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CITY of BOSSIER CITY, LOUISIANA for The COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF BOSSIER CITY, LOUISIANA for the Year Ended December 31, 2005 Under provisions of state law, this report is a public document Acopy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court. Release Date & ~ -2 - O & Lorenz "Lo" Walker Charles E. Glover Mayor Director of Finance Prepared by Department of Finance INTRODUCTORY SECTION CITY V BOSSIER CITY, LOUISIANA Comn^hensive Annual Financial Report • ended December 31, 2005 Table of Contents Page(s) INTRODUCTORY SECTION Title Page i Table of Contents ii-iv Letter of Transmittal v-x Certificate of Achievement for Excellen|e in Financial Reporting xi Organization Chart xii Elected Officials xiii FINANCIAL SECTION Independent Auditors' Report 1-2 Required Supplemental Information (Unaudited) Management's Discussion and Anal>f is (MD&A) 3-15 Basic Financial Statements Government-Wide Financial Statements (GWFS) Statement of Net Assets 16 Statement of Activities 17 Fund Financial Statements: Balance Sheet - Governmental Fuiijs 18 Reconciliation of the Govemmenta Funds Balance Sheet to the Statement of Net Assets 19 Statement of Revenues, Expenditui^s, and Changes in Fund Balance Governmental Funds 20 Reconciliation of the Govemmenta Funds Statement of Revenues, Expenditures, Changes in Fund Balances to the Statement of Activities 21 Statement of Net Assets - Proprietary Funds 22 Statement of Revenues, Expenses, nd Changes in Net Assets - Proprietary Funds 23 Statement of Cash Flows - Proprie iry Funds 24-25 Statement of Fiduciary Net Assets Fiduciary Funds 26 Statement of Changes in Fiduciary et Assets - Pension Trust Funds 27 Statement of Net Assets - Component Units 28 Statement of Activities - Compone it Units 29 Notes to Basic Financial Statements 30-69 CITY DP BOSSIER CITY, LOUISIANA Comprehensive Annual Financial Report ear ended December 31,2005 Table of Contents Page(s) Required Supplementary Information (Unaudited) Schedules of Funding Progress 70 Notes to Required Supplementary Infcrmation 71 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual on a Budgetary Basis - General Fund 72-73 Schedule of Revenues, Expenditures and Changes in Fund Balance • Budget and Actual - Arena Fund 74 Notes to Budgetary Comparison Schedules 75-76 Combining and Individual Fund Fina icial Statements: Combining Balance Sheet - By Func Type - Nonmajor Governmental Funds 77 Combining Statement of Revenues, 1 upenditures, and Changes in Fund Balances - By Fund Type - Nonm jor Governmental Funds 78 Combining Balance Sheet - Nonmaj< p Special Revenue Funds 79 Combining Statement of Revenues, I <penditures, and Changes in Fund Balances -Nonmajor Special Rev* jue Funds 80 Combining Balance Sheet - Nonmaj< it Debt Service Funds 81 Combining Statement of Revenues, I ^penditures, and Changes in Fund Balances - Nonmajor Debt Service funds 82 Combining Balance Sheet - Nonmaj< r[ Capital Projects Funds 83 Combining Statement of Revenues, I <penditures, and Changes in Fund Balances - Nonmajor Capital Projt jts Funds 84 Combining Statement of Plan Net As ;ets - Pension Trust Funds 85 Combining Statement of Changes in Ian Net Assets - Pension Trust Funds 86 Combining Statement of Changes in Assets and Liabilities - Agency Funds 87 Combining Statement of Net Assets - Internal Service Funds 88 Combining Statement of Revenues, I ijpenses, and Changes in Fund Net Assets - Internal Service Funds 89 Combining Statement of Cash Flows ~ Internal Service Funds 90 Individual Fund Schedules: Schedules of Revenues, Expenditure; and Changes in Fund Balance - Budget and Actual (unaudited): Civic Center Fund 91 Hotel/Motel Taxes 92 Fire Improvements and Operatic^ Fund 93 Jail and Municipal Buildings Futfl 94 Streets and Drainage Fund 95 in CITYbF BOSSIER CITY, LOUISIANA Com ehensive Annual Financial Report ear ended December 31,2005 Table of Contents Table Page(s) STATISTICAL SECTION (UNAUDITED) General Governmental Expenditures y Function - Last Ten Fiscal Years 96 General Revenues by Source - Last' tn Fiscal Years 97 Property Tax Levies and Collections Last Ten Fiscal Years 98 Assessed and Estimated Actual Valu of Taxable Property - Last Ten Fiscal Years 99 Property Tax Rates and Tax Levies - direct and Overlapping Governments - Last Ten Fiscal Yers 100 Ratio of Net General Bonded Debt t( Assessed Value and Net Bonded Debt Per Capita - Last Ten Fiscal ears 6 101 Computation of Legal Debt Margin 7 102 Computation of Direct and Overlapp ig Debt 8 103 Ratio of Annual Debt Service Expen tures for General Bonded Debt to Total General Expenditures - Last 'tn Fiscal Years 9 104 Revenue Bond Coverage - Utility Bcjids — Last Ten Fiscal Years 10A 105 Revenue Bond Coverage - Sales Ta> Jonds - Last Ten Fiscal Years 10B 106 Demographic Statistics - Last Ten F cal Years 11 107 Property Value, Construction, and B nk Deposits - Last Ten Fiscal Years 12 108 Principal Taxpayers 13 109 Miscellaneous Statistics 14 110 Compensation Paid to City Council embers 15 111 IV cr Y OF BOSSIER CITY P. O. BOX B337 BOSSIEKCITY.LOU1SIANA71171-5337 June 13,2006 The Honorable Lorenz "Lo" Walk* , Mayor and Members of the City Counci City of Bossier City, Louisiana: In accordance with Section 4.06 paragraph (7), of the City Charter, I am pleased to submit the Comprehensive Annual Financial 1eport for the year ended December 31, 2005. The financial statements were prepared in conformity wit generally accepted accounting principles (GAAP) and audited in accordance with auditing standard: generally accepted in the United States of America and the standards applicable to financial audits con lined in Government Auditing Standards, issued by the Comptroller General of the United States by firm of licensed certified public accountants. I believe this report presents comprehensive informatiol about the City's financial and operating activities during 2005 that is useful to taxpayers, citizens, and otler interested persons. This report was prepared by the Accounting Division of the Finance Department and consists of management's representations con srning the finances of the City. Consequently, management assumes full responsibility for the complete] ;ss and reliability of all of the information presented in this report. To provide a reasonable basis for mal ng these representations, management of the City has established an internal control framework that is lesigned both to protect the government's assets from loss, theft, or misuse and to compile sufficient re able information for the preparation of the City's financial statements in conformity with GAAP. Becaus the cost of internal controls should not outweigh their benefits, the City's comprehensive framework o internal controls has been designed to provide reasonable rather than absolute assurance that the financia statements will be free from material misstatement. We assert that, to the best of our knowledge and belie . this financial report is complete and reliable in all material respects. In accordance with Section 3.10 of he City Charter, the City Council is required to provide for an annual independent audit of the accounts J)d financial transactions of the City by a firm of independent certified public accountants duly licensed to ractice in the State of Louisiana. The accounting firm of KPMG LLP was selected by the City to condu I its annual audit. The goal of the independent audit was to provide reasonable assurance that the financl il statements of the City for the fiscal year ended December 31,2005, are free of material misstatement. Ime independent audit involved examining, on a test basis, evidence supporting the amounts and disclc ures in the financial statements; assessing the accounting principles used and significant estimates mi de by management; and evaluating the overall financial statement presentation. The independent audi or concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opii ion that the City's financial statements for the fiscal year ended December 31, 2005, are fairly pres nted in conformity with GAAP. The independent auditors* report is presented as the first component of financial section of this report. The Honorable Lorenz "Lo" Walk , Mayor and Members of the City Counci June 13,2006 The independent audit of the fma cial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet special needs of federal grantor agencies. The standards governing Single Audit engagements require ic independent auditor to report not only on the fair presentation of the financial statements, but also on ic audited government's internal controls and compliance with 1 egal requirements, with special emp asis on internal controls and legal requirements involving the administration of federal awards. tiese reports are available in the City's separately issued Single Audit Report. GAAP requires that management Tovide a narrative introduction, overview, and analysis to accompany the basic financial statements in th form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to comj ement MD&A and should be read in conjunction with it. The City's MD&A can be found immediately ollowing the report of the independent auditors. PROFILE OF THE CITY OF BOSSIER The City of Bossier City was inc rporated in 1907. It is located on the east bank of the Red River in Northwest Louisiana, approximat y 3 5 miles south of Arkansas and 20 miles east of Texas. The area dates back to the 1830's when it \ as the Elysian Groves Plantation of James and Mary Cane. Steamboat loads of cotton, corn, and swee potatoes were shipped to markets in the south and east, from the plantation port known to many a "Canes Landing." The current area of the City is approximately 4 3 square miles. The City of Bossier has been orga dzed under a mayor-council form of government since 1977, when the current City charter was adopted b the voters.
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