ofthe CITYOFDENHAMSPRINGS DenhamSprings,Louisiana FortheFiscalYearEnded June30,203 AcountingDepartment

Transcription

1 AnualFinancialReport Comprehensive ofthe CITYOFDENHAMSPRINGS DenhamSprings,Louisiana FortheFiscalYearEnded June30,203 CityofDenhamSprings Preparedbythe AcountingDepartment

2 CITYOFDENHAMSPRINGS DENHAMSPRINGS,LOUISIANA COMPREHENSIVEANUALFINANCIALREPORT FORTHEYEARENDEDJUNE30,203 TABLEOFCONTENTS NTRODUCTORYSECTION TableofContents LeterofTransmital PrincipalElectedOficials OrganizationalChart CertificateofAchievementbrExcelence infinancialreporting IndependentAuditor'sReport Management'sDiscusionandAnalysis BasicFinancialStatements: Government-WideFinancialStatements StatementofNetAsets StatementofActivities FundFinancialStatements: GovernmentalFunds: BalanceShet ReconciliationoftheGovernmentalFundsBalance ShetotheStatementofNetAsets StatementofRevenues,Expenditures,and ChangesinFundBalances ReconciliationoftheStatementofRevenues, Expenditures,andChangesinFundBalancesof GovernmentalFundstotheStatementofActivities StatementofRevenues,Expenditures,andChanges infundbalance-budget(gapbasis)and Actual-GeneralFund StatementofRevenues,Expenditures,andChanges infundbalance-budget(gapbasis)and Actual-CapitalProjectsFund EXH~IT/ SCHEDULE/ TABLE ExhibitA-1 ExhibitA-2 ExhibitB-1 ExhibitB-2 ExhibitB-3 ExhibitB-4 PAGE NUMBER 1 ivixx xi ExhibitB ExhibitB-6 38

3 CITYOFDENHAMSPRINGS DENHAMSPRINGS,LOUISIANA COMPREHENSIVEANUALFINANCIALREPORT FORTHEYEARENDEDJUNE30,203 TABLEOFCONTENTS(CONTINUED) EXH~IT/ SCHEDUL~ TABLE FINANCIALSECTIONfCONTINUED ProprietaryFunds: StatementofNetAsets StatementofRevenues,Expenses,andChanges innetasets StatementofCashFlows NotestoFinancialStatements CombiningandIndividualFundStatementsandSchedules: NonmajorGovernmentalFunds: CombiningBalanceShet CombiningStatementofRevenues,Expendituresand ChangesinFundBalances CapitalAsetsUsedintheOperationofGovernmentalFunds CapitalAsetsUsedintheOperationofGovernmental FundsSchedulebySource CapitalAsetsUsedintheOperationofGovernmental FundsSchedulebyFunctionandActivity CapitalAsetsUsedintheOperationofGovernmental FundsScheduleofChangesbyFunctionandActivity Schedule(SuplementaryInformation): ScheduleofInsuranceCoverageinForce -1- ExhibitC-1 ExhibitC-2 ExhibitC-3 ExhibitD-1 ExhibitD-2 ExhibitE-1 ExhibitE-2 ExhibitE-3 PAGE NUMBER Schedule

4 CITYOFDENHAMSPRINGS DENHAMSPRINGS,LOUISIANA COMPREHENSIVEANUALFINANCIALREPORT FORTHEYEARENDEDJUNE30,203 TABLEOFCONTENTS(CONTINUED) EXHIBIT/ SCHEDULE/ TABLE STATISTICALSECTION(UNAUDITED GeneralFundExpendituresandOther UsesbyFunction GeneralFundRevenuesandOther FinancingSources GeneralFundTaxRevenuesbySource PropertyTaxLeviesandColections AsesedandEstimatedActualValue oftaxableproperty PropertyTaxRatesandTaxLevies- DirectandOverlapingGovernments SpecialAsesmentColections StatementofLegalDebtLimit RatiofNetGeneralBondedDebtoAsesed ValueandNetBondedDebtPerCapita RatiofAnualDebtServiceExpenditures forgeneralbondeddebtototal GeneralGovernmentalExpenditures ComputationofDirectandOverlapingDebt SumaryofRevenueBondCoverage DemographicsStatistics Construction PrincipalSalesTaxpayers MiscelaneousStatistics -nl- Schedule2 ScheduIe3 Schedule3A Schedule4 Schedule5 Schedule6 Schedule7 Schedule8 PAGE NUMBER Schedule Schedule10 Schedule1 Schedule12 Schedule13 Schedule14 Schedule15 Schedule

5 JAMESE,DELAUNE MAYOR COUNCIL ARTHURL.PERKINS,SR L.LAYTONRICKS,JR. BRENTA,DUGAS JAMESE.DURBIN STERLINGVINCENT LERLINEBARNET CITYCLERK CLARENCESPED.JR. CITYTREASURER September19,203 TotheHonorableMayor,MembersoftheCityCouncil, andcitizensofthecityofdenhamsprings Statelawrequiresthatalgeneralpurposelocalgovernmentspublishwithinsixmonthsofthecloseofeach fiscalyearacompletesetofinancialstatementspresentedinconformitywithgeneralyacepted acountingprinciples(gap)andauditedinacordancewithgeneralyaceptedauditingstandardsbya firmoflicensedcertifiedpublicacountants.pursuantothatrequirement,weherebyisuethe comprehensiveanualfinancialreportofthecityofdenhamspringsforthefiscalyearendedjune30, 203. Thisreportconsistsofmanagement'srepresentationsconcerningthefinancesoftheCityofDenham Springs.Consequently,managementasumesfulresponsibilityforthecompletenesandreliabilityofal oftheinformationpresentedinthisreport.toprovideareasonablebasisformakingthesere-presentationș managementofthecityofdenhamspringshasestablishedacomprehensiveinternalcontrolframework thatisdesig,r~edbothtoprotecthegovernment'sasetsfromlos,theft,ormisuseandtocompilesuficient reliableinformationforthepreparationofthecityofdenhamsprings'financialstatementsinconformity withgap.becausethecostofinternalcontrolshouldnotoutweightheirbenefitșthecityofdenham Springs'comprehensiveframeworkofintemalcontrolshasbendesignedtoprovidereasonableratherthan absoluteasurancethathefinancialstatementswilbefrefromaterialmistatement.asmanagement, weaserthat,tothebestofourknowledgeandbelief,thisfinancialreportiscompleteandreliableinal materialrespects. HanisT.Bourgeois,LP,afirmoflicensedcertifiedpublicacountantshasauditedtheCityofDenham Springs'financialstatements.Thegoaloftheindependentauditwastoprovidereasonableasurancethat thefinancialstatementsofthecityofdenhamspringsforthefiscalyearendedjune30,203,arefreof materialmistatement.theindependentauditinvo~vedexam~ning,onatestbasis,evidencesuportingthe mountsandisclosuresinthefinancialstatements;asesingtheacountingprinciplesusedand significantestimatesmadebymanagement;andevaluatingtheoveralfinancialstatementpresentation. Theindependentauditoreoncludedbasedontheaudit,thatherewasareasonablebasisforenderingan unqualifiedopinionthathecityofdenhamsprings'financialstatementsforthefiscalyearendedjune30, 203,arefairlypresentedinconformitywithGAP.Theindependentauditor's'reportispresentedasthe firstcomponentofthefinancialsectionofthisreport. DENHAMSPRINGS,LOUISIANA POSTOFICEBOX1629 -iv- FAX

6 Duringthecurentfiscalyear,theCitywasnotrequiredtoundergoasingleauditinconformancewiththe provisionsoftherevisedsingleauditactof196andtheu.s.oficeofmanagementandbudget CircularA-13,AuditsofStates,LocalGovernmentsandNon-ProfitOrRanizations.Informationrelatedto theauditor'sreportoncomplianceandoninternalcontroloverfinancialreporting,isincludedina separatelyisuedreportandisavailableuponrequest. GAPrequiresthatmanagementprovideanarativeintroduction,overview,andanalysistoacompany thebasicfinancialstatementsintheformofmanagement'sdiscusionandanalysis(md&a).thisleter oftransmitalisdesignedtocomplementmd&aandshouldbereadinconjunctionwithit.thecityof DenhaznSprings'MD&Acanbefoundimediatelyfolowingthereportoftheindependentauditors. ProfileoftheGovernment TheCityofDenhamSprings,incorporatedini903,islocatedonthewesternsideofLivingstonParishand isadjacentoeastbatonrougeparish,whichcontainsthecapitalcityofbatonrougeandisamajor industrialarea.thecityofdenlamspringscurentlyocupiesalandareaof6.12squaremilesandserves apopulationof8,97.thecityofdenhamspringsisempoweredtolevyapropertytaxonbothrealand personalpropertieslocatedwithinitsboundaries.italsoisempoweredbystatestatutetoextendits corporatelimitsbyanexation,whichocursperiodicalywhendemedapropriatebythegoverning council. TheCityofDenhamSpringshasoperatedunderthemayor-boardofaldermen(citycouncil)formof governmentsince1903.policy-makingandlegislativeauthorityarevestedinagoverningcouncil consistingofivecouncilmembers.thegoverningcouncilisresponsible,amongotherthings,forpasing ordinances,adoptingthebudget,andapointingcomites.themayorisresponsibleforcaryingouthe policiesandordinancesofthegoverningcouncil,foroverseingtheday-to-dayoperationsofthe government,andforapointing,withtheaprovalofthecitycouncil,theheadsofthevariousdepartments. Themayorandthecitycouncilarelectedatlarge.Themayorandthefivecouncilmemberservefouryearterms. TheCityofDen_hamSpringsprovidesafulrangeofservices,includingpoliceandfireprotection, maintenanceofstretsandrainage,maintaininglandscapebeautification,animalcontrol,litercontrol, cemetery,generaladministrativeservices,planingandzoning,buildinginspection,mainstretprogram, healthservices,gaservices,waterservices,sewerservicesandrec3clingandsolidwastedisposal. TheanualbudgetservesasthefoundationfortheCityofDenhamSprings'financialplaningandcontrol. AlagenciesoftheCityofDenhamSpringsarerequiredtosubmitrequestsforapropriationtothecity treasurer.thecitytreasurerusestheserequestsasthestartingpointfordevelopingaproposedbudget. Thecitytreasurerthenpresentsthisproposedbudgetothecitycouncilforeview.Thecitycouncilis requiredtoholdapublichearingontheproposedbudgetandtoadoptafinalbudgetbynolaterthan June30,thecloseoftheCityofDenhamSprings'fiscalyear.Theapropriatedbudgetispreparedby fiand,function(e.g.,publicsafety),andepartment(e.g.,police).departmentheadsmaymaketransfersof apropriationswithinadepartuaent.transfersofapropriationsbetwendepartments,however,require thespecialaprovalofthegovemingcouncil.budget-to-actualcomparisonsareprovidedinthisreportfor eachindividualgovernmentalfundforwhichanapropriatedanualbudgethasbenadopted.forthe ov-

7 generalfund,thiscomparisonispresentedonpages26-37aspartofthefinancialstatementsofthe governmentalfunds.theonlyothergovernmentalfundwithananualapropriatedbudgetisthecapital ProjectsFund.Becausethisfundisalsoconsideredamajorfired,thebudgetcomparisonispresentedon page38aspartofthefinancialstatementsofthegovernmentalfunds. FactorsAfectingFinancialCondition Theinformationpresentedinthefinancialstatementsisperhapsbestunderstodwhenitisconsideredfrom thebroaderperspectiveofthespecificenvironmentwithinwhichthecityofdenharnspringsoperateṣ Localeconomy.TheCityofDenbmnSpringscurentlyenjoysafavorableconomicenvironmentand localindicatorspointocontinuedstability.theregionhasavariedindustrialbasethatadstotherelative stabilityoftheunemploymentrate.majorindustrialareaslocatedwithincloseproximityincludethe petrochemicalmanufacturingplantsandthecompaniesuportedbytheseplantsuchasuplierș contractors,profesionalsandfinancialinstitutions.adtothisthestategovernmentaljobavailabilityin thesuroundingareasofbatonrouge,thestatecapitalforthestateoflouisiana,andthebusineses suportedirectlyandindirectly. ThepopulationinareasnearDenhamSpringscontinuestogrowasresidentsrelocatetoLivingstonParish toenjoylowercrimeratesandarespectedscholsystem.retailersarefolowingthepopulationgrowth andarelocatingorexpandingoperationswithinthecityofdenhamsprings.availabilityofcomerciai propertieswithcityservicesincludingpoliceandftreprotectionaremajorfactorswithretailersdecidingto locatehere. ConstructedandopenedforbusinesinmidApril203isanewHomeDepotbuildingandhardwarestore. Athisamesite,outparcelconstructionhascomencedforanewcreditunionandanewChili's Restaurant,whileothercomercialprospectsinvestigatetheirposibilities.Intheplaningstageisthe constructionofalargesupermarketonfloridablvd. RecentlyanouncedisthedevelopmentofanewBasProShop.Conservatively,constructioncostforthis newretailcenterisbetwen$40-$50miliondolars.anticipatedaditionalconstructionisahotelanda "powerstripmal". Thedevelopmentofthe160,0squarefotBasProShopwithinthenewcitylimitswasmadeposible throughanexation.thecityandtheunitedstatesjusticedepartmentbothgavefinalaprovalforthe anexationofatractoflandonthenorthsideandthretractsoflandonthesouthsideofthecity. AcomplishedwastheCity'sgoalofexpandingcomercialgrowthwithinthecity,andinreturnproviding comercialbusinesesfireandpoliceprotectionplustheaditionalbenefitofsavingontheirproperty insurance. Theregion(whichincludestheCityofDenhamSpringsandthesuroundingunincorporatedareawithin LivingstonParish)hasanemployedlaborforceofaproximately46,90.TheCityofDenhamSprings' centralbusinesdistrictisexpectedtomaintainitscurent97percentocupancyratewithavarietyof stores,specialtyshops,andcomercialbusineses. Long-termfinancialplaning.TheCitywilcontinuetoimproveservicesandupgradeinfrastructure, Projectsplanedforthefutureinclude: -Vl-

8 ;~Constructionoftheprojected$5.2milionRangeAvenuepairingproject.Thisprojectistobe fundedbythestateoflouisiana. RodeoDriveoverlayandrainageimprovementsataprojectedcostof$240,0 SewereplacementalongRodeoDriveataprojectedcostof$1,0,0.Thisprojectistobe fundedbyalouisianacomunitydevelopmentblockgrant(lcdbg).thecity'smatchisthe costofengineringfes. ;~IntersectionimprovementsandsignalizationatheintersectionofCockerhanlRoadandHatchel Lane;CentervileStretandHatehelLane;andHatchelLaneandFloridaBlvdfundedbyDOTD throughfederalcmaqfunds. RenovationstohistoricOldCityHalbuildiugandaditionofanexataprojectedcostof $450,0.Discusedandstudiedistheplaneduseofthisrenovatedfacilityasamusearn, comunityartscenter,andcomunitymetingplace. InterchangelopstobeconstructedatJubanRoadandPete'sHighway.Theseinterchangeprojects aretobefundedbyfederalapropriations. Exploretheposibilityofanexingaditionalareaswhereconstructionofederalyfundednew withinthecity. interstateinterchangeisplanedforjubanroad.thisareawiladaditionalcomercialgrowth ContinuedplaningandresearchofundingsourcesarebeingstudiedfortheupgradeofTateRoad fromrangeavenueandanextensionoftateroadtojubanroad.thisplanedcurbandguter stretwilprovideacesfortheplanedconstructionofanewhighschol.thiswilprovidea linktothenewinterstateinterchangeandprovidenewcomercialareas.thisiswithinthearea underconsiderationforanexation.thisisaprojectexpectedtorequireaminimumofiveyearsto complete. PlanandstudytheupgradeofthewaterandsewersystemswithintheCityofDenhamSprings,and theimprovementofwaterlinesonhwy16(pete'shighway)towardportvincent. Cashmanagementpoliciesandpractices.TheCityofDenl~amSpringsconservativelyinvesteditsidle fundsincertificatesofdeposithroughitscurentfiscalagent,hibernianationalbank.investmentsare colateralizedwithsecuritiespledgedbythefinancialinstitutionandheldinournamebyanaproved third-partycustodialbank.proceduresfolowedandsecuritiespledgedareinacordancewiththestatutes ofthestateoflouisiana.themamxitiesofthecertificatesofdepositrangefrom180daysto365days, withanaveragematurityof180days.theaverageyieldonthecertificatesofdepositwas2.13%forthe fiscalyearendedjune30,203. Riskmanagement.DaringthefiscalyearendedJune30,203managementbelievestheCityisfuly insuredforalmajorisks,suchasgeneralliability,workmen'scompensation,employeandpublic OficialFidelityBonds,andFireandExtendedCoverageandFlodInsurance.TheCitymaintainsnoselfinsuranceprogramatJune30,203. -Vl-

9 AditionalinformationontheCityofDenhamSprings'riskmanagementactivitycanbefoundinNote15 ofthenotestothefinancialstatements. Pensionandotherpostemploymentbenefits.SubstantialyalemployesoftheCityofDenham Springsaremembersofthefolowingstatewideretirementsystems:MunicipalEmployesRetirement SystemofLouisiana(MERS),MunicipalPoliceEmployesRetirementSystemofLouisiana(MPERS),or FirefightersRetirementSystemofLouisiana.Thesesystemsaremultiplemployer(cost-sharing),public employeretirementsystenas(pers),controledandadministeredbyseparatestateapointedboardof trustes.thecityofden_hamspringshasnobligationinconectionwithemployebenefitsofered throughtheseplansbeyonditsanualcontractualpaymentothesestatepensionboards. AditionalinformationontheCityofDenhmnSprings'pensionmTangementsandpostemployment benefitscanbefoundinnotes1and12inthenotestothefinancialstatements. AwardsandAcknowledgements TheGovernmentFinanceOficersAsociationoftheUnitedStatesandCanada(GFOA)awardeda CertificateofAchievementforExcelenceinFinancialReportingtotheCityofDenhamSpringsforits ComprehensiveAnualFinancialReport(CAFR)forthefiscalyearendedJune30,202.Thiswasthe seventhconsecutiveyearthathecityofdenhamspringshasreceivedthisprestigiousaward.inorderto beawardedacertificateofachievementbygfoa,agovernmentalunitmustpublishaneasilyreadable andeficientlyorganizedcafr.thisreportsatisfiedbothacountingprinciplesgeneralyacepted (GAP)intheUnitedStatesofAmerica,andaplicablelegalrequirements.ACertificateofAchievement isvalidforaperiodofoneyearonly.webelievethatourcurentcafrcontinuestomethecertificate ofachievementprogram'srequirementsandwearesubmitingitothegfoatodetermineitseligibility foranothercertificate. Thepreparationofthisreportwouldnothavebenposiblewithoutheficientandedicatedservicesof theadministrativeoficestafwhosedailyefortsresultintheproperhandlingofthecity'sfinancial afairsandthesucesfulcompletionofthisreport. ApreciationisalsoexpresedtotheMayorandCityCouncilfortheirsuportinplarmingandconducting thefinancialafairsofthecityinaresponsibleandprogresivemaner. Respectfi~1ysubmited, tj,~ CityofDenhamSt~rines,c~z't ClarenceE.Sped,Jr. CityTreasurer

10 CITYOFDENHAMSPRINGS PRINCIPALELECTEDOFICIALS JUNE30,203 Mawr: JamesE.Durbin CurentTermsExpireDecember31,206 CityCouncilMembers: LoriLam-Wiliams GeorgeMeadors ArthurPerkins JohnWascom RobertPole -1x-

11 *ELECTEDOFICIALS CITYOFDENHAMSPRINGS ORGANIZATIONALCHART JUNE30,203

12 Certificateof forexcelence Achievement infinancial Reporting Presentedto CityofDenhamSprings, Louisiana ForitsComprehensiveAnual forthefiscalyearended FinancialReport ACertificateofAchievementforExcelenceinFinancial June30,202 ReportingispresentedbytheGovernmentFinanceOficers AsociationoftheUnitedStatesandCanadato governmentunitsandpublicemployeretirement systemswhosecomprehensiveanualfinancial reports(cafrs)achievethehighest standardsingovenunentacounting andfinancialreporting. -xl-

13 e RandyJ.Bonecaze,CPA* JosephDRiohard,Jr.,CPA~ Ron/eE.Stanl[rer,CPA* Fernandp.Genre,CPA* 175DelEsteAvenue,SuiteB StephenM.Hugins,CPA* MonicaLZumo,CPA* DenhamS~,rings,LA70726 RonaldLGagl~:t,CPA* Phone:(25) MembersAmericanInstituteof DouglasJ.Nelson,CPA* Fax:(25) CertifiedPublicAcountants 232TremontDrive,Suite20 CelesteD,Viator.CPA* BatonRouge,LA70809 RuselJ.Reswcber,CPA* LauraE.Mol~oe,CPA~ *APmtcsiona]Ae~untingCorporation September19,203 INDEPENDENTAUDITOR'SREPORT TheHonorableJamesE.Durbin,Mayor DenhamSprings,Louisiana andmembersofthecitycouncil Wehaveauditedtheacompanyingfinancialstatenentsofthegovernmentalactivities,busines-type activities,theagregatediscretelypresentedcomponentunits,eachmajorfund,andtheagregate remainingfundinformationofthecityofdenhamsprings,louisiana,asofandfortheyearended June30,203,whichcolectivelycomprisetheCity'sbasicfinancialstatementsaslistedinthetableof contents.thesefinancialstatementsaretheresponsibilityofthecity'smanagement.ouresponsibilityis toexpresanopiniononthesebasicfinancialstatementsbasedonouraudit. WeconductedourauditinacordancewithauditingstandardsgeneralyaceptedintheUnitedStatesof AmericandthestandardsapIicabletofinancialauditscontainedinGovernmentAuditingStandards, isuedbythecomptrolergeneraloftheunitedstates.thosestandardsrequirethatweplanandperform theauditobtainreasonableasuranceaboutwhetherthefinancialstatementsarefreofmaterial mistatement.anauditincludesexamining,on.atestbasis,evidencesuportingtheamountsandisclosuresinthefinancialstatements.anauditalsoincludesasesingtheacountingprinciplesusedand significantestimatesmadebymanagement,aswelasevaluatingtheoveralfinancialstatementpresentation.webelievethatourauditprovidesareasonablebasisforouropinions. Inouropinion,thefinancialstatementsreferedtoabovepresentfairly,inalmaterialrespects,the respectivefinancialpositionofthegovemrnentalactivities,thebusines-typeactivities,theagregate discretelypresentedcomponentunits,eachmajorfund,andtheagregateremainingfiredinformationof thecityofdenhamsprings,louisiana,asofjune30,203,andtherespectivechangesinfinancial positionandcashflows,whereaplicable,thereofortheyearthenendedinconformitywithacounting principlesgeneralyaceptedintheunitedstatesofamerica.

14 TheHonorableJamesE.Durbin CityofDenhamSprings,Louisiana andmembersofthecitycouncil InacordancewithGovernmentAuditingStandards,wehavealsoisuedareportdatedSeptember19, 203onourconsiderationoftheCityofDenhamSprings'internalcontroloverfinancialreportingandour testsofitscompliancewithcertainprovisionsoflaws,regulations,contractsandgrants.thatreportisan integralpartofanauditperformedinacordancewithgovernmentauditingstandardsandshouldberead inconjunctionwiththisreportinconsideringtheresultsofouraudit. TheManagement'sDiscusionandAnalysisonpages4through17isnotarequiredpartofthebasic financialstatementsbutaresuplementaryinformationrequiredbythegovernmentalacounting managementregardingthemethodsofmeasurementandpresentationofthesuplementaryinfonation. StandardsBoard.Wehaveapliedcertainlimitedprocedures,whichconsistedprincipalyofinquiriesof However,wedidnotauditheinformationandexpresnopiniononit. Ourauditwasmadeforthepurposeoforminganopiniononthebasicfinancialstatementstakenasa whole.theacompanyingfinancialinformationlistedinthetable&contentsassuplementaryschedule (Schedule1)ispresentedforpurposesofaditionalanalysisandisnotarequiredpartofthebasicfinancial statementsofthecityofdenhamsprings,louisiana.suchinformationhasbensubjectedtotheauditing proceduresapliedintheauditofthebasicfinancialstatementsand,inouropinion,isfairlystatedinal materialrespectsinrelationtothebasicfinancialstatementstakenasawhole. TheacompanyingfinancialinformationlistedintheStatisticalSectionispresentedforpurposesof aditionalanalysisandisnotarequiredpartofthefinancialstatementsofthecityofdenhamsprings, Louisiana.Theinformationhasnotbenauditedbyus,andacordinglywexpresnopiniononthe information. Respectfulysubmited,

15 MANAGEMENT'SDISCUSION ANDANALYSIS

16 AsmanagementoftheCityofDenhamSprings,Louisiana,weofereadersoftheCityofDenhamSpringș Louisiana'sfinancialstatementsthisnarativeoverviewandanalysisofthefinancialactivitiesoftheCityof DenhamSprings,Louisiana,forthefiscalyearendedJune30,203.Wencouragereaderstoconsiderthe informationpresentedhereinconjunctionwithaditionalinformationthatwehavefurnishedinourleterof transmital,whichcanbefoundonpagesiv-viofthisreport. FinancialHighlights ~TheasetsoftheCityofDenharnSpringsexcededliabilitiesathecloseofthemostrecentfiscalyearby $26,460,3(netasets).Ofthisamount,$1,931,854(unrestrictednetasets)mayheusedtomethe ~Thegovernment'stotalnetasetscomparedtoprioryeartotalnetasetsof$27,803,138decreasedby government'songoingobligationstocitizensandcreditors. ~Asofthecloseofthecurentfiscalyear,theCityofDenhamSprings'sgovernmentalfundsreported $1,342,805. combinedendingfundbalancesof$3,32,23,adecreaseof$513,728incomparisonwiththeprioryear combinedendingfiredbalancesof$3,835,961.aproximatelyeighty-fivepercentofthistotalamount, ~Athendofthecurentfiscalyear,unreservedfiredbalanceforthegeneralfundwas$2,14,650,or32 $2,825,841,isavailableforspendingathegovernment'sdiscretion(unreservedfundbalance). ~TheCityofDenhamSprings'stotalong-termliabilitiesincreasedby$254,425(2percent)duringthe percentoftotalgeneralfundexpenditures. curentfiscalyear.thekeyfactorsinthisincreasewasthedecreaseinthenormaldebtservicerequirements of$230,036andthenetincreaseofenvironmentalasesmentliabilitiesof$495,050causedbythe setlementwiththelouisianadepartmentofenvironmentalquality(ldeq),asexplainedinnote17. OverviewoftheFinancialStatements ThisdiscusionandanalysisareintendedtoserveasanintroductiontotheCityofDenhamSprings'sbasicfinancial statements.thecity'sbasicfinancialstatementscomprisethrecomponents:1)government-widefinancial statements,2)fi.mdfinancialstatements,and3)notestothefinancialstatements.thisreportalsocontainsother suplementaryinformationinaditiontothebasicfinancialstatementsthemselves. Government-widetVmandalstatements.Thegovernment-widefinancialstatementsaredesignedtoprovidereaders withabroadoverviewofthecityofdenhamsprings'sfinances,inamanersimilartoaprivate-sectorbusines. TheStatementofNetAsets(ExhibitA-1)presentsinformationonaloftheCityofDenhamSprings'sasetsand liabilities,withthediferencebetwenthetworeportedasnetasets.overtime,inereasesordecreasesinetasets mayserveasausefulindicatorofwhetherthefinancialpositionofthecityofdenhamspringsisimprovingor deteriorating. TheStatementof)tctivities(ExhibitA-2)presentsinformationshowinghowthegovernment'snetasetschanged daringthemostrecentfiscalyear.alchangesinetasetsarereportedasonastheunderlyingeventgivingrise tothechangeocurs,regardlesofthetimingofrelatedcashflows.thus,revenuesandexpensesarereportedinthis statementforsomeitemsthatwilonlyresultincashflowsinfuturefiscalperiods(e.g.,uncolectedtaxesand earnedbutunusedvacationleave).

17 Bothofthegovernment-widefinancialstatementsdistinguishfunctionsoftheCityofDenhamSpringsthatare principalysuportedbytaxes,licenses,permits,finesandintergovermlentalrevenues(governmentalactivities) fromotlerfunctionsthatareintendedtorecoveralorasignificantportionoftheircoststhroughuserfesand charges(busines-typeactivities).thegovernmentalactivitiesofthecityofdenhamspringsincludegeneral government,publicsafety,highwaysandstrets,health,andcultureandrecreation.thebusines-typeactivitiesof thecityofdenhamspringsincludeagasandwaterdistributionoperation,asewerdisposaloperation,anda contractedsolidwastedisposaloperation.albusinestypeactivitiesareincludedinasingleutilityenterprise Fund. Thegovernment-widefinancialstatementsincludenotonlytheCityofDenhamSpringsitself(knownastheprimary government),butalsoalegalyseparatecitycourtofdenharnspringswardiandalegalyseparatemarshalof CityofDenhamSprings-WardIforwhichtheCityofDenhamSpringsisfinancialyacountable.Financial infomationforthesecomponentunitsisreportedseparatelyfromthefinancialinformationpresentedfortheprimary governmentitself, Thegow,~rmlaent-widefinancialstatementscanbefoundonpages19-21ofthisreport. Fundfinancialstatements.Afundisagroupingofrelatedacountsthatisusedtomaintaincontroloveresources thathavebensegregatedforspecificactivitiesorobjectives.thecityofdenhamsprings,likeotherstateandlocal

18 Thebasicproprietaryfundfinancialstatementscanbefomadonpages39-43ofthisreporṭ Notestothefinancialstatements.Thenotesprovideaditionalinformationthatisesentialtoafulunderstanding ofthedataprovidedinthegovernment-wideandfundfinancialstatements.thenotestothefinancialstatementscan befoundonpages4-80ofthisreport. Otherinformation.Inaditiontothebasicfinancialstatenaentsandacompanyingnotes,thecombiningstatement referedtoearlierinconectionwithnonmajorgovernmentalfundsarepresentedimediatelyfolowingthenotesto thefinancialstatements.combiningandindividualfundstatementsandschedulescanbefoundonpages82-83of thisreport. Government-wideFinancialAnalysis Asnotedearlier,netasetsmayserveovertimeasausefulindicatorofagoverlmaent'sfinancialposition.Inthecase ofthecityofdenhamsprings,asetsexcededliabilitiesby$26,460,3athecloseofthemostrecentfiscalyear. ByfarthelargestportionoftheCityofDenhamSprings'snetasets(53percent)reflectsitsinvestmentincapital asets(e.g.,land,buildings,machinery,andequipment),lesanyrelatedebtusedtoacquirethoseasetsthatistil outstanding.thecityofdenhamspringsusesthesecapitalasetstoprovideservicestocitizens;consequently, theseasetsarenotavailableforfuturespending.althoughthecityofdenhamsprings'sinvestmentinitscapital asetsisreportednetofrelatedebt,itshouldbenotedthatheresourcesnededtorepaythisdebtmustbeprovided fromothersources,sincethecapitalasetsthemselvescanotbeusedtoliquidatetheseliabilities.

19 ThefolowingtablereflectstheCondensedStatementofNetAsetsforJune30,203withcomparativefiguresfrom 202. CondensedStatementofNetAsets CityofDenharaSprings Jane30.203and202 GovementaI Activities Busines-Type Activ~ies Total 202 Asets;CurentandOther RestrictedAsets $3,825,80$4,18,024$ 2,481,023$ CapitalAsets TontlAsets 6,941, ,560, ,0 3,01,982$ 10,748,950 15,4, ,0 6,306,903 15,78, ,0 $7,20,06 19,265,516 2,386, ,0 29,28,243 30,014,46 2,349,460 Liabilities: CurentLiabilities Long-TermLiabilities 526,049 TotalLiabilities , , , , ,341 2,085, ,1672,013,7131,592,1612,767, ,187 1,358,072 2,21, ,256 NetAsets: InvestedinCapital Restricted AsetsNetofDebt6,941,9606,560,926 Unrestricted 2,575,2913,079, , ,762 TotalNetAsets$10,013,643$t0,129,783 $16,46,690 7,090,1277,25,602 9,356,563 $17,673,35$ 10,47,753 14,032,087 1,931, ,392 13,786, ,762 26,460,3 $27,803,138 13,526,848 Formore:detailedinfomationseExhibitA-l,theStatementofNetAsets

20 CapitalAsets Investedin NetofDebt 53% Aproximately53%($14,032,087)oftheCity'snetasetsat.rune30,203,reflectsthegovernment'sinvestmentin capitalasets(land,buildings,infrastructure,machineryandequipment)lesanyrelatedebtoacquirethoseasets. TheCityusesthesecapitalasetstoprovideservicestothecitizensofDenhamSpringsand,therefore,theseasets arenotavailableforfuturespending.anaditionalportionofthecityofdenhamsprings'snetasets(2percent) representsresourcesthataresubjectoexternalrestrictionsonhowtheymaybeused.theremainingbalanceof unrestrictednetasets45%($1,931,854)maybeusedtometgovernment'songoingobligationstocitizensand creditors. Athendofthecurentfiscalyear,theCityofDenhamSpringsisabletoreportpositivebalancesinalthre categoriesofnetasets,bothforthegovernmentasawhole,aswelasforitseparategoverumentalandbusinestypeactivities.thesamesituationheldtrueforthepriorfiscalyear. RestrictednetasetsreportedinconectionwiththeCityofDenhamSprings'busines-typeactivitiesincreased from$465,0to$535,0.the$535,0representsfundsetasidetorepaycustomersdepositsrequiredpriorto receivingservices. TheCity'snetasetsdecreasedby$1,342,805duringthecurentfiscalyear,adiferenceof$1,564,235comparedto 202.Themajorportionofthedecrease($525,0)wascausedbythesetlementwiththeLouisianaDepartmentof EnvironmentalQualityconcerninganenvironmentalasesment(Note17).Otherareasinvolvedincreasedrepair benefitcostincreases($67,984)inmostaldepartments. andmaintenancexpenses($356,875)inconectionwiththeutilityenterpriseoperationsandoveralsalaryand

21 ThecondensedstatementbelowprovidesasumaryofthechangesinetasetsfortheyearendedJune30, 203,withcomparativefiguresfrom202. ProgramRevenues: 203 Goveratleltal Activities Busines-Type Activities ChargesforServices OperatingGrantsand Contributions $ 598,81$ GeneralRevenues: Capit~dGrantsand SalesTaxes Contributions 327, ,548$4,71,41$4,823,164$5,310,32$5,359,712 I ,013 OtherTaxes OtherGrantsand 4, ContributionsnotRestricted ,193, ,6 32, , ,013 1,32, ,289 1,45,69 4,193,182 80,842 1,32,585 OtherTotalRevenues tospecificprograms 12,602 5,595_ Expenses: ,693, , ,845,6254,95,3581,867,603 8,518 42, ,602 14~!l.~3 1,689, , ,952 GeneralGov~a~.ment PuNicSafety HighwaysandStrets 1,608,505 Health 4~25,923 Culture~mdRecreation 1,415,359 1,379,014 PaymentstoComponentUnits InterestonLong-TermDebt ,672~12 1,374,390 1,608,505 32, ~98 4,025,923 1,415,359 1,379,014 94,915 98,I25 7,6451,545 27,768 3,672,912 1,374,390 GasWaterSewer 2,574,406 32, , ,032 2,36.072,574,406 94,915 SanlmtionTotalExpenses 7,206,I346,632,7296,072,290 1~19,Z ~tg, ,579 t~i9,26 979,032 2,36,07 7,6451,545 98, ,943 59,626 Increaseinlnfi-astruetureDueto 4,835,03613,278,424 t~tg~o7 867,579 Increase(Decrease)inNetAsets Ane~:afien (16, ,016_ NetAsets-BeginingofYear (1,26,65~ 160,32 (1,342,805) 68,016 1,467, ,943 21,430 NetAsets-EndofYear $10,013,643$10,129,783$164690$17,673,35$26,460,3$~ 10,129,78310, , ,5t3,03_.~327~803,13827,58lfl08

22 TotalrevenuesfromGovernmentalActivitiesincreasedby$328,141overtheprioryear ~Salestaxesincreasedby$123,107(3percent)duringtheyear.Mostofthisincreaseisatributabletoretail sales. Chargesforservicesincreasedby$62,3duringtheyear.Mostofthisincreasewasatributedtoincreased colectionsfromfinesandforfeituresand91servicefes. ~CapitalGrantsandContributionsincreasedby$107,758.Thisincreasewasbecauseofthereceiptofthe Operatingrantsandcontributionsincreasedby$31,234duringtheyear.Thisincreasewasatributedto increasedactivityinaplicationoflawenforcementgrants. ~Interestincomedeclineduringthecurentfiscalyearby$38,548.Thisdeclinewascausedentirelybythe StateGrantfortheRangeAvenuesidewalkconstruction. ~Ocupationalicenseandpermitsincreasedby$54,767.Thisincreaseisatributabletocontinued reductionininterestratesoninvestedfimds. ~Franchisefesincreasedby$63,653.Thisincreaseisatributabletocomercialgrowthandchangeincable comercialgrowthandstrongeconomicomunitysuport. ~Othersmalrevenueincreasesandecreasesamountedtoatotalof$5,405inincreasedrevenues. ~OtherGrantsandContributionsnotRestrictedbySpecificProgramsdecreasedby$81,568.Thisdecrease televisionproductsofered. wascausedbyaone-timeinsurancepremiumrebateof$95,81frompremiumspaidoverthepastyears whichwasreceivedintheprioryear.

23 TotalexpensesfronlGovernmentalActivitiesincreasedby$573,405 ~Totalsalarieschargedtogovernmentalactivitiesincreasedfrom$3,268,749to$3,51,254oranincreaseof $282,505.Thisincreasewascausedbypayincreases,theaditionofseveralemployesandtheretirement ~Relatedpayroltaxesandemployebenefitschargedtogovernmentactivitiesincreasedby$126,609.In ofseveralong-timemployes. ~Forthemostpart,theremainderofthegovernmentalactivitiesexpensesremainedatprioryearlevels. aditiontoincreasedsalaries,therewasasignificantincreasedinthefirefightersretirementandgroup insurance. AlsoduringthecurentfiscalyeartheCityanexedcertainareasaroundtheCityofDen_hamSprings.This anexationincreasedthecity'snetasetsby$68,016duetothenetvalueoftheinfrastructureanexed. Busines-typeactivities.Busines-typeactivitiesdecreasedtheCityofDenhamSprings'snetasetsby$1,26,65, acountingfor91.3percentofthetotaldeclineinthegovernment'snetasets.keyelementsofthisdecreaseareas folows. ~Operatingincomefrombusines-typeactivitiesdecreasedby$1,369,458fromtheprioryear.Thisdecrease wasmainlycausedbythesetlementofanenvironmentalasesmentof$525,0imposedbythelouisiana DepartmentofEnvironmentalQuality(Note17),theincreasedrepairandmaintenancecostsof$356,875in ~Non-operatingrevenuedecreasedby$50,741.Thisdecreasewascausedbytheuseof$546,0ofinvested conectionwithaltheutilityenterprisesystemsoperations,thereductioninthegrosprofitonaturalgas salesof$120,175,andtheincreaseinsalariesandbenefitsof$243,952. fundsinthecurentyearandthecontinuedinterestratereductionofinvestedfunds.

24

25 FinancialAnalysisoftheGovernment'sFunds Asnotedearlier,theCityofDenharnSpringsusesfundacountingtoensureandemonstratecompliancewith finance-relatedlegalrequirements. Governmentalfunds.ThefocusoftheCityofDenhamSprings'sgovernmenta(fundsistoprovideinformationon near-terainflow,andbalancesofspendableresources.suchinformationisusefulinasesingthecityofdenham Springs'sfinancingrequirements.Inparticular,unreservedfundbalancemayserveasausefulmeasureofa government'snetresourcesavailableforspendingathendofthefiscalyear. Asofthendofthecurentfiscalyear,theCityofDenhamSprings'sgovernmentalfundsreportedcombinedending fundbalancesof$3,32,23,adecreaseof$513,728incomparisonwiththeprioryear.aproximately85%ofthis totalamount($2,825,841)constitutesunreservedfundbalance,whichisavailableforspendingathegovernment's discretion.theremainderofthefiredbalanceisreservedtoindicatethatitisnotavailablefornewspendingbecause ithasalreadybencomitedtogenerateincometopayfortheperpetualcareofthemunicipalcemetery ($496,392). ThegeneralfundisthechiefoperatingfiredoftheCityofDenhamSprings.Athendofthecurentfiscalyear, totalfundbalanceofthegeneralfundof$2,14,650wasunreserved.asameasureofthegeneralfund'sliquidity,it maybeusefultocomparebothunreservedfi.mdbalancesandtotalfundbalancetototalfundexpenditures.total fundbalanceandunreservedfundbalancerepresents32percentoftotalgeneralfundexpenditures. Duringthecurentfiscalyear,thefundbalanceoftheCityofDenhamSprings'generalfundecreasedby$41,56 oranincreasedeclineovertheprioryearof$143,272.whilerevenuesincreased$230,597or3.5%,expenditures andotherfinancingusesincreasedby$373,869or5.4%.keyfactorsinthisdeclineareasfolows: ~Whilesalestaxesincreasedby$123,107,franchisetaxes$63,142,licensesandpermits$54,767,finesand forfeituresand91servicefes$28,395,othertaxesdeclinedby$3,719andmiscelaneousrevenues ~Themajorityofthexpendituresandotherfinancingusesincreasecameaboutbecauseoftheincreasein declinedby$35,095. salariesinthegeneralfundof$282,505,duetopayincreases,theaditionofseveralemployes,andthe retirementofseveralong-timemployeswhohadacumulatedlargeamountsofovertimethathadnot benpaidpriortoretirement.inadition,relatedpayroltaxesandemployebenefitsincreasedby *Equipmentpurchasesinthegeneralfundeclinedby$141,363,whiletransferstotheCapitalProjectsFund $126,609.Therewasasignificantincreaseinthefirefightersretirementandalargegroupinsurancerate increase. Thedebtservicefundhasatotalfundbalanceof$2,64,alofwhichisunreservedasthefinalpaymentonthisdebt increasedby$6,05. wasmadeinthecurentyear.thenetdecreaseinfundbalanceduringthecurentyearinthedebtservicefundof $1,578wascausedbythenormalpaymentofdebtservicexpendituresinthecurentyear. 13

26 Proprietaryfunds.TheCityofDenhamSprings'proprietaryfundsprovidethesametypeofinformationfoundin thegovernment-widefinancialstatements,butinmoredetail. Unrestrictednetasetsofthenterprisefundathendoftheyearamountedto$9,369,305.Thetotaldeclineinet asetsforthenterprisefundis$1,20,296.otherfactorsconcerningthenterprisefundhavealreadyben adresedinthediscusionofthecityofdenhamsprings'busines-typeactivities. GeneralFundBudgetaryHighlights MajordiferencesbetwentheoriginalbudgetandthefinalamendedbudgetoftheGeneralFundarebriefly sumarizedasfolows: Revenues Totalbudgetedrevenueswereincreasedby$50,105overtheoriginalbudget ~Salestaxrevenueswereincreasedby$250,0duetoriginalconservativeprojections. ~Utilitiesfranchisetaxrevenuewasincreasedby$20,0duetoincreasedresidentialandcomercial ~Cablefranchisetaxrevenuewasincreasedby$19,484duetoactualamountscolected. growth. ~Ocupationalicenseandpermitsrevenuewasincreasedby$50,125duetocomercialgrowthandvibrant ~Finesandforfeitsrevenueswereincreasedby$50,50duetotheoriginalconservativeprojections. economiconditions. ~91reimbursementfesincreasedby$20,0duetoinereaseinsalaryandbenefits. ~BackgroundcheckfesareanewsourceofrevenuetheCitycomencedreceivingthelaterpartoftheprior ~Policegrantrevenueincreasedby$39,838.ThisismostlyduetoanauditresultingfavorablyintheCity fiscalyear,thisisanincreaseof$26,0duetotheoriginalconservativeprojections. beingreimbursedforpreviouslyapliedmatchfundsto10%reimbursablegrants. Expenditures Totalbudgetedapropriationswereincreasedbyonly$10,687.Recognizedunspentbudgetdolarsweremovedto areasofbudgetednedresultinginonlyaslightincreaseoveroriginalbudget. CapitalAsetandDebtAdministration Capitalasets.TheCityofDenhamSprings'investmentincapitalasetsforitsgovernmentalandbusinestype activitiesasofjtme30,203,amountsto$2,386,340(netofacumulatedepreciation).thisinvestmentincapital asetsincludesland,buildingsandsystem,improvements,machineryandequipment,roads,highways,andrainage. ThetotalincreaseintheCityofDenhamSprings'investmentincapitalasetsforthecurentfiscalyearwasles than2%(a6percentincreaseforg~vementalactivitiesanda2percentdecreaseforbusines-typeactivities). 14

27 Majorcapitalaseteventsduringthecurentfiscalyearincludedthefolowing: RangeRoadcoridorprojectiscurentlyinthenvironmentalphase;projectcostasofiscalyearended June30,203hasreached$401,842and$283,034hasbenreimbursedbygrants. RodeoDrivedrainageprojectwascompletedasofiscalyearendedJune30,203,ataprojectcostof $395,O87 SouthRangeAvenuesidewalkprojectwascompletedasofiscalyearendedJune30,203,ataprojectcost of$134,71and$121,837hasbenreimbursedbygrants. ConstructionofanewFireStation/WaterDepamnentBuildingcomenced;totalprojectcostasofiscal yearendedjane30,203hadreached$203,158.estimatedcostofthisprojectis$650,0. PreliminaryengineringdesignforaeratorsystemtobeinstaledatheCity'sForestDelateSewerage TreatmentFacilitywascompletedatacostorS10,830.Estimatedcostofthisprojectis$30,0. CityofDenhamSprings (NetofAcumulatedDepreciation) June30,203and202 CapitalAsets Governmental Activities202 Busines-Type Activities La~d BuildingsandImprovements2,125,85 $628,671$628,671$159,575$ Total 202 GasSystem WaterSystem 2,28,365 1,048,691 2,981,756 20,56 Infrastructure SewerSystem MachineryandEquipment 1,476,842 2,405,574 1,619,121 1,89,395 10,720,438 1,084,02 159,575$ ConstructioninProgres 305, , ,92 3,126,530 21,901 2,146~21 1,03,153 1,048,691 78,246$ Total $6,941,960$6,560,926$15,4,380$ 31, ,373 2,981,756 2,250,26 10,720,438 1,084,02 78,246 2, ,958,834 3,126,530 1,03,153 2,012,494 15,78,534$2,386,340_$ 36,380_. 1,89, I95,374 AditionalinformationontheCityofDenhamSprings'capitalasetscanbefoundinote8onpages65-68ofthis report. Long-termdebt.Athendofthecurentfiscalyear,theCityofDenhamSpringshadtotalbondedebt outstandingof$614,93.thisamountisdebtsecuredso/elybyutilityservicecharges. 15

28 GeneralObligationandRevenueBonds CityofDenhamSprings Governmental June30,203and202 Activities Busines-Type Activities Total SpecialAsesmentDebt RevenueBond withgovernmentalcomitment$ $ $ 842, $ $ 13,321 $13,32~1$614,93$842,87$614,93$856,198 DuringthecurentfiscalyearțheCityofDenhamSprings'totaldebtdecreasedby$241,265(28.1percent).This resultedbecauseregulardebtpaymentsweretimelypaiḍnonewdebthasbenisueduringthefiscalyearended June30,203. AditionalinformationontheCity'slong-termdebtcanbefoundinote9onpages68-70 EconomicFactorsandNextYear'sBudgetsandRates ~TheunemploymentratefortheCityofDenhamSpringsiscurently6.7percent,whichisanincreasefroma ~TheocupancyrateoftheCity'scentralbusinesdistricthasremainedfrom97-10percentforthepast rateof6.1percentayearago.thiscomparesfavorablytothestate'saverageunemploymentrateof6.8 percentandthenationalaveragerateof6.4percent. ~Inflationarytrendsintheregioncomparefavorablytonationalindices. severalyears. AlofthesefactorswereconsideredinpreparingtheCityofDenharnSprings'budgetforthe204fiscalyear TheCityofDenhaxnSprings'generalfundreceivesaproximately61%ofitsrevenuesfromthe1-~%generalsales madusetaxleviedbythecityofdenhamsprings.becauseofnewconarnercialbusinesconstructionandtheactual revenuesbeingenerated,thecityhasconservativelybudgeteda4.3%increaseoveractualrevenuesreceivedfor the204fiscalyear. 16

29 Ofthe$941,594generalfundunreservedfundbalancebeingusedinthe204fiscalyearbudget,$320,0or34% representsamountsbeingusedforcapitalprojects,$84,340or9%representsamountsbeingusedforequipment purchasesinacordancewithcity'sfixedasetpolicy,$75,0or8%representsincreaseincontingencyreservefor potentialsetlementofpendinglawsuits,$24,316or24%represe~ltsincreasedcostofmunicipalemploye, firefighterandpoliceretirementcost,while$237,938or25%representscostoflivingsalaryincreasesalongwith relatedbenefitincreasesexcludingretirement.thelargestprojectedsalaryandbenefitincreaseisinthepolice departmentwhereanticipatedsalariesincreasedby$13,728andanticipatedovertimecostincreasedby$53,0. RequestsforInformation ThisfinancialreportisdesignedtoprovideageneraloverviewoftheCityofDenhamSprings'financesforalthose withaninterestinthegovernment'sfinances.questionsconcerninganyofthisinformationprovidedinthisreport orequestsforaditionalinformationshouldbeadresedtothecitytreasurer,c/ocityofdenharnsprings,p.o. Box1629,DenhamSprings,Louisiana

30 BASICFINANCIALSTATEMENTS

31 CITYOFDENHAMSPRINGS ExhibitA-l STATEMENTOFNETASETS JUNE PrimaryGovernment ComponentUnits Marshalof CashandCashEquivalents ASETS GovernmentalBusines-Type ActivitiesActivities Total DenhamSpringsSprings CityCourtofofDenham Ward1 WardI Investments Receivables,Net $1,212,479 Duefi'omOtherGovernments 1,52,463 DuefromComponentUnit 215,715 $30,314 InternalBalances 973,079 1,41,93 Inventories 3, $1,542,793 2,964, ,423 $28,920 PrepaidItems (12,258) RestrictedAsets: 10,730 12, ,079 3, ,01,52 87,57 40, CapitalAsets: Investments 101, ,429 LandandConstructioninProgres OtherCapitalAsets,Netof Depreciation 93, , TotalAsets 6,08, ,937 AcountsPayableandAcruedExpenses LIABILITIES $10,767,840 $18,460,403 15,253,43 21,261, $29,28, $182,5 49A83 DuetoPrimaryGovernment Non-CurentLiabilities: $49.9$890,650$1,340,649$1,367$ DueWithinOneYear DueinMoreThanOneYear 76~50 TotalLiabilities NETASETS 754,197 69, ,074 9,274 3,672 2,767, ,187 1,367 12,946 InvestmentinCapitalAsets,Netof Restrictedfor'. RelatedDebt 6,941,9607,090,12714,032,087 31,72 Unrestricted CemeteryCare 2,575,2919,356,5631,931, , ,392 TotalNetAsets 10,013,64316,46,69026,460,3 378, , ,565 49A83 TotalLiabilitiesandNetAsets$10,767,840$18A60A03$29,28,243$41,24$182,51 Theacompanyingnotesconstituteanintegralpartofthistatement. 19

32 CITYOFDENHAMSPRINGS FORTHEYEARENDEDJUNE30,203 STATEMENTOFACTIVITIES Functions/Programs ChargesforGrantsandGrantsand ProgramRevenues PrimaryGovernment: ServicesContributionsContributions OperatingCapital GovernmentalActivities: GeneralGovernment PublicSafety HighwaysandStrets $1,608,505 4,025,923 Health 1,415,359 $585,517 CultureandRecreation InterestonSpecialAsesmentCertificate 27,768 13,364 PaymentstoComponentUnits oflndebtednes 32,891 $9, ,576 15,65 Busines-TypeActivities: TotalGovernmentalActivities 7,206,134 94, , ,81 327,247 15,65 GasWater Sewer 2,574,406 Sanitation 979,032 TotalBusines-TypeActivities 1,919,26 2,569,26 59,626 1,060,128 TotalPrimaryGovernment 6,072,290 4,71~41 543, ,834 45,6 ~ $3, $5,31.0,32$327,24_.~7,$201,31 45,6 ComponentUnits: CityCourtofDenhamSprings-WardI$278,782$236,186 MarshalofCityCom'tofDenhamSprings- WardI TotalComponentUnits $598,38 319,56 GeneralRevenues: $428,763 Taxes: 192,57 $28,013$ $137, ,807 Property Sales OtherGrantsandContributionsnotRestrictedtoSpecificPrograms OcupationalandPermits InterestIncome Franchise GainonSaleofAset PaymentsfromtheCityofDentmSprings IncreaseinInfrastructureDuetoAnexation TotalGeneralRevenues NetAsets-BeginingofYear ChangeinNetAsets NetAsets-EndofYear Theacompanyingnotesconstituteanintegralpartofthistatement 20

33 Net(Expense)Revenueand ChangesinNetAsets ExhibitA-2 PrimaryGovernment Goveranental Activities $(1,59,19) (3,138,830) (1,246,30) (27,768) (16,526) (73) (94,915) (6,124,341) (6,124,341) 163,898 4,316, ,73 60,028 12,602 49,432 6,163 5~40, (16,140) 10, Busines-Type Activities Total (5,180) 81,096 (1,30,307) (60,792) (1,315,183) (1,315,183) 38,58 49,960 $(1,59,19) (3,138,830) (1246,30) (27,768) (16,526) (73) (94~15) (6,124,341) (5,180) 81,096 (1,30,307).(60z792) (1,315,183) (7,439,524) 163,898 4,316, ,73 60, ,160 9, ,518 6,028, ComponentUnits CityCourtof DenhamSprings WardI (14,583) (14,583) 5,608 10,328 46,860 62,796 (1,26,65)(1,342,805) 48,213 17,673,35 $16,46,690 27,803,138 $26, ,64 $409,87 MarshalofCity CourtofDertham Springs-WardI (17,172) (17,172) 1,070 1,53 48,05 50,678 3,

34 CITYOFDENIAMSPRINGS ExhibitB-1 JUNE CashandCashEquivalents ASETS General Capital Projects Fund Governmental Other Funds Governmental Total Funds Investments,atCost Receivables: $458, ,463 61,06 20,0 410,01,52A63 87,205$1,157,185 AdValoremTaxes,Net DuefromOtherGovernments SpecialAsesments 205, DuefromComponentUnits 820,308 7,671 TotalAsets ,71 1, , , AcountsPayable LIABILITIES $2,401,158$971,48$49,45$3,872, RetainagesPayable $78,327$162,343$ PayrolTaxesPayable 5,578 $240,670 RetirementandGroupInsurancePayable AcruedSalariesandWages 1,548 5,578 14,052 DuetoOtherFunds 143,387 14,052 1,548 DeferedRevenues OtherLiabilities ~ , , TotalLiabilities FUNDBALANCES 256, , ,818 FundBalance: ReservedforCemeteryExpenditures Unreserved,ReportedIn 496,392 GeneralFund CapitalProjectsFund DebtServiceFund 2,14, ,527 TotalFundBalances TotalLiabilitiesandFundBalances$2,401,158 2,14,650 $971N48 678,527 2,14, , ,64 678,527 2,64 49,45 $3,872,051 3,32,23 Theacompanyingnotesconstituteanintegralpartofthistatement. 2

35 CITYOFDENHAMSPRINGS BALANCESHETOTHESTATEMENTOFNET RECONCILIATIONOF JUNE30,203 FundBalances-TotalGovernmentalFunds AmountsReportedtbrGovernmental $3,32,23 ActivitiesintheStatementofNet AsetsareDiferentBecause: CapitalAsetsUsedinGovernmentalActivities arenotfinancialresourcesandarenot ReportedintheGovernmentalFunds GovernmentalCapitalAsets LesAcumulatedDepreciation $1,178,458 (4,250,384)6,928,074 Long-TermLiabilitiesarenotDueand PayableintheCurentPeriodand ThereforearenotReportedinthe GovernmentalFunds: CompensatedAbsencesPayable TheMotorPolInternalServiceFundisUsedbyManagement (301,394) tochargethecostofvehiclerepairstoindividual Funds.TheAsetsandLiabilitiesoftheInternal ServiceFundareIncludedinGovernmental ActivitiesintheStatementofNetAsets MotorPolInternalServiceFundNetAsets PriorYearNetLosAlocatedtoBusines-Type 51,98 CurentYearNetLosAlocatedtoBusines-Type Activities 6,373 NetAsetsofGovernmentalActivities Activities 6,369 64,730 Theacompanyingnotesconstituteanintegralpartofthistatement. 23

36 Rcvelnes: SpecialAsesments Taxes LicensesandPermits FinesandForfeits 91ServiceFes Interest Miscelaneous TotalRevenues CITYOFDENHAMSPRINGS GOVERNMENTALFUNDS FORTHEYEARENDEDJUNE30,203 Expenditures: Curent: GeneralGovernment PublicSafety HighwaysandStrets Health CultureandRecreation PaymentstoComponentUnits CapitalOutlay: PublicSafety HighwaysandStretS DebtService: PrincipalRetirement InterestTotalExpenditures General $5,18, ,73 268,83 201,32 30, Capital Projects Fund 8,62 152,71 Other Governmental Funds ExhibitB-3 Total Governmental Funds 2,894$ 9,285 1,0 2,894 5,18, ,73 268,83 201,32 48,75 6,830, ,393 23,179 7,015,023 1,589,671 3,863,753 1,087,427 27,768 32,891 94, A25 Exces(Deficiency)of RevenuesoverExpenditures 134,026 OtherFinancingSources(Uses): TransfersIn TransfersOut SaleofAsets TotalOtherFinancingSources(Uses) NetChangeinFundBalances FundBalancesatBeginingofYear FundBalancesatEndofYear (51,75) (545,592) (41,56) 2,56,216 $2,14, (62,290) 51,75 51, , ,590,383 3,863,753 1,087,427 27,768 32,891 94, , ,525 13, ,806 7,534,914 8,373 (519,891) (10,535) 8, , ,683 $678,527$49,056 Theacompanyingnotesconstituteanintegralpartofthistatement ,75 (51,75) 6,163 6,163 (513,728) 3,835,961 $3,32,23

37 CITYOFDENHAMSPRINGS ~N TOTHESTATEMENTOFACTIVITIES FORTHEYEARENDEDJUNE30,203 ExhibitB.4 NetChangeinFundBalances-TotalGovernmentalFunds AmountsReportedforGovernmentalActivitiesintheStatementofActivities $(513,728) arediferentbecause: GovernmentalFundsReportCapitalOutlaysasExpenditures.However,in thestatementofactivities,thecostofthoseasetsisalocatedover TheirEstimatedUsefulLivesandReportedasDepreciationExpense. CapitalOutlay DepreciationExpense (51,738) 863,179 IncreaseinInfrastructureDuetoAnexation 31,41 TheRepaymentofPrincipalonLong-TermDebtConsumesCurent 68,016 FinancialResourcesofGovernmentalFundsWhichasnoEfecton SomeExpensesReportedintheStatementofActivitiesdonotRequirethe NetAsets. 13,321 useofcurentfinancialresourcesandarenotreportedasexpenditures ingovermnemalfunds. InternalServiceFundsareUsedbyManagementoChargetheCostsof DecreaseinCompensatedAbsencesPayable 12,172 theinternalservicefundsisreportedwithgovernmentalactivities. CertainActivitiestoIndividualFunds.TheNetRevenue(Expense)of ChangeinNetAsetsofGovernmentalActivities Theacompanyingnotesconstituteanintegralpartofthistatement. 25