HomeMy WebLinkAbout1987CAFRr
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COMPREHENSIVE ANNUAL
FINANCIAL REPORT
OF THE
CITY OF SEWARD, AIASKA
Year Ended June 30, 1987
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Harry E. Gieseler
Mayor
Ronald A. Garzini
City Manager
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Prepared By
Department of Finance
Robert Peirson
Director of Finance
and Administrative Services
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PART I
INTRODUCTORY SECTION
COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF SEWARD, ALASKA
For the Fiscal Year Ended June 30, 1987
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . 2- 4
Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . 5-14
Organization Chart . . . . . . . . . . . . . . . . . . . . . . . . . 15
Organization and Principal City Officials . . . . . . . . . . . . . 16
FINANCIAL SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Auditor's Report . . . . . . . . . . . . . . . . . . . . . . . . . . 18 -19
General Purpose Financial Statements . . . . . . . . . . . . . . . . 20
Combined Balance Sheet - All Fund Types and Account Groups . . 21 -22
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types . . . . . . . 23 -24
Statement of Revenues, Expenditures and Changes in Fund
Balance, Budget and Actual - General Fund . . . . . . . . . . 25
iCombined Statement of Revenues, Expenses and Changes in
Retained Earnings, All Proprietary Fund Types -
Enterprise Funds . . . . . . . . . . . . . . . . . . . . . 26
Combined Statement of Changes in Financial Position
All Proprietary Fund Types - Enterprise Funds . . . . . . . . 27
Notes to Financial Statements . . . . . . . . . . . . . . . . . 28 -41
Financial Statements of Individual Funds
Statements and Schedules . . . . . . . . . . . . . . . . . . . . 42
General Fund . . . . . . . . . . . . . . . . . . . . . . . . . 43
BalanceSheet . . . . . . . . . . . . . . . . . . . . . . . . . 44
Statement of Revenues, Expenditures and Changes
in Fund Balance, Budget and Actual . . . . . . . . . . . . . 45 -48
Capital Projects Funds . . . . . . . . . . . . . . . . . . . . . . 49 -50
Combining Balance Sheets . . . . . . . . . . . . . . . . . . . . 51 -52
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances . . . . . . . . . . . . . . . . 53 -54
Project to Date - Schedule of Construction Projects . . . . . . 55 -56
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF SEWARD, ALASKA
For the Fiscal Year Ended June 30, 1987
TABLE OF CONTENTS (CON'T.)
a e
Seward Marine Industrial Center
Combining Balance Sheet . . . . . . . . . . . 57 -58
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances . . . . . . . . . . . . . 59 -60
Project to Date - Schedule of Construction
Projects . . . . . . . . . . . . . . . . . . . . . . . 61 -62
Enterprise Funds - Water /Sewer, Electric, Harbor and
Hospital Funds . . . . . . . . . . . . . . . . . . . . . . . . . 63
Combining Balance Sheet - All Proprietary Fund Types . . . . . 64 -65
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings . . . . . . . . . . . . . . . 66 -67
Combining Statement of Changes in Financial
Position - All Enterprise Funds . . . . . . . . . . . . . . 68 -69
Fiduciary Fund - Deferred Compensation Fund . . . . . . . . . . . . 70
Statement of Changes in Assets and Liabilities . . . . . . . . 71
General Fixed Assets Groups Accounts 72 iof . . . . . . . . . . . . . .
Schedule of General Fixed Assets by Sources . . . . . . . . . 73
Schedule of Changes in General Fixed Assets -
Equipment, By Function and Activity . . . . . . . . . . . . 74
General Long -term Debt Group of Accounts . . . . . . . . . . . . . 75 N
Schedule of General Long -term Debt . . . . . . . . . . . . . . 76
Schedule of Bonded Indebtedness - All Funds . . . . . . . . . 77 -78
STATISTICAL SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
General Fund Expenditures by Function - Last Ten Fiscal Years . . . 80
General Fund Revenues by Source - Last Ten Fiscal Years . . . . . . 81 -82
Property Tax Levies and Collections - Last Ten Fiscal Years . . . . 83 -84
Assessed and Estimated Actual Value of Taxable Property - I
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . 85 -86
COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF SEWARD, ALASKA
For the Fiscal Year Ended June 30, 1987
TABLE OF CONTENTS (CON'T.)
Property Tax Rates - all Overlapping Governments -
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Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . .
Special Assessment Collections - Since May 29, 1979 (Inception) . . • .
Ratio of Net General Bonded Debt - Last Ten Fiscal Years . . . . . . .
Legal Debt Margin . . . . . . . . . . . . . . . . . . . . . . . . . .
Computation of Direct and Overlapping Debt . . . . . . . . . . . .
Ratio of Annual Debt Service Expenditures - Last Ten Fiscal Years . . .
Demographic Statistics - Last Ten Fiscal Years . . . . . . . . . . . .
Property Value, Construction, and Bank Deposits -
Last Ten Fiscal Years
Local Unemployment Rate . . . . . . . . . . . • • . • • • .
Principal Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous Statistical Data . . . . . . . . . . . . . . . . . . .
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Main Office {907} 224-3331
CITY OF SEWARD • Police (907) 224 -3338
P.O. 90% 167 0 Harbor (907) 224 -3138
SEWARD, ALASKA 99664 •
Fire i907) 224-3445
ielecopier (907) 224.3248
December 2, 1987
The Honorable Mayor Harry E. Gieseler
and Members of the City Council
City of Seward
P. 0. Box 167
Seward, Alaska 99664
Dear Mayor Gieseler and Council:
The Comprehensive Annual Financial Report of the City of Seward, Alaska,
for the fiscal year ended June 30, 1987, is submitted herewith. This report
was prepared by the City's Finance Department. Responsibility for both the
accuracy of the presented data and the completeness and fairness of the
presentation, including all disclosures, rests with the City. We believe the
data, as presented, is accurate in all material aspects. It is presented in a
manner designed to fairly set forth the financial position and the results of
operations of the City as measured by the financial activity of its various
funds. All disclosures necessary to enable the reader to gain the maximum
understanding of the City's financial activity have been included.
Scope of ese
e
This report covers all funds and financial transactions of the City. The
report is divided into three sections: An Introductory Section, which
contains a list of principal City officials, an organizational chart for the
City, and a Table of Contents; the Financial Section, which begins with the
general purpose financial statements and provides an overview of the City's
financial position and operating results, followed by combining statements by
fund type and other schedules that provide additional detailed information
relative to the general purpose financial statements; and the Statistical
Section, which includes a number of statistical tables and charts that present
various financial, economic, social and demographic data for the City for the
last ten years.
the City includes all funds and accountForfinancialreportingpurposes,
groups. The City provides a full range of municipal services that include
police and fire, sanitation, health, culture and recreation, public improve-
ments, planning and general
administrative services. The general fund is
supported by property taxes and other general government revenues which are
not restricted to a particular use in the general fund. The City also
provides utility services, including electric, water, sewer, and refuse.
These services are enterprise funds, supported through user charges for
operating expenses. The City also maintains an enterprise fund to account for
the operations of all harbor and port related activities. Long -term borrow-
ings and earnings provide for capital outlay.
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All operating and management functions for the municipal health powers
have been delegated to Seward General Hospital which is operated by the
Community Hospital Board, whose members are appointed by The City Council.
The City performs accounting functions for the hospital under a contractual
fee arrangement. The City Council exercises budgetary oversight over hospital
operations. The financial statements of Seward General Hospital and the
auditor's report thereon are included in this report.
The Reporting Entity and Its Services
Seward is located on Resurrection Bay, a year - round, ice -free, deep water ,
area of Southcentral Alaska. On the eastern side of the Kenai Peninsula, 128
highway miles south of Anchorage, the City has year -round overland accessi-
bility. By air, Anchorage is 35 minutes, .Juneau three hours, and Seattle four
hours.
Situated on Resurrection Bay, Seward is strategically located for easy, '
economical access to Southcentral, Interior and Northern regions of Alaska.
Ideally located for maritime industrial development and the growing Pacific
Rim Trade, Seward is close to major shipping lanes, and is also the southern
tidewater terminus of the Alaska Railroad, which connects the port to
Anchorage and the interior of Alaska.
Against the background of declining State revenues and capital grants,
Seward continues to invest in the future. Completion of the State of Alaska's
first maximum security prison is expected on schedule in November, 1987. In
October, 1985, the City issued $45,440,000 in nonrecourse Certificates of
Lease Participation. The proceeds, along with $19,188,507 in State of Alaska
equity, is being used by Seward to finance construction of the Spring Creek
Correctional Center. The completed facility will be leased from Seward by the
State of Alaska under the terms of a long -term lease agreement signed in
October, 1985. The certificates will be repaid by the annual lease payments
appropriated by the Alaska legislature. The 320 bed facility will directly
add over one hundred fifty full -time jobs to the Seward economy. These jobs
will greatly enhance the local economy, providing much needed stability to the
primarily seasonal economy of the Seward area. The financing issue is insured
by United States Fidelity and Guarantee (USF&G) and was rated AAA by Moody's
Investor Service.
The City is continuing to develop and market a major Marine Industrial
Center designed to provide ship repairs and new vessel construction. The $40
million facility became operational in 1984. A three thousand dead weight ton
synchrolift, capable of lifting vessels up 300 feet in length, has provided
access to dry dock and repair facilities to over fifty vessels since it began
operation. The City began planning in 1986 for the addition of a vessel
transfer system which, when completed in 1986, will triple the capacity of the
facility. The transfer facility will be constructed with a combination of
federal, state, and local monies.
Planning continued in fiscal 1987 for 2 major capital improvements, a new
1,000 slip boat harbor and a new 26 bed hospital. Planning and construction
of additional infra - structure and support facilities combine to enhance the
ICity's location and natural resources.
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City Governmental Organization
The City was incorporated on June 1, 1412 and became a first class City
under the Alaska Statute's home rule provisions upon the adoption of the City
Charter by a referendum vote of the people on January 5, 1960. The form of
government established by the Charter is the Council- Manager plan. The
Council exercises the legislative power of the City and determines all matters
of policy. The Council is composed of a Mayor and six Councilmembers who are
elected at large. Councilmembers and the Mayor each serve a term of two
years. The City Manager is the head of the administrative branch of the City
Government and is responsible to the Council for the proper handling of all
affairs relating to the City.
The office of the City Clerk is subordinate to, and appointed by, the
Council. The City Clerk has duties in connection with the keeping of the
public records and City elections.
The City Attorney is appointed by the Council. All other officers and
employees of the City are appointed by the City Manager. Appointments to the
following positions are made by the City Manager with approval of the Council:
City Engineer
Chief of Police
Director of Finance and
Administrative Services
Fire Chief
The City's financial statements for governmental funds have been prepared
on the modified accrual basis of accounting in conformity with generally
accepted accounting principles. Revenues on this basis are recognized when
measurable and available to finance current expenditures; expenditures are
recognized when goods and services are received and liabilities are due and
payable at year end. The City's Enterprise Funds are accounted for on the
accrual basis. Revenues on the accrual basis are recognized when earned;
expenses are recognized when incurred. Inventories are stated at the lower of
cost or market. Cost is generally determined by the first -in, first -out
method.
In developing and evaluating the City's accounting system, consideration
is given to the adequacy of internal accounting controls. Internal accounting
controls are designed to provide reasonable, but not absolute, assurance
regarding: 1) the safeguarding of assets against loss from unauthorized use
or disposition; and 2) the reliability of financial records for preparing
financial statements and maintaining accountability for assets. The concept
of reasonable assurances recognizes that: 1) the cost of a control should not
exceed the benefits likely to be derived; and 2) the evaluation of costs and
benefits requires estimates and judgments by management.
All evaluations of the
framework. We believe that
safeguard assets and provide
financial transactions.
City's internal controls occur within the abode
the City's internal accounting controls adequately
reasonable assurance of proper recording of
The City adopts a fiscal year budget for the general fund. Budget amend-
ments require resolution of the Council. All budgets are controlled on a wine
item basis. Estimated purchase order amounts are encumbered prior to the
release of the order to the vendor. When an encumbrance exceeds available
appropriation authority, the order is delayed until the budget is amended.
open encumbrances lapse at year end and must be reappropriated in the follow-
ing year. Therefore, encumbrances are not reported as a reservation of fund
balance at June 30, 1987.
The Council adopts the budget for the general fund on an annual basis.
The Council may amend the budget by resolution during the year.
The City authorizes expenditure levels of appropriations by type of '
service. Ordinance requirements provide that budgetary guidelines are not
restrictive and may be reallocated by either the City Manager or the Council. ,
However, the total appropriation level may not be exceeded. During the yeas'
ended June 30, 1987, General Fund expenditures exceeded amounts appropriated
for some services, but did not exceed the total amount appropriated or actual
revenues.
General Governmental Functions
General governmental functions are accounted for in the General Fund.
Revenues for general governmental functions totaled 3,707,019 in the fiscal
year ended June 30, 1987, a decrease of 1,710,460 31.7 %) over 1986. The
amount of revenue from major sources and the increase or decrease over 1986 is
shown in the following summary:
Dollar
Increase
Percent
Increase
Percent Decrease) Decrease)
SgALM Amounts of Total v0er.1986 Qver 1986Rgvgnue
4.6 %
Taxes $ 842,119 22.6% 42,556
Licenses and permits 62,029 1.7 125,364) 66.9)
Intergovernmental revenue 755,182 20.4 43,324) 5.5)
Charges for services 1,758,086 47.5 1,664,095) 48.7)
Fines and forfeits 13,495 4 4,343 47.3
Miscellaneous revenue 226._10$ 7.4 75.424 37_.,5
53,707,019 100.% 1,710,460) 31.7 )$
The revenue decrease was due primarily to settlement of a 1,400,000
in 1987,
claim in 1986. In addition, building permits were down substantially
a result of the slow Alaska economy.
Property taxes attach as an enforceable lien on property as of January 1.
Taxes are levied on July 1, and are payable in two installments on August 15
and November 15. The Kenai Peninsula Borough bills and collects all property
taxes on behalf of the City. City property tax revenues are recognized when
levied to the extent that they result in current receivables. Assessed
valuations of $134,543,500 represented an increase of 65.4% from 1986.
A sales tax is levied at the rate of 3 %. Sales tax revenues are col-
lected by the Kenai Peninsula Borough on behalf of the City. Sales tax
revenues are recognized when received by the Borough. Sales tax receipts
totaled $448,304, an increase of $214,460 (91.7 %) from 1986. This increase
in sales tax revenue resulting from a rate increase of 1% to 3 %.
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Expenditures for general governmental purposes totaled $3,453,513 in
fiscal year 1987, a decrease of $452,807 (11.6 %) from 1986, Increases
Bonded Debt to
decreases) in levels of expenditures for major functions of the City from the
preceding year are shown in the following tabulations:
100% of Per
Amount Market Value)
Dollar
Increase
Percent
Increase
Net Direct Bonded Debt 8,072,000 5.39%
Percent Decrease) Decrease)
Amount of_12 tal Over 1986 Over I
General Government 1,414,497 41.08 60,818) 1.6)$
proceeds of the issue.
Public Safety 1,331,061 38,5 357,928) 9.2)
bond transactions of the City
Public Works 515,959 14.9 26,898) 7)
Parks and Recreation 191.996 5.6 7.163) 1)
3,453,513 100,08 4526807
Obligation Revenue
Bonds Bonds
The General Fund ear -end fund balance totaled 2 818 545yS , a decrease of
7,258,000 $137,000
850,896 over 1986.
Bonds issued 4,845,472 - 4,845,472
Debt Administration
Bonds retired 4.,031.472 70.000 4,101.472
Bonds payable at June 30, 1987 X12. 072,000 67,000 8,139,000
General Obligation Bonds of
The ratio of net bonded debt to assessed valuation and the amount of
bonded debt per capita are useful indicators of the City's debt position to
management, citizens, and investors.
Ratio of Net
Bonded Debt to
Assessed Value
100% of Per
Amount Market Value) CaRita
Net Direct Bonded Debt 8,072,000 5.39% 3,165
General Obligation bonds are carried in the General Long -Term Debt group
of accounts or in the respective Enterprise Funds which benefited from the
proceeds of the issue.
The following is a summary of bond transactions of the City for the year
ended June 30, 1987:
General
Obligation Revenue
Bonds Bonds Total
Bonds payable at July 1, 1986 7,258,000 $137,000 7,395,000
Bonds issued 4,845,472 - 4,845,472
Bonds retired 4.,031.472 70.000 4,101.472
Bonds payable at June 30, 1987 X12. 072,000 67,000 8,139,000
General Obligation Bonds of 8,072,000 have been recorded in the Enter-
prise Funds which benefited from proceeds of such bonds issued.
On August 1, 1986, the City refunded the 1984 Series A, General Obliga-
tion Bonds, which were issued to finance improvements in the City's electrical
The annual requirements to amortize all debt outstanding as of June 30,
Electric Fund in effect reduced its aggregated debt service payments by
1987, including interest payments of 6,110,525, are as follows:
between the present values of the old and new debt service payments) of
Fiscal General Special
CAsh Management
Years Obligation Revenue
Endine Bonds Bonds_ Total
1988 886,657 70,685 957,342
10 -21 of the Seward Code of Ordinances. The ordinance clearly identifies
1989 886,797 886,797
1990 889,537 889,537
1991 883,347 883,347
1992 881,892 881,892
1993 -1997
1998 -2002
4,272,710
3,654,700
4,272,710
3,654,700
2003 -2007 1,823.200 1.823.20
14,178,840 70,685 14,249,525
The City's various bonds agreements contain covenants requiring certain
earnings and sinking fund provisions. The City has either met or intends to
transfer amounts from other funds in order to meet these requirements.
On August 1, 1986, the City refunded the 1984 Series A, General Obliga-
tion Bonds, which were issued to finance improvements in the City's electrical
transmission system. Although the advance refunding resulted in the recogni-
tion of an accounting loss of $1,190,472 for the year ended June 30, 1987, the
Electric Fund in effect reduced its aggregated debt service payments by
191,781 over the next 18 years and obtained an economic gain (difference
between the present values of the old and new debt service payments) of
115,069.
CAsh Management
The City has combined all its funds into a "Central Treasury ".
The Central Treasury concept permits investment of combined funds, and
earnings thereon have been reported in the fund which supplied the resources
for investment.
The investment and collateralization of City funds is governed by Section
10 -21 of the Seward Code of Ordinances. The ordinance clearly identifies
safety as the primary concern in the selection and management of the City's
investments. Full collateralization of all uninsured investment balances is
required with the collateral held by a third party under the terms of separate
Security and Tri -party Escrow agreements. Collateral is "marked to market"
weekly.
Total City cash investments at June 30, 1987 were: '
Cash (overdraft) $ (281,674)
Certificates of Deposit 1,895,049
Repurchase agreements 183.869
1,797,244
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Cash temporarily idle during the year was invested in short -term time
deposits and repurchase agreements. The amount of interest earned in tho
fiscal year ended June 30, 1987, was $159,345. This amount was $226,569 less
than the interest earned in the fiscal year ended June 30, 1986.
Capital Prgiectj
In fiscal year 1987, the City completed a new 115 KV electric trans-
mission line, which will be used to supply virtually all of the municipal
utility's purchased power. The new transmission line replaces an existing 24
KV line, which was unable to efficiently meet the City's growing demands for
power. The $15,000,000 project was financed with $10,000,000 of State of
Alaska grant monies and $5,000,000 of City of Seward General Obligation Bonds.
The new line will supply power adequate to support all of the activities
within the utility's service area including the coal export facility, the
Marine Industrial Center, and the Spring Creek Correctional Center.
The City is involved in various construction projects related to the
development of the Seward Marine Industrial Center at the 4th of July Creek
area on the east shore of Resurrection Bay. Substantially all of the expendi-
tures are being reimbursed through various grants by the State of Alaska.
Amounts received or receivable from grantor agencies are subject to audit
and adjustment by the grantor agencies. Any disallowed claims, including
amounts already collected, would become a liability of the General or other
applicable funds.
The City is party to several civil actions at June 30, 1987. The amounts
of potential losses, if any, are not material in the judgment of the City
officials and it's legal counsel, and no loss provision has been made In the
accompanying financial statements.
General Fixed AAAgts
The general fixed assets of the City are those fixed assets used in the
performance of general governmental functions. Public domain (infrastructure)
general fixed assets consisting of certain improvements other than buildings,
including roads, bridges, curbs, etc. are not capitalized. Depreciation is
not taken on general fixed assets.
A summary of changes in general fixed assets follows;
Balance Balance
July j,, 1986 Addit Qnj Deletions June 30 987
Land $19,217,362 $ 35-010 $ _ $19,252,372
Buildings 6,529,112 6,529,112
Improvements other
than buildings 38,070,008 - - 38,070,008
Equipment 1.028.539 91.349 1,119,888
64,845,021 $126,359 $ 64,971,380
The City maintains detailed identifiable records of all general fixed
assets. Values of general fixed assets other than land are recorded at cost
or the value at time of receipt by the City from a donor. Land inventories
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were completed in 1983. Valuation was established, as near as could be
determined, to the value at the time of ownership transfer from the State or
cost where acquisition was by purchase.
Fixed asset acquisitions by the Enterprise Funds are capitalized at cast.
Depreciation is computed on the straight -line method over the estimated useful
lives of the assets ranging from five to thirty years.
A summary of proprietary fund type property, plant and equipment at June
30, 1987, follows:
Cost
Land $ 120,709
Buildings 4,215,138
Improvements other than
buildings 7,403,584
Equipment 26,378,122
38,117,560
Less accumulated depreciation 7,175,569
30,941,99,1
Enterprise funds are used to account for operations that are financed and
operated in a manner similar to private business enterprises - where the
intent of City Council is that the costs (including depreciation) of providing
services to the general public on a continuing basis be financed or recovered
primarily through user charges.
Enterprise Fund Plant in service, acquired by contributions in aid of
construction from grantor agencies, customers and others is depreciated. The
related depreciation expense is included in the determination of net income.
The annual depreciation on such contributed plant is transferred from retained
earnings to contributions in aid. Accumulated amortization of contributions
in aid represents the cumulative total of such depreciation transfers.
Utility revenues are based on cycle billings rendered to customers
monthly. As a result of this cycle billing method, the utilities do not
accrue revenue at the end of any fiscal period for services sold but not
billed at such date.
Interfund charges by the General Fund in lieu of the taxes and admin --
strative expenses are made in accordance with budget ordinance.
The City maintains four Enterprise Funds which provide electric,
water /sewer, hospital, and harbor services. Segment information for the year
ended June 30, 1987, was as follows:
Operating revenues
Depreciation
expense
Water/ Total
Electric Sewer Harbor Hospital Enterprise
Fund Fund Fund Fund Funds
3,818,793 $ 624,529 $ 834,284 $1,612,174 $ 6,888,780
851,870 358,614 86,389
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As of June 30, 1987, substantially all of the City's employees, excluding
the employees of the Electric Fund, were covered by the State of Alaska,
Public Employees Retirement system (PERS). The Public Employees' Retirement
System is a defined benefit pension plan to which policemen and firemen
contribute 7.58 and other employees are required to contribute 6.75% of their
compensation. Under the plan, the State of Alaska and all participating
political subdivisions are considered collectively to be a single employer Arid
contribute to the plan at a single composite rate to provide for normal coda
together with a past service rate determined separately for each employer.
The City's contribution rate for 1987 was 10.668 of employee compensation, for
a total contribution of $245,927. The excess of the actuarialy computed value
of vested benefits over the total pension fund assets applicable to the City
was as of June 30, 1986, the latest date for which an actuarial valuation is
presently available. The assumed rate of return used in determining the plan
benefits in 1986 was 88. The actuarial present value of accumulated non -
vested plan benefits is not available as PERS is not required to report such
information to certain governmental agencies pursuant to the Employee Retire-
ment Income Security Act of 1974. Unfunded accrued liabilities are being
amortized over a 25 year period.
Electric Fund employees are members
Electrical Workers, which maintains its
The City's contribution rate for 1987 wa
total contribution of $40,227.
Independent Audit
of the International Brotherhood of
own defined contribution pension plan.
s $3.00 per compensable hour for a
The City Charter and Section 29.35.120 of
require an annual audit of the books of accoun
transactions of all administrative departments
by a Certified Public Accountant selected by t
went has been complied with and the auditor's
report.
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the Alaska Statutes both
t, financial records, and
of "home rule" municipalities
he City Council. This require -
report has been included in this
Water/ Total
Electric Sewer Harbor Hospital Enterprise
Fund Fund Fund Funnel Funds
Operating
income (loss) 228,096 200,924) 212,082) 454,316) 639,226)
Net income (loss) 1,387,341) 328,834) 75,120) 64,049) 1,855,344)
Contributions to
funds 93,252 93,252
Property, plant
and equipment
additions 136,913 2,145 70,808 55,804 265,670
Working capital 668,660) 1,277,223) 444,669 433,879 1,067,335)
Total assets 20,111,314 10,347,783 1,420,728 1,242,304 33,122,129
Bonds and other
long term
liabilities 7,348,000 791,000 25,134 8,164,134
Total fund equity
Pension_Plans
11,625,780 8,189,301 1,328,929 941,672 22,085,68?
As of June 30, 1987, substantially all of the City's employees, excluding
the employees of the Electric Fund, were covered by the State of Alaska,
Public Employees Retirement system (PERS). The Public Employees' Retirement
System is a defined benefit pension plan to which policemen and firemen
contribute 7.58 and other employees are required to contribute 6.75% of their
compensation. Under the plan, the State of Alaska and all participating
political subdivisions are considered collectively to be a single employer Arid
contribute to the plan at a single composite rate to provide for normal coda
together with a past service rate determined separately for each employer.
The City's contribution rate for 1987 was 10.668 of employee compensation, for
a total contribution of $245,927. The excess of the actuarialy computed value
of vested benefits over the total pension fund assets applicable to the City
was as of June 30, 1986, the latest date for which an actuarial valuation is
presently available. The assumed rate of return used in determining the plan
benefits in 1986 was 88. The actuarial present value of accumulated non -
vested plan benefits is not available as PERS is not required to report such
information to certain governmental agencies pursuant to the Employee Retire-
ment Income Security Act of 1974. Unfunded accrued liabilities are being
amortized over a 25 year period.
Electric Fund employees are members
Electrical Workers, which maintains its
The City's contribution rate for 1987 wa
total contribution of $40,227.
Independent Audit
of the International Brotherhood of
own defined contribution pension plan.
s $3.00 per compensable hour for a
The City Charter and Section 29.35.120 of
require an annual audit of the books of accoun
transactions of all administrative departments
by a Certified Public Accountant selected by t
went has been complied with and the auditor's
report.
1 -13-
the Alaska Statutes both
t, financial records, and
of "home rule" municipalities
he City Council. This require -
report has been included in this
Certificate of Achievement '
In order to be awarded a Certificate of Achievement, a governmental unit
must publish an easily readable and efficiently Organized comprehensive annual
financial report, whose contents conform to program standards. Such reports
must satisfy both generally accepted accounting principles and applicable
legal requirements.
A Certificate of Achievement is valid for a period of one year only, We L
believe our current report continues to conform to Certificate of Achievement
Program require -ants, and we are submitting it to GFQA to determine its '
eligibility for the Certificate of Achievement.
Agknowledgemernts
The preparation of this report could not be accomplished without the
efficient and dedicated services of the entire staff of the Finance Depart-
ment. I should like to express my appreciation to all members of the '
department who assisted and contributed to its preparation.
I would also like to thank the members of the City Council for their
interest and support in planning and conducting the financial operations of
the City in a responsible and progressive manner.
Respectfully submitted, '
O
Ronald A. Garzini ,
City Manager
Robert D. Peirson '
Director of Finance and
Administrative Services
L'
Ll
14- 1
CITY MANAGER
CITY Ty- CLERK ]SECRETARY
DEPUTY
ITY CLERK
ARKS AM CITY
OLICE INANCE ktECREATION GINEER
atrol counting ecreation ublic
imal [ashier een Center Project
Control ta Engineer
ustodian rocessin uil.ding
orrections Inspection
MV tiiitq
Manager
1
1
15-
ASSISTANT
CITY MANAGER
TTORNEY
IRE PiARBoRmASTER
evard
Boat
Harbor
lectric
ublic Works
Supervisor
ater
ever
V.
ORGANIZATION CHART
i
MAYOR
OUNCIL
CITY MANAGER
CITYTy- CLERK ]SECRETARY
DEPUTY
ITY CLERK
ARKS AM CITY
OLICE INANCE ktECREATION GINEER
atrol counting ecreation ublic
imal [ashier een Center Project
Control ta Engineer
ustodian rocessin uil.ding
orrections Inspection
MV tiiitq
Manager
1
1
15-
ASSISTANT
CITY MANAGER
TTORNEY
IRE PiARBoRmASTER
evard
Boat
Harbor
lectric
ublic Works
Supervisor
ater
ever
V.
q
Harry E. Gieseler
David L. Hilton. Sr.
Michael J. Meehan
Leslie Simutis
Robert D. Booher
Beverly Dunham
William Noll
Ronald A. Garzini
Darryl Schaefermeyer
Linda Murphy
Robert Peirson
Everett P. Diener
16-
Mayor
Councilperson
Councilperson
Councilperson
Councilperson
Councilperson
Councilperson
City Manager
Deputy City Manager
City Clark
Director of Finance and
Administrative Services
City Engineer and
Utility Manager
I
1
PART II
FINANCIAL SECTION
1
1 -17-
I
HENDRIX & ESSLINGER
Certified Public Accountants
3510 Spenard Rd., Suite 102, Anchorage, Alaska 99503 (907) 258.0200
The Mayor and Members of the City Council
City of Seward, Alaska
We have examined the general purpose financial statements of the
City of Seward, Alaska, and the combining, individual fund, and account group
financial statements of the City as of and for the year ended June 30, 1987 as
listed in the table of contents. Our examination was made in accordance with
generally accepted auditing standards and, accordingly, included such tests of
the accounting records and such other auditing procedures as we considered
necessary in the circumstances. We did not examine the financial statements
of the Seward General Hospital, a component unit of the reporting entity,
which statements reflect total assets and revenues constituting 4 percent and
23 percent, respectively, in 1987 of the related memorandum totals. These
statements were examined by other auditors whose report thereon has been
furnished to us and our opinion expressed herein, insofar as it relates to the
amounts included for the Seward General Hospital, is based solely upon the
report of the other auditors.
We have reviewed the adjustments described in Note 14 that were
applied to restate 1986 financial statements to give retroactive effect to a
change in accounting principle. In our opinion, such adjustments are appro-
priate and have been properly applied to the 1986 financial statements.
In our opinion, based upon our examination and the report of other
auditors, the general purpose financial statements referred to above present
fairly the financial position of the City of Seward, Alaska, at June 30, 1987
and the results of its operations and the changes in financial position of its
proprietary type trust funds for the year then ended, in conformity with
generally accepted accounting principles applied on a basis consistent with
that of the preceding year. Also, in our opinion, the combining, individual
fund, and account group financial statements referred to above present fairly
the financial, position of the individual funds and account groups of the City
of Seward, Alaska, at June 30, 1987, and the results of operations of such
funds and the changes in financial position of individual proprietary funds
for the year then ended, in conformity with generally accepted accounting
principles which have been applied on a basis consistent with that of the
preceding year.
61[11
LI
September 25, 1987
J
19_ 1
Our examination was made for the purpose of forming an opinion on
the general purpose financial statements taken as a whole and on the combin-
ing, individual fund, and individual account group financial statements. The
accompanying financial information listed as supporting schedules in the table
of contents is presented for purposes of additional analysis and is not a
required part of the combined financial statements of the City of Seward,
Alaska. Such information has been subjected to the auditing procedures
applied in the examination of the general purpose, combining, individual fund,
and individual account group financial statements and, in our opinion, is
fairly stated in all material respects in relation to the combined financial
statements of each of the individual funds and account groups, taken as a
whole.
The other data included in this report, designated as the "statisti-
cal section" in the table of contents, has not been. audited by us and, accord-
ingly, we express no opinion on such data.
September 25, 1987
J
19_ 1
GENERAL PURPOSE FINANCIAL STATEMENTS
COMBINED STATEMENTS - OVERVIEW
These financial statements provide a summary overview of the fin-
ancial position of all fund and account groups and of the operating results of
all funds. The following statements are presented:
Combined Balance Sheet - all Fund
Types and Account Groups
1
Combined Statement of Revenues,
Expenditures, and Changes in
Fund Balance - All Governmental
Fund Types
1 Statement of Revenues, Expenditures
and Changes in Fund Balance -
Budget and Actual - General Fund
Combined Statement of Revenues,
Expenses, and Changes in Retained
Earnings - Proprietary Fund 'Types
Combined Statement of Changes in
Financial Position - Proprietary
Fund Types
1
1 20-
CITY OF SEWARD
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
June 30, 1987
ASSETS
Cash
Cash, restricted
Cash with fiscal agent
Equity in Central Treasury
Receivables (net of allowance for uncollectibles)
Taxes
Accounts
Grants
Accrued interest
Special assessments
Dotes, contracts, and other receivables
Due from other funds
Inventory
Prepaids
Fixed assets, net of accumulated depreciation
Capitalized leased assets, net of accumulated
amortization
Amount to be provided for retirement of general
long -term debt and accrued annual leave
Total assets
LIABILITIES AND EM EOUITY
LIABILITIES
Accounts and contracts payable
Due to other funds
Due to City employees
Accrued liabilities
Funds held in trust
Customer deposits
Deferred revenues
Notes payable
Revenue bonds, general obligation bonds,
bonds, and capitalized lease obligation
payable from enterprise fund revenues
Total liabilities
FUND EQUITY
Governmental
General
Capital
Projects
650
1,797,244
100,268
998,456 81,476
4,250 288,555
17,239
379,042
6,258
31,235 1,923,986
198,289
3,532,931, 2 294 017
156,274 $ 58,983
376,166
100,623 -
1,708 -
455,781 1,143,124
Propr- .etary
une. e
Enterp„I se
160,801
69,126
617,883
137,941
28,980
487,933
619,413
32,101
30,941,991
25,960
33,12.2 129
366,937
2,066,912
338.810
82,669
16,985
8 164,134 '
1,578,273 11.036.447
Investment in general fixed assets
Contributed capital, net of amortization
of contributions in aid of construction 20,720,813
Retained earnings 1,364,869
Fund balances (deficits)
Reserved for prepaids 198,289 -
Unreserved:
Undesignated 2,620,256 715.744
Total fund equity (deficit) 2.818.545 715.744 22.085,682
Total liabilities and fund equity 11.6532,931 $2,294017 33,122,129
See accompanying notes to financial statements.
21-
i
Fiduciary
Fund JyRe
Unc
815,171
815,171
Account Groups
Long -term General
Debt Fixed Assets
64,971,380
181.299
181,299 §4_, 97`,
815,171 _
133,141
48,158
815,171
181,299 -
64,971,380
64,971.380
L181,299 $64,971,380
22-
Totals
morandum 0
1987 1986
161,451 206,356
815,171
69,126 74,051
1,797,244 3,567,968
100,268 43,375
1,697,815 1,591,558
430,746 163,097
17,239
408,022 382,215
6,258 734,486
2,443,154 2,219,318
619,413 404,661
230,390 147,045
95,913,371 96,812,012
25,960 -
181,299 138,660
104,916,927 $106,484,802
582,194 1,929,774
2,443,078 2,219,318
815,171
572,574 542,388
1,708 1,527
82,669 116,465
1,615,890 2,014,701
48,158
8. 64.134 _ 7,395,000
14,325.576 14,219.1
64,971,380
20,720,813
1,364,869
198,289
3,336,000
90,591-351
104,916,`
64,845,021
21,458,522
2,420,219
124,215
3,417,652
92,265,629
106,484,802
CI'T'Y OF SEWARD CHANCES IN FUND BALANCESAND
COMBINED STATEMENT OF
GGOVERNMENTAL
FUNDS
TYPES
Year ended June 30, 1987
accompanying notes to financial statements.
23-
Capital
P a
REVENUES 842,119
Taxes
Licenses and permits
62,029
755,182 1,595,855
Intergovernmental revenues 1,758,086
Charges for services 13,495
Fines and forfeits
Miscellaneous revenues revenues
0 1.5g5.85
Total revenues
EXPENDITURES
Current 10414,497
General government 1,331,061
Public safety 515,959
Public works
Parks and recreation
191,996
1,894,259
Capital outlay
Debt service
Principal retirement
Interest and fiscal charges
8 Ag4
Total expenditures
253,506 298,404)
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES) r1 n9R_944) 0 75
Operating transfers in (out)
EXCESS OF REVENUES AND OTHER SOURCES OVEROTHERUSES
845,438) 812,351
UNDER) EXPENDITURES AND
669.44
FUND BALANCES (
DEFICITS), beginning of year
2,824,003 7 5.,7
FUND BALANCES (
DEFICITS), end of year
accompanying notes to financial statements.
23-
i
Totals
1987 1986
842,119 $ 799,563
62,029 187,393
2,351,037 1,648,769
1,758,086 3,422,181
13,495 9,152
276.108 200.684
5.302.874 6.267.742
1,414,497 1,475,315
1,331,061 1,688,989
515,959 542,857
191,996 199,159
1,894,259 1,903,068
10,000
5.347,_772 _5.819.576
44,898) 448,166
11.811 42.726
33,087) 490,892
3.572.834 -3-081.242
3,539,747 $3,572,834
24-
CITY OF SEWARD
STATEMENT OF REVENUES,
EXPENDITURES
ACTUAL
CHANGES IN FUND BALANCE
GENERAL FUND
Year ended .tune 30, 1987
EXPENDITURES 1,410,884 1,414,497 (3,613)
General government 1,367,740 1,331,061 36,679
Public safety 614,694 515,959 98,735
Public works
Parks and recreation 0
4
Total expenditures
EXCESS OF REVENUES OTHER (UNDER)
EXPENDITURES
50,360) 253,506
variance
OTHER FINANCING SOURCES
Operating transfers in (out)
18.300 Ogg_944)
Favorable
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER USES
Audw=t
Actual Un AkW
REVENUES 917,292 842,119
62,029
75,173)
37,921)
Taxes
licenses and permits
99,950
638,143 755,182 117,039
46,269intergovernmentalrevenues1,711,817 1,758,086
1,495Chargesforservices12,000 13,495
Fines and forfeits L4 276.1
Miscellaneous revenues
0 4
4-
Total revenues
EXPENDITURES 1,410,884 1,414,497 (3,613)
General government 1,367,740 1,331,061 36,679
Public safety 614,694 515,959 98,735
Public works
Parks and recreation 0
4
Total expenditures
EXCESS OF REVENUES OTHER (UNDER)
EXPENDITURES
50,360) 253,506 303,866
OTHER FINANCING SOURCES
Operating transfers in (out)
18.300 Ogg_944) 1 44)
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER USES
32,060) 845,438) 813,378)
FUND BALANCE, beginning of year 3 669;4 3b6944
FUND BALAI3CE, end of year
3,637,381 2,824,00 3 813 378)
See accompanying notes to financial statements.
25-
CITY OF SEWARD
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES - ENTERPRISE FUNDS
Year ended June 30, 1987
With comparative totals for year ended June 30, 1986
1987
OPERATING REVENUES
Residential sales 1,569,236 1,529,232
Commercial sales 1,229,928 1,194,697
Industrial 219,832 211,883
Governmental sales 770,354 870,029
City of Seward sales 275,261 326,354
Moorage 499,050 493,863
Patient service revenues, net 1,555,538 1,491,333
Marine industrial center 64,028
Miscellaneous 706,553 763.446
Total operating revenues 6,889,780 6,,8$0y$7
OPERATING EXPENSES
Power
Distribution
1,419,759
285,579
1,491,797
276,158
Pumping 80,843 102,256
Supplies and maintenance 208,093 231,145
Personnel services 323,130 296,375
Patient and general service 1,215,413 1,187,166
Administration and general 2,394,106 1,986,758
Marine industrial center
Depreciation
246,488
1.355.595 827,305
Total operating expenses 7,522,006 LIZL2.10
Operating income (loss) 639,226) SQ1.H77
NON - OPERATING REVENUES (EXPENSES)
Interest 74,701 219,347
Bond interest 472,740) 295,180)
Other 22,614 18,333
Fiscal agent fees 500) 500)
Contributions 362,089 471,712
Total non- operating revenues (expenses) 13.836) 413,772
Income (loss) before operating transfers
and extraordinary item 653,062) 915,649
OPERATING TRANSFERS IN (OUT) 11,811) 20.643
Net income (loss) before extraordinary item 664,873) 936,292
LOSS ON DEBT EXTINGUISHMENT 11.190,471)
Net income (loss) 1,855,344) 936,292
TRANSFERS OF CONTRIBUTED ASSETS 830,961 492.180
Increase (decrease) in retained earnings 1,024,383) 1,428,472
RETAINED EARNINGS, beginning of year, restated 2,389,252 135,469
Inclusion of Seward General Hospital retained
earnings, July 1, 1985 - 856.278
RETAINED EARNINGS, and of year $ 1,364,869 $2,420,219
WWII
See accompanying notes to financial statements,
26-
CITY OF SEWARD
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION
ALL PROPRIETARY FUND TYPES - ENTERPRISE FUNDS
Year ended June 30, 1987
With comparative totals for year ended June 30, 1986
SOURCES OF WORKING CAPITAL
Operations
Earnings (loss) before extraordinary item
Item not requiring working capital
Depreciation
Transfer of special assessment fund deficit
Loss on sale of equipment
Working capital
provided (used) by operations
before extraordinary item
Extraordinary
Wor
ingtcapitalsprovidedt(
used)
gbys
operations
Proceeds from long -term debt
USES OF WORKING CAPITAL
Acquisition of property, plant and equipment,
net of contribution -in -aid
Current bond maturities
Removal of Rose Memorial Fund
Increase (decrease) in working capital
ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL
Increase (decrease) in current assets
Cash
Cash with fiscal agent
Receivables
Accounts receivable, net
Special assessments
Accrued interest
Grants
Prepaids
Due from other funds
Inventory
Increase (decrease) in current liabilities
Accounts and contracts payable
Customer deposits
Deferred revenues
Due to other funds
Accrued liabilities
ableCurrentmaturitiesofbondspay
Decrease in working capital
198
664,873) $
1,357,963
30,967)
662,123
936,292 1
809,673
1
1,746,247
1.194 4 )
528,348) 1,746,247
216,471
688,123
265,670
450,693
716.36
08240)
1. !, 4
6,096,128
289,758
6 9 9 7
J 7r)
44,905) $(4,894,967)
4,925) 2,185
159,233 (85,461)
28,980
156,488)
1,753,225)
9,271 (4,853)
877,372) 954,533
214-752 7 4
514 966) 5 _.90-1-=)
1,340,559)
27,196)
15,009
793,493
25,994
46 533
48 7 6)
See accompanying notes to financial statements.
27-
634,647
53,530)
644,164)
1,175,671)
44,480)
23 796
11 2_ 59.402)
4,641,750)
CITY OF SEWARD
NOTES TO FINANCIAL, STATEMENTS
June 30, 1987
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying summary of the City of Seward's more significant account-
ing policies is presented to assist the reader in. interpreting the financial
statements and other data in this report. These policies, as presented, should
be viewed as an integral part of the accompanying financial statements.
a. Defining the reporting entity: The accompanying financial statements
include all activities and reporting entities over which the City of
Seward (City) exerc%ses oversight responsibility. Oversight responsi-
bility is derived fcom the City of Seward's power and includes, but
is not limited to, financial interdependency, selection of governing
authority, designation of management, ability to significantly
influence operations and accountability for fiscal matters. The City
owns the building and land upon which the Seward General Hospital
Hospital) is located, and accounts for them in the General Fixed
Assets Account Group. As of January 1, 1987, Hospital employees
became City employees. operating responsibilities have been dele-
gated to the Seward General Hospital, Inc. nonprofit advisory board.
The Hospital's accounting records of financial activity are main-
tained separately from the City's. The financial position and
operating results of the Hospital are included in these financial
statements.
Responsibility and accountability for the educational function is
vested with the Kenai Peninsula Borough. Accordingly, financial data
of the schools is not included in the accompanying financial state-
menns of the City.
b. Basis of presentation - fund accounting: The accounts of the City
are organized on the basis of funds and account groups, each of which
is considered a separate accounting entity. The operations of each
fund are accounted for with a separate set of self - balancing accounts
that comprise its assets, liabilities, fund equity, revenues, and
expenditures or expenses, as appropriate. Government resources are
allocated to and accounted for in individual funds based upon the
purposes for which they are to be spent and the means by which
spending activities are controlled. The various funds are grouped,
in the financial statements in this report, into seven generic fund
types and three broad fund categories as follows:
1.) Fund Categories
Governmental Fund Types - Governmental funds are those
through which most governmental functions of the City are
financed. The acquisition, use and balances of the City's
expendable financial resources and the related liabilities
except those accounted for in proprietary funds) are
accounted for through governmental funds. The measurement
focus is upon determination of changes in financial posi-
tion, rather than upon net income determination. The
following are the City's Governmental Fund Types:
The General Fund is the general operating fund of the City.
It is used to account for all financial resources except
those required to be accounted for in another fund.
28-
CITY OF SEWARD '
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1987 '
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Con't.) '
b. Basis of presentation - fund accounting (Con't.)
1.) Fund Categories (Con't.) '
v -
The Capital Projects Funds are used to account for finan-
cial resources to be used for the acquisition or construc-
tion of major capital facilities.
Provrietary Fund Ines - Proprietary Funds are used to
account for the City's ongoing activities which are similar
to those often found in the private sector. The measure-
ment focus is upon determination of net income. The
following are the City's Proprietary Fund Types:
The Electric Fund is used to account for the provision of
electricity to the residents of the City and certain
residents of the Kenai Peninsula Borough.
The Water and Sewer Fund is used to account for the
provision of water and sewer services to the residents of
the City and certain residents of the Kenai Peninsula
Borough.
The Harbor Fund is used to account for the provision of
harbor services to the public on Resurrection Bay. ,
The Hospital Fund is used to account for the provision of
hospital services to the public. '
Fiduciary Funds - Fiduciary Funds account for assets held
by the City in a trustee capacity or as an agent for
individuals, private organizations, other governments, and '
other funds. These include Agency Funds. Agency Funds are
custodial in nature (assets equal liabilities) and do not
involve measurement of results of operations.
12.) Account Groups
Account groups are used to establish accounting control and
accountability for the City's general fixed assets and
general long -term debt. The following are the City's
account groups: '
General fixed Assets Account GrouR - This group of accounts
is established to account for all fixed assets of the City,
other than those accounted for in the proprietary funds.
General Lone -Term Debt account Group - This group of
accounts is established to account for all long -term debt
of the City except that accounted for in the proprietary
funds and special assessment funds.
29- '
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1987
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Con't.)
b. Basis of presentation - fund accounting (Con't.)
3.) Comparative Data
Comparative data for the General Fund Balance Sheet,
General Fixed Assets Group of Accounts, General Long -Term
Debt Group of Accounts and for the Enterprise Fund Balance
Sheet, Statement of Revenues, Expenses and Changes in
Retained Earnings and Statement of Changes in Financial
Position are presented in order to provide an understanding
of the change in financial position for the General Fund,
General Fixed Assets Group of Accounts and General Long-
Term Debt Group of Accounts and changes in financial
position and operations for the Enterprise Fund. Compara-
tive data are not included for the other funds.
4.) Memorandum Only Totals - Combined Statements
Total columns are presented for the Combined Balance Sheet
All Fund Types and Account Groups and the Combined
Statement of Revenues, Expenditures, and Changes in Fund
Balance - All Governmental Types in the General Purpose
Financial Statements. Those total columns are captioned as
memorandum only and are presented for overview informa-
tional purposes only. They do not fairly present financial
position or results of operations for the governmental unit
as a whole in conformity with generally accepted accounting
principles.
c. Basis of accounting: Basis of accounting refers to when revenues and
1 -30-
expenditures or expenses are recognized in the accounts and reported
in the financial statements, regardless of the measurement focus
applied.
All governmental funds and agency funds are accounted for using the
modified accrual basis of accounting. Their revenues are recognized
when they become measurable and available as net current assets.
Expenditures are generally recognized under the modified accrual
basis of accounting when the related fund liability is incurred,
except for principal and interest on general long -term debt which is
recognized when due.
All proprietary funds are accounted for using the accrual basis of
accounting. Their revenues are recognized when they are earned and
their expenses are recognized when they are incurred. utility
revenues are based on cycle billings rendered to customers monthly.
As a result of this cycle billing method, the utilities do not accrue
revenue at the end of any fiscal period for services sold but not
billed at such date.
1 -30-
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1987
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Con't.)
d. Budgetary data: Annual budgets are legally adopted by the City
Council for the General Fund. Budgets are prepared and presented on
the modified accrual basis of accounting.
Budgetary control (the level at which expenditures may not exceed
budget) is maintained at the fund level by the encumbrance of estima-
ted purchase amounts prior to the release of purchase orders to
vendors.
Amendments to appropriations may be made by the City administration
or the Council by transfers within a department. Supplemental
appropriations are made by the City Council.
A comparison of original annual appropriations with the final amended
expenditure budget as presented in the financial statements is as
follows:
Fund
General Fund
Original Final
Anvro-priatio 1 Pet
3,542,215 3,592,036
Unencumbered, unexpended appropriations lapse at year end.
During the year, encumbrances are recorded as expenditures and a
reserve of fund balance. In order to comply with generally accepted
accounting principles, at year end the encumbrances are reversed from
expenditures and fund balance reserves.
e. Assets, liabilities and fund equity:
Central - The City has combined all of its funds into a
Central Treasury ". Cash restrictions imposed by ordinance, resolu-
tion, or otherwise have been segregated in the accompanying state-
ments from funds unrestricted as to use.
The Central Treasury concept permits investments of combined funds
and earnings thereon have been reported in the fund which supplied
the resources for investment.
At ,tune 30, 1987, the Central Treasury was composed of the following:
Cash (overdraft) $ (
281,674)
Certificates of deposit 1,895,049
Repurchase agreements ---- 183,869
1,797244
Investment§ - Investments of the City consist of time certificates of
deposit or repurchase agreements which are valued at the lower of
cost or market.
Inventory - Inventories are carried at the lower of cost or market,
determined by the first -in, first -out method.
31-
I
w
1
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1987
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Con' t.)
e. Assets, liabilities and fund equity (Can't.)
Fixed assets and - - The accounting and reporting
treatment applied to the fixed assets and long -term liabilities
associated with a fund are determined by its measurement focus. All
governmental funds are accounted for on a spending or "financial
flow" measurement focus. This means that only current assets and
current liabilities are generally included in their balance sheets.
Their reported fund balance (net current assets) is considered a
measure of "available spendable resources ". Governmental fund
operating statements present increases (revenue and other financing
sources) and decreases (expenditures and other financing uses) in net
current assets. Accordingly, they are said to present a summary of
sources and uses of "available spendable resources" during a period.
Fixed assets which are used in governmental fund type operations
general fixed assets) are accounted for in the General Fixed Assets
Account Group, rather than in governmental funds. Public domain
infrastructure ") general fixed assets consisting of certain
improvements other than buildings including roads, bridges, curbs and
gutters, streets and sidewalks, drainage systems, and lighting
systems are not capitalized along with other general fixed assets.
No depreciation has been provided on general fixed assets.
All fixed assets are valued at historical cost or estimated histor-
ical cost if actual historical cost is not available. Donated fixed
assets are valued at their estimated fair value on the date donated.
Long -term liabilities expected to be financed from the General Fund
are accounted for in the General Long -term Debt Account Group, not in
the governmental funds.
The two account groups are not "funds ". They are concerned only with
the measurement of financial positions. They are not involved with
measurement of results of operations.
Noncurrent portions of long -term receivables due to governmental
funds are reported on their balance sheets, in spite of their
spending measurement focus. Special reporting treatments are used to
indicate, however, that they should not be considered "available
spendable resources ", since they do not represent net current assets.
Recognition of governmental fund type revenues represented by
noncurrent receivables is deferred until they become current receiv-
ables.
Because of their spending measurement focus, expenditure recognition
for governmental fund types is limited to exclude amounts represented
by noncurrent liabilities. Since they do not affect current assets,
such long -term amounts are not recognized as governmental fund type
expenditures or fund liabilities. They are instead reported as
liabilities in the General Long -Term Debt Account Group.
1 -32-
CITY OF SEWARD '
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1987
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Con't.) '
e. Assets, liabilities and fund equity (Con't.)
G - Fixed assets required by other than the
Enterprise Funds for governmental purposes are recorded as expendi-
tures in each fund and are capitalized at historical cost or estima-
ted historical cost in the General Fixed Assets Group of Accounts.
Upon disposal of significant property items, the General Fixed Assets
Group of Accounts is relieved of the related cost, or estimated cost,
and any receipt is normally accounted for as revenue in the General
Fund.
Mee., assets (Enterprise Funds) - Assets comprising property, plant
and equipment in the Enterprise Funds are stated at cost. Deprecia-
tion has been provided by the use of the straight -line method over
the estimated lives of the assets.
Estimated lives of major asset categories are as follows:
Buildings 10 -30 years
Improvements other than buildings 15 years
Equipment 5 -20 years
Enterprise Fund property, plant and equipment acquired by contribu-
tions in aid of construction from grants, entitlements or shared
revenues externally restricted is depreciated. The related deprecia-
tion expense is included in the determination of net income. The
annual depreciation on such contributed plant is transferred from
retained earnings to contributions in aid. Accumulated amortization
of contributions in aid represents the cumulative totals of such
depreciation transfers.
Accrued leave - Annual leave (vacation) is recorded as an expense in 1
the proprietary funds in the period it is earned by the employees
with the total liability for accrued leave presented in the related
fund balance sheet. The amount of compensated absences recorded as
expenditures in governmental funds is the amount accrued during the
year that would normally be liquidated with expendable available
resources. Only the current portion of the liability is recorded in
the governmental fund balance sheet, with the remainder reported in
the general long -term debt account group. Accumulated unpaid
vacation at June 30, 1987 consisted of the following:
General Fund 54,613
General Long -term Debt Group of Accounts 2133,141
Enterprise Funds
Harbor $ 39,992
Electric 30,486
Water /Sewer 11.847
82,325
33- 1
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
Tune 30, 1987
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Con't.)
e. Assets, liabilities and fund. equity (Con't.)
Re,gr,r e - The following reserve has been established in the govern-
mental fund types:
ggneral fund - Reserve for prepaid expenditures; A portion of fund
balance representing prepaid insurance at year end. The segregation
has been made for expenditure upon use of the insurance policy.
f. Revenues, expenditures and expenses:
Revenue Recognition - Sales tax are considered "measurable" when in
the hands of the Kenai Peninsula Borough and are recognized as
revenue at that time. Other major revenues that are determined to be
susceptible of accrual include Revenue Sharing, grants -in -aid earned
and other intergovernmental revenues, interest, rentals and intra-
city charges. Major revenues that are determined to not be suscepti-
ble of accrual because they are either not available soon enough to
pay liabilities of the current period or are not objectively measur-
able include delinquent property taxes, licenses, permits, fines and
forfeitures.
Real and personal property taxes receivable are accrued, but uncol-
lected amounts in excess of the estimated uncollectible portion are
deferred and reflected as such in the balance sheet.
Special assessments are recognized as revenue only when they become
measurable and available as net current assets. Annual installments
not yet due are reflected as special assessments receivables.
2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
a. Appropriations: The City authorizes expenditure levels of appropria-
tion by type of service. Ordinance requirements provide that
budgetary guidelines are not restrictive and may be reallocated by
either the City Manager or the Council. However, the total appropri-
ation level may not be exceeded. During the year ended June 30,
1987, General Fund expenditures exceeded amounts appropriated for
some services but did not exceed the total amount appropriated or
actual revenues.
b. Deficit funds: Enterprise - The Water /Sewer Fund had deficit
retained earnings of $733,709 at June 30, 1987.
Capital projects - The Flood Disaster Fund had a fund deficit of
55,779 at June 30, 1987.
3. CASH AND INVESTMENTS
The City's certificates of deposit during the year and at year end were
entirely covered by federal depository insurance or by collateral held by an
escrow bank in the City's name. Collateral for deposits and the repurchase
agreement is held by the bank, but not in the City's name.
Statutes authorize the City to invest in obligations of the U. S. Treasury
and U. S. agencies, bankers' acceptances, repurchase agreements, commercial
34-
4.
5.
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1987
CASH AND INVESTMENTS (Con't.)
paper rated A -1 by Standard & Poor's Corporation or P -1 by Moody's Commercial
Paper Record and maturing within nine months, and certificates of deposit
issued by rated banks or secured by eligible collateral.
The City's investments at year -end are categorized below to give an
indication of the level of risk assumed by the City at year end. Category 1
includes investments that are insured or registered or for which the securities
are held by the City or its agent in the City's name. Category 2 includes
uninsured and unregistered investments for which the securities are held by the
broker's or dealer's trust department or agent in the City's name. Category 3
includes uninsured and unregistered investments for which the securities are
held by the broker or dealer, or by its trust department or agent but not in
the City's name. All certificates of deposit invested in institutions outside
of the City totaling $856,000, are covered by federal depository insurance.
Certificates of deposit invested in two local banks totaling $1,039,049, are
covered by federal depository insurance and /or collateralized by government
securities which are held by an escrow bank in the City's name. Collateral for
the repurchase agreement is held by the local bank, but not in the City's name.
MarketCateg-o= Carrying
1 2 2 Amount- VILue
Certificates of deposit $1,895,049 $ - $ - $1,895,049 $1,895,049
Repurchase agreement 183.869 182, 183.869
Total investments $1,895,049 L_ -` $183,869 $2,078,918 $2,078,918 t
PROPERTY TAXES '
Property taxes attach as an enforceable lien on property as of January 1.
Taxes are levied on July 1, and are payable in two installments on August 15
and November 15. The Kenai Peninsula Borough bills and collects all property ItaxesonbehalfoftheCity.
LONG -TERM RECEIVABLE
On August 24, 1984, the City Council authorized the closing of the sale of
the Gateway Subdivision lots. The purchaser executed a promissory note for the
sales price of $742,500, which was originally in long -term notes receivable and '
deferred revenue in the financial statements. Under the terms of the note,
2,000 per lot is payable to the City upon the closing of the first one hundred
lots sold; $3,500 per lot upon the closing of the remaining lots, until the
entire principal is paid in full. The principal amount bears no interest,
unless in the case of default when interest shall accrue at 12% per annum. Any
remaining indebtedness shall be due and payable in full on January 1, 1990. As
of June 30, 1987, $20,000 had been paid against the principal, resulting in a '
principal balance of $722,500 at June 30, 1987.
The City is currently negotiating with the lending institution of the '
purchaser, proposing the bank take a deed in lieu of foreclosure from the
purchaser, since the purchaser is in default to the bank. The City would then
pay monthly interest payments to the bank, while holding open their option to
pay off the bank loan at a discounted rate. The amount required by the City to '
pay off the bank loan varies from $1,400,000 to $1,775,000, depending upon what
date the pay -off is made. As of June 30,1987, the City does not anticipate
35- '
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1987
5. LONG-TERM RECEIVABLE (Con't.)
receiving anymore principal payments on the promissory note; therefore, an
allowance for uncollectible amounts has been recorded for the entire long -term
receivable balance of $722,500.
6. CHANGES IN GENERAL FIXED ASSETS
A summary of changes in general fixed assets follows;
Balance Balance
1311v 1. 1986 Additions Deletions June 30. 1987
Land $19,217,362 $ 35,010 $ $19,252,372
Buildings 6,529,112 6,529,112
Improvements other
than buildings - 38,070,008 - - 38,070,008
Equipment 1.028.539 91.349 1.119.888
64,845,021 $126,359 $ $6644
X971 ;
380
A summary of proprietary fund type property, plant and equipment at
June 30, 1987 follows:
Cost
Land $ 120,709
Buildings 4,215,138
Improvements other than buildings 7,403,584
Equipment _26.378.129
38,117,560
Less accumulated depreciation 7.175.569
30,941,991
7. PENSION PLANS
As of June 30, 1987, substantially all of the City employees, excluding
the employees of the Electric Fund, were covered by the State of Alaska Public
Employees Retirement System (PERS). The Public Employee Retirement System is a
defined benefit pension plan to which policemen and firemen contribute 7.58 and
other employees are required to contribute 6.75% of their compensation. Under
the plan, the State of Alaska and all participating political subdivisions are
considered collectively to be a single employer and contribute to the plan at a
single composite rate to provide for normal costs together with a past service
rate determined separately for each employer. The City's contribution rate for
the year ended 1987 was 10.668 of employee compensation for a total contribu-
tion of $245,927. The contribution rate for hospital employees for 1987 was
16.58 for a total contribution of $157,016.
At June 30, 1986, the Plan had net assets in excess of accumulated
benefits of $40,515. The assumed rate of return used in determining the plan
benefits in 1986 was 88. The actuarial present value of accumulated nonvested
plan benefits is not available as PERS is not required to report such informa-
tion to certain governmental agencies pursuant to the Employee Retirement
Income Security Act of 1974. Unfunded accrued liabilities are being amortized
over a 25 year period.
1 -36-
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1987
7. PENSION PLANS (Con't.)
Electric Fund employees are members of the International Brotherhood of
Electrical Workers, which maintains its own definod contribution pension plan.
The City's contribution rate for 1987 was $3.00 per compensable hour, for a
total contribution of $40,227.
8. DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in
accordance with Internal Revenue Code Section 457. The plan, available to all
City employees, permits them to defer a portion of their salary until future
years. The deferred compensation is not available to employees until termina-
tion, retirement, death, or unforeseeable emergency.
All amounts of compensation deferred under the plan, all property and
rights purchased with those amounts, and all income attributable to those
amounts, property, or rights are (until paid or made available to the employee
or other beneficiary) solely the property and rights of the City (without being
restricted to the provisions of benefits under the plan), subject only to the
claims of the City's general creditors. Participants' rights under the plan
are equal to the fair market value of the deferred account for each partici-
pant.
It is the opinion of the City's legal counsel that the City has no
liability for losses under the plan but does have the duty of due care that
would be required of an ordinary prudent investor. The City believes that it
is unlikely that it will use the assets to satisfy the claims of general
creditors in the future.
9. CAPITALIZED LEASE
The Hospital leases equipment under long -term lease agreements. Capital-
ized leased assets at June 30, 1987 consists of the following:
Equipment $26,400
Less accumulated amortization 44Q
25,960
Minimum lease payments for capital leases as of June 30, 1987 are as
follows:
1988
1989
1990
1991
1992
Total minimum lease payments
Less interest
Present value of minimum lease payments
Less current portion
Capitalized lease obligation
37-
7,394
7,394
7,394
7,394
6.160
35,736
25,134
5,2QO
C
t
r
19,934 t
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON`T.)
June 30, 1987
0. LANG -TERM DEBT
The following is a summary of long -term debt transactions of the City for the
year ended June 30, 1987:
General Accrued
Obligation Annual Revenue Note
Bonds Leave Bonds rayable 12tal
Outstanding at July 1, 1986 $7,258,000 $138,660 $137,000 $ - 7,533,660
Debt retired 4,031,472 - 70,000 1,426 4,102,898
Debt issued 4,845,472 49,584 4,895,056
Deletions to accrued leave _ 5.519 5.519
Outstanding at June 30, 1987 $8.072.0000 $133,141 67,000 $48,158 8,320,299
General obligation bonds of $8,072,000 have been recorded in the Enterprise
Funds which benefited from proceeds of such bond issues. Principal and interest
expenditures related to the note payable are paid with General Fund monies.
Bonds payable at June 30, 1987 are comprised of the following individual issues:
General Obligation Bonds:
226,000 1962 Water Serial Bonds due in annual installments of
10,000 to $12,000 through September 1, 1991; interest at 3.375 %. 56,000
1,200,000 1976 Water /Sewer Serial Bonds due in annual installments
of $50,000 to $110,000 through June 1, 1996; interest at 88 to 7.258. 735,000
1,700,000 1980 Electric Serial Bonds due in annual installments of
50,000 to $155,000 through January 1, 2001; interest at 7 %. 1,405,000
5,000,000 1984 Electric Serial Bonds due in annual installments
of $100,000 to $205,000 through October 1, 1994; interest at 12.5%
to 9.58. 1,175,000
4,845,472 1986 Electric Serial Bonds due in annual installments of
46,000 to $565,000 through October 1, 2004; interest at 5% to 7.58. 4.701.000
8 0 772 , 000
Revenue Bonds:
400,000 of 1957 Electric Utility Serial Bonds due in annual in-
stallments of $63,000 to $70,000 through July 1, 1987; interest
at 5.58. 67000
Note Payable:
49,584 1987 note payable due in monthly installments of $1,456
through April, 1990, including interest at 9.58. 4.8,158
The annual requirements to amortize all debt outstanding as of June 30, 1987,
including interest payment of $6,119,441 are as follows:
General Special
Fiscal Obligation Revenue Note
Years Ending Bonds Bonds Payable Total
1988 $ 886,657 $70,685 $21,411 978,753
1989 886,797 20,066 906,863
1990 889,537 15,597 905,134
1 -38-
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1987
10. LANG -TERM DEBT (Con't.)
The City's various bond agreements contain covenants requiring certain
earnings and sinking fund provisions. The City has either suet or intends to
transfer amounts from other funds in order to meet these requirements.
General Obligation Bonds in the amount of $2,550,000 to finance the Senior
Center and a dock at the Seward Marine Industrial Center were authorized at the
October 1987 City election.
11. DEBT EXTINGUISHMENT
On August 1, 1986, the City issued $4,845,472 in General Obligation Bonds
with an average interest rate of 7.6% to advance refund $3,655,000 of the
4,920,000 remaining outstanding 1984 General Obligation bonds with an average
interest rate of 11.5 %. The net proceeds were used to purchase U. S. govern-
ment securities. Those securities were deposited in an irrevocable trust with
an escrow agent to provide for debt service due in 1995 and beyond on the 1984
General Obligation bonds. As a result, the 1984 General Obligation bonds are
considered to be partially defeased and $3,655,000 of the liability for those
bonds has been removed from the Electric Fund. The $6,110,472 total
outstanding principal after the redemption is comprised of the $4,845,472 1986
issue plus the $1,265,000 remaining from the 1984 issue.
Although the advance refunding resulted in the recognition of an account-
ing loss of $1,190,472 for the year ended June 30, 1987, the Electric Fund in
effect reduced its aggregated debt service payments by $191,781 over the next
18 years and obtained an economic gain (difference between the present values
of the old and new debt service payments) of $115,069.
12. INTERFUND RECEIVABLES AND PAYABLES
At June 30, 1987, interfund receivables and payables consisted of the
following:
General Fund
Capital Projects Funds
Community Center
Library renovation
Flood disaster
Boat Harbor Expansion
Interfund
Receivable
31,235 $
38,355
756,545
Interfund
Payable
22,751
286,681
1
1
1
r
1
39- 1
General Special
Fiscal
Years Ending
Obligation Revenue
Bon Bonds --
Note
Payable ToCal
1991 883,347 - 883,347
1992 881,892 - 881,892
1993 -1997 4,272,710 - 4,272,710
1998 -2002 3,654,700 - 3,654,700
2003 -2007 1.823.200 1,821,200
14,178,840 $70,685 57 074 $14,306,599
The City's various bond agreements contain covenants requiring certain
earnings and sinking fund provisions. The City has either suet or intends to
transfer amounts from other funds in order to meet these requirements.
General Obligation Bonds in the amount of $2,550,000 to finance the Senior
Center and a dock at the Seward Marine Industrial Center were authorized at the
October 1987 City election.
11. DEBT EXTINGUISHMENT
On August 1, 1986, the City issued $4,845,472 in General Obligation Bonds
with an average interest rate of 7.6% to advance refund $3,655,000 of the
4,920,000 remaining outstanding 1984 General Obligation bonds with an average
interest rate of 11.5 %. The net proceeds were used to purchase U. S. govern-
ment securities. Those securities were deposited in an irrevocable trust with
an escrow agent to provide for debt service due in 1995 and beyond on the 1984
General Obligation bonds. As a result, the 1984 General Obligation bonds are
considered to be partially defeased and $3,655,000 of the liability for those
bonds has been removed from the Electric Fund. The $6,110,472 total
outstanding principal after the redemption is comprised of the $4,845,472 1986
issue plus the $1,265,000 remaining from the 1984 issue.
Although the advance refunding resulted in the recognition of an account-
ing loss of $1,190,472 for the year ended June 30, 1987, the Electric Fund in
effect reduced its aggregated debt service payments by $191,781 over the next
18 years and obtained an economic gain (difference between the present values
of the old and new debt service payments) of $115,069.
12. INTERFUND RECEIVABLES AND PAYABLES
At June 30, 1987, interfund receivables and payables consisted of the
following:
General Fund
Capital Projects Funds
Community Center
Library renovation
Flood disaster
Boat Harbor Expansion
Interfund
Receivable
31,235 $
38,355
756,545
Interfund
Payable
22,751
286,681
1
1
1
r
1
39- 1
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1987
S12. INTERFUND RECEIVABLES AND PAYABLES (Con't.)
e
Interfund
Receivable
Interfund
Payable
Boat Harbor Improvements 77,494
Radio Translator 3,800
Marine Industrial Center 1,047,792 y
Other 66,734
Enterprise Funds
Electric 736,332
Water /Sewer 1,330,580
Harbor 487.933
2,443,154 2,443,078
The interfund
1987.
receivables and payables were out of balance 76 at June 30,
13. SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City maintains four Enterprise Funds which provide electric,
water /sewer, harbor and hospital services. Segment information for the year
ended June 30, 1987 is as follows:
Water/ Total
Electric Sewer Harbor Hospital Enterprise
Fund Fund Fund Fund __ Fund . _
Operating revenues 3,818,793 624,529 $ 834,284 1,612,174 $ 6,889,780
Depreciation
expense 851,870 358,614 86,389 58,722 1,355,595
Operating
income (loss) 228,096 200,924) (212,082) 454,316) (639,226)
Net income (loss) 1,387,341) 328,834) (75,120) 64,049) (1,855,1044)
Contributions to
funds 93,252 93,252
Property, plant
M and equipment
additions 136,913 2,145 70,808 55,804 265,670
Working capital 668,660) 1,277,223) 444,669 433,879 (1,067,335)
Total assets 20,111,314 10,347,783 1,420,728 1,242,304 33,122,129
Bonds and other
long term
liabilities 7,348,000 791,000 - 25,134 8,164,134
Total fund equity 11,625,780 8,189,301 1,328,929 941,672 22,085,682
14. ACCOUNTING CHANGE
The water /sewer beginning retained earnings has been restated to include
the fund deficit previously reported as Special Assessment Fund. This change
was made to conform with the principles recommended by the Governmental
Accounting Standards Board (GASB) Statement 6. The cumulative effect of the
change was to close the Special Assessment Fund to the Water /Sewer Fund,
decreasing retained earnings $30,607, increasing special assessments receivable
and bonds payable $43,844, and increasing deferred revenue of $30,607.
1 -40-
CITY OF SEWARD '
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1987
15. COMMITMENTS AND CONTINGENCIES
Litigation has been initiated against the City seeking punitive damages ,
for a suicide that occurred in the Seward City Jail on or about November 20,
1984. The case remains in the discovery phase of proceedings at June 30, '
1987. The tenders of defense of this action has been accepted by the
Council's insurance carrier, who at this stage cannot offer an opinion as to
the probable outcome.
Significant financial assistance has been received by the City from I
numerous federal and state agencies in the form of grants. The disbursement
of funds received under these grants generally requires compliance with terms
and conditions specified in the grant agreements, and is subject to audit by
the grantor agencies. Any disallowed claims resulting from such audits could
become a liability of the General Fund or other applicable funds. However,
in the opinion of management, liabilities resulting from disallowed claims,
if any, will not have a material effect on the City's financial position at
June 30, 1987.
The electrical subcontractor on Phase IV of the Seward Marine Industrial
Center Shiplift Construction and Installation Project has filed a claim for
costs and damages against the City as owner, the general contractor, and the
general contractor's payment bond. The subcontractor seeks damages in excess
of $380,000 against defendants, jointly and punitive damages in excess of
500,000. This litigation remains in the early discovery stages. In
counsel's opinion, the major item in the claim is without merit.
The City commenced an action on July 31, 1985 against an engineering
firm for alleged engineering defects in the design of Phase IV of the Seward
Marine Industrial Center. Damages in an amount in excess of $1,450,000 have
been alleged. The engineering firm filed a counterclaim for alleged unpaid
fees in an amount in excess of $111,676 plus costs, interest and attorney's
fees. The City has denied responsibility for those claimed engineering fees.
There has been very little activity in this litigation.
The City has authorized settlement of this claim on the dismissal of all
claims and counterclaims with each party to bear its own costs and attorney's
fees. In counsel's opinion, this matter will be resolved without any
liability on the part of the City.
A wrongful discharge claim has been filed by an employee of the City.
The employee seeks reinstatement and back -pay. The maximum exposure to the
City at June 30, 1987 is approximately $60,000. In counsel's opinion, the
chances of the City prevailing on the merits are good. I
n
41- 1
FINANCIAL STATEMENTS OF INDIVIDUAL FUNDS
Statements and Schedules
t
1 -42-
GENERAL FUND
The General Fund is established to account for the revenues and
expenditures necessary to carry out basic governmental activities of the City
such as police protection, fire protection, recreation, planning, legal
services, administrative services, etc. Appropriations are made from the fund
annually. The fund will continue to exist indefinitely.
Revenues, for this and other funds, are recorded by source, i.e.,
taxes, licenses, service charges, etc. Expenditures are recorded first by
function, then by activity and object of the expenditure. ,
General Fund expenditures are made primarily for current day -to -day
operating expenses and operating equipment. Capital expenditures for large -
scale public improvements, such as building, water and sewer projects or
streets, are accounted for elsewhere in the Capital Projects Funds or Enter-
prise Funds.
I
43-
CITY OF SEWARD
GENERAL FUND
BALANCE SHEET
June 30, 1987
With comparative totals for year ended June 30, 1986
44-
Fund balance
SETS 1187 1$
Cash on hand 650 650
Equity in Central Treasury 44 3.567.968
1.797.894 3.568.618
Receivables
2,824,003
Accounts 1,036,838 1,020,378
Accrued interest 17,239
Real property taxes 22,113 10,239
Personal property taxes
Sales taxes
101,145
12,909
42,014
5,195
Rents 6,258 7,986
Grants 4,250
Assessments 379.042 338.371
1,579,794 1,424,183
Less allowance for uncollectibles 74 ,2$i) 73.192)
Accounts and taxes receivable, net 1,505.513 1.350.991
Due from other funds 31,235
Notes receivable, less allowance for
uncollectible of $722,500 and $ -0- 726,500
Prepaid insurance 198.289 214. 5
Total assets 3,532,931 5,770,324
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable 156,274 153,255
Due to other funds 714,184
Accrued liabilities 100,623 90,912
Funds held in trust 1,708 1,527
Deferred revenues 450,323 1,141.005
Total liabilities 708.928 2100 8.83
44-
Fund balance
Reserved for prepaids 198,289 124,215
Unreserved:
Undesignated 2.625.714 3,545,226
3_.669,4412,824,003
Total liabilities and fund balance 3,532,931, 5,770,324
44-
CITY OF SEWARD i
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
Year ended June 30, 1987
45- 1
Variance
Favorable
REVENUES
Taxes
Udglet Actual Unf-avord e
General property 342,292 393,815 51,523
Sales 575.000 448.304 126.696)
Total taxes 9.17.292 482.118
Licenses and permits
Building permits 75,000 36,692 38,308)
Taxi permits 500 1,110 610
Animal control licenses 200 442 242
Auto license commissions 24,000 23,340 660)
Miscellaneous 250 445 195
Total licenses and permits 99.950 62.029
Intergovernmental revenues
Federal revenue sharing 13,550 13,550
State of Alaska shared revenues
General revenue sharing 234,150 302,298 68,148
Municipal assistance 275,993 271,368 4,625)
Fish tax 110,000 151,669 41,669
Liquor tax 17,500 15,889 1,611)
Amusement tax 50 408 92)
Total intergovernmental revenues 638.143 755.182 117.039
Charges for services
Administrative 883,091 944,289 61,198
Rents and leases 281,539 294,583 13,044
Computer 36,000 36,000
Television 33,000 46,015 13,015
Jail contract 250,000 240,000 10,000)
Police grant 39,000 41,916 2,916
Railroad surveillance 22,000 15,000 3,000
Work orders 160,099 109,656 50,443)
Recreation 12,338 23,525 11,187
Other 4.750 7,10-2 2.35
Total charges for services 1,711,817 1.758.086 46,269
Fines and forfeits
Fines and bails 12.000 13-49-5 49
Miscellaneous revenues
Interest 137,414 128,709 8,705)
Sale of land, equipment and gravel 7,000 126,697 119,697
Other 18.600 20.702 2_.102
Total miscellaneous revenues 163.E 276,108 113,094
Total revenues 3,542,216 3,707,019 164 803
OTHER FINANCING SOURCES
Operating transfers in (out) 18,300 1,098.944) 1.117.244)
Total revenues and other sources 3.560.516 2.608.07 952,441)
45- 1
1 -46-
CITY OF SEWARD
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BAIANCE CON'T.)
BUDGET AND ACTUAL
Year ended June 30, 1987
r
Variance
Favorable
EXPENDITURES Budget Actual Unfavorable)
General government
Mayor and Council
1 Personal services 15,500 15,303 197
Supplies 11,500 12,141 641)
Other services and charges 228,900 212,889 16,011
Capital outlays 1.000 1,000
Total Mayor and Council 256.900 240.333 lb•5
City Manager
Personal services 185,342 177,148 8,194
Supplies 2,500 4,312 1,812)
Other services and charges 17.090 15.706 1.384
Total City Manager 204.932 197.166 7._766
City Clerk
Personal services 97,638 96,292 1,346
O Supplies 3,100 3,426 326)
Other services and charges 10,325 9,223 1,102
Capital outlays 3.000 2,943 57
Total City Clerk 114,063 111.884 2. U2
Finance
Personal services
Supplies
256,880
15,000
241,833
15,862
15,047
862)
Other services and charges 21,300 16,943 4,357
Capital outlays 6.00Q 1.077 2.077)
Total finance 299_ -180 282.715 16,465
Economic development
Personal services
Supplies
58,336
5,200
57,538
3,831
798
1,369
Other services and charges 56,000 49._755 6.245
Total economic development 129.536 111.124 8.412
General servicesgovernment
Personal services 15,000 26,711 11,711)
Supplies 3,500 8,548 5,048)
Other services and charges 397,773 427,643 29,870)
Capital outlays 8.373 8.373)
Total general government
services 416.273 471,275 55.002)
Total general government 1,410,884 1,414,49 3-613)
1
1 -46-
CITY OF SEWARD
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (CON'T.)
BUDGET AND ACTUAL
Year ended June 30, 1987
EXPENDITURES
Public safety
Police, jail, animal control
Personal services
Supplies
Other services and charges
Capital outlays
Total police
Fire
Personal services
Supplies
Other services and charges
Capital outlays
Total fire
Building inspection /engineering
Personal services
Supplies
Other services and charges
Total building inspection
Total public safety
Public Works
Streets
Personal services
Supplies
Other services and charges
Capital outlays
Total streets
Shop
Personal services
Supplies
Other services and charges
Total shop
Buildings
Personal services
Supplies
Other services and charges
Total buildings
Total public works
837,115
14,475
107,406
16.500
975.496
114,645
7,580
51,790
11.295
185.310
179,859
1,450
25,625
206.934
1.362.2
47-
254,453
36,000
11,628
12,000
314.081
165,878
5,100
38.929
209.907
47,606
4,900
38.200
90.706
614.694
858,509
15,402
81,233
16.547
971.691
110,968
14,386
46,499
6.482
178.335
173,850
1,552
5-633
181.035
1.331.061
235,261
40,872
26,420)
159,615
3,577
18.190
181,182
44,963
4,506
35.395
84_. -8 4
515.959
Variance
Favorable
Unfavorable)
21,394)
927)
26,173
47)
3.805
3,677
6,806)
5,291
4.81.3
6.975
6,009
102)
19,992
25.899
36.679
19,192
4,872)
38,048
12.000
64.368
6,263
1,523
20.739
75
2,643
394
2.805
5.842
98.7
1
1
1
LEI
CITY OF SEWARD
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (CON'T.)
BUDGET AND ACTUAL
Year ended June 30, 1987
EXPENDITURES
Parks and recreation
Personal services
supplies
Other services and charges
Capital outlays
Total parks and recreation
Total expenditures
EXCESS OF REVENUES AND OTHER SOURCES OVER
UNDER) EXPENDITURES AND OTHER USES
FUND BALANCE, beginning of year
FUND BALANCE, end of year
dLze t
136,043
4,250
54,465
4,500
192,258
3.592.576
32,060)
3.669.441
3,637,381
48-
845,438) (813,378)
3.669 441
2,824,003 813 378)
Variance
Favorable
Actual U e
134,269 1,774
5,885 1,635)
51,842 2,623
191.996 7.262
3_,3.513 1.39.002
845,438) (813,378)
3.669 441
2,824,003 813 378)
7
CAPITAL PROJECTS FUNDS 1
Capital Projects Funds are established to account for the resources
expended to acquire assets of a relatively permanent nature. These funds
evolved from the need for special accounting for bond proceeds, grants and '
contributions for the acquisition of capital assets.
Capital Projects Funds provide a mechanism which enables administra-
tors to ensure that revenues dedicated to a certain purpose are used only for ,
that purpose and further enables them to report to creditors, and other
grantors of capital projects fund revenue, that their requirements regarding
the use of the revenue were fully satisfied.
Flood Disaster - To account for construction costs incurred in
repairing damages caused by the October, 1986 flood. Funded jointly by the
State and City.
Diesel Power - To account for diesel power generation costs, Funded
by the State.
Community Center - To account for the costs of planning, site
selection, and conceptual design of a combination senior citizen /community
activity center. Funds provided by a state grant.
Nash Road Boat Harbor Expansion - To account for the costs of a
feasibility study and the conceptual design of a new, one thousand slip, boat '
harbor. Funding provided by a state grant.
Boat Harbor Improvements - To account for design costs of a new,
custom built, marine emergency vessel. The vessel, expected to be forty -five ,
feet in length, will provide seaborne fire protection as well as search and
rescue capabilities. This fund also accounts for the costs of upgrading
several of the floating piers in the existing small boat harbor. Funded
jointly by the State and City.
t
L'
49- 1
CAPITAL PROJECTS FUNDS
Radio Translator - To account for the costs of a radio translator
capable of receiving and rebroadcasting the FM signal of the Anchorage public
radio station. Funded by a state grant.
Library Renovation - To account for construction costs incurred in
library renovation. Funding provided by the State, City, and local library
association.
Seward Marine Industrial Center - To account for the costs of the
various phases of Seward's marine industrial center. The center combines a
certified, 3000 DWT, synchrolift with over 100 acres of industrial uplands.
The City is now in the process of marketing the facility to potential lessees
interested in operating a ship repair business. The center became operational
in June, 1985. Funding provided primarily by state grants, supplemented by
City funding.
Other: To account for miscellaneous capital improvement projects.
Financing is provided primarily by State grants.
1 -50-
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEETS
June 30, 1987
With comparative totals for June 30, 1986
LIABILITIES AND EUD BALANCES
LIABILITIES
Accounts and contracts
payable
Due to other funds
Revenues received
in advance of
construction
Bid deposits
Total liabilities
FUND BALANCES (DEFICITS)
Unreserved:
Undesignated
Total liabilities
and fund balances
3,500 $ - $ - $ $
286,681
38,355 756,545 65,682 3,800
290,181 38,355 756,545 65,682 3,800
15.5,.779) - - 11.812
234,402 $38,355 1756,545,
51-
77,494 23,800
t
t
Boat
Commu- Boat Harbor
Flood pity Harbor Improve- Radio
ASSETS Disaster Center Expansion ments - Translator
Due from other funds 38,355 756,545 77,494 3,800
Grants receivable 234,402 -
Accounts receivable
Total assets 234,402 138,355 756,545 77,494 L3,800
LIABILITIES AND EUD BALANCES
LIABILITIES
Accounts and contracts
payable
Due to other funds
Revenues received
in advance of
construction
Bid deposits
Total liabilities
FUND BALANCES (DEFICITS)
Unreserved:
Undesignated
Total liabilities
and fund balances
3,500 $ - $ - $ $
286,681
38,355 756,545 65,682 3,800
290,181 38,355 756,545 65,682 3,800
15.5,.779) - - 11.812
234,402 $38,355 1756,545,
51-
77,494 23,800
t
t
1
Seward
Marine
Library Industrial Totals
Renovatjon Other renter 1987 1986
1,047,792 1,923,986 854,013
22,751 31,364 38 288,555 25,156
51.476 81.476 64
22,751 112,840. 11047,830 2,294,017 1,050,818
13,675 41,808 58,983 68,357
22,751 66,734 376,166 231,715
2,500 276,242 1,143,124 840,753
6.600
22,751 82,909 318,050 1,578,273 1,147,425
29.931 722,780 715.744 96,607)
22,751L 112,840 1,0471830 2,294,017 L1y050,818
r
52-
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year ended June 30, 1987
With comparative totals for June 30, 1986
53-
Boat Boat
Community Harbor Harbor
Center Expansion Improxemouts
18 $453 $
X18
453
453
453
18 - -
7.061) 1,812
7,043) - 11,812
7.043
S- 11 812
r
Flood Diesel
Disaster Power.
REVENUES
State grants 1,084,402 100,000
Local sources
Total revenues 1,084,402. 100,000
EXPENDITURES
Construction 1,010,831
Architect, engineer-
ing and all other 129,350 100,000
Land, buildings and
equipment
Total expenditures 1,140.181 100,000
Excess of Revenues
Over (Under)
Expenditures 55,779)
OTHER FINANCING SOURCES
Operating transfers
in (out)
Excess of Revenues
and Other Sources
Over (Under)
Expenditures 55,779)
FUND BALANCES (DEFICITS)
Beginning of year
FUND BALANCES, (DEFICIT)
End of year 55,779)
53-
Boat Boat
Community Harbor Harbor
Center Expansion Improxemouts
18 $453 $
X18
453
453
453
18 - -
7.061) 1,812
7,043) - 11,812
7.043
S- 11 812
r
r
i
i
Library
Renovgr.12J1
49,751
6.000
55,751
76,303
9,448
85,751
30,000)
Seward
Marine
Industrial
Other Center
40,407 $ 144,474
155.453 1A-99Z
195.860 159.371
154,973 -
47,456 365,445
202.429
6,569) (206,074)
Totals
1987 1986
1,419,505
176__30
1.595.855
567,690
2A2,573
850.263
1,242,107 50,000
652,152 1,703,086
ill -m
298,404) (1,052,805)
19,435 843,926
10.496 (114.146)
29,931 $ 729,780
812,351 (1,044,890)
96,607) 948.283
715,744 $ ( 961607 )
54-
CI'T'Y OF SEWARD
ALL CAPITAL PROJECT FUNDS
PROJECT TO DATE - SCHEDULE OF CONSTRUCTION PROJECTS
Beginning of Projects to June 30, 1987
55-
Boat
Boat Harbor
Flood Diesel Community Harbor Improve -
Disaster Power Center EUans ion
TOTAL PROJECT
AUTHORIZATION 1,850,000_ 10$ _0,0^ 258,400 1,996,400 112 603
REVENUES
State grants 1,084,402 100,000 58,064 177,921 9,318
Local sources
Total revenues 1,084,402 100,000 58,064 177,921 9,318
TRANSFERS FROM OTHER
FUNDS 1,357 11.812
Total revenues
and transfers 1,084,402 2100,000 59,421 177;..921 2Sy1,130
EXPENDITURES
Construction 1,010,831 12,154 9,318
Architect,
engineering and
all other 129,350 100,000 47,267 177,921
Land, buildings and
equipment
Total expenditures 1,140,181 100,000 59,k21 177,921 9,318
55-
Seward
Marine
Radio Library Industrial
Tranajator Renovation Other Center
42,132 90 000 830,777 18,207,295
34,200 49,751
6, 090
476,540
323.M
10,234,924
19,597
34,200 55,751 799,593 10,254,521
r4,132 30.000 36.500 5.360.851
38,332 85 751 836,093 15,615,372
34,200 76,303 310,573 9,607,928
4,132 9,448 495,589 5,277,664
38,332 85 751 1806,162, 14,885,592
r
t
56-
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
SEWARD MARINE INDUSTRIAL CENTER
COMBINING BALANCE SHEET
June 30, 1987
With comparative totals for June 30, 1987
ACTS
Due from other funds
Grants receivable
Total assets
UTILITIES AND FUND BALANCES
LIABILITIES
Accounts and contracts payable
Due to other funds
Revenues received in advance of
construction
Total liabilities
FUND BALANCES (DEFICITS)
Undesignated
Total liabilities and fund
balances
57-
58
Claim
Rail Civil Contingency
and QrAdjqj ExWansion
38 41,712
876,300 $ - 171,492
38
38 171 492
876_300 $ 38 17,. 1, 4„92
57-
58 38 $ 41,712
276.242
276,300 38 41,712
600.000 129J80
876,300 38 171 492
Totals
im Im
1,047,792
38
13,911
5.322
1,047830 19,233
41,808 $ 68,317
60,365
276.242 4.697
318,050 133,379
14.146)
1,047,830 19,233
58-
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
SEWARD MARINE INDUSTRIAL CENTER
COMBING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year ended June 30, 1987
With comparative totals for June 30, 1986
REVENUES
State grants
Local sources
Total revenues
EXPENDITURES
Construction
Architect, engineering and all other
Total expenditures
Excess of revenues over
under) expenditures
OTHER FINANCING SOURCES (USES)
Operating transfers in (out)
Excess of revenues and other
sources (uses) over (under)
expenditures
FUND BALANCES (DEFICIT), beginning of year
FUND BALANCES (DEFICIT), end of year
59-
Claim
Rails & Civil Contingency
Cradle$ Expansion
144,436 $ 38 $ -
1.020 13.877
145_.45-6 38 — 13,877
145.456 _ 3g 1
145,456 ?14, 1
206,074)
W-2111130 K'11:11111111 1
600,000 - 243,926
1,14.146)
6001000 $ 129,780
i
i
Totals
144,474
14.897
5,322
159.371 5.322
365.4j5 755.446
365,445 Z55
206,074) 750,124)
1.050.000 42.776
843,926 707,348)
114.146) 593.202
1 729,780 114,146)
60-
CITY OF SEWARD
SEWARD MARINE INDUSTRIAL CENTER
PROJECT TO DATE - SCHEDULE OF CONSTRUCTION PROJECTS
Beginning of Projects to June 30, 1987
Claim
Rails Civil Contingency
Crauu Expansion II
TOTAL PROJECT AUTHORIZATIONS $2,730,000 $1,963,8
REVENUES
State grants 149,758 38
Local sources 1.020 5,5
Total revenues 150,778 38 5,517
TRANSFERS FROM (TO) OTHER FUNDS 600.000 1.919.941
Total revenues and transfers 750,778 1,925,460
EXPENDITURES
Construction
Architect, engineering and all other 150J78 38 1.795.684
Total expenditures 150,778 38 1,7 9 0
61-
State State
Grant Ship Grant Transfer
835 Lift-1 8-_611 Pit Mitigation Total
3,082,347 659 750 7,443,841 2,077,480 250 Q00 1812007,295
4,001,128 6,084,000 10,234,924
9,450 3,610
4,010,578 6,087,610 10,254,521
928,231) 384,889 1,356,284 1,,923,142 104,824 5,360.851
3,082,347 2384,889 7,443,894 1,923,142 104,824 15_ 62
1,628,350 282,082 5,799,798 1,876,218 21,480 9,607,928
1,453,997 102,807 3,,fj44,096 46,924 83.344 5,277,664
3,082,347 384,889 714443 894 LI.6923,142 104,824, 14,885,592
1
62-
ENTERPRISE FUNDS
Enterprise Funds are established to account for the financing
of self - supporting activities of governmental units which render
services to the general public on a user charge basis. Enterprise
Funds are maintained on the accrual basis of accounting.
Electric Fund - to account for the provision of electricity
to the residents of the City and certain residents of the Kenai
Peninsula Borough. All activities necessary to provide electrical
services are accounted for in this fund, including, but not limited to,
administration, operations, maintenance, financing and related debt
service, and billing and collection.
Water and Sewer Fund - to account for the provision of water
and sewer services to the residents of the City and certain residents
of the Kenai Peninsula Borough. All activities necessary to provide
such services are accounted for in this fund, including, but not
limited to, administration, operations, maintenance, financing and
related debt service, and billing and collection.
Harbor Fund - to account for the provision of harbor services
to the public on Resurrection Bay. All activities necessary to provide
such services are accounted for in this fund, including, but not
limited to, administration, operations, maintenance, financing and
related debt service, and billing and collection.
Hospital Fund - to account for the provision of hospital
services to the public.
I
1 -63-
CITY OF SEWARD
COMBINING BALANCE SHEET
ALL PROPRIETARY FUND TYPES
June 30, 1987
With comparative totals for June 30, 1986
Electric Water /Sewer
ASSETS Fund Fungi_
CURRENT ASSETS
Cash
Cash with fiscal agent 69,126
Receivables
Accounts 159,030 4,102
Allowance for uncollectibles (4.000) (84)
Accounts receivable, net 155.030
Special assessments - 28,980
Grants 54,563 83,378
Prepaids - -
Due from other funds -
Inventory 463.155 44,883
Total current assets 741.874 161,259
PROPERTY, PLANT AND EQUIPMENT 23,299,090 12,378,394
Less accumulated depreciation U-929.650) (2.191.874)
Property, plant and equipment. net 19.369.440 ^10. 86.524
Capitalized leased assets, net of
accumulated amortization of $440 - -
20,111,314 $10,347,783
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts and contracts payable $ 163,053 $ 2,003
Customer deposits 82,669 -
Deferred revenues 914 16,071
Due to other funds 736,332 1,330,580
Accrued liabilities 154,566 18,828
Current maturities of bonds payable 273,000 71,000
Current portion of capitalized lease
obligation - -
Total current liabilities 1,410,534 1,438,482
OTHER LIABILITIES
Bonds payable, excluding current
maturities 7,075,000 720,000
Capitalized lease obligation - -
Total liabilities 8.485.534 _ 2.158.482
FUND EQUITY
Contributed capital 11,912,401 10,710,194
Less: amortization of contributions
in aid of construction (598,357) (1,787,184)
Retained earnings (deficit) 311.736 (733.709)
Total fund equity 11,625,7N 8,189,301
20,111,314 $10,347,783
64-
Hadar. Em.4
Hospital
Fund
Totals
1987 1986
209 S 160_601 S 160.80 205, 706
69.126 74.051
48,335 520,188 731,655 675,055
X109.688} 113.772) 216.405)
48.335 410.500 617.883 458.650
28,980
137,941 137,941
32,101 32,101 22,830
487, 933 487,933 1,365,305
111.375 619.413 404.661
536.468 714.577 2.154.178 2.669.144
1,384,032 19056,044 389117,560 37,797,545
499,772) 1554,277) 7,175,569) 5.830,554)
884.260 501.767 30.941.991 31.966.991
25.960 25.960
1,420,7228 JL242,3041 33,122,129 34,636,135
42,354 159,527 366,937 1,708,162
82,669 109,865
16,985 1,976
2,066,912 1,273,419
49_445 115,971 338,810 312,816
344,000 302,000
5.200 5.200
91,799 280,698 3,221,513 3,708,238
1
7,795,000 7,049,156
19.934 19,934
91.799 300.632 11.036.447 10,757.394
793,732 23,416,327 23,323,075
309,973) 2,695,514) 1,864,553)
845.170
1,- 328,929
1.672
941.672
1.364.869
22,085._682
2.420.219
23.878.741
1,420,728 1,242,304 33,122,129 34,636,135
65-
CITY OF SEWARD a
ALL ENTERPRISE FL?NDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
Year ended June 30, 1987
With comparative totals for year ended June 30, 1986
OPERATING REVENUES
Residential sales
Commercial sales
Industrial
Governmental sales
City of Seward sales
Moorage
Patient service revenues, net
Marine industrial center
Miscellaneous
Total operating revenues
OPERATING EXPENSES
Power
Distribution
Pumping
Supplies and maintenance
Personnel services
Patient and general service
Administration and general
Marine industrial center
Depreciation
Total operating expenses
Operating income (loss)
NON- OPERATING REVENUES (EXPENSES)
Interest
Bond interest
Other
Fiscal agent fees
Contributions
Total non - operating revenues (expenses)
Income (loss) before operating transfers
and extraordinary item
OPERATING TRANSFERS IN (OUT)
Net income (loss) before extraordinary item
LOSS ON DEBT EXTINGUISHMENT
Net income (loss)
TRANSFERS ON CONTRIBUTED ASSETS
Increase (decrease) in retained earnings
RETAINED EARNINGS (DEFICIT), beginning of year, restated
RETAINED EARNINGS (DEFICIT), end of year
66-
Zlectric
Fund
Water /Sewer
Fund _-
1,258,666 310,570
1,084,618 145,310
193,039 26,793
700,427 69,927
255,581 19,680
326.462 52.249
3.818.793 624.522
311,736 733,709)
1
1,419,759
211,843 73,736
80,843
8,527
1,107,225 303,733
851.970 358.614
3,590.6 8 4
228.096 200.924)
7,154) 72,862)
417,312) 55,048)
500)
424.966) 127,910)
196,870) 328,834)
196,870) 328,834)
1,190,471)
1,387,341) 328,834)
418,573 366_.876
968,768) 38,042
1.280.504 771.751)
311,736 733,709)
1 -67-
1,491,797
276,158
102,256
231,145
296,375
1,187,166
1,986,758
c : •.1
219,347
295,180)
18,333
500)
471,772
413.772
915,649
20_ -6
936,292
936,292
492.180
1,428,472
991 747
2.420,219
r
1,419,759
Harbor Hospital Totals
Fund 1987 198Fund
199,566
1,569,236 1,529,232
323,130
1,229,928 1,194,697
1,
215
413
219,832 211,883
792,355
770,354 870,029
275,261275,261 326,354
499, 050 499,050 493,863
454,316)
1,555,538 1,555,538 1,491,333
64,028 64,028
7,366
271.206 56.636 706.553 763.446
472,740)
834.284 1,6121174 6.889.780 6&99.837
1 -67-
1,491,797
276,158
102,256
231,145
296,375
1,187,166
1,986,758
c : •.1
219,347
295,180)
18,333
500)
471,772
413.772
915,649
20_ -6
936,292
936,292
492.180
1,428,472
991 747
2.420,219
1,419,759
285,579
80,843
199,566 208,093
323,130 323,130
1,
215
413 1,215,413
190,793 792,355 2,394,106
246,488 246,488
1.355.59586.389
1.046.366
x$..722
2.066.490 7.529.006
212.082) 454,316) 639.226)
147,351 7,366 74,701
380) 472,740)
1.
802
20812 22,614
362,089
500)
362.089
148.773 390.267 13.836)
63,309) 64,049) 653,062)
11..811)
75,120) 64,049)
11.811)
664,873)
S1.190,47-1)
75,120) 64,049) 1,855,344)
45.512 830.961
29,608) 64,049) 1,024,383)
874.778 1.005,72] 2.389,25-2
845,170 941,672_ 1,364,869
1 -67-
1,491,797
276,158
102,256
231,145
296,375
1,187,166
1,986,758
c : •.1
219,347
295,180)
18,333
500)
471,772
413.772
915,649
20_ -6
936,292
936,292
492.180
1,428,472
991 747
2.420,219
CITY OF SEWARD 1
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
ALL ENTERPRISE FUNDS '
Year ended June 30, 1987
With comparative totals for year ended June 30, 1986
Electric Water /Sewer I
SOURCES OF WORKING CAPITAL
Operations
and equipment,
Earnings (loss) before extraordinary item 196,870) 328,834)
136,913
Item not requiring working capital -
Current bond maturities
Depreciation 851,870 358,614
Removal of Rose Memorial Fund
Transfer of special assessment fund deficit 30,967)
Loss on sale of equipment
554,384 29,301
Working capital provided (used) by
Increase (decrease) in working capital 100,616
operations before extraordinary item 655,000 1,187)
Extraordinary item - loss on debt extinguishment 1.190.471)
i
ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL
Working capital provided (used) by
Increase (decrease) in current
operations 535,471) 1,187)
Proceeds from long -term debt 1,190,471
655 000 1,187)
Cash with fiscal agent
USES OF WORKING CAPITAL
Acquisition of property, plant and equipment,
net of contribution -in -aid 136,913 2,145
Current bond maturities 417,471 27,156
Removal of Rose Memorial Fund
554,384 29,301
Increase (decrease) in working capital 100,616 3_01 488)
i
ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL
Increase (decrease) in current assets
Cash
Cash with fiscal agent 4,925)
Receivables
Accounts, net 104,795 4,011
Special assessments 28,980
Accrued interest
Grants
Prepaids
Due from other funds 859,199)
Inventory 200,419 1.746
558,910) 34.737.
Increase (decrease) in current liabilities
Accounts and contracts payable 1,409,052) 11,492)
Customer deposits 27,196)
Deferred revenues 1,062) 16,071
Due to other funds 736,332 57,161
Accrued liabilities 11,548) 2,485
Current maturities of bonds payable 53,000 1,000
659,526) 65,225
3$ Increase (decrease) in working capital 100,61b 30,488)
68-
1
Harbor Hospital Totals
Fund Fund 1987 1986
75,120) 64,049) 664,873) 936,292
86.389 61,090 1,357,963 809_673
30,967)
282
11,269 2,959) 662,123 1,746,247
1,190,471)
11,269 2,959) 528,348) 1,746,247
26.000 1,216,471
11.269 23.041 688.123 1.746.247
70,808 55,804 265,670 6,096,128
6,066 450,693 289,758
0870.8.q 61.870 716 363
2.111
59,539) 38,829 z (28,240) 4,641,750)
44,905) 44,905) 4,894,967)
4,925) 2,185
16_833) 67_260 159,233 85,461)
28,980
156,488)
1,753,225)
9,271 9,271 4,853)
18,173) 877,372) 954,533
12.587 214,752 37,124
35.006) 44.213 514.,966) 5.901.152)
22_572 57 413 1,340,559) 634,647
27,196) 53,530)
15,009 644,164)
13,961 21,096
793,493
25,994
1,175,671)
44,480)
000) 4.533 46.533 23.796
W24,
533 83.042 486.726) 1 259.402)
59,539) 38,829 28,240) 4,641,750)
69-
FIDUCIARY FUND
I
Deferred Compensation Fund - to account for the deferred '
compensation of certain participating employees, which they have
elected to receive at a future date.
70-
1
11
1
t
i
CITY OF SEWARD
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Year ended June 30, 1987
ASSETS
Restricted funds
LIABILITIES
Due to City employees
Balance Balance
July 1, June 30,
1966 Dguctions 1987
686,194, $210,182 $81.2)5 $815,171
686,194 $210,182
71-
81,205 1815,171
1
GENERAL FIXED ASSETS GROUT' OF ACCOUNTS
1
1
The General Fixed Assets Group of Accounts are established
for controlling the City's sizeable investment in fixed assets, which '
are tangible assets of significant value having a life which extends
beyond a year. No depreciation is provided on such assets. This
control also allows establishing custodial responsibility for the '
assets.
The investment in fixed assets of the Enterprise Funds is
accounted for in those proprietary funds.
72- 1
CITY OF SEWARD
SCHEDULE OF GENERAL FIXED ASSETS BY SOURCES
June 30, 1987
With comparative totals for .Tune 30, 1986
1
1987 128k
GENERAL FIXED ASSETS
Land 19,252,372 19,217,362
Buildings
Improvements other than buildings
6,529,112
38,070,008
6,529,112
38,070,008
Equipment 1.119.88§ 1,928,539
Total general fixed assets 64,9714380 64,845,021
INVESTMENTS IN GENERAL FIXED ASSETS FROM
Prior years data 54,051,100 54,051,100
Capital projects funds
State grants 6,238,706 6,238,706
General fund revenues 4,666,099 4,539,740
Federal revenue sharing 15.475 15,475
1 Total investment in general
fixed assets 64,971,380 64,845,021
1
1
73-
CITY OF SEWARD
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - EQUIPMENT
BY FUNCTION AND ACTIVITY
Year ended June 30, 1987
GENERAL GOVERNMENT
Mayor and Council
City Manager
City Clerk
Finance
Economic development
General service
Total general government
PUBLIC SAFETY
Police
Jail
Animal control
Fire
Engineering
Total public safety
PUBLIC WORKS
Streets
Shop
Municipal building
Television
Ship lift
Total public works
PARKS AND RECREATION
Recreation
Teen Center
Total parks & recreation
Total equipment
Equipment Equipment
June 30, JM Additions Deductions June
12,719 12,719
40,599 40,599
22,444 2,943 25,387
107,193 8,077 115,270
27,100 27,100
23,663 57.957
243.718 18-977 312,695.
137,833
20,042
11,979
203,536
445.993
260,676
6,884
3,831
10,068
2.483
283,E
40,813
14.073
54.886
1,028,539
15,547 - 153,380
1,000 - 21,042
11,979
5,825 - 209,361
72.603
22.372 - __.__468,365
91 349
260,676
6,884
3,831
10,068
43
283,942
40,813
14,073
54.886
1 1 199 , 888
n
1
74- 1
P
GENERAL LONG -TERM DEBT GROUP OF ACCOUNTS
1
This group of accounts records the unmatured principal of
long -term general obligation bonds and the long -term portion of accrued
annual leave payable from general revenues and backed by the full faith
and credit of the City.
1
1 -75-
1
1
1
CITY OF SEWARD
SCHEDULE OF GENERAL LANG -TERM DEBT
AMOUNT AVAILABLE AND TO BE PROVIDED FOR THE
PAYMENT OF GENERAL.. LONG -TERM DEBT
June 30, 1987
With comparative totals for June 30, 1986
Amount to be provided in future years
excluding amounts allocated to Harbor,
Electric, and Water /Sewer Enterprise Funds
Accrued annual leave
Note payable
General obligation bonds payable
Less - Bonds allocated to Harbor,
Electric, and Water /Sewer Enterprise Funds
76-
KIN
181,299
133,141
48,158
8,072,000
Q72.00Q
181,299.
M.
138,660
138-660
7,258,000
7.258,000
138,660
CITY OF SEWARD
SCHEDULE OF BONDED INDEBTEDNESS - ALL FUNDS
June 30, 1987
GENERAL BONDED DEBT
1962 Water Improvement
1967 Harbor Improvement
1976 Water and Sewer
1980 Electric Improvement
1984 Electric Improvement
1986 Electric Improvement
Total General Obligation
Bonds (includes $8,072,000
of bonds outstanding allo-
cated to Enterprise Funds)
ACCRUED ANNUAL LEAVE
NOTE PAYABLE
ELECTRIC FUND
1957 Electric Revenue Bonds
Total Bonded Indebtedness
Interest
Rate __ Hate of Issues
Date of
Maym"y
3.375% September 1, 1962 1974 -1991
4.125% October 11, 1967 1968 -1987
8.00 % to
7.25 8 June 1, 1976 1977 -1996
7.00 8 August, 1980 1982 -2001
12.50 % to
9.50 % October 19, 1984 1985 -1994
5.00 $ to
7.50 8 August 1, 1986 1986 -2004
25.75 % April, 1987 1990
5.50 % April 15, 1957 1973 -1987
77-
Additions
Outstanding (Retirements) Outstanding
Debt June 30, During June 30, Interest
luslas 1986 the Year 1987 Expense
56,000 2,132
380
735,000
226,000 66,000 10,000)
162,000 12,000 12,000)
1,200,000 795,000 60,000)
1,700,000 1,465,000 60,000)
1 5,000,000 4,920,000 3,745,000)
4,845.-k72 4.701.000
1
13,133,472 7,258,009 814,000
w
138,660 5,519)
49,584 48,158
400.000 137.000 70.000)
13,583,056 760 786,639
1
1
78-
56,000 2,132
380
735,000 52,916
1,405,000 100,450
1,175,000 115,613
4.701. QQQ 195,422
l X60
133,141 -
48,158 2,558
67,000 _ 6,327
8,320,299 2475,798
1
tPART III
1 STATISTICAL SECTION
L
1 -79-
CITY OF SEWARD
GENERAL FUND EXPENDITURES BY FUNCTION
IAST TEN FISCAL YEARS
UNAUDITED)
Debt
149,600 1,712,297
139,954 1,657,796
25,952 1,911,761
t
2,198,194
38,038 3,144,517
22,119 3,580,176
1)
3,573,709
4,078,729
3,906,320
3,453,513
General Public Public Parks and
G2Y2nment, Safety Works Recreation
1977 -78 786,162 506,797 258,801 10,937
1978 -79 653,722 580,243 249,035 34,842
1979 -80 773,588 677,821 397,951 36,449
1980 -81 988,845 811,165 318,674 41,173
1981 -82 1,662,099 880,760 433,169 130,451
1982 -83 1,518,263 1,259,195 595,628 184,971
1983 -84 1,353,609 1,362,299 546,567 311,234
1984 -85 1,641,257 1,594,281 586,308 256,883
1985 -86 1,475,315 1,688,989 542,857 199,159
1986 -87 1,414,497 1,331,061 515,959 191,996
1
1
1)
Debt Service expenditures recorded in Debt Service Fund.
80-
Debt
149,600 1,712,297
139,954 1,657,796
25,952 1,911,761
38,337 2,198,194
38,038 3,144,517
22,119 3,580,176
1)
3,573,709
4,078,729
3,906,320
3,453,513
CITY OF SEWARD
GENERAL FUND REVENUES BY SOURCE
LAST TEN FISCAL YEARS
UNAUDITED)
Licenses
81-
Inter-
448,465
356,222
330,284
617,834
846,732
1,366,788
1,274,009
1,160,034
798,506
755,182
Charges
for
Services
219,764
289,180
297,860
480,028
2,686,512
2,558,494
1,983,673
1,918,817
2,693,839
956,580
r
I
1
and
Year Taxes Permits__
1977 -78 487,280 12,577
1978 -79 537,910 11,384
1979 -80 542,214 8,945
1980 -81 574,070 17,249
1981 -82 356,047 19,543
1982 -83 346,153 65,621
1983 -84 499,542 69,355
1984 -85 597,983 62,979
1985 -86 799,563 187,393
1986 -87 842,119 62,029
81-
Inter-
448,465
356,222
330,284
617,834
846,732
1,366,788
1,274,009
1,160,034
798,506
755,182
Charges
for
Services
219,764
289,180
297,860
480,028
2,686,512
2,558,494
1,983,673
1,918,817
2,693,839
956,580
r
I
1
Payment Rents
Fines and in Lieu Surplus and
Forfeitures of Taxes ales jefifig-I Miscellaneous Total
4,251 70,000 70,062 134,413 441,967 1,888,779
6,527 76,143 147,075 155,478 321,389 1,901,308
3,613 140,874 138,079 329,294 1,791,163
11,429 154,672 20,787 227,170 151,108 2,254,347
11,976 196,049 3,249 173,188 808,763 5,102,059
r17,608 233,315 6,145 193,066 460,429 5,247,619
12,027 331,438 264,955 207,234 757,580 5,399,813
16,122 388,467 2,229 245,040 568,938 4,960,609
9,152 472,813 2,043 255,529 198,641 5,417,479
13,495 506,923 126,697 294,583 149,411 3,707,019
CITY OF SEWARD
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
UNAUDITED)
1)
Includes some reassessment collections not included in original tax levy.
Source: Kenai Peninusla Borough
83-
Total Percent Delinquent
Tax Current Tax of Levy Tax
Year I&IX Collections Collected Collecti2na
1977 -78 506,533 466,028 92.0 21,252
1978 -79(1) 486,633 459,586 94.4 76,661
1979 -80 510,106 493,798 96.8 46,618
1980 -81 549,417 526,145 95.8 46,094
1981 -82(1) 312,199 260,729 83.5 95,318
1982 -83 239,757 229,177 95.6 7,419
1983 -84 313,141 303,695 97.0 4,302
1984 -85 323,749 313,392 96.8 4,634
1985 -86 571,294 536,059 93.8 3,334
1986 -87 427,526 385,318 90.1 1,764
1)
Includes some reassessment collections not included in original tax levy.
Source: Kenai Peninusla Borough
83-
it
n
1 -84-
Outstanding
Total Tax Delinquent
Collections Outstanding Taxes
Total Tax As a Percent Delinquent As a Percent
gol,gc,tions of Levy Taxes of Total Lgyy.
487,280 96.2 40,505 8.0
536,247 110.2 27,047 5.6
540,416 105.9 16,308 3.2
572,239 104.2 23,272 4.2
356,047 114.0 51,470 16.5
236,587 98.7 16,805 7.0
307,997 98.3 18,640 5.9
318,026 98.2 54,438 16.8
539,393 94.4 52,253 9.1
387,082 90.5 123,258 28.8
it
n
1 -84-
Year
1977 -78
1978 -79
1979 -80
1980 -81
1981 -82
1982 -83
1983 -84
1984 -85
1985 -86
1986 -87
CITY OF SEWARD
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
UNAUDITED)
Real
Assessed
Val]AS
17,827,710
26,590,950
27,891,100
37,540,850
38,884,425
37,817,000
63,395,090
60,596,630
77,827,300
86,452,400
erty
Estimated
Actual
Value
19,153,287
30,164,030
36,847,800
48,668,600
41,796,200
43,917,949
66,015,400
64,748,500
85,454,400
102,797,600
Source: "Alaska Taxable ", State of Alaska
85-
Personal Property
Estimated
Assessed Actual
Value Value
8,987,150 8,987,150
10,162,660 10,162,660
13,116,959 13,117,000
20,364,325 20,364,300
24,950,050 29,565,200
16,369,047 19,564,285
15,493,670 21,587,900
20,743,586 20,743,586
56,716,200 56,716,200
59,765,300 74,541,800
i
f1
J
i
Ratio of Total
2tal „_,.,.. Assessed
Estimated to Total
Assessed Actual Estimated
Value Value Actual Value,_
26,814,860 28,140,437 95.29
36,753,610 40,326,690 91.14
41,008,059 49,964,800 82.07
57,905,175 69,032,900 83.88
63,834,475 71,361,400 89.45
54,186,047 63,482,234 85.36
78,888,760 87,603,300 90.05
81,340,216 85,492,086 95.10
134,543,500 142,170,600 94.64
146,217,700 177,339,400 82.45
86-
CITY OF SEWARD
PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS
PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
UNAUDITED)
Source: (
1)
City Mill Levy
2)
Kenai Peninsula Borough
87-
i
1
1
Seward City
Year General Lod(
1)
Aoroueh(
2)
Total
1977 -78 18.000 5.000 23.000
1978 -79 13.500 4.500 18.000
1979 -80 13.500 2.500 16.000
1980 -81 12.500 2.500 15.000
1981 -82 7.000 1.750 8.750
1982 -83 7.000 1.250 8.250
1983 -84 5.000 2.500 7.500
1984 -85 5.000 1.750 6.750
1985 -86 5.000 1.750 6.750
1986 -87 3.000 4.000 7.000
Source: (
1)
City Mill Levy
2)
Kenai Peninsula Borough
87-
i
1
1
CITY OF SEWARD
SPECIAL ASSESSMENT COLLECTIONS
Since May 29, 1979 (Inception)
UNAUDITED)
Ratio of
Current Current Collections Total
Assessments Assessments to Outstanding
Fiscal Years Due Collections Amount Due Assessments
May 29, 1979
Assessed) 247,023
1978 -79 34,940 6,831 19.55 240,192
1979 -80 21,603 35,793 165.69 204,399
1980 -81 28,668 29,943 104.45 174,456
1981 -82 17,589 29,238 166.23 145,218
1982 -83 17,563 28,542 162.51 116,676
1983 -84 14,828 39,998 269.70 76,679
1984 -85 17,146 19,364 112.93 57,315
1985 -86 16,636 13,471 80.97 382,215
1986 -87 14,896 14,864 99.79 408,022
88-
CITY OF SEWARD '
RATIO OF NET GENERAL BONDED DEBT
ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
L&ST TEN FISCAL YEARS
UNAUDITED)
1
Source: (
1)
State of Alaska
2) Kenai Peninsula Borough ,
89- 1
Debt
Payable
From
1)
Value Assessed (
2)
Gross Enterprise
Year Population In - Thousands) Bonded Debit Revenues
1977 -78 2,130 26,815 2,029,000 593,000
1978 -79 1,778 36,754 1,896,000 520,000
1979 -80 1,843 41,008 1,827,555 511,555
1980 -81 1,943 57,905 3,401,204 451,204
1981 -82 1,828 63,834 3,266,010 362,000
1982 -83 1,828 54,186 3,052,000 325,000
1983 -84 1,871 78,889 2,874,000 265,000
1984 -85 2,072 81,340 7,682,000 203,000
1985 -86 2,293 134,544 7,395,000 137,000
1986 -87 2,279 146,218 8,139,000 67,000
1
Source: (
1)
State of Alaska
2) Kenai Peninsula Borough ,
89- 1
1 -90-
Ratio of
Net Bonded Net
Net Debt to Bonded
Bonded Assessed Debt Per
Debt Value Capita
1,436,000 0536 674
1,376,000 0374 774
1,316,000 0321 714
r2,950,000 1,5180509
2,904,010 0455 1,589
2,727,000 0503 1,492
2,609,000 0331 1,394
7,479,000 0919 3,610
7,258,000 0539 3,165
8,072,000 0556 3,571
r
1 -90-
LEGAL DEBT MARGIN 1
J=e 30, 1987 1
No debt limit mandated by law.
91- 1
CITY OF SEWARD
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
Tune 30, 1987
UNAUDITED)
Amount
Applicable to
Citv of Sewar—d
S 6,728.715
6.728.715
14,800,715
r(')Based upon ratio of City of Seward total assessed value (real and
personal property) to total assessed value of Kenai Peninsula Borough.
r
92-
1
r
Percentage
Net Debt Applicable to
Jurildiction Outstanding pity of Seward
Kenai Peninsula Borough Sl 4.115.000 4.1 (
1)
Total overlapping debt 164.115.000
City of Seward 8.072.000 100.0000
Total direct debt 8.072.000
Total direct and
overlapping debt 2172,187,000
1
1
1
r
1
r
1
Amount
Applicable to
Citv of Sewar—d
S 6,728.715
6.728.715
14,800,715
r(')Based upon ratio of City of Seward total assessed value (real and
personal property) to total assessed value of Kenai Peninsula Borough.
r
92-
THIS PAGE LEFT INTENTIONALLY BLANK
u
F,
I
CITY OF SEWARD
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES
LAST TEN FISCAL YEARS
UNAUDITED)
r
r
Ratio of
Debt Service
Total Total to Total
Debt General General
Year PrinniRl Interest Servire E32enditures F42enditurea
1977 -78 53,000 96,600 149,600 1,712,297 8.74
1978 -79 51,000 88,954 139,954 1,657,796 8.44
1979 -80 16,275 9,677 25,952 1,911,761 1.36
1980 -81 11,350 26,987 38,337 2,198,194 1.74
1981 -82 12,194 25,844 38,038 3,144,517 1.21
1982 -83 11,377 10,742 22,119 3,580,176 62
1983 -84 9,000 881 9,881 4,078,729 27
1984 -85 9,000 544 9,544 4,061,313 23
1985 -86 10,000 188 10,188 3,906,320 26
1986 -87 3,453,513
93-
CITY OF SEWARD ,
DEMOGRAPHIC STATISTICS
LAST TEN YEARS '
UNAUDITED)
Source: (1)State of Alaska '
2)U.S. Census
3) Kenai Peninsula School System '
4) Alaska Department of labor
N/A - Not Available ,
94-
I
For
Fiscal
VJ,Lfiion(
1) Tnco=
Medium
Aae (
2)
Yeas
1977 -78 2,130 9,149 28.4
1978-79 1,778 10,731 N/A
1979 -80 1,843 12,044 N/A
1980 -81 1,943 13,558 N/A
1981 -82 10828 15,289 28.7
1982 -83 1,828 N/A N/A
1983 -84 1,871 N/A 28.6
1984 -85 2,072 N/A 28.7
1985 -86 2,293 N/A 28.7
1986 -87 2,279 N/A N/A
Source: (1)State of Alaska '
2)U.S. Census
3) Kenai Peninsula School System '
4) Alaska Department of labor
N/A - Not Available ,
94-
1 -95-
Drivers
Unemployment (4)
Rate
Licenses
Issued
11.5 974
13.5 1,147
13.6 1,165
11.4 1,186
13.4 1,417
15.9
Education
Level in
945
N/A
Years of
N/A N/A
Formal
Srrh20linat2
School
Enrollment
3
N/A 451
N/A 457
N/A 448
N/A 450
N/A 472
N/A 468
N/A 471
N/A 565
N/A 583
N/A 580
1
1
1 -95-
Drivers
Unemployment (4)
Rate
Licenses
Issued
11.5 974
13.5 1,147
13.6 1,165
11.4 1,186
13.4 1,417
15.9 737
14.9 945
N/A 1,022
N/A N/A
N/A N/A
1 -95-
CITY OF SEWARD
PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS
LAST TEN FISCAL YEARS
UNAUDITED)
ResidentialCommercial
Sonstruction
Number
motion
Year of, Matts Value
1977.78 3 790,000
1978 -79 46 1,721,000
1979 -80 1 350,000
1980 -81 3 1,272,000
1981 -82 9 2,632,593
1982 -83 7 2,078,000
1983 -84 42 12,560,425
1984 -85 36 9,849,952
1985 -86 49 35,738,777
1986 -87 34 448,475
Residential
CoUltzU motion Property
Number Bank Deposits Value
of Units Value jn ThousandsE)(
1)
Total
21 755,000 10,460 28,140,437
4 256,000 11,828 40,326,690
2 166,000 13,024 49,964,800
4 234,000 N/A 69,032,900
23 392,946 14,292 71,361,400
37 2,752,500 14,835 64,482,234
34 958,101 15,263 87,603,300
38 2,539,790 17,875 85,492,086
38 2,185,253 18,778 142,170,610
44 768,493 23,438 177,339,400
Source: MBank deposits from individual bank managers.
N/A - Not Available
96-
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1! CITY OF SEWARD
LOCAL UNEMPLOYMENT RATE
ALL YEARS FOR WHICH INFORMATION IS AVAILABLE
UNAUDITED)
Notes
Source
1
9X Dim lu
16.5 16.7 13.4
13.8 14.3** 17.6
15.9 18.5 17.9
12.3 13.4 13.1
15.6 16.5 20.4
17.0 16.4 22.8
16.1 15.5 20.7
14.7 14.9 * **
14.7 16.1 * **
Detailed information not available
1977 FY Pipeline Requirements
1978 FY High Fishing /Labor Force Dropped
1979 FY Labor Force Dropped
1982 FY Labor Force Drop /Employment Drop
State Department of Labor
97-
14.1
16.0
17.0
12.8
17.8
21.1
22.8
du
15.6
16.5
12.9
13.9
16.8
19.9
21.2
Apr dU Luue
10.4 18.0 7,0*
16.1 16.0 14,3
11.2 9.8 8.0
13.1 12.1 13.8
12.1 12.5 11.1
18.8 19.8 12.4
17.6 15.4 9.6
Annual
1 Y-ear Average July 6ag Sept Q"
1977 -78 11.5 7.6 4.4 5.1 9.5
1978 -79 13.5 7.7 7.9 9.2 12.1
1979 -80 13.6 11.5 10.9 12,8 16.6
1980 11.481 7.2 7.4 7.8 10.4
1981 -82 13.4 9.8 9.8 4.6* 13.8
1982 -83 15.9 8.5 8.5 9.8 16.0
1983 -84 14.9 9.6 8.1 10.5 13.0
1984 -85 9.6 9.2 7.6 12.5
1985 -86 11.1 11.2 11.4 12.7
1986 -87
Notes
Source
1
9X Dim lu
16.5 16.7 13.4
13.8 14.3** 17.6
15.9 18.5 17.9
12.3 13.4 13.1
15.6 16.5 20.4
17.0 16.4 22.8
16.1 15.5 20.7
14.7 14.9 * **
14.7 16.1 * **
Detailed information not available
1977 FY Pipeline Requirements
1978 FY High Fishing /Labor Force Dropped
1979 FY Labor Force Dropped
1982 FY Labor Force Drop /Employment Drop
State Department of Labor
97-
14.1
16.0
17.0
12.8
17.8
21.1
22.8
du
15.6
16.5
12.9
13.9
16.8
19.9
21.2
Apr dU Luue
10.4 18.0 7,0*
16.1 16.0 14,3
11.2 9.8 8.0
13.1 12.1 13.8
12.1 12.5 11.1
18.8 19.8 12.4
17.6 15.4 9.6
CITY OF SEWARD
PRINCIPAL TAXPAYERS
Tune 30, 1987
UNAUDITED)
Percentage
l
Includes real and personal property
Source: Kenai Peninsula Borough Tax Assessment
98-
1986 of Total
Assessed
Valuation(
1)
Assessed
laxpayer Valuation
Keydril Company Oil. Services 11,250,000 7.698
Suneel Alaska Corp. Coal Export 11,016,528 7.53
Icicle Seafoods Fish Processing 3,455,900 2.36
Seward Fisheries Fish Processing 3,045,283 2.08
Gateway Ventures, Inc. Real Estate 2,973,700 2.03
Afognak Logging Construction 2,593,593 1.77
Seaway Express Barge Service 2,238,400 1.53
General Telephone
Co. of Alaska Communications 1,327,433 0.91
New Seward Hotel Hotel 1,208,252 0.83
Conifer 402 Real Estate 1.139.920 0..78
40,249,009 27.51%
l
Includes real and personal property
Source: Kenai Peninsula Borough Tax Assessment
98-
June 1, 1912
Home Rule
Council - Manager
22
26
216
2,279
1
2
37
5
1
7
2
580
49
730
2,200,000
N/A
78
3
1
19,750
60
2
1,301
CITY OF SEWARD
MISCELLANEOUS STATISTICS
June 30, 1987
UNAUDITED)
Date of Incorporation
Class
Form of Government
Area, Square Miles
Miles of Street
Number of Street Lights
Population (January, 1987)
Fire Protection
Number of Stations
Number of Firemen and Officers
exclusive of volunteers)
Number of Volunteers
Fire Rating (ISO)
Police Protection
Number of Stations
Number of Policemen and Officers
Education
Attendance Centers
Number of Students
Number of Teachers
Municipal Water Department
Number of Consumers
Average Daily Consumption, Gallons
Miles of Water Main
Building Permits Issued
Recreation and Culture
Number of Parks
Number of Libraries
Number of Volumes
Employees
Classified Service
Exempt
Qualified Voters
1
99-
June 1, 1912
Home Rule
Council - Manager
22
26
216
2,279
1
2
37
5
1
7
2
580
49
730
2,200,000
N/A
78
3
1
19,750
60
2
1,301