CITY OF CLAYTON, MISSOURI COMPREHENSIVE ANNUAL FINANCIAL REPORT For The Fiscal Year Ended September 30, 2008 Report prepared and submitted by the Finance Department Contents Page Part I - Introductory Section: Letter Of Transmittal...................................................................................................... i - viii Principal Officials...................................................................................................................ix Organizational Chart .............................................................................................................. x GFOA - Certificate Of Achievement For Excellence In Financial Reporting......................xi Part II - Financial Section: Independent Auditors’ Report .....................................................................................1 - 2 Management’s Discussion And Analysis..................................................................3 - 11 Basic Financial Statements Government-Wide Financial Statements: Statement Of Net Assets............................................................................................... 12 Statement Of Activities................................................................................................. 13 Fund Financial Statements: Balance Sheet - Governmental Funds.......................................................................... 14 Reconciliation Of The Balance Sheet Of Governmental Funds To The Statement Of Net Assets................................................................. 15 Statement Of Revenues, Expenditures And Changes In Fund Balances - Governmental Funds............................................... 16 Reconciliation Of The Statement Of Revenues, Expenditures And Changes In Fund Balances To The Statement Of Activities................................. 17 Statement Of Net Assets - Proprietary Funds............................................................. 18 Statement Of Revenues, Expenses And Changes In Fund Net Assets - Proprietary Funds................................................................ 19 Statement Of Cash Flows - Proprietary Funds............................................................ 20 Statement Of Fiduciary Net Assets - Fiduciary Funds ............................................... 21 Statement Of Changes In Fiduciary Net Assets - Fiduciary Funds ........................... 22 Notes To Basic Financial Statements .........................................................................23 - 50 Required Supplementary Information Budgetary Comparison Information - Budget Basis - General Fund ......................... 51 Notes To Budgetary Comparison Information............................................................. 52 Schedule Of Funding Progress And Employer’s Contributions ...........................53 - 54 Contents Page Part II - Financial Section (Continued): Supplementary Information Nonmajor Governmental Funds: ...........................................................................55 - 56 Combining Balance Sheets: Nonmajor Governmental Funds........................................................................ 57 Nonmajor Special Revenue Funds.................................................................... 58 Nonmajor Capital Projects Funds..................................................................... 59 Nonmajor Debt Service Funds.......................................................................... 60 Combining Statements Of Revenues, Expenditures And Changes In Fund Balances: Nonmajor Governmental Funds.................................................................. 61 Nonmajor Special Revenue Funds.............................................................. 62 Nonmajor Capital Projects Funds............................................................... 63 Nonmajor Debt Service Funds.................................................................... 64 Schedule Of Revenues, Expenditures, And Changes In Fund Balance - Budget And Actual - Budget Basis: Special Taxing District Special Revenue Fund.......................................... 65 Sewer Lateral Special Revenue Fund......................................................... 66 Capital Improvement Project Capital Projects Fund................................. 67 2002 Capital Project Bond Capital Projects Fund...................................... 68 1999 Bond Issue Debt Service Fund........................................................... 69 2005 Bond Debt Service Fund..................................................................... 70 Major Governmental Funds - Budgetary Information: ............................................... 71 Schedule Of Revenues, Expenditures And Changes In Fund Balance Budget And Actual - Budget Basis: Revolving Public Improvement Capital Projects Fund.............................. 72 Equipment Replacements Capital Projects Fund...................................... 73 Proprietary Funds:........................................................................................................ 74 Schedule Of Revenues, Expenses And Changes In Net Assets - Budget And Actual: Parking Facilities Enterprise Fund............................................................ 75 Internal Service Fund.................................................................................. 76 Fiduciary Funds:............................................................................................................ 77 Combining Statement Of Fiduciary Net Assets - Pension Trust Funds............... 78 Combining Statement Of Changes In Fiduciary Net Assets - Pension Trust Funds........................................................................................................ 79 Schedule Of Changes In Fiduciary Net Assets - Budget And Actual: City of Clayton Non-Uniformed Employees’ Retirement Pension Trust Fund.................................................................................... 80 City of Clayton Uniformed Employees’ Pension Trust Fund .......................... 81 Contents Page Part III - Statistical Section (Unaudited): Statistical Section................................................................................................................ 82 Net Assets By Component............................................................................................. 83 Changes In Net Assets ...........................................................................................84 - 85 Fund Balances – Governmental Funds ........................................................................ 86 Changes In Fund Balances - Governmental Funds..................................................... 87 Assessed Value And Actual Value Of Taxable Property ............................................. 88 Direct And Overlapping Property Tax Rates (Residential Only) Per $100 Of Assessed Value.................................................................................................... 89 Principal Property Taxpayers....................................................................................... 90 Property Tax Levies And Collections............................................................................ 91 Ratios Of Outstanding Debt By Type ........................................................................... 92 Ratios Of Net General Bonded Debt Outstanding....................................................... 93 Direct And Overlapping Governmental Activities Debt.............................................. 94 Legal Debt Margin Information.................................................................................... 95 Pledged Revenue Coverage........................................................................................... 96 Demographic And Economic Statistics......................................................................... 97 Principal Employers...................................................................................................... 98 Full-Time Equivalent City Government Employees By Function/Program............... 99 Operating Indicators By Function/Program............................................................... 100 Capital Asset Statistics By Function/Program .......................................................... 101 INTRODUCTORY SECTION THE REPORTING ENTITY AND ITS SERVICES The City of Clayton was incorporated in 1913. Its borders encompass 2.54 square miles and combine a bustling downtown with quiet, secure residential neighborhoods. The City’s downtown is the region’s premier business district and home to Forbes and Fortune 500 headquarters and branches. The City has a residential population of 15,935 and an estimated daytime population of 80,000. The City serves as the governmental seat for St. Louis County, Missouri. The governing body for the City consists of an elected six-member Board of Aldermen and the Mayor who collectively appoint a City Manager to administer daily operations. The City provides a full range of municipal services including public works, parks and recreation, public safety, community development and general administration that are encompassed in the following departments: Public Works, Parks and Recreation, Police, Fire, Finance, Planning and Development, Management Information Systems and Administrative Services. All funds included in this CAFR reflect the above municipal services and subsequent services of the City. FIDUCIARY DUTIES One of the fiduciary duties carried out by the City is pension