CITY OF MEADVILLE

ANNUAL FINANCIAL REPORT

DECEMBER 31, 2022

 CITY OF MEADVILLE

ANNUAL FINANCIAL REPORT

DECEMBER 31, 2022

TABLE OF CONTENTS

PAGE

Independent Auditors’ Report 1–2

Basic Financial Statements:

Government-Wide Financial Statements:

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

Fund Financial Statements:

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

Notes to Basic Financial Statements 9 – 16

 INDEPENDENT AUDITORS’ REPORT

To the Board of Aldermen

of the City of Meadville

Opinions

We have audited the accompanying financial statements of the governmental activities, business-type
activities, and each major fund (modified cash basis) of the City of Meadville (the City) as of and for the year
ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the
City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position (modified cash basis) of the governmental activities, the business-type activities, and each
major fund of the City as of December 31, 2022, and the respective changes in financial position (modified
cash basis) for the year then ended in accordance with the basis of accounting as described in Note 1.

Basis for Opinions

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

Responsibilities of Management for the Financial Statements

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

In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going
concern for twelve months beyond the financial statement date, including any currently known information
that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements

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

In performing an audit in accordance with generally accepted auditing standards, we:

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

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

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

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

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

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

Basis of Accounting

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

April 28, 2023

2
 CITY OF MEADVILLE
STATEMENT OF NET POSITION - MODIFIED CASH BASIS
December 31, 2022

Primary Government
Governmental Business-type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 253,571 $ 602,807 $ 856,378
Restricted assets:
Cash and cash equivalents - 360,659 360,659
Total assets 253,571 963,466 1,217,037

LIABILITIES
Current liabilities:
Payroll withholdings payable 185 1,319 1,504
Other payables - 1,870 1,870
Total liabilities 185 3,189 3,374

NET POSITION
Restricted for:
Repairs and maintenance - 360,659 360,659
Highways and streets 82,028 - 82,028
Unrestricted 171,358 599,618 770,976
Total net position $ 253,386 $ 960,277 $ 1,213,663

See accompanying notes to the basic financial statements.

3
 CITY OF MEADVILLE
STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS
For the Year Ended December 31, 2022

Net (Expense) Revenue and Changes in Net Position

Program Revenue Primary Government
Operating Capital Grants
Charges for Grants and and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Primary government:
Governmental activities:
General government $ 25,811 $ - $ 44,413 $ - $ 18,602 $ - $ 18,602
Highways and streets 19,539 762 - - (18,777) - (18,777)
Total governmental activities 45,350 762 44,413 - (175) - (175)
Business-type activities:
Electric 320,614 337,124 - - - 16,510 16,510
Water 176,232 118,114 - - - (58,118) (58,118)
Sewer 1,076,892 73,552 885,556 - - (117,784) (117,784)
Trash 26,534 29,124 - - - 2,590 2,590
Total business-type activities 1,600,272 557,914 885,556 - - (156,802) (156,802)
Total $ 1,645,622 $ 558,676 $ 929,969 $ - (175) (156,802) (156,977)

General revenues:
Taxes
Property taxes 14,314 - 14,314
Franchise taxes 8,939 - 8,939
Motor vehicle fuel and license taxes 21,836 - 21,836
Debt proceeds - 178,360 178,360
Interest 7,883 259 8,142
Miscellaneous 6,131 18,363 24,494
Total general revenues 59,103 196,982 256,085
Change in net position 58,928 40,180 99,108

Net position - beginning 194,458 920,097 1,114,555

Net position - ending $ 253,386 $ 960,277 $ 1,213,663

See accompanying notes to the basic financial statements.

4
 CITY OF MEADVILLE
BALANCE SHEET - MODIFIED CASH BASIS
GOVERNMENTAL FUNDS
December 31, 2022

Total
Governmental
General Street Funds
ASSETS
Cash and cash equivalents $ 171,359 $ 82,212 $ 253,571
Total assets $ 171,359 $ 82,212 $ 253,571

LIABILITIES AND FUND BALANCES

Liabilities:
Payroll withholdings payable $ 1 $ 180 $ 181
Other payables - 4 4
Total liabilities 1 184 185

Fund balances:
Restricted for:
Highways and streets - 82,028 82,028
Unassigned 171,358 - 171,358
Total fund balances 171,358 82,028 253,386
Total liabilities and fund balances $ 171,359 $ 82,212 $ 253,571

See accompanying notes to the basic financial statements.

5
 CITY OF MEADVILLE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
MODIFIED CASH BASIS
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2022

Total
Governmental
General Street Funds
REVENUES
Taxes and franchise fees $ 23,253 $ 21,836 $ 45,089
Grants 44,413 - 44,413
County road payment and rock sales - 762 762
Interest 7,801 82 7,883
Miscellaneous 631 5,500 6,131
Total revenues 76,098 28,180 104,278

EXPENDITURES
General government 25,811 - 25,811
Highways and streets - 19,539 19,539
Total expenditures 25,811 19,539 45,350
Excess of revenues over expenditures 50,287 8,641 58,928

OTHER FINANCING SOURCES (USES)

Transfers in - 10,000 10,000
Transfers out (10,000) - (10,000)
Total other financing sources (uses) (10,000) 10,000 -
Net change in fund balances 40,287 18,641 58,928
Fund balances - beginning 131,071 63,387 194,458
Fund balances - ending $ 171,358 $ 82,028 $ 253,386

See accompanying notes to the basic financial statements.

6
 CITY OF MEADVILLE
STATEMENT OF NET POSITION - MODIFIED CASH BASIS
PROPRIETARY FUNDS
December 31, 2022

Total
Proprietary
Electric Water Sewer Trash Funds
ASSETS
Current assets:
Cash and cash equivalents $ 353,631 $ 141,109 $ 79,228 $ 28,839 $ 602,807
Total current assets 353,631 141,109 79,228 28,839 602,807
Non-current assets:
Restricted cash and cash equivalents - 360,659 - - 360,659
Total non-current assets - 360,659 - - 360,659
Total assets 353,631 501,768 79,228 28,839 963,466

LIABILITIES
Current liabilities:
Payroll withholdings payable 398 579 342 - 1,319
Other payables 1,396 474 - - 1,870
Total current liabilities 1,794 1,053 342 - 3,189
Total liabilities 1,794 1,053 342 - 3,189

NET POSITION
Restricted for repairs and maintenance - 360,659 - - 360,659
Unrestricted 351,837 140,056 78,886 28,839 599,618
Total net position $ 351,837 $ 500,715 $ 78,886 $ 28,839 $ 960,277

See accompanying notes to the basic financial statements.

7
 CITY OF MEADVILLE
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION -
MODIFIED CASH BASIS
PROPRIETARY FUNDS
For the Year Ended December 31, 2022

Total
Proprietary
Electric Water Sewer Trash Funds
REVENUES
Charges for services $ 337,124 $ 118,114 $ 73,552 $ 29,124 $ 557,914
Operating grants and contributions - - 885,556 - 885,556
Total operating revenues 337,124 118,114 959,108 29,124 1,443,470

OPERATING EXPENSES
Purchased services 243,927 2,987 168 24,796 271,878
General and administrative 8,169 12,865 8,169 1,724 30,927
Personnel services 18,080 23,786 15,303 - 57,169
Contractual services 22,337 17,256 16,825 - 56,418
Repairs and maintenance 26,822 97,992 1,021,838 14 1,146,666
Materials and supplies 1,010 1,050 - - 2,060
Miscellaneous 269 442 442 - 1,153
Debt service:
Principal and interest - 19,854 14,147 - 34,001
Total operating expenses 320,614 176,232 1,076,892 26,534 1,600,272
Operating income (loss) 16,510 (58,118) (117,784) 2,590 (156,802)

NON-OPERATING REVENUES (EXPENSES)

Debt proceeds - 89,180 89,180 - 178,360
Interest income - 177 82 - 259
Miscellaneous revenue 18,318 35 10 - 18,363
Total non-operating revenues 18,318 89,392 89,272 - 196,982
Net income 34,828 31,274 (28,512) 2,590 40,180
Total net position - beginning 317,009 469,441 107,398 26,249 920,097
Total net position - ending $ 351,837 $ 500,715 $ 78,886 $ 28,839 $ 960,277

See accompanying notes to the basic financial statements.

8
 CITY OF MEADVILLE

NOTES TO FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

A. Reporting entity

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

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

B. Government-wide and fund accounting

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

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

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

The City uses funds to report its financial position and results of its operations in the fund financial
statements. Fund accounting is designed to demonstrate legal compliance and to aid financial management by
segregating transactions related to certain government functions or activities. A fund is a separate accounting
entity with a self-balancing set of accounts. Funds are classified into three categories: governmental,
proprietary, and fiduciary. The City had no fiduciary funds as of December 31, 2022.

9
The City reports the following major governmental funds:

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

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

The City reports the following major proprietary funds:

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

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

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

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

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

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

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

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

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

D. Budgets

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

10
E. Cash and cash equivalents

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

F. Capital assets

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

G. Security deposits payable

As a result of using the modified cash basis of accounting, security deposits are recorded as revenues at the
time payment is received, and expenditures at the time the deposit is returned to the customer. As such, no
liability is reported in the government-wide or proprietary fund financial statements. As of December 31,
2022, the City holds cash totaling $28,049 in the form of electric and water security deposits.

H. Long-term debt

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

I. Equity

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

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

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

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

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

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

The City did not have any nonspendable, committed, or assigned fund balances as of December 31, 2022.

11
In the government-wide and proprietary fund financial statements, equity is displayed in two components as
follows:

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

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

J. Compensated absences

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

K. Estimates

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

L. Subsequent events

Events that have occurred subsequent to December 31, 2022, have been evaluated through April 28, 2023,
which is the date the financial statements were available to be issued.

2. CASH AND CASH EQUIVALENTS

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

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

Deposits, categorized by level of custodial risk, were as follows as of December 31, 2022:

Cash and
Cash Petty
Equivalents Cash Total
Bank balance
Insured by the FDIC $ 500,000 $ - $ 500,000
Collateralized with securities pledged by the
financial institution in the government's name 718,609 - 718,609
$ 1,218,609 $ - $ 1,218,609

Carrying value $ 1,217,037 $ - $ 1,217,037

12
A reconciliation of cash and cash equivalents as shown in the government-wide statement of net position is as
follows:

Cash and cash equivalents $ 856,378

Restricted assets:
Cash and cash equivalents 360,659
Total $ 1,217,037

3. RESTRICTED CASH AND FUND BALANCE/NET POSITION

As of December 31, 2022, cash and fund balance/net position were restricted for various uses as follows:

Fund Balance/
Cash Net Position
Street Fund
Restricted for highways and streets $ - $ 82,028
Water Fund
Restricted for repairs and maintenance 360,659 360,659
$ 360,659 $ 442,687

4. PROPERTY TAXES

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

The City is subject to a calculated levy ceiling for general governmental purposes as the taxing limitation.
The ceiling for 2022 was $0.3705 per $100 assessed valuation. The City’s assessed valuations and tax levies
per $100 assessed valuation of those properties are as follows:

Assessed valuation:
Real estate $ 2,357,242
Personal property 1,852,331
$ 4,209,573

Tax rate per $100 assessed valuation:

General Fund $ 0.3705

13
5. LONG-TERM DEBT

The following is a summary of the City’s long-term debt transactions for the year ended December 31, 2022:
Beginning Ending Amount Due
Balance Additions Retirements Balance in One Year
Proprietary funds:
Revenue bonds 2010 $ 161,400 $ - $ 14,800 $ 146,600 $ 14,800
Revenue bonds 2020 199,580 178,361 11,000 366,941 8,841
$ 360,980 $ 178,361 $ 25,800 $ 513,541 $ 23,641

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

Based on the assessed valuation as of January 1, 2022, of $4,209,573, the constitutional total general
obligation debt limit was $841,915, which provides a general obligation debt margin of $841,915.

Revenue Bonds

In 2010, the City issued Combined Waterworks and Sewerage System Revenue Bonds (State of Missouri –
Direct Loan Program) Series 2010 not to exceed $622,700 for the purpose of maintaining the water system of
the City. As of December 31, 2022, $308,708 had been drawn.

The City has pledged future utility customer revenues, net of current specified operating expenses, to repay
the bonds when fully drawn. Proceeds from the bonds provided financing for the construction and
maintenance of water facilities. The bonds are payable solely from utility customer net revenues and are
payable through 2031. Net revenues available for debt service are not to be less than 110% of the amount
required to be paid annually of principal and interest. Net revenues for 2022 are over 157% of the annual
principal and interest payments made in 2022. The total principal and interest remaining to be paid on the
bonds is $156,512. Principal and interest paid for the current year and total customer net revenues were
$19,854 and $31,239, respectively.

In 2020, the City issued Combined Waterworks and Sewerage System Revenue Bonds (State of Missouri –
Direct Loan Program) Series 2020 not to exceed $494,000 for the purpose of funding grant matching
requirements related to wastewater system improvements. As of December 31, 2022, $377,941 had been
drawn. The total principal and interest remaining to be paid on the bonds is $395,632. Principal and interest
paid for the current year was $14,147.

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

14
Revenue bonds are comprised of the following issues:

Final Balance
Original Issued Interest Maturity December 31,
Amount Amount Rate Date 2022
Combined Waterworks and
Sewerage System (Series 2010) $ 622,700 $ 308,708 1.38% 7/1/2031 $ 146,600
Combined Waterworks and
Sewerage System (Series 2020) 494,000 377,941 0.81% 1/1/2041 366,941
$ 513,541

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

Year Ending December 31 Principal Interest Total

2023 $ 23,641 $ 3,458 $ 27,099
2024 33,400 4,632 38,032
2025 34,100 4,270 38,370
2026 34,400 3,903 38,303
2027 35,100 3,534 38,634
2028-2032 167,300 11,904 179,204
2033-2037 106,300 5,608 111,908
2038-2041 79,300 1,294 80,594
Total $ 513,541 $ 38,603 $ 552,144

6. INTERFUND TRANSACTIONS

During the year ended December 31, 2022, a $10,000 transfer from the General Fund to the Street Fund was
approved by the Board of Aldermen.

7. COMMITMENTS AND CONTINGENCIES

A. Risk Management

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

B. Solid Waste Contract

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

15
C. Liberty Utilities Contract

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

16