Comprehensive Annual Financial Report · 20 cents per 100 dollar valuation. Platte County Public Library District, the first county library district in Missouri, was ... The Library

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PUBLIC LIBRAR Y

mymcpl.org

Mid-Continent Public Library Administrative Headquarters

15616 E. 24 Hwy. Independence, MO 64050

Consolidated Public Library District #3 (known as)

Mid-Continent Public Library

Comprehensive Annual Financial Report

For the Fiscal Year Ended June 30, 2013

Consolidated Public Library District No. 3

Known as


Comprehensive Annual Financial Report

Table of Contents

Page

INTRODUCTORY SECTION

Letter of Transmittal i-vii List of Principal Officials viii Map of Library Branches ix Organizational Chart x Certificate of Achievement for Excellence in Financial Reporting xi

FINANCIAL SECTION

Independent Auditor’s Report 1-2 Management’s Discussion and Analysis 3-9 Basic Financial Statements Government-Wide Statement of Net Position 10 Statement of Activities 11 Fund Financial Statements Governmental Funds: Balance Sheet – Governmental Funds 12 Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds 13 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 14 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 15 Proprietary Fund: Statement of Net Position 16 Statement of Revenues, Expenditures, and Changes in Fund Net Position 17 Statement of Cash Flows 18 Notes to the Basic Financial Statements 19-34 Required Supplementary Information Budgetary Comparison Schedule: General Fund 35-36 Notes to Required Supplementary Information 37 Schedules of Funding Progress 38


Known as


Table of Contents (continued)

Other Supplementary Information Combining Statements and Individual Fund Schedules: Combining Balance Sheet – Nonmajor Governmental Funds 39 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 40 Budgetary Comparison Schedule: Nonmajor Governmental Funds 41 Capital Projects Fund 42

STATISTICAL SECTION (UNAUDITED)

Net Position by Component 43 Changes in Net Position 44 Fund Balances of Governmental Funds 45 Changes in Fund Balances of Governmental Funds 46 Governmental Activities Tax and Other Revenues by Source 47 Assessed Value and Estimated Actual Value of Taxable Property 48 Property Tax Rates Major Direct and Overlapping Governments 49 Principal Property Taxpayers 50 Property Tax Levies and Collections 51 Ratios of Outstanding Debt by Type 52 Direct and Overlapping Governmental Activities Debt 53 Principal Employers 54 Miscellaneous Demographic Data 55 Schedule of Service Locations 56-57


(Known as)

Providing library services in Clay, Jackson, and Platte Counties of Missouri

COMPREHENSIVE ANNUAL FINANCIAL REPORT

For The Fiscal Year Ended

June 30, 2013

Prepared by: Department of Finance and Facilities

Introductory Section

i

September 10, 2013 To the Board of Trustees and the Citizens of the Consolidated Public Library District No. 3 The Comprehensive Annual Financial Report (CAFR) of the Consolidated Public Library District No. 3, known as Mid-Continent Public Library (the Library), for the fiscal year ended June 30, 2013 is hereby submitted. The report was prepared by the Finance Office of the Library and includes the report of the independent certified public accountants, Cochran Head Vick & Co., P.C. This report provides the State of Missouri, citizens, financial institutions, grantor agencies, and other interested parties with reliable information concerning the financial condition of the Library. The report is published to provide the Library Board of Trustees and the public detailed information concerning the financial condition of the Library. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the Library. We believe the information as presented is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the Library as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the Library's financial status have been included. Generally Accepted Accounting Principles (GAAP) requires that management provides 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 the MD&A and should be read in conjunction with it. The Library’s MD&A can be found in the Financial Section immediately following the report of the independent auditors. Financial Reporting Entity Mid-Continent Public Library (a Consolidated Public Library District organized under Sections 182.610 RsMo,) functions to provide a public library program, the mission of which is to provide exceptional customer service and expanding access to materials, programs, technology, and a world class genealogy and family history library. The Library is governed by a twelve member Board of Trustees. By Missouri statutes, each county in the library district may appoint four representatives with a four-year term to the Board. The Clay and Platte County Commissions and the Jackson County Executive make these appointments. History of the Library The history of Mid-Continent Public Library begins with the history of the individual county library districts. The amount of the operating levy is an important part of the history, because the operating levy had to be the same in each district in order for them to consolidate. Jackson County Public Library was established in 1947. In April 1963, its operating levy was increased from 10 cents to 20 cents per 100 dollar valuation. Platte County Public Library District, the first county library district in Missouri, was established in 1941 with a 10 cents per 100 dollar valuation operating levy. Clay County Public Library District was not established until April, 1965 with an operating levy of 20 cents per 100 dollar valuation. On November 10, 1965, the recently established Clay County Public Library District and the Jackson County Public Library District agreed to operate jointly as defined by Chapter 182.080 and Chapter 70.210 to 70.320 of the Missouri Revised Statutes and formed the Mid-Continent Public Library Service.

ii

In order to become a full partner in Mid-Continent, Platte County would have to ask its voters to raise the tax levy from 10 to 20 cents. In April of 1968, the levy was approved. On May 21, 1968, a new agreement was signed which included the three county library districts, Clay, Jackson and Platte. On September 17, 1968, the name was shortened from Mid-Continent Public Library Service to Mid-Continent Public Library. In 1971, the Missouri Legislature passed the Consolidated Public Library law. Seven years later, on December 27, 1978, the Clay County Library District consolidated with the Jackson County Library District forming Consolidated Public Library District No. 3. On February 20, 1979, the Platte County Court voted to consolidate the Platte County Library District with Consolidated Public Library District No. 3, known as the Mid-Continent Public Library. In 1983, the Mid-Continent Public Library successfully passed a 15 cent increase in the operating levy for a total of 35 cents and a 10 cent temporary (eight years) building levy. However, since 1984, the Library had to roll back the operating levy to 25 cents and the building levy to 7 cents due to a Missouri constitutional amendment. In 1991, it was apparent that the building program was coming in under budget, but the operating fund was insufficient to staff the new buildings. On June 4, 1991, the District voters reset the operating levy to 32 cents and retired the building levy. However, provisions of State regulations allowed governments to collect up to the highest voter-approved levy. In the case of Mid-Continent Public Library, that is 35 cents. In 2008, the Missouri General Assembly reformed tax regulations so that governments could collect the most recently voted levy amount rather than the highest voted amount. Before 2008, the Library could establish a levy up to 35 cents. Due to the change in Missouri law, the Library can now only establish a levy of 32 cents. The Library has signed reciprocity agreements with the North Kansas City Public Library, Ray County Public Library District and Rolling Hills Consolidated Public Library to extend our library use privileges to patrons in those library districts. Reciprocity is also extended to patrons serviced by any public library that has delivery service and belongs to the Mid-America Library Alliance (MALA). Economic Conditions and Outlook Mid-Continent Public Library is a political sub-division of the State of Missouri within the jurisdiction of Clay, Platte, and Jackson Counties, excluding the Kansas City Public Library District and North Kansas City Public District, with a population according to the 2010 census of 762,446. The Mid-Continent Public Library system consists of the following thirty-one full-service branch libraries totaling 475,000 square feet:

Antioch Edgerton North Oak

Blue Ridge Excelsior Springs Oak Grove

Blue Springs North Grain Valley Parkville

Blue Springs South Grandview Platte City

Boardwalk Kearney Raytown

Buckner Lee’s Summit Red Bridge

Camden Point Liberty Riverside

Claycomo Lone Jack Smithville

Colbern Road North Independence South Independence

Dearborn Midwest Genealogy Center Weston

Woodneath Library Center All above facilities offer a wide variety of programs and services aimed at meeting expectations of customers ranging from pre-school to senior citizen. In addition, the Library operates four unstaffed self-service sites, called “Library-To-Go.” These Library-To-Go sites consist of an audio/visual collection for browsing, computers for public use, public Wi-Fi, a pick-up lockbox system for reserved materials and a book return box.

iii

This new concept in library service is offered at the locations of four local community centers:

Hillcrest Community Center Kansas City North Community Center Kansas City Parks and Recreation Kansas City Parks and Recreation

Marlborough Community Center Platte County Resource Center Kansas City Parks and Recreation Platte County Parks Department

Some significant productivity levels for FY 2012-2013 are the following:

9,177,618 physical items and 619,266 downloadable items were circulated 4,525,764 visits were made to various service outlets. 847,790 research database searches were made 1,364,234 reference/information transactions and in-house use of materials were completed 179,364 people attended library programs

The Library receives 95% of its funding from property tax. During sluggish economic periods, such as the one we are presently experiencing, the Library is increasingly vulnerable while the assessed valuation of both real and personal property values fluctuate. As stated above, the Library could previously establish a levy of up to 35 cents. Due to the change in Missouri law in 2008, the Library can now only establish a levy of 32 cents. With declining property tax values in recent years, continued fluctuations in values, and the tax rate ceiling being moved from 35 cents to 32 cents, the Library will need to be very mindful of revenue and expense conditions and remain nimble to quickly react to changing conditions. The proliferation of and, at times, indiscriminate use of economic development tools such as Tax Increment Financing, Chapter 100, Chapter 353 and Enhanced Enterprise Zones by the many municipalities in the Library District have become a major concern to the Library Board. These developments have caused additional uncertainty concerning the Library’s long term financial outlook. A 2009 study done for the Library showed that a total of $1.9 million in annual library revenue is being diverted to these projects. This is an 11 percent increase from data collected in 2007. Long-term Financial Planning The Library board has approved a three-year strategic plan for fiscal year 2014-16. Mid-Continent Public Library keeps a running Part of the strategic plan is to develop a five-year operating forecast and a five-year capital forecast to preserve long-term financial viability for the Library with funding mechanisms designed to meet strategic needs and to ensure financial flexibility. The Library’s fund balance policy requires a target range of the General Fund’s unassigned fund balance to be 20% to 50% of the subsequent year’s operating budget. The unassigned fund balance as of June 30, 2013 was 45% of the fiscal year 2013-14 operating budget. Relevant Financial Policies Permitted with provisions of Missouri Statutes, the Library Board has adopted an investment policy to allow the Library to invest its funds to certain tax-exempt or taxable bonds issued by a governmental entity in Missouri. The purpose of the investment policy is to ensure the highest investment return with the maximum security of the Library’s funds, while meeting the daily cash flow needs.

iv

Major Initiatives For the Year Capital Plan The Library completed the first draft of a ten year capital plan. This plan evaluates the current physical plant inventory and evaluates the future feasibility of current structures. Work on the plan will continue into 2014 as the library determines potential needs for buildings and service outlets through 2023. Care Connection The Library created a partnership with Truman Heartland Community Foundation’s “Community for All Ages” coalition that developed a new online service called, “Care Connection.” This is a crowd-sourced online resource for the aging to help people find services for allow people to more successfully “age in place.” The online resource also has an evaluation and review feature that allows people that have used the service to share their experience with other users. Customer Centric Transaction Model Building on the success of the customer centric transaction model, the Library expanded this model to include seven locations in 2012-2013. This model places the customer at the center of the transaction, rather than library staff. The primary benefit of the model is that it allows resources to be reallocated to provide more outreach and more new services while not increasing staff positions. Fundraising and Development The Library hired a Fundraising and Development Director and started fundraising for several library projects in FY 2012-13. A primary focus of the new employee will be to work to secure funding for support around the several facets of library system, but especially resources for the Woodneath Library Center project. RFID Exploration The Library explored radio frequency identification (RFID) technology and developed a migration and implementation plan in FY 2012-13. The Library has identified this project as one to be executed in the coming fiscal year. Strategic Plan The Library adopted a new strategic plan. The plan uses many of the principles established by the Public Library Association and the “Planning for Results” methodology. The Library established a new vision and modified the mission. The new plan is focused around services and is intended to foster greater autonomy throughout the library system. Technology Plan The Library adopted a new Technology Plan as required by the Missouri State Library. This plan covers through FY 2016. Virtual Desktop Project The Library successfully virtualized the public computers throughout the library system. This provided the library with substantial savings in maintenance, lease payments, and management of the public computer network. VOIP Telephone Migration The Library migrated to a hosted voice over internet protocol (VOIP) in 2013. This was the first time that the entire library system was able to use the same telephone hardware in every location. In addition, this solution allowed enhanced and more efficient communication opportunities.

v

Woodneath Branch Library Project The Library opened the new Library at Woodneath on June 22, 2013. Throughout the year, the Library worked to purchase the opening collection and prepare to open the new outlet. The Library undertook a master planning process for the thirty-three acres that surround the library. Stabilization efforts continue on the 1850s farmhouse. For the Future Centralized Collection Development The Library is one of the last libraries of its size to have decentralized collection development. While there are some advantages to this system, it costs the library over $600,000 annually in additional overhead expenses to acquire materials in this way. Through 2013-2014, the Library will migrate to a centralized system with dedicated collection development specialists with a goal of more efficient and effective collection acquisitions for the customers. Continued Exploration of Regional Cooperation The Library is very interested in determining new ways to cooperate with neighboring libraries and to make barriers to service less challenging for customers. The Library will start preliminary conversations with The Johnson County Library and Kansas City Public Library to determine potential areas of collaboration and cooperation. Customer Centered Transaction Model Building on the success of the customer centric transaction model, the Library will expand this model to include up to six other locations in 2013-2014. This model places the customer at the center of the transaction, rather than library staff. The primary benefit of the model is that it allows resources to be reallocated to provide more outreach and more new services while not increasing staff positions. Execution of the New Strategic Plan The Library adopted a new service-centered, customer-focused strategic plan in 2012-2013. The plan also relies heavily on “data-driven decision-making.” Consequently, the new plan will result in the need to create several “baseline” years for data. That exercise will be undertaken in 2013-2014. To help facilitate that need, The Library brought a statistical analysis on staff. New Wi-Fi Network In 2012-2013, The Library considered several options to upgrade the wi-fi network with the intent to rebuild the entire network. Unfortunately, that project was not completed. However, The Library determined the necessary new technology, and employed it at the Woodneath Library Center. In 2013-2014, The Library will extend and employ that solution throughout, resulting in savings, increased control of the service, and the ability to capture use statistics. RFID Implementation The Library will start a comprehensive migration to radio frequency identification (RFID) for inventory control and collection security. This migration comes following the exploration study from last year and should help with future implementation of the Customer-Centered Transition Model, material processing, and in several other ways. Summer Reading Study The Library developed a pilot study with the Kansas City Area Education Research Consortium to measure the effectiveness of the annual Summer Reading Programs. A pilot study was conducted with cooperation from the Center, Hickman Mills, and North Kansas City School Districts. In the coming year, results from the pilot study will be shared and The Library will work to expand the study to more of our twenty-two school districts.

vi

Virtual Desktop Project The Library successfully virtualized the public computers throughout the library system in 2012-2013. This provided the library with substantial savings in maintenance, lease payments, and management of the public computer network. The Library intends on extending this project to the staff computer network in 2013-2014 and expects to see similar savings and benefits. Woodneath Campus The Library was successful in opening the Woodneath Library Center in 2012-2013. Continued work on the adaptive reuse of the historic home will continue in 2013-2014, including the commencement of a silent fund-raising campaign. In addition, The Library will work to start executing the “story center” program at Woodneath and the native restoration of the grounds on the surrounding campus. The Library will continue to pursue program partners and partners that can help to provide resources for the projects Internal Controls In developing and evaluating the Library's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of internal controls should not exceed the benefits likely to be derived and that the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the Library's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary Control An annual budget is prepared in accordance with Missouri state statutes for estimated revenues within the governmental fund, itemized by source, and for proposed expenditures for each department and branch, itemized by object and activity. The annual budget is officially adopted by a majority vote of the Board of Trustees in June each year. State statutes provide that the library may not legally exceed budgeted expenditures in any individual fund. The legal level of budgetary control for the Operating Fund is activity as adopted by the Board of Trustees within the budget summary. Budgetary amendments require formal approval of the Board of Trustees. Cash Management Idle cash balances for each fund during the year were invested in demand deposits, U.S. Treasury Notes, U.S. Treasury Bills, federal discount notes, municipal bonds, and repurchase agreements. The Library utilizes a local bank to invest excess cash overnight. The objective is to maximize the return by not allowing excess cash to be placed in an unproductive instrument. State statute limits the types of investment vehicles that can be used and disallows investment in equity instruments, thereby effectively minimizing risk. Risk Management The Library is insured by private carriers for property damage, personal injury, and public official liability. The Library has a blanket crime policy for all employees. Medical, dental, life, long-term disability, and worker's compensation insurance coverage is provided for employees through a private insurance carrier.

vii

Independent Audit The independent auditors' report, which is a significant part of the Comprehensive Annual Financial Report, is included in the financial section. In this report, Cochran Head Vick & Co., P.C., Certified Public Accountants, express their opinion that the financial statements are presented fairly in conformity with accounting principles generally accepted in the United States of America and comment on the scope of their audit. The opinion is unqualified and signifies a substantial level of achievement. Awards and Acknowledgments The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Mid-Continent Public Library for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2012. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable, and efficiently organized comprehensive annual financial report, the contents of which conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current CAFR continues to conform to the Certificate of Achievement Program requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. We wish to express our appreciation to the members of the Board of Trustees for their continued interest and support in planning and conducting the financial operations of the Library in a responsible and progressive manner. Respectfully submitted,

Steven Potter Qun Fang Library Director and C.E.O. Finance and Facilities Manager and C.F.O.

viii


Known as


Board of Trustees

June 30, 2013

Mr. Brent Schondelmeyer, Jackson County, President Mr. Trent Skaggs, Clay County, Vice President Mr. Marvin Weishaar, Clay County, Treasurer Mrs. Joycelyn Tucker Burgo, Jackson County

Mr. John W. Laney, Jackson County Ms. Jane Rinehart, Clay County Mr. Mike Sadler, Platte County

Mr. Paul Thomson, Jackson County Mr. Jeff Vandel, Platte County

Mrs. Michelle Wycoff, Clay County Vacant Seat, Platte County Vacant Seat, Platte County

Administrative Staff

Steven Potter Director of Libraries Susan Wray Assistant Library Director Vicky Baker North Area Regional Manager Christen Stein South Area Regional Manager Don Bridgforth Employee Resource Manager Qun Fang Finance and Facilities Manager Teresa Johnson Senior Office Administrator and Board Secretary

Jim Staley Marketing and Communications Manager

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Government Finance Officers Association

Certificate of Achievement for Excellence

in Financial Reporting

Presented to


Missouri

For its Comprehensive Annual Financial Report

for the Fiscal Year Ended

June 30, 2012

Executive Director/CEO

Financial Section

COCHRAN HEAD VICK & CO., P.C.

& Co

1251 NW Briarcliff Pkwy Suite 125 Kansas City, MO 64116 (816) 584-9955 Fax (816) 584-9958

Other Offices

1333 Meadowlark Lane

Kansas City, KS 66102

(913) 287-4433

(913) 287-0010 FAX

6700 Antioch Rd, Suite 460

Merriam, Kansas 66204

(913) 378-1100

(913)378-1177 FAX

400 Jules Street

Suite 415

51, Joseph, MO 64501

(816) 364-1118

(816) 364-6144 FAX

Certified Public Accountants

INDEPENDENT AUDITOR'S REPORT

Board of Trustees Consolidated Public Library District No. 3,

Known as Mid-Continent Public Library Independence, Missouri

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Consolidated Public Library District No. 3, Known as Mid-Continent Public Library (the Library) as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Library's basic financial statements as listed in the accompanying table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control 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 opinions 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 entity'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 of the effectiveness of the entity'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.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Library, as of June 30, 2013, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Change in Accounting Principles

As described in note 11 to the financial statements, the Library adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred inflows of Resources, and Net Position, and early implemented GASB Statement No. 65, Items Previously Recognized as Assets and Liabilities. Our opinion is not modified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that management's discussion and analysis, budgetary comparison information, and schedules of funding progress, which appear as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Library's basic financial statements. The introductory section, combining and individual fund financial statements, budgetary schedules, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual fund financial statements and budgetary schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and budgetary schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated September 10, 2013, on our consideration of the Library's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Library's internal control over financial reporting and compliance.

Kansas City, Missouri September 10, 2013

~-r;v\. f-1-;J v, £ crfiZ) f C~ 2

Consolidated Public Library District No. 3 Known As

Mid-Continent Public Library Management’s Discussion and Analysis

June 30, 2013

3

The discussion and analysis of Mid-Continent Public Library (the Library) provides an overview of the Library’s financial activities for the year ended June 30, 2013. While profit is not a motive of the Library, a strong financial position allows the Library to deliver excellent services to the taxpayers of the District. This discussion and analysis should be read in conjunction with the accompanying financial statements of the Library.

Financial Highlights

Governmental funds cash and investments decreased by $4,769,134, primarily due to the construction cost of the new Woodneath branch.

Total assets at year-end amounted to $123,863,055, which exceeded total liabilities by the amount of $110,006,025, resulting in a highly positive net position.

Total governmental fund revenues were $41,164,053, a decrease from 2012 in the amount of $29,664, or 0.1%, due to the decrease of investment income and contributions.

At the end of the fiscal year, the Library’s governmental funds reported combined ending fund balances of $37,881,217. Approximately 50% of this total amount is available for spending at the Library’s discretion (unassigned fund balance.)

Overview of Financial Statements

Management’s discussion and analysis introduces the Library’s basic financial statements. The Library’s basic financial statements include: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the basic financial statements. This report also contains additional required supplementary information (budgetary schedules) in addition to the basic financial statements.

Basic Financial Statements

The first two statements in the basic financial statements are the Government-Wide Financial Statements. They provide both short and long-term information about the Library’s financial status.

The next statements are Fund Financial Statements. These statements focus on the activities of the individual parts of the Library’s activities, providing more detail than the government-wide statements.

The next section of the basic financial statements is the Notes. The notes to the basic financial statements explain in detail some of the data contained in the financial statements. After the notes, Required and Other Supplemental Information is provided to show details about the Library’s individual funds. Budgetary information required by the General Statutes also can be found in this part of the statements.



June 30, 2013

4

Government-Wide Financial Statements

The two government-wide financial statements report information about the Library as a whole using accounting methods similar to those used by private-sector companies.

1. The statement of net position includes all of the Library’s assets and liabilities, with the difference reported as net position. Over time, increases or decreases in the Library’s net position may serve as a useful indicator of whether financial position is improving or deteriorating.

2. The statement of activities reports how the Library’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will not result in cash flows until future fiscal periods.

The government-wide financial statements reflect the Library’s only program, library services, which is a governmental activity. Governmental activities are supported primarily by property taxes.

Fund Financial Statements

Governmental funds focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental fund statement reports short-term fiscal accountability focusing on the use of spendable resources during the year and balances of spendable resources available at the end of the year.

The Library maintains one proprietary fund, an Internal Service Fund. This fund is an accounting device used to accumulate and allocate costs internally among the Library’s various departments and branches. The Library uses this internal service fund to account for the expense of health claims experience plus related fixed fees and access fees on a cost-reimbursement basis.

Notes to the Basic Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.


The basic financial statements are followed by a section of required supplementary information. This section includes a budgetary comparison schedule and schedules of funding progress for the Library’s pension plan and other postemployment benefit plan.



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5

Government-wide Financial Analysis

The following comparative condensed statements serve as the key financial data and indicators for management, monitoring and planning.

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

2013 2012 *Current and other assets 43,893,778$ 48,290,806$ Capital assets 79,969,277 74,149,146

Total assets 123,863,055 122,439,952

Current liabilities 4,779,572 2,735,029 Long-term obligations 9,077,458 10,000,970

Total liabilities 13,857,030 12,735,999 Net position:

Net investment in capital assets 75,223,118 68,102,077 Restricted 222,426 192,894 Unrestricted 34,560,481 41,408,982

Total net position 110,006,025$ 109,703,953$

* restated

Current and other assets totaled $43,893,778 at June 30, 2013 and consisted of cash and investments of $42,240,885, taxes, interest, and other receivable of $1,405,413, and prepaid expenses of $247,480.

Capital assets totaled $79,969,277, net of accumulated depreciation, and consist of land, building, library collection, and furniture, fixture and equipment. At year end, current liabilities totaled $4,779,572, an increase of $2,044,543 from the prior year due to the unpaid construction retainage and library collection for the new Woodneath branch library. As noted earlier, net position may serve over time as a useful indicator of the Library’s financial condition. The assets of the Library exceeded liabilities by $110,006,025 as of June 30, 2013. Of this amount, $34,560,481 is unrestricted, $222,426 is restricted and $75,223,118 reflects the Library’s net investment in capital assets. The Library uses these capital assets to provide services to customers; consequently, these assets are not available for future spending. Although the Library’s investment in its capital assets is reported net of the outstanding related debt, the resources needed to repay that debt must be provided by other sources since the capital assets cannot be used to liquidate these liabilities.



June 30, 2013

6

Consolidated Public Library District No. 3 Known As Mid-Continent Public Library, Changes in Net position

2013 2012*Revenues:

Program revenues:Charges for services 979,373$ 830,558$ Grants and contributions 932,375 989,130 Capital grants and contributions 50,000 -

General revenues:Property taxes 39,773,681 39,034,404 Unrestricted investment revenue (559,749) 280,297

Total revenues 41,175,680 41,134,389

Expenses:Library services 40,650,429 42,970,829 Interest on long-term debt 223,179 277,749

Total expenses 40,873,608 43,248,578

Change in net assets 302,072 (2,114,189)

Net position, beginning of year 109,703,953 111,818,142

Net position, end of year 110,006,025$ 109,703,953$ * Restated

The Library’s net position increased by $302,072 for the fiscal year ended June 30, 2013. Several particular aspects of the Library’s financial operations influenced the total unrestricted net position:

Revenues

The Library is heavily reliant on taxes to support governmental operations. As a result, the general economy and changes in both residential and commercial property values have a major impact on the Library’s revenue streams. In fiscal year of 2012-13, there was an increase of $739,277 in property taxes resulted from the higher assessed valuation of the property in the district and higher estimate of net tax receivable. The Library suffered a net loss of $559,749 in investment income due to the adjustment to market value of investment at the year-end. The Library’s intention is to hold the investment to maturity.



June 30, 2013

7

Expenses

The Library’s total expenses in 2013 were $40,873,608, a decrease of $2,374,970 over the prior year, primarily due to the decrease in depreciation expense and payroll & benefits.

Financial Analysis of the Library’s Major Funds General Fund

The General Fund is the primary operating fund of the Library for day-to-day service delivery. The General Fund’s fund balance was increased by $2,936,324. The total revenue of the General Fund was 0.5% higher than last year’s due to the increase in tax revenues was offset by a reduction in investment income. The total expenditure of the fund was 0.7% higher than last year’s, while the decrease in salaries, wages and benefits was offset by the increase in library materials.

Capital Project Fund

The Capital Project Fund accounts for the acquisition of significant capital assets and/or construction/repair of library facilities. In the fiscal year 2012-2013, the total expenditure of fund was $9,802,358, including $8,582,154 for the new Woodneath branch library, and $1,220,204 for debt service payments. At year end, this fund had an assigned fund balance of $9,800,518 for future capital development.

Budgetary Highlights – General Fund

During the fiscal year, the Library’s board did not amend the General Fund budget. On a budgetary basis, which can be found in the required supplemental information, actual tax revenues were over budgeted by $585,254, or 1.5%. The primary reason for this overage was the result of higher assessed valuation of the property in the district. The total revenues were $56,631 over budgeted amounts as the net loss in investment income offset the increase in property taxes. Actual expenditures were under budgeted expenditures by $2,879,693, primarily resulting from positive budget variance in payroll and benefits, library materials, and the unused contingency account.



June 30, 2013

8

Capital Asset and Debt Administration

Capital assets

The amount invested in capital assets for the Library at June 30, 2013, was $79,969,277, net of accumulated depreciation. The following table provides a summary of capital asset activity. Additional information about the Library’s capital assets can be found in notes 1 and 3 to the basic financial statements.


Mid-Continent Public Library, Capital Assets

Governmental Activities

2013 2012

Capital assets not being depreciated:Land 8,493,401$ 8,493,401$

Construction in progress - 2,184,250 Total capital assets not being depreciated 8,493,401 10,677,651

Capital assets being depreciated:Buildings and improvements 59,341,777 48,463,026 Library Collection 109,807,288 109,527,560 Furniture, Fixtures and Equipment 14,558,056 14,046,938

Total capital assets being depreciated 183,707,121 172,037,524

Accumulated Depreciation (112,231,245) (108,566,029)

Capital assets being depreciated, net 71,475,876 63,471,495

Total capital assets, net 79,969,277$ 74,149,146$

Total net capital assets for the Library as of June 30, 2013 were $79,969,277, $5,820,131 more than 2012, due to the addition of the new library facility: Woodneath Library Center. The biggest decrease in our capital assets came in the area of library collection. The Library has been removing dated materials to make way for new acquisitions, and shifting the focus to digital copies.



June 30, 2013

9

Long-term Debt

At the end of the fiscal year, the Library had outstanding debt obligations of $9,077,458. Of this amount, $4,434,004 is the balance of Series 2007 certificate of participation bond, which is backed by the lease payments from the Library to UMB Bank. Additional information about the Library’s long-term debt can be found in note 5 to the basic financial statements.

Consolidated Public Library District No. 3 Known As Mid-Continent Public Library, Long-term Liabilities

Governmental Activities2013 2012

Governmental activities: Certificate of participation 4,440,000$ 5,450,000$ Unamortized discount (5,996) (7,594)

Certificate of participation, net of discount 4,434,004 5,442,406 Capital leases 312,155 604,663 Compensated absences 1,789,481 1,890,060 Net pension obligation 352,107 354,088 Other postemployment benefits 2,189,711 1,709,753

Total 9,077,458$ 10,000,970$

Request for Information

This report is designed to provide an overview of the Library’s finance for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to the Finance Office, Mid-Continent Public Library, 15616 E. US Highway 24, Independence, Missouri 64050.

Consolidated Public Library District No. 3 Known as


Assets Cash and investments

Property tax receivable

Interest receivable

Other receivable

Prepaid expenses

Capital assets:

Statement of Net Position

June 30, 2013

Land, improvements and construction in progress

Other capital assets, net of depreciation

Total capital assets

Liabilities Accounts payable

Total assets

Accrued wages and benefits

Unearned revenue

Accrued interest payable

Claims payable

Long-term liabilities:

Due within one year

Due in more than one year

Total liabilities

Net Position Net investment in capital assets

Restricted for:

Genealogy and summer reading programs (non-expendable)

Library programs

Unrestricted Total net position

8,493,401

71,475,876

$

$

See accompanying notes to the basic financial statements 10

Governmental

Activities

42,240,885

1 '151 ,945

84,032

169,436

247,480

79,969,277

123,863,055

3,380,244

971,320

93,925

63,917

270,166

2,773,574

6,303,884

13,857,030

75,223,118

62,422

160,004

34,560,481 11 0,006,025

Functions/Programs

Governmental Activities:


Known as


Statement of Activities

For the Year Ended June 30, 2013

Program Revenues Operating Capital

Expenses

Charges for

Services

Grants and Grants and

Contributions Contributions

Net (Expense)

Revenue and

Changes in

Net Assets

Activities

Activities

Library services $ 40,650,429 $ 979,373 $ 932,375 $ 50,000 $ (38,688,681)

(223, 179) Interest on long-term debt 223,179 ~------------~----~--------------------~---------------------------------------------Total government activities $ 40,873,608 $ 979,373 $ 932,375 $ 50,000 ========================================

General revenues:

Taxes:

Property taxes

Unrestricted investment earnings

Total general revenues

Change in net position

Net position, beginning of year, as restated

Net position, end of year


(38,911 ,860)

39,773,681

(559,749)

39,213,932

302,072

109,703,953

$ 110,006,025

Assets:

Cash and investments $

Property tax receivable

Interest receivable

Other receivable

Due from/to other funds

Prepaid expenditures

Total assets $

Liabilities:

Accounts payable $

Accrued wages and benefits

Unearned revenue

Total liabilities

Deferred inflows of resources:

Unavailable revenue - taxes

Total deferred inflows

of resources

Fund balances:

Nonspendable:

Prepaid expenditures

Genealogy collection

Summer reading program

Restricted for:

Library programs

Committed for:

Capital projects

Assigned to:

Compensated absences

Capital projects

Library programs

Pension and insurance

Unassigned:

Library operating

Total fund balances

Total liabilities, deferred inflows of

resources and fund balances $


Known as


Balance Sheet - Governmental Funds

June 30, 2013

(with comparative totals for June 30, 2012)

Capital Non major Total

General Project Governmental Governmental

Fund Fund Funds

29,942,241 $ 11,197,770 $ 222,426 $

1,151,945

56,947 27,085

169,436

1,330,412 (1 ,330,412)

247,480

32,898,461 $ 9,894,443 $ 222,426 $

3,380,244 $ $ $

971,320

93,925

4,351,564 93,925

688,624

688,624

247,480

38,634

23,788

160,004

1,789,481

9,800,518

4,880,000

2,000,000

18,941,312

27,858,273 9,800,518 222,426

32,898,461 $ 9,894,443 $ 222,426 $


Funds

41,362,437

1,151,945

84,032

169,436

247,480

43,015,330

3,380,244

971,320

93,925

4,445,489

688,624

688,624

247,480

38,634

23,788

160,004

1,789,481

9,800,518

4,880,000

2,000,000

18,941,312

37,881,217

43,015,330

2012

Total

$ 46,131,571

1,126,997

142,155

3,115

261,185

$ 47,665,023

$ 1,276,862

921,846

2,198,708

726,997

726,997

261,185

31,448

20,645

140,801

7,686,897

1,890,060

11,945,609

22,762,673

44,739,318

$ 47,665,023



Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds

June 30, 2013

Amounts reported for governmental activities in the statement of net position are different because:

Ending fund balances - total governmental funds $

Governmental funds report capital outlays as expenditures. However, in the Statement of Net Position the cost of those assets is capitalized and shown at cost or estimated cost, net of accumulated depreciation. This is the amount of net capital assets reported in the Statement of Net Position.

The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items:

Accrued interest payable

Long-term liabilities, net

Deferred inflows of resources that are not available in the governmental funds but are recognized in the Statement of Net Position

The internal service fund is used by management to charge the costs of certain activities, such as health insurance to individual funds. The assets and liabilities of the internal service fund is included in the governmental activities in the Statement of Net Position.

Total net position of governmental activities


$

37,881,217

79,969,277

(63,917}

(9,077,458)

688,624

608,282

110,006,025


Known as


Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds


(with comparative totals for the year ended June 30, 2012)

Capital Non major Total

General Project Governmental Governmental

Fund Fund Funds Funds

Revenues:

Property taxes $ 39,812,054 $ $ $ 39,812,054

Fines, fees and other 979,373 979,373

Investment income (491 ,494) (77,798) 9,543 (559,749)

State aid 381,223 381,223

Contributions 4,863 11 '168 44,172 60,203

Federal, state, and local grants 453,949 37,000 490,949

Total revenues: 41,139,968 (29,630) 53,715 41,164,053

Expenditures:

Current:

Library services:

Salaries, wages and benefits 22,448,137 22,448,137

Periodicals, books and

other library materials 9,110,866 9,110,866

General and administrative 6,302,520 16,152 6,318,672

Capital outlay 24,247 8,582,154 8,606,401

Debt service:

Principal retirements 316,755 1,010,000 1,326,755

Interest and fiscal charges 25,366 210,204 235,570

Total expenditures 38,227,891 9,802,358 16,152 48,046,401

Excess of revenues over

(under) expenditures 2,912,077 (9,831 ,988) 37,563 (6,882,348)

Other financing sources (uses): Transfers in (out)

Proceeds from capital lease 24,247 24,247

Total other financing sources (uses) 24,247 24,247

Net changes in fund balances

Fund balances, beginning of year

Fund balances, end of year

2,936,324 (9,831 ,988) 37,563

24,921,949 19,632,506 184,863

$ 27,858,273 $ 9,800,518 $ 222,426 $


(6,858, 1 01)

44,739,318

37,881,217

2012

Total

$ 39,034,404

830,558

280,297

381,223

251,543

356,364

41,134,389

23,172,620

7,955,915

6,266,887

2,400,226

1,302,425

278,833

41,376,906

(242,517)

(300,000)

202,014

(97,986)

(340,503)

45,079,821

$ 44,739,318



Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of

Governmental Funds to the Statement of Activities


Amounts reported for governmental activities in the statement of activities are different because:

Net changes in fund balances- total governmental funds

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation exceeded capital outlays in the current period.

Capital outlay Depreciation expense

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.

Donation of capital assets

Deferred inflows of resources

The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items.

Interest expense Payment of long-term liabilities Capital lease addition

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Com pen sated absences Other postemployment benefits obligations Net pension obligation

The internal service fund is used by management to charge the costs of certain activities, such as health insurance to individual funds. The change in net position of the internal service fund is reported within the governmental activities.

Total changes in net position of governmental activities

See accompanying notes to the basic financial statements. 15

$

$

(6,858, 101)

15,132,119 (9,361 ,988)

50,000

(38,373)

12,391 1,326,755

(24,247)

100,579 (479,958)

1,981

440,914

302,072

Assets

Current Assets:

Cash and investments


Known as


Statement of Net Position

Proprietary Fund

June 30, 2013

Total current assets

Liabilities

Current Liabilities:

Accrued claims payable

Total current liabilities

Net Position

Unrestricted

Total net position

Internal Service Fund

Health Insurance

$ 878,448

878,448

270,166

270,166

608,282

$ 608,282



Known as


Statement of Revenues, Expenses, and Changes in Fund Net Assets

Proprietary Fund



Health Insurance

Operating Revenues:

Charges for services $

Total operating revenues

Operating Expenses:

Administration

Claims

Total operating expenses

Operating income (loss)

Transfer in

Change in net position

Total net position (deficit)- beginning of the year

Total net position - end of the year $

See accompanying notes to the basic financial statements

17

2,561,802

2,561,802

423,169

1,697,719

2,120,888

440,914

440,914

167,368

608,282


Known as


Statement of Cash Flows

Proprietary Fund


Cash Flows From Operating Activities:

Cash received from the Library

Cash paid for services

Net cash provided by the operating activities

Net increase in cash and cash equivalents

Cash and cash equivalents - beginning of the year

Cash and cash equivalents - end of the year

Reconciliation of operating income (loss) to net cash

provided (used) by operating activities:

Operating income

Adjustments to reconcile operating income to net cash

provided by operating activities:

Increase (decrease) in claims payable

Net cash provided by operating activities


Health Insurance

$ 2,561,802

(2,309, 137)

252,665

252,665

625,783

$ 878,448

$ 440,914

(188,249)

$ 252,665


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

Notes to the Basic Financial Statements June 30, 2013

19

Note 1: Summary of Significant Accounting Policies

The Consolidated Library District No. 3, known as Mid-Continent Public Library (the Library), organized under the Revised Statutes of the State of Missouri, provides library services to portions of Clay, Platte and Jackson counties, excluding the areas serviced by the Kansas City Public Library District and the North Kansas City Public Library. The Library currently operates 31 branches, 3 library-to-go sites, with its administrative headquarters in Independence, Missouri. The accounting and reporting policies of the Library conform to accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant accounting and reporting policies, established in GAAP and practiced by the Library, are discussed below. A. Basis of Presentation The Library’s basic financial statements include both government-wide (reporting the Library as a whole) and fund financial statements (reporting the Library’s major funds). Government-wide Financial Statements The statement of net position and the statement of activities display information about the Library, the primary government, as a whole. All activities of the Library are governmental activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. The government-wide statement of activities presents a comparison between expenses and program revenues for each program of the governmental activities. Expenses are specifically associated with a service, program or department and are therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipients of the goods or services offered by the programs and 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 are presented as general revenues. The comparison of program revenues and expenses identifies the extent to which each program is self-financing or draws from the general revenues of the Library. Internal activity is eliminated in the statement of activities to avoid “doubling up” revenues and expenses. The Library’s net position is reported in three parts—net investment in capital assets; restricted net position; and unrestricted net position. The Library first utilizes restricted resources to finance qualifying activities. The government-wide focus is more on the sustainability of the Library as an entity and the change in the Library’s net assets resulting from the current year’s activities. Fund Financial Statements Fund financial statements report detailed information about the Library. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.



20

Governmental Funds Governmental funds are those through which most governmental functions of the Library are financed. The acquisition, use and balances of the Library’s expendable financial resources and the related liabilities (other than those in proprietary funds) are accounted for through governmental funds.

The major governmental funds of the Library are described below:

General Fund - The General Fund is the principal operating fund of the Library that accounts for all financial transactions not accounted for in other funds. The majority of the current operating expenditures of the Library are financed through revenues received by the General Fund.

Capital Projects Fund - The Capital Projects Fund accounts for the purchase and/or construction of major Library capital projects.

The Library reports the following fund types of nonmajor funds:

Special Revenue Funds - These funds account for specific revenue sources that are restricted for specified purposes. Permanent Funds - These funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support Library programs.

Proprietary Fund

Internal Service Fund - This fund is used to account for the transactions of the Library’s risk management health insurance activities.

B. Measurement Focus and Basis of Accounting Government-wide Financial Statements The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned or when all eligibility requirements have been satisfied and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Non-exchange transactions, in which the Library gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, and donations. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. This differs from the manner in which governmental fund financial statements are prepared, therefore, the governmental fund financial statements include a reconciliation with brief explanations to better identify the relationship between the government-wide statements and the statements for governmental funds.

Governmental Fund Financial Statements All governmental funds are accounted for using the modified accrual basis of accounting and the current financial resources measurement focus. Under this basis, revenues are recognized in the accounting period in which they become measurable and available. Expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable.



21

Revenue Recognition In applying the susceptible to accrual concept under the modified accrual basis, certain revenue sources are deemed both measurable and available (collectible within the current year or within sixty days of year-end and available to pay obligations of the current period). This includes property taxes and investment earnings. Reimbursements due for grant funded projects are accrued as revenue at the time the expenditures are made, or when received in advance, deferred until expenditures are made. Other revenues, certain charges for services, and miscellaneous revenues, are recorded as revenue when received in cash because they are generally not measurable until actually received. Expenditure Recognition The measurement focus of governmental fund accounting is on decreases in net financial resources (expenditures) rather than expenses. Most expenditures are measurable and are recorded when the related fund liability is incurred. However, principal and interest on long-term debt, which have not matured are recognized when paid. Allocations of cost, such as depreciation and amortization, are not recognized in the governmental funds.

Proprietary Fund Financial Statements The economic resources measurement focus and the accrual basis of accounting are utilized by the proprietary fund. Under this basis of accounting, revenues are recognized when earned and expenses are recorded when liabilities are incurred. All assets and liabilities (whether current or noncurrent) associated with a proprietary fund’s activities are included on its statement of net assets. Operating revenues and expenses for proprietary funds are those that result from providing services and producing and delivering goods and/or services. All other revenues and expenses are considered non-operating. In reporting the financial activity of its proprietary funds, the Library applies all applicable Governmental Accounting Standards Board (GASB) pronouncements. C. Financial Statement Accounts Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of certain assets, liabilities, revenues, expenditures, expenses, and other disclosures. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents The Library considers demand deposits and investments purchased with an original maturity date of three months or less, which are not limited as to use, to be cash and cash equivalents.

For purposes of the statement of cash flows, short-term investments held in proprietary funds with a maturity date within three months of the date acquired by the Library, if any, are considered cash equivalents.



22

Investments Investments in nonnegotiable certificates of deposit are carried at cost. All other investments are carried at fair value. Fair value is determined using quoted market prices for all investments carried at fair value other than collateralized mortgage obligations. Fair value of collateralized mortgage obligations is estimated using a published pricing service. Investment income includes interest income and the net change for the year in the fair value of investments carried at fair value. Investment income is assigned to the fund with which the related investment asset is associated. Prepaid Items

The cost incurred in the purchase of subscriptions to periodicals and electronic databases are amortized over the terms of the subscriptions, generally terms are usually one year or less. In addition, certain payments reflect costs applicable to future accounting periods and are recorded as prepaid items. Deferred outflows/inflows of resources

In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The Library did not have any items that would be subject to the new accounting policy.

In addition to liabilities, the statement of financial position and balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The library has only one item, which arises under the modified accrual basis of accounting that qualify for reporting in this category. The governmental funds report unavailable revenue from property taxes that are deferred and recognized as an inflow of resources in the period that the amounts become available. Capital Assets Capital assets acquired for general Library purposes are recorded as expenditures in the governmental fund financial statements and capitalized at cost or estimated historical cost in the governmental activities column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Additions, improvements and costs that significantly extend the useful life of an asset are capitalized. The cost of assets sold or retired and the related amounts of accumulated depreciation are eliminated from the accounts in the year of sale or retirement and any resulting gain or loss is reflected in the basic financial statements. Fully depreciated assets are included in the capital asset accounts until their disposal. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows:

Buildings and improvements 5-35 years Library collection 5-10 years Furniture, fixtures, equipment, and vehicles 3-10 years



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Property Tax Revenues The Library’s property tax is levied each September 1 on the assessed value as of the prior January 1 for all real and personal property located in the respective counties. Property taxes are billed in total by November 1 following the levy date and considered delinquent after January 1. On January 1, a lien attaches to all property for which taxes are unpaid. Assessed values are established by the Jackson, Clay and Platte county assessors subject to review by the County’s Board of Equalization. The assessed value for property, including railroad and utility properties located in the Counties as of January 1, 2012, on which the fiscal year ended June 30, 2013, levy was based, was $11,551,544,453. Property tax levies per $100 assessed valuation for the year ended June 30, 2013 were $0.32 for Jackson, Clay and Platte counties.

Compensated Absences Under the terms of the Library’s personnel policy, employees are granted vacation based upon full or half time status and length of service. Sick leave is granted at the rate of eight hours per month for full time employees and four hours for half time employees. Sick leave may be accumulated up to 960 hours for full time employees and 480 for half time employees. Upon termination, salaried employees with three consecutive years of service are compensated for any unused accrued sick leave at 50% of their current rate of pay.

The liability for compensated absences reported in the government-wide statements has been calculated using the vesting method, in which leave amounts for both employees who currently are eligible to receive termination payments and other employees who are expected to become eligible in the future to receive such payments upon termination are included. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Compensated absences are liquidated by the General Fund.

Interfund Receivables and Payables During the course of operations, transactions occur between individual funds that may result in amounts owed between funds. Those related to the timing of the reimbursement or the purchase of goods and services are classified as “due to and from other funds.” Short-term interfund loans are reported as “interfund receivables and payables.” Long-term interfund loans (noncurrent portion) are reported as “advances from and to other funds.” Interfund receivables and payables between governmental funds are eliminated in the Statement of Net Assets. Interfund Transfers Permanent reallocations of resources between funds of the reporting entity are classified as interfund transfers. For the purpose of the Statement of Activities, all interfund transfers between individual governmental funds have been eliminated.



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Net Position and Fund Balance Classifications Government Wide - As noted previously, in the Government-wide statements, equity is classified as net position and displayed in three components:

Net investment in capital assets – Consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted net position – Consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. Unrestricted net position – All other net assets that do not meet the definition of “restricted” or “net investment in capital assets.”

Governmental Funds – the Library Board has established a Fund Balance Policy (Policy), on the reporting and classifying of fund balance in the governmental funds. Fund balances in governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the Library is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The order of spending regarding the unrestricted fund balance is that committed amounts should be reduced first, followed by the assigned amounts, and then the unassigned amounts. When an expenditure is incurred for which both restricted and unrestricted fund balance is available, the order of spending is to reduce restricted fund balance first, and then unrestricted fund balance. In the governmental fund financial statements, fund balance is composed in five classifications designed to disclose the hierarchy of constraints placed on how fund balance can be spent. The governmental fund types classify fund balances as follows: Nonspendable Fund Balance This portion of fund balance cannot be spent either because it is in nonspendable form or is required to be maintained intact. The Library’s nonspendable fund balance includes:

Prepaid expenditures - this is the amount paid in advance for the following year’s goods and services, which are note spendable resources.

Resources that are required to be maintained for perpetuity in the Library’s permanent funds.

Restricted Fund Balance This portion of fund balance is restricted to specific purposes by state or federal laws, or externally imposed conditions by grantors and creditors. This portion of the Library’s fund balance is restricted for library programs. Committed Fund Balance The limitations of this portion of fund balance are imposed by majority vote by quorum of the Library’s board of trustees. Such limitations remain binding unless modified or rescinded by the library board.



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Assigned Fund Balance The intended use of this portion of fund balance can be established by the library board, board committees, or the library director. It can be appropriated to eliminate a projected deficit in the subsequent year’s operating budget. Unassigned Fund Balance This is the residual net resources after nonspendable, restricted, committed, and assigned. The Policy established a target range of this portion of fund balance is 20% to 50% of the subsequent year’s operating budget. In the event funds are not available to maintain the minimum balance, a designated amount in the operating budget shall be proposed to cover the deficiency over a period not to exceed five fiscal years. In the event the unassigned fund balance exceeds the maximum balance requirement, the excess may be utilized for any lawful purpose approved by the library board, including being transferred to the Capital Project Fund.

Note 2: Deposits and Investments At June 30, 2013, the carrying values of deposits and investments are summarized as follows:

Carrying amount of deposits 105,406$

Investments 41,966,578

Investments held at community foundations 168,901 Total cash and investments 42,240,885$

Government-wide statement of net position 42,240,885$

42,240,885$

At June 30, 2013, the Library had the following investments and maturities:

LessType Fair Value than 1 1-5

U.S. agency obligations 40,101,168$ -$ 40,101,168$ Local government obligations 1,865,410 500,410 1,365,000 Total investments 41,966,578$ 500,410$ 41,466,168$

Maturities in Years

Investment Policy Missouri state statutes authorize the Library, with certain restrictions, to deposit or invest in open accounts, time deposits, U.S. Treasury notes, and certificates of deposit. The Statutes also require that collateral pledged must have a fair value equal to 100% of the funds on deposit, less insured amounts. Collateral securities must be held by the Library or a disinterested third party and must be of the kind prescribed by state statutes and approved by the State of Missouri.



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Credit Risk The credit risk for deposits and investments is the possibility that the issuer/counterparty to an investment will be unable to fulfill its obligations. The Library does not have a policy regarding credit risk. At June 30, 2013, the Library’s investments in U.S agencies obligations not directly guaranteed by the U.S. government were rated AA+ by Standard & Poor’s at year end.

Custodial Credit Risk The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the Library will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the Library will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. At June 30, 2013, the Library’s deposits were insured by Federal depository insurance and uninsured deposits were fully collateralized by securities held in the Library’s name by their financial institution’s agent. The Library’s securities were registered and held by the Library’s financial institution in the Library’s name. Accordingly, management has determined that none of the Library’s deposits or investments was exposed to custodial credit risk as of June 30, 2013. Interest Rate Risk As a means of limiting its exposure to fair value losses arising from rising interest rates, the Library’s investment policy states no funds shall be invested in obligations which are to mature beyond the date that the funds are needed for purposes for which they were received by the Consolidated Public Library District. Concentration of Credit Risk The Library’s investment policy specifies a maximum investment concentration of 50% for municipal bonds issued by any city or county in the State of Missouri, with a maximum of 10% for any one issuer. For all other investments, the policy does not specify maximum or minimum investment concentrations by investment type. As of June 30, 2013, the following table lists the issuers of securities, and the respective fair value of those securities, that represent 5% or more of total Library’s investments:

Issuer Investment Type Total Fair Value Percentage Rating

Fed. National Mortgage Association U.S. agency securities 19,665,910$ 47% AA+Fed. Home Loan Bank U.S. agency securities 16,499,478 39% AA+Fed. Home Loan Mortgage Corp U.S. agency securities 3,935,780 9% AA+

40,101,168$



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Note 3: Capital Assets

The Library’s capital asset activity for the year ended June 30, 2013 was as follows: Beginning Ending

Balances Increases Decreases Balances

Capital assets not being depreciated:

Land 8,493,401$ -$ -$ 8,493,401$

Construction in progress

Woodneath branch 2,184,250 8,497,090 (10,681,340) -

Total capital assets not being depreciated 10,677,651 8,497,090 (10,681,340) 8,493,401

Capital assets being depreciated:

Buildings and improvements 48,463,026 10,878,751 - 59,341,777

Library Collection 109,527,560 5,976,500 (5,696,772) 109,807,288

Furniture, Fixtures and Equipment 14,046,938 511,118 - 14,558,056

Total capital assets being depreciated 172,037,524 17,366,369 (5,696,772) 183,707,121

Less accumulated depreciation for:

Buildings and improvements 16,037,543 1,809,436 17,846,979

Library Collection 81,596,353 6,689,452 (5,696,772) 82,589,033

Furniture, Fixtures and Equipment 10,932,133 863,100 - 11,795,233

Total accumulated depreciation 108,566,029 9,361,988 (5,696,772) 112,231,245

Total capital assets being depreciated, net 63,471,495 8,004,381 - 71,475,876

Total capital assets, net 74,149,146$ 16,501,471$ (10,681,340)$ 79,969,277$

Depreciation expense was charged to Library Services 9,361,988$

Note 4: Interfund Activity A summary of amounts due from/to other funds is as follows:

Due from the Capital Projects Fund to: General Fund $ 1,330,412


Amounts due to the General Fund from the Capital Projects Fund result from the time lag between when capital related expenditures have occurred and when the Capital Projects Fund reimburses the General Fund.



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Note 5: Long-Term Liabilities The following is a summary of long-term liabilities of the Library for the year:

Balance Balance June 30, June 30, Amount Due

2012 Increases Decreases 2013 2014Governmental activities: Certificates of participation 5,450,000$ -$ 1,010,000$ 4,440,000$ 1,050,000$ Unamortized discount (7,594) - (1,598) (5,996) Certificates of participation, net 5,442,406 - 1,008,402 4,434,004 1,050,000 Capital leases 604,663 24,247 316,755 312,155 291,989 Compensated absences 1,890,060 1,206,088 1,306,667 1,789,481 1,431,585 Net pension obligation 354,088 - 1,981 352,107 - Other postemployment benefits 1,709,753 543,410 63,452 2,189,711 -

Total 10,000,970$ 1,773,745$ 2,697,257$ 9,077,458$ 2,773,574$

Certificates of Participation 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. 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. The annual debt service requirements to amortize the Library’s bonds at June 30, 2013, are as follows:

Principal Interest Total

2014 1,050,000$ 169,930$ 1,219,930$

2015 1,090,000 130,555 1,220,555

2016 1,130,000 89,135 1,219,135

2017 1,170,000 45,630 1,215,630

4,440,000$ 435,250$ 4,875,250$

Capital Lease Obligations

The Library has entered into capital leasing agreements for computer equipment and a mailing machine. The scheduled minimum lease payments include interest between 3.0% and 5.0%. The future minimum lease obligation and the net present value of these minimum lease payments as of June 30, 2013 were as follows:

Year ending June 30:

2013-2014 $301,6232014-2015 12,058 2015-2016 7,679 2016-2017 1,650

$323,010Less imputed interest (10,855) Present value of minimum lease payments $312,155



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Note 6: Pension Plans

Plan Description The Library participates in the Missouri Local Government Employees Retirement System (LAGERS), an agent multiple-employer public employee retirement system that acts as a common investment and administrative agent for local government entities in Missouri. LAGERS is a defined benefit pension plan which provides retirement, disability, and death benefits to plan members and beneficiaries. LAGERS was created and is governed by Statute, Section RSMo. 70.600 – 70.755. As such, it is the system’s responsibility to administer the law in accordance with the expressed intent of the General Assembly. The plan is qualified under the Internal Revenue Code Section 401(a) and it is tax-exempt. LAGERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing LAGERS, P.O. Box 1665, Jefferson City, Missouri 65102 or by calling 1-800-447-4334.

Funding Status

The Library’s full-time employees do not contribute to the pension plan. The statutorily required contribution rate is 18.4 % of annual covered payroll. The contribution requirements of plan members are determined by the governing body of the political subdivision. The contribution provisions of the political subdivision are established by state statute.

As of February 28, 2013, which represents the most recent actuarial valuation date, the actuarial accrued liability for benefits within the plan for the Library was $40,308,768. The actuarial value of assets was $30,596,543, which results in an unfunded actuarial accrued liability (UAAL) of $9,712,225 and a funded ratio of 76 percent. The covered payroll (annual payroll of active employees covered by the plan) was $12,482,642, which results in a ratio of the UAAL to the covered payroll of 78 percent.

The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability. The Library’s Annual Pension Cost (APC) and Net Pension Obligation (NPO)

Annual required contribution 2,322,847$

Interest on net pension obligation 25,671 Adjustment to annual required contribution (27,652) Annual pension cost (APC) 2,320,866

Actual contributions 2,322,847 Increase in net pension obligation (NPO) (1,981)

NPO - beginning of year 354,088

NPO - end of year 352,107$



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The annual required contribution (ARC) was determined as part of the February 28, 2011 annual actuarial valuation using the entry age actuarial cost method. The actuarial assumptions as of February 28, 2013 included: (a) a rate of return on the investment of present and future assets of 7.25% per year, compounded annually, (b) projected salary increases of 3.5% per year, compounded annually, attributable to inflation, (c) additional projected salary increases ranging from 0.0% to 6.0% per year, depending on age and division, attributable to seniority/merit, (d) pre-retirement mortality based on 75% of the RP-2000 Combined Healthy Table set back zero years for men and women and (e) post-retirement mortality based on 105% of the 1994 Group Annuity Mortality table set back zero year for men and women. The actuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The amortization period as of the February 28, 2011 valuation was 26 years.

Annual Percentage Net

Year Ended Pension of APC PensionEnding Cost (APC) Contributed Obligation

6/30/2011 2,463,092$ 90.1% 243,846$ 6/30/2012 2,439,880 95.5% 354,088 6/30/2013 2,320,866 100.1% 352,107

Tax Deferred Annuity Plan

During 1994, in order to provide additional retirement benefits for eligible employees, the Library adopted a tax deferred annuity plan underwritten by The Variable Annuity Life Insurance Company. The tax deferred annuity plan is a voluntary plan in which all full or part-time employees are eligible to contribute a portion of their gross salary into a tax-deferred annuity. The Library does not contribute to this plan. Employee contributions for the year ended June 30, 2013 were $345,380.

Note 7: Other postemployment Benefits Plan Description The Library sponsors a single-employer, defined benefit healthcare plan (the Healthcare Plan) that provides healthcare benefits to retirees and their spouses, including medical and pharmacy coverage. All employees of the Library may participate and become eligible once they have reached early retirement age of sixty (60) and have twenty (20) years of service. For retired employees, the Library pays the full cost of health benefits. If spousal coverage is elected, the retiree is required to pay the average cost of benefits provided to all employees. The Healthcare Plan does not issue publicly available financial statements. Retirees and spouses have the same benefits as active employees. Retiree coverage terminates when the retiree reaches Medicare eligibility age which is currently age 65. Spousal coverage is available until the retiree attains Medicare eligibility age or dies. Funding Policy GASB Statement 45 does not require funding of the OPEB liability, and the Library has chosen not to fund it. Library policy dictates the payment of retiree claims as they become due.



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Annual OPEB Cost and Net OPEB Obligation The Library’s annual OPEB cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize the unfunded actuarial liability over a period not to exceed thirty years. The following table shows the components of the Library’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Library’s net OPEB obligation.

Annual required contribution 536,286$

Interest on net OPEB obligation 64,116 Adjustment to annual required contribution (56,992) Annual OPEB cost (expense) 543,410

Less: Expected retiree contributions (63,452) Increase in net OPEB obligation 479,958

Net OPEB obligation - beginning of year 1,709,753 Net OPEB obligation - end of year 2,189,711$

The Library’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2013 and the preceding two years were as follows:

Fiscal Year Annual OPEB Cost Net OPEBEnded OPEB Cost Contributed Obligation

June 30, 2011 364,452$ 9.59% 1,332,033$ June 30, 2012 411,693 8.25% 1,709,753 June 30, 2013 543,410 11.68% 2,189,711

Funded Status and Funding Progress As of July 1, 2011, the most recent actuarial valuation date, the plan was not funded. The actuarial accrued liability for benefits was $4,371,471, all of which is unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $8,396,718, and the ratio of UAAL to the covered payroll was 52.06 percent. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funding status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the basic financial statements, presents trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.



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Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of benefit costs to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the July 1, 2011 actuarial valuation, the aggregate actuarial cost method was used. Under this method, the valuation is performed by calculating the annual accrual, expressed as a level percentage of future payroll of current participants, which would accumulate sufficient total accruals for all post-retirement benefits when due. The annual healthcare cost trend rate was estimated at 10 percent initially, reduced by decrements of .5% annually to an ultimate rate of 7 percent after six years. The actuarial value of assets was determined as the accumulation of prior accruals less benefits paid. Under the aggregate method, the UAAL is amortized along with the normal cost over the present value of future compensation. There is no explicit amortization of the unfunded actuarial accrued liability. Information about funded status and funding progress has been prepared using the entry age accrual cost method and is intended to approximate the funding progress of the plan. Note 8: Operating Leases The Library is committed under leases for office equipment and fiber optical connection. For accounting purposes, these leases are considered to be operating leases. Rental expenditures for the year ended June 30, 2013 amounted to $384,965. Future minimum lease payments for these leases are as follows:

Year ending June 30:2013-2014 $86,5842014-2015 86,584 2015-2016 86,584 2016-2017 62,265 2017-2018 25,019 Total future minumum lease payments $347,036

Note 9: Permanent Funds

The Library has created a genealogy endowment fund to account for contributions received from outside donors related to the genealogy library. The nature of the endowment fund is that the principal of the contributions is to remain intact. One-third of the interest earnings are to be added to the principal and the remaining two-thirds is to be spent on certain activities of the Library. These contributions are accounted for in the Genealogy Permanent Fund. During the year ended June 30, 2013, the Permanent Fund had $1,697 net appreciation on assets available for expenditure which is reported as spendable fund balance and $38,634 in principal which is reported as nonspendable fund balance. Both of these amounts are reported as restricted net assets on the government wide statement of net assets. The State of Missouri requires that recipients of endowment gift maintain the original principal intact at the original donation value. The Library has created a summer reading program endowment fund to account for contributions received from outside donors related to the summer reading program. The nature of the endowment fund is that the principal of the contributions is to remain intact up to a minimum fund balance of $25,000. After achieving the required minimum fund balance, 5% of the value of the fund, based on a three year rolling average calculated annually on December 31st, may be spent on certain activities of the Library. These contributions



33

are accounted for in the Summer Reading Program Permanent Fund. During the year ended June 30, 2013, the Permanent Fund had $23,788 in principal which is reported as nonspendable fund balance. This amount is reported as restricted net assets on the government wide statement of net assets. The State of Missouri requires that recipients of endowment gifts maintain the original principal intact at the original donation value. Note 10: Risk Management The Library 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. The Library carries commercial insurance for the risk of loss, including worker’s compensation. There were no significant reductions in insurance coverage from the prior year, and there have been no settlements that exceed the Library’s insurance coverage during the past three years. The Library provides a self-funded health insurance plan to its eligible employees and retirees. This fund is used to account for the expenses of the plan’s health claims experience plus related fixed fees and access fees. Premiums paid by the Library are recorded as expenditures of the General Fund and revenues in the Internal Service (Health Insurance) Fund. Estimated, but not incurred, medical and prescription claims are accrued as a liability in this fund. The insurance company maintains fiduciary responsibility and the Library’s risk is decreased by purchasing a reinsurance policy, which covers the portion of specific claims in excess of $ 50,000 and aggregate claims in excess of $2,582,803 for the calendar year ended December 31, 2013. Changes in claims liability are as follows:

Beginning of Year

Claims Incurred

Payments/ Adjustments End of Year

2012 451,320$ 2,189,560$ 2,182,465$ 458,415$ 2013 458,415$ 1,509,470$ 1,697,719$ 270,166$

Note 11: Prior Period Restatement of Net Position For 2013, the Library has adopted GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and has early adopted GASB Statement No. 65, Items Previously Reported as Assets and Liabilities.

GASB 63 and GASB 65 establish accounting and financial reporting standards that reclassify as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities. Furthermore, these statements provide guidance for deferred outflows of resources and deferred inflows of resources and their applicability to consumption or acquisition of net position, previously referred to as net assets, by the Library. In addition, the Library evaluated and changed the recording and reporting of delinquent property taxes and the related amounts recognized under the accrual basis of accounting. These amounts are deferred on the fund statements since they are not available under the modified accrual basis of accounting.



34


Net Position, beginning of year as previously reported 109,028,496$

Debt issuance costs (51,540)

Property taxes 726,997 Net Position, beginning of year ,as restated 109,703,953$

Note 12: Subsequent Events The Library evaluated subsequent events through September 10, 2013, the date the financial statements were available to be issued. No events were identified that required adjustment to or disclosure in the financial statements.




Schedule of Revenues & Expenditures - Budget and Actual - General Fund


Revenues: Property taxes Fines, fees and other Investment income State aid Contributions Federal, state, and local grants

Total revenues

Expenditures: Library services:

Salaries, wages and benefits Personnel - salaried Personnel - hourly Social security Unemployment compensation Tuition reimbursement Retirement Medical insurance Life and disability insurance Employee assistance program Employee Resources

Periodicals, books and other library materials: Books Electronic books Periodicals Microfilm Electronic resources A-V materials Library materials processing Live programs

$

35

Original and Final

Budget

39,226,800 908,670 175,000 381,224

2,000 389,643

41,083,337

13,920,000 3,488,456 1,331,747

80,000 15,000

2,561,280 2,767,249

54,455 10,157

101,900 24,330,244

3,451,690 750,000 300,000 50,000

2,175,000 1,925,000

472,000 247,500

9,371,190

Actual

$ 39,812,054 979,373

(491 ,494) 381,223

4,863 453,949

41,139,968

13,293,781 3,116,130 1,213,966

30,413 9,696

2,322,584 2,335,740

40,186 7,375

78,266 22,448,137

3,652,629 734,534 269,449

1,129 2,166,091 1,588,207

458,756 240,071

9,110,866

Variance Over (Under)

with Final Budget

$ 585,254 70,703

(666,494) (1)

2,863 64,306

56,631

(626,219) (372,326) (117,781)

(49,587) (5,304)

(238,696) (431 ,509)

(14,269) (2,782)

{23,634} {1 ,882,107}

200,939 (15,466) (30,551) (48,871)

(8,909) (336,793)

(13,244) {7,429}

{260,324}

(continued)


Mid-Continent Public Library Schedule of Revenues & Expenditures- Budget and Actual- General Fund


General and administrative: Rent - branches Rent - equipment Furniture and equipment Vehicles Technology services Library and office supplies Marketing and Planning Reading initiatives Professional fees Continuing education & convention Memberships and dues Utilities Postage and freight Telephone & telecommunication Furniture and equipment repair Building repair and maintenance Vehicle operations Travel and transportation Insurance Refunds and miscellaneous Contingency

Total library services

Excess of revenues over (under) expenditures

Net change in fund balance

Fund balance, beginning of year

Fund balance end of year

Original and Final

Budget

$

11,800 465,362 104,781

993,018 706,051 342,200 477,140 339,320 117,707 44,200

1,000,500 470,000 675,000

35,000 864,124

90,000 140,000 245,700

10,000 250,000

7,381,903 41,083,337

Reconciliation of budgeted expenditures to GAAP expenditures Total budgeted expenditures Capital outlay - capital lease

Total GMP expenditures

36

Actual

23,353 370,947 139,034

14,000 1,137,743

517,702 332,569 246,269 342,551

93,271 38,981

970,794 317,916 759,521

39,904 846,158

81,588 121,942 234,519

15,879

6,644,641 38,203,644

2,936,324

2,936,324

24,921,949

$ 27,858,273

$ 38,203,644 24,247

$ 38,227,891


with Final Budget

11,553 (94,415) 34,253 14,000

144,725 (188,349)

(9,631) (230,871)

3,231 (24,436)

(5,219) (29,706)

(152,084) 84,521

4,904 (17,966)

(8,412) (18,058) (11,181)

5,879 {250,000} {737,262}

{2,879,693}

2,936,324

$ 2,936,324

Consolidated Public Library District No. 3 Known as Mid-Continent Public Library Notes to Required Supplementary Information

June 30, 2013

37

Budgets and Budgetary Accounting The Library follows these procedures in establishing the budgetary data reflected in the accompanying government-wide financial statements:

On the third Tuesday of May, the Library Director submits to the Board of Trustees (the Board) a proposed budget for the fiscal year commencing the following July 1. The proposed budget includes proposed expenditures and a means of financing them.

A public hearing in June is conducted to obtain taxpayer comments. On the third Tuesday of June, the Board adopts the final budget. If the Board fails to adopt the

budget on or before that date, the budget as submitted or amended, goes into effect. Any revisions that alter total appropriations within any fund must be approved by the Board. Expenditures may not exceed appropriations for any fund without Board approval. Unencumbered

appropriations lapse at year-end. The Library’s practice is to prepare the annual budget on a GAAP basis of accounting except for capital lease obligations. The budgetary comparison schedules are prepared on this basis.


Mid-Continent Public Library Required Supplementary Information

Schedule of Funding Progress - Pension Plan:

(a) (b) Actuarial Actuarial (b)- (a) (a)/(b)

Actuarial value of accrued Unfunded Funded valuation assets liability (AAL) AAL(UAAL) ratio

February 28, 2011 $ 28,517.842 $ 40,877,375 $ 12,359,533 69.76%

February 29,2012 30,768,574 41,701,989 10,933,415 73.78%

February 28, 2013 30,596,543 40,308,768 9,712,225 75.91%

(b)-(a)/(c)

(c) UAAL as a Annual percentage covered of covered

payroll payroll

$ 13,499,929 91.55% 13,155,550 83.11% 12,482,642 77.81%

Note: The above assets and actuarial accrued liability do not include the assets and present value of benefits associated with the Benefits Reserve Fund and the Casualty Reserve Fund. The actuarial assumptions were changed in conjunction with the February 28, 2011 annual valuations. For a complete description of the actuarial assumptions used in the annual valuations, please contact LAGERS office in Jefferson City.

Schedule of Funding Progress - Postemployment Benefits Other than Pensions:

(b)-(a)/(c)

(a) (b) (c) UAALas a

Actuarial Actuarial (b)- (a) (a)/(b) Annual percentage

Actuarial value of accrued Unfunded Funded covered of covered

valuation assets liability (AAL) AAL(UAAL) ratio payroll payroll

July 1, 2009 $ $ 3,302,314 $ 3,302,314 0.00% $ 8,495,145 38.87% July 1, 2011 4,371,471 4,371,471 0.00% 8,396,718 52.06%

38

Other Supplementary Information Combining and Individual Fund

Statements and Schedules

Nonmajor Governmental Funds

Special Revenue Funds

Grants and Gifts Fund -This fund is used to account for gifts and grants provided to the Library for a particular purpose.

James A Leathers Memorial Scholarship Fund- This fund accounts for scholarships provided to qualified participants.

Permanent Funds

Summer Reading Program Fund- This fund is used to report resources that are legally restricted to the extent that earnings exceeding a fund balance of $25,000 may be used for purposes that support the summer reading program.

Genealogy Endowment Fund - This fund is used to report resources that are legally restricted to the extent that two-thirds of earnings, not principal or the remaining one-third of earnings, may be used for purposes that support the genealogy collection.


Known as


Combining Balance Sheet - Nonmajor Governmental Funds

June 30, 2013

James A. Summer

Grants and Leathers Reading Genealogy

Gifts Scholarship Program Endowment

Fund Fund Fund Fund Totals

Assets:

Cash and investments $ 145,113 $ 13,194 $ 23,787 $ 40,332 $ 222,426

Total assets $ 145,113 $ 13,194 $ 23,787 $ 40,332 $ 222,426

Liabilities:

Accounts payable $ $ $ $ $ Total liabilities

Fund balances:

Nonspendable:

Genealogy collection 38,634 38,634

Summer reading program 23,788 23,788

Restricted for:

Library programs 145,113 13,194 1,697 160,004

Total fund balances 145,113 13,194 23,788 40,331 222,426

Total liabilities and

fund balances $ 145,113 $ 13,194 $ 23,788 $ 40,331 $ 222,426

39


Known as


Combining Statement of Revenues, Expenditures, and Changes in Fund Balances



James A. Summer

Grants and Leathers Reading Genealogy

Gifts Scholarship Program Endowment

Fund Fund Fund Fund

Revenues:

Investment income $ 6,165 $ 55 $ 2,943 $ 380

Contributions 36,913 200 7,059

Total revenues: 43,078 55 3,143 7,439

Expenditures:

Current:

Library services 16,152

Total expenditures 16,152

Net changes in fund balances 26,926 55 3,143 7,439

Fund balances, beginning of year 118,187 13,139 20,645 32,892

Fund balances, end of year $ 145,113 $ 13,194 $ 23,788 $ 40,331

40

Totals

$ 9,543

44,172

53,715

16,152

16,152

37,563

184,863

$ 222,426

Revenues:

Investment income

Contributions:

Total revenues:

Expenditures:

Current:

Library services

Total expenditures:

Net changes in fund balances

Fund balances, beginning of year

Fund balances, end of year

Budget

2,000

70,000

72,000

$ 72,000


Known as



Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Nonmajor Funds


James A. Leathers Summer Reading

Grants and Gifts Scholarship Program

Fund Fund Fund

Variance· Variance- Variance-Over Over Over

Actual (under) Budget Actual (under) Budget Actual (under)

6,165 4,165 100 55 (45) 1,000 2,943 1,943

36,913 (33,087) 5,000 200 (4,800)

43,078 (28,922) 100 55 (45) 6,000 3,143 (2,857)

16,152 16,152 2,000 (2,000)

16,152 16,152 2,000 (2.000)

26,926 $ (45,074) $ (1.900) 55 1,955 1,000 3,143 2,143

118,187 13,139 20,645

$ 145,113 13,194 23,788

41

Genealogy Endowment

Fund

Variance-Over

Budget Actual (under)

100 380 280

1,500 7,059 5,559

1,600 7,439 5,839

1,600 7,439 5,839

32,892

40,331


Mid-Continent Public Library Schedule of Revenues & Expenditures - Budget and Actual - Capital Project Fund


Original and Final

Budget Actual Revenues:

Interest on investments $ 175,000 $ (77,798) Federal, state, and local grants 37,000 Contributions and other 50,000 11 '168

Total revenues 225,000 {29,630}

Expenditures: Capital outlay 9,917,717 8,582,154 Periodicals, books and other library materials Debt service payment 1,217,300 1,220,204

Total expenditures 11 '135,017 9,802,358

Excess of revenues over (under) expenditures {10,910,017} {9,831 ,988}

Net change in fund balance $ {10,910,017} (9,831 ,988)

Fund balance, beginning of year 19,632,506

Fund balance end of year $ 9,800,518

42


with Final Budget

$ (252,798) 37,000

{38,832}

{254,630}

(1,335,563)

2,904

{1 ,332,659}

1,078,029

$ 1,078,029

Statistical Section

STATISTICAL SECTION*

This part of the Mid-Continent Public Library's (the Library) comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information indicates about the Library's overall financial health.

Contents Table

Financial Trends

These tables contain trend information to help the reader understand how the Library'sfinancial performance and well-being have changed over time. 1-4

Revenue Capacity

These tables contain information to help the reader assess the Library's mostsignificant local revenue sources: Property Taxes. 5-9

Debt Capacity

These tables present information to help the reader assess the affordability of theLibrary's current levels of outstanding debt and the Library's ability to issue additionaldebt in the future. 10-11

Demographic and Economic Information

These tables offer demographic and economic indicators to help the reader understandthe environment within which the Library's financial activities take place. 12-14

Sources: Unless otherwise noted, the information in these tables is derived from thecomprehensive annual financial reports for the relevant year. The Library implementedGASB Statement 34 in 2003; tables presenting government-wide informationinclude information beginning in that year.

* Certain tables, generally required but irrelevant to the circumstances of the Library, are not presented in this section.

2004 2005

Government activities Net investment in capital assets $48,997,784 $50,177,638 Restricted Unrestricted 39,395,484 41,747,304

Total governmental activities net position $88,393,268 $91,924,942

Consolidated Public Library District 3 Known As


2006

$54,267,407

41,646,787

$95,914,194

Net Position by Component LAST TEN FISCAL YEARS

(accrual basis of accounting)

2007 2008

$ 56,604,905 $ 61,885,324

46,156,755 47,056,984

$102,761,660 $108,942,308

43

2009

$ 67,194,416 89,512

43,940,222

$111,224,150

Table 1

2010 2011 2012 2013

$ 70,095,467 $ 69,619,338 $ 68,102,077 $ 75,223,118 115,629 124,868 192,894 222,426

41,665,863 41.409,933 41,408,982 34,560,481

$111,876,959 $111,154,139 $109,703,953 $110,006,025

Table 2



Changes in Net Position LAST TEN FISCAL YEARS

(accrual basis of accounting)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Expenses Governmental activities:

Library services 31,447,982 31,592,731 33,703,592 34,928,885 37,104,774 41,407,835 41,337,454 42,388,659 42,970,829 40,650,429 Interest on long-term debt 94,168 441,878 371,868 329 932 288,227 277,749 223,179

Total expenses: 31,447,982 31,592,731 33,703,592 35,023,053 37,546,652 41,779,703 41,667,386 42,676,886 43,248,578 40,873,608

Program Revenues Governmental activities:

Charges for services 696,306 700,049 930,846 668,310 797,749 858,451 820,287 801,269 830,558 979,373 Operating grants and contributions 590,843 309,181 298,700 353,176 953,041 740,387 844,858 747,198 989,130 932,375 Capital grants and contributions 127,258 50,000

Total program revenues: 1,287,149 1,009,230 1,229,546 1,021,486 1,750,790 1,726,096 1,665 145 1 548,467 1,819,688 1,961,748

Net (expense)/revenue: Governmental activities (30, 160,833) (30,583,501) (32,474,046) (34,001 ,567) (35,795,862) (40,053,607) (40,002,241) (41,128,419) (41,428,890) (38,911,860)

General Revenues and Changes in Net Position Governmental activities:

Taxes: Property taxes 31,648,070 32,860,994 34,659,775 38,369,850 39,418,959 41,231,928 40,313,379 40,155,537 39,034,404 39,773,681

Unrestricted investment earnings 615,580 1,254,181 1,803,523 2,479,183 2,557,551 1,103,521 341,671 250,062 280,297 (559,749) Total general revenues: 32,263,650 34,115,175 36,463,298 40,849,033 41,976,510 42,335,449 40,655,050 40 405,599 39,314,701 39,213,932

Changes in Net Position Governmental activities 2,102,817 $ 3,531,674 $ 3,989,252 $ 6,847,466 $ 6,180,648 $ 2,281,842 $ 652,809 (722,820) $ (2,114,189) $ 302,072

44

General Fund Nonspendable Restricted Assigned Unassigned

Total General Fund

All other governmental funds Nonspendable Restricted Committed Assigned

Total all other governmental funds

$

$

2004 2005

355,401 382,321

1,345,926 1,405,125 37,872,354 40,132,605 39,573,681 $ 41,920,051

$ $

$ $

2006



Fund Balances of Governmental Funds* LAST TEN FISCAL YEARS

(modified accrual basis of accounting)

2007 2008

405,180 $ 390,485 424,024 $

1,575,097 1,483,667 1,676,685 39,844,707 53,292,314 27,289,029 41,824,984 55,166,466 $ 29,389,738

$ $ 115,000 $

20,191,841 $ $ 20,306,841 $

* The fund balances have been restated to reflect the changes required by GASB 54.

45

Table 3

2009 2010 2011 2012 2013

394,066 288,600 279,860 $ 261,185 $ 247,480 8,031

3,075,674 5,893,333 4,903,193 1,890,060 8,669,481 23,298,317 20,377,244 20,119,042 22,762,673 18,941,312 26,768,057 $ 26,559,177 $ 25,302,095 $ 24,921,949 $ 27,858,273

27,334 27,877 $ 29,916 $ 52,093 $ 62,422 62,178 87,752 94,952 132,770 160,004

7,686,897 19,677,998 17,990,066 19,652,858 11,945,609 9,800,518 19,767,510 $ 18,105,695 $ 19,777,726 $ 19,817,369 $ 10,022,944

Table 4 Consolidated Public Library District 3

Known As Mid-Continent Public Library

Changes in Fund Balances of Governmental Funds LAST TEN FISCAL YEARS

(modified accrual basis of accounting)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Revenues: Property taxes 31,648,070 32,860,994 34,659,775 38,369,850 39,418,959 41,231,928 40,313,379 40,155,537 39,034,404 39,812,054 Fines, fees and other 696,306 700,049 930,846 1,069,372 797,750 858,451 820,287 801,269 830,558 979,373 Investment income 615,580 1,254,181 1,803,523 2,479,183 2,557,551 1,103,521 341,671 248,310 280,297 (559,749) State aid 367,635 309,181 277,331 277,331 367,635 367,635 367,635 334,214 381,223 381,223 Contributions 142,032 168,136 246,621 31,344 39,345 251,543 60,203 Federal and state grants 223,208 21,369 75,845 267,269 276,131 445 879 373 639 356,364 490,949

Total revenues: 33,550,799 35,124,405 37,692,844 42,413,613 43,577,300 44 084,287 42,320,195 41,952,314 41,134,389 41,164,053 Expenditures: Library services 31,019,471 29,332,117 34,046,395 34,563,166 37,970,900 40,578,039 39,064,717 38,502,087 37,395,422 37,877,675 Capital outlay 834,553 3,445,918 3,741,516 4,398,813 11,877,172 5,197,487 3,702,881 2,372,866 2,400,226 8,606,401 Debt service:

Principal 937,243 1,100,539 1,160,838 1,122,303 1,302,425 1,326,755 Interest and fiscal charges 94168 410,466 369,234 327,047 286,549 278,833 235,570

Total expenditures: 31,854,024 32,778,035 37 787,911 39,056,147 51,195 781 47 245,299 44,255,483 42,283 805 41 376,906 48,046,401

Excess of Revenues over 1,696,775 2,346,370 (95,067) 3,357,466 (7,618,481) (3,161,012) (1 ,935,288) (331,491) (242,517) (6,882,348) (under) Expenditures

Other Financing Sources (Uses): Transfer in (out) (300,000) Proceeds from capital lease 664,927 64,593 746,440 202,014 24,247 Debt issuance discount (15,984) Debt issued 10,000,000 Total other financing sources (uses): 9,984,016 664 927 64,593 746 440 (97,986) 24,247

Net Changes in Fund Balances 1,696,775 2,346 370 (95,067) 13,341,482 (6,953,554) (3,161,012) (1,870,695) 414,949 (340,503) (6,858, 1 01)

Debt service as a percentage of Noncapital expenditures 0.00% 0.00% 0.00% 0.29% 3.04% 3.73% 4.21% 4.23% 4.76% 3.92%

46

Table 5


Mid-Continent Public Library Governmental Activities, Tax and Other Revenues By Source

LAST TEN FISCAL YEARS (accrual basis of accounting)

Fiscal Property Fines and Contributions & Year Taxes Interest Fees Grants Other Total

2003-2004 $ 31,648,070 $ 615,580 $ 696,306 $ 590,843 $ - $ 33,550,799

2004-2005 32,860,994 1,254,181 700,049 309,181 35,124,405

2005-2006 34,659,775 1,803,523 930,846 298,700 37,692,844

2006-2007 38,369,850 2,479,183 1,069,372 353,176 142,032 42,413,613

2007-2008 39,418,959 2,557,551 797,750 634,904 168,136 43,577,300

2008-2009 41,231,928 1,103,521 858,451 643,766 246,621 44,084,287

2009-2010 40,313,379 341,671 820,287 813,514 31,344 42,320,195

2010-2011 40,155,537 248,310 801,269 707,853 39,345 41,952,314

2011-2012 39,034,404 280,297 830,558 737,587 251,543 41,134,389

2012-2013 39,773,681 (559,749) 979,373 872,172 110,203 41,175,680

47

Table 6

Consolidated Public Library District 3

Known As


ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS

(In Thousands)

Totals

Assessed Value as a percentage

Real Assessed Estimated Actual Personal Estimated Actual Estimated Actual Total Direct of Estimated Fiscal Year Value* Real Value Assessed Value* Personal Value Assessed Value Value Tax Rate Actual Value

2003-2004 $ 7,130,914 $ 28,523,656 $ 2,104,573 $ 7,015,243 $ 9,235,487 $ 35,538,899 0.3289 25.99%

2004-2005 7,346,374 29,385,496 2,055,404 6,851,347 9,401,778 36,236,843 0.3289 25.95%

2005-2006 7,559,011 30,236,044 2,179,368 7,264,560 9,738,379 37,500,604 0.3225 25.97%

2006-2007 8,561,910 34,247,640 2,338,326 7,794,420 10,900,236 42,042,060 0.3259 25.93%

2007-2008 9,330,584 37,322,336 2,407,228 8,024,093 11,737,812 45,346,429 0.3212 25.88%

2008-2009 9,573,631 38,294,524 2,516,512 8,388,373 12,090,143 46,682,897 0.3214 25.90%

2009-2010 9,408,786 37,635,144 2,379,627 7,932,090 11,788,413 45,567,234 0.3200 25.87%

2010-2011 9,444,918 37,779,672 2,314,762 7,715,873 11,759,680 45,495,545 0.3200 25.85%

2011-2012 9,251,869 37,007,476 2,220,160 7,400,533 11,472,029 44,408,009 0.3200 25.83%

2012-2013 9,295,189 37,180,756 2,256,355 7,521,183 11,551,544 44,701,939 0.3200 25.84%

• The assessed values are provided by the county collector's office for properties residing in partial Jackson county, partial Clay county, and entire Platte county

48

Table 7


Known As


PROPERTY TAX RATES MAJOR DIRECT AND OVERLAPPING GOVERNMENTS PER $100 ASSESSED VALUATION


2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Mid-Continent Public Library 0.3289 0.3289 0.3225 0.3259 0.3212 0.3214 0.3200 0.3200 0.3200 0.3200

Counties- General, Debt, Park, Road/Bridge, and Senior Serv. Clay 0.0499 0.0499 0.0499 0.0499 0.2899 0.2899 0.2899 0.2899 0.2599 0.3790 Jackson 0.6066 0.6066 0.6066 0.5786 0.5771 0.6178 0.6178 0.6178 0.6058 0.6046 Platte 0.6874 0.6274 0.6274 0.6274 0.5968 0.5924 0.6238 0.6238 0.5939 0.5939

School Districts Blue Springs R-#4 5.3893 5.3893 5.3893 5.3893 5.3893 5.5307 5.5307 5.7290 5.7286 5.7286 Center District #58 5.2892 5.3100 5.1571 5.1951 5.8151 5.8151 5.8151 5.8151 6.5751 6.6651 East Buchanan Consolidated #1 4.3300 4.5800 4.8000 4.5000 5.3000 5.3000 5.3000 5.3000 5.3000 5.3000 Excelsior Springs #40 4.6132 4.5132 4.6673 4.7673 4.7673 4.8592 4.8592 5.1500 5.2000 5.2000 Fort Osage R-#1 4.3591 4.9591 4.9591 4.9591 4.9116 4.9096 4.9096 5.3810 5.5000 5.5000 Grain Valley R-#5 4.2419 4.7419 4.9919 4.9919 4.9919 4.9919 4.9919 5.4890 5.5656 5.5333 Grandview Consolidated #4 5.1400 5.4700 5.4500 5.4500 5.4500 5.6132 5.6132 5.8940 5.8936 5.8936 Hickman Mills Consolidated #1 5.1105 5.1800 5.5400 5.5400 5.5400 6.1400 6.1400 6.2720 6.3217 6.3217 Independence #30 5.1900 5.1900 5.0841 5.0841 5.0841 5.0841 5.0841 5.4300 5.5800 5.6700 Kearney R-#1 4.0680 4.5908 4.5425 4.5695 4.4920 4.5105 4.5105 4.6520 5.2123 5.3461 Lee's Summit R-#7 5.4976 6.0666 5.8902 5.8919 5.8116 5.8359 5.8359 6.0550 6.1050 6.0579 Liberty #53 5.6400 5.6400 5.6400 5.6400 5.6400 5.6400 5.6400 6.0950 6.0950 6.0950 Lone Jack Consolidated #6 4.7500 4.7515 4.6878 4.6878 4.6071 4.5936 4.5936 5.5140 5.5314 5.5106 Missouri City #56 3.7868 3.8725 3.8365 3.9442 3.9687 4.0892 4.0892 4.4040 4.2756 4.3433 North Kansas City #7 4 4.9400 5.0500 5.6200 5.6200 5.8900 5.8900 5.8900 5.8900 5.8898 5.8898 North Platte R-#1 3.7800 4.2500 4.4800 4.0400 3.9000 3.9600 3.9600 4.3900 4.6000 4.6000 Oak Grove R-#6 4.0112 4.2000 4.6000 4.2000 4.4329 4.4329 4.4329 4.8650 5.1200 5.0563 Park Hill R-#V 5.6500 5.6500 5.6200 5.6000 5.3000 5.3000 5.3000 5.4130 5.4133 5.5371 Platte County R-#3 4.0500 4.4100 4.3800 4.3700 4.2000 4.2000 4.2000 4.5290 4.5288 4.5288 Raytown Consolidated #2 4.8312 4.8298 4.6367 4.6456 4.6424 5.5324 5.5324 6.3200 6.3200 6.3200 Smithville Consolidated R-#11 4.3000 4.3000 4.2900 4.2800 4.1800 4.1900 4.1900 4.3450 4.4007 4.4048 West Platte R-#11 4.2400 4.9600 4.9600 4.9600 4.5600 4.3300 4.3300 4.4550 4.4500 4.1000

All other taxing districts (Estimated) * 56.3060 59.1708 57.9272 60.2985 58.0141 58.2501 60.5155 63.3163 69.9779 75.5682

* Includes Cities, Community Colleges, Fire and Water Districts, and other special districts

49


Mid-Continent Public Library PRINCIPAL PROPERTY TAXPAYERS

FOR FISCAL YEAR ENDING 2013 AND NINE YEARS AGO

2013 Taxable Percentage of Taxable

Assessed Total Taxable Assessed Taxea~er Value Rank Assessed Value Value

KCP&L $ 120,706,270 1.05%

Ameristar Casino 44,656,532 2 0.39%

Argosy Gaming 33,945,600 3 0.30%

Ford Motor 28,000,860 4 0.24%

Promus Co 26,560,000 5 0.23%

AT&T 22,138,247 6 0.19%

SPG Independence Center 22,094,332 7 0.19%

IBM Credit 21,753,642 8 0.19%

Sprint 19,368,849 9 0.17%

Wai-Mart 18,407,005 10 0.16%

$ 357,631,337 (1) 3.12%

(1) Total assessed valuation for 2012-2013 was $11,438,907,223.

(2) Information for 2004 is not available

50

Table 8

2004 (2) Percentage of Total Taxable

Rank Assessed Value

Total Fiscal Tax Levy Year for

Ended Fiscal Year

2003-2004 $ 29,768,009

2004-2005 30,464,100

2005-2006 33,533,988

2006-2007 34,813,393

2007-2008 36,947,813

2008-2009 38,080,565

2009-2010 37,722,922

2010-2011 37,630,976

2011-2012 35,976,282

2012-2013 36,055,435


Mid-Continent Public Library PROPERTY TAX LEVIES AND COLLECTIONS


Collected within the Fiscal Year of the Lev~ Collections in

Percentage Subsequent Amount of Lev~ Years

$ 28,917,139 97.14% $ 135,757

29,648,412 97.32% 813,515

32,025,753 95.50% 836,172

34,383,392 98.76% 263,571

35,152,928 95.14% 1,108,434

36,290,704 95.30% 1,209,220

35,476,359 94.04% 1,088,812

35,589,870 94.58% 1,391,006

34,683,337 96.41% 1,099,465

35,217,538 97.68%

51

Table9

Total Collections to Date Percentage

Amount of Levy

$ 29,052,896 97.60%

30,461,927 99.99%

32,861,925 98.00%

34,646,963 99.52%

36,261,362 98.14%

37,499,924 98.48%

36,565,171 96.93%

36,980,876 98.27%

35,782,802 99.46%

35,217,538 97.68%

Table 10


Mid-Continent Public Library Ratios of Outstanding Debt by Type

Last Ten Fiscal Years

Total Fiscal Certificates of Capital Primary Per Year Participation Leases Government Capita (1)

2003-2004 $ - $ - $ 0.00 2004-2005 0.00 2005-2006 0.00 2006-2007 10,000,000 10,000,000 14.96 2007-2008 9,155,000 572,684 9,727,684 14.55 2008-2009 8,275,000 352,145 8,627,145 12.91 2009-2010 7,365,000 165,900 7,530,900 11.27 2010-2011 6,425,000 730,074 7,155,074 10.70 2011-2012 5,450,000 604,663 6,054,663 7.94 2012-2013 4,440,000 312,155 4,752,155 6.23

(1) Population data can be found in the Miscellaneous Statistical Data

52



Table 11

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of June 30, 2013

Estimated Estimated Share Outstanding Percentage of Overlapping

Jurisdiction Debt Applicable {1) Debt

Direct Debt: Library District, paybale from taxes $ 4,752,155 100.00% $ 4,752,155

Overlapping Debt (2): Counties:

Clay 8,915,182 100.00% 8,915,182 Jackson 533,684,416 79.00% 421 ,610,689 Platte 59,495,312 100.00% 59,495,312

602,094,910 490,021 '183

(1) Percentage based on the taxing entity's assessed property values within the Library district.

(2) School districts, cities, and other overlapping districts are not included, since their numbers are irrelavent to the circumstances of the Library.

53


Mid-Continent Public Library PRINCIPAL Employers

Table 12

FOR FISCAL YEAR ENDING 2013 AND TEN YEARS AGO

2013 (1) 2004 (2) Percentage of Percentage of

Local Total District Local Total District Em~lo;ters Em~lo;tees Rank Em~lo;tment {3) Em~lo;tees Rank Em~lo;tment {3)

HCA Midwest Health System 8,632 1 1.83% Saint Luke's Health System 6,891 2 1.46% General Motors 4,100 3 0.87% Ford Motors 4,000 4 0.85% Carondelet Health 3,150 5 0.67% ATK Small Caliber Systems 3,000 6 0.63% Honeywell 2,600 7 0.55% Lee's Summit School District 2,461 8 0.52% Burns & McDonnell 2,290 9 0.48% Blue Springs School District 1,936 10 0.41%

Total 39,060 8.26%

(1) Source: Missouri Economic Research and Information Center and Kansas City Business Journal

(2) Information for 2004 is not available

(3) The total district employment covers the entire county of Clay, Jackson, and Platte.

54

Table 13


Known As


Miscellaneous Demographic Data

Last Ten Fiscal Years

Number of Number of Full Time Number of Volumes Materials Circulated Registered

Fiscal Year Eguivalents Owned (1) Borrowers POf!Uiation {2)

2003-2004 546.6 3,329,842 7,676,097 475,001 668,428

2004-2005 544.4 3,448,146 8,003,080 415,615 668,428

2005-2006 551.6 3,503,464 8,320,986 463,700 668,428

2006-2007 568.6 3,537,916 8,860,919 448,727 668,428

2007-2008 592.2 3,435,518 8,260,899 462,579 668,428

2008-2009 589.2 3,565,744 9,182,417 466,344 668,428

2009-2010 601.6 3,419,516 9,455,412 481,050 668,428

2010-2011 600.0 3,419,516 9,060,906 496,205 668,428

2011-2012 605.5 3,402,625 9,305,242 545,980 762,446

2012-2013 580.0 3,482,436 9,796,884 497,365 762,446

(1) Effective July 1, 2007, the number of materials circulated will exclude those materials checked out by the staff and used in-house. (2) Based on 2000 and 2010 U.S. census

55

Table 14


Known As


Miscellaneous Statistical Data

Schedule of Service Locations

June 30, 2013

Owned (0) Open Hours Branch Libraries Address Leased (L) Square Feet per Week

Antioch 6060 N. Chestnut 0 22,783 65 Gladstone, MO 64119

Blue Ridge 9253 Blue Ridge Blvd 0 21,280 65 Kansas City, MO 64138

Blue Springs North 850 NW Hunter Dr. 0 15,204 65 Blue Springs, MO 64015

Blue Springs South 2220 S 7 Highway 0 17,896 65 Blue Springs, MO 64014

Boardwalk 8656 N Ambassador Dr. 0 14,961 65 Kansas City, MO 64154

Buckner 19 E Jefferson 0 5,518 59 Buckner, MO 64016

Camden Point 401 Hardesty St 0 3,080 56 Camden Point, MO 64018

Claycomo 309 NE 69 Highway 0 9,733 59 Claycomo, MO 64119

Colbern Road 1000 NE Col bern Road 0 15,204 65 Lee's Summit, MO 64086

Dearborn 206 Maple Leaf Ave 0 3,080 56 Dearborn, MO 64439

Edgerton 404 Frank St 0 3,013 56 Edgerton, MO 64444

Excelsior Springs 1460 Kearney Road 0 10,133 65 Excelsior Springs, MO 64024

Grain Valley 110 Front St. 0 4,200 59 Grain Valley, MO 64029

Grandview 12930 Booth Ln 0 12,744 65 Grandview, MO 64030

Kearney 1 00 S Platte-Clay Way 0 15,000 65 Kearney, MO 64060

Lee's Summit 150 NW Oldham Parkway 0 17,500 65 Lee's Summit, MO 64081

Liberty 1 000 Kent St. 0 17,300 65 Liberty, MO 64068

Lone Jack 211 N Bynum Road 0 7,500 59 Lone Jack, MO

Midwest Genealogy Center 3440 S. Lee's Summit 0 52,000 69 Independence, MO 64055

North Independence 317 W 24 Highway 0 33,770 65 Independence, MO 64050

(continued)

56


Known As


Miscellaneous Statistical Data

Schedule of Service Locations

June 30, 2013

Owned (0) Open Hours Branch Libraries Address Leased {L) Square Feet per Week

North Oak 8700 N Oak Street Trafficway 0 15,580 65 Kansas City, MO 64155

Oak Grove 2320 S. Broadway 0 7,000 59 Oak Grove, MO 64075

Parkville 8815 Tomn Watson Parkway 0 17,664 65 Parkville, MO 64152

Platte City 2702 Prairie View Road 0 15,638 59 Platte City, MO 64079

Raytown 6131 Raytown Road 0 22,910 65 Raytown, MO 64133

Red Bridge 11140 Locus 0 12,314 65 Kansas City, MO 64131

Riverside 2700 NW Vivion Road 0 15,112 59 Riverside, MO 64150

Smithville 120 Richardson St 0 15,000 65 Smithville, MO 64089

South Independence 13700 E 35th Street 0 17,887 65 Independence, MO 64055

Weston 18204 Library Drive 0 7,244 59 Weston, MO 64098

Woodneath Library Center 8900 NE Flintlock Road 0 35,000 65 Kansas City, MO 64157

Library-to-go 1 Hillcrest Community Center L 150 76 10401 Hillcrest Road Kansas City, MO 64134

Library-to-go 2 Marlborough Community Center L 150 47 8200 Paseo Blvd. Kansas City MO 64131

Library-to-go 3 Platte County Resource Center L N/A 45 11724 NW Plaza Circle, #200 Kansas City MO 64153

Library-to-go 4 Kansas City North Community Center L N/A 59 3930 NE Antioch Road Kansas City, MO 64117

57

Documents

Comprehensive Annual Financial Report · 20 cents per 100 dollar valuation. Platte County Public Library District, the first county library district in Missouri, was ... The Library