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4. Basic Financial StatementsCity of Kalispell, Flathead County, Montana Statement of Net Assets June 30, 2009 Governmental Business -type Downtown Parking Activities Activities Total BID Commission ASSETS Current assets: Cash and investments $ 5,812,045 $ 6,413,715 $ 12,225,760 $ 99,451 49,980 Taxes and assessments receivable, net 1,211,403 121,585 1,332,988 Accounts receivable - net 493,222 423,437 916,659 15,340 Notes and loans receivable 123,833 - 123,833 Contracts receivable 113,796 - 113,796 Due from other governments 372,232 109,162 481,394 Prepaid expenses 114,823 - 114,823 1,100 Inventories 123,208 123,208 Total current assets $ 8,241,354 $ 7,191,107 $ 15,432,461 $ 99,451 $ 66,420 Noncurrent assets - Restricted cash and investments $ 712,126 $ 6,573,724 $ 7,285,850 $ $ Deferred assessments receivable 4,502,365 - 4,502,365 Long term portion of loans receivable 2,097,916 - 2,097,916 Capital assets - land 2,552,209 1,699,194 4,251,403 Capital assets - construction in progress 125,508 21,798,325 21,923,833 Capital assets- depreciable, net 76,197,375 57,314,480 133,511,855 32,958 Toll noncurrent assets $ 86,187,499 $ 87,385,723 $ 173,573222 $ - $ 32,958 Total assets $ 94,428,853 $ 94,576,830 $ 189,005,683 $ 99,451 $ 99,378 LIABILITIES Current liabilities Accounts payable 193,387 594,592 787,979 6,114 522 Retainage 4,910 458,284 463,194 Accrued payroll 346,987 69,804 416,791 1,998 Deferred revenue -accounts recievable - - - 19,952 Current portion of long-term liabilities 95,922 - 95,922 Current portion of long-term capital liabilities 1,000,351 1,087,000 2,087,351 Current portion of compensated absences payable 41,286 4,797 46,083 Other current liabilities 23,432 23,432 Total current liabilities $ 1,706,275 $ 2,214,477 $ 3,920,752 $ 6,114 $ 22,472 Noncurrent liabilities Deferred revenue -noncurrent portion loans receivable 1,036,703 - 1,036,703 Noncurrent portion of long-term liabilities 743,506 - 743,506 Noncurrent portion of long-term capital liabilities 12,772,323 19,541,000 32,313,323 Noncurrent portion of compensated absences 1,045,053 309,384 1,354,437 4,917 Total noncurrent liabilities $ 15,597,585 $ 19,850,384 $ 35,447,969 $ - $ 4,917 Total liabilities $ 17,303,860 $ 22,064,861 $ 39,368,721 $ 6,114 $ 27,389 NET ASSETS Invested in capital assets, net of related debt $ 65,102,418 $ 60,183,999 $ 125,286,417 $ 32,958 Restricted for capital projects (3,822) 4,086,765 4,082,943 Restricted for debt service 947,663 1,887,259 2,834,922 Restricted for special projects 5,151,334 387,349 5,538,683 Restricted for other purposes - 213,000 213,000 Unrestricted 5,927,400 5,753,597 11,680,997 93,337 39,031 Total net assests $ 77,124,993 $ 72,511,969 $ 149,636,962_ $ 93,337 $ 71,989 Total liabilities and net assets $ 94,428,853 $ 94,576,830 $ 189,005,683 $ 99,451 $ 99,378 See accompanying Notes to the Financial Statements 18 mm 8 iE ao U N N N N N N 3 3 m O C r n b OONi N H N N N b LJ N N N Hs ^pm �a''�' rn mN N N N mbn'mw .�i t�miV?v�m�pp v� N mm m mc�v V mnnO m NNyN IVnYR n OV NN NN'm^Na NbNtO V'N C�i��N E N a m�'mm N N NN m met N � �m Q n q N N M h�.m �np0 N �r $� N N N N NN M 1� Mom^ m Nrnmab N Ot m�Nm � h�Mf��{ O C N�nr »a�N�t�fO .-NM oa O N N N N N N N NN N a ei vrimai � b Nti N qp C q �m m �(Ef N N N N N N N ffi �pO e a � e n g g umi 3^�' € k �a`mc7 ciB� z w E z Z LL�tl �ro0 O NNW Omi P C mvv pyI O�N� [S} O'N Yfo � mb LL N �mNr mmmmN b = dim N N.no �� N vNm � mb mItp O mcdm nv w ^NH N V n 8 W bof N�- N N N m N N N N N N E a GcuL' p Q d R d€ao o u'o mo_`o,dnv ' 00 �E ea o E s E fq 19 City of Kalispell, Flathead County, Montana Balance Sheet Governmental Funds June 30, 2009 Other Total Community Dev. Governmental Governmental General Fund Loan Revolving SID 344 Funds Funds ASSETS Current assets: Cash and investments $ 517,951 $ 199,562 $ - $ 4,977,666 $ 5,695,179 Taxes and assessments receivable, net 305.679 - 403,545 502,179 1,211,403 Accounts receivable - net 1,915 - - 491,307 493,222 Notes and loans receivable 16,743 60,747 - 46,343 123,833 Contracts receivable 37,364 - - 76,432 113,796 Due from other funds - 16,000 - 18,707 34,707 Due from other governments 4,721 - - 367,511 372,232 Prepaid expenses 111,516 - - 111,516 Total current assets $ 995,889 $ 276,309 $ 403,545 $ 6,480,145 $ 8,155,888 Noncurrent assets: Restricted cash and investments $ - $ - $ 56,348 $ 655,778 $ 712,126 Advances to other funds - 32,000 - - 32,000 Deferred assessments receivable - - 3,701,587 800,778 4,502,365 Long term portion of loans receivable - 1,573,066 - 524,850 2,097.916 Total noncurrent assets $ $ 1,605,066 $ 3,757,935 $ 1,981,406 $ 7,344,407 Total assets $ 995,889 $ 1,881,375 $ 4,161,480 $ 8,461,551 $ 15,500,295 LIABILITIES Current liabilities: Accounts payable 63,979 - - 124,603 188,582 Retainage - - - 4,910 4,910 Accrued payroll 230,418 - - 114,468 344,886 Due to other funds - - - 34,707 34,707 Deferred revenue -accounts recievable - - - 485,447 485,447 Deferred revenue -deferred assessments receivable 305,679 - 403.545 502,179 1,211,403 Deferred revenue -current portion loans receivable - 60,747 - 46,343 107,090 Other current liabilities 23,432 23,432 Total current liabilities $ 623,508 $ 60,747 $ 403.545 $ 1,312,657 $ 2,400,457 Noncurrent liabilities: Advances payable - - - 32,000 32,000 Deferred revenue -noncurrent portion loans receivable - 1,573,066 - 524:850 2,097:916 Deferred revenue -deferred assessments receivable 3,701,587 800,779 4,502,366 Total noncurrent liabilities $ $ 1,573,066 $ 3,701,587 $ 1,357,629 $ 6,632,282 Total liabilities $ 623,508 $ 1,633,813 $ 4,105,132 $ 2,670,286 $ 9,032,739 FUND BALANCES Reserved for advances - 32,000 - - 32,000 Reserved for debt service - - 56,348 891,315 947,663 Reserved for capital projects - - - (3,822) (3,822) Unreserved reported in general fund 372,381 - - - 372,381 Unreserved reported in special revenue funds - 215,562 - 4,903,772 5,119,334 Total fund balance $ 372,381 $ 247,562 $ 56,348 $ 5,791,265 $ 6,467,556 Total liabilities and fund balance $ 995,889 $ 1,881,375 $ 4.161.480 $ 8,461,551 $ 15,500,295 See accompanying Notes to the Financial Statements Me City of Kalispell, Flathead County, Montana Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets June 30, 2009 Total fund balances - governmental funds $ 6,467,556 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 78,850,195 Assessments and accounts receivable will be collected this year, but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds. - current portion 1,211,403 - noncurrent portion 4,502,366 - ambulance 485,447 An internal service fund is used by management to charge the costs of providing services within the government. The assets and liabilities of the internal service funds are included in governmental activities in the government -wide statement of net assets 130,743 Long-term liabilities are not due and payable in the current period and therefore are not reported as liabilities in the funds. - Bonds and notes payable (15,691,019) Loans receivable that will be collected at some future date that are recognized as revenues on the statement of activities. - current portion 107,089 - non current portion 2,097,916 - portion that will be recognized as revenue on the statement of activities in future years (1,036,703) Total net assets - governmental activities $ 77,124,993 See accompanying Notes to the Financial Statements 21 City of Kalispell, Flathead County, Montana Statement of Revenues, Expenditures, and Changes in Fund Balances Govemmental Funds For the Fiscal Year Ended June 30, 2009 Other Total Community Dev. Governmental Governmental General Fund Loan Revolving SID 3" Funds Funds REVENUES Taxes and assessments $ 4,869,710 $ - $ 150,959 $ 2,346,818 $ 7,367,487 Licenses and permits 197,514 - - 130,526 328.040 Intergovernmental 3,362,651 - - 1,821,483 5,184,134 Charges for services 1,247,141 65,011 - 3,466,634 4,778,786 Fines and forfeitures 489,108 - - - 489,108 Miscellaneous 68,181 - - 133,671 201,852 Investment earnings 85,809 8,101 65,298 159,208 Total revenues $ 10,320,114 $ 73,112 $ 150,959 $ 7,964,430 $ 18,508 615 EXPENDITURES General government $ 2,411,128 $ - $ - $ 26,615 $ 2,437,743 Public safety 7,028,541 - - 1,540,864 8,569.405 Public works 477,147 - - 1,733,091 2.210,238 Culture and recreation 1,042,963 - - 547,397 1,590,360 Housing and community development - 69,680 - 949,076 1,018,756 Debt service -principal 106,146 - 225,000 757,168 1,088,314 Debt service -interest 30,558 - 187,508 454,320 672.386 Capital outlay 24,242 15,000 1,764,795 1,804,037 Total expenditures $ 11,120,725 $ 84680 $ 412,508 $ 7,773,326 $ 19,391239 Excess (deficiency) of revenues over expenditures $ (800,611) $ _(11,568) $ (261,549) $ 191,104 $ (882,624) OTHER FINANCING SOURCES (USES) Proceeds of general long term debt $ - $ - $ - $ 8,980 $ 8,980 Proceeds from the sale of general capital asset disposition 2,230 - - 3,799 6,029 Transfers in 591,615 - - 699,002 1,290,617 Transfers out (27,000) (1,263,617) (1,290 617) Total other financing sources (uses) $ 566,845 $ - $ - $ (551,836) $ 15,009 Net Change in Fund Balance $ (233,766) $ (11,568) $ (261,549) $ (360,732) $ (867,615) Fundbalances- beginning $ 614,283 $ 259,130 $ 317,897 $ 6,254,592 $ 7,445,902 Restatements (8,136) - - (102,595) (110731) Fundbalances - beginning, restated $ 606,147 $ 259,130 $ 317,897 $ 6,151,997 $ 7,335,171 Fund balance - ending $ 372,361 $ 247,562 $ 56,348 $ 5,791,265 $ 6,467 556 See accompanying Notes to the Financial Statements 22 City of Kalispell, Flathead County, Montana Reconciliation of the Statement of Revenues, Expenditures. and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended June 30, 2009 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds $ (867,615) Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets: - Capital assets purchased 1,804,037 - Depreciation expense (5,307,406) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: - Donated capital assets 5,553,482 - Deferred assessments recievable (beginning of year) (6,412,612) - Deferred assessments recievable (end of year) 6,199,216 - Deferred loans recievable (beginning of year) (2,365,612) - Deferred loans recievable (end of year) 2,205,006 The change in compensated absences is shown as an expense in the Statement of Activities 36,011 Repayment of debt principal is an expenditures in the governmental funds, but the repayment reduces long-term debt in the Statement of Net Assets: - Long-term debt principal payments 1,088,314 Long term debt proceeds provide current financial resources to the governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Assets: - Proceeds from the sale of long-term debt (8,980) Internal service tunds are used by management to chare the costs of certain activities, to individual tunds. The net revenue of the internal service funds is reported with the governmental activities of the Government -Wide Statement of Activities net of the amounts allocated to business -type activities and depreciation expense. 7,903 Change in net assets - Statement of Activities $ 1,931,744 See accompanying Notes to the Financial Statements 23 City of Kalispell, Flathead County, Montana Balance Sheet Proprietary Funds June 30, 2009 Governmental Business -Type Activities - Enterprise Funds Activities Non -major Internal Service Water Sewer Enterprise Totals Funds ASSETS Current assets: Cash and investments $ 2,753,570 $ 3,238,392 $ 421,753 $ 6,413,715 $ 116,866 Taxes and assessments receivable, net - 65,071 56,514 121,585 - Accounts receivable - net 185.031 237,626 780 423,437 - Due from other governments - 61,136 48,026 109,162 - Prepaid expenses - - - - 3,307 Inventories 123,208 123,208 Total current assets $ 3,061,809 $ 3,602,225 $ 527,073 $ 7,191,107 $ 120,173 Noncurrent assets: Restricted cash and investments $ 1,191,876 $ 5,381,848 $ - $ 6,573,724 $ - Capital assets - land 103,263 248,063 1,347,868 1,699,194 - Capital assets - construction in progress - 21,706,517 91,808 21,798,325 - Capital assets - depreciable, net 25.632,432 29,396,467 2,285,581 57,314 480 24,898 Total noncurrent assets $ 26,927,571 $ 56,732,895 $ 3,725,257 $ 87,385,723 $ 24,898 Total assets $ 29,989,380 $ 60,335,120 $ 4,252,330 $ 94,576,830 $ 145,071 LIABILITIES Current liabilities: Accounts payable 39,674 550,519 4,399 594,592 4,805 Retainage - 458,284 - 458,284 - Accrued payroll 21,791 36,113 11,900 69,804 2,101 Current portion of long-term capital liabilities 349,000 738,000 - 1,087,000 - Current portion of compensated absences payable 4,797 - - 4,797 - Total current liabilities $ 415,262 $ 1,782,916 $ 16,299 $ 2.214,477 $ 6,906 Noncurrent liabilities: Noncurrent portion of long -tens capital liabilities 3,800,000 15,741,000 - 19,541,000 - Noncurrent portion of compensated absences 85,149 161,705 62,530 309,384 7,422 Total noncurrent liabilities $ 3,885.149 $ 15,902,705 $ 62,530 $ 19,850,384 $ 7,422 Total liabilities $ 4,300,411 $ 17,685,621 $ 78,829 $ 22,064,861 $ 14,328 NET ASSETS Invested in capital assets, net of related debt $ 21.586,695 $ 34,872,047 $ 3,725,257 $ 60,183,999 $ 24,898 Restricted for capital projects 676,428 3,410,337 - 4,086,765 - Restricted for debt service 515,449 1,371,810 - 1,887,259 - Restricted for special projects - 387,349 - 387,349 - Restricted for other purposes - 213,000 - 213,000 - Unrestricted 2,910,397 2,394,956 448,244 5,753,597 105,845 Total net assets $ 25,688,969 $ 42,649,499 $ 4,173,501 $ 72,511.969 $ 130,743 Total liabilities and net assets $ 29,989.380 $ 60,335,120 $ 4,252,330 $ 94,576,830 $ 145,071 See accompanying Notes to the Financial Statements 24 City of Kalispell, Flathead County, Montana Statement of Revenues, Expenses, and Changes in Net Assets Proprietary Funds For the Fiscal Year Ended June 30, 2009 Governmental Business -Type Activities - Enterprise Funds Activities Non -major Internal Service Water Sewer Enterprise Totals Funds OPERATING REVENUES Charges for services $ 2,433,252 $ 3,389,757 $ 830,477 $ 6,653,486 $ 152,825 Miscellaneous revenues 129,317 1,287 132 130,736 665 Special assessments 772,713 772,713 Total revenues $ 2,562 569 $ 4,163,757 $ 830,609 $ 7,556,935 $ 153,490 OPERATING EXPENSES Personal services $ 1,013,558 $ 1,625,940 $ 523,298 $ 3,162.696 $ 89,382 Supplies 78,070 120,825 42,042 240,937 40,061 Purchased services 367,695 790,828 60,290 1,218,813 109,741 Building materials 59,515 22,289 - 81,804 - Fixed charges 174,154 407,626 99,906 681,686 29,537 Losstbad debt expense 8,212 8,338 - 16,550 - Depreciation 721,830 1,793,190 251,438 2,766,458 7,561 Total expenditures $ 2.423,034 $ 4,768.936 $ 976,974 $ 8,168,944 $ 276,282 Excess (deficiency) of revenues over expenditures $ 139,535 $ (605.179) $ (146,365) $ (612,009) $ (122,792) NON -OPERATING REVENUES (EXPENSES) Intergovernmental revenue - - - - 128,083 Interest revenue 131,689 320,353 14,998 467,038 2,612 System development charges 276,291 584,312 - 860,603 - Debt service interest expense (174,385) (585,126) - (759,511) - Capital contributions 235.513 161,175 396,688 Total other financing sources (uses) $ 469,108 $ 480,714 $ 14,996 $ 964,818 $ 130,695 Change in net assets $ 608.643 $ (124,465) $ (131,369) $ 352,809 $ 7,903 Net Assets - Beginning of the year $ 25,088,106 $ 42,773,964 $ 4,304,870 $ 72,166,940 $ 122,840 Restatements (7,780) (7,780) Net Assets- Beginning of the year - Restated $ 25,080,326 $ 42,773,964 $ 4,304,870 $ 72,159,160 $ 122,840 Net Assets - End of the year $ 25,688,969 $ 42,649.499 $ 4,173.501 $ 72,511.969 $ 130,743 See accompanying Notes to the Financial Statements 25 City of Kalispell, Flathead County, Montana Combined Statement of Cash Flows All Proprietary Fund Types For the Fiscal Year Ended June 30, 2009 Governmental Business - Type Activities Activities Non -major Internal Service Water Sewer Enterprise Totals Fund Cash flows from operating activities: Cash received from customers $ $2,414,685 S $3,376,866 $ $840,444 S $6,631,995 $ 153,490 Cash received from assessments $783,384 $0 $783,384 Cash received from miscellaneous sources 129,317 $5,938 $132 $135,387 Cash payments for claims (856,044) ($1,811,293) ($231,565) ($2,898,902) ($85,138) Cash payments to employees ($1,001,078) ($1,591,674) ($520,029) ($3,112,781) (s 198,976) Net cash provided (used) by operating activities $ 686,880 $ 763,221 $ 88,982 $ 1,539,083 $ (130,624) Cash flows from capital and related financing activities: Principal paid on bonds, loans and advances ($341,000) ($726,000) - ($1,067,000) _ Interest paid on bonds, loans and advances (174,385) ($585,126) - ($759,511) - Acquisitionandconstmctionofcapitalassets ($1,235,273) ($9,780,061) (240,394) ($11,255,728) _ Proceeds from bonds, loans and advances $0 $6,205,441 $6,205,441 Net cash provided (used) by capital and related financing activities $ ($1,750,658) $ (4,885,746) $ (240,394) $ ($6,876,798) $ Cash flows from non -capital financing activities: Intergovernmental revenue - - - - 128,083 Proceeds oflicenses and permits for non operating 276,291 $584,312 $860,603 Net cash provided (used) from non -capital financing activities $ 276,291 $ 584,312 $ - $ 860,603 $ 128,083 Cash flows from investing activities: Interest on investments 131,689 $320,353 $14,997 $467,039 2,612 Net cash provided (used) by investing activities $ 131.689 $ 320,353 $ 14,997 $ 467,039 S 2,612 Net increase (decrease) in cash and cash equivalents $ (655,798) $ (3,217,860)$ (136,415) $ (4,010,073) $ 71 Cash and cash equivalents at beginning $4,601,244 $11,839,100 $558,168 $16,997,512 116,794 Restatements Cash and cash equivalents at end $ 3,945,446 $ $62Q240 $ 421,753 $ 12,987,439 $ l 1b,865 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income( loss) $ 139,535 $ ($605,179) $ ($146,365) $ (612,009) $ (122,792) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation 721,830 $1,793,190 251,438 2,766,458 7,561 Bad Debt 8,212 $8,338 - 16,550 Changes in assets and liabilities: _ Accounts receivable - net ($18,567) ($8,240) 9,967 ($16,840) _ Taxes and assessments receivable, net - $10,671 - 10,671 - Inventories $25,116 - 25,116 _ Accounts payable ($201,726) ($469,725) ($28,022) ($699,473) (19,637) Accrued payroll $12,480 $34,166 _ $1,964 48,610 $4,244 Net cash provided (used) by operating activities $ 686,880 $ 763,221 $ 8$982 $ 1,539,083 $ The City received non cash contributions of land and infrastructure as follows: $235,513 161,175 $396,688 See accompanying notes to the financial statements 26 City of Kalispell, Flathead County, Montana Statement of Fiduciary Net Assets Fiduciary Funds June 30,2009 Agency Funds ASSETS Cash and short-term investments $ 201,731 Total assets $ 201,731 LIABILITIES Due to others 201,731 Total liabilities $ 201,731 See accompanying Notes to the Financial Statements 27