HomeMy WebLinkAbout2000CAFRk. r " -
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I CITY OF SEWARD
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COMPREHENSIVE ANNUAL
FINANCIAL REPORT
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Fiscal Year
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Ended December 31, 2000
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
of the
CITY OF SEWARD, ALASKA
1
For the Fiscal Year Ended
1 December 31, 2400
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Edgar Blatchford
MAYOR
W. Scott Janke
CITY MANAGER
Prepared by the Finance Department
Kristin M. Erchin er CGFM MPAg >
FINANCE DIRECTOR
THIS PAGE LEFT BLANK INTENTIONALLY
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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
Page
Table of Contents I -VI
Letter of Transmittal VII-XIX
Certificate of Achievement for Excellence in Financial Reporting XX
List of Principal Officials XXI
Seward Citizens — Organizational Chart XXII
PART II - FINANCIAL SECTION
Exhibit Page
Indeaeadent Auditor's Report 1 -2
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and Account Groups A -1 4 -5
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental
Fund Types B -1 6
Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - General Fund C -1 7
Combined Statement of Revenues, Expenses and Changes
in Retained Earnings - All Proprietary Fund Types D-1 9
Combined Statement of Cash Flows - All Proprietaryptary
Fund Types E -1 10-11
Notes to General Purpose Financial Statements 13 -37
Additional Information
Combining, Individual Fund, and Account Group
Statements and Schedules:
General Fund:
Balance Sheet F -1 39
Statement of Revenues, Expenditures and
Changes in Fund Balance F -2 40
Statement of Revenues, Expenditures and
Changes in Fund Balance -- Budget and Actual F -3 41-47
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CITY OF SEWARD
Comprehensive Annual Financial Report
Table of Contents, continued
FINANCIAL SECTION, continued
Exhibit Pale
Additional Information,_ continued
Combining, Individual Fund, and Account Group
Statements and Schedules, continued:
Special Revenue Funds:
G -1 52
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances G -2 53
Parks and Recreation:
G -3 54CombiningBalanceSheet
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:
G -7 58
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances G -8 59
Debt Service Fund:
H -1 61
Balance Sheet
Statement of Revenues, Expenditures and Changes in
H -2 62
Fund Balance
II
CITY OF SEWARD
Comprehensive Annual Financial Report
Table of Contents, continued
FINANCIAL SECTION, continued
Additional Informationg 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
Parks 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
Enterprise Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
Combining Statement of Cash Flows
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III
Exhibit PM e
I -1 66
I -2 67
I -3 68
1-4 69
1 -5 70
1 -6 71
1 -7 72
1 -8 73
J -1 16 -77
J -2 79
J -3 80 -81
CITY OF SEWARD
Comprehensive Annual Financial Report
Table of Contents, continued
FINANCIAL SECTION, continued
Exhibit Pape
Additional Information, continued
Combining, Individual Fund, and Account Group
Statements and Schedules, continued:
Enterprise Funds, continued:
Electric:
Balance Sheet J-4 82 -$3
Statement of Revenues, Expenses
and Changes in Retained Earnings J -5 84
Statement of Cash Flows J-6 85
Schedule of Operating Expenses 3-7 86
Combining Schedule of Electric Capital Projects 1-8 87
Water and Sewer:
Balance Sheet J -9 8
Statement of Revenues, Expenses
and Changes in Retained Earnings J -10 89
Statement of Cash Flows J -11 90
Schedule of Operating Expenses J -12 91
Combining Schedule of Water and Sewer Capital Projects 3 -13 92
Harbor:
Balance Sheet J -14 93
Sta ernent of Revenues. Expenses
and Changes in Retained Earnings J -15 94
Statement of Cash Flows J -16 95
Combining Schedule of Harbor Capital Projects J -17 96
Seward Marine Industrial Center:
Balance Sheet J -18 97
Statement of Revenues, Expenses and
Changes in Retained Earnings J -19 98
Statement of Cash Flows J -20 99
Parking Revenue: t
Balance Sheet J -21 100
Statement of Revenues, Expenses and
Changes in Retained Earnings J -22 101
Statement of Cash Flows J -23 102
N
CITY OF SEWA.RD
FinancialComprehensiveAnnual Report
Table of Contents, continued
FINANCIAL SECTION, continued
xhibit PALe
103
104
105
107
108
109
111
112
113
114
115
117
118
Additional Information, continued
Combining, individual Fund, and Account Group
Statements and Schedules, continued:
Motor Pool Internal Service Fund:
Balance Sheet K -1
Statement of Revenues, Expenses and
Changes in Retained Earnings K-2
Statement of Cash Flows K -3
Funds: Agency
Combining Balance Sheet L-1
Teen Council - Statement of Changes in Assets and
Liabilities L -2
AVTEC Contract — Statement of Changes in Assets and
Liabilities L -3
General Fixed Assets Account Group:
Schedule of General Fixed Assets by Sources M -1
Schedule of Changes in General Fixed Assets M -2
Schedule of General Fixed Assets
by Function and Activity M -3
Schedule of Changes in Generai Fixed Assets
by Function and Activity M-4
General Long -Term Debt Account Group —
Schedule of General Long -Term Debt N -1
Schedule of Expenditures of Federal Awards 0-1
P-1ScheduleofStateFinancialAssistance
V
103
104
105
107
108
109
111
112
113
114
115
117
118
CITY OF SEWARD
Comprehensive Annual Financial Report
Table of Contents, continued
PART 111 -- STATISTICAL SECTION
Pane
Table I General Fund Revenues by Source 119 ,
120
Table IA General Government Tax Revenues by Sources
121
Table 2 General Fund Expenditures by Function 122
Table 3 Property Tax Levies and Collections 123 ,
Table 4 Assessed and Estimated Actual Value of Taxable Property
Table 5 Property Tax Rates — Direct and Overlapping Governments 124
125
Table 5 Special Property Assessment Collections
Table 7 Ratio of Net General Obligation Bonded Debt to Assessed Value 126andNetGeneralObligationBondedDebtPerCapita
Table 8 Legal Debt Margin
8A Computation of Direct and Overlapping Bonded Debt
127
128 '
Table
Table 9 Ratio of Six -month Debt Service Expenditures for General
Obligation Debt to Total General Fund Expenditures 129
Table 10 Revenue Bond Coverage
Table 11 Property Value, Construction and Bank Deposits
130
131
Table 12 Principal Taxpayers
132
133 -134 '
Table 13 Miscellaneous Statistics
PART IV — SINGLE AUDIT SECTION
Federal Single Audit Reports
Internal ControlIndependentAuditor's Report on Compliance and on
Over Financial Reporting Based on an Audit of Financial Statements 135PerformedinAccordancewithGovernmentAuditingStandards
Independent Auditor's Report on Compliance with Requirements
Applicable to Edc ;1!'I cr prow d o "- Lnternal Control Over
13b -1 j7
Compliance in Accordance with OMB Circular A -133
Schedule of Findings and Questioned Costs
13$
Summary Schedule of Prior Audit Findings
139 ,
140
Corrective Action Plan
State of Alaska Single Audit Reports
independent Auditor's Report on Compliance and on Internal Control
Over Financial Reporting Based on an Audit of Financial Statements 141 ,
Performed in Accordance with Government Auditing Standards
independent Auditor's Report on Compliance with Requirements
Applicable to Each Major Program and on Internal Control Over
Compliance in Accordance with the State of Alaska Audit Guide 142
and Compliance Supplement for State Single Audits
143 '
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Main Office (907) 224 -4050
CITY OF SEWARD + Police (907) 224 -3338
P.O. BOX 167 ' - • Harbor (907) 224 -3138
SEWARD. ALASKA 99664 -0167 ' + Fire (907) 224 -3445
Fax (907) 224 -4038
March 23, 2001, '
To the Citizens of the City of Seward:
It is with great pleasure that we present to you the City of Seward Comprehensive Annual
Financial Report for the fiscal year ended December 31, 2000. This report satisfies state statutes
and local ordinances which 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 four sections: introductory, financial
statistical, and single audit. 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 single audit section contains federal and state single audit reports, including the
auditor's report on compliance and internal controls over financial reporting, as well as information
regarding any potential findings, questioned costs, prior audit findings, and corrective action plan.
The City is required to undergo an annual single audit in conformity with the provisions of the State
OI Aiabna vi"6SIB' UILat X —
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i9^_ 4AC 41A10j the Single Audit Act of 1884, and the U.S. Office of
Management and Budget Circular A -133, "Audits of States, Local Governments, and Non - Profit
Organizations." For year ended December 31, 2000, the qualifying major state and federal programs
were audited, resulting in no adverse findings. Schedules of expenditures for the federal and state
awards can be found on page 117 -118, with corresponding single audit results on pages 135 -143.
The Reporting Enfily Is s
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
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funds to account for the operations of all harbor - and port- related activities and public parking '
services provided by the City.
Governmental Structure, Local Eegnomic Conditi2as, d Omfiook '
The City was incorporated on June 1, 1912, and became a first -class City under the Alaska Statute's
home rule provisions upon the adoption of the City Charter by a referendum vote of the people on
January 5, 1960. The form of government established by the Charter is the Council- Manager plan.
The Council exercises legislative power and determines all matters of policy for the City. The Council
is composed of a Mayor and six council members who are elected at -large on a non - partisan basis. '
Council members and the Mayor each serve a term of two years.
The City Manager is the administrative head of the City government, is appointed by the Council, and
is responsible to the Council for the proper handling of all City affairs. The City Clerk is also
appointed by the Council. The Clerk's primary responsibilities involve the safekeeping of public
records and the administration of City elections. The City Attorney is appointed by the Council. All
other officers and employees of the City are appointed by the City Manager. Appointments to the '
following positions are made by the City Manager with approval of the Council: Director of
Engineering and Utilities; Chief of Police; Finance Director; and ire Chief. ,
The community is located on the eastern side of the Kenai Peninsula in Southcentral Alaska, 125
highway miles south of Anchorage. Year -round access is available by road, rail, water and commuter
air service. The City has an area of 22 square miles and a population of 2,830. 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
d,ve-rsificsttio-- end stability, The City hag created and enenuraged 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 Seawe
Center (ASLC) began it's third year of operations in 2000. 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. '
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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 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 (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.
In FY2000, the City's General Fund experienced a positive fiscal year as it reported excess revenues
over expenditures of $2,237,969, resulting in a net increase in fund balance of $1,089,011 after
transfers to other funds. Overall, General Fund expenditures came in $355,844 below budget, while
revenues exceeded budget by $1,410,743. The amount generally considered available for
appropriation and for unforeseen emergencies, referred to as General Fund Balance, increased 30.0%
over the preceding year, from $3,613,262 in December, 1999, to $4,697,463 in December, 2000. This
represents a significant improvement in the City's financial condition, compared with recent years.
The City expects to see continued modest increases in tax revenue resulting from recent assessments
of real property, and from growth in the hotel/motel room tax reflecting the construction of additional
hotel capacity. Sales tax revenues continue to increase each year, although they are expected to begin
leveling off somewhat, due to higher fuel costs affecting the tourism industry, as well as lower visitor
counts to the region. The City remains optimistic that its diverse economy serves to hedge against
potential economic downturns affecting the visitor industry.
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Maior Initiatives For the Year
The City's staff, following directives of the City Council, have been involved in a variety of capital
improvement 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, representing the base of
operations for day cruise operations and fishing charters on Resurrection Bay. The City acquired
ownership of the small boat harbor from the State of Alaska in February, 1999, and is undergoing
major repairs and renovations within the harbor basin. In addition to $3.12 million received from the
State of Alaska in exchange for the City assuming ownership of the harbor, the City issued an
additional $3 million of revenue bonds in December 2000 to build additional floats and fish cleaning
stations in the harbor basin. This represents the most extensive renovation of the harbor since it was
rebuilt following the 1964 earthquake, and includes replacing many of the wooden floats with concrete
floats, replacing the electrical system, and installing new water and sewer services. The harbor plaza
beautification project has improved the aesthetics of the harbor uplands, adding new decorative
lighting, planter boxes with trees, shrubs and flowers, picnic tables, park benches, trash containers,
bicycle racks, and interpretive signs.
New water and sewer projects continue to replace and improve aging infrastructure. A new water
well was built to address the increase in demand for water by fish processing plants and cruise ships.
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The new well adds capacity to the water system, enabling storage tanks to remain full. A backup
generator and new building were constructed at lift station #3, and the extension of water and sewer
lines from Gateway Subdivision to Forest Acres Subdivision, is underway.
The City's electric system benefitted from installation of a $2.3 million backup generator capable of
generating 3.2 megawatts of power. The project included construction of a new storage building and
shop, a new battery building, new switchgear, and a step -up transformer. The addition of the backup
generator is expected to reduce the duration of major power outages, and protect the City's power
supply and generating capacity.
The City was involved in a number of additional major programs and improvements, such as:
reconditioning roads in two subdivisions and along Ballaine Boulevard; the design and construction
of a portion of Japanese Creek levee in Forest Acres; replacing aged lighting ballasts and carpeting
in portions of City Hall; installing an automated cataloging and circulation system at the library and
providing improved access to the Internet for patrons; completion of a new playground in Gateway
Subdivision and the addition of a new ADA- accessible multi - station playground structure at the
Ballaine playground; completion of the new Citizen's baseball field; numerous handicapped
accessibility improvements to the Waterfront Park campground, including access to restroome, the
bike path, and pavilions, as well as ADA parking pads, camping sites, and accessible water spigots;
the purchase of land for Fourth and Adams Park will provide for downtown beautification, as well as
much- needed public restroom facilities in the downtown area; major repairs to the fire hall roof; and
the purchase of equipment for the hospital that is expected to improve the delivery of medical tservices, including a new cardiac monitoring system, sterilization system, sigmoidoscope and
gastroscope, new exam tables and video equipment, load bank for the emergency generator, security
fence surrounding the heiipad, etc.
M ' r Initiativtg F9T he Futum
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 Council and administration then met to develop long -term goals, five -year objectives,
nd -nn>> al man — aeement action plans, designed to move the community forward in a proactive
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manner.
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 t
accommodate approximately 380 additional vessels and alleviate overcrowded conditions.
The City of Seward has received a proposal from Homer Electric Association to purchase the Seward
electric utility. In the coming months, council members will meet to discuss the merits of the
proposal, and determine whether it is in the public's interest to consider a sale of the electric utility.
Council will also be asked to consider the fiscal impact of selling publicly owned land in the harbor
to the private sector, to encourage private development of properties which have heretofore been
leased by the City.
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,
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the Qutekcak Shellfish Hatchery, the Alaska Vocational Technical Center, and the construction of
a multi- agency facility to accommodate the needs of the National Park Service and U.S. Forest
Service.
Financial Information
The City's financial statements for governmental funds (General, Special Revenue, Capital Project, iand Debt Service 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 or business -like funds (Enterprise
Funds, Internal Service Funds) are accounted for on the accrual basis. Revenues on the accrual basis
are recognized when earned; expenses are recognized when incurred.
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 financial assistance programs. The results of the City's single audit for the fiscal year
ended December 31, 2000, provided no instances of material weaknesses in internal controls, or
significant violations of applicable laws and regulations.
Each Year, the City Council adopts an annual operating budget for the General Fund, Enterprise
Funds, Internal Service Fund, and Debt Service Fund. The General Fund is the only Fund which is
legally required to have an approved budget and budget appropriations. Capital Project Funds are
generally budgeted on a project- length basis, rather than on an annual basis. In order to maintain
compliance with the adopted budget, the City utilizes an electronic encumbrance accounting system
and budgetary system. These systems provide managers with the tools to stay within their allocated
budget. Throughout the year the budget can be revised one of two ways. The city manager is
authorized to transfer amounts between line items within a department, and between departments
within a fund. The City Council has further authority to, by resolution, transfer unencumbered
balances between funds. Thus, the level of budgetary control (i.e. the level at which expenditures
cannot legally exceed appropriations), is the fund level.
General Gov ramea v hues
The reader is reminded that beginning July 1, 1999, the City of Seward switched from a fiscal year
beginning July 1, to a calendar year beginning January 1. For comparative purposes, we will compare
the current fiscal year (January 1, 2000 - December 31, 2000) to both the interim fiscal period (the
six -month period from July 1, 1999 - December 31, 1999), and the first full prior fiscal year (July 1,
1998 - June 30, 1999). A comparison of the current fiscal year with the prior six -month period
accurately reflects the two columns of data provided in this comprehensive annual financial report.
However, we believe that this comparison is less useful to the reader than a comparison of two full
years' worth of data. The six -month period is referred to as "Six -Month 1999 ", and the first full prior
year from July 1, 1998 - June 30, 1999 is referred to as FY1999.
Revenues from general governmental functions (General, Special Revenue, Debt Service and Capital
Project Funds) totaled $9,035,747 in FY2000, an increase of $1,713,720 or 23.4% from FY1999.
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Compared with Six -Month 1999, revenues increased $4,556,166 or 101.7%. The majority of this
increase is attributed to the General Fund, with General Fund revenues rising $1,282,059 or 19.2%
from FY1999. The following table reflects the major sources of revenue and compares the increase
or decrease to both Six -Month 1999 and FY1999:
Tablel: Revenue Sources for all Governmental Fund Types
The following graph identifies the major sources of general government revenue:
Chart 1: Revenues Sources for all Governmental Fund Types
General, Spacial Ravanua. Capital Project, and Debt Service Funds
9,035,747
Tam
Interpowmmanrtal 196% AN Other a3%
InvesUnw t Inconm 6.4%
Chargm for SeNlcaa Z4.1%
General Fund Revenues
In FY2000, General Fund total revenues exceeded budgeted projections by $1,410,743, helping to
restore a declining General Fund balance. The primary reason for the degree to which revenues
exceeded budget is that the City of Seward does not budget for project management fees received in
the administration of capital grants. These revenues are considered to be one -time revenues and are
therefore not programmed into the City's annual appropriations. Project management fees in FY2000
were $617,059, representing 43.7% of the surplus revenues. Tax revenues came in $267,892 over
budget, representing 18.9% of the surplus. Investment income came in over budget by $274,505, due
to conservative budget estimates and higher -than expected cash balances, representing 19.4% of the
surplus.
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Dollar Increase Percent Increase Dollar Increase Percent Increase
Decrease) Decrease) Decrease) Decrease)
Percent from from from from
Revenue Source Amount of Total Six -Month 1999 Sin -Month 1999 FY19M FY1999
Taxes 3,953,139 43.7% 1,697,813 75.2% 368,750 10.2%
Licenses & Permits 139,871 1.5% 66,156 89.7% 4,132) 18%
Intergovernmental 1,667,366 18.5% 738,580 79.5% 322,856 24.0%
Charges for Services 2,179,832 24.1% 1,254,111 135.9% 704,251 47.7%
Fines and Bails 14,786 0.2% 4,038 37.5% 2,561) 14.7%
Land Sales 0 0.0% 0 100.096 254,085) 100.0%
Investment Income 484,089 5.4% 350,002 261.0% 212,233 78.0%
Miscellaneous 596,664 6.6% 445,466 294.6% 366,408 159.1%
Totals: QO 0 7 " -? 00.0% 4.556.166 101.7% 1.713.720 23.49b_
The following graph identifies the major sources of general government revenue:
Chart 1: Revenues Sources for all Governmental Fund Types
General, Spacial Ravanua. Capital Project, and Debt Service Funds
9,035,747
Tam
Interpowmmanrtal 196% AN Other a3%
InvesUnw t Inconm 6.4%
Chargm for SeNlcaa Z4.1%
General Fund Revenues
In FY2000, General Fund total revenues exceeded budgeted projections by $1,410,743, helping to
restore a declining General Fund balance. The primary reason for the degree to which revenues
exceeded budget is that the City of Seward does not budget for project management fees received in
the administration of capital grants. These revenues are considered to be one -time revenues and are
therefore not programmed into the City's annual appropriations. Project management fees in FY2000
were $617,059, representing 43.7% of the surplus revenues. Tax revenues came in $267,892 over
budget, representing 18.9% of the surplus. Investment income came in over budget by $274,505, due
to conservative budget estimates and higher -than expected cash balances, representing 19.4% of the
surplus.
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Tax Revenues
In FY2000, overall tax revenues, which represent approximately 44% of all general government
revenues, increased $368,750 or 10.2% from FY1999, with most tax categories experiencing increases.
The Kenai Peninsula Borough bills and collects all property and sales taxes on behalf of the City. In
FY2000, general property tax revenues, which includes real and personal property tax, produced
694,332, compared to $523,993 in FY1999, and $515,544 in Six -Month 1999. This represents a
32.5% increase from the prior full year, and is attributed to the fact that the Kenai Peninsula Borough
conducted a full assessment of area -wide properties, bringing them more in line with market values,
and resulting in increased property tax revenues. Property taxes attach as an enforceable lien on
property as of January 1, with taxes being levied on July 1, and are payable in two installments, on
August 15 and November 15. Property tax revenues for FY2000 are based on 1999 property
assessments.
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Sales tax revenues produced $2,197,561 in FY2000, compared to $2,029,485 in FY1999, and
1,197,288 in Six -Month 1999. This represents an increase of $168,076, or 8.3% from the previous
full fiscal year. A full one -third of the City's sales tax revenues are transferred to the Hospital Debt
Service Fund to satisfy debt service obligations on $7.5 million in hospital bonds. Payments in lieu
of tax (PILT) increased to $844,583 in FY2000, up $19,523 from FY1999 (2.3%), and $425,475
101.5%) from Six -Month 1999, PILT is primarily collected from the City's business -like Enterprise
Funds, which contribute 8% of operating revenues to the General Fund to offset the loss of taxes that
would be generated by similar privately -owned enterprises. In addition, the Alaska SeaLife Center
contributes PILT based on 3% of sales, amounting to $55,974 in FY2000. The final source of tax
revenue is a 4% hotel/motel room tax which brought in $212,619 in FY2000, representing an increase
of $49,289 (30.2%) from FY1999, or $90,371(73.9%) from Six-Month 1999. This increase is attributed
to an increase in the number of hotel beds resulting from new hotel construction and renovations.
The following chart shows the distribution of the various categories of tax revenues:
Chart 2: General Fund Tax Revenue by Category
General Fund - $3,953,139
salsa Tax 66.676 Pmpety Tax 17.6% n-
PMUOU"nt"renat 4.1
Sod Tax 6.47.
PILT 21.4%
woo
Other Non -Tax Revenues
Other governmental -type revenues include license and permit fees which declined $4,133 (2.9 %) from
FY1999 (but increased $66,156 or 89.7% from Six -Month 1999), bringing in $139,871. Included in
license and permit fees are business licenses, building permits, and division of motor vehicles
revenues. Business license revenues declined 16% due primarily to a reduction in the number of bed
and breakfasts, as well as fewer reported rentals of personal property. While building permits
X111
increased in volume from 47 permits in FY19N to 59 permits in F72000, the value of the permits
declined significantly, from $7, 209,850 in FY1999 to $3,451,065 in FY2000, resulting in a $13,751
decrease in building permit revenue. Commissions from DMV revenues increased 2596 or $13,469
from FY1999 to FY2000.
Intergovernmental revenues, representing more than 18% of all general government revenues,
showed an increase of $646,157 (63.3%) from FY1999, and compared with the Six -Month 1999 period,
increased $738,580 or 79.5%. This increase is due primarily to an increase in state and federal capital
grants, including $303,606 in FEMA grant funds to address flood mitigation. Intergovernmental
revenues in the General Fund declined $36,978 (3.6%) from FY1999, primarily due to a $175,761
51.7%) decline in state revenue sharing and safe communities funding. This decline was offset by
an increase in raw fish tax revenue of $65,951(33.3%) from FY1999.
Revenues from charges for services, which represent approximately 24% of all general government
revenues, experienced a net increase of $704,251 or 47.7% from FY1999. This represents a $1,254,111
135.4%) increase from Six -Month 1999. The majority of this increase is due to an increase in
administrative fees of $666,511(71.8%) versus FY1999, which can be primarily attributed to project
management fees associated with administering capital grants. Parks and recreation revenues
continue to rise, showing an increase of $30,806 (8.4%) from FY1999, and an increase of $135,051
51.7%) from Six -Month 1999. This increase is attributed to camping fees associated with an increase
in visitors to the City's campgrounds.
Fines and bails experienced a 14.7% decrease compared with FY1999 (coming in 37.5% higher than
the Six -Month 1999), bringing in $14,786. investment income rose by $223,865 or 104.5% from
FY1999 (and was $333,286 higher than Six -Month 1999), bringing in $438,005. This increase is due
primarily to higher Governmental Fund cash balances available for investment. The cash balance
in Governmental Funds rose from $4,067,207 at December 31, 1999 to $5,704,702 at December 31,
2000.
Expenditures for general government purposes totaled $8,037,555 in FY2000, representing an
increase of $985,278 or 13.9% from FY1999 (and an increase of $3,803,474 or 89.8% from Six -Month
1999). Increases and decreases in expenditure levels for major functions of the City are compared
with both FY1999 and Six-Month 1999 in the following table:
Table 2: Expenditure by Major Function for all Governmental Fund Types
Dollar incraaae Percent increase Dollar increase Percent Increase
Decrease) (Decrease) ( Decreau) (Decrease)
Percent Erom from froaa from
M 'or Function Amount of Total Six -Month 1999 Sin -Month 1999 FY1999 FY1999
General Government $1,601.677 19.9% $735,380 84.9% $32,405 2.0%
Public Safety $2,483.209 30.6%
public Works $981.027 12.2'
Parks and Recreation $715,409 8.9%
Library
Public Service
Debt Service
Capital outlay
Totals:
01.865 3.1%
6.614 0.1%
840.997 10.5%
1.367.031
490.568
317,268
134.309
2x,750)
270,939
124.7%
100.0%
79.7%
114.3%
96.9%
47.5%
487.887
117.491
112,168
16,983
37,116)
48.730
24.7%
13.6%
18.5%
7.2%
84.8%
6.1%
1,176,757 14.6% $692,769 - - _143.1% - $206,649
r --
21.3%
UV
t
1
I
IF_
L
The distribution of general government expenditures by function is represented in the following
graph:
Chart 3: General Government Expenditures by Major Function
General, Special Revenue, Capital Project, and Debt Service Funds
8,037,M
Publie Satety 30.6%
Geni Gov't 19.9%
4 t", Debt Servks 10 %
Public Works 12.2%"
Ay y.:
Parks i Rec. ! capital rOuday 14.6%
Library 3.1% Public Service 0.1%
Compared with FY1999, overall general government expenditures in FY2000 -- which includes the
General, Special Revenue, Debt Service and Capital Projects Funds -- rose 13.9 %, or $985,278. The
largest dollar changes came in the areas of public safety, rising $487,967 (24.7 %), and capital outlay,
rising $206,649 (21.3 %). The increase in expenditures for public safety can be attributed primarily
to the flood mitigation capital project and other public safety capital projects, which saw a $432,267
increase. Within the General Fund, public safety expenditures for police and fire rose $55,700 or
2.9 %. The increase in expenditures for capital outlay is entirely related to an increase in the level of
spending for capital projects. In both of these categories then, the increase is largely attributed to
additional grant funds available to improve capital infrastructure, and to mitigate flooding.
Compared with Six -Month 1999, overall general government expenditures in FY2000 rose 89.8% or
3,803,474. If Six -Month 1999 expenditures had been exactly half of a typical fiscal year, we would
have expected FY2000 expenditures to be 100% more, or double, that of Six -Month 1999. For the
most part, the reduction (where expenditures are 89.8% rather than 100 % higher than the six -month
period) in expenditures is due to the timing of expenditures for capital outlay, falling outside of the
six -month period.
General Fund Expenditures
Total expenditures in the General Fund rose $357,735 or 6.6% from FY1999, not including transfers
to other funds. Compared with Six -Month 1999, expenditures were up $2,664,983 or 87.2%.
Expenditures for the General Fund were higher in FY2000 than FY1999, in all categories, as follows:
general government up $50,105 or 3.2 %; public safety up $55,700 or 2.9%; public works up $117,491
or 13.6 %; parks and recreation up $114,205 or 19.1 %u; library up $17,828 or 7.8 %; and debt service up
2,406 or 1.1%x.
Despite the rise in expenditures from the previous year, General Fund departments underspent
budget appropriations by $355,844. Expenditures for general government came in $160,955 under
budget, with $87,102 (54%) of the savings attributed to personnel turnover. Public safety came in
M Op
personnel shortunderbudgetby $116,004, with $84,193 of the savings attributed to ag es in the police
and jail departments alone. Overall, General Fund expenditures for the year totaled $5,719,356.
Genersl Fund ftlance '
The General Fund year -end fund balance totaled $4 697,463, representing an increase of $1,084,201 '
from the prior year's fund balance of $3,613,262. This 30% increase in fund balance improves the
City's ability to meet unforeseen needs and emergencies, as well as to continue to provide quality
services to the community. This increase in fund balance resulted from revenues exceeding budget '
by $1,410,743, and expenditures coming in under budget by $355,844. These surpluses were offset
by net transfers to other funds of approximately $1.1 million.
In addition to improving the City's fund balance position, the amount set aside for insurance reserves
to protect against future insurance claims and to reduce insurance deductibles -- increased by
95,360, from $335,778 to $431,138. The amount that is generally considered to be available for '
future appropriations is known as "undesignated fund balance ". During FY2000, undesigaated fund
balance increased by $1,545,021 or 151.7%, from $1,018,331 to $2,563,352.
Debt AdMinistration '
At December 31, 2000, the City's outstanding principal on all bonded debt totals $17,935,000 (see '
pages 25 and 26). The City maintains two forms of bonded debt. The first type is the general
obligation bond which is backed by the frill faith and credit of the City. The second type is the
revenue bond which is backed by the revenues of a particular business -like or Enterprise Fund. '
Of the outstanding bonded debt carried on the books, $11,935,000 is in the form of general obligation
bonds. Of this total, $3,421,722 is recorded in the Enterprise Funds which benefit from the proceeds '
of said bonds, and include: 1980 electric bonds; 1993 refunding of 1986 electric bonds; and the 1987
Seward Marine Industrial Center bonds. The revenues from Enterprise Funds are the intended
source of repayment for these bonds. The 1980 electric bonds will be retired in January, 2001. The '
remaining $8,513,278 in general obligation bonds include bonds for construction of the Community
Center in 1987, the 1990 street and sidewalk issue, and construction of a hospital facility in 1996.
These bonds are intended to be repaid through general tax revenues.
The remaining $6,000,000 in City bonds are revenue bonds, including $3,000,000 in harbor revenue
bonds issued in December, 2000, for the replacement of floats and fish cleaning stations in the small '
boat harbor; and $3,000,000 remaining on the 1995 bonds issued to construct the electric transmission
line from Mile 3 to Mile 24 of the Seward Highway. The source of repayment for the electric bonds
is the Electric Enterprise Fund, and these bonds are slated to be paid off in June, 2015. The source '
of repayment for the harbor bonds is the newly implemented passenger transit fee, a $1.50 fee per
passenger carried on a harbor charter, fishing trip, or bay tour. The harbor bonds are slated to be
paid off in October, 2021.
The State of Alaska Department of Environmental Conservation (DEC) 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
presented in the Water and Sewer Enterprise Fund and the balances due at December 31, 2000 are
695,483 and $18,361, respectively. Annual installments are made until November, 2013 for the '
Lowell Point Sewage Lagoon loan and July, 2014 for the Dairy Hill loan. In December, 2000, the DEC
revised the terms of these two loans, reducing the interest rates from 4.759' and 4.31%, to 2.5%.
XVI '
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.
ICoAManaKeineut
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. Earnings on these investments are
allocated monthly to the funds supplying the resources for investment.
Total City cash and investments at December 31, 2000 were as follows:
Cash on hand $ 2,000
Deposits (333,087)
Investments 17.698,810
Total City cash and investments $17.367.723
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 December 31, 2000, was $1,044,086,
an increase of $429,924 from the prior year, resulting from higher cash balances available for
investment.
EntejRrjN 02trgioNfi
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. In Six -Month 1999, a new
Enterprise Fund was created by separating the Seward Marine Industrial Center out of the Harbor
Enterprise Fund, creating two separate Enterprise Funds.
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.
Operating revenues in the proprietary funds — including enterprise funds and internal service funds --
increased $178,804 (1.7%) from FY1999. Compared with Sian -Month 1999, operating revenues
increased $5,031,997 or 96.8%. Operating revenues increased $106,134 (7.8%) in the Water and
Sewer Enterprise Fund compared with FY 1999, and $30,930 (34.1%) in the Parking Enterprise Fund,
XVIi
r
I
while the Electric Enterprise Fund witnessed a 1% reduction in operating revenues of $71,104. It
should be noted that FY2000 was the first full year in which the City of Seward collected parking fees ,
without assistance from a private contractor. This year is expected to serve as a baseline for
estimating the level of future parking lot revenues. Since the FY1999 financial statements present
the Harbor Enterprise Fund and the SMIC Enterprise Fund as one fund, it is not possible to compare
the performance of these individual funds across the two years.
Operating expenses in the proprietary funds increased $615,112 (9.1%) compared with FY1999 (and
3,859,043 or 111.70% from Six -Month 1999). The Electric Enterprise Fund saw expenses increase
by $514,633 (12.3%) over FY1999. The majority of the increase in Electric operating expenses is the
increased power costs resulting from higher costs of fuel. The cost of power rose nearly $368,000 from '
FY1999, representing an increase of 15.8%. The Water and Sewer Enterprise Fund operating
expenses increased by $219,931(27.O%) compared with FY1999 ($557,157 or 117.4% compared with
Six-Month 1999). The Parking Enterprise Fund saw a slight reduction in operating expenses of
1,221 (1.496) compared with the full previous fiscal year of FY1999, but an increase of $52,482
156.6%) when compared with Six -Month 1999. Once again, it is not possible to compare the
performance of the Harbor and SMIC Enterprise Funds across full fiscal years, since FY2000 '
represents the first full year in which the two funds appeared individually in the financial statements.
Risk Management
The City is a member of the Alaska Municipal League Joint Insurance Association (JIA), a
government insurance pool established by the Alaska Municipal League. The JIA provides the City '
coverage for property, including building and contents, automobiles, mobile equipment and data
processing equipment; casualty, including general liability, public officials and employees liability,
law enforcement professional liability, auto liability and employee benefit liability; workers'
compensation, including employers liability; commercial blanket bond; and time element. The City
also maintains special marine insurance coverages and boiler and machinery insurance coverages
with insurance companies placed through JIA. The JIA provides loss control services and conducts
periodic inspections to ensure safe operations. The City maintains a safety committee charged with
reviewing and recommending 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). At December 31, 2000, the amount of fund
balance designated for insurance reserves is $431,138, an increase of $95,360 from the prior year.
The LELP was established by the JIA as a separate insurance pool for law enforcement (police and '
jail) professional liability coverage.
IndMndent Audit
I
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 FY2000. The auditor's report on the general purpose financial
statements is included in the financial section of this report, and the reports related to the single
audit is found in the single audit section. The combining, individual fund and account group financial
statements and schedules are presented for the purpose of additional analysis.
XVIII
Financial Report g 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 period ended December 31,1599. This
is the seventh consecutive reporting period for which 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.
Acknowledornts
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. 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.
tRespectfully submitted,
W. Scott J Kristin M. Erchinger
City Manager Finance Director
1
I .
0
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
December 31, 1999
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting,
4,tllgf(9 :'tRS v '
x \ (,ppR64A[pA g
y' S ' y:. 'ate
Fx rtit it"e Dir ctar
W
Mayor
Vice Mayor
Council Member
Council Member
Council Member
Council Member
Council Member
City Manager
Finance Director
Mgr. Engineering and Utilities
Harbormaster
Chief of Police
Fire Chief
Parks & Recreation Director
Library Director
City Clerk
City Attorney
1 MY OF SEWARD
LIST OF PRINCIPAL OFFICIALS
1
Council Memo
Edgar Blatchford
1
Charles D. Brossow
Stu Clark
Jerry Icing
Vanta Shafer
Nathan Orr
Michael Calhoon
1
Adminifitration
W. Scott Janke
Kristin M. Erchinger
David Calvert
James Beckham
Michael Chapman
1 David Squires
Karin J. Sturdy
Patty Linville
1
City Clerk Department
Patrick Reilly
A'gr ney
1 Brad Meyen of
Wohlforth, Vassar, Johnson
Brecht
1
1
1
XXI
Mayor
Vice Mayor
Council Member
Council Member
Council Member
Council Member
Council Member
City Manager
Finance Director
Mgr. Engineering and Utilities
Harbormaster
Chief of Police
Fire Chief
Parks & Recreation Director
Library Director
City Clerk
City Attorney
zgiII
CITY OF sEWARD
Organizational Chart
Citizens
Mayor &
Council
Boards & City Manager City Clerk City
Commissions Attorney
Planning &
Port &
Commerce
Historic
Pr i n
Police Finance Engineering & Library
Utilities
Harbor Fire Community
Development
Parks &
Recreation
zgiII
PART II
FINANCIAL SECTION
1
1
1
1
1
1
1
1
Independent Auditor's Report
General Purpose Financial Statements
Combining, Individual Fund and
Account Group Financial Statements and Schedules
1
1
1
1
1
1
1
1
MIKUNDA COTTRELL ESL CO.
A Professional Corporation
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
3601 "C" Street, Suite 600 a Anchorage, Alaska 99503
907) 278 -8878, Pax (907) 278 -5779
www.mcc- cpa.com
1
Independent Auditor's Report
Honorable Mayor and City Council
City of Seward, Alaska
We have audited the accompanying general purpose financial statements of City of Seward, Alaska,
as of and for the year ended December 31, 2000. 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.
tWe 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 December 31, 2000 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 March
23, 2001 on our consideration of City of Seward's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That
report is an integral part of an audit performed in accordance with Government Auditing Standards
and should be read in conjunction with this report in considering the results of our audit.
1
McGLADRgY NETWORK
An v d.pena.rxh o,.d Member
wafdwide S rr,oeeThrough RSM Inl rrwponsl
Offices: Anchorage, Bethel & Kenai
Honorable Mayor and City Council '
City of Seward, Alaska
Our audit was performed for the purpose of forming an opinion on the general purpose financial '
statements of City of Seward, Alaska taken as a whole. The accompanying Schedule of
Expenditures of Federal Awards, Schedule of State Financial Assistance, and 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. The Schedule of Expenditures of Federal
Awards is required by U.S. Office of Management and Budget Circular A -133, Audits of States, t
Local Governments, and Non-Profit Organizations and the Schedule of State Financial
Assistance is required by the State of Alaska Office of Management and Budget, State of Alaska '
Audit Guide and Compliance Supplement for State Single Audits. 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 presented, in all material respects, in relation to the
general purpose financial statements taken as a whole.
The other data included in the "statistical section" in the table of contents, has not been audited '
by us and accordingly, we express no opinion on such data.
March 23, 2001
LI
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.
L
z
a
a
1 GENERAL PURPOSE FINANCIAL STATEMENTS — OVERVIEW
These financial statements provide a summary overview of the financial position of all funds and
account groups and the operating results of all funds. The following statements are included in this
section:
Combined Balance Sheet — All Fund Types and Account Groups -- reports assets,
other debits, liabilities, fund equity and other credits for all funds and account
groups.
Combined Statement of Revenues, Expenditures and Changes in Fund Balances —
All Governmental Fund Types -- reports results of operations of the General Fund,
Special Revenue Funds, Debt Service Fund and Capital Project Funds.
Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and
Actual — General Fund -- compares the actual results of operations with the budget
for the General Fund.
Combined Statement of Revenues, Expenses and Changes in Retained Earnings —
All Proprietary Fund Types -- reports results of operations of the Enterprise Funds
and Internal Service Fund.
Combined Statement of Cash Flows — All Proprietary Fund Types -- reports the
sources and changes in cash balances of the Enterprise Funds and Internal Service
Fund.
Notes to General Purpose Financial Statements.
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CITY OF SEWARD
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental Fund Types
Year Ended December 31, 2000
with Comparative Totals for Six -Month Period Ended December 31, 1999
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
Public service
Debt service
Capital outlay
Total expenditures
Exhibit B -1 1
Totals
Memorandum Onl •)
Special Debt Capital (Six Months)
General Revenue Service Pr, oiect 2000 1999
3,953,139 - 3,953,139 2,255,326
139,871 - 139,871 73,715
984,231 201,032 482,103 1,667,366 928,786
2,179,832 - 2,179,832 925,721
14,786 - 14,786 10,748
438,005 - 25,352 20,732 484,089 134,087
247,461 315,006 34,197 596,664 151,198
7,957,325 516,038 25,352 537,032 9,035,747 4,479,581
1,592,475 9,202 1,601,677 866,317
1,970,643 492,566 2,463,209 1,096,178
981,027 981,027 490,459
711,721 3,688 715,409 398,151
245,710 6,155 251,865 117,556
6,614 6,614 211,364
217,780 623,217 - 840,997 570,058
1,176,757 1,176,757 483,998
5,719,356 518,225 623,217 1,176,757 8,037,555 4,234,081
Excess of revenues
over (under) expenditures 2,237,969 2,187) (597,865) (639,725) 998,192 245,500
Other financing sources (uses): -
Operating transfers from other funds 179,846 23,828 732,945 40,259
1518,706)
1,189,109
Operating transfers to other funds 1,328,804) 18902 ) 984,140)
Net other financing sources (uses) 1,148,958) 23,828 732,945 363,738 28,447) 204,969
Excess of revenues and other
financing sources over (under)
expenditures and other uses
Beginning fund balances
Residual equity transfers to other funds
Ending fund balances
1,089,011 21,641 135,080 (275,987) 969,745 450,469
3,613,262 25,705 429,829 918,118 4,986,914 4,867,973
4,810} - - - (4,810) (331,528)
S 4,697,463 47,346 564,909 642,131 5,951,849 4,9 86,914
See accompanying notes to general purpose financial statements.
6
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Exhibit C -1
CITY OF SEWARD
Statement of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual - General Fund
Year Ended December 31, 2000
with Comparative Totals for Six-Month Period Ended December 31, 1999
2000
Variance Six Months)
Favorable 1999
Bud>et Actual Unfavorable) Actual
Revenues:
Taxes 3,685,247 3,953,139 267,892 2,255,326
Licenses and permits 126,000 139,871 13,871 73,715
Intergovernmental 862,972 954,231 121,259 438,185
Charges for services 1,583,220 2,179,832 596,612 925,721
Fines and bails 15,000 14,786 214) 10,748
Investment income 163,500 438,005 274,505 104,719
Miscellaneous 110,643 247,461 136,818 41,956
Total revenues 6,546,582 7,957,325 1,410,743 3,850,370
Expenditures:
Current:
General government 1,753,430 1,592,475 160,955 864,468
Public safety 2,086,647 1,970,643 116,004 1,029,356
Public works 1,012,155 981,027 31,128 490,459
Parks and recreation 756,784 711,721 45,063 386,599
Library 248,404 245,710 2,694 117,411
Debt service 217,780 217,780 166,080
Total expenditures 6,075,200 5,719,356 355,844 3,054,373
Excess over expenditures 471,382 2,237,969 1,766,587 795,997ofrevenues
Other financing sources (uses):
Operating transfers from other funds 179,846 179,846 455,460
Operating transfers to other funds 1,328,804) 1,328,804) 884,140)
Net other financing sources (uses) 1,148,958) 1,148,958) 428,680)
Excess of revenues and other financing
sources over (under) expenditures and
other uses 677,576) 1,089,011 1,766,587 367,317
Beginning fund balance 3,613,262 3,577,473
Residual equity transfers to other funds 4,810) 331,528)
Ending fund balance 4,697,463 3,613,262
See accompanying notes to general purpose financial statements.
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8
CITY OF SEWARD
Combined Statement of Revenues. Expenses
and Changes in Retained Eunings -
Ali Proprietary Fund Types
Year Ended December 31, 2000
with Comparative Totals for Six -Month Period Ended December 31, 1999
Operating revenues
Operating expenses
Earnings from operations before depreciation
Depreciation
Earnings (loss) from operations
Nonoperating revenues (expenses):
Gain (loss) on disposal of property and equipment
Investment income
Interest expense
Other revenues
Net nonoperating revenues (expenses)
Earnings (loss) before operating transfers
Operating transfers from other funds
Operating transfers to other funds
Net operating transfers
Net earnings (loss)
Increase in retained earnings for corrections to
contributed capital and accumulated depreciation
Amortization of contributed capital
Increase in retained earnings
Beginning retained earnings
Residual equity transfers to other funds
Ending retained earnings
See accompanying notes to general purpose financial statements.
9
492,963) 92,175 (400,788) (89,459)
111,593
Totals
9,733
2,578,795
Memorandum Only)
2588,524
Internal
2,197,425
Six Months)
Enter Scrvice 2M im
10,011,875 213,983 10,225,858 5,193.861
7,311.040 7,311,040 3,451,997
14,802,131 12,502,802
2,700,835 213,983 2,914,818 1,741,864
3,286,142 131,739 3,417,881 1,643,367
585,307) 82,244 503,063) 98.497
301 301 10,617)
537.519 22,478 559,997 303.837
502,821) 12.547) 515,368) 276,308)
28,898 28.898 101
63,897 9,931 73.828 17,013
521,410) 92,175 429,235) 115,510
285,133 285,133 279,986
256,686) 256,686) 484,955)
28.447 28,447 204.969)
492,963) 92,175 (400,788) (89,459)
111,593 111,593 9,733
2,578,795 9,729 2588,524 1,240,302
2,197,425 101,904 2,299,329 1,160,576
12,273,827 228,975 12,502,802 11,769,197
14,471,252 330.879 14,802,131 12,502,802
CITY OF SEWARD
Combined Statement of Cash Flows -
All Proprietary Fund Types
Year Ended December 31, 2000
with Comparative Totals for Six -Month Period Ended December 31, 1999
Cash flows from operating activities:
Earnings from operations
Adjustments to reconcile earnings from operations
to net cash flows from operating activities:
Depreciation
Other nonoperating revenues (expenses)
Increase (decrease) in allowance for doubtful receivables
increase) decrease in assets:
Receivables
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 from other funds
Operating transfers to other funds
Operating grants received
Residual equity transfers to other funds
Net cash flows from noncapital financing activities
10
Exhibit E -1
Totals
Memorandum Only)
Internal Six Months)
Enterprise Service 2000 1999
S (585,307) 82,244 503,063) 98,497
3,186,142 131,739 3,417,881 1,643,367
3,509 3,509 3
8,721) 8,721) 13,533
21,310 21,310 186,615
37,319 37,319 8,549
743,517 743,517 26,200)
6,777) 6,777) 41,366)
6,940) 6,940) 1,158)
15,811) 15,811) 5,743
20,688) 20,688) 26,025)
33,536) 33,536) 14,610
3,662) 3,662) 19,665
3,410,355 213,983 3,624,338 1,895,833
285,133 285,133 484,955)
256,686) 256,686) 279,986
24,800 24,800
50,797)
53,247 53,247 255,766)
I
CITY OF SEWARD
Combined Statement of Cash Flows -
All Proprietary Fund Types, continued
Cash flows from capital and related financing activities:
Decrease in due from other funds
Proceeds from issuance of long -term debt
Principal payments on long -term debt
Interest payments on long -term debt
Cash held by fiscal agent
Acquisition of property, plant and equipment
Collections on special assessments
Proceeds from sale of property and equipment
Contributed capital
Decrease in deferred revenue
Penalties and interest on special assessments
Net cash flows from capital
and related financing activities
Cash flows from investing activities -
investment income received
Net increase in cash and investments
Beginning cash and investments
Ending cash and investments
Reconciliation of cash and investments to balance sheet:
Cash and investments:
Current assets
Restricted assets
Noncash capital and related financing activities:
Increase in contributed capital and deferred
assessments receivable
Corrections and reclassifications - increase (decrease) to:
Accumulated depreciation
Contributed capital
Accumulated amortization
Retained eamings
See accompanying notes to general purpose financial statements.
11
Exhibit E -1, continued
Totals
Memorandum Only)
Internal (Six Months)
Enterori Service 2000 1999
62,113 2, 77,271
46,713
3,008,366
175,402 48,220
3,008,366
941,512) 93,323) 1,034,835) 705,207)
427,682) 13,380) 441,062) 274,455)
500 500 155,500)
5,910,505) 4,810) 5,915,315) 476,374)
44,209 44,209 2,632
301 301
4,192,165 4,810 4,196,975 531,519
3,237,164) 3,237,164) 6,681)
589 589 98
3.270,73D (106,703 3,377 436 1,037,255
537,519 22,478 559,997 303,837
730,388 129,758 860,146 906,649
10,459,939 327,222 10,787,161 9,880,512
S 11,197 4456,980 11,647,307 10,787,161
S 10,634,604 456,980
555,723 -
S 11,190,327 456,980
62,113 _ 62,113 2, 77,271
765,978 765,978 -
S 175,402) 175,402 48,220
702,169 702,169 -
111,593 111,593
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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.
ICITY OF SEWARD
Notes to General Purpose Financial Statements
December 31, 2000
1) Sum ma ry 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 Enti
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 December 31, 2000, 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 Accountin
The accounts of the City are organized on the basis of funds and account groups, each of
which is considered a separate accounting entity. The operations of each fund are
accounted for with a separate set of self - balancing accounts that comprise its assets,
liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Government
resources are allocated to and accounted for in individual funds based upon the purpose for
which they are to be spent and the means by which spending activities are controlled. The
various funds are grouped, in the financial statements in this report as follows:
Governmental Fund 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.
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 the acquisition
or construction of major capital facilities and public improvements (other than those
financed by proprietary funds).
Proprietn Fund T es
Enterprise Funds are used to account for operations (a) that are financed and operated in a
manner similar to private business enterprises where the intent of the governing body is
that the cost (expenses, including depreciation) of providing goods or services to the
general public on a continuing basis be financed or recovered primarily through user
charges; or (b) where the governing body has decided that periodic determination of
revenues earned, expenses incurred, and/or net income is appropriate for capital
maintenance, public policy, management control, accountability, or other purposes.
The Internal Service Fund is used to account for the financing of goods or services provided
by one department or agency to other departments or agencies of the City on a cost -
reimbursement basis. The City has one internal service fund which accounts for the
acquisition of vehicles and mobile equipment. which are then leased to the various
departments of the City.
Fiduciary Fund Types
Agency Funds are used to account for assets held by the City in a trustee capacity or as an
agent for individuals, private organizations, other governments, and/or other funds. Agency
Funds are custodial in nature (assets equal liabilities) and do not involve measurement of
results of operations.
Fixed Assets and Long-Term Liabilities
The accounting and reporting treatment applied to the fixed assets and long -term liabilities
associated with a fund are determined by its measurement focus. All governmental funds
are accounted for on a spending or "financial flow" measurement focus. This means that
only current assets and current liabilities are generally included in their balance sheets.
Their reported fund balance (net current assets) is considered a measure of "available
spendable resources." Governmental fund operating statements present increases
revenues and other financing sources) and decreases (expenditures and other uses) in net
current assets. Accordingly, they are said to present a summary of sources and uses of
available spendable resources" during a period. Fixed assets used in governmental fund
type operations (general fixed assets) are accounted for in the General Fixed Assets
14
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ICITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Summary of Significant Accounting Policies continued
Fixed Assets and Long-Term Liabilities continued
Account Group, rather than in governmental funds. Public domain ( "infrastructure ")
general fixed assets consisting of certain improvements other than buildings, including
roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting
systems, are not capitalized along with other general fixed assets. No depreciation has
been provided on general fixed assets.
All fixed assets are valued at historical cost or estimated historical cost if actual lustoncal 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 forlintheGeneralLong -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 concemed only with the measurement of
financial position. They are i,ot involved with measurement of results of operations.
All proprietary funds are accounted for on a cost of services or "capital maintenance"
measurement focus. This means that all assets and all liabilities (whether current or
noncurrent) associated with their activity are included on their balance sheets. Their
reported fund equity (net total assets) is segregated into contributed capital and retained
earnings components. Proprietary fund type operating statements present increases
revenues) and decreases (expenses) in net total assets.
Portions of the property, plant and equipment of the Enterprise Funds have been constructed
through the use of contributed capital from State and federal agencies. Depreciation on all
assets has been charged against operations. However, depreciation applicable to the assets
acquired with contributed capital does not reduce earnings or increase losses transferred to
retained earnings. Instead it is included in accumulated amortization which offsets
contributed capital in the fund equity section of the Enterprise Fund balance sheets.
Depreciation for all plant and equipment in the proprietary funds is computed by use of the
straight -line method over the estimated economic lives of the assets.
15
CITY OF SEWMW
Notes to General Purpose Financial Statements, continued '
Summary of Si ni icant Accounting Policies, continued
Fixed Assets and Long-Term Liabilities, continued
Estimated lives of major asset categories are as follows:
Life in ye ars
Buildings 10 -50
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
on the accrual basis with the exception of principal and interest on generalrecognized
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 Treasury IAcentraltreasuryisusedtoaccountfortheCity's cash and investments to maximize
interest income. Investments are stated at fair value. Investment earnings are allocated
among the funds based on their respective cash balances. 1
16
1 CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Summary of Significant Accounting Policit.$2 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.
Invento
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 intergovemmental 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 trill 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 l and are payable on August 15; tax bills for the second -half of the taxes are mailed
by October 1 and are payable on November 15. City property tax revenues are recognized
in the fiscal year in which they are collectible and available (collected within sixty days
after year-end) to finance expenditures of the fiscal year.
At December 31, the delinquent real and personal taxes not currently available are reflected
1 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.
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CITY OF SEWARD
Notes to General Purpose Financial Statements, continued '
Surnmag of Significant Accounting Policies, condnued
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
The of accrued leave recorded aspresentedintherelatedfundbalancesheet. amount
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 portionoftheliabilityisrecordedinthegovernmentalfundtypes, with the remainder reported in
the General Long -Term Debt Account Group.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments forexpendituresarerecordedinordertoreservethatportionoftheapplicableappropriation, is
formal budgetary integration in the General Fund during theemployedasanextensionof
However, it is the City's policy to stop issuing purchase orders in early December. year.
Outstanding purchase orders, if any, at December 31, are cancelled and new ones are
issued in the subsequent year. As a result, there are no outstanding encumbrances at
December 31, 2000.
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' RetirementSystem (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 six months ended December 31, 1999
financial statements to make them comparable with the year ended December 31, 2000
presentation.
Comparative Data
Comparative total data for the prior six -month period 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.
1
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ICITY OF SEWARD
INotes to General Purpose Financial Statements, continued
Sum_ mark of Significant Accounting Policies continued
Change in Fiscal Year
On October 6, 1998, the voters of Seward approved changing the City's year -end from a
fiscal period ending on June 30 to December 31. In accordance with this change, the
statements of revenues, expenditures (expenses) and changes in fund balance (retained
earnings) and the statements of cash flows for the period ended December 31, 1999 are for
six months whereas the current year statements cover a full fiscal year (twelve months).
2) Stewardship, Compliance and Accountabibq
Budgetary Accounting
An operating budget is adopted each fiscal year for the General Fund on the same modifiedaccrualbasisusedtoreflectactualrevenuesandexpenditures. 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 Appropriations
General Fund expenditures $ 5 ,964,549 $ 6,075,200
General Fund transfers out 1,156,195 1,333,614
The following funds had a deficit in fund balance/retained earnings at December 31, 2000:
Gateway Subdivision Capital Project Fund $ (10,859)
Seward Marine Industrial Center Enterprise Fund (519,881)
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1
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued '
3) Cash and Investments 1
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 Iinvestments" or included in "due to other funds."
Deposits '
At December 31, 2000, the carrying amount of the City's deposits was ($333,087) and the
bank balances totaled $157,410. 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, certificates of deposit insured by federal depository insurance or secured by '
eligible collateral held by a third party in the City's name, and investments through the
Alaska Municipal League Investment Pool.
investments are carried at fair value and are categorized below to give an indication of the '
level of credit risk assumed by the City at year-end.
Category 1 , ry
Insured or registered, or securities held by the City or its agent in the City's name. ,
Category 2
Uninsured and unregistered, with securities held by the counterparty's trust department
or agent in the City's name. '
Category 3
Uninsured and unregistered, with securities held by the counterparty, or by its trust ,
department or agent, but not in the City's name.
Cateaory
1 -- - - - 2 3 Total
Overnight repurchase
agreement $ - 3,289,340 - 3,289,340 '
U.S. government securities 748,518 13,660,952 - 143409,470
Restricted Cash
The City also maintains electric and harbor bond redemption and reserve accounts as required '
by bond covenants. The balance in these accounts at December 31, 2000, which totaled
555,723, is included in investments.
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CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Cash and investments continued
Investments continued
A reconciliation -of cash and investments as shown on the combined balance sheet follows:
Cash on hand
Carrying amount of deposits
Carrying amount of investments
Cash and investments as shown on the
combined balance sheet:
Cash and investments
Restricted assets - cash and investments
4) Fixed Assets
A summary of changes in general fixed assets follows:
Land and land rights
Buildings
Balance at
Janu oLL 2000
3,898,515
61,406,904
2,004
333,087)
17,698,810
17 67 7
16,812,000
5 55,723
UXLLM
Balance
Additions Deletions December 31 2000
155,090 - 4,053,605
2,501 (10,091,276) 51,318,129
Improvements o er _ 10,883,191
than buildings 10,604,013 279,178
Equipment 2 9_ 271 _ 271.500 47 680 3 1
Fixed assets in service 78,837,103 708,269 (10,138,956) 69,406,416
Construction in progress 490.702 1,121,346 (279,870) 1,332,178
ZWILUI
As a result of a favorable settlement from a lawsuit involving the original construction of the
Alaska Sealife Center, the Center was awarded $10,091,276. The award was based on an
assertion of substandard construction; accordingly, the proceeds reduced the carrying value
of the building.
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Fixed Assets, continued
A summary of proprietary fund type property, plant and equipment at December 31, 2000
follows:
Construction in progress 5,858.192 -
Property, plant and equipment, net $ 77. 94.589 523 769
5) Interfund Receivables and Pa ables
Interfund receivable and payablc balances at December 31, 2000, are as follows:
Interfund Interfund
Receivables Payables
General Fund $ 212,333 -
Avalanche 2000 Special Revenue Fund - 38,724
Capital Project Funds:
Flood Mitigation - 164,697
Gateway Subdivision 8.912
Totals $
22
Internal
Enterprise Service
Funds Fund
Land and land rights 15,754,269
Buildings 4,650,397
improvements other than buildings 37,780,136
Equipment 42,052,517 1,277,855
Docks and floats 16. .3442,503
116,579,822 1,277,855
Less accumulated depreciation X45,143,425) 75( 4,086)
71,436,397 523,769
Construction in progress 5,858.192 -
Property, plant and equipment, net $ 77. 94.589 523 769
5) Interfund Receivables and Pa ables
Interfund receivable and payablc balances at December 31, 2000, are as follows:
Interfund Interfund
Receivables Payables
General Fund $ 212,333 -
Avalanche 2000 Special Revenue Fund - 38,724
Capital Project Funds:
Flood Mitigation - 164,697
Gateway Subdivision 8.912
Totals $
22
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
I
6) Operating Transfers
A summary of operating transfers between funds for the year ended December 31, 2000
follows:
From To
I Other Other
Funds Funds
General Fund:
Special Revenue Funds: 22,000
Computer Network/Web Page 1,828
DARE Program 732,945
Debt Service Fund
Capital Project Funds: 151,062
Capital Acquisition 81,306
Street Improvements 40,000
Firehall Roof Repair 14,530
City Hall Facilities and Equipment
Enterprise Funds:
132,460
Harbor
35,000
Electric
12386 285133
SMiC
Total General Fund 1 79 846 1 312, 804
Special Revenue Funds from General Fund:
Computer Network/Web Page 22,000
DARE Program
X828
Total Special Revenue Funds 23.828
Debt Service Fund from General Fund 212,945
Capital Project Funds from General Fund:
capital Acquisition
151,062
81,306
Street bWovemets
40,000
Firehall Roof Repair
City Hall Facilities and Equipment
14,530
286.898
Capital Acquisition Fund to/from other funds: 189,902
Capital Acquisition
189,902
Street Improvements
7840
Water and Sewer Enterprise Fund
55640 189902
Total Capital Project Funds
1
23
7) Residual Eau& Transfers
ended December 31, 2000 ' A summary of residual equity transfers between funds for the year
follows: '
From To
Other Other
Funds Funds '
General Fund to Motor Pool Internal Service Fund $ 4,810
4 - Motor Pool Internal Service Fund from General Fund '
Total residual equity transfers $
The residual equity transfer from the General Fund was recorded in contributed capital of the
Motor Pool Internal Service Fund.
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
190,016 at December 31, 2000) is recorded in the General Long -Term Debt Account
Group. The City's policy is to make no distinction between vacation and sick leave as
accrued leave includes both types.
A summary of the change in the long -term portion of accrued leave follows: ,
Balance at January 1, 2000 $ 174,014 '
Increase
16,002
Balance at December 31, 2000 $ '
24 ,
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Operating Transfers continued ToFrom
Other Other
Funds Funds
Enterprise Funds to/from General Fund:
285,133 12,386
Harb orHarbor
132,460
Electric 3 5004
285,133
Water and Sewer Enterprise Fund to
179,846
76,840CapitalAcquisitionCapitalProjectFund
Total operating transfers 1
7) Residual Eau& Transfers
ended December 31, 2000 ' A summary of residual equity transfers between funds for the year
follows: '
From To
Other Other
Funds Funds '
General Fund to Motor Pool Internal Service Fund $ 4,810
4 - Motor Pool Internal Service Fund from General Fund '
Total residual equity transfers $
The residual equity transfer from the General Fund was recorded in contributed capital of the
Motor Pool Internal Service Fund.
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
190,016 at December 31, 2000) is recorded in the General Long -Term Debt Account
Group. The City's policy is to make no distinction between vacation and sick leave as
accrued leave includes both types.
A summary of the change in the long -term portion of accrued leave follows: ,
Balance at January 1, 2000 $ 174,014 '
Increase
16,002
Balance at December 31, 2000 $ '
24 ,
I
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
9) Long -Terre Debt
General Obligation Bonds
The City has issued general obligation bonds to provide funds for the acquisition and
construction of major capital facilities. General obligation bonds have been issued for both
general government and proprietary activities. These bonds are reported in the Enterprise
Funds if they are expected to be repaid from proprietary revenues.
General obligation bonds are direct obligations and pledge the full faith and credit of the
government. General obligation bonds at December 31, 2000 are as follows:
Interest
Rates Balance
1 ,700,000 1 980 electric serial
bonds, due in one remaining
installment on January 1, 2001 7% $ 155,000
3,990,000 1993 refunding electric
serial bonds, due in six -month installments
of $475,000 to $560,000 through
October 1, 2004 4.75% to 5.35% 2,085,000
2,030,000 1993 refunding harbor/
general government serial bonds for
the 1987 bonds, Series A, due in
six -month installments of $170,000 to
240,000 through December 1, 2007 4.75% to 5.65% 1,435,000
1
1,465,000 1993 refunding general
government serial bonds for the 1990
bonds, Series A, due in six -month
installments of $95,000 to $165,000
through December 1, 2011 4.75% to 5.8% 1,375,000
7,500,000 1996 hospital serial bonds,
due in six -month installments of $265,000
to $825,000 through October 1, 2013 4.75% to 6.75% 6,885,000
Total general obligation bonds $ B'21=
1
25
CITY OF SEWARD ,
Notes to General Purpose Financial Statements, continued '
Revenue bonds
6,000,000
17,7002125
General obligation bond and revenue bond debt service requirements to maturity are as '
follows:
Long-Term Debt continuedRevenuebondprincipalandinterest are payable from resources generated by a particular
General Long -Term
government operation such as a public utility. In December 2000, the City issued
3,000,000 of harbor revenue bonds to assist with harbor improvements. Revenue
Year Ending
bonds outstanding at December 31, 2000 are as follows:
Funds
Interest
Rates Balance
3,225,000 1995 Electric revenue bonds,
Pri,ncipaal
due in annual installments of $130,000
to $290,000, plus interest through June 1, 2015 4.85% to 7.35% $ 3,000,000
Princi al Interest
13,000,000 2000 Harbor revenue bonds,
900,000
due in annual installments of $90,000
390,000
to $235,000, plus interest through October 1, 2021 4.85% to 5.5% 3,000,000
Total revenue bonds $ 6,000,000
SheetAreconciliationofbondspayabletotheamountreportedontheCombinedBalance
432,652
All Fund Types and Account Groups follows:
1,325,000 902,420
Total general obligation bonds $11,935,000
g
935,583
7534 ,8.) Less unamortized loss on 1993 refunding bonds 2
479,417
1 1,700,125
Revenue bonds
6,000,000
17,7002125
General obligation bond and revenue bond debt service requirements to maturity are as '
follows:
General Long -Term
Year Ending Enterprise Funds Debt Account Group Total
December 31, Pri,ncipaal Interest Princi al Interest Princi al Interest
1
2001 900,000 474,204 390,000 467,974 1,290,000 942,178
2002 892,348 453,744 432,652 448,676 1,325,000 902,420
2003 935,583 406,022 479,417 426,844 1,415,000 832,866
2004 978,817 356,939 526,183 402,525 1,505,000 759,464
2005 447,052 304,213 577,948 375,265 1,025,000 679,478
2006 -2021 5,267,923 1,887,893 6,107,077 1,762,403 11,375,000 3,650,296
9,421,723 3,883,015 8,513,277 3,883,687 17,935,000 7,766,702
26
CITY OF SEWARD
NNotes to General Purpose Financial Statements. continued
Long-Term Deb continued
2000 are asNotespayablebytheWaterandSewerEnterpriseFundatDecember3
follows:
IInterest
Rates BBalance
26,231 note payabl ,- to State of Alaska
Department of Environmental Conservation,
due in annual installments of $1,333, plus
interest, through July 15, 2014 2.5% $ 18,361
901,851 note payable to State of Alaska
Department of Environmental Conservation, D
due in annual installments of $70,995, including
interest, through November 5, 2013 2.5% 6695,483
713,844
In December 2000, the Alaska Department of Environmental Conservation revised theI
terms of its two loans by reducing the interest rates from 4.75% and 4.31 % to 2.5%
each.
Debt service requirements to maturity on the notes payable are as follows:
Y
Total
Year Ending 2.5% Note Payable 2.5% Note_ Payable T
December 31, Princi al Interest Principal Interest Principal IInterest
2001 $ 1,036 647 45,082 19,202 46,118 119,849
2002 1,333 433 47,146 16,260 48,479 116,693
2003 1,333 400 48,324 15,081 49,657 115,481
1 2
2004 1,333 366 49,532 13,873 50,865 114,239
2005 1,333 333 50,771 12,635 52,104 112,968
2006 -2014 11,993_ 1,500 454,628 52,617 466,621 554,117
668 713 844 1133 347
Obligation Payable to the State of Alaska Public Employees Retirement System
The dissolution of the Seward General Hospital Enterprise Fund, a blended component
unit, on December 31, 1996 resulted in the termination of all Hospital employees. The
City assumed the obligation for the additional pension contributions for Hospital
employees vested in the State of Alaska Public Employees Retirement System at
December 31, 1996. At December 31, 2000, management estimated this liability at
1,082,570. The ultimate amount of this obligation and the terms of payment have not
been determined by the State of Alaska Department of Administration, Division of
Retirement and Benefits.
27
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Long-Term Debt, continued
Defeasance of Debt
In 1993, the City of Seward defeased certain general obligation bonds by placing the
proceeds of new bonds and other available funds in irrevocable trusts to provide for all
future debt service payments on the old bonds. Accordingly, trust account assets and
liabilities for defeased bonds are not included in the City's financial statements.
General obligation bonds with a balance of $1,280,000 at December 31, 1999 were fully
retired in December 2000.
Chan es in Long-Term Liabilities
During the year ended December 31, 2000, the following changes occurred in long -term
liabilities:
General Government
Compensated absences
General obligation bonds
Retirement incentive program
State of Alaska
Enterprise Funds
General obligation bonds
Unamortized loss on refunding
Revenue bonds
Capital leases
Retirement incentive program
Notes payable
lnterrial Service Fund
Capital leases
Balance at Balance at
January 1, December 31,
2000 Additions Reductions 2000
174,014
8,867,400
117,154
1,082,570
10,241,138
16,002
16,002
4,157,600
277,038) -
3,100,000 3,000,000
475,000 -
44,299 28,972
754,478
8,25 4,339 .3,028,972
272,192
354,123
68,101
422,224
735,877
42,163)
100,000
65,000
32,634
40,637
931,985
93,323
190,016
8,5 13,277
49,053
1,082,570
9,834,916
3,421,723
234,875)
6,000,000
410,000
40,637
713,841
10,351,326
178,869
I
L
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Long-Term Debt2 continued
Revenue Bond Requirements
Certain covenants of the revenue bonds require establishment of bond redemption and
reserve accounts. These balances are reflected as restricted cash and investments at
December 31, 2000 as follows:
Electric Enterprise Fund $ 307,205
Harbor Enterprise Fund 24_518
Total restricted cash and investments $ 555,723
The Electric and Harbor revenue bonds also require that rates be maintained at a level that
will produce net revenues after certain adjustments, equal to 1.3 and 1.2 respectively,
times the amount required each year to pay the principal and interest. The first
payment on the Harbor bonds will be made in 2001.
Electric
Operating income before depreciation $ 1,784,794
Add:
Payment in lieu of taxes 511,101
Investment income 23757
Available for debt service 2,529,652
Requirement _181,056
Excess of revenue over requirement $2.148,596
1
10) Capitalized Leases
The City has entered into several lease agreements as lessee for financing the acquisition of asandtruck, motor grader, pumper truck, rescue vehicle, and a 250 -ton boatlift. These lease
agreements qualify as capital leases for accounting purposes (titles transfer at the end of the
lease terms) and, therefore, have been recorded at the present value of the future minimum
lease payments. The following is a summary of the assets acquired with the capital leases
as of December 31, 2000:
Internal
Enterprise Service
LFunds Fund
Machinery and equipment $
856,546 701,447
Less accumulated depreciation 299,795 ,I 82
Carrying value S 556,751 359,265
29
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Capitalized Leases continued
The following is a schedule of future minimum lease payments under these capital leases
and the present value of the net minimum lease payments at December 31, 2000:
Internal
Year Ending Enterprise Service
December 31, Funds Fund
2001 99,650 83,599
2002 99,715 59,680
2003 99,353 52,952
2004 10:3,553
2005 101.983
Total minimum lease payments 504,254 196,231
Less interest 94,254 17,362
Present value of future minimum
lease payments 410,000 178,869
Less current portion 70.000 75.852
Long -term portion 103.017
11) Retirement Incentive Pro ram
In August 1997, the City elected to participate in the Public Employees' Retirement
System retirement incentive program. The program required the City to pay $80,761 to
the State of Alaska in three installments of $26,920 on August 1, 1998, 1999, and 2000.
In the six -month period ending December 31, 1999, additional employees elected to
retire, requirinl- an additional total payment of $134,533. The combined original
liability totaled $215,294 with a balance outstanding at December 31, 2000 of $89,690.
The remaining annual installments are $44,845 in August 2001 and 2002.
30
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
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.
The plan is included in a comprehensive annual financial report that includes financial
statements and other required supplemental information. Tlie report is available at the
following address:
Department of Administration
Division of Retirement and Benefits
P.O, Box 110203
Juneau, AK 99811 -0203
Funding Policy
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 contribution
rate for PERS for 2000 follows:
January 1 July 1 to
to June 30 December 31
Pension 5.17% 4.82%
Postemployment
healthcare 1.92 °10 1.96%
Total contribution rate 7.09% 6.78%
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 period ended December 31, 2000, the City's pension cost of $217,749 for
PERS was equal to its required and actual contributions.
31
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Defined Benefit Pension Plan continued '
Annual Pension Cost, continued
The required contribution was determined as part of the June 30, 1997 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;
t3. 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% armually; and ,
5. Asset valuation — assets are valued at fair value; the asset valuation method
recognizes 20% of the investment gain or loss in each of the current and preceding
four years. '
Three -year trend information for PERS follows:
32 1
Annual Percentage Net
Period Pension of APC Pension
Endi Cost (APQ Contributed Obligation
June 30, 1999 222,230 100%
December 31, 1999 107,653 100%
December 31, 2000 217,749 100%
32 1
CITY OF SEWARD
1 Notes to General Purpose Financial Statements, continued
Defined Benefit Pension Pjaji3 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
SDate Assets Liabili ty Liabilit atio PaYr 11 P
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 (90/0)
1
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 %)
June 30, 1999: 0 29%
Pension 10,897,000 10,052,000 (845,000) 108 /0 2,871,000 ( }
Postemployment
healthcare 4,418,000 4,076,000 (342,000) 108% 2,871,000 (12 %)
13) International Brotherhood of Electrical 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 the period from January 1 through October 8, 2000, was $3
per compensable hour, increasing to $4 per compensable hour effective October 9,
2000, per terms of a new negotiated agreement expiring June 30, 2003. The total
contribution for the year ended December 31, 2000 was $33,661.
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.
1
33
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued ,
Deferred Compensation Plan, continued
The City has amended its deferred compensation plan in accordance with changes in theInternalRevenueCode. These new provisions require that all assets and income of the
plan be held in trust for the exclusive benefit of participants and their beneficiaries.
15) Risk Management
The City faces a considerable number of risks of loss, including (a) damage to and loss of
property and contents, (b) employee torts, (c) professional liability; i.e., errors and
i.e., employee injuries,
omissions, (d) environmental damage, (e) workers' compensation;
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.
aTheCityisamemberoftheAlaskaMunicipalLeagueJointInsuranceAssociation (JIA),
governmental insurance pool established by the Alaska Municipal League. The JIA
provides the City coverage for property, including building and contents, automobiles,
mobile equipment and data processing equipment; casualty, including general liability,
public officials and employees liability, law enforcement professional liability,. auto
liability and employee benefit liability; workers' compensation, including employers
liability; and commercial blanket bond. The City maintains supplemental marine insurance, boiler and machinery insurance and firefighters group accident coverage with insurance
companies placed through JIA. The City has no coverage for potential losses from
environmental damages.
The JIA is a public entity risk pool organized to share risks among its members. The '
Association's bylaws provide for the assessment of supplemental contributions from
members in the event that losses and expenses for any coverage year exceed the annual
contributions and income earned on such contributions for the year. Such supplemental '
contributions shall be based upon each member's deposit contribution in comparison to
the aggregate deposit contributions of all members. The Association made no
supplemental assessments during the period ended December 31, 2000. ,
The JIA provides loss control services and conducts periodic inspections to ensure safe
operations. The City has utilized an established safety committee to review and '
recommend safety policies and procedures for all departments. The City Council
designates a portion of the General Fund balance to meet potential losses related to the
JIA basic core coverages and the law enforcement liability pool (LELP). LELP was '
established by the JIA as a separate insurance pool for law enforcement professional
liability, including }ail liability. '
CITY OF SEWARD
Notes to General Purpose Financial Statements, continued
Risk Managemeab continuedTherewasnosignificantreduction in the City's major categories of risk insurance coveragefromtheprioryear, and the amount of settlements for the past three fiscal years did not
rmaterially exceed the City's insurance coverage.
16) Changes in Contributed Ca 011Asummaryofchangesincontributed capital for the year ended December 31, 2000 follows:
Corrections
Balance at
Increase Balance at
anuary 1.2000
e
Additions Dee ' ns Decrease' 1? e r 1 200(1
Enterprise Funds: =
355 1180,311
24,103,666
Electric $ 22,923,, 11,827,299
Water and Sewer 11,800,940 26,359 -
X1,702,649) 9,613,617
Harbor 8,268,658 3,047,608
1,527,247 49,810,682
SMIC 48,283,435 - - 37&174
parking Revenue _JL6 t74
175.442) °s
Total Enterprise Funds S 211--.65-2-5
Internal Service Fund $ .
A summary of changes in accumulated amortization of contributed capital foll wTectio
Balance at
Increase Balance at
ram a
Deletio Decrease December 200(1
Enterprise Funds: 8,105,973
Electric S 7,317,442 788,531 _
5,839,578
1
Water and Sewer ,540,809 298,769 (
255,398) 1,519,709
Harbor 1,440, 335,091 _
957,567 16,253,204
SMiC 14,181,882222 1,113,815 _
Parking Revenue _ 240.756 _42 ,589
Total Enterprise Funds S ZLI&M 2-578-2
Internal Service Fund S 22-JaS ---=
17) Se ment Information for Pro rieta Fund T es
Enterprise FundsTheCitymaintains five enterprise funds, which provide electric, water and sewer, harbor,
Seward Marine Industrial Center and public parking services. Segment information
for the year ended December 31, 2000 follows:
1
35
19) Conduit Debt -Revenue Bonds '
On May 1, 1996, the City participated in the issuance of $17,500,000 of revenue bonds to
make a loan to the Seward Association for the Advancement of Marine Science
SAAMS), an Alaska nonprofit corporation, to finance a portion of the costs incurred '
to construct, install and equip the Alaska Sealife Center Project (the Center). The
bonds are special obligations of the City, payable solely from payments made by
SHAMS under the loan agreement. The bonds do not constitute a general obligation '
debt or pledge of the full faith and credit of the City and, accordingly the bonds are not
reflected in the accompanying financial statements. '
36 '
1
CITY OF SEWARD
Notes to General Purpose Financial Statemen +,s, continued
Segment Information for Prourietary Fund Types, continued
Total
Water parking Enterprise
E cc g&sewer Harbor SMIC ROT= funds
Total operating revenues 6,467,005 1,461,305 1,508,524 453,449
377,101 397,992 1,998,841
121,592 10,011,875
4,70,220
Depreciation expense 1,234,373
550,421 52,719 (120,053) (1,826,162) 26,
313
1,369
Operating income (loss)
Operating transfers
to other funds 35,000} {76,840) (132,460) (12,386)
65,724) (1,667,105) 22,070)
256,686)
1,277,040)
Net earnings {loss} 407,024 70,835
1,180,311 26,359 1,344,959 1,527,247 4,078,876
Capital contributions
Property, plant and
additions 2,4587138 350,106 3,038,300 2,053 61,908 5,910,505
equipment
Property, plant and 16,023 - 4,167 - 25,190
equipment deletions
Working capital
surplus (deficiency) 4,130,478 11871,458 3,411,014 (95,869)
10,648,173 14,403,467 34,542,164
65, 821
197,559
9,382,902
90,442,121
Total assets 30,650,758
Bonds and other long -term
5,240,000 733,159 3,021,322 1,591,723 10,586,204
liabilities
Fund equity
24,681,110 9,840,299 10,426,348 33,037,597 197,427 78,182,781
1
18) Harbor Enterprise Fund
During the fiscal year ended June 30, 1999, the City received a grant of $3,134,200 from
the State of Alaska to perform repairs and renovations to the harbor facilities. At
December 31, 2000, $49,839 of the amount remained unexpended and is included in
deferred revenue in the Harbor Enterprise Fund.
19) Conduit Debt -Revenue Bonds '
On May 1, 1996, the City participated in the issuance of $17,500,000 of revenue bonds to
make a loan to the Seward Association for the Advancement of Marine Science
SAAMS), an Alaska nonprofit corporation, to finance a portion of the costs incurred '
to construct, install and equip the Alaska Sealife Center Project (the Center). The
bonds are special obligations of the City, payable solely from payments made by
SHAMS under the loan agreement. The bonds do not constitute a general obligation '
debt or pledge of the full faith and credit of the City and, accordingly the bonds are not
reflected in the accompanying financial statements. '
36 '
1 CITY OF SEWARD
1 Notes to General Purpose Financial Statements, continued
Conduit Debt, continued
The Center is a marine research facility, rehabilitation center, and public education and visitor
facility located in Seward. The total cost of the Project was approximately $55,000,000.
r Approximately $37,500,000 of total Project costs were 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 were paid from bond proceeds. The Center and the
property on which it is located are owned by the City. SHAMS 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 SHAMS.
A schedule of the debt outstanding at December 31, 2000 follows:
SAAMS
16,260,000
Subsequent to year end, these bonds were paid off in their entirety.
20) Spring Creek Correctional Center
In 1985, the City undertook the financing and construction of a 320 -bed, maximum security
icorrectional facility on behalf of the State of Alaska. The facility was financed with
nonrecourse certificates of lease participation and leased to the State under the terms of a
long -term lease signed in 1985. The facility is currently being operated by the State.
Technically, the City is the owner of the facility, however, under the terms of both the
financing and lease agreements, there is no possibility of the City ever becoming liable for
the debt or being obliged to take actual possession of the facility. Consequently, the City
has not included the value of the facility in its general fixed assets.
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.
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 fromsuchclaimsandlawsuitsbeyondthatwhichiscoveredbyinsurancewouldnothavea
material effect on the City's financial condition or its ability to carry on its activities as
now conducted.
37
COMBINING,
INDIVIDUAL FUND
AND
ACCOUNT GROUP STATEMENTS
AND SCHEDULES
38
GENERAL FUND
The General Fund is established to account for the financial operations of
the City of Seward which are not accounted for in any other fund.
Revenues for this fund are recorded by source. Principal sources of
revenue include property taxes, sales taxes, intergovernmental revenue,
and charges for services.
Expenditures are recorded first by function, then by activity and object
of expenditure. General Fund expenditures are incurred for the purpose
of providing basic municipal services such as police and fire protection,
recreation, library, planning and zoning, legal and administrative
services.
Exhibit F -1
CITY OF SEWARD
General Fund
Balance Sheet
December 31, 2000
with Comparative Amounts for December 31, 1999
AMA 2Q 19
Cash and investments 4,401 644 3,034.4$j
Receivables:
Taxes:
43,288 48,959
Personal property
Less allowance for doubtful receivables
25,437) 63740,637)
Net personal property
17,851 8,322
Motor vehicle
5,780 6,108
hotellmotel room
11,355 8,335
Real property
20,953 21,531
Sales
310,429 309,592
Net taxes
366,868 --'8
84,569 125,055
Accounts
Less allowance for doubtful receivabies 2,491) 2,613)
Net accounts
82,078 122,442
Property assessments
12,376 258,706
Less allowance for doubtful receivables
241,660)
Net property assessments
12,376 17,046
Grants - State
13,654 54,951
Accrued interest
172,226 221,866
Total receivables
647,202 770,193
Prepaids
28.606 190,303
7,263 4,957
Inventory
Due from other funds
212,333 156,194
S 5,297,048 4,156,128
Liabilities and Fund Balance
Liabi lines:
387,211 305,237
Accounts payable
Salanes and wages payable
64,225 43,785
Accrued annual leave
40,748 38,877
Accrued liabilities
45,802 19,988
ruFundsheldintrust
1,266
Deferred revenue
56,17758,177 73,713
Total liabilities
599,585 542,866
Fund balance:
Reserved for inventory and prepaids
35,864 195,260
Unreserved:
Designated:
1,5001000 1,500,000
Working capital
116,252 7,226tUnrealizedgainsoninvestments
Seward Medical Center sales tax
50,852 50,852
431,138 335,776
Insurance
505,815
Subsequent year's expenditures
2,563,352 1,018,331
Undcsignated
Total fund balanceT
4,697,463 3,613,262
S 5,297,048 4,156,128
39
Exhi_ bit F-?
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures
and Changes in Fund Balance
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
Expenditures:
Six Months)
Current:
2000 1999
Revenues:
3,953,139 2,255,326
Taxes
139,871 73,715
Licenses and permits
984,231 438,185
Intergovernmental
2,179,832 925,721
Charges for services
14,786 10,748
Fines and bails
438,005 104,719
Investment income
247,461 41,956
MiscellaneousM
7,957,325 3,850,370
Total revenues
Expenditures:
Current:
1,592,475 864,468
General government
1,970,643 1,029,356
Public safety 981,027 490,459
Public works
711,721 386,599
parks and recreation
245,710 117,411
Library 217,780 166,080
Debt service
5,719,356 3,054,373
Total expendituresT
Excess of revenues over expenditures
2,237,969 795,997
Other financing sources (uses): $46 455,460
Operating transfers from other funds
179,
Operating transfers to Other funds (
1,328,804) (884,140)
Net other financing sources (uses) (
1,148,958) (428,680)
Excess of revenues and other financing
sources over expenditures and other uses
1,489,011 367,317
Beginning fund balance
3,613,262 3,577,473
Residual equity transfers to other funds (
4,810) (331,528)
Ending fund balance $
4,6971463 3,613,262
40
7
L
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and
Changes in Fund Balance- Budget and Actual
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
Revenues:
Taxes:
Property
Sales
Payments in lieu of taxes
Penalty and interest
HotcVmotel room
Total taxes
Licenses and permits:
Building permits
Taxi permits
Department of Motor Vehicles commissions
Animal control licenses
Business licenses
Miscellaneous
Total licenses and permits
intergovernmental:
General revenue sharing
Safe communities
Jail contract
Dispatch contract
NPS dispatch contract
Raw fish tax
Fisheries landing tax
Liquor tax
Parks and recreation grant
Other grants
Total intergovernmental
Charges for services:
Administrative
Rents and leases
Copying charges
Work orders
Recreation
Library
Other
Total charges for services
Fines and bails
Investment income
Miscellaneous:
Sale of land, equipment and gravel
Refuse contract
Other
Total miscellaneous
Total revenues
41
irt'.0
50,000 53,638
Exhibit F -3
Six Months)
1999
Actual
515,544
1,197,288
419,108
1,138
122,248
2,255,326
3,638 33,398
1,500 730
Variance
820
53,000
Favorable
Budttet Actual Unf*voijbic
5 560,000 694,332 134,332
2, 100,000 2,197,561 97,561
854,247 844,583 9,664)
3,000 4,044 1,044
168,000 212,619 44,619
3,685,247 3,953,139 267,892
50,000 53,638
Exhibit F -3
Six Months)
1999
Actual
515,544
1,197,288
419,108
1,138
122,248
2,255,326
3,638 33,398
1,500 730 770) 820
53,000 66,783 13,783 29,897
500 970 470 90
20,000 16.260 3,740) 81190
1,000 1,490 490 1,320
126,000 139,871 13,871 73,715
67,672 90.570 22,898 102,439
41,600 73,598 31,998 83,096
363,000 363,465 465 181,733
96,500 120.500 24,000 24,250
500 2,000 1,500 1,000
213,000 263,743 50,743 814
3,000 15,134 12,134 10,846
15,000 15,000 12,000
56.400 39,310 17,090) 22,007
6,300 911 5,389)
862,972 984,231 121,259 438,185
988,258 1,593,670 605,412 563,465
78,562 88,864 10,302 50,033
32,000 31,701 299) 14,021
48,000 41,444 6,556) 21,192
405,900 395,931 9,969) 260,880
6,500 6,069 431) 2,675
24,000 22,153 1,847) 13,455
1,583,220 2,179,832 596,612 925,721
15,000 14,786 214) 10,748
163,500 438,005 274,505 104.719
72,384 72,384 15
44,000 49,490 5,490 29,963
66,643 125,587 58,944 11,978
110,643 247,461 136,818 41,956
6,546,582 7,957,325 1,410,743 3,850.370
42
Exhibit F-3 continued t
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
six Months)
2000 1999
Variance
Favorable
Budget Actual jUnfavorable Actual
Expenditures:
General government:
Mayor and council:
24,300 22,565 1,735 5,850
Salaries
Employee benefits 1,611 2,537 926) 544
Audit
37,600 37,600 37,600
125,000 95,759 29,241 49,984
Legal
Supplies and maintenance
16,700 11,748 4,952
1,301
6.731
61,096
Legislative representation
123,000
64,800
121,699
60,000 4,800 22,961
General and administrative
Total mayor and council
393,011 3 9150841,103 _ 184,766
City manager:
164,599 150,053 14,545 79,628
Salaries
55,814 51,705 4,109 28,697
Employee benefits
15,645 5,796 9,849 2,445
Purchased services
7,300 7,327 27) 2,522
Supplies and maintenance 31,300 37,045 5,745) 13,508
General and administrative
274,658 251,926 22,732 126,800
Total city manager
City clerk:
94,569 88,838 10,731 46,162
Salaries
33,569 29,670 3,899 15,449
Employee benefits
1,600 2,181 581) 684 tPurchasedservices
120 120) 494
Supplies and maintenance 7,900 5,691 2,209 2,443
General and administrative
Total city clerk
142,638 126,500 16,138 65,232
Finance:
302,733 292,702 10,031 144, 624
Salaries
Employee benefits
127,023 117,845 9,178 62,717
Purchased services
16,300 20,774 4,474) 12,544
Supplies and maintenance
47,900 33,341
3
14,559
468)
19,726
16,057
General and administrative
29,910
18,000 0016,016 11,999
Capita! outlay
Total finance
541,865 501,041 40,825 255,668
42
Exhibit F -3 continued
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
Six Months)
2000 1999
Variance
Favorable
Budget Actual (Lnfavorablel Actual
Expenditures, continued:
General government, continued:
Community development:
62,495 57,095 5,400 40,230
Salaries
Employee benefits 41,648 37,927 3, 21 15,103
Purchased services 31,675 29,550 2,1125 4,905
Supplies and maintenance 6,800
6,000
2,613
5,152
4,187
848
2,013
1,177
General and administrative
Total community development 148,618 132,337 16,281 63,428
General services:
Employee benefits 88,000 70,502 17,498
Purchased services 21,500 14,320 7,180 29,766
Supplies and maintenance 40,850 43,713 2,863) 5,077
19,363
General and administrative 6,674 1,748
2,865
4,926
2,865)
1
Capital outlay
Total general services 1 57,024 133,148 23,876 54,206
Contributions to civic organizations:
10,412
Providence Seward Medical Center 9,258 9,258
Wesley Rehabilitation and Care Center 21,071 21,071 23,697
Seward Life Action Council
8,259
Senior Citizens 1,000 1,000 1,000
Museum 1,000 1,000 1,000
Seaview Community Services 7,343 7,343
Chamber of Commerce 35,000 35,000 70,000
Miscellaneous 20,943 20,943
114,368
Total contributions to civic organizations 95,615 95,615
Total general government 1,753,430 1,592,475 160,955 864,468
Public safety:
Police:
Salaries 671,435 627,241 44,194 323,253
Employee benefits 280,194 260,072 20,122 141,324
Purchased services 69,349 62,528 6,821 32,765
Supplies and maintenance
36,700
24,000
45,063
31,562
8,363)
7,562)
16,470
11,335
General and administrative
Total 1,081,678 1,026,466 55,212 525,147
police
43
Exhibit F -3, continued
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
Six Months)
2000 1999
Variance
Favorable
Budget Actual [Unfavorable Actual
Expenditures, continued:
Public safety, continued:
Jail:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total jail
Animal control:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total animal control
Fire:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total fire
Volunteer training:
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total volunteer training
Emergency preparedness:
Purchased services
Supplies and maintenance
General and administrative
Total emergency preparedness
217,919 203,145 14,774 109,519
95,512 90,409 5,103 48,798
19,900 17,950 1,950 9,244
9,100 8,604 496 2,577
73,042 69,978 3,064 36,546
415,473 390,086 25,387 206,984
6,181 6,181)
509 509)
54,625 44,745 9,880 25,508
2,500 2,249 251
100 178 78)
57,225 53,862 3,363 25,508
109,524 105,096 4,428 52,085
42,864 41,508 1,356 21,539
130,000 130,060 60) 67,564
27,800 22,454 5,346 21,632
12.200 12,908 708) 6,290
322,388 312,026 10,362 169,110
5,300 5,300
4,700 3,654 1,046 1,933
12,525 9,227 3,298 7,905
18,000 17,020 980 8,139
40,525 29,901 10,624 17,977
18 18) 11
3,000 1,715 1,285
2,850 2,944 94) 9 1313
5,850 4,677 1,173 1,652
44
1
u
17
LJ
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
Expenditures, continued:
Public safety, continued:
Engineer and utility manager:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Capital outlay
Total engineer and utility manager
Building inspector:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Total building inspector
Total public safety
Public works:
Roads and streets:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Capital outlay
Total roads and streets
City shop:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Capital outlay
Total city shop
2000
Exhibit F -3 continued
Six Months)
1999
Variance
Favorable
Bum Actual anfavorablel Actual
65,831 68,248 2,417) 40,487
23,063 27,942 4,779) 15,864
11,750 10,224 1,526 4,846
3,500 2,767 733 355
5,800 4,782 1,018 1,597
3,000 3,000
112,944 113,863 919) 63,149
118,470 85,381
26,432 22,679 3,753 13,597
4,832 4,810 22 1,983
5,950 5,783 167 2,743
2,100 1,028 1,072 666
11,250 5,462 5,788 840
50,564 39,762 10,802 19,829
2,086,647 1,970,643 116,004 1,029,356
174,151 219,667 45,516) 104,034
79,396 84,276 4,880) 37,727
210,611 131,637 78,974 73,393
112,989 167,357 54,368) 68,220
6,525 14,537 8,012) 2,634
20,970
583,672 617,474 33,802) 306,978
118,470 85,381 33,089 35,546
73,569 58,152 15,417 27,583
38,909 37,826 1,083 17,073
21,310 27,170 5,860) 17,099
850 1,311 461) 701
969
253,108 209,840 43,268 98,971
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
General and administrative
Capital outlay
Total parks and recreation
Library:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
General and administrative
Capital outlay
Total library
Debt service:
Principal
Interest
Total debt service
Total expenditures
Excess of revenues over expenditures
Exhibit F -3, continued 1
2000
Variance
Favorable
Budget Actual (Unfavorable
Six Months) '
1999
Actual
47,013 46,550 463 20,973
21,662 18,089 3,573 8,864
83,450 63,142 20,308 46,391
22,850 25,506 2,656)
400 426 7,
940
342
175,375 153,713 21,662 84,510
1,012,155 981,027 31,128 490,459
371,478 351,464 20,014 176,146
124,758 116,597 8,161 51,952
153,298 131,001 22,297 95,064
61,950 65,356 3,406) 25,947
45,300 47,303 2,003) 29,642
7,848
756,784 711,721 45,063 _ 386,599
116,213 118,220 2,007) 57,668
54,691 51,869 2,822 26,457
25,750 29,892 4,142) 12,763
36,500 32,297 4,203 16,862
13,250 10,932 2,318 3,661
2,000 2,500 500)
248,404 245,710 2,694 117,411
119,123 119,123 113,240
98,657 98,657 52,840
217,780 217,780 166,080
6,075,200 5,719,356 355,844 3,054,373
471,382 2,237,969 1,766,587 795,997
46
1
CITY OF SEWARD
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual, continued
1
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
Beginning fund balance
Residual equity transfers to other funds
Ending fund balance
1
1
2000
Exhibit F -3, continued
Six Months)
1999
671,576)
Variance
367,317
3,613,262
Favorable
3,577,473
Bum Actual (Unfavorable) Actual
179,846 179,846 - 455,460
1,328,804) 1,328,804} - 884,140)
1,148,958) 1,148,958) - 428,680)
671,576) 1,089,011 1,766,587 367,317
3,613,262 3,613,262 - 3,577,473
4,810) 4,810) - 331,528)
2,930,876 4,697,463 1,766,587 3,613,262
47
F
L
THIS PAGE LEFT BLANK IN'T'ENTIONALLY I
F
1
48 1
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for revenues from specific sources,
which are restricted to finance particular functions and activities. Funding sources
include external grants and operating transfers from the General Fund.
1
F
11
1 SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for expenditures associated with dedicated or restricted
revenue sources.
Bicycle Safety - To account for the costs of a bicycle rodeo and bike safety days for
pre- school, elementary and junior high school students. The program promotes
bicycle/pedestrian safety, and teaches children to prevent bicycle theft. Costs
include the purchase of bicycle helmets, paint, signs, poles, striper, posters etc.
Litter Control (ALPAR) -- To account for the cost of a City - administered litter
control program. The program employs local youth and is financed by grants from
the non -profit Alaskans for Litter Prevention and Recycling and the Kenai Peninsula
Borough.
Two Lakes Park - To account for acquisition of land, survey and development of the
park area, including site preparation, picnic tables, and other improvements.
Public Library - To account for the costs of administering the state public library
grant, including the purchase of library materials, supplies and equipment.
Police Fund - To account for costs incurred for certain police - related activities with
monies provided by the federal government, State of Alaska and City of Seward.
DARE Program - To account for monies received and expended related to Drug
Awareness Resistance Education.
Avalanche 2000 - To account for the costs of repairing and mitigating damage to
electric infrastructure, roads, and other City facilities, resulting from a major
avalanche event in February 2000.
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.
49
SPECIAL REVENUE FUNDS, continued I
Seward Comprehensive Plan — To account for the costs of updating the Seward ,
Comprehensive Plan and preparing and producing the Comprehensive Plan
document.
Historic Records Preservation Phase II -- Supplements the prior preservation grant. '
Seward Community Cemetery -- To account for the refurbishment of the Seward
community cemetery, provide for improved access to cemetery sites, upgrade and
straighten the existing road, plat land to establish formal grave sites, and clear and
level 75 new grave sites.
Computer Network/Web Page — To account for the costs of implementing Phase 1
of the City - handed computer network, including development of a City web page to '
improve citizen access to public information.
Seward Life Action Council Pass- Througb — To account for a pass - through grant to '
the Seward Life Action Council, for the purpose of improving handicapped access to
their health care facilities. ,
5n
J
ITHIS PAGE LEFT BLANK INTENTIONALLY
1 51
CITY OF SEWARD
Special Revenue Funds
Combining Balance Sheet
December 31, 2000
with Comparative Totals for December 31, 1999
Assets
Cash and investments
Receivables:
Federal grants
State grants
Other
Liabilities and Fund Balances
Exhibit G-11
Other Totals
Parks and Public General
Recreation Safety Government 2000 1999
28,994 2,890 51,996 83,880 56,388
8,887 - 8,887 115,965
2,962 - 2,962 1,272
269875 - 26,875 -
28,994 41,614 51,996 122,604 173,625
Liabilities:
640 4,709 5,349 47,643
Accounts payable
8,434 22,751 31,185 35,067
Deferred revenue
38,724 38,724 65,210
Due to other funds
Total liabilities 8,434 39,364 27,460 75,258 147,920
Fund balances - unreserved
20,560 2,250 24,536 47,346 2 5,705
and undesignated
2 8,9 94 41,614 51,996 12 24 173,625
52
I
xhibit -2
CITY OF SEWARD
Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended December 31, 2000
with Comparative Totals for Six -Month Period Ended December 31, 1999
evenues:
Federal grants
Parks and
State grants
Public
Miscellaneous
Total revenues
Expenditures:
Region
and employee benefitsSalaries
Contracted services
Through
Supplies
Pass - through payments
Other services and charges
Total expenditures
xhibit -2
CITY OF SEWARD
Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended December 31, 2000
with Comparative Totals for Six -Month Period Ended December 31, 1999
Excess of revenues over (under) - -
169) (1,876) (142) (2,187) (5,149)
expenditures
Other financing sources - operating transfers 1,828 22,000 - 23,828 1,534
from other funds
Excess of revenues and other financing
sourcesover(under)expenditures (
169) - (48) 21,858 - 21,641 (3,615)
Beginning fund balances 20,729 - 2,298 2,678 - 25,705 29,320
Ending fund balances 5 20,560 - 2,250 24,536 47,346 _ 25,705
53
Other Totals
Parks and Public Public General Pass - Six Months)
Region Library afgy_ Government Through 2040
S 750 137,372 138,122 70,849
6,155 45,790 4,351 6,614 62,910 106,492
2,769 307,528 4,709 315,006 109,242
3,519 6,155 490,690 9,060 6,614 515 B 286,583
2,348 103,677 1,053 107,078 4,983
1,619 220,614 6,569 228,802 71,190
1,280 4,536 21,200 1,107 28,123 2,388
203,952
60 147,075 473 6,614 154,222 9,219
3,688 6,155 492,566 9,202 6,614 518,225 291,732
Excess of revenues over (under) - -
169) (1,876) (142) (2,187) (5,149)
expenditures
Other financing sources - operating transfers 1,828 22,000 - 23,828 1,534
from other funds
Excess of revenues and other financing
sourcesover(under)expenditures (
169) - (48) 21,858 - 21,641 (3,615)
Beginning fund balances 20,729 - 2,298 2,678 - 25,705 29,320
Ending fund balances 5 20,560 - 2,250 24,536 47,346 _ 25,705
53
CITY OF SEWARD
Parks and Recreation Special Revenue Funds
Combining Balance Sheet
December 31, 2000
Assets
Cash and investments
Liabilities and Fund Balances
Liabilities - deferred revenue
Fund balances - unreserved
and undesignated
54
Exhibit G -3
Two
Litter Lakes
Control Park Totals
8,434 20,560 28,994
8,434 - 8,434
20,560 20,560
8,434 20,560 28,994
CITY OF SEWARD
Parks and Recreation Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended December 31, 2000
1
Revenues:
Federal grants
Miscellaneous
Total revenues
Expenditures:
Salaries and employee benefits
Supplies
Other services and charges
Total expenditures
Excess of revenues over
under) expenditures
Beginning fund balances
Ending fund balances
55
Two
Bicycle Litter Lakes
Safe Control Park
Exhibit G -4
Totals
750 750
2,769 - 2,769
750 2,769 - 3,519
2,348 - 2,348
919 361 - 1,280
60 - 60
919 2,769 - 3,688
169) 169)
169 20,560 20,729
20,560 20,560
CITY OF SEWARD
public Safety Special Revenue Funds
Combining Balance Sheet
December 31, 2000
Assets
Cash and investments
Receivables:
Federal grants
State grants
Other
Liabilities and Fund Balances
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund balances - unreserved and
undesignated
Exhibit G-5
640 - - 640
38,724 - 38,724
640 38,724 39,364
2,250 2,250
640 38,724 2,250 41,6W
56
High Risk
Avalanche Traffic
DARE 2000 Enforcement Totals
640 - 2,250 2,890
8,887 8,887
2,962 2,962
26,875 26,875
640 38,724 2,250 41,614
640 - - 640
38,724 - 38,724
640 38,724 39,364
2,250 2,250
640 38,724 2,250 41,6W
56
Exhibit G -6
CITY OF SEWARD
Public Safety Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended December 31, 2000
High Risk
Police Avalanche Traffic
Fund DARE 2000 Enforcement Totals
Revenues:
137,372 - 137,372
Federal grants
45,794 - 45,790
State grants
25 307,503 - 307,528
Miscellaneous
Total revenues $ - 25 490,665 - 490,690
xpenditures:
Salaries and employee benefits - - 103,677 - 103,677
Contracted services - -
220,614 - 220,6i4
Supplies - 1,853 19,347 - 21,204
Other services and charges 48 - 147,027 - 147,075
Total expenditures 48 1,853 490,665 - 492,566
1
Excess of revenues over (under)
expenditures {
4$} (1,$28) - - 1,876)
Other financing sources -
1,828 - - 1,828
operating transfers from other funds -
Excess of revenues and other
financing sources over (under)
expenditures (
48) - - - 4$)
Leg'inning fund balances 48 - - 2,250 2,298
jEnding fund balances $ i
2,250 2,250
57
F-xhi bit G^7
CITY OF SEWARD
Other General Government Special Revenue Funds
Combining Balance Sheet
December 31, 2000
Seward Historic
Compre- Records Seward Computer
hensive Preservation Community Network/
Assets Plan Phase Il Cemetery Web Page Totals
Cash and investments $ 26,934 1,000
X2,
06? 22,000 51,996
Liabilities and Fund Balances
Liabilities: 4,709
Accounts payable
4,
225 -
22,751
Deferred revenue 22 +225 _ 526 —`
Total liabilities 26,934 526 - - 27,460
Fund balances - unreserved and
474 2,062 22,000
undesignated -
2
26,934 1,000 2,062 22 ,000 5 6
58
Exhibit G =8
CITY OF SEWARD
Other General Government Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended December 31, 2000
Seward Historic
59
Compre- Records Seward Computer
hensive Preservation Community Network/
plan Phase 11 Cemetery Web Page totals
Revenues:
743 3,60$ 4,351
State grants
4 4,709
Miscellaneous
709
4,709 743 3,608 - 9,060
1 Total revenues
Expenditures:
805 248 1,053
Salaries and employee benefits
1,860 6,569
Contracted services 4 704
1,107 1,107
Supplies
80 393 _ 473
Other services and charges
9,202
Total expenditures 4,709 885 3,608 -
Excess of revenues over (under)
expenditures - (
142) -
t'n transfers
142)
Other financing sources - opera g _ 22,000 22,000
from other funds
Excess of revenues and other financing
sources over (under) expenditures - (
142} - 22,000 21,858
616 2,062 - 2,678
Beginning fund balances
Ending fund balances -
474 2,062 22,000 24,536
59
I
THIS PAGE LEFT BLANK INTENTIONALLY 1
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
1 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.
A
P:
CITY OF SEWARD
Debt Service Fund
Balance Sheet
December 31, 2000
with Comparative Amounts for December 31, 1999
1
Assets 2000
Exhibit H -1
1999
C hand investments $
564,909 429,829
as
Fund Balance
09
Fund balance - reserved for debt service . 564a
9 --.- 429,829 ----
t
1
1
1
61
CITY OF SEWARD
Debt Service Fund
Statement of Revenues, Expenditures
and Changes in Fund Balance
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
Revenues - investment income
Expenditures;
Interest payments
Principal payments
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources - operating transfers from other funds
Exhibit H -2
Six Months)
2000 1999
25,352 10,168
388,217 198,978
235,000 205,000
n t ? A !l2di4
597,865) (393,810)
732,945 487,544
Excess of revenues and other financing sources over expenditures 135,080 93,734
Beginning fund balance
Ending fund balance
62
429,829 336,095
S 564,909 429,829
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.
CAPFrAL 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 accc unt for the construction of a high school bike path
extension. Monies were provided through a State matching grant.
Ballfield - To account for the cost of a new community softball field called
Citizens Field." Funding is provided by the City,
Campground ADA and Waterfront Improvements - To account for the costs of
providing wheelchair accessible camping and parking sites at Waterfront Park, as
well as to construct a recreational vehicle sewer dump station.
City Playgrounds - To account for the costs of upgrading, repairing and constructing
tot lots and playgrounds in the City.
1 63
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.
hose Replacement - To account for the cost of fire hose replacement. Fire ep
Flood Mitigation - To account for the costs of engineering and construction of a
levee at Japanese Creek, to mitigate flooding at Resurrection River.
911 Equipment Replacement - To account for the costs of upgrading the City's 911
emergency telephone equipment, including the purchase of recording equipment.
Seward Association for Advancement of Marine Science - To account for the
development of the Alaska Sealife Center as a recreation and marine mammal
center and as a center for education and research related to the naturalrehabilitation
resources injured by the Exxon Valdez oil spill and to the prevention and
amelioration of marine spills. Monies are provided primarily by grants from the
federal government, State of Alaska and the Exxon Valdez Oil Spill Trustee
Council.
Capital Acquisition - To account for purchase of equipment not financed by the
Motor Pool Fund and capital improvements and projects of at least $20,000.
Funding is provided as available from the General Fund.
Streets and Sidewalks - To account for the cost of repairing and installing new
sections of sidewalks, curbs and gutters, and to improve handicapped accessibility of
sidewalks.
1 63
CAPITAL PROJECT FUNDS, continued
t
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.
Frrehall Roof Repair - To account for the cost of repairing and/or replacing the roof '
at the firehall.
Street Improvements - to account for the costs of reconditiozung portions of Ballaine
Boulevard, Bear Drive, and Marathon Drive.
Ci ty Hall Facilities and Equipment - To account for the costs of replacing aging
lighting ballasts and fixtures throughout the City Hall building, as well as replacing
some areas of warn carpet. '
Library Information and Technology - 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. '
64 1
Assets
Cash and investments
Receivables:
Federal grants
State grants
Other
CITY OF SEWARD
Capital Project Funds
Combining Balance Sheet
December 31, 2000
with Comparative Totals for December 31, 1999
Other
Parks and Public General
Recreation agfety Government
63,173 3 591,093
0
Exhibit 1 -1
Totals
2000 1999
654,269 912,454
235,548 - 235,548 -
109,701
1,000 43,565 44,565 30,236
63,173 236,551 634,658 934,382 1,052,391
Liabilities and Fund Balances
Liabilities:
Accounts payable 2,896 71,851 43,895 118,642 54,181
Deferred revenue
9'796
Due to other funds 8,912 164,697 173,609 70,296
Total liabilities 11,808 236,548 43,895 292,251 134,273
Fund balances - unreserved - designated
for capital improvements 51,365 3 590,763 642,131 918,118
S 63,173 236,551 634,658 934,382 1,052,391
0
iI
I
I I
Levenues:
244,571
189,902) 100,000)
Capital Project Funds
Federal grants
1,181
State grants
Combining Statement of Revenues, Expenditures
Investment income
51,365
Other
Total revenues
Expenditures:
Year Ended December 31, 2000
Salaries and employee benefits
Contracted services
with Comparative Totals for Six -Month Period Ended December 31, 1999
Equipment
Land
Supplies
Pass- through payments
Information
Other services and charges
Total expenditures
Exhibit 1 -2
CITY OF SEWARD
244,571
189,902) 100,000)
Capital Project Funds
144,571
1,181 785,607
Combining Statement of Revenues, Expenditures
925,085
51,365 3
and Changes in Fund Balances
642,131 918,118
Year Ended December 31, 2000
with Comparative Totals for Six -Month Period Ended December 31, 1999
Library
Other Information Totals
Parks and Public General and Six Months)
Recreation aak!y Government TechnolM 2000 1999
303,606 - 303,606
68,492 6,310 99,274 4,421 178,497 313,260
20,732 20,732 19,200
34,197 34,197
68,492 309,916 154,203 4,421 537,032 332,460
16,647 11,485 - 608 28,740 17,831
69,044 286,791 306,576 662,411 126,114
2,183 116,012 6,107 124,302 88,650
155,089 155,089 51,096
40,154 1,146 4,428 7,519 53,247 23,572
99,274 99,274 149,826
11,627 9,489 31,406 1,172 53,694 26,909
137,472 311,094 712,785 15,406 1,176,757 483,998
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
Beginning fund balances
Ending fund balances
t
68,980) (1,178) (558,582) (10,985) (639,725) (151,538)
553,640
189,902)
363,738
553,640 244,571
189,902) 100,000)
363,738 144,571
68,980) 1,178) 194,844) 10,985) (275,987) 6,967)
120,345 1,181 785,607 10,985 918,118 925,085
51,365 3 590,763 642,131 918,118
67
Assets
Cash and investments
Liabilities and Fund Balances Deficit
Liabilities;
Accounts payable
Due to other funds
Total liabilities
Exhibit 1 -3
CITY OF SEWARD
Parks and Recreation Capital Project Funds
Combining Balance Shtet
December 31, 2000
Campground
ADA and City
Gateway Bike Path Waterfront Flay- Hobert
Subdivision Continuation Ballfield 1m ro _p_ vements oQrundsParkTotals
2,438 1,874 951 7,916 49,994 63,173
1,947 - -
8,912 - -
10,859 - -
949 - 2,896
8,912
949 - 11,808
Fund balances (deficit) - unreserved -
994 51,365
designated for capital improvements (10,859) 2,438 1,874 951 6,967 49,
2,438 1,874 951 7,916 49, 99 4 63,1773
68
Exhibit 1-4
Crr, Y OF SEWARD
Parks and Recreation Capital Project FundstCombiningStatementofRevenues, Expenditures
and Changes in Fund Balances (Deficit)
Year Ended December 31, 2000
Campground
ADA and City
Gateway Bike Path Waterfront Play- Hoben
Subdivision Continuation Ballfield Improvements oRrundsParkTotals
Rues 1,268 5,227 68,492StategrantsS15,707 46,290 -
E ditures:
laries and employee benefits 4,750 1,501 - 7,244 3,113 39 16,647
Contracted services 778 46,056 9,713 1 1,701 796 69,044
pplies 11,371 2,244 - 12,224 8,705 5,610 40,154
her services and charges 1,690 4,980 - 3,131 1,261 565 11,627
Total expenditures 18,589 54,781 9,713 34,300 13,875 6,214 137,472
Excess of revenues
over(under)expenditures 2,882) (8,491) (9,713) 33,032) 13,875) 987) 68,980)
Binning fund balances (deficit) 7,977) 10,929 11,587 33,983 20,842 50,981 120,345
B m. g fund balances (deficit) 10,859) 2,438 1,874 951 6,967 49,994 51,365
rte
li
69
CITY OF SEWARD
Public Safety Capital Project Funds
Combining Balance Sheet
December 31, 2000
Assets
Cash and investments
Receivables:
Federal grants
Other
Liabilities and Fund Balances
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund balances - unreserved - designated
for capital improvements
70
Exhibit 1 -5
911
Flood Equipment
Mitigation Renlacement Totals
3 3
235,548 235,548
1,000 - 1,000
236,548 3 236,551
71,851 71,851
164,697 164,697
236,548 236,548
3 3
S 236,548 3 236,551
Exhibit 1 -6
CITY OF SEWARD
Public Safety Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended December 31, 2000
Firehose 911
Replace- Flood Equipment
ment Mitigation Replacement Totals
Revenues:
Federal grants 303,606 303,606
State grants 1,935 4,375 6,310
Total revenues 1,935 303,606 4,375 309,916
Expenditures:
Salaries and employee benefits 1 1,485 11,485
Contracted services 282,862 3,929 2$6,791
Equipment 2,183 2,183
Supplies 126 1,020 1,146
Other services and charges 109 9,133 247 9,489
Total expenditures 2,292 303,606 5,196 311,094
Excess of revenues
over(under)expenditures (
357) 821) 1,178)
Beginning fund balances 357 - 824 1,181
Ending fund balances 3 3
r
71
hxjiibit T -7
CITY OF SEWARD
Other General Government Capital Project Funds
Combining Balance Sheet
December 31, 2000
72
Seward
Association City Hall
for
Firehall Street Facilities
Advancement
of Marine Capital Streets and Hospital Roof Improve- and
Totals
5cien Accuisili 1tf0115 Constt MigO &1LTMk Reosir menu fiQUJID
S - 206„278 5,542 320.133 8,995 34,737 878 14,530 591,093
43.565Cashandinvestments
43,565
Other receivables
S 43,565 206,278 5,542 32 0.133 8,999 34,737 878 14,530 634.658
Ulu m Fun_ d B 1at1M
330 43,895
Liabilities - accounts payable
43,565
Fund balances - unreserved - designated 206,278 5,542 320,133 8,995 34,407 878 14,530 590,76
for capital improvements
S 43,565 206,278 5,542 320,133 8,945 34.737 978 14,530 634.658
72
1
Revenues:
State grants
Investment income
Other
Total revenues
Expendit urt:V
Conm cted services
Equipment
Land
Supplies
Pau- through payments
Other services and charges
Total expendit=$
Excess of revenues
over(under)expenditures
Other frnsnciog 'auccs (uses):
Operating transfers from other funds
Operating transfers to Other funds
Net other financing scurces (uses)
Excess of revenues and other
financing sources over (under)
expenditures and other uses
Beginning fund balances
Ending fund balances
1
CITY OF SEWARD
Other General Government Capital Project Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended December 3l. 2000
Seward
Association
City Hallfor
Advancement
Fitehall Street Facilities
orMarine Capital Streets and Hospital Roof Improve- and
wence Asaf gp wa Construction Fuel gsm meals
S 99,274 -
13.354 20,843
732 20,000
100,006 33,354 20,843
4,275
116.012
155.089
99,274
732
100,006 155,089 120,287
Exhibit -8
99.274
34.197
20,732
154.203
1.345 55,202 245,754 306.576
1,480)
116.012
155.089
4,428 4,428
60,000
99,274
135 5,963 24.576 31,406
1,480 65,593 270,330 712,785
121,735) (99,444) (1,480) (65.593) (270,330) - (558,582)
227.902 40,000 271,208 14.530 553.640
189.902) (
189,902)
38.000 40,000 271,208 14,530 363,738
83,735) 9044) 1,480) 25.593) 878 14.530 (194.844)
290,013 5,542 419,577 10,475 60,000 785.607
206,279 5,542 320,133 8,995 34,407 878 14,530 590,763
73
THIS PAGE LEFT BLANK INTENTIONALLY I
74 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.
Electric — To account for the provision of electrical service to the residents of the
City and other areas within the electric service area.
Water and Sewer — To account for the provision of water and sewer services to the
residents of the City.
Harbor — To account for the provision of harbor and marine services within the
Small Boat Harbor basin to the public.
Seward Marine Industrial Center (SMIC) — To account for the provision of marine-
related services to the public on the east side of Resurrection Bay.
Parking Revenue — To account for the provision of public parking services.
75
Exhibit 3 -1
CITY OF SEWARD
Enterprise Funds
Combining Balance Sheet
December 31, 2000
with Comparative Totals for December 31,1999
76
1
1
1
1
1
1
1
1
1
1
1
1
1
1
water
Totals
Assets Electric ano Sewer Harbor SMiC Parkin 2900 1999
Current assets:
S 4,480,544 1,875,403 4,106,$28 105,826 65,953 10,634,604 10,1
Cash and investments
Receivables:
62D,059 101,342 213,103 34,002 968,506 1,007,764
Accounts 4,494 4,484 9,032
Grants
24,912 3,007 1,072 28,991 3,656
Other
Less allowance for doubtful receivables
28,464} 4,560) 21,637) 55,161)
946,820
63,882)
956,570
Net accounts receivable
616,007 99,789 197,022 34,002
155,000 155,500
Cash held by fiscal agent
155,000
490,542 26,757
517,299 554,618
Inventory
5,742,143 2,001,949 4,303,850 139,828 65,953 12,253,723 11,819,
Total current assets
Restricted assets - cash and investments restricted 555,723 307,205
for bond retirement
307,205 248,518
91,975 141,914 61,079 294,968 279,903
Assessments receivable
Property, plant and equipment:
39,$43,944 15,050,698 9,087,531 52,! 59,567 438,062 116,579,822 1 16,039,139
Property, plant and equipment in serviceperty, plant and 17,553,947) 6,887,259) 2,621,500) 17,774,243) 288,376) 45,125,325) 41,039,560)
Less
and equipment in service 22,289, 997 163,439 6,466,031 32474,J85 - 144,706 71,454,497 74,999,579
454,725Netproperty, plant
2,193,332 340,871 3,323,989 5,858,192
Construction in progress
and equipment 24,483,329 8,504,310 9,790,020 34,385,324 149,706 77,312,689 75,454,304
Total property, plant
Deferred charges - unamortized debt issuance costs 26,106 17,012 43,118 51,188
S 30,650,758 10,648,173 14,403,467 34,542,164 215,659 9046,221 87,912.022
76
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Fb=--
i&hijities.,
Accounts payable
Current portion:
Bonds payable
Notes payable
Capital lease obligations
Retirement incentive program payable
ustomer deposits
ed "
its
Accrued interest
other accrued liabilities
DefernA revenue
Due to other funds
Total current liabilities
CITY OF SEWARD
Enterprise Funds
Combining Balance Sheet, continued
Water
Etc and Sewer Ha iMK
594,510 47,220 338,579 4,075
M, :.I
Totals
Parkirte 2M IM
90 984,474 240,957
760,000
4,480,OOD
139,995 899,995 835,878
46,118
deferred amount on refunding
46,118 40,636
70,000 70,000 65,000
9,658 10,661 20,319 22,978
143,319
143,319 150,096
48,352 14,361 40,708 103,421 110,361
46,676 5,002 8,366 12,789 72,833 77,916
18,808 8,132 35,963 1,838 42 64,783 42,239
458,559 7,000 465,559 3,702,569
5,969,648 807,874
20,688
1,61665 130,,491 892,836 235,697 132 2,87021, 5,309,318
FfaTed revenue - Alaska Railroad Corporation
73,622 73,622 ,312
oan receivable
g -teen debt, excluding current portiOtl:
Bonds payable
4,480,OOD 3,400 =000 1,441,728
112.858}
8,521,728
234,875)
6,421,723
277,438)
deferred amount on refunding 122,017) 713,842Lessu,uwrucd 667,726 667,726
Motes payable 340,000 340,000 410,0W
Capital lease obligations
657 10,66!
20,318 21,321
Retirement incentive program payable
4T 357.983 7677.383 3410 661 1,268 =870 9,314,897 7,289,848
Total long -term debt
5,969,648 807,874 3,977.119 1,504.567 132 12,259,340 12,706,478
Total liabilities1
Fund equity:
24, 11,827,294 9,613,617 49,810,682 376,174 95,731,438 91,652,56
Contributed capit24,103,666
8 105,973 5,839,578) 11519,709) 16 253,204 i283 32,001,801 28 720,845
Less accumulated amor cation
15,997,693 5,987,721 8,093,908 33,557,478 92,829 63,729,629 62,931,717
Net contributed capital
Retained earnings (deficit) - unreserved 8,683,417 3,852,578 2,332,440 519 881 122,698 14,471,252 12,273,827
Total fund equity 24^ 68110 9 810 299 10,426,348 33,037,597 215,527 78,200,881 75,20„5.544
S 30,650,758 10,648,173 14,403.467 34, ,542 164 215,659 90_ 460,221 87,912,022
Li
1
77
7,
u
e
THIS PAGE LEFT BLANK INTENTIONALLY I
78 1
ENTERPRISE FUNDS
1 The Enterprise Funds are established to account for the financing of self -
supporting activities of governmental units which render services to the
general public on a user- charge basis. Enterprise Funds are maintained
on the accrual basis of accounting.
n
F
7
I
tcrating revenues
Operating expenses
CITY OF SEWARD
Enterprise Funds
Combining Statement of Revenues,
Expenses and Changes in Retained Earnings (Deficit)
Year Ended December 31, 2000
with Comparative Totals for Six -Month Period Ended December 31, 1999
Earnings from operations before
depreciation
Ilepmciation
Earnings (loss) from operations
lonoperating revenues (expenses):
Gain (loss) on disposal of property and equipment
Investment income
Interest expense
Otherrevenues
Net nonoperating revenues (expenses)
Earnings (loss) before operating
transfers
tperating transfers from other funds
Operating transfers to other funds
Net operating transfers
Net earnings (loss)
Exhibit J -2
ncrewe (decrease) in retained earnings for corrections
to contributed capital and accumulated depreciation
Amortization of contributed capital
Increase (decrease) in retained eamings
feginning retained earnings
esidual equity transfers to other funds
Ending retained earnings (deficit)
1
407,024 70,834 (65,724) (901,127) (3,970) (492,963) (118,083)
1,447,251 (1,335,658) - 111,593 9,733
788,531 298,769 335,091 1,113,815 42,589 2,578,795 1,235,438
1,195,555 369,603 1,716,618 (1,122,970) 38,619 2,197,425 1,127,088
7,487,862 3,482,975 615,822 603,089 84,079 12,273,827 11,573,710
426,971)
S 8,683,417 3,852,578 2,332,440 (519.881) 122,698 14,471,252 12,2! 73
79
totals
Water Six Months)
Electric and Sew 13 attror SM1C Parking 200Q 1999
S 6,467,005 1,461,305 1,508,524 453,449 121,592 10,011,975 5,096,302
4,682,211 1,031,485 1,230,585 280,770 85,989 7,311.040 3,451,997
1,784,794 429,820 277,939 172,679 35,603 2,700,835 1,644,305
1,234,373 377,101 397,992 1,232,863 43,813 3,2 85,142 1,574,424
550,421 52,719 20,053) 1,060,184) 8,210) 585,307) 69,881
301 301 10,617)
233,757 102,470 186,488 10,564 4,240 537,519 295,699
346,252) 32,315) 124,254) 502,821) 268,178)
4,098 24,800 28,898 101
108,397) 94,955 186,789 113,690) 4,240 63,897 17,005
442,024 147,674 66,736 1,173,874) 3,970) 521,410) 86,686
285,133 285,133 279,986
35,000) 76,840) 132,460) 12,386) 256,686) 484,955)
35,000) 76,840) 132,460) 272,747 28,447 204,969)
ncrewe (decrease) in retained earnings for corrections
to contributed capital and accumulated depreciation
Amortization of contributed capital
Increase (decrease) in retained eamings
feginning retained earnings
esidual equity transfers to other funds
Ending retained earnings (deficit)
1
407,024 70,834 (65,724) (901,127) (3,970) (492,963) (118,083)
1,447,251 (1,335,658) - 111,593 9,733
788,531 298,769 335,091 1,113,815 42,589 2,578,795 1,235,438
1,195,555 369,603 1,716,618 (1,122,970) 38,619 2,197,425 1,127,088
7,487,862 3,482,975 615,822 603,089 84,079 12,273,827 11,573,710
426,971)
S 8,683,417 3,852,578 2,332,440 (519.881) 122,698 14,471,252 12,2! 73
79
CITY OF SEWARD
Enterprise Funds
Combining Statement of Cash Flows
Year Ended December 31, 2000
with Comparative Totals for Six -Month Period Ended December 31, 1999
Cash flows from operating activities:
Earnings (loss) from operations
Adjustments to reconcile earnings (loss) from
operations to net cash flows from operating
activities:
Depreciation
Other nonoperating revenues
Increase (decrease) in allowance for
doubtful receivables
Increase) decrease in assets:
Receivables
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 from other funds
Operating transfers to other funds
Operating grants received
Residual equity transfers to other funds
Net cash flows from noncapital
financing activities
xhibit 3 -3 1
Totals
Water (
Six Months)
I[L and ewer Harbor SM1C Parkin 2000 1999
550,421 52,719 (120,053) (1,060,184) (8,210) (585,307) 69,881
1,234,373 377,101 397,992 1,232,863 43,813 3,286,142 1,574,4233,509 3,
509
2,855) 598) 5,268) 8.721) 13,533
65,773 62,454) 19,704 1,713) 21,310 186,615
37,755 436)
37,319 8,549
405,795 34,623 306,457 484 3,842) 743,517
41366) 6,777)
6,777)
10,739) 764 3,035 6,940) 1,158)
39,243) 2,374 20,281 735 42 15,811)
20,688)
5,743
26.025) 20,688)
16,208) 17,328) 33,536) 14,610
19,315 77) 3,662) 19,665
2,238,012 423,408 582.963 134,169 317803 3,410,355 1,7 98,274
285,133 285,133 279,986
35,000) 76,840) 132,460) 12,386) 254'886)
484,955)
24,800 50,797)
35,000) 52,040) 132,460) 272,747 53,247 5 5,766)
80
C
L'
II
L
I
I
I I
CITY OF SEWA"
Enterprise Funds
Combining Statement of Cash Flows, continua!
ash flows from capital and related financing activities:
Decrease in due from other funds $
Proceeds from issuance of long -term debt
Principal payments on long -term debt
Interest payments on long -terns debt
Cash held by fiscal agent
Acquisition of property, plant and equipment
Collections on special assessments
Proceeds from sale of property and equipment
Contributed capital
Decrease in deferred revenue
Penalties and interest on special assessments
Net cash flows from capital
and related financing activities
ash flows from investing activities -
investment income received
INet increase (decrease) in cash and investments
Beginning cash and investttu.rris
Uding cash and investments
Reconciliation of cash and investments to balance sheet:
Cash and investments:
Current assets
Restricted assets
Exhibit 1.3. continued
1 S 4,787,799 1,875,403 4,355,346 105,826 65,953
Totals
Noncash capital and related financing activities:
water Six Months)
Electric and Sew Harbor SMIC Parkin 2000 1994
10,715
Corrections and reclassifications - increase (decrease) to:_
46,713
3,0(1,8,366 3,008,366
765,978 -
700,000) 40,634)
S
200,878) 941,512) 665,771)
286,355) 32,604)
255,398)
108,723) 427,682) 267,158)
500
1,447,251 1,335,658) - 111,593
500 155,500)
2,458,138) 350,106) 3,038,300) 2,053) 61,908) 5,910,505) 458,374)
22,992 19,075 2,142 44,209 2,632
301 301
1,144,221 11,050 3,036,894 4,192,165 513,519
207,766) 3,029,398) 3,237,164) 6,681)
589 589 98
2,483,957) 393,219) 19,995) 311,654) 61,908) 3,270,733) 990,522)
233,757 102,470 186,488 10,564 4,240 537,519 295,699
47,188) 80,619 616,996 105,826 25,865) 730,388 847,685
4,834,987 1,794,784 3,738,350 91,818 10,459,939 9,612,254
S 4,787,799 1,875,403 4,355,346 105,826 65,953 11,190,327 10,459,939
4,480,594 1,875,403 4,106,828 105,826 65.953 10,634,604 10,152,734
307,205 248,518 555,723 307,205
1 S 4,787,799 1,875,403 4,355,346 105,826 65,953 11,190,327 10,459,939
Noncash capital and related financing activities:
lncrease in contributed capital and deferred 62,113 277,271
assessments receivable 5 36,090 15,308 10,715
Corrections and reclassifications - increase (decrease) to:_
Accumulated depreciation
765,978 - 765,978 -
Contributed capital S 1,702,649) (!,702,649) 1,527,247
957,567
175,402) 48,220
102,169
T
Accumulated amortization 1; 255,398)
Retained earnings
1,447,251 1,335,658) - 111,593
8!
CITY OF SEWARD
Electric Enterprise Fund
Balance Sheet
December 31, 2000
with Comparative Amounts for December 31, 1999
Assets 2000
Exhibit
1999
Current assets:
Cash and investments $
4,480,594 4,527,782
Receivables:
Accounts
620,059 707,088
24,912 3,656
Other
Less allowance for doubtful receivables (28,964) (31,819)
Net receivables
616,007 678,925
Cash held by fiscal agent
155,000 155,500
Inventory
490,542 528,297
Total current assets
5,742,143 5,890,504
Restricted assets - cash and investments restricted
for bond retirement
307,2Q5 307,205
Assessments receivable
91,975 78,877
Property, plant and equipment: 39,843,944 39,387,732
Property, plant and equipment in service
Less accumulated depreciation 17,553,947) 16,276,762)
Net property, plant and equipment in service 22,289,997 23,110,970
Construction in progress 2,193,332 148,594
Total property, plant and equipment
24,483,329 23,259,564
Deferred charges - unamortized debt issuance costs 26,106 31,908
30,650,758 29,568,058
82
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 unaortized deferred amount on refundingm
1 Net long -term debt
Total liabilities
Fund equity:
Contributed capital
Less accumulated amortization
1 Net contributed capital
Retained earnings - unreserved
Total fund equity
1
83
Exhibit J -4 continued
2000 1999
594,510 188,715
760,000 700,000
143,319 150,096
48,352 59,091
46,676 19,696
18,808 58,051
207,766
1,611,665 1,383,415
4,480,000 5,240,000
122,017) 149,132)
4,357,983 5,090,868
5,969,648 6,474,283
24,103,666 22,923,355
8,105,973) 7,317,442)
15,997,693 15,605,913
8,683,417 7,487,862
24,681,110 23,093,775
S 30,650,758 29,568,058
CITY OF SEWARD
Electric Enterprise Fund
Statement of Revenues, Expenses
and Changes in Retained Earnings
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
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
Nonoperating 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
Increase in retained earnings for reclasses from contributed capital
Amortization of contributed capital
Increase in retained earnings
Beginning retained earnings
Ending retained earnings
84
Exhibit J -5
2,682,188
Six Months)
2000 1999
1,910,509 904,881
1,237,376 639,862
2,612,133 1,404,185
347,791 160,074
113,958 48,966
66,546 31,485
178,692 72,821
6,467,005 3,262,274
2,682,188 1,092,957
274,425 207,410
1,725,598 907,823
4,682,211 2,208,190
1,784,794 1,054,084
1,234,373 608,238
550,421 445,846
10,617)
233,757 139,852
346,252) 185,641)
589 98
3,509 3
108,397) 56,305)
442,024 389,541
35,000) 317,500)
407,024 72,041
2,100
788,531 392,451
1,195,555 466,592
7,487,862 7,021,270
8,683,417 7,487,862
Cash 11ows from noncapital financing activities -operating transfers to other funds
31735,000 ,500
Cash flows from capital and related financing activities: 7A0,000)
Exhibit J-6
crn(OF SEWARD
286, 174,348 )
Electric Enterprise Fund
500500 155,500)
Statement of Cash Flows
2,458,138) 234,733)
Year Ended December 31, 2000
22,992 2,632
with Comparative Amounts for Six -Month Period Ended December 31, 1999
1,144,221 83,350
Six Months)
6,681)
2000 1999
589
Cash flows from operating activities:
Earnings from operations
550,421 445,846
2,483,957
Adjustments to reconcile earnings from operations to net
Net cash flows from capital and related financing activities
cash flows from operating activities: 1,234.373 608,238
233,757
Depreciation 3,509 3
47,188)
Other nonoperating revenues
Decrease in allowance for doubtful receivables
2,855) 401)
4,834,987
increase) decrease in assets: 65,773 6,042
Receivables
37,755 1,372)
4,7i $799
Inventory
Ending cash and investments
Increase (decrease) in liabilities:
Accounts payable
405,795 16,499)
6,777) 41,366)
Customer deposits
10,739) 6,421
Accrued annual leave 3g,243 7,501
Other accrued liabilities
2,23 8,012 1, 014,413
Net cash flows from operating activities
Cash 11ows from noncapital financing activities -operating transfers to other funds
31735,000 ,500
Reconciliation of cash and investments to balance sheet:
Cash and investments: 4,480,594 4,527,782
Current assets 307,205 307,205
Restricted assets
4,7799, 4,8r, 34_
Noncash capital and related financing activities: $ 36,090 76,245
Increase in contributed capital and assessments receivable — —
85
Cash flows from capital and related financing activities: 7A0,000) 435,000)
Principal payments on long -term debt 286, 174,348 )
Interest payments on long -term debt 500500 155,500)
Cash held by fiscal agent
Acquisition of plant and equipment
2,458,138) 234,733)
property, 22,992 2,632
Collections on special assessments 1,144,221 83,350
Contributed capital 207,766) 6,681)
Decrease in deferred revenue 589 98
Penalties and interest on special assessments
2,483,957 920,182
Net cash flows from capital and related financing activities
Cash flows from investing activities - investment income received
233,757 139,852
Net decrease in cash and investments
47,188) 83,417)
4,834,987 4,918,404
Beginning cash and investments
4,7i $799 4,834,987
Ending cash and investments
Reconciliation of cash and investments to balance sheet:
Cash and investments: 4,480,594 4,527,782
Current assets 307,205 307,205
Restricted assets
4,7799, 4,8r, 34_
Noncash capital and related financing activities: $ 36,090 76,245
Increase in contributed capital and assessments receivable — —
85
Exhibit J -7 1
CITY OF SEWARD
Electric Enterprise Fund
Schedule of Operating Expenses
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
Six Months)
2000 1999
Power:
Salaries and employee benefits
53,121 i 7,412
Purchased services
218,785 25,937
Power for resale
2,287,506
122,676
1,034,447
15,161
Supplies, maintenance and other
Total power
2,682,18$ 1,092,957
Distribution:
Salaries and employee benefits
285,979 138,254
Salary credits -work orders
176,791) 67,673)
Purchased services
56,534 45,531
Supplies and maintenance
297,273 166,927
Supply credits - work orders
190,858} 77,581)
Administration and general
2,288 1,952
Total distribution
274,425 207,410
Administration and general:
306,168 170,917
Salaries and employee benefits
Purchased services
205,194
130,
9Q,084
59,344
Supplies and maintenance
511,101 260,972
Payment in lieu of taxes
486,768 247,326
Administrative fee
86,049 79,180
Other
Total administration and general
1,725,598 9
Total operating expenses
2 2114,6,,.= 2,208,190
86
Exhibit J -8
CITY OF SEWA"
Electric Enterprise Fund
Schedule of Electric Capital Projects
Year Ended December 31, 2000
1
Standby
Electric
Generator
Funding sources:
State grant 1,078,566
Electric funds 966,172
Total funding sources 2,044,738
Expenditures:
Salaries and employee benefits 31,612
Contractual services 863,817
Supplies and materials 963,158
Other services and charges 186,151
Total expenditures 2,044,738
1
1
1
87
x i it i•9
CITY OF SFWARD
Water and Sewer Enterprise Fund
Balance Sheet
December 31, 2000
with Comparative Amounts for December 31 , 1999
Assets
2wo
Current assets: 5 1,875,403 I 794,784
Cash and investments
47,220 12,597
Receivables: 101,342 40,128
Accounts 1,767
Assessments 1,240
Other
Less allowance for doubtful receivables
4,560) 5,158)
Accrued annual leave
99,789 34,970
Net receivables
9,132 5,758
Other accrued liabilities
26,757 26,321
Inventory 2,001,949 1,8.56,075
Total current assets
667,726 713.842
Notes payable
141,914 147,448
Assessments receivable
677,383 713,942
Property, plant and equipment: 15,050.698 15,021,02!
property, plant and equipment in service 6,887,259) 510,
Less accumulated depreciation
8,163,
871
88,510,886262
Net property, plant and equipment in service 340,87 l 20.442
Construction in progress
8,504,310 8,531,304
Total prop, plant and equipmenterty
5 987,721 6,260,131
Net contributed capital
5 10,648,173 10,534,827
Liabililic§ and Find
Liabilities:
Current liabilities: 47,220 12,597
Accounts payable
Current portion: 46,118 40,636
Notes payable 9.658
Retirement incentive program payable 14,361 13,597
Accrued annual leave 5,002 5,291
Accrued interest 9,132 5,758
Other accrued liabilities
130,491 77,879
Total current liabilities
Long -term debt, excluding current portion: 667,726 713.842
Notes payable 9,657
Retirement incentive program payable
677,383 713,942
Total long -term debt
807,874 791,721
Total liabilities
Fund equity: 11,827,299 11,800,940
Contributed capital 5,839,578) L 540,8491
Less accumulated amortization
5 987,721 6,260,131
Net contributed capital
3,852,578 3.482,975
Retained earnings - unreserved
9,840,399 9,743,106
Total fund equity
S 10,649,173 10,'827
88
t
Exhibit f -10
CITY OF SEWARD
Water and Sewer Enterprise Fund
Statement of Revenues, Expenses
and Changes in Retained Earnings
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
Six Months)
2W0 1999
Operating revenues;
S 581,698 288,620
Residential
Small general service
142, 73,018
Large general service
284,0088 8 151,437
Industrial
133,158 71,570
Seward Marine Industrial Cent -r 124,521 59,578
Ship water salts
126,467
68,930
89,369
41,615
Miscellaneous
Total operating revenues
1,461,305 775,207
Operating expenses:
DistributionD
86,832
944,653
42,2b0
432,068
Administration and general
Total operating expenses
1,031,485 474,328
Earnings from operations before depreciation 429,820 300,879
377,101 183,835
Depreciation
Earnings from operations
52,719 117,044
Nonoperating revenues (expenses):
Investment income
f 02,470
32,315)
49,431
17,007)
Interest expense
24,800
Grants
Net nonoperating revenues (expenses)
94,955 32,424
Earnings before operating transfers
147,674 149,468
Operating transfers from other funds
29,495
Operating transfers to other funds
761840) 106,335)
Net operating transfers
76,840) 76,840)
Net earnings
70,834 72,628
Increase in retained earnings for reclasses from contributed capital 48,220
Amortization of contributed capital
298,769 146,729
Increase in retained earnings
369,603 267,577
Beginning retained earnings
3,482,975 3,216,904
Residual equity transfers to other funds
1 506
Ending retained earnings
S 3,852,578 3,482,975
89
Exhi— it– I I I
CITY OF SEWARD
Water and Sewer Enterprise Fund
Statement of Cash Flows
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
Cash flows from operating activities:
Earnings from operations
Adjustments to reconcile earnings from operations
to net cash flows from operating activities:
Depreciation
Decrease in allowance for doubtful receivables
Increase) decrease in assets:
Receivables
Inventory
Increase (decrease) in liabilities:
Accounts payable
Accrued annual leave
Retirement incentive program payable
Other accrued liabilities
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Operating transfers from other funds
Operating transfers to other funds
Operating grants received
Residual equity transfers to other funds
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities:
Decrease in due from other funds
Principal payments on long -term debt
Interest payments on long -term debt
Acquisition of property, plant and equipment
Collections on special assessments
Contributed capital
Net cash flows from capital and related financing activities
Cash flows from investing activities - investment income received
Net increase in cash and investments
Beginning cash and investments
Ending cash and investments
Noncash capital and related financing activities:
Increase in deferred assessments receivable recorded for water
and sewer improvements
90
Six Months)
2000 1999
S 52,719 117,044
377,101 183,835
598) 2,129)
62,454) 58,799
436) 9,921
34,623 6,310)
764 1,100
19,315
2,374 568
423,408 362,828
29,495
76,840) (106,335)
24,800
1,506)
52,040) (78,346)
46,713
40,634) 39,012)
32,604) 34,291)
350,106) 160,958)
19,075
11,050 124,645
393,219) 62,903)
102,470 49,431
80,619 271,010
1,794,784 1,523,774
1,875,403 1,794,784
S 15,308 147,448
t
1
Distribution:
Salaries and employee benefits
Purchased services
Supplies and maintenance
Total distribution
Administration and general:
Salaries and employee benefits
Purchased services
Supplies and maintenance
Payment in lieu of taxes
Administrative fee
Other
Total administration and general
Total operating expenses
91
Exhiit J-12
Six Months)
2000 1999
34,334 14,722
49,347
CITY OF SEWARD
rWater and Sewer Enterprise Fund
86,832
Schedule of Operating Expenses
21 5,455
Year Ended December 31, 2000
21,418
with Comparative Amounts for Six -Month Period Ended December 31, 1999
1
Distribution:
Salaries and employee benefits
Purchased services
Supplies and maintenance
Total distribution
Administration and general:
Salaries and employee benefits
Purchased services
Supplies and maintenance
Payment in lieu of taxes
Administrative fee
Other
Total administration and general
Total operating expenses
91
Exhiit J-12
Six Months)
2000 1999
34,334 14,722
49,347 23,671
3,151 3,867
86,832 42,260
220,078 92,525
298,259 111,712
72,702 36,203
116,741 62,017
21 5,455 11 6,773
21,418 12,838
944,653 432,068
1,031,485 474,328
Exhibit J -13
CITY OF SEWAR.D
Water and Sewer Enterprise Fund
Combining Schedule of Water and Sewer Capital Projects
Year Ended December 31, 2000
Forest
Backup Acres Water
Wellhouse #2 Generator Water Well #6 Totals
Funding sources: - 24,800
State grants $
T
Water and sewer funds 6,501 7,232 87,874 313,197 4 14,804
Total funding sources $
6,501 7,232 112,674 313,197 4 04
Expenditures;
3,117 3,117
Salaries and benefits 604 102,431 282,205 385,240
Contracted services
5,910 2,854 2,520 11,284
supplies
591 657 10,243 28,472 39,96
Other services and chargesO
6,501 7,232 112,674 313,197 4„_ 3^ g,6044
Total expenditures
92
Liabilities:
Current li
Account
Current
Accrued
Accrued
Other ac
Deferred
Deferred
Long -term
Bonds
Retirem
Fund equt
Contrib
Less
Retained
1
abilities:
s payable
338,579 32,122
portion of retirement incentive program payable 10,661 22,978
annualleave
40,708 37,673
interest 8,366
crued liabilities 35,963 15,682
revenue
458,559 3,470,475
Total current liabilities 892,836 3,578,930
revenue - Alaska Railroad Corporation loan receivable 73,622 107,312
debt, excluding current portion:
payable
3,000,000 -
ent incentive program payable 10,661 21,321
Total long -term debt 3,010,661 21,321
Total liabilities 3,977,119 3,707,563
ty:
used capital
9,613,617 8,268,658
accumulated amortization
1,519,709 (1,440,016)
a
JExhibit -14
CITY OF SEWARD
Harbor Enterprise Fund
Balance Sheet
December 31, 2000
with Comparative Amounts for December 31, 1999
Assets 2000 1999
Current assets:
S 4,106,828 3,738,350Cashandinvestments
RecelYables:
Accounts 213,103 228,259
4,484 9,032
Grants
Assessments 1,072
Less allowance for doubtful receivables 21,637 26,905
Net receivables 197,022 210,386
Total current assets 4,303,850 3,948,736
Restricted assets - cash and investments restricted for bond retirement 248,518
Assessments receivable 61,079 53,578
Property, plant and equipment:
2,332,440 615,822
Property, plant and equipment in service 9,087,531 9,096,698
Less accumulated depreciation 2,621 500 ) 2,232,674
Net property, plant and equipment in service 6,466,031 6,864,024
Construction in progress 3,323,989 285,689
Total property, plant and equipment 9,790,020 7,149,713
S 14,4 67 11,1 52.027
i'
Liabilities:
Current li
Account
Current
Accrued
Accrued
Other ac
Deferred
Deferred
Long -term
Bonds
Retirem
Fund equt
Contrib
Less
Retained
1
abilities:
s payable
338,579 32,122
portion of retirement incentive program payable 10,661 22,978
annualleave
40,708 37,673
interest 8,366
crued liabilities 35,963 15,682
revenue
458,559 3,470,475
Total current liabilities 892,836 3,578,930
revenue - Alaska Railroad Corporation loan receivable 73,622 107,312
debt, excluding current portion:
payable
3,000,000 -
ent incentive program payable 10,661 21,321
Total long -term debt 3,010,661 21,321
Total liabilities 3,977,119 3,707,563
ty:
used capital
9,613,617 8,268,658
accumulated amortization
1,519,709 (1,440,016)
a
93
Net contributed capital 8,093,908 6,828,642
earnings - unreserved
2,332,440 615,822
Total fund equity
10,426,348 7,444,464
S 14,403,467 11,1 52,0.27
93
CITY OF SEWARD
Harbor Enterprise Fund
Statement of Revenues, Expenses
and Changes in Retained Earnings
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
Ex---- hi - '
Six Months)
2000 1999
Operating revenues: S 864,788 507,301
Moorage 70,839 6,392
Wharfage 120,924 37,465
Boat lift fees 137,661 69,503
Power sales 244,919 104,155
Rentals and leases 69,393 70 ,8846
Miscellaneous 1,508,524 795,662
Total operating revenues
Operating expenses: P 8 341,676 178,272
Salaries 148,512 112,078
Employee benefits 236,397 112,151
Purchased services 100,863 49,255
Power for resale 59,076 24,014
Supplies and maintenance 344,061 139,486
Administration and general 1,230,585 615,256
Total operating expenses
277,939 180,406
Earnings from operations before depreciation
397,992 1, 9
Depreciation
120,053} 11,423)
Loss from operations
Nonoperating revenues (expenses): 301
Gain on disposal of property and equipment 186,488 100,864
Investment income 186,789 100,864
Net nonoperating revenues (expenses)
66,736 89,441
Earnings before operating transfers
funds
132,460) L54,037)
Operating transfers to other
65,724) 35,404
Net earnings (loss)
Increase (decrease) in retained eamings for reclass from contributed capital
1,447,251
335,091
40,587)
181,893
Amortization of contributed capital
1,716,618 176,710
Increase in retained earnings
615,822 1,294,838
Beginning retained earnings 430,261)
Residual equity transfer to establish separate SM1C Fund 425,465)
Residual equity transfers to other funds
2,332,440 615,822
Ending retained earnings
94
I
CITY OF SEWARD
Harbor Enterprise Fund
statement of Cash Flow$
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
x i 'A 3.16
Six Months)
2000 iM
Cash flows from operating activities:
LOSS from operations
120,053) 11.423)
loss from operations to net cashAdjustmentstoreconcile
flows from operating activities: 397,992 191,829
Depreciation
increase (decrease) in allowance for doubtful receivables
5,268) 16,063
1 increase) decrease in assets - receivables
19,704 144,982
increase (decrease) in liabilities. 306,457 1,735)
Accounts payable 3,035 8.679)
Accrued annual leave 20,281 1,975
Other accrued liabilities 16,208) 19,108
Deferredrevenue 22,977) 19,665
Retirement incentive program payable 582,96] 3T 1,785
Net cash flows from operating activities
Cash flows from noncapital financing activities: 132,460) 54.037)
Operating transfers to other funds 49,291)
Residual equity transfers to other funds 132 460) 103,328)
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities: 3,008,366
Proceeds from issuance of long -term debt 3,038.300) 62:683)
Acquisition of property, plant and equipment 301
Proceeds from sale of property and equipment 2,142
Collections an special assessments 3,036,894 305,524
Contributed capital 3.029.398)
Decrease in deferred revenue 19 995) 242,841
Net cash flows from capital and related financing activities
Cash flows from investing activities •investment income received
186,489 100,861
616,996 512,162
Net increase in cash and investments
3,738,35 0 3.126,188
Beginning cash and investments1 5 4,355,346 3.738.350
Ending cash and investments
Reconciliation of cash and investments to balance sheet:
Cash and investments: 5 4,106,928 3,738,350
Current assets 249,518
Restricted assets
5 4,355,346 3,738,350
Noncash capital and related financing activities:
Increase in contributed capital and deferred assessments receivable
S 10,715 53,578
corrections and mlassifrcations - increase (decrease) to: 5 (1,702,649) 48,220
Contributed capital
S (255 398)
Accumulated amortization 1,447,251
Retained earnings
Decrease resulting from transfer from Harbor to SM1C: 11,188)
Current assets and deferred debt issuance costs
S -
S 36,9 4
Net ro lent and equipmentproperty, p S
7.531)
84,845)
Current liabilities
S 1848 930)
Long -term debt S 34" 59468j)
Contributed capital
S - 430,261)
Retained earnings
Decrease in net property, plant and equipment transferred to Parking Enterprise Fund $
376,174)
95
1
x i 'A 3.16
Exhibit J -17
CITY OF SEWARD
Harbor Enterprise Fund
Combining Schedule of Harbor Capital Projects
Year Ended December 31, 2000
Expenditures:
Salaries and employee benefits
Harbor Harbor
3,560
Contracted services
Plaza Repair and
425,218
Supplies and materials
Renovation Renovations Totals
Funding sources:
810 279,150 279,960
State grants 7,495 3,029,398 3,036,893
Harbor funds 1,407 1,407
Total funding sources 8,902 3,029,398 3,038,300
Expenditures:
Salaries and employee benefits 3,252 308 3,560
Contracted services 2,069 423,149 425,218
Supplies and materials 2,771 2,326,791 2,329,562
Other services and charges 810 279,150 279,960
Total expenditures $ 8,902 3,029,398 3,038,300
96
Id
CITY OF SEWARD
Seward Marine Industrial Center Enterprise Fund
Balance Sheet
December 31, 2000
with Comparative Amounts for December 31, 1999
Asse
Current assets:
Cash and investments
Accounts receivable
Total current assets
property, plant and equipment in service
Less accumulated depreciation
Net property, plant and equipment in service
Deferred charges - unamortized debt issuance costs
t
is ilities a d ui
Liabilities:
Current liabilities:
Accounts payable
Current portion:
Bonds payable
Capital lease obligations
Accrued interest
Other accrued liabilities
Deferred revenue
Due to other funds
Total current liabilities
Long -term debt, excluding current portion:
Bonds payable
Less unamortixed deferred amount on refunding
Capital lease obligations
Total long -term debt
1
Total liabilities
Fund equity:
Contributed capital
Less accumulated amortization
Net contributed capital
Retained earnings (deficit) - unreserved
Total fund equity
97
2000 1999
S 105,826
34,002 32,289
139,828 32,289
52,159,567 52,157,514
17,774,243) 15,775,402)
34,385,324 36,382,112
17,012 19,280
S 34,542,164 36,433,681
4,075 3,591
139,995 135,878
70,000 65,000
12,789 14,574
1,838 1,103
7,000 24,328
20,688
235,697 265,162
1,041,728 1,181,723
112,858) 127,906)
340,000 410,000
1,268,870 1,463,817
1,504,567 1,728,979
49,810,682 48,283,435
16,253,204) 14,181,822)
33,557,478 34,101,613
519,881) 603,089
33,037,597 34,704,702
34,542,164 36,433,681
xhibitl -18
CITY OF SEWARD
Seward Marine Industrial Center Enterprise Fund
Statement of Revenues, Expenses
and Changes in Retained Earnings (Deficit)
Year Ended December 31. 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
Operating revenues:
Moorage
Wharfage
Boat lift fees
Storage
Rentals and leases
Power sales
Miscellaneous
Total operating revenues
Operating expenses:
Salaries
Employee benefits
Purchased services
Supplies and maintenance
Administration and general
Total operating expenses
Earnings from operations before depreciation
Depreciation
Loss from operations
Nonoperaung revenues (expenses):
Investment income
Interest expense
Net nonoperating revenues (expenses)
Loss before operating transfers
Operating transfers from other funds
Operating transfers to other funds
Net operating transfers
Net loss
Decrease in retained earnings for corrections to contributed capital
and accumulated depreciation
Amortization of contributcd capital
increase (decrease) in retained earnings
Beginning retained earnings
Residual equity transfer to establish separate SMIC Fund
Ending retained earnings (deficit)
98
Six Months)
53,743
1999
s 62,409 9,733
54,584 5,026
121,170 77,900
133,139 46,862
63,207 39,087
15,225
3,715 6,281
453,449 184,889
53,743 21,940
7,071 4,468
67,0797 17,344
77,202 37,322
75,557 39,642
280,770 120,716
172,679 64,173
1,232,863 565,420
113,690)
1,060,184) 501,247)
10,564 3,127
124,254) 65,530)
113,690) 62,403)
172,828
1,173,874) 563,650)
285,133 250,491
12,386) 7,083)
272,747 243,408
901,127) (320,242)
1,335,658)
1,113,815 493,070
1,122,970) 172,828
603,089
430,261
S (519,881) 603,089
Exhibit J -19 I
I
Exhibit 1-20
CITY OF SEWARD
Seward Marine Industrial Center Enterprise Fund
Statement of Cash Flows
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
Six Months)
2000 1999
Cash flows from operating activities:
Loss from operations
S 1,060,184) 501,247)
Adjustments to reconcile loss from operations to net cash
flows from operating activities:
1,232,663 565,420
Depreciation
Increase in assets - receivables
1,713) 24,906)
Increase (decrease) in liabilities:
Accounts payable
Other accrued liabilities 735735
5,32
3222
Due to other funds 20,688) 26,025)
Deferred revenueD
17'328) 4'498)
Net cash Flows from operating activities 134,169 3,743
Cash flows from noncapital financing activities:
Operating transfers from other funds 285,133 25,491
Operating transfers to other funds 12,385) 77,083)
Net cash flows from noncapital financing activities 272,747 243,408
Cash (lows from capital and related financing activities:
Principal payments on long -term debt 200,878) 191,759)
Interest payments on long -term debt 1 58,5!9)
Acquisition of property, plant, and equipment
2,
723)
2,053)
Net cash flows from capital and related financing activities 311,654) 250,278)
Cash flows from investing activities - investment income received 10,564 3,127
Net increase in cash and investments 105,826
Beginning cash and investments
Ending cash and investments S 105,826
tNoncash capital and related financing activities:
Corrections and reclassifications - increase (decrease) to
Accumulated depreciation
765,978
Contributed capital
S 1,527,247
Accumulated amortization
957,567
Retained earnings
S 1,335,658)
Increase resulting from transfer from Harbor to 5M10
Current assets and debt issuance costs
1 1'188
Net property, plant and equipment
36,931
X84,845
Current liabilities
Long -term debt
Contributed capital
34,594,683
Retained earnings
43 0,261
99
CITY OF SEWARD
Parking Revenue Enterprise Fund
Balance Sheet
December 31, 2000
with Comparative Amounts for December 31, 1999
Assets
Current assets - cash and investments
Property, plant and equipment - parking lot improvements
Less accumulated depreciation
Net property, plant and equipment
Liabilities and Fund Eguiri
Current liabilities:
Accounts payable
Other accrued liabilities
Total current liabilities
Fund equity:
Contributed capital
Less accumulated amortization
Net contributed capital
Retained earnings - unreserved
Total fund equity
100
Exhibit J -21
2000 1999
65,953 91,818
438,082 376,174
288,376 ) (244,563
149,706 131,611
215,659 223,429
90 3,932
42 -
132 3,932
376,174 376,174
283,345 240,75
92,829 135,418
122,698 84,079
215,527 219,497
215,659 223,429
1
Operating revenues - parking fees
Operating expenses:
Salaries and employee benefits
Contracted services
Supplies and maintenance
Rents and leases
Administration and general
Total operating expenses
Earnings from operations before depreciationgPeP
Depreciation
Earnings (loss) from operations
Nonoperating revenues - investment income
Net earnings (loss)
Amortization of contributed capital
Increase in retained earnings
Beginning retained earnings
Ending retained earnings
101
2000
121,592
Six Months)
1999
42,005
J
12,440
Exhibit -22
15,977
CITY OF SEWARD
Parking Revenue Enterprise Fund
2,331
Statement of Rev :nues, Expenses,
13,236
and Changes in Retained Earnings
33,507
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
1
Operating revenues - parking fees
Operating expenses:
Salaries and employee benefits
Contracted services
Supplies and maintenance
Rents and leases
Administration and general
Total operating expenses
Earnings from operations before depreciationgPeP
Depreciation
Earnings (loss) from operations
Nonoperating revenues - investment income
Net earnings (loss)
Amortization of contributed capital
Increase in retained earnings
Beginning retained earnings
Ending retained earnings
101
2000
121,592
Six Months)
1999
42,005 23,060
12,440
15,977 929
2,331
13,236 9,518
85,989 33,507
35,603 44,763
1 n A IN C It A,%
8,210) 19,661
A .n A wHC
3,970) 22,086
A enn 1%1 Inc
38,619 43,381
84,079 40,698
122,698 84,079
CITY OF SEWARD
Parking Revenue Enterprise Fund
Statement of Cash Flows
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
Exhibit J -23
i
Cash flows from operating activities:
Earnings (loss) from operations
Adjustments to reconcile earnings (loss) from operations
to net cash flows from operating activities:
Depreciation
Decrease in assets - accounts receivable
Increase (decrease) in liabilities:
Accounts payable
Other accrued liabilities
Net cash flows from operating activities
Cash flows from capital and related financing activities -
acquisition of property, plant and equipment
Cash flows from investing activities - investment income received
Net increase (decrease) in cash and investments
Beginning cash and investments
Six Months)
2000 1999
8,210) 19,661
43,813 25,102
1,698
3,842) 3,667
42 (4,623)
31,803 45,505
61,908)
4,240 2,425
25,865) 47,930
91,818 43,888
Ending cash and investments $
65,953 91,818
Noncash capital and related financing activites:
Increase in property, plant and equipment and
contributed capital transferred from the Harbor Enterprise Fund $ - 376,174
102
INTERNAL SERVICE FUND
1 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.
Exhibit K -1
CITY OF SEWARD
Motor Pool Internal Service Fund
Balance Sheet
December 31, 2000
with Comparative Amounts for December 31, 1999
Assets 2000 1999
Current assets - cash and investments $
456,980 327,222
Equipment and vehicles
1,277,855 1,273,045
Less accumulated depreciation (
754,086) (622,347)
Net equipment and vehicles
523,769 650,698
980,749 977,920
Liabilities and Fund Equity
Liabilities:
Current liabilities: -
833
Accrued interest
Current portion of capital lease obligations 75,852 89,551
75,852 390384
Total current liabilities
Long -tern debt - capital lease obligations, excluding
103,017 182,641
current portion ---
Total liabilities
178,869 273,025
Fund equity:
Contributed capital
509,918 505,108
Less accumulated amortization {
38,917) (29,188)
Net contributed capital
471,001 475,920
Retained earnings - unreserved
330,879 228,975
Total fund equity
801,88080 704,895
980,749 977,920
103
CITY OF SEWARD
Motor Pool Internal Service Fund
Statement of Revenues, Expenses,
and Changes in Retained Earnings
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Period Ended December 31, 1999
Operating revenues - vehicle rental
Operating expenses -
depreciation
Earnings from operations
Nonoperating revenues (expenses):
investment income
Interest expense
Net nonoperating revenues (expenses)
Net earnings
Amortization of contributed capital
Increase in retained earnings
Beginning retained earnings
Ending retained earnings
104
Exhibit K -2
Six Months)
2000 1999
213,983 97,559
131,739 68,943
82,244 28,616
22,478 8,138
12,547) 0)
9,931 8
92,175 28,624
9,729 4,864
101,904 33,488
228,975 195,487
330,879 228,975
CITY OF SEWARD
Motor Pool Intemal Service Fund
Statement of Cash Flows
Year Ended December 31, 2000
with Comparative Amounts for Six -Month Peri od Ended December 31, 1499
Cash flows from operating activities:
Earnings from operations
Adjustments to reconcile earnings from operations
to net cash flows from operating activities -
depreciation
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 in cash and investments
Beginning cash and investments
Ending cash and investments
1
105
Exhibit K -3
Six Months)
2000 1999
82,244 28,616
131,739 68,943
213,983 97,559
93,323) (39,436)
13,380) (7,297)
4,810) (18,000)
4,810 18,000
106,703) (46,733)
22,478 8,138
129,758 58,964
327,222 268,258
S 456,980 327,222
THIS PAGE LEFT BLANK INTENTIONALLY
106 t
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.
1
I,]
ExhibitL-1
CITY OF SEWARD
Agency Funds
Combining Balance Sheet
December 31, 2000
with Comparative Totals for December 31, 1999
AVTEC
Teen Council Contract
Agency Agency Totals
Fund Fund 2000 1999
Assets
Cash and investments $
15,079 635 15,714 3,621
Liabilities
1,012 216 1,228 200
Accounts payable
14,067 419 14,486 3,421
Due to others —
15,079 635 15,714 3,621
1
107
Exhibit L -2
CITY OF SEWARD
Teen Council Agency Fund
Statement of Changes in Assets and Liabilities
Year Ended December 31, 2000
Balance at
Balance at
January 1,
December 31,
2000 Additions Del_ etions 2000
Assets
Cash and investments
3,392 22,873 11,186 15,079
Liabilities
Accounts payable
200 812 - 1,012
Due to Teen Council 3,142 23,073 12,198 _ 14,067
3,392 23,885 12,198 15,079
108
Exhibit L -3
CITY OF SEWA"
AVTEC Contract Agency Fund
Statement of Changes in Assets and Liabilities
Year Ended December 31, 2000
Balance at Balance at
January 1, December 31,
2000 Additions Deletions 2000
Assets
Cash and investments 229 4,465 4,059 635
Liabilities
Accounts payable 216 - 216
Due to AVTEC 229 4,465 4,275 419
229 4,691 4,275 635
1
1
109
THIS PAGE LEFT BLANK DJENTIONALLY 1
1
110 1
t
GENERAL FIXED ASSET ACCOUNT GROUP
The General Fixed Asset Account Group is established to account for the
City's sizeable investment in fixed assets, which are tangible assets of
significant value, having a useful life of more than one year. No
depreciation is computed on general fixed assets. This account group also
enables the City to maintain custodial responsibility for the assets.
The investment by Enterprise Funds and the Internal Service Fund in
fixed assets is accounted for in the Proprietary Fund Type.
CITY OF SEWA"
General Fixed Assets Account Group
Schedule of General Fixed Assets by Sources
December 31, 2000
with Comparative Amounts for December 31, 1999
General fixed assets:
Land and land rights
Buildings
improvements other than buildings
Equipment
Construction in progress
Investment in general fixed assets:
Capital Project Funds
General Fund
III
Exhi
2000 1999
4,053,605 3,898,515
51,318,129 61,406,904
10,883,191 10,6 04, 013
3,151,491 2,927,671
1,332,178 490,702
70,738,594 79,327,805
65,059,438 74,161,212
5,679,156 5,166,593
70,738,594 79,327,805
Exhibit M-22
CITY OF SEWARD
General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets
Year Ended December 31, 2000
112
Balance at
Balance at
January 1, December 31,
2000 Additions Del, etions 2000
Land and land rights $ 3,898,515
61,406,904
155,090
2,501 10,091,276
4,053,605
51,318,129
Buildings
Improvements other than buildings 10,604,013 279,178 10,8$3,191
Equipment 2,927,671
490,702
271,500
1,121,346
47,680
279,870
3,151,491
1,332,178
Construction in progress
79,327,805 1,829,615 10,4,826 70,738,594
112
Total general fixed assets allocated
to functions $ 4,053,605 51,318,129 10,883,191 3,151,491 69,406,416
Construction in progress 1,332,178
Total general fixed assets
I
113
70,738,594
Exhibit M -3
CITY OF SEWA"
General Fixed Assets Account Group
Schedule of General Fixed Assets by Function and Activity
December 31, 2000
Land Improve-
end ments
Land Other than
Function and Actium Rights Building Buildings Eguipment Total
1 General government:
City Council/Mayor 54,323 54,323
manager
9,140 9,140
City
City clerk 10,613 10,613
Finance 187,516 187,516
development 5,860 5,860Community
Municipal building 2,200,080 33,869 2,233,949
Alaska Sealife Center 37,599,774 1,952,584 1,145,720 40,698,078
General services 8,005,937 31,714 8,037,651
Community and Senior Center 920,709 920,709
Nondepartmental 4,053,605 4,053,605
Total general government 4,053,605 40,720,563 9,958,521 14478,755 56,211,444
Public safety:
Police 177,219 177,219
12,562Jail12,562
Animal control 156,720 156,720
Fire 881,031 422,137
61,614
1,303,168
61,614SewardVolunteerAmbulanceCorp
Total public safety 1,037,751 673,532 1,71.1 283
Public works:
Streets 116,945 129,804 619,508 866,257
Building inspector 2,600 2,600
City shop 771,823 25,000 796,823
Total public works 888,768 129,804 647,108 1 6, 65,680
Hospital 7,745,896 116,012 7,861,908
Parks and recreation 284,909
640.242
782,066
12.800
139,890
96,194
1,206,865
749,236Library
Total general fixed assets allocated
to functions $ 4,053,605 51,318,129 10,883,191 3,151,491 69,406,416
Construction in progress 1,332,178
Total general fixed assets
I
113
70,738,594
Public works: 866,257
Streets 893,937 20,000 47,680 '
2,600 - - 2,600
Building inspector 796,823
City shop
816,824 - 20,OOi
Total public works 1,713,361 20,000 67,681 1,665,680 '
Hospital 7,745,896 116,012 - 7,861,908
Exhibit
205,658 -
CITY OF SEWARD
Library
704,441
490,702
44,795 -
1,121,346 279,870 1,332,178
General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets by Function and Activity
70,738,594
Year Ended December 31, 2000
General Fixed General Fixed
Assets at Assets at
Function and Activ C January 1 2000 Additions Deletions December 31 2000
General government: 54,323
City Council/Mayor 54,323
9,140
City manager 5,684 3,456
10,613
City clerk 10,613
184,970 2,546 187,516
Finance
Community development 5.860 5,860
Municipal building 2,227,266 6,683 2,233,949
Alaska Sealife Center 50,613,146 176,208 10,091,276 40,698,07$
General services 8,056,044 2,865 22,158 8,037,651
Community and Senior Center 920,709 920,709
4,053,605
Nondepartmental 3,898,515 155,090
Total general government 65,978,030 346,848 10,113,434 56,211,444
Public safety:
177'219 177,219
Police
12,562 12,562
Jail
Anima! control 156,720 156,720
1,303,168
Fire 1,286,053 17,115
61,614
Seward Volunteer Ambulance Corp 61,614
Total public safety 1,694,168 17,115 1,711,283
Public works: 866,257
Streets 893,937 20,000 47,680 '
2,600 - - 2,600
Building inspector 796,823
City shop
816,824 - 20,OOi
Total public works 1,713,361 20,000 67,681 1,665,680 '
Hospital 7,745,896 116,012 - 7,861,908
Parks and recreation
1,001,207 205,658 - 1,206,865
749,236
Library
704,441
490,702
44,795 -
1,121,346 279,870 1,332,178
Construction in progress
79,327,805 1,871,774 10,460,985 70,738,594
114
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.
i
i
CITY OF SEWARD
General Long -Term Debt Account Group
Schedule of General Long -Term Debt
December 31, 2000
with Comparative Amounts for December 31, 1999
Amount Available and to be Provided for the
Payment of General Long -Term Debt
Amount available in Debt Service Fund
Amount to be provided:
Accrued annual leave
Bonds payable
Retirement incentive program payable
Seward General Hospital PERS liability
Total amount to be provided
General Lon -Term Debt Payable:
Accrued annual leave
1990 bonds payable
1993 refunding bonds payable for the 1987 Series A
1993 refunding bonds payable for the 1990 Series A
1996 Hospital bonds
Retirement incentive program payable
Seward General Hospital PERS liability
115
Exhibit N -1
2000 1999
564,909 429,829
190,016 174,014
8,070,652 8,559,855
49,053 117,154
960,286 960,286
9,270,007 9,811,309
9,834,916 10,241,138
190,016 174,014
75,000
253,277 282,400
1,375,000 1,390,000
6,885,000 7,120,000
49,053 117,154
1,082,570 1,082,570
9,834,916 10,241,138
THIS PAGE LEFT BLANK INTENTIONALLY I
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116 1
FEDERAL AND STATE
FINANCIAL ASSISTANCE SCHEDULES
The Schedules of Expenditures of Federal Awards and State Financial Assistance
itemize the sources of grant funds received by the City during the year, as required by
the Government Auditing Standards and State of Alaska Audit Guide and Compliance
Supplement far Single Audits.
v
a
e
ry, I
CITY OF SEWAM
Schedule of Expendi tarn of Waal Award"
Year Ended December 31, 2000
Catalog of
Federal
Domestic
Assistance Grant
Number Number
Exhibit O -I
Total Jan. 1. 2000 Federal Dec. 31, 2000
Grant Receivable Share of Federal Receivable
Award (Deterred) Expertdnures Receipts (Deterred)
Rd=[ Emergency Management Agency passed through State of Alaska
Department of Military and Veterans Affairs 83.544 FEMA -AK -DR -1316 S 372.829
UM—t of Transportation passed
through State of Alaska Department of Public Safety
BicyclefPedeserian Safety Grant 20.600 75d
LM-t of Agriculture:
NRCS Flood Mitigation/Engineering 10.904 6"150 -9.024 500,00(
NRCS Flood Mitigation/Construction 10.904 6"00.0.023 1.000.00(
Total Departent of Agriculture
Department of tnterior paned through State of Alaska
Department of Natural Resources:
137.371 128,484 8,887
750 750
65.210 295.088 133,268 227.030
8= - 8,218
65.21 305L 8 235.54
Pittsburgh Travel Grant 15.xxx 99344 5,722 4.855 4.855
Seward Roguror of Historic Places 15.xxx 98320 6.798 2.952 2,952
Seward Two Lakes Park 15.xxx 02 -00361 27,552 4.654 4.654
Total Department of Interior x¢54 71807 12.461
Department of Housing and Urban Development passed through State of Alaska
Department of Community and Economic Development
ADA Compliance Project 14.228 2198787 150,000 46.101 1,759 47.8 60
Total Federal Financial Assistance S 115.965 451.293 322,823 244,435
Majorprogram
i
Mayor program
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118
Exhibit P-
CITY OF SEWARD
Schedule of State Financial Assistance
Year Ended December 31, 2000
Total Jan. 1, 2000 State Dec. 31, 2000
Grant Grant Receivable Share of State Receivable
State Grant Title Number Award (Deferred) Ex iturr. Receipts (Deferred)
Department of Community & Economic Development
951668 -8-001 5 59,200 31,653 15,707 47,360
Gateway Subdivision
Huth School Bike Path Extension
50,700 9,449) 46,290 36,841
Emergency Shelter Supplies
941668-5-W4941668 -5-004
961668 -9 -003
22,393
12,000 1,272 3,608 4, 880
Seward Community Cemetery
Historic Records Preservation, Phase II 97!668 -9 -007 28,662 743 1,269
12,043
526}
4,484
Harbor Plaza Renovation 981668 -9-001
981668 -002
50,000
23,487
9,032
2,417
7,495
4,411 6,836
Library information and Technology Automation Project 9
981668 -9-003 33,283 347) 5,226 4,879
Haber Park
ADA Campsites and Sewer Dump Station 991668 -9 -002 32,274
29,980
15,441
2,474
i,268
4,375
16,709
6,849
911 Equipment Replacement
991668 -5-003
9199 -001 1,088,500 207,766) 1,078,566 870,800
Replacement Electric Generator
Curb Cuts for ADA Compliance- Sidewalk,Curb,Gutters 001668 -9 -002 34,564 27,651 27.651
City Hall Facilities & Equipment 01-MG-141 -
5-000016685 -OOl
75,532
40,000 30,065 0,935 32,000
Fire Dept Fire Hose Replacement 40,570 90,570 90,570
Revenue Sharing 73,598 73,598 73,598
Safe Communities 4,755 4,755
Shared Fisheries Business Tax 5,796 5,
755
5,796 5,796
Shared Fisheries Business Tax FY00 8,795 8,795 8,795
Fisheries Resource Landing Tax FY99 258 25B
Fisheries Resource Landing Tax FY00
258
97557) 1353 .406 24
Total Dept of Community & Economic Development
Department of Environmental Conservation
76909 24'800 23,560 1.240
Water Distribution System Analysis
24,800
Department of Revenue 259,273259,273 259,273
Fish Business Tax 12,000 E2,0W 12,000
Liquor Tax FY"
7,400 7,400 7,400
Liquor Tax FY00
12,000 266,b73 278,673
Total Department of Revenue
Department of Transportation and Public Facilities
3,134,20D,4?931
Seward Harbor Transfer
Department of Education 50,S00 9,473 46,243 36.243 19.473
AVTEC Student Service Center Grant
r
PLA -00- 770 -70 6,300 1,430) 6,155 4 ,725
Library Public Assistance Grant PLA 01- 770 -68 6,300 6,300 6.300
Library Public Assistance Grant 8,043 52,398 47,268 13,173
Total Department of Education
Department of Fish sad Comr
94199 26,092,648 19 9 1 ao.o o6 S 664 43.565
EVOS Alaska SeaLife Center
Department of Military and Veterans Affairs
Federal Emergency Management Agency
passed through Department of Military and Vertcrans
FEMA -AK -DR 1316 l 24,276 45,790 42,828 2.962
Affairs - FEMA
TOTAL STATE FINANCIAL ASSISTANCE 5 23,156,55 4,872,471 1,694,806 21,113
Mayor program
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118
PART III
STATISTICAL SECTION
Fund Revenue by SourceTable1: General
Table IA: General Government Tax Revenues by Source
Table 2: General Fund Expenditures by Function
Table 3: Property Tax Levies and Collection
Table 4: Assessed and Estimated Actual Value of Taxable Property
Table 5: Property Tax Rates — Direct and Overlapping Debt
Table 6: 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
i#
Table 1
CITY OF SEWARD
General Fund Revenues By Source
Last Ten Fiscal Periods *
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 31.
his schedule includes ten full fiscal years plus the six -month transition period.
tRepresents the six -month period from July 1, I999 through December 31, 1999.
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119
Property Licenses Inter- charges Fines
Assess - and govern- for and
Taxes nients Pgitj mental rvjM Bails Interest Mist -_ T_ otal
2,293,728 230,546 69,195 1,046.659 2,025.766 13,058 410,593 95,077 6,184,622
2,627,050 6,505 74,005 913,137 1,879,663 18,158 245,872 124,466 5,888,856
2,509.708 32.573 23,736 983,759 2,425,012 41,892 236,986 47,862 6,301,528
2,882,005 19,795 33,132 903,835 2,104,588 35,230 102.824 36.807 6,118,216
3,081.177 2,241 61,073 789,157 S 1.760.860 49,289 221.832 39.340 6,004,969
2,923,340 524 119,982 909,521 1,595.223 26,945 219514 106.126 5,901,175
3,072,913 1,871 200,964 1,099,869 1,662.854 12,383 280,363 50,079 6.381,294
3,293,763 0 115,106 1,105,212 1,54,141 14,495 261,974 147,861 6,478,552
3,584,389 0 SI44,003 1,021,209 1,475,581 17,347 214,140 218,597 6,675,266
2,255.326 0 73,715 438.185 925,721 10,748 104,719 41,956 3,850,370
3,953,139 0 139,871 984,231 S2,179,832 14,786 438,005 247,461 7,957,325
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 31.
his schedule includes ten full fiscal years plus the six -month transition period.
tRepresents the six -month period from July 1, I999 through December 31, 1999.
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119
CITY OF SEWARD
General Government Tax Revenues By Source
Last Ten Fiscal Periods *
Payment
Fiscal Property Sales In Lieu Hotelimotel
year Taal, Tax of Tax Room Tax (1) Other (2) Total
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
1997 479,062 1,734,019 729,498 128.188 2.146 3,072,913
1998 518,788 1,820.230 799.978 148.211 6,556 3,293,763
1999 523,993 2,029,485 864,106 163,330 3,475 3,584,389
111999 515,544 1,197,288 419,108 122,248 1,138 2,255,326
2000 694,332 2,197.561 844,583 212,619 4,044 3.953,139
a
Table 1 A
I
Effective July 1. 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 31.
This schedule includes ten full fiscal years plus the six -month transition period.
Represents the six -month period from July 1. 1999 through December 31, 1999.
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).
120
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CITY OF SEWARD
General Governmental Expenditures By Function (1)
Last Ten Fiscal Periods *
Table 2
Flscal General Publk Publk Parks and Debt
Year Government Safety Works Recreation Library Serve a Total
1991 1,488,855 1,584,821 608,287 449,119 154,870 362,260 4,648,212
1992 1,851,718 1,640,081 692,653 493,106 193,510 345,265 5,216,333
1993 1,779,085 1,682,176 689,209 471,045 184,274 367,509 5,173,298
1994 1,542,179 1,782,396 722,202 443,661 200,553 343,702 5,034,693
1995 1,567,287 1,835,194 801,753 430,112 190,517 282,748 5,107,611
1996 1,485,903 1,860,349 791,868 508,467 218,175 270,201 5,134,963
1997 1,972,584 1,919,233 790,386 632,389 228,894 220,816 5,764,302
1998 1,960,687 1,876,870 831,248 609,001 234,033 278,506 5,790,345
1999 1,542,370 1,914,943 863,536 597,516 227,882 792,267 5,938,514
1999 864.468 1,029,356 490,459 386,599 117,411 570,058 3,458,351
2000 1,592,475 1,970,643 981,027 711,721 245,710 840,997 6,342,573
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December
31. This schedule includes ten full fiscal years plus the six -month transition period.
Represents the six -month period from July 1, 1999 through December 31, 1999.
1 (
1) Includes General Fund and Debt Service Fund
121
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 31. '
This schedule includes ten full fiscal years plus the six -month transition period.
Represents the six -month period from July 1, 1999 through December 31, 1999.
Source: Kenai Peninsula Borough '
122
1
Table 3
CITY OF SEWARD
Property Tax Levies And Collections
Last Ten Fiscal Periods
Ratio of
Total Tax Delinquent
Total Current Percent Delinquent Total Collections Outstanding Taxes As A
Fiscal Tax Tax of Levy Tax Tax As A % Delinquent of
Year I&yy Collections X I oll tions Collections OrLM Xpes Total Levy
1991 463.743 413,850 89.2% 5,731 419581 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% i
1996 505,034 5447,110 88.5% 66.044 513,153 101.6% 68,253 13.5%
1997 489,187 438.512 89.6% 2.294 440,807 90.1% 83,389 17.1%
1998 495,052 5466,528 94.2% 13,791 480,319 97.0% 60,601 12.2%
1999 505,323 488,883 96.7% 32,515 521,398 103.2% 40.930 8.1%
1999 523.453 484,305 92.5% 4,627 488,931 93.4% 70,490 13.5%
2000 606,781 571,261 94.2% 541,770 613.031 101.0% 564.241 10.6%
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 31. '
This schedule includes ten full fiscal years plus the six -month transition period.
Represents the six -month period from July 1, 1999 through December 31, 1999.
Source: Kenai Peninsula Borough '
122
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Tabig 44
CITY OF SEWARD
Assessed And Estimated Actual Value of Taxable Property
Last Ten Fiscal Periods *
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 31. This
schedule includes ten full fiscal years plus the six -month transition period.
Represents the six - month period from July 1. 1999 through December 31, 1999,
Source: "Alaska Taxable ", State of Alaska
Kenai Peninsula Borough Certified Assessment Roll
123
Real Property Personal Property Total Property
Ratio of Total
Estimated Estbuted Estimated Assessed Value
Fiscal Assessed Actual Assessed Actual Assessed Actual To Total Est.
Yee r Value Valuc Value Value _ Valug_ Value Actual Vi
1991 97.193,437 100,612,800 53,601,900 564.419,000 150,795.337 165.031,800 91.37%
1992 88.464,566 100,667,900 52,574,761 68,929.200 141,039,327 169.597,100 83.16%
1993 92,122,180 98,261,300 50.038,979 66,112,200 142,161,159 164.383,500 86.48%
1994 102,022,980 111,378,100 53,373,128 69,439,400 155.396,108 180,817,500 85.94%
1995 103.330,330 111.294,400 75.604.139 94,472,100 178.934,469 205.766,500 86.96%
1996 105.272350 113.853,300 58,875.732 77,447,000 164.147,882 191.300,300 85.81%
1997 108.318,979 117,443,100 50,476.044 70.537,400 158.795,023 187,980,500 84.47%
1998 106,196.750 117 ,506,400 49,253,008 67,755.600 155,449,758 5185,262,000 83.91%
1999 106,918,000 114,049.300 52,852.159 70,534,400 159,770,159 184.583,700 86.56%
1999 113,464,200 124,730,000 5g.163.405 72,987,600 171.627,605 197,717,600 86.80%
2000 154,991,200 167,589,200 55,354,065 71,952,600 210,345,265 239,541,800 87.81%
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 31. This
schedule includes ten full fiscal years plus the six -month transition period.
Represents the six - month period from July 1. 1999 through December 31, 1999,
Source: "Alaska Taxable ", State of Alaska
Kenai Peninsula Borough Certified Assessment Roll
123
1
aj, ble 5
iCITYOFSEWARD
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
Per $1,000 of Assessed Value)
Fiscal
Year City Borough (1) Total
1991 3.00 5.75 8.75
1992 3.00 7.55 10.55
1993 3.00 8.55 11.55
1994 3.00 8.55 11.55
1995 3.00 8.62 11.62
1996 3.00 8.62 11.62
1997 3.00 8.30 11.30
1998 3.12 8.38 11.50
1999 3.12 8.10 11.22
2000 3.12 7.60 10.72
I
1) Includes Kenai Peninsula Borough and Kenai Peninsula Community College.
Source: City of Seward
Kenai Peninsula Borough
I
I124
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I
I CITY OF SEWMW
Special Assessment Billings and Collections
II
Last Ten Fiscal Penous
1
Fiscal
Year
1991
1992
1993
1994
1995
1996
1997
1998
1999
1999
2000
Special
Assessment
Billings—
28,548
26,190
27,618
27,618
21,759
18,368
1,111
1,273
1,106
0
32,102
Special
Assessment
Collections (1)
111,719
6,505
32,573
19,795
2,241
524
2,175
3,182
3,138
0
47,246
Total
Outstanding
Assessmupt.
250,200
263,978
249,385
265,103
285,889
272,190
94,395
91,127
87,989
85,357
395,539
Effective July 1. 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 31.
This schedule includes ten full fiscal years plus the six -month transition period.
Represents the six -month period from July 1, 1999 through December 31. 1999.
1) Includes pre- payments, current payments, and past due payments.
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125
CITY OF SEWARD
Ratio of Net General Obligation Bonded Debt
To Assessed Value And Net General Obligation Bonded Debt Per Capita
Last Ten Fiscal Periods *
Fiscal
Debt
Assessed
Year Population (1) Value (21 1
Payable from
1991 2,856 150,795
1992 2.878 141,039
1993 2,886 142,161
1994 2,965 155,396
1995 2,917 178,934
1996 2,891 164,148
1997 2,996 158,795
1998 3,028 155.450
1999 3,010 159,770
1999 3,010 171,627
2000 2,830 210,345
Table 7
Gross Debt Ratio of Net Net
Bonded Payable from Net Bonded Debt Bonded
Debt Enterprise Bonded to Assessed Debt Per
Of Revenu Dbtf we r'spits
11,021 8,796 2,225 1.48% 779
10.563 8.351 2.212 1.57% 769
10,039 7,886 2,153 1.51% 746
10.249 7,930 2,319 1.49% 782
9,549 7,310 2,239 1.25% 768
8,788 6,636 2,152 1.31% 744
15.600 6,037 9,563 6.02% 3,192
14,865 5,398 9,467 6.09% 3,126
13,910 4,724 9,186 5.75% 3.052
13,025 4,157 8,867 5.17% 2,946
11,935 3,421 8,513 4.05% 3,008
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 31. This schedule includes ten full fiscal years plus the six -month transition period.
Represents the six -month period from July 1, 1999 through December 31, 1999.
Amounts expressed in thousands.
1) Alaska Department of labor and Workforce Development
2) From table 4
3) Amount does not include revenue bonds
Source: State of Alaska
Kenai Peninsula Borough
126
1
Table
CITY OF SEWARD
Legal Debt Margin
December 31, 2000
No debt limit mandated b y law.
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127
Table BA
1
CITY OF SEWARD
Computation of Direct And Overlapping Bonded Debt
General Obligation Bonds
December 31, 2000
Net General
Obligation Percentage Amount
Bonded Debt Applicable To Applicable To
Jurisdiction Qutstanding City of Seward pity of Seward
Direct:
City of Seward $8,513,278 (1) 100.00% 8,513,278
Overlapping:
Kenai Peninsula Borough 14.664.444 (3) 7.370 2) 1080,737
Total 23 177 278 9 594 015
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 = $210,345,265) to total assessed
value of the Kenai Peninsula Borough ($2,852,252.140). Source: "2000 Alaska Taxable", State of Alaska. p.40,
and Kenai Peninsula Borough certified main and supplemental tax roles.
3) Source: Kenai Peninsula Borough finance department.
128
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Fiscal
Year
1991
1992
1993
1994
1995
1996
1997
1998
1999
1999
2000
Principal
129,890
143,563
180,448
199,898
143,511
139,216
99,187
115,275
281,475
318,240
507,340
CITY OF SEWARD
Ratio of Annual Debt Service Expenditures
For General Obligation Debt (1)
to Total General Fund Expenditures
Last Ten Fiscal Periods *
In st
232,370
201,701
187,061
143,804
139,237
130,985
121,629
163,231
510,792
251,818
333,657
Total
Debt
Service (1)
362,260
345,265
367,509
343,702
282,748
270,201
220,816
278,506
792,267
570,058
840,997
Total
General
Expenditures (2)
4,648,212
5,216,333
5,173,298
5,034,693
5,107,611
5,134,963
5,764,302
5,790,345
5,938,514
3,458,351
6,342,573
able
Ratio of
Debt Service to
General
ExpendituM
7.79%
6.62%
7.10%
6.83%
5.54%
5.26%
3.83%
4,81%
13.34%
16.48%
13.26%
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 31. This
schedule includes ten full fiscal years plus the six -month transition period.
Represents the six -month period from July 1. 1999 through December 31, 1999.
1)
2)
General obligation debt reported in the Enterprise Funds, with government commitment, have been excluded.
Total General Expenditures includes General Fund and Debt Service Fund.
129
CITY OF SEWARD
Revenue Band Coverage
Electric Enterprise Fund
Last Ten Fiscal Periods (5)
Tble 10
Debt Servio
PrittChDal,
Muirewe"M
Interest
3)
ojjI_
Net Revenue
Fiscal Gross Operating Available for
Year Revenues(l) Exnenses(21 Debt Service
50,000
1995 5,927,945 3,538,065 2,389,880
1996 5,830,903 3,624,001 2,206,902
1997 5,955,699 3,604,036 2,351,663
1998 6,428.124 4,064,418 2,363.706
1999 6,720,313 3,644,529 3,075,784
2000 6,704,860 4,171,110 2,533,750
Tble 10
Debt Servio
PrittChDal,
Muirewe"M
Interest
3)
ojjI_ Coveraee (4)
184.435 184,435 11.97
184,435 184,435 12.75
50,000 184,435 234,435 10.08
75,000 180,760 255,760 12.03
100,000 171,573 271,573 9.33
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 prior to 1995.
130
Fiscal
Year
1991
1992
1993
1994
1995
1996
1997
1998
1999
1999
2000
Total Real
Property
Value (1}
100,612,800
100,667,900
98,261,300
111,378,100
111,2944,400
113,853,300
117,443,100
117,506,400
114,049,300
124,730,000
167,589,200
CITY OF SEWARD
Property Value, Construction and Bank Deposits
Last Ten Fiscal Periods *
Commercial
Construction
Number
Of
Permits Value
29 2,163,276
21 842,685
16 328,462
20 3,120,673
27 31,539,700
16 8,076,000
29 7,770,836
24 2,095,035
22 5,937,950
24 1,407,699
23 1,982,065
Residential
Construction
Number
Of
Permits V„Aiue
21 1,053,150
20 620,425
34 1,504,173
24 384,400
28 746,600
31 1,093,800
41 1,513,902
34 1,493,675
25 1,271,900
12 719,300
36 1,469,000
Table 11
Bank
Detwsits
27,477,800
32,518,000
27,808,000
28,409,000
35,186,501
36,572,000
38,598,136
43,350,000
47,116,749
42,661,000
45,217,355
Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 31.
This schedule includes ten full fiscal years plus the six -month transition period.
Represents the six -month period from July 1, 1999 through December 31, 1999.
1) Estimated actual value from Table 4
Source: City of Seward - Building Inspection Department
Local Banks - First National Bank of Anchorage, National Bank of Alaska
131
1
Table 12
CITY OF SEWARD '
Principal Taxpayers
December 31, 2000 '
Taxgaver _ Typt of Rusinm
2,493,900
Leirer Enterprises/
2,375,600
Steve, Carol, James, Winifred Leirer Real Estate/Leasing
Icicle Seafoods Seafood Processing
Shoreside Petroleum, IncJ
Kurt and Diana Lindsey Petroleum Products
Hotel Edgewater Hotel /Gift Shop
Suneel Alaska Corporation Coal Export
Breeze Inn Motel - Juris Mindenbergs Motel/Restaurant
Seward Ships Chandlery/ Ship Repair /Convenience
Harbor Gateway Enterprises- James Pruitt Store/Gas Station/Misc.
New Seward Hotel/New Seward Saloon
Brad Snowden and Virginia Bradley Hotel /Saloon
Afognak Logging/Albert Schafer Construction/Logging
Chugach Alaska Corporation Real Estate/Retail
Percent of
FY00 Total ,
Assessed Assessed
Valuationill Valuatlon_(?)
8,107,900
4,708,000
4,341,100
3,211,800
3,023,400
2,909,900
3.9%
2.2%
2.1%
1.5%
1.4%
1.4%
2,496,600 1.2%
2,493,900 1.2%
2,375,600 1.1%
1,982,800 0.9%
l) Includes real and personal property based on 2000 tax roils, Source: Kenai Peninsula Borough - Assessing Department
2) Total assessed valuation (real and personal property) is $210,345,265. Source: Kenai Peninsula Borough.
132
11,7
L
Table 13
CITY OF SEWARD
MISCELLANEOUS STATISTICS
December 31, 2000
Date of Incorporation June 1, 1912
Class Home Rule
Form of Government Councimai%W
Number of employees
Non - Exempt 66
Exempt 16
Area, Square Miles 22
Population 2,830
Qualified Voters 1,972
City of Seward facilities and services:
Miles of streets 43.14
Number of street lights 198
Building Permits Issued 59
Recreation and Culture:
Number of Parks & Playgrounds 11
Number of Libraries 1
Number of Volumes 26,982
Fire Protection
Number of Stations 2
Number of Paid Firefighters and Officers 2
Number of Volunteers 29
Number of Calls Answered 183
Fire Rating (ISO) 419
Police Protection
Number of Stations 1
Number of Officers 9
Number of law violations:
Physical arrests 364
Traffic violations 1,542
Parking violations 161
Sewerage System:
Number of treatment plants 2
Number of service connections 832
Daily average treatment in gallons 870,000
Maximum daily capacity of treatment plant in gallons 1,200,000
Water System:
Number of service connections 857
Number of fire hydrants 185
Daily average consumption in gallons 1,300,000
Maximum daily capacity of plant in gallons 5,500,000
Electric Distribution System:
Number of service connections 2,333
Miles of distribution lines 55
133
Table 13. continued
CITY OF SEWARD
MISCELLANEOUS STATISTICS
December 31, 2000
Miles of transmission lines 42
Number of sub - stations 3
Total number of kilowatt sales 55,496,119
Harbor and Port Operations:
Registered vessels 3.857
Number on waiting list for boat slips 323
Number of boat lifts 565
General cargo tonnage 5,803
Fish product tonnage 21,758
Petroleum (gallons) 2,921,054
Facilities and services not included in the reporting entity:
Education
Elementary School
Number of Students Enrolled 386
Number of Teachers 17
Jr/Sr High School
Number of Students Enrolled 450
Number of Teachers 28
Alaska Vocational Technical Center
Number of Students Served Annually 1,600
Number of Teachers 34
Hospital
Providence Seward Medical Center:
Number of patient beds (4 primary care: 2 swing beds) 6
Number of employees:
Non - Exempt 63
Exempt 5
134
z
c
r
PART Iv
SINGLE AUDIT SECTION
The Single Audit Section of the CAFR provides the results of the auditor's report on compliance
and on internal control over financial reporting, for the major state and federal grant programs. This
section includes any applicable schedules of findings and questioned costs, schedules of prior audit
findings, and corrective action plans.
CO. MIKUNDA, C OTTRELL
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
Indepgndent Auditor's R rt on C liance and on Internal C ntr 1 F' ial R n ased on
Audit of Financial Statements Performed ir. Accordance with Government auditing Standards
Honorable Mayor and City Council
1
City of Seward, Alaska
We have audited the general purpose financial statements of City of Seward as of and for the year eroded
December 31, 2000, and have issued our report thereon dated March 23, 2001. 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.
Compliance
As part of obtaining reasonable assurance about whether City of Seward's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grants, noncompliance with which could have a direct and material effect on the determination
of financial statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance that are required to be reported under Government Auditing
Standards.
Internal Control Over Financial R ort in
In planning and performing our audit, we considered City of Seward's internal control over funancial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the
financial statements and not to provide assurance on the internal control over financial reporting. Our
consideration of the internal control over financial reporting would not necessarily disclose all matters in the
internal control over financial reporting that might be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components does not reduce
to a relatively low level the risk that misstatements in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. We noted no matters involving the internal control
over financial reporting and its operation that we consider to be material weaknesses.
This report is intended solely for the information of City of Seward's management, Honorable Mayor and
City Council, and appropriate federal and state agencies, and is not intended to be and should not be used by
anyone other than these specified parties.
March 23, 2001
GLADREY NETWORK
na:TS
135 Offices: Anchorage, Bethel &Kenai
MIKUNDA, COTTRELL & CO.
A Professional Corporation ,
CERTIFIED PUBLIC ACCOUNTANTS BSc CONSULTANTS
3601 "C" Street, Suite 600 + Anchorage, Alaska 99503
907) 278 -8878, Fax (907) 278 -5779 '
www.mcc - cpa.com
136
MCGLADREY NETWORK '
R
Cllices: Anchorage, Bethel & Kenai
Independent Auditor's R rt on Com fiance with R uirements A licable to Each Mayor
ProgpM and on Internal Control Over Com liance in Accordance with OMB Circular A -133
Honorable Mayor and City Council
City of Seward, Alaska
Compliance
We have audited the compliance of City of Seward with the types of compliance requirements
described in the U.S office of Management and Budget (OMB) Circular A -133 Compliance
Supplement that are applicable to each of its major federal programs for the year ended December
31, 2000. City of Seward's major federal programs are identified in the summary of auditor's
results section of the accompanying schedule of findings and questions costs. Compliance with the
requirements of laws, regulations, contracts and grants applicable to each of its major federal
programs is the responsibility of City of Seward's management. Our responsibility is to express an
opinion on City of Seward's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards;
the standards applicable to financial audits contained in Government Auditing Standards, issued by
United States; and OMB Circular A -133, Audits of States, LocaltheComptrollerGeneralofthe
Governments, and Non-Profit Organizations. Those standards and OMB Circular A -133, require
that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material
effect on a major federal program occurred. An audit includes examining, on a test basis, evidence
about City of Seward's compliance with those requirements and performing such other procedures
as we considered necessary in the circumstances. We believe that our audit provides a reasonable
basis for our opinion. Our audit does not provide a legal determination on City of Seward's
compliance with those requirements.
In our opinion, City of Seward complied, in all material respects, with the requirements referred to
above that are applicable to each of its major federal programs for the year ended December 31,
2000.
136
MCGLADREY NETWORK '
R
Cllices: Anchorage, Bethel & Kenai
1
1 Honorable Mayor and City Council
City of Seward, Alaska
internal Control Over Compliance
1 The management of City of Seward is responsible for establishing and maintaining effective
internal control over compliance with requirements of laws, regulations, contracts and grants
1 applicable to federal programs. In planning and performing our audit, we considered City of
Seward's internal control over compliance with requirements that could have a direct and
material effect on a major federal program in order to determine our auditing procedures for the
purpose of expressing our opinion on compliance and to test and report on internal control over
compliance in accordance with OMB Circular A -133.
1 Our consideration of the internal control over compliance would not necessarily disclose all matters
in the internal control that might be material weaknesses. A material weakness is a condition in
which the design or operation of one or more of the internal control components does not reduce to
1 a relatively low level the risk that noncompliance with applicable requirements of laws, regulations,
contracts and grants that would be material in relation to a major federal program being audited may
occur and not be detected within a timely period by employees in the normal course of performing
1 their assigned functions. We noted no matters involving the internal control over compliance and
its operation that we consider to be material weaknesses.
1 This report is intended solely for the information of City of Seward's management, Honorable
Mayor and City Council, and appropriate federal and state agencies, and is not intended to be and
should not be used by anyone other than these specified parties.
1 March 23, 2001
137
1
CITY OF SEWARD
Schedule of Findings and Questioned Costs
Year Ended December 31, 2000
138
AUDIT RESULT_
I. Summary of Auditor's Results:
Financial Statements:
Type of auditor's report issued:
Unqualified
internal control over financial reporting:
Material weaknesses identified? yes x no
Reportable conditions identified that are not
xnone reported
considered to be material weaknesses? yes
Noncompliance material to financial
statements noted?
yes x no
Federal Awards:
internal control over major programs:
Material weaknesses identified? yes x no
Reportable conditions identified that are not
to be material weaknesses?
yes x none reported
considered
Type of auditor's report issued on compliance for
major programs:
Unqualified
Any audit findings disclosed that are required to be
reported in accordance with section 510(a) of
Circular A- 133? J
yes x no
Major program: Aggncy CFDA Numbe r Pro
NRCS Flood
Department of Agriculture 10.904 Mitigation
Dollar threshold used to distinguish between
Type A and B programs
300'0
Low -risk auditee
No
II. Financial Statement Findings
None noted
III. Federal Awards Findings and Questioned Costs None noted
138
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1
MIKUNDA, COTTRELL & CO.
A Professional Corporation
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
3601 "C" Street, Suite 600 + Anchorage, Alaska 99503
907) 278 -8878, Fax (907) 278 -5779
www.mcc- cpa.com
Independent Auditor's Report on Compliance and on internal Control Over Financial Reporting Based on an
Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Honorable Mayor and City Council
City of Seward, Alaska
We have audited the general purpose financial statements of City of Seward as of and for the year ended
December 31, 2000, and have issued our report thereon dated March 23, 2001. 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.
Compliance
As part of obtaining reasonable assurance about whether City of Seward's financial statements are fi= of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grants, noncompliance with which could have a direct and material effect on the determination
of financial statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance that are required to be reported under Government Auditing
Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City of Seward's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the
financial statements and not to provide assurance on the internal control over financial reporting. Our
consideration of the internal control over financial reporting would not necessarily disclose all matters in the
internal control over financial reporting that night be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components does not reduce
to a relatively low level the risk that misstatements in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. We noted no matters involving the internal control
over financial reporting and its operation that we consider to be material weaknesses.
This report is intended solely for the information of the City of Seward's management, Honorable Mayor and
City Council, and the State of Alaska, and is not intended to be and should not be used by anyone other than
these specified parties.
March 23, 2001
McGLADREY NETWORK
waa e. s tin wa.nau
141
F-1
Offices: Anchorage, Bethel & Kenai 1
LI
MIKUNDA, COTTRELL &. CO.
A Professional Corporation
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
3601 "C" Street, Suite 600 • Anchorage, Alaska 99503
947) 278 -8878, Fax (907) 27 8-5779
www.mcc- cpa.com
Independent Auditor's Report on Compliance with Requirements Applicable to Each Major
Program and on Internal Control Over Compliance in Accordance with the State of Alaska Audit
Guide and Compliance Supplement for State Single Audits
Honorable Mayor and City Council
City of Seward, Alaska
1 Compliance
We have audited the compliance of City of Seward with the types of compliance requirements
described in the State of Alaska Audit Guide and Compliance Supplement for State Single Audits
that are applicable to each of its major state programs for the year ended December 31, 2000. City
of Seward's major state programs are identified in the accompanying schedule of state financial
assistance. Compliance with the requirements of laws, regulations, contracts, and grants, general
requirements, and the specific requirements applicable to each of its major state programs is the
responsibility of City of Seward's management. Our responsibility is to express an opinion on City
of Seward's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards;
the standards applicable to financial audits contained in Government Auditing Standards issued by
the Comptroller General of the United States and the State of Alaska Audit Guide and Compliance
Supplement for State Single Audits. Those standards and the State of Alaska Audit Guide and
Compliance Supplement for State Single Audits require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major state program occurred. An
audit includes examining, on a test basis, evidence about City of Seward's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit
does not provide a legal determination of City of Seward's compliance with those requirements.
In our opinion, City of Seward complied, in all material respects, with the requirements referred to
above that are applicable to each of its major state programs for the year ended December 31, 2000.
L.
McGLADREY NETWORK
142
An k+aepw n.nw ownw Lumbar
bwpr fwide Sernoaa Tniaph Ns lMarrwtionaI Offices: Anchorage, Bethel & Kenai
Honorable Ma or and City Council '
City of Seward, Alaska
internal Control Over Compliance
The management of City of Seward is responsible for establishing and maintaining effective '
internal control over compliance with the requirements of laws, regulations, contracts, and grants
applicable to state programs. In planning and performing our audit, we considered City of Seward's '
internal control over compliance with requirements that could have a direct and material effect on a
major state program in order to determine our auditing procedures for the purpose of expressing our
opinion on compliance and to test and report on the internal control over compliance in accordance '
with the State of Alaska Audit Guide and Compliance Supplement for State Single Audits.
Our consideration of the internal control over compliance would not necessarily disclose all matters '
in the internal control that might be material weaknesses. A material weakness is a condition in
which the design or operation of one or more of the internal control components does not reduce to
a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, '
contracts, and grants that would be material in relation to a major state program being audited may
occur and not be detected within a timely period by employees in the normal course of performing
their assigned functions. We noted no matters involving the internal control over compliance and '
its operation that we consider to be material weaknesses.
This report is intended solely for the information of the City of Seward's management, Honorable
Mayor and City Council, and the State of Alaska, and is not intended to be and should not be used
by anyone other than these specified parties.
March 23, 2001
143
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