CITY OF MEADVILLE

ANNUAL FINANCIAL REPORT

DECEMBER 31, 2023

 CITY OF MEADVILLE

ANNUAL FINANCIAL REPORT

DECEMBER 31, 2023

TABLE OF CONTENTS

PAGE

Independent Auditors’ Report 1–2

Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position – Modified Cash Basis 3
Statement of Activities – Modified Cash Basis 4

Fund Financial Statements:

Balance Sheet – Governmental Funds – Modified Cash Basis 5
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds – Modified Cash Basis 6
Statement of Net Position – Proprietary Funds – Modified Cash Basis 7
Statement of Revenues, Expenses and Changes in Fund Net Position –
Proprietary Funds – Modified Cash Basis 8

Notes to Basic Financial Statements 9 – 16

 INDEPENDENT AUDITORS’ REPORT

To the Board of Aldermen

of the City of Meadville

Opinions

We have audited the modified cash basis financial statements of the governmental activities, the business-type
activities, and each major fund of the City of Meadville (the City), as of and for the year ended December 31,
2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial
statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective
modified cash basis financial position of the governmental activities, the business-type activities, and each
major fund of the City as of December 31, 2023, and the respective changes in modified cash basis financial
position for the year then ended in accordance with the modified cash basis of accounting described in Note 1.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS). Our responsibilities under those standards are further described in the Auditors’
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions.

Emphasis of Matter – Basis of Accounting

We draw attention to Note 1 of the financial statements, which describes the basis of accounting. The
financial statements are prepared on the modified cash basis of accounting, which is a basis of accounting
other than accounting principles generally accepted in the United States of America. Our opinions are not
modified with respect to that matter.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in
accordance with the modified cash basis of accounting described in Note 1, and for determining that the
modified cash basis of accounting is an acceptable basis for the preparation of the financial statements in the
circumstances. Management is also responsible for the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement
when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on the
financial statements.

In performing an audit in accordance with GAAS, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.

 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.

 Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.

 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period
of time.

We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control–related matters
that we identified during the audit.

Columbia, Missouri
April 17, 2024

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 CITY OF MEADVILLE
STATEMENT OF NET POSITION - MODIFIED CASH BASIS
December 31, 2023

Primary Government
Governmental Business-type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 325,903 $ 727,585 $ 1,053,488
Restricted assets:
Cash and cash equivalents - 399,861 399,861
Total assets 325,903 1,127,446 1,453,349

LIABILITIES
Current liabilities:
Payroll withholdings payable 234 1,520 1,754
Customer deposits - 27,844 27,844
Other payables - 2,080 2,080
Total liabilities 234 31,444 31,678

NET POSITION
Restricted for:
Repairs and maintenance - 399,861 399,861
Highways and streets 106,087 - 106,087
Unrestricted 219,582 696,141 915,723
Total net position $ 325,669 $ 1,096,002 $ 1,421,671

See accompanying notes to the basic financial statements.

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 CITY OF MEADVILLE
STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS
For the Year Ended December 31, 2023

Net (Expense) Revenue and Changes in Net Position

Program Revenue Primary Government
Operating Capital Grants
Charges for Grants and and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Primary government:
Governmental activities:
General government $ 5,381 $ 25 $ - $ - $ (5,356) $ - $ (5,356)
Highways and streets 27,499 13,745 - - (13,754) - (13,754)
Total governmental activities 32,880 13,770 - - (19,110) - (19,110)
Business-type activities:
Electric 299,163 349,705 - - - 50,542 50,542
Water 84,405 117,477 - - - 33,072 33,072
Sewer 69,523 118,252 2,880 - - 51,609 51,609
Trash 26,152 29,734 - - - 3,582 3,582
Total business-type activities 479,243 615,168 2,880 - - 138,805 138,805
Total $ 512,123 $ 628,938 $ 2,880 $ - (19,110) 138,805 119,695

General revenues:
Taxes
Property taxes 17,595 - 17,595
Franchise taxes 10,526 - 10,526
Motor vehicle fuel and license taxes 21,187 - 21,187
Interest 36,010 7,305 43,315
Miscellaneous 6,075 17,664 23,739
Total general revenues 91,393 24,969 116,362
Change in net position 72,283 163,774 236,057

Net position - beginning, as restated 253,386 932,228 1,185,614

Net position - ending $ 325,669 $ 1,096,002 $ 1,421,671

See accompanying notes to the basic financial statements.

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 CITY OF MEADVILLE
BALANCE SHEET - MODIFIED CASH BASIS
GOVERNMENTAL FUNDS
December 31, 2023

Total
Governmental
General Street Funds
ASSETS
Cash and cash equivalents $ 219,584 $ 106,319 $ 325,903
Total assets $ 219,584 $ 106,319 $ 325,903

LIABILITIES AND FUND BALANCES

Liabilities:
Payroll withholdings payable $ 2 $ 232 $ 234
Total liabilities 2 232 234

Fund balances:
Restricted for:
Highways and streets - 106,087 106,087
Unassigned 219,582 - 219,582
Total fund balances 219,582 106,087 325,669
Total liabilities and fund balances $ 219,584 $ 106,319 $ 325,903

See accompanying notes to the basic financial statements.

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 CITY OF MEADVILLE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
MODIFIED CASH BASIS
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2023

Total
Governmental
General Street Funds
REVENUES
Taxes and franchise fees $ 28,126 $ 21,182 $ 49,308
Charges for services 25 - 25
County road payment and rock sales - 13,745 13,745
Interest 35,379 631 36,010
Miscellaneous 75 6,000 6,075
Total revenues 63,605 41,558 105,163

EXPENDITURES
General government 5,381 - 5,381
Highways and streets - 27,499 27,499
Total expenditures 5,381 27,499 32,880
Excess of revenues over expenditures 58,224 14,059 72,283

OTHER FINANCING SOURCES (USES)

Transfers in - 10,000 10,000
Transfers out (10,000) - (10,000)
Total other financing sources (uses) (10,000) 10,000 -
Net change in fund balances 48,224 24,059 72,283
Fund balances - beginning 171,358 82,028 253,386
Fund balances - ending $ 219,582 $ 106,087 $ 325,669

See accompanying notes to the basic financial statements.

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 CITY OF MEADVILLE
STATEMENT OF NET POSITION - MODIFIED CASH BASIS
PROPRIETARY FUNDS
December 31, 2023

Total
Proprietary
Electric Water Sewer Trash Funds
ASSETS
Current assets:
Cash and cash equivalents $ 426,797 $ 148,179 $ 120,188 $ 32,421 $ 727,585
Total current assets 426,797 148,179 120,188 32,421 727,585
Non-current assets:
Restricted cash and cash equivalents - 388,402 11,459 - 399,861
Total non-current assets - 388,402 11,459 - 399,861
Total assets 426,797 536,581 131,647 32,421 1,127,446

LIABILITIES
Current liabilities:
Payroll withholdings payable 465 666 389 - 1,520
Customer deposits 14,491 13,353 27,844
Other payables 1,581 499 - - 2,080
Total current liabilities 16,537 14,518 389 - 31,444
Total liabilities 16,537 14,518 389 - 31,444

NET POSITION
Restricted for repairs and maintenance - 388,402 11,459 - 399,861
Unrestricted 410,260 133,661 119,799 32,421 696,141
Total net position $ 410,260 $ 522,063 $ 131,258 $ 32,421 $ 1,096,002

See accompanying notes to the basic financial statements.

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 CITY OF MEADVILLE
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION -
MODIFIED CASH BASIS
PROPRIETARY FUNDS
For the Year Ended December 31, 2023

Total
Proprietary
Electric Water Sewer Trash Funds
REVENUES
Charges for services $ 349,705 $ 117,477 $ 118,252 $ 29,734 $ 615,168
Operating grants and contributions - - 2,880 - 2,880
Total operating revenues 349,705 117,477 121,132 29,734 618,048

OPERATING EXPENSES
Purchased services 246,476 5,276 307 24,862 276,921
General and administrative 8,346 12,951 8,146 1,290 30,733
Personnel services 19,251 25,925 16,404 - 61,580
Contractual services 17,240 18,520 17,429 - 53,189
Repairs and maintenance 6,466 1,974 2,342 - 10,782
Materials and supplies 862 711 592 - 2,165
Miscellaneous 522 672 673 - 1,867
Debt service:
Principal and interest - 18,376 23,630 - 42,006
Total operating expenses 299,163 84,405 69,523 26,152 479,243
Operating income 50,542 33,072 51,609 3,582 138,805

NON-OPERATING REVENUES
Interest income 5,878 796 631 - 7,305
Miscellaneous revenue 16,594 938 132 - 17,664
Total non-operating revenues 22,472 1,734 763 - 24,969
Net income 73,014 34,806 52,372 3,582 163,774
Total net position - beginning, as restated 337,246 487,257 78,886 28,839 932,228
Total net position - ending $ 410,260 $ 522,063 $ 131,258 $ 32,421 $ 1,096,002

See accompanying notes to the basic financial statements.

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 CITY OF MEADVILLE

NOTES TO FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies employed in the preparation of the
accompanying financial statements, as presented on the basis set forth in Governmental Accounting Standards
Board Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for
State and Local Governments as modified for the basis of accounting used by the government.

A. Reporting entity

The City of Meadville (the City) was incorporated in 1859 and covers an area of approximately a half square
mile in Linn County, Missouri. The City is governed by an elected mayor and an elected four-member Board
of Aldermen. The City provides services to its approximately four hundred residents in many areas including:
electric, water, sewer, trash, and various social services. These services do not include education, which is
provided by separate governmental entities.

The basic financial statements include all the funds relevant to the operations of the City. The financial
statements presented herein do not include entities which have been formed under applicable state laws or
separate and distinct units of government apart from the City that have been determined not to be component
units as defined by Governmental Accounting Standards Board Statement No. 61, The Financial Reporting
Entity: Omnibus – an amendment of GASB Statements No. 14 and 34.

B. Government-wide and fund accounting

The government-wide financial statements (i.e., the statement of net position and the statement of activities)
report information on all the non-fiduciary activities of the City. The effect of interfund activities has been
removed from these statements. Governmental activities, which normally are supported by taxes,
intergovernmental revenues, and other non-exchange transactions, are reported separately from business-type
activities, which rely to a significant extent on fees and charges to external parties.

The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported instead as
general revenues.

Separate fund financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual proprietary funds are reported as separate columns in the
fund financial statements. Each individual fund of the City is considered to be a major fund.

The City uses funds to report its financial position and results of its operations in the fund financial
statements. 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. Funds are classified into three categories: governmental,
proprietary, and fiduciary. The City had no fiduciary funds as of December 31, 2023.

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The City reports the following major governmental funds:

General Fund – The General Fund is the general operating fund of the City. It is used to account for all
financial resources except those required to be accounted for in another fund or designated by
management for expenditures for specified purposes.

Street Fund – This special revenue fund was established to account for taxes and other revenues legally
restricted for the ongoing maintenance and construction of streets.

The City reports the following major proprietary funds:

Electric Fund – The Electric Fund is used to account for the provision of electrical services to residents
and businesses of the City.

Water Fund – The Water Fund is used to account for the provision of water services to the residents and
businesses of the City.

Sewer Fund – The Sewer Fund is used to account for the disposal of wastewater and industrial waste for
the residents and businesses of the City.

Trash Fund – The Trash Fund is used to account for the provision of solid waste collection and disposal
services to the residents and businesses of the City.

C. Measurement focus, basis of accounting, and financial statement presentation

The government-wide and fund financial statements have been prepared using the modified cash basis of
accounting. Revenues are recorded when received rather than when susceptible to accrual, and expenditures
are recorded when paid rather than when the fund liability is incurred. Certain assets and liabilities are
recognized as a result of cash transactions. This basis is a comprehensive basis of accounting other than U.S.
generally accepted accounting principles (GAAP).

All proprietary funds are accounted for using the modified cash basis of accounting. These funds account for
operations that are primarily financed by user charges. Proprietary funds distinguish operating revenues and
expenses from non-operating items. Operating revenues and expenses generally result from providing
services and producing and delivering goods in connection with a proprietary fund’s ongoing operations.
Operating expenses include the costs of services and administrative expenses. All revenues and expenses not
meeting this definition are reported as non-operating revenues and expenses.

The City’s general spending prioritization policy is to consider restricted resources to have been used first,
followed by committed, assigned, and unassigned amounts when expenditures have been incurred for which
resources in more than one classification could be used.

Sometimes the City will fund outlays for a particular purpose from both restricted (i.e., restricted bond or
grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net
position and unrestricted net position in the government-wide and proprietary fund financial statements, a
flow assumption must be made about the order in which the resources are considered to be applied. It is the
City’s policy to consider restricted net position to have been depleted before unrestricted net position is
applied.

D. Budgets

Budgets are adopted for all governmental funds on a basis consistent with the modified cash basis of
accounting. All annual appropriations lapse at the end of the year.

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E. Cash and cash equivalents

The City maintains a cash pool that is used by all funds. Interest income is allocated monthly to the General
Fund. Cash may include cash on hand, demand deposits, and certificates of deposit with a maturity within
twelve months of the date acquired by the City.

F. Capital assets

As a result of using the modified cash basis of accounting, capital assets are recorded as expenditures at the
time the payment is made. As such, no balances for capital assets or accumulated depreciation are reported in
the government-wide or proprietary fund financial statements (GAAP does not record capital assets in the
governmental fund financial statements).

G. Long-term debt

As a result of using the modified cash basis of accounting, long-term debt is not recorded in the government-
wide or proprietary fund statements (GAAP does not record long-term debt in the governmental fund
financial statements). Debt proceeds are reported as other financing sources and payment of principal and
interest is reported as expenditures. The City’s long-term debt consists of revenue bonds.

H. Equity

In the governmental fund financial statements, equity is displayed in five components as follows:

Nonspendable – This consists of amounts that are not in a spendable form or are legally or contractually
required to be maintained intact.

Restricted – This consists of amounts that are constrained to specific purposes by their providers,
through constitutional or contractual provisions or by enabling legislation.

Committed – This consists of amounts that can be used only for the specific purposes determined by a
formal action of the government’s highest level of decision-making authority (the Board of Aldermen)
by the end of the year. The Board of Aldermen can, by adoption of an ordinance prior to the end of the
year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place
until a similar action is taken to remove or revise the limitation.

Assigned – This consists of amounts that are intended to be used by the government for specific
purposes but do not meet the criteria to be classified as restricted or committed. The Board of
Aldermen can assign fund balance; however, an additional formal action does not have to be taken for
the removal of the assignment.

Unassigned – This consists of amounts that are available for any purpose and can only be reported in
the General Fund.

The City did not have any nonspendable, committed, or assigned fund balances as of December 31, 2023.

In the government-wide and proprietary fund financial statements, equity is displayed in two components as
follows:

Restricted – This consists of net position that is legally restricted by outside parties or by law
through constitutional provisions or enabling legislation.

Unrestricted – This consists of net position that does not meet the definition of “restricted”.

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I. Compensated absences

Vacation and sick leave are considered as expenditures in the year paid. Unused vacation days are payable
upon termination.

J. Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect
reported amounts of assets and liabilities, and the reported amounts of revenues and expenses during the
period. Actual results could differ from those estimates. The most significant estimates used by management
are commitments and contingencies.

K. Subsequent events

Events that have occurred subsequent to December 31, 2023, have been evaluated through April 17, 2024,
which is the date the financial statements were available to be issued.

2. CASH AND CASH EQUIVALENTS

Missouri State Statutes authorize the City to deposit funds in any investments allowed by the State Treasurer.
These include obligations of the U.S. Treasury, federal agencies and instrumentalities, certificates of deposits,
and repurchase agreements.

Custodial credit risk for deposits is the risk that, in the event of bank failure, the government’s deposits may
not be returned to it. The City’s deposits with financial institutions must be collateralized in an amount at
least equal to uninsured deposits. The City’s deposits are categorized to give an indication of the level of
custodial risk assumed by the City.

Deposits, categorized by level of custodial risk, were as follows as of December 31, 2023:

Cash and
Cash Petty
Equivalents Cash Total
Bank balance
Insured by the FDIC $ 500,000 $ - $ 500,000
Collateralized with securities pledged by the
financial institution in the government's name 952,458 - 952,458
$ 1,452,458 $ - $ 1,452,458

Carrying value $ 1,453,349 $ - $ 1,453,349

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A reconciliation of cash and cash equivalents as shown in the government-wide statement of net position is as
follows:

Cash and cash equivalents $ 1,053,488

Restricted assets:
Cash and cash equivalents 399,861
Total $ 1,453,349

3. RESTRICTED CASH AND FUND BALANCE/NET POSITION

As of December 31, 2023, cash and fund balance/net position were restricted for various uses as follows:

Fund Balance/
Cash Net Position
Street Fund
Restricted for highways and streets $ - $ 106,087
Water Fund
Restricted for repairs and maintenance 388,402 388,402
Sewer Fund
Restricted for repairs and maintenance 11,459 11,459
$ 399,861 $ 505,948

4. PROPERTY TAXES

Assessed values are established by the Linn County Assessor subject to review by the County’s Board of
Equalization and the State Tax Commission. The City’s property tax is levied on November 1 on the assessed
value as of the prior January 1 for all property located in the City. Property taxes are billed in total by
December 1 following the levy date and considered delinquent after January 1. A lien is placed on the
property as of March 1 if delinquent taxes are not paid.

The City is subject to a calculated levy ceiling for general governmental purposes as the taxing limitation.
The ceiling for 2023 was $0.3806 per $100 assessed valuation. The City’s assessed valuations and tax levies
per $100 assessed valuation of those properties are as follows:

Assessed valuation:
Real estate $ 2,399,726
Personal property 1,697,698
$ 4,097,424

Tax rate per $100 assessed valuation:

General Fund $ 0.3806

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5. LONG-TERM DEBT

The following is a summary of the City’s long-term debt transactions for the year ended December 31, 2023:

Beginning Ending Amount Due

Balance Additions Retirements Balance in One Year
Proprietary funds:
Revenue bonds 2010 $ 146,600 $ - $ 14,800 $ 131,800 $ 15,300
Revenue bonds 2020 366,941 - 8,841 358,100 18,100
$ 513,541 $ - $ 23,641 $ 489,900 $ 33,400

The State Constitution permits a city, by vote of two-thirds of the voting electorate, to incur general
obligation indebtedness for "city purposes" not to exceed 10% of the assessed value of taxable tangible
property and to incur additional general obligation indebtedness not to exceed, in the aggregate, an additional
10% of the assessed value of taxable tangible property, for the purpose of acquiring rights-of-way,
construction, extending and improving streets and avenues and/or sanitary or storm wastewater systems, and
purchasing or constructing waterworks, electric or other light plants, provided that the total general obligation
indebtedness of the City does not exceed 20% of the assessed valuation of taxable property.

Based on the assessed valuation as of January 1, 2023, of $4,097,424, the constitutional total general
obligation debt limit was $819,485, which provides a general obligation debt margin of $819,485.

Revenue Bonds

In 2010, the City issued Combined Waterworks and Sewerage System Revenue Bonds (State of Missouri –
Direct Loan Program) Series 2010 not to exceed $622,700 for the purpose of maintaining the water system of
the City. As of December 31, 2023, $308,708 had been drawn.

The City has pledged future utility customer revenues, net of current specified operating expenses, to repay
the bonds when fully drawn. Proceeds from the bonds provided financing for the construction and
maintenance of water facilities. The bonds are payable solely from utility customer net revenues and are
payable through 2031. Net revenues available for debt service are not to be less than 110% of the amount
required to be paid annually of principal and interest. Net revenues for 2023 are over 184% of the annual
principal and interest payments made in 2023. The total principal and interest remaining to be paid on the
bonds is $139,740. Principal and interest paid for the current year and total customer net revenues were
$18,376 and $33,868, respectively.

In 2020, the City issued Combined Waterworks and Sewerage System Revenue Bonds (State of Missouri –
Direct Loan Program) Series 2020 not to exceed $494,000 for the purpose of funding grant matching
requirements related to wastewater system improvements. As of December 31, 2023, $377,941 had been
drawn. The total principal and interest remaining to be paid on the bonds is $385,305. Principal and interest
paid for the current year was $23,630.

In connection with the issuance of these bonds, the City participates in a revolving loan program established
by the Missouri Department of Natural Resources (DNR). The State of Missouri manages and invests the
bond proceeds on behalf of the City. As the City incurs approved expenditures, DNR reimburses the City for
the expenditures. The costs of operation and maintenance of the water and wastewater systems and the debt
service are payable from operating revenues. The revenue bonds do not constitute a general obligation of the
City.

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Revenue bonds are comprised of the following issues:

Final Balance
Original Issued Interest Maturity December 31,
Amount Amount Rate Date 2023
Combined Waterworks and Sewerage System
(Series 2010) $ 622,700 $ 308,708 1.38% 7/1/2031 $ 131,800
Combined Waterworks and Sewerage System
(Series 2020) 494,000 377,941 0.81% 1/1/2041 358,100
$ 489,900

Annual debt service requirements on the City’s long-term debt are as follows:

Year Ending December 31 Principal Interest Total

2024 $ 33,400 $ 4,631 $ 38,031
2025 34,100 4,270 38,370
2026 34,400 3,903 38,303
2027 35,100 3,534 38,634
2028 35,700 3,155 38,855
2029-2033 152,200 10,212 162,412
2034-2038 108,000 4,743 112,743
2039-2041 57,000 697 57,697
Total $ 489,900 $ 35,145 $ 525,045

6. INTERFUND TRANSACTIONS

During the year ended December 31, 2023, a $10,000 transfer from the General Fund to the Street Fund was
approved by the Board of Aldermen.

7. COMMITMENTS AND CONTINGENCIES

A. Risk Management

The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; workman’s compensation; liability, crime, and employee errors and omissions; and
natural disasters. The City purchases commercial insurance to provide coverage for general liability, property
damage, and workers’ compensation. Settled claims have not exceeded this commercial insurance coverage
in any of the past three years.

B. Solid Waste Contract

In November 2021, the City entered into a contract with Green For Life for solid waste removal services. The
contract is for an initial five-year term through 2026, with an optional one-year extension. Charges under the
contract state a rate of $11.75 per unit per month (and $22.50 per month for weekly collection from eligible
units) for the initial five-year term.

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C. Liberty Utilities Contract

In January 2018, the City entered into franchise agreement with Liberty Utilities (Midstates Natural Gas)
Corp. d/b/a Liberty Utilities (LU). The agreement grants LU the right to furnish, sell, and distribute gas to the
City; to acquire and maintain all facilities necessary to provide gas services within the City; and the right to
make reasonable use of streets and other public places. During the franchise term of twenty-years, LU will
pay the City a sum equal to five percent (5%) of the amounts of money received from its customers within the
City’s geographical limits or boundaries for the retail sale of gas under rates, temporary or permanent,
authorized by the Missouri Public Service Commission.

8. RESTATEMENT

Prior to 2023, security deposits were recorded as revenues at the time payment was received, and
expenditures at the time the deposit was returned to the customer. As such, no liability was reported in the
government-wide or proprietary fund financial statements.

In 2023, the City decided to report the liability in the government-wide and proprietary fund financial
statements.

Accordingly, net position – beginning, was restated as follows:

As previously
reported Restatement As restated
Business-type activities $ 960,277 $ (28,049) $ 932,228
Electric Fund 351,837 (14,591) 337,246
Water 500,715 (13,458) 487,257

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