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COMPREHENSIVE ANNUAL FINANCIAL REPORT

CITY OF MISSION, KANSAS

Year Ended December 31, 2012

Prepared by the Finance and Administration Department

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CITY OF MISSION, KANSAS

Comprehensive Annual Financial Report Year ended December 31, 2012

TABLE OF CONTENTS

Page INTRODUCTORY SECTION

Letter of Transmittal i - iv

Organizational Chart v - vi

Principal Officials vii

2011 Certificate of Achievement for Excellence in Financial Reporting - Government Finance Officers Association viii

FINANCIAL SECTION Independent Auditor’s Report on the Basic Financial Statements 1 - 2

Management’s Discussion and Analysis 3 - 8

Basic Financial Statements:

Government-wide Financial Statements

Statement of Net Position 9

Statement of Activities 10

Fund Financial Statements

Balance Sheet - Governmental Funds 11

Reconciliation of the Total Governmental Fund Balances to Net Position of Governmental Activities 12

Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 13

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures And Changes in Fund Balances with the Government Wide Statement of Activities 14

Statement of Revenues, Expenditures, and Changes in Fund Balances - Actual and Budget

General Fund 15

Special Highway Fund 16

Storm Drain Fund 17

Statement of Assets and Liabilities 18

Notes to the Financial Statements 19 - 35

CITY OF MISSION, KANSAS

Comprehensive Annual Financial Report Year ended December 31, 2012

TABLE OF CONTENTS - CONTINUED Page

Required Supplementary Information

Net Other Post Employment Benefits 36

Combining Statements and Individual Fund Schedules

Combining Statements - Nonmajor Funds

Fund Descriptions 37

Combining Balance Sheet - Nonmajor Special Revenue Funds 38

Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds 39

Individual Fund Schedules of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget:

Special Alcohol Fund 40 Special Parks and Recreation Fund 41 General Obligation Fund 42 Sales Tax Bond Fund 43

Fiduciary Fund Descriptions - Agency Funds 44

Combining Balance Sheet - Agency Funds 45

Combining Statement of Changes in Assets and Liabilities - Agency Funds 46

STATISTICAL SECTION

Table

Net Position by Component - Last Ten Years 1 47

Change in Net Position - Last Ten Years 2 48

Fund Balances, Governmental Funds - Last Ten Years 3 49

Changes in Fund Balances of Governmental Funds - Last Ten Years 4 50

General Government Tax Revenues by Source - Last Ten Years 5 51

Local Sales Tax Collections - Last Ten Years 6 52

Assessed and Estimated Actual Value of Taxable Property - Last Ten Years 7 53

CITY OF MISSION, KANSAS

Comprehensive Annual Financial Report Year ended December 31, 2012

TABLE OF CONTENTS - CONTINUED

Table Page

Property Tax Rates per $1,000 of Assessed Valuation Direct and Overlapping Governments - Last Ten Years 8 54

Principal Taxpayers 9 55

Property Tax Levies and Collections - Last Ten Years 10 56

Outstanding Debt by Type - Last Ten Years 11 57

Ratio of Net General Obligation Bonded Debt to Assessed Value And Net General Obligation Debt per Capita - Last Ten Years 12 58

Direct and Overlapping Governmental Activities Debt 13 59

Computation of Legal Debt Margin - Last Ten Years 14 60

Demographic Statistics - Last Ten Years 15 61

Principal Employers 16 62

Operating Indicators by Function/Program 17 63

Full Time City Employees by Function/Program - Last Ten Years 18 64

Capital Asset Statistics by Function/Program - Last Ten Years 19 65

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INTRODUCTORY SECTION

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June 6, 2013

To the Citizens of the City of Mission, Kansas

The City of Mission is pleased to submit the comprehensive annual financial report for the fiscal year ending December 31, 2012. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included.

This report includes all funds of the City. The City provides a range of services including police protection, trash services, the construction and maintenance of streets and infrastructure, and recreational and cultural activities. There are no other entities over which the City exercises financial accountability. Educational, fire protection, sanitary sewer and water services are provided by separate entities.

Management’s discussion and analysis immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. Management’s discussion and analysis complements this letter of transmittal and should be read in conjunction with it.

ECONOMIC CONDITION AND OUTLOOK

The City is located in the northeast corner of Johnson County and lies along a major transportation corridor, making it accessible to the entire metropolitan area.

The City, incorporated in 1951, operates as a second-class city with a mayor-council form of government. The governing body is made up of eight council members, four of whom are elected in even numbered years to serve four-year terms. The Mayor is elected to a four-year term and serves as the chief executive officer of the City.

The City's population is 9,323 with a current annual budget of $21,403,331. The City covers 2.87 square miles and is 95% developed. The daytime population of the City increases to nearly 30,000, as a result of people who come into the City to work, conduct business, and shop. The Johnson Drive corridor is the cornerstone of Mission’s commercial area, supported by retail hubs located at the City’s east and west entrances. Other businesses within the City include health care facilities, laboratories, Shawnee Mission Main Post Office, Johnson County offices, State of Kansas Drivers License Bureau, a number of restaurants and fast food establishments, grocery chains and a variety of small retail operations.

The City has traditionally been viewed as a bedroom community, offering convenient services, a small town atmosphere, comfortable living conditions, a family environment, and a variety of outstanding residential neighborhoods. Residents enjoy an excellent standard of living as a result of the active community spirit, an award-winning school system, low crime rates and a low mill rate when compared to other cities throughout the state. The governing body proactively addresses quality of life issues to ensure that the current standard of living is not only maintained, but ultimately enhanced.

The City Council works to ensure that the needs of existing businesses are met, while simultaneously dedicating resources to attract new businesses. The sales tax revenues generated by the business community are vital to the City’s financial stability. The mill levy remains one of the lowest in Johnson County and in the State of Kansas. Future financial planning efforts continue to explore revenue diversification and policies to protect cash reserves during an economy that is slow to recover.

MAJOR CITY INITIATIVES

The City continued to facilitate and encourage redevelopment and investment throughout the community in 2012, using our comprehensive master plans to attract and secure development that is consistent with the community’s design guidelines and standards. At the western-most edge of the City, Phase I of the Mission Crossing development was completed. Formerly the headquarters and manufacturing plant for Herff Jones, Inc.'s national operations, this 6.2 acre site with desirable Metcalf frontage, includes several new restaurants (Chik-fil-A, Culver's, Subway and Freebirds) and other small retail. The project is comprised of four stand-alone buildings with approximately 20,000 square feet of commercial development. Phase II will include a 140,000 square foot, multistory independent senior living development which is anticipated to begin construction in 2013.

In December 2011, Mission voters approved a dedicated ¼-cent sales tax to be used for street repair and maintenance. The sales tax became effective in April 2012, and will provide an important revenue stream for continued street and transportation network investments over the next ten years. Over the next 2-3 years, the City’s focus will be on completing the design and reconstruction of Martway and Johnson Drive.

Progress on the transit improvements within the Metcalf/Shawnee Mission Parkway corridor was significant in 2012. With $10.7 million of a $50 million regional TIGER grant dedicated to this important urban corridor network identified in the Smart Moves transit vision, Mission is seeing many benefits, including:

! Pedestrian and street rehabilitation along Martway ! Two enhanced transit station pairs at Martway & Broadmoor and Martway & Lamar ! Transit Center connecting Johnson Drive and Martway

The City continues to promote organizational efficiency and effectiveness through technology upgrades, management of a classification and compensation system, and on-going evaluation of employee benefits. A continued emphasis on workforce training and development provides employee’s with the necessary skills to deliver quality services to the citizens of Mission.

iii

FUTURE INITIATIVES

The Gateway project, the 900,000+ sq. ft. mixed-use development at the former Mission Mall site, received a great deal of attention in 2012. Dormant since the fall of 2008, a revised site plan was presented and approved and a comprehensive public financing package was developed for the project. With an estimated value of more than $200 million, the project will serve as an important economic engine for Northeast Johnson County.

The City continues to aggressively seek out new and diverse funding sources to support redevelopment efforts throughout our community. Our work focuses on ensuring redevelopment that results in high quality, sustainable projects benefiting not only Mission but the entire region. Mission supports efforts for long-range, comprehensive capital infrastructure planning and budgeting; refining strategies for the on-going maintenance, repair and replacement of our important infrastructure assets.

The City continues to evaluate Parks & Recreation services to develop sustainable operating plans for the Community Center, the municipal swimming pool, and the 30+ acres of parks and recreational facilities maintained for the benefit of Mission residents. Planning and development of trails which link Mission to the rest of the metropolitan area will remain a priority. Voters approved a 3/8-cent parks and recreation sales tax in November 2012. A portion of these funds will be used to construct a new outdoor aquatic facility.

The police department remains committed to improving the level of service to the community. Continued emphasis on traffic safety and enforcement contributes to the overall safety of both residents and visitors alike. The Mission Police Department will also maintain its focus on training, keeping personnel abreast of a variety of professional trends and development opportunities.

The Mission Convention and Visitors Bureau (MCVB) assists and enhances existing businesses through an improvement grant program and a number of community festivals and events. The MCVB’s specialty publication, with a distribution of approximately 12,500, continues to be popular featuring and promoting local businesses and the Mission community.

FINANCIAL INFORMATION

City management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of the control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

Budgetary Controls

The City maintains various budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City’s governing body. Activities of the General Fund, Special Revenue Funds, and Debt Service Funds are included in the annual appropriated budget. The legal level of budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) is at the fund level. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts do not lapse at year-end. However, unencumbered appropriations do lapse. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management.

OTHER INFORMATION

Independent Audit

Kansas statutes require an annual audit of the City’s financial statements. The audit for 2012 was conducted by Mize Houser & Company P.A., Certified Public Accountants and their report on the financial statements is included in the financial section of this report.

Reporting Achievement

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report (CAFR) for the fiscal year ending December 31, 2011. This was the nineteenth consecutive year the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

ACKNOWLEDGEMENTS

The preparation of this comprehensive annual financial report was made possible by the dedicated services of the staff of the Finance and Administration Department. Our sincere appreciation is extended to all members of the staff, whose efforts made this report possible.

Respectfully submitted,

Laura Smith Assistant City Administrator/Finance Director

vii

CITY OF MISSION, KANSAS

PRINCIPAL OFFICIALS - 2012

Mayor and City Council

Honorable Laura L. McConwell, Mayor Honorable Pat Quinn - Ward 1

Honorable Lawrence Andre - Ward 1 Honorable Amy Miller - Ward 2

Honorable Will Vandenberg - Ward 2 Honorable Jennifer Cowdry - Ward 3

Honorable Debbie Kring - Ward 3 Honorable David Shepard - Ward 4 Honorable Suzanne Gibbs - Ward 4

Administration

City Administrator: Mike Scanlon City Clerk: Martha Sumrall

Assistant City Administrator/Finance Director: Laura Smith Treasurer: Donald C. Chamblin Municipal Judge: Keith E. Drill Police Chief: John Simmons

Community Development Director: Martin Rivarola Parks and Recreation Director: Christy Humerickhouse

Attorney

David K. Martin

viii

FINANCIAL SECTION

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INDEPENDENT AUDITOR'S REPORT

Mayor and City Council City of Mission, Kansas

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 City of Mission, Kansas, as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the 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 misstatement, 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 “Kansas Municipal Accounting and Audit Guide.” These 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 on 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 opinion.

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 City of Mission, Kansas, as of December 31, 2012, and the respective changes in financial position, thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3 through 8 and the schedule of funding progress on page 36 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 City’s financial statements as a whole. The introductory section, combining and individual nonmajor fund financial statements and schedules, and statistical tables as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying account and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the 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.

June 6, 2013

CITY OF MISSION, KANSAS

MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2012

Unaudited

Our discussion and analysis of the City of Mission, Kansas financial performance provides an overview of the City’s financial activities for the fiscal year ended December 31, 2012. This narrative should be read in conjunction with the City’s letter of transmittal, which begins on page i.

Financial Highlights

! The Government-wide net position totaled $30.2 million at the end of the current fiscal year. ! Total capital assets, net of accumulated depreciation at December 31, 2012 totaled $57.8 million. ! During the year ended December 31, 2012, the City’s total revenues (which include charges for services,

local taxes and state and federal aid) exceeded total expenses by $1 million. ! The City’s total indebtedness increased by $1.7 million, primarily due to the issuance of general obligation

bonds. ! The City’s net capital assets decreased $.2 million in the current fiscal year.

Using This Financial Report

This annual report consists of two distinct series of financial statements: government-wide and funds. In addition, the annual report includes budgetary-basis financial statement comparisons, in accordance with the State of Kansas cash basis and budget laws.

The government-wide statements are designed to provide information about the City’s activities as a whole and provide a longer-term view of the City’s finances. The fund financial statements tell how the City’s services for the governmental activities were financed in the short term as well as what remains for future spending. Fund financial statements report the City’s operations in greater detail than the government-wide statements by providing information about the City’s most significant funds. In addition, combining statements included in the supplemental information show detail of all other governmental funds. The City also holds fiduciary funds on behalf of various parties. These funds are reported in a separate statement.

Reporting on the City as a Whole (Government Wide)

Statement of Net Position and the Statement of Activities

The view of the City as a whole looks at all financial transactions and asks the question, “Are we in a better financial position as a result of the current year’s financial activities?” The Statement of Net Position and the Statement of Activities provide the basis for answering this question. The statements include all assets and all liabilities using the accrual basis of accounting, which is similar to the accounting method used by most private-sector companies. This basis of accounting takes into account all of the current year’s revenues and expenses, regardless of when cash is received or paid.

These two statements report the City’s Net Position and current year change in Net Position. The change in net position is important because it tells the reader whether the City, as a whole, has improved or diminished its financial position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. Causes of these changes may be the result of many factors, some financial, some not. Non-financial factors include the City’s property tax base, state mandates, and the financial condition of the State of Kansas general fund.

CITY OF MISSION, KANSAS

MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2012

Unaudited

In the Statement of Net Position and the Statement of Activities, the City has one kind of activity:

Governmental Activities - Most of the City’s programs and services are reported here including general government, public safety, public works and culture and recreation.

Reporting the City’s Most Significant Funds (Fund Financial Statements)

Fund financial statements provide detailed information about the City’s major funds. The City uses many funds to account for a multitude of financial transactions. The main fund financial statements focus on the City’s most significant funds. Combining fund balance sheets and statements of revenues, expenditures and changes in fund balances provides detailed information about all of the City’s non-major governmental funds.

Governmental Funds - Most of the City’s activities are reported in the governmental funds, which focus on how money flows into and out of the funds and how balances left over at fiscal year end are available to be spent in future periods. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general operations and the basic services it provides. Governmental fund information helps the reader to decide whether there are more or fewer financial resources that can be spent in the near term to finance the City’s programs. Major differences between the City’s governmental activities as reported in the Statement of Net Position and the Statement of Activities and its governmental funds are reconciled in the Governmental Funds financial statements.

The City as a Whole

Government-Wide Position

The Statement of Net Position provides the financial position of the City as a whole. The overall financial position of the City improved by 8.0% in 2012. The following is a summary of the City’s Statement of Net Position as of December 31, 2012 and 2011:

2012 2011 Current assets 8,928,672$ 6,661,187$ Noncurrent assets 506,433 - Net capital assets 57,767,340 57,965,903

Total assets 67,202,445$ 64,627,090$

Current liabilities 3,640,998$ 5,075,719$ Noncurrent liabilities 33,389,606 31,634,622

Total liabilities 37,030,604$ 36,710,341$

Net Position: Invested in capital assets, net of related debt 26,771,829$ 25,521,486$ Restricted for: Debt Service 63,337 550,988 Unrestricted 3,336,675 1,844,275

Total net position 30,171,841$ 27,916,749$

Governmental Activities

City of Mission Condensed Statement of Net Position

CITY OF MISSION, KANSAS

MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2012

Unaudited

The assets of the City are classified as current assets and capital assets. Cash and investments and accounts receivable are the largest current assets. These are assets that are available to provide resources for the near-term operations of the City. Capital assets are used in the operations of the City. These assets include land, buildings, equipment and vehicles, and infrastructure.

Current and non-current liabilities are classified based on anticipated liquidation either in the near-term or in the future. Current liabilities include accounts payable, accrued liabilities, interest payable and the current portion of long-term obligations.

The City has $35.5 million in long-term debt, consisting of general obligation bonds, capital improvement bonds, and special assessment bonds payable, of which $2.5 million is due within the next fiscal year.

The City had total assets at December 31, 2012, totaling $67.2 million. The total assets of the City exceeded the total liabilities by $30.2 million. Net position invested in capital assets; net of related debt, totaled $26.8 million, restricted net position totaled $63,337 and unrestricted net position totaled $3.3 million.

Government-Wide Activities

The following is a condensed statement of the City’s change in net position for the year ended December 31, 2012. Major items of program revenues, grants and general revenues are detailed. Government-wide activities increased the net position of the City by approximately $1 million for the year ended December 31, 2012. The increase can be attributed to a reduction in program expenses. A reconciliation of the total change in fund balances for the governmental funds to the Statement of Activities is located at page 14 of the basic financial statements. Major differences in the Statement of Activities and changes in the fund balances of governmental funds as expenditures in the funds statements include the repayment of long-term debt of $2.5 million which is treated as expenditures in the funds statements, but is treated as a reduction of long term debt in the Government wide financial statements. Also, the bond and note proceeds of $4.4 million are treated as a revenue source in the fund statements, but an increase of long term debt in the Government wide financial statements.

CITY OF MISSION, KANSAS

MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2012

Unaudited

In addition, the capital outlays of $1.6 million are treated as expenditures in the fund statements, but are treated as an increase in capital assets in the Government wide financial statements.

2012 2011 Revenues: Program revenues: Charges for services 6,600,864$ 6,414,636$ Operating grants 548,344 2,354,879

General revenues: Property taxes 1,394,756 1,469,907 Sales tax 4,040,247 4,057,445 Motor fuel tax 125,721 159,717 Franchise tax 968,696 1,014,732 Investment earnings 4,227 2,348 Miscellaneous 399,104 159,835

Total revenues 14,081,959 15,633,499

Program expenses: General government 2,376,085 2,964,860 Public safety 3,725,913 3,791,275 Public works 3,306,786 3,332,773 Culture and recreation 2,635,617 2,607,459 Interest on long term debt 1,055,632 974,679

Total expenses 13,100,033 13,671,046

Increase [decrease] in net position 981,926$ 1,962,453$

Governmental Activities

City of Mission Condensed Statement of Changes in Net Position For the Year Ended December 31, 2012 and 2011

Financial Analysis of the City’s Funds

The City uses fund accounting to ensure and demonstrate compliance with state and federal finance related legal requirements. These funds are accounted for on the modified accrual basis of accounting.

The governmental funds of the City provide information on near-term inflows, outflows and balances of spendable resources. Unreserved fund balances, in particular, measures the City’s net resources available for spending at the end of the City’s fiscal year.

Total fund balances at December 31, 2012 for the governmental funds totaled $6.3 million. Total unassigned fund balances at December 31, 2012 totaled $1.3 million, of which all was attributable to the General Fund.

CITY OF MISSION, KANSAS

MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2012

Unaudited

The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the general fund was $1.3 million. The increase in the General Fund’s fund balance was $4,647.

The Special Highway Fund is used to account for monies sent quarterly from the State Treasurer’s office which are the Special City and County Highway Fund distributed and computed in compliance with K.S.A. 79-3425C. The ending fund balance of the Special Highway Fund was $34,099 at December 31, 2012. The decrease in the Special Highway Fund’s fund balance was $26,667. The decrease was due to the continuation of a comprehensive residential street maintenance program which included curb and gutter replacement, seal applications and mill and overlay projects throughout the City. This program was started in 2011.

The Storm Drain Fund is used to account for storm water charges received based on an equivalent residential unit (ERU) to be used for storm water improvements city wide. The ending fund balance was $39,206 at December 31, 2012. The decrease in the Storm Drain Fund’s fund balance was $265,996. The decrease can be attributed to funds obligated for debt service on storm water projects.

The Sales Tax Fund is used to account for revenues received from a one-quarter of one percent sales tax pledged to retire the Series 2002A General Obligation Bonds issued to expand the City’s community center. The ending fund balance was $60,550 at December 31, 2012. The decrease in the fund balance was $.5 million. The fund decreased in connection with the final debt service payment for the 2002A bonds. The sales tax was retired fifteen months ahead of the originally anticipated approved timeframe.

The General Obligation Fund is used to account for resources to be used for the payment of principal, interest and related costs of the general obligation bonds other than the sales tax bonds, as well as certain other long-term obligations of the City. The ending fund balance was $2,787 at December 31, 2012. The decrease in the General Obligation Fund’s fund balance was $3,610. The decrease in the fund balance can be attributed to an overall decline in property valuations resulting in the collection of less annual property tax revenues than previous years.

The Transportation Utility Fund is used to account for transportation utility charges received based on an established land-use formula per parcel to fund street and other transportation related improvements. The ending fund balance was $.3 million at December 31, 2012. The increase in the Transportation Utility Fund was $.2 million. The increase in the fund can be attributed to anticipated carry-over for street projects each year and a lump sum payment from the City of Prairie Village for the Nall Avenue Project.

The Capital Improvement Fund is used to account for resources used to construct and maintain infrastructure city- wide. The ending fund balance was approximately $3.9 million at December 31, 2012. The increase in the Capital Improvement Fund’s fund balance was $3.1 million. The increase in the fund balance can be attributed to reimbursements received for various street projects and bond proceeds for the Nall Avenue, Martway and Johnson Drive projects

General Fund Budgeting Highlights

The City’s budgets are prepared in accordance with Kansas law and are based primarily on the basis of cash receipts, disbursements, and encumbrances. The most significant budgeted fund is the General Fund.

The City’s final General Fund budget was $10,314,131, the same as the original published budget. The revenues were more than budgetary estimates by $1.1 million and the expenditures were less than budgetary estimates by $.2 million.

Sales tax revenues were more than budgeted figures primarily as a result of conservative estimates. Revenues in the police fines and charges for services (court fees) categories were less than budgeted figures due to staffing vacancies in the police department and a decrease in traffic citations processed.

CITY OF MISSION, KANSAS

MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2012

Unaudited

Overall expenditures in the General Fund were below budgeted figures as a result of specific budget control and voluntary line item reductions by each Department.

Capital Assets and Debt Administration

The City’s investment in capital assets for its governmental activities totaled $57.8 million (net of accumulated depreciation) as of December 31, 2012.

The major capital asset events during the current fiscal year included the following:

Martway and Johnson Drive Design totaling $573,775 Residential Street Maintenance Program totaling $427,998

Additional information on the City’s capital assets can be found in Notes I and III of the financial statements.

At December 31, 2012, the City had total debt outstanding of $35.5 million, backed by the full faith and credit of the City. Total long-term debt increased for the fiscal year ended December 31, 2012, in the amount of $1.7 million. This was a result of the issuance of general obligation bonds.

Additional information on the City’s general long term debt can be found in Note III to the financial statements.

Contacting the City

This financial report is designed to provide a general overview of the City’s finances. If you have questions about this report or need additional financial information, contact the City’s Finance and Administration Department at 6090 Woodson, Mission, Kansas 66202.

Total Governmental

Assets and Deferred Outflows of Resources Activities Assets: Current assets: Cash and investments 6,299,740$ Restricted cash and investments 38,189 Receivables 2,590,743 Total current assets 8,928,672

Capital assets: Capital assets not being depreciated: Land 11,130,494 Construction in progress 1,348,427 Capital assets being depreciated 57,164,627 Less: accumulated depreciation 11,876,208 Total net capital assets 57,767,340

Total assets 66,696,012

Deferred outflows of resources: Deferred charge on bond issuance 506,433

Total deferred outflows of resources 506,433

Total assets and deferred outflows of resources 67,202,445$

Liabilities: Current liabilities: Accounts payable 142,493$ Accrued liabilities 229,483 Interest payable 278,539 Municipal court bonds payable 38,189 Unearned revenue 167,185 Current portion of compensated absences 241,914 Current portion of capital leases payable 117,525 Current portion of loans payable 4,096 Current portion of general obligation bonds payable 2,421,574 Total current liabilities (payable from current assets) 3,640,998

Noncurrent liabilities: Compensated absences 249,043 Net other post employment benefits 211,453 Temporary note payable 485,000 Capital lease payable 147,929 Loans payable 91,791 General obligation bonds payable 32,204,390 Total noncurrent liabilities 33,389,606

Total liabilities 37,030,604$

Net Position Invested in capital assets, net of related debt 26,771,829$ Restricted for: Debt service 63,337 Unrestricted 3,336,675

Total net position 30,171,841$

CITY OF MISSION, KANSAS STATEMENT OF NET POSITION

December 31, 2012

The notes to the financial statements are an integral part of this statement. 9

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Net [Expenses] Revenue and Changes in

in Net Assets Operating Capital Total

Charges for Grants and Grants and Governmental Expenses Services Contributions Contributions Activities

Governmental activities:

General government 2,376,085$ 494,255$ -$ -$ [1,881,830]$ Public safety 3,725,913 1,868,248 55,474 - [1,802,191] Public works 3,306,786 2,461,655 492,870 - [352,261] Culture and recreation 2,635,617 1,776,706 - - [858,911] Interest on long-term debt 1,055,632 - - - [1,055,632]

Total governmental activities 13,100,033$ 6,600,864$ 548,344$ -$ [5,950,825]

General Revenues: Property taxes levied for: General purposes 1,249,570 Debt service 145,186 Sales tax 4,040,247 Motor fuel tax 125,721 Franchise tax 968,696 Investments earnings 4,227 Miscellaneous 399,104

Total general revenues 6,932,751

Change in net position 981,926

Net position - beginning 27,916,749

Prior period adjustment 1,273,166

Net position - beginning, restated 29,189,915

Net position - ending 30,171,841$

STATEMENT OF ACTIVITIES CITY OF MISSION, KANSAS

For the Year Ended December 31, 2012

Program Revenues

The notes to the financial statements are an integral part of this statement. 10

Special Storm Sales General Highway Drain Tax

ASSETS Cash and investments 1,282,597$ 34,099$ 39,206$ 60,550$ Restricted cash and investments 38,189 - - - Receivables

Taxes 1,624,002 - - - Intergovernmental 89 - - - Other 38,466 - - -

Total assets 2,983,343$ 34,099$ 39,206$ 60,550$

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 26,742$ -$ -$ -$ Accrued liabilities 229,483 - - - Payable from restricted assets Municipal court bonds 38,189 - - - Unearned revenue 165,924 - - - Total liabilities 460,338 - - -

Deferred inflows of resources Unavailable revenue - property taxes 1,182,431 - - - Total deferred inflows of resources 1,182,431 - - -

Fund balance: Restricted - 34,099 39,206 60,550 Committed - - - - Unassigned 1,340,574 - - -

Total fund balance 1,340,574 34,099 39,206 60,550

Total liabilities and fund balances 2,983,343$ 34,099$ 39,206$ 60,550$

CITY OF MISSION, KANSAS BALANCE SHEET

GOVERNMENTAL FUNDS December 31, 2012

Other Total General Transportation Capital Governmental Governmental

Obligation Utility Improvement Funds Funds

2,787$ 327,366 3,991,794$ 561,341$ 6,299,740$ - - - - 38,189

119,706 - - 122,832 1,866,540 - - - - 89 - - - - 38,466

122,493$ 327,366$ 3,991,794$ 684,173$ 8,243,024$

-$ -$ 65,303$ 50,448$ 142,493$ - - - - 229,483

- - - - 38,189 - - - 1,261 167,185 - - 65,303 51,709 577,350

119,706 - - 75,972 1,378,109 119,706 - - 75,972 1,378,109

2,787 327,366 3,926,491 599,011 4,989,510 - - 5,610 5,610 - - - [48,129] 1,292,445

2,787 327,366 3,926,491 556,492 6,287,565

122,493$ 327,366$ 3,991,794$ 684,173$ 8,243,024$

11 The notes to the financial statements are an integral part of this statement.

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Total Governmental Fund Balances 6,287,565$

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

Bond issuance costs are shown as current year expenditures in the funds.

Bond issuance costs 506,433

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds

The cost of capital assets is 69,643,548 Accumulated depreciation is 11,876,208 57,767,340

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 2,063,757

Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long term liabilities at year end consist of:

General obligation bonds payable 34,625,964 Temporary note payable 485,000 Capital leases payable 265,454 Loans payable 95,887 Interest payable 278,539 Net other post employment benefits 211,453 Compensated absences payable 490,957 [36,453,254]

Net Position of Governmental Activities 30,171,841$

CITY OF MISSION, KANSAS RECONCILIATION OF THE TOTAL GOVERNMENTAL FUND BALANCES TO

NET POSITION OF GOVERNMENTAL ACTIVITIES December 31, 2012

The notes to the financial statements are an integral part of this statement. 12

Special Storm Sales General Highway Drain Tax

REVENUES: Taxes 5,940,011$ -$ 2,506$ -$ Special assessments - - - - Intergovernmental 55,474 243,521 - - Licenses and permits 134,743 - - - Charges for services 1,777,455 - 1,698,037 - Fines and fees 1,868,248 - - - Use of money and property 1,506 - 154 1,409 Miscellaneous 313,186 - - -

Total revenues 10,090,623 243,521 1,700,697 1,409

EXPENDITURES: Current

General government 1,721,635 - - - Public safety 3,652,781 - - - Public works 1,693,881 270,188 84,808 - Culture and recreation 2,407,179 - - -

Capital outlay - - - - Debt service

Principal - - 1,070,000 475,000 Interest and other charges 5,500 - 811,885 10,450

Total expenditures 9,480,976 270,188 1,966,693 485,450

Excess [deficiency] of revenues over [under] expenditures 609,647 [26,667] [265,996] [484,041]

OTHER FINANCING SOURCES [USES] Transfers in - - - - Transfers out [605,000] - - - Issuance of debt - - - -

Total other financing sources [uses] [605,000] - - -

Net change in fund balances 4,647 [26,667] [265,996] [484,041]

Fund balance - Beginning of year 1,335,927 60,766 305,202 544,591

Fund balance - End of year 1,340,574$ 34,099$ 39,206$ 60,550$

CITY OF MISSION, KANSAS STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS

For the Year Ended December 31, 2012

Other Total General Transportation Capital Governmental Governmental

Obligation Utility Improvement Funds Funds

134,760$ 28,506$ -$ 465,356$ 6,571,139$ 10,426 - - - 10,426

- 122,789 - 126,560 548,344 - - - - 134,743 - 763,618 - 358,763 4,597,873 - - - - 1,868,248

14 108 1,036 - 4,227 - 10 103,619 11,558 428,373

145,200 915,031 104,655 962,237 14,163,373

- - - - 1,721,635 - - - - 3,652,781 - - - - 2,048,877 - - - - 2,407,179 - 211,132 1,241,655 791,459 2,244,246

140,000 400,000 365,000 - 2,450,000 8,810 94,046 213,053 - 1,143,744

148,810 705,178 1,819,708 791,459 15,668,462

[3,610] 209,853 [1,715,053] 170,778 [1,505,089]

- - 497,000 185,000 682,000 - - - [77,000] [682,000] - - 4,360,000 - 4,360,000

- - 4,857,000 108,000 4,360,000

[3,610] 209,853 3,141,947 278,778 2,854,911

6,397 117,513 784,544 277,714 3,432,654

2,787$ 327,366$ 3,926,491$ 556,492$ 6,287,565$

13 The notes to the financial statements are an integral part of this statement.

Total Net Change In Fund Balances - Governmental Funds 2,854,911$

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

Capital outlays to purchase or build assets are reported in governmental funds as expenditures. However, for governmental activities those costs are shown in the statement of net assets and allocated over their estimated useful lives as annual depreciation expenses in the statement of activities. This is the amount by which capital outlays exceeds depreciation in the period. Loss on sale of assets [6,792] Capital outlays 1,640,771 Depreciation expense [1,675,455] [41,476]

Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recorded as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. This is the amount by which interest decreased. 1,944

Some expenses reported in the statement of activities, such as compensated absences, do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. [39,793]

Proceeds of bonds is a revenue in the governmental funds, but it increases long-term liabilities in the statement of net assets and does not affect the statement of activities. [4,360,000]

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. [81,413]

Bond issuance costs are recorded as expenditures in the fund financial statements. However, for the statement of net assets, these costs are shown as assets and amortized over the life of the bonds. 51,886

Repayment of capital leases is an expenditure in the governmental funds, but it reduces long-term liabilities in the statement of net assets and does not affect the statement of activities. 141,890

Repayment of bond principal is an expenditure in the governmental funds, but it reduces long-term liabilities in the statement of net assets and does not affect the statement of activities. 2,453,977

Changes In Net Position of Governmental Activities 981,926$

CITY OF MISSION, KANSAS RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES WITH THE GOVERNMENT WIDE STATEMENT OF ACTIVITIES

For the Year Ended December 31, 2012

The notes to the financial statements are an integral part of this statement. 14

CITY OF MISSION, KANSAS

For the Year Ended December 31, 2012

Variance with Adjustments Final Budget

GAAP to Budgetary Budgetary Positive Basis Basis Basis Original Final [Negative]

Revenues Taxes 5,940,011$ -$ 5,940,011$ 4,934,818$ 4,934,818$ 1,005,193$ Intergovernmental 55,474 - 55,474 - - 55,474 Licenses and permits 134,743 - 134,743 150,000 150,000 [15,257] Charges for services 1,777,455 - 1,777,455 2,100,000 2,100,000 [322,545] Fines and forfeitures 1,868,248 - 1,868,248 1,668,000 1,668,000 200,248 Interest 1,506 - 1,506 7,500 7,500 [5,994] Other 313,186 - 313,186 175,000 175,000 138,186 Total revenues 10,090,623 - 10,090,623 9,035,318 9,035,318 1,055,305

General government Personal service 926,161 - 926,161 968,268 968,268 42,107 Contractual 738,605 - 738,605 687,168 687,168 [51,437] Commodities 49,677 - 49,677 51,200 51,200 1,523 Capital outlay 6,785 - 6,785 205,395 205,395 198,610 Miscellaneous 407 - 407 - - [407]

1,721,635 - 1,721,635 1,912,031 1,912,031 190,396 Public works and improvements Personal service 717,881 - 717,881 793,500 793,500 75,619 Contractual 833,725 - 833,725 899,200 899,200 65,475 Commodities 85,987 - 85,987 143,350 143,350 57,363 Capital outlay 54,705 - 54,705 - - [54,705] Miscellaneous 1,583 - 1,583 - - [1,583]

1,693,881 - 1,693,881 1,836,050 1,836,050 142,169 Public safety Personal service 2,928,038 - 2,928,038 2,919,200 2,919,200 [8,838] Contractual 365,924 - 365,924 408,550 408,550 42,626 Commodities 134,035 - 134,035 131,000 131,000 [3,035] Capital outlay 224,784 - 224,784 - - [224,784]

3,652,781 - 3,652,781 3,458,750 3,458,750 [194,031] Culture and recreation Personal service 1,393,670 - 1,393,670 1,466,900 1,466,900 73,230 Contractual 798,517 - 798,517 808,650 808,650 10,133 Commodities 147,205 - 147,205 161,500 161,500 14,295 Capital outlay 67,787 - 67,787 - - [67,787]

2,407,179 - 2,407,179 2,437,050 2,437,050 29,871 Debt service Interest and other charges 5,500 - 5,500 - - [5,500]

Total expenditures 9,480,976 - 9,480,976 9,643,881 9,643,881 162,905

Excess [deficiency] of revenues over [under] expenditures 609,647 - 609,647 [608,563] [608,563] 1,218,210

Other financing sources [uses] Transfers out [605,000] - [605,000] [670,250] [670,250] 65,250

Total other financing sources [uses] [605,000] - [605,000] [670,250] [670,250] 65,250

Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 4,647 - 4,647 [1,278,813]$ [1,278,813]$ 1,283,460$

Fund balance, January 1 1,335,927 - 1,335,927

Fund balance, December 31 1,340,574$ -$ 1,340,574$

GENERAL FUND

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET

Budgeted Amounts

The notes to the financial statements are an integral part of this statement. 15

Variance with Adjustments Final Budget

GAAP to Budgetary Budgetary Positive Basis Basis Basis Original Final [Negative]

Revenues Intergovernmental 243,521$ -$ 243,521$ 264,760$ 264,760$ [21,239]$

Total revenues 243,521 - 243,521 264,760 264,760 [21,239]

Expenditures Public works and improvements 270,188 - 270,188 270,294 270,294 106

Total expenditures 270,188 - 270,188 270,294 270,294 106

Excess [deficiency] of revenues over [under] expenditures [26,667] - [26,667] [5,534]$ [5,534]$ [21,133]$

Fund balance, January 1 60,766 - 60,766

Fund balance, December 31 34,099$ -$ 34,099$

CITY OF MISSION, KANSAS

SPECIAL HIGHWAY FUND

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET

For the Year Ended December 31, 2012

Budgeted Amounts

The notes to the financial statements are an integral part of this statement. 16

Variance with Adjustments Final Budget

GAAP to Budgetary Budgetary Positive Basis Basis Basis Original Final [Negative]

Revenues Taxes 2,506$ -$ 2,506$ -$ -$ 2,506$ Charges for services 1,698,037 - 1,698,037 1,690,500 1,690,500 7,537 Use of money and property 154 - 154 3,000 3,000 [2,846]

Total revenues 1,700,697 - 1,700,697 1,693,500 1,693,500 7,197

Expenditures Public works and improvements 84,808 - 84,808 1,326,965 1,326,965 1,242,157 Principal 1,070,000 - 1,070,000 - - [1,070,000] Interest and other charges 811,885 - 811,885 - - [811,885]

Total expenditures 1,966,693 - 1,966,693 1,326,965 1,326,965 [639,728]

Excess [deficiency] of revenues over [under] expenditures [265,996] - [265,996] 366,535 366,535 [632,531]

Other financing sources [uses] Transfers out - - - [650,000] [650,000] 650,000

Total other financing sources [uses] - - - [650,000] [650,000] 650,000

Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] [265,996] - [265,996] [283,465]$ [283,465]$ 17,469$

Fund balance, January 1 305,202 - 305,202

Fund balance, December 31 39,206$ -$ 39,206$

For the Year Ended December 31, 2012

CITY OF MISSION, KANSAS

STORM DRAIN FUND

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET

Budgeted Amounts

See independent auditor's report on the financial statements. 17

Agency Funds

Assets

Cash and cash equivalents 32,740$

Total Assets 32,740$

Liabilities

Due to others 32,740$ Total Liabilities 32,740$

CITY OF MISSION, KANSAS STATEMENT OF ASSETS AND LIABILITIES

AGENCY FUNDS December 31, 2012

The notes to the financial statements are an integral part of this statement. 18

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

The City of Mission (the City) is a city of the second class with a mayor-council form of government with the addition of a City Administrator. The City was incorporated in 1951 and covers an area of approximately 2.87 square miles in Johnson County, Kansas. The City has approximately 9,323 residents. The City’s organization consists of the general government departments of General Overhead, Finance/Administration, Municipal Court, Legislative, Community Development, and the Public Works, Police, Parks and Recreation and Neighborhood Services Departments.

Under governmental accounting standards for defining the financial reporting entity and identifying entities to be included in basic financial statements, these financial statements include only the City. There are no other entities for which the City is financially accountable.

B. Government-wide and fund financial statements

The statement of net position and the statement of activities report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. All activities of the City are governmental activities.

The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are specifically associated with a service, program or department and therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program and grants and contributions that are restricted to meeting the operational requirements of a particular program. Taxes and other items, which are not classified as program revenues, are presented as general revenues of the city.

Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual funds are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and presented in a single column in the fund financial statements.

C. Measurement Focus, Basis of Accounting and Basis of Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources.

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)

Property taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.

The City reports the following major governmental funds:

The General Fund is used to account for resources traditionally associated with government, which are not required legally, or by sound financial management to be accounted for in another fund.

The Storm Drain Fund is used to account for storm water utility charges received based on an equivalent residential unit (ERU) to be used for storm water improvements citywide.

The Transportation Utility Fund is used to account for the transportation utility charges received based on an estimated land use formula per parcel to fund street and other transportation related improvements.

The Capital Improvement Fund is used to account for resources used to construct and maintain infrastructure citywide.

Agency funds are custodial in nature and do not measure results of operations or have a measurement focus. Agency funds do, however, use the accrual basis of accounting. The following activities are accounted for in the agency funds:

License Reinstatement Fees Fund is used to account for amounts collected through the court for driver’s license restatement fees due to the State of Kansas.

Alcohol and Drug Safety Fund is used to account for monies collected and paid for Driving Under the Influence evaluations.

Cafeteria Plan is used to account for monies collected for employee cafeteria plan contributions.

D. Assets, Liabilities and Equity

1. Deposits and Investments

The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments (including certificates of deposit) with original maturities of three months or less from the date of acquisition.

The City reflects investments with a maturity of one year or longer at the time of purchase at fair value, and those maturing in less than one year at the time of purchase at amortized cost.

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

D. Assets, Liabilities and Equity (Continued)

2. Receivables and Payables

Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the year are referred to as either “interfund receivables/payables” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.”

Advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources.

All trade and property tax receivables are shown net of an allowance for uncollectibles.

Collection of current year property tax by the County Treasurer is not completed, apportioned or distributed to the various subdivisions until the succeeding year, such procedure being in conformity with governing state statutes. Consequently, current year property taxes receivable are not available as a resource that can be used to finance the current year operations of the City and therefore are not susceptible to accrual. Accruals of uncollected current year property taxes are offset by deferred revenue and are identical to the adopted budget for 2013.

It is not practicable to apportion delinquent taxes held by the County Treasurer at the end of the accounting period, and further, the amounts thereof are not material in relationship to the financial statements taken as a whole.

The determination of assessed valuations and the collection of property taxes for all political subdivisions in the State of Kansas are the responsibility of the various counties. The County Appraiser annually determines assessed valuations on January 1 and the County Clerk spreads the annual assessment on the tax rolls. Property taxes are levied as of November 1 and become a lien on the property as of that date. Payments are due November 1, becoming delinquent, with penalty, December 21. Payments of 50% are accepted through December 20, with the second 50% then being due on or before May 10 of the following year.

The County Treasurer is the tax collection agent for all taxing entities within the County. The initial distribution to the subdivisions, including the City, is on or before January 20 of the ensuing year. Additional amounts are distributed on four (4) subsequent dates throughout the calendar year.

3. Capital Assets

Capital assets, which include property, plant, equipment and infrastructure assets, are reported 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 $1,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

D. Assets, Liabilities and Equity (Continued)

3. Capital Assets (Continued)

Property, plant and equipment of the government, are depreciated using the straight-line method over the following estimated useful lives:

Assets Years Buildings 20-75 Building improvements 20-75 Machinery and equipment 5-10 Office equipment 5-10 Infrastructure 20-75

4. Long-Term Obligations

In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities statement of net position. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

5. Fund Equity

In the fund financial statements, governmental funds report fund balance in the following classifications: nonspendable, restricted, committed, assigned and unassigned. Nonspendable fund balance includes amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact. Restricted fund balance indicates that constraints have been placed on the use of resources either by being externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Committed fund balances include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the city council. The formal action of the city council would be in the form of an ordinance or resolution. Assigned fund balances include amounts that are constrained by the City management’s, through department heads or the city administrator, intent to be used for specific purposes, but are neither restricted nor committed. The authority for management to assign fund balance is done through the City Council Policy Manual. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available restricted amounts is considered to be spent first. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

D. Assets, Liabilities and Equity (Continued)

5. Fund Equity (Continued)

When an expenditure is incurred for purposes for which committed, assigned, or unassigned fund balance is available, the following is the order in which resources will be expended: committed, assigned and unassigned.

The following is the detail for fund balance classifications in the financial statements:

Other Total Special Storm Sales General Transportation Capital Governmental Governmental

General Highway Drain Tax Obligation Utility Improvement Funds Funds Fund Balances: Restricted for: Public safety -$ 34,099$ -$ -$ -$ -$ -$ -$ 34,099$ Public works - - 39,206 - - 327,366 - 592,211 958,783 Debt payments - - - 60,550 2,787 - - 6,800 70,137 Capital improvements - - - - - - 3,926,491 - 3,926,491 Committed for: Public works - - - - - - - 5,610 5,610 Unassigned: 1,340,574 - - - - - - [48,129] 1,292,445

Total Fund Balances 1,340,574$ 34,099$ 39,206$ 60,550$ 2,787$ 327,366$ 3,926,491$ 556,492$ 6,287,565$

Major Governmental Funds

6. Compensated Absences

Under terms of the City’s personnel policy, City employees are granted vacation and sick leave in varying amounts. At the end of each calendar year, employees are allowed to carry over any unused vacation. In the event of termination, an employee is paid for any unused carryover plus all unused earned vacation through the date of separation not to exceed a total of 240 hours.

The City’s sick leave policy is to pay employees 50% of unused sick leave upon retirement or termination without cause. A liability for compensated absences is reported in governmental funds only if it has matured, for example, as a result of employee resignations and retirements. All compensated absences are accrued when incurred in the government-wide financial statements.

The General Fund has been used to liquidate the governmental funds compensated absences in prior years. The amount of the liability due within one year is $241,914.

7. Special Assessments

Kansas statutes require projects financed in part by special assessments to be financed through the issuance of general obligation bonds, which are secured, by the full faith and credit of the City. Special assessments paid prior to the issuance of general obligation bonds are recorded as a project revenue and those received after the issuance of general obligation bonds are recorded as revenue in the General Obligation Fund. Further, state statutes require levying additional general ad valorem property taxes in the General Obligation Fund to finance delinquent special assessments receivable. Accordingly, special assessments receivable is accounted for within the General Obligation Fund. Special assessments are levied over the repayment period of the bonds and the annual installments are due and payable with annual ad valorem property taxes. Special assessment taxes levied are a lien on the property and are recorded as special assessments receivable in the General Obligation Fund with a corresponding amount recorded as deferred revenue. Special assessments receivable at December 31, 2012, in the fund financial statements totaled $0.

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

D. Assets, Liabilities and Equity (Continued)

8. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

9. Deferred Revenue

The City reports deferred revenue on its governmental funds balance sheet. Deferred revenues arise when a potential revenue does not meet both the “measurable” and “available” criteria for recognition in the current period. In subsequent periods, when both recognition criteria are met, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized on the statement of revenues, expenditures and changes in fund balances.

10. Net Position

Net position represents the difference between assets and liabilities. Net position invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments.

II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

A. Budgetary Information

Kansas statutes require that an annual operating budget be legally adopted for the general fund, special revenue funds (unless specifically exempted by statute), and debt service funds. The statutes provide for the following sequence and timetable in the adoption of the legal annual operating budget:

1. Preparation of the budget for the succeeding calendar year on or before August 1st. 2. Publication in the local newspaper of the proposed budget and notice of public hearing on the budget on

or before August 5th. 3. Public hearing on or before August 15th, but at least ten days after publication of the notice of hearing. 4. Adoption of the final budget on or before August 25th.

The statutes allow for the governing body to increase the originally adopted budget for previously unbudgeted increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing to amend the budget must be published in the local newspaper. At least ten days after publication the hearing may be held and the governing body may amend the budget at that time. The 2012 budget was amended for the Special Parks and Recreation Fund.

The statutes permit management to transfer budgeted amounts between line items within an individual fund. However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of expenditures of individual funds. Budget comparison statements are presented for each fund showing actual receipts and expenditures compared to legally budgeted receipts and expenditures.

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)

A. Budgetary Information (Continued)

The actual data presented in the budgetary comparison statements differs from the data presented in accordance with accounting principles generally accepted in the United States of America (GAAP). The following is a summary of the effects on the ending fund balances caused by the difference in accounting between the budgetary basis and GAAP.

All legal annual operating budgets are prepared using the modified accrual basis of accounting, modified further by the encumbrance method of accounting. Revenues are recognized when cash is received. Expenditures include disbursements, accounts payable and encumbrances. Encumbrances are commitments by the City for future payments and are supported by a document evidencing the commitment, such as a purchase order or contract. All unencumbered appropriations (legal budget expenditure authority) lapse at year end. Encumbered appropriations are carried forward.

A legal operating budget is not required for the Transportation Utility Fund, Capital Improvement Fund, Special Law Enforcement Fund, School District Sales Tax Fund, Mission Convention and Visitor’s Bureau Fund, Donations and Gifts Fund, Street Sales Tax, Rock Creek Drainage District #1 Fund, Rock Creek Drainage District #2 Fund, Solid Waste Fund and the agency funds.

Spending in funds, which are not subject to the legal annual operating budget requirements, is controlled by federal regulations, other statutes, or by the use of internal spending limits established by the governing body.

Other Total Special Storm Sales General Transportation Capital Governmental Governmental

General Highway Drain Tax Obligation Utility Improvement Funds Funds GAAP FUND BALANCE December 31, 2012 1,340,574$ 34,099$ 39,206$ 60,550$ 2,787$ 327,367$ 3,926,491$ 556,492$ 6,287,566$

Adjustments: Unreserved fund balances not subject to the Kansas Budget Law: Transportation Utility - - - - - [327,367] - - [327,367] Capital Improvement - - - - - - [3,926,491] - [3,926,491] Nonmajor governmental funds - - - - - - - [422,913] [422,913]

Total deductions - - - - - [327,367] [3,926,491] [422,913] [4,676,771]

BUDGETARY FUND BALANCE December 31, 2012 1,340,574$ 34,099$ 39,206$ 60,550$ 2,787$ -$ -$ 133,579$ 1,610,795$

Major Governmental Funds

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)

B. Restatement of Equity

The beginning governmental activities net position was restated as follows:

Governmental Activities

Net position - beginning 27,916,749$

Prior period adjustment

Revenue recognition of taxes and special assessments previously deferred 1,430,253

Items previously misclassifed as capital assets, net [157,087]

Net position - beginning, restated 29,189,915$

III. DETAILED NOTES ON ALL FUNDS

A. Deposits and Investments

The City’s cash is considered to be active funds by management and is invested according to K.S.A. 9- 1401. The statute requires that banks eligible to hold active funds have a main or branch bank in the county or an adjacent county in which the City is located and the banks provide an acceptable rate for active funds.

Various City investments are considered to be idle funds by management and are invested according to K.S.A. 12-1675. The statute requires that at the City invest it’s idle funds in only temporary notes of the City, bank certificates of deposit, repurchase agreements, and if eligible banks do not offer an acceptable rate for the funds: U.S. Treasury bills or notes, the Municipal Investment Pool (KMIP). Maturities of the above investments may not exceed two years by statute.

Some of the City’s investments are of bond proceeds invested pursuant to K.S.A. 10-131. This statute allows additional investment authority beyond that of K.S.A. 12-1675. Investments of bond proceeds may follow K.S.A. 12-1675 or include other investments such as the KMIP, direct obligations of the US government or any agency thereof, investment agreements with a financial institution the obligations of which at the time of investment are rated in either of the three highest rating categories by Moody’s investors service or Standard and Poor’s corporation, and various other investments as specified in K.S.A. 10-131.

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

III. DETAILED NOTES ON ALL FUNDS (Continued)

A. Deposits and Investments (Continued)

At December 31, 2012, the City has the following investments:

Maturity Less Than 5 - 10 10 - 15

Investment Type Fair Value Rating 5 Years Years Years Kansas Municipal Investment Pool 5,704,066$ S&P AAAf/S1+ 5,704,066$ -$ -$

The Kansas Municipal Investment Pool is under the oversight of the Pooled Money Investment Board. The board is comprised of the State Treasurer and four additional members appointed by the State Governor. The board reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations of, or obligations that are insured as to principal and interest by the U.S. government or any agency thereof, with maturities up to four years. No more than 10 percent of those funds may be invested in mortgage-backed securities. In addition, the State pool may invest in repurchase agreements with Kansas banks or with primary government securities dealers. The fair value of the City’s position in the municipal investment pool is substantially the same as the value of the pool shares.

The City does not have any formal investment policies that would further limit concentration of credit risk, interest rate, or custodial credit risks beyond state statutes.

Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City’s deposit policy for custodial credit risk require that the depository banks will maintain 100% security in the form of FDIC coverage and pledged collateral according to K.S.A. 9-1402.

B. Accounts Receivable

Accounts receivable of the City, as of the year end, are as follows:

Other General Governmental

General Obligation Funds Total Taxes 1,624,002$ 119,706$ 122,832$ 1,866,540$ Intergovernmental 89 - - 89 Other 38,466 - - 38,466 Total 1,662,557$ 119,706$ 122,832$ 1,905,095$

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

III. DETAILED NOTES ON ALL FUNDS (Continued)

C. Capital Assets

Capital asset activity for the year ended December 31, 2012, was as follows:

Restated Balance at Balance at Balance at 12/31/11 Restatement 12/31/11 Additions Retirements 12/31/12

City governmental activities: Capital assets, not being depreciated Construction in progress 774,459$ -$ 774,459$ 573,968$ -$ 1,348,427$ Land 10,862,274 - 10,862,274 268,220 - 11,130,494 Capital assets, being depreciated Building 8,441,030 - 8,441,030 - - 8,441,030 Equipment and vehicles 4,492,665 [155,320] 4,337,345 745,835 267,275 4,815,905 Infrastructure 43,862,126 [7,181] 43,854,945 52,747 - 43,907,692

Total capital assets 68,432,554 [162,501] 68,270,053 1,640,770 267,275 69,643,548

Less accumulated depreciation for: Building 2,737,721 - 2,737,721 179,768 - 2,917,489 Equipment and vehicles 3,428,434 [5,415] 3,423,019 344,547 260,483 3,507,083 Infrastructure 4,300,496 - 4,300,496 1,151,140 - 5,451,636

Total accumulated depreciation 10,466,651 [5,415] 10,461,236 1,675,455 260,483 11,876,208

Governmental activities capital assets, net 57,965,903$ [157,086]$ 57,808,817$ [34,685]$ 6,792$ 57,767,340$

The City’s depreciation expense was charged to governmental functions as follows:

Governmental Activities:

General government 47,674$ Public safety 128,129 Public works 1,244,898 Culture and recreation 254,754

Total depreciation 1,675,455$

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

III. DETAILED NOTES ON ALL FUNDS (Continued)

D. Long-term Debt

During the year ended December 31, 2012, the following changes occurred in long term liabilities:

Balance Balance Due January 1, December 31, Within

2012 Additions Retirements 2012 A Year

General obligation debt 32,748,611$ 4,322,662$ 2,445,309$ 34,625,964$ 2,421,574$ Capital lease payable 407,344 - 141,890 265,454 117,525 KDHE loan payable 99,864 - 3,977 95,887 4,096 Special assessment bonds 10,000 - 10,000 - - Temporary notes 485,000 - - 485,000 - Compensated absences 478,847 254,024 241,914 490,957 241,914

34,229,666$ 4,576,686$ 2,843,090$ 35,963,262$ 2,785,109$ General Obligation Bonds. The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities.

General obligation bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally are issued with equal amounts of principal maturing each year. General obligation bonds currently outstanding are as follows:

Outstanding Date Original Interest Maturity Amount As Of

Series Issued Amount Rates Date December 31, 2012

Series 2004A - Capital Improvement 10/1/2004 1,235,000$ 1.40%-3.50% 9/1/2014 280,000$ Series 2007A - Capital Improvement 5/15/2007 751,114 5.00%-5.30% 9/1/2018 495,000 Series 2009A - Refunding 6/10/2009 22,910,000 1.00%-4.35% 9/1/2029 16,280,000 Series 2010A - Capital Improvement 8/18/2010 3,276,571 2.00%-2.75% 9/1/2020 2,681,256 Series 2010B - Refunding 12/15/2010 6,974,092 4.00%-4.25% 9/1/2029 6,974,092 Series 2011A - Capital Improvement 3/15/2011 4,440,000 1.25%-1.75% 9/1/2015 3,592,954 Series 2012A - Capital Improvement 2/16/2012 4,360,000 0.40%-2.00% 9/1/2022 4,322,662

34,625,964$

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

III. DETAILED NOTES ON ALL FUNDS (Continued)

D. Long-term Debt (Continued)

Annual debt service requirements to maturity for the general obligation bonds are as follows:

Year Ending December 31, Principal Interest

2013 2,421,574$ 1,020,417$ 2014 4,376,574 978,687 2015 2,966,574 905,286 2016 2,138,923 845,364 2017 2,193,923 792,406

2018-2022 11,903,030 2,979,191 2023-2027 6,819,546 1,184,206 2028-2029 1,805,818 116,556

Total 34,625,964$ 8,822,114$

The City issued Series 2012A General Obligation Bonds in the amount of $4,360,000 on February 16, 2012 to provide financing for a portion of the cost of certain street improvement projects. The interest rate on the bonds is 0.40% to 2.00% and has a final maturity of September 1, 2022.

Temporary notes currently outstanding are as follows:

Date Original Interest Maturity Series Issued Amount Rate Date Outstanding

Series 2011-1 12/30/2011 485,000$ 1.15% 9/1/2014 485,000$

Annual debt service requirements to maturity for temporary notes outstanding at December 31, 2012 are as follows:

Year Ending December 31, Principal Interest

2013 -$ 5,578$ 2014 485,000 5,578 Total 485,000$ 11,155$

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

III. DETAILED NOTES ON ALL FUNDS (Continued)

D. Long-term Debt (Continued)

The Kansas Department of Health and Environment and the City has entered into an agreement for a loan. As of December 31, 2012, the City had made $406,272 in loan draws and had 304,704 in principal forgiveness. The loan calls for an interest rate of 2.60%. The City will retire this loan with semi-annual payments through March 2031.

The following displays annual debt service requirements to maturity for this KDHE loan for the full proceeds amount:

Year Ending December 31, Principal Interest

2013 4,096$ 237$ 2014 4,203 227 2015 4,313 216 2016 4,426 205 2017 4,541 194

2018-2022 24,553 794 2023-2027 27,938 469 2028-2031 21,818 110

Total 95,887$ 2,453$

At December 31, 2012, the remaining principal balance of outstanding debt issues previously defeased is $4,065,000. The principal and interest payments for these bonds will be paid by the trustee for the related escrow securities on the scheduled payment dates. This amount is not recorded in these financial statements.

Conduit Debt Obligations. From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State of Kansas, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2012 there were five series of Industrial Revenue Bonds outstanding, with an aggregate principal amount payable of $39,010,000.

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

IV. OTHER INFORMATION

A. Risk Management

The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the City carries commercial insurance. No significant reductions in insurance coverage from that of the prior year have occurred. Settlements have not exceeded insurance coverage for each of the last three years.

The City is a member of the Kansas Eastern Region Insurance Trust (KERIT), a group self-insured program consisting of local governments and other political subdivisions. KERIT was formed in 1986 as a public entity risk retention pool to provide workers’ compensation benefits to employees of Trust members. The City pays annual premiums to KERIT for workers’ compensation coverage. The agreement with KERIT provides that the Trust will be self-sustaining through member premiums. KERIT has the authority to assess members for any deficiencies of revenues under expenses for any single plan year. Likewise, KERIT has the authority to return dividends to members for the excess of revenues over expenses relating to any single plan year according to the Trust’s by-laws.

B. Defined Benefit Pension Plan

Plan description - The City participates in the Kansas Public Employees Retirement System (KPERS) and the Kansas Police and Fireman’s Retirement System (KP&F). Both are cost-sharing multiple-employer defined benefit pension plans as provided by Kansas statutes (K.S.A. 74-4901 et seq). KPERS and KP&F provide retirement benefits, life insurance, disability income benefits and death benefits. Kansas law established and amends benefit provisions. KPERS and KP&F issue a publicly available financial report that includes financial statements and required supplementary information. Those reports may be obtained by writing to 611 South Kansas Ave., Suite 100, Topeka, Kansas 66603 or by calling 1-888-275-5737.

Funding Policy - K.S.A. 74-4919 establishes the KPERS member-employee contribution rate at either 4% or 6% of covered salary based on the employee’s tier. K.S.A. 74-4975 establishes the KP&F member– employee contribution rate at 7% of covered salary. The employer collects and remits member-employee contributions according to the provision of section 414(h) of the Internal Revenue Code. State law provides that the employer contribution rates be determined annually based on the results of an annual actuarial valuation. KPERS and KP&F are funded on an actuarial reserve basis. State law sets a limitation on annual increases in the contribution rates. The KPERS employer rate was 7.74% for the year ended December 31, 2012. The City employer contributions to KPERS for the year ended December 31, 2012, 2011 and 2010 were $176,846, $160,129 and $150,337, respectively, equal to the required contributions for each year. The KP&F employer rate established for fiscal years beginning in 2012 is 16.43%. Employers participating in KP&F also make contributions to amortize the liability for past service costs, if any, which are determined separately for each participating employer. The City’s contributions to KP&F for the years ended December 31, 2012, 2011 and 2010 were $267,363, $253,144 and $217,663, respectively, equal to the required contributions for each year.

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

IV. OTHER INFORMATION (Continued)

C. Interfund Transfers

A reconciliation of all transfers by fund type for 2012 follows:

Fund To From General -$ 605,000$ Storm Drain - - Capital Improvement 497,000 - Other Governmental Funds 185,000 77,000

682,000$ 682,000$

The City uses interfund transfers to share administrative costs between funds.

D. Defined Contribution Plan

The City has established the City of Mission Money Purchase Plan, administered by the Principal Financial Group, available to employees other than those participating in KP&F. The City Council established and amends benefit provisions. Employees are eligible to participate after completing 1,000 or more hours of service. The City’s contributions for each employee are 60% vested after five years of service and vest an additional 20% each year thereafter. The City makes annual contributions to the plan equal to 4% of covered employees’ wages. Employees under the plan are allowed to make contributions to the plan of up to 10% of their wages. In addition to this employee contribution, the City will contribute 50% of the employee contributions up to a maximum of 2%. The City’s contributions for 2011 and 2012 were $117,983, and $108,877, respectively.

E. Capital Leases

The City has entered into lease agreements as lessee for financing the acquisition of equipment. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception.

Governmental Activities Assets

Other equipment 265,454$

Minimum future lease payments under capital leases as of December 31, 2012 are:

Year Ended Total December 31, Principal Interest Payment

2013 117,525$ 5,992$ 123,517$ 2014 120,497 3,020 123,517 2015 18,986 947 19,933 2016 8,446 118 8,563

Total 265,454$ 10,077$ 275,531$

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

IV. OTHER INFORMATION (Continued)

F. Postemployment Healthcare Plan

Plan Description. The City operates a single employer defined benefit healthcare plan administered by the City. The Employee Benefit Plan (the Plan) provides medical benefits to eligible early retirees and their spouses. K.S.A. 12-5040 requires all local governmental entities in the state that provide a group health care plan to make participation available to all retirees and dependents until the retiree reaches the age of 65 years. The General Fund has been used to liquidate net other postemployment benefit obligations in prior years. No separate financial report is issued for the Plan.

Funding Policy. The contribution requirements of plan participants and the City are established and amended by the City. The required contribution is based on projected pay-as-you-go financing requirements. Plan participant contribution percentages and monthly premiums are as follows:

Coverage Health Dental Vision Single 503.25$ 29.71$ 13.97$ Single & Spouse 1,078.38 86.90 30.02

Monthly Contributions

Years of Service Health Dental Vision

10 - 14 75% 100% 100% 15 - 19 70% 100% 100% 20 - 24 60% 100% 100% 25 or more 50% 100% 100%

Retiree Contribution Percentage

Annual OPEB Cost and Net OPEB Obligation. The City’s annual other postemployment benefit (OPEB) cost (expense) 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 any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.

The following table shows the components of the City’s annual OPEB cost for the Plan for the year, the amount actually contributed to the plan, and the changes in the City’s net OPEB obligation to the Plan:

Annual required contribution 103,731$ Interest on net OPEB obligation 8,125 Adjustment to annual required contribution [10,067] Annual OPEB cost (expense) 101,789 Benefit payments 74,105 Change in net OPEB obligation 27,684 Net OPEB obligation - beginning of year 183,769 Net OPEB obligation - end of year 211,453$

CITY OF MISSION, KANSAS

NOTES TO THE FINANCIAL STATEMENTS December 31, 2012

IV. OTHER INFORMATION (Continued)

F. Postemployment Healthcare Plan (Continued)

The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for the year ended December 31, 2012 was as follows:

Annual Percentage of Fiscal Annual OPEB Net Annual OPEB Year OPEB Cost OPEB Cost

Ended Cost Contributed Obligation Contributed December 31, 2010 84,696$ 23,545$ 117,778$ 27.80% December 31, 2011 89,536 23,545 183,769 26.30% December 31, 2012 101,789 74,105 211,453 72.80%

Funding Status and Funding Progress. As of January 1, 2012, the most recent actuarial valuation date, the Plan was not funded. The actuarial accrued liability for benefits was $953,171 and the actuarial value of asset was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $953,171. The covered payroll (annual payroll of active employees covered by the plan) was $3,212,684, and the ratio of the UAAL to the covered payroll was 29.7%.

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 funded 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 financial statement, presents multiyear trend information about whether the actuarial value of plan assets (if any) are increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

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 participants) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan participants 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.

As of January 1, 2012, the most recent actuarial valuation date, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 2% investment rate of return, which is the rate of the employer’s own investments as there are no plan assets and an annual healthcare cost trend of 8.4% initially, reduced by decrements to an ultimate rate of 5% in 2023. The UAAL is being amortized as a level dollar over an open thirty-year period.

CITY OF MISSION, KANSAS

OTHER POST-EMPLOYMENT BENEFITS REQUIRED SUPPLEMENTARY INFORMATION

December 31, 2012

Schedule of Employer Contributions:

Annual Percentage of Fiscal Annual OPEB Net Annual OPEB Year OPEB Cost OPEB Cost

Ended Cost Contributed Obligation Contributed December 31, 2010 84,696$ 23,545$ 117,778$ 27.80% December 31, 2011 89,536 23,545 183,769 26.30% December 31, 2012 101,789 74,105 211,453 72.80%

Schedule of Funding Progress:

UAAL as Actuarial Actuarial Actuarial Unfunded Funded Covered Percent of Valuation Value of Accrued AAL Ratio Payroll Payroll

Date Assets (a) Liability (b) (b) - (a) (a/b) (c) (b-a)/(c) 1/1/2009 -$ 519,688$ 519,688$ 0.0% 3,629,440$ 14.32% 1/1/2012 - 953,171 953,171 0.0% 3,212,684 29.67%

CITY OF MISSION, KANSAS

COMBINING STATEMENTS - NONMAJOR FUNDS

NONMAJOR SPECIAL REVENUE FUNDS

Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.

1. Special Alcohol Fund - established to account for one-third of the Alcohol Tax Funds sent to the City quarterly from the State Treasurer’s office, and to disperse monies that are allocated yearly for distribution to agencies that are approved by the City Council in specified amounts on a yearly basis.

2. Special Parks and Recreation Fund - established to account for one-third of the Alcohol Tax Funds that are sent to the City quarterly by the State Treasurer’s office which are computed in compliance with K.S.A. Supp. 79-41A04 et seq., representing tax receipts and adjustments processed by the Department of Revenue.

3. Special Law Enforcement Fund - established to provide a depository for monies forfeited to the police department pursuant to provisions of K.S.A. 65-4135 and 65-4156 relating to controlled substance investigation forfeitures. Expenditures from this fund are made only for authorized law enforcement purposes of the police department. Monies in the fund are not to be used for normal operating expenses of the City’s police department.

4. School District Sales Tax Fund - established to account for the City's portion of sales tax monies received as a result of a 1/8th cent sales tax granted to schools by Johnson County voters in 2002. The sales tax is no longer being collected.

5. Mission Convention and Visitor’s Bureau Fund - established to account for transient guest tax receipts and is used to track the activities and expenditures of the Mission Convention and Visitor’s Bureau.

6. Donations and Gifts Fund - established to account for donations and gifts from businesses, groups and individuals.

7. Solid Waste Fund – established to account for solid waste charges for services.

8. Street Sales Tax Fund – established to account for revenues from the ¼ cent sales tax for streets, pledged to retire the Series 2012-A General Obligation Bonds issued for the Martway/Johnson Drive rehabilitation projects. The sales tax sunsets in ten years.

9. Rock Creek Drainage District #1 – established to account for the Rock Creek Drainage District #1.

10. Rock Creek Drainage District #2 – established to account for the Rock Creek Drainage District #2.

Special Special School Special Parks and Law District

ASSETS Alcohol Recreation Enforcement Sales Tax

Cash and cash equivalents 10,637$ 122,942$ 5,610$ 27,064$ Receivables Taxes - - - -

Total assets 10,637$ 122,942$ 5,610$ 27,064$

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

Liabilities Accounts payable -$ -$ -$ -$ Deferred revenue - - - -

Total liabilities - - - -

Deferred inflows of resources Unavailable revenue - property taxes - - - -

Total deferred inflows of resources - - - -

Fund balances Restricted 10,637 122,942 - 27,064 Committed - - 5,610 - Unassigned - - - -

Total fund balances 10,637 122,942 5,610 27,064

Total liabilities and fund balances 10,637$ 122,942$ 5,610$ 27,064$

CITY OF MISSION, KANSAS COMBINING BALANCE SHEET

NONMAJOR SPECIAL REVENUE FUNDS December 31, 2012

Mission Convention and Street Rock Creek Rock Creek

Visitor's Donations Solid Sales Drainage Drainage Bureau and Gifts Waste Tax District #1 District #2 Total

51,992$ 5,746$ 2,319$ 327,745$ 486$ 6,800$ 561,341$

- - - 46,860 2,579 73,393 122,832

51,992$ 5,746$ 2,319$ 374,605$ 3,065$ 80,193$ 684,173$

-$ -$ 50,448$ -$ -$ -$ 50,448$ - 1,261 - - - - 1,261

- 1,261 50,448 - - - 51,709

- - - - 2,579 73,393 75,972

51,992 4,485 - 374,605 486 6,800 599,011 - - - - - - 5,610 - - [48,129] - - - [48,129]

51,992 4,485 [48,129] 374,605 486 6,800 556,492

51,992$ 5,746$ 2,319$ 374,605$ 3,065$ 80,193$ 684,173$

38 See independent auditor's report on the financial statements.

Mission Special Special School Convention and

Special Parks and Law District Visitor's Alcohol Recreation Enforcement Sales Tax Bureau

Revenues Taxes -$ -$ -$ -$ 11,498$ Charges for services - - - - - Intergovernmental 38,570 38,572 - - 49,418 Miscellaneous - - 3,025 - -

Total revenues 38,570 38,572 3,025 - 60,916

Expenditures Public works and improvements 32,499 83,933 1,136 1,000 68,340

Total expenditures 32,499 83,933 1,136 1,000 68,340

Excess [deficiency] of revenues over [under] expenditures 6,071 [45,361] 1,889 [1,000] [7,424]

Other financing sources [uses] Transfer in - - - - - Transfer out - - - - -

Total other financing sources [uses] - - - - -

Net change in fund balances 6,071 [45,361] 1,889 [1,000] [7,424]

Fund balances, January 1 4,566 168,303 3,721 28,064 59,416

Fund balances, December 31 10,637$ 122,942$ 5,610$ 27,064$ 51,992$

CITY OF MISSION, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS

For the Year Ended December 31, 2012

Street Rock Creek Rock Creek Donations Solid Sales Drainage Drainage and Gifts Waste Tax District #1 District #2 Total

-$ -$ 374,594$ 2,641$ 76,623$ 465,356$ - 358,763 - - - 358,763 - - - - - 126,560 - 8,515 11 - 7 11,558

- 367,278 374,605 2,641 76,630 962,237

- 604,551 - - - 791,459

- [237,273] 374,605 2,641 76,630 170,778

- 185,000 - - - 185,000 - - - [4,000] [73,000] [77,000]

- 185,000 - [4,000] [73,000] 108,000

- [52,273] 374,605 [1,359] 3,630 278,778

4,485 4,144 - 1,845 3,170 277,714

4,485$ [48,129]$ 374,605$ 486$ 6,800$ 556,492$

See independent auditor's report on the financial statements. 39

Variance with Adjustments Final Budget

GAAP to Budgetary Budgetary Positive Basis Basis Basis Original Final [Negative]

Revenues Intergovernmental 38,570$ -$ 38,570$ 32,500$ 32,500$ 6,070$

Total revenues 38,570 - 38,570 32,500 32,500 6,070

Expenditures Social services 32,499 - 32,499 32,658 32,658 159

Total expenditures 32,499 - 32,499 32,658 32,658 159

Excess [deficiency] of revenues over [under] expenditures 6,071 - 6,071 [158]$ [158]$ 6,229$

Fund balance, January 1 4,566 - 4,566

Fund balance, December 31 10,637$ -$ 10,637$

CITY OF MISSION, KANSAS

SPECIAL ALCOHOL FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET

For the Year Ended December 31, 2012

Budgeted Amounts

See independent auditor's report on the financial statements. 40

Variance with Adjustments Final Budget

GAAP to Budgetary Budgetary Positive Basis Basis Basis Original Final [Negative]

Revenues Intergovernmental 38,572$ -$ 38,572$ 32,500$ 32,500$ 6,072$

Total revenues 38,572 - 38,572 32,500 32,500 6,072

Expenditures Public works and improvements 83,933 - 83,933 35,408 127,500 43,567

Total expenditures 83,933 - 83,933 35,408 127,500 43,567

Excess [deficiency] of revenues over [under] expenditures [45,361] - [45,361] [2,908]$ [95,000]$ 49,639$

Fund balance, January 1 168,303 - 168,303

Fund balance, December 31 122,942$ -$ 122,942$

For the Year Ended December 31, 2012

CITY OF MISSION, KANSAS

SPECIAL PARKS AND RECREATION FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET

Budgeted Amounts

See independent auditor's report on the financial statements. 41

CITY OF MISSION, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCE - ACTUAL AND BUDGET GENERAL OBLIGATION FUND

For the Year Ended December 31, 2012

Variance with Adjustments Final Budget

GAAP to Budgetary Budgetary Positive Basis Basis Basis Original Final [Negative]

Revenues: Taxes 134,760$ -$ 134,760$ 136,755$ 136,755$ [1,995]$ Special assessments 10,426 - 10,426 11,200 11,200 [774] Interest 14 - 14 150 150 [136]

Total revenues 145,200 - 145,200 148,105 148,105 [2,905]

Expenditures: Principal 140,000 - 140,000 149,005 149,005 9,005 Interest, issue cost and fiscal charges 8,810 - 8,810 - - [8,810]

Total expenditures 148,810 - 148,810 149,005 149,005 195

Excess [deficiency] of revenues over [under] expenditures [3,610] - [3,610] [900]$ [900]$ [2,710]$

Fund balance, January 1 6,397 - 6,397

Fund balance, December 31 2,787$ -$ 2,787$

Budgeted Amounts

See independent auditor's report on the financial statements. 42

CITY OF MISSION, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCE - ACTUAL AND BUDGET SALES TAX BOND FUND

For the Year Ended December 31, 2012

Variance with Adjustments Final Budget

GAAP to Budgetary Budgetary Positive Basis Basis Basis Original Final [Negative]

Revenues: Interest 1,409$ -$ 1,409$ -$ -$ 1,409$

Total revenues 1,409 - 1,409 - - 1,409

Expenditures: Principal 475,000 - 475,000 495,900 495,900 20,900 Interest, issue cost and fiscal charges 10,450 - 10,450 - - [10,450]

Total expenditures 485,450 - 485,450 495,900 495,900 10,450

Excess [deficiency] of revenues over [under] expenditures [484,041] - [484,041] [495,900] [495,900] 11,859

Other financing sources [uses] Transfer out - - - [77,937] [77,937] 77,937 Total other financing sources [uses] - - - [77,937] [77,937] 77,937

Excess [deficiency] of revenues and other sources over [under] over [under] expenditures [484,041] - [484,041] [573,837]$ [573,837]$ 89,796$

Fund balance, January 1 544,591 - 544,591

Fund balance, December 31 60,550$ -$ 60,550$

Budgeted Amounts

See independent auditor's report on the financial statements. 43

CITY OF MISSION, KANSAS

AGENCY FUNDS

Agency funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments and/or other funds.

1. License Reinstatement Fees - established to account for amounts collected through the court for driver’s license restatement fees due to the State of Kansas.

2. Alcohol and Drug Safety - established to account for monies collected and paid for Driving Under the Influence evaluations.

3. Cafeteria Plan - established to account for monies collected for employee cafeteria plan contributions.

CITY OF MISSION, KANSAS COMBINING BALANCE SHEET

AGENCY FUNDS December 31, 2012

License Alcohol & Reinstatement Drug Cafeteria

ASSETS Fees Safety Plan Totals

Cash and cash equivalents 1,526$ 21,249$ 9,965$ 32,740$

Total assets 1,526$ 21,249$ 9,965$ 32,740$

LIABILITIES

Due to others 1,526$ 21,249$ 9,965$ 32,740$

Total liabilities 1,526$ 21,249$ 9,965$ 32,740$

See independent auditor's report on the financial statements. 45

CITY OF MISSION, KANSAS COMBINING SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS For the Year Ended December 31, 2012

Balance Balance License Reinstatement Fees January 1, December 31,

ASSETS 2012 Additions Deductions 2012 Cash and cash equivalents 1,377$ 38,798$ 38,649$ 1,526$ Total assets 1,377$ 38,798$ 38,649$ 1,526$

LIABILITIES

Due to others 1,377$ 38,798$ 38,649$ 1,526$ Total liabilities 1,377$ 38,798$ 38,649$ 1,526$

Balance Balance Alcohol and Drug Safety January 1, December 31,

ASSETS 2012 Additions Deductions 2012 Cash and cash equivalents 35,368$ 3,081$ 17,200$ 21,249$ Total assets 35,368$ 3,081$ 17,200$ 21,249$

LIABILITIES Due to others 35,368$ 3,081$ 17,200$ 21,249$ Total liabilities 35,368$ 3,081$ 17,200$ 21,249$

Balance Balance Cafeteria Plan January 1, December 31,

ASSETS 2012 Additions Deductions 2012 Cash and cash equivalents 9,965$ 69,754$ 69,754$ 9,965$ Total assets 9,965$ 69,754$ 69,754$ 9,965$

LIABILITIES

Due to others 9,965$ 69,754$ 69,754$ 9,965$ Total liabilities 9,965$ 69,754$ 69,754$ 9,965$

Balance Balance Total Agency Funds January 1, December 31,

ASSETS 2012 Additions Deductions 2012 Cash and cash equivalents 46,710$ 111,633$ 125,603$ 32,740$ Total assets 46,710$ 111,633$ 125,603$ 32,740$

LIABILITIES Due to others 46,710$ 111,633$ 125,603$ 32,740$ Total liabilities 46,710$ 111,633$ 125,603$ 32,740$

See independent auditor's report on the financial statements. 46

STATISTICAL SECTION

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Statistical Section (Unaudited)

This part of the City of Mission’s Comprehensive Annual Financial Report (CAFR,) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Contents

Financial Trends

These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity

These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.

Debt Capacity

These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economical Information

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information

These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report related to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Financial Report for the relevant year. The City implemented GASB Statement 34 in 2004; schedules presenting government-wide information include information beginning in that year.

TABLE 1 (UNAUDITED)

2004 2005 2006 2007 2008 2009 2010 2011 2012 Governmental Activities Invested in capital assets, net of related debt 6,511,170$ 4,560,491$ 8,129,556$ 15,120,064$ 18,606,539$ 21,507,063$ 23,644,245$ 25,521,486$ 26,771,829$ Restricted 572,955 623,320 678,017 722,400 857,622 941,397 791,098 550,988 63,337 Unrestricted 5,812,516 8,094,125 4,359,428 2,360,686 3,571,184 3,841,032 1,518,953 1,844,275 3,336,675

Total Net Position 12,896,641$ 13,277,936$ 13,167,001$ 18,203,150$ 23,035,345$ 26,289,492$ 25,954,296$ 27,916,749$ 30,171,841$

(1) Data became available with the inception of GASB 34 during fiscal year 2004, therefore 10 years of data is unavailable.

Source: City of Mission, Kansas Basic Financial Statements.

CITY OF MISSION, KANSAS NET POSITION BY COMPONENT

LAST TEN YEARS (1) (Accrual Basis of Accounting)

TABLE 2 (UNAUDITED)

2004 2005 2006 2007 2008 2009 2010 2011 2012 Expenses Governmental Activities: General government 1,425,130$ 1,445,969$ 3,547,477$ 1,892,510$ 3,534,363$ 2,311,207$ 1,893,579$ 2,964,860$ 2,376,085$ Public safety 2,508,144 2,862,597 2,903,379 3,239,519 3,384,135 3,624,111 3,613,022 3,791,275 3,725,913 Public works 2,929,595 3,188,033 2,657,277 2,953,028 2,699,875 3,990,772 4,388,119 3,332,773 3,306,786 Culture and recreation 2,813,867 2,866,291 2,813,443 2,648,777 2,657,303 2,733,024 2,695,954 2,607,459 2,635,617 Interest on Long-Term Debt 241,768 304,078 617,069 1,039,158 1,390,170 1,276,197 1,007,059 974,679 1,055,632 Total Primary Government Expenses 9,918,504 10,666,968 12,538,645 11,772,992 13,665,846 13,935,311 13,597,733 13,671,046 13,100,033

Program Revenues Governmental Activities: Charges for services General government 252,111 128,692 115,658 154,005 164,213 161,865 132,871 781,913 494,255 Public safety 976,526 1,204,794 1,568,089 1,897,595 1,850,795 2,071,362 1,648,771 1,640,415 1,868,248 Public works 14,069 514,303 372,141 574,455 777,603 1,059,463 1,190,916 2,432,511 2,461,655 Culture and recreation 1,499,413 1,704,874 1,758,012 1,818,171 1,872,041 1,841,918 1,805,037 1,559,797 1,776,706 Operating grants and contributions General government 5,675 815 1,300 - - - - - - Public safety - - 14,573 44,286 68,313 54,871 34,335 46,848 55,474 Public works 619,889 429,843 756,870 4,058,055 5,945,713 3,619,852 1,113,502 2,308,031 492,870 Total Primary Government Program Revenues 3,367,683 3,983,321 4,586,643 8,546,567 10,678,678 8,809,331 5,925,432 8,769,515 7,149,208

Total Primary Government Net [Expense] [6,550,821] [6,683,647] [7,952,002] [3,226,425] [2,987,168] [5,125,980] [7,672,301] [4,901,531] [5,950,825]

General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes 646,256 1,212,425 1,263,709 1,742,544 1,930,893 2,040,368 1,800,788 1,469,907 1,394,756 Sales and use tax 4,641,595 4,428,871 4,296,256 4,542,950 4,323,982 3,972,155 3,973,428 4,057,445 4,040,247 Motor vehicle tax 87,718 82,277 107,865 123,358 160,252 166,532 158,653 159,717 125,721 Franchise tax 749,315 853,066 929,185 986,991 1,022,445 976,392 1,011,213 1,014,732 968,696 Investment earnings 93,159 208,687 710,936 612,662 214,405 37,475 4,282 2,348 4,227 Miscellaneous 117,421 282,229 392,427 281,947 253,637 1,187,205 388,741 159,835 399,104 Total primary government 6,335,464 7,067,555 7,700,378 8,290,452 7,905,614 8,380,127 7,337,105 6,863,984 6,932,751

Change in Net Position Governmental activities [215,357]$ 383,908$ [251,624]$ 5,064,027$ 4,918,446$ 3,254,147$ [335,196]$ 1,962,453$ 981,926$

(1) Data became available with the inception of GASB 34 during fiscal year 2004, therefore 10 years of data is unavailable.

Source: City of Mission, Kansas Basic Financial Statements.

(Accrual Basis of Accounting)

CITY OF MISSION, KANSAS CHANGE IN NET POSITION

LAST TEN YEARS (1)

TABLE 3 (UNAUDITED)

2003 2004 2005 2006 General Fund Unassigned -$ -$ -$ -$ Reserved 238,398 128,343 3,000 3,000 Unreserved 2,188,070 2,598,676 2,694,436 1,923,372 Total General Fund 2,426,468$ 2,727,019$ 2,697,436$ 1,926,372$

All Other Governmental Funds Restricted -$ -$ -$ -$ Committed - - - - Unassigned - - - - Reserved 2,039,455 1,931,462 1,203,988 1,153,883 Unreserved, reported in: Special revenue funds 2,484,200 1,865,105 1,632,667 1,654,844 Debt service fund 509,195 572,955 623,320 678,017 Capital project funds 422,093 910,339 7,435,624 9,970,696 Total All Other Governmental Funds 5,454,943$ 5,279,861$ 10,895,599$ 13,457,440$

Source: City of Mission, Kansas Basic Financial Statements.

CITY OF MISSION, KANSAS FUND BALANCES, GOVERNMENTAL FUNDS

LAST TEN YEARS (Modified Accrual Basis of Accounting)

TABLE 3 (UNAUDITED)

2007 2008 2009 2010 2011 2012

-$ -$ -$ -$ 1,335,927$ 1,340,574$ 3,000 3,000 34,269 34,915 - -

2,120,554 2,459,968 2,473,479 1,289,577 - - 2,123,554$ 2,462,968$ 2,507,748$ 1,324,492$ 1,335,927$ 1,340,574$

-$ -$ -$ -$ 2,093,006$ 4,989,510$ - - - - 3,721 5,610 - - - - - [48,129]

1,153,883 8,828 - - - -

1,635,880 1,642,606 1,527,992 417,604 - - 722,400 857,622 941,397 791,098 - -

[1,813,596] 5,952,272 815,477 [453,906] - - 1,698,567$ 8,461,328$ 3,284,866$ 754,796$ 2,096,727$ 4,946,991$

TABLE 4 (UNAUDITED)

2003 2004 2005 Revenues Taxes 5,349,559$ 6,124,884$ 6,576,639$ Special assessments 119,500 120,888 112,011 Intergovernmental 582,114 625,563 430,658 Licenses and permits 151,410 150,055 189,776 Charges for services 1,458,250 1,593,983 2,050,547 Fines and fees 645,765 877,194 1,200,329 Use of money and property 73,331 93,159 208,687 Miscellaneous 53,523 117,421 282,229 Total revenues 8,433,452 9,703,147 11,050,876

Expenditures General government 768,751 1,070,642 1,418,455 Public safety 1,954,971 2,444,061 2,740,399 Public works 2,532,653 2,805,876 2,980,125 Culture and recreation 1,908,104 2,519,021 2,549,985 Capital outlay 3,941,062 2,235,832 3,820,968 Debt service Principal 502,000 1,960,000 1,045,000 Bond issuance costs - - 72,332 Interest and other charges 239,521 232,246 233,084 Total expenditures 11,847,062 13,267,678 14,860,348

Excess of revenues over [under] expenditures [3,413,610] [3,564,531] [3,809,472]

Other financing sources [uses] Transfers in 368,572 2,279,072 1,285,232 Transfers out [368,572] [2,279,072] [1,285,232] Bond premium - - 294,598 Bond discount - - [3,971] Sale of refunding bonds - - - Payment to refunding bond escrow agent - - - Loan proceeds - - - Sale of bonds 1,200,000 3,690,000 9,105,000 Total other financing sources [uses] 1,200,000 3,690,000 9,395,627

Net change in fund balances [2,213,610]$ 125,469$ 5,586,155$

Debt service as a percentage of noncapital expenditures 9.38% 19.87% 12.23%

Source: City of Mission, Kansas Basic Financial Statements.

CITY OF MISSION, KANSAS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN YEARS (Modified Accrual Basis of Accounting)

TABLE 4 (UNAUDITED)

2006 2007 2008 2009 2010 2011 2012

6,597,014$ 7,395,843$ 7,336,009$ 7,064,955$ 6,927,357$ 6,690,601$ 6,571,139$ 106,173 95,035 101,563 90,492 16,725 11,200 10,426 666,570 4,007,306 6,014,026 3,674,723 1,147,837 2,354,879 548,344 147,398 199,545 322,449 161,865 132,871 158,156 134,743

2,102,420 2,341,354 2,480,423 2,801,599 2,793,683 4,616,065 4,597,873 1,564,082 1,903,327 1,861,780 2,171,144 1,851,040 1,640,415 1,868,248

710,936 612,662 175,208 37,475 4,282 2,348 4,227 392,427 281,947 275,087 1,212,405 415,230 187,679 428,373

12,287,020 16,837,019 18,566,545 17,214,658 13,289,025 15,661,343 14,163,373

1,916,208 1,975,256 2,199,511 1,912,691 1,907,311 1,925,928 1,721,635 2,722,207 3,079,884 3,326,584 3,473,046 3,438,881 3,710,722 3,652,781 2,403,996 2,574,231 2,247,005 3,489,138 3,335,084 2,113,493 2,048,877 2,521,622 2,381,770 2,387,785 2,475,261 2,477,811 2,434,362 2,407,179 8,542,329 22,198,096 9,219,468 3,899,569 2,673,142 5,545,434 2,244,246

4,685,000 5,985,000 8,345,000 28,400,000 12,365,000 2,976,408 2,450,000 48,919 90,494 59,190 - - - -

326,898 1,097,214 1,275,507 1,606,635 1,329,292 1,047,541 1,143,744 23,167,179 39,381,945 29,060,050 45,256,340 27,526,521 19,753,888 15,668,462

[10,880,159] [22,544,926] [10,493,505] [28,041,682] [14,237,496] [4,092,545] [1,505,089]

1,752,338 2,080,802 1,512,547 1,634,590 2,609,467 1,250,000 682,000 [1,752,338] [2,080,802] [1,512,547] [1,634,590] [2,609,467] [1,250,000] [682,000]

61,976 1,113 - - 105,663 - - - - [54,320] - - - - - - - - - - - - - - - - - - - - - - 273,507 520,911 -

12,590,000 11,010,000 17,650,000 22,910,000 10,145,000 4,925,000 4,360,000 12,651,976 11,011,113 17,595,680 22,910,000 10,524,170 5,445,911 4,360,000

1,771,817$ [11,533,813]$ 7,102,175$ [5,131,682]$ [3,713,326]$ 1,353,366$ 2,854,911$

34.60% 41.87% 45.90% 72.76% 54.93% 26.49% 25.62%

TABLE 5 (UNAUDITED)

Fiscal Year Property City Sales City Use County Sales County Use Franchise December 31, Tax Tax Tax Tax Tax Tax Total

2003 675,451$ 2,671,526$ 180,720$ 1,246,079$ 82,306$ 493,477$ 5,349,559$ 2004 733,974 3,060,411 418,364 930,994 231,826 749,315 6,124,884 2005 1,294,702 2,540,060 734,473 909,570 244,768 853,066 6,576,639 2006 1,371,573 2,571,130 465,239 1,003,059 256,828 929,185 6,597,014 2007 1,865,902 2,647,561 614,798 1,035,776 244,815 986,991 7,395,843 2008 1,989,582 2,625,275 461,553 1,097,660 139,494 1,022,445 7,336,009 2009 2,116,408 2,484,314 439,764 918,713 129,364 976,392 7,064,955 2010 1,942,716 2,475,013 471,969 897,296 129,150 1,011,213 6,927,357 2011 1,618,424 2,564,793 379,031 938,788 174,833 1,014,732 6,690,601 2012 1,562,195 2,482,815 372,011 1,002,287 174,692 977,139 6,571,139

Source: City of Mission, Kansas Basic Financial Statements.

CITY OF MISSION, KANSAS GENERAL GOVERNMENT TAX REVENUES BY SOURCE

LAST TEN YEARS

TABLE 6 (UNAUDITED)

Category 2009 2010 2011 2012 Auto sales, repairs, gasoline 264,802$ 297,058$ 336,701$ 232,132$ Clothing, department and shoe stores 432,385 415,520 438,675 453,851 Construction, home repairs, maintenance 84,602 67,472 53,265 58,198 Grocery/drug store 386,318 437,049 449,708 431,180 Medical 15,962 18,900 19,979 22,897 Restaurant/entertainment 424,966 389,738 431,435 412,674 Specialty 173,076 173,346 181,528 161,861 Utilities/communications 373,797 379,538 358,793 332,923 All other outlets 328,406 296,392 294,709 377,099

Total 2,484,314$ 2,475,013$ 2,564,793$ 2,482,815$

City Sales Tax Rate 1.25% 1.25%1.25% and 1.0% 1.25% and 1.0%

Note (1) - Data became available in 2009, therefore 10 years of data is unavailable.

Source: Kansas Department of Revenue.

Tax Collected

CITY OF MISSION, KANSAS LOCAL SALES TAX COLLECTIONS

LAST TEN YEARS (1)

Local Sales

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TABLE 7 (UNAUDITED)

Ratio of Assessed Total

Total Estimated Value Direct Assessment Budget Assessed Estimated Assessed Estimated Assessed Actual to Estimated Tax

Year Year Value Actual Value Value Actual Value Value Value Actual Value Rate

2002 2003 117,414,721$ 795,044,473$ 14,220,866$ 55,935,406$ 131,635,587$ 850,979,879$ 0.15 5.041 2003 2004 116,464,078 821,908,020 9,316,714 36,645,742 125,780,792 858,553,762 0.14 9.935 2004 2005 119,809,159 849,677,095 9,023,996 35,494,384 128,833,155 885,171,479 0.14 9.962 2005 2006 122,948,049 880,351,925 8,749,943 29,166,477 131,697,992 909,518,402 0.14 13.176 2006 2007 128,267,489 923,590,639 9,862,567 32,875,223 138,130,056 956,465,862 0.14 13.198 2007 2008 130,722,893 936,033,240 6,713,836 22,379,453 137,436,729 958,412,693 0.14 13.215 2008 2009 124,812,666 900,169,960 3,389,601 11,298,670 128,202,267 911,468,630 0.14 13.217 2009 2010 117,416,873 858,323,410 3,104,763 10,349,210 120,521,636 868,672,620 0.14 11.213 2010 2011 115,357,123 862,419,740 2,594,652 8,648,840 117,951,775 871,068,580 0.14 11.371 2011 2012 112,043,638 854,717,930 2,107,544 7,025,147 114,151,182 861,743,077 0.13 11.410

(1) - Information provided by the Johnson County Office of the County Appraiser.

CITY OF MISSION ASSESSED AND ESTIMATED ACTUAL VALUE

OF TAXABLE PROPERTY (1) LAST TEN YEARS

Real Property Personal Property Year Ended

December 31,

TABLE 8 (UNAUDITED)

Shawnee Johnson Storm General Total Mission County

Year Ended General Drain Obligation Direct Johnson School Community December 31, Fund Fund Fund Rate County District College

2003 5.041 0.000 0.000 5.041 16.3810 37.7740 9.432 2004 9.935 1.000 1.025 11.960 16.0410 42.6550 9.438 2005 9.962 1.003 1.028 11.993 17.9220 49.7480 8.960 2006 13.176 1.002 1.027 15.205 17.9490 51.9800 8.872 2007 13.198 1.004 1.029 15.231 17.9850 52.0080 8.749 2008 13.215 1.005 1.030 15.250 17.7670 52.0940 8.768 2009 11.182 1.005 1.030 13.217 17.7160 55.3180 8.784 2010 10.183 0.000 1.030 11.213 17.7480 57.1920 8.799 2011 10.326 0.000 1.045 11.371 17.7000 56.1350 8.776 2012 10.361 0.000 1.049 11.410 17.7000 56.1350 8.776

Information provided by the Johnson County, Kansas County Clerk's Annual Abstract of Taxes.

CITY OF MISSION, KANSAS PROPERTY TAX RATES PER $1,000 OF ASSESSED VALUATION

DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN YEARS

City

TABLE 8 (UNAUDITED)

Unified Johnson Consolidated Johnson Johnson County

Fire County County Parks and District #2 Sewer District Library Recreation Total

9.240 0.000 2.954 2.365 83.187 9.241 0.000 2.956 2.367 94.658 9.405 0.000 2.955 2.286 103.269 9.335 0.000 2.960 2.290 108.591 9.356 0.000 2.962 2.295 108.586 8.992 0.000 3.057 2.341 108.269 8.991 0.000 3.151 2.346 109.523

10.074 0.000 3.158 2.350 110.534 10.098 0.000 3.145 2.343 109.568 10.098 0.000 3.145 2.343 109.607

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TABLE 9 (UNAUDITED)

2012 % of Total 2002 % of Total Assessed Assessed Assessed Assessed

Taxpayer Type of Business Valuation Rank Valuation Valuation Rank Valuation

Scriptpro Medical equipment manufacturer 4,786,350$ 1 4.19% Bannister Realty Company, Inc. Property developer 2,302,751 2 2.02% Tower Properties Company Property developer 2,188,336 3 1.92% Broadmoor Place Associates Office building development 1,958,501 4 1.72% Southwestern Bell Telephone Telecommunications provider 1,955,644 5 1.71% Bridges at Foxridge NF L.L.C. Property developer 1,900,605 6 1.66% Silverwood Apartments, L.L.C. Real estate 1,785,720 7 1.56% Mission Mart Shopping Center Shopping center 1,742,741 8 1.53% Sixty Three W est Investors Property developer 1,670,251 9 1.46% Block Properties Company Property developer 1,650,002 10 1.45%

Total 21,940,901$ 19.22%

Source: Johnson County Clerks Office.

CITY OF MISSION, KANSAS PRINCIPAL TAXPAYERS

December 31, 2012 and Nine Years Ago

Not Available

TABLE 10 (UNAUDITED)

Ratio of Total Current Percent of Delinquent Total Tax

Year Ended Tax Taxes Current Taxes Tax Total Tax Collections December 31, Levy Collected Collected Collections Collections to Tax Levy

2003 614,437$ 607,533$ 98.9% 6,478$ 614,011$ 99.9% 2004 613,444 606,265 98.8% 4,766 611,031 99.6% 2005 1,245,425 1,201,481 96.5% 5,735 1,207,216 96.9% 2006 1,280,090 1,255,976 98.1% 5,265 1,261,241 98.5% 2007 1,733,032 1,697,828 98.0% 30,411 1,728,239 99.7% 2008 1,821,495 1,685,188 92.5% 104,970 1,790,158 98.3% 2009 1,814,496 1,776,342 97.9% 36,912 1,813,254 99.9% 2010 1,694,787 1,657,376 97.8% 12,236 1,669,612 98.5% 2011 1,351,409 1,320,407 97.7% 29,563 1,349,970 99.9% 2012 1,341,230 1,321,097 98.5% 9,484 1,330,581 99.2%

CITY OF MISSION, KANSAS PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN YEARS

TABLE 11 (UNAUDITED)

Debt As A General Capital Special Capital Debt Percentage

Fiscal Obligation Temporary Improvement Assessment Loans Leases City Personal Per of Personal Year Bonds Notes Bonds Bonds Bonds Payable Total Population Income Capita Income

2003 5,265,000$ 1,200,000$ -$ 120,000$ -$ -$ 6,585,000$ 10,020 279,257,400$ 657 2.36% 2004 5,755,000 1,295,000 1,160,000 105,000 - - 8,315,000 10,020 279,257,400 830 2.98% 2005 11,219,598 4,346,029 1,010,000 90,000 - 188,136 16,853,763 10,020 279,257,400 1,682 6.04% 2006 9,725,138 13,946,976 860,000 75,000 - 144,530 24,751,644 10,020 279,257,400 2,470 8.86% 2007 9,050,680 19,771,525 700,000 60,000 - 66,200 29,648,405 10,020 279,257,400 2,959 10.62% 2008 7,951,220 30,265,805 535,000 45,000 - 136,823 38,933,848 10,020 279,257,400 3,886 13.94% 2009 29,666,760 3,231,666 365,000 30,000 - 122,359 33,415,785 10,020 328,701,011 3,335 10.17% 2010 30,800,663 - 185,000 20,000 273,507 67,336 31,346,506 9,323 328,701,011 3,362 9.54% 2011 32,748,611 485,000 - 10,000 99,864 407,344 33,750,819 9,323 328,701,011 3,620 10.27% 2012 34,625,964 485,000 - - 95,887 265,454 35,472,305 9,323 328,701,011 3,805 10.79%

Source: Johnson County Clerk and City of Mission Records.

CITY OF MISSION, KANSAS OUTSTANDING DEBT BY TYPE

LAST TEN YEARS

TABLE 12 (UNAUDITED)

CITY OF MISSION, KANSAS RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED

VALUE AND NET GENERAL OBLIGATION DEBT PER CAPITA LAST TEN YEARS

Ratio of Net

Less Bonded Net Gross Debt Net Debt to Bonded

Year Ended Assessed Bonded Service Bonded Assessed Debt per December 31, Population(1) Value Debt Fund Debt Value Capita

2003 10,020 131,635,587$ 6,585,000$ 509,195$ 6,075,805$ 4.62% 606.37$ 2004 10,020 125,780,792 5,860,000 572,955 5,287,045 4.20% 527.65 2005 10,020 128,833,155 11,309,598 623,320 10,686,278 8.29% 1,066.49 2006 10,020 131,697,992 9,800,138 678,017 9,122,121 6.93% 910.39 2007 10,020 138,130,056 9,110,680 722,400 8,388,280 6.07% 837.15 2008 10,020 137,436,729 7,996,220 857,622 7,138,598 5.19% 712.43 2009 10,020 128,202,267 29,696,760 941,397 28,755,363 22.43% 2,869.80 2010 9,323 120,521,636 30,820,663 791,098 30,029,565 24.92% 3,221.02 2011 9,323 117,951,775 32,758,611 550,988 32,207,623 27.31% 3,454.64 2012 9,323 114,151,182 34,625,964 63,337 34,562,627 30.28% 3,707.24

(1) Information provided by the Johnson County Economic Research Institute.

TABLE 13 (UNAUDITED)

CITY OF MISSION, KANSAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

December 31, 2012

Percentage Amount Applicable Applicable

Net Debt to City of to City of Name of Governmental Unit Outstanding Mission Mission

Direct debt: City of Mission, Kansas 35,472,305$ 100.00% 35,472,305$

Overlapping debt: (1) Johnson County 290,901,089 1.51% 4,392,606 Shawnee Mission School (U.S.D. 512) 207,765,000 3.97% 8,248,271 Fire District #2 1,070,000 15.82% 169,274 Johnson County Parks and Recreation 3,000,000 1.51% 45,300

Total overlapping debt 502,736,089 12,855,451

Total direct and overlapping debt 538,208,394$ 48,327,756$

(1) Information provided by Johnson County Clerk's Office.

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the overlapping debt of those overlapping governments that is borne by the resident and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.

For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value. This approach was also applied to the other debt of the overlapping governmental units.

TABLE 14 (UNAUDITED)

2003 2004 2005 2006

Total Assessed Valuation of Taxable Property 131,635,587$ 125,780,792$ 128,833,155$ 144,047,030$

Debt Limit Percent of Assessed Value 30.00% 30.00% 30.00% 30.00%

Debt Limit 39,490,676 37,734,238 38,649,947 43,214,109

Total net debt applicable to limit 6,585,000 5,860,000 11,309,598 9,800,138

Legal Debt Margin 32,905,676$ 31,874,238$ 27,340,349$ 33,413,971$

Total Net Debt Applicable To The Limit As A Percentage of Debt Limit 16.67% 15.53% 29.26% 22.68%

Note 1: Total Assessed Valuation of Taxable Property on This Table Includes Motor Vehicle Assessed Valuation.

Note 2: Under State finance law, the City's outstanding general obligation debt should not exceed 30 percent of the total assessed property value.

Source: Assessed valuation from Johnson County Clerk.

CITY OF MISSION, KANSAS COMPUTATION OF LEGAL DEBT MARGIN

LAST TEN YEARS

TABLE 14 (UNAUDITED)

2007 2008 2009 2010 2011 2012

150,542,400$ 149,689,527$ 140,390,464$ 132,076,558$ 129,270,218$ 125,513,832$

30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

45,162,720 44,906,858 42,117,139 39,622,967 38,781,065 37,654,150

9,110,680 7,996,220 2,915,000 2,740,000 6,535,000 9,865,000

36,052,040$ 36,910,638$ 39,202,139$ 36,882,967$ 32,246,065$ 27,789,150$

20.17% 17.81% 6.92% 6.92% 16.85% 26.20%

TABLE 15 (UNAUDITED)

Per Capita Unemployment Personal Personal

Fiscal Year Population (1) Rate (1) Income (2) Income

2003 10,020 3.9% 27,870$ 279,257,400$ 2004 10,020 4.3% 27,870 279,257,400 2005 10,020 4.5% 27,870 279,257,400 2006 10,020 4.1% 27,870 279,257,400 2007 10,020 3.9% 27,870 279,257,400 2008 10,020 4.4% 27,870 279,257,400 2009 10,020 6.3% 27,870 279,257,400 2010 9,323 6.8% 35,257 328,701,011 2011 9,323 6.0% 35,257 328,701,011 2012 9,323 5.4% 35,257 328,701,011

(1) Obtained from Johnson County Economic Research Institute and Bureau of Census. Unemployment rates are for Johnson County.

(2) Information compiled every ten years.

CITY OF MISSION, KANSAS DEMOGRAPHIC STATISTICS

LAST TEN YEARS December 31, 2012

TABLE 16 (UNAUDITED)

Employer Employees Rank

Percentage of Total

Employment Employees

(1) Rank

Percentage of Total

Employment

ScriptPro 500 1 4.99% Not Available 0.00% AT&T Telecommunications 400 2 3.99% Not Available 0.00% Skillpath, Inc. 250 3 2.50% Not Available 0.00% HyVee Food Stores 275 4 2.74% Not Available 0.00% U.S. Post Office 250 5 2.50% Not Available 0.00% Entercom 250 6 2.50% Not Available 0.00% City of Mission (2) 221 7 2.21% Not Available 0.00% Ace Personnel 200 8 2.00% Not Available 0.00% Geneva Roth Ventures 175 9 1.75% Not Available 0.00% Target 150 10 1.50% Not Available 0.00% Packaging Products Corp 120 10 1.20% Not Available 0.00% Cumulus Broadcasting (3) 100 10 1.00% Not Available 0.00% Total 2,891 28.85% - 0.00%

(1) Information not available. (2) Includes full and part time. (3) Formerly Susquehanna, Inc.

Source: Northeast Johnson County Economic Development Council.

December 31, 2012 December 31, 2003

CITY OF MISSION, KANSAS PRINCIPAL EMPLOYERS

December 31, 2012 and Nine Years Ago

TABLE 17 (UNAUDITED)

Function/Program 2006 2007 2008 2009 2010 2011 2012 Public Safety/Municipal Justice 911 Calls Received 9,003 10,756 9,128 8,432 10,583 9,150 10,004 DUI Arrests 213 363 335 441 317 328 254 Traffic/Parking Complaints 16,858 17,964 17,350 20,745 16,947 14,471 15,360 Accidents 316 351 287 252 234 294 272 Investigations Cases 714 744 702 668 732 543 450 Total Court Cases Processed 17,690 19,027 17,574 18,849 17,158 14,760 16,624

Public Works Curb Miles Swept (lane miles) 296 222 797 1,263 925 1,416 880 Streets Milled and Overlaid (Linear Feet) 1,200 2,850 9,386 2,540 4,953 13,330 8,417 Sidewalk Replaced (Square Yards) 550 550 1,330 341 1,619 6,015 455 Curb and Gutter Replaced (Linear Feet) 2,900 6,499 4,920 222 3,642 11,266 4,965 Acres of Lawn Mowed 4,224 1,056 1,056 1,240 1,240 1,240 1,240

Urban Management and Planning Building Permits Processed 36 60 130 161 251 281 409 Plan Reviews Performed 20 18 20 20 26 17 14

Leisure and Recreation Annual Memberships Sold 937 2,294 2,314 2,520 2,871 2,115 2,031 Annual Membership Revenue 1,054,374 1,028,942 1,022,691 952,658 941,704 932,068 872,878 Facility Reservations Processed 1,960 1,111 735 1,012 846 906 1,027 Facility Reservation Revenue 168,119 172,469 189,378 247,984 214,995 209,024 221,259 Pool Memberships Sold 261 230 232 315 349 323 262 Pool Revenue 53,504 54,425 57,265 63,998 67,880 55,932 57,339

(1) Data not maintained by specific function prior to 2006.

Source: City of Mission, Kansas.

CITY OF MISSION, KANSAS OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST SEVEN YEARS (1) December 31, 2012

TABLE 18 (UNAUDITED)

Function/Program 2012 2011 2010 2009 2008 2007 2006 2005 General Government Administration/Finance* 5.0 5.0 7.0 7.0 7.0 6.0 6.0 6.0 Community Development* 5.0 5.0 3.0 3.0 3.0 2.0 2.0 2.0 Municipal Court* 4.0 4.0 4.0 4.0 4.0 3.0 3.0 3.0

Public Works* 11.0 11.0 11.0 11.0 12.0 14.0 14.0 14.0

Police 31.0 31.0 31.0 31.0 30.0 30.0 30.0 29.0

Parks & Recreation* 12.0 12.0 12.0 13.0 13.0 14.0 14.0 14.0

Total 68.0 68.0 68.0 69.0 69.0 69.0 69.0 68.0

*Data not maintained by specific function prior to 2005.

Source: City of Mission, Kansas.

CITY OF MISSION, KANSAS FULL TIME CITY EMPLOYEES BY FUNCTION/PROGRAM

LAST EIGHT YEARS

TABLE 19 (UNAUDITED)

Function/Program 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Police Stations 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0

Public Works Miles of streets 44.7 44.7 44.7 44.7 44.7 44.7 44.7 44.7 44.7 44.7 Streetlights 805.0 805.0 850.0 850.0 850.0 850.0 850.0 850.0 850.0 850.0

Parks & Recreation Parks 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 Park acreage 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 Pools 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Tennis Courts 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Community Center 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0

Source: City of Mission, Kansas.

CITY OF MISSION, KANSAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM

LAST TEN YEARS