HomeMy WebLinkAbout23-78 RESOLUTIONRESOLUTION NO. -7f
A RESOLUTION APPROVING THE FORM AND CONTENT OF THE NOTICE
AND SALE AND BIDDING INSTRUCTIONS, OFFICIAL BID FORM, AND
OFFICIAL STATEMENT RELATIVE TO THE SALE OF $800,000 CITY OF
FAYETTEVILLE, ARKANSAS GENERAL OBLIGATION IMPROVEMENT BONDS.
WHEREAS, the Board of Directors of the City of Fayetteville,
Arkansas desires to receive bids for the purchase of $800,000.00
General Obligation Improvement Bonds; and
WHEREAS, First Southwest Company, Dallas, Texas, has been
authorized and requested to prepare a Notice of Sale and
Bidding Instructions, Official Bid Form and Official Statement
containing financial, economic and other data necessary and
desirable to attract bids for said bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
That the Notice of Sale and the Bidding Instructions,
Official Bid Form, and Official Statement, marked exhibits "A"
"B" and "C" respectively, attached hereto and made a part hereof
relative to the sale of $800,000.00 City of Fayetteville , Arkansas
General Obligation Bonds are hereby approved and ratified, both
as to form and content, and First Southwest Company, Dallas,
Texas is hereby authorized to distribute said Notice of Sale
and Bidding Instructions, Official Bid Form and Official Statement
to prospective bidders for, and
/purchasers of, the bonds.
PASSED AND APPROVED this r day of , 1978, by
the Board of Directors of the City of Fayetteville, Arkansas,
convened in regular session with a lawful quorum present.
MAYOR
ATTEST:
tie .2i2fatta>tet44,-19-9f'
CITY CLERK
o
MICROFILMED
DATE OCT 2 0 19t
REEL l 1 L
iy
•
Xh,bil•
Pe5 23-12
FAYETTEVILLE
ARKANSAS
$800,000
GENERAL OBLIGATION IMPROVEMENT BONDS
SELLING TUESDAY, APRIL 18,_ 1978 AT 3:30 PM, CST
•
OFFICIAL STATEMENT
Dated April 4, 1978
$800,000 .
CITY OF FAYETTEVILLE, ARKANSAS
(Washington County)
General Obligation Improvement Bonds
Dated: January 1, 1978 Denomination: $5,000
Principal and semi-annual interest (January 1 and July 1) payable at
First interest coupon due January 1, 1979.
Bonds registrable as to both principal and interest.
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT
FEDERAL INCOME TAXES UNDER EXISTING STATUTES,
REGULATIONS, RULINGS AND COURT DECISIONS
These bonds (the "Bonds") are the total amount authorized at an election held November 29, 1977 and
constitute direct and general obligations of the City to which its full faith, credit, and taxing power is pledged,
including particularly collections of a continuing annual special tax of. two (2) mills levied on taxable
property located within the City as authorized by Amendment No. 13 of the Constitution of the State of
Arkansas. See Security for Payment, Page 4. The City of Fayetteville has never defaulted.
MATURITY SCHEDULE
(Due January 1)
Amount Maturity Rate Yield Amount Maturity Rate Yield
$50,000
50,000
55.000
60,000
60,000
65,000
981
982
983
984
985
986
$70,000
70,000
75,000
80.000
80,000
85.000
987*
988*
989*
990*
991*
992*
*The City reserves the right, at its option, to redeem Bonds maturing January 1, 1987 through
January 1, 1992, both inclusive, in whole, or in part in inverse numerical order, on January 1, 1986, or any
interest payment date thereafter, at the par value thereof plus accrued interest to the date fixed for
redemption.
The General Obligation Improvement Bonds are offered for delivery when, as and if issued and subject
to the unqualified approving opinion of Messrs. Friday, Eldredge & Clark, Bond Counsel, Little Rock,
Arkansas, whose approving opinion will be printed on the Bonds. It is expected that the Bonds will be
delivered on or about May 23, 1978.
TABLE OF CONTENTS
This Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person to
whom it is unlawful to make such offer in such jurisdiction. No dealer, salesman, or any other person has been
authorized to give any information or make any representation, other than those contained herein, in
connection with the offering of these Bonds, and if given or made, such information or representation must not
be relied upon. The information and expressions of opinion herein are subject to change without notice and
neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances,
create any implication that there has been no change in the affairs of the City since the date hereof.
Page
Board of Directors n
Appointed Officials 3
Consultants and Advisors 3
Security for Payment 4
Valuation and Debt Information 4
Non -Funded Debi 4
Tax Rate and Funded Debt Limitations 4
Tax Adequacy 5
Adequacy of Two Mill Tax Levy 5
Valuation and Funded Debt History 6
Taxable Assessed Valuations By Category 6
Estimated Overlapping Funded Debt Payable From Ad Valorem Tax es 6
Tax Data
i
Municipal Sales Tax .. 8
Proceeds 8
Ten Largest Taxpayers 8
Debt Service Requirements 9
Authorized But Unissued General Obligation Bonds 9
Pension Funds 9
General Fund Statement of Revenues, Expenditures and Fund Balance I O
Waterworks and Sewer System 11
Condensed Statement of Operations 11
Value of the System 12
City's Equity in System 12
Coverage and Fund Balances 12
Authorized But Unissued Revenue Bonds 13
Monthly Water Rate 13
Monthly Sewer Rate 13
Waterworks System 14
Ten Largest Water Users 15
Sewer System .. 15
The City 16
Ratings 19
Tax Exemption 19
Registration and Qualification of Bonds for Sale 19
Legal Investments in A rkansas 19
Legal Opinions and No -Litigation Certificate 19
Authenticity of Financial Information 20
Certification of the Official Statement 20
General Fund Financial Statements Appendix
The cover page hereof, this page, the appendix included herein and any addendum, supplement or
amendment hereto, are part of the Official Statement.
2
Name
Ernest Lancaster
Mayor
John Todd
Vice Mayor
Paul Noland
Director
Al Hughes
Director
David Malone
Director
Philip Colwell
Director
Ann Henry
Director
Name
Donald L. Grimes
Patrick J. Tobin
Darlene M. Westbrook
Don Bunn
Dale Clark
James N. McCord
BOARD OF DIRECTORS
Term Expires
December 31, 1978
December 31, 1978
December 31, 1978
December 31, 1978
December 31, 1980
December 31, 1980
December 31, 1980
Length of Service Occupation
7 years Electric operations manager
3 years
5 years
3 years
Professor, Business Management
University of Arkansas
Professor, Animal Science
University of Arkansas
Real Estate Broker
1 year Assistant Dean, Law School
University of Arkansas
1 year Pharmacist
1/2 year Civic leader and Homemaker
APPOINTED OFFICIALS
Position
City Manager
City Controller
City Clerk
City Engineer
Parks & Recreation Director
City Attorney
CONSULTANTS AND ADVISORS
Length of
Service
6 years
8 years
4 years
6 months
9 years
4 years
Certified Public Accountants Douglas Walker & Co.
Fayetteville, Arkansas
Consulting Engineers McGoodwin, Williams & Yates
Fayetteville, Arkansas
McClelland Consulting Engineers
Fayetteville, Arkansas
Architects Paul Young & Associates
Fayetteville, Arkansas
Warren D. Segraves & Associates
Fayetteville, Arkansas
Rate Consultants Black and Veatch
Dallas, Texas
Bond Counsel Friday, Eldredge and Clark
Little Rock, Arkansas
FINANCIAL ADVISORS
First Southwest Company
Mercantile Bank Building
Dallas, Texas
3
SECURITY FOR PAYMENT
These General Obligation Improvement Bonds (the "Bonds") constitute general obligations of the City
and the City pledges to the payment of the Bonds its full faith, credit and taxing power, including particularly
collections of a continuing annual ad valorem tax of two (2) mills to be levied on the assessed valuation of all
taxable real and personal property located within the City. The two mill tax will be levied in 1979 and
annually thereafter until either the principal of and interest on the Bonds has been paid, provision has been
made for the payment thereof from any other available revenue source of the City, or available funds in the
Interest and Sinking Fund for the Bonds exceeds the principal and interest requirements to come due on the
Bonds in any one year.
VALUATION AND DEBT INFORMATION
1978 Taxable Assessed Valuation (20% of Actual)(1)
City Funded Debt Payable From Ad Valorem Taxes:
General Obligation Improvement Bonds (as of February 28, 1978)
The Bonds
Total(2)
Ratio Total Funded Debt to Taxable Assessed Valuation
1970 U.S. Census Population — 30,729
1976 Estimated Population — 34,034*
Per Capita Taxable Assessed Valuation — $1,762.39
Per Capita Total Debt — $23.51
Area — 39.3 square miles
$59,981,280
$ —0-
800,000
$ 800,000
1.33%
*Source: 1976 Special Census conducted for the City of Fayetteville by U.S. Department of Commerce
Bureau of The Census.
NorE 1: The City does not grant any exemptions.
Non 2: The above statement of indebtedness does not include $10.526,000 outstanding Waterworks
and Sewer Revenue Bonds, nor $1.500,000 additional Waterworks and Sewer Revenue Bonds to be offered
for sale simultaneously with the General Obligation Improvement Bonds offered herein, as these bonds are
payable solely from the net income of the waterworks and sewer system.
1978
NON -FUNDED DEBT
The City has no unfunded debt outstanding or lease -purchase agreements in effect as of February 28,
TAX RATE AND FUNDED DEBT LIMITATIONS
Tax Rate Limitations
General Operations. A limit of five mills is imposed by the Constitution of the State of Arkansas on
the City for operations of the City's General Fund. Taxes above the five mill limit may be levied only for
specific purposes and upon a favorable vote of the qualified electorate. Such taxes that are currently
authorized are one mill for each of the Firemen's Retirement Salary and Pension Fund and the Policemen's
Retirement Salary and Pension Fund.
4
•
•
General Obligation Debt Retirement. Amendment Number 13 of the Constitution of the State of
Arkansas limits the maximum tax which may be levied to pay the principal of and interest on bonds issued
for general improvements to five mills, said tax subject to a favorable vote of the qualified electorate. The tax
available to pay these $800,000 General Obligation Improvement Bonds is strictly limited to two mills within
this available five mill limitation.
Funded Debt Limitation
Amendment Number 13 of the Constitution of the' State of Arkansas limits the amount of General
Obligation debt which may be incurred to twenty-five percent of taxable assessed values within the City.
TAX ADEQUACY
Based on 1978 Taxable Assessed Valuation
All General Obligation Bonds (including these bonds):
1979 Principal and Interest Requirements $ 60,000
2 Mill Tax Rate @ 95% Collection Produces 113,964
Average Annual Principal and Interest Requirements, 1981-92 - $ 88,625
2 Mill Tax Rate @ 95% Collection Produces 113,964
ADEQUACY OF TWO MILL TAX LEVY
Based on 1978 Taxable Assessed Valuation
Fiscal Year Ending Estimated Debt Two Mill Levy Cumulative
12-31 Service Requirements ® 95% Collection Surplus Surplus
1979 S60,000 $113,964 $53,964 S 53,964
1980 40,000 113,964 73,964 127,928
1981 88,750 113,964 25,214 153,142
1982 86,250 113,964 27,714 180,856
1983 88,625 113,964 25,339 206,195
1984 90,750 113,964 23,214 229,409
1985 87,750 113,964 26,214 255,623
1986 89,625 113,964 24,339 279,962
1987 91,250 113,964 22,714 302,676
1988 87,750 113,964 26,214 328,890
1989 89,125 113,964 24,839 353,729
1990 90,250 113,964 23,714 377,443
1991 86,250 113,964 27,714 405,157
1992 87,125 113,964 26,839 431,996
NOTE: Under Arkansas law the City can apply the proceeds of the two mill tax pledged for the
payment of these $800,000 Bonds only to the payment of these General Obligation Improvement Bonds and
to no other source. As a result, when sufficient funds are accumulated in the Bond Fund to fully fund the
Bonds the City must redeem the Bonds in advance of maturity, assuming the Bonds are properly callable at
that time, under the call provisions as outlined herein.
5
Fiscal
Year Ending
December 31,
1970
1971
1972
1973
1974
1975
1976
1977
1978
*Estimated.
Tax Year Ended
December 31,
1973
1974
1975
1976
1977
1978
VALUATION AND FUNDED DEBT HISTORY
Taxable
Assessed
Valuation
$34,118,555
37,243,205
40,506,285
44,466,115
46,413,135
48,787,980
52,057,455
55,407,980
59,981,280
Funded Debt
Outstanding
at End
of Year
$777.000
654,000
620,000
479,000
445,000
409,000
0
0
800,000*
TAXABLE ASSESSED VALUATIONS BY CATEGORY
Personal Property
Amount
$10,388,170
10,344,345
11,186,395
12,568,765
14,019,530
15,402,505
% of
Total
Value
23.36
22.29
22.93
24.14
25.30
25.68
Real Property
Amount
$30,726,530
32,522,215
33,785,305
35,349,425
36,894,825
39,293,965
% of
Total
Value
69.10
70.07
69.25
67.90
66.59
65.51
Utility Property
% of
Total
Amount Value
$3,351,415
3,546,575
3,816,280
4,139,265
4,493,625
5,284,810
7.54
7.64
7.82
7.96
8.11
8.81
Ratio Funded
Debt to
Taxable
Assessed
Valuation
2.28%
I.76%
1.53%
1.08%
.96%
.84%
0%
0%
1.33%
Total
Assessed
Valuation
$44,466,115
46,413,135
48,787,980
52,057,455
55,407,980
59,981,280
ESTIMATED OVERLAPPING FUNDED PAYABLE FROM AD VALOREM TAXES
As of December 31, 1977
Taxing Jurisdiction
Total
Funded Debt
City of Fayetteville $ 800,000
Fayetteville School District No. 1 2,510,000
Washington County
Springdale School District No. 50 5,243,000
Total Overlapping Funded Debt
Ratio Overlapping Funded Debt to Taxable Assessed Valuation
Estimated % Overlapping
Applicable Funded Debt
100.00% $ 800,000
93.45% 2,345,595
39.1I% —
3.52% 184,554
$3,330,149
5.55%
Per Capita Overlapping Funded Debt — $97.85
6
Fiscal
Year Ending Total
December 31, Tax Rate
General
Fund
TAX DATA
Interest
and
Sinking
Fund
1970 16 mills 10 mills 4 mills
1971 16 mills 10 mills 4 mills
1972 16 mills 10 mills 4 mills
1973 16 mills 10 mills 4 mills
1974 16 mills 10 mills 4 mills
1975 I I mills 5 mills 4 mills
1976 7 mills 5 mills 0 mills
1977 7 mills 5 mills 0 mills
1978 7 mills 5 mills 0 mills
Fire
and
Police Total
Pension Fund Tax Let)/
*Includes delinquent tax collections from prior years.
2 mills $545,897
2 mills 595,891
2 mills 648,101
2 mills 711,458
2 mills 742,610
2 mills 536,668
2 mills 364,402
2 mills 387,856
2 mills 419,869
Total %Total
Collections Collections
$541,275
608,447
642,920
656,942
736,409
484,347
364,672
358,295
In process
99.15%
102.11%
99.20%
92.34%
99.17%
90.25%
100.07%
92.38%
of collection
Assessment, Levy and Collection of Arkansas Property Taxes
Under the Arkansas Constitution, as amended, all property is subject to taxation according to its value,
except for the following exempt categories: (I) public property; (2) churches; (3) cemeteries; (4) school
buildings and apparatus; (5) libraries and grounds used for school purposes; (6) buildings, grounds and
materials used for public charity; and (7) intangible personal property to the extent the General Assembly
has exempted it from taxation, provided that it be taxed at a lower rate, or provided for its taxation on a basis
other than ad valorem. Intangible person property is exempt from taxation under present law. Historically,
intangible.personal property has not been subject to ad valorem taxation in Arkansas.
The elected assessor of each Arkansas County assesses the value of all real and tangible personal
property located within the county. Property is voluntarily rendered for assessment between January 1 and
April 10 of each year with penalties provided for late rendering. Assessed value is an amount equal to 20% of
the true or market value and levied millage is applied against this assessed value to determine the tax owed.
Tax statements are mailed after the third Thursday in February in the following year. Taxes become due
March 1 and become delinquent after October 10 of the same year. Delinquent personal property taxes may
be collected by distraint and public sale of the property; delinquent real property taxes may be collected by
public sale of the property or striking it off (forfeiture) to the State of Arkansas.
Split payments are allowed: 1/4 by the third Monday in April; 1/4 by the third Monday in July; 1/2 by
October 10. No discounts are allowed. Charges for penalty and interest are made as follows:
Interest — No charges for interest are made.
Penalties — A total of 10% of the delinquent tax is assessed in penalties after October 10 for both
real and personal property. A 25% additional penalty may be assessed by the delinquent tax collector
on personal property only.
7
VP
MUNICIPAL SALES TAX
The State, from collection of its 3% sales tax, allocates a specified dollar amount bi-annually to a
municipal turnback fund. From this fund the State remits to the City its percentage of the fund based upon its
population in relation to the State's total population. All population figures are based upon the U.S.
Department of Commerce Bureau of the Census figures in all instances. The City of Fayetteville's percentage
is based upon the 1976 Special Census conducted by the Bureau of the Census. Per capita turnbacks are as
follows: 1976 — $10.54 (actual); 1977 — $12.30 (estimated); and 1978 — $13.50 (estimated). Revenue from
this source to the City of Fayetteville has been as follows:
Fiscal To of Equivalent of
Year Ending Total Ad Valorem Ad Valorem
December 31, Collected Tax Levy Tax Rate
1970
1971
1972
1973
1974
1975
1976
1977
$129,480
141,105
163,134
192,600
333.760*
347,389
350.758
431,314**
*Increased State allotment to municipal turnback fund.
**Unaudited.
23.72
23.68
25.1?
27.07
44.94
64.73
96.26
89.92
3.80 mills
3.79 mills
4.03 mills
4.33 mills
7.19 mills
7.12 mills
6.74 mills
7.79 mills
PROCEEDS
Proceeds from the sale of these $800,000 General Obligation Improvement Bonds will be used for an
expansion of the existing City Library and the acquisition., construction and equipping of a park or parks.
TEN LARGEST TAXPAYERS
Name of Taxpayer
Southwestern Bell Telephone Company
Southwestern Electric Power Company
Standard Register Company
Baldwin Corporation
Campbell Soup Company
Northwest Arkansas Plaza Mall
Arkansas Western Gas Company
Southgate Shopping Center
Evelyn Hills Shopping Center
Maple Manor Apartments
Nature of Property
Telephone Utility
Electric Utility
Paper Form Manufacturer
Piano and Electronics Manufacturer
Food Processing Plant
Shopping Mall
Gas Utility
Shopping Center
Shopping Center
Apartment Complex
8
1978 Taxable
Assessed
Valuation
4n of Total
Taxable
Assessed
Valuation
$ 2,861 260 4.77%
2,198,630 3.67%
1,117,105 1.88%
1,044,140 1.74%
1,024,557 1.71%
908,050 1.51%
537,040 0.90%
306,850 0.51%
274.310 0.46%
266.730 0.44%.
$10,548,672 17.59%
Fiscal Year
Ending
December 31,
DEBT SERVICE REQUIREMENTS
GENERAL OBLIGATION IMPROVEMENT BONDS
This $800,000 Issue % of Principal
Principal
Interest Total Retired
1979 $ - $ 60,000 $ 60,000.
1980 - 40,000 40,000
1981 50,000 38,750 88,750
1982 50,000 36,250 86,250
1983 55,000 33,625 88,625
1984 60,000 30,750 90,750
1985 60,000 27,750 87,750
1986 65,000 24,625 89,625
1987 70,000 21,250 91,250
1988 70,000 17,750 87,750
1989 75,000 14,125 89,125
1990 80,000 10,250 90,250
1991 80,000 6,250 86,250
1992 85,000 2,125 87,125
$800,000 $363,500 $1,163,500
19.38%
60.00%
100.00%
NOTE: Interest on these $800,000 Bonds calculated at 5.00% for purposes of illustration.
AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS
Purpose
Library Improvements
Park Improvements
Amount Amount
Date Amount Heretofore Being Unissued
Authorized Authorized Issued Issued Balance
November 29, 1977 $200,000 $ -0- $200,000 $ -0-
November 29, 1977 600,000 -0- 600,000 -0-
$800,000 $ -0- $800,000 $ -0-
PENSION FUNDS
Retirement Plan
The Retirement Plan covers all full-time employees of the City at least 25 years of age and less than 60
years of age on the date of their employment which are not covered by the Firemen's or Policemen's
Retirement Salary and Pension Fund. The employee contributes 3% of his total salary with the City
contributing the balance required to keep the plan actuarially sound. The plan purchases for each participant
a term insurance policy equal to sixty-seven times his estimated monthly retirement benefit, recalculated
yearly, during his employment. Upon retirement the employee has several benefit options, all of which are
funded with reserves administered by a Trustee. As of May 31, 1977 the Vested Values computed exceeded
the total assets of the Trust by $18,314. According to an actuarial study this condition is due to a change in
the vesting provision of the plan and should correct itself in a very few years.
Firemen's Retirement Salary and Pension Fund
All firemen, including volunteer firemen, are covered under this plan. The full-time fireman contributes
3% of his total salary to the plan. The volunteer fireman pays a specified amount annually. The balance of the
9
plan is funded through collections of a special one mill tax levied by the City. The employee is eligible for
retirement after twenty years of service, and under certain conditions prior to this time. If the employee
terminates prior to his eligibility for retirement, he receives back all contributions made to the fund by him.
The City of Fayetteville does not have any unfunded accrued liability in the plan. All benefit levels and tax
funding are established by Arkansas Statute, and an actuarial study of all Statutory Retirement Plans in the
State of Arkansas is currently underway. Should any funding deficiencies be found, appropriate legislation
by the State of Arkansas would be required, either to provide for additional funding or decreased benefits.
Policemen's Retirement Salary and Pension Fund
All policemen are covered under this plan. The employee contributes 3% of his total salary to the plan.
The balance of the plan is funded through collections of a special one mill tax levied by the City, a portion of
municipal court fines, and a portion of parking ticket proceeds. The employee is eligible for retirement after
twenty years of service, and under certain conditions prior to this time. If the employee terminates prior to
this eligibility for retirement, he receives back all contributions made to the fund by him. The City of
Fayetteville does not have any unfunded accrued liability in the plan. In the event the plan develops a funding
deficiency, an adjustment in the apportionment of the various sources of revenue to the plan would be
necessary.
STATEMENT OF REVENUES, EXPENDITURES, AND FUND BALANCE
GENERAL FUND
Fiscal Year Ended December 31,
1976 1975 1974 1973 1972
Fund Balance - Beginning of Year $ 702,024 $ 624,634 $ 590,433 $ 522,650 $ 327,379
Revenues:
General Property Taxes $ 251,057 $ 236,083 $ 415,342 $ 378,931 $ 365,325
Franchise Taxes 339,133 233,400 206,213 193,131 178,857
Licenses and Permits 175,721 65,353 60,275 59,712 67,717
Fines and Penalties 184,229 198,227 196,192 213,098 228,896
Use of Money and Property 189,929 182,548 136,857 111,556 92,025
Other Revenues 481,591 698,952 661,519 290,099 242,683
Total Revenues $1,621,660 $1,614,563 $1,676,398 $1,246,527 $1,175,503
Expenditures:
General Government $ 296,668 $ 287,972 $ 280,825 $ 211,600 $ 176,052
Public Safety 849,442 848,941 815,091 752,898 644,139
Recreation 112,220 114,088 355,602 101,884 80,625
Miscellaneous 144,674 286,172 190,679 114,925 87,790
Total Expenditures $1,403,004 $1,537,173 $1,642,197 $1,181,307 $ 988,606
Excess of Revenues over Expenditures $ 218,656 $ 77,390 $ 34,201 $ 65,220 $ 186,897
Fund Balance - Year End $ 920,680 $ 702,024 $ 624,634 $ 590,433 $ 522,650
10
WATERWORKS AND SEWER SYSTEM
CONDENSED STATEMENT OF OPERATIONS
REVENUE:
Water Sales
Sewer Service Charges
Miscellaneous
Interest on Investments
Total
EXPENSE:
Water Supply and Treatment
Water Distribution and
Transmission
Sewage Collection and Treatment
Pollution Control Plant
Chemical and Laboratory Control
Customer Accounting and
Collection
Administrative and General
Total
NET AVAILABLE FOR DEBT SERVICE
Water Customers
Fiscal Year Ended July 31,
1977
1976
1975
1974
1973
$1,529,248 $1,337,662 $1,283,382 $1,203,787 $1,228,557
1,131,156 1,033,603 979,319 975,139 935,022
74,420 79,861 88,529 70,886 63,571
250,566 257,390 246,043 143,761 82,230
$2,985,390 $2,708,516 $2,597,273 $2,393,573 $2,309,380
$ 414,626 $ 304,987 $ 263,954 $ 333,289 $ 203,667
137,114
125,664
309,089
7,549
238,839
183,868
$1,416,749
$1,568,641
72,681
155,187
257,331
7,076
222,435
173,254
$1,192,951
$1,515,565
12,363 11,710
Sewer Customers 9,533
11
9,161
87,730
126,378
238,713
6,914
190,160
167,439
$1,081,288
$1,515,985
91,286 141,786
109,850 57,460
190,284 182,514
5,475 5,461
191,212 130,951
195,480 160,810
$1,116,876 $ 882,649
$1,276,697 $1,426,731
11,375 11,172 10,833
8,808 8,628 8,292
VALUE OF THE SYSTEM
Fiscal Year Ended July 31.
1977
4976
1975
1974 1973
Waterworks System $13,610.156 $12,782,345 $12,045,137 SI 1.262,174 $10,562,650
Sewer System 8,426,982 8,069,305 7,947,475 7,751,731 7,163.470
Total Value 522,037,138 $20,851,650 519,992,612 $19.013,905 $17,726.120
Reserve for Depreciation:
Waterworks System S 3,958,119 $ 3,668.398
Sewer System 2.519,284 2,275,379
Total Depreciation $ 6,477,403 S 5,943,777
Net System Ni slue $15,559,735 $14.907,873
Resources:
Net System Value
Construction in Progress
Cash and Investments
Reserve Fund Assets
Other Resources
Total Resources
Obligations:
Revenue Bonds Payable
Other Obligations
Total Obligations
City's Equity in System
S 3,399,792
2,035.644
$ 5,435.436
$14,557,176
CITY'S EQUITY IN SYSTEM
$ 3,136,492
1,806,907
5 4.943,399
514.070,506
Fiscal Year Ended July 31,
5 2,892,358
1.578,650
S 4.471,008
513.255.112
1977
515,559,735
5,193,915
1,526,624
2.813,571
668,262
$25,762,107
$10,566,000
766,863
$11,332.863
$14,429,244
% of Equity in System
56.01
1976
$14,907.873
4,536,038
1,455,969
3.066,092
587,938
524,553,910
$10,801,000
908,907
S11,709,907
512,844,003
52.31%
1975
$14,557,176
1,248,497
1,140,809
3,998,454
579,546
$21,524,482
1974
$14,070,506
376,698
1.013,998
1.505,903
603,061
$17,570,166
510.994,000 $ 8,680.000
830,531 258.824
$11,824,531 5 8,938,824
$ 9,699,951 5 8.631,342
45,06%
COVERAGE AND FUND BALANCES
49.12%
Average Annual Principal and Interest Requirements, 1978-2002 ..................................
Coverage of Average Requirements by July 31, 1977 Net Income ....................... ....... ..
Maximum Principal and Interest Requirements, 1980
Coverage of Maximum Requirements by July 31, 1977 Net Income
Waterworks and Sewer System Revenue Bonds Outstanding, February 28, 1978
Interest and Sinking Fund. February 28, 1978
Reserve Fund, February 28, 1978
Contingency Reserve Fund, February 28, 1978
Repair and Replacement Fund, February 28, 1978
Surplus Revenue Fund, February 28, 1978
12
1973
$13,255,112
232,991
794,809
1.319,889
478,244
516.081.045
5 8,859,000
135,954
5 8.994,954
5 7,086,091
44.06%
S 744,806
2.'. 1 Times
5 768,254
2.04 Times
510,526.000
5 447,2_83
5 778,000
$
100,474
5 50,000
$ 1.111.686
Purpose
Waterworks and Sewer
AUTHORIZED BUT UNISSUED REVENUE BONDS
Amount
Date Amount Heretofore Unissued
Authorized Authorized Issued Balance
December 23, 1974 $4,000,000 $2,500,000 $1,500,000
MONTHLY WATER RATE*
Effective January 1, 1972
Rate Per 1,000 Gallons
Inside City Outside City Growth Area
First 10,000 gallons or portion thereof $0.80 $1.00 $1.13
Next 290,000 gallons 0.65 0.80 1.13
Next 4,700,000 gallons 0.53 0.65 1.13
All Over 5,000,000 gallons 0.44 0.55 1.13
*In addition to the above rates a 3% State Sales Tax and a monthly meter charge based upon the size of
the meter is added as follows: Inside City Limits — $1.50 to $50.00; Outside City Limits — $1.90 to $60.00;
Growth Area — $6.00 to $65.00.
MONTHLY SEWER RATE*
Effective January 1, 1972
Rate
Per 1,000
Gallons
Inside City
First 10,000 gallons of water consumed $1.05
Next 290,000 gallons of water consumed 0.65
All Over 300,000 gallons of water consumed 0.40
Add monthly sewer service charge at $0.80 per bill
*For residential customers a sewer average will be computed based on water consumption for the
months of December, January and February of each year. The average will be computed by using the
schedule of sewer rates shown above.
13
WATERWORKS SYSTEM
Description of Present System
Fayetteville is a city of 34,034 residents covering 24,396.4 acres. There are presently 12,363 water
customers and 9,533 sewer customers. The City of Fayetteville owns and operates, through twenty year
contracts, the water systems for two sister cities — Farmington and Greenland, Arkansas. Fayetteville also
sells bulk water to a third city — Elkins, Arkansas. The water system consists of 240 miles of 21/4 inch
through 36 inch water mains, 180 miles of 6 inch through 30 inch sewer mains, and 9 lift stations.
Present Water Supply
The water supply for the City is provided by the Beaver Water District, which was formed by the Cities
of Fayetteville, Springdale, Rogers and Bentonville. The District's source of water is Beaver Lake with a
capacity of 1.651,900 acre feet. The District has guaranteed right to 120 million gallons per day, which is
projected to be sufficient to meet the cities' needs through the year 2000. The District operates a water
treatment plant at Lowell, Arkansas, which has a present nominal capacity of 25 million gallons per day. In
addition to the water supplied by the District, Fayetteville has its own water supply lake and treatment plant
with a capacity of 6 million gallons per day for standby purposes. Northwest Arkansas is also a water rich
area and added capacity may be obtained.
Water Storage
Water storage presently consists of 18.25 million gallons, located to serve all geographic areas of the
City.
Pumping Plants
Pumping facilities at the Lowell Treatment Plant can handle up to 16.6 million gallons per day with
expansion capability to 24 million gallons per day. In addition, there are three elevated booster pressure
systems to serve higher elevations. Pumping facilities for raw water are at Lake Sequoyah and West Fork.
Distribution System
Large transmission mains transport water to all parts of the City at an average pressure of
approximately 100 psi. Minimum fire main size permitted is six inch when looped or eight inch for dead end
lines. Fire hydrants are adequately spaced, system is gridded and interconnected for maximum reliability.
Industrial sites are served by Targe mains with ample capacity for future developments.
Past Consumption of Water
Year
Average Maximum
Daily Use Day's Use
in Gallons in Gallons
Total
1965 4,338,216 7,598,000 1,583,444,000
1966 4,636,920 8,386.000 1,692.476,000
1967 4,816,465 7,894.000 1,758.010,000
1968 5,103,000 8,240,000 1,842.952,000
1969 5,455,000 8,048,000 1,991.436,000
1970 5,758,000 9,056,000 2,102,013,000
1971 5,647,717 8,970,000 2,632,425,000
1972 5,600,000 8,900,000 1,881,973,000
1973 5,900,000 8,100,000 2,044,795,000
1974 6,000,000 9,400,000 2,196,590,000
1975 5,300,000 7,600,000 1,941,200,000
1976 6,000,000 9,600,000 2,181,300,000
1977 6,700,000 10,400,000 2,442,700,000
14
TEN LARGEST WATER USERS
1977 CONSUMPTION
(Gallons)
User
1. Campbell Soup Company
2. University of Arkansas
3. Elkhart Products Corporation
4. Shakespeare of Arkansas
5. The Standard Register Company
6. City of Elkins
7. Fayetteville Public Schools
8. Bear Brand Hosiery Company
9. Coca-Cola Bottling Company
10. R & P Electroplating
Total
SEWER SYSTEM
Per Month
Average
41,994,000
17,765,700
2,016,600
1,978,900
1,364,200
1,221,900
897,300
856,000
661,300
549,200
69,305,100
1977
Total
503,930,000
213,188,300
24,199,100
23,746,600
16,370,700
14,662,900
10,766,700
10,272,400
7,935,600
6,590,500
831,662.800
% of
Total 1977
Consumption
20.63%
8.73%
0.99%
0.97%
0.67%
0.60%
0.44%
0.42%
0.33%
0.27%
34.05%
Description of the System
The City owns and operates a secondary sewage treatment plant located on the west fork of the White
River approximately two miles east of Fayetteville. Treatment consists of primary and secondary
sedimentation, grease and grit removal, sludge burial, and activated sludge units. The present capacity of the
plant is ten million gallons per day, which is adequate for a population of approximately 50,000. Studies are
now underway to determine the most economically feasible method of expanding the treatment capacity in
order to meet future needs.
Sewage Flows and Projections
Average Daily Sewage Flow Estimated Daily Sewage flow
1972
1973
1974
1975
1976
1977
5,863,000 gallons
7,774,000 gallons
7,220,000 gallons
6,600,000 gallons
5,200,000 gallons
5,800,000 gallons
15
1978
1979
1980
1981
1982
1983
9,800,000 gallons
10,700,000 gallons
11,800,000 gallons
13,000,000 gallons
14,200,000 gallons
15,100,000 gallons
THE CITY
General
Fayetteville, with a 1976 population of 34,034, is settled in the Ozark Mountains in Northwest
Arkansas. Fayetteville is that area's largest city and principal trade center. The City is the service center for
approximately 150,000 people. Industry in the Fayetteville area employs over 5,000 people with production
in poultry products, printed forms, fuses, copper tubing connections, hosiery, electronic organs, fishing rods
and reels and golf clubs.
Fayetteville is the County Seat of Washington County. Approximately 53 percent of Washington
County is covered with timber. About four percent of this coverage is in National Forest. The County is very
much a poultry producing county with production in poultry having reached $80.000,000 in 1972,
Washington County had retail sales totaling $267,278,000 in 1976, while the Fayetteville, Springdale SMSA
had retail sales of over $444,600,000.
City Government
Fayetteville is controlled by a manager -director form of government. The seven members of the Board
of Directors are elected at large to four year, overlapping terms. The Board of Directors selects one member
to serve as Mayor and one as Assistant Mayor. The Board also is responsible for selecting a City Manager
who is the acknowledged administrative officer of the City.
Education
One of the trademarks of Fayetteville is that it houses the main campus for the University of Arkansas.
The 1976-77 statistics show the Fayetteville campus had an enrollment of over 13,000 students. The major
divisions of the University in Fayetteville are the Division of Agriculture, the College of Arts and Sciences,
including more than 40 departments, the College of Business Administration, the College of Education, the
College of Engineering, the Division of General Extension, the Graduate School, and the School of Law. The
libraries offering valuable research support to these divisions number over 700,000 volumes. This fine
University has truly been of service to many people through the years, and it is proud to include a new list of
graduates each year to its Senior Walk, on the grounds of Fayetteville, as it has done every year for the past
81 years. The University is a major asset to the City of Fayetteville.
The public school system of Fayetteville has an average daily attendance of more than 5,500 students.
There are 304 teachers employed by the District. The State Department of Education has given the
elementary schools an "A" rating. The high school and junior high schools have received full accreditation
from the North Central Association of Colleges and Secondary Schools. The school system has been an
innovator for the State of Arkansas. The Fayetteville system was the first in the state to establish a General
Adult Education Program in Arkansas and to construct the first Open -Space school with interior walls or
partitions. The high school was the first one in the State to utilize modular scheduling, team teaching, large
and small group instruction, independent study and individualized instruction. Fayetteville also has a
Technical High School serving anyone who wishes to receive the training. This school offers 140 training
courses in conjunction with Fayetteville High School. The technical training includes such courses as building
trades, auto mechanics, drafting, dental assisting, body and fender repair, cosmetology, and printing. Day
classes are mainly for high school students and adults attend evening classes.
Population
The City of Fayetteville had a 51.6% increase in population from 1960 to 1970. The City had a
population of 20,274 in 1960 and 30,729 in 1970. 1976 population was 34,034. Washington County also
experienced an increase in population, with 55,800 in 1960 and 77,370 in 1970; a 39% increase. The County
had an estimated 1976 population of 90,700.
16
•
Financial Institutions
The First National Bank, Mcllroy Bank, Northwest National Bank, First Federal Savings and Loan
Association and Fayetteville Savings and Loan Association presently serve the City.
Year
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
Industry and Business
Company
Armstrong Bros. Tool Company
Ayers Furniture Products
Baldwin Piano and Organ Company
Bear Brand Hosiery Company
Campbell Soup Company
College Club Dairy
Farm Service Cooperative
Gould, Inc.
Kearny Company
Levi Strauss and Company
McClinton -Anchor Company
Mexican Original Products, Inc.
Northwest Arkansas Times
Shakespeare of Arkansas
Shipley Baking Company
The Standard Register Company
Combined
Bank Deposits
$ 52,065,829
59,346,298
60,672,099
67,871,118
71,968,082
78,580,000
92,481,748
113,780,149
126,832,162
140,484,593
160,971,735
Business
Combined Savings
and Loan Deposits
$23,006,765
24,852,080
26,206,482
29,713,338
34,134,196
39,038,926
50,957,277
60,374,285
68,362,037
79,847,449
94,448,096
Industrial Hand Tools
Wood Furniture
Electronic Musical Instruments
Hosiery
Frozen Processed Foods
Milk and Dairy Products
Feeds, Seeds, Fertilizers, etc.
Copper Fittings and Air Conditioning Parts
Electrical Tools and Parts
Pants, Jackets, Vests
Limestone Products, Asphalt
Processed Mexican Food
Newspaper
Sporting Goods
Bread Products
Business Forms
17
Number of
Employees
50-99
50-99
500-999
200-299
1,000-2,499
50-99
100-199
300-499
200-299
300-499
200-299
200-299
50-99
200-299
50-99
300-499
Building Permits and Utility Connections
Year
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
Building
Permits
$ 3,489,807
3,887,073
4,424,134
3,703,722
6,321.400
11,377.440
11,291,782
8,600,179
6,884,021
8,689,1 13
17,118,103
Sales Management Estimates of Retail Sales
Washington County
Year I Fayetteville)
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
$132,450,000
144,1 19,000
158,280,000
171,581,000
180,494,000
193,915,000
239,862,000
239,559,000
249.887,000
267,278,000
Gas
Meters
7,747
8,417
8,612
8,718
8,843
8,992
9,212
9,211
9,341
9.494
9.802
Benton County
(Springdale)
$ 61,609,000
68,378,000
70,211,000
75,281,000
80,960,000
86,762,000
107,449,000
136,879,000
154,303,000
177,323,000
Electric
Meters
8,335
8,617
9,226
9,325
9,599
9,917
10,501
11,254
12,453
12,709
13,020
Telephones
16,370
18,734
20,071
21,624
23,083
24,385
25,725
27,443
28,303
29.986
30.924
Total
Retail Sales
$194,059,000
212.497,000
228,491,000
246,862,000
261,454,000
280,677,000
347,361,000
376,438,000
404,190,000
444,601.000
Transportation
Air transportation is furnished by Frontier Airlines and Skyways Scheduled Systems at Drake Field
Airport. There is one paved, north/south runway, 100 feet by 6,000 feet. In 1976 38,918 passengers enplaned
and 835,635 pounds of cargo came through the airport.
Jefferson Lines (Crown Coach), Arkomo and Continental Trailways Bus Lines, with regular scheduled
daily runs. provide connections to all major points in the United States. Rail transportation is furnished by
the St. Louis -San Francisco Railroad, servicing the Midwest and Southwest. Seven common carrier truck
lines provide service.
Recreation
Fayetteville is circled by lakes on the White River. Beaver Darn and Reservoir, located ten miles from
Fayetteville, provides fishing, skiing and other water -related sports. The University of Arkansas provides
various sporting events, which attract many people to the area. The State of Arkansas has many areas which
permit the hunting of deer, quail, dove and other wildlife.
18
Hospitals
Fayetteville, the medical center of Northwest Arkansas, is served by three hospitals; the City Hospital
and Washington Regional Medical Center, with a combined total of 326 beds, and the Veterans Hospital,
with a total of 254 beds. Washington Regional Medical Center was recently expanded and is now the most
modern and best equipped hospital in the Northwest Arkansas area.
RATINGS
Application for contract ratings on this issue has been made to Moody's Investors Service, Inc.
and Standard & Poor's Corporation. An explanation of the significance of such ratings may be obtained
from the company furnishing the rating. The ratings reflect only the respective views of such organizations
and the City makes no representation as to the appropriateness of the ratings. There is no assurance that such
ratings will continue for any given period of time or that they will not be revised downward or withdrawn
entirely by either or both of such rating companies, if in the judgment of either or both companies,
circumstances so warrant. Any such downward revision or withdrawal of either or both ratings may have an
adverse effect on the market price of the Bonds.
TAX EXEMPTION
The delivery of the Bonds is subject to an opinion of Messrs. Friday, Eldredge & Clark, Little Rock,
Arkansas, Bond Counsel to the City ("Bond Counsel"), to the effect that interest on the Bonds is exempt
from all present Federal income taxes under existing statutes, rulings, regulations and court decisions. The
laws, regulations, court decisions and administrative regulations and rulings upon which the conclusion
stated in Bond Counsel's opinion will be based are subject to change by the Congress, the Treasury
Department and later judicial and administrative decisions.
REGISTRATION AND QUALIFICATION OF BONDS FOR SALE
The sale of the Bonds has not been registered under the Federal Securities Act of 1933, as amended, in
reliance upon the exemption provided thereunder by Section 3(a) (2); and the Bonds have not been qualified
under the securities acts of any jurisdiction. The City assumes no responsibility for qualification of the Bonds
under the securities laws of any jurisdiction in which the Bonds may be sold, assigned, pledged, hypothecated
or otherwise transferred. This disclaimer of responsibility for qualification for sale or other disposition of the
Bonds shall not be construed as an interpretation of any kind with regard to the availability of any exemption
from securities registration provisions. The opinion of Bond Counsel will not include any opinion reflecting
the status of the Bonds under the securities law of any jurisdiction.
LEGAL INVESTMENTS IN ARKANSAS
No review of the laws of any state, including Arkansas, has been made to determine whether the Bonds
are legal investments for various institutions in those states. The opinion of Bond Counsel will not include
any opinion respecting the legality of investment for various institutions in those states.
LEGAL OPINIONS AND NO -LITIGATION CERTIFICATE
The City will furnish a complete transcript of proceedings had incident to the authorization and
issuance of the Bonds, including the unqualified approving legal opinion of Bond Counsel, to the effect that
the Bonds are valid and legally binding obligations of the City, and, to like effect and to the effect that the
interest on the Bonds is exempt from Federal income taxation under existing statutes, regulations, rulings
and court decisions. The customary closing papers, including a certificate to the effect that no litigation of
any nature has been filed or is then pending to restrain the issuance and delivery of the Bonds, or which would
affect the provision made for their payment or security, or in any manner questioning the validity of said
Bonds or the coupons appertaining thereto, will also be furnished. Bond Counsel was not requested to
participate, and did not take part, in the preparation of the Notice of Sale and Bidding Instructions, the
Official Bid Form and the Official Statement, and such firm has not assumed any responsibility with respect
19
thereto or undertaken independently to verify any of the information contained therein, except that, in its
capacity as Bond Counsel, such firm has reviewed the information describing the Bonds in the Official
Statement to verify that such description conforms to the provisions of the bond resolution. The legal fees to
be paid Bond Counsel for services rendered in connection with the issuance of the Bonds are contingent on
the sale and delivery of the Bonds and will be paid from Bond proceeds. The legal opinion will be printed on
the Bonds. All other expenses of issuance will be paid from Bond proceeds.
AUTHENTICITY OF FINANCIAL INFORMATION
The financial data and other information contained herein have been obtained from the City's records,
audited financial statements and other sources which are believed to be reliable. There is no guarantee that
any of the assumptions or estimates contained herein will be realized. All of the summaries of the statutes,
documents and resolutions contained in this Official Statement are made subject to all of the provisions of
such statutes, documents and resolutions. These summaries do not purport to be complete statements of such
provisions and reference is made to such documents for further information. Reference is made to original
documents in all respects.
CERTIFICATION OF THE OFFICIAL STATEMENT
At the time of payment for and delivery of the Bonds, the Purchaser will be furnished a certificate,
executed by proper officers, acting in their official capacity, to the effect that to the best of their knowledge
and belief: (a) the descriptions and statements of or pertaining to the City contained in its Official Statement,
and any addenda, supplement or amendment thereto, on the date of such Official Statement, on the date of
sale of said Bonds and the acceptance of the best bid therefor, and on the date of the delivery, were and are
true and correct in all material respects; (b) insofar as the City and its affairs, including its financial affairs,
are concerned, such Official Statement did not and does not contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading; (c) insofar as the descriptions and
statements, including financial data, of or pertaining to entities, other than the City, and their activities
contained in such Official Statement are concerned, such statements and data have been obtained from
sources which the City believes to be reliable and that the City has no reason to believe that they are untrue in
any material respect; and (d) there has been no material adverse change in the financial condition of the City
since the date of the last audited financial statements of the City.
The City will furnish the Purchaser, as a part of the transcript of proceedings, a certified copy of a
resolution of the Board of Directors as of the date of the sale of the Bonds which will approve the form and
content of this Official Statement, and any addenda, supplement or amendment thereto, and authorize its
further use in the reoffering of the Bonds by the Purchaser.
ERNEST LANCASTER
Mayor
City of Fayetteville, Arkansas
ATTEST:
DARLENE M. WESTBROOK
City Clerk
City of Fayetteville, Arkansas
1i7
APPENDIX
The information contained in this Appen-
dix has been reproduced from the City of
Fayetteville, Arkansas General Fund Audit
Report for the Fiscal Year Ended Decem-
ber 31, 1976. The information as presented
represents only a part of the General Fund
Audit Report and does not purport to be a
complete statement of the City's General
Fund financial condition. Reference is made
to the complete General Fund Audit Report
for further information.
CITY OF FAYETTEVILLE, ARKANSAS
GENERAL GOVERNMENT FUNDS
TABLE OF CONTENTS
DECEMBER 31, 1976 AND 1975
Page
Number
Opinion Letter
General Fund:
Balance Sheet
Summary Statement of Revenues and Expenditures
Statement of Changes in Fund Balance
Statement of Revenue
Summary Statement of Expenditures
Statement of Expenditures
Notes to Financial Statements
Public Works Fund:
Balance Sheet
Summary Statement of Revenues and Expenditures
Statement of Changes in Fund Balance
Statement of Revenues
Statement of Expenditures
Sanitation Fund:
Balance Sheet
Statement of Operations
Statement of Changes in Retained
earnings and Contributions
Statement of Changes in Cash Operating Funds
Statement of Changes in Sanitation Revenue
Bond Fund Assets
Statement of Changes in Sanitation Depreciation
Fund Assets
Statement of Operating Expenses
Statement of Changes in Property, Plant and Equipment
Notes to Financial Statements
1962 General Obligation Bond Fund:
Balance Sheet
Statement of Revenues and Expenditures
Statement of Changes in Funds to be Provided
and Fund Balance
Notes to Financial Statements
Capital Improvement Fund:
Balance Sheet
Statement of Revenues and Expenditures
Statement of Changes in Fund Balance
2
3
4
5- 6
7
8-17
18
19
20
21
22
23-24
27
28
29
30
31-32
33
34
35
36
37
38
39
40
41
CITY OF FAYETTEVILLE, ARKANSAS
GENERAL GOVERNMENT FUNDS
TABLE OF CONTENTS
DECEMBER 31, 1976 AND 1975
Page
Number
Replacement Fund:
Balance Sheet
42
Statement of Revenues
and Expenditures
43
Statement of Changes
in Fund Balance
44
Off Street Parking Fund:
Balance Sheet
45
Statement of Revenues
and Expenditures
46
Statement of Changes
in Funds to be Provided
and Fund Balance
47
Sewer Assessment Fund:
Balance Sheet 48
Statement of Cash Receipts and Disbursements 49
Statement of Changes in Fund Balance 50
1970 Street Improvement Fund:
Balance Sheet 51
Statement of Cash Receipts and Disbursements 52
Statement of Changes in Fund Balance 53
Police Pension and Relief Fund:
Balance Sheet
54
Statement of Cash Receipts and
Disbursements
55
Statement of Changes in Reserve
and Retirement
56
Firemen's Pension and Relief Fund:
Balance Sheet
57
Statement of Cash Receipts and
Disbursements
58
Statement of Changes in Reserve
for Retirement
59
Municipal Judge Retirement Fund:
Balance Sheet
60
Statement of Cash Receipts and
Disbursements
61
Statement of Changes in Reserve
for Retirement
62
1971 Municipal Airport Construction
Fund:
Balance Sheet
63
Statement of Changes in Appropriated
Funds
64
1971 Municipal Airport Revenue Loan
Obligation Fund:
Balance Sheet
65
Statement of Cash Receipts and
Disbursements
66
Statement of Changes in Funds to be Provided
67
Notes to Financial Statements
68
CITY OF FAYETTEVILLE, ARKANSAS
GENERAL GOVERNMENT FUNDS
TABLE OF CONTENTS
DECEMBER 31, 1976 AND 1975
Page
Number
1974 Airport Improvement Revenue Bond Fund:
Balance Sheet
69
Statement of Cash Receipts and Disbursements
70
Statement of Changes in Funds to be Provided
71
Note to Financial Statements
72
Industrial Park Fund:
Balance Sheet
73
Statement of Revenue and Expenditures
74
Statement of Changes in Retained Earrings
and Contributions
75
Notes to Financial Statements
76
Revenue Sharing Fund:
Balance Sheet
77
Statement of Revenues and Expenditures
78
Statement of Changes in Fund Balance
79
Lake Fayetteville Park Development Fund:
Balance Sheet
80
Statement of Revenues and Expenditures
81
Statement of Changes in Fund Balance
82
Arkansas Avenue Improvement Fund:
Balance Sheet
83
Statement of Receipts and Disbursements
84
Statement of Changes in Fund Balance
85
Payroll Fund:
Balance Sheet
86
Statement of Revenue and Expenditures
87
Returned Check Fund:
Balance Sheet
88
Statement of Changes in Property, Plant and Equipment:
General Fund
89
Public Works Fund
89
Off Street Parking Fund
89
All General Government Funds:
Notes to Financial Statements
90-91
DOUGLAS WALKER & CO.
CERTIFIED PUBLIC ACCOUNTANTS
The Honorable Mayor and
Board of Directors
City of Fayetteville
We have examined the financial statements of the various General Government
Funds of the City of Fayetteville, Arkansas for the years ended December
31, 1976 and 1975, as listed in the table of contents. Our examination
was made in accordance with generally accepted auditing standards and
the "Audit Guide for Revenue Sharing Recipients" issued by the Office of
Revenue Sharing, U.S. Department of the Treasury, and accordingly included
such tests of the accounting records and such other auditing procedures
as were considered necessary in the circumstances.
It is the practice of the City of Fayetteville to keep cumulative balances
of accounts for property, plant and equipment acquisitions in the General
Fund, Public Works Fund and Off Street Parking Fund, a generally accepted
procedure in municipal accounting, which we approve; however, it was not
deemed practical to verify the aggregate accumulated balance of assets
acquired in prior years.
In our opinion, except for the above comment with respect to the cumula-
tive balances of property, plant and equipment in service; the aforemen-
tioned financial statements present fairly the financial position of the
various General Government Funds of the City of Fayetteville, Arkansas
at December 31, 1976 and 1975, and the results of operations and changes
in cash position, as listed in the table of contents for the years then
ended, in conformity with generally accepted accounting principles
applied on a basis consistent with that of the preceding year.
The accompanying supplemental schedules listed in the table of contents
are not necessary for a fair presentation of the financial statements,
but are presented as additional analytical data. These schedules have
been subjected to the tests and other auditing procedures applied in the
examination of the financial statements mentioned above and, in our
opinion, are fairly stated in all material respects in relation to the
financial statements taken as a whole.
DOUGLA} ALKER & CO.
Fayetteville, Arkansas
April 29, 1977
CITY OF FAYETTEVILLE, ARKANSAS
GENERAL FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Change funds $ 585 $ 585
Cash 80,059 31,892
Time certificates of deposit 589,000 404,000
Accounts receivable 222,526 184,765
Accrued interest 7,482 9,547
Federal Aviation Administration grants 11,804
Due from other funds 63,581 84,221
$ 963,233 $ 726,814
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable
Due to other funds
Fund balance
$ 37,757 $ 14,711
4,796 10,079
42,553 24,790
920,680 702,024
$ 963,233 $ 726,814
The Notes to Financial Statements are an integral part of this statement.
-2-
CITY OF FAYETTEVILLE, ARKANSAS
GENERAL FUND
SUMMARY STATEMENTS OF REVENUES AND EXPENDITURES
Year
EndedDecemberecember
31
1975
1976
Budgeted
Actual
Actual
REVENUES
General property taxes
$ 255,000
$ 251,057 $
236,083
Franchise taxes
223,500
339,133
233,400
Licenses and permits
64,500
175,721
65,353
Fines and penalties
187,000
184,229
198,227
Use of money and property
154,000
189,929
182,548
Other revenues
524,747
481,591
698,952
Total revenues
1,408,747
1,621,660
1,614,563
EXPENDITURES
General government
308,899
296,668
287,972
Public safety
862,317
849,442
848,941
Recreation
110,922
112,220
114,088
Miscellaneous
163,249
144,674
286,172
Total expenditures
1,445,387
1,403,004
1,537,173
EXCESS OF REVENUES OVER EXPENDITURES
$ (36,640) $ 218,656 $ 77,390
The Notes to Financial Statements are an integral part of this statement.
-3-
CITY OF FAYETTEVILLE, ARKANSAS
GENERAL FUND
STATEMENTS OF CHANGES IN FUND BALANCE
Year Ended December 31,
1976 1975
FUND BALANCE - BEGINNING OF YEAR
Add:
Excess of revenues over expenditures
FUND BALANCE - END OF YEAR
$ 702,024 $ 624,634
218,656 77,390
$ 920,680 $ 702,024
The Notes to Financial Statements are an integral part of this statement.
-4-
CITY OF FAYETTEVILLE, ARKANSAS
GENERAL FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1976 AND 1975
1. AIRPORT REVENUE
The net revenue from operations on Drake Field is pledged for retirement of
the revenue loans of the 1971 Municipal Airport Revenue Loan Obligation Fund.
The City has followed a policy of transferring only amounts sufficient to
pay current principal and interest to this fund. Net revenues from operations
of Drake Field which have not been transferred are as follows:
Year Ended December 31, Amount
1972
$ 662
1973
6,564
1974
18,337
1975
53,847
1976
46,586
$125,996
-18-
CITY OF FAYETTEVILLE, ARKANSAS
PUBLIC WORKS FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Cash in bank $ 67,581
Accounts receivable 124,438 $ 92,065
Time certificates of deposit 221,000 90,000
Accrued interest receivable 2,734 4,041
Due from other funds 32,247 54,409
Inventories - at average cost 16,987 18,461
$ 464,987 $ 298,976
LIABILITIES AND FUND BALANCE
Bank overdraft
$ 7,845
Accounts payable
$ 40,816
50,027
Accrued payroll
5,071
Due to other funds
122
23,564
Deposits for street improvements
23,411
10,197
69,420
91,633
Fund balance
395,567
207,343
$ 464,987
$ 298,976
The Notes to Financial Statements are an integral part of this statement.
_79-
CITY OF FAYETTEVILLE, ARKANSAS
PUBLIC WORKS FUND
SUMMARY STATEMENTS OF REVENUES AND EXPENDITURES
Year Ended December 31,
1976 1975
Budgeted Actual Actual
REVENUES
General property tax
Charges for service
Other revenues
Total revenues
EXPENDITURES
Street department:
Personnel services
Materials and supplies
Contractual services
Capital outlay
Total street department
expenditures
Shop department:
Personnel services
Materials and supplies
Contractual services
$ 112,000 $ 120,156 $ 112,420
380,209 489,857 430,474
610,700 560,610 628,446
1,102,909 1,170,623 1,171,340
258,215 233,498 264,015
140,657 196,000 243,573
371,500 248,230 343,208
87,725 3,000
858,097 680,728 850,796
59,895 56,870 53,342
178,775 227,289 190,090
7,954 17,512 8,450
Total shop department
expenditures 246,624 301,671 251,882
Total expenditures 1,104,721 982,399 1,102,678
EXCESS(DEFICIENCY) OF REVENUES
OVER EXPENDITURES
$ (1,812) $ 188,224 $ 68,662
The Notes to Financial Statements are an integral part of this statement.
-20-
CITY OF FAYETTEVILLE, ARKANSAS
PUBLIC WORKS FUND
STATEMENTS OF CHANGES IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
Add:
Excess of revenues over expenditures
FUND BALANCE - END OF YEAR
Year Ended December 31,
1976 1975
$ 207,343 $ 138,681
188,224 68,662
$ 395,567 $ 207,343
The Notes to Financial Statements are an integral part of this statement.
-21-
CITY OF FAYETTEVILLE, ARKANSAS
1962 GENERAL OBLIGATION BOND FUND
BALANCE SHEET
December 31,
1976 1975
ASSETS
Accounts receivable $ 69,366
Savings account 31,591
Time certificate of deposit $ 156,447 532,000
Accrued interest receivable 2,281 5,998
Due from other funds 3,954
$ 158,728 $ 642,909
LIABILITIES AND FUND BALANCE
Bank overdraft $ 17,116 $ 36,347
Tax rebate payable 1,576
Bonds payable 409,000
Interest due in future years 7,075
Due to other funds 714 2,934
19,406 455,356
Fund balance 139,322 187,553
$ 158,728 $ 642,909
The Notes to Financial Statements are an integral part of this statement.
-35-
CITY OF FAYETTEVILLE, ARKANSAS
1962 GENERAL OBLIGATION BOND FUND
STATEMENT OF REVENUES AND EXPENDITURES
Year Ended December 31,
1976 1975
Budgeted Actual Actual
REVENUES
Four mill tax levy
Interest
Total revenues
$ 2,737 $ 187,196
3 000 23,609 32,206
3,000 26,346 219,402
EXPENDITURES
Bond principal 409,000 36,000
Interest and paying agent's fees 1,000 7,627 15,453
Legal and administrative 767
Tax refunds 73,258
Total expenditures 1,000 490,652 51,453
E 2,000 (464,306) 167,949
ADD BACK OTHER EXPENDITURES APPLIED TO
LIABILITY ACCOUNTS ON BALANCE SHEET
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES
416,075 51,319
(48,231) E 219,268
The Notes to Financial Statements are an integral part of this statement.
-36-
CITY OF FAYETTEVILLE, ARKANSAS
1962 GENERAL OBLIGATION BOND FUND
STATEMENT OF CHANGES IN FUNDS TO BE PROVIDED AND FUND BALANCE
December 31,
1976 1975
FUNDS TO BE PROVIDED
FUNDS TO BE PROVIDED - BEGINNING OF YEAR
Less: Excess of revenue over expenditures
Adjustment of interest and paying agents
fees due to prepayment of bonds
Add: excess revenues transferred to fund balance
FUNDS TO BE PROVIDED - END OF YEAR
FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
Add: Excess revenues transferred from
funds to be provided
Excess (deficiency) of revenue over
expenditures
FUND BALANCE - END OF YEAR
$ 104,439
219,268
72,724
291,992
187,553)
187,553
$ -0-
$ 187,553 $ -0-
187,553
48,231)
139,322 $ 187,553
The Notes to Financial Statements are an integral part of this statement.
-37-
CITY OF FAYETTEVILLE, ARKANSAS
1962 GENERAL OBLIGATION BOND FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1976 AND 1975
FUND BALANCE
In accordance with a court order dated July 29, 1976, the City refunded
$73,258 of excess collections from a four mill tax levy for retirement of
1962 general obligation bonds. The remaining fund balance of $158,728 is
to be transferred to the City's General Fund and restricted for use in
providing fire and police protection and improving the municipal airport.
-38-
CITY OF FAYETTEVILLE, ARKANSAS
CAPITAL IMPROVEMENT FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Cash in bank $ 323 $ 6,178
Time certificates of deposit 117,000 102,000
Accrued interest receivable 1,612 1,839
Due from other funds 1,091
$ 118,935 $ 111,108
LIABILITIES AND FUND BALANCE
Liabilities
Due to other funds $ 38,000 $ 38,000
Fund balance 80,935 73,108
$ 118,935 $ 111,108
The Notes to Financial Statements are an integral part of this statement.
-39-
CITY OF FAYETTEVILLE, ARKANSAS
CAPITAL IMPROVEMENT FUND
STATEMENTS OF REVENUES AND EXPENDITURES
Year Ended December 31,
1976 1975
Budgeted Actual Actual
REVENUES
Delinquent taxes
Interest on investments
EXCESS OF REVENUES
OVER EXPENDITURES
$ 100 $ 686
6,000 $ 7,827 7,056
$ 6,100 $ 7,827 $ 7,742
The Notes to Financial Statements are an integral part of this statement,
-40-
4
CITY OF FAYETTEVILLE, ARKANSAS
CAPITAL IMPROVEMENT FUND
STATEMENTS OF CHANGES IN FUND BALANCE
Year Ended December 31,
1976 1975
FUND BALANCE - BEGINNING OF YEAR
Add: net revenues
FUND BALANCE - END OF YEAR
$ 73,108 $ 65,366
7,827 7,742
$ 80,935 $ 73,108
The Notes to Financial Statements are an integral part of this statement.
-41-
CITY OF FAYETTEVILLE, ARKANSAS
REPLACEMENT FUND
BALANCE SHEETS
December 31,
7976 1975
ASSETS
Cash in banks $ 2,485 $ 7,393
Savings account 19,640 18,642
Time certificates of deposit 151,000 137,000
Accrued interest receivable 3,197 2,088
176,322 $ 165,123
LIABILITIES AND FUND BALANCE
Due to other funds $ 74
Fund balance $ 176,322 165,049
$ 176,322 $ 165,123
The Notes to Financial Statements are an integral part of this statement.
-42-
CITY OF FAYETTEVILLE, ARKANSAS
REPLACEMENT FUND
STATEMENTS OF REVENUES AND EXPENDITURES
Year Ended9�cember 31,
7
Budgeted Actual Actual
REVENUES
Interest
EXCESS OF REVENUES OVER EXPENDITURES
$ 7,800 $ 11,273 $ 10,905
$ 7,800 $ 11,273 $ 10,905
The Notes to Financial Statements are an integral part of this statement.
-43-
CITY OF FAYETTEVILLE, ARKANSAS
REPLACEMENT FUND
STATEMENTS OF CHANGES IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
Add: Excess of revenues over expenditures
FUND BALANCE - END OF YEAR
Year Ended December 31,
1976 1975
$ 165,049 $ 154,144
11,273 10,905
$ 176,322 $ 165,049
The Notes to Financial Statements are an integral part of this statement.
-44-
CITY OF FAYETTEVILLE, ARKANSAS
OFF STREET PARKING FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Cash $ 2,459 $ 4,485
Time certificates of deposit 3,000
$ 5,459 $ 4,485
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable $ 1,454
Fund balance 4,005
$
4,485
$ 5,459
$
4,485
The Notes to Financial Statements are an integral part of this statement.
-45-
CITY OF FAYETTEVILLE, ARKANSAS
OFF STREET PARKING FUND
STATEMENTS OF REVENUES AND EXPENDITURES
Year Ended December 31,
1976 1975
REVENUES
Parking lot revenues
Interest
EXPENDITURES
Parking lot rent
Interest expense
Miscellaneous
Transfers to General Fund
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES
$ 14,389
38
14,427
$ 25,038
25,038
10,652 14,821
311
255 28
4,000 3,000
14,907 18,160
$ (480) $ 6,878
The Notes to Financial Statements are an integral part of this statement.
-46-
CITY OF FAYETTEVILLE, ARKANSAS
OFF STREET PARKING FUND
STATEMENTS OF CHANGES IN FUNDS TO BE PROVIDED
AND FUND BALANCE
Year Ended December 31,
1976 1975
FUNDS TO BE PROVIDED
BALANCE - BEGINNING OF YEAR $ 2,393
Less: excess of revenues over expenditures 6 878
4,485)
Add: excess transferred to fund balance 4,485
BALANCE - END OF YEAR $ -0-
FUND BALANCE
BALANCE - BEGINNING OF YEAR $ 4,485 $ -0-
Add: excess funds transferred from
funds to be provided 4,485
excess (deficiency) of revenue over
expenditures for the year (480)
BALANCE - END OF YEAR $ 4,005 $ 4,485
The Notes to Financial Statements are an integral part of this statement.
-47-
CITY OF FAYETTEVILLE, ARKANSAS
SEWER ASSESSMENT FUND
BALANCE SHEETS
December
31,
1976
1975
ASSETS
Cash in bank
$ 642 $
3,710
Special assessment receivable
4,733
5,141
Time certificate of deposit
14,500
6,000
Accrued interest on assessments
860
628
Accrued interest on investments
194
46
Due from other funds
274
20,929 $
15,799
LIABILITIES AND FUND BALANCE
Due to other funds
Fund balance
$ 3,924
17,005 $ 15,799
$ 20,929 $ 15,799
The Notes to Financial Statements are an integral part of this statement.
-48-
CITY OF FAYETTEVILLE, ARKANSAS
SEWER ASSESSMENT FUND
STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
Year Ended December 31,
1976
1975
CASH BALANCE - BEGINNING OF YEAR
$ 3,710 $
614
RECEIPTS
Principal payments on property assessments
408
1,271
Interest collected on property assessments
262
838
Interest on investments
564
274
Collections of due from other funds
274
713
Maturities of certificates of deposit
12,000
Advances from Water and Sewer Department
3,924
17,432
3,096
21,142
3,710
DISBURSEMENTS
Purchase of certificate of deposit
20,500
CASH BALANCE - END OF YEAR
$ 642 $
3,710
The Notes to Financial Statements are an integral part of this statement.
-49-
CITY OF FAYETTEVILLE, ARKANSAS
SEWER ASSESSMENT FUND
STATEMENTS OF CHANGES IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
Add: interest earned
FUND BALANCE - END OF YEAR
Year Ended December 31,
1976 1975
$ 15,799 $ 14,581
1,206 1,218
$ 17,005 $ 15,799
The Notes to Financial Statements are an integral part of this statement.
-50-
CITY OF FAYETTEVILLE, ARKANSAS
1970 STREET IMPROVEMENT FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Cash in bank
Account receivable - First National Bank
Street assessments receivable
Accrued interest on street assessments
LIABILITIES AND FUND BALANCE
Liabilities
Bonds payable
Interest payable over life of bonds
Total liabilities
Fund balance
$ 5,241 $ 14,848
436
27,392 32,772
4,169 3,618
$ 37,238 $ 51,238
$ 15,699
950
16,649
$ 37,238 34,589
$ 37,238 $ 51,238
The Notes to Financial Statements are an integral part of this statement.
-51-
CITY OF FAYETTEVILLE, ARKANSAS
1970 STREET IMPROVEMENT FUND
STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
Year Ended December 31,
1976 1975
CASH BALANCE - BEGINNING OF YEAR 14848 $ 13,559
RECEIPTS
Principal payments on
Interest payments on
Interest on savings
Transfer from savings
Transfer from Revenue
Total receipts
street assessments 5,380 18,758
street assessments 2,086 2,610
160
account 11,158
Sharing Fund 4,002
7,466 36,688
TOTAL CASH FUNDS AVAILABLE
22,314
50,247
DISBURSEMENTS
Principal payment on bonds
15,699
9,648
Interest paid on bonds
927
510
Construction contracts
19,864
Engineering
12
650
Legal and administrative
229
Due to other funds
4,498
Duplicate interest payment - due from bank
435
Total disbursements
17,073
35,399
CASH BALANCE - END OF YEAR
$ 5,241 $ 14,848
The Notes to Financial Statements are an integral part of this statement.
-52-
CITY OF FAYETTEVILLE, ARKANSAS
1970 STREET IMPROVEMENT FUND
STATEMENTS OF CHANGES IN FUND BALANCE
Year Ended December 31,
1976 1975
FUND BALANCE - BEGINNING OF YEAR $ 34,589 $ 30,795
Add revenues:
Street assessments billed 17,391
Interest earned on street assessments 2,637 2,773
Interest earned on savings 160
Transfer from Revenue Sharing Fund 4,002
Reduction in interest to be paid over life of bonds 24 210
2,661 24,536
37,250 55,331
Deduct:
.Expenditures -
Construction contracts 19,863
Engineering 650
Legal and administrative 12 229
12 20,742
FUND BALANCE - END OF YEAR $ 37,238 $ 34,589
The Notes to Financial Statements are an integral part of this statement.
-53-.
CITY OF FAYETTEVILLE, ARKANSAS
POLICE PENSION AND RELIEF FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Cash in bank $ 9,807 $ 17,450
Time certificates of deposit 655,000 555,000
Accounts receivable 12,899 18,951
Accrued interest receivable on investments 19,857 11,398
Due from other funds 750 997
Investments (market $230,561 and $200,790 respectively) 280,761 280,761
$ 979,074 $ 884,557
LIABILITIES AND RESERVE FOR RETIREMENT
Liabilities
Officers' refundable contributions
Due to other funds
Reserve for retirement
$ 56,007 $ 50,769
434
56,441 50,769
922,633 833,788
$ 979,074 $ 884,557
The Notes to Financial Statements are an integral part of this statement.
-54-
CITY OF FAYETTEVILLE, ARKANSAS
POLICE PENSION AND RELIEF FUND
STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
Year Ended December 31,
1976 1975
CASH BALANCE - BEGINNING OF YEAR $ 17,450 $ 34,843
RECEIPTS
Maturity of investments 305,000 243,000
Interest 53,732 54,223
General property tax - one mill levy 56,615 30,191
Receipt of amounts due from other funds 997 2
Officerscontributions 12,967 14,190
Court fines and fees 30,739 31,855
Other 25
Total receipts 460,075 373,461
TOTAL CASH FUNDS AVAILABLE 477,525 408,304
DISBURSEMENTS
Pensions paid 60,673 49,040
Purchase of certificates of deposit 405,000 340,000
Officer contribution refunds 2,045 1,807
Administrative expense 7
Total disbursements 467,718 390,854
CASH BALANCE - END OF YEAR $ 9,807 $ 17,450
The Notes to Financial Statements are an integral part of this statement.
-55-
CITY OF FAYETTEVILLE, ARKANSAS
POLICE PENSION AND RELIEF FUND
STATEMENTS OF CHANGES IN RESERVE FOR RETIREMENT
Year Ended December 31,
1976 1975
RESERVE FOR RETIREMENT - BEGINNING OF YEAR
Add:
Transfers from officers' contributions
upon retirement
$ 833,788 $ 743,984
5,684 5,800
839,472 749,784
Excess of revenues over expenditures
Revenues:
Interest
62,191
54,977
General property taxes - one mill levy
50,879
46,799
Court fines and fees
30,739
31,275
Miscellaneous
25
Total revenues
143,834
— 133,051'
Expenditures:
Pensions paid
60,673
49,040
Administrative expense
7
Total expenditures
60,673
49,047
Excess of revenues over expenditures
RESERVE FOR RETIREMENT - END OF YEAR
83,161 84,004
$ 922,633 $ 833,788
The Notes to Financial Statements are an integral part of this statement.
-56-
CITY OF FAYETTEVILLE, ARKANSAS
FIREMAN'S PENSION AND RELIEF FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Cash in bank $ 284 $ 16,872
Property tax receivable 12,899 16,600
Time certificate of deposit 798,199 664,699
Accrued interest receivable on investments 14,402 20,381
Due from other funds 750 997
$ 826,534 $ 719,549
LIABILITIES AND RESERVE FOR RETIREMENT
Liabilities
Officers' refundable contributions $ 59,737 $ 55,719
Part-time fireman's refundable contributions 256 255
Due to other funds 434
60,427 55,974
Reserve for retirement 766,107 663,575
$ 826,534 $ 719,549
The Notes to Financial Statements are an integral part of this statement.
-57-
CITY OF FAYETTEVILLE, ARKANSAS
FIREMAN'S PENSION AND RELIEF FUND
STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
Year Ended December 31,
1976 1975
CASH BALANCE - BEGINNING OF YEAR $ 16,872 $ 27,908
RECEIPTS
Maturity of investments
303,699
374,468
Interest
61,927
32,164
General property tax - one mill levy
54,263
30,191
Receipt of amounts due from other funds
997
Officers' contributions
9,485
9,532
Part-time firemen's contribution
47
42
State Insurance Commission
32,496
24,709
Miscellaneous
25
Total receipts
462,939
471,106
TOTAL CASH FUNDS AVAILABLE
479,811
499,014
DISBURSEMENTS
Pensions paid
Purchase of investments
Officer contribution refunds
Administrative expense
Total disbursements
CASH BALANCE - END OF YEAR
42,087
437,199
241
479,527
33,274
448,700
145
23
482,142
$ 284 $ 16,872
The Notes to Financial Statements are an integral part of this statement.
-58-
CITY OF FAYETTEVILLE, ARKANSAS
FIREMEN'S PENSION AND RELIEF FUND
STATEMENTS OF CHANGES IN RESERVE FOR RETIREMENT
Year Ended
December 31,
1976
1975
RESERVE FOR RETIREMENT - BEGINNING OF YEAR
$ 663,575
$ 575,070
Add:
Transfers from officer's contributions
upon retirement
5,270
2,043
668,845
577,113
Excess of revenues over expenditures
Revenues:
Interest
55,948
48,251
General property taxes - one mill levy
50,879
46,799
State Insurance Commission
32,496
24,709
Miscellaneous
25
Total revenue
139,348
119,759
Expenditures:
Pensions paid
42,086
33,274
Administrative expense
23
Total expenditures
42,086
33,297
Excess of revenues over expenditures
RESERVE FOR RETIREMENT - END OF YEAR
97,262
$ 766,107
The Notes to Financial Statements are an integral part of this statement.
-59-
86,462
$ 663,575
CITY OF FAYETTEVILLE, ARKANSAS
MUNICIPAL JUDGE RETIREMENT FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Cash in bank $ 1,655 $ 1,024
Time certificates of deposit 24,500 20,000
Accounts receivable 584
Accrued interest 384 150
Savings account _ 3,496 3,319
$ 30,035 $ 25,077
RESERVE FOR RETIREMENT $ 30,035 $ 25,077
The Notes to Financial Statements are an integral part of this statement.
-60-
CITY OF FAYETTEVILLE, ARKANSAS
MUNICIPAL JUDGE RETIREMENT FUND
STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
CASH BALANCE - BEGINNING OF YEAR
Receipts:
Interest
Court fines and fees
Disbursements:
Pensions paid
Purchase of investments
Payment of due to other funds
CASH. BALANCE - END OF YEAR
Year Ended December 31,
1976 1975
$ 1,024 $ 689
1,163 1,200
10,219 5,986
12,406 7,875
6,251 6,251
4,500
600
10,751 6,851
$ 1,655 $ 1,024
The Notes to Financial Statements are an integral part of this statement.
-61-
CITY OF FAYETTEVILLE, ARKANSAS
MUNICIPAL JUDGE RETIREMENT FUND
STATEMENTS OF CHANGES IN RESERVE FOR RETIREMENT
Year Ended December 31,
1976 1975
RESERVE FOR RETIREMENT - BEGINNING OF YEAR $ 25,077 $ 23,580
Additions:
Interest 1,574 1,519
Court fines and fees 9,635 6,229
36,286 31,328
Reductions:
Pensions paid 6,251 6,251
RESERVE FOR RETIREMENT - END OF YEAR $ 30,035 $ 25,077
The Notes to Financial Statements are an integral part of this statement.
-62-
CITY OF FAYETTEVILLE, ARKANSAS
1971 MUNICIPAL AIRPORT CONSTRUCTION FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Federal grants receivable
LIABILITIES AND APPROPRIATED FUNDS
Liabilities
Due to other funds
Appropriated funds
$ 28,081 $ 28,081
$ 14,216 $ 14,216
13,865 13;865
$ 28,081 $ 28,081
The Notes to Financial Statements are an integral part of this statement.
-63-
CITY OF FAYETTEVILLE, ARKANSAS
1971 MUNICIPAL AIRPORT CONSTRUCTION FUND
STATEMENTS OF CHANGES IN APPROPRIATED FUNDS
Year Ended December 31,
1976 1975
APPROPRIATED FUNDS - BEGINNING OF YEAR
APPROPRIATED FUNDS - END OF YEAR
13,865 $ 13,865
$ 13,865 $ 13,865
The Notes to Financial Statements are an integral part of this statement.
-64-
CITY OF FAYETTEVILLE, ARKANSAS
1971 MUNICIPAL AIRPORT REVENUE LOAN OBLIGATION FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Funds to be provided
LIABILITIES
Revenue loan payable
Interest to be paid over life of loan
$ 52,025 $ 82,425
$ 47,000 $ 72,000
5,025 10,425
$ 52,025 $ 82,425
The Notes to Financial Statements are an integral part of this statement.
-65-
CITY OF FAYETTEVILLE, ARKANSAS
1971 MUNICIPAL AIRPORT REVENUE LOAN OBLIGATION FUND
STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
Year Ended December 31,
1976 1975
CASH BALANCE - BEGINNING OF YEAR
RECEIPTS
Transfers from General Fund
30,400 31,200
30,400 31,200
DISBURSEMENTS
Principal payment on loan 25,000 24,000
Interest paid on loan 5,400 7,200
Total disbursements 30,400 31,200
CASH BALANCE - END OF YEAR
$ -0- $ -0-
The Notes to Financial Statements are an integral part of this statement.
-66-
CITY OF FAYETTEVILLE, ARKANSAS
1971 MUNICIPAL AIRPORT REVENUE LOAN OBLIGATION FUND
STATEMENTS OF CHANGES IN FUNDS TO BE PROVIDED
Year Ended December 31,
1976 1975
BALANCE, BEGINNING OF THE YEAR $ 82,425 $ 113,625
Less: transfers from General Fund 30,400 31,200
BALANCE, END OF YEAR $ 52,025 $ 82,425
The Notes to Financial Statements are an integral part of this statement.
-67-
CITY OF FAYETTEVILLE, ARKANSAS
1971 MUNICIPAL AIRPORT REVENUE LOAN OBLIGATION FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1976 AND 1975
1. REVENUE LOAN PAYABLE
Revenue loan payable to Mcllroy Bank is as follows:
Due Date Interest Rate Amount
10-1-77 7 1/2% 27,000
10-1-78 7 1/2% 20,000
$ 47,000
This loan obligation is not a general obligation of the City. This obligation
is payable from net revenues from operation of Drake Field. The City has
followed a policy of transferring only amounts sufficient to pay current prin-
cipal and interest from the General Fund. Net revenues from operations of
Drake Field which have not been transferred are as follows:
Year Ended December 31, Amount
1972 662
1973 6,564
1974 18,337
1975 53,847
1976 46,586
$ 125,996
-68-
CITY OF FAYETTEVILLE, ARKANSAS
1974 AIRPORT IMPROVEMENT REVENUE BOND FUND
BALANCE SHEETS
ASSETS
Cash in bank
Time certificate of deposit
FUNDS TO BE PROVIDED
LIABILITIES
Bonds payable
Interest to be paid over life of loan
Unearned rentals
December 31,
1976 1975
$ 125 $ 7,125
7,000
7,125 7,125
52,498 59,611
$ 59,623 $ 66,736
$ 42,674 $ 46,665
13,437 16,559
3,512 3,512
$ 59,623 $ 66,736
The Notes to Financial Statements are an integral part of this statement.
—69—
CITY OF FAYETTEVILLE, ARKANSAS
1974 AIRPORT IMPROVEMENT REVENUE BOND FUND
STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
Year Ended December 31,
1976 1975
CASH BALANCE - BEGINNING OF YEAR
RECEIPTS
Rent
$ 7,125 $ 7,125
7,024 7,024
14,149 14,149
DISBURSEMENTS
Principal payments on bonds 3,992 3,835
Interest payments on bonds 3,032 3,189
Purchase of investments 7,000
14,024 7,024
CASH BALANCE - END OF YEAR $ 125 $ 7,125
The Notes to Financial Statements are an integral part of this statement.
-70-
CITY OF FAYETTEVILLE., ARKANSAS
1974 AIRPORT IMPROVEMENT REVENUE BOND FUND
STATEMENTS OF CHANGES IN FUNDS TO BE PROVIDED
BALANCE - BEGINNING OF YEAR
Less: Rental income
Interest payments to be provided
BALANCE - END OF YEAR
Year Ended
1976
$ 59,611
7,024
89
7,113
$ 52,498
December 31,
1975
$ 66,261
6,650
6,650
$ 59,611
The Notes to Financial Statements are an integral part of this statement.
-71-
CITY OF FAYETTEVILLE, ARKANSAS
1974 AIRPORT IMPROVEMENT REVENUE BOND FUND
NOTE TO FINANCIAL STATEMENTS
DECEMBER 31, 1976 AND 1975
1. REVENUE BONDS PAYABLE
The 1974 Airport Improvement Revenue Bonds consists of two 6 1/2% bonds
payable annually on July 1 as follows:
Holder Amount
First National Bank 1,337
Fayetteville, Arkansas
Due in
One Year Payable
$---2-9T-26 $3,513 annually including
interest
Mcllroy Bank 21,337 2,126 $3,513 annually including
Fayetteville, Arkansas interest
The bonds are not a general obligation of the City. The bonds are payable from
lease income received from lease of the hangar constructed with the proceeds of
the bonds. The City has a lease agreement on this hangar for $7,025 annually
which expires in 1984.
-72-
CITY OF FAYETTEVILLE, ARKANSAS
INDUSTRIAL PARK FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
CURRENT ASSETS
Cash in bank $ 59 $ 4,453
Deposit - State Highway Commission 100 100
Inventory - land - at average cost 634,970 645,573
$ 635,129 $ 650,126
LIABILITIES, CONTRIBUTIONS AND RETAINED EARNINGS
LIABILITIES
Due to City of Fayetteville, Water and
Sewer Department $ 46,578 $ 51,216
Loans payable - City of Fayetteville, Water
and Sewer Department 102,875 115,875
Loans payable - Fayetteville Industrial Development
Corporation 105,699 111,790
255,152 278,881
CONTRIBUTIONS 334,434 334,434
RETAINED EARNINGS 45,543 36,811
$ 635,129 $ 650,126
The Notes To Financial Statements are an integral part of this statement.
-73-
CITY OF FAYETTEVILLE, ARKANSAS
INDUSTRIAL PARK FUND
STATEMENTS OF REVENUE AND EXPENDITURES
Year Ended December 31,
1976 1975
REVENUE
Sale of land
Less: cost of land sold
Rent
Bond premium refunded
EXPENDITURES
Title insurance
EXCESS OF REVENUE OVER EXPENDITURES
$ 16,760
10,603
6,157
2,700 $ 1,800
208
8,8572,008
195
$ 8,732 $ 2,008
The Notes to Financial Statements are an integral part of this statement.
-74-
CITY OF FAYETTEVILLE, ARKANSAS
INDUSTRIAL PARK FUND
STATEMENTS OF CHANGES IN RETAINED EARNINGS AND CONTRIBUTIONS
Year Ended December 31,
1976 1975
RETAINED EARNINGS
BALANCE - BEGINNING OF YEAR AS RESTATED
Add: excess of revenue over expenditures
BALANCE - END OF YEAR
CONTRIBUTIONS
BALANCE - BEGINNING OF YEAR
Add: transfer from Water and Sewer Department
BALANCE - END OF YEAR
$ 36,811 $ 34,803
8,732 2,008
$ 45,543 $ 36,811
$ 334,434 $ 333,434
1,000
$ 334,434 $ 334,434
The Notes to Financial Statements are an integral part of this statement.
-75-
CITY OF FAYETTEVILLE, ARKANSAS
INDUSTRIAL PARK FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1976 AND 1975
Loans payable to the City of Fayetteville Water and
the Fayetteville Industrial Development Corporation
bearing loans payable from proceeds of land sales.
CITY OF FAYETTEVILLE, ARKANSAS
REVENUE SHARING FUND
.BALANCE SHEETS
December 31,
1976
1975
ASSETS
Cash in bank
$
69,793
Time certificates of deposit
$
979,000
535,000
Accrued interest receivable
2,864
921
Due from other funds
25,582
$
1,007,446
$
605,714
LIABILITIES AND FUND BALANCE
Liabilities
Bank overdraft
$
2,263
$
7,224
Accounts payable
5,739
8,002
7,224
Fund balance
999,444
598,490
$
1,007,446
6605,714
The Notes to Financial Statements are an integral. part of this statement.
-77-
CITY OF FAYETTEVILLE, ARKANSAS
REVENUE SHARING FUND
STATEMENTS OF REVENUES AND EXPENDITURES
Year Ended December 31,
1976 1975
REVENUES
Revenue sharing funds $ 590,644 $ 632,258
Interest on investments 51,848 42,354
642,492 674,612
EXPENDITURES
Operating and maintenance expenditures
Public safety
185
158,900
Public transportation
101,709
Environmental protection
800
530
Financial administration
7,089
14,245
Recreation
371
8,082
Health
1,499
8,445
284,965
Capital expenditures
Multipurpose and general government
2,798
Transportation
126,454
36,902
Environmental conservation
2,072
70,957
Public safety
102,173
108,174
Recreation
2,272
Health
2,394
74
233,093
221,177
241,538
506,142
EXCESS OF REVENUES OVER EXPENDITURES BEFORE
CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING
PRINCIPAL
400,954
168,470
Less: cumulative effect on prior years of
changing to a different method of recognizing
Revenue Sharing revenue
162,641
EXCESS OF REVENUES OVER EXPENDITURES
$ 400,954
$ 5,829
The Notes to Financial Statements are an integral part of this statement.
-78-
CITY OF FAYETTEVILLE, ARKANSAS
REVENUE SHARING FUND
STATEMENTS OF CHANGES IN FUND BALANCE
BALANCE - BEGINNING OF YEAR
Add: excess of revenues over expenditure
BALANCE - END OF YEAR
Year Ended December 31,
1976 1975
$ 598,490 $ 592,661
400,954 5,829
$ 999,444 $ 598,490
The Notes to financial Statements are an integral part of this statement.
-79-
CITY OF FAYETTEVILLE, ARKANSAS
LAKE FAYETTEVILLE PARK DEVELOPMENT FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Cash in bank
LIABILITIES AND FUND BALANCE
Fund balance
$ -0- $ 366
$ 0- $ 366
The Notes to Financial Statements are an integral part of this statement.
-80-
CITY OF FAYETTEVILLE, ARKANSAS
LAKE FAYETTEVILLE PARK DEVELOPMENT FUND
STATEMENTS OF REVENUE AND EXPENDITURES
Year Ended December 31,
1976 1975
REVENUES
Contribution from citizens
Interest on investments
EXPENDITURES
Construction contracts
Engineering
Legal and administrative
Transfer to general fund
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES
$ .28,399
60
28,459
5,169
3,074
3
$ 366
366 8,246
$ (366) $ 20,213
The Notes to Financial Statements are an integral part of this statement.
-81-
CITY OF FAYETTEVILLE, ARKANSAS
LAKE FAYETTEVILLE PARK DEVELOPMENT FUND
STATEMENTS OF CHANGES IN FUND BALANCE
Year Ended December 31,
1976 1975
FUND BALANCE - BEGINNING OF YEAR
Add: excess (deficiency) of revenue over
expenditures for the year
FUND BALANCE - END OF YEAR
$ 366 $ (19,847)
(366) 20,213
$ -0- $ 366
The Notes to Financial Statements are an integral part of this statement.
-82-
CITY OF FAYETTEVILLE, ARKANSAS
ARKANSAS AVENUE IMPROVEMENT FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Cash in bank
Time certificate of deposits
Accrued interest
LIABILITIES AND FUND BALANCE
Liabilities
Due to other funds
Fund balance
$ 530 $ 228
5,000 5,000
87 38
$ 5,617 $ 5,266
$ 5,000 $ 5,000
617 266
$ 5,617 $ 5,266
The Notes to Financial Statments are an integral part of this statement.
-83-
CITY OF FAYETTEVILLE, ARKANSAS
ARKANSAS AVENUE IMPROVEMENT FUND
STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
Year Ended December 31,
1976 1975
CASH BALANCE - BEGINNING OF YEAR
Receipts:
Maturities of investments
Due to other funds
Interest on investments
Transfers from other funds
Total cash funds available
Disbursements:
Purchase of investments
Salaries
Materials and supplies
Contractual services
CASH BALANCE - END OF YEAR
$ 228 $ 228
10,000
5,000
302 456
5,000
10,530 10,684
10,000
4,117
4,978
1,361
10,000 10,456
$ 530 $ 228
The Notes to Financial Statements are an integral part of this statement.
-84-
CITY OF FAYETTEVILLE, ARKANSAS
ARKANSAS AVENUE IMPROVEMENT FUND
STATEMENTS OF CHANGES IN FUND BALANCE
Year Ended December 31,
1976
1975
FUND BALANCE - BEGINNING OF YEAR
$ 266
$ 5,228
Add: Excess of revenues over expenditures
Revenues:
Interest on investments
351
494
Transfers from other funds
5,000
Total revenues
351
5,494
Expenditures:
Salaries
4,117
Materials and supplies
4,978
Contractual services
1,361
Total expenditures
10,456
Excess (deficit) of revenues over expenditures
351
4,962)
FUND BALANCE - END OF YEAR $ 617 $ 266
The Notes to Financial Statements are an integral part of this statement.
-85-
CITY OF FAYETTEVILLE, ARKANSAS
PAYROLL FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Cash in bank
Accounts receivable
Due from other funds
LIABILITIES
Accrued payroll taxes and insurance
Due to other funds
$ 9,592 $ 49,618
408 569
1,824
$ 10,000 $ 52,011
$ 10,000 $ 51,904
107
$ 10,000 $ 52,011
The Notes to Financial Statements are an integral part of this statement.
-86-
CITY OF FAYETTEVILLE, ARKANSAS
PAYROLL FUND
STATEMENTS OF REVENUE AND EXPENDITURES
Year Ended December 31,
1976 1975
REVENUES
Transfers from:
General Fund
Public Works Fund
Sanitation Fund
Water and Sewer Fund
Community Development Fund
Arkansas Avenue Improvement Fund
Section 8 Housing Assistance
Revenue Sharing Fund
EXPENDITURES
Gross payroll and payroll tax expense
$ 946,862 $
1,003,093
301,854
345,755
329,307
319,762
581,252
575,073
32,480
26,759
4,117
11,657
7,088
2,210,500 2,274,559
2,210,500 2,274,559
$ -0- $ -0-
The Notes to Financial Statements are an integral part of this statement.
-87-
CITY OF FAYETTEVILLE, ARKANSAS
RETURNED CHECK FUND
BALANCE SHEETS
December 31,
1976 1975
ASSETS
Cash in banks $ 650 $ 1,545
Returned checks on hand 1,010 495
$ 1,660 $ 2,040
LIABILITIES AND RESERVE FUND BALANCE
Liabilities
Due to other funds $ 160 $ 540
Reserve Fund balance
Water and Sewer Fund 1,000 1,000
Sanitation Fund 500 500
1,500 1,500
$ 1,660 $ 2,040
The Notes to Financial Statements are an integral part of this statement.
-88-
CITY OF FAYETTEVILLE, ARKANSAS
ALL GENERAL GOVERNMENT FUNDS
STATEMENTS OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT
Balance
Balance
December 31,
December 31,
1975
Additions
Retirements
1976
GENERAL FUND
Land
$
388,853
$
388,853
Buildings and structures
1,045,088
1,045,088
Hospital improvements
1,197,034
1,197,034
Airport improvements
1,164,551
$
149
1,164,700
Park improvements
402,748
5,919
408,667
Parking meters
67,679
67,679
Machinery and equipment
343,153
8;920
$
6,030
346,043
Vehicles
445,436
98,580
71,730
472,286
Furniture and fixtures
68,775
261
69,036
$
5,123,317
$
113,829
$
77,760
$
5,159,386
PUBLIC WORKS FUND
Street Department:
Land
$
37,220
$
39,737
$
76,957
Buildings and structures
20,638
20,638
Machinery and equipment
347,380
21,698
369,078
Vehicles
161,271
60,206
$
15,266
206,211
Furniture and fixtures
1,325
1,325
567,834
121,641
15,266
674,209
Shop department:
Shop building
59,770
59,770
Tools and equipment
16,001
16,001
Vehicles
2,107
4,311
2,107
4,311
Furniture and fixtures
1,984
1,984
19,862
4,311
2,107
82,066
$
647,696
$
125,952
$
17,373
$
756,275
OFF STREET PARKING FUND
Land $ 167,730 $ 167,730
Buildings and structures 25,108 25,108
Leasehold improvements 49,211 49,211
Parking meters 34,299 34,299
Furniture and fixtures 936 936
$ 277,284 $ 277,284
The Notes to Financial Statements are an integral part of this statement.
-89-
CITY OF FAYETTEVILLE, ARKANSAS
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1976 AND 1975
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting. The accrual basis of accounting is followed by all
funds other than funds which utilize the modified accrual basis of accounting.
The funds utilizing the modified accrual basis and modification in such
method from the accrual basis follow:
The General Fund, Police Pension and Relief Fund, Firemen's Pension
and Relief Fund, Municipal Judge Retirement Fund, and Revenue Sharing Fund
record revenue not susceptible to accrual as revenue when received. The
General Fund also records inventory type items and items normally recorded
as prepaid expenses as current expenditures when due.
The Sewer Assessment Fund and the 1970 Street Improvement Fund record
interest income from assessments receivable when it becomes due.
The 1971 Municipal Airport Revenue Loan Obligation Fund and the 1974
Airport Improvement Revenue Bond Fund record total interest to be paid over
the life of debt when issued.
Fixed assets. Property, plant and equipment are maintained in a separate
group of accounts for General Fund, Public Works Fund and Off Street Parking
Fund. In accordance with municipal accounting procedure, depreciation is
not accounted for on these assets. The streets and bridges constructed by
the Street Department have not been included in property, plant and equipment.
Such costs are charged currently to materials and supplies and contractual
services in that department of the Public Works Fund. Property, plant and
equipment items in the Sanitation Fund are carried on the balance sheet of
that fund and are being depreciated by the straight line method using the
following lives:
Asset
Buildings and
Machinery and
Vehicles
Furniture and
structures
equipment
fixtures
Life
10-25 years
10 years
5 years
10 years
Pension Plans. Policemen, firemen and the Municipal Judge are covered by
separate pension funds which are funded in accordance with state law. Financial
statements of these funds are presented. The City has a voluntary contributing
pension plan available for all other employees. This plan presently covers
approximately 53% of all eligible employees. The policy of the City is to
fund pension cost accrued. Contribution by the general government funds of
the City for the year ended December 31, 1976 were as follows:
-90-
CITY OF FAYETTEVILLE, ARKANSAS
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1976 AND 1975
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fund Amount
General Fund 4,894
Sanitation Fund 3,176
Public Works Fund 5,429
$13,499
Reserves for Retirement. The Police Pension and Relief Fund, Firemen's
Pension and Relief Fund, and Municipal Judge Retirement Fund are funded
in accordance with state law. No actuarial valuation has been made of
the reserves for retirement of these funds; therefore, the difference
between actual reserve balances and the reserves required on an actuarial
basis is not available.
-91-