HomeMy WebLinkAbout1999CAFRCITY OF SEWARD
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COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For Fiscal Year
Ended June 30, 1999
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COMPREHENSIVE ANNUAL
FINANCIAL REPORT
OF THE
CITY OF SEWARD, ALASKA
For the Fiscal Year Ended
June 30, 1999
Bob Satin
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
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PART I
INTRODUCTORY SECTION
Table of Contents
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
List of Principal Officials
Organizational Chart
CITY OF SEWARD
Comprehensive Annual Financial Report
Table of Contents
PART I - INTRODUCTORY SECTION
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Table of Contents
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
List of Principal Officials
Seward Citizens — Organizational Chart
PART Il - FINANCIAL SECTION
Independent Auditor's Report
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental
Fund Types
Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - General Fund
Combined Statement of Revenues, Expenses and Changes
in Retained Earnings - All Proprietary Fund Types
Combined Statement of Cash Flows - All Proprietary
Fund Types
Notes to General Purpose Financial Statements
Additional Information
Combining, Individual Fund, and Account Group
Statements and Schedules:
General Fund:
Balance Sheet
Statement of Revenues, Expenditures and
Changes in Fund Balance
Statement of Revenues, Expenditures and
Changes in Fund Balance — Budget and Actual
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Page
I -V
VH_XVHI
XIX
CX
XXI
Exhibit Page
1 -2
A -1 4-5
B -1 6
C -1 7
D -1 9
E -1 10 -11
13 -37
F -1 39
F -2 40
F -3 41 -47
CITY OF SEWARD
Comprehensive Annual Financial Report
Table of Contents, continued
FINANCIAL SECTION, continued
Exhibit Page
Additional Information, continued
Combining, Individual Fund, and Account Group
Statements and Schedules, continued:
Special Revenue Funds:
Combining Balance Sheet G -1 52
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances G -2 53
Parks and Recreation:
Combining Balance Sheet G -3 54
Combining Statement of Revenues, Expenditures and
and Changes in Fund Balances G -4 55
Public Safety:
Combining Balance Sheet G -5 56
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances (Deficit) G -6 57
Other General Government:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Debt Service Fund:
Balance Sheet
Statement of Revenues, Expenditures and Changes in
Fund Balance
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G -7 58
G -8 59
H -1 61
H -2 62
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CITY OF SEWARD
1 Comprehensive Annual Financial Report
Table of Contents, continued
FINANCIAL SECTION, continued
Additionallnformation continued
Combining, Individual Fund, and Account Group
Statements and Schedules, continued:
Capital Project Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Panics and Recreation:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances (Deficit)
Public Safety:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Other General Government:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Public Library:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures
and Changes in Fund Balance
Enterprise Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
Combining Statement of Cash Flows
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Exhibit Pa
I -1 66
I -2 67
1 -3 68
I4 69
1 -5 70
I -6 71
1 -7 72
I -8 73
I -9 74
1 -10 75
J -1 78 -79
J -2 81
J -3 82 -83
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CITY OF SEWARD
Comprehensive Annual 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 J-4 84 -85
Statement of Revenues, Expenses
and Changes in Retained Earnings J -5 86
Statement of Cash Flows J -6 87
Schedule of Operating Expenses J -7 88
Combining Schedule of Electric Capital Projects J -8 89
Water and Sewer:
Balance Sheet J -9 90
Statement of Revenues, Expenses
and Changes in Retained Earnings J -10 91
Statement of Cash Flows J -11 92
Schedule of Operating Expenses J -12 93
Combining Schedule of Water and Sewer Capital Projects J• 13 94
Harbor:
Balance Sheet J -14 95
Statement of Revenues, Expenses
and Changes in Retained Earnings J -15 96
Statement of Cash Flows J -16 97
Combining Schedule of Harbor Capital Projects J -17 98
Parking Revenue:
Balance Sheet J -18 99
Statement of Revenues, Expenses and
Changes in Retained Earnings J -19 100
Statement of Cash Flows J -20 101
Motor Pool Internal Service Fund:
Balance Sheet K -1 103
Statement of Revenues, Expenses and
Changes in Retained Earnings K -2 104
Statement of Cash Flows K -3 105
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CITY OF SEWARD
Comprehensive Annual Financial Report
Table of Contents, continued
FINANCIAL SECTION, continued
Exhibit Pane
Additional Information, continued
Combining, Individual Fund, and Account Group
Statements and Schedules, continued:
Teen Council Agency Fund:
Balance Sheet L -1 107
Statement of Changes in Assets and
Liabilities L -2 108
General Fixed Assets Account Group:
Schedule of General Fixed Assets by Sources M -1 109
Schedule of Changes in General Fixed Assets M -2 110
Schedule of General Fixed Assets
by Function and Activity M -3 111
Schedule of Changes in General Fixed Assets
by Function and Activity M -4 112
General Long -Term Debt Account Group —
Schedule of General Long -Term Debt N -1 113
1 0-1 114ScheduleofYear2000Issues
PART III — STATISTICAL SECTION
Table 1 General Fund Revenues by Source 115
Table 1 A General Government Tax Revenues by Sources 116
Table 2General Fund Expenditures by Function 117
Table 3Property Tax Levies and Collections 118
Table 4Assessed and Estimated Actual Value of Taxable Property 119
Table 5Property Tax Rates — Direct and Overlapping Governments 120
Table 6Special Property Assessment Collections 121
Table 7Ratio of Net General Obligation Bonded Debt to Assessed Value
and Net General Obligation Bonded Debt Per Capita 122
Table 8 Legal Debt Margin
Table 8A Computation of Direct and Overlapping Bonded Debt
123
124
Table 9Ratio of Annual Debt Service Expenditures for General
Obligation Debt to Total General Fund Expenditures 125
Table 10 Revenue Bond Coverage 126
Table 11 Property Value, Construction and Bank Deposits 127
Table 12 Principal Taxpayers 128
Table 13 Miscellaneous Statistics 129 -130
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CITY OF SEWARD'. • Main Office (907) 224 -4050
P.O. BOX 167
0 Police (907) 224 -3338
SEWARD. ALASKA 99664 -0167 '
Harbor (907) 224 -3138
Fire (907) 224 -3445
Fax (907) 224 -4038
1 September 2, 1999
To the Honorable Mayor, members of the City Council and the citizens of Seward:
The Comprehensive Annual Financial Report of the City of Seward, Alaska, for the fiscal year ended
June 30, 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
the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures,
rests with management. We believe the data as presented is accurate in all material respects. It is
presented in a manner designed to fairly set forth the financial position and results of operations of the City
as measured by the financial activity of the various funds and account groups. All disclosures necessary to
enable the reader to gain an understanding of the City's financial activities have been included.
The Comprehensive Annual Financial Report is presented in three sections: introductory, financial and
statistical. The introductory section, which is unaudited, includes this letter of transmittal, a list of the City's
principal officials, and an organizational chart. The financial section includes: the general purpose financial
statements, which present aggregate data by fund type and account group, and includes the notes to the
financial statements; the combining and individual fund and account group financial statements and
schedules; and the independent auditor's report on these financial statements and schedules. The statistical
section, which is also unaudited, includes statistical tables which present financial, social, and demographic
information, generally on a multi -year basis.
The City is required to undergo an annual single audit in conformity with the provisions of the State 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 A -133, "Audits of State, Local Governments, and lion - Profit
Organizations." For year ended June 30, 1999, the City was not required to undergo a federal single audit,
since federal expenditures 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 over financial reporting and compliance
with applicable laws and regulations, are available in a separately issued report.
The Reporting Entity and Its Servig2s.
For financial reporting purposes, the reporting entity included in our comprehensive annual financial report
includes all funds and account groups of the City. The General Fund is supported by taxes and general
government revenues which are not restricted to a particular use. The City provides a comprehensive range
of municipal services, including police, fire, culture and leisure services through the library and parks and
recreation departments, planning and zoning, economic development, public improvements, and general and
administrative services. The City also provides utility services, including electric, water and sewer. Utility
services are accounted for in enterprise funds and are supported through user charges established by tariff.
The City also maintains enterprise funds to account for the operations of all harbor- and port - related
activities and public parking services provided by the City.
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Gov rnxn nt 1 Structure, Local EconoWig nditions oo ,
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
1serveatermoftwoyears.
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 3,040.
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 193,000 visitors in its first year of operation. Industry
studies estimate that nearly 400,000 non - resident visitors travel to Seward each summer. In addition, over
300,000 Alaskans reside within 3 hours' highway travel time, and an estimated 158,000 visit each year.
Seward is known as the best one -day trip from Anchorage due, in part, to attractions such as Exit Glacier,
Kenai Fjords National Park, world -class sport fishing, the Alaska SeaLife Center, and the scenic splendor
of the surrounding area. The Seward Highway between Anchorage and Seward is 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 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 increase jobs, private investment and economic activity, is seen in the Seward Marine Industrial Center
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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.
Major lniitil ti_v_gs For the Year
The City's staff, following directives of the City Council, have been involved in a variety of projects during
the year. These projects reflect the government's commitment to viable economic development, stable
employment, and a healthy quality of life for its citizens.
The Seward Small Boat Harbor is a cornerstone in the City's economy. While the City owns all tide and
submerged lands underlying the harbor, the State of Alaska previously owned the float system within the
harbor. The City operated the harbor under an agreement with the State, which limited the City's ability
to make operational decisions without approval from the State. The 1998 State Legislature authorized the
City to assume 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 Council and administration have pursued a number of major programs and improvements, intended to
meet citizen demands for services and to safeguard the environment. These programs include: capital
repairs and improvements to Hoben Park - located adjacent to the Alaska SeaLife Center - to replace fencing,
monuments and trees. and to install a sidewalk; renovations to the police dispatch area to replace electrical
wiring and radios to comply with requirements of the Americans with Disabilities Act (ADA); completion
of a new community softball field in partnership with the Seward Little League; improvements to the
campgrounds, including improvements to comply with requirements of the ADA, and beautification of the
waterfront campground and park areas; a new fuel tank for the heating systems at the Fire and City Halls
to comply with federal regulations; a new emergency generator which will provide emergency backup power
for the Fire and City Hall buildings; completion of a strategic plan to guide the City to the year 2020;
upgrading and platting the Seward Community Cemetery; a change in the City code to allow development
on 30 foot lots to increase residential construction inside City limits; and preservation of historical records
of the City.
The Harbor Enterprise Fund continues to make functional and visual improvements to the harbor basin.
The harbor boardwalk adjacent to the boardwalk lease sites was rebuilt to improve access to harbor and
businesses upland form the small boat harbor. Harbor personnel continued with the harbor plaza
beautification project designed to improve the aesthetic appearance of the plaza area. This project involves
planting trees, shrubs and flowers, improving lighting, upgrading public telephone access, and adding
benches, picnic tables, trash containers, bicycle racks, a water fountain, and interpretive signs. The Harbor
also began the planning phase to upgrade the float system, using the deferred maintenance money of
approximately $3.12 million from the State of Alaska when the City acquired ownership of the small boat
harbor.
The Electric Utility Enterprise began the initial review and recommendation to upgrade the generation
system at the Ft. Raymond Substation to be completed in the year 2000 with substantial funding being
provided through a grant from the State of Alaska for slightly more than $1 million.
Major Initiatives For the Future
The City Council adopted 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 toward the year 2020. Town
meetings provided the forum for soliciting public input and prioritizing the needs of the community. The
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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 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 overcrowded and has
approximately 350 vessels on a waiting list for slip space. An eastward expansion is expected to
accommodate approximately 380 additional vessels and alleviate overcrowded conditions.
The Harbor Enterprise is currently in the design and engineering phase to upgrade 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 assumed ownership of the small boat harbor. The current plan upgrades as
much of the float 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
summer season starts.
With more than 100 cruise ships calling on the Port of Seward in 1999, and the increased demand for dock
capacity to accommodate height 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 $9.8 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 have also been incorporated in the expansion plans. Construction
is set to begin in January, 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 lafqrmation
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 internal controls 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. These controls are 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 adequate ,
controls exist to maintain and document compliance with applicable laws and regulations related to these
programs. These internal controls are subject to periodic evaluation by management. '
As part of the single audit performed by the City's independent auditors, tests are made to determine the
adequacy of the internal controls over financial reporting, including that portion related to federal and state ,
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financial assistance program. The results of the City's single audit for the fiscal year ended dune 30, 1999,
provided no instances of material weaknesses in the internal controls over financial reporting, 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 budgetary control is achieved on a project - length basis. 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 fcr in individual Funds, based on the purposes for which those Funds were created. The City
Council ma; by resolution, transfer unencumbered balances between line items within a department or
between departments or between Funds, and amend the original budget. The City Manager may transfer
amounts between line items within a department and between departments within a Fund. The level of
budgetary control (i.e. the level at which expenditures cannot legally exceed appropriations) is at the Fund
level.
Capital projects and grant activities are budgeted on a project - length basis. Activities of the General Fund,
1 which is required to have a budget, certain Special Revenue Funds, and the Enterprise Funds, are included
in the annual operating budget, with appropriations lapsing at year end. The City maintains an
encumbrance accounting system as one technique of ensuring budgetary control.
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 $7.322,027 in fiscal year 1999, a decrease of $6,333,173 (46.4°/x) from fiscal
year 1998. The amount of revenue from major sources and the increase or decrease from 1998 is shown in
the following tabulations:
Dollar Percent
Increase Increase
Percent (Decrease) (Decrease)
Revenue Sources Amount of Total from 1998 from 1998
Taxes $ 3,584,389 48.9% $290,626 8.8 %
Licenses and permits 144,003 2.0 28,897 25.1
Intergovernmental revenue 1,344,510 18.4 (6,493,735) (82.3)
Charges for services 1,475,581 20.2 (64,560) (91.6)
Fines and bails 17,347 0.2 2,852 19.7
Land sales 254,085 3.5 94,500 59.2
Investment income 271,856 3.7 (192,423) (41.4)
Miscellaneous revenue 230.256 3.1 670 0.3
322 Q2Z $ (6.333.173) 14
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The following graph identifies the major sources of general government revenue:
GENERAL GOVERNMENT REVENUES
General, Special Revenue and Capital Project Funds
7,322,027
Taxes 40.0%
y. c
All Other 12.5%
Into rgov't Rov. 18.4%
Charge• tot aervlcate 20.2%
In FY1999, overall tax revenues, which represent approximately 49% of all general government revenues,
increased $290,626, with most tax categories experiencing increases.
The Kenai Peninsula Borough bills and collects all property and sales taxes on behalf of the City. In FY1999,
general property tax revenues (which includes real and personal property tax) produced $523,993, compared
to $518,788 in the prior year. Real property taxes decreased 1.2 %, from $345,794 to $341,738, while personal
property taxes increased 5.4 %, from $172,994 to $182,255. 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 FY1999 are based on 1998 property assessments.
Sales tax revenues increased approximately 11.5 %, from $1,820,230 in FY1998, to $2,029,485 in FY1999.
However, 113 of the City's sales tax revenues is transferred to the Hospital Debt Service Fund to satisfy debt
service obligations on $7.5 million in hospital bonds. Payments in lieu of tax increased by $64,1281 to
864,106. Based on an operating agreement between the City and the Seward Association for the
Advancement of Marine Science, the Alaska SeaLife Center began contributing PILT (based upon 3% of
sales) in May 1998, which amounted to $81,400 in FY1999. The remainder of PILT is paid by the Enterprise
Funds whosd PILT is based on 8% of operating revenues. The 4% hotel/motel room tax brought in $163,330,
representing an increase of 10.2% from FY1998.
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The following chart shows the distribution of the various categories of tax revenues:
bake Tax 00.00A
TAX REVENUES
General Fund - $3,684,389
Property Tax 14.6%
i/
PILT 14.11E
Penattleanntereat 0.1%
Bed Tax 4.016
Other governmental -type revenues include license and permit fees, which increased $28,898 or 25.1% from
the prior year, bringing in $144,004. While DMV fees decreased a slight $4,387, building permits increased
108,8 %, from $32,270 to $67,389, primarily due to the construction of a new hotel and inn.
Intergovernmental revenues, which represent more than 18% of all general government revenues, showed
an 82.3% decline of $6,493,735, to $1,344,510. This decline is due primarily to completion of the Alaska
SeaL.ife Center project, which contributed significant State grant revenues in the prior year. Of the total
reduction in intergovernmental revenues, $6,424,012 results from declines in capital project revenues, while
funding for special revenue projects increased slightly by $14,280 to $102,209. Intergovernmental revenuesintheGeneralFundhavedecreased $84,003 from the prior year, primarily due to decreased monies fromtheStateofAlaskafortherevenuesharingandsafecommunitiesprograms. The other significant decrease
was a 17% reduction in raw fish tax, from $238,850 to $197,792.
Revenues from charges for services, which represents approximately 20% of all general government
revenues, experienced a net decline of $64,560 or 4.2% from the previous year. While parks and recreation
revenues were up $25,758 from the prior year, most other categories declined. The biggest decline was in
project management fees, which declined 4.3% or $41,302, due to the reduced revenues associated with
administering capital projects such as the Alaska SeaLife Center. In addition, administrative fees chargedtotheEnterpriseFundsforfinance, management and other services, declined $5,001 to $863,991. Overall,
street and shop department work orders declined $9,693, from $57,427 to $47,734.
Fines and bails experienced a 20% increase, from $14,495 to $17,347, while miscellaneous revenues
increased slightly, from $229,586 to $230,256. The City also received $254,085 from the sale of the Historic
Railroad Depot. Investment income was down by 41.4 %, from $464,279 to $271,856 due to lower cash
balances in capital projects and the General Fund.
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General ov rnm nt Ex nd't e
Expenditures for general government purposes totaled $7,052,277 in FY1999, representing a decrease of60.7 %,
or $10,873,515 from FY1998. Increases and decreases in expenditure levels for major functions of theCityfromtheprecedingyearareasfollows:
GENERAL GOVERNMENT EXPENDITURES
General, Special Revenue and Capital Project Funds
7,052,277
Public safety 2
Gen'1 Gov't 22.3%
L4,a' =-,
Public Works 12.2% j " \ Debt Service i1.2%
J
Pitt 41,41% , J COPIM Outlay 13.41%
Library 3.3% Public Service 41.41%
The overall decline of $10,873,515 in general government expenditures, which includes the General, SpecialRevenue, Debt Service and Capital Project Funds, is due primarily to a $11,049,080 overall reduction inexpendituresforcapitalprojects. While FY1998 expenditures for the Alaska SeaLife Center project were over6.5 million, FY1999 expenditures declined to $165,000. Construction expenditures for the new hospitalfacilitywere $5.1 million in FY1998, and $531,198 in FY1999.
General F n Ex nditares
Total expenditures in the General Fund declined by $361,086 from FY1998 not including transfers to otherfunds. Expenditures for the General Fund were higher in FY1999 for public safety, public works and debt
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Dollar Percent
Amy t
Percent
Increase
Decrease)
Increase
Decrease) General Government
Public Safety 1,569,272 22.3% From FYlggB From Y1998
Public Works 1,975,242 28.0
437,214) 21.8) %
Parks and Recreation 863,536
603,241
12,2
83,404
32,288
4.4
3.9Library
Public Service 234,882
8.
33.3
26,838) 4.3)
Capital Outlay 43,729
970,108
0.6
849
9,315
0.4
27.1DebtService
7 2
13 .8
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11.049,080) 91.9)
513.761 1 84.5
The distribution of general government
i1- 873-5M fir"
expenditures by function is represented in the following graph:
GENERAL GOVERNMENT EXPENDITURES
General, Special Revenue and Capital Project Funds
7,052,277
Public safety 2
Gen'1 Gov't 22.3%
L4,a' =-,
Public Works 12.2% j " \ Debt Service i1.2%
J
Pitt 41,41% , J COPIM Outlay 13.41%
Library 3.3% Public Service 41.41%
The overall decline of $10,873,515 in general government expenditures, which includes the General, SpecialRevenue, Debt Service and Capital Project Funds, is due primarily to a $11,049,080 overall reduction inexpendituresforcapitalprojects. While FY1998 expenditures for the Alaska SeaLife Center project were over6.5 million, FY1999 expenditures declined to $165,000. Construction expenditures for the new hospitalfacilitywere $5.1 million in FY1998, and $531,198 in FY1999.
General F n Ex nditares
Total expenditures in the General Fund declined by $361,086 from FY1998 not including transfers to otherfunds. Expenditures for the General Fund were higher in FY1999 for public safety, public works and debt
x1v
I
1
service, but lower for general government, parks and recreation, and the library. Public safety expenditures
were up $38,073 from the prior year, but came in under budget by over $133,000. Public works expenditures
were up $32,288 from the prior year, but came in under budget by over $82,000. Debt service was up slightly
by $4,506 due to higher interest payments on debt service.
Expenditures for general government declined $418,317, primarily due to sales taxes that were paid to
t
Providence Seward Medical Center for health services during the construction of the new medical center in
FY 1998, while in FY 1999, the majority of the one cent sales tax for hospital purposes was transferred through
an operating transfer from the General Fund to the Debt Service Fund to be used to pay the debt on the bonds
for the new medical facility.
Parks and recreation costs declined $11,485 from the prior year and came in $52,652 under budget. Library
costs were down slightly by $6,151 from the prior year and were $7,860 under budget. Overall, General Fund
expenditures for the year totaled $5,361,621, coming in under budget by $431,474.
General Fund Balance
The General Fund year -end fund balance totaled $3,577,473, an increase of $645,431 from the prior year's
fund balance of $2,932,042. The increase was primarily due to revenues higher than anticipated and
expenditures that were lower than budgeted. In all, the General Fund transferred $805,282 to other funds.
As of June 30, 1999, General Fund revenues exceeded budgeted projections by $516,838, for a total of
6,675,266, and actual expenditures were $431,474 less than budgeted, at $5,361,621. This resulted in an
overall excess of revenues over expenditures of $1,313,645. An analysis of the change in General Fund fund
balance follows:
Fund balance at beginning of the year $ 2,932,042
Excess of revenues over expenditures 1,313,645
Operating transfers (to)/from other funds:
Special Revenue Funds:
Rural Community Fire Protection $ (5,000)
DARE Program (5,201)
Bicycle Safety (350)
High Risk Traffic Enforcement (9,131)
Seward Comprehensive Plan (12,000)
Capital Project Funds:
Capital Acquisition (75,000)
Capital Acquisition 62,146
Hospital Construction (28,310)
911 Equipment Replacement (5,626)
Library Parking Lot (2,022)
Campground ADA & Waterfront Improvements (6,056)
1995 Flood Disaster 1,917
Enterprise Funds:
Electric 12,500
Harbor 137,705
Debt Service: (656,586)
Net other financing sources (uses) (591,014)
Residual equity transfer to other funds:
77 200
1
Fund balance at end of year 7s
XV
Debt AdMinistration ,
At June 30, 1999, the City's outstanding principal on bonded debt totals $17,010,000 (see pages 24 and 25).
This includes $13,910,000 in general obligation bonds -- backed by the full faith and credit of the City -- and '
3,100,000 in revenue bonds. The term `net general obligation bonds' represents only bonds which are to be
repaid through levied taxes, and excludes those general obligation bonds carried on the books of Enterprise
Funds. '
At June 30, 1999, the City has $13,910 million in outstanding general obligation bonds. Of this total,
4,724,360 are recorded in the Enterprise Funds which benefit from the proceeds of said bonds, and include:
1980 electric bonds, 1993 refunding of 1986 electric bonds; and the 1987 Seward Marine Industrial Center '
bonds.
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 are equal to at least 1.3 times the amount required '
each calendar year to pay the principal and interest on all outstanding electric revenue bonds. Annual income
available for revenue bond debt service is defined as: operating revenues less operating expenses before
depreciation and payments in lieu of taxes, plus interest income. For fiscal year 1999, annual income
available for revenue bond debt service was $3,075,784 and the debt service requirement was $255,760, '
resulting in a ratio of 12.03, 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 June 30, 1999 are $772,507 and $20,983, 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 June 30, 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 future sales tax revenues from
one -cent of the City's three -cent sales tax.
The City maintains several lease purchase agreements for the financing of a sand truck, motor grader,
pumper truck, rescue truck, and a 250 -ton 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.
Cash Management
The investment and collateralization of City funds is governed by Section 5.15 of the Seward City Code. The
ordinance clearly identifies safety as the primary concern in the selection and management of the City's
investments.
The City combines all its cash into a Central Treasury, facilitating the investment of combined funds to '
maximize investment earnings. Earrings on these investments are allocated monthly to the funds supplying
the resources for investment.
XVI '
Total City cash and investments at June 30, 1999 were as follows:
Cash on hand $ 2,053
Deposits 79,544
Investments 13,868.645_
Total City cash and investments $33_950.242
Deposits (cash carried on the City's books) are minimized each day, as management sweeps available cash
into an overnight bank instrument investing in repurchase agreements (represented in the investment figure
above). Cash temporarily idle during the year was invested in short -term time deposits, repurchase
agreements and government agency securities. The amount of interest earned by governmental and
proprietary funds in the fiscal year ended June 30, 1999, was $485,996, approximately $225,499 less than
the prior year, as a result of lower interest rates and lower cash balances during the year.
Enterprise Operations
Enterprise funds account for operations that are financed and operated in a manner similar to private
business enterprises, where the costs of providing services to the general public on a continuing basis are
financed or recovered primarily through user charges. The City's Enterprise Funds provide electric, water,
sewer, harbor, and public parking services.
Enterprise Fund fixed assets which are acquired through contributions in aid of construction from granting
agencies and customers, are depreciated over the useful life of the related assets. The related depreciation
expense is included in the computation of net income. The annual depreciation on such contributed plant is
transferred from retained earnings to contributions in aid. Accumulated amortization of contributions in aid
represents the cumulative total of such depreciation transfers.
Utility revenues are based on monthly cycle billings. As a result of this cycle billing method, the utilities do
not accrue revenue at the 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 the direct result of an indirect cost allocation plan, and payments in lieu of tax
are calculated based on 8% of Enterprise Fund operating revenue.
In FY1999, operating revenues in the proprietary funds (including enterprise funds and internal service
funds) increased $288,691 from the prior year, with all funds showing increases except the Water/Sewer
Enterprise Fund. Operating revenues increased $262,869 in the Electric Enterprise Fund, $72,671 in the
Harbor Enterprise Fund, $23,077 in the Parking Revenue Enterprise Fund, and $7,429 in the Motor Pool
Internal Service Fund. Operating revenues in the Water/Sewer Enterprise Fund declined $77,355, primarily
due to a reduction in the ship water tariff.
Operating expenses in the proprietary funds declined $320,602, with Electric Enterprise Fund expenses
declining $398,860, Water and Sewer Enterprise Fund expenses declining $74,831, Harbor Enterprise Fund
expenses increasing $109,910, and Parking Revenue Enterprise Fund expenses increasing $43,179.
eRisk 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
XVII
blanket bond; and time element. The City also maintains special marine insurance coverages and boiler and '
machinery insurance coverages with insurance companies placed through JIA. The JIA provides loss control
services and conducts periodic inspections to ensure safe operations. The City has utilized an established
safety committee to review and recommend safety policies and procedures for all departments. The City '
Council designates a portion of the General Fund fund balance to meet potential losses related to the JIA
basic core coverages and the law enforcement liability pool (LELP). At June 30, 1999, the amount of fund
balance designated for insurance reserves is $335,778, an increase of $156,477 from the prior year. The LELP '
was established by the JIA as a separate insurance pool for law enforcement professional liability, including
jail liability.
1 d nt A ' t t
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 annual audit for fiscal year
1999. The auditor's report on the general purpose financial statements is included in the financial section
of this report. The combining, individual fund and account group financial statements and schedules are '
presented for the purpose of additional analysis. The auditor's report related specifically to the single audit
are contained in a separate document.
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 June 30, 1998. This is the fifth 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 '
Annual 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.
Acknowledgments '
Preparation of the Comprehensive Annual Financial Report could not have been accomplished without the '
efficient and dedicated services of the entire staff of the finance department. We would like to express our
appreciation to all members of the Finance Department who assisted and contributed to the preparation of
this report, with a special thanks to Kristin Erchinger, Controller, Due credit also should be given to the '
mayor and the members of council for their interest and support in planning and conducting the operations
of the City of Seward in a responsible and progressive manner.
Respectfully submitted,
e, i
W. S tt Janke Rick L. Gifford '
City anage Director of Finance and Administrative Services
XVIII '
1
t 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 Government Finance officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAM) achieve the highest
standards in government accounting
and financial reporting.
President
OKI""
Executive Director
XIX
CITY OF SEWARD
LIST OF PRINCIPAL OFFICIALS
Council Members
Lowell R. Satin Mayor
Edgar Blatchford Vice Mayor
Patrick J. Callahan Council Member
Marie Gage Council Member
Jerry King Council Member
Nathan Orr Council Member
Vanta Shafer Council Member
Administratl41l
W. Scott Janke City Manager
Tylan C. Schrock Assistant City Manager 1
Rick L. Gifford Director of Finance and
Administrative Services
Dave Calvert City Engineer and
Utility Manager
James Beckham Harbormaster
Tom Walker Chief of Police
David Squires Fire Chief
Karin J. Sturdy Parks & Recreation Director
Patricia Linville Library Director
Kerry T. Martin Community Development
Director
City Clerk Department
Patrick Reilly City Clerk
Cindy Ecklund Assistant City Clerk
Attorney
Eric E. Wohlforth City Attorney
Wohlforth, Argetsinger, Johnson
Brecht
1
1
XX
i
CITY OF SEWARD
Organizational Chart
Citizens
Mayor &
Council
Boards & City Manager City Clerk City
Commissions Attorney
Planning &
Zoning
Port &
Commerce
Historic
Preservation
1
Police Finance Engineering & Library
Utilities
k
j Harbor j Fire 1 Community Parks &
j Development i ' Recreation
XXI
THIS PAGE LEFT BLANK INTENTIONALLY
PART II
FINANCIAL SECTION
Independent Auditor's Report
General Purpose Financial Statements
Combining, Individual Fund and
Account Group Financial Statements and Schedules
i
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 Report
Honorable Mayor and City Council
City of Seward
We have audited the accompanying general purpose financial statements of City of Seward, Alaska,
as of and for the year ended June 30, 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 and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of City of Seward, Alaska, as of June 30, 1999, and the
results of its operations and the cash flows of its proprietary fund types for the year then ended in
conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated
September 2, 1999 on our consideration of City of Seward, Alaska's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts
and grants.
05 McGLADREY NETWORK
An InAependenlly og Member
11dvnde 6erv ces rn,. R Ir"r"110nd offices: Anchorage, Bethel &Kenai
Honorable Mayor and City Council
City of Seward
Our audit was performed for the purpose of forming an opinion on the ge neral purp ose 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 Schedule of Year 2000 Issues supplementary information is not a required part of the general ,
purpose financial statements but is supplementary information required by the Governmental
Accounting Standards Board. We have applied certain limited procedures, which consisted ,
principally of inquiries of management regarding the methods of measurement and presentation of
the supplementary information. However, we did not audit the information and do not express an
opinion on it. In addition, we do not provide assurance that the City of Seward is or will become '
Year 2000 compliant, that the City of Seward Year 2000 remediation efforts will be successful in
whole or in part, or that parties with which the City of Seward does business are or will become
Year 2000 compliant. '
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
September 2, 1999 '
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.
J
IGENERAL 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 Protect 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.
Notes to General Purpose Financial Statements.
P.
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1-1
Exhibit B -1 I
CITY OF SEWARD
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental Fund Types
Year Ended June 30, 1999
with Comparative Totals for 1998
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
1,542,370 26,902 -
1,914,943 60,299 -
863,536
Totals
597,516 5,725 -
Special Debt Capital Memorandum Only)
215,374
General Revenue Service Proie_ct 1999 1998
Revenues:
970,108 7,052,277 17,925,792
Taxes 3,584,389 3,584,389 3,293,763
Licenses and permits 144,003 144,003 115,106
Intergovernmental 1,021,209 102,209 221,092 1,344,510 7,838,245
Charges for services 1,475,581 1,475,581 1,540,141
Fines and bails 17,347 17,347 14,495
Land sales 254,085 254,085 159,585
Investment income 214,140 14,070 43,646 271,856 464,279
Miscellaneous 218,597 6,932 4,727 230,256 229,586
Total revenues 6,675,266 109,141 14,070 523,550 7,322,027 13,655,200
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
1,542,370 26,902 -
1,914,943 60,299 -
863,536
597,516 5,725 -
227,882 7,000 -
43,729 • -
215,374 576,893
5,361,621 143,655 576,893
1
1
1,569,272
1,975,242
2,006,486
1,891,838
863,536 831,248
603,241 630,079
234,882 234,033
43,729 34,414
792,267 278,506
970,108 970,108 12,019,188
970,108 7,052,277 17,925,792
1,313,645 34,514 56( 2,823) 44( 6,558 269,750 4,2( 70,592)
Other financing sources (uses):
Operating transfers from other funds 214,268 31,682 656,586 331,308 1,233,844 598,366
Operating transfers to other funds 8{ 05,282} - - 278,357 (1,083,639 (447,88
Net other financing sources (uses) 591,014 31,682 656,586 52,951 150,205 150,486
Excess of revenues and other
financing sources over (under)
expenditures and other uses
Fund balances at beginning of year
Residual equity transfers to other funds
Fund balances at end of year
722,631 (2,832) 93,763 (393,607) 419,955 (4,120,106)
2,932,042 32,152 242,332 1,318,692 4,525,218 9,941,034
77,200) - - - (77,200) (1,295,710)
3,577,473 29,320 336,095 925,085 4,867,973 4,525,218
See accompanying notes to general purpose financial statements.
6
I
CITY OF SEWARD
Statement of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual - General Fund
Year Ended June 30, 1999
With Comparative Totals for 1998
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and bails
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Library
Debt service
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Exhibit C -1
1,697,193
1999
154,823 1,960,687
2,048,692 1,914,943
Variance
1,876,870
945,926 863,536
Favorable 1998
Budget Actuai Unfavorable Actual
3,408,044 3,584,389 176,345 3,293,763
127,700 144,004 16,304 115,106
966,654 1,021,209 54,555 1,105,212
1,426,130 1,475,581 49,451 1,540,141
13,000 17,347 4,347 14,495
150,000 214,140 64,140 261,974
66,900 218,596 151,696 147,861
6,158,428 6,675,266 516,838 6,478,552
1,697,193 1,542,370 154,823 1,960,687
2,048,692 1,914,943 133,749 1,876,870
945,926 863,536 82,390 831,248
650,168 597,516 52,652 609,001
235,742 227,882 7,860 234,033
215,374 215,374 210,868
5,793,095 5,361,621 431,474 5,722,707
568,735
365,333 1,313,645 948,312 755,845
Operating transfers from other funds 14,888 214,268 199,380 177,450
Operating transfers to other funds 2( 26,325) 805,282 5_ ( 78,957) 4)
Net other financing sources (uses) 211,437 591,014) 379,577 ) 243,466
Excess of revenues and other financing
sources over (under) expenditures and
other uses 153,896 722,631 568,735 512,379
Fund balance at beginning of year 2,932,042
Residual equity transfers to other funds (77,200)
Fund balance at end of year $ 3,577,473
See accompanying notes to general purpose financial statements.
7
3,715,373
1,295,710
2,932,042
THIS PAGE LEFT BLANK INTENTIONALLY
1
8 1
CITY OF SEWARD
Combined Statement of Revenues, Expenses
and Changes in Retained Earnings -
All Proprietary Fund Types
Year Ended June 30, 1999
With Comparative Totals for 1998
Operating revenues
Operating expenses
Earnings from operations before depreciation
Depreciation
Earnings (loss) from operations
Nonoperating revenues (expenses):
Gain on disposal of property and equipment
Investment income
Land lease
Interest expense
Other revenues
Other expenses
Net nonoperating revenues (expenses)
Earnings before operating transfers
Operating transfers to other funds
Net earnings (loss)
Increase in retained earnings for capitalized assets
constructed in other funds
Amortization of contributed capital
Increase in retained earnings
Retained earnings at beginning of year
Prior period adjustment
Residual equity transfers to other funds
Retained earnings at end of year
Exhibit D -1
193,238)
84,363 ) - (84,363) -
11,856,891 195,487 12,052,378 9,408,994
See accompanying notes to general purpose financial statements.
9
Totals
Internal Memorandum Only)
EnteiRrise Service 1999 1998
9,877,614 169,440 10,047,054 9,758,363
6,695,928 6,695,928 7,016,530
3,181,686 169,440 3,351,126 2,741,833
2,919,718 120,108 3,039,826 2,913,273
261,968 49,332 311,300 171,440)
64,470 64,470 638,828
325,641 16,665 342,306 247,216
175,000 175,000
601,593) 19,801) 621,394) 709,388)
198,311 198,311 948
4,837)
161,829 3,136) 158,693 172,767
423,797 46,196 469,993 1,327
150,205) 150,205) 273,586)
273.592 46,196 319,788 272,259)
123,100 123,100
2,265,400 19,459 2,284,859 2,185,157
2,662,092 65,655 2,727,747 1,912,898
9,279,162 129,832 9,408,994 7,689,334
193,238)
84,363 ) - (84,363) -
11,856,891 195,487 12,052,378 9,408,994
See accompanying notes to general purpose financial statements.
9
Exhibit E -1
CITY OF SEWARD
Combined Statement of Cash Flows -
All Proprietary Fund Types
Year Ended June 30, 1999
With Comparative Totals for 1998
Totals
Internal (Memorandum Only)
Enterprise Service 1999 1998
Cash flows from operating activities:
Earnings (loss) from operations $ 261,968 49,332 311,300 171,440)
Adjustments to reconcile earnings (loss) from operations
to net cash flows from operating activities:
Depreciation 2,919,718 120,108 3,039,826 2,913,273
Other nonoperating revenues (expenses) 372,748 372,748 4,762)
Increase (decrease) in allowance for doubtful receivables 38,853) 38,853) 27,725
Increase) decrease in assets:
Receivables 29,724) 29,724) 100,828)
Assessments receivable 1,956 1,956 3,374
Prepaid expenses 11,537 11,537 9,295)
Inventory 454) 454) 14,716
Increase (decrease) in liabilities:
Accounts payable 186,450) 6,282) 192,732) 132,551
Customer deposits 695 695 60,935
Accrued annual leave 5,966 5,966 774)
Other accrued liabilities 5,552 5,552 10,437)
Due to other funds 70,472) 70,472) 1,742,371)
Deferred revenue 10,433
Retirement incentive program payable 12.317) 12,317 36,951
Net cash flows from operating activities 3,241,870 163,158 3,405,028 1,160,051
Cash flows from noncapital financing activities:
Operating transfers to other funds 150,205) 150,205) 273,586)
Residual equity transfers to other funds 84,363) 84,363)
Decrease in advances to other funds 19,712 19,712 18,521
Decrease in advances from other funds 19,712) 19,7I2) 18,521)
Interest on central treasury borrowings 69,059)
Receipts on loan to Alaska Railroad Corporation 244,310 244,310
Net cash flows from noncapital financing activities 9,742 9,742 3( 42,645)
10
CITY OF SEWARD
Combined Statement 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
Acquisition of property, plant and equipment
Proceeds from sale of property and equipment
Contributed capital
Increase 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
Enterprise
46,713
845,979)
549,921)
1,072,692)
87,727
485,120
3,212,183
563
Exhibit E -1, continued
Totals
lnternal (Memorandum Only)
Service 1999 199
46,713 -
82,490) (928,469) (858,353)
19,801) (569,722) (598,778)
195,983) (1,268,675) (457,987)
87,727 725,000
84,363 569,483 1,522,154
3,212,183 -
563 873
1,363,714 (213,911) 1,149,803 332,909
325,641 16,665 342,306 247,216
Net increase (decreast) in cash and investments 4,940,967 (34,088) 4,906,879 1,397,531
Cash and investments at beginning of year 4,671,287 302,346 4,973,633 3,576,102
Cash and investments at end of year $ 9,612,254 268,258 9,880,512 4,973,633
I
Reconciliation of cash and investments to balance sheet:
Cash and investments:
Current assets
Restricted assets
Noncash capital and related financing activities:
Increase in property, plant and equipment and
contributed capital resulting from transfer
of harbor assets from State
Corrections and reclassifications to:
Property, plant and equipment
Contributed capital
S 9,305,049 268,258
307,205 -
9,612,254 268,258
1,479,397 1,479,397 -
568,483) 568,483) -
598,157) 598,157) -
See accompanying notes to general purpose financial statements.
I1
THIS PAGE LEFT BLANK INTENTIONALLY
12 1
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.
CITY OF SEWARD
Notes to General Purpose Financial Statements
June 30, 1999
1) Summary of Significant Accounting Policies
Organization and Services Provided
The City of Seward, Alaska (the City) was incorporated June 1, 1912 as a home -rule city and
operates under a Council - Manager form of government.
The City provides the full range of municipal services as provided for by Alaska Statute.
This includes police and fire protection, electric, water and wastewater services, library,
parks and recreation, public improvements, planning and zoning, port and harbor, and
general administrative services.
Reporting Entity
in prior years, the City's general purpose financial statements included the Seward General
Hospital as a blended component unit. However, effective July 1, 1996, all Hospital
operations were transferred to Providence Alaska Medical Center, a private health care
provider.
For the year ended June 30, 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
1 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
1 controlled. The various funds are grouped, in the financial statements in this report as
follows:
Governmental Fund Types
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.
1 13
CITY OF SEWARD
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 thePJ
acquisition or construction of major capital facilities and public improvements (other than '
those financed by proprietary funds).
ProprietM Fund Types
Enterprise Funds are used to account for operations (a) that are financed and operated in a
manner similar to private business enterprises where the intent of the governing body is
that the cost (expenses, including depreciation) of providing goods or services to the
general public on a continuing basis be financed or recovered primarily through user '
charges; or (b) where the governing body has decided that periodic determination of
revenues earned, expenses incurred, and/or net income is appropriate for capital
maintenance, public policy, management control, accountability, or other purposes.
The Internal Service Fund is used to account for the financing of goods or services provided 1byonedepartmentoragencytootherdepartmentsoragenciesoftheCityonacost -
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 tdepartmentsoftheCity.
Fiduciga Fund Types IAgencyFundsareusedtoaccountforassetsheldbytheCityinatrusteecapacityorasan
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 fund
type operations (general fixed assets) are accounted for in the General Fixed Assets
i
14 1
1
I
CITY OF SEWA.RD
Notes to General Purpose Financial Statements, continued
Summary of Significant Accounting Policies, continued
Nixed 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 governmental funds.
Because of their spending measurement focus, expenditure recognition for governmental
fund types is limited to exclude amounts represented by noncurrent liabilities. Since they
do not affect current assets, such long -term amounts are not recognized as governmental
fund type expenditures or fund liabilities. They are instead reported as liabilities in the
General Long -Term Debt Account Group.
The two account groups are not "funds." They are concerned only with the measurement of
financial position. They are not involved with measurement of results of operations.
All 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
eamings 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.
t Depreciation for all plant and equipment in the proprietary funds is computed by use of the
straight -line method over the estimated economic lives of the assets.
15
e
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued ,
Summary of Significant 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 e
Improvements other than buildings 10 -50
Equipment 2 -30 ,
Measurement Focus and Basis of Accounting
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
sources have been treated as susceptible to accrual. Expenditures are recognized on the
accrual basis with the exception of principal and interest on general long -term debt, which
are reported only when due.
Proprietary fund types are accounted for on the accrual basis of accounting. Their revenues
are recognized in the period earned and expenses are recognized in the period incurred.
Agency Fund assets and liabilities are accounted for using the modified accrual basis of
accounting similar to that utilized by the governmental fund types.
Proprietary Fund Types and GASB Statement No. 20
Governmental Accounting Standards Board (GASB) Statement No. 20 allows proprietary
activities to elect to follow either GASB pronouncements or Financial Accounting
Standards Board (FASB) pronouncements which are not in conflict with GASB and
have been issued after November 30, 1989. The City has elected to follow only GASB
pronouncements subsequent to November 30, 1989.
Central Treasua I
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
Iamongthefundsbasedontheirrespectivecashbalances.
16 1
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Summary of Sip-nificant Accounting Policiess,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.
Inventory
Inventories are valued at cost in governmental funds and at the lower of cost or market in the
proprietary funds. Cost is determined by the first -in, first -out method. The cost is
recorded as an expenditure at the time individual inventory items are consumed.
Grants and Other Intergovernmental Revenues
In applying the measurable and available concepts to grants and intergovernmental 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 June 30, 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
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 1998 financial statements to make them
comparable with the 1999 presentation. '
Comparative Data
Comparative total data for the prior year have been presented in the accompanying financial ,
statements in order to provide an understanding of changes in the City's financial position
and operations.
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. lnterfund eliminations have not been made in the
aggregation of this data, '
18 1
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Summary of Significant AccountinL7 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 Ipresentedintherelatedfundbalancesheet. The amount of accrued leave recorded as
expenditures in the governmental fund types is the amount accrued during the year that
would normally be liquidated with available spendable resources. Only the current portion
of the liability is recorded in the governmental fund types, with the remainder reported in
the General Long -Term Debt Account Group.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for
expenditures are recorded in order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary integration in the General Fund during the
year. However, it is the City's policy to stop issuing purchase orders in early June.
Outstanding purchase orders, if any, at June 30, are cancelled and new ones are issued in
the subsequent year. As a result, there are no outstanding encumbrances at June 30, 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 1998 financial statements to make them
comparable with the 1999 presentation. '
Comparative Data
Comparative total data for the prior year have been presented in the accompanying financial ,
statements in order to provide an understanding of changes in the City's financial position
and operations.
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. lnterfund eliminations have not been made in the
aggregation of this data, '
18 1
CITY OF SEWARD
Notes to General Pur?ose Financial Statements, continued
2) Stewardship, Compliance and Accountabii ly
Budgetary Accountin
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 Appropriations A ro riation
General Fund $ 6,188,981 6,019,420
The following funds had deficits in fund balance at .tune 30, 1999:
Emergency Shelter Supplies Special Revenue Fund $ 1,000
Gateway Subdivision Capital Project Fund $ 44
3) Cash and Investments
The City of Seward utilizes a central treasury that is available for use by all funds. Each
fund's portion of the central treasury is displayed on the balance sheet as "cash and
investments" or included in "due to other funds."
qp
At year end, the carrying amount of the City's deposits was $79,544 and the bank balances
totaled $171,275. 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.
1 19
i
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Cash and Investments, continued
Investments, continued
Category 1
Insured or registered, or securities held by the City or its agent in the City's name.
Category 2
Uninsured and unregistered, with securities held t y the counterparty's trust department
or agent in the City's name.
Category 3
Uninsured and unregistered, with securities held by the counterparty, or by its trust
department or agent, but not in the City's name.
Cate o
1 2 3 Total
Overnight repurchase
agreement $ - 6,201,902 - 6,201,902
U.S. government securities 500,000 7,166,743 - 7,666,743
QQ,4_Q 13.368.645 1
Restricted Cash
The City also maintains electric bond redemption and reserve accounts as required by the
bond covenants. The balance in these accounts at June 30, 1999 totaled $307,205 and is
included in investments.
A reconciliation of cash and investments as shown on the combined balance sheet follows:
Cash on hand $ 2,053
Carrying amount of deposits 79,544
Carrying amount of investments 13,868,645
13.950.242
Cash and investments as shown on the i
combined balance sheet;
Cash and investments $ 13,643,037
Restricted - cash and investments 307,205assets
1
20
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
4) Fixed Assets
A summary of changes in general fixed assets follows:
Balance at Balance at
July 1. 1998 Additions Deletions June 30, 1999
Land and land rights $ 3,622,374 475,055 227,009 3,870,420
Buildings 6,139,715 47,689,518 170,307 53,658,926
Improvements other than buildings 8,556,362 1,900,344 10,456,706
Equipment 17177771 1,147,332 12,692 2,852,411
Fixed assets in service 20,036,222 51,212,249 410,008 70,838,463
Construction in progress 611. 631726 712,736 4 ,096,501 8 79 96
A summary of proprietary fund type property, plant and equipment at June 30, 1999 follows:
Internal
Enterprise Service
Funds Fund
Land and land rights 15,754,269
Buildings 4,651,320
1 Improvements other than buildings 37,177,707
Equipment 41,442,540 1,255,045
Docks and floats 1634,2,503
115,368,339 1,255,045
Less accumulated depreciation 39,366,470} 55( 3.4.04)
76,001,869 701,641
Construction in progress 818358
Property, plant and equipment, net
5) Interfund Receivables and Payables
Interfund receivable and payable balances at June 30, 1999, are as follows:
Interfund Interfund
Receivables Pay blcs
General Fund 34,242
Special Revenue Funds:
Bicycle Safety 581
Emergency Shelter Supplies 5,861
Flood Mitigation
High Risk Traffic Enforcement
2,126
18,396
Historic Records Preservation Phase 11 5,751
Seward Community Cemetery 1,094
Seward Association for Advancement
of Marine Science Capital Project Fund 433
Enterprise Funds:
Water and Sewer 46,713
Harbor 46,713
Totals S $0.25.5 V19Z
21
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
6) Operating Transfers
A summary of operating transfers between funds for the year ended June 30, 1999 follows:
From To
Other Other
Funds Funds
General Fund:
Special Revenue Funds:
Bicycle Safety 350
Rural Community Fire Protection 5,000
High Risk Traffic Enforcement 9,131
DARE Program 5,201
Seward Comprehensive Plan 12,000
Capital Project Funds:
Capital Acquistion 62,146 75,000
Hospital Construction 28,310
911 Equipment Replacement 5,626
Library Parking Lot 2,022
Campground ADA and Waterfront Improvements 6,056
1995 Flood Disaster 1,917
Enterprise Funds:
Electric 12,500
Harbor 137,705
Debt Service 656.58
Total General Fund 214,268 805,282
Special Revenue Funds from General Fund:
Bicycle Safety 350
Rural Community Fire Protection 5,000
High Risk Traffic Enforcement 9,131
DARE Program 5,201
Seward Comprehensive Plan 12,000
Total Special Revenue Funds 31,682
Debt Service Fund from General Fund 656,586
Capital Project Funds:
From/to General Fund):
Capital Acquisition 75,000 62,146
Hospital Construction 28,310
911 Equipment Replacement 5,626
Library Parking Lot 2,022
Campground ADA and Waterfront Improvements 6,056
1995 Flood Disaster 1,917
22
F
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Operatine Transfers, continued
Capital Acquisition Fund to other Capital Project Funds:
Capital Acquisition $
Fuel Tank
Campground ADA and Waterfront Improvements
Hoben Park
Sidewalks/Curbs
Total Capital Project Funds
Enterprise Funds to General Fund:
H bo
From
Other
Funds
35,000
103,794
50,000
25,500
331,308
ar r -
Electric
Total Enterprise Funds -
Total operating transfers $ $
To
Other
Funds
214,294
278.357
137,705
12,500
150,205
1,233.8
7) Residual Equity Transfers
A summary of residual equity transfers between funds for the year ended June 30, 1999 follows:
Electric - 31,420
Water and Sewer - 20,000
Harbor - 32,943
Motor Pool from Enterprise Funds 84,363
Total residual equity transfers $113 A
The residual equity transfers from other funds were recorded in contributed capital.
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
202,672 at June 30, 1999) is recorded in the General Long -Term Debt Account
Group. The City's policy is to make no distinction between vacation and sick leave as
accrued leave includes both types.
23
From To
Other Other
Funds Funds
General Fund to Harbor Enterprise Fund 77,200
Harbor Enterprise Fund from General Fund 77,200
Enterprise Funds to Motor Pool Internal
Service Fund:
Electric - 31,420
Water and Sewer - 20,000
Harbor - 32,943
Motor Pool from Enterprise Funds 84,363
Total residual equity transfers $113 A
The residual equity transfers from other funds were recorded in contributed capital.
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
202,672 at June 30, 1999) is recorded in the General Long -Term Debt Account
Group. The City's policy is to make no distinction between vacation and sick leave as
accrued leave includes both types.
23
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Lone -Term Debt, continued
Accrued Leave, continued
A summary of the change in the long -term portion of accrued annual leave follows:
Balance at July 1, 1998 $ 194,026
Increase 8.646
Balance at June 30, 1999 $ 202M
9) Lone -Term Debt
General_ Obligation Bonds
The City has issued general obligation bonds to provide fu ids 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. General obligation bonds at June 30, 1999 are as follows:
Interest
Rates Amount
1,700,000 1980 electric serial
bonds, due in annual installments
of S 145,000 to $155,000, through
January 1, 2001
475,000 1990 general government serial
bonds, due in annual installments of
70,000 to $75,000 through
December 1, 2000
53,990,000 1993 refunding electric
serial bonds, due in annual installments
of $435,000 to $560,000 through
October 1, 2004
2,030,000 1993 refunding harbor/
general government serial bonds for
the 1987 bonds, Series A, due in
annual installments of $160,000 to
240,000 through December I, 2007
1,465,000 1993 refunding general
government serial bonds for the 1990
bonds, Series A, due in annual
installments of $15,000 to S 165,000
through December 1, 2011
7,500,000 1996 hospital serial bonds,
due in annual installments of $205,000
to $625,000 through October 1, 2013
24
7%
7.1 % to 7.375%
4,75% to 5.35%
4.75% to 5.65%
4.75% to 5.8%
4.75% to 6.75%
300,000
145,000
2,975,000
1,760,000
1,405,000
7.325.000
13.91Q.0
1
CITY OF SEWARD
Financial Statements, Notes to General Purpose continued
Lonp.-Term Debt, continuedIRevenuebondprincipaland interest are payable from resources generated by a particular
government operation such as a public utility. Revenue bonds at June 30, 1999 are as
follows:
Interest
Rates Amount
3,225,000 1995 Electric Fund serial bonds,
due in annual installments of $100,000
to $290,000 through June 1, 2015 4.85% to 7.35% $ 3.100,000
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 $ 13,910,000
Less unamortized loss on 1993 refunding bonds 2..98,119)
13,611,881
Revenue bonds 3,100,000
1 1S1
Annual 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
June 30, Principal Interest Principal Interest Principal Interest
2000 $ 811,760 412,812 318,240 495,255 1,130,000 908,067
2001 875,877 367,081 354,123 477,424 1,230,000 844,505
2002 754,995 316,137 390,005 458,325 1,145,000 774,462
2003 807,348 273,026 432,652 437,761 1,240,000 710,787
2004 855,583 230,547 479,417 414,685 1,335,000 645,232
2005 3,718,797 992,649 7,211,203 2,136.019 10,930,000 3, 128,6682015
I
7.824.360 21$5 M 4.414.4G9 i7• too.00 X41
1 25
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Long Term Debt, continued
Notes payable by the Water and Sewer Enterprise Fund at June 30, 1999 are as follows:
Interest
Rates Amount
26,231 note payable to State of Alaska
Department of Environmental Conservation,
due in annual installments of $1,312
through July 15, 2014 4.75% $ 20,983
901,851 note payable to State of Alaska
Department of Environmental Conservation,
due in annual installments, including interest,
of $70,995 through November 5, 2013 4.31% 772„507
Annual debt service requirements to maturity on notes payable are as follows:
793.490 1
Year Ending 4.75% Note Payable 4,31 % Note Payable Total
June 30, Principal Interest Principal Interest Principal .ncipal Interest
2000 1,312 997 37,700 33,295 39,012 34,292
2001 1,312 934 39,324 31,670 40,636 32,604
2002 1,312 872 41,019 29,975 42,331 30,847
2003 1,312 810 42,787 28,207 44,099 29,017
2004 1,312 748 44,631 26,363 45,943 27,111
2005 -2015 14,423 4,111 567,046 142,901 581,469 147,012
20.483 7 41 7 X83
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 June 30, 1996 resulted in the termination of all Hospital 'employees. The City
assumed the obligation for the additional pension contributions for Hospital employees
vested in the State of Alaska Public Employees Retirement System at June 30, 1996.
At June 30, 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.
26
L
1 Enterprise Funds
CITY OF SEWARD
General obligation bonds 5,397,885 673,525
Notes to General Purpose Financial Statements, continued
Lone-Term Debt continued
3,175,000
Defeasance of Debt
3,100,000
In 1993, the City of Seward defeased certain general obligation bonds by placing the
595,000
proceeds of new bonds and other available funds in irrevocable trusts to provide for all
535,000
future debt service payments on the old bonds. Accordingly, trust account assets and
36,951
liabilities for defeased bonds are not included in the City's financial statements.
Notes payable
The following general obligation bonds and the balance as of June 30, 1999, are
37,454
considered defeased:
General government $ 1,280,000
Changes in Long -Term Liabilities
During the year ended June 30, 1999, the following changes occurred in long -term
liabilities:
Balance at Balance at
July 1, 1998 Additions Reductions June 30, 1999
General Government
Compensated absences $ 194,026 8,646 - 202,672
General obligation bonds 9,467,115 281,475 9,185,640
Retirement incentive program 43,810 - 14,603 29,207
1 State of Alaska 1,082,570 - - 1,082,570
1 Enterprise Funds
I
Internal Service Fund -
Capital leases $ 41 4_
General obligation bonds 5,397,885 673,525 4,724,360
Revenue bonds 3,175,000 75,000 3,100,000
Capital leases 595,000 60,000 535,000
Retirement incentive program 36,951 12,317 24,634
Notes payable 830,944 37,454 793490
858,296 9,177,484
I
Internal Service Fund -
Capital leases $ 41 4_
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Lone-Term Debt,_ continued
Revenue Bond Requirements
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
annual debt service on the bonds. This amount at June 30 was $307,205 and will
remain at that level until the bonds mature in 2015.
The revenue bond issue requires that electric rates be maintained at a level that will make
annual income available for revenue bond debt service equal to at least 1.3 times the
amount required each such calendar year to pay the principal and interest on all
outstanding electric revenue bonds. Annual income available for revenue bond debt
service is equal to operating revenues less operating expenses before depreciation and
payments in lieu of taxes plus investment income. For fiscal year 1999, annual income
available for revenue bond debt service was $3,075,784, the debt requirement was
255,760, resulting in a ratio of 12.03. The City is in compliance with the annual
income requirement for fiscal year 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 June 30, 1999:
Machinery and equipment
Less accumulated depreciation
Carrying value
1
C
7
L
I
28 1
Internal
Enterprise Service
Funds Fund
856,546 701,447
256,968) 236,965)
1
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7
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I
28 1
CITY OF SEWARD
INotes 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 June 30, 1999:
Internal
Year Ending Enterprise Service
June Q —Fund-q Fund
Long -term portion $ 4 S OOQ
11) Retirement Incentive Program
In August 1997, the City elected to participate in the Public Employees' Retirement
System retirement incentive program. The program requires the City to pay $80,761 to
the State of Alaska, payable in three installments of $26,920 on August 1, 1998, 1999,
and 2000. The balance payable at June 30, 1999 was $53,841.
12) Defined Benefit Pension Plan
Description of Plan
The City participates in the Public Employees' Retirement System (PERS), an agent multiple
employer plan which covers eligible State and local government employees. The plan
was established and is administered by the State of Alaska to provide pension,
postemployment healthcare, death, and disability benefits. Benefit and contribution
provisions are established by State law and may be amended only by the State
Legislature.
1 29
2000 99,275 102,290
2001 99,588 94,815
2002 99,682 73,134
2003 99,534 52,952
2004 98,953 22,064
Thereafter 201,258
Total minimum lease payments 698,290 345,255
Less interest 163.290 33,627
Present value of future minimum
lease payments 535,000 311,628
Less current portion 6_ 000 87,257
Long -term portion $ 4 S OOQ
11) Retirement Incentive Program
In August 1997, the City elected to participate in the Public Employees' Retirement
System retirement incentive program. The program requires the City to pay $80,761 to
the State of Alaska, payable in three installments of $26,920 on August 1, 1998, 1999,
and 2000. The balance payable at June 30, 1999 was $53,841.
12) Defined Benefit Pension Plan
Description of Plan
The City participates in the Public Employees' Retirement System (PERS), an agent multiple
employer plan which covers eligible State and local government employees. The plan
was established and is administered by the State of Alaska to provide pension,
postemployment healthcare, death, and disability benefits. Benefit and contribution
provisions are established by State law and may be amended only by the State
Legislature.
1 29
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued '
Defined Benefit Pension Plan, continued IDescriptionofPlan, continued
The plan is included in a comprehensive annual financial report that includes financial
statements and other required supplemental information. The report is available at the Ifollowingaddress:
Department of Administration ,
Division of Retirement and Benefits
P.O. Box 110203
Juneau, AK 99811 -0203 '
Funding Folic
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 5.51%
Postemployment '
healthcare 2.05%
Total contribution rate Z.IikN I
Under the plan, employer contribution rates are level percentages of payroll and are
determined using the projected unit credit actuarial funding method. The plan uses the '
level dollar method to amortize the unfunded liability over an open, rolling twenty -five
year period. Funding surpluses are amortized over five years.
Annual Pension Cost ,
For the year ended June 30, 1999, the City's annual pension cost of $222,230 for PERS
was equal to its required and actual contributions. '
30 1
CITY OF SEWARD
Notes to Genera! Purpose Financial Statements, continued
1 31
Defined Benefit Pension Plan continued
Annual 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, compounded annually, net of expenses;
2. Projected salary increases of 5.5% for the first five years of employment and
4.5% per year thereafter;
3. Health cost inflation of 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
5. Asset valuation -- assets are valued at fair value; the asset valuation method
recognizes 20% of the investment gain or loss in each of the current and preceding
four years.
Three -year trend infonnation for PERS follows:
Fiscal Annual Percentage Net
Year Pension of APC Pension
Ending Cost (AM Contributed Obligation
June 30, 1997 $ 241,250 100% $ -
1 998 143,685 100%
1999 222,230 100%
1 31
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Defined Benefit Pension Plan, continued
A schedule of funding progress for PERS follows:
Unfunded
Assets in
Excess of)
Unfunded Liability as
Actuarial Actuarial Actuarial (Assets in Percentage
Valuation Value of Accrued Excess of) Funded Covered of Covered
Date Assets Liabilily Liabili Ratio Payroll Payroll
June 30, 1996:
Pension $ 8,616,000 8,036,000 (580,000) 107% 3,100,000 (19 %)
Postemployment
healthcare 3,320,000 3,097,000 (223,000) 107% 3,100,000 (7 %)
June 30, 1997:
Pension 9,624,000 8,922,000 (702,000) 108% 2,977,000 (24 %)
Postemployment
healthcare 3,587,000 3,325,000 (262,000) 108% 2,977,000 (9 %)
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 Brotherhood of Electric Workers
Certain Electric Fund employees are members of the International Brotherhood of
Electrical Workers, which maintains its own defined contribution pension plan. The
City's contribution rate for 1999 was $3 per compensable hour for a total contribution
of $37,327.
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.
32
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Deferred Compensation Plan continued
During FY97, the City amended their deferred compensation plan in accordance with
changes in the Internal Revenue Code. These new provisions require that all assets and
income of the plan be held in trust for the exclusive benefit of participants and their
beneficiaries.
1 S) Risk Manay-em_ ent
The City faces a considerable number of risks of loss, including (a) damage to and loss of
property and contents, (b) employee torts, (c) professional liability; i.e., errors and
omissions, (d) environmental damage, (3) workers' compensation; i.e., employee injuries,
and (f) medical insurance costs of employees. Commercial policies, transferring the risk
of loss, except for relatively small deductible amounts, are purchased for employee
medical costs.
The City is a member of the Alaska Municipal League Joint insurance Association (JIA), a
governmental insurance pool established by the Alaska Municipal League. The JIA
provides the City coverage for property, including building and contents, automobiles,
mobile equipment and data processing equipment; casualty, including general liability,
public officials and employees liability, law enforcement professional liability, auto
liability and employee benefit 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 annual deposit contribution in
comparison to the aggregate annual deposit contributions of all members. The
Association made no supplemental assessments during the year ended June 30, 1999.
The JlA provides loss control services and conducts periodic inspections to ensure safe
operations. The City has utilized an established safety committee to review and
recommend safety policies and procedures for all departments. The City Council
designates a portion of the General Fund balance to meet potential losses related to the
JIA basic core coverages and the law enforcement liability pool (LELP). LELP was
established by the JIA as a separate insurance pool for law enforcement professional
liability, including Jail liability.
1
33
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Risk Man aeement, continued
There was no significant reduction in the City's major categories of risk insurance coverage
from the prior year, and the amount of settlements for the past three fiscal years did not
materially exceed the City's insurance coverage.
16) Changes in Contributed Caaital
A summary of changes in contributed capital for the ended June 30, 1999 follows: year
Balance at Balance at
July 1, 1998 Additions Deletions June 30, 1999
Enterprise Funds:
Electric $ 22,716,571 73,596 25,619 22,764,548
Water and Sewer 11,700,169 - 123,100 11,577,069
Harbor 54,731,592 2,014,021 598,157 56,147,456
Total Enterprise Funds $ 2.087.617
Internal Service Fund $ 4 7. M'
A summary of changes in accumulated amortization of contributed capital follows:
Balance at Balance at
July 1, 1998 Additions Deletions June 30, 1999_
Enterprise Funds:
Electric $ 6,171,091 779,519 25,619 6,924,991
Water and Sewer 5,101,362 292,718 - 5,394,080
Harbor 13,753,712 1,193,163 - 14,946,875
Total Enterprise Funds $ 25.026.165 22 54Q4 21
Internal Service Fund $ 4.86 19.42 24.324
17) Segment Information for Proprietary Fund Types
Enterprise Funds
The City maintains four enterprise funds, which provide electric, water and sewer, harbor
and public parking services. Segment information for the year ended June 30, 1999
follows:
34
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Segment Information for Proprietary Fund Types, continued
Total
Water Parking Enterprise
Electric And Sewc Harbor Revenue Funds
Total operating revenues $ 6,538,109 1,355,171 1,893,672 90,662 9,877,614
Depreciation expense 1,195,174 375,474 1,349,070 2,919,718
Operating income (loss) 1,175,357 168,143 (1,084,984) 3,452 261,968
Net operating transfers
from (to) other funds (12,500) - (137,705) - (150,205)
Net earnings 926,604 201,751 (859,872) 5,109 273,592
Current capital
contributions 73,596 - 2,014,021 - 2,087,617
Property, plant and
equipment additions 340,571 38,399 2,173,119 - 2,552,089
Property, plant and
equipment deletions 24,920 84,672 501,336 610,928
Working capital
surplus (deficiency) 4,403,486 1,600, l89 (194,686) 40,698 5,849,687
Total assets 29,812,342 10,252,551 48,115.649 45,586 88,226,128
Bonds and Other long -term
liabilities 6,375,000 793,490 1,984,360 - 9,152,850
Fund equity 22,860,827 9,399,893 42,778,600 40,698 75,080,018
18) Harbor Enterprise Fund
During the current year, 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 June 30, 1999, $3,118,392 of the amount remained
unexpended and is included in deferred revenue in the Harbor Enterprise Fund.
19) Conduit Debt- Revenue Bonds
On December 10, 1990, the City participated in the issuance of $7,300,000 of Variable
Rate Demand Revenue Bonds, Series 1991 for Alaska Pacific University (APU). The
proceeds of the issue were used to refinance previous debt held by Alaska 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.
n
1 35
21) 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. '
36 1
1
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Conduit Debt - Revenue Bonds, continued
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
SHAMS), an Alaska nonprofit corporation, to finance a portion of the costs incurred to
construct, install and equip the Alaska Sealife Center Project (the Center). The bonds are
special obligations of the City, payable solely from payments made by SAAMS under the
loan agreement. The bonds do not constitute a general obligation debt or pledge of the full
faith and credit of the City and, accordingly the bonds are not reflected in the
accompanying financial statements.
The Center is a marine research facility, rehabilitation center, and public education and
visitor facility located in Seward. The total cost of the Project is approximately
55,000,000. Approximately $37,500,000 of total Project costs will be paid from equity
contributions from grants from the State of Alaska and from Exxon Valdez oil spill
settlement monies. The remaining $17,500,000 of Project costs will be paid from bond
proceeds. The Center and the property on which it is located are owned by the City,
SAAMS has leased the Center and the property from the City and will operate the Center
in accordance with an Operating Lease between the City and SAAMS.
A schedule of the debt outstanding at June 30, 1999 follows:
SAAMS
17,223,710
20) 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
included the facility in its fixed assets. has not the value of general
21) 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. '
36 1
1
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Commitments and Contineencles, continued
Various other claims and lawsuits against the city are pending, but are either covered by
insurance or are the type which are normal and reasonable in view of the City's operations.
City management believes the total amount of the liability, if any, which may arise from
such claims and lawsuits beyond that which is covered by insurance would not have a
material effect on the City's financial condition or its ability to carry on its activities
substantially as now conducted.
A(22) Prior Period Adjustment
During the current year, an adjustment was made effective July 1, 1997 to reduce retained
earnings and increase accumulated amortization of contributed capital in the Water and
Sewer Enterprise Fund by $193,238. The adjustment resulted from having used a shorter
life in prior years to amortize contributed capital than was being used to depreciate the
applicable assets.
23) Restatement of Retained Earnings and Contributed Capital
During the prior year, the General Fund made a transfer to the Harbor Enterprise Fund of
1,295,710. This was treated as an operating transfer and increased the Harbor Enterprise
Fund's retained earnings. During the current year it was determined that the transfer
would be more appropriately classified in contributed capital. As a result, the operating
transfers, retained earnings, and contributed capital have been restated for FY98 to reflect
this change.
24) Subsequent Event
On October 6, 1998, the voters of Seward approved changing the City's year end to
December 31. Beginning January 1, 2000, the fiscal year of the City shall begin on
January 1 of each year.
1 37
1
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I
38 1
COMBINING,
INDIVIDUAL FUND
AND
ACCOUNT GROUP STATEMENTS
AND SCHEDULES
1
1
38 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.
CITY OF SEWARD
General Fund
Balance Sheet
June 30, 1999
With Comparative Amounts for 1998
As e
Cash and investments
Prepaids
Inventory
Due from other funds
Liabilities and Fund Balance
Receivables:
Taxes:
56,316
Personal property
8,993
Accrued annual leave
Less allowance for doubtful receivables
Accrued liabilities
78.§65
Net personal property
726.472
Motor vehicle
Hotel /motel room
Real property
Total liabilities
Sales
243,372
Payments in lieu of taxes
241,660
Net taxes
241,660)
Accounts
Unreserved:
Less allowance for doubtful receivables
Net accounts
146,199
Property assessments
1,330,617 1,091,550
Less allowance for doubtful receivables
Net property assessments
Grants - State
Accrued interest
Total fund balance
Total receivables
Prepaids
Inventory
Due from other funds
Liabilities and Fund Balance
39
Exhibit F -1
1999 1998
S 2,705,215 2 227 7 k
31,937 49,156
28,197) (43,868j
3,740
Liabilities:
Accounts payable
56,316
Salaries and wages payable
8,993
Accrued annual leave
Accrued liabilities
78.§65
Funds held in trust
726.472
Deferred revenues
246,355 222,420
Total liabilities
4,422)
243,372
Fund balance:
241,660
Reserved for inventory and prepaids
241,660) 241,660)
Unreserved:
214,574
Designated;
146,199
Working capital
1,330,617 1,091,550
Insurance
Undesignated
Total fund balance
39
Exhibit F -1
1999 1998
S 2,705,215 2 227 7 k
31,937 49,156
28,197) (43,868j
3,740 5,288
4,203 7,800
56,316 52,402
8,993 11,445
574,555 514,972
78.§65
42,449
726.472 191,907
246,355 222,420
2,983) 4,422)
243,372 217,998
241,660 241,660
241,660) 241,660)
214,574 239,926
146,199 41,719
1,330,617 1,091,550
1,637 5,326
4,643 4,718
34,242 122,544
S 4,076.354 3,451,851
343,753 328,135
70,862 85,367
22,807 49,402
10,966 7,059
10,203 7,397
40,290 42,449
498,881 519.809
6,280 4,718
1,500,000 1,500,000
335,778 179,301
1.735,415 1,248,023
3,577,473 2,932,042
S 4,076,354 3,451,851
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures
and Changes in Fund Balance
Year Ended June 30, 1999
With Comparative Amounts for 1998
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and bails
Investment income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Library
Debt service
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Operating transfers from other funds
Operating transfers to other funds
Net other financing sources (uses)
Excess of revenues and other financing
sources over (under) expenditures and other uses
Fund balance at beginning of year
Residual equity transfers to other funds
Fund balance at end of year
40
Exhibit F -2
1999 1998
3,584,389 3,293,763
144,003 115,106
1,021,209 1,105,212
1,475,581 19510,141
17,347 14,495
214,140 261,974
218,597 147,861
6,675,266 6,478,552
1,542,370 1,960,687
1,914,943 1,876,870
863,536 831,248
597,516 609,001
227,882 234,033
215,374 210,868
5,361,621 5,722,707
1,313,645 755,845
214,268 177,450
805,282) 420,916}
591,014 ) (243,466
722,631 (512,379)
2,932,042 3,715,373
77,200 (1,295,710)
3,5 77,473 2,932,042
t
t
Licenses and penntts:
Building permits 50,000 67,389 17,389
Exhibit F -3
Taxi permits
CITY OF SEWARD
1,881 1,181 910
Department of Motor Vehicles commissions
General Fund
53,314 3,314 57,701
Animal control licenses
Statement of Revenues, Expenditures and
525 475) 955
Business licenses
Changes in Fund Balance - Budget and Actual
19,530 5,470) 22,110
Miscellaneous
Year Ended June 30, 1999
1,365 365 1,160
Total licenses and permits
with Comparative Amounts for 1998
144,004 16,304 115,106
Intergovernmental:
General revenue sharing 223,962
1999
8,285)
1998
Safe communities 122,328 124,252
Variance
128,766
Jail contract
Bu Actual
Favorable
Unfavvrablel Actual
Revenues:
48,500 48,500 48,500
Taxes:
48,000 48,000 48,000
Property S 495,100 523,993 28,893 518,788
Sales 1,911,756 2,029,485 117,729 1,820,230
Payments in lieu of taxes 852,111 864,106 11,995 799,978
Penalty and interest 7,750 3,475 4,275) 6,556
Hotcl,motel room 141,327 163.330 22,003 148,211
Total taxes 3,408,044 3.584.389 176.345 3.293,763
Licenses and penntts:
Building permits 50,000 67,389 17,389 32,270
Taxi permits 700 1,881 1,181 910
Department of Motor Vehicles commissions 50,000 53,314 3,314 57,701
Animal control licenses 1,000 525 475) 955
Business licenses 25,000 19,530 5,470) 22,110
Miscellaneous 1,000 1,365 365 1,160
Total licenses and permits 127,700 144,004 16,304 115,106
Intergovernmental:
General revenue sharing 223,962 215,677 8,285) 255,333
Safe communities 122,328 124,252 1,924 128,766
Jail contract 363,464 363,465 1 363,464
Dispatch contract 48,500 48,500 48,500
Police and fire contracts 48,000 48,000 48,000
NPS dispatch contract 500 500
Raw fish tax 140,000 197,792 57,792 238,850
Fisheries landing tax 3,023 3,023
Liquor tax 20,000 19,250 750) 13,950
Amusement tax 400 400) 127
Parks and recreation grant 750 750 8,222
Total intergovernmental 966,654 1,021,209 54,555 1,105,212
Charges for services:
Administrative 865,090 927,159 62,069 968,461
Rents and leases 80,400 81,980 1,580 114,479
Copying charges 34,500 31,502 2,998) 38,639
Work orders 66,000 47,734 18,266) 57,427
Recreation 360,290 365,125 4,835 339,367
Library 5,950 6,458 508 5,706
Other
Total charges for services
13,900
1,426,130
15,623
1,475,581
1,723
49,451
16,062
1,540,141
Fines and bails 13,000 17,347 4,347 14,495
Investment income 150,000 214,140 64,140 261,974
Miscellaneous:
Sale of land, equipment and gravel 30,000 13,382 16,618) 35,717
Refuse contract 30,000 43,975 13,975 39,199
Other 6,900 161,239 154,339 72,945
Total miscellaneous 66,900 218,596 151,696 147,861
Total revenues 6,158,428 6,675,266 516,838 6,476,552
41
Exhibit F -3 continued
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
1999 1998
Variance
Favorable
Budrzet Actual Unfavorable Actual
Expenditures:
General government:
Mayor and council:
Salaries 18,000 17,969 31 18,450
Employee benefits 1,649 1,638 11 1345
Audit 37,600 37,600 37,600
Legal 148,000 135,060 12,940 122,068
Supplies and maintenance 21,300 16,067 5,233 22,828
Legislative representation 104,451 121,415 16,964) 122,322
General and administrative 44,800 39,158 5,642 43,275
Capital outlay 3,000 2,899 101
Total mayor and council 378,800 371,806 6,994 367,888
City manager:
Salaries 155,301 150,157 5,144 142,708
Employee benefits 47,602 48,520 918) 35,220
Purchased services 3,500 2,158 1,342 3,057
Supplies and maintenance 10,850 4,797 6,053 4,590
General and administrative 24,100 32,050 7,950) 45,512
Capital outlay 3,136
Total city manager 241,353 237,682 3,671 234,223
City tclerk:
Salaries 89,241 83,385 5,856 80,227
Employee benefits 31,266 30,440 826 25,108
Purchased services 1,600 1,163 437 2,469 t
Supplies and maintenance 500 54 446
General and administrative 11,500 4,877 6,623 7,866
Total city clerk 134,107 119,919 14,188 115,670
Finance:
Salaries 302,938 264,765 38,173 258,240
Employee benefits 122,508 105,845 16,663 105,691
Purchased services 10,625 5,795 4,830 8,809
Supplies and maintenance 46,100 32,666 13,434 38,417
General and administrative 28,900 28,288 612 22,293
Capital outlay 15,950 11,172 4,778 6,787
Total finance 527,021 448,531 78,490 440,237
42
1 Exhibit F -3 continued
CITY OF SEWARD
43
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
1999 1998
Variance
Favorable
Budget Actual Unfavorable Actual
Expenditures, continued:
General government, continued:
Community development:
Salaries 95,460 80,949 14,511 84,575
Employee benefits 34,652 33,522 1,130 29,760
Purchased services 13,054 10,622 2,432 11,298
Supplies and maintenance 5,700 3,368 2,332 5,905
General and administrative 4,800 5,045 245) 4,050
Total community development 153,666 133,506 20,160 135,588
General services:
Employee benefits 2,100 2,100
Purchased services 77,850 58,922 18,928 41,914
Supplies and maintenance 21,107 12,511 8,596 17,385
General and administrative 40,771 37,725 3,046 37,703
Total general services 141,828 111,258 30,570 97,002
Contributions to civic organizations:
Joint Conference Center 10,500
Providence Seward Medical Center 69,481 69,481 487,204
Wesley Rehabilitation and Care Center 35,548 35,548 37,357
Seward Life Action Council
Senior Citizens
12,389
11000
12,389
1,000
13,018
1,000
Museum 1,000 1,000 1,000
Chamber of Commerce
Miscellaneous 11 000 250 750
20,000
Total contributions to civic organizations 120,418 119,668 750 570,079
Total general government 1,697,193 1,542,370 154,823 1,960,687
Public safety:
Police:
Salaries 674,871 603,321 71,550 618,255
Employee benefits 273,349 255,034 18,315 217,610
Purchased services 65,963 62,403 3,560 49,955
Supplies and maintenance 31,500 26,984 4,516 36,238
General and administrative 17,450
1,063,133
19,654
967,396
2,204)
95,737
19,949
942,007Totalpolice
43
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
Expenditures, continued:
Public safety, continued:
Jail:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total jail
Animal control:
Salaries
Purchased services
Supplies and maintenance
General and administrative
Total animal control
Fire:
Exhibit F -3, continued I
1999
Variance
Favorable
Budget Actual (Unfavorable)
1998
Actual 1
218,133 197,722 20,411 200,692
97,414 90,552 6,862 77,492
20,900 18,048 2,852 20,373
5,370 6,093 723) 8,988
72,112 71,635 477 70,471
413,929 384,050 29,879 378,016
2,787)
51,110 50,631 479 51,847
36
570 (570) 398
51,110 51,201 _(9, 49,494
Salaries 113,244 113,834 590) 122,512
Employee benefits 49,965 42,975 6,990 39,756
Purchased services 132,578 120,865 11,713 131,758
Supplies and maintenance 29,700 30,269 569) 32,076
General and administrative 9,670 8,884 786 10,130
Total fire 335,157 316,827 18,330 336,232
Volunteer training:
Employee benefits 2,300 5,461 3,161)
Purchased services 4,100 3,852 248 4,768
Supplies and maintenance 5,724 4,058 1,666 6,836
General and administrative 18,400 17,148 1,252 22,911
Total volunteer training 30,524 30,519 5 34,515
Emergency preparedness:
Purchased services 10 10)
Supplies and maintenance 2,100 435 1,665 21
General and administrative 4,050 2,395 1,655 3,117
Total emergency preparedness 6,150 2,840 3,310 3,138
44
11
1 Exhibit F -3, continued
45
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
t1999 1998
Variance
Favorable
Bu Actual Unfavorable) Actual
Expenditures, continued:
Public safety, continued:
Engineer and utility manager:
Salaries 62,887 71,721 8,834) 67,066
Employee benefits 21,995 27,519 5,524) 17,443
Purchased services 12,500 10,280 2,220 10,896
Supplies and maintenance 11900 1,853 47 1,760
General and administrative 4,350 3,871 479 3,499
Total engineer and utility manager 103,632 115,244 11,612) 100,664
Building inspector:
Salaries 25,302 26,005 703) 18,820
Employee benefits 4,702 2,414 2,288 1,714
Purchased services 6,303 5,779 524 5,550
Supplies and maintenance 900 1,573 673) 1,406
General and administrative 7,850 11,095 3,245 5,314
Total building inspector 45,057 46,866 1,809) 32,804
Total public safety 2,048,692 1,914,943 133,749 1,876,870
Public works:
Roads and streets:
Salaries 197,284 197,550 266) 152,937
Employee benefits 71,750 66,803 4,947 52,773
Purchased services
Supplies and maintenance
189,078
93,550
171,778
88,790
17,300
4,760
167,279
86,864
General and administrative 2,350 4,386 2,036) 3,952
Capital outlay
Total roads and streets
5,000
559,012 529,307
5,000
29,705
4,900
468,705
City shop:
Salaries 118,566 80,726 37,840 103,275
Employee benefits 65,894 61,226 4,668 56,313
Purchased services 40,364 38,184 2,180 39,883
Supplies and maintenance 20,875 18,998 1,877 19,689
General and administrative 2,600 546 2,054 1,409
Capital outlay 3,180
Total city shop 248,299 199,680 48,619 223,749
45
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
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
Gciieral 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
Exhibit F -3 continued '
1999 1998
Variance
Favorable
Budget Actual (Unfavorable) Actual
S 42,823 40,412 2,411 39,953
18,692 20,602 1,910) 15,768
56,300 56,129 171 59,531
20,400 16,974 3,426 23,145
400 432 32) 397
138,615 134,549 4,066 138,794
945,926 863,536 82,390 831,248
332,584 302,873 29,711 302,814
98,972 86,389 12,583 84,849
113,594
55,050
103,007
55,926
10,587
876)
95,286
81,532
46,968 45,987 981 39,620
3,000 3,334 334) 4,900
650,168 597,516 52,652 609,001
113,436 109,186 4,250 112,077 1
50,834 47,891 2,943 46,086
20,802 20,812 10) 21,501
41,295 34,919 6,376 38,008
9,375 14,524 5,149) 11,445
550 550 4,916
235,742 227,882 7,860 234,033
106,475 106,475 115,275
108,899 108,899 95,593
215,374 215,374 210,868
5,793,095 5,361,621 431,474 5,722,707
365,333 1,313,645 948,312 755,845
46
Exhibit F -3, continued
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
1999 1998
Variance
Favorable
Budget Actual Unfavorable) Actual
Other financing sources (uses):
Operating transfers from other funds $ 14,888 214,268 199,380 177,450
Operating transfers to other funds 2 ( 26,325) 8( 05,282) 578,957) 420,916
Net other financing sources (uses) 211,437 5( 91,014} 379,577 243,466
Excess of revenues and other financing sources
over expenditures and other uses $ 153,896 722,631 568,735 512,379
Fund balance at beginning of year 2,932,042 3,715,373
Residual equity transfers to other funds 77,200 ) 1,295,710
Fund balance at end of year S 3,577,473 2,932,042
e
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w
C
1
I
48 1
SPECLAL REVENUE FUNDS
The Special Revenue Funds are used to account for revenues from specific sources,
which are restricted to finance particular functions and activities. Funding sources
include external grants and operating transfers from the General Fund.
1
1
1
1
1
1
1
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for expenditures associated with dedicated or restricted
revenue sources.
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.
1 49
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.
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.
Rural Community Fire Protection — To account for the cost of purchasing equipment
chainsaws, portable radios, floating pumps, computer) which will better equip the
Seward Fire Department to assist in protecting the life and property of the citizens of
Seward.
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.
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.
1 49
1
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 B - 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 - Ta account for a pass - through grant to
the Seward Life Action Council, for the purpose of improving handicapped access
to their health care facilities.
1
1
1
50
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1 51
Exhibit G -1 1
CITY OF SEWARD
Special Revenue Funds
Combining Balance Sheet
June 30, 1999
With Comparative Totals for 1998
1
Seward
Life
Action
Other Council
Parks and Public Public General Pass - Totals
Msets Recreation Library Safety Government Through 1999 1998
Cash and investments 30,036 642 75 26,947 57,700 66,064
Grants receivable:
Federal 1,088 22,772 42,990 66,850 781
State 5,596 9,523 15,119 5,926
31,124 642 28,443 36,470 42,990 139,669 72,771
Liabilities and Fund Balances
Liabilities:
Accounts payable 147 642 735 42,990 44,514 11267
Deferred revenue 5,079 26,947 32,026 37,028
Due to other funds 581 26,383 6,845 33,809 2,324
Total liabilities 5,807 642 27,118 33,792 42,990 110,349 40,619
Fund balances - unreserved
and undesignated 25,317 1,325 2,678 29,320 32,152
31,124 642 28,443 36,470 42,990 139,669 72,771
t
52
Seward
Life
Action
Other Council
Parks and Public Public General Pass -
Exhibit G -2
Recreation Library Safes Government Through 1999
Totals
1998
Revenues:
288) - 942) 1,602) -
CITY OF SEWARD
12,804)
Special Revenue Funds
Cornbining Statement of Revenues, Expenditures
Fund balances at beginning of year
and Changes in Fund Balances
Federal grants
Year Ended June 30, 1999
With Comparative Totals for 1998
Seward
Life
Action
Other Council
Parks and Public Public General Pass -
Exhibit G -2
Recreation Library Safes Government Through 1999
Totals
1998
Revenues:
288) - 942) 1,602) - 2,832) 12,804)
Fund balances at beginning of year 25,605 -
Federal grants S 1,208 22,772 43,729 67,709 26,019
S 25,317 - 1,325
State grants 7,000 17,253 10,247 34,500 61,910
Miscellaneous 3,879 3,053 6,932 4,073
Total revenues 5,087 7,000 4_ 0025 13,300 43,729 109,141 92,002
Expenditures;
Salaries and employee benefits 2,548 4,893 658 8,099 10,902
Contracted services
Supplies
178)
1,117
347
6,653
649
30,604
23,312
486
24,130
38,860
43,672
9,896
Equipment 20,174 20,174
Pa ,.s- through payments 2,140 43,729 45,869 34,414
Other services and charges 98 3,979 2,446 6,523 17,375
Total expenditures 5,725 7,000 60,299 26,902 43,729 143,655 116,259
Excess of revenues over (under) - -
expenditures (638) (20,274) (13,602)
Other financing sources (uses):
34,514) (24,257)
Operating transfers from other funds 350 - 19,332 12,000 31,682 13,964
Operating transfers to other funds - - - - - - (2,511)
Net other financing sources (uses) 350 - 19,332 12,000 - 31,682 11,453
Excess of revenues and other financing
sources over (under) expenditures
and other uses 288) - 942) 1,602) - 2,832) 12,804)
Fund balances at beginning of year 25,605 - 2,267 4,280 - 32,152 44,956
Fund balances at end of year S 25,317 - 1,325 2,678 - 29,320 32,152
Exhibit G -3
CITY OF SEWARD
Parks and Recreation Special Revenue Funds
Combining Balance Sheet
June 30, 1999
Two
Bicycle Litter Lakes
Assets Safety Control Park Totals
Cash and investments
Grants receivable - federal
Liabilities and Fund Balances
Liabilities:
Accounts payable
Deferred revenue
Due to other funds
Total liabilities
Fund balances - unreserved
and undesignated
54
5,154 24,882 30,036
750 - 338 1,088
750 5,154 25,220 31,124
75 72 147
5,079 - 5,079
581 - - 581
581 5,154 72 5,807
169 - 25,148 25,317
750 5,154 25,220 31,124
xp y...........
i
i
t
CITY OF SEWARD
Parks and Recreation Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 1999
Revenues:
Federal grants
Miscellaneous
Total revenues
Expenditures:
Salaries and employee benefits
Contracted services
Supplies
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
Fund balances at beginning of year
Fund balances at end of year
55
Exhibit G -4
169 - (457) (288)
25,605 25,605
169 - 25,148 25,317
Two
Bicycle Litter Lakes
Safety Control Park Totals
750 458 1,208
3,879 3,879
750 3,879 458 5,087
1,664 884 2,548
72 250) 178)
859 75 183 1,117
2,140 2,140
98 98
931 3,879 915 5,725
181) 457) 638)
350 350
169 - (457) (288)
25,605 25,605
169 - 25,148 25,317
Assets
Cash and investments
Grants receivable:
Federal
State
Exhibit G -5
CITY OF SEWARD
Public Safety Special Revenue Funds
Combining Balance Sheet
June 30, 1999
Emergency High Risk
Police Shelter Flood Traffic
Fund Supplies Mitigation Enforcement Totals
75 _ _ _ 75
2,126 20,646 22,772
5,596 - - 5,596
75 5,596 2,126 20,646 28,443
Liabilities and Fund Balances Deficit
Liabilities:
Accounts payable 735 - 735
Due to other funds 5,861 2,126 18,396 26,383
Total liabilities 6,596 2,126 18,396 27,118
Fund balances (deficit) - unreserved and
undesignated 75 (1,000 ) - 2,250 1,325
75 5,596 2,126 20,646 28,443
56
i
Exhibit G -6
CITY OF SEWARD
Public Safety Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances (Deficit)
Year Ended June 30, 1999
Rural
Emergency Community High Risk
Police Shelter Flood
Fund Supplies Mitigation
Fire
Protection
Traffic
Enforcement
DARE
Pry Totals
Revenues:
Federal 2,125 20,646 22,772grants
State grants 12,253 - 5,000 17,253
Total revenues 12,253 _ 2,126 5,000 20,646 40.025
Expenditures:
Salaries and employee benefits 673 2,052 607 1,561 4,893
Contracted services 386 18 245 649
Supplies 13,102 - 7,172 9,556 774 30,604
Equipment 2,810 17,364 20,174
Other services and charges 576 708 74 2,621 3,979
Total expenditures 576 14,869 2,126 10,000 27,527 5,201 60,299
Excess of revenues over (under)
expenditures 576) (2,616) - 5,000) 6,881) 5,201) 20,274)
Other financing sources -
operating transfers from other funds 5,000 9,131 5,201 19,332
Excess of revenues and other
financing sources over (under)
expenditures 576) (2,616) - 2,250 942)
Fund balances at beginning of year 651 1,616 - 2,267
Fund balances (deficit) at end of year S 75 (1,000 - 2,250 1,325
57
CITY OF SEWARD
Other General Government Special Revenue Funds
Combining Balance Sheet
June 30, 1999
Assets
Cash and investments
Grants receivable - State
Liabilities and Fund Balances
Liabilities:
Deferred revenue
Due to other funds
Total liabilities
Fund balances - unreserved and
undesignated
Exhibit G -7
Seward Historic
Compre- Records Seward
pensive Preservation Community
Plan Phase II Cemetery Totals
26,947 26,947
6,367 3,156 9,523
26,947 6,367 3,156 36,470
26,947 - - 26,947
5,751 1,094 6,845
26,947 5,751 1,094 33,792
616 2,062 2,678
26,947 6,367 3,156 36,470
58
i
Exhibit G -8
Totals
Seward Historic
Compre- Records Seward
CITY OF SEWARD
hensive
Other General Government Special Revenue Funds
Combining Statement of Revenues, Expenditures
Phase U Cemetery
and Changes in Fund Balances
Year Ended June 30, 1999
Miscellaneous 3,053
Exhibit G -8
Totals
Seward Historic
Compre- Records Seward
hensive Preservation Community
Plan Phase U Cemetery
Exhibit G -8
Totals
Revenues:
State grants 6,367 3,880 10,247
Miscellaneous 3,053 3,053
Total revenues 3,053 6,367 3,880 13,300
Expenditures:
Salaries and employee benefits 658 658
Contracted services 13,198 7,254 2,860 23,312
Supplies 486 486
Other services and charges 1,369 725 352 2,446
Total expenditures 15,053 7,979 3,870 26,902
Excess of revenues over (under)
expenditures (12,000) (1,612)
Other financing sources - -
operating transfers from other funds 12,000
Excess of revenues and other
financing sources over (under)
expenditures - (1,612)
10 (13,602)
12,000
10 (1,602)
Fund balances at beginning of year - 2,228 2,052 4,280
Fund balances at end of year $ - 616 2,062 2,678
59
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r
60 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, and the retirement of the
liability to the State of Alaska Public Employees Retirement System
resulting from the dissolution of the Seward General Hospital Enterprise
Fund.
CITY OF SEWARD
Debt Service Fund
Balance Sheet
June 30, 1999
with Comparative Amounts for 1998
1
Cash and investments
Assets
1
Fund Balance
Fund balance - reserved for debt service
1
1
r
61
Exhibit H -1
1999 1998
cc. 1'
CITY OF SEWARD
Debt Service Fund
Statement of Revenues, Expenditures
and Changes in Fund Balance
Year Ended June 30, 1999
with Comparative Amounts for 1998
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
1999 1998
S 14,070 2,759
Excess of revenues and other financing sources over expenditures
Fund balance at beginning of year
Fund balance at end of year
62
401,893 67,638
175,000 -
576,893 67,638
562,823) (64,879)
656,586 184,927
93,763 120,048
242,332 122,284
336,095 242,332
t
CAPITAL PROJECT FUNDS
The Capital Project Funds are established to account for the resources
expended to acquire assets of a relatively permanent nature. These funds
are established for the purpose of segregating the accounting for bond
proceeds, grants and contributions for the acquisition of capital assets.
Capital Project Funds provide a formal mechanism which enables
administrators to ensure that revenues dedicated to a certain purpose are
used only for that purpose, and further enables them to report to
creditors and other grantors of Capital Project Fund revenue, that their
requirements regarding the use of the revenue were fully satisfied.
t
ICAPITAL PROJECT FUNDS
Capital Project Funds are established to account for the resources expended to acquire assets of a
relatively permanent nature.
Gateway Subdivision - To account for the cost of acquiring lots and developing a
park. Monies are provided by a State grant and the City.
Bike Path Continuation - To account for the construction of a high school bike path
extension. Monies were provided through a State matching grant.
Mini - Service Campground -- To account for the construction of a full- service
campground section that includes water and electric hook -ups and picnic tables for
twenty recreation vehicle sites. Monies were provided by the General Fund
campground revenues.
Ballfield w- 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.
1995 Flood Disaster - To account for grants from the Federal Emergency
Management Agency for the repair and restoration of damaged roads, bridge
approaches, and culverts; the installation of culverts and levees; and the dredging of
a portion of the Small Boat Harbor, as a result of the 1995 flood disaster.
Sidewalks /Curbs - To account for the cost of repairing and installing new sections
of sidewalks, curbs and gutters, to improve handicapped accessibility of sidewalks.
911 Equipment Replacement - To account for the costs of upgrading the City's 911
emergency telephone equipment, including the purchase of recording equipment.
I
1 63
CAPITAL PROJECT FUNDS, continued ,
Seward Association for Advancement of Marine Science -- To account for the '
development of the Alaska Sealife Center as a recreation and marine mammal
rehabilitation center and as a center for education and research related to the natural
resources injured by the Exxon Valdez oil spill and to the prevention and '
amelioration of marine spills. Monies are provided primarily by grants from the
federal government, State of Alaska and the Exxon Valdez Oil Spill Trustee
Council. I
Capital Acquisition -- To account for purchase of equipment not financed by the
Motor Pool Fund and capital improvements and projects of at least $20,000. '
Funding is provided as available from the General Fund.
Hospital Construction — To account for the cost of constructing the new hospital. '
Funding is provided primarily by the 1996 hospital bond issue for $7.5 million.
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. ,
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 Parking Lot -- To account for the cost of paving the library parking lot and '
adding handicapped accessibility to the building.
64 1
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r
1 65
Exhibit I -1 '
CITY OF SEWARD
Capital Project Funds
Combining Balance Sheet
June 30, 1999
with Comparative Totals for 1998
Other
Parks and Public General Totals
Assets Recreation Safety Government Library 1999 1998
Cash and investments 196,203 26,670 740,802 4,522 968,197 1,726,168
Grants receivable - State 139 139 3,682
Other receivables 433 433 1,123
196,203 26,809 741,235 4,522 968,769 1,730,973
Liabilities and Fund Balances
Liabilities:
Accounts payable 2,996 11,658 14,654 387,525
Deferred revenue 27,248 1,349 28,597 21,721
Due to other funds 433 433 3,035
Total liabilities 30,244 12,091 1,349 43,684 412,281
Fund balances - unreserved - designated
for capital improvements 165,959 26,809 729,144 3,173 925,085 1,318,692
196,203 26,809 741,235 4,522 968,769 1,730,973
1
66
li
CITY OF SEWARD
Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 1999
with Comparative Totals for 1998
Exhibit 1 -2
138,310 2,022 331,308 222,025
1,917 276,440 278,357 24,453)
159,850 29,209 1(138,130) 2,022 52,951 197,572
Other
Parks and Public General Totals
Recreation Safe Government Libra 1999 1998
t
Revenues:
Federal grants 4,230 4,230 51,785
State grants 28,857 22,249 162,612 3,144 216,862 6,593,319
Land sales
Investment income
254,085
43,646
254,085
43,646
159,585
199,546
Miscellaneous 1,917 2,810 4,727 77,652
Total revenues 28,857 28,396 463,153 3,144 523,550 7,081,887
Expenditures:
Salaries and employee benefits 10,437 23 3,428 280 14,168 363
Contracted services 36,766 4,336 118,855 159,957 477,190
Supplies 42,096 79 6,216 2,570 50,961 31,253
Buildings 20,495
Equipment 24,787 118,229 143,016 18,162
Interest
Pass - through payments 571,188 571,188
338,192
10,977,716
Other services and charges 11,482 1,571 16,731 1,034 30,818 155,817
Total expenditures 100,781 30,796 834,647 3,884 970,108 12,019,188
Excess of revenues
over (under) expenditures
Other financing sources (uses):
t Operating transfers from other funds
Operating transfers to other funds
Net other financing sources (uses)
Excess of revenues and other
financing sources over (under)
expenditures and other uses
Fund balances at beginning of year
Fund balances at end of year
71,924) (2,400) (371,494) (740) (446,558) (4,937,301)
159,850 31,126 138,310 2,022 331,308 222,025
1,917 276,440 278,357 24,453)
159,850 29,209 1(138,130) 2,022 52,951 197,572
87,926 26,809 (509,624) 1,282 (393,607) (4,739,729)
78,033 - 1,238,768 1,891 1,318,692 6,058,421
165,959 26,809 729,144 3,173 925,085 1,318,692
67
Exhibit 1-
CITY OF SEWARD
Parks and Recreation Capital Project Funds
Combining Balance Sheet
June 30, 1999
Campground
ADA and City
Gateway Bike Path Waterfront Play- Hoben
Agsets Subdivision Conti cation BalfficId lm ro_p vcments ogr unds Paris Totals
Cash and investments 11,605 20,745 11,587 58,767 42,295 51,204 196,203
Liabilities and F nd Balances Deficit)'
Liabilities:
Accounts payable 53 - - 2,728 215 2,996
Deferred revenue 11,596 _ 9,758 - 5,894 27.248
Total liabilities 11,649 9,758 - 8,622 215 30,244
Fund balances (deficit) - unreserved -
designated for capital improvements 44 ) 10,987 11,587 50,145 41295 50,989 165,959
111,605 20,745 11,587 58,767 42,295 51,204 196,203
1
1
1
1
68
1
Exhibit -4
CITY OF SEWARD
Parks and Recreation Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances (Deficit)
Year Ended June 30, 1999
Campground
ADA and City
Gateway Bike Path Mini - Service Waterfront Play- Hoben
Subdivision Continuation Cam round Ballfield Improvement zrounds Park Totals
Revenues - State grants S 244 38 - - 561 28.014 28,857
Expenditures:
Salaries and employee benefits 209 46 - 9,902 280 10,437
Contracted services 6,800 29,966 36,766
Supplies 106 - 41,990 42,096
Equipment
Other services and charges 79 5 - - 8,374 3,024 11,482
Total expenditures 288 51 106 6,800 60,266 33,270 100,781
Excess ofrevenues
over (under) expenditures 44) (13) (106) (6,800) 59,705) 5.256) 71,924)
Other financing sources - ,
operating transfers from other funds 109,850 50,000 159,850
Excess of revenues and other
financing sources over (under)
expenditures 44) (13) (106) (6,800) 50,145 44,744 87,926
Fund balances at beginning of year 11,000 106 18,387 42,295 6.245 78,033
Fund balances (deficit) at end of year S (44) 10,987 11,587 50,145 42,295 50,989 165,059
1
1
69
1
Exhibit 1 -5
CITY OF SEWARD
Public Safety Capital Project Funds
Combining Balance Sheet
June 30, 1999
911
Sidewalks/ Equipment
Assets Curbs Replacement Totals
Cash and investments
Grants receivable - State
Fund Balances
Fund balances - unreserved - designated
for capital improvements
70
25,358 1,312 26,670
139 139
25,358 1,451 26,809
25,358 1,451 26,809
CITY OF SEWARD
Public Safety Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 1999
Revenues:
Federal grants
State grants
Miscellaneous
Total revenues
Expenditures:
Salaries and employee benefits
Contracted services
Supplies
Equipment
Other services and charges
Total expenditures
Excess of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers from other funds
Operating transfers to other funds
Net other financing sources (uses)
Excess of revenues and other financing
sources over expenditures and other uses
Fund balances at beginning of year
Fund balances at end of year
i
71
Exhibit 1 -6
1995 911
Flood Sidewalks/ Equipment
Disaster Curbs Replacement Totals
4,230 4,230
22,249 22,249
1,917 1,917
6,147 22,249 28,396
23 23
4,230 106 4,336
79 79
24,787 24,787
13 1,558 1,571
4,230 142 26,424 30,796
1,917 142) 4,175) 2,400)
25,500 5,626 31,126
1_( ,917) 1•g
1,917} 25,500 5,626 29,209
25,358 1,451 26,809
25,358 1,451 26,809
CITY OF SEWARD
Other General Government Capital Project Funds
Combining Balance Sheet
June 30, 1999
Assets
Cash and investments
Other receivables
Liabilities and Fund Balances
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund balances - unreserved - designated
for capital improvements
Exhibit 1-7
Seward
11,558 11,658
Association
433
for
11,558 12,091
Advancement
408,387 13,005 729,144
of Marine Capital Hospital
419,945
Science Acquisition Construction Fuel Tank Totals
307,852 419,945 13,005 740,802
433 433
433 307,852 419,945 13,005 741,235
100 11,558 11,658
433 - 433
433 100 11,558 12,091
307,752 408,387 13,005 729,144
433 307,852 419,945 13,005 741,235
72
i
i
CITY OF SEWARD
Other General Government Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 1999
Revenues:
State grants
Land sales
Investment income
Miscellaneous
Total revenues
Expenditures:
Salaries and employee benefits
Contracted services
Equipment
Supplies
Pass - through payments
Other services and charges
Total expenditures
Excess of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers from other funds
Operating transfers to other funds
Net other financing sources (uses)
Excess of revenues and other
financing sources over (under)
expenditures and other uses
Fund balances at beginning of year
Fund balances at end of year
Exhibit I -8
Seward
Association
for
Advancement
of Marine Capital Hospital
Science Acquisition Construction Fuel Tank Totals
162,612 - - 162,612
254,085 - - 254,085
16,427 27,219 - 43,646
2,810 - - - 2,810
165,422 270,512 27,219 - 463,153
3,428 3,428
1,350 111,392 6,113 118.855
113,959 4,270 118,229
32 6,184 6,216
162,612 - 408,576 571,188
2,810 729 11,192 2,000 16,731
165,422 116,038 531,192 21,995 834,647
154,474 503,973) 21,995) 371,494)
75,000 28,310 35,000 138,310
27( 6,440) 276,440)
201,440 28,310 35,000 138,130
46,966) (475,663) 13,005 (509,624)
354,718 884,050 - 1,238,768
307,752 408,387 13,005 729,144
73
CITY OF SEWARD
Public Library Capital Project Funds
Combining Balance Sheet
June 30, 1999
Assets
Cash and investments
Liabilities and Fund Balances
Liabilities - deferred revenue
Fund balances - unreserved - designated for
capital improvements
74
Exhibit I -9
Library
Library Parking
Automation Lot Totals
1,477 3,045 4,522
147 1,202 1,349
1,330 1,843 3,173
1,477 3,0,45 4,522.
CITY OF SEWARD
Public Library Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 1999
Revenues - State grants
Expenditures:
Salaries and employee benefits
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
Fund balances at beginning of year
Fund balances at end of year
75
Exhibit I- 10
Library
Library Parking
Automation Lot Totals
2,190 954 3,1444
280 280
2,570 - 2,570
181 853 1,034
2,751 1,133 3,884
561) (179) (740)
2,022 2,022
561) 1,843 1,282
1,891 - 1,891
1,330 1,843 3,173
THIS PAGE LEFT BLANK INTENTIONALLY
76
ENTERPRISE FUNDS
i
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,
1
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.
rElectric - To account for the provision of electrical service to the residents of the
City and other areas within the electric service area.
Water and Sewer -- To account for the provision of water and sewer services to the
residents of the City.
Harbor - To account for the provision of harbor and marine services to the public,
on Resurrection Bay.
Parking Revenue - To account for the provision of public parking services.
1
1
77
Exhibit J -1
CITY OF SEWAF.D
Enterprise Funds
Combining Balance Sheet
June 30, 1999
with Comparative Totals for 1998
Assets Electric
Water
jind Sewe Haft Parking
Totals
1222 1998
Current assets:
Cash and investments 4,611,199 1,523,774 3,126,188 43,888 9,305,049 4,364,082
Receivables:
Accounts 710,744 87,451 381,408 1,698 1,181,301 1,145,997
Grants 8,248 8,248 15,160
Other 6,042 11,476 17.518 16,186
Less allowance for doubtful receivables 32,220) 7,287 42,9 82,475) 121,328)
Net accounts receivable 684,566 91,640 346,688 1.698 1,124,592 1,056,015
Prepaid expenses 11,537
Inventory 526,925 36,242 563,167 562,713
Due from other funds 46,713 46,713
Advances to other funds - current portion 19,712
Total current assets 5,822,690 1,698,369 3,472,876 45,586 11,039,521 6.014,059
Restricted assets - cash and investments restricted
for bond retirement 307,205 307,205 307,205
Assessments receivable 3,952 3,952 5,908
Property, plant and equipment:
Property, plant and equipment in service 39,101,480 14,724,532 61,542,327 115,368,339 113,394,301
Less accumulated depreciation 15,727,359) 6,326,323) 17,312,788} 39,366.470) 36,465,938)
Net property, plant and equipment in service 23,374,121 8,398,209 44,229,539 76,001,869 76,928,363
Construction in progress 269,565 155,973 392,820 818,358 851,235
Total property, plant and equipment 23,643,686 8,554,182 44,622,359 76,820,227 77,779,598
Loan receivable - Alaska Railroad Corporation 244,310
Deferred charges - unamortized debt issuance costs 34,809 20,414 55,223 63,293
29,812,342 10,252,551 48,115,649 45,586 88,226,128 84,414,373
78
1
Liabilities and Fund E_ ui
1 Liabilities:
Current liabilities:
Accounts payable
Current portion:
Bonds payable
Notes payable
Capital lease obligations
Retirement incentive program payable
Customer deposits
Accrued annual leave
Accrued interest
Other accrued liabilities
Deferred revenue
Due to other funds
Advances from other funds - current portion
Total current liabilities
CITY OF SEWARD
Enterprise Funds
Combining Balance Sheet, continued
1
Deferred revenue - Alaska Railroad Corporation
loan receivable
Long -term debt, excluding current portion:
Bonds payable
Less unamortized deferred amount on refunding
Notes payable
Capital lease obligations
Retirement incentive program payable
Total long -term debt
Total liabilities
Fund equity:
Contributed capital
Less accumulated amortization
Net contributed capital
1 Retained earnings - unreserved
Total fund equity
Water
Electric and Sewer
Exhibit J -1, continued
Totals
Harbor Parkin 1999 1998
205,214 18,906 35,387 265 259,772 446,222
680,000 131,760 811,760 748,525
39,012 39,012 37,454
60,000 60,000 60,000
12,317 12,317 12,317
191,462 191,462 190,767
52,670 12,497 46,352 111,519 105,553
63,216 22,575 16,221 102,012 100,573
12,195 5,190 14,488 4,623 36,496 30,944
214,447 3,304,324 3,518,771 62,278
46,713 46,713 117,185
7,021 ,270
19,712
1,419,204 98,180 3,667,562 4,888 5.189.834 1,931,530
244,310
5,695,000 1,317,600 7,012,600 7,824,360
162,689) 135,430) 298,119) 340,281)
754,478 754,478 793,490
475,000 475,000 535,000
12,317 12,317 24,634
5,532,311 754,478 1,669,487 7,956,276 8,837203
6,951,515 852,658 5,337,049 4,888 13,146,110 11,013,043
22,764,548 11,577,069 56,147,456 90,489,073 89,148,332
6,924,991) 5,3 94,080) 14,946,875 27,265,946) 25,0( 26,164)
15,839,557 6,182,989 41,200,581 63,223,127 64,122,168
7,021 ,270 3,216,904 1,578,019 40,698 11,856,891 9,279,162
22,860,827 9,399,893 42,778,600 40,698 75,080,018 73,401,330
29,812,342 10,252,551 48,115,649 45,586 88,226,128 84,414,373
79
THIS PAGE LEFT BLANK INTENTIONALLY ,
80 1
i
Exhibit J -2
CITY OF SEWARD
Enterprise Funds
Combining Statement of Revenues,
Expenses and Changes in Retained Earnings
Year Ended June 30, 1999
with Comparative Totals for 1998
81
Water Totals
E wr',c an wee Har or Parking 1999 1498
Operating revenues $ 6,538,109 1,355,171 1,893,672 90,662 9,877,614 9,596,352
Operating expenses 4,167,578 811,554 1,629,586 87,210 6,695,928 7,016,530
Earnings from operations before
depreciation 2,370,531 543,617 264,086 3,452 3,181,686 2,579,822
Depreciation 1,195,174 375,474 1,349,070 2,919,718 2,800,087
Earnings (loss) from operations 1,175,357 168,143 1,084,984) 3,452 261,968 220,265)
Nonoperating revenues (expenses):
Gain (loss) on disposal of property and equipment 23,257) 87,727 64,470 638,828
Investment income 182,204 68,449 73,331 1,657 325,641 231,909
Land lease 175,000 175,000
Interest expense 396,113) 34,841) 170,639) 601,593) 685,083)
Other revenues 913 197,398 198,311 948
Other expenses 4,83_)
Net nonoperating revenues (expenses) 23( 6,253] 33,608 362,817 1,657 161.829 181,765
Earnings (loss) before operating
transfers 939,104 201,751 722,167) 5,109 423,797 38,500)
Operating transfers to other funds 12,500) 1( 37,705) 1^ 50,205) 273,586)
Net earnings (loss) 926,604 201,751 859,872) 5,109 273,592 312,086)
Increase in retained earnings for capitalized
assets constructed in other funds 123,100 123,100
Amortizationofcontributedcapital 779,519 292,718 1,193,163 2,265,400 2,181,914
Increase in retained earnings 1,706,123 494,469 456,391 5,109 2,662,092 1,869,828
Retained earnings at beginning of year 5,346,567 2,742,435 1,154,571 35,589 9,279,162 7,602,572
Prior period adjustment 193,238)
Residual equity transfers to other funds 31,42) 2_ 0,000) 32,943) 84,363)
Retained earnings at end of year 5 7,021,270 3,216,904 1,578,019 40,698 11,856,891 9,279,162
81
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 (expenses)
Increase (decrease) in allowance for
doubtful receivables
Increase) decrease in assets:
Receivables
Assessments receivable
Prepaid expenses
Inventory
Increase (decrease) in liabilities:
Accounts payable
Customer deposits
Accrued annual leave
Other accrued liabilities
Due to other funds
Deferred revenue
Retirement incentive program payable
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Operating transfers to other funds
Residual equity transfers to other funds
Decrease in advances to other funds
Decrease in advances from other funds
Interest on central treasury borrowings
Receipts on loan to Alaska Railroad Corporation
Net cash flows from noncapital
financing activities
Exhibit J -3
CITY OF SEWARD
Enterprise Funds
Combining Statement of Cash Flows
Year Ended June 30, 1999
with Comparative Totals for 1998
Totals
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 (expenses)
Increase (decrease) in allowance for
doubtful receivables
Increase) decrease in assets:
Receivables
Assessments receivable
Prepaid expenses
Inventory
Increase (decrease) in liabilities:
Accounts payable
Customer deposits
Accrued annual leave
Other accrued liabilities
Due to other funds
Deferred revenue
Retirement incentive program payable
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Operating transfers to other funds
Residual equity transfers to other funds
Decrease in advances to other funds
Decrease in advances from other funds
Interest on central treasury borrowings
Receipts on loan to Alaska Railroad Corporation
Net cash flows from noncapital
financing activities
Water Totals
Electric and Sewer Harbor Parking 1999 1998
1,175,357 168,143 1,084,984) 3,452 261,968 220,265)
1,195,7474 375,474 1,349,070 2,919,718 2,800,087
350 372,398 372,748 4,762)
14,700) 7,121) 17,032) 38,853) 27,725
30,316) 110,239 120,340) 10,693 29,724) 100,828)
1,956 1,956 3,374
11,537 11,537 11,537)
3,151) 2,697 454) 14,716
35,239) 106,999) 10,082) 34,130) 186,450) 126,269
695 695 60,935
2,699 1,426) 4,693 5,966 774)
93 230) 1,066 4,623 5,552 10,437)
70,472) 70,472) 1,742,371)
10,433
12,317) 12,317) 36,951
2,304,455 540,777 412,000 15,362) 3,241,870 989,516
12,500) 137,705) 150,205) 273,586)
31,420) 20,000) 32,943) 84,363)
19,712 19,712 18,521
19,712) 19,712) 18,521)
69,059)
244,310 244,310
24,208) 290,000) 53,950 9,742 342,645)
82
CITY OF SEWARD
Enterprise Funds
Combining Statement of Cash Flows, 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
Acquisition of property, plant and equipment
Proceeds from sale of property and equipment
Contributed capital
Increase 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 investment
Cash and investments at beginning of year
Cash and investments at end of year
Reconciliation of cash and investments to balance sheet:
Cash and investments:
Current assets
Restricted assets
I Noncash capital and related financing activities:
Increase in property, plant and equipment and
Water
Electric and Sewer Harbor
625,000)
357,876)
340,571)
73,596
214,447
563
46,713 -
37,454) (183,525)
35,912) (156,133)
38,399) (693,722)
87,727
123,100) 534,624
2,997,736
1,034,841 188,152 2,586,707
Exhibit J -3 continued
Totals
Parking 1999 1998
46,713 -
845,979) (780,369)
549,921) (574,473)
1,072,692) (457,987)
87,727 725,000
485,120 l ,522, l 54
3,212,183 -
563 873
1,363,714 435,198
182,204 68,449 73,331 1,657 325,641 231,909
s 1,427,610 401,074 3,125,988 (13,705) 4,940,967 1,313,978
3,490,794 1,122,700 200 57,593 4,671,287 3,357,309
4,918,404 1,523,774 3,126,188 43,888 9,612,254 4,671,287
4,611,199 1,523,774 3,126,188 43,888 9,305,049 4,364,082
307,205 - - - 307,205 307,205
4,918,404 1,523,774 3,126,188 43,888 9,612,254 4,671,287
S - - 1 ,479,397 - 1,479,397 -
84,672) (483,811) - (568,483) -
5 - - 5( 98,157) - (598,157) -
93
contributed capital resulting from transfer
of harbor assets from State
Corrections and reclassifications to:
Property, plant and equipment
Contributed capital
Water
Electric and Sewer Harbor
625,000)
357,876)
340,571)
73,596
214,447
563
46,713 -
37,454) (183,525)
35,912) (156,133)
38,399) (693,722)
87,727
123,100) 534,624
2,997,736
1,034,841 188,152 2,586,707
Exhibit J -3 continued
Totals
Parking 1999 1998
46,713 -
845,979) (780,369)
549,921) (574,473)
1,072,692) (457,987)
87,727 725,000
485,120 l ,522, l 54
3,212,183 -
563 873
1,363,714 435,198
182,204 68,449 73,331 1,657 325,641 231,909
s 1,427,610 401,074 3,125,988 (13,705) 4,940,967 1,313,978
3,490,794 1,122,700 200 57,593 4,671,287 3,357,309
4,918,404 1,523,774 3,126,188 43,888 9,612,254 4,671,287
4,611,199 1,523,774 3,126,188 43,888 9,305,049 4,364,082
307,205 - - - 307,205 307,205
4,918,404 1,523,774 3,126,188 43,888 9,612,254 4,671,287
S - - 1 ,479,397 - 1,479,397 -
84,672) (483,811) - (568,483) -
5 - - 5( 98,157) - (598,157) -
93
CITY OF SEWARD
Electric Enterprise Fund
Balance Sheet
June 30, 1999
with Comparative Amounts for 1998
Assets
Current assets:
Cash and investments
Receivables:
Accounts
Other
Less allowance for doubtful receivables
Net receivables
Prepaid expenses
Inventory
Advances to other funds - current portion
Total current assets
Restricted assets - cash and investments restricted
for bond retirement
Deferred 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 - unamortized debt issuance costs
84
1999
Exhibit J -4
1998
4,611,199 3,183,589
710,744 670,284
6,042 16,186
32,220) 46,920)
684,566 639,550
11,537
526,925 523,774
19,712
5,822,690 4,378,162
307,205 307,205
3,952 5,908
39,101,480 38,789,082
15,727,359) (14,533,847)
23,374,121 24,255,235
269,565 266,312
23,643,686 24,521,547
34,809 40,611
29,812,342 29,253,433
CITY OF SEWARD
Electric Enterprise Fund
Balance Sheet, continued
Liabilities and Fund Equity
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
85
Exhibit J4, continued
1999 1998
205,214 240,453
680,000 625,000
191,462 190,767
52,670 49,971
63,216 57,897
12,195 12,102
214,447
1,419,204 1,176,190
5,695,000 6,375,000
162,689 (189,804)
5,532,311 6,185,196
6,951,515 7,361,386
22,764,548 22,716,571
6,924,991) (6,171,091 }
15,839,557 16,545,480
7,021,270 5,346,567
22,860,827 21,892,047
29,812,342 29,253,433
CITY OF SEWARD
Electric Enterprise Fund
Statement of Revenues, Expenses
and Changes in Retained Earnings
Year Ended June 30, 1999
with Comparative Amounts for 1998
Operating revenues:
Residential
Small general service
Large general service
Industrial
Harbor power
Street and yard lights
Miscellaneous
Total operating revenues
Operating expenses:
Power
Distribution
Administration and general
Total operating expenses
Earnings from operations before depreciation
Depreciation
Earnings from operations
Nonoperatmg revenues (expenses):
Loss on disposal of property and equipment
investment income
Interest expense
Penalties and interest on assessments
Other revenues
Net nonoperating revenues (expenses)
Earnings before operating transfers
Operating transfers to other funds
Net earnings
Amortization of contributed capital
Increase in retained earnings
Retained earnings at beginning of year
Residual equity transfers to other funds
Retained earnings at end of year
86
Exhibit J -5
1999 1998
1,871,366 1,807,018
1,389,337 1,365,312
2,628,071 2,353,337
315,934 421,010
119,599 112,507
66,272 65,718
147,530 150,338
6,538,109 6,275,240
2,314,527 2,676,872
237,088 298,692
1,615,963 1,590,874
4,167,578 4,566,438
2,370,531 1,708,802
1,195,174 1,111,607
396,113) 427,428)
1,175,357 597,195
23,257)
182,204 152,884
396,113) 427,428)
563 873
350 75
2) 273,596)
939,104 323,599
12,500) 95,000
926,604 298,599
779,519 780,023
1,706,123 1,078,622
5,346,567 4,267,945
31,420) -
7,021,270 5,346,567
CITY OF SEWARD
Electric Enterprise Fund
Statement of Cash Flows
Year Ended June 30, 1999
with Comparative Amounts for 1998
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
Increase (decrease) in allowance for doubtful receivables
Increase) decrease in assets:
Receivables
Assessments receivable
Prepaid expenses
Inventory
Increase (decrease) in liabilities:
Accounts payable
Customer deposits
Accrued annual leave
Other accrued liabilities
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
Acquisition of property, plant and equipment
Contributed capital
Increase 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
87
Exhibit J -6
1999 1998
S 1,175,357 597,195
1.195.174 1,111,607
350 75
14,700) 3,963
30,316)
Net increase in cash and investments
1 Cash and investments at beginning of year
11,537
Cash and investments at end of year
Reconciliation of cash and investments to balance sheet:
Cash and investments:
Current assets
Restricted assets
87
Exhibit J -6
1999 1998
S 1,175,357 597,195
1.195.174 1,111,607
350 75
14,700) 3,963
30,316) 54,518)
1,956 3,374
11,537 11,537)
3,151) 14,572
35,239) 48,455
695 60,935
2,699 4,396
93 1,024
2,304,455 1,779,541
12,500) (25,000)
31,420)
in ^i ,a cam,
t L`#,LyoJ sy,•171
625,000) (570,000)
357,876) (399,217)
340,571) (209,276)
73,596 99.641
214,447 -
563 873
1,034,841) (1,077,979)
182,204 152,884
1,427,610 847,967
3,490,794 2,642,827
4,918,404 3,490,794
S 4,611,199 3,183,589
In-1 ,Ac
S 4,918,404 3,490,794
Exhibit J -7
CITY OF SEWARD
Electric Enterprise Fund
Schedule of Operating Expenses
Year Ended June 30, 1999
with Comparative Amounts for 1998
88
i
1999 1998
Power:
Salaries and employee benefits S 26,458 14,165
Purchased services 53,240 54,678
Power for resale 2,209,647 2,586,398
Supplies and maintenance 25,182 21,631
Total power 2,314,527 2,676,872
Distribution:
Salaries and employee benefits 264,807 316,947
Salary credits - work orders 125,633) 120,941)
Purchased services 29,975 28,114
Supplies and maintenance 161,795 176,361
Supply credits - work orders 96,212) 112,247)
Administration and general 2,356 10,458
Total distribution 237,088 298,692
Administration and general:
Salaries and employee benefits 335,298 325,466
Purchased services 169,220 171,741
Supplies and maintenance 71,456 100,832
Payment in lieu of taxes 523,049 502,019
Administrative fee 441,704 419,953
Other 75,236 70,863
Total administrative and general 1,615,963 1,590,874
Total operating expenses 4,167,578 4,566,438
88
i
t
CITY OF SEWARD
Electric Enterprise Fund
Combining Schedule of Electric Capital Projects
Year Ended June 30, 1999
Funding sources:
State grant
Electric Funds
Total funding sources
Expenditures:
Contracted services
Other services and charges
Equipment
Total expenditures
89
Exhibit J -8
Major
Repair
and
Replace- Standby
ment Electric
Fund Generator Total
3,253 3,253
44,450 - 44,450
44,450 3,253 47,703
2,957 2,957
296 296
44,450 - 44,450
44,450 3,253 47,703
CITY OF SEWARD .
Water and Sewer Enterprise Fund
Balance Sheet
June 30, 1999
with Comparative Amounts for 1998
Assets
Current assets:
Cash and investments
Receivables:
Accounts
Other
Less allowance for doubtful receivables
Net receivables
Inventory
Due from other funds
Total current assets
Property, plant and equipment:
Property, plant and equipment in service
Less accumulated depreciation
Net property, plant and equipment in service
Construction in progress
Total property, plant and equipment
Liabilities and Fund Equity
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
90
Exhibit J -9 '
1999 1998
1,523,774 1,122,700
87,451 209,166
11,476 -
7,287) 14,408
91,640 194,758
36,242 38,939
46,713 -
1,698, 369 1,3 56,397
14, 724,5 32 14, 702,532
6,3( 26,323) 5,942,094
8,398,209 8,760,438
155,973 224,246
8,554,182 8,984,684
98,180
S 10,252,551 10,341,081
18,906 125,905
39,012 37,454
12,497 13,923
22,575 23,646
5,190 5,420
98,180 206,348
754,478 793,490
852,658 999,838
11,577,069 11,700,169
5,394,080} 5,101,361)
6,182,989 6,598,808
3,216,904 2,742,435
9,399,893 9,341,243
10,252,551 10,341,081
Exhibit J -10
CITY OF SEWARD
Water and Sewer Enterprise Fund
Statement of Revenues, Expenses
and Changes in Retained Earnings
Year Ended June 30, 1999
with Comparative Amounts for 1998
19981999
Operating revenues:
Residential 571,985 572,299
Small general service 130,944 134,903
Large general service 263,815 244,356
Industrial 128,166 122,429
Seward Marine Industrial Center 112,421 136,870
Ship water sales 79,566 143,780
Miscellaneous 68,274 77,889
Total operating revenues 1,355,171 1,432,526
Operating expenses:
Distribution
Supplies and maintenance
366,137
47,160
377,823
71,331
Administration and general 398,257 437,231
Total operating expenses 811,554 886,385
Earnings from operations before depreciation 543,617 546,141
Depreciation 375,474 383,872
Earnings from operations 168,143 162,269
Nonoperating revenues (expenses):
Investment income 68,449 64,609
Interest expense 34,841 3 { 6,338)
Net nonoperating revenues (expenses) 33,608 28,271
Net earnings 201,751 190,540
Amortization of contributed capital 292,718 292,718
Increase in retained earnings 494,469 483,258
Retained eamings at beginning of year 2,742,435 2,452,415
Prior period adjustment 193,238)
Residual equity transfer to other funds 20,000)
Retained earnings at end of year 3,216,904 2,742,435
91
Cash flows from noncapital financing activities - residual equity
Exhibit J -11
CITY OF SEWARD
20,000)
Water and Sewer Enterprise Fund
Statement of Cash Flows
46,713
Year Ended June 30, 1999
37,454) 35,961)
with Comparative Amounts for 1998
35,912) 37,467)
Acquisition of property, plant and equipment
1999 1498
Cash flows from operating activities:
123,100) 123,100
Earnings from operations S 168,143 162,269
Adjustments to reconcile earnings from operations
68,449 64,609
to net cash flows from operating activities:
401,074 408,418
Depreciation 375,474 383,872
Increase (decrease) in allowance for doubtful receivables 7,121) 4,747
Increase) decrease in assets:
Receivables 110,239 67,038)
Inventory 2,697 144
Increase (decrease) in liabilities:
Accounts payable 106,999) 27,154 i
Accrued annual leave 1,426) 1,419
Other accrued liabilities 230) 965
Net cash flows from operating activities 540,777 5I3,532
Cash flows from noncapital financing activities - residual equity
transfers to other funds 20,000)
Cash flows from capital and related financing activities:
Increase in due from other funds 46,713
Principal payments on long -term debt 37,454) 35,961)
Interest payments on long -term debt 35,912) 37,467)
Acquisition of property, plant and equipment 38,399) 219,395)
Contributed capital 123,100) 123,100
Net cash flows from capital and related financing activities 88,152) 169,723
Cash flows from investing activities - investment income received 68,449 64,609
Net increase in cash and investments 401,074 408,418
Cash and investments at beginning of year 1,122,700 714,282
Cash and investments at end of year 1,523,774 1,122,700
Noncash capital and related financing activities -
corrections and reclassifications to property, plant
and equipment
92
i
i
CITY OF SEWARD
Water and Sewer Enterprise Fund
Schedule of Operating Expenses
Year Ended June 30,1999
with Comparative Amounts for 1998
Distribution:
Salaries and employee benefits
Purchased services
Supplies and maintenance
Total distribution
Supplies and maintenance:
Salaries and employee benefits
Purchased services
Supplies and maintenance
Total supplies and maintenance
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
93
Exhibit J -12
1999 1998
133,277 143,378
205,804 200,043
27,056 34,402
366,137 377,823
18,761 21,244
4,479 37,040
23,920 13,047
47,160 71,331
64,147 56,548
25,693 32,519
28,489 44,354
108,402 114,602
163,280 178,561
8,246 10,647
398,257 437,231
811,554 886,385
CITY OF SEWARD
Water and Sewer Enterprise Fund
Combining Schedule of Water and Sewer Capital Projects
Year Ended June 30, 1999
Funding sources -
Water funds
Expenditures:
Salaries and employee benefits
Contracted services
Other services and charges
Supplies
Equipment
Total expenditures
Exhibit J -13
Harbor
Boardwalk
Water /Sewer
Lines Wellhouse Totals
31,895 3,467 35,362
6,994
4,239
18,061
2,601
X31,,
895
6,994
4,239
1,858 19,919
2,601
1,609 1,609
3,467 35,362
Exhibit J -14
CITY OF SEWARD
Harbor Enterprise Fund
Balance Shat
June 30, 1999
with Comparative Amounts for 1998
1 Assts 1999 1998
Current assets:
Cash and investments
Receivables:
S 3,126,188 200
Accounts 381,408 254,156
Grants 8,248 15j60
Less allowance for doubtful receivables 4( 2,968) 60,000)
Net receivables 346.688 209,316
Total current assets 3,472,876 209,516
Property, plant and equipment:
Property, plant and equipment in service 61,542,327 59,902,687
Less accumulated depreciation 17,312.788) 115.989,997)
Net property, plant and equipment in service 44,229.539 43,912,690
Construction in progress 392.820 360,677
Total property, plant and equipment 44 ,622,359 44,273,367
Loan receivable - Alaska Railroad Corporation 244,310
Deferred charges - unamortized debt issuance costs 20,414 22,682
S 48,115,649 44,749,875
Liabilities and Fund Enuity
Liabilities:
Curreni liabilities:
Accounts payable 35,387
Current portion:
45,469
Bonds payable 131,760 123,525
Capital lease obligations 60,000 60,0W
Retirement incentive program payable 12,317 12,317
Accrued annual leave 46,352 41,659
Accrued interest 16,221 19,030
Other accrued liabilities 14,488 13,422
Deferred revenue 3,304,324 62,278
Due to other funds 46,713 117,185
Advances from other funds - current portion 19.7t2
Total current liabilities 3,667.562 514,597
Deferred revenue - Alaska Railroad Corporation loan receivable 244.310
Long -term debt, excluding current portion:
Bonds payable 1,317.600 1,449,360
Less unamortized deferred amount on refunding 135,430) 150,477)
Capital lease obligations 475,000 535,000
Retirement incentive program payable 12,317 24,634
Total long -term debt 1.669,487 1,858,517
Total liabilities 5,337,049 2,617,424
Fund equity:
Contributed capital 56,147,456 54,731,592
Less accumulated amortization 14,946,875) 13,753,712)
Net contributed capital 41,200,581 40,977,880
Retained earnings - unreserved 1,578,019 1.154,571
Total fund equity 42,778,600 42,132,451
S 48,115,649 44, 749,875
95
Exhibit J -15
CITY OF SEWARD
Harbor Enterprise Fund
Statement of Revenues, Expenses
and Changes in Retained Earnings
Year Ended June 30, 1999
with Comparative Amounts for 1998
Operating expenses:
Salaries
1999 1998
Operating revenues:
168,802 185,806
Moorage 965,440 945,686
Wharfage 30,222 117,895
Boat lift fees 227,621 173,301
Power sales 160,584 142,343
Storage 91,953 64,916
Rentals and leases 287,484 282,972
Miscellaneous 130,368 93,888
Total operating revenues 1,893,672 1,821,001
Operating expenses:
Salaries 389,250 391,153
Employee benefits 168,802 185,806
Purchased services 213,916 253,455
Power for resale 120,178 113,086
Supplies and maintenance 163,261 137,855
Administration and general 574,179 438,321
Total operating expenses 1,629,586 1,519,676
Earnings from operations before depreciation 264,086 301,325
Depreciation 1,349,070 1,304,608
Loss from operations 1,0584,984) 1,0_ 03,283)
Nonoperatng revenues (expenses);
Gain on sale of property and equipment 87,727 638,828
Investment income 73,331 13,582
Land lease 175,000
Interest expense 170,639) 221,317)
Other revenues 197,398
Other expenses 4,837)
Net nonoperating revenues (expenses) 362,817 426,256
Loss before operating transfers 722,167) 577,027)
Operating transfers to other funds 1_ 37,705) 248,586)
Net loss 859,872) 825,613)
Increase in retained earnings for capitalized assets constructed in other funds 123,100
Amortization of contributed capital 1,193,163 1,109,173
Increase in retained earnings 456,391 283,560
Retained earnings at beginning of year 1,154,571 871,011
Residual equity transfers to other funds 32,943)
Retained earnings at end of year S 1,578,019 1,154,571
96
I
Exhibit J -16
CITY OF SEWARD
Harbor Enterprise Fund
t Statement of Cash Flows
Year Ended June 30, 1999
with Comparative Amounts for 1998
1999 199
Cash flows from operating activities:
Loss from operations S 1,084,984) 1,003,283)
Adjustments to reconcile loss from operations to net cash
flows from operating activities:
Depreciation 1,349,070 1,304,608
Other nonoperating revenues (expense) 372,398 4,837)
Increase) decrease in allowance far doubtful receivables 17,032) 19,015
Increase) decrease in assets - receivables.
Increase (decrease) in liabilities:
120,340) 19,880
Accounts payable 10,082) 16,265
Accrued annual leave 4,693 6,589)
Other accrued liabiIitics 1,066 12,426)
Due to other funds 70,472) 1,740,333)
Deferred revenue 10,433
Retirement incentive program payable 12,317} 36,951
Net cash flows from operating activities 412,000 1,360,316
Cash flows from noncapital financing activities:
Operating transfers to other funds 137,705) 248,586)
Residual equity transfers to other funds 32,943)
Decrease in advances from other funds 19,712) 18,521)
Interest on central treasury borrowings 69,059)
Receipts on loan to Alaska Railroad Corporation 244,310
Net cash flows from noncapital financing activities 53,950 336,166)
Cash flows from capital and related financing activities:
Principal payments on long -term debt 183,525) 174,408)
Interest payments on long -term debt 156,133) 137,789)
Acquisition of property, plant and equipment 693,722) 29,316)
Proceeds from sale of property 87,727 725,00(}
Contributed capital 534,624 1,299,413
Increase in deferred revenue 2,997,736
Net cash flows from capital and related financing activities 2,586,707 1,682,900
Cash flows from investing activities - investment income received 73,331 13,582
Net increase in cash and investments 3,125,988
1 Cash investmentsand at beginning of year 200 200
Cash and investments at end of year S 3,126,188 200
Noncash capital and related financing activities:
Increase in property, plant and equipment, and contributed capital resulting from
transfer of harbor assets from State 1,479,397
Corrections and reclassifications to:
Property, plant and equipment S 483,811)
Contributed capital S 598,157)
97
Exhibit J -17
CITY OF SEWARD
Harbor Enterprise Fund
Combining Schedule of Harbor Capital Projects
Year Ended June 30, 1999
Harbor
Harbor Harbor Plaza Harbor
Ex2ansion Electric Renovation Boardwalk Totals
Funding sources:
State grants $ - 21,709 17,641 - 39,350
Harbor funds 77,200 - 3,372 66,178 146,750
Total funding sources 77,200 ,^ 21.709 21,013 66,178 186,100
Expenditures:
Salaries and employee benefits - - 1,553
Contracted services 77,200 19,735 12,192
Supplies - - 4,836
Other services and charges - 1,974 2,432
Total expenditures $ 77,200 21,709 21,013
5,573 7,126
60,605 169,732
4,836
4,406
66,178 186,100
i
t
Exhibit J -18
CITY OF SEWARD
Parking Revenue Enterprise Fund
Balance Sheet
June 34, 1999
with Comparative Amounts for 1998
Assets 1 999 1998
Current assets:
Cash and investments $ 43,888 57,593
Accounts receivable 1,698 12,391
Total current assets $ 45,586 69,984
Liabilities and Fund Equity
Current liabilities:
Accounts payable 265 34,395
Other accrued liabilities 4,623 -
Total current liabilities 4,888 34,395
Retained earnings - unreserved 40,698 35,589
45,586 69,984
CITY OF SEWA"
Parking Revenue Enterprise Fund
Statement of Revenues, Expenses,
and Changes in Retained Earnings
Year Ended June 30, 1999
with Comparative Amounts for 1998
Operating revenues:
Parking tickets
Parking commissions
Total operating revenues
Operating expenses:
Salaries and employee benefits
Contracted services
Supplies and maintenance
Administration and general
Total operating expenses
Earnings from operations
Nonoperating revenues -
investment income
Net earnings
Retained earnings at beginning of year
Retained earnings at end of year
100
Exhibit J -19
1999 1998
55,839 -
34,823 67,585
90,662 67,585
16,384
18,581 34,982
42,386 3,371
9,859 5,678
87,210 44,031
3,452 23,554
1,657 834
5,109 24,388
35,589 11,201
40,698 35,589
t
i
i
CITY OF SEWARD
Parking Revenue Enterprise Fund
Statement of Cash Flows
Year Ended June 30, 1999
with Comparative Amounts for 1998
Cash flows from operating activities:
Earnings from operations
Adjustments to reconcile earnings from operations
to net cash flows from operating activities:
Decrease in assets - accounts receivable
Increase (decrease) in liabilities:
Accounts payable
Due to other funds
Other accrued liabilities
Net cash flows from operating activities
Cash flows from investing activities - investment income received
Net increase (decrease) in cash and investments
Cash and investments at beginning of year
Cash and investments at end of year
101
Exhibit J -20
1999 1998
3,452 23,554
10,693 848
34,130) 34,395
2,038)
4,623 -
15,362 ) 56,759
1,657 834
13,705) 57,593
57,593 -
43,888 57,593
1
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102 1
INTERNAL SERVICE FUND
The Internal Service Fund is used to account for goods and services
provided on a cost - reimbursement basis, by one City department to other
City departments, and consists of the Motor Pool which accounts for the
acquisition of vehicles and mobile equipment which are then leased to the
various departments of the City.
7
i
i
CITY OF SEWARD
Motor Pool Intemal Service Fund
Balance Sheet
June 30, 1999
with Comparative Amounts for 1998
Assets
Current assets - cash and investments
Equipment and vehicles
Less accumulated depreciation
Net equipment and vehicles
Liabilities and Fund Equity
Liabilities:
Current liabilities:
Accounts payable
Current portion of capital lease obligations
Total current liabilities
Long -term debt - capital lease obligations, excluding
current portion
Total liabilities
Fund equity:
Contributed capital
Less accumulated amortization
Net contributed capital
Retained earnings - unreserved
Total fund equity
103
Exhibit K -1
1999 1998
268,258 302,346
1,255,045 1,059,062
553,404 (433,296)
701,641 625,766
969,899 928,112
6,282
87,257 82,490
87,257 88,772
224,371 311,628
311,628 400,400
487,108 402,745
24,324) (4,865
462,784 397,880
195,487 129,832
658,271 527,712
969,899 928,112
CITY OF SEWARD
Motor Pool Internal Service Fund
Statement of Revenues, Expenses,
and Changes in Retained Earnings
Year Ended June 30, 1999
with Comparative Amounts for 1998
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
Retained earnings at beginning of year
Retained earnings at end of year
104
Exhibit K -2
1999 1998
169,440 162,011
120,108 113,186
46,196
49,332 48,825
16,665 15,307
101} L4,305)
3,136} X99$)
46,196 39,827
19,459 3,243
65,655 43,070
129,832 86,762
195,487 129,832
i
i
i
CITY OF SEWARD
Motor Pool Internal Service Fund
Statement of Cash Flows
Year Ended June 30, 1999
with Comparative Amounts for 1998
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 - prepaid expenses
Increase (decrease) in liabilities - accounts payable
Net cash flows from operating activities
Cash flows from capital and related financing activities:
Principal payments on long -term debt
Interest payments on long -term debt
Acquisition of equipment and vehicles
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
Cash and investments at beginning of year
Cash and investments at end of year
105
Exhibit K -3
1999 1998
49,332 48,825
120,108 113,186
2,242
6,282) 6,282
163,158 170,535
82,490) (77,984)
19,801) (24,305)
195,983) -
84,363 -
213,911) 102,289
16,665 15,307
34,088) 83,553
302,346 218,793
S 268,258 302,346
THIS PAGE LEFT BLANK INTENTIONALLY
1
106 1
I FIDUCIARY FUND
1
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.
11
Exhibit L -I
CITY OF SEWARD
Teen Council Agency Fund
Balance Sheet
June 30, 1999
with Comparative Amounts for 1998
Assets 1999 1998
Cash and investments $ 2,523 2,239
1
Liabilities
Accounts payable 764 312
Due to Teen Council 1,759 1,927
2,523 2,239
1
1
t
1
107
1
Exhibit L -2
CITY OF SEWA"
Teen Council Agency Fund
Statement of Changes in Assets and Liabilities
Year Ended June 30, 1999
Balance at Balance at
July 1 1998 Additions Deletions June 30 1999
Assets
Cash and investments $ 2,239 10,544 10,260 2,523
Liabilities
Accounts payable 312 764 312 764
Due to Teen Council 1,927 9,780 9,948 1,759
2,239 10,544 10,260 2,523
108
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 fired 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.
CITY OF SEWARD
General Fixed Assets Account Group
Schedule of General Fixed Assets by Sources
June 30, 1999
with Comparative Amounts for 1998
General fixed assets:
Land and land rights
Buildings
Improvements other than buildings
Equipment
Construction in progress
1
Investment in general fixed assets:
Capital Project Funds
General Fund
1
1
1
109
Exhibit M -1
1999 1998
3,870,420 3,622,374
53,658,927 6,139,715
10,456,706 8,556,362
2,852,411 1,717,771
8,079,960 61,463,726
78,918,424 81,499,948
73,792,900 76,660,029
5,125,524 4,839,919
78,918,424 81,499,948
CITY OF SEWARD
General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets
Year Ended June 30, 1999
Land and land rights $
Buildings
Improvements other than buildings
Equipment
Construction in progress
Exhibit M -2
Balance at Balance at
MY 1, 1998 Add_ itions Deletions June 30 1999
3,622,374 475,055 227,009 3,870,420
6,139,715 47,689,518 170,307 53,658,926
8,556,362 1,900,344 10,456,706
1,717,771 1,147,332 12,692 2,852,411
61,463,726 712,736 54,096,501 8,079,961
81,499,948 51,9,985 54,5066,,509 78,9I8,424
110
i
Exhibit M -3
CITY OF SEWARD
General Fixed Assets Account Group
Schedule of General Fixed Assets by Function and Activity
June 30, 1999
Public works:
Streets
Land
18,236 647,188
Improve -
Building inspector 2,600
and
City shop
meets
21,123 792,946
Total public works
Land
18,236 670,911
Other than
Parks and recreation 284,909
Function and Activi Rights Buildin s Buildings Eauiument Total
General government:
City Council/Mayor 54,323 54,323
City manager 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 2,661 2,202,741
Alaska Sealife Center 47,688,968 1,862,103 1,039,498 50,590,569
General services 8,005,937 51,007 8,056,944
Community and Senior Center 920,709 920,709
Nondepartmental 3,870 420 3,870,420
Total general government 3.870,420 50,809,757 9,868,040 1,354,616 65,902,833
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 18,236 647,188 782,369
Building inspector 2,600 2,600
City shop 771 ,823 21,123 792,946
Total public works 888,768 18,236 670,911 1,577,915
Parks and recreation 284,909 570,430 116,567 971,906
Library 637,741 53,900 691,641
Total general fixed assets allocated
to functions $ 3,870,420 53,658,926 10,456,706 2,852,411 70,838,463
Construction in progress - 8,079,961
Total general fixed assets $ 78,918,424
111
Exhibit M -4 '
CITY OF SEWAIW
General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets by Function and Activity
Year Ended June 30, 1999
General Fixed General Fixed
Assets at Assets at
Function and Agiix4y July It 1" Additions Deletions June 30, 1999
General government:
City Council /Mayor
City manager
City clerk
Finance
Community development
Municipal building
Alaska Sealife Center
Historic railroad depot
General services
Community and Senior Center
Nondepartmental
Total general government
Public safety:
Police
Jail
Animal control
Fire
Seward Volunteer Ambulance Corp
Total public safety
Public works:
Streets
Building inspector
City shop
Total public works
Parks and recreation
Library
Construction in progress
51,422 2,901 54,323
5,684 5,684
10,613 10,613
186,490 11,172 12,692 184,970
5,860 5,860
2,185,025 17,716 2,202,741
50,590,569 50,590,569
130,000 130,000
8,056,944 8,056,944
920,709 920,709
3,622,374 475,055 227,009 3,870,420
15,175,121 51,097,413 369,701 65,902,833
179,508 15,429 17,718 177,219
12,562 12,562
156,720 156,720
1,326,360 40,307 1,286,053
61,614 61,614
1,736,764 15,429 58,025 1,694,168
689,133 93,236 782,369
2,600 2,600
792,946 792,946
1,484,679 93,236 1,577,915
948,567 23,339 971,906
691,091 550 691,641
6.1,463,726 712,736 54,096,501 8,079,961
81,499,948 51,942,703 54,524,227 78,918,424
112
I
GENERAL LONG -TERM DEBT ACCOUNT GROUP
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.
J
Exhibit N -1
CITY OF SEWARD
General Long -Term Debt Account Group
Schedule of General Long -Term Debt
June 30, 1999
with Comparative Amounts for 1998
Amount Available and to be Provided for the
Payment of General Long-Term Debt 1999 1998
Amount available in Debt Service Fund $ 336,095 242,332
Amount to be provided:
Accrued annual leave 202,672 194,026
Bonds payable 8,971,829 9,347,067
Retirement incentive program payable 29,207 43,810
Seward General Hospital PERS liability 960,286 960,286
Total amount to be provided 1 0,163,994 10,545,189
10,500,089 10,787,521
General Long -Term Debt Payable
Accrued annual leave 202,672 194,026
1990 bonds payable 145,000 210,000
1993 refunding bonds payable for the 1987 Series A 310,640 337,115
1993 refunding bonds payable for the 1990 Series A 1,405,000 1,420,000
1996 Hospital bonds 7,325,000 7,500,000
Retirement incentive program payable 29,207 43,810
Seward General Hospital PERS liability 1,082,570 1,082,570
10,500,089 10,787,521
1
113
CITY OF SEWARD, ALASKA
Schedule of Year 2000 Issues
Year Ended June 30, 1999
Exhibit 0-1 '
A. General Descri tion '
The City of Seward is currently addressing Year 2000 issues relating to its computer
systems and other electronic equipment. The Year 2000 issue refers to the fact that
many computer programs use only the last two digits to refer to a year. Therefore, '
both 1900 and 2000 would be referred to as "00 ". Computer programs have to be
adjusted to recognize the difference between those two years or the programs will fail
or create errors. Also some programs may not be able to recognize that 2000 is a leap ,
year. Further, the Year 2000 issue could affect electronic equipment containing
computer chips that have date recognition features. '
The City has identified certain computer systems and electronic equipment that are
mission - critical and is subjecting those systems and equipment to the following stages '
of work to address Year 2000 issues:
1. Awareness stage — establishing a budget and project plan for dealing with the ,
Year 2000 issue.
2. Assessment stage — identifying the systems and components for which Year
2000 compliance work is needed.
3. Remediation stage -- making changes to the systems and equipment.
4. Validation/testing stage — validating and testing the changes that were made
during the remediation stage. '
B. Status
The City has taken an inventory of computer systems and other electronic equipment that ,
may be affected by the Year 2000 issue and that are necessary for conducting City
operations. The City's financial information system has been certified by the vendor
as being Year 2000 compliant. No significant external resources have been '
committed as of June 30, 1999 towards this project.
The City has completed the awareness, assessment and remediation stage for all its
mission critical systems and electronic equipment. The City is in the process of
completing the validation/testing stage.
Because of the unprecedented nature of the Year 2000 issue, its effects and the success of
related remediation efforts will not be fully determinable until the Year 2000 and
thereafter. Management cannot assure that the City of Seward is or will be Year 2000 ,
ready, that the City's remediation efforts will be successful in whole or in part, or that
parties with whom the City does business will be Year 2000 ready. '
114 1
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i
PART III
STATISTICAL SECTION
Table 1: General Fund Revenue by Source
Table 1 A: 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 b: Special Property Assessment Collections
Table 7: Ratio of Net General Obligation Bonded Debt 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
Table 9: Ratio of Annual Debt Service Expenditures for General Obligation
Debt to Total General Fund Expenditures
Table 10: Revenue Bond Coverage
Table 11: Property Value, Construction and Bank Deposits
Table 12: Principal Taxpayers
Table 13: Miscellaneous Statistics
CITY OF SEWARD
General Fund Revenues By Source
Last Ten Fiscal Years
Tableabe I
Property Licenses Inter- Charges Fines
Fiscal
Year Taxes
Assess-
tnentt
and
Permits
govern-
mental
for
Services
And
Bails Interest Misc. total
1990 2,312,297 35,470 77,920 903,879 1,357,203 15,539 330,434 161,314 5,194,056
1991 2,293,728 230,546 69,195 1,046,659 2,025,766 13,058 410,593 95,077 56,184,622
1992 2,627,050 56,505 74,005 913,137 51,879,663 518,158 245,872 124,466 5,888,856
1993 2,509,708 32,573 23,736 983,759 2,425,012 41,892 236,986 47,862 6,301,528
1994 2,882,005 19,795 33,132 903,835 2,104,588 35,230 102,824 36,807 6,118,216
1995 3,081,177 2,241 61,073 789,157 1,760,860 49,289 221,832 39,340 6,004,969
1996 2,923,340 5524 119,982 909,521 1,595,223 26,945 219.514 S106,126 55,901,175
1997 3,072,913 51,871 200,964 1,099,869 1,662,854 12,383 280,363 550,079 56,381,294
1998 3,293,763 SO 115,106 1,105,212 51,540,141 14,495 261,974 147,861 6,478,552
1999 S3,584,389 SO 144,003 51,021,209 51,475,581 17,347 214,140 218,597 6,675,266
n
1 115
I
Table 1 A
CITY OF SEWARD
General Government Tax Revenues By Source
Last Ten Fiscal Years
Payment
Fiscal Property Sales In Lieu Bed
Year Tax Tax of Tax Tax (1) Other 2 Total
1990 456,143 1,193,900 629,517 32,737 2,312,297
1991 409,663 1,190,645 679,292 14,128 2,293,728
1992 619,566 1,268,572 692,653 46,259 2,627,050
1993 515,286 1,286,358 681,615 26,449 2,509,708
1994 468,880 1,484,355 864,922 6,295 57,553 2,882,005
1995 498,016 1,587,199 904,889 7,350 83,723 3,081,177
1996 514,588 1,619,606 693,626 53,461 42,059 2,923,340
1 997 479,062 1 ,734,019 729,498 128,188 2,146 3,072,913
1998 518,788 1,820,230 799,978 148,211 6,556 3,293,763
1999 523,993 2,029,485 864,106 163,330 3,475 3,584,389
1) In Fiscal Year 1994 and 1995, lodging assessment fee was based on $30 per room, per year.
Beginning Fiscal Year 1996, lodging assessment fee was replaced by 4% hotel/motel room tax.
2) Represents tax - related penalties and interest, and harbor parking assessment fee (discontinued after FY96).
116
i
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i
Table 2
CITY OF SEWARD
General Governmental Expenditures By Function ( 1)
Last Ten Fiscal Years
Fiscal General Public Public Parks and Debt
Year Government Safetv Works Recreation Ubrary Srvic e Total
1990 1,353,714 1,359,214 5550,255 357,802 122,392 154,574 3,897,951
1991 1,488,855 1,584,821 608,287 449,119 154,870 5362,260 4,648,212
1992 1,851,718 1,640,081 692,653 493,106 193,510 5345,265 5,216,333
1993 1,779,085 1,682,176 689,209 471,045 184,274 367,509 5,173,298
1994 1,542,179 1,782,396 722,202 443,661 200,553 343,702 S5,034,693
1995 1,567,287 1,835,194 801,753 430,112 190,517 282,748 5,107,611
1996 1,485,903 1,860,349 791,868 508,467 218,175 270,201 5,134,963
1997 1,972,584 1,919,233 5790,386 632,389 228,894 220,816 5,764,302
1998 1,960,687 1,876,870 831,248 609,001 234,033 278,506 5,790,345
1999 1,542,370 51,914,943 863,536 597,516 227,882 792,267 5,938,514
1) Includes General Fund and Debt Service Fund
117
CITY OF SEWARD
Property Tax Levies And Collections
Last Ten Fiscal Years
Table 3
Ratio of
Total Tax Delinquent
Total Current Percent Delinquent Total Collections Outstanding Taxes As
Fiscal Tax Tax of Levy Tax Tax As A % Delinquent A % Of
Year Levy Collections Collected Collections Collections Of Levy Taxes Total Levy
1990 418,395 387,531 92.6% 68,612 487,007 116.4% 48,507 11.6%
1991 463,743 413,850 89.2% 5,731 419,581 90.5% 61,460 13.3%
1992 489,226 447,123 91.4% 22,471 469,594 96.0% 76,962 15.7%
1993 498,366 470,322 94.4% 31,983 502,305 100.8% 67,164 13.5%
1994 496,933 434,736 87.5% 29,171 463,907 93.4% 98,709 19.9%
1995 546,115 469,274 85.9% 99,191 568,465 104.1% 76,237 14.0%
1996 505,034 447,110 88.5% 66,044 513,153 101.6% 68,253 13.5%
1997 489,187 438,512 89.6% 2,294 440,807 90.1% 83,389 17.1%
1998 5495,052 466,528 94.2% 13,791 5480,319 97.0% 60,601 12.2%
1999 505,323 488,883 96.7% 32,515 5521,398 103.2% 40,930 8.1%
1
Source: Kenai Peninsula Borough
1
118 1
Table 4
CITY OF SEWARD
Assessed And Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Source: "Alaska Taxable ", State of Alaska
Kenai Peninsula Borough Certified Assessment Roll
t
119
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 Value Value Value Value Value Value Actual Value
1990 88,508,166 98,794,000 28,540,373 40,833,200 117,048,539 139,627,200 83.83%
1991 97,193,437 100,612,800 53,601,900 64,419,000 150,795,337 165,031,800 91.37%
1992 88,464,566 100,667,900 52,574,761 68,929,200 141,039,327 169,597,100 83.16%
1993 92,122,180 98,261,300 50,038,979 66,112,200 142,161,159 1649383,500 86.48%
1994 102,022,980 11 1,378,100 53,373,128 69,439,400 155,396,108 180,817,500 85.94%
1995 103,3309330 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 108,3189979 117,443,100 50,476,044 70,537,400 158,795,023 187,980,500 84.47%
1998 106,1969750 117,506,400 49,253,008 67,755,600 155,4499758 185,262,000 83.91%
1999 106,918,000 114,049,300 52,852,159 70,534,400 159,770,159 184,583,700 86.56%
Source: "Alaska Taxable ", State of Alaska
Kenai Peninsula Borough Certified Assessment Roll
t
119
CITY OF SEWARD
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
Per $1,000 of Assessed Value)
Fiscal
Year City - Borough Total
1990 3.00 5.75 8.75
1991 3.00 5.75 8.75
1992 3.00 7.55 10.55
1993 3.00 8.55 11.55
1994 3.00 8.55 11.55
1995 3.00 8.62 11.62
1996 3.00 8.62 11.62
1997 3.00 8.30 11.30
1998 3.12 8.38 11.50
1999 3.12 8.08 11.20
Source: City of Seward
Kenai Peninsula Borough
120
Table 5
t
CITY OF SEWMW
Special Property Assessment Collections
Last Ten Fiscal Years
Table 6
1
Fiscal
Current Current
Assessments Assessment
Ratio of
Collections To
Total
Outstanding
Year Due Collections Amount Due Assessments
1990 56,638 $28,731 50.73% 361,919
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
121
CITY OF SEWARD
Ratio of Net General Obligation Bonded Debt
To Assessed Value And Net General Obligation Bonded Debt Per Capita
Last Ten Fiscal Years
Table 7
1
Gross Debt Ratio of Net Net
Bonded Payable from Net Bonded Debt Bonded
Fiscal Assessed Debt Enterprise Bonded to Assessed Debt Per
Year Population (1) Value (21* 3i* Revenues* Debt* Value Capita
1990 2,829 117,049 11,444 9,206 2,238 1.91% 791
1991 2,699 150,795 11,021 8,796 2,225 1.48% 824
1992 2,806 141,039 10,563 8,351 2.212 1.57% 788
1993 2,704 142,161 10,039 7,886 2,153 1.51% 796
1994 2,704 155,396 10,249 7,930 2,319 1.49% 858
1995 2,732 178,934 9,549 7,310 2,239 1.25% 819
1996 3,034 164,148 8,788 6,636 2,152 1.31% 709
1997 2,914 158,795 15,600 6,037 9,563 6.02% 3,282
1998 2,999 155,450 14,865 5,398 9,467 6.09% 3,157
1999 3,040 159,770 13,910 4,724 9,186 5.75% 3,022
Amounts expressed in thousands.
1) Annual State census
2) From table 4
3) Amount does not include revenue bonds
Source: State of Alaska
Kenai Peninsula Borough
1
122
CITY OF SEWARD
Legal Debt Margin
June 30, 1999
No debt limit mandated by law.
4
u
H
123
Table 8
Table 8A '
CITY OF SEWARD
Computation of Direct And Overlapping Bonded Debt ,
General Obligation Bonds
Juste 30, 1999
Jurisdiction
Direct:
City of Seward
Overlapping:
Kenai Peninsula Borough
Total
Net General
Obligation
Bonded Debt
Outstanding__
9,185,640 (1)
28,375,000 (3)
37,560,640
Percentage
Applicable To
City of Seward
100.00%
3.85% (2)
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 = $127,214,572) to total assessed
value of the Kenai Peninsula Borough ($3,304,130,366). Source: "Alaska Taxable ", State of Alaska.
3) Source: Kenai Peninsula Borough Fiscal Year 2000 Budget. '
1
124
1
1
Amount
Applicable To
City of Seward
9,185,640
1,092,438
110,27 078
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 = $127,214,572) to total assessed
value of the Kenai Peninsula Borough ($3,304,130,366). Source: "Alaska Taxable ", State of Alaska.
3) Source: Kenai Peninsula Borough Fiscal Year 2000 Budget. '
1
124
1
1)
2)
i
Fiscal
Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
CITY OF SEWARD
Ratio of Annual Debt Service Expenditures
For General Obligation Debt (1)
to Total General Fund Expenditures
Last Ten Fiscal Years
Total
General
Expenditures (2
3,897,951
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
Table 9
Ratio of
Debt Service to
General
Expenditures
3.97%
7.79%
6.62%
7.10%
6.83%
5.54%
5.26%
3.83%
4.81%
13.34%
General obligation debt reported in the enterprise, internal service and capital project funds, with government
commitment, have been excluded.
Total General Expenditures includes General Fund and Debt Service Fund.
125
Total
Debt
Principal Interest Service (1)
79,757 74,817 154,574
129,890 232,370 362,260
143,563 201,701 345,265
180,448 187,061 367,509
199,898 143,804 343,702
143,511 139,237 282,748
139,216 130,985 270,201
99,187 121,629 220,816
115,275 163,231 278,506
281,475 510,792 792,267
Total
General
Expenditures (2
3,897,951
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
Table 9
Ratio of
Debt Service to
General
Expenditures
3.97%
7.79%
6.62%
7.10%
6.83%
5.54%
5.26%
3.83%
4.81%
13.34%
General obligation debt reported in the enterprise, internal service and capital project funds, with government
commitment, have been excluded.
Total General Expenditures includes General Fund and Debt Service Fund.
125
Table 10
MY OF SEWARD
Revenue Bond Coverage
Electric Enterprise Fund
Last Ten Fiscal Years (5)
Net Revenue Debt Service Requirements 3
Fiscal Gross Operating Available for
Year Revenues(1) Expenses(2) Debt Service Principal Interest 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 3,604,036 2,351,663 184,435 184,435 12.75
1998 6,428,124 4,064,418 2,363,706 50,000 $184,435 234,435 10.08
1999 6,720,313 3,644,529 3,075,784 75,000 $180,760 255,760 12.03
1) Total revenues, including interest.
2) Total operating expenses exclusive of depreciation and payment in lieu of taxes.
3) includes principal and interest of revenue bonds only. Excludes general obligation bonds reported in the Electric
Enterprise Fund.
4) Revenue bond agreement requires Net Revenue Available for Debt Service be at least 1.30 times the amount
of the total annual debt service requirement.
5) No Electric Enterprise Fund revenue bonds from 1989 -1994.
i
126
i
Fiscal
Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Table 11
CITY OF SEWARD
Property Value, Construction and Bank Deposits
Last Ten Fiscal Years
Commercial Residential Construction
Construction
Total Number
BankPropertyof
DepositsValue (1) Permits Value
98,794,000 29 3,681,516
100,612,800 29 2,163,276
100,667,900 21 842,685
98,261,300 16 328,462
11 1,378,100 20 3,120,673
111,294,400 27 31,539,700
113,853,300 16 8,076,000
117,443,100 29 7,770,836
117,506,400 24 2,095,035
114,049,300 22 5,937,950
Number
of Bank
Permits Value Deposits
27 679,100 28,444,000
21 1,053,150 27,477,800
20 620,425 32,518,000
34 1,504,173 27,808,000
24 384,400 28,409,000
28 746,600 35,186,501
31 1,093,800 36,572,000
41 1,513,902 38,598,136
34 1,493,675 43,350,000
25 1,271,900 47,116,749
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
127
CITY OF SEWARD
Principal Taxpayers
June 30, 1999
Taxpayer Type of Business
FY99
Seward Fisheries /Icicle Seafoods Seafood Processing
Suneel Alaska Corporation Coal Export
Alaska Heritage Tours, Inc. Boat Tours
New Seward Hotel/New Seward Saloon
5,720,351
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
Table 12
2,646,596 1.7%
2,612,74$
Percent of
FY99 Total
Assessed Assessed
Valuation(l) Valuation 2
6,640,993 4.2%
5,720,351 3.6%
5,305,623 3.3%
2,646,596 1.7%
2,612,74$ 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 5159,770,159. Source: Kenai Peninsula Borough.
128
Table 13
CITY OF SEWARD
MISCELLANEOUS STATISTICS
June 30 1999
Date of Incorporation June 1, 1912
Class Home Rule
Form of Government Council/Manager
Number of employees
Non - Exempt 62
Exempt
Area, Square Miles
16
22
Population 3,040
Qualified Voters 1,958
City of Seward facilities and services:
Miles of streets 43.14
1 Number of street lights 198
Building Permits Issued 47
Recreation and Culture:
Number of Parks & Playgrounds 11
1 Number of Libraries 1
Number of Volumes 30,000
Fire Protection
Number of Stations 2
Number of Paid Firefighters and Officers 2
Number of Volunteers
Number of Calls Answered
28
120
Fire Rating (ISO) 319
Police Protection
Number of Stations 1
Number of Officers 9
Number of law violations:
Physical arrests 399
Traffic violations 376
Parking violations 125
Sewerage System:
Number of treatment plants 2
Number of service connections 837
Daily average treatment in gallons 870,000
Maximum daily capacity of treatment plant in gallons 1,200,000
Water System:
Number of service connections
Number of fire hydrants
864
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
Table 13, continued
129
1
CITY OF SEWARD '
MISCELLANEOUS STATISTICS
June 30, 1999
1
130 t
Miles of transmission lines 42
Number of sub - stations 3
Total number of kilowatt sales 55,252,317
Harbor and Port Operations:
Registered vessels 3,244
Number on waiting list for boat slips 367
Number of boat lifts 563
General cargo tonnage 17,780
Fish product tonnage 1,542 texcludesSewardFisheries, Inc. and Cook Inlet Fisheries, Inc.)
Petroleum (gallons) 3,258,244
Facilities and services not included in the reporting entity:
Education
Elementary School
Number of Students Enrolled 400
Number of Teachers 23
Jr /Sr High School
Number of Students Enrolled 418
Number of Teachers 25.25
Alaska Vocational Technical Center
Number of Students Served Annually 1,500
Number of Teachers 33
Hospital
Providence Seward Medical Center:
Number of patient beds (6 primary care; 2 swing beds) 8
Number of employees:
Non - Exempt 44
Exempt 6
1
130 t