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HomeMy WebLinkAbout2001CAFRI CITY OF SEWARD n 1 COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year 1 Ended December 31, 2001 A Parks & Rec COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF SEWARD, ALASKA THIS PAGE LEFT BLANK IIMRMONALLY 1 1 f t PART I INTRODUCTORY SECTION 1 1 1 1 Table of Content Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting List of Principal Officials Organizational Chart 1 1 1 I 1 s I CITY OF SEWARD Comprehensive Annual Financial Report Table of Contents PART I INTRODUCTORY SECTION I-VI of Contents X Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting XVII XVIIIrListofPrincipalOfficials30X Seward Chi=ns — Organizational Chart PART II - FINANCIAL SECTION Exhibit a 1 -2 Indenendeat Auditor's Resort 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 B -1 6 Fund Types Statement of Revenues, Expenditures and Changes C -1 7 in Fund Balance - Budget and Actual - General Fund Combined Statement of Revenues, Expenses and Changes D"linRetainedEarnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary E-1 10-11 Fund Types Notes to General Purpose Financial Statements 13 -38 Additional Information Combining, Individual Fund, and Account Group Statements and Schedules: General Fund: Balance Sheet F -1 39 Statement of Revenues, Expenditures and 40 Changes in Fund Balance F -2 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual F - 3 41-47 I 1 CITY OF SEWARD Comprehensive Annual Financial Report Table of Contents continued FINANCIAL SECTION, continued Exhibit Pane Additional Information continued i Combining, Individual Fund, and Account Group Statements and Schedules, continued: Special Revenue Funds: Combining Balance Sheet G -1 50 Combining Statement of Revenues, Expenditures and Changes in Fund Balances G -2 S1 Parks and Recreation: G -3 52CombiningBalanceSheet Combining Statement of Revenues, Expenditures and and Changes in Fund Balances G-4 53 Public Safety: G -S 54 Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances G-6 SS Other General Government: G -7 5fi Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances G -8 57 Debt Service Fund: H -1 59 Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance H -2 60 II CITY OF SEWARD Comprehensive Annual Financial Report Table of Contents, continued FINANCL4L SECTION, continued Exhibit age Additional Information, continued Combining, Individual Fund, and Account Group Statements and Schedules, continued: Capital Project Funds: Combining Balance Sheet I -1 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 1 -2 65 Parks and Recreation: Combining Balance Sheet 1 -3 66 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) I-4 67 Public Safety: Balance Sheet I -5 68 Combining Statement of Revenues, Expenditures and Changes in Fund Balances I-6 69 General Government: Other Combining Balance Sheet 1-7 70 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) 1 -8 71 Enterprise Funds: Combining Balance Sheet J -1 7475 Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) J -2 77 Combining Statement of Cash Flows J-3 78-79 CITY OF SEWARD Comprehensive Annual Financial Report Table of Contents, continued FINANCIAL SECTION, continued Exhibit Page Additional Information, continued Combining, Individual Fund, and Account Group Statements and Schedules, continued: Enterprise Funds, continued: Electric: Balance Sheet J-4 80-81 Statement of Revenues, Expenses J-5 82 and Changes in Retained Earnings J-6 83 Statement of Cash Flows J-7 8 Schedule of Operating Expenses 88 855 Schedule of Electric Capital Projects Water and Sewer: J -9 86 Balance Sheet Statement of Revenues, Expenses J -10 87 and Changes in Retained Earnings J -11 88 Statement of Cash Flows J -12 89 Schedule of Operating Expenses Combining Schedule of Water and Sewer Capital Projects J-13 90 Harbor. J -14 91 Balance Sheet Statement of Revenues, Expenses J -15 92 and Changes in Retained Earnings J -16 93 Statement of Cash Flows J -17 94 Combining Schedule of Harbor Capital Projects Seward Marine Industrial Center: J -18 95 Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) J -19 J -20 96 9 Statement of Cash Flows J -21 988 Schedule of SMIC Capital Projects Parking Revenue: J -22 99 Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings J -23 J -24 100 101 Statement of Cash Flows iIV 1 CITY OF SEWARD Comprehensive Annual Financial Report Table of Contents, continued FINANCIAL SECTION, continued Additionallnformation continued Combining, Individual Fund, and Account Group Statements and Schedulers, continued: Motor Pool Internal Service Fund: Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings Statement of Cash Flows Agency Funds: Combining Balance Sheet Combining Statement of Changes in Assets and Liabilities General Fixed Assets Account Group: Schedule of General Fixed Assets by Sources Schedule of Changes in General Fixed Assets Schedule of General Fixed Assets by Function and Activity Schedule of Changes in General Fixed Assets by Function and Activity General Lang -Term Debt Account Group — Schedule of General Long -Term Debt Schedule of Expenditures of Federal Awards rSchedule of State Financial Assistance 1 r r r r Exhib EM K - -1 103 K -2 104 K -3 105 L-1 107 L-2 108 M -1 109 M -2 110 M -3 111 M-4 112 N -1 113 O -1 115 P -1 116 CITY OF SEWARD Comprehensive Annual Financial Report Table of Contents, continued PART III — STATISTICAL SECTION Table 1 General Fund Revenues by Source 117 Table IA General Goverment Tax Revenues by Sources 118 Table 2 General Fund Expenditures by Function 119 Table 3 Property Tax Levees and Collections 124 Table 4 Assessed and Estimated Actual Value of Taxable Property 121 Table 5 Property Tax Rates — Direct and Overlapping Governments 122 Table 6 Special Property Assessment Collections 123 Table 7 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 124 Table 8 Legal Debt Margin 125 Table 8A Computation of Direct and Overlapping Bonded Debt 126 Table 9 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Fund Expenditures 127 Table 10 Revenue Bond Coverage 128 Table 11 Property Value, Construction and Bank Deposits 129 Table 12 Principal Taxpayers 130 Table 13 Miscellaneous Statistics 131 -132 PART IV — SINGLE AUDIT SECTION Federal Sin le Audit Reports 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 133 Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A -133 134-135 Schedule of Findings and Questioned Costs 136 Summary Schedule of Prior Audit Findings 137 Corrective Action Plan 138 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 Performed in Accordance with Government Auditing Standards 139 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 far State Single Audits 140 -141 V1 I i i 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, 2000 A Certificate of Aci tevement 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 fkmr. W reporting. coera t A < Executive Director xvII XVIII 1 CITY OF SEWARD LIST OF PRINCIPAL OFFICIALS Edgar Blatchford Term F.xvit Mayor 2003 David Brossow Vice Mayor 2003 Stu Clark Council Member 2003 Nathan pR Council Member 2003 Michael Calhoon Council Member 2042 Margaret Branson Council Member 2002 Vanta Shafer Coil Member 2002 W. Scott Janke City Manager Kristin Erchinger Finance Director Rick Gifford Director of Administrative Services David Calvert Manager of Electric Utility James Beckham Harbormaster Michael Chapman Chief of Police David Squires Fire Chief Karin Sturdy Parks & Recreation Director Patty Linville Library Director Gerald Welsh Director of Engineering and Construction Patrick Reilly CMCLM City Clerk Bradley Meyen City Attorney Wohlforthyassar, Johnson & Brecht The City of Seward is a home -rule city with a council- manager form of government. Legislative powers of the City of Seward are vested in a council consisting of a mayor and six council members. The mayor and each council member are elected from the city at large. The term of office is two years. The appointed officers of the city include the city manager, city clerk, and the city attorney. The city council generally meets on the second and fourth Mondays of each month in the City Council Chambers located in the City Hall Building located at 410 Adams Street in Seward, Alaska. XVIII 1 1 1 IIL I XI% THIS PAGE LEFT BLANK UTrENTIONALLY a PART II f FINANCIAL SECTION Independent Auditor's Report General Purpose Financial Statements Combining, Individual Fund and Account Group Financial Statements and Schedules 11 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 Resort 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, 2041. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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, 2001 and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2002 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. McGLADREY NETWORK An n[7reP.n011ny C wnwl Me rrc,2 i\'iU;sllw l!' Se. `'GGti !l f!KNjh (iSM I 1 u diiu! -i. offices::1nchorage. _Bethel: Kenai & Seward u 2 tHonorableMayorandCityCouncil City of Seward, Alaska general se financial Our audit was performed for the purpose of forming an opinion on g purpose Schedule of statements of City of Seward, Alaska taken as a whole. The accompanying Expenditures of Federal Awards, Schedule of State Financial Assistance, an wedintheofcontentspstatementsandscheduleslistedindividualfund, and account group alofadditionalanalysisandarenotarequiredpartofthegeneral purposepresentedforpurposesFederal of City of Seward, Alaska. The Schedule of Expenditures States, financial statementsAwardsisrequiredby U.S. Office of Management and Budget Circular A-133, Audits oftheScheduleofStaffFinancial Local Governments, and Non -Profit Organizations and by the State of Alaska Office of Management and Budget, State of AlaskaAssistanceisrequired Audit Guide and Compliance Supplement for State Single Audits. Suchr has subjected to the auditing procedures applied in our audit of the generalisfairlypresented, in all material respects, in relation to thestatementsand, in our opinion, financial statements taken as a whole. general purpose 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. Match 27, 2002 u 2 I GENERAL PURPOSE FINANCIAL STATEMENTS The General Purpose Financial Statements include the basic financial statements and notes to the financial statements which are essential to the fair presentation of financial position and results of operations and the cash flows of the proprietary fund types. e 0 I GENERAL PURPOSE FINANCIAL STATEMENTS — OVERVIEW 1 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. 11 Z5 0000 r n n ap 25 1bn "R Ct N do S = 4 ."MNrON NNn O O 0. O •+ •O I O fy, of pp• M O N r 00 y N h Nwl I . . . . I . . . I . I . n va M1 ' I I I . . . 1 . I 1 . . 1 1 ry.. . . . . 1 I 1 i . . . . t` per+ M1 W 4:. 3 F-N 40" O IAMN M1. on O C4 N N f N qr ch n .. -.. 1 II` I M p ... N O • pb OH6 NMipheriiOO Mr: OHi Q V! H H U oG ~ 1 im N OO J eN+f P a I I I a r I r I I r 1 1 MM eNrS fM+ l N N L6 yyy VOI N M1 iii • + '^ wr+ e ado w n M N~ N 1 f = w t+S T yt o QQQ1 h 00 qt H N oc N f N a N^ N n V Q CL71I a M1 a O M 51, a N N a us. u I- CA u N e 0 eMn 00 fV N r H+ r0 O P Q O,OO_ 7; 8 +Nip VNY pp aNNO h en a oa 8 epp p w%M rn 10 0 O, o w r P 4O OM1O m aM0 eP+ a ry a?pq ery C, M1 P v1 M1 O .•+ ni M1 8 1M vNi 00 r iM+ T O O 0 P` 00 Y 1 iiiEEEiii p N vi ery"O POi h 01 r'rONv p+ o Mso Se.vpi a In can r1 I N im N OO J eN+f P a I I I a r I r I I r 1 1 MM eNrS fM+ l N N L6 yyy VOI N M1 iii • + '^ wr+ e ado w n M N~ N 1 f = w t+S T yt o QQQ1 h 00 qt H N oc N f N a N^ N n V Q CL71I a M1 a O M 51, a N N a us. u I- CA u CITY OF SEWARD Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Year Ended December 31, 2001 with Comparative Totals for Year Ended December 31, 2000 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 1 1 1 1,735,231 8,197 - - 1,743,428 Totals 1,984,845 193,493 - - 2,178,338 Memorandum On 1,152,948 Special Debt Capital 981,027 789,615 gieneml Fovenwe Berm. 258,832 S 3,913,556 3,913,556 3,953,139 134,396 215,924 134,396 139,871 1,120,299 193,387 726,807 2,040,493 1,667,366 2,161,177 2,161,177 2,179,832 16,378 16,378 14,786 447,888 21,914 16,515 486,317 484,089 290,694 18,654 300004 339,348 5_ 96L664 8,084,388 212,041 21,914 773,322 9,091,665 9,035,747_ 1,735,231 8,197 - - 1,743,428 1,601,677 1,984,845 193,493 - - 2,178,338 2,463,209 1,152,948 1,152,948 981,027 789,615 11,981 - - 801,596 715,409 258,832 258,832 251,865 6,614 215,924 642,055 - 857,979 840,997 1,163511 1,163,511 1 ! 76,757 6,137,395 213,671 642,055 1,163,511 8,156,632 8 055 Excess of revenues over(under)expenditures 1,946,993 (1,630) (620,141) (390,189) 935,033 998,192 Other financing sources (uses): Operating transfers f wn other funds 513,621 - 740,654 246,474 1,500,749 1,490,259 Operating transfers other fiends !,216 687 - - (75, (1,291 68T IL L8,706706 ' Net other financing sources (uses) 703,0 - 740,654 17_ 1,474 2 OG2 28 447 Excess of revenues and other ' financing sources over (under) expenditures and other uses 1,243,927 (1,630) 120,513 (218,715) 1,144,095 969,745 4,697,463 47,346 564,909 642,131 5,951,849 4,986,914 ' Beginning fund balances - 53,748 58,060 - Residual equity traasfets from other funds 4,312 - - 959 943 4 312 42,889 1007 144 4 810 IResidualequitytransferstootherfunds ) , 4,985,759 41,404 685,422_ 434 2_75 6,186^0 5,9 51, 49 Ending fund balances r--- , See accompanying notes to general purpose financial statements. ' 6 CITY OF SEWARD Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund Year Ended December 31, 2001 with Comparative Totals for Year Ended December 31, 2000 1 Revenues: Taxes Licenses and permits t Intergovernmental Charges for services Fines and bails Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Public works Parks and recreation Library Debt service Total expenditures Excess of revenues over expenditures Other financing sources (uses): Operating transfers from other funds Operating transfers to other funds Net other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other uses Beginning fund balance Residual equity transfers from other funds Residual equity transfers to other funds 2001 Variance Favorable Budget Actua (Unfavorable) Exhibi -1 Actual 3,984,303 3,913,556 70,747) 3,953,139 113,600 134,396 20,796 139,871 995,246 1,120,299 125,053 984,231 1,620,001 2,161,177 541,176 2,179,832 15,000 16,378 1,378 14,786 175,000 447,888 272,888 438,005 184,350 290,694 T 106,344 247,461 7,087,500 8,084,,388 996,888 7,9572325 1,899,571 1,73 5,231 164,340 1,592,475 2,172,427 1,984,845 187,582 1,970,643 1,204,615 1,152,948 51,667 981,027 813,120 789,615 23,505 711,721 270,412 258,832 11,580 245,710 241,158 215,924 25,234 217,780 6,601,303 6,137,395 463,908 5,719,356 486,197 1,946,993 1,460,796 2,237,969 529,345 513,621 15,724) 179,846 1,234 034 1.216.6871 17,347 1,328 804 704,689 703 066 1,623 1,148,958 218,492) 1,243,927 1,462,419 1,089,011 4,697,463 4,697,463 - 3,613,262 4,312 4,312 - 949,084 959,943 10,859 4,810 Ending fund balance 8 3,5? 7 4, 85,759 1,4 55,872 4,697,463 See accompanying notes to general purpose financial statements. 7 THIS PAGE LEFT BLANK INTENTIONALLY I 1 I CITY OF SEWARD Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Year Ended December 31, 2001 with Comparative Totals for Year Ended December 31, 2000 Net earnings (loss) increase in retained earnings for corrections to contributed capital and accumulated depreciation Amortization of contributed capital Increase in retained earnings 1 Beginning retained earnings Operating revenues Operating expenses Earnings from operations before depreciation Service Depreciation S 10,502,031 from 10,819,806 10,225,858 Earnings (loss) operations Non - operating revenues (expenses): 2,924,433 Gain on disposal of property and equipment 3,242,208 2,914,818 investment income 122,162 interest expense Other revenues Net non - operating revenues (expenses) Earnings (loss) before operating transfers Operating transfers from other funds t 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 270,444 Residual equity transfers to other funds Ending retained earnings t 1 See accompanying notes to general purpose financial statements. 9 389,011) 195,613 (193,398) (503,063) 202,988 1,964,140 2,299,329 Totals 301 270,444 Memorandum On! 287,534 Internal 554,140) Entcrprjsc Service 2M S 10,502,031 317,775 10,819,806 10,225,858 71577,598 71577,598 7,311,040 2,924,433 317,775 3,242,208 2,914,818 3,313,444 122,162 3,435,606 3,417,881 389,011) 195,613 (193,398) (503,063) 829,570) 193,259 (636,311) (400,788) 111,593 2,590,722 9,729 _2,6()O.,.451 2,588,524 1,761,152 202,988 1,964,140 2,299,329 301 270,444 17,090 287,534 559,997 554,140) 19,444) 573,584) 515,368) 52,199 52,199 28j898 231,497 2,3 233,8 73,,828 620,508) 193,259 427,249) 429,235) 381,399 381,399 285,133 590 461 590,461 256,6 209 062 209,06 28,447 829,570) 193,259 (636,311) (400,788) 111,593 2,590,722 9,729 _2,6()O.,.451 2,588,524 1,761,152 202,988 1,964,140 2,299,329 14,471,252 330,879 14,802,131 12,502,802 290 780 z90 780 - 15,941624 53333,,8867 16,475,491 14,802,131 CrrY OF SEWARD Combined Statement of Cash Flows - All Proprietary Fund Types Year Ended December 31, 2001 with Comparative Totals for Year Ended December 31, 2000 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 non - operating revenues increase (decrease) in allowance for doubtful receivables Increase) decrease in assets: Receivables Prepaid expenses Inventory Increase (decrease) in liabilities: Accounts payable Customer deposits Accrued annual lave other accrued liabilities Due to other funds Deferred revenue Retirement incentive program payable Net cash flows from operating activities Cash flows from non - capital financing activities: operating transfers from other funds operating transfers to other funds Operating grants received Net cash flows from non - capital financing activities Exhibit E-1 1 Totals Memorandum Only) Internal End Service an 2M S (389,011) 195,613 (193,398) (503,063) 3,313,444 122,162 3,435,606 3,417,881 52,199 52,199 3,509 8,546 8,546 8,721) 76,804) 76,804) 21,310 10,716) 10,716) 21,836) 21,836) 37,319 325,194) 325,194) 743,517 16,268 16,268 6,777) 6,417) 6,417) 6,940) 36,991) 36,991) 15,811) 20,688) 7,435 7,435 33,536) 20,31 20 314 3662 2,510,604 317,775 2,828 379 3,624,338 381,399 381,399 285,133 590,461) 590,461) 256,686) 24,800 209, 209 062 53,247 10 1 CITY OF SEWARD 1= Yhibit E -1. AU111ed Combined Statement of cash Flows - All Proprietary Fund Types, continued Totals Memorandum Onl Internal M 2000 unjo Cash flows from capital and related financing activities: S _ 3,008,366 proceeds from issuance of long-term debt 1,016,116) 87,263) 1,103,379) 1' 1, 83 Principal payments on long-term debt 487,858) 12,635) 500,493) Interest payments on long -term debt 1 55,000 155,000 500 Cash held by fiscal agent Acquisition of property, plant and equipment 5,451,931) 46,414 109,112) 5,561,043) 46,414 5,915,315) 44,209 301 collections on special assessments Proceeds from sale of properly and equipment 1,523,521 34,999 1,558,520 4,196,975 Contributed capital Residual equity transfers to other funds 290,780) 290,780) 3,237, 589 Decrease in deferred revenue 4 Penalties and interest on special assessments Net cash flows from calutal S 521 750 l74 011 5 695 76l 3 377 436 and related financing activities iCash flows frown investing activities - 270,444 1709 287,534 559,997 investment income received Net increase (decrease) in cash and investments 2,949,754) 160,854 2,788,900) 860,146 1 19p327 456,980. 11,647 ,307 10 787 ,161 Beginning cash and investments S 8 240 5,73 617,834 8,858,407 _.. 11 Ending cash and investments Reconciliation of cash and investments to balance sheet: Cash and investments: 7,684,850 617,834 8,302,684 Current assets 555,723 5723 Restricted assets 8,240,573 617 834 8,958,407 1 See accompanying notes to general purpose financial statements. 11 THIS PAGE LEFT BLANK iNTENnONALLY ' 1 1 1 12 1 t NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS to the General Purpose Financial Statements representThenotes a summary of significant account policies and other notes to the financial statements necessary for adequate disclosure. 0 CITY OF SEWARD Notes to General Purpose Financial Statements 1 December 31, 2001 1} Summary of SieBfflcant Accounting Policies Qrganization 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. r 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. 1 1 13 Revortin¢ Ent 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, 2001, 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 accounting principles generally accepted in the United States of America as applicable to governments. The following is a summary of the more significant policies: Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmentforresourcesareallocatedtoandaccountedforinindividualfundsbaseduponthepurpose 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 T The General Fund is used to account for all financial resources except those required to be accounted for in another fund. The General Fund is the City's operating fund. Special Revenue Funds are used to account for the proceeds of specific revenue sources other than major capital projects) that are restricted to expenditures for specified purposes. 1 1 13 CITY OF SEWARD Notes to General Purpose Financial Statements, continued 1 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). Pro ri Fund TyW 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 body has decided thax periodic determination ofcharges; or (b) where the governing 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 TyM 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 Lori -Term Liabilities The accounting and reporting treatment applied to the fix ed 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. availableTheirreportedfundbalance (net current assets) is considered a measure of spendable resources. Governmental fund operating statements present increases revenues and other financing sources) and decreases (expenditures and other uses) m 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 1 Portions of the property, plant and equipment of the Enterprise Funds have been constricted 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. it 1 15 G'li'TY OF SEWARD Notes to General Purpose Financial Statements, continued Summaa of Si scant Accounting Policies, continued Fixed Assets and Long -Term Liabilities. continued Account Group, rather than in governmental funds. Public domain („infrastructure ") general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, are not capitalized along with other general fixed assets. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair market value on the 1 date donated. Long -term liabilities expected to be financed from the governmental funds are accounted for in the General Long -Term Debt Account Group, not in the governmental funds. Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect current assets, such long -term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long -Term Debt Account Group. The two account groups are not funds. They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. All proprietary funds are accounted for on a cost of services or "capital maintenance" imeasurement 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 constricted 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. it 1 15 C[TY OF SEwARD Notes to General Purpose Financial Statements, continued Summa of Significant Acconaft-DO-KC319b continued Fixed Assets and Lon -Term Liabiliti mc—OukuA Estimated lives of major asset categories are as follows: Life in e ' Buildings 10 -50 improvements other than buildings 10-50 , Equipment 2 -30 Measurement Focus and Basis ofAAceou__ntmg Measurement focus refers to which resources are being measured when reporting financial position and performance. Basis of accounting refers to when revenues, expenditures, the assets and liabilities are recognized in the accountsexpensesandtransfers, and related 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 accrual, i.e., both measurable and available. Available means collectible within the current to be used to pay liabilities of the current period. The period or soon enough thereafter available period for the City is generally 60 days after year -end. All primary revenue sources have been treated as susceptible to accrual. Expenditures are recognized on the accrual basis with the exception of principal and interest on general long -term debt, which are reported only when due. proprietary fund types are accounted for on the accrual basis of accounting. Their revenuesarerecognizedintheperiodearnedandexpensesarerecognizedintheperiodincurred. Agency Fund assets and liabilities are accounted for using the modified accrual basis of accounting similar to that utilized by the governmental fund types. pro rie Fund T es 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) o pronouncements, e0' 8 which e City has elected conflict with GASB and follow onlyhavebeenissuedafterN ' pronouncements subsequent to November 30, 1989. Central Treasur A central treasury is used to account for the City's cash and investments to maximize interest income. Investments are stated at fair value. Investment earnings are allocated among the funds based on their respective cash balances. 16 Property Taxes as of January 1. Pursuant topropertytaxesareliensontheassessedvalueoftaxableproperty Alaska Statutes, the City establishes the mill rate and tax levy on or before June 15. The City is located within the Kenai Peninsula Borough, which acts as the City's agent in thebillingandcollectionofpropertytaxes. Tax bills for one -half of the taxes are mailed prior to July 1 and are payable on August 15; tax bills for the second-half V e taxes by October 1 and are payable on November 15. City property recognized in the fiscal year in which they are collectible and available (collected within sixty days after year -end) to finance expenditures of the fiscal year. At December 31 , the delinquent real and personal taxes not currently available are reflected as deferred revenues of the General Fund. interfund Transactions During the course of normal operations, the City has numerous transactions between funds, including expenditures and transfers of resources to provide services, construct assets, andservicedebt. 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. 1 17 CITY OF SEWARD Notes to General Purpose Financial Statements, continued SU 3ary of Si nifrcant Accounggg POWIM contia ed Cash and Cash Equivalents For of the statement of cash flows, the proprietary funds consider all cash andpurposes 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. lnventoInventories are valued at cost in governmental funds and at the lower of cost or market in the first The cast is recordedproprietaryfunds. Cost is determined by the first -in, -out method. as an expenditure at the time individual inventory items are consumed. RevenuesGrantsandOtherIntergovernmental In applying the measurable and available concepts to grants and intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of these revenues. In one, monies or before any amustbeexpendedonthespecificpurposeproject earned "; therefore, revenues are recognized based upon expenditures recorded. other, monies are virtually unrestricted as to purpose of expenditure and are usually revocable only for failure prescribed receip orpearlier if the measurable andresourcesarereflectedrevenuesatthetim available criteria are met. Property Taxes as of January 1. Pursuant topropertytaxesareliensontheassessedvalueoftaxableproperty Alaska Statutes, the City establishes the mill rate and tax levy on or before June 15. The City is located within the Kenai Peninsula Borough, which acts as the City's agent in thebillingandcollectionofpropertytaxes. Tax bills for one -half of the taxes are mailed prior to July 1 and are payable on August 15; tax bills for the second-half V e taxes by October 1 and are payable on November 15. City property recognized in the fiscal year in which they are collectible and available (collected within sixty days after year -end) to finance expenditures of the fiscal year. At December 31 , the delinquent real and personal taxes not currently available are reflected as deferred revenues of the General Fund. interfund Transactions During the course of normal operations, the City has numerous transactions between funds, including expenditures and transfers of resources to provide services, construct assets, andservicedebt. 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. 1 17 Crff OF SEWARD Notes to General Purpose Financial Statements, continued Summon of si ificant &ccountine P lic Accrued Leave Accrued leave (vacation and sick leave) is recorded as an expense in the proprietary fund types in the period it is earned by the employees, with the total liability for accrued leave presented in the related fund balance sheet. The amount of accrued leave recorded as expenditures in the governmental fund types is the amount accrued during the year that would normally be liquidated with available spendable resources. Only the current Portion of the liability is recorded in the governmental fund types with the remainder reported in the General Long -Term Debt Account Group. Encumbrances , Encumbrance accounting, under which purchase orders, contracts and other commitments for expenditures are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund during the , year. However, it is the City's policy to stop issuing Purchase orders in early December. Outstanding purchase orders, if any, at December 31, arc cancelled and new ones are issued in the subsequent year. As a result, there are no outstanding encumbrances at t December 31, 2001. Deferred Grant Revenue ' Amounts received from grantor agencies, which are restricted as to use and have not been expended for the intended use, are shown as deferred revenue. Pension Plans Substantially all employees of the City participate in the Public Employees' Retirement System (PERS) administered by the State of Alaska, with the exception of certain Electric Fund employees and the City Manager. Com arative Data Comparative total data for the prior year has 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 accounting principles generally accepted in the United States of ' America. Neither is such data comparable to a consolidation. Jnterhmd eliminations have not been made in the aggregation of this data 1 18 1 CITY OF SEWARD Notes to General Purpose Financial Statements, continued 2) Stewardship. Compliance and Accountability 13ud Accountin An operating budget is adopted each fiscal year for the General Fund on the same modified accrual basis used to reflect actual revenues and expenditures• Appropriations for this fund lapse at year -end to the extent that they have not been expended or encumbered. Budgetary control is exercised at the department level. The City Manager is authorized to transfer budget amounts between departments within a fund or between cost centers within a L 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 Appropriation Appropriations General Fund expenditures $ 6,303,510 6,601,303 General Fund transfers out 1,885,778 2,183,118 The following funds had a deficit in fund balancetroWned earnings at December 31, 2001: Library Project Capital Project Fund $ (3,128) Seward Marine Industrial Center Enterprise Fund (372,763) 1 Restrictions of Sales Tax Revenues When the City transferred the operations of the Hospital to Providence Alaska Medical Center on 3uly 1, 19%, the City agreed to restrict 1% of the sales tax for the benefit of the Hospital. During construction, the restricted sales tax was used to offset losses and transition costs. Subsequent to completion of the construction, the restricted sales tax has been used to fund the debt service on the Hospital general obligation bonds. All sales tax revenue is recorded in the General Fund. The restricted portion is then transfetrod to the Debt Service Fund 1 1 19 CITY OF SEWARD ' Notes to General Purpose Financial Statements, continued 3) Cash and Investments The City of Seward utilizes a central treasury that is available fund's portion of the central treasury is displayed on the investments" or included in "due to other funds." for use by all funds. Each balance sheet as "cash and Deposits At December 31, 2001, the carrying amount of the City's deposits, including cash on hand, was $3,919,232 and the bank balances totaled $4,233,459, All of the bank balances were covered by federal depository insurance, securities investor protection corporation or by collateral held by the City's agent in the City's name. lnv_ 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 Insured or registered, or securities held by the City or its agent in the City's name. Category 2 Uninsured and unregistered, or agent in the CiWs name. L 1 with securities held by the counterparty's mist department 1 Category 3Uninsuredand unregistered, with securities held by the counterparty, or by its mist department or agent, but not in the City's name. Categga 1 2 3 LOW Overnight repurchase 4,058,277 agreement $ - 4,058,277 - U.S. government securities 4 00 244g 2.872,345 - 6.87 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, 2001, which totaled 555,723 is included in investments. 0 1 CITY OF SEWARD Notes to General Purpose Financial Statements, continued CjMb and Investments continued investments, continued A reconciliation of cash and investments as shown on the combined balance sheet follows: Cash on hand $ 1,860 Carrying amount of deposits 3,917,372 1 Carrying amount of investments 10,933,121 Cash and investments as shown on the combined balance sheet: $ 14,296,630Cashandinvestments Restricted assets - cash and investments 5 2314-852 4) Fizzts A summary of changes in general fixed assets follows: Balance at Balance January 1, December 31, 2001 Additions Deletions 2001 Land and land _ improvements $ 4,053,605 179,600 4,233,205 Buildings 51,318,129 73,423 - 51,391,552 Improvements other _ than buildings 10,883,191 173,856 11,057,047 Equipment 3 1 1511.491 495,083 105,0 69,406,416 921,962 105,018 3 5_ 4,_ 1S56 70,223,360 Fixed assets in service Construction in progress _1,3 —32, 17 8 4.074.767 296.6_31 5,110.31_4 0-7738.594 1-296,222 491-02 Z=0 zl 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, 2001 follows: Internal Enterprise Service Fundsi Land and land improvements 16,267,310 Buildings 4,650,397 Impmvements other than buildings 88,294,762 Equipment 8,290,456 17. 60,011 Property, plant and equipment in service 117,502,925 1,760,011 Less accumulated depreciation 48,482,973) 876,248) Net property, plant and equipment in scrvice 69,019,952 883,763 Construction in progress 10A13.124 Total property, plant and equipment 19,433.076 883,763 5) Interfund Receivables and Pa ablea Interfund receivable and payable balances at December 31, 2001, are as follows: Interfund Interfund Receivables Payab les General Fund 263,229 Avalanche 2000 Special Revenue Fund 195,620 Flood Mitigation Capital Project Fund 67,649 Totals 2r3 1 1 22 CITY OF SEWARD Notes to General Purpose Financial Statements, continued 6) Operating Transfers A summary of operating transfers between funds for the year ended Deo mber 31, 2001 follows: From To Other Other Eu-ndl Funds General Fund: Debt Service Fund 740,654 Capital Project Funds: Library Project 37,905 City Hall Facilities and Equipment 404 Fourth and Adams Park 56,325 Enterprise Funds: Harbor 123,557 9,651 Electric 366,985 3,130 Water and Sewer 7,000 9,734 Seward Marine Industrial Center X6.079 X58.884 Total General Fund 513,621 1,216.687 Debt Service Fund from General Fund 74065.4_ Capital Project Funds from General Fund: Fire Hall Roof Repair 37,905 City Hall Facilities and Equipment 404 Fourth and Adams Park 56,325 Capital Acquisition Fund to/from other funds: Capital Acquisition 75,000 Water and Sewer Enterprise Fund 76,840 Fourth and Adams Park 75,000 Total Capital Project Funds 246.474 75.000 Enterprise Funds to/from General Fund: Seward Marine Industrial Center 358,884 16,079 Harbor 9,651 123,557 Electric 3,130 366,985 Water and Sewer 9,734 7,000 Water and Sewer Enterprise Fund to Capital Acquisition Capital Project Fund 76.840 Total Enterprise Funds 381.399 590,461 Total operating transfers 1.882.148 1,$82,14$ 1 i23 I CITY OF SEWARD Notes to General Purpose Financial Statements, continued 7) Residual Equity Transfers A summary of residual equity transfers between fiords for the year ended December 31, 2001 follows: From To Other Other Funds Funds General Fund: Special Revenue Funds: High Risk Traffic Enforcement $ 2,250 Seward Community Cemetery 2,062 Gateway Subdivision Capital Project Fund 10,859 Harbor Enterprise Fund 949,084 Total General Fund 4,312 959,943 Special Revenue Funds to General Fund: High Risk Traffic Enforcement 2,250 Seward Community Cemetery 2,062 Total Special Revenue Funds 4,312 Capital Project Funds: Gateway Subdivision from General Fund 10,859 Capital Acquisition from Fuel Tank 8,995 Library Project from Firehall Project 33,894 Fuel Tank to Capital Acquisition 8,995 Firehall Project to Library Project 33,84 Total Capital Project Funds 53,748 42.889 Enterprise Funds: Harbor from General Fund 949,084 - Harbor from Electric 255,780 - Harbor to Motor Pool Internal Service Fund - 35,000 Electric to Harbor - 255.780 ' Total Enterprise Funds 1,204,864 290,780 Motor Pool Internal Service Fund from Harbor ' Enterprise Fund 35,000 - Total residual equity transfers $ 1,297.924 1,297-2;4 ' The residual equity transfers from other funds were recorded in contributed capital of the Enterprise Funds and Motor Pool Intemal Service Fund. 24 1 CITY OF SEWARD Notes to General Purpose Financial Statements, continued 8) Accrued Leave Accrued leave estimated to be paid with current available resources is recorded in the General Fund. The portion to be paid from future resources of the General Fund 229,151 at December 31, 2001) 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, 2001 $ 190,016 Increase 39,135 Balance at December 31, 2001 S 22 9) Long-Term Debt General Obligation Bonds The City has issued general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both general government and proprietary activities. These bonds are reported in the Enterprise Funds if they are expected to be repaid from proprietary revenues. General obligation bonds are direct obligations and pledge the full faith and credit of the government. General obligation bonds at December 31, 2001 are as follows: Interest B ance 3,990,0001993 refunding electric serial bonds, due in semiannual installments of $510,000 to $560,000, plus interest 5.15throughOctober1, 2004 ° /a to 5.35% $ 1,610,000 2,030,000 1993 refunding harbor/ general government serial bonds for the 19$7 bonds, Series A, due in semiannual installments of $1$5,000 to 240,000, plus interest through December 1, 2007 5.05% to 5.65% 1,265,000 1 1 25 CITY OF SEWARD Notes to General Purpose Financial Statements, continued Long.-Term Debt continued General Obligation Bonds. continued Interest RAIM B 1,465,0001993 refunding general government serial bonds for the 1990 bonds, Series A. due in semiannual installments of $100,000 to $165,000, plus interest through December 1, 2011 5.05% to 5.8% 1,280,000 7,500,0001996 hospital serial bonds, due in semiannual installments of $300,000 to $825,000, plus interest through October 1, 2013 4.9% to 6.75% 6,620,000 Total general obligation bonds 19-22 Revenue bond principal and interest are payable from resources generated by a particular 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 bonds outstanding at December 31, 2001 are as follows: Interest atA Balance 3,225,0001995 Electric revenue bonds, due in annual installments of $140,000 to $290,000, plus interest through June 1, 2015 4.85% to 7.35% $ 2,870,000 3,000,000 2000 Harbor revenue bonds, due in annual installments of $90,000 to $235,000, plus interest through October 1, 2021 4.85% to 5.5% 3000 440 Total revenue bonds A reconciliation of bonds payable to the amount reported on the Combined Balance Sheet All Fund Types and Account Groups follows: Total general obligation bonds Less unamortized loss on 1993 refunding bonds Revenue bonds 10,775,000 1912.712) 10,582,288 5.870.000 j 26 1 CITY OF SEWARD Notes to General Purpose Financial Statements, continued Lone -Term Debt, continued General obligation bond and revenue bond debt service requirements to maturity are as follows: General Long -Term Year Ending Enterprise Fun& _ Debt Account Group ^_ Totals p2genitwr 31 Principal terest ci al lntere Princi 1 laung 2002 S 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 465,287 279,890 634,713 337,938 1,100,000 617,828 2007 -2021 4.802.641 1,608,005, 5,472.3 59 421. 4,465 10,275,000 3,032,470 521.72 3.408.813 MD.= 3415.713 16-645,000 6-§24-526 Notes payable by the Water and Sewer Enterprise Fund at December 31, 2001 are as follows: Interest Rates Balance 26,231 note payable to State of Alaska Department of Environmental Conservation, due in annual installments of $1,333, plus interest through July 15, 2014 2.5% 17,325 901,851 note payable to State of Alaska Department of Environmental Conservation, due in annual installments of $63,406, including interest through November 5, 2013 2.5% 650,398 G67, 723 1 27 Obligation Payable to the State of Alaska Public Em to ees Retirement SyAtern ' 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, 2001, 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. 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. 1 1 28 1 CITY OF SEWARD Notes to General Purpose Financial Statements, continued Lone-Term Debt. continued Debt service requirements to maturity on the notes payable are as follows: Year Ending 2.5% Note Payable 2.5% Note Payable Totals December 31 Princi al Interest Principal Interest Principal Interest 2002 1,333 433 47,146 16,260 48,479 16,693 2003 1,333 400 48,324 15,081 49,657 15,481 2004 1,333 366 49,532 13,873 50,865 14,239 2005 1,333 333 50,771 12,635 52,104 12,968 2006 1,333 300 52,040 11,366 53,373 11,666 2006 -2014 10,660 1200 402,585 36,651 413,245 37.851 17,325 LM 659-328 105-80 667.22 1WLM Obligation Payable to the State of Alaska Public Em to ees Retirement SyAtern ' 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, 2001, 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. 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. 1 1 28 1 i i CITY OF SEWARD Notes to General Purpose Financial Staternents, continued Lon -Term Debt continued Changes in Long -Term Liabilities During the year ended December 31, 2001, the following changes occurred in long -term liabilities: General Government Compensated absences General obligation bonds Retirement incentive program State of Alaska EntMrise Funds General obligation bonds Unamortized loss on refunding Revenue bonds Capital leases Retirement incentive program Notes payable Internal Service Fund Balance at Balance at January 1, December 31, 2001 Additions Reductions 2001 190,016 39,135 - 229,151 8,513,277 - 390,005 8,123,272 49,053 - 24,527 24,526 1.082.570 - - 1.082.570 3 3,421,723 769,995 2,651,728 234,875) 42,163) 192,712) 6,000,000 130,000 5,870,000 410,000 70,000 340,000 40,637 20,319 20,318 713.841 46.118 667,723 4. PAMMI Capital leases $ 178.869 .373.044 $7,ZQ 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, 2001 as follows: Electric Enterprise Fund $ 307,205 Harbor Enterprise Fund 248,518 Total restricted cash and investments $ 555123 29 CITY OF SEWARD Notes to General Purpose Financial Statements, continued Long -Term Debt. continued 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. Operating income before depreciation Add: Payment in lieu of taxes Investment income Available for debt service Requirement Excess of revenue over requirement Electric Harbor 1,759,914 602,426 542,581 113,854 1_ 1.1,327 76.615 2,413,822 792,895 387.845 158518 2...Z= 634377 10) Capitalized Leases The City has entered into lease agreements as lessee for financing the acquisition of a motor grader, loader and trailer, fire equipment, 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 that have an outstanding balance as of December 31, 2001: Machinery and equipment Less accumulated depreciation Carrying value 30 Harbor Enterprise Fund 856,546 328,347 528.199 Internal Service Fn 373,044 1 7i L I Present value of future minimum lease payments 340,000 464,650 Less current portion 75,000 101,824 Long -term portion $265, 362-82§ 11} Retirement Incentive Program In 1999, the City elected to participate in the Public Employees' Retirement System retirement incentive program. The program required the City to pay $134,532 to the State of Alaska in three installments of $44,844 on August 1, 2000, 2001, and 2002. The remaining annual installment of $44,844 is due August 2002. 1 31 MY 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 not minimum lease payments at December 31, 2001: i Enterprise internal ServiceYearEnding December 31 Funds fUnd 2002 99,715 123,852 2003 99,353 112,712 2004 103,553 64,172 1 2005 101,983 64,172 2006 64,172 2007 -2008 112,045 Total minimum lease payments 404,604 541,125 Less interest 64,604 76,475 Present value of future minimum lease payments 340,000 464,650 Less current portion 75,000 101,824 Long -term portion $265, 362-82§ 11} Retirement Incentive Program In 1999, the City elected to participate in the Public Employees' Retirement System retirement incentive program. The program required the City to pay $134,532 to the State of Alaska in three installments of $44,844 on August 1, 2000, 2001, and 2002. The remaining annual installment of $44,844 is due August 2002. 1 31 CITY OF SEWARD Notes to General Purpose Financial Statements, continued 12) Defined Benefit Pension Plan Descri Lion 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, post employment healthcare, death, and disability benefits. Benefit and contribution provisions are established by State law and may be amended only by the State Legislature. The plan is included in a comprehensive annual financial report that includes financial statements and other required supplemental information. The report is available at the following address: Department of Administration Division of Retirement and Benefits P.O. Box 110203 Juneau, AK 99811 -0203 Funding Policv For PERS, employees are required to contribute 6.75% (7.5% for peace officers and firefighters) of their annual covered salary. Under the plan, the funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as a percentage of annual covered payroll, are sufficient to accumulate sufficient assets to pay both pension and post employment healthcare benefits when due. The City's contribution rate for PERS for 2001 follows: Pension Post employment healthcare Total contribution rate January 1 July 1 to to June 30 December 31 4.82% 3.98% IN/0 IW% 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, 2001, the City's pension cost of $197,225 for PERS was equal to its required and actual contributions. W 1 I 7 CITY OF SEWARD Notes to General Purpose Financial Staternents, continued Defined Beneflt Pension Plan, continued Annual Pension Cost . Mtimued The required contribution was determined as part of the June 30, 1998 actuarial valuation. The significant actuarial assumptions used in the valuation of the plan follow: 1 I 1. Investment return of 8.25% per annum, compounded annually, net of expenses; 2. Projected salary increases of 5.5% for the first five years of employment and 4.5% per year thereafter, 3. Health cost inflation of 6.5% in 1998, and 5.5% in 1999 and thereafter; 4. Total inflation, as measured by the Consumer Price Index for urban and clerical workers for Anchorage, is assumed to inaoease 40/9 annually; and 5. Asset valuation — assets are valued at fair value; the asset valuation method recognizes 20% of the investment gain or loss in each of the current and preceding four years. Three -year trend information for PERS follows: Annual Percentage Period Pension of APC Endin Cost (AM Contributed December 31, 1999 December 31, 2000 December 31, 2001 F 107,653 217,749 197,225 1 33 100% 100% 100% Net Pension Obligation CITY OF SEWARD , Notes to General Purpose Financial Statements, continued 1 Defined Benefit Pension Plan, continued A schedule of funding progress for PERS for the three most recent actuarial valuations Ifollows: 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, 2001 was $46,869. 14) Deferred Compensation Plan 1 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. 34 1 Unfimded Assets in Excess of) Unfimdod Liability as Actuarial Actuarial Actuarial Assets in Percentage Valuation Value of Accrued Excess of) Funded Covered of Covered Date Assets Liabili LiabiliV 92 Payroll Payn June 30,1997: Pension 9,624,000 8,922,000 702,000) 108% 2,977,000 (24 %) Post employment healthcare 3,587,000 3,325,000 262,000) 108% 2,977,000 (9 %) June 30,1998: Pension 10,707,000 10,172,000 535,000) 105% 2,929,000 (18 %) Post employment healthcare 4,271,000 4,058,000 213,000) 105% 2,929,000 (7 %) June 30, 1999: Pension 10,897,000 10,052,000 845,000) 108% 2,871,000 (290/*) Post employment 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, 2001 was $46,869. 14) Deferred Compensation Plan 1 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. 34 1 CITY OF SEWARD Notes to General Purpose Financial Statements, continual Deferred Compensation Plan cuntinued The City has amended its deferred compensation plan in accordance with changes in the Internal Revenue Code. These new provisions require that all assets and income of the plan be held in trust for the exclusive benefit of participants and their beneficiaries. 15) Risk_ Management The City faces a considerable number of risks of loss, including (a) damage to and loss of property and contents, (b) employee torts, (c) professional liability; i.e., errors and omissions, (d) environmental damage, (e) workers' compensation; i.e., employee injuries, and (f) medical insurance costs of employees. The City is a member of the Alaska Municipal League Joint Insurance Association (JIA), a governmental insurance pool established by the Alaska Municipal League. The JIA provides the City coverage for property, including building and oontents, 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, 2001. The JIA provides loss control services and conducts periodic inspections to ensure safe operations. The City has utilized an established safety committee to review and recommend safety policies and procedures for all departments. The City Council designates a portion of the General Fund balance to meet potential losses related to the JIA basic core coverages and the law enforcement liability pool (LELP). LELP was established by the JIA as a separate insurance pool for law enforcement professional liability, including jail liability. The City also participates in the Alaska Public Utilities Insurance Trust, which provides insurance coverage for employee health benefits. The Plan is a public entity risk pool in which risks are shared among the members. Stop loss insurance limits participants' liability for individual and aggregate claims. i CITY OF SEWARD Notes to General Purposc Financial Statements, continued Risk Manaeement. continued There was no significant reduction in the City's major categories of risk insurance coverage from the prior year, and the amount of settlements for the past three fiscal years did not materially exceed the City's inset- tore coverage. 16) Changes in Contributed Capital A summary of changes in contributed capital for the year ended December 31, 2001 follows: Total Enterprise Funds S =UAIA Internal Service Fund S 522.218 31M 54d_917 A summary of changes in accumulated amortization of contributed capital follows: Balance at Balance at January 1. 200.1 1>AAM QSQ mbar 31.2001 Balance at Balance at January 1. 2001 Dektim December 31, 2001 Enterprise Funds: Electric S 8,105,973 Electric S 24,103,666 123,739 24,227,405 Water and Sewer 11,827,299 25,491 11,852,790 Harbor 9,613,617 1,256,795 10,870,412 SMIC 49,810,682 113,012 49,923,694 Parking Revenue 376.174 57.369 433.543 Total Enterprise Funds S =UAIA Internal Service Fund S 522.218 31M 54d_917 A summary of changes in accumulated amortization of contributed capital follows: Balance at Balance at January 1. 200.1 1>AAM QSQ mbar 31.2001 17) Segment Information for Proprietary Fund Types Enterprise Funds The City maintains five enterprise funds, which provide electric, water and sewer, harbor, Seward Marine Industrial Center and public parking services. Segment information for the year ended December 31, 2001 follows: 36 Enterprise Funds: Electric S 8,105,973 795,314 - 8,901,287 Water and Sewer 5,839,578 299,647 - 6,139,225 Harbor 1,519,709 336,162 - 1,855,871 SMIC 16,253,204 1,113,814 - 17,367,018 Parking Revenue 283,345 121,253 404.598 Total Enterprise Funds S N.QUM aifium internal Service Fund S ,,,,,,—U.w 9.729 1 17) Segment Information for Proprietary Fund Types Enterprise Funds The City maintains five enterprise funds, which provide electric, water and sewer, harbor, Seward Marine Industrial Center and public parking services. Segment information for the year ended December 31, 2001 follows: 36 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 SAAMS under the loan agreement. The bonds do not constitute a general obligation debt or pledge of the full faith and credit of the City and, accordingly the bonds are not reflected in the accompanying financial statements. The Center is a marine research facility, rehabilitation center, and public education and visitor facility located in Seward. The total cost of the Project was approximately $55,000,000. Approximately $37,500,000 of total Project costs was paid from equity contributions from grants from the State of Alaska and from Exxon Valdez oil spill settlement monies. The remaining $17,500,000 of Project costs was paid from bond proceeds. The City owns the Center and the property on which it is located. SAAMS has leased the Center and the property from the City and will operate the Center in accordance with an operating lease between the City and SHAMS. These bonds were paid off in their entirety in 2001. 1 37 CITY OF SEWARD Notes to General Purpose Financial Statements, continued Seement TInformationforProprietaryFund continued Total Water Parking Enterprise El l9 and 5e SMiC Re cmw Ewdi Total operating revenues 6,782,265 1,484,559 1,735,281 390,323 109,603 10,502,031 3,313,444Depreciationexpense1,263,095 377,933 392,887 1,232,620 46,909 Operating income (loss) 496,819 130,069 209,539 (1,212,066) 13,372) 389,011) Operating transfers to) other adsftomfu 363,855) 74,106) 113,906) 342,805 209,062) Net earnings (loss) 28,378 110,293 8,887 (966,697) 10,431) 829,570) Capital contributions 123,734 25,491 1,256,795 113,012 1,519,037 Property, plant and equipment additions 693,770 62,253 4,570,024 117,384 8,500 5,451,931 Property, plant and equipment deletions 20,000 15,693 - 35,693 Working capital surplus (deficiency) 4,009,892 2,286,695 337,888 (44,348) 93,799 6,683,926 Total assets Bonds and other long -term 29,652,565 10,766,664 15,223,375 33,685,711 189,370 89,517,685 liabilities 4,480,000 667,723 3,000,000 1,381,72$ 9,529,451 Fund equity 24,577,447 9,976,083 11,657,030 32,183,913 186,996 78,581,469 1 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 SAAMS under the loan agreement. The bonds do not constitute a general obligation debt or pledge of the full faith and credit of the City and, accordingly the bonds are not reflected in the accompanying financial statements. The Center is a marine research facility, rehabilitation center, and public education and visitor facility located in Seward. The total cost of the Project was approximately $55,000,000. Approximately $37,500,000 of total Project costs was 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 was paid from bond proceeds. The City owns the Center and the property on which it is located. SAAMS has leased the Center and the property from the City and will operate the Center in accordance with an operating lease between the City and SHAMS. These bonds were paid off in their entirety in 2001. 1 37 1 CITY OF SEWARD Notes to General Purpose Financial Statements, continued ' 20) Spring Creek Correctional Center ' In 1985, the City undertook the financing and construction of a 320 4bed, maximum - security correctional facility on behalf of the State of Alaska The facility was financed with , nonrecourse certificates of lease participation and leased to the State under the terms of a long -term lease signed in 1985. The facility is currently being operated by the State. Technically, the City is the owner of the facility, however, under the terms of both the , financing and lease agreements, there is no possibility of the City ever becoming liable for the debt or being obliged to take actual possession of the facility. Consequently, the City , has not included the value of the facility in its general fixed assets. 21) Commitments and Contingencies IAmountsreceivedorreceivablefromgrantoragenciesaresubjecttoauditandadjustmentby grantor agencies, principally the state and federal government. Any disallowed claims, including any amount already collected, could become a liability of the applicable funds. , Various other claims and lawsuits against the city are pending, but are either covered by insurance or are the type which are normal and reasonable in view of the City's operations. City management believes the total amount of the liability, if any, which may arise from such claims and lawsuits beyond that which is covered by insurance would not have a material effect on the City's financial condition or its ability to carry on its activities as ' now conducted. I 38 1 GENERAL FUND The General Fund is established to account for the financial operations of the City of Seward which are not accounted for in any other fund. iRevenues 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. 1 39 Liabilities: CITY OF SEWARD 387,211 Accmts payable 124,955 General Fund Salaries and wages payable 25,948 40,748 1lalance Sheet Accrued annual leavecr 72,402 45,802 December 31. 2001 9,583 3,422 with Comparative Amounts for December 31, 2000 49,769 58,177 Deferred revenue 708,385 599,585 aFund Total liabilities Cash and investments 4,695,333 4.401- 85,786 Receivables: Unnsamved: Taxes: Designated: 34,834 43,288 Personal ply Las allowance for doubttal receivables 39,973 27 092 7,742 25,43 Unrealized gains on investments Not p ley 50,852 7,742 3,783 17,88017- 5,780 Mote vehicle 18,839 10,353 Howl/motel room Subsequent year's expcn& u a 29,523 20,953 Really 4,985,759 254,074 310,429 Sales 5,2972048 1 Net taxes 113.966 36 101,400 84,569 Accormts Less allowance for doubtful receivables 2 ,.7 2,491 651 X078tNetaccounts 9,585 12,376 Property assessments 43,450 13,6$4 State and federal grants 194,104 17-'_0226 Accrued interest 649,7% 647,202 Total receivables Prepaids 78,898 886,8 28,606 7,263 Inventory 2 63,229 212,333 Due from other funds Liabilities and Eund JWancc S 5,694,144 5,271,048 1 39 Liabilities: 425,728 387,211 Accmts payable 124,955 64,225 Salaries and wages payable 25,948 40,748 Accrued annual leavecr 72,402 45,802 Accrued liabilities 9,583 3,422 Funds held in trust 49,769 58,177 Deferred revenue 708,385 599,585 aFund Total liabilities balance: Reserved for inventory and prepaids 85,786 35,869 Unnsamved: Designated: 1,500,000 1,500,000 Working capital 39,973 116,252 Unrealized gains on investments 50,852 50,852 Seward Medical Cent sales tax 384,282 431,138 Insurance 151,877 Subsequent year's expcn& u a 2,772,989 562, 3,332 Undesignated Total fund balance 4,985,759 4,697,463 S 5,694,144 5,2972048 1 1 39 Exhibit F -2 CITY OF SEWARD General Fund Statement of Revenues, Expenditures and Changes in Fund Balance Year Ended December 31, 2001 with Comparative Amounts for Year Ended December 31, 2000 2001 2000 Revenues: Taxes 3,913,556 3,953,139 Licenses and permits 134,396 139,871 Intergovernmental 1,120,299 984,231 Charges for services 2,161,177 2,179,832 Fines and bails 16,378 14,786 Investment income 447,888 438,005 Miscellaneous 2901694 247,461 Total revenues 8,084,388 7,957,325 Expenditures: Current: General government 1,735,231 1,592,475 Public safety 1,984,845 1,970,643 Public works 1,152,948 981,027 Parks and recreation 789,615 711,721 Library 258,832 245,710 Debt service 215,924 217,780 Total expenditures 6,137,395 5,719,356 1 Excess of revenues over expenditures 1,946,993 2,237,969 Other financing sources (uses): Operating transfers from other funds 513,621 179,846 Operating transfers to other funds 1,216,687 1,328,804 Net other financing sources (uses) 703,066 1,148,958 Excess of revenues and other financing sources over expenditures and other uses 1,243,927 1,089,011 Beginning fund balance 4,697,463 3,613,262 Residual equity transfers from other fundsq 4,312 Residual equity transfers to other funds 9( 59,943) 4,810) 1 Ending fund balance 4,98_5^,759 4,6 977,,463 40 Exhibit F•3 CITY OF SEWARD Grnerid Fund Statement of Revenues, Expen&Wm and Changm to Fund Balance , Budget and AMW year Ended December 31, 2001 2000withComparativeAmountsforYearEndedUxember31, 2001 Variancx Favorable tunfivorable] As" Revenues: Taxes: S 642,000 663,747 21,747 694,332 Property 2,274,000 2,165,586 108,414) 2,197,561 Sales Payments in lieu of taxes 865,303 872,749 2,016 7,446 984) 844,583 4,044 penalty and interest 3,000 200000 209,458 9, ,456 212119 HowYmoul room 3,984303 3,913,556 70 74 __3 953,139 Total taxes Licenses and paraits: 40,000 45,460 5,460 53,638 Building permits 1,000 1,860 860 730 Taxi pests 53 Op0 58563 600 5,565 66,783 t DCp1et of Motor Vehicka copuaisaions 710 110 970 Animal control liceam 18,000 26,520 8,520 16,260 Business licenses 1,000 1,281 281 1 COther Toad licese.nd permit+ 11300 134,396 20,796 139,8?1 lntcWvanmental: 103,033 89,376 13,657) 90,570 General ro`"eY0 sharing 70,000 74,647 9,647 73,548 Safe commmities 369,465 367,465 2,000) 363,465 W contras 96,500 96,500 120,500 D*mtch contracts 1,000 1,500 500 2,000 14PS dispatch contract 250,000 351,549 101,549 263,743 Raw fish tax 3 000 18,096 15,0% 15,134 Fisheries landing tax 15,000 19,500 4,500 15,000 Liquor tax 57,800 47,908 91892) 39,310 Parks ad recreation ww" 8,948 8, %2tLibraryWants2,500 2,500 14 Fire dePartOmt 8wU 18000 37,296 19,296 911 Other grants 995 46 1,120,299 125,053 984 1 ToUI intergovernmental Charges for services: 1,033,019 1,485,442 452,423 1,593,670 Administrative 43,732 79,180 14,352) 88,864 Rents and leases 32,000 37,678 5,678 31,701 copying charges 35,000 48,532 13,532 41,444 Work orb 405,750 405,452 298) 395,931 RcUcation 5,800 6,992 1,192 6,064 Library 14,700 97,901 83,201 22 -153 Other 1,620,001 2,161,177 541.176 2^ 1 32 Total dwpm for services X000 16,378 1,378 X86 Fines and bails 175,000 447,888 272,868 4381005 Investment income Miscellaneous: 10,591 28,587 17,996 72,384 Sale of land, equipment and gravel 50,000 61,324 11,324 44,490 Refuse 97,659 171,045 73,386 Legal recoveries 26IOQ 2g 3g 125,387 Ottmcr Totai miscellaneous 184,350 290,694 106,344 247,461 7,087,500 8,094 88 996,888 7,957,325 ToW 41 42 1 zxnrolr r -j, eynunucu CITY OF SEWARD Gea val Fund Statement of Reverntes, Expenditures and Changes in Fund Balance - Budget and Actual, continued 2001 QQQ Variance Favorable Budget AcUW Unfavorable) Actual Expenditures: General government: Mayor and council: Sees S 26,844 22,522 4,322 22,565 Employee benefits 1,764 3,249 1,485) 2,537 Audit 37,600 37,600 37,600 Legal 125,000 115,860 9,140 95,759 Supplies and maintenance 21,800 23,043 1,243) 11,748 Legislative representation 128,000 120,827 7,173 121,699 General and administrative 67,000 58,826 8.174 60,000 Total mayor and council 408,008 381,427 2.6 351,908 t City manager. Salaries 156,572 178,798 22,226) 150,053 Employee benefits 56,966 58,957 1,991) 51,705 Purchased services 6,964 37,604 30,640) 5,7% Supplies and maintenance 4,300 5,983 1,683) 7,327 General and administrative 30,540 31,776 x}.236] 37,045 Total city manager 2552342 313,118 5717 251,926 City clerk: Salaries 102,673 89,363 13,310 88,838 Employee benefits 35,106 31,539 3,567 29,670 Purchased services 2,800 1,994 806 2,181 Supplies and maintenance 320 320) 120 General and administrative 7 9_00 5,024 2.876 5,691 Total city clerk 148,479 128,240 20,239 126,500 Finance: Salaries 308,540 252,858 55,682 292,702 Employee benefits 131,662 109,893 21,769 117,845 Purchased services 21,500 17,247 4,253 20,774 Supplies and maintenance 53,600 54,346 746) 33,341 General and administrative 33,400 21,887 11,513 30,378 Capital outlay 11,500 6,379 5.121 6,001 Total finance 560,202 4621610 97,592 501,041 42 1 CITY OF SEWARD General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual, continued 2001 1 Expenditures, continued: General government, continued: Community development: Salaries Employee benefits Purchased services Supplies and maintenance General and administrative Total community development General services: Salaries Employee benefits purchased services Supplies and maintenance General and administrative Capital outlay Total general services Contributions to civic organizations: Providence Seward Medical Center Wesley Rehabilitation and Care Center Senior Citizens Museum Seaview Community Services Chamber of Commerce Miscellaneous Total contributions to civic organizations Total general government Public safety: Police: Salaries Employee benefits Purchased services Supplies and maintenance General and administrative Total police Exhibit F -3. continued 91 Variance Favorable Budget Actual A=d S 61,261 58,793 2,468 57,095 40,932 38,224 2,708 37,927 32,794 14,429 18,365 29,550 10,500 10,561 61) 2,613 5,600 2,954 2,646 5152 151,087 124,961 26,126 132,337 48,215 39,177 18,455 12,165 60,600 36,908 21,100 21,492 94,250 67,915 3,000 16,885 245,620 193,542 10,038 6,290 70,502 23,692 14,320 392) 43,713 26,335 1,748 13.8851 2,865 52,078 133148 9,190 9,190 - 9,258 20,920 20,920 - 21,071 1,800 11800 - 1,000 1,000 1,000 - 1,000 7,923 7,923 7,343 90,000 901000 35,000 4 I7- 31 20,943 1833 130,833 95j615 43 1,899 571 735231 164,,340 1592 -475 669,044 626,179 42,865 627,241 280,442 258,531 21,911 260,072 79,320 65,368 13,952 62,528 39,100 28,589 10,511 45,063 28,921 24,744 4 I7- 31 1,096,827 1,003,411 93,416 1L026 ,466 CITY OF SEWARD General Fund Statement of Revenues, Expenditures acrd Changes its Fund Balance - Budget and Actual, continued Expenditures, continued: Public safety, continued: ail: 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 Capital outlay Total fire Volunteer training: Employee benefits Purchased services Supplies and maintenance General and administrative Capital outlay Total volunteer training Emergency preparedness: Purchased services Supplies and maintenance General and administrative Capital outlay Total emergency preparedness Exhibit - cot u 2001 Variance Favorable Bu actual (Unfavorable} S 221,064 209,151 11,913 203,145 100,605 93,670 6,935 90,409 19,900 16,711 3,189 17,950 11,600 7,997 3,603 8,604 81,365 75,846 5.519 69,978 434,534 403,375 X31 _159 390,0086 100 - 56,200 57,408 56,300 _ 57,408 110,129 99,616 45,219 40,295 128,923 125,191 28,500 22,200 13,900 9,885 8.000 8,016 44 334,669 305,203 100 6,181 509 1,208) 44,745 2,249 178 1108 53,862 10,512 105,096 4,923 41,508 3,732 130,060 6,300 22,454 4,015 12,908 10,800 11,909 29,466 312,026 5,300 5,300 3,900 3,895 5 3,654 10,800 11,909 1,109) 9,227 23,630 29,326 5,696) 17,020 72000 7 0 0 50,630 45,130 5,500 29,901 18 4,700 6,070 (1,370) 1,715 4,300 1,505 2,795 2,944 2,500 2.59Q - 11,500 7,575 3,925 4,677 t u I CITY OF SEWARD general Fund Statement of Revenues, Expenditure: and Changes in Fund Balance - Budget and Actual, continued 1 68,335 2,493) Expenditures, continued: 25,159 public safety, continued: Engineer and utility manager. 31,223 Salaries 8,295 Employee benefits 3,500 Purchased services Supplies and maintenance 5,400 General and administrative 1,418 Capital outlay Total engineer and utility manager Building inspector: Salaries 134,124 Employee benefits 7 ?090 Purchased services Supplies and maintenance 18,954 General and administrative 22,679 Total building inspector Total public safety 4,810 Public works: Roads and streets: 5,793 Salaries 1,527 Employee benefits 1,028 Purchased services 4,687 Supplies and maintenance General and administrative Capital outlay 2,131 35709 Total roads and streets 39762 City shop: 1,984,$45 Salaries 1,970,643_ Employee benefits Purchased services Supplies and maintenance General and administrative- Capital outlay Total city shop 2001 Exhibit F -3. MUtinucd T;99 Variance Favorable Budget Actuld (Unfavorable) AMW 65,842 68,335 2,493) 68,248 25,159 27,406 2,247) 27,842 31,223 22,928 8,295 10,224 3,500 4,383 883) 2,767 5,400 3,982 1,418 4,782 3,000 2,950 3,000 134,124 127,034 7 ?090 1138 3 165,634 26,538 18,954 7,584 22,679 7,855 6,152 1,703 4,810 6,200 6,945 745) 5,793 1,600 1,527 73 1,028 11,650 4,687 9,519 5,462 53,843 2,131 35709 18,134 39762 2172,427 y 1,984,$45 187,592 1,970,643_ 186,421 178,753 7,668 219,667 88,967 84,261 4,706 84,276 224,177 220,704 3,473 131,637 174,100 146,345 27,755 167,357 28,686 24,680 4,006 14,537 2,950 2,950 702,351 657,693 44,658 617,474 165,634 160,053 5,581 85,381 88,082 90,485 2,403) 58,152 39,023 40,914 1,891) 37,8266 35,500 34,614 886 27,170 8,500 3,813 4,687 1,311 2,500 3,080 80 339,239 332,959 6,280 209,840 45 CITY OF SEWARD General Fund Statement of Revenues, Expendittm 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 2001 Variance Favorable B2#W AOW WAY20bW 1 i onMu 47,668 48,459 791) 46,550 22,473 19,862 2,611 63,042 69,584 73,916 4,332) 3,689 22,850 19,634 3,216 25,506 426 450 1_6_3 025 425 ----Z 162 6?g I 53,713 1L204,615 1,152 948 511667 981,0,27 386,468 360,799 140,031 103,973 166,808 165,156 75,663 105,335 44,150 50,663 23'5+ 5 3,689 813,120 789,615 25,669 351,464 36,058 116,597 1,652 131,001 29,672) 65,356 6,513) 47,303 23'5+ 5 71 1,721 125,462 117,925 7,537 118,220 60,054 56,408 3,646 51,869 25,500 27,266 1,766) 29,892 36,846 34,722 2,124 32,297 17,550 15,194 2,356 10,932 2500 000 270,412 7,317 258,832 M 11,580 2410 137,696 125,005 90x919, 12,691 119,123 lr03,462 241158 215,924 25234 98z657 217,780 6,60: 303 6,137,395 463,908 5,719,356 M 486,197 1,946,993 1,460,796 2,237,969 L 1 LI CITY OF SEWARD General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual, continued Other financing sources (uses): Operating transfers from other funds Operating transfers to other funds Net other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other uses Beginning fund balance Residual equity transfers from other funds Residual equity transfers to other funds Ending fund balance i Exhibit 2001 M Variance Favorable Bud ASWI (Unfavorable) A91W S 529,345 513,621 15,724) 179,846 1,234103 4 1,216 687 17.347 1,328 704,68 9) 703 066 1,623 1,149,959 218,492) 1,243,927 1,462,419 1,089,011 4,697,463 4,697,463 3,613,262 4,312 4,312 949,094) 959,943 101859) 4,91 3,529,887 4,985,759 1,455 872 4,697,463 47 1 THIS PAGE LEFT BLANK INTENTIONALLY , 48 I SPECIAL REVEPIUE FUNDS 1 The Special Revenue Farads 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 n J 1 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for expenditures associated with dedicated or restricted revenue sources. High School Greenhouse -- The purpose of this project is to account for the costs of light fixtures, renovating the Seward High School Gmenhouse, and installing new exhaust fans and thermostats, a new watering system, benches and non -slip flooring. The greenhouse will be used to grow seedlings as part of an education program to teach students about sustainable forestry- 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. 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 well as a radar certification 1 equipment and video surveillance systems, as providing course. Seward Comprehensive Plan — To account for the costs of updating the Seward Comprehensive Plan and preparing and producing the Comprehensive Plan document. Historical Records Preservation — To account for the costs of preserving the City's historical records. Funding is provided by a State grant and the City. 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- funded computer network, including development of a City web page to improve citizen access to public information. 1 49 Exhibit 0-1 CITY OF SEWARD Special Revenue Funds Combining Balance Sheet December 31, 2001 with Comparative Totals for December 31, 2000 Liabilities and Fund Balances Liabilities: Accounts Payable Deferred revenue Due to other funds Total liabilities Fund balances - unreserved and undesignated 995 3,900 5,255 Other 5,349 6,109 Parks and Public General Total 195,620 Assets Recreation S*y Government 20111 2000 Cash and investments S 26,508 44,225 70,733 83,880 Receivables: S 2 6,508 19, E 9 State and federal grants 199,520 199,520 11,849 Other 26,875 S 26,508 199,520 44,225 270,253 122,604 Liabilities and Fund Balances Liabilities: Accounts Payable Deferred revenue Due to other funds Total liabilities Fund balances - unreserved and undesignated 995 3,900 5,255 10,150 5,349 6,109 16,970 23,079 31,185 195,620 195,620 38,724 7,104 199,520 22,225 228,849 75,258 19,404 22,000 41,404 47,346 S 2 6,508 19, E 9 270,253 122;.= 50 Exhibit G-2 CTTY OF SEWARD Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31, 2001 with Comparative Totals for Year Ended December 31, 2000 Other Parks and Public General Totals Recreation Sdety Government, 2001 2000 141,370 Revenues: 138,122 Federal grants State grants 49,591 Miscellaneous 8,399 Total revenues Expenditures: Salaries and employee benefits Contracted services Supplies Pass - through payments other services and charges Total expenditures 2,426 141,370 143,796 138,122 47,123 2,468 49,591 62,910 8,399 5,000 5,2?5 ---!-81654 Residual equity transfers to other funds 3152006 10,825 193,493 7,723 212.041 516,038 2,865 184 3,049 107,078 193,211 5,255 198,466 228,802 4,934 282 2,434 7,650 28,123 4,182 324 4,506 154,222 l 1,981 193 493 8197 213,671 518,225 Excess of revenues over (under) 474) (1,630) (2,187) expenditures other financing sources - operating transfers - 23,828 from other funds --- - Excess of revenues and other financing sources over (under) expenditures 1,156) - (474) 1,630) 21,641 Beginning fund balances 20,560 2,250 24,536 47,346 25,705 Residual equity transfers to other funds 2,250 2,062 4,312 - Ending fund balances 19,404 - 22,000 41404 6 1 51 Exhibit G -3 CITY OF SEWARD Parks and Recreation Special Revenue Funds Combining Balance Sheet December 31, 2001 High Two School Litter Lakes Asset ree uc1usg ContrQl Park TT Cash and investments $ 1,574 5,530 ,4 2 6• 08 Liabilities and Fund Balances Liabilities: 995 Accounts payable 995 Deferred revenue 1,574 4,535 - Total liabilities 1,574 5,530 - 7,104 Fund balances - unreserved and undesignated - - 19,404 _ 19,404 X1, 574 5 0 19,404 52 i CM OF SEWARD Parks and Recreation Special Revenue Funds Combining, Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31, 2001 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 53 Exhibit G4 High Two School Litter Lakes Greenhouse Control Park Totals 2,426 2,426 8,399 8,399 426 8.399 10 82 2,865 2,865 4,934 4,934 2,426 600 1,1156 4,118„2 2,426 8,399 1,156 11,981 1,156) (1,156) 20,560 20,560 19,404 19,404 CITY OF SEWARD Public Safety Special Revenue Funds Balance Sheet December 31, 2001 Assets Receivables - State and federal grants Liabilities: Accounts payable Due to other funds Total liabilities Fund balance Liabilities and Fund Balance 54 Exhibit G -5 Avalance 2000 S 1,520 3,900 195,620 199,520 S 199,520 t i CITY OF SEWARD Public Safety Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31, 2001 Revenues: Federal grants State grants Miscellaneous Total revenues Expenditures: Contracted services Supplies Total expenditures Excess of revenues over expenditures Beginning fund balances Residual equity transfer to other fund Ending fund balances 55 Exhibit G-6 High Risk Avalanche Traffic 2000 Enforcement Totals 141,370 141,370 47,123 47,123 57000 51000 193,493 193,493 193,211 - 193,211 282 - 282 193,493 - 193,493 2,250 2,250 2,250 (2,250} Exhibit G -7 CTTY OF SEWARD Other General Goverment Special Revenue Funds Combining Balance Sheet December 31, 2001 Seward Compre- Computer hensive Network/ Assets Plan We Page Totals Cash and investments S 22,225 22,000 X25 Liabilities and Fod Balances Liabilities: Accounts payable 5,255 5,255 Deferred revenue 16,970 16,970 Total liabilities 22,225 22,225 1 Fund balances - unreserved and undesignated 22,000 22,000 S 22,225 22,009 44,225 1 1 S6 CITY OF SEWARD Other General Government Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31, 2001 Excess of revenues over (under) expenditures Beginning fund balances Residual equity transfer to other fund Ending fund balances 1 Exhibit -8 Seward Compre- Historical Seward Computer hensive Records Community Network/ Plan Preservation Cemetea Web P Totals 2,468 - - 2,4668 5,255 - - 5255 5_,255 2,468 - - 71723 184 - - 184 5,255 - - - 5,255 29434 - - 2,434 324 - - 324 5,255 2,942 - - _8,197 57 474) 474 474) 2,062 22,000 24,536 2,062 - 2,062 22,000 22,000 Revenues: State grants Miscellaneous Total revenues Expenditures: Salaries and employee benefits Contracted services Supplies Other services and charges Total expenditures Excess of revenues over (under) expenditures Beginning fund balances Residual equity transfer to other fund Ending fund balances 1 Exhibit -8 Seward Compre- Historical Seward Computer hensive Records Community Network/ Plan Preservation Cemetea Web P Totals 2,468 - - 2,4668 5,255 - - 5255 5_,255 2,468 - - 71723 184 - - 184 5,255 - - - 5,255 29434 - - 2,434 324 - - 324 5,255 2,942 - - _8,197 57 474) 474 474) 2,062 22,000 24,536 2,062 - 2,062 22,000 22,000 1 1 THIS PAGE INTENTIONALLY LEFT BLANK 1 u I 58 1 DEBT SERVICE FUND The Debt Service Fund is used to account for the accumulation of resources for payment of the $7,540,000 ingeneral obligation bonds issued for construction of a new medical center, and the retirement of the liability to the State of Alaska Public Employees Retirement System resulting from the dissolution of the Seward General Hospital Enterprise Fund. 1 11 Exhibit H -I CITY OF SEWARD Debt Service Fund Balance Sheet December 31, 200I with Comparative Amounts for December 31, 2000 Assets 2001 20 Cash and investments $ 685Aa 564-909 Fund B Mee Fund balance - reserved for debt service 59 a 685"422 3ra= Exhibit H -2 CITY OF SEWARD Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balance Year Ended December 31, 2001 with Comparative Amounts for Year Ended December 31, 2000 Revenues - investment income Expenditures: Interest payments Principal payments Total expenditures Excess of revenues over (under) expenditures Other financing sources - operating transfers from other funds Excess of revenues and other financing sources over expenditures Beginning fund balance Ending fund balance 60 2001 21,914 25,3 52 377,055 388,217 265,000 235,000 642,055 623,217 620,141) (597,865) 740,654 732,945 120,513 135,060 564,909 429,829 685,422 564,90 i CAPTrnI, PROJECT FUNDS 1 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. C Project Capital Proect 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. C ICAPITAL PROJECT FUNDS Capital Project Funds are established to account for the resources expended to acquire assets of a relatively permanent nature. Gateway Subdivision — To account for the cost of acquiring lots and developing a park. A State grant and the City provide monies. Bike Path Continuation — To account for the construction of a high school bike path extension. Monies were provided through a State matching grant. Ballfield — To account for the cost of a new community softball field called Citizens Field." The City provides funding. Campground ADA and Waterfront Improvements — To account for the costs of providing wheelchair accessible camping and parking sites at Waterfront Paris, as well as to construct a recreational vehicle sewer dump station. City Playgrounds — To account for the costs of upgrading, repairing and constructing. tot lots and playgrounds in the City. Hoben Park -- To account for improvements to Hoben Park, located adjacent to the Alaska SeaLife Center, including removal and replacement of fencing, monuments and trees, and installation of a sidewalk. 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. Fourth and Adams Park — To account for the costs of building a town square park to e include a public restroom facility, bus pullout, covered waiting area, and green space, servicing to revitalize the downtown area. 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. Hospital Construction -- To account for the cost of constructing the new hospital. Funding is provided primarily by the 1996 hospital bond issue for $7.5 million. 1 61 CAPITAL PROJECT FUNDS, oontinued 1 Fuel Tank — To account for the costs of removing an underground storage tank used ' by city hall and the fire ball, and replacing that fuel tank above ground The project also includes building a housing structim to secure the teak. , Fin Hall Roof Repair — To account for the cost of repairing and/or replacing the roof at the fire hall. Library Project — To account for the cost of replacing windows and exterior siding necessitated by water damage. ' Street improvements -- to account for the costs of reconditioning portions of Ballaine Boulevard, Bear Drive, and Maratim Drive. ' City Hall Facilities and Equipment — To account for the cats of replacing aging lighting ballasts and fixtures throughout the City Hall building, as well as replacing , some areas ofworn carpet. 62 THIS PAGE LEFT BLANK INTENTIONALLY Exhibit I -1 CITY OF SEWARD Capital Project Funds Combining Balance Sheet December 31, 2001 with Comparative Totals for December 31, 2000 Liabilities and Fund Balances Liabilities: Accounts payable - - 70,974 70,974 118,642 Deferred revenue - - 14,000 14,000 - Due to other funds - _ 67,b09 - 67,609 173,609 Total liabilities - 67,609 84,974 152,583 292,251 Fund balances - unreserved - designated for capital improvements 53,363 - 380,912 434275 642,131 S 53,363 67,609 465,886 586,85$ 934,382 64 t Other parks and Public General Totals Assets Recim do fety Government 2001 2000 Cash and investments S 53,363 465,886 519,249 654,269 Receivables: Federal and State grants 66,609 66,609 235,548 Other 1,000 X000 56? S 53,363 67,609 465,886 586,858 934,382 Liabilities and Fund Balances Liabilities: Accounts payable - - 70,974 70,974 118,642 Deferred revenue - - 14,000 14,000 - Due to other funds - _ 67,b09 - 67,609 173,609 Total liabilities - 67,609 84,974 152,583 292,251 Fund balances - unreserved - designated for capital improvements 53,363 - 380,912 434275 642,131 S 53,363 67,609 465,886 586,85$ 934,382 64 t C CITY OF SEWARD Cipital Project Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended Docenber 31, 2001 with Comparative Totals for Year Ended December 31, 2000 Other Parks and Public General fig Saferi Government Exhibit 1-2 Totals M1 2M S - 647,196 Revenues: Federal grants 73,990Stategrants 79,611 Investment income other Total 16,515 revenues 20,732 Expenditures: Salaries and employee benefits 30,000 Contracted services 111 Equipment 52,025 Land 537,032 Supplies 119 Pass - through payments Other services and charges 28,740 Total expenditures Excess of revenues over 857,278 under) expenditures Other financing sources (uses): operating transfers from other funds 124,302 Operating transfers to other funds Net other financing sources (uses) Excess of revenues and other 1,627 financing sources over (under) expenditures and other uses 53,247 Beginning fund balances Residual equity transfers from other funds Residual equity transfers to other funds 12 17,407 Ending fund balances Other Parks and Public General fig Saferi Government Exhibit 1-2 Totals M1 2M S - 647,196 647,196 303,606 111 73,990 5,510 79,611 178,497 16,515 16,515 20,732 30,000 30,000 34,197 111 721,186 _ 52,025 773,322 537,032 119 13,098 1,845 15,062 28,740 1,874 701,593 153,811 857,278 662,411 6,469 254,281 260,750 124,302 155,089 1,627 17 6,006 7,650 53,247 99,274 5,352 12 17,407 T 22,771 531694 8,972 721,189 433,350 1,163,511 1,176,757 8,861) (3) (381,325) (390,189) (639,725) 246,474 246,474 553,640 75 000 75 000 (189,90 171,474 171,474 363,738 8,861) 3) (209,851) 218,715) (275,987) 51,365 3 590,763 642,131 918,118 10,859 42,889 53,748 - 42,889 42,889 - S 53,363 380,912 434,275 642,131 65 CITY OF SEWARD Parks and Recreation Capital Project Funds Combining Balance Sheet December 31, 2001 Assets Cash and investments Fund Balances Fund balances - unreserved - designated for capital improvements Exhibit I_3 Campground ADA and Bike Path Waterfront Hoben Continuation lm rovements Park Totals X2, 4118 951 49,9% 53,363 8 951 49 53 363 i i i Eabibit Ci'I'Y OF SEWARD Parks and Recreation Capital Project Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) Year Ended December 31, 2001 Campground ADA and City Gateway Bike Path Waterfront Play- Hoban SgWivision o t' fi IMRrovernents grounds Ellk Tak Revenues - State grants $ Expenditures: Salaries and employee benefits 119 - - 119 Contracted services 1,874 - 1,627 1,874 1,627 Supplies Other services and charges 12 5,340 5,352 Total expenditures 131 1,974 - 6,967 X972 Excess of revenues over (under) expenditures 20) {1,874} 6,967) 8,861) Beginning fund balances (deficit) 10,859) 2,438 1,874 951 6,967 49,994 51,365 fromResidualequitytransfer 1 59 her ndotfu 1 U - _ Ending fund balances S 2,418 _ = 951 49,994 53,363 1 t t 67 Receivables: Federal and State grants Other CITY OF SEWARD Public Safety Capital Project Funds Balance Sheet December 31, 2001 Assets Liabilities and Fund Balances Liabilities - due to other funds Fund balance 68 Exhibit I -5 Flood Mitigation 66,609 1,000 67,609 67,609 S 67,609 CITY OF SEWARD Public Safety Capital Project Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31, 2001 Revenues: Federal grants State grants Total revenues Expenditures: Salaries and employee benefits Contracted services Equipment Supplies Other services and charges Total expenditures Excess of revenues over (under) expenditures Beginning fund balances Ending fund balances i 69 Exhibit I 911 Flood Equipment Mitieation Reylacement Totals 647,196 - 647,196 73,975 15 731990 721,171 15 721,186 13,098 701,593 6,469 11 721,171 MEMNON 13,098 701,593 6,469 17 17 1 12 18 721,189 3) (3) 3 3 CITY OF SEWARD Other General Government Capital Project Funds Combining Balance Sheet Devember 31, 2001 1 City Hall Street Facilities Fourth and Capital Street and Hospital Library Improve - and A Adams Park Acguigition S+dewalks Constructive Ewiga meats Eguipm IOWA Ca3h and investment S 53,279 230,021 3,312 99,933 61,986 X510 13,844 465,886 Liabilities: Accounts payable 2,858 68,116 70,974 Deferred revenue 14,000 1 14,000 Total liabilities 14,000 2,858 68,116 84,974 Fund balances (deficit) - unreserved - designated for capital kgxovanmts 39,278 230,021 3,312 _ 97,075 3,128) 510 13,844 380,912_ 53 278 230,021 3,312 99,933 64,988 510 13,844 465,886 t 1 70 i i i CITY OF SEWARD Odwr GemW Oovwnmmt Capital Pwjea Fads Combumg Stma na of Rerasns, Expeodiara and Cbm" in Fund babism (Deficit) Yew Ended Dezember 31.2001 71 City Hd1 Feattb td CapMtl Seats end Hospip l Fi" LAMA 1mPPow- mad iJ mp1 i 3i2a Sldnwh Comstwu EMLL t blig b 1m mm Imii2 21L Tslw Revem ss: SUN Sim" s S 110 3.510 IF,V incomt 6,599 7,616 16,315 Odiw 30 flop 301000 Total myeimmimi 32,599 1,616 51310 52,025 Salvias eod be A 1,545 1.545 Camected eavu= 72,904 177 279 62.116 333 6.000 133.911 25.504 221,777 254,281 SUPP 3,917 5 1,611 466 6,006 Olww earvicm and fps 9126 4117 203 47 6,311 71 92? 33 600 X40? Taal ag7mdinres 92,047 25,991 230 230,674 Sl3 365 6,600 433 330 Excea of mrrttw ovw(usdw)expmdit- 92,047) 12.902 2,230) 223,058) 313) 74,927) 361) 1.090) 351,325) 4tbw fineoeins wwcea (zeta): 0"Mua2 tranof ws fiom O&W fw* 13025 76,140 37,905 404 246,474 oparma5 narfen m od w fitds 75 000 7000 Net 06W fir,aocift - (ma) 131,325 1,840 37,903 404 171,474 Excew 9hevomm and od w emmoci It so., - i ovw (MAW) jye midathw um 39,2T8 14,742 2.230) 223,032) 513) 37,022) NA) 686) 209,151) Bogiorift findpdm= 206.278 5,342 320,133 2,995 34,407 575 14,530 590,763 Rwdusl equity &msfws fiom othcr bands 9,995 33.2% 4209 Raeidwl equity &mifwe to odtw funds J5,995 (3 3194 4T ( 2.999) Etdial fund balwrrss (deficit) S 39.272 230,021_ 3,J 12 97,075 3 125 S 10 13,#44 330912 71 L THIS PAGE LEFT BLANK INTENTIONALLY 72 ENTERPRisE FUNDS The Enterprise Funds are established to account for the financing of self- supporting activities of governmental units which reader services to the general public on a user- charge basis. Enterprise Foods are maintained on the accrual basis of accounting. l L'. J IENTERPRISE 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 (SNEC) — 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. 1 1 73 Current assets: Cash ow investments CITY OF SEWARD Eamprise Punds Combining 1 dune Shot December 31, 2001 withComparWve Totals for Dwen ber 31.2000 WNW Totals , ARM Ekg* and Sewer k1joM am EKWAll nu &M 4,169,435 23, 06.226 756,460 356,556 96,173 7,694,850 10,634,604 ' Receivables: Acwamts 676,053 118,476 222,259 44,324 1,061,112 968,506 Assessments 5,497 7,069 4,286 - 16,BS2 Crr'mts 4,484 Other 10,340 10,340 29,991 Less allowance for doubtPolroccivabla X30 ,422) 4,581) 28704 - 63,707) 55,161) ' Net receivables 661,468 120,964 T 197,841 44x324 I,024,597 946,920 8,290,456 Cash held by fiscal agent 153 000 Prepaid eapmaes 10,716 10,716 bNentory 519,009 20,126 19,006,863 539,135 5 17,294 Total amsnt assets 5,349,912 2,458,032 954,301 400,890 96,173 9,259,299 12,253_ y23_ Restricted assets - crib and invemuents radioed for bond ratbumut Asseasrnawts receivable 307,205 - 20,518 555,723 555,723 61,140 120,002 53,399 - 234,541 294,968 ' may, pjaat aad cquipmmt: Land and land improvemmts 230,951 113,518 3,377,979 12,044,821 500,041 16,267,310 15,754,269 Buildags 281,474 3,701,087 396,187 271,649 4,650,397 4,650,397 Inipro mients other than buildings 34,920,918 9,874,566 4,560,597 38,938,681 88,294,762 88,273,746 Equipment 4,830,169 1,731,450 8119 908,788 8,500_ 8,290,456 7901,410 Property, plant and equipment m service 40,263,512 15,420,621 9,146,312 52,163,939 508,541 117,502,925 116,579,11M Less accumWated depredation 18,796,879) 7 65 193 2S ,998, 19,006,863 415,3U C48 482,973) 45,125,32S) Net property, plant and equipment in service 21,466,633 8,155,428 6,147,618 33,157,076 93,197 69,019,952 71,454,497 Construction in pmgmu 2,447,371 33,202 7,819,539 113,012 10,413,124 51858,192 Total property, plant and equipment 23 914,004 8,189,630 13,967,157 33,270,089 93,197 79,433076 77,312,699 Defaced charges - unamoamd debt issuance coats 20,304 14,743 35,047 43,119 S 29,652,565 107664 15_223,375 33,685,711 189,370 999517,695 90 460 2 1 74 1 75 F chihit J-1. contim od CITY OF SEWARD Enterprise Funds Combining Balance Shea, cmtmwd wow Totals E1toLig ma. Lwa am Ptldc U 2m 2444 Liabilities: Cwreat liabilities: Accounts payable S 455,197 57,160 37,362 107,201 2,360 659,280 4$4,474 Current patron. Bp, payablepy, 90,000 152,348 892,348 8'99 ,991 Notes pay" 48,479 48,479 46,118 Capita kale obligations 75,000 75,000 70,000 Rehm" incentive PmVm payer 9,657 10,661 20318 20,319 t Custame deposits 159,587 159,587 143,319 Accrued annual leave 38,645 18,177 40,162 97,004 103,421 Accrued interest 34,339 2,695 39,629 12,217 88,880 72833 Odor accrued liabilities 2,252 34,431 24,542 246 14 61,485 64,783 738 374,037 98,216 472,991 465,554 urTotalcrent liabilities 134„0,,020 171,337 X413 44,5,,228 2,374 2575,372- 2,870,821 Deferred revwue - ML*a Railroad Corporatsan lo reivabonw k 39,932 39,932 73,622 Long-term excluding current portion: 3,830,000 1,910,000 889,380 7,629,380 8,521,728 Bonds piyable L.435 rnumw d . wwjm on refunding gq 902) 97,$10) 192,712} 234,875) Notes payable 619,244 619244 667,726 Capital least obligations 265,000 265.000 340,000 Retirement incentive program payable 20,318 Total long -term debt 3! 73098 61944 2___ x_911000 1,056,574 8,320,912 9,314,897 J , Total liabilities 5,075,118 790,581 3,566,343 I,501,798 y4 10,936.2-16 12,259340 Fund equity: Contnbutcdcapital 24,227,405 11,852,790 10,870,412 49,923,694 433,543 97,307,841 95.731,438 LAM ascunrulated amOM2600 8,901,287) 10,139.225) 1 855 871 17,367,01 8 404,598) 34,667, 999 31001 804 Net coumbuted capital 15,326,118 5,713,565 9,014,541 32,556,676 28,945 62,639,915 63,729,629 Retained earnings (deficit) - unreserved 9,251,329 4,262,518 2? 489 372,763 I58,OS1 151,624 14,471,252 Total find equity 24,577,447 9,976083 11,657 030 32,183,91.3 186,996 78,581,469 78 00 881 S 29,652,563 10,766,664 15 ,223,375 33,685,711 189,370 89,517,685 90,46OX1 1 75 CITY OF SEWARD Enterprise Funds Combining Statement of Revenues, 301 Expenses and Changes in Retained Earnings (Deficit) Year Ended Deonnber 31, 2001 15,980 with Comparative Totals for Year Ended Dcownber 31, 2000 44270,4519 537, Operating revenues 1 wing etpenses Earnuigs from operations. before depreciation Depreciation Earnings (loss) from operatrons Non-opc ating revenues (expenses): Gain on disposal of property and equipment Invest income Interest expense Other revenues Net non - operating revenues (atper=) 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 oorrr'awm to contributed capital and accumulated depreciation Amortization of contributed capital Increase in retained earnings Beginning retained earnings (deficit) Residual equity transfers to outer funds Ending retained earnings (deficit) F wow Totals Ekctn and H SI diC Parking =1 2M S 6,782,265 1,484,559 1,735,281 390,323 109,603 10,502,031 10,011,875 5.1022251 976,557 1,132,855 369,769 76,066 7,577,598 7,311,040 1,759,914 508,002 602,426 20,554 33,537 2,924,433 2,700,835 1,263,095 377,933 392,897 1,232,620 461909 3,313,444 3,2866,142 496,819 130,069 209,539 (1,212,066) (13,372) (389,011) (585,307) 111,593 795,314 299,647 336162 1,113,815 _45,784 2,590,722 2,578,795 823,692 409,940 345,049 147,119 35,353 1,761,152 2,197,425 8,683,417 3,852,578 2,332,440 (519,881) 122,698 14,471,252 12,273,827 255,78 0) - (35,000) 2( 90,780) - S 9,251,329 4,2 62,518 2,642,489 3 72,763 158,051 15,941,624 14,471,252 1 77 301 111,327 63,581 76,615 15,980 21941 44270,4519537, 259,821) 17,542) 163,361) 113,416) 554,140) 502,821) 43,908 8,291 52,199 28,898 104,5 54,330 96,746 97,436) 2,941 231.49 63,897 392,233 184,399 122,793 1,309,502) 10,431) 620,508) 521,410) 3,130 9.734 9,651 358,884 381,399 285,133 3_( 56,985} 8( 3,840) l( 23,557) 16,079 51 256,686) 3653,855} 7( 4,106) 1( 13,9Db) 342,805 2{ 09,062) 28,447 28,378 110,293 8,887 966,697) 10,431) 829,570) 492,963) 111,593 795,314 299,647 336162 1,113,815 _45,784 2,590,722 2,578,795 823,692 409,940 345,049 147,119 35,353 1,761,152 2,197,425 8,683,417 3,852,578 2,332,440 (519,881) 122,698 14,471,252 12,273,827 255,78 0) - (35,000) 2( 90,780) - S 9,251,329 4,2 62,518 2,642,489 3 72,763 158,051 15,941,624 14,471,252 1 77 CITY OF SEWARD Entetprisc Funds Combining Stdcment of Cash Flaws Year faded December 31, 2001 with Compancive Totals for Year Ended December 31, 2000 Cash flows from Operating activities: Earrings (loss) fran operat'°"s Adjustnterr<s to mmk ile earnings (loss) from operations to net cash flows from Operating activities: Depreciation Cdw non.operating revenues Increase (decrease) in allowance for dwabtfW mceivables increase) decrease in assets: Roceivabks Prepaid expauscs lnvattary Increase (decrease) in liabilities: Accounts payable Customer deposits Accrued annul leave Other accrued liabilities Die to Other fords Deferred revenue Ratircnmt iwmtiva program payable Net cash flows from operating activities Cash flows from non- capital financing activities: Operating transfers from other funds Operating transfers to other funds Opm*ing grants received Net cash flows fiom non- capital financing activities Water Fkxtdc and Hfftff MQ rEking S 496,819 130,069 209,539 (1,212,066) (13,372) Totals ' M M 389,011) (585,307) ' 1,263,095 377,933 392,887 1,232,620 46,909 3,313,444 3,28042 43,908 8,291 52,199 3,509 1,458 21 7,067 046 8,721) 41,422) 15,894) 9.156) 10,332) 76,804) 21,310 10,716) 10,716) 28,467) 6,631 21,836) 37,319 139,313) 9,940 301,217) 103,126 2,270 316 7( 6' 5 16,268 168) 9,707) 3,816 526) 6,417) 6,940) 16.556) 7,394) 11,421) 1,592) 28) 36-991) 288) 34.431 118,212) 91,216 7.435 33,536) 9658 10,661) 20319 3,662} 1 5483 527,470 158,300 202,972 3_ 5,779 2,510,604 3-410.355 3,130 9,734 9,651 358,884 381.399 285,133 366,985) 83.640) 123,557) 16,079) 590,461) 363,855) 74,1 113906 342,805 209, 53,247 I I 1 Exhibit ] -3. continued CITY OF SEWARD 1 Entnpriae Funds Combining Statement of Cub Flows, continued 1 W Totals 1 Gash lows from capital and rebated financing activities' 3,008,366 Procoecl+t from issuance of long-teem debt Priwc on long-term debt 760,000) 46,121) 2091995) 1,016,116) 941,512) payment; Interest psymou on long -term debt 239,241) 19,949) 132,098) 96,670) 497,858) 155,000 427,682) 500 Crib bald by fiscal agent Acquisition of property, plant and cquipment 155,000 693,770) 62,253) 4,570,024) 117,384) 8,500) 5,451,931) 5,910,505) 44,209 Colloctioos on special auessma" 25,338 16,610 4,466 46,414 3011Pt000edsfrom "IC of property and egnipmem 123,739 25,491 1,261,279 113,012 1,523,521 4,192,165 capital Residual equity trs fem to other funds 255,790) 35,000) 2"'7 3,237,164) Decrease in de nyA revenue 589 Penalties and koenat on spesssmspecial aue Net cash Vows from capita and rely financing &Mvd 1 644 714 86,122) 311.03 8,500) S 521 750 3270,733 1 Cash flows from investing activities income received 111,327 63,581 74,615 2,941 270,4M 537,519 investment Net w" asa (4c=w) in casb and invesbnents (311,159) 430,823 3,350,368) 250,730 30,220 2,949,754) 730,389 Begmnm6 cash and invests 4,787,799 1,875,403 4,355,346 X826 65,953 11r 1u27 10,459,939 Ending cash andinvestmCMq S 4,476,640 2,306,226 1,004,978 356,5S6 X173 8,240,573 11,190,327 Reooaeiluum of cash and investments to balance sheet: Cash and investments: - - Cusent asset 4,169,435 2,306,226 756,460 356,556 96,173 7,684,850 10,634,604 Restricted assets 307,205 - 248,518 555,723 555,723 1 S 4,476,640 2,306,226 1,004,478 356,556 96,173 82,40;573 11190 27 1 79 80 1 1 Exhibit J-4 CITY OF SEWARD Electric Enterprise Fund Balance Sheet December 31, 2001 with Comparative Amounts for December 31, 2000 20002001 Current assets: Cash and investments 4,169,435 42480,594 Receivables: 67b,053 620,059 Accounts 5,497 Assessments 10,340 24,912 Other Less allowance for doubtful receivables 30,422 28 964) receivables 661,468661,468 616 007 Cash held by fiscal agent 155, 000 Inventory 519,009 442 Total current assets 5,3_ 49912 5,742,143 Restricted assets - cash and investments restricted for bond retirement 307,205 307 205 Assessments receivable 61,140 91,975 Property, plant and equipment: Land and land improvements 230,951 217,951 Buildings 281,474 281,474 improvements other than buildings 34,920,918 34,494,187 Equipment 4 830 169 4,850,332 Property, plant and equipment in service 40,263,512 39,843,944 Less accumulated depreciation 18,796,879 17,553,94 Net property, plant and equipment in service 21,466,633 22,289,997 Construction in progress 2,447,371 2,193,332 Total property, plant and equipment 23,914,004 24,483,329 unamorhzeDeferredcharges - d debt issuance costs 20,304 26,106 29,652,565: 30,665_0,,758 80 1 Exhibit J-4 continued CITY OF SEWARD Electric Enterprise Fund Balance Sheet, continued Liabilities and Fund Equity 2001 2000 Liabilities: Current liabilities: Accounts payable 455,197 650,000 594,510 760,000Currentportionofbondspayable Customer deposits 159,587 143,319 Accrued annual leave 38,645 48,352 Accrued interest 34,339 46,676 other accrued liabilities 2,252 18,808 Total current liabilities 1,340,020 1,611,665 Long -term debt - bonds payable, excluding current portion 3,830,000 4,480,000 Less unamortized deferred amount on refunding 94,902 122 017 Net long -term debt 3,735,098 4,357 9,8`3 Total liabilities 51075,118 5,969,648 Fund equity: Contributed capital 24,227,405 24,103,666 Less accumulated amortization 8,901,28 8,105,973 Net contributed capital 15,326,118 15,997,693 Retained earnings - unreserved 9,251 329 8,683,417 Total fund equity 24,577,447 24,681,110 29,66552,,565 30,650 CrrY OF SEWARD ' Electric Enterprise Fund Statanent of Revenues, Expemes and Changes in Ruined Earnings , Year Ended December 31, 2001 with Comparative Amounts for Year Ended December 31, 2000 92 1 Operating revenues: S 2,047,192 1,910,509 Residential Small general service 1,234,639 1,237,376 Large general service 2,673,894 2,612,133 Industrial 570,802 347,791 83,780 113,958 Harbor power 71,973 66,546 Street and yard lights 99,985 178,6.92 Miscellaneous 6 78 5 6,467, WS Total operating revenues Operating expenses' 3,062,135 2,682,188 Power Distribution 185,759 274,425 Administration and general 1,774,45 y5,022,351 1,725,598 Total operating expenses 4 68 11 Earnings from operations before depreciation 1,759,914 1,784,794 Depreciation 1 26-x— 3-095 1,234,373 496,819 550,421 Earnings from operations Non - operating revenues (acparsesr 111,327 233,757 Investment income 259,821) 346,252) Interest expense 589 penalties and interest on assessments 908XOtherrevenues Net non -0per"4 revenues (expenses) l04 586 108 9 Earnings before operating transfers 392,233 442,024 operating transfers from other funds 3,130 366,995 35000 Nong nfi 36 3855 35 000 Net earnings 28,378 407,024 Amortization of contributed capital 795,314 788531 Increase in retained earnings 823,692 1,195,555 Beginning retained earnings 8,683,417 7,487,862 Residual equity transfers to other funds 255,780 Ending retained earnings S 9,251,329 8,683 417 92 1 1 83 CITY OF SEWARD Electric Enterprise Fund Statement of Cash Flows Year Ended December 31, 2001 31, 2000withComparativeAmountsfarYearEndedDecenba 2491 2M Cash flows from operating activities: 496,819 550,421 Earnings from operations Adjustments to reconcile eamings from operations to net t cash flows from operating activities: 1,263,095 1,234,373 Depreciation 43,908 3,509 Other non - operating revenues Increase (decrease) in allowance for doubtful receivables 1,458 2,855) Increase) decrease in assets: 41,422) 65,773 Receivables 29,467) 37,753 Inventory Increase (decrease) in liabilities: 139,313) 405,795 Accounts payable 16,268 6.777) Customer deposits 707) 10,739) Accrued annual leave 1166,00883 43 Other accrued liabilities 1,586, 2,2381.0122238 Net cash flows from operating activities Cash flows from non - capital financing activities: Operating transfers from other funds 3,130 366 995 35 000 operating transfers to other funds 363 BSS 35000 Net cash flows from non - capital financing activities Cash flows from capital and related financing activities: 760,000) 700,000) Principal payments on long -term debt 286,355) Interest payments on long -term debt 15555,000000 500 Cash held by fiscal agent 693,770) 2,422,138) 1 Acquisition of property, plant and equipment 25,338 22,992 Collections on special assessments 123,739 1,1 44,221 Contributed capital 255 ,780) Residual equity transfers to other funds 207,766) Decrease in deferred revenue 589 Penalties and interest on special assessments 1,644,714) 2483 457 Net cash flows from capital and related financing activities Cash flows from investing activities - investment income received 111,32 2- 3375% Net decrease in cash and investments 31 1,159) 47,188) 4x787,799 4,834 Beginning cash and investments 444640 4,787,799 Ending cash and investments Reconciliation of cash and investments to balance sheet: Cash and investments: 4,169,435 4,480,594 Current assns 307,205 307,205 Restricted assets 4,476,640 4,7,87,799 1 1 83 Exhibit J -7 CITY OF SEWARD ' Electric Enterprise Fund Schedule of Operating Expenses ' Year Ended December 31, 2001 with Comparative Amounts for Year Ended December 31, 2000 1 Distribution: Salaries and employee benefits 338, 285,979 ' 168,440101 ) 2001 200„ 32,848 188,031 Power: Salaries and employee benefits 43,243 53, i 21 t Purchased services 1 15,543 218,785 Administration and general Power for resale 2,816,971 2,287,606 Supplies, maintenance and other 6,378 122676 Total power 3,062,135 22682,188 Distribution: Salaries and employee benefits 338, 285,979 ' Salary credits - work orders 168,440101 ) 1 76,791) Purchased services 32,848 188,031 56,534 297,273 ' Supplies and maintenance 205,39$) 190,858) Supply credits -work orders 2,288 Administration and general payment in lieu of taxes 509,889 Total distribution 185,754 274,425 Administration and general: 268,798 306,168 Salaries and employee benefits 232,494 205,194 Purchased services 140,050 130,318 Supplies and maintenance 542,581 511,101 payment in lieu of taxes 509,889 486,768 Administrative fee 8064? 86,049 Other Total administration and general 1,774,457 1,725,598 Total operating expenses 5,022,351 4L682,211 t,..+ w t CITY OF SEWARD Electric Enterprise Fund Schedule of Electric Capital Projects Year Ended December 31, 2001 Funding source - Electric funds Expenditures: Salaries and employee benefits Contracted services Supplies and materials Equipment Other services and charges Total expenditures 1 1 1 1 85 ExWbit J-8 Standby Electric Genera 6= 1,360 42,148 6,609 3,000 7,087 6„,204 Liabilities: FWit.0 Cwralt liabilities: 7,160 CITY OF SEWARD Ao MMU PIMA* Wow ad Sewer EmMapres Fuel cwrent pOf t1ow 48,479 t154156100ooto0Sh 9657 9.652 Atued smug k n Dwanber 31, 2001 14.361 Accnxd iswnest wilb Coatpasative An a m far DecanW 31, 2000 A1111n X41 737 1i32 Cwralt a ow: invesuro m Trial OxnZA liabddm 2306 1.473 403 Gash and 619,244 667,726 Notes payabk 9,657 117,476 101,342 Accounts 7,069 1,767 Assestmet>ts Odw Total liabilities 790,591 1X40 Less allowom for doubtful mmnbks 11,132,790 4,531 4560 Less accumulated amommdion Net receivable; s 134 57e 1201964- 99'769 PmpRd 10,716 20,126 26,757 3,652,57& T sumcurrag Tool fwd equity 4236,032 2.001 L949 A rosaivabk S 10,766,664 120,002 141.914 may' PhM nd CqU1Pn-t 113,516 113,516 land ad bed unpn n-naas Buildor;a 3,701,067 3,701,067 Leprove —las od>ex wee buikhW 9,674.566 9,527,545 Bwkmcnt prop". Pl" atd in 5.7162115,420,621 l93 13,060,696 6767 Lem a= nwmd dqxwmuon zap, Net property. PIM 00 O*dPnemt in swum 6,155.426 9,163,439 Caaiauc m in 1xow 33,202 340,671 TOW pwpmW Plant and c%pVPwk 6,166,630 8,604,310 S 10,7666664 10,646,173 Liabilities: Cwralt liabilities: 7,160 47,022 Ao MMU PIMA* cwrent pOf t1ow 48,479 46,119 Notes payable Roet MCCXA 9657 9.652 Atued smug k n 1 8.177 14.361 Accnxd iswnest 6,002 344314314. Detested mvawc Odler accn Hawitics 737 1 i32 Trial OxnZA liabddm 171,337 130,491 Long -term deK excludift —mg Pte: 619,244 667,726 Notes payabk 9,657 Ream mll inometive pro M payable Total long -lorm debt 619,244 677,393 Total liabilities 790,591 307,e_74 Fund equity Contributed capital 11,132,790 11,&27,299 Less accumulated amommdion 6,139,225 ? s 134 57e Net cmtnbuW caOW 5,713,565 5,917.721 Retsilsed eami W - wueraved 4,262,51 d 9,976,0113 3,652,57& Tool fwd equity 9 940 S 10,766,664 10,649,173 36 1 CITY OF SEWARD water and Sewer Enterprise Fund Statement of Rwvnues, Expenses and Changes in Retawed Earnings Year Ended December 31, 2001 with Comparative Amounts for Year Ended December 31, 2000 87 M M S 587,139 581,698 140,719 Operating revenues: Residential 117,281 Small general service 127,913 Large general service 157,752 126,467 Industrial 68,930 Seward Marine Industrial Center Ship water sales 76 B40 Miscellaneous Total operating revenues 70,834 299,647 Operating expenses: Water 409,940 Wastewater 3,852,578 Administration and general Total operating expenses 3,852,579 Earnings from operations before depreciation Depreciation Earnings from operations Non - operating revenues (expenses): Investment income interest expense Grants Other revenues Net non - operating revenues (expenses) Earnings before operating transfers Operating transfers from other funds Operating transfers to other funds Net operating transfers Net earnings Amortization of contributed capital Increase in retained earnings Beginning retained earnings Ending retained earnings 87 M M S 587,139 581,698 140,719 142,443 288,635 284,088 117,281 133,158 127,913 124,521 157,752 126,467 65120 68,930 484,559 1.461305 356,315 477,836 275,788 221,453 344,454 3 32,196 976.557 1.031,485 508,002 429,820 377.933 377,101 130,069 52,719 63,581 102,470 17,542) 32,315) 24,800 8,291 54,330 94,955 184,399 147,674 9,734 83,8 74 106 76 B40 110,293 70,834 299,647 298,769 409,940 369,603 3,852,578 3,482 S 4,2 62,518 3,852,579 89 1 Exhibit J -11 CITY OF SEWARD Water and Sewer Enterp w Fwmd Statement of Cash Flown Year Ended December 31, 2001 with Comparative Amounts for Year Ended Deo mtber 31, 2000 Cash flows from operating activities: Earnings from operations $ 130,069 52,719 Adjustments to reconcile earnings from operations to net cash flows from operating activities: Depreciation 377,933 377.L01 Other non - operating revenues 8,291 Increase (decrease) in allowance for doubtful receivables 21 598) Increase) decrease in assets: Receivables 15,894) 62,454) Prepaid expenses 10,716) Inventory 6,631 436) increase (decrease) in liabilities: Accounts payable 9,940 34,623 Accrued annual leave 3,816 764 Retirement incentive program payable 9.658) 19,315 Deferred revenue 34,431 Other accrued liabilities 7) 2,374 Net cash flows from operating activities 527,470 423,408 Cash flows from non- capital financing activities: Operating transfers from other funds 9,734 operating transfers to other funds 83,840) 76.840) Operating grants received 24,800 Net cash flows from non - capital financing activities 74,106 52 040 Cash flows from capital and related financing activities: Principal payments on long -term debt 46,121) 40,634) Interest payments on long -term debt 19,849) 32,604) Acquisition of property, plant and equipment 62,253) 350,106) Collections on special assessments 16,610 19,075 Contributed capital 25,491 11,050 Net cash flows from capital and related financing activities 86,122 393,21 Cash flows from investing activities - investment income received 63,581 102,470 Net increase in cash and investments 430,823 80,619 Beginning cash and investments 1,875,403 1,794,784 Ending cash and investments S 2,306,226, 1,975,403 89 1 i Exhibit M2 CITY OF SEWARD Water and Sewer Enterprise Fund Schedule of Operating Expenses Year Ended December 31, 2001 with Comparative Amounts for Year Ended December 31, 2000 1 2001 LM Water: r Salaries and employee benefits 125,075 172,337 Purchased services 145,552 137,930 Supplies and maintenance 75,187 40,827 rOther 10,501 126,742 Total water 356,315 477,836 rWastewater: Salaries and employee benefits 131,544 82,076 Purchased services 107,584 107,245 Supplies and maintenance 26,997 29,115 Other 9,663 3,017 Total wastewater 275,788 221,453 Administration and general: Payment in lieu of taxes 118,765 116,741 Administrative fee 225689 215,455 Total administration and general 344,454 332,196 Total operating expenses S 976,557 1,031,485 r r r r r r 99 CITY OF SEWARD Water and Sewer Enterprise Fund Combining Schedule of Water and Sewer Capital Projects Year Ended December 31, 2001 Funding sources: State grants Kenai Peninsula Borough Water and Sewer funds Total funding sources Expenditures: Salaries and benefits Contracted services Supplies Other services and charges Total expenditures 90 Exht_ bit ] -13 Backup Generator Fire and Hydrant Building Phase 11 To s 2,422 2,422 23,069 - 23,069 479 479 29 2,901 25,97,U 11,195 11,195 2,111 2,111 7,665 2,523 10,188 2,098 378 _2476 2, 3 069 2 9s1 259 s t CITY OF STEWARD L Hwba psftWise Fund Balance Sheet December 31, 2001 with COmpa a ive Amounts for Dumber 31, 2000 Ago Current assets: S 756,460 4y„a2a Cash wd investrnenU Receivables: 222,239 213,103 Aaounfs 4,484 Grants 4,256 1,072 ASSessments 28 704 l 63 LAN allowamx for doubtful wmvsbks 197,941 197,022 Net receivables 954 --112_3,850 Taal anrrent assets 249,518248,5lE Restricted assets - crib and irrramlits restricted fa bond mtmneht 53,399 61079 1 Assessments receivable property, plant and equipment: 3,377,979 3,377,979 Land and land improvaDCW Buildings 396,187 396,187 4,560,397 4,501,215 WWmvamm other tnw buildings 811,549 it 1S0 Equipnant 9,146,312 9,087,531 property, plot and equipment in smvice 2,999,04) 2 62l Less wcwm wd depeeistion 6,147,618 6,466,031 Net propety, plant wd equipment in savioe 7,819,M9 _ _ 3,323,989 Contraction in puVM 13,967,157 9,790 020 Total property, plant and equipment S 152W75 14,403 467 Liabilities: Current liabilities, 37,362 338,579 Accounts payable Current portion: 90,000 - Bonds payable 10,661 10,661 Retirement incentive prosTaru payable 40,192 40,708 Accrued annual leave 39,629 8,366 Accrued interest 24,342 35.963 Other a=wW liabilities 374,037 4J58,559 Defaced revenue 6_ 16,413 892 836 Tool current liabilities Deterred revenue - Alaska Railroad Corporation low raxivable 39,932 __ 73622 Lmg.wm debt, excluding eurmat portion: 2,910,000 3,000,000 Boots payable 10.661 Retirement incentive progtwn payable 2,910,000 33 010661 Total tongtam debt 3,566,345 3,977l 19 Total liabilities Fund equity: 10,970,412 9,613,617 Contributed capital 1,855,17!) Less accumulated manatz2 ion 9,014,541 8,093,908 Net contributed capita 2,642,489 2 3444 Retained earnings . unsaved 11,657,030. 10,426.30 Total fund equity S 15,223,375 14,403 467 91 CITY OF SEWARD Harbor Enterprise Fund Statement of Reventim Expenses and Changes in Retained Earnings Year Ended December 31, 2001 with Comparative Amounts for Year Ended December 31, 2000 I 2M 2M operating, revenues: S 877,629 864.788 Moorage 4Q,702 70,539 B fenBootlift 120,924 Power Sales 104,889 228,090 137,661 244,9911 9 Rentals and leases 238,880 Passenger transit fee 157,9!6 X393 Miscellaneous 1,733,281 1,508,524 Total operating revenues Operating expenses: 352,746 341,676 Salaries 161,245 246,312 Employee benefits 159,615 236,397 Purchased services 59,677 159,863 Power for resale 107,366 59,076 Supplies and maintxatance 232 3-4 061 Administration and general i 1-- 853 1-- PTotaloperatingexpenses 32xg53 277,939 Earnings from operations before depreciation 602,426 Depreciation 392,887 39742 Earnings (loss) from operations 209,539 120,053) Non -operating revenues (expenses): 301 Gaits on disposal of propefty and equipment 76,613 186,458 InvesMent income 163 laterest expense Net non - operating revenues (expenses) 86,7 186,739 Earnings before operating transfers 122,793 66,736 Operating transfers from other funds 9,651 123,557 132460 Operating transfers to other funds Net operating trannsfers 123,55 132460 Net earnings (loss) 764) 65,724) Increase in retained earnings for reclassification from contributed capital 1,447,251 Amortization of contributed capital 336,162 335 091 Increase in retained earnings 333,398 1,716,618 Beginning reWned earnings 2,332,440 618.822 Residual equity transfers to other funds 35, M I Ending retained earnings S 2,632,838 2,332,440 92 Exhibit J -16 MY OF SEWARD Harbor Enterprise Fund Statanent of Cash Plows 9,651 Year Faded December, 31, 2001 123,55 132 460 with Comparative Annowu for Yes Ended Dooemba 31, 2000 I 13,906) J132 460 financing activities: 2 2444 Cash flows from operating activities: S 209,339 120,033) Earnings (loss) from operations 3,008,366 Adjustments to reconcile earnings (lots) tram operations to net cab 132,046) flows Boom operating activities; 392,887 397,992 Depreciation Increase (decrease) in allowance for doubtful MMvebles 7,067 5,268) Increase) de acne in assets - receivables 9,156) 19,704 h=ease (deavow) in liabilities: 1,261,279 3,036,894 Accounts payable 301,217) 306,457 Accrued annual leave 526) 3,035 Other accrued liabilities 1 1,421) 20,281 Deferred revennrne 118,212) 16,208) Rdiremennt incentive program payable 19,661) 616,996 Net cash flows from operating activities 138,300 58&963 1 93 Cash flows from non - capital funancing activities; Opersi ft transfers from other [bads 9,651 Operating crannrfen to other funds 123,55 132 460 Net cash flows from non - capital financing activities I 13,906) J132 460 financing activities: Cash flows from capital and related Proceeds from issuance of long -term debt 3,008,366 Inntamt payments on long-term debt 132,046) Acquisition of property, plant and equipment 4,570,024) 3,038,300) proceeds from sale of property and equipment 301 Collections on special Mmu ants 4,466 2,142 Contributed capital 1,261,279 3,036,894 Residual equity transfer to other funds 35,000) Decrease in deferred revenue 3 029 398 Net cash flows from capital and related frn=M9 activities L3,471,377 l9 945 Cash flows from investing activities - investment income received 76,615 186,488 Net increase ( decrease) in cash and investmenits 3,350,368) 616,996 Beginning cads and investments 4,353,346 3,738,350 Ending cash and investments S 1,004,978 4,3551346 Reconciliation of cash and investments to balance sheet: Cash and investments: 5 736,460 4,106,828 Current assets Restricted assets 248,518 248,518 1,004,978 4 3 ,33 34b 1 93 CITY OF SEWARD Harbor Enterprise Fund Combining Schedule of Harbor Capital Projects Year Ended December 31, 2001 Funding sources: State grants Harbor revenue bonds Harbor funds Total funding sources Expenditures: Salaries and employee benefits Contracted services Supplies and materials Other services and charges Total expenditures 94 Exhibit Harbor Harbor Plaza Repair and Renovation Renovations Totals S 1,955 49,839 51,794 3,000,000 3,000,000 368 1,502,635 1,503,003 4,5 4 j5..97 265 882 1,147 824 3,050,906 3,051,730 935 1,054,050 1,054,985 299 446.636 446,935 2,323 4,5_52,474 4,554,7 97 I w i MY OF SEWARD Seward Marine Industrial Center Entorprioe Fund Balance Sheet Deom*w 31, 3001 with Comparative Teals for December 31, 2000 9WO 25141 S?44 Currem assets: 356,556 105,826 Cash and investments 44,32444,324 34002 Accounts receivable Total current assets 400.8$0 139 82a Property, plant and equipment in service Land and land rights 12,044,821 12,044,821 Buildings 271,649 271,649 Improvements other than buildings 25,792,993 25,792,993 Equipment 908,788 904,416 t Docks and floats 13.145.688 13- 14.(:S! Total property, plant and equipment 52,163,939 52,159,567 Less accumulated depreciation 19,006,863 17,771,24j3 Net property, plant and equipment in service 33,157,076 34,385,324 Construction in progress 3.012113.012 Total Property, Plant and Equipment 33,270,088 34 3485,324 iDeferred charges - unamortized debt issuance costs 14,743 17,012 S 33685,711 34,542,164 Liabilities and Fund Eauity Liabilities: Current iiabilities: 107,201 4,075 Accounts payable Current portion: 152,348 139,995 Bands payable 15,000 70,000 Capital lean obligations 12,217 12,789 Accrued interest 246 1,838 Other accrued liabilities Deferred revenue 98.216 494 5 Total current liabilities 235'697 Long -term debt, excluding current portion: Bonds payable 889,380 1,041,728 L= unamortize d deferred amount an refunding 97,810) 1 12, 000 Capital lease obligations 265,000 Total long -term debt 1,056,570 1,268,870 Total liabilities 1,501,798 1,504,567 Fund equity Contributed capital 49,923,694 44,810,682 Less accumulated amortization 17,367,0 16 253 204 Net contributed capital 32,556,676 33,557,478 Retained earnings deficit - unreserved 372,763 519,881 Total fund equity 32,183,913 33,037,597 Z 33,685,7 34,542,, 164 1 95 CITY OF SEWARD Seward Marine whistrial cm mw Enterprise Fund Statement of Rgw omw Expenses and Changes in Retained Famines (Deficit) Year Ended December 31, ?,001 with Comparative Amounts for Year Ended December 31, 2000 Operating expenses: na am Operating revenues: S 23,825 62,404 Moorage 97 436 54,384 Wharfage 122.820122.820 121,170 Boat lift fees 47,398 133,139 Storage 37,997 63,207 Rentals and leases 13,840 15,225 apowersales 1,540 3,71 S Miscellaneous 390,323 453,449 opwiting uesTowMy 1,1 13 S 1,335,658) 11113,915 Operating expenses: sa,97s s3,7a3 Employee benefits 13, 7,071 eryPurchasedservices 97 436 67,197 Supplies and maintenance 59,03638,036 189,430 77,202 7SAdministrationandgeneral 358,884 283,133 Total operating expenses 7 69 28D,770 770 Earnings from operations before depreciation 20,534 172,679 Depreciation 1,232, 1,232,863 Loss from operations 1,212,066) 1,060,194) Non - operating revenues (expenses): 13,480 10,564 Investment inco me 113 416 124,251) Interest expense Net non - operating revenues (expenses) 97 436 113 690 Loss before operating transfers 1,309,502) 1,173,874) Operating transfers from other funds 358,884 283,133 Operating trawfen to other funds 16,07 12 366 Net operating transfers 342,805 272,747 , Net loss 966,697) 901,127) Decrease in retained earnings for corrections to contributed capital and accumulated depreciation 1,1 13 S 1,335,658) 11113,915 Amortization of contributed capital t61 Increase (dcerease) in retained earnings 147,118 1,122,970) Beginning stained earnings (deficit) 519.88.11 603.089 Ending deficit S 372,763 S 19 88l PTI 1 r Exhibit J7!20 CITY OF SEWARD 1 Seward marine Industrial Center Enterprise Fund Statement of Cash Flows Year Ended December 31, 2001 with Comparative Amounts for Year Ended December 31, 2000 M 2.M Cash flows from operating activities: Loss from operations S 1,212,066) 1,060,184) Adjustments to reconcile loss from operations to net cash flows from operating activities: Depreciation 1,232,620 1,232,863 Increase in assets - receivables 10,322) 1,713) Increase (decrease) in liabilities: Accounts payable 103,126 484 I Other accrued liabilities 1,592) 735 Due to other funds 20,688) Deferred revenue 91.216 17,328) Net cash flows from operating activities 202,982. T 134,169 ICash flows from non - capital financing activities: fuOperatingtransfersfromotherfunds 358,884 2$5,133 Operating transfers to other funds 16,0791 12Z3 Net cash flows from non - capital financing activities 342,805 272,747 Cash flows from capital and related financing activities: I Principal payments on long -term debt 209,995) 200,878) ants on long-term debtInterestpaymentsg- 96,670) 108,723) Acquisition of property, plant, and equipment 117,384) 2,053 ) Contributed capital 113,012 Net cash flows from capital and related financing activities 311 037 311 654 Cash flows from investing activities - investment income received 15,980 10,564 Net increase in cash and investments 250,730 105,826 Beginning cash and investments 105,826 IEnding cash and investments S 356,556 145,826 I IP, 1 97 Exhibit J -21 CITY OF SEWARD Seward Marine Industrial Center Enterprise Fund Schedule of SMIC Capital Projects Year Ended December 31, 2001 Shipyard urovement Funding source - State grant $ 113,012 Expenditures: 99,044 Pass through payments 13,969Otherservicesandcharges Total expenditures $ 113,012 98 Exhibit J -22 CITY OF SEWARD Parking Revenue Enterprise Fund Balance Sheet December 31, 2001 with Comparative Amounts for December 31, 2000 I Liabilities and Fund Equity Current liabilities: Assets M 2000 Current assets - cash and investments 96,173 65,953 I Property, plant and equipment 132 Land and land improvements 500,041 500,041 Equipment 8.500 433,543 Total property, plant and equipment 508,541 500,041 404,598) Less accumulated depreciation 415,344 368,435 INet property, plant and equipment 93,197 131,606 158,051 122,698 iTotal 189,370 197,559 Liabilities and Fund Equity Current liabilities: Accounts payable 2,360 90 Other accrued liabilities 14 42 Total current liabilities 2,374 132 Fund equity: Contributed capital 433,543 433,543 Less accumulated amortization 404,598) 358,814 Net contributed capital 28,945 74,729 Retained earnings - unreserved 158,051 122,698 iTotal fund equity 186,996 197,427 I$ 18_ 9,370 197, Exhibit 3 -23 CITY OF SEWARD Parking Revenue Enterprix Fund Statement of Revenues, Expenses, and Changes in Retained Earnings Year Ended December 31, 2001 with Comparative Amounts for Year Ended December 31, 2400 2001 2000 operating revenues - parking fees $ 109,603 1212 592 Operating expenses: Salaries and employee benefits 4$ 813 42,005 Contracted services 5,682 1 z,44a Supplies and maintenance 4, 15,977 Rents and leases Administration and general 3,333131 14,12.6_ 2,331 1_ 3236 Total operating expenses 76,066 85,989 Earnings from operations before depreciation 33,537 35,603 Depreciation 46, 909 - -34,813 Loss from operations (13,372) (8,210) Non - operating revenues - investment income 2,941 _4,240 Net loss (10,431) (3,970) Amortization of contributed capital 45,784 _ 42,589 Increase in retained earnings 35,353 38,619 Beginning retained earnings 122,698 84,079 Ending retained earnings $ 15_ 8 122, 100 CITY OF SEWARD Parking Revenue Enterprise Fund Statement of Cash Flows Year Ended December 31, 2001 with Comparative Amounts for Year Ended December 31, 2000 Cash flows from operating activities: Exhibit 2001 2000 Loss from operations $ (13,372) (8,210) Adjustments to reconcile loss from operations to net cash flows from operating activities: Depreciation iIncrease (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 Ending cash and investments 1 t 101 46,909 43,813 2,270 (3,842) 28 42 35,779 31,803 8,500 61,908 2,941 4,240 30,220 (25,865) 65,953 91,818 96,173 65,9,53 THIS PAGE LEFT BLANK INTENTIONALLY 1 I 102 1 INTERNAL SERVICE FUND The Internal Service Fund is used to account for goods and services provided on a cost - reimbursement basis, by one City department to other City departments, and consists of the Motor Pool which accounts for the acquisition of vehicles and mobile equipment which are then leased to the various departments of the City. S CITY OF SEWARD Motor fool Internal Service Fund Balance Sheet December 31, 2001 with Comparative Amounts for December 31, 2000 Exhibit K- i Assets 2001 2000 Current assets - cash and investments S 617,834 456,980 Equipment and vehicles 1,760,011 1,277,855 48,646 Less accumulated depreciation 876,24$ 754 086 Total liabilities Net equipment and vehicles 883,763 523,769 r$ 1,501,597 9 80,74.9 101,824 Liabilities and Fund EauiV 6,809 Liabilities: 75,852 Current liabilities: 1031017 Current portion of capital lease obligations Accrued interest 544,917 Total current liabilities 48,646 Long -term debt - capital lease obligations, excluding 496,271 current portion 533,867 Total liabilities 1,030,138 Fund equity: Contributed capital Less accumulated amortization Net contributed capital Retained earnings - unreserved Total fund equity 1 1 103 101,824 75,852 6,809 108,633 75,852 362,826 1031017 471,459 178,869 544,917 509,918 48,646 38,91 496,271 471,001 533,867 330,879 1,030,138 801,880 1,501,597 980,749 Exhibit K -2 CITY OF SEWARD Motor Pool Internal Service Fund Statement of Revenues, Expenses, and Changes in Retained Earnings Year Ended December 31, 2001 with Comparative Amounts for Year Ended December 31, 2000 2001 2000 Operating revenues - vehicle rental $ 317,775 213,983 operating expenses - depreciation 122,162 1317739 Earnings from operations 195,613 82,244 Non - operating revenues (expenses): Investment income 17,090 22,478 Interest expense (19,444) 12,547 Net non - operating revenues (expenses) ( 2, 9,„931 Net earnings 193,259 92,175 Amortization of contributed capital 9,729 9,729 Increase in retained earnings 202,988 101,904 Beginning retained earnings 330,879 228,975 Ending retained earnings S 533,8667, 330,879 104 CITY OF SEWARD Motor Pool internal Service Fund Statement of Cash Flows Year Ended December 31, 2001 with Comparative Amounts for Year Ended December 31, 2000 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 Noncash capital and related financing activities: Equipment purchased by capital lease 1 105 E2kbij 2001 2000 195,613 82,244 122,162 131,739 317,775 213,983 87,263) 93,323) 12,635) 13,380) 109,112) 4,810) 34,999 4V810 174,01 1!2§1703 17,090 _ 22,478 160,854 129,758 456,980 327,222 617,8 45 6w 373,044 THIS PAGE LEFT BLANK INTENTIONALLY l 1 1 1 t 106 1 t t Ili I FIDUCIARY FUND The City utilizes agency funds, which are a category of Fiduciary Funds. Agency funds are used to account for assets held by the City in an agent capacity for other funds, governments, or individuals. 1 Exhibit L -1 CITY OF SEWARD Agency Funds Combining Balance Sheet December 31, 2001 with Comparative Totals for December 31, 2000 AVTEC Teen Council Contract Agency Agency Totals As Fund Fund 2001 2000 sets Cash and investments 21,561 1,648 23,209 15,714 iabiliti Accounts payable 2,891 88 2,979 1,228 Due to others 18,670 1,560 20,230 14,486 21! 11,66448 23 ,209 15! 1 1 107 CITY OF SEWARD Agency Funds Combining Statement of Changes in Assets and Liabilities Year Ended December 31, 2001 Teen Council Agency Fund A" ssets Cash and investments Liabi i ie Accounts payable Due to Teen Council AVTEC Contract Agency Fund Cash and investments Liabilities Accounts payable Due to AVTEC Totals - All Agency Funds Assets Cash and investments Liabilities Accounts payable Due to others Exhibit L-2 Balance at Balance at January 1, December 31, 220 w. Additiou Deletions 2M 15:079 22,106 15,6 21,561 1,012 1,891 12 2,891 14,067 20,227 15,624 18,670 115,00779„ 22,E 1_.5,6 ,.,21,561 23,209, S 6335 3,458 2,445 1,649 216 88 216 88 419 3,370 2,229 1,560 635 3,458 2,445 1,648 15,714 25,564 18,069 ,,. 23,209 1,228 1,979 228 2,979 14,486 23,597 17,853 20,230 1 5,7 14 25,576 18,0 23,209, 109 GENERAL F=n AssrT ACCOUNT Gltolrn Account GroupTheGeneralFacedAssetp 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 accountgroup 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. n 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CITY OF SEWARD General Fixed Assets Account Group Schedule of General Fixed Assets by Sources December 31, 2001 with Comparative Amounts for December 31, 2000 General fixed assets: Land and land improvements Buildings Improvements other than buildings Equipment Construction in progress Investment in general fixed assets: Capital Project Funds General Fund 109 Exhibit M -1 2001 2000 4,233,205 4,053,605 51,391,552 51,318,129 11,057,047 10,883,191 3,541,556 3,151,491 5.110.314 1,332,178 75,333,674 70,738,594 66,499,754 65,059,438 8,833,920 5,679,156 75,333,674 70,738,594 Exhibit M -2 CTTY OF SEWARD General Fixed Assets Account Group Schedule of Changes in General Fixed Assets Year Ended December 31, 2001 70,738,594 4,996,729 401,649 75,333,674 110 Balance at Balance at January 1, December 31, 2001 Additio ns Deletions 2001 Land and land improvements 4,053,605 179,600 4,233,205 Buildings 51,318,129 73,423 51,391,552 Improvements other than buildings 10,883,191 173,856 11,057,047 Equipment 3,151,491 495,083 105,018 3,541,556 Construction in progress 1,3321178 4,074,767 2%,631 , 5,110.314 70,738,594 4,996,729 401,649 75,333,674 110 CITY OF SEWARD General Fixed Assets Account Group Schedule of General Fixed Assets by Function and Activity December 31, 2001 Function_and 60N-itY General government: City Council/Mayor City manager City clerk Finance Community development Municipal building Alaska SeaLife Center General services Community and Senior Center Non-departmental Total general government Public safety: Police Jail Animal control Fire Seward Volunteer Ambulance Corp Total public safety Public works: iStreets Building inspector City shop Total public works Hospital Parks and recreation Library Total general fixed assets allocated to functions 1 Construction in progress 1 Total general fixed assets Land and Land ImRrovements BuildiM Improve- ments Other than Building; ui me Exhibit M -3 Total 54,323 54,323 11,793 11,793 7,394 7,394 190,440 190,440 5,860 5,860 2,200,080 - 60,852 2,260,932 37,599,774 1,976,439 1,487,845 41,064,058 8,005,938 35,169 8,041,107 920, - - 709 920,709 88,768 4,233,205 4.233,205 40,720,563 ,992_.37_7 1,853.676 56,789,821 212,825 212,825 12,562 12,562 156,720 - - 156,720 947,137 - 493,756 1,440,893 6100 6.300 1.103,857 7_ 25,44_3 L&22.2-00 116,945 129,804 619,508 866,257 2,600 2,600 771,823 31,030 802,853 88,768 129,804 653,138 1,671.710 7,745,896 116,012 7,861,908 284,909 932,066 120,425 1,337,400 647,559 12.800 72.,,862 733,221 4,233,205 51,391,552 11,0, 57 =047 3,5 41,556 70,223,360 111 5,110,314 S 75,333,674 Exhibit M-4 CITY OF SEWARD ' General Fixed Assets Account Group Schedule of Changes in General Fixed Assets by Function and Activity Year Ended December 31, 2001 i General Fixed General Fixed ' Assets at Assets at January 1, December 31, Function and Activill 2001 Additions Delefignps 2001 , General government: City Council/Mayor 54,323 54,323 City manager 9,140 2,653 11,793 City cleric 10,613 3,219 7,394 Finance 187,516 2,924 190,440 Community development 5,860 5,860 Municipal building 2,233,949 26,983 2,260,932 Alaska Sealife Center 40,698,078 365,981 41,064,059 General services 8,037,651 3,455 8,041,106 Community and Senior Center 920,709 920,709 Non - departmental 4,053,605 179,600 4,233,2 OS Total general government 56_ ,211,444 581,596 3,219 56,789,828 1 Public safety: Police 177,219 35,606 212,825 Jail 12,562 12,562 Animal control 156,720 156,720 Fin 1,303,168 137,725 1,440,893 Seward Volunteer Ambulance Corp 61,614 55,384 6,300 Total public safety 1,711,283_ 173,331 55,314 1 8300 Public works: Streets 866,257 866,257 Building inspector 2,600 2,600 City shop 796,823 6,030 802,853 Total public works 1,665,680 T 6,030 1,671,710 Hospital 7,861,908 7,861,908 Parks and recreation 1,206,865 153,688 23,153 1,337,400 Library 749,236 7,317 23,332 733,221 Construction in progress 1,332,178 4,074,767 296,631 5,110,314 70,738,594 4,996,729 401,649 75,333,674 112 1 GENERAL LONGTERM 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. n CITY OF SEWARD General Long -Term Debt Account Group Schedule of General Long -Term Debt December 31, 2001 with Comparative Amounts for December 31, 2000 Amount Available and to be Provider, for the Payment of General Long -Term De 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 lone -Term Debt Payable Accrued annual leave 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 113 2001 Exhibit N- 685,422 564,909 229,151 190,016 7,560,134 8,070,652 24,526 49,053 960,286 9286 8,774,097 9,2 70,007 S 9,459,5^ 9,8916 229,151 190,016 223,272 253,277 1,280,000 1,375,000 6,620,000 6,885,000 24,526 49,053 1,082,570 1,082,570 9,459,511,9 9,8_34, THIS PAGE LEFT BLANK INTENTIONALLY I 114 1 u FEDERAL AND STATE FINANCIAL ASSISTANCE SCHEDULES 0 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 Gowrnment Audi ft Standards and State of Alaska Audit Guide and Conyanae Sgpplu wnt for Single Audit. 1 CITY OF SEWARD Sole of Bxpedluaea of Fed" Awards Yew Faded Decomber 31. 2001 paMartawe of Alrirrkara NRCS Flood M 6pUmfEaii -u* NRCS Flood MuiptionV—MUW- H* Seh001 Grawhooae ToW D"rmtent of A1r—h rs Daprlwaat of lowder Yard Ibroalli State of Ahuka Drprmant of Nuaral itwumm Hitmr" Prerrvatiw 10.904 6"1504424 500,000 227.030 57,667 49,737 119,102} 15,1311 C"" of 119.112 l01 10.670 01 DGI 1 100000232 1000 _ 2424 4.000 1,574 238s4i _ 427,696 619,579 43,665 Federald Fe iopd Grant Jac. 1, 2001 Receivable Federal Share of Federal Dec. 31, 2001 Receiv" AssiManoe Grant Number Number Award ditum R ' aa0meep Vairal Lmerpsq' Maaoparat Ara4 Fred tLr00 30M of Alaaha Do" rtaetat of MI"" a" VeMrau AHa1n 326,151 221,925 205,191 16,417 e JipaaeKCreeklavy 13.519 - 13.544 YFIwIA•AX- DR•1316 372,129 11,11117 141.375 617 149 Avalanche "Ptioo i11 3?? 206.515 165,667 Total Federal Ermetleac7 Maarbemwt Aswcy Daprtnwt of Traaeprtatim Maned throaiM State of AIuYa Dpnrtmwt of f b k SOW BicycloTedomMiaa Safes ONO 20.600 1.500 1,500 I'M paMartawe of Alrirrkara NRCS Flood M 6pUmfEaii -u* NRCS Flood MuiptionV—MUW- H* Seh001 Grawhooae ToW D"rmtent of A1r—h rs Daprlwaat of lowder Yard Ibroalli State of Ahuka Drprmant of Nuaral itwumm Hitmr" Prerrvatiw 10.904 6"1504424 500,000 227.030 57,667 49,737 119,102} 15,1311 10,904 68-0150-0423 1.000,000 1,511 367,603 565,122 119.112 l01 10.670 01 DGI 1 100000232 1000 _ 2424 4.000 1,574 238s4i _ 427,696 619,579 43,665 13 mm Daprt,aat of H"M ant Haman Services paaad th"00 State of Alaalu Depot I of Hoahf aa6 Social Service" Health Servieas Fio&wW Analysis 93.xxx Olin of lAhrary liervbr pied thrwO State of Alm" Depremwl of Edaeatlaa nerd Early D-An mmat ftblic Access Camyuw m 45.310 Total Federal Finamciml Arasranc e 013351 061122 a"1- 770.129 1 115 1,540 1,196 1.196 14,000 12_044 !2000 201 2-641 Lot S 244,435 101335 131,431 i 221,332 116 1 Exhibit P -1 CITY OF SEWARD Schedule of State Financial Assbw= Year Eaded December 31, 2001 Total Jan. 1, 2001 State Dec. 31, 2001 cram Grant PW*ivable Shan of State Receivable State Grant Title Number Award farad Ex 'tares Receipts Deferred Department of Community sad Eeoaomlc Developmest 02-DC -039 x 1,000,000 113,012 200,000 86,998) Shipyard Portable Worl Wstion 941668 -9.003 50,700 111 11 ! Hillh School B&e Path Extension Historic Records Preservation, Phase 11 97!666 -9-007 28,662 326) 2,468 1,942 Harbor Plaza Renovation 98/668 -9-001 50,000 4,484 1,955 15 6,439 14,000 14,000) ADA Bus Stop 02- RR-003 99/666-5-003 70,000 29,980 1S 911 Equiprent Replaoammt City Hall Facilities and Equipment 01- MG-141 75,532 5,510 5,510 2,317 Fire Hydrant Upgrade 02- MG-128 73,546 69,197 2,422 89,187 103 S9,197 Revenue Shaft 79,647 79,647 79,647 Safe Communities Shavd Fisheries Business Tm 5,7% 5,7% 5,7% Fisheries Resource Landing Tax 18,096 18,096 180% 420.848 19$.6711 Total Departawnt of Community and Economic Developno nt 9,754 312A23 Department of Envimm"W Coaaervatiea 76909 24,800 1,240 X240 Water Distribution System Analysis Department of Reverse 9351, 19 351,549 331,549 Fish Business Tax Electric and Telephone Cooperative Tax 189 189 l89 19,500 19.300 Liquor Tax 371,239 371,238 Total Deportment of Revenue Department of Tramportadoe sod Pablic Facilities Seward Haber, Transfer 3.134,200 49,93 49,939 Department of Education and Early Development 50,800 19,473 19,473 AVTEC Student Service Center Grant 50,800 39,563 17.119 22,445 AVTEC Student Service Center Grrrtt Gmt PLA -02- 770-70 6,400 14 6.400 6,386) Library Public Assistance Library Public Assistance Grant PLA -01- 770.68 6,300 b 300 6,300 Total 13ep+stmert of Education and Early Development 13 173 45,877 42. 991 05916- Department of Fish and Game VOS Alasim SeaLite :nter Y41y 26,092,445 43,345 Deportment of Military and Veterans Again Avalanche Mitigation FEMA -AK -DR -1316 101,112 2, %2 47,123 206 49,879 Japanese Creek Levy 105,571 7975 68,632 5,343 Total Department of Military and Veterans Affairs 29662 121,098 69,838 5S,222 Department of Nswral Resoarces Fine Equipment 39672 2,500 2,300 2,500 Department of Public Safety Equipment 4,000 4'000 4,000 Total State Financial Assistance S 955 906,975 9531 980 6,! 50) Mmia p op- t 116 1 L 1 PART III I STATISTICAL SECTION 1 Table 1: Greueral Fund Revenue by Source C Table IA: General Government Tax Revenues by Source Table 2: General Fund EMmiditures by Function Table 3: Table 4: Property Tax Levies and Collection Assessed Estimated Actualand Value of Taxable Property Table 5: Property Tax dates — Direct and Overlapping Debt Table b: Special Property Assessment Collections Table 7: Ratio of Net General Obligation Bonded Debt to Assessed Value Net General Obligation BondedAnd 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 C 1 CITY OF SEWARD General Fund Revenues By Source Last Ten Fiscal Periods's i Property LS=M 1st CMMM raw Fa, As and for and 1992 2,627,050 6,506 74.005 913,137 1,879,663 18,158 245,872 124,466 5,888.856 1993 2„509.708 32473 23,736 983,759 2,425.012 41,892 236.986 47,862 6,301,528 1994 202,005 19,795 33.132 903,835 2,104,588 35,230 102,824 36,807 6,118216 1995 3,081,177 2,241 61,073 789,157 1,760.860 49.289 221,832 39,340 6,044,969 1996 2,923,340 524 119,982 909,521 1,595,223 26,945 219,514 106.126 5,901.175 1997 3,072,913 1,871 240.964 1,099,869 1,662.854 12,383 280.363 50,079 6,381.294 1998 3,293,763 0 115.106 1,105.212 1,50,141 14.495 261,974 147,861 6,478,552 1999 3,584,389 0 144,003 1.021,204 1,475.581 17,347 214,140 218,597 6,675.266 i"1999 2,255,326 0 73,715 438,185 925,721 10.748 104,719 41.956 3,850.370 2000 3,953,139 0 139,871 984,231 2.179,832 14.786 438,005 247,461 7.957.313 2001 3,913.556 0 134,396 1,120,299 2.161,177 16,378 447.888 290.694 8484.388 I Effective July 1, 1999, the City of Seward changed fi nm a fiscal year ending June 30, to a calendar year ending Decaaber 31. This schedule includes ten full fiscal years plus the six -month transition period. Reprcsents the six-month period from July 1. 1999 Wrough December 31. 1999. 117 i Table IA I CM OF SEWARD ' General Government Tax Revenues By Source Last Tea Focal Periods' F W Property Sala LUm Hotd/mem JLUL TM- S#L iTll B Tazfll SSW_ 1992 619366 1,268.572 694653 46.259 2•627•S 1993 5515,286 1, 286,358 681,613 26,449 2,309,708 1994 466.880 1,484355 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 3,07x,913 1998 S518,788 1,820,230 799,978 148,211 6.536 530293.763 1999 523,993 2.029.483 864,106 163.330 3,475 3.584.389 1999 515344 1,197.288 419,108 122.248 1,138 2255.326 2000 694,332 52,197,561 844383 212.619 4.044 3,953,139 2001 663,747 2, 165, 586 872,749 209.458 SZO16 3,913,5% m a calendar December 31. l;ffectiv e July 1. 1999. the City of Seward dhat gpd from a fugal year erdtng June 3Q year endn This scbedule includes tea fall focal years plus the six -month traga um period. RqNmenu the six - montb period ftm July 1, 1999 through December 31. 1999. 1) In Fiscal Year 1954 and 1995, lodging assessment fee was based on $30 per room. per year. Beginning Fiscal Year 1996, lodging assessment foe was replaced by 4% howl/motel roan tax. 2) Represents tax - related penalties and interest, and harbor paridng assessu mt fee (discontinued after FY96). n 118 I CITY OF SEWARD General Governmental Expenditt m By Function (1) Last Ten Fiscal Periods * Kcal General Publk Public Park* sad DM 1992 $1,851,718 $1,64001 $692,653 $493,106 $193,510 $345,265 $5,216.333 1993 $1,779.085 $1,682,176 $689" $471,045 $184,274 5367509 $5,173.298 1994 $1,542,179 $1.782,396 $722,202 $443,661 $200,553 $343,702 $5,034,693 1995 $1.567387 $1.835,194 $801,753 $430,112 $190,517 $282,748 $5,107.611 1996 $1,485.9W $1.860.349 $791, 868 5508.467 $218,175 $270.201 $5.134,963 1997 1972,584 1.919.233 790.386 632,389 228.894 220,816 5,764,302 1998 1.960,687 1, 876, 870 931. 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 2001 1,735.231 1,984.845 1,152,948 789,615 238,832 957,979 6,779,450 Ef1'octive 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 General Fund and Debt Service Fund I 119 Table 3 CITY OF SEWARD Property Tax Levies And Collections ' Lubt Ten Fiw4l Periods * 120 TOW Ta: Web of DdWqomt TOW great Percent Ddingowt TOW Callecam Ontstendioi Taw As A FWW Tams Tax of Leery Tax Tax As A % Ddiaguent S Of TOW Le" xlK JAM valkawn QdIMUL Qdkd= COUNAM -QLUM lug- 1992 489.225 447,123 91.4% 22,471 S4fi9.594 96.0% 76.962 15.7% 1993 498,366 470,322 94.4% 31,983 502.305 100.9% 67,164 13.5% 1994 496.933 434,736 87.5% 29,171 463,907 93.4% 98,709 19.9% 1995 546115 46+9,274 85.9% 99,191 568,465 104.1% 76.237 14.0% 1996 505.034 447,110 88.5% 66.044 513,153 101.6% 68,253 133% 1997 489.187 438312 89.6% 2,294 440.807 90.1% 83,3x9 17.1% 1998 495;052 466328 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 523.453 484.306 925% 4.627 488.931 93.4% 70,490 13.5% 2000 606781 571.261 94.2% 41,770 613,031 101.0% 64,241 10.6% 2001 625, 110 592. 042 94.7% 32,951 624.993 99.9% 564,358 103% EffoWvc iuly 1, 1999. the City of Sewud changed from a fmscal year ending June 30, to a calendar yew ending December 31. Timis schedule includes ten full fiscal years plus the six -month OwNIti00 paiad. Rapresamts the six -month period finch July 1, 1999 through Decembcr 31, 1999. Source: Kenai Peamsula Borough 120 MY OF SEWARD Assessed And Estimated Actual Value of Taxable Property Last Ten Fiscal Pwiods Effective July 1. 1999, the City of Seward changed from a fiscal yew andiog June 30, to a calendar year ending December 31. This schedule includes ten fitll fiscal years plus the six -month transition period. A Represents the six -month period from July 1. 1999 through December 31. 1999. I Source: "Alaska Taxable ", State of Alaska Kenai peninsula Borough Certified Assessment Roll 1 121 Real Property Pew Property Total Properly Ratio d Tatal Estimated Estimated Estimated Assessed Value Flacal Assessed Actual Assessed Actual Assessed Actual To Total Est. YAL YAW Vdtte Value _ vtllo_ Value slValue- 1992 288,464,566 100,667,900 52,574,761 68.929,200 141.039.327 169 ,597,100 3.16% 1993 292,122.160 98,261,300 50,038,979 266,112.200 142.161,159 164.383,500 86.48'4+ 1994 102,022.980 111 .378,100 53,373,128 269.439,400 155.396,108 180.817.500 85.9496 1993 103,330.330 2111,294,400 73.604,139 94,472,100 2178,934,469 203.766,500 80696 1 1996 105,272,150 2113.833.300 38,875,732 77.447,000 2164.147,882 191,300,300 85.8196 1997 108.318,979 117,443.100 50.476.044 70,537,400 158,793,023 187,980,300 84.47% 1998 106,196.750 117.506,400 49,233,008 267.733,600 153,449,758 185262,000 83.91% 1999 2106.918,000 114,049.300 52.852.139 70.534,400 139.770,139 184,583.700 86.5696 A 1999 113,464,200 124,730,000 38,163,405 72.987,600 171.627,605 2197,717,600 86.80% 2000 134,991.200 167.589,200 33,354,065 271,932.600 210.343.265 239,541,800 97.91% 2001 2152.839,700 2172,127,800 257.901,379 77,274, 400 2210.741.079 2249.402,200 84.5096 Effective July 1. 1999, the City of Seward changed from a fiscal yew andiog June 30, to a calendar year ending December 31. This schedule includes ten fitll fiscal years plus the six -month transition period. A Represents the six -month period from July 1. 1999 through December 31. 1999. I Source: "Alaska Taxable ", State of Alaska Kenai peninsula Borough Certified Assessment Roll 1 121 CITY OF SEWARD property Tax Rates Direct and Overlapping G veanments Last Ten Fiscal Yews per $1.000 of Assessed Value) i FlKal CIU lemma (1) 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 2001 3.12 7.10 10.22 t) Includes Kenai F'enimwla BarouO and K=w Pg@bmk CON ty Cdkie. Source: City of Sewaed Kenai Peninsula Borough i 122 Table 6 MY OF SEWARD Special Assessment Billings and Collections Last Ten Fiscal Periods * 2001 $24,372 $49,652 $260,530 1 Effective July 1. 1999, the City of Seward changed 6om a fiscal yea 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 pre-payments, current payments. and past due payments. 123 Special Special Total Fiscal Assessment Assessment Outstanding year- 1992 Billines 26,190 Collccdow M 6,505 Assessmeptl 263,978 1993 27,618 32,573 249,385 1994 27,618 19,795 265,103 1995 21,759 2,241 285,889 1996 18,368 524 272,190 1997 1,111 2,175 94,395 1998 1,273 3,182 91,127 1999 1,106 3,138 87,989 1999 0 0 85,357 2000 32,102 47,246 395,539 2001 $24,372 $49,652 $260,530 1 Effective July 1. 1999, the City of Seward changed 6om a fiscal yea 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 pre-payments, current payments. and past due payments. 123 crrY OF SEWARD Ratio of Net Genend Obligation Bonded Debt , To Assessed Value And Net General Obligation Bonded Debt Per Capita Last Ten Fiscal Periods * Fbod YML 1992 2.878 141,039 1993 2.886 142,161 1994 2.965 155.396 1995 2,917 178934 1996 2,891 164,148 1997 2,9% 158.795 1998 3.028 155,450 1999 3,010 159,770 1999 3.010 171,627 2000 2,830 210.345 2001 3,040 210,741 Gnm Debt Rath at Nd Net Ballad Payable grout Net Banded Debt Bonded Debt 3)# Enu rpuime Bonded Deb to Asaeraad Debt Per CMIIa- 10563 8,351 2,212 yabw-_ 1.57% 769 10,039 7.886 2,153 1 .51% 746 10.249 7930 2.319 1.49% 782 59549 7.310 2,239 125% 768 8.788 6,636 2,152 131% 744 15,600 6.037 9,563 6.02% 3,192 14.Sb5 5.398 9.467 6.09% 3.126 13910 4.724 9,186 5.75% 3,052 13025 4,157 8,867 5.17% 2946 11.935 3.421 8,513 4.05% 3,008 10.775 2.651 8,123 3.95% 2,672 I Effective July 1. 1999. the City of Seward changed from a fiscal year ending June 30, to a calendar year ending Dooember 31. ' This schodulc includes ten full fiscal years plus the six -month transition Period. Represents the six -math period from July 1. 1999 through Dweanber 31. 1999. 4 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 WZ-1 Table 8 CITY OF SEWARD Lagal Debt Margm De=ber 31, 2001 t INo debt limit mandated by law. Ll U 11 125 JA&0 CITY OF SEWARD Computation of rh oct And Overlapping Bonded Debt Gencrai Obligation Bonds December 3i 2001 Net Genoa! Oblip 6m p tap Amount Bonded Debt Applicable To Applicable To iudwidiu Our_ City oi - CUT Of Diract: City of Seward $8,123.273 (1) 100.00% $8,123,273 Overlapping: Kenai Peninsula Borough 14-329M (3) 6.84% (2) 980,104 Total WAVOM 1 1) Excluding genaai obligation bonds mp xW in die EntaVise Funds. QfPrnC nsu4 2) Based of the Kenai Borough ($3AV,335.94 Source: `M Alaska T xaW. Stme of Ala" p-40 and Kenai Peninsula Banugh certified maim and supplemental tan inks. 3) Source: Kenai Peninsula BovouO finance depstn=L 1 1 126 CITY OF SEWARD Ratio of Annual Debt SeMce Expenditures For General Obligation Debt (1) to Total General Fund Expenditures Last Ten Fiscal Periods * FIKal ISAL 1992 1993 1994 1995 1996 1997 1998 1999 1999 2000 2001 Mac" 143,563 180,448 199,898 143,511 139,216 99.187 115,275 281,475 318,240 507,340 390.005 nom 201,701 187,061 143,804 139,237 130,985 121,629 163,231 510,792 251,818 333,657 467,974 Total Debt Service (1) 345,265 367,509 343,702 282,748 270,201 220,816 278,506 792,267 570,058 840,997 857,979 Total General 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 6,779,450 Ratio of Debt Serrke to General 6.62% 7.10% 6.83% 5.54% 5.26% 3.83% 4.81% 13.34% 16.48% 13.26% 12.66% 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 final years plus the six -month transition period. Represents the six -month period hum July 1. 1999 through December 31, 1999. 1) GeneW obligation debt reported in the Enterprise Funds, with government commitlmentt, have been excluded. 2) Total General Expenditures includes General Fund and Debt Service Fund. 1 127 1 CITY OF SEWARD Revenue Bond Cowerp Electric Enterprise Fund Last Ten Fiscal Periods (5) ' 1) Total mvmim including interest in lips of , 2) Total operating a wfial exclusive o[ depro¢b on payment 3) twludes principal and Mtermt of revam bonds only. Excludes geraal obligation bond` repm"d in due Electric Enterprise Fund. 4) Revenue bond Wmaent requires Net Revenue Available for Debt Service be at last 1.30 times the amount ' of the total annual debt savica reguinaneat. 5) No Electric Enterprise Fund revenue bonds prior to 1995. 128 Net Revenge Debt pucal Gros Operating AvaU" for xw- ROMHAta KUUMM DeM SWAN him" Imam 1995 5.92715 3.538.065 2,389,880 1996 5.830.903 3.624,001 2"6.902 184.435 184,435 11.97 1997 5,955,699 3,604,036 2.351.663 5184,435 184„435 12.75 1998 6, 428,124 4,064.418 2.363.706 50,000 184A35 234.435 10.08 1999 6,720,313 3.644.529 3,075.784 75,000 180,760 255,760 12.03 2000 6 ,704,860 4,171.110 2.533.750 100.000 171,573 271.573 9.33 2001 6,937.500 4.479.710 2,457.730 130,000 163,120 293.120 38 1) Total mvmim including interest in lips of , 2) Total operating a wfial exclusive o[ depro¢b on payment 3) twludes principal and Mtermt of revam bonds only. Excludes geraal obligation bond` repm"d in due Electric Enterprise Fund. 4) Revenue bond Wmaent requires Net Revenue Available for Debt Service be at last 1.30 times the amount ' of the total annual debt savica reguinaneat. 5) No Electric Enterprise Fund revenue bonds prior to 1995. 128 ITable ll CITY OF SEWARD Property Value, Construction and Bank Deposits 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 tea full fiscal years plus the six -monde transition period. Represents the six -month period from July 1. 1999 through December 31, 1999. I ( 1) Estimated actual value from Table 4 Source: Kenai Peninsula Borough - Quarterly Report of Economic Indicators for December 31, 2001 1.oe:al Banks - First National Bank of AnchofW and Wells Fargo 129 i Commercial Residential Construction Construction Total Real Number Number Fiscal Property' of of Bank jLUr VaIlle ML perdu Value 1'gn Denoaia_ 1992 100,667,900 21 842,685 20 620,425 32,518,000 1993 98,261,300 16 328,462 34 1,504,173 27,808,000 1994 111,378,100 20 3,120 ,673 24 384,400 28,409,000 1995 111,294 400 27 31,539,700 28 746,600 35,186,501 1996 113,853,300 16 8,076,000 31 1,093,800 36,572,000 1997 117,443,100 29 7,770,836 41 1,513,902 38,598,136 1998 117,506,400 24 2,095,035 34 1,493,675 43,350.000 1999 114,049,300 22 5,937,950 25 1,271,900 47,116,749 A1999 124,730,000 24 1,407,699 12 719,300 42,661,000 2000 167,589,200 23 1,982,065 36 1,469,000 45,217,355 2001 172,127,800 27 1,922,767 21 794,214 46,527,000 Effective July 1, 1999, the City of Seward changed from a fiscal year ending June 30, to a calendar year ending December 31. This schedule includes tea full fiscal years plus the six -monde transition period. Represents the six -month period from July 1. 1999 through December 31, 1999. I ( 1) Estimated actual value from Table 4 Source: Kenai Peninsula Borough - Quarterly Report of Economic Indicators for December 31, 2001 1.oe:al Banks - First National Bank of AnchofW and Wells Fargo 129 i 1} Includes real and personal property based na 2001 tax rolls. Source: Kenai Peninsula Borough - Assessing Departcnt , 2) ToW assessed valuation (real and personal property) is $210, 741,079. Scwree: Kenai Peninwla Baa+uu h. 130 jAle 12 CITY OF SEWARD Principal Taxpayers December 31, 2001 Percent or FY01 Total Assessed Assessed T YnaIeer - Valuation[l) YWHAWRO CIRI Alaska Tourism Co. Tourism 10,994,941 5.2% Izirer Enterprises - Steve, Carol, James. Winifred Leirer Real Estate/Leasing 8,183.200 3.9% Icicle Seafoods Seafood Processing 8,028,0% 3.8% Seward Terminal, Inc. Coal Export 7,327,721 3.5% Shoreside Petroleum, Inc. - Kurt and Diana Lindsey Petroleum Products 4,244,304 2.0% Tel Alaska Communications 3,797,961 1.8% Hotel Edgewater Hotei/Gift Shop 3,211,800 1.5% Afogiiak Logging -Albert Schafer Construction/ Logging 3,155,085 1.5% Breeze Inn Motel - Juris N indenberg Motel / Restaurant 2,880,500 1.4% New Seward HotOUNew Seward Saloon 2,617,089 1.2% Brad Snowden and Virginia Bradley Hotel/Saloon 1} Includes real and personal property based na 2001 tax rolls. Source: Kenai Peninsula Borough - Assessing Departcnt , 2) ToW assessed valuation (real and personal property) is $210, 741,079. Scwree: Kenai Peninwla Baa+uu h. 130 City of Seward facilities and services: TI&Ie 13 CITY OF SEWARD 43.64 233 MIS US STATISTICS 58 December 31 2041 Date of incorporation June 1,1912 Home Rule Class Form of Government I 28,740 Number of employees 63 Non - Exempt 15 Exempt 22 Area, Square Miles 2,860 Population 1,931 Qualified Voters 419 City of Seward facilities and services: Miles of streets 43.64 233 Number of street lights 58 Building Permits Issued Recreation and Culture: 17 Number of Parks & Playgrounds Number of Libraries I 28,740NumberofVolumes Fire Protection 2 Number of Stations 2NumberofPaidFirefightersandOfficen Number of Volunteers 30 216 Number of Calls Answered 419 Fire Rating (ISO) Police Protection I Number of Stations 9 Number of Officers Number of law violations: 483 Physical arrrsts 1.186 Traffic violations 146 Parking violations Sewerage System: 2 Number of treatment plants 856 Number of service connections 870.000Dailyaveragetreatmentingallons1Maximumdailycapacityoftreatmentplantingallons 11= 1000 Water System: 876 Number of service connections Number of fire hydrants 185 1,300,000 Daily average consumption in gallons Maximum daily capacity of plant in gallons Electric Distribution System: 5,500,000 2,458 Number of service connections 55 Miles of distribution lines 131 MY OF SEWARD MISCELLANEOUS STAMMCS December 31 2001 Miles of transmission lines Number of sub - stations Total number of kilowatt sakes Harbor and Port Operations: Registered vessels Number on waiting list for boat slips Number of boat lifts General cargo to mnage Fish product tonnage Petroleum (gallons) Facilities and services not included in the reporting entity: Education Elementary School Number of Students Enrolled Number of Teachers Jr/Sr High School Number of Students Enrolled Number of Teachers Alaska Vocational Technical Center Number of Students Served Annually Number of Teachers Hospital Providence Seward Medical Center. Number of patient beds (4 Primary care; 2 swing beds) Number of empioyees: Non - Exempt Exempt 42 3 54,940,719 4,000 327 613 1,831 13,502 2,610,537 386 16 410 29 1,721 31 r. 50 1 1 11 132 1 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 giant prngmm& This section includes any applicable schedules of findings and questioned vows, schedules of prior audit findings, and corrective action plans. L MIKUNDA, COTTRELL & CO. A Professional Corporation CERTIFIED PUBLIC ACCOUNTANTS a CONSULTANTS 3601 "C" Street, Suite 600 • Anchorage, Alaska 99503 907) 278 -8878, Fax (907) 278 -5779 www.incc- cpa.corn Independent Auditor's Report on Compliance any on internal Control Over i:irlancial Renar k_g 4n. Audit of Financial Stn is Performed in nt Aucking 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, 2001, and have issued our report thereon dated March 27, 2002. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Co n Fance As part of obtaining reasonable assurance about whether City of Seward's financial statements are free of material rnisstatermt, we performed tests of its compliance with certain provisions of laws, rephoons, contracts and grants, noncompliance with which could have a direct and material effect on the detenninatiorl 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 arc 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 an 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 nu#= in the internal control over financial reporting that might be material w . 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 fimctions. 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 thew specified parties. C. e. 4e &. 1 March 27, 2002 McGLADREY NETWORK 133 An I„ andenty ;,,,.,, r; -; ; Dices: Anchorage, Bethel, Kenai & SewardrWofiAwxieSafvcaSTt,o,gn RSM lrlematiCr al MIKUNDA, COTTRELL & CO. A Professional CorpvraUOn , CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS 3601 "C" Street, Suite 604 * Anchorage, Alaska 99543 ' 907) 278 -8878, Fax (907) 278 -5779 www.n=-cga.com 1 Ind t Auditoes ESMrt on Co li with R e to—Each- ' Proom and on In trol Over Comglianco.in AgmUm milh OMB.Cioft A-133 Honorable Mayor and City Council ' City of Seward, Alaska C =liance 1 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, 2001. 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 auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A- 133, Audits of States, Local 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, 2001. 134 WE McGLADREY NETWORK a c r Offces:.Anchoracge, Bethel, Kenai & Sewar WorV+ntle Sarv cea Through RSM In18Mf 0nal 1 Honorable Mayor and City Council City of Seward, Alaska interrmal Control OverConli en 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 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 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 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 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. ezeaze 4, March 27, 2002 1 135 CITY OF SEWARD Schedule of Findings and Questioned Costs Year Ended December 31, 2001 ' U ILTRESULT I. Summary of Auditor's Results: Financial Statements: Type of auditor's report issued: Unqualified Internal control over financial reporting: Material weaknesses identified? yes _a. no identified thatReportableconditions are not considered to be material weaknesses? Yes -z-now reponed Noncompliance material to financial i statements noted? Yes _IL no Federal Awards: Internal control over major programs: Material weaknesses identified? Ya x no Reportable conditions identified that are not considered to be material weaknesses? m __)L.none reported 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? yes x no Major program: Agencv CFDA Nurrib r P Department of Agriculture 10.904 NRCS Flood Mitigation Federal Emergency Management Agency 83.519 Japanese Crack Levy Dollar threshold used to distinguish between Type A and B programs 300,000 Low -risk auditee No H. Financial Statement Findings None noted III. Federal Awards Findings and Questioned Costs None noted 136 1 CITY OF SEWARD Summary Schedule of Prior Audit Findings Year Ended December 31, 2001 1 There were no prior year audit findings. 1 137 CITY OF SEWARD Corrective Action Plan Year Ended December 31, 2001 There arc no current year findings; therefore no corrective action plan is required. 1 1 138 MIKUNDA, COTTRELL & CO. A Professional Co porrt&n CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS 3601 "C" Street, Suite 600 a Anchorage, Alaska 99503 907) 278 -8878, Fax (907) 278-5779 www.mcc -cpa.com Ind dent Auditor's R rt on Com fiance and on Internal Control Over Financial R Based on an Audit of Financial Statements Performed in Accordance with Government Auditin St rds 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, 2001, and have issued our report thereon dated March 27, 2002. We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 of cd 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 rtin 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 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 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 27, 2002 139 McGLADREY NETWORK Ar Inde,,enoemly Owned Men*mr l-PO W-AMW je Sr- - +.:b5 I nl ,n,np -RSM klzf r',dl 00al Orces: Anchorage, Bethel. Kenai & Seward MIKUNDA, COTTRELL & CO. A P"ftsional Corporation ' CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS 3601 "C" Street, Suite 600 • Anchorage, Alaska 99503 , 907) 278 -8878, Fax (907) 278 -5779 www.mcc- cpa.com Ind dent Auditor's R .port on Compliance with R uirements Aolicable to Each ' ProMM and on Internal Control Over Co liance in Accordance with the State o Alaska Audit Guide and Compliance SiMlement for State Sihgle Audits Honorable Mayor and City Council ' City of Seward, Alaska om R ce , 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, 2001. City of Seward's major state prograrns 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 auditing standards generally accepted in ttheUnitedStatesofAmerica; 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, 2001. 1 McGLADREY NETWORK An inde,xrrn WA,, 6,.r AM6; r-- e; dy Worldwde Serves T4 -1 RSM Inlernawal 140 ai & SewalOffices: Anchorage, Bethel, Ken 1 Honorable Mayor and City Council City of Seward, Alaska Internal Control Over Com fiance 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 ofAlaska 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 mng c ent, 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. 1 March 27, 2002 1 141 THIS PAGE LEFT BLANK INTENTIONALLY