HomeMy WebLinkAbout08252025 City Council Work Session Audit City of Final ACFR 2024
City of Seward, Alaska
Annual Comprehensive Financial Report
Year Ended December 31, 2024
Prepared by City of Seward Finance Department
Annual Comprehensive Financial Report
of the
City of Seward, Alaska
For the Fiscal Year Ended
December 31, 2024
Sue McClure
Mayor
Kat Sorensen
City Manager
Prepared by the Finance Department
Sully Jusino
Finance Director
City of Seward, Alaska
Table of Contents
Exhibit No. Page No.
INTRODUCTORY SECTION
Letter of Transmittal I-V
GFOA Certificate of Achievement VI
List of Principal Officials VII
Organization Chart VIII
FINANCIAL SECTION
Independent Auditor’s Report 1-4
Management’s Discussion and Analysis (MD&A) 5-16
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position A-1 17-18
Statement of Activities B-1 19
Governmental Funds Financial Statements:
Balance Sheet - Governmental Funds C-1 20
Reconciliation of Governmental Funds Balance Sheet to
Statement of Net Position C-2 21
Statement of Revenues, Expenditures and Changes
in Fund Balances - Governmental Funds D-1 22
Reconciliation of Statement of Revenues, Expenditures
and Change in Fund Balances of Governmental Funds to the
Statement of Activities D-2 23
Proprietary Funds Financial Statements:
Statement of Net Position E-1 24-25
Statement of Revenues, Expenses and Changes in Net Position E-2 26
Statement of Cash Flows E-3 27-28
Notes to Financial Statements 29-67
City of Seward, Alaska
Table of Contents, Continued
Exhibit No. Page No.
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Change in Fund Balance –
Original and Final Budget and Actual:
General Fund F-1 68
Public Employees’ Retirement System:
Schedule of the City’s Proportionate Share of the Net Pension Liability G-1 69
Schedule of the City’s Proportionate Share of the Net OPEB Liability (Asset) G-2 70
Schedule of the City’s Contributions (Pension) G-3 71
Schedule of the City’s Contributions (OPEB) G-4 72
International Brotherhood of Electrical Workers (IBEW) Defined Benefit
Pension Plan – Schedule of the City’s Contributions (Pensions) G-5 73
Notes to Required Supplementary Information 74-75
Supplementary Information:
General Fund –
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual H-1 76-81
Other Governmental Funds:
Combining Balance Sheet I-1 82-83
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances I-2 84-85
Nonmajor Enterprise Funds:
Combining Statement of Net Position J-1 86
Combining Statement of Revenues, Expenses and Changes in Net Position J-2 87
Combining Statement of Cash Flows J-3 88
Internal Service Funds:
Combining Statement of Net Position K-1 89
Combining Statement of Revenues, Expenses and Changes in Net Position K-2 90
Combining Statement of Cash Flows K-3 91
City of Seward, Alaska
Table of Contents, Continued
Table No. Page No.
STATISTICAL SECTION:
Net Position by Component 1 92
Changes in Net Position 2 93-94
Fund Balances of Governmental Funds 3 95
Changes in Fund Balances of Governmental Funds 4 96
General Fund Revenues by Source 5 97
General Fund Tax Revenues by Source 6 98
Property Tax Rates 7 99
Property Tax Levies and Collections 8 100
Assessed and Estimated Actual Value of Taxable Property 9 101
Principal Property Taxpayers Compared with Nine Years Ago 10 102
Principal Taxable Sales by Line of Business 11 103
Ratios of Outstanding Debt by Type 12 104
Ratio of General Obligation Bonded Debt to Assessed Value and
General Obligation Bonded Debt per Capita 13 105
Computation of Direct and Overlapping Bonded Debt 14 106
Legal Debt Margin 15 107
Revenue Bond Coverage – Electric Enterprise Fund 16 108
Revenue Bond Coverage – Harbor Enterprise Fund 17 109
Demographic and Economic Statistics 18 110
Full-Time Equivalent Employees by Fund 19 111
Operating Indicators by Function 20 112
Capital Asset Statistics by Function 21 113
Property Value, Construction, and Bank Deposits 22 114
Miscellaneous Statistics 23 115
COMPLIANCE SECTION:
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 116-117
Schedule of Findings and Responses 118
Summary Schedule of Prior Audit Findings 119
I
July 21, 2025
Honorable Members of the Seward City Council
Citizens of the City of Seward:
The City of Seward (City) is required by Alaska Statutes (AS 29.35.120 Annual Audit) and Seward City Code to
publish a complete set of financial statements presented in conformity with generally accepted accounting
principles (GAAP). Pursuant to these requirements, the Annual Comprehensive Financial Report of the City
for year ended December 31, 2024 is hereby submitted.
Management is responsible for ensuring the accuracy, completeness, and fairness of the presentation of this
information, including all disclosures. To provide a reasonable basis for making these representations,
management has established a comprehensive framework of internal controls designed to protect the
government’s assets from loss, theft, or misuse and to provide sufficient reliable information upon which to
prepare the City’s financial statements in accordance with GAAP. Because the cost of internal control should
not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that
the financial statements are free of any material misstatements. Management asserts that, to the best of our
knowledge, this financial report is complete and reliable in all material respects.
Altman, Rogers & Co., a firm of independent certified public accountants, has issued an unmodified (clean)
opinion on the City’s financial statements for the year ended December 31, 2024. The goal of the
independent audit is to provide reasonable assurance that the financial statements of the City are free of
material misstatement. The independent audit involved examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements; assessing the accounting principles used and the
significant estimates made by management; and evaluating the overall presentation of the financial
statements. Based on the independent audit, it was concluded that there was a reasonable basis upon
which to render an unmodified opinion that the City’s financial statements for the fiscal year ended
December 31, 2024, are fairly presented in conformity with GAAP. The independent auditor’s report is
presented in the financial section of this report.
Management’s discussion and analysis (MD&A) immediately follows the independent auditors report and
provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with the MD&A.
As a recipient of federal grant awards, the City is required to undergo an audit in accordance with the
provisions of the Federal Single Audit Act Requirements of 1996, the related OMB 2 CFR Part 200 (formerly
OMB Circular A-133). A schedule of expenditures of federal awards, the independent auditor’s report on
internal controls and compliance with applicable laws and regulations, and a schedule of findings and
questioned costs (if any) are prepared under a separate cover.
LETTER OF TRANSMITTAL
City of Seward
Address: 410 Adams Street, P.O. Box 167, Seward, Alaska 99664
Phone: 907.224.4050; Fax: 907.224.4038
II
PROFILE OF THE GOVERNMENT
The City was incorporated on June 1, 1912 and became a first-class City under Alaska Statute's (AS 29.04.010
Home rule) upon adoption of the City Charter by a referendum vote on January 5, 1960. The community is
located on the eastern side of the Kenai Peninsula in Southcentral Alaska, 125 highway miles south of
Anchorage. Year-round access is available by road, rail, water and two small-aircraft runways. The City has an
area of 22 square miles and a population of 2,717 as of the 2020 census.
The form of government established by the Charter is the Council-Manager plan. The Council exercises
legislative power and determines all matters of policy for the City. The Council is composed of a Mayor and
six council members who are elected at-large on a non-partisan basis. Council members and the Mayor are
elected and serve three-year terms. City Council appropriates three positions as follows: City Manager, City
Clerk, and the City Attorney. The City Manager is responsible for managing the daily operations of the City.
The City Clerk’s primary responsibilities involve the safekeeping of public records and the administration of
City elections. The City Manager appoints all other officers and employees of the City.
The City is empowered to levy a property tax on both real and personal property located within its
boundaries. The property tax is an ad valorem tax. Funding for the General Fund, by order of significance, is
provided by sales tax, payments in lieu of tax and administrative charges assessed to enterprise funds,
intergovernmental revenues, property tax, recreation and camping fees, hotel/motel tax, and land rent and
leases. The City provides the following services to its citizens: police, fire, public works, motor vehicle testing
and licensing, jail, animal control, building inspection, community development, library and museum, parks
and recreation, electric, water, wastewater, port and harbor, library, healthcare (primary care clinic, hospital,
emergency room, long-term care facility), road maintenance, parking, and general administrative services.
BUDGETARY CONTROL
The City’s budget serves as the foundation for financial planning and control. The City Council approves a
Biennial (two-year) budget for the General Fund, eight enterprise funds, and one internal service fund,
Motor Pool. Budgets are adopted by fund, function, and object code level. All departments submit budget
requests to the City Manager on or before September 1 every odd-numbered year. The City Manager
utilizes these requests to formulate a proposed budget and submits the proposed budget to the City Council
at a regular meeting in October. The Council holds public hearings on the proposed budget and generally
adopts the two-year budget in November. Adjustments to the budget are made throughout the year, as
authorized by the City Council. In the second year of the biennial budget, an interim review is conducted,
and modifications may be recommended to the City Council. The City Manager is authorized to make
transfers between departments and line items within a Fund for amounts up to $30,000. Council action is
required for transfers between funds, for all single-item purchases exceeding $30,000 (and all purchases of
new motor vehicles regardless of cost) and for all new appropriations. Budget-to-actual comparisons are
provided in this report for the General Fund, which is the only governmental fund that has a legally adopted
budget.
III
LOCAL ECONOMY
The natural beauty of Seward, its year-round deep-water port, access by road system and rail, and its
relatively mild climate combine to make Seward attractive to marine and tourism-related businesses and has
remained a destination of choice for tens of thousands of visitors. Seward's taxes are low and stable.
Seward has a diversified economy with a thriving tourism industry that peaks from May through August
annually. Strong tourism helps drive the local job market and contributes as a healthy revenue source for the
City. Strong tourism, commercial and recreational fishing, boat tours, and recreational opportunities
collectively contribute as a healthy revenue source for the City.
Seward has a statewide reputation as a maritime powerhouse due to quality port and harbor infrastructure
and healthy growth in marine-related businesses. The City’s has spent over $25 million in improvements to
the Seward Marine Industrial Center (SMIC) expansion in recent years which has resulted in enclosing the
basin by constructing a new breakwater, a new fishing pier, lineal moorage, dock upgrades, fencing, marine
washdown pad, 10-ton crane, expansion of the 330-ton lift dock and pit, upgrades to electrical
infrastructure, conversion of high-mast lights to LED, and other improvements. These investments are
encouraging growth in marine transportation, ship repair, commercial fishing, land development and related
business activity, and are attracting commercial fishing interests, transportation companies, marine
scientists, the US Coast Guard and other large marine vessel operators with interest in expanded commercial
facilities.
Seward’s downtown corridor continues to experience strong revitalization and growth. The City continues to
see activity and growth increase year over year with continued investment in economic development the
City is planning for continued increases in activity into the future.
SHORT-TERM FINANCIAL PICTURE
In 2024, Seward’s sales tax revenues came in at $8 million, or around 3% higher than the prior year’s $7.8
million. Despite large fluctuations due to the pandemic, over the past ten years, on average, sales tax
revenues have increased steadily and represent 73% of the City’s overall tax revenues, and 48% of the
overall General Fund revenues. The bulk of Seward’s sales tax (around 2/3) is generated during the summer
months when the City experiences a large increase in tourism. Given the consistent growth in visitors to
Seward it is likely Seward can continue to experience healthy sales tax growth.
The City’s top ten property taxpayers have become more diverse over the past few years. The top-ten
taxpayers represent various industries including tourism, seafood processing, grocery, hotel/motel,
communications, petroleum products, and marine businesses, and account for approximately 19% of all
taxable property in the community. The bulk of these entities are visitor-related and drive the City’s tourism
industry. And since sales tax, bed tax and camping fees are largely tourism-related these types of taxpayers
contribute approximately 50% of the General Fund revenue.
IV
FACTORS AFFECTING FINANCIAL CONDITION
LONG-TERM FINANCIAL PLANNING
An improved focus on long-term financial planning has resulted in tangible financial improvements in the
short-term. General Fund reserves have risen to the top end of the policy band of between three to six
months’ expenditures and transfers-out, with Reserve levels remaining around 6 months of expenditures and
transfers-out; the Capital Acquisition Fund receives periodic contributions toward general government
infrastructure needs; and State revenue sharing funds are used for one-time, non-recurring capital needs.
FINANCIAL CONDITION
The City’s fund balance continues to remain financially healthy. The City has worked hard to bring its General
Fund unassigned fund balance within the policy band of between three to six months’ reserves. Unassigned
fund balance decreased in 2024 by $1.1 million to $9.8 million representing 7.2 months’ reserves, down from
7.6 months at the end of 2023 (this calculation excludes transfers out). This decrease was planned and
resulted from targeted capital transfers for long-term projects. Maintaining fund balance levels within the
policy band remains a priority since the City frequently relies on reserves to address unanticipated
emergencies and unexpected expenses city-wide.
INFRASTRUCTURE CONDITION
The City continues to refine the assessment of capital infrastructure condition and address the most critical
and high-risk repair and replacement projects as funding allows. Major improvements in infrastructure
condition have resulted from enterprise fund incremental rate increases over the past ten years and
aggressive pursuit of grants. Recent infrastructure improvements and corresponding demand for land leases
at Seward Marine Industrial Center, have significantly improved the prospects for eliminating annual deficits.
The City has made significant improvements to enterprise fund capital assets based largely on categorizing
and prioritizing capital needs as “critical”, “high risk” or “moderate risk” and targeting resources to the most
critical needs. Nearly $100 million in capital grants have been deployed over the past ten years, allowing
external funds to pay the lion’s share of capital improvements, including: $27 million SMIC expansion; $10
million electrical upgrades including a new warehouse, automated controls and backup generators; $2
million Snow River flood mitigation; $5.5 million new water tank construction and old tank refurbishments;
new harbor floats, docks, restrooms, fish cleaning stations, sewer pump-out station, launch ramps and
improvements; Wastewater utility dredging of Lowell Point and SMIC sewage lagoons. These improvements
came at little cost to the local taxpayers but will have lasting benefits to residents of Seward for decades to
come.
MAJOR PROJECTS
In 2024, the City concluded some capital projects and continued some large ongoing projects. Electric
infrastructure projects continued as the biggest capital expense in the City funded by a prior year revenue
bond issuance. Additionally Harbor float improvements and planning for a new public works facility were
ongoing. The new animal shelter project was completed and fully opened.
Other major capital projects in the works or in the near future, include: 1) ongoing sidewalk replacement and
ADA ramp projects; 2) continuing upgrades to the Electric system funded by a $10 million revenue bond
issued in 2022 as well as Electric fund reserves; 3) construction of a new public works facility; 4) Harbor Z
float construction; 5) and Shore Power substation largely to be funded by grant dollars.
Future capital initiatives which require funding and attention include: a new public safety facility for fire and
police services, continued electric system work, water and sewer infrastructure expansion, completion of the
heat loop project, replacement of utility piping, continued assistance with developer projects; and a number
of other major capital initiatives.
V
FINANCIAL AND BUDGET REPORTING AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City of Seward for its annual comprehensive
financial report (ACFR) for the year ended December 31, 2023. This was the third consecutive award
received after a couple of year break from applying due to pandemic related staffing shortfalls. A Certificate
of Achievement is valid for a period of one year only. We believe that our current annual comprehensive
financial report continues to meet the Certificate of Achievement Program’s requirements and we are
submitting it to the GFOA to determine its eligibility for another certificate.
ACKNOWLEDGMENTS
The presentation of this report would not have been possible without the skill, effort, and dedication of the
entire staff in the Finance Department. Additional thanks are extended to the other City departments for
their assistance in providing necessary information and data to complete the report. Credit is also given to
the Mayor and Council members for their interest and support of our efforts in conducting the financial
operations of the City in a responsible and progressive manner.
Respectfully submitted,
________________________________ _______________________________
Kat Sorensen Sully Jusino
City Manager Finance Director
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Seward
Alaska
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2023
Executive Director/CEO
VII
City of Seward
LIST OF PRINCIPAL OFFICIALS
COUNCIL MEMBERS Term Expires
Sue McClure Mayor 2025
John Osenga Vice Mayor 2027
Bob Barnwell Council Member 2026
Casie Warner Council Member 2027
Julie Crites Council Member 2026
Randy Wells Council Member 2025
Kevin Finch Council Member 2025
ADMINISTRATION
CITY CLERK
CITY ATTORNEY
The City of Seward is a home-rule city with a council-manager form of government. Legislative powers of the City of
Seward are vested in a council consisting of a mayor and six council members. The mayor and each council member are
elected from the city at large. The term of office is three years. The appointed officers of the City include the city manager,
city clerk and the city attorney. The city council generally meets on the second and fourth Mondays of each month in the
City Council Chambers located in the City Hall Building at 410 Adams Street in Seward, Alaska.
Kat Sorensen City Manager
Jason Bickling Deputy City Manager
Sully Jusino Finance Director
Alan Nickell Chief of Police
Clinton Crites Fire Chief
Brian Hickey Manager of Electric Utility
Doug Schoessler Public Works Director
Tony Sieminski Harbormaster
Danny Meuninck Community Development Director
Melanie Hauze Parks & Recreation Director
Sue Drover Library Director
Kris Peck City Clerk
Sam Severin City Attorney,
Munson, Cacciola & Severin, LLP
1
3000 C Street N. Suite 201 Anchorage, Alaska 99503 Phone 907-274-2992 Fax 907-274-2993
Offices in Juneau and Soldotna A Professional Corporation
Independent Auditor’s Report
Honorable Mayor and City Council
City of Seward, Alaska
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of Seward, Alaska (the City), as of and for the year ended December 31, 2024, and the
related notes to the financial statements, which collectively comprise the City’s basic financial
statements as listed in the table of contents.
In our opinion, based on our audit and the report of the other auditors, the financial statements
referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the City, as of December 31, 2024, and the respective changes in
financial position, and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
We did not audit the financial statements of the Providence Seward Medical Center (PSMC) which
represent 43%, 30%, and 98% respectively, of the assets and deferred outflows of resources, net
position, and revenues of the Healthcare Facilities Enterprise Fund, and 10%, 5%, and 52%
respectively, of the assets and deferred outflows of resources, net position and revenues of the
business-type activities as of December 31, 2024. Those statements were audited by other
auditors whose report has been furnished to us, and our opinion, insofar as it relates to the
amounts included for the financial statements of the PSMC, is based solely on the report of the
other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report. We are required to be independent of the City and to
meet our other ethical responsibilities, in accordance with the relevant ethical requirements
relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for
the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error.
Honorable Mayor and City Council
City of Seward, Alaska
2
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability
to continue as a going concern for twelve months beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with generally
accepted auditing standards and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of
the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City’s ability to continue as a going concern
for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
Honorable Mayor and City Council
City of Seward, Alaska
3
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis on pages 5-16, budgetary comparison schedule on page 68,
Schedules of Net Pension and OPEB Liabilities (Assets) and Contributions for the Public Employees’
Retirement System and International Brotherhood of Electrical Workers Plan, and notes to the
required supplementary information on pages 69-75, be presented to supplement the basic financial
statements. Such information is the responsibility of management and, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements in
an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Seward, Alaska’s basic financial statements. The accompanying
combining and individual fund financial statements and schedules, as listed in the table of contents,
are presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of
the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the combining and individual fund financial statements and schedules are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory and statistical sections but does not include the basic
financial statements and our auditor’s report thereon. Our opinions on the basic financial statements
do not cover the other information, and we do not express an opinion or any form of assurance
thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially
misstated. If, based on the work performed, we conclude that an uncorrected material misstatement
of the other information exists, we are required to describe it in our report.
Honorable Mayor and City Council
City of Seward, Alaska
4
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated July 21,
2025, on our consideration of the City’s internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the effectiveness of the City’s internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering City’s internal control over financial reporting and compliance.
Anchorage, Alaska
July 21, 2025
Management’s Discussion and Analysis
5
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2024 City of Seward
This section of the Annual Comprehensive Financial Report provides a narrative overview and analysis of
the financial activities of the City of Seward for the fiscal year ended December 31, 2024. It is designed to
focus on significant financial matters, provide an overview of the City’s financial activities, highlight changes
in the City’s financial position, identify material changes from the original budget and explain any important
subjects. In addition to this management’s discussion and analysis (MD&A), readers are encouraged to read
the Letter of Transmittal found on pages I-V of this report, which provides additional summary information.
FINANCIAL HIGHLIGHTS
• At December 31, 2024, the City of Seward’s assets and deferred outflows exceeded liabilities and
deferred inflows by $220 million (net position). Of this amount, $156.8 million represents net
investment in capital assets, $2.7 million is restricted for commercial passenger vessel tax, and the
remaining $60.8 million represents unrestricted net position. Unrestricted net position does not
necessarily reflect a surplus of resources, since a portion of net position can be designated for
capital grants, capital replacement, or other purposes determined by the City Council.
• Excluding business-type activities, the assets of the primary government exceeded liabilities by
$61.3 million. Of this amount, $15.4 million in unrestricted net position is legally unreserved and
available to meet the government’s ongoing financial obligations, although Council has earmarked
a portion of these funds for specific purposes.
• The City’s total net position increased by $2.3 million. Governmental activities increased by $.7
million and business-type activities increased by $1.6 million.
• The City’s governmental funds reported combined ending fund balances of $18.3 million
representing an increase of $1.5 million compared to the prior year. While $14.5 million of the fund
balance is legally available for spending, only $9.8 million has not already been earmarked for
specific purposes (unassigned fund balance). This reflects a decrease in available unassigned fund
balance of $.3 million as compared to 2023.
• The total debt of governmental activities decreased by $235 thousand excluding the effect of the
net pension liability. The total debt of business-type activities decreased by $2.15 million. The net
pension liability of governmental activities decreased by $350 thousand and decreased in business-
type activities in the amount of $589 thousand for combined total net pension liability debt
decrease of $939 thousand.
OVERVIEW OF FINANCIAL STATEMENTS
The MD&A is intended to serve as an introduction to the City’s basic financial statements, which include 1)
government-wide financial statements; 2) fund financial statements; and 3) notes to the financial
statements. This report also contains other required supplementary information. The basic financial
statements include two types of statements reflecting different views of the City’s financial activities; the
government-wide financial statements, and the fund financial statements.
Government-wide Financial Statements
The government-wide financial statements are intended to provide a comprehensive look at all financial
activities of the City. These statements summarize the City’s overall financial condition and contain both
short-term and long-term information about the City’s entity-wide finances, similar to a private-sector
business. These statements combine and consolidate short-term, spendable resources with capital assets
and long-term obligations.
6
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2024 City of Seward
The Statement of Net Position examines, on an entity-wide basis, the difference between the City’s assets
and deferred outflows of resources, and its liabilities and deferred inflows of resources, resulting in net
position. Over time, increases or decreases in net position may indicate whether the City’s financial position
is improving or deteriorating. The purpose of this statement is to present the overall financial position of
the City. There are other non-financial factors, such as the condition of public facilities, the timely
investment in roads and infrastructure, and the level of maintenance funding that should be considered in
evaluating the City’s overall financial condition.
The Statement of Activities demonstrates how the City’s net position changed as a result of the current
year’s activities. This statement reflects expenses for various programs and functions of the City, as offset
by program revenue. Program revenues include fees, fines, and charges for services, as well as operating
grants, capital grants, and contributions. Revenues and expenses are reported when incurred, regardless
of the timing of the related cash flows. Therefore, revenues and expenses may be reported in this
statement for items that will result in cash flows in future periods.
Both of the government-wide financial statements distinguish functions of the City of Seward that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City of Seward include general
government, public safety, public works, parks and recreation, library/museum, the Seward Community
Health Center (clinic) and the Alaska Sealife Center. The business-type activities of the City include the
hospital and long-term care facilities (healthcare facilities), harbor, marine industrial center, electric, water,
wastewater, and parking. The government-wide financial statements can be found on pages 17-19 of this
report.
Fund Financial Statements
Fund financial statements focus on specific areas of City operations and provide more detail than the
government-wide statements. A fund is a grouping of related accounts used to maintain control over
resources that have been segregated for specific activities or purposes. The City of Seward, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with legal
requirements. The funds of the City of Seward are divided into three categories: governmental funds,
proprietary funds, and fiduciary funds, each of which is further described below.
Governmental Funds
Governmental Funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, which provide a broad overview and include short-term and long-term information, the
governmental funds’ financial statements focus on near-term inflows and outflows of resources, and on
the balance of spendable resources available at the end of the year. Such information is useful in evaluating
a government’s near-term financing requirements.
Since the focus of governmental funds is narrower than that of the government-wide financial statements,
it is useful to compare the information presented for governmental funds, with similar information
presented for governmental activities in the government-wide financial statements. Such a comparison
enables the reader to better understand the long-term impact of a government’s near-term financing
decisions. The Governmental Funds Balance Sheet and the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate the comparison between
governmental funds and governmental activities.
7
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2024 City of Seward
The City of Seward maintains fifteen individual governmental funds. The General Fund is the only Major
Governmental Fund presented as a distinct column on the Governmental Funds Balance Sheet and in the
Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances, with the other
fourteen governmental funds aggregated and shown in the Nonmajor Funds column on these same two
statements. Individual fund information for the nonmajor governmental funds is provided in the form of
combining statements elsewhere in this report (see pages 82-85).
The City of Seward adopts a 2-year budget for the General Fund. A budgetary comparison statement (page
68) demonstrates compliance with the budget, and a list of budgetary highlights is found later in this
document. The basic governmental fund financial statements are found on pages 20-23 of this report.
Proprietary Funds
The City of Seward maintains two types of proprietary funds; enterprise funds and internal service funds.
Enterprise funds are used to report the same functions identified as business-type activities in the
government-wide financial statements. The City uses enterprise funds to account for healthcare facilities
(Providence Seward Medical & Care Center), harbor, Seward Marine Industrial Center, electric utility, water
utility, wastewater utility, and parking operations. Information for each of these funds is presented in the
individual fund statements found on pages 24-28 and 86-88 of this report.
Internal service funds accumulate and allocate costs internally among the various functions of the City. The
City utilizes two internal service funds to account for its motor pool equipment replacement program and
compensated annual leave resources. The motor pool benefits both the governmental and business-type
functions. As a result, its activities have been allocated among both the governmental and business-type
activities in the government-wide financial statements. Accrued leave that is earned in the governmental
funds is accounted for in the Compensated Annual Leave Internal Service Fund. Individual fund data for the
internal service funds can be found on pages 89-91 of this report.
Notes to the Basic Financial Statements
The notes provide additional information essential to a complete understanding of the data in the
government-wide and fund financial statements. The notes can be found on pages 29-67 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report presents certain required
supplementary information on the City’s retirement plans on pages 68-75 of this report.
8
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2024 City of Seward
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
At December 31, 2024, the City’s assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $220 million. A significant portion of the City’s net position (71%) reflects
its investment in capital assets, less any outstanding debt used to acquire those assets. Capital assets are
not liquid and are not available for future spending. Since the investment in capital assets is reported net
of related debt, it should be noted that the resources needed to repay this debt must be provided from
other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The following
table provides a summary of the City’s net position:
Table 1
Statement of Net Position
As of December 31, 2023 and 2024
Governmental Business-Type
Activities Activities Total
2023 2024 2023 2024 2023 2024
Current and other assets $ 23,837,127 25,427,701 67,731,726 72,676,053 91,568,853 98,103,754
Capital assets 51,442,324 50,464,801 138,308,937 135,579,602 189,751,261 186,044,403
Total assets 75,279,451 75,892,502 206,040,663 208,255,655 281,320,114 284,148,157
Deferred outflows 792,858 678,198 1,580,986 1,409,896 2,373,844 2,088,094
Total assets &
deferred outflows 76,072,309 76,570,700 207,621,649 209,665,551 283,693,958 286,236,251
Long-term liabilities
outstanding 12,636,046 11,982,544 32,561,141 30,411,172 45,197,187 42,393,716
Other liabilities 2,095,232 2,718,324 11,181,245 14,173,886 13,276,477 16,892,210
Total liabilities 14,731,278 14,700,868 43,742,386 44,585,058 58,473,664 59,285,926
Deferred inflows 776,853 570,803 6,402,822 5,991,050 7,179,675 6,561,853
Total liabilities &
deferred inflows 15,508,131 15,271,671 50,145,208 50,576,108 65,653,339 65,847,779
Net position:
Net investment in capital
assets 46,569,721 45,877,783 111,665,918 110,911,662 158,235,639 156,789,445
Restricted - - 2,589,733 2,768,670 2,589,733 2,768,670
Unrestricted 13,994,457 15,421,246 43,220,790 45,409,111 57,215,247 60,830,357
Total net position $ 60,564,178 61,299,029 157,476,441 159,089,443 218,040,619 220,388,472
9
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2024 City of Seward
Statement of Activities
The City’s total revenues and expenses for governmental and business-type activities are reflected in the
following table.
Table 2
Change in Net Position
For the Years Ended December 31, 2023 and 2024
Governmental Business-Type
Activities Activities Total
2023 2024 2023 2024 2023 2024
Revenues: Program revenues: Charges for services $ 2,694,710 2,295,191 51,669,736 54,503,151 54,364,446 56,798,342
Operating grants / contributions 270,756 483,986 24,900 136,516 295,656 620,502
Capital grants / contributions 954,129 406,699 1,075,302 527,983 2,029,431 934,682
General revenues: Sales taxes 7,856,783 8,077,227 - - 7,856,783 8,077,227
Property taxes 1,738,875 1,944,128 - - 1,738,875 1,944,128
Payments in lieu of tax 156,404 159,913 - - 156,404 159,913
Other 2,325,818 2,709,406 1,254,418 1,257,702 3,580,236 3,967,108
Total revenues 15,997,475 16,076,550 54,024,356 56,425,352 70,021,831 72,501,902 Expenses: General government 3,065,910 3,644,599 - - 3,065,910 3,644,599
Public safety 5,133,558 5,353,134 - - 5,133,558 5,353,134
Public works 2,446,349 2,830,952 - - 2,446,349 2,830,952
Parks and recreation 1,733,775 2,212,119 - - 1,733,775 2,212,119
Library 923,686 1,065,248 - - 923,686 1,065,248
Clinic 157,173 10,917 - - 157,173 10,917
Unallocated interest 133,562 123,980 - - 133,562 123,980
Alaska Sealife Center 1,306,821 1,304,473 - - 1,306,821 1,304,473
Electric - - 13,167,421 14,616,068 13,167,421 14,616,068
Water - - 1,545,468 1,497,530 1,545,468 1,497,530
Wastewater - - 1,358,310 1,563,304 1,358,310 1,563,304
Harbor - - 4,408,596 4,746,171 4,408,596 4,746,171
SMIC - - 2,364,526 2,401,361 2,364,526 2,401,361
Healthcare facilities - - 27,917,753 28,585,970 27,917,753 28,585,970
Parking - - 153,628 198,223 153,628 198,223
Total expenses 14,900,834 16,545,422 50,915,702 53,608,627 65,816,536 70,154,049 Increase (decrease) in net assets before transfers 1,096,641 (468,872) 3,108,654 2,816,725 4,205,295 2,347,853
Transfers 1,110,348 1,203,723 (1,110,348) (1,203,723) - -
Change in net position 2,206,989 734,851 1,998,306 1,613,002 4,205,295 2,347,853
Beginning net position
58,357,189
60,564,178
155,478,135
157,476,441
213,835,324
218,040,619
Ending net position $ 60,564,178 61,299,029 157,476,441 159,089,443 218,040,619 220,388,472
10
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2024 City of Seward
Governmental Activities
The City of Seward’s net position in Governmental activities increased by $700 thousand. The following items
are of particular note:
Overall revenues for governmental activities were up slightly by around $79 thousand or less than 1%
compared with the prior year, due to a decrease in grant activity during the year.
Overall expenses were higher by around $1.6 million or 11%. Expenditures were higher due to
continued inflation pressure, as well as planned salary increases and planned spending constraint
during 2023.
Sales tax revenue increased by $220 thousand or 3% due to continued strong growth over the past
several years.
The City does not generate sufficient tax revenues to cover depreciation on general government
assets. To replace capital assets in the future, the City will need to rely on external financing sources
such as grants or incurring debt to finance construction.
The following graph reflects the revenues and expenses associated with each of the general government’s
primary programs:
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Gen'l Govt Public
Safety
Public
Works
Parks & Rec Library Clinic Sealife
Center
Interest
General Government Programs - Revenues vs. Expenses
Revenues Expenses
11
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2024 City of Seward
Business-type Activities
Business-type activities increased the net position of the City by $1.6 million. As is the case with governmental
activities, a substantial portion (70%) of the $159 million in net position is invested in capital assets. The
increase in net position is comprised of the following:
Net position decreased in two major enterprise funds: Harbor Fund by $.63 million and the Seward Marine
Industrial Center Fund by $1.3 million. Net position increased in two major enterprise funds. The Electric
Enterprise Fund increased by $.4 million and the Healthcare Facilities Enterprise Fund by $3 million. Overall
net position in Nonmajor Enterprise Funds increased by $.08 million.
The Electric Enterprise Fund experienced earnings from operations of $2.7 million, an increase of $1.6
million from the prior year. Operating revenues were $3 million higher than the prior year but
operating costs were also higher by around $1.4 million. The rates were increased during the year
resulting in the large increase in operating revenue. The nonoperating performance was impacted by
a slight decrease in investment income.
The net decrease in Seward Marine Industrial Center (SMIC) net position of $1.3 million is a result of
a net operating loss of $1.3 million which was driven by a continuing large depreciation expense due
to the $26 million expansion project which was completed several years ago. Operating revenues
increased by around $200 thousand and operating expenses remained essentially flat resulting in a
slightly improved operating loss in 2024.
The net increase in Healthcare Facilities Enterprise Fund net position of $3 million is mainly result of
positive operating income of $1 million and net operating transfer-in in the amount of $2 million. Due
to those factors, Healthcare Facilities Enterprise Funds presents positive net position at the end of
2024 in the amount of $25.2 million compared to $22.2 million in 2023.
The net decrease in Harbor Enterprise Fund net position of $0.6 million is due to both operating
revenue and operating expenses experiencing increases of around $0.4 million. The loss was around
$100 thousand larger than the prior year.
Other nonmajor enterprise funds experienced the following: 1) increase in Parking Enterprise Fund
net position of $0.3 million; 2) a decrease in Wastewater Enterprise Fund net position of $0.2 million;
and 3) a decrease in Water Enterprise Fund net position of $23 thousand.
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
Governmental Funds
The City of Seward’s governmental funds focus on near-term inflows, outflows, and balances of spendable
resources; long-term capital assets and long-term debt are not displayed on the governmental funds’ individual
fund financial statements. This focus on near-term inflows and outflows assesses whether the City is
generating sufficient revenues in the current year to pay current-year obligations. However, it does not
indicate whether there are sufficient funds available to cover long-term operations. The level of unassigned
fund balance is an important indicator of net resources available for spending at the end of the year.
12
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2024 City of Seward
At the end of the year, the City of Seward’s governmental funds reported combined ending fund balances of
$18.3 million. Of this amount: $1.1 million is nonspendable (prepaid items); none is currently restricted; $2.7
has been committed by the City Council for working capital, insurance reserves and the hospital line of credit;
$4.8 million has been assigned by the administration (primarily for capital projects); and $9.8 million is
unassigned, and legally available for spending. These classifications of fund balance promulgated in GASB
Statement No. 54, reflect efforts to create a hierarchy of fund balance to enable the reader of the financial
statements to understand the extent to which fund balance reserves are available for spending. The hierarchy
lists, in order, the least spendable to the most spendable fund balance; first are resources which are not
available for spending (nonspendable), then resources which are restricted by legislation or external agencies
(restricted), next resources which the City Council has committed to spend for a specific purpose by way of
enabling legislation, and then resources which have been assigned for a specific use but don’t meet the
definition of restricted or committed, and finally, the unassigned fund balance which remains available for
spending. Fund balances in the governmental funds increased by $1.5 million.
The overall net increase in fund balance is due to the following:
General Fund
General Fund revenues were $500 thousand higher than expenditures and around $100 thousand higher than
the previous year. General Fund revenues came higher than in 2023, mainly due to the continued increase in
sales tax revenues and another positive year of investment returns, but this was offset by a decrease in
intergovernmental funding. Sales tax revenues were higher to due increased tourism activity during the year.
The General Fund had a net deficit transfer out of $1.5 million mostly due to funding reimbursements related
to the animal shelter construction.
The General Fund’s fund balance must be able to meet unforeseen needs and emergencies as well as future
spending needs. The City’s fund balance policy is to maintain unassigned fund balance equal to between three
to six-months’ expenditures and routine transfers-out to other funds. The General Fund unassigned fund
balance at the end of 2024 is $9.8 million, which equal 7.2 months’ reserves, approximately 5.6 months’
reserves after transfers-out, which is down from 7.6 months at the end of 2023. In the City’s case, an adequate
level of fund balance is between $4.1 million and $8.1 million, which results in the General Fund currently
being slightly above the high end of the range of the desired level of unassigned fund balance.
Special Revenue Funds
Special revenue funds experienced a decrease in fund balance of $68 thousand in 2024, there was limited
activity in the special revenue funds during the year.
Capital Project Funds
All capital project funds combined experienced a net increase in fund balance of $2.5 million in 2024. This was
nearly all due to planned funding of projects, primarily from the General Fund. Including funding of future
capital projects, street and sidewalk improvements and the completion of the animal shelter. All but one
capital project funds maintained a zero or positive fund balance in 2024, as follows: Capital Acquisition Fund
$2.6 million; Culvert Project ($.03 million); Street and Sidewalks Fund $0.8 million; Energy Efficiency Fund $0.1
million; Developer Reimbursement $1.3 million; and Jesse Lee Home $.05 million.
13
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2024 City of Seward
Proprietary Funds
The City of Seward maintains two types of proprietary funds: enterprise funds and internal service funds. The
City’s seven enterprise funds (healthcare facilities, harbor, electric, water, wastewater, parking, and SMIC)
report the same functions presented as business-type activities in the government-wide financial statements,
but individual fund statements are presented in more detail. Enterprise funds reported total net position of
$153 million with $107.3 million invested in capital assets net of related debt, leaving unrestricted net position
of approximately $43 million and restricted net position of $2.7 million. Of the unrestricted net position, $8.8
million is restricted cash (bond reserve funds, bond proceeds, etc.) not available for appropriation, and current
liabilities total $16.4 million. The most material current liability is $6.1 million due in the Healthcare Enterprise
Fund to Providence Health and Services. More specific factors influencing net position of the enterprise funds
are addressed above in the discussion of the City’s business-type activities.
The City maintains two internal service funds; the motor pool and compensated annual leave funds. The Motor
Pool Internal Service Fund accumulates cash for replacement of City vehicles and heavy equipment.
Departments contribute to the motor pool to purchase vehicles and pay into the motor pool to forward-fund
vehicle replacement. This funding mechanism spreads the vehicle costs over the life of the vehicle in each
program’s annual budget, rather than incur one-time expenses in the year of vehicle/equipment purchases.
The cash balance in the motor pool is $1.8 million, reflecting a decrease of $.6 million due to a planned
decrease in interfund payments.
However, the Motor Pool maintains outstanding loans receivable from the Healthcare Facilities Enterprise
Fund of $0.1 million related to the payoff of prior hospital PERS liabilities and an outstanding loan receivable
from the General Fund of $0.9 million related to the construction the new animal shelter facility. The
Compensated Annual Leave Fund accumulates cash reserves to pay annual leave cash-outs for governmental
funds. The balance of cash in this fund at the end of 2024 is $0.5 million.
General Fund Budgetary Highlights
On a budgetary basis, General Fund revenues came in $1,702,364 higher than the final budget primarily due
to a continued strong sales tax revenue stream and a strong investment income environment.
Intergovernmental revenues were below budget by $316,452; investment income was higher by $84,253,
charges for services were lower by $320,347, licenses and permits were slightly higher by $9,817, other
revenues were over budget by $243,452, and fines and bails exceeded budget by $23,456.
General Fund Actual Highlights
General Fund revenues exceeded expenditures by $527,948, but after transfers between funds were
accounted for, there was a net decrease in fund balance of $1,000,763. The net decrease was planned to fund
capital projects. The General fund tax revenue continues to be strong and provides a solid base for ongoing
operations.
14
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2024 City of Seward
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
As of December 31, 2024, the City had $186 million invested in capital assets net of accumulated depreciation,
representing an overall decrease of $3.7 million from the previous year.
Table 3
City of Seward Capital Assets
(in thousands, net of depreciation)
Governmental Business-Type
Activities Activities Total
2023 2024 2023 2024 2023 2024 Land and improvements $ 5,509 5,509 30,703 30,703 36,212 36,212
Buildings 33,160 31,466 12,987 12,365 46,147 43,831
Improvements other
than buildings 4,987 4,781 24,400 21,276 29,387 26,057
Machinery and equipment 1,360 1,616 8,684 9,148 10,044 10,764
Infrastructure 4,800 4,450 55,931 53,642 60,731 58,092
Construction in progress 1,626 2,643 5,604 8,446 7,230 11,089
Total net capital assets $ 51,442 50,465 138,309 135,580 189,751 186,045
Additional information regarding the City of Seward’s capital assets can be found in Footnote 6 on pages 42-
44.
Long-term Debt
As of December 31, 2024, the City had total debt outstanding of $39.57 million, excluding unamortized bond
premiums. Of this amount, $4 million represents outstanding general obligation bonds backed by the full faith
and credit of the City for construction of the library/museum and a road improvement bond. An additional
$24.6 million represents: revenue bonds backed by operating revenues from the harbor enterprise fund ($.7
million), the electric enterprise fund ($12.6 million), and long-term care facility ($11.3 million). The remaining
debt represents water and wastewater loans ($1.2 million), compensated absences ($0.7 million), and net
pension and OPEB liabilities ($9 million).
Table 4
City of Seward Outstanding Debt
(in thousands)
Governmental Business-Type
Activities Activities Total
2023 2024 2023 2024 2023 2024 General obligation bonds $ 4,215 3,980 - - 4,215 3,980
Revenue bonds - - 26,285 24,650 26,285 24,650
Loans - - 1,394 1,180 1,394 1,180
Compensated absences 527 501 199 211 726 712
Net pension liability 7,325 6,976 2,189 2,069 9,514 9,045
Total outstanding debt $ 12,067 11,457 30,067 28,110 42,134 39,567
15
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2024 City of Seward
Further detail regarding the City’s long-term outstanding debt can be found on pages 46-49.
Economic Factors and Next Year’s Budget and Rates
The past several years have seen strong economic growth in Seward, interrupted in 2020 by the COVID-19
pandemic. This growth has been driven largely by increased visitors and expansion of marine repair-related
business. Growth has positively impacted nightly lodging businesses, charter and tour boat operators, and local
retailers, and has driven up the cost of residential homes. The downtown business district has seen more retail
activity and aesthetic improvements to some store fronts. The harbor is bustling, and there is growing interest
in land leases at the Seward Marine Industrial Center on the east side of Resurrection Bay.
The General Fund’s primary source of revenue, sales tax, has shown consistent growth since 2020 and
continues to be a significant driver of General Fund operations. The City continues to be conservative with
spending as the 2025 summer season progresses to see where sales tax and bed tax revenues come in and to
deal with any operating interruptions. The 2024 sales tax budget is $7.6 million which is still below actual
receipts in 2024 but an increase from previous years. Property tax revenues are budgeted to increase slightly
in 2025.
On the General Fund cost side, expenditures were budgeted at $16,152,033. The General Fund budget was
balanced largely due to ongoing revenue enhancements (increased sale, property, and bed tax,) and continued
monitoring of expenditures. Large personnel expenditure increases are planned for 2025 in order to adjust
the payscale due to an increased cost of living in the area.
Tax rates are maintained at 2024 levels after the increase in property tax rates from 3.12 to 3.84 mills to cover
a general obligation bond for community-wide road improvements. The City sales tax rate remains at 4.0% and
the hotel/motel bed tax rate remains at 4.0%.
The harbor tariffs include an increase of 3.26% in 2024 and 2.96% in 2025, equal to the consumer price index
for Anchorage averaged over the five previous full years.
The electric tariff rates resumed approved increases of 3.6% in 2024 and 2.96% in 2025. A seasonal rate was
implemented to provide rate relief to year-round residents by increasing rates in the summer when residential
consumption tends to be lower and reducing rates in the winter. The City council continues to review the
sustainability of the Electric fund operations after a referendum to sell the utility failed to pass.
The water tariff increased .8% in 2023 as funds are needed to repay $159K annual debt on the Third Avenue
Water Main upgrade. In 2024, the tariff was increased 3.6% and in 2025 the rate will increase by 2.59%. The
Water Fund has not contributed toward the replacement of aging infrastructure in a number of years, as all
funds are needed to cover new debt payments and is undergoing a rate study to determine if any changes are
needed to continue to fund ongoing infrastructure and operational needs.
The wastewater tariff increased rates 3.6% in 2024 and 2.96% in 2025 with rate increases critical to the
financial solvency of the Fund due to the unavoidable need to incur new debt related to the replacement of
the two sewage lagoons in 2019, at an annual new debt service requirement of more than $75,000 per year.
These rate levels do not address critical or high-risk wastewater capital infrastructure needs and the City is in
the process of undergoing a rate study.
16
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2024 City of Seward
In the future, enterprise fund tariffs are expected to provide annual incremental rate increases equal to the
CPI, enabling them to keep pace with the increased cost of goods and services, preventing further erosion of
financial stability of those Funds.
Requests for Information
The City of Seward’s financial statements and the accompanying information are designed to present users
(citizens, taxpayers, elected officials, customers, investors, and creditors) with a general overview of the City’s
finances, and to demonstrate accountability to taxpayers and ratepayers. Questions concerning the
information in this report, or requests for additional information, can be addressed to the City of Seward,
Attention: Finance Director, P.O. Box 167, Seward, Alaska 99664.
Basic Financial Statements - Overview
These financial statements provide a summary of the financial position and results of operations of
all funds of the City, aggregated at the government-wide and the major fund level. The following
statements are included in this section:
Government-wide – Statement of Net Position
Government-wide – Statement of Activities
Governmental Funds – Balance Sheet
Reconciliation of Governmental Funds Balance Sheet to Statement of Net Position
Governmental Funds – Statement of Revenues, Expenditures and Change in Fund Balances
Reconciliation of the Changes in Fund Balances of Governmental Funds to Statement of
Activities
Proprietary Funds – Statement of Net Position
Proprietary Funds – Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds – Statement of Cash Flows
Notes to Basic Financial Statements
Exhibit A-1
Governmental Business-type
December 31, 2024 Activities Activities Total
Assets and Deferred Outflows of Resources
Assets
Cash and investments $ 19,455,312 37,165,667 56,620,979
Receivables, net of allowance for doubtful accounts:
Taxes 884,856 - 884,856
Accounts 697,256 15,413,619 16,110,875
Grants 121,302 527,983 649,285
Leases 402,470 6,178,511 6,580,981
Accrued interest 146,925 4,345 151,270
Other - 1,590,421 1,590,421
Prepaid items 1,055,997 20,330 1,076,327
Inventory - 1,650,237 1,650,237
Restricted cash and investments - 8,812,531 8,812,531
Other assets - 53,000 53,000
Internal balances (362,071) 362,071 -
Capital assets not being depreciated 8,152,356 39,148,928 47,301,284
Capital assets being depreciated, net of depreciation 42,312,445 96,430,674 138,743,119
Net OPEB assets 3,025,654 897,338 3,922,992
Total Assets 75,892,502 208,255,655 284,148,157
Deferred Outflows of Resources
Pension and OPEB related 678,198 201,138 879,336
Unamortized deferred loss on refunding - 1,208,758 1,208,758
Total Deferred Outflows of Resources 678,198 1,409,896 2,088,094
Total Assets and Deferred Outflows of Resources $ 76,570,700 209,665,551 286,236,251
(continued)
Statement of Net Position
City of Seward, Alaska
17
Exhibit A-1, continued
Governmental Business-type
December 31, 2024 Activities Activities Total
Liabilities, Deferred Inflows of Resources, and Net Position
Liabilities
Accounts payable $ 1,254,430 4,261,829 5,516,259
Payable to Providence Health and Services - Washington - 6,165,000 6,165,000
Due to contractual agencies - 17,000 17,000
Accrued payroll and related liabilities 375,645 1,028,956 1,404,601
Accrued interest 20,659 262,925 283,584
Other accrued liabilities 84,080 - 84,080
Customer deposits 18,241 1,151,040 1,169,281
Unearned revenue 965,269 1,287,136 2,252,405
Noncurrent Liabilities:
Due within one year:
Accrued compensated absences 130,726 58,571 189,297
Notes payable - 211,689 211,689
Bonds payable 245,000 1,870,000 2,115,000
Due in more than one year:
Accrued compensated absences 370,324 152,719 523,043
Notes payable - 968,522 968,522
Bonds payable 4,260,250 25,080,681 29,340,931
Net pension liabilities 6,976,244 2,068,990 9,045,234
Total Liabilities 14,700,868 44,585,058 59,285,926
Deferred Inflows of Resources
Related to leases 381,075 5,959,031 6,340,106
Pension and OPEB related 107,960 32,019 139,979
Unamortized deferred gain on refunding 81,768 - 81,768
Total Deferred Inflows of Resources 570,803 5,991,050 6,561,853
Total Liabilities and Deferred Inflows of Resources 15,271,671 50,576,108 65,847,779
Net Position
Net investment in capital assets 45,877,783 111,438,306 157,316,089
Restricted:
Commercial passenger vessel tax - 2,768,670 2,768,670
Net OPEB assets 3,025,654 897,338 3,922,992
Unrestricted 12,395,592 43,985,129 56,380,721
Total Net Position 61,299,029 159,089,443 220,388,472
Total Liabilities, Deferred Inflows of Resources, and Net Position $ 76,570,700 209,665,551 286,236,251
See accompanying notes to basic financial statements.
City of Seward, Alaska
Statement of Net Position, Continued
18
Exhibit B-1
Fees, Operating Capital
Fines & Grants & Grants & Govern- Business-
Charges for Contri- Contri- mental type
Year Ended December 31, 2024 Expenses Services butions butions Activities Activities Total
Governmental Activities
General government 3,644,599$ 642,472 172,562 - (2,829,565) - (2,829,565)
Public safety 5,353,134 92,756 185,225 - (5,075,153) - (5,075,153)
Public works 2,830,952 31,111 54,776 406,699 (2,338,366) - (2,338,366)
Parks and recreation 2,212,119 1,503,491 38,504 - (670,124) - (670,124)
Library 1,065,248 25,361 32,919 - (1,006,968) - (1,006,968)
Clinic 10,917 - - - (10,917) - (10,917)
Alaska Sealife Center 1,304,473 - - - (1,304,473) - (1,304,473)
Interest on long-term debt 123,980 - - - (123,980) - (123,980)
Total Governmental
Activities 16,545,422 2,295,191 483,986 406,699 (13,359,546) - (13,359,546)
Business-type Activities
Electric 14,616,068 16,837,740 6,234 - - 2,227,906 2,227,906
Water 1,497,530 1,455,989 19,277 - - (22,264) (22,264)
Wastewater 1,563,304 1,325,169 26,186 - - (211,949) (211,949)
Harbor 4,746,171 4,173,014 71,146 527,983 - 25,972 25,972
SMIC 2,401,361 1,219,415 11,844 - - (1,170,102) (1,170,102)
Healthcare facilities 28,585,970 29,017,000 - - - 431,030 431,030
Parking 198,223 474,824 1,829 - - 278,430 278,430
Total Business-type
Activities 53,608,627 54,503,151 136,516 527,983 - 1,559,023 1,559,023
Total 70,154,049$ 56,798,342 620,502 934,682 (13,359,546) 1,559,023 (11,800,523)
General Revenues
Taxes:
Sales taxes 8,077,227 - 8,077,227
Property taxes 1,944,128 - 1,944,128
Other taxes 873,682 - 873,682
Payment in lieu of taxes 159,913 - 159,913
Grants and entitlements not
restricted to a specific purpose 471,248 - 471,248
Investment income 584,476 1,266,043 1,850,519
Gain (loss) on disposal of capital assets 780,000 (8,341) 771,659
Transfers 1,203,723 (1,203,723) -
Total General Revenues and Transfers 14,094,397 53,979 14,148,376
Changes in net position 734,851 1,613,002 2,347,853
Net Position, beginning of year 60,564,178 157,476,441 218,040,619
Net Position, end of year 61,299,029$ 159,089,443$ 220,388,472$
See accompanying notes to basic financial statements.
City of Seward, Alaska
Statement of Activities
Net (Expense) Revenue and
Program Revenues Changes in Net Position
19
Exhibit C-1
Total
General Nonmajor Governmental
December 31, 2024 Fund Funds Funds
Assets
Cash and investments 13,631,072$ 5,323,190 18,954,262
Receivables, net of allowance for
doubtful accounts:
Taxes 884,856 - 884,856
Accounts 197,256 500,000 697,256
Grants 40,000 81,302 121,302
Leases 402,470 - 402,470
Accrued interest 146,925 - 146,925
Prepaid items 918,117 137,880 1,055,997
Due from other funds 81,302 - 81,302
Total Assets 16,301,998$ 6,042,372 22,344,370
Liabilities and Fund Balances
Liabilities
Accounts payable 1,058,179 196,251 1,254,430
Accrued payroll and related liabilities 375,645 - 375,645
Accrued liabilities 84,080 - 84,080
Deposits 18,241 - 18,241
Due to other funds - 81,302 81,302
Unearned revenue 121,204 844,065 965,269
Interfund loans payable 837,450 - 837,450
Total Liabilities 2,494,799 1,121,618 3,616,417
Deferred Inflows of Resources
Related to leases 381,075 - 381,075
Total Liabilities and Deferred Inflows
of Resources 2,875,874 1,121,618 3,997,492
Fund Balances
Nonspendable:
Prepaid items 918,117 137,880 1,055,997
Committed:
Working capital 1,500,000 - 1,500,000
Hospital line of credit 500,000 - 500,000
Insurance reserves 701,036 - 701,036
Assigned:
Capital projects - 4,820,787 4,820,787
Public works - 2,499 2,499
Unassigned (deficit)9,806,971 (40,412) 9,766,559
Total Fund Balances 13,426,124 4,920,754 18,346,878
Total Liabilities, Deferred Inflows of Resources, and Fund Balances 16,301,998$ 6,042,372$ 22,344,370$
See accompanying notes to basic financial statements.
Governmental Funds
Balance Sheet
City of Seward, Alaska
20
Exhibit C-2
Total fund balances for governmental funds $ 18,346,878
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds. These
assets consist of:
Land $ 5,509,589
Construction in progress 2,642,767
Buildings 72,696,430
Infrastructure 10,283,575
Improvements other than buildings 19,050,373
Machinery and equipment 11,385,282
Accumulated depreciation (71,103,215)
Total capital assets 50,464,801
Other long-term assets are not available to pay for current period
expenditures and, therefore, are unavailable in the funds:
Proportionate share of the collective net OPEB assets 3,025,654
Deferred outflows of resources related to pensions and OPEB plans
are not deemed available to pay current period expenditures and, therefore,
are not reported in governmental funds. 678,198
Deferred inflows of resources related to pensions and OPEB plans
are not deemed available to pay current period expenditures and, therefore,
are not reported in governmental funds. (107,960)
An internal service fund is used by the City to charge the cost of
accrued compensated absences for the governmental funds. The
net position of the internal service fund attributable to governmental
activities is included in the governmental column of the
Statement of Net Position.
Net position related to governmental activities 475,379
Plus amount reported with long-term liabilities 501,050 976,429
Long-term liabilities are not deemed due and payable in the
current period and, therefore, are not reported as governmental Internal
fund liabilities. These long-term liabilities consist of: Governmental Service
General obligation bonds payable $ (3,980,000) -
Accrued interest on bonds (20,659) -
Unamortized bond premium (525,250) -
Deferred gain on refunding (81,768) -
Accrued compensated absences - (501,050)
Proportionate share of the collective net pension liability (6,976,244) -
Total long-term liabilities $ (11,583,921) (501,050) (12,084,971)
Total Net Position of Governmental Activities $ 61,299,029
See accompanying notes to basic financial statements.
Reconciliation of Governmental Funds Balance Sheet
to Statement of Net Position
City of Seward, Alaska
December 31, 2024
21
Exhibit D-1
Total
General Nonmajor Governmental
Year Ended December 31, 2024 Fund Funds Funds
Revenues
Taxes $ 11,060,685 - 11,060,685
Licenses and permits 187,217 - 187,217
Intergovernmental 710,102 163,617 873,719
Charges for services 3,814,739 - 3,814,739
Fines and bails 39,956 - 39,956
Investment income 584,253 223 584,476
Other revenues 383,675 258,057 641,732
Total Revenues 16,780,627 421,897 17,202,524
Expenditures
Current:
General government 5,314,410 305,375 5,619,785
Public safety 5,408,420 - 5,408,420
Public works 2,132,292 - 2,132,292
Parks and recreation 2,140,744 - 2,140,744
Library 846,269 - 846,269
Debt service:
Principal payments 235,000 - 235,000
Interest payments 175,544 - 175,544
Capital outlay - 1,122,976 1,122,976
Total Expenditures 16,252,679 1,428,351 17,681,030
Excess (deficiency) of revenues
over expenditures 527,948 (1,006,454) (478,506)
Other Financing Sources (Uses)
Proceeds from sale of capital assets - 780,000 780,000
Transfers in 3,013,345 3,082,434 6,095,779
Transfers out (4,542,056) (350,000) (4,892,056)
Total Other Financing Sources (Uses)(1,528,711) 3,512,434 1,983,723
Change in Fund Balances (1,000,763) 2,505,980 1,505,217
Fund Balances, beginning of year 14,426,887 2,414,774 16,841,661
Fund Balances, end of year $13,426,124 4,920,754 18,346,878
See accompanying notes to basic financial statements.
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
City of Seward, Alaska
22
Exhibit D-2
Net change in fund balances - total governmental funds 1,505,217$
The change in net position reported for governmental activities in the
Statement of Activities is different because:
Governmental funds report capital outlays as expenditures. However,
on the Statement of Activities, depreciation expense is recognized to
allocate the cost of these items over their estimated useful lives. This
is the amount by which depreciation ($2,549,189) exceeded
capital outlays ($1,571,666). (977,523)
Some expenses reported in the Statement of Activities do not require the
use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.
Change in accrued interest payable 979$
Change in the proportionate share of the
net pension and OPEB assets and liabilities (80,247) (79,268)
Changes in deferred inflows and outflows of resources are the results of
timing differences in the actuarial report and adjustments to reflect
employee and non-employee contributions based on the measurement
date.
Change in deferred inflows and outflows of resources
related to net pension and OPEB assets and liabilities (30,154)
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net position:
Principal repayments 235,000
Amortization of deferred gain on bond refunding 6,814
Bond premium amortization 43,771 285,585
An internal service fund is used by the City to charge the cost of
vehicles and heavy equipment to individual funds. A portion of the
net revenue of these activities is reported with governmental activities. 30,994
Change in Net Position of Governmental Activities 734,851$
See accompanying notes to basic financial statements.
Reconciliation of Statement of Revenues, Expenditures and Change in
Fund Balances of Governmental Funds to the Statement of Activities
City of Seward, Alaska
Year Ended December 31, 2024
23
Exhibit E-1
Nonmajor Total Internal
Healthcare Enterprise Enterprise Service
December 31, 2024 Electric Harbor SMIC Facilities Funds Funds Funds
Assets and Deferred Outflows of Resources
Current Assets
Cash and investments $3,947,417 1,201,950 637,112 20,338,023 9,200,274 35,324,776 2,341,941
Receivables, net of allowance
for doubtful accounts:
Accounts 2,296,422 237,117 139,425 12,348,000 392,655 15,413,619 -
Accrued interest - - - - 4,345 4,345 9,589
Interfund loans - - - - 69,778 69,778 120,005
Grants - 527,983 - - - 527,983 -
Leases - 209,737 80,665 - - 290,402 -
Other 66,677 273 - 1,503,000 2,125 1,572,075 18,346
Prepaid items 20,330 - - - - 20,330 -
Inventory 1,549,216 - - - 101,021 1,650,237 -
Total Current Assets 7,880,062 2,177,060 857,202 34,189,023 9,770,198 54,873,545 2,489,881
Noncurrent Assets
Restricted cash and investments 2,900,102 4,519,479 - 1,392,950 - 8,812,531 -
Other assets - - - 53,000 - 53,000 -
Interfund loans, net of current portion - - - - 456,866 456,866 900,092
Leases - 4,009,099 1,879,010 - - 5,888,109 -
Property, plant, and equipment:
Capital assets not being depreciated 3,612,667 21,247,360 12,021,821 793,460 1,473,620 39,148,928 -
Capital assets being depreciated,
net of depreciation 26,056,229 16,199,039 28,960,040 10,108,727 11,455,516 92,779,551 3,651,123
Net OPEB assets 40,980 467,652 77,852 - 310,854 897,338 -
Total Noncurrent Assets 32,609,978 46,442,629 42,938,723 12,348,137 13,696,856 148,036,323 4,551,215
Total Assets 40,490,040 48,619,689 43,795,925 46,537,160 23,467,054 202,909,868 7,041,096
Deferred Outflows of Resources
Related to pension and OPEB 9,186 104,824 17,450 - 69,678 201,138 -
Unamortized deferred loss on refunding 292,648 32,351 - 883,759 - 1,208,758 -
Total Deferred Outflows of Resources 301,834 137,175 17,450 883,759 69,678 1,409,896 -
Total Assets and Deferred Outflows
of Resources $40,791,874 48,756,864 43,813,375 47,420,919 23,536,732 204,319,764 7,041,096
(continued)
City of Seward, Alaska
Major Enterprise Funds
Statement of Net Position
Proprietary Funds
24
Exhibit E-1, continued
Nonmajor Total Internal
Healthcare Enterprise Enterprise Service
December 31, 2024 Electric Harbor SMIC Facilities Funds Funds Funds
Liabilities, Deferred Inflows of Resources, and Net Position
Current Liabilities
Accounts payable $1,336,645 116,420 10,723 2,612,000 150,743 4,226,531 35,298
Payable to Providence Health and
Services - Washington - - - 6,165,000 - 6,165,000 -
Due to contractual agencies - - - 17,000 - 17,000 -
Accrued payroll and related
liabilities 70,216 56,236 3,622 865,000 33,882 1,028,956 -
Accrued interest 88,770 11,745 - 163,239 8,760 272,514 -
Current portion:
Accrued compensated absences 20,991 21,244 5,311 - 11,025 58,571 130,726
Bonds payable 370,000 400,000 - 1,100,000 - 1,870,000 -
Notes payable - - - - 211,689 211,689 -
Interfund loans - 69,778 - 88,988 - 158,766 -
Customer deposits 1,112,540 24,800 13,700 - - 1,151,040 -
Unearned revenue - 587,806 22,582 - 676,748 1,287,136 -
Total Current Liabilities 2,999,162 1,288,029 55,938 11,011,227 1,092,847 16,447,203 166,024
Noncurrent Liabilities, net of current portion
Accrued compensated absences 12,678 70,095 17,524 - 52,422 152,719 370,324
Bonds payable, including
unamortized premium 13,622,077 406,343 - 11,052,261 - 25,080,681 -
Notes payable - - - - 968,522 968,522 -
Interfund loans - 456,866 - 93,659 - 550,525 -
Net pension liabilities 94,487 1,078,264 179,503 - 716,736 2,068,990 -
Total Noncurrent Liabilities 13,729,242 2,011,568 197,027 11,145,920 1,737,680 28,821,437 370,324
Total Liabilities 16,728,404 3,299,597 252,965 22,157,147 2,830,527 45,268,640 536,348
Deferred Inflows of Resources
Related to leases - 4,099,754 1,859,277 - - 5,959,031 -
Related to pension and OPEB 1,462 16,687 2,778 - 11,092 32,019 -
Total Liabilities and Deferred Inflows
of Resources 16,729,866 7,416,038 2,115,020 22,157,147 2,841,619 51,259,690 536,348
Net Position
Net investment in capital assets 16,914,457 37,115,305 40,981,861 1,026,635 11,748,925 107,787,183 3,651,123
Restricted:
Commercial passenger vessel tax - 2,768,670 - - - 2,768,670 -
Net OPEB assets 40,980 467,652 77,852 - 310,854 897,338 -
Unrestricted 7,106,571 989,199 638,642 24,237,137 8,635,334 41,606,883 2,853,625
Total Net Position 24,062,008 41,340,826 41,698,355 25,263,772 20,695,113 153,060,074 6,504,748
Total Liabilities, Deferred Inflows of
Resources and Net Position $40,791,874 48,756,864 43,813,375 47,420,919 23,536,732 7,041,096
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.6,029,369
Net Position of Business-type Activities $159,089,443
See accompanying notes to basic financial statements.
City of Seward, Alaska
Proprietary Funds
Statement of Net Position, continued
Major Enterprise Funds
25
Exhibit E-2
Nonmajor Total Internal
Healthcare Enterprise Enterprise Service
Year Ended December 31, 2024 Electric Harbor SMIC Facilities Funds Funds Funds
Operating Revenues
Charges for services $ 16,799,345 3,930,912 1,118,852 29,017,000 3,202,839 54,068,948 -
Vehicle rental and interfund
charges - - - - - - 985,050
Total Operating Revenues 16,799,345 3,930,912 1,118,852 29,017,000 3,202,839 54,068,948 985,050
Operating Expenses
Salaries and employee benefits 1,763,894 1,458,804 234,626 20,186,000 1,011,637 24,654,961 501,050
Services and supplies 9,110,976 1,032,454 172,208 4,757,000 908,599 15,981,237 13,896
Administration 1,333,419 461,077 345,491 1,586,000 532,307 4,258,294 -
Depreciation 1,880,243 1,770,059 1,654,951 1,520,714 789,155 7,615,122 514,897
Total Operating Expenses 14,088,532 4,722,394 2,407,276 28,049,714 3,241,698 52,509,614 1,029,843
Income (Loss) from Operations 2,710,813 (791,482) (1,288,424) 967,286 (38,859) 1,559,334 (44,793)
Nonoperating Revenues (Expenses)
Intergovernmental - PERS on-behalf 6,234 71,146 11,844 - 47,292 136,516 -
Interest income - 216,041 100,563 - 14,306 330,910 9,589
Investment income 217,908 155,537 22,615 555,242 314,741 1,266,043 74,113
Salary credits - work orders (13,500) - - - - (13,500) -
Supply credits - work orders 1,718 - - - - 1,718 -
(Loss) on sale of capital assets - - - - (8,341) (8,341) -
Interest expense (537,591) (31,348) - (412,880) (20,079) (1,001,898) -
Other revenue (expenses) 50,177 26,061 - (123,376) 38,837 (8,301) 18,346
Total Nonoperating
Revenues (Expenses)(275,054) 437,437 135,022 18,986 386,756 703,147 102,048
Income (Loss) Before Contributions
and Transfers 2,435,759 (354,045) (1,153,402) 986,272 347,897 2,262,481 57,255
Capital contributions:
State of Alaska - 527,983 - - - 527,983 -
Transfers in - - - 2,031,082 - 2,031,082 -
Transfers out (1,992,000) (802,160) (171,692) - (268,953) (3,234,805) -
Change in net position 443,759 (628,222) (1,325,094) 3,017,354 78,944 1,586,741 57,255
Net Position, beginning of year 23,618,249 41,969,048 43,023,449 22,246,418 20,616,169 151,473,333 6,447,493
Net Position, end of year $ 24,062,008 41,340,826 41,698,355 25,263,772 20,695,113 153,060,074 6,504,748
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 26,261
Change in Net Position of Business-type Activities $ 1,613,002
See accompanying notes to basic financial statements.
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
Major Enterprise Funds
City of Seward, Alaska
26
Exhibit E-3
Nonmajor Total Internal
Healthcare Enterprise Enterprise Service
Year Ended December 31, 2024 Electric Harbor SMIC Facilities Funds Funds Funds
Cash Flows from (for) Operating Activities
Receipts from customers and users $ 17,391,417 3,982,659 1,104,026 26,714,000 3,354,069 52,546,171 -
Payments to suppliers (9,362,466) (903,389) (305,833) (3,837,376) (1,071,887) (15,480,951) 21,402
Payments to employees (1,773,807) (1,351,527) (199,181) (20,338,000) (939,400) (24,601,915) (526,985)
Payments for interfund services used (1,151,855) (542,980) (207,760) - (506,336) (2,408,931) -
Receipts from vehicle rentals and interfund charges - - - - - - 986,350
Net cash flows from operating activities 5,103,289 1,184,763 391,252 2,538,624 836,446 10,054,374 480,767
Cash Flows from (for) Noncapital Financing Activities
Transfers in - - - 2,031,082 - 2,031,082 -
Transfers out (1,992,000) (802,160) (171,692) - (268,953) (3,234,805) -
Net cash flows from (for) noncapital
financing activities (1,992,000) (802,160) (171,692) 2,031,082 (268,953) (1,203,723) -
Cash Flows from (for) Capital and Related
Financing Activities
Leases - 218,109 50,983 - - 269,092 -
Principal payments on long-term debt (205,000) (385,000) - (1,045,000) (214,223) (1,849,223) -
Interest payments on long-term debt (576,700) (48,850) - (421,007) (22,066) (1,068,623) -
Acquisition of property, plant and equipment (1,986,629) (36,280) (12,748) (1,544,521) (551,767) (4,131,945) (1,277,115)
Capital contributions - 1,216,500 - - - 1,216,500 -
Proceeds from the sale of capital assets - - - - 35 35 -
Principal payments on interfund loans - (68,076) - (84,548) - (152,624) -
Interfund interest payments - (14,868) - (14,028) - (28,896) -
Net cash flows from (for) capital and
related financing activities (2,768,329) 881,535 38,235 (3,109,104) (788,021) (5,745,684) (1,277,115)
Cash Flows from Investing Activities
Investment income 217,908 155,537 22,615 555,242 314,741 1,266,043 74,113
Interfund loan receipts - - - - 68,076 68,076 115,565
Interfund interest received - - - - 14,867 14,867 14,028
Net cash flows from investing activities 217,908 155,537 22,615 555,242 397,684 1,348,986 203,706
Net change in cash and investments 560,868 1,419,675 280,410 2,015,844 177,156 4,453,953 (592,642)
Cash and Investments, beginning of year 6,286,651 4,301,754 356,702 19,715,129 9,023,118 39,683,354 2,934,583
Cash and Investments, end of year $ 6,847,519 5,721,429 637,112 21,730,973 9,200,274 44,137,307 2,341,941
Reconciliation of cash and investments to the
Statement of Net Position:
Cash and investments $ 3,947,417 1,201,950 637,112 20,338,023 9,200,274 35,324,776 2,341,941
Restricted cash and investments 2,900,102 4,519,479 - 1,392,950 - 8,812,531 -
Total Cash and Investments $ 6,847,519 5,721,429 637,112 21,730,973 9,200,274 44,137,307 2,341,941
(continued)
Major Enterprise Funds
Proprietary Funds
Statement of Cash Flows
City of Seward, Alaska
27
Exhibit E-3, continued
Nonmajor Total Internal
Healthcare Enterprise Enterprise Service
Year Ended December 31, 2024 Electric Harbor SMIC Facilities Funds Funds Funds
Reconciliation of income (loss) from operations
to net cash flows from (for) operating activities:
Income (loss) from operations $ 2,710,813 (791,482) (1,288,424) 967,286 (38,859) 1,559,334 (44,793)
Adjustments to reconcile income (loss)
from operations to net cash flow from (for)
operating activities:
Depreciation 1,880,243 1,770,059 1,654,951 1,520,714 789,155 7,615,122 514,897
Other nonoperating revenues (expenses) 38,395 26,061 - (123,376) 38,837 (20,083) -
Noncash expense - PERS on-behalf 6,234 71,146 11,844 - 47,292 136,516 -
Increase (decrease) in allowance for doubtful accounts 27,931 25,434 - 498,000 (5,358) 546,007 -
(Increase) decrease in assets and deferred
outflows of resources:
Customer receivables 74,321 729 (14,226) (2,801,000) 117,751 (2,622,425) 1,300
Prepaid items and other assets (169) - - 12,000 - 11,831 -
Inventory (167,193) - - - (31,942) (199,135) -
Net OPEB assets 40,022 48,373 893 - 45,850 135,138 -
Deferred outflows of resources - pension and OPEB 9,404 13,604 622 - 12,186 35,816 -
Increase (decrease) in liabilities and
deferred inflows of resources:
Accounts payable 97,436 47,162 4,106 862,000 (105,375) 905,329 35,298
Other payables - - - 1,755,000 - 1,755,000 -
Accrued payroll and related liabilities 9,602 10,724 1,718 (152,000) 8,724 (121,232) (25,935)
Accrued compensated absences 5,140 (8,639) 9,439 - 6,551 12,491 -
Customer deposits 451,425 (2,900) (600) - - 447,925 -
Unearned revenue - 2,423 - - - 2,423 -
Net pension liabilities (77,264) (15,870) 12,538 - (39,587) (120,183) -
Deferred inflows of resources - pension and OPEB (3,051) (12,061) (1,609) - (8,779) (25,500) -
Net Cash Flows from Operating Activities $ 5,103,289 1,184,763 391,252 2,538,624 836,446 10,054,374 480,767
See accompanying notes to basic financial statements.
City of Seward, Alaska
Proprietary Funds
Statement of Cash Flows, continued
Major Enterprise Funds
28
City of Seward, Alaska
Notes to Basic Financial Statements
December 31, 2024
29
1. Summary of Significant Accounting Policies
Reporting Entity
The City of Seward, Alaska (the City) was incorporated June 1, 1912 as a home-rule city and operates
under a Council-Manager form of government. The City provides the full range of municipal services
as provided for by Alaska Statute. This includes police and fire protection, electric, water and
wastewater services, library, parks and recreation, public improvements, planning and zoning, port
and harbor, hospital and long-term care, and general administrative services.
The City reports the Providence Seward Medical Center (PSMC) as an enterprise fund in accordance
with the provisions of GASB Statement No. 61, The Financial Reporting Entity: Omnibus. In 2013,
the City entered into a contractual agreement with a nonprofit organization as co-signees to a
federally funded health clinic program.
The hospital and long-term care facilities (PSMC) are owned by the City of Seward. The facilities
are managed by Providence Health & Services – Washington, a nonprofit corporation (the
Corporation), under a management and operating agreement. Under the operating agreement, the
Corporation is responsible for day-to-day management of the hospital and long-term care facilities
in exchange for a management fee. All financial risks and rewards from the operations of the
hospital and long-term care facilities accrue to the City. The City is responsible for debt obligations,
including payment of revenue bonds through revenues generated at the PSMC. The City pays for all
capital costs of the healthcare facilities and is legally obligated to finance potential deficits.
Government-Wide and Fund Financial Statements
The accounting policies of the City conform to accounting principles generally accepted in the
United States of America (GAAP) as applicable to governments. The following is a summary of the
more significant policies:
The government-wide financial statements (i.e., the statement of net position and the statement
of activities) report information on all of the nonfiduciary activities of the primary government. All
fiduciary activities are only reported in the fund financial statements. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately
from business-type activities, which rely primarily on fees and charges to external parties.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are utility charges between the enterprise
funds and other funds and departments. Elimination of these charges would distort the direct costs
and program revenues reported for the various functions concerned.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
30
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segment are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or segment. Program revenues include 1) fees, fines and charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes,
investment income and other items not properly included among program revenues are reported
instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate
columns in the fund financial statements. The remaining governmental and enterprise funds are
aggregated and reported as nonmajor funds. The internal service funds are combined into a single
aggregated presentation in the proprietary fund financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide and proprietary fund financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. Revenues are recorded when
transactions occur and expenses are recorded when a liability is incurred, regardless of the timing
of the related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. For this purpose, the City considers all revenues, except reimbursement grants, to be
available if they are collected within 60 days after year end. Reimbursement grants are considered
available if they are collected within one year of the end of the current fiscal period. Expenditures
generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences, pensions and other
postemployment benefits are recorded only to the extent they have matured.
Property taxes, sales taxes, charges for services, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as revenues of
the current fiscal period. Only the portion of special assessments receivable due within the current
fiscal period is considered to be susceptible to accrual as revenue in the current period. Most other
revenue items are considered to be measurable and available only when received by the City.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
31
The City reports the following major funds based on the required quantitative criteria:
Major Governmental Funds:
The General Fund is the government’s main operating fund. It accounts for all financial resources of
the general government, except those required to be reported in another fund.
Major Enterprise Funds:
The Electric Enterprise Fund accounts for all activities related to the operation of the City’s electric
utility.
The Harbor Enterprise Fund accounts for the marine-related activities of the City’s harbor.
The Seward Marine Industrial Center (SMIC) Enterprise Fund accounts for marine-related services on
the east side of Resurrection Bay.
The Healthcare Facilities Enterprise Fund accounts for the healthcare facilities, local hospital and
long-term care facilities.
Additionally, the City also reports the following fund types:
Special Revenue Funds – account for revenue sources that are legally restricted or committed to
expenditure for specific purposes.
Capital Project Funds – account for the acquisition of capital assets or construction of major capital
projects not being financed by proprietary funds.
Internal Service Funds - the City reports two Internal Service Funds which account for the activities
relating to the City’s motor pool activities of the other funds and compensated absences of the
governmental funds. The Motor Pool Internal Service Fund reports revenues charged to the other funds
based on rental fees and capital lease payments designed to cover the cost of the lease payments and
to fund depreciation. The Compensated Absences Internal Service Fund accounts for the accrual and
payment of compensated absences of the governmental activities.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. In addition, general revenues include all taxes, investment income, and State of
Alaska entitlement revenues.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. Operating expenses for the proprietary
funds include the costs of sales and services, administrative expenses, and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America (GAAP) requires management to make estimates and assumptions that affect
the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of
resources and disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenditures / expenses during the reporting period. Actual results
could differ from those estimates.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
32
Cash and Investments
A central treasury is used to account for the City’s cash and investments to maximize investment income.
Investment income is allocated among the funds based on their respective cash balances. Investments are
stated at fair value. For purposes of the statement of cash flows, the City has defined cash as demand
deposits and all investments maintained in the cash management pool, regardless of maturity period,
since various funds use the cash management pool essentially as a demand deposit account.
Accounts Receivable
All trade and tax receivables are shown net of an allowance for uncollectible accounts, determined by
historical experience. Ambulance receivable allowance is recorded at 30 percent, based on historical
recoveries.
Inventory
Inventories are valued at cost in the proprietary funds using the first-in, first-out method. The cost is
recorded as an expense at the time individual inventory items are consumed (consumption method).
Restricted Assets
Restricted cash and investments are held in the proprietary funds, and are restricted because their use is
limited by bond covenant or grant agreements for the construction of capital assets.
Leases – Lessor Accounting
The City is a lessor for non-cancellable leases and recognizes leases receivable and a deferred inflows of
resources in the financial statements. At the commencement of a lease, the City initially measures the
lease receivable at the present value of payments expected to be received during the lease term.
Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The
deferred inflow of resources is initially measured as the amount of the lease receivable at recognition,
adjusted for lease payments received at or before the lease commencement date. Subsequently, the
deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the
expected lease receipts to present value, (2) lease term, and (3) lease receipts.
a) The City uses its current incremental borrowing rate as the discount rate for leases.
b) The lease term includes the non-cancellable period of the lease; the term of the lease contract,
including options to extend, must be more than 12 months. Lease receipts included in the
measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its leases and will
remeasure the lease receivable and deferred inflows of resources if certain changes occur that are
expected to significantly affect the amount of the lease receivable.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
33
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items. The prepaid items do not reflect available resources and, thus, an equivalent portion of
fund balance is classified as nonspendable in the governmental fund financial statements. Cost is recorded
as an expenditure or expense as the prepayment is applied (consumption method).
Interfund Balances
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end
of the year are referred to as either “due to / from other funds” or “interfund loans” if the balance is not
expected to be repaid within one year. Any residual balances outstanding between the governmental
activities and business-type activities are reported in the government-wide financial statements as
“internal balances.”
Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g. roads and similar
items), are reported in the applicable governmental or business-type activities columns in the government-
wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost
of more than $2,500 and an estimated useful life in excess of one year. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded
at acquisition value at the date of donation. Acquisition value is the price that would be paid to acquire
an asset with equivalent service potential in an orderly market transaction at the acquisition date. In the
case of the initial capitalization of infrastructure assets, the City chose to include all such items, regardless
of their acquisition date.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
the useful life of the asset are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of
the capitalized value of the assets constructed.
Capital assets reimbursed by outside entities, including granting agencies, are recorded as capital
contributions in the enterprise funds.
Property, plant, and equipment of the City is depreciated using the straight-line method over the following
estimated useful lives:
Assets Years
Buildings and improvements 20-40 years
Infrastructure 10-50 years
Machinery and equipment 3-8 years
Improvements other than buildings 3-40 years
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
34
Accrued Compensated Absences
The City allows employees to accumulate earned but unused vacation and sick leave benefits. All accrued
compensated absences are accrued when incurred in the government-wide and proprietary fund financial
statements. Accrued compensated absences that are earned in the governmental funds are accounted for
in the Compensated Absences Internal Service Fund.
Long-term Debt
In the government-wide and proprietary fund financial statements, long-term debt and other long-term
obligations are reported as liabilities in the Statement of Net Position. Bond premiums and discounts are
amortized over the life of the bonds on a straight-line basis, which approximates the effective interest
rate method. Bonds payable, as reported, include amounts of unamortized bond premiums or discounts.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during
the current period. The face amount of the debt issuances are reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. Principal payments on debt are reported as debt service
expenditures.
Fund Balance and Fund Balance Flow Assumptions
Governmental fund financial statements report aggregate amounts for five classifications of fund balances
based on the constraints imposed on the use of these resources. The nonspendable fund balance
classification includes amounts that cannot be spent because they are either (a) not in spendable form—
prepaid items or inventories; or (b) legally or contractually required to be maintained intact.
The spendable portion of the fund balances comprises the remaining four classifications: restricted,
committed, assigned, and unassigned.
Restricted fund balance – This classification reflects the constraints imposed on resources either externally
by creditors, grantors, contributors, or laws or regulations of other governments; or imposed by law through
constitutional provisions or enabling legislation.
Committed fund balance – These amounts can only be used for specific purposes pursuant to constraints
imposed by formal resolutions of the City Council—the government’s highest level of decision-making
authority. Those committed amounts cannot be used for any other purpose unless the City Council removes
the specified use, also through resolution. This classification also includes contractual obligations to the
extent that existing resources in the fund have been specifically committed for use in satisfying those
contractual requirements.
Assigned fund balance – This classification reflects the amounts constrained by the City’s “intent” to be
used for specific purposes, but are neither restricted nor committed. City Resolution 2009- 131 delegates
authority to assign fund balance to the City Manager and the Finance Director. Assigned fund balances, by
default, include all remaining amounts (except negative balances) that are reported in governmental
funds, other than the General Fund, that are not classified as nonspendable and are neither restricted nor
committed.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
35
Unassigned fund balance – This fund balance is the residual classification for the General Fund. It is also
used to report negative fund balances in other governmental funds.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use
externally restricted resources first, then unrestricted resources—committed, assigned, and unassigned—
in order as needed.
Net Position and Net Position Flow Assumptions
Net position represents the residual interest in the City’s assets and deferred outflows of resources after
liabilities and deferred inflows of resources are deducted and consists of three components: net
investment in capital assets, restricted, and unrestricted net position. Net investment in capital assets
includes capital assets, net of accumulated depreciation, reduced by outstanding debt incurred to acquire,
construct, or improve those capital assets, excluding unexpended proceeds. The restricted category
represents the balance of assets restricted for general use by external parties (creditors, grantors,
contributors, or laws or regulations of other governments) or imposed by law through constitutional
provisions or enabling legislation. Unrestricted net position consists of the net position not meeting the
definition of either of the other two components.
Sometimes the City will fund outlays for a purpose with both restricted and unrestricted resources. To
calculate the amounts to report as restricted and unrestricted net position in the government-wide and
proprietary fund financial statements, a flow assumption must be made about the order in which the
resources are applied. It is the City’s policy to consider restricted net position to be used before
unrestricted net position is applied.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for
expenditures are recorded to reserve that portion of the applicable appropriation, is employed as an
extension of formal budgetary integration in the General Fund during the year. However, it is the City’s
policy to stop issuing purchase orders in early December. As a result, there are no outstanding
encumbrances at December 31, 2024. Outstanding purchase orders, if any, at December 31, are cancelled
and new ones are issued in the subsequent year.
Unearned Revenue
Amounts received from grantor agencies, which are restricted as to use and have not been expended for
the intended use, are shown as unearned revenue.
Grant and Other Intergovernmental Revenues
In applying the measurable and available concepts to grants and intergovernmental revenues, the legal
and contractual requirements of the numerous individual programs are used as guidance. There are,
however, two types of these revenues. In one, monies must be expended on the specific purpose or project
before any amounts are considered “recognizable”; therefore, revenues are recognized based upon
expenditures recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and
are usually revocable only for failure to comply with prescribed compliance requirements. These resources
are reflected as revenues at the time of receipt or earlier if the measurable and available criteria are
met.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
36
Pension Plans
With the exception of certain Electric Fund employees, substantially all other employees of the City
participate in the Public Employees' Retirement System (PERS) administered by the State of Alaska. Certain
Electric Fund employees participate in the International Brotherhood of Electrical Workers (IBEW) Defined
Benefit Pension Plan.
Pension and Other Postemployment Benefits (OPEB)
For purposes of measuring the net pension and OPEB assets and liabilities, deferred outflows of resources
and deferred inflows of resources related to pensions and OPEB, and pension and OPEB expense,
information about the fiduciary net position of the Public Employees’ Retirement System (PERS) and
additions to/from PERS’s fiduciary net position have been determined on the same basis as they are
reported by PERS. For this purpose, benefit payments (including refunds of employee contributions) are
recognized when due and payable in accordance with the benefit terms. Investments are reported at fair
value.
Deferred Outflows of Resources and Deferred Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net assets that applies to a future period(s) and so will not be recognized as
an outflow of resources (expense/expenditure) until then. Generally, the City reports deferred charges
on bond refunding and pension and OPEB related items as deferred outflows of resources. These items are
amortized as expenses over time.
In addition to the liabilities, the financial statements may also present deferred inflows of resources.
Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and
will be recognized as an inflow of resources (revenue) in a future period(s). The City reports certain
pension and OPEB related items as deferred inflows of resources. These items are recognized as a
reduction of the pension and OPEB expense over varying periods of time based on their nature.
Property Taxes
Property taxes are liens on the assessed value of taxable property as of January 1. Pursuant to Alaska
Statutes, the City establishes the mill rate and tax levy on or before June 15. The City is located within
the Kenai Peninsula Borough, which acts as the City’s agent in the billing and collection of property taxes.
Tax bills for one-half of the taxes are mailed prior to July 1 and are payable on August 15; tax bills for the
second-half of the taxes are mailed by October 1 and are payable on November 15. City property tax
revenues are recognized in the fiscal year in which they are collectible and available (collected within
sixty days after year-end) to finance expenditures of the fiscal year.
At December 31, any delinquent real and personal property taxes not currently available are reflected as
deferred inflows of the General Fund. No delinquent amounts were reported as of December 31, 2024.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
37
2. Stewardship, Compliance, and Accountability
Allocation of Sales Tax Revenues
When the City transferred the operations of the Hospital to Providence Seward Medical and Care Center
on July 1, 1996, the City agreed to allocate 1% of the sales tax for the benefit of the Hospital. During
construction, the allocated sales tax was used to offset losses and transition costs. Subsequent to
completion of the construction, the allocated sales tax has been used to fund the debt service on the
Hospital general obligation bonds. Upon maturity of hospital bonds, sales tax revenues will be used to
fund healthcare capital and operating costs, and debt service on long-term care facility bonds, if
necessary. All sales tax revenue is recorded in the General Fund. The allocated portion is then transferred
to the Healthcare Facilities Enterprise Fund for debt service.
3. Cash and Investments
The City of Seward maintains a central treasury that is available for use by all funds. Each fund’s portion
of the central treasury is displayed on the balance sheet as “cash and investments” or in the case of
“negative cash,” is included in “due to other funds.”
Investments
City statutes authorize the City to invest in obligations of the U.S. Treasury and U.S. agencies, bankers’
acceptances, repurchase agreements, commercial paper issued by corporations or businesses and having
the highest rating of a nationally-recognized rating service and maturing within nine months, certificates
of deposit insured by federal depository insurance or secured by eligible collateral held by a third party
in the City’s name, and investments through the Alaska Municipal League Investment Pool (AMLIP). The
City’s investment policy does not specify a maximum investment maturity, but the City generally invests
funds for less than five years from the date of purchase. The City has complied with its investment policy
throughout the year. The City’s investments are recorded at fair value.
The AMLIP is an external investment pool. Alaska Statute 37.23 establishes regulatory oversight of the
Pool. The law sets forth numerous requirements regarding authorized investments and reporting. On a
monthly basis the investments in the Pool are reviewed for fair value by an independent pricing service.
The values of investments in the AML Pool are approximately equal to fair value.
Reconciliation of Cash and Investment Balances
The following is a reconciliation of the City’s cash and investment balances to the financial statements as
of December 31, 2024:
Government-Wide
Statement of Net
Position
Cash and investments $ 56,620,979
Restricted cash and investments 8,812,531
Total Cash and Investments
$ 65,433,510
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
38
As of December 31, 2024, the City had the following investments:
Investment Maturities (in Years)
Investment
Fair Value
Less than 1
year
1 to 5 years
Over 5 years
U.S. treasury securities (SLGS) $ 23,718,529 7,142,109 16,576,420 -
U.S. government bonds 4,306,874 1,329,226 2,977,648 -
Total Subject to Interest Rate Risk 28,025,403 8,471,335 19,554,068 -
Carried at Amortized Cost
Pooled investments / AMLIP 12,583,773
Certificates of deposit 3,633,345
Money market account 2,452,716
Total Investments 46,695,237
Cash 18,738,273
Total Cash and Investments $ 65,433,510
Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs
are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City’s
investments that are classified as Level 2 are valued using third party pricing models provided by
brokerages. The City has the following recurring fair value measurements as of December 31, 2024:
Total Level 1 Level 2 Level 3
Investments by fair value level:
U.S. treasury securities (SLGS) $ 23,718,529 - 23,718,529 -
U.S. government bonds 4,306,874 - 4,306,874 -
Total investments at fair value 28,025,403 - 28,025,403 -
Investments measured at
amortized cost:
Pooled investments / AMLIP 12,583,773
Certificates of deposit 3,633,345
Money market account 2,452,716
Total investments at
amortized cost
18,669,834
Total Investments $ 46,695,237
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
39
Restricted Cash and Investments
The City maintains bond redemption and reserve accounts as required by bond covenants. The balances
at December 31, 2024 are as follows:
Electric Enterprise Fund $ 944,990
Harbor Enterprise Fund 442,898
Healthcare Facilities Enterprise Fund 1,392,950
Total Restricted for Bond Retirement
$ 2,780,838
The City also includes in restricted cash and investments amounts that have been designated for capital
projects. The total amount of restricted cash and investments that has been designated for capital
projects follows:
Electric Enterprise Fund $ 1,955,112
Harbor Enterprise Fund 4,076,581
Total Restricted for Capital Projects
$ 6,031,693
Custodial Credit Risk
The fair value of the City’s investments at year-end is shown above. GASB Statement No. 3, as amended
by GASB Statement 40, establishes categories as an indication of the level of custodial credit risk involved
in the investments. All of the City’s remaining investments are in the category of least risk and include
investments that are insured or registered in the City’s name, or securities that are held by the City or
its agent in the City’s name. All of the United States treasury bills, treasury notes, and United States
agency securities are held in custodial accounts in the U.S. Bank and Bank of New York Trust Departments
and are recorded in the City’s name, in accordance with safekeeping agreements. U.S. Bank and Bank of
New York are not counter parties to security transactions. To limit exposure to custodial credit risk, City
policy requires that all deposits and investments be fully insured or collateralized. As of December 31,
2024, $629,000 of the Healthcare Facilities Enterprise Fund cash balance attributable to PSMCC was
subject to custodial credit risk.
Interest Rate Risk
The fair value of the City’s fixed-income investments fluctuate in response to changes in market interest
rates. Increases in prevailing interest rates generally translate into decreases in fair value of those
investments. Fair value of interest rate-sensitive instruments may be affected by the creditworthiness of
the issuer, prepayment options, relative values of alternative investments, the liquidity of the
instrument, and other general market conditions. The City manages interest rate risk by allocating
specific percentages of the portfolio over specified time periods, and generally holds investments for less
than five years, which minimizes the sensitivity of fair value to changes in market interest rates. The City
has no formal policy relating to a specific deposit or interest rate risk.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
40
Option Risk
Option risk is the risk that an investment’s counterparty may exercise a right embedded in the investment
– an embedded option. The City invests in securities issued by U.S. government agencies that contain call
provisions. The exercise of the call option by the counterparty occurs during times of declining interest
rates; therefore, the City is exposed to the risk of having to reinvest at a lower interest rate. In the table
above, securities are categorized according to the final maturity, regardless of call option dates. If call
options were exercised at the next possible call date, many of the callable securities would mature in less
than one year.
Concentration of Credit Risk
The City’s investment policy places no limit on the amount that can be invested in any one issuer. No
single holding comprised 5% or more of the portfolio total at December 31, 2024.
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder
of the investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. All of the U.S. Treasuries (SLGS) and Bond investments are rated AAA by Standard and
Poor’s. AMLIP investments are rated AAAm.
At December 31, 2024, the City’s investments in U.S. Treasuries (SLGS) and Bond investments implicitly
guaranteed by the U.S. Government were rated AAA.
The City’s investment policy specifies the types of investments that can be purchased in order to limit
credit risk. The City may invest in obligations of the United States government, its agencies and
instrumentalities; insured or collateralized certificates of deposit; savings accounts; collateralized
repurchase agreements; commercial paper maturing within nine months issued by corporations having the
highest rating of a national rating agency; bankers’ acceptances; and the State investment pool. Credit
risk is mitigated by limiting the eligible investment options.
(The remainder of this page intentionally left blank.)
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
41
4. Receivables
Aggregate receivables including applicable allowances for doubtful accounts, are as follows:
Governmental Funds Enterprise Funds
Total
General Nonmajor Governmental
Fund Funds Funds Electric Harbor
Receivables:
Taxes $ 884,856 - 884,856 - -
Accounts 197,256 500,000 697,256 2,404,630 353,229
Grants 40,000 81,302 121,302 - 527,983
Accrued interest 146,925 - 146,925 - -
Leases 402,470 - 402,470 - 4,218,836
Other - - - 66,677 273
Gross receivables 1,671,507 581,302 2,252,809 2,471,307 5,100,321
Less: allowance for doubtful accounts - - - (108,208) (116,112)
Net receivables $ 1,671,507 581,302 2,252,809 2,363,099 4,984,209
Internal
Enterprise Funds Service Fund
Nonmajor Total Total
Healthcare Enterprise Enterprise Primary
SMIC Facilities Funds Funds Motor Pool Government
Receivables:
Taxes $ - - - - - 884,856
Accounts 139,425 14,533,000 411,157 17,841,441 - 18,538,697
Grants - - - 527,983 - 649,285
Accrued interest - - 4,345 4,345 - 151,270
Leases 1,959,675 - - 6,178,511 - 6,580,981
Other - 1,503,000 2,125 1,572,075 18,346 1,590,421
Gross receivables 2,099,100 16,036,000 417,627 26,124,355 18,346 28,395,510
Less: allowance for doubtful accounts - (2,185,000) (18,502) (2,427,822) - (2,427,822)
Net receivables $ 2,099,100 13,851,000 399,125 23,696,533 18,346 25,967,688
5. Leases
Leases receivable
The City is the lessor on several multiple year lease agreements with third parties for various nonfinancial
assets. The lengths of the lease terms vary, and the City used their estimated incremental borrowing rate
of 5% when there was no stated interest rate in the lease contracts. The City recognized $553,839 in lease
revenue and $340,938 in interest revenue for the fiscal year ended December 31, 2024. As of December
31, 2024, the City’s receivables for lease payments were $6,580,981. The City also recognized deferred
inflows of resources associated with lessor agreements of $6,340,106 at December 31, 2024, that will be
recognized as revenue over the remaining lives of the various lease terms.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
42
6. Capital Assets
Capital asset activity for the year ended December 31, 2024 was as follows:
Balance Balance
January 1, Additions and Deletions and December 31,
Governmental Activities 2024 Reclassifications Reclassifications 2024
Capital assets not being depreciated:
Land and land improvements $ 5,509,589 - - 5,509,589
Construction in progress 1,625,430 1,017,337 - 2,642,767
Total assets not being
depreciated 7,135,019 1,017,337 - 8,152,356
Capital assets being depreciated:
Buildings 72,647,984 48,446 - 72,696,430
Infrastructure 10,283,575 - - 10,283,575
Improvements other than buildings 19,050,373 - - 19,050,373
Machinery and equipment 10,963,023 505,883 (83,624) 11,385,282
Total assets being depreciated 112,944,955 554,329 (83,624) 113,415,660
Less accumulated depreciation for:
Buildings 39,487,668 1,743,077 - 41,230,745
Infrastructure 5,483,742 349,907 - 5,833,649
Improvements other than buildings 14,063,274 205,867 - 14,269,141
Machinery and equipment 9,602,966 250,338 (83,624) 9,769,680
Total accumulated depreciation 68,637,650 2,549,189 (83,624) 71,103,215
Total capital assets being
depreciated 44,307,305 (1,994,860) - 42,312,445
Governmental Activities Capital
Assets, net $ 51,442,324 (977,523) - 50,464,801
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City of Seward, Alaska
Notes to Basic Financial Statements, Continued
43
Balance Balance
January 1, Additions and Deletions and December 31,
Business-type Activities 2024 Reclassifications Reclassifications 2024
Capital assets not being depreciated
and amortized:
Land and land improvements $ 30,703,256 - - 30,703,256
Construction in progress 5,604,256 3,149,955 (308,539) 8,445,672
Total assets not being
depreciated and amortized 36,307,512 3,149,955 (308,539) 39,148,928
Capital assets being depreciated:
and amortized:
Buildings and improvements 38,061,267 398,918 - 38,460,185
Infrastructure 67,269,570 308,539 - 67,578,109
Improvements other than buildings 140,189,499 - - 140,189,499
Machinery and equipment 33,998,356 1,860,187 (301,465) 35,557,078
Total assets being depreciated
and amortized:
279,518,692
2,567,644
(301,465)
281,784,871
Less accumulated depreciation and
amortization for:
Buildings and improvements 25,074,221 1,021,558 - 26,095,779
Infrastructure 11,338,521 2,597,289 - 13,935,810
Improvements other than buildings 115,789,443 3,123,834 - 118,913,277
Machinery and equipment 25,315,082 1,387,338 (293,089) 26,409,331
Total accumulated depreciation
and amortization
177,517,267 8,130,019 (293,089) 185,354,197
Total capital assets being
depreciated and amortized 102,001,425 (5,562,375) (8,376) 96,430,674
Business-type Activities Capital
Assets, net* $ 138,308,937 (2,412,420) (316,915) 135,579,602
* The ending balances include $11,232,594 and $7,581,471 of equipment cost and accumulated
depreciation and amortization, respectively, related to the Motor Pool Internal Service Fund.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
44
Depreciation and amortization for the year ended December 31, 2024 was charged to the functions as
follows:
Governmental Activities
General government $ 79,609
Public safety 248,934
Public works 586,975
Parks and recreation 71,546
Library 246,735
Clinic 10,917
Alaska Sealife Center 1,304,473
Total Governmental Activities $ 2,549,189
Business-type Activities
Electric $ 1,880,243
Harbor 1,770,059
SMIC 1,654,951
Healthcare facilities 1,520,714
Water 402,312
Wastewater 351,844
Parking 34,999
In addition, depreciation on capital
assets held by the City’s Motor Pool
internal service fund is charged to
the various functions based on
their usage of the assets. 514,897
Total Business-type Activities $ 8,130,019
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City of Seward, Alaska
Notes to Basic Financial Statements, Continued
45
7. Interfund Receivables, Payables, and Transfers
A schedule of interfund balances and transfers as of and for the year ended December 31, 2024, follows.
Interfund balances typically result from short-term operating or capital advances. Transfers typically
result from capital matching, operating subsidies, and payment in lieu of taxes.
Transfers
From General Fund to:
Healthcare Facilities Enterprise Fund
$ 2,031,082
Nonmajor Governmental Funds 2,510,974
Total transfers from General Fund 4,542,056
From Electric Enterprise Fund to:
General Fund 1,992,000
From Harbor Enterprise Fund to:
General Fund 580,700
Nonmajor Governmental Funds 221,460
From SMIC Enterprise Fund to:
General Fund 171,692
From Nonmajor Enterprise Funds to:
General Fund 268,953
From Nonmajor Governmental Funds to:
Nonmajor Governmental Funds 350,000
Total Transfers From Other Funds $ 3,584,805
The City has the following outstanding interfund loans:
In 2020, the Motor Pool Internal Service Fund issued an interfund loan in the amount of $565,268 to the
Healthcare Facilities Enterprise Fund for the purpose of paying the Seward General Hospital PERS
unfunded pension liability. Repayment is scheduled over seven years bearing interest at 5.25%. At
December 31, 2024 the outstanding balance of the loan is $182,647 of which $88,988 is presented as
current. At December 31, 2024, $9,589 of interest has been accrued on this loan.
In 2022, the Motor Pool Internal Service Fund issued an interfund loan in the amount of $930,500 to the
Animal Shelter Capital Project Fund for the purpose of financing construction of the new animal shelter.
In 2024 the Animal Shelter Capital Project Fund was closed, and the loan liability was transferred to the
General Fund. Repayment is scheduled over 30 years and is an interest free loan. At December 31, 2024
the outstanding balance of the loan was $837,450, of which $31,017 is presented as current.
In 2022, the Parking Enterprise Fund issued an interfund loan in the amount of $733,212 to the Harbor
Enterprise Fund to finance construction of the North East Harbor Launch Ramp and is scheduled to be
repaid over ten years bearing interest at 2.5%. At December 31, 2024 the outstanding balance of the
loan was $526,644, of which $69,778 is presented as current.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
46
8. Long-term Liabilities
The following is a summary of long-term liability transactions of the City for the year ended December
31, 2024:
Balance at Balance at Due
January 1, December 31, Within
Governmental Activities 2024 Additions Retirements 2024 One Year
General obligation bonds -
$2,890,000 2018 General
Obligation bonds, due in
annual installments of
$110,000 to $200,000,
plus interest at 2.5% to
5.0% through May 1, 2037
$
2,245,000
-
125,000
2,120,000
130,000
$2,180,000 2021 General
Obligation Refunding
Bond, due in annual
installments of $100,000
to $200,000, plus interest
at 4.0% to 5.0% through
December 1, 2036
1,970,000
-
110,000
1,860,000
115,000
Net pension liability 7,325,040 - 348,796 6,976,244 -
Accrued compensated absences 526,985 501,050 526,985 501,050 130,726
Total Governmental Activities
Long-term Liabilities $ 12,067,025 501,050 1,110,781 11,457,294 375,726
Plus unamortized bond premium 525,250
$ 11,982,544
Liquidation of governmental accrued compensated absences is made by the Compensated Absences
Internal Service Fund. All other debt service payments above are made by the General Fund.
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City of Seward, Alaska
Notes to Basic Financial Statements, Continued
47
Balance at Balance at Due
January 1, December 31, Within
Business-type Activities 2024 Additions Retirements 2024 One Year
Revenue bonds:
$17,135,000 refunding long-term
care facility bonds, due in
annual installments of $870,000
to $1,405,000, plus interest at
2.0% to 5.0% through August 1,
2033
$
12,350,000
-
1,045,000
11,305,000
1,100,000
$5,045,000 refunding electric
revenue bonds, due in annual
installments of $165,000 to
$330,000, plus interest at 2.0%
to 5.0%, through August 1, 2038
3,995,000
-
205,000
3,790,000
220,000
$8,835,000 electric revenue
bonds, due in annual
installments of $150,000 to
$565,000, plus interest at 5.0%,
through December 31, 2052
8,835,000
-
-
8,835,000
150,000
$830,000 2014 A refunding harbor
revenue bonds, due in annual
installments of $65,000 to
$100,000, plus interest at 5.0%,
through April 1, 2025
195,000
-
95,000
100,000
100,000
$2,575,000 2014 B refunding harbor
revenue bonds, due in annual
installments of $210,000 to
$320,000, plus interest at 3.0%
to 5.0%, through April 1, 2026
910,000
-
290,000
620,000
300,000
Notes payable:
$678,740 sewer note payable to
State of Alaska Department of
Environmental Conservation,
due in annual installments of
$36,688 including interest at
1.5% through September 1, 2035
397,842
-
33,372
364,470
31,182
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
48
Balance at Balance at Due
January 1, December 31, Within
Business-type Activities 2024 Additions Retirements 2024 One Year
Notes payable, continued:
$620,047 sewer note payable to
State of Alaska Department of
Environmental Conservation,
due in annual installments of
$35,944 including interest at
1.5% through September 11,
2035
$
392,054
-
33,075
358,979
30,514
$2,652,849 water note payable to
State of Alaska Department of
Environmental Conservation,
due in annual installments of
$156,844 including interest at
1.5% through April 1, 2027
604,538
-
147,776
456,762
149,993
Net pension liabilities 2,189,173 - 120,183 2,068,990 -
Accrued compensated absences 198,799 211,290 198,799 211,290 58,571
Total Business-type Activities
Long-term liabilities $ 30,067,406 211,290 2,168,205 28,110,491 2,140,260
Plus unamortized bond premium 2,300,681
$ 30,411,172
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City of Seward, Alaska
Notes to Basic Financial Statements, Continued
49
Annual debt service requirements to maturity on the bonds and notes follow:
General Obligation Bonds Governmental Activities
Year Ending December 31, Principal Interest Total
2025
$
245,000
165,232
410,232
2026 255,000 152,856 407,856
2027 265,000 139,952 404,952
2028 285,000 127,981 412,981
2029 300,000 116,655 416,655
2030-2034 1,660,000 391,022 2,051,022
2035-2037 970,000 56,707 1,026,707
$
3,980,000
1,150,405
5,130,405
Revenue Bonds
Business-type Activities
Year Ending December 31, Principal Interest Total
2025
$
1,870,000
964,806
2,834,806
2026 1,860,000 866,506 2,726,506
2027 1,570,000 826,106 2,396,106
2028 1,630,000 761,656 2,391,656
2029 1,700,000 694,706 2,394,706
2030-2034 7,850,000 2,646,088 10,496,088
2035-2039 2,605,000 1,710,688 4,315,688
2040-2044 1,735,000 1,226,000 2,961,000
2045-2049 2,215,000 747,250 2,962,250
2050-2052 1,615,000 164,250 1,779,250
24,650,000
10,608,056
35,258,056
Notes Payable
Business- type Activities
Year Ending December 31, Principal Interest Total
2025
$
211,689
17,788
229,477
2026 214,864 14,613 229,477
2027 218,086 11,391 229,477
2028 64,514 8,118 72,632
2029 65,482 7,150 72,632
2030-2034 342,439 20,725 363,164
2035 63,137 1,032 64,169
$
1,180,211
80,817
1,261,028
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
50
9. Revenue Bond Requirements
Pledged Revenues
The enterprise funds have pledged future customer revenues, net of specified operating expenses,
to repay revenue bonds.
Electric Revenue Bonds
The Electric Enterprise Fund has pledged future electric customer revenues, net of specified
operating expenses, to repay Electric Enterprise Fund revenue bonds. Proceeds from the bonds
provided financing for construction and other capital improvements. The bonds are payable solely
from electric customer net revenues and are payable through 2052. The total principal and interest
remaining to be paid on the bonds is $21,375,225. Principal and interest paid for the current year
and total customer net revenues were $781,700 and $4,847,359, respectively.
Harbor Revenue Bonds
The Harbor Enterprise Fund has pledged future harbor customer revenues, net of specified operating
expenses, to repay Harbor Enterprise Fund revenue bonds. Proceeds from the bonds provided
financing for construction and other capital improvements. The bonds are payable solely from
harbor customer net revenues and are payable through 2026. The total principal and interest
remaining to be paid on the bonds is $754,400. Principal and interest paid for the current year and
total customer net revenues were $433,850 and $1,376,216, respectively.
Healthcare Revenue Bonds
The Healthcare Enterprise Fund has pledged future healthcare customer revenues, net of specified
operating expenses, to repay Healthcare Enterprise Fund revenue bonds. Proceeds from the bonds
provided financing for construction and other capital improvements. The bonds are payable solely
from healthcare customer net revenues and are payable through 2033. The total principal and
interest remaining to be paid on the bonds is $13,128,431. Principal and interest paid for the current
year and total customer net revenues were $1,466,007 and $2,919,866, respectively.
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City of Seward, Alaska
Notes to Basic Financial Statements, Continued
51
Revenue Requirements
The Electric and Harbor revenue bonds also require that rates be maintained at a level that will
produce net revenues after certain adjustments, equal to 1.3 and 1.2, respectively, times the
amount required each year to pay the principal and interest. The City met these revenue
requirements for both bonds in 2024. The bond coverage calculations are as follows:
Electric Revenue Bonds
Total revenues, excluding grants $ 17,067,430
Total operating expenses, excluding depreciation (12,208,289)
Available for Debt Service
$
4,859,141
Debt service payments:
Principal
$
205,000
Interest 576,700
Total Debt Service Payments
$
781,700
Debt Coverage
6.22
Harbor Revenue Bonds
Total revenues, excluding grants
$
4,328,551
Total operating expenses, excluding depreciation (2,952,335)
Available for Debt Service
$
1,376,216
Debt service payments:
Principal
$
385,000
Interest 48,850
Total Debt Service Payments
$
433,850
Debt Coverage
3.17
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
52
10. Fund Balances
Fund balances, reported for the major funds and the nonmajor funds in the aggregate on the
governmental funds balance sheet are subject to the following constraints:
General Fund Nonmajor Funds Totals
Nonpendable:
Prepaid items $ 918,117 137,880 1,055,997
Committed:
Working capital 1,500,000 - 1,500,000
Insurance reserves 701,036 - 701,036
Hospital line of credit 500,000 - 500,000
Total committed 2,701,036 - 2,701,036
Assigned:
Capital projects - 4,820,787 4,820,787
Public works - 2,499 2,499
Total assigned - 4,823,286 4,823,286
Unassigned (deficit) 9,806,971 (40,412) 9,766,559
Total Fund Balances $ 13,426,124 4,920,754 18,346,878
Deficits of ($10,128) and ($30,284) exist in the Teen Council Special Revenue Fund and Culvert
Project Capital Project Fund, respectively. It is expected that these deficits will be eliminated
through future revenues or transfers from the General Fund.
11. Employee Retirement Systems and Plans
The City follows Governmental Accounting Standards Board (GASB) Codification P20 , Accounting for
Pensions by State and Local Governmental Employees and GASB Codification P50, Accounting and
Financial Reporting by Employers for Post-employment Benefits Other than Pensions. GASB
Codification P20 and GASB Codification P50 establish uniform standards for the measurement,
recognition, and display of pension and other post-employment benefits other than pensions
(healthcare) expenditures/expense and related liabilities, assets, note disclosure and applicable
required supplementary information in the financial reports of state and local governmental
employers.
All full-time employees and certain permanent part-time employees of the City participate in the
State of Alaska Public Employees’ Retirement System (PERS). In addition to the pension plan, PERS
also administers other post-employment benefit (OPEB) plans.
The system is governed by the Alaska Retirement Management Board. The benefit and contribution
provisions are established by State law and may be amended only by the State legislature. The
Administrator of the Plan is the Commissioner of Administration or the Commissioner’s designee.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
53
Summary of Significant Accounting Policies. The financial statements for PERS are prepared using
the accrual basis of accounting. Plan member contributions are recognized in the period in which
the contributions are due. The City’s contributions are recognized when due and a formal
commitment to provide the contributions has been made. Benefits and refunds are recognized when
due and payable in accordance with the terms of the plan. All plan investments are reported at fair
value.
PERS acts as the common investment and administrative agencies for the following multiple-
employer plans:
Plan Name Type of Plan
Defined Benefit Pension Plan (DB) Cost-sharing, Defined Benefit Pension
Defined Contribution Pension Plan (DC) Defined Contribution Pension
Defined Benefit Other Postemployment
Benefits (OPEB):
Occupational Death and Disability Plan Cost-sharing, Defined Benefit OPEB
Alaska Retiree Healthcare Trust Plan Cost-sharing, Defined Benefit OPEB
Retiree Medical Plan Cost-sharing, Defined Benefit OPEB
Defined Contribution Other Postemployment
Benefits (DC):
Healthcare Reimbursement Arrangement
Plan
Defined Contribution OPEB
Plan Memberships
The table below includes the plan membership counts from the separately issued financial
statements for the various plans:
PERS
Retired plan members or beneficiaries
currently receiving benefits 36,198
Inactive plan members entitled to but
not yet receiving benefits 4,516
Inactive plan members not entitled to
benefits
9,790
Active plan members 7,963
Total plan memberships 58,467
Other Postemployment Benefit Plans (OPEB)
Occupational Death and Disability Plan (ODD)
The Occupational Death and Disability Plan provides death benefits for beneficiaries of plan
participants and long-term disability benefits to all active members within the System. For the year
ended June 30, 2025 (latest available information) the employer contribution rate is 0.69% for peace
officers and firefighters and 0.24% for all other members.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
54
Alaska Retiree Healthcare Trust Plan (ARHCT)
Beginning July 1, 2007, the Alaska Retiree Healthcare Trust Plan (ARHCT), a Healthcare Trust Fund
of the State, was established. The ARHCT is self-funded and provides major medical coverage to
retirees of the System. The System retains the risk of loss of allowable claims for eligible members.
The ARHCT began paying member healthcare claims on March 1, 2008. Prior to that, healthcare
claims were paid for by the Retiree Health Fund (RHF). For the year ended June 30, 2025 employer
contributions were 0.00% of annual payroll.
Retiree Medical Plan (RMP)
The retiree medical plan provides major medical coverage to retirees of the DC plan. The plan is
self-insured. Members are not eligible to use this plan until they have at least 10 years of service
and are Medicare age eligible. For the year ended June 30, 2025 employer contributions were 0.83%.
Healthcare Reimbursement Arrangement Plan
The Healthcare Reimbursement Arrangement Plan was established to allow medical expenses to be
reimbursed from individual savings accounts established for eligible participants. Employer
contributions are 3.00% of the average annual compensation of all employees in the plan.
Investments
The Board is the investment oversight authority of the system’s investments. As the fiduciary, the
Board has the statutory authority to invest the assets under the Prudent Investor Rule. Fiduciary
responsibility for the Board’s invested assets is pursuant to AS 37.10.210.390.
State of Alaska Department of Treasury provides staff for the Board. Treasury has created a pooled
environment by which it manages investments of the Board. Additionally, Treasury manages a mix
of Pooled Investment Funds and Collective Investment Funds for the DC Participant-directed Pension
plans under the Board’s fiduciary responsibility.
Rate of Return
The money-weighted rate of return expresses investment performance, net of investment expense,
adjusted for the changing amounts actually invested. The annual weighted rate of return, net of
investment expense, for the year ended June 30, 2024 (latest available report) for the DB Plans for
PERS are: DB Pension 8.75%, ARHCT 8.89%, ODD 9.01%, and RMP is 9.02%.
For additional information on securities lending, interest rates, credit risks, foreign exchange,
derivatives, fair value, and counterparty credit risks, see the separately issued report on the Invested
Assets of the State of Alaska Retirement and Benefits Plans at:
http://treasury.dor.alaska.gov/armb/Reports-and-Policies/Annual-Audited-Financial-
Schedules.aspx.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
55
The long-term expected rate of return on pension and OPEB plan investments was determined using
the building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and
adding expected inflation. The best estimates of arithmetic real rates of return for each major asset
class are summarized below for the PERS plan (rates shown below exclude an annual inflation
component of 2.39%):
Long-Term Expected
Asset Class Real Rate of Return
Domestic Equity 5.48%
Global Equity (ex-U.S.) 7.14%
Global Equity 5.79%
Aggregate Bonds 2.10%
Real Assets 4.63%
Private Equity 8.84%
Cash Equivalents 0.77%
Discount Rate: The discount rate used to measure the total pension and OPEB liabilities and assets
is 7.25%. The projection of the cash flows used to determine the discount rate assumes that Employer
and State contributions will continue to follow the current funding policy, which meets State statutes.
Based on those assumptions, the net pension and OPEB plans fiduciary net pension and OPEB liabilities
and assets were projected to be available to make all projected future benefit payments of current
plan members. Therefore, the long-term expected rate of return on pension and OPEB plan
investments were applied to all periods of projected benefit payments to determine the total pension
and OPEB liabilities and assets. In the event benefit payments are not covered by the plan’s fiduciary
net position, a municipal bond rate would be used to discount the benefits not covered by the plan’s
fiduciary net position. The S&P Municipal Bond 20-Year High Grade Index rate was 4.21% as of June
30, 2024.
Employer and Other Contribution Rates. There are several contribution rates associated with the
pension and healthcare contributions and related liabilities. These amounts are calculated on an
annual basis.
Employer Effective Rate: This is the actual employer pay-in rate. Under current legislation, this
rate is statutorily capped at 22% of eligible wages, subject to the salary floor, and other termination
costs as described below. This rate is calculated on all PERS participating wages, including those
wages attributable to employees in the defined benefit plan.
ARM Board Adopted Rate: This is the rate formally adopted by the Alaska Retirement Management
Board. This rate is actuarially determined and used to calculate annual Plan funding requirements,
without regard to the statutory rate cap or the GASB accounting rate. Prior to June 30, 2014, there
were no constraints or restrictions on the actuarial cost method or other assumptions used in the ARM
Board valuation. Starting on June 30, 2014, the State of Alaska requires the ARM Board to adopt
employer contribution rates for past service liabilities using a level percent of pay method over a
closed 25 year term. Effective June 30, 2018, each future year’s unfunded service liability is
separately amortized on a level percent of pay basis over 25 years.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
56
On-behalf Contribution Rate: This is the rate paid in by the State as an on-behalf payment as
mandated under current statute. Under state law, subject to annual appropriation, the state will
contribute an on-behalf payment into the plan in an amount equal to the difference between the
ARM Board Rate and the Employer Effective Rate. On-behalf contribution amounts have been
recognized in these financial statements as both revenue and expenditures.
GASB Rate: This is the rate used to determine the long-term pension and healthcare liability for plan
accounting purposes. Certain actuarial methods and assumptions for this rate calculation are
mandated by the Governmental Accounting Standards Board (GASB). Medicare Part D subsidies are
not reflected in this rate. The rate uses a 7.25% discount rate.
Employer Contribution rates for the plan year ended 2024 are as follows:
ARM
Employer Board State
Effective Adopted Contribution
Rate Rate Rate
PERS:
Pension 22.00% 26.76% 4.76%
OPEB 0.00% 0.00% 0.00%
Total PERS contribution rates 22.00% 26.76% 4.76%
Termination Costs: If the City decides to terminate coverage for a department, group, or other
classification of members, even if that termination results from the decision to divest of a particular
City function, all affected employees in that department, group, or other classification of members
become immediately vested in the plan. The City must pay to have a termination study completed.
The purpose of the study is to calculate the City’s one-time termination costs. The costs represent
the amount necessary to fully fund the costs of plan members who become vested through this process
and for other changes in actuarial assumptions, such as, earlier than expected retirement, that arise
from the act of termination of coverage. The City must pay a lump sum within 60 days of termination
or arrange a payment plan that is acceptable to the PERS Administrator. For plan year ended June
30, 2024 (measurement period) the past service rate for PERS is 17.88%.
Actuarial Assumptions: The total pension and OPEB liabilities on June 30, 2024 (latest available)
were determined by an actuarial valuation as of June 30, 2023 which was rolled forward to the
measurement date June 30, 2024. These actuarial assumptions were based on the results of an
actuarial experience study for the period from July 1, 2017 to June 30, 2021.
Inflation 2.50% per year.
Salary Increases Increases range from 2.85% to 8.50% based on
service.
Investment return / discount rate 7.25%, net of expenses based on average
inflation of 2.50% and a real return of 4.75%.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
57
Mortality Based upon 2017-2021 actual experience study
and applicable tables contained in Pub-2010,
projected with MP-2021 generational
improvement.
Healthcare cost trend rates Pre-65 medical: 6.4% grading down to 4.5%
Post-65 medical: 5.4% grading down to 4.5%
Rx/EGWP: 6.9% grading down to 4.5%.
Initial trend rates are for FY2025
Ultimate trend rates reached in FY2050.
The actuarial assumptions used in the June 30, 2023 actuarial valuation were based on the results of
an actuarial experience study for the period from July 1, 2017 to June 30, 2021. The new demographic
and economic assumptions were adopted by the Board at the June 2022 meeting to better reflect
expected future experience and were effective for the June 30, 2022 actuarial valuation. For the
ARHCT and RM plan, the per capita claims costs were updated to reflect recent experience for the
June 30, 2023 actuarial valuation.
The changes of assumptions from the latest experience study significantly reduced deferred inflows
of resources attributable to the City, as well as a net OPEB benefit recognized by the City for the
State’s proportionate share of OPEB plan expense attributable to the City. In some instances the
reduction of revenues and expenses reported for the State’s proportionate share of OPEB plan
expense attributable to the City creates a net negative Pension/OPEB expense (net pension/OPEB
benefit) which results in negative operating grants and contributions for certain functions reported
on the Statement of Activities.
Alaska Public Employee Retirement System (PERS) – Defined Benefit Plan (DB)
Plan Description. The City participates in the Alaska Public Employees’ Retirement System (PERS), a
cost sharing multiple employer defined benefit pension plan. PERS provides retirement benefits,
disability and death benefits, and post-employment healthcare to plan members and beneficiaries.
The Plan was established and is administered by the State of Alaska, Department of Administration.
The Public Employee’s Retirement System issues a publicly available financial report that includes
financial statements and required supplementary information for PERS. This report may be obtained
from the system at Pouch C, Juneau, Alaska 99811 or online at: http://doa.alaska.gov/drb/pers.
Pension Benefits. All tier employee benefits vest with five years of credited service. There are three
tiers of employees based on entry date. Tier I employees enrolled prior to July 1, 1986, with five or
more years of credited service are entitled to annual pension benefits beginning at normal retirement
age 55 or early retirement age 50. For Tier II and III employees enrolled after June 30, 1986, but
before July 1, 2006, the normal and early retirement ages are 60 and 55, respectively. All tier
employees with 30 or more years of credited service may retire at any age and receive a normal
benefit.
The PERS defined benefit plan is closed to new hires enrolled on or after July 1, 2006. New hires
after this date participate in the PERS defined contribution plan (DC) described later in these notes.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
58
Currently there are 150 employers participating in PERS defined benefit plan and 151 participating in
PERS defined contribution and OPEB plans.
Retirement benefits are calculated by multiplying the average monthly compensation (AMC) times
credited PERS service times the percentage multiplier. The AMC is determined by averaging the
salaries earned during the five highest (three highest for peace officers/firefighters members or
members hired prior to July 1, 1996) consecutive payroll years. Members must earn at least 115 days
of credit in the last year worked to include it in the AMC calculation. The PERS pays a minimum
benefit of $25 per month for each year of service when the calculated benefit is less.
The percentage multipliers for peace officers/firefighters are 2% for the first ten years of service and
2.5% for all service over 10 years. The percentage multipliers for all other participants are 2% for the
first ten years, 2.25% for the next ten years, and 2.5% for all remaining service earned on or after
July 1, 1986. All service before that date is calculated at 2%.
Post-employment healthcare benefits are provided without cost to all members first enrolled before
July 1, 1986. Members first enrolled after June 30, 1986, but before July 1, 2006, and who have not
reached age 60 may elect to pay for major medical benefits.
Post Retirement Pension Adjustments. The plan has two types of postretirement pension adjustments
(PRPA). The automatic PRPA is issued annually to all eligible benefit recipients, when the cost of
living increases in the previous calendar year. The discretionary PRPA may be granted to eligible
recipients by the DB Plan’s administrator if the funding ratio of the DB Plan meets or exceeds 105%.
If both an automatic and discretionary PRPA are granted, the retiree is eligible for both adjustments,
the one that provides the retiree with the greatest benefit will be paid.
Funding Policy. In April 2008 the Alaska Legislature passed legislation which statutorily capped the
employer contribution, established a state funded “on-behalf” contribution, and required that
employer contributions be calculated against all PERS eligible wages, including wages paid to
participants of the PERS Tier IV defined contribution plan (DC) described later in these footnotes.
The state legislature capped the rate at 22%, with the State contributing an on-behalf payment for
the difference between the actuarial contribution and the cap.
Salary Floor. During the 25th legislation session, Senate Bill 125 passed, which established a June 30,
2008 salary floor under AS 39.35.255(a)(2). The salary floor is the total base salaries paid by an
employer to active employees of the system as of the fiscal year ending June 30, 2008. The statute
requires the Division of Retirement and Benefits (Division) to collect employer contributions at a
minimum based on FY 2008 base salaries.
Employee Contribution Rate. PERS active members are required to contribute 6.75%, 7.50% for peace
officers and firefighters, and 9.60% for certain school district employees.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
59
Employer contributions for the year ended December 31, 2024, were:
Pensions
(DB)
Other Post-Employment
Benefits (DB)
Total
$ 909,263 62,414 971,677
Public Employees Retirement Plans
For the year ended December 31, 2024 the State of Alaska contributed $229,945 (100% pension cost)
on-behalf of the City, which has been recorded in the fund financial statements under the modified-
accrual basis of accounting. In the government-wide financial statements the on-behalf contribution
has been adjusted as of the measurement date of June 30, 2024 to a total of $596,821 to represent
the pension/OPEB expense attributable to the State under the full accrual basis of accounting.
Pension and OPEB Liabilities and Assets, Pension and OPEB Expense, and Deferred Outflows of
Resources and Deferred Inflows of Resources Related to Pensions and OPEB: At December 31, 2024,
the City reported liabilities and assets that reflected a reduction for State pension and OPEB support
provided to the City. The amount recognized by the City as its proportionate share of net pension
and OPEB liabilities (assets), the related State support, and the total portion of the net pension and
OPEB liabilities (assets) that were associated with the City were as follows:
Defined Benefit: Pension
City’s proportionate share of the net pension liability $ 9,045,234
State’s proportionate share of the net pension liability 3,382,495
Total $ 12,427,729
OPEB
City’s proportionate share of the ARHCT OPEB liability (asset) $ (3,638,394)
State’s proportionate share of the ARHCT OPEB liability (asset) (1,350,555)
Total $ (4,988,949)
City’s proportionate share of the ODD OPEB liability (asset) $ (162,762)
City’s proportionate share of the RMP OPEB liability (asset) $ (121,836)
Total City’s share of net pension and OPEB liabilities and assets $ 5,122,242
The net pension and OPEB liabilities and assets were determined by an actuarial valuation as of June
30, 2023, rolled forward to the measurement date of June 30, 2024 and adjusted to reflect updated
assumptions. The City’s proportion of the net pension and OPEB liabilities and assets were based on
the present value of contributions for the fiscal years ending 2026 through 2039, as determined by
projections based on the June 30, 2023 valuation.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
60
The City’s proportionate share and changes in the pension and OPEB liabilities and assets were as
follows:
June 30, 2024 June 30, 2023
Measurement Measurement Change
Pension 0.16492% 0.18349% (0.01857%)
OPEB:
ARHCT 0.16522% 0.18300% (0.01778%)
ODD 0.27263% 0.28519% (0.01256%)
RMP 0.26137% 0.27235% (0.01098%)
Based on the measurement date of June 30, 2024, the City recognized pension expense of $1,206,328;
ARHCT OPEB expense of $534,847; ODD OPEB (benefit) of ($6,010); and RMP OPEB expense of $16,001
for a total net OPEB expense of $544,838 for the year ended December 31, 2024. At December 31,
2024, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions and OPEB from the following sources:
Pension
Deferred
Outflows
Deferred
Inflows
Defined Benefit: of Resources of Resources
Differences between expected and actual
experience $ - -
Changes of assumptions - -
Net difference between projected and actual
earnings on pension plan investments 87,074 -
Changes in proportion and differences between
City contributions and proportionate
share of contributions - -
City contributions subsequent to the
measurement date 481,085 -
Total $ 568,159 -
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City of Seward, Alaska
Notes to Basic Financial Statements, Continued
61
OPEB ARHCT
Deferred
Outflows
Deferred
Inflows
of Resources of Resources
Differences between expected and actual
experience $ 1,972 -
Changes of assumptions 97,685 -
Net difference between projected and actual
earnings on OPEB plan investments 55,406 -
Changes in proportion and differences between
City contributions and proportionate
share of contributions 70,508 -
City contributions subsequent to the
measurement date - -
Total $ 225,571 -
OPEB ODD
Deferred
Outflows
Deferred
Inflows
of Resources of Resources
Differences between expected and actual
experience $ - (38,128)
Changes of assumptions - (403)
Net difference between projected and actual
earnings on OPEB plan investments 519 -
Changes in proportion and differences between
City contributions and proportionate
share of contributions 4,215 (5,850)
City contributions subsequent to the
measurement date 8,544 -
Total $ 13,278 (44,381)
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City of Seward, Alaska
Notes to Basic Financial Statements, Continued
62
OPEB RMP
Deferred
Outflows
Deferred
Inflows
of Resources of Resources
Differences between expected and actual
experience $ 3,067 (13,540)
Changes of assumptions 41,228 (81,904)
Net difference between projected and actual
earnings on OPEB plan investments 1,719 -
Changes in proportion and differences between
City contributions and proportionate
share of contributions 3,011 (154)
City contributions subsequent to the
measurement date 23,303 -
Total $ 72,328 (95,598)
$481,085 and $31,847 are reported as deferred outflows of resources related to pension and OPEB
resulting from City contributions subsequent to the measurement date and will be recognized as a
reduction of the net pension liability and as an increase to the net OPEB assets in the year ended
December 31, 2025, respectively. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pension and OPEB will be recognized in pension and OPEB
expense as follows:
Year Ended December 31,
Pension
OPEB
ARHCT
OPEB
ODD
OPEB
RMP
2025 $ (242,428) (34,361) (12,050) (16,401)
2026 451,322 366,975 (6,472) 1,063
2027 (66,621) (58,818) (8,403) (17,201)
2028 (55,199) (48,225) (6,834) (12,036)
2029 - - (4,183) (6,680)
Thereafter - - (1,705) 4,682
Total $ 87,074 225,571 (39,647) (46,573)
For the year ended December 31, 2024, the City recognized ($791,342) and $338,469 of pension and
OPEB amortization of the net deferred outflows and inflows of resources, respectively.
Sensitivity of the Net Pension and OPEB Liabilities and Assets to Changes in the Discount Rate: The
following presents the net pension and OPEB liabilities and assets of the plan calculated using the
discount rate of 7.25%, as well as what the Plans’ net pension and OPEB liabilities and assets would
be if they were calculated using a discount rate that is 1-percentage-point lower (6.25%) or 1-
percentage-point higher (8.25%) than the current rate:
1% Decrease Current Rate 1% Increase
(6.25%) (7.25%) (8.25%)
Net pension liability $ 12,049,103 9,045,234 6,503,241
Net OPEB ARHCT (asset) $ (2,303,775) (3,638,394) (4,761,504)
Net OPEB ODD (asset) $ (152,879) (162,762) (170,508)
Net OPEB RMP liability (asset) $ 21,105 (121,836) (231,090)
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
63
Sensitivity of the City’s proportionate share of the Net OPEB liability and assets to changes in the
healthcare cost trend rates. The following present the City’s proportionate share of the net OPEB
liability (asset), as well as what the City’s proportionate share of the net OPEB liability (asset) would
be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-
percentage-point higher than the current healthcare cost trend rates:
1% Decrease Current Rate 1% Increase
Net OPEB ARHCT (asset) $ (4,889,725) (3,638,394) (2,151,898)
Net OPEB RMP liability (asset) $ (245,510) (121,836) 44,108
Alaska Public Employee Retirement System (PERS) – Defined Contribution Plan (DC)
Plan Description and Funding Requirements. Cities and Public Employers in the State of Alaska have
a defined contribution retirement plan (PERS Tier IV) for new hires first enrolled on or after July 1,
2006. This Plan is administered by the State of Alaska, Department of Administration in conjunction
with the defined benefit plan noted above. The Administrator of the Plan is the Commissioner of
Administration or the Commissioner’s designee. Plan members make mandatory contributions of
6.75% of gross eligible compensation. This amount goes directly to the individual’s account. State
statutes require the employer to contribute 5.00% of employees’ eligible compensation. Additionally,
employers are required to contribute to OPEB (DB): 1.01% for the retiree medical plan (DB), 0.30%
and 0.68% (peace officers) for occupational and death and disability benefits (DB) and 3.00% of
employers’ average annual employee compensation to the health reimbursement arrangement (HRA
DC). The effective employer contribution is capped at 22.00% with anything in excess of the
previously listed rates being contributed to the Defined Benefit Unfunded Liability (DBUL).
Plan members are 100% vested with their contributions.
Members become vested in employers’ contributions as follows:
2 years of service – 25%
3 years of service – 50%
4 years of service – 75%
5 years of service – 100%
The City contributed $407,937 for the year ended December 31, 2024, which included forfeitures of
$29,438 which have been applied as employer contributions.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
64
12. International Brotherhood of Electrical Workers
Defined Benefit Plan
Certain Electric Fund employees are members of the International Brotherhood of Electrical Workers
(IBEW), and participate in a cost-sharing defined benefit plan, the Alaska Electrical Pension Plan of
the Alaska Electrical Pension Fund (IEBW Plan). The Alaska Electrical Pension Trust (AEPT) Board of
Trustees administers the IBEW Plan and has the authority to establish and amend benefit terms and
approve changes in employer required contributions. Each year, AEPT issues annual financial reports
that can be obtained by writing the plan administrator, Alaska Electrical Pension Trust, 2600 Denali
Street, Suite 200, Anchorage, Alaska 99503. The City had seven employees covered by the Plan as of
December 31, 2024.
The IBEW Plan provides several levels of retirement benefits, including early retirement, normal
retirement, late retirement, and disability retirement and includes several options for spouse
participation and death benefits. The City contributes to the IBEW Plan for its covered employees
according to the terms of its Agreement Covering Terms and Conditions of Employment (Agreement)
with the IBEW Local 1547. The current Agreement became effective on July 1, 2022 and expires on
June 30, 2025. The Agreement automatically renews for a period of one year from its expiration
date and for successive periods of one year each thereafter for so long as there is no proper
notification of an intent to negotiate a successor Agreement.
Employer contributions are determined from hours of work reported by participating employers and
the contractual employer contribution rate in effect. The City’s required contribution to the IBEW
Plan for each hour for which compensation is paid to the employee for July 1, 2023 to June 30, 2024
was $9.70 and July 1, 2024 to December 31, 2024 was $10.07. The City’s total employer
contributions to the IBEW Plan for 2024 were $167,115. These amounts are paid during the normal
course of business in the month following each year end. The City is not subject to withdrawal
penalties, nor are there any future minimum payments to the IBEW Plan required other than the
contribution per hour compensated as required by the Agreement.
Defined Contribution Plan - Money Purchase Plan
The Agreement requires employer contributions to be made in an amount of $225 per month for
eligible employees to the Alaska Electrical Workers Money Purchase Plan (Money Purchase Plan).
The City’s employer and employee contributions to the Money Purchase Plan during 2024 were
$16,425 and $64,597, respectively. One hundred percent (100%) of the City’s required contributions
to the IBEW plans have been made through these contributions to the AETF.
13. Deferred Compensation Plan
The City offers its employees a voluntary deferred compensation plan created in accordance with
Internal Revenue Code Section 457. The Plan, available to all employees, permits them to defer a
portion of their salary until future years. The deferred compensation is not available to employees
until termination, retirement, death, or unforeseeable emergency. The provisions of the Plan
require that all assets and income of the Plan be held in trust for the exclusive benefit of
participants and their beneficiaries.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
65
14. Risk Management
The City faces a considerable number of risks of loss, including (a) damage to and loss of property
and contents, (b) employee torts, (c) professional liability; i.e., errors and omissions, (d)
environmental damage, (e) workers’ compensation; i.e., employee injuries, and (f) medical
insurance costs of employees.
The City is a member of the Alaska Municipal League Joint Insurance Association (JIA), a
governmental insurance pool established by the Alaska Municipal League. The JIA provides the City
coverage for property, including building and contents, automobiles, mobile equipment, data
processing equipment and boiler and machinery; casualty, including general liability, public officials
and employees liability, law enforcement professional liability, auto liability and employee benefit
liability; workers’ compensation, including employers liability; and commercial blanket bond. The
City maintains supplemental marine insurance and firefighters group accident coverage with
insurance companies placed through JIA. The City has no coverage for potential losses from
environmental damages.
The JIA is a public entity risk pool organized to share risks among its members. The Association’s
bylaws provide for the assessment of supplemental contributions from members in the event that
losses and expenses for any coverage year exceed the annual contributions and income earned on
such contributions for the year. Such supplemental contributions shall be based on each member’s
deposit contribution in comparison to the aggregate deposit contributions of all members. The
Association made no supplemental assessments during the year ended December 31, 2024.
The JIA provides loss control services and conducts periodic inspections to ensure safe operations.
The City has utilized an established safety committee to review and recommend safety policies and
procedures for all departments. The City Council has committed a portion of the General Fund
balance to meet potential losses not covered by insurance and insurance deductibles.
The City also participates in the Alaska Public Utilities Insurance Trust, which provides insurance
coverage for employee health benefits. The Plan is a public entity risk pool in which risks are shared
among the members. Stop loss insurance limits participants’ liability for individual and aggregate
claims.
There was no significant reduction in the City’s major categories of risk insurance coverage from
the prior year, and the amount of settlements for the past three fiscal years did not materially
exceed the City’s insurance coverage.
15. Commitments and Contingencies
Amounts received or receivable from grantor agencies are subject to audit and adjustment by
grantor agencies, principally the state and federal government. Any disallowed claims, including
any amount already collected, could become a liability of the applicable funds.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
66
The City of Seward is the owner of the Alaska Sealife Center (“Center”), which is operated on the
City’s behalf by the Seward Association for the Advancement of Marine Science (“SAAMS”). The City
is obligated to abide by provisions of the Cooperative Agreement (“Agreement”) between the City
and the State of Alaska Department of Fish and Game, which served as a significant funding source
for the construction of the Center. The City has passed most of its obligations for operating the
Center on to SAAMS through a management and operating agreement (“Operating Agreement”), but
the City ultimately remains responsible to ensure that provisions of the Agreement with the State
are met. The Operating Agreement requires, in part, that SAAMS maintain sufficient termination
fund reserves to enable the City to operate the facility for up to one full year in the event SAAMS is
unable to meet its obligations under the Operating Agreement. The estimated costs of operating
the Center for a full year are not easily measured based on imprecise definitions of the
requirements, but could approach $3 million per year. The Operating Agreement does not require
SAAMS to maintain that level of reserves, and to the extent their termination fund reserve levels
are inadequate, the City would be expected to cover any shortfall. Should the City be required to
cover any shortfall, there could be a material adverse impact on the General Fund undesignated
reserves.
Various other claims and lawsuits against the City are pending, but are either covered by insurance
or are the types which are normal and reasonable in view of the City’s operations. City management
believes the total amount of the liability, if any, which may arise from such claims and lawsuits
beyond that which is covered by insurance would not have a material effect on the City’s financial
condition or its ability to carry on its activities as now conducted.
16. Subsequent Accounting Pronouncements
The Governmental Accounting Standards Board has issued several new accounting principles with
upcoming implementation dates covering several topics as follows:
GASB 102 Certain Risk Disclosures. Effective for fiscal years beginning after June 15,
2024, and all reporting periods thereafter.
GASB 103 Financial Reporting Model Improvements: Effective for fiscal years beginning
after June 15, 2025, and all reporting periods thereafter.
GASB 104 Disclosure of Certain Capital Assets: Effective for fiscal years beginning
after June 15, 2025, and all reporting periods thereafter.
GASB Statement No. 102 will improve financial reporting by providing users of financial statements
with essential information that currently is not often provided. The disclosures will provide users with
timely information regarding certain concentrations or constraints and related events that have
occurred or have begun to occur that make a government vulnerable to a substantial impact. As a
result, users will have better information with which to understand and anticipate certain risks to a
government’s financial condition.
City of Seward, Alaska
Notes to Basic Financial Statements, Continued
67
GASB Statement No. 103 will improve key components of the financial reporting model to enhance its
effectiveness in providing information that is essential for decision making and assessing a
government’s accountability. The changes primarily include updates to three key areas: management's
discussion and analysis, presentation of proprietary fund financial statements, and budgetary
comparison information. This Statement also addresses certain application issues.
GASB Statement No. 104 establishes requirements for certain types of capital assets to be disclosed
separately in the capital assets note disclosures. The Statement also establishes requirements for
capital assets held for sale and requires additional disclosures for those capital assets. Under the
guidance, a capital asset is a capital asset held for sale if: (a) the government has decided to pursue
the sale of the asset, and (b) it is probable the sale will be finalized within a year of the financial
statement date. A government should disclose the historical cost and accumulated depreciation of
capital assets held for sale, by major class of asset.
Required Supplementary Information
Exhibit F-1
Variance with
Year Ended December 31, 2024 Original Final Actual Final Budget
Revenues
Taxes $9,082,500 9,082,500 11,060,685 1,978,185
Licenses and permits 177,400 177,400 187,217 9,817
Intergovernmental 1,548,810 1,026,554 710,102 (316,452)
Charges for services 4,232,386 4,135,086 3,814,739 (320,347)
Fines and bails 16,500 16,500 39,956 23,456
Investment income - 500,000 584,253 84,253
Other 270,580 140,223 383,675 243,452
Total Revenues 15,328,176 15,078,263 16,780,627 1,702,364
Expenditures
Current:
General government 4,912,899 5,164,770 5,314,410 (149,640)
Public safety 5,778,066 5,751,304 5,408,420 342,884
Public works 2,426,092 2,053,539 2,132,292 (78,753)
Parks and recreation 1,799,159 1,904,822 2,140,744 (235,922)
Library 813,974 867,054 846,269 20,785
Debt service:
Principal payments 235,000 235,000 235,000 -
Interest and payments 175,544 175,544 175,544 -
Total Expenditures 16,140,734 16,152,033 16,252,679 (100,646)
Excess of Revenues Over (Under) Expenditures (812,558) (1,073,770) 527,948 1,601,718
Other Financing Sources (Uses)
Transfers in 2,453,558 2,755,546 3,013,345 257,799
Transfers out (1,641,000) (8,574,089) (4,542,056) 4,032,033
Total Other Financing Sources (Uses)812,558 (5,818,543) (1,528,711) 4,289,832
Change in Fund Balance $- (6,892,313) (1,000,763) 5,891,550
Fund Balance, beginning of year 14,426,887
Fund Balance, end of year $13,426,124
See accompanying notes to Required Supplementary Information.
Budgeted Amounts
General Fund
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Original and Final Budget and Actual
City of Seward, Alaska
68
Exhibit G-1
City's
Proportionate
Share of the Plan Fiduciary
City's City's State of Alaska Net Pension Net Position as
Proportion Proportionate Proportionate Liability as a a Percentage
of the Net Share of the Share of the Total City's Percentage of of the Total
Pension Net Pension Net Pension Net Pension Covered Covered Pension
Liability Liability Liability Liability Payroll Payroll Liability
0.1853% $ 8,985,893 $ 2,408,070 $ 11,393,963 $ 5,021,085 179% 63.96%
0.2068% $ 11,558,576 $ 1,457,718 $ 13,016,294 $ 5,098,436 227% 59.55%
0.1565% $ 8,088,553 $ 3,013,251 $ 11,101,804 $ 4,902,901 165% 63.37%
0.1867% $ 9,276,595 $ 2,687,289 $ 11,963,884 $ 5,160,904 180% 65.19%
0.1569% $ 8,586,970 $ 3,409,173 $ 11,996,143 $ 5,123,006 168% 63.42%
0.1512% $ 8,920,386 $ 3,692,619 $ 12,613,005 $ 4,838,355 184% 61.61%
0.1815% $ 6,658,097 $ 901,089 $ 7,559,186 $ 5,588,777 119% 76.46%
0.1803% $ 9,188,990 $ 2,542,744 $ 11,731,734 $ 5,779,823 159% 67.97%
0.1835% $ 9,514,213 $ 3,172,870 $ 12,687,083 $ 6,251,500 152% 68.23%
0.1649% $ 9,045,234 $ 3,382,495 $ 12,427,729 $ 6,282,423 144% 67.81%
See accompanying notes to Required Supplementary Information.
2020
2015
2016
2017
2018
2019
City of Seward, Alaska
Schedule of the City's Proportionate Share of the Net Pension Liability
Public Employees' Retirement System (PERS)
December 31, 2024
Year
2021
2022
2023
2024
69
Exhibit G-2
City's
Proportionate Plan Fiduciary
City's City's State of Alaska Share of the Net Position as
Proportion Proportionate Proportionate Net OPEB a Percentage
of the Net Share of the Share of the Total Liability as a of the Total
OPEB Net OPEB Net OPEB Net OPEB City's Percentage of OPEB
Liability Liability Liability Liability Covered Covered Liability
(Asset) (Asset) (Asset) (Asset) Payroll Payroll (Asset)
Alaska Retiree Healthcare Trust Plan (ARHCT):
0.1565% $ 1,321,817 $ 492,356 $ 1,814,173 $ 4,902,901 26.96% 89.68%
0.1866% $ 1,915,028 $ 556,157 $ 2,471,185 $ 5,160,904 37.11% 88.12%
0.1569% $ 232,830 $ 92,538 $ 325,368 $ 5,123,006 4.54% 98.13%
0.1511% $ (684,490) $ (283,697) $ (968,187) $ 4,838,355 -14.15% 106.15%
0.1824% $ (4,678,439) $ (610,964) $ (5,289,403) $ 5,588,777 -83.71% 135.54%
0.1789% $ (3,520,248) $ (1,007,644) $ (4,527,892) $ 5,779,823 -60.91% 128.51%
0.1830% $ (4,211,539) $ (1,414,184) $ (5,625,723) $ 6,251,500 -67.37% 133.96%
0.1652% $ (3,638,394) $ (1,350,555) $ (4,988,949) $ 6,282,423 -57.91% 130.59%
Occupational Death and Disability (ODD):
0.2280% $ (32,352) $ - $ (32,352) $ 4,902,901 -0.66% 212.97%
0.2258% $ (43,856) $ - $ (43,856) $ 5,160,904 -0.85% 270.62%
0.2477% $ (60,055) $ - $ (60,055) $ 5,123,006 -1.17% 297.43%
0.2547% $ (69,440) $ - $ (69,440) $ 4,838,355 -1.44% 283.81%
0.2561% $ (112,865) $ - $ (112,865) $ 5,588,777 -2.02% 374.22%
0.2850% $ (124,946) $ - $ (124,946) $ 5,779,823 -2.16% 348.80%
0.2852% $ (146,314) $ - $ (146,314) $ 6,251,500 -2.34% 349.24%
0.2726% $ (162,762) $ - $ (162,762) $ 6,282,423 -2.59% 346.81%
Retiree Medical Plan (RMP):
0.2280% $ 11,890 $ - $ 11,890 $ 1,703,098 0.70% 93.98%
0.2258% $ 28,734 $ - $ 28,734 $ 1,690,592 1.70% 88.71%
0.2275% $ 54,424 $ - $ 54,424 $ 1,306,356 4.17% 83.17%
0.2385% $ 16,914 $ - $ 16,914 $ 1,370,400 1.23% 95.23%
0.2416% $ (64,842) $ - $ (64,842) $ 1,489,300 -4.35% 115.10%
0.2693% $ (93,540) $ - $ (93,540) $ 1,610,791 -5.81% 120.08%
0.2724% $ (129,320) $ - $ (129,320) $ 6,251,500 -2.07% 124.29%
0.2614% $ (121,836) $ - $ (121,836) $ 6,282,423 -1.94% 119.87%
See accompanying notes to Required Supplementary Information.
2024
2024
2024
2018
2019
2018
2019
2020
2023
2017
2017
2022
2021
2023
2022
City of Seward, Alaska
Schedule of the City's Proportionate Share of the Net OPEB Liability (Asset)
Public Employees' Retirement System (PERS)
December 31, 2024
Year
2020
2021
2021
2023
2017
2019
2018
2020
2022
70
Exhibit G-3
Contributions
Relative to the Contributions
Contractually Contractually Contribution City's as a Percentage
Required Required Deficiency Covered of Covered
Contribution Contribution (Excess)Payroll Payroll
$485,647 $(485,647) $- $5,098,436 9.53%
$541,407 $(541,407) $- $4,902,901 11.04%
$645,662 $(645,662) $- $5,160,904 12.51%
$644,586 $(644,586) $- $5,123,006 12.58%
$550,925 $(547,855) $3,070 $4,838,355 11.39%
$567,373 $(570,443) $(3,070) $4,894,286 11.59%
$703,865 $(716,692) $(12,827) $5,522,664 12.75%
$857,967 $(850,713) $7,254 $6,158,904 13.93%
$951,820 $(948,923) $2,897 $6,379,377 14.92%
$911,801 $(909,263) $2,538 $6,270,973 14.54%
See accompanying notes to Required Supplementary Information.
2024
2023
2022
City of Seward, Alaska
Schedule of the City's Contributions (Pension)
Public Employees' Retirement System (PERS)
December 31, 2024
Year
2020
2021
2015
2016
2017
2018
2019
71
Exhibit G-4
Contributions
Relative to the Contributions
Contractually Contractually Contribution City's as a Percentage
Required Required Deficiency Covered of Covered
Contribution Contribution (Excess) Payroll Payroll
Alaska Retiree Healthcare Trust Plan (ARHCT):
$ 285,897 $ (285,897) $ - $ 5,160,904 5.54%
$ 207,098 $ (207,098) $ - $ 5,123,006 4.04%
$ 209,371 $ (209,371) $ - $ 4,838,355 4.33%
$ 163,155 $ (163,155) $ - $ 4,894,286 3.33%
$ 110,629 $ (110,629) $ - $ 5,522,664 2.00%
$ 47,816 $ (47,816) $ - $ 6,158,904 0.78%
$ - $ - $ - $ 6,379,377 0.00%
$ - $ - $ - $ 6,270,973 0.00%
Occupational Death and Disability (ODD):
$ 5,285 $ (5,285) $ - $ 5,160,904 0.10%
$ 7,742 $ (7,742) $ - $ 5,123,006 0.15%
$ 10,726 $ (10,726) $ - $ 4,838,355 0.22%
$ 12,097 $ (12,097) $ - $ 4,894,286 0.25%
$ 14,889 $ (14,889) $ - $ 5,522,664 0.27%
$ 17,905 $ (17,905) $ - $ 6,158,904 0.29%
$ 18,199 $ (18,199) $ - $ 6,379,377 0.29%
$ 16,632 $ (16,632) $ - $ 6,270,973 0.27%
Retiree Medical Plan (RMP):
$ 26,831 $ (26,831) $ - $ 1,703,098 1.58%
$ 26,770 $ (26,770) $ - $ 1,690,592 1.58%
$ 34,650 $ (34,650) $ - $ 1,306,356 2.65%
$ 42,569 $ (42,569) $ - $ 1,370,400 3.11%
$ 45,130 $ (45,130) $ - $ 1,489,300 3.03%
$ 50,710 $ (50,710) $ - $ 1,762,795 2.88%
$ 50,173 $ (50,173) $ - $ 1,755,309 2.86%
$ 45,782 $ (45,782) $ - $ 1,854,259 2.47%
See accompanying notes to Required Supplementary Information.
2024
2021
2018
2019
2019
2018
2019
2022
2020
2021
2021
2024
2024
2023
2017
2022
City of Seward, Alaska
Schedule of the City's Contributions (OPEB)
Public Employees' Retirement System (PERS)
December 31, 2024
Year
2017
2017
2023
2023
2022
2018
2020
2020
72
Exhibit G-5
Contributions
Relative to the Contributions
Contractually Contractually Contribution City's as a Percentage
Required Required Deficiency Covered of Covered
Contribution Contribution (Excess)Payroll Payroll
$81,964 $(81,964) $- $668,257 12.27%
$102,429 $(102,429) $- $752,587 13.61%
$129,627 $(129,627) $- $790,348 16.40%
$103,547 $(103,547) $- $958,591 10.80%
$113,631 $(113,631) $- $862,937 13.17%
$133,453 $(133,453) $- $865,034 15.43%
$127,768 $(127,768) $- $921,477 13.87%
$152,357 $(152,357) $- $992,737 15.35%
$163,535 $(163,535) $- $1,173,382 13.94%
$167,115 $(167,115) $- $1,140,605 14.65%
See accompanying notes to Required Supplementary Information.
2024
2016
2017
2018
2019
2015
2020
2021
2022
2023
City of Seward, Alaska
Schedule of the City's Contributions (Pension)
International Brotherhood of Electrical Workers (IBEW) Defined Benefit Pension Plan
December 31, 2024
Year
73
City of Seward, Alaska
Notes to Required Supplementary Information
December 31, 2024
74
Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in the fund financial statements:
The city manager must submit to the city council by November 15th a proposed operating budget for the next
biennial fiscal year commencing the following January 1. The operating budget includes proposed
expenditures which shall not exceed the expected revenues of the City.
The budget proposal of the city manager shall be reviewed by the council and shall be available for public
inspection in the office of the city clerk. The council shall direct that a public hearing on the biennial budget
proposal shall be held not less than one week before its final adoption. Notice of the public hearing shall be
published in a newspaper by the city clerk at least one week prior to the date of the hearing.
At a regular meeting held not less than ten days prior to the end of the fiscal year, the council shall, by
resolution, adopt a budget for the next two fiscal years and make appropriation of the money needed
therefore. If the council does not adopt a biennial budget prior to the third day preceding the
commencement of the next fiscal year, it shall be held to make an appropriation therefore, without any
further council action.
Amendments to the budget can occur anytime during the fiscal year through the city council or administrative
action. Generally, the following actions are required at the level of the particular change.
o The city council may at any time, amend the budget by passing an appropriating resolution that
amends the original budget.
o Unencumbered appropriation balances may be transferred to any department within the same
fund by the city manager at any time. At the request of the city manager, or on its own initiative,
the council may transfer unencumbered balances from one fund to another.
Appropriations lapse at year end to the extent that they have not been expended for all funds, except Capital
Projects Funds, which lapse at project completion.
Budgets adopted by the city council are in accordance with accounting principles generally accepted in the
United States of America.
The City published a separate 2023-2024 biennial budget document. That document may be obtained from
the City of Seward, City Clerk, 410 Adams Street City Hall Building, Seward, Alaska 99664 or at
www.cityofseward.us.
Excess of Expenditures over Appropriations
The Council approves operating budgets and appropriations of direct costs at the function and department
level. For the year ended December 31, 2024, expenditures exceeded appropriations in the following
functions of the General Fund:
General government $ 149,640
Public works $ 78,753
Parks and recreation $ 235,922
City of Seward, Alaska
Notes to Required Supplementary Information, Continued
75
Public Employees’ Retirement System
Schedule of City’s Proportionate Share of Net Pension and OPEB Liability (Asset)
The table is presented based on the Plan measurement date which is six months prior to fiscal year end for all
years presented.
Changes in Actuarial Assumptions, Methods, and Benefits Since the Prior Valuation
Defined Benefit Pension and Postemployment Healthcare Benefit Plan
a) Changes in Methods Since the Prior Valuation – June 30, 2022 to June 30, 2023
There were no changes in actuarial methods since the prior valuation.
b) Changes in Assumptions Since the Prior Valuation – June 30, 2022 to June 30, 2023
Healthcare claim costs are updated for each valuation. The amounts included in the Normal Cost for the
administrative expenses were updated based on the last two years of actual administrative expenses paid
from plan assets. There were no other changes in actuarial assumptions since the prior valuation.
c) Changes in Benefit Provisions Since the Prior Valuation – June 30, 2022 to June 30, 2023
There were no changes in benefit provisions since the prior valuation.
Defined Contribution Occupational Death and Disability and Retiree Medical Benefits Plans
a) Changes in Methods Since the Prior Valuation – June 30, 2022 to June 30, 2023
There were no changes in the asset or valuation methods since the prior valuation.
b) Changes in Assumptions Since the Prior Valuation – June 30, 2022 to June 30, 2023
Healthcare claim costs are updated for each valuation. The amounts included in the Normal Cost for the
administrative expenses were updated based on the last two years of actual administrative expenses paid
from plan assets. There were no other changes in actuarial assumptions since the prior valuation.
c) Changes in Benefit Provisions Since the Prior Valuation – June 30, 2022 to June 30, 2023
There have been no changes in benefit provisions valued since the prior valuation.
The GASB requires ten years of information be presented. However, until a full ten years of information is
available, the City will present only those years for which information is available.
Schedule of City Contributions (Pension) and (OPEB)
The table valuation date is June 30, 2023 which was rolled forward to June 30, 2024. Actuarially determined
contribution rates are calculated as of June 30th, two years prior to the fiscal year in which contributions are
reported.
Supplementary Information
General Fund
The General Fund is established to account for the revenues and expenditures necessary to carry
out basic governmental activities of the City such as fire and police protection, public works,
recreation, planning, administrative services, etc. Appropriations are made from the General Fund
annually.
Revenue is recorded by source, i.e., taxes, charges for services, intergovernmental. Expenditures
are recorded first by function then by activity and object of expenditures.
Exhibit H-1
Year Ended December 31,
Final
Budget Actual Variance
Revenues
Taxes:
Sales $6,500,000 8,077,227 1,577,227
Property 1,764,000 1,944,128 180,128
Hotel/motel room 725,000 873,682 148,682
Payments in lieu of taxes 90,000 159,913 69,913
Penalties and interest 3,500 5,735 2,235
Total taxes 9,082,500 11,060,685 1,978,185
Licenses and permits:
Building permits 71,000 102,088 31,088
Taxi permits 1,000 1,088 88
Department of Motor Vehicles commissions 80,000 55,209 (24,791)
Animal control licenses 250 165 (85)
Business licenses 22,000 25,498 3,498
Miscellaneous 3,150 3,169 19
Total licenses and permits 177,400 187,217 9,817
Intergovernmental:
Dispatch contracts 88,800 52,800 (36,000)
Raw fish tax 400,000 235,889 (164,111)
Shared fisheries business and landing tax 2,400 2,497 97
Marijuana tax 300 1,900 1,600
Library grants 7,750 8,706 956
Community assistance program - 106,166 106,166
PERS relief program - 177,348 177,348
Other grants 527,304 124,796 (402,508)
Total intergovernmental 1,026,554 710,102 (316,452)
Charges for services:
Administrative 2,186,931 2,188,931 2,000
Rents and leases 115,000 91,624 (23,376)
Copying charges 5,000 4,119 (881)
Work orders 2,261 1,213 (1,048)
Recreation 1,807,063 1,503,491 (303,572)
Library and museum 18,831 25,361 6,530
Total charges for services $4,135,086 3,814,739 (320,347)
(continued)
2024
City of Seward, Alaska
General Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual
76
Exhibit H-1, continued
Year Ended December 31,
Final
Budget Actual Variance
Revenues, continued
Fines and bails $16,500 39,956 23,456
Investment income 500,000 584,253 84,253
Other revenues:
Sale of land, equipment, and gravel 85,193 162,564 77,371
Refuse contract 25,750 29,898 4,148
Interest - 24,334 24,334
Other 29,280 166,879 137,599
Total other 140,223 383,675 243,452
Total Revenues 15,078,263 16,780,627 1,702,364
Expenditures
General government:
Mayor and council:
Salaries 236,671 227,991 8,680
Employee benefits 252,232 261,846 (9,614)
Audit 142,000 140,700 1,300
Purchased services 49,018 11,887 37,131
Supplies and maintenance 51,380 35,495 15,885
Legislative representation 177,500 177,504 (4)
General and administrative 87,077 43,986 43,091
Other 5,000 50,000 (45,000)
Total mayor and council 1,000,878 949,409 51,469
City manager:
Salaries 430,000 418,122 11,878
Employee benefits 246,925 229,588 17,337
Purchased services 32,699 184,126 (151,427)
Supplies and maintenance 11,386 13,037 (1,651)
General and administrative 63,906 43,033 20,873
Total city manager $784,916 887,906 (102,990)
(continued)
2024
General Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual, continued
City of Seward, Alaska
77
Exhibit H-1, continued
Year Ended December 31,
Final
Budget Actual Variance
Expenditures, continued
Management information systems:
Salaries $308,050 310,745 (2,695)
Employee benefits 179,750 198,329 (18,579)
Purchased services 63,659 60,401 3,258
Supplies and maintenance 144,605 205,493 (60,888)
General and administrative 15,158 15,156 2
Total management information systems 711,222 790,124 (78,902)
Finance:
Salaries 600,640 520,493 80,147
Employee benefits 426,710 446,674 (19,964)
Purchased services 229,425 221,989 7,436
Supplies and maintenance 47,605 21,821 25,784
General and administrative 19,462 11,287 8,175
Total finance 1,323,842 1,222,264 101,578
Community development:
Salaries 210,255 184,079 26,176
Employee benefits 166,810 133,562 33,248
Purchased services 208,946 227,314 (18,368)
Supplies and maintenance 12,840 13,642 (802)
General and administrative 12,100 14,324 (2,224)
Total community development 610,951 572,921 38,030
General services:
Salaries 33,185 41,347 (8,162)
Employee benefits 17,349 30,171 (12,822)
Purchased services 156,456 230,370 (73,914)
Supplies and maintenance 9,314 7,698 1,616
General and administrative 5,657 11,436 (5,779)
Total general services 221,961 321,022 (99,061)
Contributions to organizations:
Senior Citizens 80,000 80,000 -
Chamber of Commerce 300,000 300,000 -
Boys and Girls Club 25,000 25,000 -
Alaska Sealife Center 81,000 140,764 (59,764)
Small businesses 25,000 25,000 -
Total contributions to organizations 511,000 570,764 (59,764)
Total general government $5,164,770 5,314,410 (149,640)
(continued)
City of Seward, Alaska
General Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual, continued
2024
78
Exhibit H-1, continued
Year Ended December 31,
Final
Budget Actual Variance
Expenditures, continued
Public safety:
Police:
Salaries $1,663,775 1,563,178 100,597
Employee benefits 1,062,331 911,930 150,401
Purchased services 251,622 227,821 23,801
Supplies and maintenance 164,513 108,368 56,145
General and administrative 90,762 55,051 35,711
Capital outlay 40,000 48,549 (8,549)
Total police 3,273,003 2,914,897 358,106
Jail:
Salaries 18,966 21,010 (2,044)
Employee benefits 3,522 30,052 (26,530)
Purchased services 20,486 19,147 1,339
General and administrative 116 116 -
Total jail 43,090 70,325 (27,235)
Animal control:
Salaries 129,325 137,736 (8,411)
Employee benefits 65,705 76,663 (10,958)
Purchased services 33,955 33,816 139
Supplies and maintenance 27,275 10,372 16,903
General and administrative 6,464 840 5,624
Total animal control 262,724 259,427 3,297
Fire:
Salaries 375,500 382,889 (7,389)
Employee benefits 266,235 309,586 (43,351)
Purchased services 323,279 273,010 50,269
Supplies and maintenance 501,997 521,667 (19,670)
General and administrative 76,161 77,613 (1,452)
Total fire 1,543,172 1,564,765 (21,593)
Volunteer training:
Employee benefits 17,300 10,000 7,300
Purchased services 40,582 35,822 4,760
Supplies and maintenance 73,004 74,591 (1,587)
General and administrative 46,920 45,837 1,083
Total volunteer training $177,806 166,250 11,556
(continued)
City of Seward, Alaska
General Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual, continued
2024
79
Exhibit H-1, continued
Year Ended December 31,
Final
Budget Actual Variance
Expenditures, continued
Public safety, continued:
Emergency preparedness:
Purchased services $10,302 8,678 1,624
Supplies and maintenance 9,800 5,133 4,667
General and administrative 5,572 3,125 2,447
Total emergency preparedness 25,674 16,936 8,738
Building inspection:
Salaries 207,325 203,636 3,689
Employee benefits 180,675 180,209 466
Purchased services 14,801 9,922 4,879
Supplies and maintenance 5,250 3,441 1,809
General and administrative 17,784 18,612 (828)
Total building inspection 425,835 415,820 10,015
Total public safety 5,751,304 5,408,420 342,884
Public works:
Roads and streets:
Salaries 329,700 368,416 (38,716)
Employee benefits 270,615 318,610 (47,995)
Purchased services 194,652 234,054 (39,402)
Supplies and maintenance 296,210 219,400 76,810
General and administrative 143,430 148,419 (4,989)
Capital outlay - 4,916 (4,916)
Total roads and streets 1,234,607 1,293,815 (59,208)
City shop:
Salaries 163,950 130,937 33,013
Employee benefits 89,320 67,593 21,727
Purchased services 102,846 86,514 16,332
Supplies and maintenance 58,892 106,968 (48,076)
General and administrative 11,827 13,195 (1,368)
Total city shop 426,835 405,207 21,628
Municipal building:
Salaries 96,250 106,819 (10,569)
Employee benefits 60,290 87,153 (26,863)
Purchased services 215,136 229,326 (14,190)
Supplies and maintenance 20,421 9,972 10,449
Total municipal building 392,097 433,270 (41,173)
Total public works $2,053,539 2,132,292 (78,753)
(continued)
City of Seward, Alaska
General Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual, continued
2024
80
Exhibit H-1, continued
Year Ended December 31,
Final
Budget Actual Variance
Expenditures, continued
Parks and recreation:
Salaries $573,224 640,754 (67,530)
Employee benefits 353,267 374,814 (21,547)
Purchased services 638,990 752,683 (113,693)
Supplies and maintenance 273,979 292,773 (18,794)
General and administrative 62,862 57,870 4,992
Capital outlay 2,500 21,850 (19,350)
Total parks and recreation 1,904,822 2,140,744 (235,922)
Library:
Salaries 326,740 331,226 (4,486)
Employee benefits 188,300 184,926 3,374
Purchased services 218,789 217,359 1,430
Supplies and maintenance 114,400 94,890 19,510
General and administrative 18,825 17,868 957
Total library 867,054 846,269 20,785
Debt service:
Principal payments 235,000 235,000 -
Interest and other costs 175,544 175,544 -
Total debt service 410,544 410,544 -
Total Expenditures 16,152,033 16,252,679 (100,646)
Excess (deficiency) of revenues
over expenditures (1,073,770) 527,948 1,601,718
Other Financing Sources (Uses)
Transfers in 2,755,546 3,013,345 257,799
Transfers out (8,574,089) (4,542,056) 4,032,033
Total Other Financing Sources (Uses)(5,818,543) (1,528,711) 4,289,832
Change in fund balance $(6,892,313) (1,000,763) 5,891,550
Fund Balance, beginning of year 14,426,887
Fund Balance, end of year $13,426,124
City of Seward, Alaska
General Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual, continued
2024
81
Nonmajor Governmental Funds
Nonmajor Special Revenue Funds
Nonmajor Special Revenue Funds are used to account for expenditures associated with dedicated
or restricted revenue sources.
Teen Council – To account for the funds held by the City on behalf of the local teen council.
Public Education Signage – To account for the costs of installing signage.
SCHC – To account for the costs of running a community health center.
Bus Transportation – To account for city bussing transportation.
Beachfront Erosion – To account for the costs associated with the beachfront erosion.
Nonmajor Capital Project Funds
Nonmajor Capital Project Funds are established to account for the resources expended to acquire
or construct assets of a relatively permanent nature.
Capital Acquisition – To account for purchase of equipment not financed by the Motor Pool
Fund and capital improvements and projects of at least $20,000.
Animal Shelter – To account for all activities related to animal shelter capital costs.
Culvert Project – To account for all capital activities related to culvert replacement.
Street and Sidewalks – To account for all activities related to street and sidewalk capital costs.
Heat Loop - To account for a design grant for a tidal source geothermal heating and colling
system.
Developer Reimbursement – To account for funds to help offset the cost of the development
of a new subdivision in the city
Energy Efficiency – To account for all activities related to energy efficiency capital costs.
ARPA – To account for American Rescue Plan Act funds that have been committed for capital
projects.
Jesse Lee Home – To account for activities related to the preservation of the historic Jesse
Lee Home.
Exhibit I-1
Public Total Special
Teen Education Bus Beachfront Revenue Capital Culvert
December 31, 2024 Council Signage Transportation Erosion Funds Acquisition Project
Assets
Cash and investments $ 6,638 349 - 2,150 9,137 2,155,642 -
Receivables, net of allowance for
doubtful accounts:
Accounts - - - - - 500,000 -
Grants - - - - - - -
Prepaid items - - 137,880 - 137,880 - -
Total Assets $6,638 349 137,880 2,150 147,017 2,655,642 -
Liabilities and Fund Balances
Liabilities
Accounts payable $ 16,766 - - - 16,766 89,369 30,284
Unearned revenue - - - - - - -
Due to other funds - - - - - - -
Total Liabilities 16,766 - - - 16,766 89,369 30,284
Fund Balances
Nonspendable:
Prepaid items - - 137,880 - 137,880 - -
Assigned:
Capital projects - - - - - 2,566,273 -
Public works - 349 - 2,150 2,499 - -
Unassigned (deficit) (10,128) - - - (10,128) - (30,284)
Total Fund Balances (10,128) 349 137,880 2,150 130,251 2,566,273 (30,284)
Total Liabilities and Fund Balances $6,638 349 137,880 2,150 147,017 2,655,642 -
(continued)
City of Seward, Alaska
Other Governmental Funds
Combining Balance Sheet
Capital Project Funds Special Revenue Funds
82
Exhibit I-1, continued
Total Capital Total Other
Street and Heat Developer Energy Jesse Lee Project Governmental
December 31, 2024 Sidewalks Loop Reimbursement Efficiency ARPA Home Funds Funds
Assets
Cash and investments $ 828,615 - 1,342,989 93,785 844,065 48,957 5,314,053 5,323,190
Receivables, net of allowance for
doubtful accounts:
Accounts - - - - - - 500,000 500,000
Grants - 81,302 - - - - 81,302 81,302
Prepaid items - - - - - - - 137,880
Total Assets $828,615 81,302 1,342,989 93,785 844,065 48,957 5,895,355 6,042,372
Liabilities and Fund Balances
Liabilities
Accounts payable $ 20,615 - 39,217 - - - 179,485 196,251
Unearned revenue - - - - 844,065 - 844,065 844,065
Due to other funds - 81,302 - - - - 81,302 81,302
Total Liabilities 20,615 81,302 39,217 - 844,065 - 1,104,852 1,121,618
Fund Balances
Nonspendable:
Prepaid items - - - - - - - 137,880
Assigned:
Capital projects 808,000 - 1,303,772 93,785 - 48,957 4,820,787 4,820,787
Public works - - - - - - - 2,499
Unassigned (deficit) - - - - - - (30,284) (40,412)
Total Fund Balances 808,000 - 1,303,772 93,785 - 48,957 4,790,503 4,920,754
Total Liabilities and Fund Balances $828,615 81,302 1,342,989 93,785 844,065 48,957 5,895,355 6,042,372
Combining Balance Sheet, continued
Other Governmental Funds
City of Seward, Alaska
Capital Project Funds
83
Exhibit I-2
Public Healthy and Total Special
Teen Education Bus Beachfront Equitable Revenue Capital Animal Culvert
Year Ended December 31, 2024 Council Signage Transportation Erosion Communities Funds Acquisition Shelter Project
Revenues
Intergovernmental $ - - - - 14,975 14,975 - - -
Investment income 223 - - - - 223 - - -
Other - - - - - - - - -
Total Revenues 223 - - - 14,975 15,198 - - -
Expenditures
General government - - 290,400 - 14,975 305,375 - - -
Capital outlay - - - - - - 167,416 - 30,284
Total Expenditures - - 290,400 - 14,975 305,375 167,416 - 30,284
Excess (deficiency) of
revenues over expenditures 223 - (290,400) - - (290,177) (167,416) - (30,284)
Other Financing Sources (Uses)
Proceeds from sale of assets - - - - - - 780,000 - -
Transfers in - - 221,460 - - 221,460 1,183,355 831,478 -
Transfers out - - - - - - (350,000) - -
Net Other Financing
Sources (Uses)- - 221,460 - - 221,460 1,613,355 831,478 -
Change in fund balances 223 - (68,940) - - (68,717) 1,445,939 831,478 (30,284)
Fund Balances,
beginning of year (10,351) 349 206,820 2,150 - 198,968 1,120,334 (831,478) -
Fund Balances,
end of year $(10,128) 349 137,880 2,150 - 130,251 2,566,273 - (30,284)
(continued)
Special Revenue Funds Capital Project Funds
City of Seward, Alaska
Other Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
84
Exhibit I-2, continued
Total Total Other
Street and Heat Developer Energy Jesse Lee Capital Project Governmental
Year Ended December 31, 2024 Sidewalks Loop Reimbursement Efficiency ARPA Home Funds Funds
Revenues
Intergovernmental $- 64,745 - - 83,897 - 148,642 163,617
Investment income - - - - - - - 223
Other - 8,057 250,000 - - - 258,057 258,057
Total Revenues - 72,802 250,000 - 83,897 - 406,699 421,897
Expenditures
General government - - - - - - - 305,375
Capital outlay 54,813 81,727 704,839 - 83,897 - 1,122,976 1,122,976
Total Expenditures 54,813 81,727 704,839 - 83,897 - 1,122,976 1,428,351
Excess (deficiency) of
revenues over expenditures (54,813) (8,925) (454,839) - - - (716,277) (1,006,454)
Other Financing Sources (Uses)
Proceeds from sale of assets - - - - - 780,000 780,000
Transfers in 788,259 8,925 - - - 48,957 2,860,974 3,082,434
Transfers out - - - - - - (350,000) (350,000)
Net Other Financing
Sources (Uses)788,259 8,925 - - - 48,957 3,290,974 3,512,434
Change in fund balances 733,446 - (454,839) - - 48,957 2,574,697 2,505,980
Fund Balances,
beginning of year 74,554 - 1,758,611 93,785 - - 2,215,806 2,414,774
Fund Balances,
end of year $808,000 - 1,303,772 93,785 - 48,957 4,790,503 4,920,754
Capital Project Funds
City of Seward, Alaska
Other Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances, continued
85
Nonmajor Enterprise Funds and Internal Service Funds
Nonmajor Enterprise Funds
Nonmajor Enterprise Funds are established to account for the financing and 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.
Water – To account for the provision of water services to the residents of the City.
Wastewater – To account for the provision of sewer services to the residents of the City.
Parking – To account for the provision of public parking services.
Internal Service Funds
Motor Pool – The Motor Pool Internal Service Fund accounts for payments from departments
for the use of vehicles, in order to accumulate cash to forward-fund replacement of vehicles.
This funding mechanism spreads the cost of the vehicles over the expected life of the vehicle
in each program’s annual budget, rather than to show the cost of vehicles as a one-time
expenditure to each fund in the year of purchase.
Compensated Absences – The Compensated Absences Internal Service Fund was created in
2005 for the purpose of accumulated cash reserves to pay compensated absences cash-outs
for governmental funds.
Exhibit J-1
December 31, 2024 Water Wastewater Parking Total
Assets and Deferred Outflows of Resources
Current Assets
Cash and investments $4,000,901 3,916,678 1,282,695 9,200,274
Receivables
Accounts 242,057 169,100 - 411,157
Accrued interest - - 4,345 4,345
Interfund loans - current portion - - 69,778 69,778
Other 1,168 922 35 2,125
Less allowance for doubtful accounts (10,893) (7,609) - (18,502)
Inventory 101,021 - - 101,021
Total Current Assets 4,334,254 4,079,091 1,356,853 9,770,198
Noncurrent Assets
Interfund loans, net of current portion - - 456,866 456,866
Capital assets not being depreciated 768,981 704,639 - 1,473,620
Capital assets being depreciated,
net of depreciation 7,231,629 4,107,842 116,045 11,455,516
Net OPEB assets 126,713 172,121 12,020 310,854
Total Assets 12,461,577 9,063,693 1,941,784 23,467,054
Deferred Outflows of Resources
Related to pensions and OPEB 28,403 38,581 2,694 69,678
Total Assets and Deferred Outflows of Resources $12,489,980 9,102,274 1,944,478 23,536,732
Liabilities, Deferred Inflows of Resources, and Net Position
Current Liabilities
Accounts payable $59,562 90,110 1,071 150,743
Accrued payroll and related liabilities 11,715 18,958 3,209 33,882
Accrued interest 5,234 3,526 - 8,760
Unearned revenue 338,374 338,374 - 676,748
Current portion:
Accrued compensated absences 4,280 5,827 918 11,025
Notes payable 149,993 61,696 - 211,689
Total Current Liabilities 569,158 518,491 5,198 1,092,847
Noncurrent liabilities, net of current portion
Accrued compensated absences 16,334 31,014 5,074 52,422
Notes payable 306,769 661,753 - 968,522
Net pension liabilities 292,161 396,860 27,715 716,736
Total Noncurrent Liabilities 615,264 1,089,627 32,789 1,737,680
Total Liabilities 1,184,422 1,608,118 37,987 2,830,527
Deferred Inflows of Resources
Related to pensions and OPEB 4,521 6,142 429 11,092
Total Liabilities and Deferred Inflows of Resources 1,188,943 1,614,260 38,416 2,841,619
Net Position
Net investment in capital assets 7,543,848 4,089,032 116,045 11,748,925
Unrestricted 3,757,189 3,398,982 1,790,017 8,946,188
Total Net Position 11,301,037 7,488,014 1,906,062 20,695,113
Total Liabilities, Deferred Inflows of
Resources, and Net Position $12,489,980 9,102,274 1,944,478 23,536,732
Nonmajor Enterprise Funds
Combining Statement of Net Position
City of Seward, Alaska
86
Exhibit J-2
Year Ended December 31, 2024 Water Wastewater Parking Total
Operating Revenues - charges for services $1,419,599 1,322,722 460,518 3,202,839
Operating Expenses
Salaries and employee benefits 366,460 560,052 85,125 1,011,637
Purchased services 403,437 373,888 40,322 817,647
Supplies and maintenance 15,571 62,436 12,945 90,952
Administration 302,966 202,971 26,370 532,307
Depreciation 402,312 351,844 34,999 789,155
Total Operating Expenses 1,490,746 1,551,191 199,761 3,241,698
Earnings (loss) from operations (71,147) (228,469) 260,757 (38,859)
Nonoperating Revenues (Expenses)
Intergovernmental - PERS on-behalf 19,277 26,186 1,829 47,292
Investment income 137,767 138,840 38,134 314,741
Interest income - - 14,306 14,306
Interest expense (7,375) (12,704) - (20,079)
(Loss) on disposal of capital assets - - (8,341) (8,341)
Other revenue 36,390 2,447 - 38,837
Total Nonoperating Revenues 186,059 154,769 45,928 386,756
Income (Loss) Before Contributions and Transfers 114,912 (73,700) 306,685 347,897
Transfers out (138,454) (93,588) (36,911) (268,953)
Change in net position (23,542) (167,288) 269,774 78,944
Net Position, beginning of year 11,324,579 7,655,302 1,636,288 20,616,169
Net Position, end of year $
11,301,037 7,488,014 1,906,062 20,695,113
Combining Statement of Revenues, Expenses and Changes in Net Position
Nonmajor Enterprise Funds
City of Seward, Alaska
87
Exhibit J-3
Year Ended December 31, 2024 Water Wastewater Parking Total
Cash Flows from (for) Operating Activities
Receipts from customers and users $1,556,987 1,336,194 460,888 3,354,069
Payments to suppliers (545,813) (468,615) (57,459) (1,071,887)
Payments to employees (371,426) (493,389) (74,585) (939,400)
Payments for interfund services used (299,315) (181,261) (25,760) (506,336)
Net cash flows from operating activities 340,433 192,929 303,084 836,446
Cash Flows (for) Noncapital Financing Activities
Transfers out (138,454) (93,588) (36,911) (268,953)
Cash Flows from (for) Capital Financing Activities
Principal payments on notes payable (147,776) (66,447) - (214,223)
Interest payments on notes payable (9,068) (12,998) - (22,066)
Proceeds from the sale of capital assets - - 35 35
Acquisition of property, plant and equipment (236,848) (296,702) (18,217) (551,767)
Net cash flows (for) capital financing activities (393,692) (376,147) (18,182) (788,021)
Cash Flows from Investing Activities
Interfund loan receipts - - 68,076 68,076
Interfund interest received - - 14,867 14,867
Investment income 137,767 138,840 38,134 314,741
Net cash flows from investing activities 137,767 138,840 121,077 397,684
Net change in cash and investments (53,946) (137,966) 369,068 177,156
Cash and Investments, beginning of year 4,054,847 4,054,644 913,627 9,023,118
Cash and Investments, end of year $
4,000,901 3,916,678 1,282,695 9,200,274
Reconciliation of earnings (loss) from operations to
net cash flows from (for) operating activities:
Earnings (loss) from operations $(71,147) (228,469) 260,757 (38,859)
Adjustments to reconcile earnings (loss) from operations
to net cash flows from (for) operating activities:
Other non-operating revenues 36,390 2,447 - 38,837
Depreciation 402,312 351,844 34,999 789,155
Noncash State PERS relief 19,277 26,186 1,829 47,292
Increase (decrease) in allowance for doubtful accounts (4,795) (563) - (5,358)
(Increase) decrease in assets and deferred outflows of resources:
Receivables 105,793 11,588 370 117,751
Inventory (31,942) - - (31,942)
Net pension and OPEB assets 39,923 6,110 (183) 45,850
Deferred outflows of resources - pension and OPEB 9,840 2,323 23 12,186
Increase (decrease) in liabilities and deferred inflows of resources:
Accounts payable (91,212) (10,581) (3,582) (105,375)
Accrued payroll and related liabilities (893) 7,291 2,326 8,724
Accrued compensated absences (7,192) 9,585 4,158 6,551
Net pension and OPEB liabilities (61,159) 18,955 2,617 (39,587)
Deferred inflows of resources - pension and OPEB (4,762) (3,787) (230) (8,779)
Net cash flows from operating activities $340,433 192,929 303,084 836,446
Nonmajor Enterprise Funds
Combining Statement of Cash Flows
City of Seward, Alaska
88
Exhibit K-1
Motor Compensated
December 31, 2024 Pool Absences Total
Assets and Deferred Outflows of Resources
Current Assets
Cash and investments $1,840,891 501,050 2,341,941
Receivables
Accrued interest 9,589 - 9,589
Other 18,346 - 18,346
Interfund loans - current portion 120,005 - 120,005
Total Current Assets 1,988,831 501,050 2,489,881
Noncurrent Assets
Interfund loans, net of current portion 900,092 - 900,092
Property, plant, and equipment, net
Equipment and vehicles 11,232,594 - 11,232,594
Less accumulated depreciation (7,581,471) - (7,581,471)
Net property, plant, and equipment 3,651,123 - 3,651,123
Total Noncurrent Assets 4,551,215 - 4,551,215
Total Assets $6,540,046 501,050 7,041,096
Liabilities and Net Position
Current Liabilities
Accounts payable $ 35,298 - 35,298
Accrued compensated absences - current portion - 130,726 130,726
Total Current Liabilities 35,298 130,726 166,024
Noncurrent Liabilities
Accrued compensated absences, net of current portion - 370,324 370,324
Total Liabilities 35,298 501,050 536,348
Net Position
Net investment in capital assets 3,651,123 - 3,651,123
Unrestricted 2,853,625 - 2,853,625
Total Net Position 6,504,748 - 6,504,748
Total Liabilities and Net Position $6,540,046 501,050 7,041,096
City of Seward, Alaska
Internal Service Funds
Combining Statement of Net Position
89
Exhibit K-2
Motor Compensated
Year Ended December 31, 2024 Pool Absences Total
Operating Revenues
Vehicle rental and interfund charges $484,000 501,050 985,050
Operating Expenses
Salaries and employee benefits - 501,050 501,050
Supplies and maintenance 13,896 - 13,896
Depreciation 514,897 - 514,897
Total Operating Expenses 528,793 501,050 1,029,843
(Loss) from operations (44,793) - (44,793)
Nonoperating Revenues
Interest income 9,589 - 9,589
Investment income 74,113 - 74,113
Other revenue 18,346 - 18,346
Total Nonoperating Revenues 102,048 - 102,048
Change in net position 57,255 - 57,255
Net Position, beginning of year 6,447,493 - 6,447,493
Net Position, end of year $
6,504,748 - 6,504,748
City of Seward, Alaska
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Net Position
90
Exhibit K-3
Motor Compensated
Year Ended December 31, 2024 Pool Absences Total
Cash Flows from (for) Operating Activities
Receipts from vehicle rentals and interfund charges $485,300 501,050 986,350
Payments to suppliers 21,402 - 21,402
Payments to employees - (526,985) (526,985)
Net cash flows (for) from operating activities 506,702 (25,935) 480,767
Cash Flows (for) Capital Financing Activities
Acquisition of equipment and vehicles (1,277,115) - (1,277,115)
Net cash flows (for) capital and related financing activities (1,277,115) - (1,277,115)
Cash Flows from Investing Activities
Investment income received 74,113 - 74,113
Interfund loan receipts 115,565 - 115,565
Interfund interest received 14,028 - 14,028
Net cash flows from investing activities 203,706 - 203,706
Net change in cash and investments (566,707) (25,935) (592,642)
Cash and Investments, beginning of year 2,407,598 526,985 2,934,583
Cash and Investments, end of year $1,840,891 501,050 2,341,941
Reconciliation of (loss) from operations to
net cash flows from (for) operating activities:
(Loss) from operations $(44,793) - (44,793)
Adjustments to reconcile earnings (loss) from operations
to net cash flows from operating activities:
Depreciation 514,897 - 514,897
(Increase) decrease in assets:
Receivables 1,300 - 1,300
Increase (decrease) in liabilities:
Accounts payable 35,298 - 35,298
Accrued compensated absences - (25,935) (25,935)
Net cash flows from (for) operating activities $506,702 (25,935) 480,767
City of Seward, Alaska
Internal Service Funds
Combining Statement of Cash Flows
91
Contents Page
Financial Trends
Table 1 Net Position by Component 92
Table 2 Changes in Net Position 93-94
Table 3 Fund Balances of Governmental Funds 95
Table 4 Changes in Fund Balances of Governmental Funds 96
Table 5 General Fund Revenues by Source 97
Table 6 General Fund Tax Revenues by Source 98
Revenue Capacity
Table 7 Property Tax Rates 99
Table 8 Property Tax Levies and Collections 100
Table 9 Assessed and Estimated Actual Value of Taxable Property 101
Table 10 Principal Property Taxpayers Compared with Nine Years Ago 102
Table 11 Principal Taxable Sales by Line of Business 103
Debt Capacity
Table 12 Ratios of Outstanding Debt by Type 104
Table 13 Ratio of General Obligation Bonded Debt to Assessed Value and General Obligation
Bonded Debt per Capita 105
Table 14 Computation of Direct and Overlapping Bonded Debt 106
Table 15 Legal Debt Margin 107
Table 16 Revenue Bond Coverage - Electric Enterprise Fund 108
Table 17 Revenue Bond Coverage - Harbor Enterprise Fund 109
Demographic and Economic Information
Table 18 Demographic and Economic Statistics 110
Table 19 Full-Time Equivalent Employees by Fund 111
Table 20 Operating Indicators by Function 112
Table 21 Capital Asset Statistics by Function 113
Table 22 Property Value, Construction, and Bank Deposits 114
Table 23 Miscellaneous Statistics 115
These schedules present information to help the reader assess the affordability of the City's
current level of outstanding debt and the City's ability to issue additional debt
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place.
City of Seward, Alaska
Statistical Section
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
These schedules contain information to help the reader assess the City's most significant local
revenue sources, sales and property tax.
This part of the City of Seward's annual comprehensive financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City's overall financial health.
Table 1
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental Activities
Net investment in capital assets $58,190 57,113 57,141 55,207 50,880 49,807 47,873 47,109 46,570 45,878
Restricted - - - - - - - - - -
Unrestricted 6,278 5,327 5,915 5,886 6,668 6,165 9,903 11,248 13,994 15,421
Total Governmental Activities
Net Position $64,468 62,440 63,056 61,093 57,548 55,972 57,776 58,357 60,564 61,299
Business-type Activities
Net investment in capital assets $91,783 108,513 111,762 113,424 117,621 110,856 108,062 112,122 111,666 110,912
Restricted 1,354 675 1,403 1,761 2,626 2,290 2,036 2,220 2,590 2,769
Unrestricted 17,582 10,576 12,969 16,213 20,572 28,860 38,271 41,136 43,220 45,409
Total Business-type Activities
Net Position $110,719 119,764 126,134 131,398 140,819 142,006 148,369 155,478 157,476 159,090
Primary Government
Net investment in capital assets $149,973 165,626 168,903 168,631 168,501 160,663 155,935 159,231 158,236 156,790
Restricted 1,354 675 1,403 1,761 2,626 2,290 2,036 2,220 2,590 2,769
Unrestricted 23,860 15,903 18,884 22,099 27,240 35,025 48,174 52,384 57,214 60,830
Total Primary Government
Net Position $175,187 182,204 189,190 192,491 198,367 197,978 206,145 213,835 218,040 220,389
City of Seward, Alaska
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
92
Table 2
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Expenses
Governmental activities:
General government $ 3,517,517 3,473,276 1,909,713 2,546,120 2,502,395 1,431,168 2,682,966 2,537,226 3,065,910 3,644,599
Public safety 3,563,666 3,902,294 3,642,114 3,939,768 3,596,487 4,495,915 4,371,314 4,819,285 5,133,558 5,353,134
Public works 1,791,967 2,421,447 2,174,105 1,973,267 1,775,480 6,357,270 3,447,427 3,835,674 2,446,349 2,830,952
Parks and recreation 1,463,364 1,446,971 1,511,469 1,581,736 1,477,450 1,326,003 1,269,771 1,683,508 1,733,775 2,212,119
Library 785,299 806,047 794,077 808,835 802,425 836,239 881,107 927,788 923,686 1,065,248
Clinic 1,682,532 1,846,150 1,660,050 1,637,780 1,654,018 2,496,024 2,121,653 1,928,031 157,173 10,917
** Community support - - - - - 5,081,737 - - - -
Sealife Center 1,457,308 1,355,558 1,465,285 1,556,943 1,398,053 1,400,374 1,396,490 1,313,755 1,306,821 1,304,473
Unallocated interest 153,950 149,966 232,290 251,372 225,493 215,476 171,623 144,521 133,562 123,980
Total governmental activities expenses 14,415,603 15,401,709 13,389,103 14,295,821 13,431,801 23,640,206 16,342,351 17,189,788 14,900,834 16,545,422
Business-type activities:
Electric 10,599,641 11,023,942 12,120,052 11,390,325 11,865,052 11,680,216 12,435,907 13,399,889 13,167,421 14,616,068
Water 1,241,671 1,189,786 1,373,707 1,499,502 1,474,729 1,334,374 1,398,746 1,536,791 1,545,468 1,497,530
Wastewater 1,097,494 1,211,625 1,086,821 1,078,091 1,071,306 1,112,963 1,305,684 1,315,450 1,358,310 1,563,304
Harbor 3,858,440 4,353,766 4,093,848 4,065,082 3,508,574 3,779,722 3,689,010 3,971,031 4,408,596 4,746,171
Seward Marine Industrial Center 1,260,159 1,342,506 1,161,489 1,389,912 1,336,436 1,411,205 2,212,217 2,477,022 2,364,526 2,401,361
Healthcare facilities 19,589,784 19,329,722 21,153,694 21,845,021 22,540,528 22,474,188 24,903,943 26,174,009 27,917,753 28,585,970
Parking 178,886 231,666 227,174 214,637 196,181 83,994 90,237 111,848 153,628 198,223
Total business-type activities expenses 37,826,075 38,683,013 41,216,785 41,482,570 41,992,806 41,876,662 46,035,744 48,986,040 50,915,702 53,608,627
Total Primary Government Expenses $ 52,241,678 54,084,722 54,605,888 55,778,391 55,424,607 65,516,868 62,378,095 66,175,828 65,816,536 70,154,049
Program Revenues
Governmental activities:
Charges for services:
General government $ 294,499 233,945 217,317 411,980 418,449 374,760 637,177 536,378 599,669 642,472
Public safety 817,995 614,253 576,829 589,388 477,448 479,062 490,060 496,511 629,540 92,756
Public works 22,278 27,985 32,359 25,814 27,373 27,373 27,571 29,638 28,699 31,111
Parks and recreation 778,350 913,970 914,318 960,186 1,032,968 676,618 1,500,354 1,484,294 1,416,045 1,503,491
Library 33,762 25,200 25,094 28,644 27,639 4,695 15,000 29,187 20,757 25,361
Clinic 75,085 69,134 60,000 60,000 - - - - - -
Operating grants and contributions 1,156,755 1,402,137 1,100,497 1,418,770 1,415,242 9,443,898 3,166,769 1,840,221 270,756 483,986
Capital grants and contributions 621,712 1,278,997 3,101,498 584,688 594,420 3,512,787 1,763,029 1,147,823 954,129 406,699
Total governmental activities program revenues: 3,800,436 4,565,621 6,027,912 4,079,470 3,993,539 14,519,193 7,599,960 5,564,052 3,919,595 3,185,876
Business-type activities:
Electric 11,482,077 11,550,772 12,892,924 11,054,343 12,272,714 12,330,867 13,319,862 14,448,657 13,807,889 16,837,740
Water 1,283,986 1,292,890 1,411,320 1,356,104 1,453,343 1,275,656 2,389,549 1,679,399 1,669,180 1,455,989
Wastewater 1,096,290 1,151,763 1,193,276 1,244,542 1,239,669 1,208,541 2,102,861 1,277,389 1,231,752 1,325,169
Harbor 3,359,455 3,302,689 3,437,043 3,495,592 3,485,047 3,021,807 3,730,319 3,782,483 3,815,729 4,173,014
Seward Marine Industrial Center 593,307 608,810 531,842 1,076,575 666,303 696,747 781,863 966,262 1,026,939 1,219,415
Healthcare facilities 18,330,000 17,729,000 19,384,000 21,736,000 24,587,000 24,320,000 28,537,000 30,034,000 29,786,000 29,017,000
Parking 318,223 328,347 330,625 352,617 355,565 246,467 431,065 392,369 332,247 474,824
Operating grants and contributions 113,439 91,380 85,831 297,410 (64,177) 741,425 1,673,325 264,035 24,900 136,516
Capital grants and contributions 13,559,150 12,059,662 7,254,741 5,935,187 2,754,505 - 388,239 4,750,241 1,075,302 527,983
Total business-type activities program revenues 50,135,927 48,115,313 46,521,602 46,548,370 46,749,969 43,841,510 53,354,083 57,594,835 52,769,938 55,167,650
Total Primary Government Revenues $ 53,936,363 52,680,934 52,549,514 50,627,840 50,743,508 58,360,703 60,954,043 63,158,887 56,689,533 58,353,526
Net (Expenses)/Revenue
Governmental activities $ (10,615,167) (10,836,088) (7,361,191) (10,216,351) (9,438,262) (9,121,013) (8,742,391) (11,625,736) (10,981,239) (13,359,546)
Business-type activities 12,309,852 9,432,300 5,304,817 5,065,800 4,757,163 1,964,848 7,318,339 8,608,795 1,854,236 1,559,023
Total Primary Government Net Expense $ 1,694,685 (1,403,788) (2,056,374) (5,150,551) (4,681,099) (7,156,165) (1,424,052) (3,016,941) (9,127,003) (11,800,523)
** Community support expenses in 2020 solely related to CARES Act funds received due to COVID-19. No taxpayer dollars were used.
City of Seward, Alaska
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
93
Table 2, continued
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Revenues and Other Changes
in Net Position
Governmental activities:
Taxes:
Sales tax $4,883,996 5,004,992 5,160,344 5,326,437 5,674,689 3,805,487 6,861,114 7,635,648 7,856,783 8,077,227
Property tax 1,013,370 1,152,116 1,208,090 1,473,199 1,556,874 1,564,692 1,636,727 1,705,639 1,738,875 1,944,128
Other tax 546,936 596,227 520,907 556,065 591,674 217,434 713,633 804,511 996,832 1,033,595
Grants and entitlements 850,297 608,651 880,255 768,250 570,325 342,227 533,617 534,985 441,937 471,248
Investment earnings 125,636 51,306 118,637 143,248 234,551 151,449 (49,837) (128,204) 487,853 584,476
Gain on disposal of assets - - - - - - - 663,500 555,600 780,000
Transfers 1,181,852 1,393,673 89,589 899,264 (2,710,077) 1,444,406 850,387 990,719 1,110,348 1,203,723
Total governmental activities 8,602,087 8,806,965 7,977,822 9,166,463 5,918,036 7,525,695 10,545,641 12,206,798 13,188,228 14,094,397
Business-type activities:
Investment earnings 278,688 89,578 238,518 327,860 765,327 666,348 (104,961) (508,997) 1,254,418 1,266,043
Grants and entitlements 1,242,072 917,500 916,330 1,044,510 1,188,868 - - - - -
Other 522 - - - - - - - - (8,341)
Transfers (1,181,852) (1,393,673) (89,589) (899,264) 2,710,077 (1,444,406) (850,387) (990,719) (1,110,348) (1,203,723)
Total business-type activities 339,430 (386,595) 1,065,259 473,106 4,664,272 (778,058) (955,348) (1,499,716) 144,070 53,979
Total primary government 8,941,517 8,420,370 9,043,081 9,639,569 10,582,308 6,747,637 9,590,293 10,707,082 13,332,298 14,148,376
Changes in Net Position
Governmental activities $(2,013,080) (2,029,123) 616,631 (1,049,888) (3,520,226) (1,595,318) 1,803,250 581,062 2,206,989 734,851
Business-type activities 12,649,282 9,045,705 6,370,076 5,538,906 9,421,435 1,186,790 6,362,991 7,109,079 1,998,306 1,613,002
Total Primary Government $10,636,202 7,016,582 6,986,707 4,489,018 5,901,209 (408,528) 8,166,241 7,690,141 4,205,295 2,347,853
Beginning Net Position $170,356,262 182,578,327 182,203,943 189,190,650 192,466,735 198,387,470 197,978,942 206,145,183 213,835,324 218,040,619
Ending Net Position 182,578,327 182,203,943 189,190,650 192,466,735 198,367,944 197,978,942 206,145,183 213,835,324 218,040,619 220,388,472
Change in Net Position $10,636,202 (374,384) 6,986,707 3,276,085 5,901,209 (408,528) 8,166,241 7,690,141 4,205,295 2,347,853
(accrual basis of accounting)
Last Ten Fiscal Years
Changes in Net Position, continued
City of Seward, Alaska
94
Table 3
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable $600,308 622,337 394,161 392,169 439,653 442,217 545,560 814,310 858,515 918,117
Committed 2,126,418 2,126,418 2,126,418 2,126,418 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,701,036
Assigned 324,465 335,280 335,280 407,976 574,777 612,487 575,000 597,995 597,995 -
Unassigned 4,718,517 4,873,463 4,621,429 5,638,726 7,017,278 7,169,606 8,462,934 8,788,640 10,970,377 9,806,971
Total General Fund $7,769,708 7,957,498 7,477,288 8,565,289 10,031,708 10,224,310 11,583,494 12,200,945 14,426,887 13,426,124
All Other Governmental Funds
Nonspendable $16,746 9,676 5,858 - - - - - 206,820 137,880
Restricted - - - - - - - -
Assigned 2,752,119 2,507,741 2,797,134 2,845,888 2,896,785 2,963,035 1,429,315 3,149,826 3,049,783 4,823,286
Unassigned (deficit)- - - (8,383) (40,531) - (10,639) (797,420) (841,829) (40,412)
Total All Other Governmental Funds $2,768,865 2,517,417 2,802,992 2,837,505 2,856,254 2,963,035 1,418,676 2,352,406 2,414,774 4,920,754
Total All Governmental Funds $10,538,573 10,474,915 10,280,280 11,402,794 12,887,962 13,187,345 13,002,170 14,553,351 16,841,661 18,346,878
(modified accrual basis of accounting)
Last Ten Fiscal Years
Fund Balances of Governmental Funds
City of Seward, Alaska
95
Table 4
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Taxes $6,438,604 6,755,941 7,003,205 7,421,769 7,906,241 5,636,427 9,326,027 10,160,723 10,596,294 11,060,685
Licenses and permits 206,365 158,174 125,690 144,462 226,052 136,475 116,886 205,996 219,131 187,217
Intergovernmental 3,401,334 3,188,211 5,278,081 3,083,426 3,177,394 13,798,350 4,419,943 4,356,690 2,277,024 873,719
Charges for Services 2,775,824 2,931,087 2,950,159 3,124,918 3,127,545 2,809,873 3,639,583 3,849,457 3,756,247 3,814,739
Fines and bails 17,993 18,365 17,006 14,317 9,496 11,075 22,308 28,759 19,203 39,956
Investment earnings 78,716 10,354 65,059 87,248 234,551 151,449 (49,837) (128,204) 487,853 584,476
Other revenues 208,397 247,101 183,793 330,898 168,397 118,754 1,666,277 214,261 388,251 641,732
Total Revenues 13,109,240 13,309,233 15,622,993 14,207,038 14,849,676 22,662,403 19,141,187 18,687,682 17,744,003 17,202,524
Expenditures
General government 3,279,972 3,433,174 3,318,178 3,601,390 3,868,104 3,651,213 4,564,586 5,008,644 5,590,743 5,619,785
Public safety 3,366,320 3,373,133 3,489,111 3,677,579 4,005,450 4,737,696 4,486,732 5,219,660 5,145,275 5,408,420
Public works 1,523,557 2,047,067 1,901,390 1,400,688 1,181,051 1,546,116 1,693,377 3,324,110 1,961,086 2,132,292
Parks and Recreation 1,374,393 1,301,314 1,440,658 1,488,698 1,506,635 1,341,589 1,516,689 1,707,417 1,731,171 2,140,744
Library 553,272 543,123 573,535 573,595 627,727 649,865 616,045 766,273 758,259 846,269
Clinic 1,682,532 1,846,150 1,660,050 1,637,780 1,637,563 2,481,413 2,107,042 1,917,114 146,256 -
Community Support - - - - - 5,081,737 - - - -
Retirement benefits 1,401,165 591,859 616,846 576,741 - - - - - -
Capital outlay 647,858 756,498 5,844,519 575,008 803,385 5,533,882 1,970,121 1,654,915 1,373,245 1,122,976
Debt service:
Principal 90,000 95,000 100,000 200,000 210,000 220,000 230,000 215,000 230,000 235,000
Interest and other costs 155,150 151,550 204,993 253,756 244,106 234,581 262,976 196,481 185,606 175,544
Total Expenditures 14,074,219 14,138,868 19,149,280 13,985,235 14,084,021 25,478,092 17,447,568 20,009,614 17,121,641 17,681,030
Excess (Deficiency) of Revenues
Over Expenditures (964,979) (829,635) (3,526,287) 221,803 765,655 (2,815,689) 1,693,619 (1,321,932) 622,362 (478,506)
Other Financing Sources (Uses)
Proceeds from debt issuance:
Par value - - 2,790,000 - - - 2,180,000 - - -
Premium - - 199,733 - - - 574,273 - - -
Payment to bond escrow agent - - - - - - (2,720,201) - - -
Proceeds from sale of assets - - - - - - - 663,500 555,600 780,000
Transfers in 3,421,759 3,593,615 3,293,372 3,147,358 3,083,277 2,810,006 3,800,372 4,008,979 4,758,621 6,095,779
Transfers out (2,386,919) (2,272,250) (3,185,509) (2,248,094) (2,250,732) (1,365,600) (2,949,985) (3,018,260) (3,648,273) (4,892,056)
Total Other Financing Sources (Uses)1,034,840 1,321,365 3,097,596 899,264 832,545 1,444,406 884,459 1,654,219 1,665,948 1,983,723
Net Change in Fund Balance $69,861 491,730 (428,691) 1,121,067 1,598,200 (1,371,283) 2,578,078 332,287 2,288,310 1,505,217
Fund Balances, beginning $10,217,264 10,287,125 10,760,490 10,314,793 11,396,543 13,014,269 11,642,986 14,221,064 14,553,351 16,841,661
Fund Balances, ending 10,287,125 10,778,855 10,331,799 11,435,860 12,994,743 11,642,986 14,221,064 14,553,351 16,841,661 18,346,878
Net Change in Fund Balances $69,861 491,730 (428,691) 1,121,067 1,598,200 (1,371,283) 2,578,078 332,287 2,288,310 1,505,217
Debt service as a percentage of
noncapital expenditures*1.83%1.84%2.29%3.38%3.42%2.28%3.19%2.24%2.71%2.55%
Total non-capital expenditures 13,426,361$ 13,382,370$ 13,304,761$ 13,410,227$ 13,280,636$ 19,944,210$ 15,477,447$ 18,354,699$ 15,332,921$ 16,109,364$
*Computed as follows: (Principal + Interest) / (Total non-capital expenditures)
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
City of Seward, Alaska
Changes in Fund Balances of Governmental Funds
96
Table 5
Fiscal Year Taxes
Licenses and
Permits
Inter-
governmental
Charges for
Services
Fines and
Bails
Investment
income Other Total
2015 6,438,604 206,365 2,280,061 2,757,831 17,993 78,716 125,812 11,905,382
2016 6,755,941 158,174 1,092,998 2,912,722 18,365 10,354 90,735 11,039,289
2017 7,003,205 125,690 1,229,617 2,950,159 17,006 65,059 81,718 11,472,454
2018 7,421,769 144,462 1,374,253 3,124,918 14,317 87,248 215,581 12,382,548
2019 7,906,241 226,052 1,213,515 3,127,545 9,496 234,551 97,293 12,814,693
2020 5,636,427 136,475 1,078,448 2,809,873 11,075 150,417 118,427 9,941,142
2021 9,326,027 116,886 1,239,768 3,639,583 22,308 (49,808) 917,436 15,212,200
2022 10,160,723 205,996 1,298,852 3,849,457 28,759 (128,106) 199,613 15,615,294
2023 10,596,294 219,131 1,201,572 3,756,247 19,203 487,628 329,131 16,609,206
2024 11,060,685 187,217 710,102 3,814,739 39,956 584,253 383,675 16,780,627
Last Ten Fiscal Years
General Fund Revenues by Source
City of Seward, Alaska
97
Table 6
Fiscal Year Property Tax Sales Tax (1)
Payments-in-Lieu-
of-Tax
Hotel/Motel
Tax (2) Other (3)Total
2015 1,003,665 4,883,996 88,331 458,605 4,007 6,438,604
2016 1,152,216 5,004,992 90,382 505,845 2,506 6,755,941
2017 1,213,627 5,160,344 107,157 520,907 1,170 7,003,205
2018 1,464,361 5,326,437 73,207 556,065 1,699 7,421,769
2019 1,556,874 5,674,689 76,694 591,674 6,310 7,906,241
2020 1,564,692 3,805,487 46,312 217,434 2,502 5,636,427
2021 1,655,216 6,861,114 89,061 713,633 7,003 9,326,027
2022 1,705,639 7,635,648 11,027 804,511 3,898 10,160,723
2023 1,738,875 7,856,783 156,404 840,428 3,804 10,596,294
2024 1,944,128 8,077,227 159,913 873,682 5,735 11,060,685
2) The hotel/motel tax rate is 4%.
3) Represents tax-related penalties and interest.
City of Seward, Alaska
1) Sales tax rate has been 4% since July 1, 2003 and one-quarter (1/4) of all sales tax revenue is transferred out of the
General Fund to the Hospital Enterprise Fund to pay healthcare-related debt, capital, and operating costs.
Last Ten Fiscal Years
General Fund Tax Revenues by Source
98
Table 7
Fiscal Year City Borough (1) KPCC (2)
Flood Service
(3)Total
2015 3.12 4.50 0.00 0.75 8.37
2016 3.12 4.50 0.00 0.75 8.37
2017 3.84 4.70 0.00 0.75 9.29
2018 3.84 4.70 0.00 0.75 9.29
2019 3.84 4.70 0.00 0.75 9.29
2020 3.84 4.70 0.00 0.75 9.29
2021 3.84 4.70 0.00 0.75 9.29
2022 3.84 4.70 0.00 0.75 9.29
2023 3.84 4.50 0.00 0.75 9.09
2024 3.84 3.85 0.00 1.00 8.69
1) Includes Kenai Peninsula Borough only.
2) Kenai Peninsula Community College.
3) Seward/Bear Creek Flood Service Area created effective 2004.
City of Seward, Alaska
Direct and Overlapping Governments
Last Ten Fiscal Years
(Per $1,000 of Assessed Value)
Property Tax Rates
99
Table 8
Fiscal
Year
Total Tax Levy
for Fiscal Year Amount
Percentage of
Levy Amount
Percentage of
Levy
2015 1,006,912 978,629 97.191%21,119 999,748 97.191%
2016 1,101,723 1,074,987 97.573%22,950 1,097,937 99.656%
2017 1,189,014 1,172,169 98.583%28,556 1,200,725 100.985%
2018 1,458,073 1,419,345 97.344%13,990 1,433,335 98.303%
2019 1,552,098 1,486,245 95.757%56,760 1,543,005 99.414%
2020 1,563,721 1,489,328 95.243%41,880 1,531,208 97.921%
2021 1,627,613 1,539,140 94.564%68,778 1,607,918 98.790%
2022 1,733,341 1,639,939 94.611%86,612 1,726,551 99.608%
2023 1,754,387 1,706,045 97.245%32,762 1,738,807 99.112%
2024 1,926,309 1,835,376 95.279%84,210 1,919,586 99.651%
Source: Kenai Peninsula Borough
City of Seward, Alaska
Property Tax Levies and Collections
Last Ten Fiscal Years
Collections in
Subsequent
Years
Collected in the Fiscal Year of
the Levy Total Collections to Date
100
Table 9
Fiscal
Year
Assessed Value
(2)
Estimated Actual
Value (1)
Assessed Value
(2)
Estimated Actual
Value (1)
Assessed Value
(2)
Estimated Actual
Value (1)
Direct (City
of Seward)
Overlapping (KPB,
KPCC & BCFSA)^
Combined Tax
Rate
Ratio of
Assessed Value
to Total Est.
Actual Value
2015 239,873,088 251,015,800 80,345,819 109,149,800 320,218,907 360,165,600 3.12 5.00 8.12 88.91%
2016 247,469,769 267,717,900 100,668,606 129,667,600 348,138,375 397,385,500 3.12 5.25 8.37 87.61%
2017 265,631,189 274,511,700 102,282,822 139,869,000 **381,263,951 414,380,700 3.12 5.25 8.37 92.01%
2018 272,890,000 282,031,815 94,933,968 129,822,201 367,823,968 411,854,016 3.84 5.45 9.29 89.31%
2019 285,579,453 305,984,502 107,419,854 145,391,590 392,999,307 451,376,092 3.84 5.45 9.29 87.07%
2020 293,699,390 309,253,199 113,771,003 153,171,921 407,470,393 462,425,120 3.84 5.45 9.29 88.12%
2021 303,134,117 319,187,573 120,245,572 161,888,749 423,379,689 481,076,322 3.84 5.45 9.29 88.01%
2022 313,981,161 331,020,645 89,376,541 120,113,801 403,357,702 451,134,446 3.84 5.45 9.29 89.41%
2023 344,143,068 360,891,339 113,097,076 153,376,842 457,240,144 514,268,182 3.84 5.25 9.09 88.91%
2024 370,545,073 390,143,194 131,066,193 176,837,174 501,611,266 566,980,368 3.84 4.85 8.69 88.47%
^ Includes Kenai Peninsula Borough, Kenai Peninsula Community College and Bear Creek Flood Service Area.
Source: State of Alaska "Alaska Taxable 2024" (1) and Kenai Peninsula Borough Certified Tax Roll (2).
** 2017 values include one-time oil rig "Spartan"
Last Ten Fiscal Years
Assessed and Estimated Actual Value of Taxable Property
City of Seward, Alaska
Real Property Personal Property Total Property Tax Rates
101
Table 10
Percentage of Percentage of
Total Taxable 2015 Total Taxable
Type of 2024 Assessed Assessed Assessed
Taxpayer (2)Business Value (1)Rank Value (2)Value (1)Rank Value (2)
Leirer Enterprises LLC Real Estate/Leasing 15,015,100$ 1 3.0%10,606,600$ 2 3.3%
Brice Marine, LLC Marine 13,770,314 2 2.7%5,024,803 8 1.6%
Crowley Fuels LLC Petroleum Products 11,526,345 3 2.3%0.0%
Four Seasons Marine Services Corp Marine/Ship Repair 10,370,908 4 2.1%0.0%
CATC / VIAD Corp Hote & Tourism 9,419,192 5 1.9%0.0%
Carr Gottstein Grocery 8,578,781 6 1.7%7,072,400 3 2.2%
Gateway 82 LLC Hotel 8,360,628 7 1.7%0.0%
Harbor 360 LLC Hotel 8,089,800 8 1.6%0.0%
Cruz Construction Construction 5,479,000 9 1.1%0.0%
Alaskan Captains LLC 5,122,767 10 1.0%0.0%
Icicle / Seward Fisheries Seafood Processing 6,359,938 6 2.0%
GCI Communications 5,263,803 7 1.6%
Mindenbergs Juris dba Breeze Inn Hotel 6,879,200 4 2.1%
CPD Alaska, LLC Petroleum Products 3,617,241 10 1.1%
Ciri Alaska Tourism Tourism 17,528,832 1 5.5%
Seward Hospitality LLC Hotel 6,767,400 5 2.1%
Y C Seward Hotel Group LLC Hotel/Retail 4,070,600 9 1.3%
Total 95,732,835$ 19.1%73,190,817$ 22.9%
1) Includes real, personal, and oil taxes based on 2024 tax rolls. Source: Kenai Peninsula Borough Assessors Department
2) Based on total assessed value of $320,218,907 in 2015 and $501,611,266 in 2024.
City of Seward, Alaska
Principal Property Taxpayers
Compared with Nine Years Ago
December 31, 2024
Above assessed values are a best effort to identify ten largest property taxpayers, although values reflect aggregation of multiple tax accounts. It is
possible that some tax accounts may have different names, making it difficult to identify as being owned by the same entity. Therefore, some valuations
may have been inadvertently omitted above.
102
Table 11
Type of Business
FY2024
Taxable Sales
(1)
Percent of
Total Taxable
Sales
FY2015
Taxable Sales
(2)
Percent of
Total Taxable
Sales
Retail Trade 69,557,013$ 35.5% 47,024,059$ 37.7%
Guiding 46,903,063 23.9% 23,823,855 19.1%
Hotel/Motel/B & B 24,299,524 12.4% 14,196,814 11.4%
Restaurant/Bar 22,526,079 11.5% 14,938,450 12.0%
Public Administration & Education 11,118,789 5.7% 8,195,250 6.6%
Wholesale Trade 6,507,448 3.3% 5,072,923 4.1%
Rental Residential Property*3,382,966 1.7% 3,349,276 2.7%
Services 2,521,075 1.3% 2,108,306 1.7%
Manufacturing 1,405,716 0.7% 1,065,790 0.9%
Transportation, Communication, Public Utilities 1,119,325 0.6% 1,189,717 1.0%
Information 1,015,076 0.5% 2,796,850 2.2%
Administrative, Waste Management 985,962 0.5% 0.0%
Rental Non-Residential Property 907,297 0.5% 0.0%
Rental Commercial Property*849,109 0.4% 0.0%
Construction 796,960 0.4% 665,443 0.5%
Rental Personal Property 777,413 0.4% 0.0%
Professional, Scientific 727,389 0.4% 0.0%
Rental Self-Storage 394,824 0.2% 0.0%
Arts & Entertainment 186,048 0.1% 0.0%
Educational Services 31,379 0.0% 0.0%
Finance, Insurance, Real Estate 20,067 0.0% 18,230 0.0%
Agriculture, Forestry, Fisheries 13,194 0.0% 9,619 0.0%
Health Care 12,397 0.0% 367,904 0.3%
Other 5,976 0.0% 0.0%
196,064,089$ 100% 124,822,486$ 100%
*Residential & Commercial Rental Property
combined into the single category, "Rental
Property" on 2015 ACFR.
City of Seward, Alaska
Principal Taxable Sales by Line of Business
December 31, 2024
1) Source: Kenai Peninsula Borough, Finance Dept., Sales Tax Division
Note: Information regarding the ten principal revenue payers, and the amount collected from each, is not available. The Kenai
Peninsula Borough collects sales tax on behalf of the City of Seward as required by State law. The Borough does not disclose sales
tax data by individual business, even to the cities within the Borough. Rather than to provide information on the ten principal
revenue payers, we are providing information on taxable sales by Line of Business.
103
Table 12
Fiscal
Year G.O. Bonds (2) * Revenue Bonds
Capital
Leases G.O. Bonds (2) *
Revenue
Bonds
Capital
Leases Loans
Total Primary
Government
Govern-
mental
Total
Primary
Gov't
Govern-
mental
Total
Primary
Gov't
Debt as a % of
Estimated
Actual Taxable
Value of
Property (5)
2015 3,521,546 - - - 34,210,046 - 4,275,945 42,007,537 2.6% 31.3% 1,285 15,331 11.66%
2016 3,210,000 - - - 28,370,000 - 4,085,777 35,665,781 2.4% 26.7% 1,205 13,017 8.98%
2017 6,299,126 - - - 29,075,650 - 2,629,364 38,004,144 5.0% 29.2% 2,502 14,271 9.17%
2018 6,082,813 - - - 27,314,418 - 2,391,901 35,789,132 4.7% 27.8% 2,354 13,850 8.69%
2019 5,636,500 - - - 24,073,187 - 2,198,294 31,907,981 4.4% 24.9% 2,215 12,538 7.07%
2020 5,620,187 - - - 23,906,955 - 2,001,801 31,528,943 4.1% 21.6% 2,159 12,113 6.82%
2021 5,316,563 - - - 22,090,724 - 1,802,352 29,209,639 3.9% 20.0% 2,042 11,222 6.07%
2022 5,057,792 - - - 30,541,789 - 1,599,911 37,199,492 3.5% 25.4% 2,038 14,988 8.25%
2023 4,784,021 - - - 28,778,735 - 1,394,433 34,957,189 3.3% 22.1% 1,853 13,539 6.80%
2024 4,505,250 - - - 26,950,681 - 1,180,211 32,636,142 2.8%21.2%1,814 13,144 5.76%
1) Excludes other than debt instruments (i.e. compensated absences, net pension obligation, inter-fund loans)
2) G.O. Bonds represent general obligation bonds pledging the full faith and credit of the City.
4) Source: Alaska Department of Commerce, Community & Economic Development Certified Municipal Population.
5) Estimated Actual Taxable Value data can be found in State of Alaska "Alaska Taxable 2024" (https://www.commerce.alaska.gov/web/portals/4/pub/osa/14taxable.pdf)
6) Source: City of Seward finance department
** Resolution 2017-088 authorized final payment in full of the Harbor USACE breakwater loan
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
3) Source: U.S. Dept. of Commerce, Bureau of Economic Analysis. Personal income is estimated by multiplying Kenai Peninsula Borough per-capita personal income by Seward population, as Seward-
specific data unavailable (http://www.bea.gov/iTable/index_regional.cfm)
Last Ten Fiscal Years (1)
Ratios of Outstanding Debt by Type
City of Seward, Alaska
Business-Type Activities (6)
Debt as a % of Total
Personal Income (3) Debt per Capita (4)Governmental Activities (6)
104
Table 13
Fiscal
Year Population (1)
Assessed
Value (2) Governmental Business-Type Total
Ratio of General
Bonded Debt to
Assessed Value
General
Bonded Debt
per Capita
2015 2740 320,219 3,522 - 3,522 1.10%1,285
2016 2663 348,138 3,210 - 3,210 0.92%1,205
2017 2518 381,264 6,299 - 6,299 1.65%2,502
2018 2584 367,824 6,082 - 6,082 1.65%2,354
2019 2545 392,999 5,636 - 5,636 1.43%2,215
2020 2509 407,470 5,370 - 5,370 1.32%2,140
2021 2603 423,380 4,660 - 4,660 1.10%1,790
2022 2482 403,358 4,445 - 4,445 1.10%1,791
2023 2582 457,240 4,784 - 4,784 1.05%1,853
2024 2483 501,611 4,505 - 4,505 0.90%1,814
# Amounts expressed in thousands. Excludes revenue bonds of Business-Type entities.
1) Source: Alaska Department of Commerce, Community & Economic Development Certified Municipal Population.
2) Source: Kenai Peninsula Borough (expressed in thousands).
Last Ten Fiscal Years
Ratio of General Bonded Debt to Assessed Value and
City of Seward, Alaska
General Bonded Debt per Capita
General Bonded Debt #
105
Table 14
Jurisdiction
Net General Obligation
Bonded Debt
Outstanding
Percentage
Applicable to
Seward
Amount Applicable
to City of Seward
Direct:
City of Seward $4,505,250 (1)100%4,505,250
Overlapping:
Kenai Peninsula Borough (KPB)46,630,000 (2)5.7%(3)2,637,222
$51,135,250 7,142,472
3) Based on ratio of City of Seward assessed value (real and personal property = $501,611,266)
to total assessed value of the Kenai Peninsula Borough ( $8,869,230,636)
Source: "2024 Alaska Taxable" State of Alaska, and KPB main and supplemental tax rolls.
Note: Excludes State assessed values which are exempt from taxation at City and Borough level.
City of Seward, Alaska
Computation of Direct and Overlapping Bonded Debt
December 31, 2024
1) Excluding general obligation bonds reported in the Enterprise Funds. Includes governmental activities' general obligation
bonds, revenue bonds, and capital leases.
2) Source: KPB finance department.
106
Table 15
City of Seward, Alaska
Legal Debt Margin
December 31, 2024
No debt limit mandated by law.
107
Table 16
Fiscal
Year
Gross
Revenues (1)
Operating
Expenses (2)
Net Revenue
Available for
Debt Service Principal Interest Total Coverage (4)
2015 11,674,228 8,887,162 2,787,066 400,000 273,261 673,261 4.14
2016 11,607,631 9,421,854 2,185,777 240,000 109,739 349,739 6.25
2017 13,010,358 10,267,321 2,743,037 150,000 193,118 343,118 7.99
2018 11,168,299 9,730,414 1,437,885 160,000 185,400 345,400 4.16
2019 12,544,308 9,801,084 2,743,224 165,000 180,199 345,199 7.95
2020 12,516,634 10,057,074 2,459,560 170,000 171,949 341,949 7.19
2021 13,295,324 10,783,920 2,511,404 180,000 163,451 343,451 7.31
2022 14,289,520 11,371,397 2,918,123 190,000 432,998 622,998 4.68
2023 14,137,893 11,634,197 2,503,696 200,000 586,700 786,700 3.18
2024 17,055,648 12,208,289 4,847,359 205,000 576,700 781,700 6.20
1) Total revenues, including interest, exclusive of grants.
2) Total operating expenses exclusive of depreciation and payments in lieu of taxes.
City of Seward, Alaska
Electric Enterprise Fund
Debt Service Requirements (3)
4) Revenue bond agreements require Net Revenue Available for Debt Service be at least 1.30 times the amount of
the total annual debt service requirement.
Last Ten Fiscal Years
Revenue Bond Coverage
3) Includes principal and interest of revenue bonds only.
108
Table 17
Fiscal
Year
Gross Revenues
(1)
Operating
Expenses (2)
Net Revenue
Available for
Debt Service Principal Interest Total Coverage (4)
2015 3,396,213 2,289,480 1,106,733 460,000 223,262 683,262 1.62
2016 3,323,340 2,500,625 822,715 470,000 200,380 670,380 1.23
2017 3,480,176 2,132,971 1,347,205 480,000 193,100 673,100 2.00
2018 3,564,884 2,268,324 1,296,560 490,000 177,900 667,900 1.94
2019 3,616,290 1,961,095 1,655,195 510,000 158,301 668,301 2.48
2020 3,126,459 2,189,254 937,205 530,000 134,899 664,899 1.41
2021 3,716,628 2,119,662 1,596,966 560,000 110,549 670,549 2.38
2022 3,704,733 2,382,033 1,322,700 350,000 84,850 434,850 3.04
2023 3,911,478 2,650,955 1,260,523 370,000 67,350 437,350 2.88
2024 4,328,551 2,952,335 1,376,216 385,000 48,850 433,850 3.17
1) Total revenues, including interest, exclusive of grants.
2) Total operating expenses exclusive of depreciation and payments in lieu of taxes.
3) Includes principal and interest of revenue bonds only.
amount of the total annual debt service requirement.
City of Seward, Alaska
Harbor Enterprise Fund
Debt Service Requirements (3)
4) Revenue bond agreements require Net Revenue Available for Debt Service be at least 1.20 times the
Last Ten Fiscal Years
Revenue Bond Coverage
109
Table 18
Fiscal Year Population
School
Enrollment
Personal Income
(3)
Per Capita
Personal
Income (2)
Median
Age (4) Population (1)
School
Enrollment
Unemployment
Rate (4)
2012 2,754 593 122,039,039 44,313 40.6 56,369 9,083 8.60%
2013 2,768 574 117,189,666 42,337 41.4 56,756 8,892 7.90%
2014 2,768 588 134,207,628 48,485 40.0 56,862 8,832 7.80%
2015 2,740 605 133,515,899 48,728 41.1 57,763 9,132 7.80%
2016 2,663 634 139,082,614 52,228 40.8 58,060 9,141 8.20%
2017 2,518 582 128,621,617 51,081 41.4 58,024 9,027 8.50%
2018 2,584 585 128,682,204 49,800 41.5 58,471 9,005 7.70%
2019 2,545 599 128,166,698 50,360 41.8 58,367 8,881 7.00%
2020 2,509 474 134,668,062 53,674 37.3 58,708 8,085 9.10%
2021 2,603 474 146,129,817 56,139 42.1 59,414 8,495 7.30%
2022 2,482 508 146,539,762 59,041 42.3 59,767 8,423 7.30%
2023 2,582 494 158,179,429 61,262 42.9 60,690 8,626 4.70%
2024 2,483 482 154,075,116 62,052 43.2 61,350 8,510 5.30%
(1) Alaska Department of Labor estimates as of July 1 of each fiscal year https://live.laborstats.alaska.gov/data-pages/alaska-population-estimates
(2) Source: U.S. Dept. of Commerce, Bureau of Economic Analysis for Kenai Peninsula Borough; specific data not available for Seward
(http://www.bea.gov/iTable/index_regional.cfm)
(3) Uses Kenai Peninsula Borough Per Capita Personal Income multiplied by Seward population. Source: U.S. Dept. of Commerce, Bureau of
Economic Analysis, using annual midyear population estimates.
(4) Borough; assumed to be representative of Seward, as specific Seward data unavailable
(http://live.laborstats.alaska.gov/labforce/labdata.cfm?s=14&a=0)
(A) Age and Unemployment data for City of Seward is not available, but is considered comparable to data for the Kenai Peninsula Borough
City of Seward, Alaska
Demographic and Economic Statistics
Last Ten Fiscal Years
For the Kenai Peninsula Borough (A)City of Seward
110
Table 19
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund:
City Clerk 3.00 3.11 3.23 3.53 3.00 3.05 2.70 3.70 2.88 3.01
City Manager and Legislative 4.00 3.00 3.00 4.15 3.44 3.41 3.25 3.20 4.40 4.13
M.I.S.2.50 2.76 2.72 2.73 2.63 3.02 3.00 3.00 3.01 3.00
Finance 7.00 9.29 8.04 7.45 8.35 6.07 7.55 5.50 5.58 6.52
Police, Jail, Animal Control 25.50 24.34 23.73 23.15 23.20 24.24 22.65 15.40 18.32 20.00
Fire 2.75 2.93 2.74 2.75 2.97 2.81 2.90 4.30 4.33 3.56
Building Inspection 1.25 1.00 1.00 1.00 1.00 2.01 2.40 2.00 3.55 2.13
Public Works 5.94 6.45 7.11 5.83 4.46 7.12 7.65 11.70 7.71 6.70
Community Development 2.00 2.01 2.40 1.96 1.88 2.63 2.40 2.90 2.33 2.79
Maintenance 2.03 2.02 2.01 1.37 1.00 1.01 2.00 11.70 1.09 2.01
Parks & Recreation 14.10 13.74 14.46 14.26 13.53 9.66 7.20 8.90 10.95 12.58
Library 4.59 4.98 5.16 5.06 4.65 4.22 5.45 6.70 5.85 6.13
General Fund Total 74.66 75.63 75.60 73.24 70.12 69.25 69.15 79.00 70.00 72.56
Parking 3.09 1.04 1.67 1.62 0.96 0.10 0.00 0.00 0.34 0.90
Harbor and SMIC 11.65 11.72 12.12 11.77 12.25 11.70 11.60 12.40 13.28 12.79
Electric 11.00 10.82 11.89 11.46 10.63 10.69 10.60 11.10 10.24 9.61
Water 3.53 2.52 2.86 3.36 3.37 2.19 2.00 2.00 3.47 2.40
Wastewater 2.53 2.18 1.74 2.37 2.30 2.27 2.00 2.00 1.49 3.20
Total All Funds 106.46 103.91 105.88 103.82 99.63 96.20 95.35 106.50 98.82 101.46
Source: City of Seward finance department
Last Ten Fiscal Years
Full-Time Equivalent Employees by Fund
City of Seward, Alaska
111
Table 20
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Public Safety
Police Services:
Physical arrests 270 322 244 242 97 231 160 125 137 133
Traffic violations/warnings 2,042 785 944 1149 1180 641 976 967 895 1986
Parking violations 63 74 79 249 336 254 196 307 228 278
Fire and Emergency Services:
Number of calls answered (a) 376 359 361 264 300 230 292 507 510
Harbor
Registered vessels 4,860 5,193 5,053 5,565 5,813 5,159 5,520 6,062 6,467 6372
Number on waiting list for slips 184 161 171 147 161 166 179 208 194 173
Number of boat lifts 602 509 553 576 526 485 570 589 483 474
General cargo tonnage (b) 112 - - - 2,044 45 23,005 811 6,332 38,047
Fish product tonnage 21,632 10,085 8,702 15,670 13,410 8,225 9,270 7,604 15,239 2,571
Petroleum (gallons) (c) 3,450,054 3,637,401 2,853,828 2,786,987 2,423,856 1,855,312 2,944,847 2,830,738 2,890,084 2,540,928
Water and Wastewater Systems:
Water service connections 973 976 982 980 981 996 1,007 950 1,036 1,122
Daily average consumption (gallons) 1,130,528 1,484,754 1,109,546 1,059,115 971,670 841,561 1,147,272 1,118,983 1,249,212 1,020,685
Sewer service connections 948 950 954 952 955 970 975 898 1,000 1,175
Daily average treatment (gallons) 519,132 652,321 609,545 653,872 591,175 450,000 399,071 463,000 426,959 508,378
Electric System:
Number of service connections 2,759 2796 2,818 2,821 2,855 2,897 2,910 2,981 2,821 2,824
Total kilowatt hour sales 54,842,755 53,103,072 53,263,395 51,784,110 51,672,753 52,268,253 54,495,232 54,911,338 55,246,836 52,108,211
(a) Beginning June 2009, began providing aid response for medical calls.
(b) In 2012, includes 20,361 tons dredged material removed from harbor.
(c) In 2012, includes 1,344,546 gallons in barrels that crossed the dock.
Source: City of Seward police, fire, harbor, water, wastewater, and finance departments
Function
Last Ten Fiscal Years
Operating Indicators by Function
City of Seward, Alaska
112
Table 21
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Lane miles of street 54.80 54.8 54.8 55 55 55 55 55 55 55
Number of street lights 265 265 265 265 265 265 265 265 265 265
Public Safety
Number of fire stations 2 2 2 2 2 2 2 2 2 2
Fire rating (ISO)4/9 4/9 4/9 4/4x 3/3y *3/3y *3/3y 3/3y 3/3y 3/3y
Number of fire hydrants 220 220 220 220 220 232 232 232 236 236
Number of police stations 1 1 1 1 1 1 1 1 1 1
Number of Facilities
Parks and playgrounds 20 20 20 20 20 21 21 21 21 21
Libraries 1 1 1 1 1 1 1 1 1 1
Sewer treatment plants 2 2 2 2 2 2 2 2 2 2
Electric distribution line (miles)69 69 69 69 69 69 69 69 120 120
Electric substations 3 3 3 3 3 3 3 3 3 3
Source: City of Seward fire, public works and finance departments
*New ISO rating system beginning in 2018
Last Ten Fiscal Years
Capital Asset Statistics by Function
City of Seward, Alaska
113
Table 22
Fiscal
Year
Total Real Property
Value (1)
Number of
Permits
Value of
Permits
Number of
Permits
Value of
Permits
Bank Deposits
(2)
2015 251,015,800 30 16,808,765 11 759,860 75,514,000
2016 267,717,900 27 2,661,974 26 1,603,866 87,091,000
2017 274,511,700 14 2,324,733 21 1,070,477 86,329,000
2018 282,031,815 20 3,993,376 23 1,391,200 81,076,000
2019 305,984,502 19 10,577,917 20 1,406,850 80,659,000
2020 462,425,120 24 3,590,628 21 2,984,130 95,961,000
2021 331,020,645 24 3,605,605 26 2,831,337 126,126,000
2022 313,981,161 33 6,815,974 31 3,982,685 141,807,000
2023 360,891,339 27 25,728,605 26 1,420,190 127,346,000
2024 390,143,194 28 5,340,790 24 4,154,222 118,254,000
1) "Estimated Actual Value" from Table 9.
2) Bank deposit data as of 12/31 through 2014. Beginning 2015, data as of June 30.
Source:FDIC https://banks.data.fdic.gov/bankfind-suite/SOD/marketShare
3) Source: Construction Data - City of Seward Building Department
Last Ten Fiscal Years
Property Value, Construction, and Bank Deposits
City of Seward, Alaska
Commercial Construction Residential Construction
114
Table 23
Date of Incorporation June 1, 1912
Class Home Rule City
Form of Government Council / Manager
Area, Square Miles 22
Miscellaneous Operational Statistics:
Library - number of volumes 39,356
Fire Department - Number of volunteers 33
Sewer System - Maximum daily capacity (gallons)185,558,000
Water System - Maximum daily capacity (gallons)372,549,865
Electric System:
Miles of distribution lines 120
Miles of transmission lines 50
Harbor - Number of permanent slips 556
City Employees:
Regular Employees - Full-time equivalent 92
Temporary Employees - Full-time equivalent 9
Demographics:
School Enrollment, City of Seward (3)482
Unemployment Rate - Borough-Wide (1)5.3%
Population (2)2,483
Per-capita Personal Income (4)62,052
Qualified Voters 1,910
Facilities and Services not included in the reporting entity:
Education:
Elementary School
Number of students enrolled 205
Number of teachers 17
Middle School
Number of students enrolled 104
Number of teachers 6
High School
Number of students enrolled 173
Number of teachers 9
Alaska Vocational Technical Center
Number of students served annually 452
Number of teachers (includes Instructional Aides)26
Healthcare Facilities - a component unit of the reporting entity:
Providence Seward Medical & Care Center
Number of patient beds (6) combination of inpatient care & swing beds 6
Number of long-term care beds 40
Number of employees: 180
Exempt 30
Non-Exempt (includes non-staff rotating physicians)150
2) Source: Alaska Department of Commerce, Community & Economic Development Certified Municipal Population.
3) State of Alaska Department of Education & Early Development - https://education.alaska.gov/stats/
4) Source: U.S. Dept. of Commerce, Bureau of Economic Analysis. (http://www.bea.gov/iTable/index_regional.cfm) KPB per-capita
personal income used, as Seward specific data not available (2022 - last updated November 16, 2023)
City of Seward, Alaska
Miscellaneous Statistics
December 31, 2024
(1) Source: State of Alaska Department of Labor; represents not seasonally adjusted, annual unemployment rates for Kenai Peninsula
Borough; assumed to be representative of Seward, as specific Seward data unavailable
(http://live.laborstats.alaska.gov/labforce/labdata.cfm?s=14&a=0)
115
Compliance Section
116
3000 C Street N. Suite 201 Anchorage, Alaska 99503 Phone 907-274-2992 Fax 907-274-2993
Offices in Juneau and Soldotna A Professional Corporation
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on
an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Independent Auditor’s Report
Honorable Mayor and City Council
City of Seward, Alaska
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information
of City of Seward, Alaska, (City of Seward), as of and for the year ended December 31, 2024, and the
related notes to the financial statements, which collectively comprise City of Seward’s basic financial
statements, and have issued our report thereon dated July 21, 2025. Our report includes a reference to
other auditors who audited the financial statements of the Providence Seward Medical Center, as
described in our report of City of Seward’s basic financial statements. The financial statements of the
Providence Seward Medical Center were not audited in accordance with Government Auditing
Standards, and accordingly, this report does not include reporting on internal control over financial
reporting or compliance and other matters associated with the Providence Seward Medical Center or
that are reported on separately by those auditors who audited the financial statements of the
Providence Seward Medical Center.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Seward’s
internal control over financial reporting (internal control) as a basis for designing audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of City of Seward’s
internal control. Accordingly, we do not express an opinion on the effectiveness of City of Seward’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the entity’s financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
Honorable Mayor and City Council
City of Seward, Alaska
117
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Seward’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Anchorage, Alaska
July 21, 2025
118
City of Seward, Alaska
Schedule of Findings and Responses
Year Ended December 31, 2024
Section I - Summary of Auditor’s Results
Financial Statements
Type of Type of report the auditor issued on whether the
financial statements audited were prepared in accordance
with GAAP: Unmodified
Is a going concern emphasis-of-matter paragraph
included in the audit report? Yes X No
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None reported
Noncompliance material to financial statements noted? Yes X No
Section II - Financial Statement Findings
The City of Seward did not have any findings that relate to the financial statements.
119
Summary Schedule of Prior Audit Findings
Year Ended December 31, 2024
Financial Statement Findings
Finding 2023-001 Lack of Internal Controls over Utility Billings
Significant Deficiency
Condition and Context: During our testing of internal controls over the utility billing system
we noted one instance where a customer was not charged a base
fee in addition to their applicable metering cost.
Status: This finding has been resolved.
CITY OF SEWARD
P.O. Box 167
410 Adams Street
Seward, Alaska 99664-0167
Main Office (907) 224-4050
Police (907) 224-3338
Harbor (907) 224-3138
Fire (907) 224-3445
City Clerk (907) 224-4046
Community Development (907) 224-4049
Utilities (907) 224-4050
Fax (907) 224-4038