city of clear lake schedule of findings independent ... · finding number 2016-001: the auditor...

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CITY OF CLEAR LAKE

SCHEDULE OF FINDINGS

INDEPENDENT AUDITOR’S REPORT

BASIC FINACIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION

FOR THE TWO YEARS ENDED DECEMBER 31, 2018

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CITY OF CLEAR LAKE

3

CITY OF CLEAR LAKE

CITY OFFICIALS

DECEMBER 31, 2018

Gary Eide Mayor

Carey Holt Alderman Ward I

Tim Hulscher Alderman Ward I

Kelli Bauman Alderwoman Ward II

John Keimig Alderman Ward II

Ramona Drake Alderwoman Ward III

Harry Mewherter Alderman Ward III

Mary E. Schmahl Finance Officer

Todd Boyd City Attorney

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CITY OF CLEAR LAKE

TABLE OF CONTENTS

Page

Independent Auditor’s Report on Internal Control Over Financial Reporting and on

Compliance and Other Matters Based on an Audit of Financial Statements

Performed in Accordance With Government Auditing Standards 6 – 7

Schedule of Prior Audit Findings 8

Schedule of Current Audit Findings 9

Independent Auditor’s Report 10 – 11

Basic Financial Statements

Government-wide Financial Statements:

As of December 31, 2018:

Statement of Net Position – Modified Cash Basis 13

For the Year Ended December 31, 2018

Statement of Activities – Modified Cash Basis 14 – 15


Statement of Activities – Modified Cash Basis 16 – 17

Fund Financial Statements:

Governmental Funds:


Balance Sheet – Modified Cash Basis 19


Statement of Revenues, Expenditures and Changes in Fund Balances – Modified

Cash Basis

20 – 21


Statement of Revenues, Expenditures and Changes in Fund Balances – Modified

Cash Basis

22 – 23

Proprietary Funds


Statement of Net Position – Modified Cash Basis 24


Statement of Revenues, Expenses and Changes in Fund Net Position – Modified

Cash Basis

25


Statement of Revenues, Expenses and Changes in Fund Net Position – Modified

Cash Basis

26

Notes to the Modified Cash Basis Financial Statements 27 – 39

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Page

Supplementary Information:


Budgetary Comparison – Budgetary Basis – General Fund 42 – 43

Budgetary Comparison – Budgetary Basis – Liquor, Lodging & Dining Gross

Receipts Tax Fund

44

Budgetary Comparison – Budgetary Basis – Health Care Fund 45

Budgetary Comparison – Budgetary Basis – Library Fines Fund 46


Budgetary Comparison – Budgetary Basis – General Fund 48 – 49

Budgetary Comparison – Budgetary Basis – Liquor, Lodging & Dining Gross

Receipts Tax Fund

50

Budgetary Comparison – Budgetary Basis – Health Care Fund 51

Budgetary Comparison – Budgetary Basis – Library Fines Fund 52

Budgetary Comparison – Budgetary Basis – Sales Tax Revenue Bond Debt Service

Fund

53

Notes to the Supplementary Information – Schedules of Budgetary Comparison 54

Schedule of the City’s Contributions 55

Schedule of the City’s Proportionate Share of Net Pension Liability (Asset) 56

Notes to the Supplementary Information – Pension Schedules 57

Schedule of Changes in Long-Term Debt 58

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GRANT AND WILLIAMS, INC. Certified Public Accountants

Rose M. Grant, CPA, MST, CGMA 312 S. Conklin Ave.

Aleene A. Williams, CPA Sioux Falls, SD 57103

(605) 274-2163

Fax: (605)-336-6783

www.grantandwilliams.com

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Governing Board

City of Clear Lake

Clear Lake, South Dakota

We have audited, in accordance with auditing standards generally accepted in the United States of America and the

standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller

General of the United States, the modified cash basis of accounting financial statements of the governmental

activities and the business-type activities, each major fund, of the City of Clear Lake, South Dakota (City), as of

December 31, 2018, and for each of the years in the biennial period then ended, and the related notes to the financial

statements, which collectively comprise the City’s basic financial statements and have issued our report thereon

dated June 10, 2020.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City’s internal control over

financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for

the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion

on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness

of the City’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not

designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies

and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as

described in the accompanying Schedule of Current Audit Findings, we did identify certain deficiencies in internal

control that we consider to be material weaknesses.

A deficiency in internal control exists when the design or operation of a control does not allow management or

employees, in the normal course of performing their assigned functions, to prevent, or detect and correct

misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal

control such that there is a reasonable possibility that a material misstatement of the Municipality’s financial

statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described

in the accompanying Schedule of Current Audit Findings as items 2018-001 and 2018-002 to be material

weaknesses.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City’s financial statements are free of material

misstatement, we performed tests of its compliance with certain provisions of laws, regulations, and contracts,

noncompliance with which could have a direct and material effect on the determination of financial statement

amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit,

and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of

noncompliance or other matters that are required to be reported under Government Auditing Standards.

http://www.grantandwilliams.com/

VCity’s Response to Findings . 1 __ is .- i .‘ _ _ _ - - . 1 ., ' A Z»The City’s response to the findings identified in our audit are described in the accompanying Schedule ofCurrentAudit Findings. The Municipality’s response was not subjected to the auditing procedures applied in the audit ofthe financial statements and, accordingly, we express no opinion on it.Purpose ofthis ReportThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and theresults of that testing, and not to provide an opinion on the effectiveness of the Municipality’s internal control oron compliance. This report is an integral part of an audit performed in accordance with Government AuditingStandards in considering the cntity’s internal control and compliance. Accordingly, thiseommunication is notsuitable for any other purpose. As required by South Dakota Codified Law 4-l 1-1 l, this report is a matter ofpublicrecord and its distribution is not limited. _. '

Grant and Williams, Inc.Certified Public AccountantsJune 10, 2020

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CITY OF CLEAR LAKE, SOUTH DAKOTA

SCHEDULE OF PRIOR AUDIT FINDINGS

PRIOR AUDIT FINDINGS:

Finding Number 2016-001:

The auditor assisted in the preparation of the financial statements and accompanying notes and disclosures to the

financial statements. The City does not have the staff to be able to complete the preparation of the financial

statements. This will be restated as a current audit finding number 2018-001.

Finding Number 2016-002:

The City did not file its audit and Data Collection Form (SF-SAC) with the Federal Audit Clearinghouse within the

9 months of the last audited as required by Title 2 U.S. Code of Federal Regulation Part 200, Uniform Administrative

Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). This was

corrected in 2017.

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CITY OF CLEAR LAKE, SOUTH DAKOTA

SCHEDULE OF CURRENT AUDIT FINDINGS

Internal Control-Related Findings – Material Weaknesses:

Finding # 2018-001: Financial Statement Preparation

Criteria – Proper controls over financial reporting include an adequate system for recording and processing

entries material to the financial statements, as well as the ability to prepare financial statements and

accompanying notes to the financial statements that are materially correct.

Condition – The City’s internal control system is designed to provide monthly financial statement. Due to time

constraints for the Finance Officer has not designed the annual financial statements in the accounting system.

The City has requested that the auditors draft the financial statements and the accompanying notes to the

financial statements. The City additionally requested that the auditors to prepare journal entries to convert the

financial statements from the accrual basis to the modified cash basis.

Cause – The City does not have an internal control system designed to provide for the preparation of the

financial statements being audited.

Effect – Inadequate controls over financial reporting of the City results in the likelihood that the City would not

be able to draft the financial statement and accompanying notes to the financial statements that are materially

correct without the assistance of the auditors.

Recommendation – While we recognize that this condition is not unusual in an organization of your size, it is

important that you be aware of this condition for financial reporting purposes. Management and the City

Council should continually be aware of the financial reporting of the City and changes in reporting

requirements.

Response – We are aware of the risk associated with not preparing our financial statements, but believe our

review of the financial statements to be adequate to reduce this risk.

Conclusion – Response accepted.

Finding # 2018-002: Segregation of Duties

Criteria – Proper controls over segregation of duties for revenues, expenditures and payroll resulting in

decreased reliability of reported financial data and increase potential for the loss of public assets.

Condition – Two financial officers processed all revenue transactions from beginning to end. The staff were

able to receive money, issue receipts, record receipts, post receipts in the accounting records, prepare bank

deposits, reconcile bank statements and prepare financial statements.

Cause – The City has a limited budget so the employees are cross-trained and perform their duties as necessary

to fill the administrative needs of the City.

Effect – In order to achieve proper internal control, it is necessary to have segregation of duties provided

between performance, review and record keeping of the tasks related to revenues, expenditures and payroll.

Lack of this segregation of duties could adversely affect the City’s ability to record, process, summarize and

report financial data consistent with management assertions.

Recommendation – We recommend that the City of Clear Lake’s officials be cognizant of this lack of

segregation of duties for revenues, expenditures and payroll and attempt to provide compensating controls

whenever and wherever possible and practical.

Response – The City Council will continue to monitor the Finance Office’s revenue process through monthly

council reports and the implementation of compensating internal controls, whenever, and wherever possible.

Conclusion – Response accepted.

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GRANT AND WILLIAMS, INC. Certified Public Accountants

Rose M. Grant, CPA, MST, CGMA 312 S. Conklin Ave.

Aleene A. Williams, CPA Sioux Falls, SD 57103

(605) 274-2163

Fax: (605)-336-6783

INDEPENDENT AUDITOR’S REPORT

To the City Council of

City of Clear Lake

Clear Lake, South Dakota

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities and the business type

activities, each major fund, of City of Clear Lake (City), Clear Lake, South Dakota, as of December 31, 2018 and

for each of the years in the biennial period then ended, and the related notes to the financial statements, which

collectively comprise the City’s basic financial statements listed in the table of contents.

Management’s Responsibility for the Financial Statements

The City’s management is responsible for the preparation and fair presentation of these financial statements in

accordance with the modified cash basis of accounting described in Note 1.c.; this includes determining that the

modified cash basis of accounting is an acceptable basis for the preparation of the financial statements in the

circumstances. Management is responsible for the design, implementation, and maintenance of internal controls

relevant to the preparation and fair presentation of financial statements that are free from material misstatements,

whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our

audit in accordance with auditing standards generally accepted in the United States of America and the standards

applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of

the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about

whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of

material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,

the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial

statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of

expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of

significant accounting estimates made by management, as well as evaluating the overall presentation of the financial

statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinions.

Basis for Disclaimer of Opinion

The financial statements of Housing and Redevelopment Commission of the City of Clear Lake, South Dakota have

not been audited, and we were not engaged to audit the Housing and Redevelopment Commission of the City of

Clear Lake, South Dakota financial statements as part of our audit of the City’s basic financial statements. Housing

and Redevelopment Commission of the City of Clear Lake, South Dakota’s financial activities are included in the

City’s basic financial statements as a discretely presented component unit.

Disclaimer ofOpinion 1 S .As discussed in the “Basis for Disclaimer of Opinion” paragraph, the Housing and Redevelopment Commission ofthe City ofClear Lake, South Dakota’s financial statements have not been audited, and we do not express an opinionof thefinancial statements of the aggregate discretely presented component unit for the City of Clear Lake, SouthDakota as of and for the year ended December 31, 2018.OpinionsIn our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position on a modified cash basis ofaccounting ofthe governmental activities, the business-type activities,and each major fund of the City of Clear Lake as of December 31, 2018, and the respective changes in financialposition thereof for each of the years in the biennial period then ended in accordance with the modified cash basisof accounting described in Note l.c. to the financial statements.Emphasis ofMatter 'As discussed in Note 8 to the financial statements, the City ofClear Lake adopted to change its basis of accountingfrom the accrual basis of accounting to the modified cash basis, which is a basis of accounting other than U.S.Generally Accepted Accounting Principles (USGAAP). As discussed in Note 8 to the financial statements, the Cityhas retroactively restated the previously reported Net Position in accordance with this statement. Our opinions arenot modified with respect to this matter.Other MattersSupplementary InformationOur audit was conducted for the purpose of forming opinions on the modified cash basis of accounting financialstatements that collectively comprise the City’s basic financial statements. The Budgetary Comparison Schedules— Budgetary Basis — General Fund, Liquor, Lodging & Dining Gross Receipts Tax, Health Care Fund, Library FinesFund, and Sales Tax Revenue Bond Debt Service Fund; Schedule ofthe City’s Contributions; Schedule ofthe City’sProportionate Share ofthe Net Pension Liability (Asset); and Schedule ofChanges in Long-Terrn Debt listed in thetable of contents are presented for purposes of additional analysis and are not a required part of the basic financialstatements. V -The supplementary information is the responsibility of management and was derived from and relates directly tothe underlying accounting and other records used to prepare the basic financial statements. Such information hasbeen subjected to the auditing procedures applied in the audit ofthe basic fmancial statements and certain additionalprocedures, including comparing and reconciling such information directly to the underlying accounting and otherrecords used to prepare the basic financial statements or to the basic financial statements themselves, and otheradditional procedures in accordance with auditing standards generally accepted in the United States ofAmerica. Inour opinion, the supplementary information is fairly stated in all material respects in relation to the basic financialstatements as a whole.Other Reporting Required by Government./iutliting StandardsIn accordance with Government Auditing Standards, we have also issued our report dated June 10, 2020 on ourconsideration of the City’s internal control over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts, and other matters. The purpose of that report is to describe the scope ofour testing of internal control over financial reporting and compliance and the results of that testing, and not toprovide an opinion on the internal control over financial reporting or on compliance. That report is an integral partof an audit performed in accordance with GovernmentAuditingStandards in considering the City’s internal controlover financial reporting and compliance. - '

£4’)/a/n/£'ia/wt’ lair]/QM4/n.§/1/t.<AGrant and Williams, Inc.Certified Public AccountantsSioux Falls, South DakotaJune 10, 2020

ll

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CITY OF CLEAR LAKE

GOVERNMENT-WIDE FINANCIAL STATEMENTS

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Governmental Business-Type Component

Activities Activities Total Unit

ASSETS:

Cash and Cash Equivalents 1,839,605.15$ 1,150,111.44$ 2,989,716.59$ 17,457.82$

Restricted Assets:

Cash and cash equivalents - 205,221.61 205,221.61 4,513.00

Investments 52,753.88 - 52,753.88 -

TOTAL ASSETS 1,892,359.03 1,355,333.05 3,247,692.08 21,970.82

NET POSITION:

Restricted for:

Capital Projects Purposes - 67,086.90 67,086.90 -

Debt Service Purposes - 44,213.96 44,213.96 -

Other Purposes 54,053.88 53,920.75 107,974.63 4,513.00

Unrestricted 1,838,305.15 1,190,111.44 3,028,416.59 17,457.82

TOTAL NET POSITION 1,892,359.03$ 1,355,333.05$ 3,247,692.08$ 21,970.82$

Primary Government

CITY OF CLEAR LAKE

STATEMENT OF NET POSITION - MODIFIED CASH BASIS

DECEMBER 31, 2018

The accompanying notes to the financial statements are an integral part of this statement.

14

Operating Capital

Charges for Grants and Grants and

Functions/Programs Expenses Services Contributions Contributions

Primary Government:

Governmental Activities:

General Government 148,794.98$ 4,620.61$ -$ 713.00$

Public Safety 106,627.34 1,282.96 - -

Public Works 390,416.21 110,101.07 29,288.94 424.48

Health and Welfare 288,286.59 - - -

Culture and Recreation 243,215.90 37,378.54 - -

Conservation and Development 19,413.03 - - -

Total Governmental Activities 1,196,754.05 153,383.18 29,288.94 1,137.48

Business-type Activities:

Water 288,349.07 278,452.50 - -

Sewer 369,560.52 305,314.76 - -

Total Business-Type Activities 657,909.59 583,767.26 - -

Total Primary Government 1,854,663.64$ 737,150.44$ 29,288.94$ 1,137.48$

Component Units:

Clear Lake Housing and

Redevelopment Commission 54,421.33 56,908.03 - -

General Revenues:

Taxes:

Property Taxes

Sales Taxes

State Shared Revenues

Unrestricted Investment Earnings

Miscellaneous Revenue

Total General Revenues and Transfers

Change in Net Position

Net Position-Beginning

Net Position-Ending

CITY OF CLEAR LAKE

STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS


Program Revenues

15

Governmental Business-Type

Activities Activities Total

(143,461.37)$ -$ (143,461.37)$ -$

(105,344.38) - (105,344.38) -

(250,601.72) - (250,601.72) -

(288,286.59) (288,286.59) -

(205,837.36) - (205,837.36) -

(19,413.03) - (19,413.03) -

(1,012,944.45) - (1,012,944.45) -

- (9,896.57) (9,896.57) -

- (64,245.76) (64,245.76) -

- (74,142.33) (74,142.33) -

(1,012,944.45) (74,142.33) (1,087,086.78) -

2,486.70

439,932.32 - 439,932.32 -

568,331.94 - 568,331.94 -

10,238.73 - 10,238.73 -

7,837.23 6,434.36 14,271.59 -

44,676.48 - 44,676.48 -

1,071,016.70 6,434.36 1,077,451.06 -

58,072.25 (67,707.97) (9,635.72) 2,486.70

1,834,286.78 1,423,041.02 3,257,327.80 19,484.12

1,892,359.03$ 1,355,333.05$ 3,247,692.08$ 21,970.82$

Net (Expense) Revenue and

Changes in Net Position

Primary Government

Component Unit -

Unaudited


16

Operating Capital

Charges for Grants and Grants and

Functions/Programs Expenses Services Contributions Contributions

Primary Government:

Governmental Activities:

General Government 168,567.12$ 3,528.55$ -$ -$

Public Safety 105,040.05 1,163.03 - -

Public Works 309,454.26 135,159.79 - -

Health and Welfare 295,780.98 - 763.00 -

Culture and Recreation 196,095.12 41,972.85 6,606.44 -

Conservation and Development 11,100.00 - - -

Interest on Long-Term Debt 75,877.70 - - -

Total Governmental Activities 1,161,915.23 181,824.22 7,369.44 -

Business-type Activities:

Water 265,205.26 256,825.64 - -

Sewer 564,457.00 282,513.28 86,058.84 -

Total Business-Type Activities 829,662.26 539,338.92 86,058.84 -

Total Primary Government 1,991,577.49$ 721,163.14$ 93,428.28$ -$

Component Units:

Clear Lake Housing and

Redevelopment Commission 47,190.60 53,089.66 - -

General Revenues:

Taxes:

Property Taxes

Sales Taxes

State Shared Revenues

Unrestricted Investment Earnings

Debt Issued

Miscellaneous Revenue

Total General Revenues and Transfers

Change in Net Position

Net Position-Beginning

Adjustments:

Change in accounting method from accrual to cash

Adjusted Net Position-Beginning

Net Position-Ending

Program Revenues

CITY OF CLEAR LAKE

STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS


17

Governmental Business-Type

Activities Activities Total

(165,038.57)$ -$ (165,038.57)$ -$

(103,877.02) - (103,877.02) -

(174,294.47) - (174,294.47) -

(295,017.98) (295,017.98) -

(147,515.83) - (147,515.83) -

(11,100.00) - (11,100.00) -

(75,877.70) (75,877.70) -

(972,721.57) - (972,721.57) -

- (8,379.62) (8,379.62) -

- (195,884.88) (195,884.88) -

- (204,264.50) (204,264.50) -

(972,721.57) (204,264.50) (1,176,986.07) -

- - - 5,899.06

439,307.62 - 439,307.62 -

605,223.37 - 605,223.37 -

9,560.57 - 9,560.57 -

5,107.73 5,839.59 10,947.32 -

- 164,030.00 164,030.00 -

32,556.53 - 32,556.53 -

1,091,755.82 169,869.59 1,261,625.41 -

119,034.25 (34,394.91) 84,639.34 5,899.06

2,816,551.00 3,271,665.00 6,088,216.00 (71,112.00)

(1,101,298.47) (1,814,229.07) (2,915,527.54) 84,697.06

1,715,252.53 1,457,435.93 3,172,688.46 13,585.06

1,834,286.78$ 1,423,041.02$ 3,257,327.80$ 19,484.12$

Net (Expense) Revenue and

Changes in Net Position

Primary Government

Component Unit -

Unaudited


18

CITY OF CLEAR LAKE

FUND FINANCIAL STATEMENTS

19

ASSETS:

Cash and Cash Equivalents 1,839,605.15$ -$ -$ 1,839,605.15$

Restricted Cash and Cash Equivalents 2,200.00 41,727.43 8,826.45 52,753.88

TOTAL ASSETS 1,841,805.15 41,727.43 8,826.45 1,892,359.03

FUND BALANCES:

Restricted 3,500.00 41,727.43 8,826.45 54,053.88

Unassigned 1,838,305.15 - - 1,838,305.15

TOTAL FUND BALANCES 1,841,805.15$ 41,727.43$ 8,826.45$ 1,892,359.03$

CITY OF CLEAR LAKE

BALANCE SHEET - MODIFIED CASH BASIS

GOVERNMENTAL FUNDS

DECEMBER 31, 2018

Liquor,

Lodging &

Dining Gross

Receipts TaxGeneral Fund

Library Fines

Fund

Total

Governmental

Fund


20

Revenues:

Taxes:

General Property Taxes 433,760.27$ -$ -$ -$ 433,760.27$

270,121.62 28,088.79 270,121.53 - 568,331.94

Gross Receipts Business Taxes 4,363.65 - - - 4,363.65

Amusement Taxes 240.00 - - - 240.00

1,568.40 - - - 1,568.40

Total Taxes 710,053.94 28,088.79 270,121.53 - 1,008,264.26

Licenses and Permits 4,620.61 - - - 4,620.61

Intergovernmental Revenue:

State Grants 713.00 - - - 713.00

State Shared Revenue:

Bank Franchise Tax 2,232.04 - - - 2,232.04

Motor Vehicle Commercial Prorate 3,893.68 - - - 3,893.68

Liquor Tax Reversion 8,006.69 - - - 8,006.69

Motor Vehicle Licenses (5%) 20,172.77 - - - 20,172.77

County Shared Revenue:

County Road Tax (25%) 2,484.37 - - - 2,484.37

22,888.42 - - - 22,888.42

County Wheel Tax 3,916.15 - - - 3,916.15

Total Intergovernmental Revenue 64,307.12 - - - 64,307.12

Charges for Goods and Services:

Sanitation 86,034.62 - - - 86,034.62

Culture and Recreation 21,685.90 - - - 21,685.90

107,720.52 - - - 107,720.52

Fines and Forfeits:

Court Fines and Costs 365.69 - - - 365.69

Library - - - 917.27 917.27

Total Fines and Forfeits 365.69 - - 917.27 1,282.96

Miscellaneous Revenue:

Investment Earnings 7,837.23 - - - 7,837.23

Rentals 15,692.64 - - - 15,692.64

Special Assessments 424.48 - - - 424.48

3,600.00 - - 6,121.34 9,721.34

8,110.00 - - - 8,110.00

Other 26,086.14 - - - 26,086.14

Total Miscellaneous Revenue 61,750.49 - - 6,121.34 67,871.83

Total Revenue 948,818.37$ 28,088.79$ 270,121.53$ 7,038.61$ 1,254,067.30$

Penalties and Interest on

Delinquent Taxes

Liquor Operating Agreement

Total Charges for Goods and

Services

Contributions and Donations

from Private Sources

CITY OF CLEAR LAKE


STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - MODIFIED CASH BASIS -

GOVERNMENTAL FUNDS

General Fund

Liquor,

Lodging &

Dining Gross

Receipts Tax

Health Care

Fund

Library Fines

Fund

Total

Governmental

Fund

General Sales and Use Taxes

County Highway and Bridge

Reserve Tax (25%)


21

Expenditures:

General Government:

Legislative 28,036.20$ - - - 28,036.20$

Executive 4,839.67 - - - 4,839.67

Financial Administration 80,766.94 - - - 80,766.94

Other 35,152.17 - - - 35,152.17

Total General Government 148,794.98 - - - 148,794.98

Public Safety:

Safety 70,222.57 - - - 70,222.57

Fire 36,395.29 - - - 36,395.29

Protective Inspection 9.48 - - - 9.48

Total Public Safety 106,627.34 - - - 106,627.34

Public Works:

Highways and Streets 297,466.23 - - - 297,466.23

Sanitation 87,525.98 - - - 87,525.98

Airport 5,224.00 - - - 5,224.00

Transit 200.00 - - - 200.00

Total Public Works 390,416.21 - - - 390,416.21

Health and Welfare:

Health 4,140.59 - - - 4,140.59

Ambulance 14,025.00 - - - 14,025.00

Hospitals - - 270,121.00 - 270,121.00

Total Health and Welfare 18,165.59 - 270,121.00 - 288,286.59

Culture and Recreation:

Recreation 64,929.72 - - - 64,929.72

Parks 92,714.75 - - - 92,714.75

Libraries 38,091.92 - - 6,389.21 44,481.13

Auditorium 24,442.56 14,147.74 - - 38,590.30

Historical Preservation 2,500.00 - - - 2,500.00

Total Culture and Recreation 222,678.95 14,147.74 - 6,389.21 243,215.90

Conservation and Development:

10,052.50 9,360.53 - - 19,413.03

10,052.50 9,360.53 - - 19,413.03

Total Expenditures 896,735.57 23,508.27 270,121.00 6,389.21 1,196,754.05

52,082.80 4,580.52 0.53 649.40 57,313.25

Other Financing Sources (Uses):

Sale of Municipal Property 759.00 - - - 759.00

Total Other Financing Sources (Uses) 759.00 - - - 759.00

Net Change in Fund Balance 52,841.80 4,580.52 0.53 649.40 58,072.25

Fund Balance - Beginning 1,788,963.35 37,146.91 (0.53) 8,177.05 1,834,286.78

FUND BALANCE- ENDING 1,841,805.15$ 41,727.43$ 0.00$ 8,826.45$ 1,892,359.03$

Total Conservation and

Economic Development and

Assistance (Industrial

General Fund

Liquor,

Lodging &

Dining Gross

Receipts Tax

Health Care

Fund

Library Fines

Fund

Total

Governmental

Fund

Excess of Revenues Over (Under)

Expenditures

22

Revenues:

Taxes:

General Property Taxes 432,482.52$ -$ -$ -$ -$ 432,482.52$

256,678.32 14,656.16 295,283.53 38,605.36 - 605,223.37

Gross Receipts Business Taxes 4,043.09 - - - - 4,043.09

Amusement Taxes 252.00 - - - - 252.00

2,530.01 - - - - 2,530.01

Total Taxes 695,985.94 14,656.16 295,283.53 38,605.36 - 1,044,530.99

Licenses and Permits 3,528.55 - - - - 3,528.55


State Grants 763.00 - - - - 763.00


Bank Franchise Tax 1,657.52 - - - - 1,657.52

1,486.60 - - - - 1,486.60

Liquor Tax Reversion 7,903.05 - - - - 7,903.05

Motor Vehicle Licenses (5%) 20,116.06 - - - - 20,116.06

21,784.48 - - - - 21,784.48


County Road Tax (25%) 2,484.37 - - - - 2,484.37

2,280.95 - - - - 2,280.95

County Wheel Tax 3,908.83 - - - - 3,908.83

Total Intergovernmental Revenue 62,384.86 - - - - 62,384.86


Sanitation 83,098.50 - - - - 83,098.50

Culture and Recreation 26,026.34 - - - - 26,026.34

109,124.84 - - - - 109,124.84

Fines and Forfeits:

Court Fines and Costs 469.00 - - - - 469.00

Library - - - - 694.03 694.03

Total Fines and Forfeits 469.00 - - - 694.03 1,163.03


Investment Earnings 5,081.82 - - 25.91 - 5,107.73

Rentals 15,946.51 - - - - 15,946.51

397.73 - - - 6,208.71 6,606.44

21,036.13 - - - - 21,036.13

Other 11,520.40 - - - - 11,520.40

Total Miscellaneous Revenue 53,982.59 - - 25.91 6,208.71 60,217.21

Total Revenue 925,475.78$ 14,656.16 295,283.53 38,631.27 6,902.74 1,280,949.48$

CITY OF CLEAR LAKE

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - MODIFIED CASH BASIS -

GOVERNMENTAL FUNDS


General Fund

Liquor,

Lodging &

Dining

Gross

Health

Care Fund

Library

Fines Fund

Total

Governmental

Fund

Sales Tax

Revenue

Bond Debt

Service

General Sales and Use Taxes

Local Government Highway

and Bridge Fund

County Highway and Bridge

Total Charges for Goods and

Services

Liquor Operating Agreement

Penalties and Interest on

Delinquent Taxes

Contributions and Donations

from Private Sources

Motor Vehicle Commercial

Prorate


23

Expenditures:

General Government:

Legislative 34,682.28$ - - - - 34,682.28$

Executive 5,207.62 - - - - 5,207.62

Elections 15.81 - - - - 15.81

Financial Administration 75,581.33 - - - - 75,581.33

Other 53,080.08 - - - - 53,080.08

Total General Government 168,567.12 - - - - 168,567.12

Public Safety:

Safety 69,527.30 - - - - 69,527.30

Fire 35,445.26 - - - - 35,445.26

Protective Inspection 67.49 - - - - 67.49

Total Public Safety 105,040.05 - - - - 105,040.05

Public Works:

Highways and Streets 218,726.67 - - - - 218,726.67

Sanitation 84,100.81 - - - - 84,100.81

Airport 6,426.78 - - - - 6,426.78

Transit 200.00 - - - - 200.00

Total Public Works 309,454.26 - - - - 309,454.26

Health and Welfare:

Health 4,278.34 - - - - 4,278.34

Ambulance 3,676.50 - - - - 3,676.50

Hospitals - - 287,826.14 - - 287,826.14

Total Health and Welfare 7,954.84 - 287,826.14 - - 295,780.98


Recreation 70,632.55 - - - - 70,632.55

Parks 44,452.63 - - - - 44,452.63

Libraries 34,392.20 - - - 9,639.20 44,031.40

Auditorium 26,697.11 7,781.43 - - - 34,478.54

Historical Preservation 2,500.00 - - - - 2,500.00

Total Culture and Recreation 178,674.49 7,781.43 - - 9,639.20 196,095.12

Economic Development 6,100.00 5,000.00 - - - 11,100.00

Debt Service - - - 75,877.70 - 75,877.70

Total Expenditures 775,790.76 12,781.43 287,826.14 75,877.70 9,639.20 1,161,915.23

149,685.02 1,874.73 7,457.39 (37,246.43) (2,736.46) 119,034.25


Transfers In (Out) 56,250.52 - - (56,250.52) - -

Total Other Financing Sources 56,250.52 - - (56,250.52) - -

Net Change in Fund Balance 205,935.54 1,874.73 7,457.39 (93,496.95) (2,736.46) 119,034.25

Fund Balance - Beginning 1,650,238.48 35,272.18 (7,457.92) 93,496.95 10,913.51 1,782,463.20

Adjustments:

Change of accounting methods (67,210.67) - - - - (67,210.67)

Adjusted Fund Balance - Beginning 1,583,027.81 35,272.18 (7,457.92) 93,496.95 10,913.51 1,715,252.53

FUND BALANCE- ENDING 1,788,963.35$ 37,146.91$ (0.53)$ -$ 8,177.05$ 1,834,286.78$

Sales Tax

Revenue

Bond Debt

Service

Library

Fines Fund

Total

Governmental

FundGeneral Fund

Liquor,

Lodging &

Dining

Gross

Health

Care Fund

Excess of Revenues Over (Under)

Expenditures

24

Water Sewer

Fund Fund Totals

ASSETS:

Current Assets:

Cash and Cash Equivalents 392,748.12$ 757,363.32$ 1,150,111.44$

Restricted Cash and Cash Equivalents 158,356.85 46,864.76 205,221.61

Total Current Assets 551,104.97 804,228.08 1,355,333.05

TOTAL ASSETS 551,104.97$ 804,228.08$ 1,355,333.05$

NET POSITION:

Restricted for:

Revenue Bond Debt Service 27,349.20$ 16,864.76$ 44,213.96$

Equipment Repair and/or Replacement 37,086.90 30,000.00 67,086.90

Other Purposes Customer Deposits 53,920.75 - 53,920.75

Unrestricted 432,748.12 757,363.32 1,190,111.44

TOTAL NET POSITION 551,104.97$ 804,228.08$ 1,355,333.05$

CITY OF CLEAR LAKE

STATEMENT OF NET POSITION - MODIFIED CASH BASIS

DECEMBER 31, 2018

PROPRIETARY FUNDS

Enterprise Funds


25

Water Sewer

Fund Fund Totals

Operating Revenue:

Charges for Goods and Services 276,749.32$ 286,698.17$ 563,447.49$

Miscellaneous 1,703.18 18,616.59 20,319.77

Total Operating Revenue 278,452.50 305,314.76 583,767.26

Operating Expenses:

Personal Services 58,519.07 54,735.23 113,254.30

Other Current Expense 50,611.54 34,321.04 84,932.58

Materials 86,686.30 - 86,686.30

Capital Assets 65,182.96 160,355.49 225,538.45

Total Operating Expenses 260,999.87 249,411.76 510,411.63

Operating Income (Loss) 17,452.63 55,903.00 73,355.63

Nonoperating Revenue (Expense):

Investment Earnings 2,808.39 3,625.97 6,434.36

Debt Service (Principal) (19,039.16) (71,557.36) (90,596.52)

Interest Expense (8,310.04) (48,591.40) (56,901.44)

Total Nonoperating Revenue (Expense) (24,540.81) (116,522.79) (141,063.60)

Change in Net Position (7,088.18) (60,619.79) (67,707.97)

Net Position - Beginning 558,193.15 864,847.87 1,423,041.02

NET POSITION - ENDING 551,104.97$ 804,228.08$ 1,355,333.05$

CITY OF CLEAR LAKE


STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION - MODIFIED

CASH BASIS - PROPRIETARY FUNDS

Enterprise Funds


26

Water Sewer

Fund Fund Totals

Operating Revenue:

Charges for Goods and Services 255,121.56$ 282,470.16$ 537,591.72$

Miscellaneous 1,704.08 43.12 1,747.20

Total Operating Revenue 256,825.64 282,513.28 539,338.92

Operating Expenses:

Personal Services 61,542.34 48,528.32 110,070.66

Other Current Expense 54,392.13 31,559.07 85,951.20

Materials 82,756.05 - 82,756.05

Capital Assets 32,328.24 364,220.85 396,549.09

Total Operating Expenses 231,018.76 444,308.24 675,327.00

Operating Income (Loss) 25,806.88 (161,794.96) (135,988.08)

Nonoperating Revenue (Expense):

Operating Grants - 86,058.84 86,058.84

Investment Earnings 2,790.68 3,048.91 5,839.59

Debt Service (Principal) (22,837.36) (66,605.84) (89,443.20)

Interest Expense (11,349.14) (53,542.92) (64,892.06)

Long-Term Debt Issued - 164,030.00 164,030.00

Total Nonoperating Revenue (Expense) (31,395.82) 132,988.99 101,593.17

Change in Net Position (5,588.94) (28,805.97) (34,394.91)

Net Position - Beginning 1,026,180.00 2,245,485.00 3,271,665.00

Adjustments:

Change of accounting methods (462,397.91) (1,351,831.16) (1,814,229.07)

Adjusted Net Position - Beginning 563,782.09 893,653.84 1,457,435.93

NET POSITION - ENDING 558,193.15$ 864,847.87$ 1,423,041.02$

CITY OF CLEAR LAKE

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION -

MODIFIED CASH BASIS - PROPRIETARY FUNDS


Enterprise Funds


27

CITY OF CLEAR LAKE

NOTES TO THE MODIFIED CASH BASIS FINANCIAL STATEMENTS

1. Summary of Significant Accounting Policies

As discussed further in Note 1.c., these financial statements are presented on a modified cash basis of

accounting. The modified cash basis of accounting differs from accounting principles generally accepted in the

United States of America (GAAP). Generally accepted accounting principles include all relevant Governmental

Accounting Standards Board (GASB) pronouncements.

a. Financial Reporting Entity:

The reporting entity of the City of Clear Lake (City), consists of the primary government (which includes

all of the funds, organizations, institutions, agencies, departments, and offices that make up the legal entity,

plus those funds for which the primary government has a fiduciary responsibility, even though those

fiduciary funds may represent organizations that do not meet the criteria for inclusion in the financial

reporting entity); those organizations for which the primary government is financially accountable; and

other organizations for which the nature and significance of their relationship with the primary government

are such that their exclusion would cause the financial reporting entity’s financial statements to be

misleading or incomplete.

Component units are legally separate organizations for which the elected officials of the primary

government are financially accountable. The City is financially accountable if its Governing Board

appoints a voting majority of another organization’s governing body and it has the ability to impose its will

on that organization, or there is a potential for that organization to provide specific financial benefits to, or

impose specific financial burdens on, the City (primary government). The City may also be financially

accountable for another organization if that organization is fiscally dependent on the City.

The Housing and Redevelopment Commission of the City of Clear Lake, South Dakota (Commission) is a

proprietary fund-type, discretely-presented component unit. The five members of the Commission are

appointed by the Mayor, with the approval of the Governing Board, for five-year, staggered terms. The

Commission elects its own chairperson and recruits and employs its own management personnel and other

workers. The Governing Board, though, retains the statutory authority to approve or deny or otherwise

modify the Commission’s plans to construct low-income housing units, or to issue debt, which gives the

Governing Board the ability to impose its will on the Commission. Separately issued financial statements

of the Housing and Redevelopment Commission may be obtained from the Clear Lake City Hall.

b. Basis of Presentation:


The Statement of Net Position and Statement of Activities display information about the reporting entity as

a whole. They include all funds of the reporting entity except for fiduciary funds. The statements

distinguish between governmental, business-type activities and discretely presented component units.

Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-

exchange revenues. Business-type activities are financed in whole or in part by fees charged to external

parties for goods or services. Discretely presented component units are legally separate organizations that

meet certain criteria, as described in note 1.a., above, and may be classified as either governmental or

business-type activities. See the discussion of individual component units in Note 1.a., above.

The Statement of Activities presents a comparison between direct expenses and program revenues for each

segment of the business-type activities of the City and for each function of the City’s governmental

activities. Direct expenses are those that are specifically associated with a program or function and,

therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by

recipients of goods and services offered by the programs and (b) grants and contributions that are restricted

to meeting the operational or capital requirements of a particular program. Revenues that are not classified

as program revenues, including all taxes, are presented as general revenues.

28


Fund financial statements of the reporting entity are organized into funds, each of which is considered to

be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing

accounts that constitute its assets, liabilities, fund equity, revenues, and expenditures /expenses. Funds are

organized into two major categories: governmental and proprietary. An emphasis is placed on major funds

within the governmental and proprietary categories. A fund is considered major if it is the primary operating

fund of the City or it meets the following criteria:

1. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental or enterprise

fund are at least 10 percent of the corresponding total for all funds of that category or type, and

2. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental or enterprise

fund are at least 5 percent of the corresponding total for all governmental and enterprise funds

combined, or

3. Management has elected to classify one or more governmental or enterprise funds as major for

consistency in reporting from year to year, or because of public interest in the fund’s operations.

The funds of the City financial reporting entity are described below:

Governmental Funds:

General Fund – The General Fund is the general operating fund of the City. It is used to account for all

financial resources except those required to be accounted for in another fund. The General Fund is always

considered to be a major fund.

Special Revenue Funds – Special revenue funds are used to account for the proceeds of specific revenue

sources (other than trusts for individuals, private organizations, or other governments or for major capital

projects) that are legally restricted to expenditures for specified purposes.

Liquor, Lodging and Dining Gross Receipts Tax Fund – to account for the collection of a one

percent tax on the gross receipts of lodgings, alcoholic beverages, prepared food and admissions

which tax shall be used for the purpose of land acquisition, architectural fees, construction costs,

payments for civic center, auditorium or athletic facility buildings, including the maintenance,

staffing, and operations of such facilities and the promotion and advertising of the city (SDCL 10-

52A-2). This fund may be established at the direction of the governing body through local

ordinance. This is a major fund.

Health Care Fund – to allocate sales tax receipts for the support of health care activities. This is a

major fund.

Library Fines Fund – A fund allowed by SDCL 14-2-42 to account for library related fines, similar

charges and donations to be used for library activities. The library fines is a major fund.

Debt Service Funds – Debt service funds are used to account for the accumulation of resources for, and

the payment of, general long-term debt principal, interest, and related costs.

Sales Tax Revenue Bond Debt Service Fund – to account for sales taxes which may be used only

for the payment of the debt principal, interest, and related costs for the construction of a community

center facility. This is a major fund in 2017 and was closed in 2018.

Proprietary Funds:

Enterprise Funds – Enterprise funds may be used to report any activity for which a fee is charged to external

users for goods or services. Activities are required to be reported as enterprise funds if any one of the

following criteria is met. Governments should apply each of these criteria in the context of the activity's

principal revenue sources.

a. The activity is financed with debt that is secured solely by a pledge of the net revenues from fees

and charges of the activity. Debt that is secured by a pledge of net revenues from fees and charges and

the full faith and credit of a related primary government or component unit—even if that government

is not expected to make any payments—is not payable solely from fees and charges of the activity.

(Some debt may be secured, in part, by a portion of its own proceeds but should be considered as

payable "solely" from the revenues of the activity.)

29

b. Laws or regulations require that the activity's costs of providing services, including capital costs

(such as depreciation or debt service), be recovered with fees and charges, rather than with taxes or

similar revenues.

c. The pricing policies of the activity establish fees and charges designed to recover its costs,

including capital costs (such as depreciation or debt service).

Water Fund – financed primarily by user charges this fund accounts for the construction and

operation of the municipal waterworks system and related facilities. (SDCL 9-47-1) This is a

major fund.

Sewer Fund – financed primarily by user charges this fund accounts for the construction and

operation of the municipal sanitary sewer system and related facilities. (SDCL 9-48-2) This

is a major fund.

c. Measurement Focus and Basis of Accounting:

Measurement focus is a term used to describe “how” transactions are recorded within the various financial

statements. Basis of accounting refers to “when” revenues and expenditures or expenses are recognized in

the accounts and reported in the financial statements, regardless of the measurement focus.

The City’s basis of accounting is the modified cash basis, which is a basis of accounting other than U.S.

Generally Accepted Accounting Principles (USGAAP). Under USGAAP, transactions are recorded in the

accounts when revenues are earned and liabilities are incurred. Under the modified cash basis, transactions

are recorded when cash is received or disbursed.

Measurement Focus:


In the government-wide Statement of Net Position and Statement of Activities, both governmental and

business-type activities are presented using the economic resources measurement focus, applied within the

limitations of the modified cash basis of accounting as defined below.


In the fund financial statements, the “current financial resources” measurement focus or the “economic

resources” measurement focus is used, applied within the limitations of the modified cash basis of

accounting.

Basis of Accounting:

In the government-wide Statement of Net Position and Statement of Activities and the fund financial

statements, governmental, business-type, and component unit activities are presented using a modified cash

basis of accounting.

The modified cash basis of accounting involves the measurement of cash and cash equivalents and changes

in cash and cash equivalents resulting from cash receipt and disbursement transactions. Under the modified

cash basis of accounting, the statement of financial position reports only cash and cash equivalents (those

investments with terms to maturity of 90 days (three months) or less at the date of acquisition). Under the

modified cash basis of accounting, transactions are recorded in the accounts when cash and/or cash

equivalents are received or disbursed and assets and liabilities are recognized to the extent that cash has

been received or disbursed. The acceptable modification to the cash basis of accounting implemented by

the City in these financial statements is:

Recording long-term investments in marketable securities (those with maturities more than 90-days

(three months) from the date of acquisition) acquired with cash assets at cost.

Acceptable modifications to the cash basis of accounting implemented by the City in these financial

statements is the recording long-term investments in marketable securities (those with maturities more than

90-days (three months) from the date of acquisition) acquired with cash assets at cost.

As a result of the use of this modified cash basis of accounting, certain assets and their related revenues

(such as accounts receivable and revenue for billed or provided services not yet collected) and certain

liabilities and their related expenses (such as accounts payable and expenses for goods or services received

but not yet paid, and accrued expenses and liabilities) are not recorded in these financial statements.

30

If the City applied USGAAP, the fund financial statements for governmental funds would use the modified

accrual basis of accounting, while the fund financial statements for proprietary fund types and fiduciary

fund types would use the accrual basis of accounting. All government-wide financial statements would be

presented on the accrual basis of accounting.

d. Deposits and Investments:

For the purpose of financial reporting, “cash and cash equivalents” includes all demand and savings

accounts and certificates of deposit or short-term investments with a term to maturity at date of acquisition

of three months or less. Investments in open-end mutual fund shares, or similar investments in external

investment pools, are also considered to be cash equivalents.

Investments classified in the financial statements consist entirely of certificates of deposit whose term to

maturity at date of acquisition exceeds three months, and/or those types of investment authorized by South

Dakota Codified Laws (SDCL) 4-5-6. Under the modified cash basis of accounting, investments are carried

at cost.

e. Capital Assets:

As discussed in Note 1.c. above, the government-wide Statement of Net Position and Statement of

Activities and the fund financial statements, governmental, business-type, and component unit activities

are presented using a modified cash basis of accounting. The City has not elected to modify their cash basis

presentation by recording capital assets arising from cash transactions and depreciating those assets where

appropriate so any capital assets owned by the City and the related depreciation are not reported on the

financial statements of the City.

f. Long-Term Liabilities:

Long-term liabilities include, but are not limited to, General Obligation Bonds, Revenue Bonds, Certificates

of Participation, Financing (Capital Acquisition) Leases, and Compensated Absences.

As discussed in Note 1.c. above the government-wide Statement of Net Position and Statement of Activities

and the fund financial statements, governmental, business-type, and component unit activities are presented

using a modified cash basis of accounting. The City has not elected to modify their cash basis presentation

by recording long-term debt arising from cash transactions so any outstanding indebtedness is not reported

on the financial statements of the City. The City does report the principal and interest payments on long-

term debt as Debt Service expenditures on the Statement of Revenues, Expenditures and Changes in Fund

Balances. On the Statement of Activities the principal portion of these Debt Service payments is reported

within the appropriate expense function while the interest portion is reported as Interest on Long-Term

Debt.

The City has presented as Supplementary Information a Schedule of Changes in Long-Term Debt along

with related notes that include details of any outstanding Long-Term Debt.

g. Program Revenues:

Program revenues derive directly from the program itself or from parties other than the City’s taxpayers or

citizenry, as a whole. Program revenues are classified into three categories, as follows:

1. Charges for services – These arise from charges to customers, applicants, or others who purchase,

use, or directly benefit from the goods, services, or privileges provided, or are otherwise directly

affected by the services.

2. Program-specific operating grants and contributions – These arise from mandatory and voluntary

non-exchange transactions with other governments, organizations, or individuals that are restricted

for use in a particular program.

3. Program-specific capital grants and contributions – These arise from mandatory and voluntary

non-exchange transactions with other governments, organizations, or individuals that are restricted

for the acquisition of capital assets for use in a particular program.

31

h. Proprietary Funds Revenue and Expense Classifications:

In the proprietary fund’s Statement of Revenues, Expenses and Changes in Net Position, revenues and

expenses are classified as operating or non-operating revenues and expenses. Operating revenues and

expenses directly relate to the purpose of the fund.

i. Cash and Cash Equivalents:

The City pools the cash resources of its funds for cash management purposes. The proprietary funds

essentially have access to the entire amount of its/their cash resources on demand. Accordingly, each

proprietary fund’s equity in the cash management pool is considered to be cash and cash equivalents for

the purpose of the Statement of Cash Flows.

j. Equity Classifications:


Equity is classified as Net Position and is displayed in two components:

1. Restricted Net Position – Consists of net position with constraints placed on their use either by (a)

external groups such as creditors, grantors, contributors, or laws and regulations of other

governments; or (b) law through constitutional provisions or enabling legislation.

2. Unrestricted Net Position – All other net position that do not meet the definition of Restricted Net

Position.


Governmental fund equity is classified as fund balance, and may distinguish between “Nonspendable”,

“Restricted”, “Committed”, “Assigned”, and “Unassigned” components. Proprietary fund equity is

classified the same as in the government-wide financial statements.

k. Application of Net Position:

It is the City’s policy to first use restricted net position, prior to the use of unrestricted net position, when

an expense is incurred for purposes for which both restricted and unrestricted net position are available.

l. Fund Balance Classification Policies and Procedures:

In accordance with Government Accounting Standards Board (GASB) No. 54, Fund Balance Reporting

and Governmental Fund Type Definitions, the City classifies governmental fund balances as follows:

• Nonspendable – includes fund balance amounts that cannot be spent either because it is not in

spendable form or because of legal or contractual constraints.

• Restricted – includes fund balance amounts that are constrained for specific purposes which are

externally imposed by providers, such as creditors or amounts constrained due to constitutional

provisions or enabling legislation.

• Committed – includes fund balance amounts that are constrained for specific purposes that are

internally imposed by the government through formal action of the highest level of decision-making

authority and does not lapse at year-end.

• Assigned – includes fund balance amounts that are intended to be used for specific purposes that

are neither considered restricted or committed. Fund Balance may be assigned by the City Council.

• Unassigned – includes positive fund balance within the General Fund which has not been classified

within the above-mentioned categories and negative fund balances in other governmental funds.

The City Governing Board restricted and committed the following fund balance types by taking the

following action:

Fund Balance Type - Restricted Action

Amount

12/31/18

Amount

12/31/17

Liquor, Lodging & Dining Gross Receipts Tax Fund State Statute 41,727.43 37,146.91

Library Fines Fund State Statute 8,826.45 8,177.05

Sales Tax Revenue Bond Debt Service Fund Covenant - -

32

Fund Balance Type - Committed Action

Amount

12/31/18

Amount

12/31/17

Health Care Fund Ordinance 0.00 (0.53)

The City uses restricted/committed amounts first when both restricted and unrestricted fund balance is

available unless there are legal documents/contracts that prohibit doing this, such as a grant agreement

requiring dollar for dollar spending. Additionally, the Government would first use committed, then

assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made.

The City does not have a formal minimum fund balance policy.

The purpose of each major special revenue fund and revenue source is listed below:

Major Special Revenue Fund Revenue Source

Liquor, Lodging and Dining Gross Receipts Tax Fund Sales Tax

Health Care Sales Tax

Library Fines Fines and donations

Sales Tax Revenue Bond – Debt Service (ended in 2017) Sales Tax

2. Violations of Finance-Related Legal and Contractual Provisions

The City is prohibited by statute from spending in excess of appropriated amounts at the department level. The

Library Fines Fund went over its budget by $5,639.20 in 2017 and $2,389.21 in 2018.

The City expects to adopt supplemental appropriations to cover the expenditures that will exceed their original

appropriation.

3. Deposits and Investments Credit Risk, Concentrations of Credit Risk And Interest Rate Risk

The City follows the practice of aggregating the cash assets of various funds to maximize cash management

efficiency and returns. Various restrictions on deposits and investments are imposed by statutes. These

restrictions are summarized below:

Deposits – The City’s cash deposits are made in qualified public depositories as defined by SDCL 4-6A-1, 9-

22-6, 9-22-6.1 and 9-22-6.2, and may be in the form of demand or time deposits. Qualified depositories are

required by SDCL 4-6A-3 to maintain at all times, segregated from their other assets, eligible collateral having

a value equal to at least 100 percent of the public deposit accounts which exceed deposit insurance such as the

FDIC and NCUA. In lieu of pledging eligible securities, a qualified public depository may furnish irrevocable

standby letters of credit issued by federal home loan banks accompanied by written evidence of that bank’s

public debt rating which may not be less than “AA” or a qualified public depository may furnish a corporate

surety bond of a corporation authorized to do business in South Dakota.

Investments – In general, SDCL 4-5-6 permits City funds to be invested only in (a) securities of the United

States and securities guaranteed by the United States Government either directly or indirectly; or (b) repurchase

agreements fully collateralized by securities described in (a) above; or in shares of an open-end, no-load fund

administered by an investment company whose investments are in securities described in (a) above and

repurchase agreements described in (b) above. Also, SDCL 4-5-9 requires investments to be in the physical

custody of the political subdivision or may be deposited in a safekeeping account with any bank or trust

company designated by the political subdivision as its fiscal agent.

As of December 31, 2018, the City did not have any investments.

Credit Risk – State law limits eligible investments for the City, as discussed above. The City has no investment

policy that would further limit its investment choices.

Custodial Credit Risk – Deposits – The risk that, in the event of a depository failure, the City’s deposits may

not be returned to it. The City does not have a deposit policy for custodial credit risk. As of December 31,

2018 and 2017 the City’s deposits in financial institutions were not exposed to any custodial credit risk.

33

Custodial Credit Risk – Investments – The risk that, in the event of the counterparty to a transaction, the City

will not be able to recover the value of investment or collateral securities that are in the possession of an outside

party. As of December 31, 2018 and 2017 the City had no investments.

Concentration of Credit Risk – The City places no limit on the amount that may be invested in any one issuer.

Interest Rate Risk – The City does not have a formal investment policy that limits investment maturities as a

means of managing its exposure to fair value losses arising from increasing interest rates.

Assignment of Investment Income – State law allows income from deposits and investments to be credited to

either the General Fund or the fund making the investment. The City’s policy is to credit all income from

deposits and investments to the fund making the deposit.

4. Property Taxes

Property taxes are levied on or before October 1, of the year preceding the start of the fiscal year. They attach

as an enforceable lien on property, and become due and payable as of January 1, the first day of the fiscal year.

Taxes are payable in two installments on or before June 10 and October 31 of the fiscal year.

The City is permitted by several state statutes to levy varying amounts of taxes per $1,000 of taxable valuation

on taxable real property in the City.

5. Restricted Net Position

Restricted Net Position for the year ended December 31, 2018 was as follows:

Other Purposes:

Customer Deposits 3,500.00$

Gross Receipts Tax 41,727.43

Library Fines 8,826.45

Total Restricted Net Position 54,053.88$

These balances are restricted due to statutory requirements.

6. Interfund Transfers

Interfund transfers for the year ended December 31, 2018 and 2017 were as follows:

12/31/2018 12/31/2017

Transfers From: Transfer to:

Sales Tax Revenue Bond Debt Service General Fund -$ 56,250.52$

The City paid the final bond payment in 2017. The remaining balance was transferred to the General Fund and

closed the Sales Tax Revenue Bond Debt Service Fund.

7. Tax Abatements

Both the City of Clear Lake and Deuel County have in place a discretionary formula to spur development within

the City and County. The rate of taxation of evaluation of new Non-Residential, Ag, Industrial and Commercial

structures or additions in the County and addition to the County’s property the City includes residential

structures. Under the limits defined in SDCL 10-6-35.22, 10-6-35.24 and 10-6-35.25 shall be set at (A) for the

first year – 20% of the full and true value thereof; (B) for the second year – 40% of the full and true value

thereof; (C) for the third year - 60% of the full and true value thereof; (D) for the fourth year – 80% of the full

and true value thereof; (E) for the fifth year – 100% of the full and true value thereof. The County’s Director

of Equalization (DOE) applies this discretionary formula to all properties that qualify, but only after the

individual or entity has already built the structure or addition. These discretionary programs do not meet the

definition of a tax abatement under GASB 77, since it more closely resembles a broad tax exemptions or

deductions rather than individual tax abatement agreements

8. Prior Period Adjustments

The City adopted to change its basis of accounting from the accrual basis of accounting to the modified cash

basis, which is a basis of accounting other than U.S. Generally Accepted Accounting Principles (USGAAP).

34

Under USGAAP, transactions are recorded in the accounts when revenues are earned and liabilities are incurred.

Under the modified cash basis, transactions are recorded when cash is received or disbursed. As a result,

beginning fund balance/net position has been restated to reflect the impact of the change to the prior period as

of January 1, 2017 as follows for pages 23 and 26:

General Fund Water Fund Sewer Fund

Fund Balance/Net Position

December 31, 2016, as previously

reported 1,650,238.48 1,026,180.00 2,245,485.00

Delinquent Taxes (17,675.41) - -

Accounts Receivable (10,206.50) (19,929.00) (108,600.00)

HRC Note Receivable (15,071.00) - -

Inventory (9,054.21) (10,993.65) (3,477.31)

Public Assurance Dep (15,203.55) (2,567.00) (1,974.49)

Deposits - 49,905.00 -

Capital Assets (798,518.89) (4,019,160.63)

Accounts Payable 10,230.00 347,649.00

Loans 311,710.00 2,440,389.00

Accrued Leave Payable 5,823.63 979.27

Pension Deferred Outflows (22,731.00) (21,540.00)

Pension Deferred Inflows 8,108.00 7,683.00

Net Pension Liability 6,565.00 6,221.00

Net Change in Fund Balance/Net

Position (67,210.67) (462,397.91) (1,351,831.16)

Fund Balance/Net Position January

1,2017, as restated 1,583,027.81 563,782.09 893,653.84

For page 17 Statement of Activities Change in Accounting Method

Governmental

Activities

Business-Type

Activities

Fund Balance/Net Position

December 31, 2016, as previously

reported 2,816,551.00$ 3,271,665.00$

Delinquent Taxes (17,675.41) -

Accounts Receivable (44,843.00) (128,529.00)

HRC Note Receivable (15,071.00) -

Inventory (9,054.21) (14,470.96)

Public Assurance Dep (15,203.55) (4,541.49)

Deposits 2,200.00 49,905.00

Capital Assets (1,072,304.30) (4,817,679.52)

Accounts Payable 21,869.00 357,879.00

Loans 72,485.00 2,752,099.00

Accrued Leave Payable 4,141.00 6,802.90

Pension Deferred Outflows (78,534.00) (44,271.00)

Pension Deferred Inflows 28,012.00 15,791.00

Net Pension Liability 22,680.00 12,786.00

Net Change in Fund Balance/Net

Position (1,101,298.47) (1,814,229.07)

Fund Balance/Net Position January

1,2017, as restated 1,715,252.53$ 1,457,435.93$

35

9. Pension Plan

Plan Information:

All employees, working more than 20 hours per week during the year, participate in the South Dakota

Retirement System (SDRS), a cost sharing, multiple employer hybrid defined benefit pension plan administered

by SDRS to provide retirement benefits for employees of the State of South Dakota and its political

subdivisions. The SDRS provides retirement, disability, and survivor benefits. The right to receive retirement

benefits vests after three years of credited service. Authority for establishing, administering and amending plan

provisions are found in SDCL 3-12. The SDRS issues a publicly available financial report that includes

financial statements and required supplementary information. That report may be obtained at

http://sdrs.sd.gov/publications.aspx or by writing to the SDRS, P.O. Box 1098, Pierre, SD 57501-1098 or by

calling (605) 773-3731.

Benefits Provided:

SDRS has three different classes of employees, Class A general members, Class B public safety and judicial

members, and Class C Cement Plant Retirement Fund members.

Members that were hired before July 1, 2017, are Foundation members. Class A Foundation members and

Class B Foundation members who retire after age 65 with three years of contributory service are entitled to an

unreduced annual retirement benefit. An unreduced annual retirement benefit is also available after age 55 for

Class A Foundation members where the sum of age and credited service is equal to or greater than 85 or after

age 55 for Class B Foundation judicial members where the sum of age and credited service is equal to or greater

than 80. Class B Foundation public safety members can retire with an unreduced annual retirement benefit

after age 55 with three years of contributory service. An unreduced annual retirement benefit is also available

after age 45 for Class B Foundation public safety members where the sum of age and credited service is equal

to or greater than 75. All Foundation retirements that do not meet the above criteria may be payable at a reduced

level.

Members that were hired on/after July 1, 2017, are Generational members. Class A Generational members and

Class B Generational judicial members who retire after age 67 with three years of contributory service are

entitled to an unreduced annual retirement benefit. Class B Generational public safety members can retire with

an unreduced annual retirement benefit after age 57 with three years of contributory service. At retirement,

married Generational members may elect a single-life benefit, a 60 percent joint and survivor benefit, or a 100

percent joint and survivor benefit. All Generational retirement benefits that do not meet the above criteria may

be payable at a reduced level. Generational members will also have a variable retirement account (VRA)

established, in which they will receive up to 1.5 percent of compensation funded by part of the employer

contribution. VRAs will receive investment earnings based on investment returns.

Legislation enacted in 2017 established the current COLA process. At each valuation date:

• Baseline actuarial accrued liabilities will be calculated assuming the COLA is equal to long-term

inflation assumption of 2.25%.

• If the fair value of assets is greater or equal to the baseline actuarial accrued liabilities, the COLA

will be:

o The increase in the 3rd quarter CPI-W, no less than 0.5% and no greater than 3.5%.

• If the fair value of assets is less than the baseline actuarial accrued liabilities, the COLA will be:

o The increase in the 3rd quarter CPI-W, no less than 0.5% and no greater than a restricted

maximum such that, that if the restricted maximum is assumed for future COLAs, the fair

value of assets will be greater or equal to the accrued liabilities.

All benefits except those depending on the Member’s Accumulated Contributions are annually increased by the

Cost-of-Living Adjustment.

Contributions:

Per SDCL 3-12, contribution requirements of the active employees and the participating employers are

established and may be amended by the SDRS Board. Covered employees are required by state statute to

contribute the following percentages of their salary to the plan; Class A Members, 6.0% of salary; Class B

http://sdrs.sd.gov/publications.aspx

36

Judicial Members, 9.0% of salary; and Class B Public Safety Members, 8.0% of salary. State statute also

requires the employer to contribute an amount equal to the employee’s contribution. The City’s share of

contributions to the SDRS for the calendar years ended December 31, 2018, 2017, and 2016, equal to the

required contributions each year, were as follows:

Year Amount

2018 13,491.35$

2017 12,411.20$

2016 11,929.51$

Pension Assets, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources

to Pensions:

At June 30, 2018, SDRS is 100.02% funded and accordingly has a net pension asset. The proportionate share

of the components of the net pension asset of South Dakota Retirement System, for the City as of this

measurement period ending June 30, 2018 and reported by the City as of December 31, 2018 are as follows:

Proportionate share of pension liability 1,272,529.15$

1,272,771.75$

Proportionate share of net pension (asset) (242.60)$

Less proportionate share of net pension

restricted for pension benefits

At December 31, 2018, the City reported a liability (asset) of $ (242.60) for its proportionate share of the net

pension liability (asset). The net pension liability (asset) was measured as of June 30, 2018 and the total pension

liability (asset) used to calculate the net pension liability (asset) was based on a projection of the City’s share

of contributions to the pension plan relative to the contributions of all participating entities. At June 30, 2018,

the City’s proportion was 0.01040210%, which is an increase (decrease) of 0.0004454% from its proportion

measured as of June 30, 2017.

For the year ended December 31, 2018, the City recognized pension expense (reduction of pension expense) of

$18,190.77. At December 31, 2018 the City reported deferred outflows of resources and deferred inflows of

resources related to pensions from the following sources:

Deferred

Outflows of

Resources

Deferred Inflows

of Resources

Difference between expected and actual experience. 9,169.43$ -$

Changes in assumption. 61,592.16$ -$

-$ 18,334.98$

1,399.44$ 2,341.84$

6,686.74$ -$

Total 78,847.76$ 20,676.82$

Net difference between projected and actual

earnings on pension plan investments.

Changes in proportion and difference between

City contributions and proportionate share of

contributions.

City contributions subsequent to the

measurement date.

The City reported $6,686.74 as deferred outflow of resources related to pensions resulting from contributions

subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year

ending December 31, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of

resources related to pensions will be recognized in pension expense (reduction of pension expense) as follows:

37

Year Ended

December 31

2019 33,080.29

2020 24,392.13

2021 (3,734.97)

2022 (2,253.25)

2023 -

Thereafter -

Total 51,484.20

Actuarial Assumptions:

The total pension liability (asset) in the June 30, 2018 actuarial valuation was determined using the following

actuarial assumptions, applied to all periods included in the measurement:

Inflation 2.25 percent

Salary Increases Graded by years of service, from 6.50% at entry to 3.00% after 25

years of service

Discount Rate 6.50% net of plan investment expense

Mortality rates were based on 97% of the RP-2014 Mortality Table, projected generationally with Scale MP-

2017, white collar rates for females and total dataset rates for males. Mortality rates for disabled members were

based on the RP-2014 Disabled Retiree Mortality Table, projected generationally with Scale MP-2017.

Investment portfolio management is the statutory responsibility of the South Dakota Investment Council

(SDIC), which may utilize the services of external money managers for management of a portion of the

portfolio. SDIC is governed by the Prudent Man Rule (i.e., the council should use the same degree of care as a

prudent man). Current SDIC investment policies dictate limits on the percentage of assets invested in various

types of vehicles (equities, fixed income securities, real estate, cash, private equity, etc.). The long-term

expected rate of return on pension plan investments was determined using a method in which best-estimate

ranges of expected future real rates of return (expected returns, net of pension plan investment expense and

inflation) are developed for each major asset class. These ranges are combined to produce the long-term

expected rate of return by weighing the expected future real rates of return by the target asset allocation

percentage and by adding expected inflation. Best estimates of real rates of return for each major asset class

included in the pension plan’s target asset allocation as of June 30, 2018 (see the discussion of the pension

plan’s investment policy) are summarized in the following table using geometric means:

Asset Class

Target

Allocations

Long-Term Expected

Real Rate of Return

Global equity 58.0% 4.8%

Fixed Income 30.0% 1.8%

Real Estate 10.0% 4.6%

Cash 2.0% 0.7%

total 100.0%

Discount Rate:

The discount rate used to measure the total pension liability was 6.50%. The projection of cash flows used to

determine the discount rate assumed that plan member contributions will be made at the current contribution

rate and that matching employer contributions will be made at rates equal to the member rate. Based on these

assumptions, the pension plan’s fiduciary net position was projected to be available to make all future benefit

payments of current plan members. Therefore, the long-term expected rate of return on pension plan

investments was applied to all periods of projected benefit payments to determine the total pension liability

(asset).

38

Sensitivity of liability (asset) to changes in the discount rate:

The following presents the City’s proportionate share of net pension liability (asset) calculated using the

discount rate of 6.50%, as well as what the City’s proportionate share of the net pension liability (asset) would

be if it were calculated using a discount rate that is 1-percentage point lower (5.50%) or 1-percentage point

higher (7.50%) than the current rate:

1% Decrease

Current

Discount

Rate 1% Increase

City's proportionate share of the net

pension liability (asset) 183,231.82$ (242.60)$ (149,489.09)$

Pension Plan Fiduciary Net Position:

Detailed information about the plan’s fiduciary net position is available in the separately issued SDRS financial

report.

10. Component Unit and Contingencies

The City has guaranteed payment of a Revenue Bond issued to the Clear Lake Housing and Redevelopment

Commission (HRC), a component unit of the City, for up to 25% of $342,553.19.

The City has loaned the HRC a total of $15,071 to support debt service obligations against a non-interest-

bearing note with an open due date.

11. Going Concern

The City is not aware of any conditions or events existing that would cause doubt of the City continuing as a

going concern for a reasonable period of twelve months after the financial statement date of issue.

12. Related Party Transactions

One of the Council Members was paid $980 in 2018 and $1,120 in 2017 for spraying.

13. Significant Contingencies – Litigation

At December 31, 2018, the City was not involved in any litigation during 2018 or 2017.

14. Risk Management

The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors

and omissions; injuries to employees; and natural disasters. During the period ended December 31, 2018, the

City managed its risks as follows:

Employee Health Insurance:

The City joined the South Dakota City League Health Pool of South Dakota. This is a public entity risk pool

currently operating as a common risk management and insurance program for South Dakota local government

entities. The City pays a monthly premium to the pool to provide health insurance coverage for its employees.

The pool purchases reinsurance coverage with the premiums it receives from the members. The coverage

includes a no lifetime maximum payment per person.

Liability Insurance:

The City joined the South Dakota Public Assurance Alliance (SDPAA), a public entity risk pool currently

operating as a common risk management and insurance program for South Dakota local government entities.

The objective of the SDPAA is to administer and provide risk management services and risk sharing facilities

to the members and to defend and protect the members against liability, to advise members on loss control

guidelines and procedures, and provide them with management services, loss control and risk reduction

information and to obtain lower costs for that coverage. The City’s responsibility is to promptly report to and

cooperate with the SDPAA to resolve any incident which could result in a claim being made by or against the

City. The City pays a Members’ Annual Operating Contribution, to provide liability coverage detailed below,

under a claims-made policy and the premiums are accrued based on the ultimate cost of the experience to date

39

of the SDPAA member, based on their exposure or type of coverage. The City pays an annual premium to the

pool to provide coverage for General liability, property and building, vehicle, and enhanced crime coverage.

Effective January 1, 2018, SDPAA revised the method of calculating the amount available to be refunded to a

withdrawing member. Upon giving proper written notice to the SDPAA a member may withdraw. Within 120

days following withdrawal, or as soon thereafter as the next Annual Budget is completed, the SDPAA will

advise the withdrawing member of its total calculated portion of contributions made to SDPAA that shall be

refunded. Refunds are calculated based on the pool’s total contributions, along with the member’s total

contribution, current losses, unpaid losses, and loss expenses, the member’s loss ratio, and number of

membership years.

A member who withdraws from the SDPAA shall receive a calculated portion of their contributions refunded

for unpaid casualty losses, based on the following schedule:

All refunds shall be paid to the withdrawing Member over a five-year term.

The amount available for refund to the City is considered a deposit for financial reporting purposes.

As of December 31, 2018, the City’s balance available to be refunded per the SDPAA was $36,879.00, which

was an increase of $17,134.13 from the previous year. The change in the amount available for refund was not

recorded since the City reports on a modified cash basis.

The City carries a $0 deductible for governmental general liability coverage and $1,000 deductible for City

property.

The City does not carry additional insurance to cover claims in excess of the upper limit. Settled claims

resulting from these risks have not exceeded the liability coverage during the past three years.

Worker's Compensation:

The City joined the South Dakota City League Worker's Compensation Fund (Fund), a public entity risk pool

currently operating as a common risk management and insurance program for South Dakota local government

entities. The objective of the Fund is to formulate, develop, and administer, on behalf of the member

organizations, a program of worker’s compensation coverage, to obtain lower costs for that coverage, and to

develop a comprehensive loss control program. The City’s responsibility is to initiate and maintain a safety

program to give its employees safe and sanitary working conditions and to promptly report to and cooperate

with the Fund to resolve any worker’s compensation claims. The City pays an annual premium, to provide

worker's compensation coverage for its employees, under a self-funded program and the premiums are accrued

based on the ultimate cost of the experience to date of the Fund members. Coverage limits are set by state

statute. The pool pays the first $650,000 of any claim per individual. The pool has reinsurance which covers

up to statutory limits in addition to a separate combined employer liability limit of $2,000,000 per incident.

The City does not carry additional insurance to cover claims in excess of the upper limit. Settled claims

resulting from these risks have not exceeded the liability coverage over the past three years.

Unemployment Benefits:

The City provides coverage for unemployment benefits by paying into the Unemployment Compensation Fund

established by state law and managed by the State of South Dakota.

During the year ended December 31, 2018, no claims for unemployment benefits were paid. At December 31,

2018, no claims had been filed for unemployment benefits and none are anticipated in the next fiscal year.

15. Subsequent Events

The City has evaluated for subsequent events through June 10, 2020, the date which the financial statements

were available to be issued. The City is not aware of any subsequent events which would require recognition

or disclosure in the financial statements. A nonrecognized subsequent event has occurred, but the impact of the

COVID-19 pandemic cannot be determined for the City at this time.

40

CITY OF CLEAR LAKE

41

SUPPLEMENTARY INFORMATION

42

Original Final

Revenues:

Taxes:

General Property Taxes 447,317.00$ 447,317.00$ 433,760.27$ (13,556.73)$

General Sales and Use Taxes 263,000.00 263,000.00 270,121.62 7,121.62

Gross Receipts Business Taxes - - 4,363.65 4,363.65

Amusement Taxes 252.00 252.00 240.00 (12.00)

- - 1,568.40 1,568.40

Total Taxes 710,569.00 710,569.00 710,053.94 (515.06)

Licenses and Permits 4,000.00 4,000.00 4,620.61 620.61


State Grants - 713.00 713.00 -


Bank Franchise Tax 2,000.00 2,000.00 2,232.04 232.04

Motor Vehicle Commercial Prorate 2,000.00 2,000.00 3,893.68 1,893.68

Liquor Tax Reversion 4,685.00 4,685.00 8,006.69 3,321.69

Motor Vehicle Licenses (5%) 20,000.00 20,000.00 20,172.77 172.77


County Road Tax (25%) 2,000.00 2,000.00 2,484.37 484.37

County Highway and Bridge Reserve Tax

(25%) 22,000.00 22,000.00 22,888.42 888.42

County Wheel Tax 2,000.00 2,000.00 3,916.15 1,916.15

Total Intergovernmental Revenue 54,685.00 55,398.00 64,307.12 8,909.12


Sanitation 86,000.00 86,000.00 86,034.62 34.62

Culture and Recreation 21,700.00 21,700.00 21,685.90 (14.10)

Total Charges for Goods and Services 107,700.00 107,700.00 107,720.52 20.52

Fines and Forfeits:

Court Fines and Costs 50.00 50.00 365.69 315.69

Total Fines and Forfeits 50.00 50.00 365.69 315.69


Investment Earnings 5,000.00 5,000.00 7,837.23 2,837.23

Rentals 15,000.00 15,000.00 15,692.64 692.64

Special Assessments - - 424.48 424.48

Contributions and Donations from

Private Sources 700.00 700.00 3,600.00 2,900.00

Liquor Operating Agreement Income 8,100.00 8,100.00 8,110.00 10.00

Other 15,000.00 15,000.00 26,086.14 11,086.14

Total Miscellaneous Revenue 43,800.00 43,800.00 61,750.49 17,950.49

Total Revenue 920,804.00 921,517.00 948,818.37 27,301.37

CITY OF CLEAR LAKE

BUDGETARY COMPARISON SCHEDULE - BUDGETARY BASIS

GENERAL FUND


Actual Amounts

(Budgetary

Basis)

Variance with

Final Budget

Positive

(Negative)

Budgeted Amounts

Penalties and Interest on Delinquent

Taxes

43

Original Final

Expenditures:

General Government:

Legislative 27,355.00 28,255.00 28,036.20 218.80

Contingency Amount Transferred 46,670.00 10,070.00 - 10,070.00

Executive 4,155.00 5,155.00 4,839.67 315.33

Elections 1,000.00 1,000.00 - 1,000.00

Financial Administration 84,795.00 92,295.00 80,766.94 11,528.06

Other 39,685.00 39,685.00 35,152.17 4,532.83

Total General Government 203,660.00 176,460.00 148,794.98 27,665.02

Public Safety:

Police 70,225.00 70,225.00 70,222.57 2.43

Fire 36,650.00 36,650.00 36,395.29 254.71

Protective Inspection 640.00 640.00 9.48 630.52

Total Public Safety 107,515.00 107,515.00 106,627.34 887.66

Public Works:

Highways and Streets 299,775.00 324,775.00 297,466.23 27,308.77

Sanitation 88,355.00 90,355.00 87,525.98 2,829.02

Airport 6,690.00 6,690.00 5,224.00 1,466.00

Transit 200.00 200.00 200.00 -

Total Public Works 395,020.00 422,020.00 390,416.21 31,603.79

Health and Welfare:

Health 5,835.00 6,548.00 4,140.59 2,407.41

Ambulance 3,850.00 14,050.00 14,025.00 25.00

Total Health and Welfare 9,685.00 20,598.00 18,165.59 2,432.41


Recreation 74,905.00 74,905.00 64,929.72 9,975.28

Parks 100,745.00 100,745.00 92,714.75 8,030.25

Libraries 38,815.00 38,815.00 38,091.92 723.08

Auditorium 35,850.00 35,850.00 24,442.56 11,407.44

Historical Preservation 2,500.00 2,500.00 2,500.00 -

Total Culture and Recreation 252,815.00 252,815.00 222,678.95 30,136.05

Economic Development 11,400.00 11,400.00 10,052.50 1,347.50

Total Expenditures 980,095.00 990,808.00 896,735.57 94,072.43

(59,291.00) (69,291.00) 52,082.80 121,373.80


Compensation for Loss or Damage to

Capital Assets - - 759.00 759.00 -

Total Other Financing Sources (Uses) - - 759.00 759.00

Net Change in Fund Balances (59,291.00) (69,291.00) 52,841.80 122,132.80

Fund Balance - Beginning 1,788,963.35 1,788,963.35 1,788,963.35 -

FUND BALANCE - ENDING 1,729,672.35$ 1,719,672.35$ 1,841,805.15$ 122,132.80$

Excess of Revenue Over (Under) Expenditures

Actual Amounts

(Budgetary

Basis)

Variance with

Final Budget

Positive

(Negative)

Budgeted Amounts


44

Original Final

Revenues:

Taxes:


Total Taxes 12,000.00 12,000.00 28,088.79 16,088.79

Total Revenue 12,000.00 12,000.00 28,088.79 16,088.79

Expenditures:


Auditorium - 14,000.00 14,147.74 (147.74)

Total Culture and Recreation - 14,000.00 14,147.74 (147.74)

Conservation and Development:

12,000.00 12,000.00 9,360.53 2,639.47

Total Conservation and Development 12,000.00 12,000.00 9,360.53 2,639.47

Debt Service - - -


- (14,000.00) 4,580.52 18,580.52

Net Change in Fund Balances - (14,000.00) 4,580.52 18,580.52

Fund Balance - Beginning 37,146.91 37,146.91 37,146.91 -

FUND BALANCE - ENDING 37,146.91$ 23,146.91$ 41,727.43$ 18,580.52$

Economic Development and Assistance

(Industrial Development)


Budgeted Amounts

CITY OF CLEAR LAKE


LIQUOR, LODGING & DINING GROSS RECEIPTS TAX


Actual Amounts

(Budgetary

Basis)

Variance with

Final Budget

Positive

(Negative)


45

Original Final

Revenues:

Taxes:

General Sales and Use Taxes 300,000.00 300,000.00 270,121.53 (29,878.47)

Total Taxes 300,000.00 300,000.00 270,121.53 (29,878.47)

Total Revenue 300,000.00 300,000.00 270,121.53 (29,878.47)

Expenditures:

Health and Welfare:

Hospitals 300,000.00 300,000.00 270,121.00 29,879.00


- - 0.53 0.53

Net Change in Fund Balances - - 0.53 0.53

Fund Balance - Beginning (0.53) (0.53) (0.53) -

FUND BALANCE - ENDING (0.53)$ (0.53)$ 0.00$ 0.53$


Budgeted Amounts

CITY OF CLEAR LAKE


HEALTH CARE FUND


Actual Amounts

(Budgetary

Basis)

Variance with

Final Budget

Positive

(Negative)


46

Original Final

Revenues:

Fines and Forfeits:

Library 1,000.00 1,000.00 917.27 (82.73)

Total Fines and Forfeits 1,000.00 1,000.00 917.27 (82.73)



Private Sources 3,000.00 3,000.00 6,121.34 3,121.34


Total Revenue 4,000.00 4,000.00 7,038.61 3,038.61

Expenditures:


Libraries 4,000.00 4,000.00 6,389.21 (2,389.21)

Total Culture and Recreation 4,000.00 4,000.00 6,389.21 (2,389.21)

Total Expenditures 4,000.00 4,000.00 6,389.21 (2,389.21)

- - 649.40 649.40

Net Change in Fund Balances - - 649.40 649.40


FUND BALANCE - ENDING 8,177.05$ 8,177.05$ 8,826.45$ 649.40$

Excess of Revenue Over (Under)

Expenditures

Budgeted Amounts

CITY OF CLEAR LAKE


LIBRARY FINES FUND


Actual Amounts

(Budgetary

Basis)

Variance with

Final Budget

Positive

(Negative)


47

CITY OF CLEAR LAKE

48

Original Final

Revenues:

Taxes:

General Property Taxes 439,858.00$ 439,858.00$ 432,482.52$ (7,375.48)$


Gross Receipts Business Taxes - - 4,043.09 4,043.09

Amusement Taxes 300.00 300.00 252.00 (48.00)

- - 2,530.01 2,530.01

Total Taxes 664,158.00 664,158.00 695,985.94 31,827.94

Licenses and Permits 4,200.00 4,200.00 3,528.55 (671.45)


State Grants - 763.00 763.00 -


Bank Franchise Tax 1,500.00 1,500.00 1,657.52 157.52

Motor Vehicle Commercial Prorate 1,500.00 1,500.00 1,486.60 (13.40)

Liquor Tax Reversion 3,100.00 3,100.00 7,903.05 4,803.05

Motor Vehicle Licenses (5%) 20,000.00 20,000.00 20,116.06 116.06

20,000.00 20,000.00 21,784.48 1,784.48


County Road Tax (25%) 2,500.00 2,500.00 2,484.37 (15.63)

County Highway and Bridge Reserve Tax

(25%) 2,000.00 2,000.00 2,280.95 280.95

County Wheel Tax 4,000.00 4,000.00 3,908.83 (91.17)

Total Intergovernmental Revenue 54,600.00 55,363.00 62,384.86 7,021.86


Sanitation 90,500.00 90,500.00 83,098.50 (7,401.50)

Culture and Recreation 22,200.00 22,200.00 26,026.34 3,826.34

Total Charges for Goods and Services 112,700.00 112,700.00 109,124.84 (3,575.16)

Fines and Forfeits:

Court Fines and Costs 50.00 50.00 469.00 419.00

Total Fines and Forfeits 50.00 50.00 469.00 419.00


Investment Earnings 4,000.00 4,000.00 5,081.82 1,081.82

Rentals 10,000.00 10,000.00 15,946.51 5,946.51


Private Sources 300.00 300.00 397.73 97.73

Liquor Operating Agreement Income 20,000.00 20,000.00 21,036.13 1,036.13

Other 7,000.00 7,000.00 11,520.40 4,520.40


Total Revenue 877,008.00 877,771.00 925,475.78 47,704.78

Local Government Highway and Bridge

Fund

Budgeted Amounts

Penalties and Interest on Delinquent

Taxes

CITY OF CLEAR LAKE


GENERAL FUND


Variance with

Final Budget

Positive

(Negative)

Actual Amounts

(Budgetary

Basis)

49

Original Final

Expenditures:

General Government:

Legislative 34,514.00 35,014.00 34,682.28 331.72

Contingency Amount Transferred 42,479.00 25,979.00 - 25,979.00

Executive 4,481.00 5,281.00 5,207.62 73.38

Elections 1,000.00 1,000.00 15.81 984.19

Financial Administration 81,137.00 81,837.00 75,581.33 6,255.67

Other 58,690.00 61,690.00 53,080.08 8,609.92

Total General Government 222,301.00 210,801.00 168,567.12 42,233.88

Public Safety:

Police 69,527.00 69,527.00 69,527.30 (0.30)

Fire 35,055.00 35,555.00 35,445.26 109.74

Protective Inspection 640.00 640.00 67.49 572.51

Total Public Safety 105,222.00 105,722.00 105,040.05 681.95

Public Works:

Highways and Streets 260,820.00 264,820.00 218,726.67 46,093.33

Sanitation 94,545.00 94,545.00 84,100.81 10,444.19

Airport 6,610.00 6,610.00 6,426.78 183.22

Transit 200.00 200.00 200.00 -

Total Public Works 362,175.00 366,175.00 309,454.26 56,720.74

Health and Welfare:

Health 6,335.00 7,098.00 4,278.34 2,819.66

Ambulance 3,800.00 13,800.00 3,676.50 10,123.50



Recreation 71,585.00 75,160.00 70,632.55 4,527.45

Parks 48,480.00 51,980.00 44,452.63 7,527.37

Libraries 36,550.00 36,550.00 34,392.20 2,157.80

Auditorium 26,105.00 34,105.00 26,697.11 7,407.89

Historical Preservation 2,500.00 2,500.00 2,500.00 -

Total Culture and Recreation 185,220.00 200,295.00 178,674.49 21,620.51

Economic Development 7,000.00 7,000.00 6,100.00 900.00

Capital Outlay 20,000.00 - -


(15,045.00) (33,120.00) 149,685.02 182,805.02


Transfers In - - 56,250.52 56,250.52

Total Other Financing Sources (Uses) - - 56,250.52 56,250.52

Net Change in Fund Balances (15,045.00) (33,120.00) 205,935.54 239,055.54

Fund Balance - Beginning 1,650,238.48 1,650,238.48 1,650,238.48 -

FUND BALANCE - ENDING 1,635,193.48$ 1,617,118.48$ 1,788,963.35$ 171,844.87$


Budgeted Amounts

Actual Amounts

(Budgetary

Basis)

Variance with

Final Budget

Positive

(Negative)


50

Original Final

Revenues:

Taxes:


Total Taxes 10,000.00 10,000.00 14,656.16 4,656.16

Total Revenue 10,000.00 10,000.00 14,656.16 4,656.16

Expenditures:


Auditorium - 10,000.00 7,781.43 2,218.57

Total Culture and Recreation - 10,000.00 7,781.43 2,218.57

Economic Development:

Economic Development 5,000.00 5,000.00 5,000.00 -

Total Economic Development 5,000.00 5,000.00 5,000.00 -


Net Change in Fund Balances 5,000.00 (5,000.00) 1,874.73 2,437.59


FUND BALANCE - ENDING 40,272.18$ 30,272.18$ 37,146.91$ 6,874.73$

Budgeted Amounts

CITY OF CLEAR LAKE


LIQUOR, LODGING & DINING GROSS RECEIPTS TAX FUND


Actual Amounts

(Budgetary

Basis)

Variance with

Final Budget

Positive

(Negative)


51

Original Final

Revenues:

Taxes:


Total Taxes 260,000.00 260,000.00 295,283.53 35,283.53

Total Revenue 260,000.00 260,000.00 295,283.53 35,283.53

Expenditures:

Health and Welfare:

Hospitals 260,000.00 310,000.00 287,826.14 22,173.86



- (50,000.00) 7,457.39 57,457.39

Net Change in Fund Balances - (50,000.00) 7,457.39 57,457.39

Fund Balance - Beginning (7,457.92) (7,457.92) (7,457.92) -

FUND BALANCE - ENDING (7,457.92)$ (57,457.92)$ (0.53)$ 57,457.39$


Budgeted Amounts

CITY OF CLEAR LAKE


HEALTH CARE FUND


Actual

Amounts

(Budgetary

Basis)

Variance with

Final Budget

Positive

(Negative)


52

Original Final

Revenues:

Fines and Forfeits:

Library 1,000.00 1,000.00 694.03 (305.97)

Total Fines and Forfeits 1,000.00 1,000.00 694.03 (305.97)



Private Sources 3,000.00 3,000.00 6,208.71 3,208.71


Total Revenue 4,000.00 4,000.00 6,902.74 2,902.74

Expenditures:


Libraries 4,000.00 4,000.00 9,639.20 (5,639.20)

Total Culture and Recreation 4,000.00 4,000.00 9,639.20 (5,639.20)

Total Expenditures 4,000.00 4,000.00 9,639.20 (5,639.20)

- - (2,736.46) (2,736.46)

Net Change in Fund Balances - - (2,736.46) (2,736.46)


FUND BALANCE - ENDING 10,913.51$ 10,913.51$ 8,177.05$ (2,736.46)$


Expenditures

Budgeted Amounts

CITY OF CLEAR LAKE


LIBRARY FINES FUND


Actual Amounts

(Budgetary

Basis)

Variance with

Final Budget

Positive

(Negative)


53

Original Final

Revenues:

Taxes:

General Sales and Use Taxes 39,000.00 39,000.00 38,605.36 (394.64)

Total Taxes 39,000.00 39,000.00 38,605.36 (394.64)


Investment Earnings - - 25.91 25.91

Total Miscellaneous Revenue - - 25.91 25.91

Total Revenue 39,000.00 39,000.00 38,631.27 (368.73)

Expenditures:

Debt Service 38,606.00 75,906.00 75,877.70 28.30

Total Expenditures 38,606.00 75,906.00 75,877.70 28.30

394.00 (36,906.00) (37,246.43) (340.43)


Transfers In (Out) - - (56,250.52) (56,250.52) -

Total Other Financing Sources (Uses) - - (56,250.52) (56,250.52)

Net Change in Fund Balances 394.00 (36,906.00) (93,496.95) (56,590.95)


FUND BALANCE - ENDING 93,890.95$ 56,590.95$ -$ (56,590.95)$


Expenditures

Budgeted Amounts

CITY OF CLEAR LAKE


SALES TAX REVENUE BOND DEBT SERVICE FUND


Actual Amounts

(Budgetary

Basis)

Variance with

Final Budget

Positive

(Negative)


54

CITY OF CLEAR LAKE

NOTES TO THE SUPPLEMENTARY INFORMATION

SCHEDULES OF BUDGETARY COMPARISONS FOR THE GENERAL FUND

Note 1. Budgets and Budgetary Accounting:

The City follows these procedures in establishing the budgetary data reflected in the schedules:

1. At the first regular board meeting in September of each year or within ten days thereafter, the City

Council introduces the annual appropriation ordinance for the ensuing fiscal year.

2. After adoption by the City Council, the operating budget is legally binding and actual expenditures for

each purpose cannot exceed the amounts budgeted, except as indicated in number 4.

3. A line item for contingencies may be included in the annual budget. Such a line item may not exceed

5 percent of the total municipal budget and may be transferred by resolution of the City Council to any

other budget category that is deemed insufficient during the year.

4. If it is determined during the year that sufficient amounts have not been budgeted, state statute allows

the adoption of supplemental budgets.

5. Unexpended appropriations lapse at year end unless encumbered by resolution of the City Council.

6. Formal budgetary integration is employed as a management control device during the year for the

General Fund and special revenue funds.

Note 2. Other Comprehensive Basis of Accounting Modified Cash Basis/Budgetary Accounting Basis

Differences

The financial statements prepared in conformity with USGAAP applied within the context of the modified

cash basis of accounting present capital outlay expenditure information in a separate category of

expenditures. Under the budgetary basis of accounting, capital outlay expenditures are reported within the

function to which they relate. For example, the purchase of a new fire truck would be reported as a capital

outlay expenditure on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund

Balances, however in the Budgetary SI Schedule, the purchase of a fire truck would be reported as an

expenditure of the Public Safety/Fire Department function of government, along with all other current Fire

Department related expenditures.

55

2018 2017 2016 2015 2014

Contractually required contribution 13,491$ 12,411$ 11,930$ 11,856$ 11,553$

Contributions in relation to the

contractually required contribution 13,491$ 12,411$ 11,930$ 11,856$ 11,553$

Contribution deficiency (excess) -$ -$ -$ -$ -$

City's covered-employee payroll 224,855$ 206,854$ 198,825$ 197,600$ 192,550$

Contributions as a percentage of

covered-employee payroll 6.00% 6.00% 6.00% 6.00% 6.00%

* This schedule is presented to illustrate the requirement to show information for 10 years.

However, until a full 10-year trend is compiled, governments should present information for

those years for which information is available.

Schedule of Supplementary Information

SCHEDULE OF THE CITY'S CONTRIBUTIONS

South Dakota Retirement System

Last 5 Fiscal Years *

CITY OF CLEAR LAKE


56

2018 2017 2016 2015 2014

City's proportion of the net pension

liabiltiy (asset) 0.0104021% 0.0099567% 0.0104991% 0.0106333% 0.0109371%

City's proportionate share of net

pension liabiltiy (asset) (243)$ (904)$ 35,465$ (45,099)$ (78,797)$

City's covered-employee payroll 216,248$ 202,298$ 199,633$ 194,133$ 191,267$

City's proportionate share of the net

pension liabiltiy (asset) as a

percentage of its covered-employee

payroll (0.112%) (0.447%) 17.765% (23.231%) (41.198%)

Plan fiduciary net position as a

percentage of the total pension

liabiltiy (asset) 100.02% 100.10% 96.89% 104.10% 107.30%

This schedule is presented to illustrate the requirement to show information for 10 years. However,

until a full 10-year trend is compiled, governments should present information for those years for which

* The amounts presented for each fiscal year were determined as of the measurement date of the

collective net pension asset which is 6/30.

Schedule of Supplementary Information

South Dakota Retirement System

Last 5 Fiscal Years *

(Dollar amounts in thousands)

CITY OF CLEAR LAKE

SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET)


57

CITY OF CLEAR LAKE

NOTES TO THE SUPPLEMENTARY INFORMATION

Schedule of Pension Contributions and Schedule of the

Proportionate Share of the Net Pension Liability (Asset)

Changes of benefit terms:

No significant changes.

Changes of assumptions:

Legislation enacted in 2017 modified the SDRS COLA. For COLAs first applicable in 2018, the SDRS COLA will

equal the percentage increase in the most recent third calendar quarter CPI-W over the prior year, no less than 0.5%

and no greater than 3.5%. However, if the FVFR assuming the long-term COLA is equal to the baseline COLA

assumption (currently 2.25%) is less than 100%, the maximum COLA payable will be limited to the increase that

if assumed on a long-term basis, results in a FVFR equal to or exceeding 100%. That condition existed as of June

30, 2017 and exists again this year as of June 30, 2018. Future COLAs are assumed to equal the current restricted

maximum COLA which was 1.89% as of June 30, 2017 and is 2.03 as of June 30, 2018.

The changes in actuarial assumptions increased the Actuarial Accrued Liability by 1.5% of the Actuarial Accrued

Liability based on the 1.89% COLA, reflecting the current and assumed future restricted maximum COLA of

2.03%.

58

Add Less

Indebtedness New Debt Debt Retired

Revenue Bonds - Sewer 355,668.62$ -$ 35,738.15$ 319,930.47$

Revenue Bonds - Water 288,873.07 - 19,039.16 269,833.91

Special Assessment - Sewer 2,014,526.03 - 35,819.21 1,978,706.82

Total 2,659,067.72$ -$ 90,596.52$ 2,568,471.20$

Add Less

Indebtedness New Debt Debt Retired

Enterprise Long-Term Debt:

Revenue Bonds - Sewer 390,268.47$ -$ 34,599.85$ 355,668.62$

Revenue Bonds - Water 311,710.43 - 22,837.36 288,873.07

Special Assessment - Sewer 2,046,532.02 - 32,005.99 2,014,526.03

Total 2,748,510.92$ -$ 89,443.20$ 2,659,067.72$

Long-Term Debt

January 1, 2017

Long-Term Debt

December 31, 2017

CITY OF CLEAR LAKE

SCHEDULE OF CHANGES IN LONG-TERM DEBT


Long-Term Debt

January 1, 2018

Long-Term Debt

December 31, 2018

Enterprise Long-Term Debt:

Bonds:

Clean Water Revenue Bonds, Series 2004; matures in 2026; interest rate 3.25%;

quarterly payments of $11,716.19. Financed through the Sewer Fund 319,930.47 36,914.01

USDA Rural Development Loan; matures in 2056 1.875% interest rate; $6,107.00

monthly payments. Financed throught the Sewer Fund 1,978,706.82 36,495.83

Drinking Watrer Revenue Bonds, SRF, Series 1998; matures in 2030; interest rate

3.00%; quarterly payments of $6,837.30. Financed through the Water Fund 269,833.91 19,322.58

2,568,471.20$ 92,732.42$

December 31,

2018

Due Within

One Year

YEAR PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST

2019 36,914.01$ 9,950.75$ 36,495.83$ 36,788.17$ 19,322.58$ 8,026.62$ 92,732.42$ 54,765.54$

2020 38,128.28 8,736.48 37,186.03 36,097.97 20,058.11 7,291.09 95,372.42 52,125.54

2021 39,382.63 7,482.13 37,889.29 35,394.71 20,666.65 6,682.55 97,938.57 49,559.39

2022 40,678.26 6,186.50 38,605.86 34,678.14 21,293.67 6,055.53 100,577.79 46,920.17

2023 42,016.49 4,848.27 39,335.97 33,948.03 21,939.70 5,409.50 103,292.16 44,205.80

2024 - 2028 122,810.80 6,067.29 208,124.06 158,295.94 120,096.17 16,649.83 451,031.03 181,013.06

2029 - 2033 - - 228,562.85 137,857.15 46,457.03 1,404.07 275,019.88 139,261.22

2034 - 2038 - - 251,008.80 115,411.20 - - 251,008.80 115,411.20

2039 - 2043 - - 275,659.08 90,760.92 - - 275,659.08 90,760.92

2044 - 2048 - - 302,730.11 63,689.89 - - 302,730.11 63,689.89

2049 - 2053 - - 332,459.66 33,960.34 - - 332,459.66 33,960.34

2054 - 2056 - - 190,649.28 4,958.96 - - 190,649.28 4,958.96

319,930.47$ 43,271.42$ 1,978,706.82$ 781,841.42$ 269,833.91$ 51,519.19$ 2,568,471.20$ 876,632.03$

WATER BOND-SRF TOTAL REVENUE BONDSSEWER BOND-SRF

Annual Requirements to Amortize Long-Term Debt

December 31, 2018

SEWER BOND-USDA


city of clear lake schedule of findings independent ... · finding number 2016-001: the auditor...

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