HECEIVED. "be;~y;~,o-u'f (Xoroxneces~,a~y copie~,frolnhds copyaridplace BACKinFIL) ,-,~ tor CITYOFKAPLAN,LOUISIANA FINANCIALREPORT JUNE30,198

Transcription

1 HECEIVED,-,~ tor CITYOFKAPLAN,LOUISIANA FINANCIALREPORT JUNE30,198 FI~COPy 0t'FICI/l. "be;~y;~,o-u'f (Xoroxneces~,a~y copie~,frolnhds copyaridplace BACKinFIL) (:!i~,, :;: rj[~l(:,:~}~th~'i:mli{;i~{'ie~koic:ou~t

2 INDEPENDENTAUDITOR'SREPORTON THEFINANCIALSTATEMENTS CONTENTS GENERALPURPOSEFINANCIALSTATEMENTS (COMBINEDSTATEMENTS-OVERVIEW) Combinedbalanceshet-alfundtypes andacountgroups Combinedstatementofrevenues,expenditures, andchangesinfundbalances-al governmentalfundtypes Combinedstatementofrevenues,expenditures, andchangesinfundbalances-budget (CAPbasis)andactual-generalandspecial revenuefundtypes- Combinedstatementsofrevenues,expenses, andchangesinretainedearnings-proprietary fundtypes Combinedstatementsofcashflows-proprietary fundtypes Notestofinancialstatements SUPLEMENTARYINFORMATION FINANCIALSTATEMENTSOFINDIVIDUALFUNDS GeneralFund: Balanceshets Statementofrevenues,expenditures,and changesinfundbalance-budget(gapbasis) andactual Statementofexpenditures-budget(GAPbasis) andactual SpecialRevenueFunds: Combiningbalanceshet Combiningstatementofrevenues,expenditures andchangesinfundbalances ExhibitSchedule Page A B C D E F-I F-2 F-3 G-I G-2 ~ecreationcentermaintenancefund- Statement:ofrevenues,expenditures,and changesinfundbalance-budget(gap basis)andactual G-3 1and and9 I0andIi 12and and and and61

3 CONTENTS SalesTaxFund- ExhibitSchedule Page Statementofrevenues,expenditures andchangesinfundbalancebudget(gapbasis)andactual C-4 62and63 ParishFireProtectionFund- Statementofrevenues,expenditures,and changesinfundbalance-budget(gap PoliceSpecial basis)andactual G-5 Statementof changesin basis)and Fundrevenues,expenditures,and fundbalance-budget(gap 64 DebtServiceFunds: actual G-6 65 Combiningbalanceshet Combiningstatementofrevenues,expenditures andchangesinfundbalances H-I H-2 68and69 70and71 CapitalProjectsFunds: Combiningbalanceshet Combiningstatementofrevenues,expenditures,and changesinfundbalance I-i EnterpriseFund: I Balanceshets Statementsofrevenues,expenses,andchanges Statementsofcashflows Scheduleofchangesinasetsrestrictedfor inretainedearnings J-I 78and79 InternalServiceFund: revenuebondebtservice J-2J-3 J-4 83and Balanceshets Statementsofrevenues,expenses,andchanges Statementsofcashflows inretainedearnings K-I AgencyFund: K-2K-3 90 Balanceshets GeneralFixedAsetsAcountGroup: Statementofchangesinasetsandliabilities L-IL Statementofchangesingeneralfixedasets M-I 96 i

4 CONTENTS GeneralLong-TermDebtAcountGroup: ExhibitSchedule Page Combiningstatementofgeneralong-termdebtN-I OTHERSUPLEMENTARYINFORMATION Scheduleofchangesingeneralong-termdebt N-2 98and9i0 Sumaryofadvaloremtaxasesmentsand Combinedscheduleofbondspayable Scheduleofinsuranceinforce(unaudited) colections REPORTONCOMPLIANCEANDONINTERNALCONTROL Scheduleofcompensationpaidtoboardmembers 104and and OVERFINANCIALREPORTINGBASEDONANAUDIT OFINANCIALSTATEMENTSPERFORMEDIN Scheduleoffindingsandquestionedcosts ACORDANCEWITHGOVERNMENTAUDITINGSTAND~ 109andIi0 Sumaryscheduleofpriorauditfindings i13andand1214 i

5 BROISARD,POCHE',LEWIS&BREAUX,L.L.P. 12East5thSt, Crowh'y,Loulsh.,n P.O,I)rawq.r307 i,bole:(318)783-0(; fo~:(318) INDEPENDENTAUDITOR'SREPORT.fay{'tre,I,A 318}9g4930 TheHonorableMayor, CityofKaplan,Louisiana andtheboardofaldermen statementsofcityofkaplan,louisianasofandfortheyearended June30,198,aslistedinthetableofcontents.Thesegeneral Wehaveauditedtheacompanyingeneralpurposef~nancial purposefinancialstatementsaretheresponsibilityofcityof Kaplan,Leuisiana'smanagement.Ouresponsibilityistoexpresan opiniononthesegeneralpurposefinancialstatementsbasedonour audit auditingstandardsandthestandardsaplicabletofinancialaudits containedingovernmentauditingstandardsisuedbythecomptroler Ẇeconductedourauditinacordancewithgeneralyacepted GeneraloftheUnitedStates.Thosestandardsrequirethatweplan andperformtheauditobtainreasonableasuranceaboutwhether thegeneralpurposefinancialstatementsarefreofmaterial mistatement.anauditincludesexamining,onatestbasis,evidence suportingtheamountsandisclosuresinthegeneralpurpose financialstatements.anauditalsoincludesasesingthe acountingprinciplesusedandsignificantestimatesmadeby management,aswelasevaluatingtheoveralgeneralpurpose financialstatementpresentation.webelievethatourauditprovides areasonablebasisforouropinion. referedtoabovepresentfairly,inalmaterialrespects,the financialpositionofcityofkaplan,louisianasofjune30,198, Inouropinion,thegeneralpurposefinancialstatements andtheresultsofitsoperationsandcashflowsofitsproprietary fundtypesfortheyearthenendedinconformitywithgeneraly aceptedacountin~principles. M,d,s,~A,.,I,.I,stlt.t,./ isuedareportdatedoctober5,198onourconsiderationofthe InacordancewithGovernmentAuditinEStandards.wehavealso C,l/hdl'ul,li,A,~,lcl,ts h;,ni,ly'4l,uisi,.~,cc,lilbd CityofKaplan'sinternalcontroloverfinancialreportingandour testofitscompliancewithcertainprovisionsoflaws,regulations, contracts,andgrants. -i-

6 TheHonorableMayor, CityofKaplan,Louisiana andtheboardofaldermen purposefinancialstatementstakenasawhole.thecombiningandindividualfundand acountgroupfinancialstatementsandscheduleslistedinthetableofcontentsas Ourauditwasconductedforthepurposeoforminganopiniononthegeneral "SuplementaryInformation"arepresentedforpurposesofaditionalanalysisandare notarequiredpartofthegeneralpurposefinancialstatementsofthecityofkaplan, Louisiana.Suchinformation,exceptfortheScheduleofInsuranceinForcemarked "unaudited",hasbensubjectedtotheauditingproceduresapliedintheauditofthe generalpurposefinancialstatementsand,inouropinion,isfairlypresentedinal materialrespectsinrelationtothegeneralpurposefinancialstatementstakenasa whole comparativepurposeswastakenfromthefinancialreportforthatyearinwhichwe expresedanunqualifiedopiniononthegeneralpurposefinancialstatementsofthe Ṫhefinancialinformationfortheprecedingyearwhichisincludedfor CityofKaplan,Louisiana. Crowley,Louisiana October

7 GENERALPURPOSEFINANCIALSTATEMENTS (COMBINEDSTATEMENTS-OVERVIEW)

8 ASETS CITYOFKAPLAN.LOUISIANA COMBINEDBALANCESHET- ALFUNDTYPESANDACOUNTGROUPS June Cashandcashequivalents Receivables(netofalowancefor uncolectibles): Grant Taxes Acounts Acruedinterest Notesreceivable Other Unbiledrevenue Duefromotherfunds Duefromothergovernments Otherasets Prepaidexpenses Restrictedasets: Cashandcashequivalents Deferedcharges Land Buildings Equipment Utilities-plantandequipment Acumulatedepreciation AmountavailableinDebtService Funds Amountavailableforotherpurposes Amountobeprovidedforetirement ofgeneralong-termdebt Totalasets GovernmentalFundTypes General $2, Special Revenue $191,870 9,0 539,389 37, Debt ServiceCapital projects $127,860$21,

9 ExhibitA Proprietary FundTvnes Fiduciary Fund EnterpriseService Internal Type AcountGrouos 13,501$168,385 AgencyFixedAsets General $405$ TermDebt General Long- (MemorandumOnlx/ Totals $525,925$696, , ,712 6, , , ] , ,31, ,806, , (4,486,929) 736, , , ,145, , , ,84 929)(4,178,095) (1,268) 127,84 (i,268) (1,268) 1,513 1,575,4951,575,4951,68,943 (Continued) -5-

10 CITYOFKAPLAN.LOUISIANA COMBINEDBALANCESHET- ALFUNDTYPESANDACOUNTGROUPS(CONTINUED) June30,198 LIABILITIESANDFUNDEQUITY Liabilities: Acountspayable Retainagepayable Acruedexpenses Duetotherfunds Other Payablefromrestrictedasets Acruedinterestpayable Customers'deposits Deferedrevenue Generalobligationbondpayable Revenuebondpayable(netof deferedamountonrefunding) Compensatedabsencespayable Instalmentpurchasespayable Bondspayable: Generalobligation Revenue(netofdeferedamounton refunding) Totaliabilities Fundequity: Contributedcapital Lesamortization Investmentingeneralfixedasets Retainedearnings: Reservedforbondretirement Reservedforbondcapitaladition andcontingency Reservedforcustomerdeposits Unreserved Fundbalances: Reservedfordebtservice Reservedforutilityimprovements Unreserved-undesignated Totalfundequity Totaliabilitiesand fundequity SeNotestoFinancialStatements GovernmentalFundTvoes SpecialDebt GeneralRevenueServiceCapital Projects $28,659$1,62$ $1,721 15, ,302 1, $27.196$2,854$215$_1~721 _js,50s ~75,50875,72% $75,72% 126,616 1,268 ~127,8419,51! i19,51z -6-

11 ExhibitA (Continued) Proprietary FundTvnes Fiduciary Fund Enterprise Internal Type AcountGroups Service AgencyFixedAsetsTermDebt General General Long- 198 Totals $ $ $35o $341, , ,295 36, , ,182 52, , ,164 2,935j1~ ,892 40,0 $5,025,878 $26,412$405$ _$i,702,1 2~935, ,18 $7,424,301 3,298,9 $6,751,780$ (525,815) $ $ 1, $ $6,751,780$6,70, , (525,815)(456,017) , ,314 27, , , , $7.102, ,23$-$i,761,214$ $I0,056, , $9,

12 CITYOFKAPLAN.LOUISIANA COMBINEDSTATEMENTOFREVENUES,EXPENDITURES ANDCHANGESINFUNDBALANCES- ALGOVERNMENTALFUNDTYPES Year~ndedJune30,19B Revenues: Taxes Licensesandpermits Intergovernmentalrevenues Chargesforservices Fines Mineraleaseandroyalties Museumreceipts Miscelaneous Totalrevenues Expenditures: Curent: Generalgoverlment Publicsafety Publicworks Stretsandbridges Cultureandrecreation Capitaloutlay Debtservice: Principalretirement Interestandfiscalcharges Totalexpenditures Exces(deficiency)ofrevenuesover expenditures Otherfinancingsources(uses) Operatingtransfersin Operatingtransfersout Exces(deficiency)ofrevenuesandother sourcesoverexpendituresandotheruses Fundbalances,begining Fundbalances,ending SeNotestoFinancialStatements -8- General $57, , ,439 28,164 2,870 _ 6,065 ~_343,53~ $596,45 691,03 530,714 23,291 $1,8414~!53 Special Revenue $458,20 56, ]635 14, ,242.1,56 i-308,129 $(1,497,914)~212,509 $1,474,0.$1,474,0 $14,0 (128,79) i_[14,~79) $(23,914)$97,730 9,42~67,9_2 $75,5~$75,~1

13 Debt Service 83,928 2,59 86,527 90, $198,935 Capital Projects $59,953 Totals (Memorandum ,752 28,164 2,870 10,639 $951,046 $610, I04,242 i0501 $2,408, $564,68 123, ,010 1,024 32,082 4,50 1, $1,253,468 $584, ,935 3, ,034 59, , $2,84971 ExhibitB $(12,408)$.(59,61)$(1,457,424)$(1,596,243) $128,79 128,79 $16,371 Ii513 $,127,84 $ $(59,61) 79,128 $.19,5,17-9- $1,616,79 (128,79) $1,48,0 $30, $98,631 $1,626,748 (143,18) $1,483,630 $(I12,613) 1,080,68 $968,05.

14 CITYOFKAPLAN,LOUISIANA COMBINEDSTATEMENTOFREVENUES,EXPENDITURES ANDCHANGESINFUNDBALANCES- BUDGET(GAPBASIS)ANDACTUAL- GENERALANDSPECIALREVENUEFUNDTYPES YearEndedJune Revenues: Taxes Licensesandpermits Intergovernmentalrevenues Chargesforservices Fines Mineraleaseandroyalties Museumreceipts Miscelaneous Totalrevenues Expenditures: Curent: Generalgovernment Publicsafety Publicworks Stretsandbridges Cultureandrecreation Capitaloutlay Debtservice: Principalretirement Interestandfiscalcharges Totalexpenditures Budget Actual $56,0 129, ,0 28,0 1,80 2,70_0 $320,95Q 605, , , $57, , ,439 28,164 2,870 _6, ,539 $596, Variance Favorable ~Unfavorable~ 1,429 4, , ,070 3,363 2,589 8, (36,414) $1,841,025~I,841,453$_(428) Exces(deficiency)ofrevenues overexpenditures $( )$(1,497,914)$2I~_61 Otherfinancingsources(uses) Operatingtransfersin Operatingtransfersout Exces(deficiency)ofrevenues andothersourcesover expendituresandotheruses Fundbalances,begining Fundbalances,ending SeNotestoFinancialStatements $1,520,075$1,474,O0$(46,075) $1,520,07~5~1,474,0~(46,075) $(23,914)$(23,914) 9,4~ 9,42

15 ExhibitC SDeJalRevenueFund Budget Actual Variance Totals-(MemorandumOnly (Unfavorable)Budget Favorable Actual(Unfavorable) Favorable Variance $45,90$458, ,320$51, ,950 (187) $50B,890 2,0 $520,638 1,635 Ii,748 (365) 26,50 515,649$ 28,0 134, ,80 28,752 19,138 3,749 4,96 4,70 28,164 $829,840 2,870 2, $864,17Z $34,37 1,070 2,98 15, , $ $610, , ,90 2,684 $401, , ,973 3,216 $308,129 1,56 (3,742) (i,56) 93,781 $2,242, , (36,414) 23, i,950 $2,149,582 1,56 $93,353 (3,742) (I,56) $i06,980$212,509$i05,529$(i,413,095)$(i,285,405)$127,690 $21,650 $(106,980) (128,630) $14,0 $(14,79) (128,79) $(7,650) $(7,79) (149) $1,541,725 $1,413,095 (128,630) $1,48,0 $1,359,21 (128,79) $(53,725) $(53,874) (149) ,730 97,730$ ,816$ ,816

16 COMBINEDSTATEMENTSOFREVENUES,EXPENSES,AND CITYOFKAPLAN.LOUISIANA ExhibitD CHANGESINRETAINEDEARNINGS- YearEndedJune30,198 PROPRIETARYFUNDTYPES Enterprise Fund Internal Service.Fund_ MemorandumOnly Operatingrevenue: 198 Totals 197 Operatingexpenses: Chargesforservices $5, $369,829$5,849,989$5,801,503 Salaries Benefitpayments: Payroltaxes $368,023 Insurance Electricity/gaspurchased Retirement 27,2 $368,023$364,909 Repairsandmaintenance Claims 90, i12,306 Utilities 2,4,61 Insurance 90, , ,06 27,2 198,898 7, ,050 27,325 Operatingsuplies 7,98 2,4,61 Oficesupliesand 65,46 90,420 Engineringfes Administrativefes expense ,98 2,50, ,351 9,194 65,46 103,080 4, Badebtexpense I0,565 Depreciation Legal 308,835 38,840 16,961 10,565 16,961 4, ,09 4, ,835 38,840 18,958 6,814 5,03 OtherTotaloperatingexpenses ~3,694,364 20,171 $328,242 7 $4,02,606 20,248 4, ,34 28,58 _.$4_,021,407 10,83 2,303 Nonoperatingrevenue Operatingincome ~ $41,587~1,827,~B~3$I,780~Q~96 (expense): Interestexpense Interestincome Bondisuecost $(303,842)$ $(265,31)$2,91 (6,217) $(303,842) $(262.40) 47,659 (6,2~!) $(351,297) _(1,457) Incomebeforeother $(295,48"/) 57,267 operatingtransfers (totalsforward) $1,520,485$4,498$1,564,98_/3$i,484,609

17 ExhibitD COMBINEDSTATEMENTSOFREVENUES,EXPENSES,AND CITYOFKAPLAN.LOUISIANA (Continued) PROPRIETARYFUNDTYPES(CONTINUED) CHANGESINRETAINEDEARNINGS- YearEndedJune Enterprise Fund Internal Service Fund (MemorandumOnly) 198 Totals Incomebeforeother 197 operatingtransfers Otheroperatingtransfers (totalsforwarded) ~i,520,485$4,498~_i,564,983$1,484,609 Operatingtransfersin Operatingtransfersout Totaloperating Netincome transfers $ (i,48,0) $(!,48,0)$6,05 $(1,48,0)$ $(I,48,0)$(i,483,629) (i,489,634) Adepreciationonfixed 32,485$4,498$76,983$ 980 asetsacquiredbygrants, entitlements,andshared revenuesexternaly restrictedforcapital acquisitionsand constructionthat reducescontributed capital Increaseinretained _69,798 69,798 52,235 Retainedearnings, earnings $102,283 4,498$146,781$53,215 Retained beginingofyear 74, endofearnings year SeNotestoFinancialStatements

18 CITYOFKAPLAN,LOUISIANA PROPRIETARYFUNDTYPES COMBINEDSTATEMENTSOFCASHFLOWS YearEndedJune30,198 CASHFLOWSFROMOPERATING ACTIVITIES Operatingincome Adjustmentstoreconcile operatingincometonet cashprovidedby operatingactivities: Depreciation Increase(decrease)in alowancefor uncolectibleacounts (Increase)decreasein acountsreceivable (Increase)decreasein prepaidexpenses (Increase)decreaseIn unbiledrevenue (Increase)decreasein acruedreceivable (Increase)decreasein duefromotherfunds (Increase)decreasein othereceivable Increase(decrease)in acountspayable Increase(decrease)in retainagespayable Increase(decrease)in acruedexpenses Increase(decrease)in duetotherfunds Inerease(decrease)in customerdeposits Increase(decrease)in deferedrevenue Enterprise.Fund Internal Service Fund ExhibitE Totals MemorandumOn]v $1,785,796$41,587$1,827,383$1,780, (17,86) (92,539) (35,024) 1,475 2,216 39,813 15,084 10,693 (17,741) 53, (20,609) (8,091) (17,86) (I13,148) (35,024) 1,475 2,216 39,813 15,084 10,693 (25,832) 53, (94,807) 274,047 2,24 6,167 (437) (1,925) (32,368) (48,534) 3,56 (42,347) 7, (15,0Q) Netcashprovidedby operatingactivities (totalsforward) $2,061,624$12,8!$2,074,5!i$2,212,394 (Continued)

19 ExhibitE CITYOFKAPLAN,LOUISIANA (Continued) COMBINEDSTATEMENTSOFCASHFLOWS(CONTINUED) PROPRIETARYFUNDTYPES YearEndedJune Enterprise Totalsforwarded Fund Internal Service Fund (MemorandumOnly Totals CASHFLOWSFROMNONCAPITAL $.2,061,624_$_.12,987.$_2,074,51_$_2,212, FINANCINGACTIVITIES Operatingtransfersfrom Operatingtransfersto otherfunds otherfunds $ $ $6,05 Netcashusedfornon- capitalfinancing (i,48,0_0) (I,48,0)(i,489,634) CASHFLOWSFROMCAPITALAND activities $(I,48,0)~_ $(i.48.0)~i,483,629) RELATEDFINANCINGACTIVITIES Procedsfromgeneral Procedsfromrevenuebond Paymentstoescrowacounto obligationbond $ Principalpaidonbonds Interestpaidonbondsand advancerefundbond i $ $ $517,089 (1,546,0) Acquisitionandconstruction otherfinancingcost (381,30) (1,546,0)(1,752,261) 1,521,7611,752,758 ofcapitalasets (232,892) (381,30)(293,80) (61,37) _.(61,37)_.(263,624) (232,892)(348,412) Netcashusedforcapitaland CASHFLOWSFROMINVESTING relatedfinancingactivities$li )$ ~_fi,29.768)~_(38,250) ACTIVITIES Netincrease(decrease)incash Interestearnedoninvestments$46.2_3$29~i~49,134$56,830 andcashequivalents(totals forward) $( )~15,798~_(64,123)$397,345

20 ExhibitE CITYOFKAPLAN,LOUISIANA (Continued) COMBINEDSTATEMENTSOFCASHFLOWS(CONTINUED) PROPRIETARYFUNDTYPES YearEndedJune Enterprise Totalsforwarded Fund Internal Service Fund 198 Totals $(679,921)$15,798$(64,123)$397, Cashandcashequivalents atbeginingofyear, (including$1,31,513and $869,562inrestricted cashatjulyi,197and Cashandcashequivalentsat 196,respectively) 1,492,181152,5871,64,76_8I~247,423 endofyear,(including $798,759and$1,31,513in restrictedcashatjune30, Noncashinvesting,capital 198and197,respectively) andfinancingactivities Contributionsofixedasets fromgovernment SeNotestoFinancialStatements

21 NOTESTOFINANCIALSTATEMENTS CITYOFKAPLAN.LOUISIANA NoteI.SumaryofSignificantAcountingPolicies TheCityofKaplanwasincorporatedin1902undertheLawrasonAct,andis administeredunderthemayorandboardofaldermenformofgovernment. ThefinancialstatementsoftheCityofKaplanhavebenpreparedin conformitywithgeneralyaceptedacountingprinciples(gap)asapliedto governmentunits.thegovernmentalacountingstandardsboard(gasb)isthe aceptedstandard-setingbodyforestablishingovernmentalacountingand financialreportingprinciples.themoresignificantofthegovernment's acountingpoliciesaredescribedbelow: A.Renortin~Entity InevaluatinghowtodefinetheCityforfinancialreportingpurposes, managementhasconsideredalpotentialcomponentunits.thedecisionto includeapotentialcomponentunitinthereportingentitywasmadeby aplyingthecriteriasetforthingap.thebasic,butnotheonly, criterionforincludingapotentialcomponentunitwithinthereporting entityisthegoverningbody'sabilitytoexerciseoversight responsibility.themostsignificantmanifestationofthisabilityis financialinterdependency.othermanifestationsoftheabilityto exerciseoversightresponsibilityinclude,butarenotlimitedto,the selectionofgoverningauthority,thedesignationofmanagement,the abilitytosignificantlyinfluenceoperationsandacountabilityfor fiscalmaters.theothercriterionusedtoevaluatepotentialcomponent unitsforinclusionorexclusionfromthereportingentityisthe existenceofspecialfinancingrelationships,regardlesofwhetherthe Cityisabletoexerciseoversightresponsibilities. Basedontheforegoingcriteria,thefolowingovernmentalorganizations arenotconsideredpartofthecityandarethusexcludedfromthe acompanyingfinancialstatementsforthereasonsnoted: TheKaplanHousingAuthoritywascharteredbytheCity,anditsBoard ofdirectorsisapointedbythemayorandboardofaldermen.however, thecity'soversightresponsibilitiesinthemanagementofoperations andfinancialacountabilityisremote. TheCityofKaplanhasnoauthorityovernorisitinvolvedwiththe recordkepingofthekaplanvolunterfiredepartment. TheKaplanCityCourtisoperatedunderthedirectorshipoftheKaplan CityJudgewhoisanelectedpublicoficial.Revenuesarederived fromcourtcostsandapropriationsfromthecity'sgeneralfund. However,theCitycanotsignificantlyinfluenceoperationsnordoesit haveresponsibilityforfiscalmanagement.

22 NOTESTOFINANCIALSTATEMENTS BTheacountsoftheCityofKaplanareorganizedonthebasisofunds andacountgroups,eachofwhichisconsideredaseparateacounting entity.theoperationsofeachfundareacountedforwithaseparate setofself-balancingacountsthatcompriseitsasets,liabilities, fundequity,revenues,andexpenditures,orexpenses,asapropriate. Governmentresourcesarealocatedtoandacountedforinindividual meansbywhichspendingactivitiesarecontroled.thevariousfundsare grouped,inthefinancialstatementsinthisreport,intosevengeneric fundsbaseduponthepurposesforwhichtheyaretobespentandthe GovernmentalFunds fundtypesandthrebroadfundcategoriesasfolows: GeneralFund TheGeneralFundisthegeneraloperatingfundoftheCity.Itisused toacountforalfinancialresourcesexceptthoserequiredtobe Specialrevenuefunds acountedforinanotherfund, Specialrevenuefundsareusedtoacountfortheprocedsofspecific revenuesources(otherthanmajorcapitalprojects)thatarelegaly restrictedtoexpendituresforspecifiedpurposes. Debtservicefundsareusedtoacountfortheacumulationof resourcesfor,andthepaymentof,generallong-termdebtprincipal, Capitalprojectsfunds interest,andrelatedcosts. Gapitalprojectsfundsareusedtoacountforfinancialresourcesto beusedfortheacquisitionorconstructionofmajorcapitalfacilities (otherthanthosefinancedbyproprietaryfunds),

23 NOTESTOFINANCIALSTATEMENTS ProDrietsrvFunds Enterprisefunds Enterprisefundsareusedtoacountforoperations(a)thatare financedandoperatedinamanersimilartoprivatebusines enterprises-wheretheintentofthegoverningbodyisthathecosts (expenses,includingdepreciation)ofprovidingodsorservicesto thegeneralpubliconacontinuingbasisbefinancedorecovered primarilythroughusercharges;or(b)wherethegoverningbodyhas decidedthatperiodicdeterminationofrevenuesearned,expenses incured,and/ornetincomeisapropriateforcapitalmaintenance, Internalservicefund publicpolicy,managementcontrol,acountability,orotherpurposes. Internalservicefundsareusedtoacountforthefinancingonacost: reimbursementbasisofgodsorservicesprovidedbyonedepartmentor agencytotherdepartmentsoragencieswithinthesamegovernmentor ProprietaryFundsarereportedinacordancewithGASBStatementNo.20, tothergovernmentsornot-for-profitorganizations, AcountingandFinancialReportingforProprietaryFundsandother GovernmentalEntitiesthatuseProprietaryFundAcounting.This standardrequiresthatalaplicablegasbpronouncements,financial AcountingStandardsBoard(FASB)StatementsandInterpretations, AcountingPrinciplesBoard(APB)Opinions,andAcountingResearch Buletins(ARBs)isuedonorbeforeNovember30,1989beapliedto proprietaryactivitiesunlesthey(fasbstatementsandinterpretations, ARBOpinions,andARBs)conflictwithorcontradictGASBpronouncements. GASBStatementNo.20alsostatesthatforproprietaryactivities, managementmayelectoaplyalfasbstatementsandinterpretations isuedafternovember30,1989,exceptforthosethatconflictwithor contradictgasbpronouncements.proprietaryactivitiesunderthecontrol ofthecitywilnotelectoaplyfasbstatementsandinterpretations isuedafternovember30,1989,unlestheyareadoptedbygasb. FiduciaryFunds Agencyfunds: TrustandagencyfundsareusedtoacountforasetsheldbytheCity inatrustecapacityorasanagentforindividuals,private organizations,othergovernments,and/orotherfunds.agencyfundsare custodialinnature(asetsequalliabilities)anddonotinvolve measurementofresultsofoperations.

24 NOTESTOFINANCIALSTATEMENTS AcountGroups Generalfixedasetsacountgroup Thegeneralfixedasetsacountgroupisusedtoacountforfixed Generalong-termdebtacountgroup asetsnotacountedforinproprietyfunds. Thegeneralong-termdebtacount long-termdebtandcertainother C.BasisofAcountinm liabilitiesofproprietyfunds. groupisusedtoacountforgeneral liabilitiesthatarenotspecific Basisofacountingreferstowhenrevenuesandexpendituresor expensesarerecognizedintheacountsandreportedinthefinancial statements.basisofacountingrelatestothetimingofthe measurementsmade,regardlesofthemeasurementfocusaplied. Algovernmentalfundsandagencyfundsareacountedforusingthe modifiedacrualbasisofacounting.theirevenuesarerecognized whentheybecomemeasurableandavailableasnetcurentasets. Expendituresaregeneralyrecognizedunderthemodifiedacrualbasis ofacountingwhentherelatedfundliabilityisincured,excepthat principalandinterestongeneralong-termdebtisrecognizedasan expenditurewhendue. Thoserevenuesusceptibletoacrualaretaxes,interestrevenueand chargesforservices.fines,permits,andlicensesarenotsusceptible toacrualbecausegeneralytheyarenotmeasureduntilreceivedin cash. Purchasesofoperatingsupliesareregardedasexpendituresathe timepurchased,andinventoriesofsuchsuplies(ifany)arenot recordedasasetsathecloseofthefiscalyear. Theproprietaryfundsareacountedforusingtheacrualbasis acountingwherebyrevenuesarerecognizedwhentheyarearned D.Asets.LiabilitiesandEauitv expensesarerecognizedwhenincured. ofand Cash,cashequivalentsandinvestments Cashincludesamountsindemand investmentswithamaturitydate acquiredbythegovernment. depositsaswelasshort-term withinthremonthsofthedate - 20-

25 NOTESTOFINANCIALSTATEMENTS Forpurposesofreportingcashflows depositacountbalances,repurchase depositswithanoriginalmaturityof thecityconsidersaldemand equivalents. agrements,andcertificatesof thremonthsorlestobecash AlrepurchaseagrementsoutstandingatJune30,198haveanoriginal maturityofthremonthsorlesandarestatedatcostwhich Restrictedasets aproximatesmarket. CertainprocedsoftheCity'senterprisefundrevenuebondsand generalobligationbondaswelascertainresourcesetasidefor theirepayment,areclasifiedasrestrictedasetsonthebalance shetbecausetheiruseislimitedbyaplicablebondcovenants.the "bondconstruction"acountisusedtoreporthoseprocedsofgeneral obligationbondisuancethatarerestrictedforuseinconstruction. The"bondsinkingfund"acountisusedtosegregateresources acumulatedfordebtservicepaymentsoverthenextwelvemonths.the "bondreservefund"acountisusedtoreportresourcesetasideto makeupotentialfuturedeficienciesinthebondsinkingfundacount. The"bondcapitaladitionandcontingency"acountisusedtoreport resourcesetasidetometunexpectedcontingenciesortofundaset Fixedasets renewalsandreplacements. FixedasetsusedingovernmentalfundtypesoftheCityarerecorded inthegenera]fixedasetsacountgroupatcostorestimated historicalcostifpurchasedorconstructed.donatedfixedasetsare recordedatheirestimatedfairvalueathedateofdonation.asets inthegeneralfixedasetsacountgrouparenotdepreciated. Interestincureduringconstructionisnotcapitalizedongeneral fixedasets. Publicdomain(infrastructure)generalfixedasets(e.g.,roads, bridges,sidewalksandotherasetsthatareimovableandofvalue onlytothecity)arenotcapitalized. Thecostofnormalmaintenanceandrepairsthatdonotadtothevalue oftheasetormaterialyextendasets'livesarenotincludedinthe generalfixedasetsacountgrouporcapitalizedintheproprietary funds. Property,plantandequipmentinthe recordedatcost.property,plant proprietaryfundtypeoperationsare valueathedateofdonation. proprietaryfundsofthecityare recordedatheirestimatedfair andequipmentdonatedtothese

26 NOTESTOFINANCIALSTATEMENTS Majoroutlaysforcapitalasetsandimprovementsarecapitalizedin proprietaryfundsasprojectsareconstructed.interestincured duringtheconstructionphaseofproprietaryfundfixedasetsis reflectedinthecapitalizedvalueoftheasetconstructed,netof interestearnedontheinvestedprocedsoverthesameperiod. Property,plantandequipmentaredepreciatedintheproprietaryfund ofthecityusingthestraightlinemethodoverthefolowingestimated usefulives: Asets Buildings Years Buildingimprovements Systeminfrastructure Vehicles Oficequipment 2O50 Computerequipment 5 EfectiveJulyi,195,theCityhaselectedtoaplyGASB's Codification,SectionG60.I16whichalowsenterprisefundstoclose outdepreciationexpenserecognizedonasetscontributedby governmentsoutsidethefinancialreportingentity(i.e.,grants, entitlements,orsharedrevenues)tocontributedcapitalratherthanto Compensatedabsences retainedearnings. ItistheCity'spolicytopermitemployestoacumulatearnedbut unusedvacationandsickleavebenefits.sickleavevestonlyupon retirement,thereforeanacrualisdoneonlywhenanemployenears retirement.amountsareacruedwhenincuredinproprietaryfundsand reportedasafundliability.amountsthatareexpectedtobe liquidatedwithexpendableavailablefinancialresourcesisreportedas anexpenditureandafundliabilityofthegovernmentalfundthatwil payit.amountsnotexpectedtobeliquidatedwithexpendable availablefinancialresourcesarereportedinthegeneralong-term Long-termobligations debtacountgroup. TheCityreportslong-termdebtofgovernmentalfundsatfacevaluein thegeneralong-termdebtacountgroup.certainothergovernmental fundobligationsnotexpectedtobefinancedwithcurentavailable financialresourcesarealsoreportedinthegeneralong-termdebt acountgroup.long-termdebtandotherobligationsfinancedby proprietaryfundsarereportedasliabilitiesintheapropriatefunds. -2-

27 NOTESTOFINANCIALSTATEMENTS Forgovernmentalfundtypes,bondpremiumsandiscounts,aswelas isuancecosts,arerecognizedduringthecurentperiod.bond procedsarereportedasanotherfinancingsourcenetofthe aplicablepremiumordiscount.isuancecosts,evenifwitheldfrom theactualnetprocedsreceived,arereportedasdebtservice expenditures.forproprietaryfundtypes,bondpremiumsandiscounts, aswelasisuancecosts,aredeferedandamortizedoverthelifeof thebondsusingthestraightlinemethod.bondspayablearereported netoftheaplicablebondpremiumordiscount.isuancecostsare Fundequity reportedasdeferedcharges. Reservationsoffundbalancerepresentamountsthatarenot apropriableorarelegalysegregatedforaspecificpurpose. Reservationsofretainedearningsarelimitedtoutsidethird-party restrictions.designationsofundbalancerepresenttentative managementplansthataresubjectochange.theproprietaryfund's eontrihutedcapitalrepresentsequityacquiredthroughcapitalgrants andcapitalcontributionsfromotherfunds. Comparativedata~reclasification Comparativetotaldatafortheprioryearhavebenpresentedin selectedsectionsoftheacompanyingfinancialstatementsinorderto provldeanunderstandingofchangesinthecity'sfinancialposition andoperations,however,comparative(i.e.,presentationofprioryear totalsbyfundtype)datahavenotbenpresentedineachofthe statementssincetheirinclusionwouldmakethestatementsunduly complexandificultoread.also,certainamountspresentedinthe prioryeardatahavebenreclasifiedinordertobeconsistentwith Memorandumonly-totalcolumns thecurentyear'spresentation. Totalcolumnsonthegeneralpurposefinancialstatementsarecaptioned as"memorandumonly"becausetheydonotrepresentconsolidated financialinformationandarepresentedonlytofacilitatefinancial analysis.thecolumnsdonotpresentinformationthatreflects financialposition,resultsofoperations,orcashflowsinacordance withgeneralyaceptedacountingprinciples.interfundeliminations havenotbenmadeintheagregationofthisdata. -23-

28 NOTESTOFINANCIALSTATEMENTS Note2.Stewardship,ComplianceandAcountability Budgetaryinformation TheCityfolowstheseproceduresinestablishingthebudgetarydata reflectedinthefinancialstatements. I.PriortoJulyi,theMayorsubmits operatingbudgetforthensuing includesproposedexpendituresand totheboardofaldermenaproposed fiscalyear.theoperatingbudget 2.PublichearingsareconductedatheCityHaltobtaintaxpayer themeansofinancingthem. 3.Thebudgetislegalyenactedthroughpasageofaresolution coments. 4.BudgetsfortheGeneralandSpecialRevenueFundsareadoptedona 5.Thebudgetisusedasatoltocontrolexpendituresatheindividual basisconsistentwithgeneralyaceptedacountingprinciples(gap). Albudgetapropriationslapseatyear-end.Thebudgetpresentedisas fundlevel. amendedbytheboardofaldermen.expendituresmaynotlegalyexced budgetedapropriationsbymorethan5%atheindividualfundlevel. Note3.Cash,CashEquivalentsandInvestments Foreportingpurposes,cashandcashequivalentsincludedemandeposits, certificatesofdepositsandrepurchaseagrementswithanoriginalmaturity of90daysorles. TheCityisauthorizedbyLRS39: and3:295toinvestinthe folowing: UnitedStatesTreasuryBonds i234 UnitedStatesTreasuryNotes UnitedStatesTreasuryBils ObligationsofU.S.GovernmentAgencies,includingFederalHomeLoan 5 Bankbonds,GovernmentNationalMortgageAsociationbonds,oravariety of"federalfarmcredit"bonds. Fulycolateralizedcertificatesofdepositsisuedbyqualified 6 comercialbanksandsavingsandloanasociationslocatedwithinthe Fulycolateralizedrepurchaseagrements. StateofLouisiana. -24-

29 NOTESTOFINANCIALSTATEMENTS Fulycolateralizedinterest-bearingcheckingacounts. MutualorTrustFundinstitutionswhichareregisteredwiththe SecuritiesandExchangeComisionundertheSecurityActof193andthe ]investmentactof1940,andwhichaveunderlyinginvestmentsconsisting 9.Anyotherinvestmentalowedbystatestatuteforlocalgovernments. solelyofandlimitedtosecuritiesoftheunitedstatesgovernmentor itsagencies. TheCity'sdepositsatJune30,198weresecuredasfolows Bank Checking SavingsandCD's Repurchaseagrements $67,384 Balance InsuranceBalance FDIC Securitiespledgedandheld Total 631,454 30,0 $20,0$467,384 Uninsure ~d 30,0 $1,328,838~230,0$1,098, ,454 bythecustodialbankin thebank'sname ExcesofFDICinsurance (CategoryI) 2,297,23Z pluspledgedsecurities overcashpluscash Eventhoughthepledgedsecuritiesareconsidereduncolateralized(Category equivalents 39:].29imposesastatutoryrequirementonthecustodialbanktoadvertise andselthepledgedsecuritieswithini0daysofbeingnotifiedbythecity I)undertheprovisionsofGASBStatement3,LouisianaRevisedStatute that:thefiscalagenthasfailedtopaydepositedfundsupondemand. 25-

30 NOTESTOFINANCIALSTATEMENTS Note4.Receivables ReceivablesatJune30,198,includingtheaplicablealowancesfor uncolectibleacounts,areasfolows: Receivables: General Special Revenue Service Debt Grant Taxes Acounts Note Interest Grosreceivables Other 239 $3,78 $9,0 239 Les:Alowanceforuncolectibles Totalnetreceivables -26-

31 NOTESTOFINANCIALSTATEMENTS Capital~ ProjectsEnterpriseInternal Service Total 739,84 4,586 52,260 $9,0 $750,836 6, $52,260 $816,13 6,36 $ ,715 $585,39 230,715 _~8-27-

32 NOTESTOFINANCIALSTATEMENTS Note5.FixedAsets Asumaryofchangesingeneralfixedasetsacountgroupisasfolows Balance Julyi, Land Buildings Equipment $i14, AditionsDeletions Total $I,694, , $ June30, Balance 198 $87,065 32, $ $I14,547 $20,0i~761,21_4 910, AsumaryofproprietaryfundfixedasetsatJune30,198isasfolows Buildingsandsystems Machineryandequipment Vehicles $13,981,017$4,291,465$9,689,52 CostAcumulated DepreciationNet Constructioninprogres-sewer 137,987 Constructioninprogres-water plant ,637 45,350 improvements 549, Totals ~14,806,419 2, $i0,319,490 2,78 o28-

33 NOTESTOFINANCIALSTATEMENTS Note6.InterfundReceivablesandPayables ThecompositionofinterfundreceivableandpayablebalancesasofJune isasfolows: ReceivableFund General Payablefund Utilities Amount RecreationCenterMaintenance Policespecial SalesTax Payrol Utilities $36, RecreationCenterMaintenance Utilities General 306 Total 192CertificateofIndebtednes Note7.Leases Operatingleases TheCityleasesa195FordCrownVictoriawhichexpiresinSeptember 19.Totalexpendituresfortheaboveleasewere$5,275fortheyear endedjune30,198.thefutureminimumleasepaymentsforthisleaseare asfolows: YearEndin~June30 19 Amount 20 Total $5,253 $6,565 1,

34 NOTESTOFINANCIALSTATEMENTS Capitaleases TheCityhasenteredintoaleaseagrementforfinancingtheacquisition ofajohndere540tractorandanibmas/40~computersystemunderlease agrements.theseleaseagrementsqualifyascapitalleasesfor acountingpurposesand,therefore,havebenrecordedathepresent valueofthefutureminimumleasepaymentsasoftheinceptiondateinthe generalfixedasetsacountgroup. Theasetsacquiredthroughcapitaleasesareasfolows FixedAsets General JohnDere540tractor IBMAS/40computersystem Thefutureminimumleaseobligations Total $21,152 26,1~ minimumleasepaymentsasofjune30 andthenetpresentvalueofthese $47, wereasfolows GeneralLone-TermDebt YearEndin~June30 19-Totalminimumleasepayments Tractor Dere John Computer AS/40 Les:Amountrepresentinginterest $4,357 IBM Presentvalueofminimumleasepayments (168) $5,916 $5,758 (15a) TheaboveIBMAS/40computerleaseincludes$15,361formaintenance agrements. -30-

35 NOTESTOFINANCIALSTATEMENTS Note8.Long-TermBondedDebt Thefolowingisasumaryoflong-termbondedebtransactionsoftheCity ofkaplanfortheyearendedjune30,19b: Long-term atjuneobligations Aditions: Bondsisued Deductions: Bondsretired Long-termobligations atjune General Obligat~on Revenue $2,30,0$3,626,891 1,413,50 130~01,740,435 $2,170,0$3,30106 Total $5,926,891 1,413,50 1,870,435 BondspayableatJune30,198arecomposedofthefolowingindividual isues: Generalobligationbonds(securedbyadvaloremtaxasesmentsand procedsof1%salesandusetax,ande~cesanualrevenues)aredirect obligationsandpledgethefulfaithandcreditofthecity.general obligationbondshavebenisuedforbothgeneralgovernmentand proprietaryactivities.thebondsarereportedintheproprietaryfundsif theyarexpectedtoberepaidfromproprietaryfundrevenues. General~overnment CertificatesofIndebtednes,Series192, dated ,originalisueof$680,0 retiredanualyinvariousinstalment amounts,interestratesfrom4.5%to6.25% finalmaturity RefundingBonds,Series192,dated , originalisueof$50,0retiredanualy invariousinstalmentamountsbeginingin 203,interestratesfrom6.35%to6.65%, finalmaturity12-i-207 Generalobligationbonds,SeriesAof195, dated8-1-95,originalisueof$50,0 retiredanualyinvariousinstalment amounts,interestratesfrom5.0%to9.0% finalmaturity Subtotalforward $385, $1,405,0

36 NOTESTOFINANCIALSTATEMENTS Subtotalforwarded Generalobligationbonds,SeriesBof195, dated8-1-95,originalisueof$30,0 retiredanualyinvariousinstalment amounts,interestratesfrom5.0%to9.0% finalmaturity Totalgeneralgovernment Enterprisefund Certificateofindebtednes,Series197,dated ,isueof$525,0,retiredinvarious anualinstalments,interestrateof5.1%to6.0% finalmaturity Totalgeneralobligationbonds $1,405,0 280 $1,685, $2,170,0 Anualdebtservicerequirementstomaturityforgeneralobligationbonds includinginterestof$927,408areasfolows: YearEnding June Thereafter Total Enterprise Fund $72,35 69,95 67,610 70,180 72, $634,750 Generalong-term DebtAcountGrOUD $197, ,5 193, ,358 18,541 1,496,386 $2,462,658 Total $269, ,50 261, , ,971 1,78,586 $3,097,408 RevenuebondsareobligationswheretheCitypledgesincomederivedfrom theacquiredorconstructedasetstopaydebtservice, Series190,dated4-1-90,isueof$2,50,0 retiredinanualinstalments,interest ratesof6.8%to7.75%,finalmaturityof ,advancerefundedon4-1-97of $1,645,0 Series194,dated4-1-94,isueof$i0,0 retiredinanualinstalments,interestrate of5.40%,finalmaturityof Subtotalforward -32- $130,0 790 $209,0

37 NOTESTOFINANCIALSTATEMENTS Subtotalforwarded Series197refunding,dated4-1-97,isueof $1,790,0,retiredinanualinstalments, interestrateof5.0%,finalmaturityof Les:Deferedamountonrefunding Series198refunding,dated5-I-98,isueof $1,520,0,retiredinanualinstalments, interestrateof6.95%,finalmaturityof 4-i-204 Les;Deferedamountonrefunding Totalrevenuebonds Theanualrequirementstoservicethe 30,198,includinginterestpayments YearEnding June30, Thereafter Total AdvanceRefunding Amount $595,23 616, , , ,273,392 $4,340,768 $209,0 1,765,0 (90,501) (i03,a93) revenuebondebtoutstandingatjune of$846,768areasfolows: OnAprili,197,theCityisued$1,790,0ofUtilitiesRevenueRefunding Bonds,Series197,withaninterestrateof5.0%forthepurposeof advancerefunding$1,645,0ofoutstandingutilitiesrevenuebondsseries 190whichmatureAprilI,20toAprilI,205,bearinginterestof7.5% to7.75%.theprocedsof$1,752,261(afterpaymentof$37,739inisuance costandfes)weredepositedintoanirevocabletrustwithanescrow agentodefeasetheutilitiesrevenuebonds,series190onaprili,19 ata1.5%redemptionpremium.asaresult,theutilitiesrevenuebonds, Series190whichmatureAprili,20toAprili,205,areconsideredto bedefeasedandtheliabilityhasbenremovedfromthecity'sbokṣthis advancerefundingwasundertakentoreducetotaldebtservicepaymentsover thenext8yearsby$19,417andresultedinaneconomicgain(diference betwenthepresentvaluesofthedebtservicepaymentsontheoldandnew debt)of$98,697.thereaequisitionpricexcededthenetcaryingamount oftheoldebtby$107,261.thisamountisbeingnetedagainsthenew debtandamortizedoverthenewdebt'slfe. -3-

38 NOTESTOFINANCIALSTATEMENTS OnMayI,198,theCityisued$1,520,0ofUtilitiesRevenueRefunding Bonds,Series198,withaninterestrateof6.95%forthepurposeof advancerefunding$1,415,50ofoutstandingutilitiesrevenuebondsseries 1989whichmatureAprilI,19toAprilI,204,bearinginterestof costfesandeposits)and$26,0transferedfromthesinkingfundwere depositedintoanirevocabletrustwithanescrowagenttodefeasethe 1.0%.Theprocedsof$i,495,054(afterpaymentof$24,946inisuance UtilitiesRevenueBonds,Series1989onAprili,19ata2%redemption premium.asaresult,theutilitiesrevenuebonds,series1989which matureaprili,19toaprili,204,areconsideredtobedefeasedand theliabilityhasbenremovedfromthecity'sboks.thisadvance refundingwasundertakentoreducetotaldebtservicepaymentsoverthe next6yearsby$60,601andresultedinaneconomicgain(diference betwenthepresentvaluesofthedebtservicepaymentsontheoldandnew debt)of$51,474.thereacquisitionpricexcededthenetcaryingamount oftheoldebtby$106,450.thisamountisbeingnetedagainsthenew BondCovenants debtandamortizedoverthenewdebt'slife. Thevariousbondindenturesidentifiedabovecontainsignificant limitationsandrestrictionsonanualdebtservicerequirements, maintenanceofandflowofmoniesthroughvariousrestrictedacounts, minimumamountstobemaintainedinvariousinkingfunds,andminimum revenuebondcoverages.thecityisubstantialyincompliancewithal suchsignificantlimitationsandrestrictionsexceptfortheutility CapitalAditionandContingencyAcountwhichwasunderfundedby$15,292 atjune Note9.ContributedCapital ThechangesintheCity'scontributedcapitalacountforthenterprisefund areasfolows: Beginingbalance,contributedcapital Contributingsources: $6,70,736 Salestaxfund Endingbalance,contributedcapital 192constructionfund 40,450 10,594 EfectiveJulyi,195,theCityhaselectedtoaplyGASB'sCodification, SectionG60.i16whichalowsenterprisefundstocloseoutdepreciation expenserecognizedonasetscontributedbygovernmentsoutsidethefinancial reportingentity(i.e.,grants,entitlements,orsharedrevenues)to contributedcapitalratherthantoretainedearnings. -34-

39 Note10.RiskManagement NOTESTOFINANCIALSTATEMENTS EfectiveAugusti,190,theCityhasestablishedariskmanagementprogram foritsgrouphealthandlifeinsurancecoverage,andaceountsforitinthe GroupInsuranceFund.Thisprogramprovidesemployesandtheirdependents healthbenefitsupto$i,0,0inalifetimemaximum.thecitypurchases comercialinsuranceforclaimsinexcesof$25,0perindividualperyear ofcoverageprovidedbytheprogram. Duringthefiscalyear191,the StatementNumberI0,"Acountingand andrelatedinsuranceisues." ReconciliationofClaimsLiabilities CityadoptedtheprovisionsofGASB FinancialReportingforRiskFinancing Asrequiredbythestatement,a isshownbelow.alfundsofthecity participateintheprogramandmakepaymentstothegroupinsurancefund basedonpremiumsnededtopaypriorandcurentyearclaims,administrative cost,andcomercialinsurancepremiums.theclaimsliabilityof$26,412 reportedinthefundatjune30,198,isbasedontherequirementsofgasb StatementNumberi0,whichrequiresthataliabilityforclaimsbereported ifinformationpriortotheisuanceofthefinancialstatementsindicates thatitisprobablethataliabilityhasbenincuredathedateofthe financialstatementsandtheamountoftheloscanbereasonablyestimated. ReconciliationofClaimsLiabilities UnpaidclaimsatJune Claimsincured Claimpayments UnpaidclaimsatJune 30,197 30,198 NoteI.DedicationofSalesTaxProceds $34, ,68 (373,79) $26,412 Procedsofthe1%salesandusetaxarededicatedtothefolowingpurposes I.Constructing,acquiring,extendingand/orimprovingpublicparksand recreationalfacilities,drainagefacilities,stretsandstretlighting facilities,sewersandseweragedisposalworks,waterworks,naturalgas facilities,electricaldistributionfacilities,publicbuildings (includingajailand/orfiredepartmentstationsandequipment)~ purchasingandacquiringequipmentandfurnishingsfortheaforesaid publicworks,buildings,improvementsandfacilities,titletowhich improvementshalbeinthepublic. 2.Payingprincipalandinterestonanybondedorfundedindebtednesof saidcityorforanyoneormoreofsaidpurposes,andsuchtaxtobe subjecttofundingintobondsbysaid SubPartD,PartI,Chapter6,Title3 of Cityinthemanerauthorizedby ofthelouisianarevisedstatutes

40 NOTESTOFINANCIALSTATEMENTS Procedsofthesalesandusetaxhavebenpledgedandedicatedtothe retirementofrefundingbonds,series192,dateddecemberi,192,and CertificatesofIndebtednes.Series192.datedDecemberi.192. Note12.EnterpriseFundOperations OperationsoftheCityofKaplanUtilitySystemconsistofelectricandgas distributionsystemsandofwaterandsewerutilities.thecitypurchases electricityandgasforesaleinitsdistributionsystemsfromentergyand MagnumGasMarketingCompany,respectively. PlantandequipmentacquiredbytheUtilitiesFundinyearspriorto1975 havenotbensegregatedontheacountingrecordsinsuchamanerthathe actualinvestmentineachoftheoperatingutilitysystemscanbe determined.forfinancialstatementpurposes,depreciationonsuchplant andequipmentduringthecurentfiscalyearhasbenalocatedtothe individualoperatingdepartmentsontheratiofgrosutilitysalesineach department.depreciationonaditionstoplantandequipmentsince1975 havebenchargedirectlytotheaplicabledepartment.otheroperating expenseswhichcanotbeidentifiedasaplicabletoasingledepartment havebenalocatedonthebasisofgrosutilitysalesor,ifasociated withpayrol,onthebasisofpayrolcostsintheindividualdepartments. Operatingresultsoftheindividualutilitieswereasfolows ElectricUtility GasUtility WaterUtility SewerageUtility Year Ended June30, Charges for ServicesOperating Expenses $3,796,25$2,398 $3,736,194$2,36 Operating Income 053$1,398, $1,39,791 $81,48$616,82$264,606 $878,728$637,367$241,361 $48,89$396,790$92,109 $473,25$395,413$7,842 $313,548$282,639$30,909 $32,757$259,357$63,40 AtJune30,198,servicewasprovidedtothefolowingnumberofcustomers Electricity GasWater Sewerage 2,18 1,919 2, Customers Customers Customers Customers

41 NOTESTOFINANCIALSTATEMENTS Curentrateschargedtocustomersfortheseserviceshavebeninefect sincethefolowingdates: Electricrates Gasrates Seweragerates Waterates December,190 May,1987 December1,196 January,198 Note13.RestrictedAsets-EnterpriseFund RestrictedasetswereaplicabletothefolowingatJune30 Bondsinkingfundacount Bondreservefundacount Bondcapitaladitions andcontingenciesacount Bondconstructionacount Customer'sdepositacount Note14.JudgementOutstanding $157, ,417 5, $798,759 $184, , , $1,31,513 InAugustof1973,ajudgementintheamountof$189,540,plusinterest,was renderedinfavoroftheplaintifinthecaseofleroyj.romero,etalvs. thecityofkaplan.theunitedstatesfidelity&guarantyinsurance Company,theCity'sinsurer,haspaiditspolicylimitsof$i0,0plus interest,leavinganoutstandingjudgementagainsthecityofkaplanfor $89,540,pluslegalinterest. OnJanuary3,194,theCityhasenteredintoaconsentjudgementawarding WashingtonNationalInsuranceCompany$25,98,plusatorneyfesinthe amountof$6,0,pluslegalinterestfrommayi,190untilpaidforsums dueonthegrouphealthandacidentinsurancepolicy. IntheopinionoftheCity'slegalcounsel,suchjudgementsoperateasan encumbranceagainsthecity,althoughitisjudicialyunenforceablebased onlegalprecedentswhichaveheldthatpropertywhichisownedbythe publicandisbeingusedforpublicpurposesisexemptfromseizure. However,legalcounselfurtherstatesthatthepropertyownedbya municipality,butwhichisbeingusedinanon-governmentalprofit-making way,maybeseized. Asaresultofthislegalopinion,noprovisionshavebenmadeinthe financialstatementsfortheamountoftheoutstandingjudgements.

42 NOTESTOFINANCIALSTATEMENTS TheCityisalsoadefendantinvariousotherlawsuits;howevermanagement andcounselforthecityofkaplanareunabletoreasonablyestimateathis timetheamountofliabilityinexcesofinsurancecoveragewhichmaybe incuredifadversedecisionsarerendered. Note15.AdValoremTaxes propertywithasesedvaluationstotaling$13,464,930andwerededicatedas FortheyearendedJune30,198,taxesof10.29milswereleviedon folows: Generalcorporatepurposes Totaltaxesleviedandcolectedwere$138,5 Debtretirement 4.18mils 6.1mils TaxesareleviedonSeptemberiandareduebyDecember31.Taxesatachas anenforceablelienonpropertyasofjanuaryi. Note16,CompensatedAbsences bepaidtothemploye.noamountsarepaidforterminations.sincesick EmployesoftheCityearnsickleaveatherateofonedaypermonth,up toamaximumof120days.onlyuponretirementwilunusedsickleavedays nearsretirement.asofjune30,198,anacrualof$23,797for leavedaysdonotvestandacumulatedsickdaystobepaiduponretirement canotreasonablybestimated,anacrualisdoneonlywhenanemploye acumulatedsickleavewasrecorded.theamountaplicabletothe EnterpriseFundof$16,63hasbenrecordedasafundliabilityandthe amountaplicabletothegovernmentalfundsof$7,164hasbenrecordedin thegeneralong-termdebtacountgroup. EmployesoftheCityearnvacationleavefromthebeginingofemployment AsofJune30,198,unpaidacumulatedvacationleavewas$27,17.The andisbaseduponthenumberofyearsoful-timeserviceandvariesfrom 5daysto15days.Vacationleavecanotcaryovertothefolowingyear. amountaplicabletotheenterprisefundof$1,57hasbenrecordedasa fundliabilityandtheamountaplicabletothegovernmentalfundsof $15,620hasbenrecordedinthosefundsinceitisanticipatedthe liabilitywilbeliquidatedwithavailablefinancialresources. Note17.UnbiledRevenue Intheutilityfund,unbiledrevenueasofJune30,198is$418,712which representsrevenuearnedintheyearendedjune30,198,butisnotbiled outuntilthenextbilingcycleinjuly,

43 NOTESTOFINANCIALSTATEMENTS Note18.DeficitFundEquity balance30,198 AtJune apropriationsfrommanagementintends of$282therecreationcenter otherfunds. MaintenanceFundhadadeficitfund toeliminatethisdeficithrough Note19.Post-EmploymentHealthCareBenefits A)Retirebenefits- InaditiontothepensionbenefitsdescribedinNote20,theCity providespost-retirementhealthcarebenefitstoemployesandtheir dependentswhoretiredfromthecitybeforejanuaryi,1989upuntil atainingage65.thecityfundsthebenefitonapay-as-you-gobasis. B)Cobra Curently,noretiresmetheseligibilityrequirements. UndertheConsolidatedOmnibusBudgetReconciliationActof1985 (COBRA),theCityprovideshealthcarebenefitstoeligibleformer employesandeligibledependents.certainrequirementsareoutlinedby thefederalgovernmentforthiscoverage.thepremiumplus2% administrationfeispaidinfulbytheinsuredonorbeforethetenth (loth)dayofthemonthfortheactualmonthcovered.thisprogramis oferedforadurationof18monthsaftertheterminationdate.thecity fundsthebenefitonapay-as-you-gobasis.thereisoneparticipantin theprogramasofjune30,198. Note20.PensionPlans TheCityhasseveralpensionplanscoveringsubstantialyalofits employes,asfolows: -MunicipalEmployes'RetirementSystemofLouisiana -StateofLouisiana-MunicipalPoliceEmployes'RetirementSystem -StateofLouisiana-Firefighters'RetirementSystem SubstantialyalemployesarecoveredundertheMunicipalEmployes' -LouisianaStateEmployes'RetirementSystem whicharecoveredunderthefirefighters'retirementsystem,municipal RetirementSystemofLouisianaexceptforfiremen,policemen,andjudges PoliceEmployes'RetirementSystem,andLouisianaStateEmployes' RetirementSystem,respectively.Detailsconcerningtheseplansfolow: -39-