial
School System. Higher education is available locally from West Kentucky Community and Technical
College (WKCTC), formerly known as Paducah Community College, a two-year institution affiliated
IPA
with the University of Kentucky's community college system. WKCTC also serves as a site for the
University of Kentucky extended campus graduate programs, in addition to a four-year engineering
college in conjunction with the University of Kentucky. In 2008, WKCTC opened a Paducah School of
Art, which held classes this fall in its temporary location, while the permanent facility is developed.
Medical Facilities
Paducah serves as the regional medical center for much of the Jackson Purchase Area of Western
Kentucky, a large portion of Southern Illinois, and Northwestern Tennessee. Paducah's medical industry
has almost every major medical specialty represented in the physician population. The medical industry,
represented by Lourdes Hospital and Western Baptist Hospital, provides over 640 beds for medical needs.
The two largest hospitals, together, employ approximately 3,400 persons.
Recreation And Culture
Citizens have available a wide range of recreational and cultural activities which cater to diverse tastes.
Area residents may choose from fishing on nearby Kentucky and Barkley Lakes to enjoying the
performing arts. City parks provide areas for baseball, softball, golf, football, tennis, disc golf, skate
boarding, soccer, hiking and picnicking. The Parks Services Department offers a substantial number of
activities for people of all ages.
The `Dogwood Festival', held in April, highlights the coming of spring in Paducah. Residents are
encouraged to spotlight their trees to illuminate a driving tour to celebrate an abundance of dogwood
trees.
The Lower Town Art and Music Festival is uniquely showcased within the borders of Paducah's 140 -year-
old historic neighborhood. The LowetTown Art and Music Festival is an outdoor juried show in its 8th
year. The weekend includes jazz, salsa, zydeco and blues music, as well as food from area restaurants.
Started in 2004, the `Rivers Edge International Film Festival' is a four-day event built around the showing
of independent film from around the world. The festival is held in multiple venues including Maiden
Alley Cinema, Market House Theatre, and Yeiser Art Center. In addition to appealing to the film lover,
the festival also provides filmmakers opportunities for exhibition, education, and networking.
Paducah is the site of the Museum of the American Quilter's Society. In May 2008, a congressional
designation was passed naming the museum as the National Quilt Museum of the United States. The
museum, dedicated in 1991, is the centerpiece for the quilters' annual convention held in April. The
convention attracts an estimated 30,000 visitors to Paducah annually.
`Live on Broadway', which began as the `Downtown After Dinner Program' in May 1997, started out as
an experiment to draw people to Paducah's downtown district. From May to September, businesses
remain open late on Saturday night, while street corner musicians of all types entertain.
The `Paducah Summer Festival', started in 1967, is an annual celebration held during the last week in
July. Some of the Festival's activities include skydiving, hot air balloon races, a variety of music
concerts, and usually concludes with a spectacular riverfront fireworks display.
One of Paducah's oldest celebrations is the `8t' of August Emancipation Celebration', which features
African American family reunions, or a homecoming. It is a time for African Americans to pay tribute to
their heritage and roots, and a time of reconciliation.
The `Barbecue on the River' event was started in 1995, as a way for local charities to raise funds. It
attracts in excess of 70,000 participants to Paducah's riverfront during the last weekend in September.
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Over time, this annual event has grown to incorporate other events, including `Marine Industry Day' and
`Old Market Days'.
Paducah Power sponsors the annual `Christmas in the Park' lighting display at Noble Park. The public is
invited to a special lighting ceremony the Friday after Thanksgiving. This is the twelfth year for the
event. Although the event is free, volunteers collect more than $30,000 in cash and thousands of pounds
of canned food annually.
Paducah has an active symphony and several theater groups. The Paducah Symphony Orchestra stages
concerts during the winter season, with the Market House Theater presenting several productions during
the same time period. In addition, West Kentucky Community and Technical College's `Arts in Focus'
series sponsors a variety of professional productions.
The most recent addition to the City's cultural lineup is the `Luther F. Carson Four Rivers Center for the
Performing Arts'. The Center opened in February 2004, as a regional, multiple -purpose facility, with a
1,800 -seat main hall designed to accommodate a wide variety of cultural and educational programs.
The McCracken County Public Library offers a large selection of literature, special collections and
programs. The West Kentucky Community and Technical College Library supplements this community
resource. The combined inventories of the two libraries yield nearly 121,000 titles, not counting
numerous periodicals and newspapers.
THE GOVERNMENT
Paducah operates under a Council -City Manager form of government. The Paducah Board of
Commissioners is made up of a Mayor and four Commissioners elected at large by the citizens on a non-
partisan basis. The Mayor is elected for a four-year term and Commissioners for a two-year term. The
Mayor and Commissioners have equal voting powers.
The Board of Commissioners sets the policies that govern the City. It appoints advisory citizens groups
that help in the decision-making process. The City Manager is appointed by the Board and assists it in
formulating objectives, policies and programs. The City Manager is responsible for the day-to-day
operation of the City's 318 full-time employees as of June 30, 2010. Department managers are
responsible for their respective departments and report directly to the City Manager.
REPORTING ENTITY AND ITS SERVICES
For financial statement purposes, as required by generally accepted accounting principles, the City's
Comprehensive Annual Financial Report includes all City of Paducah financial statements (primary
government) and its component units. The component units discussed below are included in the City's
reporting entity because of the significance of their operational or financial relationships with the City of
Paducah.
Blended units are presented as such because the units' governing bodies are substantially the same as the
governing body of the City, or provide services almost entirely to the City of Paducah. The City has only
one blended unit: the Police and Firefighters' Pension Fund, which was established for the benefit of
police and firemen of the City.
The following component units have been presented as discrete units to emphasize that they are legally
separate from the City. Paducah Water Works and Transit Authority of the City of Paducah are all
included in the City's financial statements because of their financial relationship with the City.
N
The City provides a full range of municipal services, including police and fire protection; maintenance of
streets and infrastructure; sanitation services; storm sewer services; cultural events and recreation
activities.
Accounting System
The City's accounting system is organized on the basis of separate funds, each of which is considered to
be a separate accounting entity. The financial activities of each fund generate a separate set of self -
balancing accounts, which comprise its assets, liabilities, fund equity, revenues, and
expenditures/expenses. Municipal resources are allocated to and accounted for in individual funds based
upon the purposes for which they are to be spent and the means by which spending activities are
controlled.
The City's accounting records for the governmental funds and agency funds are maintained on a modified
accrual basis, with revenues being recorded when "measurable and available" and expenditures being
recorded when the services or goods are received and the liabilities are incurred. Accounting records for
the City's proprietary funds and trust funds are maintained on the accrual basis, with revenues recognized
when earned and expenses recorded when the liability is incurred or economic asset used.
Internal Control
In developing and evaluating the City's accounting system, consideration is given to the adequacy of
internal controls. Internal controls were designed for Paducah's accounting system to reasonably
safeguard its assets against loss from unauthorized use or disposition, check the accuracy of accounting
data, promote operational efficiency and encourage adherence to prescribed managerial policies.
Budgetary Control
Paducah's budget process provides for input from department managers, top management, elected
officials and the public to determine what programs and services will be provided for during the
upcoming year. Budgetary control is maintained at the departmental level by comparing budgeted
expenditures with actual expenditures on a periodic and year-to-date basis. An expenditure, which would
result in an overrun of department appropriation, cannot be made until additional funds are appropriated
and a budget amendment is approved. Purchase orders which result in an overrun of department
appropriations cannot be honored until additional appropriations are made available. Open encumbrances
at fiscal year-end, if any, are reported as reservations of fund balance. Unencumbered funds at year-end
roll into the fund balance.
Financial Policies
The City's financial policies are shaped by state law and established by management and the City
Commission. Financial policies include budgeting and financial planning, capital planning, revenue,
investment, debt management, procurement, and accounting and auditing.
During FY2010, some of the City's financial policies did have a significant impact on the financial
statements:
Pension Obligation Costs. In FY2006, the City issued general obligation bonds of $6,100,000 to finance
the police and firefighters' pension fund actuary liability. Since the issuance of these bonds, the City has
made it policy to contribute the normal cost annually as well as make the necessary contribution to
eliminate any unfunded liability that would arise from the fund being in a deficit position as of the
actuarial date. For FY2010 this contribution was $460,000. This amount is almost double the
contribution amount of $230,530 in FY2009.
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Fund Balance Reserve. The City's operating budget policy states that the general fund's minimum
undesignated cash balance shall be 8% of the general fund's budgeted expenditures. Any year-end
operating surpluses in excess of the required reserve may be kept as additional reserve or made available
for capital projects and/or "one-time only" general fund expenditures as determined by the Board of
Commissioners. In the fall of 2009, the Commission approved $1.265 million in additional
appropriations. The most significant of these included a $460,000 transfer to the pension fund to make
the required contribution towards the police and fire pension unfunded liability. In addition $450,000 was
set aside for a possible negotiated settlement and related attorney costs in the International Association of
Fire Fighters (IAFF) overtime lawsuit.
As part of the City's annual budget process, financial policies are reviewed and amended as necessary.
On May 28, 2010, the City Commission held its annual Budget Advance. At this meeting the
Commission conducted a debt review. They examined a summary of all of the City's debt issues, which
included the original issuance date/amount, purpose, and payment schedule for each. Although no official
action was taken, and the City is well within its legal debt limit, the Commission publicly stated that it has
no intention of any future borrowings. In FY2010, there were no official changes in policy that would
have a significant impact on the financial statements of the City.
LONG-TERM FINANCIAL PLANNING
On October 1, 2005, the City's payroll tax was increased 1/z cent. As a result of the payroll tax increase,
the City Commission created the Investment Fund. The Investment Fund is funded with the '/z cent
increase and is dedicated to the following purposes: economic development, community redevelopment,
infrastructure capital investment, and property tax relief. During the FY 2011 budget process, the
Commission reviewed numerous decision packages proposed for the Investment Fund Budget;
expenditures totaling $4.78 million were appropriated.
The City has numerous infrastructure/capital items that will affect the long-term financial planning
process. The following projects are examples of future considerations facing the City:
Floodwall Restoration. The 12.5 -mile long floodwall system protecting a large portion of the Paducah -
McCracken area is approaching 60 years of age. It is still in good condition long beyond its design life;
however, it is in need of necessary repairs. The estimated cost of this restoration project is approximately
$6 million. It is anticipated that grant funds will cover 65% of the project. In FY2009, the City
proceeded with making the most seriously needed repairs by borrowing around $2 million. This phase of
repairs neared completion in FY2010.
Riverfront Redevelopment Plan. The City's Riverfront Redevelopment Plan includes proposed
improvements that will provide public amenities, recreational facilities & public spaces that will tie the
City's downtown to the Ohio River. The plan includes a public marina, boat ramp, recreational trails and
shoreline enhancements, and a steamboat landing, just to name a few. Completion of Phase I & Phase II
of the entire riverfront redevelopment plan will cost an estimated $46.2 million. In FY2007 the City was
allocated $5.3 million in federal funds for construction of Phase 1 and the Ohio River Boat Launch
Project. Environmental assessment and remediation procedures required by the permitting process have
temporarily stalled the construction of this phase of the project. Once all permits are secured,
construction will be able to begin. Operating costs will be a long-term planning consideration.
Sports Park. In FY2010 the City entered into an agreement for a land purchase that will be used to
develop a sports park. In the future a plan will be developed which will likely include soccer fields,
softball/baseball fields, trails, shelters, and ancillary buildings. Depending on possible partnerships and
construction phasing, development costs may range between $2 million and $6 million dollars. Operating
costs of the facility will be a long-term planning consideration and is estimated at build -out to be
$150,000 to $200,000 annually.
rot
Hotel Development. In FY2010 the City spent approximately $2.4 million to purchase a 435 room
derelict hotel and prepare it for demolition. This hotel is adjacent to the City's Julian Carroll Convention
Center and Expo Center, which provides 110,000. square feet of convention and meeting space, making it
the fourth largest convention center in the State of Kentucky. The City has invested $13,8 million into the
convention facility, with $7.5 million for initial construction of the Expo Center in 2002, and $6.3 million
in renovations to the Convention Center, the most recent one being in 2009. The City is currently
preparing a request for proposal for a new hotel facility to be constructed on the site. Demolition is
scheduled to being in the fall of 2010.
ECONOMIC CONDITION
The City continues to be aggressive in promoting economic development, since new developmental job
growth is necessary to ensure the continued stability of the City's tax base. Economic indicators and
trends reflect that the area's economy has remained fairly steady considering the nation's recent economic
struggles. It is expected that the economy will continue to hold over the near-term. Area employment
remained flat in comparison to the prior year, with 29,148 persons employed (McCracken County) as of
June 30, 2010.
The June 2010 unemployment rate was 8.5% (McCracken County), which is an improvement from 9.4%
in the prior year and is favorable compared to the June 2010 federal unemployment rate of 9.6%. The
number of active electric and water meters was nearly the same as the prior year. The number of building
and electric permits obtained was 1,263 for fiscal year 2010 valued at $48.9 million, which is up $11
million from fiscal year 2009.
INDEPENDENT AUDIT
Kentucky Revised Statute 91 A-040 requires an annual audit of each fund of the City by an auditor of
public accounts or a certified public accountant. The independent certified public accounting firm of
Williams, Williams & Lentz, LLP, has conducted this audit and their opinion has been included in this
report. The City is also subject to the Single Audit Act Amendments of 1996 reporting requirements.
The Single Audit Report is included within this report.
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Paducah, Kentucky for its
comprehensive annual financial report for the fiscal year ended June 30, 2009. This was the nineteenth
consecutive year that the City achieved this prestigious award.
In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a government
must publish an easily readable and efficiently organized comprehensive annual financial report. This
report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only.
We believe our current comprehensive annual financial report continues to meet the Certificate of
Achievement Program's requirements, and we are submitting it to GFOA to determine its eligibility for
another certificate.
ACKNOWLEDGMENTS
The preparation of this report on a timely basis could not be accomplished without the efficient and
dedicated services of the entire staff of the Finance Department. We wish to express our appreciation to
all members of the Finance Department who assisted and contributed to its preparation, and special thanks
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to Williams, Williams & Lentz, LLP. We also thank the Mayor, City Manager, and City Commission for
their interest and support in planning and conducting the financial operations of the City in a responsible
and progressive manner.
Re fully submitted,
onathan W. Perkins, CPA
Finance Director/Treasurer
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I
City Clerk
CITY OF PADUCAH, KENTUCKY
ORGANIZATIONAL CHART
CITIZENS OF PADUCAH I
Advisory Board
and Mayor and Commissioners
Committees H
City Manager
City Attorney
Police Parks
Department Fire Department Department
Engineering/ Planning Finance Department/
Public Works Department Human Resources Inspection
Department
Paducah
Renaissance
Alliance
Information
Systems
Risk
Management
Mayor
Mayor Pro tem
Commissioner
Commissioner
Commissioner
Finance/Human Resources
Police Chief
Fire Chief
City Engineer/Public Works
Planning
Parks Services
Inspections
Information Services
City Clerk
Risk Manager
Public Information
Paducah Renaissance Alliance
CITY OF PADUCAH, KENTUCKY
PRINCIPAL OFFICIALS
BOARD OF COMMISSIONERS
INTERIM CITY MANAGER
Jonathan Perkins, C.P.A.
-lo-
William F. Paxton
Gayle Kaler
Gerald Watkins
Carol Gault
Richard Abraham
Jonathan Perkins, C.P.A.
James Berry
Steve Kyle
Richard Murphy
Stephen Ervin
Mark Thompson
Joel Scarbrough
Greg Mueller
Tammy Brock
Cindy Medford
Pam Spencer
Steve Doolittle
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Paducah
Kentucky
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2009
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
y '
President
fp W A4 go AP* 04 0
Executive Director
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CITY OF PADUCAH, KENTUCKY
FINANCIAL SECTION
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2010
WILLIAMS, WILLIAMS & LENTZ, LLP
CERTIFIED PUBLIC ACCOUNTANTS
601 JEFFERSON
PADUCAH, KENTUCKY 42001
J. RICHARD WALKER
ROBERT R. ROBERTSON
MAILING ADDRESS
POST OFFICE BOX 2500
C. SUZETTE CRONCH
PADUCAH, KY 42002-2500
MICHAEL F. KARNES
MARK A. THOMAS
TELEPHONE
ROGER G. HARRIS
270443-3643
J. DAVID BAILEY, III Independent Auditor's Report
FAX
G. LEON WILLIAMS, 1926-2004
270-444-0652
H. WILLIAM LENTZ, 1925-2007
JERRY G. SEVERNS
WEBSITE
wwlcpa.00m
Honorable William F. Paxton, Mayor
Members of the Board of Commissioners
City of Paducah
Paducah, Kentucky
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Paducah, Kentucky (the City), as of and for the year ended June 30, 2010,
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 of Paducah, Kentucky's management. Our responsibility
is to express opinions on these financial statements based on our audit. We did not audit the financial
statements of the Transit Authority of the City of Paducah, a component unit, which represents nineteen
percent of the assets and revenues of the Component Units column. Those financial statements were audited
by another auditor whose reports have been furnished to us, and our opinion on the basic financial statements,
insofar as it relates to the amounts included for the Transit Authority of the City of Paducah, a discretely
presented component unit, is based on the report of another auditor.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the basic 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. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall basic financial statement presentation. We believe that our
audit provides a reasonable basis for our opinions.
In our opinion, based on our audit and the report of another auditor, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the
business -type activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the City of Paducah, Kentucky as of June 30, 2010, and the
respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary
comparisons for the General Fund and Special Revenue Investment Fund, for the year then ended in
conformity with accounting principles generally accepted in the United States of America. In addition, in our
opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial positions of each nonmajor governmental, nonmajor enterprise, internal service, and fiduciary fund,
which collectively comprise the City's combining and individual fund statements and schedules as listed in the
table of contents as of June 30, 2010, and the respective changes in financial position and cash flows, where
applicable, thereof and the respective budgetary comparisons for the General Capital Improvements, Debt
Service Fund and the non -major governmental funds, for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
-12-
In accordance with Government Auditing Standards, we have also issued our report dated December 16, 2010,
on our consideration of the City's internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards and important for assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, Pension Trust Fund Schedules on pages 14 through 28 and 92, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Government Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which, consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Paducah, Kentucky's basic financial statements. The introductory section and statistical
tables are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The accompanying schedule of expenditures of federal awards is presented for purposes of
additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of State,
Local Governments, and Non -Profit Organizations, and is also not a required part of the basic financial
statements of the City of Paducah, Kentucky. The schedule of expenditures of federal awards has been
subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is
fairly stated in all material respects in relation to the basic financial statements taken as a whole. The
introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we express no opinion on them.
December 16, 2010
-13-
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 309 2010
CITY OF PADUCAH, KENTUCKY
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2010
The City of Paducah ("City") offers Management's Discussion and Analysis to provide a narrative overview
and analysis of City financial activities for fiscal year ended June 30, 2010. To fully understand the entire
scope of the City's financial activities, this information should be read in conjunction with the letter of
transmittal (pages 1-8) and the basic financial statements (pages 29-91) provided in this document.
The City first implemented Government Accounting Standards Board Statement 34, Basic Financial
Statements—and Management's Discussion and Analysis for State and Local Governments, for fiscal year
2003.
I. Financial Highlights
• Assets exceeded liabilities by $49.6 million at the close of the 2009-2010 fiscal year. Of this
amount, $10.0 million (unrestricted net assets) may be used to meet City government's ongoing
obligations to citizens and creditors.
• Total net assets increased $221,555.
• At fiscal year end, City governmental funds reported a combined ending fund balance of $19.6
million. Approximately 60% of this total amount, $11.6 million, is unreserved and available for
spending at the City's discretion. Of the $11.6 million, $1.4 is in various special funds, which are
earmarked for specific purposes.
• At the end of the current fiscal year, unreserved General Fund fund balance was $10.2 million, of
which cash and investments make up approximately $6.1 million. When compared to total
appropriations, the General Fund cash and investments balance is 20%.
H. Overview of Financial Statements
This discussion and analysis serves as an introduction to the City's basic financial statements, which
consist of four components: 1) government -wide financial statements, 2) fund financial statements, 3)
component unit financial statements, and 4) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements.
A. Government -Wide Financial Statements
Government -wide financial statements are designed to provide readers with a broad overview of
City finances in a manner similar to private -sector business.
The Statement of Net Assets presents information on all City assets and liabilities, with the
difference between assets and liabilities reported as net assets. Monitoring increases and/or
decreases in net assets over time may serve as a useful indicator of whether the financial position of
the City is improving, stagnating, or deteriorating.
The Statement of Activities presents information showing how the City's net assets changed during
the fiscal year. All net asset changes are reported as soon as the underlying event giving rise to the
change occurs regardless of the timing of related cash flows. Revenues and expenses are reported in
the Statement of Activities for some items that will only result in cash flows in the future (e.g.,
uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish City functions that are primarily
supported by taxes and intergovernmental revenues (governmental activities) from other City
-14-
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business -type activities). City governmental activities include general government, public
safety, public service, park and recreation, planning and development, and interest on long-term
debt. Business -type activities of the City include Solid Waste, Section Eight Housing, Civic Center
and Telecommunication Information System Authority (TISA).
Government -wide financial statements include not only the City (the primary government), but also
a legally separate Paducah Water Works and Transit Authority of the City of Paducah (component
units) for which the City is financially accountable. Financial information for the component units
is reported separately from the financial information presented for the primary government itself.
The government -wide financial statements can be found on pages 29-32 of this report.
B. Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over segregated resources
for specific activities or objectives. The City of Paducah, like other state and local governments,
uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements.
City funds can be divided into three categories:
1) Governmental Funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements. Unlike
government -wide financial statements, however, governmental fund financial statements focus on
current sources and uses of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. This information may be useful in evaluating a city's near-
term financing requirements.
The City maintains thirteen (13) individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General, General Capital Improvements,
Investment, Bond, and Debt Service Funds, all of which are considered to be major funds. Data
from the other eight (8) funds are combined into a single, aggregated presentation. Individual fund
data for each of these non -major governmental funds is provided in the form of combining and
individual fund statements elsewhere in this report on pages 93-106.
Readers may better understand the long-term impact of the City's near-term financing decisions by
comparing the narrow -focus governmental funds financial statements with governmental activities
in the government -wide financial statements. Exhibit 4 (pages 35-36) and Exhibit 6 (pages 39-40)
provide a reconciliation to ease comparison between the fund financial statements and the
government -wide statements.
The basic governmental fund financial statements can be found on pages 33-40 of this report.
2) Proprietga Funds. The City maintains two types of proprietary funds:
a. Enterprise Funds. Enterprise funds are used to report the same functions presented as
business -type activities in the government -wide financial statements and are used to account
for operations:
• That are financed and operated in a manner similar to private business enterprises where
the intent of the governing body is that the costs of providing goods and services to the
general public on a continuing basis be financed or recovered primarily through user
charges; or
-15-
Where the governing body has decided that periodic determination of revenues earned,
expenses incurred, and/or net income is appropriate for capital maintenance, public
policy, management control, accountability or other purposes.
The City uses four enterprise funds to account for Solid Waste, Section Eight Housing,
Civic Center and TISA, as well as certain component units that provide water and public
transit. TISA and Civic Center receive subsidy from the General Fund.
The City's component unit enterprises include the Paducah Water Works and Paducah
Transit Authority, which provide water and public transportation. These component units,
each of which has their own board of directors, are also enterprise funds and are shown on
pages 55-58.
b. Internal Service Funds are used to accumulate and allocate costs internally among the
City's various functions. The City uses internal service funds to account for fleet services,
fleet replacement, risk management (insurance) and employee health programs. Internal
service funds have been allocated between governmental activities and business -type
activities in the government -wide financial statements based on revenue earned.
Proprietary funds provide the same kind of information as government -wide financial
statements, but in greater detail. Individual data for the nonmajor proprietary funds is presented
in the form of combining statements on pages 107-109 of this report. Individual data for the
internal service funds is likewise presented in the form of combining statements on pages 110-
112 of this report.
3) Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government and are not reflected in government -wide financial statements
because those resources are not available to support City programs. Individual data for the
City's four (4) fiduciary funds (Appointive Employees' Pension, Police and Firefighters'
Retirement, Other Trust Funds, and Maintenance and Rehabilitation Trust) are presented in the
form of combining statements on pages 113-117 of this report.
C. Notes to the Financial Statements
The notes provide additional information that is essential to fully understanding data provided in the
government -wide and fund financial statements. Notes to the financial statements can be found on
pages 59-91 of this report.
D. Other Information
In addition to basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning City funding of its obligation to provide pension
benefits to its employees and budgetary comparison schedules for the general and major special
revenue funds.
The combining statements referred to earlier in connection with nonmajor governmental funds,
nonmajor proprietary funds, internal service funds and fiduciary funds are presented immediately
following the required supplementary information on pensions and budgetary comparisons.
Combining fund statements and schedules can be found on pages 95-117 of this report.
-16-
III. Government -Wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of the City's financial position.
City assets exceeded liabilities by $49.6 million as of June 30, 2010.
For FY2010, the largest portion of the City's net assets (66%) reflects its investment in capital assets
(i.e., land, buildings, machinery, equipment and infrastructure) less outstanding related debt used to
acquire those assets. The City uses these capital assets to provide service to citizens and, as a result,
these assets are not available for future spending. The City's capital assets investment is reported
net of related debt, but the resources to pay this debt must be provided from other sources since the
capital assets cannot be used to liquidate the liabilities.
An additional portion of City net assets (14%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets (20%) may
be used to meet the City's ongoing obligations to citizens and creditors.
As of June 30, 2010, the City reports positive balances of net assets, both for the government as a
whole, as well as for its separate governmental and business -type activities.
Current assets
Capital assets
Other noncurrent assets
Total assets
Current liabilities
Noncurrent liabilities
Total liabilities
Net assets:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
TOTAL NET ASSETS
City of Paducah, Kentucky
Net Assets
June 30
Governmental Activities
Business -Type
Activities
Total Primary
Government
2010
2009
2010
2009
2010
2009
(Restated)
(Restated)
$ 38,121,799
$ 39,955,659
$ 4,886,893
$ 3,769,371
$ 43,008,692
$43,725,030
39,531,590
34,407,092
1,652,961
1,721,419
41,184,551
36,128,511
7,822,828
8,093,792
7,822,828
8,093,792
85,476,217
82,456,543
6,539,854
5,490,790
92,016,071
87,947,333
9,880,596
11,410,186
372,106
287,449
10,252,702
11,697,635
30,116,284
24,824,989
2,077,282
2,076,461
32,193,566
26,901,450
39,996,880
36,235,175
2,449,388
2,363,910
42,446,268
38,599,085
31,136,514
31,215,252
1,652,961
1,721,419
32,789,475
32,936,671
6,177,722
6,385,039
620,800
369,367
6,798,522
6,754,406
8,165,101
8,621,077
1,816,705
1,036,094
9,981,806
9,657,171
-17-
The exhibit below charts the City's total net assets from the implementation of GASB 34 through
the present.
Annual increases to total net assets began in FY2005 primarily due to the increase of the City's
payroll tax and the creation of the Investment Fund. The additional tax generates approximately $4
million in revenue each year, which is used mostly for capital investment. Increases have leveled
off for the past few year's due to mid -year appropriations made by the Commission, reducing the
City's unreserved cash balance at June 30 to the minimum requirement of 8% each time. During
FY2010, most categories of revenue were either flat or decreased due to the economic downturn.
A. Analysis of the City's Operations
The following table provides a summary of the City's operations for the years ended June 30, 2010
and 2009. Governmental activities decreased the City's net assets by $742,031. Business -type
activities increased the City's net assets by $963,586.
-18-
Revenues:
Program revenues:
Charges for services
Operating grants/ contributions
Capital grants/ contributions
General Revenues:
Property taxes
Franchise taxes
Telecommunications tax
Insurance premium tax
Vehicle tax
Bank tax
Gross receipts license tax
Employee license tax
Other taxes
Intergovernmental revenue
Unrestricted investment earnings
Gain on sale of capital assets
Total revenues
Expenses:
General government
Public safety
Public service
Park and recreation
Planning and development
Interest on long-term debt
Solid Waste
Section Eight Housing
Civic Center
TISA
Total expenses
Increase (decrease) in net
assets before transfers
Transfers
Change in net assets
Net assets, July 1, restated
NET ASSETS, JUNE 30
City of Paducah, Kentucky
Changes in Net
Assets
June 30
Governmental Activities
Business -Type
Activities
Total Primary
Government
2010
2009
2010
2009
2010
2009
(Restated)
(Restated)
$ 2,828,209
$ 3,308,948
$4,617,153
$4,734,827
$ 7,445,362
$ 8,043,775
1,813,019
2,119,845
2,340,267
1,965,936
4,153,286
4,085,781
1,390,848
4,727,087
27,239
129,032
1,418,087
4,856,119
4,207,736
3,986,760
-
-
4,207,736
3,986,760
149,642
134,552
-
-
149,642
134,552
794,027
815,859
-
-
794,027
815,859
3,797,347
4,055,228
-
-
3,797,347
4,055,228
585,495
576,876
-
-
585,495
576,876
204,522
186,531
-
-
204,522
186,531
4,229,102
4,320,850
-
-
4,229,102
4,320,850
16,384,509
16,584,636
-
-
16,384,509
16,584,636
610,984
533,506
-
-
610,984
533,506
499,484
529,083
-
-
499,484
529,083
172,213
336,960
33,724
52,961
205,937
389,921
64,620
68.530
1.112
98.369
65,732
166,899
37,731,757
42.285,251
7,019,495
6,981,125
44,751,252
49,266,376
9,763,178
12,148,118
-
-
9,763,178
12,148,118
16,239,042
15,734,557
-
-
16,239,042
15,734,557
7,669,729
12,849,566
-
-
7,669,729
12,849,566
2,653,474
1,492,306
-
-
2,653,474
1,492,306
970,022
708,827
-
-
970,022
708,827
1,099,450
1,029,888
-
-
1,099,450
1,029,888
-
-
3,797,097
4,037,845
3,797,097
4,037,845
-
-
2,061,370
2,154,360
2,061,370
2,154,360
-
-
69,537
75,692
69,537
75,692
206.798
162.849
206,798
162.849
38,394,895
43,963,262
6,134,802
6,430,746
44,529,697
50,394,008
(663,138)
(1,678,011)
884,693
550,379
221,555
(1,127,632)
(78,893)
(110,838)
78.893
110,838
(742,031)
(1,788,849)
963.586
661,217
221,555
(1,127,632)
46.221,368
48.010,217
3,126,880
2,465.663
49.348.248
$49.569,803
50,475.880
$45.479.337
$3.1.6.880
149.348.248
-19-
B. Governmental Activities
As with most municipalities, the City's governmental activities are heavily subsidized by taxes, with
little or no program revenue for each function. The chart below demonstrates the importance of tax
revenue to essential functions of the City.
The graph below depicts the breakdown of revenue by source for fiscal year 2010.
-20-
In fiscal year 2010, the City derived 82% of its revenue from taxes/licenses. Occupational licenses,
which include payroll withholding tax, business licenses, and insurance premium tax is the largest
source of income to the City, totaling $24.4 million. This category of revenue declined 2.2% from
fiscal year 2009. All taxes within this category experienced a decrease in collections. Insurance
premium tax had the largest decrease of $257,881 or 6.4%. Gross receipts license tax and employee
license tax decreased 2.1% and 1.2%, respectively. There does not appear to be any one significant
closing or layoff that led to these ' decreases. Economic downturn appears to have contributed
heavily to an overall decrease in general revenues from the prior year.
Although most areas of taxes/licenses declined from prior year, they comprised a larger portion of
the City's revenue. This is because of a significant decrease in capital grants/contributions from
prior year. In 2009 the City received $4.9 million in Federal disaster assistance as a result of the
Hurricane Ike windstorm and the 2009 Ice Storm. In 2010 capital grants/contributions was at a more
typical level of $1.4 million.
C. Business -Type Activities
The chart below shows the operating results for each of the City's business -type activities. These
activities should break-even; that is, the charges for services should be large enough to sustain
operations. For fiscal year 2010, business -type activities as a whole had an increase in net assets of
$963,586. This was primarily due to the performance of the Solid Waste Fund.
The Solid Waste Fund, a major fund of the organization, has experienced a positive change in net
assets in excess of $600,000 for the second year in a row. During 2008, efforts were made to
improve the performance of this function, including a rate increase as well as efficiency measures
through equipment and route reorganization. In 2009, another rate increase was implemented. In
addition, the entire Public Works department was reorganized at the end of FY2009, which led to
the sale of unnecessary equipment and reduced spending.
-21-
IV. Financial Analysis of the City's Funds
A. Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows
and balances of spendable resources. Such information is useful in determining the City's financing
requirements. Unreserved fund balance serves as a useful measure of the City's net resources
available for spending at the end of the fiscal year.
At the end of the fiscal year, the City governmental funds reported combined ending fund balances
of $19.6 million. Approximately 59% of this total amount, $11.6 million, is unreserved fund
balance, which is available for spending at the government's discretion but only up to the amount
represented by cash. Of the $11.6 million, $1.4 million is in the Debt Service Fund and various
special revenue funds, which are earmarked for specific purposes.
The amount of unreserved general fund dollars has remained virtually unchanged from the prior year
at $10.2 million. However, the allocation of fund balances among the categories (shown below) has
shifted. This is primarily due to unspent 2010 bond proceeds at June 30, 2010. Of the $6.5 million
in bond proceeds, nearly $3 million remained at year-end. These funds have been reserved for
several large capital projects including renovation of the Noble Park parking lot, greenway trail
development (matching funds), and the sports park property purchase, to name a few.
City fiscal policy (ordinance 2009-6-7575) requires that an amount not less than 8% of the General
Fund's budgeted expenditures remain undesignated in the fund balance, or $2.4 million, which
leaves $7.8 million as unreserved for fiscal year 2010. While $7.8 million represents unreserved
fund balance, it is worth noting here that at year-end there was $6.1 million available as cash, the
balance is tied up in other assets including accounts receivable and property taxes collectible.
-22-
As a measure of General Fund liquidity, readers may compare unreserved fund balance to total
General Fund expenditures. Unreserved General Fund fund balance represents approximately 34%
of expenditures and transfers out ($30 million). This has remained stable since the implementation
of GASB 34, staying between approximately 30% and 35% since fiscal year 2003.
The Investment Fund had a fund balance of $2.8 million, all of which is reserved for capital projects.
The Investment Fund's fund balance increased $227 thousand. The Investment Fund was authorized
by the City Commission in fiscal year 2005-2006 as a special revenue fund whose use is restricted to
property tax reduction, economic development, community redevelopment and capital and
infrastructure projects. The Investment Fund captures all manner of financial activities related to
revenue from the 1/z cent payroll tax increase, effective October 1, 2005. Payroll tax revenue
decreased slightly from fiscal 2009 to 2010. The increase in fund balance is due to economic
development dollars that were set aside but not utilized during the year.
B. Proprietary Funds
The City's proprietary funds provide the same information found in the government -wide financial
statements, but in more detail.
Net assets of the respective proprietary funds are:
Solid Waste $2,652,060
Section Eight Housing 643,539
Civic Center 184,548
TISA 376,949
Combined total net asset change for the four funds was an increase of $933 thousand, broken down
as follows: Solid Waste ($681 thousand increase), Section Eight Housing ($252 thousand increase),
Civic Center ($14 thousand decrease), and TISA ($14 thousand increase). The most significant
change, Solid Waste, was discussed under Business Type Activities (Section III -C). Section Eight
experienced an increase in fund balance in FY2010 after losses of over 20% each year in FY2008
and 2009. Annual HUD grant funding is based on expected rentals for the year. During fiscal year
2008 and 2009 rental costs exceeded what had been projected. For fiscal year 2010, the Section
Eight office implemented a plan to reduce program expenditures so that reserves would be
replenished.
9dcII
V. General Fund Budgetary Highlights
Differences between the original budget and the final actual amounts resulted in a $1.5 million
increase in appropriations and can be briefly summarized as follows:
Department
General administration
Finance
Planning
Human rights
Inspection
Information systems
Risk management
Police
Fire
Public works
Engineering services
Recreation
Other
Appropriations
Increase
Decrease
(In Thousands)
$ 360
$ -
195
-
10
-
-
4
-
21
-
33
-
11
56
-
-
4
-
1,353
-
45
1,249
-
1,118
-
In FY2010 there was a mid -year budget appropriation of $1.265 million. Of the $1.265 million,
$460,000 was transferred to the pension fund for the required contribution towards the police and
firefighters' pension unfunded liability. This is reflected in the increase in General Administration
appropriations. In addition $450,000 was set aside for the possible negotiated settlement and related
attorney costs for the International Association of Fire Fighters (IAFF) overtime lawsuit. The
remaining $355,000 was designated for various police and fire capital projects and restoration of the
City's commission contingency fund.
The Finance Department's budget increased by $195,000. There are certain non -departmental
expenses accounted for in the Finance Department, including the City's 800 mhz radio operations.
During FY2010, final payment was made on a radio controller upgrade. This payment was not
included in the original FY2010 budget.
Other significant budget changes include the remaining after-effects of the FY2009 Economic
Efficiency Plan. As a result of this plan, Engineering and Public Works were combined into a single
department. After that merger was complete, it was decided to transfer grounds maintenance
operations from Public Works to Recreation. Since this management decision was made just prior
to the end of FY2009 and subsequent to the development of the FY2010 budget, the original
FY2010 budget did not reflect these changes.
IMS
VI. Capital Asset and Debt Administration
A. Capital Assets
The City's investment in capital assets for governmental and business -type activities as of June 30,
2010, is $41.2 million (net of accumulated depreciation). This investment in capital assets includes
land, buildings and improvements, vehicles and equipment, park facilities, roads, highways, bridges,
and construction in progress.
Capital improvements are included in each department budget until improvements are completed.
At the end of the fiscal year, completed projects are capitalized in the Government -wide Statements.
During fiscal year 2010, projects and equipment expenditures totaled over $8.3 million. Some of the
largest capital -type projects, in terms of dollars in fiscal year 2010, are shown in the following table:
Hotel Purchase/Demolition Preparation
$2,419,981
Pavilion Purchase
1,628,920
Floodwall Rehabilitation
1,081,014
Fire Truck Purchase
701,789
Community Redevelopment
409,558
Sports Park Property Purchase
308,748
In the upcoming years, several street, economic development, riverfront development, quality of life
and drainage projects will continue and are estimated to cost several million dollars. Capital
improvement projects including infrastructure, recreational facility improvements, continued
neighborhood revitalization, and street and sidewalk rehabilitation are among the projects to be
addressed.
Land
Land improvements
Construction in progress
Buildings and improvements
Infrastructure
Equipment
Furnishings and fixtures
Vehicles
TOTALS
City of Paducah, Kentucky
Capital Assets
(Net of Accumulated Depreciation)
June 30
Governmental Activities
2010 2009
$ 7,181,028 $ 6,239,585
1,729,014 1,814,848
9,097,164 3,610,527
3,754,087 4,034,368
13,361,137 15,185,098
1,826,536 1,675,022
4,081 5,605
2,578,543 1,842,039
Business -Tyne Activities
2010 2009
$ 62,152 $ 65,908
218,220 227,378
427,177 408,977
945,412 1,019,156
Total Primary Government
2010
2009
$ 7,243,180
$ 6,305,493
1,729,014
1,814,848
9,097,164
3,610,527
3,972,307
4,261,746
13,361,137
15,185,098
2,253,713
2,083,999
4,081
5,605
3,523,955 2,861,195
Additional information on City capital assets can be found in Note 3 in the notes to financial
statements on pages 72-76.
-25-
B. Long -Term Debt
At year-end, the City had $31,469,707 in outstanding bonds and notes payable, compared to
$24,986,900 at June 30, 2009, with maturities extending through 2030.
Convention and Performing Arts Center — 2001
Kentucky League of Cities — 2003
Infiniti Media Building — 2004
Police/Firefighter Pension Fund Liability — 2006
Floodwall Rehabilitation — 2008
Convention Center Renovation — 2008
HOME grant — 2009
Public Improvement Projects — 2010
Sports Park property — 2010
TOTALS
During the year, the City had two new debt issues:
Governmental Activities
2010
2009
$ 7,030,000
$ 7,320,000
2,517,763
2,672,649
3,975,000
4,160,000
5,340,000
5,545,000
2,671,440
2,774,638
2,417,500
2,500,000
273,004
14,613
6,645,000
-
600,000
-
UX, �MVXIIY= 11
Public Improvement Projects. In March 2010, a $6.645 million general obligation was issued to
finance several public improvement projects including a major park parking lot renovation and
several resurfacing projects, sports park property acquisition, pavilion acquisition, greenway trail
development, and a portion of the hotel purchase described earlier in this document.
Sports Park Property Purchase. In December 2009, the City entered into an agreement in the
amount of $600,000 with L. Wayne & Linda Lindsey to finance the acquisition of real property to be
used for the development of a sports park with soccer complex in the community. This obligation
will be met with bond proceeds issued in March 2010.
Debt issues prior to July 1, 2009, are described below:
Floodwall Rehabilitation. In March 2009, a $2.8 million general obligation was issued to finance
significant repairs to the City's 60 -year-old floodwall. The first stage of a $6 million project, this
money was used to fund the relining of the pipes, which have deteriorated with age.
Convention Center Renovation. In March 2009, the City entered into an agreement in the amount
$5,000,000 with the Kentucky Association of Counties to finance renovations to the Julian Carroll
Convention Center. The note was issued by McCracken County; however, the City is obligated for
50% of the principal amount through an Interlocal Cooperative Agreement between the City and
McCracken County.
Convention and Performing Arts Center. In June 2001, a $9.29 million general obligation bond
was added to the City's debt obligation to finance construction of the Luther F. Carson Four Rivers
Center for the Performing Arts (approximately $3.0 million) and the expansion of the Julian Carroll
Convention Center (approximately $6.0 million). While the City issued these bonds, 50% of the
principal amount of the bonds is being issued on behalf of the County of McCracken, Kentucky.
McCracken County has issued the City a general obligation note in a principal amount equal to 50%
of the principal amount of the bonds.
Kentucky League of Cities. In fiscal year 2003, the City borrowed $3.5 million to fund a variety of
capital projects, including park improvements ($1.0 million), downtown infrastructure improvements
in conjunction with the FRC ($1.5 million), and City Hall, Police and other City -owned facility
improvements ($1.0 million).
-26-
Infiniti Media Building. In fiscal year 2004, the City sold $5.0 million in bonds to construct the
Infiniti Media Building in the Paducah Industrial Park West, an economic development project. By
interlocal agreement, McCracken County is obligated to an amount equal to 50% of the principal
amount of the bonds. After the third year of the life of the bond, the Infiniti Media Company is
obligated to make monthly lease payments to the City in an amount nearly equal to the debt service
obligation.
Police/Firefighter Pension Fund Liability. In fiscal year 2006, the City issued $6.1 million in
general obligation bonds to finance the police and firefighter's pension fund estimated pension
liability.
The City's legal debt limit under §158 of the Kentucky Constitution is 10% of total assessed value of
taxable property in Paducah; therefore, the debt limit is $207,696,169. The City's latest bond rating
by Standard & Poor's is AA-. The City has a low amount of general obligation debt, which explains
our large legal debt margin.
The City of Paducah, Kentucky, issues and incurs debt in order to fund capital improvement projects,
purchase major capital equipment and facilities, and respond to other special funding needs. In fiscal
year 2010, less than 2.4% of the General Fund budget was expended for debt service, and thus has
minimal impact on current and future operations.
Additional information on the City's long-term liability can be found in Note 3 in the notes to
financial statements on pages 76-79.
VII. Other Potentially Significant Matters.
A. Post -employment Benefits. Personal service costs make up over two-thirds of the City's annual
operating budget, and that number is continuously affected by rising retirement costs. In the past
five years, the City's combined hazardous and non -hazardous retirement contribution has increased
from approximately $2.5 million in fiscal year 2006 to $3.6 million in fiscal year 2010. The rates
for FY2011 have increased, causing budgeted figures for the upcoming year. to increase another
$263,000 compared to what was incurred in FY2010: Based on trends and projections provided by
the Retirement System, the long-term outlook on funding requirements is of utmost concern.
B. Police & Fire Pension Fund (PFPF) Unfunded Liability. In fiscal year 2006, the City issued $6.1
million in general obligation bonds to eliminate the unfunded pension liability. With the sharp
decline in value of the national stock market in 2009, the PFPF's equity investment dropped
accordingly. PFPF net assets dropped in 2009 by nearly $3.5 million, or 28.5% of the beginning net
assets (July 1, 2008). The City contributed the actuary's recommended amount of $460,000 toward
the unfunded pension liability in fiscal year 2010. The valuation as of July 1, 2010, dated October
22, 2010, indicates the amount for fiscal year 2011 will be $455,000.
C. IAFF Overtime Lawsuit. At this time, we are aware of a lawsuit filed against the City of Paducah
under Wage and Hour law that affects 76 former and current firefighters named as Plaintiffs, relating
to the way the City administered State Incentive Overtime Pay for the five years preceding filing of
the lawsuit. An additional element of the lawsuit addresses contract law and could have potential
effect reaching back 15 years from the date of filing. A trial date of 12/07/10 has been set. We do
not know if this lawsuit will adversely affect the City of Paducah at this time. However, if a
judgment is awarded the Plaintiffs, the City could be liable for a significant amount of back pay,
interest, and reasonable attorney fees.
D. Bond Refunding. In July 2010, the Commission approved an ordinance to refinance a bond issued
in 2001. The original bond issued was a 25 -year $9.29 million general obligation bond used to
finance the construction of the Paducah -McCracken County Expo Center and to make a contribution
to the construction of the Four Rivers Carson Center. Through the remaining life of the bond issue
(through 2026), the savings by refinancing will be approximately $987,000. The bonds were sold
July 29, 2010.
-27-
VIII. Requests for Information
This financial report is designed to provide a general financial overview for those interested in the City
of Paducah government finances. Questions or requests for additional financial information may be
addressed to Jonathan Perkins, Finance Director, City of Paducah, 300 South 5th Street, Paducah, KY
42001.
-28-
CITY OF PADUCAH, KENTUCKY
BASIC FINANCIAL STATEMENTS
GOVERNMENT -WIDE FINANCIAL STATEMENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2010
THIS PAGE INTENTIONALLY LEFT BLANK
ASSETS
Current Assets:
Cash and cash equivalents
Investments
Receivables, net:
Notes
Lease
Accounts
Grants
Interest
Property tax
Other
Internal balances
Inventory
Prepaid pension obligation
Prepaid expenses
Other current assets
Total current assets
Noncurrent Assets:
Notes receivable
Lease receivable
Bond issuance costs, net
Net capital assets:
Land and construction in progress
Depreciable capital assets
Other assets
Total noncurrent assets
Total assets
Exhibit 1
CITY OF PADUCAH, KENTUCKY
STATEMENT OF NET ASSETS
JUNE 30, 2010
3,519,873 -
3,625,253 -
303,431
16,278,192 62,152
23,253,398 1,590,809
Z^7A I"I
47,354,418 1,652,961
85,476,217 6,539,854
-29-
3,519,873
3,625,253
303,431
16,340,344
24,844,207
'2'YA '1^71
5,338,405
37,963,316
11 1^72 In A
49,007,379 45,474,825
M n14 n171 C1 ^7nA 7A'2
Primary Government
Governmental
Business -type
Component
Activities
Activities
Total
Units
$13,856,597
$2,475,130
$16,331,727
$ 3,346,051
4,900,778
1,525,000
6,425,778
-
1,152,500
-
1,152,500
-
590,719
-
590,719
-
5,661,263
544,593
6,205,856
575,885
541,263
95,569
636,832
159,797
51,151
6,749
57,900
-
4,346,106
-
4,346,106
-
-
-
-
900,304
(233,370)
233,370
-
-
1,487,095
-
1,487,095
457,669
5,706,840
-
5,706,840
-
15,000
6,482
21,482
16,043
45,857
-
45,857
773,669
38,121,799
4,886,893
43,008,692
6,229,418
3,519,873 -
3,625,253 -
303,431
16,278,192 62,152
23,253,398 1,590,809
Z^7A I"I
47,354,418 1,652,961
85,476,217 6,539,854
-29-
3,519,873
3,625,253
303,431
16,340,344
24,844,207
'2'YA '1^71
5,338,405
37,963,316
11 1^72 In A
49,007,379 45,474,825
M n14 n171 C1 ^7nA 7A'2
LIABILITIES
860,665
Primary Government
875,447
-
Landfill post -closure costs
Governmental
Business -type
2,062,500
Component
Current Liabilities:
Activities
Activities
Total
Units
Voucher and accounts payable
$ 1,444,612
$ 220,261
$ 1,664,873
$ 2,797,640
Accrued payables
739,816
37,934
777,750
103,258
Due to other taxing agencies
73,276
-
73,276
-
Unearned revenue
4,249,524
-
4,249,524
-
Accrued compensated absences
975,982
71,330
1,047,312
-
Accrued interest
183,298
-
183,298
-
Notes payable due within one year
1,117,596
-
1,117,596
57,415
Bonds payable due within one year
1,096,492
-
1,096,492
-
Other current liabilities
-
42,581
42,581
990,047
Total current liabilities
9,880,596
372,106
10,252,702
3,948,360
Noncurrent Liabilities:
Accrued compensated absences
860,665
14,782
875,447
-
Landfill post -closure costs
-
2,062,500
2,062,500
-
Notes payable
4,690,671
-
4,690,671
3,650,506
Bonds payable
24,564,948
-
24,564,948
-
Total noncurrent liabilities
30,116,284
2,077,282
32,193,566
3,650,506
Total liabilities
39,996,880
2,449,388
42,446,268
7,598,866
NET ASSETS
Invested in capital assets, net
of related debt
31,136,514
1,652,961
32,7899475
39,601,867
Restricted for:
Housing and development projects
19100,696
6209800
1,721,496
-
Capital projects
59077,026
-
590779026
-
Unrestricted
8,165,101
1,816,705
9,981,806
49503,510
TOTAL NET ASSETS
$4594799337
$490909466
$4995699803
$4491059377
See accompanying notes to the basic financial statements.
-30-
CITY OF PADUCAH, KENTUCKY
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2010
Primary Government:
Governmental activities:
General government
Public safety
Public service
Parks and recreation
Planning and development
Interest on long-term debt
Total governmental activities (See Note 1)
Business -type activities:
Solid Waste
Section Eight Housing
Civic Center
TISA
Total business -type activities
TOTAL PRIMARY GOVERNMENT
Component Units:
Authorities:
Paducah Water Works
Paducah Transit Authority
TOTAL COMPONENT UNITS
Exhibit 2
General revenues:
Taxes and licenses:
Property taxes, levied for general purposes
Franchise tax
Telecommunications tax
Insurance premium tax
Vehicle tax
Bank tax
Gross receipts license tax
Employee license tax
Other taxes
Transient room tax
Unrestricted investment earnings
Gain (loss) on sale of capital assets
Miscellaneous
Total general revenues
Transfers
Total general revenues and transfers
Change in net assets
Net assets, July 1, 2009
Adjustment to beginning net assets (See Note 10)
NET ASSETS, JUNE 30, 2010
See accompanying notes to the basic financial statements.
511
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Expenses
Services
Contributions
Contributions
$ 9,763,178
$ 993,371
$ 434,515
$ -
16,239,042
484,754
655,694
1,319,161
7,669,729
1,197,194
202,587
65,525
2,653,474
152,890
-
-
970,022
-
299,427
6,162
1,099,450
-
220,796
-
38,394,895
2,828,209
1,813,019
1,390,848
3,797,097
4,436,540
27,000
10,192
2,061,370
-
2,313,267
-
69,537
32,455
-
-
206,798
148,158
-
17,047
6,134,802
4,617,153
2,340,267
27,239
$44,529,697
$7,445,362
$4,153,286
$1,418,087
$ 6,965,498
$7,836,232
$ -
$ 473,251
4,500,195
1,457,800
1,708,085
3,036,612
$11,465,693
$9,294,032
$1,708,085
$3,509,863
General revenues:
Taxes and licenses:
Property taxes, levied for general purposes
Franchise tax
Telecommunications tax
Insurance premium tax
Vehicle tax
Bank tax
Gross receipts license tax
Employee license tax
Other taxes
Transient room tax
Unrestricted investment earnings
Gain (loss) on sale of capital assets
Miscellaneous
Total general revenues
Transfers
Total general revenues and transfers
Change in net assets
Net assets, July 1, 2009
Adjustment to beginning net assets (See Note 10)
NET ASSETS, JUNE 30, 2010
See accompanying notes to the basic financial statements.
511
Net (Expense) Revenue and Changes in Net Assets
Primary Government
-
Governmental
Business -type
Component
Activities
Activities
Total Units
$ (8,335,292)
$ -
$ (8,335,292) $ -
(13,779,433)
-
(13,779,433) -
(6,204,423)
-
(6,204,423) -
(2,500,584)
-
(2,500,584) -
(664,433)
-
(664,433) -
(878,654)
-
(878,654) -
(32,362,819)
-
(32,362,819) -
-
676,635
676,635 -
-
251,897
251,897
-
(37,082)
(37,082) -
-
(41,593)
(41,593) -
-
849,857
849,857 -
(32,362,819)
849,857
(31,512,962) -
-
-
-
1,343,985
-
-
-
1,702,302
-
-
-
3,046,287
4,207,736
-
4,207,736
-
149,642
-
149,642
-
794,027
-
794,027
-
3,797,347
-
3,797,347
-
585,495
-
585,495
-
204,522
-
204,522
-
4,229,102
-
4,229,102
-
16,384,509
-
16,384,509
-
610,984
-
610,984
-
499,484
-
499,484
-
172,213
33,724
205,937
17,338
64,620
1,112
65,732
(8,426)
-
-
-
84,560
31,699,681
34,836
31,734,517
93,472
(78,893)
78,893
-
-
31,620,788
113,729
31,734,517
93,472
(742,031)
963,586
221,555
3,139,759
46,383,801
3,126,880
49,510,681
40,965,618
(162,433)
-
(162,433)
-
$ 45,479,337
$4,090,466
$ 49,569,803
$44,105,377
-32-
CITY OF PADUCAH, KENTUCKY
BALANCESHEET
GOVERNMENTAL FUNDS
JUNE 30, 2010
ASSETS
Cash and cash equivalents
Investments
Accounts receivable:
Accounts
Grants
Interest
Property taxes (net of
allowances for uncollectibles)
Due from other funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities:
Voucher and accounts payable
Accrued payroll and payroll taxes
Due to other funds
Due to other taxing agencies
Deferred revenue
Accrued compensated absences
Total liabilities
Fund Balances:
Reserved for:
Capital improvements
Unreserved:
General Fund
Special Revenue Funds
Debt Service Fund
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
See accompanying notes to the basic financial statements.
-33-
Exhibit 3
4,260,766
$16,987,737 $2,476,934 $2,844,706
$ 667,100 $ 244,614 $
687,579 - -
975,573 - -
73,276 - -
4,214,499 - -
161,032 - -
6,779,059 244,614 -
- 2,232,320 2,844,706
10,208,678 - -
10,208,678 2,232,320 2,844,706
$16,987,737 $2,476,934 $2,844,706
Special
General
Revenue
General
Capital
Investment
Fund
Improvements
Fund
$ 3,585,045
$1,616,410
$1,209,091
2,500,000
500,000
500,000
6,190,514
159,292
160,000
295,182
201,208
-
10,391
24
24
4,260,766
$16,987,737 $2,476,934 $2,844,706
$ 667,100 $ 244,614 $
687,579 - -
975,573 - -
73,276 - -
4,214,499 - -
161,032 - -
6,779,059 244,614 -
- 2,232,320 2,844,706
10,208,678 - -
10,208,678 2,232,320 2,844,706
$16,987,737 $2,476,934 $2,844,706
Special
Revenue Debt
Bond Service
Fund Fund
Nonmajor Total
Governmental Governmental
Funds Funds
$2,919,471 $92,444 $1,306,578
- 150,778
- 204,787
- 44,873
- 516
$2,919,471 $92,444 $1,707,532
$10,729,039
3,650,778
6,714,593
541,263
10,955
4,260,766
$27,028,824
$ 258,255 $ 1,169,969
38,207 725,786
100,000 1,075,573
- 73,276
- 4,214,499
783 161,815
397,245 7,420,918
2,919,471 - -
- 1,310,287
- 92,444 -
2,919,471 92,444 1,310,287
$2,919,471 $92,444 $1,707,532
7,996,497
10,208,678
1,310,287
92,444
19,607,906
$27,028,824
-34-
Exhibit 4
CITY OF PADUCAH, KENTUCKY
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO STATEMENT OF NET ASSETS
JUNE 30, 2010
Total fund balance - total governmental funds $19,607,906
Amounts reported for governmental activities in the Statement
of Net Assets are different because:
Delinquent property taxes receivable are not reported in the
governmental funds balance sheet since they are not considered
"available" revenues. 85,340
The long-term notes receivable are not reported in the governmental
funds balance sheet since they are not available to pay current period
expenditures. 3,596,031
Interest receivable on the long-term notes receivable is not reported on
the governmental funds balance sheet since neither the note receivable
nor the interest is available to pay current period expenditures. 32,432
Inventory is not a current financial resource and, therefore, is not
reported in the governmental funds balance sheet. 1,416,130
A prepaid pension obligation is not a current financial resource, and
therefore, is not reported in the governmental funds balance sheet. 5,706,840
Capital assets used in governmental activities are not current financial
resources and, therefore, are not reported in the governmental funds
balance sheet. This amount includes capital assets of Internal Service
Funds. 39,531,590
Governmental funds report losses on direct financing leases when
incurred, whereas the loss of direct financing leases are deferred and
amortized over the life of the lease in the Statement of Net Assets. 374,271
Bond issuance costs used in governmental activities are not current
financial resources and, therefore, are not reported in the
governmental funds balance sheet. 303,431
(Continued)
-35-
CITY OF PADUCAH, KENTUCKY
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO STATEMENT OF NET ASSETS
JUNE 30, 2010
Receivables from direct financing leases are not available in the
current period and, therefore, are deferred in the governmental funds
balance sheet.
Accrued interest payments on debt are not due and payable in the
current period and, therefore, are not reported in the governmental
funds balance sheet.
The portion of accrued compensated absences not due and payable in
the current period and, therefore, not reported in the governmental
funds balance sheet.
Long-term debts of ($24,986,899) are not due and payable in the
current period and, therefore, they are not reported in the
governmental funds balance sheet. See Note 3 for detail. The long-
term debts are:
Due within one year $ 2,214,088
Due after one year 29,255,619
Internal service funds are used by management to charge the costs of
certain activities, such as insurance and fleet management, to
individual funds. The assets and liabilities of the Internal Service
Funds (net of amount allocated to business -type activities) not
included in other reconciling items are:
Current assets $ 4,494,299
Total liabilities (360,226)
Net amount allocated to
business -type activities (233,370)
NET ASSETS OF GOVERNMENTAL ACTIVITIES
See accompanying notes to the basic financial statements.
-36-
Exhibit 4
(Continued)
$ 4,215,972
(183,298)
(1,638,304)
(31,469,707)
3,900,703
$45,479,337
CITY OF PADUCAH, KENTUCKY
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Revenues:
Taxes
Licenses
Charges for services
Intergovernmental
Grants
Interest
Miscellaneous
Total revenues
Expenditures:
Current operations:
General government
Public safety
Public service
Parks and recreation
Planning and development
Other
Capital outlay
Debt service:
Principal requirement
Interest and fiscal requirement
Total expenditures
Excess (deficiency) of revenues over expenditures
Other Financing Sources (Uses):
Capital lease
Long-term debt draws
Long-term debt issued
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, July 1, 2009
Adjustment to beginning net assets (See Note 10)
FUND BALANCES, JUNE 30, 2010
See accompanying notes to the basic financial statements.
-37-
General
20,969,137
582,978
736,237
82,550
1,336,009
1111 "I
5,277,916
14,575,456
4,636,599
2,582,382
847,188
X1.'9 A'I A &A I
General
Capital
Improvements
1,112,184
14,043
670,302
1,796,529
8,324,312
Exhibit 5
Special
Revenue
Investment
Fund
4,010,631
7,002
A All 1711
680,099
!nA Ann
1,602,515 (6,527,783) 3,337,534
512,102
(2,054,996)
(1,542,894)
59,621
10,311,490
(162,433)
$ 10,208,678
1,176,866
6,095,916
(258,445)
7,014,337
486,554
1,745,766
45,524
481,635
(3,638,134)
(3,110,975)
226,559
2,618,147
$ 2,232,320 $ 2,844,706
Special
-
-
5,277,916
Revenue
Debt
Nonmajor
Total
Bond
Service
Governmental
Governmental
Fund
Fund
Funds
Funds
$ -
$ -
$ 511,595
$ 6,326,740
-
-
-
24,979,768
-
-
263,109
846,087
-
601,487
489,837
1,091,324
-
-
214,133
2,062,554
9,283
-
8,368
121,246
-
-
647,071
2,653,382
-
-
-
5,277,916
-
-
1,423,981
15,999,437
-
-
1,347,516
5,984,115
-
-
-
2,582,382
115,000
-
1,073,270
1,868,369
-
-
-
847,188
-
-
-
8,324,312
-
1,020,585
-
1,020,585
-
1,077,128
-
1,077,128
115,000
2,097,713
3,844,767
42,981,432
(105,717)
(1,496,226)
(1,710,654)
(4,900,331)
-
405,796
-
405,796
-
-
-
1,222,390
6,645,000
-
258,391
6,903,391
-
1,089,630
1,543,569
9,722,852
(3,619,812)
-
(322,322)
(9,893,709)
3,025,188
1,495,426
1,479,638
8,360,720
2,919,471
(800)
(231,016)
3,460,389
-
93,244
1,541,303
16,309,950
-
-
-
(162,433)
$ 2,919,471
$ 92,444
$ 1,310,287
$ 19,607,906
-38-
Exhibit 6
CITY OF PADUCAH, KENTUCKY
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2010
Net change in fund balances - total governmental funds $ 3,460,389
Amounts reported for governmental activities in the Statement
of Activities are different because:
Inventory purchases require the use of current financial resources
and, therefore, are reported as expenditures in governmental funds. 810,893
Inventory sales provide current financial resources and are reported
as revenues in governmental funds. (1,414,394)
Governmental funds report capital outlays as expenditures. However,
in the Statement of Activities, the cost of those assets is allocated
over their estimated useful lives as depreciation expense. This is the
amount of capital outlays in the current period. This amount includes
Internal Service Fund's capital outlays of $1,267,822. 8,763,073
Proceeds from the disposal of capital assets are reported gross in the
governmental funds because the related assets were recorded as
expenditures when purchased. However, the proceeds are netted with
the book value in the government -wide statement of activities. This
amount includes Internal Service Fund's book value of $30,811. (30,811)
Collections on long-term notes receivable and related interest
receivable are revenues in the governmental funds when collected. (149,517)
Delinquent property taxes receivable are not considered "available"
revenues in the governmental funds. (124,294)
Direct financing leases receivable are not considered "available"
revenues in the governmental funds. (194,167)
The prepayment of a pension obligation requires the use of current
financial resources and, therefore, is reported as an expenditure in
governmental funds. However, the prepayment does not affect net
assets in the government -wide Statement of Activities. (72,423)
Depreciation expense on capital assets is reported in the government -
wide Statement of Activities and Changes in Net Assets, but does not
require the use of current financial resources. Therefore,
depreciation expense is not reported as an expenditure in
governmental funds. This amount includes Internal Service Funds'
depreciation expense of $513,814. (3,607,763)
(Continued)
-39-
Exhibit 6
(Continued)
CITY OF PADUCAH, KENTUCKY
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2010
Proceeds from the issuance and draw down of debt provides current
financial resources and is reported as an other financing source in $(8,125,781)
governmental funds.
Capital acquisitions financed with long term financing excluded from
the governmental funds because it does not a produce or use current
financial resources (600,000)
Principal payments of debt require the use of current financial
resources and, therefore, are reported as expenditures in
governmental funds. However, principal payments of debt do not
affect net assets in the government -wide Statement of Activities. 1,020,585
Governmental funds report the effect of losses on direct financing
leases when incurred, whereas these amounts are deferred and
amortized in the Statement of Activities. (26,895)
Accrued interest payments on debt do not require the use of current
financial resources. Accrued interest is reported as an expenditure in
the government -wide Statement of Activities. (83,128)
Long-term accrued compensated absences do not require the use of
current financial resources and, therefore, are not reported as
expenditures in governmental funds. (8,901)
Governmental funds report the effect of bond issuance costs when
debt is issued, whereas these amounts are deferred and amortized in
the Statement of Activities. 99,770
Internal Service Funds are used by management to charge the costs of
certain activities, such as insurance and fleet management, to
individual funds. The net revenue of the Internal Service Funds is
reported with governmental activities net of the amount allocated to
business -type activities and depreciation expense. These amounts are
as follows:
Change in net assets
$ 294,651
Net of amount allocated to
business -type activities
(30,121)
Capital Outlays
(1,267,822)
Book value of disposals
30,811
Depreciation expense
513,814 (458,667)
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ (742,031)
See accompanying notes to the basic financial statements.
-40-
CITY OF PADUCAH, KENTUCKY
BUDGETARY COMPARISON STATEMENT (BUDGETARY BASIS)
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2010
Beginning budgetary fund balance
Resources (Inflows):
Taxes:
Real and personal,
current year
Real and personal,
prior year (net of refunds)
Franchise
Bank taxes
In lieu of tax payment
Penalty, interest and
advertising
Paducah Junior College
tax collections
Total taxes
Licenses:
Business licenses
Employee earnings
Comcast fees
Penalties
Alcoholic beverages
Insurance premium tax
Building permits
Electrical permits
Zoning change fees
Miscellaneous building
and electrical fees
KJDA payroll rebate
Total licenses
Charges for services:
Tax collection fee
Administrative charge
Base court revenue
Recreation fees
Total charges for services
Budgeted Amounts
Original Final
Actual
$10,149,057
Exhibit 7
Variance with
Final Budget
Positive
(Negative)
4,754,000
4,717,355
4,717,362
7
107,000
110,645
110,646
1
135,000
171,625
171,631
6
195,000
204,520
204,522
2
206,000
253,695
253,700
5
54,000
47,690
47,696
6
-
309,585
309,588
3
5,451,000
5,815,115
5,815,145
30
4,020,000
4,229,100
4,229,102
2
12,231,000
12,373,875
12,373,878
3
307,250
306,870
306,874
4
99,625
156,940
156,944
4
131,000
123,740
123,740
-
4,100,000
3,797,345
3,797,347
2
73,000
107,710
107,714
4
19,500
28,125
28,126
1
7,500
6,605
6,609
4
-
250
252
2
(245,700)
(161,450)
(161,449)
1
20,743,175
20,969,110
20,969,137
27
133,000
146,075
146,078
3
229,000
229,000
229,000
-
70,000
55,010
55,010
-
98,000
152,875
152,890
15
530,000
582,960
582,978
18
-41-
(Continued)
Exhibit 7
(Continued)
CITY OF PADUCAH, KENTUCKY
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
GENERALFUND
FOR THE YEAR ENDED JUNE 30, 2010
Other:
Property rent and sales
688,535
767,260
767,274
Variance with
Property upkeep and
Final Budget
maintenance
Budgeted Amounts
Actual
Positive
Grants:
Original
Final
Amounts
(Negative)
Police State Incentive
300,000
$ 288,755
$ 288,757
2
Police hiring supplement
-
121,170
121,172
2
Fire State Incentive
264,000
253,855
253,855
-
Ronald McDonald Grant
-
1,245
1,248
3
Kentucky League of Counties grants
-
7,500
7,500
-
Waste management grants
5,000
-
-
-
Paducah Housing Authority
Charges to Appropriations (Outflows):
-
after school program
65,000
8,370
8,372
2
Police supplemental grants
25,000
55,330
55,333
3
Total grants
659,000
736,225
736,237
12
Interest
153,000
82,545
82,550
5
Other:
Property rent and sales
688,535
767,260
767,274
14
Property upkeep and
maintenance
189,225
287,940
287,948
8
Contractual programs
5,000
7,290
7,294
4
E911 - GIS
23,885
23,885
23,885
-
Miscellaneous
209,915
249,595
249,608
13
Total other
1,116,560
1,335,970
1,336,009
39
Other financing sources:
Operating transfers in
-
512,355
512,102
(253)
Amounts available for appropriation
38,801,792
40,183,337
40,183,215
(122)
Charges to Appropriations (Outflows):
General government:
General administration:
Mayor and Commissioners
213,925
202,125
202,099
26
City Manager
343,160
436,470
436,426
44
City Clerk
173,570
166,680
166,646
34
Corporate Counsel
159,780
182,565
182,550
15
Non -departmental
285,000
830,000
830,000
-
Memberships and contingency
381,125
99,010
98,995
15
Civic beautification
4,010
3,770
3,768
2
Total general administration
1,560,570
1,920,620
1,920,484
136
(Continued)
-42-
CITY OF PADUCAH, KENTUCKY
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
GENERAL FUND
FOR THE YEAR ENDED NNE 30, 2010
General government:
Finance:
Finance administration
Accounting and payroll
Budget and human resources
Rental property
Radio operations
Revenue collection
Total finance
Planning:
Administration
Planning
Grants
Total planning
Human rights
Inspection:
Inspection administration
Construction
Code enforcement
Neighborhood redevelopment
Total inspection
Information technology
Risk management
Public safety:
Police:
Police administration
Patrol
Investigations
Total police
Fire:
Fire administration
Suppression
Prevention
Training
Total fire
Budgeted Amounts
Actual
Original
Final
Amounts
$ 193,345
$ 158,250
$ 158,209
312,905
284,425
284,384
272,450
252,955
252,904
134,735
34,720
34,706
57,680
455,470
455,459
384,250
364,380
364,333
1,355,365
1,550,200
1,549,995
97,573
52
244,165
260,425
260,382
84,540
78,045
78,006
161,735
162,665
162,642
490,440
501,135
501,030
cL nye
Ln nnn
aL nnn
Exhibit 7
(Continued)
Variance with
Final Budget
Positive
(Negative)
$ 41
41
51
14
11
47
,Inc
43
39
1nr
176,805
174,930
174,898
32
289,500
277,935
277,899
36
407,555
399,175
399,145
30
-
1,120
1,110
10
873,860
853,160
853,052
108
522,355
489,210
489,173
37
108,470
97,625
97,573
52
1,091,270
963,685
963,595
90
5,705,690
5,849,540
5,849,460
80
1,580,490
1,620,370
1,620,299
71
8,377,450
8,433,595
8,433,354
241
216,560
219,975
219,926
49
5,611,540
5,640,215
5,640,147
68
191,900
159,200
159,155
45
126,720
L 1 AL 171%n
122,790
L 1 A/1 1 On
122,754
L 1 Al n0/1
36
1nO
-43-
(Continued)
CITY OF PADUCAH, KENTUCKY
BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS)
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2010
Public service:
Public works:
Public Works Administration
Street maintenance
Street lighting
Maintenance
Downtown landscaping
Total public works
Engineering services:
Engineering services
GIS operation
Flood control
Total engineering services
Parks and recreation
Parks administration
Grounds maintenance
Pool
Recreation programs
Total recreation
Other:
Cable authority
Mainstreet program
Leave expense
Intergovernmental expense
Total other
Other financing uses:
Operating transfers out
Total charges to appropriations
BUDGETARY FUND BALANCE,
JUNE 30, 2010
Exhibit 7
(Continued)
See accompanying notes to the basic financial statements.
-44-
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 173,870
$ 166,885
$ 166,841
$ 44
2,151,500
2,049,455
2,049,395
60
535,000
494,680
494,680
-
1,379,715
1,075,952
1,075,892
60
900,905
805
785
20
5,140,990
3,787,777
3,787,593
184
434,550
380,630
380,574
56
-
3,490
3,475
15
460,245
465,020
464,957
63
894,795
849,140
849,006
134
757,055
657,265
657,207
58
-
1,333,698
1,333,628
70
122,340
111,850
111,817
33
454,140
479,780
479,730
50
1,333,535
2,582,593
2,582,382
211
85,665
85,105
85,096
9
237,475
300,710
300,691
19
-
(37,660)
(37,660)
-
-
309,590
309,588
2
323,140
657,745
657,715
30
1,271,825
2,055,015
2,054,996
19
28,459,515
29,976,230
29,974,537
1,693
$10,342,277
$10,207,107
$10,208,678
$ 1,571
See accompanying notes to the basic financial statements.
-44-
Exhibit 8
CITY OF PADUCAH, KENTUCKY
BUDGETARY COMPARISON STATEMENT
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2010
Note A - Explanation of Differences Between Budgetary Inflows and Outflows and GAAP Revenues and
Expenditures
General
Sources/inflows of resources: Fund
Actual amounts "available for appropriation" from
the budgetary comparison schedule $40,183,215
Differences - budget to GAAP:
The beginning fund balance is a budgetary resource,
but is not a current year revenue for financial
reporting purposes (10,149,057)
Transfers from other funds are inflows of budgetary
resources, but are not revenues for financial
reporting purposes (512,102)
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances -
governmental funds $29,522,056
Uses/outflows of resources:
Actual amounts "total charges to appropriations" from
the budgetary comparison schedule $29,974,537
Differences - budget to GAAP:
Transfers to other funds are outflows of budgetary
resources, but are not expenditures for financial
reporting purposes (2,054,996)
Total expenditures as reported on the statement of
revenues, expenditures, and changes in fund balances -
governmental funds $27,919,541
See accompanying notes to the basic financial statements.
-45-
Exhibit 9
CITY OF PADUCAH, KENTUCKY
BUDGETARY COMPARISON STATEMENT (BUDGETARY BASIS)
SPECIAL REVENUE INVESTMENT FUND
FOR THE YEAR ENDED JUNE 30, 2010
Amounts available for appropriation 6,695,147 7,162,927 7,162,939 12
Charges to Appropriations (Outflows):
General government:
Planning and development:
Economic development 884,500 680,100 680,099 1
Other financing uses:
Operating transfers out 3,692,500 3,638,135 3,638,134 1
Total charges to appropriations 4,577,000 4,318,235 4,318,233 2
BUDGETARY FUND BALANCE,
JUNE 30, 2010 $2,118,147 $2,844,692 $2,844,706 $ 14
See accompanying notes to the basic financial statements.
-46-
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Beginning budgetary fund balance
$2,618,147
$2,618,147
$2,618,147
$ -
Resources (Inflows):
Licenses:
Employee earnings
4,077,000
4,010,630
4,010,631
1
Interest
-
7,000
7,002
2
Total licenses
4,077,000
4,017,630
4,017,633
3
Other financing sources:
Long-term debt issued
-
45,520
45,524
4
Operating transfers in
-
481,630
481,635
5
Total licenses
-
527,150
527,159
9
Amounts available for appropriation 6,695,147 7,162,927 7,162,939 12
Charges to Appropriations (Outflows):
General government:
Planning and development:
Economic development 884,500 680,100 680,099 1
Other financing uses:
Operating transfers out 3,692,500 3,638,135 3,638,134 1
Total charges to appropriations 4,577,000 4,318,235 4,318,233 2
BUDGETARY FUND BALANCE,
JUNE 30, 2010 $2,118,147 $2,844,692 $2,844,706 $ 14
See accompanying notes to the basic financial statements.
-46-
Exhibit 10
CITY OF PADUCAH, KENTUCKY
BUDGETARY COMPARISON STATEMENT
SPECIAL REVENUE INVESTMENT FUND
FOR THE YEAR ENDED JUNE 30, 2010
Note A - Explanation of Differences Between Budgetary Inflows and Outflows and GAAP Revenues and
Expenditures
Sources/inflows of resources:
Actual amounts "available for appropriation" from
the budgetary comparison schedule
Differences - budget to GAAP:
The beginning fund balance is a budgetary resource,
but is not a current year revenue for financial
reporting purposes
Proceeds from the issuance of debt are inflows of budgetary
resources, but are not revenues for financial
reporting purposes
Transfers from other funds are inflows of budgetary
resources, but are not revenues for financial
reporting purposes
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances -
governmental funds
Uses/outflows of resources:
Actual amounts "total charges to appropriations" from
the budgetary comparison schedule
Differences - budget to GAAP:
Transfers to other funds are outflows of budgetary
resources, but are not expenditures for financial
reporting purposes
Total expenditures as reported on the statement of
revenues, expenditures, and changes in fund balances -
governmental funds
See accompanying notes to the basic financial statements.
-47-
$ 7,162,939
(2,618,147)
(45,524)
(481,635)
$ 4,017,633
$ 4,318,233
(3,638,134)
$ 680,099
CITY OF PADUCAH, KENTUCKY
BUDGETARY COMPARISON STATEMENT (BUDGETARY BASIS)
SPECIAL REVENUE BOND FUND
FOR THE YEAR ENDED JUNE 30, 2010
Beginning budgetary fund balance
Resources (Inflows):
Interest
Other financing sources:
Long-term debt issued
Operating transfers in
Total licenses
Amounts available for appropriation
Charges to Appropriations (Outflows):
General government:
Planning and development:
Bond issuance costs
Other financing uses:
Operating transfers out
Total charges to appropriations
BUDGETARY FUND BALANCE,
JUNE 30, 2010
Exhibit 11
- 115,000 115,000 -
- 3,619,815 3,619,812 3
- 3,734,815 3,734,812 3
$ - $ 2,919,465 $2,919,471 $ 6
See accompanying notes to the basic financial statements.
-48-
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
- 9,280
9,283
3
- 6,645,000
6,645,000
-
- 6,645,000
6,645,000
-
- 6,654,280
6,654,283
3
- 115,000 115,000 -
- 3,619,815 3,619,812 3
- 3,734,815 3,734,812 3
$ - $ 2,919,465 $2,919,471 $ 6
See accompanying notes to the basic financial statements.
-48-
Exhibit 12
CITY OF PADUCAH, KENTUCKY
BUDGETARY COMPARISON STATEMENT
SPECIAL REVENUE BOND FUND
FOR THE YEAR ENDED JUNE 30, 2010
Note A - Explanation of Differences Between Budgetary Inflows and Outflows and GAAP Revenues and
Expenditures
Sources/inflows of resources:
Actual amounts "available for appropriation" from
the budgetary comparison schedule
Differences - budget to GAAP:
The beginning fund balance is a budgetary resource,
but is not a current year revenue for financial
reporting purposes
Proceeds from the issuance of debt are inflows of budgetary
resources, but are not revenues for financial
reporting purposes
Transfers from other funds are inflows of budgetary
resources, but are not revenues for financial
reporting purposes
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances -
governmental funds
Uses/outflows of resources:
Actual amounts "total charges to appropriations" from
the budgetary comparison schedule
Differences - budget to GAAP:
Transfers to other funds are outflows of budgetary
resources, but are not expenditures for financial
reporting purposes
Total expenditures as reported on the statement of
revenues, expenditures, and changes in fund balances -
governmental funds
See accompanying notes to the basic financial statements.
-49-
$ 6,654,283
(6,645,000)
$ 9,283
$ 3,734,812
(3,619,812)
$ 115,000
Exhibit 13
CITY OF PADUCAH, KENTUCKY
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2010
See accompanying notes to the basic financial statements.
-50-
Governmental
Business -type Activities
Activities
ASSETS
Nonmajor
Internal
Solid
Enterprise
Service
Current Assets:
Waste
Funds
Totals
Funds
Cash and cash equivalents
$1,404,972
$1,070,158
$2,475,130
$3,127,559
Investments
1,525,000
-
1,525,000
1,250,000
Accounts receivable
540,395
4,198
544,593
-
Grants receivable
95,569
-
95,569
-
Interest receivable
6,749
-
6,749
30,774
Prepaid expenses
-
6,482
6,482
15,000
Inventory
-
-
-
70,966
Total current assets
3,572,685
1,080,838
4,653,523
4,494,299
Noncurrent Assets:
Net capital assets:
Land
62,152
-
62,152
-
Depreciable capital assets
1,302,465
288,344
1,590,809
2,661,881
Total noncurrent assets
1,364,617
288,344
1,652,961
2,661,881
Total assets
4,937,302
1,369,182
6,306,484
7,156,180
LIABILITIES
Current Liabilities:
Voucher and accounts payable
115,120
105,141
220,261
309,667
Accrued payroll and payroll taxes
37,934
-
37,934
14,030
Accrued compensated absences
69,688
1,642
71,330
-
Due to other funds
-
42,581
42,581
-
Total current liabilities
222,742
149,364
372,106
323,697
Noncurrent Liabilities:
Landfill post -closure costs
2,062,500
-
2,062,500
-
Accrued compensated absences
-
14,782
14,782
36,529
Total noncurrent liabilities
2,062,500
14,782
2,077,282
36,529
Total liabilities
2,285,242
164,146
2,449,388
360,226
NET ASSETS
Invested in capital assets
1,364,617
288,344
1,652,961
2,661,881
Restricted for:
Housing development projects
-
620,800
620,800
-
Unrestricted
1,287,443
295,892
1,583,335
4,134,073
TOTAL NET ASSETS
$2,652,060
$1,205,036
3,857,096
$6,795,954
Reconciliation to government -wide statements of net assets:
Adjustment to reflect the consolidation of Internal
Service Funds'
activities related to Enterprise Funds
233,370
NET ASSETS OF BUSINESS -TYPE ACTIVTFIES
$4,090,466
See accompanying notes to the basic financial statements.
-50-
Exhibit 14
CITY OF PADUCAH, KENTUCKY
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
TOTAL NET ASSETS - JUNE 30, 2010 $2,652,060 $1,205,036 $6,795,954
Reconciliation to government -wide statements of net assets:
Adjustment to reflect the consolidation of Internal Service Funds'
activities related to Enterprise Funds 30,121
CHANGE IN NET ASSETS OF BUSINESS -TYPE ACTIVITIES $ 963,586
See accompanying notes to the basic financial statements.
-51-
Governmental
Business -type Activities
Activities
Nonmajor
Internal
Solid
Enterprise
Service
Operating Revenues:
Waste
Funds
Totals
Funds
Charges for services - internal
$ -
$ 148,158
$ 148,158
$5,651,545
Charges for services - external
4,380,115
2,344,208
6,724,323
245,589
Miscellaneous
63,497
1,515
65,012
-
Total operating revenues
4,443,612
2,493,881
6,937,493
5,897,134
Operating Expenses:
Cost of sales and service
3,425,675
2,297,958
5,723,633
5,233,240
Depreciation and amortization
371,423
39,764
411,187
513,814
Total operating expenses
3,797,098
2,337,722
6,134,820
5,747,054
Operating income (loss)
646,514
156,159
802,673
150,080
Nonoperating Revenues (Expenses):
Interest and investment income
33,460
280
33,740
50,968
Gain (loss) on disposal of property
and equipment
1,112
-
1,112
64,620
Total nonoperating revenues (expenses)
34,572
280
34,852
115,588
Income (loss) before contributions and
transfers
681,086
156,439
837,525
265,668
Contributions and Transfers:
Capital contributions
-
17,047
17,047
-
Transfers in
-
78,893
78,893
28,984
Transfers out
-
-
-
-
Total contributions and transfers
-
95,940
95,940
28,984
Change in net assets
681,086
252,379
933,465
294,652
Total net assets, July 1, 2009
1,970,974
952,657
6,501,302
TOTAL NET ASSETS - JUNE 30, 2010 $2,652,060 $1,205,036 $6,795,954
Reconciliation to government -wide statements of net assets:
Adjustment to reflect the consolidation of Internal Service Funds'
activities related to Enterprise Funds 30,121
CHANGE IN NET ASSETS OF BUSINESS -TYPE ACTIVITIES $ 963,586
See accompanying notes to the basic financial statements.
-51-
CITY OF PADUCAH, KENTUCKY
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Cash Flows from Operating Activities:
Cash received from customers
Cash received from interfund services provided
Payments to suppliers
Payments to employees
Claims paid
Payments to internal service funds
Other receipts
Other payments
Net cash provided (used) by operating activities
Cash Flows from Noncapital Financing Activities:
Transfers (to) from other funds
Cash Flows from Capital and Related
Financing Activities:
Capital contributions
Purchase of capital assets
Proceeds from sale of capital assets
Net cash provided (used) by capital and
related financing activities
Cash Flows from Investing Activities:
Proceeds from sale of investment securities
Interest on cash and investments
Purchase of investments
Net cash provided (used) by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, July 1, 2009
CASH AND CASH EQUIVALENTS, JUNE 30, 2010
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation and amortization
Change in assets and liabilities:
Receivables
Prepaid expenses
Inventories
Due to other funds
Accrued expenses
Accounts payable
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
See accompanying notes to the basic financial statements.
Exhibit 15
$ 1,108,890 $ 269,267 $ 1,378,157 $ 1,446,737
-52-
Governmental
Business -type Activities
Activities
Nonmajor
Internal
Solid
Enterprise
Service
Waste
Funds
Totals
Funds
4,438,855
2,508,333
6,947,188
-
-
-
-
5,971,769
(1,444,794)
-
(1,444,794)
(275,479)
(1,373,875)
(123,998)
(1,497,873)
(278,107)
-
-
-
(3,100,439)
(574,793)
(4,268)
(579,061)
-
63,497
1,515
65,012
-
-
(2,112,315)
(2,112,315)
(871,007)
1,108,890
269,267
1,378,157
1,446,737
-
96,012
96,012
28,984
-
17,047
17,047
-
(269,594)
(73,136)
(342,730)
(1,267,823)
1,112
-
1,112
95,431
(268,482)
(56,089)
(324,571)
(1,172,392)
1,750,000
-
1,750,000
4,300,000
33,460
280
33,740
50,968
(2,025,000)
-
(2,025,000)
(2,350,000)
(241,540)
280
(241,260)
2,000,968
598,868
309,470
908,338
2,304,297
806,104
760,688
1,566,792
823,262
$ 1,404,972
$ 1,070,158
$ 2,475,130
$ 3,127,559
$ 646,514
$ 156,159
$ 802,673
$ 150,080
371,423
39,764
411,187
513,814
58,740
15,967
74,707
74,635
-
21,230
21,230
1,266,647
-
-
-
2,639
(801,000)
(8,211)
912
(7,299)
7,379
40,424
35,235
75,659
232,543
$ 1,108,890 $ 269,267 $ 1,378,157 $ 1,446,737
-52-
CITY OF PADUCAH, KENTUCKY
STATEMENT OF NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2010
ASSETS
Cash and cash equivalents
Receivables:
Accounts
Interest
Investments at fair value:
Money market funds
Certificates of deposit
Common stock
Corporate bonds
U.S. agencies bonds.
Mutual funds
Total assets
LIABILITIES
Voucher and accounts payable
Due to other funds
Payroll taxes and withholdings
payable
Total liabilities
NET ASSETS
Held in trust for pension benefits
and other purposes
See accompanying notes to the basic financial statements.
-53-
Exhibit 16
Primary Government
Private -
Pension purpose
Agency
Funds Trusts
Funds
58,680 $ 85,730
$111,335
- 3,000 -
27,158 - -
230,787 - -
125,000 - -
1,358,418 - -
365,209 - -
1,251,053 - -
S '7n5 Sna 4')A tina -
8,621,809 1,012,334 111,335
268 - -
- 3,276 -
- - 111,335
268 3,276 $111,335
$8,621,541 $1,009,058
Exhibit 17
CITY OF PADUCAH, KENTUCKY
STATEMENT OF CHANGES IN NET ASSETS
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Additions:
Contributions:
Employer
Plan members
Intergovernmental revenues
Private donations
Interfund transfers in
Total contributions
Investment income:
Net increase (decrease) in
fair value of investments
Loss on sale of investments
Interest and dividends
Net investment income
Total additions
Deductions:
Benefits
Capital outlay
Administrative expenses
Interfund transfers out
Total deductions
Change in net assets
Net assets, July 1, 2009
NET ASSETS, JUNE 30, 2010
880,537 80,246
- (5,898)
ncn Ann I n —n
1,132,944 93,191
1,603,189 185,008
1,799,186 -
- 893
55,997 13,910
- 8,112
t ncc nn nn nc
(251,994)
Private -
Pension
purpose
Funds
Trusts
$ 465,170
$ -
5,075
-
-
10,725
-
10,000
880,537 80,246
- (5,898)
ncn Ann I n —n
1,132,944 93,191
1,603,189 185,008
1,799,186 -
- 893
55,997 13,910
- 8,112
t ncc nn nn nc
(251,994)
162,093
8,873,535
846,965
$8,621,541
$1,009,058
See accompanying notes to the basic financial statements.
-54-
CITY OF PADUCAH, KENTUCKY
BASIC FINANCIAL STATEMENTS
COMPONENT UNITS FINANCIAL STATEMENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 309 2010
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PADUCAH, KENTUCKY
STATEMENT OF NET ASSETS
COMPONENT UNITS
JUNE 30, 2010
ASSETS
Current Assets:
Cash and cash equivalents
Receivables, net:
Accounts
Grants
Other
Inventories
Prepaid expenses
Other current assets
Total current assets
Noncurrent Assets:
Net capital assets:
Land and construction in progress
Depreciable capital assets
Other assets
Total noncurrent assets
Total assets
-55-
Exhibit 18
4,852,091
486,314 5,338,405
All
Paducah
Paducah
Component
Water
Transit
Unit
Works
Authority
Totals
2,173,532
$1,172,519
$ 3,346,051
395,204
180,681
575,885
-
159,797
159,797
900,304
-
900,304
442,669
15,000
457,669
-
16,043
16,043
773,669
-
773,669
A LOC 7^70
1 CAA AAA
L nnn A 1 0
4,852,091
486,314 5,338,405
33,189,978
4,773,338 37,963,316
2,173,104
- 2,173,104
40,215,173
5,259,652 45,474,825
A A nnn CC I
L On7 Lnn C1 'MA n A 7
LIABILITIES
Current Liabilities:
Voucher and accounts payable
Accrued payables
Notes payable due within one year
Other current liabilities
Total current liabilities
Noncurrent Liabilities:
Notes payable
Total noncurrent liabilities
Total liabilities
NET ASSETS
Net Assets:
Invested in capital assets,
net of related debt
Unrestricted
TOTAL NET ASSETS
34,446,501
5,155,366
All
Paducah
Paducah
Component
Water
Transit
Unit
Works
Authority
Totals
1,377,919
1,419,721
2,797,640
-
103,258
103,258
25,000
32,415
57,415
990,047
-
990,047
2,392,966
1,555,394
3,948,360
3,578,635
71,871
3,650,506
3,578,635
71,871
3,650,506
C A1/1 LA1
1 1Cn17 n1cc
^I CAO OLL
34,446,501
5,155,366
39,601,867
4,482,449
21,061
4,503,510
$38,928,950
$5,176,427
$44,105,377
See accompanying notes to the basic financial statements
-56-
CITY OF PADUCAH, KENTUCKY
STATEMENT OF ACTIVITIES
COMPONENT UMTS
FOR THE YEAR ENDED JUNE 30, 2010
FUNCTIONS/PROGRAMS
Authorities:
Business -type activities:
Paducah Water Works
Paducah Transit Authority
TOTAL COMPONENT UNITS
General Revenues:
Unrestricted investment earnings
Gain (loss) on disposal of assets
Miscellaneous general
Total general revenues and transfers
Change in net assets
Net assets, July 1, 2009
NET ASSETS, JUNE 30, 2010
Expenses
Exhibit 19
Program Revenues
Operating Capital
Charges for Grants and Grants and
Services Contributions Contributions
$ 6,965,498 $7,836,232
4,500,195 1,457,800
$11,465,693 $9,294,032
See accompanying notes to the basic financial statements.
-57-
1,708,085
$1,708,085
$ 473,251
3,036,612
$ 3,509,863
Net (Expense) Revenue and Changes
in Net Assets
Paducah
Paducah
Water
Transit
Works
Authority Totals
$ 1,343,985 $ - $ 1,343,985
- 1,702,302 1,702,302
1,343,985 1,702,302 3,046,287
17,140
198
17,338
2,520
(10,946)
(8,426)
-
84,560
84,560
19,660
73,812
93,472
1,363,645
1,776,114
3,139,759
37,565,305
3,400,313
40,965,618
$38,928,950
$5,176,427
$44,105,377
-58-
CITY OF PADUCAH, KENTUCKY
NOTES TO THE FINANCIAL STATEMENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 309 2010
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 1- Summary of Significant Accounting Policies:
General Statement
The City of Paducah (City) complies with generally accepted accounting principles (GAAP) as applied to
governmental units. This requires the use of the accrual basis of accounting for government -wide
financial statements and proprietary funds financial statements and a modified accrual basis of accounting
for the governmental funds financial statements. The Governmental Accounting Standards Board (GASB)
is the accepted standard-setting body for establishing governmental accounting and financial reporting
principles. The financial reporting entity, basis of accounting, and other significant policies employed by
the City are summarized as follows:
Financial Reporting Entity
The City operates under a City Manager form of government. The Board of Commissioners consists of a
Mayor and four Commissioners elected at large by the citizens on a non-partisan basis. As required by
generally accepted accounting principles, the financial statements of the reporting entity include those of
the City of Paducah (the primary government) and its component units. The component units discussed
below are included in the City's reporting entity because of the significance of their operational or
financial relationships with the City.
Blended Component Units
Police and Firefighters' Pension Fund — This retirement fund was established for the benefit of the
police and firemen of the City. It is administered by a Board of Trustees consisting of the Mayor, City
Finance Director and representatives of the Police and Fire Departments. The Board is authorized to
establish benefit levels and to approve actuarial assumptions used in the determination of contribution
levels.
Discretely Presented Component Units
The component unit column in the basic financial statements includes the financial data of the City's other
component units. They are reported in a separate column to emphasize that they are legally separate from
the City. The following component units are included in the reporting entity because of their financial
relationship with the City and the City is able to impose its will on the organizations.
Paducah Water Works — The City of Paducah Water Works Commission is appointed by the Mayor.
The rates for user charges and bond issuance authorizations are subject to approval by the City
Commission of the City of Paducah.
Transit Authority of the City of Paducah — The Transit Authority's governing board is appointed by
the Mayor of the City of Paducah. The City is the grantee agency receiving, on behalf of the Transit
Authority, its principal revenues. The City also contributes substantially to the operation of the
Authority by providing cash subsidies and facilities.
(Continued)
-59-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 1- Summary of Significant Accounting Policies:
Discretely Presented Component Units
Complete financial statements of the individual component units can be obtained from their respective
administrative offices in the following locations:
Paducah Water Works Transit Authority of the
401 Washington Street City of Paducah
Paducah, Kentucky 42003 850 Harrison Street
Paducah, Kentucky 42001
Related Organizations
City officials are also responsible for appointing the members of boards of other organizations, but the
City's accountability for these organizations do not extend beyond appointing authority. The
organizations listed below are notable related organizations which have not been included in the City's
report.
Paducah Housing Authority — The Paducah Housing Authority (PHA) is a legally separate entity that
provides for construction, operation and management of low income housing projects within the City.
PHA is a legally separate entity and is not financially accountable to the City. This organization is not
included as a component unit of the City.
Paducah Power System — The Paducah Power System (PPS) is a legally separate entity that provides
electric utilities to residents in the Paducah area. PPS is not financially accountable to the City. This
organization is not included as a component unit of the City.
Joint Sewer Agency — As of July 1, 1999, the assets and liabilities of the Wastewater/Stormwater Fund
were transferred to the Paducah -McCracken County Joint Sewer Agency pursuant to a municipal order
dated June 29, 1999. The Paducah -McCracken County Joint Sewer Agency is a legally separate entity
and is not financially accountable to the City. This organization is not included as a component unit of
the City.
Forest Hills Village. Inc. — The Corporation's purpose is to manage City of Paducah properties known
as "Forest Hills Housing Development". The City and Corporation have a lease agreement detailing
the terms and conditions of operations. Forest Hills Village, Inc. is a legally separate entity and is not
financially accountable to the City. This organization is not included as a component unit of the City.
Paducah Junior College. Incorporated (PJC) — The College is a part of the University of Kentucky
Community College System which is now administered by the Kentucky Community and Technical
College System. Under this system, the University of Kentucky receives the monies from student
tuition, fees and other related income and provides the financing for the operational budget of the
College. A tax levied and collected by the City is a primary revenue source for the College. These
funds, as well as gifts and grants made to the College, may be used for the acquisition or improvement
of property or to finance programs beyond the level of those normally provided by community colleges
in the University of Kentucky system. PJC is a legally separate entity and is not financially
accountable to the City. This organization is not included as a component unit of the City.
Mainstreet — Mainstreet is a 501(c)3 established for the promotion of cultural and economic growth in
Downtown Paducah. Mainstreet is a legally separate entity and is not financially accountable to the
City. This organization is not included as a component unit of the City.
(Continued)
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JLTNE 30, 2010
Note 1- Summary of Significant Account Policies:
Basis of Presentation
Government -wide Financial Statements
The Statement of Net Assets and Statement of Activities display information about the reporting
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 nonexchange revenues.
Business -type activities are financed in whole or in part by fees charged to external parties for goods or
services.
Fund Financial Statements
Fund financial statements of the reporting entity are organized into funds, each of which is considered to
be separate accounting entities. Each fund is accounted for by providing a separate set of self -balancing
accounts that constitute its assets, liabilities, fund equity, revenues, and expenditure/expenses. Funds are
organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed
on major funds within the governmental and proprietary categories. 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 ten 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 fund are at least five percent of the corresponding total for all governmental and enterprise
funds combined.
The funds of the financial reporting entity are described below:
Governmental funds are those funds through which most governmental functions typically are financed.
The measurement focus of governmental funds is on the sources, uses and balance of current financial
resources. The City has presented the following major governmental funds:
General Fund — To account for resources traditionally associated with governments which are not
required to be accounted for in another fund.
General Capital Improvements — To account for the acquisition or construction of major capital projects
other than those financed by proprietary fund operations and special assessments.
Special Revenue Bond Fund — To account for the proceeds from the issuance of the 2010 Build
America Bonds used for public improvement projects.
Special Revenue Investment Fund — To account for restricted funds from employee license fee used for
economic development, community redevelopment and infrastructure capital investments within
Paducah.
Debt Service Fund — To account for the accumulation of resources and payment of bond and note
principal and interest, and capital lease activity.
The City has presented the following major proprietary fund:
Solid Waste Fund — To account for the provision of refuse services to the residents of the City.
Additionally, the City reports the internal service funds which are used to account for the fleet
management services, self funded property and casualty self insurance and self funded health and
disability insurance provided to departments of the City.
(Continued)
-61-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 1- Summary of Significant Account Policies:
Basis of Presentation
Fund Financial Statements
Fiduciary funds report resources held in trust. Two of these funds are single -employer defined benefit
funds and are administered by the City. These funds are Police and Firefighters' Pension Fund (PFPF) and
Appointive Employee' Pension Fund (AEPF). Pension trust funds report the receipt, investment, and
distribution of retirement contributions. The remaining funds are private -purpose trust funds which report
the receipt and distribution of in accordance with maintenance trust agreements.
The Agency Fund accounts for the City's payroll wages, taxes and related withholdings.
Measurement Focus
Measurement focus is a term used to describe "which" transactions are recorded within the various
financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the
measurement focus applied.
On 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 as defined in item
b. below.
In the fund financial statements, the "current financial resources" measurement focus or the "economic
resources" measurement focus is used as appropriate:
a. All governmental 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, pension and private -purpose trust funds, and financial statements of City
component units 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) associated with their activities are reported. Proprietary, pension and private -purpose
trust fund equity is classified as net assets.
c. Agency funds are not involved in the measurement of results of operations; therefore, measurement
focus is not applicable to them.
Basis of Accounting
In the government -wide Statement of Net Assets and Statement of Activities, both governmental and
business -type activities are presented using the accrual basis of accounting generally including the
reclassification or elimination of internal activity (between or within funds). Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred
or economic asset used.
In the fund financial statements, governmental funds are presented on the modified accrual basis of
accounting. Under this modified accrual basis of accounting, revenues are recognized when "measurable
and available." Measurable means knowing or being able to reasonably estimate the amount. Available
means collectible within the current period or within sixty days after year end. Expenditures (including
(Continued)
-62-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 1- Summary of Significant Account Policies:
Basis of Accounting
capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond
principal and interest which are reported when due. Agency funds are presented using the accrual basis of
accounting.
All proprietary, pension and private -purpose funds utilize the accrual basis of accounting. Under the
accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the
liability is incurred or economic asset used.
Revenues — Exchange and Non -Exchange Transactions
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal
value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis,
revenue is recorded in the fiscal year in which the resources are measurable and become available.
Available means that the resources will be collected within the current fiscal year or are expected to be
collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the City,
available means expected to be received within sixty days of year end.
Non-exchange transactions, in which the City receives value without directly giving equal value in return,
include employee license taxes, property taxes, grants, entitlements and donations. The City considers
property taxes as available if they are collected within sixty days after year end. Revenue from grants,
entitlements, and donations is recognized in the year in which all eligibility requirements have been
satisfied. Eligibility requirements include timing requirements, which specify the year when the resources
are required to be used or the year when use is first permitted, matching requirements, in which the City
must provide local resources to be used for a specified purpose, and expenditure requirements, in which
the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue
from non-exchange transactions must also be available before it can be recognized.
The revenues susceptible to accrual are taxes, intergovernmental, employer and employees' contributions
to trust funds, interest revenue and charges for services. Permit revenues are not susceptible to accrual
because generally they are not measurable until received in cash.
Deferredlunearned revenue
The City reports unearned revenue on its government -wide statement of net assets and deferred revenue on
the fund financial statements. Deferred/unearned revenues arise when potential revenue does not meet
both the "measurable" and "available" criteria for recognition in the current period. Deferred/unearned
revenues also arise when resources are received by the City before it has a legal claim to them, as when
grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when
both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability
for deferred/unearned revenue is removed and revenue is recognized.
Allocation of Indirect Expenses
The City allocates indirect expenses primarily comprised of fleet management services and various self
funded insurance coverage provided to departments and employees of the City not directly allocated.
Allocations are charged to functions based on use by weighted -average methodology.
Budgets and Budgetary Accounting
The City legally adopts annual budgets for all governmental and proprietary funds except for Section Eight
Housing Fund. The City follows these procedures in establishing the budgetary data reflected in these
financial statements:
(Continued)
-63-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 1- Summary of Significant Accountine Policies:
Budgets and Budgetary Accounting
1. Prior to July, the City Manager submits to the City Commission a proposed operating budget for the
fiscal year commencing on July 1. The operating budget includes proposed expenditures and the
means of financing those.
2. Public hearings are conducted by the City to obtain taxpayer comments.
3. Prior to July, the budget is legally enacted through passage of an ordinance.
4. The City Manager is authorized to transfer budgeted amounts between department line items;
however, any revisions that alter the total expenditures of any department must be approved by the
City Commission.
5. Formal budgetary integration is employed as a management control device during the year and the
budget is legally adopted. Budget amendments are also legally adopted.
6. The budget is adopted on a basis (budget basis), which differs from generally accepted accounting
principles (GAAP basis).
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds,
Debt Service Fund, and Capital Projects Funds. In accordance with generally accepted accounting
principles (GAAP), encumbrances outstanding at year end are reported as reservations of fund balances
since they do not constitute expenditures or liabilities. There are no encumbrances at June 30, 2010.
Cash and Investments
The City Council updated and adopted formal deposit and investment policies in January 2001. These
policies apply to all City funds not contained in public trusts. Pension trust fund has investment policies
separately approved by their oversight board. The private purpose trust has no adopted deposit and
investment policy.
For the purpose of the Statement of Net Assets, "cash and cash equivalents" includes all demand and
savings accounts of the City. For the purpose of the proprietary fund Statement of Cash Flows, "cash and
cash equivalents" include all demand and savings accounts, and certificates of deposit or short-term
investments with an original maturity of three months or less.
Investments are reported at fair value which is determined using selected bases. Short-term investments
are reported at cost, which approximates fair value. Securities traded on a national or international
exchange are valued at the last reported sales price at current exchange rates. Managed funds related to the
pension and private purpose trust funds not listed on an established market are reported at estimated fair
value as determined by the respective fund managers based on quoted sales prices of the underlying
securities. Cash deposits and certificates of deposit are reported at carrying amount which reasonably
estimates fair value. Additional cash and investment disclosures are presented in Note 3.
Receivables
In the government -wide statements, receivables consist of all revenues earned at year end and not yet
received. Major receivable balances for the governmental activities include property taxes, employee
earnings taxes, business licenses, insurance premiums taxes, franchise taxes, grant revenue and interlocal
note receivable. Business -type activities report utilities and interest earnings as their major receivables.
(Continued)
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 1- Summary of Sienificant Accountine Policies:
Receivables
The government -wide statements also include general obligation notes receivable related to the general
obligation bonds outstanding as described in Note 3. In the fund financial statements, receivables in
governmental funds include revenue accruals such as franchise tax, employee earnings taxes, business
licenses, insurance and grants and other similar intergovernmental revenues since they are usually both
measurable and available.
Nonexchange transactions collectible but not available are deferred. Interest and investment earnings are
recorded when earned only if paid within sixty days since they would be considered both measurable and
available. Proprietary fund receivables include revenues earned at year end and not yet received. Utility
accounts receivable and interest earnings compose the majority of proprietary fund receivables.
Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of
accounts receivable.
Interfund Receivables and Payables
During the course of operations, numerous transactions occur between individual funds that may result in
amounts owed between funds. Those related to goods and services type transactions are classified as "due
to and from other funds." Short-term interfund loans are reported as "interfund receivables and payables."
Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds."
Interfund receivables and payables between funds within governmental activities are eliminated in the
Statement of Net Assets. See Note 3 for details of interfund transactions, including receivables and
payables at year end.
Inventories
Inventories are stated at cost on a first -in, first -out basis. Inventory consists of expendable supplies of
$70,966 held for consumption and real property of $1,416,129 held for urban development.
Capital Assets
The accounting treatment of property, plant, and equipment (capital assets) depends on whether the assets
are used in governmental fund operations or proprietary fund operations and whether they are reported in
the government -wide or fund financial statements.
Government -wide Statement
In the government -wide financial statements, property, plant, and equipment are accounted for as capital
assets. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable,
except for donated capital assets which are recorded at their estimated fair value at the date of donation.
Estimated historical cost was used to value the majority of the assets acquired prior to June 30, 2004.
Assets capitalized have an original cost of $500 or more prior to July 1, 1999, $2,500 or more after July 1,
1999, and $3,000 or more after June 24, 2009. Prior to July 1, 2002, governmental funds' infrastructure
assets were not capitalized. These assets have been valued at estimated historical cost.
(Continued)
'1.T.11
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 1- Summary of Significant Accounting Policies:
Capital Assets
Capital assets of the primary government are depreciated over the estimated useful lives using the straight-
line method. The estimated useful lives are as follows:
Land improvements
10-15 Years
Buildings
30 Years
Building improvements
10-15 Years
Infrastructure
15-30 Years
Equipment
7-9 Years
Furnishings and fixtures
3-5 Years
Vehicles
5-7 Years
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as
capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary
fund operations are accounted for the same as in the government -wide statements.
Restricted Assets
Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for their
repayment, are classified as restricted assets on the balance sheet because their use is limited to applicable
bond covenants.
Compensated Absences
Accumulated unpaid vacation, sick pay, and other employee benefit amounts are recorded as long-term
debt in the government -wide statements. The current portion of accrued compensated absences is
estimated based on historical trends. In the fund financial statements, governmental funds report only the
matured compensated absence liability payable from expendable available financial resources, while the
proprietary funds report the liability as it is incurred.
Accumulations for vacation pay are restricted to a maximum of 50 days and provide vesting rights upon
completion of six months service. Accumulations for sick pay are restricted to a maximum of 150 days
and provide payment to employees or beneficiaries for accumulations in excess of 50 days and up to 120
days upon death or retirement from City service. Qualified participants in the County Employee's
Retirement System, under certain circumstances, are eligible to convert accrued sick pay benefits into
additional credit for years of service upon retirement.
Long -Term Debt
The accounting treatment of long-term debt depends on whether the assets are used in governmental fund
operations or proprietary fund operations and whether they are reported in the government -wide or fund
financial statements.
All long-term debt to be repaid from governmental and business -type resources is reported as liabilities in
the government -wide statements. The long-term debt consists primarily of bonds payable, notes payable
and accrued compensated absences.
Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. The
debt proceeds are reported as other financing sources and payment of principal and interest as
expenditures. The accounting for proprietary funds is the same in the fund statements as it is in the
government -wide statements.
(Continued)
-66-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 1- Summary of Significant Accounting Policies:
Equity Classifications
Government -wide Statements
Equity is classified as net assets and displayed in three components:
a. Invested in capital assets, net of related debt — Consists of capital assets including restricted capital
assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds,
mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or
improvement of those assets.
b. Restricted net assets — Consists of net assets with constraints placed on the use either by (1) external
groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2)
law through constitutional provisions or enabling legislation.
c. Unrestricted net assets — All other net assets that do not meet the definition of "restricted" or
"invested in capital assets, net of related debt."
Fund Statements
Governmental fund equity is classified as fund balance. Fund balance is further classified as reserved and
unreserved. Proprietary fund equity is classified the same as in the government -wide statements.
Interfund Transactions
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that
are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and
as reductions of expenditures/expenses in the fund that is reimbursed.
All other interfund transactions are reported as operating transfers.
Program Revenues
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Operating and Non -Operating Revenues and Expenses — Proprietary Funds
Operating revenues and expenses for proprietary funds are those that result from providing services and
producing and delivering goods and/or services. It also includes all revenue and expenses not related to
capital and related financing, noncapital financing, or investing activities. Operating expenses for the
enterprise and internal service funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
(Continued)
-67-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 1 - Summary of Significant Accounting Policies:
Expenditures/Expenses
In the government -wide financial statements, expenses are classified by function for both governmental
and business -type activities.
In the fund financial statements, expenditures are classified as follows:
Governmental Funds — by character: Current (further classified by function)
Debt Service
Capital Outlay
Proprietary Fund — by operating and nonoperating
In the fund financial statements, governmental funds report expenditures of financial resources.
Proprietary funds report expenses relating to use of economic resources.
Interfund Transfers
Permanent reallocation of resources between funds of the reporting entity are classified as interfund
transfers. For the purposes of the Statement of Activities, all interfund transfers between individual
governmental funds have been eliminated.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make assumptions that affect reported amounts and disclosures. Accordingly,
actual results could differ from those estimates.
Stewardship, Compliance, and Accountability
By its nature as a local government unit, the City and its component units are subject to various federal,
state, and local laws and contractual regulations. An analysis of the City's compliance with significant
laws and regulations and demonstration of its stewardship over City resources follows.
Fund Accounting Requirements
The City complies with all state and local laws and regulations requiring the use of separate funds.
Revenue Restrictions
The City has various restrictions placed over certain revenue sources from state or local requirements. The
primary restricted revenue sources include.
Revenue Source
Section Eight Housing Choice Voucher Program
American Recovery & Reinvestment Act Grants
HOME Investment Partnerships Grant
Emergency Communication Revenue
County Bed Tax
Homeland Security Grant Program
Kentucky Housing Corporation
Other Grants
25% of Employee Earning Tax
M
Legal Restrictions of Use
Subsidize Rental Costs for Low -
Income Families
Job creation and retention
Construction of Low-income
Rental Units
E-911 Emergency Services
Debt Obligations
Homeland Security Enhancement
Fagade Loans
Grant Program Expenditures
Economic, Community and
Capital Development
(Continued)
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 1- Summary of Significant Accounting Policies:
Stewardship, Compliance, and Accountability
Revenue Restrictions
For the year ended June 30, 2010, the City complied, in all material respects, with these revenue
restrictions.
Debt Restrictions and Covenants
The City may not incur any indebtedness that would require payment from resources beyond the current
fiscal year revenue without first obtaining voter approval.
Subsequent Events
In preparing these financial statements, management has evaluated events and transactions for potential
recognition or disclosure through December 16, 2010, the date financial statements were available to be
issued.
Note 2 - Prouerty Taxes:
The City bills and collects its own property taxes. The City elects to use the annual property assessment
prepared by McCracken County as its base to apply the property tax rate. According to Kentucky Revised
Statutes, the assessment date for the City must conform to the assessment date of McCracken County, and
the annual increase in the property tax levy cannot exceed 4%. City property tax revenues are recorded as
a receivable when assessed because the City has an enforceable legal claim to the resources. At this time,
the receivable is offset by unearned revenue. Property tax revenues are recognized during the period for
which they are levied.
The due dates and collection period for all property taxes, exclusive of vehicle taxes, for the fiscal year
ended June 30, 2010, are as follows:
Description
Assessment and enforceable lien
Levy
Face value amount payment dates
Delinquent date - 10% penalty
plus 1/2% per month
Note 3 - Detail Notes on Transaction Classes/Accounts:
Date
January 1, 2009
September 25, 2009
1"half by November 1, 2009
2nd half by February 1, 2010
0 half - November 30, 2009
2❑d half - February 28, 2010
The following notes present detail information to support the amounts reported in the basic financial
statements for its various assets, liabilities, equity, revenues, and expenditures/expenses.
Deposits
Custodial credit risk for deposits is the risk that in the event of a bank failure, the City's deposits may not
be returned or the City will not be able to recover collateral securities in the possession of an outside party.
The City's investment policy requires all investments be made in accordance with applicable legal
requirements with consideration of investment safety. Accordingly, the City maintains collateral
agreements with its financial institutions. Deposits are 101% secured with collateral valued at market or
par, whichever is lower, less the amount of the Federal Deposit Insurance Corporation insurance (FDIC).
The City Commission approves and designates a list of authorized depository institutions based on
evaluation of solicited responses and certifications provided by financial institutions and recommendations
of an evaluation committee and/or Finance Director.
(Continued)
-69-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 3 - Detail Notes on Transaction Classes/Accounts:
Deposits
Deposits of the City's reporting entity are insured or collateralized with securities held by the City, its
agent, or by the pledging financial institution's trust department or agent in the name of City. During the
year ended June 30, 2010, the City's only cash and cash equivalents were demand deposits. At year end,
the carrying amount and the bank balance of the City's cash and cash equivalents was $16,587,472 and
$21,251,585, respectively.
Investments
As of June 30, 2010, the City's reporting entity had the following investments:
TOTAL FIDUCIARY
AND PRIVATE
PURPOSE TRUST
FUNDS SE45E515
-70-
(Continued)
Fair Value/
Average
Investment Maturities (In Years)
(2)
Carrying
Credit Quality/
Less
Greater
Tunes of Investments
Amount
Ratine (1)
Than 1
1-5
6-10
Than 10
Primary Government
Money market funds
$ 100,778
NA
$ 100,778
$ -
$ -
$ -
Certificates of deposit (3)
6,325.000
NA
2,450,000
3,875,000
-
-
TOTAL PRIMARY
GOVERNMENT
$6.425.778
Fiduciary and Private
Purpose Trust Funds
Money market funds
$ 230,787
NA
$ 230,787
$ -
$ -
$ -
Certificates of deposit (3)
125,000
NA
-
125,000
-
-
Common stock
1,358,418
NA
NA
NA
NA
NA
Corporate bonds
365,209
AIA-
-
365,209
-
-
U.S. agencies (4)
1,251,053
AAA/A
-
1,148,368
102,685
-
Mutual funds
Equity
3,902,088
NA
NA
NA
NA
NA
Commodities
504,151
NR
NA
NA
NA
NA
Fixed
1,568,259
NA
NA
NA
NA
NA
Index
154,610
NA
NA
NA
NA
NA
TOTAL FIDUCIARY
AND PRIVATE
PURPOSE TRUST
FUNDS SE45E515
-70-
(Continued)
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 3 - Detail Notes on Transaction Classes/Accounts:
Investments
(1) Ratings are provided where applicable to indicate associated Credit Risk. NA indicates not applicable.
NR indicates that instrument is not rated.
(2) Maturities are provided for debt instruments with maturity dates. NA indicates not applicable.
(3) $125,000 of the fiduciary's certificates of deposit is pooled with the primary government's certificates
of deposit.
(4) Includes $493,161 of securities callable as of June 30, 2010.
Investment Policies
City Policy
Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
Generally, the City's investing activities are managed under the custody of the City's Finance Director.
Investing is performed in accordance with investment policies adopted by the City Commission complying
with State Statutes. In accordance with the City's investment policy and the State Statutes, the City may
invest funds temporarily in excess of operating needs in the following:
Kentucky Revised Statutes (KRS 66.480) authorize the City to invest in:
1. Obligations of the U.S. Treasury, agencies, and instrumentalities, including obligations subject to
repurchase agreements, provided delivery of obligations subject to repurchase agreements are held
by the City or through an authorized agent;
2. Obligations and contracts for future delivery or purchase of obligations backed by the full faith and
credit of the United States or a United States government agency;
3. Obligations of any corporation of the United States government;
4. Bonds or certificates of indebtedness of the Commonwealth of Kentucky and of its agencies and
instrumentalities;
5. Certificates of deposit issued by or other interest-bearing accounts of any bank or savings and loan
institution which are insured by the Federal Deposit Insurance Corporation or similar entity or which
are collateralized, to the extent uninsured, by any obligations permitted by section 41.240(4) of the
Kentucky Revised Statutes;
6. Securities issued by a state or local government, or any instrumentality or agency thereof, in the
United States, and rated in one of the three highest categories by a national recognized rating
agency.
Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. The City policy provides that to the extent practicable, investments are matched with
anticipated cash flows. Investments are diversified to minimize the risk of loss resulting from
overconcentration of assets in a specific maturity period, a single issuer, or an individual class of
securities. Unless matched to a specific cash flow, investments are not, in general, made in securities
maturing more than five years from the date of purchase. Surplus cash may be invested in securities
exceeding five years if the maturity of such investments is made to coincide as nearly as practicable with
the expected use of the investment. Concentration of credit risk is the risk of loss attributed to the
magnitude of the City's investment in a single issuer. The City policy does not specifically address
concentration of credit risk.
(Continued)
-71-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 3 - Detail Notes on Transaction Classes/Accounts:
Investment Policies
Pension Trust Policy
The City's pension trust is the Police and Firefighters' Pension Fund (PFPF). Investment policy provides
for investment manager(s) who have full discretion of assets allocated to them subject to the overall
investment guidelines set out in the policy. Overall investment guidelines provide for diversification and
allow investment in domestic and international common stocks, fixed income securities, and cash
equivalents. Custodial credit risk is addressed by the policy providing for the engagement of a custodian
who accepts possession of securities for safekeeping; collects and disburses income; collects principal of
sold, matured, or called items; and provides periodic accounting to the pension board.
Asset allocation guideline for the plan is as follows:
Equities
Fixed income
PFPF Retirement Plan
Minimum Target Maximum
35% 50% 65%
35% 50% 65%
The retirement plan addresses credit risk and concentration of credit risk with a policy that prohibits
investment of more than 5% of its assets in the securities of any one issuer with the exception of U.S.
government. Policy further prohibits investment of more than 20% in any one market sector. No more
than 10% of corporate debt securities in the fixed income portfolio may be rated below -investment grade.
Commercial paper must be rated Al, P1.
Interest rate risk is addressed by the policy requiring the plan manager(s) to maintain both diversification
and a predictable and dependent source of current income. Fixed income investments are flexibly
allocated among maturities of different lengths.
Private Purpose Trust
The private purpose trust does not have a formal investment policy. The City established the trust in
accordance with Kentucky Revised Statutes. The trust provides for an investment manager who has full
discretion of assets allocated to him subject to the provisions of the trust agreement. The trust invests in
domestic and international mutual funds, fixed income securities, U.S. treasury securities, and cash and
equivalents.
Capital Assets
Capital asset activity for the year ended June 30, 2010, was as follows:
(Continued)
10a
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 3 - Detail Notes on Transaction Classes/Accounts:
Capital Assets
Balance
Balance
Primary Government:
July 1, 2009
Additions
Deductions
June 30, 2010
Capital assets, not being depreciated:
Land
$ 6,239,585
$ 941,443
$ -
$ 7,181,028
Construction -in -progress
3,610,527
7,127,819
1,641,182
9,097,164
Total capital assets, not being
depreciated
9,850,112
8,069,262
1,641,182
16,278,192
Capital assets, being depreciated:
Land improvements
3,061,972
-
-
3,061,972
Buildings and improvements
15,445,256
-
-
15,445,256
Infrastructure
34,918,483
284,396
-
35,202,879
Equipment
8,290,078
782,772
367,154
8,705,696
Furnishings and fixtures
230,312
-
19,332
210,980
Vehicles
7.582,726
1,267,823
1,399,481
7,451,068
Totals at historical cost
69,528,827
2,334.991
1,785,967
70,077,851
Less accumulated depreciation:
Land improvements
1,247,124
85,834
-
1,332,958
Buildings and improvements
11,410,888
280,281
-
11,691,169
Infrastructure
19,733,385
2,108,357
-
21,841,742
Equipment
6,615,056
631,258
367,154
6,879,160
Furnishings and fixtures
224,707
1,525
19,333
206,899
Vehicles
5,740,687
500,508
1,368,670
4,872,525
Total accumulated depreciation
44,971,847
3,607.763
1,755,157
46,824,453
Total capital assets, being
depreciated, net
24,556,980
(1,272,772)
30,810
23,253,398
PRIMARY GOVERNMENT
ACTIVITIES CAPITAL
ASSETS, NET
34.407.092
4 1
SL67LM
$39.531.590
Balance
Balance
Business -type Activities:
July 1, 2009
Increases
Decreases
June 30, 2010
Capital assets, not being depreciated:
Land
$ 65,908
$ -
$ 3,756
$ 62,152
Construction -in -progress
-
-
-
-
Total capital assets, not being
depreciated
65,908
-
3,756
62,152
Capital assets, being depreciated:
Buildings and improvements
429,254
-
-
429,254
Equipment
1,405,469
130,359
18,999
1,516,829
Vehicles
2,559,093
212,370
-
2,771,463
Totals at historical cost
4,393,816
342,729
18,999
4,717,546
(Continued)
-73-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 3 - Detail Notes on Transaction Classes/Accounts:
Capital Assets
Total capital assets, being
depreciated, net 1,655.511 (68,458) (3,756) 1,590,809
BUSINESS -TYPE ACTIVITIES
CAPITAL ASSETS, NET 1_.721.419 (68.457) $ 1 1.652.961
Depreciation expense was charged to governmental activities as follows:
General government:
Balance
General administration
$ 150,115
Balance
Business -type Activities:
July 1, 2009
Increases
Decreases
June 30, 2010
Less accumulated depreciation:
1,295
Information systems
-
Fleet maintenance
Buildings and improvements
$ 201,876
$ 12,914
$ 3,756
$ 211,034
Equipment
996,492
112,159
18,999
1,089,652
Vehicles
1,539,937
286,114
1,826,051
Total accumulated depreciation
2,738,305
411,187
22,755
3,126,737
Total capital assets, being
depreciated, net 1,655.511 (68,458) (3,756) 1,590,809
BUSINESS -TYPE ACTIVITIES
CAPITAL ASSETS, NET 1_.721.419 (68.457) $ 1 1.652.961
Depreciation expense was charged to governmental activities as follows:
General government:
General administration
$ 150,115
Finance
2,018
Planning
4,135
Inspections
528
Personnel
1,295
Information systems
-
Fleet maintenance
10,264
Total general government
Public safety:
Police
Fire
Grants
Emergency 911
Court awards
Fleet Lease Trust
Total public safety
Public service:
Public works
Engineering
Total public service
-74-
168.355
147,040
35,368
58,114
84,540
14,869
503.550
843,481
81,542
247,018
328.560
(Continued)
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 3 - Detail Notes on Transaction Classes/Accounts:
Capital Assets
Parks and recreation 156,710
Planning and development:
-
Infrastructure
2,108,786
Grants
1,871
Total planning and development
2,110,657
TOTAL DEPRECIATION EXPENSE —
5,990,903
GOVERNMENTAL ACTIVITIES
3.607.763
Depreciation expense was charged to business -type activities as follows:
Solid Waste Fund
$ 371,423
Section Eight Housing
7,200
Civic Center
10,495
TISA Fund
22,069
TOTAL DEPRECIATION EXPENSE —
26,670,801
BUSINESS -TYPE ACTIVITIES 4 1
Balance Balance
Discretely Presented July 1. 2009 Increases Decreases June 30, 2010
Component Units:
Capital assets, not being depreciated:
Land $ 486.314 $ $ $ 486.314
Total capital assets, not being
-
depreciated
486,314
Capital assets, being depreciated:
4,316,372
Buildings and improvements
1,680,992
Equipment
5,990,903
Utility plant
60,913,286
Total capital assets, being
depreciated
68,585,181
Less accumulated depreciation:
Buildings and improvements
755,074
Equipment
3,894,358
Utility plant
26,670,801
Total accumulated depreciation
31,320,233
Total capital assets, being
depreciated, net
37,264,948
COMPONENT UNIT
CAPITAL ASSETS, NET
37.751.262
486,314
70,421 - 1,751,413
2,559,558 349,155 8,201,306
5,176,299 77,745 66,011,840
7.806.278 426.900 75.964.559
107,935
-
863,009
756,474
334,460
4,316,372
1,376,715
77,745
27,969,771
2,241,124
412,205
33,149,152
5,565,154
14,695
42,815,407
5,565.154
14
43.301.721
(Continued)
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 3 - Detail Notes on Transaction Classes/Accounts:
Capital Assets
Depreciation expense, charged to functions/programs of discretely presented major component units as
follows:
Paducah Water Works $ 1,376,715
Paducah Transit Authority 864,409
TOTAL DEPRECIATION EXPENSE BY ACTIVITY L2,241.124
Accounts Payable
Payables in the governmental and proprietary funds are composed of payables to vendors and accrued
salaries and benefits.
Long -Term Liabilities
The City's long-term liabilities are segregated between the amounts to be repaid from governmental
activities and amounts to be repaid from business -type activities.
Governmental Activities
As of June 30, 2010, the governmental long-term liabilities consisted of the following:
General obligation bonds:
Current portion
$ 1,096,492
Noncurrent portion
24,564,948
TOTAL GENERAL OBLIGATION
BOND COSTS
25.661.440
Note payable:
Current portion
$ 1,117,596
Noncurrent portion
4,690,671
TOTAL NOTE PAYABLE PAYMENTS5.808.267
Accrued compensated absences:
Current portion
$ 975,982
Noncurrent portion
860.665
TOTAL ACCRUED COMPENSATED
ABSENCES
1.836.647
Business -type Activities
As of June 30, 2010, the long-term liabilities payable from proprietary fund resources consisted of the
following:
Accrued compensated absences:
Current portion $ 71,330
Noncurrent portion 14,782
TOTAL ACCRUED COMPENSATED
ABSENCES $ 86.112
(Continued)
-76-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 3 - Detail Notes on Transaction Classes/Accounts:
Long -Term Liabilities
General Obligation Bonds
Series 2001 Bond Issue — The City of Paducah issued general obligation bonds of $9,290,000 in June
2001, to finance construction of the new Luther F. Carson Four Rivers Center for the Performing Arts and
the expansion of the Julian Carroll Convention Center. Interest rates range from 3.5% to 5%. These bonds
are required to be fully paid within 25 years from the date of issue and are backed by the full faith and
credit of the City. While these bonds are issued by the City, 50% of the principal amount of the bonds was
issued on behalf of the County of McCracken, Kentucky which intends to participate on an equal basis
with the City in financing the projects and has issued the City a general obligation note in a principal
amount equal to 50% of the principal amount of the bonds and bearing interest at the same rates as the
City's bonds in order to secure the County's obligations to the City. This note receivable is reflected in the
government -wide Statement of Net Assets. In accordance with an Interlocal Cooperation Agreement
between the City, McCracken County, Kentucky (the County), and the Paducah -McCracken County
Tourist and Convention Commission (the Bureau), principal and interest payments on the bonds are being
made from an additional 2% transient room tax collected by the County with the remaining payments split
evenly between the City, the County, and the Bureau.
Series 2004 Bond Issue — The City of Paducah issued general obligation bonds of $5,000,000 in June
2004, to finance construction of the new Infiniti Media Building. Interest rates range from 2.25% to 6%.
These bonds are required to be fully paid within 20 years from the date of issue and are backed by the full
faith and credit of the City. While these bonds are issued by the City, 50% of the principal amount of the
bonds was issued on behalf of the County of McCracken, Kentucky which intends to participate on an
equal basis with the City in financing the projects and has issued the City a general obligation note in a
principal amount equal to 50% of the principal amount of the bonds and bearing interest at the same rates
as the City's bonds in order to secure the County's obligations to the City. This note receivable is reflected
in the government -wide Statement of Net Assets. Principal and interest payments prior to September 1,
2007, on the bonds were split evenly between the City and the County. After September 1, 2007, the City
and County will pay 2.031% of the bond payments with the remaining amount being made from a sale -
lease with Infiniti Plastic Technologies, Inc.
Series 2005 Bond Issue — The City of Paducah issued general obligation bonds of $6,100,000 in November
2005, to finance the police and firefighter's pension fund estimated actuary liability. Interest rate is fixed
at 5.35%. These bonds are required to be fully paid within 20 years from the date of issue and are backed
by the full faith and credit of the City.
Series 2008 Bond Issue — The City of Paducah issued general obligation bonds of $2,800,000 in March
2009, to finance the Floodwall Rehabilitation. Interest rates are variable. These bonds are required to be
fully paid within 20 years from the date of issue and are backed by the full faith and credit of the City.
Series 2010 Bond Issue — The City of Paducah issued general obligation Build America Bonds of
$6,645,000 in March 2010, to finance several public improvement projects. Interest rates range from
1.00% to 5.50%, with a Federal subsidy equal to 35% of the interest payments. These bonds are required
to be fully paid within 20 years from the date of issue and are backed by the full faith and credit of the
City.
Notes Payable
Kentucky League of Cities — On July 1, 2003, the City entered into an agreement in the amount of
$3,500,000 with the Kentucky League of Cities to finance the acquisition and installation of various public
capital projects. Interest is charged at a rate of approximately 2.98%. The note is required to be fully paid
within 20 years from the date of issue and is backed by the full faith and credit of the City.
(Continued)
-77-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 3 - Detail Notes on Transaction Classes/Accounts:
Long -Term Liabilities
Notes Payable
Kentucky Association of Counties — The County of McCracken, Kentucky entered into an agreement in
the amount of $5,000,000 in March 2009, with the Kentucky Association of Counties to assist with the
Julian Carroll Convention Center. Interest rate is variable. The note is required to be fully paid within 20
years from the date of issue and is backed jointly by the full faith and credit of the City and the County.
While the note is issued by the County, 50% of the principal amount of the note was issued on behalf of
the City which intends to participate on an equal basis with the County in accordance with an Interlocal
Cooperation Agreement between the City and McCracken County, Kentucky on February 23, 2009.
Kentucky Association of Counties — The County of McCracken, Kentucky entered into an agreement in
the amount of $250,000 in August 2004, with the Kentucky Association of Counties to assist the Paducah -
McCracken County Industrial Development Authority finance construction of the new speculative building
in Industrial Park West. Interest rate is 4.250%. This note is required to be fully paid within 5 years from
the date of issue and is backed jointly by the full faith and credit of the City and the County. While this
note is issued by the County, 50% of the principal amount of the note was issued on behalf of the City
which intends to participate on an equal basis with the County in accordance with an Interlocal
Cooperation Agreement between the City and McCracken County, Kentucky on June 1, 2004.
L. Wayne & Linda Lindsey greement — On December 18, 2009, the City entered into an agreement in the
amount of $600,000 with L. Wayne & Linda Lindsey to finance the acquisition of real property to be used
for the development of a sports park in the community. The note matures on December 19, 2010 and has
an annual interest rate of 2%.
Community Financial Services Bank — On February 6, 2009, the City entered into a multiple draw
agreement in the amount of $500,000 with Community Financial Service Bank (CFSB) to finance the
program activities of the Home Grant Fund. As of June 30, 2010, $273,003 had been drawn on this
agreement. Interest rate is 3.95%, fixed. The note matures on February 6, 2011.
Changes in Long -Term Liabilities
The following is a summary of changes in long-term debt for the year ended June 30, 2010:
Type of Liability:
Governmental activities:
General obligation bonds:
Convention and Arts Center
Infiniti Media Building
Pension
Floodwall Rehabilitation
Build America Bonds
Notes payable:
Kentucky League of Cities
Kentucky Association of Counties
CFSB
Lindsey Agreement
Accrued compensated absences
TOTAL GENERAL LONG-
TERM LIABILITIES
$26.849.142$'2 $33.306.354
-78-
(Continued)
Amounts
Beginning
Ending
Due within
Balance
Additions
Reductions
Balance
One Year
$ 7,320,000
$ -
$ 290,000
$ 7,030,000
$ 305,000
4,160,000
-
185,000
3,975,000
195,000
5,545,000
-
205,000
5,340,000
215,000
2,774,638
-
103,198
2,671,440
106,492
-
6,645,000
-
6,645,000
275,000
2,672,649
-
154,886
2,517,763
159,592
2,500,000
-
82,500
2,417,500
85,000
14,613
258,391
-
273,004
273,004
-
600,000*
-
600,000
600,000
1,862,242
783,001
808.596
1,836.647
975.982
$26.849.142$'2 $33.306.354
-78-
(Continued)
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 3 - Detail Notes on Transaction Classes/Accounts:
Long -Term Liabilities
Changes in Long -Term Liabilities
*Acquisition of land for the sports park was financed directly with the seller. This transaction did not
create or use current financial resources and, therefore, was not reported as another financing source on
the Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds.
Business -type activities:
Accrued compensated absences $ 91,783 44 1 $ 49.831
(1) The calculation to reconcile amounts in this schedule to the "net assets invested in capital assets, net of
related debt" for governmental activities is:
Net Capital Assets
Less:
19.75% of the outstanding 2001
general obligation bonds
Net of the County's portion
78% of the outstanding 2010
general obligation bonds
100% of the outstanding Kentucky League
of Cities' note payable
Net assets invested in capital assets, net of related debt
Annual Debt Service Requirements
$39,531,590
$(1,388,425)
694,212
(694,213)
(5,183,100)
(2,517,763)
31.136.514
The annual debt service requirements to maturity, excluding obligations associated with compensated
absences, for long-term debt as of June 30, 2010, are as follows:
Year Ending
.Tune 30
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
TOTALS
Accrued Compensated Absences
4,468,047 468,175 (116,995)
Compensated absence obligations arise from amounts due to City employees for vested amounts of
vacation pay and sick pay which will be payable in the future. Typically, the compensated absence
obligations have been paid by the General Fund, Emergency Communication Service Fund, Section Eight
Housing Fund, Solid Waste Fund and Fleet Maintenance Fund. Amounts accrued at June 30, 2010, are as
follows:
(Continued)
-79-
Federal
Interest
Principal
Interest
Subsidy
$ 2,214,088
$ 1,264,527
$ (92,061)
1,389,179
1,232,017
(95,102)
1,435,357
1,183,994
(93,684)
1,499,011
1,132,725
(91,759)
1,555,541
1,077,374
(89,554)
8,833,281
4,391,609
(395,248)
10,075,203
2,324,405
(274,628)
4,468,047 468,175 (116,995)
Compensated absence obligations arise from amounts due to City employees for vested amounts of
vacation pay and sick pay which will be payable in the future. Typically, the compensated absence
obligations have been paid by the General Fund, Emergency Communication Service Fund, Section Eight
Housing Fund, Solid Waste Fund and Fleet Maintenance Fund. Amounts accrued at June 30, 2010, are as
follows:
(Continued)
-79-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 3 - Detail Notes on Transaction Classes/Accounts:
Accrued Compensated Absences
Termination Benefits
Nine employees, through employment contracts, are entitled to certain termination benefits upon
involuntary termination of employment by the City Commission. These benefits include provision for
salary payments for three to six months, as well as, certain health, life, dental, and disability insurance
coverage for same period of time. As these benefits are only provided for involuntary termination of
employment, no provision has been made for these benefits. The City funds these benefits on a pay-as-
you-go basis in the period incurred. For the year ended June 30, 2010, $87,415 was paid for termination
benefits.
In addition, qualified participants in the County Employee's Retirement System (CERS), under certain
circumstances are eligible to convert accrued sick pay benefits into additional credit for years of service
upon retirement. Costs and notification of payment for these benefits are not calculated by the CERS
actuary until a qualified participant submits application for retirement benefits. Accordingly, no provision
has been made for these benefits and the City funds these benefits in the period of notification for payment
by the CERS. For the year ended June 30, 2010, payments of $13,326 were made for these benefits.
Landfill Closure and Post -Closure Costs
The County of McCracken, Kentucky (County) closed the local landfill to the public on June 30, 1995.
The County must comply with established state and federal landfill closure procedures and must perform
maintenance and monitoring procedures at the site for thirty years after closure. The 30 -year period will
begin upon approval from the Commonwealth of Kentucky regarding the environmental condition of the
landfill site. As of June 30, 2010, approval had not yet been granted. The County estimated post -closure
care costs totaling $4,125,000 or $125,000 per year plus 10% for inflation. Actual costs may be higher due
to inflation, changes in technology, or changes in regulations. In the year ending June 30, 2001, the City
entered into an inter -local agreement to share equally the costs for post -closure costs and, accordingly, has
recorded a long-term liability for 50% of the estimated closure expense. It is anticipated that post -closure
costs will be paid out of the Solid Waste Fund to the extent that funds are available with any excess costs
being funded using long-term borrowing.
(Continued)
03
Governmental
Business -type
Activities
Activities
Accrued sick leave
$ 696,424
$20,894
Accrued vacation leave
1,140,223
65,218
Totals
1,836,647
86,112
Less current portion
975,982
71,330
LONG-TERM PORTION
14
Termination Benefits
Nine employees, through employment contracts, are entitled to certain termination benefits upon
involuntary termination of employment by the City Commission. These benefits include provision for
salary payments for three to six months, as well as, certain health, life, dental, and disability insurance
coverage for same period of time. As these benefits are only provided for involuntary termination of
employment, no provision has been made for these benefits. The City funds these benefits on a pay-as-
you-go basis in the period incurred. For the year ended June 30, 2010, $87,415 was paid for termination
benefits.
In addition, qualified participants in the County Employee's Retirement System (CERS), under certain
circumstances are eligible to convert accrued sick pay benefits into additional credit for years of service
upon retirement. Costs and notification of payment for these benefits are not calculated by the CERS
actuary until a qualified participant submits application for retirement benefits. Accordingly, no provision
has been made for these benefits and the City funds these benefits in the period of notification for payment
by the CERS. For the year ended June 30, 2010, payments of $13,326 were made for these benefits.
Landfill Closure and Post -Closure Costs
The County of McCracken, Kentucky (County) closed the local landfill to the public on June 30, 1995.
The County must comply with established state and federal landfill closure procedures and must perform
maintenance and monitoring procedures at the site for thirty years after closure. The 30 -year period will
begin upon approval from the Commonwealth of Kentucky regarding the environmental condition of the
landfill site. As of June 30, 2010, approval had not yet been granted. The County estimated post -closure
care costs totaling $4,125,000 or $125,000 per year plus 10% for inflation. Actual costs may be higher due
to inflation, changes in technology, or changes in regulations. In the year ending June 30, 2001, the City
entered into an inter -local agreement to share equally the costs for post -closure costs and, accordingly, has
recorded a long-term liability for 50% of the estimated closure expense. It is anticipated that post -closure
costs will be paid out of the Solid Waste Fund to the extent that funds are available with any excess costs
being funded using long-term borrowing.
(Continued)
03
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 3 - Detail Notes on Transaction Classes/Accounts:
Interfund Transactions and Balances
Interfund transfers during the year ended June 30, 2010, were as follows:
Interfund
Transfers Out
$2,054,996
258,445
3,638,134
3,619,812
322,322
8,112
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.
Due To/From Balances
Due to/from balances used to cover current operating expenses were as follows as of June 30, 2010:
General Fund
Special Revenue Investment Fund
Nonmajor Governmental Funds
Nonmajor Proprietary Funds
Other Trusts
TOTALS
Note 4 - Pension Plans - City of Paducah:
Due From Due To
$ 145,839 $ 975,573
975,591 -
100,000
42,581
3,276
11214 1 214
The City provides retirement benefits to its employees through three pension funds. Two of these funds
are single -employer defined benefit funds and are administered by the City. These funds are Police and
Firefighters' Pension Fund (PFPF) and Appointive Employee' Pension Fund (AEPF). The other pension is
a multi-employer public employee retirement fund administered by the Kentucky County Employees
Retirement System (CERS). The City also participates in three deferred compensation plans. Information
regarding these plans follows:
Single Employer Defined Benefit Funds (Police and Firefighters' Pension Fund and Appointive
Employees Pension Fund)
Basis of Accounting — The financial statements are prepared using the accrual basis of accounting.
Plan member and employer contributions are recognized in the period in which the contributions are
due, pursuant to formal commitments. Benefits and refunds are recognized when due and payable in
accordance with the terms of each plan.
(Continued)
-81-
Interfund
Governmental Funds:
Transfers In
General Fund
$ 512,102
Capital Project Fund
6,095,916
Special Revenue Investment Fund
481,635
Special Revenue Bond Fund
-
Debt Service Fund
1,089,630
Nonmajor Governmental Funds
1,543,569
Internal Service Funds
28,984
Fiduciary Funds:
Other trusts
71,092
Proprietary Funds:
Nonmajor Proprietary Funds
78,893
TOTALS
1 21
Interfund
Transfers Out
$2,054,996
258,445
3,638,134
3,619,812
322,322
8,112
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.
Due To/From Balances
Due to/from balances used to cover current operating expenses were as follows as of June 30, 2010:
General Fund
Special Revenue Investment Fund
Nonmajor Governmental Funds
Nonmajor Proprietary Funds
Other Trusts
TOTALS
Note 4 - Pension Plans - City of Paducah:
Due From Due To
$ 145,839 $ 975,573
975,591 -
100,000
42,581
3,276
11214 1 214
The City provides retirement benefits to its employees through three pension funds. Two of these funds
are single -employer defined benefit funds and are administered by the City. These funds are Police and
Firefighters' Pension Fund (PFPF) and Appointive Employee' Pension Fund (AEPF). The other pension is
a multi-employer public employee retirement fund administered by the Kentucky County Employees
Retirement System (CERS). The City also participates in three deferred compensation plans. Information
regarding these plans follows:
Single Employer Defined Benefit Funds (Police and Firefighters' Pension Fund and Appointive
Employees Pension Fund)
Basis of Accounting — The financial statements are prepared using the accrual basis of accounting.
Plan member and employer contributions are recognized in the period in which the contributions are
due, pursuant to formal commitments. Benefits and refunds are recognized when due and payable in
accordance with the terms of each plan.
(Continued)
-81-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JLTNE 30, 2010
Note 4 - Pension Plans - City of Paducah:
Single Employer Defined Benefit Funds (Police and Firefighters' Pension Fund and Appointive
Employees Pension Fund)
Funding — The Appointive Employee's Pension Fund Board and the City of Paducah Police and
Firefighter's Pension Fund Board are responsible for establishing or amending contribution rates and
requirements for their respective plans.
Administrative Costs — Administrative costs are funded from investment earnings.
Valuation of Investments — Investments are reported at fair value. Investments are composed of
securities valued at current market prices.
Police and Firefighters' Pension Fund
Plan Description: PFPF is a single -employer defined benefit plan. On August 1, 1988, the plan was
closed to new entrants and current active duty police and firemen of the City were given a choice of
remaining in this plan or transferring into the CERS. Effective August 1, 1988, the PFPF covered 21
active duty members; all other active duty members elected coverage under CERS. PFPF provides
retirement, disability and death benefits to plan members and their beneficiaries. These benefits are
determined by Kentucky Revised Statutes (KRS) sections 95.851 to 95.884. PFPF does not issue a
separate, stand-alone report. Accordingly, the plan financial statements are included in this audit report.
Contributions: Plan members are required to contribute 8% of their annual covered salary. A member
reserve is established for member contributions, less amounts transferred to reserves for retirement and
disability and amounts refunded to terminated employees.
Funding: As of the most recent actuarial valuation dated July 1, 2010, the Plan had an unfunded
balance of $4,691,556. A schedule of the funded status and funding progress for the previous six years
can be found on page 92, which contains trend information about the changes in actuarial value of the
plan assets relative to the actuarially determined liability for benefits over time.
Components of annual pension cost for PFPF are as follows:
Component
Beginning NPO balance
ARC
Interest on NPO
Unfunded ARC adjustment
Pension cost
Less actual contribution
Net change in NPO
ENDING NPO BALANCE
PERCENTAGE OF PENSION
COST CONTRIBUTED
Year Ended Year Ended Year Ended
June 30, 2010
June 30, 2009
,Tune 30, 2008
$(5,551,753)
$(5,546,740)
$(5,552,551)
460,892
183,661
12,887
(444,140)
(443,739)
(444,204)
488,235
481,122
481,626
504,987
221,044
50,309
465,170
226,057
44,498
39,817
(5,013)
5,811
(5.511.936)(5.551.753) (5.546.740)
92% Q% 88%
(Continued)
-82-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 4 - Pension Plans - City of Paducah:
Police and Firefighters' Pension Fund
The financial statements for the Police and Firefighters' Pension Fund are as follows:
Statement of Fiduciary Net Assets
Police and Firefighters' Retirement Fund
June 30, 2010
Assets:
Cash and cash equivalents $ 5,439
Receivables 27,152
Investment at fair value 8,410,971
Total assets 8,443,562
Liabilities:
Voucher and accounts payable 266
Net Assets:
Held in trust for pension benefits and
other purposes 8.443.296
Statement of Changes in Net Assets
Police and Firefighters' Retirement Fund
For the Year Ended June 30, 2010
Additions:
Employer contributions $ 465,170
Plan members' contributions 5,075
Total contributions 470,245
Investment earnings:
Net increase in fair value of investments 880,537
Interest and dividends 250,249
Net investment earnings 1,130,786
Total additions 1,601,031
Deductions:
Benefits
1,755,944
Administrative expenses
49,310
Total deductions
1,805,254
Change in net assets
(204,223)
Net assets, July 1, 2009
8,647,519
NET ASSETS, JUNE 30, 2010
8.443.296
(Continued)
-83-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 4 - Pension Plans - City of Paducah:
Appointive Employees' Pension Fund
Plan Description: AEPF is a single -employer defined benefit plan which covers past appointed
employees of the City. In 1975, the City froze admission of new entrants into the plan. There are no
active participants in the plan at June 30, 2010. AEPF does not issue a separate, stand-alone report.
Accordingly, the plan financial statements are included in this audit report.
Contributions: Since there are only retired employees and beneficiaries receiving benefits, the City
expects little or no additional pension obligation. The City has pledged to maintain benefits and the
financial soundness of the plan by appropriations from the General Fund, as necessary.
Funding: As of the most recent actuarial valuation dated July 1, 2010, the Plan had an unfunded
balance of $116,539. A schedule of the funded status and funding progress for the previous six years
can be found on page 92, which contains trend information about the changes in actuarial value of the
plan assets relative to the actuarially determined liability for benefits over time.
Components of annual pension cost for AEPF are as follows:
Year Ended Year Ended Year Ended
Component ,Tune 30, 2010 .Tune 30, 2009 June 30, 2008
Beginning NPO balance $(227,510) $(250,893) $(278,827
ARC 17,095 6,278 8,925
Interest on NPO (13,651) (15,054) (16,730)
Unfunded ARC adjustment 29,162 32,159 35,739
Pension cost 32,606 23,383 27,934
Less actual contribution - - -
Net change in NPO 32,606 23,383 27,934
ENDING NPO BALANCE U194,M 22 (250.893)
PERCENTAGE OF PENSION
COST CONTRIBUTED __0%
The financial statements for the Appointive Employees' Pension Fund are as follows:
Statement of Fiduciary Net Assets
Appointive Employees' Pension Fund
June 30, 2010
Assets:
Cash and cash equivalents $ 53,241
Receivables 6
Investment at fair value 125,000
Total assets 178,247
Liabilities:
Voucher and accounts payable 2
Net Assets:
Held in trust for pension benefits and
other purposes 1 24
(Continued)
-84-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 4 - Pension Plans - City of Paducah:
Appointive Employees' Pension Fund
Statement of Changes in Net Assets
Appointive Employees' Pension Fund
For the Year Ended June 30, 2010
Additions:
Interest and dividends
$ 2,158
Employer contributions
-
Total additions
2,158
Deductions:
Benefits
43,242
Administrative expenses
6,687
Total deductions
49,929
Change in net assets
(47,771)
Net assets, July 1, 2009
226,016
NET ASSETS, JUNE 30, 2010 1 24
Single Employer Defined Benefit Funds (Police and Firefighters' Pension Fund and Appointive
Employees Pension Fund)
Contribution Information
A summary of actuarial assumptions at June 30, 2010, the date of the latest actuarial valuation is as
follows:
Valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return
Projected salary increases
Inflation rates adjustments
PFPF AEPF
7/1/10 7/1/10
Entry age normal Aggregate (1)
Level dollar closed Level dollar closed
23 Years
Market value
8.00%
4.00%
3.00%
10 Years
Market value
6.0%
(2)
(2)
(1) The Aggregate Method does not identify or separately amortize the unfunded actuarial
liabilities, information about funded status and funding progress is presented using the entry
age actuarial cost method for that purpose, and that information presented is intended to serve
as a surrogate for the funding progress of the plan.
(Continued)
-85-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 4 - Pension Plans - City of Paducah:
Single Employer Defined Benefit Funds (Police and Firefighters' Pension Fund and Appointive
Employees Pension Fund)
Contribution Information
(2) The plan has no active participants. The pension cost for each year is determined as an
amortization of the unfunded actuarial accrued liability over the lesser of 10 years or the
weighted average of expected term of payment of plan benefits.
Membership Information
Membership of each plan consisted of the following at June 30, 2010:
PFPF AEPF
Active participants
1
0
Beneficiaries
44
4
Retired participants
36
3
TOTAL PARTICIPANTS
811
3
Cost -Sharing Multiple -Employer Defined Benefit Plan
County Employees' Retirement System
Plan Description: The City is a participant in the County Employees Retirement System, (CERS), a
cost sharing, multi-employer public employee retirement system. CERS provides retirement, disability,
and death benefits to plan members. Retirement benefits may be extended to beneficiaries of plan
members under certain circumstances. Cost -of -living adjustments are provided at the discretion of the
State legislature. Under the provisions of Kentucky Revised Statute 61.645, the Board of Trustees of
Kentucky Retirement Systems administers the CERS. Kentucky Retirement Systems issues a publicly
available financial report that includes financial statements and required supplementary information for
CERS. That report may be obtained by writing to Kentucky Retirement Systems, Perimeter Park West,
1260 Louisville Road, Frankfort, Kentucky 40601-6124 or by calling 1-502-564-4646.
Funding Policy: Hazardous position employees are required to contribute 8% to the plan and
nonhazardous position employees are required to contribute 5% of their creditable compensation by
State statute. For employees hired on September 1, 2008, or thereafter, an additional I% must be
contributed to a health insurance account. The City is required by the same statute to contribute the
remaining amounts necessary to pay benefits when due. For the years ended June 30, 2010, 2009, and
2008, the City contributed 32.97%, 29.50%, and 33.87%, respectively, of each hazardous employee's
creditable compensation and 16.16%, 13.50%, and 16.17%, respectively, of each nonhazardous
employee's creditable compensation. These actuarially determined rates are set by the Board of
Trustees of Kentucky Retirement Systems. The City's contributions to CERS for the years ending June
30, 2010, 2009, and 2008, were $4,538,848, $4,198,042, and $4,533,944, respectively, equal to the
required contributions for each year.
Note 5 - Appropriations Deficit:
No departments that adopted budgets annually had excess expenditures over appropriations for the fiscal
year ended June 30, 2010.
(Continued)
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 6 - Component Unit Long -Term Liabilities:
Long-term liabilities of the discretely presented component units consists of the following at June 30,
2010:
Note Payable, Kentucky Infrastructure Authority (KIA) - Paducah Water Works
In connection with a merger with Reidland Water District, Paducah Water Works assumed a loan from the
KIA. Interest rates range from 1.59% to 5.19%, with a .2% annual service fee. The annual requirements
to amortize the outstanding debt as of June 30, 2010, are as follows:
Year Ending
.Tune 30
Principal
Interest
Fee 0.2%
Total
2011
$ 30,000
$ 4,521
$ 180
$ 34,701
2012
185,609
37,866
8,819
232,294
2013
187,621
34,744
8,357
230,722
2014
159,597
31,606
7,902
199,105
2015
161,598
30,006
7,501
199,105
2016-2020
838,899
125,301
31,325
995,525
2021-2025
892,830
82,156
20,539
995,525
2026-2030
950,227
36,238
9,060
995,525
2031
197,254
1,481
370
199,105
TOTALS
3.603.635
-94
4 1
Notes Payable, Kentucky Association of Counties (KACO) - Paducah Transit Authority
On February 13, 2004, the Transit Authority of the City of Paducah entered into an agreement with the
KACO in connection with grant match projects. Interest rate on this agreement is 4.07%. As of June 30,
2010, the outstanding balance was $104,286.
The following schedule summarizes the remaining debt service requirements for the Transit Authority of
the City of Paducah notes payable:
Total
Debt
Fiscal Year Principal Interest Service
2011 $ 32,415 $ 3,572 $ 35,987
2012 36,788 2,446 39,234
2013 35,083 854 35,937
TOTALS 1 2 $ 6 11
(Continued)
-87-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 7 - Commitments and Contingencies:
Grant Contingencies
Amounts received from grantor agencies are subject to audit and adjustment by grantor agencies,
principally the federal government. Any disallowed claims, including amounts already collected, may
constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed
by the grantor cannot be determined at this time although the government expects such amounts, if any, to
be immaterial.
Construction Commitments
The City has various on-going contracts for construction, renovations, paving materials, equipment, and
labor. As of June 30, 2010, the significant construction commitments were as follows:
Cumulative Estimated
Note 8 - Risk Management and Litigation:
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City obtains coverage from
commercial insurance companies to handle the risk of loss. There have been no decreases in insurance
coverage from the prior year. There have been no settlements in excess of insurance coverage during the
prior three years.
An analysis of claims activity is presented below:
Costs Incurred
Total Costs
Floodwall Survey Modification
$ 212,891
$ 213,700
Floodwall Restoration Survey
159,855
246,085
Floodwall Pipe Rehabilitation
1,863,312
1,863,312
Olivet Church Road Improvement Project
1,267,635
1,267,635
Riverfront Development - Phase 1
759,576
816,520
Riverfront - Other River Boat Launch Project
284,163
291,075
Greenway Trail Project
57,394
185,825
Pavilion Project
1,628,920
1,628,920
-
2 4Sfi,l13
Note 8 - Risk Management and Litigation:
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City obtains coverage from
commercial insurance companies to handle the risk of loss. There have been no decreases in insurance
coverage from the prior year. There have been no settlements in excess of insurance coverage during the
prior three years.
An analysis of claims activity is presented below:
During fiscal year 1999, the City established the Health Insurance Fund (an internal service fund) to
account for and finance employee medical costs relating to the City's employee self-insured medical
benefit plan that went into effect as of July 1, 1999. The health insurance provides coverage for up to
$150,000 for each covered individual. The City purchases commercial insurance (reinsurance) for claims
in excess of the coverage provided per individual or in excess of the maximum aggregate limit, which is
based on a formula that considers group census and anticipated claims. As of June 30, 2010, that number
was $2,745,465. Self-insurance costs are accrued based on claims reported within 90 days of the balance
sheet date as well as an estimated liability for claims incurred but not reported. The total accrued liability
for self-insurance costs was $228,648 at June 30, 2010.
(Continued)
-88-
Current Year
Beginning of
Claims and
Actual
Balance at
Fiscal Year
Changes in
Claim
Fiscal
Liability
Estimates
Payments
Year End
2007-2008 $ -
$69,572
$69,572
$ -
2008-2009 -
76,686
76,686
-
2009-2010 -
46,051
46,051
-
During fiscal year 1999, the City established the Health Insurance Fund (an internal service fund) to
account for and finance employee medical costs relating to the City's employee self-insured medical
benefit plan that went into effect as of July 1, 1999. The health insurance provides coverage for up to
$150,000 for each covered individual. The City purchases commercial insurance (reinsurance) for claims
in excess of the coverage provided per individual or in excess of the maximum aggregate limit, which is
based on a formula that considers group census and anticipated claims. As of June 30, 2010, that number
was $2,745,465. Self-insurance costs are accrued based on claims reported within 90 days of the balance
sheet date as well as an estimated liability for claims incurred but not reported. The total accrued liability
for self-insurance costs was $228,648 at June 30, 2010.
(Continued)
-88-
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 8 - Risk Management and Litigation:
The analysis of claims activity is presented below:
Current Year
Beginning of
Claims and
Fiscal Year
Changes in
Liability
Estimates
2007-2008 $386,326
$2,726,811
2008-2009 106,364
2,650,054
2009-2010 53,586
2,682,055
Actual
Balance at
Claim
Fiscal
Payments
Year End
$3,006,773
$106,364
2,702,832
53,586
2,506,993
228,648
During the fiscal year ended June 30, 2006, several current and former firefighters of the City of Paducah
filed a lawsuit for unpaid compensation benefits and related pension obligations. The range of possible
financial exposure for the City is zero to six million dollars. The City intends to vigorously defend the
case.
In addition, several lawsuits are pending involving citizens' complaints and the City of Paducah. Various
allegations have been made seeking damages which the legal counsel of the City, along with its
management, has determined to be immaterial to the City's financial position.
Note 9 - Lease Agreements:
Operating Leases
The City is leasing land and building to the Luther F. Carson Four Rivers Center for the Performing Arts
(Center) for a primary term of 99 years. No rental revenue is being collected from this lease. The rental
for the primary term of the lease is the construction of the performing arts center. The building is deemed
the property of the City; however, for financial reporting, the building is reported with the Luther F.
Carson Four Rivers Center financial records. In December 2003, with the authorization of the City, the
Center secured financing of $6.5 million subject to a mortgage against the leasehold and real property on
which the performing arts center is located. The City also consented to an assignment of the lease as
security for the loan.
The City also leases certain other property to various lessees under non -cancelable agreements that have
various expiration dates through June 30, 2011. Rental revenue received from leased property during 2010
totaled $495,565.
The following is an analysis of property leased under these leases at June 30, 2010:
Land $ 270,000
Buildings 873,250
Equipment 110,126
Total 1,253,376
Less: accumulated depreciation 796,515
NET BOOK VALUE 4 1
Depreciation expense for the year ended June 30, 2010, on leased property was $20,775.
(Continued)
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 9 - Lease Agreements:
Operating Leases
The following is a schedule of future minimum rental income from operating leases at June 30, 2010:
Lease
Income
2011 268,519
TOTAL MINIMUM LEASE RECEIPTS 2 1
Direct Financing Lease
The City is leasing land and a building to Infiniti Media, Incorporated for use by Infiniti Plastic
Technologies, Incorporated for a primary term of 20 years. No rental revenue was required during the first
three years of the lease term which resulted in a loss of $450,353. For the government -wide statement, the
loss is amortized over the life of the lease. Rental payments commenced on September 1, 2007, at a
monthly payment of $33,816 and end with the final payment due August 1, 2024. Infiniti Media may
purchase the property during the term of lease by paying off the related indebtedness. In addition, at the
end of the lease term, Infiniti Media may purchase the property for $1. Infiniti Media has the option to
cancel this lease at any time after the sixth year of the lease term by providing written notice 18 months
prior to the date of termination. The lease payments received coincide with debt service payments the City
is required to make on bonds maturing annually through year ending June 30, 2024.
Future minimum lease payments to be received under the lease agreement for the fiscal year ending June
30 are as follows:
Net minimum lease payments 5,681,140
Less amount representing interest (1,883,848)
PRESENT VALUE OF MINIMUM
LEASE PAYMENTS $ 3.797.292
Note 10 - Restatement of Net Assets:
As of June 30, 2009, the General Fund had a grant receivable from FEMA of $655,352 for claims
submitted in fiscal year 2009. Of these claims, $162,433 was recorded erroneously. The grant receivable
account for the General Fund was adjusted accordingly; the effect of this adjustment on fund balance and
net assets are as follows:
(Continued)
Lease
Income
2011
$ 405,796
2012
405,796
2013
405,796
2014
405,796
2015
405,796
2016 through 2024
3,652,160
Net minimum lease payments 5,681,140
Less amount representing interest (1,883,848)
PRESENT VALUE OF MINIMUM
LEASE PAYMENTS $ 3.797.292
Note 10 - Restatement of Net Assets:
As of June 30, 2009, the General Fund had a grant receivable from FEMA of $655,352 for claims
submitted in fiscal year 2009. Of these claims, $162,433 was recorded erroneously. The grant receivable
account for the General Fund was adjusted accordingly; the effect of this adjustment on fund balance and
net assets are as follows:
(Continued)
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2010
Note 10 - Restatement of Net Assets:
Governmental Funds:
General Fund
Governmental -Wide Statement:
Governmental Activities Funds
Note 11- Subsequent Events:
Net Assets
As Previously Net Assets
Reported Restatement As Restated
10.311.490 1 2 4 10.149.057
46.383.801 ICL62,431) 46.221.36a
In July 2010, the City issued bond series 2010B in the amount of $7,165,000. The bonds mature over 16
years starting June 1, 2011 and ending June 1, 2026; with optional redemption prior to maturity at any time
on or after June 1, 2020. The interest rates range from 1.00% to 3.25% depending on stated maturity date.
This issuance is intended to defease the City's portion of the 2001 bond issue.
-91-
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 309 2010
Exhibit A-1
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
PENSION TRUST FUNDS SCHEDULES
Schedules of Funding Progress
Actuarial
Actuarial
Unfunded
Annual
UAAL as a
Actuarial Value of
Accrued
AAL
Funded Covered
Percentage of
Valuation Assets
Liability (AAL)
(UAAL)
Ratio Payroll
Covered Payroll
Date (a)
(b)
(b -a)
(a/b) (c)
((b-a)/c)
Police and Firefighters' Pension Fund (PFPF) (Using Entry Age Normal Method)
7/1/2005
$ 9,150,861
$15,310,380
$6,159,519
59.8
$198,307
$ 3,106.05
7/1/2006
14,163,498
14,527,020
363,522
97.5
165,414
219.76
7/1/2007
14,470,016
14,463,785
(6,231)
100.0
100,986
(6.17)
7/1/2008
12,097,054
14,076,843
1,979,789
85.9
56,475
3,505.60
7/1/2009
8,647,519
13,476,007
4,828,488
64.2
55,475
8,641.74
7/1/2010
8,443,296
13,134,852
4,691,556
64.3
63,434
7,395.96
Appointive Employees' Pension Fund (AEPF) (Using Entry Age Actuarial Method)
7/1/2005
$ 328,888
$ 455,526
$ 126,638
72.2
n/a*
n/a*
7/1/2006
344,644
443,207
98,563
77.8
n/a*
n/a*
7/1/2007
317,575
382,916
65,341
82.9
n/a*
n/a*
7/1/2008
271,701
317,849
46,148
85.5
n/a*
n/a*
7/1/2009
226,016
306,287
80,271
73.8
n/a*
n/a*
7/1/2010
178,245
294,784
116,539
60.5
n/a*
n/a*
* There are no active participants.
Schedules of Employer Contributions
-92-
PFPF
Year
Annual
Percent
Ending
Ended
Required
ARC
Net Pension
June 30
Contribution (ARC)
Contributed
Obligation (NPO)
2005
$953,044
100
$ -
2006
719,348
854
(5,425,468)
2007
46,948
446
(5,552,551)
2008
12,887
345
(5,546,740)
2009
183,661
123
(5,551,753)
2010
460,892
109
(5,511,936)
AEPF
Year
Annual
Percent
Ending
Ended
Required
ARC
Net Pension
June 30
Contribution (ARC)
Contributed
Obligation (NPO)
2005
$ 26,328
285
$ (246,269)
2006
17,182
437
(287,297)
2007
13,883
180
(278,827)
2008
8,925
0
(250,893)
2009
6,278
0
(227,510)
2010
17,095
0
(194,904)
-92-
CITY OF PADUCAH, KENTUCKY
SUPPLEMENTARY INFORMATION
NONMAJOR GOVERNMENTAL FUNDS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 309 2010
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Municipal Aid Program - to account for revenues and expenditures of Kentucky gas tax refunds.
Emergency Communication Service Fund - to account for revenues associated with 911 program.
Court Awards Fund - to account for revenues associated with judicial system confiscations.
Federal, State, and Local Grants - to account for the grant programs awarded to the City of
Paducah from agencies of the Federal Government and the Commonwealth of Kentucky.
PRA - Paducah Renaissance Alliance, to account for the expenditures related to the economic
promotion of downtown Paducah, Kentucky.
CITY OF PADUCAH, KENTUCKY
GENERAL CAPITAL IIVIPROVEMBNTS
DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2010
Revenues:
Grants
Interest
Miscellaneous
Total revenues
Expenditures:
Capital outlay
Excess (deficiency) of revenues over
expenditures
Other Financing Sources (Uses):
Long-term debt issued
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance, July 1, 2009
FUND BALANCE, JUNE 30, 2010
See auditors report on pages 12-13.
-93-
Final
Budget
1,112,165
14,040
670,295
1,796,500
8,324,335
Actual
1,112,184
14,043
670,302
1,796,529
Q'27,,'21e)
(6,527,835) (6,527,783)
1,176,865
6,095,905
(258,450)
7,014,320
$ 486,485
1,176,866
6,095,916
(258,445)
7,014,337
486,554
1 '7n C '7K4
$ 2,232,320
Exhibit B-1
Variance with
Final Budget
Positive
(Negative)
19
3
7
29
23
52
1
11
5
17
$ 69
CITY OF PADUCAH, KENTUCKY
DEBT SERVICE FUND
DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2010
Revenues:
Intergovernmental
Expenditures:
Principal requirement
Interest and fiscal requirement
Total expenditures
Excess (deficiency) of revenues over
expenditures
Other Financing Sources (Uses):
Capital lease
Operating transfers in
Total other financing sources (uses)
Net change in fund balance
Fund balance, July 1, 2009
FUND BALANCE, JUNE 30, 2010
See auditors report on pages 12-13.
-94-
Exhibit B-2
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
$ 601,480 601,487 $ 7
1,020,593
1,020,585
8
1,077,132
1,077,128
4
2,097,725
2,097,713
12
(1,496,245)
(1,496,226)
19
405,790
405,796
6
1,089,630
1,089,630
-
1,495,420
1,495,426
6
$ (825)
(800)
$ 25
93,244
$ 92,444
Exhibit B-3
CITY OF PADUCAH, KENTUCKY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
ASSETS
Cash and cash equivalents
Investments
Receivables, net:
Accounts
Grants
Interest
TOTAL ASSETS
LIABILITIES
AND
FUND BALANCES
Liabilities:
Voucher and accounts payable
Accrued payroll and payroll taxes
Due to other funds
Accrued compensated absences
Total liabilities
Fund Balances:
Reserved for:
Unreserved
Total fund balances
TOTAL LIABILITIES AND
FUND BALANCES
See auditors report on pages 12-13.
Special Revenue Funds
30,319 118,360 - -
- - 516 -
$575,449 $569,530 $105,305 $ -
$138,820
Emergency
Court Small
Municipal
Communication
Awards Grant
Aid Program
Service Fund
Fund Fund
545,130
$451,170
$ 54,789 $ -
-
-
50,000 -
30,319 118,360 - -
- - 516 -
$575,449 $569,530 $105,305 $ -
$138,820
$ 17,075
$ 72,221 $ -
-
38,207
- -
138,820
55,282
72,221 -
436,629
514,248
33,084 -
436,629
514,248
33,084 -
$575,449
$569,530
$105,305 $ -
-95-
$12,266 $ 5,284
12,266 5,284
175,403
175,403
$ - $ 12,589 $ 258,255
- 38,207
100,000 100,000
783 783
113,372 397,245
150,923
150,923
$12,266 $180,687 $ - $264,295
.E
1,310,287
1,310,287
$1,707,532
Special Revenue Funds
CDBG
Home
HUD
Total Nonmajor
Grant
Grant
Revolving
PRA
Governmental
Fund
Fund
Grant Fund
Fund
Funds
—T--
$148,080
$ -
107,409
$1,306,578
-
-
-
100,778
150,778
-
-
-
56,108
204,787
12,266
32,607
-
-
44,873
-
-
-
-
516
$12,266
$180,687
$ -
$264,295
$1,707,532
$12,266 $ 5,284
12,266 5,284
175,403
175,403
$ - $ 12,589 $ 258,255
- 38,207
100,000 100,000
783 783
113,372 397,245
150,923
150,923
$12,266 $180,687 $ - $264,295
.E
1,310,287
1,310,287
$1,707,532
Exhibit B-4
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Revenues:
Taxes
Charges for services
Intergovernmental
Grants
Interest
Miscellaneous
Total revenues
Expenditures:
Current operations:
Public safety
Public service
Planning and development
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other Financing Sources (Uses):
Capital lease
Long-term debt issued
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, July 1, 2009
FUND BALANCES, JUNE 30, 2010
See auditors report on pages 12-13.
Special Revenue Funds
492,123 1,056,648 49,919 30,000
- 1,391,970 32,011 -
1,347,516 - - -
- - - 199,375
1,347,516 1,391,970 32,011 199,375
(855,393)
Emergency
Court
Small
Municipal
Communication
Awards
Grant
Aid Program
Service Fund
Fund
Fund
$ -
511,595
-T
$ -
-
263,109
-
-
489,837
-
-
-
2,286
3,210
918
-
-
278,734
49,001
30,000
492,123 1,056,648 49,919 30,000
- 1,391,970 32,011 -
1,347,516 - - -
- - - 199,375
1,347,516 1,391,970 32,011 199,375
(855,393)
(335,322)
17,908
(169,375)
857,278
335,322
-
-
-
-
-
(99,505)
857,278
335,322
-
(99,505)
1,885
-
17,908
(268,880)
434,744
514,248
15,176
268,880
$ 436,629
$ 514,248
$33,084
$ -
-97-
- - - - 1,423,981
- - - - 1,347,516
28,933 527,798 11,181 305,983 1,073,270
28,933 527,798 11,181 305,983 3,844,767
- (109,743)
Special Revenue Funds
(248,062)
(1,710,654)
CDBG
Home
HUD
258,391
Total Nonmajor
Grant
Grant
Revolving
PRA
Governmental
Fund
Fund
Grant Fund
Fund
Funds
$ -
$
$ - $
-
$ 511,595
-
-
-
-
263,109
-
-
-
-
489,837
28,933
185,200
-
-
214,133
-
-
514
1,440
8,368
-
232,855
-
56,481
647,071
28,933
418,055
514
57,921
2,134,113
- - - - 1,423,981
- - - - 1,347,516
28,933 527,798 11,181 305,983 1,073,270
28,933 527,798 11,181 305,983 3,844,767
- (109,743)
(10,667)
(248,062)
(1,710,654)
- 258,391
-
-
258,391
- -
-
350,969
1,543,569
- -
(199,815)
(23,002)
(322,322)
- 258,391
(199,815)
327,967
1,479,638
- 148,648
(210,482)
79,905
(231,016)
- 26,755
210,482
71,018
1,541,303
$ - $ 175,403
$ -
$ 150,923
$1,310,287
CITY OF PADUCAH, KENTUCKY
MUNICIPAL AID PROGRAM FUND
DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2010
Revenues:
Intergovernmental
Interest
Total revenues
Expenditures:
Public service
Excess (deficiency) of revenues over
expenditures
Other Financing Sources (Uses):
Operating transfers in
Net change in fund balance
Fund balance, July 1, 2009
FUND BALANCE, JLTNE 30, 2010
See auditors report on pages 12-13.
Exhibit B-5
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
489,835 489,837 2
492,120 492,123
1,347,516 1,347,516
(855,396)
857,275
$ 1,879
(855,393)
1,885
434,744
$ 436,629
3
3
3
$ 6
CITY OF PADUCAH, KENTUCKY
EMERGENCY COMMUNICATION SERVICE FUND
DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2010
Revenues:
Taxes
Telephone surcharges
Interest
Miscellaneous
Total revenues
Expenditures:
Public safety
Excess (deficiency) of revenues over
expenditures
Other Financing Sources (Uses):
Operating transfers in
Net change in fund balance
Fund balance, July 1, 2009
FUND BALANCE, JUNE 30, 2010
See auditors report on pages 12-13.
-100-
Exhibit B-6
(335,380)
335,320
$ (60)
(335,322) 58
335,322
514,248
$ 514,248
2
$ 60
Variance with
Final Budget
Final
Positive
Budget
Actual
(Negative)
$ 511,595
511,595
$ -
263,105
263,109
4
3,205
3,210
5
278,730
278,734
4
1,056,635
1,056,648
13
1,392,015
1,391,970
45
(335,380)
335,320
$ (60)
(335,322) 58
335,322
514,248
$ 514,248
2
$ 60
CITY OF PADUCAH, KENTUCKY
COURT AWARDS FUND
DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2010
Revenues:
Court awarded forfeitures
Interest
Total revenues
Expenditures:
Public safety
Excess (deficiency) of revenues over
expenditures
Fund balance, July 1, 2009
FUND BALANCE, JUNE 30, 2010
See auditors report on pages 12-13.
-101-
Final
Budget
Actual
$ 49,420
$49,001
485
918
49,905
49,919
32,015
32,011
$ 17,890
17,908
15,176
$33,084
Exhibit B-7
Variance with
Final Budget
Positive
(Negative)
(419)
433
14
4
$ 18
CITY OF PADUCAH, KENTUCKY
SMALL GRANT FUND
DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2010
Revenues:
Grants
Interest
Other
Total revenues
Expenditures:
Planning and development
Excess (deficiency) of revenues over
expenditures
Other Financing Sources (Uses):
Operating transfers out
Net change in fund balance
Fund balance, July 1, 2009
FUND BALANCE, JUNE 30, 2010
See auditors report on pages 12-13.
-102-
Exhibit B-8
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
30,000 30,000 -
30,000
30,000 -
199,380
199,375 5
(169,380)
(169,375) 5
(99,510) (99,505) 5
$ (268,890) (268,880) $ 10
268,880
CITY OF PADUCAH, KENTUCKY
CDBG GRANT FUND
DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2010
Revenues:
Grants
Miscellaneous
Total revenues
Expenditures:
Planning and development
Excess (deficiency) of revenues over
expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance, July 1, 2009
FUND BALANCE, JUNE 30, 2010
See auditors report on pages 12-13.
-103-
Exhibit B-9
Variance with
Final Budget
Final
Positive
Budget
Actual
(Negative)
$28,930
$28,933
$ 3
28,930
28,933
3
28,935
28,933
2
(5)
-
5
CITY OF PADUCAH, KENTUCKY
HOME GRANT FUND
DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2010
Revenues:
Grants
Miscellaneous
Total revenues
Expenditures:
Planning and development
Excess (deficiency) of revenues over
expenditures
Other Financing Sources (Uses):
Long-term debt issued
Operating transfers in
Total other financing sources (uses)
Net change in fund balance
Fund balance, July 1, 2009
FUND BALANCE, JUNE 30, 2010
See auditors report on pages 12-13.
13
Exhibit B-10
418,055 418,055 -
527,800 527,798 2
(109,745)
Variance with
258,390
Final Budget
Final
Positive
Budget Actual
(Negative)
$ 185,200 $ 185,200
-
232,855 232,855
-
418,055 418,055 -
527,800 527,798 2
(109,745)
(109,743) 2
258,390
258,391 1
258,390
258,391 1
$ 148,645
148,648 $ 3
26,755
$ 175,403
CITY OF PADUCAH, KENTUCKY
HUD REVOLVING GRANT FUND
DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2010
Revenues:
Interest
Other
Total revenues
Expenditures:
Planning and development
Excess (deficiency) of revenues over
expenditures
Other Financing Sources (Uses):
Operating transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance, July 1, 2009
FUND BALANCE, JUNE 30, 2010
See auditors report on pages 12-13.
-105-
Exhibit B-11
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
510 514 $ 4
510 514 4
11,185 11,181 4
(10,675) (10,667) 8
(199,820) (199,815) 5
(199,820) (199,815) 5
$ (210,495) (210,482) $ 13
nin Aon
Revenues:
Interest
Other
Total revenues
Exhibit B-12
CITY OF PADUCAH, KENTUCKY
PRA FUND
DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2010
Variance with
Final Budget
Final
Positive
Budget
Actual
(Negative)
1,430
1,440
10
56,475
56,481
6
57,905
57,921
16
Expenditures:
Planning and development
Excess (deficiency) of revenues over
expenditures
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance, July 1, 2009
FUND BALANCE, JUNE 30, 2010
See auditors report on pages 12-13.
-106-
306,030 305,983
(248,125) (248,062)
350,965
(23,000)
"', "'r -'r
$ 79,840
350,969
(23,002)
'Ince nc7
79,905
71,018
$ 150,923
47
63
CITY OF PADUCAH, KENTUCKY
SUPPLEMENTARY INFORMATION
NONMAJOR PROPRIETARY FUNDS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 309 2010
COMBINING FINANCIAL STATEMENTS
NONMAJOR ENTERPRISE FUNDS
Section Eight Housing Fund - to account for the housing choice voucher program grant governed
by the United States Department of Housing and Urban Development.
Civic Center Fund — to account for the operation of the Civic Center.
TISA Fund — to account for revenues and expenses associated with the operation of the Paducah -
McCracken County telecommunications and information systems.
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2010
ASSETS
Current Assets:
Cash and cash equivalents
Accounts receivable
Grants receivable
Prepaid expense
Total current assets
Noncurrent Assets:
Net depreciable capital assets
Total assets
LIABILITIES
Current Liabilities:
Voucher and accounts payable
Accrued compensated absences
Due to other funds
Total current liabilities
Noncurrent Liabilities:
Accrued compensated absences
Total liabilities
NET ASSETS
Invested in capital assets
Restricted for:
Housing and development projects
Unrestricted
TOTAL NET ASSETS
See auditors report on pages 12-13.
Exhibit C-1
Section
Civic
1,642 - -
Total Nonmajor
Eight
Center
TISA
Enterprise
Housing
Fund
Fund
Funds
$772,693
$
$297,465
$1,070,158
-
-
4,198
4,198
-
-
6,482
6,482
772,693
-
308,145
1,080,838
22,739
190,224
75,381
288,344
795,432
190,224
383,526
1,369,182
92,888 5,676 6,577
105,141
1,642 - -
1,642
42,581 - -
42,581
137,111 5,676 6,577
149,364
14,782 - -
14,782
151,893 5,676 6,577
164,146
22,739 190,224 75,381 288,344
620,800 - - 620,800
- (5,676) 301,568 295,892
$643,539 $184,548 $376,949 $1,205,036
-107-
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Operating Revenues:
Charges for services
Miscellaneous
Total operating revenues
Operating Expenses:
Cost of sales and service
Depreciation and amortization
Total operating expenses
Operating income (loss)
Non -Operating Revenues (Expenses):
Interest and investment income
Income (loss) before contributions and
operating transfers
Contributions and Operating Transfers:
Capital contributions
Transfers in
Transfers out
Total contributions and operating transfers
Change in net assets
Net assets, July 1, 2009
NET ASSETS, JUNE 30, 2010
See auditors report on pages 12-13.
Exhibit C-2
Section
Civic
Total Nonmajor
Eight
Center TISA
Enterprise
Housing
Fund Fund
Funds
$2,311,753
32,455 $148,158
$2,492,366
1 515
_ _
1 515
2,313,268 32,455 148,158
2,054,170
59,059
184,729
7,200
10,495
22,069
2,061,370
69,554
206,798
251,898
(37,099)
(58,640)
252,178 (37,099) (58,640)
2,297,958
39,764
2,337,722
156,159
- -
17,047
17,047
- 22,726
56,167
78,893
- 22,726
73,214
95,940
252,178 (14,373)
14,574
252,379
391,361 198,921
362,375
952,657
$ 643,539 $184,548
$376,949
$1,205,036
-108-
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Cash Flows from Operating Activities:
Cash received from customers
Payments to employees
Payments to internal service funds
Other receipts
Other payments
Net cash provided (used) by operating activities
Cash Flows from Noncapital
Financing Activities:
Transfers (to) from other funds
Cash Flows from Capital and Related
Financing Activities:
Capital contributions
Acquisition and construction
of capital assets
Net cash used by capital and
related financing activities
Cash Flows from Investing Activities:
Interest on cash and investments
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents, July 1, 2009
CASH AND CASH EQUIVALENTS,
JUNE 30, 2010
Reconciliation of Operating Income (Loss) to
Net Cash Provided by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation and amortization
Change in assets and liabilities:
Receivables
Prepaid expense
Accrued expenses
Accounts payable
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
See auditors report on pages 12-13.
Exhibit C-3
Section
Civic
Total Nonmajor
Eight
Center
TISA
Enterprise
Housing
Fund
Fund
Funds
$ 2,314,431
$ 32,455
$ 161,447
$ 2,508,333
(123,998)
-
-
(123,998)
-
(2,709)
(1,559)
(4,268)
1,515
-
-
1,515
(1,899,698)
(56,313)
(156,304)
(2,112,315)
292,250
(26,567)
3,584
269,267
17,119
22,726
56,167
96,012
17,047 17,047
(7,946) - (65,190) (73,136)
(7,946) - (48,143) (56,089)
1) Rn - - 1) SM
301,703 (3,841) 11,608 309,470
470,990 3,841 285,857 760,688
$ 772,693 $ - $ 297,465 $ 1,070,158
$ 251,898 $ (37,099) $ (58,640) $ 156,159
7,200 10,495 22,069 39,764
2,678 - 13,289 15,967
- - 21,230 21,230
912 - - 912
29,562 37 5,636 35,235
$ 292,250 $ (26,567) $ 3,584 $ 269,267
-109-
CITY OF PADUCAH, KENTUCKY
SUPPLEMENTARY INFORMATION
INTERNAL SERVICE FUNDS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 309 2010
COMBINING FINANCIAL STATEMENTS
INTERNAL SERVICE FUNDS
Fleet Maintenance — to account for costs of operating a maintenance facility for automotive
equipment used by other City departments.
Fleet Lease Trust — to account for the financing of vehicle acquisitions provided by one
department or agency to other departments or agencies of the government and to other
governmental units, on a cost reimbursement basis.
Insurance Fund — to account for the costs of obtaining insurance for other City departments.
Health Insurance Fund — to account for the costs associated with the City's health insurance
activities. The intent of the City of Paducah is that the cost of providing insurance coverage on a
continuing basis be financed primarily through user charges.
ASSETS
Current Assets:
Cash and cash equivalents
Investments
Receivables, net
Prepaid expense
Inventories
Total current assets
Noncurrent Assets:
Net depreciable capital assets
Total assets
LIABILITIES
Current Liabilities:
Voucher and accounts payable
Accrued payroll and payroll taxes
Accrued compensated absences
Due to other funds
Total current liabilities
Noncurrent Liabilities:
Accrued compensated absences
Total liabilities
NET ASSETS
Invested in capital assets, net
of related debt
Unrestricted
TOTAL NET ASSETS
See auditors report on pages 12-13.
Exhibit D -I
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2010
12,419
15,260 34,600 247,388 309,667
14,030
Health
26,449
Fleet
Fleet Lease
Insurance
Insurance
Combined
Maintenance
Trust
Fund
Fund
Total
718,851
$2,349,724
$307,653
$451,331
$3,127,559
-
1,250,000
-
-
1,250,000
-
7,763
17,633
5,378
30,774
-
-
-
15,000
15,000
70,966
-
-
-
70,966
89,817
3,607,487
325,286
471,709
4,494,299
29,500
2,632,381
-
-
2,661,881
119,317
6,239,868
325,286
471,709
7,156,180
12,419
15,260 34,600 247,388 309,667
14,030
- - - 14,030
26,449
15,260 34,600 247,388 323,697
36,529
- - - 36,529
62,978
15,260 34,600 247,388 360,226
29,500 2,632,381 - - 2,661,881
26,839 3,592,227 290,686 224,321 4,134,073
$56,339 $6,224,608 $290,686 $224,321 $6,795,954
-110-
Exhibit D-2
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Operating Expenses:
Vehicle maintenance
566,549
-
-
Health
566,549
Administrative
Fleet
Fleet Lease
Insurance
Insurance
Combined
Operating Revenues:
Maintenance
Trust
Fund
Fund
Total
Charges for services - internal
$ 389,473
$ 766,962
$1,139,338
$3,355,772
$5,651,545
Charges for services - external
-
-
-
245,589
245,589
Total operating revenues
389,473
766,962
1,139,338
3,601,361
5,897,134
Operating Expenses:
Vehicle maintenance
566,549
-
-
-
566,549
Administrative
-
6,901
-
318,971
325,872
Insurance
-
-
1,002,050
3,335,603
4,337,653
Leave expense
3,166
-
-
-
3,166
Depreciation
10,264
503,550
-
-
513,814
Total operating expenses
579,979
510,451
1,002,050
3,654,574
5,747,054
Operating income (loss)
(190,506)
256,511
137,288
(53,213)
150,080
Nonoperating Revenues and
(Expenses):
Interest and investment income
334
50,634
-
-
50,968
Gain (loss) on disposal of property
and equipment
4,918
59,702
-
64,620
Total nonoperating revenues
(expenses)
5,252
110,336
-
-
115,588
Income (loss) before operating
transfers
(185,254)
366,847
137,288
(53,213)
265,668
Contributions and Operating
Transfers:
Transfers in
-
20,000
8,984
28,984
Change in net assets
(185,254)
386,847
146,272
(53,213)
294,652
Net assets, July 1, 2009
241,593
5,837,761
144,414
277,534
6,501,302
NET ASSETS, JUNE 30, 2010
$ 56,339
$6,224,608
$ 290,686
$ 224,321
$6,795,954
See auditors report on pages 12-13.
-111-
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Cash Flows from Operating Activities:
Receipts from other funds for services
Payments to suppliers
Payments to employees
Claims paid
Other receipts
Other payments
Net cash provided (used) by
operating activities
Cash Flows from Noncapital Financing
Activities:
Transfers from other funds
Cash Flows from Capital and Related
Financing Activities:
Purchase of capital assets
Proceeds from sale of capital assets
Net cash used by capital and related financing
Cash Flows from Investing Activities:
Proceeds from sales and maturities
of investments
Interest and dividends
Purchase of investments
Net cash provided (used) by investing activities
Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents, July 1, 2009
CASH AND CASH EQUIVALENTS,
JUNE 30, 2010
Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating
Activities:
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash provided
(used) by operating activities:
Depreciation and amortization
Change in assets and liabilities:
Receivables
Prepaid expense
Inventories
Due to other funds
Accrued expenses
Accounts payable
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
See auditors report on pages 12-13.
Exhibit D-3
(3,100,439) (3,100,439)
-
Health
(858,113)
Fleet Fleet Lease
Insurance Insurance
Combined
Maintenance Trust
Fund Fund
Total
389,473 $ 827,409
$1,156,755 $3,598,132
$5,971,769
(275,479)
- -
(275,479)
(278,107) -
- -
(278,107)
(3,100,439) (3,100,439)
-
306,077
(858,113)
(318,971)
(871,007)
-
60,447
17,417
(3,229)
(164,113)
1,133,486
298,642
178,722
1,446,737
1,266,647
2,639
-
-
-
20,000
8,984
-
28,984
-
(801,000)
7,379
-
-
(1,267,823)
-
-
(1,267,823)
4,918
90,513
-
-
95,431
4,918
(1,177,310)
-
-
(1,172,392)
-
4,300,000
-
-
4,300,000
334
50,634
-
-
50,968
-
(2,350,000)
-
-
(2,350,000)
334
2,000,634
-
-
2,000,968
(158,861)
1,976,810
307,626
178,722
2,304,297
177,712
372,914
27
272,609
823,262
$ 18,851
$ 2,349,724
$ 307,653
$ 451,331
$ 3,127,559
$ (190,506) $ 256,511 $ 137,288 $ (53,213) $ 150,080
10,264
503,550
-
-
513,814
-
60,447
17,417
(3,229)
74,635
-
297,907
927,377
41,363
1,266,647
2,639
-
-
-
2,639
-
-
(801,000)
-
(801,000)
7,379
-
-
-
7,379
6,111
15,071
17,560
193,801
232,543
$(164,113)
$ 1,133,486
$ 298,642
$ 178,722
$ 1,446,737
-112-
CITY OF PADUCAH, KENTUCKY
SUPPLEMENTARY INFORMATION
FIDUCIARY FUNDS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 309 2010
COMBINING FINANCIAL STATEMENTS
FIDUCIARY FUNDS
Pension Trust Funds
Police and Firefighters' Retirement Fund and Appointive Employees' Pension Fund — to account
for the accumulation of resources to be used for retirement payments at appropriate amounts and
times in the future. Resources are contributed by employees and by the City at amounts
determined by Kentucky Statutes and/or City Commission decisions.
Exhibit E-1
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS - PENSION TRUST FUNDS
JUNE 30, 2010
LIABILITIES
Voucher and accounts payable 266 2 268
NET ASSETS
Held in trust for pension benefits and
other purposes $8,443,296 $178,245 $8,621,541
See auditors report on pages 12-13.
-113-
Police and
Appointive
ASSETS
Firefighters'
Employees'
Retirement Fund
Pension Fund
Total
Cash and cash equivalents
$ 5,439
$ 53,241
$ 58,680
Receivables:
Interest
27,152
6
27,158
Investments at fair value
Money market funds
230,787
-
230,787
Certificates of deposit
-
125,000
125,000
Common stock
1,358,418
-
1,358,418
Corporate bonds
365,209
-
365,209
U.S. agencies bonds
1,251,053
-
1,251,053
Mortgage backed securities
-
-
-
Mutual funds
5,205,504
-
5,205,504
Total assets
8,443,562
178,247
8,621,809
LIABILITIES
Voucher and accounts payable 266 2 268
NET ASSETS
Held in trust for pension benefits and
other purposes $8,443,296 $178,245 $8,621,541
See auditors report on pages 12-13.
-113-
Exhibit E-2
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF CHANGES IN NET ASSETS
FIDUCIARY FUNDS - PENSION TRUST FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
See auditors report on pages 12-13.
-114-
Police and
Appointive
Firefighters'
Employees'
Additions:
Retirement Fund
Pension Fund
Totals
Contributions:
Employer
$ 465,170
$ -
$ 465,170
Plan members
5,075
-
5,075
Total contributions
470,245
-
470,245
Investment earnings:
Net increase in fair value of investments
880,537
-
880,537
Interest and dividends
250,249
2,158
252,407
Net investment earnings
1,130,786
2,158
1,132,944
Total additions
1,601,031
2,158
1,603,189
Deductions:
Benefits
1,755,944
43,242
1,799,186
Administrative expenses
49,310
6,687
55,997
Total deductions
1,805,254
49,929
1,855,183
Change in net assets
(204,223)
(47,771)
(251,994)
Net assets, July 1, 2009
8,647,519
226,016
8,873,535
NET ASSETS, JUNE 30, 2010
$8,443,296
$178,245
$8,621,541
See auditors report on pages 12-13.
-114-
COMBINING FINANCIAL STATEMENTS
FIDUCIARY FUNDS
Private -purpose Trust Funds
Other Trusts and Maintenance and Rehab Trust - to account for assets held by the City in the
capacity of trustee for specified purposes.
Exhibit E-3
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF NET ASSETS
FIDUCIARY FUNDS - PRIVATE -PURPOSE TRUST FUNDS
JUNE 30, 2010
ASSETS
Cash and cash equivalents
Accounts receivable
Investments at fair value
Mutual funds
Total assets
LIABILITIES
Due to other funds
NET ASSETS
Held in trust for other purposes
See auditors report on pages 12-13.
-115-
Maintenance
Other and Rehab
Trusts Trust Total
85,454 276 85,730
- 3,000 3,000
923,604 - 923,604
1,009,058 3,276 1,012,334
3,276 3,276
$1,009,058 $ - $1,009,058
Exhibit E-4
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF CHANGES IN NET ASSETS
FIDUCIARY FUNDS - PRIVATE -PURPOSE TRUST FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Additions:
Contributions:
Intergovernmental revenues
Private donations
Total contributions
Investment earnings:
Net increase in fair value of investments
Loss on sale of investments
Interest and dividends
Net investment earnings
Total additions
Deductions:
Capital outlay
Administrative expenses
Transfers:
Interfund transfers in
Interfund transfers out
Total deductions
Change in net assets
Net assets, July 1, 2009
NET ASSETS, JUNE 30, 2010
See auditors report on pages 12-13.
-116-
Maintenance
Other
and Rehab
Trusts
Trust
Totals
$ 2,725
$ 8,000
$ 10,725
10,000
-
10,000
12,725
8,000
20,725
80,246
-
80,246
(5,898)
-
(5,898)
18,843
-
18,843
93,191
-
93,191
105,916
8,000
113,916
-
893
893
9,558
4,352
13,910
(71,092)
(71,092)
-
8,112
8,112
(61,534)
13,357
(48,177)
167,450
(5,357)
162,093
841,608
5,357
846,965
$1,009,058
$ -
$1,009,058
COMBINING FINANCIAL STATEMENTS
FIDUCIARY FUNDS
Agency Fund
Payroll Agency Fund — to account for disbursements relative to the City payroll. The various
City departments transfer amounts to this fund to cover routine payroll and the related benefits
and taxes. All payroll disbursements are made from this fund.
Payroll Fund:
Assets:
Cash and cash equivalents
Liabilities:
Payroll taxes and withholdings
payable
See auditors report on pages 12-13.
CITY OF PADUCAH, KENTUCKY
AGENCY FUND
STATEMENT OF CHANGES
IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED JUNE 30, 2010
Balance
July 1, 2009 Additions Deductions
$427,615
$427,615
-117-
$13,227,774 $13,544,054
$13,227,774 $13,544,054
Exhibit E-5
Balance
June 30, 2010
$111,335
$111,335
CITY OF PADUCAH, KENTUCKY
STATISTICAL SECTION
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 309 2010
STATISTICAL SECTION
This part of the City of Paducah's comprehensive annual financial report presents
detailed information as a context for understanding what the information in the
financial statements, note disclosures, and required supplementary information say
about the City's overall financial health.
Contents Page
Financial Trends 118-123
These schedules contain trend information to help the reader understand how the
City's financial performance and well-being changed over time.
Revenue Capacity 124-129
These schedules contain information to help the reader assess the factors
affecting the City's ability to generate its property and employee taxes.
Debt Capacity 130-133
These schedules present information to help the reader assess the affordability of
the City's current levels of outstanding debt and the City's ability to issue
additional debt in the future.
Economic and Demographic Information 134-136
These schedules offer economic and demographic indicators to help the reader
understand the environment within which the City's financial activities take
place.
Operating Information 137-138
These schedules contain service and infrastructure data to help the reader
understand how the information in the City's financial report relates to the
services the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from
the comprehensive annual financial reports for the relevant year. The City
implemented the new reporting model in the fiscal year ended June 30, 2003.
Schedules presenting government -wide information include information beginning in
that year.
Governmental Activities:
Invested in capital assets, net of related debt
Restricted for:
Program purposes
Capital projects
Unrestricted
TOTAL GOVERNMENTAL ACTIVITIES
NET ASSETS
Business -Type Activities:
Invested in capital assets, net of related debt
Restricted for:
Program purposes
Unrestricted
TOTAL BUSINESS -TYPE
ACTIVITIES NET ASSETS
Primary Government:
Invested in capital assets, net of related debt
Restricted for:
Program purposes
Capital projects
Unrestricted
TOTAL PRIMARY GOVERNMENT
NET ASSETS
TABLE 1
CITY OF PADUCAH, KENTUCKY
NET ASSETS BY COMPONENT
Last Eight Fiscal Years (1)
(accrual basis of accounting)
Fiscal Year
2010(3) 2009 2008 2007 2006 2005(2) 2004 2003
$ 31,136,514 $ 31,215,252 $ 31,766,783 $ 32,557,572 $ 30,664,671 $ 29,492,197 $ 27,826,117 $ 27,955,839
1,100,696 2,183,559 1,782,251 1,904,321 1,018,231 727,699 714,538 713,766
5,077,026 4,363,913 5,028,420 4,618,923 2,689,804 940,323 4,031,802 3,583,589
8,165,101 8,621,077 9,432,763 9,057,641 7,718,198 7,419,037 (406,042) 1,571,120
$ 45,479,337 $ 46,383,801 $ 48,010,217 $ 48,138,457 $ 42,090,904 $ 38,579,256 $ 32,166,415 $ 33,824,314
$ 1,652,961 $ 1,721,419 $ 1,863,975 $ 1,491,523 $ 1,277,720 $ 1,463,118 $ 1,463,668 $ 1,425,753
620,800 369,368 579,460 - - -
1,816,705 1,036,093 (19,965) (147,286) 132,090 (27,648) 1,979,494 1,565,100
$ 4,090,466 $ 3,126,880 $ 2,423,470 $ 1,344,237 $ 1,409,810 $ 1,435,470 $ 3,443,162 $ 2,990,853
$ 32,789,475 $ 32,936,671 $ 33,630,758 $ 34,049,095 $ 31,942,391 $ 30,955,315 $ 29,289,785 $ 29,381,592
1,721,496 2,552,927 2,361,711 1,904,321 1,018,231 727,699 714,538 713,766
5,077,026 4,363,913 5,028,420 4,618,923 2,689,804 940,323 4,031,802 3,583,589
9,981,806 9,657,170 9,412,798 8,910,355 7,850,288 7,391,389 1,573,452 3,136,220
$ 49,569,803 $ 49,510,681 $ 50,433,687 $ 49,482,694 $ 43,500,714 $ 40,014,726 $ 35,609,577 $ 36,815,167
(1) The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003. Therefore, ten years of data is not available but
will be accumulated over time.
(2) Significant change in governmental and business -type net assets due to reclassification for prior year omitted receivables, capital assets and post -closure
landfill expenses.
(3) Significant change in governmental net assets due to restatement of prior year grant receivables.
a
d
Pages 1 of 3
TABLE 2
CITY OF PADUCAH, KENTUCKY
CHANGES IN NET ASSETS
Last Eight Fiscal Years (1)
(accrual basis of accounting)
Program Revenues:
Governmental activities:
Charges for services:
General government
Public safety
Public service
Parks and recreation
Planning and development
Operating grants and contributions
Capital grants and contributions
Total governmental activities program
revenues
$ 993,371
$ 1,303,667
$ 1,415,943
$ 1,730,046
Fiscal Year
$ 1,485,005
$ 1,601,414
$ 1,445,383
Expenses:
2010(4)
2009
2008(3)
2007
2006
2005(2)
2004
2003
Governmental activities:
1,111,188
1,150,507
942,355
895,155
986,618
683,119
152,890
180,420
General government
$ 9,763,178
$ 12,148,118
$ 10,709,641
$ 9,462,543
$ 9,057,295
$ 8,431,994
$ 7,969,027
$ 7,396,882
Public safety
16,239,042
15,734,557
15,938,831
15,182,704
14,592,756
14,620,938
13,243,912
12,964,120
Public service
7,669,729
12,849,566
9,543,714
8,299,658
8,486,662
6,249,860
8,618,901
7,376,791
Parks and recreation
2,653,474
1,492,306
1,286,955
1,197,072
1,044,361
1,045,024
1,026,293
975,362
Planning and development
970,022
708,827
282,042
1,891,725
2,404,636
2,521,412
5,330,393
3,108,192
Interest on long-term debt
1,099,450
1,029,888
1,066,067
1,134,898
974,101
775,122
496,049
428,578
Total governmental activities expense
38,394,895
43,963,262
38,827,250
37,168,600
36,559,811
33,644,350
36,684,575
32,249,925
Business -type activities:
Solid Waste
3,797,097
4,037,845
4,086,747
4,079,684
3,893,013
3,683,954
3,419,464
3,359,731
Section Eight Housing
2,061,370
2,154,360
1,949,899
-
-
-
-
-
Civic Center
69,537
75,692
84,908
54,562
45,894
39,008
33,181
46,509
TISA
206,798
162,849
156,388
267,192
269,781
170,264
184,166
123,719
Total business -type activities expense
6,134,802
6,430,746
6,277,942
4,401,438
4,208,688
3,893,226
3,636,811
3,529,959
TOTAL PRIMARY GOVERNMENT
EXPENSES
$ 44,529,697
$ 50,394,008
$ 45,105,192
$ 41,570,038
$ 40,768,499
$ 37,537,576
$ 40,321,386
$ 35,779,884
Program Revenues:
Governmental activities:
Charges for services:
General government
Public safety
Public service
Parks and recreation
Planning and development
Operating grants and contributions
Capital grants and contributions
Total governmental activities program
revenues
$ 993,371
$ 1,303,667
$ 1,415,943
$ 1,730,046
$ 1,618,903
$ 1,485,005
$ 1,601,414
$ 1,445,383
484,754
602,262
268,839
1,024,610
767,086
794,814
1,134,386
94,386
1,197,194
1,220,999
1,111,188
1,150,507
942,355
895,155
986,618
683,119
152,890
180,420
124,606
122,929
103,932
117,317
132,388
131,355
-
1,600
30,627
10,810
20,602
13,501
12,893
15,867
1,813,019
2,119,845
1,340,261
2,797,216
2,988,612
2,452,694
3,290,134
4,176,548
1,390,848
4,889,520
1,297,900
3,681,490
3,302,568
1,100,064
3,221,637
2,213,757
6,032,076
10,318,313
5,589,364
10,517,608
9,744,058
6,858,550
10,379,470
8,760,415
Program Revenues:
Business -type activities:
Solid Waste
Section Eight Housing
Civic Center
TISA
Operating grants and contributions
Capital grants and contributions
Total business -type activities program
revenues
TOTAL PRIMARY GOVERNMENT
PROGRAM REVENUES
Net (Expense)/Revenue:
Governmental activities
Business -type activities
TOTAL PRIMARY GOVERNMENT
NET (EXPENSE)
General Revenues and Other Changes
in Net Assets:
Governmental activities:
Taxes and licenses:
Property taxes, levied for
general purposes
Insurance premium tax
Gross receipts license tax
Employee license tax
Other taxes
Intergovernmental revenue
Unrestricted investment earnings
Gain on sale of capital assets
Transfers
Total governmental activities
TABLE 2
CITY OF PADUCAH, KENTUCKY
CHANGES IN NET ASSETS
Last Eight Fiscal Years (1)
(accrual basis of accounting)
Fiscal Year
Pages 2 of 3
2010 (4)
2009
2008 (3)
2007
2006
2005 (2)
2004
2003
$ 4,436,540
$ 4,547,959
$ 4,165,094
$ 3,928,140
$ 3,696,609
$ 3,583,417
$ 3,790,132
$ 3,298,964
32,455
38,577
32,932
31,372
26,378
32,828
36,455
20,825
148,158
148,291
143,833
193,713
106,697
104,087
100,778
93,383
2,340,267
1,965,936
1,785,809
-
-
-
-
-
27,239
129,032
9,480
23,969
22,894
14,735
24,990
3,666
6,984,659 6,829,795 6,137,148 4,177,194 3,852,578 3,735,067 3,952,355 3,416,838
$ 13,016,735 $ 17,148,108 $ 11,726,512 $ 14,694,802 $ 13,596,636 $ 10,593,617 $ 14,331,825 $ 12,177,253
(32,362,819) (33,644,949) (33,237,886) (26,650,992) (26,815,753) (26,785,800) (26,305,105) (23,489,510)
849,857 399,049 (140,794) (224,244) (356,110) (158,159) 315,544 (113,121)
$ (31,512,962) $ (33,245,900) $ (33,378,680) $ (26,875,236) $ (27,171,863) $ (26,943,959) $ (25,989,561) $ (23,602,631)
4,207,736
3,986,760
4,221,957
4,122,538
4,107,934
3,919,113
4,012,168
3,797,347
4,055,228
4,699,458
4,414,672
39863,953
3,957,289
3,767,864
4,229,102
4,320,850
4,061,587
4,050,057
3,899,432
3,720,784
3,496,438
16,384,509
16,584,636
16,520,523
16,273,966
14,794,217
11,192,445
10,616,223
2,844,154
2,776,407
2,259,956
1,964,101
2,105,014
2,116,403
1,764,140
-
-
1,401,400
1,243,028
1,201,973
955,645
871,273
172,213
336,960
540,620
639,702
462,292
290,647
220,992
64,620
68,530
119,200
48,656
8,340
-
(1,972)
(78,893)
(110,838)
(96,609)
(58,175)
(115,754)
(133,959)
(68,964)
31,620,788
32,018,533
33,728,092
32,698,545
30,327,401
26,018,367
24,678,162
3,893,211
3,580,964
3,404,338
10,301,231
1,893,064
836,132
325,811
125,714
18,666
24,379,131
General Revenues and Other Changes
in Net Assets:
Business -type activities:
Unrestricted investment earnings
Gain on sale of capital assets
Transfers
Total business -type activities
Pages 3 of 3
TABLE 2
CITY OF PADUCAH, KENTUCKY
CHANGES IN NET ASSETS
Last Eight Fiscal Years (1)
(accrual basis of accounting)
Fiscal Year
2010 (4) 2009 2008 (3) 2007 2006 2005(2)_ 2004 2003
$ 33,724 $ 52,961 $ 73,985
1,112 98,369 127,131
78,893 110,838 96,609
113,729 262,168 297,725
83,854
$ 85,786
16,641
55,337
58,176
115,754
158,671
256,877
$ 51,508 $ 32,826 $ 39,530
27,500 34,975 24,238
133,959 68,964 (18,666)
212,967 136,765 45,102
Change in Net Assets:
Governmental activities: (742,031) (1,626,416) 490,206 6,047,553 3,511,648 (767,433) (1,626,943) 889,621
Business -type activities: 963,586 661,217 156,931 (65,573) (99,233) 54,808 452,309 (68,019)
TOTAL PRIMARY GOVERNMENT $ 221,555 $ (965,199) $ 647,137 $ 5,981,980 $ 3,412,415 $ (712,625) $ (1,174,634) $ 821,602
N
(1) The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003. Therefore, ten years of data is not available but will
be accumulated over time.
(2) Significant change in governmental and business -type net assets due to reclassification for prior year omitted receivables, capital assets and post -closure landfill
expenses.
(3) The City began reporting Section Eight Housing fund as a business -type activity previously reported as a governmental fund. Prior years have not been restated.
(4) Significant change in governmental net assets due to restatement of prior year grant receivables.
General Fund:
Reserved for:
Encumbrances
Unreserved
TOTAL GENERAL FUND
All Other Governmental
Funds:
Reserved for:
Program purposes
Capital improvements
Encumbrances
Unreserved, reported in:
Special revenue funds
Debt service funds
TOTAL ALL OTHER
GOVERNMENTAL
FUNDS
TABLE 3
CITY OF PADUCAH, KENTUCKY
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2010(4) 2009 2008(3) 2007 2006 2005(1) 2004 2003 2002 2001(2)
10,208,678 10,311,490 9,416,427 9,976,079 9,157,310 8,303,702 4,642,073 4,925,982 4,441,662 4,229,377
$10,208,678 $10,311,490 $9,416,427 $9,976,079 $9,157,310 $8,303,702 $4,642,073 $4,925,982 $4,441,662 $ 4,229,377
$ - $ 479,362 $ 497,243 $1,009,522 $ 783,596 $ 498,423 $ 483,423 $ 695,213 $ 567,096 $ 604,021
7,996,497 4,363,913 5,028,420 4,618,923 2,689,804 940,323 3,886,391 3,583,589 4,211,718 9,834,405
1,310,287 1,061,941 631,677 502,189 758,017 1,039,854 770,453 1,080,043 714,972 1,247,619
92,444 93,244 65,048 31,836 32,364 9,805 30,243 46,051 244,724 232,640
$ 9,399,228 $ 5,998,460 $6,222,388 $6,162,470 $4,263,781 $2,488,405 $5,170,510 $5,404,896 $5,738,510 $11,918,685
(1) Significant increase in general fund balance due to reclassification for prior year omitted license and tax receivables in the amount of $3,870,992.
(2) Significant increase in capital improvements fund balance due to $9,290,000 bond issue for convention and arts center construction.
(3) Significant decrease in reserve for program purpose due to converting governmental fund to proprietary fund.
(4) Significant decrease in general fund balance due to restatement of prior year grant receivables.
TABLE 4
CITY OF PADUCAH, KENTUCKY
Changes in
Fund Balances,
Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal
Year
Revenues:
2010
2009
2008
2007
2006
2005
2004
2003(1)
2002
2001
Taxes
6,326,740
5,867,782
6,139,164
6,044,069
6,204,686
6,016,570
5,871,229
5,773,871
5,377,865
4,881,408
Licenses
24,979,768
25,411,112
25,924,562
25,140,615
23,432,565
19,368,765
18,423,244
17,900,739
17,299,400
16,705,030
Charges for services
846,087
866,688
835,105
783,018
654,059
625,281
668,659
743,826
1,452,732
1,332,280
Intergovernmental
1,091,324
1,086,377
1,565,348
1,676,783
1,529,879
1,192,724
1,029,307
1,186,306
590,372
450,412
Grants
2,062,554
5,405,810
1,673,936
6,089,711
5,797,500
3,758,041
4,002,721
4,900,775
3,990,245
3,761,900
Interest
121,246
225,251
419,103
540,204
402,943
251,302
190,350
316,794
541,277
515,299
Miscellaneous
2,653,382
2,250,344
1,944,310
1,832,161
1,844,285
1,377,175
3,781,034
1,803,408
963,956
1,110,447
Total revenues
38,081,101
41,113,364
38,501,528
42,106,561
39,865,917
32,589,858
33,966,544
32,625,719
30,215,847
28,756,776
Expenditures:
General government
5,277,916
4,726,435
5,051,374
4,763,839
4,286,431
4,171,662
3,891,251
3,943,031
3,446,408
3,386,330
Public safety
15,999,437
15,599,613
15,696,728
14,759,735
14,366,846
14,376,161
12,963,685
12,535,382
12,293,481
11,579,654
Public service
5,984,115
7,855,846
7,935,188
7,226,542
7,418,656
5,947,105
6,914,523
5,995,396
7,163,787
5,923,130
Parks and recreation
2,582,382
1,490,732
1,298,329
1,192,727
1,044,299
1,045,024
1,026,297
975,361
897,060
738,401
Planning and development
1,868,369
1,811,083
803,976
2,424,198
2,545,227
2,267,774
2,570,473
2,204,395
2,231,628
2,784,725
Other
847,188
514,488
520,611
526,238
481,690
462,099
2,343,844
645,653
323,844
99,657
Capital outlay
8,324,312
8,580,910
4,826,983
6,504,491
5,003,091
4,870,136
10,987,184
4,172,978
7,579,179
3,850,565
Debt service:
Principal requirement
1,020,585
830,682
880,887
782,870
594,047
552,938
428,613
379,229
362,275
140,636
Interest and fiscal
requirement
1,077,128
1,003,439
1,051,008
1,108,385
949,537
745,676
471,625
428,578
413,364
25,752
Total expenditures
42,981,432
42,413,228
38,065,084
39,289,025
36,689,824
34,438,575
41,597,495
31,280,003
34,711,026
28,528,850
Other Financing Sources
(Uses):
Bonds issued
6,645,000
1,718,605
-
-
6,100,000
-
5,000,000
-
-
9,104,211
Long-term debt draws
1,222,390
-
-
-
-
-
-
-
-
Long-term debt issued
258,391
69,032
-
246,667
275,000
3,500,000
Capital lease
405,796
405,796
371,979
-
-
-
-
-
-
Transfers in
9,722,852
5,928,413
6,241,886
5,209,977
6,034,070
3,394,420
3,939,188
29074,459
1,788,462
3,632,867
Transfers out
(9,893,709)
(6,150,847)
(7,086,517)
(5,556,722)
(12,681,180)
(4,712,171)
(5,295,576)
(3,167,686)
(3,062,056)
(4,966,004)
Total other financing
sources (uses)
8,360,720
1,970,999
(472,652)
(100,078)
(547,110)
(1,042,751)
7,143,612
(1,093,227)
(1,273,594)
7,771,074
NET CHANGE IN FUND
BALANCES
$ 3,460,389
$ 671,135
$ (36,208)
$ 2,717,458
$ 2,628,983
$ (2,891,468)
$ (487,339)
$ 252,489
$ (5,768,773)
$ 7,999,000
Capital outlay (2)
$ 8,763,073
$ 2,850,717
$ 2,857,189
$ 4,638,045
$ 3,779,542
$ 3,981,143
$ 9,144,907
$ 1,907,998
$
$ -
Debt service as a percentage
of noncapital expenditures
6.13%
4.64%
5.49%
5.46%
4.69%
4.26%
2.77%
2.75%
2.86%
0.67%
(1) The City implemented GASB
34, the new reporting standard, in fiscal year 2003.
(2) For reports after fiscal year 2002, capital outlay is reported on the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental
Funds to the Statements of Activities.
TABLE 5
CITY OF PADUCAH, KENTUCKY
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Source: McCracken County Property Valuation Administrator
Notes: Property in McCracken county is reassessed once every four years on average.
Percent
Total
Assessed
Assessed Value
Estimated
Direct
To
Fiscal
Real Estate
Personal
Actual
Tax
Estimated
Year
Commercial
Residential
Property
Franchise
Total
Value
Rate
Value
Exemptions
2001
$ 558,387,762
$ 435,879,813
$ 479,928,323
$ 69,737,433
$1,543,933,331
$1,603,816,189
0.329
96.3%
$ 58,908,995
2002
575,900,884
448,383,787
466,849,195
71,286,784
1,562,420,650
1,623,844,461
0.328
96.2%
60,449,948
2003
592,033,879
461,336,810
453,327,389
79,952,984
1,586,651,062
1,647,809,422
0.327
96.3%
60,184,497
2004
602,788,179
484,958,897
438,024,336
73,121,063
1,598,892,475
1,661,522,546
0.326
96.2%
61,656,208
2005
622,478,658
500,350,485
425,304,684
74,460,202
1,622,594,029
1,684,469,469
0.325
96.3%
60,901,557
2006
636,606,837
525,613,365
452,475,748
74,683,129
1,689,379,079
1,750,930,676
0.325
96.5%
61,551,597
2007
692,018,288
561,151,216
482,481,332
51,455,112
1,787,105,948
1,847,595,428
0.307
96.7%
60,489,480
2008
748,189,877
603,688,455
481,049,523
74,068,797
1,906,996,652
1,970,156,891
0.287
96.8%
63,160,239
2009
776,876,510
645,672,462
526,966,182
56,333,800
2,005,848,954
2,069,450,607
0.288
96.9%
63,601,653
2010
797,902,456
659,381,375
495,273,730
57,459,000
2,010,016,561
2,076,961,686
0.286
96.8%
66,945,125
Source: McCracken County Property Valuation Administrator
Notes: Property in McCracken county is reassessed once every four years on average.
TABLE 6
CITY OF PADUCAH, KENTUCKY
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
Source: McCracken County Property Valuation Administrator and City Tax Levy Ordinance.
City Direct Rates
Overlapping Rates
McCracken Co.
City of Paducah
Paducah
McCracken
General Fund
School
Districts
School
Districts
Junior College
County
Total
Fiscal
Real
Direct
Real
Real
Real
Real
Year
Estate
Personal
Rate
Estate
Personal
Estate
Personal
Estate
Personal
Estate Personal
2001
0.300
0.390
0.329
0.385
0.385
0.597
0.599
0.022
0.022
0.195
0.223
2002
0.300
0.390
0.328
0.385
0.385
0.600
0.597
0.022
0.022
0.196
0.237
2003
0.300
0.390
0.327
0.396
0.396
0.598
0.603
0.022
0.022
0.196
0.221
N
2004
0.300
0.390
0.326
0.394
0.394
0.617
0.605
0.021
0.021
0.190
0.199
2005
0.300
0.390
0.325
0.448
0.448
0.618
0.617
0.021
0.021
0.196
0.226
2006
0.300
0.390
0.325
0.433
0.433
0.631
0.619
0.020
0.021
0.197
0.236
2007
0.275
0.390
0.307
0.433
0.433
0.628
0.631
0.019
0.019
0.197
0.236
2008
0.250
0.390
0.287
0.488
0.488
0.672
0.635
0.018
0.018
0.189
0.219
2009
0.250
0.390
0.288
0.489
0.491
0.672
0.678
0.021
0.023
0.096
0.106
2010
0.250
0.390
0.286
0.504
0.504
0.678
0.678
0.022
0.022
0.095
0.095
Source: McCracken County Property Valuation Administrator and City Tax Levy Ordinance.
Taxpayer
Kentucky Oaks Mall
South Central Bell
Olivet Church 1031 LLC
Ducmall LLC
Paducah Medical Investors
Wal-Mart Real Estate Trust
Sams Real Estate Bus Trust
Computer Services, Inc.
Wal Mart Store
Amerisource
Lowes
H.B. Fuller
Firstar Bank
Drury Inns, Inc.
Duke & Long
VMV
Union Planters
TABLE 7
CITY OF PADUCAH, KENTUCKY
PRINCIPAL TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2010
(1) (1)
Percentage of
Assessed Total Assessed
Valuation Valuation
2001
(2) (2)
Percentage of
Assessed Total Assessed
Valuation Valuation
$ 50,900,262
2.54%
$ 45,570,900
3.37%
16,221,600
0.81%
10,245,400
0.51%
14,374,800
0.72%
13,440,090
0.67%
10,646,400
0.53%
9,222,955
0.46%
9,083,185
0.45%
12,983,718
0.96%
9,000,000
0.45%
35,688,462
2.64%
29,949,886
1.49%
21,093,262
1.56%
13,845,576
1.02%
14,219,648
1.05%
11,964,595
0.88%
13,629,918
1.01%
11,980,316
0.89%
8,134,403
0.60%
5,960,502
0.44%
TOTALS $173,084,578 8.63% $ 195,071,300
(1) Source - Property Valuation Administration; Assessed value as of January 1, 2009.
(2) Source - Property Valuation Administration; Assessed value as of January 1, 2000.
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14.42%
TABLE 8
CITY OF PADUCAH, KENTUCKY
SECURED TAX LEVIES AND COLLECTIONS*
LAST TEN FISCAL YEARS
2003
3,668,044
Collected within the
93.1%
124,095
3,538,424
96.5%
2004
Fiscal Year of the Levy
3,685,957
Total Collections to Date
Fiscal
(1)
99.2%
2005
3,834,909
3,762,592
Year
Taxes Levied
(1) Percent of
Collections
2006
Percent of
Ended
for the
Amount of Levy
in Subsequent
Total
Levy
June 30,
Fiscal Year
Collections Collected
Years
Collections
Collected
2001
$ 3,485,185
$ 3,297,284 94.6%
$129,425
$ 3,297,284
94.6%
2002
3,636,130
3,449,887 94.9%
152,893
3,602,780
99.1%
2003
3,668,044
3,414,329
93.1%
124,095
3,538,424
96.5%
2004
3,801,229
3,685,957
97.0%
83,740
3,769,697
99.2%
2005
3,834,909
3,762,592
98.1%
71,432
3,834,024
100.0%
2006
4,014,254
3,911,868
97.4%
92,426
4,004,294
99.8%
2007
4,000,988
3,855,679
96.4%
126,527
3,982,206
99.5%
2008
3,975,577
3,814,940
96.0%
124,199
3,939,139
99.1%
2009
4,202,774
4,017,032
95.6%
91,059
4,108,091
97.7%
2010
4,260,852
4,131,454
97.0%
-
4,131,454
97.0%
(1) Includes current year real and personal property tax.
* Source - City of Paducah Finance Department.
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TABLE 9
CITY OF PADUCAH, KENTUCKY
EMPLOYEE LICENSE TAX COLLECTIONS
LAST TEN FISCAL YEARS
(1) Source - City of Paducah Finance Department - Actual collections during the fiscal year.
(2) Effective October 1, 2005, employee license tax rate increased from 1.5% to 2.0%.
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(1)
Direct
Fiscal
Taxes
Tax
Year
Collected
Rate
2001
9,603,106
1.50%
2002
9,873,201
1.50%
2003
10,301,231
1.50%
2004
10,616,222
1.50%
2005
11,183,157
1.50%
2006
14,947,835
2.00% (2)
2007
16,258,946
2.00%
2008
16,535,542
2.00%
2009
16,584,618
2.00%
2010
16,384,509
2.00%
$132,288,367
(1) Source - City of Paducah Finance Department - Actual collections during the fiscal year.
(2) Effective October 1, 2005, employee license tax rate increased from 1.5% to 2.0%.
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TABLE 10
CITY OF PADUCAH, KENTUCKY
PRINCIPAL EMPLOYEE LICENSE TAXPAYERS
CURRENT YEAR AND ONE YEAR AGO*
(1) Source - City of Paducah Finance Department - Actual collections during the fiscal year.
*Comparative taxpayers by range information is only available after fiscal year 2006.
-129-
2010
(1)
Percentage of
Taxpayers
Number of
Percentage
Taxes
Total Employee
By Range
Filers
of Total
Collected
License Tax
$0-$50,000
1,936
99.38%
$11,701,363
71.42%
$50,001 - $100,000
8
0.4.1%
1,553,815
9.48%
$100,001 - $500,000
4
0.21%
3,129,331
19.10%
Greater than $500,000
0
0.00%
-
0.00%
TOTALS
1,948
100.00%
$16,384,509
100.00%
(1) Source - City of Paducah Finance Department - Actual collections during the fiscal year.
*Comparative taxpayers by range information is only available after fiscal year 2006.
-129-
2009
(1)
Percentage of
Taxpayers
Number of
Percentage
Taxes
Total Employee
By Range
Filers
of Total
Collected
License Tax
$0-$50,000
2,012
99.26%
$11,630,775
70.13%
$50,001 - $100,000
11
0.54%
1,843,411
11.12%
$100,001 - $500,000
4
0.20%
3,110,432
18.75%
Greater than $500,000
0
0.00%
-
0.00%
TOTALS
2,027
100.00%
$16,584,618
100.00%
(1) Source - City of Paducah Finance Department - Actual collections during the fiscal year.
*Comparative taxpayers by range information is only available after fiscal year 2006.
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TABLE 11
CITY OF PADUCAH, KENTUCKY
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See Table 5 for estimated actual property value. This ratio is calculated using estimated property value for the prior year.
(2) See Table 15 for population data.
(3) See Table 15 for personal income data
(1)
Ratio of
(3)
Net
Net
Net
Net
Net Debt as
(2)
General
Public
Public
Refunding
Total
Debt to
Percentage
Net
Fiscal
Obligation
Improvement
Capital
Improvement
Revenue
Primary
Actual
of Personal
Debt Per
Year
Bonds
Debt
Lease
Debt
Bonds
Government
Value
Income
Capita
2001
$ 9,057,359
$ -
$ 381,330
$ -
$ -
$ 9,438,689
0.59
1.95%
$ 359
2002
8,830,276
-
234,054
-
-
9,064,330
0.56
1.87%
345
2003
8,803,949
-
79,825
-
-
8,883,774
0.54
1.83%
338
w 2004
13,589,757
3,428,855
-
-
-
17,018,612
1.02
3.51%
647
0
2005
13,210,195
3,503,274
-
-
-
16,713,469
0.99
3.45%
635
2006
18,877,636
3,319,227
-
-
-
22,196,863
1.27
4.58%
844
2007
18,278,164
3,320,522
-
-
-
21,598,686
1.17
4.46%
821
2008
17,614,952
2,946,303
-
-
-
20,561,255
1.04
4.24%
782
2009
19,706,394
5,187,262
-
-
-
24,893,656
1.20
5.14%
946
2010
25,568,996
5,808,267
-
-
-
31,377,263
1.51
6.48%
1,193
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See Table 5 for estimated actual property value. This ratio is calculated using estimated property value for the prior year.
(2) See Table 15 for population data.
(3) See Table 15 for personal income data
TABLE 12
CITY OF PADUCAH, KENTUCKY
RATIO OF NET GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See Table 5 for estimated actual property value. This ratio is calculated using estimated property value for the prior year.
(2) See Table 15 for population data.
(1)
General Bonded
Debt Outstanding
Ratio of
Police and
Infiniti
Public
Less
Net
(2)
Convention and
Fire Pension
Media
Floodwall
Improvement
Resources
Bonds to
Net
Fiscal
Art Center
Fund
Building
Rehabilitation
Project
Restricted for
Actual
Bonds Per
Year
Bonds
Bonds
Bonds
Bonds
Bonds
Debt Service
Total
Value
Capita
2001
$9,290,000
$ -
$ -
$ -
$ -
$232,641
$ 9,057,359
0.56
$ 344
2002
9,075,000
-
-
-
-
244,724
8,830,276
0.54
336
2003
8,850,000
-
-
-
-
46,051
8,803,949
0.53
335
2004
8,620,000
-
5,000,000
-
-
30,246
13,589,754
0.82
517
W 2005
8,380,000
-
4,840,000
-
-
9,805
13,210,195
0.78
502
2006
8,130,000
6,100,000
4,680,000
-
-
32,364
18,877,636
1.08
718
2007
7,870,000
5,925,000
4,515,000
-
-
31,836
18,278,164
0.99
695
2008
7,600,000
5,740,000
4,340,000
-
-
65,048
17,614,952
0.89
670
2009
7,320,000
5,545,000
4,160,000
2,774,638
-
93,244
19,706,394
0.95
749
2010
7,030,000
5,340,000
3,975,000
2,671,440
6,645,000
92,444
25,568,996
1.23
972
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See Table 5 for estimated actual property value. This ratio is calculated using estimated property value for the prior year.
(2) See Table 15 for population data.
TABLE 13
CITY OF PADUCAH, KENTUCKY
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 309 2010
City of Paducah
Paducah Independent School District
McCracken County
McCracken County Board of Education
Overlapping debt
TOTAL DIRECT AND OVERLAPPING DEBT
(1) Applicable percentage is determined by ratio of assessed valuation of property subject to taxation
in overlapping unit to valuation of property subject to taxation in reporting unit.
* Information from finance office at each location.
-132-
Estimated
(1)
Share of
Percentage
Direct and
Net Debt
Applicable
Overlapping
Outstanding
to the City
Debt
$31,377,263
100.00%
$31,377,263
22,991,414 *
100.00%
22,991,414
12,565,000 *
46.00%
5,779,900
26,576,232 *
31.20%
8,291,784
62,132,646
37,063,098
$93,509,909
$68,440,361
(1) Applicable percentage is determined by ratio of assessed valuation of property subject to taxation
in overlapping unit to valuation of property subject to taxation in reporting unit.
* Information from finance office at each location.
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Net assessed value
Add exemption
Total assessed value
Debt limit - 10% of total assessed (1)
Debt outstanding:
General obligation bonds outstanding
Note payable
Less debt not subject to limit
Gross bonded debt
Less amount available in debt service
funds
wNet bonded indebtedness subject to
limit
LEGAL DEBT MARGIN
Debt limit
Total net debt
applicable to limit
LEGAL DEBT
MARGIN
Total net debt
applicable to the
limited as a
percentage of
debt limit
TABLE 14
CITY OF PADUCAH, KENTUCKY
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
$ 25,661,440
5,808,267
31,469,707
92,444
Fiscal Year
$2,010,016,561
66,945,125
$2,076,961,686
$207,696,168.6
31,377,263
$ 176,318,906
2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
$207,696,169 $206,945,061 $197,015,689 $182,759,543 $175,093,068 $168,349,559 $166,054,868 $164,683,556 $162,287,060 $ 160,284,233
31,377,263 24,893,656 20,561,255 21,598,686 22,196,863 16,713,469 17,018,612 8,883,774 9,064,330 9,438,689
$176,318,906 $182,051,405 $176,454,434 $161,160,857 $152,896,205 $151,636,090 $149,036,256 $155,799,782 $153,222,730 $ 150,845,544
15.11% 12.03% 10.44% 11.82% 12.68% 9.93% 10.25% 5.39% 5.59% 5.89%
(1) "Cities shall not be authorized or permitted to incur indebtedness to an amount, including existing indebtedness, in the aggregate exceeding the following names maximum percentages on the value
of the taxable property therein, to be estimated by the assessment previous to the incurring of the indebtedness: Cities of the first and second classes, and of the third class having a population
exceeding fifteen hundred, ten per centum."
TABLE 15
CITY OF PADUCAH, KENTUCKY
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Sources:
(1) Bureau of the Census Count - 2000.
(2) Board of Education; represents elementary and secondary public schools.
(3) Kentucky Cabinet for Human Resources, Department for Employment Services.
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(3)
Unemployment
Rate
5.0%
6.3%
7.2%
5.8%
6.4%
5.7%
5.6%
6.1%
9.3%
8.5%
(1)
(1)
(1)
(1)
(2)
Personal
Per Capita
Median
School
Fiscal Year
Population
Income
Income
Age
Enrollment
2000-2001
26,307
$ 484,496,019
$18,417
39.9
3,037
2001-2002
26,307
484,496,019
18,417
39.9
2,909
2002-2003
26,307
484,496,019
18,417
39.9
2,887
2003-2004
26,307
484,496,019
18,417
39.9
2,977
2004-2005
26,307
484,496,019
18,417
39.9
2,819
2005-2006
26,307
484,496,019
18,417
39.9
2,834
2006-2007
26,307
484,496,019
18,417
39.9
2,804
2007-2008
26,307
484,469,019
18,417
39.9
2,832
2008-2009
26,307
484,469,019
18,417
39.9
2,774
2009-2010
26,307
484,469,019
18,417
39.9
2,659
Sources:
(1) Bureau of the Census Count - 2000.
(2) Board of Education; represents elementary and secondary public schools.
(3) Kentucky Cabinet for Human Resources, Department for Employment Services.
-134-
(3)
Unemployment
Rate
5.0%
6.3%
7.2%
5.8%
6.4%
5.7%
5.6%
6.1%
9.3%
8.5%
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Governmental Activities
General Government:
General administration
Finance
Human resources
Inspection
Information systems
Risk management
Public Safety:
Police
Fire
Public Service:
Streets
Facilities
Engineering
Other
Parks and recreation
Planning and development
Other:
Renaissance
Fleet maintenance
Business -ape Activities
Solid waste
TOTAL PRIMARY GOVERNMENT
* Employee budget census.
TABLE 17
CITY OF PADUCAH, KENTUCKY
CITY FULL-TIME EMPLOYEES BY FUNCTION*
Last Ten Fiscal Years
Fiscal Year
2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
12
12
12
12
12
11
11
11
12
13
14
17
14
14
14
13
13
13
13
13
0
0
3
3
3
4
3
3
3
4
10
13
13
13
12
12
12
12
13
14
6
4
4
4
3
3
3
3
2
1
1
1
1
1
1
0
0
0
0
0
90
93
93
93
93
96
94
95
94
94
65
69
69
71
76
75
76
76
77
81
23
29
29
30
31
28
28
28
28
29
34
36
35
34
35
38
39
39
38
36
5
8
9
9
9
9
8
8
8
8
4
6
6
6
4
4
2
2
2
0
7
7
7
7
7
9
9
8
8
7
9
10
11
11
11
11
11
11
10
10
3
5
0
0
0
0
0
0
0
0
8
6
7
7
7
7
6
6
6
6
27
27
27
27
29
29
29
29
29
30
318
343
340
342
347
349
344
344
343
346
General Government:
Building and electrical
permits issued
Business licenses issued
Public Safety:
Police:
Adult arrests
Murder
Rape
Robberies
Burglary
Auto theft
Arson
Traffic accidents
Traffic violations
Fire:
Emergency responses
Fires extinguished
Structure fires
Incidents with reported
losses
Medical/rescue
Tours/in-services/car seats
Training man hours
Inspections
Refuse Collection:
Residential:
Refuse collected (tons per day)
Customers served
Commercial:
Refuse collected (tons per day)
Customers served
Public Service:
911 dispatches
Police
Fire
Other
* Information not available.
** Information from city departments.
2005
2004
TABLE 18
2002
2001
CITY
OF PADUCAH,
KENTUCKY
OPERATING
INDICATORS BY FUNCTION**
*
Last Ten
Fiscal Years
*
2010
2009
2008
2007
2006
1,263
1,179
1,203
1,411
1,362
3,397
3,691
3,507
3,500
3,700
3,859
4,454
4,170
5,012
3,827
1
5
-
-
-
12
20
15
18
15
56
41
49
42
35
245
169
203
208
211
62
57
60
117
104
7
7
8
16
7
1,774
1,368
1,519
1,949
1,815
7,240
9,143
7,109
7,323
7,468
2,603
3,305
2,603
2,456
2,546
133
136
102
163
181
49
57
49
40
53
89
85
70
80
91
1,690
1,616
1,506
1,369
1,589
676
907
699
485
485
8,493
7,716
4,344
1,183
1,418
985
1,183
1,449
*
*
38
32
25
28
34
9,445
9,435
9,446
9,388
9,368
70
75
83
85
84
810
810
821
832
801
79,768
81,525
83,871
76,815
83,348
42,496
40,921
43,420
41,887
47,091
2,702
2,490
2,720
2,399
2,907
34,570
38,114
37,731
32,529
33,350
2005
2004
2003
2002
2001
1,376
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
3,219
3,638
3,569
2,845
1,665
176
189
198
194
177
49
64
70
72
66
97
106
111
129
102
1,997
2,266
2,290
1,551
370
485
485
485
468
558
1,188
965
1,058
804
1,619
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
85,273
91,408
92,698
88,512
89,645
48,275
53,504
54,521
53,318
53,903
3,424
4,190
4,058
2,467
2,107
33,574
33,714
34,119
32,727
33,635
Public Safety:
Police:
Stations
Fire:
Stations
Refuse Collection:
Collection trucks:
Residential
Commercial
Other Public Works:
Streets (miles paved)
Sidewalks (miles)
w Traffic signals
90 Parks and Recreation:
Parks
Acreage
Community centers
Swimming pools
Public tennis courts
Public golf courses
# Information not available.
* Information from city departments.
TABLE 19
CITY OF PADUCAH, KENTUCKY
CAPITAL ASSET STATISTICS BY FUNCTION*
Last Ten Fiscal Years
Fiscal Year
2010
2009
2008
2007
2006 2005
2004
2003
2002
2001
1
1
1
1
1 1
1
1
1
1
5
5
5
5
5 5
5
5
5
5
9
7
10
9
8 8
#
#
#
#
5
4
5
5
4 4
#
#
#
#
218
216
216
216
214 214
213
209
209
209
47
45
45
45
45 45
45
45
45
45
13
12
11
11
11 11
10
0
0
0
27
27
27
27
18 18
18
18
18
18
1290
960
960
960
325 325
325
325
325
325
1
1
1
1
1 1
1
1
1
1
1
1
1
1
1 1
1
3
3
3
6
6
6
6
6 6
6
6
6
6
2
2
2
2
2 2
2
2
2
2
CITY OF PADUCAH, KENTUCKY
SINGLE AUDIT SECTION
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2010
CITY OF PADUCAH, KENTUCKY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2010
Federal Grantor/Pass-Through Grantor/
Program Title:
Department of Housing and Urban
Development:
Direct Programs:
Section 8 Housing Choice Vouchers
Passed -through Kentucky Governors
Office for Local Development
Community Development Block Grant
Passed -through Kentucky Housing
Corporation:
Home Investment Partnerships Program
Total Department of Housing and Urban
Development
Department of Justice:
Direct Programs:
Bulletproof Vest Partnership Program
Equitable Sharing Program
Edward Byrne Memorial Justice
Assistance Grant Program
ARRA - Edward Byrne Memorial Justice
Assistance Grant Program
ARRA - Community Oriented
Policing Services
Passed -through Kentucky Department
of Revenue:
Project Safe Neighborhoods
Passed -through Kentucky Department
of State Police:
Enforcing Underage Drinking
Laws Program
Total Department of Justice
Department of Agriculture:
Direct Programs:
Emergency Watershed Protection Program
Passed -through Kentucky Department of
Education:
Summer Food Service Program for
Children
Total Department of Agriculture
-139-
Federal
CFDA Pass -Through
Number Grantor Number Expenditures
14.871 N/A $2,308,775
14.228 KY20070109-0026 28,933
14.239 N/A 180,416
2,518,124
16.607
N/A
6,263
16.000
N/A
31,586
16.738
2009 -DJ -BX -1323
42,543
16.804
2009 -SB -B9-1734
65,793
16.710
2009-RK-WX-0377
121,172
16.609
CT -073-100
1,497
16.727 2008 -AH -FX -0044 7,218
10.923 68-5C16-9-126 13,416
10.559 N/A 8,372
21,788
(Continued)
CITY OF PADUCAH, KENTUCKY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2010
Federal Grantor/Pass-Through Grantor/
Program Title:
Department of Homeland Security:
Direct Programs:
Port Security Grant Program
Port Security Grant Program
Assistance to Fire Fighters Grant Program
Passed -through Kentucky Office of
Homeland Security:
Homeland Security Grant Program
Homeland Security Grant Program
Homeland Security Grant Program
Total Department of Homeland Security
Department of Transportation:
Passed -through Kentucky Department
of State Police:
State and Community Highway Safety
State and Community Highway Safety
Passed -through Kentucky Governor's
Office of Local Development:
Recreational Trails Program
Passed -through to River Heritage
Museum
Highway Planning and Construction
Total Department of Transportation
Department of Interior
Passed -through National Park Service:
Preserve America Grant Program
TOTAL EXPENDITURES OF FEDERAL AWARDS
Federal
CFDA
Pass -Through
Number
Grantor Number
Expenditures
97.056
2008GBT80131
4,155
97.056
2009PUT90154
18,847
97.044
EMW-2009-FO-11526
38,174
97.067
P02 094 0800020884 2
121,243
97.067
P02 094 1000002706 1
42,221
97.067
P02 094 1000002679 1
18,000
242,640
20.600
AL -09-33
$ 27,675
20.600
AL -10-23
14,465
20.219
P02 628 0600003374
2,305
20.205
C05024679
30,178
74,623
15.921 21 -08 -AP -4115 35,607
$3,168,854
See accompanying notes to schedule of expenditures of federal awards.
-140-
CITY OF PADUCAH, KENTUCKY
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2010
Note 1 - Basis of Presentation:
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
the City of Paducah and is presented on the accrual basis of accounting. The information in this
schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States,
Local Governments, and Non -Profit Organizations. Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the financial
statements.
Note 2 - Subreciuients:
The City of Paducah provided federal awards to subrecipients as follows:
Federal
CFDA Amount
Program Title Number Provided
Paducah Board of Education 10.559 $ 8,372
River Heritage Museum 20.205 30,178
-141-
THIS PAGE INTENTIONALLY LEFT BLANK
WILLIAMS, WILLIAMS & LENTZ, LLP
CERTIFIED PUBLIC ACCOUNTANTS
601 JEFFERSON
PADucAH, KENTUCKY 42001
J. RICHARD WALKER
ROBERT R. ROBERTSON
MAILING ADDRESS
C. SUZETTE CRONCH
POST OFFICE BOX 2500
MICHAEL F. KARNES
PADUCAH, KY 42002-2500
MARK A. THOMAS
Report on Internal Control Over Financial Reporting
ROGER G. HARRIS
and on Compliance and other Matters Based on an
TELEPHONE
270-443-3643
J. DAVID BAILEY, III
Audit of Financial Statements Performed in Accordance
G. LEON WILLIAMS, 1926.2004
with Government AuditingStandards
fm
270-444-0652
H. WILLIAM LENTZ, 1925-2007
JERRY G. SEVERNS
WEBSITE
wwlcpa.aom
Honorable William F. Paxton, Mayor
Members of the Board of Commissioners
City of Paducah
Paducah, Kentucky
We have audited the financial statements of the governmental activities, the business -type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the City of Paducah, Kentucky, as of and for the year ended June 30, 2010, which collectively
comprise the City of Paducah, Kentucky's basic financial statements and have issued our report thereon dated
December 16, 2010. Our report includes a reference to other auditors. We conducted our audit in accordance
with auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States.
Other auditors audited the financial statements of the Transit Authority of the City of Paducah, a component
unit, as described in our report on the City of Paducah, Kentucky's financial statements. This report does not
include the results of the other auditor's testing of internal control over financial reporting or compliance and
other matters that are reported on separately by those auditors.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Paducah, Kentucky's internal control over
financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions
on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of
Paducah, Kentucky's internal control over financial reporting. Accordingly, we do not express an opinion on
the effectiveness of the City of Paducah, Kentucky's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control such that there is a reasonable possibility that a material misstatement of the entity's financial
statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over financial
reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined
above. However, we identified certain deficiencies in internal control over financial reporting, described in the
accompanying schedule of findings and questioned costs (Part B item number one) that we consider to be
significant deficiencies in internal control over financial reporting. A significant deficiency is a deficiency, or
a combination of deficiencies, in internal control that is less severe than a material weakness, yet important
enough to merit attention by those charged with governance.
-142-
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Paducah, Kentucky's financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on compliance
with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
This report is intended solely for the information and use of management, City Commission, others within the
entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be
used by anyone other than these specified parties.
/ ZZ/0
December 16, 2010
-143-
WILLIAMS, WILLIAMS & LENTz, LLP
CERTIFIED PUBLIC ACCOUNTANTS
601 JEFFERSON
PADUCAH, KENTUCKY 42001
J. RICHARD WALKER
ROBERT R. ROBERTSON
AILING ADDRESS
POSTMOFFICE BOX 2500
C. SUZETTE CRONCH
PADUCAH, KY 42002-2500
ANNETTE T. RYAN
MICHAEL F. KARNES
TELEPHONE
MARK A. THOMAS
270-443-3643
ROGER G. HARRIS
Report on Compliance with Requirements Applicable
J. DAVID BAILEY, III
FAX
to Each Major Program and On Internal Control Over
270-444 52
G.
LEON WILLIAMS, 1926.2004
H. WILLIAM LENTZ, 1925-2007
Compliance in Accordance with OMB Circular A-133
WEBSITE
JERRY G. SEVERNS
iwkpa.com
Honorable William F. Paxton, Mayor
Members of the Board of Commissioners
City of Paducah
Paducah, Kentucky
Compliance
We have audited the compliance of the City of Paducah, Kentucky, with the types of compliance requirements
described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that
are applicable to each of its major federal programs for the year ended June 30, 2010. The City of Paducah,
Kentucky's major federal programs are identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs. Compliance with the requirements of laws,
regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the
City of Paducah, Kentucky's management. Our responsibility is to express an opinion on the City of Paducah,
Kentucky's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local
Governments, and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan
and perform ' the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the City of Paducah
Kentucky's compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination of the City of Paducah, Kentucky's compliance with those
requirements.
In our opinion, the City of Paducah, Kentucky complied, in all material respects, with the requirements
referred to above that are applicable to each of its major federal programs for the year ended June 30, 2010.
Internal Control Over Compliance
The management of the City of Paducah, Kentucky, is responsible for establishing and maintaining effective
internal control over compliance with requirements of laws, regulations, contracts and grants applicable to
federal programs. In planning and performing our audit, we considered the City of Paducah, Kentucky's
internal control over compliance with the requirements that could have a direct and material effect on a major
federal program in order to determine our auditing procedures for the purpose of expressing our opinion on
compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of City of Paducah, Kentucky's
internal control over compliance.
-144-
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal
program on a timely basis. A material weakness in internal control over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that
material noncompliance with a type of compliance requirement of a federal program will not be prevented, or
detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses, as defined above.
This report is intended solely for the information and use of management, City Commission, others within the
entity, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by
anyone other than these specified parties.
December 16, 2010
-145-
CITY OF PADUCAH, KENTUCKY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2010
A. Summary of Audit Results:
1. The auditor's report expresses an unqualified opinion on the basic financial statements of the City of
Paducah, Kentucky.
2. One instance of a significant control deficiency was disclosed during the audit of the basic financial
statements of the City of Paducah, Kentucky.
3. No instances of noncompliance material to the basic financial statements of the City of Paducah,
Kentucky were disclosed during the audit.
4. No instances of significant deficiencies were disclosed during the audit of the major federal award
programs.
S. The auditor's report on compliance for the major federal award programs for the City of Paducah,
Kentucky expresses an unqualified opinion.
6. There are no audit findings relative to the major federal awards program to be reported.
7. The programs tested as major programs included:
Name CFDA #
Section 8 Housing Choice Vouchers 14.871
8. The threshold for distinguishing Types A and B programs was $300,000.
9. The City of Paducah, Kentucky was determined to be a low-risk auditee.
B. Findings - Basic Financial Statements Audit:
1. Segregation of Duties - The payroll clerk is responsible for the processing of payroll and the direct
deposit transmission to employees. At a minimum, someone independent of the payroll function
should review the direct deposit transmission to validate the employees being paid and to check the
accuracy of the wages transmitted.
Management's Response: When management was notified of this finding during audit fieldwork,
additional controls were immediately enacted. A staff member independent of the payroll function
reviews the payroll file before transmission, examining the payees as well as verifying the
transmittal amount. Upon transmittal, this staff member also confirms that the correct amount was
transmitted to the bank.
C. Findings and Questioned Costs - Major Federal Award Programs:
None
-146-