HomeMy WebLinkAbout1988CAFR1
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For The Fiscal Year Ended June 30, 1988
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COMPREHENSIVE ANNUAL
FINANCIAL REPORT
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CITY OF SEWARD, ALASKA
For The Fiscal Year Ended
June 30, 1988
HARRY E. GIESELER
MAYOR
MAX ROYLE
CITY MANAGER
PREPARED BY THE
DEPARTMENT OF FINANCE
ROBERT D. PEIRSON
DIRECTOR OF FINANCE AND
ADMINISTRATIVE SERVICES
PART I
INTRODUCTORY SECTION
COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF SEWARD, ALASKA
For the Fiscal Year Ended June 30, 1988
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Tableof Contents ............................................ 3 -5
Letter of Transmittal . . . . . .... ... ... . . .... ... . . . . . . .. ... .. . . . . . . 7 -13
List of Principal City Officials . . ... . ... . . ... ... . ... . .. . ............. 14
Organization Chart ............. ............................... 15
FINANCIAL SECTION
Auditor's Report ............................................. 19 -20
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and Account Groups ................. 22 -23
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types ........................ 24 -25
Statement of Revenues, Expenditures and Changes in Fund
Balance, Budget and Actual - General Fund ............. .............. 26
Combined Statement of Revenues, Expenses and Changes
in Retained Earnings, All Proprietary Fund Types - Enterprise Funds ............. 27
Combined Statement of Changes in Financial Position -
All Proprietary Fund Types - Enterprise Funds ......................... 28
Notes to Financial Statements ..... ............................... 29 -43
Combining and Individual Fund and Account Group Financial Statements and Schedules
General Fund
Balance Sheet ... ............................... ....... 46
Statement of Revenues, Expenditures and Changes
in Fund Balance, Budget and Actual ............................. 47 -50
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TABLE OF CONTENTS (cont.)
Special Revenue Funds Page
Combining Balance Sheet ...... ................... . . . . . . . . 52 -53
Combining Statement of Revenues, Expenditures and Changes in Fund Balances .... 54 -55
Capital Projects Funds
Combining Balance Sheet - All Capital Projects .. . . . . ..... . . . . . . . . . . . . 58 -59
Combining Statement of Revenues, Expenditures and Changes in Fund Balances .... 60-61
Project to Date - Schedule of Construction Projects ........... .... . . . . . . 62 -63
Seward Marine Industrial Center Combining Balance Sheet ....... , , . , . , , , 64 -65
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .. .. 66 -67
Project to Date - Schedule of Construction Projects ..................... 68 -69
Other Capital Projects Combining Balance Sheet ...................... 70 -71
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances. , ... 72 -73
Project to Date - Schedule of Construction Projects ...... . ....... . . . . . . . 74 -75
Enterprise Funds - Water /Sewer, Electric, Harbor and Hospital Funds
Combining Balance Sheet - All Proprietary Fund Types ................... 78 -79
Combining Statement of Revenues, Expenses and Changes in Retained Earnings .... 80-81
Combining Statement of Changes in Financial Position - All Enterprise Funds ... .. 82 -83
Fiduciary Fund - Deferred Compensation Fund
Statement of Changes in Assets and Liabilities .. ... . . . .. . ... .. . .. . . . . . 85
General Fixed Assets Group of Accounts
Schedule of General Fixed Assets by Sources .............. . . . . . . . . . . 87
Schedule of Changes in General Fixed Assets - Equipment, By Function and Activity ... 88
General Long -term Debt Group of Accounts
Schedule of General Long -term Debt .... ......................... 91
Schedule of Bonded Indebtedness - All Funds .............. . . . . . . . . .. 92 -93
STATISTICAL SECTION
General Fund Expenditures by Function - Last Ten Fiscal Years .................. .
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TABLE OF CONTENTS (cont.)
Paae
General Fund Revenues by Source - Last Ten Fiscal Years ..................... 98-99
Property Tax Levies and Collections - Last Ten Fiscal Years ..................... 100 -101
Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years ........ 102 -103
Property Tax Rates - all Overlapping Governments - Last Ten Fiscal Years ............. 104
Special Assessment Collections ..... ............................... 105
Ratio of Net General Bonded Debt - Last Ten Fiscal Years ...................... 106 -107
Legal Debt Margin ............. ............................... 108
Computation of Direct and Overlapping Debt ............................. 109
Ratio of Annual Debt Service Expenditures - Last Ten Fiscal Years ................. 111
Demographic Statistics - Last Ten Fiscal Years ............................ 112 -113
Property Value, Construction, and Bank Deposits - Last Ten Fiscal Years .............. 114
Local Unemployment Rate ........ ............................... 115
Principal Taxpayers ............ ............................... 116
Miscellaneous Statistical Data ...... ............................... 117
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CITY OF SEWARD
P.O. BOX 567
SEWARD, ALASKA 99664
October 31, 1988
The Honorable Mayor Harry E. Gieseler
and Members of the City Council
City of Seward
P. O. Box 167
Seward, Alaska 99664
Dear Mayor Gieseler and Council:
Main Office (907) 224 -3331
Police (907) 224 -3338
Harbor (907) 224 -3138
Fire (907) 224 -3445
Telecopier (907) 224 -3248
The Comprehensive Annual Financial Report of the City of Seward, Alaska, for the fiscal year ended June
30, 1988, is submitted herewith. This report was prepared by the City's Finance Department. Responsibility for
both the accuracy of the presented data and the completeness and fairness of the presentation, including all
disclosures, rests with the City. We believe the data as presented is accurate in all material aspects. It is
presented in a manner designed to fairly set forth the financial position and the results of operations of the City as
measured by the financial activity of its various funds. All disclosures necessary to enable the reader to gain the
maximum understanding of the City's financial activity have been included.
Scope of Presentation of Financial Statements
This report covers all funds and financial transactions of the City. The report is divided into three
sections: An Introductory Section, which contains a list of principal City officials, an organizational chart for the
City, and a Table of Contents; the Financial Section, which begins with the general purpose financial statements
and provides an overview of the City's financial position and operating results, including the footnotes to the
financial statements, and the combining and individual fund type and account group statements and schedules
that provide additional detailed information relative to the general purpose financial statements; and the Statistical
Section, which includes a number of statistical tables and charts that present various financial, economic, social
and demographic data for the City for the last ten years.
The City is required to undergo an annual single audit in conformity with the provisions of the State of
Alaska Single Audit Regulation 2 ACC 45.010, the Single Audit Act of 1984, and the U.S. Office of Management
and Budget Circular A -128, "Audits of State and Local Governments." Information related to the single audits,
including the schedule of Federal and State financial assistance, findings and recommendations, and the auditor's
report on the internal control structures and compliance with applicable laws and regulations, are issued in a
separate report.
For financial reporting purposes, the City includes all funds and account groups. The general fund is
supported by property taxes and other general government revenues which are not restricted to a particular use in
the general fund. The City also provides utility services, including electric, water, sewer and refuse. These
services are enterprise funds, supported through user charges. The City also maintains an enterprise fund to
account for the operations of all harbor and port related activities. Long -term borrowings and earnings provide for
capital outlay.
All operating and management functions for municipal health powers have been delegated to Seward
General Hospital which is operated by the Community Hospital Board, whose members are appointed by the City
Council. The City performs accounting functions for the hospital under a contractual fee arrangement. The City
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Council exercises budgetary oversight over hospital operations. The financial statements of Seward General
Hospital are included in this report.
The Retwrting Entity and Its Services
The City provides a full range of municipal services that include police and fire, sanitation, health, culture
and recreation, public improvements, planning and general administrative services.
Seward is located on Resurrection Bay, a year - round, ice -free, deep water area located in Southcentral
Alaska. On the eastern side of the Kenai Peninsula, 128 highway miles south of Anchorage, Seward has
year -round overland accessibility. By air, Anchorage is 45 minutes, Juneau three hours, and Seattle four hours.
Situated on Resurrection Bay, Seward is strategically located for easy, economical access to the
Southcentral, Interior and Northern regions of Alaska. Ideally positioned for maritime industrial development and
the growing Pacific Rim Trade, Seward is close to major shipping lanes and is also the southern tidewater
terminus of the Alaska Railroad, which connects the port to Anchorage and the interior of Alaska.
Although the State of Alaska has been severely affected by the decline in oil prices, Seward has often
been cited as a bright spot in the state's economy. Despite diminishing state financial support to local
governments, Seward has managed to maintain existing service levels while avoiding tax increases. Unlike many
parts of Southcentral Alaska, Seward's real property assessed values have remained quite stable. Several new
projects, some already complete and some currently under development, will provide additional jobs to the
Seward economy.
Construction of the State of Alaska's first maximum security prison was completed in March, 1988, and
operation began in May. When full capacity is reached in November, 1988, this facility will provide an additional
217 direct jobs to the local economy. These jobs will greatly enhance the local economy, providing much needed
stability to the primarily seasonal economy of the Seward area. The 320 bed facility was financed and
constructed by the City for the state. In October, 1985, the City issued $45,440,000 in non - recourse Certificates
of Lease Participation. The proceeds, along with $19,188,507 in State of Alaska equity, was used by Seward to
finance construction of the Spring Creek Correctional Center. The completed facility is being leased from Seward
by the State of Alaska under the terms of a long -term lease agreement signed in October, 1985. The certificates
will be repaid by the annual lease payments appropriated by the Alaska legislature. In May, 1987, the City and
the State of Alaska advance refunded the Certificates of Lease Participation, defeasing the original issue. Under
the terms of the refunding, Ford Motor Credit Corporation provided $44,670,000 enabling the City and the State to
fully defease the original issue. The refunded issue will be repaid by the annually appropriated lease payments
pursuant to an Assignment of Lease and Security Agreement entered into between the State of Alaska, the City of
Seward and Ford Motor Credit Corporation at the time of the refunding.
The Seward Marine Industrial Center (SMIC) continues operations as a major ship repair facility. The $46
million facility became operational in 1984. A 3,600 dead - weight ton syncrolift provides access to dry dock and
repair facilities for vessels up to 300 feet in length. The facility offers over 100 acres of industrial and commercial
uplands for marine - related private enterprises. In 1988 the City completed the addition of a vessel transfer
system which has effectively tripled the capacity of the facility. The transfer facility was constructed with a
combination of federal, state, and local monies.
in addition, the City executed its first long term ground lease in the SMIC with a ship repair operator. The
leased land will developed as a permanent ship repair facility offering a full range of services to vessel owners.
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The City is also building a new cargo dock adjacent to the SMIC. Construction of the dock is being
financed with a combination of state grants and $2,100,000 of City general obligation bonds. The completed
project will be capitalized in the Harbor Enterprise Fund,
In 1988, the City also signed two other long -term ground leases. Under the first of these leases, Chugach
Alaska Corporation has already commenced construction of a new timber mill on the leased site. When
completed in the spring of 1989, the mill will produce 25 MMBF of export and domestic dimension lumber and
wood chips and will employ up to 100 people. The second lease, with Inlet Fisheries, Inc., will lead to the
construction of a fish processing facility providing up to 243 seasonal jobs. Under the terms of the Inlet Fisheries
lease, the company will be building a new dock which will be turned over to the City. In exchange, the City has
provided Inlet Fisheries with the possibility of a waiver of the lease payments on the City land for the first twenty
years. The waiver of lease payments is contingent on Inlet Fisheries meeting several specific construction
requirements.
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 on a non - partisan basis. 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 City affairs .
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
Director of Finance and Administrative Services
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. Under this method, unpaid sates taxes and
property taxes are generally not recorded as revenue until received. 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. The City believes that its
internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording
of financial transactions.
The City adopts a fiscal year budget for the general fund. Supplemental appropriations require a
resolution of the Council. All budgets are controlled at the object class level. Estimated purchase order amounts
are encumbered prior to the release of the order to the vendor. When an encumbrance exceeds available
appropriation authority, the order is delayed until the budget is amended. Open encumbrances lapse at year end
and must be re- appropriated in the following year. Therefore, encumbrances are not reported as a reservation of
fund balance at June 30, 1988.
The City authorizes expenditure levels of appropriations by type of service. Ordinance requirements
provide that budgetary guidelines are not restrictive and may be re- allocated by either the City Manager or the
Council. However, the total appropriation level may not be exceeded. During the year ended June 30, 1988,
General Fund expenditures exceeded amounts appropriated for some services, but did not exceed the total
amount appropriated or actual revenues.
General Governmental Functlons
Revenues from general governmental functions (which includes General, Special Revenue and Capital
Projects Funds) totaled $7,821,022 in fiscal year 1988, an increase of $1,065,148 (15.8 %) from fiscal year 1987.
The amount of revenue from major sources and the increase or decrease over 1987 is shown in the following
summary:
The increase in tax revenues was due to two factors. General property tax revenues produced $535,312,
compared to $393,815 for the prior year. The increase was due to a rise in assessed values to $162,902,721, a
gain of 11.4% from 1987. Sales taxes generated $783,121, an increase from the prior year's $448,304. The
increase was due in part to continued growth in taxable sales. Also, fiscal year 1988 was the first fiscal year to
fully benefit from the increase in the sales tax rate from 1% to 3 %. That increase became effective October 1,
1986. The City reduced the property tax rate 40% at the same time.
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 and sales taxes on behalf of the City.
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Dollar Percent
Increase Increase
Percent Decrease) Decrease]
Revenue, Sources Amount of Total from 1987 from 1987
Taxes 1,318,434 16.9% 476,315 56.6%
Licenses and permits 72,681 0.9 10,652 17.2
Intergovernmental revenue 3,600,967 46.0 43,908 1.2
Charges for services 2,190,014 28.0 361,300 19.8
Fines and forfeits 14,465 0.2 970 7.2
Miscellaneous revenue 624,461 8.0 172,003 38.0
7 821 022 100.011/6 1 465 148 15.811/6
The increase in tax revenues was due to two factors. General property tax revenues produced $535,312,
compared to $393,815 for the prior year. The increase was due to a rise in assessed values to $162,902,721, a
gain of 11.4% from 1987. Sales taxes generated $783,121, an increase from the prior year's $448,304. The
increase was due in part to continued growth in taxable sales. Also, fiscal year 1988 was the first fiscal year to
fully benefit from the increase in the sales tax rate from 1% to 3 %. That increase became effective October 1,
1986. The City reduced the property tax rate 40% at the same time.
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 and sales taxes on behalf of the City.
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Expenditures for general governmental purposes totaled $8,027,357 in fiscal year 1988, an increase of
1,031,901 (14.8 %) from 1987. Increases and decreases in levels of expenditures for major functions of the City
from the preceding year are shown in the following tabulations:
Dollar Percent
Increase Increase
Percent Decrease) Decrease)
Amount of Total Over 1987 Over 1 7
General Government 1,955,464 24.3% 599,214) 23.5)%
Public Safety 1,369,233 17.1 38,172 2.9
Public Works 1,242,415 15.5 218,953 21.4
Parks and Recreation 279,863 3.5 87,867 45.8
Debt Service 20,206 0.3 20,206
Capital Outlay 3.160.176 39.3 1,265,917 66.8
8,027,357 100.0% 11,031,901 14.8%
The General Fund year -end fund balance totaled $3,041,446, an increase of $217,445 over 1987.
Debt Administration
The ratio of net bonded debt to assessed valuation and the amount of bonded debt per capita are useful
indicators of the City's debt position to management, citizens, and investors.
Ratio of Net
Bonded Debt to
Assessed Value
100% of Per
Amount Market Value) Ca 1 a
Net Direct Bonded Debt $10,345,000 6.35% $4,310
General Obligation bonds are carried in the General Long -Term Debt group of accounts or in the
respective Enterprise Funds which benef had from the proceeds of the issue.
At June 30, 1988, the City had $10,345,000 in outstanding general obligation bonds. Of this total, general
obligation bonds of $9,895,000 have been recorded in the Enterprise Funds which benefited from proceeds of
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Cash Management
The City has combined all its funds into a "Central Treasury". The Central Treasury concept permits
investment of combined funds, and 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 clearly 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
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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 $ 6,328
Certificates of Deposit 3,477,620
Repurchase agreements 349.326
3,832,274
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, 1988, was $215,949. This amount
was $56,604 more than the interest earned in the fiscal year ended June 30, 1987.
Capital Projects I
Proceeds of general obligation bond issues are accounted for in Capital Projects Funds until improvement
projects are completed. Completed projects and uncompleted construction in progress at year -end are
capitalized in the General Fixed Assets Account Group.
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.
At June 30, 1988 general fixed assets totaled $70,331,770, an increase of $1,284,047 from June 30,
1987. The majority of the increase represents additional construction work in progress within the Capital Projects
Funds.
The City maintains detailed identifiable records of all general fixed assets. 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. Land inventories
were completed in 1983. Valuation was established, as near as could be determined, 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.
Enterprise Funds
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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. The City maintains four Enterprise Funds which provide electric, water /sewer, hospital, and harbor
services.
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Enterprise Fund Plant In service, acquired by contributions in aid of constriction 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 contftded 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 cuslomem 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 in lieu of taxes and administrative expenses are made in
accordance with the budget ordinance.
IndeosndW Audit
The City Charter and Section 29.35.120 of the Alaska Statutes both require an annual audit of the books
of account, financial records, and transactions of all administrative departments of "home rule" municipalities by a
Certifled Public Accountant selected by the City Council. This requirement has been compiled with and the
auditor's report has been included in this report.
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The preparation of this report could not be accomplished without the efficient and dedicated services of
the entire staff of the Finance Department. I should like to express my appreciation to all members of the
department who assisted and contributed to its preparation.
1 would also Ike to thank the members of the City Council for their Interest and support if1 planning and
conducting the financial operations of the City in a responsible and progressive manner.
Respectfully submitted,
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Max Royle
City Manager
Robert D. Peirson
Director of Finance and
Administrative Services
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Harry E. Gieseler
David L. Hilton, Sr.
Michael J. Meehan
Leslie Simutis
Patrick O'Brien
Beverly Dunham
William Noll
Max Royle
Darryl Schaefermeyer
Linda Murphy
Robert Peirson
Everett P. Diener
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CITY OF SEWARD
LIST OF PRINCIPAL OFFICIALS
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Mayor
Councilperson
Councilperson
Councilperson
Councilperson
Councilperson
Councilperson
City Manager
City Manager
City C erk
Director of Finance and
Administrative Services
City Engineer and
Utility Manager
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City Clerk
Administrative
Assistant
Dispatch
City of Seward
Organizational Chart
Fc-moa,y-ocr,
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City Manager Secretary
Deputy City Manager
Parks & CityPallceFinance
Chief Director
Patrol Accounting
Animal Cashier
Control Data
Corrections Processing
DMV Custodian
Dispatch
City of Seward
Organizational Chart
Fc-moa,y-ocr,
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City Manager Secretary
Deputy City Manager
Parks & City
Recreation Engineer
Director
Public Project
Recreation Engineer
Teen Center Building
Inspection
Utility Manager
Electric
Public Works
Supervisor
Water
Sewer
Television
Fire
Chief
Harbormaster
Seward Boat
Harbor
Marine
Industrial
Center
City Attorney I
Community
Development
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PART 11
FINANCIAL SECTION
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101 West Benson Boulevard Telephone 907 563 4444
Anchorage, AK 99503
Price Waterhouse to
November 4, 1988
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To the Honorable Mayor
and Members of the City Council
Seward, Alaska
We have examined the combined financial statements of the City of Seward and the combining,
individual fund, and account group financial statements as of and for the year ending June 30, 1988 as
listed in the table of contents. Our examination of these statements 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. We did not examine
the financial statements of the Seward General Hospital, a component unit as defined by generally
accepted accounting principles, which statements represent three percent and twenty -two percent,
respectively, of the assets and revenues of all Proprietary Funds. These statements were examined by
other independent accountants 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 independent accountants referred to above.
In our opinion, based upon our examination and the report of other independent accountants, the
financial statements present fairly the financial position of the City of Seward at June 30, 1988 and the
results of its operations and the changes in financial position of its proprietary fund types for the year then
ended, in conformity with generally accepted accounting principles applied on a basis consistent with that
of the preceding year.
The combined, combining, individual fund and account group financial statements of the City of
Seward for the year ended June 30, 1987 were examined by other independent accountants whose
report dated September 25, 1987 expressed an unqualified opinion on those statements prior to the
restatements described in Note 13.
We also reviewed the adjustments described in Note 13 that were applied to restate the 1987
financial statements. In our opinion, such adjustments are appropriate and have been properly applied to
the 1987 financial statements.
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.
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COMBINED STATEMENTS - OVERVIEW
These financial statements provide a summary overview of the financial position of all funds and account groups
and the operating results of all funds. The following statements are included in this section:
Combined Balance Sheet - All Fund Types and Account Groups
Reports assets, liabilities and fund balances for all funds and account groups.
Combined Statement of Revenues, Expenditures and Changes In Fund Balances - All
Governmental Fund Types
Reports results of operations of the General Fund, Special Revenue Funds and Capital Projects.
Statement of Revenues, Expenditures and Changes In Fund Baiance - Budget and Actual, General
Fund.
Compares the results of operations with budget for the General Fund.
Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary
Fund Types
Reports results of operations of the Enterprise Funds.
Combined Statement of Changes In Financial Position - All Proprietary Fund Types
Reports the sources, uses and components of working capital of the Enterprise Funds.
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CITY OF SEWARD
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
June 30, 1988
With Comparative Totals as of June 30, 1987
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
Other Assets
Fixed assets, net of accumulated depreciation
Capitalized leased assets, net of accumulated
amortization
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
Due to City employees
Accrued liabilities
Funds held in trust
Customer deposits
Deferred revenues
Notes payable
Revenue bonds, general obligation bonds,
bonds, and capitalized lease obligation
payable from enterprise fund revenues
Total liabilities
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
Unreserved:
Governmental Fund Types
Special Capital
General Revenue _ Projects
650 $ -- $ --
3,556,847 -- --
90,310 -- --
1,049,037 196,116 --
4,250 445,823 93,491
23,170 -- --
353,664 -- --
43,535 784,893
66,920 -- --
5,144,848 $ 685,474 $ 878,384
190,531 $ 117,781 $ 20,262
1,432,073 764,980 49,490
132,480 -- --
6,600 -- --
341,718 2,500 258,323
2,103,402 885,261 328,075
66,920 -- --
Undesignated 2,974,526 199,787 550,309
Total fund equity (deficit) 3,041,446 199,787 550,309
Total liabilifes and fund equity $ 5,144,848 $ 685,474 $ 878,384
22 See accompanying notes to financial atatemedts
Proprietary Fiduciary
Fund Type Fund Type Account Groups Totals
General Long- term Memorandum Only)
Enterprise AUency Fixed Assets Debt 1988 1987
17,544) 16,894) 161,451
1,906,659 1,906,659 815,171
799,800 799,800 69,126
3,556,847 1,797,244
90,310 100,268
578,009 1,823,162 1,697,815
137,941 681,505 430,746
23,170 17,239
12,440 366,104 408,022
6,258
1,495,374 2,323,802 2,443,154
594,553 594,553 619,413
8,040 74,960 230,390
49,859 49;859
30,582,871 70,331,770 100,914,641 95,913,371
21,120 21,120 25,960
628,875 0 181,299
35,369,322 799,800 70,331,770 628,875 113,209,598 104,916,927
631,643 960,217 582,194
1,983,917 4,230,460 2,443,078
799,800 799,800 815,171
361,540 149,292 494,020 572,574
6,600 1,708
82,516 82,516 82,669
768,252 1,370,793 1,615,890
29,583 0 48,158
9,915,800 450,000 9,915,800 8,164,134
13,743,668 799,800 628,875 17,860,206 14,325,576
70,331,770 70,331,770 64,971,380
20,332,923 20,332,923 20,720,813
1,292,731 1,292,731 1,364,869
66,920 198,289
3,325,048 3,336,000
21,625,654 70,331,770 95,349,392 90,591,351
35,369,322 799,800 70,331,770 628,875 113,209,598 104,916,927
23
CITY OF SEWARD
ALL GOVERNMENTAL FUND TYPES
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year ended June 30, 1988
With Comparative Totals for Year ended June 30, 1987
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 446,427 (13,922)
OTHER FINANCING SOURCES (USES)
Operating transfers in (out) (231,000) 70,000
General Obligation Bond proceeds __ -_
EXCESS OF REVENUES AND OTHER SOURCES OVER
UNDER) EXPENDITURES AND OTHER USES 215,427 56,078
FUND BALANCES (DEFICITS), beginning of year 2,824,001 (255,865)
Residual equity transfers In (Out) 2,018 --
FUND BALANCES (DEFICITS), end of year $ 3,041,446 $ (199,787 _
24 Sae accompanying notes to financial statements
Special
General Revenue
REVENUES
Taxes 1,318,434
Licenses and permits 72,681
Intergovernmental revenue 605,928 497,978
Charges for services 2,065,660 124,354
Fines and forfeits 14,465
Miscellaneous revenue 224,941 375,245
Total revenues 4,302,109 997,577
EXPENDITURES
Current
General government 1,625,704 329,760
Public safety 1,369,233
Public works 560,677 681,739
Paris and recreation 279,862
Capital outlay
Debt service
Principal retirement
Interest and fiscal charges 20,206
Total expenditures 3,855,682 1,011,499
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 446,427 (13,922)
OTHER FINANCING SOURCES (USES)
Operating transfers in (out) (231,000) 70,000
General Obligation Bond proceeds __ -_
EXCESS OF REVENUES AND OTHER SOURCES OVER
UNDER) EXPENDITURES AND OTHER USES 215,427 56,078
FUND BALANCES (DEFICITS), beginning of year 2,824,001 (255,865)
Residual equity transfers In (Out) 2,018 --
FUND BALANCES (DEFICITS), end of year $ 3,041,446 $ (199,787 _
24 Sae accompanying notes to financial statements
1,955,464
Totals
Capital Memorandum Only)
Projects 1988 1987 restated
1,318,434 842,119
72,681 62,029
2,497,061 3,600,967 3,557,059
2,190,014 1,828,714
14,465 13,495
24,275 624,461 452,458
2,521,336 7,821,022 6,755,874
1,955,464 2,554,678
1,369,233 1,331,061
1,242,416 1,023,462
279,862 191,996
3,160,176 3,160,176 1,894,259
20,206
3,160,176 8,027,357 6,995,456
638,840) 206,335) 239,582)
11,812) 172,812) 11,811
439,314 439,314
211,338) 60,167 (227,771)
763,665 3,331,801 3,559,572
2,018) -- --
550,309 $ 3,391,966 $ 3,331,801
25
CITY OF SEWARD
GENERALFUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
Year ended June 30, 1988
With comparative totals for year ended June 30, 1987
REVENUES
Taxes
Licenses and permits
Intergovernmental revenue
Charges for services
Fines and forfeits
Miscellaneous revenue
Total revenues
EXPENDITURES
Current
General government
Public safety
Public works
Parks and recreation
Debt service
Total expenditures
EXCESS OF REVENUES OVER
UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in (out)
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES
FUND BALANCE, beginning of year
Residual equity transfers
FUND BALANCE, end of year
1,612,450 1,625,704
Variance
1,414,497
1,347,312 1,369,233
Favorable
1,331,061
Budget Actual Unfavorable) 1987
1,161,672 1,318,434 156,762 842,119
71,050 72,681 1,631 62,029
475,763 605,928 130,165 755,182
1,712,576 2,065,660 353,084 1,758,086
13,000 14,465 1,465 13,495
185,600 224,941 39,341 276,108
3,619,661 4,302,109 682,448 3,707,019
1,612,450 1,625,704 13,254) 1,414,497
1,347,312 1,369,233 21,921) 1,331,061
651,359 560,677 90,682 515,959
275,731 279,862 4,131) 191,996
20,206 20,206
3,886,852 3,855,682 31,170 3,453,513
267,191) 446,427 713,618 253,506
231,000) (231,000)
498,191)
2,824,001
215,427
2,824,001
2,018
1,098,944
713,618 (845,438)
3,669,439
2,018 --
2,325,810 $ 3,041,446 $ 715,636 $ 2,824,001
26 See accompanying notes to financial statements
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II
CITY OF SEWARD
ALL ENTERPRISE FUNDS
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
Year ended .tune 30,1988
With comparative totals for year ended June 30,1987
OPERATING REVENUES
Residential sales
Commercial Sales
Industrial
Governmental sales
City of Seward sales
Moorage
Patient service revenues, net
Miscellaneous
Total operating revenues
OPERATING EXPENSES
Power
Distribution
Pumping
Supplies and maintenance
Patient and general service
Personal services
Administration and general
Depreciation
Total operating expenses
Operating loss
NON-OPERATING REVENUES (EXPENSES)
Interest
Bond interest
Other
Fiscal agent fees
Contributions
Total non - operating revenues (expenses)
Loss before operating transfers and extraordinary item
OPERATING TRANSFERS IN (OUT)
Net loss before extraordinary item
LOSS ON DEBT EXTINGUISHMENT
Net loss
TRANSFERS ON CONTRIBUTED ASSETS
r
Decrease in retained earnings
RETAINED EARNINGS, beginning of year, restated
RETAINED EARNINGS, end of year
1988
1,512,678
1,247,560
241,771
793,298
326,965
606,088
1,426,729
606,134
6,761,223
1,498,335
297,536
88,516
202,533
1,202,810
391,234
2,806,461
1,391,914
7,879,339
1,118,116)
46,748
593,517)
32,315
348,645
165,809)
1,283,925)
172,812
1,111,113)
1,111,113)
831,030
280,083)
1,572,814
1,292,731
1987 (restated
1,569,236
1,229,928
219,832
770,354
275,261
499,050
1,555,538
706,553
6,825,752
1,419,759
285,579
80,843
208,093
1,215,413
323,130
2,394,106
1,355,595
7,282,518
456,766)
74,701
472,740)
22,614
500)
362,089
t13,836)
470,602)
11,811)
482,413)
1,190,471)
1,672,884)
830,961
841,923)
2,414,737
1,572,814
1 Sea accompanying notes to financial statements 27
CITY OF SEWARD
ALL ENTERPRISE FUNDS
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION
Year ended June 30,1988
With comparative totals for year ended June 30,1987
SOURCES OF WORKING CAPITAL 1988 1987 (restated)
Operations
Earnings (loss) before extraordinary item 1,111,113) 483,413)
Items not requiring working capital -
Depreciation 1,394,281 1,357,963
Transfer of special assessment fund deficit 30,967)
Working capital provided (used) by
operations before extraordinary item 283,168 843,583
Extraordinary item - loss on debt extinguishment 1,190,471)
Working capital provided (used) by operations 283,168 346,888)
Proceeds from long -term debt 2,100,000 1,216,471
2,383,168 869,583
USES OF WORKING CAPITAL
Acquisition of property, plant and equipment,
net of contribution -in -aid 587,181 265,670
Current band maturities 305,334 450,693
892,515 716,363
Increase in working capital 1,490,653 153,220
ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL
Increase (decrease) in current assets
Cash 1,728,314 44,905)
Cash with fiscal agent 69,126) 4,925)
Receivables
Accounts, net 39,875) 159,233
Special assessments 16,541) 28,980
Other assets 49,859
Prepaids 24,061) 9,271
Due from other funds 799,246 695,912)
Inventory 24,860 214,752
2,402,956 333,506)
Increase) decrease in current liabilities
Accounts and contracts payable 264,706) 1,340,559
Customer deposits 155 27,196
Deferred revenues 751,267) 15,009)
Due to other funds 83,245 793,493)
Accrued liabilities 22,730) 25,994)
Current maturities of bonds payable 43,000 46,533)
912,303 486,726
Increase in working Capital 1,490,653 153,220
28 See accompanying notes to flnancial statements
CITY OF SEWARD
NOTES TO FINANCIAL STATEMENTS
June 30,1988
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying summary of the City of Seward's more significant accounting policies is presented to
assist the reader in interpreting the financial statements and other data in this report. These policies, as
presented, should be viewed as an integral part of the accompanying financial statements.
A. Defining the reporting entity: The accompanying financial statements include all activities and reporting
entities over which the City of Seward (City) exercises oversight responsibility. Oversight responsibility is
derived from the City'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 Community Hospital Board, a subsidiary award appointed by the City Council. The
Hospital's accounting records 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 for the schools is not included in the accompanying financial statements of the
City.
B. Basis of presentation - fund accounting: The accounts of the City are organized on the basis of funds
and account groups, each of which is considered a separate accounting entity. The operations of each
fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities,
fund equity, revenues, and expenditures or expenses, as appropriate. Government resources are
allocated to, and accounted for in, individual funds based upon the purposes for which they are to be
spent and the means by which spending activities are controlled. In the financial statements in this
report, the various funds are grouped into seven generic fund types and three broad fund categories as
follows:
1.) Fund Categories
Governmental Fund, Types - Governmental funds are those through which most governmental
functions of the City are financed. The acquisition, use and balances of the City's expendable
financial resources and the related liabilities (except those accounted for in proprietary funds) are
accounted for through governmental funds. The measurement focus is upon determination of
changes in financial position, rather than upon net income determination. The following are the
City's Governmental Fund Types:
The General Fund is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund.
Special Revenue Funds are used to account for dedicated revenues derived from such sources
as state grants, specific City operations and other sources.
Capital Projects Funds are used to account for financial resources used for the acquisition or
construction of major capital facilities (except for those financed by proprietary funds).
1 29
2.)
3.)
4.)
1
Proprietary Fund Types - Proprietary Funds are used to account for operations which are similar
to those often found in the private sector - where the intent of the City is that the costs (expenses,
including depreciation) of providing services to the public on a continuing basis be financed or
recovered primarily through user charges. The acquisition, maintenance and improvement of the
physical plant facilities required to provide these services are financed from existing cash
resources, the issuance of general obligation bonds and state and federal grants. The
measurement focus is upon determination of net income. The following are the City's Proprietary '
Fund Types:
The Electric Fund is used to account for the provision of electricity to the residents of the City and
certain residents of the Kenai Peninsula Borough.
The Water and Sewer Fund is used to account for the provision of water and sewer services to
the residents of the City.
The Harbor Fund is used to account for the provision of harbor services to the public on
Resurrection Bay.
The Hospital Fund is used to account for the provision of hospital services to the public.
Fiduciary Funds - Fiduciary Funds account for assets held by the City in a trustee capacity or as
an agent for individuals, private organizations, other governments, and other funds. The City
maintains one fiduciary fund which is an agency fund. That agency fund, named the Deferred
Compensation Fund, accounts for the voluntary employee contributions made to a Section 457
deferred compensation plan. Agency Funds are custodial in nature (assets equal liabilities) and
do not involve measurement of results of operations.
Account Groups
Account groups are used to establish accounting control and accountability for the City's general
fixed assets and general long -term debt. The following are the City's account groups:
General Fixed Assets Account Group - This group of accounts is established to account for all
fixed assets of the City, other than those accounted for in the proprietary funds.
General Long -Term Debt Account Group - This group of accounts is established to account for all
long -term debt of the City except that accounted for in the proprietary funds.
Comparative Data
Comparative data for the General Fund Balance Sheet, General Fixed Assets Group of Accounts,
General Long -Term Debt Group of Accounts and for the Enterprise Fund Balance Sheet,
Statement of Revenues, Expenses and Changes in Retained Earnings and Statement of
Changes in Financial Position are presented in order to provide an understanding of the change
in financial position for respective funds. Comparative data are not included for the other funds.
Memorandum Only Totals - Combined Statements
ITotalcolumnsarepresentedfortheCombinedBalanceSheet - All Fund Types and Account
Groups and the Combined Statement of Revenues, Expenditures, and Changes in Fund Balance
All Governmental Types in 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 unit as a
whole in conformity with generally accepted accounting principles.
30 1
C. Basis of accounting: Basis of accounting refers to when revenues and expenditures or expenses are
recognized in the accounts and reported in the financial statements, regardless of the measurement focus
applied.
All governmental funds and agency funds are accounted for using the modified accrual basis of
accounting. Their revenues are recognized when they become measurable and available as net current
assets. Intergovernmental revenues received as reimbursement for specific purposes or projects are
recognized based upon the expenditures recorded. Intergovernmental revenue received but not yet
earned is recorded as deferred revenue.
Expenditures are generally recognized under the modified accrual basis of accounting when the related
fund liability is incurred, except for principal and interest on general long -term debt which is recognized
when due.
All proprietary funds are accounted for using the accrual basis of accounting. Revenues are recognized
when they are earned and expenses are recognized when they are incurred. 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.
D. Budgetary data: 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 fund level
by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors.
Amendments to appropriations may be made by the City administration or the Council by transfers within
a department. Supplemental appropriations 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:
Fund
General Fund
Original
Appropriation
3,571,662
Unencumbered, unexpended appropriations lapse at year end.
Final
Budget
4,117,852
Encumbrance accounting, under which purchase orders, contracts and other forms of legal commitments
for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation,
is employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds
and Capital Projects Funds.
E. Assets, liabilities and fund equity:
Central Treasury - The City has combined all of its funds into a "Central Treasury". Cash restrictions
imposed by ordinance, resolution, or otherwise have been segregated in the accompanying statements
from funds unrestricted as to use.
The Central Treasury concept permits investments of combined funds and earnings thereon have been
reported in the fund which supplied the resources for investment.
1
31
Each fund whose monies are deposited in the Central Treasury has equity therein. Certain funds have
made disbursements from the Central Treasury in excess of their individual equities. These amounts are
shown as "Due to Other Funds" in the statements.
At June 30, 1988, the Central Treasury was composed of the following:
Cash
Certificates of deposit
Repurchase agreements
5,336
3,477,624
349.318
1 3.832.274
Investments - Investments of the City consist of time certificates of deposit and repurchase agreements
which are valued at the lower of cost or market.
Inventory - Inventories, carried in the Electric and Water /Sewer enterprise funds, are carried at the lower
of cost or market, determined by the first -in, first -out method.
Fixed assets and long -term liabilities - The accounting and reporting treatment applied to the fixed assets
and long -term liabilities associated with a fund are determined by its measurement focus. All
governmental funds are accounted for on a spending or "financial flow" measurement focus. This means
that only current assets and current liabilities are generally included in their balance sheets. Their
reported fund balance (net current assets) is considered a measure of "available spendable resources ".
Governmental fund operating statements present increases (revenue and other financing sources) and
decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to
present a summary of sources and uses of "available spendable resources" during a period. Fixed assets
which are used in governmental fund type operations (general fixed assets) are accounted for in the
General Fixed Assets Account Group, rather than in governmental funds. Public domain general fixed
assets ( "infrastructure ") consisting of certain improvements other than buildings including roads, bridges,
curbs and gutters, streets and sidewalks, drainage systems, and lighting systems are not capitalized
along with other general fixed assets. No depreciation has been provided on general fixed assets.
All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not
available. Donated fixed assets are valued at their estimated fair value on the date donated.
Long -term liabilities expected to be financed from the General Fund are accounted for in the General
Long -term Debt Account Group, not in the governmental funds.
The two account groups are not 'funds ". They are concerned only with the measurement of financial
positions. They are not involved with measurement of results of operations.
Noncurrent portions of long -term receivables due to governmental funds are reported on their balance
sheets, in spite of their spending measurement focus. Special reporting treatments are used to indicate,
however, that they should not be considered "available spendable resources ", since they do not represent
net current assets. Recognition of governmental fund type revenues represented by noncurrent
receivables is deferred until they become current receivables.
Because of their spending measurement focus, expenditure recognition for governmental fund types is
limited to exclude amounts represented by noncurrent liabilities. Since they do not affect current assets,
such long -term amounts are not recognized as governmental fund type expenditures or fund liabilities.
They are instead reported as liabilities in the General Long -Term Debt Account Group.
32
J
General fixed assets - Fixed assets acquired by funds 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. Upon disposal of significant property
items, the General Fixed Assets Group of Accounts is relieved of the related cost, or estimated cost, and
any receipt is normally accounted for as revenue in the General Fund.
Fixed assets (Enterprise Funds) - Assets comprising property, plant and equipment in the Enterprise
Funds are stated at cost. Depreciation has been provided by the use o1 the straight -line method over the
estimated lives of the assets.
Estimated lives of major asset categories are as follows:
Buildings 10 -30 years
Improvements other than buildings 15 years
Equipment 5 -20 years
Enterprise Fund property, plant and equipment acquired by contributions in aid of construction from
grants, entitlements or shared revenues externally restricted 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 totals of such depreciation transfers.
Accrued leave - Annual leave (vacation) is recorded as an expense in the proprietary funds in the period it
is earned by the employees, with the total liability for accrued leave presented in the related fund balance
sheet. The amount of compensated absences recorded as expenditures in governmental funds is the
amount accrued during the year that would normally be liquidated with expendable available resources.
Only the current portion of the liability is recorded in the governmental fund balance sheet, with the
remainder reported in the general long -term debt account group. Accumulated unpaid vacation at June
30, 1988 consisted of the following:
Reserve - The following reserve has been established in the governmental fund types:
General fund - Reserve for prepaid expenditures: A portion of fund balance representing prepaid
insurance at year end. The segregation has been made for expenditure upon use of the insurance policy.
F. Revenues, expenditures and expenses:
Revenue Recognition - Sales tax are considered "measurable" when in the hands of the Kenai Peninsula
Borough and are recognized as revenue at that time. Other major revenues that are determined to be
susceptible of accrual include Revenue Sharing, grants -in -aid earned and other intergovernmental
revenues, interest, rentals and intra -city charges. Major revenues that are determined to not be suscepti-
ble of accrual because they are either not available soon enough to pay liabilities of the current period or
are not objectively measurable include delinquent property taxes, licenses, permits, fines and forfeitures.
i
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33
General Fund 48 551
General Long -term Debt Group Accountsof 1149,292
Enterprise Funds
Harbor 38,805
Electric 40,913
Water /Sewer 11.521
91 239
Reserve - The following reserve has been established in the governmental fund types:
General fund - Reserve for prepaid expenditures: A portion of fund balance representing prepaid
insurance at year end. The segregation has been made for expenditure upon use of the insurance policy.
F. Revenues, expenditures and expenses:
Revenue Recognition - Sales tax are considered "measurable" when in the hands of the Kenai Peninsula
Borough and are recognized as revenue at that time. Other major revenues that are determined to be
susceptible of accrual include Revenue Sharing, grants -in -aid earned and other intergovernmental
revenues, interest, rentals and intra -city charges. Major revenues that are determined to not be suscepti-
ble of accrual because they are either not available soon enough to pay liabilities of the current period or
are not objectively measurable include delinquent property taxes, licenses, permits, fines and forfeitures.
i
1
33
Real and personal property taxes receivable are accrued, but uncollected amounts in excess of the
estimated uncollectible portion are deferred and reflected as such in the balance sheet.
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 assessments receivables.
2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Appropriations: The City authorizes expenditure levels of appropriation 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, 1988, General Fund expenditures exceeded amounts appropriated for some
services but did not exceed the total amount appropriated or actual revenues.
L
3.
Deficit funds: Enterprise - The Water /Sewer Fund had deficit retained earnings of $754,409 at June 30,
1988. Special Revenue - The Marine Industrial Center Fund had a deficit fund balance of $248,369 at
June 30, 1988.
CASH AND INVESTMENTS
The City's certificates of deposit during the year and at year end were entirely covered by federal
depository insurance or by collateral held by an escrow bank in the City's name. Security for cash
deposits and the repurchase agreement is provided by a combination of federal depository insurance and
collateral held by the bank's trust department in the City's name.
Statutes authorize the City to invest in obligations of the U. S. Treasury and U. S. agencies,
bankers' acceptances, repurchase agreements, commercial paper rated A -1 by Standard & Poors
Corporation or P -1 by Moody's Commercial Paper Record and maturing within nine months, and
certificates of deposit insured by federal depository insurance or secured by eligible collateral held by a
third party in the City's name.
The City's investments at year -end are categorized below to give an indication of the level of risk
assumed by the City at year end. Category 1 includes investments that are insured or registered or for
which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured
and unregistered investments for which the securities are held by the broker's or dealer's trust
department or agent in the City's name. Category 3 includes uninsured and unregistered investments for
which the securities are held by the broker or dealer, or by its trust department or agent but not in the
City's name.
Category
1 2 3
Certificates of deposit $ 3,477,620 $ -- $ --
Repurchase agreement 9,622 300,000 45,032
Total investments $3,487,242 300,000 45,032
Bank Carrying
Balance Amount
3,477,620 $ 3,477,620
354,654 79,227
13,832,274 3 556 847
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34 1
4.
5.
2
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.
CHANGES IN GENERAL FIXED ASSETS
A summary of changes in general fixed assets follows:
t i69,047,723 $ 1,284253 206. 70,331,770
A summary of proprietary fund type property, plant and equipment at June 30, 1988 follows:
cost
Land $ 120,709
Buildings 4,248,218
Improvements other than buildings 7,403,584
Equipment 26,782,573
Work in progress 584,215
39,139,299
Less accumulated depreciation 8,556,428
30 ,582.871
PENSION PLANS
STATE OF ALASKA PUBLIC EMPLOYEES RETIREMENT SYSTEM
The City of Seward (City) and Seward General Hospital (Hospital) and substantially all of the
employees contribute to the State of Alaska Public Employees' Retirement System (PERS).
The PERS is a defined benefit agent multiple- employer retirement system. The PERS was
established by State of Alaska Statutes January 1, 1961, and includes employees of the State and its
political subdivisions. Benefit provisions are modified from time to time through legislative action at the
State level. City and Hospital employees contribute 6.75% of their annual pre -tax income, except peace
officers, who contribute 7.5 %. The City, Hospital and all other employers pay an amount that is
actuarially determined on an annual basis. For fiscal year ended June 30, 1988, the contribution rates for
the City and Hospital were 9.740/6 and 19.04 %, respectively, of covered payroll. The City's total payroll
1
35
Balance
Additions DeletionsJuly1. 1987
Land 19,252,372
Buildings 6,529,112
Improvements other
38,070,008thanbuildings38,070,008
Equipment 1,119,888
Work in progress 4,076,343
t i 69,047,723 $ 1,284253 206. 70,331,770
A summary of proprietary fund type property, plant and equipment at June 30, 1988 follows:
cost
Land $ 120,709
Buildings 4,248,218
Improvements other than buildings 7,403,584
Equipment 26,782,573
Work in progress 584,215
39,139,299
Less accumulated depreciation 8,556,428
30 ,582.871
PENSION PLANS
STATE OF ALASKA PUBLIC EMPLOYEES RETIREMENT SYSTEM
The City of Seward (City) and Seward General Hospital (Hospital) and substantially all of the
employees contribute to the State of Alaska Public Employees' Retirement System (PERS).
The PERS is a defined benefit agent multiple- employer retirement system. The PERS was
established by State of Alaska Statutes January 1, 1961, and includes employees of the State and its
political subdivisions. Benefit provisions are modified from time to time through legislative action at the
State level. City and Hospital employees contribute 6.75% of their annual pre -tax income, except peace
officers, who contribute 7.5 %. The City, Hospital and all other employers pay an amount that is
actuarially determined on an annual basis. For fiscal year ended June 30, 1988, the contribution rates for
the City and Hospital were 9.740/6 and 19.04 %, respectively, of covered payroll. The City's total payroll
1
35
Balance
Additions Deletions June 30, 1988
62,441 $ -- 19,314,813
113,724 -- 6,642,836
38,070,008
61,032 206 1,180,714
1,047,056 -- 5,123,399
t i69,047,723 $ 1,284253 206. 70,331,770
A summary of proprietary fund type property, plant and equipment at June 30, 1988 follows:
cost
Land $ 120,709
Buildings 4,248,218
Improvements other than buildings 7,403,584
Equipment 26,782,573
Work in progress 584,215
39,139,299
Less accumulated depreciation 8,556,428
30 ,582.871
PENSION PLANS
STATE OF ALASKA PUBLIC EMPLOYEES RETIREMENT SYSTEM
The City of Seward (City) and Seward General Hospital (Hospital) and substantially all of the
employees contribute to the State of Alaska Public Employees' Retirement System (PERS).
The PERS is a defined benefit agent multiple- employer retirement system. The PERS was
established by State of Alaska Statutes January 1, 1961, and includes employees of the State and its
political subdivisions. Benefit provisions are modified from time to time through legislative action at the
State level. City and Hospital employees contribute 6.75% of their annual pre -tax income, except peace
officers, who contribute 7.5 %. The City, Hospital and all other employers pay an amount that is
actuarially determined on an annual basis. For fiscal year ended June 30, 1988, the contribution rates for
the City and Hospital were 9.740/6 and 19.04 %, respectively, of covered payroll. The City's total payroll
1
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C
was $2,846,226, and the covered payroll was $2,146,654. The Hospital's total payroll was $1,016,530, '
and the covered payroll was $953,639.
Employees hired prior to July 1, 1986, with five or more years of credited service are entitled to
annual pension benefits beginning at normal retirement at 55 or early retirement at 50. For employees
hired after June 30, 1986, the normal and early retirement ages are 60 and 55, respectively. The normal
annual pension benefit is equal to 2% of the member's highest three -year average monthly compensation
for the first ten years of service, 2 -1/4% for the second ten years of service, and 2 -1/2% after that. All
service earned prior to July 1, 1986, will be calculated using a 2% multiplier. Employees with 30 or more
years of credited service (20 years for peace officers) may retire at any age and receive a normal benefit.
Major medical benefits are provided without cost to all retirees first hired before July 1, 1986.
Members first hired after June 30, 1986, may elect major medical benefits.
If an employee dies from occupational causes, the employee's spouse or dependent children '
receive a monthly pension from the PERS. Nonoccupational death benefits are paid based on years of
service and would consist of either a lump sum benefit or a joint and survivor option. Active employees
who become permanently disabled due to an occupational injury receive disability payments until normal
retirement age, at which time they begin receiving normal retirement benefits. Credited service is
adjusted to include the time that the employee was disabled.
THE RETIREMENT INCENTIVE PROGRAM '
The Retirement Incentive Program (RIP) was established on May 15, 1986, under House Bill 382.
The program was designed to encourage employees who were eligible for the program to retire
voluntarily with earlier retirement eligibility or increased benefits. The cost of the program is more than
offset by the savings of salary and other benefits provided to an active employee.
To be eligible for the program, an employee must be vested, included in an organizational unit
approved for participation, and meet the minimum age and service requirement.
The RIP gives each eligible employee participating in the program three years of incentive credit.
The incentive credit is applied in the following order:
1. to reduce the age or service requirement for normal or early retirement;
2. to reduce the actuarial adjustment for early retirement; '
3. to increase the amount of PERS service used to determine the employee's benefit amount.
The cost of the program is shared between the Plan and the employees. PERS participating
employees that were peace officers were required to contribute 15 %, and all other participating
employees were required to contribute 12.5% of their annual compensation for the calendar year in which
they terminated employment to participate in the program. This may be paid in a lump sum or as
indebtedness which will result in an actuarial reduction in the benefit. The employer is required to pay the
remaining obligation within three years after the year in which an employee retires. The total amount that
the City and Hospital are liable for under this program is $68,738 and $73,641 respectively.
INVESTMENTS I
PERS does not own any bonds or other debt instruments of any kind of the City.
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FUNDING STATUS AND PROGRESS
The pension benefit obligation is a standardized disclosure measure of the present value of
pension benefits, adjusted for the effects of projected salary increases and any step -rate benefits,
estimated to be payable in the future as a result of employee service to date. The measure is
independent of the actuarial funding method used to determine contribution to the PERS. Further, the
measure, which is the actuarial present value of credited projected benefits, is intended to allow
comparisons between employers and help users assess, on a going- concern basis, the Plan's funding
status and progress made in accumulating sufficient assets to pay benefits when due. The pension
benefit obligation was calculated as a part of the actuarial valuation performed as of June 30, 1987 (latest
available).
Significant actuarial assumptions used to calculate the pension benefit obligations of PERS are
identical to those used for funding purposes. The assumptions are:
1. Investment interest at 9% compounded annually, net of investment expenses.
2. Salary increases are 6.5% per year for the first five years and 5.5% per year thereafter.
3_ Health cost inflation is 9% per year.
4. Mortality calculated with the 1984 Unisex Pension Mortality Table set back 1 112 years.
The pension benefit obligation of PERS as calculated in the most recent actuarial valuation is as
follows (in thousands):
There were no changes in the PERS actuarial method or in the assumptions from the previous
valuation. There were, however, changes in benefit provisions of PERS. Post retirement pension
adjustments were indexed to the consumer price index, making the adjustments guaranteed and more
predictable. Benefit and retirement age was raised from 55 to 60 for employees hired after July 1, 1986.
These changes had the effect of increasing the pension benefit obligation at June 30, 1987, for the City
by $200,000 and the Hospital by $60,000.
ACTUARIALLY DETERMINED CONTRIBUTION REQUIREMENTS AND CONTRIBUTION
The funding policies for PERS provide for actuarially determined periodic contribution rates that
change over time to assure sufficient assets are accumulated to meet the obligation of the plans. The
actuarial funding method used by PERS is the projected unit credit method.
37
City Hospital
Retirees and beneficiaries currently receiving benefits
and terminated employees not yet receiving benefits 688 142
Current employees:
Accumulated employee contributions including allocated
investment earnings 396 61
Employer- financed vested 1,769 930
Employer- financed non - vested 235 261
Total pension benefit obligation 3,088 1,394
Net assets available for benefits, valuation based upon the
three -year average ratio between market and book values
except that fixed income investments are valued at book value 3,671 369
Unfunded pension benefit obligation EL83I a 1 025
There were no changes in the PERS actuarial method or in the assumptions from the previous
valuation. There were, however, changes in benefit provisions of PERS. Post retirement pension
adjustments were indexed to the consumer price index, making the adjustments guaranteed and more
predictable. Benefit and retirement age was raised from 55 to 60 for employees hired after July 1, 1986.
These changes had the effect of increasing the pension benefit obligation at June 30, 1987, for the City
by $200,000 and the Hospital by $60,000.
ACTUARIALLY DETERMINED CONTRIBUTION REQUIREMENTS AND CONTRIBUTION
The funding policies for PERS provide for actuarially determined periodic contribution rates that
change over time to assure sufficient assets are accumulated to meet the obligation of the plans. The
actuarial funding method used by PERS is the projected unit credit method.
37
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Significant actuarial assumptions used to calculate the pension benefit obligations are identical to
those used for funding purposes.
The amount that employers contribute is made up of two components: (1) a consolidated rate
which is uniform for all employers, which covers all future service liabilities; and (2) a past service rate,
determined separately for each employer, sufficient to amortize such employer's unfunded past service
liability with level payments over 25 years. Funding surpluses are amortized over 5 years.
For fiscal year 1988, PERS employer contributions were made in accordance with actuarially
determined requirements and were 9.74% and 19.04% of covered payroll of the City and Hospital,
respectively. Net assets available for benefits were 119% and 26% of the pension benefit obligation of
the City and Hospital, respectively. The unfunded pension benefit obligations were (27.2)% and 107.5%
of covered payroll of the City and Hospital, respectively. Historical trend information prior to fiscal year
1988 is not available.
HISTORICAL TREND INFORMATION
Additional trend information is available for PEAS system taken as a whole in the State of Alaska
Public Employees' actuarial valuation reports as of June 30, 1987, (latest available), and the State of
Alaska Public Employee's Annual Financial Report for fiscal year ended June 30, 1988. The information
contained therein provides information about progress made in accumulating sufficient assets to pay
benefits when due.
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS
Electric Fund employees are members of the International Brotherhood of Electrical Workers,
which maintains its own defined contribution pension plan. The City's contribution rate for 1988 was $3.40
per compensable hour, for a total contribution of $50,759.
DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of
their salary until future years. The deferred compensation is not available to employees until termination,
retirement, death, or unforeseeable emergency.
All amounts of compensation deferred under the plan, all property and rights purchased with
those amounts, and all income attributable to those amounts, property, or rights are (until paid or made
available to the employee or other beneficiary) solely the property and rights of the City (without being
restricted to the provisions of benefits under the plan), subject only to the claims of the City's general
creditors. Participants' rights under the plan are equal to the fair market value of the deferred account for
each participant.
It is the opinion of the City's legal counsel that the City has no liability for losses under the plan
but does have the duty of due care that would be required of an ordinary prudent investor. The City
believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future.
8. CAPITALIZED LEASE
General
The Hospital leases equipment under long -term lease agreements. Capitalized leased assets at
June 30, 1988 consists of the following:
Equipment 26,400
Less accumulated amortization 5,280
Note
21,120
Minimum lease payments for capital leases as of June 30, 1988 are as follows:
1989 7,394
1990 7,394
1991 7,394
1992 7.395
Total minimum lease payments 29,577
Less interest 8,777
Present value of minimum lease payments 20,800
Less current portion 5,200
Capitalized lease obligation JA5,600
9. LONG -TERM DEBT
The following is a summary of long -term debt transactions of the City for the year ended June 30,
1988:
General obligation bonds of $9,895,000 have been recorded in the Enterprise Funds which
benefited from proceeds of such bond issues. Principal and interest expenditures related to the note
payable are paid with General Fund monies.
Bonds payable at June 30, 1988 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 3.375 %. $ 45,000
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°/x. 675,000
39
General Accrued
Obligation Annual Revenue Note
Bonds Leave Bonds Payable Total
Outstanding at July 1, 1987 8,072,000 133,141 67,000 48,158 8,320,299
Debt retired 277,000 67,000 18,575 362,575
Debt issued 2,550,000 2,550,000
Additions to accrued leave 16,151 16,151
Outstanding at June 30, 1988 10.345,000 149 292 29 583 10 523,875
General obligation bonds of $9,895,000 have been recorded in the Enterprise Funds which
benefited from proceeds of such bond issues. Principal and interest expenditures related to the note
payable are paid with General Fund monies.
Bonds payable at June 30, 1988 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 3.375 %. $ 45,000
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°/x. 675,000
39
10
40
1,700,000 1980 Electric Serial Bonds due in annual installments of $50,000
to $155,000 through January 1, 2001; interest at 7 %. 1,345,000
5,000,000 1984 Electric Serial Bonds due in annual installments of $100,000
to $205,000 through October 1, 1994; interest at 12.5% to 9.5 %. 1,075,000
4,845,472 1986 Electric Serial Bonds due in annual installments of $46,000
to $565,000 through October 1, 2004; interest at 5% to 7.5 %. 4,655,000
2,550,000 1987 Harbor /General Government Serial Bonds due in annual installments
of $70,000 to $240,000 through December 1, 2007; interest at 5.75% to 8.25 %. 2,550,000
Note Payable:
49,584 1987 note payable due in monthly installments of $1,456 through
April, 1990, including interest at 9.5 %.
J
10,345,000 '
i
29,583
The annual requirements to amortize all debt outstanding as of June 30, 1988, including interest
payments of $7,788,655 are as follows:
DEBT EXTINGUISHMENT
On August 1, 1986, the City issued $4,845,472 in General Obligation Bonds with an average
interest rate of 7.6% to advance refund $3,655,000 of the $4,920,000 remaining outstanding 1984
General Obligation bonds with an average interest rate of 11.5 %. The net proceeds were used to
purchase U. S. government securities. Those securities were deposited in an irrevocable trust with an
escrow agent to provide for debt service due in 1995 and beyond on the 1984 General Obligation bonds.
As a result, the 1984 General Obligation bonds are considered to be partially defeased and $3,655,000 of
the liability for those bonds has been removed from the Electric Fund. Outstanding principal of the
defeased bonds is $1,075,000 at June 30, 1988.
Although the advance refunding resulted in the recognition of an accounting loss of $1,190,472
for the year ended June 30, 1987, the Electric Fund in effect reduced its aggregated debt service
1
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I ,,
General
Fiscal Obligation Note
Years Ending Bonds Payable Total
1989 1,068,569 20,066 1,088,635
1990 1,138,861 15,597 1,154,458
1991 1,127,530 1,127,530
1992 1,127,552 1,127,552
1993 1,113,771 1,113, 771
1994 -1998 5,385,695 5,385,695
1999 -2003 4,701,752 4,701,752
2004 - 2008 2.463.845 2,463,845
18,127.575 135,663 18,163,238
DEBT EXTINGUISHMENT
On August 1, 1986, the City issued $4,845,472 in General Obligation Bonds with an average
interest rate of 7.6% to advance refund $3,655,000 of the $4,920,000 remaining outstanding 1984
General Obligation bonds with an average interest rate of 11.5 %. The net proceeds were used to
purchase U. S. government securities. Those securities were deposited in an irrevocable trust with an
escrow agent to provide for debt service due in 1995 and beyond on the 1984 General Obligation bonds.
As a result, the 1984 General Obligation bonds are considered to be partially defeased and $3,655,000 of
the liability for those bonds has been removed from the Electric Fund. Outstanding principal of the
defeased bonds is $1,075,000 at June 30, 1988.
Although the advance refunding resulted in the recognition of an accounting loss of $1,190,472
for the year ended June 30, 1987, the Electric Fund in effect reduced its aggregated debt service
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payments by $191,781 over the next 18 years and obtained an economic gain (difference between the
present values of the old and new debt service payments) of $115,069.
11. INTERFUND RECEIVABLES AND PAYABLES
1 41
At June 30, 1988, interfund receivables and payables consisted of the following:
Interfund Interfund
Receivable Payable
General Fund 1,432,073
Capital Projects Funds
Community Center 500,659
Handicap Access 28,727
Flood disaster 435,746
Marine Industrial Center 250,589 38,892
Other 4,918 10,598
Special Revenue Funds
Enhancement Program 36,954
Navy Homeport 3,090
Springg Creek Correctional Center 64,587
Day Care Assistance 5
Marine Industrial Center 264,642
Litter Control 3,491
Enterprise Funds
Electric 551,824
Water /Sewer 1,431,843
Hospital 250 250
Harbor 3.401.782
4 230 460 4 230 460
Included in the Harbor Enterprise Fund's $3,401,782 interfund receivable shown above is $1,906,659 of bond
proceeds. These bond proceeds are shown on the accompanying combined financial statements as restricted
cash rather than an interfund receivable.
SEGMENT INFORMATION FOR ENTERPRISE FUNDS12.
The City maintains four Enterprise Funds which provide electric, water /sewer, harbor and hospital
services. Segment information for the year ended June 30, 1988 is as follows:
Water/ Total
Electric Sewer Harbor Hospital Enterprise
Fund Fund Fund Fund Fund
Operating revenues $ 3,739,787 $ 647,848 885,240 $1,488,348 6,761,223
Depreciation expense 871,381 362,513 99,433 58,587 1,391,914
Operating income (loss) 5,984 (250,942) 125,987) (747,171) 1,118,116)
Net income (loss) (563,767) (387,575) 211,690 (371,461) 1,111,113)
Contributions to funds 66,631 -- 75,000 -- 141,631
Property, plant and
equipment additions 242,747 12,799 180,086 2,332 437,964
Working capital (819,638) (1,391,085) 2,728,212 113,774 631,263
Total assets 19,318,411 9,986,238 5,025,248 1,039,425 35,369,322
Bonds and other
long term liabilities 6,850,000 644,000 2,100,000 15,600 9,609,600
Total fund equity 11,131,235 7,806,959 2,117,249 570,211 21,625,654
1 41
13.
14
15.
42
RESTATEMENT ,
Adjustments have been made to the July 1, 1987 fund balances. The following changes were '
made:
a. The operations of the Seward Marine Industrial Center (SMIC), previously reported as a part of
the Harbor Enterprise Fund, have been established as a separate Special Revenue Fund. The
effect of the restatement on the Harbor Enterprise Fund was to increase beginning fund balance
by $207,945.
b. Two funds that had previously been classified as capital project funds have been determined to ,
be more appropriately special revenue funds. The funds, "1986 Flood Disaster" and "Litter
Control" have been reclassified accordingly. The effect of the restatement was to increase the
beginning fund balance of Capital Projects Funds by $54,772 and decrease the beginning fund '
balance of Special Revenue Funds by the same amount.
Three funds that have not previously appeared in the City's financial statements have been
added in fiscal year 1988. These funds, "State Revenue Sharing ", "Day Care Assistance" and
Spring Creek Correctional Center", have been added to the Special Revenue Fund type. Each
of these funds is used to account for the pass - through of external funds. The effect of this '
restatement was to increase the beginning fund balance of Special Revenue Funds by $6,852.
In all cases, the comparative numbers for the fiscal year ended June 30, 1987 have been
restated accordingly. I
SPRING CREEK CORRECTIONAL CENTER ,
In 1985, the City undertook the financing and construction of a 320 bed, maximum security
correctional facility on behalf of the State of Alaska. The facility was financed with non - recourse '
Certificates of Lease Participation and leased to the State under the terms of long term lease signed in
1985. The facility is currently being operated by the State. Technically, the City is the owner of the
facility. However, under the terms of both the financing and lease agreements, there is no possibility of
the City ever becoming liable for the debt or being obliged to take actual possession of the facility. ,
Consequently, the City has not included the value of the facility in its General Fixed Assets. Neither has
the City included the construction costs of the facility in its Capital Projects Funds. Payments for all costs
of construction were made directly by the project Trustee, Rainier National Bank, under the terms of a '
Trust Indenture executed by the parties in 1985.
The City has maintained a Special Revenue Fund, "Spring Creek Correctional Center', to
account for its administrative costs in monitoring construction of the facility. These administrative costs '
have been reimbursed to the City by the Project Trustee from project funds.
COMMITMENTS AND CONTINGENCIES
Litigation was initiated against the City seeking punitive damages for a suicide that occurred in '
the Seward City sail on November 20, 1984. The tenders of defense of this action has been accepted by
the City's insurance carrier who, at this stage, is in the process of finalizing a settlement of the case. The
settlement will be funded entirely by the City's insurance broker and insurers. ,
On June 30, 1988, litigation was initiated against the City seeking damages for an allegedly
wrongful death which occurred on City property on July 4, 1986. At this point, the amount of damages '
1
1
sought by the plaintiffs is unspecified. The defense of this case has been tendered to, and accepted by,
the City's general liability underwriter. The insurer has retained an attorney to handle the case on behalf
of the City. At this point Counsel's opinion is that it is premature to assess the extent of the City's liability,
if any.
The electrical subcontractor on Phase IV of the Seward Marine Industrial Center Shiplift
Construction and Installation Project has filed a claim for costs and damages against the City as owner,
the general contractor, and the general contractor's payment bond. The subcontractor seeks damages in
excess of $380,000 against defendants, jointly and punitive damages in excess of $500,000. The City
has entered into a joint defense agreement with it's former project management firm. Under the terms of
the agreement, the project management firm is fully responsible for defense of the issue and the City's
maximum settlement exposure is $200,000. Counsel's opinion is that the City's potential liability, if any,
will be significantly less than the maximum under the joint defense agreement.
In March, 1988 a construction related claim was filed by a general contractor against the City as
owner of the Spring Creek Correctional Center. The correctional center is operated by the State of
Alaska under the terms of a long term lease with the City. Under the terms of a 1985 Project
Management Services Agreement between the City and the state, the state agreed to provide
construction management services for the City on the project. Under additional terms of this agreement,
the state agreed to indemnify, defend and hold harmless the City from a wide range of construction
related claims. At this point, the parties to the dispute have signed an agreement providing for the
arbitration of the claims. In the agreement, the contractor agrees to completely release the City from all
responsibility for the claims. Counsel is of the opinion that the City will not be financially exposed with
respect to the construction of the Spring Creek Correctional Center in that all known claims are being
defended by the State of Alaska.
A claim has been filed against the City in Superior Court alleging negligence on the part of the
City during a flood disaster in October, 1986. The complaint alleges that certain flood control measures
taken by the City during the emergency caused damage to property owned by the plaintiffs. The City has
tendered defense of the case to its insurance carriers and tender has been accepted, apparently without
reservation.
A wrongful discharge claim filed by an employee of the City was settled in favor of the employee.
Under the terms of the arbitration settlement, the City was obliged to offer re- employment and pay all
back wages. The total of the back pay settlement was $105,848. The settlement has been accrued as a
fiscal year 1988 expense in the Electric Enterprise Fund.
Significant financial assistance has been received by the City from numerous 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, 1988.
1 43
1
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS 1
Statements and Schedules
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GENERALFUND
The General Fund is established to account for the financial operations of the City of Seward which are not
accounted for in any other fund.
Revenues for this fund are recorded by source. Principal sources of revenue are property taxes, sales taxes,
intergovernmental revenue and charges for services.
Expenditures are recorded first by function, then by activity and object of expenditure. General Fund
expenditures are made primarily for the operations of basic municipal services such as police and fire protection,
recreation, planning, legal and administrative services.
1 45
CITY OF SEWARD
GENERALFUND
BALANCE SHEET
June 30, 1988
With comparative totals for June 30,1987
ASSETS
1988 1987
Cash on hand 650 650
Equity in Central Treasury 3,556,847 1,797,244
3,557,497 1,797,894
Receivables
Accounts 1,083,804 1,036,838
Accrued interest 23,170 17,239
Real property taxes 37,555 22,113
Personal property taxes 88,005 101,145
Sales taxes 650 12,909
Rents 6,258
Grants 4,250 4,250
Assessments 353,664 379,042
1,591,098 1,579,794
Less allowance for uncollectibles 70,667 74,281)
Accounts and taxes receivable, net 1,520,431 1,505,513
Due from other funds 31,235
Prepaid insurance 66,920 198,289
Total assets 5,144,848 3,532,931
1
LIABILITIES
Liabilities
AND FUND BALANCE
Accounts payable 190,531 156,274
Due to other funds
Accrued liabilities
1,432,073
132,480 100,623
Funds held in trust 6,600 1,708
Deferred revenues 341,718 450,323
Total liabilities 2,103,402 708,928
Fund balance
Reserved for prepaids 66,920 198,289
Unreserved:
Undesignated 2,974,526
3,041,446
2,625,714
2,824,003
Total liabilities and fund balance 5,144,848 3,532,931
46 t
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1
1
1
1
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CITY OF SEWARD
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
Year ended June 30, 1988
With comparative totals for year ended June 30,1987
47
Variance
Favorable
REVENUES Budget Actual Unfavorable) 1987
Taxes
General property 355,432 535,312 179,880 393,815
Sales 806,240 783,122 23,118 448,304
Total taxes 1,161,672 1,318,434 156,762 842,119
Licenses & permits
Building permits 50,000 46,955 3,045) 36,692
Taxi permits 500 730 230 1,110
Animal control licenses 300 790 490 442
Auto license commissions 20,000 23,356 3,356 23,340
Miscellaneous 250 850 600 445
Total licenses and permits 71,050 72,681 1,631 62,029
Intergovernmental revenues
Federal revenue sharing 13,550
State of Alaska shared revenues
General revenue sharing 153,081 184,288 31,207 302,298
Municipal assistance 226,682 231,661 5,179 271,368
Fish tax 82,500 166,778 84,278 151,669
Liquor tax 13,125 22,761 9,636 15,889
Amusement tax 375 240 135 408
Total intergovernmental revenues 475,763 605,928 130,165 755,182
Charges for services
Administrative 883,507 1,243,947 360,440 944,289
Rents and leases 294,413 301,402 6,989 294,583
Computer services 36,000 36,000 36,000
Television 36,000 11,388 24,612) 46,015
Jail contract 240,000 241,000 1,000 240,000
Police contract 41,916 41,634 282) 41,916
Railroad surveillance 12,000 12,000 15,000
Work orders 80,740 79,950 790) 109,656
Recreation 83,250 90,253 7,003 23,525
Other 4,750 8,086 3,336 7,102
Total charges for services 1,712,576 2,065,660 353,084 1,758,086
Fines and forfeits
Fines and bails 13,000 14,465 1,465 13,495
Miscellaneous revenues
Interest 158,000 180,774 22,774 128,709
Sale of gravel 7,000 20,770 13,770 126,697
Other 20,600 23,397 2,797 20,702
Total miscellaneous revenues 185,600 224,941 39,341 276,108
Total revenues 3,619,661 4,302,109 682,448 3,707,019
47
CITY OF SEWARD
GENERALFUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (cont.)
BUDGET AND ACTUAL
Year ended June 30, 1988
With comparative totals for year ended June 30,1987
EXPENDITURES
General government
Mayor and Council
Personal services
Supplies
Other services and charges
Capital outlays
Total Mayor and Council
City Manager
Personal services
Supplies
Other services and charges
Capital outlays
Total City Manager
City Clerk
Personal services
Supplies
Other services and charges
Capital outlays
Total City Clerk
Finance
Personal services
Supplies
Other services and charges
Capital outlays
Total Finance
Community development
Personal services
Supplies
Other services and charges
Capital outlays
Total community development
General government services
Personal services
Supplies
Other services and charges
Capital outlays
Total general government services
Total general government
48
1
1
1
1
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1
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1
1
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1
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Variance
Favorable
Budget Actual Unfavorable) 1987
19,462 20,053 591) 15,303
12,000 17,078 5,078) 12,141
234,275 288,690 54,415) 212,889
265,737 325,821 60,084 240,333
181,971 143,761 38,210 177,148
2,500 3,312 812) 4,312
1 8,700 19,180 480) 1 5,706
400 400
203,571 166,253 37,318 197,166
86,582 84,934 1,648 96,292
3,000 2,115 885 3,426
7,690 7,970 280) 9,223
876 5,425 4,549) 2,943
98,148 100,444 2,296 111,884
275,980 253,941 22,039 241,833
15,000 22,476 7,476) 15,862
20,950 23,483 2,533) 16,943
6,000 10,854 4( ,854) 8,077
317,930 310,754 7,176 282,715
56,749 52,230 4,519 57,538
5,000 4,657 343 3,831
57,625 42,999 14,626 49,755
10,000 10,000
129,374 99,886 29,488 111,124
32,000 22,246 9,754 26,711
3,000 14,045 11,045) 8,548
499,690 523,814 24,124) 427,643
63,000 62,441 559 8,373
597,690 622,546 24( ,856) 471,275
1,612,450 1,625,704 13,254 1,414,497
1
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ICITY OF SEWARD
1 49
GENERALFUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (CONT.)
BUDGET AND ACTUAL
Year ended June 30, 1988
With comparative totals for year ended June 30, 1987
Variance
Favorable
EXPENDITURES Budget Actual Unfavorable) 1987
Public Safety
Police, jail, animal control
Personal services 844,001 $ 855,236 11,235) 858,509
Supplies 14,500 15,876 1,376) 15,402
Other services and charges 73,650 111,537 37,887) 81,233
Capital outlays 3,094 3,094 16,547
Total police 932,151 985,743 53,5K) _ 971,691
Fire
I Personal services 112,817 108,214 4,603 110,968
Supplies 7,580 13,919 6,339) 14,386
Other services and charges 83,710 52,903 30,807 46,499
Capital outlays 11,295 11,832 537 6,482
Total fire 215,402 186,868 28,534 178,335
Building inspection/engineering
Personal services 176,959 167,693 9,266 173,850
Supplies 1,150 3,148 1,998) 1,552
Other services and charges 21,650 21,068 582 5,633
Capital outlays 4,713 4,713
Total building inspection 199,759 196,622 3,137 181,035
Total public safety 1,347,312 1,369,233 21,921 1,331,061
Public Works
Streets
Personal services 191,895 203,155 11,260) 235,261
Supplies 46,214 38,282 7,932 40,872
Other services and charges 65,989 30,948 35,041 26,420)
Capital outlays 12,000 12,000
Total streets 316,098 272,385 43,713 249,713
Shop
Personal services 171,765 132,061 39,704 159,615
Supplies 5,100 1,800 3,300 3,577
Other services and charges 34,300 33,102 1,198 18,190
Capital outlays
Total shop
17,000
228,165
18,434
185,397
1,434
42,768 181,382
Buildings
Personal services 46,446 45,912 534 44,963
Supplies 4,900 4,518 382 4,506
Other services and charges 55,750 52,465 3,285 35,395
Capital outlays
Total buildings 107,096 102,895 4,201 84,864
Total public works 651,359 560,677 90,682 515,959
1 49
CITY OF SEWARD
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (CONT.)
BUDGET AND ACTUAL
Year ended June 30, 1988
With comparative totals for year ended June 30, 1987
EXPENDITURES
Parks and recreation
Personal services
Supplies
Other services and charges
Capital outlays
Total parks and recreation
Debt Service
Principal
Interest
Fiscal Agent Fees
Total debt service
Total expenditures
OTHER FINANCING USES
Operating transfers out
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES
FUND BALANCE, beginning of year
Residual Equity Transfers
FUND BALANCE, end of year
50
20,206 (20,206) --
20,206 20,206 --
3,886,852 3,855,682 31,170 3,453,513
231,000 231,000 -- 1,098,944
498,191) 215,427 713,618 (845,438)
2,824,001 2,824,001 -- 3,669,439
2,018 2,018 --
2,325,810 $ 3,041,446 $ 715,636 $ 2,824,001
Variance
Favorable
Budget Actual Unfavorable) 1987
167,116 175,360 8,244) $ 134,269
3,250 6,894 3,644) 5,885
102,265 92,919 9,346 51,842
3,100 4,689 1,589)
275,731 279,862 4,131 191,996
20,206 (20,206) --
20,206 20,206 --
3,886,852 3,855,682 31,170 3,453,513
231,000 231,000 -- 1,098,944
498,191) 215,427 713,618 (845,438)
2,824,001 2,824,001 -- 3,669,439
2,018 2,018 --
2,325,810 $ 3,041,446 $ 715,636 $ 2,824,001
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for expenditures associated with dedicated or restricted revenue
sources.
State Revenue Sharing - to account for the state revenue sharing received by the City on behalf of local health
care and social service entities. All monies in this fund are passed directly through to the sub - recipients.
Day Care Assistance - to account for the state funded day care assistance grant program. Monies are
distributed directly to local day care providers.
Enhancement Program - to account for the City's ongoing effort to enhance it's downtown business district.
Funds have been provided by City Council appropriation.
Marine Industrial Center - to account for the operations of the Seward Marine Industrial Center (SMIC). The
SMIC combines a fully equipped ship repair facility, including the capability to service ships up to 300 feet in
length and 3,600 dead - weight tons in weight, with over 100 acres of marine related industrial and commercial
uplands. User charges are established to recover the costs of operation, exclusive of depreciation.
Navy HomepOrt - to account for the efforts of the City to develop a plan to induce the U.S. Navy to permanently
station one or more vessels in Seward. Funding has been provided by City Council appropriation.
Spring Creek Correctional Center - to account for the City's administrative costs incurred in oversight of the
construction of a maximum security correctional facility for the State of Alaska. Revenues are provided from an
administrative budget within the construction fund for the facility.
Flood Disaster - to account for the repairs and replacement of roads and other facilities damaged in October,
1986 by typhoon Karmen. Funding is provided by the State of Alaska, the federal government and local sources.
Litter Control - to account for the costs of a City administered litter control program. Program employs local
youth and is funded by a grant from the non - profit, Alaskans for Litter Prevention and Recycling.
51
CITY OF SEWARD
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEETS
June 30,1988
With comparative totals for June 30, 1987
ASSETS
Due from other funds
Grants receivable
Accounts receivable
Total assets
LIABILITIES AND EUND BALANCES
LIABILITIES
Accounts and contracts payable
Due to other funds
Deferred revenues
Total liabilities
FUND BALANCES (DEFICITS)
Unreserved:
Undesignated
Total liabilities and fund balances
52
State
Revenue Day Care Enhancement
Sharing Assistance Program
36,954
10,072 - --
5 - --
10,077 $ 36,954
10,072 $ 1,105
5 - --
10,077 1,105
35,849
10,077 $ 36,954
1
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c
i
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Marine Spring Creek
Industrial Navy Correctional Flood Litter Totals
Center Homeport Center Disaster Control 1988 1987 restated)
3,090 $ - -- $ - -- $ 3,491 $ 43,535 $ 1,449
435,751 - -- 445,823 234,403
20,862 - -- 175,249 - -- - -- 196,116 - --
20,862 $ 3,090 $ 17 $ 435,751 $ 3,491 $ 685,474 $ 235,852
4,589 $ - --
264,642 - --
269,231 - --
102,010 $ 5 $
64,587 435,746
166,597 435,751
117,781 $ 4,949
764,980 486,768
2,500 2,500 - --
2,500 885,261 491,717
248,369 3,090 8,652 - -- 991 199,787 255,865
20,862 $ 3,090 175,249 $ 435,751 $ 3,491 685,474 235,852
6N
CITY OF SEWARD
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year ended June 30, 1988
With comparative totals for June 30, 1987
REVENUES
State Grants
Federal Grants
Local Sources
Total revenues
EXPENDITURES
Salaries
Supplies & materials
Other operating expenditures
Total expenditures
Excess of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES
Operating transfers in
Excess of Revenues and Other Sources
Over (Under) Expenditures
FUND BALANCES (DEFICITS), beginning of year
FUND BALANCES (DEFICITS), end of year
M
State
Revenue Day Care Enhancement
Sharing Assistance Program
237,851 58,779 $ - --
237,851 58,779 - --
24,151
237,851 58,779 - --
237,851 58,779 24,151
24,151)
60,000
35,849
35,849
1
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Marine Spring Creek
Industrial Navy Correctional Flood Litter Totals
Center Homeport Center Disaster Control 1988 1987 (restated)
201,348 497,978 1,382,372
124,354 373,191 2,054 499,599 70,628
124,354 373,191 201,348 2,054 997,577 1,453,000
84,336 - -- 2,069 86,405 - --
2,251 6,910 104,255 145,570 - -- 283,137 2,942
162,527 - -- 182,800 - -- - -- 641,957 1,644,742
164,778 6,910 371,391 145,570 2,069 1,011,499 1,647,684
40,424) (6,910) 1,800 55,778
40,424)
207,945
10,000 - -- - --
3,090 1,800 55,778
15) (13,922) (194,684)
70,000 - --
15) 56,078 (194,684)
6,852 55,778 1,006 255,865 61,181
J?IL3691 $ 3,090 $ 8,652 $ - -- $ 991 $ 199,78 $ 255,865
55
THIS PAGE INTENTIONALLY LEFT BLANK
56
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CAPITAL PROJECT FUNDS
Capital Project 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.
Community Center - to account for the acquisition of a combination Senior Citizens and Community Center.
Financing is provided by grants from the Slate of Alaska and the proceeds of a 1987, $450,000 City of Seward
General Obligation Bond issue.
Handicap Access - to account for structural modifications to the city's administrative building to permit better
access and use by disabled persons. Financing is provided by a grant from the State of Alaska.
IOther Protects - to account for miscellaneous capital improvement projects financed primarily by state grants.
Seward Marine Industrial Center - to account for the various phases of construction of the Marine Industrial
Center. The current projects involve the installation of a ship transfer system designed to move large vessels
from the city's 3,600 dead -weight ton syncrolift to privately operated vessel repair stations. Funding is provided
by a combination of federal, slate and local contributions.
1 67
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEETS
June 30, 1988
With comparative totals for June 30,1987
ASSETS
Due from other funds
Grants receivable
Accounts receivable
Total assets
LIABILITIES AND FUN12 BALANCES
LIABILITIES
Accounts and contracts payable
Due to other funds
Revenues received in advance of construction
Total liabilities
FUND BALANCES
Unreserved:
Undesignated
Total liabilities and fund balances
58
Community Handicap
Center Access Other
500,659 $ 28,727 $ 4,918
52,149 -- 10,598
552,808 $ 28,727 $ 15,516
1,080 $ - -- $ 1,118
10,598
95,000 28,727 3,800
96,080 28,727 15,516
456,728 - -- - --
552,808 $ 28,727 $ 15,516
1
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Seward Marine
Industrial Totals
Center 1988 1987 (restated)
250,589 $ 784,893 $ 1,219,469
30,744 93,491 54,152
81,476
281,333 $ 878,384 $ 1,355,097
18,064 $ 20,262 $ 63,340
38,892 49,490 89,485
130,796 258,323 438,607
187,752 328,075 591,432
93,581 550,309 763,665
281,333 $ 878,384 $ 1,355,097
59
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year ended June 30, 1988
With comparative totals for year ended June 30, 1987
REVENUES
State Grants
Federal Grants
Local Sources
Total revenues
EXPENDITURES
Construction
Architect, engineering and all other
Land, buildings and equipment
Total expenditures
Excess of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES
Operating transfers in (out)
General Obligation Bond proceeds
Excess of Revenues and Other Sources
Over (Under) Expenditures
FUND BALANCES (DEFICITS), beginning of year
RESIDUAL EQUITY TRANSFERS
FUND BALANCES, end of year
60
Community
Center
90,504
19,370
109,874
14,639
77,821
92,460
17,414
439,314
456,728
456,728
Handicap
Access Other
473 $ 1,348
4,500
473 5,848
25,904
473 --
473 25,904
20,056)
11,812)
31,868)
33,886
2,018)
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Seward Marine
Industrial Totals
Center 1988 1987 (restated)
1,849,407 1,941,732 1,419,505
555,329 555,329
405 24,275 176,350
2,405,141 2,521,336 1,595,855
3,017,688 3,043,592 1,242,107
23,651 38,763 652,152
77,821
3,041,339 3,160,176 1,894,259
636,198) 638,840) 298,404)
11,812) 1,110,755
439,314
636,198) 211,338) 812,351
729,779 763,665 48,686)
2,018)
93,581 $ 550,309 $ 763,665
61
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
PROJECT TO DATE - SCHEDULE OF CONSTRUCTION PROJECTS
Beginning of projects through June 30,1988
TOTAL PROJECT AUTHORIZATION
REVENUES
State grants
Federal grants
Local Sources
Total revenues
TRANSFERS FROM OTHER FUNDS
Total revenues and transfers
EXPENDITURES
Construction
Architect, engineering and all other
Land, buildings and equipment
Total expenditures
62
Community Handicap
Center Access Other
916,773 $ 100,000 $ 654,076
90,504 $ 473 $ 564,374
458,684 - -- 6,000
549,188 473 570,374
81,132
549,188 $ 473 $ 651,506
107,952
14,639 473 541,537
77,821 --- --
92,460 $ 473 $ 649,489
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Seward Marine
Industrial
Center
5,255,459
1,999,204
555,329
7,057
2,561,590
2,519,827
5,081,417
2,834,467
2,153,363
4,987,830
63
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
SEWARD MARINE INDUSTRIAL CENTER
COMBINING BALANCE SHEETS
June 30,1988
With comparative totals for June 30,1987
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)
Unreserved:
Undesignated
Total liabilities and fund balances
64
SMIC Rails
Cradles
SMIC Civil Claims
Expansion Contingency_
139,401 $ 111,188
30,744 - -- -
30,744 $ 139,401 $ 111,188
4,804 $ 8,200 $ 51060
38,892 - -- - --
130,796 - --
43,696 138,996 5,060
12,9521 405 106,128
30,744 $ 139,401 $ 111,188
t
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1
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Totals
1988 1987
250,589 $ 1,047,792
30,744 38
281,333 $ 1,047,830
18,064 $ 41,808
38,892 - --
130,796 276,243
187,752 318,051
93,581 729,779
281,333 $ 1,047,830
65
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
SEWARD MARINE INDUSTRIAL CENTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year ended June 30,1988
With comparative totals for year ended June 30,1987
SMIC Rails SMIC Civil Claims
Cradles Expansion ContingencyREVENUES
State Grants 756,241 1,093,166
Federal Grants 555,329
Local Sources 405
Total revenues 1,311,570 1,093,571
EXPENDITURES
Construction 1,924,522 1,093,166
Architect, engineering and all other 23,651
Larxi, buildings and equipment
Total expenditures 1,924,522 1,093,166 23,651
Excess of Revenues
Over (Under) Expenditures 612,952) 405 23,651)
OTHER FINANCING SOURCES
Operating transfers in (out)
Excess of Revenues and Other Sources
Over (Under) Expenditures 612,952) 405 23,651)
FUND BALANCES (DEFICITS), beginning of year 600,000 129,779
FUND BALANCES (DEFICITS), end of year 12,952 405 106,126
66
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Totals
1988 1987
1,849,407 $ 144,474
555,329 - --
405 14,897
2,405,141 159,371
3,017,688
23,651 365,445
3,041,339 365,445
636,198) (206,074)
1,050,000
636,198) 843,926
729,779 114,147
93,581 $ 729,779
7
CITY OF SEWARD
SEWARD MARINE INDUSTRIAL CENTER
PROJECT TO DATE - SCHEDULE OF CONSTRUCTION PROJECTS
Beginning of projects through June 30,1988
TOTAL PROJECT AUTHORIZATION
REVENUES
SMIC Rails
Cradles
2,106,000
SMIC Civil
Expansion
1,224,000
Claims
Contingency_
1,925,459
State grants $ 906,000 $ 1,093,204 $ - --
Federal grants 555,329 - -- ---
Local Sources 1,020 405 5,632
Total revenues 1,462,349 1,093,609 5,632
TRANSFERS FROM OTHER FUNDS
Total revenues and transfers
EXPENDITURES
Construction
Architect, engineering and all other
Total expenditures
0
600,000 - -- 1,919,827
2,062,349 $ 1,093,609 $ 1,925,459
1,911,500 $ 922,967 $ - --
163,800 170,237 1,619,326
2,075,300 $ 1,093,204 $ 1,819,326
1
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Total
5,255,459
1,999,204
555,329
7,057
2,561,590
2,519,827
5,081,417
2,834,467
2,153,363
4,987,830
m
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
OTHER CAPITAL PROJECTS
COMBINING BALANCE SHEET
June 30, 1988
With comparative totals for June 30, 1987
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 construction
Total liabilities
FUND BALANCES
Unreserved;
Undesignated
Total liabilities and fund balances
70
Railroad Library Teen Center
Depot Renovation Renovation
1,118 $ -- $ --
10,598 --
1,118 $ 10,598 $ --
1,118 $ --
10,598 --
1,118 10,598 --
1,118 $ 10,598 $ --
J
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Marine
Emergency
Vessel
1983
Municipal
Assistance
Radio
Translator
Totals
1988 1987
3,800 $ 4,918 $ 104,426
10,598 54,116
3,800 $ 15;516 $ 158,542
3,800
3,800
1,118
10,598
3,800
15,516
11,223
43,951
69,482
124,656
33,886
3,800 $ 15,516 $ 158,542
71
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
OTHER CAPITAL PROJECTS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year ended June 30, 1988
With comparative totals for year ended June 30, 1987
REVENUES
State Grants
Federal Grants
Local Sources
Total revenues
EXPENDITURES
Construction
Architect, engineering and all other
Land, buildings and equipment
Total expenditures
Excess of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES
Operating transfers in (out)
Excess of Revenues and Other Sources
Over (Under) Expenditures
FUND BALANCES (DEFICITS), beginning of year
Residual equity transfers
FUND BALANCES (DEFICITS), end of year
72
Railroad Library
Depot Renovation
1,348
4,500
4,500 1,348
4,304 1,348
4,304 1,348
196 -
196
196
Teen Center
Renovation
20,252
20,252
20,252)
20,252)
18,627
1,625
Marine 1983
Emergency Municipal Radio Totals
Vessel Assistance Translator 1988 1987
1,348 $ 88,192
4,500 6,000
5,848 94,192
25,904 80,065
50,680
6,373
25,904 137,118
20,056) (42,926)
11,812 -- -- 11,812 76,812
11,812) -- -- (31,868) 33,886
11,812 3,447 -- 33,886 --
3,447 (2,018)--
33,886
73
CITY OF SEWARD
CAPITAL PROJECTS FUNDS
OTHER CAPITAL PROJECTS
PROJECT TO DATE - SCHEDULE OF CONSTRUCTION PROJECTS
Beginning of projects through June 30, 1988
TOTAL PROJECT AUTHORIZATION
REVENUES
State grants
Federal grants
Local Sources
Total revenues
TRANSFERS FROM OTHER FUNDS
Total revenues and transfers
EXPENDITURES
Construction
Architect, engineering and all other
Land, buildings and equipment
Total expenditures
74
Railroad Library Teen Center
Depot Renovation Renovation
4,500 $ 90,000 $ 25,000
4,500 $ 51,098 $ --
6,000 --
4,500 57,098 --
30,000 25,000
4,500 $ 87,098 $ 25,000
81,327 $ 26,625
4,304 5,771 --
4,304 $ 87,098 $ 26,625
Marine 1983
Emergency Municipal Radio
Vessel Assistance Translator Totals
496,576 $ 38,000 $ 654,076
474,576 $ 34,200 $ 564,374
6,000
474,576 34,200 570,374
22,000 4,132 81,132
496,576 $ 38,332 $ 651,506
107,952
493,130 38,332 541,537
493,130 $ 38,332 $ 649,489
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I
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 electrical service to the residents of the City and other areas within
the electric service area. All activities necessary to provide electrical service are accounted for in this fund,
including, but not limited to, administration, operations, maintenance, financing and related debt service, and
billing and collection activities.
Water /Sewer Fund - to account for the provision of water and sewer services to the residents of the City. All
activities necessary to provide electrical service are accounted for in this fund, including, but not limited to,
administration, operations, maintenance, financing and related debt service, and billing and collection activities.
Harbor Fund - to account for the provision of harbor and marine services to the public on Resurrection Bay. All
activities necessary to provide electrical service are accounted for in this fund, including, but not limited to,
administration, operations, maintenance, financing and related debt service, and billing and collection activities.
Hospital Fund - to account for the provision of hospital and health care services to the public in the greater
Seward area.
77
CITY OF SEWARD
ALL ENTERPRISE FUNDS
COMBINING BALANCE SHEET
June 30,1988
With comparative totals for June 30,1987
ASSETS
CURRENT ASSETS
Cash
Cash, Restricted
Cash with fiscal agent
Receivables
Accounts
Allowance for uncollectibles
Accounts receivable, net
Special assessments
Grants
Prepaids
Due from other funds
Inventory
Other assets
Total current assets
PROPERTY, PLANT AND EQUIPMENT
Less accumulated depreciation
Property, plant and equipment, net
Capitalized leased assets, net of
accumulated amortization of $5,720
Total assets
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
Current portion of capitalized lease obligation
Total current liabilities
OTHER LIABILITIES
Bonds payable, excluding current maturities
Capitalized lease obligation
Total liabilities
FUND EQUITY
Contributed capital
Less: amortization of contributions
in aid of construction
Retained earnings (deficit)
Total fund equity
Total liabilities & fund equity
78
Electric Water /Sewer
Fund Fund
37,271 3,027
14,000) 84)
23,271 2,943
12,440
54,563 83,378
439,704 45,433
517,538 144,194
23,601,928 12,391,193
4,801,055) 2,549,149)
18,800,873 9,842,044
19,318,411 9,986,238
267,584 8,473
82,516
43,735
551,824 1,431,843
166,517 18,963
225,000 76,000
1,337,176 1,535,279
6,850,000 644,000
8,187,176 2,179,279
11,981,623 10,710,194
1,016,042) 2,148,826)
165,654 754,409)
11,131,235 7,806,959
11,318,411 9,986,238
Harbor Fund
200
1,906,659
94,369
10,000)
84,369
1,495,124
49,859
3,536,211
2,088,242
599,205)
1,489,037
5,025,248
16,324
724,517
67,158
807,999
2,100,000
2,907,999
1,162,416
356,442)
1,311,275
2,117,249
5,025,248
Hospital
Fund
17,744)
617,426
150,000)
467,426
8,040
250
109,416
567,388
1,057,936
607,019)
450,917
21,120
1,039,425
339,262
250
108,902
5,200
453,614
15,600
469,214
570,211
570,211
1,039,425
Totals
1988 1987 (restated)
17,544) $ 160,801
1,906,659 - --
752,093
174,084)
578,009
12,440
137,941
8,040
1,495,374
594,553
49,859
4,765,331
39,139,299
8,556,428)
30,582,871
21,120
35,369,322
631,643
82,516
768,252
1,983,917
361,540
301,000
5,200
4,134,068
9,594,000
15,600
13,743,668
23,854,233
3,521,310)
1,292,731
21,625,654
35,369,322
69,126
731,655
11 3,772)
617,883
28,980
137,941
32,101
592,933
619,413
2,259,178
38,117,560
7,175,569)
30,941,991
25,960
33,227,129
328,992
82,669
16,985
2,001,912
338,810
344,000
5,200
3,118,568
7,795,000
19,934
10,933,502
23,416,327
2,695,514)
1,572,814
22,293,627
33,227,129
79
CITY OF SEWARD
ALL ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
Year ended June 30,1988
With Comparative totals for year ended June -30, 1987
NON - OPERATING REVENUES (EXPENSES)
Interest (53,195) (107,395)
Bond interest (543,772) (49,745)
Other 7,216 507
Fiscal agent fees - -- ---
Contributions - -- - --
Total non - operating revenues (expenses) (589,751) (156,633)
Income (loss) before operating transfers and extraordinary item (583,767) (407,575)
OPERATING TRANSFERS IN (OUT) 20,000 20,000
Net income (loss) before extraordinary item (563,767) (387,575)
LOSS ON DEBT EXTINGUISHMENT -- - --
Net income (loss) (563,767) (387,575)
TRANSFERS ON CONTRIBUTED ASSETS 417,685 366,875
Increase (decrease) in retained earnings (146,082) (20,700)
RETAINED EARNINGS (DEFICIT), beginning of year, restated 311,736 (733,7091
RETAINED EARNINGS (DEFICIT), end of year $ 165,654 $ (754,409)
80
Electric Water /Sewer
Fund Fund
OPERATING REVENUES
Residential sales 1,203,652 309,026
Commercial Sales 1,102,026 145,534
Industrial 210,584 31,187
Governmental sales 714,336 78,962
City of Seward sales 310,245 16,720
Moorage
Patient service revenues, net
Miscellaneous 198,944 66,419
Total operating revenues 3,739,787 647,848
OPERATING EXPENSES
Power 1,498,335
Distribution 196,941 100,595
Pumping 88,516
Supplies and maintenance 8,256
Patient and general service
Personal services
Administration and general 1,167,146 338,910
Depreciation 871,381 362,513
Total operating expenses 3,733,803 898,790
Operating income (loss) 5,984 250,942)
NON - OPERATING REVENUES (EXPENSES)
Interest (53,195) (107,395)
Bond interest (543,772) (49,745)
Other 7,216 507
Fiscal agent fees - -- ---
Contributions - -- - --
Total non - operating revenues (expenses) (589,751) (156,633)
Income (loss) before operating transfers and extraordinary item (583,767) (407,575)
OPERATING TRANSFERS IN (OUT) 20,000 20,000
Net income (loss) before extraordinary item (563,767) (387,575)
LOSS ON DEBT EXTINGUISHMENT -- - --
Net income (loss) (563,767) (387,575)
TRANSFERS ON CONTRIBUTED ASSETS 417,685 366,875
Increase (decrease) in retained earnings (146,082) (20,700)
RETAINED EARNINGS (DEFICIT), beginning of year, restated 311,736 (733,7091
RETAINED EARNINGS (DEFICIT), end of year $ 165,654 $ (754,409)
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Harbor
Fund
606,088
279,152
885,240
194,277
391,234
326,283
99,433
1,011,227
125,987
201,465
3,400
78,878
132,812
211,690
211,690
46,470
258,160
1,053,115
1,311,275
Hospital
1,426,729
61,619
1,488,348
1,202,810
974,122
58,587
2,235,519
747,171)
5,873
21,192
348,645
375,710
371,461)
371,461)
371,461)
371,461)
941,672
570,211
1988
1,512,678
1,247,560
241,771
793,298
326,965
606,088
1,426,729
606,134
6,761,223
1,498,335
297,536
88,516
202,533
1,202,810
391,234
2,806,461
1,391,914
7,879,339
1,118,116)
46,748
593,517)
32,315
348,645
165,809)
1,283,925)
172,812
1,111,113)
1,111,113)
831,030
280,083)
1,572,814
1,292,731
Totals
1987 (restated)
1,569,236
1,229,928
219,832
770,354
275,261
499,050
1,555,538
706,553
6,825,752
1,419,759
285,579
80,843
208,093
1,215,413
323,130
2,394,106
1,355,595
7,282,518
456,766
74,701
472,740)
22,614
500)
362,089
13,836)
470,602)
11,811)
482,413)
1,190,471)
1,672,884)
830,961
841,923)
2,414,737
1,572,814
81
CITY OF SEWARD
ALL ENTERPRISE FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
Year ended June 30, 1988
With comparative totals for year ended June 30,1987
Proceeds from long -term debt --
307,613 (25,062)
USES OF WORKING CAPITAL
Electric Water /Sewer
SOURCES OF WORKING CAPITAL Fund Fund
Operations
233,590 12,799
Earnings (loss) before extraordinary item 563,767) 387,575)
Item not requiring working capital -
458,590 88,799
Depreciation 871,380 362,513
Transfer of special assessment fund deficit
Working capital provided (used) by
operations before extraordinary item 307,613 25,062)
Extraordinary item - loss on debt extinguishment
Working capital provided (used) by operations 307,613 25,062)
Proceeds from long -term debt --
307,613 (25,062)
USES OF WORKING CAPITAL
Acquisition of property, plant and equipment,
net of contribution -in -aid 233,590 12,799
Current bond maturities 225,000 76,000
458,590 88,799
Increase (decrease) in working capital 150,977) 113,861
ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL
Increase (decrease) in current assets
Cash
Cash with fiscal agent 69,126)
Receivables
Accounts, net 131,760) 1,075)
Special assessments 16,541)
Other assets
Prepaids
Due from other funds
Inventory 23,451) 550
224,337) 17,066
Increase) decrease in current liabilities
Accounts and contracts payable 104,531) 6,469)
Customer deposits 155
Deferred revenues 42,821) 16,071
Due to other funds 184,508 101,263)
Accrued liabilities 11,951) 134)
Current maturities of bonds payable 48,000 5,000)
73,360 96,795)
Increase (decrease) in working capital 150,977) 113,861)
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Harbor Hospital
1,728,314
Totals
Fund Fund 1988 1987 (restated)
211,690 371,461) 1,111,113) 483,413)
99,433 60,955 1,394,281 1,357,963
30,967)
311,123 310,506) 283,168 843,583
1,190,471)
311,123 310,506) 283,168 346,888)
2,100,000 2,100,000 1,216,471
2,411,123 310,506) 2,383,168 869,583
335,527 5,265 587,181 265,670
4,334 305,334 450,693
335,527 9,599 892,515 716,363
2,075,596 $ (320,105) $ 1,490,653 $ 153,220
1,906,659 178,345) 1,728,314 44,905)
69,126) 4,925)
36,034 56,926 39,875) 159,233
16,541) 28,980
49,859 49,859
24,061) 24,061) 9,271
799,246 799,246 695,912)
1,959) 24,860) 214,752
2,791,798 147,439) 2,402,956 333,506
26,029 179,735) 264,706) 1,340,559
155 27,196
724,517) 751,267) 15,009)
83,245 793,493)
17,714) 7,069 22,730) 25,994)
43,000 46,533)
716,202) 172,666) 912,303) 486,726
2,075,596 320,105) 1,490,653 153,220
83
FIDUCIARY FUND
AGENCY FUND
Deferred ' Comgensatlon Fund -This fund accounts for the portion of employee's salaries which they have
elected to defer under Section 457 of the Internal Revenue Code. The City retains title to such monies until they '
are paid or made available to the employee by its agents, the ICMA Retirement Corporation, upon termination,
retirement, death or unforeseeable financial emergency.
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LASSETS
Restricted funds
LIABILITIESITIES
Due to City employees
CITY OF SEWARD
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Year ended June 30, 1988
Balance
July 1,
1987
815,171
Balance
June 30,
139,582 $ 154,953 $ 799,800
815,171 $ 139,582 $ 154,953 $ 799,800
85
GENERAL FIXED ASSETS ACCOUNT GROUP
The General Fixed Assets Group of Accounts is established for controlling the City's sizeable investment in fixed
assets, which are tangible assets of significant value having a life which extends beyond one 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.
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CITY OF SEWARD
SCHEDULE OF GENERAL FIXED ASSETS BY SOURCES
June 30, 1988
With comparative totals for June 30,1987
1988
GENERAL. FIXED ASSETS
Land $ 19,314,813
Buildings 6,642,836
Improvements other than buildings 38,070,008
Equipment 1,180,714
Construction work in progress - Capital Projects 5,123,399
Total general fixed assets $ 70,331,770
INVESTMENTS IN GENERAL. FIXED ASSETS FROM
Prior years data $ 54,051,100
Capital projects funds
State grants 11,413,203
General fund revenues 4,851,992
Federal revenue sharing 15,475
Total investment in general fixed assets $ 70,331,770
1987
19,252,372
6,529,112
38,070,008
1,119,888
4,076,343
69,047,723
54,051,100
10,315,049
4,666,099
15,475
69,047,723
87
CITY OF SEWARD
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - EQUIPMENT
BY FUNCTION AND ACTIVITY
Year ended June 30, 1988
GENERAL GOVERNMENT
Mayor and Council
City Manager
City Clerk
Finance
Economic development
General service
Total general government
PUBLIC SAFETY
Police
Jail
Animal control
Fire
Civil Defense
Engineering
Building Inspection
Total public safety
PUBLIC WORKS
Streets
Shop
Municipal building
Television
Total public works
PARKS AND RECREATION
Recreation
Teen Center
Total parks & recreation
Total equipment
0
Equipment Equipment
June 30, 1987 Additions Deductions June 30, 1988
12,720 12,720
40,599 40,599
25,387 6,197 31,584
115,269 9,987 125,256
27,099 27,099
91,620 91,620
312,694 16,184 328,878
153,381 153,381
20,408 3,094 23,502
11,979 11,979
209,360 13,427 222,787
2,483 2,483
73,108 4,712 206 77,614
129 129
470,848 21,233 206 491,875
260,677 81911 269,588
6,884 10,014 16,898
3,831 3,831
10,068 10,068
281,460 18,925 300,385
40,813 4,690 45,503
14,073 14,073
54,886 4,690 59,576
1,119,888 61,032 206 1,180,714
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1 89
GENERAL LONG -TERM DEBT ACCOUNT GROUP
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.
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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, 1988
With comparative totals for June 30, 1987
1988 1987
Amount to be provided in future years
excluding amounts allocated to Harbor,
Electric, and Water/Sewer Enterprise Funds $ 628,875 $ 181,299
GENERAL LONG TERM DEBT PAYABLE
Accrued annual leave $ 149,292 $ 133,141
Note payable 29,583 48,158
General obligation bonds payable 10,345,000 8,072,000
Less - Bonds allocated to Harbor,
Electric, and Water /Sewer Enterprise Funds (9,895,000) (8,072,000)
628,875 $ 181,299
91
CITY OF SEWARD
SCHEDULE OF BONDED INDEBTEDNESS • ALL FUNDS
June 30, '1988
ELECTRIC FUND
1957 Electric Revenue Bonds 5.50% April 15, 1957 1973-1987
Total Indebtedness
Interest Date of
Rate Date of Issue Maturity
GENERAL BONDED DEBT
1962 Water Improvement 3.375% September 1, 1962 1974-1991
1977 Water and Sewer 5155% to
6.30% June 1, 1976 1977-1996
1980 Electric Improvement 7.00% August 15, 1980 1982-2001
1984 Electric Improvement 12.50% to
9.50% October 19, 1984 1985-1994
1986 Electric Improvement 4.500/6 to
7.50% August 1, 1986 1986-2004
1987 SMIC Dock and Senior Center 5.750/6 to
8.25% December 1, 1987 1989-2008
Total General Obligation Bonds
includes $9,895,000 of bonds
outstanding allocated to Enterprise Funds)
ACCRUED ANNUAL LEAVE
NOTE PAYABLE 25.75% April 15, 1987 1990
ELECTRIC FUND
1957 Electric Revenue Bonds 5.50% April 15, 1957 1973-1987
Total Indebtedness
Additions
15,521,472 8,072,000 2,273,000 10,345,000 705,871
133,141 16,151 149,292
49,584 48,158 (18,575) 29,583 5,328
400,000 67,000 (67,000) - - -- 2,126
15,971,056 $ 8,320,299 $ 2,203,576 $ 10,523,875 $ 713,325
Outstanding Retirements) Outstanding
Debt June 30, During June 30, Interest
Issued 1987 the Year 1988 Expense
226,000 56,000 11,000) 45,000 1,581
1,200,000 735,000 60,000) 675,000 48,165
1,700,000 1,405,000 60,000) 1,345,000 96,250
5,000,000 1,175,000 100,000) 1,075,000 117,838
4,845,472 4,701,000 46,000) 4,655,000 327,559
2,550,000 2,550,000 2,550,000 114,479
15,521,472 8,072,000 2,273,000 10,345,000 705,871
133,141 16,151 149,292
49,584 48,158 (18,575) 29,583 5,328
400,000 67,000 (67,000) - - -- 2,126
15,971,056 $ 8,320,299 $ 2,203,576 $ 10,523,875 $ 713,325
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PART III
STATISTICAL SECTION
STATISTICAL TABLES
Statistical tables give report users a better historical perspective and assist in assessing current financial status ,
and trends. Statistical data is included for ten fiscal years.
96
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CITY OF SEWARD
GENERAL FUND EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
UNAUDITED}
Fiscal General Public Public Parks and
Year Govemment Safety Works Recreation
1979 653,722 580,243 249,035 34,842
1980 773,588 677,821 397,951 36,449
1981 988,845 811,165 318,674 41,173
1982 1,662,099 880,760 433,169 130,451
1983 1,518,263 1,259,195 595,628 184,971
1984 1,353,609 1,362,299 546,567 311,234
1985 1,641,257 1,594,281 586,308 256,883
1986 1,475,315 1,688,989 542,857 199,159
1987 1,414,497 1,331,061 515,959 191,996
1988 1,625,704 1,369,233 560,677 279,862
Debt
Service Total
139,954 1,657,796
25,952 1,911, 761
38,337 2,198,194
38,038 3,144,517
22,119 3,580,176
9,881 3,583,590
9,544 4,088,273
10,188 3,916,508
3,453,513
20,206 3,855,682
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CITY OF SEWARD
GENERAL FUND REVENUES BY SOURCE
LAST TEN FISCAL YEARS
UNAUDITED)
Fines and
Forfeitures
6,527
3,613
11,429
11,976
17,608
12,027
16,122
9,152
13,495
14,465
s
Licenses Charges
Fiscal and Inter- for
Year Taxes Permits Governmental Services
1979 537,910 11,384 356,222 289,180
1980 542,214 8,945 330,284 297,860
1981 574,070 17,249 617,834 480,028
1982 356,047 19,543 846,732 2,686,512
1983 346,153 65,621 1,366,788 2,558,494
1984 499,542 69,355 1,274,009 1,983,673
1985 597,983 62,979 1,160,034 1,918,817
1986 799,563 187,393 798,506 2,693,839
1987 842,119 62,029 755,182 956,580
1988 1,318,434 72,681 605,928 1,246,710
Fines and
Forfeitures
6,527
3,613
11,429
11,976
17,608
12,027
16,122
9,152
13,495
14,465
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Payment Rents
in Lieu Surplus and
of Taxes Sales Leases Miscellaneous Total
76,143 147,075 155,478 321,389 1,901,308
140,874 138,079 329,294 1,791,163
154,672 20,787 227,170 151,108 2,254,347
196,049 3,249 173,188 808,763 5,102,059
233,315 6,145 193,066 460,429 5,247,619
331,438 264,955 207,234 757,580 5,399,813
388,467 2,229 245,040 568,938 4,960,609
472,813 2,043 255,529 198,641 5,417,479
506,923 126,697 294,583 149,411 3,707,019
517,548 20,770 301,402 204,171 4,302,109
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CITY OF SEWARD
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
UNAUDITED)
Source: Kenai Peninsula Borough
100
Delinquent
Tax
76,661
46,618
46,094
95,318
7,419
4,302
4,634
3,334
1,764
6,366
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Total Percent
Fiscal Tax Current Tax of Levy
Year Levy Collections Collected
1979 486,633 459,586 94.40/6
1980 510,106 493,798 96.8%
1981 549,417 526,145 95.80/0
1982 312,199 260,729 83.5%
1983 239,757 229,177 95.6%
1984 313,141 303,695 97.0%
1985 323,749 313,392 96.8%
1986 571,294 536,059 93.80/6
1987 427,526 385,318 90.1%
1988 457,793 406,572 88.811/6
Source: Kenai Peninsula Borough
100
Delinquent
Tax
76,661
46,618
46,094
95,318
7,419
4,302
4,634
3,334
1,764
6,366
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Outstanding
Total Tax Delinquent
Collections Outstanding Taxes
Total Tax As a Percent Delinquent As a Percent
Collections of Levy Taxes of Total Levy
536,247 110.2% 27,047 5.6%
540,416 105.90/0 16,308 3.2%
572,239 104.2% 23,272 4.20/6
356,047 114.0% 51,470 16.50/0
236,587 98.79/6 16,805 7.0%
307,997 98.4% 18,640 6.0%
318,026 98.2% 54,438 16.80/6
539,393 94.49/6 52,253 9.1%
387,082 90.50/0 123,258 28.80/0
412,938 90.2% 125,560 27.4%
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CITY OF SEWARD
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
UNAUDITED)
Source: "Alaska Taxable ", State of Alaska
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Personal PronertRealProperty
Assessed Actual
Estimated
Fiscal Assessed Actual
Year Value Value
1979 26,590,950 30,164,030
1980 27,891,100 36,847,800
1981 37,540,850 48,668,600
1982 38,884,425 41,796,200
1983 37,817,000 43,917,549
1984 63,395,090 66,015,400
1985 60,596,630 64,748,500
1986 77,827,300 85,454,400
1987 86,452,400 102,797,600
1988 94,276,800 102,993,300
Source: "Alaska Taxable ", State of Alaska
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Personal Pronert
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Estimated
Assessed Actual
Value Value
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
59,765,300 74,541,800
68, 625, 921 69,953,900
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Ratio of Total
Total Assessed
Estimated to Total
Assessed Actual Estimated
Value Value Actual Value
36,753,610 $ 40,326,690 91.14%
41,008,059 49,964,800 82.07%
57,905,175 69,032,900 83.88%
63,834,475 71,361,400 89.45%
54,186,047 63,482,234 85.369/6
78,888,760 87,603,300 90.050/0
81,340,216 85,492,086 95.149/6
134,543,500 142,170,600 94.64%
146,217,700 177,339,400 82.450/6
162,902,721 172,947,200 94.190/6
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CITY OF SEWARD
PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS
PER $1,000 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
UNAUDITED)
Fiscal Seward City
ym General Fund Borough Total
1979 13.50 4.50 18.00
1980 13.50 2.50 16.00
1981 12.50 2.50 15.00
1982 7.00 1.75 8.75
1983 7.00 1.25 8.25
1984 5.00 2.50 7.50
1985 5.00 1.75 6.75
1986 5.00 1.75 6.75
1987 3.00 4.00 7.00
1988 3.00 5.75 8.75
Source: Chy of Seward
Kenai Peninsula Borough
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CITY OF SEWARD
SPECIAL ASSESSMENT COLLECTIONS
LAST TEN YEARS
UNAUDITED)
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Current Current
Ratio of
Collections Total
Fiscal Assessments Assessments to Outstanding
Years Due Collections Amount Due Assessments
1979 34,940 6,831 19.55 240,192
1980 21,603 35,793 165.69 204,399
1981 28,668 29,943 104.45 174,456
1982 17,589 29,238 166.23 145,216
1983 17,563 28,542 162.51 116,676
1984 14,828 39,998 269.70 76,679
1985 17,146 19,364 112.93 57,315
1986 16,636 13,471 80.97 382,215
1987 14,896 14,864 99.79 408,022
1988 48,883 41,918 85.75 366,104
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CITY OF SEWARD
RATIO OF NET GENERAL BONDED DEBT
ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
UNAUDITED)
Debt
Payable
From
Fiscal Value Assessed Gross Enterprise
Year Population In Thousands) Bonded Debt Revenues
1979 1,778 36,754 $ 1,896,000 520,000
1980 1,843 41,008 1,827,555 511,555
1981 1,943 57,905 3,401,204 451,204
1982 1,828 63,834 3,266,010 362,000
1983 1,828 54,186 3,052,000 325,000
1984 1,871 78,889 2,874,000 265,000
1985 2,072 81,340 7,682,000 203,000
137,00019862,293 134,544 7,395,000
1987 2,279 146,218 8,139,000 67,000
1988 2,400 162,903 10,345,000
Source: State of Alaska
Kenai Peninsula Borough
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Ratio of
Net Bonded Net
Net Debt to Bonded
Bonded Assessed Debt Per
Debt Value Capita
1,376,000 0.0374 774
1,316,000 0.0321 714
2,950,000 0.0509 1,518
2,904,010 0.0455 1,589
2,727,000 0.0503 1,492
2,609,000 0.0331 1,394
7,479,000 0.0919 3,610
7,258,000 0.0539 3,165
8,072,000 0.0552 3,542
10,345,000 0.0635 4,310
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LEGAL DEBT MARGIN
June 30, 1988
No debt limit mandated by law.
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CITY OF SEWARD
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
June 30, 1988
UNAUDITED)
Percentage Amount
Net Debt Applicable to Applicable to
Jurisdiction Outstanding City of Seward City of Seward
Kenai Peninsula Borough $ 151,314,000 5.31% $ 8,029,666
Total overlapping debt 151,310,000 8,029,666
City of Seward 10,345,000 100.000/0 10,345,000
Total direct debt 10,345,000 10,345,000
Total direct and
overlapping debt $ 161,655,000 $ 18,374,666
Based upon the ratio of City of Seward assessed value (real and personal property) to total assessed value
of the Kenai Peninsula Borough.
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CITY OF SEWARD
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES
LAST TEN FISCAL YEARS
UNAUDITED)
Ratio of
Debt Service
to Total
General
Expenditures
8.44
1.36
1.74
1.21
0.62
0.24
0.23
0.26
0.52
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Total Total
Fiscal Debt General
Year Principal Interest Service Expenditures
1979 51,000 88,954 139,954 1,657,796
1980 16,275 9,677 25,952 1,911,761
1981 11,350 26,987 38,337 2,198,194
1982 12,194 25,844 38,038 3,144,517
1983 11,377 10,742 22,119 3,580,176
1984 9,000 881 9,881 4,078,729
1985 9,000 544 9,544 4,061,313
1986 10,000 188 10,188 3,906,320
1987 3,453,513
1988 20,206 200206 3,855,682
Ratio of
Debt Service
to Total
General
Expenditures
8.44
1.36
1.74
1.21
0.62
0.24
0.23
0.26
0.52
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CITY OF SEWARD
DEMOGRAPHIC STATISTICS
LAST TEN YEARS
UNAUDITED)
Per
Fiscal Capita Median School
Year Population Income Age Enrollment
1979 1,778 10,731 N/A 457
1980 1,843 12,044 N/A 448
1981 1,943 13,558 N/A 450
1982 1,828 15,289 28.7 472
1983 1,828 N/A N/A 468
1984 1,871 NIA 28.6 471
1985 2,072 NIA 28.7 565
1986 2,293 N/A 28.7 583
1987 2,279 WA 28.7 580
1988 2,400 NIA 28.7 822"
Includes Alaska Vocational Technical School
Source: State of Alaska
U.S. Census
Kenai Peninsula Borough
Alaska Department of Labor
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Drivers
Unemployment Licenses
Rate Issued
13.5 1,147
13.6 1,165
11.4 1,186
13.4 1,417
15.9 737
14.9 945
N/A 1,022
N/A N/A
N/A N/A
N/A N/A
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CITY OF SEWARD
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
UNAUDITED)
Commercial
Construction
Residential
Constriction
Fiscal Number Number
Year of Units Value of Units
1979 46 1,721,000 4
1980 1 350,000 2
1981 3 1,272,000 4
1982 9 2,632,593 23
1983 7 2,078,000 37
1984 42 12,560,425 34
1985 36 9,849,952 38
1986 49 35,738,777 38
1987 34 448,475 44
1988 37 3,720,245 17
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Value
256,000
166,000
234,000
392,946
2,752,500
958,101
2,539,790
2,185,253
768,493
456,430
Bank
Deposits
thousands
11,828
13,024
NIA
14,292
14,835
15,263
17,875
18,778
23,438
21,118
Property
Value
40,326,690
49,964,800
69,032,900
71,361,400
64,482,234
87,603,300
85,492,086
142,170,610
177,339,400
172,947,200
CITY OF SEWARD
LOCAL UNEMPLOYMENT RATE
ALL YEARS FOR WHICH INFORMATION IS AVAILABLE
UNAUDITED)
Fiscal Annual
Year Average Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr MMaX Jun
1979 13.5 7.7 7.9 9.2 12.1 13.8 14.3 17.6 16.0 16.5 16.1 16.0 14.3
1980 13.6 11.5 10.9 12.8 16.6 15.9 18.5 17.9 17.0 12.9 11.2 9.8 8.0
1981 11.4 7.2 7.4 7.8 10.4 12.3 13.4 13.1 12.8 13.9 13.1 12.1 13.8
1982 13.4 9.8 9.8 4.6 13.8 15.6 16.5 20.4 17.8 16.8 12.1 12.5 11.1
1983 15.9 8.5 8.5 9.8 16.0 17.0 16.4 22.8 21.1 19.9 18.8 19.8 12.4
1984 14.9 9.6 8.1 10.5 13.0 16.1 15.5 20.7 22.8 21.2 17.6 15.4 9.6
1985 9.6 9.2 7.6 12.5 14.7 14.9
1986 11.1 11.2 11.4 12.7 14.7 16.1
1987
1988
Notes: Detailed information not available
Source: Alaska Department of Labor
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CITY OF SEWARD
PRINCIPAL TAXPAYERS
JUNE 30,1988
UNAUDITED)
Percent
1987 of Total
Assessed Assessed
Taxpayer Type of Business Valuation Valuation
Suneel Alaska Corporation Coal Export 9,638,576 5.92%
Seward Fisheries Seafood Processing 3,878,503 2.38%
Icicle Seafoods Seafood Processing 3,303,200 2.03%
Leier Enterprises Real Estate 3,061,215 1.88%
Gateway Ventures Real Estate 2,973,700 1.83%
General Telephone Co. of Alaska Telecommunications 1,723,143 1.060/6
Afognak Logging Construction 1,150,778 0.71%
New Seward Hotel Hotel 1,075,667 0.660/0
Conifer 402 Real Estate 1,014,067 0.620/6
Individual Real Estate 911,700 0.56%
Includes real and personal property
Source: Kenai Peninsula Borough
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CITY OF SEWARD
MISCELLANEOUS STATISTICS
June 30, 1988
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 (January, 1988)
Fire Protection
Number of Stations 1
Number of Firemen and Officers 2
Number of Volunteers 37
Fire Rating (ISO) 5
Police Protection
Number of Stations 1
Number of Officers 8
Education
Attendance Centers 3
Number of Students 822
Number of Teachers 84
Municipal Water Department
Number of Consumers 758
Average Daily Consumption 1,195,075
Building Permits Issued 54
Recreation and Culture
Number of Parks 3
Number of Libraries 1
Number of Volumes 19,970
Employees
Classified Service 119
Exempt 3
Qualified Voters 1,235
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