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For The Fiscal Year Ending June 30, 1986 Is
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COMPREHENSIVE ANNUAL
FINANCIAL REPORT
OF THE
CITY OF SEWARD, ALASKA
Year Ended June 30, 1986
Harry E. Gieseler
Mayor
Ronald A. Garzini
City Manager
Prepared By
Department of Finance
Robert Peirson
Comptroller
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PART I
1 INTRODUCTORY SECTION
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF SEWARD, ALASKA
For The Fiscal Year Ended June 30, 1986
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . 2 -5
Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . 6 -16
Certificate of Conformance in Financial Reporting . . . . . . . . . . 17
Organization Chart . . . . . . . . . . . . . . . . . . . . . . . . . 18
Organization and Principal City Officials . . . . . . . . . . . . . 19
FINANCIAL SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Auditors' Report . . . . . . . . . . . . . . . . . . . . . . . . . 21 -22
General Purpose Financial Statements . . . . . . . . . . . . . . . 23
Combined Balance Sheet - All Fund Types and Account Groups . . 24 -25
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types . . . . . . . 26 -27
Statement of Revenues, Expenditures and Changes in Fund
Balance, Budget and Actual - General Fund . . . . . . . . . 28
Combined Statement of Revenues, Expenses and Changes
in Retained Earnings, All Proprietary Fund Types -
Enterprise Funds . . . . . . . . . . . . . . . . . . . . . . 29
Combined Statement of Changes in Financial Position -
A1l Proprietary Fund Types - Enterprise Funds . . . . . . . 30
Notes to Financial Statements . . . . . . . . . . . . . . . . 31 -41
Supplementary Information
Attachment P Audits
Auditors' Comments on Internal Control Made as Part of
an Attachment P Audit . . . . . . . . . . . . . . . . . . . . . 42 -43
Auditors' Comments on Compliance for Attachment P Audits . . . . 44
Findings of Noncompliance - Federal Revenue Sharing . . . . . . . 45
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF SEWARD, ALASKA.
For The Fiscal Year Ended June 30, 1986
TABLE OF CONTENTS (CON'T.)
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Page
Schedule of Active Awards - Federal Revenue Sharing . . . . . 46
Findings of Noncompliance - State Awards . . . . . . . . . . 47
Schedule of Active Awards - State . . . . . . . . . . . . . . 48 -49
Financial Statements of Individual Funds
Statements and Schedules . . . . . . . . . . . . . . . . . . 50
General Fund . . . . . . . . . . . . . . . . . . . . . . . 51
Balance Sheet . . . . . . . . . . . . . . . . . . . . 52
Statement of Revenues, Expenditures and Changes
in Fund Balance, Budget and Actual . . . . . . . . 53 -56
Capital Projects Funds . . . . . . . . . . . . ... . . . . . . 57 -58
Combining Balance Sheets . . . . . . . . . . . . . . . . . 59 -60
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances . . . . . . . . . . . . . . 61 -62
Project to Date - Schedule of Construction Projects . . . 63 -64
Marine Industrial Park
Combining Balance Sheet . . . . . . . . . . . . . . . 65 -66
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances . . . . . . . . . . . 67 -68
Project to Date - Schedule of Construction
Projects . . . . . . . . . . . . . . . . . . . . . 69 -70
Special Assessment Funds . . . . . . . . . . . . . . . . . . . 71
Combining Balance Sheet . . . . . . . . . . . . . . . . . 72
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances . . . . . . . . . . . . . . 73
Enterprise Funds - Water /Sewer, Electric, Harbor and
Hospital Funds . . . . . . . . . . . . . . . . . . . . . . . 74
Combining Balance Sheet - All Proprietary Fund Types . . . 75 -76
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF SEWARD, ALASKA
For The Fiscal Year Ended June 30, 1986
TABLE OF CONTENTS (CON'T.)
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings . . . . . . . . . . . . . . . .
Combining Statement of Changes in Financial
Position - All Enterprise Funds . . . . . . . . . . . . . .
General Fixed Assets Groups of Accounts . . . . . . . . . . . . . .
Schedule of General Fixed Assets by Sources . . . . . . . . .
Schedule of Changes in General Fixed Assets -
Equipment, By Function and Activity . . . . . . . . . . . .
General Long -term Debt Group of Accounts . . . . . . . . . . . . .
Schedule of General Long -term Debt . . . . . . . . . . . . . .
Schedule of Bonded Indebtedness - All Funds . . . . . . . . .
STATISTICAL SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General Fund Expenditures by Function - Last Ten Fiscal Years . . . . .
General Fund Revenues by Source - Last Ten Fiscal Years . . . . . . . .
Property Tax Levies and Collections - Last Ten Fiscal Years . . . . .
Assessed and Estimated Actual Value of Taxable Property -
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . .
Property Tax Rates - All Overlapping Governments -
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . .
Special Assessment Collections - Since May 29, 1979 (Inception) . . . .
Ratio of Net General Bonded Debt - Last Ten Fiscal Years . . . . . . . .
Page
77 -78
79 -80
81
82
83
84
85
86 -87
88
89
90 -91
92 -93
94 -95
96
97
98 -99
Legal Debt Margin . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Computation of Direct and Overlapping Debt . . . . . . . . . . . . . . . 101
Ratio of Annual Debt Service Expenditures - Last Ten Fiscal Years . . . 102
Demographic Statistics - Last Ten Fiscal Years . . . . . . . . . . . . . 103 -104
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF SEWARD, ALASKA
For The Fiscal Year Ended June 30, 1986
TABLE OF CONTENTS (CON'T.)
Page I
Property Value, Construction, and Bank Deposits -
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . 105
Local Unemployment Rate . . . . . . . . . . . . . . . . . . . . . . . . 106
Principal Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Miscellaneous Statistical Data . . . . . . . . . . . . . . . . . . . . . 108
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CITY OF SEWARD
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p_o. BOX 167
SEWARD, ALASKA 99664
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Main Office (907) 224 -3331
Police (907) 224 -3338
Harbor (907) 224 -3138
Fire (907) 224 -3445
Telecopier (907) 224 -3248
November 18, 1986
The Honorable Mayor Harry E. Gieseler
and Members of the City Council
City of Seward
P.O. Sox 167
Seward, Alaska 99664
Dear Mayor Gieseler and Council:
The Comprehensive Annual Financial Report otsuhmittedfherewith.
Alaska for the fiscal year ended June 30, 1986, s
This report was prepared by the City's Finance
Department. Responsibility
for both the accuracy of the presented data and the comp
fairness of the presentation, including a
is c
ldislosur s, rests
materialhe
City. We believe the data,
presented,
aspects. It is presented in a manner designed to fairly set forth the
of ti
financial position and the results onAilodisclosuresanecessarydto
y
the financial activity of it various funds
enable the reader to gain the maximum understanding of the City's financial
activity have been included.
Sco a of Presentation of Financial Statements
This report covers all funds and financial transactions of the City-
The report is divided into three sections:
Introductory
for
Cit officials, gcontainsalistofprincipalCity begins withg
the City, and a Table of Contents; the Financial
provideslan overview of the
the general purpose financial statements and p
City's financial position and operating
results, followed by combining
statements by fund type and other schedules that provide additional
detailed information
ection
rele
inccludesla
purpose
number
ofnstatisticaletables
and the satistiresentvarious financial, economic, social and demographic
and charts that pp
data for the City for the last ten years.
For financial reporting
purposes, the City includes all funds and
account groups. The City provides a full range of municipal services that
voice and fire, sanitation,
health, culture and recreation,
public
include p
general
improvements, planning and
general administrative
services. The g
fund is supported
ri
property
revenues
g
which are not restricted to a p water, sewer, and
also provides utility
services, including
funds,
through user
refuse. These services are
enterprise funds, supported
The City also
maintains an enterprise
fund
charges for operating
expenses.
to account for the operations of all harbor and port related actvities. Long -term borrowings
and earnings provide for capital outlay.
All operating and management functions for the municipal health powershavebeendelegatedtoSewardGeneralHospitalwhichisoperatedbytheCommunityHospitalBoard,
whose members are appointed by The City Council. The City performs
accounting functions for the hospital under a contractualfeearrangement. The City Council exercises budgetary oversight overhospitaloperations.
The financial statements of Seward General Hospitalandtheauditor's report thereon are included in this report.
The Re ortin Entit and Its Services
Seward is located on Resurrection Ba y, a year- around, ice -free, deepwaterareaofSouthcentralAlaska. On the eastern side of the KenaiPeninsula, 128 highway miles south of Anchorage, the City has yearoverlandaccessibility. By air, Anchorage is 35 minutes, Juneau three
hours, and Seattle four hours,
Situated on Resurrection Bay, Seward is strategically located foreasy, economical access to Southcentral, Interior and Northern regions ofAlaska. Ideally located for maritime industrial development and thegrowingPacificRimTrade, Seward is close to major shipping lanes, and isalsothesouthern,
tidewater terminus of the Alaska Railroad which connectstheporttoAnchorageandtheinteriorofAlaska.
Against the background of declining State revenues and capital grants, Seward continues to invest in the future. Completion of the State ofAlaska's first maximum security prison is expected on schedule, in
November, 1987. In October, 1985, the City issued $45,440,000 innon - recourse Certificates of Lease Participation. The proceeds, along with19,188,507 in State of Alaska equity, construction of the Spring Creek Correctional nCenter. The completed
Seward to finance
facility will be leased from Seward by the State of Alaska under the termsOfalong -term lease agreement signed in October, 1985. will be repaid by the annual lease a appropriated
The certificates
Alasklegislature. The 320 bed facility willedirectlyaddoverbonehhundredafift yfulltimejobstotheSewardeconomlocaleconomy• These jobs will greatly enhance they, providing much needed stability to the primarily seasonaleconomyoftheSewardarea. The financing issue is insured bStatesFidelityandGuarantee (USF&G) and was rated AAA b o
UnitedService.
y Moody's Investor
The City is
continuing to develop and market a major Marine IndustrialCenter, designed to provide ship repairs and new vessel construction, The40millionfacilitybecameoperationalin1984. weight ton synchrolift, capable of lifting vessels uph300 feetsindleng h, has provided access to dry dock and repair facilities to over fifty vesselssinceitbeganoperation. The City beganofavesseltransfersystemwhich, when completedginn1988, will
the1986for
capacity of the facility, The transfer facility will be constructed with acombinationoffederal, state, and local monies.
Planning continued in fiscal 1986 for 2 major capital improvements, a
new 1 thousand slip boat harbor and a new 26 bed hospital. Planning andconstructionofadditionalinfra - structure and support facilities combinetoenhancetheCity's location and natural resources.
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City Governmental Organization
The City was incorporated on June 1, 1912 and became a first class
City under the Alaska Statute's home rule provisions upon the adoption of
the City Charter by a referendum vote of the people on January 5, 1960.
The form of government established by the Charter is the Council- Manager
plan. The Council exercises the legislative power of the City and
determines all matters of policy. The Council is composed of a Mayor and
six Councilmembers who are elected at large. Councilmembers and the Mayor
each serve a term of two years. The City Manager is the head of the
administrative branch of the City Government and is responsible to the
Council for the proper handling of all affairs relating to the City.
The office of the City Clerk is subordinate to, and appointed by, the
Council. The City Clerk has duties in connection with the keeping of the
public records and City elections.
The City Attorney is appointed by the Council. All other officers and
employees of the City are appointed by the City Manager. Appointments to
the following positions are made by the City Manager with approval of the
Council:
City Engineer
Chief of Police
Comptroller
Fire Chief
Accounting System and Budgetary Control
The City's financial statements for governmental funds have been
prepared on the modified accrual basis of accounting in conformity with
generally accepted accounting principles. Revenues on this basis are
recognized when measurable and available to finance current expenditures;
expenditures are recognized when goods and services are received and
liabilities are due and payable at year end. The City's Enterprise Funds
are accounted for on the accrual basis. Revenues on the accrual basis are
recognized when earned; expenses are recognized when incurred. Inventories
are stated at the lower of cost or market. Cost is generally determined by
the first -in, first -out method.
In developing and evaluating the City's accounting system,
consideration is given to the adequacy of internal accounting controls.
Internal accounting controls are designed to provide reasonable, but not
absolute, assurance regarding: 1) the safeguarding of assets against loss
from unauthorized use or disposition; and 2) the reliability of financial
records for preparing financial statements and maintaining accountability
for assets. The concept of reasonable assurances recognizes that : 1) the
cost of a control should not exceed the benefits likely to be derived; and
2) the evaluation of costs and benefits requires estimates and judgments by
management.
All evaluations of the City's internal controls occur within the above
framework. We believe that the City's internal accounting controls
adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions.
The City adopts fiscal year budgets for all governmental funds
except the Debt Service Fund. Debt Service requirements are budgeted as
operating transfers from the General Fund to the Debt Service fund. BudgetamendmentsrequireresolutionoftheCouncil. All budgets are controlledonalineitembasis. Estimated purchase order amounts are encumberedpriortothereleaseoftheordertothevendor. When an encumbranceexceedsavailableappropriationauthority, the order is delayed until thebudgetisamended. Open encumbrances lapse at year end and must be
reappropriated in the following year. Therefore, encumbrances are notreportedasareservationoffundbalanceatJune30, 1986.
The Council adopts the budget for the governmental funds on an annualbasis. The Council may amend the budget by resolution during the year.
The City authorizes expenditure levels of appropriations by type ofservice. Ordinance requirements provide that budgetary guidelines are notrestrictiveandmaybereallocatedbyeithertheCityManagerortheCouncil. However, the total appropriation level may not be exceeded. During the year ended June 30, 1986, General fund expenditures exceededamountsappropriatedforsomeservices, but did not exceed the total amountappropriatedoractualrevenues.
General Governmental Functions
General governmental functions are accounted for in the General Fund. Revenues for general governmental functions totaled $5,417,479 in thefiscalyearendedJune30, 1986, an increase of $456,870 (9.2%) over 1985. The amount of revenue from major sources and the increase or decrease over1985isshowninthefollowingsummary;
Dollar Percent
Increase Increase
Revenue Sources A
Percent (Decrease) (Decrease)
Amounts Of Total Over 1985 Over 1985
Taxes
Licenses and permits
799,563
187,393
14.8 201,580 33.7
Intergovernmental Revenue 798,506
3.5
24.7
124,
528361,528)
197.6
Charges for. Services
Fines and forfeits
3,422,181 63.1 869,857
31.2)
34.1
Miscellaneous revenue
9,152
200.684
2
3.7
6 970
370.483)
43.2)
64.9
5,417,479 10% 456,870 9.2
The revenue increase was due primarily to a settlement of a majorconstructionrelatedclaim, from which the City received in excess of1,400,000. This non - recurring revenue offset continued declines in statesharedrevenuesandrecoveriesfromcapitalprojects. The City's taxrevenuehowever, was up 33.7% over 1985. The fact that growth in taxrevenues ( +33.7$) did not keep pace with the growth in assessed values65.4 %) was due primarily to a tax billing error. This costly error onthepartoftheKenaiPeninsulaBoroughresultedinanunder - collection ofpersonalpropertytaxbyjustover $100,000.
The increase in tax revenues was due to a continued, steady growth inassessedvalues. Combined real and personal property values climbed 65.4% over 1985. Approximately half of this increase was due to the
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temporary storage of oil related property within the city limits. Although
the tax revenues derived from oil property are not considered by management
to be "recurring ", they are providing a small cushion as the City adjusts
to the expected declines in state aid. Seward's assessed values, net of
oil related property, have doubled in the last five years. Continued
growth in assessed values is expected.
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Property taxes attach as an enforceable lien on property as of January
1. Taxes are levied on July 1, and are payable in two installments on
August 15 and November 15. The Kenai Peninsula Borough bills and collects
all property taxes on behalf of the City. City property tax revenues are
recognized when levied to the extent that they result in current
receivables. Assessed valuations of $134,543,500 represented an increase
of 65.4% from 1985.
A sales tax is levied at the rate of 1 %. Sales tax revenues are
collected by the Kenai Peninsula Borough on behalf of the City. Sales tax
revenues are recognized when received by the Borough. Sales tax receipts
totaled $233,844, a decrease of $6,981 (2.9 %) from 1985. Although sales
tax revenues were slightly lower, this was due to differences in tax
collections, rather than changes in the level of commercial activity.
Taxable sales reported in 1986 were up 7.7% over the 1985 level.
Expenditures for general governmental purposes totaled $3,906,320 in
fiscal year 1986, a decrease of 172,409 (4.2 %) from 1985. Increases
decreases) in levels of expenditures for major functions of the City from
the preceding year are shown in the following tabulations:
3,906,320 100.0% 172 409) 64.9
The General Fund year -end fund balance totaled $3,669,441 an increase
of $1,535,782 over 1985.
Debt Administration
The ratio of net bonded debt to assessed
bonded debt per capita are useful indicators
management, citizens, and investors.
Amount
Net Direct Bonded Debt $7,258,000
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valuation and the amount of
of the City's debt position to
Ratio of Net
Bonded Debt to
Dollar Percent
100% of Per
Increase Increase
5.39% 3,165
Percent Decrease) Decrease)
Amount of Total over 1985 over 1985
General Government 1,475,315 37.8% 165,942) 10.1)%
Public Safety 1,688,989 43.2 94,708 5.9
Public Works 542,857 13.9 43,451) 7.4)
Parks and Recreation 199.159 5.1 57.724) 2 2._
3,906,320 100.0% 172 409) 64.9
The General Fund year -end fund balance totaled $3,669,441 an increase
of $1,535,782 over 1985.
Debt Administration
The ratio of net bonded debt to assessed
bonded debt per capita are useful indicators
management, citizens, and investors.
Amount
Net Direct Bonded Debt $7,258,000
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valuation and the amount of
of the City's debt position to
Ratio of Net
Bonded Debt to
Assessed Value
100% of Per
Market Value) Capita
5.39% 3,165
General Obligation bonds are carried in the General Long -Term Debt groupofaccountsorintherespectiveEnterprisefundswhichbenefitedfromthe
proceeds of the issue.
Bonds payable at June 30, 1986 7 258 000 1371.000 7 395 000
General Obligation Bonds of $7,258,000 have been recorded in theEnterprisefundswhichbenefitedfromproceedsofsuchbondsissues. The1965StreetImprovementSerialBondswerefullyretiredinfiscal1986.
The annual requirements to amortize all debt outstanding as of June30, 1986, including interest payments of $8,084,179, are as follows:
Fiscal
The following is a summary of bond transactions of the City for theyearendedJune30, 1986:
Revenue
Ending Bonds Bonds
General
1987 1,016,015 77,535 1,093,550
Obligation Revenue
70,685 1,058,595
1990
Bonds Bonds Total
Bonds payable at July 1, 1985 7,479,000 203,000 7,682,000Bondsissued
879,360
1997 -2001 3,777,940
Bonds retired 221.000 66.000 287.000
Bonds payable at June 30, 1986 7 258 000 1371.000 7 395 000
General Obligation Bonds of $7,258,000 have been recorded in theEnterprisefundswhichbenefitedfromproceedsofsuchbondsissues. The1965StreetImprovementSerialBondswerefullyretiredinfiscal1986.
The annual requirements to amortize all debt outstanding as of June30, 1986, including interest payments of $8,084,179, are as follows:
Fiscal General Special
Years Obligation Revenue
Ending Bonds Bonds Total
1987 1,016,015 77,535 1,093,5501988
1989
987,910 70,685 1,058,595
1990
986,350 986,350
1991
987,840 987,840
1992 -1996
879,360
4,359,926
879,360
1997 -2001 3,777,940
4,359,926
3,777,9402002 -2005 2 335 618 2.335,618
15,330.9_59 148,220 L15,479,179
The City's various bonds agreements contain covenants requiringcertainearningsandsinkingfundprovisions. The City has either met orintendstotransferamountsfromotherfundsinordertomeetthese
requirements.
Since June 30, 1986, the city has refunded the 1984 Series A, General
Obligation Bonds which were issued to finance improvements in the City'selectricaltransmissionsystem.
Cash Management
The City has combined all its funds into a "Central Treasury ".
The Central Treasury concept permits investment of combined funds, and
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earnings thereon have been reported in the fund which supplied the
resources for investment.
The investment and collateralization of City funds is governed by
Section 10 -21 of the Seward Code of Ordinances. The ordinance clear
identifies safety as the primary concern in the selection and management of
the City's investments. Full collateralization of all uninsured investment
balances is required with the collateral held by a third party under the
terms of separate Security and Tri -party Escrow agreements. Collateral is
marked to market" weekly.
Total City cash investments at June 30, 1986 were:
Cash $3,481,968
Certificates of Deposit 86.000
3,567,968
Cash temporarily idle during the year was invested in short -term time
deposits and repurchase agreements. The amount of interest earned in the
fiscal year ended June 30, 1986, was $385,914. This amount was $108,984
less than the interest earned in the fiscal year ended June 30, 1985. The
reduced interest earnings were the result of both reduced investment
balances and lower prevailing interest rates. The reduced balances
available for investment were the direct result of reduced capital project
grants from the state.
Capital Projects
In fiscal year 1986, the City substantially completed a new 115 KV
electric transmission line which will be used to supply virtually all of
the municipal utility's purchased power. The new transmission line
replaces an existing 24 KV line which was unable to efficiently meet the
City's growing demands for power. The $15,000,000 project is being
financed with $10,000,000 of State of Alaska grant monies and $5,000,000 of
City of Seward General Obligation Bonds. The new line will supply power
adequate to support all of the activities within the utility's service area
including the coal export facility, the Marine Industrial Center, and the
Spring Creek Correctional Center.
The City is involved in various construction projects related to the
development of the Seward Marine Industrial Center at the 4th of July
Creek area on the east shore of Resurrection Bay. Substantially all of the
expenditures are being reimbursed through various grants by the State of
Alaska.
Amounts received or receivable from grantor agencies are subject to
audit and adjustment by the grantor agencies. Any disallowed claims,
including amounts already collected, would become a liability of the
General or other applicable funds.
The City is party to several civil actions at June 30, 1986. The
amounts of potential losses, if any, are not material in the judgment of
the City officials and it's legal counsel, and no loss provision has been
made in the accompanying financial statements.
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During fiscal year 1986, certain contingencies were resolved, the
outcome of which did not have a material, effect on the City's financial
statements.
General Fixed Assets
The general fixed assets of the City are those fixed assets used in
the performance of general governmental functions. Public domain
infrastructure) general fixed assets consisting of certain improvements
other than buildings, including roads, bridges, curbs, etc, are not
capitalized. Depreciation is not taken on general fixed assets.
A summary of changes in general fixed assets follows:
The City maintains detailed identifiable records of all General FixedAssets. Values of general fixed assets other than Land are recorded at
cost or the value at time of receipt by the City from a donor. Landinventorieswerecompletedin1983. Valuation was established, as near ascouldbedetermined, to the value at the time of ownership transfer from
the State or cost where acquisition was by purchase.
Fixed asset acquisitions by the Enterprise funds are capitalized at
cost. Depreciation is computed on the straight -line method over the
estimated useful lives of the assets ranging from five to thirty years.
A summary of proprietary fund type property, plant and equipment atJune30, 1986, follows:
Cost
Land $ 120,709
Buildings 4,215,138
Improvements other than
Buildings 15,547,324
Equipment 1,523,384
Construction in progress 16.390.990
37,797,545
Less accumulated depreciation _5.830.554
31,966,991
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Balance
July 1, 1985 Balance
Restated Additions Deletions June 30, 1986
Land
Buildings
19,410,851
6,527,114
549,355 742,844 19,217,362
Improvements
1,998 6,529,112
other than
buildings
Equipment
28,313,191 9,899,425 42,608 38,070,008
928.137 101.328 926 1.028.539
551 079 293 10,552,106 896,378 64,845_,021
The City maintains detailed identifiable records of all General FixedAssets. Values of general fixed assets other than Land are recorded at
cost or the value at time of receipt by the City from a donor. Landinventorieswerecompletedin1983. Valuation was established, as near ascouldbedetermined, to the value at the time of ownership transfer from
the State or cost where acquisition was by purchase.
Fixed asset acquisitions by the Enterprise funds are capitalized at
cost. Depreciation is computed on the straight -line method over the
estimated useful lives of the assets ranging from five to thirty years.
A summary of proprietary fund type property, plant and equipment atJune30, 1986, follows:
Cost
Land $ 120,709
Buildings 4,215,138
Improvements other than
Buildings 15,547,324
Equipment 1,523,384
Construction in progress 16.390.990
37,797,545
Less accumulated depreciation _5.830.554
31,966,991
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Enterprise Funds
Enterprise funds are used to account for operations that are
financed and operated in a manner similar to private business enterprises -
where the intent of City Council is that the costs (including depreciation)
of
providing services to the general public on a continuing basis be financed
or recovered primarily through user charges.
Enterprise Fund Plant in service, acquired by contributions in aid of
construction from grantor agencies, customers and others is depreciated.
The related depreciation expense is included in the determination of net
income. The annual depreciation on such contributed plant is transferred
from retained earnings to contributions in aid. Accumulated amortization
of contributions in aid represents the cumulative total of such
depreciation transfers.
Utility revenues are based on cycle billings rendered to customers
monthly. As a result of this cycle billing method, the utilities do not
accrue revenue at the end of any fiscal period for services sold but not
billed at such date.
interfund charges by the General fund for the in lieu of taxes and
administrative expenses are made in accordance with budget ordinance.
The City maintains four Enterprise Funds which provide electric,
water /sewer, hospital, and harbor services. Segment information for the
year ended June 30, 1986, was as follows:
Pension Plans
As of June 30, 1986, substantially all of the City's employees,
excluding the employees of the Electric Fund, were covered by the State of
Alaska, Public Employees Retirement System (PERS). The Public Employees'
Retirement System is a defined benefit pension plan to which policemen and
firemen contribute 5% and other employees are required to contribute 4 1/4%
of their compensation. Under the plan, the State of Alaska and all
14-
Water/
Total
Electric Sewer Harbor Hospital Enterprise
Funds
Fund Fund Fund Fund
Operating revenues 3,932,714 603,265 792,858
74,282
1,552,000
58,825
6,880,837
Depreciation expense
income(loss)
288,776
1,058,687
385,422
254,678) 46,156 348,288)
807,
807
Operating
Net income (loss) 983,735 376,196) 179,310 149,443 936,292
865,889
Contributions to funds 965,470 99,581)
Property, plant and
equipment additions 6,938,648 8,048 144,577
504,208
30,357
472,708
121,
11,039,009595 )
Working capital 769,276)
21,291,929
1,246,735)
10,669,514 1,471,315 1,203,377 34,636,155
Total assets
Bonds and other
long term
liabilities 6,522,000 817,156
8,549,102
12,000
1,404,049 1,005,049
7,351,156
23,878,741
Total fund equity 12,919,869
Pension Plans
As of June 30, 1986, substantially all of the City's employees,
excluding the employees of the Electric Fund, were covered by the State of
Alaska, Public Employees Retirement System (PERS). The Public Employees'
Retirement System is a defined benefit pension plan to which policemen and
firemen contribute 5% and other employees are required to contribute 4 1/4%
of their compensation. Under the plan, the State of Alaska and all
14-
participating political subdivisions are considered collectively to be asingleemployerandcontributetotheplanatasinglecompositeratetoprovidefornormalcoststogetherwithapastserviceratedeterminedseparatelyforeachemployer. The City's contribution rate for 1986 was13.13% of employee compensation, for a total contribution of $290,126. TheexcessoftheactuarilycomputedvalueofvestedbenefitsoverthetotalpensionfundassetsapplicabletotheCitywasasofJune30, 1985, thelatestdateforwhichanactuarialvaluationispresentlyavailable. Theassumedrateofreturnusedindeterminingtheplanbenefitsin1986was8 %. The actuarial present value of accumulated non - vested plan benefits isnotavailableasPERSisnotrequiredtoreportsuchinformationtocertaingovernmentalagenciespursuanttotheEmployeeRetirementIncomeSecurityActof1974. Unfunded accrued liabilities are being amortized over a 25Yearperiod.
Electric Fund employees are members of the International BrotherhoodOfElectricalWorkers,
which maintains its own defined contribution pensionplan. The City's contribution rate for 1986 was $3.00 per compensablehour, for a total contribution of $40,510.
Inde endent Audit
The City Charter and Section 29.35.120 of the Alaska Statutes bothrequireanannualauditofthebooksofaccount, financial records, andtransactionsofalladministrativedepartmentsof "home rule"
municipalities by a Certified Public Accountant selected by the CityCouncil. This requirement has been complied with and the auditor's reporthasbeenincludedinthisreport.
Certificate of Conformance
The Government Finance Officers Association of the United States and CanadaGFOA)
awarded a Certificate of Conformance in Financial Reporting to theCityofSeward, Alaska for its comprehensive annual financial report forthefiscalyearendedJune30, 1984.
In order to be awarded a Certificate of Conformance, a governmentalunitmustpublishaneasilyreadableandefficientlyorganizedcomprehensiveannualfinancialreport, whose contents conform to programstandards.
Such reports must satisfy both generally accepted accountingprinciplesandapplicablelegalrequirements.
A Certificate of Conformance is valid for a period of one year only. We believe our current report continues to conform to Certificate ofConformanceProgramrequirements. We have incorporated the suggestions forimprovementsprovidedbytheGFOAintheirreviewofthe1985CAFRintothisreport.
Acknowled ements
The preparation of this report could not be accomplished without theefficientanddedicatedservicesoftheentirestaffoftheFinanceDepartment. I should like to express my appreciation to all members of thedepartmentwhoassistedandcontributedtoitspreparation.
15-
I would also like to thank the members of the City Council for their
interest and support in planning and conducting the financial operations of
the City in a responsible and progressive manner.
Respectfully submitted,
Ronald A. Garzi
City Manager
Robert D. Peirson
Comptroller
17
i7
1 -16-
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of
Seward, Alaska
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 1985
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
governmental units and public employee retirement
Systems whose comprehensive annual financial
reports (CAFR's) are judged to substantially
conform to program standards.
r %N+ OSIA(FS\
I r 3 o President
Cmroeeiam y
Executive Director
17—
CITY CLERK
DEPUTY
CITY CLERK
ORGANIZATION CHART
ff
YOR
NCIL
ASSISTANT
ITY MANAGER
CITY MANAGER
SECL RET -AP=Y
TTA O —RNEY
CITY
I JPARKS AND
OLICE IjFNANCE
ECREATTON
atrol
ccaunting
Recreation
Teen Center
nimal
asbier
Project
Control Eta
Engineer
ustodian
ocessin
wilding
orrections
Inspection
MV
tility
CITY
FLIRE
ARBORMASTER
GINEER
Seward
ublic Boat
Project
Harbor
Engineer
wilding
Inspection
tility
Electric
Mana er
u Works
Supervisor
ater
Sewer
V.
18-
Harry E. Gieseler
John F. Gillespie
David L. Hilton, Sr.
Michael J. Meehan
Leslie Simutis
Robert D. Booher
Dr. Dennis M. Scholl
Ronald A. Garzini
Darryl Schaefermeyer
Linda Murphy
Robert Peirson
Everett P. Diener
CITY OF SEWARD
LIST OF PRINCIPAL OFFICIALS
Councilmembers
Administration
19-
Mayor
Councilperson
Councilperson
Councilperson
Councilperson
Councilperson
Councilperson
City Manager
Deputy City Manager
City Clerk
Comptroller
City Engineer and
Utilty Manager
IPART II
1 FINANCIAL SECTION
1
1
1 -
20-
t
Fl
LJ
1
i
I
1
ssL l
HENDRIX & ESSLINGER
Certified Public Accountants
3510 Spenard Rd., Suite 200, Anchorage, Alaska 99503 (907) 258 -0200
The Mayor and Members of the City Council
City of Seward, Alaska
We have examined the general purpose financial statements of the
City of Seward, Alaska and the combining, individual fund, and account
group financial statements of the City as of and for the year ended June
30, 1986 as listed in the table of contents. Our examination was made in
accordance with generally accepted auditing standards and, accordingly,
included such tests of the accounting records and such other auditing
procedures as we considered necessary in the circumstances. The financial
statements of the year ended June 30, 1985, were examined by other
auditors, whose report dated August 30, 1985, expressed an unqualified
opinion on those statements. We did not examine the financial statements
of the Seward General Hospital, a component unit of the reporting entity,
which statements reflect total assets and revenues constituting 3 percent
and 23 percent,.respectively, in 1986 of the related memorandum totals.
These statements were examined by other auditors whose report thereon has
been furnished to us and our opinion expressed herein, insofar as it
relates to the amounts included for the Seward General Hospital, is based
solely upon the report of the other auditors.
1 -21-
We have reviewed the adjustments described in Note 11 that were
applied to restate 1985 financial statements to give retroactive effect to
correction of an error. In our opinion, such adjustments are appropriate
and have been properly applied to the 1985 financial statements.
In our opinion, based upon our examination and the report of
other auditors, the general purpose financial statements referred to above
present fairly the financial position of the City of Seward, Alaska, at
June 30, 1986 and the results of its operations and the changes in finan-
cial position of its proprietary type trust funds for the year then ended,
in conformity with generally accepted accounting principles applied on a
basis consistent with that of the preceding year. Also, in our opinion,
the combining, individual fund, and account group financial statements
referred to above present fairly the financial position of the individual
funds and account groups of the City of Seward, Alaska, at June 30, 1986,
and the results of operations of such funds and the changes in financial
position of individual proprietary funds for the year then ended, in
conformity with generally accepted accounting principles which have been
applied on a basis consistent with that of the preceding year.
1 -21-
Our examination was made for the purpose of forming an opinion
on the general purpose financial statements taken as a whole and on the
combining, individual fund, and individual account group financial state-
ments. The accompanying financial information listed as supporting
schedules in the table of contents is presented for purposes of additional
analysis and is not a required part of the combined financial statements
of the City'of Seward, Alaska. Such information has been subjected to the
auditing procedures applied in the examination of the general purpose,
combining, individual fund, and individual account group financial state-
ments and, in our opinion, is fairly stated in all material respects in
relation to the combined financial statements of each of the individual
funds and account groups, taken as a whole.
The other data included in this report, designated as the
statistical section" in the table of contents, has not been audited by us
and, accordingly, we express no opinion on such data.
September 12, 1986
22-
GENERAL PURPOSE FINANCIAL STATEMENTS
COMBINED STATEMENTS - OVERVIEW
These financial statements provide a summary overview of the financial
position of all fund and account groups and of the operating results of all
funds. The following statements are presented:
Combined Balance Sheet - All Fund
Types and Account Groups
Combined Statement of Revenues,
Expenditures, and Changes in
Fund Balance - All Governmental
Fund Types
Statement of Revenues, Expenditures
and Changes in Fund Balance -
Budget and Actual - General Fund
Combined Statement of Revenues,
Expenses, and Changes in Retained
Earnings - Proprietary Fund Types
Combined Statement of Changes in
Financial Position - Proprietary
Fund Types
23-
CITY OF SEWARD
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
June 30, 1986
ASSETS
Cash
Cash, restricted
Cash with fiscal agent
Equity in Central Treasury
Receivables (net of allowance for
uncollectibles)
Taxes
Accounts
Grants
Accrued interest
Special assessments
Notes, contracts, and other receivables
Due from other funds
Inventory
Prepaids
Fixed assets, net of accumulated depreciation
Amount to be provided for retirement of general
long -term debt and accrued annual leave
Total assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts and contracts payable
Due to other funds
Accrued liabilities
Funds held in trust
Customer deposits
Deferred revenues
Serial bonds payable
Revenue bonds and general obligation
bonds payable from enterprise fund
revenues and special assessments
Total liabilities
Governmental Fund Types
Capital Special
General Projects Assessment
650
3,567,968
43,375
961,259 171,649
25,156
338,371 43,844
734,486
854,013
124,215
5,770,324 1,050,818 43,844
153,255 68,357
714,184 231,715
90,912
1,527
6,600
1,141,005 840,753 30,967
43,844
2,100,883 1,147,425 74,811
FUND EQUITY
Investment in general fixed assets
Contributed capital, net of amortization
of contributions in aid of construction -
Retained earnings - _
Fund balances (deficits)
Reserved for prepaids 124,215 -
Unreserved: '
Undesignated 3,545,226 (96,607)
Total fund equity (deficit) 3,669,441 96,607)
Total liabilities and fund equity $5,770,324 $1,050,818
See accompanying notes to financial statements.
24-
30,967)
30,967)
43,844
Proprietary Fund Types
Enterprise
205,706
74,051
458,650
137,941
1,365,305
404,661
22,830
31,966,991
34,636,135
Account Grow s
Long -term General
Debt Fixed Assets
138,660
138,660
64,845,021
SAG_RG5_n21
Totals
Memorandum Only)
1986 1985
206,356 $ 800
5,000,000
74,051 71,866
3,567,968 1,491,457
43,375
1,591,558
163,097
382,215
734,486
2,219,318
404,661
147,045
96,812,012
138,660
106,484,802
1,708,162 $ - $ - $
1,929,774
1,273,419 - -
2,219,318
312,816 138,660 - 542,388
1,527
109,865 _ -
116,465
1,976 - -
2,014,701
7,351,156
10,757,394
21,458,522
2,420,219
34,636,135
138,660
138,660
64,845,021
64,845,021
64,845,021
25-
7,395,000
14,219,173
64,845,021
21,458,522
2,420,219
124,215
3,417,652
92,265,629
106,484,802
61,321
1,109,619
2,008,716
163,635
57,315
2,502,033
302,447
68,735
80,168,870
182,828
93,189,642
1,223,650
2,502,033
526,478
3,305
163,395
1,9.16,088
10,000
7,672,000
14,016,949
55,079,293
21,084,811
25,750)
68,735
2,965,604
79,172,693
93,189,642
CITY OF SEWARD
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
Year ended June 30, 1986
EXPENDITURES
Capital
REVENUES General Projects
Taxes
Special assessments 799,563
Licenses and permits
187,393Intergovernmentalrevenue
Charges for services 798,506 850,263
Fines and forfeits 3,422,181
Miscellaneous revenue 9,152
200,684
Total revenues 5,417,479 850,263
EXPENDITURES
Current
General government
1,475,315Publicsafety1,688,989Publicworks
Parks and recreation 542,857
199,159Capitaloutlay
Debt service 1,903,068
Principal retirement
Interest and fiscal charges
Total expenditures 3,906,320 1,903,068
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,511,159 1,052,805)
OTHER FINANCING SOURCES (USES)
Operating transfers in (out) 24,623 7,915
EXCESS OF REVENUES AND OTHER SOURCES OVER .(UNDER)
EXPENDITURES AND OTHER USES 1,535,782 1,044,890)
FUND BALANCES (DEFICITS), beginning of year 2,133,659 948,.283
FUND BALANCES (DEFICITS), end of year 3,669,441 96.607)
See accompanying notes to financial statements.
26-
27-
Totals
Special Debt Memorandum Only)
Assessment Service 1986 1985
799,563 597,983
16,636 16,636 17,146
187,393 62,979
1,648,769 2,044,445
3,422,181 2,552,324
9,152 16,122
3,643 204,327 578,040
20,279 6,288,021 5,869,039
1,475,315 1,641,257
1,688,989 1,594,281
542,857 586,308
199,159 256,883
1,903,068 5,677,126
10,000 10,000 9,000
188 188 544
10,188 5,819,576 9,765,399
20,279 10,188) 468,445 3,896,360)
3,643) 10,188 39,083 6,939)
16,636 507,528 3,903,299)
47,603) 3,034,339 6,937,638
30,967) 3,541,867 3,034,339
27-
CITY OF SEWARD
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
Year ended June 30, 1986
Budgetedudgeted
Taxes $ 797,015
Licenses and permits 152,700
Intergovernmental revenue 1,012,832
Charges for services 1,796,074
Fines and forfeits 14,000
Miscellaneous revenue 225,050
Total revenues 3,997,671
EXPENDITURES
General government 1,491,005
Public safety 1,736,790
Public works 544,289
Parks and recreation 227,899
Total expenditures 3,999,983
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (2,312)
OTHER FINANCING SOURCES
Operating transfers in 2,312
EXCESS OF REVENUES AND OTHER SOURCES
OVER EXPENDITURES AND OTHER USES -
FUND BALANCE, beginning of year 2,133,659
FUND BALANCE, end of year $2.133.659
1,475,315
Variance
1,688,989
Favorable
Actual Unfavorable)
799,563 2,548
187,393 34,693
798,506 214,326)
3,422,181 1,626,107
9,152 4,848)
200,684 24,366)
5,417,479 1,419,808
1,475,315 15,690
1,688,989 47,801
542,857 1,432
199,159 28,740
3,906,320 93,663
1,511,159 1,513,471
24,623 22,311
1,535,782
2,133,659
3,669,441
See accompanying notes to financial statements.
28-
1,535,782
1,535,782
See accompanying notes to financial statements.
29-
CITY OF SEWARD
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES - ENTERPRISE
Year ended June 30, 1986
FUNDS
With comparative totals for year ended'June 30, 1985
1986 1985
OPERATING REVENUES
Residential sales 1,529,232 1,291,427
Commercial sales 1,194,697 725,624
Industrial 211,883 352,835
Governmental sales 870,029 585,994
City of Seward sales 326,354 217,359
Moorage 493,863 501,947
Patient service revenues, net 1,491,333
Miscellaneous 763,446 634,514
6,880,837 4,309,700Totaloperatingrevenues
OPERATING EXPENSES
Power 1,491, ]9] 1,540,$$9
Distribution 276,158 433,091
Pumping 102,256 97,545
Supplies and maintenance 231,145 161,3$6
Personnel services 296,375 278,544
Patient and general service 1,187,166
Administration and general 1,986,758 1,219,511
Depreciation 807,305 670,407
Total operating expenses 6,378,960 4,401,373
Operating income (loss) 501,877 91,673)
NON- OPERATING REVENUES (EXPENSES)
Interest 219,347 402,097
Bond interest 295,180) 571,408)
Other 18,333 89
Fiscal agent fees 500) 500)
Contributions 471,772
Total non - operating revenues (expenses) 413,772 169,722)
Income (Loss) before operating transfers 915,649 261,395)
OPERATING TRANSFERS IN 20,643 6,939
Net income (loss) 936,292 254,456)
TRANSFERS OF CONTRIBUTED ASSETS 492,180 427,694
Increase in retained earnings 1,428,472 173,238
RETAINED EARNINGS, beginning of year, restated
Inclusion of Seward General Hospital retained
135,469 198,988)
earnings, July 1, 1985 856,278
RETAINED EARNINGS (DEFICIT), end of year 2,420,219 25,750)
See accompanying notes to financial statements.
29-
CITY OF SEWARD
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION
ALL PROPRIETARY FUND TYPES - ENTERPRISE FUNDS
Year ended June 30, 1986
With comparative totals for year ended June 30, 1985
SOURCES OF WORKING CAPITAL
Operations
Net loss income (loss)
Item not requiring working capital -
depreciation
loss on sale of equipment
Working capital provided by operations
Increase in long -term debt
USES OF WORKING CAPITAL
Acquisition of property, plant and equipment,
net of contribution -in -aid
Current bond maturities
Removal of Rose Memorial Fund
Increase (decrease) in working capital
ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL
Increase (decrease) in current assets
Caste
Cash with fiscal agent
Receivables
Accounts receivable, net
Accrued interest
Grants
Prepaids
Due from other funds
Inventory
Increase (decrease) in current liabilities
Accounts and contracts payable
Customer deposits
Deferred revenues
Due to other funds
Accrued liabilities
Current maturities of bonds payable
Decrease in working capital
1986 1985
936,292 $ (254,456) 1
809,673
282
1,746,247
1,746,247
6,096,128
289,758
2,111
6,387,997
4,641,750)
670,407
415,951
5,000,000
5,415,951
156,609
253,636
Y1V, L`YJ
5,005,706
4,894,967) $5,000,000
2,185 3,323
85,461)
156,488)
1,753,225)
4,853)
954,533
37,124
5,901,152)
634,647
53,530)
644,164)
1,175,671)
44,480)
23,796
1,259,402)
4,641,750)
See accompanying notes to financial statements.
30-
65,677
156,488
1,514,839
291,426
105,058
7,136,811
944,352
108,486
646,140
283,597
58,530
90,000
2,131,105
5,005,706
7
L
1
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS
June 30, 1986
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies that affect the more significant elements of the
financial statements of the City of Seward are summarized as follows:
a. Scope of presentation of financial statements: The accompanying
financial statements include all activities and reporting entities
over which the City of Seward (City) exercises oversight responsi-
bility. Oversight responsibility is derived from the City of Seward's
power and includes, but is not limited to, financial interdependency,
selection of governing authority, designation of management, ability
to significantly influence operations and accountability for fiscal
matters. The City owns the building and land upon which the Seward
General Hospital (Hospital) is located, and accounts for them in the
General Fixed Assets Account Group. As of January 1, 1986, Hospital
employees became City employees. Operating responsibilities have been
delegated to the Seward General Hospital, Inc. non - profit advisory
board. The Hospital's accounting records of financial activity are
maintained separately from the City's. The financial position and
operating results of the Hospital are included in these financial
statements.
Responsibility and accountability for the educational function is vested
with the Kenai Peninsula Borough. Accordingly, financial data of the
schools is not included in the accompanying financial statements of the
City.
b. Basis of accounting: The City maintains its accounts in accordance
with generally accepted accounting principles. The modified accrual
basis of accounting is used by the General Fund, Capital Projects
Funds, Debt Service Fund, and Special Assessment Funds. Revenues are
recognized in the accounting period in which they become both measur-
able and available. Expenditures are recognized when the related fund
liability is incurred, except for unmatured interest on general long-
term debt, which is recorded when due.
All proprietary funds are accounted for using the accrual basis of
accounting. Their revenues are recognized when they are earned, and
their expenses are recognized when they are incurred. .
In applying the measurable and available concept to intergovernmental
revenues, the legal and contractual requirements of the numerous in-
dividual programs are used as guidance. There are, however, essen-
tially two types of these revenues. In one, monies must be expended
on the specific purpose or project before any amounts will be paid
to the City; therefore, revenues are recognized based upon expendi-
tures recorded. In the other, monies are virtually unrestricted as
to purpose of expenditure and are usually revocable only for failure
to comply with prescribed compliance requirements. These resources
are reflected as revenues at the time of receipt or earlier if the
measurable and available criteria are met.
Sales tax revenues are recognized as cash is received by the Kenai
Peninsula Borough because amounts receivable are not susceptible to
accrual. Real and personal property taxes receivable are accrued,
31-
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1986
1. SUMMARY OF SIGNFICANT ACCOUNTING POLICIES (Con't.)
b. Basis of accounting (Con't.)
but uncollected amounts, in excess of the estimated uncollectible
portion, are deferred and reflected as such in the balance sheet.
Licenses and permits, fines and forfeits, and miscellaneous revenues
except investment earnings and land sales where secured notes are
taken) are recorded as revenues when received in cash because they are
generally not measurable until actually received. Investment earnings
are recorded as earned since they are measurable and available.
Special Assessments are recognized as revenue only when they become
measurable and available as net current assets. Annual installments
not yet due are reflected as special assessment receivables.
1
C. Budgets: Annual budgets are legally adopted by the City Council for
the General Fund. Budgets are prepared and presented on the modified ,
accrual basis of accounting.
Budgetary control (the level at which expenditures may not exceed
budget) is maintained at the object class level by the encumbrance
of estimated purchase amounts prior to the release of purchase
orders to vendors. Purchase orders which would result in an over-
run of object class balances are not released until additional
appropriations are made available.
Amendments to appropriations may be made by the city administration or
the Council by transfers within a department. Supplemental appropria-
tions are made by the City Council.
A comparison of original annual appropriations with the final amended
expenditure budget as presented in the financial statements is as follows:
Original Final
Fund Appropriation Budget
General Fund $3,912,672 $3,999,983
Unencumbered, unexpended appropriations lapse at year end.
d. General fixed assets: Fixed .assets required by other than the Enterprise
Funds for governmental purposes are recorded as expenditures in each fund
and are capitalized at historical cost or estimated historical cost in
the General Fixed Assets Group of Accounts. Public domain ( "infra-
structure ") general fixed assets consisting of certain improvements other
than buildings, including roads, bridges, curbs, etc. are not capitalized.
Assets contributed or received as gifts are recorded in the General Fixed
Assets Group of Accounts at the fair market value when received. Depre-
ciation is not computed on general fixed assets. Upon disposal of sig-
nificant property items, the General Fixed Assets Group of Accounts is re-
lieved of the related cost, or estimated cost, and any receipt is normally
accounted for as revenue in the General Fund.
32-
CITY OF SEWARD
NOTES TO FINANCIAL
STATEMENTS
19 N (
CON'T.)
June 30,
1. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (Con't).
e, Pension plans:
Substantially all
employees of the City participate
in the
Public Employees
Retirement System
on a current basis as requiredPgnebaby PERS.
Alaska. Pension costs are funded
Pension costs are recorded
in the accounts as funded.
al
of
Electric Fund employees are members of t eIn ternedlcontrgbution pension
Electrical Workers, which maintains
plan.
f, Inventory:
Inventories are carried at the lower of cost or market,
de-
Inventory:
by the first -in, first -out method.
g,
Accrued leave: Annual leave (vacation)
arnedebyrthe employees
ewith lthe
he
proprietary funds in the period it isesented in the related fund balance
total liability for accrued leave p
sheet. The amount of
compensated absences recorded
as expenditures in
accrued during the y
nor -
governmental
funds is the amount the current
mally be liquidated with expendable availableoveeena1 fundybalance
portion of the liability is recorded in the
eg
governmental
long-term
fu
debt account
sheet, with the remaindeevacationnathJune 30, 1986 consisted of the
N groups.
Accumulated unpaid
following:
56,258
General Fund --—
of Accounts $
138,660
General Long-term Debt Group _
Enterprise Funds $ 30,475
Harbor 28,029
Electric 9,611
Water /Sewer
68,115
During the year,
encumbrances are recorded
h. Encumbrance accounting:
fund
as expenditures and a
reserve of
principles, at
n
yeareendothemeny
with generally accepted
accounting P P
cumbrances are reversed from expenditures and fund balance reserves.
i, Investments:
Investments of the City consist of time certificates of
deposit or repurchase agreements which are valued at the lower of
cost or market.
ro
J• Fixed assets (Enterp rise Funds): Assets comprising p ert lant
property P
and equipment in the
Enterpri hFusesofr
the tstraight Cline method
1 ciation has been provided by e
over the estimated economic lives of the assets.
33-
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON T.)
June 30, 1986
1• SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Con't.)
I
j. Fixed assets (Enterprise Funds) (Con't.)
Estimated lives of major asset categories are as follows:
Buildings
Improvements other than buildings 10 -30 years
Equipment 15 years
5 -20 years
Enterprise Fund property, plant and equipment acquired by contri- butions in aid of construction from
revenues externally restricted is depreciated. mrelatedThe depre- ciation expense is included in the determinationThe of net income. annual depreciation on such contributed plant isfrom transferredretainedearningstocontributionsinaid. Accumulatedtizationof amor- contributions in aid represents the cumulative totalsOfsuchdepreciationtransfers.
k. unbilled service revenue: Utility revenues are based on cyclebillingsrenderedtocustomersmonthly. As a result of this cyclebillingmethod,
the utilities do not accrue revenue at the end ofanyfiscalperiodforservicessoldbutnotbilledatsuchdate.
1• Interfund charges: Interfund charges by the General Fund for inlieuoftaxesandadministrativeexpensesaremadeinaccordancewiththebudgetordinance.
M. Central treasury: The City has combined all of its funds intoCentralTreasury ". Cash a
restrictions imposed by ordinance, reso- lution or otherwise have been.segregated in the accompanyin state- ments from funds unrestricted gastouse.
T he Central Treasury concept permits investment of combined fundandearningsthereonhavebeenreportedinthefundwhichsuppliedtheresourcesforinvestment.
At June 30,
19867 the Central Treasury was composed of the following: Cash (overdraft)
Certificates of Deposit $ (255,761)
Repurchase Agreements 86,000
3,737,729
13,567,968
n. Reserve:
The following reserve has been established in thegovernmentalfundtypes:
General fund: Reserve for prepaid expenditures: A portionfundbalancerepresenting of
prepaid insurance at year end. Thesegregationhasbeenmadeforexpenditureuponuseoftheinsurancepolicy.
34-
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1986
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Con't.)
o. Comparative data: Comparative data for the General Fund Balance
Sheet, General Fixed Assets Group of Accounts,
Debt Group of Accounts and for the Enterprise Fund Balance Sheet,
Statement of Revenues, Expenses and Changes in Retained Earniins
and Statement of Changes in Financial Position are presentedordertoprovideanunderstandingofthechangeinfinancial
position for the General Fund, General Fixed Assets Group of
Accounts and General Long -Term Debt Group of Accounts and changes
in financial position and operations for the Enterprise Fund. Comparative data are not .included for the other funds.
p. Memorandum only totals - Combined statements:
Total columns are
presented for the Combined Balance Sheet - All Fund Types anax-
Account Groups and the Combined Statement of Revenues,
in
tures, and Changes in Fund Balance - All Governmental Typ e
e
the General Purpose Financial Statements. Those total columns
are captioned as memorandum only and are presented for overview
informational purposes only. They do not fairly present financial
position or results of operations for the governmental ut ri
whole in conformity with generally accepted accounting Principles-
2. LONG -TERM RECEIVABLE
On August 24, 1984, the City Council authorized the closing of the
sale of the Gateway Subdivision lots. The purchaser executed atermpromissory
note for the sales price of $742,500 which is included in long -
receivable and deferred revenue in the financial statements.
Under the
g
terms of the note, $2,000 per lot is payable to the City upon the closiof
of the first one hundred lots sold; $3,500 per o the closing
theofthe
remaining lots, until the entire principal is p aid in
amount bears no interest, unless in the case of default when interest shaablepay
accrue at 12% per annum. Any remaining indebtednesshallh
e duenapaid against
in full on January 1, 1990. As of June 30, 1986, 16
1986.
the principal, resulting in a princi p al
balance of $726,500 at June 30,
3. PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of January 1•
Taxes are levied on July 1, and are payable in two installments on August 15
and November 15. The Kenai Peninsula Borough bills and collects all property
taxes on behalf of the City.
4. PENSION PLANS
As of June 30, 1986, substantially all of the City employees, excluding
the employees of the Electric Fund, were covered by the State of Alaska Public
Employees Retirement System (PERS). The Public Employee Retirement System is a
to which ' defined benefit pension pl
policemen
ed to contribute4.25% of the r
firemen
compensation.
5 /
tinder
other employees are requxr
35--
1
4.
5.
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1986
PENSION PLANS (Con't.)
the plan,
the State of Alaska and all participating political subdivisions areconsidered
collectively to be a single employer and contribute to the plan atasinglecompositeratetoprovidefornormalcoststogetherwithapastserviceratedeterminedseparatelyforeachemployer. The City's contribution rate for1986was13.13% of employee compensation for a total contribution of $290,126.
At June 30, 1985, the Plan had net assets in excess of accumulated benefitsof $182,434. The assumed rate of return used in determining the plan benefitsin1986was8%. The actuarial present value of accumulated non-vested planbenefitsisnotavailableasPERSisnotrequiredtoreportsuchinformationtocertaingovernmentalagenciespursuanttotheEmployeeRetirementIncomeSecurityActof1974. Unfunded accrued liabilities are being amortized overa25yearperiod.
Electric Fund employees are members of the International Brotherhood ofElectricalWorkers,
which maintains its own defined contribution pension plan. The City's contribution rate for 1986 was $3.00 per compensable hour, for atotalcontributionof $40,510.
CHANGES IN GENERAL FIXED ASSETS
A summary of changes in general fixed assets follows:
Balance
July 1, 1985,
Restated Additions Deletion
Balance
Tune 30, 1986
Land
Buildings
19,410,851
6'527,114
549,355 742,844 19,217,362
Improvements other 11998 6,529,112
than buildings
Equipment 28,213,191 9,899,425 42,608 38,070,008928,137 101,328 926 1,028,539
55,079,293 10,552,106 786,378 64,845,021
A summary of proprietary1986follows: fund type property, plant and equipment at June 30,
Cost
Land
Buildings $ 120,709
Improvements other than buildings 4,215,138
Equipment 15,547,324
Construction in progress 1,523,384
16,390,990
Less accumulated depreciation 37,797,545
5,830,554
31,966,991
Construction in progress consists primarily of the electric intertie project.
36-
Li
1
1
t
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1986
6. SEGMENT INFORMATION FOR ENTERPRISE FUND
The City maintains four Enterprise Funds which provide electric, water /sewer,
harbor and hospital services. Segment information for the year ended June 30, 1986
is as follows:
Operating revenues
Depreciation expense
Operating income (loss)
Net income (loss)
Contributions to funds
Property, plant and
equipment additions
Working capital
Total assets
Bonds and other long --
term liabilities
Total fund equity
Electric Water /Sewer
yFund
3,932,714 $
288,776
1,058,687
983,735
965,470
Total
Harbor Hospital Enterprise
Fund Fund Fund
603,265 $ 792,858 $1,552,000 $ 6,880,837
385,422 74,282 58,825 807,305
254,678) 46,156 (348,288) 501,877
376,196) 179,310 149,443 936,292
99,581) - - 865,889
6,938,648 8,048 144,577 30,357 7,121,630
769,276) (1,246,735) 504,208 472,709 (1,039,094)
21,291,929 10,669,514 1,471,315 1,203,377 34,636,155
6,522,000 817,156 12,000 - 7,351,156
12,919,869 8,549,102 1,404,049 1,005,721 23,878,741
7. CHANGES IN LONG -TERM DEBT
The following is a summary of bond transactions of the City for the year
ended June 30, 1986:
General Accrued
Obligation Annual Revenue
Bonds Leave Bonds Total
Outstanding at July 1, 1985 $7,479,000 $172,828 $203,000 $7,854,828
Bonds retired 221,000 - 66,000 287,000
Deletions to accrued leave - 34,168 - 34,168
Outstanding at June 30, 1986 $7,258,000 $138,660 $137,000 $7,533,660
General obligation bonds of $7,258,000 have been recorded in the Enterprise
Funds which benefited from proceeds of such bond issues. Principal and interest
expenditures related to the 1965 Street Improvement Serial Bonds, which was paid
off in 1986, are paid through the Debt.Service Fund with monies transferred from
the General Fund.
Bonds payable at June 30, 1986 are comprised of the following individual
issues:
General Obligation Bonds:
226,000 1962 Water Serial Bonds due in annual installments of
10,000 to $12,000 through September 1, 1991; interest at 6 %. $ 66,000
162,000 1967 Small Boat Harbor Serial Bonds due in annual
installments of $11,000 to $12,000 through June 1, 1987;
interest at 4.1 %. 12,000
37-
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1986
7. CHANGES IN LONG -TERM DEBT (Con't.)
1,200,000 1976 Water /Sewer Serial Bonds due in annual
installments of $50,000 to $110,000 through June 1,
1996; interest at 8% to 7.25 %. 795,000
1,700,000 1980 Electric Serial Bonds due in annual in-
stallments of $50,000 to $155,000 through January 1,
2001; interest at 7 %. 1,465,000
5,000,000 1984 Electric Serial Bonds due in annual in
stallments of $80,000 to $550,000 through October 1,
2004; interest at 12.5% to 9.5 %. 4,920,000
7,258,000
Revenue Bonds:
400,000 Of 1957 Electric Utility Serial Bonds due in
annual installments of $63,000 to $70,000 through
July 1, 1987; interest at 5.5 %. $ 137,000
The annual requirements to amortize all debt outstanding as of .tune 30,
1986, is shown at footnote number 12.
The City's various bond agreements contain covenants requiring certain
earnings and sinking fund provisions. The City has either met or intends to
transfer amounts from other funds in order to meet these requirements.
The authorization to issue general obligation bonds in the amount of
5,200,000 to finance the Gateway Subdivision lot improvements has been
cancelled.
8. INTERFUND RECEIVABLES AND PAYABLES
At June 30, 1986, interfund receivables and payables consisted of the
following:
General Fund
Capital Projects Funds
4th Ave. Dock
Gateway Subdivision
Community Center
Boat Harbor Expansion
Boat Harbor Improvements
Radio Translator
Marine Industrial Park
Other
Enterprise Funds
Electric
Water /Sewer
Harbor
Interfund Interfund
Receivable Payable
714,184
7,375
4,046
1,166
756,998
65,682
3,800
13,911 60,365
9,576 162,809
859,199 -
1,273,419
506,106 -
2,219,318 $2,219,318
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1986
9. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
a. Appropriations: The City authorizes expenditure levels of appropriations by
type of service. Ordinance requirements provide that budgetary guidelines
are not restrictive and may be reallocated by either the City Manager or the
Council. However, the total appropriation level may not be exceeded. During
the year ended June 30, 1986, General Fund expenditures exceeded amounts
appropriated for some services but did not exceed the total amount appro-
priated or actual revenues.
b. Deficit Funds:
Special Assessments: The deficits of the Special Assessment Funds (Jesse
Lee Heights - $27,145 and Bayview - $3,822) arise because of the application
of generally accepted accounting principles to the financial reporting for
such funds. Special assessments are recognized as revenue only to the extent
that individual installments are considered current assets. The deficits of
both funds will be reduced and eliminated as deferred special assessment
installments become current assets.
Enterprise: The Water /Sewer Fund had a deficit retained earnings of $740,784
at June 30, 1986.
10. COMMITMENTS AND CONTINGENCIES
A judgment against the City in the amount of $6,225,000 was rendered by the
Superior Court, State of Alaska, on May 14, 1985. This case involved a dispute
over a lease termination by the City for a portion of the Seward Marine Indus-
trial property at Fourth of July Creek on Resurrection Bay. The matter is now
on appeal to the Alaska Supreme Court. The City's attorneys are of the opinion
that there appears to be a better than 50% chance that the judgement will be
reduced, coupled with the substantial probability that any losses the City might
incur would be covered by insurance, leads them to the conclusion that although
the dollar amounts involved in the litigation are substantial, the City's actual
exposure is substantially less than that claimed.
A consolidated action in excess of $1,600,000 has been filed against the
City of Seward in federal court in connection with the construction on Phase IV
of the Seward Marine Industrial Park. The contractor alleges that a welding
problem in construction of the shiplift at the Marine Industrial Center was, in
fact, a design problem for which the City is responsible. The City's attorneys
have not determined the potential exposure to the City as litigation is in its
early stages. Depositions have been scheduled in January - September, 1987.
The Phase III contract at the Seward Marine Industrial Park included the
dredging of materials from the proposed harbor for the industrial park. The
City and the contractor reached a settlement in regards to the contractors'
claim that changed conditions, including the presence of cobbles and boulders,
entitled the contractor to additional compensation. The contractor was paid
an additional $1,875,000 in fiscal year 1985 for their dredging claim. The
City entered into arbitration with the project engineer attempting to recover
amounts paid to the contractor under the aforementioned litigation, contending
that inadequate design by the project engineers caused the contractor problems
and resulted in a stability problem in the outer breakwater cells. The City
was successful in this arbitration and recovered $1,463,278 in fiscal year 1986.
39-
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1986
10. COMMITMENTS AND CONTINGENCIES (Con't.)
The City has settled an arbitration claim with the contractor responsible
for the erection of the electric transmission, subject to obtaining approvals
by the contractor's creditors. A settlement of $1,161,326 has been recorded
as a liability of the electric utility fund.
Litigation has been initiated against the City seeking punitive damages
for a suicide that occurred in the Seward City Jail on or about November 20,
1984. Discovery will be required in order to fully develop the factual found-
ation for damages and to prepare a full analysis of the prospects for this
case. The tenders of defense of this action has been accepted by the Council's
insurance carrier, who at this stage cannot offer an opinion as to the probable
outcome.
Significant financial assistance has been received by the City from num-
erous federal and state agencies in the form of grants. The disbursement of
funds received under these grants generally requires compliance with terms
and conditions specified in the grant agreements, and is subject to audit by
the grantor agencies. Any disallowed claims resulting from such audits could
become a liability of the General Fund or other applicable funds. However,
in the opinion of management, liabilities resulting from disallowed claims,
if any, will not have a material effect on the City's financial position at
June 30, 1986.
11. RECLASSIFICATION AND ACCOUNTING CHANGE
The General Fixed Assets Group of Accounts have been restated to account
for an error made in prior periods in accounting for land. The investment in
general fixed assets has been decreased $10,099,674 to reflect this adjustment.
The Electric Fund beginning retained earnings has been restated to reflect
capitalization of interest expense related to the intertie capital project.
Retained earnings has been increased $161,219 to reflect this adjustment.
12. SUBSEQUENT EVENT
On August 28, 1986, the City sold $4,845,472 of General Obligation Refund-
ing Bonds, for the purpose of refunding $3,655,000 of the $4;920,000 remaining
of outstanding bonds issued to construct the electric intertie project. The
proceeds of the refunding will be used for early payment of principal due in
1995 and beyond. The $6,110,472 total outstanding principal after the redemp-
tion is comprised of the $4,845,472 1986 issue plus the $1,265,000 remaining
from the 1984 issue.
40-
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS (CON'T.)
June 30, 1986
12. SUBSEQUENT EVENT (Con't.)
The annual requirements to amortize all debt outstanding after the refunding,
including interest payments of 6,387,086 are as follows:
General Special
Fiscal Obligation Revenue
Years Ending Bonds Bonds Total
1987 645,498 77,535 723,033
1988 886,657 70,685 957,342
1989 886,797 886,797
1990 889,537 889,537
1991 883,347 883,347
1992 -1996 4,398,000 4,398,000
1997 -2001 3,812,802 3,812,802
2002 -2006 2,421,700 2,421,700
14,824,338 148,220 14,972,558
41-
AUDITORS' COMMENTS ON INTERNAL CONTROL
MADE AS PART OF AN ATTACHMENT P AUDIT
I
September 12, 1986
1
The Mayor and Members of the City Council
City of Seward, Alaska
timing and extent of performing the auditing procedures necessary for
We have examined the general purpose financial statements of the
City of Seward, Alaska and the combining, individual fund, and account
group financial statements of the City as of and for the year ended June
30, 1986 as listed in the table of contents, and have issued our report
thereon dated September 12, 1986. As part of our examination, we made a
study and evaluation of the system of internal accounting control of the
City of Seward, Alaska, to the extent we considered necessary to evaluate
the system as required by generally accepted auditing standards and the
standards for financial and compliance audits contained in the U. S.
General Accounting Office's Standards for Audit of Government
Organizations, Programs, Activities and Functions, and the State of Alaska
Single Audit Regulation (2AAC 45.010). For the purpose of this report, we
have classified the significant internal accounting controls into the
categories of treasury, revenue receipts, purchase disbursements and ex-
ternal financial reporting.
Our study included all of the control categories listed above.
The purpose of our study and evaluation was to determine the nature,
timing and extent of performing the auditing procedures necessary for
expressing an opinion on the entity's financial statements. Our study and
evaluation was more limited than would be necessary to express an opinion
on the system of internal accounting control taken as a whole or on any of
the categories of controls identified above.
The management of the City of Seward, Alaska is responsible for
establishing and maintaining a system of internal accounting control. In
fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of control
procedures. The objectives of a system are to provide management with
reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition, the entity is managing
its federal and state financial assistance programs in compliance with
laws and regulations, and that transactions are executed in accordance
with management's authorization and recorded properly to permit the
preparation of financial statements in accordance with generally accepted
accounting principles.
Because of inherent limitations in any system of internal
accounting control, errors or irregularities may nevertheless occur and
not be detected. Also, projection of any evaluation of the system to I
42-
1
future periods is subject to the risk that procedures may become inade-
quate because of changes in conditions or that the degree of compliance
with the procedures may deteriorate.
Our study and evaluation made for the limited purpose described
in the first paragraph would not necessarily disclose all material weak-
nesses in the system. Accordingly, we do not express an opinion on the
system of internal accounting control of the City of Seward, Alaska, taken
as a whole or on any of the categories of controls identified in the first
paragraph. However, we have issued, in connection with our financial
audit, a management letter in which none of the conditions are considered
to be a material weakness in internal accounting control.
This report is intended solely for the use of the City of
Seward, Alaska, the cognizant audit agency, the state coordinating agency,
state grantor agency, and other federal and state audit agencies and
1
should not be used for any other purpose.
43-
AUDITORS' COMMENTS ON COMPLIANCE
FOR ATTACHMENT P AUDITS
September 12, 1986
The Mayor and Members of the City Council
City of Seward, Alaska
We have examined the general purpose financial statements of the
City of Seward, Alaska and the combining, individual fund, and account
group financial statements of the City as of and for the year ended June
30, 1986, as listed in the table of contents, and have issued our report
thereon dated September 12, 1986. Our examination was made in accordance
with generally accepted auditing standards; the provisions of
Standards for Audit of Governmental Organizations, Programs, Activities
and Functions, promulgated by the Comptroller General of the U. S., as
they pertain to financial and compliance audits; the provisions of the
U. S. Office of Management and Budgets' (OMB) Compliance Supplement -
Uniform Requirements of Programs for Grants to State and Local Governments
the compliance supplement); the provisions of OMB's Circular A -102,
Uniform Administrative Requirements for Grants -in Aid to State and Local
Governments, Attachment P, Audit Requirements; the State Single Audit
Regulation (2 AAC 45.010); the provisions of the State of Alaska, Office
of Management and Budget's State Single Audit Guide and Compliance
Supplement, conducted for 2 AAC 45.010; and accordingly, included such
tests of the accounting records and such other auditing procedures as we
considered necessary in the circumstances.
Based on our examination, we found, that for the items tested,
the City of Seward, Alaska complied with the material terms and conditions
of the federal award and state assistance agreements, except as described
in the findings of noncompliance. A representative number of transactions
from each major state assistance program was selected .to determine if
state funds are being expensed in accordance with the terms of applicable
agreements and those provisions of state law or regulations that could
have a material effect on the financial statements or on each major state
assistance program tested. Further, for the items not tested, based on
our examination and the procedures referred to above, nothing came to our
attention to indicate that the City of Seward had not complied with the
material compliance terms and conditions of the awards referred to above
beyond the findings noted above.
This report is intended solely for the use of the City of
Seward, the cognizant audit agency, the State Coordinating Agency, state
grantor agency, and other federal and state audit agencies. This restric-
tion is not intended to limit the distribution of this report which, upon
acceptance by the City of Seward, is a matter of public record.
44-
Potential
Reimbursement
Effect
Over /Under
M
CITY OF SEWARD, ALASKA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FEDERAL REVENUE SHARING
For the year ended June 30, 1986
Source Findings
Section 51.101(b) The recipient did appropriate funds
within 24 months after the end of
the entitlement period; however this
budget lapsed at June 30, 1986.
Section 51.14 The recipient did not publish in aF
newspaper of general circulation or
by alternative means stating that a
summary of the enacted Federal Revenue
Sharing budget is available for public
inspection within thirty days of its
enactment.
Section 51.108(a)(b) Publication was not made of the prior
audit reports availability for public
inspection.
The reimbursement effect is not applicable.
45—
Potential
Reimbursement
Effect
Over /Under
M
CITY OF SEWARD, ALASKA
SCHEDULE OF FEDERAL REVENUE SHARING
For the year ended June 30, 1986
V.S. Department of the Treasury
Project Number
EP 16 Entitlement
EP 17 Entitlement
46-
Revenue Recorded
During Year Ended
June 30, 1986
38,196
91,248
CITY OF SEWARD, ALASKA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
STATE AWARDS
For the year ended June 30, 1986
Program
DEPARTMENT OF PUBLIC SAFETY
Contract Jails Program
DEPARTMENT OF REVENUE
Questioned
Findings
Contract reimbursement exceeded $10,020
the cost of providing the custody
and security of State of Alaska
prisoners.
Day Care Assistance Program Administrative expenditures ex-
ceeded the 10% or the $1,000
tolerance. 10.50° ($6,124) was
paid to Seward Life Action
Council for administrative duties.
47-
295
CITY OF SEWARD
SCHEDULE OF STATE AWARDS
AND AWARDS TESTED FOR COMPLIANCE
For the year ended June 30, 1986
1) $387,600 passed through from City to three local health entities; all three
entities have had State Single Audits.
2) Money used to supplement general fund expenditures; testing of expenditures
performed through testing of general fund expenditures.
48-
State Amount
Name Amount Received
of Award of Award and/or Receivable
Department of Community and
Regional Affairs:
Community Block Development 105,000 105,000
State Revenue Sharing (1) 653,679 653,679
Municipal Assistance (2) 313,596 313,596
Department of Public Safety:
Contract Jails Program (2) 264,000 264,000
Alaska Highway Safety Planning Agency
Agreements 14,520 14,474
Department of Administration:
Municipal Grant Program -
Day Care Construction #3186 -302 50,000 50,000
Prison Planning #6186 -300 25,000 25,000
Department of Revenue:
Day Care Assistance Program 58,288 58,288
Department of Transportation and Public
Facilities:
Rail Corridor Study #F10952 85,000 85,000
Seward Boat Harbor #K78405 1,996,400 998,200
Seward Airport Master Plan #F1022 30,000 30,000
Seward Dock Improvements #X70027 147,500 147,500
Road Maintenance Service Area and Local
Service Roads & Trails G -12303 82,101 82,101
1) $387,600 passed through from City to three local health entities; all three
entities have had State Single Audits.
2) Money used to supplement general fund expenditures; testing of expenditures
performed through testing of general fund expenditures.
48-
Matching
Cash
and /or Less Total Amount Dollar
Other Local Deferred Program Expended and /or Amount Amount
Funds Revenue Revenue Encumbered Tested Questioned
80,064 185,064 185,064 179,010
653,679 653,679 387,600
313,596 313,596
264,000 253,980 10,020
14,474 14,474 14,474
i
50,000 50,000 50,000
137,893 162,893 137,893 60,541
58,288 58,288 6,124 295
4,759 89,759 89,759 86,603
756,998) 241,202 241,202 154,277
3,262 33,262 33,262 30,000
147,500 147,500 139,975
21,802 103,903 102,722 92,050
49-
FINANCIAL STATEMENTS OF INDIVIDUAL FUNDS
Statements and Schedules
50-
GENERAL FUND
The General Fund is established to account for the revenues and expen-
ditures necessary to carry out basic governmental activities of the City
such as police protection, fire protection, recreation, planning, legal
services, administrative services, etc. Appropriations are made from the
fund annually. The fund will continue to exist indefinitely.
Revenues, for this and .other funds, are recorded by source, i.e., taxes,
licenses, service charges, etc. Expenditures are recorded first by function,
then by activity and object of the expenditure.
General Fund expenditures are made primarily for current day -to -day
operating expenses and operating equipment. Capital expenditures for
large -scale public improvements, such as building, water and sewer projects
or streets, are accounted for elsewhere in the Capital Projects Funds or
Enterprise Funds.
1 -
51-
CITY OF SEWARD
GENERAL FUND
BALANCE SHEET
June 30, 1986
With comparative totals for year ended June 30, 1985
ASSETS 1986 1985
Cash on hand 650 600
Equity in Central Treasury 3,567,968 1,491,457
3,568,618 1,492,057
Receivables
Accounts 1,020,378 915,831
Accrued interest 7,147
Real property taxes 10,239 29,165
Personal property taxes 42,014 25,273
Sales taxes 5,195 16,133
Rents 7,986
Assessments 338,371
1,424,183 993,549
Less allowance for uncollectibles 73,192) 51,461)
Accounts and taxes receivable, net 1,350,991 942,088
Notes receivable 726,500
Prepaid insurance 124,215 68,735
Total assets 5,770,324 2,502,880
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable 153,255 115,988
Due to other funds 714,184 48,693
Accrued liabilities 90,912 85,732
Funds held in trust 1,527 3,305
Deferred revenues 1,141,005 115,503
Total liabilities 2,100,883 369,221
Fund balance
Reserved for prepaids 124,215 68,735
Unreserved:
Undesignated 3,545,226 2,064,924
3,669,441 2,133,659
Total liabilities and fund balance $5.770.324 $2.502.880
52-
CITY OF SEWARD
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
Year ended June 30, 1986
REVENUES
Taxes
General property
Sales
Total taxes
Licenses and permits
Budget Actual
597,015 $ 565,720
200,000 233,843
797,015 799,563
Variance
Favorable
Unfavorable)
31,295)
33,843
2,548
Building permits 135,000 167,056 32,056
Taxi permits 200 739 539
Animal control licenses 11000 306 694)
Auto license commissions 16,000 18,742 2,742
Miscellaneous 500 550 50
Total licenses and permits 152,700 187,393 34,693
Intergovernmental revenues
Federal revenue sharing
State of Alaska shared revenues
General revenue sharing
Municipal assistance
Fish tax
Liquor tax
Amusement tax
Total intergovernmental revenues
Charges for services
Administrative
Rents and leases
Computer
Television
Jail contract
Police grant
Railroad surveillance
Work orders
Recreation
Other
Total charges for services
Fines and forfiets
Fines and bails
Miscellaneous revenues
Interest
Sale of land and equipment
Other
Total miscellaneous revenues
I
Total revenues
625,000
294,082
75,000
18,000
1,044,851
282,143
36,000
35,000
264,000
37,230
12,000
72,500
7,300
5,050
1,796,074
14,000
206,000
1,000
18,050
225,050
3,997,671
91,248
266,079
313,596
107,947
19,300
336
798,506
1,063,714
369,009
36,000
45,087
264,000
39,760
12,000
91,919
10,644
1,490,048
3,422,181
9,152
174,203
2,043
24,438
200,684
5,417,479
91,248
358,921)
19,514
32,947
1,300
414)
214,326)
18,863
86,866
10,087
2,530
19,419
3,344
1,484,998
1,626,107
4,848)
31,797)
1,043
6,388
1-1
1,419,808
OTHER FINANCING SOURCES
Operating transfers in 2,312 24,623 22,311
Total revenues and other sources 3,999,983 5,442,102 1,442,119
53-
CITY OF SEWARD
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (CON'T.)
BUDGET AND ACTUAL
Year ended June 30, 1986
City Manager
Personal services 185,448 176,722
Variance
Supplies 2,250 4,269
Favorable
EXPENDITURES Budget Actual Unfavorable)
General government
1,000 238 762
Mayor and Council
207,048 201,642 5,406
Supplies 11,200 14,880 3,680)
Other services and charges 242,511 271,436 28,925)
Capital outlays 1,000 368 632
Total Mayor and Council 254,711 286,684 31,973)
City Manager
Personal services 185,448 176,722 8,726
Supplies 2,250 4,269 2,019)
Other services and charges 18,350 20,413 2,063)
Capital outlays 1,000 238 762
Total City Manager 207,048 201,642 5,406
City Clerk
Personal services 99,216 93,942 5,274
Supplies 3,050 2,235 815
Other services and charges 15,295 10,940 4,355
Capital outlays 1,000 1,000
Total City Clerk 118,561 107,117 11,444
Finance
Personal services 260,335 247,870 12,465
Supplies 15,000 18,236 3,236)
Other services and charges 331-900 22,702 11,198
Capital outlays 4,784 4,784)
Total finance 309,235 2931592 15,643
Economic development
Personal services 77,014 56,657 20,357
Supplies 2,650 6,110 3,460)
Other services and charges 57,050 67,484 10,434)
Capital outlays 1,500 1,370 130
Total economic development 138,214 131,621 6,593
General government services
Personal services 26,000 33,497 7,497)
Supplies 2,700 3,338 638)
Other services and charges 434,536 415,440 19,096
Capital outlays 2,384 2,384)
Total general government
services 463,236 454,659 8,577
Total general government 1,491,005 1,475,315 15,690
54-
1
t
CITY OF SEWARD
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (CON'T.)
BUDGET AND ACTUAL
Year ended June 30, 1986
EXPENDITURES
Public safety
Police
Personal services
Supplies
Other services and charges
Capital outlays
Total police
Fire
Personal services
Supplies
Other services and charges
Capital outlays
Total fire
Building inspection /engineering
Personal services
Supplies
Other services and charges
Capital outlays
Total building inspection
Total public safety
Public works
Streets
Personal services
Supplies
Other services and charges
Capital outlays
Total streets
Shop
Personal services
Supplies
Other services and charges
Capital outlays
Total shop
Buildings
Personal services
Supplies
Other services and charges
Capital outlays
Total buildings
Total public works
55-
Budget
946,958
4,550
89,489
3,250
1,044,247
113,805
7,850
69,386
26,901
217,942
248,533
6,950
219,118
474,601
1,736,790
247,506
36,000
33,775
2,500
319,781
113,549
5,300
20,400
2,000
141,249
46,544
4,900
28,715
3,100
83,259
544,289
Actual
896,626
11,561
100,144
1,413
1,009,744
110,098
4,879
74,479
7,933
197,389
241,508
2,849
232,655
4,844
481,856
1,688,989
217,745
26,485
27,784
226
272,240
157,319
5,118
14,038
160
176,635
46,494
3,888
41,748
1,852
93,982
542,857
Variance
Favorable
Unfavorable)
50,332
7,011)
10,655)
1,837
34,503
3,707
2,971
5,093)
18,968
20,553
7,025
4,101
13,537)
4,844)
7,255)
47,801
29,761
9,515
5,991
2,274
47,541
43,770)
182
6,362
1,840
35,386)
50
1,012
13,033)
1,248
10,723)
1,432
CITY OF SEWARD
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (CON'T.)
BUDGET AND ACTUAL
Year ended June 30, 1986
EXPENDITURES
Parks and recreation
Personal services
Supplies
Other services and charges
Capital outlays
Total parks and recreation
Total expenditures
EXCESS OF REVENUES AND OTHER SOURCES OVER
UNDER) EXPENDITURES AND OTHER USES
FUND BALANCE, beginning of year
FUND BALANCE, end of year
Bu_ dget
165,964
6,705
52,955
2,275
227,899
3,999,983
2,133,659
82.133.659
56-
Actual
153,161
6,738
37,348
1,912
199,159
3,906,320
Variance
Favorable
Unfavorable)
12,803
33)
15,607
363
28,740
93,663
1,535,782 -
2,133,659 -
3,669.441 81.535.792
CAPITAL PROJECTS FUNDS
Capital Projects Funds are established to account for the resources
expended to acquire assets of a relatively
permanent nature. These funds
evolved from the need for special accounting for bond proceeds, grants
and contributions for the acquisition of capital assets.
Capital Projects 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 projects fund revenue, that
their requirements regarding the use of the revenue were fully satisfied.
SVAC Ambulance- To account for the purchase of a new ambulance
and related emergency equipment. Funds provided by the City.
Gateway Subdivision - To account for the costs of providing water and
sewer facilities to a new subdivision currently
under development. Funds
provided by the City.
Community Center - To account for the costs of planning,
site
selection, and conceptual design of a combination senior citizen /com-
munity activity center. Funds provided by a state grant.
Nash Road Boat Harbor Expansion - To account for the costs of a
feasibility study and the conceptual design of a new, one thousand slip,
boat harbor. Funding provided by a state grant.
Boat Harbor Improvements - To account for design costs of a new,
custom built, marine emergency vessel. The vessel, expected to be forty -
five feet in length, will provide seaborne fire protection as well as
search and rescue capabilities.
This fund also accounts for the costs
of upgrading several of the floating piers in the existing small boat harbor.
Funded jointly by the state and City.
Fire Truck - To account for the purchase of a new 1500 gallon per minute
pumper truck. Funded jointly by the City and a Community Block Development
Grant.
4th Avenue Ferry Dock - To account for improvements to the 4th Avenue
Dock. Funded by the State.
57-
CAPITAL PROJECTS FUNDS
Radio Translator - To account for the costs of a radio translator
capable of receiving and rebroadcasting the FM signal of the Anchorage
public radio station. Funded by a state grant.
Airport Master Plan - To account for the cost of a long range
development plan for the Seward airport. Funds provided by a state
grant.
Marine Industrial Park - To account for the costs of the various
phases of Seward's marine industrial center. The center combines a
certified, 3000 DWT, synchrolift with over 100 acres of industrial up-
lands. The City is now in the process of marketing the facility to
potential lessees interested in operating a ship repair business. The
center became operational in June, 1985. Funding provided primarily
by state grants, supplemented by City funding.
Other: To account for miscellaneous capital improvement projects.
Financing is provided primarily by State grants.
1 -58-
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEETS
June 30, 1986
With comparative totals for June 30, 1985
ASSETS
Due from other funds
Grants receivable
Accounts receivable
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts and contracts
payable
Due to other funds
Revenues received in
advance of con-
struction
Bid deposits
Total liabilities
FUND BALANCES (DEFICITS)
Unreserved:
Undesignated
Total liabilities
and fund balances
22 $ - $ - $ - $
1,166 - -
756,998 65,682 3,800
22 1,166 756,998 65,682 3,800
10,496 7,043 - -
10,518 $8,209 $756,998 $65,682
59-
3,800
Boat
Gateway Commu- Boat Harbor
Sub- nity Harbor Improve- Radio
division Center Expansion ments Translator
4,046 756,998 65,682 3,800
8,209
6,472
10,518 8,209 756,998 65,682 3,800
22 $ - $ - $ - $
1,166 - -
756,998 65,682 3,800
22 1,166 756,998 65,682 3,800
10,496 7,043 - -
10,518 $8,209 $756,998 $65,682
59-
3,800
4th Marine
Ave. Industrial Totals
Dock Other Park 1986 1985
9,576 $ 13,911 $ 854,013 $2,091,261
7,375 4,250 5,322 25,156 117,550
165,177 - 171,649 -
7,375 $179,003 $ 19,233 $1,050,818 $2,208,811
18 $ 68,317 $ 68,357 $ 149,436
7,375 162,809 60,365 231,715 4,250
9,576 4,697 840,753 1,106,842
6,600 - 6,600 -
7,375 179,003 133,379 1,147,425 1,260,528
114,146) (96,607) 948,283
7,375 $179,003 $ 19,233 $1,050,818 $2,208,811
If
61-
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year ended June 30, 1986
With comparative totals for June 30, 1985
Commu- Boat 4th
SVAC Gateway nity Harbor Fire Ave.
Ambulance Subdivision Center Expansion Truck Dock
REVENUES
State grants 8,209 157,455 69,200 147,500
Local sources 14,000
Total revenues 14,000 8,209 157,455 69,200 147,500
EXPENDITURES
Construction
Architect, en-
gineering and
all other 38 214,445 1,687 157,455 155 147,500
Land, buildings
and equipment 883 149,099
Total expendi-
ditures 921 214,445 1,687 157,455 149,254 147,500
Excess of
Revenues Over
Under) Expen-
ditures 921) 200,445) 6,522 80,054)
OTHER FINANCING
SOURCES
Operating transfers
in (out) 506) 59,318 862)
Excess of Revenues
and Other Sources
Over (Under)
Expenditures 1,427) 141,127) 6,522 80,916)
FUND BALANCES
beginning of year 1,427 151,623 521 80,916
FUND BALANCES,
DEFICITS)
end of year 10,496 7,043
61-
Airport Marine
Master Industrial Totals
Plan Other Park 1986 1985
4,596 175,408 5,322 567,690 893,219
268,573 282,573 8,808)
4,596 443,981 5,322 850,263 884,411
50,000 50,000 4,139,475
4,596 421,764 755,446 1,703,086 1,423,505
149,982 114,146
4,596 471,764 755,446 1,903,068 5,677,126
27,783) 750,124) 1,052,805) 4,792,715)
92,811) 42,776 7,915 2,864,556
120,594) 707,348) 1,044,890) 1,928,159)
120,594 593,202 948,283 2,876,442
114,146) 96,607) 948,283
62-
CITY OF SEWARD
ALL CAPITAL PROJECT FUNDS
PROJECT TO DATE - SCHEDULE OF CONSTRUCTION PROJECTS
Beginning of Projects to June 30, 1986
TOTAL PROJECT
AUTHORIZATION
REVENUES
State grants
Local sources
Total revenues
TRANSFERS FROM
OTHER FUNDS
Total revenues
and transfers
EXPENDITURES
Construction
Architect, engineer-
ing and all other
Land, buildings and
equipment
Total expenditures
17,250
17,250
58,064 $ 177,468
58,064 177,468
76,614 1,136,749 8,400 -
9,318
9,318
76,614 $1,153,999 $ 66,464 $ 177,468 $ 9,318
643,962 $ 12,154 $ - $ 9,318
1,029 490,541 47,267 177,468 -
75,585 9,000 - - -
76,614 $1,143,503 $ 59,421 $ 177,468 $ 9,318
63-
Boat
Boat Harbor
SVAC Gateway Community Harbor Improve -
Ambulance Subdivision Center Expansion ments
76,120 $1,153,999 $258,400 $1,996,400 112,603
17,250
17,250
58,064 $ 177,468
58,064 177,468
76,614 1,136,749 8,400 -
9,318
9,318
76,614 $1,153,999 $ 66,464 $ 177,468 $ 9,318
643,962 $ 12,154 $ - $ 9,318
1,029 490,541 47,267 177,468 -
75,585 9,000 - - -
76,614 $1,143,503 $ 59,421 $ 177,468 $ 9,318
63-
4th Airport Marine
Radio Ave. Master Industrial
Fire Truck Translator Dock Plan Other Park
185,926 $42,132 $147,500 33,262 3,134,520 $17,119,418
105,000 $34,200 $147,500 $30,000 $2,375,408 $10,090,450
271,099 18,577
105,000 34,200 147,500 30,000 2,646,507 10,109,027
80,064 4,132 - 3,262 393,835 4,296,974
185,064 $38,332 $147,500 $33,262 $3,040,342 $14,406,001
34,200 $ - $25,404 $2,550,312 $ 9,607,928
155 4,132 147,500 7,858 490,030 4,912,219
184,909 - - - - -
185,064 $38,332 $147,500 $33,262 $3,040,342 $14,520,147
64-
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
MARINE INDUSTRIAL PARK
COMBINING BALANCE SHEET
June 30, 1986
With comparative totals for June 30, 1985
ASSETS
Due from other funds
Grants receivable
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts and contracts payable
Due to other funds
Revenues received in advance of construction
Total liabilities
FUND BALANCES (DEFICITS)
Undesignated
Total liabilities and fund balances
65-
State Claim
Ship Grant Contingency
Lift Ii 8 -535 II
34 $ - $ -
5,322 -
5,322 $ -
34 $ -- $ 54,406
625 59740
4,697 -
34 5,322 114,146
114,146)
34 $5,322 $ -
1
1
1
1
1
i
1
1
1
1
1
1
1
1
1
State
Grant Totals
8 -611 1986 1985
13,877 $ 13,911 $678,254
5,322 -
13,877 $ 19,233 $678,254
13,877 $ 68,317 $ 85,052
60,365 -
4,697 -
13,877 133,379 85,052
114,146) 593,202
13,877 $ 19,233 $678,254
O
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
MARINE INDUSTRIAL PARK
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year ended June 30, 1986
With comparative totals for June 30, 1985
REVENUES
State grants
Local sources
Total revenues
EXPENDITURES
Construction
Architect, engineering and all other
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Operating transfers in (out)
Excess of revenues and other sources (uses)
over (under) expenditures
FUND BALANCES (DEFICIT), beginning of year
FUND BALANCES (DEFICITS), end of year
67-
Claim
Rails & Contingency
Cradles II
5,322 $
5,322
5,322 714,556
5,322 714,556
714,556)
615,816
98,740)
15,406)
114,146)
State
2,559,241)
593,202 3,152,443
Ship Grant Transfer Totals
Lift II 8 -611 Pit Mitigation 1986 1985
5,322
15,810)
5,322 15,810)
2,823,487
4,989 - 30,579 755,446 1,086,662
4,989 - 30,579 755,446 3,910,149
4,989) 30,579) 750,124) 3,925,959)
274,861) 53
279,850) 53
279,850 (53)
153,056) (145,176)
153,056) (175,755)
153,056 175,755
68-
42,776 1,366,718
707,348) 2,559,241)
593,202 3,152,443
114,146) 593,202
CITY OF SEWARD
MARINE INDUSTRIAL PARK
PROJECT TO DATE - SCHEDULE OF CONSTRUCTION PROJECTS
Beginning of Projects to June 30, 1986
State Claim
Rails Grant Contingency
Cradles 8 -535 II
TOTAL PROJECT AUTHORIZATIONS $2,106,000 $3,082,347 $1.500.000
REVENUES
State grants $ 5,322 $4,001,128 $ -
Local sources - 9,450 5,517
Total revenues $ 5,322 4,010,578 5,517
TRANSFERS FROM (TO) OTHER FUNDS - (928,231) 1,456,066
Total revenues and transfers $ 5,322 $3,082,347 $1,461,583
EXPENDITURES
Construction $ - $1,628,350 $ -
Architect, engineering and all other 5,322 1,453,997 1,575,729
Total expenditures $ 5,322 $3,082,347 $1,575,729
69-
State
Ship Grant
Lift 11 8 -611
659,750 $7,443,841
6,084,000
3,610
6,087,610
384,889 1,356,284
A184.889 57.441-894
282,082 5,799,798
102,807 1,644,096
384,889 7,443,894
Transfer
Pit
2,077,480
1,923,142
1,923,142
1,876,218
46,924
G1 Q 147
70-
Mitigation Total
250,000 $17,119,418
10,090,450
18,577
10,109,027
104,824 4,296,974
104,824 $14,406,001
21,480 $ 9,607,928
83,344 4,912,219
104,824 $14,520,147
SPECIAL ASSESSMENT FUNDS
The Special Assessment Funds were established to account for the
collection of special assessments levied against properties which bene-
fited from the construction of improvements financed by enterprise fund
moneys. The proceeds from collection of special assessments are trans-
ferred to the water /sewer fund in payment of the loan.
Usually the total of the special assessment is so large that the
fund cannot expect to collect in a single installment the entire amount
of the needed contribution from each property owner benefited. Accord-
ingly, the option of paying the assessment in annual installments over
a specified period is granted.
71-
CITY OF SEWARD
SPECIAL ASSESSMENT FUNDS
COMBINING BALANCE SHEET
June 30, 1986
With comparative totals for June 30, 1985
ASSETS
Special assessments receivable
Current
Delinquent
Deferred
Total assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Deferred revenues
Bonds payable
Total liabilities
FUND BALANCES (DEFICITS)
Unreserved
Total liabilities and
fund balances
Jesse
Lee
Bayview Heights
1,158 $ 11,284
435
3,822 27,145
4,980 $ 38,864
72-
3,822 $ 27,145
4,980 38,864
8,802 66,009
Totals
1986 1985
12,442
435
30,967
43,844
30,967
43,844
74,811
9,334
378
47,603
57,315
47,603
57,315
104,918
3,822) (27,145) (30,967) (47,603)
4,980 $ 38,864 $ 43,844 57,315
CITY OF SEWARD
SPECIAL ASSESSMENT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND .CHANGES IN FUND BALANCES
Year ended June 30, 1986
With comparative totals for year ended June 30, 1985
REVENUES
Special assessments levied
Interest and penalties
Total revenues
OTHER FINANCING USES
Operating transfers out
Excess of revenues over
under) other uses
FUND BALANCES (DEFICITS), beginning
of year
FUND BALANCES (DEFICITS), end of year
Bayview
1,625
487
2,112
487
Jesse
Lee Totals
Heights 1986 1985
15,011 $ 16,636 $ 17,146
3,156 3,643 6,873
18,167 20,279 24,019
3,156 3,643 6,873
1,625 15,011 16,636
5,447) (42,156) (47,603)
3,822) $(27,145) $(30,967)
73-
17,146
64,749)
47,603)
ENTERPRISE FUNDS
Enterprise funds are established to account for the financing
of self - supporting activities of governmental units which render
services to the general public on a user charge basis. Enterprise
funds are maintained on the accrual basis of accounting.
Electric Fund - to account for the provision of electricity
to the residents of the City and certain residents of the Kenai
Peninsula Borough. All activities necessary to provide electrical
services are accounted for in this fund, including, but not limited
to, administration, operations, maintenance, financing and related
debt service, and billing and collection.
Water and Sewer Fund - to account for the provision of water
and sewer services to the residents of the City and certain
residents of the Kenai Peninsula Borough. All activates necessary
to provide such services are accounted for in this fund, including,
but not limited to, administration, operations, maintenance,
financing and related debt service, and billing and collection.
Harbor Fund - to account for the provision of harbor services
to the public on Resurrection Bay. All activities necessary to
provide such services are accounted for in this fund, including,
but not limited to, administration, operations, maintenance,
financing and related debt service, and billing and collection.
Hospital Fund - To account for the provision of hospital services
to the public.
74-
CITY OF SEWARD
COMBINING BALANCE SHEET
ALL PROPRIETARY FUND TYPES
June 30, 1986
With comparative totals for June 30, 1985
ASSETS
CURRENT ASSETS
Cash
Cash, restricted
Cash with fiscal agent
Receivables
Accounts
Allowance for uncollectibles
Accounts receivable, net
Accrued interest
Grants
Prepaids
Due from other funds
Inventory
Total current assets
PROPERTY, PLANT AND EQUIPMENT
Less accumulated depreciation
Property, plant and equipment, net
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts and contracts payable
Customer deposits
Deferred revenues
Due to other funds
Accrued liabilities
Current maturities of bonds payable
Total current liabilities
OTHER LIABILITIES
Bonds payable, excluding current
maturities
Total liabilities
FUND EQUITY
Contributed capital
Less: amortization of contributions
in aid of construction
Retained earnings (deficit)
Total fund equity
75—
Electric Water /Sewer ,
Fund Fund
67,235
17,000)
50,235
54,563
859,199
262,736
1,300,784
23,068,926
3,077,781)
19,991,145
21,291.929
1,572,105
109,865
1,976
166,114
220,000
2,070,060
6,302,000
8,372,060
11,819,149
179,784)
1,280,504
12,919,869
21,291,929
91
84)
83,378
43,137
126,522
12,376,248
1,833,256)
10,542,992
10,669,514
13,495
1,273,419
16,343
70,000
1,373,257
747,156
2,120,413
10,710,194
1,420,308)
740,784)
8,549,102
10,669,514
200
106,168
41,000)
65,168
506,106
571,474
1,313,223
1,471,315
19,782
35,484
12,000
67,266
67,266
793,732
264,461)
1,471,315
Hospital
Fund
205,506 $
501,561
158,321)
343,240
22,830
670,364
1,039,148
506,135)
533,013
51.203.377
102,780
94,875
197,655
Totals
1986 1985
675,055
216,405)
458,650
137,941
22,830
1,365,305
404,661
2,669,144
37,797,545
5,830,554)
31,966,991
SIG_616.119
1,708,162
109,865
1,976
1,273,419
312,816
302,000
3,708,238
7,049,156
197,655 10,757,394
1,005,721
1,005,721
51.903.177
23,323,075
1,864,553)
2,420,219
23,878,741
S11&_636.115
76-
200
5,000,000
71,866
272,999
37,000)
235,999
156,488
1,891,166
410,772
302,447
8,068,938
29,667,124
4,577,547)
25,089,577
511.158.515
958,226
163,395
646,140
2,449,090
267,918
277,000
4,761,769
7,337,685
12,099,454
22,457,186
1,372,375)
25,750)
21,059,061
S33.158.515
CITY OF SEWARD
ALL ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
Year ended June 30, 1986
With comparative totals for year ended June 30, 1985
77-
Electric Water /Sewer
Fund Fund
OPERATING REVENUES
Residential sales 1,225,980 303,252
Commercial sales 1,057,026 137,671
Industrial 188,858 23,025
Governmental sales 804,169 65,860
City of Seward sales 306,507 19,847
Moorage
Patient service revenues, net
Miscellaneous 350,174 53,610
Total operating revenues 3,932,714 603,265
OPERATING EXPENSES
Power 1,491,797
Distribution 173,620 102,538
Pumping 102,256
Supplies and maintenance
Personnel services 10,718
Patient and general service
Administration and general 919,834 257,009
Depreciation 288,776 385,422
Total operating expenses 2,874,027 857,943
Operating income (loss) 1,058,687 254,678)
NON - OPERATING REVENUES (EXPENSES)
Interest 159,955 82,374)
Bond interest 234,407) 59,787)
Other
Fiscal agent fees 500)
Contributions
Total non - operating revenues (expenses) 74,952) 142,161)
Income (loss) before operating transfers 983,735 396,839)
OPERATING TRANSFERS IN (OUT) 20,643
Net income (loss) 983,735 376,196)
TRANSFERS ON CONTRIBUTED ASSETS 61,495 385,173
Increase (decrease) in retained earnings 1,045,230 8,977
RETAINED EARNINGS (DEFICIT), beginning of year, restated 235,274 749,761)
RETAINED EARNINGS (DEFICIT), end of year 1,280,504 740,784)
77-
1
1
Harbor Hospital Totals
Fund Fund 1986 1985
1,529,232 1,291,427
1,194,697 725,624
211,883 352,835
870,029 585,994
326,354 217,359
493,863 493,863 501,947
1,491,333 1,491,333
298,995 60,667 763,446 634,514
792,858 1,552,000 6,880,837 4,309,700
1,491,797 1,540,889
276,158 433,091
102,256 97,545
220,427 231,145 161,386
296,375 296,375 278,544
1,187,166 1,187,166
155,618 654,297 1,986,758 1,219,511
74,282 58,825 807,305 670,407
746,702 1,900,288 6,378,960 4,401,373
46,156 348,288) 501,877 91,673)
134,130 7,636 219,347 402,097
986) 295,180) 571,408)
10 18,323 18,333 89
500) 500)
471,772 471,772
133,154 497,731 413,772 169,722)
179,310 149,443 915,649 261,395)
20,643 6,939
179,310 149,443 936,292 254,456)
45,512 492,180 427,694
224,822 149,443 1,428,472 173,238
649,956 856,278 991,747 198,988)
874,778 1,005,721 2,420,219 25,750)
78-
CITY OF SEWARD
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITICN
ALL ENTERPRISE FUNDS
Year ended June 30, 1986
With comparative totals for year ended June 30, 1985
SOURCES OF WORKING CAPITAL
Operations
Net income (loss)
Item not requiring working capital -
depreciation
loss on sale of equipment
Working capital provided by operations
Proceeds from long -term debt
USES OF WORKING CAPITAL
Acquisition of property, plant and equipment,
net of contribution --in -aid
Current bond maturities
Removal of Rose Memorial Fund
Increase (decrease) in working capital
ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL
Increase (decrease) in current assets
Cash
Cash with fiscal agent
Receivables
Accounts, net
Accrued interest
Grants
Prepaids
Due from other funds
Inventory
Increase (decrease) in current liabilities
Accounts and contracts payable
Customer deposits
Deferred revenues
Due to other funds
Accrued liabilities
Current maturities of bonds payable
Increase (decrease) in working capital
79-
Electric
Fund
983,735
288,776
1,272,511
1,272,511
5,813,568
220,000
6,033,568
4,761,057)
5,000,000)
2,185
79,889)
156,488)
1,568,664)
859,199
3,608
5,940,049)
664,373
53,530)
644,164)
1,114,929)
49,742)
19,000
1,178,992)
4.761.057)
Water /Sewer
Fund
376,196)
385,422
9,226
9,226
107,626
56,530
164,156
154,930)
40,210)
184,561)
182)
224,953)
14,235)
60,742)
46)
5,000
70,023)
154,930)
Harbor Hospital Totals
Fund Fund 1986 1985
179,310 149,443 936,292 254,456)
74,282 61,193 809,673 670,407
282 282
253,592 210,918 1,746,247 415,951
5,000,000
253,592 210,918 1,746,247 5,415,951
144,577 30,357 6,096,128 156,609
12,000 1,228 2895758 253,636
2,111 2,111 -
156,577 $ 33,696 $ 6,387,997 410,245
97,015 $177,222 $(4,641,750) $5,005,706
105,033 4,894,967) 5,000,000
2,185 3,323
490) 35,128 85,461) 65,677
156,488) 156,488
1,753,225) 1,514,839
4,853) 4,853)
95,334 954,533 291,426
33,698 37,124 105,058
94,844 169,006 5,901,152) 7,136,811
2,982) 12,509) 634,647 944,352
53,530) 108,486
644,164) 646,140
1,175,671) 283,597
189) 5,497 44,480) 58,530
1,000 1,204) 23,796 90,000
2,171) 8,216) 1,259,402) 2,131,105
S 97.015 177.222 4.641.750) 5.005,706
80-
L
1
u
i
1
1
GENERAL FIXED ASSETS GROUP OF ACCOUNTS
The General Fixed Assets Group of Accounts are established for
controlling the City's sizeable investment in fixed assets which are
tangible assets of significant value having a life which extends
beyond a year. No depreciation is provided on such assets. This
control also allows establishing custodial responsibility for the
assets.
The investment in fixed assets of the Enterprise Funds is
accounted for in those proprietary funds.
81-
CITY OF SEWARD
SCHEDULE OF GENERAL FIXED ASSETS BY SOURCES
June 30, 1986
With comparative totals for June 30, 1985
GENERAL FIXED ASSETS
Land, restated
Buildings
Improvements other than buildings
Equipment
Total general fixed assets
INVESTMENTS IN GENERAL FIXED ASSETS FROM
Prior years data
Capital projects funds
State grants
General fund revenues
Federal revenue sharing
Total investment in general
fixed assets
82-
1986 1985
19,217,362 19,410,851
6,529,112 6,527,114
38,070,008 28,213,191
1,028,539 928,137
64,845,021 $55,079,293
54,051,100 $54,837,478
6,238,706 7,206
4,539,740 219,134
15,475 15,475
864.845.021 S55.079.299
1
1
1
1
1
1
1
1
1
1
1
1
1
1
CITY OF SEWARD
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - EQUIPMENT
BY FUNCTION AND ACTIVITY
Year ended June 30, 1986
GENERAL GOVERNMENT
Mayor and Council
City Manager
City Clerk
Finance
Economic development
General service
Total general government
PUBLIC SAFETY
Police
Jail
Animal control
Fire
Engineering
Total public safety
PUBLIC WORKS
Streets
Shop
Municipal building
Television
Ship lift
Total public works
PARKS AND RECREATION
Recreation
Teen Center
Total parks and recreation
Total equipment
Equipment Equipment
June 30, 1985 Additions Reductions June 30, 1986
12,351 368 12,719
40,361 238 40,599
23,224 780 22,444
102,039 5,154 107,193
26,065 1,370 335 27,100
32,885 778 33,663
236,925 7,908 1,115 243,718
137,663 170 137,833
19,917 125 20,042
12,360 1,115 1,496 11,979
121,737 81,799 203,536
67,384 5,219 72,603
359,061 88,428 1,496 445,993
260,450 226 260,676
6,724 160 6,884
2,100 1,851 120 3,831
8,462 1,606 10,068
2,483 2,483
280,219 3,843 120 283,942
38,835 1,978 40,813
13,097 976 14,073
51,932 2,954 54,886
928,137 103,133 2,731 1,028,539
83-
GENERAL LONG -TERM DEBT GROUP OF ACCOUNTS
This group of accounts records the unmatured principal of long -term
general obligation bonds and the long -term portion of accrued annual leave
payable from general revenues and backed by the full faith and credit of
the City.
1
84- 1
CITY OF SEWARD
SCHEDULE OF GENERAL LONG -TERM DEBT
AMOUNT AVAILABLE AND TO BE PROVIDED FOR THE
PAYMENT OF GENERAL LONG -TERM DEBT
June 30, 1986
With comparative totals for June 30, 1985
Amount to be provided in future years
excluding amounts allocated to Harbor,
Electric and Water /Sewer Enterprise Funds
GENERAL LONG -TERM DEBT PAYABLE
Accrued annual leave
General obligation bonds payable
Less - Bonds allocated to Harbor,
Electric and Water /Sewer
Enterprise Funds
85-
1986
S 118.660
138,660
7,258,000
7,258,000
1985
182,828
172,828
7,479,000
CITY OF SEWARD
SCHEDULE OF BONDED INDEBTEDNESS - ALL FUNDS
June 30, 1986
GENERAL BONDED DEBT
1962 Water Improvement
1965 Street Improvement
1967 Harbor Improvement
1976 Water and Sewer
1980 Electric Improvement
1984 Electric Improvement
Total General Obligation
Bonds (includes $7,258,000
of bonds outstanding allo-
cated to Enterprise Funds)
ACCRUED ANNUAL LEAVE
ELECTRIC FUND
1957 Electric Revenue Bonds
Total Bonded Indebtedness
Interest Date of
Rate Date of Issue Maturity
3.375% September 1, 1962 1974 - 1991
3.375% September 1, 1965 1967 - 1985
4.125% October 11, 1967 1968 - 1987
8.00% to
7.25% Tune 1, 1976 1977 - 1996
7.00% August, 1980 1982 - 2001
12.50% to
9.50% October 19, 1984 1985 - 2004
5.50%
86-
April 15, 1957 1973 - 1987
Bonds
Issued
226,000
135,000
162,000
1,200,000
1,700,000
5,000,000
8,423,000
400,000
8,823,000
Outstanding
June 30,
1985
76,000
10,000
23,000
850,000
1,520,000
5, 000,000
7,479,000
172,828
203,000
7,854,828
Additions
retirements)
during
the year
10,000)
10,000)
11,000)
55,000)
55,000)
80,000)
221,000)
34,168)
66,000)
321,168)
87-
Outstanding
June 30,
1986
66,000
12,000
795,000
1,465,000
4,920,000
7,258,000
138,660
137,000
7,533,660
Interest
Expense
2,098
187
986
57,689
114,706
528,977
5:
704,643
9,850
714,493
1
1
0
PANT III
STATISTICAL SECTION
CITY OF SEWARD
GENERAL FUND EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
UNAUDITED)
1) Debt Service expenditures recorded in Debt Service Fund.
89-
General Public Public Parks and Debt
Year Government Safety Works Recreation Service Total
1976 -77 566,296 371,290 235,301 24,603 153,638 1,351,128
1977 -78 786,162 506,797 258,801 10,937 149,600 1,712,297
1978 -79 653,722 580,243 249,035 34,842 139,954 1,657,796
1979 -80 773,588 677,821 397,951 36,449 25,952 1,911,761
1980 -81 988,845 811,165 318,674 41,173 38,337 2,198,194
1981 -82 1,652,099 880,760 433,169 130,451 38,038 3,144,517
1982 -83 1,518,263 1,259,195 595,628 184,971 22,119 3,580,176
1983 -84 1,353,609 1,362,299 546,567 311,234 1) 3,573,709
1984 -85 1,641,257 1,594,281 586,308 256,883 4,078,729
1985 -86 1,475,315 1,688,989 542,857 199,159 3,906,320
1) Debt Service expenditures recorded in Debt Service Fund.
89-
CITY OF SEWARD
GENERAL FUND REVENUES BY SOURCE
LAST TEN FISCAL YEARS
UNAUDITED)
Inter
Governmental
333,713
448,465
356,222
330,284
617,834
846,732
1,366,788
1,274,009
1,160,034
798,506
Charges
for
Services
137,613
219,764
289,180
297,860
480,028
2,686,512
2,558,494
1,983,673
1,918,817
2,693,839
Licenses
and
Year Taxes Permits
1976 -77 506,089 18,700
1977 -78 487,280 12,577
1978 -79 537,910 11,384
1979 -80 542,214 8,945
1980 -81 574,070 17,249
1981 -82 356,047 19,543
1982 -83 346,153 65,621
1983 -84 499,542 69,355
1984 -85 597,983 62,979
1985 -86 799,563 187,393
Inter
Governmental
333,713
448,465
356,222
330,284
617,834
846,732
1,366,788
1,274,009
1,160,034
798,506
Charges
for
Services
137,613
219,764
289,180
297,860
480,028
2,686,512
2,558,494
1,983,673
1,918,817
2,693,839
91-
Payment Rents
Fines and in Lieu Surplus and
Forfeitures of Taxes Sales Leases Miscellaneous Total
14,815 15,000 23,693 75,872 326,240 1,451,735
4,251 70,000 70,062 134,413 441,967 1,888,779
6,527 76,143 147,075 155,478 321,389 1,901,308
3,613 140,874 138,079 329,294 1,791,163
11,429 154,672 20,787 227,170 151,108 2,254,347
11,976 196,049 3,249 173,188 808,763 5,102,059
17,608 233,315 6,145 193,066 460,429 5,247,619
12,027 331,438 264,955 207,234 757,580 5,399,813
16,122 388,467 2,229 245,040 568,938 4,960,609
9,152 472,813 2,043 255,529 198,641 5,417,479
91-
CITY OF SEWARD
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
UNAUDITED)
1) Litigation settled with several oil companies in this year.
Back taxes were then collected.
2) Includes some reassessment collections not included in original tax levy.
Source: Kenai Peninsula Borough
92-
Total Percent Delinquent
Tax Current Tax of Levy Tax
Year Lev- Collections Collected Collections
1976 -77 (1) 347,327 299,002 86.1 207,087
1977 -78 506,533 466,028 92,0 21,252
1978 -79 (2) 486,633 459,586 94.4 76,661
1979 -80 510,106 493,798 96.8 46,618
1980 -81 549,417 526,145 95.8 46,094
1981 -82 (2) 312,199 260,729 83.5 95,318
1982 -83 239,757 229,177 95.6 7,419
1983 -84 313,141 303,695 97.0 4,302
1984 -85 323,749 313,392 96.8 4,634
1985 -86 571,294 536,059 93.8 3,334
1) Litigation settled with several oil companies in this year.
Back taxes were then collected.
2) Includes some reassessment collections not included in original tax levy.
Source: Kenai Peninsula Borough
92-
1
1
1
1
1
1
1
1
1
1
1
1
93-
Outstanding
Total Tax Delinquent
Collections Outstanding Taxes
Total Tax As a Percent Delinquent As a Percent
Collections of Levy Taxes of Total Lev
506,089 145.7 48,325 13.9
487,280 96.2 40,505 8.0
536,247 110.2 27,047 5.6
540,416 105.9 16,308 3.2
572,239 104.2 23,272 4.2
356,047 114.0 51,470 16.5
236,587 98.7 16,805 7.0
307,997 98.3 18,640 5.9
318,026 98.2 54,438 16.8
539,393 94.4 52,253 9.1
93-
Year
1976 --77
1977 -78
1978 -79
1979 -80
1980 -81
1981 -82
1982 -83
1983 -84
1984 -85
1985 -86
CITY OF SEWARD
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
UNAUDITED)
Real Property
Assessed
Estimated
Assessed Actual
Value Value
16,597,790 16,371,180
17,827,710 19,153,287
26,590,950 30,164,030
27,891,100 36,847,800
37,540,850 48,668,600
38,884,425 41,796,200
37,817,000 43,917,949
63,395,090 66,015,400
60,596,630 64,748,500
77,827,300 85,454,400
Source: "Alaska Taxable ", State of Alaska
94-
Personal Propert
Estimated
Assessed Actual
Value Value
8,928,693 8,928,693
8,987,150 8,987,150
10,162,660 10,162,660
13,116,959 13,117,000
20,364,325 20,364,300
24,950,050 29,565,200
16,369,047 19,564,285
15,493,670 21,587,900
20,743,586 20,743,586
56,716,200 56,716,200
Total
Ratio of Total
Assessed
to Total
Estimated
Actual Value
100.90
95.29
91.14
82.07
83.88
89.45
85.36
90.05
95.10
94.64
95-
Estimated
Assessed Actual
Value Value
25,526,483 25,299,875
26,814,860 28,140,437
36,753,610 40,326,690
41,008,059 49,964,800
57,905,175 69,032,900
63,834,475 71,361,400
54,186,047 63,482,234
78,888,760 87,603,300
81,340,216 85,492,086
134,543,500 142,170,600
Ratio of Total
Assessed
to Total
Estimated
Actual Value
100.90
95.29
91.14
82.07
83.88
89.45
85.36
90.05
95.10
94.64
95-
CITY OF SEWARD
PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS
PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
UNAUDITED)
Source: (1) City Mill Levy
2) Kenai Peninsula Borough
96-
Seward City
Year General. Fund(1) Borough(2) Total
1976 -77 20.000 5.000 25.000
1977 -78 18.000 5.000 23.000
1978 -79 13.500 4.500 18.000
1979 -80 13.500 2.500 16.000
1980 -81 12.500 2.500 15.000
1981 -82 7.000 1.750 8.750
1982 -83 7.000 1.250 8.250
1983 -84 5.000 2.500 7.500
1984 -85 5.000 1.750 6.750
1985 -86 5.000 1.750 6.750
Source: (1) City Mill Levy
2) Kenai Peninsula Borough
96-
CITY OF SEWARD
SPECIAL ASSESSMENT COLLECTIONS
Since May 29, 1979 (Inception)
UNAUDITED)
City ordinance No. 473, enacted and adopted May 29, 1979
provides for the levy and assessed amounts.
97-
Ratio of
Current Current Collections Total
Assessments Assessments to Outstanding
Fiscal Years Due Collections Amount Due Assessments
May 29, 1979
Assessed) 247,023
1978 -79 34,940 6,831 19.55 240,192
1979 -80 21,603 35,793 165.69 204,399
1980 --81 28,668 29,943 104.45 174,456
1981 -82 17,589 29,238 166.23 145,218
1982 -83 17,563 28,542 162.51 116,676
1983 -84 14,828 39,998 269.70 76,679
1984 -85 17,146 19,364 112.93 57,315
1985 -86 16,636 13,471 80.97 43,844
City ordinance No. 473, enacted and adopted May 29, 1979
provides for the levy and assessed amounts.
97-
CITY OF SEWARD
RATIO OF NET GENERAL BONDED DEBT
ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
UNAUDITED)
Source: (1) State of Alaska
2) Kenai Peninsula Borough
98-
Debt
Payable
f r om
Value Assessed Gross Enterprise
Year Population(1) In Thousands)(2) Bonded Debt Revenues
1976 -77 2,279 25,526 2,175,000 686,000
1977 -78 2,130 26,815 2,029,000 593,000
1978 -79 1,778 36,754 1,896,000 520,000
1979 -80 1,843 41,008 1,827,555 511,555
1980 -81 1,943 57,905 3,401,204 451,204
1981 -82 1,828 63,834 3,266,010 362,000
1982 -83 1,828 54,186 3,052,000 325,000
1983 -84 1,871 78,889 2,874,000 265,000
1984 -85 2,072 81,340 7,682,000 203,000
1985 -86 2,293 134,544 7,395,000 3.37,000
Source: (1) State of Alaska
2) Kenai Peninsula Borough
98-
1
1
1
1
1
1
1
1
1
Ratio
of Net
99-
Bonded Net
Net Debt to Bonded
Bonded Assessed Debt Per
Debt Value Capita
1,489,000 0583 653
1,436,000 0536 674
1,376,000 0374 774
1,316,000 0321 714
2,950,000 0509 1,518
2,904,010 0455 1,589
2,727,000 0503 1,492
2,609,000 0331 1,394
7,479,000 0919 3,610
7,258,000 0539 3,165
99-
LEGAL DEBT MARGIN
June 30. 1986
No debt limit mandated by law.
100-
1
1
CITY OF SEWARD
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 1986
UNAUDITED)
Percentage
Net Debt Applicable to
Jurisdiction Outstanding City of Seward
Kenai Peninsula Borough $175,645,000 3.4 (1)
Total overlapping debt 175,645,000
City of Seward 7,258,000 100.0000
Total direct debt 7,258,000
Total direct and
overlapping debt $182,903,000
Amount
Applicable to
Citv of Seward
5,971,930
5,971,930
7,258,000
7,258,000
13,229,930
1) Based upon ratio of City of Seward total assessed value (real and
personal property) to total assessed value of Kenai Peninsula Borough.
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INTENTIONALLY BLANK
1
t
Year
1976 -77
1977 -78
1978 -79
1979 -80
1980 -81
1981 -82
1982 -83
1983 -84
1984 -85
1985 -86
CITY OF SEWARD
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES
LAST TEN FISCAL YEARS
UNAUDITED)
Principal
52,000
53,000
51,000
16,275
11,350
12,194
11,377
9,000
9,000
10,000
Interest
101,638
96,600
88,954
9,677
26,987
25,844
10,742
881
544
188
Total
Debt
Service
153,638
149,600
139,954
25,952
38,337
38,038
22,114
9,881
9,544
10,188
102-
Total
General
Expenditures
1,351,128
1,712,297
1,657,796
1,911,761
2,198,194
3,144,517
3,580,176
4,078,729
4,061,313
3,906,320
Rat io of
Debt Service
to Total
General
Expenditures
11.37
8.74
8.44
1.36
1.74
1.21
62
27
23
26
CITY OF SEWARD
DEMOGRAPHIC STATISTICS
LAST TEN YEARS
UNAUDITED)
Source: (1) State of Alaska
2) U.S. Census
3) Kenai Peninsula Scbool System
4) Alaska Department of Labor
N/A - Not Available
103-
Per
Fiscal Capita Medium
Year ulation(1) Po Income(2) Age (2)
1976 -77 2,279 9,314 N/A
1977 --78 2,130 9,149 28.4
1978 -79 1,778 10,731 N/A
1979 -80 1,843 12,044 N/A
1980 -81 1,943 13,558 N/A
1981 -82 1,828 15,289 28,7
1982 -83 1,828 N/A N/A
1983 -84 1,871 N/A 28.6
1984 -85 2,072 N/A 28.7
1985 -86 2,293 N/A 28.7
Source: (1) State of Alaska
2) U.S. Census
3) Kenai Peninsula Scbool System
4) Alaska Department of Labor
N/A - Not Available
103-
Education
Level in
Years of Drivers
Formal School Unemployment Licenses
Schooling(2) Enrollment(3) Rate (4) Issued
N/A 468 9.8 936
N/A 451 11.5 974
N/A 457 13.5 1,147
N/A 448 13.6 1,165
N/A 450 11.4 1,186
N/A 472 13.4 1,417
N/A 468 15.9 737
N/A 471 14.9 945
N/A 565 N/A 1,022
N/A 583 N/A N/A
104-
CITY OF SEWARD
PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS
LAST TEN FISCAL YEARS
UNAUDITED)
N/A Not Available
Source: (1) Bank deposits from individual bank managers.
105-
Commercial Residential.
Construction Construction 1) Property
Number Number Bank Deposits Value
Year Of Units Value Of Units Value In Thousands) Total
1976 -77 N/A N/A 39 N/A 7,891 75,299,875
1977 -78 3 790,000 21 755,000 10,460 28,140,437
1978 -79 46 1,721,000 4 256,000 11,828 40,326,690
1979 -80 1 350,000 2 166,000 13,024 49,964,800
1980 -81 3 1,272,000 4 234,000 N/A 69,032,900
1981 -82 9 2,632,593 23 392,946 14,292 71,361,400
1982 -83 7 2,078,000 37 2,752,500 14,835 63,482,234
1983 --84 42 12,560,425 34 958,101 15,263 87,603,300
1984 -85 36 9,849,952 38 2,539,790 17,875 85,492,086
1985 -86 49 35,738,777 38 2,185,253 18,778 142,170,610
N/A Not Available
Source: (1) Bank deposits from individual bank managers.
105-
CITY OF SEWARD
LOCAL UNEMPLOYMENT RATE
ALL YEARS FOR WHICH INFORMATION IS AVAILABLE
UNAUDITED)
Notes: * ** Detailed information not available
1977 FY Pipeline Requirements
1978 FY High Fishing /Labor Force Dropped
1979 FY Labor Force Dropped
1982 FY Labor Force Drop /Employment Drop
Source: State Department of Labor
106-
Feb
14.2
14.1
16.0
17.0
12.8
17.8
21.1
22.8
Mar
9.0
15.6
16.5
12.9
13.9
16.8
19.9
21.2
Lpr May June
18.7 7.2 9.0
10.4 18.0 7.0
16.1 16.0 14.3
11.2 9.8 8.0
13.1 12.1 13.8
12.1 12.5 11.1
18.8 19.8 12.4
17.6 15.4 9.6
Annual
Year Average July Aug Sew Oct Nov Dec Jan
1976 -77 9.8 4.9* 3.9* 7.4 3.9* 13.1 10.7 15.5
1977 -78 11.5 7.6 4.4 5.1 9.5 16.5 16.7 13.4
1978 -79 13.5 7.7 7.9 9.2 12.1 13.8 14.3 ** 17.6
1979 -80 13.6 11.5 10.9 12.8 16.6 15.9 18.5 17.9
1980 -81 11.4 7.2 7.4 7.8 10.4 12.3 13.4 13.1
1981 -82 13.4 9.8 9.8 4.6* 13.8 15.6 16.5 20.4
1982 -83 15.9 8.5 8.5 9.8 16.0 17.0 16.4 22.8
1983 -84 14.9 9.6 8.1 10.5 13.0 16.1 15.5 20.7
1984 -85 9.6 9.2 7.6 12.5 14.7 14.9
1985 -86 11.1 11.2 11.4 12.7 14.7 16.1
Notes: * ** Detailed information not available
1977 FY Pipeline Requirements
1978 FY High Fishing /Labor Force Dropped
1979 FY Labor Force Dropped
1982 FY Labor Force Drop /Employment Drop
Source: State Department of Labor
106-
Feb
14.2
14.1
16.0
17.0
12.8
17.8
21.1
22.8
Mar
9.0
15.6
16.5
12.9
13.9
16.8
19.9
21.2
Lpr May June
18.7 7.2 9.0
10.4 18.0 7.0
16.1 16.0 14.3
11.2 9.8 8.0
13.1 12.1 13.8
12.1 12.5 11.1
18.8 19.8 12.4
17.6 15.4 9.6
Taxpayer
Keydril Company
Suneel Alaska Corp.
Rowan Drilling - U.S.
Seaway Express
Seward Fisheries
Individual
New Seward, Inc.
Gateway Ventures, Inc.
Kenai Lumber Co.
General Telephone
Co. of Alaska
CITY OF SEWARD
PRINCIPAL TAXPAYERS
June 30, 1986
UNAUDITED)
Type of Business
Oil Services
Coal Export
Oil Services
Barge Service
Fish Processing
Real Estate
Investments
Real Estate
Retail
Communications
1) Includes real and personal property.
Source: Kenai Peninsula Borough Tax Assessment
107-
1985
Assessed
Valuation(1)
8,942,174
8,902,355
6,000,000
3,762,668
2,947,126
2,771,900
2,453,600
2,020,900
1,366,601
Percentage
of Total
Assessed
Valuation
6.65%
6.61
4.46
2.80
2.19
2.06
1.82
1.50
1.02
1,152,970 0.86
40,320,294 29.97%
CITY OF SEWARD
MISCELLANEOUS STATISTICS
June 30, 1986
UNAUDITED)
Date of Incorporation June 1, 1912
Class Home Rule
Form of Government Council - Manager
Area, Square Miles 22
Miles of Street 26
Number of Street Lights 216
Population (July, 1984) 2,293
Fire Protection
Number of Stations 1
Number of Firemen and Officers
exclusive of volunteers) 2
Number of Volunteers 37
Fire Rating (ISO) 5
Police Protection
Number of Stations 1
Number of Policemen and Officers 8
Education
Attendance. Centers 2
Number of Students 583
Number of Teachers 48
Municipal Water Department
Number of Consumers 709
Average Daily Consumption, Gallons 2,200,000
Miles of Water Main NIA
Building Permits Issued 74
Recreation and Culture
Number of Parks 3
Number of Libraries 1
Number of Volumes 19,750
Employees
Classified Service 60
Exempt 2
Qualified Voters 1,301
108-