The URL can be used to link to this page

Home My WebLink About2003-12-30 - Agendas - Final Final Agenda Special City Council Meeting Public Hearing December 30, 2003 A special meeting of the Fayetteville .City Council will be held on December 30, 2003 at 4:30 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. A. CONSENT: B. OLD BUSINESS: A Public Hearing concerning the adjustment of Sewer Rates 1 . Amend § 51. 137 Monthly Sewer Rates: An ordinance amending § 51 . 137 of the Code of Fayetteville, to adjust sewer rates. This Ordinance was [eft on the first reading at the December 16, 2003 City Council meeting. C. NEW BUSINESS: Tentative Agenda Special City Council Meeting Public Hearing December 30, 2003 A special meeting of the Fayetteville City Council will be held on December 30, 2003 at 4:30 p.m . in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. A. CONSEN"1: B. OLD BUSINESS : A Public Hearing concerning the adjustment of Sewer Rates 1 . Amend § 51 . 137 Monthly Sewer Rates : An ordinance amending § 51 . 137 of the Code of Fayetteville, to adjust sewer rates. This Ordinance was left on the first reading at the December 16, 2003 City Council meeting. C. NEW BUSINESS : Fayetteville City Council Meetino December 30, 2003 • Subject : Motion To: Motion By: Seconded: Rhoads Davis Lucas Jordan Reynolds Thiel ✓ Cook MarrAOOIO Mayor Coody Subject : A Motion To: /tedl Motion : Seconded: Rhoads 3 Davis Lucas Jordan f Reynolds Thiel Cook ( 1k5 Marr `µ Cms " Mayor Coody �� l • i -..r, \. _� ; ,. it`, _ . , , . • ? , _ . �., _ I - ,. � ;e �1w=9-il � n � . . � � �, I 1 ,a � \ __ � �\ + '�\t � Special City Council Meeting and Public Hearing 12/30/2003 Speaker Mayor Coody Opened the Public Hearin Kit Williams Mayor Coody Sondra Smith Roll Call Kit Williams Mayor Cood Geary Lowery Kit Williams Mayor Cood Kit Williams Geary Lowery Mayor Cood Steve Davis Mayor Cood Geary Lowery Mayor Cood Heather Woodruff Dumas Mayor Cood Teresa Clark Mayor Cood Teresa Clark Mayor Cood Teresa Clark Mayor Cood Teresa Clark Mayor Cood Emie Penn Mayor Cood Kit Williams Mayor Cood Alderman Cook Kit Williams Mayor Cood Alderman Marr Kit Williams Alderman Marr Kit Williams Alderman Marc Kit Williams Mayor Cood Alderman Marc Mayor Cood Alderman Marr Mayor Cood Kit Williams Alderman Rhoads Kit Williams Alderman Marc Kit Williams Yes Alderman Marr Mayor Cood Alderman Thiel Kit Williams Mayor Cood Kit Williams Why don't you come up here. Special City Council Meeting and Public Hearing 12/30/2003 Speaker Steve Davis Alderman Thiel Steve Davis Yes Alderman Thiel Why Steve Davis Alderman Reynolds Mayor Cood Alderman Reynolds Mayor Cood Alderman Jordan Steve Davis Alderman Jordan Mayor Cood Alderman Jordan Mayor Cood Alderman Jordan Right Mayor Cood Alderman Jordan Dealing with Steve Davis Alderman Jordan Alderman Reynolds Steve Davis Alderman Reynolds Steve Davis No sir Alderman Thiel Steve Davis Alderman Thiel Steve Davis Mayor Coody Your bill Alderman Jordan Mayor Cood Kit Williams Mayor Cood Steve Davis I don't know Mayor Cood Steve Davis Alderman Jordan Kit Williams Steve Davis That is correct Mayor Cood Alderman Thiel Mayor Cood Alderman Mar What day was that Mayor Cood Steve Davis Mayor Cood Kit Williams Mayor Cood Kit Williams Mayor Cood Kit Williams Alderman Thiel Mayor Cood Alderman Thiel Mayor Coody Ok, just checking Special City Council Meeting and Public Hearing 12/30/2003 Speaker Kit Williams Alderman Thiel Kit Williams Alderman Marr Alderman Marr Moved to go to the third and final reading Alderman Cook Seconded the motion Alderman Marr Kit Williams Alderman Marr Kit Williams Alderman Marc I heard that Steve Davis Kit Williams Steve Davis Alderman Mar Mayor Coody Excuse me Alderman Mar Mayor Cood Kit Williams Mayor Cood Sondra Smith Roll Call Kit Williams Mayor Cood Alderman Reynolds Mayor Cood Kit Williams Mayor Cood Alderman Reynolds Mayor Cood Kit Williams Mayor Cood Alderman Reynolds Mayor Cood Alderman Mar Alderman Reynolds Alderman Rhoads Mayor Cood Alderman Jordan Mayor Cood Sondra Smith Roll Call Mayor Coody Meeting Ad'oumed 5:30 P.M. FAYETTEVILLE THE CT' OF FAYE TEW.LE. ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: Mayor Coody and Fayetteville City Council THROUGH : Hugh Earnest, Chief Administrative OfficerIA FROM : Stephen Davis, Finance & Internal Services Director DATE: January 12, 2004 Subject: Responses to Comments Made at the Wastewater Rate Public Hearing — December 30, 2003 At the beginning of the public hearing the Mayor announced that this was a public hearing and a transcript of the proceedings would be made. Staff requested a week to ten ( 10) days to draft any written responses that would be needed. The transcript of the meeting was received on Thursday, January 8, 2004. The order of the remaining report is in the comments and staff response order. Comment : Does the alderman (on the Water & Sewer Committee in 200 1 ) recall an elderly rate discussion? Response: Affordability options were presented to the Water & Sewer Committee as part of the Benchmarking Report from Black & Veatch in August 2003 . Staff does not recall any discussion of the affordability report during the Water & Sewer Committee meetings. City Council discussed an elderly rate discount program for Solid Waste and did not to enact one. If the Council wishes to further examine any rate discount program it should probably apply to all utility rates under the City's control (water, sewer and solid waste). A copy of the affordability report and presentation can be made available to the full Council, if so desired. Comment: The City is required by ordinance 51 . 137(4)(b) to notify sewer customers annually in conjunction with a regular bill of the rates being charged for operations, maintenance and replacement (OM&R) charges for the wastewater treatment works. Why haven 't we received this (notification)? Response: Staff has developed a notification that complies with 51 . 137(4)(b) and will be providing the notification as a utility bill insert over the next six weeks. Comment: Disagree with the methodology used by Black & Veatch, disagree with the rate-of - return and how it is currently calculated, disagree that Fayetteville has lived-up to the current contract with Farmington, request a place on a future City Council meeting to discuss current rates charged to Farmington, important for Fayetteville and Farmington to be good partners. Response: Mayor Coody drafted and mailed a letter to Farmington that outlines a proposed dialogue framework to address the issues presented. Comment: What is the Sewer Customer Service Charge and why is it increasing along with the sewer volume charge? Response: The sewer customer service charge is the charge that recovers the customer related cost. Representative costs include those that are associated with the number of customer bills, a portion of the meter reading, billing, collection expense, etc. as well as that portion of infiltration and inflow (I&I) that is allocated based on the number of customers. The volume portion of I&I allocated to relative volume is recovered through the volume (per 1000) charge. Cost associated with meter reading, billing and collection are allocated between water & sewer because metered water usage is the basis for sewer charges. Wastewater operation, maintenance and replacement (OM&R) costs have and will continue to increase as service improvements materialize. The overall cost increase predicted for the wastewater system is 29.5% and requires a 9% rate adjustment annually for 2004, 2005 and 2006 under the across-the-board rate adjustment enacted. In order for the wastewater system to generate sufficient monies under the across- the-board method the customer service charge, volume (per 1 ,000 gallon) charge and the extra strength charges must all be adjusted 9% annually. Increases in all of these rate elements is necessary to provide the wastewater system with sufficient monies to fund operations, debt requirements, maintenance, replacement as well as any capital improvements funded with system resources. V NOTICE OF PUBLIC HEARING The Fayetteville City Council will conduct a public hearing on December 30, 2003 , at 4 : 30 P. M . on the new sewer rate ordinance §51 . 137 of the Fayetteville Code. The proposed readjusted rates are shown below: 51 . 137 Monthly Sewer Rates (A) Monthly sewer rates. All monthly sewer charges shall be calculated from the customer's monthly water usage. The following monthly rates are hereby fixed as rates to be charged for sewer services: ( I ) Monthly sewer quantity charge: Table E- 1 Monthly Sewer Quantity Charge - Usage Rates Per 1 ,000 Gallons Beginning February 9, 2004 ( * Across-the- Board Percentage; * *Cost of Service Methodology) Residential* $ 2.61 Commercial/Industrial* 2.04 Outside city limits" 6.03 Elkins" 5.24 Table E-2 Monthly Sewer Quantity Charge - Usage Rates Per 1 ,000 Gallons After December 31, 2004 Residential* $ 2.84 Commercial/Industrial* 2.22 Outside city limits** 6.57 Elkins* * 5.71 Table F-3 Monthly Sewer Quantity Charge - Usage Rates Per 1 ,000 Gallons After December 31, 2005 Residential* $ 3. 10 Commercial/Industrial* 2.42 Outside city limits** 7. 16 Elkins** 6.22 ( 1 ) Monthly service charge: Table F-1 Monthly Sewer Service Charge Table F-2 Monthly Sewer Service Charge Beginning February 9, 2004 After December 31, 2004 Meter Size Inside City Outside Cityt Meter Size Inside City Outside Cityt 5/8 inch $ 8.72 $ 8.72 5/8 inch $ 9.50 $ 9.50 3/4 inch 10.08 11 .87 3/4 inch 10.99 12.94 finch 11 .34 16.28 finch 12.36 17.75 1 %z inch 15.85 28.90 1 '/z inch 17.27 31 .50 2 inch 21 . 10 41 .51 2 inch 23.00 45.25 3 inch 46.31 97.02 3 inch 50.77 105.75 4 inch 77.51 160.09 4 inch 84.49 174.50 6 inch 149.26 317.7 8 6 inch 163 .64 346.38 8inch 232.26 475.47 8 inch 253. 16 518.26 Table F-3 Monthly Sewer Service Charge After December 31, 2005 Meter Size Inside City Outside Cityt 5/8 inch $ 10.36 $ 10.35 3/4 inch 11 .98 14. 10 1 inch 13.47 19.35 1 '/z inch 21 .99 34.33 2 inch 31 .44 49.32 3inch 73.01 115.27 4 inch 120.26 190.21 6 inch 238.37 377.56 8inch 356.48 564.90 tCost of Service Methodology required by contract. (B) Determination of charge for domestic customers. In the case of domestic customers, the average monthly water consumption for the preceding months of December, January, and February shall be computed separately for each customer, and a uniform monthly charge for each customer shall be determined by applying the schedule of rates set out in subsection (A) of this section to such average monthly water consumption. In the case of a domestic user for whom a uniform monthly charge has been established and who moves to a new location the same uniform monthly charge shall apply at the new location. In - the case of new domestic users, the schedule of rates shall be applied to monthly water usage until an average monthly water ' consumption his been established. This methodology hall not apply to multi- family structures containing five (5) or more units in a contiguous building. (C) Deterinination ojcharge for commercial and industrial customers. In the case of commercial and industrial customers the monthly sewer charge shall be determined by applying the schedule of rates prescribed in subsection (A) of this section to the monthly water usage of such customers. In the event that a commercial or industrial customer discharging waste into the city's sanitary sewer system produces evidence to the water and sewer superintendent demonstrating that a substantial portion of the total amount of water from all sources used for all purposes does not reach the sanitary sewer which is in excess of' the factors used in establishing the rates in subsection (A) of this section, an estimated percentage of total water consumption to be used in computing charges may be established by the water and sewer superintendent. The factors used in establishing said rates are on file in the office of the water and sewer superintendent and are incorporated herein by reference thereto. Any rate so adjusted by the water and sewer superintendent shall be effective for a 12-month period beginning with the billing for the month when rates adjudged hereby go into effect. ( D) Extra Strength Surcharge. For all commercial and industrial customers whose wastewater discharge is greater than 300 mg/I of BODS and/or TSS, the City shall levy an Extra Strength Surcharge for each parameter in accordance with the following unit charges: Beginning After After February 9, 1004 December 31, 1004 December 31, 1005 ( 1 ) Extra Strength BODS --- S0.2246/lb. 0.2449/16. 0.2669/lb. (2) Extra Strength TSS ----- $0. 1 123/16. 0. 1224/16. 0. 1334/lb. Extra Strength Surcharges shall be billed monthly and shall be computed on the basis of water meter reading (wastewater discharge volume). CITY OF FAYETTEVILLE, ARKANSAS PRO FORMA GASB 34 FINANCIAL STATEMENTS For the Year Ended December 31 , 2002 Prepared by DEPARTMENT OF FINANCE AND INTERNAL SERVICES Stephen L. Davis Finance and Internal Services Director Marsha Farthing Accounting Manager City of Fayetteville, Arkansas • Statement of Net Assets December $1, 2002 - Primary Government Component Units Governmental Buslness-type Advertising Activities Activities Total Library & Promotion ASSETS Cash $ 781 ,097 $ 394,288 $ 1,1751385 E $ Investments 79,348,177 27,724,968 107,073,145 Accounts Receivable 1 ,934,813 3,501,944 5,436,757 Accrued Interest 365,955 163,448 529,403 Due from other funds 176,487 (176,487) Due from component unit 65.387 65.387 Due from other governments 3,085,569 252,251 3,337,820 Inventories 130,096 572,868 702,964 Prepalds 413,697 56,812 470,509 Other assets 137,517 137,517 Restricted Assets: Investments 5,742,400 2,645,273 8,587,673 Accrued Interest 8,103 8,856 16,959 Due from other governments 769,229 20,336 789,565 Prepaid expenses 6,215 6,215 Capital assets ( net of accumulated depreciation Lend 10,270,064 10,735,877 21 ,005,941 - Buildings 16,072,505 21 ,072,097 37,144,602 Improvements other than buildinps 2,063,380 7,656,425 9,719,805 Machinery, equipment and vehicles 9,931,815 95,376,286 105,308,101 Infrastructure 3,433,552 3,433,552 Construction in progress m 6,429,017 6,429,017 UnaoNzed bond premium (342,827) (342,827) Unamortized bond Issuance costs 216.370 185.961 402.331 Total assets 134,603.386 176,828 435 311,429 821 LL431LMES Accounts pavable 2.916.178 1.844.020 4.760.198 Accrued expenditures/expenses 1 ,969,622 739,609 2,709,231 Internal balances 12 111 12 111 Due to primary government Due to other governments 81 ,212 81 ,212 Customer deposits 89,096 1 ,469,612 1 ,558,708 Deferred revenue 2,139,477 65,839 2,205,316 Payable from restricted assets: Accounts payable 59,672 59,672 Accrued Interest 326,154 326,154 Bonds payable - current maturities 7,308,110 11355,000 8,663,110 Noncurrent Uablllties: Bonds payable 18,116,890 21,410,000 39,526,890 Compensated absences 2,282,170 2,282,170 Unamortized bond discounts (748,375) (748,375) Total Ilabiikies 34,914 866 26,521 531 61,436 397 NET ASSETS Invested In capital assets, net of related debt 16,346,316 118,504,702 134,851,018 Restricted for: _ Debt service 6,758,359 1,488,458 8,246,817 Capital projects 61 ,932,437 61 ,932,437 Other purposes 4,255,428 4,255,428 Unrestricted 10,395,980 30.311 744 40,707t724 Total net assets $ 99,688,520 $ 150,304,904 $ 249,993,424 $ $ The notes to the financial statements are an Integral part of this.statement. 1 w N N � arv � n M w o o M n m QR n m A z by ym� SS mw m � � mn o ri gg T.Cpi r v m o V V r 75n �i a meS � y a Q y � HIM � Mcsi C4 cc; � � � � (+�JQ2 ♦ vi p r� .- g 6 gpE w N F$ S FS vi N (7 .GN ~ tS aC406 < q N . � GBLL wm CI O N h m N N N m ry y yp y p}y p La YyO q E fC.11 P 2 City of Fayetteville, Arkansas • •1 Balance Shoot Governmental Funds December 31, 2002 Debt Service _ Capital Projects Wastewater Imp Library Sales Tax General Sales Tax Bond Construction Construction ASSETS Cash $ 639,050 $ $ $ 3,039 Investments 9,893,072 15,188,919 17,940,075 Accounts receivable 539,282 1 ,350,000 24,301 Accrued Interest 40,536 89,031 105,157 Due from other funds 276,725 Due from component units 65,332 Due from other governments 1 ,100,659 1 ,570,701 Inventories 1 ,694 Prepaids 108,765 Restricted assets: Investments 5,742,400 Accrued Interest 7,917 Due from other governments 769,229 Other assets 137,517 Total assets E 12,667,115 $ 6,519,546 E 16,627,950 $ 19,780,790 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable 478,243 1 ,034,466 . 1,022,466 Accrued expenditures 1,646,252 Due to other funds 180,362 136,020 Due to other governments Customer deposits Deferred revenue 1,667 767 471,710 Total liabilities _ 3,972624 11034466 1 ,630196 Fund balance: Reserved for. Prepalds 106,765 Debt service 6,519,546 Drug law enforcement Unreserved, reported in General fund 8,585,726 Special revenue Capital proJect funds. 15.593,484 18.150,594 Total fund balance 8.690.491 _ 6.519,546 15.593,484 18.150 594 Total liabilities and fund balance $ 12,667,115 $ 6,519.546 $ 18,627,950 $ 19,780,790 The notes to the financial statements are an integrel part of this statement. 3 Capital pro Jscts Nona wjor Total u Waswabr Govamnni ntal Governmental Imp Constnrctlon Funds Funds $ S 138,008 S 780,097 23,613.950 8,682,785 75,318,801 21,161 1,934,744 56.719 50,894 342,337 123,293 57, 190 459.208 55 65,387 414,209 3,085,569 4,731 6.425 238,627 347,392 5,742,400 186 8.103 769.229 _ 137,517 $ 23,793,962 $ 9,607.846 S 88,997,209 261,652 2,796,827 199,306 1 ,845,558 18,269 334,651 81,212 81 ,212 89.096 89,096 21139,477 649,535 7.286 821 2,564 111,329 238,813 6.758.359 67, 109 67,109 8,585.726 4,255 428 4,255,428 23,793,962 41394,397 61 ,932 437 23,793,962 8,958 311 _ 81 ,710,388 $ 23,793.962 S 9,607,846 Amounb reported for govemnl8ntal activities in the statement of net assets are different becauso: Capital assets used In governmental activities are not 8nanclel resources and are not reported in the funds 36,207,913 trdernet service funds ars used by management to cherpe the costs of fleet management to individual funds. The assts end liablltles of the internal service hard are Included In the governmental activities in the statement of net assets. 9,603,846 Long lean liabilities are. Including bonds payable, are not due and payable In the cunent penod and are therefore not reported in the funds (27,833,627) Not assets of governmental activities $ 99,688,520 ' The notes to the financial statements are an ir0ogral pan of Inas stalemenl. 4 City of Fayetteville. Arkansas • Combined Statement of Revenues, Expen0res, and Changes In Fund Balances Governmental Funds For the Year Ended December 31, 2002 Debt Service _ ' Capital Projects Wastewater Imp Library Sales Tax General Sales Tax Bond Construction Construction Revenues•. Sales tax $ 8,933,689 6,185,701 $ 4,203,495 $ 12,451,096 Property tax Franchise tax 3,057,981 69,591 Licenses and permits 842,906 Intergovernmental 1,775,444 Charges for services 1,184,515 554'841 Fines and forfeitures 1 ,253,452 498,330 Investment earnings 316,342 43,561 617,888 654,788 Net Increase (decrease) In the fair value of Investments 61,256 Contributions 152,371 178,230 Other 000 1,350, 886,754 _ 35.147 Total revenues 18,312 339 6,229,262 _ 6r323,754 14,461 823 Expenditures: Current: General government 2,338,690 Finance and Internet Services 1,486,573 Police 7,358,946 Fire 4,979,362 Public works 480,356 Urban Development 3,212,868 General Services 1 ,395,577 Debt Service 964 797 . Capital Outlay 31737,882 8618 814 Total expenditures 21 ,252 372 964,797 3,737 882 8,618,814 Excess (deficiency) of revenues over (under) expenditures _ (21940,033) 5,264 465 2,585 872 5,843,009 Other Rn incing sources (uses): Bonds Proceeds Bond Issue Costs Transfers in 3,018,875 1 ,255,081 Transfers out (1 ,082,074) - (31142,013) Total other financing sources (uses) 1,936 801 1 ,255 081 (3,142,013) Net change In fund balances (1,003,232) 6,519,546 2,585,872 2,700,996 Fund balances, beginning of year 9,697 723 13.007 612 15,449,598 Fund balances, end of year $ _ ' 8,694,491 $_ 6,519,546 $ 15.593,484 $ _ 18,150,594 The notes to the financial statements are an Integral part of this statement. 5 _CaplGl7ropcn Nonmajor Tow Washwabr Governmental GovammariW Imp Construction Funds Funds $ S 1,489,011 S 33,262,992 89,591 3,057,981 842,906 4,672,519 7,002,604 512,527 2,195,372 1 ,253.452 220,907 349,074 2,202.560 21 ,969 86,059 499,885 1 ,350,000 7,758 929,659 242,876 71116,948 52,687 002 2,338,690 1 ,486.573 433,567 7,792.513 4,979.362 3.528.06B 4,008.424 2.798.422 6.011.290 172,606 1 ,568,183 409,215 1 ,374,012 336,992 500 12,694 188 336,992 7,342,378 42.253 235 (94, 116) _ (225,430) 10,433,767 25,388,106 25.388,106 (244,947) (244,947) . 451 ,803 4,725,759 (1,255,081 ) _ (612101 ) (5 540 269) 23,888 078 390,702 24,328 649 23,793,962 165,272 34,762.416 8,793 039 _ 46,947 972 S 23,793,962 $ 8,958,311 S 81,710,388 The n0le9 to the financial statements are an Integral pan Of this statement. 6 City of Fayetteville, Arkansas• • Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities - Governmental Funds For the Year Ended December 31 , 2002 Amounts reported for the governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds. $ 341762,416 Governmental funds report capital outlays as expenditures. In the 8,9489488 statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. The net effect of various miscellaneous transactions involving capital assets, such as sales and donations, is to increase net assets. 114,375 Revenues in the statement of activities that do not provide current 169702 financial resources are not reported in the fund statements. The issuance of long term debt such as bonds and leases provides current financial resources to the governmental funds while the repayment consumes current financial resources. Neither transaction has any effect on net assets. Governmental funds reports the effect of issuance costs, premiums, discounts, and similar items when debt is issued however these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long term debt and related items. (249198, 159) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported in governmental funds. Internal service funds are used by management to charge the costs of (167,297) the fleet (Shop Fund) to the individual funds. The net revenue of certain activities of the Shop Fund is reported with governmental activities. 215, 173 Change in net assets of governmental activities. $ 19,6919698 The notes to the financial statements are an integral part of this statement. 7 Pity of Fayetteville, Arkansas • • General Fund Statement of Revenues, Expenditures, and Changes In Fund Balances - Budget and Actual For the Year Ended December 31 , 2002 Budgeted Amounts Variance with Final Budget Positive Original Final Actual Amounts (Negative) Revenues Sales tax $ 8,615,000 $ 8,615,000 Franchise tax $ 8,933,689 $ 318,689 3, 194,000 3,228,500 3,057,981 License and permits 821 .000 (170,519) Intergovernmental 1 ,566,500 821 ,000 842,906 27,906 1 ,747,657 1 ,775,444 Charges for services 1 . 197.500 27,787 1 , 197,500 1 , 184,515 (12,985) Fines and forfeitures 1 , 171 ,000 1 , 171 ,000 1 ,253,452 Investment earnings 422,000 422.000 82,452 316,342 (105,658) Not increase in the fair value of investments Other 61 .256 61 ,256 121 ,000 787.693 886,754 99.061 Total revenues 17, 108 000 _ 17,990 350 18.312 339 _ 321,989 Expenditures General government 3,333,920 2.853,079 2,338,690 Finance and Internal Services 1 ,273,258 514,389 Police 1 .688.644 1 ,486,573 202,071 6,922,891 7,565,139 7,358,946 206, 193 Fire 4500,665 4,986.757 Public works 499,939 4,979,362 7,395 , Urban Development 591 480,366 1 &5,235 3, 114,149 3,4427,27,567 3,212,868 214,699 General Services _ 1 ,392 467 1 ,599 948 11395,577 204,371 Total expenditures 21 ,037 289 22,786 725 21 ,252 372 1 ,534o353 Excess (deficiency) of revenues over (under) expenditures (3.929 289) _ (4,796 375) (2 940 033) 1 ,856 342 Other financing sources (uses) Transfers in 3,040,000 3,015,310 3,018,875 Transfers out _ (990,560) (11116,209) 3.565 (1 082 074) _ 341135 Total other financing sources (uses) 2,049 440 11899, 101 - _ 1,936 801 _ 372700 Net change in fund balance (1 879 849) (21897P274) (1,003,232) _ - 1 094 042 Fund balance, beginning of year 9,697,723 9,697 723 _ 9,697 723 Fund balance, end of year $ � 7'817'874 ,8� 1 q $ ® $ 8,694,491 $ 1 ,894,042 The notes to the financial statements are an Intergral part of this statement. 8 City of Fayetteville, Arkansas • • . Statement of Not Assets Proprietary Funds December 31, 2002 Town Solid Water ASSETS Center Waste and Sewer Current assets: Cash $ 107 $ 19,888 $ 370,854 Investments 3,446,013 21,7233264 Accounts receivable 661,813 2,781 ,054 Accrued Interest 20,199 127,332 Due from other funds 70,360 2,731 Due from other governments Inventory 62,323 485,565 Propald expenses and other assets 11160 34,906 . Total current assets 107 41281,756 25,525 706 Noncurrent assets: Restricted assets: Investments 589,379 1,762, 182 Accrued Interest 1,869 5,736 - Due from other governments Prepaid expenses Unamonlzed bond Issue cost 33,211 146,379 Total restricted assets 624,459 1,814 2g7 Capital assets: Land 151,158 99,124 6,469,548 Buildings 9,193,995 2,579,768 9,323,668 Improvements other than buildings 93,862 129,690,126 Machinery, equipment and vehicles 248,596 33,257,141 Construction In progress 2;865 3,738,112 Less accumulated depredation (551 ,639) (727,278) (67,749 671 ) Total capital assets 8,793,514 2,296,935 114,728,944 Total noncurrent assets 9,417,973 2,296 935 116,643,241 Total assets 9,418,080 6,578,691 142,168.947 LIABILMES Current liabilities: Accounts payable 662 679,312 738.832 Accrued expenses 264,330 416,064 Due to other funds 12,323 247,970 Customer deposits 1,469,612 Deferred revenue 27,716 Total current liabilities 662 955.965 2,900 194 Current liabilities payable from restricted assets: Accounts payable 59,422 Accrued Interest 73,396 243,613 Current maturity of revenue bonds 801000 935,000 Total current liabilities payable from restricted assets 212,818 1,178 613 Noncurrent liabilities: Bonds payable 8,540,000 14,510,000 Unanortized bond discounts (47 143) (696,109) Total noncurrent liabilities 6,492,857 13,813,891 Total liabilities 6,706,337 955,965 17,892,698 NET ASSETS Invested In capital assets, net of related debt 2,173,514 2,296,935 99,283,944 Restricted for debt service 377,769 587,076 - Unrestricted 160,460 31325791 24,4050229 Total net assets $ 2,711 ,743 $ _ 5,622,726 $ 124,276,249 The notes to the financial statements are an Integral part of this statement 9 Nonmejor Total Internist Enterprise Funds Enterprise Funds Servlcs Fund S 3,439 S 394,288 S 1.000 2,715,555 27,884,832 4.029.376 59,077 3.501 ,944 69 15.917 163,448 23,618 10,811 83,902 39.819 252,251 252,251 24,980 572,868 123.671 20,746 56812 66,305 3. 102.776 32,910,345 4,283 858 493,712 2,845.273 1,251 8,856 20,336 20,336 6,215 6.215 6.371 185.961 527.m5 3,066,641 4,014,824 10,734,654 16,256 16,512, 182 37,609,631 885.067 5.296.610 135,080,598 804.172 34.309.909 17,806.887 2,688,040 6,429,017 (13865519) (82894107) (13144807) 15,450 309 141,268 702 5,563,403 15.978 194 144.336 343 5.563 403 19080,970 177,246,688 9,847,261 425,214 1,844,020 119.351 59.215 739,609 124,064 96 260,389 1,469,612 38,123 65 839 522,648 4,379469 243,415 250 59.872 9,145 328,154 340.000 1.355 000 349,395 1.740 826 0 360,000 21,410,000 (5,12a (748 375) 354,877 _ 20.661 625 0 1,228920 _ 26,781920 243.415 14,750.309 118,504,702 5,563,403 523,613 1 ,488458 2.580128 30.471608 4.040443 S 17,854,050 150.464,768 S 9.603,846 Adjustmonl to reflect consolidalion Of internal sOrvice fund ratted to enlerprise funds (159864) Net Assets S 150.304,904 10 City of Fayetteville, Arkansas S • Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Assets For the Year Ended December 31 , 2002 Town Solid Water Center Waste Sewer Operating revenues: Solid waste fees $ $ 5,475,126 $ Water services 11 ,016,685 Sewer services 8,929,779 FBO services Rents and leases Shop charges Other Total operating revenues 57475,126 19,946,464 Operating expenses: Operations and administration 5,141 2,4859972 Solid waste services 5,758,680 Water supply 4,319,415 Water transmission 1 , 190,411 Sewer colloction 1 ,185,122 Wastewater treatment 4,234,671 Customer services 1 ,662,805 Landside operations Airside operations Fixed based operations Depreciation 367,760 135,965 32881891 Total operating expenses 372,901 5,894,645 18,960,287 Operating Income (loss) (372901 ) (419,519) 986, 177 Nonoperating income (expense): Intergovernmental 23,441 268,700 State tourist taxes Interest expense and fees (305,928) (592,878) Interest income 14,578 135,862 858,731 Net Increase (decrease) in fair value of investments 32,539 218,637 Other 1 ,462 234,239 Total nonoperating income (expense) (291 ,350) 193,304 987.429 Income before contributions and transfers (664,251 ) (226,215) 1 ,973,606 Capital contributions 3,754,498 Transfers in 372,970 Transfers out (353,928) Change In net assets (6459209) (226,215) 5,728, 104 Total net assets, beginning of year 31356,952 5P8481941 118,548 145 Total net assets, end of year $ 2,711 ,743 $ 5,622 726 $ 124,276,249 The notes to the financial statements are an integral part of this statement. 11 Nonmajor Total Internal Enterprise Funds Enterprise Funds Service Fund $ $ 5,475, 126 $ 11 ,016,685 8,929,779 500,221 500,221 412,614 412,614 18,980 18.980 3,571 ,740 931 ,815 26,353 405 3,571 740 53,081 2,544, 194 2,390,967 5.758,680 4,319,415 1 , 190,411 1 , 185, 122 4,234,671 1 .662,805 381 ,972 381 ,972 427,934 427,934 507,545 507,545 1 ,116,381 _ 5,501997 1 ,528,876 2,486,913 27,714,746 3,919 843 (1 ,555 098) (1 ,361 341 ) (348,103) 2.425, 114 21717,255 280,789 280,789 (56,701 ) . (955,507) 110.656 1 , 119,827 180,407 23,616 274,792 34,766 93,052 328 753 20,942 2,876 526 3,765 909 236, 115 1 ,321 ,428 2,404,568 (111 ,988) 3,754,498 433,611 806,581 (411 ,070) _ (764,998) 1 ,343,969 6,200,649 ( 111 ,988) 16,510,081 9,715,834 $ 17,854,050 $ 9,603,846 Adjust for Internal Service Fund loss related to Enterprise Funds ( 159664 ) Change in net assets $ 6,040,785 12 City of Fayetteville, Arkansas . • Statement of Cash Flows Proprietary Funds For the Year Ended December 31 , 2002 Town Solid Water Cash flows from operating activities: Center Waste and Sewer - Cash received from customers $ $ 5,437,416 $ 209446,475 Other operating cash receipts 1 ,462 234,239 cash paid to suppliers (105,148) (3,369,058) (12,865,564) Cash paid to employees (21010,287) (2,421 ,873) Net cash provided by (used for) operating activities (105,148) 59,593 5,393,277 Cash flows from noncapital Financing activities: Intergovernmental 23,441 268,700 Taxes Operating transfers from component units 372,970 Operating transfers to component units (353192§1 Net cash provided by noncapital financing activities 19,042 23,441 268,700 Cash flows from capital and related financing activities: Capital grants Bond proceeds 9,158,760 Bond Issuance cost (97,435) Payment of bond principal (75,000) (14,390,000) Acquisition and construction of capital assets (61 ,022) (1 ,880,040) Proceeds from sale of capital assets Interest paid on bonds (300,338) (793,850) Net cash used for capital and related (375,338) (61,022) (8,002,565) financing activities Cash flows from Investing activities: Purchase of investment securities, net (165,278) Proceeds from sale of Investment securities, net 442,470 811 ,189 Interest and dividends on investments 15,402 138,390 870,258 Purchase of restricted investment securities, net Proceeds from sale of restricted investment securities, net 578,186 Net cash provided by (used for) investing activities 457,872 (26,888) 2,259 633 Net increase (decrease) in cash (3,572) (4,876) (80,955) Cash, beginning of year 3,679 24,764 451 ,809 Cash, end of year $ 107 $ 19,888 $ 370,854 Reconciliation of operating income to cash flows from operating activities Operating income (loss) (372,901) (4190519) 986,177 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 367,760 135,965 3,8819891 (Increase) decrease in customer accounts receivable (73,428) 231 ,219 (Increase) decrease in due from other funds 35,779 24,362 Decrease in due from other governments 244,430 (Increase) decrease in inventory (14,753) 28,704 ' (Increase) decrease in prepaid expenses 37,951 11632 Increase (decrease) in accounts payable (100,007) 288,910 (458,623) Increase (decrease) in other accrued expenses 65,993 31 ,628 Increase (decrease) in due to other funds 1 ,233 102,059 Increase (decrease) in deferred revenue and customer deposits 85,559 Other revenue 1 ,462 234,239 Net cash provided by (used for) operating activities $ (105,148) $ 59,593 $ 51393,277 The notes to the financial statements are an integral part of this statement. 13 Non-major Enterprise Total Internal Funds Enterprlse Funds Service Fund S 1 ,353, 149 S 27,2370100 S 3,573,855 100,215 335,916 3.617 (1 ,953,284) (18,293,054) (644,657) (312,807) _ (4,744 967) (1 ,766t567) (812,727) 4,534,995 1 , 166,248 292,141 280,789 280,789 433,611 806,581 (411,070) _ (764,998) 303,330 614,513 2,425,114 2,425,114 9, 158,760 (97,435) (325,000) (14,790,000) (2,032,967) (3,974.029) (2,055,504) (54,318) (1 , 148506) 67,256 12,829 (81426,096) (11988,248) (165,278) 379.497 1 ,633, 156 632,833 117,202 1 , 141 ,252 189, 167 (108) (108) 578, 186 496,591 3, 187,208 822,000 23 (89,380) 3.416 483,668 1 ,000 S 3,439 S 394,288 $ 1 ,000 (1 ,555,098) (1 ,361 ,341 ) (348,103) 1 ,116,381 5,501 ,997 1 ,528,876 29,780 187,571 434 (3,436) 56,705 1 ,681 394,990 639,420 (5,318) 8,633 (15,920) (13,166) 26,417 (4,265) (133,789) (403,509) (10.657) (7,873) 89,748 10.585 (296) 102,996 (735,117) (649,558) 100,215 335,916 3.617 $ ...12.12.7271 S 4,534,995 $ 1 , 166,248 The notes to the financial statements are an integral pan of this statement. 14 City of Fayetteville, Arkansas • • Statement of Fiduciary Net Assets Fiduciary Funds December 31, 2002 Pension Trust Funds Policemen's Firemen's Municipal Total Pension and Pension and Judge Pension Relief Relief Retirement Trust Assets Cash $ 99,270 $ 8,452 $ $ 107,722 Investments, at fair value 9,951 ,910 '9,664,073 717,520 20,333,503 Receivables: Customer accounts Accrued interest 98,875 53,968 4,206 157,049 Due from other funds 10,569 11542 12,111 Due from other governments 9,334 91334 18,668 Total assets 10,169,958 9,735,827 723,268 20,629,053 Liabilities Accounts payable 797,512 797,512 Due to other funds Deferred revenue 14,675 14,675 Advances from other funds Total liabilities 14,675 797,512 812,187 Net Assets Assets held in trust for pension benefits $ 10,155,283 $ 81938,315 $ 723,268 $ 19,816,866 The notes to the financial statements are an integral part of this statement. 15 • City of Fayetteville, Arkansas • Combining Statement of Changes n Plan Net Assets All Trust Funds For the Year Ended December 31, 2002 Pension TruatFunds Policemen's Firemen's Municipal Total Pension and Pension and Judge Pension Relief Relief Retirement Trust Additions: Member contributions $ 21 , 142 E 34, 130 S City contdbutions 430.502 S 55,272 Investment earnings329.644 18,506 778,652 Net decrease in fair value of investments (111 '908) (1 .069,439) 27,851 (1 , 153,496) State insurance taxes (85,789) 210,088 6,824 131 ,123 177,082 87.878 Other 6. 123 264.960 6, 123 Total additions 437, 152 (407,699) 53,181— 82,634 Deductions: Contractual services 22,363 22,768 Benefit payments 100 45,231 1 ,040.027 11234,511 2.274 538 Total deductions 11062,390 10257,279 100 2.319 769 Change in net assets (625,238) (1 ,664 978) 53,081 (2,237 135) Net assets, beginning of year 10,780,521 10,603,293 670,187 _ 22,054 001 Net assets, end of year S 10,155,283 $ 8,9`,3 $ 723,268 $ 19,816,866 The notes to the financial statements are an integral pan of this statement. 16 Page Left Blank Intentionally 17