AUDITED FINANCIAL STATEMENT AND SUPPLEMENTARY INFORMATION CITY OF ST. MARYS, KANSAS. December 31, 2012

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3 AUDITED FINANCIAL STATEMENT AND SUPPLEMENTARY INFORMATION December 31, 2012 Reese & Novelly, PA Certified Public Accountants St. Marys, Kansas

4 Audited Financial Statement and Supplementary Information City of St. Marys, Kansas Independent Auditors Report...1 Regulatory Basis Financial Statement Summary Statement of Receipts, Expenditures and Unencumbered Cash...3 Notes to Financial Statements...6 Regulatory Required Supplementary Information (Regulatory Basis) Schedule 1: Summary of Expenditures - Budget and Actual...17 Schedule 2: Schedules of Receipts and Expenditures - Budget and Actual: General Fund...18 Bond and Interest Fund...19 Special Purpose Funds: Special Highway Fund...20 Special Park and Recreation Fund...21 Fire Equipment Fund...22 County Sales Tax Fund...23 Summary of Non-budgeted Special Purpose Funds...24 Summary Schedule of Capital Project Funds (Non-budgeted)...25 Business Funds: Electric Utility Fund...26 Water Utility Fund...27 Sewer Service Fund...28 Sewer Debt Service Reserve Fund...29 Golf Course Fund...30 Refuse Utility Fund...31 Summary of Non-budgeted Business Funds...32 Schedule 3: Summary of Receipts and Disbursements Agency Funds...33 Other Information Schedule 4: Key Ratios of Financial Condition...34

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7 FINANCIAL STATEMENT AND NOTE DISCLOSURES

8 SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES AND UNENCUMBERED CASH REGULATORY BASIS Beginning Unencumbered Cash Balance Prior Year Canceled Encumbrances Receipts Expenditures Ending Unencumbered Cash Balance Add Encumbrances and Accounts Payable Ending Cash Balance Funds Governmental Type Funds: General $ 461,085 $ $ 1,161,326 $ 1,084,160 $ 538,251 $ 12,477 $ 550,728 Bond and Interest Funds: Bond and Interest 50,157 88,072 91,559 46,670 46,670 Special Purpose Funds: Special Highway 16, ,332 82,418 34, ,802 Special Parks and Recreation 4,457 30,959 31,350 4,066 4,066 Fire Equipment 139,219 86, ,707 79,170 79,170 County Sales Tax 611, , , , ,719 Crime Prevention 962 1, ,973 1,973 Capital Improvements 14, ,874 14,874 Equipment Reserve 47,052 48,859 3,255 92,656 92,656 TOTAL SPECIAL PURPOSE 833, , , ,225 1, ,260 Capital Projects: Electric Substation Project 11,066 1,210 9,856 9,856 The notes to the financial statement are an integral part of this statement. 3

9 SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES AND UNENCUMBERED CASH REGULATORY BASIS Beginning Unencumbered Cash Balance Prior Year Canceled Encumbrances Receipts Expenditures Ending Unencumbered Cash Balance Add Encumbrances and Accounts Payable Ending Cash Balance Funds Business Funds: Electric Utility 720,428 2,111,865 2,073, ,143 4, ,697 Water Utility 229, , , ,259 (4,823) 225,436 Sewer Service 261, , , ,064 1, ,701 Sewer Debt Service Reserve 192, , , , ,056 Golf Course 13, , ,117 21, ,788 Refuse Utility 62, , ,252 70,750 1,414 72,164 Sewer Reserve 14,601 45,000 33,615 25,986 25,986 TOTAL BUSINESS FUNDS 1,494,150 3,649,200 3,571,061 1,572,289 3,539 1,575,828 TOTAL REPORTING ENTITY $ 2,850,335 $ - $ 5,578,595 $ 5,595,639 $ 2,833,291 $ 17,051 $ 2,850,342 The notes to the financial statement are an integral part of this statement. 4

10 SUMMARY STATEMENT OF RECEIPTS, EXPENDITURES AND UNENCUMBERED CASH REGULATORY BASIS Composition of Cash: Checking accounts $ 395,218 Money market accounts 1,452,029 Certificates of deposit 1,044,161 Municipal court 15 TOTAL CASH 2,891,423 Less Agency Funds (per Schedule 3) (41,081) TOTAL REPORTING ENTITY (EXCLUDING AGENCY FUNDS) $ 2,850,342 The notes to the financial statement are an integral part of this statement. 5

11 NOTES TO FINANCIAL STATEMENT FINANCIAL REPORTING ENTITY December 31, 2012 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of St. Marys, Kansas (Municipality) was chartered October 9, 1869, and operates under a Commission-Manager form of government. The accounting policies of the Municipality conform to the cash-basis and budget laws of Kansas (regulatory basis). The following is a summary of the more significant policies: 1. The Financial Reporting Entity: The financial reporting entity of the City of St. Marys, Kansas is comprised of the primary government (the Municipality). The basic criterion for including a separate entity in the Municipality's financial reporting entity is the financial accountability of the Municipality for the separate entity. The Municipality is financially accountable if it appoints a voting majority of a related municipal entity s governing body and if it either has the ability to impose its will on the related municipal entity or there is a potential for the related municipal entity to provide certain financial benefits to, or impose certain financial burdens on, the primary government. There were no related municipal entities. 2. Regulatory Basis Fund Types: The accounts of the Municipality are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its cash, liabilities, fund balance, receipts, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statement in this report, into generic regulatory basis fund types and broad fund categories as follows: Governmental Funds The General Fund is the chief operating fund of the Municipality. It is used to account for all financial resources except those that are required to be accounted for in another fund. Special Purpose Funds are used to account for the proceeds of specific tax levies and other specific revenue sources (other than capital project and tax levies for long-term debt) that are intended for specified purposes. Bond and Interest Funds are used to account for the accumulation of resources, including tax levies, transfer from other funds and payment of long-term debt principal, interest, and related costs. Capital Projects Funds are used to account for the debt proceeds and other financial resources to be used for the acquisition or construction of major capital facilities or equipment. 6

12 NOTES TO FINANCIAL STATEMENT FINANCIAL REPORTING ENTITY December 31, 2012 Business Funds Business Funds are used to account for operations that provide goods or services to the general public on a continuing basis. Such operations are financed and operated in a manner similar to private business entities and (a) are intended to be self supporting through charges to users or (b) the governing body has deemed it appropriate to account for them as business funds for capital maintenance, public policy, management control, accountability, or other purposes. Fiduciary Funds Trust Funds are used to report assets held in trust for the benefit of the municipal financial reporting entity (i.e. pension funds, investment trust funds, private purpose trust funds which benefit the municipal reporting entity, scholarship funds, etc.). Agency Funds are used to account for assets held by the municipal reporting entity in a purely custodial capacity (payroll clearing fund, tax collection accounts, etc.). 3. Regulatory Basis of Accounting and Departure from Accounting Principles Generally Accepted in the United States of America: The municipal reporting entity prepares the financial statements using Kansas Municipal Audit and Accounting Guide (KMAAG) regulatory basis of accounting, which is designed to demonstrate compliance with the cash basis and budget laws of the State of Kansas. The KMAAG regulatory basis of accounting involves the recognition of cash, cash equivalents, marketable investments, and certain accounts payable and encumbrance obligations to arrive at a net unencumbered cash and investments balance on a regulatory basis for each fund, and the reporting of changes in unencumbered cash and investments of a fund resulting from the difference in regulatory basis revenues and regulatory basis expenditures for the fiscal year. Receipts are recognized when the cash balance of a fund is increased. Expenditures include disbursements, accounts payable, and encumbrances, with disbursements being adjusted for prior year s accounts payable and encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods and services, and are usually evidenced by a purchase order or written contract. For an interfund transaction, a receipt is recorded in the fund receiving cash from another fund, and the expenditure would be charged in the fund from which the transfer is made. All recognized assets and liabilities are measured and reported at cost, unless they have been permanently impaired and have no future cash value or represent no future obligation against cash. The KMAAG regulatory basis does not recognize capital assets, long-term debt, accrued receivables and payables, or any other assets, liabilities or deferred inflow or outflows, other than those mentioned above. The Municipality has approved a resolution that is in compliance with K.S.A a(c), waiving the requirement for application of generally accepted accounting principles and allowing the municipality to use the KMAAG regulatory basis of accounting. 7

13 NOTES TO FINANCIAL STATEMENT FINANCIAL REPORTING ENTITY December 31, Budgetary Information: Kansas statutes require that an annual operating budget be legally adopted for the general fund, special purpose funds (unless specifically exempted by statute), bond and interest funds, and business funds. Although directory rather than mandatory, the statutes provide for the following sequence and timetable in the adoption of the legal annual operating budget: a. Preparation of the budget for the succeeding calendar year on or before August 1. b. Publication in local newspaper of the proposed budget and notice of public hearing on the budget on or before August 5. c. Public hearing on or before August 15, but at least ten days after publication of notice of hearing. d. Adoption of the final budget on or before August 25. The statutes allow for the governing body to increase the originally adopted budget for previously unbudgeted increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing to amend the budget must be published in the local newspaper. At least ten days after publication the hearing may be held and the governing body may amend the budget at that time. The statutes permit transferring budgeted amounts between line items within an individual fund. However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of expenditures of individual funds. Budget comparison schedules are presented for each fund showing actual receipts and expenditures compared to legally budgeted receipts and expenditures. All legal annual operating budgets are prepared using the regulatory basis of accounting in which revenues are recognized when cash is received and expenditures include disbursements, accounts payable and encumbrances, with disbursements being adjusted for prior year s accounts payable and encumbrances. Encumbrances are commitments by the municipality for future payments and are supported by a document evidencing the commitment, such as a purchase order or contract. Any unused budgeted expenditure authority lapses at year-end. A legal operating budget is not required for capital project funds, trust funds and the following special purpose and business funds: Special Purpose Funds: Capital Improvement; Equipment Reserve; Swimming Complex; Water Tower Improvement; KLINK Highway Project Reserve Business Funds: Sewer Reserve; Electric Plant Reserve Spending in funds, which are not subject to the legal annual operating budget requirement, is controlled by federal regulations, other statutes, or by the use of internal spending limits established by the governing body. 8

14 NOTES TO FINANCIAL STATEMENT FINANCIAL REPORTING ENTITY December 31, Special Assessments: Projects financed in part by special assessments are financed through general obligation bonds of the Municipality and are retired from the bond and interest fund. Special assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special assessments received after the issuance of bonds are recorded as revenue in the bond and interest fund. 6. Cash and Investments: The Municipality uses an internally pooled cash system in which the cash balances from all funds are combined and invested to the extent available in certificates of deposit and other authorized investments. Earnings from these investments, unless specifically designated, are allocated to the general fund and the utility funds based upon their average cash balances. Investments are stated at cost, which approximates market. 7. Reimbursements: The Municipality records reimbursable expenditures in the fund that makes the disbursement and records reimbursements as revenue to the fund. For purposes of budgetary comparisons, the reimbursement is recorded as a qualifying budget credit in the fund receiving the reimbursement. 8. Property Tax: The Pottawatomie County Clerk calculates the final tax levy rates necessary to finance the budget subject to any legal limitations. After all budgets have been received and tax rates calculated, the clerk certifies the tax roll to, and prepares tax statements for, the County Treasurer who receives payment. Taxes levied to finance the budget are made available to the Municipality after January 1 and are distributed by the County Treasurer per statutes. At least 50% of the taxes levied are available in January. Delinquent tax collections are distributed throughout the year. NOTE B STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY 1. Amendments to Legal Budgets: The legal budgets for the Water Fund and Electric Fund were amended during NOTE C DEPOSITS AND INVESTMENTS As of December 31, 2012, the Municipality s investments consisted of short-term certificates of deposit. K.S.A establishes the depositories which may be used by the Municipality. The statute requires banks eligible to hold the Municipality s funds have a main or branch bank in the county in which the Municipality is located, or in an adjoining county if such institution has been designated as an official depository, and the banks provide an acceptable rate of return on funds. In addition, K.S.A requires the banks to pledge securities for deposits in excess of FDIC coverage. The Municipality has no other policies that would further limit interest rate risk. 9

15 NOTES TO FINANCIAL STATEMENT FINANCIAL REPORTING ENTITY December 31, 2012 K.S.A limits the Municipality s investment of idle funds to time deposits, open accounts, and certificates of deposit with allowable financial institutions; U.S. government securities; temporary notes; no-fund warrants; repurchase agreements; and the Kansas Municipal Investment Pool. The Municipality has no investment policy that would further limit its investment choices. The Municipality had no investments, other than certificates of deposit which are included in the bank deposits; therefore they do not have a rating. Concentration of credit risk: State statutes place no limit on the amount the Municipality may invest in any one issuer as long as the investments are adequately secured under K.S.A and Custodial credit risk deposits: Custodial credit risk is the risk that in the event of a bank failure, the Municipality s deposits may not be returned to it. State statutes require the Municipality s deposits in financial institutions to be entirely covered by federally depository insurance or by collateral held under a joint custody receipt issued by a bank within the State of Kansas, the Federal Reserve Bank of Kansas, or the Federal Home Loan Bank of Topeka, except during designated peak periods when required coverage is 50%. The Municipality had no agreements for designated peak periods. All deposits were legally secured at December 31, At December 31, 2012, the carrying amount of the Municipality s deposits, including certificates of deposit, was $2,891,423 and the bank balance was $2,894,155. The bank balance was held by two banks which resulted in a concentration of credit risk. Of the bank balance, $839,611 was covered by federal depository insurance and $2,054,544 was collateralized with securities held by the pledging financial institutions agents in the Municipality s name. Custodial credit risk investments: For an investment, this is the risk that, in the event of the failure of the issuer or counterparty, the Municipality will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. State statutes require investments to be adequately secured. 10

16 NOTES TO FINANCIAL STATEMENT FINANCIAL REPORTING ENTITY December 31, 2012 NOTE D LONG TERM DEBT The following is a summary of debt transactions of the Municipality for the year ended December 31, See Notes L and M for the schedules of long-term liabilities and current maturities of long-term debt. Payable Beginning of Year Issued Retired Payable End of Year General Obiligation Bonds $ 370,000 $ 80,000 $ 290,000 Revolving Notes 2,534, ,724 2,349,693 Capital Leases 218, ,728 - Total $ 3,123,145 $ - $ 483,452 $ 2,639,693 Total interest expense for the year was $108,413. Conduit Debt From time to time, the Municipality has issued industrial revenue bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are generally payable from and secured by the project financed and if needed, additional assets and/or revenues of the private-sector entity served by the bond issuance. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the Municipality, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statement. As of December 31, 2012, there were four series of industrial revenue bonds outstanding. The aggregate principal amount payable at December 31, 2012 could not be determined; however, their original issue amounts totaled $2 million. NOTE E DEFINED BENEFIT PENSION PLAN Plan Description: The non-school Municipality participates in the Kansas Public Employees Retirement System (KPERS), a cost-sharing, multiple-employer defined benefit pension plan as provided by Kansas law. KPERS provides retirement benefits, life insurance, disability income benefits, and death benefits. Kansas law establishes and amends benefit provisions. KPERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to KPERS (611 S. Kansas, Suite 100; Topeka, KS 66603) or by calling

17 NOTES TO FINANCIAL STATEMENT FINANCIAL REPORTING ENTITY December 31, 2012 Funding Policy: K.S.A and K.S.A ,210 establishes the KPERS memberemployee contribution rates. Effective July 1, 2009 KPERS has two benefit structures and funding depends on whether the employee is a Tier 1 or Tier 2 member. Tier 1 members are active and contributing members hired before July 1, Tier 2 members were first employed in a covered position on or after July 1, Kansas law establishes the KPERS memberemployee contribution rate at four percent of covered salary for Tier 1 members and at six percent of covered salary for Tier 2 members. The employer collects and remits memberemployee contributions according to the provisions of Section 414(h) of the Internal Revenue Code. Kansas law provides that the employer contribution rates be determined annually based on the results of an annual actuarial valuation. KPERS is funded on an actuarial reserve basis. Kansas law sets a limitation on annual increases in the employer contribution rates. The Municipality s employer contributions to KPERS for the years ending December 31, 2012, 2011, and 2010, were $78,739, $71,969, and $64,231, respectively, equal to the statutory required contributions for each year. NOTE F DEFERRED COMPENSATION The Municipality participates in the Kansas Public Employees Deferred Compensation Plan, as authorized by K.S.A a and b. The City of St. Marys, Kansas is a joint contract owner with the State of Kansas of the group annuity contract issued by ING Life Insurance and Annuity Company in conjunction with the Kansas Public Employees Deferred Compensation Plan. The Municipality annually determines whether matching funds will be paid into employees accounts. For the year ended December 31, 2012, the Municipality paid $8,620 in matching contributions. The Municipality is not responsible for any loss incurred by an employee under the Municipality s deferred compensation plan. All conditions of the plan shall be controlling. NOTE G OTHER POST EMPLOYMENT BENEFIT As provided by K.S.A , the municipality allows retirees to participate in the group health insurance plan. While each retiree pays the full amount of the applicable premium, conceptually, the municipality is subsidizing the retirees because each participant is charged a level of premium regardless of age. However, the cost of this subsidy has not been quantified in these financial statements. Under the Consolidated Budget Reconciliation Act (COBRA), the municipality makes health care benefits available to eligible former employees and eligible dependents. Certain requirements are outlined by the federal government for this coverage. The premium is paid in full by the insured. 12

18 NOTES TO FINANCIAL STATEMENT FINANCIAL REPORTING ENTITY December 31, 2012 NOTE H COMPENSATED ABSENCES The Municipality maintains a policy of providing vacation and sick leave to its full-time employees, granted in varying amounts depending on length of service and date of hire. Vacation days are vesting and accumulate but accumulation is subject to various limits. Sick leave is non-vesting and accumulates up to a maximum of 720 hours for employees hired after January 1, Employees hired prior to January 1, 2005 have unlimited accumulation of sick leave. At December 31, 2012, the Municipality s liability for unused vacation time is approximately $66,920 attributable to governmental and proprietary funds. NOTE I COMMITMENTS AND CONTINGENCIES Construction Contracts: At December 31, 2012, the Municipality had several pending construction project contracts. Commitments related to significant contracts include contracts for the Municipality s street improvements. Risk Management: The Municipality is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Municipality manages these various risks of loss through commercial insurance with varying deductibles. All deductibles are $1,000 or less. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. NOTE J TRANSFERS Operating transfers were as follows: FROM TO Statutory Authority Amount General Fund Equipment Reserve Fund K.S.A. 12-1,117 $ 3,800 County Sales Tax General Fund K.S.A. 12-1, ,000 County Sales Tax Golf Course Fund K.S.A. 12-1,118 20,000 County Sales Tax Special Highway Fund K.S.A ,000 County Sales Tax Fire Equipment Reserve K.S.A. 12-1,118 6,500 County Sales Tax Equipment Reserve Fund K.S.A. 12-1,117 20,000 Golf Course Fund Bond and Interest Fund K.S.A d 2,142 Sewer Fund Sewer Reserve Fund K.S.A o 45,000 Sewer Fund Sewer Debt Service K.S.A o 233,418 Refuse Fund Equipment Reserve Fund K.S.A. 12-1,117 25,000 $ 550,860 13

19 NOTES TO FINANCIAL STATEMENT FINANCIAL REPORTING ENTITY December 31, 2012 NOTE K MANAGEMENT S REVIEW OF SUBSEQUENT EVENTS In preparing these financial statements, the Municipality has evaluated events and transactions for potential recognition or disclosure through November 6, 2013, the date the financial statements were available to be issued. 14

20 NOTES TO FINANCIAL STATEMENTS NOTE L - SCHEDULE OF LONG-TERM DEBT The following is a schedule of changes in long term debt for the City for the year ended December 31, 2012 Interest Rate Date of Issue Original Amount General obligation bonds Series 1997A Parkside street and sewer improvements 4.8/6.25% 5/1/ ,675 Date of Final Maturity Beginning Balance Issued Retired Net Change Ending Balance Interest Paid $ 10/1/2012 $ 25,000 $ $ 25,000 $ (25,000) $ - $ 1,400 Series 1997 B Parkside street and sewer improvements 4.5/6.45% 11/1/ ,500 10/1/ ,000 10,000 (10,000) 10,000 1,025 Series 2011 Refinance 1.0/3.40% 2/16/ ,000 10/1/ ,000 45,000 (45,000) 280,000 8,395 TOTAL GENERAL OBLIGATION BONDS 762, ,000-80,000 (80,000) 290,000 10,820 KDHE Revolving Loan Wastewater treatment plant 3.24% 8/22/2000 3,385,268 3/1/2022 2,037, ,731 (163,731) 1,873,587 69,686 Water supply 3.51% 2/13/ ,673 2/1/ ,099 20,993 (20,993) 476,106 17,266 TOTAL REVOLVING LOANS 3,931,941 2,534, ,724 (184,724) 2,349,693 86,952 Capital leases City Hall 4.90% 7/14/ ,000 8/1/ , ,542 (158,542) - 8,321 Watch Guard In-Car Video Systems 3.45% 1/9/ ,255 1/30/2012 3,418 3,418 (3,418) Altec Bucket Truck 4.27% 5/20/ ,000 10/31/ ,334 21,334 (21,334) Mobile Radios 3.90% 6/17/ ,234 6/17/2012 6,744 6,744 (6,744) Ford F750 Chassis 4.15% 9/22/ ,969 9/22/ ,990 16,990 (16,990) Crown Victoria 2.87% 1/11/ ,700 1/30/ ,700 11,700 (11,700) TOTAL CAPITAL LEASES 577, , ,728 (218,728) 10,641 TOTAL INDEBTEDNESS $ 5,271,274 $ 3,123,145 $ - $ 483,452 $ (483,452) $ 2,639,693 $ 108,413 15

21 NOTES TO FINANCIAL STATEMENTS NOTE M: SCHEDULE OF MATURITY OF LONG TERM DEBT The current maturities of long term debt and interest for the next five years and in five year increments through maturity is as follows: Total PRINCIPAL General obligation bonds $ 55,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 75,000 $ $ $ 290,000 Revolving loans 191, , , , ,635 1,103, ,202 55,428 2,349,693 TOTAL PRINCIPAL 246, , , , ,635 1,178, ,202 55,428 2,639,693 INTEREST General obligation bonds 8,325 6,910 5,990 4,950 3,750 3,680 33,605 Revolving loans 80,444 73,708 66,734 59,515 52, ,546 26,089 1, ,033 TOTAL INTEREST 88,769 80,618 72,724 64,465 55, ,226 26,089 1, ,638 TOTAL PRINCIPAL AND INTEREST $ 335,000 $ 318,586 $ 317,666 $ 316,627 $ 315,425 $ 1,320,351 $ 191,291 $ 57,385 $ 3,172,331 16

22 REGULATORY-REQUIRED SUPPLEMENTARY INFORMATION

23 SUMMARY OF EXPENDITURES - BUDGET AND ACTUAL BUDGETED FUNDS ONLY (SCHEDULE 1) Certified Budget (As Amended) Adjustment for Qualifying Budget Credits Total Budget for Comparison Expenditures Chargeable to Current Year Favorable (Unfavorable) Variance Governmental Type Funds: General $ 1,186,501 $ $ 1,186,501 $ 1,084,160 $ 102,341 Bond and Interest Funds: Bond and Interest 144, ,326 91,559 52,767 Special Purpose Funds: Special Highway 100, ,059 82,418 17,641 Special Park and Recreation 32,783 32,783 31,350 1,433 Fire Equipment 155,000 3, , ,707 11,501 County Sales Tax 644, , ,419 60,581 Business Funds: Electric Utility 2,200,000 2,200,000 2,073, ,850 Water Utility 350, , ,272 21,728 Sewer Service 552, , ,238 34,257 Sewer Debt Service 233, , ,417 1 Golf Course 170, , ,117 17,836 Refuse Utility 258, , ,252 26,757 17

24 SCHEDULE OF RECEIPTS AND EXPENDITURES - BUDGET AND ACTUAL REGULATORY BASIS GENERAL FUND - (SCHEDULE 2) Budget Actual Favorable (Unfavorable) Variance Cash Receipts: Taxes and shared revenues $ 543,972 $ 542,106 $ (1,866) Intergovernmental revenue 11,629 11, Sales tax 217, ,502 78,384 Fines, forfeitures, and penalties 15,000 31,070 16,070 Licenses, permits, and fees 28,875 26,944 (1,931) Charges for services 16,848 22,980 6,132 Use of money and property 7,950 11,713 3,763 Reimbursements and grants 6,000 42,933 36,933 Miscellaneous 4,150 11,198 7,048 Operating transfers 165, ,000 - TOTAL CASH RECEIPTS 1,016,542 1,161, ,784 Expenditures: Personnel expenditures 749, ,342 89,098 General 116, ,874 (21,868) Public safety 148, ,093 (4,258) Municipal court 5,510 5,870 (360) Street department 136, ,313 31,717 Public buildings and grounds 15,000 1,361 13,639 Swimming pool 11,880 17,507 (5,627) Operating transfers 3,800 3,800 - TOTAL EXPENDITURES 1,186,501 1,084, ,341 RECEIPTS OVER (UNDER) EXPENDITURES (169,959) 77,166 Beginning Unencumbered Cash Balance 169, ,085 ENDING UNENCUMBERED CASH BALANCE $ - $ 538,251 18

25 SCHEDULE OF RECEIPTS AND EXPENDITURES - BUDGET AND ACTUAL REGULATORY BASIS - BOND & INTEREST BOND AND INTEREST FUND - (SCHEDULE 2) Budget Actual Favorable (Unfavorable) Variance Cash Receipts: Taxes and shared revenues $ 92,817 $ 85,930 $ (6,887) Operating transfers 2,142 2,142 - TOTAL CASH RECEIPTS 94,959 88,072 (6,887) Expenditures: Contractual services and other charges (729) Materials and supplies 53,000 53,000 Debt payments: Principal 80,000 80,000 - Interest 11,316 10, TOTAL EXPENDITURES 144,326 91,559 52,767 RECEIPTS OVER (UNDER) EXPENDITURES (49,367) (3,487) Beginning Unencumbered Cash Balance 49,367 50,157 ENDING UNENCUMBERED CASH BALANCE $ - $ 46,670 19

26 SCHEDULE OF RECEIPTS AND EXPENDITURES - BUDGET AND ACTUAL REGULATORY BASIS - SPECIAL HIGHWAY SPECIAL PURPOSE FUND - (SCHEDULE 2) Budget Actual Favorable (Unfavorable) Variance Cash Receipts: Taxes and shared revenues $ 61,350 $ 68,542 $ 7,192 Miscellaneous 1,790 1,790 Operating transfers 30,000 30,000 - TOTAL CASH RECEIPTS 91, ,332 8,982 Expenditures: Contractual services and other charges 7,000 6, Materials and supplies 93,059 75,809 17,250 TOTAL EXPENDITURES 100,059 82,418 17,641 RECEIPTS OVER (UNDER) EXPENDITURES (8,709) 17,914 Beginning Unencumbered Cash Balance 8,709 16,413 ENDING UNENCUMBERED CASH BALANCE $ - $ 34,327 20

27 SCHEDULE OF RECEIPTS AND EXPENDITURES - BUDGET AND ACTUAL REGULATORY BASIS - SPECIAL PARKS AND RECREATION SPECIAL PURPOSE FUND - (SCHEDULE 2) Budget Actual Favorable (Unfavorable) Variance Cash Receipts: Taxes and shared revenues $ 7,786 $ 8,294 $ 508 Charges for services 15,500 20,255 4,755 Use of money and property 1, (810) Miscellaneous 100 (100) Contract revenue 1,500 1, TOTAL CASH RECEIPTS 26,506 30,959 4,453 Expenditures: Personnel expenditures 13,351 10,030 3,321 Contractual services and other charges 11,225 11,950 (725) Materials and supplies 8,207 9,276 (1,069) Capital outlay 79 (79) Miscellaneous 15 (15) TOTAL EXPENDITURES 32,783 31,350 1,433 RECEIPTS OVER (UNDER) EXPENDITURES (6,277) (391) Beginning Unencumbered Cash Balance 6,277 4,457 ENDING UNENCUMBERED CASH BALANCE $ - $ 4,066 21

28 SCHEDULE OF RECEIPTS AND EXPENDITURES - BUDGET AND ACTUAL REGULATORY BASIS - FIRE EQUIPMENT SPECIAL PURPOSE FUND - (SCHEDULE 2) Budget Actual Favorable (Unfavorable) Variance Cash Receipts: Reimbursements and grants $ $ 3,208 $ 3,208 Miscellaneous 3,700 3,700 Contract revenue 71,625 73,250 1,625 Operating transfers 6,500 6,500 - TOTAL CASH RECEIPTS 78,125 86,658 8,533 Expenditures: Materials and supplies 15,000 6,706 8,294 Capital outlay 140, ,001 (1) Adjustment for qualifying budget credit 3,208 3,208 TOTAL EXPENDITURES 158, ,707 11,501 RECEIPTS OVER (UNDER) EXPENDITURES (80,083) (60,049) Beginning Unencumbered Cash Balance 135, ,219 ENDING UNENCUMBERED CASH BALANCE $ 55,304 $ 79,170 22

29 SCHEDULE OF RECEIPTS AND EXPENDITURES - BUDGET AND ACTUAL REGULATORY BASIS - COUNTY SALES TAX SPECIAL PURPOSE FUND - (SCHEDULE 2) Budget Actual Favorable (Unfavorable) Variance Cash Receipts: Taxes and shared revenues $ 325,000 $ 389,340 $ 64,340 Use of money and property 2,000 1,865 (135) Miscellaneous 20,349 20,349 TOTAL CASH RECEIPTS 327, ,554 84,554 Expenditures: Contractual services and other charges 20,000 20,000 Capital outlay 352, ,919 10,581 Miscellaneous 5,000 5,000 Operating transfers 266, ,500 25,000 TOTAL EXPENDITURES 644, ,419 60,581 RECEIPTS OVER (UNDER) EXPENDITURES (317,000) (171,865) Beginning Unencumbered Cash Balance 349, ,024 ENDING UNENCUMBERED CASH BALANCE $ 32,658 $ 439,159 23

30 SCHEDULE OF RECEIPTS AND EXPENDITURES REGULATORY BASIS SUMMARY OF NON-BUDGETED SPECIAL PURPOSE FUNDS - (SCHEDULE 2) Crime Prevention Capital Improvement Equipment Reserve Cash Receipts: Licenses, permits, and fees $ 373 $ $ Use of money and property Miscellaneous 1,138 Operating transfers 48,800 TOTAL CASH RECEIPTS 1, ,859 Expenditures: Capital outlay 500 3,255 RECEIPTS OVER (UNDER) EXPENDITURES 1, ,604 Beginning Unencumbered Cash Balance ,750 47,052 ENDING UNENCUMBERED CASH BALANCE $ 1,973 $ 14,874 $ 92,656 24

31 SCHEDULE OF RECEIPTS AND EXPENDITURES REGULATORY BASIS SUMMARY SCHEDULE OF CAPITAL PROJECTS FUNDS (SCHEDULE 2) Cash Receipts: Electric Substation Project Expenditures: Capital outlay 1,210 RECEIPTS OVER (UNDER) EXPENDITURES (1,210) Beginning Unencumbered Cash Balance 11,066 ENDING UNENCUMBERED CASH BALANCE $ 9,856 25

32 SCHEDULE OF RECEIPTS AND EXPENDITURES - BUDGET AND ACTUAL REGULATORY BASIS - ELECTRIC UTILITY BUSINESS FUND - (SCHEDULE 2) Budget Actual Favorable (Unfavorable) Variance Cash Receipts: Charges for services $ 1,861,500 $ 2,031,633 $ 170,133 Use of money and property 16,250 21,637 5,387 Reimbursements and grants 33,916 33,916 Miscellaneous 22,867 22,867 Contract revenue 1,406 1, TOTAL CASH RECEIPTS 1,879,156 2,111, ,709 Expenditures: Personnel expenditures 321, ,020 30,906 Contractual services and other charges 312, ,255 (19,775) Materials and supplies 1,393,600 1,414,080 (20,480) Capital outlay 171,994 22, ,782 Miscellaneous 13,583 (13,583) TOTAL EXPENDITURES 2,200,000 2,073, ,850 RECEIPTS OVER (UNDER) EXPENDITURES (320,844) 38,715 Beginning Unencumbered Cash Balance 1,020, ,428 ENDING UNENCUMBERED CASH BALANCE $ 699,415 $ 759,143 26

33 SCHEDULE OF RECEIPTS AND EXPENDITURES - BUDGET AND ACTUAL REGULATORY BASIS - WATER UTILITY BUSINESS FUND - (SCHEDULE 2) Budget Actual Favorable (Unfavorable) Variance Cash Receipts: Charges for services $ 263,000 $ 324,919 $ 61,919 Use of money and property 2,825 4,860 2,035 Miscellaneous 500 (905) (1,405) TOTAL CASH RECEIPTS 266, ,874 62,549 Expenditures: Personnel expenditures 175, , Contractual services and other charges 79,649 72,859 6,790 Materials and supplies 29,250 24,333 4,917 Capital outlay 27,500 17,699 9,801 Miscellaneous 31 (31) Debt payments: Principal 20,993 20,993 - Interest 17,266 17,266 - TOTAL EXPENDITURES 350, ,272 21,728 RECEIPTS OVER (UNDER) EXPENDITURES (83,675) 602 Beginning Unencumbered Cash Balance 196, ,657 ENDING UNENCUMBERED CASH BALANCE $ 112,544 $ 230,259 27

34 SCHEDULE OF RECEIPTS AND EXPENDITURES - BUDGET AND ACTUAL REGULATORY BASIS - SEWER SERVICE BUSINESS FUND - (SCHEDULE 2) Budget Actual Favorable (Unfavorable) Variance Cash Receipts: Charges for services $ 529,250 $ 528,790 $ (460) Use of money and property TOTAL CASH RECEIPTS 529, ,054 (346) Expenditures: Personnel expenditures 171, ,423 15,142 Contractual services and other charges 61,012 66,808 (5,796) Materials and supplies 35,000 16,589 18,411 Capital outlay 6,500 6,500 Operating transfers 278, ,418 - TOTAL EXPENDITURES 552, ,238 34,257 RECEIPTS OVER (UNDER) EXPENDITURES (23,095) 10,816 Beginning Unencumbered Cash Balance 190, ,248 ENDING UNENCUMBERED CASH BALANCE $ 166,990 $ 272,064 28

35 SCHEDULE OF RECEIPTS AND EXPENDITURES - BUDGET AND ACTUAL REGULATORY BASIS - SEWER DEBT SERVICE RESERVE BUSINESS FUND - (SCHEDULE 2) Budget Actual Favorable (Unfavorable) Variance Cash Receipts: Use of money and property $ $ 167 $ 167 Operating transfers 233, ,418 - TOTAL CASH RECEIPTS 233, , Expenditures: Principal 158, ,731 (5,568) Interest 75,255 69,686 5,569 TOTAL EXPENDITURES 233, ,417 1 RECEIPTS OVER (UNDER) EXPENDITURES Beginning Unencumbered Cash Balance 192, ,888 ENDING UNENCUMBERED CASH BALANCE $ 192,723 $ 193,056 29

36 SCHEDULE OF RECEIPTS AND EXPENDITURES - BUDGET AND ACTUAL REGULATORY BASIS - GOLF COURSE BUSINESS FUND - (SCHEDULE 2) Budget Actual Favorable (Unfavorable) Variance Cash Receipts: Charges for services $ 107,131 $ 106,015 $ (1,116) Use of money and property 24,600 24,157 (443) Reimbursements and grants Miscellaneous 5,050 8,423 3,373 Contract revenue 2,300 2,300 - Operating transfers 20,000 20,000 - TOTAL CASH RECEIPTS 159, ,927 1,846 Expenditures: Personnel expenditures 101,811 90,665 11,146 Contractual services and other charges 35,550 34,294 1,256 Materials and supplies 29,500 20,145 9,355 Capital outlay 72 (72) Miscellaneous 1,950 5,799 (3,849) Operating transfers 2,142 2,142 - TOTAL EXPENDITURES 170, ,117 17,836 RECEIPTS OVER (UNDER) EXPENDITURES (11,872) 7,810 Beginning Unencumbered Cash Balance 18,857 13,221 ENDING UNENCUMBERED CASH BALANCE $ 6,985 $ 21,031 30

37 SCHEDULE OF RECEIPTS AND EXPENDITURES - BUDGET AND ACTUAL REGULATORY BASIS - REFUSE UTILITY BUSINESS FUND - (SCHEDULE 2) Budget Actual Favorable (Unfavorable) Variance Cash Receipts: Licenses, permits, and fees $ 6,095 $ 10,741 $ 4,646 Charges for services 221, ,266 1,816 Miscellaneous 3,500 5,888 2,388 TOTAL CASH RECEIPTS 231, ,895 8,850 Expenditures: Personnel expenditures 128, ,536 18,018 Contractual services and other charges 76,355 78,782 (2,427) Materials and supplies 18,100 16,843 1,257 Capital outlay 10, ,909 Operating transfers 25,000 25,000 - TOTAL EXPENDITURES 258, ,252 26,757 RECEIPTS OVER (UNDER) EXPENDITURES (26,964) 8,643 Beginning Unencumbered Cash Balance 45,940 62,107 ENDING UNENCUMBERED CASH BALANCE $ 18,976 $ 70,750 31

38 SCHEDULE OF RECEIPTS AND EXPENDITURES REGULATORY BASIS SUMMARY OF NON-BUDGETED BUSINESS FUNDS (SCHEDULE 2) Sewer Reserve Cash Receipts: Operating transfers $ 45,000 Expenditures: Capital outlay 33,615 RECEIPTS OVER (UNDER) EXPENDITURES 11,385 Beginning Unencumbered Cash Balance 14,601 ENDING UNENCUMBERED CASH BALANCE $ 25,986 32

39 SUMMARY OF RECEIPTS AND DISBURSEMENTS REGULATORY BASIS AGENCY FUNDS (SCHEDULE 3) For the Fund Beginning Cash Balance Receipts Disbursements Ending Cash Balance Fiduciary type funds: Trust and agency: Municipal Court ADSAP $ 15 $ $ $ 15 Municipal Court 37,558 37,558 - Customer deposits 31,300 34,949 25,183 41,066 TOTAL 31,315 72,507 62,741 41,081 33

40 OTHER INFORMATION

41 SCHEDULE 4: KEY RATIOS OF FINANCIAL CONDITION GOVERNMENTAL FUNDS ONLY Ratio Total Revenue Per Capita: Compares existing revenue base for all governmental funds (excluding capital project funds and transfers) relative to the population change. Operating revenues 1,676,953 2,175,749 1,686,398 Population* 2,627 $ 638 2,567 $ 848 2,508 $ Intergovernmental Revenues / Total Revenue Percentage: Shows how dependent a jurisidiction is on other units of government such as the state, national, or local units. Total general fund intergovernmental revenues 307, , ,136 Total general fund sources 1,161, % 1,134, % 994, % 3. Property Tax or Own Source Tax Revenue / Total Revenue Percentage: Shows how dependent a jurisdiction is on tax revenues for its general fund operations. General fund tax revenue 573, , ,273 Total general fund sources 1,161, % 1,134, % 994, % 4. General fund sources from other funds / Total Revenue: Shows how dependent a jurisdiction is on operating transfers into the General Fund. General fund sources from other funds 165, , ,000 Total general fund sources 1,161, % 1,134, % 994, % 5. Total Expenditures per Capita: Compares expenditures for all governmental funds (excluding capital project funds and transfers) to population changes. Operating expenditures 1,778,068 1,807,441 1,699,701 Population* 2,627 $ 677 2,567 $ 704 2,508 $ Operating Expenses / Total Expenditures: Operating expenditures are the total expenditures for general, special revenues, and debt service funds (excluding transfers). Total expenditures is total expenditures of all government funds. Operating expenditures 1,778,068 1,807,441 1,699,701 Total expenditures 2,024, % 2,011, % 1,891, % 34

42 SCHEDULE 4: KEY RATIOS OF FINANCIAL CONDITION GOVERNMENTAL FUNDS ONLY Ratio Total Revenues / Total Expenditures: Total revenues for all governmental funds and total expenditures for all governmental funds. Total revenues 1,929,395 2,374,391 1,850,040 Total expenditures 2,024, ,011, ,891, Operating Surplus (deficit) / Operating Revenues Percentage: Reflects the results of the general fund operations. General fund receipts over (under) expenditures 77, ,843-25,245 General fund revenue 1,161, % 1,134, % 994, % 9. General Fund Balance / General Fund Revenues Percentage: Measures a jurisdictions capacity to withstand financial emergencies. General fund Unencumbered Cash Balance 538, , ,242 Total general fund revenues 1,161, % 1,134, % 994, % 10. General Obligation Debt / Population: Full faith and credit debt of the jurisdiction divided by the population. General obligation debt 290, , ,000 Population* 2,627 $ 110 2,567 $ 144 2,508 $ General Obligation Debt / Assessed Value Percentage: Full faith and credit debt of the jurisdiction divided by the assessed value. General obligation debt 290, , ,000 Assessed Value (per budget) 14,425, % 14,459, % 14,344, % 12. Debt service / Operating Revenues Percentage: Measures the level of debt service to total general fund revenues. The City refinanced a General Obligation Bond in 2011 of $350,000. Debt service 91, ,933 96,831 Total revenues 1,676, % 2,175, % 1,686, % * Based on 2010 census, average increase per year from 2000 census to 2010 was 2.27% for the City. County wide the population increased 1.86% per year and 6.13% per year statewide. 35

43 SCHEDULE 4: KEY RATIOS OF FINANCIAL CONDITION ELECTRIC UTILITY FUND Ratio Average Revenue (Regulatory Basis) per User: Compares existing revenue base (users include residential, commercial, industry, etc) for business funds (excludes transfers) relative to the change in users. Operating revenues 2,111,865 2,073,594 2,044,325 Avg Number of Users 1,078 $ 1,959 1,073 $ 1,933 1,067 $ 1, Total Expenditures per Capita: Compares expenditures for the business funds (excludes transfers) relative to change in users. Operating expenditures 2,073,150 1,994,008 1,780,058 Avg Number of Users 1,078 $ 1,923 1,073 $ 1,858 1,067 $ 1, Operating Revenues / Operating Expenditures: Total revenues for business fund and total expenditures for business fund. (Excludes transfers in and transfers out) Operating revenues 2,111,865 2,073,594 2,044,325 Operating expenditures 2,073, % 1,994, % 1,780, % 4. Operating Surplus (deficit) / Operating Revenues Percentage: Reflects the results of the business fund operations. Business fund receipts over (under) expenditures 38,715 79, ,267 Business fund revenue 2,111, % 2,073, % 2,044, % 5. Business Fund Balance / Business Fund Revenues Percentage: Measures a jurisdictions capacity to withstand financial emergencies. Business fund Unencumbered Cash Balance 759, , ,842 Operating revenues 2,111, % 2,073, % 2,044, % 6. Business Fund Debt / Average number of users: Full faith and credit debt of the jurisdiction divided by the average number of users. Electric fund has an oustanding Series 2005 Electric System Revenue Bond with an issue date of 3/1/2005 and it was paid off as of 12/1/2011. Business fund debt ,000 Avg Number of Users 1,078 $ - 1,073 $ - 1,067 $

44 SCHEDULE 4: KEY RATIOS OF FINANCIAL CONDITION ELECTRIC UTILITY FUND Ratio Debt service expense / Operating Revenues Percentage: Measures the level of debt service to total business fund revenues. Debt service - 147, ,574 Operating revenues 2,111, % 2,073, % 2,044, % 8. Average Price Per KWH sold: Revenue (Regulatory Basis) / KWH Sold: Compares existing revenue base for business funds (excludes transfers) relative to the change in actual usage. Operating revenues 2,111,865 2,073,594 2,044,325 KWH Sold 18,709,604 $ ,876,000 $ ,027,000 $ Average Cost Per KWH sold: Operating Expenditures / KWH Sold: Compares operating expenditures for business funds (excludes transfers) relative to the change in actual usage. Operating expenditures 2,073,150 1,994,008 1,780,058 KWH Sold 18,709,604 $ ,876,000 $ ,027,000 $ Line Loss: Compares the KWH purchased to what is actually sold, difference being line loss (line loss includes electric power used by City operations, used but not billed) KWH Purchased - KWH Sold 2,811,396 2,973,000 2,542,000 KWH Purchased 21,521,000 13% 21,849,000 14% 21,569,000 12% 37

45 SCHEDULE 4: KEY RATIOS OF FINANCIAL CONDITION WATER UTILITY FUND Ratio Average Revenue (Regulatory Basis) per User: Compares existing revenue base (users include residential, commercial, industry, etc) for business funds (excludes transfers) relative to the change in users. Operating revenues 328, , ,192 Avg Number of Users 947 $ 347 1,011 $ $ Total Expenditures per Capita: Compares expenditures for the business funds (excludes transfers) relative to change in users. Operating expenditures 328, , ,435 Avg Number of Users 947 $ 347 1,011 $ $ Operating Revenues / Operating Expenditures: Total revenues for business fund and total expenditures for business fund. (Excludes transfers in and transfers out) Operating revenues 328, , ,192 Operating expenditures 328, % 356,775 78% 292,435 93% 4. Operating Surplus (deficit) / Operating Revenues Percentage: Reflects the results of the business fund operations. Business fund receipts over (under) expenditures ,118-19,243 Business fund revenue 328, % 278, % 273, % 5. Business Fund Balance / Business Fund Revenues Percentage: Measures a jurisdictions capacity to withstand financial emergencies. Business fund Unencumbered Cash Balance 230, , ,776 Operating revenues 328, % 278, % 273, % 6. Business Fund Debt / Average number of users: Full faith and credit debt of the jurisdiction divided by the average number of users. Water fund has an oustanding KDHE Public Water Supply revolving loan with an issue date of 2/13/2008 and maturity date of 2/1/2029. Business fund debt 476, , ,374 Avg Number of Users 947 $ 503 1,011 $ $

46 SCHEDULE 4: KEY RATIOS OF FINANCIAL CONDITION WATER UTILITY FUND Ratio Debt service expense / Operating Revenues Percentage: Measures the level of debt service to total business fund revenues. Debt service 38,259 38,258 38,258 Operating revenues 328, % 278, % 273, % 8. Average Price Per Gallon Sold: Revenue (Regulatory Basis) / Gallons Sold: Compares existing revenue base for business funds (excludes transfers) relative to the change in actual usage. Operating revenues 328, , ,192 Gallons sold 93,716,511 $ ,507,300 $ ,409,100 $ Average Cost Per Gallon sold: Operating Expenditures / Gallons Sold: Compares operating expenditures for business funds (excludes transfers) relative to the change in actual usage. Operating expenditures 328, , ,435 Gallons sold 93,716,511 $ ,507,300 $ ,409,100 $ Line Loss: Compares the gallons pumped to what is actually sold, difference being line loss (line loss includes water used by City operations, used but not billed) Gallons pumped - Gallons Sold 9,070,489 9,888,700 8,681,900 Gallons pumped 102,787,000 9% 93,396,000 11% 91,091,000 10% 39

47 SCHEDULE 4: KEY RATIOS OF FINANCIAL CONDITION SEWER UTILITY FUND Ratio Average Revenue (Regulatory Basis) per User: Compares existing revenue base (users include residential, commercial, industry, etc) for business funds (excludes transfers) relative to the change in users. Operating revenue 529, , ,751 Avg Number of Users 947 $ $ $ Total Expenditures per Capita: Compares expenditures for the business funds (includes transfer to sewer debt service fund only) relative to change in users. Operating expenditures 473, , ,877 Avg Number of Users 947 $ $ $ Operating Revenues / Operating Expenditures: Total revenues for business fund and total expenditures for business fund. (includes transfer to sewer debt service fund only) Operating revenue 529, , ,751 Operating expenditures 473, % 457, % 452, % 4. Operating Surplus (deficit) / Operating Revenues Percentage: Reflects the results of the business fund operations. Business fund receipts over (under) expenditures 55,816 78,559 63,874 Operating revenue 529, % 535, % 516, % 5. Business Fund Balance / Business Fund Revenues Percentage: Measures a jurisdictions capacity to withstand financial emergencies. Business fund Unencumbered Cash Balance 272, , ,689 Operating revenues 529, % 535, % 516, % 6. Business Fund Debt / Average number of users: Full faith and credit debt of the jurisdiction divided by the average number of users. Sewer fund has an outstanding KDHE Water Pollution control revolving loan with an issue date of 8/22/2000 and maturity date of 3/1/2022. Business fund debt 1,873,587 2,037,318 2,195,482 Avg Number of Users 947 $ 1, $ 2, $ 2, Debt service expense / Operating Revenues Percentage: Measures the level of debt service to total business fund revenues. Debt service 233, , ,417 Operating revenues 529, % 535, % 516, % 40