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Transcription

1 /, / ~ co9" os o~,~, a~~?~- ~ C IT Y O F A B B E V IL L E,L O U ISIA N A FinancialR eport Y ear E nded D ecem ber 31,1998 U nder provisions of state law,this report is a public docum ent. A copy ofthe reporthas been subm itted to the audited, or reviewed, entity and otherappropriate public officials. lhe req~ortis ~vailable for public inspection at the Baton Rou~{e office ofthe Legisiaiive Audi- ~ic~~d'~f~t~a' f pa~;!~"(~[~t,.,~fcourt. atthe.el,~.se D.te ~ ://: Z ~" _

2 TA BLE O F CO N TEN TS Page lndepcndenta uditor'sr cport 1-2 PRIM A RY G O V ERN M EN T FIN A N CIA l,sta TEM EN TS Com bined Balance Sheet- A llfund Typesand A ccountgroups Com bined Statem entof Revenues,Expendituresand Changes IlFund B alances- A llg overm nentalfund Types Com bined Statem entof Revenues,Expendituresand C hanges In Fund Balances- Budget(GAAP Basis)and Actual- A llg overn m entalfund Types Com bined Statem entof Revenues,Expensesand Changesin Relaincd Earn ings- A llproprietary fund Types Com bined Statem entof Cash Flow s- A llproprietary Fund Types N otesto FinancialStatem ents SCIIEI)U I.ES O F /N D IV ID UA L FUN D S AN D A CCOU N T G I/O U PS G eneralfund: Com parative Balance Sheet Statem entof Revenues,Expendituresand Changesin Fund Balance- Budget(GAAP Basis)and Actual StatementofRevcm mscom pared to Budget(GAAP Basis) Statem entofexpenditurescom pared to Budget(GAAP Basis) SpecialRevenue l:unds: Com bining B alance Sheet Com bining Statem entofrevenues,expendituresand Changes In Fund Balance Sales Tax Fund Statem entofrevenues,expendituresand Changesin Fund Balance- Budget(GAAP Basis)andActual StatementofExpendituresCompared to Budget(GAAP Basis) l'ublicimprovement(sewer)l:und - Statem entof Revenues,Expendituresand Changesin Fund Balance- Budget(GAAP Basis)and Actual M aintenance and O peration - Fire D epartm entfund -- Statem entof Revenues,Expendituresand Changesin Fund Balance- Budget(GAAP Basis)andActual D ebtservice Fund: 1997 Certificatesof IndebtednessD ebtservice Fund Com parative B alance Sheet 1997 Certificatesof IndebtednessD ebtservice Fund Statem entof Revenues,Expendituresand Changesin Fund Balance- Budget(GAAP Basis)and Actual

3 Page CapitalProjectFunds: Com bining B alance Sheet Com bining Statem entof Revenues In Fund Balance 997 LCD B O Street and A ctual Expendituresand C hanges ImprovementFund - Budget(GAAP Basis) 1997 Certificate/Construction Fund - Statem entof Revenues, Expendituresand ChangesinFundBalance- Budget(GAAP Basis)and Actual A irportim provem entprogram - Statem entof Revenues, Expendituresand Changesin FundBalance- Budget(GAAP Basis)and Actual 1995 LCD BG SewerExtension Fund - Statem entof Revenues, Expendituresand Changesin Fund Balance - Budget(GAAP Basis)and Actual linterp rise Fund: U tility System Fund - Com parative B alance Sheet Com parative Statcm cntof Revenues, Expensesand Changesin Retained Earnings Com parative Statem entof C ash Flow s C om parative Statem entof O therrevenues Com parative Statem entof O perating Expenses Schedule of Changesin A ssetsrestricted forrevenue Bond D ebtservicc InternalService Funds: Com bining Balance Sheet Com bining Statem entof R. evenues,expcnscsand Changesin R etained Earnings Com bining Statem entof Cash Flow s A gency Ftm d: PayrollFund - Com parative B alance Shcct Statem entof Changesin A ssetsand Liabilities G eneralfixed A ssetsa ccountg roup: Com parative Statem entof G eneralfixed A ssets Statem entof Changesin G eneralfixed A ssets G enerallong-term D cbta ccountgroup: Com parative Statem entof G enerallong-term D ebt NTEI~.N A I.CO N TRO l., CO M PLIAN CE AN D OTH ER G RAN T IN FO RM ATIO N IndependentA uditor'sreporton Com pliance and on Internal ControlO verfinancialr eporting Based on an A udit of FinancialStatem ents Perform ed in A ccordance W ith G overnm enta uditin~ Standards

4 Page ndependcnta uditor'sreporton Com pliance with RequirementsApplicableto Each M ajorprogram and Intern alcontrolovercom pliance in A ccordance w ith O M B CircularA -133 Schedule of Expendituresof FederalA w ards ScheduleofFindingsand Questioned Costs Schedule of PriorY earfindings Corrective A ction Plan O'I'III-R SU PPI.I'~M ENTA I~Y IN FO RM ATIO N Schedule of N um berof U tility Custom ers Com parative D epartm entala nalysisof Revenuesand Expenses- U tility System Fund Com bined Schedule ofinterestbearing D eposits- A llfunds Com bined Schedule of]nvcstm ents- AllFunds Schedule of Insurance in Force Schedule ofcom pensation Paid 1o M em bersof G overn ing Board

5 I)arnall,Sikes Frederick IN D EPEN D EN T A U D ITO R 'S RI~F'O RT ugt'ncll I)sllnall.( pa Rctil~.d I Iall~ Niku.s,( PA. IJ.,,,,> I' I,.'m.i~k, ( hi}loll ] I)II~llll, ] uy,'nc II I)all,:,ll, III, I'aula I) Ilihln, s.p. M rr,,,;,,,,, lu-i,l,iit.l s z i~-~,ik'l, ( J,,~,.a M ~m 'l. I~dlH ]' A H nat,,. K alhll.-i, I I)all~nll, ( I'A ql.-i,h~n R I)is~l,h,. M B A, ( PA A lan "xl 1:lbh,i, ( I'A ( hlistillu-a I([Is Ibklls, ( I'A Ilitl,(i[t.cx,~l.IjI(I'A Iliuh (i Io~x,ul,I11, ( I'A D ~,I,nS I' I',,nlitl. ( PA la, tll~ ( I'A (';,,J~, J~ ~,.,~,,,,,~ ( J,A R ace,an l) Nit.lib,( I'A I~,sOl~ 11 \Vulsm l. ( PA (,th,. I,,~.~,m,,,~: I.'5 R uc I1~ ~, I:ll:l~ttll.IA 7o50n Thellonorable R.Brady Broussard,M ayor And M em bersof the City Council C ity ofabbevillc,louisiana "]) ~l } I in,~,la XLnUL ~lx 45 ] 4 1.1~, J)D I II,,l~~,t,,,~,t.l,iJt SLIJlt ~l)l M,. t:an ( i~ [ A "]O ~NO A bbcxillt. t A?(Iq lo ~ln gl}~ W e have audited the accom panying prim ary governm ent financial statem ents of the City of A bbeville,louisiana,as of and forthe year ended D ecem ber31,1998,as listed in the table of contents. These financialstatem entsare the responsibility of the City of Abbeville,Louisiana's m anagem ent. O urresponsibility isto expressan opinion on these financialstatem entsbased on ouraudit. W e conducted ourauditin accordance w ith generally accepted auditing standards,the standards applicable to financial audits contained in G overnm ent A uditing Standards issued by the Com ptroller G eneral of the U nited States,and the provisions of O ffice of M anagem ent and BudgetCircular A-133 "A udits of States,Local G overnm ents and N on-profit O rganizations". Those standards and O M B CircularA -133 require thatw e plan and perform the auditto obtain reasonable assurance aboutw hether the financialstatem ents are free of m aterialm isstatem ent, A n auditincludesexam ining,on a testbasis,evidence supporting the am ountsand disclosuresin the financialstatem ents. A n auditalso includes assessing the accounting principles used and significantestim atesm ade by m anagem ent,asw ellasevaluating the overallfinancialstatem ent presentation.w e believe thatourauditprovidesa reasonable basisforouropinion. Govern m entala ccounting Standards Board TechnicalB ulletin 98-1, "D isclosures about Year 2000 Issues",requires disclosure of certain m atters regarding the year 2000 issue in order for financialstatem entsto be prepared in conform ity w ith generally accepted accounting principles. Such required disclosuresinclude: ~ any significant am ount of resources com m itted to m ake com puter system s and other clectronic equipm entyear2000-com pliant; ~ a generaldescription of the year2000 issue,including a description of the stagcsof w ork in process orcom pleted as of the end of the reporting period to m ake com puter system s and other electronic equipm ent critical to conducting operations year 2000-com pfiani; and ~ the additional stagcs of w ork necessary for m aking the com puter system s and other electronic equipm entyear2000-com pliant. ~'""

6 The C ity ofa bbcville,louisiana hasom itted such disclosures. W e do notprovide assurance thatthe City of A bbeville is orw illbe year 2000 ready,thatthe City of Abbeville's year2000 rcm ediation efforts w illbe successfulin w hole orin part,orthatpartiesw ith which the City of A bbcville doesbusinessw illbe year2000 ready. A Prim ary governm entis a legalentity orbody politic and includes allfunds,organizations,institutions, agencies,departm ents,and officesthatare notlegally separate. Such legally separate entitiesare referred to as com ponentunits. In our opinion,exceptforthe om ission of the inform ation discussed in the preceding paragraph,the prim ary governm entfinancialstatem entspresentfairly,in allm aterialrespects,the financial position of the prim ary govern m entof the City of Abbeville,Louisiana,as of D ecem ber31,1998,and the resultsof itsoperationsand cash flow sof itsproprietary fund typesforthe yearthen ended in conform ity w ith generally accepted accounting principles. llow ever,the prim ary govern m entfinancialstatem ents,because they do not include the financialdata of conaponentunitsof the City of Abbeville,Louisiana,do notpurportto,and do not,presentfairly the financial position of the City of A bbeville,louisiana,asofd ecem ber31,1998,and the resultsofitsoperations and cash flow s of its proprietary fund types for the year then ended in conform ity w ith generally accepted accounting principles. In accordance w ith G overnm enta uditing Standards,w e have also issued a reportdated M ay 14,1999,on our consideration of the C ity of A bbeville,louisiana'sintern alcontroloverfinancialreporting and ourtestsofits com pliance w ith certain provisionsof law s,regulations,contractsand grants. O ur audit w as perform ed for the purpose of form ing an opinion on the prim ary govern m ent financial statem entstaken asa w hole. The com bining and individualfire d and accountgroup financialstatem entsand schedules listed in the table of contents are presented for purposes of additional analysis and are not a reqtfired part of the prim ary governm ent financial statem ent of the City of A bbeville,louisiana. Such inform ation hasbeen subjected to the auditing proceduresapplied in the auditofthe primary government financialstatem entsand,in ouropinion,isfairly presented in allm aterialrespects in relation to the prim ary governm entfinancialstatem entstaken asa w hole,exceptthat: 1. W e have notaudited the insurance coverage data and we expressno opinion on it,and 2. Inform ation as to the num berof m etered utility custom ers isbased on unaudited data obtained frontthe C ity'srecords,on w hich w e expressno opinion. The financialinform ation forthe preceding yearw hich isincluded forcom parative purposeswastaken fi'om the financialreportfor thatyear in w hich w e expressed an unqualified opinion on the prim ary governm ent financialstatem entsof the C ity of A bbeville,louisiana..cjdc:z:::l/, e$'t#eo &;.c/j~ejaic~ A Corp oration of Certified Public A ccountants A bbcville,l.ouisiana M ay 14,1999

7 PRIM A R Y G O V ERN M ENT FIN AN C IA L S'I'AT EM EN TS

8 CITY O F A BBEVILLE,LO UISIAN A Com bined Balance Sheet- A llfund Typesand A ccountgroups D ecem ber31,1998 (W ith ComparativeTotalsforDecember31,1997) A SSETS A N D O TIIER I)EBITS G eneral G overnm entalfund Types bpecm l p eat R evenue Service uapflal Projects Cash Interest-bearing deposits Investm ents Reccivables: A ccounts A d valorem taxes Sales tax O ilier I)ue from olherfunds D ue fronlothergovernm entalunits hlvcntories Prepaid insurance Restricted assets: Cash Interest-bearing deposits Investm elts l,and Buildings ln~provem entsotherthan buildings Equipm ent U tility property,plantand equipm ent A ccunm lated depreciation A m ountavailable in debtservice funds A m ountto be provided forretirem ent of generallong-term debt Unam ortizcd bond issuance costs(net ofaccunm lated am ortization) $ 34,190 79, ,500 6,689 63,017 39,298 2,177 $ 398, ,000 15, ,652 6,294 40,000 $ 110,472 $ 1,546 21, Totalassetsand otherdebits ~,327,767 _$1,355,790 ~ ~ 32 The accom panying notesconstitute an integralpartof thisstatem ent

9 Proprietary Fund Types Inlcrllal Service Fiduciary Fund Types A gency A ccountg roups G eneral Fixed A ssets G eneral Long-Term D ebt Totals (M em orandum Only) 22, $ 335, ,000 $ $ $ $ 56,769 $ 87,603 1,511, , , , ,000 1,421,897 78, ,652 10, , , ,307 1,278,689 47, , ,560 1,009,382 75, , , ,000 26,691,461 (15,581,763) 519,601 2,319,321 10,722, II0,472 61, , ,601 2,319,321 10,722,831 2,570,020 26,691,461 (15,581,763) I ,110 1,453, ,101 2,319,321 10,039,663 2,289,665 26,509,282 (14,801,806) ,561, ,339 ~L4~003,773 ~ 733,096 ~ 52,684 ~ 6,131,773 ~ 1 72,387

10 CITY OF A BBEV ILLE,LO U ISIA N A Com bined Balance Sheet- A llfund Typesand A ccountg roups- Continued D ecember31,1998 (W ith ComparativeTotalsforDecember31,1997) G eneral LIABILITIES,EQUITY AND OTIIER CREDITS G overnm entalfund Types bpec~al D ebt R evenue Service t~apnm Projects Liabilities: A cconntspayable State salestax payable P,etainagespayable A eeroed salaties payable O theraccrued liabilities D oe to otherflnrds D ue to othergovernm entalunits Payable fi'om restricted assets: Refunding bondspayable -net A ccrued interestpayable Custom ers'deposits Com pensated absencespayable Refunding bondspayable -net Cerlificalesof indebtednesspayable Totalliabilities $ 72,845 22,258 23,784 91,086 6,814 $ 41,163 2, ,573_ $ 51,735 32,081 Equity and O therc redits: C ontributcd capital Investm entin generalfixed assets Retained earnings(deficit): Reserved forrevenue bond retirem en D esignated forclaim s U nreserved Fund balances: Reserved forcapitaloutlay P,eserved forinventory Reserved fordebtservice U nreserved - U ndesignated Totalequity and othercredits ,980 1,311,217. 1,311, , ,472 l'otalliabilities,equity and othercrcdites $ 397,767 The accom panying notesconstitute an integralpartofthisstatem ent

11 Proprietary Fund Types 1iiterna [ Service Fiduciary l:und Types A gency A ccountg roups G eneral Long-Term D ebt Totals (Memorandum Only) $ 426,657 $556,627 $ 18,288 19,778 1,010 5, ,684 73,000 7, ,753 16,737 1,785 53,675 79,776 1,009, ,186 11, , ,289 52,684 77, ,000 1,672, ,186 11, ,526 77,387 2,484, ,974 26, , ,338 3,879,866 1,730,000 8,919,708 9,653, ,653, ,558, , , , , ,821 (458,564) 2, ,405 1, ,029, ,807 16,131,773 _ ~ 13~!,936 27,824,119 1,518,991 27,873,581 $14,003,773 $733,096 $ 52,684 ~16,131,773_ $1,672,387. $34,533,474..$3fi,793,289 (concluded)

12 CITY OF ABBEVILLE,LOU ISIAN A Com bined Statem entofp,evenues,expendituresand Changesin Fund Balances A llgovernm entalfund Types Y earended D ecem ber31,1998 (W ith Com parativetotalsfortheyearended December31,1997) ]~.evelnles: Taxes l.icelt~esand pem 'tits lntergovenunental Ctmrgcs forservices Fines Otherrevenues Totalrevenues F.xpe ndi'alres: Current- Generalgovenlnarr~ F'ublic safety - Police Fire Ilighwaysand streets CSaltureand recreation Capitaloutlay I>ebtService - 1'lincipalretirecoent InteTes't Paying agentfees Totalexpenditu res General Ftmd $ 215,/M 1 389, , ,321 64,584?0AA~ 1,277~,129,787,356,070,349, , ,095 Special Revenue Funds $1,768,728 $ 235, " zo , , , ,250 82,562 4,746S~58A- _ _ Debt Service Fund 2 A22 135,000 84,455. IQQ 219,5~. ~s Capital Projects Fund $ $1,984, ,571 1,108,290 1,711,126 36,321 64,5&1 _ ,(.~,~ _ k! ~ 2,608,268.2X.c03~ Totals 0vlcn'.orartdurl'~Or@) $ 1,774, , ,480 27,595 66, ,175.~ ,106 1,126,432 1,507~21 1,482,426 1,111, ,657 2,608,268 1,453,813 1,395, , , ,000 84,455,13,~12 1(~ ~ LL2 _ ~ 5, ~ 9~.K0( ILxcess(deficiency)of revenuesoverextmnditurcs (3,469,079) 1,192,437 (217,128) (1,476,840) (3,970,610) (I,996,754) Olhcrfinm]cing sources(ttses): Otx-ra6ng Irmasfe~sin Ow rating tlajtsfersout p[~xeedsfrom cerlificatcs ofindebtedness Totalotherfitmncing sources(uses) 3,360, , ,936 (150,535) (1,032,499) 167~20 3,897,590 (5,669) (1,188,703) _ 3,40.1,9.19 (1,235,474) A Y.30,~.q?0 _ ( ).JL19~ ~ )_6 ~ ~.~ 3~ g99.4_75 :und balances,bcgiun ing (259,515) ,473 1,180,442 2,808 (1,315,489) (1,261,723) 07,66-I 1,307,405 2,936, , ~. eaidualequity trar',s fei>;to U tility System Fund :undbalances(deficit),ertding.~ L1_7%6% ) (17o,6~, _81 (:12~,.301 e accoinl)anyiug notesconstitute an integralparlofthisstatem ent

13 CITY OF ABBEVILLE,LOU ISIAN A Combined Statem entofrevenues,expendituresand Changesin Fund Balances Budget(GAAP Basis)and Actual- A llgovern m entalfund Types Y earended D ecember Revenues: Taxes 15censesand perm its hltergovernm euta] C hargesforservices Fines O ilierrevenues Totalrevenues B udget $ 210, , ,500 37,000 60, GeneralFund A ctual $ 215, , ,200 36,321 64, _..L22LL~ V ariance Favorable (Unfavorable) $ 5,641 1,571 35,700 (679) 4, ! Expenditures: Current- G eneralgovermnent Public safety - Police Fire Ilighw aysand streets Cnhure and recreation l)ebtservice - Principalretirem ent Interestanclfiscalcharges Legalfees Totalexpenditures Excess(deficiency)of revenuesoverexper,ditm es Otherfinancing sources(uses): Operating transfersin O perating transfersont Totalotherfinancing sourcing (uses) ~xcess(deficiency)of revenuesand other lnaneing sourcesover expenditu resand otller financing Uses Fund balances,beginning,298,000,368, , ,129,787,356,070,349, , ,213 (58,070) 18,374 (59,006) (80.58~ (3,442,000) (3,469,079) 3,324,000 ( ) ~ 3,360,099 ( ) , _ 4,1,779 (259,515) 17,700 Residualequity transfersto U tility System Fund "heacconlpanying notesconstitute an integralpartofthisstatem ent.

14 Budget SpecialP.evenue V ariance Favorable (Unfavorable) Budget D ebtservice Fund A ctua v ariance Favorable (Unfavorable) $1, $1, $ (3,272) $ $ _ ~ _ ,000 2,0R 2, _ AZ ,0O , , , , , , ,149,200,750, ,000 85,000 _ _ ,000 84, ~ 545 (L~ , (218,000) (217, ,000 ~L ,535 _( / 9,535 _ 17, , ,936 (64) _ / ) _ ( / _ Qg~ ( _ ~ ) 98, , ,853 2,000 2, ( _ (34.698) LL23A.062 ~1,311,212. i 77j5~ ~ 9~ ~x~to 4~ 2 ROQR (continued) 0

15 CITY OF ABBEVILLE,LOUISIANA Com bined Statem entofrevenues,expendituresand Changesin Fund Balance Budget(GAAP Basis)and Actual- Continued A llg overnm entalfund Types YearEnded Decem ber31,1998 Revenues Taxes Licensesand pernlits lntcrgovernnrental C hargesforservices Fines O therrcvenlles Totalrevenues I'xpenditures: Current- G eneralgovernm ent Public safety - Police Fire llighwaysand streets Culture and recreation Capitaloutlay D ebtservice - Principalretirem ent Interestand fiscalcharges Totalexpenditures l'xcess(deficiency)of revenuesoverexpenditures Otherfinancing sources(uses): Operating transfersin O perating transfersout I'ioceedsfrom certificatesof indebtedncss Totalotherfinancing sourcing (uses) Fxcess(deficiency)of revenuesand other financing sourcesover expendituresand other financing uses Fund balances,beginning Residualeqtlily transfersto U tility System Fund Fund balances(deficit),ending The acconlpanying notesconstitute an integralpartof thisstatem en $ Budget 1,090,000 1,1 13.,9~ ~ CapitalProjectsFund Actua $ 5; V ariance Favorable (Unfavorable) 1,108,290 18, ~ ~ _ I.~ _ ,589,000 2,608,268 (19,268) _ 2~ ,2~ (19.26~ (1,476,000) (1,476,840) (840) ,020 (5,669) (1,575) (5,669) 1(i~ 5_~ _ Ll. _ (7.244/ (1,307,405) (1, (8,084),307,405 (concluded)

16 CITY OF ABBEVILLE,LOUISIAN A Com bined Statem entof Revenues,Expensesand Changes AllProprietary Fund Types YearEnded Decem ber31,1998 Operating revenues: Chargesforservices- Electric salesand related charges W atersales Sew erservices Prem ium s O therrevenues Totaloperating revenues (W ith ComparativeTotalsfortheYearEnded December31,1997) EnWqM se Fund $10,324, , _ 179.0R~9_9._ tl ~ Intern al Service Funds $ $ 10,324, , ,039 1,587,199 1,587,199.L53,189 3~ Totals (M emorandum Ouly) $9,773, , ,724 1,423, da% _122 ~ ZSLt ~ O perating expenses: F.lectricpowerpurchased Electric departm entexpeases W aterdepartm entexpenses Sew erdepartm entexpenses G eneraland adm inistrative expenses Costofservicesrendered Depreciation expense Totaloperating expenses 5,511, , , , , ~ 719, I9.31_~ 5,511, , , , ,34~ 1,719,319 _7_~9,034 19,54a _4.3~ 5,292, , , ,417 3~3,~34 1,606, IK ~ 3-.59A ~ O perating incom e _ 3.090d25_ ~ ~ Nonoperating revenues(expenses): lnteresti.neorne lnlerestexpense Paying agents'fees A m ortization of bond issuancecosts Totalnonopcrating revenues(expenses) 77A33 (301,931) (715) (10,~ -23 (235.2~ ~ 10,917 ~...10,917 88,350 (301,9311 (715) _ tl0.0k2) _ d.~ 4, ,047 (394,578) (858).~ ~ ) Incomebeforeoperating transfers _ ~ ~. 2~ _2~ ';0,872 Operating transfersin(out): Operating transfersin O perating transfersout Totaloperating transfersin (out) 791,518 (2.708,~ 791,518 1,191,970 ~ ILL69,475"~ N etincol/lc A dd:d cpreciation on assetsacquired by capitalgrantsexternally restricted for capitalacquisitionsand conslpae6on thatreducescontributed capital , , , LlK ZP2. i ~.18,797 Retained earnings(deficit),begirm ing ~. etained earnings,ending 264,780 31, , ~ 9S 5_ ~ 247,4 1K6 ~ d33.048) T he accom panying notesconstitute a lintegralpartofthisstatem ent.

17 CITY OF A BBEVILLE,LO UISIA NA Com bined Statem entof Cash Flows- A llproprietary Fund Types YearEnded Decem ber31,1998 (W ith ComparativeTotalsfortheYearEnded December31,19971 Enterprise Fund hrternal Service I;lm ds Totals (M cmorandnm Only) 9 Cash flowsfrom operating activities Operating incom e $ 3.090,125 $ 21,0_f~ $3.111,194 $ 2.65(Z&Q2 Adjtlstments1o reconcileoperating incom e to netcash provided by operating activities- Depreciation Changesin currentassetsand liabilities: (Increase)decreasein accountsreceivable (Increase)decreaseinduefrom otherfunds {Increase)decreasein inventory (Increase)decreaseth otherreceivables (Increase)decreaseinprepaid insurance Increase(decrease)inaccountspayable Increase(decrease)in slatesalestax payable Increase(decrease)in accrued salariespayable Increase(decrease)in otheraccrued liabilities Increase(decrease)in dueto otherfimds Totaladjustments _ (109, ,000 2,338 (28,843) 4,310 (49,2611 1,551 5,911 (8,653) 529_7,000) 6~9A92 95,307 48, , ~ 151,130~._ (14, ,000 2,338 (28,843) 4, ,648 1, (8,508) _ X&SL ~ s lt93 _ ,604 27,271 (6,147) 210 (187,5211 (5,446) 1,726 (828) 589,~ N etcash providcd by operating activities 3,779,fz12 193~6_t5. J ,1~_(2 Cash flowsfrom noncapitalfinancing activities: Operating transfersin flora oth erfunds O peratth g transfersoutto oth erfunds V91,518 O.500.t92l 791,518 f3.500,405) 1,191,970 N etcash used by noncapita financing activities Cash flow sfrom capitaland related financing activities A cquisition of plantand equipm crjt Principalpaid on revenue bond m aturities lntercstpaid on revenuebonds l'rincipalpaid on certificatesof indcbtedness Interestpaid on certificatesof indebtedness Increase in cngtonlerm eterdeposits Capitalcontributed fron'tnm nicipality and oth er govcrnnlenlentities Paying agents'fees N etcash used by capitaland rclated financing activities ( ) (201,256) (1,305,000) (347,943) 0, ,558 ( ( ( a2 51 (201,256) (1,3o5,ooo) (347,943) ,558 (715) (1.664,.~ 3 (607,379) (550,000) (358,763) (465,0001 (33, ,379 (~ ~1, (continued)

18 CITY OF ABBEV ILLE,LOU ISIAIAN A Com bined Statem entof CaslFlows- A llproprietary Fund Types- Continued YearEnded D ecem ber31,1998 (W ith ComparativeTotalsfortileYearEnded December31,1997) Enterprise Fund Internal Service Funds "l'olals (M emorandum Only) Cash flow s from investing activities: Redemption(purchase)ofinvesmler,ts Intereston interest-bearing depositsand investm ents Netcash provided(used)by investn'tentactivities N etdecrease in cash and cash equivalents Cash and cash equivalents,beginning Cash and cash equivalents,ending $ 808,000 $ $ 808,000 $ (105,000) 77,433 10, , ,433 10, Q ( , , ,067 (324,308) ~ 2J~(.~ $ 622,737 $ L g~ $ 462,458 Reconciliation ofcasl;and cash equivalentsperstatem entof cash flow sto tile balance sheet: C ash and cash equivalents,beginning: (ash -U nrestricted h',terest-bearing deposits-unrestricted Cash -restricted Interest-bearing deposits-restricted Totalcash and cash equivalents $ 46,618 $ $ $ 46, , $ $ 20, ,349 17, $ '.'.'.'.'.'.'.'dfiQ Cash and cash equivalents,ending: Cash -nnrestricled Interest-bearing deposits-unrestricted Cash -restricted Interest-bearing deposits-restricted Totalcash and cash equivalents $ 22, , $ 622~ 2 $ 22,579 $ 46, , , , $ ,254 } 958.5~ O SU RF O F N O N CA SllFIN A N CING A CTIV ITIES O n O ctober 1,1998 the C ity of A bbeville issued revenue refunding bondsof $3,230,000. Tilerevenue reflm ding bonds,. :crc issued atparand tile proceedsof $3,230,000 along w ith existing City fundsof$903,050 were used to purchase LI..'q.G overnm entsecurities w hich w ere placed in an irrevocable trustw ith alescrow agentforthe purpose ofadvance refunding $3,945,000 ofrevenuerefunding bondscallableon Dccernbcr1,1998. Theaccotnpanying notesconstitute alinlegra]partofthisstatelnen

19 CITY O F A BBEVILLE,LO U ISIAN A N otesto FinancialStatem ents N O TE I SU M M A RY O F SIGN IFICAN T A CCO U NTIN G PO LIC IES Introduction The City of A bbeville w as incoq~orated M arch 13, 1850,by specialcharter and operates under M ayor Councilform of G overn m ent. A. B asisof Presentation The accounting and reporting policies of the C ity of A bbeville have been prcparcd in conform ity w ith generally accepted accounting principles as applied to governm entunits, exceptforthe om ission of allcom ponentunits. Such accounting and rcporting procedurcs also conform to the guidessetforth in the industry auditguide,a uditsof State and l,oea G overn m entalu nitṣ, the l,ouisiana G overnm entala uditg uide and the interpretations of the N ational Council on Govern m ental Accounting (NCGA), The Govcm mental Accounting StandardsBoard (GASB)istheaccepted standard setting body forestablishing accounting and financialreporting principlcs. 13. R cportin~ The C ity of A bbevillc,louisiana isa m unicipalcorporation govern ed by an elected board. These financial statem ents present only the financial activity of the City of Abbcville, I,ouisiana(theprimary governm ent). They do notincludethedataofthecomponentunits necessary forreporting in conformity w ith generally accepted accounting principles. C. Fund A ccountin~g The City usesfundsand accountgroupsto reporton itsfinancialposition and the resultsof its operations. Fund accounting is designed to dem onstrate legalcom pliance and to aid financialm anagem entby segregating transactions related to certain governm entfunctions oractivities. A fund is a separate accounting entity w ith a self-balancing setofaccounts. A n account grour,on the otherhand,isa financialreporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affectnetexpendable available financialresources. Funds are classified into three categories:governm ental,proprietary and fiduciary. Each category,in turn,isdivided into separate "fund types." G overnm ental funds are used to account for all or m ost of a governm ent's general activities,including thecollectionand disbursementofearmarked monies(specialrevenue funds),theacquisition orconstructionofgeneralfixed assets(capitalprojectsfunds),and theservicing ofgenerallong-term debt(,debtservice funds). The generalfund isused to accountforallactivitiesof the generalgovernm entnotaccounted forin som e otherfire d.

20 CITY O F A BBEV ILLE,LO U ISIAN A Notesto FinancialStatements(Continued) NOTE 1 SUM M ARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Proprietary funds are used to accountfor activities sim ilar to those found in the private sector,w here the determ ination ofnetincom e is necessary or usefulto sound financial adm inistration. G oodsorservices from such activities can be provided eitherto outside parties (enterprise funds) or to other departm ents or agencies primarily within the governm ent(intern alservicefunds). Fiduciary fundsarc used to accountforassetsheld on behalf of outside partieg, oron behalf of other flm ds w ithin the governm ent. Agency ftm ds generally are used to accountfor assetsthatthe governm entholdson behalfof othersastheiragent. D. Basisof A ecountine The accounting and financialreporting treatm entapplied to a fire d is determ ined by its m easurem entfocus. A llgovern m ental funds are accounted for using a current financial resources m easurem ent focus. W ith this m easurem ent focus,only current assets and current liabilities generally are included on the balance sheet. O perating statem ents of these fimdspresentincreases(i.e.,revenuesand otherfinancing sources)and decreases (i.e.,expendituresand otherfinancing uses)in netcurrentassets. A llproprietary funds are accounted for on a flow of econom ic resources m easurem ent focus. W ith this m easurem ent focus,all assets and all liabilities associated w ith the operation ofthese fundsarc included on the balance sheet. Fund equity (i.e.,nettotal assets)issegregated into contributed capitaland retained earningscomponents.proprietary fund-type operating statements present increases (e.g.,revenues) and decreases (c.g. expenses)in nettotalassets. ']'he m odified accrual basis of accounting is used by all governm ental fire d types and agency funds. U nderthe m odified accrualbasis ofaccounting,revenues are recognized when susceptible to accrual(i.e.,when they becom e both m easurable and available). "M easurable" m eans the am ount of the transaction can be determ ined and "available" m eans collectible w ithin the currentperiod or soon enough thereafter to be used to pay liabilitiesofthe currentperiod. Expendituresare recorded w hen the related fund liability is incurred. Principaland intereston generallong-term debtare recorded as fund liabilities w hen due orwhen am ountshave been accum ulated in the debtservice fund forpaym entsto be m ade early in the follow ing year. Those revenues susceptible to accrualare property taxes,sales taxes, intcrgovcrnm ental revenues and charges for services. Fines,perm its and licenses are not susceptible to accru albecause genelally they are notm easurable untilreceived in cash. The accrualbasisofaccounting isutilized by proprietary fund types. U nderthism ethod, revenues are recorded when earn ed and expenses are recorded at the tim e liabilities arc incurred."lqm City usesfa SB pronouncem entsforitsproprietary activities. ' 16

21 CITY OF A BBEVILLE,LO U ISIAN A Notesto FinancialStatements(Continued) NOTE 1 SUM M ARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The governm ent reports deferred revenue on its com bined balance sheet. Deferred revenues arise w hen a potential revenue does not m eet both the "m easurable" and "available" criteria forrecognition in the currentperiod.d eferred revenuesalso arise w hen resourcesare received by the govern m entbefore ithasa legalclaim to them,aswhen grant m onies are received prior to the ineurrence of qualifying expenditures. Il subsequent periods,w hen both revenue recognition criteria are m et,or w hen the govern m enthas a legal claim to the resources,the liability for defen'ed revenue is rem oved from the com bined balance sheetand revenue isrecognized. E. B udgets are adopted on a basis consistentw ith generally accepted accounting principles. A nnualappropriated budgetsare adopted forthe general,specialrevenue,debtservice,and capitalprojectsfunds.allannualappropriationslapseatfiscalyearend. F. Encum brance A ccountine Encum brances represent com m itm ents related to unperform ed contracts for goods or services. ];,ncum branee accounting under w hich purchase orders, contracts and other com m itm ents forthe expenditure of resources are recorded to reserve thatportion of the applicable appropriation isnotem ployed by the C ity. G. Cash and InterestB earine D enosits Cash representsnon interestbearing dem and deposits Interest bearing deposits include interest bearing dem and deposits and short-term tim e deposits.these interestbearing depositsare stated atcostwhich approxim atesm arket. U nder state law,the City of A bbevillc m ay deposit funds w ith a fiscalbank organized underthe law sof the State of Louisiana,the law sof any otherstate in the union orthe law s of the U nited States. Further,the City m ay investin tim e depositsorcertificatesof deposit of state banksorganized underlouisiana law and nationalbankshaving principle officesil Louisiana. Forthe purpose of the statem entof cash flow s,the City considerscash and interestbearing depositsw ith an initialm aturity date of 90 daysorless to be cash and cash equivalents.!i. Short-Term lnterfund R eceivables/pavables Shortterm interfund loansreceivable and payable are classified as"due fiom otherfunds or"due to otherfnnds" on the balance sheet. 17

22 C ITY O F A BBEV ILLE,LO U ISIAN A Notesto FinancialStatements(Continued) NOTE 1 SUM M ARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Inventories Inventory isvalued atcost(weighted-average). The costisrecorded asan expenditureat the tim e individualinventory item sare used. Inventory in the G eneralfund consistsofgas, dieseland oilatthe m otorpoolbarn. G eneralfund inventoriesare equally offsetby a fund balance reserve w hich indicatesthatthey do notconstitute "available spendable resources" even though they are a com ponentof netcurrentassets. U tility System Fund inventory consistsprim arily of partsand suppliesto be used form aintenance oftheutility system. Restricted A ssets Certain proceedsofenterprise fund revenue bonds,asw ellascertain resourcessetaside for theirrepaym ent,are classified asrestricted assetson the balance sheetbecause theiruse is lim ited by applicable bond eonvenants, qqae "R efunding B ond Sinking Fund" isused to set aside resources necessary to m eet annual debt service requirem ents. The "Capital Additions and Contingency Fund" reports resources set aside to m eet unexpected contingenciesorto fund significantassetreplacem entsorrepairs. "Custom ers'deposits" representadvance depositsreceived from utility custom ersw hich shallbe eitherrefunded upon term ination of servicesorapplied tow ard billingsin arrears. K. Fixed A ssets G eneral fixed assets are notcapitalized in the funds used to acquire or constructthem. Instead,capitalacquisition and construction are reflected as expenditures in governm ental funds,and the related assets are reported in the general fixed assets accountgroup. A ll purchased fixed assetsare valued atcostwhere historicalrecords are available and atan estim ated historicalcostwhere no historicalrecordsexist. D onated fixed assetsare valued attheirestim ated fairm arketvalue on the date received. Estim ated am ountsarcim m atcrial in relation to totalfixed asscts. The costs of nonnalm aintenance and repairs thatdo notadd to the value ofthe assetor m aterially extend asset lives are not capitalized. Im provem ents are capitalized and depreciated overthe rem aining usefullivesof the related fixed assets,asapplicable. Publicdomain("infrastructure")generalfixed assetsconsisting ofroads,bridges,curbsand gutters,streetsand sidewalks,drainage system sand lighting system sarenotcapitalized,as these assetsare im m ovable and of value only to the governm ent. A ssets in the general fixed assets account group are not depreciated, l)cprcciation of buildings,equipm ent and vehicles in the proprietary fnnd types is com puted using the straight-line m ethod. 18

23 CITY OF ABBEVILLE,LO UISIAN A N otesto FinancialStatements(Continued) NO'IT,1 SUM M ARY OF SIGN1F1CANT ACCOUNTING POLICIES (CONTINUED) Com nensated Absences- For classified em ployees,up to I/3 of the earned, but unused,vacation leave shallbe credited to the em ployee's sick leave account. A ny relnaining vacation leave shallbe carried lo the follow ing year. U pon term ina~tion of em ploym ent, forotherlhan disciplinary reaso ns, the em ployee shallbe paid forunused vacation earned during tile priorcalcndar year. In case of death of the em ployee,unused Vacation shallbe paid to the beneficiary of the em ployee. Sick leave and otherabsencesofunclassified employees(notcovered by thecivilservice system)arc dctcrm incd on a case-by-casebasisatthem ayor'sdiscretion. The costof currentleave privileges is recognized as a currentyear expenditure in the individual fund w hen leave is actually taken. The liability for accunm lated sick leave benefits expected to be paid in future years is recorded in the general long-term debt accountgroup. M. l@ ~ Long-tcm 'ldebtis rccognizcd as a liability of a govern m entalfund w hen due, or w hen resources have been accum ulated in the debt service fund for paym ent early in the follow ing year. Forotherlong-term obligations, only thatportion expected to be financed from expendable available financial resources is reported as a fund liability of a governm entalfund. The rem aining portion of such obligations is reported in the general long-term debt account group. Long-term liabilities expected to be financed from proprietary hin d operationsare accounted forin those funds. N. Ftm~ Reserves represent those portions of fund legally segregated for specific future use. plansforfuture use offinancialresources. equity not appropriablc for expenditures or D esignated fund balances reprcseottentative 19

24 CITY O F A BBEV ILLE.LO U ISIA N A N otesto FinancialStatem ents(conlin'aed) NOTF,1 SUM M ARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G rants,entitlem ents,orshared revenues received thatare restricted forthe acquisition or construction of capitalassets are recorded as contributed capitalin the Enterprise Fund. Contributed capitalisam ortized based on the depreciation recognized on thatportion of the assets acquired from such contributions. This depreciation is closed to the contributed capitalaccountand isreflectedasan adjustmentto netincome. O. D eferred Losson Pronrietarv Fund D ebtrefundin~ - In accordance w ith G A SB-23 the difference betw een the book value ofthe refunded debt and tim am ountrequired to retire the debtis accounted for as a deferral. The deferred am ountisreported on the proprietary fundsbalance sheetasa decrease to the book valueof the new debt. The deferalisam ortized overtbe life of the new debtusing the straightline m ethod. Q Quasi-extern al transactions are accounted for as revenues, expenditures or expenses. Transactions thatconstitute reim bursem ents to a fund forexpenditures/expenses initially m ade from it that are properly applicable 1o another fund, are recorded as expenditures/expensesin the reim bursing fund and asreductionsof expenditures/expenses in the fund thatisreim bursed. A llotherinterfund transactions,exceptquasi-externaltransactionsand reinlbursem ents,are reported as transfers. N onrecurring or nonroutine permanent transfers of equity are reported asresidualequity transfers. A llotherinterfim d transfersare reported asoperating transfers. U ncollectable am ounts due for ad valorem taxes, sales taxes, and custom ers' utility receivablesare recognized asbad debtsby directwrite-of atthe tim e inform ation becom es available w hich w ould indicate the uncollectability of the particularreceivable. A lthough the specific charge-offm ethod is notin conform ity w ith generally accepted accounting principles (GAAP), no alowance for uncollectible receivables was m ade due to im m ateriality ati)ecem ber31,1998. R. Carfitalization of InterestEx'0ense Itisthe policy ofthe City ofabbeville to capitalize m aterialam ountsofinterestresulting flora borrow ings in the course of the constru ction offixed assets. D uring the yearended l)ccem bcr3 I,t998,the C ity did notcapitalize any interestexpense. 20

25 CITY OF ABBEVILLE,LOUISIAN A Notesto FinancialStatements(Continued) NOTF,1 SUM M ARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. M em orandum O nly - TotalColum ns Totalcolum nson the financialstatem ents are captioned "m em orandum only" to indicate thatthey are presented only to facilitate financialanalysis. D ata in these cohmm sdo not present financial position, results of operations or changes in financial position in conform ity w ith generally accepted accounting principles. N either are such data com parable to a consolidation, lnterfund elim inations have not been m ade in the aggregation ofthisdata. q'. _Com parative D ate Com parative total data for the prior year have been presented in the accom panyin financialstatem ents in orderto provide an understanding of changes in tile governm ent' financialposition and operations, ttow ever,com parative data have notbeen presented i allstatem entsbecause theirinclusion would m ake certain statem entsunduly complex an difficultto understand. U. Related O rganizations- The City'sofi cialsare also responsible forappointing tile board m em bersof the Abbevillc llousing A uthority,but the City's Accountability for this organization does not extend beyond m aking the appointm ents. N O TE 2 A D V A LO R EM TA X ES A d valorem taxesattach as an enforceable lien on property as of January 1 ofeach year. Taxes are levied by the City in Septem ber or October and are actually billed to 1he taxpayers in N ovem ber. t:~illed taxesbecom e delinquenton January 1 of the follow ing year. Revenuesfiom ad valorem taxesare budgeted in the yearbilled. q'he City billsand collectsitsown property taxesusing the assessed valuesdeterm ined by the tax a~sessorof V crm ili~3~ Parish. Forthe yearended D ecem ber31,1998 taxes of 6.72 m illsw ere levied on property w ith assessed valuation totaling $35,86%048. A recap ofthem illage,assessm ent,taxeslevied and collected is asfollow s:

26 CITY O F ABBEV ILLE,LOU ISIA N A Notesto FinancialStatem ents(continued) Assessed V alue Total Tax (6.72 M ills) G eneral A lim ony (5.38M ills) Public lm provenlen (1.34M ils) TaxableProperty $36,350,530 Less:Adjustments,Cancellations,Etc. ( ) Totalsperadjustedroll ~'~ ~ Less: Tax collected $ 244,278 (3.238) 241,040 ( ) $ 195,568 (2.577) 192,991 ( / $ 48,710 (6fi13 48,049 {32.177~ Tax to becollected N O TE 3 SA LES TA X Proceeds ofa 1 percentsales and use tax levied by tile City ofabbeville (1998 collections $1,564,995) are dedicated to the purposes ofopening,constru cting,paving,resurfacing and im proving streets, alleys, sidew alks, sew ers, lighting and pow er plants; constructing and im proving drains,drainage canals and sub-surface drainage;constructing and purchasing fire departm entstations and equipm ent;constructing and purchasing police departm entstations and equipm ent;constructing and purchasing garbage disposaland health and sanitation equipm ent and facilities;constru cting publicbuildings;purchasing,constru cting and im proving public parks and recreational facilities and acquiring the necessary equipm ent and furnishings therefor; purchasing equipm ent for civil defense; constructing, acquiring or im proving any w ork of permanentpublic im provem ent;and purchasing and acquiring allequipm entand furnishing for thepublicworksbuildingsim provem entsand facilitiesin thecity ofa bbevillc. Proceedsofa.25 percentsalesand use tax levied by ttre City ofabbevile (1998 collection $155,684)are dedicated to and shallbe allocated periodically forthe purpose ofincreasing the salaries forpublic safety em ployeesofthe City of A bbeville. N O TE 4 BU I)G ETS A N D BU D G ETA RY A CCO U NTIN G The City follow s these procedures in establishing the budgetary data reflected in the financia statem ents: 1. The M ayorpreparesa proposed budgetand subm itsitto tim City Councilno laterthan fifteen dayspriorto the beginning of each fiscalyear. 2. A sum m ary ofthe proposed budgetis published and the public notified thatthe proposed bndgetisavailable forpublic inspection. A tthe sam e tim e a public hearing iscalled. 3. A public bearing is held on the proposed budgetatleastten daysafterpublication ofthe c,n forthe hearing. 4. A fter holding ofthe public hearing and com pletion of allaction necessary to finalize and im plem entthe budget,tile budgetis adopted through passage ofan ordinance prior to tile com m encem entofthe fiscalyearforw hich the budgetisbeing adopted. 22

27 CITY OF A BBEV1LLE,LO U ISIAN A N otesto FinancialStatements(Continued) B udgetary am endm ents involving the transfer of funds from one departm ent,program or function to anotherorinvolving increasesin expendituresresulting from revenuesexceeding am ountsestim ated require the approvalof the City Council. B udgets for all G overnm ental Funds are adopted on a basis consistent w ith generally accepted accounting principles (GAAP). Budgetary comparisons are presented in the financialstatem ents of these funds.budgeted am ountspresented are asoriginally adopted or asam ended from tim e to tim e by the City Council. N O TF 5 CA SIt.INTEREST BEA RIN G D EPO SITS A N D IN VESTM EN TS TheCity ofabbevilehascash,interestbearing depositsand investments(book balancestotaling $3,356,533asfollows: Petty cash and change funds D em and deposits M oney marketaccounts(interestbearing) Investm ents Tota $ 1,200 55,569 1,572,264 1,7_2.7_,2Q9 $335& ~ 53~ These depositsare stated atcost,which approximatesm arket.understate law,thesedeposits,(or the resulting bank balances)mustbe secured by federaldepositinsurance orthe pledge of securities ovalcd by the fiscalagentbank. The m arketvalue of the pledged securitiesplus the federaldepositinsurance m ustatalltim esequalthe am ounton depositw ith the fiscalagcntbank. These securities are held in the nam e of the pledging fiscalagentbank in a holding orcustodial bank thatism utually acceptableto both parties. Depositbalances(bank balances)atdcccmbcr arc secured asfollow s: Bank balances $ 3,651,557 Federaldepositinsurance Balance uninsured Pledged securities(category 3) FxcessFD IC insurance and pledged securities O vercash and investm ents 3,051,557 _ 6,417,938 _~3,366,381 Pledged securities in Category 3 includes uninsured or unregistered investm ents for which the securitiesare held by the brokerordealer,orby itstrustdepartm entoragent,butnotin the City's name.even though the pledged securitiesarc considered uncollateralizcd (Category 3),statelaw im posesa statutory requirem enton the custodialbank to advertise and sellthe pledged securities w ithin 10 daysof being notified by the City thatthe fiscalagenthasfailed to pay deposited funds upon dem and.

28 CITY OF ABBEVILLE,LOU ISIAN A Notesto FinancialStatem ents(continued) Investm ents consistof certificates of deposit totaling $1,727,500 held atvarious localbanks. M aturities range from 62 days to 365 days and interestrates vary from 4.09% to 5.28%. A $125,000 certificate of depositispledged to the Louisiana D epartm entof Laborto guaranteethe C ity'sw orkerscom pensation program. Atl)ecem bcr31,1998 the City held $6,814 in an escrow accountin "the G eneralfund which are fllnds confiscated by the Police Departm entw hich have notyetbeen released by the D istrict Attorn ey'so ffice(seenote 11). N O'I'F~6 D U E FRO M O TttER G O V ERN M ENTA L U N ITS Am ountsduc from othergovernm entalunitsconsisted & the follow ing atd ecem ber31,1998 1)ue from O ffice of RuralDevelopm entfor SellersField bleachers D ue from Louisiana D epartm entofthe Treasury forvideo pokerrevenue D ue from FederalA viation A dm inistration for A irportim provem entprogram D ue from Louisiana llighw ay Safety Com m ission for Safe and SoberCom paign D ue from Louisiana Com naission on Law Enforcem entfor streetsalesdisruption grant D ue from State ofl.ouisiana D OTD fora irportg rant l)ue from State oflouisianad OTD form aintenance R eim bursem ent D ue from Louisiana D epartm entof Culture,Recreation and Tourism form ain StreetG rant D ue from LouisianaCom m ission on Law Enforcem entfor D are G rant D ue from A cadianaa rtscouncil for C ulture and Recreation G rant Tota $ 40,000 24,155 31,683 2,723 3,278 21,417 6,344 1, ~ Z $1~12,398 N OTF 7 RESTR ICTED A SSETS - PRO PRIE'I'A RY FUN D TYPE Restricted assetsw ere applicableto the follow ing atd ecem ber31,1998 Refunding bondssinking fund Refunding bondscapitaladditions and contingencies fire d C ustom ers'deposits Total $ 61, , Ot)O $

29 CITY O F A BBEVILLE.LO U ISIA N A Notesto FinancialStatements(Continued) N O TF.8 FIX ED A SSETS A sum m ary of changesin generalfixed assetsforthe yearended D ecem ber31,1998 follows Balance D ecem ber31, 1997 A dditions Balance D ecem ber31 D eletions 1998 Land Buildings Im provem entsolher than buildings Equipm ent TotalG eneralfixed A ssets $ 483,101 $ 36,500 $ 2,319, , ,039, ,168 10,722, ,570,020 A sum m ary of changesin proprietary fire d type property D ecem ber31,1998 follow s: Balance D ecem ber31, 1997 A dditions plantand eqnipm entforthe yearended Balance D ecem ber3 D eletions 1998 Electric utility: Extensionsand im provem ents Linesand m eters W aterutility: "lyeatm entplant Extensions Im provem ents l.incsand m eters Sew erage utility: Treatm entplant Liftpum ps Extensionsand im provem ents O therassets: B uildings A utom obilesand trucks Furn iture and fixtures Sm alltoolsand equipm ent U tility building Eealestate C onstruction in progrcss Total $ 5,940,173 1,899, ,971 3,072,921 2,027, ,479 4,745, ,694 6,125, , , , , , $ 60,305 4,358 10,258 6,534 13,293 22,252 12,332 10,698 32,820 1,446 19,849 7,1! $ ,000,478 1,903, ,229 3,079,455 2,027, ,767, ,026 6,136, , , , , ,968 70,929 7,! Less: A ccum ulated depreciation LSA 1 SLR2 ~3 N etproperty,plant and equipm ent $ 11,!09,698 25