Accountants’ Report and Financial Statements June 30, 2007_part3 potx

Consolidated Public Library District No. 3
Known As
Mid-Continent Public Library
Notes to Financial Statements
June 30, 2007


18
Note 5: Special Termination Benefits
The Library has an “Early Retirement Subsidy Program” for qualified employees, whereby the
Library will continue to pay for the qualified employee’s health insurance until age 65 or until the
employee becomes eligible for Medicare, whichever comes first. To qualify, an employee must be at
least 60 years of age and have been employed by the Library for a minimum of 20 consecutive years
as a full-time employee at the time of retirement. The Library has recorded a liability for the pre-
sent value of the expected future payments for the health insurance on retiring qualified employees.
The Library’s total early retirement benefits expense was $28,518
for the year ended June 30,
2007.
The following is a summary of the changes in this liability for the year ended June 30, 2007:

Balance
June 30, 2006
Current Year
Earned and
Changes in
Estimates Payments
Balance
June 30,
2007

Early retirement benefits $ 200,000 $ 28,518 $ (28,518) $ 200,000

Note 6: Long-term Debt
The following table summarizes the changes in governmental activities long-term debt of the Library
for the year ended June 30, 2007:

Outstanding
July 1 Additions Reductions
Outstanding
June 30
Due Within
One Year

Certificate of Participation
Bonds $ — $ 10,000,000 $ — $ 10,000,000 $ 845,000

Unamortized discount —
(15,984) 500 (15,584) —

Total $ 0
$ 9,984,016 $ 500 $ 9,984,416 $ 845,000


On March 1, 2007, the Library issued Series 2007 Certificates of Participation Bonds for
$10,000,000 to finance the construction of a new library branch. Proceeds were deposited in an es-
crow account and reflected in the General Fund as Restricted cash and investments. The Certificates
mature on
various dates through 2017 at interest rates varying from 3.65%-3.9%. Certificates maturing on or
after March 1, 2015 are callable at the option of the District on or after March 1, 2014 at par.
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Consolidated Public Library District No. 3
Known As
Mid-Continent Public Library
Notes to Financial Statements
June 30, 2007


19
Annual debt service requirements are as follows:

Principal Interest Total


2008 $ 845,000 $ 376,345 $ 1,221,345
2009 880,000 345,903 1,225,903
2010 910,000 313343 1,223,343
2011 940,000 279673 1,219,673
2012 975,000 244893 1,219,893
2013-2017 5,450,000
644,503 6,094,503


$ 10,000,000 $ 2,204,660 $ 12,204,660

Interest on the Certificates is exempt from Federal and State of Missouri income taxation. The
Library capitalizes the net interest costs (income) related specifically to borrowings for the project.
Investment income earned from the funds along with the related interest expense capitalized in the
construction of the new library branch as of June 30, 2007 was as follows:
Interest income $ (142,867)

Interest expense 94,186



Net capitalized interest $ (48,681)


Note 7: Significant Estimates and Concentrations
Accounting principles generally accepted in the United States of America require disclosure of certain
significant estimates and current vulnerabilities due to certain concentrations. Those matters in-
clude the following:
• In the ordinary course of business, there are legal proceedings pending against the Library.
Management, after consultation with legal counsel, is of the opinion that the ultimate resolution
of these proceedings will have no material adverse effect on the financial position of the
Library.



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Required Supplementary Information


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Consolidated Public Library District No. 3
Known As
Mid-Continent Public Library

20
Revenues and Expenses Compared to Budget
Year Ended June 30, 2007




Actual

Budget
Over (Under)
Budget


Revenues

Property taxes $ 37,622,692 $ 35,396,060 $ 2,226,632
Federal and state grants 25,845 50,000 (24,155)
Investment income 2,909,400 1,644,910 1,264,490
Fines, fees and other 1,210,345 600,000 610,345
State aid 277,331
274,055 3,276

$ 42,045,613
$ 37,965,025 $ 4,080,588

Salaries and Benefits

Salaries $ 15,080,872 $ 15,098,070 $ (17,198)
Payroll taxes 1,133,777 1,236,394 (102,617)

Retirement 1,972,539 2,165,314 (192,775)
Medical insurance 1,867,138 2,193,054 (325,916)
Life insurance 53,709 72,419 (18,710)
Employee Assistance Program 8,167 8,167 —
Tuition reimbursement 4,659
10,000 (5,341)

20,120,861
20,783,418 (662,557)
Books, Periodicals and Other Library Materials

Books 4,976,377 5,128,698 (152,321)
A-V materials 1,238,254 1,550,000 (311,746)
Microfilm 243,400 200,000 43,400
Periodicals 360,322 361,000 (678)
OCLC Online Comp. Lib. Ctr. 106,293 115,000 (8,707)
Binding 33,788 50,000 (16,212)
Electronic resources 2,397,982
2,605,000 (207,018)

9,356,416
10,009,698 (653,282)
Occupancy Expenses

Buildings 2,844,344 3,931,000 (1,086,656)
Rent 101,754 144,500 (42,746)
Custodial supplies 92,048 95,000 (2,952)
Utilities 695,575 725,000 (29,425)
Furniture and equipment repairs 47,984 50,000 (2,016)
Equipment maintenance contracts (prepaid) 17,281 30,000 (12,719)

Building repairs and maintenance 1,726,028 1,700,910 25,118
Furniture and equipment 165,588
180,000 (14,412)

5,690,602
6,856,410 (1,165,808)



(Continued)
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Consolidated Public Library District No. 3
Known As
Mid-Continent Public Library
Revenues and Expenses Compared to Budget
Year Ended June 30, 2007



21


Actual

Budget
Over (Under)
Budget

General and Administrative

Vehicles $ 84,125 $ 100,000 $ (15,875)
Office and printing supplies 345,839 360,000 (14,161)
Advertising 197,487 225,000 (27,513)
Professional fees 881,429 692,000 189,429
Convention expense 140,578 200,000 (59,422)

Automated circulation system 725,371 800,000 (74,629)
Memberships and dues 31,162 40,000 (8,838)
Postage and freight 469,774 600,000 (130,226)
Telephone 282,136 373,000 (90,864)
Automotive repairs 14,554 15,000 (446)

Gas, oil and lubrication 47,651 50,000 (2,349)
Travel and transportation 111,685 110,000 1,685
Insurance 156,597 255,000 (98,403)
Contingency and miscellaneous 399,880
517,500 (117,620)

3,888,268
4,337,500 (449,232)

$ 39,056,147
$ 41,987,026 $ (2,930,879)


Bond Issuance $ 9,984,016
— $ 9,984,016

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Consolidated Public Library District No. 3
Known As
Mid-Continent Public Library
Schedule of Funding Progress
Year Ended June 30, 2007


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The following summarizes the Library’s funding progress with respect to the Missouri Government
Employees Retirement System (LAGERS).


Actuarial
Valuation
Date

(a)
Actuarial
Value of
Assets

(b)
Actuarial

Accrued
Liability
(b-a)
Unfunded
Accrued
Liability
(UAL)


(a/b)
Funded
Ratio

(c)
Annual
Covered
Payroll
[(b-a)/c]
UAL as a
Percentage
of Covered
Payroll

February 28, 2005 $ 23,444,813 $ 29,857,915 $ 6,413,102 79% $ 10,933,278 59%
February 28, 2006 $ 25,800,207 $ 32,231,309 $ 6,431,102 80% $ 11,237,845 57%
February 28, 2007 $ 27,174,769 $ 32,797,866 $ 5,623,097 83% $ 11,541,434 49%

Note
: The above assets and actuarial accrued liability do not include the assets and present value
of benefits associated with the Benefit Reserve Fund and the Casualty Reserve Fund. The actuarial

assumptions were changed in conjunction with the February 28, 2007 annual actuarial valuations.
For a complete description of the actuarial assumptions used in the annual valuations, please con-
tact the LAGERS office in Jefferson City.



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