HomeMy WebLinkAbout1998CAFRI CITY OF SEWARD
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
OF THE
CITY OF SEWARD, ALASKA
For the Fiscal Year Ended
June 30,19981
1
Lowell R. Satin
Mayor
W. Scott Janke
City Manager
Prepared by the
DEPARTMENT OF FINANCE
Rick L. Gifford, CGFM
Director of Finance and Administrative Services
Kristin M. Erchinger, CGFM
Controller
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INTRODUCTORY SECTION
Table of Contents
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
List of Principal Officials
Seward Citizens - Organizational Chart
CITY OF SEWARD
Comprehensive Annual Financial Report
Table of Contents
PART I - INTRODUCTORY SECTION
Table of Contents
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
List of Principal Officials
Seward Citizens - Organizational Chart
PART II - FINANCIAL SECTION
Independent Auditor's ReportPep°
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental
Fund Types
Statement of Revenues, Expenditures
and Changes in Fund Balance - Budget and
Actual - General Fund
Combined Statement of Revenues, Expenses and Changes
in Retained Earnings - All Proprietary Fund Types
Combined Statement of Cash Flows - All Proprietary
Fund Types
Notes to General Purpose Financial Statements
Additional Information
1 -2
A -1
Combining, Individual Fund, and Account Group
B -1
Statements and Schedules:
General Fund:
D -1
Balance Sheet
Statement of Revenues, Expenditures and
Changes in Fund Balance
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Page
I -VIII
IX -XXIII
XX.iV
XXV
XXVI
Exhibit Page
F -1 39
F -2 40
F -3 41-47
1 -2
A -1 4 -5
B -1 6
C -1 7
D -1 9
E -1 10 -11
13 -37
F -1 39
F -2 40
F -3 41-47
CITY OF SEWARD
Comprehensive Annual Financial Report
Table of Contents, continued
FINANCIAL SECTION, continued
Exhibit LaLe
Additional Information, continued
Combining, Individual Fund, and Account Group
Statements and Schedules, continued:
Special Revenue Funds:
Combining Balance Sheet G -1 52
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances G -2 53
Parks and Recreation:
Combining Balance Sheet G -3 54
Combining Statement of Revenues, Expenditures and
and Changes in Fund Balances G-4 55
1PublicSafety:
Combining Balance Sheet G -5 56
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances G -6 57
Other General Government:
Combining Balance Sheet G -7 58
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances G-8 59
Pass- Through:
Balance Sheet G -9 60
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances G -10 61
Debt Service Fund:
Balance Sheet
Statement of Revenues, Expenditures and Changes in
H -1 63
Fund Balance H-2 64
CITY OF SEWA"
Comprehensive Annual Financial Report
Table of Contents, continued
FINANCIAL SECTION, continued
Exhibit LaLe
Additional Information, continued
Combining, Individual Fund, and Account Group
Statements and Schedules, continued:
Capital Project Funds:
Combining Balance Sheet I -1 68
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances 1 -2 69
Parks and Recreation:
Combining Balance Sheet 1 -3 70
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances I4 71
Public Safety:
Combining Balance Sheet I -5 72
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 1-6 73
Other General Government:
Combining Balance Sheet 1 -7 74
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 1 -8 75
Library:
Balance Sheet 1 -9 76
Statement of Revenues, Expenditures
and Changes in Fund Balance 1 -10 77
Enterprise Funds:
Combining Balance Sheet J -1 80-81
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings J -2 83
Combining Statement of Cash Flows J -3 84 -85
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CITY OF SEWARD
Comprehensive Annual Financial Report
Table of Contents, continued
FINANCIAL SECTION, continued
Exhibit Pale
Additional Information, continued.
Combining, Individual Fund, and Account Group
Statements and Schedules, continued:
Enterprise Funds, continued:
Electric:
Balance Sheet J-4 86 -87
Statement of Revenues, Expenses
and Changes in Retained Earnings J -5 88
Statement of Cash Flows J-6 89
Schedule of Operating Expenses J-7 90
Schedule of Electric Capital Projects J -8 91
Water and Sewer:
Balance Sheet J-9 92
Statement of Revenues, Expenses
and Changes in Retained Earnings J -10 93
Statement of Cash Flows J -11 94
Schedule of Operating Expenses J -12 95
Combining Schedule of Water and Sewer Capital Projects J -13 96
Harbor:
Balance Sheet J -14 97
Statement of Revenues, Expenses
and Changes in Retained Earnings J -15 98
Statement of Cash Flows J-16 99
Combining Schedule of Harbor Capital Projects J -17 100
Parking Revenue:
Balance Sheet J -18 101
Statement of Revenues, Expenses and
Changes in Retained Earnings (Deficit) 1-19 102
Statement of Cash Flows J -20 103
Motor Pool Internal Service Fund:
Balance Sheet K -1 105
Statement of Revenues, Expenses and
Changes in Retained Earnings K -2 106
Statement of Cash Flows K -3 107
1 CITY OF SEWARD
Comprehensive Annual Financial Report
STATISTICAL SECTION
Table of Contents, continued
General Fund Revenues by Source 118
Table IA General Government Tax Revenues by Sources 119
FINANCIAL SECTION, continued
General Fund Expenditures by Function 120
Table 3
Exhibit LaLe
Additional Information, continued
Assessed and Estimated Actual Value of Taxable Property 122
Combining, Individual Fund, and Account Group
Property Tax Rates - Direct and Overlapping Governments 123
Statements and Schedules, continued:
Special Property Assessment Collections 124
Teen Council Agency Fund:
Ratio of Net General Obligation Bonded Debt to Assessed Value
Balance Sheet L -1 109
Statement of Changes in Assets and
Legal Debt Margin 126
Liabilities L -2 1 l0
General Fixed Assets Account Group:
Ratio of Annual Debt Service Expenditures for General
Schedule of General Fixed Assets by Sources M -1 111
Schedule of Changes in General Fixed Assets M -2 112
Schedule of General Fixed Assets
Property Value, Construction and Bank Deposits 130
by Function and Activity M -3 113
Schedule of Changes in General Fixed Assets
by Function and Activity M4 114
General Long -Term Debt Account Group —
Schedule of General Long -Term Debt N -1 115
PART III - STATISTICAL SECTION
Table 1 General Fund Revenues by Source 118
Table IA General Government Tax Revenues by Sources 119
Table 2 General Fund Expenditures by Function 120
Table 3 Property Tax Levies and Collections 121
Table 4 Assessed and Estimated Actual Value of Taxable Property 122
Table 5 Property Tax Rates - Direct and Overlapping Governments 123
Table 6 Special Property Assessment Collections 124
Table 7 Ratio of Net General Obligation Bonded Debt to Assessed Value
and Net General Obligation Bonded Debt Per Capita 125
Table 8 Legal Debt Margin 126
Table 8A Computation of Direct and Overlapping Bonded Debt 127
Table 9 Ratio of Annual Debt Service Expenditures for General
Obligation Debt to Total General Fund Expenditures 128
Table 10 Revenue Bond Coverage 129
Table 11 Property Value, Construction and Bank Deposits 130
Table 12 Principal Taxpayers 131
Table 13 Miscellaneous Statistics 132 -133
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August 28, 1998
To the Honorable Mayor, members of the City Council and the citizens of Seward:
The Comprehensive Annual Financial Report of the City of Seward, Alaska, for the fiscal year ended June 30,
1998, is herewith submitted as mandated by local ordinances and state statutes. These ordinances and
statutes require that the City of Seward issue annually a report on its financial position and activity, and that
this report be audited by an independent firm of certified public accountants. Responsibility for both the
accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests
with management. We believe the data as presented is accurate in all material respects. It is presented in a
manner designed to fairly set forth the financial position and results of operations of the City as measured by
the financial activity of the various funds and account groups. All disclosures necessary to enable the reader
to gain an understanding of the City's financial activities have been included.
The Comprehensive Annual Financial Report is presented in three sections: introductory, financial and
statistical. The introductory section, which is unaudited, includes this letter of transmittal, a list of the City's
principal officials, and an organizational chart. The financial section includes: the general purpose financial
statements, which present aggregate data by fund type and account group, and includes the notes to the
financial statements; the combining and individual fund and account group financial statements and schedules;
and the independent auditor's report on these financial statements and schedules. The statistical section,
which is also unaudited, includes statistical tables which present financial, social, and demographic information,
generally on a multi -year basis.
With respect to federal and state financial assistance programs, the City must comply with the single audit
requirements of the Single Audit Act Amendments of 1996, Audits of States, Local Governments, and Non -
Profit Organizations, State of Alaska Office of Management and Budget, and the State of Alaska Audit Guide
and Compliance Supplement for State Single Audits. For year ended June 30, 1998, the City was not subject
to a federal single audit, since activities related to the expenditure of federal funds were below the required
threshold for a.singie audit. However, information related to the State single audit, including the schedule of
State financial assistance, is available in a separately issued report.
D2 Repon,
For financial reporting purposes, the reporting entity included in our comprehensive annual financial report
includes all funds and account groups of the City. The General Fund is supported by taxes and general
government revenues which are not restricted to a particular use. The City provides a comprehensive range
of municipal services, including police, fire, culture and leisure services through the library and parks and
recreation departments, planning and zoning, economic development, public improvements, and general and
administrative services. The City also provides utility services, including electric, water and sewer. Utility
services are accounted for in enterprise funds and are supported through user charges established by tariff.
The City also maintains enterprise funds to account for the operations of all harbor- and port- related activities
and public parking services provided by the City.
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The City was incorporated on June 1, 1912, and became afirst -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 established by the Charter is the Council- Manager plan. The Council exercisesgovernment
legislative power and determines all matters of policy for the City. The Council is composed of a Mayor and
six council members who are elected at -large on a non - partisan basis. Council members and the Mayor each
serve a term of two years.
The City Manager is the administrative head of the City government, is appointed by the Council, and is
responsible to the Council for the proper handling of all City affairs. The City Clerk is also appointed by the
Council. 'The Clerk's primary, responsibilities involve the safekeeping of public records and the administration
of 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 fo #lowing positions are made by the City Manager
with approval of the Council: City Engineer, Chief of Police, Director of Finance and Administrative Services
and the Fire Chief.
The community is located on the eastern side of the Kenai Peninsula in Southcentral Alaska, 125 highway miles
south of Anchorage. Year -round access is available by road, rail, water and commuter air service. The City
has an area of 22 square miles and a population of 2,999.
Seward was established in 1903 as the terminus of the (then) Alaska Central Railway. Its location was chosen
for its attributes as a year - round, ice -free Port. The world class harbor characteristics of Resurrection Bay
established the City economically and still drive the economic base of the community. Seward is the only city
in Alaska with an ice -free, deep -draft harbor with road and rail service to interior Alaska. Seward's unique port
and transportation system have positioned it to be a key connection between the growing demand for Alaska's
resources in the Pacific Rim countries, and the source of those resources in interior Alaska.
inSeward's citizens, and its physical assets, have created a much more diversified economy than exists other
coastal communities in Alaska. Seward has directed its efforts toward economic diversification and stability.
The City has created and encouraged private investment and year -round jobs in Seward. Economic expansion
is focused on six primary activities: tourism, fishing, bulk transportation, ship repair services, education and
government.
Seasonal activity in the summer has generated increased economic activity in tourism, sport, and commercial
fishing. Tourism is a significant, expanding industry in Seward. With the recent completion of the Alaska
SeaLife Center (the Center), the trend of increased tourism is expected to continue. The Center is a world -
class marine research facility dedicated to understanding and maintaining the integrity of the marine ecosystem
of Alaska through research, rehabilitation and public education. The Center is estimated to draw 250,000
visitors in its first year of operation. industry studies estimate that nearly 400,000 non- resident visitors travel
to Seward each summer. In addition, over 300,000 Alaskans reside within 3 hours' highway travel time, and
an estimated 158,000 visit each year. Seward is known as the best one -day trip from Anchorage due, in part,
to attractions such as Exit Glacier, Kenai Fjords National Park, world -class sport fishing, the Alaska SeaLife
Center, and the scenic splendor of the surrounding area. The Seward Highway between Anchorage and
Seward is listed as one of the ten most scenic highways in the world. Numerous tourism - related businesses
serve the thousands wishing to enjoy these natural attractions.
In an effort to address the increased impact of tourism on the community, the administration is proposing an
increase in the local sales tax rate. In fiscal year 1998, voters overturned a proposed 1 % seasonal sales tax.
An advisory vote will be held in October 1998 to determine the level of community support for a year -round
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1 % sales tax increase which would raise the local sales tax rate from 3% to 4 %. The tax increase will enable
the City to establish a capital replacement fund for the purpose of addressing capital infrastructure repair and
replacement, in anticipation of future growth.
Another major contributor to Seward's thriving local economy is Spring Creek Correctional Center, the State's
first maximum security prison which opened in 1988. The prison provides year -round employment to enhance
the seasonal economy of the area. The City continues its lobbying efforts to expand the prison facility to
relieve overcrowding irx the State's prison system. Another- example 'of the City's efforts to increase jobs,
private investment and economic activity, is seen in the Seward Marine Industrial Center (SMIC). This area
contains over eighty acres of prime marine industrial land developed for long -term lease to marine - related
businesses. The City has invested over forty million dollars of State grant and local monies to create this prime
industrial development area. The SMIC is the only dedicated marine industrial center in Southcentral Alaska.
In addition to the private sector businesses operating at SMIC, the City maintains boat and ship lift facilities
to facilitate emergency and routine maintenance and repairs to large vessels operating in Alaskan waters.
Maior InItiallyes For the Year
The City's staff, following specific directives of the City Council, have been involved in a variety of projects
during the year. These projects reflect the government's commitment to promoting viable economic
development, stable employment, and a healthy quality of life for its citizens.
1 The City dissolved the Seward General Hospital Enterprise Fund in 1996 and entered into a lease and operating
agreement with Providence Alaska Medical Center to operate the hospital. In May 1996, the voters of Seward
approved the sale of $7.5 million in bonds to construct a new medical center. Construction of the facility was
completed in January 1998, and the new facility opened its doors in February 1998. Providence Seward
Medical Center (PSMC) provides primary care and emergency medical services, as well as laboratory, radiology,
physical therapy and home health care services. The primary focus of PSMC is on delivering outpatient care
and services, but the new medical center is capable of accommodating short-term patients awaiting transfer
or stabilization.
The City finalized the sale of the former sawmill property located on the East side of Resurrection Bay,
following a solicitation of requests for proposals. Most of the property was sold to Kodiak Lumber, Ltd., with
the tidelands being leased . The facility is currently being used as a storage facility for boats, recreational
vehicles, etc., and the docking facility is being retrofitted to serve as a moorage facility for cargo and
passenger ships.
Chugach Alaska Corporation is in the process of exercising their option to purchase the Historic Railroad Depot
from the City for approximately $253,000. They have made considerable renovations and improvements to
the facility, which they have renamed the Chugach Heritage and Cultural Center. The terms of the sale require
that Chugach comply with the criteria necessary to maintain the facility on the National Register of Historic
Places. Chugach agrees to preserve the building and to represent the historical integrity and significance of
the building as a railroad depot.
The City entered into a management and operations contract with the State of Alaska Department of Fish and
Game, to facilitate the operation and management of the state mariculture facility in Seward. This contract
was subsequently assigned by the City to Qutekcak Native Tribe (QNT). The facility serves as a hatchery for
the production of oyster spat, which is made available to Alaska oyster farmers.
The Council and administration have pursued a number of major programs and improvements to meet citizen's
demands for services and to safeguard the environment, in conformity with applicable federal and state
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standards. "these programs include: completion of the Alaska SeaLife Center and hospital construction
projects; capital repairs and improvements to Hoban Park, located adjacent to the Alaska SeaLife Center to
replace fencing, monuments and trees, and install a sidewalk; renovations to the police dispatch area to replace
electrical wiring and radios to comply with requirements of the Americans with Disabilities Act; continued
repairs to roads, bridge approaches, culverts and levees damaged during the 1995 flood disaster; construction
of a new community softball field in partnership with the Seward Little League; repairs and upgrades to various
sidewalks and intersections; improved technological resources at the library, including automation of the
catalogue and circulation systems, and installation of new publicraccess computers and printers; design and
engineering related to renovating the Seward Historic Railroad Depot; upgrading and platting the Seward
Community Cemetery; and acquisition of land, installation of picnic tables, and other improvements to Two
Lakes Park,
The Harbor Enterprise Fund continues to make functional and visual improvements to the harbor basin. In an
effort to improve the availability of services to the boardwalk lease sites located adjacent to the Small Boat
Harbor, new water and sewer lines were installed, and the harbor boardwalk is being rebuilt. Harbor personnel
are beginning a harbor plaza beautification project designed to improve the aesthetic appearance of the plaza
area. This project will involve planting trees, shrubs and flowers, improving lighting, upgrading public telephone
access, and adding benches, picnic tables, trash containers, bicycle racks, a water fountain, and interpretive
signs. The Harbor Enterprise is in the final phases of completing the design of a new electrical system and
addressing the more pressing life /safety issues related to the electrical system. Three electrical distribution
centers are being replaced with marine -grade transformers, breaker boxes and cables, and individual power
stations are being repaired and replaced as funding allows. fl
The Electric Utility Enterprise has completed negotiations of a long -term wholesale contract for the purchase '
of power from Chugach Electric Association. This contract is expected to decrease the City's overall costs
of purchasing power, with the City agreeing to periodically switch to City generated power for up to 72 hours
per year. The Electric Utility also intends to initiate a rate study in the coming year, to determine appropriate
rates for the Utility. '
In an effort to address deteriorating infrastructure throughout the City, the City Council has established capital
replacement funds for the Harbor, Electric and Water /Sewer Enterprise Funds. While the amount being set '
aside in these funds does not fully fund depreciation on enterprise assets, it represents a positive step toward
forward - funding major repairs and replacement of deteriorating infrastructure.
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The City Council and administration are preparing to implement a community -wide Strategic Planning process
in early fiscal year 1999, for the purpose of developing goals to guide future decision- making and allocate '
resources. Town meetings will provide the forum for soliciting public input and prioritizing the needs of the
community. The Council and administration will then meet to develop long -term goals, five -year objectives,
and annualized management action plans, designed to move the community forward to the year 2000 and '
beyond.
The Harbor Enterprise continues to work with the Army Corps of Engineers to determine the feasibility of ,
eastward expansion of the harbor basin. The existing harbor is overcrowded and has more than 400 vessels
on a waiting list for slip space. The eastward expansion project is expected to accommodate approximately
472 additional vessels and alleviate overcrowded conditions.
In cooperation with the State of Alaska, the Harbor Enterprise is currently developing a plan for the City to '
assume ownership of the Small Boat Harbor. The proposal requires the State to provide funding necessary to
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bring the Harbor float system up to an acceptable condition before the City assumes ownership. After transfer
of ownership, the City will be relieved of its present obligations under the Maintenance and Operating
Agreement with the State of Alaska, and will operate the Harbor Enterprise in a manner similar to a private
business enterprise.
With more than 100 cruise ships calling on the Port of Seward in 1998, and increased demand for dock
capacity to accommodate freight and marine traffic, the City has worked vigorously to support the expansion
of existing dock facilities in Seward. In cooperation with the Alpska Railroad Corporation, the City's federal
lobbyists are working to secure funding for the expansion of the Alaska Railroad Dock. At this time, the federal
government has approved approximately $5.3 million in funding for expansion of the existing dock, with an
additional $4.5 million in funding expected from the Federal Highway Administration.
The Alaska SeaLife Center was completed through cooperative agreements with the City of Seward, Seward
Association for the Advancement of Marine Science, University of Alaska, Alaska Department of Fish and Game
and the Exxon Valdez Oil Spill Trustee Council. Its principal emphasis is the development of research and
rehabilitation facilities to provide education, research and monitoring relating to injured marine mammals, sea
birds and fishes indigenous to Alaskan waters. The total cost of the project is $50.5 million. The project is
t primarily financed by a $12.5 million grant from the Exxon Combined Settlement monies authorized by the
Alaska legislature in 1993, and $24.956 million awarded by the Exxon Valdez Oil Spill Trustee Council in 1994.
An additional $13 million was provided from the proceeds of the sale of nonrecourse revenue bonds sold by
the City in May, 1996. The facility is owned by the City of Seward and operated by the Seward Association
for the Advancement of Marine Science. The facility is expected to draw approximately 250,000 visitors in
its first year of operations.
Community leaders continue to work with representatives from the State of Alaska and private enterprise to
support the coal terminal facility and expansion of the State's only long -term prison facility. The City's federal
lobbyists continue to seek funding for a multi - agency facility which will accommodate the needs of the National
Park Service and U.S. Forest Service. They are also seeking funding for stellar sea lion research at the Alaska
SeaLife Center and bullet- resistant vests and vehicle equipment for the police department.
D@nartment Focus
Each year the City highlights the efforts and accomplishments of a selected department. This year the library
department has been chosen for this purpose. The mission of the library is to serve, inform, empower and
enrich each person in the community by providing free and equal access to a wide variety of ideas and
information, and by supporting an informed citizenry, lifelong learning, and a love of reading. The library
acquires, organizes and provides books and relevant materials in a variety of formats, insures effective access
to information resources, and reaches out to all users of the Library with caring, expert assistance.
The library became a department of the City in 1988, and provides a variety of services to its patrons, including
copier services, sending and receiving faxes, notary public, voter registration, Internet access, a summer
reading program, and a weekly children's story hour. The library's collection includes numerous Japanese
books donated by the City's sister city, Obihiro, Japan. In addition, the Qutekcak Native Tribe provides a grant
to the library for the purchase of books, videos, audio -books and other materials related to the native peoples
and their culture. The library also maintains a large Alaska collection.
The library employs three full -time and two part-time staff, and operates on a budget of approximately
235,000. Over the past two years, the library has undergone a series of capital improvements, and continues
to expand its services to meet the changing needs of its patrons. The basement of the library has been
remodeled into a meeting room, which is large enough to accommodate the summer visitors viewing the
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Earthquake Movie. The east wing of the library has been renovated into a Children's Library, designed to meet '
the needs of children and accompanying parents. This project involved replacing an existing wall with a large
glass wall and door to enhance visual supervision of the children from the main library area. Automatic sliding
doors were recently installed, as was a security system designed to deter the theft of library materials. The '
library is currently administering a technology grant which will facilitate automation of the catalog and
circulation systems, purchase of new computers, printers and scanners, and provide Internet access to library
patrons. In the coming year, additional renovations will include paving the rear parking lot of the library. '
Financial InfolMA
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 are recognized when
measurable and available to finance current expenditures; expenditures are recognized when goods and
services are received and liabilities are incurred. The City's proprietary 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 cost using the first -in, first -out method and are charged as expenses when used.
The City administration is responsible for establishing and maintaining an internal control structure designed '
to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate
accounting data are compiled to allow for the preparation of financial statements in conformity with generally
accepted accounting principles. The internal control structure is designed to provide reasonable, but not '
absolute, assurance that these objectives are met. The concept of reasonable 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. '
As a recipient of federal and state financial assistance, the City is responsible for ensuring that an adequate
internal control structure is in place to maintain and document compliance with applicable laws and regulations '
related to these programs. This internal control structure is subject to periodic evaluation by management.
As part of the single audit performed by the City's independent auditors, tests are made to determine the
adequacy of the internal control structure, including that portion related to federal financial assistance programs '
and state awards, as well as to determine that the City has complied with applicable laws and regulations.
The results of the City's single audit for the fiscal year ended June 30, 1998, provided no instances of material
weaknesses in the internal control structure or violations of applicable laws and regulations. '
Formal budgetary integration is employed as a' management control device during the year for the General Fund
and certain Special Revenue Funds. The Capital Project Funds are budgeted on a project - length basis and
formal budgetary control is achieved as such. The objective of these controls is to ensure compliance with the '
annual appropriated budget approved by the City Council. The General Fund is the only fund which is legally
required to have budget appropriations. Resources are allocated to and accounted for in individual funds, based
on the purposes for which those funds were created. The City Council may, by resolution, transfer '
unencumbered balances between line items within a department or between departments or between funds,
and amend the original budget. The City Manager may transfer amounts between line items within a
department and between departments within a fund. The level of budgetary control (i.e., the level at which '
expenditures cannot legally exceed the appropriated amount) is at the fund level.
Capital projects and grant activities are budgeted on a project - length basis. Activities of the General Fund, '
which is required to have a budget, certain Special Revenue Funds and the Enterprise Funds are included in
the annual operating budget, with appropriations lapsing at year end. The City maintains an encumbrance
accounting system as one technique of ensuring budgetary control.
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As demonstrated by the statements and schedules included in the financial section of this report, the City of
Seward continues to meet its responsibility for sound financial reporting and management.
Revenues from general governmental functions (which includes General, Special Revenue, Debt Service and
Capital Project Funds) totaled $13,655,200 in fiscal year 1998, a decrease of $11,441,214 (45.6 %) from
fiscal year 1997. The amount of revenue from major sources and the increase or decrease from 1997. is shown
in the following tabulations:
Dollar Percent
Increase Increase
Percent {Decrease} )Decrease)
g@yenue Sourges Amount of Total from 1997 #rom1997
Taxes $ 3,293,763 24.1 % $220,850 7.2 %
Property assessments 0 0.0 {1,897} 1100.01
Licenses and permits 115,106 0.8 (85,858) (42.7)
Intergovernmental revenue 7,838,245 57.4 111.622,547) 159.7?
Charges for services 1,540,141 11.3 (122,713) 17.4)
Fines and bails 14,495 0.1 2,112 17.1
Interest 464,279 3.4 (110,609) (19.2)
Miscellaneous revenue 389.171 2.9 279,445 254.6
S 13.655.200 1000% $ (11.
t
The following graph identifies the major sources of general government revenue:
GENERAL GOVERNMENT REVENUES
General, Special Revenue and Capital Project Funds - $13,955,200
Inlerpov7 Revenue 57.4%
Interest 3,4%
AN Other 3.8%
Charges for Servkas 11.3
Tex•s 24.1 %
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In FY1998, overall tax revenues, which represent approximately 24% of all general government revenues,
increased $220,850, with most tax categories experiencing increases.
The Kenai Peninsula Borough bills and collects all property and sales taxes on behalf of the City. In FY1998,
general property tax revenues {which includes real and personal property tax) produced $518,788, compared
to $479,062 in the prior year. Real property taxes increased 7.6%, from $321,319 to $345,794, while
personal property taxes increased 9.7 %, from $157,743 to $172,994. Property taxes attach as an enforceable
lien on property as of January 1, with taxes being levied on July 1, and payable in two installments, on August
15 and November 15. Property'tax revenues for FY1998 are based on 1997 property assessments.
Sales tax revenues'increased approximately 5 %, from $1,734,019 in FY1997, to $1,820,230 in FY1998.
However, proceeds from one cent of the City's three cent sales tax, or approximately $600,000 in FY1998,
was transferred to the Hospital Debt Service Fund to satisfy debt service obligations on $7.5 million in hospital
bonds. Payments in lieu of tax increased by $70,480, to $799,978. Based on an operating agreement
between the City and the Seward Association for the Advancement of Marine Science, the Alaska SeaLife
Center began contributing PILT in May 1998, amounting to approximately $38,014 through June 30. Since
PILT payments from the Enterprise Funds are based on operating revenues, the Electric Enterprise Fund
contributed $31,295 more than the prior year - 4502,019 total, while the Harbor Enterprise Fund contributed
11,319 less than FY1997 - 4140,927 total. The 4% hotellmotel room tax brought in $148,211, representing
an increase of 15.6% from FY1997. The trend in increased room tax is expected to continue in the immediate
future due to construction of a new hotel in the downtown area, as well as the addition of a new Inn and
numerous bed and breakfast establishments. There are no remaining property assessments in the General
Fund, with the exception of a deferred assessment related to the Jesse Lee Home properties.
The following chart shows the distribution of the various categories of tax revenues:
TAX REVENUES
General Fund - $3,393,763
Sales 55,1 x
i'
Lodging 4.5%
Property 15.91E
PILT 24.5%
it
Other governmental -type revenues include license and permit fees, which declined approximately $86,000
42.7%) from the prior year, bringing in $115,106. While DMV fees increased a slight $3,572, building permits '
fell 74%, from $122,035 to $32,270, primarily due to completion of the Alaska SeaLife Center project which
had attracted higher permit fees in FY1997.
MT
I
Intergovernmental revenues, which represent more than 67% of all general government revenues, showed a
59.7% decline of $41,622,547, to $7,838,245. This decline is due primarily to completion of the Alaska
SeaLife Center project, which contributed significant State grant revenues in the prior year. Of the total
reduction in intergovern mental revenues, $11,531,502 results from declines in capital projects, and
approximately $96,000 from declines in funding for special revenue projects. While intergovernmental
revenues in the General Fund appear to have increased $5,343 from the prior year, the increase is due only
to a new method of accounting for external revenue sharing for medical facilities, in the General Fund. These
revenues were accounted for in Special Revenue Funds in the previous year. When normalizing these revenues
for the sake of comparison across fiscal years, intergovernmental revenues in the. General Fund actuallydecreased $118,047. The General Fund saw a $34 %.reduction in liquor tax (from $21,000 to $13,950), a
21 % reduction in raw fish tax (from $301,551 to $238,860), an 8.2% reduction in Safe Communities fundingformerlyMunicipalAssistance -- (from $140,323 to $12$,766) and minimal other reductions in miscellaneous
grants and amusement tax.
t
Revenues from charges for services, which represents approximately 11% of all general government revenues,
experienced a net decline of $122,713 or 7.4% from the previous year. While parks and recreation revenues
were up $9,644 from the prior year, most other categories declined. The biggest decline was in project
management fees, which declined 57% or $129,663, due to the reduced revenues associated with
administering capital projects such as the Alaska SeaLife Center. In addition, administrative fees charged to
the Enterprise Funds for finance, management and other services, declined $10,713 to $870,285. Overall,
street and shop department work orders declined $21,599, from $79,026 to $57,427.
Fines and bails experienced a 17% increase, from $12,383 to $14,495, while miscellaneous revenues
increased 105.7%, from $111,620 to $229,586. The increase in miscellaneous revenue is primarily attributed
to the recovery of $52,602 in legal fees, an increase of $7,205 from the prior year in the collection of doubtful
accounts, a $7,469 increase in revenues related to the city's refuse contract, and an increase of $34,890 in
gravel sales from the prior year. The City also received $159,585 from the sale of surplus land parcels located
within the city, and parcels which the City had purchased during construction of the electric transmission line.
Expenditures for general government purposes totaled $17,925,792 in FY1998, representing a decrease of32 %, or $8,491,055 from FY1997. Increases and decreases in expenditure levels for major functions of theCityfromtheprecedingyearareasfollows:
WIT
Dollar Percent
Increase Increase
Percent Decrease) Decrease)
Amount of Jotal From FYI 997 From 1 997
General Government S 2,006,486 11.2 % 29,740 1.5 % Public Safety 1,891,838 10.6 62,744) 13.2) Public Works 831,248 4.6 40,862 5.2ParksandRecreation630,079 3.5 6,691) 11.1) Library
Public Service
234,033 1.3 8,865) 3.7)
Capital Outlay
34,414
12,019,188
0.2
67.0
67,584)
8,473,463)
66.3)
41.4) Debt Service 278,506 1.6 57.69fl 26,13
17.925.792 10 I {8.491.05 3- 32
WIT
The distribution of general government expenditures by function is represented in the following graph;
GENERAL GOVERNMENT EXPENDITURES
General, Special Revenue and Capital Project Funds - $17,929,792
Parks 3 Roc 3.5%
Library 1.3% Public works 4.6%
Public Svc 0.2%
Public Selsty 10.6%
Gen'l Gov't 11.2%
Debt Svc 1.6%
capital Outlay 67.076
The overall decline of $8,491,055 in general government expenditures, which includes the General, Special
Revenue, Debt Service and Capital Project Funds, is due primarily to a $8,473,463 overall reduction in
expenditures for capital projects. While FY1997 expenditures for the Alaska SeaLife Center project exceeded
18 million, FY1998 expenditures declined to $6.58 million. Construction expenditures for the new hospital
facility were $2.1 million in FY1997, and $5.1 million in FY1998.
Total expenditures in the General Fund declined by $41,595 from FY1997, not including transfers to other
funds. Expenditures for the General Fund were higher in FY1998 for public works and the library, but lower
for general government, public safety, parks and recreation, and debt service. Public works expenditures were
up $40,862 from the prior year, but came in nearly $60,000 under budget. The increase in cost is due to higher
snow removal fees and increased vehicle maintenance costs in the city shop. The increase in library costs is
attributed to additional staff hours in the summer season.
General government expenditures declined $11,897, despite an increase of $153,831 in contributions to civic
organizations. The increase in contributions is due primarily to sales taxes paid to Providence Seward Medical
Center for health services during the construction of the new medical center. The bulk of general government
savings is due to approximately $26,000 in salary savings in the city clerk department, $35,000 salary savings
in the finance department, and nearly $100,000 savings in general services. This $100,000 savings results
from one -time FY1997 expenditures for marketing (590,000) and GPS survey costs ($16,000), which were not
repeated in FY1998.
XVIII
I
1
Public safety expenditures declined $42,363, due primarily to employee benefit savings resulting from a one-
time reduction in retirement contributions to the Alaska Public Employees Retirement System. Parks and
recreation costs declined $23,388 from the prior year, and still came in $28,568 under budget. Approximately
19,000 of the savings from prior year is due to employee benefit savings, with an additional $25,960 reduction
in purchased services as the result of one -time FYI 997 costs associated with building a new skete park facility.
General Fund debt service costs declined from $220,816 to $210,868. Overall, General Fund expenditures for
the year totaled $5,722,707, coming in under budget by $355,538.
enera . un - Eund BaIaW&
The General Fund year -end fund balance totaled $2,932,042, a decrease of $783,331 from the prior year's fund
balance of $3,715,373. During the year, the City Council and administration determined that it was necessary
to address the Harbor Enterprise Fund's mounting debt to the Central Treasury. The increasing debt was
incurring more than $65,000 per year in interest, making it difficult for the Harbor Enterprise to reverse its
financial difficulties. The City Council agreed that the General Fund would write -off nearly $1.3 million in Harbor
Enterprise Fund debt. In all, the General Fund transferred $1,716,626 to other funds.
As of June 30, 1998, General Fund revenues exceeded budgeted projections by $412,064 and totaled
6,478,552, while actual expenditures were 355,538 less than budgeted, at $5,722,707. This resulted in an
overall excess of revenues over expenditures of $755,845. An analysis of the change in General Fund fund
balance follows:
Fund balance at beginning of the year 3,715,373
Excess of revenues over expenditures 755,845
Net operating transfers (to)/from other funds:
Special Revenue Funds:
Police Fund
DARE Program
191500)
3,683)
Bicycle Safety 781)
Prismatic Surgical Lighting 2,511
Capital Project Funds:
Capital Acquisition 17,485)
Hospital Construction 1143,592)
City Playgrounds 42,295)
1995 Flood Disaster 16,453
Library Grants 4,407)
Hoben Park
Enterprise Funds:
16,246)
Electric 25,000
Harbor 1,170,224)
Debt Service: 184.927)
Net other financing sources (uses) 11.5,39.176)
Fund balance at end of year 2.932.042
XIX
At June 30, 1998, the City's outstanding principal on bonded debt totals $18,040,000 (see pages 25 and 26
for itemized detail). This amount includes $14,865,000 in general obligation bonds (backed by the full faith and
credit of the City), and $3,175,000 in revenue bonds. Net general obligation bonds represents only bonds
which are to be repaid through levied taxes, and therefore excludes those general obligation bonds carried on
the books of enterprise funds. The ratio of net general obligation bonded debt to assessed property valuation,
and the amount of net general obligation bonded debt per capita, are both useful indicators to management,
citizens, and investors, of the City's debt position.
Ratio of Net
Bonded Debt to Net
Assessed Value Bonded
100% of Debt Per
Btl7oWol Market Valuel
Net General Obligation Bonded Debt $9,467,115 8.20%
Capita
3,157
At June 30, 1998, the City has $14.865 million in outstanding general obligation bonds. Of this total,
5,397,885 are recorded in the enterprise funds which benefit from the proceeds of said bonds, and include
1980 electric bonds, 1993 refunding of 1986 electric bonds, and the 1987 Seward Marine Industrial Center
bonds. The remaining $9,467,115 in general obligation bonds are carried in the General Long -Term Debt
account group.
In addition, the City issued $3,225,000 in electric revenue bonds in 1995 to complete construction of the
electric transmission line from Mile 3 to Mile 24. The first principal payment for these bonds was paid in June
1998, with annual installments payable through June 1, 2015. The bond issue requires that electric rates be
maintained at a level which ensures electric revenues equal to at least 1.3 times the amount required each
calendar year to pay the principal and interest on all outstanding electric revenue bonds. Annual income
available for revenue bond debt service is defined as: operating revenues less operating expenses before
depreciation and payments in lieu of taxes, plus interest income. For fiscal year 1998, annual income available
for revenue bond debt service was $2,363,706 and the debt service requirement was $234,435, resulting inaratioof10.08, well above the 1.3 required level.
The State of Alaska Department of Environmental Conservation loaned the City $924,000 for restoration of the
Lowell Point Sewage Lagoon and $26,231 for engineering studies to connect portions of the Dairy Hill area to
the sewer system. The notes payable to the State of Alaska are represented in the Water and Sewer Enterprise
Fund and the balances due at June 30, 1998 are $808,649 and $22,295, 'respectively. Annual installments
are made until November, 2013 for the Lowell Point Sewage Lagoon loan and July, 2014 for the Dairy Hill loan.
in 1996 the City dissolved the Seward General Hospital Enterprise Fund which resulted in the termination of all
hospital employees. The City assumed the related pension obligation for hospital employees vested in the State
of Alaska Public Employees Retirement System at June 30, 1996. At June 30, 1998, this pension liability isestimatedat $1,082,570, and is carried in the General Long -Term Debt account group. The City intends to
retire this obligation and the general obligation bonds issued in August 1996 to construct the new medical
facility, with proceeds from a one percent sales tax (currently one cent of the City's three cent sales tax).
The City maintains several lease purchase agreements for the financing of a sand truck, motor grader, pumper
truck, rescue truck, and a 250 -ton travel lift. The lease agreements qualify as capital leases for accounting
purposes (titles transfer at the end of the lease terms) and are therefore recorded as capital leases. Machinery
and equipment lease payments are capitalized in the funds for which the equipment was purchased, with856,546 in the enterprise funds and $701,447 in the Motor Pool Internal Service Fund.
I
I
Cash Management
The investment and collateralization of City funds is governed by Section 5.15 of the Seward City Code. The
ordinance clearly identifies safety as the primary concern in the selection and management of the City's
investments.
The City combines all its cash into a Central Treasury for the purpose of maximizing investment earnings.
Eamings on these investments are allocated monthly to the funds supplying the resources for investment.
Total City cash and investments at June 30, 1998 were as follows:
Cash on hand $ 1,838
Deposits 111,005
Investments 9.125.306
Total City cash and investments9.2 3
Deposits (cash carried on the City's books} are minimized each day, as management sweeps available cash into
an overnight bank instrument investing in repurchase agreements (represented in the investment figure above).
Cash temporarily idle during the year was invested in short-term time deposits, repurchase agreements and
t
government agency securities. The amount of interest earned by governmental and proprietary funds in the
fiscal year ended June 30, 1998, was $711,495, approximately $28,000 less than the prior year.
Enterprise Operations
Enterprise funds are used to account for operations that are financed and operated in a manner similar to private
business enterprises, where the costs of providing services to the general public on a continuing basis are
financed or recovered primarily through user charges. The City's enterprise funds provide electric, water, sewer,
harbor, and public parking services.
Enterprise fund fixed assets which are acquired through contributions in aid of construction from granting
agencies and customers, are depreciated over the useful life of the related assets. The related depreciation
expense is included in the computation 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 monthly cycle billings. As a result of this cycle billing method, the utilities do not
accrue revenue at the and of any fiscal period for services sold but not yet billed. Instead, revenues are
recognized in the period billed.
Interfund charges by the General Fund to the enterprise funds includes administrative expenses and payments
in lieu of tax. Administrative expenses are charged based on an annual cost allocation plan, and payments in
lieu of tax are calculated based on 8% of enterprise fund operating revenue.
In FY 1998, operating revenues in the proprietary funds (including enterprise funds and internal service funds)
increased $505,091 from the prior year, with all funds showing increases except the Harbor Enterprise Fund.
Operating revenues increased $430,321 in the Electric Enterprise Fund, $93,327 in the Water and Sewer
Enterprise Fund, $37,734 in the Parking Revenue Enterprise Fund, and $25,776 in the Motor Pool internal
Service Fund. Operating revenues in the Harbor Enterprise Fund declined $82,067.
UN
Operating expenses in the proprietary funds showed a net increase of $556,259, with Electric Enterprise Fund ,
expenses increasing $491,678, Water and Sewer Enterprise Fund expenses declining $60,185, Harbor
Enterprise Fund expenses increasing 892,973, and Parking Revenue Enterprise Fund expenses increasing
831,793.
Risk Manaoement '
The City is a member of the Alaska Municipal League Joint Insurance Association (JIA), a government insurance
pool established by the Alaska Municipal League. The JIA provides the City coverage for property, including
building and contents, automobiles, mobile equipment and data. processing equipment; casualty, including
general liability, public officials and employees liability, law enforcement professional liability, auto liability and
employee benefit liability; workers' compensation, including employers liability; commercial blanket bond; and
time element. The City also maintains special marine insurance coverages and boiler and, machinery insurance
coverages with insurance companies placed through JIA. The JIA provides loss control services and conducts
periodic inspections to ensure safe operations. The City has utilized an established safety committee to review
and recommend safety policies and procedures for all departments. The City Council designates a portion of
the General Fund fund balance to meet potential losses related to the JIA- basic core coverages and the law
enforcement liability pool (LELP), At June 30, 1998, the amount of fund balance designated for insurance
reserves is $179,301, an increase of 894,737 from the prior year. The LELP was established by the JIA as a
separate insurance pool for law enforcement professional liability, including jail liability.
1nd21> end911t.,Audit
The City Charter and Section 29.35.120 of the Alaska State Statutes both require an annual independent audit
of the accounts and financial transactions of the City, by a certified public accountant. The accounting firm
of Mikunda, Cottrell & Co., LLP was selected by the City Council, to perform the annual audit for fiscal year
1998. The auditor's report on the general purpose financial statements is included in the financial section of
this report. The combining, individual fund and account group financial statements and schedules are presented
for the purpose of additional analysis. The auditor's report related specifically to the single audit are contained
in a separate document.
The Government Finance Officers Association of the United States and Canada iGFOA) awarded a Certificate
1ofAchievementforExcellenceinFinancialReportingtotheCityofSewardforitsComprehensiveAnnual
Financial Report (CAFR) for the fiscal year ended June 30, 1997. The Certificate of Achievement is a
prestigious national award recognizing conformance with the highest standards for preparation of state and local
government financial reports. '
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and
efficiently organized comprehensive annual financial report, whose contents conform to program standards. '
The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Seward has received a '
Certificate of Achievement for the last four consecutive years (fiscal years ended 1994 - 1997). We believe our
current report continues to conform to the Certificate of Achievement program requirements, and we are
submitting it to the GFOA to determine its eligibility for another certificate.
XXII
tAcknowledgments
Preparation of the Comprehensive Annual Financial Report could not have been accomplished without the
efficient and dedicated services of the entire staff of the finance department. We would like to express our
appreciation to all members of the finance department who assisted and contributed to the preparation of this
report, with a special thanks to Kristin Erchinger, Controller. Due credit also should be given to the mayor and
the members of council for their interest and support in planning and conducting the operations of the City of
Seward in a responsible and progressive manner.
Respectfully submitted,
d
W. Scott Ja ke Rick L. Gifford
City Manager Director of Finance and Administrative Services
1
1
1
tXXIII
Certificate of
Achievement
for- Excellence
in Financial
Reporting
Presented to
City of Seward,
Alaska
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 1997
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting,
AF D 2worerU
rm, President
SEALS
o rue
Executive Director
XXIV
Crff OF SEW"D
LIST OF PRINCIPAL OFFICIALS
Lowell R. Satin Mayor
Jerry King Vice Mayor
Edgar Blatchford Council Member
Stu Clark Council Member
Marie Gage Council Member
Nathan Orr Council Member
Pat Callahan Council Member
W. Scott Janke City Manager
Tylan C. Schrock Assistant City Manager
Rick L. Gifford Director of Finance and
Administrative Services
Dave Calvert City Engineer and
Utility Manager
James Beckham Harbormaster
Tom Walker Chief of Police
David Squires Fire Chief
Karin J. Sturdy Parks & Recreation Director
Doris Welch Acting Library Director
Kerry T. Martin Community Development
Director
Patrick Reilly City Clerk
Eric E. Wohlforth City Attorney
Wohlforth, Argetsinger, Johnson
Brecht
XXv
CITY OF SEWARD
Organizational Chart
Citizens
Mayor &
Council
Boards & City Manager City Clerk City
Commissions Attorney
Planning &
Zoning
Port &
Commerc
Historic
Preservation
i
Police Finance Engineering & Library
Utilities
1
1
Harbor Fire unity Parks & EDeve pmen t Recreation
XXVI
t
PART II
FINANCIAL SECTION
Independent Auditor's Report
General Purpose Financial Statements
Combining, Individual Fund and
Account Group Financial Statements and Schedules
MIKUNDA, COTTRELL & CO.
A Professional Corporation
t
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
3601 "C" Street, Suite 600 • Anchorage, Alaska 99503
907) 278 -8878, Fax (907) 278 -5779
www.mcc- cpa.com
Independent Auditor's Repo
Honorable Mayor and City Council
City of Seward
We have audited the accompanying general purpose financial statements of City of Seward,
Alaska, as of and for the year ended June 30, 1998. These general purpose financial statements
are the responsibility of the City's management. Our responsibility is to express an opinion on
these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of City of Seward, Alaska, as of June 30, 1998, and the
t results of its operations and the cash flows of its proprietary fund types for the year then ended in
conformity with generally accepted accounting principles.
in accordance with Government Auditing Standards, we have also issued our report dated August
26, 1998 on our consideration of City of Seward, Alaska's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts
and grants.
LMcGLADUY NETWORK
An Incepenoonlly Owned Member
ID Worktwide Seances Through RSM In[e" atw mi
Offices: Anchorage, Bethel & Kenai
Honorable Mayor and City Council ICityofSeward
Our audit was performed for the purpose of forming an opinion on the general purpose financial ,
statements of City of Seward, Alaska taken as a whole. The combining, individual fund, and
account group statements and schedules listed in the table of contents are presented for purposes '
of additional analysis and are not a required part of the general purpose financial statements of
City of Seward, Alaska. Such information has been subjected to the auditing procedures applied
in our audit of the general purpose financial statements and, in our opinion, is fairly stated, in all
material respects, in relation to the general purpose financial statements taken as a whole. 1
Q Vp
August 26, 1998
2
1
GENERAL PURPOSE FINANCIAL STATEMENTS
The General Purpose Financial Statements include the basic financial statements
and notes to the financial statements which are essential to the fair presentation
of financial position and results of operations and the cash flows of the
proprietary fund types.
f
GENERAL PURPOSE FINANCIAL STATEMENTS - OVERVIEW
These financial statements provide a summary overview of the financial position of all funds and
account groups and the operating results of all funds. The following statements are included in
this section:
Combined Balance Sheet - All Fund Types and Account Groups -- reports assets,
other debits, liabilities, fund equity and other credits for all funds and account
tgroups.
Combined Statement of Revenues, Expenditures and Changes in Fund Balances -
All Governmental Fund Types -- reports results of operations of the General
Fund, Special Revenue Funds, Debt Service Fund and Capital Project Funds.
t Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and
Actual -- General Fund -- compares the actual results of operations with the budget
for the General Fund.
Combined Statement of Revenues, Expenses and Changes in Retained Earnings -
All Proprietary Fund Types -- reports results of operations of the Enterprise
Funds and Internal Service Fund.
Combined Statement of Cash Flows - All Proprietary Fund Types - reports the
I sources and changes in cash balances of the Enterprise Funds and Internal Service
Fund.
INotes to General Purpose Financial Statements.
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u
CITY OF SEWARD
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental Fund Types
Year Ended June 30, 1998
with Comparative Totals for 1997
Exhih4t R.I.
1
Totals
Special Debt Capital Memorandum Only)
General RYSnit Servic PrAjt;et 142$ I
Revenues.
Taxes S 3,293,763 3,293,763 3,072,913
Licenses and permits 115,106 115,106 200,964
Intergovernmental 1,105,212 87,929 6,645,104 7,838,245 19,460,792
Charges for services 1,540,141 1,540,141 1,662,854
Fines and bails 14,495 14,495 12,383
Land sales
159,585 159,585
Investment income 261,974 2,759 199,546 464,279 574,888
Miscellaneous 147,861 4,073 77,652 229,586 111,620
Total revenues 6,478,552 92,002 2,759 7,081,887 13.655,200 25,096,414
Expenditures:
Current:
General government 1,960,687 45,799 2,006,486 1,976,746
Public safety 1,876,870 14,968 1,891,838 1,954,582
Public works 831,248 831,248 790,386
Parks and recreation 609,001 21,078 630,079 636,770
Library 234,033 234,033 242,898
Public service 34,414 34,414 101,998
Capital outlay 12,019,188 12,019,188 20,492,651
Debt service 210.868 67,638 278,506 220,816
Total expenditures 5,722,707 1 16,259 67,638 12,019,188 17,925,792 26,416,847
Excess of revenues
over (under) expenditures 755,845 24,257) 04,879) A4,937,301 4,270,592) 1,3{ 20,433)
Other financing sources (uses):
Operating transfers from other funds 177,450 13,964 184,927 222,025 598,366 567,450
Operating transfers to other funds 1,716,626) 2,511) 24,453) 1,743,590) 240,014)
Proceeds from issuance of bonds
7,500,000
Net other financing sources (uses) 1.539,176) 11,453 184,927 197,572 1,145,224} 7,827,436
Excess of revenues and other
financing sources over (under)
expenditures and other uses 783,331) 12,804) 120,048 4,739,729) 5,415,816) 6,507,003
Fund balances at beginning of year 3,715,373 44,956 122,284 6,058,421 9,941,034 3,429,176
Residual equity transfers from fundsother
Residual equity transfers to other funds
7,003
148)
Fund balances at end of vear S 2,932,042 32,152 242,332 1,318,692 4,525 218 9,94!,034
See accompanying notes to general purpose financial statements. 16
I
CITY OF SEWARD
Statement of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual - General Fund
Year Ended June 30, 1998
With Comparative Totals for 1997
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and bails
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Library
Debt service
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses):
Operating transfers from other funds
Operating transfers to other funds
Net other financing sources (uses)
Excess of revenues and other financing
sources over (under) expenditures and
other uses
Fund balance at beginning of year
Residual equity transfers from other funds
Fund balance at end of year
2,116,015
1998
155,328 1,972,584
1,981,362 1,876,870
Variance
1,919,233
Rildget Actual
Favorable
Unfavorable]
1412
Aclual
3,134,211 3,293,763 159,552 3,072,913
118,500 115,106 3,394) 200,964
1,073,510 1,105,212 31,702 1,099,869
1,479,967 1,540,141 60,174 1,662,854
13,000 14,495 1,495 12,383
207,000 261,974 54,974 280,363
40,300 147,861 107,561 51,950
6,066,488 6.478,552 412,064 6,381,296
2,116,015 1,960,687 155,328 1,972,584
1,981,362 1,876,870 104,492 1,919,233
897,247 831,248 65,999 790,386
637,569 609,001 28,568 632,389
235,184 234,033 1,151 228,894
210,868 210,868 220,816-
6,078,245 5,722,707 355,538 5,764,302
11,757) 755,845 767,602 616,994
148,042 177,450 29,408 232,350
1,704,661 1,716,626 11,965) 156,051
1,556,619) 1,539,176 17,443 76,299
S (1,568,376) (783,331) 785,045
See accompanying notes to general purpose financial statements.
7
u
3,715,373
2.932,042
693,293
3,015,077
7,003
3,71 5,373
I
Ll
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a
1
Fxhihit D- i
CITY OF SEWARD
Combined Statement of Revenues, Expenses
and Changes in Retained Earnings -
All Proprietary Fund Types
Year Ended June 30, 1998
With Comparative Totals for 1997
Totals
Internal Memorandum Onl )
F.utcze St 122$ 1291
Operating revenues S 9,596,352 162,011 9;758,363 9,253.272'
Operating expenses 7,016,530 7,016,530 6,460,271
Earnings from operations before depreciation 2,579,822 162,011 2,741,833 2,793,001
Depreciation 2,800,087 113,186 2,913,273 2.900,266
1
Earnings (loss) from operations 220,265) 48,825 171,440) 107,265)
Nonoperating revenues (expenses):
Gain (loss) on disposal of property 638,828 638,825 42?69)
Investment income 231,909 15,307 247,216 164,942
Interest expense 685.083) 24,305) 709,388) 771,174)
Other revenues 948 948 89,168
Other expenses 4,837) 4,837) 50,866)
Net nonoperating revenues (expenses) 181,765 8,998 172,767 6( 10,199}
Earnings (loss) before operating transfers 38,500) 39,827 1,327 717,464)
Operating transfers:
From other funds 1,295,710 1,295,710
To other funds 273,586 273,586 3( 27.435}
Net operating transfers 1.022,124 1,022,124 327,436)
Net earnings (loss) 983,624 39,827 1,023,451 1,044,900)
Amortization of contributed capital 2,262.104 3,243 2,265,347 2.244,590
Increase in retained earnings 3,245,728 43,070 3,288,798 1,199,690
Retained earnings at beginning of year 7.602,572 86,762 7,689,334 6,494.499
Residual equity transfers to other funds 4,855)
Retained earnings at end of year 5 10,848.300 129,832 10,978,132 7.689,334
See accompanying notes to general purpose financial statements.
9
CITY OF SEWARD
Combined Statement of Cash Flows -
Ail Proprietary Fund Types
Year Ended June 30, 1998
With Comparative Totals for 1997
Cash flows from operating activities:
Earnings (loss) from operations $
Adjustments to reconcile earnings (loss) from operations
to net cash !lows from operating activities:
Depreciation
Other nonopemting revenues (expenses)
Increase (decrease) in allowance for doubtful receivables
Increase) decrease in assets:
Receivables
Assessments receivable
Prepaid expenses
Inventory
Increase (decrease) in liabilities:
Accounts payable
Customer deposits
Accrued annual leave
Other accrued liabilities
Due to other funds
Deferred revenue
Retirement incentive program payable
Net cash flows from operating activities
Cash flows from noncapnal financing activities:
Operating transfers from other funds
Operating transfers to other funds
Residual equity transfers to other funds
Decrease in advances to other funds
Decrease in advances from other funds
Interest on central treasury borrowings
Receipts on loan to Alaska Railroad Corporation
Net cash flows from noncapital financing activities
10
220,265)
Totals
Internal Memorandum only)
Service 124,$ iQ91
48,825 (171,440) (107,265)
2,800,087 113,186 2,913,273 2,900,266
4,762) 4,762) 37,212
27,725 27,725 52,543)
100,828) 100,828) 163,007
3,374 3,374 2,160
11,537) 2,242 (9,295) 2,242)
14,716 14,716 26,320)
126,269 6,282
60,935
774) -
10,437) -
1,742,371) _
10,433 -
36,951
989,516 170,535
132,551 100,411)
60,935 45,165)
774) 12,215)
10,437) 23,222)
1,742,371) 306,679
10,433 92,692)
36,951
69,059)
1, l K051 2,947,249
1,295,710 1,295,710
273,586) 273,586) 317,571)
18,521 1 8,521
4,855)
17,402
18,521) 18,521) 17,402)
69,059) 69,059) 90,863)
33,690
953,065 953,065 379,599
r
I
i
CITY OF SEWA"
Combined Statement of Cash Flows -
All Proprietary Fund Types, continued
Cash flows from capital and related financing activities:
Principal payments on long -term debt
Interest payments on long -term debt
Acquisition of property, plant and equipment
Operating transfers to other funds
Proceeds from sale of property
Contributed capital
Deferred revenue
Penalties and interest on special assessments
Net cash flows from capital
and related financing activities
Cash flows from investing activities -
investment income received
Net increase in cash and investments
Cash and investments at beginning of year
Cash and investments at end of year
860,512 102.289 962,801 1,851.632
231,909
Reconciliation of cash and investments to balance sheet:
Cash and investments:
1,313,978
Current assets
Memorandum Only)
Restricted assets
S== 1.42$
860,512 102.289 962,801 1,851.632
231,909 15,307
Totals
164.942
1,313,978
Internal Memorandum Only)
880,960
S== 1.42$ IM
5 (780,369) 77,984) 858,353) 782,718)
574,473) 24,305) 598,778) 639,194)
457,987) 457,987) 879.582)
9,865)
725,000 725.000
225,444 226,444 462,080
3,443)
973 873 1,090
860,512 102.289 962,801 1,851.632
231,909 15,307 247,216 164.942
1,313,978 83,553 1,397,531 880,960
3,357,309 218,793 3,576,102 2,695,142
S 4,671.287 302,346 4,973,633 3,576,102
S 4,364,082 302,346
307,205 -
S 4,671,287 302,346
1
1 See accompanying notes to general purpose financial statements.
11
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t
i
i
NOTES TO GENERAL PURPOSE
FINANCuL STATEMENTS
The notes to the General Purpose Financial Statements represent
a summary -of signifcant account policies and other notes to the
financial statements necessary for adequate disclosure.
CITY OF SEWARD
Notes to General Purpose Financial Statements
June 30, 1998
1) Summary of Significant Accounting Policies
Organization and Services Provided
The City of Seward, Alaska (the. City) was incorporated June 1, 1912 as a home -rule city
and operates under a Council - Manager form of government.
The City provides the full range of municipal-services as provided for by Alaska Statute.
This includes police and fire protection, electric, water and wastewater services, library,
parks and recreation, public improvements, planning and zoning, port and harbor, and
general administrative services.
Reporting Entity
In prior years, the City's general purpose financial statements included the Seward General
Hospital as a blended component unit. However, effective July 1, 1996, all Hospital
operations were transferred to Providence Alaska Medical Center, a private health care
provider.
For the year ended June 30, 1998, there are no component units for which the City of
Seward is financially accountable, nor do any special financial relationships exist
between the City and any other entity.
The accounting policies of the City conform to generally accepted accounting principles as
applicable to governments. The following is a summary of the more significant policies:
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 purpose 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
as follows:
Governmental Fund Tomes
The General Fund is used to account for all financial resources except those required to be
accounted for in another fund. The General Fund is the City's operating fund.
Special Revenue Funds are used to account for the proceeds of specific revenue sources
other than major capital projects) that are restricted to expenditures for specified
purposes.
13
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
ST= of Si ' resat Accounting Policies, continued
Governmental Fund Types, continued
The Debt Service Fund is used to account for the accumulation of resources for, and the
payment of, principal and interest relating to the bonds issued to construct the new
hospital and the PER.S liability resulting from the transfer of the operations to
Providence Alaska Medical Center.
Capital Project Funds are used to account • for financial resources to be used for the
acquisition or construction of major capital facilities and public improvements (other
than those financed by proprietary funds).
Proprietary Fund Types
Enterprise Funds are used to account for operations (a) that are financed and operated in a
manner similar to private business enterprises where the intent of the governing body is
that the cost (expenses, including depreciation) of providing goods or services to the
general public on a continuing basis be financed or recovered primarily through user
charges; or (b) where the governing body has decided that periodic determination of
revenues earned, expenses incurred, and /or net income is appropriate for capital
maintenance, public policy, management control, accountability, or other purposes.
The Internal Service Fund is used to account for the financing of goods or services
provided by one department or agency to other departments or agencies of the City on a
cost - reimbursement basis. The City has one internal service fund which accounts for
the acquisition of vehicles and mobile equipment which are then leased to the various
departments of the City.
Fiduciary Fund Types
Agency Funds are used to account for assets held by the City in a trustee capacity or as an
agent for individuals, private organizations, other governments, and /or other funds.
Agency Funds are custodial in nature (assets equal liabilities) and do not involve
measurement of results of operations.
14
I CTTY OF SEWMW
Notes to General Purpose Financial Statements, continued
Summa of S' ' icant Accounfing Policies, continued
tFixed Assets and Long -Term Liabilities
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 (revenues and other financing sources) and decreases (expenditures and other
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 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 historical cost if actual historical
cost is not available. Donated fixed assets are valued at their estimated fair market value
on the date donated.
Long -term liabilities expected to be financed from the governmental funds are accounted
for in the General Long -Term Debt Account Group, not in the governmental funds.
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.
The two account groups are not "funds." They are concerned only with the measurement
of financial position. They are not involved with measurement of results of operations.
All mryrorie funds are accounted for on a cost of services or "capital maintenance" P P
measurement focus. This means that all assets and all liabilities (whether current or
noncurrent) associated with their activity are included on their balance sheets. Their
reported fund equity (net total assets) is segregated into contributed capital and retained
earnings components. Proprietary fund type operating statements present increases
revenues) and decreases (expenses) in net total assets.
16
1
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Summary of Signif cant Accounting Policies, continued
Fixed Assets and Long -Term Liabilities, continued
Portions of the property, plant and equipment of the Enterprise Funds have been
constructed through the use of contributed capital from State and federal agencies.
Depreciation on, all assets has been charged against operations. However, depreciation
applicable to the assets acquired with contributed capital has been included in "Increase
in retained earnings," and is reflected in the fund equity section of the Enterprise Fund
balance sheets as reductions of the "Contributed capital" account.
Depreciation for all plant and equipment in the proprietary funds is computed by use of the
straight -line method over the estimated economic lives of the assets.
Estimated lives of major asset categories are as follows:
Life in years
Buildings 10-50
improvements other than buildings 10-50
Equipment 2 -30
Basis of Account irt
Basis of accounting refers to when revenues and expenditures or expenses are recognized
in the accounts and reported in the financial statements. Basis of accounting relates to
the timing of the measurements made.
Governmental fund types are accounted for on the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recorded when
susceptible to accrual, i.e., both measurable and available. Available means
collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period. The available period for the City is generally fill days
after year end. All primary revenue sources have been treated as susceptible to
accrual. Expenditures are recognized on the accrual basis with the exception of
principal and interest on general long -term debt, which are reported only when due.
Proprietary fund types are accounted for on the accrual basis of accounting. Their
revenues are recognized in the period earned and expenses are recognized in the
period incurred.
Agency Fund assets and liabilities are accounted for using the modified accrual basis of
accounting similar to that utilized by the governmental fund types.
Proprietary Fund Types and GASB Statement No. 20
Governmental Accounting Standards Board (GASB) Statement No. 20 allows proprietary
activities to elect to follow either GASB pronouncements or Financial Accounting
Standards Board (FASB) pronouncements which are not in conflict with GASB and
have been issued after November 30, 1989. The City has elected to follow only
GASB pronouncements subsequent to November 30, 1989.
16
1
1 CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Sununa of S!EAricant Accoptipq Policies, continued
Central Treasury
A central treasury is used to account for the City's cash and investments to maximize
interest income. Investments are stated at fair value. Investment earnings are
1 allocated 'among the funds based on their respective cash balances.
Cash and. Cash Equivalents .
For purposes of the statement of cash flows, the proprietary funds consider all cash and
investments to be cash and cash equivalents. The central treasury, which holds cash and
investments, is used essentially as a cash management pool by each fund.
Inventory
Inventories are valued at cost in governmental funds and at the lower of cost or market in
the proprietary funds. Cost is determined by the first -in, first -out method. The cost is
recorded as an expenditure at the time individual inventory items are consumed.
Grants and Other Intergovernmental Revenues
In applying the measurable and available concepts to grants and intergovernmental
1 revenues, the legal and contractual requirements of the numerous individual programs
are used as guidance. There are, however, essentially two types of these revenues. In
one, monies must be expended on the specific purpose or project before any amounts
will be paid to the City; therefore, revenues are recognized based upon expenditures
recorded. In the other, monies are virtually unrestricted as to purpose of expenditure
and are usually revocable only for failure to comply with prescribed compliance
requirements. These resources are reflected as revenues at the time of receipt or earlier
if the measurable and available criteria are met.
Property Taxes
Property taxes are liens on the assessed value of taxable property as of January 1.
Pursuant to Alaska Statutes, the City establishes the mill rate and tax levy on or before
June 15. The City is located within the Kenai Peninsula Borough which acts as the
City's agent in the billing and collection of property taxes. Tax bills for one -half of the
taxes are mailed prior to July 1 and are payable on August 15; tax bills for the second-
half of the taxes are mailed by October 1 and are payable on November 15. City
property tax revenues are recognized in the fiscal year in which they are collectible and
available (collected within sixty days after year -end) to finance expenditures of the fiscal
year.
At June 30, the delinquent real and personal taxes not currently available are reflected as
deferred revenues of the General Fund.
17
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued '
Summary of Significant Accounting Policies, continued '
Interfund Transactions
During the course of normal operations, the City has numerous transactions between
funds, including expenditures and transfers of resources to provide services, construct '
assets, and service debt. The accompanying financial statements generally reflect such
transactions as operating transfers. Operating subsidies are also recorded as operating
transfers. The classification of amounts recorded as subsidies, advances, or residual '
equity transfers is determined by City management.
Accrued Leave '
Accrued leave (vacation and sick leave) is recorded as an expense in the proprietary fund
types 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 accrued leave recorded as ,
expenditures in the governmental fund types is the amount accrued during the year that
would normally be liquidated with available spendable resources. Only the current
portion of the liability is recorded in the governmental fund types, with the remainder '
reported in the General Long -Term Debt Account Group.
Encumbrances '
Encumbrance accounting, under which purchase orders, contracts and other commitments
for expenditures are recorded in order to reserve that portion of the applicable
appropriation, is employed as an extension of formal budgetary integration in the '
General Fund during the year. However, it is the City's policy to stop issuing purchase
orders in early June. Outstanding purchase orders, if any, at June 30, are cancelled and
new ones are issued in the subsequent year. As a result, there are no outstanding '
encumbrances at June 30, 1998.
Deferred Grant Revenue '
Amounts received from grantor agencies which are restricted as to use and have not been
expended for the intended use are shown as deferred revenue. '
Pension Plans
Substantially all employees of the City participate in the Public Employees' Retirement '
System (PERS) administered by the State of Alaska, with the exception of certain
Electric Fund employees.
Reclassifications '
Certain reclassifications have been made to the 1997 financial statements to make them
comparable with the 1998 presentation. '
18
1
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Summary of Significant Accounting Policies,_ continued
Comparative Data
Comparative total data for the prior year have been presented in the accompanying
financial statements in order to provide an understanding of changes in the City's
financial position and operations.
Tota: Columns on Combined Statements
Total columns on the Combined Statements are presented only -to facilitate financial
analysis. Data in these columns do not present financial position, results of operations,
or cash flows in conformity with generally accepted accounting principles. Neither is
such data comparable to a consolidation. Interfund eliminations have not been made in
the aggregation of this data.
2) Stewardship, Compliance and Accountability
Budgetary Accounting
An operating budget is adopted each fiscal year for the General Fund on the same modified
accrual basis used to reflect actual revenues and expenditures. Appropriations for this
fund lapse at year end to the extent that they have not been expended or encumbered.
Budgetary control is exercised at the department level. The City Manager is authorized
to transfer budget amounts between departments within a fund or between cost centers
within a department's budget classification. The budgeted financial statements
represented in this report reflect the final budget authorization, including amendments
made during the year.
A comparison of the original expenditure and operating transfers out appropriation with the
final amended expenditure and operating transfers out appropriation as presented in the
financial statements follows:
Final
Original Amended
Fund Ap2ro2riations Appropriations
General Fund $ 7,507,529 7,782,906
3) Cash and Investments
The City of Seward utilizes a central treasury that is available for use by all funds. Each
fund's portion of the central treasury is displayed on the balance sheet as "cash and
investments" or included in "due to other funds."
Deposits
At year end, the carrying amount of the City's deposits was $111,005 and the bank
balances totaled $145,580. All of the bank balances were covered by federal depository
insurance or by collateral held by the City's agent in the City's name.
19
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued ,
Cash and Investments, continued '
Investments
Statutes authorize the City to invest in obligations of the U.S. Treasury and U.S. Agencies,
banker's acceptances, repurchase agreements, commercial 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 insured by federal depository insurance or
secured by eligible collateral held by a third -party in the City's name. ,
Investments are carried at fair value and are categorized below to give an indication of the
level of credit risk assumed by the City at year end. '
Category 1
Insured or registered, or securities held by the City or its agent in the City's name. '
Category 2
Uninsured and unregistered, with securities held by the counterparty's trust
department or agent in the City's name. '
Category 3
Uninsured and unregistered, with securities held by the counterparty, or by its trust ,
department or agent, but not in the City's name.
L_
20
1
Category
1 2 3 Total
Overnight repurchase
agreement $ - 4,628,115 - 4,628,115
U.S. government securities 1,000,000 3,005,448 - 4,005,448
Bankers acceptances - 491,743 - 491,743
1,000,000 8,125,306 - 9,125,306
Restricted Cash
The City also maintains electric bond redemption and reserve accounts as required by the
bond covenants. The balance in these accounts at June 30, 1998 totaled $307,205 and is
included in investments.
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20
1
1 CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Cash and Investments, continued
A reconciliation of cash and investments as shown on the combined b rce sheet follows: T
Cash on hand
Carrying amount of deposits
1,838
111,005
Balance at
Carrying amount of investments 9,125,306
9,238,149
Deletions
Cash and investments as shown on the
Land and land rights
combined balance sheet:
Cash and investments 8,930,944
Buildings
Restricted assets - cash and investments 307,205
6,139,715
9,238,149
4) Fixed Assets
A summary of changes in general fixed assets follows:
Balance at Balance at
Ju1v 1, 1997 Additions Deletions June 30, 1998
Land and land rights S 3,622,374 3,622,374
Buildings 8,300,866 43,128 2,204,279 6,139,715
Improvements other than buildings 8,556.362 8,556,362
Equipment 1,689,968 27,803 1,717,771
Fixed assets in service 22,169,570 70,931 2,204,279 20,036,222
Construction in progress 42,669.611 18,811,833 17,718 61,463,726
S 64,839,181 18,882,764 2,221,997 81,499,948
A summary of proprietary fund .type property, plant and equipment at June 30, 1998
follows:
Internal
Enterprise Service
Funds Fund
Land and land rights S 16,011,837
Buildings 4,651,320
Improvements other than buildings 36,778,763
Equipment 41,089,274 1,059,062
Docks and floats 14,863,106
113,394,300 1,059,062
Less accumulated depreciation 36,465,938) 433,296)
76,928,362 625,766
Construction in progress 851,236
Property, plant and equipment, net S 77,779,598 625,766
21
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
5) Interfund Receivables, Payables, and Interfund Advances
Interfund receivable and payable balances at June 30, 1998, are as follows:
Interfund Interfund
Receivables Pa aybles
General Fund $ 122,544
Special Revenue Funds:
Bicycle Safety - 1,543
Interpretive Signs - 781
Capital Project Funds:
Police Dispatch - 780
1995 Flood Disaster - 1,132
Seward Association for Advancement
of Marine Science - 1,123
Harbor Enterprise Fund - 117,185
Totals $ 122,544 122,544
Interfund advances at June 30, 1998, are as follows:
Interfund Interfund
Receivables Payables
Enterprise Funds:
Electric $ 19,712
Harbor - 19,712
Totals $19,712 19,712
22
1
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
6) Operating Transfers
30, 1998 follows: A summary of operating transfers between funds for the year ended June
DARE Program 3,683
From To
781
Other Other
Total Special Revenue Funds 13,964
Funds Funds
Debt Service Fund from General Fund
General Fund:
Special Revenue Funds:
Capital Acquisition 25,485
Police Fund 9,500
Hospital Construction
DARE Program 3,683
City Playground
Bicycle Safety 781
1995 Flood Disaster
Prismatic Surgical Lighting 2,511
Library Grants
Capital Project Funds:
Hoben Park
Capital Acquistion 8,000 25,485
Total Capital Project Funds
Hospital Construction
24,453
143,592
City Playground 42,295
1995 Flood Disaster 16,453
Library Grants 4,407
Hoben Park 6,246
Enterprise Funds:
Electric 25,000
Harbor 125,486 1,295,710
Debt Service 184,927
Total General Fund 177,450 1,716,626
Special Revenue Funds (from/to General Fund):
Police Fund 9,500
DARE Program 3,683
Bicycle Safety
Prismatic Surgical Lighting
781
2,511
Total Special Revenue Funds 13,964 2,511
Debt Service Fund from General Fund 184,927
Capital Project Funds (from/to General Fund):
Capital Acquisition 25,485 8,000
Hospital Construction 143,592
City Playground 42,295
1995 Flood Disaster 16,453
Library Grants 4,407
Hoben Park 6,246
Total Capital Project Funds 222,025 24,453
1
23
0
Reconciling item - operating transfer from '
Harbor Enterprise Fund recorded as
contributed capital in Water and Sewer
Enterprise Fund 123,100
Total operating transfers $ 2,017,176 2,017,176
7) Accrued Leave '
Accrued leave estimated to be paid with current available resources is recorded in the
General Fund. The portion to be paid from future resources of the General Fund '
194,026 at June 30, 1998) is recorded in the General Long -Term Debt Account
Group, The City's policy is to make no distinction between vacation and sick leave
as accrued leave includes both types. '
A summary of the change in the long -term portion of accrued annual leave follows:
Balance at July 1, 1997 $ 185,324 ,
Increase 8,702
Balance at June 30, 1998 $ 194,026 ,
8) Long -Term Debt '
General Obligation Bonds
The City has issued general obligation bonds to provide funds for the acquisition and ,
construction of major capital facilities. General obligation bonds have been issued for
both general government and proprietary activities. These bonds are reported in the
Enterprise Funds if they are expected to be repaid from proprietary revenues. '
L
24
1
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Operating Transfers, continued
From To
Other
Funds
Other
Funds
Enterprise Funds:
Harbor Enterprise Fund to:
General Fund 125,486
Water and Sewer Enterprise Fund 123,100
Harbor Enterprise Fund from General Fund 1,295,710
Electric Enterprise Fund to General Fund 25,000
Total Enterprise Funds 1,295,710 273,586
Reconciling item - operating transfer from '
Harbor Enterprise Fund recorded as
contributed capital in Water and Sewer
Enterprise Fund 123,100
Total operating transfers $ 2,017,176 2,017,176
7) Accrued Leave '
Accrued leave estimated to be paid with current available resources is recorded in the
General Fund. The portion to be paid from future resources of the General Fund '
194,026 at June 30, 1998) is recorded in the General Long -Term Debt Account
Group, The City's policy is to make no distinction between vacation and sick leave
as accrued leave includes both types. '
A summary of the change in the long -term portion of accrued annual leave follows:
Balance at July 1, 1997 $ 185,324 ,
Increase 8,702
Balance at June 30, 1998 $ 194,026 ,
8) Long -Term Debt '
General Obligation Bonds
The City has issued general obligation bonds to provide funds for the acquisition and ,
construction of major capital facilities. General obligation bonds have been issued for
both general government and proprietary activities. These bonds are reported in the
Enterprise Funds if they are expected to be repaid from proprietary revenues. '
L
24
1
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
a -Term Debt, continued
General Obligation Bonds, continued
General obligation bonds are direct obligations and pledge the full faith and credit of the
government. General obligation bonds at June 30, 1998 are as follows:
Interest
Rates Amount
i
14,865,000
25
1,700,000 1980 electric serial
bonds, due in annual installments
of $135,000 to $155,000, through
January 1, 2001 77% $ 435,000
475,000 1990 general government serial
bonds, due in annual installments ofb
65,000 to $75,000 through
December 1, 2000 77.0°% to 7.375% 2210,000
3,990,000 1993 refunding electric
serial bonds, due in annual installments
of $415,000 to $560,000 through
October 1, 2004 44.55% to 5.35% 33,390,000
2,030,000 1993 refunding harbor/
general government serial bonds forg
the 1987 bonds, Series A, due in
annual installments of $150,000 to
240,000 through December 1, 2007 44.55 % to 5.65% 11,910,000
1 551,465,000 1993 refunding general
government serial bonds for the 1990
bonds, Series A, due in annualb
installments of $15,000 to $165,000
through December 1, 2011 44.55% to 5.8% 11,420, 000
7,500,000 1996 hospital serial bonds,
due in annual installments of
175,000 to $825,000 commencing
October 1, 1998 through October 1, 2013 44,5% to 6.75% 77,500,000
14,865,000
25
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Long -Term Debt, continued
Revenue bond principal and interest are payable from resources generated by a particular
government operation such as a public utility. Revenue bonds at June 30, 1998 are
as follows:
Interest
Rates Amount
3,225,000 1995 Electric Fund serial bonds,
due in annual installments of $75,000
to $290,000 through June 1, 2015 4.85 % to 7.35 % $ 3,175,000:
A reconciliation of bonds payable to the amount reported on the Combined Balance Sheet
All Fund Types and Account Groups follows:
Total general obligation bonds $ 14,865,000
Less unamortized loss on 1993 refunding bonds (340,281)
14,524,719
Revenue bonds 3,175,000
17,699,719
Annual general obligation bond and revenue bond debt service requirements to maturity
are as follows:
8,572,885 3,045,739 9,467.115 4,930,261 18,040,000 7,976,000
26
General Long -Term
Year Ending Enterprise Funds Debt Account Group Total
tune 30, Principal Interest Principal Interest Principal Interest
1999 S 748,525 453,487 281,475 510,792 1,030,000 964,279
2000 811,760 412,812 318,240 495,255 1,130,000 908,067
2001 875,877 367,081 354,123 477,424 1,230,000 844,505
2002 754,995 316,137 390,005 458,325 1,145,000 774,462
2003 807,348 273,026 432,652 437,761 1,240,000 710,787
2004 -2015 4,574,380 1,223,196 7,690,620 2,550,704 12,265,000 3,773,900
8,572,885 3,045,739 9,467.115 4,930,261 18,040,000 7,976,000
26
1 CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Long -Term Debt, continued
follows: Notes payable by the Water and Sewer Enterprise Fund at June 30, 1998 are as
Interest
Rates Amount
26,231 note payable to State of Alaska
Department of Environmental Conservation„
due in annual installments of $1,312
through July 15, 2014 4.75 % $ 22,295
901,851 note payable to State of Alaska
Department of Environmental Conservation,
due in annual installments, including interest,
of $70,995 through November 5, 2013 4.31% 808,649
830,944
Annual debt service requirements to maturity on notes payable are as follows:
Year Ending 4.75% Note Payable 4.31 % Note Payable Total
June 30, Principal Interest Principal Interest Principal Interest
1999 $ 1,312 1,059 36,142 34,853 37,454 35,912
2000 1,312 997 37,700 33,295 39,012 34,292
2001 1,312 934 39,324 31,670 40,636 32,604
2002 1,312 872 41,019 29,975 42,331 30,847
2003 1,312 810 42,787 28,207 44,099 29,017
2004 -2015 15,735 4,859 611,677 169,264 627,412 174,123
22,295 9,531 808,649 327,264 830,944 336,795
Obligation Payable to the State of Alaska Public Employees Retirement S stem
The dissolution of the Seward General Hospital Enterprise Fund, a blended component
unit, on June 30, 1996 resulted in the termination of all Hospital employees. The
City assumed the obligation for the additional pension contributions for Hospital
employees vested in the State of Alaska Public Employees Retirement System at June
30, 1996. At June 30, 1998, management estimated this liability at $1,082,570. The
ultimate amount of this obligation and the terms of payment have not been
determined by the State of Alaska Department of Administration, Division of
Retirement and Benefits.
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Long -Term Debt, continued
Defeasance of Debt
In 1993, the City of Seward defeased certain general obligation bonds by placing the
proceeds of new bonds and other available funds in irrevocable trusts to provide for
all futute debt service payments on the old- bonds. Accordingly, trust account assets
and liabilities for defeased bonds are not included in the City's financial statements.
The following general obligation bonds and the balance as of June 30, 1998, are
considered defeased:
General government $ 1,280,000
Changes in Lon -Term Liabilities
During the year ended June 30, 1998, the following changes occurred in long -term
liabilities:
Balance at Balance at
July 1, 1997 Additions Reductions June 30, 1998
General Government
Compensated absences 185,324 8,702 194,026
General obligation bonds 9,562,707 95,592 9,467,115
Retirement incentive program 43,810 43,810
State of Alaska 1,082,570 1,082,570
10,830,601 52,512 95,592 10,787,521
Enterprise Funds
General obligation bonds 6,037,293 639,408 5,397,885
Revenue bonds 3,225,000 50,000 3,175,000
Capital leases 650,000 55,000 595,000
Retirement incentive program 36,951 36,951
Notes payable 866,905 35,961 830,944
10,779,198 36,951 780,369 10,035,780
Internal Service Fund
Capital leases 472,102 77,984 394,118
28
I
1
MY of SEWARD
Notes to General Purpose Financial Statements, continued
Lon &, Term Debt, continued
Revenue Bond R uirements
The City issued $3,225,000 of Electric Fund serial bonds in fiscal year 1995 related to
construction of the LawinglFort Raymond transmission line. The bonds require
establishment of certain cash reserves and maintenance of certain revenue levels.
The issue required a debt service reserve to be established in an amount equal to
maximum annual debt service on the bonds. This amount at June 30 was $307,205
and will remain at that level until the bonds mature in 2015.
The revenue bond issue requires that electric rates be maintained at a level that will make
annual income available for revenue bond debt service equal to at least 1.3 times the
amount required each such calendar year to pay the principal and interest on all
outstanding electric revenue bonds. Annual income available for revenue bond debt
service is equal to operating revenues less operating expenses before depreciation and
t payments in lieu of taxes plus investment income. For fiscal year 1998, annual
income available for revenue bond debt service was $2,363,706, the debt
requirement was $234,435, resulting in a ratio of 10.08. The City is in compliance
1 with the annual income requirement for fiscal year 1998.
9) Capitalized Leases
The City has entered into several lease agreements as lessee for financing the acquisition of
a sand truck, motor grader, pumper truck, rescue vehicle, and a 250 -ton boatlift. These
lease agreements qualify as capital leases for accounting purposes (titles transfer at the
end of the lease terms) and, therefore, have been recorded at the present value of the
future minimum lease payments. The following is a summary of the assets acquired
with the capital leases as of June 30, 1998:
tInternal
Enterprise Service
Funds Fund
Machinery and equipment $ 856,546 701,447
Less accumulated depreciation (228,416) (166,820)
Carrying value $ 628,130 534,627
29
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Ca 'taked Leases, continued
The following is a schedule of future minimum lease payments tinder these capital leases ,
and the present value of the net minimum lease payments at June 30, 1998:
30
Internal
Year Ending Enterprise Sen ,ice
June 30, Funds Fund .
1999 101,275 102 290
2000 96,775 102,290
2001 97,088 94,815
2002 97,182 73,134
2003 97,034 52,952
Thereafter 295,211 22,064
Total minimum lease payments 784,565 447,545
Less interest 189,565 53,427
Present value of future minimum
lease payments 595,000 394,118
Less current portion 60,000 82,490
Long -term portion 535,000 311,628
10) Retirement_ Incentive Program
In August 1997, the City elected to participate in the Public Employees' Retirement
System retirement incentive-program. The program requires the City to pay $80,761
to the State of Alaska, payable in three installments of $26,920 on August 1, 1998,
1999, and 2000.
01) Defined Benefit Pension Plan
Description of Plan
The City participates in the Public Employees' Retirement System (PERS), an agent
multiple employer plan which covers eligible State and local government employees.
The plan was established and is administered by the State of Alaska to provide pension,
postemployment healthcare, death, and disability benefits. Benefit and contribution
provisions are established by State law and may be amended only by the StateLegislature.
30
1 CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Defined Benefit Pension Plan, continued
Description of Plan, continued
The plan is included in a comprehensive annual financial report that includes financial
statements and other required supplemental information. The report is available at
the following address:
Annual Pension Cost
For the year ended June 30, 1998, the City's annual pension cost of $143,685 for PERS
was equal to its required and actual contributions.
31
Department of Administration
Division of Retirement and Benefits
P.O. Box 110203
Juneau, AK 99811 -0203
Funding Polic
For PERS, employees are required to contribute 6.75 % (7.5 % for peace officers and
firefighters) of their annual covered salary. Under the plan, the funding policy
provides for periodic employer contributions at actuarially determined rates that,
expressed as a percentage of annual covered payroll, are sufficient to accumulate
sufficient assets to pay both pension and postemployment healthcare benefits when due.
The City's current contribution rate for PERS follows:
Pension 3.40 %
Postemployment
healthcare 1.31%
Total contribution rate 4.71%
Under the plan, employer contribution rates are level percentages of payroll and are
determined using the projected unit credit actuarial funding method. The plan uses
the level dollar method -to amortize the unfunded liability - over an open, rolling
twenty -five year period. Funding surpluses are amortized over five years.
Annual Pension Cost
For the year ended June 30, 1998, the City's annual pension cost of $143,685 for PERS
was equal to its required and actual contributions.
31
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Defined Benefit Pension Plan, continued
Annual Pension Cost, continued
The required contribution was determined as part of the June 30, 1995 actuarial valuation.
The significant actuarial assumptions used in the valuation of the plan follow:
1. Investment return of 8.25 % per annum, compounded annually, net of
expenses;
2. Projected salary increases of 5.5% for the first five years of employment and
4.5 % per year thereafter;
3. Health cost inflation of 7.5 % in 1997, trending downward by 1 % per year to
5.5 % in 1999 and thereafter;
4. Total inflation, as measured by the Consumer Price Index for urban and clerical
workers for Anchorage, is assumed to increase 4% annually; and
5. Asset valuation - assets are valued at fair value; the asset valuation method
recognizes 20% of the investment gain or loss in each of the current and
preceding four years.
Three -year trend information for PERS follows:
Fiscal Annual Percentage Net
Year Pension of APC Pension
Ending Cost (6TC2 Contributed Obligation
June 30, 1996 $ 210,001 100% $ _
1997 241,250 100%
1998 143,685 100%
32
1
I
i
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Defined Beneft Pension Plan, continued
A schedule of funding progress for PERS follows:
Actuarial - Actuarial Actuarial
Valuation Value of Accrued
Date Assets Liability
June 30, 1995:
Pension
Unfunded
7,884,000
Assets in .
102%
Excess of)
Unfunded Liability as
Assets in • Percentage
Excess of) Funded Covered of Covered
Liabili Ratio Payroll Payroll
Pension 8,077,000 7,884,000 193,000) 102% 3,077,000 6 %)
Postemployment
healthcare 3,035,000 2,963,000 72,000) 102% 3,077,000 2%)
June 30, 1996:
Pension 8,616,000 8,036,000 580,000) 107% 3,100,000 19%)
Postemployment
healthcare 3,320,000 3,097,000 223,000) 107% 3,100,000 7%)
June 30, 1997:
Pension 9,624,000 8,922,000 (702,000) 108% 2,977,000 (24 %)
Postemployment
healthcare 3,587,000 3,325,000 (262,000) 108% 2,977,000 (9 %)
12) International Brotherhood of Electric Workers
Certain Electric Fund employees are members of the International Brotherhood of
Electrical Workers, which maintains its own defined contribution pension plan. The
City's contribution rate for 1998 was $3 per compensable hour for a total
contribution of $30,337.
13) 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 employees, permits
them to defer a portion of their salary until future years. The deferred compensation is
not available to employees until termination, retirement, death, or unforeseeable
emergency .
CITY OF SEWARD I
Notes to General Purpose Financial Statements, continued '
Deferred Compensation Plan, continued
During FY97, the City amended their deferred compensation plan in accordance with '
changes in the Internal Revenue Code. These new provisions require that all assets
and income of the plan be held in trust for the exclusive benefit of participants and '
their beneficiaries.
14) Risk_ Management
The City faces a considerable number of risks' of loss, including (a) damage to and loss of
property and contents, (b) employee torts, (c) professional liability; i.e., errors and
omissions, (d) environmental damage, (3) workers' compensation; i.e., employee
injuries, and (f) medical insurance costs of employees. Commercial policies,
transferring the risk of loss, except for relatively small deductible amounts, are
purchased for employee medical costs.
The City is a member of the Alaska Municipal League Joint Insurance Association (JIA), a
governmental insurance pool established by the Alaska Municipal League. The JIA
provides the City coverage for property, including building and contents, automobiles,
mobile equipment and data processing equipment; casualty, including general liability,
public officials and employees liability, law enforcement professional liability, auto
liability and employee benefit Iiability; workers' compensation, including employers
liability; and commercial blanket bond. The City maintains special marine insurance
coverage and boiler and machinery insurance coverage with insurance companies placed tthroughJIA. The City has no coverage for potential losses from environmental
damages.
The JIA is a public entity risk pool organized to share risks among its members. The
Association's bylaws provide for the assessment of supplemental contributions from
members in the event that losses and expenses for any coverage year exceed the annual
contributions and income earned on such contributions for the year. Such
supplemental contributions shall be based upon each member's annual deposit
contribution in comparison to the aggregate annual deposit contributions of all
members. The Association made no supplemental assessments during the year ended
June 30, 1998.
The JIA provides loss control services and conducts periodic inspections to ensure safe
operations. The City has utilized an established safety committee to review and
recommend safety policies and procedures for all departments. The City Council
designates a portion of the General Fund balance to meet potential losses related to the
JIA basic core coverages and the law enforcement liability pool (LELP). LELP was
established by the JIA as a separate insurance pool for law enforcement professional
liability, including jail liability.
Total Enterprise Funds $ 23,037,488 2,262,104 - 25,299,512
Internal Service Fund $ 1,622 3,243 - 4,865
16) Segment Information for Proprietary Fund Types
Enterprise Funds
The City maintains four enterprise funds, which provide electric, water and sewer,
harbor and public parking services. Segment information for the year ended June 30,
1998 follows:
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Risk ent, continued
There was no significant reduction in the City's major categories of risk insurance
coverage from the prior year, and the amount of settlements for the past three fiscal
years did not materially exceed the City's insurance coverage.
15) Changes in Contributed Capita!
A summary of changes in contributed capital for the year ended June 30, 1998 follows:
Balance at Balance at
uly 1, 1997 Additions Deletions June 30, 1998
Enterprise Funds:
Electric $ 22,616,930 99,641 22,716,571
Water and Sewer 11,577,069 123,100 11,700,169
Harbor 53,432,179 3,703 - 53,435,882
rTotal Enterprise Funds $ 87,626,178 226,444 - 87,852,622
Internal Service Fund $ 402,745 - - 402,745
A summary of changes in accumulated amortization of contributed capital follows:
1 Balance at Balance at
July1, 1997 Additions Deletions June 30, 1998
Enterprise Funds:
Electric $ 5,391,068 780,023 6,171,091
Water and Sewer 5,001,881 372,908 - 5,374,789
Harbor 12,644,539 1,109,173 - 13,753,712
Total Enterprise Funds $ 23,037,488 2,262,104 - 25,299,512
Internal Service Fund $ 1,622 3,243 - 4,865
16) Segment Information for Proprietary Fund Types
Enterprise Funds
The City maintains four enterprise funds, which provide electric, water and sewer,
harbor and public parking services. Segment information for the year ended June 30,
1998 follows:
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Segment Information for Proprietary Fund Types, contWued
Total operating revenues
Depreciation expense
Operating income (loss)
Net operating transfers
from (to) other funds
Net earnings
Current capital
contributions
Property, plant and
equipment additions
Property, plant and
equipment deletions
Working capital
surplus (deficiency)
Total assets
Bonds and other long -term
liabilities
Fund equity
7,000,000 830,944 2,167,885 - 9,998,829 '
21,892,047 9,341,243 42,132,451 35,589 73,401,330
17) Conduit Debt - Revenue Bonds '
On December 10, 1990, the City participated in the issuance of $7,300,000 of Variable
Rate Demand Revenue Bonds, Series 1991 for Alaska Pacific University (APU). The '
proceeds of the issue were used to refinance previous debt held by Alaska PacificUniversity. The bonds do not constitute a general obligation debt or pledge of the foil
faith and credit of the City and, accordingly, the bonds and the related assets are not ,
reflected in the accompanying financial statements. Alaska Pacific University reached
an agreement with Bank of America to extend the final maturity date on the bonds,
which originally matured July 10, 1995. The new maturity date on the bonds is July 10, '
2000 and they carry interest at Bank of America's publicly stated reference rate, fullyfloating.
On May 1, 1996, the City participated in the issuance of $17,500,000 of revenue bonds to '
make a loan to the Seward Association for the Advancement of Marine Science
SAAMS), an Alaska nonprofit corporation, to finance a portion of the costs incurred to ,
construct, install and equip the Alaska Sealife Center Project (the Center). The bonds
are special obligations of the City, payable solely from payments made by SAAMS
under the loan agreement. The bonds do not constitute a general obligation debt or '
pledge of the full faith and credit of the City and, accordingly the bonds are not reflected
in the accompanying financial statements.
36
Total
Water Parking Enterprise
Electric and Sewer Harbor Revenue Funds
6,275,240 1,432,526 1,821,001 67,585 9,596,352
1,111,607 383,872 1,304,608 2.800,087
597,195 162,269 1,003,283) 23,554 220,265)
25,000) 1,047,124 1,022,124
298,599 190,540 470,097 24.388 983,624
99,641 123,100 3,703 226,444
209,276 219,395 29,316 457,987
86,172 86,172
3,201,972 1,150,049 305,081) 35,589 4,082,529
29,253,433 10,341,081 44.749,875 69,984 84,414,373
7,000,000 830,944 2,167,885 - 9,998,829 '
21,892,047 9,341,243 42,132,451 35,589 73,401,330
17) Conduit Debt - Revenue Bonds '
On December 10, 1990, the City participated in the issuance of $7,300,000 of Variable
Rate Demand Revenue Bonds, Series 1991 for Alaska Pacific University (APU). The '
proceeds of the issue were used to refinance previous debt held by Alaska PacificUniversity. The bonds do not constitute a general obligation debt or pledge of the foil
faith and credit of the City and, accordingly, the bonds and the related assets are not ,
reflected in the accompanying financial statements. Alaska Pacific University reached
an agreement with Bank of America to extend the final maturity date on the bonds,
which originally matured July 10, 1995. The new maturity date on the bonds is July 10, '
2000 and they carry interest at Bank of America's publicly stated reference rate, fullyfloating.
On May 1, 1996, the City participated in the issuance of $17,500,000 of revenue bonds to '
make a loan to the Seward Association for the Advancement of Marine Science
SAAMS), an Alaska nonprofit corporation, to finance a portion of the costs incurred to ,
construct, install and equip the Alaska Sealife Center Project (the Center). The bonds
are special obligations of the City, payable solely from payments made by SAAMS
under the loan agreement. The bonds do not constitute a general obligation debt or '
pledge of the full faith and credit of the City and, accordingly the bonds are not reflected
in the accompanying financial statements.
36
r
n
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Conduit Debt - Revenue Bonds, continued
The Center is a marine research facility, rehabilitation center, and public education and
visitor facility located in Seward. The total cost of the Project is approximately
55,000,000. Approximately $37,500,000 of total Project costs will be paid from equity
contributions from grants from the State of Alaska and from Exxon Valdez oil spill
settlement monies. The remaining $17,500,000 of Project costs will be paid from bond
proceeds. The Center and the property on- which it is located are owned by the City,
SAAMS has leased the Center and the property from the City and will operate the
Center in accordance with an Operating Lease between the City and SAAMS.
A schedule of the debt outstanding at June 30, 1998 follows:
APU SAAMS
4,290,799 17,393,381
18) Spring Creek Correctional Center
In 1985, the City undertook the financing and construction of a 320 -bed, maximum
security correctional facility on behalf of the State of Alaska. The facility was financed
with nonrecourse certificates of lease participation and leased to the state under the terns
of a long -term lease signed in 1985. The facility is currently being operated by the state.
Technically, the City is the owner of the facility, however, under the terms of both the
financing and lease agreements, there is no possibility of the City ever becoming liable
for the debt or being obliged to take actual possession of the facility. Consequently, the
City has not included the value of the facility in its general fixed assets.
19) Commitments and Contin encies
Amounts received or receivable from grantor agencies are subject lo audit and adjustment
by grantor agencies, principally the state and federal government. Any disallowed
claims, including any amount already collected, could become a liability of the
applicable funds.
Various other claims and lawsuits against the city are pending, but are either covered by
insurance or are the type which are normal and reasonable in view of the City's
operations. City management believes the total amount of the liability, if any, which
may arise from such claims and lawsuits beyond that which is covered by insurance
would not have a material effect on the City's financial condition or its ability to carry
on its activities substantially as now conducted.
20) Subsequent Event
The City has reached a tentative settlement regarding a claim filed against the City
subsequent to June 30, 1998. The claim is for overpaid wharfage tariff charges to the
City. The settlement amount is approximately $143,000.
37
COMBINING,
INDIVIDUAL FUND
AND
ACCOUNT GROUP STATEMENTS
AND SCHEDULES
38
L
GENERAL FUND
The General Fund is established to account for the financial operations of
the City of Seward which are not accounted for in any other fund.
Revenues for this fund are recorded by source. Principal sources of
revenue include property taxes, sales taxes, intergovernmental revenue,
and charges for services.
Expenditures are recorded first by function, then by activity and object
of expenditure. General Fund expenditures are incurred for the purpose
of providing basic municipal services such as police and fire protection,
recreation, library, planning and zoning, legal and administrative
services.
1t'H im
S 1-222-7B 1360-647
49,156 59,968
OF SEWARDtCITY
5,288 7,223
7,800
General Fund
43,522
Balance Sheet
June 30, 1998
23,421
591.907
With Comparative Amounts for 1997
569,621
A eerie
Cash and investments
3,732
217,998
Receivables:
241,660 241,660
Taxes:
2( 41,660)
239.926
Personal property
41,719 181,382
Less allowance for doubtful receivables
1.034,585
5,326 1,520
Net personal property
5,500
Motor vehicle
F1oteVmotel room
Real property
Sales
Net taxes
Accounts
Less allowance for doubtful receivables
Net accounts
Property assessmentsILessallowancefor doubtful receivables
Net property assessments
Grants - State
Accrued interest
Total receivables
Prepaids
lnventory
Due from other funds
Liabilities
Liabilities:
and FUnd Balance
Accounts payable
Salaries and wages payable
Accrued annual leave
Accrued liabilities
Funds held in trust
Deferred revenues
Total liabilities
Fund balance:
Reserved for inventories
Unreserved:
Designated;
Working capital
Community Center
Insurance
Subsequent year expenditures
Undesrgnated
Total fund balance
39
1t'H im
S 1-222-7B 1360-647
49,156 59,968
43,968 52.745
5,288 7,223
7,800 3.210
52,402 43,522
11,445 23,421
591.907
49Z.W
569,621
222,420 103,359
4,422) 3,732
217,998 99,627
241,660 241,660
241,660 2( 41,660)
239.926 1 83,955
41,719 181,382
1,091,550 1.034,585
5,326 1,520
4,718 5,500
1 22,544 1.899,237
S 3,451.851 4,3489
328,135 409.589
85,367 68,912
49,402 39,452
7,059 3,676
7,397 10,801
42,449 53.686
519,809 586,116
4,718 5,500
1,500,000 1,500,000
1,501
179,301 84,564
1,184,436
1,248,023 939.372
2,932,042 3,715,373
3,451,851 4,301,489
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures
and Changes in Fund Balance
Year Ended June 30, 1998
With Comparative Totals for 1997
Excess of revenues and other financing
sources over (under) expenditures and other uses (783,331) 693,293
Fund balance at beginning of year 3,715,373 3,015,077
Residual equity transfers from other funds -
7,003
Fund balance at end of year $ 2,932,042 3.715
40
i
1m 1997
Revenues:
3,293,763 3,072,913
Taxes
115,106 200,964
Licenses and permits
1,105,212 1,099,869
Intergovernmental
1, 540,141 1,662,854
Charges for services
14,495 12,383
Fines and bails
261,974 280,363
Investment income
147,861 51,950
Miscellaneous
Total revenues
61478,552 6,381,296
Expenditures:
w
Current:
General government 1,960,687 1,972,584
Public safety
1,876,870 1,919,233
Public works
831,248 790,3$6
Parks and recreation
609,001 632,389
Library
234,033 228,894
Debt service
210,868 220,816
Total expenditures 5,722,707 5,764,302
Excess of revenues over expenditures 755,845 616,994
Other financing sources (uses):
177,450 232,350
Operating transfers from other funds
Operating transfers to other funds 1,7( 16,626) 156,051
Net other financing sources (uses) 1,539,176 76,299
Excess of revenues and other financing
sources over (under) expenditures and other uses (783,331) 693,293
Fund balance at beginning of year 3,715,373 3,015,077
Residual equity transfers from other funds -
7,003
Fund balance at end of year $ 2,932,042 3.715
40
i
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Year Ended June 30, 1998
with Comparative Atnaunts for 1997
Revenues:
Taxes,
Props rty
Saks
Payments in lieu of taxes
Penalty and interest
Hotel motel room
Total taxes
Licenses and permits:
Building permits
Taxi permits
Department of Motor Vehicles commissions
Animal control licenses
Business licenses
Miscellaneous
Total licenses and permits
Intergovernmental:
General revenue sharing
Safe communities
Jail contract
Dispatch contract
Police and fire contracts
Raw fish tax
Liquor tax
Amusement tax
Parks and recreation grant
M iscellaneous grants
Total intcrgovemmental
Charges for services:
341
Administrative
131,904
Rents and leases
Variance
Copying charges
Work orders
Favorable
Recreation
audgGl
Library
I IntayWahlel
Other
Total charges for services
46,468
Fines and bails
Investment income
18,936
Miscellaneous:
728,597
Sale of land, equipment and gravel
Refuse contract
2,000
Other
4,556
Total miscellaneous
1 30,000
Total revenues
a
118,500 115.106 _ (3.344) 200,964
254,992
1998
341
1442
131,904 128,766
Variance
140,323
363,464 363,464
Favorable
363,465
audgGl Actual I IntayWahlel A=W
S 472,320 518,788 46,468 479,062
1,801,294 1,820,230 18,936 1,734,019
728,597 799,978 71,381 729,498
2,000 6,556 4,556 2,146
1 30,000 148,211 18,211 128,188
3,134,211 3,293,763 159,552 3.072.913
1,073,510 1,105,212
50,000 32,270 17,730) 122,035
1,000 " 910 90) 1,070
45,000 57,701 12,701 54,129
1,000 955 45) 995
21,000 22,110 1,110 21,480
500 1,160 660 1
118,500 115.106 _ (3.344) 200,964
254,992 255,333 341 140,002
131,904 128,766 3,138) 140,323
363,464 363,464 363,465
48,500 48,500 48,500
48.000 48,000 48,000
200,000 238,850 38,850 301,551
18,500 13,950 4,550) 21,000"
400 127 273) 399
7,750 8,222 472 7,000
29,629
1,073,510 1,105,212 31,702 1,099.869
945,285 968,461 23,176 880,890
79,702 114,479 34,777 89,015
34,000 38,639 4,639 33,495
66,000 57,427 8,573) 79,026
336,880 339,367 2,487 329,723
5,950 5,706 244) 8,245
12,150 16,062 3,912 242,460
1,479,967 1,540,141 60,174 1,662,854
13,000 14,495 1,495 12,383
207,000 261,974 54,974 280,363
5,000 35,717 30,717 7,071
30,000 39,199 9,199 31,730
5,300 72,945 67,645 13,149
40,300 147,861 107,561 51,950
6,066,488 6,478,552 412.064 6,381.296
CITY OF SEWARD '
General Fund '
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
42
1998 1122
Variance
Favorable
Actual UnfavnrabIr) Actual
Expenditures:
General government:
Mayor and council:
Salaries 18,000 18,450 450) 18,450
Employee benefits 1,254 1,345 91) 1,667
Audit 37,600 37,600 60.000
Legal 131,667 122,068 9,599 88,781
Supplies and maintenance 30,720 22,828 7,892 19,343
Legislative representation 123,000 122,322 678 96,727
General and administrative 41,125 43,275 2,150) 76,181
Capital outlay
7,499
Total mayor and council 383,366 367,888 15,478 368,648
City manager:
Salaries 151,437 142,708 8,729 141,690
Employee benefits 43,343 35,220 8,123 45,196
Purchased services 8,150 3,057 5,093 11,353
Supplies and maintenance 9,500 4,590 4,910 5,695
General and administrative 20,500 45,512 25,012) 28,230
Capital outlay 3,136 3,136)
Total city manager 232,930 234.223 1.293) 232,164
City clerk:
Salaries 89,648 80,227 9,421 96,666
Employee benefits 26,625 25,108 1,517 34,640
Purchased services 2,500 2,469 31 1,934
Supplies and maintenance 500 500 680
General and administrative 14,000 7.866 6,134 8,040
Total city clerk 133,273 115,670 17,603 141,960
Finance:
Salaries 308,095 258,240 49,855 280,449
Employee benefits 109,277 105,691 3,586 115,937
Purchased services 15,600 8,809 6,791 8,445
Supplies and maintenance 53,170 38,417 14,753 42,910
General and administrative 28,099 22,293 5,806 19,682
Capital outlay 7,125 6,787 338 7,369
Total finance 52 440,237 81.129 474,792
42
I
I
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
Expenditures, continued:
General government, continued:
Community development:
Salaries '
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total community development
General services:
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total general services
Contributions to civic organizations:
Joint Conference Center
Providence Seward Medical Center
Wesley Rehabilitation and Care Center
Seward Life Action Council
Senior Citizens
Museum
Chamber of Commerce
Total contributions to civic organizations
Total general government
Public safety:
Police:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total police
1998
I
Variance
Favorable
Budget al (llnfavorable] Actua
87,997 84,575 3,422 78,594
30,667 29,760 907 31,106
12,312 11,298 1,014 22,354
7,140 5,905 1,235 6,082
4,800 4,050 750 3,485
142,916 135,588 7,328 141,621
2,219 2,219 2,100
61,508 41,914 19,594 77,266
26,975 17,385 9,590 20,918
41,383 37,703 3,680 96,867
132,085 97,002 35,083 197,151
10,500 10,500 47,500
487,204 487,204 351,558
37,357 37,357
13,018 13,018 11,190
1,000 1,000
1,000 1,000 1,000
20,000 20,000 5,000
570,079 570,079 416,248
2,116,015 1,960,687 155,328 1,972,584
43
666,722 618,255 48,467 616,433
227,982 217,610 10,372 254,856
57,360 49,955 7,405 72,973
38,758 36,238 2,520 38,728
20,900 19,949 951 18,544
1,011,722 942,007 69,715 1,001,534
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
Expenditures, continued:
Public safety, continued:
ail:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Capital outlay
Total jail
Animal control:
Salaries
Purchased services
Supplies and maintenance
General and administrative
Total animal control
Fire:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Capital outlay
Total fire
Volunteer training:
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Capital outlay
Total volunteer training
Emergency preparedness:
Purchased services
Supplies and maintenance
General and administrative
Total emergency preparedness
M
F.h'bit F -3 rontineed I
r,
2,300
1998
2,300
1291
4,768 668)
Variance
11,200 6,836 4,364 6,192
Favorable
22,911 4,561)
Budget Actual Ulnfaymahlo Actual
2,626
35,950 34,515 1,435 36,163
217,298 200,692 16,606 199,394
84,356 77,492 6,864 95,416
21,508 20,373 1,135 32,888
9,620 8,988 632 11,119
71,262 70,471 791 46,497
3,750
404,044 378,016 26,028 389,064
2,787) 2,787 2,787
51,401 51,847 446) 42,584
36 36) 5
398 3 97
51,401 49,494 1.907 45.473
115,110 122,512 7,402) 108,820
43,620 39,756 3,864 53,658
132,436 131,758 678 104,209
33,050 32,076 974 27,260
9,142 10,130 988) 8,712
6,160
333,358 336,232 2.874 308,819
r,
2,300 2,300 3,173
4,100 4,768 668) 3,197 '
11,200 6,836 4,364 6,192
18,350 22,911 4,561) 20,975
2,626
35,950 34,515 1,435 36,163
161 1
1,550 21 1,529 2,979
3,750 3,117 633 2,043 '
5,300 3,138 2,162 5,183
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
Expenditures, continued:
Public safety, continued:
Engineer and utility manager:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Capital outlay
Total engineer and utility manager
Building inspector:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total building inspector
Total public safety
Public works:
Roads and streets:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Capital outlay
Total roads and streets
City shop:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Capital outlay
Total city shop
1998 1921
Variance
Favorable
jidgCt Actual (Unfavorable) Actual
64,915 67,066 2,151) 58,684
18,825 17,443 1,382 19,525
12,600 10,896 1,704 11,258
2,500 1,760 740 1,886
3,050 3,499 449) 3,264
45
101.890 100,664
1,000
1,226 95,617
18,329 18,820 491) 18,138
4,315 1,714 2,601 3,701
6,303 5,550 753 5,471
1,400 1,406 6) 858
7,350 5.314 2.036 9,212
37,697 32.804 4,893 37,380
1,981.362 1,876,870 104,492 1,919 233
173.606 152,937 20,669 146,841
72,798 52,773 20,025 62,579
173,559 167.279 6.280 147,356
99,681 86,864 12,817 79,451
2,550 3,952 1,402) 1,698
5.000 4,900 100 5.000
527.194 468,705 58,489 442,925
120,554 103,275 17,279 95,480
51,732 56,313 4,581) 53,932
35,853 39,883 4.030) 42,544
18,875 19,689 814) 18,325
2,225 1,409 816 126
4.000 3,180 820
233,239 223,749 9,490 210,407
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
1998 K.
Variance
Favorable
s AgIJW (Unfavorable l Actual
Expenditures, continued:
113,057 112,077 980 103,686
Public works, continued:
43,683 46,086 2,403) 46,029
Municipal building:
22,743 21,501 1,242 16,053
Salaries 43,391 39,953 3,438 39,974
Employee benefits 16,923 15,768 1,155 18,949
Purchased services 52.900 59,531 6,631) 54,981
Supplies and maintenance 23,200 23,145 55 22,716
General and administrative 400 397 3 434
Total municipal building 136,814 138,794 1,980 137,054
Total public works 897,247 831,248 65,999 790,386
Parks and recreation:
Total debt service 210,868 210,868
Salaries 308,230 302,814 5,416 309,687
Employee benefits 92,939 84,849 8,090 103,809
Purchased services 108,075 95,286 12,789 121,246
Supplies and maintenance 70,672 81,532 10,860) 50,704
General and administrative 52,653 39,620 13,033 44,255
Capital outlay 5,000 4,900 100 2,688
Total parks and recreation 637,569 609,001 28,568 632,389
Libran':
Salaries 113,057 112,077 980 103,686
Employee benefits 43,683 46,086 2,403) 46,029
Purchased services 22,743 21,501 1,242 16,053
Supplies and maintenance 37,487 38,008 521) 43,359
General and administrative 12,314 11,445 869 10,819
Capital outlay 5,900 4,916 984 8,948
Total library 235,184 234,033 1,151 228,894
Debt service:
Principal 115,275 115,275 99,187
Interest 95,593 95,593 121,629
Total debt service 210,868 210,868 220,816
Total expenditures 6,078,245 5,722,707 355,538 5,764,302
Excess of revenues over (under) expenditures 11,757) 755,845 767,602 616,994
46
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
Other financing sources (uses):
Operating transfers from other funds
Operating transfers to other funds
Net other financing sources (uses)
1998 1222
Variance
Favorable
Rudgm Actilal (.tlnfayorable Actual
148,042 177,450 29,408 232,350
1,704,661) (1,716,626 (11,965 ( } 1_ 56,051}.
1,556,6 1,539 176 17,443 76,299
Excess of revenues and other financing sources
over (under) expenditures and other uses $ 1,5( 68,37) (783,331) 785,045
Fund balance at beginning of year 3,715,373
Residual equity transfers from other funds -
Fund balance at end of year $ 2.932,042
47
693,293
3,015,077
7,003
3,71
THIS PAGE LEFT BLANK INTENTIONALLY
48
i
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for revenues from specific
sources, which are restricted to finance particular functions and activities.
Funding sources include external grants and operating transfers from the
General Fund.
i
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for expenditures associated with dedicated or
restricted revenue sources.
Campground Brochure - To account for the federally funded municipal
campground brochure program.
Bicycle Safety - To account for the costs of a bicycle rodeo and bike safety days .
for pre - school, elementary and junior high school .students. The program
promotes bicycle /pedestrian safety, and teaches children to prevent bicycle theft.
Costs include the purchase of bicycle helmets, paint, signs, poles, striper, posters
etc.
Litter Control (ALPAR) - To account for the cost of a City - administered litter
control program. The program employs local youth and is financed by grants
from the non - profit Alaskans for Litter Prevention and Recycling and the Kenai
Peninsula Borough.
Two Lakes Park - To account for acquisition of land, survey and development of
the park area, including site preparation, picnic tables, and other improvements.
Interpretive Signs - To account for the installation of interpretive signs pertaining
to local history and wildlife along the National Historic Iditarod Bike Trail and
boardwalk.
SBA Tree Planting - To account for the cost of acquiring and planting trees in the
Waterfront Park area.
Police Fund - To account for costs incurred for certain police- related activities
with monies provided by the federal government, State of Alaska and City of
Seward.
DARE Program - To account for monies received and expended related to Drug
Awareness Resistance Education.
Emergency Shelter Supplies - To account for the purchase of emergency shelter
supplies in conjunction with improvement of the Seward Emergency Preparedness
Plan.
Seward Comprehensive Plan - To account for the costs of updating the Seward
Comprehensive Plan and preparing and producing the Comprehensive Plan
document.
1
49
SPECIAL REVENUE FUNDS, continued
Historic Records Preservation Phase I -- To account for the costs of preserving the
City's historical records. Funding is provided by a State grant and the City.
Historic Records Preservation Phase 11 - Supplements the prior preservation
grant. 1
Seward Community Cemetery - To account for the refurbishment of the Seward
community cemetery, provide-for improved access to cemetery sites, upgrade and ,
straighten the existing road, plat land to establish formal grave sites, and clear and
level 75 new grave sites. '
i Chugach Heritage Center - To account for design and engineering costs of the
Chugach Heritage and Cultural Center, as part of their renovation of the Seward '
Historic Railroad Depot.
Museum Darkroom - To account for a State grant which is passed through to the
Resurrection Bay Historical Society to construct a photography darkroom.
Prismatic Surgical Lighting -- To account for the cost of prismatic surgical lighting
for the Providence Seward Medical Center. Monies are provided by a State grant.
1
50 1
1
L
THIS PAGEE L FT BLANK INTENTIONALLYE
r-,
I
u
E3 bit G -i
CITY OF SEWARD
Special Revenue Funds
Combining Balance Sheet
June 30, 1998
With Comparative Totals for 1997
Other
Parks and Public General Pass - Totals
Amts Recreation Safety Government Through 7 IM 1997
Cash and investments 31,484 1,126 33,454 66,064 62,284
Grants receivable:
Federal 781 - - 781 970
State 2,9I5 1,454 897 660 5,926 7,968
35,180 2,580 34,351 660 72.771 71.228
Liabilities and FLInd Balances
Liabilities:
Accounts payable 294 313 - 660 1,267 6,982
Deferred revenue 6,957 - 30,071 37,028 19,290
Due to other funds 2,324 - - 2,324
Total liabilities 9,575 313 30,071 660 40,619 26,272
Fund balances - unreserved
and undesignated 25,605 2,267 4.280 32,152 44,956
8 35,180 2,580 34351 660 72,771 71,228
1
1
1
1
52
i
Exhibit G -2
CITY OF SEWARD
Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 1998
With Comparative Totals for 1997
Other
Parks and Public General Pass - Totals
Recreation Safety CtQvernment Through IM 1221
Revenues:
Federal grants 8,969 - 17,050 26,019 1,609
State grants 4,177 1,541 38,828 17,364 61,910 182,708
Miscellaneous 4 -043 30 4,073
Total revenues 17 -189 1.571 3.828 34,414 92 -002 188167
Expenditures;
Salaries and employee benefits 7,108 2,426 1,368 10,902 11,240
Contracted services 5,245 - 38,427 43,672
Supplies 5,617 2,679 1,600 9,896 10,747
19,042
Equipment
Pass - through payments
34,414 34,414 101,988
Other services and charges 3.108 9.863 4,404 17,375 16,877
Total expenditures 2L,078 14,968 45,799 34,414 116,259 159.894
Excess of revenues over (under)
expenditures 3.889) (13,397} 6,971 24,257 ) 28,273
Other financing sources (uses):
Operating transfers from other funds 781 13,183 13,964 48,547
Operating transfers to other funds 2,511 1511 3( 9,38
Net other financing sources (uses) 781 13.183 2,51-1 -) 11,453 9,159
1
Excess of. revenues and other financing
sources over (under) expenditures
and other uses 3,108) (214) 6,971) 2,511) 2,804) 37,432
Fund halances at beginning of year 28,713 2,481 11,251 2,511 44,956 9,672
2,148)
Residual equity transfers to other funds
Fund balances at end of year 25.605 2.267 4.280 32.152 44.956
i
CITY OF SEWARD
Parks and Recreation Special Revenue Funds
Combining Balance Sheet
June 30, 1998
Liabilities:
Accounts payable
Deferred revenue
Due to other funds
Total liabilities
Fund balances - unreserved
and undesi8nated
294 - 294
1,457 5,500 - - 6,957
1,543 - - - 781 2,324
1,543 1,457 5,500 294 781 9,575
25,605 - 25,605
1,543 1,457 5,500 25,899 781 35,180
54
I
FY97 FY98 Two
Bicycle Litter Litter Lakes Interpretive
Asspts Safety ontrol Control Park l,g3 Totals
Cash and investments 1,457 5,500 24,527 31,484
Grants receivable:
Federal
781 781
State 1,543 1,372 2,915
1,543 1,457 5,500 25,899 781 35,180
Liabilities:
Accounts payable
Deferred revenue
Due to other funds
Total liabilities
Fund balances - unreserved
and undesi8nated
294 - 294
1,457 5,500 - - 6,957
1,543 - - - 781 2,324
1,543 1,457 5,500 294 781 9,575
25,605 - 25,605
1,543 1,457 5,500 25,899 781 35,180
54
I
Ea shit G4
CITY OF SEWARD
Parks and Recreation Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 1998
FY97 Two SBA
Campground Bicycle Litter lakes Interpretive Tree
Bmchurs Safety Control- ENk Signs Elanting TalalS
Revenues:
Federal grants 4,351 - 4,618 8,969
State grants 2,500 1,382 295 4,177
Miscellaneous 4,043 4,043
Total revenues 4.351 2 -500 4.043 1382 4_FL18 225 17-182
Expenditures:
Salaries and employee benefits 796 895 4,043 1,028 346 7,108
Contracted services 250 4,995 5,245
Supplies 3,165 2,263 - 189 5,617
Other services and charges 390 123 - 2,514 27 54 3,108
Total expenditures 4,351 3,281 4.043 2,764 6,050 589 21,078
Excess of revenues over
781) - 1,382) 1,432) 294) 3,889) under) expenditures
Other financing sources -
operating transfers from other funds 781 - 78!
Excess of revenues and other
financing sources over (under)
expenditures 1,382) 1,432) 294) 3.108)
Fund balances at beginning of year 26.987 1,432 294 28,713
Fund balances at end of year 25.605 25,605
CITY OF SEWARD
Public Safety Special Revenue Funds
Combining Balance Sheet
June 30, 1998
Emergency
Police Shelter
Assets Fund Supplies Totals
Cash and investments
Grants receivable - State
Liabilities - accounts payable
Fund balances - unreserved and
undesignated
56
651 475 1,126
1,454 1,454
M.r.
651 ...... 1,929 2,58„0.
313 313
651 1,616 2,267
651 1,929 2,580
i
CITY OF SEWARD
Public Safety Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 1998
1
Excess of revenues over (under)
1
expenditures
1
Other financing sources -
Revenues:
State grants
Miscellaneous
Total revenues
Expenditures:
Salaries and employee benefits
Supplies
Other services and charges
Total expenditures
283) 13,397)
Excess of revenues over (under)
679
expenditures
Other financing sources -
1,038
operating transfers from other funds
Excess of revenues and other
107
financing sources over (under)
expenditures
1,824
Fund balances at beginning of year
Fund balances at end of year
Emergency
Police DARE Shelter
Eund Program Supplie Totals
1,541 1,541
0 - 30
30 1,5AI 1 -571
1,747 679 2,426
1,641 1,038 2,679
9,431 325 107 9,863
9,431 3,713 1,824 14,968
9,431) 3,683) 283) 13,397)
9,500 3,683 13,183
69 - 283) 214)
582 - 1,899 2,48I
S 651 - 1,616 2,267
57
CITY OF SEWARD
Other General Government Special Revenue Funds
Combining Balance Sheet
June 30, 1998
Cash and investments
Grants receivable - State
Liabilities and Fund Balances
Liabilities - deferred revenue
Fund balances - unreserved and
undesignated
Historic
Seward Records Seward
Comprehensive Preservation Community
Plan Phase II Cemetery Totals
30,000 1,331 2,123 33,454
897 - 897
30,000 2,228 2,123 34,351
30,000 - 71 30,071
2,228 2,052 4,280
30,000 2, ?28 2,123 34,351
58
Exhibit 6-8
CITY OF SEWARD
Other General Government Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 1998
Historic Historic
Records Records Seward
Preservation Preservation Community
Phasee I Pha§e 11 CemCte r Talau
Revenues - State grants 5 18,413 19,083 1,332 38.828
Expenditures:
Salaries and employee benefits - 267 1,101 1,368
Contracted services 19,951 18,476 38,427
Supplies 1,580 20 1,600
Other services and charges 1,995 2,032 377 4,404
Total expenditures 21,946 22,355 1,498 45.799
Excess of revenues over (under)
3,533) (3,272) 166) 6,971)
expenditures
Fund balances at beginning of year 3,533 5,500 2,218 11,251.
Fund balances at end of vear 5 - 2,228 2,052 4,280
1
1
1
1
1
59
CITY OF SEWARD
Pass - Through Special Revenue Funds
Balance Sheet
June 30, 1998
Grants receivable - State
Liabilities - accounts payable
i
Museum
Darkroom
660
660
i
CITY OF SEWARD
Pass - Through Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 1998
Revenues:
Federal grants
State grants
Total revenues
Expenditures - pass - through payments
Excess of revenues over expenditures
Other uses - operating transfers to other funds
Excess of revenues over (under)
expenditures and other uses
Fund balances at beginning of year
Fund balances at end of year
61
2,511) (2,511
2,511) (2,511)
2,511 2,511
f
Chugach Prismatic
Heritage Museum Surgical
CCUtC z Darkroom Lighting Totals
17,050 17,050
4,278 13,086 17,364
17,050 4,278 13,086 34,414
17,050 4,278 13,086 34,414
61
2,511) (2,511
2,511) (2,511)
2,511 2,511
f
7
THIS PAGE LEIr Y BLANK INTENTIONALLY
1
62
DEBT SERVICE FUND
The Debt Service Fund is used to account for the accumulation of
resources for payment of the $7,500,000 in general obligation bonds issued
for construction of a new medical center, and the retirement of the
liability to the State of Alaska Public Employees Retirement System
resulting from the dissolution of the Seward General Hospital Enterprise
Fund.
F1
CITY OF SEWA"
Debt Service Fund
Balance Sheet
June 30, 1998
with Comparative Amounts for 1997
Cash and investments
Fuuad Balance
Fund balance - reserved for debt service
63
I
242.332
242.3 2 .. 11-284
CITY OF SEWARD
Debt Service Fund
Statement of Revenues, Expenditures
and Changes in Fund Balance
Year Ended June 30, 1998
with Comparative Amounts for 1997
Revenues - investment income
Expenditures - interest expense
Excess of revenues over (under) expenditures
Other financing sources - operating transfers from other funds
Excess of revenues and other financing sources over expenditures
Fund balance at beginning of year
Fund balance at end of year
64
1998
2,759
67,638
64,879)
184,927
1997
6,305
6,305
120,048 6,305
122,284 115,979
242,332 122,284
i
i
CAPITAL PROJECT FUNDS
The Capital Project Funds are established to account for the resources
expended to acquire assets of a relatively permanent nature. These funds
are established for the purpose of segregating the accounting for bond
proceeds, grants and contributions for the acquisition of capital assets.
Capital Project Funds provide a formal mechanism which enables
administrators 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 Project Fund revenue, that their
requirements regarding the use of the revenue were fully satisfied.
CAPITAL PROJECT FUNDS
Capital Project Funds are established to account for the resources expended to acquire assets of a
relatively permanent nature.
Gateway Subdivision - To account for the cost of acquiring lots and developing a
1 park. Monies are provided by a State grant and the City.
Bike Path Continuation - To account for the construction of a high school bike
path extension. Monies were provided through a State matching grant.
Mini - Service Campground - To account for the construction of a full- service
campground section that -includes water and electric hook -ups and picnic tables for
twenty recreation vehicle sites. Monies were provided by the General Fund
campground revenues.
Ballfield - To account for the cost of a new community softball field called
Citizens Field." Funding is provided by the City.
City Playgrounds - To account for the costs of upgrading, repairing and
constructing tot lots and playgrounds in the City.
Hoben Park - To account for improvements to Hoben Park, located adjacent to
the Alaska SeaLife Center, including removal and replacement of fencing,
monuments and trees, and installation of a sidewalk.
Police Dispatch - To account for the renovation of police dispatch electrical
wiring and radios to meet compliance requirements of the Americans with
Disabilities Act. Monies were provided through a State matching grant.
1995 Flood Disaster - To account for grants from the Federal Emergency
Management Agency for the, repair and restoration of damaged roads, bridge
approaches, and culverts; the installation of culverts and levees; and the dredging
of a portion of the Small Boat Harbor, as a result of the 1995 flood disaster.
Seward Association for Advancement of Marine Science - To account for the
development of the Alaska Sealife Center as a recreation and marine mammal
rehabilitation center and as a center for education and research related to the
natural resources injured by the Exxon Valdez oil spill and to the prevention and
amelioration of marine spills. Monies are provided primarily by grants from the
federal government, State of Alaska and the Exxon Valdez Oil Spill Trustee
Council.
i
N
CAPITAL PROJECT FUNDS, continued
Capital Acquisition - To account for purchase of equipment not financed by the
Motor Pool Fund and capital improvements and projects of at least $20,000. ,
Funding is provided as available from the General Fund.
Hospital Construction - To account for the cost of constructing the new hospital. '
Funding is provided primarily by the 1996 hospital bond issue for $7.5 million.
Street Paving - To account for the cost of repairing, resurfacing and upgrading r
various City intersections. Funding is provided by a State grant and the City.
Library Information & Technology - To account for the costs of improving '
technological resources at the library, including automation of the catalogue and
circulation systems, and installation of new public- access computers and printers '
with Internet access.
66 1
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PHIS PAGE LEFT BLANK INTENTIONALLY
67
Exhibit i -1
CITY OF SEWARD
Capital Project Funds
Combining Balance Sheet
June 30, 1998
with Comparative Totals for 1997
Other
Parks and Public General Totals
t,iS 15 Recreation Sakly Government Libmly 1998 1qQ
Cash and investments $ 108.438 - 1,615.755 1,975 1,726,168 7,434,593
Grants receivable - State 3,682 - 3,682 1,828,626
Other receivables 1,123 1,123 4,891
108.438 _2 1.616.878 1.975 1,730.973 9,268,110
Liabilities and Fund Balances
Liabilities:
Accounts payable 8,768 1,770 376,987 387,525 3,146,901
Deferred revenue 21.637 - - 84 21,721 23,107
Due to other funds 1,912 1,123 3,035 39.681
Total liabilities 30.405 3,682 378,110 84 412,281 3,209,689
Fund balances - unreserved - designated
for capital improvements 78.033 1,238,768 1,891 1,318,692 6,058,421
108,438 3,682 1.616.878 1.975 1,730,973 9.268.110
1
1
1
1
68
i
i
i
i
i
CITY OF SEWARD
Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 1998
with Comparative Totals for 1997
Revenues:
Federal grants
State grants
Land sales
Investment income
Miscellaneous
Total revenues
Expenditures:
Salaries and employee benefits
Contracted services
Supplies
Buildings
Equipment
Interest
Pass - through payments
Other services and charges
Total expenditures
Excess of revenues
over(under)expenditures
Other tinancme sources (uses):
Operating, transfers from other funds
Operating transfers to other funds
Proceeds from issuance of bonds
Net other financing sources I uses)
Excess of revenues and other
financing sources over (under)
expenditures and other uses
Fund balances at beginning of year
Fund balances at end of year
132,256) 15,580 (4,818,109) (2,516) (4,937,301) (1,972,005)
48,541 169,077 4,407 222,025 286,553
16,453) (8,000) - (24,453) (44,575)
7,500,000
48,541 (l_ 6,453) 161,077 4,407 197,572 7,741.978
83,715) 873) (4,657,032)
Other
5,769,973
161,748 873 5,895,800
Parks and Public General
1.238,768
Totals
Recreation SAW i ibEAU 1948 1222
S - 51,785 51,785 69,021
343 18,106 6,560,665 14,205 6,593,319 18,107,585
159,585 159,585
199,546 199,546 288,220
77,652 77,652 55,820
343 69,891 6997,448 14,205 7,081,887 18,520.646
363 363 63,940
129,110 23,644 324,436 477,190 328,849
586 30,667 31,253 18,325
20,495 20,495
2,503 15,659 18,162 120,722
338,192 338,192 209,690
10,977,716 10,977,716 19,604,098
37 154,718 1,062 155.817 147,027
132,599 54,311 11,815,557 16,721 12,019,188 20,492,651
132,256) 15,580 (4,818,109) (2,516) (4,937,301) (1,972,005)
48,541 169,077 4,407 222,025 286,553
16,453) (8,000) - (24,453) (44,575)
7,500,000
48,541 (l_ 6,453) 161,077 4,407 197,572 7,741.978
83,715) 873) (4,657,032) 1,891 (4,739,729) 5,769,973
161,748 873 5,895,800 6,058,421 288,448
78,033 1.238,768 1.891 1,318,692 6,058,421
69
Fxhibit L
CITY OF SEWARD
Parks and Recreation Capital Project Funds
Combining Balance Sheet
June 30, 1998
t
Gatewa y Bike Path Mini - Service City Hoben
Suhdivi<ian CQnLji tpII Camn aund 1 d P13yY rounds Pxk Totals
Cash and investments S 11,840 20,796 66 5? 6 1. '438
Liabilities:
8,768 8,76S
Accounts payable 21.63'1
Deferred revenue 11,840 9,747 -
30,403
Total liabilities 11,840 9,797 8,768
Fund balances - unreserved - designated
106 18,387 42,295 6.246 78,033
for capital improvements 10,999
11,840 20.796 106 27.155 42,291 6.246 108.435
1
1
70
Exhihit 1-4
CITY OF SEWARD
Parks and Recreation Capital Project Funds
Combining Statement of Revenues, Expenditures
and Chanfes in Fund Balances
Year Ended June 30, 1998
1
Bike Path Mini - Service City Hobert
Continuation Camparoun d mod Playgrounds Park T9.1ais
Revenues - State grants S 343 - 343
Expenditures:
Salaries and employee benefits 363 363
Contracted services 129,110 y 129,110
Supplies 586 586
Equipment 2,503 2,503
Other services and charges 37 37
Total expenditures 400 586 131,613 132,599
Excess of revenues
over(under)expenditures 57) (586) 131,613) 132,256)
Other financing sources -
operating transfers from other funds 42,295 6.246 48,541
Gxcess of revenues and other
financing sources over (under)
expenditures 57) (586) 131,613) 42,295 6,246 83,715)
beginning 11,056 692 150,000 161,748Fundbalancesatofyear
Fund balances at end of year 10,999 106 18,387 42,295 6,246 78,033
Grants receivable - State
Liabilities:
Accounts payable
Due to other funds
Total liabilities
CITY OF SEWARD
Public Safety Capital Project Funds
Combining Balance Sheet
June 30, 1998
72
1995
Police Flood
I2iVM;h DisasIeI
780 2,902 _
1 ,770 1 ,770
780 1,132 1,912
S 780 2,902 3.682
i
CITY OF SEWARD
Public Safety Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 1998
Revenues:
Federal grants
State grants
Total revenues
Expenditures:
Contracted services
Supplies
Total expenditures
Excess of revenues
over (under) expenditures
Other uses - operating transfers to other funds
Excess of revenues over (under)
expenditures and other uses
Fund balances at beginning of year
Fund balances at end of year
I
73
1995
Police Flood
Dispatch Eiisaster La&
51,785 51,785
844 17262 18,106
844 69,047 69,891
23,644 23,644
1,717 28,950 30,667
1,717 52,594 54,311
873) 16,453 15,580
16,453) (16,453
873) - (873)
873 - 873
CITY OF SEWARD
Other General Government Capital Project Funds
Combining Balance Sheet
June 30, 1998
Cash and investments
Other receivables
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund balances - unreserved - designated
for capital improvements
Seward
Association
for
Advancement
of Marine Capital Hospital
S1C,C Acquisition Construction JgJ&
354,718 1,261,037 1,615,755
1,123 = - 1,123
1,123 354,718 1,261,037 1,616,878
376,987 376,987
1,123 - - 1,123
1,123 - 376,987 378,110.
354,718 884,050 1,238,768
1,123 354,718 1,261,037 1,616,878
74
r
i
CITY OF SEWARD
Other General Government Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 1998
Revenues:
State grants
Land sales
Investment income
Miscellaneous
Total revenues
Expenditures:
Contracted services
Buildings
Interest
Pass- through payments
Other services and charges
Total expenditures
Excess of revenues
over ( under) expenditures
Seward
Association
for
Advancement
of Marine Capital 'Hospital Street
cien c Acquisition Construction Ru= Totals
S 6,555,080 5,585 6,560.665
159,585 159,585
19,859 179,687 199,546
27,652 50,000 77,652
6,582,732 229,444 179,687 5,585 6,997,448
65,592 252,766 6,078 324,436
20,495 20,495
338,192 338,192
6,516,177 4,461,539 10,977,716
66 -555 61.989 25 -566 608 154,718
6,582,732 148,076 5,078,063 6,686 11,815,557
81,368 (4,898,376) (1,101) (4,818,109)
Other financing sources (uses):
Operating transfers from other funds - 25,485 143,592 - 169,077
Operating transfers to other funds - (8.000) - - (8.000)
Net other financing sources (uses) - 17,485 143.592 - 161,077
Excess of revenues and other
financing sources over (under)
expenditures and other uses
Fund balances at beginning of year
Fund balances at end of year
98,853 (4,754,784) (1,101) (4,657,032)
255,865 5,638,834 1,101 5,895,800
S - 354.718 884,050 - 1,238,768
75
CITY OF SEWARD
Library Capital Project Fund
Balance Sheet
June 30, 1998
Cash and investments
Liabilities - deferred revenue
Fund balance - unreserved - designated
for capital improvements
76
Library
Information
Technol=
1,975
84
1,891
1,975
i
i
Exhibit 1-10
CITY OF SEWARD
Library Capital Project Fund
Statement of Revenues, Expenditures
and Changes in Fund Balance
Year Ended June 30, 1998
Library
Information
Technolou
Revenues - State grants S 14,205
1 Expenditures:
Equipment 15,659
Other services and charges 1,062
Total expenditures 16,721
Excess of revenues
over (under) expenditures 2,516)
Other financing sources -
operating transfers from other funds 4,407
Excess of revenues and other
financing sources over 1,891expenditures
Fund balance at beginning of year
Fund balance at end of year S 1,891
1
77
1
THIS PAGE LEFT BLANK INTENTIONALLY
78
I
I -
ENTERPRISE FUNDS
1 The 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.
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 - To account for the provision of electrical service to the residents of the
City and other areas within the electric service area.
Water and Sewer - To account for the provision of water and sewer services to
the residents of the City.
Harbor - To account for the provision of harbor and marine services to the public,
on Resurrection Bay.
Parking Revenue - To account for the provision of public parking services.
r
t
79
Current assets:
Gash' and investments
Receivables:
Accounts
Grants
Other
Less allowance for doubtful receivables
Net accounts receivable
Prepaid expenses
Inventory
Advances to other funds - current portion
Total current assets
Restricted assets - cash and investments restricted
for bond retirement
Assessments recci%able
Prupert%, plant and equipment:
Property, plant and equipment to service
Less accumulated depreciation
Net property, plant and equipment to service
Construction to progress
Total property, plant and equipment
AdNances to other funds, excluding current portion
Loan receivable - Alaska Railroad Corporation
Deferred charges - unamorttzed debt issuance costs
CITY OF SEWARD
Enterprise Funds
Combining Balance Sheet
June 30, 1998
with Comparative Totals for 1997
Water
Electric and Sewer
Parking Totals
Beveou. IM `Am
w
5 3,183,589 1,122,700 200 57,593 4,364,082 3.050,104
38,789,082 14,702,532 59,902,687 110,050,424
14,533,847)
1
670,284 209,166 254,156 12,391 1,145,99" 1,039.568
43,912,690 76,928,363
15,160 15,160 14,556
851,235
16,186
24,521,547 8,984,684
16,186 77,391
46, 14,408) 60,(00) 121328) 93603)
639.550 194,758 209,316 12,391 1,056,015 982,912
40,611
11,537
22,682 63.293
11,537
523,774 38,939 562,713 577,429
44,749,875
19,712 19,712 18,521
4,378,162 1,356,397 209,516 69,984 6,014,059 4,628,966
307,205 307205 307,205
5,908 9282
t
t
80
I
38,789,082 14,702,532 59,902,687 113,394,301 110,050,424
14,533,847) 5,942,094) 15,989,9 36,4 33.665,851
24,255,235 8,760,438 43,912,690 76,928,363 76,384,573
266,312 224,246 360,677 851,235 3,823,297
24,521,547 8,984,684 44,273,367 77,779,598 80,207,870
19,712
244,310 244,310 244.310
40,611 22,682 63.293 71,363
S 29.253.433 10341,081 44,749,875 69,984 84,414,373 85,488.708
t
t
80
I
i
Liabilities:
Current liabilities:
Accounts payable
Current portion.
Bonds payable
Notes payable
Capital lease obligations
Retirement incentive program payable
Customer deposits
Accrued annual leave
Accrued interest
Other accrued liabilities
Deferred revenue
Due to other funds
Advances from other funds • current portion
Total current liabilities
Deferred revenue - Alaska Railroad Corporation
loan receivable
Long -tern debt, excluding current portion:
Bonds payable
Less unamorttzed deferred amount on refunding
Note$ payable
Capital lease obligations
Retirement incentive program payable
Advances from other funds
Total Ions -term debt
Total habdiues
Fund equity:
Contributed capital
Less accumulated amortization
Net contributed capital
Retained earnings - unreserved
Total fund equity
CITY OF SEWARD
Enterprise Funds
Combining Balance Sheet, continued
81
Water Parking Totals
Electric andSevve[ Hubai Revenue 1.248 1922
a 240,453 125,905 45,469 34,395 446,222 319,953
625.000 123,525 748.525 689.408
37,454 37,454 35,960
60,000 60,000 55.000
12,317 12.317
190,767 190,767 129,832
49,971 13,923 41,659 105,553 106,327
57,897 23,646 19,030 100,573 84,480
12,102 5,420 13.422 30,944 66,156
41,659 41,659 51,845
117,185 117,185 1,859,556
19,712 19,712 18,521
1,176390 206,348 493,978 34,395 1.910.911 3,417,038
244,310 244,310 244,310
6,375,000 1,449,360 7,824.360 8,572,885
189,804) 150,477) 340,281) 382,444)
793,490 793,490 830,945
535,000 535,000 595,000
24,634 24,634
19.712
6,185,196 793.490 1,858.517 8.837,203 9,636,098
7,361,386 999,838 2,596,805 34,395 10,992,424 13,297,446
22,716,571 11.700,169 53,435,882 87,852,622 87,626,178
6,171,091) 5,374,789) 13,753.712) 25,299,592) 23,037,488)
16,545,480 6,325,380 39,682,170 62,553,030 64,588,690
5,346,567 3,015,863 2,450,281 35,589 10.848.300 702,572
21.892.047 9,341,243 42,132,451 35.589 73.401,330 72,191,262
5 29,253.433 10,341,081 44,729,256 69,984 84.393.754 85,488,708
81
CITY OF SEWARD
Enterprise Funds
Combining Statement of Revenues,
Expenses and Changes in Retained Earnings
Year Ended June 30, 1998
with Comparative Totals for 1997
Operating revenues
Operating expenses
Earnings from operations before
depreciation
Depreciation
Earnings (loss) from operations
Nonoperating revenues (expenses):
Gain (loss) on disposal of property
Investment income
Interest expense
Other rc%enucs
Othercxpenses
Net nonoperattng revenues (expenses)
Earnings (loss) before operating
transfers
Operating transfers:
From other funds
To other funds
Net operating transfers
Net earnings (loss)
Amortization of contributed capital
Increase in retained earnings
Retained earnings at beginning of year
Residual equity transfers to other funds
Retained earnings at end of year
Exhibit J -2
83
Water Parking Totals
Electric and Sewer harbor Revenue IM im
S 6,275,240 1,432,526 1,821,001 67,585 9,596,352 9,117,037_
4,566,438 886,385 1,519.676 44,031 7,016,530 6.460,271
1,708,802 546,141 301,325 23,554 2,579,822 2,656,766
1,111,607 383,872 1,304,608 2,800,087 2. 795,579
597,195 162,269 1,003,283) 23,554 220, 265) 138,813)
638,828 638,828 42,269)
152,884 64,609 13,582 834 231,909 155,578
427,428) 36,338) 221,317) 685,083) 749,574)
948 948 89,168
4^837) 4,837) 50,866)
73,596) 28.271 426,256 834 181,765 597,963)
33,599 190,540 577,027) 24,388 38,500) 736,776)
1,295,710 1,295,710
25.000) 248,586) 273,586) 317,571)
25,000M 1,047,124 1,022,12 -1 3( 17,57.1)
298,599 190,540 470,097 24,388 983,624 1,054,347)
780.023 372,908 1,109,173 2,262,104 2,242,968
1,078,622 563,448 1,579,270 24,388 3,245,728 1,188,621
4,267,945 2,452,415 871,011 11,201 7,602,572 6,418,806
4,855 -)
S 5,346,567 3,015,863 2,450,281 35.589 10.848.300 7.602,572
83
CITY OF SEWARD
Enterprise Funds
Combining Statement of Cash Flows
Year Ended June 30,1998
with Comparative Totals for 1997
Cash flows from operating activities:
Earnings (loss) from operations
Adjustments to reconcile earnings (toss) from
operations to net cash flows from operating
activities:
Depreciation
Other nonoperating revenues (expenses)
Increase (decrease) in allowance for
doubtful receivables
Increase) decrease in assets:
Receivables
Assessments receivable
Prepaid expenses
Inventory
Increase (decrease) to liabilities:
Accounts payable
Customer deposits
Accrued annual leave
Other accrued liabilities
Due to other funds
Deferred revenue
Retirement incentive program payable
Net cash flows from operating activities
Cash flows from noncapttal financing activities:
Operating transfers from other funds
Operating transfers to other funds
Residual equity transfers to other funds
Decrease in advances to other funds
Decrease in advances from other funds
Interest on central treasury borrowings
Receipts on loan to Alaska Railroad Corporation
Net cash flows from noncapital
financing activities
Water
metric and Sewer Harr i
E&hibit J -3
I
I
Parking Totals
RrvL-na Am
S 597,195 162,269 1,003,283) 23,554 220,265) 138,813)
I
1,111,607 383,872 1,304,608 2,800,087 2,795,579
75 4,837) 4,762) 37,212
3,963 4,747 19,015 27,725 52,543)'
54,518) 67,038) 19,880 848 100,828) 163,007
3,374 3,374 2,160
11,537) 11,537)
14,572 144 14,716 26,320)
48,455 27,154 16265 34,395 126,269 100,411)
60,935 60,935 45,165)
4,396 1,419 6,589) 774) 12,215)
1,024 965 12,426) 10,437) 23,222)
1,740,333) 2,038) 1,742,371) 306,679
10,433 10,433 92.692)
36,951 36,951
1,779,541 513,532 1.360.316} 56.759 989,516 2,813,256
1,295,710 1,295,710
25,000) 248,586) 273,586) 317,571)
4,855)
18,521 18,521 17,402
18,521) 18,521) 17,402)
69,059) 69,059) 90,863)
33,690
6,479) 959,544 953,065 379,599)
84
CITY OF SEWARD
Exhibit 1-3- cQj]tj]Ued
Enterprise Funds
Combining Statement of Cash Flows, continued
Water Parking Totals
Flectric and Sewer Harb QI Reven It IM IM
Cash flows from capital and related financing activities:
Principal payments on long -tern debt S (570,000) 35,961) 174,408) 780,369) 724,091)
Interest payments on long -term debt 399,217) 37,467) 137,789) 574,473) 617,594)
Acquisition of property, plant and equipment 209,276) 219,395) 29,316) 457,987) 733,130)
Proceeds from sale of property 725,000 725,000
Contributed capital 99,641 123,100 3,703 226,444 351,533
Deferred revenue 3,443)
Penalties and interest on special assessments 873 873 1,090
Net cash flows from capital
and related financing activities 1,077,979) 16( 9,723) 387,190 860,5 i 2 1,725,635
Cash flows from investing activities -
investment income received 152,884 64,609 13,582 834 231,909 155,578
Net increase in cash and investments 847,967 408,418 57,593 1,313,978 863,600
Cash and investments at beginning of year 2,642,827 714,282 200 3,357,309 2,493,709
Cash and investments at end of year 5 3.490,794 1,122,700 200 57,593 4,671,287 3,3579
Reconciliation of cash and investments to balance sheet:
Cash and investments:
Current assets 3,183,589 1,122,700 200 57,593 4,364,082 3,050,104
Restrrctcd assets 307,205 - - - 307,205 307,205
5 3,490,794 1,122,700 200 57.593 4,671,287 3,357,309
1
85
CITY OF SEWARD
Electric Enterprise Fund
Balance Sheet
June 30, 1998
with Comparative Amounts for 1997
Current assets:
Cash and investments
Receivables:
Accounts
Other
Less allowance for doubtful receivables
Net receivables
Prepaid expenses
Inventory
Advances to other funds - current portion
Total current assets
Restricted assets - cash and investments restricted
for bond retirement
Assessments receivable:
Delinquent
Deferred
Total assessments receivable
Property, plant and equipment:
Property, plant and equipment in service
Less accumulated depreciation
Net properly, plant and equipment in service
Construction in progress
Total property, plant and equipment
Advances to other funds, excluding current portion
Deferred charges - unamortized debt issuance costs
86
144 IM
3,183,589 2,335,622
670,284 613,673
16,186 18,279
46,920) a( 2,957}
639,550 588,995
11,537 -
523,774 538,346
19,712 18,521
4.378,162 3,481,484
307,205 307,205
244
5,908 9,038
5,908 9,282
38,789,082 35,380,566
14,533,847) 13,422,240
24,255,235 21,958,326
266,312 3,465,552
24,521,547 25,423,878
19,712
40,611 46,413
29.253,433 29287,974
Exlsibit 1 d
CITY OF SEWARD
Electric Enterprise Fund
Balance Sheet, continued
Liahilities and Fund Fqui Z
Liabilities:
Current liabilities:
Accounts payable 240,453 191,998
Current portion of bonds payable 625,-000 570,000
Customer deposits 190,767. 129.832
Accrued annual leave 49,971 45,575
Accrued interest 57,897 62,603
Other accrued liabilities 12,102 1 1.078
Total current liabilities 1.176,190 1,011,086
Long -terns debt - bonds payable, excluding
current portion 6,375,000 7,000,000
Less unamortized deferred amount on refunding 189,804) 2T ( 16,919)
Net long -term debt 6,185,196 6,783.081
Total liabilities 7,361,386 7,794,167
Fund equity:
Contributed capital 22,716,571 22.616,930
Less accumulated amortization 6,171,091) 5.391,068)
Net contributed capital 16,545,480 17,225,862
Retained eamings - unreserved 5.346,567 4,267.945
Total fund equity 21,892.047 21.493,807
29,253,433 29.287,974
t
87
Exhibit 1-5
CITY OF SEWARD
Electric Enterprise Fund
Statement of Revenues, Expenses
and Changes in Retained Earnings
Year Ended June 30, 1998
with Comparative Amounts for 1997
1m 13 Z
Operating revenues:
Residential 1,807,018 1,744,925
Small general service 1,365,312 1,316,444
Large general service 2,353,337 1,962,003
Industrial 421,010 420,067
Harbor power 112,507 112,410
Street and yard lights 65,718 65,793
Miscellaneous 150,338 223,277
Total operating revenues 6,275,240 5,844,919
Operating expenses:
Power 2,676,872 2,269,952
Distribution
Administration and general
298,692
1,590,874
347,675
1,457,133
Total operating expenses 4,566,438 4,074,760
Earnings from operations before depreciation 1,708,802 1,770,159
Depreciation 1,111,607 1,119,181
Earnings from operations 597,195 650,978
Nonoperating revenues (expenses):
Investment income 152,884 110,780
Interest expense 427,428) 455,280)
Penalties and interest on assessments 873 1,090
Other revenues 75 40,000
Net nonoperating revenues (expenses) 273,596) 303,410)
Earnings before operating transfers 323,599 347,568
Operating transfers to other funds 25,000) 18( 0,381)
Net earnings 298,599 167,187
Amortization of contributed capital 780,023 785,384
Increase in retained earnings 1,078,622 952,571
Retained earnings at beginning of year 4,267.945 3,315,374 t
Retained earnings at end of year 5,346,567 4,267,945
88
CITY OF SEWARD
Electric Enterprise Fund
Statement of Cash Flows
Year Ended June 30, 1998
with Comparative Amounts for 1997
IM 1291
Cash flows from operating activities:
Earnings from operations 597,195 650,978
Adjustments to reconcile earnings from operations to net
cash flows from operating activities:
Depreciation 1,111,607 1,1 19,181
Other nonoperating revenues 75 40,000
Increase in allowance for doubtful receivables 3,963 221
increase) decrease in assets:
Receivables 54,518) 26,567)
Assessments receivable 3,374 2,160
Prepaid expenses 11,537)
Inventor% 14,572 30,594)
Increase (decrease) in liabilities:
Accounts payable
Customer deposits
48,455
60,935
22,753
45,165)
Accrued annual leave 4,396 163)
Other accrued liabilities 1.024 611
Net cash flows tram operating activities 1,779,541 1,733,415
Cash flows from noncapital financing activities:
Operating transfers to other funds 25,000) 180,381)
Decrease in advances to other funds 18321 17,402
Net cash flo-,vs from noncapital financing activities 6,479) 1( 62,979}
Cash flows from capital and related financing activities:
Principal payments on long -term debt 570,000) 488,000)
Interest payments on long -term debt 399,217) 428,863)
Acquisition of propem, plant and equipment 209,276) 266,408)
Contributed capital 99,641 157,386
Deferred revenue 3,443)
Penalties and interest on special assessments 873 1,090
Net cash flows from capital and related financing activities 1,077,979) 1,028,238)
Cash flows from investing activities - investment income received 152,884 110,780
Net increase in cash and investments 847,967 652,978
Cash and investments at beginning of year 2.642,827 1,989,849
Cash and investments at end of year S 3,490,794 2,642,827
Reconciliation of cash and investments to balance sheet:
Cash and investments:
Current assets S 3,183,589 2,335,622
Restricted assets 307,205 307,205
I
89
S 3,490,794 2.642,827
Exhibit J-7
CITY OF SEWARD
Electric Enterprise Fund
Schedule of Operating Expenses
Year Ended June 30, 1998
with Comparative Amounts for 1997
122$ 1222
Power:
Salaries and employee benefits S 14,165 9,268
Purchased services 54,678 48,548
Power for resale 2,586,398 2,171,684
Supplies and maintenance 21,631 40,452
Total power 2,676,872 2,269,952
Distribution:
Salaries and employee benefits 316,947 317,479
Salary credits - work orders 120,941) 103,628)
Purchased services 28,114 21,490
Supplies and maintenance 176,361 183,978
Supply credits - work orders 112,247) 71,072)
Administration and general 10,458 1,950
Total distribution 298,692 350,197
Administration and general:
Salaries and employee benefits 325,466 336,283
Purchased services 171,741 125,676
Supplies and maintenance 100,832 29,125
Payment in lieu of taxes 502,019 470,724
Administrative fee 419,953 409,251
Other 70,863 86,074
Total administrative and general 1,590,874 1,457,133
Total operating expenses S 4,566,438 4,077,282
1
90
t
CITY OF SEWARD
Electric Enterprise Fund
Schedule of Electric Capital Projects
Year Ended June 30, 1998
Funding sources - Electric funds
Expenditures;
Contracted services
Supplies
Other services and charges
Total expenditures
m
1 -Line
S 25,
20,887
4,473
400
S 25,760
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t
1
u
t
r
CITY OF SEWARD
Water and Sewer Enterprise Fund
Balance Sheet
Tune 30, 1998
with Comparative Amounts for 1997
AsyCti
Current assets:
Cash and investments
Receivables:
Accounts
Other
Less allowance for doubtful receivables
Net receivables
Inventory
Total current assets
Property, plant and equipment:
Property, plant and equipment in service
Less accumulated depreciation
Net property, plant and equipment in service
Construction in progress
Total property, plant and equipment
Liabilities:
Current habrhties:
Accounts payable
Current portion of notes payable
Accrued annual leave
Accrued interest
Other accrued liabilities
Total current liabilities
Long -term debt - notes payable, excluding current portion
Total liabilities
Fund equity:
Contributed capital
Less accumulated amortization
Net contributed capital
Retained earnings - unreserved
Total fund equity
92
L9A 1821
S 1,122,700 714,282
209,166 138,016
4,112
14.408 9.661)
194.758 132,467
38,939 39.083
1,356.397 885,832
14,702,532 14,702,5 32
5.942,094} 5,5 58,222)
8,760,438 9.144,310
224,246 4,851
8.984,684 9,149,161
S 10,341.081 10,034,993
125.905 98,751
37.454 35,960
13,923 12.504
23,646 24,775
5.420 4,455
206,348 176,445
793,490 830,945
999,838 1,007.390
11,700,169 11,577,069
5.374,789) 5.001,881)
6,35,380 6,575,188
3,015,863 2.452,415
9,341,243 9.027.603
S 10,341.081 10,034.993
CITY OF SEWARD
Water and Sewer Enterprise Fund
Statement of Revenues, Expenses
and Changes in Retained Earnings
Year Ended June 30, 1998
with Comparative Amounts for 1997
1998 1997
Operating revenues:
572;299 567,832
Residential
Small general service 134,903 118,423
Large general service 244,356 273,494
Industrial 122,429 110,511
Seward Marine Industrial Center 136,870 120,283
Ship water sales 143,780 39,330
Miscellaneous 77,889 109,326
Total operating revenues 1,432,526 1,339,199
Operating expenses:
Distribution 377,823 425,302
Supplies and maintenance 71,331 67,478
Administration and general 437,231 453,790
Total operating expenses 886,385 946,570
Earnings from operations before depreciation 546,141 392,629
Depreciation 383,872 402,771
Earnings (loss) from operations 162,269 10,142)
Nonoperating revenues (expenses):
Loss on disposal of assets - {42,269)
Investment income 64,609 30,462
Interest expense (36,3-38) X38,206)
Net nonoperating revenues (expenses) 28,271 50,013
Net earnings (loss) 190,540 (60,155)
Amortization of contributed capital 372,908 372,913
Increase in retained earnings 563,448 312,758
Retained earnings at beginning of year 2,452,415 2,139,657
Retained eamings at end of year $ 3.015.863 2.452,415
93
r
Exhibit 1-11
CITY OF SEWARD
Water and Sewer Enterprise Fund
Statement of Cash Flows
Year Ended June 30, 1998
with Comparative Amounts for 1997
1995 lm
Cash flows from operating activities:
Earnings (loss) from operations $ 162,269 10,142) '
Adjustments to reconcile loss from operations
to net cash flows from operating activities:
Depreciation 383,872 402,771
Increase in allowance for doubtful receivables 4,747 61
Increase) decrease in assets:
Receivables 67,038) 87,479
Inventory 144 4,274
Increase (decrease) in liabilities:
Accounts payable 27,154 75,447
Accrued annual leave
Other accrued liabilities
1,419
965
1,778
239)
Net cash flows from operating activities 513,532 561,429
Cash flows from capital and related financing activities:
Principal payments on long -term debt 35,961) 74,919)
Interest payments on long -term debt 37,467) 38,206)
Acquisition of property, plant and equipment 219,395) 74,783)
Contributed capital
Net flows from financing
123,100
169,723) 187,908) cash capital and related activities
Cash flows from investing activities - investment income received 64,609 30,462
Net increase in cash and investments 408,418 403,983
Cash and investments at beginning of year 714,282 310,299
Cash and investments at end of year $ 1,122,700 714,282
1
94
CITY OF SEWARD
Water and Sewer Enterprise Fund
Schedule of Operating Expenses
Year Ended June 30, 1998
with Comparative Amounts for 1997
Distribution:
Salaries and employee benefits S 143,378 157,147
Purchased services
200,043 227,140
Supplies and maintenance
34,402 41,015
Total distribution 377,823 425,302
Supplies and maintenance:
Salaries and employee benefits 21,244 20,792
Purchased services
37,040 30,228
J
Supplies and maintenance
13,047 16,458
Total supplies and maintenance 71,331 67,478
Administration and general:
Salaries and employee benefits 40,675
Purchased ser`ices 3,
548
232,519 36,858
Supplies and maintenance
44,354 28,871
Payment in lieu of taxes 114,6Q2 1Q4,142
Administrative fee 178,561 23Q,859
Other
10,647 12,385
Total administration and general 438,231 453,790
Total operating expenses 5 887,385 946,570
95
i
Exhibit J-13
CITY OF SEWARD
Water and Sewer Enterprise Fund
Combining Schedule of Water and Sewer Capital Projects
16,975
Year Ended June 30, 1998
Harbor funds 101,211 101,211
Harbor
Total funding sources
Boardwalk
16.975
Water /Sewer
Line Wellhouse IQUIS
Funding sources:
Water funds S 101,209 16,975 118,184
Harbor funds 101,211 101,211
Total funding sources 202,420 16.975 219,395
Expenditures:
Salaries and employee benefits 1,228 1,228
Contracted services
Supplies
152,300
48,892
152,300
48,892
Equipment 16,975 16,975
Total expenditures S 202,420 16,975 219.395
96
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ICITY OF SEWARD
Harbor Enterprise fund
Balastce Sheet
une 30,1998
with Comparative Amounts for 1997
gggrlq 1148 1`222
Current assets:
5 200 200
Cash and investments
Receivables:
Accounts 254,156 274,640
Grants 15,160 14,556
Less allowance for doubtful receivables X60,000) 40,98)
Net receivables 209.316 248.211
Total current assets 209,516 248.411
Property, plant and equipment:
Property, plant and equipment in service 59,902.687 59,967,326
Less accumulated depreciation 15,989,997 14,685,389)
Net property, plant and equipment in service 43,912.690 45.281,937
Construction in progress 360,677 352.894
Total property, plant and equipment
44,273,367 45.634,831
Loan receivable - Alaska Railroad Corporation 244,310 244,310
Deferred charges - unamorttzed debt issuance costs 22,682 24.950
S 44,749.875 46. 152,502
Liabilities:
Current liabilities:
Accounts payable 45,469 29,204
Current portion:
Bonds payable 123,525 119,408
Capital lease obligations 60.000 55,000
Retirement incentive program payable 12.317
Accrued annual leave 41.659 48,248
Accrued interest 19,030 21,877
Other accrued liabilities 13,422 25,848
Deferred revenue 62,278 51,845
Due to other funds 117,185 1.857,518
Advances from other funds - current portion 19.712 18.521
Total current liabilities 514,597 2.227,469
Deferred revenue - Alaska Railroad Corporation loan receivable 244.310 244.310
Long -term debt, excluding current portion,
Bonds payable 1,449,360 1,572,885
Less unamortized deferred amount on refunding 150,477) 165,525)
Capital lease obligations 535,000 595,000
Retirement incentive program payable 24,634
Advances from other funds 19.712
Total long -term debt 1,858,517 2.022,072
Total liabilities 2,617,424 4.493.851
Fund equity:
Contributed capital 53,435,882 53,432,179
Less accumulated amortization 13.753,712 (12,644,539}
Net contributed capital 39,682,170 40,787,640
Retained earnings - unreserved 2,450.281 871,011
Total fund equity 42.132.451 41,658,651
S 44.749,875 46,152.502
97
CITY OF SEwARD
Harbor Enterprise Fund
Statement of Revenues, Expenses
and Changes in Retained Earnings
Year Ended June 30, 1998
with Comparative Amounts for 1997
i
im 1221
Operating revenues:
S 945,6$6 930,.'.39
Moorage
Wharfage 1 17,895 136,512
Boat lift fees 173,301 202.374
Power sab :s 142,343 164,U44
Storage 64,916 64,160
Rentals and leases 282.972 326.380
Miscellaneous 93,888 79.359
Total operating revenues 1,821.001 1,903,068
Operating expenses:
391,113 377,59$
Salaries
Emplovec benefits 185,806 168,492
Purchased services 253.455 211,364
Power for resale 113,086 112,988
Supplies and maintenance 137,855 140,678
Administration and general 438,321 415383
Total operating expenses 1,519,676 1.426,703
Larnings from operations before depreciation 301,35 476,365
Depreciation 1.304.608 1.273,627
Loss from operations 1.0( 03,253) 797.26)
Nonoperaung rexenues(expenses)
Gain on sale of properly 638.828
Investment income 13,582 14.336
Interest expense 221.317) 255.635)
Other revenues 48,078
Other expenses 4,8371 50,866)
Net rnonoperanngrc ,. critics tcxpenses) 426.256 244,097)
Loss before operating transfers 577,027) 1,041,349)
Operating transfers:
From other funds 1,295,710
To other funds 248.586) 137,190)
Net operating transfers 1,047,124 137,190
Net earnings (loss) 470,097 1,178,539)
Amortization of contributed capital 1,109.173 1,064,671
Increase (decrease) to retained earnings 1,579,270 93,868)
Retained camings at beginning of year 871,011 969,734
Residual equity transfers to other funds 4,855)
Retained earnings at end of year 5 2,450.281 871.011
98
i
I
t
CITY OF SEWARD
Harbor Enterprise Fund
Statement of Cash Flows
Year Ended June 30, 1998
with Comparative Amounts for 1997
Cash flows from operating activities:
Loss from operations,
Adjustments to reconcile loss from operations to net cash
flows from operating activities:
Depreciation
Other nonoperating revenues (expense)
Decrease in allowance for doubtful receivables
Decrease in assets - receivables
Increase (decrease) in liabilities:
Accounts payable
Accrued annual leave
Other accrued liabilities
Due to other funds
Deferred revenue
Retirement incentive program payable
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Operating transfers from other funds
Operating transfers to other funds
Residual equity transfers to other funds
Decrease in advances from other funds
Interest on central treasury borrowings
Receipts on loan to Alaska Railroad Corporation
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities:
Principal payments on long -term debt
Interest payments on long -term debt
Acquisition of property, plant and equipment
Proceeds from safe of property
Contributed capital
Net cash flows from capital and related financing activities
Cash flows from investing activities - investment income received
Net increase in cash and investments
Cash and investments at beginning of year
Cash and investments at end of year
99
1228 1282
1,003,283) (797,262)
1,304,608 1,273,627
4,837) 2,788)
19,015 52,825)
19,880 113,804
16,265 4,771)
6,589) 13,830)
12,426) 23,594)
1,740,333) 311,651
10,433 92,692)
36,951
1,360,316 711,320
1,295,710 -
248,586) (137,190)
4,855)
18,521) (17,402)
69,059) (90,410)
33,690
959,544 216,167
174,408) (161,172)
137,789) (150,525)
29,316) (391,939)
725,000 -
3,703 194,147
387,190 50( 9,489}
13,582 14,336
240 200
200 200
CITY OF SEWARD
Harbor Enterprise Fund
Combining Schedule of Harbor Capital Projects
Year Ended .tune 30, 1998
ARRC Harbor
Harbor Dredging Harbor Plaza
Fxpgasion Reimbursement Electric Renovation L=15
Funding sources:
S 604 3,099 3,703
State grants
Harbor funds 3.500 4,837 60 519 8.916
Total funding sources 3,500 4,837
X664
3.618 12,619
Expenditures:
Salaries and employee benefits 604 104 708
Contracted services 3,500 4,837 3,1$5 11,522
Other services and charges 50 329 389
Total expenditures 3.500 4,837 564 3,618
CITY OF SEWARD
Parking Revenue Enterprise Fund
Balance Sheet
June 30, 1998
with Comparative Amounts for 1997
Current assets:
Cash and investments
Accounts receivable
Total current assets
Current liabilities:
Accounts }payable
Due to other funds
Total current liabilities
Retained earnings - unreserved
IN
moon,
57,593 -
12,391 13,239
S 69,984 13,239
34,395 -
2,038
34,395 2,038
35,589 11,201
S 69,984 13,239
CITY OF SEWARD
Parking Revenue Enterprise Fund
Statement of Revenues, Expenses,
and Changes in Retained Earnings (Deficit)
Year Ended June 30, 1998
with Comparative Amounts for 1997
Operating revenues:
Parking tickets
Parking commissions
Total operating revenues
Operating expenses:
Salaries and employee benefits
Contracted services
Supplies and maintenance
Administration and general
Total operating expenses
Earnings from operations
Nonoperating revenues (expenses):
Investment income
Interest expense
Net nonoperating revenues (expenses)
Net earnings
Retained earnings (deficit) at beginning of year
Retained earnings at end of year
102
Fx1lihit J -19
IMENT"A
5,440
67,585 24,411
67,585 29,851
5,400
34,982
3,371 1,263
5,678 5,575
44,031 12,238
23,554 17,613
834 -
453)
834 (453)
24,388 17,160
11,201 (5,9 5
35,589 11,201
i
CITY OF SEWARD
Parking Revenue Enterprise Fund
Statement of Cash Flows
Year Ended June 30, 1998
with Comparative Amounts for 1997
Cash flows from noncapital financing activities - interest expense
1 Cash flows from investing activities - investment income received
Net increase in cash and investments
Cash and investments at beginning of year
Cash and investments at end of year
103
ENhihit J -20
122$ 1221
S 23,554 17,613
848 11,709)
Cash flows from operating activities:
Earnings from operations
2,038}
Adjustments to reconcile earnings from operations
56,759
to net cash flows from operating activities:
Increase) decrease in assets - accounts receivable
Increase (decrease) in liabilities:
Accounts payable
Due to other funds
Net cash flows from operating activities
Cash flows from noncapital financing activities - interest expense
1 Cash flows from investing activities - investment income received
Net increase in cash and investments
Cash and investments at beginning of year
Cash and investments at end of year
103
ENhihit J -20
122$ 1221
S 23,554 17,613
848 11,709)
34,395 479)
2,038} 4,972
56,759 453
453)
834 -
57,593 -
S 57,593
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i
104
1
INTERNAL SERVICE FUND
The Internal Service Fund is used to account for goods and services
provided on a cost - reimbursement basis, by one City department to other
City departments, and consists of the Motor Pool which accounts for the
acquisition of vehicles and mobile equipment which are then leased to the
various departments of the City.
1.1
t
CITY OF SEWARD
Motor Pool Internal Service Fund
Balance Sheet
June 30, 1998
with Comparative Amounts for 1997
Assel$
Current assets:
Cash and investments
Prepaid expenses
Total current assets
Equipment and vehicles
Less accumulated depreciation
Net equipment and vehicles
Liabilities:
Current liabilities:
Accounts payable
Current portion of capital lease obligations
Total current liabilities
Long -term debt - capital lease obligations, excluding
current portion
Total liabilities
S 302,346 218,793
2,242
302,346 221,035
1,059,062 1,059,062
433,296) 320.110
625,766 738,952
S 928,112 959 987
6,282 -
82,490 77,985
88,772 77,985
311,628 394,117
400.400 472.102
402,745 402,745
4,865) (1,622)
397,880 401,123
129,832 86,762
527,712 487,885
S 928,112 959,987
Fund equity:
Contributed capital
Less accumulated amortization
Net contributed capital
Retained earnings - unreserved
tTotal fund equity
105
S 302,346 218,793
2,242
302,346 221,035
1,059,062 1,059,062
433,296) 320.110
625,766 738,952
S 928,112 959 987
6,282 -
82,490 77,985
88,772 77,985
311,628 394,117
400.400 472.102
402,745 402,745
4,865) (1,622)
397,880 401,123
129,832 86,762
527,712 487,885
S 928,112 959,987
CITY OF SEWARD
Motor fool Internal Service Fund
Statement of Revenues, Expenses,
and Changes in Retained Earnings
Year Ended June 30, 1998
with Comparative Amounts for 1997
Nonoperating revenues (expenses):
Investment income 15,307 9,364
24
Interest expense ,
305 (21,600
Net nonoperating revenues (expenses)
8,998 12.236
Eamings before operating transfers 39,827 19,312
Operating transfers to other funds - 9,865
Net earnings 39,827 9,447
Amortization of contributed capital 3,243 1,622
Increase in retained earnings 43,070 11,069
Retained earnings at beginning of year 86,762 75,693
Retained earnings at end of year $
129,832 86,762
106
1228 1 I
Operating revenues - vehicle rental
S 162,011 136,235
Operating expenses - depreciation 113,186 104,687
Earnings from operations 48,825 31,548
Nonoperating revenues (expenses):
Investment income 15,307 9,364
24
Interest expense ,
305 (21,600
Net nonoperating revenues (expenses)
8,998 12.236
Eamings before operating transfers 39,827 19,312
Operating transfers to other funds - 9,865
Net earnings 39,827 9,447
Amortization of contributed capital 3,243 1,622
Increase in retained earnings 43,070 11,069
Retained earnings at beginning of year 86,762 75,693
Retained earnings at end of year $
129,832 86,762
106
Im im
S 48,825 31,548
113,186 104,687
2,242 (2,242)
6,282 -
170,535 133,993
77,984) (58,627)
24,305) (21,600)
146,452)
9,865)
110,547
10 2,289) (125,997
15,307 9,364
83,553 17,360
218,793 201,433
S 302,346 218,793
309,730
CITY OF SEWARD
Cash flows from operating activities:
Earnings from operations.
Motor Pool Internal Service Fund
Adjustments to reconcile eamings from operations
Statement of Cash Flows
to net cash flows from operating activities:
Year Ended June 30, 1998
with Comparative Amounts for 1997
Im im
S 48,825 31,548
113,186 104,687
2,242 (2,242)
6,282 -
170,535 133,993
77,984) (58,627)
24,305) (21,600)
146,452)
9,865)
110,547
10 2,289) (125,997
15,307 9,364
83,553 17,360
218,793 201,433
S 302,346 218,793
309,730
1
Cash flows from operating activities:
Earnings from operations.
Adjustments to reconcile eamings from operations
to net cash flows from operating activities:
Depreciation
Increase) decrease in assets - prepaid expenses
Increase in liabilities - accounts payable
Net cash flows from operating activities
Cash flows from capital and related financing activities:
Principal payments on long -term debt
Interest payments on long -term debt
Acquisition of equipment and vehicles
Operating transfers to other funds
Contributed capital
Net cash flows from capital and
related financing activities
Cash flows from investing activities -
investment income received
Net increase in cash and investments
Cash and investments at beginning of year
Cash and investments at end of year
Noncash capital and related financing activities -
equipment acquired by capital lease
1
107
i
Im im
S 48,825 31,548
113,186 104,687
2,242 (2,242)
6,282 -
170,535 133,993
77,984) (58,627)
24,305) (21,600)
146,452)
9,865)
110,547
10 2,289) (125,997
15,307 9,364
83,553 17,360
218,793 201,433
S 302,346 218,793
309,730
1
1
1
1
THIS PAGE LEFT BLANK INTENTIONALLY
1
1
1
1
1
108
FIDUCIARY FUND
The City utilizes agency funds, which are a category of Fiduciary Funds. Agency funds
are used to account for assets held by the City in an agent capacity for other funds,
governments, or individuals.
i
t
CITY OF SEWARD
Teen Council Agency Fund
Balance Sheet
June 30, 1998
with Comparative Amounts for 1997
1 Assets
Cash and investments
Liabilities
Accounts payable
Due to Teen Council
1
1
1
e
109
S 2,239 5,449
312 -
1,927 5,449
2,239 5,449
Cash and investments
Accounts payable
Due to Teen Council
CITY OF SEWARD
Teen Council Agency fund
Statement of Changes in Assets and Liabilities
Year Ended June 30, 1998
Balance at Balance at
July 1- 1227 Additions Deletion line 30, 1998
5,449 10,665 13,875 2,239
312 - 312
5,449 10,353 13,875 1,927
5,449 10,665 13,875 2.239
110
I
GENERAL FIXED ASSET ACCOUNT GROUF
The General Fixed Asset Account Group is established to account for the
City's sizeable investment in fixed assets, which are tangible assets of
significant value, having a useful life of more than one year. No
depreciation is computed on general fixed assets. This account group also
enables the City to maintain custodial responsibility for the assets.
The investment by Enterprise Funds and the Internal Service Fund in
fixed assets is accounted for in the Proprietary Fund Type.
Ll
I• CITY OF SEWARD
General Fixed Assets Account Group
Schedule of General Fixed Assets by Sources
June 30, 1998
with Comparative Amounts for 1997
General fixed assets:
Land and land rights
Buildings
Improvements other than buildings
Equipment
Construction in progress
Investment in general fixed assets:
Prior year data
Capital Project Funds
General Fund
111
L`I'y
3,622,374 3,622,374
6,139,715 ' 8,300,866
8,556,362 8,556,362
1,717,771 1,689,968
61,463,726 42,669,611
S 81,499,948 64,839,181
1,270,315
76,660,029 57,827,700
4,839,919 5,741,166
S 81,499.948 64,839,181
CITY OF SEWARD
General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets
Year Elided June 30, 1998
Exhibit M -2 '
112
Balance at Balance at
July 1. 1997 Additions Deletions June 30. 1998
Land and land rights 3,622,374 3,622,374
Buildings 8,300,866 43,128 2,204,279 6,139,715
improvements other than buildings 8,556,362 8,556,362
Equipment 1,689,968 27,803 1,717,771
Construction in progress 42,669,611 18,811,833 17,718 61,463,726
S 64,839,181 18,882,764 2,221,997 81,499,948
112
CITY OF SEWARD
Exhibit M -3
General Fixed Assets Account Group
Schedule of General Fixed Assets by Function and Activity
June 30, 1998
Land Improve -
and ments
Land
Bi&bU Buildings
Other than
uiidingS Equipment IQl.
General government:
51,424 51,424
City Council /Mayor
City manager
5,684 5,684
City clerk
10,613 10,613
Finance
186,490 186.490
Community development 5,860 5,860
Municipal building 2,182,362 2,661 2,185,023
Historic railroad depot 130.000 130,000
8,056,944
General services 8,005,937 51,007
Community and Senior Center 920,709 920,709
Nondepartmental 3-622-374
h
Total general government 22 3.233.071 8-005-937 313.73 15'675.121
Pubhc safety:
161,790 179,508
Police 17,71$
Jail
12,562 12,562
Animal control 156,720 156,720
Fire 921,338 405,022 1,326,360
Seward Volunteer Ambulance Corp 61.614 61,614
Total public safety 1.095.776 640.988 1.736.764
Public works:
Streets 116,945 572,188 689,133
Building inspector
2,600 2,600
City shop 771 •g} 21.123 792,946
Total public works 888.768 595- 91.1 1- 484_674
Parks and recreation 284,909 550,425 113,233 948,567
Library 637.191 519M 691,091
Dotal general fixed assets allocated
to functions S 3.622,374 6,139,715 8.556,362 1,717,771 20,036,222
1
Construction m progress
61,463,726
1 Total general fixed assets S 81,499,948
1
113
CITY OF SEWARD
General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets by Function and Activity
Year Ended June 30, 1998
General Fixed General Fixed
Assets at Assets at
FjAnrtinn and Activity July 1- 1997 AdditiUD5 DeletigW. June 30..1998
General government:
City Council /Mayor
City manager
City clerk
Finance
Community development
Municipal building
Historic railroad depot
General services
Community and Senior Center
Nondepartmental
Total general government
Public safety:
Police
Jail
Animal control
Fire
Seward Volunteer Ambulance Corp
Total public safety
Public works:
Streets
Building inspector
City shop
Total public works
Parks and recreation
Library
Construction in progress
51,422
2,548 3,136
10,613
179,703 6,787
5,860
2,164,530 20,495
130,000
10,261,223
920,709
3,622,374
17,348,982 30,418
51,422
5,684
10,613
186,490
5,860
2,185,025
130,000
2,204,279 8,056,944
920,709
3.622,374
2,204,279 15,175.121
161,790 17,718 179,508
12,562 12,562
156,720 156,720
1,326,360 1,326,360
61,614 61,614
1,719,046 17,718 1,736,764
674,434 14,699 689,133
2,600 2,600
789,766 3,180 792,946
1,466,800 1 7,879 1,484,679
948,567 948,567
686,175 4,916 691,091
42,669,611 18,811,833 17,718 61,463,726
8 64,839,181 18,882,764 2,221,997 81.499,948
114
I
GENERAL LONG -TERM DEBT AccOUNT GROUP
t The General Long -Term Debt Account Group records the unmatured
principal of long -term general obligation bonds and the long -term portion
of the accrued annual leave and accrued retirement payable from general
revenues and backed by the full faith and credit of the City.
General Long -Term Debt Payable
Exhibit N -1
Accrued annual leave 194,026
CITY OF SEWARD
1990 bonds payable
General Long -Term Debt Account Group
270,000
1987 bonds payable
Schedule of General Long -Term Debt
20,297
1993 refunding bonds payable for the 1987 Series A
June 30, 1998
342,410
with Comparative Amounts for 1997
1,430,000
Amount, Available and to be Provided for the
7,500,000
1!aymeni of General Long-TCrrn Debt 1998 1441
Amount available in Debt Service Fund $ 242,332 I22,284
Amount to be provided:
Accrued annual leave 194,026 185,324
Bonds payable 9,347,067 9,562,707
Retirement incentive program payable 43,810
Seward General Hospital PERS liability 960,286 960,286
Total amount to be provided 10,545,189 10,708,317
10,787,521 10,830,601
General Long -Term Debt Payable
Accrued annual leave 194,026 185,324
1990 bonds payable 210,000 270,000
1987 bonds payable 20,297
1993 refunding bonds payable for the 1987 Series A 337,115 342,410
1993 refunding bonds payable for the 1990 Series A 1,420,000 1,430,000
1996 Hospital bonds 7,500,000 7,500,000
Retirement incentive program payable 43,810
Seward General Hospital PERS liability 1,082,570 1,082,570
1 $ 10,787,521 10,830,601
THIS PAGE LEFT BLANK INTENTIONALLY
PART III
STATISTICAL SECTION
CITY OF SEWARD
Statistical Tables
Statistical tables give report users a better historical perspective and assist in assessing current
financial status and trends. Statistical data is generally presented for ten fiscal years. The
following statistical tables are included:
Assessed and Estimated Actual Value of Taxable Property
Property Tax Rates — Direct and Overlapping Governments
Special Property Assessment Collections
Ratio of Net General Obligation Bonded Debt To Assessed Value
And Net General Obligation Bonded Debt Per Capita
Legal Debt Margin
Computation of Direct And Overlapping Bonded Debt
Ratio of Annual Debt Service Expenditures For General Obligation
Debt to Total General Fund Expenditures
General Fund Revenue By' Source
General Government Tax Revenues By Source
General Fund Expenditures By Function
tPrincipal
And CollectionsPropertyTaxLevies
Assessed and Estimated Actual Value of Taxable Property
Property Tax Rates — Direct and Overlapping Governments
Special Property Assessment Collections
Ratio of Net General Obligation Bonded Debt To Assessed Value
And Net General Obligation Bonded Debt Per Capita
Legal Debt Margin
Computation of Direct And Overlapping Bonded Debt
Ratio of Annual Debt Service Expenditures For General Obligation
Debt to Total General Fund Expenditures
Table 1
Table 1 A
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 8A
Table 9
Table 10
Table 11
Table 12
Table 13
Revenue Bond Coverage
Property Value, Construction And Bank Deposits
tPrincipal Taxpayers
Miscellaneous Statistics
t117
Table 1
Table 1 A
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 8A
Table 9
Table 10
Table 11
Table 12
Table 13
Table 1
CITY OF SEWARD
General Fund Revenues By Source
Last Ten Fiscal Years
Property Lkenm inter- Cbarges Fines
Fiscal Assess- and govern- for and
AM Taxes moo enWts entw .,m 1_ Jnt>ri mi5s,_ Total
1989 1,896,394 22,558 132,059 704,397 1,300,243 26.729 294,843 38,071 4,415,294
1990 2,312,297 35,470 77,9200 903,879 1,357,203 15,539 330,434 161,314 5,194,056
1991 2,293,728 230,546 69,195 1,046,659 2,025.766 13,058 410,593 95,077 6,184,622
1992 2,627,050 6,505 74,005 913,137 1,879,663 18,158 245,872 124,466 5,888,856
1993 2,509,708 32,573 23,736 983,759 2,425,012 41,892 236,986 47,862 6,301,528
1994 2,882,005 19,795 33,132 903,835 2,104,588 35,230 102,824 36,807 6,118,216
1995 3,081,177 2,241 61,073 789,157 1,760,860 49,289 221,832 39,340 6,004,969
1996 2,923,340 524 119,982 909,521 1,595,223 26.945 219.514 106,126 5.901,175
1997 3,072,913 1,871 200,964 1,099,869 1,662,854 12,383 280,363 50,079 6,381,294
1998 3.293,763 0 115,106 1,105,212 1,540.141 14,495 261,974 147,861 6,478,552
1
118 t
1
I&lc lA
CITY OF S EWARD
General Government Tax Revenues By Source
Last Ten Fiscal Years
tPayment
Fiscal Property Sales In Lieu Bed
of Tax _ Tax (1) Other 2) Total
1989 452,3I9 918,470 525,605 - 1,896,394
32,737 2,312,2971990456,143 1,193,900 629,5I7 ---
1991 409,663 1,190,645 679,292 --- 14,128
46,259
2,293,728
2,627,0501992619,566 1,268,572 692,653 -
1993 515,286 1,286,358 681,615 --- 26,449
57,553
2,509,708
2,882,0051994468,880 1,484,355 864,922 6,295
1995 498,016 1,587,199 904,889 7,350 83,723
42,059
3,081,177
2,923,3401996514,568 1,619,606 693.626 53,461
1997 479,062 1,734,019 729,498 128,188 2,146 3,072,913
1998 518,788 1.820,230 799,978 148,211 6,556 3,293,763
1) In Fiscal Year 1994 and 1995, lodging assessment fee was based on $30 per room, per year.
Beginning Fiscal Year 1996, lodging assessment fee was replaced by 4% botellmotel room tax.
2) Represents tax - related penalties and interest, and harbor parking assessment fee (discontinued after FY96).
1
119
MY OF ,SEVYARD
General Fund Expenditures By Function
Last Ten Fiscal Years
Fiscal General Public Public Parks and Debt
IC Gover meat yawl W21162 Recreation Library 19UL
1989 1,716,034 1,461,813 541,753 353,199 115,917 49,051 4,237,767
1990 1,353,714 1,359,214 550,255 357,802 122,392 154,574 3,897,951
1991 1,488,855 1,584,821 608.287 449,119 154,870 362,260 4,648,212
1992 1,851,718 1.640,081 692,653 493,106 193,510 345,265 5,216,333
1993 1,779,085 1,682,176 689,209 471,045 184,274 367,509 5,173,298
1994 1,542,179 1,782,396 722,202 443,661 200,553 343,702 5,034,693
1995 1,567,287 1,835,194 801,753 430,112 190,517 282.748 5,107,611
1996 1,485,903 1,860,349 791,868 508,467 218,175 270,201 5,134,963
1997 1,972,584 1,919,233 790,386 632,389 228,894 220,816 5,764,302
1998 1,960,687 1,876,870 831,248 609,001 234,033 210,868 5,722,707
120
Table 3
CITY OF SEWARD
Property Tax Levies And Collections
Last Ten Fiscal Years
Roth of
Total 'rax Delinquent
Total Current Permt Delinquent ' Total Collections Outstanding Taxes As
Fiscal Tax Tax of IA", Tax Tax - i "As A % Delinquent A % Gf
I= Jew Collections Collected,.". colled* Of L&WV Taxes_ Yy
1989 456,600 388,691 85.1% 37,074 432,824 94.8;6 100,578 22.0%
1990 418,395 387,531 92.6% 68,612 487,007 116.4% 48,507 11.6%
1991 463,743 413,850 89.2% - 5,731 419,581 90.5% 61.460 13.3%
1992 489,226 447,123 91.4% 22,471 469.594 96.0% 76,962 15.7%
1993 498,366 470,322 94.4% 31,983 502,305 100.8% 67,164 13.5%
1994 496,933 434,736 87.5% 29,171 463,907 93.4% 98,709 19.9%
1995 546.115 469,274 859% 99,191 568,465 104.1% 76,237 14.0%
1996 505,034 447,110 88.5% 66,044 513,153 101.6% 68,253 13.5%
1997 489,187 438,512 89.6% 2,294 440,807 90.1% 83,389 17.1%
1998 495,052 466,528 94.2% 13.791 480,319 97.0% 60,601 12.2%
Source: Kenai Peninsula Borough
1
1
121
Table 4
Source: "Alaska Taxable ", State of Alaska I
122 1
CITY OF SEWA"
Assessed And Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Real Property Personal Property . _. ... Total Property
Ratio of Total
Estimated Estimated Estimated Assessed Value'
Fiscal Assessed Actual Assessed Actual Assessed Actual To Total Est.
yjaL Value __ Value Value Value Value Actual Value
1989 93,279,802 104,334,000 56,450,349 55,976,000 149,730,151 160,310,000 93.40%
1990. 8815081166 98,794,000
1
28,540,373 40,833,200 117,048,539 139,627,200 83.83%
1991 97,193,437 100,612,800 53,601,900 64,419,000 150,795,337 165,031,800 91.37%
1992 88,464,566 100,667,900 52,574,761 68,929,200 141,039,327 169,597,100 83.16%
1993 92,122,180 98,261,300 50,038,979 66,112,200 142,161,159 164,383,500 86.48%
1994 102,022,980 111.378,100 53,373,128 69,439,400 155,396,108 180,817,500 85.94%
1995 103,330,330 111,294,400 75,604,139 94,472,100 178,934,469 205,766,500 86.96%
1996 105,272,150 113,853,300 58,875,732 77,447,000 164,147,882 191,300,300 85.81%
1997 108,318,979 117,443.100 50,476,044 70,537,400 158.795,023 187,980,500 94.47%
19198 106,196,750 117,506,400 49,253,008 67,755,600 115,449,758 185,262,000 83.91%
Source: "Alaska Taxable ", State of Alaska I
122 1
CITY OF SEWARD
Property Tax Rates
Direct and Overlapping Govermnents
Last Ten Fiscal Years
Per $1,000 of Assessed Value)
Fiscai
ICK its TbtaL_
1989 3.00 5.75 8.75
1990 3.00 5.75 8.75
1991 3.00 5.75 8.75
1992 3.00 7.55 10.55
1993 3.00 8.55 11.55
1994 3.00 8.55 11.55
1995 3.00 8.62 11.62
1996 3.00 8.62 11.62
1997 3.00 8.30 11.30
1998 3.12 8.38 11.50
Source: City of Seward
Kenai Peninsula Borough
123
Fisca
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
CITY OF SEWARD
Special Property Assessment Collections
Last Ten Fiscal Years
Current Current
Assessments,.,..-
Due -
Assessment
Colte tions
50,315 22,558
56,talg- 28,731
28,548 111,719
26,190 6,505
27,618 32,573
27,618 19,795
21,759 2,241
18,368 524
0 1,871
0 0
124
Ratio of Total
Collections To
Amount Due
Outstanding
AmMments
44.83% 376,358
50.73% 361,919
391.34% 250,200
24.84% 263,978
117.94% 249,385
71-67% 265,103
10.30% 285,889
2.90% 272,190
100.00% 241,660
0.00% 241,660
i
Table 7
CITY OF SEWARD
Ratio of Net General Obligation Bonded Debt
To Assessed Value Aud Net General Obligation Bonded Debt Per Capita
Last Ten Fiscal Years
0.30%
1
1.91% 791
1.48% 824
1.57%
1989 2,829 149,730
Gross Debt Ratio of Net Net
2,829 117,049
Bonded Payable from Net Bonded Debt Bonded
Fiscal Assessed Debt Enterprise Bonded to Assessed Debt Per
6,09%
Year- PoRWation li Value (2)_" Q)*_ Revenues* Debt• Value Capita _
0.30%
1
1.91% 791
1.48% 824
1.57%
1989 2,829 149,730 10,044 9,594 450
2,829 117,049 11,444 9,206 2,238
6.02%
1990
6,09% 3,157
1991 2,699 150,795 11,021 8,796 2,225
2,806 141,039 10,563 8,351 2,2121992
1993 2,704 142,161 10,039 7,886 2,153
1994 2,704 155,396 10,249 7,930 2,319
1995 2,732 178,934 9,549 7,310 2,239
1996 3,034 164,148 8,788 6,636 2,152
t
1997 2,914 158,795 15,600 6,037 9,563
1998 2,999 155,450 14,865 5,398 9,467
1
Amounts expressed in thousands.
1) Annual State census
2) From table 4
3) Amount does not include revenue bonds
Source: State of Alaska
Kenai Peninsula Borough
1
1
125
0.30% 159
1.91% 791
1.48% 824
1.57% 788
1.51% 796
1.49% 858
1.25% 819
1.31% 709
6.02% 3,282
6,09% 3,157
17
Table 8 '
CITY OF SI WARD
Legal Debt Margin '
June 30, 1998
No debt limit mandated by law. '
1
1
126
r
CITY OF SEWARD
Computation of Direct And Overlapping Bonded Debt
General Obligation Bonds
June 30, 1998
Direct:
City of Seward
Overlapping:
Kenai Peninsula Borough
Total
Net General
Obligation
Bonded Debt
Out d dlne
9,467,115 (1)
IWO
Percentage Amount
Applicable To Applicable To
City of Seward City of Seward
100.00% $9,467,115
4.59% (2) 1.746,495
11
1) Excluding general obligation bonds reported in the Enterprise Funds.
2) Based upon the ratio of City of Seward assessed value (real and personal property = $155,449,758) to total assessed
value of the Kenai Peninsula Borough ($3,388,474,600). Source: "Alaska Taxable ", State of Alaska.
3) Source: Kenai Peninsula Borough Fiscal Year 1998 Budget.
127
Table 9 ,
CITY OF SEWARD
Ratio of Annual Debt Service Expenditures
For General Obligation Debt (i)
to Total General Fund Expenditures
Last Ten Fiscal Years
1) General obligation debt reported in the enterprise, internal service and capital project funds, with government
commitment, have been excluded.
2) Total General Expenditures includes General Fund and Debt Service Fund.
1
1
L
128 1
Ratio of
Total Total Debt Service to
Fiscal
Year PdncipW Interest
Debt
Service (1) ExRodktures
General
M
General
Ezp=dotur
1989 9,233 39,818 49,051 4,237,767 1.16%
1990 79,757 74,817 154,574 4,416,425 3.50%
1991 129,890 232,370 362,260 4,648,212 7.79%
1992 143,563 201,701 345,265 5,216,333 6.62%
1993 180,448 187,061 367,509 5,173,298 7.10`Xn
1994 199,898 143,804 343,702 5,034,693 6.83%
1995 143,511 139,237 282,748 5,107,611 5.54%
1996 139,216 130,985 270,201 5,134,963 5.26%
1997 99,187 121,629 220,816 5,764,302 3.83%
1998 95,593 182,913 278,506 5,790,345 4.81%
1) General obligation debt reported in the enterprise, internal service and capital project funds, with government
commitment, have been excluded.
2) Total General Expenditures includes General Fund and Debt Service Fund.
1
1
L
128 1
4
Table 10
CITY OF SEWARD
Revenue Bond Coverage
Electric Enterprise Fund
Last Ten Fiscal Years (S)
Net Revenue Debt Service Wrmwda (3)
Fiscal Grass Operating Available for
yet:_ RevenuesM EiRcumM UM Service Edadad 1ntid Total Coverage (4)
1995 $5,927,945 $3,538,065 $2,389,880
1996 5,830,903 3,624,001 2,206,902
1997 5,955,699 3,604,036 2,351,663
1998 6,428,124 4,064,418 2,363,706
184,435 5184,435 11.97
184,435 184,435 12.75
50,000 184,435 234,435 10.08
1) Total revenues, including interest.
2) Total operating expenses exclusive of depreciation and payment in lieu of taxes.
3) Includes principal and interest of revenue bonds only. Excludes general obligation bonds reported in the Electric
Enterprise Fund.
4) Revenue bond agreement requires Net Revenue Available for Debt Service be at least 1.30 times the amount
of the total annual debt service requirement.
5) No Electric Enterprise Fund revenue bonds from 1989 -1994.
1
1
1
9
CITY OF SEWARD
Property Value, Construction and Bank Deposits
Last Ten Fiscal Years
1) Estimated actual value from Table 4
Source: City of Seward - Building inspection Department
Local Batiks - First National Bank of Anchorage, National Bank of Alaska
Commercial Construction Residential Construction
Total Number Number
Fiscal Property of of Bank
fu Value (1) Permits Value Permits V UeggdU
1989 104,334,000 32 12,075,250 55 4,580,896 25,160,000
1990 98,794,000 29 3,681,516 27 679,100 28,444,000
1991 100,612,800 29 2,163,276 21 1,053,150 27,477,800
1992 100,667,900 21 842,685 20 620,425 32,518,000
1993 98,261,300 16 328,462 34 1,504,173 27,808,000
1994 111,378,100 20 3,120,673 24 384,400 28,409,000
1995 111,294,400 27 31,539,700 28 746,600 35,186,501
1996 113,853,300 16 8,076,000 31 1,093,800 36,572,000
1997 117,443,100 29 7,770,836 41 1,513,902 38,598,136
1998 117,506,400 24 2,095,035 34 1,493,675 43,350,000
1) Estimated actual value from Table 4
Source: City of Seward - Building inspection Department
Local Batiks - First National Bank of Anchorage, National Bank of Alaska
ITable 12
CITY OF SEWARD
Principal Taxpayers
June 30, 1998
1
Percent of
98 Total
Assessed Assessed
Typt of Business ValuatiQUU) Valuation (2)
Seward Fisheries /Icicle Seafoods Seafood Processing 6,709,963 4.3%
Suneel Alaska Corporation Coal Export 5,804,399 3.7%
Kenai Fjords Tours Ltd Partnership Boat Tours 3,969,375 2.66
New Seward Hotel /New Seward Saloon
Snowden, Brad and Bradley, Virginia Hotel /Saloon 2,750,027 1.8%
Breeze Inn Motel - Mindenbergs, Juris Motel /Restaurant 2,342,737 1.5%
Anderson Tug & Barge
Anderson, John C. III & Sharon Tug & Barge Service 2,312,306 1.5%
Seward Ships Chandlery/ Ship Repair /Convenience
Harbor Gateway Enterprises - Pruitt, James Store /Gas Station/Misc. 2,306,307 1.5%
Harbor Enterprises, Inc.
Lindsey, Dale & Carol Petroleum Products 1,795,230 1.2%
GTE Alaska, Inc. Telecommunications 1,729,701 1.1%
General Construction and
Afognak Logging Excavation 1,668,190 1.1%
1) Includes real and personal property. Source: Kenai Peninsula Borough - Assessing Deparunent
2) Total assessed valuation (real and personal property) is $155,449,759. Source: "Alaska Taxable ", State of Alaska.
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MY OF SEWARD
MISCELLANEOUS STATISTICS
June 30, 4998
Date of Incorporation June 1, 1912
Class Home Rule
Form of Government CouncwManager
Number of employees
Non- Exempt 64
Exempt 15
Area, Square Miles 22
Population 2.999
Qualified Voters 1,928
City of Seward facilities and services:
Miles of streets
Number of street lights
43.14
198
Building Permits Issued 58
Recreation and Culture:
Number of Parks 9
Number of Libraries 1
Number of Volumes
Fire Protection
29,049
Number of Stations 2
Number of Paid Firefighters and Officers 2
Number of Volunteers 29
Number of Calls Answered 142
Fire Rating (ISO) 419
Police Protection
Number of Stations 1
Number of Officers 9
Number of law violations:
Physical arrests 462
Traffic violations 254
Parking violations 87
Sewerage System:
Number of treatment plants 2
Number of service connections 831
Daily average treatment in gallons 870,000
Maximum daily capacity of treatment plant in gallons 1,200,000
Water System:
Number of service connections 858
Number of fire hydrants 185
Daily average consumption in gallons 1,300,000
Maximum daily capacity of plant in gallons 5,500,000
Electric Distribution System:
Number of service connections 2,185
Miles of distribution lines 55
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CITY OF SEWARD
MISCELLANEOUS STATISTICS
June 30, 1998
Miles of transmission lines 42
Number of sub- stations 3
Total number of kilowatt sales 50,803,212.
Harbor and Port Operations: '
Registered vessels 4,739
Number on waiting list for boat slips 381
Number of boat lifts f29
General cargo tonnage 42,422
Fish product tonnage 5,452
excludes Seward Fisheries, Inc. and Cook Inlet Fisheries, Inc.)
Petroleum (gallons) 2,591,840
Facilities and services not included in the reporting entity:
Education
Elementary School
Number of Students Enrolled 405
Number of Teachers Ig
Jr /Sr High School
Number of Students Enrolled 430
Number of Teachers 37
Alaska Vocational Technical Center
Number of Students Served Annually 1,733
Number of Teachers 32
Hospital
Providence Seward Medical Center:
Number of patient beds (6 primary care; 2 swing beds) 8
Number of employees:
Non - Exempt 38
Exempt g
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