2022-2023 ACFR by cityofindepmo

Annual Comprehensive Financial Report

For the Fiscal Year Ended June 30, 2023

CITY OF INDEPENDENCE, MISSOURI

ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2023

Mayor Rory Rowland City Council John Perkins Brice Stewart Vacant Dan Hobart Bridget McCandless Jared Fears

District #1 District #2 District #3 District #4 At-large At-large

City Manager Zachary Walker Prepared by the Department of Finance Cindy Gray, Director of Finance Nancy Cooper, Special Projects & Reporting Manager

CITY OF INDEPENDENCE, MISSOURI Table of Contents

Page Introductory Section: Organizational Chart Letter of Transmittal GFOA Certificate of Achievement

1 2-6 7

Financial Section: Independent Auditors’ Report Management’s Discussion and Analysis

8 - 11 12 - 23 Exhibit

Basic Financial Statements: Government-wide: Statement of Net Position Statement of Activities Fund Financial Statements: Governmental Funds: Balance Sheet Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Statement of Revenues, Expenditures, and Changes in Fund Balances Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Proprietary Funds: Statement of Net Position Statement of Revenues, Expenses, and Changes in Fund Net Position Statement of Cash Flows Fiduciary Funds: Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position

1 2

24 25

3.1 4

27 28

4.1

5 6 7

30 31 32

8 9

33 34

Notes to Financial Statements

35 - 97

Required Supplementary Information: Budgetary Comparison Schedule – General Fund Budgetary Comparison Reconciliation Schedule – General Fund Notes to Budgetary Comparison Schedules Schedule of Changes in Total OPEB Liability and Related Ratios LAGERS Schedule of Changes in Net Pension Liability and Related Ratios LAGERS Schedule of Contributions

10 10.1 11 12 13

98 99 100 101 102 103

CITY OF INDEPENDENCE, MISSOURI Table of Contents

Supplementary Information: Combining Balance Sheet – Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds Combining Balance Sheet – Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Special Revenue Funds Budgetary Comparison Schedules Tourism Fund Community Development Block Grant Fund Rental Rehabilitation Fund Street Improvement Sales Tax Fund Park Improvement Sales Tax Fund Storm Water Sales Tax Fund Police Public Safety Sales Tax Fund Fire Protection Sales Tax Fund Grants Fund American Rescue Plan Act (ARPA) Fund Animal Services Use Tax Fund Police Use Tax Fund Health Property Tax Levy Fund Parks and Recreation Property Tax Levy Fund Combining Balance Sheet – Nonmajor Sales Tax Fund Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Sales Tax Funds Combining Balance Sheet – Nonmajor Capital Projects Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficit) – Nonmajor Capital Projects Funds Combining Balance Sheet – Component Unit – Tax Increment Financing Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances (Deficit) – Component Unit – Tax Increment Financing Combining Statement of Net Position – Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds Combining Statement of Cash Flows – Internal Service Funds Combining Statement of Fiduciary Funds – Custodial Funds Combining Statement of Changes in Fiduciary Net Position – Custodial Funds Schedules of Operating Expenses – Power and Light Fund Schedule of Operating Statistics – Power and Light Fund Schedules of Operating Expenses – Water Fund Schedule of Operating Statistics – Water Fund Schedule of Operating Statistics – Sanitary Sewer Fund ii

Exhibit

Page

104

15 16

105 106

107

18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

108 - 109 110 - 111 112 - 113 114 - 115 116 - 117 118 - 119 120 - 121 122 - 123 124 - 125 126 - 127 128 - 129 130 - 131 132 - 133 134 - 135 136

33 34

137 138

35 139 36 140 - 141 37 142 - 143 38 144 39 40 41

145 146 147

42 148 43 149 - 150 44 151 45 152 46 153 47 154

CITY OF INDEPENDENCE, MISSOURI Table of Contents

Table Statistical Data (Unaudited): Net Position by Component Changes in Net Position Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Sales and Use Tax Revenue Sales Tax Rates Direct and Overlapping Governments Assessed Value and Estimated Actual Value of Taxable Property Property Tax Rates Direct and Overlapping Debt Principal Property Taxpayers Property Tax Levies and Collections Utility Sales by Category Utility Rates by Category Principal Utility Payers – Power and Light Principal Utility Payers – Water Principal Utility Payers – Sewer Ratios of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Legal Debt Margin Information Pledged-Revenue Coverage Demographic and Economic Statistics Principal Employers Full-time Equivalents City Government Employees by Function/Program Operating Indicators by Function/Program Capital Asset Statistics by Function/Program

iii

Page

1 156 2 157 - 158 3 159 4 160 5 161 6 162 7 163 8 164 9 165 10 166 11 167 12 168 13 169 14 170 15 171 16 172 17 173 18 174 19 175 20 176 21 177 22 178 23 179 24 180 25 181

City Organizational Chart Citizens of Independence

Mayor & City Council

Management Analyst

Municipal Court

Boards & Commissions

City Clerk

City Manager Zach Walker Deputy City Manager Adam Norris Municipal Services

Health & Animal Services

Finance & Administration

Fire

Public Utilities

Community Development

Parks, Recreation & Tourism

Police

December 21, 2023 Honorable Mayor, Members of the City Council, and Citizens of the City of Independence, Missouri The Finance Department is pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Independence, Missouri, for the fiscal year ended June 30, 2023. This report is submitted to you for your review in compliance with the provisions of Article 3, Section 3.34 of the City Charter. The responsibility for accuracy, completeness and fairness of the data presented, including all disclosures, rests with the City. We believe the report, as presented, is accurate in all material aspects and is presented in a manner designed to fairly set forth the financial position and the results of the City, on a Governmentwide and Fund basis. It is our belief that all disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included. To enhance the reader’s understanding of these financial statements, note disclosures have been included as an integral part of this document. This report was prepared by the City’s Finance Department staff in accordance with generally accepted accounting principles (GAAP), which are uniform minimum standards and guidelines for financial accounting and reporting in the United States. This report is intended to provide sufficient information to permit the assessment of stewardship and accountability and to demonstrate legal compliance. The City of Independence’s financial statements, as required by the Charter, have been audited. The independent audit was conducted by RubinBrown, LLP. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Independence for fiscal year ended June 30, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Independence’s financial statements for the fiscal year ended June 30, 2023, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City of Independence was part of a broader, federally mandated “Single Audit” designed to meet the special needs of Federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and compliance with legal requirements involving the administration of federal awards. These reports are available in the separately issued Single Audit Report.

In fulfilling its responsibilities for reliable financial statements, management depends on the City's system of internal control. This system is designed to provide reasonable assurance that assets are effectively safeguarded and that transactions are executed in accordance with management's authorization and are properly recorded. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. In addition to the independent audit and the internal control system, the Charter provides that the Council appoint a Management Analyst. The Management Analyst performs such duties as directed by the Council. These duties include the continuous review of all departments, and the preparation of an annual report to the Council concerning the methods and results of the operations of the reviewed departments. The Audit and Finance Committee, comprised of three members of the Council, acts in an advisory capacity to the Council and reviews financial information for appropriateness, reliability, clarity, timeliness and compliance with generally accepted accounting principles and legal requirements. In addition, this committee reviews the audit functions and adequacy of internal control systems. GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Independence’s MD&A can be found immediately following the report of the independent auditor. Profile of the City Incorporated in 1849, the City of Independence is the county seat of Jackson County and borders on the eastern edge of Kansas City, Missouri. Independence has a rich history as The Queen City of the Trails and former home of Harry S. Truman, 33rd President of the United States. Independence is the fifth largest city in Missouri with an estimated population of 121,211. As the beginning of the Santa Fe, Oregon, and California Trails, the City has 16 heritage attractions including the Harry S. Truman Library and Museum, the Truman Home, Victorian mansions, 1859 Jail and Marshal’s Home, the National Frontier Trails Museum, historic square, and religious sites. Patricia Schultz included several tourism attractions in Independence in her travel book, 1,000 Places to See in the United States and Canada Before You Die. Its central location in the "Heart of America" offers residents and businesses unique location advantages and means that traveling, shipping, receiving and communications are more economical because of shorter distances to most parts of the country. Situated along major interstate highways (I-70, I-49, I-35, I-29) and rail routes, access to Independence from all parts of the nation, as well as Canada and Mexico, is excellent. The City’s 78 square miles accommodate its residents and numerous businesses with 32 square miles of mixed-use land in eastern Independence available for development. The City of Independence is home to Lake City Army Ammunition Plant, the largest small-caliber ammunition manufacturing plant in the world. Lake City is one of the largest employers in Independence and encompasses 458 buildings on 3,935 acres. Independence is home to the Harry S. Truman Presidential Museum & Library, one of only fifteen in the nation. There are six major industrial and business parks in Independence. A large portion of the manufacturing, warehousing and office space is located underground in three separate, sub-surface business parks. This area has over 750 acres of mixeduse business parks with over 32 million square feet of industrial space, underground warehousing, and a cold storage facility with 1.2 million square feet.

The City of Independence is organized, as a constitutional charter city under the Missouri statutes utilizing the Council-Manager form of government. In accordance with the charter, the registered voters within the City elect a mayor and six council members to serve four-year terms as representatives on the City Council. An election for four districts is conducted as a unit, while elections for mayor and two atlarge seats are conducted two years later. The Council appoints a City Manager to serve as the chief administrative officer of the City. The City of Independence provides a comprehensive range of municipal services including police and fire protection, public works services, public health services, parks and recreation facilities, general administrative services, and a trails history museum. The City also provides electric, water, and sanitary sewer services, all of which are accounted for in the financial statements as business-type activities. In evaluating the City as a reporting entity, management has considered all potential component units. Determination of whether an entity is controlled by, or dependent on, the City is made on the basis of budget adoption, taxing authority, outstanding debt secured by revenues or general obligations of the City, or the City’s obligation to fund any deficit that may occur. As allowed by accounting principles generally accepted in the United States of America, the City has included the Tax Increment Financing Debt Service (TIF), Independence Events Center Management Corporation (IECMC), Cable Dahmer Arena – Oak View Group (formerly known as Spectra Venue Management), Events Center Community Improvement District (CID) and the Crackerneck Creek Transportation Development District’s (TDD) activities in its financial statements as blended component units. The annual budget serves as the foundation for the City of Independence’s financial planning and control. The appropriated budget is prepared by fund, function (e.g. public safety), and department (e.g. police). Department heads may make transfers of appropriations within their department. Transfers of appropriations between departments, however, require approval of the City Council. Budget-to-actual comparisons for the General and Special Revenue Funds are required and included in this report for each individual governmental fund for which an appropriated annual budget has been adopted. The Special Revenue Funds with an adopted budget include the Tourism, Community Development Block Grant, Rental Rehabilitation, Street Improvements Sales Tax, Parks Improvements Sales Tax, Storm Water Sales Tax, Police Public Safety Sales Tax, Fire Protection Sales Tax, Grants, American Rescue Plan Act, Animal Shelter Use Tax, Police Use Tax, Health Property Tax Levy, and Parks and Recreation Property Tax Levy funds. Purchase orders and contracts are encumbered prior to their release to vendors. Any item, which would result in expenditures in excess of a department’s budget, is not released until alternative sources of payment are made available. Open encumbrances as of June 30, 2023, are reported as committed and assigned fund balance since the City intends to honor the purchase orders and contracts. Local economy The City is continuing to experience growth on the eastern side of town. The I-70 interchange has made the Little Blue Parkway the professional business corridor of the 21st Century. This is due to a strong business climate and a history of successful development efforts utilizing Tax Increment Financing (TIF). This area has three million square feet of retail development, two million of which has been built since 1995. The Little Blue Parkway is located in the heart of a fast growing commercial area. This area is home to the Cable Dahmer Arena, formerly known as the Independence Events Center which includes an arena with 5,800 seats for sports with additional seating for concerts and a separate community ice rink. The Arena opened in November 2009, providing approximately 120 new jobs. The Cable Dahmer Arena is home to the Central Hockey League franchise the Kansas City Mavericks and Major Indoor Soccer League the Comets. The Kansas City Mavericks have a signed contract, with the Arena, that expires in 2024 and the Comets contract expires in April 2025.

The following table sets forth average annual unemployment figures for Independence and Jackson County, compared to the State of Missouri.

Year

City Unemployment Rate

Jackson County Unemployment Rate

Statewide Unemployment Rate

2023* 2022 2021 2020 2019

3.4% 3.2% 6.4% 8.0% 4.0%

3.4% 2.9% 5.5% 7.1% 3.7%

3.3% 2.5% 4.4% 6.1% 3.3%

Source: MERIC MO Economic Research and Information Center/MO Dept of Economic Development *Average estimated thru June 2023

Long-term financial planning The City of Independence prepares a five-year financial projection of our financial condition, which includes capital outlay projections as well as a six-year Capital Improvements Program (CIP). The CIP includes proposed projects for constructing, maintaining, upgrading, and replacing the City’s physical infrastructures. The budget for fiscal year 2023-24 includes projects totaling an estimated $59.9 million for capital projects. In preparing the capital budget, needs are assessed, public improvements are prioritized and costs are projected. This budget is reviewed annually and projects are re-prioritized and the financial condition of the City is evaluated. Many of the streets improvements, parks improvements and storm water projects are funded by the voter approved street, parks, and storm water sales taxes.

Relevant financial policies Effective July 1, 2017, the City’s financial policy to maintain an unassigned fund balance level in the General Fund increased from 5.0% to 16.0% of annual revenues and transfers from utilities for payments in lieu of taxes (PILOTS). At the close of the 2022-23 fiscal year, the unassigned fund balance in the General Fund was 12.9% of the General Fund revenues and utility PILOTS. This is an increase of 4.7% from the 2021-22 amount of 8.2%. If the target level of unassigned fund balance is not being met or is unlikely to be met within five years, it is the City’s policy to establish a plan to replenish the unassigned fund balance during the annual budget process. In previous years, the City Manager has not funded vacant positions in an effort to reduce salary and benefit costs, and departments have been asked to reduce expenditures in an effort to reduce costs.

Awards and Acknowledgements 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 of Independence for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2022. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable, efficiently organized annual comprehensive financial report, the contents of which conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements.

Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting Presented to

City of Independence Missouri For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2022

Executive Director/CEO

Independent Auditors’ Report The Honorable Mayor and Members of the City Council City of Independence, Missouri Report On The Audit Of The Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Independence, Missouri (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, based on our audit and the report of other auditors, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America (GAAP). We did not audit the financial statements of Cable Dahmer Arena (Arena), which is a blended component unit presented within the Events Center Fund, a major enterprise fund of the City. This activity represents 2.1 percent and 38.2 percent, respectively, of the total assets and total revenues of the major enterprise fund and 0.2 percent and 2.5 percent, respectively, of the total assets and total revenues of the business-type activities. Those statements were audited by another auditor, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Arena, is based solely on the report of the other auditor.

The Honorable Mayor and Members of the City Council City of Independence, Missouri

Basis For Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities For The Audit Of The Financial Statements section of our report. The financial statements of the Arena were not audited in accordance with Government Auditing Standards. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis Of Matter As discussed in Note 1 to the financial statements, the City implemented the provisions of Governmental Accounting Standards Board Statement Number 96, Subscription-Based Information Technology Arrangements. Our opinion is not modified with respect to this matter. Responsibilities Of Management For The Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with GAAP, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities For The Audit Of The Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

Page 9

The Honorable Mayor and Members of the City Council City of Independence, Missouri

In performing an audit in accordance with GAAS and Government Auditing Standards, we: • •

•

• •

Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information GAAP requires that the Management’s Discussion and Analysis on pages 12 through 23, the Budgetary Comparison Schedules listed as exhibits 10 and 10.1 and the Pension and Other Post Employments Benefits information listed as exhibits 11 through 13, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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.

Page 10

The Honorable Mayor and Members of the City Council City of Independence, Missouri

Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements and schedules, budgetary comparison schedules and other schedules listed as exhibits 14 through 42 are presented for the purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections and schedules included as exhibits 43 through 47 but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required By Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2023 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

December 21, 2023

Page 11

CITY OF INDEPENDENCE, MISSOURI Management’s Discussion and Analysis June 30, 2023 This section of the City of Independence’s Annual Comprehensive Financial Report presents our review of the City’s financial performance during the fiscal year that ended on June 30, 2023. Please read it in conjunction with the transmittal letter at the front of this report and the City’s financial statements, which follow this section. Financial Highlights The City’s total net position increased $52.5 million to a total of $476.5 million. The City’s governmental activities had an increase of $20.5 million and the business-type activities had an increase of $32.0 million. The increase in governmental activities was mostly due to changes in the deferred inflows and outflows of resources for the City’s net pension liability which increased net position by $20.9 million and the Other Post-Employment Benefits (OPEB) which increased net position by $1.3 million. The increase in business-type activities was also due to changes in the deferred inflows and outflows of resources for the City’s net pension liability which increased net position by $13.2 million and OPEB which increased net position by $589,375. Revenues were also higher for the business-type funds by $17.8 million. Sales and use tax revenue increased by $12.8 million or 19.1%. Sales tax and transient guest tax revenue made up about $10.7 million of the increase. The remainder of the increase was due to the City’s use tax for on-line sales of goods delivered within the City. Total charges for services for the City increased $10.0 million or 4.3%, with the business-type activities increasing $13.1 million or 6.1% and the governmental funds decreasing by $3.1 million or 17.9%. The increase for the business-type activities is primarily due to Power and Light’s operating revenue increase to fuel charge adjustments and weather conditions. The decrease for the governmental funds is due to lower building permit revenue where in fiscal year 2022 there were several larger construction projects and in fiscal year 2023 the building permit revenue came back down to more historical amounts. There were also lower interfund revenues for support services in the General Fund due to moving the Finance and Support Services departments out of the General Fund and into an Internal Service Fund. Overview of the Financial Statements This annual report consists of four parts: Management’s Discussion and Analysis, the basic financial statements, required supplementary information, and an optional section that presents combining statements for non-major governmental funds and internal service funds. The basic financial statements include two kinds of statements that present different views of the City: •

The government-wide financial statements (Statement of Net Position and Statement of Activities) provide both long-term and short-term information about the City’s overall financial status.

•

The fund financial statements focus on individual segments of the City’s operations and report in more detail than the government-wide statements: o

The governmental funds statements detail how general government services, like public safety, were financed in the short-term, as well as, what remains for future spending. The focus of these reports is to show the ability of the City to provide governmental services with current resources.

Proprietary fund statements offer short-term and long-term financial information about the activities the City operates like a business, such as the Power and Light system, Water system, Sanitary Sewer system, and the Cable Dahmer Arena. The focus of these reports is to show the economic resources, or value, of these operations.

CITY OF INDEPENDENCE, MISSOURI Management’s Discussion and Analysis June 30, 2023 o

Fiduciary fund statements provide information about financial relationships for which the City acts solely as a trustee or agent for the benefit of others, to whom the underlying resources belong, such as the Seniors’ Travel Fund, and Flexible Figure MD-1 Benefit Plan Fund. CITY OF INDEPENDENCE, MISSOURI

The financial statements also include notes that provide additional explanatory information to the financial statements. The statements are followed by a section of required supplementary information, which explains and supports the information in the financial statements. Figure MD-1 shows how the required parts of this annual report are arranged and relate to one another.

Required Components of the Annual Financial Report

Manage me nt's Discussion and Analysis

Basic Financial State me nts

Re quire d Supple me ntary Information

Governmentwide Financial Statements

Fund Financial Statements

Notes to the Financial Statements

In addition to these required elements, we have included a section with combining statements that provide details about our non-major governmental funds and internal service funds, each of which are added together and presented in single columns in the basic financial statements. Figure MD-2 summarizes the components of the City’s financial statements, including the segment of the City government covered and the types of information contained within the report. The remainder of this section explains the structure and content of each of the statements.

Summary

Detail

Figure MD-2 CITY OF INDEPENDENCE, MISSOURI Major Features of the Government-wide and Fund Financial Statements Fund Statements Proprietary Funds

Government-Wide Statements

Governmental Funds

Scope

Entire City government (except fiduciary funds)

The activities of the City that are not proprietary or fiduciary, such as police, fire, and parks

Activities the City operates similar to private businesses, such as: electric, water, sanitary sewer, and the Events Center

Instances in which the City is the trustee or agent for someone else's resources

Required financial statements

* Statement of net position * Statement of activities

* Balance Sheet * Statement of revenues, expenditures, and changes in fund balances

* Statement of net position * Statement of revenues, expenses, and changes in net position *Statement of cash flows

* Statement of fiduciary net position *Statement of changes in fiduciary net position

Accounting basis and measurement focus

Accrual accounting and economic resources focus.

Modified accrual accounting and current financial resources focus

Accrual accounting and economic resources focus

Type of asset/liability information

All assets and liabilities, both financial and capital, and shortterm and long-term

Only assets expected to be used up and liabilities that come due during the year or soon thereafter, no capital assets included

All assets and liabilities, both financial and capital, and short-term and longterm

All assets and liabilities, both shortterm and long-term; the City's funds do not currently contain capital assets, although they could if applicable

Type of inflow/outflow information

All revenues and expenses during year, regardless of when cash is received or paid

Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter

All revenues and expenses during year, regardless of when cash is received or paid

Fiduciary Funds

CITY OF INDEPENDENCE, MISSOURI Management’s Discussion and Analysis June 30, 2023

Government-wide Statements The government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the government’s assets, liabilities, and deferred inflows/outflows of resources. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid. The two government-wide statements report the City’s net position and how it has changed during the year. The term “net position” refers to the difference between the City’s assets, liabilities, and deferred inflows/outflows of resources and is one way to measure the City’s financial health or position. •

Over time, increases or decreases in the City’s net position are an indicator of whether its financial health is improving or deteriorating, respectively.

•

To further assess the overall health of the City, additional non-financial factors should be considered, such as changes in the City’s property tax base or the condition of the City’s roads.

The government-wide financial statements of the City are divided into two categories: •

Governmental activities – Most of the City’s basic services are included here, such as the police, fire, municipal services, and parks departments, as well as general administration. Property taxes, sales taxes, and state and federal grants finance most of these activities.

•

Business-type activities – The City charges fees to customers to provide certain services. The City’s Power and Light, Water, Sanitary Sewer, and Events Center funds are included here.

Fund Financial Statements The fund financial statements provide more detailed information about the City’s most significant funds, and do not represent the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for particular purposes. Some funds are required by the City’s Charter, State Statutes, and/or bond covenants. The Council establishes other funds to control and manage money for particular purposes or to show proper use of certain taxes and grants. The City has three kinds of funds: •

Governmental funds – Most of the City’s basic services are included in governmental funds, which focus on (1) how cash and other financial assets, that can readily be converted to cash, flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental fund statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide a reconciliation for the governmental funds statement, on a subsequent page that explains the relationship (or differences) between the fund statement and the government-wide statement.

CITY OF INDEPENDENCE, MISSOURI Management’s Discussion and Analysis June 30, 2023 •

•

Proprietary funds – Business operations for which the City charges customers a fee are generally reported in proprietary funds. Proprietary funds, like the government-wide statements, provide both long-term and short-term financial information. o

The City’s enterprise funds are the same as its business-type activities, but provide more detail and additional information, such as cash flows.

The City uses internal service funds to report activities that provide supplies and services for the City’s other programs and activities. The City has five internal service funds. These are the selffunded Staywell Health Insurance fund, Central Garage fund, Workers’ Compensation fund, Risk Management fund, and the Finance and Support Services fund.

Fiduciary funds – Periodically, the City may be responsible for other assets that have been given to the City under the terms of a trust agreement initiated by an outside third party. Generally, these funds are limited in use for the benefit of the designated trust beneficiary. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. Currently, the City is the trustee, or fiduciary, for the following funds: Susie Paxton Block Trust Fund, Seniors’ Travel Fund, and the Flexible Benefit Plan Fund. All of the City’s fiduciary activities are reported in the Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. We exclude these activities from the City’s governmentwide financial statements because the City cannot use these assets to finance its operations.

CITY OF INDEPENDENCE, MISSOURI Management’s Discussion and Analysis June 30, 2023 FINANCIAL ANALYSIS OF THE CITY AS A WHOLE Net Position The following Table (MD-1) reflects the condensed Statement of Net Position: Table MD-1 CITY OF INDEPENDENCE, MISSOURI Net Position Governmental Activities

Business-Type Activities

Total

2023

2022

2023

2022

2023

2022

167,486,206 297,171,440 464,657,646

133,370,066 300,746,329 434,116,395

213,693,045 534,614,618 748,307,663

205,856,491 530,510,623 736,367,114

381,179,251 831,786,058 1,212,965,309

339,226,557 831,256,952 1,170,483,509

Total deferred outflows of resources

42,882,601

37,266,766

34,359,070

31,436,700

77,241,671

68,703,466

Long-term obligations Other liabilities Total liabilities

308,196,366 30,599,765 338,796,131

285,766,305 21,146,341 306,912,646

388,354,286 21,228,765 409,583,051

398,215,341 18,255,002 416,470,343

696,550,652 51,828,530 748,379,182

683,981,646 39,401,343 723,382,989

Total deferred inflows of resources

49,507,296

66,484,294

15,847,042

26,063,123

65,354,338

92,547,417

288,411,464 51,099,584 (220,274,228) 119,236,820

292,315,112 40,260,773 (234,589,664) 97,986,221

240,674,339 17,133,289 99,429,012 357,236,640

225,938,690 16,435,396 82,896,262 325,270,348

529,085,803 68,232,873 (120,845,216) 476,473,460

518,253,802 56,696,169 (151,693,402) 423,256,569

Current and other assets Capital assets Total assets

Net position Net investment in capital assets Restricted Unrestricted (deficit) Total net position

The City’s combined net position increased $53.2 million to $476.5 million from $423.3 million. Net position of the City’s governmental activities increased 21.7% to $119.2 million. Governmental assets increased $30.5 million, and liabilities increased $31.9 million. Long-term obligations for governmental activities increased $22.4 million. These changes were mainly due to shifts in amounts determined by an actuary for the LAGERS net pension liability and other post-employment benefits (OPEB) liability. Business-type activities assets increased $11.9 million and liabilities decreased $6.9 million. Long-term obligations for business-type activities decreased $9.9 million. The business-type activities also were affected in the same way by the shifts in the LAGERS net pension liability and OPEB liability. The City’s total unrestricted net position (deficit) was ($120.8) million. The governmental activities were ($220.3) million with an increase of $14.3 million from the previous year, and business-type activities were $99.4 million with an increase of $16.5 million from the previous year. The City’s total net investment in capital assets was $529.1 million, an increase of $10.8 million from the previous year.

CITY OF INDEPENDENCE, MISSOURI Management’s Discussion and Analysis June 30, 2023 Change In Net Position The following Table (MD-2) reflects the revenues and expenses from the City’s activities: Table MD-2 CITY OF INDEPENDENCE, MISSOURI Net Position Business-Type Activities

Governmental Activities

Revenues Program revenues Charges for services Operating grants & contributions Capital grants & contributions General revenues Property taxes Sales & use taxes Intergovernmental activity taxes Other taxes Investment income (loss) Other Total revenues

Expenses Administrative Services Public Safety Municipal Services Health & Animal Services Culture & Recreation Community Development Storm Water General Government Tax Increment Financing Interest Power and Light Water Sanitary Sewer Events Center Total expenses Excess (deficiency) of revenues over expenses before transfers

2023

2022

2023

14,275,233 19,179,250 2,202,634

17,390,436 21,098,815 229,348

228,610,234 — 50,736

9,244,766 70,893,438 12,692,303 9,258,357 2,741,825 1,070,057 141,557,863

9,088,287 58,149,550 12,370,738 8,222,106 (999,657) 1,781,900 127,331,523

5,317,752 66,986,969 19,999,077 3,306,814 10,201,048 7,659,845 3,918,103 990,601 23,961,338 463,293 — — — — 142,804,840

7,504,588 63,738,835 20,839,417 2,170,360 8,759,163 6,240,454 3,538,060 992,854 11,146,839 541,914 — — — — 125,472,484

Total 2022

2023

2022

215,481,565 — 16,858

242,885,467 19,179,250 2,253,370

232,872,001 21,098,815 246,206

— 8,952,353 — — 3,874,424 1,148,333 242,636,080

— 8,876,336 — — (3,126,574) 3,572,981 224,821,166

9,244,766 79,845,791 12,692,303 9,258,357 6,616,249 2,218,390 384,193,943

9,088,287 67,025,886 12,370,738 8,222,106 (4,126,231) 5,354,881 352,152,689

— — — — — — — — — — 125,623,313 22,954,212 27,820,819 12,512,968 188,911,312

— — — — — — — — — — 116,113,226 22,529,358 26,942,461 16,697,546 182,282,591

5,317,752 66,986,969 19,999,077 3,306,814 10,201,048 7,659,845 3,918,103 990,601 23,961,338 463,293 125,623,313 22,954,212 27,820,819 12,512,968 331,716,152

7,504,588 63,738,835 20,839,417 2,170,360 8,759,163 6,240,454 3,538,060 992,854 11,146,839 541,914 116,113,226 22,529,358 26,942,461 16,697,546 307,755,075

52,477,791

44,397,614

(1,246,977)

1,859,039

53,724,768

42,538,575

Transfers - In (Out)

21,758,476

20,207,564

(21,758,476)

(20,207,564)

Change in net position

20,511,499

22,066,603

31,966,292

22,331,011

52,477,791

44,397,614

98,725,321 119,236,820

75,919,618 97,986,221

325,270,348 357,236,640

302,939,337 325,270,348

423,995,669 476,473,460

378,858,955 423,256,569

Net position - beginning (as restated) Net position - ending

—

Total revenues increased 9.1% or $32.0 million, with business-type activities increasing 7.9% or $17.8 million, and governmental revenues increasing 11.2% or $14.2 million. These changes are due primarily to the following: •

Significant items include the increase in sales and use tax revenue of 19.1% or $12.8 million. Sales tax was minimally impacted by the COVID pandemic, but continues to be impacted by on-line sales versus brick and mortar retail. The City’s transient guest tax is included under the sales tax category, and had an increase of $1.7 million from prior year.

•

Total charges for services for the City increased $10.0 million or 4.3%, with the business-type activities increasing $13.1 million or 6.1% and the governmental fund activities decreasing by $3.1 million or 17.9%. The increase for the business-type activities is due to Power and Light’s operating revenue increase to fuel charge adjustments and weather conditions. The decrease for the governmental funds is due to lower building permit revenue where in fiscal year 2022 there were several larger construction projects and in fiscal year 2023 the building permit revenue came back down to more historical amounts. There were also lower interfund revenues for support services in the General Fund due to moving the Finance and Support Services departments out of the General Fund and into an Internal Service Fund.

CITY OF INDEPENDENCE, MISSOURI Management’s Discussion and Analysis June 30, 2023 •

Total expenses increased 7.8% or $24.0 million, with an increase to governmental expenses of 13.8% or $17.3 million and an increase to business-type expenses of 3.6% or $6.6 million. The increase in the governmental expenses was mainly due to the closure of TIF projects where balances were paid out to other taxing jurisdictions. Changes in the business-type expenses are attributed to normal operations; some of the changes are related to the effect of weather on Power and Light and Water sales. The transfers out of the business-type activities to the governmental activities represents the payment in-lieu of taxes that would be paid and received if they operated as private utilities.

Revenues For the fiscal year ending June 30, 2023, revenues totaled $384.2 million. Of this amount, charges for services (governmental and business-type) were $242.9 million or 63.2% of the total. Revenue from business-type activities represents $242.6 million or 63.2% of the total City revenues (Figure MD-3).

City of Independence Sources of Revenue for FY 2023 Figure MD-3 Water 9%

Power and Light 40%

Sanitary Sewer 10%

Events Center 4%

Property Taxes 2% Other <1%

Sales & Use Taxes 19%

Interest <1% Charges for Services 4%

Grants & Contributions 6%

Franchise Fees 2%

Intergovernmental Actvities Taxes 3%

Revenues from governmental activities were $141.6 million. Sales and use taxes, the largest governmental category, were $70.9 million or 50.1%. All taxes represent $102.1 million or 72.1% of governmental revenue. Charges for services at $14.3 million were 10.1% of the total. Operating and capital grants were $21.4 million or 15.1% of governmental revenues.

CITY OF INDEPENDENCE, MISSOURI Management’s Discussion and Analysis June 30, 2023 Expenses For the fiscal year ending June 30, 2023, expenses totaled $331.7 million. Of this amount, the Power and Light fund was $125.6 million or 37.9% of the total. Business-type expenses represent $188.9 million or 56.9% of the total City expenses (Figure MD-4).

City of Independence Function Expenses FY 2023 Figure MD-4

Water 7%

Power and Light 38%

Sanitary Sewer 9%

Events Center 4% Administrative Services 2%

Public Safety 20%

Interest <1%

Municipal Services 6%

Tax Increment Financing 7% General Government Storm Water <1% 1%

Community Development 2%

Animal Services 1%

Culture & Recreation 3%

Expenses from governmental activities were $142.8 million. Public safety expenses, the largest governmental category, were $67.0 million or 47.0% of the total. Tax Increment Financing was the next largest category at $24.0 million or 16.8% of the governmental total. Municipal Services is the third largest category at $20.0 million, which is 14.0% of the total.

CITY OF INDEPENDENCE, MISSOURI Management’s Discussion and Analysis June 30, 2023 Governmental Activities Table MD-3 CITY OF INDEPENDENCE, MISSOURI Net Cost of Governmental Activities Total Cost of Services 2023 Administrative Services Public Safety Municipal Services Health & Animal Services Culture & Recreation Community Development Storm Water General Government and Interest on Long-Term Debt Tax Increment Financing Total

Net Cost of Services 2022

2023

2022

5,317,752 66,986,969 19,999,077 3,306,814 10,201,048 7,659,845 3,918,103

7,504,588 63,738,835 20,839,417 2,170,360 8,759,163 6,240,454 3,538,060

(5,057,179) 61,089,935 11,634,999 2,012,734 9,114,270 6,835 3,915,245

(8,364,147) 58,199,557 14,962,593 1,203,668 7,897,526 (1,993,838) 3,155,718

1,453,894 23,961,338 142,804,840

1,534,768 11,146,839 125,472,484

1,453,894 22,976,990 107,147,723

1,534,768 10,158,040 86,753,885

As noted in Table MD-3 expenses from governmental activities for fiscal year 2023 were $142.8 million. However, the net cost of these services was $107.1 million. The difference represents direct revenues received from charges for services of $14.3 million, operating grants and contributions of $19.2 million, and capital grants and contributions of $2.2 million. Taxes and other revenues of $105.9 million were collected to cover these net costs. Of significance in the charges for services category there was $2.4 million netted to Administrative Services for interfund charges for support services, $4.5 million netted primarily to Administrative Services and Community Development for licenses and permits, and $1.9 million netted to Public Safety for fines and forfeitures.

Business-type Activities Revenues of the City’s business-type activities increased $17.8 million, and expenses increased $6.6 million. This change in revenues is primarily due to Power and Light’s operating revenue increase to fuel charge adjustments and weather conditions. The change in expenses is primarily the result of the changes in the LAGERS net pension and OPEB valuations for the three utilities.

CITY OF INDEPENDENCE, MISSOURI Management’s Discussion and Analysis June 30, 2023 FINANCIAL ANALYSIS OF THE CITY’S FUNDS As the City completed the year, its governmental funds reported a combined fund balance of $97.9 million. The fund balance of the General Fund increased $4.1 million, the TIF Debt Service fund balance decreased $7.0 million, and the non-major governmental fund balance increased $10.9 million. The increase for the non-major governmental funds was in the Sales Tax funds and resulted from higher sales tax revenues and lower expenditures. The unassigned portion of the General Fund’s fund balance increased $3.9 million. The General Fund’s fund balance was impacted by the financial highlights pointed out earlier, and also only essential personnel position vacancies were filled. The business-type funds reported a combined net position of $365.2 million. The net position of the Power and Light fund increased $13.5; million, the Water fund increased $11.9 million, the Sewer fund increased $5.6 million and the Events Center fund increased $3.7 million. The net position for all three utilities was also impacted by the LAGERS net pension and OPEB changes mentioned earlier. General Fund Budgetary Highlights Resources available for appropriation increased $87,570 from the original estimate. Actual revenues and other financing sources at the end of the year were more than projected by $4.6 million. The largest variances were in the areas of taxes, which were $1.8 million above estimated, intergovernmental revenues which were $1.2 million above estimated, and payments in lieu of taxes which were $911,332 above estimated. Over the course of the fiscal year, the Council revised the City budget several times. Appropriations were increased $433,337 in the General Fund. These budget amendments generally fall into the following categories: •

Transfer of previously approved salary and benefit appropriations to operating departments where expenditures occur when the actual distribution of the expenditure could not be anticipated at the time that the appropriation was originally approved.

•

Increase or decrease appropriations for unanticipated events, including overtime costs, which may arise throughout the fiscal year.

Actual expenditures and transfers out, including encumbrances, were $34,549 more than the amount appropriated.

CITY OF INDEPENDENCE, MISSOURI Management’s Discussion and Analysis June 30, 2023 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of fiscal year 2023, the City had invested $831.8 million, net of depreciation and amortization, in a broad range of capital assets, including police and fire equipment, buildings, park facilities, and electric, water and sewer systems. Assets decreased $1.6 million or 0.2% during the period, due mostly to depreciation exceeding replacement. Table MD-4 CITY OF INDEPENDENCE, MISSOURI Capital Assets (net of depreciation and amortization) Governmental Activities 2023 2022 Land & land imp Buildings & Improvements Office furniture & equipment Computer equipment Mobile equipment Other equipment Infrastructure

Construction in progress Leases Subscriptions Total

Business-Type Activities 2023 2022 13,119,837

2023

2022

Total Percentage Change 2022-2023

48,953,767

49,480,944

-1.07%

Total

35,833,930

36,361,107

13,119,837

47,106,122

50,953,269

—

47,106,122

50,953,269

-7.55%

4,909 4,233,951 11,791,174 3,549,554 167,739,166

9,136 5,117,513 11,342,037 3,672,328 178,131,050

— — — 16,943,609 448,548,387

— — — 15,782,198 447,359,667

4,909 4,233,951 11,791,174 20,493,163 616,287,553

9,136 5,117,513 11,342,037 19,454,526 625,490,717

-46.27% -17.27% 3.96% 5.34% -1.47%

24,652,209 84,360 2,176,065

15,085,790 74,099 2,173,246

55,568,119 939 433,727

54,247,340 1,581 —

80,220,328 85,299 2,609,792

69,333,130 75,680 2,173,246

15.70% 12.71% 20.09%

297,171,440

302,919,575

534,614,618

530,510,623

831,786,058

833,430,198

-0.20%

The budget for fiscal year 2024 projects the City will spend an additional $59.9 million for capital projects. The largest category at $21.8 million is for projects in the Street Improvements Sales Tax Fund. Additional information regarding capital assets can be found in the ‘Notes to Financial Statements’, Note (6), of this report.

CITY OF INDEPENDENCE, MISSOURI Management’s Discussion and Analysis June 30, 2023 Debt Administration Table MD-5 CITY OF INDEPENDENCE, MISSOURI Outstanding Debt

2022

2023

2022

Total Percentage Change 2022-2023

309,798,453 —

322,431,204 —

326,428,453 108,017,435

340,371,204 113,137,777

-4.10% -4.53%

1,456,845

—

1,193,813

1,456,845

-18.05%

11,964

19,910

—

11,964

19,910

-39.91%

125,853,212

132,554,532

435,651,665

454,985,736

-4.25%

Governmental Activities

Loans and bonds payable TIF loans payable Capital lease obligations Neighborhood Improvement District Total

Business-type Activities

2023

2022

16,630,000 108,017,435

17,940,000 113,137,777

1,193,813

2023

309,798,453

Total

322,431,204

At the end of fiscal year 2023, the City had a total of $435.7 million of outstanding obligations. This was a decrease of $19.3 from the previous fiscal year. None of the debt is a general obligation of the City, and is limited to either an annual appropriation or specific revenue for repayment. Of the total debt, $309.8 million or 71.1% are obligations of the business-type activities. The City’s credit ratings from Standard & Poor’s (S&P) are A/Stable for Power and Light, AA-/Stable for Water, A+/Stable for Sewer, BBB+/Stable for the Falls at Crackerneck Creek – Bass Pro TIF, and A-/Stable for all other economic development projects. Additional information regarding debt can be found in the ‘Notes to Financial Statements’ section, Note (7), of this report.

Economic Factors In the last five years the City, as a community, lost 2,285 jobs, with current total employment at 56,767 jobs. Unemployment by mid-2023 was 3.4%; this is equal to the Jackson County level at 3.4% and higher than the State level at 3.3%. Average household income for 2023 is estimated to be $71,436, compared to $88,586 for the State as a whole. Per capita income for 2023 is estimated to be $31,714, compared to $36,640 for the State as a whole.

Contacting the City’s Financial Management This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. Questions concerning this report or requests for additional information should be directed to Cindy Gray, Director of Finance, City of Independence, P.O. Box 1019, Independence, MO 64051.

Exhibit 1 CITY OF INDEPENDENCE, MISSOURI Statement of Net Position June 30, 2023

Governmental Activities ASSETS Current Assets: Pooled cash and investments Receivables: Taxes Accounts, net Unbilled revenue Special assessment principal Accrued interest Leases Other Internal balances Due from other governments Inventory Prepaid items Restricted cash and investments Total current assets Noncurrent Assets: Capital assets: Nondepreciable Depreciable, net Leases, net Subscriptions, net Restricted cash and investments Total noncurrent assets Total assets

DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding Pension related amounts Other post-employment benefits Deferred environmental and regulatory amounts Goodwill Total deferred outflows of resources Total assets and deferred outflows of resources LIABILITIES Current Liabilities: Accounts and contracts payable Accrued items Other current liabilities Unearned revenue Current portion of long-term obligations Self-insurance claims payable Liabilities payable from restricted assets Total current liabilities Noncurrent Liabilities: Noncurrent portion of long-term obligations Lease liability Subscription liability Self-insurance claims payable OPEB liability Net pension liability Advances for construction Total noncurrent liabilities Total liabilities

DEFERRED INFLOWS OF RESOURCES Real estate tax revenue Leases Pension related amounts Other post-employment benefits Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for: Public Safety Municipal Services - Public Works Culture and Recreation Storm Water Health and Animal Services General Government Debt Service Worker's Compensation escrow Dogwood SPP escrow Southwest Power Pool collateral Community Improvement District Unrestricted (deficit) Total net position Total liabilities, deferred inflows of resources and net position See accompanying notes to financial statements.

Primary Government Business-Type Activities

Total

97,387,052

145,800,614

243,187,666

31,141,726 949,303 — 1,181,643 136,547 3,746,255 — 6,549,907 4,011,311 103,418 — — 145,207,162

1,556,848 20,661,963 8,245,478 61,699 269,113 578,065 2,507,640 (6,549,907) 460,611 8,051,327 573,780 6,013,222 188,230,453

32,698,574 21,611,266 8,245,478 1,243,342 405,660 4,324,320 2,507,640 — 4,471,922 8,154,745 573,780 6,013,222 333,437,615

56,836,595 238,074,420 84,360 2,176,065 22,279,044 319,450,484 464,657,646

68,687,956 465,491,996 939 433,727 25,462,592 560,077,210 748,307,663

125,524,551 703,566,416 85,299 2,609,792 47,741,636 879,527,694 1,212,965,309

5,383,092 23,255,378 14,244,131 — — 42,882,601 507,540,247

9,316,709 7,068,630 7,223,183 9,910,792 839,756 34,359,070 782,666,733

14,699,801 30,324,008 21,467,314 9,910,792 839,756 77,241,671 1,290,206,980

17,219,588 5,286,465 1,399,594 6,543,820 22,734,603 4,097,884 150,298 57,432,252

9,113,848 3,824,252 1,495,763 1,177,689 17,961,444 — 5,210,701 38,783,697

26,333,436 9,110,717 2,895,357 7,721,509 40,696,047 4,097,884 5,360,999 96,215,949

126,974,233 48,320 417,035 6,493,811 114,259,942 33,170,538 — 281,363,879 338,796,131

302,041,939 179 245,978 — 52,716,096 15,388,650 406,512 370,799,354 409,583,051

429,016,172 48,499 663,013 6,493,811 166,976,038 48,559,188 406,512 652,163,233 748,379,182

18,572,198 3,720,353 3,897,217 23,317,528 49,507,296

— 478,471 2,392,890 12,975,681 15,847,042

18,572,198 4,198,824 6,290,107 36,293,209 65,354,338

288,411,464

240,674,339

529,085,803

18,283,645 13,385,929 6,253,614 12,181,382 677,233 8,737 107,738 201,306 — — — (220,274,228) 119,236,820 507,540,247

— — — — — — 5,023,256 — 61,500 928,162 11,120,371 99,429,012 357,236,640 782,666,733

18,283,645 13,385,929 6,253,614 12,181,382 677,233 8,737 5,130,994 201,306 61,500 928,162 11,120,371 (120,845,216) 476,473,460 1,290,206,980

Exhibit 2 CITY OF INDEPENDENCE, MISSOURI Statement of Activities Year Ended June 30, 2023

Functions/Programs Primary Government: Governmental Activities: Administrative Services Public Safety Municipal Services Health & Animal Services Culture and Recreation Community Development Storm Water General Government Tax Increment Financing Interest on long-term debt Total governmental activities

Expenses

Charges for Services

Operating Grants and Contributions

Capital Grants and Contributions

Net (Expense) Revenue

5,317,752 66,986,969 19,999,077 3,306,814 10,201,048 7,659,845 3,918,103 990,601 23,961,338 463,293 142,804,840

3,768,977 2,834,631 417,831 595,848 875,378 4,797,497 723 — 984,348 — 14,275,233

6,605,954 2,784,713 6,093,364 698,232 140,940 2,855,513 534 — — — 19,179,250

— 277,690 1,852,883 — 70,460 — 1,601 — — — 2,202,634

5,057,179 (61,089,935) (11,634,999) (2,012,734) (9,114,270) (6,835) (3,915,245) (990,601) (22,976,990) (463,293) (107,147,723)

125,623,313 22,954,212 27,820,819 12,512,968 188,911,312

152,626,237 34,301,948 36,686,076 4,995,973 228,610,234

— — — — —

50,736 — — — 50,736

27,053,660 11,347,736 8,865,257 (7,516,995) 39,749,658

331,716,152

242,885,467

19,179,250

2,253,370

(67,398,065)

Governmental Activites

Business-Type Activities

(107,147,723)

39,749,658

(67,398,065)

General Revenues: Taxes Property taxes Sales and use taxes Intergovernmental activity taxes Franchise taxes Financial institutions tax Investment income Miscellaneous Transfers in (out) Total general revenues and transfers

9,244,766 70,893,438 12,692,303 9,228,632 29,725 2,741,825 1,070,057 21,758,476 127,659,222

— 8,952,353 — — — 3,874,424 1,148,333 (21,758,476) (7,783,366)

9,244,766 79,845,791 12,692,303 9,228,632 29,725 6,616,249 2,218,390 — 119,875,856

Change in net position

20,511,499

31,966,292

52,477,791

98,725,321 119,236,820

325,270,348 357,236,640

423,995,669 476,473,460

Business-Type Activities: Power and Light Water Sewer Events Center Total business-type activities Total primary government

Changes in Net Position: Net (expense) revenue

Net position - beginning (as restated) Net position - ending

See accompanying notes to financial statements.

Total

Exhibit 3 CITY OF INDEPENDENCE, MISSOURI Balance Sheet Governmental Funds June 30, 2023

General ASSETS Pooled cash and investments Receivables: Taxes Accounts, net Special assessment principal Accrued interest Leases Due from other funds Due from other governments Restricted cash and investments Total assets LIABILITIES Accounts and contracts payable Due to other funds Accrued items Other current liabilities Unearned revenue Liabilities payable from restricted assets: Deposits and court bonds Total liabilities

Total Governmental Funds

7,693,147

27,607,655

50,793,193

86,093,995

11,190,847 731,975 808,133 17,222 808,930 1,458,744 1,095,280 150,298 23,954,576

10,150,256 74,324 — 24,441 2,937,325 — 364,150 10,360,270 51,518,421

9,800,623 121,856 373,510 83,559 — 16,155 2,551,881 11,567,170 75,307,947

31,141,726 928,155 1,181,643 125,222 3,746,255 1,474,899 4,011,311 22,077,738 150,780,944

206,836 — 2,793,555 1,345,681 168,341

14,873,262 1,718 — 10,615 —

1,744,371 950,312 712,345 43,298 6,360,285

16,824,469 952,030 3,505,900 1,399,594 6,528,626

150,298 4,664,711

— 14,885,595

— 9,810,611

150,298 29,360,917

811,029 6,648,618 783,028 8,242,675

— 8,917,547 2,937,325 11,854,872

373,510 3,006,033 — 3,379,543

1,184,539 18,572,198 3,720,353 23,477,090

12,907,386

26,740,467

13,190,154

52,838,007

225,394 50,985 585,157 10,185,654 11,047,190

24,779,350 — — (1,396) 24,777,954

61,999,861 136,154 — (18,222) 62,117,793

87,004,605 187,139 585,157 10,166,036 97,942,937

23,954,576

51,518,421

75,307,947

150,780,944

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - special assessments Unavailable revenue - real estate taxes Unavailable revenue - leases Total deferred inflows of resources Total liabilities and deferred inflows of resources FUND BALANCES Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resouces and fund balance

TIF Debt Service

Nonmajor Governmental Funds

See accompanying notes to financial statements.

Exhibit 3.1 CITY OF INDEPENDENCE, MISSOURI Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2023 Fund balances – total governmental funds

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds: Governmental capital assets Less accumulated depreciation Leases and subscriptions Less accumulated amortization

97,942,937

684,900,755 (393,723,398) 171,588 (65,253) 291,283,692

Interest on long-term debt is not accrued in governmental funds but, rather, is recognized as an expenditure when due and payable

(1,436,494)

Receivables not collected within 60 days of year-end are not available soon enough to pay for the current period's expenditures and, therefore, are deferred inflows of resources in the funds

1,184,539

Internal Service Funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the Internal Service Funds are included in the governmental activities in the Statement of Net Position, net of the amount allocated to business-type activities

5,254,549

Long-term liabilities, including bonds payable are not due and payable in the current period and therefore are not reported in the funds Loans payable/NID payable Financed purchase obligations Compensated absences Discounts (premiums) Deferred charge on refunding Other post-employment benefits Net pension liability Lease and subscription liability

(120,122,000) (1,193,813) (15,929,426) (4,537,399) 5,383,092 (117,754,997) (31,100,273) (92,371) (285,347,187)

Pension related deferred outflows and inflows of resources are not due and payable in the current year and, therefore, are not reported in the governmental funds, as follows: Deferred outflows of resources - pension related amounts Deferred outflows of resources - other post-employment benefits Deferred inflows of resources - pension related amounts Deferred inflows of resources - other post-employment benefits

Net position of governmental activities (Exhibit 1)

See accompanying notes to financial statements. 27

22,304,422 14,154,450 (3,575,297) (22,528,791) 10,354,784 $

119,236,820

Exhibit 4 CITY OF INDEPENDENCE, MISSOURI Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2023

REVENUES Taxes Licenses and permits Intergovernmental Charges for services Interfund charges for support services Fines, forfeitures, and court costs Investment income Other revenue Total revenues

General

TIF Debt Service

Nonmajor Governmental Funds

Total Governmental Funds

37,623,557 4,515,592 7,044,054 2,519,197 2,354,600 2,125,274 185,978 676,341 57,044,593

18,933,567 — — — — — 1,019,820 1,106,012 21,059,399

45,380,351 557,061 13,639,452 1,266,310 — — 1,196,646 817,296 62,857,116

101,937,475 5,072,653 20,683,506 3,785,507 2,354,600 2,125,274 2,402,444 2,599,649 140,961,108

4,549,155 59,252,584 5,371,361 212,419 4,901,339 — — — — —

— — — — — — — — 18,889,484 —

508,677 13,341,388 874,759 9,140,207 2,682,243 2,604,668 2,975,936 56,400 — 14,246,744

5,057,832 72,593,972 6,246,120 9,352,626 7,583,582 2,604,668 2,975,936 56,400 18,889,484 14,246,744

157,270 23,469 74,467,597

4,775,000 4,355,901 28,020,385

1,488,344 452,311 48,371,677

6,420,614 4,831,681 150,859,659

(17,423,004)

(6,960,986)

14,485,439

(9,898,551)

OTHER FINANCING SOURCES (USES) Lease proceeds Subscription proceeds Transfers in - utility payments in lieu of taxes Transfers in Transfers out Total other financing sources (uses)

— — 21,760,119 — (217,275) 21,542,844

— — — 14,110,908 (14,110,908) —

2,827 86,130 — 2,269,911 (5,954,279) (3,595,411)

2,827 86,130 21,760,119 16,380,819 (20,282,462) 17,947,433

Net change in fund balances Fund balances - beginning Fund balances - ending

4,119,840 6,927,350 11,047,190

(6,960,986) 31,738,940 24,777,954

10,890,028 51,227,765 62,117,793

8,048,882 89,894,055 97,942,937

See accompanying notes to financial statements.

Exhibit 4.1 CITY OF INDEPENDENCE, MISSOURI Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Year Ended June 30, 2023 Net change in fund balances – total governmental funds

8,048,882

Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation exceeded capital outlays in the current period: Capital outlay Depreciation expense Leases and subscriptions Amortization expense

17,320,491 (21,972,603) (4,270) (49,622) (4,706,004)

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds

160,600

Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. This is the amount by which proceeds exceeded repayments. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. This amount is the net effect of these differences in the treatment of long-term debt and related items: Principal payments Debt premiums, discounts & deferred refunding amortizations

6,356,029 (766,755) 5,589,274

Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds: Compensated absences Accrued interest Other post-employment benefits Pension related amount - LAGERS pension benefit Lease and subscription payments

1,023,079 63,241 (733,591) 7,293,108 66,498 7,712,335

Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and garage charges, to individual funds. The net expense of the internal service funds is reported with the governmental activities: Change in net position of governmental activities (Exhibit 2)

See accompanying notes to financial statements.

3,706,412 $

20,511,499

Exhibit 5 CITY OF INDEPENDENCE, MISSOURI Statement of Net Position Proprietary Funds June 30, 2023

Enterprise Funds Power and Light ASSETS Current assets: Pooled cash and investments Receivables: Taxes Accounts, net Unbilled revenue Special assessment principal Accrued interest Leases Other receivable Due from other funds Due from other governments Inventory Prepaid items Restricted cash and investments Total current assets Noncurrent assets: Capital Assets: Nondepreciable Depreciable, net Leased assets, net Subscription assets, net Restricted cash and investments Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding Pension related amounts Other post-employment benefits Deferred environmental and regulatory amounts Goodwill Total deferred outflows of resources Total assets and deferred outflows of resources LIABILITIES Current liabilities: Accounts and contracts payable Due to other funds Accrued items Other current liabilities Unearned revenue Current portion of long-term obligations Compensated absences - current Lease liability Subscription liability Total OPEB liability Self-insurance claims payable Liabilities payable from restricted assets Total current liabilities Noncurrent liabilities: Revenue bonds payable Compensated absences-long term Lease liability Subscription liability Total OPEB liability Net pension liability Self-insurance claims payable Advances for construction Total noncurrent liabilities Total liabilities

DEFERRED INFLOWS OF RESOURCES Pension related amounts-deferred inflow OPEB - deferred inflow Leases Total deferred inflows of resources Total liabilities and deferred inflows of resources NET POSITION Net investment in capital assets Restricted for: Community Improvement District Debt service/capital outlay Dogwood SPP escrow Southwest Power Pool collateral Worker's Compensation escrow Unrestricted Total net position (deficit) Total liabilities, deferred inflows of recources, and net position

Water

Sanitary Sewer

Events Center

Total

Governmental Activities Internal Service Funds

51,797,306

51,219,650

33,820,216

8,963,442

145,800,614

11,293,057

— 12,781,448 4,435,404 61,699 103,873 31,734 2,154,521 491,731 185,328 6,261,150 494,125 4,487,455 83,285,774

— 3,237,346 1,601,373 — 99,565 — 34,876 491,731 — 1,640,700 — 861,206 59,186,447

— 3,759,161 2,208,701 — 65,675 — 318,243 491,731 275,283 143,638 — 664,561 41,747,209

1,556,848 884,008 — — — 546,331 — — — 5,839 79,655 — 12,036,123

1,556,848 20,661,963 8,245,478 61,699 269,113 578,065 2,507,640 1,475,193 460,611 8,051,327 573,780 6,013,222 196,255,553

— 21,148 — — 11,325 — — — — 103,418 — — 11,428,948

39,365,782 180,906,381 — 433,727 4,184,606 224,890,496 308,176,270

12,612,598 102,630,931 — — 3,144,015 118,387,544 177,573,991

10,913,261 130,761,633 939 — 6,904,022 148,579,855 190,327,064

5,796,315 51,193,051 — — 11,229,949 68,219,315 80,255,438

68,687,956 465,491,996 939 433,727 25,462,592 560,077,210 756,332,763

93,979 3,639,678 31,782 2,122,308 201,306 6,089,053 17,518,001

751,419 4,811,381 4,484,754 9,910,792 — 19,958,346 328,134,616

571,542 1,357,190 1,003,170 — — 2,931,902 180,505,893

2,502,770 900,059 1,735,259 — — 5,138,088 195,465,152

5,490,978 — — — 839,756 6,330,734 86,586,172

9,316,709 7,068,630 7,223,183 9,910,792 839,756 34,359,070 790,691,833

— 950,956 89,681 — — 1,040,637 18,558,638

6,727,198 — 1,569,702 392,207 — 5,451,311 — — 117,635 1,782,659 — 3,718,601 19,759,313

896,705 — 698,352 395,254 — 2,259,362 — — — 509,944 — 827,539 5,587,156

417,782 — 695,161 706,710 — 3,964,619 — 683 — 475,231 — 664,561 6,924,747

1,072,163 31,138 861,037 1,592 1,177,689 3,400,000 — — — — — — 6,543,619

9,113,848 31,138 3,824,252 1,495,763 1,177,689 15,075,292 — 683 117,635 2,767,834 — 5,210,701 38,814,835

395,119 1,966,924 344,073 — 15,194 — 389,003 14,282 932,494 124,919 4,097,884 — 8,279,892

118,280,722 3,349,700 — 245,978 33,952,468 10,474,542 — 232,964 166,536,374 186,295,687

15,229,562 801,608 — — 9,712,383 2,954,649 — 173,548 28,871,750 34,458,906

82,557,373 542,178 179 — 9,051,245 1,959,459 — — 94,110,434 101,035,181

81,280,796 — — — — — — — 81,280,796 87,824,415

297,348,453 4,693,486 179 245,978 52,716,096 15,388,650 — 406,512 370,799,354 409,614,189

— 534,491 15,451 414,292 2,379,192 2,070,265 6,493,811 — 11,907,502 20,187,394

1,628,761 7,086,736 38,109 8,753,606 195,049,293

459,439 2,978,633 — 3,438,072 37,896,978

304,690 2,910,312 — 3,215,002 104,250,183

— — 440,362 440,362 88,264,777

2,392,890 12,975,681 478,471 15,847,042 425,461,231

321,920 788,737 — 1,110,657 21,298,051

96,882,882

98,583,124

57,834,169

(12,625,836)

240,674,339

4,511,228

— 4,110,452 61,500 928,162 — 31,102,327 133,085,323

— 500,000 — — — 43,525,791 142,608,915

— — — — — 33,380,800 91,214,969

11,120,371 412,804 — — — (585,944) (1,678,605)

11,120,371 5,023,256 61,500 928,162 — 107,422,974 365,230,602

— — — — 201,306 (7,451,947) (2,739,413)

328,134,616

180,505,893

195,465,152

86,586,172

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Net position of business-type activities

18,558,638

See accompanying notes to financial statements.

(7,993,962) 357,236,640

Exhibit 6 CITY OF INDEPENDENCE, MISSOURI Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds June 30, 2023

Enterprise Funds Power and Light OPERATING REVENUES Charges for services Miscellaneous operating Total operating revenues

Sanitary Sewer

Events Center

Total

143,813,532 8,812,705 152,626,237

33,845,059 456,889 34,301,948

36,296,214 389,862 36,686,076

4,995,973 — 4,995,973

218,950,778 9,659,456 228,610,234

40,055,727 1,054,221 41,109,948

OPERATING EXPENSES Personnel services Other services Supplies Other expenses Depreciation and amortization Total operating expenses Operating income (loss)

11,007,913 29,191,877 61,532,027 8,569,763 11,752,337 122,053,917 30,572,320

5,316,519 8,074,985 3,032,614 3,112,394 3,253,813 22,790,325 11,511,623

6,065,497 14,707,315 687,686 2,306 4,407,896 25,870,700 10,815,376

— 551,192 713,917 6,202,819 2,359,590 9,827,518 (4,831,545)

22,389,929 52,525,369 65,966,244 17,887,282 21,773,636 180,542,460 48,067,774

8,843,604 33,858,918 1,863,387 — 1,725,923 46,291,832 (5,181,884)

NONOPERATING REVENUES (EXPENSES) Investment income Lease revenue Miscellaneous non-operating Interest and amortization expense Sales tax Total nonoperating revenues (expenses) Income (loss) before contributions and

1,153,923 2,006 1,598,796 (5,016,583) — (2,261,858) 28,310,462

1,099,359 — 3,412,665 (755,456) — 3,756,568 15,268,191

851,550 — 113,038 (2,548,537) — (1,583,949) 9,231,427

769,592 — 1,473,315 (2,685,450) 8,952,353 8,509,810 3,678,265

3,874,424 2,006 6,597,814 (11,006,026) 8,952,353 8,420,571 56,488,345

339,381 — 1,854,663 (20,061) — 2,173,983 (3,007,901)

Capital contributions Transfers out - utility payments in lieu of taxes Transfers in Transfers out Change in net position

50,736 (14,824,658) — — 13,536,540

— (3,341,507) — — 11,926,684

— (3,593,954) 10,000 (8,357) 5,639,116

— — — — 3,678,265

50,736 (21,760,119) 10,000 (8,357) 34,780,605

— — 3,900,000 — 892,099

119,548,783 133,085,323

130,682,231 142,608,915

85,575,853 91,214,969

(5,356,870) (1,678,605)

Total net position (deficit) - beginning (as restated) Total net position (deficit) - ending

Water

Governmental Activities Internal Service Funds

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Change in net position of business-type activities

(3,631,512) (2,739,413)

See accompanying notes to financial statements.

(2,814,313) 31,966,292

Exhibit 7 CITY OF INDEPENDENCE, MISSOURI Statement of Cash Flows Proprietary Funds Year ended June 30, 2023

Events Center

Total

Governmental Activities Internal Service Funds

Power and Light

Water

Enterprise Funds Sanitary Sewer

153,301,802 (98,093,106) (19,142,275)

37,207,610 (14,673,296) (8,499,969)

36,392,174 (15,458,877) (6,038,021)

7,412,863 (7,546,908) —

234,314,449 (135,772,187) (33,680,265)

43,003,993 (32,104,448) (5,963,567)

36,066,421

14,034,345

14,895,276

(134,045)

64,861,997

4,935,978

— (14,824,658) — 248,956

— — (3,341,507) — 248,956

10,000 (8,357) (3,593,954) — 248,956

— — — 8,952,353 (914)

10,000 (8,357) (21,760,119) 8,952,353 745,954

3,900,000 — — — (995,824)

(14,575,702)

(3,092,551)

(3,343,355)

8,951,439

(12,060,169)

2,904,176

(11,742,474) (5,115,981) — (3,210,000)

(6,825,386) (783,841) — (1,785,000)

(3,472,074) (2,659,873) (138,321) (3,535,000)

(3,701,873) (2,792,891) — (3,295,000)

(25,741,807) (11,352,586) (138,321) (11,825,000)

(2,770,906) (20,061) — —

(20,068,455)

(9,394,227)

(9,805,268)

(9,789,764)

(49,057,714)

(2,790,967)

1,606,430 (454,500)

1,544,818 (441,604)

1,008,779 (156,240)

769,592 —

4,929,619 (1,052,344)

387,059 (52,143)

Net cash provided by (used in) investing activities

1,151,930

1,103,214

852,539

769,592

3,877,275

334,916

Net increase (decrease) in cash and cash equivalents

2,574,194

2,650,781

2,599,192

(202,778)

7,621,389

5,384,103

Cash Flows from Operations: Receipts from customers and others Payments to suppliers Payments to employees

Net cash provided by (used in) operating activities Cash Flows from Noncapital Financing Activities: Transfers in Transfers out Transfers out – payments in lieu of taxes Sales tax Advances from (to) other funds Net cash provided by (used in) noncapital financing activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Interest paid on revenue bonds and equipment contracts Proceeds from bond issue Redemption of revenue bonds Net cash provided by (used in) capital and related financing activities Cash Flows from Investing Activities: Interest on investments Adjustment to market value

Cash and cash equivalents - beginning Cash and cash equivalents - ending

57,895,173 60,469,367

52,574,090 55,224,871

38,789,607 41,388,799

20,396,169 20,193,391

169,655,039 177,276,428

6,110,260 11,494,363

Investments with original maturities greater than 90 days Pooled cash and investments

— 60,469,367

— 55,224,871

— 41,388,799

— 20,193,391

— 177,276,428

— 11,494,363

Noncash capital and related financing activities: Contributed capital

50,736

—

50,736

—

$ $

51,797,306 8,672,061 60,469,367

51,219,650 4,005,221 55,224,871

33,820,216 7,568,583 41,388,799

8,963,442 11,229,949 20,193,391

145,800,614 31,475,814 177,276,428

11,293,057 201,306 11,494,363

30,572,320

11,511,623

10,815,376

(4,831,545)

48,067,774

(5,181,884)

11,752,337 2,006 1,598,796

3,253,813 — 3,412,665

4,407,896 — 113,038

2,359,590 — 1,473,315

21,773,636 2,006 6,597,814

1,725,923 — 1,854,663

(2,175,447) (906,447) (182,054) 1,264,162 9,922 (2,535,159) (31,734) (30,249) 1,828,117 208,409 — 363,613 1,547,636 — (7,133,314) 38,109 — (124,602)

(526,526) (595,471) 31,332 (90,689) — (599,857) — 12,647 (5,881) 124,038 — — (614,509) — (1,814,748) — — (64,092)

(399,516) (76,825) — (133,148) — (196,260) — 125,724 (177,752) 43,005 (683) — 1,676,510 — (1,289,912) — — (12,177)

(23,269) (2,876) (47,819) — — — — — (414,657) 9,355 — — — — 377,017 — 966,844 —

(3,124,758) (1,581,619) (198,541) 1,040,325 9,922 (3,331,276) (31,734) 108,122 1,229,827 384,807 (683) 363,613 2,609,637 — (9,860,957) 38,109 966,844 (200,871)

39,382 34,225 409,949 — — (808,116) — — 113,543 528,497 — 2,115,619 2,737,432 689,580 (64,263) — 15,194 726,234

5,494,101 36,066,421

2,522,722 14,034,345

4,079,900 14,895,276

4,697,500 (134,045)

16,794,223 64,861,997

10,117,862 4,935,978

Components of cash and short-term investments at end of fiscal year: Unrestricted assets Restricted assets Total pooled cash and investments Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization Lease revenue Miscellaneous revenue Change in assets and liabilities: Accounts receivable Inventory Prepaid items and other assets Unbilled revenue Special assessments receivable Other deferred charges Lease receivable Other receivable Accounts and contracts payable Accrued and other liabilities Lease liability Subscription liability Other post-employment benefits & net pension liability Self-insurance claims payable Deferred charges Deferred lease revenue Unearned revenue Compensated absences Total adjustments Net cash provided by (used in) operating activities

See accompanying notes to financial statements.

Exhibit 8 CITY OF INDEPENDENCE, MISSOURI Statement of Fiduciary Net Position June 30, 2023

Custodial Funds ASSETS Pooled cash and investments Accrued interest Total assets NET POSITION Restricted for: Individuals and organizations Total net position

See accompanying notes to financial statements.

248,861 569 249,430

249,430 249,430

Exhibit 9 CITY OF INDEPENDENCE, MISSOURI Statement of Changes in Fiduciary Net Position Fiduciary Funds Year Ended June 30, 2023 Custodial Funds ADDITIONS Contributions Investment income Total additions

DEDUCTIONS Benefits paid to participants Award distribution Total deductions

339,399 9,728 349,127

343,750 1,000 344,750

Change in net position

4,377

Net Position - beginning Net Position - ending

See accompanying notes to financial statements.

245,053 249,430

CITY OF INDEPENDENCE, MISSOURI Index to Notes to Financial Statements June 30, 2023 (1)

Summary of Significant Accounting Policies .............................................................................................37

(a)

The Financial Reporting Entity ...............................................................................................................37

(b)

Basis of Presentation ...............................................................................................................................38

(c)

Basis of Accounting ................................................................................................................................39

(d)

Accounts Receivable ...............................................................................................................................40

(e)

Investments .............................................................................................................................................40

(f)

Inventory .................................................................................................................................................40

(g)

Prepaid Items...........................................................................................................................................40

(h)

Interfund Activity ....................................................................................................................................41

(i)

Capital Assets ..........................................................................................................................................41

(j)

Bond Premiums/Discounts, and Issuance Costs......................................................................................43

(k)

Deferred Inflows/Outflows .....................................................................................................................43

(l)

Compensated Absences ...........................................................................................................................44

(m)

Pensions...................................................................................................................................................44

(n)

Fund Balances .........................................................................................................................................44

(o)

Net Position .............................................................................................................................................45

(p)

Statement of Cash Flows .........................................................................................................................46

(q)

Use of Estimates ......................................................................................................................................46

(r)

Implementation of GASB Pronouncements ............................................................................................46

(s)

New Accounting Pronouncements ..........................................................................................................46

(2)

Deposits and Investments ............................................................................................................................47

(3)

Tax Revenue................................................................................................................................................51

(a)

Tax Abatements ......................................................................................................................................52

(4)

Intergovernmental Revenue and Receivables .............................................................................................55

(5)

Interfund Activity ........................................................................................................................................57

(a)

Interfund Balances ..................................................................................................................................57

(b)

Interfund Charges for Support Services ..................................................................................................57

(c)

Payments in Lieu of Taxes ......................................................................................................................58

(d)

Interfund Transfers ..................................................................................................................................58

(6)

Capital Assets ..............................................................................................................................................59

(7)

Long-Term Obligations ...............................................................................................................................65

(a)

Governmental Activities .........................................................................................................................68 35

CITY OF INDEPENDENCE, MISSOURI Index to Notes to Financial Statements June 30, 2023 (1)

Loans Payable ........................................................................................................................................68

(2)

Neighborhood Improvement District .....................................................................................................68

(3)

Financed Purchase Obligations and Leases ...........................................................................................69

(4)

Blended Component Unit ......................................................................................................................76

(a)

Tax Increment Financing Loans and Developer Obligations ............................................................76

(1) (b) (b)

Tax Increment Financing Prior Year Defeasance of Debt ..........................................................79 Bass Pro Lease...................................................................................................................................79

Business-type Activities ..........................................................................................................................81

(1)

Revenue Bonds ......................................................................................................................................81

(2)

Prior Year Defeasance of Debt ..............................................................................................................83

(3)

Pledged Revenues ..................................................................................................................................83

(4)

Letter of Credit .....................................................................................................................................83

(5)

Events Center Bonds..............................................................................................................................84

(8)

Advances for Construction ............................................................................................................................84

(9)

Employee Retirement System .....................................................................................................................84

(10)

Post-Employment Health Benefits ..............................................................................................................88

(11)

Risk Management........................................................................................................................................92

(12)

Commitments and Contingencies................................................................................................................93

(13)

Deficits ........................................................................................................................................................96

(14)

Subsequent Events ......................................................................................................................................96

(15)

Fund Balance...............................................................................................................................................97

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (1)

Summary of Significant Accounting Policies The City of Independence, Missouri (the City) was incorporated in 1849 and covers an area of approximately 79 square miles in Jackson County, Missouri. The City is a charter city and operates under the City Council/City Manager form of government. The City Manager is the chief administrative officer of the City. The City provides services to residents in many areas, including law enforcement, fire protection, electrical, water and sewer services, community enrichment and development, recreation and various social services. Elementary, secondary and junior college education services are provided by various school districts, all of which are separate governmental entities. The accounting and reporting policies of the City conform to accounting principles generally accepted in the United States of America (GAAP) applicable to local governments. The following is a summary of the more significant accounting and reporting policies and practices of the City. (a) The Financial Reporting Entity In evaluating how to define the government for financial reporting purposes, management has considered all potential component units. Component units are separate legal entities which are included in the primary government’s financial report. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in GAAP. The basic, but not only, criterion for including a potential component unit within the reporting entity is the City’s financial accountability for the potential component unit. An entity is considered a component unit if City officials appoint a voting majority of the component unit’s governing body and the City is able to impose its will upon the component unit. Additionally, if the entity provides specific financial benefits to or imposes specific financial burdens on the City, it may be considered a component unit. This report includes the financial statements of the City (the primary government) which includes the Independence Events Center Management Corporation (Corporation) and the Cable Dahmer Arena, formerly known as the Independence Events Center managed by the Oak View Group (OVG) as blended component units. The Corporation is governed by a 5-member board, of which all are City employees and appointed by the City. The Corporation performs management functions for the facility. OVG manages the daily operations of the Arena providing an exclusive benefit to the City. These component units are reflected in the City’s Events Center fund, a proprietary fund. No separate financial statements are issued by the Corporation. Separate financial statements are issued for the Cable Dahmer Arena. The Events Center Community Improvement District (CID) and Crackerneck Creek Transportation Development District (TDD) are included in the financial statements of the City as blended component units. The TDD and CID account for the taxes that are collected within these districts, and they provide services exclusively for the City as the taxes collected by these districts are utilized to repay outstanding debt. The TDD is governed by a 5-member board, appointed by property owners within the district. The City as a property owner appoints three members which are City employees. The CID is governed by a 5member board, of which three are City employees appointed by the City Council. The CID is reported as a blended component unit in the Events Center fund and the TDD is reported as a blended component unit in the TIF Debt Service fund. Financial statements for the TDD and CID may be obtained by writing to the City Clerk, City of Independence, P.O. Box 1019, Independence, MO 64051. The Tax Increment Financing (TIF) Commission of the City of Independence, Missouri (the Commission) is a blended component unit under the TIF Debt Service Fund of the City because the outstanding debt of 37

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 the TIF commission is expected to be repaid from payments in lieu of taxes and economic activity taxes collected by the City. The Commission is governed by an 11-member board, of which six members are appointed by the City Council. The remaining five members (two from the county, two from the local school district and one from other taxing jurisdictions) are appointed by the respective taxing districts’ boards. Financial transactions of the Commission are processed by the Finance Department of the City on the Commission’s behalf. No separate financial statements are issued by the Commission. (b) Basis of Presentation Government-wide Statements. The statement of net position and the statement of activities display information about the City. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations of internal charges and interfund balances have been made to minimize the double-counting of internal activities. However, interfund activity between governmental and business-type activities has not been eliminated. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed, in whole or in part, by fees charged to external parties. The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expense allocations that have been made in the funds have been reversed for the statement of activities. Program revenues include (a) fees, fines, and charges paid by the recipients of goods or services offered by the programs, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fund Financial Statements. The fund financial statements provide information about the City’s funds, including its fiduciary funds. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as non-major funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities. The City reports the following major governmental funds: General Fund – This is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Tax Increment Financing Debt Service Fund – This fund is used to account for the financing of redevelopment project expenses through payments in lieu of taxes and economic activity taxes.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 The City reports the following major enterprise funds: Power and Light Fund – This fund accounts for the acquisition, operation, and maintenance of the City’s power and light utility facilities and services. Water Fund – This fund accounts for the acquisition, operation, and maintenance of the City’s water utility facilities and services. Sanitary Sewer Fund – This fund accounts for the acquisition, operation, and maintenance of the City’s sanitary sewer utility facilities and services. Events Center Fund – This fund accounts for the acquisition and maintenance of the Cable Dahmer Arena, formerly known as the Independence Events Center. This fund also includes the operational activities which are managed by the Corporation, operational activities of the Oak View Group, and the activity of the Events Center CID. The City reports the following fund types of non-major funds: Special Revenue Funds – These funds account for specific revenue sources (other than major capital projects) that are legally restricted or committed to expenditures for specified purposes. Capital Projects Funds – These funds account for the expenditures and related financing sources of major City projects. Debt Service Funds – These funds account for the resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds. Internal Service Funds – These funds account for the costs of fleet maintenance, the Staywell Healthcare program, Workers’ Compensation, Risk Management, Finance and Support Services, and other benefits provided to other departments on a cost-reimbursement basis. Custodial Funds – These funds account for monies held on behalf of the Flexible Benefits Plan for employee contributions made to the City’s Flex Plan for medical and dependent care flexible spending accounts, monies held for the Susie Paxton Block Distinguished Public Service Award, and monies held for the Seniors Travel Program. (c) Basis of Accounting Government-wide, Proprietary, and Fiduciary Fund Financial Statements. The government-wide, proprietary, and custodial fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues related to exchange transactions are recorded when earned, and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Non-exchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in 39

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 connection with a proprietary fund’s principal ongoing operations. recorded as unearned revenue when proceeds are received in advance.

Cost reimbursement grants are

Governmental Fund Financial Statements. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when both measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within 60 days after year-end. Property taxes, sales taxes, franchise taxes, licenses and interest are considered to be susceptible to accrual under this definition. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied, and is not susceptible to reporting under this definition. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital lease are reported as other financing sources. Fiduciary Funds. The accrual basis of accounting is used to present data in the fiduciary fund financial statements. (d) Accounts Receivable Accounts receivable result primarily from sales of electricity, water and sewer services accounted for in the Power and Light, Water, and Sanitary Sewer (Enterprise) Funds, respectively. An estimated amount has been recorded for services rendered, but not yet billed, as of the close of the fiscal year. Accounts receivable are expressed net of allowances for doubtful accounts. Allowances for doubtful accounts are based on historical collection trends for the related receivables. (e) Investments Investments, other than the external investment pool, are recorded at fair value. The City’s investment in the external investment pool (MOSIP) is not SEC registered and is regulated by the State of Missouri. This external investment pool is reported at amortized cost pursuant to the criteria set forth in GASB Statement No. 79, for the liquid series investments within the pool. The City’s position in the pool is the same as the value of the pool shares. (f) Inventory Inventory of the enterprise funds consists of the coal supply and electric, water and sanitary sewer utility materials and is valued at average cost. Inventory of the Internal Service Fund consists of fuel and vehicle and equipment parts and materials and is valued at the lower of cost or market. Inventory of the Events Center consists of merchandise available for sale, valued at lower of cost or market. (g) Prepaid Items Certain payments to vendors reflecting costs applicable to future accounting periods have been recorded as prepaid items in both the government-wide and fund financial statements, and expenditures are recognized using the consumption method.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (h) Interfund Activity The City has the following types of interfund activity: Loans – amounts provided with a requirement for repayment. Interfund loans are reported as interfund receivables (i.e., due from other funds) in lender funds and interfund payables (i.e. due to other funds) in borrower funds. Services provided and used – sales and purchases of goods and services between funds for a price approximating their fair value. Interfund services provided and used are reported as revenues in funds providing the good or service and expenditures or expenses in the fund purchasing the good or service. Unpaid amounts are reported as interfund receivables and payables in the fund balance sheets or fund statements of net position. Reimbursements – repayments from the funds responsible for particular expenditures or expenses to the funds that initially paid for them. Reimbursements are reported as expenditures in the reimbursing fund and as a reduction of expenditures in the reimbursed fund. Transfers – flows of assets (such as cash or goods) without equivalent flows of assets in return and without a requirement for repayment. In governmental funds, transfers are reported as other financing uses in the funds making transfers and as other financing sources in the funds receiving transfers. The payments in lieu of taxes that the enterprise funds pay to the general fund are handled as transfers out for the enterprise funds and transfers in for the General fund. (i) Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, drainage systems, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Capital assets are stated at cost or estimated historical cost. For property acquired from another utility, the difference between the net cost of plant assets recorded by the selling entity and the purchase price is recorded as an acquisition adjustment. Contributions of capital assets received from federal, state, or local sources are recorded as assets and a capital contribution at acquisition value at the time of receipt. Additions, improvements and expenditures that significantly extend the useful life of an asset are capitalized.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Depreciation has been provided over the estimated useful lives using the composite and straight-line methods. Depreciation on utility vehicles and heavy equipment is charged to clearing accounts and redistributed to various operating, construction, and other accounts. The estimated useful lives are as follows:

Years Governmental activities: Buildings and improvements Improvements other than buildings Roads Bridges Drainage systems Office equipment and furniture Mobile equipment – vehicles Mobile equipment – heavy equipment Fire trucks Other equipment Computer equipment

20-40 20 20 40 35 7 5 10 15 10 5

Years Business-type activities: Power and Light Fund: Production plant Transmission plant Distribution plant Transportation equipment General plant Machinery and equipment Water Fund: Source of supply Pumping Water treatment Transmission and distribution system General plant Acquisition adjustment Nonutility property Machinery and equipment Sanitary Sewer Fund: Equipment Sewer system Plant Machinery and equipment Events Center Fund: Buildings and improvements Improvements other than buildings Machinery and equipment

25-45 28-40 25-40 7 19-40 7-25 15-50 20-50 40-50 20-100 5-50 30 10 5-22 5-25 40-100 25 5-20 20-40 20 4-20

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (j) Bond Premiums/Discounts, and Issuance Costs In the government-wide and proprietary fund financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using a method which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed in the period in which the debt is issued. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the period in which the debt is issued. The face amount of debt issued and any related premiums or discounts are reported as other financing sources/uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures during the year they are incurred. (k) Deferred Inflows/Outflows In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has five items that qualify for reporting in this category. They are the deferred charge on refunding, deferred pension related amounts, deferred other post-employment benefit (OPEB) amounts, deferred environmental and regulatory amounts, and goodwill reported in the government-wide and the proprietary funds statements of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The pension related deferred outflow consists of the unamortized portion of the net difference between projected and actual earnings on pension plan investments, plan experience, and changes in assumptions. The OPEB related deferred outflow consists of the unamortized portion of the net difference between projected and actual experience and changes in assumptions. The deferred environmental and regulatory deferred outflow consists of charges permitted under regulatory basis of accounting for the Power and Light fund. The goodwill related deferred outflow consists of goodwill reported in the Events Center enterprise fund, which will be amortized over the remaining life of the related asset (the Events Center). Goodwill became a deferred outflow of resources under GASB Statement No. 85, Omnibus 2017, which the City implemented in the fiscal year ending June 30, 2018. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City has three types of items that qualify for reporting in this category, unavailable/deferred revenues, deferred pension related amounts, and deferred other postemployment benefit (OPEB) amounts. The governmental funds report unavailable revenues from three sources: real estate taxes, special assessment, and leases. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The government-wide and the proprietary fund statements of net position report pension related deferred inflows, which consists of the unamortized portion of the difference between expected and actual experience and plan assumptions, OPEB deferred inflows, which consist of the unamortized portion of the differences between expected and actual experience, real estate taxes, which will become an inflow in the year for which they are levied, and lease revenue is recognized over the term of the leases.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (l) Compensated Absences Under the terms of the City’s personnel policy, City employees are granted vacation based upon length of service. Sick leave is granted at the rate of eight hours per month. Sick leave may be accumulated without limitation. Upon separation, compensation for accrued leave for all employees, other than Firefighers, is paid up to 1,040 hours for sick leave, and a maximum of 400 hours for vacation at the employee’s current rate of pay. Firefighters hired on or before February 1, 2021, are eligible to receive sick leave payout between 520 to 1,560 hours based upon different tiers for their hourly per week schedule and years of service. Firefighters hired after February 1, 2021, are not eligible to receive sick leave payout upon separation. The liability for compensated absences reported in the government-wide and proprietary fund statements has been calculated using the vesting method, in which leave amounts for both employees who currently are eligible to receive termination payments and other employees who are expected to become eligible in the future to receive such payments upon termination are included. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. (m) Pensions The net pension liability, deferred inflows and outflows of resources related to pensions, pension expense, information about the fiduciary net position of the Missouri Local Government Employees Retirement System (LAGERS) and additions to/deductions from LAGERS fiduciary net position have been determined on the same basis as they are reported by LAGERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. (n) Fund Balances In the fund financial statements, governmental funds report the following fund balance classifications: Non-Spendable – consists of amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact. Restricted – consists of amounts where constraints are placed on their use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. Committed – consists of amounts which can only be used for specific purposes pursuant to constraints imposed by formal action (ordinance) of the City Council, which is the highest level of decision-making authority. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified amounts by use of the same formal action that it employed to previously commit the funds. Assigned – consists of amounts which are constrained by City management’s intent for these to be used for a specific purpose but are neither formally restricted by external sources nor committed by City Council action. The City’s Fund Balance Policy authorizes the City Manager to assign amounts for a specific purpose in this category. Likewise, the City Manager has the authority to take necessary actions to un-assign amounts in this category. Encumbrances shall be considered as assigned, unless they specifically meet the requirements to be committed or restricted. 44

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Unassigned – consists of the residual fund balance that does not meet the requirements for the nonspendable, restricted, committed, or assigned classifications. The General Fund is the only fund that would report a positive amount in unassigned fund balances. Residual deficit amounts of other governmental funds are reported as unassigned. The City has a fund balance policy that provides guidance for programs with multiple revenue sources. The policy is to use restricted resources first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. For purposes of fund balance classification expenditures are to be spent from restricted fund balance first, followed in order by committed fund balance, assigned fund balance and lastly unassigned fund balance. The City has a minimum Unassigned Fund Balance policy for the General Fund equal to 16% of annual revenues. If the fund balance falls below this target level of 16% then the City will strive to restore the Unassigned Fund Balance through revenue allocations or expenditure reductions back to the target level over a five (5) year period. Detailed information on the City’s governmental fund balance classifications may be found in Note 15 in the notes to the financial statements. (o) Net Position In the government-wide and proprietary fund financial statements, equity is displayed in three components as follows: Net Investment in Capital Assets – This consists of capital assets, net of accumulated depreciation, less the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction or improvement of those assets. Net investment in capital assets excludes unspent debt proceeds of $74,155 for Power and Light, $10,296,336 for the Events Center, and $11,473,170 for Governmental activities. Also excluded were accounts payable, retainages, and lease and subscription liabilities of $3,829,026 for business-type activities and $2,409,333 for governmental activities. Restricted – This consists of net position that is legally restricted by outside parties or by law through constitutional provisions or enabling legislation. Net position restricted through enabling legislation consists of $13,385,929 for the Street Sales Tax and the License Surcharge; $6,253,614 for the Parks Sales Tax, Parks Property Tax, and Transient Guest Tax; $12,181,382 for Storm Water Sales Tax; $18,283,645 for Police Public Safety Sales Tax, Fire Protection Sales Tax, and Police Use Tax; $677,233 for the Animal Services Use Tax and Health Property Tax; $8,737 for the Independence Square Benefit District; $5,130,994 for debt service; and $11,120,371 for the Events Center Community Improvement District. Unrestricted – This consists of net position that does not meet the definition of “restricted” or “net investment in capital assets.” When both restricted and unrestricted resources are available for use, it is generally the City’s policy to use restricted resources first, then unrestricted resources as they are needed.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (p) Statement of Cash Flows For purposes of the statement of cash flows, short-term investments held in proprietary funds with a maturity date within three months of the date acquired by the City, are considered cash equivalents. (q) Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. (r) Implementation of GASB Pronouncements The City implemented GASB Statement No. 96, Subscription-Based Information Technology Arrangements. The objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for subscription-based information technology arrangements (SBITAs). (s) New Accounting Pronouncements The Governmental Accounting Standards Board has issued several statements that are not yet effective and have not yet been implemented by the City. The statements which might impact the City are as follows: In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections. The primary objective of this statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The City will implement GASB Statement No. 100 with the fiscal year ended June 30, 2024. In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences by aligning the recognition and measurement guidance under a unified model. The City will implement GASB Statement No. 101 with the fiscal year ended June 30, 2025. The City’s management has not yet determined the effect, if any, these statements will have on the City’s financial statements.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (2)

Deposits and Investments Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market-based measurement, not an entity specific measurement. For some assets and liabilities, observable market transactions or market information might be available; for others, it might not be available. However, the objective of a fair value measurement in both cases is the same, that is, to determine the price at which an orderly transaction to sell the asset or to transfer the liability would take place between the market participants at the measurement date under current market conditions. Fair value is an exit price at the measurement date from the perspective of a market participant that controls the asset or is obligated for the liability. The City categorizes its assets and liabilities measured at fair value within the hierarchy established by generally accepted accounting principles. Assets and liabilities valued at fair value are categorized based on inputs to valuation techniques as follows: Level 1 input – Quoted prices for identical assets or liabilities in an active market that an entity has the ability to access. Level 2 input – Quoted prices for similar assets or liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 input – Inputs that are unobservable for the asset or liability which are typically based upon the City’s own assumptions as there is little, if any, related market activity. Hierarchy – The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. Inputs – If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement. For the City, the measurement of the fair value of investments was either based on quoted market prices obtained from exchanges, or from independent pricing sources. Where prices are not available from generally recognized sources the securities are priced using a yield-based matrix to arrive at an estimated fair value.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 The City has no assets reported at fair value on a nonrecurring basis. The securities in the following table are measured at fair value per the disclosure requirements of Governmental Accounting Standards Board (GASB) Statement No. 72. At June 30, 2023 the carrying values of deposits and investments are summarized as follows: Investments measured at fair value: Investments held in trust (bond reserves): Federal National Mortgage Association Other investments: Federal National Mortgage Association Federal Home Loan Mortgage Corporation Federal Home Loan Bank Federal Farm Credit Bank U.S. Treasury Notes U.S. Treasury Bond Investments measured at amortized cost: Money Market - Bond Reserves Local Government Investment Pool - MOSIP Money Market - Work Comp Escrow Total investments Cash and cash equivalents: Deposits and repurchase obligations Petty cash Total

Fair Value Measurement $

2,807,471

Level 2

19,267,417 8,393,408 6,705,258 2,755,051 63,993,112 27,506

Level 2 Level 2 Level 2 Level 2 Level 1 Level 1

43,669,210 34,484,770 201,306 182,304,509

N/A N/A N/A

114,864,930 21,946 297,191,385

Deposits and investments of the City are reflected in the government-wide financial statements as follows:

Pooled cash and investments Current restricted cash and investments Non-current restricted cash and investments

Government-Wide Statement of Net Position

Fiduciary Funds Statement of Net Position

Primary Government Total

243,187,666 6,013,222 47,741,636

248,861 — —

243,436,527 6,013,222 47,741,636

296,942,524

248,861

297,191,385

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Investment Policy Missouri state statutes authorize the City, with certain restrictions, to deposit or invest in open accounts, time deposits, U.S. Treasury notes, and certificates of deposit. Statutes also require that collateral pledged must have a fair value equal to 100% of the funds on deposit, less insured amounts. Collateral securities must be held by the City or a disinterested third party and must be of the kind prescribed by state statutes and approved by the State of Missouri. The City maintains a cash and investment pool, which is available for use by most funds. Substantially all excess cash is invested in U.S. Government securities, a local government investment pool, and money market funds. Each fund’s portion of this pool is displayed as pooled cash and investments or in restricted assets. Interest earned on the cash and cash equivalents is allocated to the funds on the basis of average monthly cash and investment balances, and investment interest earned is based on each funds share of the investment balances at the end of each month. Cash and investments are held separately by some of the City’s funds. Additionally, certain restricted assets, related to bond ordinances and indentures and capital lease certificates, are held in escrow by financial institutions’ trust departments. At June 30, 2023, some funds did reflect a loss under their investment income which is due to required market value adjustments and each fund’s cash position and portion of the investment pool. Credit Risk/Concentration of Credit Risk The credit risk for investments is the possibility that the issuer/counterparty to an investment will be unable to fulfill its obligations. It is the City’s policy to limit its investments to Certificates of Deposit and Bonds or other obligations of the United States. The City’s investment policy does not specify maximum or minimum investment concentrations by investment type. The credit rating and concentration of the City’s investment in debt securities are as follows:

Issuer Federal Home Loan Bank Federal National Mortgage Association Federal Home Loan Mortgage Corporation Federal Farm Credit Bank Local Government Investment Pool - MOSIP

Moody's Credit Rating Aaa Aaa Aaa Aaa AAAm (S & P)

Percent of Total Investments 3.68% 12.11% 4.60% 1.51% 18.92%

Custodial Credit Risk The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the City will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City’s policy is to collateralize the demand deposits and repurchase agreements with securities held by the financial institution’s agent and in the City’s name.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 At June 30, 2023, the City’s deposits and repurchase obligations were insured by Federal depository insurance and uninsured deposits and repurchase obligations were fully collateralized by securities held in the City’s name by their financial institution’s agent. The City’s securities were registered and held by the City’s financial institution in the City’s name. Accordingly, management has determined that none of the City’s deposits or investments were exposed to custodial credit risk as of June 30, 2023. Interest Rate Risk The City’s investment policy does not limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2023, the City’s investment portfolio had the following investments and maturities: Total

6 Months or Less

34,484,770 43,669,210 201,306

— — —

22,074,887 8,393,408 6,705,258 2,755,051

5,105,212 3,008,036 — 507,829

8,615,311 — 3,840,734 2,247,222

8,354,364 3,776,364 1,625,348 —

— 1,609,008 218,059 —

— — 1,021,117 —

— — — —

63,993,113 27,506 $ 182,304,509

1,743,245 — 88,719,608

10,744,219 — 25,447,486

8,376,305 — 22,132,381

18,298,640 — 20,125,707

17,272,579 27,506 18,321,202

7,558,125 — 7,558,125

Investment Type Local Government Investment Pool - MOSIP Money Market - Bond Reserves Money Market - Work Comp Escrow U.S. Government Securities Federal National Mortgage Association Federal Home Loan Mortgage Corporation Federal Home Loan Bank Federal Farm Credit Bank Notes U.S. Treasury Notes U.S. Treasury Bond Total investments

6 - 12 Months

12 - 24 Months

24 - 36 Months

36 - 48 Months

48 - 60 Months

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Truman Heartland Community Foundation The City has various fund accounts at the Truman Heartland Community Foundation (THCF), where donations are received for special City projects. THCF is a public charity which services communities in and around Eastern Jackson County. At June 30, 2023 the carrying values of deposits are summarized as follows: Project Fire Safety Equipment Sermon Memorial Room Sermon/Old Spring Project Truman Memorial Building Restoration Truman Memorial Walking Trail George Owens Nature Park Palmer Center Senior Services Palmer Senior Center Memorial Endowment - Palmer Senior Center McCoy Park Inclusive Play Animal Shelter Endowment - All Creatures Fund Friends of Truman Depot Waggoner Memorial Pioneer Statue

$ (3)

Balance 12,097 34,125 33,222 2,363 15,484 199 6,386 5,627 89,612 24 22,794 83,814 17,205 4,562 4,567 332,081

Tax Revenue Tax revenue, including interest and penalties for the year ended June 30, 2023 is as follows:

General Real Estate Tax Railroad Utilities Tax Cigarette Tax Transient Guest Tax Sales Tax Use Tax Franchise Tax

TIF Debt Service

Nonmajor Governmental Funds

Total

5,642,530 61,821 354,634 — 21,312,328 1,023,612 9,228,632

10,441,314 — — — 8,492,253 — —

2,683,959 — — 2,322,046 33,828,996 6,545,350 —

18,767,803 61,821 354,634 2,322,046 63,633,577 7,568,962 9,228,632

37,623,557

18,933,567

45,380,351

101,937,475

The City’s real estate tax is levied each November 1 on the assessed value as of the prior January 1 for all real property located in the City. Real estate taxes are due on December 31 following the levy date. On January 1, a lien attaches to all property. Property taxes are recognized as a receivable at the time they become an enforceable legal claim, and revenue is recognized in the year for which the property tax is 51

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 levied. Jackson County bills and collects all real estate taxes for the City and charges a 1.5% to 1.6% commission on all taxes collected. Assessed values are established by the Clay and Jackson County assessors, subject to review by the Jackson County Board of Equalization and State Tax Commission. The assessed value for real property, including railroad and utility properties, located in the City as of January 1, 2022, on which the fiscal 2023 levy was based, was $1,788,344,428. The City is permitted by Missouri state statutes to levy taxes up to $1.00 per $100 of assessed valuation for general governmental services, other than payment of principal and interest on long-term debt, up to $0.40 per $100 of assessed valuation for public health and recreation, and in unlimited amounts for the payment of principal and interest on long-term debt. Property tax levies per $100 assessed valuation for the year ended June 30, 2023 were $0.4119 for the General Fund, $0.1940 for Public Health and Recreation, and $0.5878 for the Independence Square Benefit District Fund. (a) Tax Abatements Chapter 353 The City approves property tax abatements pursuant and subject to the terms of Missouri Statute 353 (Urban Redevelopment Corporations Law). The purpose of Chapter 353 Tax Abatement is to encourage the redevelopment of blighted areas by providing real property tax abatement. As of June 30, 2023, the City provides Chapter 353 Tax Abatements through four programs that provide property tax abatement to encourage rehabilitation of properties that improve the safety and health of the home occupants, and help revitalize the redevelopment area. Abatements are obtained through application by the property owner, including inspection by City staff showing proof that improvements were made, and equals 100% of the real estate tax for years 1 through 10, and 50% of the real estate tax for years 11 through 25. The amount of the abatement is deducted from the property owner’s tax bill. Abatements are not given until after the improvements have been made, and so there is no recapture provision. For the fiscal year ending June 30, 2023, the abated tax amounts were as follows:

Tax Abatement Program Fairmount Carlisle Independence Square Midtown Truman Road Corridor St. Clair Park Total

Abated Tax 21,074 20,209 37,043 262 78,588

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Chapter 100 The City approves property tax abatements pursuant and subject to the terms of Missouri Statute 100 which authorizes the City to issue Industrial Development Bonds to finance industrial development projects for private corporations, partnerships or individual companies. Under this type of financing, the company passes the title in the real property involved to the City which results in the bond proceeds being tax exempt resulting in a tax abatement for the company. The purpose of Chapter 100 Tax Abatement is to encourage retention and expansion of industrial development projects for the purchase, construction, extension and improvement of warehouses, distribution facilities, research and development facilities, office industries, agricultural processing industries, service facilities that provide interstate commerce, industrial plants and commercial facilities. As of June 30, 2023, the City provides Chapter 100 Tax Abatements through three programs. Facilities receiving tax abatements under Chapter 100 make payments in lieu of taxes (PILOTS) to the City. The City tax abated under the following Chapter 100 program to Unilever was $93,597. Years 1 through 10 11 through 15 16 through 20

PILOT Percentage 20% 25% 50%

Basis Real property taxes that would otherwise be due on the project improvements Real property taxes that would otherwise be due on the project improvements Real property taxes that would otherwise be due on the project improvements

1 2 3 4 5

0% 5% 10% 15% 20%

Personal property taxes that would otherwise be due on the project equipment Personal property taxes that would otherwise be due on the project equipment Personal property taxes that would otherwise be due on the project equipment Personal property taxes that would otherwise be due on the project equipment Personal property taxes that would otherwise be due on the project equipment

The City tax abated under the following Chapter 100 program to Ronson Machine and Manufacturing was $2,196. Years 1 through 2

PILOT Percentage Fixed

Basis Real property taxes in the amount equal to the taxes due in 2018

3 through 12

25%

Real property taxes in the amount equal to the taxes due in 2018, increased in each odd year by 2% plus 25% of the taxes that would otherwise be due on the project improvements

2 through 12

25%

Personal property taxes that would otherwise be due on the project equipment

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 The City tax abated under the following Chapter 100 program to 39th Place Apartments was $38,528. Years 1 through 5

PILOT Percentage Fixed

Basis Real property taxes in the amount per the Chapter 100 agreement

6 through 16

2% Increase

Real property taxes increased in each odd year by 2%

Tax Increment Financing The City utilizes Tax Increment Financing (TIF) for economic development projects pursuant to the terms of Missouri Statute 99.800 through 99.865 (TIF Act). The purpose of TIF projects is to finance improvement within a geographically defined area called a redevelopment project area, which has been found by the City Council to be either a blighted, conservation, or economic development area. TIF projects allow the City to finance certain redevelopment costs from the revenue generated from (1) real estate taxes, measured by the net increase in assessed valuation resulting from redevelopment and (2) a percent of local sales tax revenues generated by new economic activities in the redevelopment area. These real estate taxes and sales tax revenues are allocated to special allocation funds set up for each TIF project. Under GASB Statement No. 77, these types of allocations are considered a tax abatement. For the fiscal year ending June 30, 2023, the City reported 19 TIF projects, with 16 active projects, and abated $1,031,342 in real estate tax and $8,059,668 in sales tax revenue.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (4)

Intergovernmental Revenue and Receivables Intergovernmental revenue during fiscal year 2023 consisted of the following:

General Fund Federal Department of Housing & Urban Development Community Development Block Grant Neighborhood Stabilization Program Home Investment Partnership Department of Agriculture Department of Justice Department of Transportation Department of Health & Human Services Departments of Treasury Corporation for National & Community Service Executive Office of the President Department of Homeland Security Total Federal

Nonmajor Governmental Funds

Total

State & Local Department of Health & Human Services Department of Public Safety Department of Revenue Motor Vehicle Fuel Tax Motor Vehicle License Motor Vehicle Sales Tax Financial Institutions Tax Missouri Highway & Transportation Commission Missouri Department of Agriculture Jackson County Anti-Drug Tax Jackson County DARE Other Total State & Local Grand Total

— — — — — — — — — — — —

1,181,709 308 563,852 125 285,191 3,540,250 757,407 6,605,954 1,480 227,669 240,560 13,404,505

— —

99,056 15,726

4,222,710 576,654 1,294,000 29,726 — — 695,037 225,927 — 7,044,054 7,044,054

— — — — 83,599 2,000 — — 34,566 234,947 13,639,452

4,222,710 576,654 1,294,000 29,726 83,599 2,000 695,037 225,927 34,566 7,279,001 20,683,506

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Amounts due from other governments at June 30, 2023 are as follows:

Federal General Fund : Department of Revenue Motor Vehicle Fuel Tax Motor Vehicle Sales Tax Motor Vehicle License Fees DARE Marketplace Shopping Center Transportation Development Dist

Local

Total

— — — — — —

726,057 118,541 137,442 — — 982,040

— — — 113,165 75 113,240

726,057 118,541 137,442 113,165 75 1,095,280

— — — — — — —

126,000 — — — — — 126,000

— 137,046 12,082 64,238 1,983 22,801 238,150

126,000 137,046 12,082 64,238 1,983 22,801 364,150

375,108 106,324 115,197 52,905 1,183,902 181,596 399,333 118,332 — 2,532,697

— — — — — 13,238 — — — 13,238

— — — — — — — — 5,946 5,946

375,108 106,324 115,197 52,905 1,183,902 194,834 399,333 118,332 5,946 2,551,881

185,328 185,328

— —

185,328 185,328

275,283 275,283

— —

275,283 275,283

2,993,308

1,121,278

357,336

4,471,922

TIF Debt Service: State Sales Tax County Sales Tax Kansas City Zoo Tax Noland Road Community Improvement District Marketplace Community Improvement District 39th St Transportation Development District

Nonmajor Governmental Funds: Department of Housing & Urban Development Community Development Block Grant Home Investment Partnership Neighborhood Stabilization Program Department of Justice Department of Transportation Department of Health & Human Services Department of Homeland Security Executive Office of the President Other

Power and Light Fund: Federal Communications Commission

Sanitary Sewer Fund Department of Homeland Security

Totals

State

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (5)

Interfund Activity (a) Interfund Balances Interfund balances at June 30, 2023, consisted of the following: Due from Nonmajor Governmental Due to: Governmental activities: General Fund Nonmajor governmental Total governmental activities Business-type activities: Power and Light Fund Water Fund Sanitary Sewer Fund

Due from Events Center

Due from Internal Service Funds

Total

934,157 16,155

1,718 —

31,138 —

491,731 —

1,458,744 16,155

950,312

1,718

31,138

491,731

1,474,899

— — —

491,731 491,731 491,731

—

1,475,193

950,312

1,718

31,138

1,966,924

2,950,092

Total business-type activities Total

Due from TIF Debt Service

Interfund payables and receivables represent loans between funds for operating purposes, short-term negative cash balances and pending reimbursements. The Crackerneck Creek TDD, which is reported as a component unit in the TIF Debt Service category, owes $1,718 to the General Fund for administrative fees. The Events Center CID, which is reported as a component unit in the Event Center Category, owes $31,138 to the General Fund for administrative fees. All other amounts are for short-term loans for negative cash balances at June 30, 2023.

(b) Interfund Charges for Support Services Interfund charges for support services and rent paid to the General Fund during fiscal year 2023 were as follows: Interfund Charges Nonmajor Governmental Funds Power and Light Fund Sanitary Sewer Fund Water Fund Internal Service Funds

99,810 1,168,553 490,886 527,821 67,530

2,354,600

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Interfund charges for customer service support services and telephone operators were paid to the Water Fund during fiscal year 2023, and are included as a credit to Water’s operating expenses as follows: Power and Light Fund Sanitary Sewer Fund

$ $

2,451,852 907,367 3,359,219

Interfund charges for meter reading services were paid to the Power and Light Fund during fiscal year 2023, and are included as a credit to Power and Light’s operating expenses as follows: Sanitary Sewer Fund Water Fund

$ $

552,184 1,540,084 2,092,268

(c) Payments in Lieu of Taxes The payments in lieu of taxes of $14,824,658, $3,341,507, and $3,593,954 in fiscal year 2023 by the Power and Light, Water, and Sanitary Sewer (Enterprise) Funds, respectively, to the General Fund approximate franchise taxes and real estate taxes on plant in service. The franchise tax rate, established by City ordinance at 9.08%, is applied to gross billed operating revenues less amounts written off to arrive at the franchise tax due the General Fund. In addition to the 9.08% applied to operating revenues, the City also charges a real estate tax as part of the payment in lieu of taxes. The real estate taxes are charged at a set amount for the plant assets of the Enterprise Funds. (d) Interfund Transfers Interfund transfers for the year ended June 30, 2023, consisted of the following: Transfers Out

Transfers In: Tax Increment Financing Sanitary Sewer Fund Internal Service Fund Nonmajor governmental Total Primary Government

General

Tax Increment Financing

Nonmajor Governmental

— 10,000 — 207,275 217,275

14,110,908 — — — 14,110,908

— — 3,900,000 2,054,279 5,954,279

Sanitary Sewer — — — 8,357 8,357

Total 14,110,908 10,000 3,900,000 2,269,911 20,290,819

Transfers are for capital projects, general operations and debt service payments. There is a transfer for $742,289 between the Events Center CID and TIF Debt Service funds that is eliminated from the Events Center reporting upon consolidation within the financial statements.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (6)

Capital Assets Capital asset activity for the year ended June 30, 2023 is as follows: Balance as Restated June 30, 2022 Governmental activities: Nondepreciable capital assets: Land Construction work in progress

Total nondepreciable capital assets

Additions

Retirements

Balance June 30, 2023

32,184,386 15,085,790

— 13,489,988

— (3,923,569)

32,184,386 24,652,209

47,270,176

13,489,988

(3,923,569)

56,836,595

Depreciable capital assets: Land improvements Buildings Building improvements Improvements other than buildings Office furniture and equipment Computer equipment Mobile equipment Other equipment Infrastructure

10,156,469 59,141,797 19,929,714 37,385,061 443,946 10,972,280 28,103,522 13,279,845 448,432,510

— — 17,191 77,050 — 678,456 2,671,639 529,745 3,997,664

— — — — — (1,288,986) (1,189,489) — —

10,156,469 59,141,797 19,946,905 37,462,111 443,946 10,361,750 29,585,672 13,809,590 452,430,174

Total depreciable capital assets

627,845,144

7,971,745

(2,478,475)

633,338,414

Less accumulated depreciation for: Land improvements Buildings Building improvements Improvements other than buildings Office furniture and equipment Computer equipment Mobile equipment Other equipment Infrastructure

(5,979,748) (24,534,969) (13,920,633) (27,047,701) (434,810) (5,854,767) (16,761,485) (9,607,517) (270,301,460)

(527,177) (1,320,181) (822,648) (1,798,559) (4,227) (895,846) (2,222,502) (652,519) (14,389,548)

— — — — — 622,814 1,189,489 — —

(6,506,925) (25,855,150) (14,743,281) (28,846,260) (439,037) (6,127,799) (17,794,498) (10,260,036) (284,691,008)

Total accumulated depreciation

(374,443,090)

(22,633,207)

1,812,303

(395,263,994)

Total depreciable capital assets, net

253,402,054

(14,661,462)

(666,172)

238,074,420

89,728 — 77,899 2,095,347 2,262,974

2,827 43,307 8,231 1,119,348 1,173,713

(7,097) — — — (7,097)

85,458 43,307 86,130 3,214,695 3,429,590

(15,629) — — — (15,629) 2,247,345

(17,251) (11,525) (32,373) (1,092,387) (1,153,536) 20,177

— — — — — (7,097)

(32,880) (11,525) (32,373) (1,092,387) (1,169,165) 2,260,425

302,919,575

(1,151,297)

(4,596,838)

297,171,440

Leased and subscription assets being amortized Machinery and equipment Machinery and equipment - internal service funds Subscriptions Subscriptions - internal service funds Total amortized assets Less accumulated amortization: Machinery and equipment Machinery and equipment - internal service funds Subscriptions Subscriptions - internal service funds Total accumulated amortization Total amortized assets, net Governmental activities capital assets, net

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Depreciation and amortization expense was charged to functions as follows: Administrative Services Public Safety Municipal Services (Public Works) Health and Animal Services Culture and Recreation Community Development Storm Water General Government Total

Internal Service Funds: Central Garage Enterprise Resource Planning Total depreciation expense

156,659 3,299,596 13,585,142 24,775 2,012,177 38,589 1,887,165 1,020,367 22,024,470 11,696 1,714,227 23,750,393

The difference of $36,350 between the depreciation and amortization additions and the depreciation and amortization expense was due to fully depreciated assets being transferred to the Governmental funds from the Business-type funds.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Balance June 30, 2022 Business-type activities: Power and Light Fund: Nondepreciable capital assets: Land Construction in progress

Additions

Retirements

Balance June 30, 2023

4,828,430 37,962,022

— 19,379,931

— (22,804,601)

4,828,430 34,537,352

42,790,452

19,379,931

(22,804,601)

39,365,782

94,636,716 45,898,894 192,066,489 18,735,454 2,755,568

2,046,385 174,347 10,133,939 98,510 —

— (7,777) (1,071,701) — —

96,683,101 46,065,464 201,128,727 18,833,964 2,755,568

Total infrastructure

354,093,121

12,453,181

(1,079,478)

365,466,824

Machinery and equipment Total depreciable capital assets

29,199,196

2,146,463

(4,564,165)

26,781,494

383,292,317

14,599,644

(5,643,643)

392,248,318

Less accumulated depreciation: Infrastructure Machinery and equipment

(185,295,009) (20,175,942)

(10,610,315) (1,082,084)

1,257,248 4,564,165

(194,648,076) (16,693,861)

* Total accumulated depreciation

(205,470,951)

(11,692,399)

5,821,413

(211,341,937)

177,821,366

2,907,245

177,770

180,906,381

— —

492,172 492,172

— —

492,172 492,172

— — —

(58,445) (58,445) 550,617

— — —

(58,445) (58,445) 433,727

220,611,818

22,837,793

(22,626,831)

220,705,890

Total nondepreciable capital assets Depreciable capital assets: Infrastructure: Production plant Transmission plant Distribution plant General plant Other

Total depreciable capital assets, net Subscription assets being amortized: Subscriptions Total amortized assets Less accumulated amortization: Subscriptions Total accumulated amortization Total amortized assets, net Total power and light capital assets

* See page 64 note regarding depreciation.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Balance June 30, 2022 Water Fund: Nondepreciable capital assets: Land Construction in progress Total nondepreciable capital assets Depreciable capital assets: Infrastructure: Nonutility property Source of supply Pumping plant Treatment plant Transmission plant General plant Other Total infrastructure Machinery and equipment Total depreciable capital assets Less accumulated depreciation: Infrastructure Machinery and equipment * Total accumulated depreciation Total depreciable capital assets, net Total water capital assets

Additions

Retirements

Balance June 30, 2023

2,164,901 4,211,825

— 6,327,581

— (91,709)

2,164,901 10,447,697

6,376,726

6,327,581

(91,709)

12,612,598

40,014 8,287,225 17,174,142 26,330,309 100,781,861 2,182,641 12,547,766 167,343,958

— — 19,517 4,047 258,371 481,858 — 763,793

— — (41,093) — (79,024) (486,576) — (606,693)

40,014 8,287,225 17,152,566 26,334,356 100,961,208 2,177,923 12,547,766 167,501,058

8,103,173

—

8,103,173

175,447,131

763,793

(606,693)

175,604,231

(64,140,537) (6,011,364)

(2,895,999) (546,138)

134,162 486,576

(66,902,374) (6,070,926)

(70,151,901)

(3,442,137)

620,738

(72,973,300)

105,295,230 111,671,956

(2,678,344) 3,649,237

14,045 (77,664)

102,630,931 115,243,529

* See page 64 note regarding depreciation.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Balance June 30, 2022 Sanitary Sewer Fund: Nondepreciable capital assets: Land Construction in progress Total nondepreciable capital assets Depreciable capital assets: Infrastructure: Nonutility property Collection plant Pumping plant Treatment plant General plant Total infrastructure

Retirements

Balance June 30, 2023

330,191 12,073,493

— 2,927,845

— (4,418,268)

330,191 10,583,070

12,403,684

2,927,845

(4,418,268)

10,913,261

46,368 125,860,214 70,809,113 13,509,158 1,219,348 211,444,201

— 4,115,077 403,728 1,081 — 4,519,886

— — (17,873) (10,583) — (28,456)

46,368 129,975,291 71,194,968 13,499,656 1,219,348 215,935,631

7,294,058

447,307

(119,806)

7,621,559

218,738,259

4,967,193

(148,262)

223,557,190

(82,726,645) (5,805,224)

(4,111,057) (300,893)

28,456 119,806

(86,809,246) (5,986,311)

(88,531,869)

(4,411,950)

148,262

(92,795,557)

130,206,390

555,243

—

130,761,633

2,223 2,223

— —

2,223 2,223

(642) (642)

— —

(1,284) (1,284)

1,581

(642)

—

939

Total sewer capital assets 142,611,655 * See page 64 note regarding depreciation.

3,482,446

(4,418,268)

141,675,833

Machinery and equipment Total depreciable capital assets Less accumulated depreciation: Infrastructure Machinery and equipment Total accumulated depreciation Total depreciable capital assets, net Leased assets being amortized Machinery and equipment Total amortized assets Less accumulated amortization: Machinery and equipment Total accumulated amortization Total amortized assets, net

Additions

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023

Events Center fund: Nondepreciable capital assets: Land $ Total nondepreciable capital assets Depreciable capital assets: Infrastructure Machinery and equipment Total depreciable capital assets Less accumulated depreciation: Infrastructure Machinery and equipment Total accumulated depreciation Total depreciable capital assets, net Total events center capital assets Total business-type activities $ capital assets

Balance June 30, 2022

Additions

Retirements

Balance June 30, 2023

5,796,315

—

5,796,315

—

5,796,315

67,566,073 6,799,318

3,171,076 562,685

— (161,773)

70,737,149 7,200,230

74,365,391

3,733,761

(161,773)

77,937,379

(20,925,495) (3,621,017)

(1,807,084) (552,505)

— 161,773

(22,732,579) (4,011,749)

(24,546,512)

(2,359,589)

161,773

(26,744,328)

55,615,194 55,615,194

1,374,172 1,374,172

— —

51,193,051 56,989,366

530,510,623

31,343,648

(27,122,763)

534,614,618

Depreciation and amortization expense was charged to functions as follows: Business-type activities: Power and Light Water Sanitary Sewer Events Center Total business-type activities depreciation and amortizaton expense

11,752,337 3,253,813 4,407,896 2,359,589

21,773,635

Depreciation expense charged to Power and Light and Water funds may be different than the additions to accumulated depreciation because certain depreciation related to utility vehicles and heavy equipment are charged to clearing accounts and redistributed to various operating, construction, and other capital accounts. As of June 30, 2023 the difference for Power and Light is $59,938 and the difference for Water is $188,324. Under accounting practices promulgated in the utility industry by the Federal Energy Regulatory Commission (FERC) and the National Association of Regulatory Utility Commissioners (NARUC), for business-type activities, units retired plus the cost of removal, less salvage, are charged against accumulated depreciation, with no gain or loss recognized. The retirement of these assets can cause the decrease in accumulated depreciation to be higher than the decrease of the capital asset due to the cost of removal. Depreciation expense charged to the Sanitary Sewer fund is different than the additions to the accumulated depreciation by $4,054 due to the addition of an older fully depreciated asset.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (7) Long-Term Obligations The State Constitution permits a city, by vote of two-thirds of the voting electorate, to incur general obligation indebtedness for “city purposes,” not to exceed 10% of the assessed value of taxable tangible property. The State Constitution also permits a city, by vote of two-thirds of the voting electorate under a special election or four-sevenths under a general election, to incur additional general obligation indebtedness not exceeding, in the aggregate, an additional 10% of the assessed value of taxable tangible property for the purpose of acquiring rights-of-way, constructing, extending, and improving streets and avenues and/or sanitary or storm sewer systems, and purchasing or constructing waterworks, electric, or other plants, provided that the total general obligation indebtedness of the city does not exceed 20% of the assessed valuation of taxable property. As of June 30, 2023, the City has no general obligation debt outstanding. The following is a summary of changes in long-term liabilities of the City for the year ended June 30, 2023: Beginning Balance As Restated Governmental activities: Loans and notes payable: Loans payable TIF loans Financed purchase obligation Neighborhood Improvement District (NID)

Premium (discount), net Total loans and note payable Other liabilities: Compensated absences Total OPEB liability Self-insurance claims payable Net pension liability Lease liability Lease liability - internal service funds Subscription liabiltiy Subscription liabiltiy - internal service funds Total other liabilities Total Governmental Activities

Additions

Reductions

Ending Balance

Amount Due Within One Year

17,940,000 108,255,000 1,456,845

— — —

1,310,000 4,775,000 263,032

16,630,000 103,480,000 1,193,813

1,345,000 6,585,000 270,058

20,000 4,882,687

— —

8,000 345,288

12,000 4,537,399

12,000 (36)

132,554,532

—

6,701,320

125,853,212

8,212,022

17,149,764 117,512,374 9,574,893 18,476,896 72,739 — 77,899 1,356,247 164,220,812

6,594,934 3,155,800 24,318,310 14,693,642 2,827 40,962 8,231 833,430 49,648,136

6,891,775 409,066 23,301,508 — 23,747 11,230 45,577 842,891 31,525,794

16,852,923 120,259,108 10,591,695 33,170,538 51,819 29,732 40,553 1,346,786 182,343,154

7,519,880 5,999,166 4,097,884 — 18,949 14,282 37,810 932,494 18,620,465

296,775,344

49,648,136

38,227,114

308,196,366

26,832,487

The compensated absences, other post-employment benefit liabilities and pension liabilities attributable to governmental activities will be liquidated primarily by the General Fund. The self-insurance claims liability will be paid from the Staywell Health Care Fund and Workers’ Compensation Fund.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 The following is a summary of changes in long-term debt of the Proprietary Funds for the year ended June 30, 2023: Beginning Balance Business-type activities: Power and Light Fund: Revenue bonds Premium on bonds payable Total revenue bonds

Reductions

Amount Due Within One Year

119,805,000 5,596,751 125,401,751

— — —

3,210,000 356,029 3,566,029

116,595,000 5,240,722 121,835,722

3,555,000 — 3,555,000

Compensated absences Total OPEB liability Net pension liability Subscription liability Total Power and Light Fund Water Fund: Revenue bonds Premium on bonds payable Total revenue bonds

5,370,613 40,741,965 3,920,068 — 175,434,397

2,035,605 — 6,554,474 492,172 9,082,251

2,160,207 5,006,838 — 128,559 10,861,633

5,246,011 35,735,127 10,474,542 363,613 173,655,015

1,896,311 1,782,659 — 117,635 7,351,605

18,545,000 404,836 18,949,836

—

— —

1,785,000 55,274 1,840,274

16,760,000 349,562 17,109,562

1,880,000 — 1,880,000

Compensated absences Total OPEB liability Net pension liability Total Water Fund Sanitary Sewer Fund: Revenue Bonds Premium on bonds payable Discount on bonds payable Total revenue bonds

1,245,062 12,655,200 1,136,285 33,986,383

585,002 — 1,818,364 2,403,366

649,094 2,432,873 — 4,922,241

1,180,970 10,222,327 2,954,649 31,467,508

379,362 509,944 — 2,769,306

85,285,000 4,746,569 (35,189) 89,996,380

— — — —

3,535,000 290,606 (1,599) 3,824,007

81,750,000 4,455,963 (33,590) 86,172,373

3,615,000 — — 3,615,000

Compensated absences Total OPEB liability Net pension liability Lease liability Total Sanitary Sewer Fund Events Center Fund: Revenue bonds Premium on bonds payable Discount on bonds payable Total Events Center Fund

903,974 9,071,577 737,848 1,545 100,711,324

402,360 454,899 1,221,611 — 2,078,870

414,537 — — 683 4,239,227

891,797 9,526,476 1,959,459 862 98,550,967

349,619 475,231 — 683 4,440,533

86,710,000 1,373,237 — 88,083,237

— — — —

3,295,000 107,441 — 3,402,441

83,415,000 1,265,796 — 84,680,796

3,400,000 — — 3,400,000

398,215,341

13,564,487

23,425,542

388,354,286

17,961,444

Total business-type activities

Additions

Ending Balance

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Debt service requirements on long-term debt with scheduled maturities at June 30, 2023 are as follows: Governmental Activities Loans Payable Principal 2024

2025

NID Payable Interest

Principal

TIF Loans

Interest

Principal

Total Interest

Principal

Interest

1,345,000

404,446

12,000

705

6,585,000

4,973,287

7,942,000

5,378,438

1,385,000

369,897

—

6,655,000

4,632,426

8,040,000

5,002,323

2026

1,420,000

336,380

—

6,635,000

4,109,577

8,055,000

4,445,957

2027

1,455,000

302,016

—

8,085,000

3,371,794

9,540,000

3,673,810

2028

1,490,000

266,805

—

6,245,000

3,047,019

7,735,000

3,313,824

2029 - 2033

6,860,000

801,988

—

15,925,000

12,551,206

22,785,000

13,353,194

2034 - 2038

2,675,000

97,526

—

15,075,000

9,356,163

17,750,000

9,453,689

2039 - 2043

—

11,425,000

6,678,431

11,425,000

6,678,431

2044 - 2048

—

15,930,000

3,877,188

15,930,000

3,877,188

2049 - 2051 $

—

10,920,000

986,400

10,920,000

986,400

16,630,000

2,579,058

12,000

705

103,480,000

53,583,491

120,122,000

56,163,254

Business-type Activities Water

Power and Light Principal 2024

2025

Sewer Interest

Principal

3,555,000

5,071,094

1,880,000

652,938

3,615,000

2,612,978

3,730,000

4,893,344

1,950,000

578,138

3,695,000

2,530,079

Principal

Total

Events Center

Interest

Principal

Interest

Principal

3,400,000

2,379,093

12,450,000

10,716,103

3,640,000

2,285,184

13,015,000

10,286,745

2026

3,915,000

4,706,844

2,035,000

498,438

3,790,000

2,439,464

3,890,000

2,184,757

13,630,000

9,829,503

2027

4,110,000

4,511,094

2,120,000

415,338

3,895,000

2,334,617

4,145,000

2,077,527

14,270,000

9,338,576

2028

4,315,000

4,305,594

2,210,000

325,975

4,010,000

2,213,725

4,415,000

1,963,376

14,950,000

8,808,670

2029 - 2033

25,040,000

18,067,219

6,565,000

320,556

22,210,000

8,933,352

26,745,000

7,625,918

80,560,000

34,947,045 19,697,996

2034 - 2038

29,255,000

11,534,819

—

23,940,000

4,943,868

37,180,000

3,219,309

90,375,000

2039 - 2043

25,160,000

6,312,800

—

10,445,000

2,120,399

—

35,605,000

8,433,199

2044 - 2047

17,515,000

1,367,500

—

6,150,000

123,000

—

23,665,000

1,490,500

116,595,000

60,770,308

16,760,000

2,791,383

81,750,000

28,251,482

83,415,000

21,735,164

298,520,000

113,548,337

. Included in the Events Center maturity schedule above is the following privately placed Series 2022 revenue bonds: Events Center - Privately Placed Principal 2024

Interest

2,610,000

1,757,243

2025

2,830,000

1,687,034

2026

3,055,000

1,610,907

2027

3,290,000

1,528,727

2028

3,025,000

1,440,226

2029 -2033

18,175,000

5,933,468

2034 - 2038

32,340,000

2,840,909

65,325,000

16,798,514

Acceleration Clauses In the event of the City’s default on debt service payments, all TIF loans and business-type revenue bonds have acceleration clauses. If 25% of the bondholders vote to enforce the acceleration clause then the full amounts of the outstanding principal and accrued interest are due immediately. The Events Center Series 2022 bonds are privately placed. In the event of the City’s default on debt service payments, the Trustee may declare that the full amounts of the outstanding principal and accrued interest are due immediately.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (a) Governmental Activities (1) Loans Payable Governmental activities loans payable at June 30, 2023 is comprised of the following: $17,940,000 Lease Purchase for Deferred Maintenance, annual installments of $1,220,000 to $1,575,000; interest at 2.420% - paid from the Street Improvements Sales Tax fund Total Governmental Activities Loans Payable

16,630,000

The total loan payable is privately placed.

(2) Neighborhood Improvement District The Neighborhood Improvement District Bonds constitute a valid and legally binding indebtedness of the City, payable as to both principal and interest from special assessments to be assessed on certain real property within the District which will be benefited by the improvements and, if not so paid, from monies in the Bond Reserve Fund and, to the extent required, from first available monies in the City’s general fund or other legally available fund. The full faith and credit of the City is irrevocably pledged for the prompt payment, when due, of the principal and interest on the Bonds; provided, however, the City is not obligated nor authorized to levy taxes for the purpose of paying principal of or interest on the Bonds and the taxing power of the City is not pledged to the payment of the Bonds. Neighborhood Improvement District bonds payable at June 30, 2023 are comprised of the following: $111,000 Series 2004 (Fall Drive Sanitary Sewer Project) annual installments of $5,000 to $6,000 through 2024; interest at 5.375% to 5.50% - paid from the Debt Service fund Total Neighborhood Improvement District

12,000

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (3) Financed Purchase Obligations and Leases Financed Purchase Obligations Financed purchase obligations at June 30, 2023 are comprised of the following: PNC Equipment Finance (fire truck) annual installments of $51,525 to $71,106 through 2026; interest at 3.00% - paid from the Fire Sales Tax fund

Motorola Solutions (radio equipment) annual installments of $158,096 to $178,587 through 2027; interest at 2.48% - paid from the General fund and Police Sales Tax fund with allocations to the Enterprise funds and Storm Water Sales Tax fund

872,386

Caterpillar Financial Services (wheel loader) annual installments of $34,830 to $38,053 through 2025; interest at 3.025% - paid from the Street Improvements Sales Tax fund

114,250 $

Total Financed Purchase Obligations

207,177

1,193,813

The net book value of assets acquired under the financed purchases described above amounted to $2,481,725 as of June 30, 2023. The future minimum obligations and the net present value of these minimum payments as of June 30, 2023 were as follows: Year ending June 30: 2024 2025 2026 2027 2028

Less imputed interest Present value of minimum lease payments

301,333 301,333 301,333 187,670 187,670 1,279,339 (85,526) 1,193,813

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Lease Arrangements Leases Payable Under GASB Statement No. 87, a lessee is required to recognize an intangible right to use asset and a lease liability at the commencement of the lease term based on the estimated present value of the lease payments. The right to use assets represent the City’s right to use the underlying assets during the term of the lease, and lease liabilities represent the City’s obligation to make lease payments arising from the lease. For fund statements an expenditure and other financing source are reported in the period the lease is initially recognized. The subsequent lease payments are accounted for consistent with the principles of debt service payments on long-term debt. The right to use asset is amortized over the lease term. The City uses an average interest rate based upon a combination of treasury rates and credit rates to calculate the present value of lease payments when the rate implicit in the lease is not known. For each lease listed below, the right to use asset is included in Note 6 – Capital Assets and the lease liability is included in Note 7 – Long-Term Obligations. On April 19, 2019, the City entered into a 60-month lease as Lessee for the use of a Ricoh Copier for Municipal Court. On July 1, 2021, an initial lease asset and lease liability were recorded in the amount of $3,642. As of June 30, 2023, the value of the lease liability was $1,002. The City is required to make monthly fixed payments of $112. The lease has an interest rate of 0.8450%. As of June 30, 2023, the value of the right to use asset was $3,642 with accumulated amortization of $2,602. On August 29, 2019, the City entered into a 60-month lease as Lessee for the use of a Ricoh Multifunction Copier for the Finance Department. On July 1, 2021, an initial lease asset and lease liability were recorded in the amount of $7,085. As of June 30, 2023, the value of the lease liability was $2,380. The City is required to make quarterly fixed payments of $598. The lease has an interest rate of 0.8450%. As of June 30, 2023, the value of the right to use asset was $7,085 with accumulated amortization of $4,482. On September 20, 2019, the City entered into a 60-month lease as Lessee for the use of a Ricoh Multifunction Copier for the City Manager's Office. On July 1, 2021, an initial lease asset and lease liability were recorded in the amount of $5,683. As of June 30, 2023, the value of the lease liability was $2,111. The City is required to make monthly fixed payments of $152. The lease has an interest rate of 0.8450%. As of June 30, 2023, the value of the right to use asset was $5,683 with accumulated amortization of $3,530. On December 17, 2019, the City entered into a 60-month lease as Lessee for the use of a Ricoh Multifunction Copier for the Sanitary Sewer Maintenance division. On July 1, 2021, an initial lease asset and lease liability were recorded in the amount of $4,445. As of June 30, 2023, the value of the lease liability was $1,724. The City is required to make quarterly fixed payments of $347. The lease has an interest rate of 0.8450%. As of June 30, 2023, the value of the right to use asset was $4,445 with accumulated amortization of $2,569. On December 17, 2019, the City entered into a 60-month lease as Lessee for the use of a Ricoh Multifunction Copier for the Animal Services division. On July 1, 2022, an initial lease asset and lease liability were recorded in the amount of $3,941. As of June 30, 2023, the value of the lease liability was $1,703. The City is required to make monthly fixed payments of $95. The lease has an interest rate of 70

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 0.8450%. As of June 30, 2023, the value of the right to use asset was $3,941 with accumulated amortization of $2,252. On September 8, 2020, the City entered into a 60-month lease as Lessee for the use of a Hewlett Packard Multifunction Copier for the Community Development Department. On July 1, 2021, an initial lease asset and lease liability were recorded in the amount of $4,967. As of June 30, 2023, the value of the lease liability was $2,654. The City is required to make quarterly fixed payments of $299. The lease has an interest rate of 1.0110%. As of June 30, 2023, the value of the right to use asset was $4,967 with accumulated amortization of $2,364. On September 21, 2020, the City entered into a 60-month lease as Lessee for the use of a Hewlett Packard LJ Managed Copier for the Tourism Division. On July 1, 2021, an initial lease asset and lease liability were recorded in the amount of $5,551. As of June 30, 2023, the value of the lease liability was $3,107. The City is required to make quarterly fixed payments of $315. The lease has an interest rate of 1.0110%. As of June 30, 2023, the value of the right to use asset was $5,551 with accumulated amortization of $2,599. On May 26, 2021, the City entered into a 60-month lease as Lessee for the use of a Hewlett Packard LJ Managed Copier for the Health Department. On July 1, 2021, an initial lease asset and lease liability were recorded in the amount of $5,358. As of June 30, 2023, the value of the lease liability was $3,246. The City is required to make quarterly fixed payments of $276. The lease has an interest rate of 1.1770%. As of June 30, 2023, the value of the right to use asset was $5,358 with accumulated amortization of $2,186. On June 2, 2021, the City entered into a 60-month lease as Lessee for the use of a Hewlett Packard LJ Printer for the City Clerk’s Office. On July 1, 2021, an initial lease asset and lease liability were recorded in the amount of $6,183. As of June 30, 2023, the value of the lease liability was $3,750. The City is required to make quarterly fixed payments of $318. The lease has an interest rate of 1.1770%. As of June 30, 2023, the value of the right to use asset was $6,183 with accumulated amortization of $2,514. On June 14, 2021, the City entered into a 60-month lease as Lessee for the use of two Hewlett Packard LF Managed Copiers for the Police Department. On July 1, 2021, an initial lease asset and lease liability were recorded in the amount of $10,437. As of June 30, 2023, the value of the lease liability was $6,329. The City is required to make quarterly fixed payments of $538. The lease has an interest rate of 1.1770%. As of June 30, 2023, the value of the right to use asset was $10,437 with accumulated amortization of $4,215. On October 21, 2021, the City entered into a 60-month lease as Lessee for the use of two Hewlett Packard LJ Managed Copiers for the Municipal Services Department. An initial lease asset and lease liability were recorded in the amount of $7,573. As of June 30, 2023, the value of the lease liability was $5,090. The City is required to make quarterly fixed payments of $374. The lease has an interest rate of 1.4460%. As of June 30, 2023, the value of the right to use asset was $7,573 with accumulated amortization of $2,566. On March 23, 2022, the City entered into a 60-month lease as Lessee for the use of a six Hewlett Packard LJ Managed Copiers for the Police Department. An initial lease asset and lease liability were recorded in the amount of $31,026. As of June 30, 2023, the value of the lease liability was $21,964. The City is 71

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 required to make quarterly fixed payments of $1,638. The lease has an interest rate of 2.3230%. As of June 30, 2023, the value of the right to use asset was $31,026 with accumulated amortization of $7,894. On December 1, 2022, the City entered into a 36-month lease as Lessee for the use of Quadient Mail Postage Equipment for the City as a whole. An initial lease asset and lease liability were recorded in the amount of $36,223. As of June 30, 2023, the value of the lease liability was $27,353. The City is required to make quarterly fixed payments of $3,169. The lease has an interest rate of 3.3780%. As of June 30, 2023, the value of the right to use asset was $36,223 with accumulated amortization of $7,043. The future minimum lease payment for governmental and business-type activities for the year ended June 30, 2023 is as follows:

Fiscal Year 2024 $ 2025 2026 2027 $

Governmental Activities Principal Interest 33,231 1,526 27,913 839 16,416 255 3,991 32 81,551 2,652

Total 34,757 28,752 16,671 4,023 84,203

Fiscal Year 2024 $ 2025 $

Business-Type Activities Principal Interest 689 5 173 1 862 6

Total 694 174 868

Leases Receivable Under GASB Statement No. 87, a lessor is required to recognize a lease receivable and a deferred inflow of resources at the commencement of the lease term. The lease receivable is measured at the present value of the lease payments expected to be received during the lease term. The deferred inflows of resources are measured at the value of the lease receivable plus any payments received at or before the commencement of the least term that relate to future periods. On July 8, 2002, the City entered into a 480-month lease as Lessor for T-Mobile to use tower and space rental at Fire Station #1. On July 1, 2021, an initial lease receivable and deferred inflow of resources were recorded in the amount of $865,368. As of June 30, 2023, the value of the lease receivable was $808,930. The lessee is required to make annual fixed payments of $41,976. The lease has an interest rate of 2.6590%. As of June 30, 2023, the value of the deferred inflow of resources was $783,028, and the City recognized lease revenue of $41,170 during the fiscal year. On January 1, 2007, the City entered into a 240-month lease as Lessor for the use of Bass Pro Store. On July 1, 2021, an initial lease receivable and deferred inflows of resources were recorded in the amount of $4,806,001. As of June 30, 2023, the value of the lease receivable was $2,937,325. The lessee is required to make annual fixed payments of $1,000,000. The lease has an interest rate of 1.3350%. As of 72

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 June 30, 2023, the value of the deferred inflow of resources was $2,937,325, and the City recognized lease revenue of $984,322 during the fiscal year. On August 27, 2020, the City entered into a 360-month lease as Lessor for the use of land for the Lamar message board at the Cable Dahmer Arena. On July 1, 2021, an initial lease receivable and deferred inflow of resources were recorded in the amount of $562,548. As of June 30, 2023, the value of the lease receivable was $546,331. The lessee is required to make monthly fixed payments of $2,100, and pre-paid 48 months at the commencement of the lease. The lease has an interest rate of 2.7210%. As of June 30, 2023, the value of the deferred inflow of resources was $440,362. On April 1, 2023, the City entered into a 60-month lease as Lessor for the use of land owned by Power and Light. An initial lease receivable and deferred inflow of resources were recorded in the amount of $40,115. As of June 30, 2023, the value of the lease receivable was $31,734. The lessee is required to make annual fixed payments of $8,470. The lease has an interest rate of 2.670%. As of June 30, 2023, the value of the deferred inflow of resources was $30,086 and the City recognized lease revenue of $2,006. The future minimum lease revenue due for governmental and business-type activities under lease arrangement for the year ended June 30, 2023 is as follows:

Fiscal Year 2024 $ 2025 2026 2027 2028 2029 - 2033 2034 - 2038 2039 - 2043 $

Governmental Activities Principal Interest 992,301 49,675 999,675 42,301 1,008,395 33,581 22,144 19,833 29,028 19,244 164,379 84,225 226,695 59,200 303,638 25,141 3,746,255 333,200

Total 1,041,976 1,041,976 1,041,976 41,977 48,272 248,604 285,895 328,779 4,079,455

Fiscal Year 2024 $ 2025 2026 2027 2028 2029 - 2033 2034 - 2038 2039 - 2043 2044 - 2048 2049 - 2051 $

Business-Type Activities Principal Interest 16,676 16,994 17,163 16,507 17,664 16,006 18,177 15,492 10,237 14,963 87,063 62,137 100,649 49,350 115,300 34,700 132,084 17,916 63,052 1,948 578,065 246,013

Total 33,670 33,670 33,670 33,669 25,200 149,200 149,999 150,000 150,000 65,000 824,078

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Subscription-Based Information Technology Arrangements For the year ended June 30, 2023, the financial statements include the adoption of GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITA). The primary objective of this statement is to enhance the relevance and consistency of information about the City’s subscription activities. This statement establishes a single model for subscription accounting based on the principle that subscriptions are financings of the right to use an underlying asset. Under this Statement, an organization is required to recognize a subscription liability and an intangible right-to-use subscription asset. The implementation of this Statement had an impact upon the governmental activities beginning of year net position. At the beginning of the year, the City’s governmental activities were restated for right to use assets by $2,173,246 and SBITA liabilities were restated by $1,434,116. The restatements are summarized as follows: Governmental Activities (Ex. 2) Beginning net position, as originally reported

Subscription assets Subscription liabilities Beginning net position, as restated

Internal Service Funds (Ex. 39)

97,986,221

(4,370,612)

2,173,246 (1,434,146)

2,095,347 (1,356,247)

98,725,321

(3,631,512)

The City uses an average interest rate based upon a combination of treasury rates and credit rates to calculate the present value of lease payments when the rate implicit in the lease is not known. Under GASB Statement No. 96, the City is required to recognize an intangible right to use asset and a subscription liability at the commencement of the lease term based on the estimated present value of the subscription payments. The right to use assets represent the City’s right to use the underlying assets during the term of the subscription agreement, and subscription liabilities represent the City’s obligation to make payments arising from the agreement. For fund statements an expenditure and other financing source are reported in the period the subscription is initially recognized. The subsequent payments are accounted for consistent with the principles of debt service payments on long-term debt. The right to use asset is amortized over the subscription term. For each subscription listed below, the right to use asset is included in Note 6 – Capital Assets and the lease liability is included in Note 7 – Long-Term Obligations. On September 1, 2017, the City entered into a 84-month subscription for the use of Munis ERP System. On July 1, 2022, an initial subscription asset was recorded in the amount of $1,912,213 and a subscription liability was recorded in the amount of $1,173,113. As of June 30, 2023, the value of the subscription liability was $583,374. The City is required to make annual fixed payments of $596,172. The subscription has an interest rate of 2.1937%. As of June 30, 2023, the value of the right to use asset was $1,912,213 with accumulated amortization of $849,873. 74

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 On January 22, 2020, the City entered into an estimated 72-month subscription for the use of eCivis Cost Allocation Software. On July 1, 2022, an initial subscription asset and subscription liability were recorded in the amount of $81,171. As of June 30, 2023, the value of the subscription liability was $54,210. The City is required to make annual fixed payments of $28,000. The subscription has an interest rate of 2.1937%. As of June 30, 2023, the value of the right to use asset was $81,171 with accumulated amortization of $22,653. On January 1, 2022, the City entered into a 36-month subscription for the use of the Enterprise Advantage Program. On July 1, 2022, an initial subscription asset and subscription liability were recorded in the amount of $101,963. As of June 30, 2023, the value of the subscription liability was $50,982. The City is required to make annual fixed payments of $52,100. The subscription has an interest rate of 2.1937%. As of June 30, 2023, the value of the right to use asset was $101,963 with accumulated amortization of $40,785. On January 7, 2022, the City entered into a 36-month subscription for the use of Vector/Target Solutions - Training & Stations Inventory Program. On July 1, 2022, an initial subscription asset and subscription liability were recorded in the amount of $39,678. As of June 30, 2023, the value of the subscription liability was $20,153. The City is required to make annual fixed payments of $20,026. The subscription has an interest rate of 2.3543%. As of June 30, 2023, the value of the right to use asset was $39,678 with accumulated amortization of $15,645. On January 7, 2022, the City entered into a 36-month subscription for the use of Vector/Target Solutions - Fire Scheduling Software. On July 1, 2022, an initial subscription asset and subscription liability were recorded in the amount of $38,221. As of June 30, 2023, the value of the subscription liability was $15,001. The City is required to make annual fixed payments of $8,683. The subscription has an interest rate of 2.1937%. As of June 30, 2023 the value of the right to use asset was $38,221 with accumulated amortization of $15,071. On August 1, 2022, the City entered into a 36-month subscription for the use of CityWorks. An initial subscription asset and subscription liability were recorded in the amount of $467,562. As of June 30, 2023, the value of the subscription liability was $312,687. The City is required to make annual fixed payments of $154,875. The subscription has an interest rate of 2.3543%. As of June 30, 2023, the value of the right to use asset was $467,562 with accumulated amortization of $142,866. On November 1, 2022, the City entered into an estimated 36-month subscription with Reach Media Network for the Sermon Center. An initial subscription asset and subscription liability were recorded in the amount of $2,058. As of June 30, 2023, the value of the subscription liability was $1,350. The City is required to make annual fixed payments of $708. The subscription has an interest rate of 3.2540%. As of June 30, 2023, the value of the right to use asset was $2,058 with accumulated amortization of $457. On December 1, 2022, the City entered into an estimated 36-month subscription with Reach Media Network for the Palmer Senior Center, Truman Memorial Building, and Sermon Center. An initial subscription asset and subscription liability were recorded in the amount of $6,173. As of June 30, 2023, the value of the subscription liability was $4,049. The City is required to make annual fixed payments of $2,124. The subscription has an interest rate of 3.2540%. As of June 30, 2023, the value of the right to use asset was $6,173 with accumulated amortization of $1,200.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 On January 10, 2023, the City entered into an estimated 48-month subscription for the use of Monarch Support for Power and Light. An initial subscription asset and subscription liability were recorded in the amount of $335,860. As of June 30, 2023, the value of the subscription liability was $248,130. The City is required to make annual fixed payments of $87,729. The subscription has an interest rate of 3.0043%. As of June 30, 2023, the value of the right to use asset was $335,860 with accumulated amortization of $39,883. On January 10, 2023, the City entered into an estimated 48-month subscription for the use of Patch Management for Power and Light. An initial subscription asset and subscription liability were recorded in the amount of $156,312. As of June 30, 2023, the value of the subscription liability was $115,483. The City is required to make annual fixed payments of $40,830. The subscription has an interest rate of 3.0043%. As of June 30, 2023, the value of the right to use asset was $156,313 with accumulated amortization of $18,562. On May 1, 2023, the City entered into a 36-month subscription for the use of Ceridian Dayforce Payroll. An initial subscription asset was recorded in the amount of $651,786 and a subscription liability was recorded in the amount of $365,868. As of June 30, 2023, the value of the subscription liability was $345,533. The City is required to make monthly fixed payments of $11,973. The subscription has an interest rate of 2.5033%. As of June 30, 2023, the value of the right to use asset was $651,786 with accumulated amortization of $36,210. The future minimum subscription payments due for governmental and business-type activities under subscription arrangement for the year ended June 30, 2023 is as follows:

Fiscal Year 2024 $ 2025 2026 $

Governmental Activities Principal Interest 970,304 30,735 312,854 8,741 104,181 1,199 1,387,339 40,675

Total 1,001,039 321,595 105,380 1,428,014

Fiscal Year 2024 $ 2025 2026 $

Business-Type Activities Principal Interest 117,635 10,924 121,169 7,390 124,809 3,750 363,613 22,064

Total 128,559 128,559 128,559 385,677

(4) Blended Component Unit (a) Tax Increment Financing Loans and Developer Obligations The City’s tax increment financing loan (TIF loans) indebtedness is recorded as a liability of the TIF Commission to match revenue streams to the related debt for which they have been pledged. The obligation of the City and the Commission to pay principal and interest on these bonds is limited solely to 76

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 the tax increment financing (TIF) revenues generated from each project, and in certain instances an annual appropriation pledge from the City. The City and other taxing districts and governmental entities have pledged a portion of future property tax and sales tax revenues to repay principal and interest of $157.1 million in tax increment financing loans (TIF Loans) issued at various dates beginning in 1999 to finance redevelopment projects within each of the respective TIF plans. The loans are payable solely from the incremental increase in property taxes and sales taxes generated within the TIF plans. TIF revenues were projected to produce sufficient funds to meet debt service requirements over the life of the TIF loans. Should TIF revenues not be sufficient to meet the required debt service obligations, neither the City nor the Commission is obligated to make such loan payments from any other sources of its revenues. However, the City intends to annually appropriate funds sufficient to make all payments required by the bonds for the next fiscal year. During this fiscal year, the City did not use any of the City’s general, sales tax, or proprietary funds to make up deficiencies in loan payments, and management anticipates the same for the next fiscal year. Developer obligations represent developer project costs that have been certified by the City as eligible for reimbursement from tax increment financing revenues attributable to each respective project. Under tax increment financing plans, the developer may be reimbursed up to the certified cost amount from incremental taxes during a period not to exceed 23 years. TIF revenues were projected to produce sufficient funds to reimburse the developer for certified costs. The developer obligations are limited solely to the amount of incremental taxes received attributable to each respective project; any deficiencies are the sole responsibility of the developer and do not constitute an obligation of the Commission or of the City. For the fiscal year ended June 30, 2019, the City re-evaluated GASB Statement No. 48, Sales and Pledges for Receivables and Future Revenues and Intra-Entity Transfer of Assets and Future Revenues, and determined it was appropriate to remove the reported liability for long-term TIF developer obligations. Although not recorded as a liability, the outstanding TIF developer obligations at June 30, 2023 were: TIF Project North Independence Falls at Crackerneck - Bass Pro Old Landfill - Stone Canyon Cinema East - Blue Ridge Trinity 23rd & Noland - Project 2 Little Blue Parkway 1 Little Blue Parkway 3 Marketplace Shopping Center 1 Marketplace Shopping Center 2

Obligations 1,650,473 5,350,000 7,198,625 3,237,066 2,180,907 208,400 758,097 1,318,423 764,403 3,649,517 26,315,911

At June 30, 2023, total principal and interest remaining on the TIF loans was $157.1 million and the outstanding developer obligations were $26.3 million. The TIF loans are scheduled to mature at varying amounts through 2051 and the developer obligations are payable to the extent incremental taxes are available for a period not to exceed 23 years. For the current year, principal and interest paid on TIF loans and developer obligations totaled $10.2 million, excluding refunding transactions. Incremental revenues from the City included $5.4 million in sales taxes and $856,457 in property taxes. The remaining funds necessary to meet the current year debt 77

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 service requirements were derived from incremental tax revenues and other sources from other taxing districts and governmental entities, City and developer contributions, cash reserves, and debt trust funds.

Missouri Development Finance Board Loans Payable $12,050,000 Series 2012 D (HCA - Centerpoint TIF) annual installments of $575,000 to $1,865,000 through 2027; interest at 3.00% to 4.00%

4,550,000

$2,030,000 Series 2014 B (HCA - Centerpoint TIF) annual installments of $105,000 to $495,000 through 2027; interest at 2.000% to 4.000%

955,000

$5,225,000 Series 2015 A (Santa Fe TIF) annual installments of $100,000 to $285,000 through 2044; interest at 3.000% to 4.000%

4,290,000

$3,545,000 Series 2015 B (Santa Fe TIF) annual installments of $55,000 to $215,000 through 2044; interest at 3.000% to 5.250%

2,995,000

$47,060,000 Series 2015 C (Crackerneck Creek TIF) annual installments of $1,200,000 to $5,670,000 through 2045; interest at 3.000% to 5.000%

47,060,000

$2,390,000 Series 2015 D (Crackerneck Creek TIF) annual installments of $1,180,000 to $1,210,000 through 2024; interest at 2.750% to 3.000%

1,210,000

$17,275,000 Series 2016 B (HCA - Centerpoint TIF) annual installments of $970,000 to $2,865,000 through 2028; interest at 3.000% to 5.000%

9,315,000

$35,920,000 Series 2021 (Crackerneck Creek TIF) annual installments of $75,000 to $5,485,000 through 2051; interest at 3.000% to 5.000%

33,105,000

Total TIF Loans Payable

103,480,000

Restricted assets held in trust accounts of $10,360,270 consist of funds available for costs related to the redevelopment of the Santa Fe, Crackerneck Creek and HCA areas.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (1) Tax Increment Financing Prior Year Defeasance of Debt In prior years, the City defeased certain loans payable with the Missouri Development Finance Board by placing the proceeds of refunding TIF loans in an irrevocable trust to provide for all future debt service payments on the old loans. Accordingly, the trust account assets and the liability for the defeased loans are not included in the City’s financial statements. At June 30, 2023, there are no outstanding loans payable balances of previously defeased debt. (b) Bass Pro Lease On October 18, 2004, the City approved the Crackerneck Creek Tax Increment Financing (TIF) Plan. The Crackerneck Creek TIF Plan provides for the development and construction of a proposed 450,000 square foot commercial retail center. The Crackerneck Creek Project (the Project) is scheduled to include (i) the Bass Pro Store described below, (ii) a minimum of 300,000 square feet of additional retail space and (iii) a hotel. In January 2010, a 55,000 square foot Hobby Lobby opened and in late 2009 a 23,000 square foot Mardel opened. During early 2011, an 8,000 square foot Cheddar’s Restaurant opened. In March 2015, Stoney Creek Hotel & Conference Center opened with 167 guest rooms and 30,000 square feet of conference space. The City and the developer remain in discussions regarding securing additional retail development for the project. However, no additional agreements exist requiring any retailers to open for business in the Crackerneck Creek Redevelopment Area other than Bass Pro. As part of the Project, the City has entered into the Lease Agreement (as amended from time to time, the “Bass Pro Lease”) with Bass Pro Outdoor World L.L.C. (“Bass Pro”). Pursuant to the Bass Pro Lease the City will own a 150,000 square foot Bass Pro retail store (the “Bass Pro Store”) and will lease the Bass Pro Store to Bass Pro under the terms and conditions as contained in the Bass Pro Lease. Under the Bass Pro Lease, the City was obligated to make $25,000,000 available to Bass Pro. This amount was funded from the proceeds of the Series 2006A Bonds. The Bass Pro Store is located on an approximate 20-acre parcel owned by the City. The initial term of the Bass Pro Lease is 20 years. Bass Pro has various renewal options under the lease agreement. During the initial 20-year term, Bass Pro is required to pay the City “Percentage Rent” rent equal to 2% of “Gross Sales” as defined in the Bass Pro Lease except that the “Minimum Percentage Rent” will not be less than of $1,000,000 during each year of the initial term. During any of the nine one-year renewal options, Bass Pro will pay rent equal to $10 per year provided the TIF bond financing provided by the City in a maximum of $35,000,000 has been paid in full, or until the expiration of the third one-year renewal option (whichever occurs first), Bass Pro shall be obligated to pay $1,000,000 per year to the City. During any of the three five-year renewal options, Bass Pro will pay rent equal to 1% of “Gross Sales” as defined in the lease agreement.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Beginning in fiscal year 2022 the Bass Pro Lease was recognized under GASB Statement No. 87 as a lease receivable. The following table of the minimum rental payments is presented as information only – see the Lease Arrangements note for this lease on pages 72 and 73. The summary of the minimum rental payments due for this lease are as follows:

Fiscal Year 2024 2025 2026

Total

Amount 1,000,000 1,000,000 1,000,000 3,000,000

Under the Bass Pro Lease, Bass Pro has the option to purchase the Bass Pro Store at the expiration of the 20-year initial term and at the expiration of any renewal option for a purchase price equal to 90% of the fair market value thereof as determined by an appraisal. Also, under the Lease the City constructed an approximate 15-acre lake and an additional wilderness habitat area of approximately 15 acres. The City park includes a waterfall and presents a unique natural setting. The City also constructed 600 parking spaces adjacent to the Bass Pro Store.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (b)

Business-Type Activities

(1)

Revenue Bonds Revenue bonds payable at June 30, 2023 are comprised of the following individual issues: Power and Light Fund: $47,180,000 Series 2016 D annual installments of $4,505,000 to $6,060,000 through 2046; interest at 3.375% to 4.00%

$72,625,000 Series 2022 A annual installments of $3,210,000 to $6,570,000 through 2037; interest at 4.00% to 5.00%

47,180,000

69,415,000 116,595,000

Total Power and Light Fund Water Fund: $36,240,000 Series 2013 D annual installments of $1,480,000 to $4,260,000 through 2029; interest at 2.00% to 5.00%

16,760,000

Total Water Fund

16,760,000

Sanitary Sewer Fund: $21,170,000 Series 2014 C annual installments of $250,000 to $6,150,000 through 2043; interest at 2.00% to 5.00%

18,635,000

$24,760,000 Series 2021 A annual installments of $1,185,000 to $2,205,000 through 2037; interest at 4.00% to 5.00%

23,575,000

$41,565,000 Series 2021 B annual installments of $2,025,000 to $2,810,000 through 2040; interest at 0.489% to 2.983%

39,540,000

Total Sanitary Sewer Fund

81,750,000

Events Center Fund: $12,005,000 Series 2016 A annual installments of $400,000 to $710,000 through 2038; interest at 3.00%

8,895,000

$9,730,000 Series 2021 annual installments of $235,000 to $1,825,000 through 2035; interest at 3.00% to 4.00%

9,195,000

$67,850,000 Series 2022 annual installments of $2,525,000 to $7,955,000 through 2038; interest at 2.690%

65,325,000

Total Events Center Fund

83,415,000 $

Total Revenue Bonds

298,520,000

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 The Power and Light revenue bond ordinance and the Water revenue bond indenture require that the systems be accounted for in separate enterprise funds. They also require that after sufficient current assets have been set aside to operate the systems, all remaining monies held in the funds be segregated and restricted in separate special reserves and accounts in the following sequences:

Restriction

Account Principal and interest

For the monthly accumulation of monies to meet the maturing revenue bond principaland-interest requirements

Depreciation and emergency (water only)

For the accumulation of $500,000 to finance emergency repairs and system improvements

Surplus account monies are reflected as unrestricted cash. The above required reserves and other reserves are reported in the accompanying statement of net position as restricted assets as follows:

Account Principal and interest Depreciation and emergency Bond reserve and project accounts

Total revenue bond reserves Customer deposits Purchase of Dogwood Plant Southwest Power Pool collateral Total

Enterprise Funds Sanitary Water Sewer

Events Center

4,110,451 — 74,155

— 500,000 2,644,015

— — 6,904,022

170,184 — 11,059,765

4,184,606

3,144,015

6,904,022

11,229,949

3,497,793 61,500 928,162

861,206 — —

664,561 — —

— — —

8,672,061

4,005,221

7,568,583

11,229,949

Power and Light

Various bond ordinances and indentures contain significant limitations and restrictions on annual debt service requirements, maintenance of and flow of monies through various restricted accounts, minimum amounts to be maintained in various sinking funds, and minimum revenue bond coverage. The City is in compliance with all such financial limitations and restrictions.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (2)

Prior Year Defeasance of Debt

In prior years, the City defeased certain revenue bonds with the Missouri Development Finance Board by placing the proceeds in an irrevocable trust to provide for all future debt service payments on the defeased bonds. Accordingly, the trust account assets and liability for the defeased bonds are not included in the City’s financial statements. At June 30, 2023, revenue bond balances outstanding of $36,575,000 are considered defeased. (3) Pledged Revenues The Power and Light and Water Bonds are secured by a pledge of revenues, net of specified operating expenses to repay revenue bonds issued. The pledged revenue information for June 30, 2023 is as follows:

Date Issued

Description

09/2016

Power and Light Leasehold Revenue Bonds

05/2022

Power and Light Revenue Bonds

11/2013

11/2014 10/2021 10/2021

Water Revenue Bonds Refunding

Sewer System Revenue Bonds Sewer System Revenue Bonds Sewer System Revenue Bonds

Purpose of Debt

Revenue Pledged

Electric System Projects

Appropriated Revenues through 2046

Electric System Projects

Appropriated Revenues through 2037

Water System Improvements

Sewer System Improvements Sewer System Improvements Sewer System Improvements

Principal & Interest Remaining

Principal & Interest 2022 - 2023

81,710,207

1,789,994

95,655,101 177,365,308

6,833,240 8,623,234

36,955,519

$ $

19,551,383 19,551,383

2,518,363 2,518,363

16,156,108

29,935,981

1,066,350

31,459,925

2,247,050

48,605,577

2,910,672

110,001,483

6,224,072

Term of Commitment

Appropriated Revenues through 2029

Appropriated Revenues through 2043 Appropriated Revenues through 2036 Appropriated Revenues through 2039

Net Available Revenues 2022 - 2023

16,217,468

(4) Letter of Credit The City maintains a letter of credit for $800,000 with a bank, which serves as collateral for the Power and Light fund to participate in the Southwest Power Pool’s (SPP) Transmission Congestion Rights Markets (TCR). The TCR Market provides financial rights used to hedge against the day-ahead market transmission congestion between two locations. As of June 30, 2023, the City has not utilized the letter of credit.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (5) Events Center Bonds The Events Center Bonds (Bonds) are secured by a pledge of certain community improvement district sales taxes (CID sales taxes) and related Tax Increment Financing (TIF) revenues generated within the Independence Events Center Community Improvement District (District) boundaries. In addition, the Bonds include an annual appropriation covenant pursuant to which the City agrees to budget and appropriate sufficient funds to meet the scheduled debt service requirements of the Bonds should the CID sales taxes and TIF revenues not be sufficient to do so. For the year ended June 30, 2023, District revenues paid to the City for debt service totaled $5,218,175. The remaining debt service amounts of $8,586 were funded from capitalized interest funds that were established at the time the Bonds were issued. (8)

Advances for Construction As new developments are constructed, the Power and Light (Enterprise) Fund requires a nonrefundable cash payment from a customer or developer to be paid toward the cost of extending the distribution system, installation of streetlights, and other additions or modifications solely for the benefit of the customer or developer. The advances for construction at June 30, 2023 were $232,964. As new additions to the water distribution system are constructed, the Water (Enterprise) Fund requires the developer or wholesaler to advance the estimated cost of the water main extension or improvement. Upon project completion, any excess of the advance over the project cost is refunded to the developer or wholesaler or vice versa. The advances for construction at June 30, 2023 were $173,548.

(9)

Employee Retirement System Plan Description The City’s defined benefit pension plan provides certain retirement, disability and death benefits to plan members and beneficiaries. The City participates in the Missouri Local Government Employees Retirement System (LAGERS). LAGERS is an agent multiple-employer, statewide public employee pension plan established in 1967 and administered in accordance with RSMo. 70.600-70.755. As such, it is LAGERS responsibility to administer the law in accordance with the expressed intent of the General Assembly. The plan is qualified under the Internal Revenue Code Section 401(a) and is tax exempt. The responsibility for the operations and administration of LAGERS is vested in the LAGERS Board of Trustees consisting of seven persons. LAGERS issues a publicly available financial report that includes financial statements and required supplementary information. This report may be obtained by accessing the LAGERS website at www.molagers.org. Benefits Provided LAGERS provides retirement, death and disability benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing LAGERS. All benefits vest after 5 years of credited service. Employees who retire on or after age 60 (55 for Police and Fire) with 5 or more years of service are entitled to an allowance for life based upon the benefit program information provided below. Employees may retire with an early retirement benefit with a minimum of 5 years of credited service and after attaining age 55 (50 for Police and Fire) and receive a reduced allowance.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023

Benefit Multiplier Final Average Salary Member Contributions

2023 Valuation 2.00% 3 Years 4.00%

Benefit terms provide for annual post retirement adjustments to each member’s retirement allowance subsequent to the member’s retirement date. The annual adjustment is based on the increase in the Consumer Price Index and is limited to 4.00% per year. Employees Covered by Benefit Terms At June 30, 2023, the following employees were covered by the benefit terms: Retirees and beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits Active employees Total

1,230 276 944 2,450

Contributions Effective November 1, 2009, the City’s LAGERS benefit program changed from LT-8(65) to L-6 with employees contributing 4.00% of gross salaries and wages. The City is required to contribute amounts at least equal to the actuarially determined rate, as established by LAGERS. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance an unfunded accrued liability. Full-time employees of the City contribute 4.00% of their gross pay to the pension plan. The City contribution rates for the year ending June 30, 2023 were 21.30% (General), 22.50% (Police), and 21.10% (Fire) of annual covered payroll. Net Pension Liability The City’s net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of February 28, 2023. Standard update procedures were used to roll forward the total pension liability to June 30, 2023.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Actuarial Assumptions The total pension liability in the February 28, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary Increase Investment rate of return

2.25% price inflation; 2.75% wage inflation 2.75% to 7.15% including wage inflation 7.00%, net of investment expenses

The healthy retiree mortality tables, for post-retirement mortality, were 115% of the PubG-2010 Retiree Mortality Table for males and females. The disabled retiree mortality tables, for post-retirement mortality, were 115% of the PubNS-2010 Disabled Retiree Mortality Table for males and females. The preretirement mortality tables used were 75% of the PubG-2010 Employee Mortality Table for males and females of General groups and 75% of the PubS-2010 Employee Mortality Table for males and females of Police, Fire, and Public Safety groups. Mortality rates for a particular calendar year are determined by applying the MP-2020 mortality improvement scale to the above described tables. The long-term expected rate of return on pension plan investments was determined using a model method in which the best-estimate ranges of expected future real rates of return (expected returns, net of investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class Alpha Equity Fixed Income Real Assets Strategic Assets Cash/Leverage

Target Allocation 15.00% 35.00% 31.00% 36.00% 8.00% -25.00%

Weighted Average Long-Term Expected Real Rate of Return 3.67% 4.78% 1.41% 3.29% 5.25% -0.29%

Discount Rate The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumes that the City and employee contributions will be made at the rates agreed upon for employees and the actuarially determined rates for the City. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to pay all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payment to determine the total pension liability. 86

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Changes in the Net Pension Liability (Asset) The following table shows the components of the changes in the net pension liability (asset) for the year: Total Pension Liability (Asset) (a) $ 588,164,630

Balances at 6/30/2022 Changes for the Year: Service Cost Interest Difference Between Expected and Actual Experience Changes in assumptions Contributions - Employer Contributions - Employee Net Investment Income Benefit Payments, Including Refunds Administrative Expense Other (Net Transfer) Net Changes Balances at 6/30/2023

9,200,438 40,277,631 17,661,816 — — — — (35,179,649) — — 31,960,236 620,124,866

Increase (Decrease) Plan Fiduciary Net Pension Net Position Liability (Asset) (b) (a) - (b) 563,893,533 24,271,097 — — — — 16,448,814 3,118,990 19,845,854 (35,179,649) (358,252) 3,796,388 7,672,145 571,565,678

9,200,438 40,277,631 17,661,816 — (16,448,814) (3,118,990) (19,845,854) — 358,252 (3,796,388) 24,288,091 48,559,188

Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate The following presents the Net Pension Liability of the City, calculated using the discount rate of 7.00%, as well as what the employer’s Net Pension Liability (Asset) would be using a discount rate that is one percentage point lower at 6.00% or one percentage point higher at 8.00% than the current rate.

Net Pension Liability (Asset)

1% Decrease 6.00% 128,908,715

Current Single Discount Rate Assumption 7.00% 48,559,188

1% Increase 8.00% (18,393,458)

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Pension Benefit and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized a pension benefit of $6,620,812. The City reported deferred outflows and inflows of resources related to pensions from the following sources:

Difference between expected & actual plan experience Changes in assumptions Net difference between expected & actual investment earnings Total

Deferred Outflows of Resources 22,898,835 — 7,425,173 30,324,008

Deferred Inflows of Resources (1,561,797) (4,728,310) — (6,290,107)

Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended: 2024 $ 2025 2026 2027 2028 Thereafter $

1,974,498 (2,107,688) 16,555,911 6,675,136 936,044 — 24,033,901

Certain deferred inflows and outflows of resources are being amortized over a closed period equal to the average of the expected service lives of all employees as of the beginning of the measurement periods. The differences on investment returns are being amortized over a closed 5-year period, beginning at the start of each measurement period. (10) Post-Employment Health Benefits In addition to the pension benefits described in Note (9), the City provides post-employment healthcare benefits to all retired employees meeting the service criteria for this benefit. From an accrual accounting perspective, the cost of post-employment healthcare benefits, like the cost of pension benefits, generally should be associated with the periods in which the cost occurs, rather than in a future year when it actually will be paid.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Plan Description The City’s defined benefit OPEB plan, a single–employer health care plan provides OPEB for all active and retired employees and their eligible dependents. The plan is administered by the City and the City Council has the authority to establish or amend the plan provisions or contribution requirements at any time. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. The plan does not issue a stand-alone financial report. Benefits Provided The City provides for a continuation of medical, prescription drug, hearing and vision insurance benefits to retired employees who participate in the Missouri Local Government Employees Retirement System (LAGERS). The benefits for pre-Medicare retirees are self-insured by the City, and administered through Cigna (Open Access Plan 1 and 2, the Local Plus Plan, and the Base Plan). The benefits for Medicare retirees are covered under a fully-insured, stand-alone plan. Contributions Coverage is available for the lifetime of the retiree and their spouses upon payment of required retiree contribution premiums which includes an adjustment when the retiree becomes eligible to participate in the Medicare program. The City establishes rates based upon an actuarially determined rate. Retirees that were hired after July 1, 2018 must contribute 100% of the plan premiums. The premiums for retirees that were hired prior to July 1, 2018 are split between the retiree and the City at percentages that are comparable to active City employees, and may be amended at any time by the City Council. For the year ended June 30, 2023, the premiums were split as follows: Retiree Premium 20% 18% 14% 0% - 13% 11% - 54%

Insurance Plan Open Access Plan 1 Open Access Plan 2 Local Plus Plan Base Plan Medicare Stand-Alone Plan

City Premium 80% 82% 86% 87% -100% 46% - 89%

Participants The number of participants that either are, or potentially could be, covered by the City’s plan, as of January 1, 2023, which is the effective date of the current OPEB actuarial valuation, is listed below. There have been no significant changes in the number of covered participants or the type of coverage since that date. Active Employees (not including dependents) Retirees or surviving spouses (not including dependents) Total Participants

845 863 1,708

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Changes in the Total OPEB Liability The following table shows the components of the changes in the total OPEB liability for the year: OPEB Liability Changes Total OPEB Liability - Beginning of the year Service Cost Interest Cost Changes in Benefit Terms Difference between actual & expected experience Changes in assumptions & inputs Employer Contributions (Benefit Payments) Net Changes Total OPEB Liability - End of the year

Covered payroll

179,981,116 3,493,312 6,984,546 (6,794,555) (2,946,506) 3,792,125 (8,767,000) (4,238,078) 175,743,038 61,966,777

Total OPEB liability as a % of covered payroll

283.61%

The change in assumptions & inputs is the result of the change in the discount rate.

Total OPEB Liability The City’s total OPEB liability of $175,743,038 was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Valuation Date

January 1, 2023, rolled forward to June 30, 2023

Measurement Date

June 30, 2023

Discount Rate

4.00% Measurement Date 3.90% Year Preceding Measurement Date The discount rate was based on the average of the published yields from the S & P Municipal Bond 20 Year High Grade and the Fidelity GO AA-20 Year Indexes

Salary Scale

3.50%

Actuarial Cost Method

Entry Age - Level Percent-of-Pay

Inflation

2.75%

Healthcare Cost Trend Rate Retiree's Share of Benefit Related Costs

7.50% decreasing annually until 4.50% is reached Retirees must contribute a stipulated percentage of the plan premiums to maintain coverage. The monthly contribution rates as of January 1, 2023 served as a starting point for the valuation, and were assumed to increase at the same rate of health care costs in the future. Effective January 1, 2020, the Medicare eligible retirees will be covered under a fully-insured, stand-alone program. Retirees will still be required to contribute a stipulated percentage of the plan premiums to this program.

Mortality Rates

The mortality rates were based on the Society of Actuaries Pub-2010 Public Retirement Plans Headcount - Weighted General and Public Safety Mortality Tables with Scale MP-2021 Full Generational Improvement

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, calculated using the discount rate of 4.00%, as well as what the total OPEB liability would be using a discount rate that is one percentage point lower at 3.00% or one percentage point higher at 5.00% than the current rate.

Total OPEB Liability

Current Single Discount Rate Assumption 4.00% 175,743,038

1% Decrease 3.00% 203,219,110

1% Increase 5.00% 153,707,774

The following presents the total OPEB liability of the City, calculated using the current healthcare cost trend rates as well as what the City’s total OPEB liability would be if it were calculated using a trend rate that is one percentage point lower or one percentage point higher than the current trend rates of 7.50%.

Total OPEB Liability

Current Healthcare Cost Trend Rate 1% Decrease Current Trend Rate 7.50% 6.50% 151,224,958 175,743,038

1% Increase 8.50% 206,866,758

OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense of $2,662,098. At June 30, 2023, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

Difference between expected and actual experience Changes in assumptions Total

$ $

Deferred Outflows of Resources 4,969,677 16,497,637 21,467,314

Deferred Inflows of Resources (6,493,355) (29,799,854) (36,293,209)

Amounts currently reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense over the average remaining service lives of plan participants (actives and retirees) as follows: Fiscal Year Ending 2024 2025 2026 2027

Amount (1,490,045) (5,185,099) (8,319,874) 169,123 (14,825,895)

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (11) 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; injuries to employees; and natural disasters. As a result, there are a number of claims and/or lawsuits to which the City is a party as a result of certain law enforcement activities, injuries, and various other matters and complaints arising in the ordinary course of City activities. The City is entitled to the defense of sovereign and official immunity against tort action that provides immunity except in two areas – motor vehicles and dangerous conditions of property of governmental entities. The City carries commercial property, boiler and machinery, liability, and flood insurance, and settlements of covered claims have not exceeded insurance limits for each of the past three fiscal years. The City also carries automobile physical damage with varying deductibles as well as large contactors equipment. Up until March 31, 2019, the City was a member of the Missouri Public Entity Risk Management Fund (MOPERM), which is a risk pool that provides liability protection to participating Missouri public entities, their officials, and employees. Coverage lines included law enforcement liability, general liability, public official errors and omissions liability, and automobile liability. The City joined MOPERM in 1987. This liability insurance program transfers the risk of liability claims up to the State’s Sovereign Immunity Statute coverage limits. MOPERM has the authority to assess members for any deficiencies of revenues under expenses for any single plan year, and MOPERM had no deficiencies in any of the past three fiscal years. Beginning April 1, 2019, the City left MOPERM and joined the States Risk Retention Group, which is a member-owned company providing excess liability insurance to cities, counties, school districts, and other public entities across the country. States is a Risk Retention program whereby the City assumed the first $250,000 of each liability occurrence for the 2022-23 policy year. The liability limits are $10,000,000 each occurrence/policy aggregate. The City is self-insured for workers' compensation and purchased excess coverage for workers' compensation claims in excess of $1,500,000 per accident for the 2022-23 policy year. In order to maintain this self-insured status for workers compensation, the State of Missouri requires the City to maintain a surety bond in the amount of $2,320,000 and an escrow account in the amount of $200,000. The escrow account of $200,000 is reflected as restricted assets in the Workers' Compensation Fund. Estimated workers' compensation claims incurred but not reported are accrued as liabilities in the City's Workers' Compensation Fund. The City offers its employees and retirees contributory self-insurance healthcare plans (Staywell Open Access Plan 1, Staywell Open Access Plan 2, Staywell Local Plus Plan, Staywell Base Plan, and the Post65 Retiree Medicare Plan). An excess coverage insurance policy covers the portion of specific claims in excess of $275,000 and aggregate claims in excess of $24,401,185 for the open access plan and for the innetwork plan. The City’s share of the premiums for this employee and retiree benefit was $18,452,922. For the Staywell Health Care Plan, the premiums paid by the City are recorded as expenditures/expenses of the various funds and premium revenue in the Staywell Health Care (Internal Service) Fund. Incurred but not reported medical, vision, and prescription claims are accrued as a liability in the Internal Service Fund. For the Post-65 Retiree Medicare Plan, the premiums paid by the City are recorded as expenditures/expenses of the various funds and remitted to Cigna.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Changes in the balances of the workers’ compensation and health care claims liability during the last two years are as follows: Claims Payable Workers' Compensation 2022 2023 Beginning of year

Staywell 2022

2023

8,818,673

8,110,693

1,645,670

1,464,200

Current year claims and changes in estimates

1,310,440

3,845,613

21,279,112

20,472,697

Claims payments

(2,018,420)

(3,068,811)

(21,460,582)

(20,232,697)

8,110,693

8,887,495

1,464,200

1,704,200

End of year

(12) Commitments and Contingencies Construction Commitments At June 30, 2023, the City had commitments of approximately $25.7 million to complete construction contracts. Of this amount, $16.4 million relates to the enterprise funds. The commitments for the governmental funds will be funded through sales tax and grant funding. The commitments for the enterprise funds will be funded through operating revenues and/or bond proceeds. Purchase/Sales of Capacity and Energy The City purchases a portion of its power supply needs under seven long-term purchase agreements: a participation power agreement with Omaha Public Power District (OPPD), a participation power agreement with Missouri Joint Municipal Electric Utility Commission (MJMEUC), a renewable energy purchase agreement with Smoky Hills Wind Project II, LLC (Smoky Hills), a renewable energy purchase agreement with Marshall Wind Energy LLC (Marshall Wind), two renewable energy purchase agreements with MCP-Independence LLC (MCP), and a capacity agreement with Oneta Power, LLC. In January 2004, the City entered into a participation power agreement with OPPD. Under this agreement, the City purchases an 8.33% share (approximately 57 megawatts) of a 682 megawatt coal-fired baseload generating unit at OPPD’s existing Nebraska City power station site (Nebraska City Unit 2). The agreement provides that OPPD is the owner/operator of the unit and OPPD sells the City’s share of the output on a cost-based approach. OPPD issued tax-exempt bonds to pay for the construction of the unit and the City is obligated to pay its proportionate share of the debt service on the bonds, the fixed operation and maintenance costs, the variable operating costs including fuel and renewals and replacements of the unit. The unit began commercial operation on May 1, 2009. The term of the agreement is 40 years from the commercial operation date and can be extended by the City for the life of the proposed unit. The future minimum payments (City’s portion of the debt service) are approximately $116,650,000 through the year 2049. During fiscal year 2023, the delivered cost of capacity and energy under the agreement, including all demand, energy, and debt service was approximately $15,600,000 for 288,914 megawatt-hours of wholesale energy. For fiscal year 2024, the projected costs under the agreement are estimated to be approximately $18,000,000.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 In June 2006, the City entered into a unit power purchase agreement with MJMEUC. Under this agreement, the City purchases a 50% share (approximately 53 megawatts) of MJMEUC’s 106 MW ownership share of the nominal 875 megawatt Iatan 2 coal-fired generating unit located at Kansas City Power & Light Company’s (KCPL) existing power station site in Weston, Missouri. The agreement provides that MJMEUC sells the City’s share of the output on a cost-based approach. MJMEUC issued tax-exempt bonds to pay for its share of the construction of the unit and the City is obligated to pay its share of the debt service on the bonds, the fixed operation and maintenance costs, the variable operating costs including fuel, renewals and replacements of the unit and related administrative costs incurred by MJMEUC. The unit began commercial operations on December 31, 2010. The term of the agreement is 40 years from the commercial operation date and can be extended by the City for the life of the proposed unit. The future minimum payments (City’s portion of the debt service) are approximately $120,600,000 through the year 2039. During fiscal year 2023, the delivered cost of capacity and energy under the agreement, including all demand, energy, and debt service was approximately $16,800,000 for 216,891 megawatt-hours of wholesale energy. For fiscal year 2024, the projected costs under the agreement are estimated to be approximately $19,000,000. In August 2008, the City entered into a renewable energy purchase agreement with Smoky Hills. Under this agreement, the City purchases a 10.10% share (15 megawatts) of a 148.5 megawatt wind farm generation project located in north-central Kansas. The agreement provides that the City will purchase its share of the energy output of the Smoky Hills project and will pay a flat fixed rate (in dollars per megawatt-hour) for the entire term of the agreement. Energy deliveries from the wind farm began on December 8, 2008 and will continue for a term of 20 years with certain renewal options at the mutual agreement of the parties. During fiscal year 2023, the cost of the energy purchases was approximately $1,600,000 for 49,158 megawatt-hours of wholesale energy. For the fiscal year 2024, the projected costs under the agreement are estimated to be approximately $2,400,000. In May 2015, the City entered into a renewable energy purchase agreement with Marshall Wind Energy LLC. Under this agreement, the City purchases a 27.78% share (20 megawatts) of a 72 megawatt wind farm generation project located in north central Kansas. The agreement provides that the City will purchase its share of the energy output of the Marshall Wind project and will pay a flat fixed rate (in dollars per megawatt-hour) for the entire term of the agreement. Energy deliveries from the wind farm began on March 22, 2016 and will continue for a term of 20 years with certain renewal options at the mutual agreement of the parties. During fiscal year 2023, the cost of the energy purchases was approximately $2,900,000 for 86,203 megawatt-hours of wholesale energy. For fiscal year 2024, the projected costs under the agreement are estimated to be approximately $2,600,000. In November 2015, the City entered into a renewable energy purchase agreement with MCP-Independence LLC. Under this agreement, the City purchases power generated from a 3 megawatt AC photovoltaic solar farm located in Independence, Missouri. In July 2017, the City entered into a second renewable energy purchase agreement with MCP-Independence, LLC to expand the solar farm by 8.5 megawatts. Both agreements provides that the City will purchase all energy output of the projects and will pay a flat fixed rate (in dollars per kilowatt-hour) for the entire 25-year term of the agreements. Energy deliveries from the solar farm began on March 15, 2017 and deliveries for the expansion began on June 14, 2018. During fiscal year 2023, the cost of the energy purchased was $1,600,000 for 21,061 megawatt-hours of wholesale energy. For the fiscal year 2024, the projected costs under the agreement are estimated to be approximately $1,600,000.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 In May 2019, the City entered into an agreement with Oneta Power LLC, for a Capacity Only Power Purchase Agreement for the purchase of 46 megawatts of capacity only from the Oneta Generating Facility for a 10 year term. Oneta Generating Facility is a 1,133 MW natural gas-fired combined cycle plant located in Coweta, Oklahoma. For Delivery Years 1-5, the City shall have the right to increase the Quantity of the Contract Capacity (up to 70 MW total, the ‘Reserved Capacity’) for any remaining years of the Delivery Term. Beginning in Delivery Year 6, in the event Oneta is interested in pursuing a transaction with a third party for any portion of the Reserved Capacity that is not yet committed to the City, Oneta shall give the City advance notice, and the City has the right, exercisable within a specified number of days following the notice, to add such portion of the Reserved Capacity to the Contract Capacity (in lieu of Oneta transacting with a third party for such portion). Any adjustment of Contract Capacity shall not fall below the level of Contract Capacity for the previous Delivery Year. During fiscal year 2023, the cost of the capacity purchased was approximately $1,300,000. For the fiscal year 2024, the projected costs under the agreement are estimated to be approximately $1,400,000. Dogwood Energy Facility On April 5, 2012, pursuant to an Asset Purchase Agreement with Dogwood Energy, LLC, the City purchased a 12.3% undivided interest (approximately 75 MW) in the Dogwood Energy Facility – a nominal 610 megawatt natural gas-fired combined cycle generating plant located in Pleasant Hill, Missouri. The facility was originally developed as a joint venture between Aquila, Inc. and Calpine Corporation. The facility (originally named Aries) was placed into commercial operation in two phases: first as a peaking facility during the summer of 2001 and then as a combined cycle plant on February 27, 2002. In addition to the City, Kansas Power Pool (KPP), Missouri Joint Municipal Electric Utility Commission (MJMEUC), the Unified Government of Wyandotte County (KCBPU), and the Kansas Municipal Energy Agency (KMEA) also own 10.3%, 16.4%, 17.0% and 10.1% shares respectively of the Dogwood Energy Facility. Dogwood Energy, LLC maintains the remaining ownership share (33.9%) in the facility. Each of the owners has entered into certain project agreements that provide for the joint ownership and operation of the Dogwood Facility. Under the project agreements, each of the owners are responsible for their respective share of the fixed operation and maintenance costs, the variable operating costs including fuel, and renewals and replacements of the facility. In addition, the owners share in any revenues from sales of unused capacity and energy in the facility. The plant had a value of $53,785,771 with $6,049,771 accumulated depreciation, making the net purchase price $47,736,000. An operating reserve account was established in the amount of $430,500 for working capital and $61,500 for SPP credit. Prepaid operating expenses as of June 30, 2023 were $482,501 and depreciation expense for fiscal year end June 30, 2023 was $675,434.

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 Litigation The City is involved in lawsuits arising in the ordinary course of activities, including claims regarding construction contract issues, personal injury and discriminatory personnel practices, property condemnation proceedings, and suits contesting the legality of certain taxes. While other cases may have future financial effect, management, based on advice of counsel, believes that their ultimate outcome will not be material to the basic financial statements. Contingencies The outbreak of COVID-19, which has been declared by the World Health Organization to be a public health emergency of international concern, has spread across the globe and is impacting worldwide economic activity. The COVID-19 outbreak poses the risk that the City or its employees, contractors, residents, local businesses, and other partners may be prevented from conducting business activities for an indefinite period of time, including due to shutdowns that may be requested or mandated by governmental authorities. The City receives significant financial assistance from numerous federal, state, and local governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at June 30, 2023. (13) Deficits The accumulated deficits of $712 in the Community Development Block Grant Fund, $16,155 in the Storm Drainage Fund, $1,355 in the Buildings and Other Improvements Fund, $5,756,319 in the Workers’ Compensation Fund, $963,086 in the Central Garage Fund, $1,817,076 in the Finance and Support Services Fund, $1,678,605 in the Events Center Fund, $1,396 in the 23rd and Noland Road #2 TIF project, will be eliminated by future revenues or transfers. (14) Subsequent Events The City evaluated subsequent events through December 21, 2023, the date the financial statements were available to be issued. Below are the items that occurred subsequent to year end. The City approved a redevelopment agreement for the Hub Drive Project which established a Tax Increment Financing (TIF) district, Community Improvement District (CID), and Transportation Development District (TDD).

CITY OF INDEPENDENCE, MISSOURI Notes to Financial Statements June 30, 2023 (15)

Fund Balance Fund balances at year-end are as follows: General Fund balances: Restricted for: Protested Revenues $ Police Equipment Tourism Independence Square Benefit District Grants License Surcharge Street Sales Tax Parks Sales Tax Storm Water Sales Tax Police Sales Tax Fire Sales Tax Animal Shelter Use Tax Police Use Tax Health Property Tax Parks & Recreation Property Tax Debt Service Fund TIF Debt Service Total fund balances restricted Committed for: Domestic Violence Capital Projects Vandalism Reward Community development Total fund balances committed Assigned for: Cigna Wellness Funds Encumbrances: Maintenance Professional Services Leases Other Services Supplies Capital Outlay/Equipment Total fund balances assigned Unassigned Total fund balance

Governmental Funds TIF Debt Service

Nonmajor

Total

1,344 224,050 — — — — — — — — — — — — — — —

— — — — — — — — — — — — — — — — 24,779,350

— — 2,412,012 8,737 7 1,287,490 23,207,557 3,752,805 12,181,382 3,276,426 9,936,490 322,768 5,092,629 354,465 57,314 109,779 —

1,344 224,050 2,412,012 8,737 7 1,287,490 23,207,557 3,752,805 12,181,382 3,276,426 9,936,490 322,768 5,092,629 354,465 57,314 109,779 24,779,350

225,394

24,779,350

61,999,861

87,004,605

16,059 — 3,000 31,926

— — — —

— 136,154 — —

16,059 136,154 3,000 31,926

50,985

—

136,154

187,139

50,000

—

50,000

98,951 215,424 2,575 55,774 61,181 101,252

— — — — — —

98,951 215,424 2,575 55,774 61,181 101,252

585,157

—

585,157

10,185,654

(1,396)

(18,222)

10,166,036

$ 11,047,190

24,777,954

62,117,793

97,942,937

The outstanding encumbrances are amounts needed to pay any commitments related to purchase orders and contracts that remain unperformed at year-end. Totals above include encumbrances as follows: General Fund of $535,937 with $780 included in restricted fund balance and $535,157 in assigned fund balance, and Non-Major Funds of $4,715,944 included in the restricted and committed fund balances. 97

Required Supplementary Information

Exhibit 10 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule General Fund Year Ended June 30, 2023

Budgeted Amounts Original

Final

Actual Amounts (Budget Basis)

35,797,000 4,410,950 5,810,000 1,955,400 2,354,600 2,156,000 220,000 750,400 53,454,350

35,797,000 4,410,950 5,810,000 2,035,236 2,354,600 2,156,000 220,000 758,134 53,541,920

37,623,557 4,515,592 7,044,054 2,519,197 2,354,600 2,125,274 265,276 676,341 57,123,891

1,826,557 104,642 1,234,054 483,961 — (30,726) 45,276 (81,793) 3,581,971

EXPENDITURES City Council City Clerk City Manager Municipal Court Law Finance Community Development Police Fire Municipal Services - Public Works Parks and Recreation Debt Service Capital Outlay Total expenditures

686,729 266,577 1,101,987 1,687,121 182,663 485,744 5,387,456 34,273,528 23,786,997 4,845,324 1,423,611 165,400 — 74,293,137

896,038 337,897 1,157,647 1,687,121 182,663 486,744 5,308,392 34,352,364 23,661,092 4,853,058 1,450,058 165,400 40,000 74,578,474

719,629 470,435 1,161,608 1,537,832 177,065 482,225 4,956,578 33,846,020 25,349,297 4,216,006 1,416,314 180,739 40,000 74,553,748

176,409 (132,538) (3,961) 149,289 5,598 4,519 351,814 506,344 (1,688,205) 637,052 33,744 (15,339) — 24,726

OTHER FINANCING SOURCES (USES) Transfers in - utility payments in lieu of taxes Transfers out Total other financing sources (uses)

20,848,787 (10,000) 20,838,787

20,848,787 (158,000) 20,690,787

21,760,119 (217,275) 21,542,844

911,332 59,275 970,607

—

(345,767)

4,112,987

4,458,754

REVENUES Taxes Licenses and permits Intergovernmental Charges for services Interfund charges for support services Fines and forfeitures Investment income Other revenue Total revenues

Excess of revenues and other financing sources over (under) expenditures and other financing uses

Unassigned fund balance - beginning Cancellation of prior year encumbrances Investment market value change Change in other fund balance components during the year Unassigned fund balance - ending

See accompanying Independent Auditor's Report and notes to budgetary comparison schedules.

6,281,728 50,143 (79,298) (179,906) 10,185,654

Variance with Final Budget

Exhibit 10.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule General Fund Year Ended June 30, 2023 The Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds does not include encumbrances outstanding at year-end as expenditures because encumbrances are reported as reservations of fund balances in accordance with GAAP for the modified accrual basis of accounting. Adjustments necessary to convert the results of operations under the modified accrual basis to the budget basis are included as reconciling items on the following budget-basis statement: General Fund Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues and other financing sources from the budgetary comparison schedule $ Basis differences – budget to GAAP: Investment Market Value Change Total revenues and other financing sources as reported on the statement of revenues, expenditures and changes in fund balances – governmental funds $ Uses/Outflows of Resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule $ Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget Current year expenditures of encumbrances outstanding at the end of the prior fiscal year Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds (GAAP basis) $

78,884,010 (79,298) 78,804,712

74,553,748 (373,299) 287,148 74,467,597

See accompanying Independent Auditor's Report and notes to budgetary comparison schedules.

CITY OF INDEPENDENCE, MISSOURI Notes to Budgetary Comparison Schedules Year ended June 30, 2023 (1)

Budgets and Budgetary Accounting

The City follows these procedures in establishing the budgetary data reflected in the accompanying financial statements: •

Prior to May 15, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.

•

Public hearings are conducted to obtain taxpayer comments.

•

Prior to June 27, the City Council adopts the budget. If the City Council fails to adopt the budget on or before that date, the budget, as submitted or amended, goes into effect.

•

The City Manager is authorized to transfer budgeted amounts between divisions of a department within any fund; however, any revisions that alter the total appropriations within any fund, or that transfer appropriations between departments, must be approved by the City Council. The 2022-2023 budget was amended during the year for transfers and supplemental appropriations. The budget amendments were approved by the City Council.

•

Expenditures may not exceed appropriations for any department without City Council approval. Unencumbered appropriations lapse at year-end.

•

Formal budgets are used as a control device for most funds; however, there is no requirement to report on the budget unless appropriated. Therefore, the financial statements include a comparison of budget to actual only for the General, Tourism, Community Development Block Grant, Rental Rehabilitation, Street Improvement Sales Tax, Parks Improvements Sales Tax, Storm Water Sales Tax, Police Public Safety Sales Tax, Fire Protection Sales Tax, Grants, American Rescue Plan Act, Animal Services Use Tax, Police Use Tax, Health Property Tax Levy, and Parks and Recreation Property Tax Levy Funds who have appropriated budgets. Annual operating budgets are not prepared for Capital Projects Funds, although budgets on a project basis are prepared.

The City’s policy is to prepare the annual operating budget on a basis which includes encumbrances as an equivalent to expenditures. The budgetary comparison schedules are prepared on this basis. Certain reclassifications between budgeted revenues and transfers have been made to facilitate the comparison with actual operations. See accompanying Independent Auditor’s Report.

100

Exhibit 11 CITY OF INDEPENDENCE, MISSOURI Schedule of Changes in Total OPEB Liability and Related Ratios June 30, 2023

Total OPEB Liability Service cost Interest Changes in benefit terms Differences between expected and actual experience Changes of assumptions or other inputs Benefit payments Net change in total OPEB liability Total OPEB liability - beginning Total OPEB liability - ending

Covered - employee payroll Total OPEB liability as a percentage of covered payroll

2023

2022

2021

2020

3,493,312 6,984,546 (6,794,555) (2,946,506) 3,792,125 (8,767,000) (4,238,078) 179,981,116 175,743,038

5,856,465 4,762,281 (3,357,040) (5,795,760) (49,666,422) (8,152,000) (56,352,476) 236,333,592 179,981,116

5,402,186 5,359,428 — 9,050,839 19,586,986 (7,591,000) 31,808,439 204,525,153 236,333,592

5,117,074 5,675,902 (64,032) (2,415,214) 15,655,275 (7,047,000) 16,922,005 187,603,148 204,525,153

7,279,911 9,525,419 (117,967,934) 8,495,479 2,890,612 (7,979,000) (97,755,513) 285,358,661 187,603,148

6,933,082 9,284,832 — — 2,548,653 (7,268,000) 11,498,567 273,860,094 285,358,661

61,966,777

60,254,051

61,410,210

61,654,203

62,360,911

62,007,715

283.61%

298.70%

384.84%

331.73%

300.83%

460.20%

2019

2018

Notes to schedule: 2017-18 was the City's first year implementing GASB Statement No. 75 for the OPEB Liability. This schedule will become a ten year schedule, as information becomes available, in accordance with GASB Statement No. 75 requirements. Changes in assumptions or other inputs reflect the effects of changes in the discount rate each period. The following are the discount rates used in each period: 2023 - 4.00% 2022 - 3.90% 2021 - 2.00% 2020 - 2.60% 2019 - 3.00% 2018 - 3.30% There are no assets accumulated in a trust to pay related benefits for the City's other-post employment benefits.

See accompanying Independent Auditor's Report.

101

Exhibit 12 CITY OF INDEPENDENCE, MISSOURI LAGERS Schedule of Changes in Net Pension Liability (Asset) and Related Ratios June 30, 2023 2023

2022

2021

2020

2019

2018

2017

2016

2015

9,200,438 40,277,631 — 17,661,816 — (35,179,649) — 31,960,236 588,164,630 620,124,866

8,985,966 38,538,472 — 11,593,985 — (33,604,454) — 25,513,969 562,650,661 588,164,630

8,835,703 39,838,559 — (2,691,753) (12,909,211) (30,623,078) — 2,450,220 560,200,441 562,650,661

8,812,673 38,699,404 — (1,634,804) — (29,744,536) — 16,132,737 544,067,704 560,200,441

8,767,760 37,097,513 — 5,293,296 — (28,449,283) — 22,709,286 521,358,418 544,067,704

8,491,285 35,565,355 — 4,958,458 — (27,600,963) — 21,414,135 499,944,283 521,358,418

8,388,017 34,642,794 — (3,550,230) — (26,039,035) — 13,441,546 486,502,737 499,944,283

8,219,353 31,909,765 — 4,916,999 17,199,406 (23,272,216) — 38,973,307 447,529,430 486,502,737

8,279,026 31,404,337 — (10,375,729) — (21,374,778) — 7,932,856 439,596,574 447,529,430

Plan Fiduciary Net Position Contributions - employer Contributions - employee Pension plan net investment income Benefit payments, including refunds Pension plan administrative expense Other Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending

16,448,814 3,118,990 19,845,854 (35,179,649) (358,252) 3,796,388 7,672,145 563,893,533 571,565,678

15,210,110 2,958,772 428,864 (33,604,454) (254,303) (2,700,703) (17,961,714) 581,855,247 563,893,533

14,363,011 2,963,990 126,631,520 (30,623,078) (232,953) 3,128,373 116,230,863 465,624,384 581,855,247

13,630,050 2,925,479 6,074,595 (29,744,536) (302,539) (1,027,620) (8,444,571) 474,068,955 465,624,384

13,183,650 2,992,581 29,696,791 (28,449,283) (271,793) (302,321) 16,849,625 457,219,330 474,068,955

12,176,570 2,925,232 50,437,763 (27,600,963) (189,560) 1,122,739 38,871,781 418,347,549 457,219,330

11,503,039 2,939,278 46,423,639 (26,039,035) (183,539) (701,221) 33,942,161 384,405,388 418,347,549

10,603,882 2,861,145 (791,625) (23,272,216) (181,225) 981,004 (9,799,035) 394,204,423 384,405,388

9,475,216 2,738,899 7,836,996 (21,374,778) (198,235) (5,341,994) (6,863,896) 401,068,319 394,204,423

Employer net pension liability (asset)

48,559,188

24,271,097

(19,204,586)

94,576,057

69,998,749

64,139,088

81,596,734

102,097,349

53,325,007

92.17%

95.87%

103.41%

83.12%

87.13%

87.70%

83.68%

79.01%

88.08%

75,463,600

73,966,040

71,711,424

72,175,519

72,252,369

72,279,232

69,006,951

69,847,339

67,691,063

64.35%

32.81%

-26.78%

131.04%

96.88%

88.74%

118.24%

146.17%

78.78%

Total Pension Liability Service cost Interest on the total pension liability Benefit changes Difference between expected and actual experience Assumption changes Benefit payments, including refunds Refunds Net change in total pension liability Total pension liability - beginning Total pension liability - ending

Plan fiduciary net position as a percentage of the total pension liability (City) Covered payroll Employer's net pension liability (asset) as a percentage of covered payroll

Notes to schedule: 2014-15 was the City's first year implementing GASB 68 for Net Pension Liability. This schedule will become a ten year schedule, as information becomes available, in accordance with GASB Statement No. 68 requirements. During 2015-16 amounts reported as assumption changes were primarily from changes to the mortality table, as well as salary increases and inflation. During 2020-21 amounts reported as assumption changes were primarily from changes to the mortality tables.

See accompanying Independent Auditor's Report.

102

Exhibit 13 CITY OF INDEPENDENCE, MISSOURI LAGERS Schedule of Contributions Last Ten Fiscal Years

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

Actuarially determined contribution Actual contributions in relation to the actuarially determined contribution Contribution deficiency

20,211,164

18,375,465

17,174,262

16,276,175

16,251,566

15,008,913

13,142,800

13,185,228

12,190,564

11,568,908

16,448,814 3,762,350

15,210,110 3,165,355

14,363,011 2,811,251

13,630,050 2,646,125

13,183,650 3,067,916

12,176,570 2,832,343

11,503,039 1,639,761

10,603,882 2,581,346

9,475,216 2,715,348

8,724,944 2,843,964

Covered payroll Contributions as a percentage of covered payroll

75,463,600 21.80%

73,966,040 20.56%

71,711,424 20.03%

72,175,519 18.88%

72,252,369 18.25%

72,279,232 16.85%

69,006,951 16.67%

69,847,339 15.18%

67,691,063 14.00%

68,032,518 12.82%

Notes to schedule: Valuation Date

Actuarially determined contribution rates were calculated as of February 28, 2023 prior to the end of the fiscal year in which contributions are reported.

Methods and assumptions used to determine contribution rates: Actuarial Cost Method Entry Age Normal and Modified Terminal Funding A level percentage of payroll amortization method is used to amortize the UAAL over a closed period of years. If the UAAL (excluding the UAAL associated with benefit changes) is negative, then this Amortization Method amount is amortized over the greater of (i) the remaining initial amortization period, or (ii) 15 years. Remaining Amortization Period Multiple bases from 6 to 16 years. Asset Valuation Method 5-Year smoothed market; 20% corridor. Inflation 2.75% wage inflation and 2.25% price inflation. Salary Increases 2.75% to 7.15%; including wage inflation. Investment Rate of Return 7.00%, net of investment expenses. Retirement Age Experience-based table of rates that are specific to the type of eligibility condition. The healthy retiree mortality tables, for post-retirement mortality, were 115% of the PubG - 2010 Retiree Mortality Table for males and females. The disabled retiree mortality tables, for post-retirement mortality, used in evaluating allowances to be paid were 115% of the PubNS - 2010 Disabled Retiree Mortaility Table for males and females. The pre-retirement mortality tables used were 75% of the PubG - 2010 Employee Mortaility Table for males and females of General groups and 75% of the PubS - 2010 Employee Mortaility Table for males and females of Police, Fire, and Public Safety groups. Mortality Mortality rates for a particular calendar year are determined by applying the MP - 2020 mortaility improvement scale to the above described tables. Other information: None

See accompanying Independent Auditor's Report.

103

CITY OF INDEPENDENCE, MISSOURI Nonmajor Governmental Funds Special Revenue Funds

Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. Tourism – This fund is used to account for expenditures for tourism that are financed out of the transient guest tax. Truman Heartland Community Foundation – This fund is used to account for receipts and expenditures of various donated funds the City holds at the Truman Heartland Community Foundation. Independence Square Benefit District – This fund is used to account for expenditures to improve the City’s downtown business district that are financed by a special property tax levy on those businesses which are benefited. Community Development Block Grant Fund – This fund is used to account for all projects that are funded by the Federal Community Development Block Grant. Rental Rehabilitation – This fund is used to account for expenditures to improve rental property within the City that are funded by state and federal grants. Street Improvement Sales Tax – This fund is used to account for all street projects that are funded by the three-eighth cent street improvement sales tax. Parks Improvement Sales Tax Fund – This fund accounts for all park projects that are funded by the onefourth cent park improvement sales tax. Storm Water Sales Tax – This fund is used to account for all storm water projects that are funded by the one-fourth cent storm water sales tax. Police Public Safety Sales Tax – This fund is used to account for receipts and expenditures of the City’s sales tax for police protection services. Fire Protection Sales Tax – This fund is used to account for receipts and expenditures of the City’s sales tax for fire protection services. License Surcharge – This fund is used to account for street improvements funded by an excise tax that is based on increased traffic flow relating to new development. Grants Fund – This fund is used to account for expenditures that are funded by grants. American Rescue Plan Act Fund – This fund is used to account for expenditures funded from the American Rescue Plan Act. Animal Services Use Tax – This fund is used to account for receipts and expenditures of the City’s use tax for animal services. Police Use Tax – This fund is used to account for receipts and expenditures of the City’s use tax for police services. Health Property Tax Levy Fund – This fund is used to account for revenues and expenditures for the Health portion of the City’s property tax. Parks and Recreation Property Tax Levy Fund – This fund is used to account for revenues and expenditures for the Parks and Recreation portion of the City’s property tax.

CITY OF INDEPENDENCE, MISSOURI Capital Projects Funds Capital Project Funds are used to account for the acquisition and construction of major capital facilities other than those financed by the proprietary funds or trust funds. Street Improvements Fund – This fund is used to account for major street improvement construction projects. Revenues received by this fund come primarily from a sales tax allocation for capital improvements and from federal and state grants and other contributions. Revolving Public Improvements – This fund, which is legally mandated by City Charter, is used to account for the cost of public works or improvements funded by special assessments. Building and Other Improvements – This fund is used to account for the acquisition, construction, and improvement of nonproprietary buildings and facilities of the City. Storm Drainage – This fund is used to account for the acquisition and construction of the City’s infrastructure to control the run-off surface water. Park Improvements – This fund is used to account for the acquisition and construction of the City’s parkland. Debt Service Fund The debt service fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds.

Exhibit 14 CITY OF INDEPENDENCE, MISSOURI Combining Governmental Balance Sheet Nonmajor Governmental Funds June 30, 2023

ASSETS Pooled cash and investments Receivables: Taxes Accounts, net Special assessment principal Accrued interest Due from other funds Due from other governments Restricted cash and investments Total assets LIABILITIES Accounts and contracts payable Due to other funds Accrued items Other current liabilities Unearned revenue Total liabilities

Special Revenue (Exhibit 16)

Capital Projects (Exhibit 34)

Debt Service Fund

Total Nonmajor Governmental Funds

50,564,339

213,280

15,574

50,793,193

9,800,623 118,731 — 83,099 16,155 2,542,368 11,473,170 74,598,485

— 3,125 363,353 255 — 9,513 — 589,526

— — 10,157 205 — — 94,000 119,936

9,800,623 121,856 373,510 83,559 16,155 2,551,881 11,567,170 75,307,947

1,735,826 852,168 712,345 42,458 6,360,285 9,703,082

8,545 98,144 — 840 — 107,529

— — — — — —

1,744,371 950,312 712,345 43,298 6,360,285 9,810,611

— 3,006,033 3,006,033

363,353 — 363,353

10,157 — 10,157

373,510 3,006,033 3,379,543

12,709,115

470,882

10,157

13,190,154

61,890,082 — (712) 61,889,370

— 136,154 (17,510) 118,644

109,779 — — 109,779

61,999,861 136,154 (18,222) 62,117,793

74,598,485

589,526

119,936

75,307,947

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - special assessments Unavailable revenue - real estate taxes Total deferred inflows of resources Total liabilities and deferred inflows of resources FUND BALANCES Restricted Committed Unassigned Total fund balances Total liabilities, deferred inflows of resouces and fund balance

104

Exhibit 15 CITY OF INDEPENDENCE, MISSOURI Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2023

Special Revenue (Exhibit 17)

Capital Projects (Exhibit 35)

Debt Service Fund

Total Nonmajor Governmental Funds

45,380,351 557,061 13,639,452 1,248,307 1,189,434 814,171 62,828,776

— — — 5,617 4,416 3,125 13,158

— — — 12,386 2,796 — 15,182

45,380,351 557,061 13,639,452 1,266,310 1,196,646 817,296 62,857,116

508,677 13,341,388 874,712 9,140,193 2,682,243 2,604,668 2,975,936 56,229 14,002,110

— — 47 14 — — — — 244,634

— — — — — — — 171 —

508,677 13,341,388 874,759 9,140,207 2,682,243 2,604,668 2,975,936 56,400 14,246,744

1,480,344 450,845 48,117,345

— — 244,695

8,000 1,466 9,637

1,488,344 452,311 48,371,677

14,711,431

(231,537)

5,545

14,485,439

OTHER FINANCING SOURCES (USES) Lease proceeds Subscription proceeds Transfers in Transfers out Total other financing sources (uses)

2,827 86,130 2,029,746 (5,954,279) (3,835,576)

— — 240,165 — 240,165

— — — — —

2,827 86,130 2,269,911 (5,954,279) (3,595,411)

Net change in fund balances Fund balances - beginning Fund balances - ending

10,875,855 51,013,515 61,889,370

8,628 110,016 118,644

5,545 104,234 109,779

10,890,028 51,227,765 62,117,793

REVENUES Taxes Licenses and permits Intergovernmental Charges for services Investment income Other revenue Total revenues

105

Exhibit 16 CITY OF INDEPENDENCE, MISSOURI Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2023

LIABILITIES Accounts and contracts payable Due to other funds Accrued items Other current liabilities Unearned revenue Total liabilities

Community Development Block Grant

Rental Rehabilitation

Consolidated Sales Tax Funds ( Exhibit 32)

License Surcharge

Police Use Tax

2,273,707

332,081

27,050

2,546

1,561

35,215,363

1,252,154

—

5,430,937

350,211

5,225,648

371,706

81,375

50,564,339

200,000 1,765 4,256 — — — 2,479,728

— — — — — — 332,081

36,737 — 50 — — — 63,837

— — — — 375,108 — 377,654

— — — — 106,324 — 107,885

6,483,062 5,347 65,162 16,155 708,549 11,473,170 53,966,808

— 32,992 2,344 — — — 1,287,490

— 40,536 — — 1,352,387 — 1,392,923

— — — — — — 5,430,937

— — 656 — — — 350,867

— — 9,784 — — — 5,235,432

985,864 38,016 694 — — — 1,396,280

2,094,960 75 153 — — — 2,176,563

9,800,623 118,731 83,099 16,155 2,542,368 11,473,170 74,598,485

27,101 — 35,303 5,312 — 67,716

— — — — 332,081 332,081

27,100 — — — — 27,100

107,196 261,336 4,710 2,578 2,546 378,366

25,647 75,558 (532) 5,644 1,561 107,878

1,329,214 — 267,138 15,796 — 1,612,148

— — — — — —

160,912 515,274 138,789 — 577,948 1,392,923

14,537 — 8,267 — 5,408,133 5,430,937

— — 28,099 — — 28,099

21,013 — 121,790 — — 142,803

3,249 — 47,438 141 38,016 88,844

19,857 — 61,343 12,987 — 94,187

1,735,826 852,168 712,345 42,458 6,360,285 9,703,082

— —

28,000 28,000

— —

952,971 952,971

2,025,062 2,025,062

3,006,033 3,006,033

67,716

332,081

55,100

378,366

107,878

1,612,148

—

1,392,923

5,430,937

28,099

142,803

1,041,815

2,119,249

12,709,115

2,412,012 — 2,412,012

— — —

8,737 — 8,737

— (712) (712)

7 — 7

52,354,660 — 52,354,660

1,287,490 — 1,287,490

— — —

322,768 — 322,768

5,092,629 — 5,092,629

354,465 — 354,465

57,314 — 57,314

61,890,082 (712) 61,889,370

2,479,728

332,081

63,837

377,654

107,885

53,966,808

1,287,490

1,392,923

5,430,937

350,867

5,235,432

1,396,280

2,176,563

74,598,485

Total liabilities and deferred inflows of resources FUND BALANCES Restricted Unassigned Total fund balances (deficit)

106

Grants

American Rescue Plan

Animal Shelter Use Tax

Parks and Recreation Property Tax Levy

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - real estate taxes Total deferred inflows of resources

Total liabilities, deferred inflows of resources, and fund balance

Independence Square Benefit District

Health Property Tax Levy

Tourism ASSETS Pooled cash and investments Receivables: Taxes Accounts, net Accrued interest Due from other funds Due from other governments Restricted cash and investments Total assets

Truman Heartland Community Foundation

Total

Exhibit 17 CITY OF INDEPENDENCE, MISSOURI Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended June 30, 2023

Truman Heartland Community Foundation

Independence Square Benefit District

Community Development Block Grant

Rental Rehabilitation

Consolidated Sales Tax Funds (Exhibit 33)

License Surcharge

2,322,046 — — 29,904 39,308 11,963 2,403,221

— — — — — 28,241 28,241

26,384 — — — 1,516 — 27,900

— — 1,181,709 — — — 1,181,709

— — 563,852 — — 13,240 577,092

35,492,346 — 1,476,254 742,711 963,032 698,349 39,372,692

— 100,224 — — 22,515 — 122,739

— — — 1,596,140 — — — — 135,038

— — — — — — — 28,241 —

— — — — — — — 27,527 —

— — — — 851,728 — — — —

— — — — 577,092 — — — —

— 6,552,300 742,815 4,952,072 — 2,604,668 — — 13,825,667

1,221 39 1,732,438

— — 28,241

— — 27,527

228 7 851,963

— — 577,092

670,783

—

373

329,746

— — — — —

670,783 1,741,229 2,412,012

— — —

373 8,364 8,737

Tourism REVENUES Taxes Licenses and permits Intergovernmental Charges for services Investment income (loss) Other revenue Total revenues

EXPENDITURES Administrative Services Public Safety Municipal Services - Public Works Culture and Recreation Community Development Storm Water Health and Animal Services General Government Capital Outlay Debt service: Principal Interest and fiscal agent fees Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Lease proceeds Subscription proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances (deficit) - beginning Fund balances (deficit) - ending

Police Use Tax

Health Property Tax Levy

Parks and Recreation Property Tax Levy

782,000 — — — 12,150 46 794,196

4,100,000 — — — 108,985 15 4,209,000

850,488 456,837 — 139,021 17,317 32,484 1,496,147

1,807,087 — — 103,477 24,611 29,776 1,964,951

45,380,351 557,061 13,639,452 1,248,307 1,189,434 814,171 62,828,776

479,742 223,274 131,897 — 141,900 — 29,141 — —

— — — — — — 679,131 — —

— 4,459,816 — — — — — — —

— — — — — — 1,608,586 — —

— — — 2,453,408 — — — — 41,405

508,677 13,341,388 874,712 9,140,193 2,682,243 2,604,668 2,975,936 56,229 14,002,110

793 34 4,044,934

— — 1,005,954

— — 679,131

— — 4,459,816

1,386 32 1,610,004

2,832 — 2,497,645

1,480,344 450,845 48,117,345

122,278

—

5,600,000

115,065

(250,816)

(113,857)

(532,694)

14,711,431

— 77,899 1,729,746 (19,599) 1,788,046

— — — (4,934) (4,934)

— — — — —

— — — (5,600,000) (5,600,000)

— — — — —

2,827 — 300,000 — 302,827

— 8,231 — — 8,231

2,827 86,130 2,029,746 (5,954,279) (3,835,576)

10,558,599 41,796,061 52,354,660

117,344 1,170,146 1,287,490

— — —

115,065 207,703 322,768

(250,816) 5,343,445 5,092,629

188,970 165,495 354,465

(524,463) 581,777 57,314

10,875,855 51,013,515 61,889,370

American Rescue Plan

Animal Shelter Use Tax

— — 3,811,683 233,194 — 57 4,044,934

— — 6,605,954 — — — 6,605,954

— — — — — — — 461 —

28,935 2,105,998 — 138,573 1,111,523 — 659,078 — —

1,473,884 450,733 30,602,139

— — 461

—

8,770,553

— — — (329,746) (329,746)

— — — — —

— (712) (712)

— 7 7

107

Grants

Total

Exhibit 18 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule Tourism Fund Year Ended June 30, 2023

Budgeted Amounts

REVENUES Transient guest taxes Charges for services Investment income Other revenue Total revenues

EXPENDITURES Tourism Debt Service Total expenditures Excess of revenues and other financing sources over (under) expenditures and other financing uses

Actual Amounts (Budget Basis)

Variance with Final Budget

1,975,000 32,000 25,050 12,050 2,044,100

2,322,046 29,904 58,907 11,963 2,422,820

347,046 (2,096) 33,857 (87) 378,720

2,709,247 — 2,709,247

3,339,449 — 3,339,449

1,687,174 1,260 1,688,434

1,652,275 (1,260) 1,651,015

(665,147)

(1,295,349)

734,386

2,029,735

Original

Final

1,975,000 32,000 25,050 12,050 2,044,100

Fund balance - beginning Cancellation of prior year encumbrances Investment market value change Increase (decrease) in prior year encumbrances Fund balance - ending

108

1,741,229 45,724 (19,599) (89,728) 2,412,012

Exhibit 18.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule Tourism Fund Year Ended June 30, 2023 Tourism Fund Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: Market value adjustment to investments Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget (1) Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

2,422,820 (19,599)

2,403,221

1,688,434 (96,897) 140,901

1,732,438

(1) Encumbrances for supplies and equipment ordered but not received are reported in the year the order is placed for budgetary purposes, but in the year the supplies are received for financial reporting purposes.

109

Exhibit 19 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule Community Development Block Grant Fund Year Ended June 30, 2023

Budgeted Amounts Original REVENUES Grants and other shared revenue Total revenues

EXPENDITURES CDBG administration CDBG expenditures Debt Service Total expenditures

Actual Amounts (Budget Basis)

Variance with Final Budget

800,000 800,000

867,974 867,974

1,181,709 1,181,709

313,735 313,735

160,000 640,000 — 800,000

173,595 325,196 — 498,791

168,753 325,196 235 494,184

4,842 — (235) 4,607

— —

(369,183) (369,183)

(329,746) (329,746)

(39,437) (39,437)

—

357,779

OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other financing uses

Final

Fund balance (deficit) - beginning Cancellation of prior year encumbrances Increase (decrease) in prior year encumbrances Fund balance (deficit) - beginning

110

(712) — (357,779) (712)

Exhibit 19.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule Community Development Block Grant Fund Year Ended June 30, 2023 Community Development Block Grant Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: None Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget (1) Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

1,181,709 —

1,181,709

494,184 (175) 357,954

851,963

111

Exhibit 20 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule Rental Rehabilitation Fund Year Ended June 30, 2023

Budgeted Amounts Original REVENUES Grants and other shared revenue Total revenues

EXPENDITURES HOME administration Multi-family housing Community housing development Total expenditures Excess of revenues and other financing sources over (under) expenditures and other financing uses

Final

Actual Amounts (Budget Basis)

Variance with Final Budget

465,330 465,330

579,003 579,003

577,092 577,092

(1,911) (1,911)

46,533 325,730 93,067 465,330

88,811 381,449 108,743 579,003

83,102 331,375 93,067 507,544

5,709 50,074 15,676 71,459

—

69,548

Fund balance - beginning Increase (decrease) in prior year encumbrances Fund balance - ending

112

7 (69,548) 7

Exhibit 20.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule Rental Rehabilitation Year Ended June 30, 2023 Rental Rehabilitation Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: None Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget (1) Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

577,092 —

577,092

507,544 (181,064) 250,612

577,092

113

Exhibit 21 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule Street Improvements Sales Tax Fund Year Ended June 30, 2023

Budgeted Amounts

REVENUES Sales tax Use tax Grants and other shared revenue Investment income Other revenue Total revenues

EXPENDITURES Street Maintenance Debt Service Capital Outlay Total expenditures

Original

Final

Actual Amounts (Budget Basis)

Variance with Final Budget

9,715,000 268,000 — 77,000 — 10,060,000

9,933,180 511,806 1,422,926 639,404 453,218 12,960,534

218,180 243,806 1,422,926 562,404 453,218 2,900,534

1,265,081 1,744,200 6,556,836 9,566,117

1,265,081 1,744,200 11,616,801 14,626,082

833,695 1,784,575 9,732,281 12,350,551

431,386 (40,375) 1,884,520 2,275,531

— — —

1,729,746 (11,692) 1,718,054

1,729,746 11,692 1,741,438

493,883

(4,566,082)

2,328,037

6,894,119

OTHER FINANCING SOURCES (USES) Operating transfers in Transfers out Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other financing uses

Fund balance - beginning Cancellation of prior year encumbrances Investment market value change Increase (decrease) in prior year encumbrances Fund balance - ending

114

22,505,005 1,719,913 (83,532) (3,261,866) 23,207,557

Exhibit 21.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule Street Improvements Sales Tax Fund Year Ended June 30, 2023 Street Improvements Sales Tax Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: Investment Market Value Change Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget (1) Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

12,960,534 (83,532)

12,877,002

12,350,551 (4,982,694) 6,524,647

13,892,504

115

Exhibit 22 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule Parks Improvements Sales Tax Fund Year Ended June 30, 2023

Budgeted Amounts

REVENUES Sales tax Use tax Grants and other shared revenue Charges for services Investment income Other revenue Total revenues

EXPENDITURES Culture and Recreation Capital Outlay Total expenditures Excess of revenues and other financing sources over (under) expenditures and other financing uses

Actual Amounts (Budget Basis)

Variance with Final Budget

4,858,000 134,000 68,000 474,540 59,180 7,500 5,601,220

4,966,640 255,895 53,328 741,988 80,229 48,339 6,146,419

108,640 121,895 (14,672) 267,448 21,049 40,839 545,199

5,103,261 993,000 6,096,261

5,345,497 1,633,047 6,978,544

4,989,505 542,398 5,531,903

355,992 1,090,649 1,446,641

(474,541)

(1,377,324)

614,516

1,991,840

Original

Final

4,858,000 134,000 88,500 474,540 59,180 7,500 5,621,720

Fund balance - beginning Cancellation of prior year encumbrances Investment market value change Increase (decrease) in prior year encumbrances Fund balance - ending

116

3,218,492 50,338 (25,633) (104,908) 3,752,805

Exhibit 22.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule Park Improvements Sales Tax Fund Year Ended June 30, 2023 Park Improvements Sales Tax Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: Investment Market Value Change Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget (1) Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

6,146,419 (25,633)

6,120,786

5,531,903 (37,723) 92,293

5,586,473

117

Exhibit 23 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule Storm Water Sales Tax Fund Year Ended June 30, 2023

Budgeted Amounts

REVENUES Sales tax Use tax Charges for services Investment income Other revenue Total revenues

EXPENDITURES Storm Water Administration Maintenance Permit completion Debt Service Capital Outlay Total expenditures

Actual Amounts (Budget Basis)

Variance with Final Budget

4,858,000 134,000 — 164,000 16,685 5,172,685

4,966,640 255,895 723 313,689 26,428 5,563,375

108,640 121,895 723 149,689 9,743 390,690

233,009 2,684,530 318,000 — 1,500,000 4,735,539

233,009 2,693,315 318,000 — 4,545,291 7,789,615

228,392 2,068,578 305,200 694 1,224,901 3,827,765

4,617 624,737 12,800 (694) 3,320,390 3,961,850

— —

(7,907) (7,907)

7,907 7,907

428,361

(2,616,930)

1,727,703

4,344,633

Original

Final

4,858,000 134,000 — 164,000 7,900 5,163,900

OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other financing uses

Fund balance - beginning Cancellation of prior year encumbrances Investment market value change Increase (decrease) in prior year encumbrances Fund balance - ending

118

11,154,795 225,110 (97,367) (828,859) 12,181,382

Exhibit 23.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule Storm Water Sales Tax Fund Year Ended June 30, 2023 Storm Water Sales Tax Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: Investment Market Value Change Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget (1) Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

5,563,375 (97,367)

5,466,008

3,827,765 (507,697) 1,111,446

4,431,514

119

Exhibit 24 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule Police Public Safety Sales Tax Fund Year Ended June 30, 2023

Budgeted Amounts

REVENUES Sales tax Use tax Investment income Other revenue Total revenues

EXPENDITURES Public Safety Communications Facilities Equipment Debt Service Total expenditures Excess of revenues and other financing sources over (under) expenditures and other financing uses

Actual Amounts (Budget Basis)

Variance with Final Budget

2,580,000 67,000 35,000 7,600 2,689,600

2,689,686 127,948 68,834 127,311 3,013,779

109,686 60,948 33,834 119,711 324,179

522,200 105,200 1,743,700 — 2,371,100

515,060 112,340 1,743,700 — 2,371,100

449,685 111,876 1,727,123 22,520 2,311,204

65,375 464 16,577 (22,520) 59,896

318,500

702,575

384,075

Original

Final

2,580,000 67,000 35,000 7,600 2,689,600

Fund balance - beginning Cancellation of prior year encumbrances Investment market value change Increase (decrease) in prior year encumbrances Fund balance - ending

120

2,793,424 11,803 (24,521) (206,855) 3,276,426

Exhibit 24.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule Police Public Safety Sales Tax Fund Year Ended June 30, 2023 Police Public Safety Sales Tax Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: Investment Market Value Change Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget (1) Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

3,013,779 (24,521)

2,989,258

2,311,204 (131,270) 326,322

2,506,256

121

Exhibit 25 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule Fire Protection Sales Tax Year Ended June 30, 2023

Budgeted Amounts

REVENUES Sales tax Use tax Investment income Other revenue Total revenues

EXPENDITURES Fire Debt Service Capital Outlay Total expenditures

Actual Amounts (Budget Basis)

Variance with Final Budget

8,770,000 268,000 29,000 6,000 9,073,000

11,272,850 511,806 160,919 43,053 11,988,628

2,502,850 243,806 131,919 37,053 2,915,628

6,821,786 73,300 — 6,895,086

7,670,722 73,300 200,000 7,944,022

5,009,003 116,828 — 5,125,831

2,661,719 (43,528) 200,000 2,818,191

— —

77,899 77,899

2,177,914

1,128,978

6,940,696

5,811,718

Original

Final

8,770,000 268,000 29,000 6,000 9,073,000

OTHER FINANCING SOURCES (USES) Other financing sources - subscriptions Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other financing uses

Fund balance - beginning Cancellation of prior year encumbrances Investment market value change Increase (decrease) in prior year encumbrances Fund balance - ending

122

2,124,345 61,015 (68,990) 879,424 9,936,490

Exhibit 25.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule Fire Protection Sales Tax Fund Year Ended June 30, 2023 Fire Protection Sales Tax Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: Investment Market Value Change Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget (1) Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

11,988,628 (68,990)

11,919,638

5,125,831 (1,102,001) 161,562

4,185,392

123

Exhibit 26 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule Grants Fund Year Ended June 30, 2023

Budgeted Amounts

REVENUES Grants and other shared revenue Charges for services Other revenue Total revenues

EXPENDITURES City Manager Law Community Development Police Fire Health and Animal Services Culture and Recreation Debt Service Total expenditures Excess of revenues and other financing sources over (under) expenditures and other financing uses

Actual Amounts (Budget Basis)

Variance with Final Budget

8,459,452 233,194 335,731 9,028,377

3,811,375 233,194 365 4,044,934

(4,648,077) — (335,366) (4,983,443)

— 27,892 940,000 640,270 — 465,497 — — 2,073,659

10,000 108,713 2,140,010 3,249,622 272,884 2,462,706 152,264 — 8,396,199

30 28,935 1,111,523 1,836,145 209,830 662,946 97,776 827 3,948,012

9,970 79,778 1,028,487 1,413,477 63,054 1,799,760 54,488 (827) 4,448,187

346,644

632,178

96,922

(535,256)

Original

Final

2,311,280 109,023 — 2,420,303

Fund balance - beginning Cancellation of prior year encumbrances Increase (decrease) in prior year encumbrances Fund balance - ending

124

— 4,571 (101,493) —

Exhibit 26.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule Grants Fund Year Ended June 30, 2023

Grants Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: None Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget (1) Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

4,044,934 —

4,044,934

3,948,012 (23,701) 120,623

4,044,934

125

Exhibit 27 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule American Rescue Plan Act Fund Year Ended June 30, 2023

Budgeted Amounts Actual Amounts (Budget Basis)

Variance with Final Budget

9,557,038 9,557,038

6,605,954 6,605,954

(2,951,084) (2,951,084)

5,357,038 5,357,038

1,216,463 1,216,463

4,140,575 4,140,575

(4,200,000) (4,200,000)

(5,600,000) (5,600,000)

1,400,000 1,400,000

—

(210,509)

Original

Final

9,557,038 9,557,038

EXPENDITURES American Rescue Plan Total expenditures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses)

REVENUES Grants and other shared revenue Total revenues

Excess of revenues and other financing sources over (under) expenditures and other financing uses

Fund balance - beginning Cancellation of prior year encumbrances Investment market value change Increase (decrease) in prior year encumbrances Fund balance - ending

126

— — — 210,509 —

Exhibit 27.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule American Rescue Plan Act Fund Year Ended June 30, 2023 American Rescue Plan Act Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: None Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget (1) Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

6,605,954 —

6,605,954

1,216,463 (324,254) 113,745

1,005,954

127

Exhibit 28 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule Animal Services Use Tax Fund Year Ended June 30, 2023

Budgeted Amounts Original REVENUES Use tax Investment income Other revenue Total revenues

EXPENDITURES Animal Services Total expenditures Excess of revenues and other financing sources over (under) expenditures and other financing uses

Final

Actual Amounts (Budget Basis)

Variance with Final Budget

782,000 3,000 — 785,000

782,000 15,170 46 797,216

— 12,170 46 12,216

769,213 769,213

679,131 679,131

90,082 90,082

15,787

118,085

102,298

Fund balance - beginning Cancellation of prior year encumbrances Investment market value change Increase (decrease) in prior year encumbrances Fund balance - ending

128

207,703 — (3,020) — 322,768

Exhibit 28.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule Animal Services Use Tax Fund Year Ended June 30, 2023 Animal Services Use Tax Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: Investment Market Value Change Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

797,216 (3,020)

794,196

679,131 —

679,131

129

Exhibit 29 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule Police Use Tax Fund Year Ended June 30, 2023

Budgeted Amounts

REVENUES Use tax Investment income Other revenue Total revenues

EXPENDITURES Police Total expenditures Excess of revenues and other financing sources over (under) expenditures and other financing uses

Actual Amounts (Budget Basis)

Variance with Final Budget

4,100,000 59,000 — 4,159,000

4,100,000 154,034 15 4,254,049

— 95,034 15 95,049

4,029,166 4,029,166

4,175,616 4,175,616

3,950,157 3,950,157

225,459 225,459

129,834

(16,616)

303,892

320,508

Original

Final

4,100,000 59,000 — 4,159,000

Fund balance - beginning Cancellation of prior year encumbrances Investment market value change Increase (decrease) in prior year encumbrances Fund balance - ending

130

5,343,445 107,560 (45,049) (617,219) 5,092,629

Exhibit 29.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule Police Use Tax Fund Year Ended June 30, 2023 Police Use Tax Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: None Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget (1) Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

4,254,049 (45,049)

4,209,000

3,950,157 (140,086) 649,745

4,459,816

131

Exhibit 30 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule Health Property Tax Levy Fund Year Ended June 30, 2023

Budgeted Amounts

REVENUES Real estate tax Licenses and permits Charges for services Investment income Other revenue Total revenues

EXPENDITURES Health Services Animal Services Debt Service Total expenditures OTHER FINANCING SOURCES (USES) Other financing sources - leases Operating transfers in Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other financing uses

Actual Amounts (Budget Basis)

Variance with Final Budget

881,500 392,238 154,500 3,731 14,000 1,445,969

850,488 428,213 167,645 20,514 32,484 1,499,344

(31,012) 35,975 13,145 16,783 18,484 53,375

733,636 1,045,512 — 1,779,148

636,632 977,582 1,418 1,615,632

97,004 67,930 (1,418) 163,516

— 300,000 300,000

2,827 300,000 302,827

2,827 — 2,827

(33,179)

186,539

219,718

Original

Final

881,500 392,238 154,500 3,731 14,000 1,445,969

Fund balance - beginning Cancellation of prior year encumbrances Investment market value change Increase (decrease) in prior year encumbrances Fund balance - ending

132

165,495 444 (3,197) 5,184 354,465

Exhibit 30.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule Health Property Tax Levy Fund Year Ended June 30, 2023 Health Property Tax Levy Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: Investment Market Value Change Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget (1) Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

1,499,344 (3,197)

1,496,147

1,615,632 (5,707) 79

1,610,004

133

Exhibit 31 CITY OF INDEPENDENCE, MISSOURI Budgetary Comparison Schedule Parks and Recreation Property Tax Levy Fund Year Ended June 30, 2023

Budgeted Amounts

REVENUES Real estate tax Grants and other shared revenue Charges for services Investment income Other revenue Total revenues

EXPENDITURES Culture and Recreation Debt Service Capital Outlay Total expenditures

Actual Amounts (Budget Basis)

Variance with Final Budget

1,876,775 — 120,650 19,165 — 2,016,590

1,807,087 — 103,477 25,313 29,776 1,965,653

(69,688) — (17,173) 6,148 29,776 (50,937)

2,463,180 — 91,000 2,554,180

2,453,438 2,832 75,000 2,531,270

9,742 (2,832) 16,000 22,910

— —

8,231 8,231

(537,590)

(557,386)

(19,796)

Original

Final

1,876,775 — 120,650 19,165 — 2,016,590

Fund balance - beginning Cancellation of prior year encumbrances Investment market value change Increase (decrease) in prior year encumbrances Fund balance - ending

134

581,777 444 (702) 33,181 57,314

Exhibit 31.1 CITY OF INDEPENDENCE, MISSOURI Budgetary Basis Reconciliation Schedule Parks and Recreation Property Tax Levy Fund Year Ended June 30, 2023 Parks and Recreation Property Tax Levy Sources/Inflows of Resources: Actual amounts (budgetary basis) for total revenues from the budgetary comparison schedule Basis differences – budget to GAAP: Investment Market Value Change Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds Uses/Outflows of resources: Actual amounts (budgetary basis) for total expenditures from the budgetary comparison schedule Basis differences – budget to GAAP: Outstanding encumbrances at year-end charged to the current year’s budget (1) Current year expenditures of encumbrances outstanding at the end of the prior fiscal year (1) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances – governmental funds

1,965,653 (702)

1,964,951

2,531,270 (33,625) —

2,497,645

135

Exhibit 32 CITY OF INDEPENDENCE, MISSOURI Combining Balance Sheet Nonmajor Sales Tax Funds June 30, 2023

ASSETS Pooled cash and investments Receivables: Taxes Accounts, net Accrued interest Due from other funds Due from other governments Restricted cash and investments Total assets LIABILITIES Accounts and contracts payable Accrued items Other current liabilities Total liabilities

Street Improvements Sales Tax

Parks Improvements Sales Tax

Storm Water Sales Tax

Police Sales Tax

Fire Sales Tax

Total (Exhibit 16)

10,127,912

2,986,378

11,274,270

2,824,078

8,002,725

35,215,363

1,993,794 — 18,141 — 704,297 11,473,170 24,317,314

996,644 5,337 5,567 — 4,252 — 3,998,178

996,644 10 21,146 16,155 — — 12,308,225

505,600 — 5,325 — — — 3,335,003

1,990,380 — 14,983 — — — 10,008,088

6,483,062 5,347 65,162 16,155 708,549 11,473,170 53,966,808

1,088,301 21,456 — 1,109,757

107,925 121,652 15,796 245,373

67,774 59,069 — 126,843

58,577 — — 58,577

6,637 64,961 — 71,598

1,329,214 267,138 15,796 1,612,148

23,207,557 — 23,207,557

3,752,805 — 3,752,805

12,181,382 — 12,181,382

3,276,426 — 3,276,426

9,936,490 — 9,936,490

52,354,660 — 52,354,660

24,317,314

3,998,178

12,308,225

3,335,003

10,008,088

53,966,808

FUND BALANCES Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balance

136

Exhibit 33 CITY OF INDEPENDENCE, MISSOURI Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Sales Tax Funds For the Year Ended June 30, 2023

Street Improvements Sales Tax

Parks Improvements Sales Tax

Storm Water Sales Tax

Police Sales Tax

Fire Sales Tax

Total (Exhibit 17)

10,444,986 1,422,926 — 555,872 453,218 12,877,002

5,222,535 53,328 741,988 54,596 48,339 6,120,786

5,222,535 — 723 216,322 26,428 5,466,008

2,817,634 — — 44,313 127,311 2,989,258

11,784,656 — — 91,929 43,053 11,919,638

35,492,346 1,476,254 742,711 963,032 698,349 39,372,692

— 742,815 — — 11,365,114

— — 4,952,072 — 634,401

— — — 2,604,668 1,826,152

2,483,736 — — — —

4,068,564 — — — —

6,552,300 742,815 4,952,072 2,604,668 13,825,667

1,345,931 438,644 13,892,504

— — 5,586,473

683 11 4,431,514

19,442 3,078 2,506,256

107,828 9,000 4,185,392

1,473,884 450,733 30,602,139

(1,015,502)

534,313

1,034,494

483,002

7,734,246

8,770,553

OTHER FINANCING SOURCES (USES) Subscription proceeds Transfers in Transfers out Total other financing sources (uses)

— 1,729,746 (11,692) 1,718,054

— — — —

— — (7,907) (7,907)

— — — —

77,899 — — 77,899

77,899 1,729,746 (19,599) 1,788,046

Net change in fund balances Fund balances - beginning Fund balances - ending

702,552 22,505,005 23,207,557

534,313 3,218,492 3,752,805

1,026,587 11,154,795 12,181,382

483,002 2,793,424 3,276,426

7,812,145 2,124,345 9,936,490

10,558,599 41,796,061 52,354,660

REVENUES Taxes Intergovernmental Charges for services Investment income Other revenue Total revenues

EXPENDITURES Public Safety Municipal Services - Public Works Culture and Recreation Storm Water Capital Outlay Debt service: Principal Interest and fiscal agent fees Total expenditures Excess (deficiency) of revenues over expenditures

137

Exhibit 34 CITY OF INDEPENDENCE, MISSOURI Combining Balance Sheet Nonmajor Capital Project Funds June 30, 2023

ASSETS Pooled cash and investments Receivables: Accounts, net Special assessment principal Accrued interest Due from other governments Total assets LIABILITIES Accounts and contracts payable Due to other funds Other current liabilities Total liabilities

Street Improvements

Revolving Public Improvements

Buildings and Other Improvements

82,900

21,576

76,541

— 363,353 155 — 446,408

— — 40 — 21,616

— — — —

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - special assessments Total deferred inflows of resources Total liabilities and deferred inflows of resources FUND BALANCES Committed Unassigned Total fund balances (deficit) Total liabilities, deferred inflows of resources, and fud balance

Park Improvements

Total (Exhibit 14)

—

32,263

213,280

3,125 — — 9,513 89,179

— — — — —

— — 60 — 32,323

3,125 363,353 255 9,513 589,526

— — — —

8,545 81,989 — 90,534

— 16,155 — 16,155

— — 840 840

8,545 98,144 840 107,529

363,353 363,353

— —

363,353 363,353

363,353

—

90,534

16,155

840

470,882

83,055 — 83,055

21,616 — 21,616

— (1,355) (1,355)

— (16,155) (16,155)

31,483 — 31,483

136,154 (17,510) 118,644

446,408

21,616

89,179

—

32,323

589,526

138

Storm Drainage

Exhibit 35 CITY OF INDEPENDENCE, MISSOURI Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Project Funds For the Year Ended June 30, 2023

Street Improvements

Revolving Public Improvements

Buildings and Other Improvements

5,617 3,640 — 9,257

— 412 — 412

— (253) 3,125 2,872

30 — 8,427 8,457

9 — — 9

800

OTHER FINANCING SOURCES Transfers in Total other financing sources Net change in fund balances Fund balances (deficit) - beginning Fund balances (deficit) - ending

REVENUES Charges for services Investment income (loss) Other revenue Total revenues

EXPENDITURES Municipal Services - Public Works Culture and Recreation Capital Outlay Total expenditures Excess (deficiency) of revenues over expenditures

Park Improvements

Total (Exhibit 15)

— — — —

— 617 — 617

5,617 4,416 3,125 13,158

8 — 236,207 236,215

— — — —

— 14 — 14

47 14 244,634 244,695

403

(233,343)

—

603

(231,537)

4,934 4,934

— —

235,231 235,231

— —

240,165 240,165

5,734 77,321 83,055

403 21,213 21,616

1,888 (3,243) (1,355)

— (16,155) (16,155)

603 30,880 31,483

8,628 110,016 118,644

139

Storm Drainage

CITY OF INDEPENDENCE, MISSOURI Combining Balance Sheet by Subfund Component Unit - Tax Increment Financing June 30, 2023

ASSETS Pooled cash and investments Receivables: Taxes Accounts, net Accrued interest Leases Due from other funds Due from other governments Restricted cash and investments Total assets LIABILITIES Accounts and contracts payable Due to other funds Other current liabilities Total liabilities

HCA Centerpoint TIF

—

14,813,434

3,177

4,136,073

—

30,683

1,133,533

29,000

100

29,173 — — — — 6,487 500,909 536,569

— — — — — — — —

41,811 — — — — — — 14,855,245

25,780 — — — — 622 — 29,579

634,065 65,794 7,907 2,937,325 — 164,852 6,426,875 14,372,891

671,497 8,530 — — — 1,317 — 681,344

299,465 — 74 — — 10,762 — 340,984

3,817,994 — 2,126 — — 2,066 3,432,486 8,388,205

118,006 — 64 — — 5,609 — 152,679

— — — — — — — 100

— — — —

14,813,435 — 10,615 14,824,050

3,178 — — 3,178

— 1,718 — 1,718

— 8,531 — 8,531

— — — —

23,963 — 23,963

— — —

25,780 — 25,780

466,753 2,937,325 3,404,078

667,484 — 667,484

283,265 — 283,265

3,812,844 — 3,812,844

106,306 — 106,306

— — —

23,963

—

14,824,050

28,958

3,405,796

676,015

283,265

3,812,844

106,306

—

512,606 — 512,606

— — —

31,195 — 31,195

621 — 621

10,967,095 — 10,967,095

5,329 — 5,329

57,719 — 57,719

4,575,361 — 4,575,361

46,373 — 46,373

100 — 100

536,569

—

14,855,245

29,579

14,372,891

681,344

340,984

8,388,205

152,679

100

Total liabilities and deferred inflows of resources FUND BALANCES Restricted Unassigned Total fund balances (deficit) Total liabilities, deferred inflows of resources, and fund balance

Trinity Development TIF

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - real estate taxes Unavailable revenue - leases Total deferred inflows of resources

Eastland Center TIF

Crackerneck Creek/Bass Pro TIF

Santa Fe TIF

Drumm Farm Golf Course TIF

North Indep Improvements TIF

Hartman Heritage TIF

140

Old Landfill TIF

Cinema East TIF

23rd & Noland Project 1 TIF

Exhibit 36 CITY OF INDEPENDENCE, MISSOURI Combining Balance Sheet by Subfund Component Unit - Tax Increment Financing June 30, 2023

23rd & Noland Project 2 TIF ASSETS Pooled cash and investments Receivables: Taxes Accounts, net Accrued interest Leases Due from other funds Due from other governments Restricted cash and investments Total assets LIABILITIES Accounts and contracts payable Due to other funds Other current liabilities Total liabilities

23rd & Noland Project 4 TIF

Independence Square TIF

Little Blue Parkway 1 TIF

Little Blue Parkway 3 TIF

Marketplace Shopping Ctr TIF

Marketplace Shopping Ctr 2 TIF

TIF Supplemental Appropriations

Reclassifications

Total

637

3,849

—

875,197

—

4,857

25,351

21,861

6,529,903

—

27,607,655

5,234 — 10 — — 1,457 — 7,338

11,721 — 7 — — 3,334 — 18,911

100,020 — 112 — — 61,379 — 161,511

303,792 — 1,639 — — — — 1,180,628

1,055,472 — 100 — — 70,312 — 1,125,884

192,573 — 17 — — 5,334 — 202,781

44,904 — 95 — — 25,017 — 95,367

64,369 — 48 — — 5,602 — 91,880

2,734,380 — 12,242 — 8,737 — — 9,285,262

— — — — (8,737) — — (8,737)

10,150,256 74,324 24,441 2,937,325 — 364,150 10,360,270 51,518,421

3,500 — — 3,500

— — — —

— 74 — 74

— — — —

48,379 132 — 48,511

4,770 — — 4,770

— — — —

— (8,737) — (8,737)

14,873,262 1,718 10,615 14,885,595

5,234 — 5,234

9,421 — 9,421

66,320 — 66,320

206,741 — 206,741

524,339 — 524,339

182,073 — 182,073

37,804 — 37,804

57,369 — 57,369

2,441,851 — 2,441,851

— — —

8,917,547 2,937,325 11,854,872

8,734

9,421

66,394

206,741

572,850

186,843

37,804

57,369

2,441,851

(8,737)

26,740,467

— (1,396) (1,396)

9,490 — 9,490

95,117 — 95,117

973,887 — 973,887

553,034 — 553,034

15,938 — 15,938

57,563 — 57,563

34,511 — 34,511

6,843,411 — 6,843,411

— — —

24,779,350 (1,396) 24,777,954

7,338

18,911

161,511

1,180,628

1,125,884

202,781

95,367

91,880

9,285,262

(8,737)

51,518,421

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - real estate taxes Unavailable revenue - leases Total deferred inflows of resources Total liabilities and deferred inflows of resources FUND BALANCES Restricted Unassigned Total fund balances (deficit) Total liabilities, deferred inflows of resources, and fund balance

23rd & Noland Project 3 TIF

141

CITY OF INDEPENDENCE, MISSOURI Combining Statement of Revenues, Expenditures and Changes in Fund Balances Component Unit - Tax Increment Financing For the Year Ended June 30, 2023

REVENUES Taxes Investment income (loss) Other revenue Total revenues

Santa Fe TIF

Hartman Heritage TIF

Drumm Farm Golf Course TIF

Eastland Center TIF

North Indep Improvements TIF

Crackerneck Creek/Bass Pro TIF

Old Landfill TIF

Trinity Development TIF

HCA Centerpoint TIF

36,280 18,205 121,664 176,149

243,252 — — 243,252

— 4 — 4

4,503,440 557,176 26 5,060,642

70,486 4,466 — 74,952

2,219,143 238,200 984,322 3,441,665

754,180 1,811 — 755,991

491,426 891 — 492,317

4,212,247 132,256 — 4,344,503

249,443 1,398 — 250,841

— 262 — 262

4,308

—

15,199,313

84,442

62,087

760,122

489,214

988,816

257,710

157,524

Cinema East TIF

23rd & Noland Project 1 TIF

EXPENDITURES Tax Increment Financing Debt service: Principal Interest and fiscal agent fees Total expenditures Excess (deficiency) of revenues over expenditures

210,000 320,938 535,246

— — —

— — 4

— — 15,199,313

— — 84,442

2,260,000 3,270,363 5,592,450

— — 760,122

— — 489,214

2,305,000 764,600 4,058,416

— — 257,710

— — 157,524

(359,097)

243,252

—

(10,138,671)

(9,490)

(2,150,785)

(4,131)

3,103

286,087

(6,869)

(157,262)

OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses)

1,313,937 — 1,313,937

2,450,690 — 2,450,690

— — —

677,468 (8,158,460) (7,480,992)

— — —

2,123,000 — 2,123,000

— — —

53,348 (53,348) —

11,473 (11,473) —

— — —

Net change in fund balances Fund balances (deficit) - beginning Fund balances (deficit) - ending

954,840 (442,234) 512,606

2,693,942 (2,693,942) —

— — —

(17,619,663) 17,650,858 31,195

(9,490) 10,111 621

(27,785) 10,994,880 10,967,095

(4,131) 9,460 5,329

3,103 54,616 57,719

286,087 4,289,274 4,575,361

(6,869) 53,242 46,373

(157,262) 157,362 100

142

Exhibit 37 CITY OF INDEPENDENCE, MISSOURI Combining Statement of Revenues, Expenditures and Changes in Fund Balances Component Unit - Tax Increment Financing For the Year Ended June 30, 2023

23rd & Noland Project 2 TIF

23rd & Noland Project 3 TIF

23rd & Noland Project 4 TIF

Independence Square TIF

Little Blue Parkway 1 TIF

Little Blue Parkway 3 TIF

Marketplace Shopping Ctr TIF

Marketplace Shopping Ctr 2 TIF

TIF Supplemental Appropriations

16,767 64 — 16,831

38,975 348 — 39,323

610,548 6,823 — 617,371

301,832 20,799 — 322,631

2,405,989 27,725 — 2,433,714

344,445 4,792 — 349,237

123,819 270 — 124,089

160,193 470 — 160,663

2,151,102 3,860 — 2,154,962

18,933,567 1,019,820 1,106,012 21,059,399

26,269

723

11,151

117,406

271,661

140,710

158,648

158,824

552

18,889,484

— — 26,269

— — 723

— — 11,151

— — 117,406

— — 271,661

— — 140,710

— — 158,648

— — 158,824

— — 552

4,775,000 4,355,901 28,020,385

(9,438)

38,600

606,220

205,225

2,162,053

208,527

(34,559)

1,839

2,154,410

(6,960,986)

OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses)

— — —

— (37,000) (37,000)

— (601,000) (601,000)

— — —

— (1,805,000) (1,805,000)

— (318,000) (318,000)

— — —

7,480,992 (3,126,627) 4,354,365

14,110,908 (14,110,908) —

Net change in fund balances Fund balances (deficit) - beginning Fund balances (deficit) - ending

(9,438) 8,042 (1,396)

1,600 7,890 9,490

5,220 89,897 95,117

205,225 768,662 973,887

357,053 195,981 553,034

(109,473) 125,411 15,938

(34,559) 92,122 57,563

1,839 32,672 34,511

6,508,775 334,636 6,843,411

(6,960,986) 31,738,940 24,777,954

REVENUES Taxes Investment income (loss) Other revenue Total revenues EXPENDITURES Tax Increment Financing Debt service: Principal Interest and fiscal agent fees Total expenditures Excess (deficiency) of revenues over expenditures

143

Total

CITY OF INDEPENDENCE, MISSOURI Internal Service Funds Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other governmental units on a cost-reimbursement basis. Central Garage – This fund is used to account for costs of maintenance of the City’s fleet of vehicles and mobile equipment and related charges to other departments. Staywell Health Care – This fund is used to account for the costs of the City’s self-insured healthcare plan. Workers’ Compensation – This fund is used to account for the costs of the City’s self-insured Worker’s Compensation claims and administration plan. Risk Management – This fund is used to account for the costs of the City’s liability insurance and risk management claims. Finance and Support Services – This fund is used to account for the costs of the City’s Finance, Human Resources, and Technology Services departments.

Exhibit 38 CITY OF INDEPENDENCE, MISSOURI Combining Statement of Net Position Internal Service Funds June 30, 2023

ASSETS Current assets: Pooled cash and investments Receivables: Accounts, net Accrued interest Inventory Total current assets Noncurrent assets: Capital Assets: Nondepreciable Depreciable, net Leased assets, net Subscription assets, net Restricted cash and investments Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Pension related amounts Other post-employment benefits Total deferred outflows of resources Total assets and deferred outflows of resources LIABILITIES Current liabilities: Accounts and contracts payable Due to other funds Accrued items Unearned revenue Compensated absences - current Lease liability Subscription liability Total OPEB liability Self-insurance claims payable Total current liabilities Noncurrent liabilities: Compensated absences-long term Lease liability Subscription liability Total OPEB liability Net pension liability Self-insurance claims payable Total noncurrent liabilities Total liabilities

DEFERRED INFLOWS OF RESOURCES Pension related amounts-deferred inflow OPEB - deferred inflow Total deferred inflows of resources Total liabilities and deferred inflows of resources NET POSITION Net investment in capital assets Restricted for: Workers' Compensation escrow Unrestricted Total net position (deficit) Total liabilities, deferred inflows of resources, and net position

Central Garage

Staywell Health Care

Workers' Compensation

Risk Management

786,895

5,446,326

2,949,999

2,109,837

—

11,293,057

15,349 1,474 103,418 907,136

5,799 — — 5,452,125

— 5,900 — 2,955,899

— 3,951 — 2,113,788

— — — —

21,148 11,325 103,418 11,428,948

93,979 44,093 — — — 138,072 1,045,208

— — — — — — 5,452,125

— — — — 201,306 201,306 3,157,205

— — — — — — 2,113,788

— 3,595,585 31,782 2,122,308 — 5,749,675 5,749,675

93,979 3,639,678 31,782 2,122,308 201,306 6,089,053 17,518,001

129,267 68,222 197,489 1,242,697

— — — 5,452,125

— — — 3,157,205

— — — 2,113,788

821,689 21,459 843,148 6,592,823

950,956 89,681 1,040,637 18,558,638

72,708 — 33,465 15,194 39,934 — — 57,895 — 219,196

— — — — — — — — 1,704,200 1,704,200

25,729 — 300 — — — — — 2,393,684 2,419,713

64,237 — 408 — — — — — — 64,645

232,445 1,966,924 309,900 — 349,069 14,282 932,494 67,024 — 3,872,138

395,119 1,966,924 344,073 15,194 389,003 14,282 932,494 124,919 4,097,884 8,279,892

40,965 — — 1,102,660 281,419 — 1,425,044 1,644,240

— — — — — — — 1,704,200

— — — — — 6,493,811 6,493,811 8,913,524

— — — — — — — 64,645

493,526 15,451 414,292 1,276,532 1,788,846 — 3,988,647 7,860,785

534,491 15,451 414,292 2,379,192 2,070,265 6,493,811 11,907,502 20,187,394

43,760 517,783 561,543 2,205,783

— — — 1,704,200

— — — 8,913,524

— — — 64,645

278,160 270,954 549,114 8,409,899

321,920 788,737 1,110,657 21,298,051

138,072

—

4,373,156

4,511,228

— (1,101,158) (963,086)

— 3,747,925 3,747,925

201,306 (5,957,625) (5,756,319)

— 2,049,143 2,049,143

— (6,190,232) (1,817,076)

201,306 (7,451,947) (2,739,413)

1,242,697

5,452,125

3,157,205

2,113,788

6,592,823

18,558,638

144

Finance and Support Services

Total (Exhibit 5)

Exhibit 39 CITY OF INDEPENDENCE, MISSOURI Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds For the Year Ended June 30, 2023

OPERATING REVENUES Charges for services Miscellaneous operating Total operating revenues

OPERATING EXPENSES Personnel services Other services Supplies Depreciation and amortization Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment income Miscellaneous non-operating Interest and amortization expense Total nonoperating revenues (expenses) Income (loss) before contributions and transfers Transfers in Change in net position Total net position (deficit) - beginning (as restated) Total net position (deficit) - ending

Central Garage

Staywell Health Care

Workers' Compensation

Risk Management

Finance and Support Services

Total (Exhibit 6)

3,063,477 12,040 3,075,517

19,091,610 1,042,181 20,133,791

4,450,900 — 4,450,900

2,943,000 — 2,943,000

10,506,740 — 10,506,740

40,055,727 1,054,221 41,109,948

314,354 860,390 1,021,969 11,696 2,208,409 867,108

317,225 23,110,195 — — 23,427,420 (3,293,629)

8,121 3,893,699 21,290 — 3,923,110 527,790

8,121 2,676,409 — — 2,684,530 258,470

8,195,783 3,318,225 820,128 1,714,227 14,048,363 (3,541,623)

8,843,604 33,858,918 1,863,387 1,725,923 46,291,832 (5,181,884)

8,474 18,584 — 27,058 894,166

199,900 1,812,444 — 2,012,344 (1,281,285)

93,076 6,522 — 99,598 627,388

37,931 — — 37,931 296,401

— 17,113 (20,061) (2,948) (3,544,571)

339,381 1,854,663 (20,061) 2,173,983 (3,007,901)

— 894,166

3,900,000 2,618,715

— 627,388

— 296,401

— (3,544,571)

3,900,000 892,099

(1,857,252) (963,086)

1,129,210 3,747,925

(6,383,707) (5,756,319)

1,752,742 2,049,143

1,727,495 (1,817,076)

(3,631,512) (2,739,413)

145

Exhibit 40 CITY OF INDEPENDENCE, MISSOURI Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2023 Internal Service Funds

Cash Flows from Operations: Receipts from customers Payments to suppliers Payments to employees

Net cash provided by (used in) operating activities Cash Flows from Noncapital Financing Activities: Transfers in (out) Advances from (to) other funds Net cash provided by (used in) noncapital financing activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Interest paid on equipment contracts Net cash used in capital and related financing activities Cash Flows from Investing Activities: Interest on investments Adjustment to market value

Central Garage

Staywell Health Care

Workers' Compensation

Risk Management

Finance and Support Services

Total (Exhibit 7)

3,079,291 (1,860,548) (773,032)

21,990,971 (22,870,195) (317,225)

4,457,422 (2,711,105) (8,121)

2,952,456 (2,782,353) (8,374)

10,523,853 (1,880,247) (4,856,815)

43,003,993 (32,104,448) (5,963,567)

445,711

(1,196,449)

1,738,196

161,729

3,786,791

4,935,978

— —

3,900,000 —

— —

— (995,824)

3,900,000 (995,824)

—

3,900,000

—

(995,824)

2,904,176

— —

(2,770,906) (20,061)

—

(2,790,967)

14,449 (6,785)

199,900 —

116,637 (27,167)

56,073 (18,191)

— —

387,059 (52,143)

Net cash provided by (used in) investing activities

7,664

199,900

89,470

37,882

—

334,916

Net increase (decrease) in cash and cash equivalents

453,375

2,903,451

1,827,666

199,611

—

5,384,103

333,520

2,542,875

1,323,639

1,910,226

—

6,110,260

786,895

5,446,326

3,151,305

2,109,837

—

11,494,363

786,895 —

5,446,326 —

2,949,999 201,306

2,109,837 —

— —

11,293,057 201,306

786,895

5,446,326

3,151,305

2,109,837

—

11,494,363

867,108

(3,293,629)

527,790

258,470

(3,541,623)

(5,181,884)

11,696 18,584

— 1,812,444

— 6,522

— —

1,714,227 17,113

1,725,923 1,854,663

(14,810) 34,225 — (60,685) (27,608) 4,491 (222,774) — (5,217) — 15,194 (174,493)

44,736 — — — — 240,000 — — — — — —

— — 409,949 — 17,386 (253) — 776,802 — — — —

9,456 — — — (105,944) (253) — — — — — —

— — — (747,431) 229,709 284,512 2,960,206 (87,222) 731,451 2,115,619 — 110,230

39,382 34,225 409,949 (808,116) 113,543 528,497 2,737,432 689,580 726,234 2,115,619 15,194 (64,263)

(421,397)

2,097,180

1,210,406

(96,741)

7,328,414

10,117,862

445,711

(1,196,449)

1,738,196

161,729

3,786,791

4,935,978

Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Components of cash and short-term investments at end of fiscal year Unrestricted assets Restricted assets Pooled cash and investments Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization Miscellaneous revenue Change in assets and liabilities: Accounts receivable Inventory Prepaid items Deferred outflows Accounts and contracts payable Accrued liabilities Other post-employment benefits and net pension liability Self-insurance claims payable Compensated absences Lease and subscriptions Unearned revenue Deferred inflows Total adjustments Net cash provided by (used in) operating activities

146

Exhibit 41 CITY OF INDEPENDENCE, MISSOURI Combining Statement of Fiduciary Net Position Custodial funds June 30, 2023

ASSETS Pooled cash and investments Accrued interest receivable Total assets NET POSITION Restricted for: Individuals and organizations Total net position

Flexible Benefit Plan

Susie Paxton Block Trust

182,950 — 182,950

35,193 511 35,704

30,718 58 30,776

248,861 569 249,430

182,950 182,950

35,704 35,704

30,776 30,776

249,430 249,430

147

Senior Travel Program

Total

Exhibit 42 CITY OF INDEPENDENCE, MISSOURI Combining Statement of Fiduciary Net Position Custodial Funds Year Ended June 30, 2023

ADDITIONS Contributions Interest on investments Total additions

DEDUCTIONS Benefits paid to participants Award distribution Total deductions Change in net position Net position - beginning Net position - ending

Flexible Benefit Plan

Susie Block Trust

Senior Travel Progam

304,523 7,813 312,336

— 824 824

34,876 1,091 35,967

339,399 9,728 349,127

311,701 — 311,701

— 1,000 1,000

32,049 — 32,049

343,750 1,000 344,750

635

(176)

3,918

4,377

182,315 182,950

35,880 35,704

26,858 30,776

245,053 249,430

148

Total

Exhibit 43 CITY OF INDEPENDENCE, MISSOURI Schedules of Operating Expenses – Power and Light Fund Years Ended June 30, 2023 and 2022

Operations Production Fuel: Gas Oil Total production fuel Purchased Power: Purchased energy Purchased capacity (net) Border customers Control and dispatching Total purchased power Production (Other): Blue Valley Station: Supervision and engineering Steam Electric Structures and improvements Miscellaneous

Transmission and Distribution: Transmission: Supervision and engineering Overhead expenses Station expenses Underground line expense Structures and improvements Miscellaneous Total transmission

Total

Operations

2022 Maintenance

Total

9,535,978 3,618,379

— —

9,535,978 3,618,379

9,969,843 1,545,043

— —

9,969,843 1,545,043

13,154,357

—

13,154,357

11,514,886

—

11,514,886

24,615,376 23,569,446 68,013 2,650,533

— — — —

24,615,376 23,569,446 68,013 2,650,533

21,035,787 23,010,981 62,928 2,893,147

— — — —

21,035,787 23,010,981 62,928 2,893,147

50,903,368

—

50,903,368

47,002,843

—

47,002,843

10,921 — — — 11,922

— 424,868 — — 24,774

10,921 424,868 — — 36,696

96,876 15,662 — — 236,582

16,220 — 7,279 101,599 14,135

113,096 15,662 7,279 101,599 250,717

22,843

449,642

472,485

349,120

139,233

488,353

3,762,526 338,292 — 264,785

244,657 1,195,378 205,971 148,644

4,007,183 1,533,670 205,971 413,429

3,184,500 362,881 — 60,640

177,852 1,218,650 28,833 171,162

3,362,352 1,581,531 28,833 231,802

Combustion Turbine Station: Supervision and engineering Generation expenses Structures and improvements Miscellaneous Total production (other)

2023 Maintenance

4,365,603

1,794,650

6,160,253

3,608,021

1,596,497

5,204,518

4,388,446

2,244,292

6,632,738

3,957,141

1,735,730

5,692,871

249,044 123,505 9,651 3,214 — 8,165,549

18,100 86,060 131,980 21,886 — 167,123

267,144 209,565 141,631 25,100 — 8,332,672

292,375 398,764 (803) 90,475 — 6,995,647

20,046 2,260 25,298 — 7,592 167,450

312,421 401,024 24,495 90,475 7,592 7,163,097

8,550,963

425,149

8,976,112

7,776,458

222,646

7,999,104 (Continued)

149

Exhibit 43 CITY OF INDEPENDENCE, MISSOURI Schedules of Operating Expenses – Power and Light Fund Years Ended June 30, 2023 and 2022

Operations

2023 Maintenance

Total

Operations

2022 Maintenance

Total

Distribution: Supervision and engineering $ Overhead lines Station expenses Street lights and traffic signals Meters Customer installations Underground lines Dispatching communication Line transformers Structures Miscellaneous

229,196 941,404 120,000 290,864 147,099 427,566 590,447 570,393 — — 1,663,682

54,301 5,688,827 1,583,165 888,229 558,616 — 936,815 — 256,679 7,671 949,133

283,497 6,630,231 1,703,165 1,179,093 705,715 427,566 1,527,262 570,393 256,679 7,671 2,612,815

310,705 1,099,720 103,085 279,091 166,988 391,875 447,680 602,333 — — 996,869

60,139 6,326,939 1,034,292 621,762 701,541 — 879,097 — 147,942 116,450 1,193,641

370,844 7,426,659 1,137,377 900,853 868,529 391,875 1,326,777 602,333 147,942 116,450 2,190,510

Total distribution

4,980,651

10,923,436

15,904,087

4,398,346

11,081,803

15,480,149

Total transmission and distribution $

13,531,614

11,348,585

24,880,199

12,174,804

11,304,449

23,479,253

Customer Service: Supervision Meter reading Customer records and collections Provisions for doubtful accounts Miscellaneous

Total customer service General and Administrative: Salaries Office supplies Insurance Injuries and damage Employee benefits Outside services Miscellaneous

264,294 459,130 4,023,610 25,838 166,879

215,620 916,586 2,187,429 407,095 189,711

4,939,751

3,916,441

1,583,738 441,739 1,123,250 745,542 (1,453,076) 4,601,990 1,666,176

1,464,840 630,971 1,727,200 1,105,642 (692,145) 4,238,902 499,595

Total general and administrative

8,709,359

8,975,005

Depreciation and amortization Payroll taxes

11,752,337 1,081,808

11,484,500 844,516

122,053,917

112,910,315

Total operating expenses

150

Exhibit 44 CITY OF INDEPENDENCE, MISSOURI Schedule of Operating Statistics – Power and Light Fund Year ended June 30, 2023

Number of Customers Beginning of Year End of Year Sale of Electric Energy: Metered: Residential Small general services General services – space heating Large general services Large general services – prime voltage Total electric general services Schools, churches, and hospitals Schools, churches, and hospitals, all electric Education Education, all electric Large power services Combined interruptible services Sewer pumping City traffic signals Municipal - City (Buildings)

Private security lighting

54,709 2,959 36 1,623 13 112 204 2 68 8 3 2 7 63 105 — 59,914

Revenue

KWH

53,603 $ 2,928 31 1,612 8 116 201 2 70 8 3 2 7 63 105 1,740 60,499

79,210,982 4,728,962 72,227 36,167,893 1,484,177 5,200,956 1,317,583 4,793 3,601,343 427,984 2,304,097 2,866,426 71,597 87,368 1,097,204 407,257 139,050,849

536,615,127 26,141,990 866,956 266,306,331 12,236,745 46,863,521 9,184,034 30,954 28,003,082 4,131,200 21,173,640 30,574,600 543,314 217,687 12,622,903 1,131,532 996,643,616

96,416 5,761,892 — — 5,858,308 (1,264,161) 8,940,992 40,249 152,626,237

1,795,106 109,136,035 1,228,485 3,744,419 115,904,045 (10,191,279) — — 1,102,356,382

Unmetered:

Wholesale (border customers) revenue Wholesale (interchange)

Power and light usage (building and substations) City Public Street lighting Change in unbilled revenue Other operating revenue EVTC Total operating revenue and total energy sales Net generation Wholesale power purchased Net generation and power purchased

262,066,348 888,219,080 1,150,285,428 986,452,337 110,931,141 4,972,904 1,102,356,382 47,929,046

Disposition of energy - Retail Disposition of energy - Wholesale Disposition of energy - Internal Net disposition Transmission and distribution operating losses

151

Exhibit 45 CITY OF INDEPENDENCE, MISSOURI Schedules of Operating Expenses – Water Fund Years ended June 30, 2023 and 2022

Operations Production: Source of Supply: Supervision and engineering Labor and expenses Structures and improvements Miscellaneous Total source of supply Power and Pumping: Supervision and engineering Fuel/power purchased Labor and expenses Structures and improvements Total power and pumping Water Treatment: Supervision and engineering Chemicals Labor and expenses Structures and improvements Miscellaneous Total water treatment Total production Transmission and Distribution: Supervision and engineering Storage facilities Transmission and distribution lines Meters Customer installations Services Hydrants Miscellaneous Total transmission and distribution Customer Service: Customer accounting paid and collecting: Supervision Meter reading Customer records Provision for uncollectible amounts Total customer accounting paid and collecting Sales Promotion: Expenses Total customer service General and Administrative: Salaries Office supplies and expense Injuries and damages Employee benefits Pension actuarial adjustment Outside services Miscellaneous Total general and administrative

$ $

2023 Maintenance

Total

Operations

2022 Maintenance

Total

36,485 191,382 — — 227,867

— 6,216 68,661 194,900 269,777

36,485 197,598 68,661 194,900 497,644

27,781 346,006 — — 373,787

— — 23,416 237,552 260,968

27,781 346,006 23,416 237,552 634,755

51,700 2,255,436 (39,846) — 2,267,290

84,854 — — 19,643 104,497

136,554 2,255,436 (39,846) 19,643 2,371,787

40,464 1,906,610 403,762 — 2,350,836

62,418 — — 39,511 101,929

102,882 1,906,610 403,762 39,511 2,452,765

62,237 1,888,166 317,620 — — 2,268,023 4,763,180

25,753 — — 191,472 227,779 445,004 819,278

87,990 1,888,166 317,620 191,472 227,779 2,713,027 5,582,458

48,261 1,439,726 1,024,530 — — 2,512,517 5,237,140

20,480 — — 269,671 502,642 792,793 1,155,690

68,741 1,439,726 1,024,530 269,671 502,642 3,305,310 6,392,830

23,966 22,509 1,625,400 52,647 100,243 — — 142,858 1,967,623

— — 914,839 96,126 — 189,101 63,417 (174,313) 1,089,170

23,966 22,509 2,540,239 148,773 100,243 189,101 63,417 (31,455) 3,056,793

1,699 21,086 1,576,576 47,726 113,546 — — 665,405 2,426,038

— — 662,001 73,516 — 124,390 168,865 156,312 1,185,084

1,699 21,086 2,238,577 121,242 113,546 124,390 168,865 821,717 3,611,122

Depreciation and amortization Payroll taxes Other Total operating expenses Certain amounts are presented as a reduction of operating expenses, whereas they are included as miscellaneous revenue in the statement of revenues, expenses, and changes in fund net position $

152

337,841 1,243,552 1,454,040 58,138

352,506 964,215 2,486,916 140,605

3,093,571

3,944,242

5,589 3,099,160

— 3,944,242

350,379 382,836 349,728 471,544 (577,899) 3,165,373 228,503 4,370,464

903,869 340,949 346,064 327,771 (591,049) 2,232,191 483,157 4,042,952

3,253,813 403,491 48,092 19,814,271

3,229,963 397,637 52,121 21,670,867

2,976,054

1,163,178

22,790,325

22,834,045

Exhibit 46 CITY OF INDEPENDENCE, MISSOURI Schedule of Operating Statistics – Water Fund Year ended June 30, 2023 Number of Customers Beginning of Year End of Year Sale of Water: Residential Commercial Industrial Public authority Resale Private fire protection Public fire protection

44,857 3,912 6 194 14 492 —

45,042 3,935 6 193 14 499 —

49,475

49,689

Change in unbilled revenue Other operating revenue

Revenue

MGS*

14,097,468 6,301,425 505,936 221,815 10,709,787 228,272 1,689,666

2,386,721 1,257,705 128,132 41,778 5,168,627 — —

33,754,369

8,982,963

90,689 456,890

Total operating revenue

Thousands of gallons produced: Courtney Bend Plant Less total gallons sold

34,301,948 10,649,140 8,982,963

Unaccounted for water

1,666,177

* Thousand gallons sold.

153

Exhibit 47 CITY OF INDEPENDENCE, MISSOURI Schedule of Operating Statistics – Sanitary Sewer Fund Year ended June 30, 2023 Number of Customers Beginning of Year End of Year Sale of Sanitary Sewer Services: Residential Commercial: Base Surcharge Contract waste treatment Regulatory Compliance Intermunicipal agreements: Sugar Creek Kansas City

Revenue

CCF*

19,689,717

2,334,376

41,850

42,041

3,467 — — —

3,492 — — —

7,913,945 699,991 249,454 6,520,602

1,303,787 — — —

— —

900,372 194,667

— —

45,317

45,533

36,168,748

3,638,163

Other operating revenue Change in unbilled revenue

384,180 133,148

Total operating revenue

* Hundred cubic feet.

154

36,686,076

STATISTICAL DATA The statistical data relates to the physical, economic, social, and political characteristics of the City. Its design is to provide a broader and more complete understanding of the City and its financial affairs than is possible from the financial statements, notes, and supporting schedule presentation in the Financial Section.

STATISTICAL SECTION This part of the City of Independence's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Contents

Tables

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.

1-4

Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue sources.

5 - 15

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

16 - 20

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

21 - 22

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

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

155

23 - 25

Table 1 City of Independence, Missouri Net Position by Component Last Ten Fiscal Years (accrual basis of accounting)

Governmental activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position Business-type activities Net investment in capital assets Restricted Unrestricted Total business-type activities net position Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

333,902,700 16,931,671 (233,876,307) 116,958,064

334,319,837 16,335,599 (255,063,735) 95,591,701

330,518,564 14,823,334 (259,618,128) 85,723,770

325,298,654 13,785,094 (266,833,068) 72,250,680

324,198,133 18,741,314 (378,520,677) (35,581,230)

319,052,806 18,602,877 (269,187,817) 68,467,866

311,168,595 22,279,174 (271,260,070) 62,187,699

309,489,295 24,490,689 (258,060,366) 75,919,618

292,315,112 40,260,773 (234,589,664) 97,986,221

288,411,464 51,099,584 (220,274,228) 119,236,820

240,517,938 16,288,747 59,212,898 316,019,583

230,396,460 16,587,288 49,598,827 296,582,575

238,427,241 17,608,769 33,115,833 289,151,843

216,148,308 22,390,679 53,123,997 291,662,984

214,381,085 23,202,738 8,070,332 245,654,155

216,116,969 25,007,273 57,814,152 298,938,394

211,224,057 25,084,135 69,117,824 305,426,016

222,514,950 25,448,806 54,975,581 302,939,337

225,938,690 16,435,396 82,896,262 325,270,348

240,674,339 17,133,289 99,429,012 357,236,640

574,420,638 33,220,418 (174,663,409) 432,977,647

564,716,297 32,922,887 (205,464,908) 392,174,276

568,945,805 32,432,103 (226,502,295) 374,875,613

541,446,962 36,175,773 (213,709,071) 363,913,664

538,579,218 41,944,052 (370,450,345) 210,072,925

535,169,775 43,610,150 (211,373,665) 367,406,260

522,392,652 47,363,309 (202,142,246) 367,613,715

532,004,245 49,939,495 (203,084,785) 378,858,955

518,253,802 56,696,169 (151,693,402) 423,256,569

529,085,803 68,232,873 (120,845,216) 476,473,460

Note: In 2015 the City adopted GASB Statement No. 68, which restated beginning net position. For the years prior to 2015, the amounts in this schedule have not been restated. Note: In 2018 the City adopted GASB Statement No. 75, which restated beginning net position. For the years prior to 2018, the amounts in this schedule have not been restated. Note: In 2019 the City implemented significant changes to healthcare coverage by moving retirees into a separate Medicare program which resulted in a decrease to the City's recorded Other Post Employment Benefits (OPEB) liability, resulting in an increase to net position.

156

Table 2 City of Independence, Missouri Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting)

2014 Expenses Governmental activities: Administrative Services Public Safety Municipal Services Health and Animal Services Culture and Recreation Community Development Storm Water General Government Tax Increment Financing Interest on long-term debt Total governmental activities expenses

Program Revenues Governmental activities: Charges for services: Administrative Services Public Safety Municipal Services Health Services Culture and Recreation Community Development Storm Water General Government Tax Increment Financing Operating grants and contributions Capital grants and contributions Total governmental activities program revenues

2017

2018

2019

2020

2021

2022

2023

9,348,081 57,226,139 17,740,128 3,672,055 8,004,845 4,876,851 2,917,670 9,462,575 11,531,889 176,912 124,957,145

9,054,549 59,265,485 18,062,959 3,597,625 8,500,729 4,694,568 3,381,187 10,082,656 11,319,659 116,229 128,075,646

10,060,792 59,583,743 17,889,269 2,690,316 8,490,201 5,913,644 3,734,597 9,330,488 16,156,910 108,756 133,958,716

9,787,625 59,355,553 18,384,360 2,190,183 8,659,305 6,364,261 3,722,027 9,749,366 8,756,255 75,246 127,044,181

11,766,972 64,741,468 19,081,925 — 9,829,225 6,866,076 3,854,859 1,047,083 9,743,568 109,479 127,040,655

11,465,578 68,890,126 18,966,524 691,921 9,359,426 6,729,400 3,929,055 838,934 10,786,336 96,297 131,753,597

8,846,826 60,111,785 18,666,752 2,052,328 9,121,110 6,019,417 3,764,430 4,349,995 10,611,180 778,438 124,322,261

7,504,588 63,738,835 20,839,417 2,170,360 8,759,163 6,240,454 3,538,060 992,854 11,146,839 541,914 125,472,484

5,317,752 66,986,969 19,999,077 3,306,814 10,201,048 7,659,845 3,918,103 990,601 23,961,338 463,293 142,804,840

138,801,854 22,140,775 19,015,060 10,859,704 190,817,393

136,825,933 20,921,367 21,822,803 11,218,628 190,788,731

134,873,700 21,913,607 23,512,501 11,734,030 192,033,838

128,209,073 22,136,019 24,420,243 12,067,172 186,832,507

130,197,969 23,976,929 25,605,642 12,287,000 192,067,540

124,700,820 22,519,143 25,728,344 13,218,585 186,166,892

122,805,250 24,940,525 27,191,672 12,178,812 187,116,259

120,251,808 23,866,752 26,149,731 9,732,396 180,000,687

116,113,226 22,529,358 26,942,461 16,697,546 182,282,591

125,623,313 22,954,212 27,820,819 12,512,968 188,911,312

318,483,761

315,745,876

320,109,484

320,791,223

319,111,721

313,207,547

318,869,856

304,322,948

307,755,075

331,716,152

6,904,917 5,154,144 401,793 758,211 613,238 1,089,720 — 978,491 — 10,680,433 3,769,347 30,350,294

7,526,268 5,016,016 391,816 659,329 689,980 1,285,797 — 999,787 — 8,844,808 1,930,309 27,344,110

8,026,010 4,757,394 376,062 198,147 821,976 1,230,826 — 1,263,754 — 9,025,480 575,703 26,275,352

8,206,822 4,670,892 577,574 854,870 843,135 2,529,919 — 1,031,478 — 8,238,425 131,098 27,084,213

8,406,360 4,372,243 537,691 744,308 913,869 2,023,318 — 1,114,160 — 8,908,557 2,239,697 29,260,203

6,533,752 4,513,453 640,034 — 1,264,973 4,535,619 — 1,000,040 — 8,611,746 1,299,857 28,399,474

6,436,938 3,659,764 543,843 10,688 1,017,524 4,394,291 — 771,397 — 7,851,184 824,436 25,510,065

6,394,861 2,960,579 484,731 196,902 512,418 4,032,959 — 1,110,856 — 18,379,425 389,936 34,462,667

6,396,699 2,981,538 578,035 556,853 729,775 5,158,737 — — 988,799 21,098,815 229,348 38,718,599

3,768,977 2,834,631 417,831 595,848 875,378 4,797,497 723 — 984,348 19,179,250 2,202,634 35,657,117

138,813,984 27,545,623 21,471,299 3,359,318 2,386,511 193,576,735

139,078,098 27,838,244 23,545,640 4,273,465 1,613,406 196,348,853

134,747,475 30,858,398 23,743,340 4,461,330 1,425,612 195,236,155

137,945,902 32,260,796 26,029,675 4,771,821 1,322,901 202,331,095

148,047,728 32,953,246 28,812,899 5,241,363 864,452 215,919,688

145,164,378 32,365,391 30,171,515 5,761,559 182,117 213,644,960

128,575,740 31,792,837 33,354,075 4,813,992 37,799 198,574,443

128,548,974 32,648,354 36,164,808 2,399,178 151,769 199,913,083

137,273,615 32,735,657 37,080,181 8,392,112 16,858 215,498,423

152,626,237 34,301,948 36,686,076 4,995,973 50,736 228,660,970

223,927,029

223,692,963

221,511,507

229,415,308

245,179,891

242,044,434

224,084,508

234,375,750

254,217,022

264,318,087

Business-type activities: Charges for services: Power and Light Water Sewer Events Center Capital grants and contributions Total business-type activities program revenues Total primary government program revenues

2016

9,096,123 56,859,801 18,079,671 3,622,207 7,435,735 6,316,004 3,000,734 8,730,105 14,273,775 252,213 127,666,368

Business-type activities: Power and Light Water Sewer Events Center Total business-type activities expenses Total primary government expenses

2015

157

Table 2 City of Independence, Missouri Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting)

2014 Net (expense)/revenue Governmental activities Business-type activities Total primary government net expense

General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes Sales and use taxes Intergovernmental activity taxes Franchise taxes Financial institutions tax Investment earnings (loss) Special item - litigation settlement Special item - OPEB change in benefit terms Miscellaneous Transfers Total governmental activities

Changes in Net Position Governmental activities Business-type activities Total primary government

2016

2017

2018

2019

2020

2021

2022

2023

(97,316,074) 2,759,342 (94,556,732)

(97,613,035) 5,560,122 (92,052,913)

(101,800,294) 3,202,317 (98,597,977)

(106,874,503) 15,498,588 (91,375,915)

(97,783,978) 23,852,148 (73,931,830)

(98,641,181) 27,478,068 (71,163,113)

(106,243,532) 11,458,184 (94,785,348)

(89,859,594) 19,912,396 (69,947,198)

(86,753,885) 33,215,832 (53,538,053)

(107,147,723) 39,749,658 (67,398,065)

7,993,199 41,142,183 10,809,061 10,292,488 19,381 302,394 2,203,430 — 695,896 18,804,684 92,262,716

8,546,600 44,459,358 8,830,000 9,960,928 16,523 256,159 — — 1,960,753 18,676,005 92,706,326

8,485,768 44,683,858 10,351,536 8,528,741 21,116 311,028 — — 796,842 18,753,474 91,932,363

7,978,323 45,348,299 10,776,518 8,703,530 34,130 130,083 — — 1,147,386 19,283,144 93,401,413

8,237,760 46,319,963 11,720,991 8,771,667 34,818 478,931 — — 1,211,700 20,057,532 96,833,362

8,080,629 45,006,244 12,328,192 8,651,580 18,814 2,294,796 — 72,282,213 594,740 20,360,728 169,617,936

8,717,634 46,752,729 13,388,147 7,523,346 32,404 2,897,668 — — 1,469,877 19,181,560 99,963,365

9,684,246 51,500,218 13,724,099 7,376,564 20,601 572,681 — — 1,467,868 19,245,236 103,591,513

9,088,287 58,149,550 12,370,738 8,161,195 60,911 (999,657) — — 1,781,900 20,207,564 108,820,488

9,244,766 70,893,438 12,692,303 9,228,632 29,725 2,741,825 — — 1,070,057 21,758,476 127,659,222

5,397,059 45,754 12,796,570 — — 1,660,835 (18,804,684) 1,095,534

5,600,076 32,746 — — — 1,456,086 (18,676,005) (11,587,097)

5,741,439 176,436 — — — 2,202,550 (18,753,474) (10,633,049)

5,770,850 (35,308) — — — 560,155 (19,283,144) (12,987,447)

5,973,582 674,832 — — — 665,216 (20,057,532) (12,743,902)

6,793,078 5,455,337 — 33,603,664 — 314,820 (20,360,728) 25,806,171

7,783,055 5,526,440 — — — 901,503 (19,181,560) (4,970,562)

8,024,737 28,950 — — (11,196,400) (11,126) (19,245,236) (22,399,075)

8,876,336 (3,126,574) — — — 3,572,981 (20,207,564) (10,884,821)

8,952,353 3,874,424 — — — 1,148,333 (21,758,476) (7,783,366)

93,358,250

81,119,229

81,299,314

80,413,966

84,089,460

195,424,107

94,992,803

81,192,438

97,935,667

119,875,856

(5,053,358) 3,854,876 (1,198,482)

(4,906,709) (6,026,975) (10,933,684)

(9,867,931) (7,430,732) (17,298,663)

(13,473,090) 2,511,141 (10,961,949)

(950,616) 11,108,246 10,157,630

70,976,755 53,284,239 124,260,994

(6,280,167) 6,487,622 207,455

13,731,919 (2,486,679) 11,245,240

22,066,603 22,331,011 44,397,614

20,511,499 31,966,292 52,477,791

Business-type activities: Sales and use taxes Investment earnings (loss) Special item - litigation settlement Special item - OPEB change in benefit terms Special item - electric rebate Miscellaneous Transfers Total business-type activities Total primary government

2015

Note:

In 2015 the City adopted GASB Statement No. 68, which restated beginning net position. For the years prior to 2015, the amounts in this schedule have not been restated.

Note:

In 2018 the City adopted GASB Statement No. 75, which restated beginning net position. For the years prior to 2018, the amounts in this schedule have not been restated.

158

Table 3 City of Independence, Missouri Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

General Fund Nonspendable Restricted Committed Assigned Unassigned

$ All other governmental funds Nonspendable Restricted Committed Unassigned

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

14,141 402,899 437,083 398,283 3,591,990 4,844,396

— 142,966 471,606 1,300,973 3,741,675 5,657,220

11,424 273,164 348,001 1,336,086 3,684,710 5,653,385

— 404,806 261,700 1,648,808 5,982,941 8,298,255

— 395,412 106,884 1,268,521 7,030,007 8,800,824

— 84,386 30,762 574,172 6,591,442 7,280,762

— 78,022 18,105 723,920 5,301,516 6,121,563

19,755 118,750 16,373 465,453 5,700,364 6,320,695

— 93,848 17,145 534,629 6,281,728 6,927,350

— 225,394 50,985 585,157 10,185,654 11,047,190

— 44,679,472 204,117 (6,167,243) 38,716,346

— 43,356,113 164,507 (5,796,859) 37,723,761

665 42,864,399 41,772 (2,929,573) 39,977,263

— 44,066,001 30,198 (1,482,674) 42,613,525

526,245 43,085,814 53,981 (1,440,718) 42,225,322

— 47,556,094 61,507 (1,627,806) 45,989,795

— 74,562,521 81,165 (3,851,954) 70,791,732

— 76,458,587 92,421 (3,574,111) 72,976,897

— 85,993,577 129,414 (3,156,286) 82,966,705

— 86,779,211 136,154 (19,618) 86,895,747

159

Table 4 City of Independence, Missouri Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

Revenues Taxes Licenses, fees and permits Intergovernmental Charges for services Interfund charges for support services Fines, forfeitures, and court costs Investment income (loss) Developer contributions Other Total revenues

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

70,380,577 3,464,631 13,672,530 2,699,813 3,987,029 4,790,383 259,908 250,000 2,445,373 101,950,244

71,412,311 3,785,532 10,337,589 2,905,601 4,544,233 4,652,309 250,763 35,000 2,155,444 100,078,782

71,815,835 3,802,218 9,174,995 3,273,899 4,913,709 4,214,064 286,088 17,025 2,551,667 100,049,500

73,168,146 5,614,626 8,215,395 3,378,711 4,943,014 3,855,121 93,294 — 2,486,708 101,755,015

75,673,475 4,834,935 10,860,762 3,385,145 5,099,696 3,716,388 337,709 — 2,552,686 106,460,796

74,694,144 4,783,828 9,304,404 3,378,423 5,035,500 3,913,825 2,000,253 — 2,774,293 105,884,670

76,307,087 5,012,961 8,315,029 3,153,527 5,035,500 2,890,421 2,704,945 — 2,842,834 106,262,304

82,183,412 4,772,400 18,653,010 2,908,352 5,035,500 2,152,627 552,145 — 2,844,550 119,101,996

87,672,164 5,977,008 21,239,607 3,284,546 5,035,500 2,116,883 (933,587) — 2,960,672 127,352,793

101,937,475 5,072,653 20,683,506 3,785,507 2,354,600 2,125,274 2,402,444 — 2,599,649 140,961,108

Expenditures Administrative Services Public Safety Municipal Services - Public Works Health and Animal Services Culture and Recreation Community Development Storm Water General Government Tax Increment Financing Capital outlay Debt Service Principal Interest Debt issuance costs Total expenditures

7,547,357 49,093,577 5,899,660 3,322,766 5,747,828 6,007,452 1,686,782 7,688,526 2,886,495 12,296,360

7,640,238 49,529,374 5,386,719 3,206,732 5,793,101 4,460,559 1,629,842 8,622,570 1,290,274 14,159,976

7,576,728 50,513,184 4,693,660 3,130,183 5,888,760 4,303,735 1,769,844 8,921,005 859,000 13,890,964

7,834,761 49,939,819 4,791,209 2,464,245 6,013,044 5,226,710 2,271,882 8,543,800 1,136,583 11,951,855

8,051,979 52,410,075 5,495,957 2,114,547 6,163,491 5,865,477 2,092,652 8,968,731 1,083,430 15,078,234

10,429,550 59,828,210 7,470,311 — 7,508,674 6,561,980 2,223,961 343,456 3,124,874 12,808,202

8,583,484 61,192,700 6,484,056 537,806 6,625,256 6,108,787 2,145,806 18,129 4,545,677 10,298,410

8,622,539 62,223,200 6,503,782 2,018,672 7,526,753 5,943,402 2,174,015 3,386,866 3,973,105 13,806,476

10,265,123 70,059,732 6,345,847 2,758,607 7,648,143 6,785,215 2,657,126 59,485 5,859,997 8,858,632

5,057,832 72,593,972 6,246,120 2,975,936 9,352,626 7,583,582 2,604,668 56,400 18,889,484 14,246,744

7,614,702 8,844,986 201,254 118,837,745

8,513,930 9,243,134 240,698 119,717,147

6,833,988 8,541,494 1,156,904 118,079,449

8,107,973 7,214,003 431,670 115,927,554

8,848,975 6,899,667 249,268 123,322,483

7,578,765 6,123,004 — 124,000,987

7,344,377 5,856,638 — 119,741,126

8,200,715 6,102,645 1,216,641 131,698,811

8,563,784 4,841,930 — 134,703,621

6,420,614 4,831,681 — 150,859,659

Excess of revenues over (under) expenditures

(16,887,501)

(19,638,365)

(18,029,949)

(14,172,539)

(16,861,687)

(18,116,317)

(13,478,822)

(12,596,815)

(7,350,828)

(9,898,551)

Other Financing Sources (Uses) Transfers in Transfers out Issuance of debt Premiums/Discounts on debt issued Payment to refunded loans escrow agent Transfers in - utility payments in lieu of taxes Lease or subscription proceeds Total other financing sources

2,630,331 (1,969,709) 6,981,126 74,056 (6,982,279) 18,144,063 — 18,877,588

2,119,880 (1,857,265) 8,770,000 (99,693) (7,887,707) 18,413,389 — 19,458,604

2,964,941 (2,726,803) 50,074,897 (1,168,942) (47,379,813) 18,515,336 — 20,279,616

2,118,908 (1,834,435) 19,604,504 2,585,491 (22,019,468) 18,998,671 — 19,453,671

7,815,722 (7,825,722) 12,052,210 836,091 (15,969,779) 20,067,531 — 16,976,053

3,058,253 (3,068,253) — — — 20,370,728 — 20,360,728

8,806,903 (8,816,902) 17,940,000 — — 19,191,559 — 37,121,560

6,198,157 (8,983,770) 37,297,511 4,689,862 (43,475,884) 19,255,236 — 14,981,112

10,336,872 (12,647,943) — — — 20,168,635 89,727 17,947,291

16,380,819 (20,282,462) — — — 21,760,119 88,957 17,947,433

Special items: Litigation settlement Net change in fund balances Debt service as a percentage of non-capital expenditures

2,203,430

—

4,193,517

(179,761)

2,249,667

5,281,132

114,366

2,244,411

23,642,738

2,384,297

10,596,463

8,048,882

10.85%

8.43%

15.90%

17.45%

15.03%

15.10%

14.94%

12.53%

12.37%

12.43%

Note: In 2019 the Health Department was restructured and remaining functions were moved to other departments. In 2021 the Health Department was restructured as its own department. Animal Services is included in the Health Services category.

160

Table 5 City of Independence, Missouri Sales and Use Tax Revenue Last Ten Fiscal Years

City Sales and Use Tax Revenue:

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

General Fund Tourism Fund (Transient Guest Tax) Street Sales Tax Fund Park Improvements Sales Tax Fund Storm Water Sales Tax Fund Police Sales Tax Fund Fire Sales Tax Fund TIF Funds (consolidated) Events Center Community Improvement District Animal Services Use Tax Police Use Tax

17,036,996 1,468,758 7,767,525 3,884,655 3,884,641 2,069,621 1,943,700 3,086,287 5,397,059 — —

18,132,065 1,618,246 8,357,101 4,178,652 4,178,663 2,211,890 2,089,554 3,693,187 5,600,076 — —

18,220,678 1,954,406 8,399,825 4,200,128 4,200,147 2,221,976 2,100,451 3,386,247 5,741,439 — —

17,982,053 1,994,953 8,329,801 4,167,642 4,167,558 2,198,883 2,089,313 4,418,096 5,770,850 — —

18,470,762 1,956,256 8,540,878 4,270,461 4,270,479 2,269,600 2,135,284 4,406,243 5,973,582 — —

17,946,599 1,967,003 8,258,900 4,129,442 4,129,446 2,210,139 2,064,701 4,300,014 6,793,078 — —

18,160,631 1,554,582 8,323,739 4,161,885 4,161,887 2,238,572 2,080,829 4,398,792 7,783,055 750,000 921,812

19,138,667 1,321,757 8,999,260 4,499,634 4,499,634 2,365,703 2,250,479 4,675,084 8,024,737 750,000 3,000,000

20,676,408 2,116,326 9,556,264 4,778,115 4,778,115 2,563,038 3,720,007 5,198,526 8,876,336 762,750 4,000,000

22,690,575 2,322,046 10,444,986 5,222,535 5,222,535 2,817,634 11,784,656 5,506,471 8,952,353 782,000 4,100,000

Total

46,539,242

50,059,434

50,425,297

51,119,149

52,293,545

51,799,322

54,535,784

59,524,955

67,025,886

79,845,791

Source: City of Independence Note: the TIF Funds do not include intergovrernmental sales tax activity.

161

Table 6 City of Independence, Missouri Sales Tax Rates Direct and Overlapping Governments Last Ten Calendar Years (in percent)

Direct Sales Tax Rate City of Independence

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

General Fund Street Improvements Park Improvements Storm Water Improvements Police Public Safety Fire Public Safety

1.000 0.500 0.250 0.250 0.125 0.125

1.000 0.500 0.250 0.250 0.125 0.500

Direct Sales Tax Rate City of Independence

2.250

2.625

Transportation Development District

0.125

Total Direct Sales Tax Rate

2.375

2.750

2014 4.000 0.125 0.100 1.125 0.000 0.125 2.250 0.125

2015 4.000 0.125 0.100 1.125 0.000 0.125 2.250 0.125

2016 4.000 0.125 0.100 1.125 0.000 0.125 2.250 0.125

2017 4.000 0.125 0.100 1.125 0.125 0.125 2.250 0.125

2018 4.000 0.125 0.100 1.125 0.125 0.125 2.250 0.125

2019 4.000 0.125 0.100 1.125 0.125 0.125 2.250 0.125

2020 4.000 0.125 0.100 1.125 0.125 0.125 2.250 0.125

2021 4.000 0.125 0.100 1.125 0.125 0.125 2.250 0.125

2022 4.000 0.125 0.100 1.125 0.125 0.125 2.625 0.125

2023 4.000 0.125 0.100 1.125 0.250 0.125 2.625 0.125

7.850

7.975

8.350

8.475

Total Local Option Sales Tax Rate State of Missouri Missouri State Conservation Missouri State Parks and Soil Jackson County Jackson County - Community Children's Services Kansas City Zoo City of Independence Transportation Development District Total Direct and Overlapping Sales Tax Rate

Source: Missouri Department of Revenue Note: Note: Note:

The rate shown for the Transportation Development District is for the 39th Street corridor only. Residents voted to repeal the existing Fire Protection Sales Tax of 1/8 of a cent in effect until December 31, 2026, and instead impose a Sales Tax of 1/2 of a cent to be effective April 1, 2022. Residents voted to continue Jackson County's Community Children's Services Fund at one-fourth of one cent on November 8, 2022.

162

Table 7 City of Independence, Missouri Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years

Fiscal Year Ended June 30,

Taxing Year

Residential Property

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

779,683,482 779,384,690 814,095,793 816,156,782 851,240,599 855,893,579 985,433,731 971,733,748 1,074,005,133 1,088,097,105

Agricultural Property

Real Property Commercial Property

State Assessed

Total

1,138,200 1,138,682 1,227,696 1,240,556 1,246,527 1,212,349 1,153,021 1,175,693 1,191,707 1,197,483

233,988,631 232,114,740 242,938,873 241,685,369 269,580,035 261,658,049 349,795,437 306,961,846 316,976,894 316,525,354

5,106,421 5,387,691 5,523,260 5,480,210 5,484,957 5,795,714 5,608,335 5,753,808 6,263,754 6,777,954

1,019,916,734 1,018,025,803 1,063,785,622 1,064,562,917 1,127,552,118 1,124,559,691 1,341,990,524 1,285,625,095 1,398,437,488 1,412,597,896

Other Property Personal Railroads Property & Utilities 257,382,527 244,122,675 248,605,246 259,387,309 264,036,773 276,071,272 269,306,567 273,664,601 295,272,661 372,695,125

3,528,618 2,857,999 2,771,990 2,848,806 2,657,765 2,862,628 2,582,419 3,010,655 2,897,431 3,051,407

Note:

The assessed value is set at 19% for residential property; 12% for agricultural property; and 32% for commercial property of the estimated fair market value.

Note:

The City does not assess taxes on personal property.

Source:

Jackson County Assessor's Office and Clay County Assessor's Office.

163

Total Taxable Assessed Value 1,280,827,879 1,265,006,477 1,315,162,858 1,326,799,032 1,394,246,656 1,403,493,591 1,613,879,510 1,562,300,351 1,696,607,580 1,788,344,428

Total Direct Tax Rate

Estimated Market Value

Assessed Value as a Percentage of Actual Value

0.7394 0.7393 0.7165 0.7216 0.7031 0.7105 0.6078 0.6672 0.6103 0.6059

5,644,201,744 5,595,741,171 5,826,614,435 5,866,135,798 6,151,388,242 6,188,587,536 7,123,537,106 6,932,645,923 7,568,475,671 7,875,868,957

22.69% 22.61% 22.57% 22.62% 22.67% 22.68% 22.66% 22.54% 22.42% 22.71%

Table 8 City of Independence, Missouri Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years (rate per $100 assessed value) City Direct Rates

Fiscal Year ending (June 30) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Taxing Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Notes:

Basic/General Rate 0.5026 0.5026 0.4871 0.4906 0.4780 0.4830 0.4132 0.4535 0.4149 0.4119

Public Health & Recreation 0.2368 0.2367 0.2294 0.2310 0.2251 0.2275 0.1946 0.2137 0.1954 0.1940

Overlapping Rates

Debt Service — — — — — — — — — —

Total Direct 0.7394 0.7393 0.7165 0.7216 0.7031 0.7105 0.6078 0.6672 0.6103 0.6059

Metropolitan Junior College 0.2369 0.2374 0.2343 0.2339 0.2297 0.2305 0.2047 0.2128 0.2028 0.2028

Independence School District 5.700 5.700 5.913 5.913 5.801 5.801 5.498 5.538 5.437 5.437

Jackson County 1.0464 1.0317 1.0038 1.0117 1.0685 1.2867 1.1371 1.1511 1.1032 1.1109

State 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030

(1) Taxes are due November 1, delinquent after December 31. A penalty of 1% per month, up to a maximum of 10% is added for each month of delinquency. Collections are enforced through the attachment and sale of the property. Commercial real property is also assessed an additional "replacement tax" of 1.437 per $100 assessed value. (2) The General Fund and Public Health & Recreation Fund levy rates are limited by Missouri Statutes to $1.00 and $.40, respectively, per $100.00 assessed valuation. There is no limit on the levy rates for General Debt and Interest. (3) County Tax Breakdown (see note 5): Health & Welfare Fund General Fund Road & Bridge Fund Park Fund Mid-Continent Public Library Developmentally Disabled Mental Health Total County

0.1647 0.2455 0.0718 0.1100 0.3240 0.0836 0.1113 1.1109

(4) Three other school districts are in the Jackson County portion of the City of Independence. School tax rates for these districts are: Fort Osage Reorganized #1 6.3700 Blue Springs Reorganized #4 5.7286 Kansas City School District 4.9599

164

Table 9 City of Independence, Missouri Principal Property Taxpayers Current Year and Ten Years Ago

2023

Taxpayer Southern Union Company RCP-N LLC DT Independence Commons LLC Mansion Apartments Grace Holdings Independence LLC Unilever Manufacturing Inc BRE Space Kansas City LLC Centerpoint Medical Center Seven65 Cornerstone LLC Burd & Fletcher Co Simon Property Group Cole DDR Mt Independence LLC Comcast Cablevision Sprint AT&T Total

2014

Total Assessed Value

Rank

Percentage of Total Taxable Assessed Value

18,174,080 12,132,935 9,876,480 9,161,377 7,449,660 6,247,796 6,147,862 5,818,209 5,387,450 4,920,361

1 2 3 4 5 6 7 8 9 10

1.02% 0.68% 0.55% 0.51% 0.42% 0.35% 0.34% 0.33% 0.30% 0.28%

85,316,210

4.77%

Source: Jackson County Collection Department

165

Total Assessed Value $

Rank

5,953,893

4,530,213

4,737,385 6,730,787 4,125,533

7 3 9

26,224,136 8,963,343 3,685,525 4,893,443 4,813,889 74,658,147

1 2 10 5 6

Percentage of Total Taxable Assessed Value 0.46% 0.00% 0.00% 0.35% 0.00% 0.37% 0.53% 0.32% 0.00% 0.00% 2.05% 0.70% 0.29% 0.38% 0.38% 5.83%

Table 10 City of Independence, Missouri Property Tax Levies and Collections Last Ten Fiscal Years

Fiscal Year Ended June 30,

Taxing Year

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Collected within Fiscal Year of Levy Percentage Amount of Levy

Taxes Levied for Fiscal Year (1) $

7,625,313 7,468,109 7,633,251 7,781,711 7,844,329 8,057,649 7,903,568 8,485,960 8,376,081 8,230,672

7,145,159 7,164,660 7,182,858 7,396,095 7,374,105 7,589,114 7,554,965 7,942,736 8,181,219 7,904,114

93.70% 95.94% 94.10% 95.04% 94.01% 94.19% 95.59% 93.60% 97.67% 96.03%

Source: City of Independence Note: (1) Includes subsequent adjustments to tax levy.

166

Total Collections to Date Percentage Amount of Levy

Collections in Subsequent Years $

480,136 302,982 449,674 384,651 468,623 449,097 320,760 501,822 62,979 —

7,625,295 7,467,643 7,632,533 7,780,746 7,842,727 8,038,211 7,875,724 8,444,558 8,244,198 7,904,114

100.00% 99.99% 99.99% 99.99% 99.98% 99.76% 99.65% 99.51% 98.43% 96.03%

Table 11 City of Independence, Missouri Total Utility Sales by Category Last Ten Fiscal Years

Sales by Category:

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

72,259,000 56,809,000 4,867,000 2,254,000 599,000

70,622,000 58,251,000 4,727,000 2,369,000 493,000

68,081,000 54,249,000 4,187,000 3,298,000 367,000

71,368,000 55,067,000 4,464,000 1,751,000 238,000

76,223,000 56,522,000 5,152,000 3,088,000 302,000

76,873,000 52,656,000 3,898,000 5,780,000 274,000

69,507,000 48,512,000 3,549,000 5,620,000 156,000

67,426,000 47,513,000 3,454,000 5,040,000 104,000

71,109,000 46,554,000 5,707,000 5,832,000 414,000

78,708,000 52,443,000 6,232,000 5,858,000 404,000

Water: Residential Commercial Industrial Public Authority Sold to Other Utilities Other

13,052,557 3,555,507 769,857 262,012 8,136,297 1,760,366

13,147,584 3,491,458 605,223 318,503 8,322,743 1,845,426

14,272,445 3,759,332 694,902 281,902 9,461,694 1,981,057

15,288,208 4,135,439 605,996 344,489 9,814,368 2,146,939

15,647,744 4,477,410 583,867 300,755 9,753,385 2,199,111

13,699,721 5,515,624 1,265,360 256,247 9,878,165 2,327,662

13,367,035 5,664,412 683,790 209,639 9,775,067 2,154,021

13,691,456 5,695,898 609,886 216,085 9,968,031 2,121,321

13,604,181 5,900,843 615,875 214,091 10,037,834 2,194,834

14,097,468 6,301,425 505,936 221,815 10,709,787 2,374,828

Sanitary Sewer: Residential Commercial Other

11,329,939 5,755,295 4,295,186

11,545,538 5,875,596 6,073,994

12,121,229 5,402,688 6,148,154

12,340,133 5,903,198 7,865,081

14,001,286 6,221,026 7,889,045

15,766,174 7,080,859 7,846,608

17,582,711 7,567,127 8,097,157

19,705,726 8,385,352 7,555,644

19,970,942 8,515,729 8,489,981

19,689,717 8,613,936 8,249,275

185,705,016

187,688,065

184,305,403

191,331,851

202,360,629

203,117,420

192,444,959

191,486,399

199,160,310

214,409,187

Power and Light: Residential Commercial Industrial Sold to Other Utilities Other

Total

Source: City of Independence

167

Table 12 City of Independence, Missouri Total Utility Rates by Category Last Ten Fiscal Years

Rates by Category: Power and Light (per Kwh): Residential Commercial Industrial Sold to Other Utilities Other

2014

2016

2017

2018

2019

2020

2021

2022

2023

0.14 0.12 0.09 0.04 0.10

0.14 0.13 0.09 0.03 0.12

0.14 0.12 0.08 0.02 0.09

0.14 0.12 0.07 0.02 0.06

0.14 0.13 0.08 0.04 0.08

0.14 0.12 0.07 0.03 0.25

0.13 0.11 0.07 0.02 0.14

0.13 0.12 0.07 0.04 0.53

0.14 0.12 0.09 0.05 0.36

0.15 0.13 0.10 0.05 0.36

Water (per 1,000 gallons): Residential Commercial Industrial Public Authority Sold Otherto Other Utilities

4.49 4.10 2.42 4.16 1.69 NA

4.89 4.44 2.75 4.36 1.80 NA

5.21 4.77 3.21 4.81 1.93 NA

5.57 5.07 3.40 5.05 2.05 NA

5.76 5.36 3.19 4.60 2.09 NA

5.21 7.18 6.58 3.39 2.04 NA

6.08 5.54 3.44 5.56 2.09 NA

5.94 4.98 3.19 5.29 2.08 NA

5.99 5.02 3.64 5.17 2.09 NA

5.91 5.01 3.95 5.31 2.07 NA

Sanitary Sewer (per 100 cubic feet): Residential Commercial Industrial

4.31 3.81 NA

4.49 3.74 NA

4.89 3.55 NA

5.07 3.60 NA

5.49 4.00 NA

6.55 4.98 NA

7.42 5.29 NA

8.38 6.49 NA

8.31 6.23 NA

8.43 6.61 NA

25.49

26.98

28.81

30.23

30.95

36.56

35.90

37.24

37.19

38.08

Total

2015

Source: City of Independence

168

Table 13 City of Independence, Missouri Principal Utility Payers Power and Light Current Year and Nine Years Ago

2023 Total Sales

Utility Customer - Power and Light Burd and Fletcher (5151 Geospace) Centerpoint Medical Center Unilever (Thomas J. Lipton Co) Smart Warehouse/Commercial Distributions Center Independence Mall Holding Quick Trip HCP MOB Centerpoint (Boyer Company) Space Center KC Southwestern Bell Telephone WW Grainger Costco Wholesale Inc. Price Chopper (23rd Street) Cable Dahmer Arena (Events Center) Hy-Vee (Noland Road)

Total

2,216,885 2,070,249 2,035,795 1,470,388 859,340 708,754 696,131 538,416 489,342 441,147 — — —

2014

Rank

Percentage of Total Sales

1 2 3 4 5 6 7 8 9 10

1.54% 1.44% 1.42% 1.02% 0.60% 0.49% 0.48% 0.37% 0.34% 0.31%

11,526,447

8.02%

Source: City of Independence

169

Total Sales $

Rank

Percentage of Total Sales

1,646,393 1,758,546 2,057,363 857,793 1,096,734

3 2 1 5 4

1.20% 1.29% 1.50% 0.63% 0.80%

638,431

0.47%

538,476 468,670 531,343 447,393

7 9 8 10

0.39% 0.34% 0.39% 0.33%

10,041,142

7.34%

Table 14 City of Independence, Missouri Principal Utility Payers Water Current Year and Nine Years Ago

2023

Utility Customer - Water Lee's Summit Blue Springs District #2, Jackson County District #1, Lafayette County Oak Grove District #15, Jackson County Audubon (Lafarge) Corporation District #16, Jackson County Grain Valley Buckner Unilever (Thomas J. Lipton Co)

Total

2014

Total Sales

Rank

Percentage of Total Sales

5,908,934 1,559,237 802,338 583,006 491,680 461,023 278,995 250,443 215,918 183,221

1 2 3 4 5 6 7 8 9 10

17.27% 4.56% 2.35% 1.70% 1.44% 1.35% 0.82% 0.73% 0.63% 0.54%

31.38%

10,734,795

Source: City of Independence

170

Total Sales 4,646,265 1,210,225 573,793 413,388 397,388 285,731 409,265 — 243,447 162,742 207,465 8,549,709

Rank

Percentage of Total Sales

1 2 3 4 6 7 5

16.87% 4.39% 2.08% 1.50% 1.44% 1.04% 1.49%

8 10 9

0.88% 0.59% 0.75% 31.05%

Table 15 City of Independence, Missouri Principal Utility Payers Sanitary Sewer Current Year and Nine Years Ago

2023 Total Sales

Utility Customer - Sewer BP/AMOCO Highland Park Investors Centerpoint Medical Center Independence Mall Holding Unilever (Thomas J. Lipton Co) Independence Housing Authority Space Center of KC Green Lantern City of Independence, Power & Light YES Companies Price Chopper (23rd Street) Smart Warehouse/Commercial Distributions Center Bass Pro

Total

240,414 123,121 107,872 103,440 91,329 75,844 73,793 67,423 36,762 36,189

2014

Rank

Percentage of Total Sales

1 2 3 4 5 6 7 8 9 10

0.66% 0.34% 0.30% 0.28% 0.25% 0.21% 0.20% 0.18% 0.10% 0.10%

956,187

2.62%

Source: City of Independence

171

Total Sales $

194,244 46,265 49,976 46,585 1,044,639 — 49,755 — 79,080 — 18,091 57,836 23,089 1,609,560

Rank

Percentage of Total Sales

2 8 5 7 1

0.91% 0.22% 0.23% 0.22% 4.89%

0.23%

0.37%

10 4 9

0.08% 0.27% 0.11% 7.53%

Table 16 City of Independence, Missouri Ratios of Outstanding Debt by Type Last Ten Fiscal Years

Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Loans Payable $

Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Reference:

167,681,305 162,434,005 159,223,920 153,301,444 142,973,315 135,402,242 145,926,947 139,698,650 131,077,777 124,647,435

Revenue Bonds $

342,793,093 354,386,824 344,168,539 383,308,356 374,751,112 365,808,725 355,501,259 334,701,955 322,431,204 309,798,453

Governmental Activities Neighborhood Financed Improvement District Purchases 453,477 378,531 298,586 217,640 131,694 40,748 33,804 26,859 19,910 11,964

Certificates of Participation — — — — — — — — — —

1,226,414 1,036,529 1,484,037 1,333,212 1,260,264 1,009,999 755,122 1,868,704 1,456,845 1,193,813

Business-Type Activities Financed Loans Payable Purchases — — — — — — — — — —

— — — — — — — — — —

(1) See Table 21 for personal income and population data.

172

Certificates of Participation

Total Primary Government

— — — — — — — — — —

512,154,289 518,235,889 505,175,082 538,160,652 519,116,385 502,261,714 502,217,132 476,296,168 454,985,736 435,651,665

Percentage of Personal Income (1) 18.43% 18.75% 17.72% 16.90% 17.24% 14.58% 16.99% 14.42% 12.31% 11.33%

Per Capita (1) 4,368.43 4,410.74 4,308.35 4,598.48 4,425.32 4,295.59 4,304.48 4,066.08 3,726.86 3,594.16

Table 17 City of Independence, Missouri Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years

General Obligation Bonds

Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Reference:

Note:

— — — — — — — — — —

General Bonded Debt Outstanding Less Amounts Available in Debt Service $

— — — — — — — — — —

Percentage of Est. Actual Taxable Value of Property (1)

Total — — — — — — — — — —

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

(1) See Table 7 for property value data. (2) See Table 21 for population data. The City does not have any General Bonded Debt over the past ten fiscal years. Details regarding the City's outstanding debt can be found in the notes to the financial statements.

173

Per Capita (2) $

— — — — — — — — — —

Table 18 City of Independence, Missouri Direct and Overlapping Governmental Activities Debt As of June 30, 2023

Debt Outstanding

Governmental Unit

Estimated Share of Overlapping Debt

Estimated Percentage Applicable

Debt repaid with property taxes Independence School District Fort Osage Reorganized #1 School District Blue Springs Reorganized #4 School District Raytown School District

164,805,000 91,104,475 247,970,000 124,245,000

93.62% 12.50% 2.70% 8.48%

154,290,441 11,388,059 6,695,190 10,535,976

Subtotal, overlapping debt

182,909,666

City direct debt

125,853,212

Total direct and overlapping debt

308,762,878

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 outstanding debt of those overlapping governments that is borne by the residents and businesses of Independence. 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.

Source:

The debt outstanding data and applicable percentages are provided by each governmental entity, and is based on the City's percentage of assessed valuation within the school district.

174

Table 19 City of Independence, Missouri Legal Debt Margin Information Last Ten Fiscal Years

Debt Limit (1)

2014 256,165,576 368,810

290,306

197,697

118,648

32,474

—

255,796,766

252,710,989

262,834,875

265,241,158

280,666,244

280,698,718

322,775,902

312,460,070

339,321,516

357,668,886

0.144%

0.115%

0.075%

0.045%

0.012%

0.000%

Total net debt applicable to limit Legal Debt Margin

Total net debt applicable to the limit as a percentage of debt limit

2015 253,001,295

2016 263,032,572

2017 265,359,806

2018 280,698,718

2019 280,698,718

Notes: (1) - Article 6, Section 26(b) of the Missouri Constitution permits any county or city, by vote of four-sevenths of qualified electors voting thereon, to incur an indebtedness of city purposes not to exceed 5 percent of the value of the taxable tangible property therein, as shown by the last assessment. (1) - Article 6, Section 26(c) of the Missouri Constitution permits any county or city, by vote of four-sevenths of qualified electors voting thereon, to incur additional indebtedness of city purposes not to exceed 5 percent of the value of the taxable tangible property therein, as shown by the last assessment. (1) - Article 6, Section 26(d) & (e) of the Missouri Constitution provides that any city may become indebted not exceeding in the aggregate an additional 10 percent of the value of the taxable tangible property for the purpose of acquiring right-of-ways, constructing, extending and improving streets and avenues and/or sanitary or storm sewer systems and an additional 10 percent for purchasing or construction of waterworks, electric or other light plants provided the total general obligated indebtedness of the city does not exceed 20 percent of the assessed valuation.

175

2020 322,775,902

2021 312,460,070

2022 339,321,516

2023 357,668,886

Legal Debt Margin Calculation for Fiscal Year 2023 Assessed Value $ 1,788,344,428 Debt Limit (20% of assessed value) 357,668,886 General obligation: City-Wide Neighborhood Improvement Districts Revenue Bonds Total Bonded Debt Less: Electric Utility Bonds Water Utility Bonds Sewer Utility Bonds Events Center Bonds Debt Service Fund Bonds Total net debt applicable to limit Legal debt margin

— 12,000 309,798,453 309,810,453

121,835,722 17,109,562 86,172,373 84,680,796 12,000 — 357,668,886

Table 20 City of Independence, Missouri Pledged-Revenue Coverage Last Ten Fiscal Years

Fiscal Year

Less: Operating Expenses (1)

Revenues

Net Available Revenue

Debt Service Principal

Interest (2)

Coverage

Power & Light (2) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

139,621,307 139,687,551 135,479,674 138,833,337 149,909,406 149,612,959 132,767,233 129,655,541 138,650,120 155,380,962

106,187,200 107,899,251 110,381,924 103,916,192 107,058,654 102,668,316 100,302,200 105,215,502 110,298,225 118,425,443

37,888,784 33,434,107 25,097,750 34,917,145 42,850,752 46,944,643 32,465,033 24,440,039 28,351,895 36,955,519

5,015,000 3,265,000 3,395,000 3,530,000 3,685,000 3,850,000 4,945,000 4,045,000 — 3,210,000

5,853,306 5,670,556 5,539,957 6,607,431 7,036,700 6,872,250 6,700,350 6,490,050 3,781,853 5,413,234

3.49 3.74 2.81 3.44 4.00 4.38 2.79 2.32 7.50 4.29

29,374,518 29,739,720 32,783,397 34,018,812 34,579,510 35,021,121 34,835,219 35,186,966 33,158,186 38,813,972

16,856,321 16,376,953 17,560,790 17,976,941 20,668,017 18,862,896 20,476,713 22,636,000 17,259,387 22,657,864

12,518,197 13,362,767 15,222,607 16,041,871 13,911,493 16,158,225 14,358,506 12,550,966 15,898,799 16,156,108

3,395,000 4,230,000 4,260,000 3,275,000 1,480,000 1,530,000 1,575,000 1,630,000 1,695,000 1,785,000

1,463,831 1,281,338 1,206,338 1,114,613 1,043,288 998,138 951,563 895,338 820,363 733,363

2.58 2.42 2.78 3.65 5.51 6.39 5.68 4.97 6.32 6.42

21,501,256 23,586,443 24,292,174 26,286,812 29,006,929 30,839,962 34,488,587 36,302,460 36,993,679 37,650,664

14,301,898 14,891,692 15,786,512 16,173,501 17,251,859 17,126,837 17,742,410 18,712,810 19,602,997 21,433,196

7,199,358 8,694,751 8,505,662 10,113,311 11,755,070 13,713,125 16,746,177 17,589,650 17,390,682 16,217,468

745,000 1,015,000 1,535,000 1,945,000 2,000,000 2,060,000 2,130,000 2,205,000 2,280,000 3,535,000

2,740,012 3,979,597 4,373,881 4,327,756 4,272,308 4,212,537 4,145,258 4,070,631 3,478,071 2,689,072

2.07 1.74 1.44 1.61 1.87 2.19 2.67 2.80 3.02 2.61

Water (2) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Sanitary Sewer 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Reference: Notes:

Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Operating expenses exclude depreciation, interest expense, amortization, non-operating expenses, OPEB, net pension expense (GASB 68), and payments in lieu of taxes. (2) Numbers displayed for Power and Light are in accordance with FERC accounting. Numbers displayed for Water are in accordance with NARUC accounting.

176

Table 21 City of Independence, Missouri Demographic and Economic Statistics Last Ten Calendar Years

Calendar Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

(1)

Population (1)

Personal Income (thousands of dollars)

117,240 117,494 117,255 117,030 117,306 116,925 116,673 117,139 122,083 121,211

2,778,588,000 2,763,928,856 2,850,820,815 3,183,801,150 3,011,010,408 3,445,545,900 2,956,610,493 3,302,968,383 3,695,818,659 3,844,085,654

Per Capita Personal Income (A) 23,700 23,524 24,313 27,205 25,668 29,468 25,341 28,197 30,273 31,714

Median Age (A) 39.60 41.80 38.60 39.30 37.80 40.20 36.80 39.50 43.70 40.20

School Enrollment (B) 25,320 24,304 25,173 25,076 25,158 25,023 24,408 22,684 22,583 22,657

Unemployment Rate (A) 6.90% 6.70% 5.60% 5.50% 4.70% 4.10% 4.00% 8.00% 6.40% 3.20%

Note:

(1) At the time of preparation of the fiscal year 2021 ACFR, the calendar year 2020 statistics were not yet available for population, per capita personal income, or median age and the 2019 statistics were used for those categories. The 2020 statistics were available and updated during the preparation of the fiscal year 2022 ACFR.

Sources:

(A) Information provided by U.S. Census Bureau, Mid-America Regional Council or Claritas, Inc. (B) Information provided by school districts.

177

Table 22 City of Independence, Missouri Principal Employers Current Year and Nine Years Ago

2023

Employer

Employees

Independence School District Centerpoint Medical Center Winchester (Lake City) City of Independence Government Employee Health Association Phoenix Home Health Rosewood Health Center at the Groves Unilever Cable Dahmer Automotive Burd & Fletcher Jackson County Circuit Court Mid-Continent Library

2,153 1,850 1,545 1,073 770 550 430 385 340 334

Total

9,430

2014

Rank

Percentage of Total City Employment

1 2 3 4 5 6 7 8 9 10

4.00% 3.44% 2.87% 1.99% 1.43% 1.02% 0.80% 0.72% 0.63% 0.62%

2,000 1,600 2,000 1,126 650

2 3 1 4 5

400 190

6 10

350 274 220

7 8 9

16.61%

8,810

Employees

Note: At the time of preparation, the 2023 statistics were not yet available. Statistics for 2023 are shown the same as they were for the 2022 ACFR. Source: Independence Council for Economic Development and Mid-America Regional Council.

178

Rank

Percentage of Total City Employment 3.70% 2.96% 3.70% 2.08% 1.20% 0.00% 0.74% 0.35% 0.00% 0.65% 0.51% 0.41% 16.17%

Table 23 City of Independence, Missouri Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Function/Program General Government City Council Office City Clerk City Manager National Frontiers Trails Museum Technology Services Municipal Court Law - General fund Law - Grant fund Finance Human Resources

10.00 7.00 7.00 5.75 22.00 14.65 6.25 0.25 22.65 7.44

10.00 7.00 7.00 5.00 23.00 14.65 6.23 0.28 22.15 6.75

10.00 7.00 7.00 — 24.00 14.65 6.23 0.28 22.15 6.75

10.00 7.00 7.00 — 24.00 14.65 6.21 0.16 22.15 6.75

10.00 5.00 7.00 — 19.00 13.64 5.71 0.16 16.15 5.00

10.00 2.00 8.80 — 13.48 13.64 5.46 0.29 17.41 5.00

9.00 2.00 8.83 — 13.00 13.64 2.00 — 18.29 5.00

10.00 2.00 7.83 — 11.00 13.64 1.50 1.00 15.00 4.00

10.00 2.00 6.50 — 17.85 14.34 1.00 1.00 14.38 6.00

9.00 2.00 6.50 — — 14.34 1.16 0.24 — —

Public Safety Police - General Fund Police - Grant Fund Police - Use Tax Fund Fire - General Fund Fire - Grant Fund Fire - Sales Tax Fund

291.91 13.00 — 169.25 4.75 —

296.91 7.00 — 169.75 5.25 —

296.91 7.00 — 173.75 1.25 —

295.91 6.00 — 173.75 1.25 —

281.26 7.00 — 172.75 1.25 —

294.36 7.00 — 175.50 1.25 1.50

318.96 — — 172.50 1.00 1.50

292.36 — 6.00 176.00 1.50 2.00

288.08 6.25 30.00 176.50 — 2.00

289.90 4.43 30.00 174.50 — 24.00

Municipal Services General Fund Street Sales Tax Fund

80.27 3.00

64.00 3.00

66.50 3.00

63.00 3.00

50.45 3.00

44.14 8.40

42.28 7.55

Health and Welfare General Fund Grant Fund Health Property Tax Levy Animal Shelter Use Tax Fund

29.33 9.06 — —

28.56 6.86 — —

28.56 7.13 — —

29.52 8.15 — —

15.10 8.40 — —

— — — —

— — 9.00 15.35

— 5.00 13.90 13.85

— 4.70 12.90 14.00

Culture and Recreation General Fund Tourism Fund Park Improvement Sales Tax Fund Parks & Recreation Property Tax Levy

27.85 5.66 24.70 —

27.10 8.18 26.61 —

27.10 14.18 26.61 —

26.52 13.00 28.22 —

22.69 14.25 29.06 —

27.43 14.42 34.31 —

19.45 16.82 31.93 —

— 14.96 31.80 24.83

— 11.62 33.46 26.40

3.00 14.75 40.16 16.40

Community Development General Fund Community Dev Block Grant Fund HOME Program Fund

27.30 2.00 1.00

28.68 2.00 1.00

28.18 2.00 1.00

28.50 2.00 1.00

33.82 1.40 0.50

31.96 1.50 0.42

34.25 1.30 0.55

35.65 1.30 0.45

35.70 1.35 0.35

Storm Water Water Poll Control - General Fund Storm Water Sales Tax Fund

— 13.00

— 15.05

— 13.95

— 13.80

— 16.93

— 21.00

Power and Light Finance & Administration - General Fund Power and Light

1.50 238.00

1.50 239.00

1.50 228.00

1.50 225.00

— 212.00

3.00 173.80

— 184.22

— 175.58

Finance - General fund Water

0.85 92.42

0.85 93.42

0.85 93.40

0.85 92.90

— 90.80

— 95.74

— 98.57

— 97.59

Public Works - General fund Water Pollution Control

1.00 70.00

1.00 73.20

— 73.90

— 69.45

— 72.70

— 63.64

— 69.83

— 74.20

9.75

8.00

8.50

9.30

— — — —

18.63 22.50 8.00 —

Water

Sewer

Central Garage Fund Finance & Support Services Finance Technology Services Human Resources Law Worker' Compensation Fund Total

2.00

—

0.12

—

1,220.59

1,223.75

1,229.22

1,228.41

1,152.57

1,152.32

1,131.75

1,087.80

1,149.04

1,176.01

Source: City of Independence Budget Note: During 2015-16 the National Frontiers Trails Museum moved from the General Fund to the Tourism Fund. Note: During 2018-19 the Health Department was restructured and remaining employees were moved to other departments. Note: During 2020-2021, the Health Department was re-established. Note: Fiscal Year 2020-2021 was the first full fiscal year that the Animal Shelter Use Tax Fund and the Police Use Tax Fund were budgeted and operational for a full fiscal year. Note: With the start of Fiscal Year 2022-2023, Finance and Support Services, including Human Resources and Technology Services, moved from General Fund to an internal service fund. Note: Residents voted to repeal the existing Fire Protection Sales Tax of 1/8 of a cent and instead imposed a Sales Tax of 1/2 of a cent effective April 1, 2022. The increase alloweed additional funding for personnel.

179

Table 24 City of Independence, Missouri Operating Indicators by Function/Program Last Ten Fiscal Years

2014

2015

2016

2017

90,403

105,840

99,355

147,127

Total Alarms Public Education Audience

16,929 25,591

18,737 14,787

20,175 6,692

Municipal Services Street Overlay (lane miles) Street Patching Jobs

39 7,718

49 7,561

Health and Welfare Food Handlers Trained Flu Shots Given Animal Control Service Calls

5,187 — 6,255

Culture and Recreation Park Shelter Reservations Number of Sermon Center Memberships Community Development Permits Issued

Fiscal Year 2018

2019

2020

2021

2022

2023

46,024

100,073

91,870

94,609

88,470

85,340

20,790 13,066

21,603 34,800

22,214 7,895

21,500 9,200

23,412 1,000

26,744 1,638

26,685 2,198

69 4,319

110 6,067

57 6,610

68 11,938

61 8,556

47 7,666

38 7,270

29 9,562

5,712 3,200 5,452

4,845 2,434 5,008

4,407 1,741 4,221

4,715 500 4,105

3,856 352 442

3,017 304 3,811

2,544 — 4,076

3,022 — 4,701

3,244 — 5,041

657 1,332

698 1,618

652 2,065

640 1,840

535 1,441

581 1,246

310 865

424 517

1,098 2,390

427 454

3,049

3,155

3,002

3,656

2,509

979

619

718

732

709

293,772

409,320

299,457

292,603

285,823

256,209

214,644

1,758

15,102

8,316

13,470

13,532

14,645

17,934

18,176

16,418

7,990

—

3,875

4,857

56,474

56,709

56,908

57,123

57,413

57,897

57,832

57,557

58,586

58,534

Number of customers Water main breaks

48,253 318

48,384 227

48,615 184

48,863 199

48,799 256

48,841 322

50,489 208

49,432 240

49,476 206

49,690 307

Number of customers Wastewater Treated (Million Gallons)

44,166 2,124

44,793 2,558

44,559 3,229

44,755 2,603

45,115 2,228

44,642 3,400

45,316 3,290

45,484 3,030

45,317 2,433

45,533 2,322

Function/Program Public Safety Police Police Incident Calls Fire

Tourism Site Attendance National Frontiers Trails Museum Number of visitors to museum Power and Light Average number of monthly customers Water

Sewer

Source: Note: Note: Note: Note: Note:

City of Independence During 2015-16 the National Frontiers Trails Museum moved from the General Fund to the Tourism Fund. Police incident calls on the above schedule are lower during 2017-18, due to a computer software upgrade and relocation of the Communications Division. Reporting for this statistic is expected to return to a normal range during 2018-19. During 2020-2021 the number of public education audience for Fire declined to less than 1,000 due to COVID-19 pandemic restrictions. The audience remained low during 2021-2022 due to COVID-19 pandemic restrictions. During 2020-2021 the number of memberships for the Sermon Center declined due to the COVID-19 pandemic and facility closures. Attendance to tourist sites and the National Frontier Trails Museum declined during 2020-2021 due to facility closures and restraints as a result of the COVID-19 pandemic.

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Table 25 City of Independence, Missouri Capital Asset Statistics by Function/Program Last Ten Fiscal Years

2014

2015

2016

Fiscal Year 2018

2017

2019

2020

2021

2022

2023

Function/Program Public Safety Police Police stations Vehicles K - 9 Facility

5 191 1

5 194 1

3 185 1

4 200 1

5 209 1

7 216 1

7 208 1

7 224 1

7 221 1

7 253 1

10 1 45

10 1 46

10 1 45

10 1 48

10 1 46

10 1 48

10 1 51

Municipal Services Total area (square miles) Paved miles

78 560

78 578

78 592

78 599

78 616

79 616

Culture and Recreation Park acreage Parks Community Centers Fitness Centers Ball Fields

887 42 3 3 44

887 43 3 3 44

843 46 3 2 44

827 44 3 2 41

788 41 3 2 38

798 41 3 2 43

793 43 3 2 43

798 43 3 2 43

6 869 4,818

6 870 4,754

6 888 4,983

5 888 5,166

5 889 5,166

5 889 5,094

3 890 5,042

3 868 4,694

3 869 4,952

3 878 4,973

Water mains (miles) Fire hydrants Maximum daily pumpage (millions of gallons)

759 4,910 40

760 4,933 37

760 4,950 39

761 4,967 36

763 5,016 37

764 5,042 36

764 5,053 34

764 5,057 38

766 5,093 35

768 5,149 37

Number of treatment plants Sewers mains (miles) Maximum daily capacity of treatment (MGD)

1 614 32

1 616 32

1 619 27

1 619 32

1 618 32

1 614 32

1 618 32

1 615 32

Fire Fire Stations Fire Training Facilities Vehicles

Power and Light Power stations Transmission/Distribution Circuits (miles) Maximum daily use (Mwh) Water

Sewer

Source: City of Independence Note: Number of parks increased as a result of adding Cassell Park, which was not previously included, as well as separating Crackerneck Park from Van Hook Park.

181

111 East Maple Street P.O. Box 1019 Independence, Missouri 64051-0519 816-325-7000