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Financial Report Fiscal 2004CITY OF KALISPELL, MONTANA ANNUAL WAX we REPORT FISCAL YEAR 2004 July 1, 2003 - June 30, 2004 CITY OF KALISPELL ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Letterof Transmittal................................................................................................................................................... 3-5 Elected Officials............................................................................................................................................................ 6 FINANCIAL SECTION Management's Discussion and Analysis................................................................................................................... 7-20 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets...........................................................................................„................................. 21 Fund Financial Statements: Balance Sheet — Governmental Funds...................................................................................................... 23 Reconciliation of the Balance Sheet — Governmental Funds to the Statement of Net Assets............ 24 Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds..... 25 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities........................................................................... 26 Saatci..cui .IA i.c. Assets - A A Vt1111G......a............................................................................................. s. Statement of Revenues, Expenses, and Changes in Fund Net Assets — Proprietary Funds .............. 28 Statement of Cash Flows — Proprietary Funds........................................................................................ 29 Statement of Fiduciary Net Assets — Fiduciary Funds_........................................................................ 30 Notes to the Financial Statements.................................................................................................................. 31-69 Required Supplementary Information: Budgetary Comparison Schedule — General and Major Special Revenue Funds .................................... 70 Budgetary Comparison Schedule — Budget to GAAP Reconciliation — General and Major Special Revenue Funds............................................................................................................................... 71 CITY OF KALISPELL ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Other Supplementary Information: Combining and Individual Fund Statements and Schedules. Combining Balance Sheet — Nonmajor Governmental Funds.............................................................. 72-78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds............................................................................................................ 79-85 Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual — Major Debt Service and Capital Project Funds ............................................. 86 Schedule of Revenues, Expenditures, and Changes in Fund Balances -- Budget and Actual — Nonmajor Governmental Funds....................................................................... 87-95 Combining Statement of Net Assets — Internal Service Funds.............................................................. 96 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Assets — Internal Service Funds............................................................................................................................ 97 Combining Statement of Cash Flows — Internal Service Funds............................................................ 98 Schedule of Federal/State Grants, Entitlements and Shared Revenues ............................................... 99 Cash Reconciliation................................................................................................................................. 100-101 STATISTICAL SECTION .. .......................................... ............................................................................................ 102-106 -To o VUI� I 'I'll k I ION The City Of Kalispell Incorporated 1892 Telephone (406)758-7700 FAX (406)758-7758 Post Office Box 1997 Kalispell, MT Zip 59903-1997 December 13, 2004 To the Honorable Mayor, members of the City Council, and Citizens of the City of Kalispell, Montana State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, the annual financial report for the City of Kalispell, Montana for the fiscal year ended June 30, 2004, is submitted for your review. The Finance Office prepared this report. Responsibility for the accuracy and completeness of the presented data, including all disclosures, rests with the City. We believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain an understanding of the City's financial affairs have been included. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Kalispell's MD&A immediately precedes the City's basic financial statement within this report. Reporting Entity and Services Provided The City of Kalispell, incorporated in 1892, is located in the western part of the state, which is considered to be one of the top growth areas in the state. The City of Kalispell is empowered to levy a property tax on both real and personal properties located within its boundaries. It also is empowered by state statute to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the governing council. The City of Kalispell is operated under the council-manager form of government. Policy -making and legislative authority are vested in a governing council consisting of the mayor and eight other members. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager, The City Manager is responsible for carrying out the policies and ordinances of the governing council, and for overseeing the day-to-day operations of the City. The council is elected on a non -partisan basis. Council members are elected by district to serve four-year staggered terms, with four council members elected every two years. The mayor is elected at large for a four-year term. All significant operations of the City, as defined by the National Council of Governmental Accounting, Statement 43, have been included in the accompanying financial statements. The City provides a full range of municipal services including police, fire, building safety, planning and zoning, city court, parks and recreation, streets, community development and general administrative services. The City also operates as Enterprise funds: water, sewer, ambulance and solid waste. In addition, the City presents financial data for three component units on the combined statements. The Kalispell Parking Commission is a discretely presented proprietary type component unit. Tri City Planning and the Downtown Business improvement District are discretely presented governmental type component unit. The annual budget serves as the foundation for the City of Kalispell's financial planning and control. All departments of the City of Kalispell are required to submit requests for appropriation to the City Manager. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the council for review. The council is required to hold public hearings on the proposed budget and to adopt a final budget. The appropriated budget is prepared by fund, function, and department, Budget -to -actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual 'budget has been adopted. For each major governmental fund the comparison is part of the basic financial statements. Accounting System and Budgetary Control The City's accounting records for general governmental operations are maintained on a modified accrual basis. Under this method, revenues are recorded when measurable and available; expenditures are recorded when services or goods are received and the liabilities are incurred. Accounting records for enterprise funds are recorded on the accrual basis. Under this method, revenues are recorded when the services are performed; expenditures are recorded when the goods or services are received and the liabilities are incurred. In developing the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal controls are designed to provide reasonable assurance regarding the safeguarding of assets and the accuracy and reliability of accounting data used for preparing financial data and maintaining accountability for assets. Budgetary control is maintained by an annual appropriation system. The Mayor and Council evaluate the budget proposals of the various City departments to determine the operating level of the operating and public service programs. After giving due consideration to the input received from the citizens, the City Council adopts the budget. The budget is appropriately controlled through an on line accounting system. The control is decentralized to the point that individual department heads are responsible for expending within budgetary limits. Cash Management 'The City's demand deposits are interest bearing money market accounts. The City also utilizes the Statewide Investment Pool (S.T.I.P), and obligations of the U.S. Treasury for cash temporarily idle during the year. Rates of return vary based on markets. Insurance The City joined other Montana cities and towns to form aself-insurance pool offering workers compensation and liability oovcrage. in March 1993, the Montana Municipal Insurance Authority issued tax exempt refunding bonds for $4,410,000 to fund the liability program reserves. Debt service on the bonds is expected to be paid through interest earnings on bond proceeds and other funds of the authority. Refunding Bonds for worker's compensation were sold in February 1994 bringing the total debt for the MMIA Worker's Compensation pool to $6,614,753. Postemployment Benefits The City of Kalispell provides pension benefits for substantially all of its full-time employees. These benefits are provided through the Montana Public Employees' Retirement System (PERS); Municipal Police Officer's Retirement System (MPORS): and the Firefighters' Unified Retirement System(FURS), The City of Kalispell has no obligation in connection with employee benefits offered through this plan beyond its matching contributions. Additional information on the City of Kalispell's pension arrangements can be found in the notes to the financial statements. Pros ects for the Future Since November 1986 and the passage of Initiative 105 (to limit certain property taxes to the 1986 levels) to the recent passage of SB 184, the ability of the City to raise revenue for basic services is increasingly difficult. The legislature, with SB184, has lowered tax rates forcing the City to increase mill levies to maintain the same level of revenue. The City's financial position has improved considerably over the last several years. The additional revenue from increased taxable valuation and other sources, such as gambling, has brought our milled funds out of a deficit position allowing us to build cash reserves. The City's cash reserves vary between 10% and 20% of appropriations. State law allows for reserves of 50%. Reserves provide for cash flow between tax revenue receipts to keep the City from having to borrow funds for operations. Additional revenues generated by increased taxable valuation come with the additional costs of an increased service area. The City of Kalispell's Police and Fire Departments, Courts system, Building Department, Public Works and Parks have felt the increased pressure from the influx of people to Flathead County. These pressures impact the budgets of all departments, The outlook for the City of Kalispell is to continue providing basic services while looking for additional ways to fund the increasing costs of those services. Acknowled rents In conclusion, I am able to report that the City of Kalispell is in sound financial condition and should continue to enjoy good financial health. I wish to express my thanks to Amy Robertson and Carol Kostman of the finance department as well as the administrative staff of the various departments. Without your help and input this report would not be possible. I would also like to give recognition to the mayor, governing council, and the city manager for their consistent support for maintaining the highest standards in the management of the City of Kalispell's finances. In accordance with Section 7-6-4111, MCA I hereby transmit the City of Kalispell Annual Financial Report as of June 30, 2004 for the fiscal year then ended. Resp�eully submitt , AZ3-Z V f Date Rick Wills Deputy Finance Officer CITY OF KALISPELL ANNUAL FINANCIAL REPORT JUNE 30, 2004 ELECTED OFFICIALS Manager/Council form of Government Mayor Pamela B. Kennedy 1/1/2006 Council members: Kari Gabriel Ward 1 1/1/2008 Jim Atkinson Ward 111 1/1/2006 Robert Hafferman Ward 1 1/1/2006 Randy Kenyon Ward 111 1/1/2008 Bob Herron Ward H 1/1/2008 M. Duane Larson Ward IV 1/1/2008 Hank Olsen Ward H 1/1/2006 Jason Peters Ward IV 1/1/206 Other City Officials: City Manager Chris Kukulski Attorney Charles Harball Police Chief Frank Garner Fire Chief Randy Brodehl Finance Director Amy Robertson City Judge Heidi Ulbricht Public Works Director James Hansa Parks Director Michael Baker Community Development Director Susan Moyer Deputy Finance Officer Rick Wills FINANCIAL SECTION Managements Discussion and Analysis,.... .... ....................... .......... ........................................... 7-20 Basic Financial Statements ............... .......... .......... ............................................ .................. .......... 21-30 Notes to the Financial Statements ......... ......... ............................. ............................................. ..... 31-69 Required Supplementary Information........................................................................................... 70-71 Other Supplementary Information ............ ....................... .................... ..._........ .................... ....... 72-101 MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Kalispell, we offer readers of the City of Kalispell's financial statements this narrative overview and analysis of the financial activities of the City of Kalispell for the fiscal year ended June 30, 2004. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 3 - 5 of this report. FINANCIAL HIGHLIGHTS ➢ The assets of the City of Kalispell exceeded its liabilities at the close of the recent fiscal year by $61,275,409 (net assets). Of this amount, $14,783,060 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors ➢ As of the close of the current fiscal year, the City of Kalispell's governmental funds reported combined ending fund balances of $8,357,397, a decrease of $1,810,864 in comparison with the prior year. This decrease can be attributed to the $2,545,527 capital outlay expenditure for the Woodland Park Aquatic Facility out of the Pool Construction fund. ➢ At the end of the current fiscal year, unreserved fund balance for the general fund was $1,134,330, or 18,2 percent of total general fund expenditures. ➢ The City of Kalispell's total debt increased by $911,190 during the current fiscal year. This increase can be attributed to the extension of utilities south on Highway 93. ➢ For fiscal year 2004, the City of Kalispell revenues for governmental activities (before special items) exceeded expenses by $2,085,814 (change in net assets). ➢ In the City's business -type activities, program revenues increased $1,930,581 (or 27 percent); while expenses increased $487,519 (or 9 percent). AN OVERVIEW OF THE FINANCIAL STATEMENTS There are three main components to the City of Kalispell's financial statements: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. Other supplementary material is included in this report in addition to the basic financial statements themselves. The City of Kalispell intends for this discussion and analysis to be used in conjunction with the basic financial statements and other material as an introduction and also as a means to help the user better understand the information. Government -wide Financial Statements The government -wide financial statements are designed to provide readers with a broad overview of the City of Kalispell's finances. The way information is presented in these statements is comparable to how the financial information of a private -sector business would be presented. The statement of net assets presents information on all of the City of Kalispell's assets and liabilities. The difference between these two (assets minus liabilities) is reported as net assets. Net assets can be a useful too] in evaluating the financial health of an entity. A substantial decrease in net assets may be a sign of deteriorating financial position. The change in net assets during the most recent fiscal period is presented by the statement of activities. The statement of activities reports changes in net assets at the time the event takes place without regard to the corresponding cash transaction. This results in some revenues and expenses being reported in this statement that will not result in cash flow until a future fiscal period. Some examples of this would be uncollected but earned taxes and earned leave benefits. The government -wide financial statements of the City of Kalispell are segregated to distinguish between functions supported predominantly by taxes and intergovernmental revenues (governmental activities) and those that are intended to recover the majority of their costs through user fees and charges for services (business -type activities). The governmental activities of the City of Kalispell include general government/administration, public safety, public works, culture and recreation, and housing and community development. The business -type activities of the City of Kalispell include water distribution, sewer collection and treatment, solid waste collection, and ambulance service. The government -wide financial statements include, in addition to the primary government described in the above paragraph, a legally separate parking commission, a legally separate Tri-city planning office, and a legally separate Business Improvement District. The financial information of these component units is reported separately on the Government -wide financial statements. The government -wide financial statements can be found on pages 21 -22 of this report. Fund Financial Statements The City of Kalispell, like most other governmental entities, uses fund accounting. Funds are set up to account for specific activities or objectives of the government. Funds also aide in ensuring compliance with legal requirements. The City of Kalispell categorizes its funds as either governmental, proprietary, or fiduciary. ➢ Governmental funds correspond with the functions reported as governmental activities in the government -wide financial statements. Governmental fund financial statements, by focusing on near -term inflows and outflows of spendable resources, may be more useful in evaluating a government's short-term fiscal health than the government -wide financial statements. A reconciliation has been prepared to help users more easily compare the governmental fund balance sheet to the government - wide statement of net assets and the governmental fund statement of revenues, expenditures, and changes in fund balance to the government -wide statement of activities. These reconciliations can be useful in contrasting, comparing and understanding the long-term impact (government -wide statements) of near -term decisions (governmental fund statements). The City of Kalispell maintains numerous individual governmental funds. The governmental fund balance sheet and statement of revenues, expenditures, and changes in fund balance present information separately only for funds which are considered major. Major funds are determined by a formula which considers the percentage of total governmental assets, liabilities, revenues, and expenditures contained in each individual fund. The City of Kalispell has four major governmental funds; the General Fund (always a major fund), the Community Development Loan Revolving (special revenue) Fund, the Special Improvement District 343 (debt service) Fund, and the Pool Construction (capital project) Fund. All non -major funds are presented as a group. The City of Kalispell adopts an annual appropriated budget for its funds. A budgetary comparison statement has been provided for the general fund and each of the major special revenue funds to demonstrate compliance with this budget The basic governmental fund financial statements can be found on pages 23 - 26 of this report. ➢ The City of Kalispell maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. Water, sewer, solid waste, and ambulance make up the City of Kalispell's enterprise funds. The City of Kalispell uses internal service funds to accumulate and allocate its data processing and health insurance transactions internally among its various functions. Under the old reporting model internal service funds were reported as proprietary funds because they recovered most of their cost through user fees from other funds. Under this new model these funds are eliminated through an allocation process and categorized as either a governmental or business -type activity. Because both of the City of Kalispell's internal service funds benefit governmental more so than business -type functions, they have been included within the governmental activities in the government -wide financial statements. Information in the proprietary fund financial statements is of the same type as that provided in the government -wide financial statements, however, it is more detailed. Individual fund data is provided for all of the enterprise funds. The basic proprietary fund financial statements can be found on pages 27 — 29 of this report. ➢ The City of Kalispell maintains two funds to account for resources held by the government for the benefit of outside parties. These fiduciary funds are not reflected in the government -wide financial statements because the resources are not available to support the City of Kalispell's own programs. The City of Kalispell must ensure that the assets reported in these funds are used for their intended purpose. The accounting method used for fiduciary funds is similar to that used for proprietary funds. The basic fiduciary fund financial statements can be found on page 30 of this report. Notes to the Financial Statements The information contained in the government -wide and fund financial statements is meant to be used in concurrence with the notes to the financial statements. The notes present further detail of the data provided by these statements. The notes to the financial statements can be found on pages 31 - 69 of this report. ANALYZING THE CITY AS A WHOLE As mentioned prior, net assets can be an important indicator of an entities financial well-being. For the period ending June 30, 2004, the City of Kalispell's assets exceeded liabilities by $61,275,409. CITY OF KALSPELL'S NET ASSETS Governmental Business -type activities activities Total Current and other assets 2003 $15,639,970 2004 $12,451,219 2003 $10,655,370 2004 $15,179,063 2003 $ 26,295,340 2004 $27,630,282 Capital assets -net 18,204,233 _ 22,930,205 27,130,462 29,609,093 45,334,695 52,539,298 Total assets 33,844,203 35,381,424 37,785,832 44,788,156 71,630,035 80,169,580 Long-term liabilities outstanding 7,881,285 6,209,661 6,576,264 8,134,802 14,457,549 14,344;463' Other liabilities 1,933,491 1,522,368 363,653 3,027,340 2,297,144 4,549,708 Total liabilities 9,814,776 7,732,029 6,939,917 11,162,142 16,754,693 18,894,171 Net assets: Invested in capital assets, net of related debt 12,489,553 17,437,973 20,819,432 20,828,734 33,308,985 38,266,707 Restricted 8,369,130 6,608,267 8,470,545 1,617,375 16,839,675 8225,642 Unrestricted 3,170,744 3,603,155 1,555,938 11,179,905 4,726,682 14783,060 Total net assets $24,029,427 $27,649,395 $30,845,915 $33,626,014' $54,875,342 $61V5,409 EJ Investment in capital assets (e.g., land, buildings, machinery, and equipment), net of any related debt still outstanding on those assets makes up 63% of the City of Kalispell's net assets. These capital assets are used to provide services to the citizens of Kalispell and are not spendable. Therefore, repayment of the debt related to capital assets must be provided from other sources. Restricted net assets equal $8,225,642 or 14%of total net assets. $1,617,375 of this is restricted in the enterprise funds to remain in compliance with bond agreements. The $6,608,267 restricted in governmental activities consist of $533,079 for debt service, $283,732 for capital projects, $324,662 for public safety, $2,445,480 for public works, $75,244 for parks, and $2,946,070 for community development. The remaining balance of unrestricted net assets ($14,783,060) may be used to meet the City of Kalispell's ongoing obligations to citizens and creditors. At the end of fiscal year 2004, the City of Kalispell is able to report positive balances in all categories of net assets. Governmental activities. Governmental activities increased the City of Kalispell's net assets by $3,408,008 accounting for 55% of the City's growth in total net assets. A special item reported of $1,322,194, related to the Stream contract buyout and reported in the Stream debt service fund, accounts for approximately a third of this increase. Further explanation of this special item can be found in part W. of the Notes to the Financial Statements. Stream also paid off its loan from the City as part of the agreement with the City when they closed the call center. This loan payoff (charge for services-UDAG fund) is the other major contributor to the governmental activities increase in net assets. Business -type activities. Business -type activities increased the City of Kalispell's net assets by $2,737,538, accounting for 45% of the growth in the City's net assets. Charges for services revenue increased 20% or $1,271,121. The City's Water and Sewer fund account for the majority ($1,052,780 or 83%) of this increase. This significant increase in charges for services resulted from increased rates, combined with an increase in customer base and consumption. Infrastructure contributions from developer's in the Water and Sewer funds were $1,244,080 or another 46% of the increase in net assets attributed to business -type activities. 11 CITY OF KALISPELL'S CHANGE IN NET ASSETS Revenues: Governmental activities 2003 2004 Business -type activities 2003 2004 Total 2003 2004 Program revenues: Charges for services $ 3,461,936 $ 4,577,743 $ 6,506,360 $ 7,777,471 $ 9,968,286 $ 1.2,355,214 Operating grants and contributions 1.538,285 1,046,260 47,091 65,867 1,585 376 1,102,127 Capital grants and contributions 309,906 932,322 623,396 11274,080 933,302 2,206,402 General revenues: Property taxes 4163,922 4,476,969 - 4,163 922 4,476,969_ Other taxes 290,319 290,319 Grants and contributions not restricted to specific Programs 2,036,192 2,075,409 2,036,192 2,075,409 Other 381,167 $ 241,658 122,487 111,486 603,654 353;044 Special Item $ 1,322,194 Total revenues 12,181,727 14,672,455- 7,299,324 9,218,904 19.481,051 23 891,359 Expenses: General government 1,541,939 1.,703,780 1,541,939 1,703,780 N ubilc saTeTy `f,`JLLI Public works 1,540,717 .b,,1HA.I k130 1;618,092. 4,L'LL, U,33 1.640,717 - 0,14tl,kJ.�YCt.. 1,618,992 Culture and recreation 1.160,081 1,219,456, 1,160,081 1,219,456 Housing and community development 1,162,224 768869 1,162,224 768,869 Miscellaneous 261,437 334315 261,437 334,315 Interest on long-term debt 5347259 373,099 534,259 M7 099 Unallocated depreciation Water 1,368,745 1,646,714 1,368,745 1 645'714 Sewer 2,874,950 2,971,947 2,874,950 2,971947 Solid waste 516,693 517,419 616,693 517,419 Ambulance 1,233,459 1,346,286 1,233,459 1,346,286 Total expenses.. 11,122,690 11,264,447 5,993,847 6,481,366; 17,116,537 17,745,813' Increase in net assets before transfers 1,069,037 3,408,008 1,305,477 2,737,538 2,364 614 6,145,546" Transfers Increase in net assets 1,059,037 3,408,008 ' 1,305,477 2,737,5$8 2,364 514 6,145,546 Net assets - beginning (as restated) 22.970,390 : 24,241,387 29,540,438 30,888,476' 52,510,828 55,1291863: Net assets - end ^� $ 24,029,427 $27,649,395 $ 30,845,915 $ 33,626,014- $ 54,875.342 '$ 61,275,409` �1, ANALYZING THE CITY'S INDIVIDUAL FUNDS Governmental Funds The focus of the City of Kalispell's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources (fund balance). Unreserved fund balance is a useful tool when assessing the net resources a government has available to spend at the end of a fiscal period. At the end of fiscal year 2004, the City of Kalispell's governmental funds reported combined ending fund balances of $8,357,397, a decrease of $1,804,103 in comparison with the prior fiscal year. Of this amount $533,079 is reserved for debt service and $90,000 is reserved for advances to other funds. Reserved portions of fund balance are not available for new spending. The general fund is the chief operating fund of the City of Kalispell. At the end of fiscal year 2004 unreserved fund balance of the general fund was $1,134,330. Unreserved fund balance as a percentage of total fund expenditures can be a good tool to use to measure the liquidity of the general fund. For fiscal year 2004, unreserved fund balance represented 18.2% of total general fund expenditures. The increase in the fund balance of the general fund during fiscal year 2004 was insignificant. The Community Development Loan Revolving fund is a special revenue fund used to make low interest housing and commercial loans within a designated area. Principal and interest from these loans or the purchase and subsequent resale of a fixed asset are the only sources of revenue in this fund. During fiscal year 2004 the fund balance increased a modest $76,515 from $646,709 to 723,224, however, $343,357 of this total has been designated for specific redevelopment projects. Special Improvement District 343 (debt service) fund was established by the City of Kalispell in fiscal year 2001 for the purpose of servicing the debt attributable to the reconstruction of Sunnyview Drive. This project was funded through the sale of bonds and a small contribution from the City of Kalispell. The fund balance decreased to $99,968 from $111,082 during the fiscal year 2004 operating period. This decrease was the result of debt service expense exceeding the tax proceeds used to pay the debt service. The City of Kalispell established a capital project fund in fiscal year 2002 for the construction of a new aquatic facility and skateboard park at Woodland Park. Construction of this voter approved facility was expected to be completed in fiscal year 2004. The facility was completed and opened for operations in June of 2004, however, there are still some minor problems expected to be worked out in the fall of 2004, Fund balance remaining at the end of fiscal 2004 was $148,601. All remaining funds (fund balance) are expected to be expended for construction in fiscal year 2005, 1.3 0 gengovt pubastny pub Woks cu4urehaa canard. miss ha Vt daM A. MV @ipaM Md PM MRaKnM-Gsr M90W1ACROVes for RonN y4ar 2004 ODOM 5=00 40000W 2 30000IX1 2 2AR70W loom 0 geng.t pubeafaty pub Works UAUWres ppholdly M" Ubt Berta ActhMy 14 Ravanua by Soama - G6yanan,oW Aadvglea MUI poor 2003 oln« Grants surd coal not 0% r4st. 17% Prtpaiy lamb 389y Cholgts lorse"t. 29% G 0-14 end c,mt 13% CeP 0renlc attl poN Pavanua by 8aurca-CMavomrn"MI Aativlttea Raaal My 2004 Gram&and awl not 01har fast. 3% Ill% Proparlytaeps 34% Chargac lar s-f- 33% QP gram* and pans 8% Cap goons and pant 7% Prvprietury Funds The City of Kalispell's proprietary funds financial statements provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net assets of all proprietary funds at the end of the fiscal year amounted to $11,179,905. Of this amount, $2,352,754 was attributable to the water fund and $8,281,501 to the sewer. The total growth in net assets of all proprietary funds equaled $2,736,177, The water funds increase in net assets for fiscal year 2004 was $817,944, however, only $132,529 of this was attributable to operations (operating income). The sewer funds net assets increased $1,785,297, with $233,011 of the total from operations. Hookup fees, a non -operating revenue of the Water and Sewer funds accounted for 42% or $1,135,604 of the proprietary fund increase in net assets. Other factors concerning the finances of the water and sewer funds have already been addressed in the discussion of the City of Kalispell's business -type activities. 15 Erpensce and Pmprom Revanuas . Buslneas-type Aetivif les tar 4d el year 2003 4090000 3500000 3000000 2500M 2000900 " 1600000 1000000 5o0000 0 wager sewer Old waste M.W.a Adlvay Pxpenaes anal Pmprare Rave m-eealneawypa Aclivilles for 9=21 year2004 Wood 4500900 4000000 M000 3000000 za00a90 " 2000000 1500000 1000000 600000, 0 water S.— sold weals wtwtance Aa11Wy GENERAL FUND BUDGETARY HIGHLIGHTS Rsvenr¢s by Sparce �Bvsnesaypa A<N+dsa eu�flesa�vau Zap] nvssbnent2emlaea ix Reve—ey Snorts. Bwlneswlypa AOWe. bresaal .or 2904 Over the course of the year, the City of Kalispell's general fund budget was revised several times. The original general fund expenditure budget was increased a total of $40,000 to the final amended budget figure of $6,477,890. The difference between the original and the final budget was a transfer of funds which had already been designated for construction of the new Fire Hall to the related capital project fund. Since actual expenditures during the year were $87,748 below the original budget amounts, this amended amount did not draw from the existing fund balance. m CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At the end of 2004, the City of Kalispell has $52,539,300 invested in a broad range of capital assets, including police and fire equipment, buildings, land, park facilities, garbage collection equipment, and water and sewer lines. The City of Kalispell has not yet booked some infrastructure; therefore, the dollar amount related to these assets is not included in the total. These assets, which include streets, will represent a significant increase in the capital assets of the City of Kalispell when booked. Major capital asset events during the fiscal year 2004 included the following: ➢ Over $500,000 worth of new, and upgrades to existing City sidewalks. Most of this was paid for by a Montana Air and Congestion grant. ➢ $151,884 was spent to replace City Halls' HVAC system. ➢ Streetscape projects cost $559,541. ➢ The new aquatic facility/skateboard park cost for fiscal year 2004 was $2,545,527. ➢ Improvements to the Kalispell Youth Athletic Complex donated to the City totaled nearly $1,000,000. ➢ Meridian Trail ISTEA project additions totaled 192,866 mostly grant dollars. ➢ Three police patrol cars were added at a total cost of $56,895, ➢ An open bay equipment storage facility was completed at the City shop complex valued at $137,265. ➢ Two new water mains were put in service at a cost to the City of $321,000. Mains valued at $303,977 were contributed to the City by developer's. ➢ The city replaced fire hydrants at a total cost of $101,115. Developer's contributed $42,959 worth of new fire hydrants, and the cost associated with putting them into service. ➢ The water department continued a radio read meter project. The goal is to replace all the non radio read meters by 2005. These new radio read meters are more accurate and only have to be driven by for their consumption reading to be taken. Total cost of this project for fiscal year 2004 was $306,618. The City also installed new meters valued at $214,358 that were not part of the radio read project. ➢ Sanitary sewer mains and lift stations contributed by developer's totaled $612,531. ➢ Storm water collection mains and pump stations contributed by developer's totaled $284,366. ➢ Equipment was replaced at the Waste Water Treatment Plant equaling $90,000. 17 CITY OF KALISPELL'S CAPITAL ASSETS (NET OF DEPRECIATION) Governmental Business -type Total activities activities 2003 2004 2003 2004 2003 2004 - Land $ 2,193,522 $ 2,193,522 $ 238,768 $ 238,768 $ 2,432,290 $ 2,432,290 Buildings $ 6,783,045 8,126,748 219,806 203,918 $ 7,002,851 8,330,666 ]mprovements not buildings $ 6,191,373 10,849,457 $ 6,191,373 10849,457 Machinery and equipment $ 1.865,781 1,732,926 792,025 679,424 $ 2,657,806 2,412,350 Construction in Progress $ 1,170,512 27,552 328,614 2,421,930 $ 1,499,126 2,449,482 Source of Supply 454,806 : 437,238 $ 454,806 437,238 Pumping Plant 1,061,264 1,011,541 $ 1,061,264 1;011,541' Treatment Plant 6,019,942 5,304,442r $ 6,019,942 5304,442'' Transmission and Distribution 14,402,257 15,511,406 $14,402,257 15,511,406 General Plant RFR 580 646,442 $ 665,580 646,442 Storm Sewer system 2,944,402 3,153,986 $ 2,944,402 31153,986 Total $18,204,233 $22,930,205 $27,130,464 $29,609,095 $45,334,697 $52,539,300 Governmental activities machinery and equipment includes the assets of the City's Data Processing fund, Additional information on the City of Kalispell's capital assets can be found in note IV part D on pages 48 -51 of this report 18 Debt At the end of fiscal year 2004, the City of Kalispell had total long-term debt outstanding of $14,680,969. Of this amount, $3,475,000 comprises debt backed by the full faith and credit of the government and $5,951,391 represents bonds secured solely by specified revenue sources (i.e., revenue bonds). The remainder consists of $2,037,000 outstanding on a SRF loan for construction of the wastewater treatment plant, another SRF loan for $1,151,748 which financed the extension of sewer lines south on Highway 93, $1,341,912 of special assessment debt for which the City of Kalispell is liable in the event of default by the property owners subject to the assessment, and $493,290 of loans for the purchase of equipment. The City of Kalispell also has debt outstanding on the books of $230,628 for the financing of the Courtyard Apartments. This debt is paid for by the rent proceeds attributed to those apartments. CITY OF KALISPELL'S OUTSTANDING DEBT Governmental Business -type Total activities activities General obligation bonds $ 3,675,000 $ 3,475,000 $ 3,675,000 $ 3,475,000.. Revenue bonds $1,903,011 408,379 3,962,353 6,543,012 5,865,364 5,951,391 SRF loans 2,235,000 3,188,748 2,235,000 3,188748 Assessments $1,496,139 1,341,912 1,496,139 1,341,912 Contract debt/loans $ 543,541 675,319 63,250 48,599 606,791 723,918 Total $ 7,617,691 $ 5,900,610 $ 6.260,603 $ 8,780,359 $ 13,878,294 $14,680,969 Other obligations of the City of Kalispell include accrued vacation pay and sick leave. More detailed information about the City's long-term liabilities is presented in the notes to the financial statements. Additional information on the City of Kalispell's long-term debt can be found in note IV part E on pages 52 - 59 of this report. IN ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES ➢ Flathead County's unemployment rate (unadjusted) stood at 5.4% as of June of 2004, which is an improvement from the June 2003 rate of 5.8 percent. This is 18% higher than the State's unemployment rate of 4.6 percent, but compares favorably to the nations rate of 5.8 percent. ➢ The employment growth rate for Flathead County has averaged less than 1% between June 2000 and June 2004. During this same period the County's unemployment rate increased from 5.2% to 5.4%. ➢ Flathead County and Northwest Montana have been experiencing rapid population growth for many years. The City of Kalispell's population grew 19.4% between the 1990 and 2000 census, and is estimated to have grown 8.7% from 2000-2002. Flathead County's population growth is projected to be 1.5% to 21/6 per year for the next 10 years. All of these factors were considered in preparing the City of Kalispell's budget for the 2004 fiscal year. During fiscal year 2004, unreserved fund balance in the General Fund increased to $1,134,330. The City of Kalispell has appropriated $256,746 of this amount for spending in the 2005 fiscal year budget. It is intended that this use of available fund balance will avoid the need to raise taxes or charges during the 2005 fiscal year. Water and sewer rates were increased 10% and 4%, respectively, for the 2005 budget year. These rate increases were recommended by the recently completed rate study conducted by an outside firm and adopted by the City Council. The rates were deemed necessary for the City to finance many current and future water and sewer infrastructure and capacity replacement needs as identified by the recently completed facility plan. Request for information This financial report is designed to provide a general overview of the City of Kalispell's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Kalispell, Finance Director, P.O. Box 1997, Kalispell, MT 59903-1997. 20 BASIC FINANCIAL STATEMENTS City of Kalispell, Montane STATEMENT OF NET ASSETS A. of June 30, 2004 Primary Gavarr4 m _ _ Cc nerd Units Primary C-roruenl Component Units GrWomenlal Business -type Govenrnonfef Parking Governmental Busin-type Govemmental Parking Anles AMLbes Toil Type Commission AcWtles Activities Total Type C.-Assron Aaseto Liabilfdas C Asse Current fi Inptlaa Cash and IrWeatrabols S 7.781,289 $ 11,056.921 $ 18,837.210 $ 173,233 37,078 Accountspayabie $ 535A01 $ 335,015 $ 870.016 $ 8,444 $ 14,010 Taxes receivable, net 1,888,118 61,656 1,949.774 - Accrued psyrol 185,491 47,444 232.935 8,165 1,696 Accounts receivable, rdt 698,162 598,152 - 91797 CUnsof portion of ItterfuW Payable 20,E 20,000 Due from StatelFederal 190,681 1,1 51,748 1,342,429 - Due to o1- 15,533 1,727,965 1,743,498 - - DuefromCourlN 829,101 107,905 937.00E Current portion of long -worn debt 431,046 896.916 1':W7962 - Due fromBoard oflnveesllnenLS 151,835 372,921 524.756 Purchase contract - - 9,876 Current portion of notes recel"We $9,996 - 89,99E - - retainage-We to tona'acior 214.133 - 214,133 - - Due(romo4-funds - - Est lability for claims 141,164 141,164 Currenlporr. of lnterfund recevaWe 20,001 20,001 - Total Current LraW9aes S 1,522,368 $ 3,027,340 $ 4,549,708 S 16,60g $ 25582 lMerrael balances (1,36}) "1,36! Largfenn debt 5,469,765 7,883,443 13,353,208 Prepaids 51,681 61.681 - 11100 IMerfund payable 70,W0 70,000 - Doe fromoiners 19,901 3225 20,226 Compensew absences 739,896 181,359 921,255 49,429 5,714 Total Currerd Assets 5 1f,031.242 S 13,561,688 S 24,592,930 $ 173,233 $ 47A75 Total Noncurt" Wab195es 6,209,661 8,134,802 14,344,463 4g,429 5,714 Total liabilities 7,732,029 3 11,162,142 $ 18,894,171 S 66038 $ 31,29E NoncurrentAb6ets Restricted Assets Cash and im'estrnenls 327,385 1,817,375 1,944,760 - - I,m1dw 7" W _ 7n nnn - Loans receivable 1,022,592 1,022,592 Ca=assets- Depreciable, Net 201709,131 26,939,100 47,648,23t 16,044 31,566 Capital assets -Lard 2,193,522 248,063 2,441,585 - Cannoul assets- Construction In progres 27,652 2,421,930 2449,482 Total Now"rem Assets S 24,350,182 $ 31,226,468 S 55,576.650 $ 16A44 S 31,566 Total Assets S 35,381,424 3 44?88,156 S 80,169.580 S 189,277 S 79,541 aee Accompa-rytng NolesbiMmcle Sietert,nta 21 Not Aaeete I-Sted in Cabbal assets. net of relate $ 17,437,973 $ 20,828,734 $ 38.266,707 $ 16,044 $ 31.566 Restrictedfor: - Debtservice 533,079 1,097,482 1,630,581 - - Caplfel projects 263,732 579,893 WU25 - - P,diFc.4alaN 17460 - 32d$62 Public Woks 2.445.480 - 2,445,480 - - Culture and Recreation 75,244 - 75,244 - - HoasiN and CommurriN Devebpmerd 2,946,070 - 2.946,070 Urueatri tWd 3,603,155 11,179,905 14,783060 107.195 16,679 Total Not Asset& 3 27,649,395 $ 33626,fl14 S 61,275,409 $ 123,239 $ 48,245 City of Kalispell, Montana STATEMENT OF ACTIVITIES For the fiscal year ended June 30, 2004 Not(Expenees) Revenues and Change. 1.N to 1 Program Revenues Primary Government Component Unite Operating Capiti Reainasa- Charge. for Grants and Grants and G-ranosntsl type Parking Fundona/pma€emg Ex Services Contribution COntribufione Acf"vifles Actlyffi., Total Governmental Commission primary Gove -.t: Goverrrnental acwties: General Government 1.703,780 412126 (1,291,854) (1,291,654) PLbbc Safety 5,215,93E 883:711 879,988 144215 (3,338,029) (3,338,029) Pubkc Works 1.618,992 1,208196 409,885 (911) (911) Co" and Recreation 1,219,456 473,456 22.757 177.154 (546,089) (546,089) nousirg and Comnanity©evelapmert 768,869 1.342,673 61,015 - 654.B19 654819 Miscetleneaus 334316 - - - (334,315) (334:315) entered E.xpetrea 373:099 - - - (373,099) (373,099) UnalbcateE Depreciation - Debt SeNce 257.588 62,500 20t,068 521.156 521,15E Total Gwv real AcWt.. $ 11,264,447 $ 4,577,743 8 1,046,260 S 932322 $ 14,708,122) $ 4�708,1222) Business -tree Wivill": $ S $ $ vow 1,646,714 2,057,785 347,183 799,254 799,254 ceapr 2,971,-7 3,738028 926,897 1,692,978 1,692,978 SOAdWaste 517,419 579,894 62,475 62,475 Anthance 1,346286 1,361,764 55,867 71,345 71,345 TMI business -type acUbes $ 6.481.36E $ 7.777477 $ 56,867 $ 1,274,080 $ 2,626,052 $ 2,626,052 Totsi Primary Government $ i7,745,813 $ 12,355,21A S 1.102.127 $ 2,206,k02 $ (4,708.122) S 2,626,052 $ f2,082,070) Comporcem Units: C-enla1 379,217 393,624 10,00() - 24,407 P.€19rg C."'Nes. 103,662 126.700 - 23,038 Tote€ Component Units $ 482,879 $ 520,324 S 10,000 $ $ 24,407 23038 General Revenues Property Taxes fa Gerwal Purpose $ 4,476,969 $ $ 4.476,969 $ - Prop" Tares fa Specific Purpose - _ Gas Tax Grants see eritlnerrerrcs rqt resNcted to a specific program - - EnIdement 1,979.713 1,979,713 - HB 20 19,706 19,70E - SB417 19,427 - 19,427 Stet. Gs..V Lit- 51,400 - 51,400 - O4ter 5,163 - 5163 lnvesanem Eicesgs 241,553 111,486 353,044 1.725 370 Proceeds from is of had Miscelaneous _ Proceeds of loan Spedal Items 1,322,194 1.322,194 Transfers ToWperreml revenues. special items and transfers $ 8, 116,130 $ 111,48E $ 8,227616 $ 1,725 370 Change in Net Assets 3,408,008 2,737,538 6.145,54E 26,132 23A08 Net Assets - July 1, 2lb3 10,168,261 30,888,47E 41,056737 126,486 24,837 Restawaarls (6,761) (6,761) Reslawneris(GASIM4) $ 14079,887 $ $ 14,079,887 $ (29,379) Net Assets - Jury 1.2003-Restated 24,241,387 30.8MA76 55.129,863 97,107 24,937 Net Assets -June 30, 2004 S 27,649,395 $ 33,626,014 $ 61,275,409 $ 123,239 48,245 seers waearsa,s runes m rhaaux smmamx 22 City of Kail.pell, Montana Betaate Sheet Governmental Fund. 3une 30. 2004 Other fatal General Comm. Dev Sit) POOH. 6evemmantal Governmental Fund Loan Rev. 343 CONST, Fund. Runde ASSETS Currerd Asset9 Cashlvwli ¢agnwas 864,361 813.931 i 80,689 364.278 5464,430 7.597,889 Taxis Receivable -net 232,1 t0 0 1,260,647 0 395,361 1.888.118 Due F- Sta€e/Fed.ra1 550 0 0 0 190,131 19D,6S1 D. fl.. Coady 378.637 0 19A79 0 330,449 728,565 Due From Board of brvesan.M 151,835 0 0 0 7 W,636 252,371 Currentporlionof a..s r.cei.. 930 67,799 0 0 21,267 69,996 Prepaids 2SW 0 0 0 59,181 C. ,681 D. ham Mr furls 26,797 0 0 0 Z121 28,918 Due from oft. 1,500 0 0 0 iB.401 1H.90t Total curers assets 1,649,220 881730 t3g0,g15 364,278 5,601,877 10,867,920 No-ent assets: Restricted cash 0 0 0 0 327,365 327,385 Adva.es 70,000 0 0 0 0 70,000 Loan receivable 33.928 789276 0 0 193,388 1,022.592 TotalrpncurreMmels t03,928 789276 D a 526,773 1,419,877 Taal Assets 1,753,148 1,871,008 1,380,8}3 384,278 7,128.830 92,277,887 LIASIUT1Es CwTem Ludt flo.' Aaourd. Payable 115770 W933 0 71,226 256,451 530379 A-d Payroll 158:917 0 0 0 28,574 185:491 Due to other fwxk 0 0 0 0 8,917 8,917 Due to o8cers 15533 0 0 0 0 15.533 Deferred Reverxle 232.110 857,075 1,280.647 0 8t6,015 2,965.847 Curren) PoMm of LTD 2% 200 Retaimge- due to cmlbactor 6,488 3374 0 144,451 59,420 214.133 Total currem h.bififies 528,810 947702 1,260847 215,677 967370 3,92o,500 Total Llabifte5 628910 947782 i 1,280847 215,677 $67,378 Z 3,920,500 FUND PALANC Reserved W. DM somw 0 0 99,968 0 433,111 633,079 Advances 90.ODD 0 0 0 0 90,D00 UfMestxyetl reported En'. General Fuld 1, 134,330 0 0 0 0 1,134,330 Snow re�emte I 0 723,224 0 0 5,593.032 6,316,256 Capital Projem it 4s 0 0 0 148,60i 135.131 283,732 Debt Service curds 0 0 0 0 0 0 Tolaf fund bola... 1,224,330 T23224 99,968 448.WI 6,161,274 6,357.397 Tote[fiataib-and t"Lals.es 11,753,i48 seeRaj p pbl.s m-m. snalem ns 1,67t,008 1,360,8t5 364,270 7,128,650 12,277,897 23 City of Kalispell, Montana Reconciliation of the Governmental Fund, Balance Shoat to the Statement of Net Asaeb Aa of June 30, 8104 Total fund balances-gavernmentalfunds $ 8,357,397 Capikl assets used In p—hruental aditas are not financial msmces and theretwe are net reporter as assets in governmerdel fands 22.862,648 Ro"iya"S that are not a ilaNa goon enough to pay for tie r mm penod's expenditures aria oefened In the hark. 2,965,847 Irri—I--,A.o funds are used by —garrem to; 1l—Vit for the cost of prmrding medcel Insurance to employees, and 2laccountIV data processing (consorter suposm ON ."ce6) Cost. The govermemal portion of the lmatnal service had ere included Min govemmantal O($MbeF 103.810 iortg-terrakaGkkae ero rwt 0. ertd payable in She axrerd period and therefore are not repotted as labile as in the funds (61040,507) Total net asesfe - gaysrnmental aetivitiee S 27,849,395 see Mcmearrying... le FMar✓.3e1 Sh9-- CIty of Keli.p.11, Montana Statement of Revenues, Expenditures and Changes in Fund Bala - Go,., -.t.1 Fund. For the Year Ended June 30. 2004 Other Total Genera} Corms. Bev SID POOL Governmental Governmental R. Fund Loan Re, 343 CONST. Funds Fund. Taxes and Assessments $ 2244,771 $ 0 $ 160,376 $ 0 $ 3,103,874 $ 6,509,021 Licenses and P."% 1SCM 0 0 0 292,130 426,713 Intergown-ental 24931221 868 0 0 1,541,222 4,135.311 Charges for services 720,295 0 0 0 283,345 1,003,640 Fines and Fotiei area 443,646 0 0 0 0 443.646 MlscelOneous 63,602 0 0 0 632,276 695.778 imes8ner4 Eertkngs 28,929 183,401 0 14,266 935,654 1.162.252 Totat Revenres $ 6,228947 $ 194,288 $ *6 76 $" 14,209 $ 6,788,601 $ 13376,361 Ekeandnurea: General Govemmerd 1,181,677 0 0 0 142,503 1,324.180 Push, Safety 5,709,628 0 0 0 1.441,129 5,150,657 Pn6We Works 339745 0 0 0 1.175,501 1615.246 C""" and Recreeaou 746:777 0 0 0 322,729 1:071.Ow Housing and Comnn4tlty D...ud.at� 0 3,681 0 0 764,357 768,038 MlseeHarwmte 1,320 0 0 0 332,995 334,315 CaPltal OUHav 2.,802 104,073 0 2.5451527 1458,520 4,342.922 Debt SeMCe 29,370 0 171490 0 2.012,528 2.213,3m Total Eplenamres $ 6,245219 $ 107,754 $ 171,490 $ 254t5527 5 7,550,252 5 16,720,252 Excess {Denclency) of R�s Over(Urd.) Ep.,4t,.e (18272) 76,515 (17,774) (2,531,2581 E981781) (3343,891) tretlefera In 0 0 0 0 793,111 793,111 Tranefers Out (104,023) 0 0 0 (688,189) (793,112) Proceods LTD 151,1136 0 0 0 65,759 217,595 Special Hem 0 0 0 0 1322194 1,322,194 Total offerartan:ing aWACes fuses} $ 48913 $ 0 $ 0 $ 0 $ 7482875 $ 1539,780 Nei Change In Fund 8.4-te $ 30,841 $ 78,515 $ (11,114) $ (2531,259) $ 831,114 $ (1,8(1,4,103) Fund Balance Beginning of year 1,2W,450 646,709 111,1382 2.679,BW 5.530,160 10A68,261 Residml Equity Trarislers 0 0 0 0 0 0 Restatements f6,761) 0 0 0 0 (6,761) Fund Balance Eno of year $ 1224330_ $ 723224 140,601 $ 6161,274 9 8,357,397 $ee Aumgemdna Notes. FM,.Im et-ama 25 City of Kalispell, Montana Recancilhdion of ]he 9latemen2 of Revenues, Expenditures, and Changes In Fund Balances of Governmental Funds to the Stateseent of Actii,111. For the Flacel Year Ended June 30, 2004 Amounts reported for gavemmenfalacUpres in" nius, aMof acdvlfias are dMelorrt because: Net charge in fund balances -iotel go —1-1al funds $ (1.804.103) Governmental funds report capital dltay5 as oupendhires. H0WW, In the stalement ofaCNvitles, the cost of those assef5 is allocatod War their setmatad useful Wes as depreciation expense. 7Ns is the a.-Ig by stuch capltBt ownys exceeded caprodirf n in ins curers period. 3.587,849 Reverxlas in the statement of adfivifies that do not Provide current financial resIX es are not reported as re enuCs in the tends. (26,1001 Some exper>ses reported in the statenwt of actvles do not require the use of curent financial resources and therefore are not reported as axperdtures in goverrvnerrMl funds. 47,988 Long -form debt plp fnxls provide crrentfirst-iel resources to governmental funds, bul issuing deM Increases long -ten Xatnfibe in W* slatemera M M.M1assels. (217,595) Repayment of brg term debt prtncipal Is an expon6bre in tie governmental funds, but the repay—rd reduces long -tens Mabii tes in tie stelemaM of net assets. 1,840,289 Change in riot assets - stalts," of eclivni ur $ 3,408,008 see ---us nalea to Phan ISlalemen, ASSETS V-o,tAssets' C.sh end i-tmeme Taxes Re Me lble - net M. Racal vable-11et Due Pram oars, 9overmrents Total -ord assets - Noww .m assets: Resbletad Cash Imentorles Flz.d Assets Less Accumul.fad Deprecl.5.a Tuai nrxrcT.W A..t. LIASUTIE6 cuur Llabine Accounts Payable Accrued Payroll Due to oti Curren) pOdW of LTD Est tabiplyiw claims Total cunenl GatlNpaS Nanpraiaf4 t1a814lIaS: �vr4ti�v Canpensatsd absences Total Non-rd Liabilities Total LlabMbas Not Assets: Ilwaaled In capital assets, net of related debt RaMCed Net Assets Unrestricted Net Assets Total net assets Sx Kcwrperybg Notes to FYvnclel Sleremapc City of Kalispell, Montana 6latemant of Nat A. at. ProPrla .try Punch June 30, 2004 B..ine..-T aAofi ili- All Intemel S..]- Water Sewer Ambulance Solld Waste Total. Fund. $ 2.500,094 IS 8,212,586 $ 34,448 $ 308,793 $ 11,0%,921 183,600 - 17,891 43,765 6t,656 - 130,543 176,071 291,538 598,152 - 373,246 1200,646 - 59,007 11632,699 - S 3,003,883 S 9,607,194 8 325,986 4 411.565 S 13,348628 183.600 $ 406,837 $ 1,170.443 $ - $ 40,DD5 $ 1,617,3715 - 211,699 - 211,699 - 76,323,679 32,693,697 395,240 1,132,860 50,545,476 320,631 t4,785,8331 t15,308,381) (294,228) (547,941) (20,936,383) (253,274) $ i2,i56,J82 $ 18,555,769 $ 1V1,012 $ b26,014 $ si,a36,187 t b7,357 $ 15,166,269 $ 28,162,953 $ 429,998 $ 1,036,579 $ 44,786,T95 250,957 $ 205,093 $ 120,822 $ 6, 160 5 2,940 $ 335,016 - 4,622 13148 17,393 9,941 6,962 47,444 - 604,143 1, 123,822 1,727,965 - 297,056 673,316 20,000 26,544 916,916 - - - - 141.164 $ 1,119,440 $ 1,835,353 $ 36,101 $ 36446 $ 3027390 145,786 $ J 40,444 a 4,342,83153,656 a 70,00) 39.380 x 53,U937,679 a r 181,359 - $ 3,527,967 $ 4.406AS7 $ 109,380 $ 90,988 $ 8.13d,802 $ 4,647,407 $ 6,241,840 $ 145,481 $ 127,414 $ 11,162,142 145,786 $ 7,763.267 $ 12,469,W) $ 101,012 $. 506286 $ 20,828,734 t 67,357 406,837 1,170,443 40,d95 1,617,375 - 2,352,754 8,281,501 180,505 363,784 11,178.544 37,814 $ 10,512.858 $ 21,921.113 $ 281,517 $ 909,165 $ 33,624.653 105.171 Adjustment to milect die consolidefim of imemal service fund achvilles reletedto erderyrise funds, $ 1,361 Net assets of waitress -type aClAlles $ 33,626,014 M O_Oeratog ReveMjes, Charges for seMces MisceNaneous Internal S.-A Sp-.! A --re, intergov ental Totai0pe ling Reveiwes 00-1 na Favenses' Penmel services some$ Purchased seMces Fixed Charges losalbad debt expenses Daprecla8lm Battling materials Total oyerating expenses Cpera6ng{ncome Hass) tin n interest and irweslment revenoe IMer9ove"tuatntal revenue Hoalatps Debi Service Interest expense Totalnonope, trigrevenuelxxpenses) Net Income (loss) before contributions and transter5 CapltalCmNitaN0(18 Changaln nel assets Total net assets - begredng o1 year Reslafenlerit5 Total net assets, end of year City of 1(eilepall, Montana Statement of Revenues, Expsnaea, end Changes in Net A.W. Proprletery Panel® For the Year Ended June 30, 2004 B ineee•T Activlti a All Internal $.,I. Water $ewer Ambulance S.Hd Waste Total. Funde $ 1,616,831 $ 2.719.663 $ 1,361.487 $ 575,357 $ 6,273,338 $ - 36,164 150 277 464 37,055 243 - 1,588.304 - 327A 1 4,073 331,474 - - - 55,867 - 55,867 30,OW $ 1,652,995 $ 3,047,214 5 1,41 ,V61 $ 7713 n4 $ 669 y7734 $ 1,619,647 $ 548,84E $ 710.147 $ 550,887 $ 325,648 $ 2,135,528 $ 5,001 338" 62,813 20,378 29,689 146,768 12,569 286:152 622,312 65,951 14.992 969,407 1,500.166 144,689 1 79 '855 51.621 71,904 448,069 23A36 19,912 27,649 606,Oil - 652,572 - 4W.757 1,201,870 51,355 74,941 1,763,923 43,937 51,222 9,557 - - 60,779 - $ t,520,466 $ 2,814,203 $ 1546203 $ 517,174 $ 6,197.04E $ 1,584,709 $ 332.529 $ 333,011 $ 72,426 5 623721) $ 500688 $ 33,838 $ 17,156 S 91,467 $ 249 5 2,614 $ 111,486 $ 1,374 30,000 - - 30,000 - 444,790 690,814 - 1,135,604 - (123,714) (156,902) (2,421) (2,644) (265,681) - $ 336232 $ 655.379 $ _12,172) $ E30) S 991,409 $ 1,374 $ 470761 $ 888,390 8 70,256 $ 62.690 S 1A92A97 8 35,212 $ 347.183 S 896,897 $ - $ - $ 1,244,080 $ - $ 911,944 11 1,785,M $ T0,256 $ 62,69D $ 2,736,1T7 $ 35,212 $ 9,694,944 $ 20,135,826 $ 211,261 $ 846,475 s 69,g59 $ 10,512.858 $ 21,921.113 IS 281,517 $ 909, 165 $ 105,171 Mpustrnent In reflecithe ca-lddetion of internal saMcef ach46as rsiatedm anterpnse fonds. S 1.361 Change 1n net assets of businesstype activities $ 2,737.538 m CITY OF KALISPELL STATEMENT OF CASK FLOWS PROPRIETARY FUNDS For We Year Ended JVae30, 2001 N'ISBNAL WATER SEWER AM UsOLib WASTE FUND FUND FpNUNp FUNp TOTALS NUN9 Cash Its- from Operahng Aehhlles: Cash ReMeed From Cnsmmers S 1,545,969 5 2,726,946 S 131,O4 3 S,O)d945 $ 1,618,547 Cash sxs Reeeived From Asmehb 325, 151 S 388,930 914:081 Cash Paymeois I. Sapphers for Goods A Sersdces (613,883) (858, 783) (135,341) U16,584) (11124170) (1,323,382) Cash Payments b F,mPioyees for SerNees (557, 996] (706,6401) (568,72II) (324,787) (2,158,143) Cash From Otber Opera ft Revenues 97,126 4,391 56,144 464 158,121 Net Cash Provided by Operating AcIA411ts 47f 6 1 4 1 913 148 Q2 1 9 Cash Haws from Noncaphai Fle--lag AcWde4: Prindpal Paid an Loan Iron General Nnnd (825,W0) S (23,000) lnteresl paid on luau Iron General Fund $ (3,j21) g (3,521) Net Cash Provided by NOacaphalFmmst RAchcbks $ 6 5 0 (-1311 A. lam - Cash Fkms From Cspllai and Rela" Fkaodsm Aettvifler: Atgst8lOon aad Constrochon of Caplbl Assets. 5 (III, 87) S (579,934) (527,247) S (11318,568) S (37,630) Prpceed,BandVLoads 1,683,297 1,683,297 PWnehml Pals oa Debt Sesvlce (123,926) (502,768) (26,545) (653,239) Inlenst Paid on DIM Servlee (i23,714) (156,902) (2,645) (283161) Cash Rsctived From Hookups 446,376 690,814 1,137,190 Caplmi conir)bated by Tex lnerem..VOlher G," 6,405 Mo,000 36,401 Ne[ Cash Used for Capital aad ft, lmd Fbmm,lhRAcihdhes S 1,177,051 S (ME790) 5 (27147) S (29J90) S 601.824 S (37,630) Cash Fb- From €nvesOng Ae0d0ee: Interest op I -shame, g 17,1M S 91,467 $ 249 5 2,613 5 111,05 3 1,375 Advnpce bother (ands It of repayments 0 Parehaseof Slsea, add Curb Warraote (13,758) (13,758) Redemptlon of SM..Ik aad Cnrb Warranb 19,898 39,898 Net Cash Used 1, Imvesfine A,O tks 1 , / 56 S it 60 249 61] 1 Net I -ease b Cash aad Cam BgVivakat, S 1,60,423 S 1,089,"2 S 28,394 $ III,'" S 2,905,145 $ 58,910 Cash pad Cash Bgsdvaleo Ls at3* 1, 20N 1,241,507 8,293,146 6,054 227,442 9,760J,19 124,611 Cash aad Cash Egat akob at Jame 30, 2004 S 2,906,930 S 9 383 MS It 34,4411 S 348.888 S 12,673.2 $ 18J 601 Retomtmadon of OpesaOmR €neon, to Net Cash Pro a by Ope,mUms Aethilles: Operalmg Income S 332,529 5 233,011 3 71,4211 It 62,7m S 500,6U8 S 33,8.18 AdJpstmenb b Reeaaelle OpIrmhog Income to Net Cash Provided by OperaOnp AttBiOes: DepndeOon 435,711 1,201,970 51,355 74,943 1,70,923 43,937 Bad Debl Etpe OL- oh O6pmal 20,275 27,649 6031011 6n.935 Change m Asseb aad tl boties: becrease (lncreax)i Actoanie Receh able 00,261) 11,524 (629,45% (62KI95) (,.I 1-) 1.Asxra-et, ReM.M (2,250) 9,50 7,250 Decrease Hameax)he lhv U O (101,8&D (]01,884) increase (I),I-se)N Ac .-Payable 3,950 15,754 2,409 6" 22,759 602 increase (D-I:set le Compensated ABxoaes (91150) 3,5@7 07,833) 216 (23,240) Decreax In Eshmated I4at4$ty for Ck1ms SI6 788 Net Cash P,.Aded by Operahsg AI Wiles S 4712t6 S 1491%5 S 83911 S 148023 1 2194216 S 95165 Nxe wtv tmevw us6 aerdapm' mnala,meeu ws,e sss7,r xos,dnll'rawA Forrr+wra rrem.rrr®� N,..bae.r, u.nwepM.f®b..a,lb .a iirYy YSmtbaer,am iM4n,awr �e.a wrnlwlM • msaNg ar tivumosW ar nu �m pmdvaau le uua gWnrm. se. •n'^®m^^ivt Nwu u tl,e eNmtlY 9,en,ama 29 City of Kalispell, Mom... Fiduciary Funds Statement of Fiduciary Net Aaeeta for the Year Ended June 30, 2004 Agency Funds ASSETS Cash and short-term i—tneMs $ 597,823 Totalassets $ 597,823 LIABILTSES Accowls payable 597,823 Total GablAtes S 597.623 See Ascoepe[ry{,g Noleeto FNem.'�SlelemerGv NOTES TO THE FINANCIAL STATEMENTS CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the City of Kalispell's significant accounting policies A. Reporting Entity The City of Kalispell is a political subdivision of the State of Montana governed by an elected Mayor and Council duly elected by the registered voters of the City. T[te City utilizes the City Manager form of government The City is considered a primary government because it is a general purpose local government. Further, it meets the following criteria: (a) It has a separately elected governing body (b) It is legally separate and (c) It is fiscally independent from the State and other local governments. The accompanying financial statements present the primacy government and its component units, entities for which the government is considered to be financially accountable. These financial statements include all fiends- account Qronns naencies bonrds cnmmissinnc and nnthorities which meet the criteria fnr i., th,a City's financial report. These criteria include financial accountability, appointment of a majority of the secondary government and the financial benefit or burden derived by the primary government from a secondary government. Component Units As required by generally accepted accounting principles, these financial statements present the City of Kalispell and its component units. Component units are entities with a significant operational or financial relationship with the City, as described above. The Cities' three discretely presented component units, the Kalispell Parking Commission, Tri City Planning, and the Downtown Business Improvement District are legally separate organizations of the City, but the City is financially accountable. The component units are reported in a separate column to emphasize that they are legally separate from the City. Kalispell Parking Commission The Kalispell City Council passed Resolution 4103, a Resolution of intention to create Special Parking District #2 on June 21, 1993, Also passed was Resolution 4104, a resolution of intention to provide for funding the cost of maintaining, operating, repairing, and improving Special Parking Maintenance District #2 and Resolution 4105, a Resolution declaring the need for a Parking Commission to function in the City of Kalispell and declaring a jurisdictional area wherein said Parking Commission is authorized to function. The Mayor and City Council appointed the Board of Directors composed of City residents who operate businesses within the district. The Parking Commission opened their doors on February I st 1994. The City transferred $53,000 in Fiscal 1994 to the district as start up money, no further City funds have been given to the district. It is intended that the Parking Commission be operated as a Proprietary type fund and has been classified as such in the City's financial statements. 31 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS AJNE 30, 2004 Tri City Planning On July 1, 2001 the Tri City Planning Office was created by interlocal agreement between the cities of Kalispell, Whitefish, and Columbia Falls. The purpose of the Tri City Planning Office is to coordinate all land use planning, review and approve subdivisions, and zoning and enforcement as they relate to the cities, namely to provide long range and current land use planning services. The Tri City Planning Board is made up of the City Managers, representing the Mayor and City Council, of the three cities. The City of Kalispell serves as the administrative agent at the pleasure of the Board. The employees are paid through the City of Kalispell payroll system and are included in its health program. Cost of operating the office is split between the cities, proportionate to their expected benefit. Some costs of operating are recovered through planning fees. Downtown Business Improvement District On May 17, 2004, by resolution 4891 A, the City created the Downtown Business Improvement District. The purpose of which appears to promote the health, safety, prosperity, security and general welfare of the inhabitants of the City of Kalispell and the proposed district, and appears to be of special benefit to the property within the District. The District boundaries are roughly 2nd Avenue East to 2�d Avenue West between Center Street and 4 Street South. Publicly owned property and owner occupied single family dwellings are exempt from the assessments related to the District. B. Government -wide and fund financial statements The government -wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Govenuriental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. 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. The general government function of the City includes expenses which are, in essence, indirect expenses of other functions. The City has chosen not to allocate these indirect expenses. Program revenues include 1) 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 and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government - wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 32 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 C. Measurement Focus, Basis of Accounting, and Basis of Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of 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. The accounts of the City are organized on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self -balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance -related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those fiends. Governmental funds are used to account for the City's general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual. (i.e., when they are "measurable and available") "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for urmnatured interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgements which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Real and personal property taxes, special assessments, charges for current services, and interest earnings are susceptible to accrual. Other receipts and taxes become measurable and available when cash is received by the City and are recognized as revenue at that time. The City recorded real and personal property taxes and assessments levied for the current year as revenue. Taxes and assessments receivable remaining unpaid at year-end and not expected to be collected soon enough thereafter to be available to pay obligations of the current year were recorded as deferred revenue, with a corresponding reduction in revenues, as required by generally accepted accounting principles. In addition, prior period delinquent taxes and assessments collected in the current period were recorded as revenue in the current period as required by generally accepted accounting principles. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. 33 CITY Of KALISPELL NOTES TO FINANCIAL STATEMENTS IIJNE 30,2604 Governmental funds include the following fund types: The General Fund is the City's primary operating fund, It accounts for all financial resources except those required to be accounted for in other funds. The special revenue funds account for the revenue sources that are legally restricted to expenditures for specific purposes (not including major capital projects). The capital project funds account for the acquisition or construction of capital facilities (other than those financed by proprietary funds). The debt service funds account for the servicing of general long-term debt and special assessment debt not being financed by proprietary funds, and for which the City is obligated in some manner for payment. The City reports the following major governmental funds: The General Fund is always a major fund The Community Development Loan Revolving Fund was established to account for the lending and repayment of monies loaned to businesses and individuals for projects approved by the City's Community Development department, SID 343 is a debt service fund established to account for the resources accumulated and payments made for principal and interest on the 20 year bonds sold to reconstruct Sunnyview Drive, The Pool Construction Fund is used to account for revenues and expenses associated with the construction of the City's new aquatic facility and skate park at Woodland Park. 34 CITY OF KALISPELL NOTES TO FINANCIAL STAM,4ENTS JUNE 30, 2004 Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City has elected not to apply FASB pronouncements issued after November 30,1989, The enterprise funds are used to account for those operations that are financed and operated in a manner similar to private business or where the City Council has decided that the determination of revenues earned, costs incurred and/or net income is appropriate for management accountability. The internal service funds use to account for operations that provide services by one department to other departments or agencies of the government, or to other governments, on a cost reimbursement basis. The City reports the following major proprietary fluids: The Water Fund accounts for the activities of the City's water distribution operations. The Sewer Fund accounts for the activities of the City's sewer collection and treatment operations and includes the storm sewer system. The Ambulance Fund accounts for the activities of the City's Ambulance service. Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of others The agency fund is custodial in nature and does not present results of operations or have a measurement focus. Agency funds are accounted for using the mortified accrual basis of accounting. This fund is used to account for assets that the City holds for others in an agency capacity. The general fixed assets account group is used to account for the fixed assets of the City which are not accounted for in proprietary or trust funds. The general long-term debt account group is used to account for general long term debt and certain other liabilities that are not specific liabilities of proprietary or trust funds. Private -sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private -sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private -sector guidance. 35 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements, and the internal service funds have been absorbed pro -ratably into governmental -type and business -type activities on the government -wide fmancial statements. Exceptions to this general rule are charges for services between various functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Program revenues derive directly from the program itself or from parties outside the City's taxpayers or citizenry, as a whole; they reduce the net cost of the function to be financed from the C'ih1'c general revenue.0 Amrnlntc rennrtPd as prolo-an, reyF:n7 ie include.. 11 charges to customers or annlicants 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. Likewise, general revenues include all taxes. proprietary funds distinguish operating rcvenues 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. The principal operating revenues of the City's proprietary funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost 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. D. Budgets and Budgetary Accounting 1. Budget Process An annual appropriated operating budget is adopted each fiscal year for the General Fund, special revenue funds, debt service finds and capital projects funds on the modified accrual basis. A non -binding management budget is adopted for the enterprise and internal service funds on a full accrual basis. The appropriated budget is prepared by fund, function, and for the General Fund and certain other funds, by department. The final budget is legally enacted by the City Council, on the second Monday in August after holding public hearings as required by State statutes. Budget appropriation transfers may be made between general classifications of salaries and wages, maintenance and operation and capital outlay. Reported budget amounts represent the originally adopted budget as amended by resolution of the City Council. It is management's responsibility to see that the budget is followed to the budgetary line item. The City Council may amend a final budget when shortfalls in budgeted revenues require reductions in approved appropriations to avert deficit spending; when savings result from unanticipated adjustments in projected expenditures; when unanticipated state or federal monies are received; or when a public emergency occurs which could not have been foreseen at the time of adoption. The procedure to amend the budget in total can be made only after the City prepares a resolution, notice is published of a public hearing, and a public hearing is held in accordance with state law. 36 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 All material budget amendments and transfers during FY 2004 are described below: Increased the appropriations in the Westside TIF special revenue fund in the amount of $329,927 for costs associated with the TeleTech project. Increased the appropriations in the Westside TIF debt service fund in the amount of $1,770,026 for costs related to the pay down of the Stream debt and the reduction of the bond reserve. Increased the appropriations in the Pool Construction fund in the amount of $73,193 to appropriate all remaining funds. Increased appropriations in the Ambulance fund in the amount of $44,300 for unanticipated overtime expense. 2. Encumbrances All appropriations lapse at the end of fiscal year. Encumbrance accounting is not used by the City. E. Assets, Liabilities, and Net Assets or Equity 1. Cash, Cash Equivalents, and Investments The City's cash and cash equivalents are considered to be cash on hand, demand and time deposits, bidders bonds, bonds and warrants, and investments with the State of Montana's short-term investment pool (STIP). The cash resources of the individual funds are combined to form a pool of cash and investments which is managed by the City Treasurer. Investments are carried at cost, which does approximate fair value as described in Note III, A, except for investments in STIP and particular bonds, which are reported at fair value. For purposes of the statement of cash flows, the enterprise and internal services funds consider all funds (including restricted assets) held in the City's cash management pool to be cash equivalents. 37 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JONE 30, 2004 2. Receivables and Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either interfund receivables/payables (i.e„ the current portion of interfund loans) or advances to/from other funds (ix,,the non -current portion of interfund loans). All other outstanding balances between funds are reported as due to/from other funds. Advances between funds are offset by a fund balance reserve account in applicable govemmental funds to indicate they are not available for appropriation and are not expendable available financial resources. Property tax levies are set on or before the second Monday in August, in connection with the budget process. Real property (and certain attached personal property) taxes are billed within ten days after the third Monday in October and are due in equal installments on November 30 and the following May 31, After those dates, they become delinquent, and a lien is filed upon the property. After three years, the City may exercise the lien and take title to the property. Special assessments are billed in two equal installments due November 30 and the following May 31. Personal property taxes (other than those billed with real estate) are generally billed no later than the second Monday in July (normally in May or June), based on the prior November's levies. Personal property taxes, other than mobile homes, are due thirty days after billing. Mobile home taxes are billed in two halves, the fast due thirty days after billing; the second due September 30. The tax billings are considered past due after the respective due dates and are subject to penalty and interest charges. The tax levies for the fiscal year ended June 30, 2004, were based upon a taxable valuation of $25,270,431 An allowance for uncOlectible accounts was not maintained for real and personal property taxes and special assessments receivable. The direct write-off method is used for these accounts, A reserve for estimated uncollectible accounts receivable is maintained for the Water Fund, Sewer Fund and the Ambulance Fund. The reserve balances are as follows for June 30, 2004: Water $ 7,831 Sewer $ 13,572 Ambulance $ 229,000 38 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 3. Inventories and Prepaid Items Inventories for materials and supplies for governmental fund types are expended at the time of purchase. Enterprise Fund Inventory of materials and supplies are valued at cost. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. 4. Restricted Assets Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. When an expense is incurred for which both restricted and unrestricted net assets are available, it is the City's policy to first apply the restricted resources. 5. fixed Assets Fixed assets, which include property, plant, and equipment, are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Fixed assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at estimated fair market value at the date of donation. All of the City's public domain or infrastructure fixed assets have not yet been recorded in the City's financial statements. Public domain or infra -structure assets can include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems and similar assets that are immovable and of value only to the governmental entity. The City of Kalispell has until fiscal year 2007 to retroactively report infrastructure assets. The costs of normal maintenance and repairs that do not add to the value of the assets or extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related assets. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of fixed assets is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. 39 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 Depreciation has been provided for the property, plant and equipment of the proprietary funds using the straight line method. The useful lives of these assets have been estimated as follows: Buildings 20-50 years t».............. _ rlrr,a,-rho., t» Id;,,..c t(1_Sfl vPurc Machinery, vehicles and equipment 5-20 years Water and Sewer lines, pump stations 10-50 years b. Compensated Absences It is the City's policy and state law to permit employees to accumulate a limited amount of earned but unused vacation bcnefits, which will be paid to employees upon separation from City service. Employees are allowed to accumulate and carry over a maximum of two times their annual accumulation of vacation, but no more than 90 days into the new calendar year. There is no restriction on the amount of sick leave that maybe accumulated. Upon separation, employees are paid 100 percent of accumulated vacation and 25 percent of accumulated sick leave. The liability associated with governmental fund -type employees is reported in Governmental Activities column of the Statement of Net Assets, while the liability associated with proprietary fund -type employees is recorded in the respective fund. 7. Long - Term Obligations In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of the debt issued is 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. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 40 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 S. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not appropriable or are legally segregated for a specific purpose. Reservations of retained earnings are limited to outside third -party restrictions. Designations of fund balance represent tentative management plans that are subject to change. 9. Interfund Transactions lnterfund transactions consisting of identified services performed for other flands or costs billed to other funds are treated as expenditures in the fund receiving the services and as revenue in the fund perfornvng the services. Transactions which constitute reimbursements of a fund for expenditures or expenses initially made from it which are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of the expenditures in the fund that is reimbursed. Advances between funds are accounted for in the appropriate interfund receivable and payable accounts. 'These types of transaction, if between the same type of fund (i.e., governmental or proprietary) have been eliminated in the government -wide financial statements. IL RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of certain differences between the governmental fund balance sheet and the government -wide statement of net assets The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds and net assets — governmental activities as reported in the government -wide statement of net assets. One element of that reconciliation explains that "long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds". The details of this $6,436,671 difference are as follows: G. 0. Bond payable $3,475,000 SID Bonds payable $1,341,913 Loans $1,083,698 Compensated Absences 739,896 Net adjustment to reduce fund balance — total governmental funds to arrive at net assets — governmental activities 6.640,507 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUKE 30,2004 B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government -wide statement of activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances — total governmental funds and changes in net assets of governmental activities as reported in the government -wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense". The details of this $3,567,649 difference are as follows: Capital outlay $4,342,922 Depreciation expense 775 274 Net adjustment to increase net changes in fund balances — total governmental funds to arrive at changes in net assets of governmental activities $3.567.649 Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds, leases) 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 assets". The details of this $1,622,694 difference areas follows: Debt issued or incurred: Capital lease financing $(203,836) Sidewalk and Curb bond procceds (13,759) $(217,595) Principal repayments: G.O. Debt $ 120,000 SID debt 150,000 Capital lease debt 1,562,304 Sidewalk and Curb debt _ 7,985 1,840,289 Net adjustment to increase net changes in fund balances — total governmental funds To arrive at changes in net assets of governmental activities EL622 624 42 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JIJNE 30, 2004 Ill. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Excess of expenditures over appropriations For the year ended June 30, 2004, expenditures exceeded appropriations in the Facilities Administration and Parks and Recreation departments of the General Fund by $8,226 and $16,037, respectively, and in the Aquatics Facility and ISTEA special revenue fiords by $26,595 and 2,886, respectively. These overexpenditures were funded by available fund balance in the case of the General Fund and Aquatic Facility, and by greater than anticipated revenues in the case ofthe ISTEA fund. B. Deficit Fund Balances The following Funds had deficit fund balances at June 30, 2004: Special Revenue Funds: Aquatic Facility $ 8,140 Debt Service Funds: G. O. Bond $ 16,775 1994 Sidewalk & Curb $ 921 1997 Sidewalk & Curb $ 517 2002 Sidewalk & Curb $ 628 Capital Project Funds: S & C Construction $ 6.797 The deficits in the debt service funds and the capital project fund were caused by a short -fall in anticipated revenue_ The deficit in the G.O. Bond fund will be eliminated as tax payments are received. The deficits in the Sidewalk and Curb funds will be eliminated as delinquent assessments are collected. The Sidewalk & Curb Construction fund deficit will be eliminated through the sale of bonds. 43 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 IV. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A. Cash and Cash Equivalents Investment Income Income from pooled investments is allocated to the individual funds based on the fund's month end cash balance in relation to total pooled investments Cash Composition Cash and investments may include cash and cash items; demand, time, savings, and fiscal agent deposits; investments in the State Short -Term Investment Pool (STIP); repurchase agreements; U.S. government treasury bills, notes bonds, and other treasury obligations such as state and local government series; general obligations of certain agencies of the United States such as Federal Home Loan Bank; and U.S. government security money market funds if the fund meets certain conditions. Total City's composition of cash, deposits and investments at fair value as of June 30, 2004, are as follows Cash on hand $ 1,850 Cash in banks: Demand Deposits 390,404 Time Deposits 41,549 Bidders Bonds 358,584 Bonds/Warrants 31,913 STIP/other investments 20,765,803 Total $21 590M Interest rates range from I % to 6% and maturity dates range from 6 months to five years. Deposits At year end, the carrying amount of the City's deposits was $431,953. All deposits were covered by Federal Depository Insurance or were covered by securities held by the pledging financial institutions trust department or agent in the City's name. Montana statutes require that the City obtain securities for the uninsured portion of the deposits as follows: 1. Securities equal to 50% of such deposits if the institution in which the deposits are made has a net worth to total assets ratio of 6% or more, or 2. Securities equal 100% of the uninsured deposits if the institution in which the deposits are made has a net worth to total assets ratio of less than 6%. State statutes do not specify in whose custody or name the collateral is to be held. The amount of collateral held for the City deposits at June 30 2004, equaled or exceeded the amount required by State statutes. 44 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 Categorized Risk Statutes authorize the City to invest in the State Short -Term Investment Pool (STIP); repurchase agreements; registered warrants of the County or of municipalities or school districts located in the county; U.S. government treasury bills, notes, bonds and other treasury obligations such as state and local government series; general obligations of certain agencies of the United States such as Federal Home Loan Bank; and U.S. government security money market funds if the fund meets certain conditions. These investments are in addition to the demand, time, credit union, and savings deposits, which are included in deposits above. The City investments are categorized below to give an indication of the level of risk assumed by the City at June 30, 2004, Statement No. 3 of the Governmental Accounting Standards Board requires government entities to categorize investments held at year end to give an indication of the level of risk assumed by the entity. The City has no Category 2 or 3 investments which refer to uninsured or unregistered securities (higher risk). Category I includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name (lower risk). The City's category 1 investments and those not subject to categorization as of June 30, 2004 are shown below: Carrying Value Market Value Category 1 Warrants $ 31,913 $ 31,913 Government Securities 2,000,000 1,969,478 Not subject to categorization State Short -Term Investment Pool 18,765 803 18,765,803 Total Investments $20,297316 �29 767,194 Governmental Accounting Standards Board (GASB) Technical Bulletin No. 94-1 requires governmental entitles participating in an investment pool to disclose certain types of securities held in the pool. As noted above, the City invests in the State Short -Term Investment Pool managed by the State of Montana. This pool contains two types of investments required to be disclosed, which are Asset -backed Securities and Variable Rate (Floating Rate) securities. Amounts (unaudited) invested by STIP in each type as of June 30, 2004, were as follows: Categga I % Asset -backed $940,831,210 64 Variable rate 504,981,731 35 Other Securities 34,000,000 1 Total IL479.8I2 241 144 Amounts invested by the City in STIP may be redeemed at any date at the carrying value on that date. 45 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS NNE 30, 2004 According to GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and External Investment Pools, STIP is considered and Fxtcrnal investment pool. STIP is also classified a "2a7-like" pool. A 2a7-like pool is an external investment pool that is not registered with the Securities and Exchange Commission (SEC) as an investment company, but has a policy that it will, and does, operate in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940. If certain conditions are met, 2a7-like pools are allowed to use amortized cost rather than fair value to report net assets to compute unit values. The Board of Investments has adopted a policy to treat STIP as a 20-like pool. Audited financial statements for the State of Montana's Board of Investments are available at 555 Fuller Ave. in Helena, Mt- B. Interfund Receivables and Payables The composition of interfund balances as of June 30, 2004, were as follows: Due tolfrom other funds: Receivable Fund Payable Fund Amount General S & C Const. $6,797 SID Revolving 1994 S & C 921 SID Revolving 1997 S & C 571 SID Revolving 2002 S & C 628 Total ME Advances to/from other funds: Receivable Fund Payable Fund Amount General Fund Ambulance 0 0= 46 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS .TUNE 30, 2004 C, Operating Transfers The following is an analysis of operating transfers in and out during Fiscal Year 2004 From TO Amount CCeneralFuund Police Resource (1) I13-099 General Fund Drug Enforcement 22,000 General Fund Universal 16,000 General Fund FEMA 13,707 General Fund Police Resource (2) 126 WestTIF (debt serv.) WestTIF (spec. rev.) 650,000 MACI Gas Tax 6,019 Parks in lieu ISTEA 32,170 General Fund Fire Station Const. 40,000 Total Mll 47 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 D. Fixed Assets Fixed asset activity for the year ended June 30, 2004 was as follows Balance Balance Governmental Activities: Jul3 Additions Deductions June 30, 2004 Fixed assets not being deep. ri uteri'. Land $2,193,522 $ 2,193,522 Construction in Progress 1,170,512 27 552 $(1,170512) 27,552 Total fixed assets not being depreciated 3.3 44.034 27,552 (i,172512) 2,221 D74 Fixed assets being depreciated: Buildings 9,962,637 1,652,391 11,615,028 Improvements Other Than Buildings 7,225,926 4,890,057 12,115,983 Machinery and Equipment 3,486,129 108,066 f132.092) 3,462,103 Total fixed assets being depreciated 20 6 44 692 6,650,514 (132,092) 27,193,114 Less accumulated depreciation for: Buildings (3,179,592) (308,688) (3,488,280) Improvements Other Than Buildings (1,034,553) (231,973) (1,266,526) Machinery and Equipment (1,694 012) (218,880),. 116 358 (L796,534) Total accumulated depreciation (5,908,157) (759,541) 116,358 (6,551 340) Total fixed assets, being depreciated, net 14,766,535 5,890,973 (15.734) 20,641,774 City fixed assets, net $18-130.5-e !L%A.525 1 AW $ ,8�2 62 848 48 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 Balanee Balance July 1,2003 Additions Deductions June 30,2004 Internal Service Funds Data Processing $308,204 $ 37,630 $ (25,203) $320,630 Less Accumulated Depreciation 23.E 4,540) (43,937) 25,203 1211 274) Net $73,664 $ (6,307) $ 0 $ 67.356 Component Unit Tri-City Planning $51,110 $0 $0 $51,110 Less Accumulated Depreciation (29,379) (5,687) 0 _QL066) Total $ (5,687) R© $16 044 49 CITY OF KALISPEI,L NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 Balance Balance Business -type Activities: July 1,2003, Additions Deductions June 30, 2004 Fixed assets, not being depreciated: Land $ 238,768 $ 238,768 Const. in Progress 328,614 2 2$ , 57,330 $ 16( 4.015) 2,421,930 Total fixed assets, not being depreciated 567,382 2,257,330 16( 4"015) 2,660,698 Fixed assets, being depreciated: Buildings 316,731 316,731 Machinery & Equip 1,724,215 31,247 (37,445) 1,718,018 Source of Supply 764,952 764,952 Pumping Plant 1,691,977 1,691,977 Treatment Plant 14,716,853 89,999 (73,993) 14,732,859 Transmission and Distribution 20,577,165 1,618,243 (79,237) 22,116,172 General Plant 1,641,337 137,042 1,778,377 Storm Sewer System 4 442 197197 323 495495 4.765,692 Total fixed assets, being depreciated 45.875,427 2 200 026026 19( 0,675) 47,884,778 Less accumulated depreciation for: Buildings (96,925) (15,888) (112,813) Machinery & Equip (932,190) (143,849) 37,445 (1,038,594) Source of Supply (310,146) (17,568) (327,714) Pumping Plant (630,713) (49,723) (690,436) Treatment Plant (8,696,911) (779,895) 48,390 (9,428,417) Transmission and Distribution (6,174,908) (483,912) 54,053 (6,604,766) General Plant (972,757) (159,178) (1,131,935) Storm Sewer System (1,497,795) 11{ 3,911) (1,611,706) Total accumulated depreciation 09.312,34 (1 76, _3 924) 139,888 (20,936,383) Total fixed assets, being depreciated, net 26 563 080 436 102 5_( 0,7871 26.948395 Business -type activities fixed assets, net $27JM 462 11231AU A $ U� Q2a 50 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 Balance Balance July I, 2003 Additions Deductions June 30, 2004 Component Unit Parking Commission $49,873 $29,586 $ (0) $79,459 Less Accumulated Depreciation (41,539) (6,354) 0 (47,894) Net $ 123= i 1 Sf 5 Depreciation was charged to functions/programs of the primary government as follows: Governmental activities: General government $377,039 Public Safety 158,964 Public Works 94,590 Culture and Recreation 142,125 Community Development 2,556 Total $2 Business -type activities: Water $ 435,757 Sewer 1,201,870 Ambulance 51,355 Solid Waste 74.941 Total 1 7 The depreciation on the fixed assets held by the City's internal service funds are charged to the various functions and business -type activities based on their usage of those assets. 51 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS NNE 30, 2004 E. Long -Term Debt Changes in Long -Term Debt Liabilities — During the year ended June 30, 2004, the following changes occurred in liabilities reported in long-term debt: Balance Balance July 1, 2003 Additions Reductions June 30, 2004 (1)G,O. Bond $3,595,000 (120,000) $3,475,000 (1,2) Revenue Bonds 5,865,364 2,021,245 (1,935,218) 5,951,391 (2) SRF Loan-WWTP 2,235,000 1,151,748 (198,000) 3,188,748 (1)Assessments 1,496,140 13,758 (167,994) 1,341,912 (1,2)Contract Debt/loam 597,791 203,836 (77,709) 723,918 (1,2,3) Camp. Absences 1,036,884 66 683 (67,169) 976,398 94.S26,178 $�_ 3 y_Z274 (2.566.0$Q1 $15 657 368 (1) reported in long -ter to debt account group (2) reported in enterprise funds (3) reported in component units General Obligation Bonds — The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. General obligation bonds outstanding as of June 30, 2004 were as follows: Origination Interest Due Principal Purpose Date Rate Term Date Amount Aquatic Facility 4/15/02 2%-4.9% 20 yrs 2022 $2,675.000 52 Annual Balance Payment June 30, 2004 varies 4_5 00 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS Ji 1NE 30, 2004 Special Assessment Debt — Special assessment bonds are secured by a lien on the assessed properties. The primary source of repayment is the assessments levied against the benefiting properties. However, the City is liable, to an extent, for repayment of these special assessment bonds. The City is authorized by State law to establish and has established a revolving fund to ensure the payment of debt service on the bonds in the event that assessed property owners default. Origination Interest Due Principal Annual Balance Purpose bate Rate Terra Date Amount Payment June 30 2004 SID 341 9/l/95 6.06% 15 yrs. 2011 $ 100,000 varies $ 35,000 SID 342 11/1/95 6.34% 15 yrs. 2011 209,000 varies 35,000 SID343 6/12101 3.6-5.5% 20 yrs. 2021 1,581,500 varies 1,240,000 1996 S & C 1/2197 8.5% 8 yrs. 2005 12,148 varies 1,518 1997 S & C 10/1/98 8.0% 8 yrs. 2006 8,572 varies 1,072 1998 S & C 10/1/99 7.75% 8 yrs. 2007 1,687 varies 633 1999 S & C 1/1100 8.5% 8 yrs. 2008 1,769 varies 884 2000 S & C 1/2101 9.5% 8 yrs. 2009 2,315 varies 1,447 2001 S & C 1/2/02 5.0% 8 yrs. 2010 1,209 varies 907 2002 S & C 112103 4.25% 8 yrs. 2011 13,364 varies 11,693 2003 S & C I/l/04 4.0% 8 yrs. 2012 13 758 varies lV58 Total Special Assessment Bonds $ja45 322 CL141.212 53 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 Revenue Bonds — Revenue bonds are directly related to and expected to be paid from the proprietary fund. The 2000 Westside Tax Increment bonds are accounted for in the General Long -Term Debt Account Group. Issue Interest Final Bonds Balance Purpose Date Rate Term Matuity Issued June 30 2004 2001 Water 6/01 4.00% 20yrs. 2021 $ 761,000 $ 679,000 2000 Solid Waste 3/01 4.75% 5 yrs. 2006 159,265 79,633 2004 Water Refunding 5/04 2.50-4,85% 20 yrs. 2024 1,840,000 1,840,000 2004 Water 5/04 2.70-3.85% 10 yrs. 2015 372,921 372,921 2002Sewer1WWTP V02 3.51% 9yrs. 2011 2,355,000 1,695,000 2000 Westside TIF 3/00 6.21% 10 yrs. 2010 2,500,000 408,379 2003 Water 1103 2.85% 10 yrs. 2013 907,500 876,458 Total Revenue Bonds WMMW $ 5951321 Signl}icant Provisions of the Series 2000 Westside Urban Renewal Tax Increment Bond Reserve Account — The City shall keep in the reserve account an amount equal to the maximum amount of principal and interest due on all outstanding bonds of the Westside Tax Increment District in the Then current or any future fiscal year. O1S Bond Max Principal and Debt Due in any future fiscal year $82,569 City's Reserve $82,569 2004 Water Refundins Bond Issue On May 15, 2004, the City issued $1,840,000 of Water System Revenue and Refunding Bonds with an average interest rate of 4.3 percent to refund $590,000 of outstanding 1996 Series bonds with an average interest rate of 5.6 percent. As a result, the 1996 Series bonds are considered to be defeased and the liability for those bonds has been removed from the Water Fund. The effect of this refunding was a reduction in debt service payments over the next 8 years of $181,182, and an economic gain (difference between the present values of the old and new debt service payments) of $169,337. 54 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS RUNE 30, 2004 Slaniflcant Provisions of the Water System Revenue Bonds Debt Service Account - Monthly an amount equal to not less than 116 of the interest due within the next six months and 1 /12 of the principal to become due within the next twelve months shall be credited to the debt service account. The debt service account was zero as of June 30, 2004, as all debt service payments were made as of the end of the fiscal year, leaving no accrued interest or principal balance. Reserve Account - The City shall keep in the reserve account an amount equal to the lesser of 10% of the original principal or the maximum amount of principal and interest required in the current or any subsequent fiscal year. 2001 issue (maximum principal/interest due in fiscal year) $ 56,000 Other bond issues (10% of original issue) $308,938 Total Reserve Requirement $ b3 LM Reserve balance 6130/04 S32 " Property Insurance - The City will cause all buildings, properties, fixtures, and equipment to be kept insured in amounts that are ordinarily carried. Liability insurance - The City will carry insurance against liability of the City and its employees. Rates and Charges — Rates and charges will be made and kept sallicient to provide gross income and revenues adequate to pay promptly the reasonable and current expenses of operating and maintaining the system and to produce in each fiscal year net revenues in excess of such current expenses, equal to 125% of the maximum amount of principal and interest payable from the Revenue Bond Account in any subsequent fiscal year. Cash Flow Coverage Water Service Charges $1,616,831 Mise. Revenue _ 36,164 Total Operating Revenue $1,652,995 Less: Operating Expense (before depreciation) 1,084,709 Available for Debt Service $--5 Cz Maximum Debt Service $ 431,761 Coverage FY04 132% 55 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS RUNE 30, 2004 Sewer Revenue Bonds Ordinances and Required Information Debt Service Account - Monthly an amount equal to not less than I /6 of the interest due within the next six months and 1 /12 of the principal to become due within the next twelve months shall be credited to the debt service account. The debt service account was zero as of June 30, 2004, as all debt service payments were made as of the end of the fiscal year, leaving no accrued interest or principal balance. Reserve Account - The City shall keep in the reserve account an amount equal to the lesser of IO% of the original principal, the maximum amount of principal and interest required in the current or any subsequent fiscal year, or 125% of the average debt service payable in any fiscal year. 10% of the original principal was the lesser of the two options for the 2002 bond resulting in a reserve requirement of $235,500. As of June 30, 2004, the debt service reserve account contains $650,550. Rates and Charges — Rates and charges will be made and kept sufficient to provide gross income and revenues adequate to pay promptly the reasonable and current expenses of operating and maintaining the system and to produce in each fiscal year net revenues in excess of such current expenses, equal to 125% of the maximum amount of principal and interest payable from the Revenue Bond Account in any subsequent fiscal year. Cash Flow Coverage Sewer Service Charges $2,719,663 Misc. Revenue 150 Total Operating Revenue $2,719,813 Less: Operating Expense (before depreciation) 1.482,609 Available for Debt Service 92X-_ & Maximum Debt Service $ 369,648 Coverage FY04 335% Operating Reserve Account — The City shall maintain an Operating Reserve equal to one month's operating expenses. The term operating expenses shall mean current expenses, paid or accrued, or operation, maintenance and current repair of the system and its facilities, and shall include administrative expenses of the city relating solely to the system, premiums for insurance on the properties, labor and the cost of materials and supplies used for current operation and for maintenance, and charges for the accumulation of appropriate reserve for current expenses which are not recurrent monthly but may reasonably be expected to be incurred in accordance with sound accounting practices. Such expenses shall not include any allowance for depreciation or renewals or replacements of capital assets of the system and shall not include any portion of the salaries and wages paid to any officer or employee of the City, except such portion as shall represent reasonable compensation for the performance of duties necessary to the operation of the system. The operating reserve account balance at June 30, 2004 was $128,000. Audited Financial Statements - The City shall, within 120 days after the close of each fiscal year, cause to be prepared and supply to the original purchaser or purchasers of bonds issued hereunder and the bank or banks designated as agent for the payment of principal of and interest thereon a financial report with respect to the system of such fiscal year as prepared by an independent certified public accountant. The audit report shall include the following: 56 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS J[JNE 30, 2004 Significant Provisions of the 2001 Solid Waste Revenue Bonds Debt Service Account - Monthly an amount equal to not less than 1 /6 of the interest due within the next six months and 1/12 of the principal to become due within the next twelve months shall be credited to the debt service account. The debt service account balance at June 30, 2004, was $24,095, which exceeded the required amount of $20,400. Reserve Account - The City shall keep in the reserve account an amount equal to the lesser of 10% of the original principal or the maximum amount of principal and interest required in the current or any subsequent fiscal year. 10°% of the original principal was the lesser of the two options resulting in a reserve requirement of $15,927. As of June 30, 2004, the debt service reserve account contains $16,000, Rates and Charges —Net revenues will be at least equal to 125% of the maximum amount of principal and interest payable in any subsequent fiscal year. 125% of maximum requirement $ 35,418 Net revenues $137,661 State Revolving Fund Loan — In November 1991, the City entered into an agreement with the State Revolving Fund (SRF) to borrow funds to partially finance the construction of a wastewater treatment plant facility. This obligation is to be repaid from the operating income of the sewer fund. In FY04, the City entered into another SRF agreement to borrow funds to finance the extension of sewer lines south of the City on Highway 93, Interest Amount Outstanding Origination Purpose Rate Term Borrowed June 30, 2004 FY92 Sewer — SRF 4% 20 yrs. $3,913,425 $2,037,000 FY04 Sewer —SRF 3.75% 20yrs 1,151,748 1,151,748 Total SRF Loans 57 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS MNE 30, 2004 Loans/Contracted Debt Original Origination Interest Due Principal Balance Purpose Date Rate Term Date Amount June 30, 2004 *Board of Housing 3/1/95 6.0% 30yrs. 211/25 $ 271,000 $ 230,628 BOI: Road Grader 2/25100 2.85% 7 yrs. 2115107 122,382 56,778 BOI: Fire Truck 2/15/00 2.85% 5 yrs. 2115/O5 87,603 18,927 BOI: Boom Trk/LeafLdr 1/26/01 2.85% 5 yrs. 2/15/06 88,950 38,008 BOI: P/U/Aerator 5/16/03 2.85% 5 yrs. 8/15/08 40,888 37,059 BOL Bldg/Plow Trks 5116103 2.95% 5 yrs. 9115108 99,390 90,093 BOI: City Hall HVAC 7/16104 2.70% 10 yrs. 2/15/14 151,836 151,836 BOI: Streets Building 5/16/03 2.75% 5 yrs. 8/15/08 52,000 52,000 Total Governmental Fund Type $ 914.049 $ 675,319 Enterprise Funds BOI: John Deere Loader 3/10/00 2.85% 7 yrs. 2/15107 103,000 48,599 Total Loans $10V 723.918 *BOI — Board of Investments Intercap Loan Program * The board of housing loan is paid from the proceeds of the rents on the Courtyard Apartments per the agreement with North West Human Resources. Compensated Absences Payable — compensated absences payable, which represent vacation, sick leave and compensatory time earned by employees, and is payable upon termination, were as follows: General Long -Term Debt Account Group S 739,896 Tri-City Planning 49,429 Enterprise Funds 181,359 Parking Commission 55 714 Total 58 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS RJNE 30, 2004 Requirements to amortize debt The annual requirements to amortize all long-term debt outstanding, excluding compensated absences payable, as of June 30, 2004, were as follows: SPECIAL G.O. ASSESSMENT CONTRACTED REVENUE FOR FISCAL BONDS BONDS LOANS/DEBT BONDS YEAR ENDED PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST TOTAL 2005 130,000 160,475 137,108 62,962 389,127 145,049 659,670 218,150 1,902,542 2006 135,0D0 154,463 79,612 59,554 382,335 135,423 692,979 207,177 1,846,542 2007 140,000 148,388 119,112 54,392 375,987 120,947 588,876 183,073 1,730,774 2008 145,000 142,088 118,901 49,572 353,525 106,774 577,471 151,942 1,645,272 2009 155,000 135,563 106,680 44,453 345,013 92,845 597,873 139,483 1,618,910 2010-2014 880,000 569,970 438,500 156,563 1,390,595 262,536 1,752,872 390,412 5,841,449 2015.2019 1,100,000 355,250 340,000 58,000 473,870 90,220 584,646 185,978 3,167,964 2020.2024 790,000 78,645 189,504 17,322 497,000 64,088 1,636,559 TOTAL 3,475,000 1,744,840 1,341,913 485,496 3,899,957 971,116 5,951,388 1,540,302 19,410,011 F. State -Wide Retirement Plans Substantially all full-time City employees are eligible for one of three retirement plans: Montana Public Employees' Retirement System (PERS); Municipal Police Officer's Retirement System (MPORS): and the Firefighters' Unified Retirement System(FURS). The plans are established by State law and administered by the State of Montana. The plans are cost-sbanng multiple -employer defined benefit and/or defined contribution plans that provide retirement, disability and death benefits to plan members and beneficiaries. The City had a total payroll of $6,710,353 for FY04, of which $5,907,740 is covered by PERS, MPORS, or FURS. Component Unit payroll covered by PERS was $43,088 for the Parking Commission, and $211,430 for Tri City Planning. 59 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 Contribution rates for the plans are required and determined by State law. The contribution rates, expressed as a percentage of covered payroll for the fiscal year ended June 30, 2004, were: PERS MPORS FURS Employee 6.9% 9% 10.7% Employer 6.8% 14,41% 14.36% State 0.1% 29.37% 32.61% The State contribution qualifies as an on behalf payment. These amounts have been recorded in the City's financial statements. The Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for all three plans. That report may be obtained by writing to Public Employees Retirement Division, P. O. Box 200131, Helena, MT 58620-0131 or by calling 1-406-444-3154. The City's contributions for the years ending June 30, 2002, 2003 and 2004, as listed below, were equal to the required contributions for each year. PERS MPORS FURS PARKING COMM TRI CITY 2002 $ 212,574 $ 179,112 $ 136,879 $ 3,239 $ 12,103 2003 $ 208,585 $ 177,642 $ 138,247 $ 2,883 $ 12,305 2004 $ 219,461 $ 184,194 $ 163,934 $ 2,656 $ 14,377 G. Post Employment Health Insurance Benefits Terminated employees may remain on the City's health insurance plan for up to 18 months if they pay the monthly premiums. This benefit is required under federal C.O.B.R.A. law. Retirees may remain on the City's health plan as long as they wish, provided they pay the monthly premiums. State law requires the City to provide this benefit. No cost can be estimated for the above benefits, although there is the probability that there are higher medical costs for retirees which would result in additional costs to the insurance program. There are no other post -employment benefits provided by the City. 60 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS RJNE 30, 2004 H. Amounts Due From and Due To other Governments The amounts due from and due to other governments consisted of the following: General Fund: Due from State of Montana $ 550 Due from Flathead County 378,637 Total Special Revenue Funds: Due from Flathead County $ 349,928 Due to Flathead County Due from State of Montana 169,487 Due from Dept. of Justice 20.644 Total $ 540,059 Total Debt Service Funds: Due from Flathead County $100,536 Enterprise Funds: Due from Flathead County $ 107,905 Due to MT DOT Due from Board of Investment 372,921 Due from DNRC 1,151.748 Total $_1 5.2 574 Total 61 48,897 $ 48.897 $ 1,718,744 74 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUKE 30, 2004 I. Restrieted Cashllnvestments The following restricted cash/investments were held as of June 30, 2004, These amounts are reported within the cashlinvestment account on the Combined Balance Sheet. Enterprise Funds Water Bond Reserve (includes SRF & BOI) $ 399,850 Sewer Operating Reserve 129,000 Bond Contingency 650,550 Garbage Bond Reserve 16,000 Sinking & Interest 24,095 Westside TIF Bond Reserve 82,568 _ 3Q J. Restatements During the current fiscal year, the following adjustments relating to prior years' transactions were made to fund balance and retained earnings accounts. Fund Amount Reason for -Ad j General $6,761 Owed to Crime Victims Fund FY03 62 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS DUNE 30, 2004 K. Segment Information for Enterprise Funds The City maintains four Enterprise Funds which provide water, sewer, garbage and ambulance services. Selected segment information for year ended June 30, 2004, is as follows: Operating Revenue $ Depreciation expense Operating Income (loss) Current Capital: Plant, Property & Equip: Additions Deletions Working Capital Total Assets Long-term Liabilities: Payable from Operating Revenues Total Equity $ L. Joint Ventures WATER SEWER 1,652,995 $ 3,047,214 435,757 1,201,870 132,529 233,011 2,772,515 2,464,687 141,931 73,993 1,894,443 7,771,841 15,160,265 28,162,953 3,527,967 4,406,487 10,512,858 $ 21,921,113 AMBULANCE GARBAGE TOTAL $ 1,417,631 $ 579,894 6,697,734 51,355 74,941 1,763,923 72,428 66,966 504,934 27,247 0 5,264,449 37,445 0 253,369 289,885 375,119 10,720,168 426,998 1,036,579 44,786,795 109,390 90,968 8,134,802 $ 281,517 $ 909,165 $ 33,624,653 Joint ventures are independently constituted entities generally created by two or more governments for a specific purpose which are subject to joint control, in which the participating governments retain 1) an ongoing financial interest or 2) an ongoing financial responsibility. 1. City -County Health Department The City -County Health Department is operated under an interlocal agreement between Flathead County and the City of Kalispell. The Department operates under the supervision and control of the City -County Health Board. The Board consist of seven members, six of whom are appointed by the Board of County Commissioners. The Department is financed, in addition to revenue generated by providing health services, by the City and the County levying an identical mill levy, up to 5 mills, in order that all property within the City of Kalispell and all property in Flathead County outside the City limits are taxed equally. The operation is accounted for in the City Health Fund and is included in the general purpose financial statements of Flathead County within the Special Revenue Fund. 63 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS J[JNE 30, 2004 2. Courtyard Apartments/Northwest Montana Human Resources The City entered into an agreement with Northwest Montana human Resources for a joint venture construction project of the Courtyard Apartments. The City owns 16 units of the apartment complex built with Home Grant and CDGB funds. NWMFIR has built 16 units also. The agreement provides for the management of the housing complex for low income housing. All operations and maintenance of the housing complex are managed by Northwest Montana Human Resources. NWM-IR maintains a trust fund in the City's name to record the revenues and expenses of the housing complex. As of June 30, 2004 the equity in the fund was $40,964. The debt navments on the mortgage are paid from the vroceeds of the rents by NWMIIR. The vrincival balance is recorded on the Citv_ 's books in the Lone -Term Debt Group of Accounts. The original amount of the loan was $271,0W. The balance as of June 30, 2004 is $230,628. v M. County Provided Services The City of Kalispell is provided various financial services by Flathead County. The County serves as cashier and treasurer for the City for tax assessment collections and other revenues received by the County which are subject to distribution to the various taxing jurisdictions located in the County. The collections made by the County on behalf of the City are accounted for in an aaencv fund in the Citv's name and are neriodically remitted to the Citv by the County Treasurer_ The County charges the City for fees associated with City Special Assessments. 64 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS AJNE 30, 2004 N. 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. A variety of methods are used to provide insurance for these risks. Commercial policies, transferring all risks of loss, except for relatively small deductible amouuts are purchased for property and content damage and professional liabilities. The City participates in two statewide public risk pools operated by the Montana Municipal Insurance Authority, for workers' compensation and for tort liability coverage Fmnlovee medical insurance is provided thrnnvh a privately administered- self -insured nlan- CivPn the lack n£ o -r-- r-- - -----o-- - - coverage available, the City has no coverage for potential Iosses from environmental damages. Effective July 1, 1987 The City of Kalispell joined with other Montana cities to form the Montana Municipal Insurance Authority, a self-insurance pool offering Worker's Compensation and Liability Coverage. Both public entity risk pools currently operate as common risk management and insurance programs for the member governments. The liability limits for damages in tort action are $750,000 per claim and $1.5 million per occurrence with a $11,250 deductible per occurrence. State tort law limits the City's liability to $1.5 million. The city pays an annual premium for its employee injury insurance coverage, which is allocated to the employer fituids based on total salaries anti wanes The ameements for formation of the nook nrovide that thev will he -elf-sustaining throueh member premium-- The tort liability plan and workers' compensation program issued bonds in the amount of $4.41 million and $7.610 million, respectively, to immediately finance the necessary insurance reserves. All members signed a contingent note for a pro rats share of this liability in case operating revenue was insufficient to cover the debt service. The City's share is $201,445 for liability and $281,715 for Workers' Compensation to finance the necessary insurance reserves. Based on the plan's current financial position, the City doesn't expect to make any payment on these notes. Separate financial statements are available from the Montana Municipal Insurance Authority. In October 1993, the City established a internal service fund for the City's self -insured health insurance plan. The plan is administered by Blue Cross/Blue Shield of Montana. The City pays premiums recommended by BCBS into the City Health fund. The claims are submitted weekly by BCBS and paid out of this fund. The city pays the total monthly premium for employees who only choose to cover themselves. For employees who choose to cover additional dependent/dependents the City pays a percentage of the extra costs. Vision is optional and paid by the employee. A "stop -loss' policy has been purchased to cover any claims that exceed $75,000 per individual or aggregate claims of 115% of claims projected by BCBS. Claims Payable, June 30, 2003 $ 124,519 Claims Incurred $ 1,486,784 Claims Paid $ 1$ 470 139139 Claims Payable, June 30, 2004 141.164 65 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 O. Pending Litigation The following is a list of litigation pending against the City and the amount of damages claimed by the Plaintiff. The City Attorney has made no evaluation as to the outcome of each case. The City has liability insurance that may coverall or part of the damages. Accordingly, no provision has been made in the financial statements for these contingent liabilities. T_1�,,,�r.Pc R�,n.actPrl T_ncc 13-f—tial ICtataic NuPacv.City ofKali spell $70,000v RemoteVU Olson v. City $ 1,000 possible Justice Court Glick v. City $3,000,000 remote MMIA Cameron v. City unknown possible MMIA Bur ert v. City, et al. unknown remote Federal Court Krnckenber V. City Unknown unknown Dismet Court West North v. Ci Unknown unknown District Court Harper V. City $75,000 remote MM1A S. Loans Receivable The City entered into a community development program, which includes funding from a community development block grant, to make available to eligible applicants (low -to -moderate income residents), a loan for at least one-half of the required rehabilitation cost, These funds from the City, together with loans from the First Federal Savings Bank (now Glacier Bank) of Montana, the lender, must provide the total funds required for the purchase and rehabilitation of the housing unit. At the time the bank loans are closed with the borrower, the proceeds of the City's loan will be deposited into the borrower's construction account at First Federal. The City's loan is secured by the property, and filed in a third lien position. Repayment of the City loan will not begin until 30 days after the Lender's loan (second lien) for construction of the unit has been paid off. The City's loan is interest free until such time as repayment begins. The maximum amount of a private lender loan cannot exceed $20,000 per property with a ten-year pay back. In addition, when an owner -occupant is unable to afford a private lender loan at the pre -determined interest rate agreed to by the City and lender, he or she may qualify for City financing. The City may provide a direct loan of up to $25,000 with a varying interest rate (as low as zero percent) or with a longer amortization period (maximum of fifteen years) or a deferred loan to be repaid simultaneously, at a later date, with a balloon payment, or to be released at the end of ten years. 66 CITY OF KALISPELL NOTES TO FINANCIAL, STATEMENTS RITNE 30, 2004 The City has $857,075 recorded as loans receivable as of June 30, 2004 in the Community Development Loan Revolving Fund. The above mentioned loans are offset with deferred revenue accounts. Uncollected receivables in governmental funds are offset with deferred revenue accounts as explained in the "basis of accounting". The following loans were made by the City using Urban Development Assistance Grant (UDAG) funds: A 20 year redevelopment loan at 5% with Big Sky Manor in August 1999. Original Loan amount $ 124,000 June 30, 2004 balance $ 104,641 A 20 year redevelopment loan at 6% with United Way in January 2000. Original Loan amount $ 133,500 June 30, 2004 balance $ 116,015 A 10 year loan with Stream, Inc. at 11 % as part of the package to bring Stream Jobs to Kalispell, The interest earnings are to be split with 5.6% committed to the debt service fund to pay off the Stream Bonds. The remaining 5.9% interest and the principal will be returned to the UDAG fund. Original Loan amount $ 1,000,000 June 30, 2004 balance $ 0 T. City Court Contracts Receivable Contracts receivable of the City Court, because of the uncertainty regarding when and if they will be collected, will no longer be booked as an asset on the balance sheet of the General Fund. These receivables, at June 30, 2004, amounted to $383,306. U. Wastewater Treatment Plant agreement with Evergreen The City of Kalispell entered into an Interlocal Agreement with the Evergreen Sewer District 41 for treatment of sewage from the district at the City's plant. The Evergreen district sewer went into operation in July 1994. The City bills Evergreen monthly for debt service at 22% of the principle and interest due for the plant. The City also bills for maintenance and operation and replacement costs per the agreement based on metered flows. Evergreen Sewer District has an equity interest in the replacement account carried on the City's books. The balance of the account as of June 30, 2004 is $2,528,854 of which Evergreen's interest is $519,893. The City of Kalispell has sole responsibility for the use of these funds. 67 CITY OF KALISPELI. NOTES TO FINANCIAL STATEMENTS RINE 30, 2004 V. Gateway West Mall Flathead County Economic Development Authority, Flathead County and the City of Kalispell entered into an inter -local agreement to purchase 59,000 square feet of the Gateway West Mall for $2.5 million and sign a ten-year lease with Stream International, Ltd. The City of Kalispell agreed to acquire the property by issuing a $2.5 million tax increment urban renewal bond. The City then conveyed the property to the Authority as "tenants in common". The County through the Authority became vested with an undivided 37% interest in the property with the City vested with the remaining 63% interest. As a result of this conveyance, the Authority recognized its portion of the building and the related debt on their books. The Authority is responsible for the operation maintenance of the property during the term of the initial ten-year lease. The Authority is also responsible for the carrying of property insurance against the property. The City has agreed to reimburse the Authority for its proportionate share of these costs. The Authority has agreed to levy up to two mills or $156,000 for the term of the bond, and has pledged $125,000 of the revenue generated each year to be remitted to the City of Kalispell in two equal installments of $62,500 that will be used toward the retirement of the tax increment bond. The authority shall also set up and contribute $3,000 to a building reserve fund each year of the lease. The reserve will be used for any repair or construction work deemed necessary in maintaining the property. The City issued the tax increment bonds in its name and agrees to be punctual in all debt payments, and will keep all proper records and meet all necessary requirements of the bond resolution. The City shall also set up and contribute $5,000 to a building reserve fund for each year of the lease. The reserve will be used for any repair or construction work deemed necessary in maintaining the property. The Authority shall manage this building reserve. The City has pledged the following revenues towards the repayment of the $2.5 million bond: 1. Half of the interest revenues generated from a million dollar loan to Stream ($38,000 per year), 2. An annual user fee that will be paid by Stream to the City equal to the amount of Stream's Montana corporate license tax obligation. 3. Tax increment money generated from the Westside Tax Increment District until the City reaches their share of the debt payment or $214,350. 4. The Authority's annual contribution of $125,000, The County has agreed that it will approve the Authority's levy for an ad valorem property tax of up to two mills on all taxable property in the County, until the tax increment bond is paid. Within 180 days of the payment in full of the Bond, either the authority or the City may give notice to each other of intent to purchase the property. The purchase price to be paid will be equal to the total debt service paid by the other party. The Authority has the first option of buying the property from the City. If neither the Authority nor the City want to purchase the property outright, then the City has granted American Capital a right of first refusal to purchase the property. The proceeds from the sale of the property shall be distributed based on the equity interest each entity holds. 68 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE, 30, 2004 In August of 2003, Stream International closed their computer support call center in the Gateway West Mall building, and subsequently bought out the remaining portion of their 10 year contract with the City. In February of 2004 the City entered into an agreement with TeleTech Holdings, Inc. TeleTech which will operate a Call -in Center, similar to Stream's operation, entered into a lease structured similar to Stream's. Rent abatement is tied to jobs created and maintained and pay. TeleTech will also pay the guaranteed minimum tax payment of $140,000/year. This ensures that the City will be able to meet its portion of the debt obligation related to the Gateway West Mail building. W. Special Items The City reports a special item in the Governmental Activities (Funds). In August of 2003, Stream International closed their computer support call center in the Gateway West Mall building, and subsequently bought out the remaining portion of their 10 year contract with the City. This buyout included paying the City rent on the remaining life of the contract (approx. 6.5 years). Rent revenue was recognized (fund 3188) through the time of the buyout. The remaining $1,322,194 of the buyout was a "significant transaction within the control of management, infrequent in occurrence," and therefore considered a special item. This special item is reported separately at the bottom of the general revenues section on the Statement of Activities and after other financing sources and uses on the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances. X. Subsequent Events Tri_City Planning The City of Whitefish has announced its intentions to establish their own planning office in the near future. This will end their partnership with the City's of Kalispell and Columbia Falls in the TriCity Planning Office. Employee Health Coverage The City of Kalispell ceased its self funded employee health insurance plan on June 30, 2004. From July 1 through September 30, 2004, the City provided employees with a fully funded plan through Blue Cross/Blue Shield, On October 1, 2004, Kalispell signed a 5 year agreement with many other Montana Cities, and through the Montana Municipal Insurance Authority, to create a state wide health insurance pool. 69 REQUIRED SUPPLEMENTARY INFORMATION City of Kalispell, Montane BUDGETARY COMPARISON SCHEDULE For Fiscal Year Ended June 30, 2004 GENERAL FUND ACTUAL AMOUNTS VARIANCE BUDGETEDAMOUNTS (BUDGETARY WITH FINAL ORIGINAL FINAL BAS€SI $ee NM BUDGET Budgetary Fur4 Belalx:e, Jt4y 1, 2003 1,059,542 1.2WA50 1.200,450 - asrestated 1,059.642 IJ93,689 1,193.689 Resources (inTwws): Taxes and osaesspK it9 2.220,125 2,220,125 2,244,771 24,646 Licenses arxd "IS 115.848 115,848 134,583 18,735 Ir1lergovernrrental 2,675,151 2,675,161 2,830,235 (44,916) Chases for s: Mres 691348 692,348 ,3,646 Firlea and forfe%3 s 440.000 440,000 443,646 M1scalane" 68,614 57.614 63,502 5.888 ,m.tinarlt eamrigs 70,000 70-000 28,930 (41,070) N-ada of"term l 152,000 152,000 151.836 (164) TrwVm In _ Prows f m sale of fixed assets A11t ft evailam for approlviallon 7,482,628 7616,775 7574,473 (42,3021 Cflerges to ApirWalms (cuftm): Genefel Gov-ra 1,236,409 1.281,642 t,226,937 54.705 PLm Safety 3,785,098 3,779,159 3,709,529 69,629 PrL$c Woft 354,193 384.193 339,746 t4,447 Culare and Recm.#w 731,950 686.717 703,516 (16799) Housing and Co.....ty Development MisceNarreous 2,655 2,655 1,320 1,335 Capital oudaY 225,600 231.430 234,802 (3,372) Debi service 33,289 33,289 29,370 3,919 Trar9-out WADS 108.806 104,923 3,883 Total Charges to epgropnsli s 6,437,890 6,477.890 5,350.143 127,747 Budgelary Fury Saiarc . Joao 30, 2W4 1,044,738 1,138.886 1,224 330 85445 T COMMUNITY DEVELOPMENT LOAN REVOLVING ACTUAL AMOUNTS VARIANCE BLIOGETEDAMOUNTS (BUDGETARY WITH FINAL 9=3[ I_N.9L ENA(< BASIS)6, N,* BUDGET 638,973 646,709 646,709 638,973 646,709 646,709 868 868 144,352 144,362 183.401 39,049 7M325 791.D61 830,978 39,9 77 125,100 77.100 3,681 73,419 76,0w 123,000 104,073 18,927 20G,100 2001€0 107,754 92.346 583,225 500,961 723224 132263 BUDGETARY COMPARISON SCHEDULE BUDGET.TO-GAAP RECONCILIATION Note A.ExptaneIt- of Difference. between Budoetaryinfl end OOtf. end GAAP Revenues and Expenditures GENERAL COMMUNITY DEV. FUND FUND ftm. aAnftows of resources Actual amounts (budgetary basis) "avaiNble for approplagon"from the budgetary comparison schedule 7,574.473 830,978 Differences - budget eo GAAP The fiats balance at the begirxdrg of ttxt year is a budgetary, resotace but Is not a oanerd year revenue for financial reporting (1,193.689) (646,709) Proceeds from long term debt ere inflows of budgetary, resource but are notrevenoes for finandal reporting purposes (151,836) Tate! reYeroas as reported on the statement of revefxxts, expenditures, and cnanges In fund balances gwerrenerxal funds 6,228,94g 184,269 Use.i-thews of rsaauraea Acaial arrro181L4(budgetary bass) "total Charges to approtaisCons" 6,350,143 107,754 front the blMgetart comparison schedule Transfers to other funds are ou(f mss of budgetary reaawces but an t104,923) notepenSAres for finendei repaling purposes Total spendibes as reported on the statement of revenues, eperAitures, and changae In fund balances- governmental funds 6,245,220 107,754 cI ty of MRWO, Mordana Nwimejar Goverrenenta1 F.." C—Uriry Balance R ieet Jwe 30, 2004 2170 2180 21" 2199 2210 2215 AIRPORT TAX INCR. AIRPORT WESTSIDE PARKS IN LIEU AQUATIC INCREMENT INCREMENT FACILITY ASSM 010100 Cvsb/lpvesimepa (uareslrlcled) 5 59291 S 1056 S 1593350 S 97502 S J 60 $ 37765 Total for—blnwrat—t S 59,291 5 1,056 5 1,593,350 $ "5,02 S 3kw 5 37,765 011300 Taxes repdva6k-real esww S 17,785 S 26 011500 Taxee Rcdrebk - pe—w property 1"55 00 011800 Bpedd Asnnpmepa recekabk Total far combined xawme9l $ 0 g 0 5 29,140 S 446 5 a 5 0 012000 Lpaprrecdvebk 013000 Dpe Tram atberygavelumepa 5 46,30 014100 Prepdd expepolweea TOTAL A588T5 $ 5%291 S 1,056 5 L668,819 5 973,880 $ JA,60 5 37,763 LLIDILITIES AND FUND EQUITY: 020200 Accouua peyabk S 1,126 S 1,056 5 280 5 43,905 021200 Due T. (Rd lvvge, etc.) 48,897 W0600 Accruedpayabk Total for combined alaW—t 5 1,126 S L056 5 - S 49,177 S 5 45,905 022300 Deferredreveeue-Imus"eeivabk W2310 Deferred feye0pe-red 4)p—t lases S 17,785 5 28 W2320 Deferretl reveppe- perxopd properly wxea 11,355 420 W2330 Der—revenue-epedal as mend Tpwl fpr combloed ataament 5 0 S 0 5 29,140 S 448 S 0 5 0 TOTAL LIABILITIES S 1,126 S 1056 5 29140 S 49.625 S 0 5 419" M5000 De gpa/w Fand Daance W7100 U—serves F-d Balance 5 58163 S 0 5 109,719 S 92612MM S 36,60 S (8140) Tpml Egdty 5 M8165 S 0 $ 1091719 $ W6,25M 5 38,643 5 (8.140) TOTAL LIARILITIFS AND FUND EQUITY S 59,291 S 1,056 5 1,668,859 S 975,880 S 38,60 S 37,765 72 City Pf KaUspek Wnt000 NOnmmpf Gmem."l Fu3ds Corn61NR4 Baler St" Jute 30, 2004 2360 2370 2372 23So 2394 2300 COMP. INS. 1IETIHEMENT PERMISSIVE HEALTH BUILDING LIGHT HEALTH LEVY ENFORCEMENT MAINTENANCE ASSETS: 0101o0 Casp/lpvnlmep is (pprmErleiad) I 95318 b 84078 S (28919) I 158,313 S. 323858 S 23,315 1'aw.1 Opmbined slntemapE I 95,318 3 84,076 S (28818) 5 168,313 S 323,838 3 23,315 0113W Tares rp<elvn6k- teal <sEa€e S 19,774 S 24,75E S 12,152 5 21,758 of 1300 'tarnreceNade-persapai property 10,887 15563 11,449 17,547 .,.,0.0 iotgl lm'comMUM,s[attmep€ S 30,661 3 40,319 S 23,601 3 39'303 S 0 5 9,410 012000 F.osus recdva8k 013000 Due from plh-vgpvemmepis S 31,b o S 47,207 S 39,249 S 52,764 5 23,104 ol4100 prnpold<2pemdltm- 59,181 TOTAL ASSETS S 216,590 5 F73,66.4 S 34,032 S Mo,382 3 325858 I 33829 L ILITIES AN D FUND EQUITY: 020200 Mcounh payp6h 5 23,92E I 12,053 S 10,616 02120R Dmn Tp (Refalamgk lt<.) 02060U Accrued PmSBbk 5,372 ,W tmT cmmgned sEa€ement I 23,922 5 - I 0 S 0 S 17,425 S 10,616 022300 ➢erermd revenue -Rasps reee bk 022310 Def-. revenue - UW & prprnt Inx<r S 19,774 1 24,73E 5 12,152 3 21,758 022320 Deterred revenue-p-..&pr<perty W. 10,881 15,563 11,449 17,547 o22A0 13<terrxI revepue - spedml asxe-.0 I 9.410 Taw tpr comdped statem<pl 3 30,661 S 40,319 S 23,601 S 39,30S S 0 S 9,410 TOTAL LIABILITIES 5 54583 S 40319 5 23601 3 39306 8 17425 S 10026 023000 I"- Fnnd Bnlunce 027100 Unreserved Fund Bmbnex 3 162007 3 131,285 B IOA3,1 S 223077 3 508,A'J3 5 JSBOS Taw Egdlty 8 ]62.009 S F31�85 6 70431 4221077 3 308,9J3 S Jk803 ]'OT AL L3ABiL1T1FS AND FUNDEQDITY 3 _216,590 S_._.. 113604 5 34,02 1 260,382 3 325,85E 5 55,829 73 Gty o100.pd, Mmtana Nomma]or G-mmerlmi FmuJs CorrAirnng tlelelrce Sheet J- 30, 2OD4 2A0] 2420 2500 2606 2825 2882 2886 DECORATIVE GASTAX SPECVL IRBAN FORESTS MACI GRANT COURTYARD UDAG LIGHT MAINT. STREET MAINT. DISTRICT MAINTENANCE ASBETB: 010100 Cash/Imeslmeols (uoresrrkted) i 6,830 5 341913 S 176�082 S I8139 S 34,869 S 40964 5 1,266,23E Total for-.t4mdstuFemevt 1 6,850 5 342,913 S 276,082 1 18,139 S 34,869 $ 40,964 5 1,266,231 011100 Ta3esrece .bw-realestare 45,312 E". 011500 Taxes re 6-bfi,.- persoval property 011800 Svevel Assessments recelvabk 6 366 Total far eomblved sUL .t 1 3" 5 0 S 45.312 5 6,841 S O S 0 5 0 012OW LomarecelveE9e $ 32o,6:S5 013000 Dne I- oibervgaeeramente 5 1,149 9 113,90 S 13,214 014100 pmpalde pevdltures TOTAL ASSETS 5 8,365 5 342NI3 E 433.337S 38,094 S 34,889 S 40,%4 S 1,486,886 LIABILITIES AND FUND EQUITY: 020200 Accnuvts payable S 302 S ll,%l S 6.170 S 704 S 34,689 S 0 5 3,23A 021200 Due 1.(ReWnage, etc) 2,233 020M A -,d pvyabk _ 9,470 2,247 _-_ 5,370 T'otaW comldved atalemevt 1 302 S 14,394 $ 14,648 5 2,951 $ 34,889 S 0 $ 10,604 022300 Deferred revenue _ ]Duns rece Ift E 220,655 022110 Deferred revevue - rn i protest taxer 022320 Deferred revevue- persoual property lases 022330 Deferred revevue-spedalasaeumeuta 1 3" 8 45,312 5 6840 Total for cem blued atatemeo$ 5 366 S 0 5 4312 5 6,"o 5 0 $ 0 $ 220,615 TOTAL LIABILITIES S 668 S 14194 $ 59,960 $ 9791 $ 3ge89 $ 0 5 231,259 025000 Desfgvalntl Fund Bulauce E 36,418 M71M Unreserved Fuvd Balance S 'r 697 1 328 719 E 315,371 5 28.363 3 0 4,546 5 3,255,627 Thal Eqully S 1697 5 328719 S b] 11 E 28303 S 0 5 40964 5 1 5 627 TOTAL LIABILITIES AND FUND EQUITY S 8,365 S 342,933 S 01337 1 38,094 $ 34,589 S 40,964 S 1,486,886 FID City of Kalispel. Wrdan8 N-ajor Curve n-tel Folds Cmftirdlg Balaoce Bheel June 30, 2004 SPECIAL 2914 2915 2936 2917 2957 2975 REVENUE FUNDS OLICE AESOUR(OLICE R"OUR(DRUG ENFORCE UNIVERSAL FENIA GRANT ISTEA Toml OFFICER OFFICER(2) GRANT GRANT ASSETS: 010100 C a sb/luvestme¢la(,,m,ticted) 3 1199 S 112100) S 11581 S (5399) 5 12,69b $ (529J9) S $,]24,512 Total far -.blued slatemen l S 1,199 1 (12,1 W) S 11,581 S (S,SY4) S 12,696 S (52,9J9) S 5,314,512 0113M Tvees reeelvable-real W. 5 148,40b 011500 Tares recelvabk-p,m,Wproperly S 67,221 011800 8pedu3 Aasessme¢Is €euelva6k - 9,77U Total low mmMM sis1.-1 $ 0 1 9$ 0 5 0 S 0 3 0 S 215,40 O12000 Lawns race W 5 220,655 013000 Due from otherYBovarameoh 3 13,144 1 7,500 16%467 S 558,d60 014100 P,ep expe¢dit.- 3 59,181 TOTAL ASSETS S 1,199 5 3,044 S 11,181 3 1 906 S E2 696 5 ] 16 S4H / 6.379,211 LIABILITIES AND FUND EQUITY: 020200 A-.6 Parable S 3,610 S 3,472 $ 91,820 S 253,129 021200 Due To (Beta uv, etc) 8,2% $ $9,420 V2a011a Aecrued payab4e 5 I19Y i l044 ] I m 3 1,492 26574 Total fora odemmme¢t S I,199 S 1,044 S 4,990 S 1,49E S 3,472 $ 100,I1e 5 339,122 022300 Deterred revenue-baaarttelvebk S 220,655 022J10 Deferred reve¢oe. red&p"A ttaaea 5 %,153 022320 Deferred revenue. por.. I properlyla$es 5 67,221 .2330 Deferred IeVellue - apeCW aasesam8ats 5 61.928 Total for eamt8¢ed afareme¢t $ 0 S 0$ 0 S 0$ 0$ 0 3 446,057 TOTAL LIABILITIES S 1199 S 1044 S 4990 3 1492 S 3472 3 100110 S 785,179 025" Designated Food Balance 3 36,418 027100 Unreserved Fund Balance S 0 S 6591 5 414 S 9224 S 16438 555, 56,614 Toml EgoEy $ 0 1 0 $ 659] S k74 5 9224 $ 16438 $ 5,593W2 TOTAL LIABILITIES ANb FUND EQUITY E 1 199 1 ] 044 S 11 "1 5 1906 $ 12 696 1 116548 $ 6,378,211 75 City of KENSPON, Montane NomlBpr GOV ntml Fwx% Com ring 6elan Sheet J— X. 2004 301(1 3188 31IN 3594 3595 3596 3597 O.O. BOND W STSIDE TIE SID 9Ebles REVOLVING 19945&C 1995E&C 19968&C 19975&C Assers: isp]. s8�,9lppp 010100 Cah/l.... tmeais(ppresOSW) S 61P15 S 327385 3 71803 5 $34 5 13 Total for-.. .staiemeat (61,775) 727,385 71,803 - E34 (2113 - 011300 Tams ree 4t bk -real estate S 12,424 S 33,713 011500 Taxes r'tteieabk-Pers 1Pmperty 12,993 11,438 011800 Sp —Assn Tpfl tar camdpen smtemeat S 25,06 1 45,231 3 0 S - S 154 $ 1,549 S 1,744 012000 Lapps metimble 0"0% Dae from ath—g9verpmepls S 45,000 3 35,O00 1,121 S 164 5 217 3 34 0141N Pt I,W eapepoltures TOTALASSETS $ 8641 S 407596 S 73924 S 3 1152 S 1555 S 1748 LIABILITIES AND FUND EQUITY: 020200 Accappfs Payable 021200 B- T.(Ret W ge, etc) S "I $ $71 020600 A--d-,.bla Total far —blued A t—t 5 0 S 0 3 a 921 S 0$ - 3 571 022300 Deretred reveppe-Wass—e .bk 021310 Dererretl tevePue-reel&Prplest tams $ 22,424 S 33,773 m2320 Deferred reveuoe- Perroppl Property [asn 12,992 11,438 022330 Deferred revepue-rpetlal ps —.b $ 134 S 1549 S 1,744 Toll for—bl—stafmmt 1 25,416 S 45,211 3 0 $ - S 154 S 1,549 S 1,744 TOTAL LIABILITIES 3 25,416 S 45,211 5 0 4 921 S 154 5 1,549 S 2,315 025000 Deslgppled F-d Bab.® (16,775) 1 362.385 73,924 (921) 9" 6 (517) 027100 Upremraed F-d Babace 1'—Egpity S _ (36175) 5 362,385 S 77924 S (921) S 99S S 6 S (S17) TOTAL LIABILITIES AND FUND EQUITY 3 8-1 $ 407596 3 '13924 $ S 1m 1 1515 s I798 76 City of Kalispell, Mont— N—Jm GOvemm UW Funds C-dAnvg Belerme Sheet J— 30.2004 3198 35" 3600 301 36M 36W 3641 1998 5 & C 19" 8 & C 2000 8& C 2001 3&C 1002 6&C 2001 SAC sID 313 ASSETS: OIOIW Caahlleveat.enas (uvres€dd d) S (J34) S &707 Total for —w-d s.(—t - - - - (334) - 5,707 011300 Tazes recehaWe -real eatak 0115" Taxes r0 "We- persvml property O.S. Speem�Assessmentx recervabk 1 633 S sm S 1447 S 907 S 11322 S 13758 S 36997 Totalfor comblved stakmevl 5 633 S 804 5 1,447 3 907 S 12,322 1 13,758 $ J6,997 072000 LOava re MWe 013000 Dec fad. nth.mgmeivmeaq 334 1 2" 014100 prapwd expenduum TOTALASSETS S 03 S a" S 1447 S 907 S 12322 S 137% 3 42992 LIABILITIES AND FUND EQUITY: 020x00 Aeconntu pryubk 12..,, eaWmn�.d..) 628 020600 Accrued payable Total lar m.bWed Mak—f 5 0 3 0 5 0$ O S 628 5 0 S 0 W2300 DOeared "'Na. - loans receh Oix310 Deferred reroeeae- rent&protest toes 0223I0 Deferred revevve-persvual property taxes &12330 Deferred revevue-Npe levessmenW E 633 S 864 S 1,447 S 907 $ itJ22 S IJ,7I S 56,997 Told for..IWed siatemeut 5 633 S $94 1 1,447 S 907 S .112 i 13,758 $ 36,997 TOTAL LIABILITIES 6 633 S 884 S 1447 S 907 S 12950 S 131m S 16997 025000 D>dg.akd Fuud Balavice 0 0 0 0 C628) 0 5, 995 027100 Doreeerroed Fund B ..— TotalEgolty S 0 5 1 0 S 0 5 (628) S 0 1 5,995 TOTAL LLABILITLES AND FUND EQUITY S 6J3 3 884 5 1441 S 907 S it 694 S 33758 S 4E 992 77 aty a xdvd, Mo dene NW"pr Cmvenu w"I Flrtdo COtnb nng Balance Sheet JYIa 30, 2004 TOTAL 3642 DEBT SERVICE FUNDS AI% 42" CMITAL NONh OR SID 342 TOTAL FIRE STATION SAC PROJECT FUNDS GOVERNMENTAL CONST CONST. TOTAL FUNDS ASSETS: OI OIW Ca"._tme¢lv(u¢restrkted) S S,6d4 S 352,053 § IdS250 S ]45,250 3 6,a8,,,,,,,�118I5 Tow For c..Wel stateme¢t 8,644 352,OS3 1d3,350 145,250 6,811,815 0113W Tares reneNatae-real eslnte S 46,197 S 394,603 011 SW Tares receivable- pers¢nat property S 24,430 f 91,651 O1.4 SpeQal A,.-....receAabk S 28,936 3 99,332 S 109,107 Tow for c¢mb€oetl aratemc¢t S 28,936 S 169,9m 5 395,361 012000 Loans re d bk S $ 220,655 013WO Due trout aturwgovernmoab S 83,178 S 641,W8 0141 W Plepeld expmditwe, S 59,181 TOTAL ASSETH S 37,580 S 605.1 B9 5 145,250 5 S F43.250 S 7.129.650 LIABILITIES AND FUND EQUITY: 030200 Aecoauts payable S 3,322 S 3,321 5 256,450 021100Be. To (Retalnage, etc) $ 2,120 6,797 S 6,W7 S 68,337 0206W Attraed pa➢aae S 26574 T.W for comblued st Wruout S 0 f 2,120 3 3,322 S 6,797 S 10,119 S 351,361 0223W Ddthvd revenue - loam re Hd bk S 220,655 022310 Deferred revenue- real A protest tmm S 46,197 5 142,450 022320 Deferred revenue- pen9uai property taxes 24,430 3 91,611 022330 Derr- revenue-spe laS Meer, 3 A06 99,331 S 161.259 To. for comMned statement S 28,936 S 169,955 S 616,015 TOTAL LIABILITIES § 2Q936S 172,MS S 3,212 $ 6797 S 1Q119 f 9.7,376 023M Designated Fond E±aboce 8,644 $ 433.111 141,928 (6,797) 3 135,131 S 604,660 027100 Unreserved Fund Bob- $ 5,556,614 T¢WW E,elty S 6644 S 433.791 S 141,928 li (6,'➢97) 5 133,131 3 6,161,274 TOTALLIABILITIES AND FUND EQUITY S 37580 5 603,189 $ 145,250 S - _ S 14 250 $ 7�J2 6" City of KailSW, Morftna Narlme[or GovammeMal FUWS CmUning Slate M of Reveawgs. Fxpere Ues arW Charges 1n FUM Ba as For Ore Year Ended Jane 30, 2004 aWm T>x av5 Linamm napvn l'm wm4ae air PVNam yam .Spoke comoraeWe aeam,m rfmar Wmpm RHVHNVM 3100W TOW area f I'm a of y aabaa'/ S vaAsa 163M TPtal aaaessaeuta 320000 TO6dk.fe (W-lla 3300M ToWW.rgovorPaeP101 3,aai 1+.Tel wA1i 340000 TeW charges foraerWcea v,f^�a asya t esMa s tayf4 360000 'Total ufUcagaoeoas ra,trs k,us 37000D Total laveataemlf TOTALREVENUHB i Y9A1 S f t slatf f MIA. f Sas lw HBPHNBTTOH.Bs: 410000 TaW geuerat govr� ea1 t 420000 Total poW urety rva+L 430000 Toai p.W work. S f,an f vala saw 460000 ToW ult—&.,— . aw ys.af v,au 470000 T'aW roaauaaty developaeal i su�u 490M Tatal debl seM S10U0o 7atal alecegaaaous s SVATS aw 900 -pllm ODUq ik TOTALE)PENDITURls Sara t ax3U s .wsp S n s i Hicee9 reveptle aver {uatler)eapeamturea f rsf S aafse afAw f ,A 3 ,Iea 3H00pp OlHmr ]aAPrmgfourcef (axn): 3MO14 Sa of Wr 391070 Proceeds aT W. 383000 Oprratwgbanareralu eafAw axTHPo opar.unglr.airn(Pnp s m,ial sp.w laa Hxceaf Peawm9eb aatl other sourLYy aver (amder)eiPmmm.— aad other uses s UFM 1 rt ml) f Aaf,lPk s w. s 1T9L4 s A1♦a1 3 0".) $ Feud Balance Jolt' 1, 20W i vAaa a sv wk f f iifaaa i asf,ia s 4"' s y aU,a» s ysaAm Prior ParHW Ad] Food pplapce Juoe 30,2004 T a,14a S 9 kAE/.R19 s sL<$SS S as,afy 6 @dAtlk S 4SAo'r s 79 CRY of Kafgpef, M.A.- NamrmJar Govern —tal Funds Combining Statement of Revmaes, Expendihaes and Changes in Fund Balemes For the Year Ended June 30, 2004 Pembdve N�6 gddbf CNe M� cu Tv MW�RLm Htlnmeece [ddd Ntim. Mrlmmou REVENUE.: 310006 Tata€far.. f :4..nr f fea,xr4 .000 TotalanaeRemenEs s tm,las s ade s smrn 310000 Total kedseYperdits i rf2.W 330000 'rota€ mtergmernmedtal SAW t -.Na 340000 Total chnrgn for —1— �,an 360000 TotaltAnallasmas 370M Tola id—ria..6 T[lrnl. NFVrfxt�na sdn s9r4 MEND TURNS: 410000 Tolai general governmedE s n,as i srAn 420000 Totalpubfesafety mYn -Am t sv)ds 430000 Total p.bec aorlm vpza n— f smttz S ey4n s Vu,- s � As , 460000 Total culture&reereutbn TSA31 NASB 47000€I Toudcommuullydevelopmenl 490000 Total debt %,r esA 5100M Totalm6ceganeda. 900 Capital Outlay M s4.nx TOTAL EXPENDITURES s zwgn f svyu s f i eef Eue.. revenue over (ander)expeddlzdra s sxa9. f s— r s f i ss s 3600M Other an...WE sources (uses): 302014 SoNofmnd 381070 ft—ed. ofmau s atAee 393000 0".U.g transfers to lAv 321000 Operalmg"Intel,(.at) ,P.m ltdm Est— revenues add abler awns.. men (uuder)espe.df.— and other.... s W. S s,m s ;;'rx f n,fea f ll.yd S ss3m Mudd Balance July 1, 2003 f rs,afst s uvaw r an sw f rsfa s t1U S aSAD f 3.x, Prbr Pedad Adl Ebro Do.." June 30, 20.4 sse,ur s sp,nti f ss,ees s 1{m s nnsyn 80 City of Kahspd, M-tt . Nmmajpr Gevertwwol Rnds Combimnq 5%Wm 4 of Revenues, E)pendlgaes and Creanges in Fund Balances Fw the Year 6EtdF dJ-30, 2004 n,am Farulrr fLIR ¢:� }btE Ceee4 6DAG ♦enrc 991e lt♦n Dee♦ Apvzmomn smmre ee..RP) REVENUE$; 310000 TOW Ewes 363000 TOW emesamevtt tess/r 320OW TOW acm—pervdte 33OW TOW lntergvreramentul ! SSB S 4s➢d♦s f S♦.uoe 5 u♦At5 S 45,♦A 34WN TOW cfiargn for xrWces , 36000O TOW mhceBaDeaus S ssaB/ 370000 TOW /nvesivs¢vb is t s6fASe TOTAL RRVENURS uue,au t 4v,s♦t s sea,'ns t ,uses s w,wr s EXPENDITURES: U." TOW geaerm govern.... 420000 TOW pnbac safety t srAw s ayn f usasu 00000 Taw P.w w'Orks 460000 TO cWtum ✓& reerestten t tu'rre 470000 TOW commnulty de i-pvseut t xa9 s s.a. 4,00" TOW d♦bt—ke M(Y9Y .,TOM TO 0bceg♦veDns ROO CaplW Ov" t s�rAy TOTAL EXPSNDITURXS a sztiAw f saws s nsss t ♦ew E—revenue aver (nntl¢r)Mpeetll.— t XO t f clf f - l fllI 5 3SOOOO oiber tivasdpg s♦arces(us¢s): J82O14 Eak ♦r laud J81070 Pracxdu Of Man J83000 Operating Sransferem f ISRn sra s sr,se♦ 5210W Operetingtrarzst—(Oul) sAtvl SpecSal Item Efcess reveva. ead Othv 5♦areeb Ovcr (uuder)e Pmdlt—dad other Ftte9 S 19At4 S ,4w 9 1 f 4u,r i"I S S a t Lf'9♦ Fond Balance July 1, 200) f nalt t wsw f uisw 5 '-4. f LtSW S ♦ S S,wf Pd.r Perlad Ad] Fund B6180ce Juse J0, 2004 i wdm t > i NJ4s S sari7 f sArt 9E " f Kefsped, M-I. m NWMfC Goverrtnerlml F1f e Combirdng blatemem of Revenues. Ezpendibres and Charges In Fund Balances Far- ft Year Ended June 30, 2004 am xrn xF» nu.svu con c..m err, c.m,r ear. bFina...o.. .�... cr.w m3mn ce•,c�A Sm mm w.r c.r rw umn, RRr'RNirRR: 330000 roW s>am s ,am,s3. 3.000 r'aW •SeefameaU f !AoAo 320000 Tmal Rcen3e3�permRi F 330M Toinl WergweromenW s nAoe S zrAm s zSAn f a.Aw f i»,zm s i IAn,S3F 3g0000 'TnW cb•rgeareraerWeea f nz,4n 3gt1000 roW mlvicer•atagb K x,3fe f m,n• 170000 r•W Invnimenl• x s x•f,ass TOTAL RMNURS i F m.Ai'! f Fff ii6 E A�r.Fff f 0.)3653• MRNDI'€i1RE8: 410000 TOW general g•veFamebt 42. T•W Pew safety 430000 TeW Mar PdW ge 460000 T•W cWtufe dt reercaxb0 4'l0000 TOW commumty deveiopmeel 490000 roW debt rCroce 510000 Tow 'hceLoeoua 900 CapIW Outlay TOTAL EXPRNDITURRS Rxcma revebue over (under) espredtmr. 390000 Other Mentlng eoureea (ueea): 3.034 SMC of lend 3a1070 Proceeo."f n 3R9000 Oper•deg t-fenm 321000 Operaamg tn03fem(aol) SpeeW Item Raresf reveuue3 aua other s•urm over (..der) expenditures and other usa Fond Balance duty 1, 2003 Prior Period Ad] xuva Bale•ce 3a•e 30, a•o4 i Fn,m f BBAK F vAK f FStAN f IMl.v9 s rn,•ss f U47 f MI. S 63,x]4 f iN33] f vAo 9 W,o, A'/tb rS,nF i Atha?l� E fFAK s 'iK f uM3 a F4FMi S FnA•i s S�4,xn s s s • s s s +n s .m,nss f SFAbI s uf•r s n,no s ca.sen s S f • s o s S pAw f uMfWoe s • s o f • f • F•.Sex s f L'%L•,aTt f e s e s a s r,xx• s m,an s.f•x•sx 82 REVENUES: 310000 T.Ud luea 363000 TOW.wesfmo 320000 TolAke..e W,vads 3300W Total Wlergiweran..W 340000 TOW Cparg.s for servlees 360000 Told mlece0a.eo.a 370W Tofnitvvnlmenb TOTAUREVENUES EXP$NP1TtTiMS: 410000 T.iel geveld gavemmept 410w To/d p.bEsfafety 430006 Total P.bk Storks 460M Total curt... drem..dvo 4700W Totel.pmm.m[y devervpne.t 490M T. .1 debt fervke 510000 TOW wftcega-- WO -P.d O.Oay TOTAL EXPRNDr"M E.--..e oven (..der) aapeodiiura 3801r00 Other 51.a.png Soarcea (.u1): 3MO14 SWe or le.d 381070 Pr —&of Ine. 383M Ope..d.8 tr.vsfels W 521000 Oprrativg Era.Ifeta(..t) Sp. w Ilan Ef.ess rovep.ea..a o05e. purees over (..der) espendu.res aad other uus Fund B."—JWy 1, 2003 Prior PeNOtl "I ELad Balance Jane 30, 2.1 City of Kalapel, MOMarm Non .WCnovelrg nWi Funds Co00-p 5tat.—vt of fteverares, E2p-dlfi es end Charges in Fund Defences Far the Year Ended J-e 30, 2004 30in MU 3500 3594 3595 3596 3597 35" C.O. BOND VYF8T8IDE 8[D 3994E 8.0 1995E tr.0 19969d,C 19975&C 1998E dkC TIF ea MM. stems ufx seams z9I9 11we f E5f}tt i L434€ 1 2L f @ 5 S,afs f €,eis s 1,aM s ns Lppaa st,fn mf}W 1, Et i. n. S E9e}ri f f4.'- I - I 6E f a,4as f €3i4 f IA59 f 1M. te137f S.slfdle 2F E,7ff r.r.M ax ]%)Sb f 3953tsa f 5 E}K i 62 t 3t5a f ,us s fa19,W 13E1,1ff s s St s m. s u4 s w s I An I b]44L0 s ]t}m 1 nit) s 1. 1 oea) 5 lMT) s p 1 f f f3924 1 t f - 1 a f m f 83 GN of K.I$pal, tUOWana Notanapr Gowenarrerdel Furls Corbining Statement of Revenues. Expenffl a and Chenps in Fuld Balances Far 81e Year Ended Jule 30, 20D4 3899 3600 3601 36M 3641 36Q DEBT 19W S&C 20008AC 20018&C 2002 SE,C SID 341 811)342 SERVICE FUNT REVENUES: TOTAL 310M TOW Wo i 363000 TOW mmssments s ats s S5f f wa f seta s '/Nt a nAax i aaApx 320000 TOtW jc n p rWts 33MO TOW IntergorernmenW S SOlAt4 3400M TaW cnarga for x5rlcei f u;ew 360000 TeW M,cdanepas t las,SOs 370600 Total WroWenla f TOTALRBVBNVEB _f Dr3 f 451 i 2N t l9➢N b 1Aas S SyMl a.enF,Wt EXPENDITURES: 410000 Tn W ge—W gov .—t 4200H TOW publ, safety 430000 TOW pokWON. 460OW To W c&.. a weCYCail6p 47WW TOW e,m,,Wty der pWepl t _ 4900W Total dent cervlce I. 144 - LEn )AU M'..3a t l.An 310000 TOtalmace0epepns f 900 Capita OuOay TOTAL EXPENDITURES s Su i w f xsn s 'rAn i 1 s91aAu EaCc»,c i a s a t a i ers A N -^ai S tstarixs 380000 OInFa Mantlng aource5 (uses): 392014 8We Of Ipnd 381070 Proceeds Wban aw"o Operadng I. fans in 521000 Ope.Me ttansfers(000 (6SOA101 SPertsl Item f31f,a94 HScess reveaaOA and ataer saprceA aveF (npderj e5pendltureA antl atber uses s 9 i i S ra f s txea'>a5 Fund Balance July 1, 2001 5 O s o f O S • s f,MO 4 n.us f iasA® plur Period Ad] N'uad Balance. Jane 30,2004 t S f S (6281 t 53N5 f sAaa 5 84 of Kal-pl* MW0url0 NOranapr Cwvenanerrtal Fva1s C—U,.ng Satemert of Reverxres, Eaperd&es and Chmtges in Fad Bal-5 For Uw Year Ended Jix 30, 2Q04 4150 4190 Cerr,w Projeet TOTAL DR FIRE Wa&&Curb Faads NONMAJOR STATION Conabuctivu GOVERNMENT, REVENVES: CONST. TOTAL FUNDS 310M TnW Gaga S 1,972,113 36300o Totalassendmats S 1,131,161 320M Tottl Scea, l—dims S 292,130 33MW ToW mtergovernmeata€ 5 1,541,222 34NO ToW charg. for werd., S 283,345 360000 TOW udacegaoeoua S - S 632,276 37GON Total lvveatmeata 1.161 $ 1,161 $ 93S1654 TOTAL REVENUES $ 1,161 $ 0 $ 1161 5 6,786,5a1 EXPEN➢!TURFS: 410000 Tow geaaratgove--d 142,5w 410000 ToW pabk mfety 1,441,129 430000 ToW pubkc work, 1,175,%l 460000 T9W culture & recreation 322,729 470M Tow rnmmuahy 41mlopmadl 764,357 490n0a Total debt service S - 2, 012,528 510600 Tow mbcelaaeoua S 333,993 900 Caphd Outlay 3,447 __.10 556 S 24 tl01 1,45a,5_20.. TOTAL HYPENDITURES $ 3,447 S 20,556 S 24,003 S 7,650,162 Excaas revevve over (uutle) erpedmtarm S Q,2861 5 (20,5561 S t32,B421 S (861,761) 3a00oo Other fldaaang saa—(uses): 162014 Sale of laud 38f 070 Pracma, of Imd S 13,759 S 13,719 5 65,759 33000 8Operaffag traoafers& S 40,000 S 40,000 5 793,111 521000 0", tIng tr4uwn,(.at) 5 (6mim SpeeWl llem S 1,322,194 Erdeas revedaes aw Omer sources over (udder) erpeaduene, and other usn S _37,714 S _..(6,1" 5 30917 S 631,114 Fudd Sala dce July 1, 200 S 104,214 S - $ 104,214 S 5,mo,160 Pdor Period Adj - FuadBalauceJuae10,2004 f 193,928 S (6,7971 S I]5,111 S 6,F61,274 95 REVENUE: 310000 Total taxes 363000 T—s Aawasmeuls 330M Total lnlerg—rumenlal 340M Total bargee for services 3610% Total Real 370M Total mvaatmeat TOTAL REVENUE CKy of KOIISM, Morltent SPD 343 Debt Serviee Fund Scned,W of Revemres. F-vot,ol88e9, and Changes in Fund Baoiri e - Budget and Achiel For the Year Ended Jure 30, 2004 BUDGET ORIGINAL ACTUAL & FINAL VARIANCE S 16076 S 114,965 S (14,589) $ I60,376 S 174,965 S (14,589) EEFRNOITUREB: 490300 RID. bond pd dpal s 105,M s 105,o00 s - &J.D.bond Ink-1 6610" 69,715 s 3,625 &I,D. bondag.ttf— 40 250 S (150) Capitol OOeay TOTAL S 171,49a 5 174,965 S 3,475 Estes vevetuel over (noaeO eepe0dl1— $ (I AI O S S (11,I14) Other Maatlng soureee (n ): 380000 Bporm it.. 521000 Operclltg 0—fem (tat) It= revevaesa0dotheraaorcea aver (uviIg ap--mires aad M. uses S t11,114) s 5 Fond Balance Jaly 1, 2003 Residtal equity trsa.f Fond Rotate. Jute 30, 2004 S HIM S 111,082 S 99,968 S IJI,0R2 s (11,114) 86 City of Kalispel, Mor4arm Pool CanahiXton Fuld S0. W. of Re nim. Eve"Itir., aW Charges in pmld Raloncea - &rd9el tout Actial For 8m Year Ended Jae 30, 2004 BUBG&T ACTUAL ORIGINAL. FINAL VARIANCE $ 1426A S 10000 $ I0,W0 $ 4360 10000 S 10000 $ 4266 3 2,545,527 S 2,610935 $ 2,694,128 $ 148,6ir1 $ 2,545,527 3 2,610,935 S 2,694,F28 3 148,601 312,537.2591 512,650,9351 S{2,68b,I28) 5 152,8b9 5 2,679,860 s 2,619,860 S 2,679,860 S 140601 $ ba92$ 1 (4,268) $ 152,869 City K8&apel, Monfene Nanmapr GOVmflin0ntal Funtls Scne* a of ROVWWs, ExpeWM—S and Changes in Fund BelaacoS- Bbtlgel and Attnl For Ete Yeah Er,:Wd June 30, 2D04 Aased iu lSw ien®d¢ n5n. nlgediR _ _ � � t^add Yl xmsaw. pwfd. goaf«-umar 8.4d h.dyd� REVENUES k.d Fia4 V.a®<e AdoJ oArOetlTlvW W..fu« 310000 Total tries s mian s xm,.OS s a5x S W S iw i iw s (wq 3C3o00 'lotw asfefamevxa 320000 'Tolalg0enseslpermRf 33000o Total iafergorervmenial S 5,fv s 13aa S rx" 3AW W ToW charges for sefvkes sb313 s lEAas 3 sn nrif s 50,f5a s 2S3sf w� p,o5i s 43,xw s :.ysa 370000 TUtalinvestnunls � uvsx feaae S sdn ___� - 5N0 f v,sos S -� m• - �• TOTAL REVENUES 5 x 5 21Aso f zAP s a101m f S5.}w 5 13w t eZw s au,aw [a,aw s gAw i u,>w EXPENDITURES: 410000 Tnlasgeveral government 426M Tntai p. kaefety 430M T'0lal pvblcw" s ebaa S w,3w 5 31 t13 9 "XI s .,f. 400000 Tefa1c00ure& racreadnv 3% s Msl 47000a T.-c¢mmUWfy development Sf,gm s Ss,ans sw}la ra.fw s Nna1c s a'l aos 490000 Total debt Sarvke 510000 T. Svhce0ave¢m 900 Ce Wtai OnBaT 5m,511 Sg,511 bfAM in3x3 s n6,9xi axA1f s awsof s sayer TOTALEXYENDETURES s 14. s u,f9f s 3SSSS s —mi s ".. M. 5 i x,4si f SvgfiB 1 ma3s9 S -4. f uv.BB9 f '1wAif f s _ y,zw s E1tesS revenue over (under)r_fpeadxtaPes S A. i aI,S.N "MR S —Ml) S mm f ih,nn s 'ma 3 krz,em 1595e i aos.h9 S ,n ti6.nf 6f me f 3]Aea f as,eai 380006 Osher Manrlog 5vorces (ban)'. 3ffi014 SW—fiand sg}m (1 A-, 381070 Pr¢ceedr .11.. 3W.0 Opesamg Nensfers to -Ma 150,aw fS0,af0 521000 Opeyadug SSvna—(¢Ut) Efcrss re5r5su®antl other sourae5 over (32,f'M) a5.taf) (4i7a) (nndef) e:peudlEureS and ¢tW a— f iM. f tyw S 4!M S 13sf.5fn 5 —in S f 1?+,la? Sif, s I�%,Til S %y:. S 5fen S aAN Fund Dalaa<e Ja€1` 1, 2W3 Pon, Pefsod Adl s "I f %Ail S %s}Ix f Q9,SOf i 1361,Sa1 S ySM,cax s 2f0y3f s xm.nn liBySf S i,iv s ' Fund Baiavice Jnne 30,20g4 f f leyrs f ei}Tl 3 5 f IAaS,iV S ty%,isz 6 w3yet 9%.y5 S ;650 S 115AFtl v5a� S faFFi f 9,i€9 S E9AYA 87 Oty of KoWex. Mlmtere NwmejorGovernmreMel FLalds Schedde of Revers , Expencidaes 4M Cnanges in F" Ba"nnae - Kugel and ftt.1 For the Year Ended dare 30, 2004 xxa .®v..amw.5„ 2]7a x]7x wn5..ry p5e RevarvvFa: o,fam.vel.e vr.fe�. wme5 d.ldox ]mv v w.n,d .i 4 v.1�.. 4m.i od(mat v _- nwv,3 o.4m.vna» a�.5as 0011D laiee TOW s Slly> f u'1,ri3 f u>,193 s (s],sF{) t 31f,RRx 9 NI.f3R f 1R$IR S 26]JRS f M.S M. R.IOf S ]Rn,36] t SYt.'n'n S 3 6J000 7pW aaeessmenia 32NW TnW &enleWpefadl5 3300W TOW mfergeverpmePW ] ]7. 3 fi.4f5 S 211I7S S 3E 5 ®M2 5 nJ>a f Cryl 5 ]f,Im 5 SR,9M I (SW) 34000t) T.Wa bargefioxaerercef n911 1 SaAa] 3 nsu 360000 Total mbcepaoeovl TOTALREVENUES S i7AN 5 2nma3 57,4N s Sa3A5z f xa5,7re s xBR,'1W 1 1 x]r.Sw s mA]R I xRav 1 xusui I 2s2,2» 1 RAm 3 n4an 5 Rae32a 1 4,x4> EXPENDITURXS: 410000 TOM gePeral gpverpmeul .4. bAlf 7f3 "J]a St,Sn }9e SI,p3 4d.Y1fl 42WO Tote)pabkudety 3fa,]O ]f2,11f ]Aid MM, S'R,51R SAB! fsxA. 1sRi45 f4yB 430000 Total pn62C..,k t S.F11 s fa,ef] f,lae ] 1aAM 5 s,ea] p5f) f n,ar 1 2]A]3 "l,xp 460000 TaW culture A .—de. MA]R oa% I 04bs) vi53 m,Sae p,nxl) nAv ]3Ass 0>s) SI,6]e Sr,xaS rn 4700W Total community development 490000 T'eW debt—WM 510000 TnW mbceaaneou2 W— Sf2.560 S SVCA] S >Am SIf 95 at 900 Cappnl Outky Racess revenuePm (under)eipen dra s„, .1 5 1RMh 3 x.<p f ,ri1 f ,]!1 f 7 S p,M11 5 119A9 5 K,UR S 0— S '1d35 S SAIS f ,..mm ]A'%1 S d].OSd) S xx.Rxe Ja0000 Olber MaPring wavers (uan): 3ffi014 Sak PT Md 351070 Prpceed-O.. 3513000 OpereUngiraW-1. 521000 Op::Mgrr.I—(-at) Alee]s revepaea ap0 PNer Pources over (nnder)eipead11... e.3 ofhel'use- I ma f A,®51 f p p) s (N 5,"a S ax5 f O"D i 13,4f4 Fund Bit: —MY 1, 2003 s - s 2a5,nB s W^ 2nAI] s IIaASR S IN«R4 s 009) 1 P2 ) s RS>�s5 s 2lt,5& Prior Pc55ad Ad] Fund Balance June 30,2004 s 01. I1 T..) SRxAe'1 I So&YSR f 7!5 f (xR,>� 5 px.m2 5 nP,asf i zepil 5 1 f R,'Y4 f mass 32fA>1 S na,f55 S SE.N4 as City of KallspM, lvotden9 NouniW Cmsxn9aer tat funds Schedule of Revenues, ExperiOMMS and Changes In Fund Balances - Budget andActual For the Year Ended June 30, 2004 zsw zasa zwt s+e. says ammy c.a. 5,4n�maieem�ma wm�ve[ad. mma. Gu Tan 9aonM��®� 9.ya- 9.ya- pays- a.afK- a.age- 6.ye- RE NUES: OdflnaVftW Voaf®ae Amd Oddnarfl.d YWwa Aural gddnal�flad Ym.� AWmI OApnd 9Yd onWmrmd 310000 TOW toes 30UIMl TaW ufesvOeOls feed¢ Itsan s y5,a9E) aazo ass't t pss) s5etm su vv s O. 0 MOM T,talgcee5e51permp9 m2asa Sa3ro s 04,IhO 330000 Total lvfergwerpmxaW i zes3ss s EBssie s E65Ru f (>•1 340000 TOW abargd for setidees �.K'r s pee f )3z1 360000 7'qW mbeega.eom 37WN Total ipresimevta - 3,�2 S,sm I x,aw 5 E9ss f f9za TOTAL REVENUES f Hfa. f -v- f 0.a! l f luL- f 3653r1 s I.A.) s N f 0.uE s On, I Eba,u.i f RIM,Sf9 s 916Am s EXPENDITURES: 4100M TOWEnaesaSarnmafsanaf 420000 TOW Put&eare5y su.nf aftyet ax. 4300tm TOW p.bk—o 5 53931E f f5g9'IY 5936� f f r99,6Sa s lHBR2 i Dm,SEE f f'lB,eea T 9aBM, s 7e 1. 9,�3 4600M TOW CWiure d recr dov 490000 TOW cgmmmdty dO""Peaent 490000 TOW debt—u upsa 71 f tux, 330000 TOW miseegnaenaa sou cnpiW aaa.y 1 t Asa, sea�5 .m f _ TOTALS RNDITURES I f au9 ve,nl I 5x.irn f ]f.vss f sJSa f ;,am f I fffi}m 5 a5e— 5 am9ss 5 ]pasts I 5 eee,Su f fa ua EIEess FeVe— over(uvder) npoudinuee s (u'-) s rvfbaq s (],9'19) t 1SSW F Say» i la,e/a 5 ass s ..lam f 1}3f s e,l'ro t f:"bAM�_.f e0,esa) (!6xm f 31,M 3E00% OWelfl... ng e.urcei(efea): 362o14 l afl.vd 3E1010 P—edf of ban szFm aE,am a 303000 Opef.fNg ""SI rs lv e,eu a,a1i Flee) 321 ON CIM.dvg trays3en feet) 1—'.—.0 pad gtha w... wxr (Ovder) espevdlFOru and other asq pf.S151 f Oa,aea) 5 V", nt5a s le f'H i Ox, I—X s I m f a l flJ>d F40d {avhlvice J.Fq 1, 2€103 I 1U.aM s sSi.BN I fa}59 f Sf fss i 'iJll t 7— 5 aI6Mf f o..." I16AEi 5 NFFM f iff,8t6 Pfbr PerlOd Ad) puvd..laoseJ-30, 2004 f I18J55 f SSs,Mb f flfld f r9ae8 f Ram s 1.X' S P,N! f a I 1.3}i S o f aS.SP s g1u f re 3. 5 9'15,1Ti ; J9�34'f i atA20 69 OM of Kaft9O. Madan Nonmajur C»venmfental Furxls Schedule of Revenues, 6dxeud Tes and Changes in Full Balermea - Budget a.d AcWsl Fa the Year Ended June 30, 2004 REVENUES: u a,rexe.utne :aes s.ye- 3uc€c�e Arid- Daps.! umge- oa ay.,w�n s+aea-a oaareaip3e.e woo e�5sba/U»d v..pa ay« o� AdW d 310000 Totd Ssan 3WOOO Tetefar8es3me4f3 EM.4]2 fm,saq f flsl 320000 TOtalk--lpevsnxs 330000 Tataf fofevgmerameami s Yq s 4N,W! t -"m ! -a. s V.x19) s N�mU 5 M}ga s - 340000 Tomicharges far servken S, u f xee s ue 360000 Tole misce�neoas 43,ux S,sgr sxt 376000 Tofnlovest,nk TOTALREVENUES f ag f EWMl S s,3ss S 4m,as5 s man! _ ax,»z s sw i Spm 5 u s ]npsg agU 5 4e}m i $EPRNPTTURB.B: a10000 T.. geoevaf goverameul 42090D Tot¢[ puegc safely sg x}u 4300W Total pubde works 460000 Tnlat cultured recreetlon LL;ud 3F5U 4700M TOW commonly developmeu t n,3•a 4pes afu}4s eea,n w,gn 490000 That dtbl seMre 1., x]px , 310000 Tofri mNce�aeouf 000 Capifa[Ouslay axx}w sn s xgA'>e s elan f3,an v,aa t nx TOTAL E%PRNHITURRS s ssa,'rro s lxx.+m 5 s4gg s m}+d s sn i mg}n s elan s ax,ua s n,nx s v,oss s sssag s amn'r s ss,mr s H3� s fsaof s 5aw EScefa €evenne ove[(uoder)eipendimie5 s pgA3m s pSveO s ip3t aiAN s bEAff s s (yfiF) s pxagx) n Sab3] s s.V,Su s MI..) s s (Sa}x4) 3 p4.xW) s S,SN 380000 Ofner iwaurmg sources;uses): 3MO14 Sa ah,ed 381070 Prace¢ds nlbuu 303000 Ope€udug tr .1—la sg,ab u,xaf (a,sm) 521000 Opomf ng Uaasfen (odU 1.01 ) 03 ) 9!1 E... revenues and otber - --(Udder) efpenditureg and ether.... S 14$W s 54391 s 6A.4&I s ®N]) s (4e54 f uafx f 10,4g'/ ] 3 A itl6, f f PoodH b—Juy 1, 2003 s Se}ss s xm s ®,a3 s ®,m tl s ax,4n s 4E,a58 s 7xx,sN s 7xx,fn s 4'd4 ! f,'»s Prior Ped d Ad] Pbbd HaEance done 30,2004 s xaam s xE,ssz s 4psi s spv s O'Sfs s 40%4 s Sg}n s 1.07 s,mAn t p.794) 0D G1y of Ka"I, M"ra Naanajor CnrvMran nal Funds Schedule of R—rues, Expendihaes and Changes in Fund Balames- Buffet and A tua€ Far tm year Ended June 30, =4 e.aax .eam m.aasa��c,.d xau oana,�cro. _ mr. caeQ.lnw a.0 e.a4a- n.aae. �a4a-� am4a- e.qw- a.4fe- REtrENYsffi5: oado.tfmd Od¢o ,... d Aa.d oaw.tmd+„ v.s= nmr ommf ... rrr ._ S10aQ0 Total taxes 361001 Tvlal aeaessm b 12aaaa Taw gvensevpefadss 330 Mi Tafal InWiavervmeuM f aa>z f ai.eee s Sax i aX, S ,tan i ry,xuk f xxAw s aa4n t n—) s ]e,sea f w,aw s (stdrx) f xi,aa'1 t 1a,sfa f n,e4'� i - 340000 Tataf chargesTw aervlcas 16000 Tnlafmlv."n.va9 t 6S 17000a Totalhsveat—b ao S (w) TOTAL REVEN€IRR 3 +SYd1 s af4w i W1 s g9tl f Nfa1 f (fasl) S tEa00 f stall f nl2 a S 1d P3f S Qa.0.W f @fatal f Ef46''t i .,sa f _ 1w i RXPENDSTURE@: 410060 Talaf general gvvera®evl 420000 Ta.1 pu0pc aasety wens +vaw N afaw n,m +4w seals ataas is,'m 15,u5 UAw t1,g+s 4100. Total paw works 460000 Total cuRure A. fecrea€bu af,4f] s4aw s xlas) s - 470000 Tvbl cvmmualfy d.v Jmnaw 4"m Talaldeht—kf 51000a Taw nWce0aneons M Capllaf Ovffvy s�,ss4 is ws t tT,wa TOT AL YXi'ENDiTURt"S ♦ey t oaw t ay aaye s_ sa s a4w 5 uaa s 5ta¢ i sa,'m s rs t wa» s st,iaa ii,bb'I t urea s 154b1 S Excess rerenae ovef(ander) eipendifvrea f (yaN 3 aawf f f MI—) I Rt6]sl i 111. f (fs' ] (za,epe) 9 MuI IS i f Saaaao OlheT llnvndpg svurcm fuses): ]92014 Sale of WM jell a Pt'ocueds aT ban 3113o a Opmadag lranat'mb sw saw p,u♦> xr era ax,eoo o s4Asu maw peen Siia0a Opefntbg lravafm (osst) R.— fe¢enaea aad oMel eoarees ewer (ander)espevdiw-aad ether aces Fund Balance July 1, 2601 i s - L sMf PAvr Period Ad] Fnad Dala0Ce 4une1a, 20a4 4. f S f S f S City of K.9.*, IA..t.- NG jor Ck� Folds Schedule of Revenues. E%pendrues and Changes in Fund Balar—s- Budget and ACWal For "Your Ended June 30, 2004 ?faa Av��+r+tm cvm lfSf 19% 3f3HA 3002G.G.HUNRWOL 3913 Yete wSYf]YIaH T1T �M- HuiM- eedza- HM{a- IAndsR- REVEf4UM rrnemr'SSw oaemsoxfed GaWwBiW n6W.nfm0 V�i_fa onN�+t V 310000 T.tw taxes 5 xa]atE s m3u f 1 x.�dw 3 xsewS S zm,sos i Hass 363000 TOWaseexamaab 32.00 Teal ace¢ae P.,u t4 33ooes Total Wergmeru�enW s aasn s , p S 3 s ux,'ru s Easdss f (u,xss) 3 ,us s sesdw f II,tN s 3RHM t 2efdsH 3 lffdfS s (eEd9a) 340M ToWcWp,forlerrvlces s3}n s xa,us s s,En t sya x 360000 Total mhce8aneous x,wx tadw i p4H/ sef.]es m S xr.ise s 370M TnW bvestmenfs 5 x.sm 1 +ea t Yd1: 41— x,Su f TOTALREVENUA.S S w,xa+ S 80,176 S S lxbd% S -Ma S ref i S r1Efa 3 fe! f Il S Mf . S H.m f 14. f_ -4. S 4M.xQ S Ra f N.'M F XND1T "Si 4g0000 T¢tnl g—nd goo ml 420600 TOW pebac safety -A. sEdsa 430000 Total pabc works 460000 Total cu ture & recread- 470000 Total.minty devdoymen( ssrn se,xr rea'ie 490M T¢W debt service 2ef,ns fasSEs ® tdfxdA bffa+e s Swell s sa}m 310000 T¢W snh.dbneou] 900 Captti Qaday Ifd'l1 S mxn d,wE Ndxl S "I", uuma tfad4r 3 gx. TOTALEXPENDMRE6 S W- S HB,116 3 n) S .1a 1 S -J. S lw 3 19Edxf 3 1fafe6 S ".0 S Ea 4, S -J. f f id9f i i]933e S ]dNJM s tapxs Ezcne revenue ¢ver(0oder)eYPendl.— S S S f S del S BaM 3 ] 7]2 S S f 3x.tEE i 7dfl f fdsf 3 Nl3,N3) S 3f9918 i O]449aE s lJul 360000 ources 382014 flak ¢f laud Saax,Sf( S,w1,lff MI-) 3BI070 Prucecds of baa 383000 Qpsradag fsnnsfenb v,- u,»f c 32,1W aadse e,m 52109D Opersung lrnvsiers (oat) 3 (aaAee) f fvwaeq 5 (sfaaw) e Ezcesl revenues :ad olber sources over (ooder)a penddurel and o(her uses t t S S naEHl f O,Lff) S 8,016 f Y6hV f f 3f,1]3 S 11.32E S ],WI 9 fd13 i nf.Am S 0" S (V1dN1 S (.0'$) Fund Balance July 1, 2003 S - 4 - S W- s W- f - $ s fEr,� i GxeA�) f sxaaif s ew,ou s ss+dx+ Pzbr Perbd Adl Fund In—.J.-30, 2004 f f,tFf f efa S a06 S SeAtf 1 x xf,A.14 f (xyTrb) f REd9a1 f fdss S ]63di5 f f'I],91E 9 4SR,96A 9 (B,T!!E 92 City Of Kalispell, Morftna N(NJor Co ftmlental Fgds Sche of Revenues, F yendlfi s —1 Charges in Fug Satames- kA dynt and ALWal Far tl)e Year Ended J— 30, 2004 Mae a. �naa.r.c e toes vsc srorwAwc sm�tl sroeuew. a CMxssx �»- s1D&WALI(a toss REVBN(7%2i: orrrMd'tLtl Volnve Adotl OMaxA'Flnr.1 VMwee Adad OAra+•Vxa.d Odped�abtl ndNatlrirr. 31 OM Total taxes 363 Total 05SMINeOU ve s xxs st t a s,ua s spas s em tA. E rrar s is f.asa s 1, t (xw) 320000 Tow gceuSWpermib 330000 To. itttergov to-tal J40©00 total charger t¢r serhuea M0000 TOWlavestuteata,e s TOTAL REVERSFBS rat F i f f ism a aam a t 3dre f tdat 3 fs s a- f t455 S Itis) %XPE IVITUREO: 410000 Total geueralgoverOMMI 420M Tow pub0c aarely 4WM Total peb0c—rM 460000 'raw mdtare&recraabas 4'l0M Total eommuuby devebpia-f 4a0000 'rota) debt aervl a rasa asm tm t.'!m r.9ae 9➢ t,151 t.Ma €aa 310000 'rota) ab"Itaueoaa "0 Capita Oullm TOTAL EXPENDITURES s i s t s t tom t ssm s Am s srm s rear s s 1? s t,Mr t sm %xcens revenue over (aader)etpeutl3lares s 99a 3 f 9t1 s a s t u s xa t f s it. 3 s tt9 s funs s 380000 Olher77papt�g aanrrH fFtfes); 382014 Sale or I.etl 3E1M0 Proceeds o(Wpa .000 Oprra0ag Sraosreraln 321000 01—teg Sraoafera(uut) €sari ruveouea aad aWar sources aver (under) expenditures Yad other ua. 3 afa 5 S 9M f ai t f 6Y 5 5 Ha f 3 5 S f Fund Bala a ae July 1, 2009 S n.) 0n f (M7) Prior Ptlfml Adl Food B.I.—June 30,200t f nau a YY9ae t dLLn s Om) f f s t Reel 3 grn a wn f goal 93 City of Kalispell, Mordena Normmjor Goventtnerdal Funds Schedule at Revenues, EM anda res and Changes In Fund Bounuess - Budget and Aciva€ For Me Year Ended June 30, 2004 ams sass 9mEWALi( gum auWALK4COap 9flJmvALKA COnA ]urf amHWAiJG 4C088 90fCn ire.A nuaitl eC'O@n Bud/n � Bantu n^aid REVENUES: Amd sM odemvuersEy.lxm Amd odWw+Ma atima'rrd alp,.efsw 3100O Mid tasef 30000 TolW arresnmenlu Pa S 3M f c-) 10 s ass i latr aaa i VI s (l9n ml s Sea s qne) 1.891 f 1.62f s ()m) 320000 T.WilicenaeoperuhN 33606 TotW tntergovera -bd 340M Total charges for fervlcea 360000 Tn1W Mbeegnneons 3700e0 Teminlvesi — TOTALREB NUIM pml (5 i qs f Am) S 1 P.) r,aM i Y,bTi i Fm1 EXPENDTMPZS: 4lo0W TBIW generel government 420M T01W PBmk safety 4300D0 T- W pubtic Welk. 460000 Total cuaare A —,-fWn 470000 TolW community dedopment 4p0000 Told debt rer a ne ate fm a1a au SN use ssz xm zed fa w zyz x,4zx zer 31oDW Total mbueftueona 900 Capiml OuWy E[Ceu rcvenae over (untler)eIpCuwwrea S i f i S i f E i s Sem i E Mow Olb-llnnodng sources Emea): 3E2014 eau W land 3no7o Proceeds of IBnn 30M Operatlu; traosfm In 321000 OperaW;trensfm (o¢9 Eicesa reveunes antl borer sources over (under) expeadltnres and ewer uses s s - s - - s - - s - s s s fas s - d4xaf Fund Hnbnce JWy 1, 2e03- Prbr P-W Ad) Food B,�— Juhe A 2004 s - s s s - i - S 94 City of Kakspeu, Montana Nomajor Govenmmtal Funds. SchedWe of Revenues, Evendfums and Ctranges In Fund Balances - Budget and Petal For the Year Ended June 30, 2004 u+t swf Ym88TAf20N CONStAVi'riON l95pw&4W ------------ padxa Mudpn- Budpa. eaasat- REVENUEs: varoo. o".a- w 310000 Totd lases 30000 Total as —on'.. tAas s u.5ae s (11u) Si,mx f 59,z45 s op,>nx) J20000 Told acenteV"—dG 7J0006 Told blergOvmumenlai 340000 Total Charger TOT ao"kc 370000 Total lavestmeats Mat IA40 S SAsx s S TOTALREVENUXS t 'rps S u,fra s (n9u) t IAw S SAm a on I f I ENDITURES; 4100011 Toia/ga..ralgevern-ait 420000 TRW PuW mfety On00D Totes Pam w.t 4so00a 'toW cultured recredbu 470M Tot tm,,uulty devpbpmeut 490000 Told 1W—ka rrm tMoa s,€as a— S4An4 510000 Told naneeBaoeom 95f0 Cap"Outw Ann tw,ma s smAm m.�fp SmAm f n,s+l TO7'N. EXPENDITURES x )Am s B,Sm s S,f4r s nfAM s N,Ma i 44,iA5 f 3,N> s .— t ]wAsr s n.— I, s®C4 s I.m 5 3hN EYCesx net<uoe over(undel)ezp...jnj es t m s a I¢uaeafI s I. -Me S JSOg10 Other noon logwurces (nus): Mal4 sykofland 3s1070 P—ada of hw0 393000 Operating-ad..b Kam a ne,ma maaaa (at t43) sz1W0 Or'.EmgfMnsmtt (rutj Etcesa reveauea aad .tear wuras over (under) eapeadaarat mn, OlOsr mes f� f - t f rm mrA f - R4.aa) n g mi,rm) 9 9 i (n.'m/1 x s lk"n Fond Babace,oty 1, 20DJ s SAp6 f s,fs4 f 19.tn6 S LS.Eif f Ins tp E twArn s reSSN t - S - Pfbr Permd Adj Punt DaEaoce Juae J0, 2004 t sAva s sAm f aAw f s Rears) tnr9ta t Lml 95 City of K.LT 4 MONeaa Internal Service Fun& Combiniaq Statement ofNet Asset June 30, 2004 Aug� CarreatA—bi 10100 Crib-uareslrkkd 10120 Cash- Reptacemeot Total Caab 11900 Matblaery A egwpmt,t 18700 L.A.-.0 Ud Depredatlon Net Property 8 Egmpm¢gt TOTALASSM LIABILTTIFS AND FUNDLgM Curreul L4 bll e,: 20200 Accounts Payabk 2mo Eat tlebYH3 for dams Sab1o(al.—M Hebodd TOTAL LIABILITES FUND EQUITY: 27200 Uureserced Retained Ea,W p Dea12.W for Qepmce®ent Uadesl2aakd WeW E4ramgs TOTAL RETAINED EARNINGS TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY See A—palryulp Nulls to Firm0dal u7slemerds 6030 6050 DATA _ &Mpw"K HEALTH FUND _iTAL S 59,269 3 112,244 S 111,513 12 w 12.697 S 71,356 5 112,244 S 1",600 5 320631 S 0 S 320631 3 (IM,274) S 0 S (2S3,274) S 67,357 S 0 3 67,357 S 138713 5 112,344 5 250957 S 4,479 S 143 S 4,622 S 141164 141164 S 4,479 S 141,307 S 1417" S 4,479 S 341.307 S 145,786 S 0 134234 (29,00) 103,171 S 134234 S (291063) S 105171 3 134234 S (29,00) $ ]OS 171 S 13%713 S 112244 $ 2K"7 96 City of Kalispell, Montana Infernal Service B.& Combming Statement of Rove—, Expenses, and Changes in Emrd Net Assets J— 30, 2004 OPERATING RH VENUES 3J32J0 lotergwern mexfat SS1000 I0ter0W urvlcee 360000 M3ac TOTAL OPERATING RE VENt]HS OPERATING E1lpHNSRS l00 PBrroh.I 9—k. 200 SOPPRe 300 Parehxsed Heel x 500 Fried chgaJAtlmW Nx0af. SJ0 Depretlxa0n TOTAL OPERATING EXPENSES Operxung income NON -OPERATING REV.(EM 373010 Interest Revenue Tx[W non-nperxling reveoue(np) NET INCOME 27200 ReWWetl earnlega-Duty ), 20N Rehaned... N gs Jane 30,2004 See Accomparrying Notes to Financial Statements im DATA EMPLOYER PROCESSING HEALTH TOTAL FUND FUND FUNDS S 30,000 S 3I . $ 43,299 5 1.111 05 S 1,586:304 243 243 3 73 542 S 1,545,005 S 1,618,547 S 5,001 S 3,001 $ Jl,HSB S 6Sk S 12,569 J0,027 4 1,470,1J9 1,30l1,166 2J,O46 2J,036 4J 9J7 4) 931 S IOS,B88 S 1,413,831 S 1,5H4,109 S (35,346) S 69j" S 33,SJE S 927 S S 927 S 447 S 447 S 1374 1.374 S (34,419) S 69,631 S 35,212 $ 16H,6A $ (95,694) S 69,959 S I34,214 S 290G1 $ ]05111 Cagy of Kalispell, Montana Internal Service Funds Cambi.* Statement of Cash Flows For the Ym Fnded- umo 30,2004 bATA Fa Oym TOTAL PAOCESSiNG FSALTH Ftltd) case [tows Ram Op<xw" Acdvidea: CaeL( ynsms meupptizte fS64.3491 d31,ASP,Ui3) V (I.ST3 ]8� NNcashp—dedbyopetmmge[hvsies 1 9.193 i 85972 1 95165 Cash flows from Cspi mad rel d P mudnS xdvitee: bus tv (lenamt Fund 1 Acgl.db n of caPf BBSNa 5 (37630) (37630) N.-hused fore pm endreletad fine-[ ecdvites s (37,630) 1 - 3 (37630) Cash flows ft— inveafvtg a[tivniea: Gne— on InveeVnmOa 1 927 1 448 1 I,375 Net c�h used in inveedng e,dAfi a 1 927 1 448 1 1.375 Nd I-- caah&cash egai,.kM 1 (27,510) 1 86, 20 1 58.910 Caen & cash equivele m July 1, 2003 1 98,866 1 2 ,825 1 i?A.691 Cenh& teen eguivalans m June 30, 2W4 1 71.3m 1 112,245 1 183.6a1 Aecanc21M.00.P.M%11,-1v w [tee Provided by aPesreiag aclivviee: op..%bwane 1 (35,346) 3 o 1. 1 33,838 Adjnemtenie fo meomdEe op—g income to net cmh ProvldW by ope-8 amvuin: llq.— 1 43.937 8 43,937 ch.%. ni aseatx & b bit— Jnt' — in A[[omua payable 602 502 13exseaee in Betrniid Li A4 1 16,]88 16.788 Tad Adjnamwde 1 44.539 1 16.788 1 4027 Net cash provided by operating e[3ivi3fee 1 9,193 1 85,972 3 95,165 em'oioup poffiy nm pvpoea Dime sa�eom of cee6 nawq na tmvod swin nmM [w®� ae ypy Fpad mwxMmes( pui�nenieee eear&�wehameevuy otrom madW mlme rea pmLaee4mLe caL npsvYma. See Accomperrydng Notes M Fhmncie[ Statements 98 Fodeml Gtantor7Pms-Thr6ugh cre�rnmlEraeccam Tidg U.S. Depart -al f Heusi., d Urban Developmemt Passed rhra the SraraDepr. ofCom Co= dty Deve,opmwt Block Grant (2) Community Development Black Gnmt (1) Community Development Black Grant Total U. S. Department of housing and Urban Development U S. Department of Transportation Fussed rhre the SrareDeparrmenr afTr yortaHorc Community Transporntion Enbancemon[ Progam(=p) Community Transportation Enbnrtoamom Pw9mn(CCF.P) Oigbw y Tm1$c Safety.KaiispO Occupant Protacdmi iio-p TmtYc Safety-Kalisp.H Occupant Prat h- Total U. S. Department of Tramporaatloo U. S. Da�srtment of_.luaii„ca IJrrocr Community Oriented Pd i-g services -in Sd-I Awerd Cmmuumty Oncnted Pollang JOrrfar8-In $ 11W1 Award Universal Gmor Cmraausdty Oriented Policing S-wm - Dlock Grant Passed *,-gh FI.A-d County: Drug Control and Systelrls Grant - Formula C t gassed through 3- Bacrd of (W.. Comer EUDL Nah.-I Cow - Total U. S. Depar[menl of Sostico Federal Emereenav Mnnaeement Aepnav Drrect FEMA Grant Department of Eavlronmenml Onallri D-0 DEQ Greet Tetel Federal Amtl nce Flathead County, Montane SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Far Eiacal Yew Ended June 30, 2004 Federal Pm-Ttmough Award Beghudng Bal Fedemt other CFDA# cr-t&o # Arnount 14u1-03 Revemw EW=ditwes Ending B9- 30-fun-04 14.228 M200I-SG300117 $ 428,000 $ 64,531 $ 64,531 $ - 14228 MT-CDBG-OIBR-02 $ 500,000 $ 15,615 $ 15,615 $ - MT-CDBG-02PG-07 $ XON $ 20,000 $ 20,000 $ $ 100146 $ 100,146 $ 20.205 STPE6799(13) $ 167,140 $ - $ 20,205 STPE6799(23) $ 98,260 $ (1,401) 5 177,04 $ 32,170 $ 192,886 $ 15,037 20,600 04-10-08-OW04-13-01-08 8 21,000 $ 9,839 $ 9,839 20,600 02-03-07-06 5 7,000 $ $ 9,996 $ 9,996 $ $ (1401) $ 196,989 # $ 32,170 $ 212,721 $ 15,037 16.710 199951TWX0664 $ 125,000 1796 $ 40,WO 13089 $ 54,885 $ 161710 2MISHWX0464 $ 125,000 $ 4M32 126 5 48,958 S - 16.710 1999UMWX2840 $ 150,000 $ 22,500 $ 16,000 $ 38,086 $ 414 16.710 01-K07-81299 $ 20,500 $ 20,500 8 - 16.579 N/A N/A $ 5,021 $ 42,929 $ 22,000 $ 63,359 $ 6,591 16.727 0LU01.81558 S 3,975 $ 3,975 $ 3,975 $ $ 6,917 $ 178,736 $ 51,215 $ 229,763 S 7,001 85.554 BMW-2002-FG-D6515 $ 101,432 $ 10,552 $ 123,715 $ 16,29g $ 141,340 $ 9,225 68.808 RPG-02-W78 $ 10,000 $ 1Q000 $ WOW 15,968 # 609,586 - 99,683 - 693,970 # 31,267 m. CITY OF KALISPELL FINANCE DIRECTOR SUMMARY OF DAILYBUSINESS AND CASH RECONCILEMENT AT THE CLOSE OF BUSINESS AMENDED COURTYARD RESERVE ACCOUNTS JMu 3D, 2OW BEGNaBNG BAUWCE: $ 21,eW.7B3.2B OaeeiN RxApka 5 2b,fiW,22 GENERAL WmrR S I,4f8,f3 A Ambuim<a Rxegh $ 773.18 AMBULANCE SUBTOTAL: $ N,056W fNhx0.ecelpfr UIRECTDEPOSIT S 78.31 CITY HALL LOT 06wr R"*` DIRECTDEPOSIT $ 731.SS EAGLES LOT G—R-11 DIRECTDEPOSIT $ 374.27 EVS LOT .1 Receph DIRECT OEPOSIT S 24.06 ONEIL LOT Om.1-14le OI RECT DEPOSIT $ 0.65 SK UNE LOT OBwr RecegAa Of RECT DEPOSIT S 968A6 VALLEY BANK LOT SUBTOTAL $ 1,870.88 Other Receipts C RTYARD RESERVE. RENTER$ DEPOSITS S 313.00 ONH ReceipN SUBTOTAL: $ 313A0 Gtlwr R..,. 01 AECT DEPOSIT S 360.86 ROSE BENS ENSJULY SUBTOTAL: $ 380.B8 Gerer Rece�ts NIOkT DEPOSIT S TOM PO0L JUNE 2I, 20W OIBar 0. -Ps NIGHT DEPOSIT $ 1,027.D0 POOL JLNE 27, 20W ONx Raniph NIGHT DEPOSIT $ 3,166.M POOL JIVE 28, 2pW MxfteaebN N1cNT DEP05IT s 1.3Ln.oa wine nwcx_ xme Orix R.CNpN DEPOSIT NIGHT S ""zoo POOL JUKE 28, 2E04 OBur Ranipm N€GHTDEPOSIT S 1,W4.00 POOL JUNE 28, 20W N€GHT DEPOSIT $ 58S.U0 POOL JUNE$0, 20W NIGHT DEPOSIT S 1,331.76 PO0L JUNE N, 20W SUBTOTAL: S S,BW.71 btlur RecalpN JURYNPUB.DEFMFTN'ESS FEES S 136,00 co-T SUB TOTAL: 5 136.00 GLACIER O.N. S Sll.BO GENE MC INTEREST GLACIER BANK 5 1631 COURTYARD RE.— GLAGIERSPNK $ BBB.W GOURTYARD RE—EPOSITS GLACIER BANK S 0.30 REHAB AC INTEREST STIP S tB,fi82.81 STIPINTEREET STIR $ N,2153f UDAG STIP INTEREST SUBTOTAL: $ 1$Wfi.62 TOTAL ALL MOUPTS: S 6"B". LESS DISBURSEMENTS: CA- MT.BOAROOFINJESTMENT$TOGKMONEYOUTOFACG0-T $ 41,S24.82 GATEWAYLOAN SUB TOTAL: $ 41,348A2 Blur RED-6—BONDS S E,133, 12 '$6.'S8,'B7,'BB, 9R'04'KV2 SUBTOTAL: $ 5,133.12 011w- RELEASE PEAFDAMANCE BOND S 21,3B2.OD SE. -"ASTIR —ENTERS SUB TOTAL: 527,383.00 0— PGO—NSFFEEBSC S SoPOOL SUB TOTAL: $ 3A0 Otlw GLACIER BANK S 472.88 SEWICECNGS SUBTOTAL: $ 472.W Wxr COM—FDRESERVEAIC $ E%j.0 MSWR45EMENTS SUBTOTAL: S 6,85100 TOTAL OBBURBENN!NTS: $79,071,90 BALANCE AGGOUNTED FOR: $ 2f,5B0,1tl290 100 %%%%%%%% CITY OF HADSPELL FINANCE DIRECTOR SUMMARY OF DAILY BUSINESS AND CASH RECONCILEMENT AT THE CLOSE OF BUSINESS DEMAND DEPOSITS: Gesitm Trn,s3 iDMu4r Br cnecNrM x5663 Gen3 A1C ; z]S,ne.ee rra2s.62+96u.ee+i96.�]OB +94,066.89rF,9]D.BB+lt4.R0.4]2.88 :TvImIMP6 PPdi2890 SG4 $ 7,898.10 +A,660,71+,M300 a-fts3851 t3ceFliMC ale N, 8") $108,881.96 C6t F ? Ip S 1.255.70 +&3.48 STIP P.— S 17,471,84&.52 +58,502.&1BSAS Mi&os S.', I.Al—&SMms S 2,000.OD000 BIDDERS BONGS ; 95B BB9.60 =2],mm WD-TOTAL DEMAND DEPOSITS, $20,229,10.9B INVESTMENTS: t3teeier Benk IM. SuhaMy/R Waein BeM CouryeMRe C4utin Bulk CowtYmE Rawm AccouMEquSy cm. — Beek ColeyerO Reeem Accoun[+EquRy R.—DeP ST IP PlW—tlDAO M T—It ro C3] STIP STiP PrWM DAIS OTHER INVESTMENTS: Swwr 1888 S &C Sexx 1867 5 &L Seev, t806 S 8 G Sewn 1860 S & C Sewer 2000 S & C Sewa/ml S&G sewer 2002 s&G Sewn 2003 9&G TOTAL s&c TO —INVESTMENTS: PETTY CASH: TOTALACCOLMNEO FOR: 101 585.Di +.90 s 49ae.B0 .ss6100 i 2.708.00 +si300 S 20.373.80 E i,265,223.83 +1,2/3.5428,9]S.BO S 1,Si8A6 4,518A8 4 v,071A2 -t ATt A2 632,66 -2108S 3 WAS -22112 S 1,447.20 -289M $ BO8.80-iS1.10 $ 11,BB928-tYT0A3 $ 39,T68M S 91,812.82 S 1.660.00 S21,SBg102.88 STATISTICAL SECTION CITY OF KALISPELL, MONTANA Miscellaneous Statistics (unaudited) Date of organization 1892 County Flathead Form of Government Council/ Manager Number of employees (non -elected) 151 Seasonal employees 80+ Elected Mayor, 8 Council persons, Municipal Judge 10 Population of the City 14,223 Registered Voters: active 7,005 inactive 2,616 City Services: Nonce protection Fire Department, Ambulance Service and Building Inspection Parks & Recreation Community Development Public Works -Streets, Water, Sewer, Wastwater Treatment, Storm Sewer General Administration -City Manager, Attorney, Finance, City Clerk, Municipal Court Miles of Streets & Alleys Municipal Water/Sewer: Number of consumers Water rate per 1,000 gallons $ 1.66 Sewer rate per 1,000 gallons $ 3.48 Irrigation per 1,000 gallons $ 1,05 Customer service costs $2.85 each per billing period. 102 104 7,015 (increase to $1.83 July 1, 2004) (increase to $3.62 July 1, 2004) (increase to $1.16 July 1, 2004) CITY OF KALISPELL, MONTANA General Revenues by Source Last Ten Fiscal Years (unaudited) Fiscal licenses Intergovern- Charges Fines and Investment year Taxes and fees mental for services Forfeitures Earnings Miscellaneous Total 1995 $ 4,081,118 $ 448,487 $ 2,311,357 $ 793,607 $ 369,767 $ 652,930 $ 12,690 $ 8,669,956 1996 $ 4,034,791 $ 391,017 $ 2,393,810 $ 755,221 $ 348,075 $ 581,219 $ 29,245 $ 8,533,378 1997 $ 5,424,233 $ 333,434 $ 1,987,629 $ 878,404 $ 395,299 $ 594,974 $ 61,031 $ 9,675,004 1998 $ 5,241,477 $ 393,785 $ 2,056,588 $ 790.766 $ 412,694 $ 3,122,635 $ 96,048 $ 12,113,993 1999 $ 5,267,252 $ 362,190 $ 3,315,493 $ 901,911 $ 351,973 $ 407,284 $ 102,494 $ 10,708,597 2000 $ 5,050,429 $ 459,656 $ 3,071,032 $ 863,632 $ 379,517 $ 393,118 $ 109,289 $ 10,326,673 2001 $ 4,429,943 $ 522,917 $ 3,732,442 $ 989,851 $ 391,665 $ 713,357 $ 157,551 $ 10,937,726 2002 $ 4,920,674 $ 340,099 $ 4,294,120 $ 1,106,812 $ 399,861 $ 672,551 $ 134,291 $ 11,868,408 2003 $ 4,936,790 $ 610,299 $ 4,150,234 $ 802,377 $ 453,892 $ 909,145 $ 549,155 $ 12,411,892 2004 $ 5,509,021 $ 426,713 $ 4,135,311 $ 1,003,640 $ 443,646 $ 1,162,252 $ 695,778 $ 13,376,361 Component units were excluded to comply with GASB reporting requirements. 1999 investment earnings included repayment ofthe UDAG loan from Kalispell Center Mall. Sources: FYI 995-2004 data from the City's Comprehensive Annual Financial Report, Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Ail Governmental Fund Types 103 CITY OF KALISPELL, MONTANA General Governmental Expenditures by Function Last Ten Fiscal Years (unaudited) Legislative, Administrative Public Parks Housing & Fiscal and support Safety Public Works Recreation & Community Capital Debt year services Culture Development Outlay Service Total 1995 $ 1,183,299 $ 2,681,369 $ 1,525,155 $ 492,538 $ 1,557,446 $ 1,819,661 $ 365,415 $ 9,624,883 1996 $ 1,079,757 $ 2,783,321 $ 1,403,993 $ 534,465 $ 790,054 $ 1,839,574 $ 397,242 $ 9,827,406 1997 $ 1,125,218 $ 2,893,042 $ 1,725,300 $ 510,819 $ 652,296 $ 1,328,286 $ 482,448 $ 8,717,409 1998 $ 1,194,016 $ 2,940,163 $ 1,723,852 $ 589,984 $ 870,940 $ 3,682,896 $ 372,950 $ 11,374,801 1999 $ 1,208,880 $ 3,116,875 $ 1,501,822 $ 660,359 $ 1,795,463 $ 2,829,146 $ 406,509 $ 11,519,054 2000 $ 1,223,943 $ 3,342,327 $ 1,398,926 $ 723,360 $ 2,019,148 $ 4,370,624 $ 499,804 $ 13,578,132 2001 $ 1,253,352 $ 3,422,810 $ 1,699,238 $ 862,953 $ 1,583,421 $ 773,633 $ 718,962 $ 10,314,369 2002 $ 1,521,457 $ 3,739,192 $ 2,639,936 $ 1,073,442 $ 1,539,580 $ 1,195,946 $ 930,689 $ 12,640,242 2003 $ 1,519,186 $ 4,780,182 $ 1,443,451 $ 988,015 $ 1,123,497 $ 3,394,947 $ 986,612 $ 14,235,890 2004 $ 1,658,495 $ 5,150,657 $ 1,515,246 $ 1,071,506 $ 768,038 $ 4,342,922 $ 2,213,388 $ 16,720,252 Component units were excluded to comply with GASB reporting requirements. Sources! FY 1995-2004 data from the City's Comprehensive Annual Financial Report, Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund'rypes 104 CITY OF KALISPELL, MONTANA Consolidated Tax Rates -Mill Levies Last Ten years (unaudited) SD75 State School Flathead Valley Consolidated City Fiscal City of High School Elementary Equaliztion Community County County TOTAL year Kalispell Levy Levy Levies College levy Health MILLS 1995 107,500 49.870 106.320 138.14 11.700 75.888 4.150 493,568 1996 108.000 50.880 112.500 136.29 10.360 75.898 4.150 498,078 1997 116.160 55.090 116.330 136.19 10.200 82.132 4.150 520.252 1998 116,160 54.600 120.020 133.33 10.040 74.978 3.862 512,990 1999 111,160 61.720 126.33 133.95 10.410 78.793 1.561 523,924 2000 114.250 66.430 133.74 137.62 11.010 80.922 4.402 548.374 2001 122.000 67.500 124.760 138.630 11.920 84.224 4.652 553.686 2002 129.420 78.040 149.840 140.880 12.030 89.973 4.652 604.835 2003 152,600 80.350 152.040 142.890 11.760 94.115 4.930 638.685 2004 149.740 80.000 153.120 148.420 11.570 100.700 5.090 648.640 Source: Montana Tax Foundation 105 CITY OF KALISPELL, MONTANA Assessed Value of Taxable Property Last Ten Fiscal Years (unaudited) Urban Renewal Fiscal districts City taxable value # mills dollars year Market Value % chg CPI Taxable Value Tax Increment without increment 1 mill levied generated 1995 $ 498,149,787 -0.8% 3.30% $ 22,213,837 $ 2,822,247 $ 19,391,590 $ 19,391 107.50 $ 2,084,533 1996 $ 529,775,663 6.0% 3.00% $ 23,738,165 $ 3,514,011 $ 20,224,154 $ 20,224 108.00 $ 2,184,192 1997 $ 551,112,670 3.9% 2.30% $ 24,433,839 $ 3,634,332 $ 20,799,507 $ 20,799 116.16 $ 2,416,012 1998 $ 576,856,663 4.5% 1.40% $ 25,376,049 $ 3,902,752 $ 21,473,297 $ 21,473 116.16 $ 2,494,304 1999 $ 588,649,254 2.0% 1.70% $ 25,500,927 $ 4,330,212 $ 21,170,715 $ 21,170 111,16 $ 2,353,257 2000 $ 574,721,869 -2A% 2.60% $ 24,932,008 $ 3,593,853 $ 21,338,155 $ 21,338 114.25 $ 2,437,867 2001 $ 592,339,335 3.0% 3.00% $ 23,087,996 $ 1,934,202 $ 21,153,794 $ 21,153 122.00 $ 2,580,666 2002 $ 622,610,786 4.9% 2.40% $ 23,411,193 $ 2,059,458 $ 21,351,734 $ 21,361 129.42 $ 2,763,246 2003 $ 678,031,534 8.2% 2,80% $ 24,412,901 $ 754,554 $ 23,658,347 $ 23,654 152.6 $ 3,609,600 2004 $ 743,576,508 8.8% 2.80% $ 25,270,432 $ 817,184 $ 24,453,248 $ 24,453 144.65 $ 3,537,126 Notes: FY2003 includes 12 mills for Health insurance premium increases authorized by the legislature. An additional 12 mills was approved by the voters for the construction of an aquatics facility. The Downtown Urban Renewal District ended in FY2002. The two remaining districts are the Westside and the Airport Districts. 106