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HomeMy WebLinkAboutCAFR-June-30-2001Issued by the Finance Department CITY OF PADUCAH, KENTUCKY COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2001 TABLE OF CONTENTS Exhibit No. Page No. Introductory Section: Letter of Transmittal 1- 9 Organizational Chart 10 Principal Officials 11 GFOA Certificate of Achievement 12 Financial Section: Independent Auditor's Report 13-14 General Purpose Financial Statements: ` Combined Balance Sheet - All Fund Types, Account Groups, and Discretely Presented J Component Units 1 15 -18 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds 2 19-20 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General, Budgeted Special Revenue, Debt Service, and Capital Projects Funds 3 21-22 Combined Statement of Revenues, Expenses and — Changes in Retained Eamings/Fund Balances - All Proprietary Fund Types, Nonexpendable Trust Funds, and Similar Discretely Presented Component Units 4 23-24 Combined Statement of Cash Flows - All Proprietary Fund Types, Nonexpendable Trust Funds, and Similar Discretely Presented Component Units 5 25-26 Pension Trust Funds - Statement of Changes in Plan Net Assets 6 27 Paducah Junior College, Incorporated - Statement of Current Funds Revenue, Expenditures, and Other Changes 7 28 Paducah Junior College, Incorporated - Statement of Changes in Fund Balances 8 29-30 Discretely Presented Component Units - Combining Balance Sheet 9 31 -34 Discretely Presented Component Units - Combining Statement of Revenues, Expenses, and Changes in Retained Earnings - Proprietary Fund Types 10 35 Discretely Presented Component Units - Combining Statement of Cash Flows - Proprietary Fund Types 11 36-37 Notes to Financial Statements 38-59 Pension Trust Funds Schedules 60-61 Exhibit No. Page No. Combining, Individual Fund and Account Group Statements and Schedules: General Fund: Balance Sheet A-1 62 Statement of Revenues, Expenditures, and Changes in Fund Balance A-2 63 Detail Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual A-3 64-68 Special Revenue Funds: Combining Balance Sheet B-1 69 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances B-2 70 Federal, State, and Local Grants - Combining Balance Sheet B-3 71 -72 Federal, State, and Local Grants - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances B-4 73-74 Budgeted Special Revenue Funds Totals - Detail Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual B-5 75 Municipal Aid Program Fund - Detail Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual B-6 76 Emergency Communication Service Fund - Detail Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual B-7 77 Court Awards Fund — Detail Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual B-8 78 Small Grant Fund - Detail Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual B-9 79 CDBG Fund - Detail Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual B-10 80 Hope 3 Implementation Grant Fund - Detail Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual B-11 81 Home Grant Fund - Detail Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual B-12 82 HUD Revolving Grant Fund - Detail Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual B-13 83 Paducah Housing Authority Police Grant Fund - Detail Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual B-14 84 Debt Service Fund: Balance Sheet C-1 85 Statement of Revenues, Expenditures, and Changes in Fund Balance C-2 86 Detail Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual C-3 87 l Exhibit No. Page No. Capital Project Funds: l Combining Balance Sheet D-1 88 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances D-2 89 Combining Statement of Revenues, 'F Expenditures, and Changes in Fund - , Balances - Budget and Actual D-3 90-91 Enterprise Funds: i Combining Balance Sheet E-1 92 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings E-2 93 ,- Combining Statement of Cash Flows E-3 94 Solid Waste Fund - Schedule of Operating Revenues and Expenses - Budget and Actual E-4 95 Civic Center Fund - Schedule of Operating Revenues and Expenses - Budget and Actual E-5 96 _ TISA Fund — Schedule of Operating Revenues and Expenses — Budget and Actual E-6 97 Internal Service Funds: Combining Balance Sheet F-1 98 Combining Statement of Revenues, Expenses, ` and Changes in Retained Earnings F-2 99 Combining Statement of Cash Flows F-3 100 Fleet Maintenance - Schedule of Operating Revenues and Expenses - Budget and Actual F-4 101 Fleet Lease Trust - Schedule of Operating Revenues and Expenses - Budget and Actual F-5 102 Insurance Fund - Schedule of Operating Revenues and Expenses - Budget and Actual F-6 103 Health Insurance Fund - Schedule of Operating Revenues and Expenses - Budget and Actual F-7 104 Trust and Agency Funds: Combining Balance Sheet G-1 105-106 Pension Trust Funds - Combining Statement of Changes in Plan Net Assets G-2 107 Oak Grove Cemetery Trust - Nonexpendable Trust Fund - Statement of Revenues, Expenses, and Changes in Fund Balances G-3 108 Oak Grove Cemetery Trust - Nonexpendable Trust Fund - Statement of Cash Flows G-4 109 - . Rinkleff Estate - Expendable Trust Funds - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances G-5 110 Agency Funds - Combining Statement of Changes in Assets and Liabilities G-6 111 General Fixed Asset Account Group: Comparative Schedules of General Fixed Assets by Source H-1 112 Schedule of General Fixed Assets by s Function and Activity H-2 113-114 - J Schedule of Changes in General Fixed Assets by Function and Activity H-3 115 Exhibit No. Page No. General Long -Term Debt Account Group: 136 Notes to the Schedule of Expenditures of Federal Statement of Changes in General Long -Term Awards 137 Debt Account Group I-1 116 Table No. Page No. Statistical Section: 138 Report on Compliance with Requirements Applicable General Government Expenditures by Function 1 117 General Revenue By Source 2 118 Tax Revenue by Source 3 119 Secured Tax Levies and Collections 4 120 Assessed and Estimated Actual Value of Taxable Property 5 121 Property Tax Rates - Direct and Overlapping Governments 6 122 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 7 123 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 8 124 Computation of Legal Debt Margin 9 125 Property Value, Construction, and Bank Deposits 10 126 Schedule of Sewer Revenue Bond Coverage 11 127 Demographic Statistics 12 128 Miscellaneous Statistical Data 13 129-130 Principal Taxpayers 14 131 Computation of Direct and Overlapping Debt 15 132 Police and Firefighter's Retirement Fund - Revenue by Source 16 133 Police and Firefighter's Retirement Fund — Expenses by Type 17 134 Summary of Insurance in Force 18 135 Single Audit Section: Schedule of Expenditures of Federal Awards 136 Notes to the Schedule of Expenditures of Federal Awards 137 Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 138 Report on Compliance with Requirements Applicable to each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133 139-140 Schedule of Findings and Questioned Costs 141 r-1 a _I 1 CITY OF PADUCAH, KENTUCKY r _l 1 INTRODUCTORY SECTION COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 309 2001 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 September 12, 2001 We are pleased to submit Paducah's Comprehensive Annual Financial Report for the year ended June 30, 2001. 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 and account groups. All disclosures necessary to enable the reader to gain maximum understanding of the City's financial activities have been included. This Comprehensive Annual Financial Report consists of four sections: Introductory Section, which contains the table of contents, a list of principal officials, an organizational chart for Paducah and this transmittal letter from the Finance Director; Financial Section, which includes the general purpose financial statements and provides an overview of Paducah's financial position and operating results, and the opinion of independent certified public accountants regarding our financial statements; Statistical Section, which includes a number of statistical tables that present various financial, economic, social and demographic data about Paducah for the last ten years; Sinde Audit Section, which includes required data in accordance with the Single Audit Act Amendments of 1996. IY;1D[y1614 Paducah was established in 1827 by explorer General William Clark and was named after local legendary Chickasaw Indian Chief "Paduke". The City of Paducah is situated on the southern bank of the Ohio River 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. Equal Opportunity Employer INDUSTRY The Paducah area has moved from the traditional "manufacturing industry" to a "service industry" economy. Multi -state computer services, significant bank holding 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 City's efforts in strengthening and building economic development activities is coordinated by the Greater Paducah Economic Development Council (GPEDC). 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, identifying and recruitment of 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. Several years ago, 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 is centered around 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 196 acres with immediate access to two major railroad lines, Paducah and Louisville and Illinois Central and Burlington Northern. The park is located within the southwest quadrant of the I-24/Cairo Road interchange. 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 Paducah Community College, a two year institution affiliated with the University of Kentucky's community college system. Paducah Community College 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. Business and technical skills training is offered by Western Kentucky Vocational School and Paducah Area Vocational School. 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 750 beds for medical needs. The two largest hospitals, together, employ approximately 3,000 persons. RECREATION AND CULTURE Area 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, soccer and picnicking. The Parks Services Department offers a substantial number of activities for people of all ages. -2- r-� The coming of spring in Paducah is highlighted by the Dogwood Festival, held in April. Local residents are encouraged to spotlight their trees to illuminate a driving tour to celebrate an abundance of dogwood trees. Paducah is the site of the American Quitter's Society's national museum. The museum, dedicated in 1991, is the centerpiece for the quilters' annual convention held in late April. The convention attracts an estimated 30,000 visitors to Paducah each year. 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 riverboat excursions, skydiving, hot air balloon races, a variety of music concerts, and usually concludes with a spectacular riverfront fireworks display. The Festival of Lights, started in 1992, is another annual event. This festival marks the beginning of the winter holiday season with the official lighting of the trees in downtown Paducah. One of the latest additions to Paducah's lineup of annual events is the "Barbecue on the River", started in 1995. It attracts in excess of 20,000 participants to Paducah's riverfront in late September. More recently, the "Festival of Murals" was initiated in 1997 as a June annual event. This event includes live concerts and a "Living History" presentation of Paducah's history as depicted in the murals painted on our floodwall. 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. The Community Concert Association annually schedules a series of concerts which brings some of the finest artists to the Paducah stage. In addition, Paducah Community College's "Focus" series sponsors a variety of professional productions. The McCracken County Public Library offers a large selection of literature, special collections and programs. This community resource is supplemented by the Paducah Community College Library. The combined inventories of the two libraries yield nearly 121,000 titles, not counting numerous periodicals and newspapers. THE GOVERNMENT Paducah operates under a 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 321 full-time employees as of June 30, 2001. 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. 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. The following component units have been presented as blended units because the units' governing body is substantially the same as the governing body of the City, or provides services almost entirely to the City of Paducah: the Paducah Public Improvement Corporation, whose sole purpose is to finance long-term debt; and Police and Firefighter's Pension Fund, which was established for the benefit of police and firemen of the City. -3- The following component units have been presented as discrete units to emphasize that they are legally separate from the City. Paducah Water Works, Transit Authority of the City of Paducah, Forest Hills Village, Inc., Paducah Power System and Paducah Junior College were all included in the City's financial statements because of their financial relationship with the City. 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, reserves, fund balances, revenues and expenditures. 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 available and measurable 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. II ►Y Y �I:ie". WOUNN-9 Ciel 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 and are generally held open for 30 days beyond the end of the fiscal year. Unencumbered funds at year end roll into the fund balance. GENERAL GOVERNMENT FUNCTIONS REVENUE Revenue for General Government functions (General Fund) totaled $23,610,174 in fiscal year 2001, an increase of 2.0% over fiscal year 2000. The amount of revenue from various sources, percent of total, and the increase or decrease from last year in dollars and as a percentage are shown in the following tabulation: -4- Increase (Decrease) FY 2001 Percent From FY 2000 Revenue Sources Amount of Total Dollar Amt Percent Taxes $ 4,736,568 20.07% $ 77,366 1.7% Licenses & Permits 16,705,030 70.75% 734,034 4.6% Charges for Services 578,482 2.45% 12,337 2.2% Grants 723,626 3.06% 243,089 -25.1% Interest 358,987 1.52% 27,777 -7.2% Miscellaneous 507,481 2.15% 96,130 -15.9% Total Revenue $23,610,174 100.0% $ 456,741 2.0% The most substantial increase in the revenue categories above in actual dollars is in `Licenses & Permits', which amounted to $734,034. Payroll tax increased $151,633, while insurance premium tax collections increased $447,948 over last year. Payroll tax revenue grew only 1.6 percent over last year due to a slow down in the economy. Insurance premium tax collections increased 15.1 percent or $447,948 over last year due in part to a recovery of one-time delinquent accounts. In fiscal year 1992, $2.28 million was received, and in fiscal year 1999, the revenue hit a high of $3.36 million, giving an average compounded growth rate of 5.7 percent a year. While the insurance premium tax hit an all time high in 1999, it subsequently hit a 7 -year low in 2000. Since 2000 was the current year's base year, the increase in 2001 over last year is somewhat misleading since year 2000 was substantially down from the normal level. While license revenue dollars grew the most, the `Grants' category decreased most dramatically as a percentage of change, 25.1 percent or $243,089. The Grants revenue decrease was caused primarily by the decrease in Police supplemental grants and FEMA funding decreases of $130,100 and $62,274, respectively. Revenues from interest income continue to steadily decline due to drops in interest rates and a declining reserve balance available for investment. EXPENDITURES Expenditures for General Fund functions totaled $19,626,987, an increase of 2.4% over fiscal year 2000. Increases and decreases in levels of expenditures by major functions compared to the preceding year are shown in the following tabulation: Increase (Decrease) FY 2001 Percent From FY 2000 Amount of Total Dollar Amt Percent General Government $ 3,386,330 17.3% $ 50,371 -1.5% Public Safety 10,530,012 53.7% 166,156 1.6% Public Service 4,872,587 24.8% 1,268,736 35.2% Recreation 738,401 3.8% 923,161 -55.6% Other 99,657 0.4% 4,575 4.8% Total Expenditures $19,626,987 100.0% $ 465,935 2.4% Expenditures experienced a net increase of 2.4 percent or $465,935 between fiscal year 2000 and fiscal year 2001, as compared to the decrease in spending between fiscal year 1999 and fiscal year 2000, of $551,799 or 2.8 percent. The fiscal year 1990 expenditure per capita was $447 and changed to $595 and $746 in fiscal year 1995 and fiscal year 2001, respectively. Per capita expenditures have increased approximately 4.8 per cent annually since fiscal year 1990. The fiscal year 2001 General Fund combined expenditures and transfers out per capita increased $37 per citizen from the fiscal year 2000 amount of $849. -5- The fiscal year 2001 budget process played a significant role in identifying spending trends, and that process should be carried over into fiscal year 2002. The fiscal year 2001 expenditures more accurately reflect all costs associated with the department which benefits from the expenditure. The single largest net change was in `Public Service' for $1,268,736. The majority of the change was caused by reorganization in the Public Works Department. The Recreation Department's Grounds and Cemetery Division was merged into the Public Works Landscape Maintenance Division, in order to consolidate all like maintenance functions. 1 The next largest expenditure change was for `Recreation' for a $923,161 decrease from last year. Recreation expenditures decreased, as mentioned earlier, due to operation adjustments. The Planning Department's Information Systems Division was spun off of Planning in fiscal year 2001. The Information Systems Department is now an autonomous department under the management of a director who reports directly to the City Manager. CASH MANAGEMENT Idle cash in the City's various funds, except for pension funds, is invested for terms ranging from overnight to 23 months to maturity depending upon liquidity needs. Police and Firefighter Pension Funds are handled by independent money managers. City deposits/investments are protected by FDIC insurance, Federal Home Loan Bank letters of credit, and pledged U.S Government securities. The amount of interest earned in fiscal year 2001 in the General Fund was $358,987, on rates varying from 3.45% to 6.85%. RISK MANAGEMENT In recent years, attention has been focused on safety in the workplace. Working with the Kentucky League of Cities (KLC) has produced numerous enhancements in worker safety. The City has selected various insurance coverages to mitigate potential risk, with premiums costing more than $765,000 and $860,000 in fiscal year 2001 and fiscal year 2000, respectively, for general liability, public officials liability, auto, law enforcement and workers compensation. CAPITAL IMPROVEMENTS 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 General Fixed Assets account group. During fiscal year 2001, projects and equipment expenditures totaled nearly $5.4 million. In the upcoming years, several street, bridge, economic development, and drainage projects will continue and are estimated to cost several million dollars. Capital improvement projects previously addressed in the City Sanitary Sewer Capital Improvement Plan were taken over by the Paducah -McCracken County Joint Sewer Board effective July, 1999. PENSION FUND MANAGEMENT The City of Paducah employees are covered by one of three retirement systems: (1) Police and Firefighters' Pension Fund (PFPF); (2) County Employees' Retirement System (CERS); and (3) Appointive Employees' Pension Fund (AEPF). The PFPF is a contributory defined benefit plan established by ordinance under State Statutes. Members contribute 8% of their gross earnings. The investments of this fund are managed by a six member board of trustees which utilizes AREA Bank as money managers. Monthly reports are received and monthly meetings are held with the money managers to review investment progress and strategy. In the past year, the PFPF had a net decrease of $568,625 with net assets valued at $11,346,120 on June 30, 2001. There were 8 active members and 109 retirees in this fund as of June 30, 2001. The most recent actuarial report prepared for the PFPF was as of July 1, 2001. -6- r� The CERS is a multiple employer cost sharing defined benefit plan administered by Kentucky Retirement System. Effective August 1, 1988, all but 21 active police and firefighters opted to transfer from the present plan to the County Employees Retirement System. Non -hazardous duty employees contribute 5% while hazardous duty employees contributed 7% until August 1, 1998. Hazardous duty employees contribute 8% effective August 1, 1998, due to a change in state pension law. The City contributed 7.17% for non -hazardous and 16.78% for hazardous duty employees in fiscal year 2001. The AEPF is a contributory defined benefit plan created by ordinance under State Statute. While there are no active members in the plan, there are 17 retirees receiving benefits from the fund. Beneficiaries are former non -hazardous duty municipal employees who retired prior to the statewide CERS plan. Funding was formerly provided by a special ad valorem tax, with any shortfall to be covered by a transfer from the City's General Fund. The AEPF had a net decrease of $11,189 in fiscal year 2001, with net assets valued as of June 30, 2001, of $361,438. SPECIAL REVENUE FUNDS Special revenue funds included in this report are the Court Awards Fund, Municipal Aid Program, Emergency Communication Service Fund, and Federal and State Grants. Revenues accounted for in these funds are restricted to specific purposes. PROPRIETARY FUNDS The City maintains eight proprietary funds which are: Wastewater/Stormwater, Solid Waste, Fleet Maintenance, Telecommunication Information System Authority (TISA), Civic Center, Fleet Lease Trust, Insurance and Health Insurance Funds. In fiscal year 1990, the Sanitation Fund and the Wastewater/Stormwater Fund were reclassified from General Government and established as proprietary funds. The City's fleet operation was broken out as a proprietary fund in fiscal year 1992 in order to more accurately reflect the true cost of the City's vehicle and equipment fleet maintenance program. The Civic Center's operation was converted into a proprietary fund in fiscal year 1993. In fiscal year 1999, the City set up two new funds called Fleet Lease Trust and Health Insurance Funds, in order to more accurately monitor the City's fleet lease program and health, dental and flexible benefits program, respectively. All these changes were made to better account for the cost of operations. The Wastewater/Stormwater Fund will phase out in fiscal year 2002, as accounts are settled with the Paducah - McCracken County Sewer Board. This board has taken over the planning, financing, operation and ,- maintenance of all county and city sewer systems. DEBT SERVICE FUND This fund is used to account for payment of general obligation indebtedness which includes debt associated with the Paducah Public Improvement Corporation and the Fifth Third Bank lease for fire department equipment. In fiscal year 1992, a $5.0 general obligations bond was added to the City's debt obligations, but was subsequently paid off entirely in 1997. A few of the more significant projects funded by the proceeds of this bond included the Downtown Riverfront Redevelopment Project ($1.5 million), Noble Park Pool and recreation facility building renovation ($133 million), Senior Citizen Center renovation ($416,640) and Annex renovation which houses the Emergency 911 Command Center ($214,165). Lease/debt payments were fully funded by the General Fund. In fiscal year 2001, since the Debt Service Fund is funding -dependent upon the General Fund, all excess funds were transferred to the General Fund. This one-time transfer was $591,720. -7- In June 2001, a $9.29 million general obligation bond was added to the City's debt obligation to finance construction of the Four Rivers Center for the Performing Arts and the expansion of the Julian Carroll Convention Center. 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 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. The total cash outlay requirements for debt service retirement, principal and interest, in fiscal year 2001 were $166,388. Below is a summary of all general long-term debt of the City of Paducah. Balance Net Balance July 1, 2000 Change June 30, 2001 General Obligation Bonds: Convention & Arts Center -0- $9,290,000 $ 9,290 000 General Fund accrued compensated absences $1,725,478 (434,683) 1,290,795 Capital lease: Fire Equipment 521,966 140,636 381,330 Totals $2,247,444 $8,714,681 $10,962,125 ECONOMIC CONDITIONS AND OUTLOOK The unemployment rate in McCracken County has been on a steady decline since 1983, when it peaked at 11.5%. The rate reported as of June, 2001, was 3.8%. The City has experienced growth in several areas in fiscal year 2001. In addition to continued retail growth in the Kentucky Oaks Mall area, the City's southside has also seen continued retail development in the area around the Wal-Mart SuperCenter. The Paducah Information Age Park added the Lynx System as a new business in the park in fiscal year 1999. The downtown area continues to be enhanced with the addition of new retail establishments, further expanding the property tax value base as well as the payroll tax base for the future. Downtown will be further enhanced with the construction of the Four Rivers Performing Center (FRC). The FRC is scheduled to begin construction in 2002 at a cost in excess of $30 million. The State of Kentucky contributed $20 million toward the project, with the balance of the cost funded locally by government, tourism tax increases and private donations. Over recent years, the Paducah Enterprise Zone Program has produced 180 qualified businesses which have pledged expenditures of $62.4 million in addition to creating 414 targeted jobs. 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 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 (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting for fiscal year ended June 30, 2000. This was the tenth year for Paducah to receive this prestigious award. -8- In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, the City published an easily readable and efficiently organized comprehensive annual financial report, the contents of which conform to program standards. The report satisfied 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 report continues to conform to program 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 to Williams, Williams & Lentz, LLP. We also thank the Mayor and City Commission for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, _ onathan W. Perkins, CPA Finance Director/Treasurer 10- Mayor Mayor Pro tem Commissioner Commissioner Commissioner Personnel Finance Police Chief Fire Chief City Engineer Planning Parks Services Inspections Public Works Information Services City Clerk CITY OF PADUCAH, KENTUCKY PRINCIPAL OFFICIALS BOARD OF COMMISSIONERS CITY MANAGER James Zumwalt -11- William F. Paxton Gerry Montgomery Robert Coleman Buz Smith Richard Abraham Dick Berry Jonathan Perkins, C.P.A. Randy Bratton Redell Benton Richard Murphy Thomas Barnett Mark Thompson Joel Scarbrough Bob Freudenthal Greg Mueller Lenita Smith 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, 2000 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. pPE OF - `UNOF ITED S1A y w MD m G""D" '� Pr sident W CORPORATION S Executive Director 12- COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 309 2001 J. RICHARD WALKER JERRY G. SEVERNS ROBERT R. ROBERTSON C. SUZETTE CRONCH ANNETTE T. RYAN MICHAEL F. KARNES MARK A. THOMAS ROGER G. HARRIS J. DAVID BAILEY, III G. LEON WILLIAMS H. WILLIAM LENTZ WILLIAMS, WILLIAMS & LENTz, LLP CERTIFIED PUBLIC ACCOUNTANTS 601 JEFFERSON - P.O. BOX 2500 PADUCAH, KENTUCKY 42002-2500 Independent Auditor's Report Honorable William F. Paxton, Mayor Members of the Board of Commissioners City of Paducah Paducah, Kentucky TELEPHONE AREA CODE 270 443-3643 We have audited the accompanying general purpose financial statements of the City of Paducah, Kentucky as of and for the year ended June 30, 2001, as listed in the table of contents. These general purpose financial statements are the responsibility of the management of the City of Paducah, Kentucky. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We did not audit the financial statements of the following component units: Paducah Water Works, Forest Hills Village, Inc., Paducah Power System, and Transit Authority of the City of Paducah, which represent 78 percent and 100 percent, respectively, of the assets and revenues of the Component Units column. Those financial statements were audited by other auditors whose reports have been furnished to us, and our opinion on the general purpose financial statements, insofar as it relates to the amounts included for Paducah Water Works, Forest Hills Village, Inc., Paducah Power System, and Transit Authority of the City of Paducah, discretely presented component units, is based on the reports of the 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, based on our audit and the reports of other auditors, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Paducah, Kentucky as of June 30, 2001, and the results of its operations and cash flows of its proprietary fund types and nonexpendable trust funds for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our reported dated September 12, 2001, on our consideration of the City of Paducah, Kentucky's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. -13- Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Paducah, Kentucky. 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 States, Local Governments, and Non -Profit Organizations, and is also not a required part of the general purpose financial statements of the City of Paducah, Kentucky. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. The Pension Trust Funds Schedules on pages 60 and 61 are not a required part of the general purpose financial statements, but are supplementary schedules required by the Governmental Accounting Standards Board. We have applied certain limited procedures prescribed by professional standards, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and do not express an opinion on it. September 12, 2001 -14- COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 309 2001 COMBINED STATEMENTS GENERAL PURPOSE FINANCIAL STATEMENTS (Combined Statements - Overview) These general purpose financial statements provide a summary overview of the financial position of all funds and account groups and the operating results of all funds. They also serve as an introduction to the more detailed statements and schedules that follow. Separate columns are used for each fund type and account group. l Exhibit 1 CITY OF PADUCAH, KENTUCKY COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS, AND DISCRETELY PRESENTED COMPONENT UNITS JUNE 30, 2001 The notes to the financial statements are an integral part of this statement. -15- Governmental Fund Types Proprietary ASSETS AND OTHER DEBITS Special Debt Capital General Revenue Service Projects Enterprise Cash and cash equivalents $2,233,626 $1,650,205 $ 1,434 $ 906,656 $ 745,219 Investments 2,568,830 650,000 - 9,600,000 900,000 Receivables: Accounts 84,510 77,925 - 144,840 44,286 Notes - - 232,833 - 168,500 Grants 76,319 164,398 - 126,930 - Interest 52,550 22,615 - 9,281 19,283 Property taxes (net of allowances for uncollectibles) - - - - - Due from other funds 346,734 - - - 13,009 Due from other taxing agencies - - - - - Other - - - - - Prepaid items - - - - - Inventory - - - - 359 Restricted assets - - - - - Other assets - - - - - Land - - - - 65,908 Buildings - - - - 324,882 _ Machinery and equipment - - - - 3,619,933 Utility plant - - - - - Less accumulated depreciation - - - - (2,497,611) Amount available in debt service funds - - - - - Amounts to be provided for: - Retirement of general long-term debt - - - - - TOTAL ASSETS AND OTHER DEBITS $5,362,569 $2,565,143 $234,267 $10,787,707 $3,403,768 The notes to the financial statements are an integral part of this statement. -15- ri Fiduciary Totals Totals Fund Types Fund Types Account Groups (Memorandum (Memorandum Trust General General Only) Only) Internal and Fixed Long -Term Primary Component Reporting Service Agency Assets Debt Government Units Entity $ 218,471 $ 1,793,833 $ - $ - $ 7,549,444 $ 3,196,800 $ 10,746,244 263,767 10,193,012 - - 24,175,609 395,187 24,570,796 178,364 - - - 529,925 2,710,153 3,240,078 - - - - 401,333 - 401,333 - - - - 367,647 - 367,647 5,487 75,832 - - 185,048 9,364 194,412 - 204,373 - - 204,373 - 204,373 - - - - 359,743 - 359,743 - 2,265 - - 2,265 - 2,265 - - - - - 938,292 938,292 - - - - - 54,912 54,912 133,278 - - - 133,637 1,184,044 1,317,681 - - - - - 11,769,435 11,769,435 - 1,047,537 1,047,537 - - 5,054,656 - 5,120,564 166,542 5,287,106 20,000 - 13,026,970 - 13,371,852 15,837,835 29,209,687 1,852,394 - 9,912,626 - 15,384,953 2,009,226 17,394,179 - - - - - 104,569,742 104,569,742 (615,360) _ 1 - - - (3,112,971) (41,616,728) (44,729,699) - - - 232,641 232,641 - 232,641 - - - 10,729,484 10,729,484 - 10,729,484 $2,056,401 $12,269,315 $27,994,252 $10,962,125 $75,635,547 $102,272,341 $177,907,888 (Continued) -16- CITY OF PADUCAH, KENTUCKY COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS, AND DISCRETELY PRESENTED COMPONENT UNITS JUNE 30, 2001 LIABILITIES, FUND EQUITY AND OTHER CREDITS Liabilities: Voucher and accounts payable Accrued payroll and payroll taxes Due to other funds Due to taxing agencies Deferred revenues Deferred compensation benefits payable Accrued compensated absences Liability for unpaid claims Other liabilities Accrued interest and matured interest coupons unpaid General obligation bonds payable Obligation under capital lease Revenue bonds payable Public improvement bonds payable Public improvement loan payable Total liabilities Fund Equity and Other Credits: Contributed capital Investment in general fixed assets and plant Retained earnings: Unreserved Reserved Fund balances: Reserved for employees' pension benefits Reserved for trust purposes Reserved for program purposes Reserved for capital improvements Reserved for scholarships and other Unreserved: Designated for debt service Designated for street improvement Undesignated Total fund equity and other credits TOTAL LIABILITIES, FUND EQUITY AND OTHER CREDITS Exhibit 1 (Continued) 1,133,192 713,503 1,627 953,302 425,499 - - - - 424,288 - - 2,553,981 604,021 - - - - - - 9,834,405 - - 232,640 - - - 1,080,254 - - 4,229,377 167,365 - - - 4,229,377 1,851,640 232,640 9,834,405 2,978,269 $5,362,569 $2,565,143 $234,267 $10,787,707 $3,403,768 The notes to the financial statements are an integral part of this statement. -17- Governmental Fund Types Proprietary Special Debt Capital General Revenue Service Projects Enterprise $ 377,868 $ 348,356 $ - $ 777,376 $ 328,936 502,596 30,649 - - 18,480 13,009 209,652 - - 24,685 3,162 124,846 1,283 175,926 - 236,557 - - - 53,398 - - 344 - - 1,133,192 713,503 1,627 953,302 425,499 - - - - 424,288 - - 2,553,981 604,021 - - - - - - 9,834,405 - - 232,640 - - - 1,080,254 - - 4,229,377 167,365 - - - 4,229,377 1,851,640 232,640 9,834,405 2,978,269 $5,362,569 $2,565,143 $234,267 $10,787,707 $3,403,768 The notes to the financial statements are an integral part of this statement. -17- $2,056,401 $12,269,315 $27,994,252 $10,962,125 $75,635,547 $102,272,341 $177,907,888 -18- Fiduciary Totals Totals Fund Types Fund Types Account Groups (Memorandum (Memorandum Trust General Genera7- Only) Only) Internal and Fixed Long -Term Primary Component Reporting Service Agency Assets Debt Government Units Entity $ 24,691 $ 240 $ - $ - $ 1,857,467 $ 3,170,855 $ 5,028,322 5,494 279,735 - - 836,954 362,574 1,199,528 10,406 101,991 - - 359,743 - 359,743 - 102,381 - - 102,381 - 102,381 - - - - 305,217 1,005,463 1,310,680 - - 139,416 139,416 47,530 - - 1,290,795 1,628,280 102,823 1,731,103 285,000 - - - 285,000 - 285,000 - - - - - 1,392,518 1,392,518 - - - - 344 145,947 146,291 - - - 9,290,000 9,290,000 • - 9,290,000 - - - 381,330 381,330 ' - 381,330 - - - - - 6,821,315 6,821,315 - - - - - 3,016,159 3,016,159 - - - - - 358,397 358,397 373,121 484,347 - 10,962,125 15,046,716 16,515,467 31,562,183 381,523 - - - 805,811 10,996,188 11,801,999 - - 27,994,252 - 27,994,252 14,129,034 42,123,286 1,301,757 - - - 3,855,738 52,763,661 56,619,399 - - - - - 49,875 49,875 - 119707,567 - - 11,707,567 - 11,707,567 - 649009 - - 64,009 - 64,009 - - - - 604,021 - 604,021 - - - - 9,834,405 - 99834,405 - - - - - 4,922,543 4,922,543 - - - - 232,640 - 232,640 - - - - 1,080,254 - 1,080,254 - 13,392 - - 4,410,134 2,895,573 7,305,707 1,683,280 11,784,968 27,994,252 - 60,588,831 85,756,874 146,345,705 $2,056,401 $12,269,315 $27,994,252 $10,962,125 $75,635,547 $102,272,341 $177,907,888 -18- Exhibit 2 CITY OF PADUCAH, KENTUCKY COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 2001 Revenues: Taxes Licenses Charges for services Intergovernmental Grants Interest Miscellaneous Total revenues Expenditures: Current: General government Public safety Public service Parks Planning and development Other Capital outlay Debt service: Principal requirement Interest and fiscal requirement Total expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses): Bond issue proceeds Operating transfers in Operating transfers out Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other uses Fund balances, July 1, 2000, as previously reported Adjustment to beginning fund balances FUND BALANCES, JUNE 30, 2001 Governmental Fund Types 3,386,330 - - - 10,530,012 1,049,642 - - 4,872,587 1,050,543 - 738,401 - - - - 2,784,725 - - 99,657 - - - - - - 3,850,565 19,626,987 4,884,910 3,983,187 (1,132,999) 591,720 Special Debt Capital General Revenue Service Projects $ 4,736,568 $ - $ - $ 144,840 16,705,030 - - - 578,482 753,798 - - - 450,412 - - 723,626 2,201,418 - 836,856 358,987 97,543 12,867 45,902 507,481 248,740 42,276 311,950 23,610,174 3,751,911 55,143 1,339,548 3,386,330 - - - 10,530,012 1,049,642 - - 4,872,587 1,050,543 - 738,401 - - - - 2,784,725 - - 99,657 - - - - - - 3,850,565 19,626,987 4,884,910 3,983,187 (1,132,999) 591,720 1,320,446 (4,276,337) (97,947) (3,684,617) 1,222,499 298,570 89,500 140,636 - 25,752 - 166,388 3,850,565 (111,245) (2,511,017) 9,104,211 - 1,720,701 (591,720) - (591,720) 10,824,912 (702,965) 8,313,895 3,930,807 1,730,479 935,605 1,520,510 - 31,661 - - $ 4,229,377 $1,851,640 $ 232,640 $9,834,405 The notes to the financial statements are an integral part of this statement. -19- 727 28,757,503 50 3,386,380 - 11,579,654 - 5,923,130 - 738,401 - 2,784,725 - 99,657 - 3,850,565 140,636 - 25,752 50 28,528,900 677 228,603 - 9,104,211 - 3,632,867 - (4,966,004) - 7,771,074 677 7,999,677 12,715 8,130,116 - 31,661 $13,392 $16,161,454 -20- Totals Fiduciary (Memorandum Fund Type Only) Expendable Primary Trust Government $ - $ 4,881,408 - 16,705,030 - 1,332,280 - 450,412 - 3,761,900 727 516,026 - 1,110,447 727 28,757,503 50 3,386,380 - 11,579,654 - 5,923,130 - 738,401 - 2,784,725 - 99,657 - 3,850,565 140,636 - 25,752 50 28,528,900 677 228,603 - 9,104,211 - 3,632,867 - (4,966,004) - 7,771,074 677 7,999,677 12,715 8,130,116 - 31,661 $13,392 $16,161,454 -20- Exhibit 3 CITY OF PADUCAH, KENTUCKY COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL, BUDGETED SPECIAL REVENUE, DEBT SERVICE, AND CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2001 The notes to the financial statements are an integral part of this statement. -21- General Fund Budgeted Special Variance - Favorable Revenues: Budget Actual (Unfavorable) Budget Actual Taxes $ 4,591,655 $ 4,736,568 $144,913 $ - $ - Licenses and permits 16,542,900 16,705,030 162,130 - - Charges for services 576,210 578,482 2,272 753,635 753,798 Intergovernmental - - - 450,405 450,412 Grants 692,380 723,626 31,246 712,315 765,286 Interest 358,985 358,987 2 73,060 89,831 Other 507,465 507,481 16 248,620 248,623 Total revenues 23,269,595 23,610,174 340,579 2,238,035 2,307,950 Expenditures: Current: General government 3,768,080 3,386,330 381,750 1,376,614 1,376,609 Public safety 10,542,420 10,530,012 12,408 1,049,905 1,049,642 Public service 4,873,045 4,872,587 458 1,050,545 1,050,543 Parks 738,590 738,401 189 - - Other 99,750 99,657 93 - - Principal requirement - - - - - Interest and fiscal requirement - - - - - Capital outlay - - - - - Total expenditures 20,021,885 19,626,987 394,898 3,477,064 3,476,794 Excess of revenues over (under) expenditures 3,247,710 3,983,187 735,477 (1,239,029) (1,168,844) Other Financing Sources (Uses): Bond issue proceeds - - - - - Operating transfers in 591,720 591,720 - 1,267,740 1,320,446 Operating transfers out (4,276,340) (4,276,337) 3 (97,951) (97,947) Total other financing sources (uses) (3,684,620) (3,684,617) 3 1,169,789 1,222,499 Excess of revenues and other financing sources over (under) expenditures and other uses $ (436,910) 298,570 $735,480 $ (69,240) 53,655 Fund balances, July 1, 2000 3,930,807 1,526,147 FUND BALANCES, JUNE 30, 2001 $ 4,229,377 $1,579,802 The notes to the financial statements are an integral part of this statement. -21- Revenue Funds Debt Service Fund Capital Projects Funds Variance- Variance- Variance - Favorable Favorable Favorable (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ $ - $ - $ - $ - $ 144,840 $144,840 163 7 - - - - - 52,971 - - 836,855 836,856 1 16,771 30,885 12,867 (18,018) 41,475 45,902 4,427 3 42,275 42,276 1 311,955 311,950 (5) 69,915 73,160 55,143 (18,017) 1,190,285 1,339,548 149,263 5 263 2 - - - - - 140,640 140,636 4 - 25,760 25,752 8 - _ - - - - - 3,850,570 3,850,565 5 270 166,400 166,388 12 3,850,570 3,850,565 5 70,185 (93,240) (111,245) (18,005) (2,660,285) (2,511,017) 149,268 - - 9,023,015 9,1.04,211 81,196 52,706 - - - 1,833,880 1,720,701 (113,179) 4 (609,740) (591,720) 18,020 52,710 (609,740) (591,720) 18,020 10,856,895 10,824,912 (31,983) $122,895 $(702,980) (702,965) 935,605 $ 232,640 $ 15 $8,196,610 -22- 8,313,895 $117,285 1,520,510 $9,834,405 CITY OF PADUCAH, KENTUCKY COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS/FUND BALANCES - ALL PROPRIETARY FUND TYPES, NONEXPENDABLE TRUST FUNDS, AND SIMILAR DISCRETELY PRESENTED COMPONENT UNITS YEAR ENDED JUNE 30, 2001 Operating Revenues: Charges for services Intergovernmental Other Total operating revenues Operating Expenses: Cost of sales Investment fees and administrative Depreciation and amortization Total operating expenses Operating income (loss) Nonoperating Revenues (Expenses): Grants Investment income Gain (loss) on disposal of property and equipment Interest expense Other Amortization Total nonoperating revenues (expenses) Income (loss) before operating transfers Operating Transfers In (Out): Operating transfers in Operating transfers out Total operating transfers in (out) Net income (loss) Other Changes in Retained Earnings: Depreciation on property and equipment funded by contributed capital Transfer to contributed capital Retained earnings/fund balances, July 1, 2000 RETAINED EARNINGS/FUND BALANCES, Exhibit 4 22,541 575,129 - (520) - - 22,021 575,129 - 94,791 32,498 5,608 53,427 - - 2,405,763 1,269,259 58,401 JUNE 30, 2001 $2,553,981 $1,301,757 $64,009 The notes to the financial statements are an integral part of this statement. -23- Fiduciary Fund Proprietary Fund Types Type Internal Nonexpendable Enterprise Service Trust $3,280,089 $3,827,371 $ - - - 2,590 6,164 - - 3,286,253 3,827,371 2,590 2,898,180 4,180,437 - - - 221 391,277 224,380 - 3,289,457 4,404,817 221 (3,204) (577,446) 2,369 79,939 16,957 3,239 (3,965) (609) - - 18,467 - 75,974 34,815 3,239 72,770 (542,631) 5,608 22,541 575,129 - (520) - - 22,021 575,129 - 94,791 32,498 5,608 53,427 - - 2,405,763 1,269,259 58,401 JUNE 30, 2001 $2,553,981 $1,301,757 $64,009 The notes to the financial statements are an integral part of this statement. -23- Totals 459,747 Totals (Memorandum - (Memorandum Only) (685,567) Only) Primary Component Reporting Government Units Entity $7,107,460 $47,763,150 $54,870,610 2,590 - 2,590 6,164 - 6,164 7,116,214 47,763,150 54,879,364 7,078,617 221 615,657 7,694,495 (578,281) 100,135 (4,574) 18,467 114,028 (464,253) 597,670 (520) 597,150 132,897 53,427 3,733,423 43,591,576 50,670,193 - 221 3,395,740 4,011,397 46,987,316 54,681,811 775,834 197,553 459,747 459,747 511,559 611,694 - (4,574) (685,567) (685,567) 252,844 271,311 (97,844) (97,844) 440,739 554,767 1,216,573 752,320 1,216,573 98,294 (34,083) 51,532,752 597,670 (520) 597,150 1,349,470 151,721 (34,083) 55,266,175 $3,919,747 $52,813,536 $56,733,283 -24- CITY OF PADUCAH, KENTUCKY COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES, NONEXPENDABLE TRUST FUNDS, AND SIMILAR DISCRETELY PRESENTED COMPONENT UNITS YEAR ENDED JUNE 30, 2001 Cash Flows from Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation and amortization Provision for losses on accounts receivable (Increase) decrease in: Receivables Inventories Other assets Increase (decrease)in: Accounts payable and accrued expenses Net cash provided (used) by operating activities Cash Flows from Noncapital Financing Activities: Operating transfers from other funds Operating transfers to other funds Operating grants received Net cash provided (used) by noncapital financing activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Interest paid on bonds and public improvement debt Interest paid on long-term debt Contributed capital Proceeds from sale of capital assets Principal paid on bond maturities and public improvement debt Principal paid on long-term debt Capital grant funding Net cash provided (used) by capital and related financing activities Cash Flows from Investing Activities: Purchase of investment securities Proceeds from sales and maturities of investment securities Investment income Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, July 1, 2000 CASH AND CASH EQUIVALENTS, JUNE 30, 2001 (Includes restricted assets of enterprise fund) Reconciliation of Cash and Cash Equivalents to the Balance Sheet: Total cash and cash equivalents per the balance sheet Less: Pension trust, expendable trust and agency fund cash and cash equivalents, statement of cash flows not required Add: Adjustment for restricted and short-term investments Total cash and cash equivalents per statement of cash flows Non -Cash Capital and Related Financing Activities: Net increase in fair value of investments The notes to the financial statements are an integral part of this statement. -25- Exhibit 5 Proprietary Fund Types Internal Enterprise Service $ (3,204) $ (577,446) 391,277 224,380 119,737 144,587 - 3,451 8.813 219.029 516,623 14,001 22,541 575,129 (520) - 22,021 575,129 (146,467) (588,210) 461 18,467 (146,006) (569,743) (400,000) (13,767) 79,939 16,957 (320,061) 3,190 72,577 22,577 672,642 195,894 $ 745,219 $ 218,471 $ 745,219 $ 218,471 $ 745,219 $ 218,471 -26- Totals Totals (Memorandum (Memorandum Fiduciary Fund Type Only) Only) Nonexpendable Primary Component Reporting Trust Government Units Entity r $ 2,369 $ (578,281) $ 775,834 $ 197,553 - 615,657 3,395,740 4,011,397 - - 163,632 163,632 - 264,324 349,694 614,018 1 - 3,451 24,373 27,824 - - (103,689) (103,689) - 227,842 (378,055) (150,213) r 2,369 532,993 4,227,529 4,760,522 - 597,670 - 5973670 - (520) - (520) - - 594,393 594,393 - 597,150 594,393 1,191,543 - (734,677) (4,309,410) (5,044,087) - - (680,474) (680,474) - - (5,093) (5,093) - - - 143,074 143,074 ' - 18,928 51,846 70,774 - - (1,025,827) (1,025,827) - - (4,066) (4,066) - - 34,083 34,083 - (715,749) (5,795,867) (6,511,616) (16,308) (430,075) (2,242,009) (2,672,084) 15,000 15,000 2,511,548 2,526,548 4,283 101,179 511,559 612,738 2,975 (313,896) 781,098 467,202 5,344 100,498 (192,847) (92,349) 7,741 876,277 4,172,184 5,048,461 $ 13,085 $ 976,775 $3,979,337 $4,956,112 $1,793,833 $2,757,523 $3,106,892 $5,864,415 (1,780,748) (1,780,748) - (1,780,748) ' - - 872,445 872,445 $ 13,085 $ 976,775 $3,979,337 $4,956,112 $ 2,041 $ 2,041 $ - $ 2,041 -26- CITY OF PADUCAH, KENTUCKY PENSION TRUST FUNDS STATEMENT OF CHANGES IN PLAN NET ASSETS YEAR ENDED JUNE 30, 2001 Additions: Contributions: Employer Plan member Interfund transfers Total contributions Net investment income Total additions Deductions: Benefits Administrative expense Total deductions Net decrease Net assets held in trust for pension benefits: July 1, 2000 JUNE 30, 2001 The notes to the financial statements are an integral part of this statement. -27- 1 Exhibit 6 $ 204,039 28,482 735,987 968,508 321,598 1,290,106 1,846,407 23,513 1,869,920 (579,814) 12,287,381 $11,707,567 Exhibit 7 CITY OF PADUCAH, KENTUCKY PADUCAH JUNIOR COLLEGE, INCORPORATED STATEMENT OF CURRENT FUNDS REVENUE, EXPENDITURES, AND OTHER CHANGES YEAR ENDED JUNE 30, 2001 The notes to the financial statements are an integral part of this statement -28- Current Year Revenues: Unrestricted Restricted Total Local appropriations $ 677,588 $ - $ 677,588 Expired term endowments 165,039 - 165,039 Local grants and contracts 70,000 - 70,000 Sales and services of educational activities 61,203 - 61,203 Other sources 25,495 - 25,495 Total current revenues 999,325 - 999,325 Expenditures and Nonmandatory Transfers: Educational and general: Public service 63,105 - 63,105 Academic support 45,271 - 45,271 Student services 15,742 - 15,742 Institutional support 331,753 - 331,753 Operation and maintenance of plant 89,990 - 89,990 Scholarship and fellowships 150,926 - 150,926 - Total educational and general 696,787 - 696,787 Nonmandatory transfers to/(from) for: Additions to plant and equipment 183,965 - 183,965 Unexpended plant - restricted 300,000 - 300,000 Quasi -endowment funds appropriated (43,606) - (43,606) Total nonmandatory transfers 440,359 - 440,359 Total expenditures and nonmandatory transfers 1,137,146 - 1,137,146 J NET INCREASE (DECREASE) IN FUND BALANCES $(137,821) $ - $(137,821) The notes to the financial statements are an integral part of this statement -28- CITY OF PADUCAH, KENTUCKY PADUCAH JUNIOR COLLEGE, INCORPORATED STATEMENT OF CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2001 Revenues and Other Additions: Current fund revenues State grants Endowments Private gifts - restricted Private gifts - unrestricted Expired term endowment -restricted Investment income -restricted Realized gains (losses) on investments: Restricted Unrealized losses on investments: Restricted Total revenues and other additions Expenditures and Other Deductions: Educational and general expenditures Expended for plant facilities Depreciation of plant facilities Expired term endowments Total expenditures and other deductions Transfers Among Funds - Additions/ (Deductions): Nonmandatory transfers for: Additions to plant and equipment Unexpended plant - restricted Quasi -endowment funds appropriated Total transfers among funds - additions/(deductions) Net increase/(decrease) for the year Fund balances at beginning of year FUND BALANCES AT END OF YEAR Exhibit 8 Current Funds Loan Unrestricted Restricted Funds $ 834,286 $ - $ - 165,039 - - - - 133 999,325 - 133 696,787 - - 696,787 - - (183,965) - - (300,000) - - 43,606 - - (440,359) - - (137,821) - 133 545,756 - 16,471 $ 407,935 $ - $16,604 The notes to the financial statements are an integral part of this statement. -29- - - 441,921 170,265 - - 170,265 - 441,921 (17,706) Plant Funds Endowment and Investment in Similar Funds Unexpended Plant (423,606) 380,000 - 150,000 - 16,783 - - 133,723 956,336 - 18,750 - - - - 5,226 334,328 78,089 - 111,021 (1,590) - (316,623) 73315 - 297,982 1,190,150 53226 - - 441,921 170,265 - - 170,265 - 441,921 (17,706) - 201,671 - 300,000 - (423,606) 380,000 - (441,312) 680,000 201,671 (313,595) 1,870,150 (235,024) 4,980,460 856,562 14,364,058 $ 4,666,865 $ 2,726,712 $14,129,034 -30- ASSETS Cash and cash equivalents Investments available for sale, at fair value Investments, restricted Receivables: Accounts Interest Other Prepaid items Inventory Restricted assets Other assets Land Buildings Furniture Machinery and equipment Utility plant Less accumulated depreciation TOTAL ASSETS Exhibit 9 CITY OF PADUCAH, KENTUCKY DISCRETELY PRESENTED COMPONENT UNITS COMBINING BALANCE SHEET JUNE 30, 2001 Paducah Paducah Paducah Water Transit Forest Power Works Authority Hills System $ 1,350,565 $ 401,104 $ 706,864 $ 648,359 3,157,653 - 49,875 1,797,146 322,191 3,520 - 2,379,442 - - 2,013 7,351 - 205,156 16,386 388,083 - - 9,108 45,804 420,469 7,529 10,549 745,497 63,381 - - 790,325 - - 87,720 - 9,100 - 15,409 - 164,982 - - - 1,435,209 293,506 - 47,825,110 - - 56,744,632 (17,614,711) (1,075,892) (219,930) (21,007,982) $36,314,983 $1,150,708 $ 868,371 $41,851,461 The notes to the financial statements are an integral part of this statement. -31- -32- (Continued) Paducah Junior College Totals $ 89,908 $ 3,196,800 395,187 395,187 6,701,380 11,706,054 5,000 2,710,153 j - 9,364 328,667 938,292 - 54,912 - 1,184,044 - 63,381 169,492 1,047,537 142,033 166,542 15,672,853 15,837,835 280,511 280,511 - 1,728,715 - 104,569,742 (1,698,213) (41,616,728) $22,086,818 $102,272,341 -32- (Continued) CITY OF PADUCAH, KENTUCKY DISCRETELY PRESENTED COMPONENT UNITS COMBINING BALANCE SHEET JUNE 30, 2001 LIABILITIES, FUND EQUITY AND OTHER CREDITS Liabilities: Voucher and accounts payable Accrued payroll and payroll taxes Deferred revenues Deferred compensation benefits payable Accrued compensation absences Other liabilities Accrued interest payable Revenue bonds payable Public improvement bonds payable Public improvement loan payable Total liabilities Fund Equity and Other Credits: Contributed capital Investment in general fixed assets and plant Retained earnings (deficit): Unreserved Reserved for tenant deposits Fund balances: Reserved for scholarships and other Unreserved: Undesignated Total fund equity and other credits TOTAL LIABILITIES, FUND EQUITY AND OTHER CREDITS Exhibit 9 (Continued) Paducah Paducah Paducah Water Transit Forest Power Works Authority Hills System $ 176,183 $ 12,732 $ 12,949 $ 2,968,739 - 24,218 10,694 327,662 - - 9,453 996,010 - 13,719 89,104 - 832,702 85,594 53,675 420,547 - - - 145,947 6,821,315 - - - - - - 3,016,159 358,397 - - - 8,188,597 136,263 175,875 7,875,064 10,632,686 363,502 - - 17,493,700 650,943 642,621 33,976,397 - - 49,875 - 28,126,386 1,014,445 692,496 33,976,397 $ 36,314,983 $1,150,708 $868,371 $41,851,461 The notes to the financial statements are an integral part of this statement. -33- Paducah 10,996,188 Junior 14,129,034 College Totals $ 252 $ 3,170,855 - 362,574 - 1,005,463 139,416 139,416 - 102,823 - 1,392,518 - 145,947 - 6,821,315 - 3,016,159 - 358,397 139,668 16,515,467 - 10,996,188 14,129,034 14,129,034 - 52,763,661 - 49,875 4,922,543 4,922,543 2,895,573 2,895,573 85,756,874 $22,086,818 $102,272,341 -34- THIS PAGE INTENTIONALLY LEFT BLANK Exhibit 10 r CITY OF PADUCAH, KENTUCKY DISCRETELY PRESENTED COMPONENT UNITS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS - PROPRIETARY FUND TYPES YEAR ENDED JUNE 30, 2001 The notes to the financial statements are an integral part of this statement. -35- Paducah Paducah Paducah Water Transit Forest Power Operating Revenues: Works Authority Hills System Totals Charges for services $ 5,750,988 $2,270,874 $1,219,920 $38,521,368 $47,763,150 Operating Expenses: Cost of sales 3,987,988 2,705,195 1,110,446 35,787,947 43,591,576 Depreciation and amortization 1,139,401 125,315 27,864 2,103,160 3,395,740 Total operating expenses 5,127,389 2,830,510 1,138,310 37,891,107 46,987,316 Operating income (loss) 6239599 (559,636) 81,610 630,261 775,834 Nonoperating Revenues (Expenses): Investment income 313,818 14,251 33,105 150,385 511,559 Interest expense (405,342) (5,093) - (275,132) (685,567) Amortization of deferred debit (59,211) - - - (59,211) Grants - 459,747 - - 459,747 Amortization (38,633) - - - (38,633) Other 63,425 189,419 - - 252,844 ' Total nonoperating revenues (expenses) (125,943) 658,324 33,105 (124,747) 440,739 Net income (loss) 497,656 98,688 114,715 505,514 1,216,573 Other Changes in Retained Earnings: Depreciation allocable to contributed capital - 98,294 - - 98,294 Transfer to contributed capital - (34,083) - - (34,083) Retained earnings, July 1, 2000 16,996,044 488,044 577,781 33,470,883 51,532,752 RETAINED EARNINGS, JUNE 30, 2001 $17,493,700 $ 650,943 $ 692,496 $33,976,397 $52,813,536 The notes to the financial statements are an integral part of this statement. -35- CITY OF PADUCAH, KENTUCKY DISCRETELY PRESENTED COMPONENT UNITS COMBINING STATEMENT OF CASH FLOWS - PROPRIETARY FUND TYPES YEAR ENDED JUNE 30, 2001 Cash Flows from Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation and amortization Provision for losses on accounts receivable (Increase) decrease in: Receivables Inventories Other assets Increase (decrease)in: Accounts payable and accrued expenses Net cash provided (used) by operating activities Cash Flows from Noncapital Financing Activities: Operating grants received Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Interest paid on bonds and public improvement debt Interest paid on long-term debt Contributed capital Capital grant funding Proceeds from sale of capital assets Principal paid on long-term debt Principal paid on bond maturities and public improvement debt Net cash provided (used) by capital and related financing activities Cash Flows from Investing Activities: Purchase of investment securities Proceeds from sales and maturities of investment securities Investment income Net cash provided (used) by investing activities Net increase (decrease)in cash and cash equivalents Cash and cash equivalents, July 1, 2000 CASH AND CASH EQUIVALENTS, JUNE 30, 2001 Exhibit 11 Paducah Paducah Water Transit Forest Works Authority Hills $ 623,599 $ (559,636) $ 81,610 1,139,401 125,315 27,864 (3,546) (30,396) (2,671) 47,033 3,644 1,616 34,218 28,692 282 (19,459) (49,872) 6,075 1,821,246 (482,253) 114,776 - 594,393 - (1,077,629) (41,731) (24,077) (405,342) - - - (5,093) - 143,074 - - - 34,083 - 51,846 - - - (4,066) - (755,910) - - (2,043,961) (16,807) (24,077) (2,261,490) - - 2,511,548 - - 313,818 14,251 33,105 563,876 14,251 33,105 341,161 109,584 123,804 1,009,404 291,520 583,060 $1,350,565 $ 401,104 $ 706,864 Reconciliation of Cash and Cash Equivalents to the Balance Sheet: Total cash and cash equivalents per the balance sheet $1,350,565 $ 401,104 $ 706,864 Adjustment for restricted cash and short-term investments - - - TOTAL CASH AND CASH EQUIVALENTS PER STATEMENT OF CASH FLOWS $1,350,565 $ 401,104 $ 706,864 The notes to the financial statements are an integral part of this statement. -36- Paducah Totals Power (Memorandum System Only) $ 630,261 $ 775,834 2,103,160 3,395,740 163,632 163,632 386,307 349,694 (27,920) 24,373 (166,881) (103,689) (314,799) (378,055) 2,773,760 4,227,529 - 594,393 (3,165,973) (4,309,410) (275,132) (680,474) - (5,093) - 143,074 - 34,083 - 51,846 - (4,066) (269,917) (1,025,827) (3,711,022) (5,795,867) 19,481 (2,242,009) - 2,511,548 150,385 511,559 169,866 781,098 (767,396) (192,847) 2,288,200 4,172,184 $ 1,520,804 $ 3,979,337 $ 648,359 $ 3,106,892 872,445 872,445 $ 1,520,804 $ 3,979,337 -37- COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 309 2001 CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 1- Summary of Significant Accounting Policies: The accounting policies of the City of Paducah (City) conform to generally accepted accounting principles as applicable to governmental units as prescribed by the Governmental Accounting Standards Board (GASB). 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 The following component units have been presented as blended component units because the component unit's governing body is substantially the same as the governing body of the City, or the component unit provides services almost entirely to the primary government. Paducah Public Improvement Corporation - The Mayor and Commissioners serve as the governing body for the Corporation. Although it is legally separate from the City, the Paducah Public Improvement Corporation is reported as if it were part of the primary government because its sole purpose is to finance long-term debt since the City may not legally obligate itself beyond one year. - Police and Firefighters' Retirement 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 combined 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. 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) -38- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 1- Summary of Significant Account Policies: Discretely Presented Component Units Forest Hills Village, Inc. - The Corporation's Board is appointed by the City, and their only 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. Paducah Power System - The members of the Electric Plant Board are appointed by the Mayor. The system provides a financial benefit to the City through a payment in lieu of taxes. Paducah Junior Co.11eEe, Incorporated - The Board of Trustees of the junior college are appointed by the Mayor. 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 a 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. The financial statements of Paducah Junior College have been prepared using the accrual basis of accounting as defined by the AICPA Industry Guide for Colleges and Universities. Complete financial statements of the individual component units can be obtained from their respective administrative offices in the following locations: Paducah Water Works 401 Washington Street Paducah, Kentucky 42003 Transit Authority of the City of Paducah 500 Clark Street Paducah, Kentucky 42003 Forest Hills Village, Inc. 238 Highland Boulevard Paducah, Kentucky 42003 Paducah Power System 1500 Broadway Paducah, Kentucky 42001 Paducah Junior College, Incorporated 4810 Blandville Road Paducah, Kentucky 42001 Effective on July 1, 2000, pursuant to an ordinance of the City of Paducah, the Paducah Public Library ceased to exist and transferred all assets to the McCracken County Library Taxing District. All aspects of operation of the Paducah Public Library were transferred to the McCracken County Library Taxing District, which is under the management and control of a five member Board of Trustees as appointed by the McCracken County Fiscal Court pursuant to an ordinance. The new entity is not a component unit of the City. Related Organizations City officials are also responsible for appointing the members of boards of other organizations, but the City's accountability for these organizations does 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. (Continued) -39- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 1- Summary of Significant Accounting Policies: Related Organizations 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. Basis of Presentation, Fund Accounting The government uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self -balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. Funds are classified into three categories: governmental, proprietary, and fiduciary. Each category, in turn, is divided into separate "fund types". Account groups are classified into General Fixed Assets and General Long -Term Debt. Governmental Funds are used to account for all or most of a government's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general fixed assets (capital projects funds), and the servicing of general long-term debt (debt service funds). The general fund is used to account for all activities of the general government not accounted for in some other fund. The funds comprising the governmental funds are as follows: General Fund: (there is only one general fund). Special Revenue Funds: Municipal Aid, Emergency Communication Service Fund, Court Awards Fund, and Federal State, and Local Grants. Debt Service Fund: Public Improvement Bonds, Public Improvement Notes, and Capital Lease. Capital Project Funds: General Capital Improvements and Downtown Capital Improvements. Proprietary Funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the government (internal service funds). The various enterprise funds of the City are as follows: Solid Waste, Wastewater/Stormwater, Civic Center, and Telecommunications and Information Systems Authority (TISA) The internal service funds of the City are as follows: Fleet Maintenance, Fleet Lease Trust, Insurance Fund, and Health Insurance Fund (Continued) CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 1 - Summary of Significant Accounting Policies: Basis of Presentation, Fund Accounting Trust and Agency Funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the government. When these assets are held under the terms of a formal trust agreement, either a pension trust fund, a nonexpendable trust fund or an expendable trust fund is used. The terms "nonexpendable" and "expendable" refer to whether the government is under an obligation to maintain the trust principal. Agency funds generally are used to account for assets that the government holds on behalf of others as their agent. The funds included in this group are: Police and Firefighters' Retirement (Pension Trust), Appointive Employees' Pension Fund (Pension Trust), Oak Grove Cemetery Trust (Nonexpendable Trust), Rinkleff Estate (Expendable Trust), Property Taxes (Agency), and Payroll Fund (Agency). Fixed Assets and Long -Term Debt accounting and reporting applications with respect to a fund are determined by its measurement focus. All Governmental Funds and Expendable Trust Funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources". Governmental Fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks and lighting systems are not capitalized along with other general fixed assets. Depreciation is not provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair market value on the date donated. Long-term debt expected to be financed from governmental funds are accounted for in the General Long -Term Debt Account Group, not in the governmental funds. The two account groups are not "funds". They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are, instead, reported as liabilities in the General Long -Term Debt Account Group. (Continued) -41- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 1- Summary of Significant Account Policies: Basis of Presentation, Fund Accounting All proprietary funds and nonexpendable trust and pension trust funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. Depreciation of all exhaustible fixed assets used by propriety funds is charged as an expense against their operations. Accumulated depreciation is reported on proprietary fund balance sheets. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: Buildings 50 Years Utility plant 40-60 Years Improvements 10-20 Years Equipment 5-25 Years Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on a balance sheet. Operating statements of these funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. All proprietary funds, nonexpendable trust funds and pension trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund -type operating statements present increases (revenues) and decreases (expenses) in net total assets. The modified accrual basis of accounting is used by all governmental fund types, expendable trust funds and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon thereafter to be used to pay liabilities of the current period. The City considers taxes as available if they are collected within 60 days after year end. A one-year availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year. Those revenues susceptible to accrual are taxes, intergovernmental, employer and employees' contributions to trust funds, interest revenue and charges for services. License and permit revenues are not susceptible to accrual because generally they are not measurable until received in cash. (Continued) -42- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 1- Summary of Significant Accountine Policies: Basis of Accounting The accrual basis of accounting is utilized by proprietary fund types, pension trust funds and nonexpendable trust funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Pension Plan member and employer contributions are recognized in the period in which the contributions are due. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred 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 revenue is removed from the combined balance sheet and revenue is recognized. Budgets and Budgetary Accounting The City follows these procedures in establishing the budgetary data reflected in these financial statements: 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 them. 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. Formal budgetary integration is employed as a management control device during the year and annual budgets have been legally adopted for the General Fund, Emergency Communication Service Fund, Municipal Aid Fund, Court Awards Fund, General Capital Improvements, Downtown Capital Improvements, TISA Fund, Solid Waste Fund, Wastewater/Stormwater Fund, Civic Center Fund, Fleet Maintenance, Insurance Fund, and Health Insurance Fund. 6. Budgets are adopted on a basis consistent with GAAP. The City does not budget the Section Eight Housing Special Revenue Fund and, accordingly, the applicable columns of the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Exhibit 3) exclude amounts relating to the unbudgeted fund. The City does legally adopt budgets for certain special revenue funds including the Municipal Aid Program Fund, Emergency Communication Service Fund, Court Awards Fund, and all federal, state, and local grant funds. A reconciliation of actual results for budgeted and unbudgeted Special Revenue Funds follows: (Continued) -43- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 1- Summary of Significant Accounting Policies: Budgets and Budgetary Accounting Revisions made to the original expenditure budget (including operating transfers out) for each fund were as follows: General Fund Special Revenue Funds: Municipal Aid Program Emergency Communication Service Fund Court Awards Fund Small Grant Fund CDBG Grant Fund HOPE 3 Implementation Grant Fund Home Grant Fund HUD Revolving Fund Paducah Housing Authority Police Grant Fund Debt Service Fund Capital Projects Funds: General Capital Improvements Downtown Capital Improvements Enterprise Funds: Solid Waste Fund Civic Center Fund TISA Fund Internal Service Funds: Fleet Maintenance Fleet Lease Trust Insurance Fund Health Insurance Fund TOTALS -44- Original Total Other Budget Revisions Budget Financing Fund $24,298,225 827,630 Sources Balance 1,043,280 Revenues Expenditures (Uses) June 30, 2001 Budgeted funds $2,307,950 $3,476,794 $1,222,499 $1,579,802 Unbudgeted fund: 853,725 97,735 951,460 Section Eight Housing 1,443,961 1,408,116 - 271,838 i TOTALS 467,560 iL=2 499 640 IL&51-640 r Presented budget amounts are originally adopted, or as amended by the City Commission. ' Appropriations lapse at year end; however, uncompleted capital projects may be reaPPro riated at the beginning of each fiscal year. 3,675,700 (328,255) 3,347,445 Revisions made to the original expenditure budget (including operating transfers out) for each fund were as follows: General Fund Special Revenue Funds: Municipal Aid Program Emergency Communication Service Fund Court Awards Fund Small Grant Fund CDBG Grant Fund HOPE 3 Implementation Grant Fund Home Grant Fund HUD Revolving Fund Paducah Housing Authority Police Grant Fund Debt Service Fund Capital Projects Funds: General Capital Improvements Downtown Capital Improvements Enterprise Funds: Solid Waste Fund Civic Center Fund TISA Fund Internal Service Funds: Fleet Maintenance Fleet Lease Trust Insurance Fund Health Insurance Fund TOTALS -44- Original Total Revised Budget Revisions Budget $24,883,420 $(585,195) $24,298,225 827,630 222,915 1,050,545 1,043,280 (194,160) 849,120 25,000 16,020 41,020 60,000 ( 35,660) 24,340 853,725 97,735 951,460 100,000 (100,000) - 1,181,940 (714,380) 467,560 75,000 ( 43,960) 31,040 150,000 9,930 159,930 172,690 603,450 776,140 3,675,700 (328,255) 3,347,445 - 503,125 503,125 3,305,000 31,325 3,336,325 48,375 ( 4,785) 43,590 144,540 ( 32,615) 111,925 391,850 ( 21,485) 370,365 641,630 (429,285) 212,345 882,800 ( 54,520) 828,280 2,524,040 471,335 2.995.375 40,986.620 88 465) $40.198155 (Continued) CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 1- Summary of Significant Accounting Policies: Budgets and Budgetary Accounting 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, 2001. 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. Investments Investments are reported at fair value which is determined using selected bases. Short-term investments are reported at cost, which approximates fair value. Inventories Inventories are stated at cost on a first -in, first -out basis. Property Tax 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 recognized when levied to the extent that they result in current receivables in accordance with GASB Statement 1, Revenue Recognition - Property Taxes. The due dates and collection period for all property taxes, exclusive of vehicle taxes, for the fiscal year ended June 30, 2001, are as follows: Description Assessment and enforceable lien Levy Face value amount payment dates Delinquent date - 10% penalty plus 1/2% per month Compensated Absences Date January 1, 2000 October 3, 2000 1 S` half by November 30, 2000 2°d half by February 28, 2001 1 s` half - December 1, 2000 2°a half - March 1, 2001 Accumulated unpaid vacation, sick pay, and other employee benefit amounts are accounted for in accordance with the provisions of GASB Statement No. 16, Accounting for Compensated Absences. Governmental funds report the estimated current portion of accrued compensated absences on their balance sheets, with the long-term portion of the liability reported in the General Long -Term Debt Account Group. Proprietary fund types report both the current and long-term portions on their balance sheets. (Continued) -45- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 1- Summary of Significant Accounting Policies: Compensated Absences 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. Fund Equity Contributed capital is recorded in proprietary funds that have received capital grants, contributions from developers or customers, and permanent transfers of equity from other funds or account groups. Investments in general fixed assets represent cumulative amounts expended by governmental funds for general fixed assets. Retained earnings (deficits) reflect cumulative profits and losses of proprietary funds. Fund balances - reserved represents those portions of fund equity legally segregated for a specific future use or those not appropriable for expenditure. Fund balance - unreserved represents those portions of fund equity tentatively planned for a future use or totally undesignated. Interfund Transactions Quasi -external transactions 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, except quasi -external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. Statement of Cash Flows In September, 1989, the Governmental Accounting Standards Board issued Statement No. 9, Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmental Entities That Use Proprietary Fund Accounting. The City adopted the provisions of the Statement in its 1991 financial statements. For purposes of the statement of cash flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Policy Regarding Use of FASB Pronouncements for Propriety Activities The City's proprietary activities follow all FASB Statements and Interpretations issued on or before November 30, 1989, except those that conflict with GASB pronouncements. FASB pronouncements issued after November 30, 1989, do not apply to proprietary activities unless specifically adopted in a GASB pronouncement. Memorandum Only - Total Columns Total columns on the general purpose financial statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in the columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. (Continued) -46- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 1- Summary of Significant Accounting Policies: Deposits - Primary Government At year end, the carrying amount of the City's demand deposits was $6,668,700 and the bank balance was $7,043,973. The bank balance of bank certificates of deposit and repurchase agreements (classified as investments on the balance sheets), was $14,282,596. The bank balance is categorized as follows: Amount secured by the FDIC, or collateralized with securities held by the City in its name $ 500,000 Amount collateralized with securities held by the pledging institution's agent in the City's name 13,266,569 Amount secured by Federal Home Loan Bank letters of credit 7,560,000 TOTAL BANK BALANCE 21.326.569 Note 2 - Deposits and Investments: Investments Kentucky Revised Statutes (KRS 66.480) authorize the City to invest in: 1. Obligations of the U.S. Treasury, agencies, and instrumentalities. Such investments may be accomplished through repurchase agreements reached with national or state banks chartered in Kentucky; 2. Bonds or certificates of indebtedness of the state of Kentucky and of its agencies and instrumentalities; 3. Savings and loan associations insured by the U.S. government; 4. Interest-bearing deposits in national or state banks chartered in Kentucky and insured by an agency of the U.S. government; 5. Deposit accounts with banking institutions; 6. State treasurer investment pool. The Police and Firemen's Retirement Fund is also authorized to invest in real estate mortgage notes, bonds and other interest bearing or dividend paying securities. Investments made by the City, including repurchase agreements, are summarized below. The investments that are represented by specific identifiable investment securities are classified as to credit risk by the three categories described below: Category 1 - Insured or registered, with securities held by the City or its agent in the City's name. Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name. Category 3 - Uninsured and unregistered, with securities held by the counterpart, or by its trust department or agent, but not in the City's name. (Continued) -47- r r CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 2 - Deposits and Investments: Investments Investments of the primary government are classified as follows: - Category Fair 1 2 3 Value ' ! U.S. government securities $4,104,136 $- T- $4,104,136 Mortgage backed securities 130,787 - - 130,787 Corporate bonds and notes 1,047,973 - - 1,047,973 $5,282,896 5,282,896 Investment in mutual funds 4,610,120 Total investments (excluding $14,282,593 of bank CD's) V 893 016 Investments of the discretely presented component units are classified as follows: Category Fair 1 2 3 Value U.S. government securities $2,074,338 $- $- $2,074,338 Corporate bonds and notes 152,252 - - 152,252 Corporate equity stocks 487,587 - - 487,587 2 714 177 2,714,177 Investment in mutual funds and money markets 6,229,411 Total investments (excluding $3,157,653 _ of bank CD's), including $8,548,401 classified as restricted on combined balance sheet 8 43 588 The following methods and assumptions were used by the entities in estimating fair values for financial instruments: Certificates of Deposit - The carrying amounts reported for certificates of deposit approximate their fair value. Investment Securities (Including Mortgage -Backed Securities) - Fair values for investment securities are based on quoted market prices. (Continued) -48- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 3 - Individual Fund Interfund Receivable and Pavable Balances: A summary of interfund account balances is as follows: Interfund Interfund Receivable Payable General Fund $346,734 $ 13,009 Special Revenue Funds: Small Grants Fund - 15,402 CDBG Grant Fund - 100,000 PHA Police Grant Fund - 14,633 Section 8 Housing Fund - 41,785 Home Grant Fund - 37,832 Enterprise Funds: TISA 13,009 24,685 i Internal Service Funds: Health Insurance Fund - 10,406 Fiduciary Funds: Property taxes - 101,991 TOTALS 359 743 359 743 Note 4 - Chan2es in General Fixed Assets: A summary of changes in General Fixed Assets follows: Additions Retirements Balance and and Balance July 1, 2000 Transfers In Transfers Out June 30, 2001 Primary government: Land $ 5,054,656 $ - $ - $ 5,054,656 Buildings and improvements 13,026,970 115,736 115,736 13,026,970 Equipment 5,207,569 325,655 253,823 5,279,401 Furnishings and fixtures 250,828 3,000 3,000 250,828 Vehicles 4,463,888 128,197 209,688 4,382,397 TOTALS $27,994,252 A summary of property, plant, and equipment of proprietary funds is presented below. Enterprise Funds Internal Service Fund Solid Civic Fleet Fleet Total Total Waste TISA Center Maintenance Lease Primary Component Reporting Fund Fund Fund Fund Trust Govt. Units Entity Land $ 65,908 $ - $ - $ - $ $ 65,908 $ 166,542 $ 232,450 Buildings 40,658 - 284,224 20,000 344,882 15,837,835 16,182,717 Machinery and equipment 3,273,513 328,929 17,491 208,980 1,643,414 5,472,327 2,009,226 7,481,553 Utility plant - - - - 104,569.742 104,569,742 3,380,079 328,929 301,715 228,980 1,643,414 5,883,117 122,583,345 128,466,462 Less accumulated depreciation (2,303,474) (72,041) 12( 2.096) (163,732) (451.628) 3 112 971) (41.616,728) (44.729.699) NET PROPERTY, - PLANT, AND EQUIPMENT $ 1 076 605 $ 256,888 $179,619 65.24 $1,191,78 SLU9-146 $ 80 966 617 $ 83 736,763 (Continued) -49- r� CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 5 — Lon2-Term Liabilities: -i The following is a summary of changes in Primary Government long-term debt for the year ended June 30, 2001: Beginning Ending Balance Additions Reductions Balance General Long -Term Debt: General obligation bonds: Convention and Arts Center — Series 2001, 3.50% - 5.00% $ - $9,290,000 $ - $ 9,290,000 Capital lease 521,966 - 140,636 381,330 General Fund accrued compensated absences 1,725,478 - 434,683 1,290,795 Enterprise Funds: Accrued compensated absences: Solid Waste Fund 47,266 - 35,868 11,398 Internal Service Funds: Accrued compensated absences: Fleet Maintenance Fund 31,016 1,514 - 32,530 TOTAL LONG-TERM DEBT 2 325 726 9 291 514 611 187 11.006.053 The long-term debt consists of the following: General Obligation Bonds The City of Paducah issued general obligation bonds in June, 2001, to finance construction of the new Four Rivers Center for the Performing Arts and the expansion of the Julian Carroll Convention Center. 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 is being 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. The annual debt service requirements to maturity, including principal and interest, for general long-term debt as of June 30, 2001, are as follows: General Obligation Year Ending Bonds June 30 Principal Interest 2002 $ 215,000 $ 427,550 2003 225,000 420,025 2004 230,000 412,150 2005 240,000 404,100 2006 250,000 394,500 Later years 8,130,000 4,747,357 ` TOTALS 9 2 0 000 6 805 682 (Continued) -50- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 5 — Long -Term Liabilities: Capital Lease On December 20, 1993, the City agreed to lease new fire equipment through the Kentucky Municipal Finance Corporation. All seven pieces of equipment were acquired prior to June 30, 1996. The total cost of the equipment was $1,674,251. The City paid $400,000 of the purchase price, with the remaining $1,274,251 financed with the lease. The lease is classified as a capital lease. The leased assets and related obligations are accounted for in the General Fixed Assets Account Group and the General Long -Term Account Group, respectively. Assets under capital leases totaled $1,274,251 at June 30, 2001. The following is a schedule of future minimum lease payments under this capital lease, together with the net present value of the minimum lease payments as of June 30, 2001: PRESENT VALUE OF MINIMUM LEASE PAYMENTS 381 330 Accrued Compensated Absences 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. Amounts accrued at June 30, 2001, are as follows: General Year Ending Long -Term Debt June 30 Account Group 2002 $162,432 2003 162,432 2004 81,216 Minimum lease payments for $ 711,872 capital lease 406,080 Less: amount representing interest 706,913 at the City's incremental borrowing 22,369 rate of interest 24,750 PRESENT VALUE OF MINIMUM LEASE PAYMENTS 381 330 Accrued Compensated Absences 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. Amounts accrued at June 30, 2001, are as follows: Less current portion 236,557 42,000 15,000 LONG-TERM PORTION $11,398 S322 530 (Continued) -51- General Proprietary Funds Long -Term Debt Solid Fleet Account Group Waste Maintenance Accrued sick leave $ 711,872 $12,648 $21,784 Accrued vacation leave 706,913 36,955 22,369 Applicable payroll taxes 108,567 3,795 3,377 Total 1,527,352 53,398 47,530 Less current portion 236,557 42,000 15,000 LONG-TERM PORTION $11,398 S322 530 (Continued) -51- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 6 - Pension Plans - City of Paducah: 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 Firefighter's 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 two deferred compensation plans. Information regarding these plans follows: Single Employer Defined Benefit Funds Accounting Policies 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. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Funding - The Appointive Employee's Pension Fund Board and the City of Paducah Policeman and Firefighter's Pension Fund Board are responsible for establishing or amending contribution rates and requirements for their respective plans. Valuation of Investments - Investments are reported at fair value. Investments are composed of securities valued at current market prices. Plan Descriptions and Contribution Information Membership of each plan consisted of the following at June 30, 2001, the date of the latest actuarial valuation: PFPF AEPF Plan membership: Active participants 8 - Beneficiaries 40 11 Retired participants 69 6 Total participants 117 17 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. 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. (Continued) -52- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 6 — Pension Plans - City of Paducah: Single Employer Defined Benefit Funds 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, 2001. 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. 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. 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. 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, 2001, 2000 and 1999, the City contributed 7.17%, 7.28%, and 8.22%, respectively, of each nonhazardous employee's creditable compensation and 16.78%, 17.55%, and 18.85%, respectively, of each hazardous 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, 2001, 2000 - and 1999 were $2,101,513, $2,164,676, and $2,292,524, respectively, equal to the required contributions for each year. Note 7 — Fund Equity and Budget Deficits: The following fund had a deficit in retained earnings at June 30, 2001: Health Insurance Fund Deficit Amount $119,764 No departments which adopted budgets annually had excess expenditures over appropriations for the fiscal year ended June 30, 2001. (Continued) -53- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 8 - Segment Information - Enterprise Fund: The government maintains four enterprise funds which are intended to be self-supporting through user fees charged for services to the public. Financial segment information as of and for the year ended June 30, 2001, is presented as follows: Deduct: Depreciation allocable to contributed capital CONTRIBUTED CAPITAL, JUNE 30, 2001 -54- (5 ,400) (48,027) - 167 400 256 888 381 523 (Continued) Solid Wastewater/ Civic Waste Stormwater Center Fund Fund Fund TISA Total Operating revenues $3,190,557 $ - $ 22,296 $ 73,400 $3,286,253 Depreciation and amortization expense 328,963 - 14,287 48,027 391,277 Operating income (loss) 52,961 - (17,656) (38,509) (3,204) Operating transfers (520) - 10,000 12,541 22,021 Net income (loss) 127,267 - ( 6,508) (25,968) 94,791 Depreciation funded by contributed capital - - 5,400 48,027 53,427 Property, plant and equipment additions 142,921 - 3,546 - 146,467 Net working capital 1,430,449 - 24,047 22,059 1,476,555 Total assets 2,707,564 184,588 207,491 304,125 3,403,768 Total equity 2,495,656 - 203,666 278,947 2,978,269 Note 9 — Changes in Contributed Capital: During the year, contributed capital changed by the following amounts: Civic Center Fleet Lease Fund TISA Trust Contributed capital, July 1, 2000 $172,800 $304,915 $381,523 Deduct: Depreciation allocable to contributed capital CONTRIBUTED CAPITAL, JUNE 30, 2001 -54- (5 ,400) (48,027) - 167 400 256 888 381 523 (Continued) CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 10 - Individual Fund Operating Transfers: Individual fund operating transfers were as follows for the year ended June 30, 2001: TOTALS Note 11— Component Unit Long -Term Debt: R 966 524 R-9-66524 Long-term debt of the discretely presented component units consists of the following at June 30, 2001: Refunding Revenue Bonds of 1991 - Paducah Water Works The City of Paducah, Kentucky Refunding Bonds, Series of 1991, in the amount of $10,775,000 were issued for the purpose of defeasing certain bonds of the Revenue Refunding Bonds, Series of 1985. During the year ended June 30, 1998, Paducah Water Works refunded a portion ($6,075,000) of the 1991 bond issue by issuing $6,780,000 of 1997 revenue refunding bonds, Series 1997. At June 30, 2001, the total bonds that are considered extinguished under an in -substance defeasance (refund) is $14,300,000. The bonds are secured by a first pledge of the revenues of Paducah Water Works. City bond ordinances require that net revenues, as defined in the ordinances, equal or exceed 130% of the maximum annual debt service. Payment of bonds and related interest is fully guaranteed by the Municipal Investors Assurance Corporation. (Continued) -55- Operating Operating Fund Transfers In Transfers Out General Fund $ 591,720 4,276,337 Special Revenue Funds: CDBG Fund 787,475 50,910 Municipal Aid Fund 327,230 - Emergency Communication Service Fund 77,418 - Small Grant Fund 10,000 - Court Awards Fund - 165 Home Grant Fund 25,862 41,550 HLTD Revolving Fund 92,461 5,322 Debt Service Fund - 591,720 Capital Projects Funds: CIP Fund 1,720,701 - Enterprise Funds: Solid Waste Fund - 520 Civic Center Fund 10,000 - TISA Fund 12,541 - Internal Service Funds: Fleet Maintenance 166,000 - Fleet Lease Trust 409,129 - Fiduciary Funds: Appointive Employee Pension Fund 75,000 - Police and Firemen's Pension Fund 660,987 - TOTALS Note 11— Component Unit Long -Term Debt: R 966 524 R-9-66524 Long-term debt of the discretely presented component units consists of the following at June 30, 2001: Refunding Revenue Bonds of 1991 - Paducah Water Works The City of Paducah, Kentucky Refunding Bonds, Series of 1991, in the amount of $10,775,000 were issued for the purpose of defeasing certain bonds of the Revenue Refunding Bonds, Series of 1985. During the year ended June 30, 1998, Paducah Water Works refunded a portion ($6,075,000) of the 1991 bond issue by issuing $6,780,000 of 1997 revenue refunding bonds, Series 1997. At June 30, 2001, the total bonds that are considered extinguished under an in -substance defeasance (refund) is $14,300,000. The bonds are secured by a first pledge of the revenues of Paducah Water Works. City bond ordinances require that net revenues, as defined in the ordinances, equal or exceed 130% of the maximum annual debt service. Payment of bonds and related interest is fully guaranteed by the Municipal Investors Assurance Corporation. (Continued) -55- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note I1— Component Unit Long -Term Debt: Refunding Revenue Bonds of 1991— Paducah Water Works The following schedule summarizes the debt service requirements for the Refunding Revenue Bonds, Series of 1991: Fiscal Year 2002 2003 2004 2005 2006 Later years Less deferred debit arising from advanced refunding TOTALS Principal $ 775,000 815,000 855,000 890,000 925,000 3,035,000 Interest $ 337,689 290,596 254,636 216,805 177,205 276,460 Total Debt Service $1,112,689 1,105,596 1,109,636 1,106,805 1,102,205 3,311,460 (473,685) - (473,685) 6 821 315 1 553 391 8 74 06 Note Payable, Kentucky Infrastructure Authority (KIA) — Paducah Water Works In connection with a merger with Reid.land Water District, Paducah Water Works assumed a loan from the KIA. Interest rates range from 2.5% to 5.75%, with a.2% annual service fee. The annual requirements to amortize the outstanding debt as of June 30, 2001, are as follows: Year Ending June 30 Principal Interest Fee (0.2%) Total 2002 $ 21,781 $ 19,920 $ 717 $ 42,418 2003 22,653 18,809 673 42,135 - 2004 24,321 17,631 628 42,580 2005 25,648 16,354 579 42,581 2006 26,974 14,976 528 42,478 Later years 237,020 57,343 2,000 296,363 TOTALS 145 033 5 125 508 555 Paducah Electric Plant Board 1991 Bond Issue In 1991, bonds amounting to $4,725,000 were issued to make improvements to the Paducah Power sub -station and renovation of the building that houses the System's offices, warehouse and storage. All assets of the System are pledged as collateral to the bond issue. Interest rates range from 6.25% to 6.30%. On November 1, 1998, the Utility issued $3.35 million in special revenue refunding bonds with interest rates between 3.60% and 4.20%. The Utility issued the bonds to advance refund $3.06 million of the outstanding Series 1991 general obligation bonds with a 6.30% interest rate and were secured by all assets of the Utility. The Utility used the net proceeds along with other resources to purchase the U. S. Government Securities. These securities were deposited in an irrevocable trust to provide for all future debt service on the refunded portion of the 1991 Series bonds maturing on or after January 1, 2002. As a result, that portion of the 1991 Series bonds is considered defeased and the Utility has removed the liability from its books. (Continued) -56- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 11— Component Unit Long -Term Debt: The following schedule summarizes the remaining debt service requirements: Bonds payable totaling $3,016,159 are recorded net of $268,841 unamortized bond discount and advance refunding deferred charges. Note 12 - Commitments and 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. Note 13 - Risk Management and Litigation: The City is exposed to various risks of losses 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: Current Year Total Beginning of Debt Fiscal Year Principal Interest Service 2002 $ 275,000 $132,948 $ 407,948 2003 285,000 122,635 407,635 2004 295,000 111,235 406,235 2005 310,000 99,435 409,435 2006 320,000 87,035 407,035 Later years 1,800,000 230,670 2,030,670 TOTALS 3 285 000 783 958 4 068 958 Bonds payable totaling $3,016,159 are recorded net of $268,841 unamortized bond discount and advance refunding deferred charges. Note 12 - Commitments and 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. Note 13 - Risk Management and Litigation: The City is exposed to various risks of losses 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: (Continued) -57- Current Year Beginning of Claims and Actual Balance at Fiscal Year Changes in Claim Fiscal Liability Estimates Payments Year End 1995-1996 $ - $ 67,615 $ 67,615 $ - 1996-1997 - 85,326 85,326 - 1997 - 1998 - 96,101 96,101 - 1998- 1999 - 26,457 26,457 - 1999-2000 - 26,455 26,455 - 2000-2001 - 102,380 102,380 - (Continued) -57- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 13 - Risk Management and Litigation: 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 i $80,000 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 of $2,000,000. 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 $285,000 at June 30, 2001. The analysis of claims activity is presented below: 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, have determined to be immaterial to the City's financial position. Note 14 - Lease Agreements: The City leases certain property to various lessees under agreements which have various expiration dates through June 30, 2079. Rental revenue received from leased property during 2001, totaled $210,000. The following is a schedule of future minimum rental income from operating leases at June 30, 2001: Current Year Income Beginning of Claims and Actual Balance at Fiscal Year Changes in Claim Fiscal Liability Estimates Payments Year End 1999-2000 $ - $1,874,033 $1,874,033 $ - 2000 —2001 - 2,636,969 2,351,969 285,000 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, have determined to be immaterial to the City's financial position. Note 14 - Lease Agreements: The City leases certain property to various lessees under agreements which have various expiration dates through June 30, 2079. Rental revenue received from leased property during 2001, totaled $210,000. The following is a schedule of future minimum rental income from operating leases at June 30, 2001: TOTAL MINIMUM LEASE RECEIPTS ILJ69 000 Note 15 - Reclassification of Beginning Fund Balance: A reclassification was made to the following beginning fund balance as follows: Lease Income 2002 $ 230,500 2003 248,000 2004 258,000 2005 268,000 2006 198,000 Future years 666,500 TOTAL MINIMUM LEASE RECEIPTS ILJ69 000 Note 15 - Reclassification of Beginning Fund Balance: A reclassification was made to the following beginning fund balance as follows: (Continued) -58- Special Revenue Fund June 30, 2000, balance as previously reported $ 204,332 Section 8 Housing adjustment to beginning balance 31,661 JULY 1, 2000, BALANCE AS RESTATED 235 993 (Continued) -58- CITY OF PADUCAH, KENTUCKY NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2001 Note 16 — New ReuortinLy Standard: In June, 1999, the Governmental Accounting Standards Board (GASB) issued Statement 34 Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments. This Statement establishes new financial reporting requirements for state and local governments throughout the United States. When implemented, it will require new information and restructure much of the information that governments have presented in the past. Comparability with reports issued in all prior years will be affected. The City is required to implement this standard for the fiscal year ending June 30, 2003. The effect this standard has on the City has not been fully determined. -59- r I �1 CITY OF PADUCAH, KENTUCKY ' REQUIRED SUPPLEMENTARY INFORMATION PENSION TRUST FUNDS SCHEDULES Schedules of Funding Progress Appointive Employees' Pension Fund (AEPF) (Using Aggregate Actuarial Method) The Aggregate Cost Method is used for the AEPF; therefore, a schedule of funding progress is not required. Schedules of Employer Contributions PFPF 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) 121 7/1/1999 $11,949,160 $16,011,730 $4,062,570 74.6% $332,825 1220.63% 7/1/2000 11,914,754 15,923,034 4,008,280 74.8 345,500 1160.14 7/1/2001 11,346,128 15,724,236 4,378,108 72.2 356,406 1228.40 Appointive Employees' Pension Fund (AEPF) (Using Aggregate Actuarial Method) The Aggregate Cost Method is used for the AEPF; therefore, a schedule of funding progress is not required. Schedules of Employer Contributions PFPF AEPF Year Annual Required Percent Annual Required Percent Ending Ended Contribution ARC Contribution ARC Net Pension June 30 (ARC) Contributed (ARC) Contributed Obligation (NPO) " 1999 $593,776 100% $72,984 103% $(186,860) 2000 649,274 100 66,716 112 (182,405) 2001 865,026 100 62,029 121 (182,940) Components of Annual Pension Cost (AEPF) Year Ended Year Ended Year Ended Component June 30, 2001 June 30, 2000 June 30, 1999 Beginning NPO balance $082,405) $(186,860) 198 368) ARC 62,029 66,716 72,984 Interest on NPO ( 10,944) ( 11,212) ( 11,902) Unfunded ARC adjustment 23,380 23,951 25,426 Pension cost 74,465 79,455 86,508 Less actual contribution 75,000 75,000 75,000 Net change in NPO ( 535) 4,455 11,508 ENDING NPO BALANCE 182 940) 182 405) 186 860) (Continued) -60- CITY OF PADUCAH, KENTUCKY REQUIRED SUPPLEMENTARY INFORMATION PENSION TRUST FUNDS SCHEDULES Notes to Supplementary Schedules: -61- PFPF AEPF Valuation date 7/1/01 7/1/01 Actuarial cost method Entry age normal Aggregate (1) Amortization method Level dollar closed Level dollar closed Remaining amortization period 31 Years 10 Years Asset valuation method Market value Market value Actuarial assumptions: Investment rate of return 8.0% 6.0% Projected salary increases 4.0% (2) Inflation rates adjustments 2.0% (2) (1) The Aggregate Method does not identify or separately amortize the unfunded actuarial liabilities. (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. -61- COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 309 2001 GENERAL FUND To account for resources traditionally associated with governments which are not required to be accounted for in another fund. Cash Investments Receivables: Accounts Grants Interest Due from other funds TOTAL ASSETS CITY OF PADUCAH, KENTUCKY GENERAL FUND BALANCE SHEET JUNE 30, 2001 ASSETS LIABILITIES AND FUND BALANCE Liabilities: Voucher and accounts payable Accrued payroll Deferred revenues Accrued compensated absences Due to other funds Total liabilities Fund Balance: Fund balance: Unreserved: Undesignated TOTAL LIABILITIES AND FUND BALANCE See auditor's report on page 13. -62- Exhibit A-1 $2,233,626 2,568,830 84,510 76,319 52,550 346,734 $5,362,569 $ 377,868 502,596 3,162 236,557 13,009 1,133,192 4,229,377 $5,362,569 Exhibit A-2 CITY OF PADUCAH, KENTUCKY GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2001 Revenues: Taxes $ 4,736,568 Licenses and permits 16,705,030 Charges for services 578,482 Grants 723,626 Interest 358,987 Other 507,481 Total revenues 23,610,174 Expenditures: General government 3,386,330 Public safety 10,530,012 Public service 4,872,587 Recreation 738,401 Other 99,657 Total expenditures 19,626,987 Excess of revenues over expenditures 3,983,187 Other Financing Sources (Uses): Operating transfers in 591,720 Operating transfers out (4,276,337) Total other financing sources (uses) (3,684,617) Excess of revenues and other financing sources over (under) expenditures and other uses 298,570 Fund balance, July 1, 2000 3,930,807 FUND BALANCE, JUNE 30, 2001 $ 4,229,377 See auditor's report on page 13. -63- Exhibit A-3 CITY OF PADUCAH, KENTUCKY GENERAL FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR YEAR ENDED JUNE 30, 2000 See auditor's report on page 13. -64- Variance - 2001 2001 Favorable 2000 Revenues: Budget Actual (Unfavorable) Actual Taxes: Real and personal, current year $ 3,887,010 $ 3,973,898 $ 86,888 $ 3,982,872 Real and personal, prior year 105,800 157,508 51,708 135,215 Franchise 250,785 257,095 6,310 211,860 Bank taxes 175,605 175,607 2 189,949 In lieu of tax payment 136,860 136,864 4 119,938 Penalty, interest and advertising 35,595 35,596 1 19,368 Total taxes 4,591,655 4,736,568 144,913 4,659,202 Licenses: Business licenses 3,123,755 3,201,444 77,689 3,003,546 Employee earnings 9,521,140 9,603,106 81,966 9,451,473 Comcast fees 258,955 258,957 2 239,615 Penalties 84,690 84,692 2 70,636 Alcoholic beverages 25,715 28,178 2,463 84,085 Insurance premium tax 3,416,875 3,416,875 - 2,968,927 Building permits 81,520 81,522 2 111,370 Electrical permits 19,825 19,827 2 31,879 Zoning change fees 5,265 5,267 2 6,637 Miscellaneous building and electrical fees 5,160 5,162 2 2,828 Total licenses 16,542,900 16,705,030 162,130 15,970,996 Charges for Services: Tax collection fee 111,495 113,759 2,264 111,302 Administrative charge 160,080 160,084 4 160,083 Base court revenue 168,750 168,752 2 168,752 Recreation fees 135,885 135,887 2 126,008 Total charges for services 576,210 578,482 2,272 566,145 See auditor's report on page 13. -64- CITY OF PADUCAH, KENTUCKY GENERAL FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR YEAR ENDED JUNE 30, 2000 Grants: Police State Incentive Fire State Incentive Paducah Housing Authority after school program Police supplemental grants FEMA funding NFL youth football Total grants Interest Other: Property rent and sales Property upkeep and maintenance Miscellaneous Total other Total revenues See auditor's report on page 13. 2001 2001 Budget Actual $ 225,595 $ 245,509 268,620 268,622 14,260 25,585 174,775 174,778 8,130 8,132 1,000 1,000 692,380 723,626 358,985 358,987 335,180 335,180 123,685 123,695 507,465 507,481 23,269,595 23,610,174 -65- Exhibit A-3 Variance - Favorable 2000 (Unfavorable) Actual $ 19,914 $ 243,402 2 290,253 11,325 57,776 3 304,878 2 70,406 31,246 966,715 2 386,764 - 449,364 10 111,570 6 42,677 16 603,611 340,579 23,153,433 (Continued) CITY OF PADUCAH, KENTUCKY GENERAL FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR YEAR ENDED JUNE 30, 2000 Expenditures: General Government: General Administration: Mayor and commissioners City Manager City clerk Corporate counsel Non -departmental Memberships and contingency Alcoholic beverage control Civic beautification Total general administration Finance: Finance administration Accounting and payroll Revenue collection Total finance Planning: Administration Planning Grants Economic development Information systems Total planning Human rights Personnel Inspection: Inspection administration Construction Code enforcement Total inspection Information systems See auditor's report on page 13. Exhibit A-3 (Continued) 180,372 140,852 95,796 108,115 179,727 140,736 95,690 108,112 525,135 524,265 88,745 88,343 208,350 207,988 206,630 206,328 Variance - 215,902 2001 2001 Favorable 2000 Budget Actual (Unfavorable) Actual $ 185,400 $ 185,127 $ 273 $ 162,757 261,600 261,259 341 228,054 136,145 136,081 64 118,405 227,770 227,593 177 256,689 248,000 247,998 2 224,000 403,650 25,285 378,365 42,748 3,635 3,631 4 6,228 28,105 28,061 44 19,020 1,494,305 1,115,035 379,270 1,057,901 133,840 133,757 83 125,176 272,525 272,364 161 261,556 259,255 259,238 17 242,822 665,620 665,359 261 629,554 180,372 140,852 95,796 108,115 179,727 140,736 95,690 108,112 525,135 524,265 88,745 88,343 208,350 207,988 206,630 206,328 216,035 215,902 229,270 229,124 651,935 651,354 133,990 133,986 -66- 645 116 106 3 870 402 362 302 133 146 581 4 186,310 81,340 135,442 105,070 119,591 627,753 226,717 268,049 149,457 386,896 804,402 Exhibit A-3 CITY OF PADUCAH, KENTUCKY GENERAL FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR YEAR ENDED JUNE 30, 2000 Variance - 2001 2001 Favorable 2000 Budget Actual (Unfavorable) Actual - Public Safety: Police: ` Police administration $ 805,460 $ 805,233 $ 227 $ 752,724 Patrol 3,649,940 3,649,664 276 3,560,176 Investigations 985,920 974,708 11,212 863,946 Crime prevention/media relations 283,250 282,961 289 300,219 Total police 5,724,570 5,712,566 12,004 5,477,065 Fire: Fire administration 194,120 194,119 1 192,260 Suppression 4,355,275 4,355,093 182 4,371,890 Prevention 155,470 155,298 172 150,446 Training 112,985 112,936 49 172,195 r Total fire 4,817,850 4,817,446 404 4,886,791 Public Service: Public works: Public Works Administration 54,005 53,991 14 - Street maintenance 1,874,545 1,874,491 54 1,705,035 Street lighting 398,635 398,631 4 390,021 Facility maintenance 490,230 490,046 184 491,003 Custodial service 191,925 191,916 9 173,103 Landscape maintenance 1,041,710 1,041,707 3 86,462 - - Summer youth program 90,050 90,035 15 100,960 Total public works 4,141,100 4,140,817 283 2,946,584 Engineering services: Engineering services 391,065 390,891 174 347,733 Flood control 340,880 340,879 1 309,534 Total engineering services 731,945 731,770 175 657,267 See auditor's report on page 13. (Continued) -67- Exhibit A-3 (Continued) CITY OF PADUCAH, KENTUCKY GENERAL FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR YEAR ENDED JUNE 30, 2000 See auditor's report on page 13. -68- Variance - 2001 2001 Favorable 2000 Budget Actual (Unfavorable) Actual Recreation: Recreation administration $ 362,425 $ 362,239 $ 186 $ 350,733 Grounds and cemetery maintenance - - - 976,395 Pools and recreation 376,165 376,162 3 334,434 Total parks 738,590 738,401 189 1,661,562 Other: Cable authority 99,750 99,657 93 95,082 Total expenditures 20,021,885 19,626,987 394,898 19,161,052 Excess of revenues over expenditures 3,247,710 3,983,187 735,477 3,992,381 Other Financing Sources (Uses): Operating transfers in 591,720 591,720 - 38,613 Operating transfers out (4,276,340) (4,276,337) 3 (4,017,544) Total other financing sources (uses) (3,684,620) (3,684,617) 3 (3,978,931) Excess of revenues and other financing sources over (under) expenditures and other uses $ (436,910) 298,570 $735,480 13,450 Fund balance, beginning of year, as previously reported 3,930,807 4,498,239 Residual equity transfers from (to) other funds - (580,882) FUND BALANCE, END OF YEAR $ 4,229,377 $ 3,930,807 See auditor's report on page 13. -68- r� _r J I S S rT 7 CITY OF PADUCAH, KENTUCKY r f J FINANCIAL STATEMENTS SPECIAL REVENUE FUNDS f COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 309 2001 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. Exhibit B-1 CITY OF PADUCAH, KENTUCKY SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2001 - LIABILITIES AND FUND EOUITY Liabilities: Voucher and accounts payable Accrued payroll and payroll taxes Due to other funds Deferred revenues Total liabilities Fund Equity: Fund balance: Reserved for program purposes Unreserved: Designated for street $ 98,731 $ 25,620 $ 49,263 $ 174,742 - 19,709 - 10,940 - - 209,652 - (165) - 125,011 98,731 45,164 49,263 520,345 improvement 1,080,254 - - Undesignated - 103,400 63,965 Total fund equity 1,080,254 103,400 63,965 604,021 $ 348,356 30,649 209,652 124,846 713,503 604,021 1,080,254 - 167,365 604,021 1,851,640 TOTAL LIABILITIES AND FUND BALANCES $1,178,985 $148,564 $113,228 $1,124,366 $2,565,143 See auditor's report on page 13. -69- Emergency Court Federal, ASSETS Municipal Communication Awards State, and Combined Aid Program Service Fund Fund Local Grants Total Cash $ 506,370 $ 95,343 $113,228 $ 935,264 $1,650,205 i Investments 650,000 - - - 650,000 Receivables: Accounts - 53,221 - 24,704 77,925 Grants - - - 164,398 164,398 Interest 22,615 - - - 22,615 TOTAL ASSETS $1,178,985 $148,564 $113,228 $1,124,366 $2,565,143 LIABILITIES AND FUND EOUITY Liabilities: Voucher and accounts payable Accrued payroll and payroll taxes Due to other funds Deferred revenues Total liabilities Fund Equity: Fund balance: Reserved for program purposes Unreserved: Designated for street $ 98,731 $ 25,620 $ 49,263 $ 174,742 - 19,709 - 10,940 - - 209,652 - (165) - 125,011 98,731 45,164 49,263 520,345 improvement 1,080,254 - - Undesignated - 103,400 63,965 Total fund equity 1,080,254 103,400 63,965 604,021 $ 348,356 30,649 209,652 124,846 713,503 604,021 1,080,254 - 167,365 604,021 1,851,640 TOTAL LIABILITIES AND FUND BALANCES $1,178,985 $148,564 $113,228 $1,124,366 $2,565,143 See auditor's report on page 13. -69- CITY OF PADUCAH, KENTUCKY SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2001 Revenues: Charges for services Intergovernmental Grants Interest Other Total revenues Expenditures: Current: Public safety Public services Planning and development Total expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other uses Fund balances, July 1, 2000 as previously reported Adjustment to beginning fund balance FUND BALANCES, JUNE 30, 2001 See auditor's report on page 13. Exhibit B-2 (208,263) 50,165 3,163 244,435 89,500 1,288,517 53,235 60,802 327,925 1,730,479 - - 31,661 31,661 $1,080,254 $ 103,400 $63,965 $ 604,021 $1,851,640 -70- Emergency Court Federal, Municipal Communication Awards State, and Combined Aid Program Service Fund Fund Local Grants Total $ - $ 753,798 $ - $ - $ 753,798 437,439 - 12,973 - 450,412 - - - 2,201,418 2,201,418 77,611 - 6,335 13,597 97,543 - 67,925 24,795 156,020 248,740 515,050 821,723 44,103 2,371,035 3,751,911 - 848,976 40,775 159,891 1,049,642 1,050,543 - - - 1,050,543 - - - 2,784,725 2,784,725 1,050,543 848,976 40,775 2,944,616 4,884,910 (535,493) (27,253) 3,328 (573,581) (1,132,999) 327,230 77,418 - 915,798 1,320,446 - - (165) (97,782) (97,947) 327,230 77,418 (165) 818,016 1,222,499 (208,263) 50,165 3,163 244,435 89,500 1,288,517 53,235 60,802 327,925 1,730,479 - - 31,661 31,661 $1,080,254 $ 103,400 $63,965 $ 604,021 $1,851,640 -70- CITY OF PADUCAH, KENTUCKY FEDERAL, STATE, AND LOCAL GRANTS COMBINING BALANCE SHEET JUNE 30, 2001 ASSETS Cash Receivables: Accounts Grants TOTAL ASSETS LIABILITIES AND FUND EQUITY Voucher and accounts payable Accrued payroll and payroll taxes Due to other funds Deferred revenues Total liabilities Fund balance reserved for program purposes TOTAL LIABILITIES AND FUND BALANCES See auditor's report on page 13. Exhibit B-3 Small HOPE 3 Home HUD Grant CDBG Grant Grant Revolving Fund Fund Fund Fund Grant Fund $15,389 $137,276 $176,345 $ - $171,931 13 75,660 - 37,832 - $15,402 $212,936 $176,345 $37,832 $171,931 $ - $112,936 $ - $ - $ 16,093 15,402 100,000 - 37,832 - 15,402 212,936 - 37,832 16,093 - - 176,345 - 155,838 $15,402 $212,936 $176,345 $37,832 $171,931 -71- PHA Section Police Eight Combined Grant Fund Housing Total $ - $434,323 $ 935,264 - 24,704 24,704 14,633 36,260 164,398 $14,633 $495,287 $1,124,366 $ - $ 45,713 $ 174,742 - 10,940 10,940 14,633 41,785 209,652 - 125,011 125,011 14,633 223,449 520,345 - 271,838 604,021 $14,633 $495,287 $1,124,366 -72- CITY OF PADUCAH, KENTUCKY FEDERAL, STATE, AND LOCAL GRANTS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2001 Revenues: Grants Interest Other Total revenues Expenditures: Public safety Planning and development Total expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other uses Fund balances, July 1, 2000, as previously reported Adjustment to beginning fund balance FUND BALANCES, JUNE 30, 2001 See auditor's report on page 13. Exhibit B-4 Small HOPE 3 Home HUD Grant CDBG Grant Grant Revolving Fund Grant Fund Fund Grant Fund $ 8,715 $163,985 $ - $ 432,695 $ - - - - - 5,885 - - 142,387 9,000 4,516 8,715 163,985 142,387 441,695 10,401 24,338 900,550 - 426,007 25,714 24,338 900,550 - 426,007 25,714 (15,623) (736,565) 142,387 15,688 (15,313) 10,000 787,475 - (50,910) 10,000 736,565 (5,623) - 5,623 - -73- 25,862 92,461 (41,550) (5,322) - (15,688) 87,139 142,387 - 71,826 33,958 - 84,012 $176,345 $ - $155,838 PHA Section Police Eight Combined Grant Fund Housing Total $159,891 $1,436,132 $2,201,418 - 7,712 13,597 - 117 156,020 159,891 1,443,961 2,371,035 159,891 - 159,891 - 1,408,116 2,784,725 159,891 1,408,116 2,944,616 35,845 (573,581) 915,798 (97,782) 818,016 35,845 244,435 204,332 327,925 31,661 31,661 $ - $ 271,838 $ 604,021 -74- CITY OF PADUCAH, KENTUCKY BUDGETED SPECIAL REVENUE FUNDS TOTALS DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Revenues: Charges for services Intergovernmental Grants Interest Other Total revenues Expenditures: Public safety Public services Planning and development Total expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other uses Fund balance, July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -75- Exhibit B-5 (1,239,029) (1,168,844) 70,185 1,267,740 1,320,446 Variance - (97,947) 1,169,789 Favorable Budget Actual (Unfavorable) $ 753,635 $ 753,798 $ 163 450,405 450,412 7 712,315 765,286 52,971 73,060 89,831 16,771 248,620 248,623 3 2,238,035 2,307,950 69,915 1,049,905 1,049,642 263 1,050,545 1,050,543 2 1,376,614 1,376,609 5 3,477,064 3,476,794 270 (1,239,029) (1,168,844) 70,185 1,267,740 1,320,446 (97,951) (97,947) 1,169,789 1,222,499 $ (69,240) 53,655 1,526,147 $1,579,802 52,706 4 52,710 $122,895 CITY OF PADUCAH, KENTUCKY MUNICIPAL AID PROGRAM FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Revenues: Intergovernmental Interest Total revenues Expenditures: Public services Excess of revenues over (under) expenditures Other Financing Sources (Uses): Operating transfers in Excess of revenues and other financing sources over (under) expenditures and other uses Fund balance July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -76- Exhibit B-6 $ (225,730) (208,263) $ 17,467 1,288,517 $1,080,254 Variance - Favorable Budget Actual (Unfavorable) $ 437,435 $ 437,439 $ 4 60,150 77,611 17,461 497,585 515,050 17,465 1,050,545 1,050,543 2 (552,960) (535,493) 17,467 327,230 327,230 - $ (225,730) (208,263) $ 17,467 1,288,517 $1,080,254 CITY OF PADUCAH, KENTUCKY EMERGENCY COMMUNICATION SERVICE FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Revenues: Local contributions Telephone surcharges Total revenues Expenditures: Public safety Excess of revenues over (under) expenditures Other Financing Sources (Uses): Operating transfers in Excess of revenues and other financing sources over (under) expenditures and other uses Fund balance, July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -77- Budget Actual $ 67,925 $ 67,925 753,635 753,798 821,560 821,723 849,120 848,976 (27,560) (27,253) Exhibit B-7 Variance - Favorable (Unfavorable) 163 163 144 307 77,420 77,418 (2) $ 49,860 50,165 $ 305 53,235 $103,400 CITY OF PADUCAH, KENTUCKY COURT AWARDS FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Revenues: Intergovernmental Court awarded forfeitures Interest Total revenues Expenditures: Public safety Excess of revenues over (under) expenditures Other Financing Sources (Uses): Operating transfers out Excess of revenues and other financing sources over (under) expenditures and other uses Fund balance, July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -78- Exhibit B-8 (165) (165) $ 3,080 3,163 60,802 $63,965 $ 83 Variance - Favorable Budget Actual (Unfavorable) $12,970 $12,973 $ 3 24,795 24,795 - 6,335 6,335 - 44,100 44,103 3 40,855 40,775 80 3,245 3,328 83 (165) (165) $ 3,080 3,163 60,802 $63,965 $ 83 CITY OF PADUCAH, KENTUCKY SMALL GRANT FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Revenues: Grants Expenditures: Planning and development Excess of revenues over (under) expenditures Other Financing Sources (Uses): Operating transfers in Excess of revenues and other financing sources over (under) expenditures and other uses Fund balance, July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -79- Exhibit B-9 Variance - Favorable Budget Actual (Unfavorable) $ 8,715 $ 8,715 $ - 24,340 24,338 (15,625) (15,623) 10,000 10,000 $ (5,625) (5,623) 5,623 2 7 $ 2 CITY OF PADUCAH, KENTUCKY CDBG FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Revenues: Grants Expenditures: Planning and development Excess of revenues over (under) expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other uses Fund balance, July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -80- Exhibit B-10 787,475 787,475 - (50,910) (50,910) - 736,565 736,565 - Variance - Favorable Budget Actual (Unfavorable) $ 163,985 $ 163,985 $ - 900,550 900,550 - (736,565) (736,565) - 787,475 787,475 - (50,910) (50,910) - 736,565 736,565 - CITY OF PADUCAH, KENTUCKY HOPE 3 IMPLEMENTATION GRANT FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Revenues: Budget Other $142,385 Expenditures: Planning and development - Excess of revenues over (under) expenditures $142,385 Fund balance, July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -81- Exhibit B-11 Variance - Favorable Actual (Unfavorable) $142,387 $ 2 142,387 33,958 $176,345 $2 CITY OF PADUCAH, KENTUCKY HOME GRANT FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Revenues: Grants Other Total revenues Expenditures: Planning and development Excess of revenues over (under) expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other uses Fund balance, July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -82- Exhibit B-12 16,565 (41,551) 25,862 (41,550) Variance - (15,688) Favorable Budget Actual (Unfavorable) $379,725 $432,695 $ 52,970 9,000 9,000 - 388,725 441,695 52,970 426,009 426,007 2 (37,284) 15,688 52,972 16,565 (41,551) 25,862 (41,550) (24,986) (15,688) $ (62,270) - 9,297 1 9,298 $ 62,270 CITY OF PADUCAH, KENTUCKY HUD REVOLVING GRANT FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Revenues: Interest Other Total revenues Expenditures: Planning and development Excess of revenues over (under) expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other uses Fund balance, July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -83- Budget Actual $ 6,575 $ 5,885 4,515 4,516 11,090 10,401 25,715 25,714 Exhibit B-13 Variance - Favorable (Unfavorable) $ (690) 1 (689) (14,625) (15,313) (688) 49,050 92,461 43,411 (5,325) (5,322) 3 43,725 87,139 43,414 $ 29,100 71,826 $42,726 84,012 $155,838 CITY OF PADUCAH, KENTUCKY PADUCAH HOUSING AUTHORITY POLICE GRANT FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Revenues: Grants Expenditures: Public safety Excess of revenues over (under) expenditures Fund balance, July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -84- Budget Actual $159,890 $159,891 159,930 159,891 $ (40) - Exhibit B-14 Variance - Favorable (Unfavorable) $1 39 $40 i rl, i CITY OF PADUCAH, KENTUCKY r . t FINANCIAL STATEMENTS -DEBT SERVICE FUND j i i COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 309 2001 DEBT SERVICE FUND To account for the payment of public project bond principal and interest, public improvement loan principal and interest, and capital lease payments. Cash Notes receivable TOTAL ASSETS Liabilities: Deferred revenues Matured interest coupons unpaid Total liabilities Fund Equity: Fund balance: Unreserved: Designated for debt service TOTAL LIABILITIES AND EQUITY See auditor's report on page 13. CITY OF PADUCAH, KENTUCKY DEBT SERVICE FUND BALANCESHEET JUNE 30, 2001 ASSETS LIABILITIES AND FUND EQUITY -85- Exhibit C-1 $ 1,434 232,833 $234,267 $ 1,283 344 1,627 232,640 $234,267 CITY OF PADUCAH, KENTUCKY DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2001 Revenues: Interest Other Total revenues Expenditures: Debt service: Principal requirement Interest and fiscal requirement Total expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses): Operating transfers out Excess of revenues and other financing sources over (under) expenditures and other uses Fund balance, July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -86- CITY OF PADUCAH, KENTUCKY DEBT SERVICE FUND DETAIL STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Revenues: Interest Other Total revenues Expenditures: Debt service: Principal requirement Interest and fiscal requirement Total expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses): Operating transfers out Excess of revenues and other financing sources over (under) expenditures and other uses Fund balance, July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -87- Exhibit C-3 140,640 140,636 Variance - 25,752 166,400 Favorable Budget Actual (Unfavorable) $ 30,885 $ 12,867 $ (18,018) 42,275 42,276 1 73,160 55,143 (18,017) 140,640 140,636 25,760 25,752 166,400 166,388 (93,240) (111,245) (609,740) (591,720) $(702,980) (702,965) 935,605 $ 232,640 4 8 12 (18,005) 18,020 $ 15 COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 309 2001 CAPITAL PROJECT FUNDS 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. Downtown Capital Improvements — to account for the acquisition or construction of major capital facilities related to the development of downtown Paducah. CITY OF PADUCAH, KENTUCKY CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET JUNE 30, 2001 ASSETS Cash Investments Accounts receivable Grant receivable Interest receivable TOTAL ASSETS LIABILITIES AND FUND EQUITY Liabilities: Voucher and accounts payable Deferred revenue Total liabilities Fund Equity: Fund balance: Reserved for future capital improvements TOTAL LIABILITIES AND FUND EQUITY See auditor's report on page 13. General Downtown Capital Capital Improvements Improvements $ 882,206 $ 24,450 600,000 9,000,000 - 144,840 126,930 - 5,388 3,893 $1,614,524 $9,173,183 -88- Exhibit D-1 Combined 9,600,000 144,840 126,930 $10,787,707 $ 356,312 421,064 $ 777,376 175,926 - 175,926 532,238 421,064 953,302 1,082,286 8,752,119 9,834,405 $1,614,524 $9,173,183 $10,787,707 CITY OF PADUCAH, KENTUCKY CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2001 Revenues: Taxes Grants Interest Other Total revenues Expenditures: Capital outlay Excess of revenues over (under) expenditures Other Financing Sources (Uses): Bond issue proceeds Operating transfers in Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other uses Fund balances, July 1, 2000 FUND BALANCES, JUNE 30, 2001 See auditor's report on page 13. -89- Exhibit D-2 General Downtown 9,104,211 Capital Capital Combined Improvements Improvements Total $ - $ 144,840 $ 144,840 836,856 - 836,856 42,009 3,893 45,902 309,650 2,300 311,950 1,188,515 151,033 1,339,548 3,347,440 503,125 3,850,565 (2,158,925) (352,092) (2,511,017) - 9,104,211 9,104,211 1,720,701 - 1,720,701 1,720,701 9,104,211 10,824,912 (438,224) 8,752,119 8,313,895 1,520,510 - 1,520,510 $1,082,286 $8,752,119 $9,834,405 CITY OF PADUCAH, KENTUCKY CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Revenues: Taxes Grants Interest Other Total revenues Expenditures: Capital outlay Excess of revenues over (under) expenditures Other Financing Sources (Uses): Bond issue proceeds Operating transfers in Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other uses Fund balances, July 1, 2000 FUND BALANCES, JUNE 30, 2001 See auditor's report on page 13. -90- Exhibit D-3 General Capital Improvements 3,347,445 3,347,440 5 (2,163,355) (2,158,925) 4,430 1,833,880 1,720,701 (113,179) 1,833,880 1,720,701 (113,179) $ (329,475) (438,224) $(108,749) 1,520,510 $1,082,286 Variance - Favorable Budget Actual (Unfavorable) 836,855 836,856 1 37,580 42,009 4,429 309,655 309,650 (5) 1,184,090 1,188,515 4,425 3,347,445 3,347,440 5 (2,163,355) (2,158,925) 4,430 1,833,880 1,720,701 (113,179) 1,833,880 1,720,701 (113,179) $ (329,475) (438,224) $(108,749) 1,520,510 $1,082,286 Downtown Capital Improvements Totals Variance- Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ - $ 144,840 $144,840 $ - $ 144,840 $144,840 - - - 836,855 836,856 1 3,895 3,893 (2) 41,475 45,902 4,427 2,300 2,300 - 311,955 311,950 (5) 6,195 151,033 144,838 1,190,285 1,339,548 149,263 503,125 503,125 - 3,850,570 3,850,565 5 (496,930) (352,092) 144,838 (2,660,285) (2,511,017) 149,268 9,023,015 9,104,211 81,196 9,023,015 9,104,211 81,196 - - - 1,833,880 1,720,701 (113,179) 9,023,015 9,104,211 81,196 10,856,895 10,824,912 (31,983) $8,526,085 8,752,119 $226,034 $8,196,610 8,313,895 $117,285 - 1,520,510 $8,752,119 $9,834,405 -91- ENTERPRISE FUNDS Solid Waste Fund — to account for the provision of refuse services to the residents of the City. Wastewater/Stormwater Fund — to account for the remaining assets and liabilities of wastewater/stormwater operations not yet transferred to the Joint Sewer Agency. 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. Exhibit E-1 CITY OF PADUCAH, KENTUCKY ENTERPRISE FUNDS COMBINING BALANCE SHEET JUNE 30, 2001 ASSETS Solid Wastewater/ Civic Waste Stormwater Center TISA Combined Current Assets: Fund Fund Fund Fund Total Cash and cash equivalents $ 520,219 $184,588 $ 27,872 $ 12,540 $ 745,219 Investments 900,000 - - - 900,000 Accounts receivable 22,598 - - 21,688 44,286 Notes receivable 168,500 - - - 168,500 Interest receivable 19,283 - - - 19,283 Due from other funds - - - 13,009 13,009 Inventory 359 - - - 359 Total current assets 1,630,959 184,588 27,872 47,237 1,890,656 Property and Equipment: Land 65,908 - - - 65,908 Buildings 40,658 - 284,224 - 324,882 Machinery and equipment 3,273,513 - 17,491 328,929 3,619,933 Less accumulated depreciation (2,303,474) - (122,096) (72,041) (2,497,611) Total property and equipment 1,076,605 - 179,619 256,888 1,513,112 TOTAL ASSETS $2,707,564 $184,588 $207,491 $304,125 $3,403,768 LIABILITIES AND FUND EQUITY Current Liabilities: Voucher and accounts payable $ 140,030 $184,588 $ 3,825 $ 493 $ 328,936 Accrued payroll and payroll taxes 18,480 - - - 18,480 Current maturities of long-term debt 42,000 - - - 42,000 Due to other funds - - - 24,685 24,685 Total current liabilities 200,510 184,588 3,825 25,178 414,101 Long -Term Debt: Accrued compensation absences 11,398 - - - 11,398 Fund Equity: Contributed capital - - 167,400 256,888 424,288 Retained earnings - unreserved 2,495,656 - 36,266 22,059 2,553,981 Total fund equity 2,495,656 - 203,666 278,947 2,978,269 TOTAL LIABILITIES AND FUND EQUITY $2,707,564 $184,588 $207,491 $304,125 $3,403,768 See auditor's report on page 13. -92- Exhibit E-2 CITY OF PADUCAH, KENTUCKY ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30, 2001 RETAINED EARNINGS, JUNE 30, 2001 $2,495,656 $ - $ 36,266 $ 22,059 $2,553,981 See auditor's report on page 13. -93- Solid Wastewater/ Civic Waste Stormwater Center TISA Combined Operating Revenues: Fund Fund Fund Fund Total Charges for services $3,184,393 $ - $ 22,296 $ 73,400 $3,280,089 Other 6,164 - - - 6,164 Total operating revenues 3,190,557 - 22,296 73,400 3,286,253 Operating Expenses: Cost of sales and service 2,808,633 - 25,665 63,882 2,898,180 Depreciation and amortization 328,963 - 14,287 48,027 391,277 Total operating expenses 3,137,596 - 39,952 111,909 3,289,457 Operating income (loss) 52,961 - (17,656) (38,509) (3,204) Nonoperating Revenues (Expenses): Investment income 78,791 - 1,148 - 79,939 Gain (loss) on disposal of property and equipment (3,965) - - - (3,965) Total nonoperating revenues (expenses) 74,826 - 1,148 - 75,974 Income (loss) before operating transfers 127,787 - (16,508) (38,509) 72,770 Operating Transfers In (Out): Operating transfers in - - 10,000 12,541 22,541 Operating transfers out (520) - - - (520) Total operating transfers in (out) (520) - 10,000 12,541 22,021 Net income (loss) 127,267 - (6,508) (25,968) 94,791 Add: Depreciation on property and equipment funded by contributed capital - - 5,400 48,027 53,427 Retained earnings, July 1, 2000 2,368,389 - 37,374 - 2,405,763 RETAINED EARNINGS, JUNE 30, 2001 $2,495,656 $ - $ 36,266 $ 22,059 $2,553,981 See auditor's report on page 13. -93- CITY OF PADUCAH, KENTUCKY ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2001 Cash Flows From Operating Activities: Operating income (loss) Adjustments to reconciled operating income (loss) to net cash provided by operating activities: Depreciation and amortization (Increase) decrease in: Receivables Increase (decrease)in: Accounts payable and accrued expenses Net cash provided (used) by operating activities Cash Flows from Noncapital Financing Activities: Operating transfers in Operating transfers out Net cash provided (used) by capital and related financing activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Proceeds from sale of capital assets Net cash provided (used) by capital and related financing activities Cash Flows from Investing Activities: Purchase of investment securities Interest on cash and investments Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, July 1, 2000 CASH AND CASH EQUIVALENTS, JUNE 30, 2001 See auditor's report on page 13. Exhibit E-3 Solid Wastewater/ Civic Waste Stormwater Center TISA Combined Fund Fund Fund Fund Total $ 52,961 $ - $(17,656) $(38,509) $ (3,204) 328,963 - 14,287 48,027 391,277 128,821 - - (9,084) 119,737 (4,420) 10,000 3,672 (439) 8,813 506,325 10,000 303 (5) 516,623 - - 10,000 12,541 22,541 (520) - - - (520) (520) - 10,000 12,541 22,021 (142,921) - (3,546) - (146,467) Art - - - A61 (142,460) (400,000) 78,791 - (3,546) - 1,148 (146,006) - (400,000) 79,939 (321,209) - 1,148 - (320,061) 42,136 10,000 7,905 12,536 72,577 478,083 174,588 19,967 4 672,642 $ 520,219 $ 184,588 $ 27,872 $ 12,540 $ 745,219 -94- CITY OF PADUCAH, KENTUCKY SOLID WASTE FUND SCHEDULE OF OPERATING REVENUES AND EXPENSES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Operating Revenues: Charges for services Other Total operating revenues Operating Expenses: Solid waste administration Residential collection Commercial collection Composting and recycling Bulk, brush and leaf Leave expense Depreciation Total operating expenses See auditor's report on page 13. -95- Exhibit E-4 $3,335,805 $3,137,596 $198,209 Variance - Favorable Budget Actual (Unfavorable) $3,184,395 $3,184,393 $ (2) 6,165 6,164 (1) $3,190,560 $3,190,557 $ (3) $ 388,975 $ 388,880 $ 95 991,530 991,528 2 938,890 938,887 3 266,220 163,710 102,510 368,195 368,161 34 - (42,533) 42,533 381,995 328,963 53,032 $3,335,805 $3,137,596 $198,209 CITY OF PADUCAH, KENTUCKY CIVIC CENTER FUND SCHEDULE OF OPERATING REVENUES AND EXPENSES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Operating Revenues: Charges for services Operating Expenses: Civic Center operations Depreciation Total operating expenses See auditor's report on page 13. -96- Budget Actual $22,295 $22,296 $29,300 $25,665 14,290 14,287 $43,590 $39,952 Exhibit E-5 Variance - Favorable (Unfavorable) $ 1 $3,635 3 $3,638 CITY OF PADUCAH, KENTUCKY TISA FUND SCHEDULE OF OPERATING REVENUES AND EXPENSES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Operating Revenues: Charges for services Operating Expenses: Cost of service Depreciation Total operating expenses See auditor's report on page 13. -97- Exhibit E-6 Variance - Favorable Budget Actual (Unfavorable) 60,860 73,400 12,540 $ 63,895 $ 63,882 13 48,030 48,027 3 $111,925 $111,909 $ 16 COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 309 2001 �, r� �� 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 coverages on a continuing basis be financed primarily through user charges. ASSETS Current Assets: Cash and cash equivalents Investments Accounts receivable Interest receivable Inventory Total current assets Property and Equipment: Buildings Machinery and equipment Less accumulated depreciation Total property and equipment TOTAL ASSETS LIABILITIES AND FUND EQUITY Current Liabilities: Voucher and accounts payable Accrued payroll and payroll taxes Current maturities of long-term debt Liability for unpaid claims Due to other funds Total current liabilities Long -Term Debt: Accrued compensated absences Fund Equity: Contributed capital Retained earnings - unreserved Total fund equity TOTAL LIABILITIES AND FUND EQUITY See auditor's report on page 13. $ 6,953 $ - $ 15,016 $ 2,722 $ 24,691 5,494 - - - 5,494 15,000 - - - 15,000 - - - 285,000 285,000 - - - 10,406 10,406 27,447 - 15,016 298,128 340,591 32,530 - - - 32,530 - 381,523 - - 381,523 138,858 1,262,186 20,477 (119,764) 1,301,757 138,858 1,643,709 20,477 (119,764) 1,683,280 $ 198,835 $1,643,709 $ 35,493 $178,364 $2,056,401 -98- Exhibit F-1 CITY OF PADUCAH, KENTUCKY INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET JUNE 30, 2001 Health Fleet Fleet Lease Insurance Insurance Combined Maintenance Trust Fund Fund Total $ 309 $ 182,669 $ 35,493 $ - $ 218,471 - 263,767 - - 263,767 - - - 178,364 178,364 - 5,487 - - 5,487 133,278 - - - 133,278 133,587 451,923 35,493 178,364 799,367 20,000 - - - 20,000 208,980 1,643,414 - - 1,852,394 (163,732) (451,628) - - (615,360) 65,248 1,191,786 - - 1,257,034 $ 198,835 $1,643,709 $ 35,493 $178,364 $2,056,401 $ 6,953 $ - $ 15,016 $ 2,722 $ 24,691 5,494 - - - 5,494 15,000 - - - 15,000 - - - 285,000 285,000 - - - 10,406 10,406 27,447 - 15,016 298,128 340,591 32,530 - - - 32,530 - 381,523 - - 381,523 138,858 1,262,186 20,477 (119,764) 1,301,757 138,858 1,643,709 20,477 (119,764) 1,683,280 $ 198,835 $1,643,709 $ 35,493 $178,364 $2,056,401 -98- CITY OF PADUCAH, KENTUCKY INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30, 2001 Operating Revenues: Charges for services Operating Expenses: Vehicle maintenance Administrative Insurance Leave expense Depreciation Total operating expenses Operating income (loss) Nonoperating Revenues (Expenses): Investment income Other income Gain (loss) on disposal of property and equipment Total nonoperating revenues (expenses) Income (loss) before operating transfers Operating Transfers In (Out): Operating transfers in Net income (loss) Retained earnings (deficit), July 1, 2000 RETAINED EARNINGS, JUNE 30, 2001 See auditor's report on page 13. Fleet Maintenance $ 256,363 Exhibit F-2 Health Fleet Lease Insurance Insurance Combined Trust Fund Fund Total $ 229,495 $738,749 $2,602,764 $3,827,371 345,315 - - - 345,315 - 1,100 - 1,000 2,100 - - 843,238 2,994,374 3,837,612 (4,590) - - - (4,590) 13,139 211,241 - - 224,380 353,864 212,341 843,238 2,995,374 4,404,817 (97,501) 17,154 (104,489) (392,610) (577,446) - 16,957 - - 16,957 - 18,467 - - 18,467 (609) - - - (609) (609) 35,424 - - 34,815 (98,110) 52,578 (104,489) (392,610) (542,631) 166,000 409,129 - - 575,129 67,890 461,707 (104,489) (392,610) 32,498 70,968 800,479 124,966 272,846 1,269,259 $ 138,858 $1,262,186 $ 20,477 $ (119,764) $1,301,757 -99- CITY OF PADUCAH, KENTUCKY INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2001 Cash Flows from Operating Activities: Operating income (loss) Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation (Increase) decrease in: Receivables Other assets Inventories Increase (decrease)in: Accounts payable and accrued expenses Net cash provided (used) by operating activities Cash Flows from Noncapital Financing Activities: Operating transfers in Cash Flows from Capital and Related Financing Activities: Acquisition of capital assets Proceeds from the sale of capital assets Net cash provided (used) by capital and related financing activities Cash Flows from Investing Activities: Purchase of investment securities Interest on cash and investments Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, July 1, 2000 CASH AND CASH EQUIVALENTS, JUNE 30, 2001 See auditor's report on page 13. Exhibit F-3 (41,750) (527,993) - (13,767) 16,957 3,190 - - (569,743) (13,767) 16,957 3,190 9 112,964 (90,392) (4) 22,577 300 69,705 125,885 4 195,894 $ 309 $182,669 $ 35,493 $ - $ 218,471 -100- Health Fleet Fleet Lease Insurance Insurance Combined Maintenance Trust Fund Fund Total $(97,501) $ 17,154 $ (104,489) $ (392,610) $ (577,446) 13,139 211,241 - - 224,380 - 243 - 144,344 144,587 3,451 - - - 3,451 (43,330) - 14,097 248,262 219,029 (124,241) 228,638 (90,392) (4) 14,001 166,000 409,129 - - 575,129 (41,750) (546,460) - - (588,210) - 18,467 - - 18,467 (41,750) (527,993) - (13,767) 16,957 3,190 - - (569,743) (13,767) 16,957 3,190 9 112,964 (90,392) (4) 22,577 300 69,705 125,885 4 195,894 $ 309 $182,669 $ 35,493 $ - $ 218,471 -100- CITY OF PADUCAH, KENTUCKY FLEET MAINTENANCE SCHEDULE OF OPERATING REVENUES AND EXPENSES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Operating Revenues: Charges for services Operating Expenses: Vehicle maintenance Leave expense Depreciation Total operating expenses See auditor's report on page 13. -101- Exhibit F-4 Variance - Favorable Budget Actual (Unfavorable) $256,365 $256,363 $ (2) $357,225 $345,315 $11,910 - (4,590) 4,590 13,140 13,139 1 $370,365 $353,864 $16,501 CITY OF PADUCAH, KENTUCKY FLEET LEASE TRUST SCHEDULE OF OPERATING REVENUES AND EXPENSES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Operating Revenues: Charges for services Operating Expenses: Administrative Depreciation Total operating expenses See auditor's report on page 13. -102- Exhibit F-5 Variance - Favorable Budget Actual (Unfavorable) $229,495 $229,495 $ - $ 1,100 $ 1,100 $ - 211,245 211,241 4 $212,345 $212,341 $ 4 CITY OF PADUCAH, KENTUCKY INSURANCE FUND SCHEDULE OF OPERATING REVENUES AND EXPENSES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Operating Revenues: Charges for services Operating Expenses: Insurance expense See auditor's report on page 13. -103- Exhibit F-6 Variance - Favorable Budget Actual (Unfavorable) $738,755 $738,749 $ (6) $828,280 $843,238 $ (14,958) CITY OF PADUCAH, KENTUCKY HEALTH INSURANCE FUND SCHEDULE OF OPERATING REVENUES AND EXPENSES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2001 Operating Revenues: Charges for services Operating Expenses: Administration Insurance expense Total operating expenses See auditor's report on page 13. -104- Exhibit F-7 Variance - Favorable Budget Actual (Unfavorable) 2,602,750 $2,602,764 14 $ 1,000 $ 1,000 $ - 2,994,375 2,994,374 1 $2,995,375 $2,995,374 $ 1 COMPREHENSIVE ANNUAL FINANCIAL REPORT L YEAR ENDED JUNE 309 2001 TRUST AND AGENCY 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. Oak Grove Cemetery Trust and Rinkleff Estate — to account for assets held by the City in the capacity of trustee for specified purposes. Property Tax Agency Fund — to account for the collection and distribution of property tax resources received by the City of Paducah for the General Fund, special voted funds and other governmental agencies for which the City acts as collection agent. 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. CITY OF PADUCAH, KENTUCKY TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET JUNE 30, 2001 ASSETS Cash and cash equivalents Investments Receivables: Interest Property taxes (net of allowances for uncollectibles) Due from other taxing agencies TOTAL ASSETS LIABILITIES AND FUND BALANCES Liabilities: Voucher and accounts payable Payroll taxes and withholdings payable Due to other funds Due to other taxing agencies Total liabilities Fund Balances: Reserved for employees' pension benefits Reserved for trust purpose Undesignated Total fund balances TOTAL LIABILITIES AND FUND BALANCES See auditor's report on page 13. -105- Exhibit G-1 Pension Trust Police Appointive and Firefighters' Employees' Retirement Fund Pension Fund $ 1,431,274 $ 58,613 9,839,962 302,126 74,892 940 $11,346,128 $361,679 $ - $ 240 240 11,346,128 361,439 11,346,128 361,439 $11,346,128 $361,679 Nonexpendable Expendable Trust Trust Agency Oak Grove Cemetery Rinkleff Combined Trust Estate Total Total $13,085 $13,392 $ 277,469 $ 1,793,833 50,924 - - 10,193,012 - - - 75,832 - - 204,373 204,373 - - 2,265 2,265 $64,009 $13,392 $ 484,107 $12,269,315 $ - $ 240 - 279,735 279,735 - 101,991 101,991 102,381 102,381 484,107 484,347 - - - 11,707,567 64,009 - - 64,009 - 13,392 - 13,392 64,009 13,392 - 11,784,968 $64,009 $13,392 $ 484,107 $12,269,315 -106- CITY OF PADUCAH, KENTUCKY PENSION TRUST FUNDS COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS YEAR ENDED JUNE 30, 2001 Additions: Contributions: Employer Plan member Interfund transfers Total contributions Investment income: Net appreciation (depreciation) in fair value of investments Net gain (loss) on sale of investments Interest and dividends Total investment income Total additions Deductions: Benefits Administrative expense Total deductions Net increase (decrease) Net assets held in trust for pension benefits: July 1, 2000 JUNE 30, 2001 See auditor's report on page 13. -107- Exhibit G-2 Police and Appointive Firefighters' Employees' Retirement Pension Totals $ 204,039 $ - $ 204,039 28,482 - 28,482 660,987 75,000 735,987 893,508 75,000 968,508 (735,323) - (735,323) 168,236 - 168,236 865,578 23,107 888,685 298,491 23,107 321,598 1,191,999 98,107 1,290,106 1,742,179 104,228 1,846,407 18,445 5,068 23,513 1,760,624 109,296 1,869,920 (568,625) (11,189) (579,814) 11,914,754 372,627 12,287,381 $11,346,129 $361,438 $11,707,567 CITY OF PADUCAH, KENTUCKY OAK GROVE CEMETERY TRUST NONEXPENDABLE TRUST FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2001 Operating Revenues: Intergovernmental revenues Operating Expenses: Administrative costs Operating income Nonoperating Revenues (Expenses): Investment income Net income Fund balance, July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -108- Exhibit G-3 $ 2,590 221 2,369 3,239 5,608 58,401 $64,009 CITY OF PADUCAH, KENTUCKY OAK GROVE CEMETERY TRUST NONEXPENDABLE TRUST FUND STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2001 Cash Flows from Operating Activities: Operating income Cash Flows from Investing Activities: Purchase of investment securities Proceeds from sales and maturities of investment securities Investment income Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, July 1, 2000 CASH AND CASH EQUIVALENTS, JUNE 30, 2001 See auditor's report on page 13. -109- Exhibit G-4 $ 2,369 (16,308) 15,000 4,283 2,975 5,344 7,741 $13,085 CITY OF PADUCAH, KENTUCKY RINKLEFF ESTATE EXPENDABLE TRUST FUND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2001 Revenues: Interest Expenditures: Administrative costs Excess of revenues over (under) expenditures Fund balance, July 1, 2000 FUND BALANCE, JUNE 30, 2001 See auditor's report on page 13. -110- Exhibit G-5 $ 727 50 677 12,715 $13,392 Exhibit G-6 CITY OF PADUCAH, KENTUCKY AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED JUNE 30, 2001 See auditor's report on page 13. Balance Balance Property Tax Fund: July 1, 2000 Additions Deductions June 30, 2001 Assets: Cash and cash equivalents $ (2,581) $ 9,224,081 $ 9,223,766 $ (2,266) Taxes receivable (net of allowances of uncollectibles) 261,963 9,166,491 9,224,081 204,373 Due from other taxing agencies 2,014 105,106 104,855 2,265 Total assets $261,396 $18,495,678 $18,552,702 $204,372 Liabilities: Due to other funds $153,063 $ 4,264,041 $ 4,315,113 $101,991 Due to other taxing agencies 108,333 5,055,344 5,061,296 102,381 Due to taxpayers - 17,394 17,394 - Total liabilities $261,396 $ 9,336,779 $ 9,393,803 $204,372 Payroll Fund: Assets: Cash and cash equivalents $251,469 $ 9,558,154 $ 9,529,888 $279,735 Liabilities: Payroll taxes and withholdings payable $251,469 $ 9,558,154 $ 9,529,888 $279,735 Totals - All Agency Funds: Assets: Cash and cash equivalents $248,888 $18,782,235 $18,753,654 $277,469 Taxes receivable (net of allowances for uncollectibles) 261,963 9,166,491 9,224,081 204,373 Due from other taxing agencies 2,014 105,106 104,855 2,265 Total assets $512,865 $ 28,053,832 $ 28,082,590 $484,107 Liabilities: Payroll taxes and withholdings payable $251,469 $ 9,558,154 $ 9,529,888 $279,735 Due to other funds 153,063 4,264,041 4,315,113 101,991 Due to other taxing agencies 108,333 5,055,344 5,061,296 102,381 Due to taxpayers - 17,394 17,394 - Total liabilities $512,865 $18,894,933 $18,923,691 $484,107 See auditor's report on page 13. FINANCIAL STATEMENTS GENERAL FIXED ASSETS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 309 2001 GENERAL FIXED ASSETS This account group is used to account for the fixed assets of the City other than those accounted for in the Enterprise Funds. THIS PAGE INTENTIONALLY LEFT BLANK CITY OF PADUCAH, KENTUCKY COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS BY SOURCE JUNE 30, 2001 AND 2000 General Fixed Assets: Land Buildings and improvements Equipment Furnishings and fixtures Vehicles Total general fixed assets Investment in General Fixed Assets From: Investment in property acquired prior to July 1, 1989 - source unidentified General Fund Special Revenue Funds Total investment in general fixed assets See auditor's report on page 13. -112- Exhibit H-1 2001 2000 $ 5,054,656 $ 5,054,656 13,026,970 13,026,970 5,279,401 5,207,569 250,828 250,828 4,382,397 4,463,888 $27,994,252 $28,003,911 $ 9,190,778 $ 9,773,025 16,699,166 16,134,573 2,104,308 2,096,313 $27,994,252 $28,003,911 CITY OF PADUCAH, KENTUCKY SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY JUNE 30, 2001 Function and Activity General Fund: General government Finance Information systems Inspection Planning Police Fire Public works Parks Cable authority Human rights Personnel Engineering services Total general fund Special Revenue Funds: Emergency communications Court awards Federal, state, and local grant funds Total special revenue funds TOTAL GENERAL FIXED ASSETS See auditor's report on page 13. -113- Exhibit H-2 Buildings and Land Improvements Equipment $1,402,417 $ 7,419,644 $1,574,390 - - 106,193 - - 22,304 - - 82,231 213,644 - 111,674 27,956 837,303 606,683 119,000 1,335,056 408,649 3,000 1,233,021 655,510 2,804,512 1,692,635 233,623 - - 76,651 - - 11,459 - - 24,946 51,000 83,660 175,605 4,621,529 12,601,319 4,089,918 20,000 147,594 861,866 - - 142,914 413,127 278,057 184,703 433,127 425,651 1,189,483 $5,054,656 $13,026,970 $5,279,401 Furnishings and Fixtures Vehicles Total $ 81,305 $ 36,198 $10,513,954 1,394 - 107,587 _ - 22,304 29,505 53,294 165,030 11,171 26,164 362,653 2,313 849,260 2,323,515 44,672 2,219,924 4,127,301 11,659 1,038,086 2,941,276 38,119 41,675 4,810,564 - - 76,651 _ - 11,459 _ - 24,946 7,047 85,392 402,704 227,185 4,349,993 25,889,944 23,643 - 1,053,103 - 32,404 175,318 _ - 875,887 23,643 32,404 2,104,308 $250,828 $4,382,397 $27,994,252 -114- i Exhibit H-3 See auditor's report on page 13. -115- CITY OF PADUCAH, KENTUCKY SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY YEAR ENDED JUNE 30, 2001 Function and Activity General General Fixed Assets Fixed Assets General Fund: July 1, 2000 Additions Deletions June 30, 2001 General government $10,508,188 $ 5,766 $ - $10,513,954 Finance 118,907 6,495 17,815 107,587 Inspection 179,910 - 14,880 165,030 Information systems - 22,304 - 22,304 Planning 379,364 3,329 20,040 362,653 Police 2,332,746 45,204 54,435 2,323,515 Fire 4,141,977 - 14,676 4,127,301 Public works 2,473,593 468,183 500 2,941,276 Parks 5,257,153 13,312 459,901 4,810,564 Cable authority 76,651 - - 76,651 Human rights 11,459 - - 11,459 Personnel 24,946 - - 24,946 Engineering services 402,704 - - 402,704 Total general fund 25,907,598 564,593 582,247 25,889,944 Special Revenue Funds: Emergency communications 1,053,103 - - 1,053,103 Court awards 167,323 7,995 - 175,318 Federal and state grant funds 875,887 - - 875,887 - Total special revenue funds 2,096,313 7,995 - 2,104,308. TOTAL GENERAL FIXED ASSETS $28,003,911 $572,588 $582,247 $27,994,252 See auditor's report on page 13. -115- r� `J ' CITY OF PADUCAH, KENTUCKY FINANCIAL STATEMENTS GENERAL LONG—TERM DEBT L. J _ l L 1 LJ L J 1 COMPREHENSIVE ANNUAL FINANCIAL REPORT s YEAR ENDED JUNE 309 2001 L J GENERAL LONG-TERM DEBT This account group is used to account for outstanding principal balances of the City's long-term debt and compensated absences. Exhibit I-1 CITY OF PADUCAH, KENTUCKY STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT GENERAL LONG-TERM DEBT ACCOUNT GROUP YEAR ENDED JUNE 30, 2001 See auditor's report on page 13. -116- Debt Balance New Debt Payment or Balance July 1, 2000 Incurred Reduction June 30, 2001 General fund accrued compensated absences $1,725,478 $ - $434,683 $ 1,290,795 General bond obligation - 9,290,000 - 9,290,000 Capital lease 521,966 - 140,636 381,330 TOTAL GENERAL LONG-TERM DEBT ACCOUNT GROUP $2,247,444 $ 9,290,000 $575,319 $10,962,125 See auditor's report on page 13. -116- COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 309 2001 L 0 M O O 00 M - �10 O� N t- i. l� to d' N N �-0 M kn 00 Ln pro W ' , 110 It 00 \C O% � � r-. 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O N -117- O z 0� CI 00 CN O kn r- \O �--� C1 C1 O 0000 01 M M M N M On 01 O \O O � C M N kn .--i V1 00 01 00 1p O N — — Cl) 60S O W) t` N � 00-- t` N t` 6 ON \C kn 00 in N t` �o M 00 \p - O It Ln Lr) O l (71 \O dt .0 Vi O1 N 01 - Ln \C N' O M kn � 01 - r- O 10 N 00 0 kn O 01 OM1 O O N O O - ke) -- OHO - N to �I- IC \0 V') 69 ++ r a1 01 N to M D1 t` N kr) a\ N to 00 O O1 Ln V) O 00 O l- 00 kn O M IY [- kn 10 V1 O M M M 00 \C 00 l� V) N O 01 l0 V1 kn O N O 01 V) 1p M N N M M dt V vi vi �t \C It N t1r) — 00 10 V') V') \C h \O It 00 N 00 01 00 \C — N 01 \0 Vl 110 Lr) CN M 00 t-- \C *6 o l� 00 Q1 M r-0 N N N r- r- 101 ICC \C ONO Nr-- C*1 CC Q ON M ON ON kn CN 1C CN l� CN ,-.: 01 O O -- 6A 01 Q\ D, O 0� CI 00 CN O kn r- \O �--� C1 C1 O 0000 01 M M M N M On 01 O \O O � C M N kn .--i V1 00 01 00 1p O N — — Cl) 60S O W) M N O O t` N t` 4 00 1p M M 1C \p 00 Vi O1 N 01 t r+ Ln \C N' O M kn l� 01 M y O 10 N 00 kn \0 01 O C 00 W kn d' - O 0�0 OHO O Ln kn N M l� M 00 l- 00 kn O C- 00 N O o0 \C 00 l� V) N O M 01 l0 V1 kn O N O 01 V) 1p M n vi vi �t \p V1 M 10 TT 10 kn O d M N o l� 00 Q1 N N N N 69 CC Q ON M ON ON kn CN 1C CN l� CN 00 C� 01 O O -- a1 01 Q\ D, O C� V Q1 Q\ 01 Q1 01 0101 Q\ Q1 O 01 0\ 01 01 O -118- O C1 00 ct O C\ O 00 vl M N O1 O kn \p a,\ � It h ct O O kn M N O M kn l 0000 00 ONO h 00 O ~ M U 01 CN a� kn O d O -- to N O 00 \O cC y It kn 00 O k Vl p i+ o0 O In an \ O O \O M C i7 r0. kn t� O to N \O N O*, kn oo kn \C kn W) kr) .- M h a *4 rs ON O, O W iE M O1 -+ V'1 M N N � 00 110 � 12 Q p 0 h to — It h \O M 00 N N to r- 00 I- M M 01 00 cd oo O1 \O u o v. ON °-° rn 00 � t-- x v, ccl, p ON \O cd O N Ol\ 00 O vi N 01 kr (il h Cl\ N M -- .-y M 00 h H - - N N N N N '-r � U to D1 O1 M N O_ O kn 0000^ O Q N Ohl\ 0000 00 O V _ _ _ --� 0000 in �' O\ M 00 to U y. NEf3 N N N •- N M N N Cd W 4.i 0 Cd ^O \C tf) h kn O 00 h O\ kn 00 Cd N � h 00 \O 00 00 r O > p O O y N DD � h O M N N vi N N In n rrn pig. Q�, l� kn 00 00 r- p G \O 00 O\ O\ Q\ Cl M O as eq o UCd 'O b 00 \,oN M O \,o N O t- 00 ON O y 'O p p y p oo �n O �n \O \O h o0 00 O 4-4 C 3 0 0 (- O 00 N \O N ON l� N M U O 01 00 M ch - N h 00 y O O� to O^ � >1 m M �t d• �' c1' d' M M M O r•,i m M Q\ N \O M � t-: � O M N O O O +p+ 00 vi \p - \p to to oo O M \p oo \O o0 h o0 Uo 1:t O U • O r. O O N En iwCC! C� N M It kn \O h 00 O1 O - +Cd' cd C> Ol� ON O1 O\ C1 O1 O1 O1 O O m m �I O\ O\ a\ O\ O1 O1 O1 O1 O O O a3 N N vN M 4 � \O h 00 O1 O O\ D1 O\ 01 Q\ ON O\ O\ D1 O O\ D\ O\ O\ O1 O\ 01 ON O1 C) z -119- TABLE 4 CITY OF PADUCAH, KENTUCKY SECURED TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (1) Includes current year real and personal property tax, franchise, auto and bank shares. -120- (1) (1) Percent of Total Total Levy Fiscal Year Levy Collections Collected 1991-1992 $4,257,837 $4,240,223 99.6% 1992-1993 4,463,877 4,446,386 99.6% 1993-1994 4,726,013 4,713,807 99.7% 1994-1995 4,998,288 4,981,828 99.6% 1995-1996 5,040,252 5,022,419 99.6% 1996-1997 4,361,298 4,350,475 97.8% 1997-1998 4,417,910 4,373,272 99.0% 1998-1999 4,614,749 4,602,800 99.7% 1999-2000 4,428,970 4,384,681 99.0% 2000-2001 4,549,413 4,406,600 96.9% (1) Includes current year real and personal property tax, franchise, auto and bank shares. -120- H P4 W a a a O k 04 F � u a F=,ACA >4 u OF W A W -121- C) 110 M oll ON1 O1 M \O to .� O O m ie 9F dt ;t 3F 0�0 ONi O N 69 O d' 00 00 t` ON � d' M M %0 M M On 00 DD d' 00 00 00 M N N � 0000 � 0000 N 001 00 to %A r'+ M '::t' to 00(01 00 W to kf) to to V1 to to to to Q Wl rn O d to to O l� 00 a, M Gn W 01 00 wl CD 00 10 O to O CQ O p O O N \O \O u rn O r` M v to oo to v o0 \O �--� \p 01 N N OO O M H F a O N M N M Ct \O 69 00 00 .--i l� O \O M 00 O On \O to M N M M CC O31 O \O O1 00 '�\t M o M N M \o v 01 0�1 O O00 N N N M 69 M to to O t� "It ON 00 0 00 r v00 M d' �t M m M N \00 cr Cl) r` 00 01 ros O1 — a, r` � N to 00 M w y to 00 (O1 N ke) clq M \D M to \p O\ M 00 00 to V V r" 00 M It M r- M O C` tn - O O 01 O 000 N O \O to to N O n M 00 Cf) 00 Ow 0000 N O O 1.0 N 01 a s M Cl) M M M M M M to to 00 M 00 to O00 N \O N ' ON1 to O 0 �t t` O N M a01 0 M to O M [ � O 00 o0 01 N W tri \O M C1 to O en t` O ZT to t!j kr) \gyp 00 0000 OC1 0O1 69 N M t7' to \O 00 d O O 0�1 0�1 0�i 0�1 0�1 0�1 Obi 0�1 N N N M d to \p l� 00 01 O V 01 01 D\ 01 O\ 01 ON 01 O1 O 01 O\ D1 Q1 01 01 Q\ 01 d\ O -121- z O c7 w E"q U OA5~g� UE"'s' H a w a O a a -122- n v C t O 00 N d' O) p 01 C 00 00 00 00 � V- l- 00 [- 110 O ^C L O O O O O O E O U �;I o oo r- O, O\ `° o z w R O O O O O O O O O O �v a 'O L R O R 0M ON NR WO M M O M O Cl) O Cl) O M O M O O N O N O O N kn O et [- 00 O t— V ON i tn tn vfi tr) \0 � \4 W) tn 4n A a 0 O y a I0 ON 00 w �a L H O a C O M h w O O O O O y CD O O W i C O O 0 0 O O 0 O O ' LR. L O O O O O O O O O � a v wl .c x W 0 0 0 0 0 0 0 0 0 o ON 01 ON L � � � � i a C C V" 00 N N 00 \D r r 00 O O y to in kn M M N N O O O N f%+ f� N a.+ f� a-+ y R N C� ON ON ON ON as 01 O\ O O M V1 CQ t> C� N C� ON ON O1 �O C1 [� O\ 00 ON O, O\ O O 01 O� 01 O1 Q\ D\ ON O W ,�. N -122- n v H U H W �a UWwv� z c) WW � �xac� z V aH�H o a V0 H A 0 00 C*) kn o ai Ri 00 C1 M 01 M kr) M zA 10 oaw�� r v1 kn \0 N O i �zA> � 6 C 00 k Q1 00 — C) cl� Cl O N V C1 00 M C1 M 01 00 r- C\ 00 C*l C\ O D\ O 00 y �+ C1 00 C , (0 O Q1 Cl\ O �O OM M Zb O N 0000 o Q c M - o Pa � v1 110 N a; 6s -+ M d1 N O \c l-- - "O O 00 O 00 00 00 l- \C \O M y M O \O o0 0o vl 00 N C\ M p b ct' (3; — CN 110 110 \O .--� •-: cq ° � o rn 000 "o to kn k W) kn a; N O [ M (7 \O n M M O O y C) It O Q1 00 r- M T M y -- M "Z� N N M h �--� C1 M M "O [- M N l� M 0 M r- 00 \10 O \C l- M � N N N M Gq a kn V) � tn V) kn Lo to Lo C> kn V) v, tn v) kn Ln v, Ln o vN N N N N N N N N M p+ N N N N N N N N N N O a 6 C Q\ Q1 D1 C) cl� Cl O N V C1 N Cl� M C1 " O\ D\ \,o C\ r- C\ 00 C*l C\ O D\ O D1 C) C, Q1 Cl\ O -123- 0 O cn TABLE 8 CITY OF PADUCAH, KENTUCKY RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES LAST TEN FISCAL YEARS (1) Includes the General Fund and Municipal Aid Fund * Includes in -substance defeasance of Kentucky League of Cities - Pooled Leasing debt. -124- Ratio of (1) Debt Service Total To Total Total General Governmental Debt Government Fund Type Fiscal Year Principal Interest Service Expenditures Expenditures 1991-1992 $ 496,461 $302,381 $ 798,842 $14,388,617 5.6% 1992-1993 292,759 327,436 620,195 15,064,088 4.1% 1993-1994 444,344 379,956 824,300 15,928,276 5.2% 1994-1995 913,564 405,000 1,318,564 16,744,678 7.9% 1995-1996 438,141 355,361 793,502 17,737,044 4.5% 1996-1997 4,119,275 * 431,669 4,550,944 19,823,351 22.9% 1997-1998 150,709 46,829 197,538 18,787,240 1.1% 1998-1999 170,615 35,891 206,506 21,306,659 1.0% 1999-2000 134,295 30,536 164,831 19,817,326 0.8% 2000-2001 140,636 25,752 166,388 20,677,530 0.8% (1) Includes the General Fund and Municipal Aid Fund * Includes in -substance defeasance of Kentucky League of Cities - Pooled Leasing debt. -124- TABLE 9 CITY OF PADUCAH, KENTUCKY COMPUTATION OF LEGAL DEBT MARGIN YEAR ENDED JUNE 30, 2001 Net assessed value Add exemption Total assessed value Debt limit - 10% of total assessed value (1) Debt outstanding: Obligation under capital lease General oligations bonds outstanding Total Less debt not subject to limit Gross bonded debt Less amount available in debt service funds Net bonded indebtedness subject to limit Legal Debt Margin (1) Section 158 of the Commonwealth of Kentucky states: $ 381,330 9,290,000 9,671,330 9,671,330 232,641 $1,543,933,331 58,908,995 $1,602,842,326 $ 160,284,233 9,438,689 $ 150,845,544 "Cities shall not be authorized or permitted to incur indebtedness to an amount, including existing indebtedness, in the aggregate exceeding the following named 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." -125- 0000 000 v F oM .4 00 o 00 Z N NN NN M M M N kn rr 00 v tf) O r to v �r 0 V 00 C � M O tr) M N lr ^+ r- C1 00 ti 7 O O O O � � � 000 v 00 .� � O * * 00 0 � � y° 000 ~ vi t- 1 Com, O M A C,i rn o0 00 00 ON r- tl- O 0 O1 N m 00 110 69 N 0000 000 v F oM .4 00 o 00 Z N NN NN M M M N kn rr 00 v tf) O r to v �r 0 V 00 C � N y a1 O lr ^+ r- C1 00 M l- O kn O N � 00 'T 00 00 .� O 00 0 � � --. N ~ O O , � Com, C M 000 C,i 0�0 N M F It \O O O N O1 N m 00 110 69 N M M W) M M N M 0000 000 v F oM .4 00 o 00 Z N NN NN M M M N .. I00 ON 00 �10 z O N N N N N N N MM - 0 r- 00 � 00 ON 00 0 V 00 C � N y M O lr N O M V1 O� N O kn O N � 00 'T 00 00 .� O 00 0 � � --. N O kr -,tM V'1 O n N M \D (= M F 00 N M O O l� N m 00 110 6s N M M W) M M N M .. I00 ON 00 �10 z O N N N N N N N MM - -126- 0 � 00 N r M � N M M O N N lr� OM r- � It O 00 0 � � --. O N M V'1 V? 00 W \D N F (0 o o; rn O� vi o M � It o0 0`00 o 0 y C M M 00 l- Q1 \C V) 01 VI) 00 N M M dw QN o 00 00 4 00 00 00 001:T I C � kn O oN0 0o0 N M OO1 I— 't \G � M 11, V1 00 C1 00 W kn W)v, W) W) kt) V) W) tn M O w ONO O N D\ M M O 00 �CItT (D Oi _ C> b cr l c M C1 O (0 00 O 00 [- O) 011to ON 00 1 V'�O �n \10t- O M CYI NClj N N M M M M M M It O � h tr) N N O O a\ 'ct OMO L M 01 V1 't O1 00 M N O r - �y M CD 110 r -r- G 09 .M� It � ' N M N N V� O u> 00 r- r N 00 U N M M M 14 � N try L N M kf) %0 r- 00 ON O CN ON cs ON CD CD C9 CC N M 4 A \O I o0 O\ O all O -126- w O UPza�a Hid z � w H�aW a�H Q � � moa UW wA U �. wo rn O aN1 allaC, CC OO, aC, aC, O o, O kn a, 09 O a, rn o 0 ONO N O a, U-- - N M 10 1.0 to 00 Q, O a, .. M da', a, 01 Or- a` a1 O Cl t- O N kl --� C "t kn kn V) t It p N N N N N N O 6N9 i, � CN 0 a � o a° N l- O N kn l- a, l� V'1 a\ N Ln r, to to M A •p o 0 0 0 0 0 0 0 a, C, O O O .p N N a r- 00 l� (- \C � N � N k •a M t kn 00 [- � kn N a zQ A kn ll O 00 l- - knt � tn kn� ^ kr� N v t � rn 0000 o 69 OM N In Q �t 0�0 kn aC, _ Qm N o0 00 N O\ M iE dE v O 00 O M M •-- N N N M M M M 69 �. rn O aN1 allaC, CC OO, aC, aC, O o, a\ a, a, a, a, a, rn o 0 M 4 VA \L Q, O a, a, a\ a\ a, a, a, a` a, N �I -127- TABLE 12 CITY OF PADUCAH, KENTUCKY DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Sources: (1) Bureau of the Census Count - 1990 and 2000. (2) Bureau of the Census Count - 1990. (3) Board of Education; represents elementary and secondary public schools. (4) Kentucky Cabinet for Human Resources, Department for Employment Services. -128- (4) Unemployment Rate 6.3% 5.9% 5.7% 3.9% 4.4% 5.5% 4.3% 3.2% 3.8% 4.2% (1) (2) (2) (3) Per Capita Median School Fiscal Year Population Income Age Enrollment 1991-1992 27,256 $11,918 38.4 3,605 1992-1993 27,256 11,918 36.6 3,365 1993-1994 27,256 11,918 36.6 3,416 1994-1995 27,256 11,918 36.6 3,389 1995-1996 27,256 11,918 36.6 3,320 1996-1997 27,256 11,918 36.6 3,312 1997-1998 27,256 11,918 36.6 3,244 1998-1999 27,256 11,918 36.6 3,195 1999-2000 27,256 11,918 36.6 3,289 2000-2001 26,307 11,918 39.9 3,037 Sources: (1) Bureau of the Census Count - 1990 and 2000. (2) Bureau of the Census Count - 1990. (3) Board of Education; represents elementary and secondary public schools. (4) Kentucky Cabinet for Human Resources, Department for Employment Services. -128- (4) Unemployment Rate 6.3% 5.9% 5.7% 3.9% 4.4% 5.5% 4.3% 3.2% 3.8% 4.2% TABLE 13 CITY OF PADUCAH, KENTUCKY MISCELLANEOUS STATISTICAL DATA JUNE 30, 2001 Miscellaneous: Date of incorporation 1830 Form of government City Manager, Mayor and Commissioners Area - square miles 19.19 Miles of streets/paved 209 Miles of sidewalks 45 Population 26,307 Registered voters 15,117 Votes cast last general election 8,069 Number of hospitals 2 Schools: Number of public schools: High school 1 Middle school 1 Elementary 4 Head Start 1 Alternative learning center 1 Adult education 1 Students 3,037 Teachers 237 Administrative personnel 33 Support personnel 271 Parks and Recreation: Number of parks 20 Acres of parks 320 Public golf courses 2 Public swimming pools 3 Public tennis courts 6 -129- -130- TABLE 14 CITY OF PADUCAH, KENTUCKY PRINCIPAL TAXPAYERS JANUARY 1, 2001 Taxpayer Type of Business Kentucky Oaks Mall Mall Wal-Mart Retailer AmeriSource Drug wholesaler H. B. Fuller Adhesive manufacturing Lowe's Retailer Drury Inns, Inc. Motels Computer Services, Inc. Bank data processor Firstar Bank Duke & Long Fuel distributor/Gas stations VMV Locomotive remanufacturer Union Planters Bank Bank TOTAL (1) Assessed Valuation $ 45,570,900 35,688,462 21,093,262 14,219,648 13,845,576 13,629,918 12,983,718 11,964,595 11,980,316 8,134,403 5,960,502 $195,071,300 (1) Source - Property Valuation Administration; Assessed value as of January 1, 2001. -131- Percentage of Total Assessed Valuation 3.37% 2.64% 1.56% 1.05% 1.02% 1.01% 0.96% 0.88% 0.89% 0.60% 0.44% 14.42% TABLE 15 CITY OF PADUCAH, KENTUCKY COMPUTATION OF DIRECT AND OVERLAPPING DEBT JUNE 30, 2001 I (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. -132- (1) Amount Percentage Available Applicable Bonds/Loans Debt Service Net Debt to City Outstanding Funds Outstanding of Paducah City of Paducah $ 9,671,330 $232,641 $ 9,438,689 100.0% Paducah Independent School District 9,040,000 - 9,040,000 100.0% McCracken County 6,700,000 - 6,700,000 48.3% McCracken County Board of Education 19,577,795 3,963 19,573,832 23.8% TOTALS $44,989,125 $236,604 $44,752,521 I (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. -132- -133- TABLE 16 CITY OF PADUCAH, KENTUCKY POLICE AND FIREFIGHTER'S RETIREMENT FUND REVENUE BY SOURCE LAST TEN FISCAL YEARS (1) Employee Employer Investment Fiscal Year Contributions Contributions Income Other Total 1991-1992 $45,069 $206,749 $ 923,314 $69,336 $1,244,468 1992-1993 37,910 173,909 908,887 10,376 1,131,082 1993-1994 36,797 356,200 852,563 396 1,245,956 1994-1995 34,737 323,844 784,629 2,702 1,145,912 1995-1996 33,253 340,773 884,085 4,052 1,262,163 1996-1997 33,888 744,484 858,541 1,203 1,638,116 1997-1998 36,110 660,651 989,175 8,967 1,694,903 1998-1999 31,371 593,776 716,366 2,998 1,344,511 1999-2000 27,640 649,274 1,224,591 2,000 1,903,505 2000-2001 28,482 865,026 1,033,814 - 1,927,322 (1) Includes interest and dividend income and net gain (loss) on sale of investments, but does not include net appreciation (depreciation) in fair value of investments. -133- -134- TABLE 17 CITY OF PADUCAH, KENTUCKY POLICE AND FIREFIGHTER'S RETIREMENT FUND EXPENSES BY TYPE LAST TEN FISCAL YEARS Benefit Investment Fiscal Year Refunds Payments Services Other Total 1991-1992 $ - $1,268,892 $ 6,554 $ 5,975 $1,281,421 1992-1993 19,117 1,342,978 7,224 25,164 1,394,483 1993-1994 - 1,394,169 6,504 28,331 1,429,004 1994-1995 - 1,492,528 6,302 5,842 1,504,672 1995-1996 - 1,535,885 7,119 12,433 1,555,437 1996-1997 - 1,585,549 7,008 2,102 1,594,659 1997-1998 - 1,613,710 15,777 7,649 1,637,136 1998-1999 28,684 1,695,198 11,756 10,831 1,746,469 1999-2000 - 1,719,043 10,993 9,868 1,739,904 2000-2001 - 1,742,179 8,008 10,437 1,760,624 -134- -135- o z r- A Cd C7 o a o o U o a ° w a 0 kn opo 0 0 o o o v o a 0 8 o c o c c a 3 Ln kr) kn kn O O O O O O c o 0 0 0 0 0 a O i, O O A O N O O U ~ O O O O., O O a N kn N N N N EA M -135- o z U Cd C7 o a o o U o a ° w a 0 0 0 o o o o 0 1* � I 3 Ln kr) kn kn y O i, U U -135- U Cd C7 o a o o U o a ° w a o -135- CITY OF PADUCAH, KENTUCKY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001 Federal Grantor/Pass-Through Grantor/ Program Title: Department of Housing and Urban Development: Section 8 Housing Choice Vouchers Passed through Kentucky Department of Local Government: Community Development Block Grants/State's Program Passed through Kentucky Housing Corporation: Federal Pass -Through CFDA Grantor Number Number Contract A -2877-E 14.871 Contract A -2877-V B -97 -DC -21-0001(029) M-00044473 B -97 -DC -21-0001(047) 14.228 99-101 HOME Investment Partnerships Program 14.239 Total Department of Housing and Urban Development Department of Justice: Local Law Enforcement Block Grants Program 16.592 Public Safety and Community Policing Grant 16.726 Total Department of Justice Department of Agriculture: Passed through Kentucky Department of Education: Summer Food Service Program for Children 10.559 Federal Emergency Management Agency: Passed through Kentucky Department of Military Affairs, Division of Disaster and Emergency Services: March 97 Severe Weather 83.105 U.S. Department of Transportation: Passed through Kentucky Transportation Cabinet: Transportation Enhancement Project - Streetscape 20.205 Historic Preservation Fund Grants -In -Aid Project - River Heritage Museum 15.904 Total Department of Transportation TOTAL EXPENDITURES OF FEDERAL AWARDS See accompanying notes to schedule of expenditures of federal awards. -136- M-96-SG-2101-05-00 M -97 -SG -2101-05-00 M -98 -SG -2101-05-00 M -99 -SG -2101-05-00 99 -LB -VX -3172 98-UM-WX-2055 N/A FEMA -1163 -DR -KY C-99039093 C-00055075 Expenditures $1,408,116 163,985 357,695 1,929,796 17,085 132,900 149,985 8,132 241,690 300,000 541,690 $2,652,538 CITY OF PADUCAH, KENTUCKY NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2001 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 — Subrecipients: The City of Paducah did not provide federal awards to subrecipients during the year. -137- i Wu.LiAms, WILuAms & LEN z, LLP CERTIFIED PUBLIC ACCOUNTANTS 601 JEFFERSON - P.O. BOX 2500 PADUCAH, KENTUCKY 42002-2500 1 J. RICHARD WALKER JERRY G. SEVERNS ROBERT R. ROBERTSON C. SUZETTE CRONCH ANNETTE T. RYAN Report on Compliance and on Internal Control MICHAEL F. KARNES MARK A. THOMAS Over Financial Reporting Based on an Audit ROGER G. HARRIS of Financial Statements Performed in Accordance with J. DAVID BAILEY, III Government Auditing Standards G. LEON WILLIAMS H. WILLIAM LENTZ Honorable William F. Paxton, Mayor Members of the Board of Commissioners City of Paducah Paducah, Kentucky TELEPHONE AREA CODE 270 443-3643 We have audited the general purpose financial statements of the City of Paducah, Kentucky, as of and for the year ended June 30, 2001, and have issued our report thereon dated September 12, 200.1. 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. The financial statements of Paducah Water Works, Forest Hills Village, Inc., Paducah Power System, and Paducah Junior College, Incorporated were not audited in accordance with Government Auditing Standards. Compliance As part of obtaining reasonable assurance about whether the City of Paducah, Kentucky's general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, 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 that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City of Paducah, Kentucky's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended for the information and use of the Board of Commissioners of the City of Paducah, Kentucky, management, others within the organization, 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. September 12, 2001 -138- WiwAMs, WiLLiAMs & LENTZ, LLP CERTIFIED PUBLIC ACCOUNTANTS 601 JEFFERSON - P.O. BOX 2500 PADUCAH, KENTUCKY 42002-2500 J. RICHARD WALKER JERRY G. SEVERNS ROBERT R. ROBERTSON C. SUZETTE CRONCH ANNETTE T. RYAN Report on Compliance with Requirements Applicable MICHAEL ES Major to Each Ma Program and Internal Control Over g MARK A. THOMAS ROGER G. HARRIS Compliance in Accordance with OMB Circular A-133 J. DAVID BAILEY, III G. LEON WILLIAMS H. WILLIAM LENTZ Honorable William F. Paxton, Mayor Members of the Board of Commissioners City of Paducah Paducah, Kentucky Compliance TELEPHONE AREA CODE 270 443.3643 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, 2001. 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 management of the City of Paducah, Kentucky. 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, 2001. 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 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 and to test and report on internal control over compliance in accordance with OMB Circular A- 133. -139- I Our consideration of the internal control over compliance would not necessarily disclose all matters in the - _ internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended for the information and use of the Board of Commissioners of the City of Paducah, Kentucky, management, others within the organization, and federal awarding agencies and pass-through r entities and is not intended to be and should not be used by anyone other than these specified parties. i September 12, 2001 -140- CITY OF PADUCAH, KENTUCKY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 A. Summary of Audit Results: 1. The auditor's report expresses an unqualified opinion on the general purpose financial statements of the City of Paducah, Kentucky. 2. No reportable conditions were disclosed during the audit of the general purpose financial statements of the City of Paducah, Kentucky. 3. No instances of noncompliance material to the general purpose financial statements of the City of Paducah, Kentucky were disclosed during the audit. 4. No reportable conditions were disclosed during the audit of the major federal award programs. 5. 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 # Housing Choice Vouchers 14.871 HOME Investment Partnerships Program 14.239 Historic Preservation Fund Grants -In -Aid Project - River Heritage Museum 15.904 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 - General Purpose Financial Statements Audit: None C. Findings and Questioned Costs - Maior Federal Award Programs: None -141-