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CITY OF SEWARD
COMPREHENSIVE SIX -MONTH
FINANCIAL REPORT
For the Six -Month Fiscal Period
Ended December 31, 1999
COMPREHENSIVE SIX -MONTH
FINANCIAL REPORT
OF THE
CITY OF SEWARD, ALASKA
1
For the Six -Month Fiscal Perilod Ended
December 31, 1999
Edgar Blatchford
MAYOR
W. Scott Janke
CITY MANAGER
Prepared by the
DEPARTMENT OF FINANCE
Rick L. Gifford, CGFM
DIRECTOR OF FINANCE & ADMINISTRATIVE SERVICES
Kristin M. Erchinger, CGFM
CONTROLLER
THIS PAGE LEFT BLANK INTENTIONALLY I
1
PART I
INTRODUCTORY SECTION
Table of Contents
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
List of Principal Officials
Organizational Chart
MY OF SEWARD
Comprehensive Six -month Financial Report
Table of Contents
PART I - INTRODUCTORY SECTION
Pa.
Table of Contents I•VI
Letter of Transmittal Vii -XIX
Certificate of Achievement for Excellence in Financial Reporting XX
List of Principal Officials XXI
Seward Citizens — Organizational Chart XXII
PART II - FINANCIAL SECTION
Exhibit Pa
IndeQendent Auditor's Report 1
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and Account Groups A -1 4 -5
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental
Fund Types B -1 6
Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - General Fund C -1 7
Combined Statement of Revenues, Expenses and Changes
in Retained Earnings - All Proprietary Fund Types D -1 9
Combined Statement of Cash Flows - All Proprietary
Fund Types E -1 10.11
Notes to General Purpose Financial Statements 13 -39
Additional Information
Combining, Individual Fund, and Account Group
Statements and Schedules:
General Fund:
Balance Sheet F -1 41
Statement of Revenues, Expenditures and
Changes in Fund Balance F -2 42
Statement of Revenues, Expenditures and
Changes in Fund Balance — Budget and Actual F -3 4349
1
CITY OF SEWARD
Comprehensive Six-month Financial Report
Table of Contents, continued
FINANCIAL SECTION, continued
Exhibit Paste
Additional Information continued
Combining, Individual Fund, and Account Group
Statements and Schedules, continued:
Special Revenue Funds:
Combining Balance Sheet G -1 54
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances G -2 55
Parks and Recreation:
Combining Balance Sheet G -3 56
Combining Statement of Revenues, Expenditures and
and Changes in Fund Balances G-4 57
Public Safety:
Combining Balance Sheet G -5 58
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances (Deficit) G -6 59
Other General Government:
Combining Balance Sheet G -7 60
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances G -8 61
Debt Service Fund:
Balance Sheet H -1 63
Statement of Revenues, Expenditures and Changes in
Fund Balance H -2 64
ll
w
CITY OF SEWARD
Comprehensive Six-month Financial Report
Table of Contents, continued
FINANCIAL SECTION, continued
Exhibit Page
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 I -2 69
Parks and Recreation:
Combining Balance Sheet I -3 70
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances (Deficit) 14 71
Public Safety:
Combining Balance Sheet I -5 72
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances I-6 73
Other General Government:
Combining Balance Sheet I -7 74
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances I -8 75
Public Library:
Balance Sheet 1 -9 76
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances I -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
1
III
CITY OF SEWARD
Comprehensive Six-month Financial Report
Table of Contents, continued
FINANCIAL SECTION, continued
Exhibit Page
Additional Information continued
Combining, Individual Fund, and Account Group
Statements and Schedules, continued:
Enterprise Funds, continued:
Electric:
Balance Sheet J4 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
Combining 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 1
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
Seward Marine Industrial Center:
Balance Sheet J -18 101
Statement of Revenues, Expenses and
Changes in Retained Earnings J -19 102
Statement of Cash Flows J -20 103
Parking Revenue:
Balance Sheet J -21 104
Statement of Revenues, Expenses and
Changes in Retained Earnings J -22 105
Statement of Cash Flows J -23 106
IV
CITY OF SEWARD
Comprehensive Six-month Financial Report
Table of Contents, continued
FINANCIAL SECTION, continued
Exhibit Pane
Additional Information. continued
Combining, individual Fund, and Account Group
Statements and Schedules, continued:
Motor Pool Internal Service Fund:
Balance Sheet K -1 107
Statement of Revenues, Expenses and
Changes in Retained Earnings K -2 108
Statement of Cash Flows K -3 109
Agency Funds:
Combining Balance Sheet L -1 111
Teen Council - Statement of Changes in Assets and
Liabilities L -2 112
AVTEC Contract — Statement of Changes in Assets and
Liabilities L -3 113
General Fixed Assets Account Group:
Schedule of General Fixed Assets by Sources M -1 115
Schedule of Changes in General Fixed Assets M -2 116
Schedule of General Fixed Assets
by Function and Activity M -3 117
Schedule of Changes in General Fixed Assets
by Function and Activity M4 118
General Long -Term Debt Account Group —
Schedule of General Long -Term Debt N -1 119
II 1
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V
CITY OF SEWARD
Comprehensive Six-month Financial Report ,
Table of Contents, continued
VI
PART III — STATISTICAL SECTION
Table 1 General Fund Revenues by Source 121
Table 1 A General Government Tax Revenues by Sources 122
Table 2 General Fund Expenditures by Function 123
Table 3 Property Tax Levies and Collections 124
Table 4 Assessed and Estimated Actual Value of Taxable Property 125
Table 5 Property Tax Rates — Direct and Overlapping Governments 126
Table 6 Special Property Assessment Collections 127
Table 7 Ratio of Net General Obligation Bonded Debt to Assessed Value
and Net General Obligation Bonded Debt Per Capita 128
Table 8 Legal Debt Margin 129
Table 8A Computation of Direct and Overlapping Bonded Debt 130
Table 9 Ratio of Six -month Debt Service Expenditures for General
Obligation Debt to Total General Fund Expenditures 131
Table 10 Revenue Bond Coverage 132
Table 1 i Property Value, Construction and Bank Deposits 133
Table 12 Principal Taxpayers 134
Table 13 Miscellaneous Statistics 135 -136
VI
CITY OF SEWARD • Main Office (907) 224 -4050
P.O. BOX 167 •
Police (907) 224 -3338
SEWARD. ALASKA 99664 -0167 '
Harbor (907) 224 -3138
Fire (907) 224 -3445
Fax (907) 224 -4038
1
March 17, 2000
To the Honorable Mayor, members of the City Council and the citizens of Seward:
The Comprehensive Six -Month Financial Report of the City of Seward, Alaska, for the six -month period ended
December 31,1999, 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.
On October 6, 1998, the voters of Seward approved changing the City's year -end from a fiscal period ending on June
30 to December 31. In accordance with this change, the City elected to provide a Comprehensive Financial Report
for the six -month period ended December 31, 1999.
The Comprehensive Six -Month 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.
The City is required to undergo an annual single audit in conformity with the provisions of the Slate of Alaska Single
Audit Regulation 2 AAC 45.010, the Single Audit Act of 1984, and the U.S. Office of Management and Budget Circular
1 A -133, "Audits of State, Local Governments, and Non - Profit Organizations." For the six -month period ended
December 31, 1999, the City was not required to undergo a federal or state single audit, since federal receipts were
below the required threshold for a single audit. However, information related to the single audit, including the schedule
of State financial assistance, findings and recommendations, and the auditor's report on the internal control structures
and compliance with applicable laws and regulations, are available in a separately issued report.
The Reportim Entity and Its Services
For financial reporting purposes, the reporting entity included in our comprehensive six -month 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
I 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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VII
Governmental Structuro, LoeW Economic Conditions and Outlook
The City was incorporated on June 1, 1912, and became a first -class City under the Alaska Statute's home rule
provisions upon the adoption of the City Charter by a referendum vote of the people on January 5, 1960. The form
of government established by the Charter is the Council- Manager plan. The Council exercises 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 following 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 3,010.
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.
Seward's citizens, and its physical assets, have created a much more diversified economy than exists in 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. The Alaska SeaLife Center (ASLC)began it's second year of
operations in 1999. The ASLC 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 ASLC drew
over 161,000 visitors in 1999. 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 designated as a National
Scenic Byway and 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.
Another major contributor to Seward's thriving local economy is Spring Creek Correctional Center, the State's first and
only maximum security prison which opened in 1988. The prison provides year -round employment to the enhance
the seasonal economy of the area. The City continues its lobbying efforts to expand the prison facility to relieve
overcrowding in the State's prison system. Another example of the City's efforts to increasejobs, 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. t
VIII
1 Maior Initiatives 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 govemment's commitment to promoting viable economic development, stable
employment, and a healthy quality of life for its citizens.
The small boat harbor in Seward is a cornerstone in the City's economy. While the City was the owner of all tide and
submerged lands underlying the harbor, the State of Alaska was the owner of the float system within the harbor. The
City operated the harbor under an agreement with the State which limited the ability of the City to make operational
decisions without approval of the State. The 19913 State Legislature authorized the City to take ownership of the small
boat harbor and provided the City with approximately $3.12 million for deferred maintenance of the float system. The
City acquired ownership of the small boat harbor from the State of Alaska in February, 1999. The $3.12 received from
the State of Alaska is being reinvested into the small boat harbor with a major renovation of the northern portion of the
float system in the small boat harbor.
The Council and administration have pursued a number of major programs and improvements, intended to meet
citizen's demands for services and to safeguard the environment, in conformity with applicable federal and state
standards. These programs include: cap itai repairs and improvements to Hoben Park, located adjacent to the Alaska
SeaLife Center to replace fencing, monuments and trees, and install a sidewalk; improvements to the campgrounds,
including improvements to comply with requirements of the ADA, and beautification of the waterfront campground and
park areas; a new and larger recreational vehicle sewer dump station to replace a smaller dump station that was
located in the congested harbor parking area; upgrading, repairing and constructing tot lots and playgrounds in the
City; Fire Department replaced approximately 85% of it's old fire hose with new fire hose; repair and install new
sections of sidewalks, curbs and gutters, and improve handicapped accessibility of sidewalks; constructed electric,
water, sewer and road improvements to a portion of the Forest Acres Subdivision as part of an assessment district;
a flood mitigation project to mitigate potential flood damage from the Resurrection River and Japanese Creek areas;
and preservation of historical records within the City.
The Electric Utility Enterprise continues to work on $1.6 million upgrade to the generation system at the Ft. Raymond
Substation which is estimated to be completed in the year 2000 with substantial funding being provided through a grant
from the State of Alaska for slightly more the $1 million. The Electric Utility also added electrical improvements through
Ian assessment district to the Marathon View II Subdivision.
Major Initiatives For the Future
The City Council approved a community-wide Strategic Plan during fiscal year 1999, for the purpose of developing
long -term and short -term goals to guide future decision- making into the year 2020. Town meetings provided the forum
for soliciting public input and prioritizing the needs of the community. The Council and administration then met to
develop long -term goals, five -year objectives, and annual management action plans, designed to move the community
forward to the year 2000 and beyond.
The calendar year 2000 budget included over $200,000 for street paving, roof repairs for the fire hall and a new city-
wide telephone system to replace the inadequate phone system currently being used.
The Harbor Enterprise continues to work with the Army Corps of Engineers to design and engineer the proposed
eastward expansion of the harbor basin. The existing harbor is over crowded and has approximately 350 vessels on
a waiting list for slip space. An eastward expansion is expected to accommodate approximately 360 additional vessels
and alleviate overcrowded conditions.
The Harbor Enterprise is currently in the design and engineering phase for the upgrade improvements to the small
boat harbor float system as a result of the City receiving approximately $3.12 million in deferred maintenance from the
State of Alaska when the City took ownership of the small boat harbor. The current plan upgrades as much of the float
IX
system as the funding allows starting with the north float systems and working south. Construction is expected to start
in the fall of 2000 and be completed by the spring of 2001 before the busy slimmer season starts.
The Water and Sewer Enterprise is adding a new water well at a cost of over $300,000 to meet the growing demands
for water in the City, is conducting an engineering study to provide water and sewer infrastructure to the remainder
of undeveloped property in the Forest Acres Subdivision and a new backup generator and building at an estimated
cost of $90,000 is planned for lift station Q.
With more than 100 cruise ships calling on the Port of Seward in 1999, and the 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 Alaska Railroad Corporation, the City and it's federal lobbyists successfully
secured funding for the expansion and renovation of the Alaska Railroad Dock. At this time, the federal government
has approved approximately $9.6 million in funding for construction of a new cargo bulkhead and complete renovation
of the existing dock and passenger terminal. The needs of the Alaska Marine Highway System are incorporated.
Construction is set to begin in the fall of 2000.
Community leaders continue to work with representatives from the State of Alaska and private enterprise to support
the coal terminal facility, expansion of the State's only long -term prison facility, and the construction of a multi- agency
facility to accommodate the needs of the National Park Service and U.S. Forest Service.
Financial Information ,
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 audit performed by the City's independent auditors, tests are made to determine the adequacy of the
internal control structure, as well as to determine that the City has complied with applicable laws and regulations. The
results of the City's audit for the six -month period ended December 31, 1999, provided no instances of material
weaknesses in the internal control structure or significant 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 Ibudgetarycontrolisachievedassuch. 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
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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 IegaHy 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 operating
budget, with appropriations lapsing at year end. The City maintains an encumbrance accounting system as one
technique of ensuring budgetary control.
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.
General Governmental Revenues
Revenues from general governmental functions (which includes General, Special Revenue, Debt Service and Capital
Project Funds) totaled $4,479,581 for the six -month period ended December 31, 1999. The amount of revenue from
major sources for the six -month period ended December 31, 1999 and the comparison to the FYI 999 revenues is
shown in the following tabulations:
Revenu r
Six
Months
1
2,255,326
73,715
928,786
925,721
10,748
134,087
151.198
4 47 581
Percent
of Total
50.3%
1.7
20.7
20.7
0.2
3.0
3.4
100.0%
Fiscal
Year
1999
3,584,389
144,003
1,344,510
1,475,581
17,347
254,085
271,856
230.256
7.322.027
IThe graph on the following page identifies the major sources of general government revenue:
Taxes
Licenses and permits
Intergovernmental revenue
Charges for services
Fines and bails
Land sales
Investment income
Miscellaneous revenue
Six
Months
1
2,255,326
73,715
928,786
925,721
10,748
134,087
151.198
4 47 581
Percent
of Total
50.3%
1.7
20.7
20.7
0.2
3.0
3.4
100.0%
Fiscal
Year
1999
3,584,389
144,003
1,344,510
1,475,581
17,347
254,085
271,856
230.256
7.322.027
IThe graph on the following page identifies the major sources of general government revenue:
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GENERAL GOVERNMENT REVENUES
General, Spacial Revenue, Capital Project and Debt Service Funds
Total Rwwn = $4A79,581
Ta =.3%
All 00W L3%
In1M0ov't Rw. 20.774
CMr for SwvW s 20.7%
For the six -month period ended December 31, 1999, overall tax revenues totaled $2,255,326 representing
approximately 50% of all general government revenues.
The Kenai Peninsula Borough bills and collects all property and sales taxes on behalf of the City. For the six -month
period ended December 31, 1999, general property tax revenues (which includes real and personal property tax)
produced $515,544. Of the $515,544 of general property tax revenues, $347,891 was real property taxes and
167,653 was personal property taxes. 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 the six -month period ended December 31, 1999 are based on 1999 property assessments.
Sales tax revenues totaled $1,197,288 for the six -month period ended December 31, 1999. However, 113 of the City's
sales tax revenues are transferred to the Hospital Debt Service Fund to satisfy debt service obligations on $7.5 million
in hospital bonds. Payments in lieu of tax (PILT) totaled $419,108. Based on an operating agreement between the
City and the Seward Association for the Advancement of Marine Science, the Alaska Seal-ife Center began
contributing PILT (based upon 3% of sales) in May 1998, which amounted to $41,710 for the six -month period ending
December 31, 1999. The remainder of PILT is paid by the Enterprise Funds whose PILT is based on 8% of operating
revenues. The 4% hotel /motel room tax brought in $122,248 for the six month period.
XII
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1 The following chart shows the distribution of the various categories of tax revenues:
SM" TO W.1%
TAX REVENUES
General Fund - $2,255,326
POV TM 2Lt%
NLT IM
PWMW= r*~a -1%
ftd Tax L^
Other govemmental -type revenues include license and permit fees, which totaled $73,715 for the six -month period
ended December 31, 1999. Of the total license and permit fees of $73,715, the major portion comes from building
permits at $33,398, from Department of Motor Vehicle commissions at $29,897 and from business license fees of
8,190.
Intergovernmental revenues, which represent more than 20% of all general government revenues, totaled $928,786
for the six -month period ended December 31, 1999. The majority of intergovernmental revenue is from State of Alaska
grants for special revenue projects and capital projects totaling $490,601. Approximately $185,535 is from the State
of Alaska for revenue sharing and safe communities program. Another $181,733 is received from the State of Alaska
for the jail contract.
Revenues from charges for services, which represents approximately 20.7% of all general government revenues,
totaled $925,721 for the six -month period ended December 31,1999. The majority of charges for services comes from
administrative fees charged to the enterprise fund operations (based on an indirect cost allocation plan) and capital
projects totaling $563,465 and from parks and recreation revenues totaling $260,860. The General Fund also
collected $50,033 in rents and leases.
Fines and bails totaled $10,748 for the six -month period ended December 31, 1999, miscellaneous revenues totaled
151,198 and investment income totaled $134,087 for the six -month period.
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General Govemment Expenditures I
Expenditures for general government purposes totaled $4,234,081 for the six -month period ended December 31,1999.
The amount of expenditures for major functions of the City are shown below for the six -month period ended December '
31, 1999 and for FY 1999:
4 234 0 1 10 7 052 277
The distribution of general government expenditures by function is represented in the following graph:
GENERAL GOVERNMENT EXPENDITURES
General, Special Revenue, Capital Project and Debt Service Funds
Total Expendttures m $4,234,0111
Peblk sally 2&v%
Gen? 00" 20.6%
PUbft wortra 11 A%
Debt 6ervke 13A%
P&R $A%
LJhrwy Ll%
Capita! Oubq 11.49E
Publk Service 6.09E
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Fiscal
Percent Year
Amount of Total 1999
General Government 866,317 20.4% 1,569,272
Public Safety 1,096,178 25.9 1,975,242
Public Works 490,459 11.6 863,536
Parks and Recreation 398,151 9.4 603,241
Library 117,556 2.8 234,882
Public Service 211,364 5.0 43,729
Capital Outlay 483,998 11.4 970,108
Debt Service 570.058 13,§ 792.267
4 234 0 1 10 7 052 277
The distribution of general government expenditures by function is represented in the following graph:
GENERAL GOVERNMENT EXPENDITURES
General, Special Revenue, Capital Project and Debt Service Funds
Total Expendttures m $4,234,0111
Peblk sally 2&v%
Gen? 00" 20.6%
PUbft wortra 11 A%
Debt 6ervke 13A%
P&R $A%
LJhrwy Ll%
Capita! Oubq 11.49E
Publk Service 6.09E
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11
The overall general government expenditures of $4,234,081 for the six -month period ended December 31, 1999
includes the General, Special Revenue, Debt Service and Capital Project Funds.
1
General Fund Expenditures
Expenditures in the General Fund totaled $3,054,373 forthe six -month period ended December 31,1999, not including
transfers to other funds. The General Fund expenditures were $324,625 lower than the approved budget. All major
expenditure functions were under budget, however, the engineer and utility manager department was over budget by
6,311 primarily due to salary allocations between departments for the City engineers. Contributions to civic
organizations were up significantly reflecting the $70,000 contribution given to the Seward Chamber of Commerce for
economic development within the City of Seward,
General Fund Balance
The General Fund fund balance totaled $3,613,262 at December 31, 1999, an increase of $35,789 from the June 30,
1999 fund balance of $3,577,473. The increase was primarily due to revenues higher than anticipated and expenditures
that were lower than budgeted. The General Fund received operating transfers from other funds in the amount of
455,460, transferred monies in the amount of $1,215,668 to other funds.
For the six -month period ended December 31, 1999, General Fund revenues exceeded budgeted projections by
124,204, for a total of $3,850,370, and actual expenditures were $324,625 less than budgeted, at $3,054,373. This
resulted in an overall excess of revenues over expenditures of $795,997. An analysis of the change in General Fund
fund balance is shown as follows:
Fund balance at July 1, 1999 3,577,473
Excess of revenues over expenditures 795,997
Operating transfers (to)/from other funds:
Special Revenue Funds:
Emergency Shelter Supplies 1,000)
DARE Program 534)
Capital Project Funds:
Capital Acquisition 105,732)
Firehose Replacement 7,393)
Library Automation 14,400)
Forest Acres Road 17,046)
Enterprise Funds:
Water and Sewer 76,840
Electric 317,500
Harbor 54,037
SMIC 7,083
1 SMIC 250,491)
Debt Service: 487 544
Net other financing sources (uses) 428,680)
Residual equity transfers to other funds:
Water and Sewer Enterprise Fund 63,528)
Motor Pool Internal Service Fund 18,000)
Harbor Enterprise Fund 250,000)
Total residual equity transfers 331.528}
Fund balance at December 31, 1999 3 613 262
XV
Ll
Debt Administration 1
At December 31, 1999, the City'> outstanding principal on bonded debt totals $16,125,000 (see pages 25 and 26 for
itemized detail). This amount includes $13,025,000 in general obligation bonds (backed by the full faith and credit of ,
the City), and $3,100,000 in revenue bonds. In the Figures below, the term '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 Moth 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
Amount Market Value) C ta
Net General Obligation Bonded Debt $8,867,400 5.17% 2,946
At December 31, 1999, the City has $13.025 million in outstanding general obligation bonds. Of this total, $4,157,600
are recorded in the Enterprise Funds which benefit from the proceeds of said bonds, and include the 1980 electric bond, '
1993 refunding of 1986 electric bond, and the 1987 Seward Marine Industrial Center bond.
employees vested in the State of Alaska Public Employees Retirement System at June 30, 1996. At December 31,
In addition, the City issued $3,225,000 in electric revenue bonds in 1995 to complete construction of the Transmission '
Line from Mile 3 to Mile 24. The first principal payment for the revenue bond 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 the six -month period ended December 31, 1999, income available for revenue bond debt service was.
1,454,908. Annualized income approximated $2,993,000; the debt service requirement was $275,248, resulting in
a ratio of10.9, well above the 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 December 31, 1999 are $734,807 and $19,671, 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 and entered into an agreement with
Providence Seward Medical Center to provide local medical services. The dissolution of the Hospital Enterprise Fund
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 December 31,
1999, this pension liability is estimated at $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 for the construction
of the new medical facility, with proceeds from 113 of the City's future sales tax revenues.
The City maintains several lease purchase agreements for the financing of a sand truck, motor grader, pumper truck, '
rescue truck, and a 250 -ton boat travelift. The lease agreements qualify as capital leases for accounting purposes
titles transfer at the end of the lease terms) and have therefore been recorded as capital leases. Machinery and
equipment lease payments are capitalized in the funds for which the equipment was purchased, with $856,546 in the
Enterprise Funds and $701,447 in the Motor Pool Internal Service Fund. 1
1
XVI '
I
Cash Manauement
The investment and collateral ization 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, facilitating the investment of combined funds to maximize
investment earnings. Earnings on these investments are allocated monthly to the funds supplying the resources for
investment.
Total City cash and investments at December 31, 1999 were as follows:
Cash on hand $ 11800
Deposits (39,331)
Investments 15.261.465
Total City cash and investments 15 223 934
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 six -month period was invested in short-term time deposits, repurchase agreements and
government agency securities. The amount of interest earned by governmental and proprietary funds in the six -month
period ended December 31, 1999, was $437,924.
IEnterprise Operations
Enterprise funds are used to account for operations that are financed and operated in a manner similar to private
1 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, port
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 end 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 include administrative expenses and payments in lieu of tax. Administrative
expenses are charged on the basis of the budget ordinance, and payments in lieu of tax are calculated based on 8%
of Enterprise Fund operating revenue.
For the six -month period ended December 31, 1999, operating revenues in the proprietary funds (including enterprise
funds and internal service funds) totaled $5,193,861. For the six -month period ended December 31, 1999, operating
revenues totaled $3,262,274 in the Electric Enterprise Fund, $775,207 in the Water and Sewer Enterprise Fund,
1 $
795,662 in the Harbor Enterprise Fund, $184,869 in the SMIC Enterprise Fund, $78,270 in the Parking Revenue
Enterprise Fund, and $97,559 in the Motor Pool Internal Service Fund.
Operating expenses (before depreciation) in the proprietary funds totaled $3,451,997 for the six -month period ended
December 31, 1999, with the Electric Enterprise Fund expenses totaling $2,208,190, the Water and Sewer Enterprise
XV[t
Fund expenses totaling $474,328, the Harbor Enterprise Fund expenses totaling $615,256, the SMIC Enterprise Fund
expenses totaling $120,716 and Parking Revenue Enterprise Fund expenses totaling $33,507.
Risk Management
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 December
31, 1999, the amount of fund balance designated for insurance reserves was $335,778. The LELP was established
by the JIA as a separate insurance pool for law enforcement professional liability, including jail liability.
Independent 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. was selected by the City Council, to perform the six -month audit for the period ended December 31, 1999.
The auditor's report on the general purpose financial statements is included in the financial section of this report. The
Icombining, individual fund and account group financial statements and schedules are presented for the purpose of
additional analysis,
Financial Reporting Award ,
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Seward for its Comprehensive Annual Financial Report ,
CAFR) for the fiscal year ended .tune 30, 1999. This is the sixth consecutive year that the City has received this
prestigious award. The Certificate of Achievement is a 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, with contents conforming 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. We believe our current Comprehensive Six -Month
Financial 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. I
XVIII
I
Acknowledaments
Preparation of the Comprehensive Six -Month 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,
W. Scott Jane Rick L. Gifford
City Manager Director of Finance and Administrative Services
1
1
1
1
XIX
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, 1998
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Gov mmment Rnance 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 fh=dal reporting.
cw= , President
OXW Y04; Z
Executive Director
Note: The City of Seward was awarded the Certificate of Achievement for Excellence in
Financial Reporting for the Fiscal Year Ended June 30, 1999. However, due to the change
to a new fiscal year end, and the fact that the current CAFR represents only a six -month
period, the City did not receive a copy of the Certificate in time to include in this publication.
0
W. Scott Janke City Manager
Tylan C. Schrock Assistant City Manager
Director of Finance and
Administrative Services
CITY OF SEWARD
Dave Calvert City Engineer and
LIST OF PRINCIPAL OFFICIALS
Utility Manager
Council Members
James Beckham
iEdgar Blatchford
Michael Chapman
Mayor
Stu Clark
David Squires
Vice Mayor
David Brossow
Parks & Recreation Director
Council Member
Patricia Linville Library Director
Michael Calhoon Council Member
Jerry King Council Member
Nathan Orr Council Member
Vanta Shafer Council Member
Adminiar -ation
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
Michael Chapman Chef of Police
David Squires Fire Chief
Karin J. Sturdy Parks & Recreation Director
Patricia Linville Library Director
C_ ity Clerk Deaartment
Patrick Reilly City Clerk
Attorney
Eric E. Wohlforth City Attorney
Wohlforth, Vassar, Johnson & Brecht
X3O
CITY OF SEWARD
Organizational Chart
Citizens
Boards &
commissions
Mayor &
Council
Planning a
Zoning
Port a
Commerce
City City ClerkManagerI
Historic
Preservation
Police Finance Engineering
Utilities
Harbor Fire I Parks &
Recreation
XXII
Library
City
Attorney
t PART II
I FINANCIAL SEC
1 Independent Auditor's Report
General Purpose Financial Statements
Combining, Individual Fund and
Account Group Financial Statements and Schedules
1
MIKUNDA, COTTRELL & CO.
A Professional Corporation
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 Rert
1 Honorable Mayor and City Council
City of Seward
1 We have audited the accompanying general purpose financial statements of City of Seward, Alaska,
as of and for the six -month period ended December 31, 1999. 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. 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 December 31, 1999 and the
results of its operations and the cash flows of its proprietary fund types for the six -month period
then ended in conformity with generally accepted accounting principles.
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.
The other data included in the "statistical section' in the table of contents, has not been audited
by us and accordingly, we express no opinion on such data.
t o 4'
J
March 17, 2000
1
MCGLADREY NETWORK
An Inaepenaently Owned Men" F Wori"ide Services Thfough RSM International Offices: Anchorage, Bethel & Kenai
3
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1
1
2 '
I
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.
I
19
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0
A
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a
I
1 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
groups.
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.
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
sources and changes in cash balances of the Enterprise Funds and Internal Service
Fund.
tNotes to General Purpose Financial Statements.
3
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CI'T' ' Y OF SEWARD
ExhibitB-1
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental Fund Types '
Six Months Ended December 31, 1999
with Comparative Totals for Fiscal Year Ended June 30, 1999
Totals '
Memorandum Only_
Fiscal
Special Debt Capital (Six Months) Year) '
General Re. Service Project 99 1999
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and bails
Land sales
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Library
Public service
Debt service
Capital outlay
Total expenditures.
Excess of revenues
over (under) expenditures
S 2,255,326 - 2,255,326 3,584,389
73,715 - 73,715 144,003
1,096,178
438,185 177,341 313,260 928,786 1,344,510
925,721 - 925,721 1,475,581
10,748 - 10,748 17,347
104,719 - 10,168 19,200 134,087
254,085
271,856
41,956 109,242 151,198 230,256
211,364
3,850,370 286,583 10,168 332,460 4,479,581 7,322,027
864,468 1,849 - 866,317 1,569,272
1,029,356 66,822 - 1,096,178 1,975,242
331,528
490,459 490,459 863,536
4,867,973
386,599 11,552 - 398,151 603,241
117,411 145 - 117,556 234,882
211,364 - 211,364 43,729
166,080 403,978 570,058 792,267
483,998 483,998 970,108
3,054,373 291,732 403,978 483,998 4,234,081 7,052,277
795,997 (5,149) 393,810 151,538 245,500 269,750
Other financing sources (uses):
Operating transfers from other funds 455,460 1,534 487,544 244,571 1,189,109 1,233,844
Operating transfers to other funds 8( 84,140) - - _C100,000 _) 984,140 1,083,639
Net other financing sources (uses) 4( 28,680) 1,534 487,544 144,571 204,969 150,205
Excess of revenues and other
financing sources over (under)
expenditures and other uses
Beginning fund balances
Residual equity transfers to other funds
Ending fund balances
367,317 (3,615) 93,734 6,967) 450,469 419,955
3,577,473 29,320 336,095 925,085 4,867,973 4,525,218
331,528 - - 331,528 77,200
S 3,613,262 25,705 429,829 918,118 4,986,914 4,867,973
See accompanying notes to general purpose financial statements.
6
CITY OF SEWARD
Statement of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual - General Fund
Six Months Ended December 31, 1999
with Comparative Totals for Fiscal Year Ended June 30, 1999
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and bails
Investment income
Miscellaneous
Total revenues
Exhibit C -1
Six Months)
1999 (Fiscal
Variance Year)
Favorable 1999
B__udW Actual Unfavorable ACtu8l)
2,286,196 2,255,326 (30,870) 3,584,389
69,050 73,715 4,665 144,004
382,082 438,185 56,103 1,021,209
870,288 925,721 55,433 1,475,581
8,500 10,748 2,248 17,347
68,000 104,719 36,719 214,140
42,050 41,956 (94) 218,596
3,726,166 3,850,370 124,204 6,675,266
Expenditures;
Current:
General government 990,550 864,468 126,082 1,542,370
Public safety 1,102,777 1,029,356 73,421 1,914,943
Public works 535,900 490,459 45,441 863,536
Parks and recreation 459,153 386,599 72,554 597,516
Library 124,536 117,411 7,125 227,882
Debt service 166,082 166,080 2 215,374
Total expenditures 3,378,998 3,054,373 324,625 5,361,621
Excess of revenues over expenditures 347,168 795,997 448,829 1,313,645
Other financing sources (uses):
Operating transfers from other funds 426,579 455,460 28,881 214,268
Operating transfers to other funds
Net financing sources (uses)
1,219,014
792,435
884,140
42( 8,680)
334,874
363,755
805,282
591,014other
Excess of revenues and other financing
sources over (under) expenditures and
other uses 445,267) 367,317 812,584 722,631
Beginning fund balance 3,577,473 2,932,042
Residual equity transfers to other funds 33{ 1,528) 77,200
Ending fund balance 3,613,262 3,577,473
See accompanying notes to general purpose financial statements.
7
1-1
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THIS PAGE LEFT BLANK INTENTIONALLY I
i
MY OF SEWARD
Combined Statement of Revenues, Expenses
and Changes in Retained Earnings -
All Proprietary Fund Types
Six Months Ended December 31, 1999
with Comparative Totals for Fiscal Year Ended June 30, 1999
Operating revenues
Operating expenses
Earnings from operations before depreciation
Depreciation
Earnings from operations
Nonoperating revenues (expenses):
Gain (loss) on disposal of property and equipment
Investment income
Land lease
Interest expense
Otherrevenues
Net nonoperating revenues
Earnings before operating transfers
Operating transfers to other funds
Net earnings (loss)
Increase in retained earnings for capitalized assets
constructed in other funds
Increase in retained earnings for reclasses from
contributed capital
Amortization of contributed capital
Increase in retained earnings
Beginning retained earnings
Prior period adjustment
Residual equity transfers to other funds
Ending retained earnings
See accompanying notes to general purpose financial statements,
9
Eabibit D-1
9,733
1,214,143
1,127,088
1 1,573,710
4426
12,273,827
123,100
9,733 -
4,864 1,219,007 2,284,859
33,488 1,160,576 2,727,747
195,487 11,769,197 9,408,994
283,181)
4 26,971) (84,363)
228,975 12,502,802 11,769,197
Totals
Memorandum Only)
Fiscal
Internal Six Months) Year)
Enterprise 5ervige 1999
S 5,096,302 97,559 5,193,861 10,047,054
3,451,997 3,451,997 6,695,928
1,644,305 97,559 1,741,864 3,351,126
1,553,129 68,943 1,622,072 3,039,826
91,176 28,616 119,792 311,300
14,617) 10,617) 64,470
295,699 8,138 303,837 342,306
175,000
268,178) 8,130) 276,308) 621,394)
101 101 198,311
17,005 8 171013 158,693
108,181 28,624 136,805 469,993
204,969 2.04,969) 150,205
96,788) 28,624 68,164) 319,788
9,733
1,214,143
1,127,088
1 1,573,710
4426
12,273,827
123,100
9,733 -
4,864 1,219,007 2,284,859
33,488 1,160,576 2,727,747
195,487 11,769,197 9,408,994
283,181)
4 26,971) (84,363)
228,975 12,502,802 11,769,197
CITY OF SEWARD
Combined Statement of Cash Flows -
All Proprietary Fund Types
Six Months Ended December 31, 1999
with Comparative Totals for Fiscal Year Ended June 30, 1999
Cash flows from operating activities:
Earnings from operations
Adjustments to reconcile earnings 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
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 noncapital financing activities:
Operating transfers to other funds
Operating transfers from other funds
Residual equity transfers to other funds
Decrease in advances to other funds
Decrease in advances from other funds
Receipts on loan to Alaska Railroad Corporation
Net cash flows from noncapital financing activities
10
Exhibit E-1 I
Totals 1
Memorandum Only)
Internal Six Months)
Fiscal
Year) tEnterpriseService12221999
S 91,176 28.616 119,792 311,300
1,553,129 68,943 1,622,072 3,039,826
3 3 372,748
13,533 13,533 38,853)
186,615 186,615 29,724)
11,537
8,549 8,549 454)
26,200) 26,200) 192,732)
41,366)
1,158)
41,366)
1,158)
695
5,966
5,743 5,743 5,552
26,025) 26,025) 70,472)
14,610 14,610
19,665 19,665 12,317)
1,798,274 97,559 1,895,833 3,403,072
1
484,955) 484,955) 150,205)
279,986 279,986
50,797) 50,797) 84,363)
19,712
19.712)
136,998
25{ 5,766) 2_ 255,766) 97,5
t
t
C
CITY OF SEWARD
Combined Statetoeat of Cash Flows -
All Proprietary Fund Types, continued
Cash flows from capital and related financing activities:
Increase in due from other funds
Principal payments on long -term debt
Interest payments on long -term debt
Cash held by fiscal agent
Acquisition of property, plant and equipment
Special assessments
Proceeds from sale of property and equipment
Contributed capital
Increase (decrease) in 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
Beginning cash and investments
Ending cash and investments
Reconciliation of cash and investments to balance sheet:
Cash and investments:
Current assets
Restricted assets
Noncash capital and related financing activities:
Increase in contributed capital and
assessments receivable
Corrections and reclassifications to:
Contributed capital
Property, plant and equipment
Increase in property, plant and equipment, and con-
tributed capital resulting from transfer of Harbor
assets from State
See accompanying notes to general purpose financial statements.
m
990,522) (46,733) l.0_[ 37,255) 1,259,071
295,699 8,138 303,837 342,306
847,685 58,964 906,649 4,906,879
9,612,254 268.258 9180,512 4,973,633
S 10,459,939 327,222 10,787,161 9,880,512
S 10,152,734 327,222
307,205
S 10,459,939 327,222
S 277,271 - 277,271 -
S 48,220 - 48,220 5 98,157)
S - - 568.483 )
S - - - 1,479.397
Totals
Memorandum Only)
Fiscal
Internal Six Months) Year)
EntcEpri s< Service im 1.212
S 46,713 46,713 46,713
665,771) 39,436) 705,207) 928,469)
267,158) 7,297) 274,455) 569,722)
155,500) 155,500)
458,374) 18,000) 476.374) 1,268.675)
2,632 2,632 1,956
87,727
513,519 18,000 531,519 569,483
6,681) 6,681) 3,319,495
98 98 563
990,522) (46,733) l.0_[ 37,255) 1,259,071
295,699 8,138 303,837 342,306
847,685 58,964 906,649 4,906,879
9,612,254 268.258 9180,512 4,973,633
S 10,459,939 327,222 10,787,161 9,880,512
S 10,152,734 327,222
307,205
S 10,459,939 327,222
S 277,271 - 277,271 -
S 48,220 - 48,220 5 98,157)
S - - 568.483 )
S - - - 1,479.397
F,
THIS PAGE LEFT BLANK INTENTIONALLY 1
r
NOTES TO GENERAL PURPOSE
FINANCIAL STATEMENTS
The notes to the General Purpose Financial Statements represent
a summary of significant account policies and other notes to the
financial statements necessary for adequate disclosure.
M
R61
R
R
A
A
V
CrrY of SEWARD
Notes to General Purpose Financial Statements
December 31, 1999
1) Summary of Sign_ ifcaat 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.
iThe 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.
Reportine 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
1
operations were transferred to Providence Alaska Medical Center, a private health care
provider.
For the six months ended December 31, 1999, 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 Type
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
C1TY OF SEWARD I
Notes to General Purpose Financial Statements, continued '
Summary of Significant 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 PERS 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). ,
Pronrietary Fund Tvves
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.
Fixed 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 fiord '
type operations (general fixed assets) are accounted for in the General Fixed Assets
14
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Summary of Significant Accounting Policies. continued
Fixed Assets and Long -Term Liabilities, continued
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 govemmenW 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 concemed only with the measurement of
financial position. They are not involved with measurement of results of operations.
All proprietary funds are accounted for on a cost of services or "capital maintenance"
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.
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 does not reduce earnings or increase losses transferred to
retained earnings. Instead it is included in accumulated amortization which offsets
contributed capital in the fund equity section of the Enterprise Fund balance sheets.
Depreciation for all plant and equipment in the proprietary funds is computed by use of the
1 straight -line method over the estimated economic lives of the assets.
15
CITY OF SEWARD '
Notes to General Purpose Financial Statements, continued '
Summary of Sienif cant Accounting Policies. continued ,
Fixed Assets and Long -Term Liabilities. continued
Estimated lives of major asset categories are as follows: '
Life in years
Buildings 10 -50
Improvements other than buildings 10 -50
Equipment 2 -30
Focus and Basis of AccountingtMeasurement
Measurement focus refers to which resources are being measured when reporting financial
position and performance. Basis of accounting refers to when revenues, expenditures,
expenses and transfers, and the related assets and liabilities are recognized in the accounts
and reported in the financial statements. Specifically, it relates to the timing of the
measurements made regardless of the measurement focus applied.
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 60 days after year end. All primary revenue tsourceshavebeentreatedassusceptibletoaccrual. Expenditures are recognized on the
accrual basis with the exception of principal and interest on general long -tern 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.
PropLnetary Fund TyWs 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.
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 allocated
among the funds based on their respective cash balances. '
16
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Summary of Siggificant Accounting Policies continued
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.
17
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 RevegA
In applying the measurable and available concepts to grants and intergovernmental 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 are considered
earned "; 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 December 31, the delinquent real and personal taxes not currently available are reflected
as deferred revenues of the General Fund.
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.
17
CITY OF SEWARD '
Notes to General Purpose Financial Statements, continued '
Summary of S' ifcant Accounting Policies continued
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 December.
Outstanding purchase orders, if any, at December 31, are cancelled and new ones are ,
issued in the subsequent year. As a result, there are no outstanding encumbrances at
December 31, 1999.
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 and the City Manager.
Reclassifications
Certain reclassifications have been made to the fiscal year 1999 financial statements to make '
them comparable with the six months ended December 31, 1999 presentation.
Comparative Data '
Comparative total data for the prior fiscal 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. '
Total 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.
CrrY OF SEWARD
1 Notes to General Purpose Financial Statements, continued
Summary of Significant Accounting Policies, continued
Change in Fiscal Year
On October 6, 1998, the voters of Seward approved changing the City's year -end from a
fiscal period ending on June 30 to December 31. In accordance with this change, the
statements of revenues, expenditures (expenses) and changes in fund balance (retained
earnings) and the statements of cash flows for the period ended December 31, 1999 cover a
period of six months whereas those statements cover a full fiscal year (twelve months) for
the preceding year's comparative financial statements.
2 Stewardi,hip, Com liance and AccountabiG
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 Annropriations Appropriations
General Fund $ 4,246,906 $ 4,59$,012
The following fund had a deficit in fund balance at December 31, 1999:
Gateway Subdivision Capital Project Fund
19
7,977
CrrY OF SEWARD ,
Notes to General Purpose Financial Statements, continued '
3) Cash and Investments I
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 finds."
jft2si
At December 31, 1999, the carrying amount of the City's deposits was ($39,331) and the
bank balances totaled $123,490. 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.
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 l
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 cou nterparty, or by its trust
department or agent, but not in the City's name.
Category
1 2 3 Total
Overnight repurchase
agreement $ - 3,508,760 - 3,508,760
U.S, government securities 500,000 11,252.705 11,752,705
500.000 14.761.455
Restricted Cash t
The City also maintains electric bond redemption and reserve accounts as required by the
bond covenants. The balance in these accounts at December 31, 1999 totaled $307,205
and is included in investments.
iCITY OF SEWARD
Notes to General Purpose Financial Statements, continued
i
21
Cash and Investments continued
Investments, contigmW
A reconciliation of cash and investments as shown on the combined balance ssheet follows:
Cash on hand $ 1,800
Carrying amount of deposits ( 39,331)
Carrying amount of investments 115,261,465
Cash and investments as shown on the
combined balance sheet:
Cash and investments $ 14,916,729
Restricted assets - cash and investments 3307,205
1 $ 15- 223.934
4) Fixed Assets
A summary of changes in general fixed assets follows:
Balance at BBalance
Jully_1 1999 Additions DDeletions December 31, 1999
LLand and land rights $ 3,870,420 28,095 - 33,898,515
Buildings 53,658,926 7,747,978 - 661,406,904
I IImprovements other
tthan buildings 10,456,706 147,307 - 10,604,013
Equipment 2,852,411 75,260 - 22,927,671
FFixed assets in service 70,838,463 7,998,640 - 778,837,103
Construction in progress 8,079,961 309,937 ( 7,899.19 4490,702
8-3 ( 7,899.196) ZZ2J2=
21
1CMOFSEWARD .
Notes to General Purpose Financial Statements, continued t
Fixed Assets, continued
A summary of proprietary fund type property, plant and equipment at December 31, 1999
follows:
Internal
Enterprise Service
Funds Fund
Land and land rights $ 15,754,269
Buildings 4,651,320
Improvements other than buildings 37,236,785
Equipment 42,054,262 1,273,045
Docks and floats 16,342,503
116,039,139 1,273,045
Less accumulated depreciation 40 7098 804} 62(23471
75,240,335 650,698
Construction in progress 454,725
Property, plant and equipment, net $ 75.695.060 65_ 0:698
5) Interfund Receivables and Pa ables
Interfund receivable and payable balances at December 31, 1999, are as follows:
Interfund Interfund
Receivables Pavables
General Fund
Flood Mitigation Special Revenue Fund
156,194
65,210
Capital Project Funds:
Equipment Replacement 1,650
Firehose Replacement 29,708
Streets and Sidewalks 22,109
Gateway Subdivision 16,630
Seward Association for Advancement
of Marine Science 199
Seward Marine Industrial Center
Enterprise Fund 20,688
Totals 156.194
22
QTY OF SEWARD
Notes to General Purpose Financial Statements, continued
6) Operatine Transfers
A summary of operating transfers between funds for the six months ended December 31,
1999 follows:
From To
Other Other
Lund Funds
General Fund:
Special Revenue Funds:
Emergency Shelter Supplies $ 1,000
DARE Program 534
Capital Project Funds:
Capital Acquisition 105,732
Firehose Replacement 7,393
Library Automation 14,400
Forest Acres Road 17,046
Enterprise Funds:
Water and Sewer
Electric
76,840
317,500
Harbor 54,037
SNMC
Debt Service
7,083 250,491
487,544
Total General Fund 455,460 884,140
Special Revenue Funds from General Fund:
Emergency Shelter Supplies 1,000
DARE Program 534
Total Special Revenue Funds 1.534
Debt Service Fund from General Fund 487,544
1 Capital Project Funds from General Fund:
Capital Acquisition 105,732
Firehose Replacement 7,393
Library Automation 14,400
Forest Acres Road 7,046
144,571
Capital Acquisition Fund to other Capital Project Funds:
Capital Acquisition 100,000
Streets and Sidewalks 40,000
Firehall Roof Repair 60,000
Total Capital Project Funds 244,571 100,000
23
1
7) Residual Equity Transferx '
A summary of residual equity transfers between funds for the six months ended December 31, 1999
follows:
From To
CITY OF SEWARD
Other Other
Notes to General Purpose Financial Statements, continued
Funds
OiDerating Transfers continued From
Other
To
Other
63,528
Eumb Eunds
Enterprise Funds from (to) General Fund:
General Fund to Motor Pool Internal Service Fund
Motor Pool Internal Service Fund from General Fund 18,000
18,000
Water and Sewer 76,840
Electric 317,500
Harbor 54,037
49,291
SMIC 250,4917 0_8_3
Total Enterprise Funds 250,491 455.460
1,506
Total operating transfers LAI= LIU"
7) Residual Equity Transferx '
A summary of residual equity transfers between funds for the six months ended December 31, 1999
follows:
Total residual equity transfers $ 1.188.760 1.188.768 '
The residual equity transfers from other funds were recorded in contributed capital, except for the
430,261 transfer between the Harbor Enterprise Fund and SMIC Enterprise Fund which was '
recorded in retained earnings.
From To
Other Other
Funds Fu
General Fund to Water and Sewer Enterprise Fund 63,528
Water and Sewer Enterprise Fund from General Fund 63,528
General Fund to Motor Pool Internal Service Fund
Motor Pool Internal Service Fund from General Fund 18,000
18,000
General Fund to Harbor Enterprise Fund 250,000
Harbor Enterprise Fund from General Fund 250,000
Harbor Enterprise Fund to Water and Sewer Enterprise Fund 49,291
Water and Sewer Enterprise Fund from Harbor Enterprise Fund 49,291
Water and Sewer Enterprise Fund to Harbor Enterprise Fund 1,506
Harbor Enterprise Fund from Water and Sewer Enterprise Fund 1,506
Harbor Enterprise Fund to Parking Revenue Enterprise Fund 376,174
Parking Revenue Enterprise Fund from Harbor Enterprise Fund 376,174
Harbor Enterprise Fund to SMIC Enterprise Fund 430,261
SMIC Enterprise Fund from Harbor Enterprise Fund 430,261
Total residual equity transfers $ 1.188.760 1.188.768 '
The residual equity transfers from other funds were recorded in contributed capital, except for the
430,261 transfer between the Harbor Enterprise Fund and SMIC Enterprise Fund which was '
recorded in retained earnings.
1 CrrY OF SEWARD
Notes to General Purpose Financial Statements, continued
8) 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 ($174,014 at December 31, 1999) is
recorded in the General Long -Tenn 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 leave follows:
Balance at July 1, 1999 $ 202,672
Decrease 8 5
Balance at December 31, 1999 $ 174.014
9) Long -Term Debt
General Oblipati n 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.
General obligation bonds are direct obligations and pledge the full faith and credit of the government.
25
General obligation bonds at December 31, 1999 are as follows:
Interest
13a1 Amsulll
S1,700.000 1980 electric serial
bonds, due in six -month installments
of 5145,000 to $155,000, through
January 1, 2001 7% 300,000
5475,000 1990 general government serial
bonds, due in a final installment of
75,000 on December 1, 2000 7.1 %to 7.375% 75,000
3,990,0001993 refunding electric
serial bonds, due in six -month installments
of $435,000 to $560,000 through
October 1, 2004 4.75% to 5.35% 2,540.000
2,030,000 1993 refunding harbor/
general government serial bonds for
the 1967 bonds, Series A, due in
six -month installments of 5160,000 to
5240,000 through December 1, 2007 4.75% to 5.65% 1,600.000
1,465,0001993 refunding general
government serial bonds for the 1990
bonds, Series A. due in six -month
installments of $ 15,000 to 5165,000
through December 1, 2011 435% to 5.8% 1,390,000
57,500,000 1996 hospital serial bonds,
due in six -month installments of $205,000
to $825,000 through October 1, 2013 4.75% to 6.75% 7,120, 000
25
CITY OF SEWARD I
Notes to General Purpose Financial Statements, continued I
Lon -Term Debt continu d 1
Revenue bond principal and interest are payable from resources generated by a particular '
government operation such as a public utility. Revenue bonds at December 31, 1999
are as follows:
Interest '
Rates Amount
3,225,000 1995 Electric Fund serial bonds,
due in six -month installments of $100,000
to $290,000 through June 1, 2015 4.85% to 7.35% $ 3IQ0.000 '
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 $ 13,025,000
Less unamortized loss on 1993 refunding bonds (277,038)
12,747,962
Revenue bonds 3,100,000
26
15-812.96
General obligation bond and revenue bond debt service requirements to maturity are as
follows:
General Long -Term
Year Ending Enterprise Funds Debt Account Group Total
December 31, Princi 1 Interes Principal Interest Principal Interest
2000 700,000 319,286 490,000 558,192 1,190,000 877,478
2001 760,000 277,583 530,000 532,497 1,290,000 810,080
2002 650,000 237,773 585,000 506,131 1,235,000 743,904
2003 685,000 202,846 640,000 476,453 1,325,000 679,299
2004 715,000 167,144 695,000 443,703 1,410,000 610,847
2005 -2015 2,430.000 82_.5.966 7,245.000 1,999,195 9,675,000 2.825,161
5.940.000 2.022M 10,185.99 4S I6.171 16„125.040 6.546.7 2
26
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Lone -Term Debts continued
Notes payable by the Water and Sewer Enterprise Fund at December 31, 1999 are as
follows:
Interest
Rates Amount
26,231 note payable to State of Alaska
Department of Environmental Conservation,
due in six -month installments of $1,312
through July 15, 2014 4.75% 19,671
901,851 note payable to State ofAlaska
Department of Environmental Conservation,
due in six -month installments, including interest,
of $70,995 through November 5, 2013 4.31% 734,807
754.478
Debt service requirements to maturity on notes payable are as follows:
Year Ending 4.75% Note Payable 4.31 % Mote Payable TOtal
December 3 L Principal Interest Principal Intere s Principal Interest
2000 $ 1,312 934 39,324 31,670 40,636 32,604
2001 1,312 872 41,019 29,975 42,331
2002 1,312 810 42,787 28,207 44,099
30,847
29,017
2003 1,312 748 44,631 26,363 45,943 27,111
2004 1,312 685 46,555 24,440 47,867
2005 -2014 13,111 3,426 520.491 118,461 533,602
25,125
121,887
19,671 2AU 734.807 259.116 754.478 266.591
Obligation Payable to the State of Alaska Public Employees Retirement System
The dissolution of the Seward General Hospital Enterprise Fund, a blended component
unit, on December 31, 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
December 31, 1996. At December 31, 1999, 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.
27
CITY OF SEWARD
Notes to General Purpose Fumcial Statements, continued
Lone-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
future 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 December 31, 1999, are
considered defeased:
General government $ 1,280,000
Changes in Long -Term Liabilities
During the six -month period ended December 31, 1999, the following changes occurred in
long -term liabilities:
Balance at Balance at
July 1, 1999 Additions Reductions December 31, 1999
General Government
Compensated absences 202,672 28,658 174,014
General obligation bonds 9,185,640 318,240 8,867,400
Retirement incentive program 29,207 102,551 14,604 117,154
State of Alaska 1,082,570 1,082,570
10,5.00.g82 102,551 361,502 IQ.241,138
Enterprise Funds
General obligation bonds 4,724,360 566,760 4,157,600
Revenue bonds 3,100,000 3,100,000
Capital leases 535,000 60,000 475,000
Retirement incentive program 24,634 31,982 12,317 44,299
Notes payable 793,490 3%012 754,478
LUZA84 8.531,377
Internal Service Fund
Capital leases $ 311.628
28
39.43b 272.192
i
i
t
i
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Long-Term Debt continued
Revenue Bond RegUiMM
The City issued $3,225,000 of Electric Fund serial bonds in fiscal year 1995 related to
construction of the Lawing/Fort 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
six -month debt service on the bonds. This amount at December 31, 1999 was
307,205 and will remain at that level until the bonds mature to 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
payments in lieu of taxes plus investment income. For the six -month period ended
December 31, 1999, income available for revenue bond debt service totaled
1,454,908. Annualized income approximated $2,993,000; the debt requirement was
275,248, resulting in a ratio of 10.9. The City is in compliance with the income
requirement for the six -month period ended December 31, 1999.
10) 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 December 31, 1999:
Internal
Enterprise Service
F_ unds Fund
Machinery and equipment $ 856,546 701,447
Less accumulated depreciation 27( 71 2,44) (272,0.3_8)
Carrying value $ 429.444
FM
CITY OF SEWARD 1
Notes to General Purpose Financial Statements, continued '
Capitalized_ Leases,-continued
The following is a schedule of future minimum lease payments under these capital leases '
and the present value of the net minimum lease payments at December 31, 1999:
Present value of future minimum '
lease payments 475,000 272,192
Less current portion 65.000 89551 ,
Long -term portion $ 410.000 X41
11) Retirement Incentive Prop-ram '
In August 1997, the City elected to participate in the Public Employees' Retirement
System retirement incentive program. The program required the City to pay $80,761 to '
the State of Alaska in three installments of $26,920 on August 1, 1998, 1999, and 2000.
In the six -month period ending December 31, 1999, additional employees elected to
retire, requiring an additional total payment of $134,533 in three installments of ,
49,712 each on August 1, 2000, 2001 and 2002. The combined original liability
totaled $215,295 with a balance outstanding at December 31, 1999 of $161,453. The ,
total remaining annual installments are $71,765 for August, 2000 and $44,844 for
August 2001 and 2002.
30
1
Internal
Year Ending Enterprise Service
December 31. Funds Fund
2000 99,525 102,290
2001 99,650 83,599
2002 99,715 59,680
2003 99,353 52,952
2004 103,553
2005 101.983
Total minimum lease payments 603,779 298,521
Less interest 128.779 26,329
Present value of future minimum '
lease payments 475,000 272,192
Less current portion 65.000 89551 ,
Long -term portion $ 410.000 X41
11) Retirement Incentive Prop-ram '
In August 1997, the City elected to participate in the Public Employees' Retirement
System retirement incentive program. The program required the City to pay $80,761 to '
the State of Alaska in three installments of $26,920 on August 1, 1998, 1999, and 2000.
In the six -month period ending December 31, 1999, additional employees elected to
retire, requiring an additional total payment of $134,533 in three installments of ,
49,712 each on August 1, 2000, 2001 and 2002. The combined original liability
totaled $215,295 with a balance outstanding at December 31, 1999 of $161,453. The ,
total remaining annual installments are $71,765 for August, 2000 and $44,844 for
August 2001 and 2002.
30
1
CITY OF SEWARD
INotes to General Purpose Financial Statements, continued
12) Defined Benefit Pension Plan
Descri ,tion 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 State
Legislature.
The plan is included in a comprehensive annual financial report that includes financial
statements and other required supplemental information. The report is available at the
following address:
Department of Administration
Division of Retirement and Benefits
P.O. Box 110203
Juneau, AK 99811 -0203
Fundin Policv
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 5.17%
Postemployment
healthcare 1.92%
Total contribution rate 7
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.
Six -Month Pension Cost
For the six -month period ended December 31, 1999, the City's pension cost of $107,653
for PERS was equal to its required and actual contributions.
31
MY OF SEWARD . 1
Notes to General Purpose Financial Statements, continued 1
Defined Benefit Pension Plan continued ,
Six -Month Pension Cost continued
The required contribution was determined as part of the June 30, 1996 actuarial valuation. ,
The significant actuarial assumptions used in the valuation of the plan follow:
1. Investment return of 8.25% per annum, ,.ompounded 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 6.5% in 1998, and 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
S. 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: 1
Fiscal Annual Percentage Net
Year Pension of APC Pension
En in¢ Cost (APC) Contributed Obli ag tion
June 30, 1997 241,250 100%
1998 143,685 100%
1999 222,230 100%
I
J
I
1 1
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Defined Beneft Pension -Plan, continued
A schedule of funding progress for PERS follows:
June 30,1996:
Unfunded
8,616,000
Assets in
580,000) 107%
Excess of)
Unfunded Liability as
Actuarial Actuarial Actuarial (Assets in Percentage
Valuation Value of Accrued Excess of) Funded Covered of Covered
Date Mse Egioo P&Mll Payroll
June 30,1996:
Pension
Postemployment
8,616,000 8,036,000 580,000) 107% 3,100,000 19%)
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 %)
June 30, 1998:
Pension 10,707,000 10,172,000 (535,000) 105% 2,929,000 (18 %)
Postemployment
healthcare 4,271,000 4,058,000 (213,000) 105% 2,929,000 (7 %)
13) International Brotherbood 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 1999 was $3 per compensable hour for a total contribution
of $23,128 for the six -month period ending December 31, 1999.
14) 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.
33
CITY OF SEWARD '
Notes to General Purpose Financial Statements, continued '
Deferred Compensation Plan, continued ,
The City has amended its 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. '
15) 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, (e) 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 liability; workers' compensation, including employers '
liability; and commercial blanket bond. The City maintains supplemental marine insurance,
boiler and machinery insurance and firefighters group accident coverage with insurance
companies placed through JIA. 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 deposit contribution in comparison to
the aggregate deposit contributions of all members. The Association made no
supplemental assessments during the period ended December 31, 1999.
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 '
RA 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. '
34
CITY OF SEWARD
Notes to General Purpose Financial Statemmts, continued
Risk Management, continued
t 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.
16) Changes in Contributed Capital
A summary of changes in contributed capital for the six months ended December 31, 1999
follows:
Balance at Balance at
July 1, 1999 Additions Deletions December 31 1999
Enterprise Funds:
Electric 22,764,548 160,907 2,100 22,923,355
Water and Sewer 11,577,069 223,871 - 11,800,940
Harbor
SMIC
56,147,456 404,637 45,484,459
45,484,459 -
11,067,634
45,484,459
Parking Revenue T
376,174 - 376,174
Total Enterprise Funds 90. 489. 073 46.650.048 45.486.59 91.652.562
Internal Service Fund 487 -10 18,000 -
A summary of changes in accumulated amortization of contributed capital follows:
Balance at Balance at
July 1, 1999 Additions Deletions December 31, 1999
Enterprise Funds: -
Electric $ 6,924,991 392,451 7,317,442
Water and Sewer 5,394,080 146,729 - 5,540,809
Harbor 14,946,875 181,893 13,688,752 1,440,016
SMIC 14,181,822 14,181,822
Total Enterprise Funds $ 27. 265.946 14.902,895 13,688.752 28.480.089
Internal Service Fund $ 24.324 4.864 -
17) Se went Information for Prol2rietary Fund Types
Enterprise Funds
The City maintains five enterprise funds, which provide electric, water and sewer, harbor,
Seward Marine Industrial Center and public parking services. Segment information
for the six months ended December 31, 1999 follows:
35
MY OF SEWARD
Notes to General Purpose Financial Statements, continued
Segment Information for Proprietary Fund T)Ms, continued
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
317,500)
Water
Electrig and Sewer
S 3,262,274 775,207
608,238 183,835
445,846 117,044
317,500) 76,840)
72,041 72,628
160,907 223,871
234,733
69,452)
4,507,089
29,568,058
160,958
Harbo r S VMIC
795,662 184,889
191,829 565,420
11,423) (501,247)
54,037) 243,408
35,404 (320,242)
404,637 45,484,459
62,683 52,157,514
52,615,443) -
204.969) '
43,381 (96,788)
376,174 46,650,048
376,174 52.992,062 '
52,684,895)
11,778,196 369,806 (232,873) 87,886 6,510,104
10,534,827 11,152,027 36,433,681 464,185 88,152,778
5,940,000 754,478 44,299 1,792,601 - 8,531,378 '
23,093,775 9,743,106 7,444,464 34,704,702 460,253 75,446,300
18) Harbor Enterprise Fund '
During the fiscal year ended June 30, 1999, the State of Alaska transferred all of its
interest in certain harbor assets to the City of Seward. The estimated fair value of
these assets at the time of the transfer was $1,479,397 and has been included in the ,
Harbor's property, plant and equipment and contributed capital.
In addition, the City received a grant of $3,134,200 from the State to perform repairs and '
renovations to the facilities. At December 31, 1999, $3,079,238 of the amount
remained unexpended and is included in deferred revenue in the Harbor Enterprise
Fund. ,
Total
Parking Enterprise
Rev gnu Funds
78,270 5,096,302
3,807 1,553,129
40,956 91,176
204.969) '
43,381 (96,788)
376,174 46,650,048
376,174 52.992,062 '
52,684,895)
11,778,196 369,806 (232,873) 87,886 6,510,104
10,534,827 11,152,027 36,433,681 464,185 88,152,778
5,940,000 754,478 44,299 1,792,601 - 8,531,378 '
23,093,775 9,743,106 7,444,464 34,704,702 460,253 75,446,300
18) Harbor Enterprise Fund '
During the fiscal year ended June 30, 1999, the State of Alaska transferred all of its
interest in certain harbor assets to the City of Seward. The estimated fair value of
these assets at the time of the transfer was $1,479,397 and has been included in the ,
Harbor's property, plant and equipment and contributed capital.
In addition, the City received a grant of $3,134,200 from the State to perform repairs and '
renovations to the facilities. At December 31, 1999, $3,079,238 of the amount
remained unexpended and is included in deferred revenue in the Harbor Enterprise
Fund. ,
36
1 CffY of SEWARD
1 Notes to General Purpose Financial Statements, continued
19) Seward Marine Industrial Center Enterprise Fund
Effective July 1, 1999, the assets, liabilities and equity related to the Seward Marine
Industrial Center (SMIC) were transferred to a separate enterprise fund from the
Harbor Enterprise Fund. The following amounts were attributed to and transferred
into the SMIC Enterprise Fund:
Current assets and deferred debt issuance costs $ 11,188
Property, plant and equipment, net 36,947,531
Current liabilities $ 84,845
Long -term debt 1,848,930
Contributed capital, net 34,594,683
Retained earnings 43.0,261
36.9 58.71 9
20) Conduit Debt - Revenue Bonds
On December 10, 1990, the City participated in the issuance of $7,300,000 of Variable
t 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 Pacific
University. The bonds do not constitute a general obligation debt or pledge of the full
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 was July
10, 2000. However, they were fully retired on March 8, 1999.
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
1 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.
37
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued '
Conduit Debt, 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 rfromgrantsfromtheStateofAlaskaandfromExxonValdezoilspillsettlementmonies.
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 December 31, 1999 follows:
SAAMS
16,795,000
21) 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 terms 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.
22) Commitments -and Contingencies
Amounts received or receivable from grantor agencies are subject to audit and adjustment by
grantor agencies, principally the state and federal government. Any disallowed claims,
including any amount already collected, could become a liability of the applicable funds.
Various other claims and lawsuits against the city are pending, but are either covered by
insurance or are the type which are normal and reasonable in view of the City's operations.
City management believes the total amount of the liability, if any, which may arise from
such claims and lawsuits beyond that which is covered by insurance would not have a
material effect on the City's financial condition or its ability to carry on its activities as
now conducted.
38
1
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
23) Prior Period Adjustment
During the current period, an adjustment was made effective July 1, 1998 to reduce retained
earnings and increase deferred revenue for moorage fees received in advance in the Harbor
Enterprise Fund. The adjustment resulted from moorage fees billed and collected prior to
year end having been recognized as received rather than when earned. Retained earnings
was reduced by $283,181 with a corresponding increase in deferred revenue.
39
I
1
COMBINING,
INDIVIDUAL FUND
AND
ACCOUNT GROUP STATEMENTS
AND SCHEDULES
I
I
I
40 I
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
f
1
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.
Exhibit Fj
CITY OF SEWARD
General Fund
Balance Shat
D 3l, 1999
with Comparative Amounts, for June 30,1999
December 31, June 30,
AM 1222 im
Cash and investments S 3.034,481 2,705.215
Receivables:
Taxes:
personal property 48,959 31,937
Less allowance for doubtful receivables 40,637) 28 .1197)
Net personal property 8,322 3.740
Motor vehicle 6,108 4.203
Hotellmotel room 8.335 56,316
Real property 21,531 8,993
Sales 309,592 574,555
Payments in lieu of taxes 78,665
Net taxes 353.888 726,472
Accounts 125,055 246,355
Less allowance for doubtful receivables 2,613) 2,983)
Net accounts 122,442 243,372
Property assessments 258,706 241,660
Less allowance for doubtful receivables 2T ( 41.660) 2( 41.6600
Net property assessments 17,046
Grants - State
Accrued interest
54,951
221,866
214,574
146,199
Total receivables 770.193 1.330,617
Prepaids 190,303 1,637
Inventory 4,957 4,643
Due from other funds 156,194 34.242
Liabilities and Fll Blalance
S 4,156.128 4.076,354
Liabilities:
Accounts payable 305,237 343,753
Salaries and wages payable 93,785 70,862
Accrued annual leave 38,877 22,807
AccnW liabilities
Funds held in oust
19,988
11,266
10,966
10,203
Deferred revenue 73.7I3 40.290
Total liabilities 542,866 498,881
Fund balance:
Reserved for inventory and prepaids 195,260 6,280
Unreserved:
Designated:
Working capital 1,500,000 1,500,000
Insurance 335,778 335,778
Subsequent years expenditures 505,815
Undesignated 1.076,409 1,735.415
Total fund balance 3,613.262 3.577,473
S 4,156.128 4,076,354
41
1
Exhibit F -2
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures
and Changes in Fund Balance
Six Months Ended December 31, 1999
with Comparative Amounts for Fiscal Year Ended June 30, 1999
Six Months) (Fiscal Year)
V-22 1999
Revenues:
Taxes $
Licenses and permits
2,255,326
73,715
3,584,389
144,003
Intergovernmental 438,185 1,021,209
Charges for services
Fines and bails
925,721
10,748
1,475,581
17,347
Investment income 104,719 214,140
Miscellaneous 41,956 218,597
Total revenues 3,850,370 6,675,266
Expenditures:
Current:
General government 864,468 1,542,370
Public safety 1,029,356 1,914,943
Public works 490,459 863,536
Parks and recreation
Library
386,599
117,411
597,516
227,882
Debt service 166,080 215,374
Total expenditures 3,054,373 5,361,621
Excess of revenues over expenditures 795,997 1,313,645
Other financing sources (uses):
Operating transfers from other funds
Operating transfers to other funds
455,460
8 84,1
214,268
805,282
Net other financing sources (uses) 4288,680 5( 91,014)
Excess of revenues and other financing
sources over expenditures and other uses 367,317 722,631
Beginning fund balance 3,577,473 2,932,042
Residual equity transfers to other funds 331,528 77,200) i
Ending fund balance $ 3,613,262 3,577,473
42
CITY OF SEWARD
Geneaai Fund
Sttsftxu of Revenues, Expenditures and
Changes in Fund Balarroe - Budget and Acrid
Six Months Ended December 31, 1999
with Comparative Amounts for Fiscal Year Ended June 30, 1999
Revenues:
Taxes:
Property
Sales
Payments in lieu of taxes
Penalty and interest
Hotetimotel room
Total taxes
Licenses and permits:
Building permits
Taxi permits
Department of Motor Vehicles commissions
Animal control licenses
Business lira=
Miscellaneous
Total licenses and permits
Intergovernmental:
General revenue sharing
Safe communities
Jail contract
Dispatch contract
Police and fire contracts
NPS dispatch contract
Raw fish tax
Fisheries landing tax
Liquor tax
Parks and recreation grant
Total intergovernmental
43
Six Months)
1999
Variance
Favorable
Rudw Actual (Unfavorable)
Fiscal Year)
Im
475,300
Charges for services:
Administrative
1,245,000
Rents and leases
47,712)
Copying charges
Work orders
23,588)
Recreation
1,200
Library
62)
Other
Total for
122,000
charges services
248
Fines and bails
250
Investment incorne
1.070
Miscellaneous:
69,050
Sale of land, equipment and gravel
Refine contract
Other
Total miscellaneous
102,439
Total revenues
43
Six Months)
1999
Variance
Favorable
Rudw Actual (Unfavorable)
Fiscal Year)
Im
475,300 515,544 40,244 523,993
1,245,000 1,197,288 47,712) 2,029,485
442,696 419,108 23,588) 864,106
1,200 1,138 62) 3,475
122,000 122,248 248 163.330
2,286,196 2,255,326 (30,870) 3.584,389
35,000 33.398 1,602) 67,389
600 820 220 1,881
25,000 29,897 4,897 53,314
200 90 110) 525
8,000 8,190 190 19,530
250 1.320 1.070 1,365
69,050 73.715 4,665 144,004
64,600 102,439 37,839 215,677
80,000 83,0% 3,0% 124,252
181,732 181,733 1 363,465
24,250 24,250 48,500
24,000 24,000) 48,000
1,000 1,000 500
4,500 814' 3,686) 197,792
3,000 10,846 7.846 3,0233
12,000 12,000 19,250
22,007 22,007 750
382,082 438,185 56.103 1,021,209
506,832 563,465 56,633 927,159
45,126 50,033 4,907 81,980
17,000 14,021 2,979) 31,502
30,000 21,192 8,808) 47,734
254,605 260,880 6,275 365,125
2,975 2,675 300) 6,458
13,750 I3,455 295) 15,623
870,288 925.721 55,433 1,475,581
8,500 10,748 2,248 17,347
68,000 104,719 36,719 214,140
15 15 13,382
26,500 29,963 3,463 43,975
15,550 11,978 3,572) 161,239
42,050 41,956 94) 218,596
1726,166 3,850,370 124,204 6,675.266
Exhibit F -3, continued ,
CTIN OF SEWARD
General Fund '
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
Six Months) (Fiscal Year)
1999 1999
Variance
Favorable '
Budget Actual (t`lnfavomble} Actual
Expenditures:
General government:
46,863 46,162 701 83,385
Mayor and council:
14,931 15,449 518) 30,440
Salaries 9,000 5,850 3,150 17,969
Employee benefits 795 544 251 1,638
Audit 37,600 37,600 37,600
Legal 50,000 49,984 16 135,060
Supplies and maintenance 10,150 6,731 3,419 16,067
Legislative representation 61,500 61,096 404 121,415
General and administrative 37,650 22,961 14,689 39,158
Capital outlay 2,899
Total mayor and council 206,695 184,766 21,929 371,806
Supplies and maintenance
City manager:
19,726 7,224 32,666
Salaries 83,023 79,628 3,395 150,157
Capital outlay
Employee benefits 25,024 28,697 3,673) 48,520
Total finance
Purchased services 2,800 2,445 355 2,158
Supplies and maintenance 4,200 2,522 1,678 4,797
General and administrative 16,500 13,508 2,992 32,050
Total city manager 131,547 126,800 4,747 237,682
City clerk:
Salaries 46,863 46,162 701 83,385
Employee benefits 14,931 15,449 518) 30,440
Purchased services 800 684 116 1,163
Supplies and maintenance 500 494 6 54
General and administrative 5,100 2,443 2,657 4,877
Total city clerk 68,194 65,232 2,962 119,919
Finance:
Salaries 155,938 144,624 11,314 264,765
Employee benefits 59,779 62,717 2,938) 105,845
Purchased services 9,475 12,544 3,069) 5,795
Supplies and maintenance 26,950 19,726 7,224 32,666
General and administrative 15,615 16,057 442) 28,288
Capital outlay 6,000 6,000 11,172
Total finance 273,757 255,668 18,089 448,531
44
7
L
CITY OFSEWARD
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
Capital outlay
Total general services
Contributions to civic organizations:
Providence Seward Medical Center
Wesley Rehabilitation and Care Center
Seward Life Action Council
Senior Citizens
Museum
Chamber of Commerce
Miscellaneous
Total contributions to civic organizations
ITotal general government
Six Months)
1999
Exhibit F -3, continued
Fiscal Year)
1999
Variance
Favorable
Budget Actual (Unfavorable) Actual
46,238
Public safety:
6,008
Police:
17,871
Salaries
2,768
Employee benefits
8,180
Purchased services
3,275
Supplies and maintenance
2,000
General and administrative
13)
Total police
Six Months)
1999
Exhibit F -3, continued
Fiscal Year)
1999
Variance
Favorable
Budget Actual (Unfavorable) Actual
46,238 40,230 6,008 80,949
17,871 15,103 2,768 33,522
8,180 4,905 3,275 10,622
2,000 2,013 13) 3,368
3,400 I,177 2,223 5,045
77,689 63,428 14,261 133,506
7,100 7,100 2,100
67,400 29,766 37,634 58,922
11,200 5,077 6,I23 12,511
22,600 19,363 3,237
10,000 10,000 37,725
118,300 54,206 64,094 111,258
10,412 10,412 69,481
23,697 23,697 35,548
8,259 8,259 12,389
1,000 1,000 1,000
1,000 1,000 1,000
70,000 70,000
250
114,368 114,368 119,668
990,550 864,468 126,082 1,542,370
45
357,426 323,253 34,173 603,321
146,720 141,324 5,396 255,034
35,375 32,765 2,610 62,403
15,200 16,470 1,270) 26,984
10,980 11,335 355} 19,654
565,701 525,147 40,554 967,396
Exhibit F -3 continued 1
CTTY OF SEWARD
General Fund '
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
Six Months) (Fiscal Year) ,
1.999 1999
Variance
Favorable
Budget Actual (Unfavorable) Actual
Expenditures, continued:
Public safety, continued:
Jail:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total jail
Animal control:
Purchased services
General and administrative
Total animal control
Fire:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total fire
Volunteer training:
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total volunteer training
Emergency preparedness:
Purchased services
Supplies and maintenance
General and administrative
Total emergency preparedness
1
116,583 109,819 6,764 197,722
49,068 48,798 270 90,552
11,200 9,244 1,956 18,048
4,600 2,577 2,023 6,093
42,501 36,546 5,955 71,635
223,952 206,984 16,968 384,050
26,200 25,508 692 50,631
300 300 _ 570
26,500 25,508 992 51,201
53,697 52,085 1,612 113,834
21,262 21,539 277) 42,975
67,950 67,564 386 120,865
21,250 21,632 382) 30,269
8,200 6,290 1,910 8,884
172,359 169,110 3,249 316,827
5,300
2,250 1,933
5,300
317
5,461
3,852
10,900 7,905 2,995 4,058
10,720 8,139 2,581 17,148
29,170 17,977 11,193 30,519
11 01) 10
1,500 728 772 435
2,090 913 1,177 2,395
3,590 1,652 1,938 2,840
I
I
U
Exhibit F -3, continued
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
Six Months) (Fiscal Year)
1999 1999
Variance
Favorable
Budget Actual (Unfavorable) Actual
Expenditures, continued:
Public safety, continued:
Engineer and utility manager:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
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
S 31,344 40,487 9,143) 71,721
13,894 15,864 1,970) 27,519
6,250 4,846 1,404 10,280
2,300 355 1,945 1,853
3,050 1,597 1,453 3,871
56,838 63,149 6,311) 115,244
311,022 306,978
12,904 13,597 693) 26,005
3,161 1,983 1,178 2,414
3,350 2,743 607 5,779
1,250 666 584 1,573
4,002 840 3,162 11,095
24,667 19,829 4,838 46,866
969)
1,102,777 1,029,356 73,421 1,914,943
47
87,700 104,034 16,334) 197,550
37,322 37,727 405) 66,803
92,400 73,393 19,007 171,778
68,125 68,220 95) 88,790
2,475 2,634 159) 4,386
23,000 20,970 2,030
311,022 306,978 4,044 529,307
61,535 35,546 25,989 80,726
33,377 27,583 5,794 61,226
17,250 17,073 177 38,184
11,350 17,099 5,749) 18,998
1,550 701 849 546
969 969)
125,062 98,971 26,091 199,680
Exhibit F -3 continued 1
CM OF SEWARD
General Fund '
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
Six Months) (Fiscal Year) ,
1999 1999
Variance
Favorable
Budget Actual (Unfavorable) Actual
Expenditures, continued:
Public works, continued:
Municipal building:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total municipal building
Total public works
Parks and recreation:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Capital outlay
Total parks and recreation
Library:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Capital outlay
Total library
Debt service:
Principal
Interest
Total debt service
Total expenditures
Excess of revenues over expenditures
21,930 20,973 957 40,412
8,686 8,864 178) 20,602
55,450 46,391 9,059 56,129
13,500 7,940 5,560 16,974
250 342 92) 432
99,816 84,510 15,306 134,549
535,900 490,459 45,441 863,536
224,481 176,146 48,335 302,873
59,892 51,952 7,940 86,389
93,155 95,064 1,909) 103,007
39,600 25,947 13,653 55,926
35,025 29,642 5,383 45,987
7,000 7,848 848) 3,334
459,153 386,599 72,554 597,516
59,712 57,668 2,044 109,186
25,609 26,457 848) 47,891
12,750 12,763 13) 20,812
21,460 16,862 4,598 34,919
5,005 3,661 1,344 14,524
550
124,536 117,411 7,125 227,882
113,240 113,240 106,475
52,842 52,840 2 108,899
166,082 166,080 2 215,374
3,378,998 3,054,373 324,625 5,361,621
347,168 795,997 448,829 1,313,645
48
F7
Exhibit F -3. continued1
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
Six Months) Fiscal Year)
1999 1999
Variance
Favorable
Budget Actual Unfavorable) Actual
Other financing sources (uses):
Operating transfers from other funds $ 426,579 455,460 28,881 214,268
Operating transfers to other funds 1,219,014 8( 84,140} 334,874 805,282
Net other financing sources (uses) (792,435) 4( 28,680} 363,755 591,014)
Excess of revenues and other financing sources
over (under) expenditures and other uses $ 4445 367,317 812,584 722,631
Beginning fund balance 3,577,473 2,932,042
Residual equity transfers to other funds 3( 31,528) 77,200)
Ending fund balance $ 3,613,262 3,577,473
1
1
1
49
1 ro
c
re
PE
SPECIAL REVENUE FUNDS
ro
c
The Special Revenue Funds are used to account for revenues from specific sources,
which are restricted to finance particular functions and activities. Funding sources
rinclude external grants and operating transfers from the General Fund.
u
t
l
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for expenditures associated with dedicated or restricted
revenue sources.
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.
Public Library — To account for the costs of administering the state public library
grant, including the purchase of library materials, supplies and equipment.
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.
Flood Mitigation — To account for the costs of mitigating potential flood damage
from the Resurrection River and Japanese Creek areas. This project represents a
collaboration between the Natural Resources Conservation Service and the City, and
is intended to conserve and improve soil and water resources, and to assist the
agencies in developing a flood mitigation plan.
High Risk Traffic Enforcement — To account for the costs of improving traffic safety
enforcement in the community, including the purchase of radar speed detection
equipment and video surveillance systems, as well as providing a radar certification
course.
51
SPECIAL REVENUE FUNDS, continued
Seward Comprehensive Plan — To account for the costs of updating the Seward ,
Comprehensive Plan and preparing and producing the Comprehensive Plan
document.
Historic Records Preservation Phase II -- Supplements the prior preservation grant. '
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. ,
Seward Life Action Council Pass- Through — To account for a pass - through grant to
the Seward Life Action Council, for the purpose of improving handicapped access to
their health care facilities.
J
n
L
52 1
i
THIS PAGE LEFT BLANK INTENTIONALLY
53
Exhibit G -1
CITY OF SEWARD
Special Revenue Funds
Combining Balance Sheet
December 31, 1999
with Comparative Totals for June 30, 1999
Seward
Life
Action
Other Council Totals
Parks and Public Public General Pass - December 31, June 30,
Asse Recreation Library Safe Government Throu 1999 1999
Cash and investments 23,775 1,430 2,298 28,340 545 56,388 57,700
Grants receivable:
Federal 4,654 65,210 - 46,101 115,965 66,850
State 1,272 1,272 15,119
28,429 1,430 67,508 29,612 46,646 173,625 139,669
Liabilities and Fund Balances
Liabilities:
Accounts payable 997 46,646 47,643 44,514
Deferred revenue 6,703 1,430 - 26,934 35,067 32,026
Due to other funds 65,210 - 65,210 33,809
Total liabilities 7,700 1,430 65,210 26,934 46,646 147,920 110,349
Fund balances - unreserved
and undesignated 20,729 2,298 2,678 25,705 29,320
28,429 1,434 67,508 29,612 46,646 173,625 139,669
1
1
1
54
1
u
1
Revenues:
Federal grants
State grants
Miscellaneous
CITY OF SEWARD
Special Revenue Funds
Combining Statemeit of Revenues, Expenditures
and Chaages in Fund BalMoea
Six Months Ended December 31, 1999
with Comparative Totals for Fiscal Year Ended June 30, 1999
Total revenues
Expenditures:
Salaries and employee benefits
Contracted services
Supplies
Equipment
Pass - through payments
Other services and charges
Total expenditures
Excess of revenues over (under)
expenditures
Other financing sources - operating transfers
from other funds
Excess of revenues and other financing
sources over (under) expenditures
Beginning fund balances
Ending fund balances
Seward
Life
Action Totals
Other Council (Fiscal
P
Rmteadon
arks and Public P G Pass Months) Year)
1 s uch JQ22 .L2Q2
4,588 - 66,261 - - 70,849 67,709
145 - 1,836 104,5I1 106,492 34,500
2.37 ¢ . L 1Q6,853 109,242 _ 6,932
6.964 145 66,261 - 1.849 211,364 286,583 109,141
3,078 1.318 587 - 4,983 8,099
6 >000 64,943 247 - 71,190 24,130
1,143 474 771 - 2,388 38,860
20,174
203,952 203,952 45,869
1,331 145 87 244 7,412 9,219 6,523
1^ 1,552 145 66,822 1,849 211,364 291.732 143,655
4,588) 561) 5.149) 34,514)
1.534 1,534 31,682
4,588) 973 3.615) 2,832)
25,317 1,325 2,678 - 29.320 32,152
20,729 2,298 2,678 - 25,705 29,320
55
CTY OF SEWARD
Parks and Recreation Special Revenue Funds
Combining Balance Sheet
December 31, 1999
Assets
Cash and investments
Grants receivable - federal
Liabilities and Fund Balances
Liabilities:
Accounts payable
Deferred revenue
Total liabilities
Fund balances - unreserved
and undesignated
56
Exhibit G -3
Two
Bicycle Litter Lakes
Safety Control Park Totals
169 6,703 16,903 23,775
49654 4,654
169 6,703 21,557 28,429
997 997
6,703 - 6,703
6,703 997 7,700
169 - 20,560 20,729
169 6,703 21,557 28,429
Exhibit G4
CITY .OF SEWARD
Parks and Recreation Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Six Months Ended December 31, 1999
Two
Bicycle Litter Lakes
agfeM Control Park Totals
Revenues:
Federal grants $ - 4,588 4,588
Miscellaneous - 2,376 2,376
Total revenues - 2,376 4,588 6,964
Expenditures:
Salaries and employee benefits - 2,327 751 3,078
Contracted services - 6,000 6,000
Supplies - 33 1,110 1,143
Other services and charges - 16 1,315 1,331
Total expenditures - 2,376 9,176 11,552
Excess of revenues over
under) expenditures - 4,588) 4,588)
Beginning fund balances 169 25,148 25,317
Ending fund balances $ 169 20,560 20,729
57
1
CITY OF SEWARD
Public Safety Special Revenue Funds
Combining Balance Sheet
December 31, 1999
Asse
Cash and investments
Grants receivable - federal
Liabilities and Fund Balances
Liabilities - due to other funds
Fund balances - unreserved and
undesignated
High Risk
Police Flood Traffic
Fund MitiEation Enforcement
48 - 2,250
65,210 -
Totals
2,298
65,210
48 65,210 2,250 67,508
65,210 - 65,210
48 - 2,250 2,298
48 65,210 2,250 67,508
58
Exhibit G -5
i
i
t
i
i
CITY OF SEWARD
Public Safety Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances (Deficit)
Six Months Ended December 31, 1999
Revenues - federal grants S
Expenditures:
Salaries and employee benefits
Contracted services
Supplies
Other services and charges
Total expenditures
Excess of revenues over (under)
expenditures
Other financing sources -
operating transfers from other funds
Excess of revenues and other
financing sources over (under)
Emergency High Risk
Police Shelter Flood Traffic
Fund DARE Series Mitiption Enforcement Totals
66,261 - 66,261
1,318 - 1,318
64,943 - 64,943
474 - - 474
27 60 - - - 87
27 534 - 66,261 - 66,822
27) (534) - - - (561)
534 1,000 - - 1,534
expenditures (27) - 11000 - - 973
Beginning fund balances (deficit) 75 - (1,000 - 2,250 1,325
Ending fund balances $ 48 - - - 2,250 2,298
59
Exhibit G -7
CITY OF SEWARD
Other General Government Special Revenue Funds
Combining Balance Sheet
December 31, 1999
Seward Historic
Compre- Records Seward
pensive Preservation Community
Assets Plan Phase lI Cemetery Totals
Cash and investments $ 26,934 616 790 28,340
Grants receivable - State - - 1,272 1,272
26,934 616 2,062 29,612
1
Liabilities and Fund Balances
Liabilities - deferred revenue 26,934 - 26,934
Fund balances - unreserved and
undesignated - 616 2,062 2,678
26,934 2,062 29,612616
1
60
t
i
CITY OF SEWARD
Other General Government Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Six Months Ended December 31, 1999
Revenues:
State grants
Miscellaneous
Total revenues
Expenditures:
Salaries and employee benefits
Contracted services
Supplies
Other services and charges
Total expenditures
Excess of revenues over
expenditures
Beginning fund balances
Ending fund balances
Exhibit G -8
Seward Historic
Compre- Records Seward
hensive Preservation Community
Plan Phase II Cemetery Totals
1,836 1,836
13 13
13 1,836 1,849
587 587
247 247
13 758 771
244 244
13 1,836 1,849
616 2,062 2,678
616 2,062 2,678
61
THIS PAGE LEFT BLANK INTENTIONALLY 1
62 1
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.
t
i
i
e
s
Exhibit H -1
CITY OF SEWARD
Debt Service Fund
Balance Sheet
December 31, 1999
with Comparative Amounts for June 30, 1999
December 31, June 30,
Assets 1 999 1999
Cash and investments $ 42 3095
Fund Balance
Fund balance - reserved for debt service
63
429,829 33,095.
CITY OF SEWARD
Debt Service Fund
Statement of Revenues, Expenditures
and Changes in Fund Balance
Six Months Ended December 31, 1999
with Comparative Amounts for Fiscal Year Ended June 30, 1999
Revenues - investment income
Expenditures:
Interest payments
Principal payments
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources - operating transfers from other funds
Exhibit H -2
Six Months) (Fiscal Year)
1999 1999
10,168 14,070
Excess of revenues and other financing sources over expenditures
Beginning fund balance
Ending fund balance
64
198,978 401,893
205,000 175,000
403,978 576,893
393,810) 562,823)
487,544 656,586
93,734 93,763
336,095 242,332
S 4 29_ 336,095
s
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 unsure 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.
F
Li
CAPITAL PROJECT FUNDS
Capital Project Funds are established to account for the resources expended to acquire assets of a
trelatively permanent nature.
Gateway Subdivision — To account for the cost of acquiring lots and developing a
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.
Ballfield — To account for the cost of a new community softball field called
Citizens Field." Funding is provided by the City.
Campground ADA and Waterfront Improvements — To account for the costs of
providing wheelchair accessible camping and parking sites at Waterfront Park, as
well as to construct a recreational vehicle sewer dump station.
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.
Firehose Replacement -- To account for the cost of fire hose replacement.
911 Equipment Replacement — To account for the costs of upgrading the City's 911
emergency telephone equipment, including the purchase of recording equipment.
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.
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.
Streets and Sidewalks — To account for the cost of repairing and installing new
sections of sidewalks, curbs and gutters, and to improve handicapped accessibility of
sidewalks.
I
1 65
CAPITAL PROJECT FUNDS, continued ,
Hospital Construction -- To account for the cost of constructing the new hospital. IFundingisprovidedprimarilybythe1996hospitalbondissuefor $7.5 million.
Fuel Tank — To account for the costs of removing an underground storage tank used '
by city hall and the fire hall, and replacing that fuel tank above ground. The project
also includes building a housing structure to secure the tank.
Firehall Roof Repair — To account for the cost of repairing and/or replacing the roof '
at the firchall.
Forest Acres Roads — To account for the portion of the Forest Acres special
assessment district related to the construction of roads, with said cost to be assessed
to affected property owners. I
Library Automation — To account for the costs of improving the information
technology resources at the Seward Community Library, such as installing an ,
automated cataloging and circulation system, and providing improved access to the
Internet for patron use.
Library gParkin Lot — To account for the cost of paving the library parking lot and '
adding handicapped accessibility to the building. '
C
I
66 '
I
L
THIS PAGE LEFT BLANK INTENTIONALLY
67
Exhibit I -1 '
CITY OF SEWARD
Capital Project Funds ,
Combining Balance Sheet
December 31, 1999
with Comparative Totals for ,Tune 30, 1999 '
68
Other Totals
Parks and Public General December 31. June 30,
Assets Recreation Safe Govementrn Libra 1999 1999
Cash and investments 122,677 780,065 9,712 912,454 1,726,168
Grants receivable - State 47,094 32,539 27,651 2,417 109,701 3,682
Other receivables 30,236 30,236 1,123
169,771 32,539 837,952 12,129 1.052,391 1,730,973
Liabilities and Fund Balances'
Liabilities:
Accounts payable 23,000 30,037 1,144 54,181 387,525
Deferred revenue 9,796 9,796 21,721
Due to other funds 16,630 31,358 22,308 70,296 3,035
Total liabilities 49,426 31,358 52,345 1,144 134,273 412,281
1Fundbalances - unreserved - designated
for capital improvements 120,345 1,181 785,607 10,985 918,118 1,318,692
169,771 32,539 837,952 12,129 1,052,391 1,730,973
68
I
CITY OF SEWARD
Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Six Months Ended December 31, 1999
with Comparative Totals for Fiscal Year Ended June 30, 1999
Revenues:
Federal grants
State grants
Land sales
Investment income
Miscellaneous
Total revenues
Expenditures:
Salaries and employee benefits
Contracted services
Equipment
Land
Supplies
Pass - through payments
Other services and charges
Total expenditures
Excess of revenues over
under) expenditures
1 Other financing sources (uses): -
Operating transfers from other funds 7,393 222,778 14,400 244,571 331P 308
Operating transfers to other funds - - 100,000 - 100,000 278,357
Net other financing sources (uses) - 79393 122,778 14,400 144,571 52,951
Exhibit I -2
45,614) (7,663) (91,673) (6,588) (151,538) (446,558)
Excess of revenues and other
financing sources over (under)
expenditures and other uses (45,614) (270) 31,105 7,812 (6,967) (393,607)
Beginning fund balances 165,959 1,451 754,502 3,173 925,085 1,318,692
Ending fund balances $ 120,345 1,181 785,607 10,985 918,118 925,085
69
Totals
Other
Parks and Public General Six Months) (Fiscal Year)
Recreation Le& Government Libras 1999 1999
4,230
74,047 41,406 185,312 12,495 313,260 216,862
254,085
19,200 19,200 43,646
4,727
74,047 41,406 204,512 12,495 332,460 523,550
17,612 219 17,831 14,168
13,796 101,223 11,095 126,114 159,957
33,124 46,350 4,481 4,695 88,650 50,961
24,096 27,000 51,096
19,615 181 2,300 1,476 23,572 143,016
149,826 149,826 571,188
11,418 2,538 11,355 1,598 26,909 30,818
119,661 49,069 296,185 19,083 483,998 970,108
45,614) (7,663) (91,673) (6,588) (151,538) (446,558)
Excess of revenues and other
financing sources over (under)
expenditures and other uses (45,614) (270) 31,105 7,812 (6,967) (393,607)
Beginning fund balances 165,959 1,451 754,502 3,173 925,085 1,318,692
Ending fund balances $ 120,345 1,181 785,607 10,985 918,118 925,085
69
Exhibit l 3
CITY OF SEWARD
Parks and Recreation Capital Project Funds
Combining Balance Sheet
December 31, 1999
Campground
ADA and City
Gateway Bike Path Waterfront Play- Hoben
AR OAA Subdivision Continuatio Rallfield Improvements grounder Park Totals
Cash and investments S 20,378 11,587 18,542 20,842 51,328 122,677
Grants receivable - State 31,653 - - 15,441 47,094
S 31,653 20,378 11,587 33,983 20,842 51,328 169,771
Lilhilities an s i
Liabilities:
Accounts payable 23,000 - - 23,000
Deferred revenue 9,449 - 347 9,796
Due to other funds 16,630 - - 16,630
Total liabilities 39,630 9,449 - 347 49,426
Fund balances (deficit) - unreserved -
designated for capital improvements 7,977) 10,929 11,587 33,983 20,842 50,981 120,345
S 31,653 2O_378 11,587 33,983 20,842 51,328 169,771
1
1
70
it I.4
CITY OF SEWARD
Parks and Recreation Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances (Deficit)
Six Months Ended December 31, 1999
Campground
ADA and City
Gateway Bike Path Waterfront Play- Hoben
Subdivision Continuation Ball el LMpLQy am grounds Efflk T-,
Revenues - State grants 43,249 310 - 30,445 43 74,047
Expenditures:
Salaries and employee benefits 23 234 13,528 3,781 46 17,612
Contracted services 10,395 3,401 13,7%
Equipment 22,411 - - 10,713 33,124
Land 24,096 -
24,096
Supplies 100 17,967 1,548 19,615
Other services and charges 4,652 34 - 4,717 2,010 5 11,418
Total expenditures 51,182 368 46,607 21,453 51 119,661
Excess of revenues
over(under)expenditures 7,933) (58) - (16,162) 21,453) 8) 45,614)
Beginning fund balances (deficit) 44 10,987 11,587 50,145 42,295 50,989 165,959
Ending fund balances (deficit) S 7,977 10,929 11,587 33,983 20.842 50,981 12- 0
1
71
Exhibit I -5
CITY OF SEWARD
Public Safety Capital Project Funds
Combining Balance Sheet
December 31,1999
Firehose 911
Replace- Equipment
Assets ment Replacement LOIALS
Grants receivable - State $ 30,065 2,474 32,539
Liabilities and Fund Balances
Liabilities - due to other funds
Fund balances - unreserved - designated
for capital improvements
72
29,708 1,650 31,358
357 824 1,181
30,065 2,474 32,539
ffff OF SEWARD
Public Safety Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Six Months Ended December 31, 1999
Revenues - State grants
Expenditures:
Equipment
Supplies
Other services and charges
Total expenditures
Excess of revenues
over (under) expenditures
Other financing sources - operating transfers
from other funds
Firehose 911
Replace- Equipment
mw Replacement Totals
S 38,065 3,341 41,406
Excess of revenues and other
financing sources over (under) expenditures
Beginning fund balances
Ending fund balances
73
42,772 3,578 46,350
181 181
2,148 390 2,538
45,101 3,968 49,069
7,036) 627) 7,663)
7,393 7,393
357 627) 270)
1,451 1,451
S 357 824 1,181
Exhibit 1
Exhibit 1 -7
CITY OF SEWARD
Other General Government Capital Project Funds
Combining Balance Sheet
December 31, 1999
Seward
Association
for
Advancement Fireball
of Marine Capital Streets and Hospital Roof
AU Science Acg isuitionSidewalksConstructi2nEuelTankRe°air Totals
Cash and investments S - 290,013 419,577 10,475 60,000 780,065
Grants receivable - State - 27,651 27,651
Other receivables 30,236 30,236
S 30,236 290,013 27,651 419,577 10,475 60,000 837,952
Liabilities and F
Liabilities:
Accounts payable 30,037 - - - - - 30,037
Due to other funds 199 - 22,109 - - 22,308
Total liabilities 30,236 - 22,109 - - - 52,345
Fund balances - unreserved - designated
for capital improvements - 290,013 5,542 419,577 10,475 60,000 785,607
S 30,236 290,013 27,651 419,577 10,475 60,000 837,952
74
i
t
F I i.L -Q
CITY Off' SEWARD
Other General Government Capital Project Fumb
Combining Statentetrt of Rr^%w a, ExperdittaTes
utd Cbaupes in Futd Balances
Sic Monde Ended Deoernber 31, 1999
wd
Anocation
for
Advancement Firchall Forest
Of Marine Capital Streets and Hospital Roof Acres
Sc Sidcwalb (Cnnctn r± inn Fuel T How KQ d i
Revenues:
State grants S 150,748 - 34,564 - 185.312
Investment income 8,010 - 11,190 19.200
ToW revenues 150,748 8,010 34,561 11,190 204,512
Expenditures:
Contramd services 85 15,423 101,223
Equipment
80D
4,481 4,481
Land 27,000 27,000
Supplies 2,300 2,300
Pass - through payments 149,826 - 149,826
Other services and charges 922 8.580 230 1,623 11,355
Total expenditures 150,748 31,491 94,380 2,530 17,046 296,185
Excess of revenues
over (under)expenditttres 23,471) (59,816) 11,190 2,530) - 17,046) 91,673)
Other financing sources (uses):
Operating transfers from Other funds 105,732 40-000 - 60:000 17,046 222,778
Operating transfers to other funds 1( 00,000) 1_ 00,000)
Net other financing sources (uses) 5,732 40,000 60,000 17.046 122.778
Excess of revenues and other
financing sources over (under)
expenditures and other uses 17,739) (19,816) 11,190 2,530) 60,000 31,105
Beginning fund balances 307,752 25,358 408.387 13,005 754,502
Ending fund balances S - 290,013 5,542 419,577 10,475 60,000 785,607
1
1
75
CITY OF SEWARD
Public Library Capital Project Funds
Balance Sheet
December 31, 1999
Assets
Cash and investments
Grants receivable - State
Liabilities and Fund Balance
Liabilities - accounts payable
Fund balance - unreserved - designated for
capital improvements
76
Library
Automation
9,712
2,417
12,129
1,144
10,985
12,129
Exhibit 1 -9
CITY OF SEWARD
Public Library Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Six Months Ended December 31, 1999
Revenues - State grants
Expenditures:
Salaries and employee benefits
Contracted services
Equipment
Supplies
Other services and charges
Total expenditures
Excess of revenues
over (under) expenditures
Other financing sources - operating
transfers from other funds
Excess of revenues and other financing
sources over (under) expenditures
Beginning fund balances
Ending fund balances
77
Exhibit I -10
Library
Library Parking
Automation Lot Totals
2,671 9,824 12,495
219 219
1,088 10,007 11,095
4,695 4,695
1,096 380 1,476
537 1,061 1,598
7,416 11,667 1 9,083
4,745) (1,843) (6,588)
14,400 - 14,400
9,655 (1,843) 7,812
1,330 1,843 3,173
10,985 _ 10,985
I
ENTERPRISE FUNDS
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.
7
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 within the
Small Boat Harbor basin to the public.
Seward Marine Industrial Center (SMIC) — To account for the provision of marine-
related services to the public on the east side of Resurrection Bay.
Parking Revenue — To account for the provision of public parking services.
Assets
Current assets:
Cash and investments
Receivables:
Accounts
Grants
Other
Less allowance for doubtful receivables
Net receivables
Cash held by fiscal agent
Inventory
Due from other funds
Total current assets
Restricted assets - cash and investments restricted
for bond retirement
Assessments receivable
Propert), 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
Deferred charges - unamortized debt issuance costs
307,205 - - - - 307.205 307,205
78,877 147,448 53,578 - - 279,903 3.952
39,387,732 15,021,021
F.1Siti4itl 1
376,174
CITY OF 5EWARD
115368,339
16,276,762) 6,5.(_10,159)
Enterprise Funds
15,7( 75.402) 3'8071 140.7 39.366.470)
Combining Balance Shat
23,110,970 8,510,862 6,864,024 36,382,112
December 31, 1999
75,240,335 76.001.869
148,594
with Comparative Totals for June 30, 1999
285.689 454,725 818,358
23,259,564 8,531,304 7,149,713 36.382,112 372,367
Totals
76,820,227
Water Parking December 31, June 30,
Usstri c and Sewer Had= 21& Revenu 922 1999
S 4,527,782 1,794,784 3,738,350 91.818 10.152.734 9,305,049
29,568,058 10,534,827 11.152,027 36.433,681
707,088 40328 228.259 32,289 - 1,007,764 1,181,301
9,032 9,032 8.248
3,656 - - 3,656 17,518
31,819} (5.158) (26.905) 63,882) 82,4751
678,925 34,970 210,386 32.289 - 956.570 1.124.592
155,500 - 155.500
528,297 26,321 - 554,618 563,167
5,890,504 1,856,075 3,948,736 32,289 91,818 11,819,422
46,713
11,039.521
Propert), 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
Deferred charges - unamortized debt issuance costs
307,205 - - - - 307.205 307,205
78,877 147,448 53,578 - - 279,903 3.952
39,387,732 15,021,021 9.096.698 52.157,514 376,174 116,039.139 115368,339
16,276,762) 6,5.(_10,159) 2.232,674) 15,7( 75.402) 3'8071 140.7 39.366.470)
23,110,970 8,510,862 6,864,024 36,382,112 372,367 75,240,335 76.001.869
148,594 20,442 285.689 454,725 818,358
23,259,564 8,531,304 7,149,713 36.382,112 372,367 75,695.060 76,820,227
55,22331,908 19,280 51.188
29,568,058 10,534,827 11.152,027 36.433,681 464,185 68.152,778 88226.128
BO
Exhibit 1 -1. continued
CITY OF SEWARD
Enterprise Funds
Combining Balance Sheet, ceotinued
Totals
Water parking December 31, June 30,
Liabilities an4 FUnd Eauity Electric and S w HKIM buy IM 99
Liabilities:
Current liabilities:
Accounts payable S 188,715 12,597 32,122 3,591 3,932 240.957 259,772
Current ponton.
Bonds payable 700,000 135,878 835,878 811,760
Notes payable 40,636 40,636 39,012
Capital lease obligations 65,000 65,000 60,000
Retirement incentive program payable 22,978 22,978 12,317
Customer deposits 150,096 150,096 191,462
Accrued annual leave 59,091 13,597 37,673 110,361 111,519
Accrued interest 58,051 5,291 14,574 77,916 102,012
Other accrued liabilities 19,6% 5,758 15,682 1,103 42.239 36,496
Deferred revenue 207,766 3,470,475 24,328 3,702,569 3,411,459
Due to other funds 20,688 20,688 46,713
Total current liabilities 1,383,415 77.879 3,578.930 265,162 3,932 5,309,318 5,082,522
Deferred revenue - AJaska Railroad Corporation
loan receivable 107,312 107,312 107,312
Long -tern debt, excluding current portion:
Bonds payable 5,240,000 1,181,723 6.421.723 7,012,600
Less unamorttzed deferred amount on refunding 149,132) 127,906) 277.038) 298,119)
Notes payable 713,842 713,942 754,478
Capital lease obligations 410,000 410,000 475,000
Retirement incentive program payable 21321 21.321 12,317
Total long -term debt 5,090,868 713,842 21,321 1,463.817 7,2891848 7,956,276
Total liabilities 6,474.283 791,721 3,707,563 1,728,979 3,932 12,706,478 13,146,110
Fund equity:
Contributed capital
Less accumulated amortization
22,923,355
7,317,442)
11,800,940 8,268,658
5.540,809} (1,440
48,283,435
14,181,822)
376,174 91,652,562 90,489,073
28,480,089) (27,265,946)
Net contributed capita) 15,605,913 6,260,131 6,828,642 34,101,613 376,174 63,172,473 63,223,127
Retained earnings - unreserved 7,487,862 3,482,975 615122 603,089 84,079 12,273.827 11.856,891
Total fund equity 23,093,775 9,743,106 7,444,464 34,704,702 460,253 75.446,300 75.080,018
S 29,568,058 10,534,827 11,152,027 36,433,681 464,185 88,152.778 88,226,128
al
Irrry Off' SEWARU
Operating revenues
Operating expenses
Earnings from operations before
depreciation
1 Depreciation
Enterprise Funds
Combining Statement of Revenues,
Expenses and Changes in Retained Earnings
Six Months Ended December 31, 1999
with Comparative Totals for Fiscal Year Ended June 30, 1999
Earnings (loss) from operations
13onoperating revenues (expenses):
Gain ( loss) on disposal of property and equipment
Investment income
Land lease
Interest expense
Other revenues
Net nonoperating revenues (expenses)
Earnings (loss) before operating
transfers
Operating transfers from (to) other funds
Water
Electric get Sewer UK
S 3,262,274 775.207 795,662
2.208.190 474.328 615.256
Net earnings ( loss)
Increase in retained eamings for capitalized
assets constructed in other funds
Increase (decrease) in retained earnings for reclasses
from (to) contributed capital
Amortization of contributed capital
Increase in retained earnings
1 Beginning retained earnings
Prior period adjustment
Residual equity transfers from (to) other funds
Ending retained earnings
1,054,084
Totals
Parking Six Months) (Fiscal Year)
SMIC Revenue 192-9 1999
184,889 78,270 5.096.302 9,877,614
120,716 33.507 3,451.997 6,695.928
1,054,084 300,879 180,406 64,173 44,763 1,644,305 3,181,686
608.238 183.835 191.829 565.420 3.807 1,553.129 2919,718
176,710 172,828 43,381 1,127.088
445,846 117.044 11,423) 501,247) 40.956 91,176 261.968
10,617) 10.617) 64,470
139,852 49,431 100,864 3,127 2,425 295,699 325,641
615,822 603.089 84.079 12.273A27 11.573,710
175.000
185.641) 17,007) 65,530) 268.178) 601,593)
101 101 198,311
56.305) 32.424 100.864 62.403) 2.425 17,005 161.929
389,541 149,468 89,441 563,650) 43,381 108,181 423,797
31[ 7.500) 76,840) ( .54.037) 243.408 204.969) 150,205
72,041 72,628 35.404 320,242) 43,381 96,788) 273,592
123,100
2,100 48,220 40,587) 9,733
392,451 146.729 181,893 493.070 1.214,143 2.265,400
466,592 267,577 176,710 172,828 43,381 1,127.088 2,662,092
7,021,270 3,216904 1,294,838 40,698 11,573,710 9,279,162
283,181)
1.506) 8. 55,726) 430,261 426.971 84,363
7.487.862 3.482.975 615,822 603.089 84.079 12.273A27 11.573,710
93
Exhibit J -3 '
CITY OF SEWARD
Enterprise Funds ,
Combining Statement of Cash Flows
Six Months Ended December 31, 1999
with Comparative Totals for Fiscal Year Ended June 30, 1999
Cash flows from operating activities:
Earnings ( loss) from operations
Adjustments to reconcile earnings (loss) from
operations to net cash flows from operating
activities:
Depreciation
Other nonoperating revenues
Increase (decrease) in allowance for
doubtful receivables
Increase) decrease in assets:
Receivables
Prepaid expenses
inventory
Increase (decrease) in liabilities:
Accounts payable
Customer deposits
Accrued annual ieave
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 to outer funds
Operating transfers from other funds
Residual equity transfers to other funds
Decrease in advances to other funds
Decrease in advances from other funds
Receipts on loan to Alaska Railroad Corporation
Net cash flows from noncapital
financing activities
84
t
Totals
Water Parking Six Months)
Fiscal
Year)
Electric and Sewc Hwbor SMIC R e v n e 1999 1999
S 445,846 117,044 11,423) 501,247) 40,956 91.176 261,968
608,238 183,835 191,829 565,420 3,807 1,553,129 2,919,718
3 3 372,748
401) 2.129) 16,063 13,533 38,853)
6,042 58,799 144,982 24,906) 1,698 186.615 29,724)
11,537
1,372) 9,921 8.549 454)
16,499) 6,310) 1,735) 5,323) 3,667 26,200) 186,450)
41,366) 41.366) 695
6,421 1,100 8,679) 1.158) 5.966
7,501 568 1,975 322 4,623) 5,743 5,552
26,025) 26.025) 70,472)
19,108 4,498) 14,610
19,665 19,665 12,317)
1,014.413 362,828 371.785 3,743 45.505 1.798274 3,239,914
317,500) 106,335) 54,037) 7,083) 484,955) 150,205)
29,495 250,491 279,986
1,506) 49,291) 50,797) 84,363)
19,712
19,712)
136,998
317,500 ) 78.346) 103,328) 243,408 255,766) 97.570)
84
t
CITY OF SEWARD
Fnterprise Funds
Combining Ste txtu t of Cash Flows, continued
Cash flows from capital and related financing activities:
Decrease in due from other funds $
Principal payments on long -term debt
Interest payments on long-term debt
Cash held by fiscal agent
Acquisition of property, plant and equipment
Special assessments
Proceeds from sale of property and equipment
Contributed capital
Increase (decrease) in 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 (decrease) in cash and investments
Beginning ca bb mid invewirents
Ending cash and investments
Reconciliation of cash and investments to balance sheet:
Cash and investntenls:
Current assets
Restricted assets
Waeer
FlecIli+r and Sewer
46,713
435,000) (39,012)
174,348) (34,291)
155,500) -
234,733) (160,958)
2,632 -
83,350 124.645
6,681)
98 -
9( 20 .1182) 6( 2.903)
Hi? Mac
Exhibit J -3. continued
Totals
Fiscal
Parking (Six Months) Year)
Revenue 1222 1999
191,759) -
58,519) -
62,683) - -
305,524
242.841 (250,278)
46,713 46,713
665.771) (845,979)
267,158) (549,921)
155,500) -
458.374) (1.072,692)
2,632 1.956
87,727
513,519 485,120
6,681) 3,319,495
98 563
990,522 1.472.982
139.852 49,431 100.864 3,127 2,425 295,699 325.641
83,417) 271,010 612,162 47.930 847,685 4,940,967
4.918.404 1,523,774 3.126,188 41888 9.612.254 4.671.287
S 4.834.987 1.794.784 3,738,350 91,818 10.459,939 9.612.254
4,527,782 1,794,784 3.738,350
307,205 -
S 4,834,987 1,794,784 3,738.350
91.818 10,152,734 9,305,049
307,205 307,205
91,818 10,459,939 9,612.254
85
Noncash capital and related financing activities:
Increase in contributed capital and
assessments receivable S 76,245 147,448 53,578 277,271 -
Increases (decreases) resulting from transfers from
Harbor Fund to SM1C Fund:
Current assets and deferred debt issuance costs 11,188) 11.188 - -
Net property, plant and equipment
Current liabilities
S 36,947.531)
84,845)
36,947,531
84.845 -
Long -term debt S 1{ 848,930) 1,848330 - -
Net contributed capital S 34,594,683) 34,594.683 - - -
Retained earnings 4. 30,261) 430,261 - -
Increase (decrease) in net property, plant and equipment
resulting from transfer from Harbor Fund to
Parking Fund S 376.174) 376,174 - -
Corrections and reclassifications to:
Contributed capital 48,220 48,220 (598,157)
Property, plant and equipment
Increase in property, plant and equipment, and con-
S 568,483)
tributed capital resulting from transfer of Harbor
assets from State 5 1,479,397
85
CM OF SEWARD
Electric Enterprise Fund
Balance Sheet
December 31, 1999
with Comparative Amounts for June 30, 1999
Asset.
Current assets:
Cash and investments
Receivables:
Accounts
Other
Less allowance for doubtful receivables
Net receivables
Cash held by fiscal agent
Inventory
Total current assets
Restricted assets - cash and investments restricted
for bond retirement
Assessments receivable
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
Deferred charges - unarnortized debt issuance costs
86
December 31,
1999
Exhibit J-4
June 30,
19999
4,527,782 4,611,199
707,088 710,744
3,656 6,042
31,8 32,220)
678,925 684,566
155,500
528,297 526,925
5,890,504 5,822,690
307,205 307,205
78,877 3,952
39,387,732 39,101,480
16,276,762 15,727,354
23,110,970 23,374,121
148,594 264,565
23,259,564 23,643,686
31,908 34,809
29,568,058 29,812,342
z
i
CITY OF SEWARD
Electric Enterprise Fund
Balance Sheet, continued
Liabilities and Fund Eguity
Liabilities:
Current liabilities:
Accounts payable
Current portion of bonds payable
Customer deposits
Accrued annual leave
Accrued interest
Other accrued liabilities
Deferred revenue
Total current liabilities
Long -term debt - bonds payable, excluding
current portion
Less unamortized deferred amount on refunding
Net long -term debt
Total liabilities
Fund equity:
Contributed capital
Less accumulated amortization
Net contributed capital
Retained earnings - unreserved
Total fund equity
87
Exhibit J-4. continued
December 31, June 30,
1999 1999
188,715 205,214
700,000 680,000
150,096 191,462
59,091 52,670
58,051 63,216
19,696 12,195
207,766 214,447
1,383,415 1,419,204
5,240,000 5,695,000
149,132 (162,689)
5,090,868 5,532,311
6,474,283 6,951,515
22,923,355 22,764,548
7,317,442 (6,924,991)
15,605,913 15,839,557
7,487,862 7,021,270
23,093,775 22,860,827
29,5_ 6i 8 29,8
Exhibit J-5c
CIT Y OF SEWARU
Electric Enterprise Fund
Statement of Reventtes, Expenses
and Changes in Retained Earnings
Six Months Ended December 31, 1999
with Comparative Amounts for Fiscal Year Ended June 30, 1999
Six Months) Fiscal Year)
19919 1m
Operating revenues:
Residential 904,881 1.871.366
Small general service 639,862 1,389,337
Large general service 1,404,185 2,628,071
Industrial 160,074 315,934
Harbor power 48,966 119,599
Street and yard lights 31,485 66,272
Miscellaneous 72,821 147,530
Total operating revenues 3262.274 6,538,109
Operating expenses:
Power 1,092,957 2,314,527
Distribution 207,410 237,088
Administration and general 907,823 1,615,963
Total operating expenses 21208,190 4,167.578
Earnings from operations before depreciation 1,054,084 2.370,531
Depreciation 608,238 1,195,174
Earnings from operations 445,846 1,175,357
Nonoperating revenues (expenses):
Loss on disposal of property and equipment 10,617) 23.257)
Investment income 139,852 182,204
Interest expense 185,641) 396,113)
Penalties and interest on assessments 98 563
Othcrrevenues 3 350
Net nonoperating revenues (expenses) 5( 6,305) 2f36,253)
Earnings before operating transfers 389,541 939,104
Operating transfers to other funds 3_ (_ 17.500) 12,500}
Net earnings 72,041 926,604
Increase in retained earnings for reclasses from contributed capital 2,100
Amortization of contributed capital 392,451 779,519
Increase in retained earnings 466,592 1,706,123
Beginning retained earnings 7,02I,270 5,346,567
Residual equity transfers to other funds 31,420)
Ending retained earnings S 7,487,862 7.021,270
88
1
I-I
L
1
1
Crff OF SEWAIiID
Electric Enterprise Fund
Statetrwd of Cash Flows
Six Months Ended Der tuber 31, 1994
with Comparative Amounts for Fiscal Year Ended Juste 30, 1999
Cash flows from operating activities:
Earnings from operations
Adjustments to reconcile earnings from operations to net
cash flows from operating activities:
Depreciation
Other nonoperating revenues
Decrease in allowance for doubtful receivables
Increase) decrease in assets:
Receivables
Prepaid expenses
Inventory
Increase (decrease) in liabilities:
Accounts payable
Customer deposits
Accrued annual leave
Other accrued liabilities
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Operating transfers to other funds
Residual equity transfers to other funds
Decrease in advances to other funds
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
Cash held by fiscal agent
Acquisition of property, plant and equipment
Special assessments
Contributed capital
Increase (decrease) in 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 (decrease) in cash and investments
Beginning cash and investments
Ending cash and investments
Six Months) (Fiscal Year)
222 im
S 445,846 1,175,357
608,238 1,195,174
3 350
401) (14,700)
6,042 (30,316)
11,537
1,372) (3,151)
16,499) (35,239)
41,366)
Reconciliation of cash and investments to balance sheet:
Cash and investments:
7,501
Current assets
1,014,413
Restricted assets
1
1,956
83,350
Noncash capital and related financing activities:
6,681)
Increase in contributed capital and assessments receivable
98 563
89
Six Months) (Fiscal Year)
222 im
S 445,846 1,175,357
608,238 1,195,174
3 350
401) (14,700)
6,042 (30,316)
11,537
1,372) (3,151)
16,499) (35,239)
41,366) 695
6,421 2.699
7,501 93
1,014,413 2,302,499
317,500) (12,500)
31,420)
19,712
317,500) (24,208)
435.000) 625,000)
174,348) 357,876)
155,500)
234,733) 340,571)
2,632 1,956
83,350 73,596
6,681) 214,447
98 563
920,192 ) 1,032 985
139,852 182,204
83,417) 1,427,610
4,918,404 1490,794
S 4,834,987 4,918,404
S 4,527,782 4,611,199
307,205 307,205
S 4.834.987 4.991
S 76,245 -
t, M.
CITY OF SEWARD
Electric Enterprise Fund
Schedule of Operating Expenses
Six Months Ended December 31, 1999
with Comparative Amounts for Fiscal Year Ended June 30, 1999
Power:
Salaries and employee benefits
Purchased services
Power for resale
Supplies and maintenance
Total power
Distribution:
Salaries and employee benefits
Salary credits - work orders
Purchased services
Supplies and maintenance
Supply credits - work orders
Administration and general
Total distribution
Administration and general:
Salaries and employee benefits
Purchased services
Supplies and maintenance
Payment in lieu of taxes
Administrative fee
Other
Total administration and general
Total operating expenses
90
Exhibit J -7 1
I
170,917 335,298
Six Months) Fiscal Year)
1999 1999
17,412 26,458
25,937 53,240
1,034,447 2,209,647
15,161 25,182
1,092,957 2,314,527
170,917 335,298
138,254 264,807
67,673) 125,633)
45,531 29,975
166,927 161,795
77,581) 96,212)
1,952 2,356
207,410 237,088
170,917 335,298
90,084 169,220
59,344 71,456
260,972 523,049
247,326 441,704
79,180 75,236
907,823 1,615,963
2,2 0088,1190 4,167,578 '
Exhibit A
Ci'I'Y OF SEWARD
Electric Enterprise Fund
Combining Schedule of Electric Capital Projects
Six Months Ended December 31, 1999
Marathon
View 11
Electrical Forest Standby
Improve- Acres Electric
MInq Electrical Generat or Totals
Funding sources:
State grant 6,681 6,681
Electric funds 50,407 25,838 76,245
Total funding sources 50,407 25,838 6,681 82,926
Expenditures:
Salaries and employee benefits 16,289 13,317 29,606
Supplies 20,517 6,303 26,820
Other services and charges 10,742 5,243 6,681 22,666
Equipment 2,859 975 3,834
Total expenditures S 50,407 25,838 6,681 82,926
1
1
91
crrY:OF SEWAM
water and Sewer Enterprise Fund
Balance sheet
December 31, 1999
with Comparative Amotrttts for June 30, 1999
Current assets:
Cash and investments
Receivables:
Accounts
Other
Less allowance for doubtful receivables
Net receivables
Inventory
Due from other funds
Total current assets
Assessments receivable
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 liabilities:
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
December 31, June 30,
1292 LM
S 1,794.784 1,523,774
40,128 87,451
11,476
5,158) 7.287 )
34,970 91,640
26,321 36,242
46,713
1,856.075 1,698.369
147.448
15,021,021 14, 724,532
6,510,159j 6,326,323)
8,510,862 8,398,209
20,442 155,973
8,531,304 8.554.182
10,534,827 10.252.551
12,597 18,906
40,636 39,012
13,597 12,497
5,291 22,575
5,758 5,190
77,879 98,180
713,842 754,478
791,721 852,658
11,800,940 11,577,069
5,540,809) (5,394,080)
6,260,131 6,182,989
3,482,975 3.216,904
9,743,106 9,399,893
S 10.534,827 10,252,551
i
i
Earnings from operations
Six Months) (Fiscal Year)
CITY OF SIMARD
Water and Sewer Ettterprise Fund
Statement of Revenues, Expenses
Im
and Changes in Retained Earnings
Operating revenues:
Six Months Ended December 31, 1999
49,431
17,007)
with Comparative Amounts for Fiscal Year Ended June 30, 1999
Earnings from operations
Six Months) (Fiscal Year)
168,143
1222 Im
Operating revenues:
Investment income
Interest expense
49,431
17,007)
68,449
34,841
Residential S 288,620 571,985
33,608
Small general service 73,018 130,944
201,751
Large general service 151,437 263,815
Industrial 71,570 128,166
Seward Marine Industrial Center 59,578 112,421
Ship water sales 89,369 79,566
72,628
Miscellaneous 41,615 68,274
48,220
Total operating revenues 775,207 1,355,171
Operating expenses:
Increase in retained earnings
Distribution 42,260 366,137
Beginning retained earnings
Administration and general 432,068 445,417
Total operating expenses 474,328 811,554
Earnings from operations before depreciation 300,879 543,617
93
Depreciation 183,835 375,474
Earnings from operations 117,044 168,143
Nonoperating revenues (expenses):
Investment income
Interest expense
49,431
17,007)
68,449
34,841
Net nonoperating revenues (expenses) 32,424 33,608
Earnings before operating transfers 149,468 201,751
operating transfers from other funds 29,495
operating transfers to other funds 106,335)
Net operating transfers 76,840)
Net earnings 72,628 201,751
increase in retained earnings for reclasses from contributed capital 48,220
Amortization of contributed capital 146,729 292,718
Increase in retained earnings 267,577 494,469
Beginning retained earnings 3,216,904 2,742,435
Residual equity transfers to other funds 1,506) 20.0001
Ending retained earnings S 3,482,975 3,216,904
93
1
Noncash capital and related financing activities: '
Increase in contributed capital and assessments receivable S 147,448 -
Corrections and reclassifications to property, plant
and equipment S - (84,673) '
r.
94
CITY OF SEWARD
Water and Sewer Enterprise Fund
Statement of Cash Flows
Six Months Ended December 31, 1999
with Comparative Amounts for Fiscal Year Ended June 30, 1999
Six Months) Fiscal Year)
1999 19"
Cash flows from operating activities:
Earnings from operations 117,044 168,143
Adjustments to reconcile earnings from operations
to net cash flows from operating activities:
Depreciation 183,835 375,474
Decrease in allowance for doubtful receivables 2,129) 7,121)
Increase) decrease in assets:
Receivables 58,799 110,239
Inventory 9,921 2,697
Increase (decrease) in liabilities:
Accounts payable 6,310) 106,999)
Accrued annual leave 1,100 1,426)
Other accrued liabilities 568 230
Net cash flows from operating activities 362,828 540,777
Cash flows from noncapital financing activities:
Operating transfers from other funds 29,495
Operating transfers to other funds 106,335)
Residual equity transfers to other funds 1,506) 20,000)
Net cash flows from noncapital financiing activities 78,346) 20,000)
Cash flows from capital and related financing activities:
Decrease in due from other funds 46,713 46,713
Principal payments on long -term debt 39,012) 37,454)
Interest payments on long -term debt 34,291) 35,912)
Acquisition of property, plant and equipment 160,958) 38,399)
Contributed capital 124,645 1( 23^,100)
Net cash flows from capital and related financing activities 62,903) 1 88,152)
flows from investing incomeCashactivities - investment received 49,431 68,449
Net increase in cash and investments 271,010 401,074
Beginning cash and investments 1.523,774 1,122,700
Ending cash and investments 1,794,784 1,523,774
Noncash capital and related financing activities: '
Increase in contributed capital and assessments receivable S 147,448 -
Corrections and reclassifications to property, plant
and equipment S - (84,673) '
r.
94
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
CITY OF SEWARD
Water and Sewer Enterprise Fund
Schedule of Operating Expenses
Six Months Ended December 31, 1999
with Comparative Amounts for Fiscal Year Ended June 30, 1999
Distribution:
Salaries and employee benefits
Purchased services
Supplies and maintenance
Total distribution
Administration and general:
Salaries and employee benefits
Purchased services
Supplies and maintenance
Payment in lieu of taxes
Administrative fee
Other
Total administration and general
Total operating expenses
95
Exhibit J -12
Six Months) (Fiscal Year)
1999 1999
14,722 133,277
23,671 205,804
3,867 27,056
42,260 366,137
92,525 82,908
111,712 30,172
36,203 52,409
62,017 108,402
116,773 163,280
12,838 8,246
432,068 445,417
474,328 811,554
CITY OF SEWARD
Water and Sewer Enterprise Fund
Combining Schedule of Water and Sewer Capital Projects
Six Months Ended December 31, 1999
Funding sources -
Water and sewer funds
Expenditures:
Contracted services
Other services and charges
Total expenditures
96
Exhibit J -13
Forest Forest
Acres Acres
Sewer Water Totals
56,720 58,842 115,
51,490 53,420 104,910
5,230 5,422 10,652
6,720 58,842 115,562
t ExNbit 1.14
CITY OF SEWARD
Hu>:bar Fnterprire Fund
Balaaee Sbeet
December 31,1999
with Comparative Amaurass for hme 30 ,1999
December 31, June 30,
A 1s 1444 1244
Current assets:
Cash and investments S ^3,738,350 3.126, 188
Receivables:
Accounts 228.259 381,408
Grants
Less allowance for doubtful receivables
9,032
26.905)
8,248
42, %8)
Net receivables 210,386 346.688
Total current assets 3,948,736 3,472.876
Assessments receivable 53 578
Property, plant and equipraeut:
Property, plant and equipment in service 9,096,698 61,542,327
Less accumulated depreciation 2,232,674 17,312 788
Net property, plant and equipment in service 6,864,024 44,229,539
Construction in progress 285,689 392,820
Total property, plant and equipment 7,149,713 44.622,359
Deferred charges - unamorti ed debt issuance costs 20414
S 11,152,027 48,115,649
t Lmabilitics and Fund Ellu
Liabilities:
current liabilities:
Accounts payable 32,122 35,387
Current portion:
Bonds payable 131.760
Capital lease obligations 60,000
Retirement incentive program payable 22 ,978 12,317
Accrued annual leave 37,673 46,352
Accrued interest
Other accrued liabilities 15,682
16,221
14,488
Deferred revenue 3,470,475 3,480,193
Due to other funds 46,713
Total current liabilities 3,578,930 3,843,431
Deferred revenue - Alaska Railroad Corporation loan receivable 107,312 107.312
Long -term debt, excluding current portion:
Bonds payable 1.3I7,600
Less unanortiaed deferred amount on refunding 135,430)
Capital lease obligations 475,000
Retirement incentive program payable 21,321 12.317
Total long -tam debt 21,321 1,669,487
Total liabilities 3,707,563 5.512,918
Fund equity:
Contributed capital 8,268,658 56,147,456
Less accumulated amortization 1,440,016) 14,946,975
Net contributed capital 6,828,642 41,200,581
Retained earrings - unreserved 615,822 1,294.838
Total fund equity 7,444,464 42,495.419
S 11,152,027 48,115,649
97
Exhibit J- 15 '
CITY OF SEWARD
Harbor Fmterptin Fund
Statement of Revenues. Expenses
and Changes in Retained Earnings
Six Moodu Ended December 31, 1999
with Comparative Amounts for Fiscal Year Ended Jute 30,1999
Six Months) (Fiscal Year)
IM 1M
Operating revenues:
Moorage S 507,301 965.440
Wharfage 6,392 30.222
Boat lift fees 37,465 227,621
Power sales 69,503 160.584
Storage 91,953
Rentals and leases 104,155 287,484
Miscellaneous 70,846 130.368
Total operating revenues 795,662 1,893.672
Operating expenses,
Salaries 17$,272 389,250
Employee benefits 112,078 168,802
Purchased services 1 12,151 213,916
Power for resale 49,255 120,178
Supplies and maintenance 24,014 163,261
Administration and general 139,486 574,179
Total opemtmg expenses 615.256 1,629,586
Earnings from operations before depreciation 180,406 264,086
Depreciation 191,829 1,349.070
Loss from operations 1 1,423) 1,084,984)
Nonoperating revenues (expenses):
Gain on sale of property and equipment 87,727
investment income 100,864 73,331
Land lease 175,000
Interest expense 170,639)
Other revenues 197,398
Net nonoperati ng revenues (expenses) 100,864 362,817
Earnings before transfers 89,441 722,167) loss) operating
Operating transfers to otter funds C54,037 137
Net earnings (loss) 35,404 859,872)
increase in retained earnings for capitalized assets constructed in other funds 123,100
Decrease in retained earnings for reclass to contributed capital 40,587) 587)
Amortization of contributed capital 181,893 1,193,163
increase in retained earnings 176,710 456,391
Beginning retained earnings 1,294,838 1,154,571
Prior period adjustment 283,181)
Residual equity transfer to establish separate SMIC Fund 430,261)
Residual equity transfers to other funds 4125,465) 32,943)
Ending retained earnings S 615,822 1.294,838
99
CITY OF SEWARD
Harbor Enterprise Fund
Stseernant of Cash Fbws
Six Months Ended December 31, 1999
with Comparative Amounts for Fiscal Year Ended Jute 30, 1999
Six Months) (Fiscal Yew)
1222 Im
Cash flows from operating activities:
Loss from operations 11,423) 1,084,984)
Adjustments to reconcile loss from operations to net cash
flows from operating activities:
Depreciation 191,829 1,349,070
Other nonopending revenues 372,398
increase) decrease in allowance for doubtful receivables 16,063 17,032)
increase) decrease in assets -receivables 144,982 120,340)
Increase (decrease) in liabilities:
Accounts payable 1,735) 10,082)
Accrued annual leave 8,679) 4,693
Other accrued liabilities 1,975 1,066
Due to other funds 70,472)
Deferred revenue 19,108
Retirement incentive program payable 19,665 12.317)
Net cash flows from operating activities 371,785 412,000
Cash flows from noncapital financing activities:
Operating transfers to other funds 54,037) 137.705)
Residual equity transfers to other funds 49,291) 32,943)
Decrease in advances from other funds 19,712)
Receipts on loan to Alaska Railroad Corporation 1 098
Net cash flows from noncapital financing activities l_ ( 03.328) 53.3421
Cash flows from capital and related financing activities:
Principal payments on long -term debt 183,$25)
interest payments on long -term debt 156,133)
Acquisition of property, plant and equipment 62,6831 693,722)
Proceeds from sale of property
Contributed capital 305,524
87,727
534,624
Increase in deferred revenue 3,105,049
Net cash flows from capital and related financing activities 242,841 2,694,019
Cash flows from investing activities - investment income received 100,864 73.331
Net increase in cash and investments 612,162 3,125,988
Beginning cash and investments 3,126,188 200
Ending cash and investments S 3,738.350 3326,188
Noncash capital and related financing activities:
increase in contributed capital and assessments receivable 53,578
Decreases resulting from transfers from Harbor Fund to SMIC Fund:
Current assets and deferred debt issuance costs S 11,188)
Net property, plant and equipment S 36.947,531)
Current hati0ities 94.845)
Long -term debt S 1.848.930 _}
Net contributed capital S 34,594,683)
Retained earnings S 430.261)
Decrease in net property, plant and equipment transferred to Parking Fund S 376.174)
Corrections and reclassifications to:
Contributed capital S 48,220 1598,157)
Property, plant and equipment 1483.1t 1)
Increase in property, plant and equipment, and contributed capital resulting from
transfer of harbor assets from State 1,479,397
99
Exhibit J -17
CITY OF SEWARD
Harbor Enterprise Fund
Combining Schedule of Harbor Capital Projects
Six Months Ended December 31, 1999
Expenditures:
Salaries and employee benefits
Contracted services
Supplies
Other services and charges
Total expenditures
100
504 - 504
34,968 34,968
20,844 - 20,844
2,180 4,187 6367
23,5288 39,155 62.683
Harbor Harbor
Plaza Repair and
Renovation Renovations Totals
Funding sources:
State grants 19,811 39,155 58,966
Harbor funds 3,717 3,717
Total funding sources 23,528 39,155 62,683
Expenditures:
Salaries and employee benefits
Contracted services
Supplies
Other services and charges
Total expenditures
100
504 - 504
34,968 34,968
20,844 - 20,844
2,180 4,187 6367
23,5288 39,155 62.683
MY OF SEWARD
Seward Marine Industrial Center Enterprise Fund
Bak=@ Sheet
December 31, 1999
Assets
Current assets - accounts receivable
Property, plant and equipment in service
Less accumulated depreciation
Net property, plant and equipment in service
Deferred charges - unamortized debt issuance costs
Liabilities and Fund Eguity
Liabilities:
Current liabilities:
Accounts payable
Current portion:
Bonds payable
Capital lease obligations
Accrued interest
Other accrued liabilities
Deferred revenue
Due to other funds
Total current liabilities
Long -term debt, excluding current portion:
Bonds payable
Less unamortized deferred amount on refunding
Capital lease obligations
Total long -term debt
Total liabilities
Fund equity:
Contributed capital
Less accumulated amortization
Net contributed capital
Retained earnings - unreserved
Total fund equity
1
101
S 32.289
52,157,514
15,775.402)
36,382,112
19,280
5 36,433,681
3,591
135,878
65,000
14,574
1,103
24,328
20,688
265,162
1,181,723
127,906)
410,000
1,463.817
1,728,979
48,283,435
14,181,822)
34,101,613
603,089
34,704,702
S 36,433,681
MY OF SEWARD
Seward Martine Industrial Center Enterprise Fund
Statement of Revenues, Expenses
and Changes in RetsinW Earnings
Six Months Ended December 31, 1999
Operating revenues:
3,127
Moorage S 9,733
Wharfage 5,026
Boat lift fees 77,900
Storage 46,862
Rentals and leases 39,087
Miscellaneous 6,281
Total operating revenues 184,889
Operating expenses:
Salaries 21,940
Employee benefits 4,468
Purchased services 17,344
Supplies and maintenance 37,322
Administration and general 39,642
Total operating expenses 120.716
Earnings from operations before depreciation 64,173
Depreciation 565,420
Loss from operations (501247)
Nonoperating revenues (expenses):
Investment income 3,127
Interest expense 65,530
Net nonoperating revenues (expenses) 62,403
Loss before operating transfers 563,650)
Operating transfers from other funds 250,491
Operating transfers to other funds T,03
Net operating transfers 243,408
Net loss 320,242)
Amortization of contributed capital 493,070
Increase in retained earnings 172,828
Beginning retained eamings
Residual equity transfer to establish separate SMIC Fund 430,261
Ending retained earnings 603,089
102
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CITY OF SEWARD,.
Seward Marine Industrial Center Enterprise Fund
Statement of Cash Flows
Six Months Ended December 31, 1999
1
r
Cash flows from operating activities:
Loss from operations
Adjustments to reconcile loss from operations to net cash
flows from operating activities:
Depreciation
Increase in assets - receivables
Increase (decrease) in liabilities:
Accounts payable
Other accrued liabilities
Due to other funds
Deferred revenue
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Operating transfers from other funds
Operating transfers to other funds
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
Payments on capital lease obligation
Net cash flows from capital and related financing activities
Cash flows from investing activities - investment income received
Net increase in cash and investments
Beginning cash and investments
Ending cash and investments
Noncash capital and related financing activities:
Increases resulting from transfers from Harbor Fund to SMIC Fund:
Current assets and debt issuance costs
Net property, plant and equipment
Current liabilities
Long -term debt
Net contributed capital
Retained earnings
103
S (501,247)
565,420
24,906)
5,323)
322
26,025)
3,743
250,491
7,083)
243,408
131,759)
58,519)
60,000)
250.278)
3,127
S -
11,188
S 36,947,531
84,845
S 1,848,930
S 34,594,683
430,261
Exhibit ] -20
Exhibit J -21
CITY OF SEWARD
Parking Revenue Enterprise Fund
Balance Sheet
December 31, 1999
with Comparative Amounts for June 30, 1999
December 31, June 30,
Assets 1999 1999
Current assets:
Cash and investments 91,818 43,888
Accounts receivable 1,698
Total current assets 91,818 45,586
Property, plant and equipment - parking lot improvements 376,174
Less accumulated depreciation 3,807}
Net property, plant and equipment 372,367
464,185 45,586
Liabilities and Fund Equity
Current liabilities:
Accounts payable 3,932 265
Other accrued liabilities 4,623
Total current liabilities 3,932 4,888
Fund equity:
Contributed capital 376,174
Retained earnings - unreserved 84,079 40,698
Total fund equity 460,253 40,698
464,185 45,586
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i
CITY OF SEWARD
Parking Revenue Enterprise Fund
Statement of Revenues, Expenses,
and Changes in Retained Earnings
Six Months Ended December 31, 1999
with Comparative Amounts for FisciA Year Ended June 30, 1999
Operating revenues:
Parking fees
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 before depreciation
Depreciation
Earnings from operations
Nonoperating revenues - investment income
Net earnings
Beginning retained earnings
Ending retained earnings
105
Exhibit J -22
Six Months) (Fiscal Year)
1999 1999
78,270 55,839
34,823
78,270 90,662
23,060 16,384
18,581
929 42,386
9,518 9,859
33,507 87,210
44,763 3,452
3,807
40,956 3,452
2,425 1,657
43,381 5,109
40,698 35,589
84,079 40,698
CITY OF SEWARD
Parking Revenue Enterprise Fund
Statement of Cash Flows
Six Months Ended December 31, 1999
with Comparative Amounts for Fiscal Year Ended June 30, 1999
Cash flows from operating activities:
Earnings from operations
Adjustments to reconcile earnings from operations
to net cash flows from operating activities:
Depreciation
Decrease in assets - accounts receivable
Increase (decrease) in liabilities:
Accounts payable
Other accrued liabilities
Net rash flows from operating activities
Cash flows from investing activities - investment income received
Net increase (decrease) in cash and investments
Beginning cash and investments
Ending cash and investments
Noncash capital and related financing activites:
Increase in property, plant and equipment and contributed capital
transferred from Harbor Fund
106
Exhibit J -23
Six Months) (Fiscal Year)
1999 1999
40,956 3,452
3,807
1,698 10,693
3,667 (34,130)
4,623) 42623
45,505 (15,362)
2,425 1,657
47,930 (13,705)
43,888 57,593
91,818 43,888
376,174 -
INTERNAL SERVICE FUND
rThe 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.
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Exhibit K -1
CITY OF SEWARD
Motor Pool Internal Service Fund
Balance Sheet
December 31, 1999
with Comparative Amounts for June 30, 1999
December 31, June 30,
Assets 1999 1999
Current assets - cash and investments $ 327,222 268,258
Equipment and vehicles 1,273,045 1,255,045
Less accumulated depreciation 622,347 (553,404)
Net equipment and vehicles 650,698 701,641
977,920 969,899
Liabilities and Fund Equity
Liabilities:
Current liabilities:
Accrued interest 833 -
Current portion of capital lease obligations 89,551 87,257
Total current liabilities 90,384 87,257
Long -term debt - capital lease obligations, excluding
current portion 182,641 224,371
Total liabilities 273,025 311,628
Fund equity:
Contributed capital 505,108 487,108
Less accumulated amortization 29,188 (24,324)
Net contributed capital 475,920 462,784
Retained earnings - unreserved 228,975 195,487
Total fund equity 704,895 658,271
107
977,920 969,899
CITY OF SEWARD
Motor Pool Internal Service Fund
Statement of Revenues, Expenses,
and Changes in Retained Earnings
Six Months Ended December 31, 1999
with Comparative Amounts for Fiscal Year Ended June 30, 1999
Operating revenues - vehicle rental
Operating expenses - depreciation
Earnings from operations
Nonoperating revenues (expenses):
Investment income
Interest expense
Net nonoperating revenues (expenses)
Net earnings
Amortization of contributed capital
Increase in retained earnings
Beginning retained earnings
Ending retained earnings
108
Exhibit K -2
Six Months) (Fiscal Year)
1999 1999
97,559 169,440
68,943 120,108
28,616 49,332
8,138 16,665
8,130) -.(12,80 1)
8 (3,136
28,624 46,196
4,864 19,459
33,488 65,655
195,487 129,832
228,975 195,497
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CITY OF SEWARD
Motor Pool Internal Service Fund
Statement of Cash Flows
Six Months Ended December 31, 1999
with Comparative Amounts for Fiscal Year Ended June 30, 1999
Cash flows from operating activities:
Earnings from operations
Adjustments to reconcile earnings from operations
to net cash flows from operating activities:
Depreciation
Decrease in 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
Contributed capital
Net cash flows from capital and
related financing activities
Cash flows from investing activities -
investment income received
Net increase (decrease) in cash and investments
Beginning cash and investments
Ending cash and investments
109
Exhibit K -3
Six Months) (Fiscal Year)
1999 1999
28,616 49,332
68,943 120,108
6,282)
97,559 163,158
39,436) 82,490)
7,297) 19,801)
18,000) 195,983)
18,000 84,363
46,733) 213,911
8,138 16,665
58,964 (34,088)
268,258 302,346
327,222 268,258
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110 1
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.
Cash and investments
Accounts payable
Due to others
Assets
Liabilities
Exhibit L -1
CM OF SEWARD
Agency Funds
Combining Balance Shat
December 31, 1999
with Comparative Totals for June 30, 1999
AVTEC
Teen Council Contract Totals
Agency Agency December 31, June 30,
Fund Fund 1999 1999
3,392 229 3,621 2,523
200 - 200 764
3,192 229 3,421 1,759
S 3,392 229 3,621 2,523
111
Assets
Cash and investments
Liabilities
Accounts payable
Due to Teen Council
CITY OF SEWARD
Teen Council Agency Fund
Statement of Changes in Assets and Liabilities
Six Months Ended December 31, 1999
Balance at
Jtv 1.1999 Additions Deletions
Exhibit L -2
Balance at
December 31,
1999
2,5 6,460 5,591 3,392
764 200 764 200
1,759 6,433 5,000 _ 31192
2,523 6,633 764 3,392
112
Assets
Cash and investments
Due to AVTEC
CITY OF SEWARD
AVTEC Contract Agency Fund
Statement of Changes in Assets and Liabilities
Six Months Ended December 31, 1999
Balance at
July 1, 1999 Additions Deletions
Exhibit L -3
Balance at
December 31,
1999
753 229
S .. X85 456 229
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7
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GENERAL FIXED ASSET ACCOUNT GROUP
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.
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CITY OF SEWARD
General Fixed Assets Account Group
Schedule of General Fixed Assets by Sources
December 31, 1999
with Comparative Amounts for June 30, 1999
General fixed assets:
Land and land rights
Buildings
Improvements other than buildings
Equipment
Construction in progress
Investment in general fixed assets:
Capital Project Funds
General Fund
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115
Exhibit M -1
December 31, June 30,
1999 1999
3,898,515 3,870,420
61,406,904 53,658,927
10,604,013 10,456,706
2,927,671 2,852,411
490,702 8,079,960
79,327,805 78,918,424
74,1 61,212 73,792,900
5,166,593 5,125,524
79,327,805 78,918,424
Exhibit M -2
CITY OF SEWARD
General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets
Six Months Ended December 31, 1999
78,918,424 8,308,577 7,899,196 79,327,805
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116
Balance at
Balance at December 31,
July 1. 1999 Additions Deletions 1999
Land and land rights $ 3,870,420 28,095 3,898,515
Buildings 53,658,926 7,747,978 61,406,904
Improvements other than buildings 10,456,706 147,307 10,604,013
Equipment 2,852,411 75,260 2,927,671
Construction in progress 8,079,961 309,937 7,899,196 490,702
78,918,424 8,308,577 7,899,196 79,327,805
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Exhibit M -3
CITY OF SEWARD
General Fixed Assets Account Group
Schedule of General Fixed Assets by Function and Activity
December 31, 1999
Land Improve-
and ments
Land Other than
Function and Activity gbk Buildings BuildiM FAui2ment Total
General government:
City Council/Mayor 54,323 54,323
City manager w =
5,684 5,684
City clerk 10,613 10,613
Finance 184,970 184,970
Community development 5,860 5,860
Municipal building 2,200,080 27,186 2,227,266
Alaska Sealife Center 47,691,050 1,863,589 1,058,507 50,613,146
General services 8,005,937 51,007 8,056,944
t Community and Senior Center 920,709 920,709
Nondepartmental 3,898,515 3,898,515
Total general government 3,898,515 50,811,839 9,869,526 1,398,150 65,978,030
Public safety:
Police 177,219 177,219
Jail 12,562 12,562
Animal control 156,720 156,720
Fire 881,031 405,022 1,286,053
Seward Volunteer Ambulance Corp 61,614 61,614
Total public safety 1,037,751 656,417 1,694,168
Public works:
Streets 116,945 129,804 647,188 893,937
Building inspector 2,600 2,600
City shop 771,823 45,001 816,824
Total public works 888,768 129304 694,789 1,713,361
Hospital 7,745,896 7,745,896
Parks and recreation 284,909 591,883 124,415 1,001,207
Library 637,741 12,800 53,900 704,441
Total general fixed assets allocated
to functions 3,898,515 61,406,904 10,604,013 2,927,671 78,837,103
Construction in progress 490,702
Total general fixed assets 79,327,805
1
117
Exhibit M4 1
CITY OF SEWARD
General Fixed Assets Account Group '
Schedule of Changes in General Fixed Assets by Function and Activity
Six Months Ended December 31, 1999
General Fixed General Fixed
Assets at Assets at '
Function god Activity July 1.1999 Additions DpLetions D ber 1 1999
General government:
City Council/Mayor
City manager
City clerk
Finance
Community development
Municipal building
Alaska Sealife Center
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
Hospital
Parks and recreation
Library
Construction in progress
54,323 54,323
5,684 5,684
10,613 10,613
184,970 184,970
5,860 5,860
2,202,741 24,525 - 2,227,266
50,590,569 22,577 - 50,613,146
8,056,944 8,056,944
920,709 920,709
3,870,420 28,095 - 3,898,515
65,902,833 75,197 - 65,978,030
177,219 177,219
12,562 12,562
156,720 156,720
1,286,053 1,286,053
61,614
1,694,168
61,614
1,694,168
782,369 111,568 - 893,937
2,600 2,600
792,946 23,878 - 816,824
1,577,915 135,446 - 1,713,361
7,745,896 - 7,745,896
971,906 29,301 - 1,001,207
691,641 12,800 - 704,441
8,079,961 309,937 7,899,196 490,702
78,918,424 8,3 0 7,899,196 79,327,805 ,
118
GENERAL LONG -TERM DEBT ACCOUNT GROUP
1
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.
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Exhibit N -1
CITY OF SEWARD
General Long -Term Debt Account Group
Schedule of General Long -Term Debt
December 31., 1999
with Comparative Amounts for June 30, 1999
December 31. June 30,
1999 1999
Amount Available and to be Provided for the
Payment of General Long -Term Debt
Amount available in Debt Service Fund $ 429,829 336,095
Amount to be provided:
Accrued annual leave 174,014 202,672
Bonds payable 8,559,855 8,971,829
Retirement incentive program payable 117,154 29,207
Seward General Hospital PERS liability 960,286 960,286
Total amount to be provided 9,811,309 10,163,994
10,241,138 10,500,089
General Long-Term Debt Payable
tAccrued annual leave 174,014 202,672
1990 bonds payable 75,000 145,000
1993 refunding bonds payable for the 1987 Series A 282,400 310,640
1993 refunding bonds payable for the 1990 Series A 1,390,000 1,405,000
tRetirement
1996 Hospital bonds
incentive program payable
7,120,000
117,154
7,325,000
29,207
Seward General Hospital PERS liability 1,082,570 1,082,570
10,241,138 10,500,089
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120 1
PART III
STATISTICAL SECTION
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Table 1: General Fund Revenue by Source
Table IA: General Government Tax Revenues by Source
Table 2: General Fund Expenditures by Function
Table 3: Property Tax Levies and Collection
Table 4: Assessed and Estimated Actual Value of Taxable Property
Table 5: Property Tax Rates — Direct and Overlapping Debt
Table 5: Special Property Assessment Collections
Table 7: Ratio of Net General Obligation Bonded Dent to Assessed Value
And Net General Obligation Bonded Debt Per Capita
Table 8: Legal Debt Margin
Table 8A: Computation of Direct and Overlapping Bonded Debt
fable 9: Ratio of Annual Debt Service Expenditures for General Obligation
Debt to Total General Fund Expenditures
Table 10: Revenue Bond Coverage
Table U: : Property Value, Construction and Bank Deposits
Table 12: Principal Taxpayers
Table 13: Miscellaneous Statistics
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CITY OF SEWARD
General Fund Revenues By Some
Last Ten Fiscal Periods
Table 1
Property Licenses later- Chargas Fines
Fiscal
Year Taxes
Assess-
ments
and
Pgrmft
govern-
mental
for
Services
and
Bolls InteLeA Misc. Total
1991 2,293,728 5230,546 69,195 1,046,659 2,025,766 13,058 5410,593 95,077 56,184,622
1992 2,627,050 6,505 74,005 913,137 1,879,663 18,158 245,872 124,466 S5,888,856
1993 52,509,708 532,573 23,736 983,759 52,425,012 41,892 236,986 47,862 6,301,528
1994 52,882,005 S19,795 33,132 5903,835 2,104,588 535,230 102,824 536,807 56,118,216
1995 53,081,177 52,241 561,073 789,157 1,760,860 549,289 5221,832 39,340 56,004,969
1996 2,923,340 5524 119,982 909,521 1,595,223 26,945 S219,514 106,126 55,901,175
1997 3,072,913 51,871 5200,964 1,099,869 1,662,854 12,383 280,363 550,079 6,381,294
1998 3,293,763 SO 115,106 1,105,212 51,540,141 514,495 261,974 147,861 6,478,552
1999 53,584,389 0 144,003 51,021.209 51,475,581 17,347 5214,140 218,597 56,675,266
1999 2,255,326 0 573,715 5438,185 925,721 10,748 5104,719 41,956 53,850,370
i
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 3 L
This interim penod represents the six-month period from July 1, 1999 to December 31, 1999.
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1 121
CITY OF SEWARD
General Government Tax Revenues By Source
Last Ten Fiscal Periods
1
Table 1 A '
1
1
1
1
Effective July 1, 1999, the City of Seward changed from a Fiscal year ending June 30, to a calendar year ending December 31. '
This interim period represents the six-month period from July 1, 1999 to December 31, 1999.
1) In Fiscal Year 1994 and 1995, lodging assessment fee was based on S30 per room, per year.
Beginning Fiscal Year 1996, lodging assessment fee was replaced by 4% hotel/motel room tax. '
2) Represents tax - related penalties and interest, and harbor parking assessment fee (discontinued after FY96).
122
Payment
Fiscal Property Sales to Lin Bed
Year Tax Tax of Tax Tax (1) Other (2} Total
1991 409,663 51,190,645 679,292 14,128 2,293,728
1992 619,566 1,268,572 S692,653 46,259 52,627,050
1993 515,286 1,286,358 5681,615 S26,449 2,509,708
1994 468,880 51,484,355 5864,922 6,295 557,553 2,882,005
1995 498,016 51,587,199 904,889 7,350 583,723 3,081,177
1996 5514,588 51,619,606 693,626 553,461 542,059 52,923,340
1997 S479,062 51,734,019 5729,498 S128,188 2,146 3,072,913
1998 518,788 51,820,230 799.978 S148,211 6,556 3,293,763
1999 523,993 52,029,485 964,106 5163,330 3,475 S3,584,389
1999 515,544 1,197,288 419,108 122,248 1,138 52,255,326
1
Table 1 A '
1
1
1
1
Effective July 1, 1999, the City of Seward changed from a Fiscal year ending June 30, to a calendar year ending December 31. '
This interim period represents the six-month period from July 1, 1999 to December 31, 1999.
1) In Fiscal Year 1994 and 1995, lodging assessment fee was based on S30 per room, per year.
Beginning Fiscal Year 1996, lodging assessment fee was replaced by 4% hotel/motel room tax. '
2) Represents tax - related penalties and interest, and harbor parking assessment fee (discontinued after FY96).
122
TablLZ
CITY of SEWARD
General Governmental Expenditures By Function (1)
Last Ten Fiscal Periods
Fiscal General Public Public Parks and Debt
YM Government Safdv Wor Recreation Uhrja rvice Total
1991 1,488,855 1,584,821 5608,287 5449,119 5154,870 362,260 S4,648,212
1992 51,853,718 1,640,081 5692,653 5493,106 5193,510 345,265 5,216,333
1993 51,779,085 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 5343,702 55,034,693
1995 1,567,287 1,835,194 5801,753 430,112 190,517 282,748 55,107,611
1996 51,485,903 1,860,349 5791.868 508,467 S218,175 5270,201 5,134,963
1997 1,972,584 1,919,233 5790,386 632,389 228,894 5220,816 5,764,302
1998 1,960.687 1,876,870 831,248 609,001 234,033 5278,506 5,790,345
1999 1,542,370 1,914,943 5863,536 597,516 227,882 792,267 5,938,514
1999 864,468 1,029,356 490,459 5386.599 5117,411 570,058 3,458,351
1
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December
31. This interim period represents the six-month period from July 1, 1999 to December 31, 1999.
1) Includes General Fund and Debt Service Fund
1
1 123
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 3 1. ,
This interim period represents the six -month period from July 1, 1999 to December 31, 1999.
Source: Kenai Peninsula Borough
124 1
CITY OF SEWARD
Property Tax Levies And Collections
Last Ten Fiscal Periods
Table 3
1
Ratio of
Total Current Percent Delinquent Total
Total Tax
Collection Outstanding
Delinquent
Taxes As A
Fiscal Tax Tax of Levy Tax Tax As A % Delinquent of
Year Lev Coilections per Collections Collgetions Of Levy Taxes Total
1991 463,743 S413,850 89.2% S5,731 S419,581 90.3% 561,460 13.3%
1992 S489,226 447,123 91.4% 522,471 S469,594 96.0% 76,962 15.7%
1993 5498,366 470,322 94.40% 31,983 502,305 100.8% 67,164 13.5%
1994 5496,933 5434,736 87.5% 29,171 5463,907 93.4% 98,709 19.94/0
1995 546,115 5469,274 85.90/0 99,191 S568,465 104.1% 76,237 14.00/9
1996 505,034 S447,110 88.5% 566,044 S513,153 101.6% 68,253 13.5%
5438,512 89.6% S2,294 S440,807 90.1% 583,389 17.1% 1997 489,187
1998 495,052 466,528 94.2% 13,791 480,319 97.0% 60,601 12.2%
505,323 488,883 96.7% 532,515 521,398 103.2% 540,930 8.1% 1999
1999 523,453 484,305 92.5% 4,627 488,931 93.4% S70,490 13.5%
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 3 1. ,
This interim period represents the six -month period from July 1, 1999 to December 31, 1999.
Source: Kenai Peninsula Borough
124 1
TT
CITY OF SEWARD
Assessed And Estimated Actual Value of Taxable Property
Last Ten Fiscal Periods
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30. to a calendar year ending December 31. This
interim period represents the six -month period from July 1, 1999 to December 31, 1999.
Source: "Alaska Taxable ", State of Alaska
Kenai Peninsula Borough Certified Assessment Roll
1
1 125
Real Property Personal Property Total Property
Ratio of Total
Estimated Estimated Estimated Assessed Value
Fiscal Assessed Actual Assessed Actual Assessed Actual To Total Est.
Year
1991
Value
97,193,437
Value
S100,612,800
Value
553,601,900
Value V laaeValueActualValue
64,419,000 150,795,337 165,031,800 91.37%
1992
1993
88,464,566 100,667,900 552,574,761 68,929,200 141,039,327 169,597,100 83.160/a
92,122,180 98,261,300 50,038,979 66,112,200 142,161,159 5164,383,500 86.48%
1994 5102,022,980 111,378,100 153,373,128 69,439,400 155,396,108 180,817,500 85.940/a
1995 S 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 108,318,979 117,443,100 550,476,044 70,537,400 158,795,023 187,980,500 84.47%
1998 106,196,750 S 117,506,400 549,253,008 67,755,600 S 155,449,758 185,262,000 83.91%
1999 106,918,000 S 1 14,049,300 52,852,159 70,534,400 159,770,159 184,583,700 86.56%
1999 113,464,200 124,730,000 58,163,405 572,987,600 171,627,605 197,717,600 86,80%
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30. to a calendar year ending December 31. This
interim period represents the six -month period from July 1, 1999 to December 31, 1999.
Source: "Alaska Taxable ", State of Alaska
Kenai Peninsula Borough Certified Assessment Roll
1
1 125
Table 5
CITY OF SEWARD
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Periods
Per $1,000 of Assessed Value)
Fiscal
Year ijy_ Borough Total
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
1999 3.12 8.08 11.20
1999 3.12 8.08 11.20
i
1) includes Kenai Peninsula Borough and Kenai Peninsula Community College.
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending
December 31. This interim period represents the six-month period from July 1, 1999 to December 31, 1999.
Source: City of Seward
Kenai Peninsula Borough
126
CITY OF SEWARD
Special Property Assessment Collections
Last Ten Fiscal Periods
Table
1
1 Fiscal
Current
Assessments
Current
Assessment
Ratio of
Collections To
Total
Outstanding
X" Due Collec oos At ount Due Assessments
1991 28,548 111,719 391.34% 250,200
1992 26,190 6,505 24.84% 263,978
1993 27,618 32,573 117.94% 249,385
1994 27,618 19,795 71.67% 265,103
1995 21,759 2,241 10.30% 285,889
1996 18,368 524 2.90% 272,190
1997 0 1,871 100.00% 241,660
1998 0 0 0.00% 241,660
1999 0 0 0.00% 241,660
1 1999 0 0 0.00% 258,706
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending
December 31. This interim period represents the six-month period from July 1, 1999 to December 31, 1999.
1
1
127
1
CM OF SEWARD
Ratio of Net General Obligation Bonded Debt
To Assessed Value And Net General Obligation Bonded Debt Per Capita
Last Ten Fiscal Periods
Fiscal
Debt
Assessed
Year Population f1) Value Z
1991 2,699 150,795
1992 2,806 141,039
1993 2,704 142,161
1994 2,704 155,396
1995 2,732 178,934
1996 3,034 164,148
1997 2,914 158,795
1998 2,999 155,450
1999 3,040 159,770
1999 3,010 171,627
Tahle 7 1
Grant Debt Ratio of Net Net
Bonded Payable from Not Bonded Debt Bonded
Debt Enterprise Bonded to Assessed Debt Per
Q## - Rev Rues# Debt# Value Capita
11,021 8,796 2.,225 1.48% 824
10,563 8,351 2,212 1.57% 3788
10,039 7,886 2,153 1.51% 796
10,249 7,930 52,319 1,491/6 858
9,549 7,310 2,239 125% 5819
8,788 6,636 2,152 1.31% 5709
15,600 6,037 9,563 6.02% 3,282
S14,865 5,398 9,467 6.09% 3,157
13,910 4,724 9,186 5.75% 3,022
13,025 4,157 8,867 5.17% 2,946
Effective July I, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 31
This interim period represents the six -month period from July 1, 1999 to December 31, 1999.
M 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
128
CITY OF SEWARD
Legal Debt Margin
December 31, 1999
No debt limit mandated by law.
129
Table 8A
CITY OF SEWARD
Computation of Direct And Overlapping Bonded Debt
General Obligation Bonds
December 31, 1999
Net General
Obligation Percentage Amount
Bonded Debt Applicable To Applicable To
Jurisdiction ,Qutsta ing wily of _Seward City of Seward
Direct:
City of Seward $8,867,400 (1) 100.00% 8,867,400
Overlapping:
Kenai Peninsula Borough Z,¢¢g,QN (3) 6.02% (2) J&Q1.3L0
Total 135-467.4 10,468,720
1
1
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 = $171,627,605) to total assessed
value ofthe Kenai Peninsula Borough (52,852,252,140). Source: "1999 Alaska Taxable ", State of Alaska, p.40, andKenaiPeninsulaBoroughcertifiedmainandsupplementaltaxroles.
3) Source: Kenai Peninsula Borough finance department.
130
ITable 9
CITY OF SEWARD
Ratio of Annual Debt Service Expenditures
For General Obligation Debt ( 1)
to Total General Fund Expenditures
Last Ten Fiscal Periods
Fiscal
Year
1991
1992
1993
1994
1995
1996
1997
1998
1999
1999
Principal
129,890
143,563
180,448
199,898
143,511
139,216
99,187
115,275
281,475
318,240
Interest
232,370
201,701
187,061
143,804
139,237
130,985
121,629
163,231
510,792
251,818
Total
Debt
Service (1),
362,260
345,265
367,509
343,702
282,748
270,201
220,816
278,506
792,267
570,058
Total
General
Ependitures (2)
4,648,212
5,216,333
5,173,298
5,034,693
5,107,611
5,134,963
5,764,302
5,790,345
5,938,514
3,458,351
Ratio of
Debt Service to
General
Expenditures
7.79%
6.62%
7.10%
6.83%
5.54%
5.26%
3.83%
4.81%
13.34%
16.48%
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending
December 31. This interim period represents the six -month period from July 1, 1999 to December 31, 1999.
1) General obligation debt reported in the enterprise, internal service and capital project funds, with govern ment
commitment, have been excluded.
2) Total General Expenditures includes General Fund and Debt Service Fund,
131
Table 10
CITY OF SEWARD r
Revenue Bond Coverage
Electric Enterprise Fund ,
Last Ten Fiscal Periods (5 *)
Note: No data is presented for the current fiscal reporting period from July 1, 1999 to December 31, 1999. The bond covenant,
requires that the computation of `coverage' be represented on an annual basis. Due to the timing of debt payments, it is not possible
to fairly present 'coverage' computations for a six-month period. It would be misleading to annualize data for the purposes of this
presentation, since the data would represent estimates rather than actual amounts.
1) Total revenues, including interest. 1
2) Total operating expenses exclusive of depreciation and payment in lieu of taxes.
3) Includes principal and interest of revenue bonds only. Excludes geucial obligation bonds reported in the Electric
Enterprise Fund. 1
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. '
132 1
Net Revenue Debt Service Rgguiremgnts
Fiscal Gross Operating Available for
Year Revenues(1) M- ense Debt Service Principal lntere t Total Coverage (4)
1995 5,927,945 3,538,065 2,389,880
1996 5,830,903 3,624,001 2,206,902 184,435 184,435 11.97
1997 5,955,699 S3,604,036 52,351,663 184,435 184,435 12.75
1998 6,428,124 4,064,418 2,363,706 50,000 5184,435 234,435 10.08
1999 6,720,313 3,644,529 3,075,784 75,000 180,760 255,760 12.03
Note: No data is presented for the current fiscal reporting period from July 1, 1999 to December 31, 1999. The bond covenant,
requires that the computation of `coverage' be represented on an annual basis. Due to the timing of debt payments, it is not possible
to fairly present 'coverage' computations for a six-month period. It would be misleading to annualize data for the purposes of this
presentation, since the data would represent estimates rather than actual amounts.
1) Total revenues, including interest. 1
2) Total operating expenses exclusive of depreciation and payment in lieu of taxes.
3) Includes principal and interest of revenue bonds only. Excludes geucial obligation bonds reported in the Electric
Enterprise Fund. 1
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. '
132 1
r
Fiscal
Year
1991
1992
1993
1994
1995
1996
1997
1998
1999
1999
Total Real
Property
Value (1)
100,612,800
100,667,900
98,261,300
111 ,378,100
111,294,400
113,853,300
117,443,100
117,506,400
114,049,300
124,730,000
CITY OF SEWARD
Property Value, Construction and Bank Deposits
Last Ten Fiscal Periods
Commercial
Construction
Number
of
ValuePermitsValue
29 2,163,276
21 842,685
16 328,462
20 3,120,673
27 31,539,700
16 8,076,000
29 7,770,836
24 2,095,035
22 5,937,950
24 1,407,699
Residential
Construction
Number
of
Permits Value
21 1,053,150
20 620,425
34 1,504,173
24 384,400
28 746,600
31 1,093,800
41 1,513,902
34 1,493,675
25 1,271,900
12 719,300
Table
Bank
Deposits_
27,477,800
32,518,000
27,808,000
28,409,000
35,186,501
36,572,000
38,598,136
43,350,000
47,116,749
42,661,000
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending
December 31. This interim period represents the six -month period from July 1, 1999 to December 31, 1999.
1) Estimated actual value from Table 4
Source. City of Seward - Building Inspection Department
Local Banks - First National Bank of Anchorage, National Bank of Alaska
133
CITY OF SEWARD
Principal Taxpayers
June 30, 1999 #
Taxpayer Type of Business
2,424,272
Seward Fisheries/Icicle Seafoods Seafood Processing
Suneel Alaska Corporation Coal Export
Alaska Heritage Tours, Inc. Boat Tours
New Seward Hotel/New Seward Saloon
Brad Snowden and Virginia Bradley Hotel/Saloon
Seward Ships Chandlery/ Ship Repair /Convenience
Harbor Gateway Enterprises- James Pruitt Store /Gas Station/Misc.
Shoreside Petroleum, Inc. Petroleum Products
Breeze Inn Motel - Juris Mindenbergs Motel/Restaurant
Anderson Tug & Barge
John C. III & Sharon Anderson Tug & Barge Service
Leirer Enterprises
Steven Leirer, James Leirer & Carol Leirer Real Estate/Leasing
Harbor Enterprises, Inc.
Dale & Carol Lindsey Petroleum Products
FY99
Assessed
Valuation(i)
S 6,640,993
5,720,351
Table 12
Percent of
Total
Assessed
Valuation (2)
4.2%
3.6%
5,305,623 3.3%
2,646,596 1.7%
2,612,748 1.6%
2,424,272 1.5%
2,204,032 1.4%
2,162,321 1.4%
2,023,209 1.3%
1,803,329 1.1%
1) Includes real and personal property. Source: Kenai Peninsula Borough - Assessing Department
2) Total assessed valuation (real and personal property) is S 159,770,159. Source: Kenai Peninsula Borough.
Note: Data for the period ended December 31, 1999 was not available from the Kenai Peninsula Borough as of the printing date
of this document.
134
i
Table 13
CITY OF SEWARD
MISCELLANEOUS STATISTICS
Deemnber 31, 1999
Date of Incorporation June 1, 1912
Class Home Rule
Form of Government
Number of employees
Council/Manager
Non - Exempt 67
Exempt
Area, Square Miles
15
22
Population 3,010
Qualified Voters 1,954
City of Seward facilities and services:
Miles of streets 43.14
Number of street lights 198
Building Permits Issued 36
Recreation and Culture:
Number of Parks & Playgrounds 11
Number of Libraries 1
Number of Volumes 27,000
Fire Protection
Number of Stations 2
Number of Paid Firefighters and Officers 2
Number of Volunteers 32
Number of Calls Answered 118
Fire Rating (ISO) 419
Police Protection
Number of Stations 1
Number of Officers 9
Number of law violations:
Physical arrests 176
Traffic violations 75
Parking violations 26
Sewerage System:
Number of treatment plants 2
Number of service connections 840
Daily average treatment in gallons 870,000
Maximum daily capacity of treatment plant in gallons 1,200,000
Water System:
Number of service connections 872
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 2,218
Miles of distribution lines 55
i
135
Table 13. continued
CITY OF SEWARD
MISCELLANEOUS STATISTICS
December 31, 1999
Miles of transmission lines 42
Number of sub - stations 3
Total number of kilowatt sales 27,277,458
Harbor and Port Operations:
Registered vessels 3,535
Number on waiting list for boat slips 327
Number of boat lifts 181
General cargo tonnage 1,377
Fish product tonnage 190
excludes Seward Fisheries, Inc. and Cook Inlet Fisheries, Inc.)
Petroleum (gallons) 1,885,319
Facilities and services not included in the reporting entity:
Education
Elementary School
Number of Students Enrolled 411
Number of Teachers 23
1r /Sr High School
Number of Students Enrolled 423
Number of Teachers 30
Alaska Vocational Technical Center
Number of Students Served Annually 1,500
Number of Teachers 33
Hospital
Providence Seward Medical Center:
Number of patient beds (4 primary care; 2 swing beds) 6
Number of employees:
Non - Exempt 50 tExempt6
1
1
136
End of File