CITY of SHREVEPORT, LOUISIANA for the Year Ended December 31, 2004
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COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF SHREVEPORT, LOUISIANA For the Year Ended December 31, 2004 Finance Department Elizabeth B. Washington, Director 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. About the Cover The cover features Rivervicw, Shreveporl's newest park, which was funded by the Red River Waterway Commission. Included in the park are a series of interactive fountains that play in time to music and lights, a Rose Plaza complete with 30-fool-tall artist-created rose light sculptures, a waterfall, performance area, giant amphitheater, and boat dock. Picture provided by Morgan, Hill, Sutton, and Mitchell Architects ii CITY OF SHREVEPORT, LOUISIANA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31,2004 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal 1 Certificate of Achievement for Excellence in Financial Reporting 8 Organizational Chart 9 Principal Officials 10 Finance Department 11 FINANCIAL SECTION Independent Auditor's Report 13 Management's Discussion and Analysis 17 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets 31 Statement of Activities 32 Fund Financial Statements: Balance Sheet - Governmental Funds 34 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 36 Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds 38 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities .. 40 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund 42 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Community Development 45 Statement of Net Assets - Proprietary Funds 48 Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds 50 Statement of Cash Flows - Proprietary Funds 51 Statement of Fiduciary Net Assets - Fiduciary Funds 53 Statement of Changes in Fiduciary Net Assets - Fiduciary Funds 54 Statement of Net Assets - Component Units 55 Statement of Activities - Component Units 56 Notes to the Financial Statements 60 III Required Supplementary Information: Trend Data on Pension Funding 109 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds 114 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 116 Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: Riverfront Development 118 Combining Statement of Net Assets - Nonmajor Enterprise Funds 120 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - Nonmajor Enterprise Funds 121 Combining Statement of Cash Flows - Nonmajor Enterprise Funds 122 Combining Statement of Net Assets - Internal Service Funds 126 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - Internal Service Funds 127 Combining Statement of Cash Flows - Internal Service Funds 128 Combining Statement of Net Assets - Fiduciary Funds 132 Combining Statement of Changes in Net Assets - Fiduciary Funds 133 Discretely Presented Component Unit: Metropolitan Planning Commission Balance Sheet 136 Statement of Revenues, Expenditures, and Changes in Fund Balance 137 STATISTICAL SECTION Fund information: General Governmental Expenditures by Function 140 General Governmental Revenues by Source 142 General Fund Expenditures by Function 143 General Fund Revenues by Source 144 General Fund Tax Revenues by Source 145 Property Tax Levies and Collections 146 Assessed and Estimated Actual Value of Taxable Property 147 Summary of Ad Valorem Tax Millage Rates 148 Property Tax Rates and Tax Levies - Direct and Overlapping Governments .... 149 Principal Taxpayers 150 Special Assessment Billings and Collections 151 Computation of Legal Debt Margin 152 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 153 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures 154 Computation of Direct and Overlapping Debt - General Obligation Bonds and Notes 155 Revenue Bond Coverage - Water and Sewer Bonds 156 Revenue Bond Coverage - Municipal and Regional Airports 157 iv Demographic Statistics 158 Property Value, Construction, and Bank Deposits 159 Miscellaneous Statistics 160 VI CITYOF SHREVEPORT AIMmerlcaCtof p.o 110x31109 SUREVF.PORT, LA 7 mo • m4TEXASAVE. SIIREVF.PORT.LATHOI I III.I I I 1I I wcbsilc: www.ci.slirevcptirt.la us May 2,2005 Mayor Keith Hightower Members of the City Council City of Shreveport, Louisiana Mayor and Members of the City Council: In accordance with Section 10.02, paragraph (j), of the City Charier, I am pleased to submit the Comprehensive Annual Financial Report for the year ended December 31, 2004. The financial statements were prepared in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted government auditing standards by a firm of licensed certified public accountants. I believe this report presents comprehensive information about the City's financial and operating activities during 2004 that is useful to taxpayers, citizens, and oilier interested persons. This report was prepared by the Accounting Division of the Finance Department and consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility Tor the completeness and reliability of till of the information presented in this report. To provide a reasonable basis for making these representations, management of Ihc City has established a comprehensive Internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls lias been designed to provide reasonable rallicr than absolute assurance llial the financial statements will be free from material misstatement. In addition to internal controls established by management and those built into the accounting system, the Office of Internal Audit periodically reviews the adequacy of internal controls. The Internal Auditor and her staff are independent of the Finance Department. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. In accordance with Section 4.28 of the City Charter, the City Council is required to provide for an annual independent audit of the accounts and financial transactions of the City by a firm of independent certified public accountants duly licensed to practice in the State of Louisiana. The accounting firm of KPMG LLP was selected by the City to conduct its annual audit. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended December 31,2004, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the fiscal year ended December 31, 2004, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. Profile of the City of Shrevcport The City of Shreveport was incorporated in 1839. It is located on the west bank of the Red River in Northwest Louisiana, approximately thirty miles south of Arkansas and fifteen miles east of Texas. Shreveport is the seat of Caddo Parish and the center of a metropolitan area that includes Bossier, Caddo, and Webster Parishes. Although located primarily in Caddo Parish,