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HomeMy WebLinkAbout2010CAFR101 1WOW a For # #' December / i MAYOR Phillip a I I , V E; 11 Kowalski-Rogers CITY OF SEWARD 24 . la E M M , Statement of Fiduciary Net Assets Votes to Basic Financial Statements A-1 16 A-2 17 B-1 18 B-2 19 C-1 23 C-2 24 C-3 25-26 D-1 27 NM 0 CITY OF SEWARD rIT Combining Balance Sheet E -1 56 Combining Statement of Revenues, Expenditures and C in Fund Balances E-2 57 Nonmaj or Enterprise Funds: G-3 64 Combining Statement of Net Assets F-1 58 Combining Statement of Revenues, Expenses and H-1 66-67 Change in Net Assets F-2 59 Combining Statement of Cash Flows F-3 60-61 Combining Statement of Net Assets G-1 62 Combining Statement of Revenues, Expenses and Change in Net Assets G-2 63 Combining Statement of Cash Flows G-3 64 General Fund: J-1 82 Balance Sheet H-1 66-67 Schedule of Revenues, Expenditures and J-2 83 Change in Fund Balance —Budget and Actual H-2 68-75 Combining Balance Sheet 1-1 78 Combining Statement of Revenues, Expenditures and Change in Fund Balances (Deficit)1-2 79 Debt Service Funds: Balance Sheets J-1 82 Statements of Revenues, Expenditures and and Change in Fund Balances J-2 83 Capital Project Funds: Combining Balance Sheet K-I 86 Combining Statement of Revenues, Expenditures and Change in Fund Balances (Deficit)K-2 87 wi WY =. Statement of Net Assets L-7 97 Statement of Revenues, Expenses and Change in Net Assets L-8 98 Statement of Cash Flows L-9 99 Schedule of Composition of Net Assets L-10 100 1. Statement of Net Assets L-11 101 Statement of Revenues, Expenses and Change in Net Assets L-12 102 Statement of Cash Flows L-13 103 Schedule of Composition of Net Assets L-14 104 Statement of Net Assets Exhibit P e PART 11 - FINANCLAL SECTION, continued L-16 106 Supplerneqtanr Information, continued L-17 107 Enterprise Funds: L-18 108 Electric: L-19 109 Statement of Net Assets L-i 90-91 Statement of Revenues, Expenses and Change in Net Assets L-2 92 Statement of Cash Flows L-3 93 Schedule of Operating Expenses L-4 94 Schedule of Composition of Net Assets L-5 95 Schedule of Electric Capital Projects L-6 96 WY =. Statement of Net Assets L-7 97 Statement of Revenues, Expenses and Change in Net Assets L-8 98 Statement of Cash Flows L-9 99 Schedule of Composition of Net Assets L-10 100 1. Statement of Net Assets L-11 101 Statement of Revenues, Expenses and Change in Net Assets L-12 102 Statement of Cash Flows L-13 103 Schedule of Composition of Net Assets L-14 104 Statement of Net Assets L-15 105 Statement of Revenues, Expenses and Change in Net Assets L-16 106 Statement of Cash Flows L-17 107 Schedule of Composition of Net Assets L-18 108 Schedule of Harbor Capital Projects L-19 109 Statement of Net Assets L-20 110 Statement of Revenues, Expenses and Change U'l Net Assets L-21 III Statement of Cash Flows L-22 112 Schedule of Composition of Net Assets L-23 113 U a . . a . so - IM Compensated Annual Leave: Statement of Net Assets Statement of Revenues, Expenses and Change in Net Assets Statement of Cash Flows 71MWIIIJMQ Capital Assets: Schedule of Capital Assets Schedule of Changes in Capital Assets Schedule of Capital Assets by Function and Activity Schedule of Changes in Capital Assets by Function and Activity M MrZ-*TW MrM2 M, M, M. State Financial Assistance 1 • 0 . . . L-24 114 L-25 115 L-26 116 L-27 117 M-1 120 M-2 121 M-3 122 MA 123 M-5 124 M-6 125 M-7 126 N-i 127 0-1 128 0-2 129 0-3 130 0-4 131 Q-1 134 11M i- 1 6 1I' Table I Net Assets by Component 138 Table 2 Changes in Net Assets 139 -140 Table 3 Fund Balances of Governmental Funds 141 Table 4 Changes in Fund Balances of Governmental Funds 142 Table 5 General Fund Revenues by Source 143 Table 6 General Fund Tax Revenues by Source 144 Table 7 ProperLy Tax Rotes 145 Table 8 Property Tax Levies and Collections 146 Table 9 Assessed and Estimated Actual Value of Taxable Property 147 Table 10 Principal Property Taxpayers 148 Table 11 Principal T able Sales by Line of Business 149 Table 12 Ratios of Outstanding Debt by Type 150 Table 13 Ratio of Net General Obligation Bonded Debt to Assessed Value d Net General Obligation Bonded Debt per Capita 151 Table 14 Computation of Direct and Overlapping Bonded Debt 152 Table 15 Legal Debt Margin 153 Table 16 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Fund Expenditures 154 Table 17 Revenue Bond Coverage — Electric Enterprise Fund 155 Table 18 Revenue Bond Coverage — Harbor Enterprise Fund 156 Table 19 Demographic and Economic Sta ' cs 157 Table 20 Principal Employers 158 Table 21 Full-Time Equivalent Employees by Fund 159 Table 22 Operating Indicators by Function 160 Table 23 Capital Asset Statistics By Function 161 Table 24 Property Value, Construction, and Bank Deposits 162 Table 25 Miscellaneous Statistics 163 u Ke . I Es Government A udilink Standards 165-166 Independent Auditor's Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A- 13 3 167-16'. Endependent Auditor's Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and • Internal Control Over Compliance in Accordance vAth State ofA lt Audit Guide and Compliance r/ it State SingleAudits 169-170 mg Im al PW Citizens of the city of Seward: The City of Seward (City) Compreheusive Annual Financial Report (CAFR) for the year en December 31, 2010 is hereby submitted in accordance with Alaska Statutes 29 .35.120 and the Sew anCityCode. Th remisreportsatisfiestherequient that the City issues an annual report on its financi position and actes, and that the report be audited by an independent firm of certified pubilaccountants. 6 I / • / `. a 0 a I a I a 11 1 11 is 0 , f . 1 0 B .a' I - - - ; I a I - 1 . 9 WON The Financhd Section includes the auditor's report, Management's Discussion and Analysis W&A), the finamial statements; which include government-wide finan ial statements and fund financial statements with comparative budgetary information, notes to the fimmcial statements, requirtz-4 supplementary information, and combining and individual statements and schedules, as applicable, arranged according to Fund type. over a ten-year period, demographic information, and other non-financial information. W Generally accepted accounting principles require management to provide a narrative introductio overview, and analysis to accompany the basic financial statements, in the form a Management Discussion and Analysis. This letter of transmittal is designed to complement the MD&A and should read in conjunction with it. The City's MD&A can be found immediately following the report of independent auditors. The City is empowered to levy a property tax on both real and personal property located within its boundaries. The property tax is an ad valorem tax. Funding for the General Fund, by order of signjficanc4e is provided by sales tax, payments in lieu of tax assessed to enterprise funds of the City, property tay, recreation and camping fees, hotel/motel tax, intergovernmental revenues, payments in lieu MI m Major Projects The City completed construction of a new $27 million 40-bed long-tem care facility in October, 2009, k 13 0 Acknawledgments Preparation of the CAFR could not have been accomplished without the dedicated service • the entire staff of the finance department We would lilm to express our appreciation to all members of the finance department who assisted and contributed to the preparation of this report. Credit also should be given to the Mayor and the members of Council for their interest and support in planning and conducting the operations of the City of Seward in a responsible and progressive manner. P-*4%as I, nn L oL w RAN a 40 0 i f ills ii low"MIT04,29mr R E = -4 - m Willard Dunham Jean Bardarson 1k ob• rt VaIdatta Tom Smith Vanta. Shafer Marianna Keil g. "FA wwag., F*)hillip Oates Kristin Erchin•_er John Foutz W.C. Casey Kari Anderson Tom Clemons David Squixes Karin Sturdy 1 Linville Christy Terry Mayor Vice Mayor wk,9dkU It W v . i City Manager Finance Director Manager of Electric Utility Public Works Director Harbormaster Chief of Police Fire Chief V-'arks & Recreation Director Library Director LKIr"I Term Expires 2011 2012 2011 2011 2011 2012 2012 Cheryl Brooking City Attorney, Wohlforth, Johnson, Brecht Cartledge & Brooking M M . CITY OF SEWARD Organizational Chart I Citizens Mayor & Council Boards &City Manager City Clerk City Commissions Attorney Planning & Zoning ort & CoCoprcr erce Electric Public Historic utility Works Preservation Police Finance Engineering &Library Building Inspection Harbor Fire Cam unity Parks &E evelo ent ecreation M . m Mikunda Ce7nied I:Lhdir Arcountwit; & ConsultAnts ffm" City of Sewara Alaska rm=T City of Sewari Alaska supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did ii ot audit the infonnation and express no opinion on it The introductory section and statistical tables have not been audited by us and accordingly, we express no opinion on them. I I I IMSTA-REMAII 0 BE M As management for the City of Seward, we hereby offer readers of the City's Comprehensive Annu Financial Report this narrative overview and analysis of the financial activities of the City of Seward the fiscal year ended December 31, 2010. In addition to this discussion and analysis, readers encouraged to read our letter of transmittal found on pages VHAJI • this report, which provid additional summary information. I Excluding business-type activities, the assets of the primary government exceeded liabilities by 66,105,736. Of this amount, $6,476,911 in unrestricted net assets is legally unreserved and available to meet the government's ongoing financial obligations, although the Council has earmarked a portion of these funds for specific purposes. The City's total net assets increased by $1,806,488. Governmental activities increased by 1,278,268 and business-type activities increased • $528,220. The total debt of the governmental activities decreased by $1,016,419 or 3.3%. The total debt of business-type activities decreased by ($1,287,151) or (6.9%). I . Government-wide financial statements summarize the City's overall financial condition and contain both short-term and long-term information. This information is intended to present a broader view of the City as a whole in a manner similar to private-sector business. 2. Fundfinancial statements focus on specific areas of City operations and provide more detail than the government-wide statements. Government-wide Financial Statements The govern-ment-wide financial statements are intended to provide a comprehensive look at all financial zctivities of the City and are presented on the accrual basis of accounting, in a manner similar to a business enterprise. 0 The City of Seward adopts an annual budget for the General Fund. A budgetary comparison statement can be found on page 22 to demonstrate compliance with the annual budget, and a list of budgetary highlights can be found later in this document. The basic govern-mental fund financial Mtements can be found on pages 18-22 of this report Notes to the Basic Financial Statements The notes provide additional information essential to a complete understanding of the data provided in the government-wide and fund financial statements. The notes can be found on pages 29-50 of this report. Other Information In addition to the basic financial statements and aczompanying notes, this report presents certain required supplementary information on the public employee's retirement system on pages 48-50 of this report. R Em= Table I Statement of Net Assets As of December 31, §010«4¥ 200 Capital assets Total assets outstanding Other liabilities Total liabilities Governmental Activities Business-Type Activities SEMMM Net assets: Invested in capital assets, net of related debt 56,122,348 56,208,473 67,773,127 Restricted - - 3,464,536 Unrestricted 9,983,388 MM995 10,289,983 Total net assets $ —81 MY MIN w ffm : EYMMMI)DIMU 11 « # « « 111 w -- » « = < = « §f« activities. 2 Statement of Activities The City's total revenues and expenses for governmental and business-type activities are reflected in the following table. Ended Table 2 Change in Net Assets For the Years r r and 201 2009 Governmental Business-Type Activities Activities Total 2010 2009 2010 200 Sales taxes 3,742,751 3,585,304 3,742,751 3,585,304 Property taxes 960,397 986,473 960,397 986,473 Paym ents in lieu of tax 75,317 84,922 75,317 84,922 Oth er 1,568,270 2,707,097 874,328 955,631 2,442,598 3,662,728 Total revenues 12,921,500 12,456,521 19557,835 17,608,082 32.479.335 30,064,603 Expenses: General government 800,716 1,451,682 800,716 1,451,682 Public safety 3,168,421 3,029,935 3,168,421 3,029,935 Public works 1,991,925 1,456,468 1,991,925 1,456,468 Parks, recreation, and library 1,899,447 1,725,751 1,899,447 1,725,751 Healthcare facilities and unallocated interest 4,309,248 4,147,172 4,309,248 4,147,172 Alaska Sealife Center 731,528 1,294,636 731,528 1,294,636 Electric 8,569,240 10,363,820 8,569,240 10,363,820 Water 1,093,419 1,066,860 1,093,419 1,066,860 Wastewater 1,078,318 916,909 1,078,318 916,909 Harbor 5,947,066 3,934,866 5,947,066 3,934,866 Seward Marine Industrial Center 926,290 990,466 926,290 990,466 Parking 157,229 118,309 157,229 118.309 Total expenses 12,901,285 13,105,644 17.771.562 17,391,230 30,672,847 30,496,874 4 - wo 9P-Mi W. assets E_RR',053 1,466,933 jjZL8 053 6,933) DIN 64,827,468 SQ.999.42 145.826.894 t 3 i z NFL • li ,. lLJ.Lai1 v LY'S i — _. ... — - - .. --.v. 1 y L`. Allocations of the Motor Pool Internal Service Fund to the business-type activities added 169,083 to net assets. The electric utility experienced earnings from operations of $549,221, which is an improvement of $1,492,118 over the prior year. This was almost entirely due to services and supplies costs being $1.6 million lower in 2010 than in 2009, with the bulk of that reflecting lower fuel costs and one-time major repair costs from storm damage to power poles and lines. The net decrease in SMIC net assets of (-$633,486) results from an operating loss of $626,570, which includes depreciation expense of $622,334. Cash balances in the SMIC fund decreased - 18,918, leaving the Fund with an ending cash balance of $0. The net increase in water utility net assets of $842,788 is due entirely from capital contributions of $941,943. The non-major funds experienced the following: increase in parking enterprise net assets of 1,117 and a decrease in cash of (-$24,736) due to the acquisition of automated pay stations and a temporary reduction in the daily parking rate to provide relief to visitors; and a net decrease in wastewater enterprise net assets of (-$298,085) and decrease in cash of (-$74,732). E mmm_ Special Revenue Funds Special revenue fund projects experienced a net decrease in fund balance of (-$24,961) to $75,369, with all but the Fish Ditch Restoration project maintaining a positive fund balance. E Capital Project Funds Capital projects experienced a net decrease in fund balance of (472,625). Most funds maintain a positive fund balance with the exception of the flood mitigation fund (deficit of -$25,019) and library/museum fund (deficit of -$7,953) which are pending reimbursement of capital grants from state and federal agencies. General Fund Budgetary Highlights There were a number modifications to the budget during the year, as described below: Expenditures were increased by $553,918, as follows: $206,188 related to the State payments on behalf of the City for public employee's retirement system costs; $24,383 in police and fire grant costs; and $330,886 in increased budget for contracted services for repairs to the Lowell Point Bridge. W General Il Actual Highlights General Fund revenues exceeded expenditures by $599,093, and after transfers between funds were accounted for, • balance of 98 • revenues came in 5619,936 (6.5%) higher than budgeted. The following budget variances are of particular note: Tax revenues (176,684); ' for services "" Valde Capital Assets As of December 31, 20 10, the City had $171,570,3 82 invested in capital assets net of accumul a depreci ati on, representing an overall increase of •. 09 8 from previous Table 3 City of # Capital a thousands of dej2reciation '. Additional •' •' regarding of • s capital assets can be found in Footnote pages 38-40. Governmental Business Type Activities Activities Total 2010 2009 2010 2009 2010 20-9 Land and improvements 5,432 5,432 17,484 17,484 22,916 22,916 Buildings 57,880 60,377 639 720 58,519 61,097 Improvements other than buildings 9,613 10,399 48,994 51,594 58,607 61,893 Machinery and equipment 7,689 7,346 4,644 4,457 12,333 11,803 Construction in progress 5,760 3,840 11435 8,677 19,195 12,567 Additional •' •' regarding of • s capital assets can be found in Footnote pages 38-40. Table 4 city 1 vt in thousands) w Governmental Business-Type Activities Activities Total 2010 2009 2010 2009 2010 2009 General obligation bonds 2,426 3,246 59 114 2,485 3,360 Revenue bonds 27,000 27,000 14,325 15,000 41,325 42,000 Capital leases 615 811 615 811 Loans 2,930 3,487 2,930 3,487 Compensated absences 457 432 178 152 635 584 Total outstanding debt 11A22 E. w IEl These, financial statements provide a summary overview the financial position and results of operations of all ftinds of the City, aggregated at the government-wide and the major ftmd level. The following statements are included i"i this section: Governmental Funds - Statement of Revenues, Expenditures and Change in Funi Balances Reconciliation of the Changes in Fund Balances of Govermnental Funds to Statement of Activities General Fund - Statement of Revenues, Expenditures and Change in Fund Balance - Budget and Actual MMMM fill 11! Is i a K i qi Iff"O". W See accompanying notes to basic financial statements, 16 Exhibit A-1 CrrY OF SEWARD Statement of Net Assets December 31, 2010 Component IWI Providence Prim n Government Seward Governmental Business-type Medical Agets fivJJjAa Activities 1Q14 Center Cash and investments 10,510,994 3,812,385 14,323,379 62,000 Receivables, net of allowance for doubtful accounts. Taxes 485,456 485,456 Accounts 94,418 1,157,754 1,242,172 2,059,000 Assessments, due within one year 12,886 12,886 Grants, shared revenues, and loans 1,126,956 2,226,759 3,353,715 Accrued interest 104,748 104,748 Note receivable - PSMC 180,822 180,822 Other 237,903 186,212 424,115 58,000 Prepaid items 405,196 405,196 Inventories 8,930 1,109,167 1,118,097 Restricted cash and investments 1,973,360 4,753,318 6,726,678 30,000 Unamorlized bond issuance costs 419,028 204,724 623,752 Assessments, due after one year 50,192 50,192 Internal balances 3,528,580)3,528,580 Capital assets not being depreciated 11,192,117 30,919,169 42,111,286 Capital assets being depreciated 75,182,149 54,27 947 129,459,096 32,000 Total assets 9813832497,102,238,093 ..2001621 Z590 2,241,000 Liabilities Accounts payable 681,851 1,640,808 2,322,659 223,000 Accrued payroll and related liabilities 157,827 75,884 233,711 834,000 Accrued interest 424,690 183,556 608,246 Other accrued liabilities 85,736 85,736 1,651,000 Funds held in trust 24,064 24,064 C mer deposits 217,874 217,874 Unearned revenue 194,487 991,573 1,186,060 30,000 Noncurrent liabilities: Due within one year: Accrued leave 109,056 42,361 151,417 Notes payable 329,310 329,310 Bonds payable 1,555,970 774,030 2,330,000 Capital lease obligations 194,014 194,014 23,000 Due in more than one year: Accrued leave 348,132 135,402 483,534 Notes payable 2,601,006 2,601,006 Bonds payable, net of bond premium and deferred loss 28,081,218 13,718,643 41,799,861 Capital lease obligations 420,716 420,716 15,000 Other liabilities 31,000 Total liabilities 32,277,761 20,710,447 52,988,208 2,807,000 Net Assets Invested in capital assets, net of related debt 56,122,348 67,773,127 123,895,475 6,000) Restricted for capital projects and bond retirement 3,464,536 3,464,536 3,000 Unrestricted (deficit)9,983,388 10,289,983 20,273,371 563,000 Total net assets 66,105,736 81,527,646 147,633,382 Total liabilities and net assets S 98,383,497 102,238,093 200,621,590 2,241,000 See accompanying notes to basic financial statements, 16 CITV OF SEt •D M Stument of, c es 0 Year Er 31, 202 Functions: S 800,716 201,335 205,135 394.246)394,246) 3,168,421 682,906 1,097,039 1,388,476)1,388,476) 1,991,925 168,196 245,372 1,578X7)1,578,357) 1,462,365 608,361 163,503 9.481 681,020)691,020) 437,082 13,794 6,300 603,457 186,469 186,469 2,804,000 2,569,886 23 4, 1 14)234,114) 731,528 731,528)731,528) 1,505,248 1,505,248 )1,505,248 12,901,285 4,244,478 620,310 1,709,977 L6,326,5 8,569,240 8,842,150 13,482 252,413 538,805 538,805 1,093,419 1,034,888 8,776 941,943 892,188 892,198 1,0783 18 851,416 8,712 218,190)218, 1 90) 5,947,066 2,803,828 2,641,980 794,074 292,816 292,816 926,290 296,139 1,660 628,491)628,491) 157,229 192,0"34 34,817 17,771,562 020,4-6714 7,674M0 1,988,430 911,945 911,945 S 30,672,947 18 264,945 3,294,920 3,698,407 b 326 911,945 5 414 575) Net assets at beginning of year Net assets (deficit) at end of year 2, 161,000 S 3,742,751 3,742,751 - 960,397 960,397 - 328,396 328,396 - 75,3 75,3 - 753,653 720.040 1,473,693 139,940 149,288 288,229 347,281 - 347,291 - 5,000 5,000 4,000 2,999.000) 1,258,053 i 258 053 - 7,604,788 3 __ (83,725 7,121,063 1,278,268 528,220 1,806,488 (834,000) 64,827,468 80,999, 145,826,894 269,000 66,105,736 81,527,646 147,633,382 _ (566,00 See accompanying notes to is financial statements. 17 Exhibit 8-1 CITY OF SEWARD Governmental Funds Balance Sheet December 31, 2010 Major Funds Seward Mountain Total Haven Debt Nonmajor Governmental Ass ets General Service Funds Funds Cash and investments 6,799,913 1,689,692 888,876 9,378,481 Receivables, net of allowance for doubtful accounts: Taxes 485,456 485,456 Accounts 84,418 84,418 Grants and shared revenues 2,190 1,124,766 1,126,956 Other receivables 235,989 1,914 237,903 Accrued interest 41,616 41,616 Note receivable - PSC 180,822 180,822 Prepaid items 395,196 10,000 405,196 Inventory 8,930 8,930 Due from Other funds 1,158,083 1,158,083 Restricted cash and investments 1 1 973,360 Total assets 11,129,984 1 2,025,556 15,081,221 Liabilities and Fund Balances Liabilities- Accounts payable 417,546 264,305 681,851 Accrued payroll and related liabilities 157,827 157,827 Accrued liabilities 85,736 85,736 Accrued interest 75,299 75,299 Funds held in trust 24,064 24,064 Due to Other funds 897,048 897,048 Deferred revenue 211,257 6,279 217,536 Interfund loans payable 3,407,625 3,407,625 Tom] liabilities 4,379,354 1,167,632 5,546,986 Fund baler Reserved: Inventory and prepaids 404,126 404,126 Nate receivable - PSMC 180,822 180,822 Debt service 1,925,681 546,695 2,472,376 Unreserved: Designated: Working capital 1,500,000 1,500,000 Insurance 126,418 126,418 Hospital line of credit 500,000 500,000 Capital Project Funds - capital improvements 268,832 268,832 nesignated, reported in: General Fund 4,039,264 4,039,264 Special Revenue Funds 75,369 75,369 Capital Project Funds (deficit)32,972 32,972) Total fund balances 6,750,630 1,925,681 857,924 9,534,235 Total liabilities and fund balances 11,129,984 1,925,681 2,025,556 15,081,221 See accompanying notes to basic financial statements. 18 CITY OF SEWARD Reconciliation of Governmental Funds Balance Sheet to Statement of Net Assets December 31, 2010 ro IT, TNIT n I • Capital assets used in governmental activities are not 813,655 financial resources and therefore are not reported in the funds. These assets, net of accumulated Internal depreciation consist of:Governmental Service Land 5,432,289 Service Construction in progress 5,759,828 Buildings 79,892,040 7,300) 1mprovements other than buildings 24,262,564 Machinery and equipment 11,437,695 5,311,135 Accumulated depreciation 359,548) 2 Total capital assets 83,511,166 2, Other long-term assets are not available to pay for current 29,988,785)31,058,497 period expenditures and therefore are deferred in the funds. Governmental funds report the effect of bond issuance costs when debt is first issued, whereas these amounts are defer and amortized in the Statement of Net Assets. 9 F OR ff .4 n FEW RUM RM Ell Total net assets of governmental activities $ 66 05,736 See accompanying notes to basic financial statements. 19 813,655 Long-term liabilities, including bonds payable, the related accrued interest and accrued leave are not due and payable in the current period and are therefore not Internal reported as fund liabilities, These liabilities consist of.Governmental Service General obligation bonds payable 29,425,970) Accrued interest on bonds 342,090)7,300) Capital leases payable 9,507)605,224) Accrued leave 457,188) Unamortized bond premium 359,548) Unamortized deferred loss on refunding 148,330 Total long term liabilities 29,988,785)31,058,497 Total net assets of governmental activities $ 66 05,736 See accompanying notes to basic financial statements. 19 CITY OF SEWARD Governmental Funds Statement of Revenues, Expenditures and Change in Fund Balances Year Ended December 31, 2010 M-2 -07 : Ending fund balances 6,750,630 1,925,681 857,924 9,534,235 See accompanying notes to basic financial statements. 20 Mai or Funds Seward Total Mountain Govern - Haven Debt Norunajor mental General Service Funds Funds Revenues: Taxes 5,102,154 5,102,154 Licenses and permits 148,948 148,948 Intergovernmental 1,411,651 1,997,756 3,409,407 Charges for services 2,853,310 2,853,310 Fines and bails 10,210 10,210 Investment income 122,710 12,775 3,455 138,940 Exxon Valdez settlement 347,281 347,281 Other 185,109 2,569,886 222,185 2,977,180 Total revenues 10,181,373 2,582,661 2,223,396 14,987,430 Expenditures: Current: General government 2,618,296 153,087 2,771,383 Public safety 3,030,665 1,097,039 4,127,704 Public works 1,609,737 276,972 1,886,709 Parks and recreation 1,219,182 173,301 1,392,483 Library 389,307 637,490 1,026,797 Healthcare facilities 30,076 30,076 Debt service: Principal payments 103,386 735,000 838,386 Retirement benefits 529,778 529,778 Interest and other costs 81,929 1,292,662 86,724 1,461,315 Total expenditures 9,582,280 1,292,662 3,189,689 14,064,631 Excess of revenues over under) expenditures 599,093 1,289,999 966,293)922,799 Other financing sources (uses): Transfers in 1,765,586 1,026,855 2,792,441 Transfers out 1,380,920)153,468 1,534,388 Net other financing sources (uses)384,666 873,387 1,258,053 Net change in fund balances 983,759 1,289,999 92,906)2,180,852 Beginning fund balances 5,766,871 635,682 950,830 7,353,383 Ending fund balances 6,750,630 1,925,681 857,924 9,534,235 See accompanying notes to basic financial statements. 20 CITY OF SEWARD Reconciliation of the Changes in Fund Balances of Governmental Funds to Statement of Activities Year Ended December 31, 201 M- Net change in fund balances - total governmental funds $ 2,180,852 IF Statement of Activities is different because: Governmental funds report capital outlays as expenditures. However on the Statement of Activities, depreciation expense is recognized to allocate the cost of these items over their estimated useful lives. This is the amount by which capital outlays of $2,542,883 exceeded depreciation and is on asset disposals • $4,263,797. (1,720,914) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. This is the increase in other long-term assets. 4,707 Governmental funds report the effect of bond issuance costs when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. (19,719) General obligation bond payments 819,905 Amortization of deferred loss on refunding 49,445) A-moritzation of bond premium 16,920 Capital lease payments 18,480 Decrease in accrued interest on bonds 5,513 811,373 An internal service fund is used by management to charge the cost of vehicles and heavy equipment to individual funds. A portion of the net revenue of these activities attributable to governmental activities is included in the governmental column on the Statement of Activities-21,969 Change in net assets of goverruliental activities $ 1,278,268 a] CITY OF .1 General Fund Statement of Revenues, Expenditures and Change in Fund Balance - Budget and Actual Year Ended December 31, 2010 Transfers in 2,113,983 1,765,586 1,765,586 - Variance 1,616,252 Original Final Net other financing sour (uses) Positive 136,064 Budge Bud et Ac e ative Revenues: Beginning fund balance 5,766,871 Taxes 5,178,838 5,178,838 5,102,154 76,684) Licenses and permits 163,771 163,771 148,948 14,823) Intergovernmental 1 1,391,071 1,411,651 20,580 Charges for services 2,466,107 2,449,057 2,853,310 404,253 Fines and bails 17,000 17,000 10,210 6,790) Exxon Valdez settlement 347,281 347,281 Investment income 196,000 196,000 122,710 73,290) Other 148,650 165,700 185,109 19,409 Total revenues 9,330,866 9,561,437 10,181 619,936 Expenditures: Current: General government 2,800,693 2,819 2,618,296 200,753 Public safety 3,129,517 3,173,568 3,030,665 142,903 Public works 1,513,226 1,858,078 1,609,737 248,341 Parks and recreation 1,182,403 1,219,288 1,219,182 106 Library 399,363 404,566 389,307 15,259 Debt service: Principal pa ents 159,828 159,828 103,386 56,442 Retirement benefits 543,132 647,703 529,778 117,925 Interest and other costs 84,892 84,892 81 2,963 Total expenditures 9,813,054 10,366,972 9,582,280 784,692 Excess of revenues over under) expenditures 482,188)805,535)599,093 1,404,628 Transfers in 2,113,983 1,765,586 1,765,586 - Transfers out 1,616,252 1,901,650)1,380,920 520,730 Net other financing sour (uses)497,731 136,064 384,666 520,730 Net change in fund balance 15,543 941,599 983,759 1,925,358 Beginning fund balance 5,766,871 Ending fund balance 6,750,630 See accompanying notes to basic financial statements. 22 S 1,252,792 1.776,249 35,405 793,344 3,812,385 1,132,513 870,658 86,175 147.507 44.621 74,030 1.222,991 Notes payable 2.478,514 63,132 1,531 7,069 4,286 Capital lease obligations 12,886 1 5,933 15,933 64,666 Total noncurrent liabilities 386,383 1, ,376 7,081,949 2,226,759 7,722,004 166,212 Net assets: 20,000 186,212 39,180)3,626)19,100) 2,617092 3,331)65.237) Rzstricted For capital projects and bond retirement 1 ,039,345 69,822 1,109,167 2,054,499 1,798,615 3,749,318 4_4621 87_4043 8,521,096 1260,311 1,712.994 141,594 2,796,625 112,115 4,753,318 10,449 24,742 15,002 50,192 119,581 85,143 204,724 368,742 1,973,360 2,342,102 1,130,899 10,006,497 799,941 7.979,909 12,021,821 111,011 30,919,169 46,572,549 8,394,357 24,393,563 41,132.868 12.680.132 133,163,469 5,311.136 28 ,148, 922 7 ,448, 259 2526_2718 26,174,3"5 92,5446,452 3,994,000 S 30,203,421 9246,974 29,012,036 26,218,965 6,386252 101,067,548 5,254,311 33,399 5,230 1,577,647 15,331 9,005 1,640,808 233,894 27.141 261,035 34,755 7,936 23.525 1,832 7,836 75,884 28,884 114,400 36,168 172 3,932 183.556 7,300 19,767 4.525 14.228 3,841 42,361 109,056 330,000 385,000 59,030 774030 212,957 116,353 329,310 184.507 21,193 21,193 167,074 50,800 217,874 4,857 946,716 40,000 991,573 852,630 345,048 3,055,277 143,706 140,963 4,537,624 300,863 Accrued annual leave 72.492 11,881 35,405 945,924 Bonds payable 6,730,000 79.950.090 6,880,000 Unamortized bond premium 66,882 112,720 Notes payable 2.478,514 Unamortized deferred loss on refunding 70,959) Capital lease obligations Interfund loans 124,783 Total noncurrent liabilities 6,869,374 2,490,395 7,081,949 Total I iabilifies 7,722,004 2,835,443 10,137,226 143,706 Net assets: Invested in capital assets. net of related debt 18,810,285 2,617092 15,069.187 26,115,314 Rzstricted For capital projects and bond retirement 677,911 2,786,625 UnrcstricL-d (deficit)2,993,221 3 1,018,998 40 053 Total net assets 22.491.417 6.411.431 19.974.910 26.075.259 Total liabilities and net assets $ 30,203,421 9,246,874 29.012,036 26,218,965 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Net assets of business-type activities 279,079 21,117,45 5,161,249 67,773,127 3.464,536 945,924 8,712 6,107,173 79.950.090 6,386,252 1,577,556 81,527,646 3.48,132 4.20,717 768,849 1,069.712 2,257,977 1.926,722 4,184,599 5,254,31 1 See accompanying notes to basic financial statements. 23 CITY t+Ti t Proprietary Yew Ended December 31, t Operating revenues: Charges for services Vehicle rental and interfund charges Total operating revenue- Operating expenses: Salaries and benefits Services and supplies Administration Depreciation Total operating expenses Earnings (loss) from operations Enterprise Funds Total internal Major Funds Nonmajor Enterprise Service Ele i ater Harbor iC Lunds EUnds Funds S 8,842,150 1,034,888 2,803,828 296,139 1,043,462 14,020,467 803,669 8,842,150 1,034,888 2,803,828 296,139 1,043,462 14,020,467 803,669 142,418 273,392 842,203 73,178 380,886 1,712,077 360,287 4,377,609 348,040 597,157 139,984 423,406 5,886,196 2,140 2,334,870 224,914 345,527 87,213 161,667 3,154,191 1,438,032 204,604 1,086,891 622,334 290,246 3,642,107 339,354 8,292,929 1,050,950 2,871,778 922,709 1,256,205 14,394,571 701,781 549,221 16,062)67,950)626,570)212,743)374,104)101,888 13,482 8,776 2,641,980 1,660 8,712 2,674,610 56,187 36,215 47,114 264 9,508 149,288 66,670 323,864)39,793)341,168)3,581)3,468)711,874)24,635) 720,040 720,040 5,000 5,000 47,129 40,624)40,624) 2,313,022)2,313,022) 480 554)480 284 819 5,198 274,390 1,657}14,752 1864 89,164 Earnings (loss) before contributions and transfers Capital contributions Transfers in Transfers out Change in net assets tr Ending net assets $ 22,48i,417 6,411,431 18 26,075,259 6,107,173 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 169,083 S 528,220Changeinnetassetsofbusiness -type Activities 191,052 191,052 3,993,547 4,184,599 See accompanying notes to basic financial statements. 24 CITY F SE RD Fun .Propriet Statement Cash Flo You • i r,4 2010 4,661,724) 438179 90,060 31,672 82148 5,123,663} (1,241,107) Cash flows from noncapital financing activities Transfers in Enterprise Funds 70,567 372,829 Transfers out 1,041,742)88,291)336,046)75,826) Total Inte Nonoperating intergoverrunental revenues Major Funds Nonma,jor Enterprise S ice 1,449,186 Electric Water Hadm S C Funds Funds Enfa Cash flows from operating activities: financing activities i 041 742 8$ 291 1,415,5,259 88 977 Receipts from customers and users 8,51 1,609 1,020,692 2,880,597 303,312 1,027,867 13,744,077 Payments to suppliers 5,854,517)358,531)1,971,838)126,776)440,266)8,751,928)2,140) Payments to employees 1,023,148)260,041)816,920)71,574)363,785)2,535,468).335,164) Payments for interfund services used 815,283)224,914)345,527)87,213)161,667)1,634,604) Receipts from interfund charges 684,336)26,882) Acquisition of property, plant and 803,669 Net cash flows from operating equipment 4,522,683) activities 818,661 177,206 253,688 17,744 62,149 822,077 466,365 Cash flows from noncapital financing activities Transfers in 302,262 70,567 372,829 Transfers out 1,041,742)88,291)336,046)75,826)88,977)1,630,882) Nonoperating intergoverrunental revenues 1,449,186 1,449,186 Net cash flows from noncapital financing activities i 041 742 8$ 291 1,415,5,259 88 977 191,133 Cash flows from capital and related financing activities: Principal payments on long -term debt 315,000)360,000)55,094)1,333)731,427)178,033) Interest payments on long -term debt 333392)347,124)3,719)101)684,336)26,882) Acquisition of property, plant and equipment 4,522,683)445,247)957,581)80,714)6,006,225)1,083,321) Capital contributions received 260,457 7,068 1,041,692 1,309,217 Proceeds from sale of capital assets 5,000 5,000 47,129 Received on notes and loan receivable 10,000 10,000 Interhind loan payments 20,087)20,087) Commercial passenger vessel tax receipts 733,160 733,160 Increase in due to other hinds 233,894 27,141 261,035 Cash flows from investing activities: Investment income received Interfund loan receipts Net cash flows from investing activities Net increase (decrease) in cash and investments Beginning cash and investments 1 f: t. 1 statement of s; aCurrent Restricted assets 56,187 36,215 47,114 15,139 - 264 9,508 149,288 69,943 15039 61,392 71,326 36,215 47,114 C64 9 ,508 4,813,479) (313,049) 1,298,888 (18,918) (99,468) (3,946,026) (643,407) 6,526,463 1,707,435 3 63 986 18,918 994,927 12 1,729 1,775,920 i,7i2984 1,394,386 4,562,874 - 895,459 8,165,703 1,132,513 1,252,792 1,776,249 783,344 3,812,385 1,132,513 1,712,984 141,594 2,786,625 - 112,115 4,753,318 S 1,? 12,984 1,394,386 4,562 874 895,459 8,565,703 1 ,1321513 , See accompanying notes to basic financial statements. 25 CITY OF SEWARD Proprietary Funa Exhibit C -3. continued Enterprise Funds Total Major Funds Nonmajor Enterprise Service Elec tric Water ' t. or SNUC Funds Ids ELLnds S 549,221 (16,062) (67,950) (626,570) (212,743) (374,104) 101,888 1,438,032 204,604 1,086,891 622,334 290,246 3,642,107 339,354 8,425 5,928 14,353 - 40,624)2,793,576)2,834,200) - 13,482 8,776 28,958 1,660 8,712 61,588 - 34,678)1,566)2,574)38,818) - 273,776)12,630)8,927)8,099)13,021)316,453) - 141,018)217)141,235) - 703,393)10,274)1,412,967 13,208 16,860)695,648 - 2,317 2,068 2,563 56)1,464 8,356 - 22,760 2,507 6,238)6,925 25,954 25,123 6,857)8,645 1,788 - 15 230 77,051 15,272 77,093 - S 818 177,206 253,b88)17,749 62,149 822 466,365 Noncash capital and related financing activities - balance of $594,3446 in accounts payable at December t1 forgiven t capitalandreflectedas contributions 594,346 - See accompanying notes to basic financial statements. 26 CITY OF SEWARD Fiduciary Fund December 31, 2010 Cash and investments I 1 4 Nam- Accounts payable 0 Due to Teen Coundl rr 0 AMMIM sm NP: il 941 irl IIII itt I 46 Property taxes, sales taxes, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the cumnt fiscal period, Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue in the current period. Most other revenue items are considered to be measurable and available only when received by the government. Major Governmental Funds: The General Fund is the government's primary operating fund. It accounts for all financ resources the general government, except those required to reported in another fund. I repayment 11F.1 mmion in 37-s", MIMMT-141 rs n Lr term care facil4. Major Proprietary Funds: The Electric Enterprise Fund accounts for all activities related to the operation of the City's electric utility. X1111 I •11 ii I I I I I I I I I I I I I III I I !I I I I I I I III I III I I I I I . so The Seward Marine Industrial Center (SMIC) Enterprise Fund accounts for marine-related services on the cast side of Resurrection Bay. In addition, the City maintains and reports a single fiduciary fund. This fund records cash held in a fiduciary capacity on behalf of the local teen council. im PHOTF4_182 ",-Cmn As a general rule the effect of interfarid activity has been eliminated from the government-wide financial stakments. Exceptions to this general rule are allocated administration fees and charges between the enterprise funds and the various other funds and departments. Ehmination • these charges would distort the direct costs and program revenues reported for the various functions concemed. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capiW grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. In addition, general revenues include all taxes, investment income, and State of Alaska entitlement revenoes. 3=7F Tlaw extend the useful life • the asset are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructea Interest incurred during the construction phase of capital assets of busirless-type activities is included as part of the capitalized value of the assets constructed. M am Summary of Significant Accounting Policies, continued Capital Assets, continued Property, plant, and equipment of the City is depreciated using the straight-line method over the follovAng estimated useful lives: Buildings and improvements 20-40 ye IT Infrastructure 50 years System infrastructure Machinery and equipment 3-8 years-I w I Summary of Significant Accounting Policies, continued Property Taxes, continued At December 3 1, the delinquent real and personal property taxes not currently available are reflected as deferred revenues the General Fund. Accrued Annual Leave The City allows employees to accumulate earned but unused vacation and sick leave benefits. All accrued leave is accrued when incurred in the government-wide, proprietary filnd, and governmental fund financial statements. Accrued leave that is earned in the governmental funds is accounted for in the Compensated Annual Leave Internal Service Fund. Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for expenditures are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of fonruid budgetary integration in the General Fund during the year. However, it is the City's policy to stop issuing purchase ordrs in early December. As a result, there are no outstanding encumbrances at December 31, 201 Outstanding purchase orders, if any, at December 3 1, are cancelled andriew ones are issued in the subsequent year. Deferred Grant Revenue Amounts received from grantor agencies, which are restricted as to use and have not been expended for the intended use, are shown as deferred revenue. Pension Plans With the exception of certain Electric Fund employees, substantially all other employees of the City participate in the Public Employees' Retirement System (PERS) adniinistered by the State of Alaska. MI The AMLIP is an exterrial investment pool which is rated AA.Am for credit risk purposes. Alaska Statute 37.23 establishes regulatory oversight of the pool. The law sets forth numerous requirements regarding authorized investments and reporting. On a monthly basis the investments in the pool are reviewed for fair value by an independent pricing service. The values of investments in the AML pool are approximately equal to fair value. MI Cash and Investments, continued Reconciliation of Dmosit and Investment Balances statements as December 31, 2010: Wide Statement of Net Assets Cash and investments S 14,323,379 Restricted cash and investments 6,726 678 Fiduciary Fund Statement of Fiduciary Net Assets Totals 46,895 14,370,274 6,726,678 2JX96, 529- Restricted Cash and Investments The City maintains bond redemption and reserve accounts as required by bond covenants. Thcr balances at December 31, 2010 are as follows: General Fund (long-term care facility) 1,973,360 Electric Fund 677,911 Harbor Fund 859,348 capital projects. The total amount restricted cash and investments that has been designated for capital projects f6flows: Electric Fund 1,035,073 Water Fund 141,594 Wastewater Fund 112,115 Harbor Fund 1.927.277 M A HE ?MIMI= a IM-6IN IDUR01 Repurchase agreements 1 a MW Pooled investments Investment Maturities rin Years) Fair Less than I to 5 Over Value I _y!Lar years 5 years UMI IM M=:gem= Total investments $ gh KO 4) Capital Assets Capital asset activity for the year ended December 31, 2010 was as follol W M-f Buildings Balance Additions Deletions Balance 24,196,171 January 1,and eclass-and eclass-December 31, 1,522,890 2010 ifications ifications 2010 Governmental activities Total capital assets being Capital assets not being depreciated: depreciated, net 78 121,676 2,938,135 1,392 75,182,14 Land and land improvements 5,432,289 5,432,289 Construction in progress 3,890,320 2,087,515 21.8,007 5,759,828 Total assets not being depreciated 9,322,609 2,087,515 2.1.8,007 11,192,117 WM-f Buildings 79,817,699 74,341 79,892,040 Improvements other than buildings 24,196,171 66,393 24,262,564 Machinery and equipment 15,786,549 1,522,890 560,60 16,748,830 Total assets being depreciated IM800,419 1,663,624 560,609 120,903,434 reMe M, Buildings 19,441,089 2,571,273 22,012,362 Improvements other than buildings 13,796,843 852,552 -14,649,395 Machinery and equipment 84-40811 1,177,934 559,217 9,059,528 Total accumulated depreciation 41,678,743 4,601,759 559,217 45 721,285 Total capital assets being depreciated, net 78 121,676 2,938,135 1,392 75,182,14 Governmental activity capital assets, net 87.444.285 8 74a2 38 I i1of ' I I a Capital Assets, continued The ending balances include $5,311,136 and $2,448,035 of equipment cost, and ac-cumulateif depreciation, respectively, related to the Motor Pool Internal Service Fund. Additions Deletions Balance andReclass-andRec-1ass- December3l, ifications ifications 2010 Afflom Capital assets being depreciated: Buildings 4,878,183 Improvements other than buildings 115,669,512 Machinery and equipment 11385,268 Total assets being depreciated 131,932,963 5,136,210 377,990 13,435,404 5,136,210 377,990 30,919,169 3,237,290 4,878,183 737,456 116,406,968 510,548 17,498 11878,318 1,248,004 17,498 133,163,469 r# "# Buildings 4,157,832 81,499 4,239,331 Improvements other than buildings 64,175,189 3,237,290 67412,479 Machinery and equipment 6,928,892 323,318 17,498 7234,712 Total accumulated depreciation 75,261,913 3,642,107 17.498 78,886,522 Total capital assets being depreciat4 net 56,671,050 (2.394.103 54,276,9 kilt Depreciation Internal Excluding Service Internal Fund Total Service Fund Allocation Dpreciatio Governmental activities General government 146,495 102,194 248,689 Public safety 142,756 57,925 200,681 Public works 101,670 157,877 259,547 Parks and recreation 93,453 21,357 114,810 Library 32,775 32,775 Healthcare facilities 2,239,954 2 Sea Life Center 1 505,303 Total governmental activities 339,353 kilt Mwims"'; i Capital Assets, continued Due to the General Fund from. Depreciation Flood 'ligation Capital Project Fund to cover Excluding short-term capital advances Internal Nonmajor governmental Amds to cover short-term Service Fund BUse ness-lype activities 549,160 Electric 1,438,032 Water 204,604 Wastewater 276,608 Harbor 1,086,891 S 622,334 Parking 13,638 Total business-type activities Jk2 aU 5) Interfund Receivables, Payables, and Transfers A schedule of interfund balances and transfers as of and for the yeax ended December 31, 2010, follows: Due from other funds. Due to the General Fund from. Flood 'ligation Capital Project Fund to cover short-term capital advances 347,888 Nonmajor governmental Amds to cover short-term operating and capital advances 549,160 Seward Marine Industrial Center Enterprise Fund to cover short-term operating advances 27,141 Electric Enterprise Fund to cover short-term operating advances 894233 Total due from other funds Transfers. From General Fund to: S Enterprise Fund for operating costs 70,567 Harbor Enterprise Fund for capital costs 302,262 Nonmajor governmental fands for debt service costs 957,688 Nonmajorr governmental funds for capital costs 29,759 Nom govermuental fLmds for operating costs 20,644 Total transfers from General Fund 1,380,920 From nortmaj • governmental funds to General Fund for operating costs 134,704 Nonmajor govemmental. funds for capital costs 18,764 Total transfers from nonmajor governmental funds 153,468 M Interfund Receivables, Payables, and Transfers, continued Transfers, continued From Electric Enterprise Fund to General Fund for payment in lieu • taxes and other costs $ 1,G41,742 From Water Enterprise Fund to General Fund for payment in lieu of taxes and other costs 88,291 From Wastewater Enterprise Fund to General Fund for payment in lieu • taxes and other costs 73613 From Harbor Enterprise Fund to General Fund for payment in lieu • taxes and other costs 336,046 From S Enterprise Fund to General Fund for payment in lieu of taxes and other costs 75 From Parking Revenue Enterprise Fund to General Fund for payment in lieu of taxes 15,364 Total transfers to other funds $ 6) Long -Term Debt The following is a summary of long-term debt transactions of the City for they ended December 31, 201 Balance January 1, 2010 Additions Retired Balance Due December 3 1, Within 2010 One Year nzl 11 • I M P1 - I •: a I - a Long -Ter w Debt, continued Balance Balance Due January 1,December 31,Within 2010 Additions Retired 2010 One Year ye men aefivities, continued General obligation bonds, continued: 1,086,018 2003 refunding strtets and sidewalks bonds, due in final install- ment of $78,317, plus interest at 3.5% on December 1, 2011 S 151,415 73,098 78,317 78,317 175,438 2003 refunding senior center bonds, due in final installment of 12,653, plus interest at 3.5% on December 1, 2011 24,460 11,807 12,653 12,653 Capital leases: Fire equipment capital lease obligation, due in final installment of $9,690, including interest at 3.81 % on May 1, 2011 27 18,480 9,507 9,507 Total governmental activities long-term liabilities $31,489.18 30,497,888 finmimm- Nus unamortized bond premium Liqw'dation of the accrued annual leave is made by the Compensated Annual Leave Internal Service Fund. AU other debt service payments above are made by the General Fund directly or by transfers from the General Fund to the Debt Service Fund. IN MY OF SEWARD Notes to Basic Finsocial Statements, continued Lon -Term DebLt continued Balance Balance Due January 1, December 31, Within 2010 Additions Retired 2010 One Year Businem-typj activities General obligation bonds — 818,544 2003 refunding S bonds, due in final installment of $59,030, plus interest at 3.5% on December 1, 2011 114,124 55,094 59,030 59,030 Revenue bonds: 6,000,000 2008 Electric revenue bonds, due in annual installments of 100,000 to $375,000, plus interest at 4.0% to 6.0% through June 1, 2038 5,910,000 95,000 5,815,000 100,000 4,500,000 2006 harbor revenue bonds, due in annual installments of 170,000 to $330,000, plus interest at 4.0% to 6.0% through June 1, 2026 4,070,000 160,000 3,910,000 170,000 3,000,000 2000 harbor revenue bonds, due in final installment of $140,000, plus interest at 5.5% on October 1, 2011 275,000 135,000 140,000 140,000 1,965,000 2007 refunding harbor revenue bonds, due in annual insullments of 10,000 to $235,000, plus interest at 4. 0% to S. 0% through June 1, 2021 1,950,000 5,000 1,945,000 10,000 2,290,000 2005 refunding electric revenue bonds, due in annual installments of 230,000 to $275,000, plus interest at 3.75% to 5.0% through June 1, 2015 1,465,000 220,000 1,245,000 230,000 1,500,000 2005 harbor revenue bonds, due in annual installments of $65,000 to $110,000, plus interest at 3.75% to 5.CP/o through June 1, 2025 1,330,000 60,000 1,270,000 65,000 Notes payable: 26,231 sewer note payable to State of Alaska Department of Environmental Conservation, due in annual Installments of $1,333, plus Interest at 1.5% through July 15, 2014 6,663 1,333 5,330 1,333 IN Ipt MI payable to State of Alaska Depaitment of Environmental Conservation, plus interest at 1.5%, (not yet in repayment status) 0 Balance Due Decemb« Within Additions Retired 2010 One Year 233,515 233,515 115,020 2,652,849 - 2,652,849 212,957 38,622 - 38,622 Total business-typ>c »» ». long-term liabilities 18,158,960 210,380 JU-;R 17,492,109 Plus unamortized bond premium M_ II I 1 #< 4< »0 <k< »# « . 20o11rly MOWNM $IQ I I WIIVIIR I ONWO I I MOO.M. 11 0=2 Year Ending Governmental Activities — December 3 1,Principa Interest Total 2011 875,970 67,109 943,079 2012 840,000 38,500 878,500 2013 71 0.00 12,425 722,425 Principal Interest Total 59,030 2,066 61,096 I - } 0 1 " a M OWS OM iVA —XV #7 r ... 1 1.1 M41 Aut horized i U nissued 1' O bBeation Bonds During Ali voters approved the issuance of milli obligat bonds fb construction of a library/museum. However, none of the bonds have been issued. EndingYear r r :.Business-typ D ecember 31 Principa T T P rincipal 104 T 2011 ta+(•1,275,662 1,955,662 181, 889 6,737 2012 710,000 1,240,913 1,950,913 745,000 621,676 1,366,676 4 1,2 1, 954 , 413 7 80 , 00 0 586 , 952 701,511 785, 000 1 1 11i 549 1 f 1 8 2016-2020 4,730,000 5,028,406 9,758,406 3,330,000 2,109,089 5,439,089 2021-2025 5,815,000 3,903,815 9,718,815 3,095,000 1,365,829 4,460,829 2026-2030 7,345,000 2,327,278 9,672,278 1,460,000 816,695 2,276,695 2031-2035 5,360,000 418,965 5,778,965 1,450,000 477,749 1,927,749 U # ME s i i 1 i i Year En ding n' yr- Activities - December 31 Pr T 2011 0 104 433 2 17 13,879 204,915 2013 181, 889 6,737 204,915 2014 124,012 33,019 157,031 0'J: '.i'.i:: 2021-2025 701,511 76,884 778,395 2026-2029 600-047 22,67 622,71 1r ai : S Year Ending Governmental Activities — De Pr T 194 , 014 214 , 605 2012 191,036 13,879 204,915 2013 198,178 6,737 204,915 2 .. r..31,502 260 2.. i ,• on a a • M 11 1 , 7) Revenue Bond Requirements Certain covenants of the revenue bonds require establishment of bond redemption and reserve accounts. The balances are reflected as restricted cash and investments at December 31, 2010 as follows: AMOM" The Electric and Harbor revenue bonds also require that rates be maintained at a level that will produce net revenues after certain adjustments, equal to 1.3 and 1.2, respectively, times th,-; amount required each year to pay the principal and interest. The City met these revenuv requirements for both bonds in 2010. The bond coverage calculations are as follows: wnmqwmmmg t R Total revenues, excluding grants $ 8,903,337 Total operating expenses, excluding depreciation and payment in lieu of taxes 6,854,897 Available for debt service Principal $315,000 Interest 353,586 Total debt service payments $ Debt coverage 3.06 11 a - . Total revenues, excluding grants $2,850,942 Total operating expenses excluding depreciation and payment in lieu of taxes 1,784,887 Available for debt service $ 1,066,055 Principal $360,000 Interest 337,990 Total debt service payments Debt coverage 1.53 M1. 1111IFF! !I! r I The following is a schedule of future minimum lease payments under the capital leases and the present value • the net minimum lease payments at December 31, 2010: M Internal Year Ending General Service December 31,Fund Fund 2011 9,690 204,915 2012 204,915 2013 204,915 2014 31,763 Total minimum lease payments 9,690 646,508 Less interest portion 183 41 285 Present value of future minimum lease payments 9,507 605,223 Less current portion e.507)184 507 Long-term portion 420 1 M The Plan is included in a comprehensive annual financial report that includes financial statements and other required supplemental information. The report is available at the following address: Department of Administration P.O. Box 110203 Juneau, Alaska 99811-0203 Funding Policy Regular employees are required to contribute 6.75% of their annual covered salary (2.41% for pension and 4.34% for healthcare). Police and firefighters are required to contribute 7.5% of their annual covered salary (2.67% for pension and 4.83% for healthcare). The funding policy provides for periodic contributions based on actuarially determined rates that, expressed as a percentage of annual covered payroll, are sufficient to accumulate sufficient assets to pay both pension and postemployment healthcare benefits when due. ff-I MMJ,OE3Ew=- fg%*,zv C-mployer Actuarial GASB45 Rate Rate Rate* JOLIM to June Pension 8.16%10.25%10.72% Posternployment healthcare 13.84%17.40%53.96% Total contribution rate 22.0 641r/O C-mployer Actuarial GASB45 The GASB 45 rate uses a 4.5% OE B discount rate and disregards all future Medicare Part D payments. Projected benefits for financial reporting purposes do not incorporate any potential effects of legal contractual funding limitations. MI Rate Rate Rate* July to December Pension 7.85%9.98%13,49% Postemployment healthcare 14.15%17.98%55.87% To contribution rate 22—U%Z:2_69-3L The GASB 45 rate uses a 4.5% OE B discount rate and disregards all future Medicare Part D payments. Projected benefits for financial reporting purposes do not incorporate any potential effects of legal contractual funding limitations. MI Health Reimbursement Arrangement — AS 39.30.370 requires that the employer contribute "an amount equal to tbree percent • the employer's average annual employee compensation." For actual remittance, this amount is calculated as a flat rate for each full time • pal employes per pay period. w IMMMMIZIA ri Defted Contribution Pension Plan, crte. tirtued Employees are immediately vested in their own contributions, and after two years of service, vest 25% per year in employer contributions. The City and employee contributions to PERS including the BRA contribution for the year ended December 31, 2010 were $101,468 and 79,555, respectively. 13) Risk Management The City faces a considerable number of -risks of loss, including (a) damage to and loss property and contents, (b) employee torts, (c) professional liability i.e., errors and omission d) envirorunenW damage, (e) workers' compensation; i.e., employee injuries, and (f) medicIinsurancecosts employees. W The JIA provides loss control services and conducts periodic inspections to ensure safe operations. The City has utilized an established safety committee to review and recommend safety policies and procedures for all departments. The City Council designates a portion of the General Fund balance to meet potential losses not covered by insurance and insurance deductibles. The City also participates in the Alaska Public Utilities Insurance Trust, which provides insurance coverage for employee health benefits. The Plan is a public entity risk pool in which risks are shared among the members. Stop loss insurance limits participants' liability fan cridividual and aggregate claims. There was no significant reduction in the City's major categories • risk insurance coverage from the prior year, and the amount • settlements for the past three fiscal years did not materially exceed the City's insurance coverage. M 15) Commitments and Conftizencies Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the state and federal government. Any disallowed claims, including any amount already collected, could become a liability of the applicable funds. W CITY OF SEWARD Notes to Basic Financial Statements, continued Commitments and Contingencies, continued The City of Seward is the owner of the Alaska Sealife Center ( "Center "), which is operated on the City's behalf by the Seward Association for the Advancement of Marine Science SAAMS "). The City is obligated to abide by provisions of the Cooperative Agreement Agreement ") between the City and the State of Alaska Department of Fish and Game, which served as a significant funding source for the construction of the Center. The City has passed most of its obligations for operating the Center on to SAAMS through a management and operating agreement ( "Operating Agreement "), but the City ultimately remains responsible to ensure that provisions of the Agreement with the State are met. The Operating Agreement requires, in part, that SAAMS maintain sufficient termination fund reserves to enable the City to operate the facility for up to one full year in the event SAAMS is unable to meet its obligations under the Operating Agreement. The estimated costs of operating the Center for a full year are not easily measured based on imprecise definitions of the requirements, but could approach $3 million per year. The Operating Agreement does not require SAAMS to maintain that level of reserves, and to the extent their termination fund reserve levels are inadequate, the City would be expected to cover any shortfall. The City does not currently have adequate reserves in its General Fund to cover this potential shortfall. Various other claims and lawsuits against the city are pending, but are either covered by insurance or are the type which are normal and reasonable in view of the City's operations. City management believes the total amount of the liability, if any, which may arise from such claims and lawsuits beyond that which is covered by insurance would not have a material effect on the City's financial condition or its ability to carry on its activities as now conducted. 16) Fund Deficits The following funds had a deficit in fund balance at December 31, 2010. The deficits will be eliminated in the future with transfers from other funds. Flood Mitigation Capital Project Fund $ 25,019 Library /Museum Capital Project Fund 7,953 Fish Ditch Restoration Special Revenue Fund 1,600 17) New Accounting Pronouncements The Governmental Accounting Standards Board has passed several new accounting standards with upcoming implementation dates covering several topics as follows: GASB 54 — Fund Balance Reporting and Governmental Fund Type Definitions GASB 57 — OPEB Measurements by Agent Employers and Agent Multiple - Employer Plans GASB 58 — Accounting and Financial Reporting for Chapter 9 Bankruptcies GASB 59 — Financial Instruments Omnibus 53 CITY OF SEWARD Notes to Basic Financial Statements, continued New Accounting Pronouncements, continued Of these statements, GASB 54 — Fund Balance Reporting and Governmental Fund Type Definitions will have a significant impact on the City's future financial reporting presentation. This statement will recategorize all existing fund balance classifications into five new categories: Nonspendable Restricted Committed Assigned Unassigned The statement will require an analysis of all funds of the City to determine ongoing compliance with fund type categories as defined in the statement. GASB Statement 54 will be in effect for the City's financial statements for the year ended December 31, 2011. Statements 57 through 59 are not expected to have any material impact on the City's financial statements. Will M Cmining 13 a) ance Seet December 31, 20101obh Cash and investment Grants -receivable Other receivables 1 items Special Debt Capital Revenue Servic Proj,ects iD-W- 68,008 546,695 274,173 888,876 355,173 769,593 1,124,766 1,914 1,914 i 1 11 MEMMIMME 114,777 149,528 264,305 938 5,341 6,279 234,011 663,037 897 349,726 817,906 1 546,695 546,695 W. Ri •« i ii, Other fmancingfinancing sources (uses): Transfers in Transfers out Net other financing sources (uses) i "' ' i R i. . i i i . '.. « Special Debt Capital Revenue Service Pro ects Tot 489,117 1,508,639 1,997,756 35,847 186,338 222,185 3 35 3,455 524,964 3,420 1,695,012 2,223,396 145,094 7,993 153,087 1,097,039 1,097,039 246,972 30,000 276,972 163,503 9,798 173,301 15,000 622,490 637,490 30,076 30,076 735,000 735,000 86,724 86,724 570,569 821,724 1,797,396 3 i i i • i\ • 20,644 957,688 48,523 1,026,855 i . 20,644 822 ; 1 00 ,330 542 30 8 ,4 85 950, 83M 75,369 546,695 235,860 857,92M M CITY OF R Nonmaj or Enterprise Fund 1. r . R oncurrent assets: T Restricted cash and investments Capital assets, net of accumulated depreciation MUM 4" r " i # it N otes Accrued annual leave payable Total noncurrent liabilifies Net assets. Invested in capital assets, net of related debt Unrestricted Total net assets h ' . ! • 'iRf ilfI 396,006 387,338 783,344 74,030 74,030 20,000 20,000 3,331 3,331 486,705 387,338 874,043 122,492 122 112,115 112,115 5,284,350 115,744 5,400,094 5,396,465 115,744 5,512,209 8,906 95 9,001 7,836 7,836 3,932 3,932 3,841 3,841 116,353 116,353 140,868 95 140,963 15,624 15,624 122,492 122 138,116 138,116 5, 045 , 505 a 5,161 558,6 5,604,186 502,987 6,107,173 yr o f • I R. a i y» 4 yj 0500« » E a «?y» #« Change in net assets d44!««»««< 22£366 110,520 3808I¥ 391 , 463 31 423 1 38 , 716 161 , 667 2 13 , 638 2*0,24 1 179 1 8,712 8,712 6,021 3 9 3,468)3,468 11,265 3,487 14,752 2 |/ |2} }2 :» :mm y t 0 CITY OF i or Enterprise Funds flows Year Ended December 31, 2010 Cash r m noncapital transfers investment i ! 1 • • Reconciliation of and investments to statement of Current assets Restricted a W Pa i a 4 253,265)110,520) a 161 , 667) 8, 974 62 r r o • 1,333) - (1,333) 101) - (101) 58,881 21,833 80,714 6,021 3,487 • 508,121 3 895,459 396,006 4, 112,115 - 112,115 C + 89r zu CITY OF "` Nonmajor Enterpnise Funds Q of • continua at, 276,608 13,638 290,246 8,712 8,712 2,574)2,574) 13,021)13,021) 798 17,658) (16,860) 1,464 1,464 6,925 6,925 53,175 8,974 62,149 M. CITY OF `i I nternal C ombining o Dece i 0 Compensated Motor Annual Assets Pool Leave N loans , Interfund port Capital of depreciatio Tot no icurrent assets IM 63,132 63,13 64 4 6 i ii 1,130,899 1,130,899 2, 863 , 101 2 3, 994 , 000 3 7,300 - 7,300 Accrued C apit2d lease obligatio s, - Net assets: Invested in capital assets, net of related debt Unrestricted Total net assets 1 09 , 056 109 J 507 - 184 1 91 , 807 i• i 56 300 348,132 348,132 420,717 - 420,717 2,257,877 2 2 5 8 1,926,722 A7,9 4,184,599 1 1. i : :> J' R i fl CITY OF SEWARD Internal Service Funds Combining Statement of Revenues, Exl>enses and Change in Net Assets Year Ended December 31, 2010 Compensated Motor P ool Leave i- rte 443 360 803 i its s s Change in net assets 2,140 2,140 339,354 339,354 341,494 360,287 701,781 101,888 101,888 47,129 47,129 66,670 66,670 24,635 24,635 89,164 89,164 191,052 191,052 f 3, 99 3, 547 4,184,599 4,184,599 ice] CITY OF SEWARD Internal Service Funds Combining, Statement of Cash Flows Year Ended December 31, 201 Compensawi Motor Annual Pool Leave Cash flows from operating activities: Receipts from interfund charges Payments to suppliers Payments to employees Net cash flows from operating activities Cash flows from investing activities: Interfund loan receipts Investment income received Net cash flows from investing activities M 1 4 91 # I - . ti IM 443,382 360,287 803,669 2,140) - (2,140) 335,164 ) 335,164 441,242 25,123 466,365 178,033) - (178,033) 26,882) - (26,882) 1,083,321) - (1,083,321) 47,129 - 47,129 K1,241,107 (1,241,10 61,392 61,392 69,943 69,943 131,335 131,335 Mur - MZ4 %M 101,888 339,354 - 25,123 441,242 25,123 466,365 El The General Fund is established to account for the -revenues and expenditures necessary to cany out basic governmental activities of the City such as fire and police protection, public works, recreation, planning, administrative services, etc, Appropriations are made from the GenerA Fund annually. r-R 1 L OW iy•' A i : 1 it IMUM 12,333 371 11,962 4,037 12,441 15,760 441,256 485,456 Accounts Less allowance for doubtful accounts Net accounts 13,857 492) 13,365 3,340 11,507 19,688 459,851 507,751 86 206 84 i +, Grants and shared revenues 2,190 1,100 Accrued interest 41,616 69,755 Note receivable - PSMC 180,822 192,000 Total receivables 794 502 973 Prepaid items 395,196 456,974 Inventory 8,930 8,055 Due from other funds 1,158,083 209,519 Restricted cash and investments - bond reserve 1,973,360 1,973,360 1'MI ,EMMU #' M. IM-11 i • • 1 11 i f. CITY OF ! R . General 11 ti 1 S heet 1 ' 1 1 i' M samomos ....:1 417,546 391,449 157,827 140,246 85,736 65,427 24,064 34,330 211,257 73,379 75,299 78,262 3.407 3,464 4 4,243,161 i. : R 1' . , i m 20r = = Building permits 45,000 2010 7,458) 2009 Taxi permits 1,300 835 Vaiiance 1,415 Department of Motor Vehicles commissions 93,921 86,727 Positive 86,436 Animal control licenses Budget Acwal fNegativ e ai Revenues: 18,500 17,310 1,190)23,400 Taxes: 4,300 5 1,459 3,980 Sales 3,806,738 3,742,751 63,987)3,585,304 Property 993,000 954,687 38,313)975,687 Hotel /motel room 302,600 328,396 25,796 285,313 Payments in lieu of taxes 75,000 75,317 317 84,922 Penalty and interest 1,500 1,003 497 1 Total taxes 5,178,838 5,102,154 76 4,932,555 20r = = Building permits 45,000 37,542 7,458)99,000 Taxi permits 1,300 835 465)1,415 Department of Motor Vehicles commissions 93,921 86,727 7,194)86,436 Animal control licenses 750 775 25 735 Business licenses 18,500 17,310 1,190)23,400 Miscellaneous 4,300 5 1,459 3,980 Total licenses and permits 163,771 148 948 14,82 214,966 Jail contract 450,000 449,472 528)449,472 Dispatch contracts 96,500 98,180 1,680 97,460 Raw fish tax 360,000 298,316 61,684)417,356 Shared fisheries and landing tax 5,000 3,946 1,054)4,049 Liquor tax 20,000 15,400 4,600)19,750 Library grant 8,233 6,300 1,933)6,350 Revenue sharing 229,000 226,846 2,154)229,606 PS relief 206,188 209,145 2,957 332,856 Other grants 16 150 104 87,896 19,866 Total intergovernmental 1 391 071 1,411,651 20,580 1,576,765 CIW OF SEWARD General Fund Schedule of Revenues, Expenditures and Change in Fund Balance - Budet and Actual, continued Other. Sale of land, equipment and gravel Refuse contract Library revenues Other 4 !: > 17,000 10,210 (6,790 11,836 196,000 122,710 (73,290 50,311 2010 347,281 2009 12,629 6,758 Variance 119,517 36,267 21,395 Positive 46,401 Bud et Actual LNegattvo Actual 1,712,485 2,070,637 358,152 1,739,057 124,478 144,552 20,074 157,821 15,200 13,688 1,512)16,840 15,000 2,278 12,722)2,896 569,394 608,361 38,967 622,067 12,500 13,794 1,294 14,799 2,449,057 2,853,310 404 2,553,480 17,000 10,210 (6,790 11,836 196,000 122,710 (73,290 50,311 347,281 347,281 1,622,052 12,629 6,758 83,250 119,517 36,267 21,395 63,000 46,401 16,599)60,558 16,990 19,450 19,191 259 20,089 165,700 185,109 19,409 119,032 Total revenues 9,561,437 10,181,373 619,936 11,080,997 35,965 43,115 7,150)23,395 12,629 6,758 5,871 12,846 62,370 65,873 3,503)60,586 151,000 142,082 8,918 116,971 4,300 2,386 1,914 3,076 18,000 14,056 3,944 9,492 154,000 143,677 10,323 152,673 75,650 74,611 1,039 68,722 513,914 492,558 21,356 447,761 69 CITY OF SEWARD General Fund Schedule of Revenues, Expenditures and Change in Fund Balance - udet and Actual, continued Salaries 140,135 2010 6,842 2009 Employee benefits 86,137 84,835 Variance 83,588 Purchased services 15,000 10,347 Positive 10,242 General and admin.'s five Budget A Negative)Aggg 1 Expenditures, continued: 260,322 244,628 15,694 238,210 General government continued: 11,380 City manager: Salaries S 188,173 181,698 6,475 262,182 Employee b en efits 90,273 100,595 10,322)135,661 Purchased services 12,400 7,961 4,439 10,303 Supplies and maintenance 12,025 10,908 1,117 8,217 General and administrative 58,428 54,438 3,990 28,132 Total city manager 361,299 355,600 5,699 444,495 Salaries 140,135 133,293 6,842 128,897 Employee benefits 86,137 84,835 1,302 83,588 Purchased services 15,000 10,347 4,653 10,242 General and admin.'s five 19.050 16.153 2,897 15,483 Total city clerk 260,322 244,628 15,694 238,210 5= Salaries 134,517 127,766 6,751 130,832 Employee benefits 66,568 68,309 1,741)67,991 Purchased services 11,200 3,125 8,075 12,472 Supplies and maintenance 33,000 41,882 8,882)28,576 General and administrative 13,000 8,184 4,816 8,257 Capital outlay 11,380 Total management information systems 258,285 249,266 9,019 259,508 Finance. Salaries 373,608 338,330 35,278 340,609 Employee benefits 206,052 200,312 5,740 206,060 urcbased services 25,500 33,587 8,087)18,690 Supplies and maintenance 53,500 54,152 652)51,568 General and adminis tive 15,350 19,106 3,756)18,213 Capital outlay 8.000 8,000 11,798 Total finance 682,010 645,487 36,523 646,938 f CITY OF S General Fund S chedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual, continued General Purchased l hewn maintenance Gen Ii administrativi I 985,559 2010 46,610 2009 570,609 572,266 Variance 538,733 62,324 61,343 Positive 116,582 Budget Ac=l e ativ Actual 206,173 135,363 70,810 189,884 111,122 87,702 23,420 109,883 67,672 62,310 5,362 69,054 10,500 6,972 3,528 6,002 6,850 8,194 1,344)6,845 5,232 402,317 300,541 101,776 386,900 12,450 6,834 5,616 37,062 23,350 20,751 2,599 18,308 66,100 63,629 2,471 40,628 101,900 91,214 10,686 95,998 50,000 50,000 50,000 5,000 5,000 4,800 181,002 181,002 171,581 3,000 3,000 86,340 239,002 239,002 312,721 2,819,049 2,618,296 200,753 2,832,531 985,559 938,949 46,610 892,678 570,609 572,266 1,657)538,733 62,324 61,343 981 116,582 54,730 57,594 2,864)57,097 a CITY OF SIEWARD General Fund Schedule of Revenues, Expendituns and Change in Fund Balance - Budget and Actual, continued MW Salaries 2010 257,026 2009 253,731 Employee benefits Variance 173,957 570)171,608 Posit've 52,300 48,617 B.Udge Actual Ne ativ al Expenditures, continue& 9,511 1,989 12,803 Public safety, continued: 101,772 97,983 3,789 Police, continued: Total jail.605,445 587,094 General and administrative 61,780 55,843 5,937 51,216 Capital outlay 11,379 Total police 1,735,002 1,685,995 49,007 1,667,685 MW Salaries 266,486 257,026 9,460 253,731 Employee benefits 173,387 173,957 570)171,608 Purchased services 52,300 48,617 3,683 53,103 Supplies and maintenance 11,500 9,511 1,989 12,803 General and administrative 101,772 97,983 3,789 90,520 Total jail.605,445 587,094 18,351 581,765 Total fire Animal control: 520,000 50,254 513814 Purchased services 77,410 78,160 750)78,189 Supplies and maintenance 2,000 80 1,920 755 Total animal control 79,410 78,240 1,170 78,944 IM Salaries 171,192 162,186 9,006 172,486 Employee benefits 101,847 108,949 7,102)110,271 Purchased services 234,277 208,393 25,884 169,669 Supplies and maintenance 45,620 30,153 15,467 38,940 General and administrative 17,318 10,319 6,999 17,656 Capital outlay 4,792 Total fire 570,254 520,000 50,254 513814 6,900 5,000 6,200 4,788 16,020 16,417 26,175 25,556 55,295 51,761 rr im CITY OF SEWARD General. Fund Schedule of Revenues, Expenditures and Chaogein Fund Balance - Budget and ActuaJ, continued K M Variance Positive Bud et Actual e g five Actual fa S 1,100 852 248 922 1,950 502 1,448 1,071 4,276 407 3,869 1,658 7,326 1,761 5,565 3,651 66,132 59,978 6,154 48,961 37,054 32,807 4,247 29,907 5,500 5,162 338 12,114 6,000 4,551 1,449 4,018 6,150 3,316 2,834 2,083 120,836 105,814 15,022 97,083 3,173,568 3,030,665 142,903 3,035,499 236,989 232,950 4,039 215,138 126,108 124,517 1,591 113,281 574,491 358,609 215,882 339,686 233,100 172,512 60,588 224,986 9,850 3,697 6,153 6,439 5,000 5,000 17,802 1,180,538 897,285 283,253 917,332 U, CITY SEWARD General Fund Schedule of Revenues, Expenditures and Change in Fund Balance - udet and Actual, continued Salaries 81,158 2010 7,795 2009 Employee benefits 60,891 60,058 Variance 62,304 Purchased services 106,600 103,518 Positive 100,061 Supplies and maintenance Bud et Ac e gative Actual Expenditures, continued. 1,450 620 830 1,646 Public works, continued: 297,349 253,790 43,559 313,220 City shop: 1,219,288 Total public works 1,858,078 1,609,737 Salaries S 144,064 175,218 31,154)131,784 Employee benefits 84,927 130,463 45,536)104,193 Purchased services 74,200 64,142 10,058 62,744 Supplies and maintenance 61,750 53,488 8,262 38,869 General and admi tive 15,250 14,866 384 8,841 Capital outlay 20,485 20,485 Total city shop 380,191 458,662 L78 , 471 )346,431 Salaries 81,158 73,363 7,795 75,392 Employee benefits 60,891 60,058 833 62,304 Purchased services 106,600 103,518 3,082 100,061 Supplies and maintenance 47,250 16,231 31,019 73,817 General and administrative 1,450 620 830 1,646 Total municipal building 297,349 253,790 43,559 313,220 Total parks and recreation 1,219,288 Total public works 1,858,078 1,609,737 248,341 1,576,983 12 - MM . , Salaries 575,218 586,368 11,150)571,971 Employee benefits 262,335 275,568 13,233)276,122 Purchased services 214,100 211,613 2,487 233,1 Supplies and maintenance 105,155 93,863 11,292 97,594 General and administrative 33,480 23,610 9,870 26,367 Capital outlay 29,000 28,160 840 10,224 Total parks and recreation 1,219,288 1,219,182 106 1,215 Salaries 181,453 171,546 9,907 170,409 Employee benefits 111,313 111,524 211)110,203 Purchased s 43,700 37,817 5,883 42,347 Supplies and maintenance 44,000 45,681 1,681)67,304 General and administrative 24,100 22,739 1,361 31,754 Total libr 404,566 389,307 15,259 422,017 m F: Y arRi `E CITY OF SEWARD General Fund cbedule of Revenues, Expenditures and Change in Fund Balance - Buget and Actual, contin a a M Other financing sources (uses): Transfers in Transfers out Net other financing sources (uses) 7 599 , 093 i 4 •: 1,21 2010 1 2009 Variance 670,064 446,451 1,090, 983 Positive i . Budget e ativ Actual 159,828 103,386 56,442 102,695 647,703 529,778 117,925 596,907 84,892 81,929 2,963 88,130 892,423 715,093 177,330 787,732 7 599 , 093 i 4 •: 1,21 5,766,871 4,109,627 6,750,630 5,766,871 m 1 285,398 394,666 670,064 446,451 1,090, 983 a i . 5,766,871 4,109,627 6,750,630 5,766,871 m in Special Revenue Funds are used to account for expenditures associated with dedicaled or restricted revenue sources. Litter Control (ALPAR) — To account for the cost of a City—administered fitter control program. The program employs local youth and is financed by grants from the non- profit Alaskans for Litter Prevention and Recycling and the Kenai Peninsula Borough. Two Lakes Park — To account for acquisition of land, survey and development of the park area, including site preparation, picnic tables, and other improvements. Miscellaneous Pass-Through Grants — To account for grants that are passed through to other agencies. Cruise Ship Transportation Grant — To account for a transportation grant to assist cruise ship passengers. Natural Disasters — To account for the costs associated with the October 2006 flood disaster. Fire Response — The purpose of this fund is to account fbr expenditures of the Fire Department that were incurred while responding to a fire located in the Forest Services jurisdiction and the related receivables resulting from the billings to Forest Services. M 6190 V , 1-1 162 F "I . 1 4 Combining Balance Sheet December 31, 2010 MMI-M Total liabilities and fund balances S 588 - 21520 113 53,112 235,170 6,358 11,788 _1 425,095 IN Parks and General Public Public Recreation Government Works LibM Safe!X_ Two Miscellaneous Fish Utter Lakes Pass Through Computer Natural Ditch Fire Assas Control Park Grants Network Disastters Restoration ons Total Cash and invements S 588 2,520 -53,112 11,788 68,008 Grants receivable 113,645 235,170 6,358 355,173 Other receivables 1,914 1,914 Total assets S 588 2,520 113,645 53,112 235,170 6 11,788 1,914 425,095 MMI-M Total liabilities and fund balances S 588 - 21520 113 53,112 235,170 6,358 11,788 _1 425,095 IN a I LLn q I q 0 o ° CD -,:I- a O ba C v, G E-° ti3 C v a G m I I r_4) W l(}In i O k O wdl _ O G Ne r. C a N ef' O bU) U) W d 79 r- N O O ell 1 rn N B D I 1 V1 V) X0 Q cq t3 N 00 r1 V) a I I e atnV) G 9 N U Qv O 4 O C)CIO d u V M C 1 UAl H6}a O Pk 45 u, O L)dV C p Lp a 00 lc 00zLnV) O to s I I I m 1 1 I m I 1 I o O,ea M •a a M rs W) I a 861 an 1 d a I O a I 1 I 1 e^ . a o ICT clq 1 / ° 501000wqhN' VISA 1 i th O ' V) IT M M LLn q I q 0 o ° CD -,:I- a O ba C v, G ti3 C 7 1 yg Nc r_4) W l(}In i O k O wdl _ O G Ne r. C a N ef'd bU) U) W C-k 79 r- N O 1 rn N B D I 1 V1 V) Q1 O cq V) a I I e atnV) I I m 1 1 I m I 1 I o O,ea M •a a M rs W) I a 861 an 1 d a I O a I 1 I 1 e^ . a o ICT clq 1 / ° 501000wqhN' VISA 1 i th O ' V) IT M M ti u I e a O ba C G ti3 C 7 1 yg Nc r_4) W 4 3 O k G 0 • wdl _ O G Ne r. C a 4tN ccpp U C'J CJ bU) U) W 79 1 m I 1 C ti u ba C G ti3 C W Em all I _VW3300J. WO] A ATIN WDL 3U.1-1 ac-OWITTLation IT resoMes Cor vayment of the $7.5 million in general obligation bonds issued for construction of a hospital facility. The revenue source for repayment of the bonds is a 1% sales tax, equal to one-fourth of the General Fund's .%. tax revenues. Seward Mountain Haven — The Seward Mountain Haven Debt Service Fund was established to accouiM for the accumulation of resources for repayment of the $27 million in revenue bonds issued on Mar 18, 2008, to construct, equip, and furnish a new long-term care facility. The revenues to repay the bo come from the capital cost component of patient charges at Seward Mountain Haven. )I RE W ORM Ulf Deb Balance Shee December 1 rd t' s SewalMounn H 546 , 695 1 , 689 ,6919 235,988 t . . .. 5 46 , 695 Revenues: Investment income Transfers from Providence Seward Medical Center Total revenues Expenditures: Principal payments Interest Total expenditures M111111111qI * 74T.-MMUMI Other financing sources (uses): Transfers in Transfers out Net other financing sources (uses) Seward Mountain Hospital Haven 3,420 12,775 2,569,886 3,420 2,582,661 735,000 - 86,724 1,292,662 821,724 1,292,662 957,688 134,704) 822,984 1 0 s: RE mom, q - M. C; a relatively permanent nature. Hoben Park — To account for improvements to Hoben Park, located adjacent to the Alaska SeaLife Center, including removal and replacement of fencing, monuments and trees, and installation of a sidewaUc Water Front Pavilion — To account for the design and construction costs of a new water front pavilion. rire Department Equipment - To account for the costs of purchasing a fire departmeni breathing air compressor to refill fire air packs. Flood Mitigation — To account for all activities related to the construction the Japanese Creek levee project. Fourth and Adams — To account for the costs of building a town square park to includea public restroorn. facility, bus pullout, covered waiting area, and green space, servicing to revitalize the downtown area. Capital Acquisition — To account for purchase of equipment not financed by the Motor Pool Fund and capital improvements and projects of at least $20,000. Streets and Sidewalks — To account for the costs of repairs to existing streets and sidewalks. Library/Museum — To account for all activities related to the design and construction of the new library and museum. Long-term Care Facility — To account for all activities related to the construction of Seward Mountain Haven, the City's long-term care facility. RR a S r4 C) rd Vl O r°`a Q SOS®M M C4 W')M 0 MN 00 00 m co I..t N y .=C / /11 Nw e ' I a O I O O ti a I I Qn e 163toY}0 V°1 Q'e O'a Iry A `M 5 N 6n CD m M ®M d d'h h Oi Q1 d' U N N N N N d° 1 1 C14 O\C p Ob ON 1 ®O dT 6 N N MI M M M Q CD I.a 9 Q u y O Pi, W w On a ON Ql O\m W Yy2 yyG M rn M M i.,7 i-a Q M M M M co QS eu C3 y U H CL 4 G r°t GG U U 47 63 W ca Gmn44-A gb ate" 445 gyatyq Q Q LJ 1J r-9 f°'°d 6 r 1 d a 1 1 I D r O M M M N M O O N N N 0 b c+Z O O M M Ir1 [^n 00 m eO 1^a7a tO C'-N 00 m N 00 N O Q1 d•N N Oi d e N h..s O MNlaMNNh N N N C°un I M M CmO1ACDMr N O O O N N N M Cn m Q O Qt h N 4!'t O M O O M M 00 00 N N C all b N v1 N Q b tO h h O m M N O M C',M O o+ N N 10 40 Ot r N N eq eT 00 00 00 Z h a 1 a 1 a h h oo N kr{h N NN Qt a h o u O O N O Lft O C Q 1 t0 r 1 1 1 all 1 V1 V'1 N 1(1 1 1 1 N 1 r h 1 Oi 01 O1 Q\M M M M N Col N N M M ON O O 00 CV 1 N d ly m ° t/°1 h M.1 a a aMm.a cc 17'}eY ON Oe a\h bq b9 Oy O ` Cd3 OU C vs C Ld C F.xOS 0 v 43 cd v G SS 0 fl N 0 3 0 C G G C CO. 'G 8jp E'°W 4J y in Z C pp 574 8 111 M. 131011 D1 t 19 1 Enterprise Funds are established to account for the financing of self-supporting activities governmental units, which render services to the general public on a - user-charge basis. Enterprise Funi 2re maintained on the accrual basis of accounting. Electric — To account for the provision of electrical service to the residents of the City and other areas within the electric service area. I III!IIRIII I I I! I i I I! I I! I WINFRIP P , Harbor — To account for the provision of harbor and marine services to the public within the Small Boat Harbor basin, Seward Marine Industrial Center (SMIC) — To account for the provision of marine- related services to the public on the east side of Resurrection Bay. Mrlm= L .&I 117-A,;1.'+ T 1 U"Tv OF SE WARD Electric Enterprise Fund Statement of Net Assets December 31, 2010 With Comparative Amounts for 2009) Assets Current assets: Cash and investments Receivables: Accounts Assessments Interfund loan Other Less allowance for doubtful accounts Net receivables Inventory Total current assets Restricted cash and investments: Bond retirement Capital projects Total restricted cash and investments Assessments receivable, net of current portion Note receivable - PSMC Interfund loan, net of current portion Property, plant and equipment: Land and land rights Buildings Improvements other than buildings Equipment Total property, plant and equipment in service Less accumulated depreciation Net property, plant and equipment in service Construction in progress Total property, plant and equipment Deferred charges - unamortized debt issuance costs Total assets 2010 2009 1,334,884 870,658 727,146 1,531 2,096 15,933 15,138 166,212 35,948 39,180)73,858) 1,015,154 706,470 1,039,345 898,327 2,054,499 2,939,681 677,911 677,911 1 n1l 5 n7l a S1'I "SZ 1,112,984 -),191,-) 10,448 17,927 10,000 llFS2 7aI? 1 1S2d r, 7r, 230,951 230,951 281,474 281,474 38,753,731 3 8,016,274 7,537,344 7,491,200 46,803,500 .46,019,899 30,641,869) (29,203,837) 16,161,631 16, 816, 062 9,775,536 6,036,454 25,937,167 22,852,516 I IQ SS21 1'?SZ nnrl 30,203,421 31,524,385 M Exhibit L -1, continue CITY OF SE WARID Electric Enterprise Fund Statement of Net Assets, continued 2010 2009 Liabilities and Net Asset Liabilities: Current liabilities: Accounts payable Due to other funds Accrued payroll and related liabilities Accrued interest Current portion: Accrued annual leave Bonds payable Customer deposits Deferred revenue Total current liabilities Noncurrent liabilities, net of current portion: Accrued annual leave Bonds payable Unamortized bond premium Total noncurrent liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted for bond retirement Unrestricted Total net assets Total liabilities and net assets 33,399 736,792 233,894 - 34,755 32,438 28,884 30,047 19,767 17,375 330,000 315,000 167,074 173,931 4,857 20,087 852,630 1,325,670 72,492 52,124 6,730,000 7,060,000 66,882 75,247 6,869,374 7,187,371 7,722,004 8,513,041 18, 810,285 15,402,269 677,911 677,911 2,993,221 6,931,164 22,481,417 23,011,344 30,203,421 31,524,385 91 Exhibit L -2 CITE' OF SVV ARD Electric Enterprise Fund Statement of Revenues, Expenses and Change in Net Assets Year Ended December 31, 2010 With Comparative Amounts for 2009) 2010 2009 Operating revenues: Residential Small general service Large general service Industrial Harbor power Street and yard lights Miscellaneous Total operating revenues Operating expenses: Power Distribution Administration and general Depreciation Total operating expenses Earnings (loss) from operations Nonoperating revenues (expenses): Intergovernmental Investment income Interest expense Gain on disposal of capital assets Other expenses Net nonoperating revenues (expenses) Earnings (loss) before contributions and transfers Capital contributions Transfers out Change in net assets Beginning net assets Ending net assets 2,727,990 2,831,034 1,460,843 1,445,536 3,330,873 3,237,743 952,255 1,062,875 186,304 293,913 66,413 66,422 117,472 123,113 8,842,150 9,060,636 4,537,179 5,731,939 17,152)496,717 2,334,870 2,360,498 1,438,032 1,414,379 8,292,929 10,003,533 549,221 (942,897) 13,482 19,627 56,187 112,621 323,864) (336,590) 5,000 - 40,624) (43,677) 289,819) (248,019) 259,402 (1,190,916) 252,413 1,968,952 1,041,742) (1,055,131) 529,927) (277,095) 23,011,344 23,288,439 22,481,417 23,011,344 Of the total depreciation expense of $1,438,032 above, $864,380 was attributable to capital assets that were funded with capital contributions.) 92 CTI Y Cr SEWARD Electric Enterprise Fund Statement of Cash Flows Year Ended December 31, 2010 With Comparative Amounts for 2009) Cash flows from operating activities: Receipts from customers and users Payments to suppliers Payments to employees Payments for interfund services used Net cash flows from operating activities Cash flows from noncapital financing activities - transfers out Cash flows from capital and related financing activities: Proceeds from disposal of capital assets Principal payments on long -term debt Interest payments on long -term debt Acquisition of property, plant and equipment Received on note receivable Capital contributions received Increase in due to other funds Net cash flows from capital and related financing activities Cash flows from investing activities: Investment income received Interfund loan receipts Net cash flows from investing activities Net decrease in cash and investments Beginning cash and investments Ending cash and investments Reconciliation of cash and investments to statement of net assets: Current assets Restricted assets Reconciliation of earnings (loss) from operations to net cash provided (used) by operating activities: Earnings (loss) from operations Adjustments to reconcile earnings (loss) from operations to net cash flows from operating activities: Depreciation Amortization of debt issuance costs Other nonoperating expenses Noneash expense - PERS relief Increase (decrease) in allowance for doubtful accounts Increase (decrease) in assets: Receivables Prepaid expenses Inventory Increase (decrease) in liabilities: Accounts payable Accrued payroll and related liabilities Accrued annual leave Customer deposits Deferred revenue Net cash flows from operating activities Exhibit L -3 2010 2009 8,511,609 9,123,470 5,854,517) (6,673,315) 1,023,148) (1,046,939) 815,283 (812,986 818,661 590,230 1,041,742 (1,055,131 5,000 315,000) (305,000) 333,392) (329,301) 4,522,683) (5,456,369) 10,000 105,000 260,457 2,027,005 233,894 - 4,661,724 (3,958,665 56,187 180,419 15,139 14,382 71,326 194,801 4,813,479) (4,228,765) 6,526,463 10,755,228 1,712,984 6,526,463 1,334,884 1,712,984 5,191,579 1,712,984 6,526,463 549,221 (942,897) 1,438,032 1,414,379 8,425 8,425 40,624)43,677) 13,482 19,627 34,678)34,072 273,776) 139,963 9,950 141,018) (5,348) 703,393)46,470 2,317 13,343 22,760 7,124 6,857)42,056) 15,230 69,145 818,661 590,230 93 P -Aihit T -d ClTrY OF SWARD Electric Enterprise Fund Schedule of Operating Expenses Year Ended December 31, 2010 With Comparative Amounts for 2009) 2010 2009 Power: Salaries and employee benefits Purchased services Power for resale Supplies, maintenance and other Total power Distribution: Salaries and employee benefits Salary credits - work orders Purchased services Supplies and maintenance Supply credits - work orders Administration and general Total distribution Administration and general: Salaries and employee benefits Purchased services Supplies and maintenance Administrative fee Other Total administration and general Depreciation Total operating expenses 132,016 5,425 215,205 77,296 4,147,908 5,514,338 42,050 134,880 4,537,179 5,731,939 327,828 307,555 317,426)114;916) 89,107 69,516 12,127)346,319 123,013)112,960) 18,479 1,203 17,152) 496,717 919,289 888,969 339,818 279,492 95,816 137,408 815,283 812,986 164,664 241,643 2,334,870 2,360,498 1,438,032 1,414,379 8,292,929 10,003,533 llI Exhibit L -5 CITY OF SEWAIRW Electric Enterprise Fund Schedule of Composition of Net Assets December 31, 2010 With Comparative Amounts for 2009) 2010 2009 Grants and other external contributions Related accumulated amortization City - generated equity Total net assets 28,041,834 27,789,421 16,192,740) (15,328,360) 10,632,323 10,550,283 22,481,417 23,011,344 95 FXhihit T . -i IImY OF SEA:' ^ARD Electric Enterprise Fund Schedule of Electric Capital Projects Year Ended December 31, 2010 Funding sources - Electric Fund Capital outlay: Salaries and employee benefits Contracted services Other services and charges Total capital outlay Standby Electric Transmission Generation Line Proj ect Upgrade 2,868,673 579,019 46,945 2,819,465 494,250 2,263 84,769 2,868,673 579,019 CITY OF SEWARD Water Enterprise Fund Statement of Net Assets December 31, 2010 With Comparative Amounts for 2009) Exhibit L -7 Assets 2010 2009 Current assets: Cash and investments 1,252,792 1,565,841 Receivables: Accounts 86,175 73,545 Assessments 7,069 7,069 Grants and loans 386,383 594,510 Less allowance for doubtful accounts 3,626 5,192) Net receivables 476,001 669,932 Inventory 69,822 69,605 Total current assets 1,798,615 2,305,378 Restricted cash and investments - capital projects 141,594 141,594 Assessments receivable, net of current portion 24,742 31,810 Interfund loan 1,973,360 1,973,360 Property, plant and equipment: Land and land rights 2,507 2,507 Buildings 1,287,853 1,287,854 Improvements other than buildings 5,826,138 5,826,138 Equipment 1,270,366 1,240,784 Total property, plant and equipment in service 8,386,864 8,357,283 Less accumulated depreciation 3,875,735 3,671,131 Net property, plant and equipment in service 4,511,129 4,686,152 Construction in progress 797,434 381,768 Total property, plant and equipment 5,308,563 5,067,920 Total assets 9,246,874 9,520,062 Liabilities and Net Asset Liabilities: Current liabilities: Accounts payable 5,230 609,850 Accrued payroll and related liabilities 7,936 5,868 Accrued interest 114,400 74,607 Current portion: Accrued annual leave 4,525 3,475 Notes payable 212,957 95,636 Total current liabilities 345,048 789,436 Noncurrent liabilities, net of current portion: Accrued annual leave 11,881 10,424 Notes payable 2,478,514 3,151,559 Total noncurrent liabilities 2,490,395 3,161,983 Total liabilities 2,835,443 3,951,419 Net assets: Invested in capital assets, net of related debt 2,617,092 1,820,725 Unrestricted 3,794,339 3,747,918 Total net assets 6,411,431 5,568,643 Total liabilities and net assets 9,246,874 9,520,062 97 C,iTY OF SENV Water Enterprise Fund Statement of Revenues, Expenses and Change in Net Assets Year Ended December 31, 2010 With Comparative Amounts for 2009) Operating expenses Salaries and benefits 2010 2009 Operating revenues: 244,080 247,577 Residential 375,221 359,181 Small general service 104,175 124,947 Large general service 171,312 156,038 Industrial 168,915 119,711 Seward Marine Industrial Center 58,343 51,795 Ship water sales 61,263 81,390 Miscellaneous 95,659 79,651 Total operating revenues 1,034,888 972,713 Operating expenses Salaries and benefits 273,392 265,439 Purchased services 244,080 247,577 Supplies and maintenance 82,381 92,900 Administration and general 224,914 224,280 Other 21,579 18,887 Depreciation 204,604 214,909 Total operating expenses 1,050,950 1,063,992 Loss from operations 16,062)91,279) Nonoperating revenues (expenses): Intergovernmental 8,776 15,984 Investment income 36,215 29,529 Interest expense 39,793 )192 Net nonoperating revenues (expenses)5,198 45,321 Loss before contributions and transfers 10,864)45,958) Capital contributions 941,943 Transfers out 88,291 82,767 Change in net assets 842,788 128,725) Beginning net assets 5,568,643 5,697,368 Ending net assets 6,411,431 5,568,643 Of the total depreciation expense of $204,604 above, $29,439 was attributable to capital assets that were funded with capital contributions.) Exhibit L -9 CITY OF SEWARD Water Enterprise Fund Statement of Cash Flows Year Ended December 31, 2010 With Comparative Amounts for 2009) 2010 2009 Cash flows from operating activities: Receipts from customers and users 1,020,692 968,025 Payments to suppliers 358,531)361,076) Payments to employees 260,041)254,375) Payments for interfund services used 224,914 224,280 Net cash flows from operating activities 177,206 128,294 Cash flows from noncapital financing activities: Transfers out 88,291)82,767) Noncapital intergovernmental revenues received 2,106 Net cash flows from noncapital financing activities 88,291)80,661 Cash flows from capital and related financing activities: Acquisition of property, plant and equipment 445,247)13,464) Received on note and loan receivable 180,755 Capital contributions received 7,068 35,505 Net cash flows from capital and related financing activities 438,179)202,796 Cash flows from investing activities - investment income received 36,215 29,529 Net increase (decrease) in cash and investments 313,049)279,958 Beginning cash and investments 1,707,435 1,427,477 Ending cash and investments 1,394,386 1,707,435 Reconciliation of cash and investments to statement of net assets: Current assets 1,252,792 1,565,841 Restricted assets 141,594 141,594 1,394,386 1,707,435 Reconciliation of loss from operations to net cash provided (used) by operating activities: Loss from operations 16,062)91,279) Adjustments to reconcile loss from operations to net cash flows from operating activities: Depreciation 204,604 214,909 Noncash expense - PERS relief 8,776 13,878 Increase (decrease) in allowance for doubtful accounts 1,566)2,192 Increase) decrease in assets: Accounts receivable 12,630)6,880) Inventory 217)4,886) Increase (decrease) in liabilities: Accounts payable 10,274)3,174 Accrued payroll and related liabilities 2,068 967 Accrued annual leave 2,507 3,781) Net cash flows from operating activities 177,206 128,294 Noncash capital and related financing activities - a balance of 594,346 in accounts payable at December 31, 2009 was forgiven in 2010 and reflected as capital contributions 594,346 Exhibit L -10 C IT`S OF SEWAR D Water Enterprise Fund Schedule of Composition of Net Assets December 31, 2010 With Comparative Amounts for 2009) Grants and other external contributions Related accumulated amortization Contributions from other funds City - generated equity Total net assets 2010 2009 3,399,553 2,457,610 1,830,355)1,800,916) 498,756 498,756 4,343,477 4,413,193 6,411,431 5,568,643 100 Exhibit L -11 Property, plant and equipment Land and land rights CITY CF 0 0Vv'vARD 111,011 Buildings 2,418,398 Wastewater Enterprise Fund Improvements other than buildings 8,952,968 8,952,968 Statement of Net Assets 705,897 292,907 Total property, plant and equipment in service December 31, 2010 11,775,285 Less accumulated depreciation 6,903,924 With Comparative Amounts for 2009) Net property, plant and equipment in service 5,284,350 5,147,969 Assets 2010 2009 Current assets: 5284,350 5,502,077 Total assets Cash and investments 6,160,034 396,006 395,033 Receivables: Liabilities: Accounts 74,030 81,009 Other 8,108 20,000 Less allowance for doubtful accounts Accrued interest 3,331 5,905 Net receivables 90,699 75,104 Total current assets 3,135 486,705 470,137 Restricted cash and investments - capital projects 112,11.5 187,820 Property, plant and equipment Land and land rights 111,011 111,011 Buildings 2,418,398 2,418,399 Improvements other than buildings 8,952,968 8,952,968 Equipment 705,897 292,907 Total property, plant and equipment in service 12,188,274 11,775,285 Less accumulated depreciation 6,903,924 6,627,316 Net property, plant and equipment in service 5,284,350 5,147,969 Construction in progress 354,108 Total property, plant and equipment 5284,350 5,502,077 Total assets 5,883,170 6,160,034 Liabilities and Net Assets Liabilities: Current liabilities: Accounts payable 8,906 8,108 Accrued payroll and related liabilities 7,836 6,372 Accrued interest 3,932 565 Current portion: Accrued annual leave 3,841 3,135 Notes payable 116,353 58,415 Total current liabilities 140,868 76,595 Noncurrent liabilities, net of current portion Accrued annual leave 15,624 9,405 Notes payable 122,492 181,763 Total noncurrent liabilities 138,116 191,168 Total liabilities 278.984 267.763 Net assets Invested in capital assets, net of related debt 5,045,505 5,261,899 Unrestricted 558,681 630.372 Total net assets 5,604,186 5,892,271 Total liabilities and net assets $ 5,883,170 6,160,034 101 Exhibit L -12 PITY OF SEW ARD Wastewater Enterprise Fund Statement of Revenues, Expenses and Change in Net Assets Year Ended December 31, 2010 With Comparative Amounts for 2009) Operating expenses: Salaries and benefits 2010 2009 Operating revenues: 295,790 179,994 Residential 465,108 445,190 Small general service 136,741 107,520 Large general service 193,914 179,191 Seward Marine Industrial Center 50,211 40,898 Miscellaneous 5,442 23,655 Total operating revenues 851,416 796,454 Operating expenses: Salaries and benefits 270,366 236,385 Purchased services 295,790 179,994 Supplies and maintenance 81,689 62,679 Administration and general 138,716 142,232 Other 13,984 12,637 Depreciation 276,608 280,429 Total operating expenses 1,077,153 914,356 288,085) Loss from operations 225,737)117,902) Nonoperating revenues (expenses): Intergovernmental 8,712 11,842 Investment income 6,021 3,678 Interest expense 3,468 4,332 Net nonoperating revenues (expenses)11,265 11,188 Loss before transfers 214,472)106,714) Transfers out 73,613 68,667 Change in net assets 288,085)175,381) Beginning net assets 5,892,271 6,067,652 Ending net assets 5,604,186 5,892,271 Of the total depreciation expense of $276,609 above, $215,657 was attributable to capital assets that were funded with capital contributions.) 102 Exhibit L -13 CITY OF SEWARD Wastewater Enterprise Fund Statement of Cash Flows Year Ended December 31, 2010 With Comparative Amounts for 2009) Cash flows from capital and related financing activities: Principal payments on long -term debt (1,333) (57,584) Interest payments on long -term debt (101) (4,466) Acquisition of property, plant and equipment (58,881) (257,228) Received on note receivable - 239,600 Net cash flows from capital and related financing activities (60,315 (79,678 Cash flows from investing activities - investment income received 6,021 3,678 Net increase (decrease) in cash and investments (74,732) 19,189 Beginning cash and investments 582,853 563,664 Ending cash and investments $ 508,121 582,853 Reconciliation of cash and investments to statement of net assets Current assets 2010 2009 Cash flows from operating activities: 112,115 187,820 Receipts from customers and users 835,821 792,259 Payments to suppliers 390,665)255,362) Payments to employees 253,265)230,809) Payments for interfund services used 138,716 142,232 Net cash flows from operating activities 53,175 163,856 to net cash flows from operating activities: Cash flows from noncapital financing activities - transfers out 73,613)68,667 Cash flows from capital and related financing activities: Principal payments on long -term debt (1,333) (57,584) Interest payments on long -term debt (101) (4,466) Acquisition of property, plant and equipment (58,881) (257,228) Received on note receivable - 239,600 Net cash flows from capital and related financing activities (60,315 (79,678 Cash flows from investing activities - investment income received 6,021 3,678 Net increase (decrease) in cash and investments (74,732) 19,189 Beginning cash and investments 582,853 563,664 Ending cash and investments $ 508,121 582,853 Reconciliation of cash and investments to statement of net assets Current assets 396,006 395,033 Restricted assets 112,115 187,820 508,121 582,853 Reconciliation of loss from operations to net cash provided used) by operating activities: Loss from operations 225,737)117,902) Adjustments to reconcile loss from operations to net cash flows from operating activities: Depreciation 276,608 280,429 Noncash expense - PERS relief 8,712 11,842 Increase (decrease) in allowance for doubtful accounts 2,574)2,564 Increase) decrease in assets - accounts receivable 13,021)6,759) Increase (decrease) in liabilities: Accounts payable 798 52) Accrued payroll and related liabilities 1,464 1,141 Accrued annual leave 6,925 7,407 Net cash flows from operating activities 53,175 163,856 103 Fxhihit 1,-14 CITY OF SE WARD Wastewater Enterprise Fund Schedule of Composition of Net Assets December 31, 2010 With Comparative Amounts for 2009) 2010 2009 Grants and other external contributions Related accumulated amortization Contributions from other funds City - generated equity Total net assets 10,155,599 10,155,599 6,584,269) (6,368,612) 161,550 161,550 1,871,306 1,943,734 5,604 5,892,271 104 Current assets: Cash and investments Receivables: Accounts Grants Commercial passenger vessel tax Assessments Less allowance for doubtful accounts Net receivables Total current assets Restricted cash and investments: Bond retirement Capital projects Total restricted cash and investments CITY OF SEWARD Harbor Enterprise Fund Statement of Net Assets December 31, 2010 With Comparative Amounts for 2009) Assets Assessments receivable, net of current portion Property, plant and equipment: Land and land rights Buildings Improvements other than buildings Equipment Total property, plant and equipment in service Less accumulated depreciation Net property, plant and equipment in service Construction in progress Total property, plant and equipment Deferred charges - unamortized debt issuance costs Total assets Liabilities: Current liabilities: Accounts payable Accrued payroll and related liabilities Accrued interest Current portion: Accrued annual leave Bonds payable Interfund loan Deferred revenue Customer deposits Total current liabilities Liabilities and Net Asset Noncurrent liabilities, net of current portion: Accrued annual leave Bonds payable Interfund loan Unamortized bond premium Unamortized deferred loss on refunding Total noncurrent liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted for capital projects and bond retirement Unrestricted Total net assets Total liabilities and net assets Exhibit L -15 2010 2009 1,776,249 1,154,293 147,507 138,580 1,466,082 545,577 374,294 387,413 4,286 4,286 19,100)1 9,100) 1,973,069 1,056,756 3,749,318 2,211,049 859,348 859,348 1,927,277 1,250,345 2,786,625 2,109,693 15,002 19,289 5,117,479 5,117,479 610,169 610,169 22,416,800 22,416,800 1,366,594 1,375,592 29,511,042 29,520,040 9,997,524 (8,919,631 19,513,518 20,600,409 2,862,430 1,904,850 22,375,948 22,505,259 85,143 91,071 29,012,036 26,936,361 1,577,647 164,680 23,525 20,962 36,168 40,199 14,228 13,968 385,000 360,000 21,193 20,088 946,716 869,665 50,800 42,155 3,055,277 1,531,717 35,405 41,903 6,880,000 7,265,000 124,783 145,975 112,720 121,096 70,959 (77,410 7,081,949 7,496,564 10,137,226 9,028,281 15,069,187 14,836,573 2,786,625 1,432,601 1,018,998 1,63 8,906 18, 874, 810 17,908,080 29,012,036 26,936,361 105 Exhibit L -16 CITE' OF SEXXIAD" Harbor Enterprise Fund Statement of Revenues, Expenses and Change in Net Assets Year Ended December 31, 2010 With Comparative Amounts for 2009) Operating expenses: Salaries and benefits 2010 2009 Operating revenues: 341,415 344,283 Moorage 1 1,372,024 Wharfage 60,476 33,766 Boat lift fees 99,877 89,247 Power sales 225,303 186,246 Rentals and leases 308,866 301,383 Passenger transit fees 544,947 503,283 Miscellaneous 113,621 110,975 Total operating revenues 2,803,828 2,596,924 Operating expenses: Salaries and benefits 842,203 883,859 Purchased services 341,415 344,283 Power for resale 149,796 187,645 Supplies and maintenance 105,946 102,004 Administration and general 345,527 386,194 Depreciation 1,086,891 1,122,742 Total operating expenses 2,871,778 3,026,727 Loss from operations 67,950)429,803) Nonoperating revenues (expenses): Intergovernmental 2,641,980 394,883 Investment income 47,114 36,013 Commercial passenger vessel tax 720,040 771,065 Interest expense 341,168)361,088) Breakwater design 500,000) Dredging 2,313,022)99,832) Coast Guard building 480,554 Net nonoperating revenues (expenses)274,390 241,041 Earnings (loss) before contributions and transfers 206,440 188,762) Capital contributions 794,074 385,649 Transfers in 302,262 Transfers out 336,046 320,095 Change in net assets 966,730 123,208) Beginning net assets 17,908,080 18,031,288 Ending net assets $ 18,874,810 17,908,080 Of the total depreciation expense of $1,086,891 above, $628,245 was attributable to capital assets that were funded with capital contributions.) 106 Cash flows from capital and related financing activities Principal payments on long -term debt 360,00) Exhibit L -17 CITY OF SEWARD 347,124)362,872) Harbor Enterprise Fund 957,581)495,285) Statement of Cash Flows 1,041,692 38,737 Year Ended December 31, 2010 20,087)19,040) With Comparative Amounts for 2009) 733,160 729,400 Net cash flows from capital and related financing activities 2010 2009 Cash flows from operating activities: 47,114 36,013 Receipts from customers and users 2,880,597 2,666,943 Payments to suppliers 1,971,838)1,157,137) Payments to employees 816,920)821,742) Payments for interfund services used 345,527)386,194 Net cash flows from operating activities 253,688)301,870 Cash flows from noncapital financing activities: 2,786,625 2,109,693 Transfers in 302,262 Transfers out 336,046)320,095) Nonoperating intergovernmental revenues received 1,449,186 245,737 Net cash flows from noncapital financing activities 1,415,402 74,358 Cash flows from capital and related financing activities Principal payments on long -term debt 360,00)340,000) Interest payments on long -term debt 347,124)362,872) Acquisition of property, plant and equipment 957,581)495,285) Capital contributions received 1,041,692 38,737 Interfund loan payment 20,087)19,040) Commercial passenger vessel tax receipts 733,160 729,400 Net cash flows from capital and related financing activities 90,060 449,060 Cash flows from investing activities - investment income received 47,114 36,013 Net increase (decrease) in cash and investments 1,298,888 185,535) Beginning cash and investments 3,263,986 3,449,521 Ending cash and investments 4,562,874 3,263,986 Reconciliation of cash and investments to statement of net assets: Current assets 1,776,249 1,154,293 Restricted assets 2,786,625 2,109,693 4,562,874 3,263,986 Reconciliation of loss from operations to net cash provided (used) by operating activities: Loss from operations 67,950)429,803) Adjustments to reconcile loss from operations to net cash flows from operating activities: Depreciation 1,086,891 1,122,742 Amortization of debt issuance costs 5,928 5,929 Noncash expense - PERS relief 28,958 49,314 Nonoperating expenses 2,793,576)599,832) Increase (decrease) in allowance for doubtful accounts 5,488) Increase) decrease in assets - receivables 8,927)12,637 Increase (decrease) in liabilities: Accounts payable 1,412,967 70,698 Accrued payroll and related liabilities 2,563 1,669 Accrued annual leave 6,238)11,134 Customer deposits 8,645 41,220 Deferred revenue 77,051 21,650 Net cash flows from operating activities 253,688 301,870 107 Fxhihit T._1 R CITY Vl .x EVV ARD Harbor Enterprise Fund Schedule of Composition of Net Assets December 31, 2010 With Comparative Amounts for 2009) 2010 2009 Grants and other external contributions Related accumulated amortization Contributions from other funds City - generated equity Total net assets 20,233,398 19,439,324 6,584,083) (5,955,838) 4,362,532 4,060,270 862,963 364,324 18,874,810 17,908,080 1: Exhibit L -19 CY i Y 0r SEWAR Harbor Enterprise Fund Schedule of Harbor Capital Projects Year Ended December 31, 2010 Funding sources: State grants Federal grants Harbor Fund Total funding sources Capital outlay: Contracted services Other services and charges Total capital outlay Seward Harbor Marine Expansion Center Dock 107,721 132,099 554,255 - 163,504 - 825,480 132,099 801,856 120,090 23,624 12,009 825,480 132,099 109 Exhibit L -20 CI F4' OF SENAV -PD Seward Marine Industrial Center Enterprise Fund Statement of Net Assets December 31, 2010 With Comparative Amounts for 2009) Assets 2010 2009 Current assets: Cash and cash equivalents $ - 18,918 Accounts receivable 44,621 36,522 Total current assets 44,621 55,440 Property, plant and equipment Land and. land rights 12,021,821 12,021,821 Buildings 280,287 280,287 Improvements other than buildings 26,798,104 26,798,104 Equipment 908,789 908,789 Docks and floats 13,145,688 13,145,688 Total property, plant and equipment in service 53,154,689 53,154,689 Less accumulated depreciation 26,980,345 26,358,011 Net property, plant and equipment in service 26,174,344 26,796,678 Total assets 26,218,965 26,852,118 Liabilities and Net Asset Liabilities: Current liabilities: Accounts payable 15,531 2,323 Due to other funds 27,141 Accrued payroll and related liabilities 1,832 1,888 Accrued interest 172 310 Current portion of bonds payable 59,030 55,094 Deferred revenue 40,000 24,728 Total current liabilities 143,706 84,343 Noncurrent liabilities, net of current portion - bonds payable - 59,030 Total liabilities 143,706 143,373 Net assets: Invested in capital assets, net of related debt 26,115,314 26,682,554 Unrestricted (deficit) (40,055) 26,191 Total net assets 26,075,259 26,708,745 Total liabilities and net assets $ 26,218,965 26,852,118 110 Rvh;l,;+ r _71 CITY OF SEWARD Seward Marine Industrial Center Enterprise Fund Statement of Revenues, Expenses and Change in Net Assets Year Ended December 31, 2010 With Comparative Amounts for 2009) 2010 Operating revenues: Moorage Wharfage Boat lift fees Storage Rentals and leases Power sales Miscellaneous Total operating revenues Operating expenses: Salaries and benefits Purchased services Supplies and maintenance Administration and general Depreciation Miscellaneous Total operating expenses Loss from operations Nonoperating revenues (expenses): Intergovernmental Investment income Interest expense Net nonoperating revenues (expenses) Loss before transfers Transfers in Transfers out Change in net assets Beginning net assets Ending net assets 1,764 4,705 69,380 67,936 139,634 12,498 222 296,139 73,178 77,400 43,953 87,213 622,334 18,631 922,709 2009 2,678 9,718 96,306 55,729 71,429 27,501 414 263,775 89,093 110,186 60,748 77,099 642,521 5,585 985,232 626,570) (721,457) 1,660 2,892 264 1,080 3,581) (5,234) 1,657 (1,262) 628,227) (722,719) 70,567 140,230 75,826 67,533) 633,486) (650,022) 26,708,745 27,358,767 26,075,259 26,708,745 Of the total depreciation expense of $622,334 above, $503,032 was attributable to capital assets that were funded with capital contributions.) 111 Exhibit L -22 n i1T 1 OF O QEWAPvD Seward Marine Industrial Center Enterprise Fund Statement of Cash Flows Year Ended December 31, 2010 With Comparative Amounts for 2009) 2010 2009 Cash flows from operating activities: Receipts from customers and users $ 303,312 264,343 Payments to suppliers (126,776) (219,458) Payments to employees (71,574) (85,396) Payments for interfund services used 87,213 77,099 Net cash flows from operating activities 17,749 117,610 Cash flows from noncapital financing activities: Transfers in 70,567 140,230 Transfers out 75,826 (67 Net cash flows from noncapital financing activities 5,259 72,697 Cash flows from capital and related financing activities: Principal payments on long -term debt 55,094)55,094) Interest payments on long -term debt 3,719)5,372) Acquisition of property, plant and equipment 3,240) Increase in due to other funds 27,141 Net cash flows from capital and related financing activities 31,672 63,706 Cash flows from investing activities - investment income received 264 1,080 Net decrease in cash and investments 18,918)107,539) Beginning cash and investments 18,918 126,457 Ending cash and investments 18,918 Reconciliation of loss from operations to net cash provided (used) by operating activities: Loss from operations 626,570)721,457) Adjustments to reconcile loss from operations to net cash flows from operating activities: Depreciation 622,334 642,521 Noncash expense - PERS relief 1,660 2,892 Increase) decrease in assets - accounts receivable 8,099)4,534) Increase (decrease) in liabilities: Accounts payable 13,208 42,939) Accrued payroll and related liabilities 56)805 Deferred revenue 15,272 5,102 Net cash flows from operating activities 17,749 117,610 112 Exhibit L -23 C "I TY OF SEWAP,D Seward Marine Industrial Center Enterprise Fund Schedule of Composition of Net Assets December 31, 2010 With Comparative Amounts for 2009) 2010 2009 Grants and other external contributions $ 35,725,414 35,725,414 Related accumulated amortization (24,266,417) (23,763,385) Contributions from other funds 16,777,942 16,707,375 City - generated deficit (2,161,680) (1,960,659) Total net assets 26,075,259 26,708,745 113 T7__L]L], T n A CI'.'Y'Y OF SEWARD Parking Enterprise Fund Statement of Net Assets December 31, 2010 With Comparative Amounts for 2009) 2010 2009 Assets Current assets - cash and investments $ 387,338 412,074 Property, plant and equipment: Improvements other than buildings 513,540 513,540 Equipment 89,329 75,996 Total property, plant and equipment in service 602,869 589,536 Less accumulated depreciation 487 125 481,987) Net property, plant and equipment in service 115,744 107,549 Total assets $ 503,082 519,623 Liabilities and Net Asset Current liabilities - accounts payable 95 17,753 Net assets: Invested in capital assets 115,744 107,549 Unrestricted 387,243 394,321 Total net assets 502,987 501,870 Total liabilities and net assets $ 503,082 519,623 114 Exhibit L -25 C'I'TY OF SEWAR.D Parking Enterprise Fund Statement of Revenues, Expenses and Change in Net Assets Year Ended December 31, 2010 With Comparative Amounts for 2009) Operating revenues - parking fees Operating expenses: Salaries and employee benefits Supplies and maintenance Purchased services Rents and leases Administration and general Depreciation Total operating expenses Earnings from operations Nonoperating revenues - investment income Earnings before transfers Transfers out Change in net assets Beginning net assets Ending net assets 2010 2009 192 162,120 110,520 93,199 18,943 5,619 927 13,000 13,000 22,951 16,617 13,638 4,994 179,052 135,356 12,994 26,764 3,487 1,645 16,481 28,409 15,364) 12,970 1,117 15,439 501,870 486,431 502,987 501,870 115 Exhibit L -26 CE Y OF STWARD Parking Enterprise Fund Statement of Cash Flows Year Ended December 31, 2010 With Comparative Amounts for 2009) Cash flows from capital and related financing activities - acquisition of property, plant and equipment (21,833 42,811 Cash flows from investing activities - investment income received 3,487 1,645 Net decrease in cash and investments 2010 2009 Cash flows from operating activities: 412,074 430,786 Receipts from customers and users 192,046 162,120 Payments to suppliers 49,601)16,880) Payments to employees 110,520)93,199) Payments for interfund services used 22,951 16,617 Net cash flows from operating activities 8,974 35,424 Cash flows from noncapital financing activities - to net cash flows from operating activities: transfers out 15,364 12,970 Cash flows from capital and related financing activities - acquisition of property, plant and equipment (21,833 42,811 Cash flows from investing activities - investment income received 3,487 1,645 Net decrease in cash and investments 24,736)18,712) Beginning cash and investments 412,074 430,786 Ending cash and investments 387,338 412,074 Reconciliation of earnings from operations to net cash provided (used) by operating activities: Earnings from operations 12,994 26,764 Adjustments to reconcile earnings from operations to net cash flows from operating activities: Depreciation 13,638 4,994 Decrease in assets - prepaid expenses 4,187 Decrease in liabilities - accounts payable 17,658 )521 Net cash flows from operating activities 8,974 35,424 116 Exhibit L -27 CITY OF SEWAR.D Parking Enterprise Fund Schedule of Composition of Net Assets December 31, 2010 With Comparative Amounts for 2009) 2010 2009 Grants and other external contributions Related accumulated amortization Contributions from other funds City - generated equity Total net assets 425,893 425,893 425,893)425,893) 7,650 7,650 495,337 494,220 502,987 501,870 117 This page left blank intentionally) 118 INTERNAL SERVICE FUNDS Motor Pool — The Motor Pool Internal Service Fund accounts for payments from departments for the use of vehicles, in order to accumulate cash to forward -fund replacement of vehicles. This funding mechanism spreads the cost of the vehicles over the expected life of the vehicle in each program's annual budget, rather than to show the cost of vehicles as a one -time expense to each fund in the year of purchase.. Compensated Annual Leave — The Compensated Annual Leave Fund was created in 2005 for the purpose of accumulating cash reserves to pay annual leave cash -outs for governmental funds. 119 Exhibit M -1 CITY. OF SEWARD Motor Pool Internal Service Fund Statement of Net Assets December 31, 2010 With Comparative Amounts for 2009) Assets 2010 2009 Current assets: Cash and investments $ 675,325 826,601 Receivables: Accrued interest 63,132 66,405 Interfund loans 64,666 61,392 Total current assets 803,123 954,398 Restricted cash and investments - capital projects - 517,254 Interfund loans, net of current portion 1,130,899 1,195,565 Property, plant and equipment Equipment and vehicles 5,311,136 4,229,564 Less accumulated depreciation 2,448,035 2,235,366 Net property, plant and equipment in service 2,863,101 1,994,198 Construction in progress - 218,007 Total property, plant and equipment 2,863,101 2,212,205 Total assets $ 4,797,123 4,879,422 Liabilities and Net Asset Liabilities: Current liabilities: Accounts payable - 93,071 Accrued interest 7,300 9,547 Current portion of capital lease obligations 184,507 178,033 Total current liabilities 191,807 280,651 Noncurrent liabilities, net of current portion - capital lease obligations 420,717 605,224 Total liabilities 612,524 885,875 Net assets: Invested in capital assets, net of related debt 2,257,877 1,428,948 Unrestricted 1,926,722 2,564,599 Total net assets 4,184,599 3,993,547 Total liabilities and net assets $ 4,797,123 4,879,422 120 Exhibit M -2 CITY. OF SEWARD Motor Pool Internal Service Fund Statement of Revenues, Expenses and Change in Net Assets Year Ended December 31, 2010 With Comparative Amounts for 2009) 2010 Operating revenues - vehicle rental Operating expenses: Depreciation Supplies and maintenance Total operating expenses Earnings from operations Nonoperating revenues (expenses): Gain on disposal of capital assets Investment income Interest expense Miscellaneous Net nonoperating revenues (expenses) Change in net assets Beginning net assets Ending net assets 2009 443,382 512,193 339,354 223,124 2,140 - 341,494 223,124 101,888 289,069 47,129 1,693 66,670 72,180 24,635)18,878) 295 89,164 54,700 191,052 343,769 3,993,547 3,649,778 4,184,599 3,993,547 Of the total depreciation expense of $339,354 above, $0 was attributable to capital assets that were funded with capital contributions.) 121 Exhibit M -3 CITY OF SEWARD Motor Pool Internal Service Fund Statement of Cash Flows Year Ended December 31, 2010 With Comparative Amounts for 2009) Cash flows from operating activities: Receipts from interfund charges Payments to suppliers Net cash flows from operating activities Cash flows from capital and related financing activities: Principal payments on long -term debt Interest payments on long -term debt Acquisition of equipment and vehicles Proceeds from sale of capital assets Net cash flows from capital and related financing activities Cash flows from investing activities: Interfund loan receipts Investment income received Net cash flows from investing activities Net increase in cash and investments Beginning cash and investments Ending cash and investments Reconciliation of cash and investments to statement of net assets: Current assets Restricted assets Reconciliation of earnings from operations to net cash provided (used) by operating activities: Earnings from operations Adjustments to reconcile earnings from operations to net cash flows from operating activities: Depreciation Other nonoperating expenses Net cash flows from operating activities Noncash capital and related financing activities - equipment and vehicles acquired by capital lease 2010 2009 443,382 512,193 2,140 295 441,242 511,898 178,033)164,005) 26,882)9,331) 1,083,321)235,117) 47,129 11,150 1,241,107 (397,303 61,392 58,284 69,943 75,288 131,335 133,572 668,530) 248,167 1,343,855 1,095,688 675,325 1,343,855 675,325 826,601 517,254 675,325 1,343,855 101,888 289,069 339,354 223,124 295 44.1,242 511,898 947,262 122 Exhibit M -4 CITY OF SEWARD Motor Pool Internal Service Fund Schedule of Composition of Net Assets December 31, 2010 With Comparative Amounts for 2009) 2010 2009 Grants and other external contributions Related accumulated amortization Contributions from other funds City - generated equity Total net assets 97,289 97,289 97,289) (97,289) 832,324 832,324 3,352,275 3,161,223 4,184,599 3,993,547 123 Exhibit M -5 CITE' OF SEWARD Compensated Annual Leave Internal Service Fund Statement of Net Assets December 31, 2010 With Comparative Amounts for 2009) Assets 2010 2009 Current assets - cash and investments Liabilities and Net Asset Liabilities: Current liabilities - accrued annual leave Long -term accrued annual leave Total liabilities Net assets Total liabilities and net assets 457,188 432,065 109,056 108,616 348,132 323,449 457,188 432,065 457,188 432,065 124 Exhibit M -6 CITY OF SEWARD Compensated Annual Leave Internal Service Fund Statement of Revenues, Expenses and Change in Net Assets Year Ended December 31, 2010 With Comparative Amounts for 2009) Operating revenues - interfund charges Operating expenses - salaries and benefits Change in net assets Beginning net assets Ending net assets 2010 2009 360,287 389,083 360,287 389,083 125 Exhibit M -7 CITY. OF SEWARD Compensated Annual Leave Internal Service Fund Statements of Cash Flows Year Ended December 31, 2010 With Comparative Amounts for 2009) Cash flows from operating activities: Receipts from interfund charges Payments to employees Net cash flows from operating activities Beginning cash and investments Ending cash and investments Reconciliation of earnings from operations to net cash provided by operating activities: Earnings from operations Adjustments to reconcile earnings from operations to net cash flows from operating activities - increase in accrued annual leave Net cash flows from operating activities 2010 2009 360,287 389,083 335,164 )333,623 25,123 55,460 432,065 376,605 457,188 432,065 25,123 55,460 25,123 55,460 126 Exhibit N -1 CITE' OF SEWARD Teen Council Agency Fund Schedule of Changes in Assets and Liabilities Year Ended December 31, 2010 Balance at Balance at January 1, December 31, 2010 Additions Deletions 2010 Assets Cash and investments $ 41,715 38,044 32,864 46,895 Prepaid expenses and other 150 - - 150 Total assets $ 41,865 38,044 32,864 47,045 Liabilitie Accounts payable 2,004 78 -2,082 Due to Teen Council 39,861 37,966 32,864 44,963 Total liabilities 41,865 38,044 32,864 47,045 127 FXh;h;t CM CITY OF SEWARD Schedule of Capital Assets December 31, 2010 With Comparative Amounts for 2009) 2010 Capital assets: Land and land improvements Buildings Improvements other than buildings Equipment Construction in progress Total capital assets 5,432,289 79, 892,040 24,262,564 11,437,695 5,759,828 2009 5,432,289 79,817,699 24,196,171 11,556,985 3,672,313 126,784,416 124,675,457 128 Exhibit 0-2 CITY OF SEWARD Schedule of Changes in Capital Assets Year Ended December 31, 2010 Land and land improvements Buildings Improvements other than buildings Equipment Construction in progress Balance at January 1, 2010 Additions Deletions 5,432,289 79,817,699 74,341 - 24,196,171 66,393 - 11,556,985 314,635 433,925 3,672,313 2,087,515 - Balance at December 31, 2010 5,432,289 79,892,040 24,262,564 11,437,695 5,759,828 124,675,457 2,542,884 433,925 126,784,416 129 Exhibit 0-3 CITE' OF SEWARD Schedule of Capital Assets by Function and Activity December 31, 2010 Function and Activity General government: City Council/Mayor City manager City clerk Finance Community development Municipal building Alaska SeaLife Center General services Community and Senior Center Non - departmental Total general government Public safety: Police Jail Animal control Fire Building inspection Seward Volunteer Ambulance Corp Total public safety Public works: Streets Engineering City shop Total public works Healthcare facilities Parks and recreation Library Land and Improve - 9,408 156,720 Land ments 1,028,235 46,746 Improve- 1,960,386 Other than 2,600 ments Buildings Buildings Equipment Total 1,184,955 46,746 44,554 44,554 65,310 65,310 37,988 37,988 65,386 65,386 5,232 2,649 7,881 2,407,729 16,291 54,169 2,478,189 47,382,866 3,072,556 4,382,860 54,838,282 1,479,080 8,005,937 53,025 9,538,042 1,473,935 1,473,935 5,432,289 68,868 5,501,157 5,432,289 52,817,710 11,094,784 4,705,941 74,050 724 1,305,945 1,305,945 9,408 9,408 156,720 156,720 1,028,235 46,746 885,405 1,960,386 2,600 2,600 6,300 6,300 1,184,955 46,746 2,209,658 3,441359 254,567 3,324,312 360,068 3,938,947 3,621 3,621 785,766 65,466 851,232 1,040 333 3,324,312 429,155 4,793 800 23,445,805 8,249,724 3,916,697 35,612,226 676,571 1,534,198 113,575 2,324,344 726,666 12,800 62,669 802,135 Total capital assets allocated to functions $ 5,432,289 79,892,040 24,262,564 11,437,695 121,024,588 Construction in progress Total capital assets 5,759,828 126,784,416 130 TJ__L:L:, !1 A Ci 1 Y OF SE`vYARD Schedule of Changes in Capital Assets by Function and Activity Year Ended December 31, 2010 124,675,457 2,542,884 433,925 126,784,416 131 Capital Capital Assets at Assets at January 1,December 31, Function and Activity 2010 Additions Deletions 2010 General government: City Council /Mayor 54,323 9,769 44,554 City manager 67,963 2,653 65,310 City clerk 48,132 10,144 37,988 Finance 84,370 18,984 65,386 Community development 13,741 5,860 7,881 Municipal building 2,478,189 2,478,189 Alaska Sealife Center 54,474,403 401,724 37,845 54,838,282 General services 9,538,042 9,538,042 Community and Senior Center 1,473,935 1,473,935 Non - departmental 5,501,157 5,501,157 Total general government 73,734,255 401,724 85,255 74,050,724 Public safety: Police 1,464,631 158,687 1,305,944 Jail 22,006 12,598 9,408 Animal control 156,720 156,720 Fire 1,999,239 38,852 1,960,387 Building inspection 2,600 2,600 Seward Volunteer Ambulance Corp 6,300 6,300 Total public safety 3,651,496 210,137 3,441,359 Public works: Streets 4,035,947 5,000 102,000 3,938,947 Engineering 3,621 3,621 City shop 830,747 20,485 851,232 Total public works 4,870,315 25,485 102,000 4,793,800 Healthcare facilities 35,612,226 35,612,226 Parks and recreation 2,311,659 28,160 15,475 2,324,344 Library 823,193 21,058 802,135 Construction in progress 3,672,313 2,087,515 5,759,828 124,675,457 2,542,884 433,925 126,784,416 131 CITY OF SEWARD Schedule of Expenditures of Federal Awards Year Ended December 31, 2010 Exhibit P -1 Impaired Driving Enforcement Catalog of Impaired Driving Enforcement 20.600 154AL 10- 10 -01 -x Seatbelt & DUI Enforcement 20.600 402PT10- 06 -09 -x Total Department of Transportation 2,063 6,358 Institute of Museum and Library Services Federal Passed through State of Alaska Department January 1,Federal Continuing Education Program December 31, Domestic Total 2010 Share of 2010 Assistance Grant Grant Receivable Expen-Federal Receivable Grant Title Number Number Award Deferred ditures Receipts Deferred Department of Agriculture NRCS Flood Mitigation/Construction 10.904 68- 0150 -9 -023 2,184,900 21,911 167,982 159,143 30,750 Department of Interior Passed through State of Alaska Department of Natural Resources: Public Access to Seward Historical Site Inventory 15.904 08492 4,173 1,629 1,629 Hoben Park Restoration 15.904 09511 6,300 5,281 5,281 Total Department of Interior 1,629 5,281 6,910 Department of Justice Passed through State of Alaska Department of Health and Social Services - Title V Delinquency Prevention Grants 16.548 609 -10 -066 45,000 9,000 9,000 Delinquency Prevention Grants 16.548 609 -11 -066 45,000 36,000 36,000 Total CFDA 16.548 45,000 45,000 Bullet Proof Vest Program 16.607 N/A 835 835 835 Total Department of Justice 45,835 45,835 Department of Transportation Passed through State of Alaska Department of Transportation and Public Facilities: Impaired Driving Enforcement 20.600 154AL 11- 01 -03 -x Impaired Driving Enforcement 20.600 154AL 10- 10 -01 -x Seatbelt & DUI Enforcement 20.600 402PT10- 06 -09 -x Total Department of Transportation 2,063 6,358 Institute of Museum and Library Services Passed through State of Alaska Department of Education and Early Development - Continuing Education Program 45.310 CED -10- 770 -170 Environmental Protection Agency Passed through State of Alaska Department of Environmental Conservation - Drinking Water Loan (ARRA) 66.468 Department of Energy Passed through Alaska Energy Authority - Energy Efficiency and Conservation (ARRA) 81.128 Department of Education Passed through State of Alaska Department of Commerce, Community, and Economic Development - Community Economic Stimulus Program (ARRA) 84.397 Denali Commission Seward East Harbor Reconstruction 90.100 4,776 - 2,190 - 2,190 4,776 1,100 2,474 3,574 - 435 - 435 435 - 1,100 5,099 4,009 2,190 921 921 921 769061 610,000 386,220 386,220 7510052 115,800 8,421 2,063 6,358 800252 78,706 78,706 78,706 01006 1,000,000 445,745 554,255 1,000,000 132 CITY OF SEWARtD Schedule of Expenditures of Federal Awards, continued Exhibit P -1, continued 133 Catalog of Federal January 1,Federal December 31, Domestic Total 2010 Share of 2010 Assistance Grant Grant Receivable Expen-Federal Receivable Grant Title Number Number Award Deferred ditures Receipts Deferred Department of Homeland Security Passed through State of Alaska Department of Military and Veterans Affairs: Oct. 06 Southern Alaska Storm Disaster/Flood 97.036 DR- 1669 -AK $361,628 31,405 104,313 5,016 130,702 Communications Equipment (10 Radios)97.073 08SHSP- GR34057 350,000 159,720 615 159,105 Passed through State of Alaska Department of Commerce, Community, and Economic Development - Cleaning System 97.044 EMW2008 -FO -08496 48,607 29,533 29,533 Total Department of Homeland Security 31,405 293,566 35,164 289,807 Total Federal Financial Assistance 501,790 1,546,286 1,332,751 715,325 133 CITY OF SEWARD Schedule of State Financial Assistance Year Ended December 31, 2010 Grant Title Department of Commerce, Community and Economic Development Levee Construction Road /Levee Construction Bus Transportation Assistance for Cruise Ship Passengers Coast Guard Building Relocation Dredging Cruise Ship Berthing Basins and Approaches Security and Fire Protection for Commercial Passenger Vessels Mooring Dolphins and Dock Improvements at Seward Marine Center Community Library State Revenue Sharing Shared Fishery Taxes Total Department of Commerce, Community and Economic Development Department of Military and Veteran Affairs Exhibit 0 -1 2006 South Central Storm Disaster FEMA- AK- DR1669 Dec 09 Storm Surge AK -10 -230 Total Department of Military and Veteran Affairs Department of Environmental Conservation Engineering of Water Tank and Line Extension Department of Revenue Fish Taxes Liquor Licenses Commercial Passenger Vessel Tax 2008 Commercial Passenger Vessel Tax 2009 Passed through Kenai Peninsula Borough Commercial Passenger Vessel Tax 2010 Total Department of Revenue Department of Natural Resources Jesse Lee Home Stabilization and Repair Department of Administration PERS Relief Department of Corrections Community Jails Program Department of Education and Early Development Public Library Assistance Alaska Energy Authority Sea Life Center Heat Pump Project Total State Financial Assistance Major program 76911 143,037 10,468 34,771 1,672 43,567 100,000 3,750 81,878 24,727 60,901 14,218 116,649 26,399 104,468 99,200 N/A 298,316 - 298,316 298,316 N/A 15,400 15,400 15,400 N/A 713,178 (173,378) 113,055 - (60,323) N/A 771,065 (383,652) - 387,413 (771,065) N/A 345,748 - 345,748 345,748 557,030 772,519 1,046,877 (831,388) N/A 1,000,000 January 1,State N/A December 31, 265,843 Total 2010 Share of 5,341) - 2010 Grant Grant Receivable Expendi-State Receivable Number Award Deferred tures Receipts Deferred 08 -DC -411 1,000,000 32,692 585,145 357,865 259,972 09 -DC -527 1,750,000 56,698 154,659 187,153 24,204 10 -DC -023 167,000 101,089 101,089 11 -DC -633 300,000 300,000 263,840 36,160 10 -DC -024 4,500,000 99,832 2,313,022 1,185,347 1,227,507 11 -DC -640 2,000,000 107,721 37,406 70,315 11 -DC -350 1,500,000 132,099 132,099 11 -DC -374 4,700,000 406,319 110,757 295,562 N/A 226,846 226,846 226,846 N/A 3,946 3,946 3,946 189,222 4,330,846 2,474,249 2,045,819 2006 South Central Storm Disaster FEMA- AK- DR1669 Dec 09 Storm Surge AK -10 -230 Total Department of Military and Veteran Affairs Department of Environmental Conservation Engineering of Water Tank and Line Extension Department of Revenue Fish Taxes Liquor Licenses Commercial Passenger Vessel Tax 2008 Commercial Passenger Vessel Tax 2009 Passed through Kenai Peninsula Borough Commercial Passenger Vessel Tax 2010 Total Department of Revenue Department of Natural Resources Jesse Lee Home Stabilization and Repair Department of Administration PERS Relief Department of Corrections Community Jails Program Department of Education and Early Development Public Library Assistance Alaska Energy Authority Sea Life Center Heat Pump Project Total State Financial Assistance Major program 76911 143,037 10,468 34,771 1,672 43,567 100,000 3,750 81,878 24,727 60,901 14,218 116,649 26,399 104,468 99,200 N/A 298,316 - 298,316 298,316 N/A 15,400 15,400 15,400 N/A 713,178 (173,378) 113,055 - (60,323) N/A 771,065 (383,652) - 387,413 (771,065) N/A 345,748 - 345,748 345,748 557,030 772,519 1,046,877 (831,388) N/A 1,000,000 77,286 -77,286 N/A 270,733 265,843 265,843 - N/A 30,581 5,341) -5,341) PLA -11- 770 -67 6,300 6,300 6,300 - 7030017 286,580 113,645 113,645 281,481 5,605,802 3,896,954 1,427,367 134 CITY OF SEWARD Notes to the Schedules of Expenditures of Federal Awards and State Financial Assistance Year Ended December 31, 2010 1) Basis of Presentation The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance include the grant activity of City of Seward and are presented on the modified accrual basis of accounting. The information in the schedules is presented in accordance with the requirements of OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations and the State ofAlaska Audit Guide and Compliance Supplement for State Single Audits. 2) Commercial Passenger Vessel Tax The City has received a total of $713,178 in 2008 Commercial Passenger Vessel taxes, of which 60,323 is unspent as of December 31, 2010. The City has also received $771,065 and $374,293, respectively in 2009 and 2010 Commercial Passenger Vessel taxes directly from the State, none of which has been expended. For financial statement purposes, the City has recognized $713,178 and 771,065, respectively, as revenue for the years ended December 31, 2008 and 2009. 135 This page left blank intentionally) 136 CITY OF SEWARD Statistical Section This part of the City of Seward's comprehensive annualfinancial reportpresents 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 Page 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. Table 1 Net Assets by Component 138 Table 2 Changes in Net Assets 139 Table 3 Fund Balances of Governmental Funds 141 Table 4 Changes in Fund Balances of Governmental Funds 142 Table 5 General Fund Revenues by Source 143 Table 6 General Fund Tax Revenues by Source 144 Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue sources, sales and property tax. Table 7 Property Tax Rates 145 Table 8 Property Tax Levies and Collections 146 Table 9 Assessed and Estimated Actual Value of Taxable Property 147 Table 10 Principal Property Taxpayers 148 Table 11 Principal. Taxable Sales by Line of Business 149 Debt Capacity These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt Table 12 Ratios of Outstanding Debt by Type 150 Table 13 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net Table 19 Demographic and Economic Statistics General Obligation Bonded Debt per Capita 151 Table 14 Computation of Direct and Overlapping Bonded Debt 152 Table 15 Legal Debt Margin 153 Table 16 Ratio of Annual Debt Service Expenditures for General Obligation Debt to 162 Table 25 Miscellaneous Statistics Total General Fund Expenditures 154 Table 17 Revenue Bond Coverage - Electric Enterprise Fund 155 Table 18 Revenue Bond Coverage - Harbor Enterprise Fund 156 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. Table 19 Demographic and Economic Statistics 157 Table 20 Principal Employers 158 Table 21 Full -Time Equivalent Employees by Fund 159 Table 22 Operating Indicators by Function 160 Table 23 Capital Asset Statistics by Function 161 Table 24 Property Value, Construction, and Bank Deposits 162 Table 25 Miscellaneous Statistics 163 137 CITY OF SEWARD Net Assets by Component Last Eight Fiscal Years accrual basis of accounting) amounts expressed in thousands) Table 1 2003 2004 2005 2006 2007 2008 2009 2010 Governmental Activities: Invested in capital assets, net of related debt $ 57,398 55,726 56,495 56,663 58,016 58,016 56,208 56,122 Restricted - - - - - - - - Unrestricted 5,009 6,636 5,946 5,901 5,025 5,993 8,619 9,983 Total governmental activities net assets $ 62,407 62,362 62,441 62,564 63 6404164,009 ,827 66,105 Business -type Activities: Invested in capital assets, net of related debt Restricted Unrestricted Total business -type activities net assets 67,048 66,690 66,155 64,760 65,440 66,754 64,112 67,773 16 700 2,111 3,465 10,354 9,727 12,089 12,837 14,595 14,796 14,777 10,290 77,402 76,417 78,244 77,597 80,051 82,250 81,000 81,528 Primary government: Invested in capital assets, net of related debt $ 124,446 122,416 122,650 121,423 123,456 124,770 120,320 123,895 Restricted -16 700 2,111 3,465 Unrestricted 15,363 16,363 18,035 18,738 19,620 20,789 23,396 20,273 Total primary government net assets $ 139,809 138,779 140,685 140,161 143,092 146,259 145,827 147,633 Note: GASB 34 conversion took place in 2003. Prior year net asset information is not available. 138 Table 2 CITY OF SEWARD Changes in Net Assets Last Eight Fiscal Years accrual basis of accounting) Total primary government net expense $ (7,222,041) (6,807,055) (3,930,782) (6,485,245) 3,922,783) (6,323,791) (8,751,698) 5,414,575 Note: GASB 34 conversion took place in 2003. Prior year net asset information is not available. 139 2003 2004 2005 2006 2007 2008 2009 2010 Expenses Governmental activities: General government 1,355,573 1,731,427 1,770,306 2,158,969 1,161,765 2,501,443 1,451,682 800,716 Public safety 2,286,556 2,299,873 2,383,911 2,440,488 2,980,785 2,934,607 3,029,935 3,168,421 Public works 1,145,730 1,265,153 1,383,178 1,704,296 2,650,977 1,310,474 1,456,468 1,991,925 Parks and recreation 996,112 1,046,681 1,099,556 1,075,945 981,222 1,236,411 1,247,366 1,462,365 Library 316,679 358,364 367,077 378,487 384,835 398,108 478,385 437,082 Healthcare facilities 247,052 440,997 468,703 924,795 535,226 412,797 3,910,190 2,804,000 Sealife Center 1,839,836 1,804,367 1,028,302 1,578,315 1,672,365 1,736,147 1,294,636 731,528 Unallocated interest 466,382 371,982 432,438 347,367 306,989 116,906 236,982 1,505,248 Total governmental activities expenses 8,653,920 9,318,844 8,933,471 10,608,662 10,674,164 10,646,893 13,105,644 12,901,285 Business -type activities: Electric 5,926,703 6,419,925 6,863,724 9,195,187 8,029,054 8,626,745 10,363,820 8,569,240 Water 1,346,099 687,542 760,363 813,245 859,799 1,194,311 1,066,860 1,093,419 Wastewater 706,332 705,508 693,096 747,484 901,759 916,909 1,078,318 Harbor 2,441,498 2,282,991 2,402,810 2,648,290 2,457,216 3,006,069 3,934,866 5,947,066 Seward Marine Industrial Center 1,541,608 1,591,311 1,521,930 1,278,774 1,076,730 1,149,453 990,466 926,290 Parking 75,983 95,209 112,013 117,150 129,623 119,723 118,309 157,229 Total business -type activities expenses 11,331,891 11,783,310 12,366,348 14,745,742 13,299,906 14,998,060 17,391,230 17,771,562 Total primary government expenses 19,985,811 21,102,154 21,299,819 25,354,404 23,974,070 25,644,953 30,496,874 30,672,847 Program Revenues Governmental activities: Charges for services: General government 468,421 276,173 61,798 106,589 400,074 196,240 223,545 201,335 Public safety 683,916 737,338 687,763 761,316 706,575 669,988 744,939 682,906 Public works 149,464 116,742 219,843 239,984 111,756 116,833 84,849 168,196 Parks and recreation 471,396 548,283 565,168 529,289 592,063 627,038 622,067 608,361 Library 8,144 8,218 8,601 8,677 7,736 12,800 14,799 13,794 Healthcare facilities 2,569,886 Operating grants and contributions 182,090 112,945 157,809 148,785 680,176 84,144 542,354 620,310 Capital grants and contributions 146,170 1,053,026 880,372 2,124,245 1,459,744 999,171 2,860,172 1,709,977 Total governmental activities program revenues:2,109,601 2,852,725 2,581,354 3,918,885 3,958,124 2,706,214 5,092,725 6,574,765 Business -type activities: Electric 6,539,213 6,943,720 7,381,178 7,979,436 8,428,106 8,565,180 9,060,636 8,842,150 Water 1,445,553 769,970 1,019,832 1,008,765 996,633 998,541 972,713 1,034,888 Wastewater 702,770 791,988 811,546 800,168 801,095 796,454 851,416 Harbor 1,795,350 1,818,674 1,943,424 2,499,065 2,751,916 2,776,676 2,596,924 2,803,828 Seward Marine Industrial Center 330,249 318,009 324,828 286,640 290,221 304,517 263,775 296,139 Parking 114,008 167,101 177,098 175,792 182,133 240,339 162,120 192,046 Operating grants and contributions 1,260,476 65,247 159,595 445,228 2,674,610 Capital grants and contributions 429,796 722,130 3,149,335 928,554 2,578,739 2,769,005 2,354,601 1,988,430 Total business -type activities program revenues 10,654,169 11,442,374 14,787,683 14,950,274 16,093,163 16,614,948 16,652,451 18,683,507 Total primary government program revenues 12,763,770 14,295,099 17,369,037 18,869,159 20,051,287 19,321,162 21,745,176 25,258,272 Net (expenses)/revenue: Governmental activities 6,544,319)6,466,119)6,352,117)6,689,777)6,716,040)7,940,679)8,012,91.9)6,326,520) Business -type activities 677,722)340,936)2,421,335 204,532 2,793,257 1,616,888 738,779)911,945 Total primary government net expense $ (7,222,041) (6,807,055) (3,930,782) (6,485,245) 3,922,783) (6,323,791) (8,751,698) 5,414,575 Note: GASB 34 conversion took place in 2003. Prior year net asset information is not available. 139 Table 2, continued CITY OF SEWARD Changes in Net Assets Last Eight Fiscal Years accrual basis of accounting) continued Note: GASB 34 conversion took place in 2003. Prior year net asset information is not available 140 2003 2004 2005 2006 2007 2008 2009 2010 General Revenues and Other Changes in Net Assets Governmental activities: Taxes: Sales tax 2,894,455 3,123,314 3,411,283 3,518,435 4,068,600 4,137,758 3,585,304 3,742,751 Property tax 670,297 973,948 802,539 864,906 862,258 943,832 986,473 960,397 Othertax 77,135 89,473 381,270 388,284 419,771 442,130 370,235 403,713 Grants and entitlements 462,249 324,452 339,074 388,766 538,799 1,354,871 670,761 753,653 Investment earnings 151,035 170,179 218,102 436,241 314,642 612,611 128,971 138,940 Other 4,754,704 882,501 287,018)1,622,052 347,281 Transfers 816,854 857,313 1,279,903 1,502,583 989,801 912,319 1,466,933 1,258,053 Special item - write -off NPO /OPEB 504,917 Total governmental activities 9,826,729 6,421,180 6,432,171 6,812,197 7,193,871 8,908,438 8,830,729 7,604,788 Business -type activities: Investment earnings 139,432 116,165 323,821 650,078 651,763 640,277 184,566 149,288 Grants and entitlements 713,178 771,065 720,040 Other 71,125 22,555 362,218 139,952 5,000 Transfers 816,854)857,313)1,279,903)1,502,583)989,801) (912,319)1,466,933)1,258,053) Total business -type activities 606,297)718,593)593,864)852,505)338,038)581,088 511,302)383,725) Total primary government 9,220,432 5,702,587 5,838,307 5,959,692 6,855,833 9,489,526 8,319,427 7,221,063 Changes in Net Assets Governmental activities 3,282,410 44,939)80,054 122,420 477,831 967,759 817,810 1,278,268 Business -type activities 1,284,019)1,059,529)1,827,471 647,973)2,455,219 2,197,976 1,250,081)528,220 Total primary government 1,998,391 1,104,468)1,907,525 525,553)2,933,050 3,165,735 432,271)1,806,488 Beginning Net Assets 137,884,486 139,882,877 138,778,409 140,685,934 140,160,381 143,093,431 146,259,165 145,826,894 Ending Net Assets 139,882,877 138,778,409 140,685,934 140,160,381 143,093,431 146,259,166 145,826,894 147,633,382 Change in Net Assets 1,998,391 1,104,468)1,907,525 525,553)2,933,050 3,165,735 432,271)1,806,488 Note: GASB 34 conversion took place in 2003. Prior year net asset information is not available 140 M H b bq w r, O U o N U bO w i 00 00 I OM n . Q\ Io M 0 N O h N o N N In 00 00 M O N O N W)i N M In N 00 00 O I N M In O O N In 00 O m knO 0 0 O O 00 N I o0 00 N N In O N M In n . Q\ Io M 69 69 b b•a3 w U v U r I U L V 0 C, O 'n m m o N N In vi m N rl- kn m n oMo t o 00 o m In M In M N M M O In rn In In In M_ O N 00 O oo O [ 00 N o O Mkno 0 n IPl In n O O [- o0 In - I N O N llO Cl 0o In 00 [ C 'n O 69 69 69 C w Y b O 1: >~ q R a U C O Y Y Q H H 141 0 0 0 0 M M In o O o0 00m oo In ry 1 1 0 0 0 0 O M o0 O 00 N N N n n 0 0 0 0 1 1 1 0 0 0 0 N In O i 1 0 0 0 0 0o In N O 0 0 0 0 M N Mi 0 0 0 0 06 In In C N 0 0 0 0 N M 00 116 [ M i 1 I w a dp bQ Lei bQ bQ F{""y cl a N NU . O a w a a o a 0 N N In 00 00 M O O 0 W)i N M In 00 00 O I N N 69 69 b b•a3 w U v U r I U L V 0 C, O 'n m m o N N In vi m N rl- kn m n oMo t o 00 o m In M In M N M M O In rn In In In M_ O N 00 O oo O [ 00 N o O Mkno 0 n IPl In n O O [- o0 In - I N O N llO Cl 0o In 00 [ C 'n O 69 69 69 C w Y b O 1: >~ q R a U C O Y Y Q H H 141 0 0 0 0 M M In o O o0 00m oo In ry 1 1 0 0 0 0 O M o0 O 00 N N N n n 0 0 0 0 1 1 1 0 0 0 0 N In O i 1 0 0 0 0 0o In N O 0 0 0 0 M N Mi 0 0 0 0 06 In In C N 0 0 0 0 N M 00 116 [ M i 1 I w a dp bQ Lei bQ bQ F{""y cl a N NU . O a w a a o a t N p H C, M r- O O 00 V) .--a I 01 — 00 I M I N I M V1 I N m O 00 00 r- . 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M lO 7 O 7 N l_ .--• h .--. 00 N 7 .--• O M -- a h l .--• M Cl c ' U C } vj } O N o0 O l 00 Vi O h V 00 oo N oo N N Fy W U p O Vl M N h M h oOO, O N '1 00 O Vl r o0 M M O yy .d c l N N N O, O O t ON M M ON M t ov N t O, Cl O l N .--y ON N vn v) O c M 00 00 rY O O l- O O O V O l_ O r, M lO O O, 00 .--a oo t o0 l O M O l 00 h O, V1 N r- O O l t M 00 M N oo O\ N O\ oo M M O\ 01 O N M O N w) oo O o0 N r Cl N 00 u N M M N oo O o0 M Vl t` N Vl O, t V) N cl cl Lr N Vl 00 r_ M ' Vl l ' O r_ t M O o0 00 O N p Vi Oi O M t O O N t M oo N N oo V1 h O, t h r p t O l 00 00 O t` t` N O S M t o0 N oo It O M O, N t O N b9 o0 00 00 O N _ h N M O, N _ O -. e N V1 O, O, N 'O N M t O, M O r- M M t r- N t O 8 00 t r_ lO t M Cl Vl 00 ' Vl O ' O, O t` r_ O O o0 00 O O h .--a M o0 N -- oo M O r- c Vl O O O h t O O V1 M O t l .--a .-a Oo N M t .--y O, V1 N l O, M N N O, oo .--a v ~ h c 69 b9 b9 b9 cj S p 61 bA .O cd U p a1-ii q U p FL d ^ > a> •v, > ' , ti w v '' ai P. C Oal '+ b is aki v ro b ~ v ,, U R7 U ^ C w w O a4i CQ bq CQ P. 0 ' ca a H w H w o H z owz Q 142 I N H U O W N U ww w U a N U 143 00 p O p r-O M 00 00 rl-00 l-C1 00 00 110 o0 00 C1 O O U cd 6 Ef3 00 O O O r C O zl O y 00 O 00 m r—O V) G 00 O 0 V N M O 00 m r 144 cd U N 00 01 N O M C1 O O 00 N O O N 00 N O 69 G r--i O Q1 N O M i r 00 00 00 O M O 00 N U C1 C1 00 C1 O 01 kf) 6 O bA C N 69 00 O 00 M M 01 00 0 0 O 0 01 C1 01 O N N00 N 6F} 00 O M M O 01 O O N M a1 •-- O O b+S N bA O O O O O O O O O O N W 143 Table 6 CITY OF SEWARD General Fund Tax Revenues by Source Last Ten Fiscal Years Payments - Fiscal Property in- Lieu -of- Hotel/Motel Year Tax Sales Tax (1) Tax (2) Tax (3) Other (4) Total 2001 $663,747 $2,165,586 $872,749 $209,458 $2,016 $3,913,556 2002 712,175 2,250,081 862,954 217,482 3,284 4,045,976 2003 670,297 2,671,613 77,586 215,145 3,226 3,637,867 2004 745,901 3,123,314 89,926 239,660 2,863 4,201,664 2005 787,503 3,411,283 96,614 284,656 1,804 4,581,860 2006 847,875 3,518,435 77,714 310,570 1,479 4,756,073 2007 873,513 4,068,600 76,609 343,162 1,381 5,363,265 2008 953,957 4,137,758 80,126 362,004 1,236 5,535,081 2009 975,687 3,585,304 84,922 285,313 1,329 4,932,555 2010 954,687 3,742,751 75,317 328,396 1,003 5,102,154 1) Effective July 1, 2003, sales tax rate increased from 3% to 4 %. 1/4 of all sales tax revenue is transferred out of the General Fund to the Debt Service Fund to pay healthcare debt and capital costs. 2) Beginning 2003, GASB Statement No. 34 requires inter -fund payments -in- lieu -of -tax to be classifed as transfers rather than revenues. From 2003 forward, PILT reflects external payments only. 3) The hotel /motel tax rate is 4 %. 4) Represents tax - related penalties and interest. 144 Table 7 CITY OF SEWARD Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years Per $1,000 of Assessed Value) Fiscal Borough KPCC Flood Year City 1)2)Service (3)Total 2001 3.12 7.00 0.10 0.00 10.22 2002 3.12 6.50 0.10 0.00 9.72 2003 3.12 6.50 0.10 0.00 9.72 2004 3.12 6.50 0.10 0.50 10.22 2005 3.12 6.50 0.10 0.50 10.22 2006 3.12 6.50 0.10 0.50 10.22 2007 3.12 5.50 0.00 0.50 9.12 2008 3.12 4.50 0.00 0.50 8.12 2009 3.12 4.50 0.00 0.50 8.12 2010 3.12 4.50 0.00 0.50 8.12 1) Includes Kenai Peninsula Borough only. 2) Kenai Peninsula Community College. 3) Seward /Bear Creek Flood Service Area created effective 2004. Source: "Alaska Taxable, 2010" 145 001 N H 146 bn 0 0 N N N U O 4-C 6>M 00 r M O O O a 01 O C-4 M M M Fil A 00 C1 I:t r N 10 I:t C n O\O\r-r-N N 01 N O t t 00 00 O H O A 00 00 00 O \p U C1 00 01 0 O 00 00 M N V O 01 M M 00 00 00 C a>N C v N N O 00 kr 00 00 C d p,,U C7 7t Zt 10 Cl)1 M N N U c U O I:t rl-00 00 01 O N M 00 I:t N H V7 O 4 O y N A m 0 M M 00 I:t M O H b9 i C v N N N N N N N N N N w 001 N H 146 bn 0 0 N N N U O H 0O CIS O c cd H wO O 3> W U w O Q N W b bO Q W o C, kn .o kn h o -It o, n kr) It k rn rn y C 00 00 00 N 00 m 00 00 00 00 00 a0 00 a0 a0 t m00 00 00 00 00 O y d C1 (7 C1 c1 c1 C1 a0 a0 a0 U F" to b 0 0 0 0 0 0 0 0 0 0 O Vn kn kn kn Vl Vl Vl kn Vl O it A U 6 M M fr'1 M M M M M M M Y cd F., O 147 M O O 00 m m N a, O, O hM c O M O N O r+ O M Okr)Itvn h 00 - N W U N N N N N M M M M M O 69 01 Vl kn 00 Cl kn ID O1 h M= M a0 N= O NN00OnSON A O k O CC a, (5 h N o r- h kn .D N kn N N N N N N N N M M 69 a; C; r- m N oo N o0 O W u h h D h DD O1 O O O O O Q 69 C tt kn in oo rn kn .c rn CC M V') kn O\ 00 00 O O1 kn -- - 6 kn kn in .D .D h h oo h o0 hh i 69 lu 9 O ® O O 9 O O ® O O N 00 O m N 00 O\ 00 O DD M M O in oo O 6 C; N r- a, a, N N N zt R .O 69 01 M M kn N DD r+ kn CC o N - m N o0 N h O M DD O1 kn kn kn .c NNNN 69 it O O O O O O O O O O O O O O O 147 H b N A O a N U •° Q a U 148 C7,o O U N to m cn cn N O x M C)N 00 vi N O O O -- 01 O O O N 00 O 110 00 to y OM01Oto00 [-- O N C1 O 110 NOUOIN0 , ,0 0 N N O1 O 00 MO00N (-- N 00 M M O W 69 69 N bA CG Ip N IO 00 In In N N In M U O CD "I M to N s 69 69 U O N SA M c bD bD bD o o bQrl bDbD N O vi Op un cd p U bA 0c0 cd cd +cd n c Oo cd O cd U ct v > cds•. cd O N UOypO x y t U 1 p v) O O a s, cd cd N x d U +N N oU N O C7 N W sU, N 148 Table 11 CITY OF SEWARD Principal Taxable Sales by Line of Business December 31, 2010 Percent of FY10 Taxable Total Taxable Type of Business Sales (1) Sales (2) Retail Trade 40,294,830 41.5% Guiding Water 16,764,212 17.3% Restaurant/Bar 9,860,749 10.2% Hotel /Motel/Bed & Breakfast 9,298,393 9.6% Public Administration 6,792,903 7.0% Wholesale Trade 4,782,823 4.9% Information 2,869,970 3.0% Services 1,248,602 1.3% Rental Residential Property 1,152,859 1.2% Manufacturing 1,065,005 1.1% Other 2,969,418 3.1% 97,099,764 100% 1) Taxable sales for 2010 are $97,099,764. Source: Kenai Peninsula Borough EDD. 2) Total sales tax revenue in 2010 was $3,742,751. 149 ro H UO. H W O Q I ro U a O O W ro o0 Vi 00 00 mf• ti' 00 m t— mil mil M o0 Cd O O O U a DD k 69 0 0 0 0 0 0 O O O o0 - o0 - - - - O 00 c M O o0 N o0 O O M O Y c H a N N N N V1 f• ti' Cd Cd M 0-, f• M O 01 OC7 O p ti' N d C GQ M Vi N ti• O O p - ommm v Vi O o0 O N f• M F" 69 o0 N l- l N vi l vi f• m O M M l- O O o0 vi O l— ti' l- O O c c — O 'ti' DD M a I'D t h O h Q, M M M N 69 c 00 O O ajdU O N 00 O U 00 c 0 0 0 0 0 0 0 0 0 0 U 0 0 0 0 0 0 0 0 0 0 rn 0 0 0 0 0 0 0 0 0 0 A `b O O vi 'n O O vi vi O U Q l ti• O v'i Q ti• O N kn M vi vi vi kn O O kr H' 64 N c7 00 00 Vc M N C7 Q1 o0 00 p N l— O "' Q V'1 M N •-• •-• N N 00 O 00 00 Q, - th , o0 - th O A 00 m O N o0 M N O 69 00 r- O O v v1 N h ca r -t 69 N M c vi N In O c M l v1 00 l— f^ O O O Q;, v1 c l 00 C N ri O m O 00 "O r W vi vi ss 69 Nt 0 0 0 0 0 0 0 0 0° 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N CdCd O tw 0 b Cd 3 O. N O d OU U C 0 U a a ro . U b ro U U O U ro ° ro v U O C O • 'O O 0. N 0 0 -. 0 U M C W Q r+ Cd E A O C] i2 9 > Q a U U v Q O cd O Q b N O U U O coo 150 N M c vi N In O c M l v1 00 l— f^ Q;, v1 c l 00 C N ri O m O 00 "O r W vi vi ss Nt 0 0 0 0 0 0 0 0 0° 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N CdCd O tw 0 b Cd 3 O. N O d OU U C 0 U a a ro . U b ro U U O U ro ° ro v U O C O • 'O O 0. N 0 0 -. 0 U M C W Q r+ Cd E A O C] i2 9 > Q a U U v Q O cd O Q b N O U U O coo 150 Amounts expressed in thousands. 1) Alaska Department of Commerce, Community & Economic Development 2) From Table 9 (expressed in thousands) 3) Amount does not include revenue bonds Source: Kenai Peninsula Borough and State of Alaska, "Alaska Taxable 2010" 151 Table 13 CITY OF SEWARD Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt per Capita Last Ten Fiscal Years Ratio of Debt Net Payable Bonded Net Gross from Net Debt to Bonded Fiscal Population Assessed Bonded Enterprise Bonded Assessed Debt per Year 1)Value (2)#Debt (3)#Revenues #Debt #Value Capita 2001 2,759 210,741 10,775 2,651 $8,123 3.85%2,944 2002 2,754 214,598 9,680 1,989 7,690 3.58%2,792 2003 2,794 216,698 8,610 1,387 7,223 3.33%2,585 2004 2,745 223,202 7,735 665 7,070 3.17%2,576 2005 2,540 247,173 6,870 521 6,349 2.57%2,500 2006 2,606 263,529 5,950 374 5,576 2.12%2,140 2007 2,627 278,153 4,960 222 4,738 1.70%1,804 2008 2,661 292,802 4,185 169 4,016 1.37%1,509 2009 2,609 301,784 3,360 114 3,246 1.08%1,244 2010 2,693 311,277 2,485 59 2,426 0.78%901 Amounts expressed in thousands. 1) Alaska Department of Commerce, Community & Economic Development 2) From Table 9 (expressed in thousands) 3) Amount does not include revenue bonds Source: Kenai Peninsula Borough and State of Alaska, "Alaska Taxable 2010" 151 Table 14 CITY OF SEWARD Computation of Direct and Overlapping Bonded Debt December 31, 2010 Jurisdiction Direct: City of Seward Overlapping: Kenai Peninsula Borough (KPB) Net General Obligation Bonded Debt Outstanding 2,425,970 (1) 36,994,000 (2) 39,419,970 Percentage Applicable to Seward 100% 5.5% (3) Amount Applicable to City of Seward 2,425,970 2,025,533 4,451,503 1) Excluding general obligation bonds reported in the Enterprise Funds. 2) Source: KPB finance department. Total $39,164,000 less Central Emergency Services unrelated to Seward. 3) Based on ratio of City of Seward assessed value (real and personal property = $311,277,229) to total assessed value of the Kenai Peninsula Borough ($5,685,114,519) Source: "2010 Alaska Taxable" p. 41, State of Alaska, and KPB main and supplemental tax rolls. Note: Excludes State assessed values which are exempt from taxation at City and Borough level. 152 Table 15 CITY OF SEWARD Legal Debt Margin December 31, 2010 No debt limit mandated by law. 153 Table 16 CITY OF SEWARD Ratio of Annual Debt Service Expenditures for General Obligation Debt (1) to Total General Fund Expenditures Last Ten Fiscal Years 1) General obligation debt reported in the Enterprise Funds, with government commitment, have been excluded. Beginning in 2005, retirement system payments attributed to past service costs are reflected as debt service payments in the General Fund. In 2006, includes a one -time payoff of Seward General Hospital PERS costs in the amount of $1,708,126. Includes General Fund & Hospital Debt Service Fund. 2) Total General Expenditures includes General Fund and Hospital Debt Service Fund. 154 Retirement Past-Ratio of Debt Service Total General Service to Fiscal Cost Total Debt Expenditures General Year Principal Interest Payments Service (1)2)Expenditures 2001 390,005 $467,974 857,979 6,779,450 12.66% 2002 496,723 384,606 881,329 7,391,687 11.92% 2003 527,612 498,415 1,026,027 7 13.28% 2004 955,591 386,182 1,341,773 8,124,329 16.52% 2005 800,927 380,662 164,143 1,345,732 9,042,117 14.88% 2006 892,837 305,202 1,805,475 3,003,514 10,988,362 27.33% 2007 854,977 260,544 293,114 1,408,635 9,514,080 14.81% 2008 738,999 217,444 470,573 1,427,016 10,784,695 13.23% 2009 787,695 195,299 596,907 1,579,901 11,162,373 14.15% 2010 838,386 168,653 529,778 1,536,817 10,404,004 14.77% 1) General obligation debt reported in the Enterprise Funds, with government commitment, have been excluded. Beginning in 2005, retirement system payments attributed to past service costs are reflected as debt service payments in the General Fund. In 2006, includes a one -time payoff of Seward General Hospital PERS costs in the amount of $1,708,126. Includes General Fund & Hospital Debt Service Fund. 2) Total General Expenditures includes General Fund and Hospital Debt Service Fund. 154 1) Total revenues, including interest, exclusive of grants. 2) Total operating expenses exclusive of depreciation and payments in lieu of taxes. 3) Includes principal and interest of revenue bonds only. 4) Revenue bond agreements require Net Revenue Available for Debt Service be at least 1.30 times the amount of the total annual debt service requirement. 155 CITY OF SEWARD Revenue Bond Coverage Electric Enterprise Fund Last Ten Fiscal Years Table 17 Debt Service Requirements (3) Gross Net Revenue Fiscal Revenues Operating Available for Coverage Year 1)Expenses (2)Debt Service Principal Interest Total 4) 2001 6,937,500 $4,479,770 2,457,730 130,000 $163,120 $293,120 8.38 2002 6,903,078 4,636,527 2,266,551 140,000 153,198 293,198 7.73 2003 6,715,607 4,417,052 2,298,555 145,000 144,536 289,536 7.94 2004 7,003,400 5,065,958 1,937,442 155,000 137,184 292,184 6.63 2005 7,542,541 5,539,190 2,003,351 165,000 129,181 294,181 6.81 2006 8,246,477 7,855,990 390,487 210,000 87,500 297,500 1.31 2007 8,709,107 6,651,455 2,057,652 195,000 80,938 275,938 7.46 2008 8,920,730 6,396,886 2,523,844 205,000 175,825 380,825 6.63 2009 9,173,257 8,589,154 584,103 305,000 367,023 672,023 0.87 2010 8,903,337 6,854,897 2,048,440 315,000 353,586 668,586 3.06 1) Total revenues, including interest, exclusive of grants. 2) Total operating expenses exclusive of depreciation and payments in lieu of taxes. 3) Includes principal and interest of revenue bonds only. 4) Revenue bond agreements require Net Revenue Available for Debt Service be at least 1.30 times the amount of the total annual debt service requirement. 155 Table 18 CITY OF SEWARD Revenue Bond Coverage Harbor Enterprise Fund Last Ten Fiscal Years ( *) 1) Total revenues, including interest, exclusive of grants. 2) Total operating expenses exclusive of depreciation and payments in lieu of taxes. 3) Includes principal and interest of revenue bonds only. 4) Revenue bond agreements require Net Revenue Available for Debt Service be at least 1.20 times the amount of the total annual debt service requirement. 2000 Harbor Enterprise Fund revenue bonds refunded in 2007. Bonds were issued in 2005 in the amount of 1.5 million for float construction and in 2006 in the amount of $4.5 million for expansion of the south harbor. 156 Debt Service Requirements (3) Net Revenue Gross Operating Available Revenues Expenses for Debt Coverage Fiscal Year 1)2)Service Principal Interest Total 4) 2001 $1,811,896 $1,132,855 679,041 132,098 $132,098 5.14 2002 1,752,202 1,214,763 537,439 90,000 158,518 248,518 2.16 2003 1,837,517 1,192,187 645,330 90,000 153,568 243,568 2.65 2004 1,864,318 1,149,701 714,617 95,000 148,618 243,618 2.93 2005 2,002,229 1,310,211 692,018 105,000 150,542 255,542 2.71 2006 2,752,802 1,388,971 1,363,831 110,000 293,848 403,848 3.38 2007 2,905,013 1,472,842 1,432,171 310,000 376,504 686,504 2.09 2008 2,896,828 1,506,685 1,390,143 325,000 374,203 699,203 1.99 2009 2,632,937 1,903,985 728,952 340,000 356,540 696,540 1.05 2010 2,850,942 1,784,887 1,066,055 360,000 337,990 697,990 1.53 1) Total revenues, including interest, exclusive of grants. 2) Total operating expenses exclusive of depreciation and payments in lieu of taxes. 3) Includes principal and interest of revenue bonds only. 4) Revenue bond agreements require Net Revenue Available for Debt Service be at least 1.20 times the amount of the total annual debt service requirement. 2000 Harbor Enterprise Fund revenue bonds refunded in 2007. Bonds were issued in 2005 in the amount of 1.5 million for float construction and in 2006 in the amount of $4.5 million for expansion of the south harbor. 156 a, a 2 U U O O Cd W O U W F64 d w O U s: Cl) 11 U cd bA U Q Cd O U O N N O w b 3 U 4-O U 157 a Q. O OU Up a1 10 M M N N b a U n 00 00 0 t O l--0 00 3 p O N a1 a1 00 N kn 01 r'- OpQr N U a1 It 1 0 It Or, 00 01 01 01 01 01 M M M M M M M M M M c) Q.s: bA i 7 O O 0 00 O O N kn 01 Cd 01 O 01 M 00 O 01 00 N NcdO000Oo000crNMkn0001bAUC U 64 U N cn 71 00 00 l O o0 r 00 M In l,N cn u kn N O a1 M M o0 c 00 01 01 l M S",01 N O M 01 kn pD0000rr000001OO n O o V N O M 01 V 0o00 M oo llr--N o tt cd U kn kn kn N U O c O CJ CA a1 O a1 M cd C o o o o o O 1 Ocl4 U U U 0 0 0 0 0 0 0 0 0 0 Q Cd 0 0 0 0 0 0 0 0 0 Q Cd O U O N N O w b 3 U 4-O U 157 CITY OF SEWARD Principal Employers - Current and Nine Years Ago Name Table 20 2010 2001 Rank Rank State of Alaska (includes University of Alaska)1 1 Icicle Seafoods 2 5 Providence Seward Medical & Care Center 3 City of Seward 4 4 Alaska Sealife Center 5 6 Kenai Peninsula Borough School District 6 10 Shoreside Petroleum 7 Safeway, Inc.8 8 United States Government 9 3 CIRI Alaska Tourism Corporation 10 2 Cook Inlet Processing 9 Resurrection Bay Tours 7 Source: Alaska Department of Labor and Workforce Development, Research and Analysis 158 N N H w N O0CliN A U W W N H w 159 O O O O O O O O O O O O H O O O O O O O O O O O 00 O O O O O 00 C)C NC 0 0 0 r Or O O V)O O I1 M O N Cl N O O N O O o0 OIO N N O O O p O In O O O o0 O N 00 N 0 C',O O m N O O 00 00 N It O O N N N p N M •--N M 00 1 N O M O N N O O C7 cn Q U kt Uvca o o O o O a o v 159 NN O U w ai w O w O H oct V a N 0 i.i d 160 M M 01 N r- V'1 (- 00 O O 00 O N N 00 N N 00 Oey V'1 M 00 O 00 V'N 00 Vl 00 01 00 N O 01 N N O 01.E O1 p M M 00 O O O N V'1 O 00 V'1 00 't 00 (-. M M O O O 00 01 00 [-.01 O 01 O O kn N V'1 N V'1 00 \0 \n N 00 00 O \0 00 M kn i M M M M O 01 00 00 ( kn p M N \0 00 N N 01 00O 01 00 1.0 Vl N N M 00 M M 00 00 00 V'1 01 p O N N N 00 N M 0 N 0000 00 N N U bU M 00 00 V'1 O 00 V'1 i 00 M 00 00 Np M M o0 N O w O 00 U N 00 N M O V'1 a U 00 00 O N --i M O M 00 M `O OO V'1 V'1 000000 cC bb N pi N O V O O d 1:N 00 3 bio bb a3 bb3n a c °' oo, o mOO ti w O U v o o Uoc Ct T en 3 oa "a mz ZZC7wa 3cacn z° e 160 M N N f O U N U w U N U a U N d d N 4- O U U 0 N N n N n r O 00 N C1 01 N n M O NN N n O 00 N C1 r 01 N n M O kn N NN N n n N C1 l 01 N m M N N M M N M n N C1 r 00 N kn M M C kn N N n N C1 r 00 N kn M CM M N C1 kn N N n M p M 00 N N N O rO•O Cd N U O B cn N waU5 Iaz z 161 N d d N 4- O U U 0 CITY OF SEWARD Property Value, Construction, and Bank Deposits Last Ten Fiscal Years Table 24 Total Real Fiscal Property Year Value (1) Commercial Construction Number of Value of Permits Permits Residential Construction Number of Value of Bank Permits Permits Deposits 2000 167,589,200 23 1,982,065 36 1,469,000 $45,217,355 2001 172,127,800 27 1,922,767 21 794,214 46,527,000 2002 175,990,700 31 4,888,627 31 883,708 42,577,128 2003 175,842,600 34 6,611,765 25 1,453,898 47,679,000 2004 191,098,900 29 15,080,750 28 2,645,400 54,006,361 2005 198,141,000 21 888,820 33 1,974,323 56,467,873 2006 220,649,800 36 24,332,857 22 1,204,392 59,374,764 2007 226,885,700 20 22,555,446 17 589,254 59,042,303 2008 229,373,700 14 903,500 16 1,928,879 60,821,068 2009 244,392,800 31 18,694,201 24 966,926 54,337,541 2010 242,037,200 36 4,376,321 15 941,261 57,426,000 1) Estimated actual value from Table 9. Source: Construction Data - City of Seward Engineering Department Bank Deposit Data - Local Banks (First National Bank of Anchorage and Wells Fargo) 162 Table 25 CITY OF SEWARD Miscellaneous Statistics December 31, 2010 Date of Incorporation June 1, 1912 Class Home Rule City Form of Government Council / Manager Area, Square Miles 22 Miscellaneous Operational Statistics: 25 Library - number of volumes 31,948 Fire Department - Number of volunteers 28 Sewer System - Maximum daily capacity (gallons)1,300,000 Water System - Maximum daily capacity (gallons)8,856,000 Electric System: 172 Miles of distribution lines 65 Miles of transmission lines 42 Harbor - Number of permanent slips 670 City Employees: 38 Regular Employees - Full -time equivalent 93.18 Temporary Employees - Full -time equivalent 12.46 Demographics: 6 School Enrollment, City of Seward (3)549 Unemployment Rate - Borough -Wide (1)10.0% Population (2)2,693 Average annual earnings (4)39,294 Qualified Voters 1,868 Facilities and Services not included in the reporting entity: Education: Elementary School Number of students enrolled 281 Number of teachers 25 Middle School Number of students enrolled 96 Number of teachers 8.50 High School Number of students enrolled 172 Number of teachers 11.50 Alaska Vocational Technical Center Number of students served annually 1,485 Number of teachers 38 Healthcare Facilities - a component unit of the reporting entity: Providence Seward Medical & Care Center Number of patient beds (6) combination of primary care & swing beds 6 Number of long -term care beds 40 Number of employees: Exempt 10 Non - Exempt 127 1) Kenai Peninsula Borough 2) State of Alaska, Department of Commerce, Community & Economic Development 3) Kenai Peninsula Borough School District 4) Kenai Peninsula Borough information extrapolated by Seward's population 163 This page left blank intentionally) 164 Mi An Independently Owned Member M C6A4REY ALLIANCE @ NIcCladrey Cottrell & Co. Certified Public Accountants & Consultants Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Honorable Mayor and City Council City of Seward, Alaska 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 Seward, Alaska as of and for the year ended December 31, 2010, which collectively comprise City of Seward's basic financial statements and have issued our report thereon dated June 14, 2011. Our report was modified to include a reference to other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Other auditors audited the financial statements of Providence Seward Medical Center, as described in our report on City of Seward's financial statements. The financial statements of Providence Seward Medical Center were not audited in accordance with Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. 165 3601 "C" Street, Suite 600 * Anchorage, Alaska 99503 * (907) 278 -8878 * Fax (907) 278 -5779 * www.mcc- cpa.com Honorable Mayor and City Council City of Seward, Alaska Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the City of Seward's management, Honorable Mayor and City Council, others within the entity, federal and state awarding agencies and, if applicable, pass - through entities, and is not intended to be and should not be used by anyone other than these specified parties. Anchorage, Alaska June 14, 2011 166 Mikunda, Cottrell & Co.,,.,. Certified Public Accountants & Consultants A, Independently Owned Member MCGL ADREV ALLIANCE i I McGladrex/ Independent Auditor's Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A -133 Honorable Mayor and City Council City of Seward, Alaska Compliance We have audited the compliance of City of Seward with the types of compliance requirements described in the OMB Circular A -133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2010. City of Seward's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of City of Seward's management. Our responsibility is to express an opinion on City of Seward's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A- 133, Audits of States, Local Governments, and Non - Profit Organizations. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Seward's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City of Seward's compliance with those requirements. In our opinion, the City of Seward complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 2010. 167 3601 "C" Street, Suite 600 x Anchorage, Alaska 99503 * (907) 278 -8878 * Fax (907) 278 -5779 * www.mcc- cpa.com Honorable Mayor and City Council City of Seward, Alaska Internal Control Over Compliance The management of City of Seward is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered City of Seward's internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, and to test and report on internal control over compliance in accordance with OMB Circular A -133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Seward's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of City of Seward's management, Honorable Mayor and City Council, federal awarding agencies, and pass - through entities, and is not intended to be and should not be used by anyone other than these specified parties. Anchorage, Alaska June 14, 2011 168 Mi An In dependetly Owned Member 7 M .aCGDREv ALLIANCE Mc:Claclrev QR Cottrell & Co Inc. Certified Public Accountants & Consultants Independent Auditor's Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Mayor Program and on Internal Control Over Compliance in Accordance with the State ofAlaska Audit Guide and Compliance Supplement for State Single Audits Honorable Mayor and City Council City of Seward, Alaska Compliance We have audited the compliance of City of Seward with the types of compliance requirements described in the State of Alaska Audit Guide and Compliance Supplement for State Single Audits that are applicable to each of its major state programs for the year ended December 31, 2010. City of Seward's major state programs are identified in the accompanying Schedule of State Financial Assistance. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major state programs is the responsibility of City of Seward's management. Our responsibility is to express an opinion on City of Seward's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the State ofAlaska Audit Guide and Compliance Supplement for State Single Audits. Those standards and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major state program occurred. An audit includes examining, on a test basis, evidence about City of Seward's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of City of Seward's compliance with those requirements. In our opinion, City of Seward complied, in all material respects, with the requirements referred to above that are applicable to each of its major state programs for the year ended December 31, 2010. 3601. "C" Street, Suite 600 * Anchorage, Alaska 99503 * (907) 278 -8878 * Fax (907) 278 -5779 * www.mcc- cpa.com Honorable Mayor and City Council City of Seward, Alaska Internal Control Over Compliance The management of City of Seward is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to state programs. In planning and performing our audit, we considered City of Seward's internal control over compliance with the requirements that could have a direct and material effect on a major state program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, and to test and report on internal control over compliance in accordance with the State of Alaska Audit Guide and Compliance Supplement for State Single Audits, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Seward's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a state program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a state program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of City of Seward's management, Honorable Mayor and City Council, and the State of Alaska and is not intended to be and should not be used by anyone other than these specified parties. Anchorage, Alaska June 14, 2011 170 CITY OF SEWARD Schedule of Findings and Questioned Costs Year Ended December 31, 2010 I. Summary of Auditor's Results Financial Statements Type of auditor's report issued Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified that are not considered to be material weakness(es)? Noncompliance material to financial statements noted? Federal Financial Assistance Internal control over major programs: Material weakness(es) identified? Significant deficiency(ies) identified that are not considered to be material weakness(es)? Type of auditor's report issued on compliance for major programs? Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A -133? Unqualified yes X no yes X none reported yes X no yes X no yes X none reported Unqualified yes X no Identification of major programs: Agency CFDA Number Name of Federal Program or Cluster Environmental Protection Agency Department of Education 66.468 Drinking Water Loan (ARRA) 84.397 Community Economic Stimulus Program (ARRA) Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low -risk auditee? State Financial Assistance Internal control over major programs: Material weakness(es) identified? Significant deficiency(ies) identified that are not considered to be material weakness(es)? 171 300,000 X yes no yes X no yes X none reported CITY OF SEWARD Schedule of Findings and Questioned Costs, continued Summary of Auditor's Results, continued State Financial Assistance, continued Type of auditor's report issued on compliance for major programs? Unqualified Dollar threshold used to distinguish a state major program? II. Financial Statement Findings IN noted. III. Federal Award Findings and Questioned Costs None noted. IV. State Award Findings and Questioned Costs none noted. 75,000 172 CITY OF SEWARD Summary Schedule of Prior Audit Findings Year Ended December 31, 2010 Federal There were no prior year audit findings. State of Alaska There were no prior year audit findings. 173 CITY OF SEWARD Corrective Action Plan Year Ended December 31, 2010 There are no current year findings; therefore no corrective action plan is required. 174