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Financial Report Fiscal 2003CITY OF KALISPELL, MONTANA FINANCIAL REPORT FISCAL YEAR 2003 July 12002 - June 30 2003 CITY OF KALISPELL ANNUAL FINANCIAL REPORT TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal................................................................................................................................................... 3-5 Elected Officials............................................................................................................................................................ E FINANCIAL SECTION Management's Discussion and Analysis........ ............................. ... ................ I ................. ... ...................................... 7-19 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets.............................................................................................................................. 20 Statement of Activities................................................................................................................................ 2.1 Fund Financial Statements: Balance Sheet — Governmental Funds ...................................................................................................... Reconciliation of the Balance Sheet — Governmental Funds to the Statement of Net Assets............ 22 23 Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds..... 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities........................................................................... 25 Statement of Net Assets — Proprietary Funds......................................................................................... 26 Statement of Revenues, Expenses, and Changes in Fund Net Assets —Proprietary Funds .............. 27 Statement of Cash Flows — Proprietary Funds........................................................................................ 28 Statement of Fiduciary Net Assets — Fiduciary Funds........................................................................... 29 Notes to the Financial Statements.................................................................................................................. 30-67 Required Supplementary Information: Budgetary Comparison Schedule — General and Major Special Revenue Funds .................................... 68-69 Budgetary Comparison Schedule — Budget to GAAP Reconciliation — General and Major Special Revenue Funds............................................................................................................................... 70 Other Supplementary Information: Combining and Individual Fund Statements and Schedules: Combining Balance Sheet -- Nonmajor Special Revenue Funds........................................................... 71-73 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -- Budget and Actual — Nonmajor Special Revenue Funds................................................................................. 74-82 Combining Balance Sheet — Nonmajor Debt Service Funds................................................................. 83-84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -- Budget and Actual — Nonmajor Debt Service Funds....................................................................................... 85-90 Balance Sheet — Nonmajor Capital Project Fund................................................................................... 91 Statement of Revenues, Expenditures and. Changes in Fund Balance — Budget and Actual — Nonmajor Capital Project Fund.................................................................................... 92-93 CITY OF KALISPELL ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Combining Statement of Net Assets — Internal Service Funds.............................................................. 94 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Assets — Internal Service Funds............................................................................................................................ 95 Combining Statement of Cash Flows — Internal Service Funds............................................................ 96 Schedule of Federal/State Grants, Entitlements and Shared Revenues ............................................... 97 CashReconciliation..................................................................................................................................... 98-99 STATISTICALSECTION.......................................................................................................................................100-104 I The City Of Kalispell ---------------------------------- ----------------- ----------- -- ---------------- incorporated 1892 Telephone (406) 758-7700 FAX (406) 758-7758 Post. office Box 1997 Kati -spell, MT 7...ip 59903-1997 December 17, 2003 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, 2003, 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. 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 deteznnine 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. 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 terra. All significant operations of the City, as defined by the National Council of Governmental Accounting, Statement #3, 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 two component units on the combined statements. The Kalispell Parking Commission is a discretely presented proprietary type component unit. Tri City Planning is a 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. Cash Manama The City's demand deposits are interest beaming money market accounts. The City also utilizes the Statewide investment fool, S.T.I.P, for cash temporarily idle during th year. Rates of return vary based on markets, Insurance The City joined other Montana cities and towns to form a self-insurance pool offering worker's compensation and liability coverage. 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. Prospects 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 SB184, the ability of the City to raise revenue for basic services is increasingly difficult. The legislature, with 8B184, 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 provide basic services and look for additional ways to Rind these costs. Acknowledments In conclusion, I am able to report that the City of Kalispell is in sound financial conditions 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. In accordance with Section 7-6-41 i 1, MCA 1 hereby transmit the City of Kalispell Annual Financial Report as of June 30, 2003 for the fiscal year then ended. RWe;fully submitted, J Date 3-- City Accoun ant CITY OF KALISPELL ANNUAL FINANCIAL REPORT JUNE 30, 2003 ELECTED OFFICIALS Manager/Council form of Government Mayor Pamela B. Kennedy Council members: Donald Counsell Ward I Robert Hafferman Ward I Fred Leistiko Ward II Hank Olsen Ward H Other City Officials: City Manager l/1/2006 1/1/2004 Jim Atkinson 1/1/2006 Randy Kenyon 1/1./2004 M. Duane Larson 1/1/2006 Jason Peters Attorney Police Chief Fire Chief Finance Director City Judge Public Works Director Parks Director Community Development Director City Accountant 6 Chris Kukulski Charles Harball Frank Garner Randy Brodehl Amy Robertson Heidi Ulbricht .Tames Hansz Michael Baker Susan Moyer Rick Wills Ward III Ward III Ward IV Ward IV 1/l/2006 1/1/2004 1/1/2004 1/1/2006 FINANCIAL SECTION Managements Discussion and Analysis........................................................... ................................ 7-19 BasicFinancial Statements...........................................................................................................20-29 Notes to the Financial Statements.................................................................................................30-67 Required Supplementary Information...........................................................................................68-70 Other Supplementary Information.................................................................................................71-99 MANAGEMENT'S DISCUSSION AND ANALYSTS 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, 2003. 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 2 - 4 of this report, FINANCIAL HIGHLIGHTS The assets of the City of Kalispell exceeded its liabilities at the close of the recent fiscal year by $54,875,342 (net assets). Of this amount, $4,726,682 (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 $10,168,261, a decrease of $1,944,987 in comparison with the prior year. The majority of this decrease can be attributed to the $1.9 million expenditure for the Streetscape project out of the Downtown Tax Increment District, At the end of the current fiscal year, unreserved fund balance for the general fund was $1,200,450, or 19.6 percent of total general fund expenditures. ➢ The City of Kalispell's total debt increased by $16,647 during the current fiscal year. The City issued $489,177 in new Water revenue bonds for the meter replacement program while paying down other debt obligations. ➢ During the year, the City of Kalispell revenues for governmental programs (before special items) exceeded expenses by $1,059,037 (change in net assets). > In the City's business -type activities, program revenues increased $756,765 (or 14 percent); expenses increased $183,475 (or 4 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. 7 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 tool 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 tapes 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 and a legally separate Tri-city planning office. The financial information of these component units is reported in their own dedicated column. The government -wide financial statements can be found on pages 19 — 20 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 six major governmental funds, the general fund (always a major fund), the Downtown Tax Increment (special revenue) fund, the Community Development Loan Revolving (special revenue) fund, the UDAG (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. Individual data for these funds can be found in the combining statements found on pages 71 - 93 of this report. 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 21 - 24 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 the water and sewer as major funds. Individual fund data can be found for the other enterprise funds and the internal service funds in the combining statements on pages 94 - 96 of this report. The basic proprietary fund financial statements can be found on pages 25 — 27 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 28 of this report. 9 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 30 - 67 of this report. R : - l'��1;�.yi�ii : Call" As mentioned prior, net assets can be an important indicator of an entities financial well-being. For the period ending June 30, 2003, the City ofKalispell's assets exceeded liabilities by $54,875,342. CITY OF KALISPELL'S NET ASSETS Governmental Business -type Total activities activities 2003 2002* 2003 2002* 2003 2002* Current and other assets $15,597,408 $1 ,268097 $10,700,932 $ 9519,030 $ 26,298,340 .$26 787,1'27 capital assets -net $ 18,204,233 27,130,462 26,865,215; 45,334,695 28865,2'15 Total assets 33,801,641 171268;t}97 i 37,831,394 36,384,245 71,633,035 5$'652 342 Long-term liabilities outstanding $ 7,881 285 6,576,264 61085,$93 ' 14,457,549 6 0$5,393 Other liabilities $ 1,890 929 409,215 795 183'' 2,300,144 ..795 183 Total liabilities $ 9,772,214 5 154'849 5,985,479 6 860 576 16 757,893 Net assets: Invested in capital assets, net of related debt $12,489,553 20,819,432 2c ,..80 379 33,308,985 20 480„379 Restricted $ 8,369,130 8,470,545 5,595,883 16,839,675 6'S95883 Unrestricted $ 3,170,744 1,555,938 447,4Q7 4,726,682 2 447 407 '. Total net assets $ 24,029,427 $ 30,845,915 $ 29,623 669 ; $ 54,875,342 $ 29523,669 Fund Balances $ 2,113,248 _ $12�' l3,248 Investment in capital assets (e.g., land, buildings, machinery, and equipment), net of any related debt still outstanding on those assets makes up 61% 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 $16,839,675 or 31%of total net assets. $8,470,545 of this is restricted in the water and sewer funds and relates to bond issues. The $8,369,130 restricted in governmental activities consist of $812,951 for debt service, $2,784,074 for capital projects, $349,373 for public safety, $2,151,043 for public works, $40,052 for parrs, and $2,231,637 for community development. The remaining balance of unrestricted net assets ($4,726,682) may be used to meet the City of Kalispell's ongoing obligations to citizens and creditors. At the end of fiscal year 2003, 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 $1,059,037, accounting for 45% of the total City growth in net assets. Business -type activities. Business -type activities increased the City of Kalispell's net assets by $1,305,477, accounting for 55% of the total City growth in net assets. The key element of this increase was an increase in charges for services for business -type activities of 141/o or $756,766. The City's Ambulance service accounts for a significant portion of this (54%) increase. Increased ambulance charges were mainly the result of an increase in the billing rate structure, Increased rates in the Water, Sewer and Solid Waste funds, together with slight increases in demand, also resulted in increases in those funds charges for services. 11 CITY OF KALISPELL'S CHANGE IN NET ASSETS Governmental Business -type Total 12 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 2003, the City of Kalispell's governmental funds reported combined ending fund balances of $10,168,261, a decrease of $1,944,987 in comparison with the prior fiscal year. Of this amount only $843,296 is reserved, indicating that it is not available for new spending. This reserved is committed to pay debt service. The general fund is the chief operating fund of the City of Kalispell. At the end of fiscal year 2003 unreserved fund balance of the general fund was $1,200,450, and there was no reserved fund balance. 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 2003, unreserved fund balance represented 20% of total general fund expenditures. The decrease in the fund balance of the general fund during fiscal year 2003 was insignificant. The downtown tax increment fund is a special revenue fund which was established to help finance projects deemed crucial to the growth and continued viability of the City of Kalispell's downtown area. Fiscal year 2002 was the last year for this fund to receive tax revenue, and all funds were budgeted for approved downtown projects. However, due to delays in the completion of these projects, the fund balance was $559,541 at the close of fiscal year 2003, The completion of the approved projects should close out this fund in fiscal year 2004. 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 2003 the fund balance grew over 60%, increasing from $399,790 to $646,709, however, $251,813 of this total has been designated for specific redevelopment projects. This substantial overall fund balance increase was due to expenditures (loans and grants) of only $294,878, while revenues (mainly loan repayments) were $541,443. The UDAG (Urban Development Action Grant) fund (a special revenue fund) is very similar to the community development loan revolving fund. The City of Kalispell must clearly designate at least 51% of the UDAG funds, through loans and other programs, for the benefit of persons of low and moderate income. This fund is also self sustaining through loan repayments. During fiscal year 2003 the fund balance decreased $154,597 to $722,510. 13 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 contributable 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 increased to $111,082 from $89,469 during the fiscal year 2003 operating period. This increase was a result of the residual equity transfer of $88,855 from the Sunnyview Drive capital project fund, an will be used to retire bonds, 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 is expected to be completed in fiscal year 2004. All funds are expected to be expended for construction. Proprietary Funds The City of Kalispell's proprietary funds 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 $1,555,938. Of this amount, $617,674 was attributable to the water fund and $722,673 to the sewer. The total growth in net assets of all proprietary funds equaled $1,305,477, The water funds increase in net assets for fiscal year 2003 was $612,185, the sewer funds net assets increased $670,176. 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. 14 4000000 3500000 3000000 2500000 1: 2000000 a 1500000 1000000 500000 Expenses and Program Revenues - Business -type Act€vdles water sewer solid waste ambulance Activity GENERAL FUND BUDGETARY HIGHLIGHTS ra. ... by sau"-Bud- -tyy6 AOPA.e chsrgea toi ®6rfi46, a8% 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 $787,249 to the final amended budget figure of $6,403,071. Most of the difference between the original and the final budget was related to on —behalf retirement payments from the State of Montana for public safety employees. This is recorded as an expense of the City and is offset by a contribution revenue from the State. Total actual expenditures were $205,012 below the final budget amounts. General fund resources available for appropriation were $7,333,682, $49,039 less than the budgeted amount. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At the end of 2003, the City of Kalispell has $55,769,862 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, 15 Major capital asset events during the fiscal year 2003 included the following ➢ Purchase of land on 2"d Avenue West and construction on the land of a parking lot at a total cost of $208,326. ➢ $70,978 was spent to make upgrades to City Hall. ➢ Streetsca e projects cost $1,867,501, ➢ The new aquatic facility/skateboard park cost for fiscal year 2003 was $890,297. ➢ Three police patrol cars were added at a total cost of $69,976, ➢ A dump truck was purchased for the street department at a cost of $75,505. ➢ $266,505 was spent on the ongoing facility plan and rate study. ➢ The city replaced fire hydrants at a total cost of $90,343. ➢ 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 2003 was $374,400 ➢ Electrical upgrades were made at the Buffalo Hill well site at a total cost of $239,599 ➢ Equipment was replaced at the Waste Water Treatment Plant equaling $184,266. CITY OF KALISPELL'S CAPITAL ASSETS (NET OF DEPRECIATION) Governmental Business -type Total activities activities 2003 2003 2002 2003 Land $ 2,193 522 $ ,04462 $ 238,768 ; $ 238 76 '. $ 2,432,290 2,28 420 Buildings $ 6,783,045 7 040 912 219,806 236,1138 `' $ 7,002,851 7,277,020 Improvements not buildings $ 6,191,373 $ 6,191,373 3,10,778 Machine and equipment $ 1,792,117 1,815,340 792,025 711042. ' $ 2,584,142 ,533,182 Construction in Progress $ 1,170,512 402,346.; 328,614 378,88 $ 1,499,126 1 881 229 Source of Supply454 806 472 742 $ 454,806 42 742 Pumping Plant 1 061 264344 $ 1,061 264 8+4 85 Treatment Plant 6,019,942 ' 993t1 ; $ 6,019,942 9,730; Transmission and Distribution 14,402,257 138,29 $14,402,257 1 I33 829 General Plant 668,580 444,27 $ 668,580 444,275 Storm Sewers stem 2,944 402 2 994 574 $ 2,944,402 2;994,574 's Total $18,130,569 $151514,028 $ 27,130,464 $ 26,' 65,211 ? $ 45,261,033 $ 44379,244 '. Additional information on the City of Kalispell's capital assets can be found in note IV part D on pages 45 -48 of this report. 16 Debt At the end of fiscal year 2003, the City of Kalispell had total long-term debt outstanding of $14,857,718. Of this amount, $3,675,000 comprises debt backed by the full faith and credit of the government and $5,865,364 represents bonds secured solely by specified revenue sources (i.e., revenue bonds). The remainder consists of$2,235,000 outstanding on a SRF loan for construction of the wastewater treatment plant, $1,496,139 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 $361,683 of loans for the purchase of equipment, The City of Kalispell also has debt outstanding on the books of $236,108 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 2003 2002' 2003 002 2003 .2002 General obligation bonds $ 3,675,000 $ . 676,Q00 $ 3,675,000 31675,000 Revenue bonds $1,903 011 111093. 93 3,962,353 3 582,72 5865,364 5,99.7,014 SRF loans 2,235,000 2 4m Q t3 2,235,000 2 425 00Q Assessments $1,496,139 667,590' 1,496,139 1,E67,59t1 Contract debt/loans $ 534,541 459 516 63 7 250 711'S 597,791 a36...3.1 Total $ 7,608,691 $ ,91fi, 99 $ 6,260,603 $ 6, 84,835 .. $13,869,294 $1001,235 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 49 - 54 of this report. 17 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES Preliminary April 2003 statistics report Flathead County's unemployment rate at 5.3 percent, which is a decrease from the April 2002 rate of 6A percent. This is substantially higher than the State's unemployment rate of 4 percent, but compares favorably to the nations rate of 5.8 percent. ➢ The employment growth rate for Flathead County averaged 2.6 percent from 1996 to 2001. During this same period the County's unemployment rate dropped from 7.3% to 5.9%. )'o The City ofKalispell's population grew 19.4% during the 1990 decade. Flathead County and Northwest Montana have been experiencing rapid population growth for many years. All of these factors were considered in preparing the City of Kalispell's budget for the 2004 fiscal year During fiscal year 2003, unreserved fund balance in the general fund decreased to $1,200,450, The City of Kalispell has appropriated approximately 2% of this available fund balance for spending in the 2004 fiscal year budget (i.e., expenditures are expected to exceed revenues in the general fund by $15,000). It is intended that this use of available fund balance will avoid the need to raise taxes or charges during the 2004 fiscal. year. The City of Kalispell is expecting fiscal year 2004 revenues in the General fund to increase about 6% to $6,423,086, while expenditures are expected to increase to $6,437,890 from the fiscal year 2003 total of $6,196,908. Increased wages in the fire department, based on a contractual agreement, account for one of the largest increments of this increase. Another large increment is due to the need to replace/upgrade the heating, ventilation, and air conditioning system in the City Hall. The city has not added any major new programs to the 2003 budget. Budgeted expenditures of the City's water fund indicate a 104% increase over fiscal year 2003. This increase of $2,121,836 is partially financed by a 2004 revenue bond issue of $1,689,830. The sale of these bonds will finance an extension of water service to the four comers area of Highway 93 south of Kalispell and from Northern Lights Boulevard to Parkway Drive. It is also intended to finance the continued replacement of old water meters with the new radio read type, and to finance the purchase and installation of fire hydrants in new locations of the City. Other substantial increases in expenditures included the need for a federally mandated vulnerability assessment followed by an emergency preparedness plan at a cost to the water fund of $60,000. Repairs in the amount of $50,125 are budgeted for Noffsinger Springs. The sewer department, which includes the sanitary sewer and the waste water treatment plant, will also be issuing revenue bonds in 2004 to cover some of its expenditures, which are budgeted to exceed fiscal year 2003 expenditures by $2,165,914. The planned bond issue of $1,289,890 is to fund the extension of sewer services along Highway 93 south of Kalispell, expected to cost the sewer fund $1,414,900. Another $328,730 of 2004 budgeted expenditures is for lift station upgrades and repairs. A vulnerability assessment must also be performed for the sewer department. 18 Expenditures of the storm sewer fund are expected to increase 446% to $1,107,057 in fiscal year 2004. As is the case in the water and sewer funds the majority of this increase is capital related and a revenue bond issue will be made in the amount of $224,000. The majority of the capital outlay budget of $827,830 is for the Highway 93 south project ($395,000) and the bonded cross connections project ($226,130). The cross connections project is to eliminate direct storm connection to the sanitary sewer system, thereby, reducing treatment cost. Also, a federally mandated storm water regulatory compliance plan is budgeted for $63,600. The City of Kalispell's ambulance service is projecting an increase of $138,507 in fees for services. This increased revenue is just enough to cover budgeted expenses, As for the solid waste department, rate increases were approved for non-residential customers and are expected to generate $20,000 of new revenue. This new revenue will be offset by revenue lost through an agreement made with Evergreen Disposal regarding garbage collection in some areas of the City. Expenses and revenues of the solid waste fund are expected to remain consistent with prior years. 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. 19 City of Katispeil, Montana STATEMENT OF NET ASSETS As of June 30, 2803 Primary Government Component Units Governmental Business -type TP-City Parking AothAties Activities Total Planning Commission Assets Current Assets Cash and lnvestnvros S 10,243,380 $ 1,349,878 $ 11,593,258 $ 132,462 $ 22,202 Taxes receivable, net 2,026,788 65,385 2,091,873 - - Accoinds receivable, net 288,767 $58,319 835,686 - 5,470 €nlarest receivable 1,100 - t,100 - - Due from other governments 853,871 153.429 1,017,300 - - Current potion of notes receivable 160,219 - 166,219 - - Inventories - 100,815 109,815 - - Prepaids 44,468 - 44,458 - - Due from others 4,064 4,054 Total Current Assets $ 13,608,647 S 2,256,526 S 15,863,173 S 132,452 $ 27,733 N000gnt Assets Restricted Assets Cash and investments - 8,444,400 8,444,406 - - interkindreceivable 115,000 - 115,000 - Loom receivable 1,a75,761 - 1,875,761 - - Capdalassets- Depreclsbie, Net 14,840,199 26,536,630 41,376,729 21731 8,334 Capita€assets - Land 2,193,522 265,318 2,458,840 - Capital assets - Conshiotlon in progress 1,170,512 32B,614 1,499,128 Total Nancwont Assets $ 20,194,994 S 35,574,868 S 55,769,862 S 21,731 $ 8,334 Total Assets $ 33.801,641 1$ 37,831,394 $ 71,533,035 $ 154,183 $ 38,087 See Accompanying Notes to Financial,%atements 20 Primary Government Component Units Governmental Business -type Tr€ -City Parking..... Activities Activities Total Planning Cormmissicn UablBtle , Cued Llaw"los Accounts payable $ 939,841 S 309,924 S 1,248,765 $ 5,358 $ 932 Accrued payroll 183,351 58,729 240,080 5,922 1,082 Due to others 22,458 - 22,458 - - Current portion of kmg-term debt 524,170 - 524.170 - - Due to other funds (42,562) 42,562 - - - Purchase contract - - - - 6,552 Miidnagadue to contractor 139,152 - 139.1,92 - - Est liability for claims 124,519 124,519 Total Current Liabilities 5 100,929 S 409,215 $ 2,300,144 $ 11,280 $ 8,586 Loan -tern I„IaWNBes Wng-larm dew 7,003,521 6,2W,604 13,354,125 - - Interkmd payable - 115,000 115,(100 - Compensated absences 787,764 200,6W 988,424 45,796 2,684 Total Nonciu rent LlabQles 7,881.285 6,576,264 14,487,541) 45,796 2,664 Total Uabltities S 9,772,214 $ e,985,479 $ 16,757,003 $ 57,070 $ 11,230 Net Assets Invested in capita[ assets, net of related debt S 12489,553 $ 20,819,432 $ 33,308,985 $ 21,721 $ 8,334 Restricted for: Debt service 812,951 824,997 1,637,948 - - Capital projects 2,784,074 7,1345,548 10,429,622 Public Safety 340,373 349,373 Pub4c Works 2,151,043 2.151.043 Culture and Recreation 40,052 40,052 Hmusing and Community development 2,231,637 2,231,837 Unrestricted 3,170,744 1,555.938 4726,582 75,376 18,503 Total Net Assets $ 24,029,427 $ 30,845,915 $ 54,878,342 $ 97,707 $ 24,837 FunctionslPrograms Primary Government - Governmental activibes. General Government Public Safety Public Works Culture and Recreation Housing and Community Development Miscellaneous Interest Expense Unallocated depreciation Debt Service Expense Total Governmental Activities Business -type activities: Water Sewer Solid Waste Ambulance Total business -type activities Total Primary Government Component Units: Tri-City Planning Parking Commission Total Component Units City of Kalispell, Montana STATEMENT OF ACTIVITIES For the fiscal year ended June 30, 2003 Net (Expenses) Revenues and Chan es In Net Assets Program Revenues Prima Government Component knits Qperatin9 Capital usiness- Charges for Grants and Grants and Governmental type Tri-City Parking tenses Services Contributions Contributions Activities Activit s Total Plannina Commission 1,541,939 390202 (1,151,737) (1,151,737) 4,922,033 966,772 821,247 50,000 (3,084,014) (3,084,014) 1,540,717 863,257 825 34,531 (642,104) (642,104) 1,160,081 356,819 24,624 (778,938) (778,638) 1,162,224 59W,844 566,589 2,209 2,209 261,437 (261,437) (261,437) 534,259 (534,259) (534,259) 287,042 125,000 226,375 637,417 637,417 $ 11,122,690 3 33,461,936 $ 1,638,285 $ 309,906 $ (5,612,663) $ (5,812,568) $ $ $ 1,388,745 1,543,388 425,134 599,777 599,777 2,874,950 3,239,645 198,262 562,957 562,957 51093 568,150 - 51,457 51,457 1,233,459 1,165,167 47,091 (31,201) (31,201) $ 5,993847 $6,506,350 $ 47r091 $ 623,396 $ 1,182,990 $ 1�182�990 $ 17,116,537 S 9,968,286 $ 1,585,376 $__ 933302 $ (5,812,563) $ 1,182,990 $ (4,629,573) 323,181 345,151 21,970 115,795 105,077 (10,719) $ 438,977 $ 460,228 $ $ S 21,970 - (10,719) General Revenues Property taxes for general purposes $ 4,163,922 $ $ 4,163,922 $ Property taxes for a specific purpose - - Gas Tax 290,319 290,319 Grants and entitlements not restricted to specific programs - - Entitlement 1,965,736 1,965,736 HB 20 7,873 7,873 SB 417 6,780 6,780 452 204 State Gaming Lic. 50,500 50,500 Other 5,303 5,303 Investment earnings 381,167 122,487 503,654 Proceeds from sale of Fixed Assets - - - Misceilaneous Proceeds of loan Special Items Transfers Total general revenues, special items and transfers $ 6,871,600 $ 122,487 $ 6,994,087 $ 452 204 Change in Net Assets 1,059,037 1,305,477 2,364,514 22,422 (10515) Net Assets - July 1, 2002 12,113,246 17,198,589 29,311,837 (10,691) 44,6W Restatements 70,972 12,384,411 12,456,363 107,392 (9,334) Restatements (GASB #34) $ 10,786,170 $ (42,562) $ 10,743,60$ $ (22,016) Net Assets • July 1, 2W2- Restated 22.970,390 29,540,438 52,510,828 74,685 35,352 Net Assets - June 30, 2003 $ 24,029,427 S 30,845,915 $ 54,876,342 $ 97,107 24 837 Sue Aecompanyiig rites to Flnanoial Statements 21 ASSETS Current Assets: Cash and investments Taxes Receivable - net Accounts Receivable - net Interest Receivable Due From other governments Prepaids Due from other funds Due from others Total current assets Noncurrent assets: Advances Loans receivable Total noncurrent assets Total Assets LIABILITIES Current Llabilltigs: Accounts Payable Accrued Payroll Due to other funds Due to others Deferred Revenue Retainage - due to contractor Total current liabilities Total Liabilities FUND BALANCES Reserved for: Debt Service Unreserved, reported in: General Fund Special revenue funds Capital projects funds Debt Service funds Total fund balances Total liabilities and fund balances See Aocompa"ng Notes to Financia€ Statements City of Kalispell, Montana Balance Sheet Governmental Funds June 30, 2003 Other Total General Tax Comm. Dev POOL Governmental Governmental Fund increment Loan Rev. UDAG SID 343 CONST. Funds Funds $ 963,767 $ 980,512 $ 662,068 $ 738,217 $ 32,944 3,062,210 $ 3,688,971 $ 10,118,689 249,377 0 0 0 1,334,495 0 442,916 2,026,788 0 0 0 0 0 0 266,767 266,767 1,100 0 0 0 0 0 0 1,100 313,266 0 0 0 78,138 0 462,467 853,871 60 0 0 0 0 0 44,408 44,468 0 0 0 0 0 0 2,452 2,452 1,142 0 0 0 0 0 2,912 4,054 $ 1,628,712 $ 980,512 $ 6.52,066 $ 738,217 $ 1,445,577 3,062,210 $ 4,910,893 $ 13,318,189 115,000 0 0 0 0 0 0 115,000 45,237 0 960,815 1,036,928 0 0 0 2,041,980 160,237 $ 0 $ 960,815 $ 1,035,928 $ 0 0 $ 0 $ 2,156,980 $ 1,688,949 $ 980,612 $ 1,612,883 $ 1,774,145 $ 1 $ 677 3,082,210 $ 4 910 893 $ 16,475,169 78,374 346,239 359 10,687 0 323,613 176,692 935,964 158,290 0 0 5,020 0 0 20,041 183,351 0 0 0 0 0 0 2,452 2,452 2,458 0 0 0 0 0 20,000 22,458 249,377 0 960,815 1,036.926 1,334,495 0 442,916 4,023,531 0 74,732 $,0w 0 0 58,737 683 139,152 $ 488,499 $ 420,971 $ $66,174 $ 1,061,636 $ 1,334,496 382,360 S 662,784 $ 6,306,908 $ 480,499 $ 420,971 $ 966,174 $ 1,061,636 $ 1,334,495 382.360 S 662,784 $ 6,306,903 0 0 0 0 111,082 0 732,214 843,296 1,200.450 0 0 0 0 0 0 1,200,450 0 $59,541 646,709 7222,510 0 0 3,442,026 5,370,786 0 0 0 0 0 2,679,860 104,214 2,784,074 0 0 0 0 0 0 -30,345 -30,345 $ 1,200,460 $ 669,641 $ 6461709 $ 722,610 $ 111,082 $ 2,679,860 $ 4,248,109 S 10,168,261 $ 1,ti88,949 $ 980,612 $ 1,612,883 $ 1774145 $ 1,44S,S77 $ 3,062,210 $ 4,910,893 $ 16,476,169 22 City of Kalispell, Montana Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets As of June 30, 2003 Total fund balances - governmental funds $ 10,168,261 Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds 18,130,569 Receivables that are not available soon enough to pay for the current period's expenditures are deferred In the funds, 4,023,531 Internal service funds are used by management to: 1)account for the cost of providing medical insurance to employees, and 2)account for data processing (computer supplies and services) cost. The governmental portion of the internal service fund are included with governmental activities 112,521 Long-term liabilities are not due and payable in the current period and therefore are not reported as liabilities in the funds (8,405,455) Total net assets - governmental activities $ 24,029,427 See Accompanying Notes to Financial Statements 23 City of Kalispell, Montana Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2003 Other Total General Tax Comm. Dev POOL Governmental Governmental Fund Increment Loan Rev. UDAG S10 343 CONST. Funds Funds Revenues: Taxes and Assessments $ 2,115,245 $ 42,791 $ 0 $ 0 $ 104,279 0 $ 2,713,773 $ 5,036,088 Licenses and Permits 149,104 0 0 0 0 0 360,853 509,957 Intergovernmental 2,498,686 0 61899 0 0 0 1,399,840 3,905,425 Charges for Services 693,544 0 0 0 0 0 108,833 802,377 Fines and Forfeitures 453,892 0 0 0 0 0 0 453,892 Miscellaneous 68,470 0 900 0 0 0 380,487 449,857 Investment Earnings 85,638 6,456 533,644 153,506 0 52,664 76,785 908,693 Total Revenues $ 8,064,579 $ 49,247 $ 641,443 $ 163,506 $ 164,279 62,664 $ 5,040,571 $ 12,066,289 Expenditures; General Government 1,113,424 0 0 0 0 0 144,325 1,257,749 Public Safety 3,495,649 0 0 0 0 0 1,284,533 4,780,182 Public Works 562,189 0 0 0 0 0 881,262 1,443,451 Culture and Recreation 749,069 0 0 0 0 0 238,946 988,015 Housing and Community Development 0 179,709 18,646 308,103 0 0 617,039 1,123,497 Miscellaneous 2,254 0 0 0 0 0 259,183 261,437 Capital Outlay 147,029 1,870,925 275,878 0 0 890,297 210,818 3,394,947 Debt Service 25,739 $25 0 0 231,521 0 728,527 986,612 Total Expenditures $ 6,096,363 $ 2,,061,459 $ 204,524 $ . 308,103 $ 231,521 890,297 $ 4,364,633 $ 14,236,890 Excess (Deficiency) of Revenues Over (Under) Expenditures (30,774) (2,002,212) 246,919 (164,697) (V,242) (837,633) 676,936 (2,169,8011 Other Financino Sources (Uses): Transfers In 0 0 0 0 0 0 115,330 115,330 Transfers Out (102,706) 0 0 0 0 0 (12,624) (115,330) Proceeds LTD 40,888 0 0 0 0 0 112,754 153,642 Proceeds sale of Fixed Assets 0 0 0 0 0 0 0 0 Total other financing sources (uses) $ _(61,818) $ 0 $ 0 $ 0 $ 0 0 $ 216,460 $ 163,642 Net Change in Fund Balances $� (92,592) $ 20�212) $ 246,919 $ (154,597) $ _ (67,242) (837,633) $ 691,398 $ (2,016,969) Fund Balance Beginning of year 1.228,215 2,539,612 399,790 877,107 89,469 3,547,493 3,461,562 12,113,248 Residual Equity Transfers 18,146 0 0 0 88,855 0 (107,001) 0 Restatements 46,681 22,141 0 0 0 0 2,150 70,972 Fund Balance End of year $ 1,200450 $ 669,641 $ 646,709 $ 722,510 $ 111,082 2,679,860 $ 4,248,109 $ 10,168,261 See Accompanying Notes to Financial Statements 24 City of Kalispell, 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, 2003 Amounts reported for govemmenfal activies in the statement of activities are different because: Net change in fund balances - total governmental funds 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 as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Some expenses reported in the statement of activies do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Long-term debt proceeds provide current financial resources to governmental funds, but Issuing debt increases long-term liabilities in the statement of net assets, Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Change in net assets - statement of activities See Accompanying Notes to Financial Statements 25 $ (2,015,959) 2,696,890 115,438 (36,043) (153,642) 452,353 $ 1,059,037 ASSETS Current Assets: Cash and investments Taxes Receivable - net Accounts Receivable - net Due From other governments Total current assets Noncurrent assets: Restricted cash Inventories Fixed Assets Less Accumulated Depreciation Total noncurrent assets Total Assets LIABILITIES Current Liabilities: Accounts payable Accrued Payroll Est. liability for claims Total current liabilities Noncurrent Liabilities: Long-term debt Compensated absences Total Noncurrent Liabilities Total Liabilities Nei Assets: Invested in capital assets, net of related debt Restricted Net Assets Unrestricted Net Assets Total net assets See Aocw pargmg Notes to Financia€ Statements Water $ 423,962 110,282 51,703 $ 585,947 $ 817,545 109,815 14,601,610 (4,404,128) City of Kalispell, Montana Statement of Net Assets Proprietary Funds June 30, 2003 Business -Type Activities Sewer Ambulance Solid Waste $ 787,065 $ 6,053 $ 132,798 22,341 - 42,744 189,640 268,397 - 42,198 69,528 $ 1,041,244 $ 274,460 $ 245,070 $ 7,532,220 $ $ 94,641 30,303,001 405,438 1,132,860 (14,154,900) (280,318) (473,001) All Internal Service $ 1,349,878 $ 124,691 65,085 568,319 163,429 - $ 2,146,711 $ 124,691 $ 8,444,406 $ - 109,815 46,442,809 308.204 (19,312,347) (234,540) $ 11,124,742 $ 23,680,321 $ 125,120 $ 754,500 $ 35,684,683 $ 73,664 24721,565 $ 399,570 $ 999,570 $ 37,831,394 $ 198,355 $ 62,204 $ 241,030 $ 3,751 $ 2,939 $ 309,924 $ 3,877 15,885 15,923 18,604 6,317 56,729 - - - 124,519 1 78,089 $ 256,953 $ 22,355 $ 9,256 $ 366,653 $ 128,396 1,687,260 $ 4,267,167 $ 115,000 $ 106,177 $ 5,375,604 $ - 50,426 61,618 50,954 37,662 200,660 5 1,937,686 $ 4,328,785 $ 166,964 $ 143,939 $ 6,576,264 $ $ 2,015,775 $ 4,585,738 $ 180,309 $ 153,095 $ 6,942,917 $ 128,396 9 8.259,696 $ 11,6W,934 $ 125,120 $ 553,682 $ 20,819,432 $ 73,664 $17,544 7,632,220 - 120,781 8,470,645 - 617,674 722,673 86,141 172,012 1,598,500 (3,705) $ 9,694,914 $ 20,135,82T $ 211,261 $ 846,475 $ 30,888,477 $ 69,959 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. $ 42,562 Net assets of business -type activities $ 30,845,915 26 Operating Revenues: Charges for services Miscellaneous Internal Services Special Assessments Intergovernmental Total Operating Revenues Operating Expenses: Personal services Supplies Purchased services Fixed Charges Loss/bad debt expenses Depreciation Building materials Total operating expenses Operating Income (loss) Nonoperating revenues (expensesk Interest and investment revenue Intergovernmental revenue Hookups Debt Service interest expense Total nonoperating revenue (expenses) Net income (loss) before contributions and transfers Capital Contributions Change in net assets Total net assets - beginning of year Restatements Total net assets - end of year See Accompanying Notes to Financial Statements City of Kalispell, Montana Statement of Revenues, Expenses, and Changes in Net Assets Proprietary Funds For the Year Ended June 30, 2003 All Business -Type Activities Internal Service Water Sewer Ambulance Solid Waste Totals Funds $ 1,354,417 $ 2,520,938 $ 1,154,552 $ 563,946 $ 5,593,853 $ - 3,734 2,246 615 - 6,595 1,005 - - - - 1,567,769 - 273,142 - 4,204 277,3446 - - - 47,091 47,091 - $ 1,358,151 $ 2,796,326 $ 1,202,258 $ $ 5,924,885 $ 1,568,774 568,150 $ 537,932 $ 704,037 $ 555,752 $ 314,804 $ 2,112,525 $ - 25,737 45,639 13,962 30,800 116,138 11,717 242,716 620,390 62,531 13,338 938,975 1,621,461 127,348 178,550 56,509 68,824 431,231 22,694 11,905 6,452 493,930 3,148 515,435 - 318,035 1,141,773 49,675 82,020 1,591,503 42,145 31,537 9,250 - - 40,787 $ 1,295.210 $ 2,706,091 $ 1,232,359 $ $ 5,746,594 $ 1,698,017 512,934 $62,941 $ 90,235 $ (30,101) $ 55,216 $ 178,291 $ (129,243) $ 12,408 $ 107,219 $ 10 $ 2,850 $ 122,487 $ 2,547 94,868 - - - 94,868 - 185,237 443,319 - 628,556 (73,535) (168,859) (1,100) (3,759) (247,253) - $ 218,978 $ 381,679 $ (1,090) $ $ 598,658 $ 2,547 (909) $ 281,919 $ 471,914 $ (31,191� $ 54,307 $ 776,949 $ 126,696 $ 330,266 $ 198.262 $ - $ - $ 528,528 $ $ 612,185 $ 670,176 $ (31,191) $ $ 1,305,477 $ (126,696) 54,307 $ 5,803,992 $ 10,318,182 $ 242,452 $ 833,963 $ 17,198,589 $ 196,655 3,278,737 9,147,469 - (41,795) 12,384,411 - $ 9,694,914 $ 20,135,827 $ 211,261 $ 846,475 $ 30,888,477 $ 69,959 27 City of Kalispell, Montana Statement of Gash .Flows Proprietary Funds For the Year Ended June 30, 2003 FUND FUNDS F11ND FUND FUNDS Cash flows from Operating Acitivies: Cash Received From Customers $ 1,216,627 $ 2,541,676 $ 565,457 $ 4,323,760 Cash Received From Assessments 263,847 $ 551,755 815,602 Cash Payments to Suppliers for Goods & Services (428,550) (828,798) (132,598) (111,995) (1,501,931) Gash Payments to Employees for Services (531,415) (695,510) (542,859) (311,682) (2,081,466) Cash From Other Operating Revenues 115,104 2,246 47,706 165,056 Net Cash Provided by Operating Activities Cash Flows from Noncapital Financing Activities, Loans from Other Funds $ 60,000 $ 60,000 Net Cash Provided by Noncapital Financing Activities Cash Flows From Capital and Related Financing Activities: Acquisition and Construction of Capital Assets $ ($23,222) $ (245,916) $ (152,144) $ (1,221,282) Proceeds-Bonds/Loans 453,878 453,878 Principal Paid on Debt Service (97,621) (489,243) (26,544) (613,408) Interest Paid on Debt Service (69,966) (158,934) (3,759) (232,6.59) Cash Received From hookups 185,237 441,042 626,279 Capital contributed by Tax IncrementlOther Govt 88,463 88,463 Net Cash Used for Capit:sl and Related Financing Activities $ (263,231� $ L453,051), $ 0 $ (192,447) $ (898,729) Cash Flows From Investing Activities Interest on investments Advance to outer funds net of repayments Purchase of Sidewalk and Club Warrants Redemption of Sidewalk and Curb Warrants Net Cash Used in investing Activities Net increase in Cash and Cash Equivalents Cash and Cash Equivalents at July 1, 2002 Cash and Cash Equivalents at June 30, 2003 Reconciliation of Operating income to Net Cash Provided by Operating Activities: Operating Income Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation Bad Debt Expense/Loss on Disposal Change in Assets and Liabilities: S 12,408 $ 107,219 S 10 $ 2,849 S 122,486 0 (13,364) (13,364) 9,815 9,815 $ 120,943 S 934,090 $ (2,284) $ (51,520) $ 1,001,229 1,120,564 7,359,056 8;338 278,962 9,766,920 $ 1,241,507 $ 9,293,146 $ 6,054 $ 227,442 $ 9,768,149 $ 62,941 $ 90,235 S (30,101) S 55,216 $ 178,291 318,03.5 1,141,773 49,675 85,168 1,594,651 9,781 6,452 493,930 510,163 Decrease (Increase) in Accounts Receivable (24,296) 20,738 (589,095) (592,653) Decrease (htcrease) in Assessments Receivable (9,295) (16,395) (25,690) Decrease (Increase) in Inventory (24,061) (24,061) Increase (Decrease) in Accounts Payable 22,849 25,041 404 1,695 49,989 Increase (Decrease) in Compensated Absences 6,517 8,527 12,893 2,394 30,331 Net Cash Provided by Operating Activities - ➢isclosmre of Accour1* Policy: For purposes offt ffma ent of cash 11a ,. the Fsaeeprise Funds consider all highly liquid roves mends (including msi ieted a rh) with a maturity of three months ar less mbet purchased to be cash cquivalcrvs. Set Accompanying Notes to Financial Statements 28 City of Kalispell, Montana Fiduciary Funds Statement of Fiduciary Net Assets For the Year Ended June 38, 2803 ASSETS Cash and short-term investments Total assets LIABILTIIES Accounts payable Total liabilities See Accompanying Notes to Financial Statements 29 Agency Funds $ 215,589 $ 215,589 215,589 $ 215,589 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUKE 30, 2003 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. The 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 primary government and its component units, entities for which the government is considered to be financially accountable. These financial statements include all funds, account groups, agencies, boards, commissions and authorities which meet the criteria for inclusion in the 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 two discretely presented component units, the Kalispell Parking Commission and Tri City Planning 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 Jenne 21, 1991 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. It is the intention of the City of Kalispell that the downtown business community manages the parking for the downtown district. The Parking Commission opened their doors on February 1 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 untended that the Parking Commission be operated as a Proprietary type fund and has been classified as such in the City's financial statements. 30 CITY OF KALISPF,LL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 Tri City Planning On June 30, 2001 Flathead County pulled out of the County -wide Administrative Board (CAB) which funded the Flathead regional Development Office (FRDO). The CAB was a Joint Venture between the County, and the Cities of Kalispell, Whitefish, and Columbia Falls. The CAB created FRDO for the purpose of coordinating all land use planning, reviewing and approving subdivisions, and zoning and enforcement in Flathead County. FRDO also assisted in annexations by the cities. On July 1, 2001 the Tri City Planning Office was created by interlocal agreement between the three cities that were served by FRDO. The purpose of the Tri City Planning Office is to perform the functions of FRl)O 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 self insured 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. 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. Governmental 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 fluid financial statements. 31 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 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 arc 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 funds. 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 unmatured 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 (excluding motor vehicle 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. 32 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS RUNE 30, 2003 GovixTimental 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 -terms 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 fallowing major governmental funds: The general fund is always a major fund. The Downtown Tax increment fund was established in 1985 to account for $2,100,000 of urban renewal bond revenue, 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, The UDAG fund is used to account for certain Community Development loans and the majority of the department's expenses. The 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 will be used to account for revenues and expenses associated with the construction of the City's new aquatic facility and skate park at Woodland Park. 33 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS DUNE 30, 2003 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 funds: 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. Trust funds account for assets held by the City under the terms of a formal trust agreement. 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 modified 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. 34 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS 3UNE 30, 2003 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 financial 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 fi-om parties outside the City's taxpayers or citizenry, as a whole; they reduce the net cost of the function to be financed from the City's general revenues. Amounts reported as program revenue include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary f ind'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 i. Budget Process An annual appropriated operating budget is adopted each fiscal year for the General Fund, Special Revenue Funds, Debt Service Funds 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 Coinicil 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. 35 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS NNE 30, 2003 All material budget amendments and transfers during FY 2003 are described below: Increased the appropriations in the General fund in the amount of $700,000 for costs associated with on -behalf retirement payments from the State of Montana for police and fire department employees. Increased appropriations in the Ambulance fund in the amount of $150,000 for cost associated with actual bad debt expense. Increased the appropriations within the Self -Insured Health fund in the amount of $374,000 for claims. 2. Encumbrances All approphations 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 (STIF). 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 ill, A, except for investments in STIP and particular bonds, which are reported at fair va]ue. 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. 36 CITY OF KALISP 11 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 2. Receivables and Payables Transactions between funds that arc representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either interfund receivableslpayables (i.e„ the current portion of interfund loans) or advances to/from other funds (i,e.,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 governmental 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 either billed in one installment due November 30 or 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 first 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, 2003, were based upon a taxable valuation of $23,654,303. An allowance for uncollectible 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, 2003: Water S 6,387 Sewer S 12,605 Ambulance $ 156,864 37 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS .TUNE 30, 2003 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, a. 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 arc 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. 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. 38 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS .TUNE 30, 2003 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 Improvements Other than buildings 10-50 years Machinery, vehicles and equipment 5-20 years Water and Sewer lines, pump stations 10-50 years 6. Compensated Absences It is the City's policy and state law to permit employees to accumulate a limited amount of earned but unused vacation benefits, 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 mare than 90 days into the new calendar year. There is no restriction on the amount of sick leave that may be accumulated. Upon separation, employees are paid 100 percent of accumulated vacation and 25 percent of accumulated sick leave. 7. bong - Term Obligations In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long -terns 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. 39 CITY OF KAL,ISP LL NOTES TO FINANCIAL STATEMENTS JCTNE 30, 2003 8. 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 Interfand transactions consisting of identified services performed for other funds or costs billed to other funds are treated as expenditures in the fiord receiving the services and as revenue in the find performing 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 fluids are accounted for in the appropriate interfund receivable and payable accounts, These types of transaction, if between the same type of fluid (i.e,, governmental or proprietary) have been eliminated in the government -wide financial statements. II. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of certain differences between the governmental fund balance skeet 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 $8,405,455 difference are as follows: G. O. Bond payable $3,675,000 SID Bonds payable $1,496,139 Loans $2,466,552 Compensated Absences $ 787,764 Net adjustment to reduce fund balance — total governmental funds to arrive at net assets — governmental activities 40 CITY OF KAL 1SPELL NOTES TO FINANCIAL STATEMENTS .l t TN:E 30, 2003 B. Explanation of certain differences between the governmental funs[ 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 $2,750,085 difference are as follows: Capital outlay $3,394,947 Depreciation expense (644,862) Net adjustment to increase net changes in fund balances — total governmental funds to arrive at changes in net assets of governmental activities $2,750,085 Another element of that reconciliation states that "the issuance of longterm 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 $262,668 difference are as follows: Debt issued or incurred: Capital lease financing $(140,278) Sidewalk and Curb bond proceeds (13,364) $(153,642) Principal repayments: SID debt $ 175,000 Capital lease debt 267,538 Sidewalk and Curb debt 9,815 452,353 Net adjustment to increase net changes in fund balances — total governmental funds To arrive at changes in net assets of governmental activities $298,711 41 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 III. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Excess of expenditures over appropriations For the year ended June 30, 2003, expenditures exceeded appropriations in the culture and recreation department of the general fund by $29,576, This overexpenditure was funded by available fund balance. B. Deficit Fund Balances The following Funds had deficit fund balances at June 30, 2003: Special. Revenue Funds: Permissive Health Levy $ 2,859 Debt Service Funds; G. O. Bond $ 28,897 1994 Sidewalk & Curb $ 983 1996 Sidewalk & Curb $ 108 1997 Sidewalk & Curb $ 357 The deficits in the Debt Service funds were caused by a short -fall in anticipated revenue and will be eliminated as delinquent assessments are collected. The Permissive Health Levy Fund is due $27,000 from the Flathead County, W. DETAILED NOTEDS 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. 42 CITY OF KALISPELL NOTES TO FINANCIAL, STATEMENTS JUNE 30, 2003 Cash Composition Cash and investments may include cash and cash items; demand, time, savings, and fiscal agent deposits; investments in the State Short -Tenn 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, 2003, are as follows: Cash on hand $ 1,525 Cash in banks: Demand Deposits 270,577 Time Deposits 43,202 Bidders Bonds 2,750 Bonds/Warrants 26,139 STIP 20,063,778 Total W 4 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 $313,779, 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 .Tune 30 2003, equaled or exceeded the amount required by State statutes. 43 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 Categorized Risk 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 I investments and those not subject to categorization as of June 30, 2003 are shown below: Category I Warrants Canymg Value Market Value 26,139 $ 26,139 Not subject to categorization State Short -Terra Investment fool 20 0,063. 778 20.063,778 Total Investments a M $ 0,089,�� 7 Governmental Accounting Standards Board (GASB) Technical Bulletin No. 94-1 requires governmental entities 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 fool 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, 2003, were as follows: Cate &Qm I % Asset -backed $733,397,874 52 Variable rate 631,005,520 45 Other Securities 56,000,000 3 Total $1,420,403,394 i 0 Amounts invested by the City in STIP may be redeemed at any date at the carrying value on that date. According to GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and External Investment Pools, STIP is considered and External 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, 20-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 Ilelena, Mt. 44 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENT'S JUNE 30, 2003 B. Interfund Receivables and Payables The composition of interfund balances as of Tune 30, 2003, were as follows: Due to/from other funds: Receivable Fund Payable Fund Elnaount SID Revolving 1994 S & C $1,545 SID Revolving 1996 S & C 261 SID Revolving 1997 S & C 646 Total Advances to/from other funds: Receivable Fund Payable Fund Amount General Fund Ambulance S C. Operating Transfers The following is an analysis of operating transfers in and out during Fiscal Year 2003: From To Amount General Fund Police Resource (1) $11,$$0 General Fund Drug Enforcement 24,395 General Fund COPS 1,111 General Fund I,EMA 11,270 Parks in lieu 1STEA 12,624 General Fund Fire Station Const, 54,050 Total $115.330 45 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS RUNE 30, 2003 D. Fixed Assets Fixed asset activity for the year ended June 30, 2003 was as follows: Balance Balance Governmental Activities: July 1. 2002 Additions Deductions June 30, 2003 Fixed assets not being depreciated: Land $ 2,044,652 $148,870 $ 2,193,522 Construction in Progress 1,502,346 900,241 $ 1 232 075 1,170,512 Total fixed assets not being depreciated 3.546,998 1 0,,,.,,49,1.11 (1,232,0751 3,364,034 Fixed assets being depreciated: Buildings 9,891,659 70,978 9,962,637 Improvements Other Than Buildings 3,970,630 3,255,296 7,225,926 Machinery and Equipment 3314,841 271.644 (100,356) 3,486,129 Total fixed assets being depreciated 17 1,_77,129 3,597,918 10(.,,,,00 3�, 56) 20,674,692 Less accumulated depreciation for: Buildings (2,850,747) (328,845) (3,179,592) Improvements Other Than Buildings (860,852) (173,701) (1,034,553) .Machinery and Equipment 1 498 501 (271,180) 75,669 1 6(„ 94,012.) Total accumulated depreciation (5,210,100) (773,726) 75,669 (5,908,157) Total fixed assets, being depreciated, net 11,967,029 2,824,192 (24,687) 14766,535 City fixed assets, net _ _. 514...__. 7 $3. 833J-03 $IU. 25f 7Q) $J-8"Q,5.6� 46 CITY OF KALISI'ELL NOTES TO FINANCIAL STAI"EN E?NTS JUNE 30, 2003 Balance Balance July 1,2002 Additions Deductions June_ 30 2003 Internal Service Funds Data Processing $302,328 $ 34,468 $ (28,592) $308,204 Less Accumulated Depreciation 220 987 4( 2,144) 28,592 23( 4,540) Net $.g1.341 $_l7-�Zi�?7 �664 Component Unit Tri-City Planning $51,110 $0 $0 $51,110 Less Accumulated Depreciation 22-,016 (7.363) p ...(29.379) Total —S — W-hD (?.... -- S2-17-11 47 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENT'S JUNE 30, 2003 Balance Balance Business -type Activities: July 1, 2002 Additions Deductions June 30. 2003 Fixed assets, not being depreciated: Land $ 238,768 $ 238,768 Const. in Progress 378,883 $180,535 $ 23f Q,804) 328,614 Total fixed assets, not being depreciated 617,651 180,535 23( 0�8043 567,382 Fixed assets, being depreciated: Buildings 316,731 316,731 Machinery & Equip 2,042,577 280,714 (599,076) 1,724,215 Source of Supply 764,952 764,952 Pumping Plant 1,442,054 249,924 1,691,977 Treatment Plant 14,664,123 99,950 (47,219) 14,716,853 Transmission and Distribution 19,668,443 1,009,930 (101,208) 20,577,165 General Plant 1,343,020 298,317 1,641,337 Storm Sewer System 4,398,103 124_,568_ 8( 0 474) 4,442,197 Total fixed assets, being depreciated 44,640,003 2,063,403 82( 7,977) 45,875,427 Less accumulated depreciation for: Buildings (80,623) (16,302) (96,925) Machinery & Equip (1,325,736) (131,656) 525,200 (932,190) Source of Supply (292,210) (17,936) (310,146) Pumping Plant (597,389) (33,324) (630,713) Treatment Plant (7,964,393) (777,706) 45,188 (8,696,911) Transmission and Distribution (5,829,814) (446,301) 101,208 (6,174,908) General Plant (898,745) (74,012) (972,757) Storm Sewer System 1 4403 529) 9f 4,266) Q1 97,795) Total accumulated depreciation (18,392,440) (1.591,503) 671,596 (19,312,347i Total fixed assets, being depreciated, net 26,247,563 471,900 1556 381) �26563,080 Business -type activities fixed assets, net $26 865T214 $_652,435 _ 387,185 _2.7a. 39A� 6 48 Component Unit CITY OF KALISPELL NOTES TO FINANCIAL, STATENIENTS JUNE 30, 2003 Balance Balance July 1, 2002 Additions Deductions June 30, 2003 Parking Commission $55,329 $ (5,456) $49,873 Less Accumulated Depreciation (41391) (6,280) 5,932 4� 1,539) Net W.>2.n $ .. —47-6 $8,334 Depreciation was charged to functions/programs of the primary government as follows: Governmental activities: General government $283,074 Public Safety 131,767 Public Works 87,723 Culture and Recreation 160,287 Community Development 35,206 Total W-()57 Business -type activities Water $ 318,035 Sewer 1,141,773 Ambulance 49,675 Solid Waste 82,020 Total RO-150 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 the assets. 49 CITY OF KALISPELL NOTES TO FINANCIAL, STATEMENTS JUNE 30, 2003 E. Tang -Term Debt Changes in Long -Term Debt Liabilities — During the year ended June 30, 2003, the following changes occurred in liabilities reported in long, -term debt: (1)G.O. Bond (1,2) Revenue Bonds (2) SRF Loan-WWTP (1) Assessments (1,2) Contract Debt/loans (1,2,3) Comp. Absences (1) reported in long-term debt account group (2) reported in enterprise funds (3) reported in component units Balance Balance July 1, 2002 Additions Deductions June 30, 2003 $3,675,000 $3,675,000 5,997,014 489,176 (620,826) 5,865,364 2,425,000 (190,000) 2,235,000 1,667,590 13,364 (184,815) 1,496,139 536,634 140,277 (79,120) 597,791 990,180 51,642 (4,938) 1,036,884 $15.29 41 _9 9 .(i 079.6991 4 Q 7$ 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, 2003 were as follows: Origination Interest Due Principal Purpose Date Rate Term Date Amount Aquatic Facility 4/15/02 2%r-4.9% 20 yrs 20227t3 50 Annual Balance Pg ment June 30, 2003 varies 75 000 CITY OF KAL,ISPEL,L, NOTES TO FINANCIAL, STATEMENTS XNE 30, 2003 Special Assessment Debt — Special assessment brands are secured by alien on the assessed properties. The primary source of repayment is the assessments Ievied 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 Pjagse Date Rate Term Date Amount 1'_ay ent June 30,_2003 SID 341 9/l/95 6.06% 15 yrs. 2011 $ 100,000 varies $ 40,000 SID 342 l l/l/95 6,34% 15 yrs. 2011 209,000 varies 75,000 SID343 6/12/01 3,6-5.5% 20yrs. 2021 1,581,500 varies 1,355,000 1995 W & C 1/2/96 8.5% 8 yrs. 2004 22,823 varies 2,852 1996 W & C 1/2/97 8.5% 8 yrs. 2005 12,148 varies 3,037 1997 W & C 10/1/98 8.0% 8 yrs. 2006 8,572 varies 2,143 1998 W & C 10/1/99 7,75% 8 yrs. 2007 1,687 varies 843 1999 W & C I/l/00 8.5% 8 yrs. 2008 1,769 varies 1,106 2000 W & C 1/2/01 9.5% 8 yrs. 2009 2,315 varies 1,737 2001 W & C 1/2/02 5,0°/a 8 yrs. 2010 1,209 varies 1,058 2002 W & C 1/2/03 4.25% 8 yrs. 2011 13,364 varies 13,364 Total Special Assessment Bonds U1954 1,496.140 51 CITY OF KALISPI LL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 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 P ose Date Rate Term Maturity Issued June 30 20032003 2001 Water 6101 4.00% 20 yrs. 2021 $ 761,000 $ 707,000 2000 Solid Waste 3/01 4,75% 5 yrs, 2006 159,265 106,177 1996 Water 6/96 5.50% 15 yrs. 2011 1,060,000 670,000 2002 Sewer/WWTP 4/02 151% 9 yrs. 2011 2,355,000 1,990,000 2000 Westside TIF 3/00 6,21% 10 yrs. 2010 2,500,000 1,903,011 2003 Water 1/03 2.85% 10 yrs. 2013 489,176 489.176 Total Revenue Bonds $�_41 $5,$65,364 Series 2000 Westside Urban Renewal Tax Increment Bond and Significant Provisions The Board of .Investments loan for the Stream Project has interest rates dependant on the creation of jobs. The loan of $2,500,000 to the City is for the purchase of 60,000 square feet of the old Gateway West Mall. The area is being revitalized as part of a Westside Urban Renewal District (TIF) project. Stream. International, Inc. was leasing the property back as a facility for the operation of a computer support center. In August 2003 Stream International ceased operations in their Kalispell call center. Although, obviously jobs are not being created, at this time the interest rate has remained unchanged. This loan has a first lien on the tax increment of the district. The Flathead County Economic Development (Port) Authority has committed $125,000 per year toward the debt service, and manages the physical property. Pledged Revenues The City shall generate revenues from: 1) interest repayment of a loan to Strearn International, Inc., 2) user fee equal to Stream's Montana corporation license tax, 3) revenues generated from the Westside Tax Increment District, and 4) $125,000 from the Port Authority levy that will be sufficient to pay the principal thereof and interest thereon when due. During fiscal year 2003, the total bond payments due equaled $339,350. The Port Authority contributed $125,000. Westside Tax increment District generated $211,892. 52 CITY OF .KAIAS:P1_;LL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 Si nificant Provisions of the 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. 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 requirements. 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 - Net revenues will be at least equal to 125% of the maximum principal and interest requirements for all future fiscal years. Sewer Revenue Bonds Ordinances and Re aired Information 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: 1. a statement in detail of the income and expenditures of the system for the fiscal year, identifying capital expenditures and separating them from operating expenditures (see in the fund financial statement section); 2. a balance sheet as of the end of the fiscal year (see in the Band financial statement section); 3. the number of premises connected to the system at the end of the fiscal year (sewer — 6,626), 4. the amount on band in account of the Sewer System Fund at the end of the fiscal year ($8,319,285), 5. a list of the insurance policies and fidelity bonds in force at the end of the fiscal year, setting out as to each the amount thereof, the risks covered thereby, the name of the insurer or surety and the expiration date of the policy or bonds. Montana Municipal Insurance Authorit Date of Policies: July 1, 2002 thru June 30, 2003 Type of Policy Property Insurance Liabili Policy Coverages: Building - $25,000,000 $750,000 Machinery & Equipment - $50,000,000 53 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS -TUNE 30, 2003 State Revolving Fund Loan — In November 1991, the City entered into an agreement with the State Revolving Fund (SRF) to borrow funds to Martially finance the construction of a wastewater treatment plant facility. This obligation is to be repaid from the operating income of the sewer fund. Interest Amount Outstanding Purpose Rate Term Borrowed June 30, 2003 Sewer — SRF 4% 20 yrs. � �Q Loans/Contracted Debt Original Origination Interest Due Principal Balance PpMose Date Rate Term Date Amount 3 June ._ 2003 *Board of Housing 3/1/95 6.0% 30 yrs. 2/l/25 $ 271,000 ._p $ 236,108 BOI; Road Grader 2/25/00 2,85% 7 yrs. 2/15/07 122,382 74,206 BOL Fire Truck 2/15/00 185% 5 yrs. 2/15/05 87,603 37,182 BOI: Boone Trk/Leaf Ldr 1/26/01 2.85% 5 yrs. 2/15/06 88,950 55,767 BOL P/U/Aerator 5/16/03 2,85% 5 yrs, 8/15/08 40,888 40,888 BOI: Bldg/Plow Trks 5/16/03 185% 5 yrs, 8/15/08 99,390 90,390 Enterprise Funds BOL John Deere Loader 3/10/00 2.85% 7 yrs, 2/15/07 103,000 63.x 550 Total Loans 13 *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. 54 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 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 $ 787,764 Tri-City Planning 45,796 Enterprise Funds 200,660 Parking Commission 2,664 Total 1.03 Re uirements to amortize debt The annual requirements to amortize all long-term debt outstanding, excluding compensated absences payable, as of June 30, 2002, were as follows: Special Assessment Contracted Revenue FY Bonds Debt Bonds GO. Bonds Totals 2004 $ 251,697 $ 395,605 $ 934:943 $ 286,025 $ 1,868,270 2005 180,844 410,668 960,769 290,475 1,842,756 2006 159,018 391,780 951,688 289,463 1,791,949 2007 154,365 371,436 827,411 288,388 1,641,600 2008 139,913 335,298 798,590 287,088 1,560,889 2009-2013 636,479 1,395,049 2,281,059 1,451,688 5,764,275 2014-2018 530,400 97,487 277,880 1,453,745 2,359,512 2019-2023 70,600 97A87 138,960 1158,995 1,466,042 Total 2,121 $3 4.4 _.. 1 _44 ��OS�S $ 1m295,2 Principal 1,4414,139 2,810,851 5,853,365 $ 3,595,000 13,673,355 Interest 709378 681962 1317,934 1,910,865 4,621,939 Total ,2_ � 494 8 �._ L�L7.1:&�Q0 $___� 505 865 :1.1��`�5,;9�. 55 CITY OF KAL.ISPELL NOTES TO FINANCIAL, STATEMF;NTS JUNE 30, 2003 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 -sharing 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 $6,088,240 for FY03, of which $5,262,909 is covered by PE RS, MPORS, or FURS. Component Unit payroll covered by PERS was $42,402 for the Parking Commission, and $180,952 for Tri City Planning. 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, 2003, 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, 2001, 2002 and 2003, as listed below, were equal to the required contributions for each year. PERS MPORS FURS PARKING COMM TRI CITY 2001 $ 194,590 $ 167,019 $ 128,806 $ 3,156 2002 $ 212,574 $ 179,112 $ 136,878 $ 3,239 $ 12,103 2003 $ 208,585 $ 177,642 $ 138,247 $ 2,883 $ 12,305 56 CITY OF KALISPELL NOTES TO FINANCIAL, STATEWNTS NNE 30, 2003 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. The City had 50 retired or terminated employees participating in the plan as of June 30, 2003, 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 $ 2,653 Due from Flathead County 310,613 Total &313.266 Special Revenue Funds: Due from Flathead County $ 305,566 Due from State of Montana 75,619 Due from Dept, of Justice 12,721 Total $393,906 Debt Service Funds: Due from Flathead County 1.146,699 Enterprise Funds: Due from Flathead County $ 11.1,726 Due from State of Montana 6,405 Due from Board of Investment 35,298 Total $153,429 57 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENT'S JUNE 30, 2003 L Restricted Cash/Investments The following restricted cash/investments were held as of June 30, 2003. These amounts are reported within the cash/investment account on the Combined Balance Sheet, EnteMrise Funds Water Bond Reserve $ 134,352 Replacement 582,724 SRF Loan Reserve 100,468 Sewer Operating Reserve 128,000 Replacement 4,624,242 Bond Contingency 650,550 Capital Improvement 1,134,848 Storm Sewer 994,580 Garbage Replacement 80,686 Bond Reserve 16,000 Sinking & Interest 2095 $_ .5,470 5.45 58 CITY OF KALISPE.IA, NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 J. Fund Equity Reservations of equity show amounts that are not appropriate for expenditure or are legally restricted for specific uses. Designations of equity are used to show the amounts within unreserved equity which are intended to be used for specific purposes but are not legally restricted. Reserves and/or Designations of the City at June 30, 2003, consisted of: ,Special Revenue Funds: Community Development Designated for Redevelopment $ 251,195 Community Development Designated for Interest Subsidy 628 Courtyard Maintenance Designated for Courtyard Apartments 32,521 Total $$ ?84.334 Debt Service Funds: Reserved for Debt Service SA.. l nterorise Funds: Water Reserve for revenue bond $ 134,352 Water Reserve for Replacement 582,724 Water Reserve for inventory 109,815 Water Reserve for SRF Loan 100,468 Sewer Reserve for operations 128,000 Sewer Reserve for Replacement — Sanitary 2,222,307 Sewer Reserve for revenue bond 650,550 Sewer Reserve for unprovementslWWTP 1,134,848 Sewer Reserve for replacement 2,401,935 Sewer Rescrve for Storm Sewer 3,967,662 Solid Waste Designated for replacement 80,686 Solid Waste Reserve for revenue bond 16,000 Solid Waste Reserve for Sinking and Interest 24,094 '.Total it:.1-:A�M41 59 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS DUNE 30, 2003 YL Changes in Contributed Capital All contributed capital accounts of the City of Kalispell have been closed into retained earnings. Contributed capital is now recognized as revenue by the City when it is contributed. At the end of fiscal year 2002 the Water Fund and Sewer Fund reported contributed capital of $3,278,737 and $9,147,467 respectively. L. 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 Adjustment Governmental Component Unit: Tri-City Planning $ 107,392 Legal settlement with Flathead County (FRDO assets) General 46,681 Reclassify employee loans from deferred revenue Special Revenue: Airport 13,891 Interest revenue from Airport Tax Increment fund Airport 2,150 Past due debt recorded as receivable Downtown TIF 22,141 Inventory to Water Fund Airport TIF (13,891) Interest revenue to Airport fund Enterprise: Water 3,278,737 Closed contributed capital equity accounts Sewer 9,147,469 Closed contributed capital equity accounts Solid Waste (41,795) Asset write-off — changed policy Adjustments were also made to the beginning balances of land and buildings in the general fixed asset account group. Land $ 121,299 GASB 34 (value land aquired in prior periods) Buildings $ 253,974 CTASB 34 (value buildings aquired in prior periods) 60 CITY OF KAL'ISPELL NOTES TO FINANCIAL STATEMENTS DUNE 30, 2003 M. -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, 2003, is as follows: Operating Revenue $ Depreciation expense Operating Income (loss) Current Capital: Plant, Property & Equip: Additions Deletions Working Capital Total Assets Long-term I...iabilities: Payable from Operating Revenues Total Equity $ N. Residual Equity Transfers WATER SEWER AMBULANCE GARBAGE TOTAL, 1,358,151 $ 2,796,326 $ 1,202,258 $ 568,150 $ 5,924,885 318,035 1,141,773 49,675 82,020 1,591,503 62,941 90,235 (30,101) 55,216 178,291 1,256,860 615,571 0 174,822 2,047,253 101,208 86,825 0 559,470 747,503 507,858 784,291 252,095 235,814 1,790,058 11,710,689 24,721,565 399,570 999,570 37,831,394 1,937,686 4,328,785 165,954 143,839 6,576,264 9,694,914 $ 20,135,827 $ 211,261 $ 846,475 $ 30,888,477 Residual equity transfers are made to transfer the remaining equity balance of a discontinued fund to another :fund. Transfers made during the year were as follows: Fund Making Transfez Fund Receiving, Transfer Amount S1D Revolving Fund (Debt Service) General $ 18,146 S & C Funds (Debt Service) SID Revolving Fund (Debt Service) $ (210) SID 3637 (Debt Service) SID Revolving fund (Debt Service) $ (12,847) SID 343 Construction (Capital Project) SID 343 (Debt Service) $ 88,855 61 CITY OF KALISPELL NOTES TO FINANCIAL. STATEMENTS RUNE 30, 2003 Q. Joint Ventures 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 Hoard 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, 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. NWMHR has built 16 units also. The agreement provides for the management of the housing complex for low income mousing, All operations and maintenance of the housing complex are managed by Northwest Montana Human Resources, NWMHR maintains a trust fund in the City's name to record the revenues and expenses of the housing complex. As of June 30, 2003 the equity in the fund was $42,618. The debt payments on the mortgage are paid from the proceeds of the rents by NWMHR. The principal balance is recorded on the City's books in the Long -Term Debt Group of Accounts. The original amount of the loan was $271,000, The balance as of June 30, 2003 is $236,108. P. 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 agency fund in the City's natne and are periodically remitted to the City by the County Treasurer. The County charges the City for fees associated with City Special Assessments. 62 CITY OF KALISPELL NOTES TO FINANCIAL, STATEMENT J NE 30, 2003 Q. 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, c) 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 amounts 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, Employee medical insurance is provided through a privately administered, self -insured plan, Given the lack of coverage available, the City has no coverage for potential losses 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 $7,500 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 funds based on total salaries and wages. The agreements for formation of the pools provide that they will be self-sustaining through member premiums, 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 rata 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 snake 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 i3CBS into the City Health fund, The claims are submitted weekly by BC/BS 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, 2002 $ 40,688 Claims Incurred $ 1,510,284 Claims Paid 1 1.594.1.15 Claims .Payable June 30, 2003 L1244 63 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUKE 30, 2003 R. Pending Litigation The following is a list of litigation pending against the City and the amount of damages claimed by the Plaintiff. The City Attomey has made no evaluation as to the outcome of each case. The City has liability insurance that may cover all or part of the damages, Accordingly, no provision has been made in the financial statements for these contingent liabilities. Damages Requested Loss Potential Status NuPac v, City of Kalispell $70,000 Remote White v. Ci r unknown unknown MMIA evaluating Olson v.City $ 1,000 possible Justice Court Glick v. City $3,000,000 remote MMIA Cameron v, Ci none Tecified possible MMIA Bur ert v. City, et al. unknown remote Federal Court Kruckenberg v. City none none District Court Holthausen v. Hanchett/City $ 3,500 unknown MM] A/Munici al Court West North v. Oty none nominal District Court 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 loam 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. 64 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 The City has $960,815 recorded as loans receivable as of June 30, 2003 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, 2003 balance $ 109,092 A 20 year redevelopment loan at 6% with United Way in January 2000. Original Loan amount $ 133,500 June 30, 2003 balance $ 120,388 A 10 year loan with Stream., Inc. at I I % 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, 2003 balance $ 806,447 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, 2003, amounted to $694,209, U. Wastewater Treatment Plant agreement with Evergreen The City of Kalispell entered into an Interlocal Agreement with the Evergreen Sewer District ##1 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, 2003 is $2,401,935 of which Evergreen's interest is $480,114. The City of Kalispell has sole responsibility for the use of these funds. 65 CITY OF KALISPI LL NOTES TO FINANCIAL STATEMENTS .1 CJNE 30, 2003 V. Stream International/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. 66 CITY OF KALISPELL NOTES TO FINANCIAL., STATEMENTS JUN1 30, 2003 W. Subsequent Events In August of 2003, Stream international closed their computer support call center in the old Gateway West .Mall. Stream continues to pay the City rent. Stream is also actively pursuing possible new tenants for the property. 67 Budgetary Fund Balance, July 1, 2002 Resources (inflows): Taxes and assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures Miscellaneous Investment earnings Proceeds of long tear" debt Transfers in Proceeds from sale of fixed assets Amounts available for appropriation Charges to Appropriations (outflows): General Government Public Safety Public Works Culture and Recreation Housing and Community Development Miscellaneous Capital outlay Debt service Transfers out Total Charges to appropriations Budgetary Fund Balance, June 30, 20M See Accanying Notes to Financial Statements City of Kalispell, Montana BUDGETARY COMPARISON SCHEDULE For Fiscal Year Ended June 30, 2003 GENERALFUND ACTUAL AMOUNTS VARIANCE BUDGETED AMOUNTS (BUDGETARY WITH FINAL ORIGINAL, FINAL BASIS) See Note A BUDGET 1,235,807 1,228,215 1,228,215 2,134,249 2,134,249 2,115,245 (19,004) 115,865 115,865 149,104 33,239 1,883,785 2,585,285 2,498,686 (86,599) 655,874 691,874 693,544 1,670 400,000 400,000 455,892 53,892 82,233 78,233 68,470 (9,763) 100,00(i 100,000 85,638 (14,362) 49,000 49,000 40,888 (8,112) 6,656,613 7 382 721 7,333,682 (49,039) 1,124,923 1,164,538 1,113,424 41,114 2,683,960 3,619,354 3,495,649 123,705 575XG 575,9W 562,169 13,711 679,4139 719,493 749,069 (29.576) 2,255 2,255 2,254 1 188,706 188,706 147.021) 41,677 39,73D 39,730 25,739 13,991 120,879 103,095 102,700 389 5.615,822 6,403,071 6,198,059 205,012 1,040,991 979,650 1,135,623 155,973 66 TAX INCREMENT ACTUAL, AMOUNTS VARIANCE BUDGETEDAMOUNTS (BUDGETARY WITH FINAL O I&NAL FINAL BASIS) see Note A BUDGET 2,535,887 2,539,612 2,539,612 50,113 50,113 42,791 (7,322) 25,000 26,000 6,456 (16,544) 2,611,000 2,614,725 2588859 2506 180,000 179,709 179,709 2,431,000 2,430,466 1,870,925 559,541 825 825 2,611,000 2,611,000 2,051,459 559,541 3,725 537,400 633,675 Budgetary Fund Balance, July 1, 2002 Resources (inflows): Taxes and assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures Miscellaneous Investment earnings Proceeds of long term debt Transfers in Proceeds from sale of fixed assets Amounts available for appropriation Charges to Appropriations (outflows): General Government Public Safety Public Works Culture and Recreation Housing and Community Development Miscellaneous Capital outlay Debt service Transfers out Total Charges to appropriations Budgetary Fund Balance, June 30, 2003 See Accompanying Wes to Fimncfai Statements City of Kalispell, Montana BUDGETARY COMPARISON SCHEDULE For fiscal Year Ended June 30, 2003 COMMUNITY DEVELOPMENT LOAN REVOLVING ACTUAL AMOUNTS VARIANCE BUDGETEDAMOUNTS (BUDGETARY W$TH FINAL ORIGINAL FINAL BASIS) See Note A BUDGET 399,790 399,790 399,790 6,899 6,899 - 900 900 527,231 527,231 533,644 6,413 148,860 f,075,8B1 927,021 941,233 14,212 130,000 130,0W 18,646 111,354 301,263 301,263 275,878 25,385 431,263 431,263 294,524 136,739 644,618 495,758 646,709 160,951 UDAG ACTUAL AMOUNTS VARIANCE BUDGETED AMOUNTS (BUDGETARY WITH FINAL ORIGINAL FINAL BASIS) See Note A BUDGET 875,404 877,107 877,107 167,649 167,649 153,506 (14,143) 1, 043, 053 1,044,756 1,030, 613 14 143 424,131 424,131 308,103 116,028 424,131 424,131 308 103 116,028 618,922 620,625 722,510 101,885 69 BUDGETARY COMPARISON SCHEDULE BUDGET-TO-GAAP RECONCILIATION Note A - Explanation of Differences between Budgetary Inflows and Outflows and GAAP Revenues and Expenditures GENERAL TAX INCREMENT COMMUNITY DEV. UDAG ND FUND EUND_ FUND Sourceslinf lows of resources Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule Differences - budget to GAAP The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes Proceeds from long term debt are inflows of budgetary resource but are not revenues for financial reporting purposes Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances- governmental funds Usesfoutflows of resources Actual amounts(budgetary basis) "total charges to appropriations" from the budgelart comparison schedule Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances - governmental funds See Accornpan)mg Notes to Financial Statements 7,333,682 2,588,859 941,233 1,030,613 (1,228,215) (2,539,612) (399,790) (677,107) (40,888) 6,064,579 49,247 541,443 153,506 61198,059 2,051,459 294,524 308,103 (102,706) 61095,353 2,051,459 294,524 308,103 70 City of Kalispell, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2003 2170 2185 21$8 2210 2360 2370 2372 2380 AIRPORT AIRPORT WESTSIDE PARKS IN LIEU COMP, INS, RETIREMENT PERMISSIVE HEALTH INCREMENT INCREMENT HEALTH LEVY ASSETS: 010100 Cashfinvestments $ 35,740 S 1,342,341 S 265,259 S 7,919 S 166,678 S 3051346 S 2909 S 158,592 Total for combined statement $ 35,740 $ 1,342,341 S 26S,259 S 7,819 S 1",678 S 105,346 S (29,859) S 159,592 011300 Taxes receivable - real estate S 12,945 S 161 S 25,509 S 27,178 $ 14,787 $ 30,666 0115H Taxes receivable - personal property 12,91.0 420 15,222 18,347 14,744 21,957 011800 Special Assessments receivable Rent rooelvable Total for combined statement S 0 S 25,855 S 581 8 0 S 40,731 S 45,525 S 29,531 $ 52,623 012000 Imefram sldmnik & curb funds 0131100 Due from otherslgovernments $ 2,912 S 33.740 S 32,999 $ 36,766 S 27.000 $ 55,912 014100 Prepaid expenditures 44,409 TOTAI, ASSETS $ 38652 S 14019M S 265,S46 S 7,819 S 284,S16 S 187,637 S 26672 S 270127 LIABILITIES: 020200 Accounts payable S Ill $ 11,549 S 5,000 S 6,100 021200 Due To (Retalnage, etc.) 0211U Due To SI➢ Revolving Fund 020600 Accrued payable S 595 S 1,566 Total far combined statement S 111 S 11,549 S 5,000 S 6,100 S 595 $ 1,566 S 0 S 0 022300 Worred revenue- loans receivable 022310 Deferred revenue- real & protest taxes S 12,945 S 161 $ 25,509 S 27,178 S 14,787 S 30,"6 022320 Deferred revenue- personal property takes 12,910 420 15,222 19,347 14,744 21,957 0223M Referred revenue- special assessments Total for combined statement S 0 $ 2$,855 S 581 S 0 $ 40,731 S 45,525 S 29,531 $ 52,623 TOTAL LIABILITTES S Ill S $7,404 S 5,591 S 6100 S 41,326 S 47 091 S 29 31 S 52,623 FUND BALANCES Reserved Fund Balance 027100 Unreserved Fund Balance S - 39,541 S 1,364,532 S 260,259 $ 1,719 5 243,490 S 140,$46 S (21859) S 217,504 Total Equity S- 38,541 S 1,364,532 S 260,259 S 1,719 S 243,490 S 1",546 S (2,859) S 217,504 TOTAL LIABILITIES AND FUND EQUITY S 38,652 $ 1,401,936 S 265,040 3 7,819 S 294,916 S 187,637 S 26,672 S 270,127 See Accamaawng Mates to Finandat Stalemenls 71 City of Kalispell, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30,2003 2394 244M 2401 2420 2500 2600 2925 2882 BUILDING LIGHT DECORATIVE GAS'IA% SPECIAL ❑R13AN FORESTRY MAGI GRANT COURTYARD ENFORCFMFNT MAINTENANCE, LIGIITMARNT. STRF.ETMAINT. DISTRICT MAINTENANCE ABBEYS: 010100 Casltlluvesmsents S 342,090 S 8,527 S 6449 S 319,319 S 274,089 $ 27,532 S 68,493 S 42,418 Total for combined statement 5 342,090 $ 8,527 S 6,449 S 319,319 S 274,099 S 27,532 S 69,483 S 42,618 011300 Taxes receivable - rest estate 011500 Taxes receivable- personal property 011800 Special Assessments receivable S 7,890 S 403 S 40,451 S 6,446 Rent receivable Total for combined statement S 0 S 7,11" $ 403 S 0 S 40,451 S 6,446 S 0$ 0 i112000 Due from sidewalk & curb funds 013000 Due from others/governments 5 17,463 S 947 S 77,$95 5 13,639 014100 Prepaid expenditures TOTAL ASSETS S 342.090 5 33,980 S 7,799 S 319,319 S 392125 S 47 617 S 69,493 $ 42,618 LIABILITIES: 02.02110 Accounts payable S 6,030 S 12,031 $ 164 S 2,298 S 2,390 S 344 S 0 021200 clue To (Relainage, Ar.) 600 83 021134 Due to SID Revolving Fund 020600 Accrued payable 4,056 7,336 2,494 Total for combined statement S 10,086 S 12,031 S 164 S 2,898 $ 9,799 S 2,838 S 0 S 0 022300 Deterred revenue - loans receivable 422310 Deferred revenue- real & protest taxes 022320 Deferred revenue- personal properly taxes 022330 Deferred revenue- special assessments S 7,890 S 403 S 40,451 S 6,446 Total for combined statement S 0 S 7,890 S 403 S 0 S 40,451 S 6,446 S it 0 TOTAL LIABILITIES S 1%086 S 19,921 S 567 S 2 898 S 50,250 S 9,284 S 0 3 0 FUND BALANCES Reserved Fund Balance 027100 Unreserved Fund Balance S 332,004 S 13,$S9 S 7,232 S 31 421 S 341,875 S 38,333 S 68 483 42,618 Total Equity S 332,004 S 13,959 S 7,232 S 316,421 $ 341,87$ $ 39,333 S 68,483 S 42,08 TOTAL LIABILITIES AND FUN➢EQUITN S 342,090 S 33,830 S 7,799 $ 314,319 S 392,125 S 47,617 5 63,483 S 42,618 See Accompe ® Notes to FinandaT Statemei is 72 ASSETS: 010100 Cashllnvestments Total for combined statement 011300 Taxes receivable- real estate 011S00 Taxes receivable- personal prop" O31R00 Special Assessmeutsreceivable Rent receivable Total for combined statement 012000 Due from sidmutk & curb funds 013000 Due from others/governments 014100 Prepaid expenditures TOTAL ASSETS LIABILITIES: 020200 Accounts payable 021200 Due To (Retabtage, etc.) 021134 Due To SID Revolving Fund 020600 Accrued payable Total for combined statement 022300 Deferred revenue - loans receivable 022310 Deferred revenue - real & protest taxes 022320 Deferred revenue- personal property taxes 022330 Deferred revenue- special assessments Total for c mbined statement TOTAL LIABILITIES FUND BALANCES Reserved Food Balance 027100 Unreserved Fund Balance Total Equity TOTAL. LIABILITIES AN1) FUND EQUITY See Amwwtyin9 Notes to Ffnanda[ Statements City of FLdispell, Montana Combining Balance Shed Nonmajor Special Revenue Funds June 30, 2003 2914 2915 2916 2940 2945 2957 TOTAL OF ALL POLICE RESOURCE POLICE RESOURCE DRUG ENFORCE.. 2ND AVE W GRANT CDBG-El) GRANT FEMA GRANT SPMAL REVEL (U] OFFICER OFFICER(2) GRANT STREAM FUNDS S 3,407 S 11,481) S 351 S $5,046 5 20,000 S 105S2 S 3,21R,216 S 3,407 S (11,481) S (351) S 55,066 S 20,000 S 10,552 S 3,219,216 S 111,246 $3,09 55,190 $ 0 S 0 S 0$ 0 S 0 S 0 S 250,036 S - $ 12,721 S 61515 S 75,619 396,RiR 44,409 S 3,407 S 1240 5 fi 164 S 130,SR5 S 20,000 S 10 552 $ 3,909478 S 130,685 S 176,692 S 20,000 20,683 S 1,611 S 1,241)...S. 1,143 20,041 S 1,611 S 1,240 S 1,143 S 130,685 S 20,600 $ 0 S 217,416 s 0 111,246 $3,600 $5,190 S 0 S 0$ 0 S 0 S 0$ 0 $ 250,036 S 1,611 S 1240 S 1143 S 130695 S 20,000 S 0 S 467,452,. S 1,796 S 5,021 $ 10,552 J,442,026 $ 1,796 S 0 S 5,021 S 0$ 0 S 10,552 S 3,442,426 S 3,407 S 1,240 S 6,164 S 130,685 $ 20,000 $ 10,552 S 31909,478 73 REVEN1ES: 310000 Total taxes 363000 Total assessments 32(XW Total licenses/permits 330000 Total intergovernmental 340000 Total charges fur services 360000 Total miscellaneous 370000 Total investments TOTAL REVENUES EXPENDITURES; 410000 Total general government 420000 Total public safety 430000 Total public works 460000 Total culture & recreation 470000 Total community development 490000 Total debt service 510000 Total miscellaneous 900 Capital Outlay TOTAL EXPENDITURES Excess revenue over (under) expenditures 380000 Other financing sources (uses): 382014 Sale of land 381070 Proceeds of loan 383000 Operating transfers in 521000 Operating transfers (out) Excess revenues and other sources over (under) expenditures and other uses Fund Balance July 1, 2002 Prior Period Adj Fund Balance June 30, 2003 See Accompanying Notes to Financial Statements City of Kalispell, Montana Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 2170 2195 Airport Airport T1F Budget after Budget after Actual Transfers Actual Transfers _ S 235,997 S 236,800 S 2188 WesisideTIF Budget after Actual Transfers 493 $ 1,158 $ $25 S 0 39,694 11,308 10,995 $ 14,225 54,881 58,923 18,596 0 0 24,000 0 5,000 S 30,416 7 14,225 S 334,562 $ 3661231 S 493 S 6,158 $ 13,732 8 14,294 $ 52,024 S 95,024 S 6,791 S 6,791 2,2fdi 4,500 16,712 471925 0 3501000 S 13,732 S 14,294 S 68,736 S 142,949 S 9,041 S 361,291 S t6,684 S (69 $ 261,826 S 221,282 S (8,548) $ 355,133) $ 0 S 459,520 S 16,684 S (69) $ 261,926 S 6S2,802 S (81548) S (355,133) S "16 3 1,116,597 S 269,807 16,041 (13,891) $ 38,541 S 1,364,532 $ 260,259 74 REVENUES: 310000 Total taxes 363000 Total assessments 320000 Total licenses/permits 33000B Total intergovernmental 340000 Total charges for services 360000 'Total miscellaneous 370000 Total investments TOTAL REVENUES EXPENDITURES: 410000 Total general government 42000 Total public safety 430000 'Total public works 460000 'Total culture & recreation 470W Total community development 490000 Total debt service 510000 Total miscellaneous 900 Capital Outlay TOTAL EXPENDITURESS Excess revenue over (under) expenditures 380000 Other financing sources (uses): 382014 Sale of land 381070 Proceeds of loan 3"000 Operating transfers in 521000 Operating transfers (out) Excess revenues and other sources over (under) expenditures and other uses Fund Balance July 1, 2002 Prior Period Adj Fund Balance June 30, 2003 See Accompanying Notes to financial Statements City of Kalispell, Montana Nonmaior Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 2211) 2360 2374 Parks is Lieu caupreheuatve Insurance Retirement Budget after Budget after Budget after Actual Transfers Actual Transfers Actual Transfers S 253,916 S 262,408 S 306,957 $ 309,700 28,429 28,682 50,254 $1,212 $ 19,393 S 65,013 673 0 $ 10,066 S 65,023 S 292,345 S 290,690 $ 357,211 S 360,912 S 46,333 S 44,397 292,280 304,514 20,375 20,444 20,244 18,807 S 259,03 S 333,808 $00 9.i0 $ b,1t10 S 31,000 $ 6,100 S 31,000 S 25803 $ 333,800 S 379,732 S 3891102 $ 13,966 $ 34,023 S 23,662 S 43,110) S 22,521) S 28,190 S (12,624) S (34,023) S 1,342 S 0 $ 23,662 $ (43,116) $ (22,521) S (28,190) $ 377 S 219,828 S 163,067 S 1,719 $ 243,490 S 140,546 75 REVENUES: 310000 Total taxes 363000 Total assessments 320(W Total licensestpermits 330000 Total intergovernmental 340000 Total charges for services 360000 Total miscellaneous 37000t1 Total investments TOTAL REVENUES EXPENDITURES: 410000 Total general government 420000 Total public safety 430000 Total public works 460M Total culture & recreation 470000 Total community development 490000 Total debt service 510000 Total miscellaneous 900 Capital Outlay TOTAL EXPENDITURES Excess revenue over (under) expenditures 380000 Other financing sources (uses): 382014 Sale of land 381070 Proceeds of loan 383000 Operating transfers in 521000 Operating transfers (out) Excess revenues and other sources over (under) expenditures and other uses Fund Balance July 1, 2002 Prior Period Adj Fund Balance June 30, 2003 See Accompanying Notes to Financia$ Statements City of Kalispell, Montana Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2003 2372 23H 2394 PermtsAveileanh Levy Ream Building Code Ruder alter Budget after Radio after Actual Transfers Actual Transfers Actual Transfers S 25S,tx58 $ 255,669 S 369,054 S 395,842 S 360,853 S 254,558 55,970 57,904 400 0 S 255,658 S 255,658 $ 425,024 S 453,646 S 361,253 $ 2S4,550 $ 35,445 $ 35,445 S 62,547 S 84,922 169,315 169,315 285,408 295,635 $ 317,494 S 317,679 20,199 2%199 40,215 44,208 33,558 33,558 4002 491817 0 1,000 30,850 30,850 S 258,517 $ 258,5t7 $ 436,672 S 47S 582 $ 348,344 S 348,529 S (209) $ (2,859) $ (11,6 $ 21,936 S 12,909 $ 3,979) S 12,909 S (93.979) $ (11,648) S (21,936) S 0 S 229.152 S 319,1195 S (2,859) $ 217,504 S 332,004 76 REVENUES: 31(3M Total taxes 363000 Total assessments 320000 Total licenses/permits 330000 Total intergovernmental 340W Total charges for services 360000 Total miscellaneous 370(W 'Total investments TOTAL REVENUES EXPENDITURE& 410000 Total general government 4200M Total public safety 430000 Total public works 460000 Total culture & recreation 470000 Total community development 490000 Total debt service 510000 Total miscellaneous 900 (Capital Outlay TOTAL EXPENDITURES Excess revenue over (under) expenditures 380M Other financing sources (uses): 382014 Sale of land 381070 Proceeds of loan 383000 Operating transfers in 521000 Operating transfers (out) Excess revenues and other sources over (under) expenditures and other uses Fund Balance July 1, 2002 Prior Period Atli Fund Balance June 30, 2003 See Accompanying Notes to Financiat Statements City of Kalispell, Montana Noumajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 2400 Light Maintenance Budget after Actual Transfers S 133,939 S 133,214 2401 lfecwatire Light Maint, Budget after Achill Transfers $ 6,363 S 6,390 2420 Gas Tax Budget aft" Aefual Transfers $ 296,319 S 290,319 $ 133,939 S 133,214 S 6,363 $ 6,390 S 290,319 S 290,119 S 134,139 S 141,183 S 31338 S 7,172 S 204,061 S 431,711 21,094 107,108 $ 134,138 S 141,183 S 3,338 $ 7,172 S 225,155 S 532,819 _S (10). S_ (7,%s) S 3,02.4 S (782) S 65,164 S (248,500) S (199) S (7,969) S 3,025 $ (782) S 65,164 S (248,540) S 14,158 S 4,207 $ 25.LZ57 S 13,959 S 7,232 S 316,421 77 REVENI,JES: 310000 Total taxes 363000 Total assessments 320000 Total licenses/permits 330000 Total intergovernmental 340000 Total charges for services 360000 Total miscellaneous 370000 Total investments TOTAL REVENUES EXPENDITURES: 410M Total general government 420000 Total public safety 430000 Total public works 460000 Total culture & recreation 470000 Total community development 490tN10 Total debt service 51000 Total miscellaneous 900 Capital Outlay TOTAL EXPENDITURES Excess revenue over (under) expenditures 380000 Other financing; sources (uses): 382014 Sale of land 381070 Proceeds of loan 383000 Operating; transfers in 521000 Operating transfers (oat) Excess revenues and other sources over (under) expenditures and other uses Fund Balance July 1, 2002 Prior Period Adj Fund Balance dune 30, 2003 See Accompanying Notes to Financial Statements City of Kalispell, Montana Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30, 2003 2$00 2600 Street Maintenance Urban F Budget after Actual Trausters Actual S 522,629 S 526,650 99,298 S 300 S 2,009 0 1,280 orestry Budget after Transfers 2825 MACI Grant Budget after Actual Traurfers 101,540 0 $ 0 S 526,000 0 S 52038 S S26,650 x 100,878 S 101,546 S 0 S 526.004 S 380,469 S 456,437 S 114,492 S 114,516 31,827 77,460 101,301 171,000 S 8,033 S 573.630 x $13,697 x 704,897 S 114,492 S 114,516 $ 8,033 $ $73,630 S 11,041 S (173,247) S (13,614) S t12,976) S (9,033) S (47,636) S 99,39i1 S 161,000 S 110,431 S 17,247 S 13,614) S (12,976) $ 033) S (47,630) S 231,444 S 51,947 $ 76,516 S 341,875 S 38,333 S 68,483 78 REVENUES: 310000 Total taxes 3630M Total assessments 320000 Total licenseslpermits 330000 Total intergovernmental 340000 Total charges for services 36Q000 Total miscellaneous 370M Total investments TOTAL REVENUES EXPENDITURES: 410000 Total general government 420000 Total public safety 430000 Total public works 460000 Total culture & recreation 470000 Total community development 490000 Total debt service 51OW Total miscellaneous 900 Capital Outlay TOTAL EXPENDITURES Excess revenue over (under) expenditures 380M Other financing sources (uses): 382014 Sale of land 381070 Proceeds of loan 383000 Operating transfers in 521000 operating transfers (out) Excess revenues and other sources over (under) expenditures and other uses Fund Balance duly 1, 2002 Prior Period Adj Fund Balance June 30, 2003 See Accompanying Notes to Financial statements City of Kalispell, Montana Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 2882 2885 2914 Courtyard Apartments UDAG Misc. Police Resource Budget after Budget After Budget after Actual Transfers Actual Transfers Actual Transfers S 9,621 S 26,845 S 37,500 $ 37,500 $ $9,797 $ 60,000 998 0 S 0,795 S 60,000 S 9,621 S 26,845 S 37,500 S 37,500 S 57,192 S $8,070 5 39,194 S 45,000 S 9,62.1 S 26,845 24,174 27,291 S 63,368 S 72,291 S 9,621 S 16,945 $ 57,192 $ 58,070 S (2,573) S (12,291) S 0 $ 0 $ (19,692) $ (20,570) S 11,880 S 11.880 S (21573) S 12,291) $ 0 S 0 $ ('71912) $ (9,690) S 45,191 9 0 S 9,608 S 42,618 8 0 S t,796 79 REVENUES: 3100M Total taws 363000 Total assessments 3200M Total licenses/permits 330000 Total intergovernmental 340M Total charges for services 360000 Total miscellaneous 370000 Total investments TOTAL REVENUES EXPENDITURES: 410000 Total general government 420000 Total public safety 430000 Total public works 460000 Total culture & recreation 470000 Total community development 490000 Total debt service 510000 Total miscellaneous 900 Capital Outlay TOTAL EXPENDITURES Excess revenue over (under) expenditures 380000 Other financing sources (uses): 382014 Sale of land 381070 Proceeds of loan 383000 Operating transfers in 521000 Operating transfers (out) Excess revenues and other sources over (under) expenditures and other uses Fund Balance July 1, 2002 Prior Period Ad..l Fund Balance June 30, 2003 See Accompanying Notes to Financial Statements City of Kalispell, Montana Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 2915 2916 2919 PaHm Resoarco (2) Drag Enforcement Grant COPS Grant Budgetaiter Budget after Budget after Actual Transfers Aetual Transfers Actual Transform S 47,714 S 48,142 S 355,676 S 36,183 S 28,654 S 33,655 62 S 47,714 5 48142 S 35,676 $ 36,133 S 29,716 S 33655 $ 47,714 $ 40,142 S 55,050 S 60,570 $ 29,827 S 181655 16,500 S 47,714 $ 48,141 S 55,050 S 60,578 $ 29,827 S 35,155 S 0 S 0 S {19,374) S (24,395) S (11111) S (11500 S 24,395 $ 24,395 S 1,1.11 5 I,500 $ 0$ 0 S 5,021 S 0 S 0 S 0 $ 0 S 0 $ 0 S 0 S 5,021 S 0 80 REVENUES: 310000 Total taxes 30000 Total assessments 320000 Total licenses/permits 330000 Total intergovernmental 34000 Total charges for services 360000 Total miscellaneous 370000 Total investments TOTAL REVENUES EXPENDITURES: 410000 Total general government 420000 Total public safety 430000 Total public works 460000 T0141 culture & recreation 470000 Total community development 490000 Total debt service 510000 Total miscellaneous 900 Capital Outlay TOTAL EXPENDITURES Excess revenue over (under) expenditures 380000 Other financing sources (uses): 382014 Sale of land 381070 Proceeds of loan 383000 Operating transfers in 521000 Operating transfers (out) Excess revenues and other sources over (under) expenditures and other uses Fund Valance duly 1, 2002 Prior Period Adl Fund Balance June 30, 2003 See Accompanying Notes to Financial Statements City of Kalispell, Montano Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended .tune 30, 2003 2927 2940 MT. Cultural Arty Grant Ind Avenue West Grant Budget after Budget after Actual Transfers Actual Transfers 2957 FE111A Grant Budget after Actual Transfers S 22,150 S 17,500 S 559,690 S 639,837 S 26,695 S 160,000 2,850 12,250 S 22,150 $ 17,500 S 559,690 S 639,837 S 29,535 $ 172,250 S 22,150 s 22,900 S 561,433 S 639,834 S 30,253 S 114,652 0 55,349 S 22,150 S 22,900 S 561,433 S 619,834 S 30,253 S 170,000 S 0 S (5,400) S (1,7C3 s 3 S (71:9 S I,250 S 11,270 S 11,270 S 0$ (5,4t10) S (1,743) S 3 S 10,552 S 13,520 $ 0 s 1,743 S 0 S 0 $ 0 S 10„552 81 REVENUES: 310M Total taxes 363000 Total assessments 320M Total licenses/permits 330ti00 Total intergovernmental 340000 Total charges for services 360000 Total miscellaneous 310000 Total Investments TOTAL REVENUES EXPENDITURES: 410000 Total general government 420000 Total public safety 430000 Total public worsts 460000 Total culture & recreation 470000 Total community development 490000 Total debt service 510M Total miscellaneous 900 Capital Outlay TOTAL EXPENDITURES Excess revenue over (under) expenditures 3800110 Other financing sources (uses): 382014 Sale of land 381070 Proceeds of loan 383(W Operating transfers in 521000 Operating transfers (out) Excess revenues and other sources over (under) expenditures and other uses Fund Balance July 1, 2002 Prior Period Ad,j Fund Balance ,Tune 30, 2003 See Accompanying Notes to Financial Statements City of Kalispell, Montana Nonmajor Special Revenue Funds Combining; Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 2975 TOTAL ISTEA Spe gal Revenue Funds 8udgetafter Budget After Act" Transfers Actual Transfers 5 1,44075 S 1,459,366 S 762,229 S 767,794 S 360,853 S 254,550 S 1 S 164,502 S 1,233,472 3 2,170,499 S 88,558 $ 138,171 S 63,720 S 72,250 S 19,656 S 2510" S 1 S 164,502 S 31950.50 S 4,887,620 S 144,325 S 164,754 S 11284,533 S 1,387,240 S 868,551 $ 11230,672 S 238,946 S 239,598 S 617,039 S 718,470 $ 58,251 S 110,251 S 259,183 S 334,750 S 18410" 5 1,393,361 $ 0 S 0 S 3,654,918 S 5,569,096 $ 1 $ 164,502 $ 29$,645 S (681,476) S 0 S 459,520 S 99,390 S 161,000 S 12,624 S 34,023 S 61,280 S 83,068 $ (34,013) S 12,625 S 198,525 S 443,691 S (11,911) $ (12,625) $ 2,9%,185 S 2,150 S 0 S 3,442,026 82 City of Kalispell, Montano Combining Balance Sbeet Noum4or Debt Service Funds June30,2003 30I0 3188 3500 3594 3595 3596 3597 3598 G.O. BOND WF,STSIDE TIF SIB REVOLVING 1"4 8 & C 1995 S & C 1996 S & C 1"7 S & C 1998 S & C SERINS 2002 SBRIE.S 20H ASSETS: 010100 Casldlnvestments S 65,89 S 327,811 $ 70,488 $ 112 Total for combined slatemelat 9 (65,897) S 327,811 S 70,488 S - $ (112) $ S - $ - 011300 Taxes receivable, heal estate S 14,627 S 32,764 011500 Taws receivable - personal property 14,744 9,531 011800 Special Assessments, receivable S 354 5 3,463 S 31175 $ 2,616 $ 843 Rent receivable 266,767 Total for eamblued statement S 29,371 S 309,067 S 0 S 354 $ 3,463 S 3,175 S 2,616 S 843 012000 Due front sidewalk & curb fiends S 2,4$2 0130(0 clue from odwrslgovermnents S 37,000 S 29,446 S 562 S 410 S 153 $ 299 014100 Prepaid expenditures TOTAL ASSETS $ 474 S 666,324 $ 72,9411 S 916 S 3,761 S 3 28 S 2,905 S 843 LIABILITIES: 020200 Accounts payable 021200 Due To (Retainage, de.) 021134 Due To SID Revolving Fund $ 1,545 S 261 $ 646 020600 Accrued payable Total for combined statement S 0$ 1) S 8$ 11545 $ 0 S 261 S 646 S 0 022300 Deferred revenue - loss receivable 022310 Doferred revenue - real & protest luxes S 14,627 S 32,769 022320 Deferred revenue - personal property tries 14,744 9,531 022330 Referred revenue- special assessments S 354 S 3,463 S 3,175 S 2.616 S 843 Total for combined statement $ 29,371 $ 42,308 S 0 S 354 S 3,463 S 3,17S S 2,616 $ 843 TOTAL LIABILITIES S 29,171 S 42,300 S 0 S IAMI S 3,463 S 3,436 S 3,262 S 843 FUND BALANCES Resomed Fund Balance (28,897) 624,024 72,940 (983) 298 (108) (357) 027100 Unreserved Fund Balance Total Equity $ 23,89 S 624,024 S 72,940 S 983 S 298 S IUS $ 357) S - TOTAL LIABILITIES AND FUND EQUITY S 474 S 666,324 S 72,940 S 916 S 3,761 S 3,328 S 2,905 S $43 See Aeoompmog Notes to Finamial StateraWs L�7 ASSETS: 010100 Cashflnvestmwmts Total for combined statement 011300 Taxes receivable - real estate 011500 Taxes receivable - personal property 011800 Special Assmsmonts receivable Rent receivable Total for combined stateament 012009 Due frwn sldewalk & curb funds 013000 Due from olh"m1govertmnettls 014100 Prepaid expenditures TOTAL ASSETS LIABILITIES: 020200 Accounts payable 021200 Due To (Retsimage, etc.) 021134 Due To SID Revolving Fund 02000 Accrued payable Total for combined statement City of Kalispell, Montana Combining Balance Sheet Nomm4jor Debt Service Funds ,tune 30, 2003 3599 36N 360t 3602 3641 3642 TOTAL OF ALL 1"9 S & C 2400 S& C 2001 S&C 2002 S&C $Ill i4l $10342 DEBT SERVICE FUNDS S $1105 S 29,.146 S 366,541 S - S S - S - S 5,105 S 29,146 S 366„941 $ 47,396 24,275 S 2,975 S 1,737 S 1,858 S 13,364 $ 41,853 S 49,971 12t,2" 266,767 S 2,875 S 1,737 S 1,058 S 13,364 S 41,853 S 49,671 $ 459,647 $ 2,452 S 701 68,561 $ 2875 S 1,737 S 11059 $ 13,364 S 47659 3 79,01-7 S 897,201 S 2,452 $ 0$ 0 S 0 S 0 S 0 S 0 S 2,452 022300 Deferred revenue- loans receivable 022310 Deferred revenue - real & protest taxes S 47,396 022320 Deferred revenue - personal property taxes 24,275 022330 Deferred revenue - spectalassessments $ 2,875 S 1,737 S 1,058 S 13,364 S 41853 1 49871 i21,209 Total for combined statement S 2,875 S 1,737 S 1,058 $ 13,364 $ 41,853 S 49,871 S 192,880 TOTAL LIABILITIES 1 2,875. S 1,737 5 1,058 S 13,364 S 41853 S 49,871 S 195,332 FUND BALANCE$ Reserved Fund Balance 51806 29,146 701,869 027100 Unreserved Fund Balance Total Equity $ - $ - 1 - S - S U06 S 29,146 S 701,369 TOTAL LIABILITIES AND FUND EQUITY S 2,875 $ 1,737 S 7 058 S 73,364 S 47,659 S 111, 1 79,017 S 897,201 See Accompanying Notes to Financial Statements 84 REVENUE: 310000 Total taxes 363000 TaxeslAssessments 330000 Total Intergovernmental 340000 Total charges for services 361000 Total Rent 370000 Total Investment TOTAL, REVENUE EXPENDITURES: 490300 S.I.D. bond principal S.L.D. bond interest S,I.D, bond agent fees 490000 TOTAL debt service Excess revenues over (under) expenditures Fund Balance July 1, 2002 Residual equity transfers Fund Balance June 30, 2003 See Accompanying Notes to Financial Statements City of Kalispell, Montana Nonmajor Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 3010 3188 G.O. BOND -POOL WES'TSIDE TIF SERM 2002 SERIES 2000 BUDGET AFTER BUDGET AFTER ACTUAL TRANSFERS ACTUAL TRANSFERS 3500 SID REVOLVING FUND BUDGET AFTER ACTUAL TRANSFERS Tot $ 256,481 $ 285,806 $ 211,892 $ 216,500 U01 0 3,Sat1 $ 818 S 0 C89 166,368 167,609 U20 20,275 434182 266,767 428 0 55,t91 53,789 1,346 0 S 256,909 $ 285,806 $ 720,493 S 430,791 $ 2,164 S 0 NE $ 80,000 $ 80,000 S 711,282 $ 211,292 189 205,556 205,556 128,068 128,068 250 250 $ 285,806 S 285,806 S 339,350 $ 339,350 S 0 S 0 $ (281897) S 0 S 0 85 $ 381,143 S 91,441 S 2,164 S 0 S 242,881 $ 101,980 (31,204) $ 624,024 S 72,940 REVENUE: 3POO Total taxes 363000 TaxesiA$sesslnents 330000 Total intergovernmental 340000 Total charges for services 361000 Total Rent 370000 Total investment TOTAL REVENUE EXPENDITURES: 490300 S.I.D. bond principal SID. bond interest S.I.B. bond agent fees 490000 TOTAL debt service Excess revenues over (under) expenditures Fund Balance July 1, 2002 Residual equity transfers Fund Balance June 30, 2003 See Aocompanyrng Notes to Financial Statements City of Kalispell, Montana Nonmajor Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 3592 3593 1992 SIDEWALK& CURB 1993 SIDEWALK & CURB BUDGET AFTER BUDGET AFTER ACTUAL TRANSFERS ACTUAL TRANSFERS 3594 1994 SIDEWALK & CURB BUDGET AFTER ACTUAL 'TRANSFERS $ 72 S 0 $ 3,349 $ 3,749 72 S 0 S $ 0 S 0 $ 3,349 S 3,749 $ 3,500 S 3,500 149 149 0 100 $ 0 S 0 $ 0 $ 0 $ 3,649 S 3,749 $ 0 $ 0 S 72 $ 0 $ (300) $ 0 $ (272) $ (11) S (683) 272 $ 0 86 S (983) REVENUE: 310000 Total taxes 363000 TaxeslAssessments 330000 Total intergovernmental 340000 Total charges for services 361000 Total Rent 370000 Total investment TOTAL REVENUE EXPENDITURES: 490300 S.1M, bond principal S.M bond Interest S.I.D. bond agent fees 490000 TOTAL debt service Excess revenues over (under) expenditures Fund Balance July 1, 2002 Residual equity transfers Fund Balance June 30, 2003 See Accompanying Notes to Financial Statements City of Kalispell, Montana 1Nanmajor Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 3595 3596 3597 1995 SIDEWALK & CURB 1996 SIDEWALK & CURB 1997 SIDEWAIX & CURB BUDGET AFTER BUDGET AFTER BUDGET AFTER ACTUAL TRANSFERS ACTUAL TRANSFERS ACTUAL TRANSFERS S 21768 S 3,294 $ 1,745 S 1,982 $ 1,169 S 1,445 S 2,768 S 3,294 $ 1,745 S 1,982 S 1,169 S 1,445 S 2,892 S 2,852 S 1,519 $ 1,518 $ 11072 S 1,072 342 342 364 364 273 273 0 100 0 100 0 t00 $ 3,194 S 3294 7I,883 S 1,982 S 045 S 1,445 S (426) S 0 $ (138) $ 0 S (176) S 0 $ 724 S 30 $ (181) $ 298 87 S (108) S (357) REVENUE; 310000 Total taxes 363000 TaxeslAsmssments 330000 Total Intergovernmental 340000 Total charges for services 361000 Total Rent 370000 Total investment TOTAL REVENUE EXPENDITURES: 490300 S.LD. band principal S.I.D. bond Interest S.I.U. bond agent fees 490000 TOTAL debt service Excess revenues over (under) expenditures Fund Balance July 1, 2M Residual equity transfers Fund Balance June 30, 2003 See Accompanying Notes to Financial Statements City of Kalispell, Montana Nonmajor Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 3598 3599 3600 1998 SIDEWALK & CURB 1999 SIDEWALK & CURB 2000 SIDEWALK & CURB BUDGET AFTER BUDGET AVrER BUDGET AFTER ACTUAL TRANSFERS ACTUAL TRANSFERS ACTUAL TRANSFERS $ 293 S 393 $ 334 5 434 S 482 S 582 $ 293 S 393 $ 334 S 434 $ 482 S 582 $ 211 S 211 S 221 $ 221 S 289 S 289 82 140 113 113 193 193 S 4112 S 482 S 334 S 334 $ 293 5 351 S $ 0 S 100 $ 0 S 42 0 S 10o $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 88 REVENUE: 310000 'rote] taxes 363000 Taxes/Assessments 330 NO Total intergovernmental 340000 Total charges for services 361000 Total Rent 370000 Total Investment TOTAL REVENUE EXPENDITURES: 490300 S.I.D. hand principal S.LD. bond Interest SAD, bond agent fees 490000 TOTAL debt service Excess revenues aver (under) expenditures Fund Balance July 1, 2002 Residual equity transfers Fund Balance June 30, 2003 See Accompanying Notes to Financial Statements City of Kalispell, Montana Nonmajor Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 3601 3637 3641 2001 SIDEWALK & CURB SID 337 SID 341 BUDGET AFTER BUDGET AFTER BUDGET AFTER ACTUAL TRANSFER ACTUAL TRANSFERS ACTUAL TRANSFERS $ 242 S 342 $ 12,506 S 18,095 S 242 $ 342 $ 0 S 0 S 12,506 S 18,095 S t51 $ 151 S 10,000 $ 15,000 91 41 2,995 21995 0 100 $ 242 S 242 S 0 S 0 S 12,995 $ 18,095 S 0 S 100 S 0$ 0 S (489) $ 0 S 0 S (12,847) S 6,295 12,547 S 0 S 0 S 5,806 REVENUE: 310000 Total taxes 363000 Taus/Assessments 330000 Total Intergovernmental 340000 Total charges for services 361000 Total Rent 370000 Total investment TOTAL RMNUE EXPENDITURES: 490300 S.I.L. bond principal S.I.L. bond interest S.I.D. bond agent fees 490000 TOTAL debt service Excess revenues over (under) expenditures Fund Balance July 1, 2002 Residual equity transfers Fund Balance June 30, 2003 See Accompanying Notes to Financial Statements City of Kalispell, Montana Nonmajor Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended .Tune 30, 2003 3642 SID 342 BUDGET AFTER ACTUAL TRANSFERS $ 37,318 S 36,160 $ 37,318 $ 36,160 $ 15,000 S 5,603 100 30,000 6,060 100 S 20,703 S 36,160 $ 16,615 $ 0 $ 12,531 $ 29,146 901 'roTA1, DEBT SERVICE FUNDS BUIIGET AFTER ACTUAL TRANSFERS 468,373 S 502,306 $ 61,096 S 69,976 $ 166,368 S 167,609 $ 20,275 S 43,182 $ 266,767 $ S 56,965 S 53,799 S 1,039,844 S 836,862 $ 326,097 S 346,096 S 343,829 S 344,344 S 350 S 850 $ 670,276 S 691,290 $ 369,568 $ 145,572 S 350,447 S (18,146) S 701,869 City of Kalispell, Montana Balance Sheet Nonttltllor Debt Service Fund .Tune 30, 2003 FIRE STATION ASSETS: CON$T 010100 easbRnvestments S 104,214 Total for conibiued statement S 104,214 011300 'Taxes receivable - realcows 011500 Taxes receivable - personal property 011800 Special Assessments receivable Rent recelvable Total for cmubbced statement 012000 Due from sidewalk & curb funds 013000 Due from olhersfgovernmems 014100 Prepaid expenditures TOTAL ASSETS B 104,214 LIABILITIES: 020200 Accounts payable 021200 Due To (Retalnage, etc.) 021134 Due To SID Revolving Fund 020600 Accrued payable Total for combined statement 022300 Dderred revenue- bans receivable 022310 Deferred revenue - real & protest taxes 022320 Deferred revenue - personal property taxes 022330 Deferred revenue - spedal assessumnts Total for combined statement TOTAL LIABILITIES FUND BALANCES Reserved Fund Balance 027100 Unreserved Fund Balance 104214 Total Equity S 104,214 TOTAL LIABILITIES AND FUND EQUITY S 104,214 See Accompa*ng Notes to Financial Statements 91 REVENUES: 365020 Contributions 370000 Total Investments TOTAL REVENUES EXPENDITURES: 430200 Contract Servlces-Public Works 430200 Capital Improvements -Public Works 460400 Capital Improvements -Recreation TOTAL EXPENDITURES Revenues over(tinder)expenditures Other financing sources (uses): 381004 Bond Proceeds Transfers In (Out) Revenue and other financing sources ever (under) expenditures and other financing uses Fund Balance July 1, 2002 Transfer of Equity Fund Balance June 30, 2003 See Accompanying Notes to Financial Statements City of Kalispell, 'Montana Nonmajor Capital Project Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 4150 BUDGET FIRE STATION AFTER CONST TRANSFERS $ 50,000 164 $ 50,164 $ 0 4343 BUDGET SID 343 CONST AFTER TRANSFERS $ 0 S 0 $ 26,728 $ HUM $ 0 $ 0 $ 26,728 $ 115,584 $ 50,164 $ 0 $ (26,728) $ (115,584) $ 54,050 S 54,050 $ 104,214 $ 54,050 $ (26,728) $ (115,584) $ 0 $ 104,214 92 $ 115,583 (88,855) $ 0 REVENUES: 365020 Contributions 370000 Total investments TOTAL REVENUES EXPENDITURES: 430200 Contract Services -Public Works 00200 Capital Improvements -Public Works 460400 Capital improvements -Recreation TOTAL EXPENDITURES Revenues over (under) expenditures. Other financing sources (uses): 381004 Bond Proceeds Transfers In (Out) Revenue and other financing sources over (under) expenditures and other financing uses Fund Balance July 1, 2002 Transfer of Equity Fund Balance June 30, 2003 Sae Accompanying Notes to Financial Statements City of Kalispell, Montana Nonmajor Capital Project Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 4290 BUDGET 2000 Walk & Curb AFTER Construction TRANSFERS TOTAL BUDGET ACTUAL. AFTER TRANSFERS $ 50,000 $ 164 $ - $ 0 $ 0 $ $0,164 $ - $ 12,711 $ 25,000 $ 12,711 $ 25,000 $ 26,728 $ 115,584 $ 12,71.1 $ 25,000 S 39,439 $ 140,584 $ (12,711) $ (25,000) $ 10,725 $ (140,584) $ t3,364 $ 25,000 $ 13,364 $ 25,000 $ 54,050 $ 54,050 $ 653 $ 0 $ 78,139 $ (61,534) $ (653) $ 114,930 (88,8S5) $ 0 $ 104,214 93 City of Kalispell, Montana Internal Service Funds Combining Statement of Net Assets June 30, 2003 6030 6050 DATA EMPLOYEE ASSETS PROCESSING HEALTH FUND TOTAL Current Assets: 10100 Cash - unrestricted S 66,179 S 25,825 $ 92,004 10120 Cash - Replacement 32,687 32,687 Total Cash S 98,966 S 25,825 S 124,691 t8600 Machinery & equipment S 31)8,204 S 0 S 308,204 18700 less Accumulated Depreciation $ (234,540) S 0 S 234,540 Net Property & Equipment $ 73,664 S 0 S 73 664 TOTAL ASSETS $ 172 530 S 25,825 $ 198 55 LiABIISTIE5 Current Liabilities: 20200 Accounts Payable S 3,877 $ 3,877 20820 Est, liability far cialms $ t24,519 124 519 Subtotal current liabilities S 3,877 S 124,519 S 128,396 TOTAL LIABII ITES S 3,877 S 124,519 S 128 % NET ASSETS Invested in capital assets $ 73,664 Unrestricted 94,989 S 98,694 3,705 Total Net Assets $ 168,653 $ 98,694 $ 69,959 See Accompanying Notes to Financial Statements 94 City of Kalispell, Montana Internal Service Funds Combining Statement of Revenue, Expenses, and Changes in Fund Net Assets For the Year Ended June 30, 2003 OPERATING REVENUES 383000 Internal services 360000 Misc. TOTAL OPERATING REVENUES OPERATING EXPENSES 200 Supplies 300 Purchased Services 500 Fixed chgs.iAdmin transf. 830 Depreciation TOTAL OPERATING EXPENSES Operating Income NON -OPERATING REV.(F P). 371010 Interest Revenue Total non -operating revenae(exp) CHANGE IN NET ASSETS 27200 TOTAL NET ASSETS - BEGINNING TOTAL, NET ASSETS - ENDING See Accomparyng Notes to Flnandai &WfeTents 1 DATA FM7'1.OYEE PROCESSING HEALTH TOTAL, FUND YUND FUNDS $ 68,053 $ 1,499,716 S 1,567,769 1,005 1,005 S 69,058 S 1,499,716 S 1,568,774 $ 1t,717 S 11,717 27,346 S 1,594,115 1,621,461 22,694 22,694 42,145 42145 $ 103,902 S 1 94 115 S 1:698,017 S (34,844) S (94,399) $ (129243) $ 1,762 $ 785 S 2,547 $ 1,762 $ 785 $ 2,547 S (33,082) $ (93,614) S (126,696) $ 201,735 S (5,080) $ 196,655 S 168,653 $ 98,694 $ 69,959 City of Kalispell, Montana Internal Service Funds Combining Statement of Cash Flows For the Year Ended .Tune 30, 2003 Cash flows from Operating Activities: Cash received from Internal Services Cash payments to suppliers Net cash provided by operating activities Cash flows from Capital and related financing activites: Due to General Fund Acquisition ofcapital assets Net cash used for capital and related financing activates Cash flows from investing activities: Interest on Investments Net cash used in investing activities Net increase in cash & cash equivalents Cash & cash equivalents at July 1, 2002 Cash & cash equivalents at June 30, 2003 Reconciliation of operating Income to net cash provided by operating activities: Operating Income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Change in assets & liabilities: DX17A PROCESSING EMPLOYEE ilk P LT13 FUND TOTAL $ 69,058 $ 1,499,716 S 1,568,774 _ ,1t2) (1,510,284) $ __- -_ 3,946 S „(1,575,396) (10,568) $ 6 62M) $ (34,468) (34,469) S 34,468 $ 6,55 S 41025 $ 1,762 $ 785 S 2 547 S 1,762 $ 785 $ 2,547 S (29,760) S (16,340) S (4.5,100) S 127,626 $ 42,165 S 169,791 $ 98,866 S 25,825 S 124,691 $ (34,844) S (94,399) S (129,243) $ 42,145 S 42,145 Increase in Accounts payable (3,355) (3,355) Decrease In Estmated Liability $ 83,831 83,831 Total Adjustments S 38,790 $ 83,831 S 122,621 Net cash provided by operating activities S 3,946 S (10,568) S (6,622)_ Disclosure of accounting polky: For purposes of the Statement. of Cash Flows, the Internal Service Funds conilder as highly liquid investments ilucluding restileted assets) with a maturity of three mouths or less when purchased to be cash equivalents. See Accomparl ng Nags to Financial Stateti e& f 96 Pectoral (sratttorlPass-T]trouglt CsrantWProea'atn Title U.S. Department of Hnusing and Urban Development Passed thm the State Dept. afCommerce Community Development Black Grant (2) Community Development Bloc], Chant (1) Total U. S. Department of Housing and Urban Development U. S. Department of Transportation Direct Federal Aviation Administration Project Pasted Aru the State Department ofTrunspartntion Community Transpottation Enhancement Progcnm(CTLT) Con nturuty Transportation Enhancement Program(CTEP) Highway Traffic Safety -Kalispell Occupant Protection Highway Traffic Safety -Kalispell Occupant Protection Total U. S. Department of Transportation U. S. Department of Justice Direei: Community Oriented Policing Semoes-in School Award Comnutury Oriented Policing Services-ln Schaal Award Universal Grant Community Oriented Poking Services - Block Grant Passed through Flathead Co" Drug Control and Systems Gnmt - Formula Chant Total U. S. Department of JnstIce federal Emer¢encv Manauement Agenev Direct FEMA Chant Fannie Mae Direct Fannie Mae Grant Department of Environmental Ouality Direct DEQ Grant Total Federal Assistance Flathead County, Montana SCHEDULF. OF EXPENDITURF4 OF FEDERAL AWARDS For Fiscal Year Ended June 30, 2003 Ending Federal Pass -Through Award Begimung Bal Federal Other Expenditures Balance CFDA # Grantor's # Amount Revenue 30.1mr-03 S 428,000 $ 363,469 $ 366,196 $ (2,727) 14,228 MT-CDBG-OIHR-02 $ Mfl0 i, Hl0 $ 1,743 $ 1%,222 $ 182,009 $ IS 956 $ ... 928,000 $ ._, ... 1,743 $ SS9,69i $ 548,205 5 13,229 20.106 D0T-FA01NM-2Wi $ 126,000 $ 34,531 $ 34,531 23.265 STPE6799(15) $167,140,00. $ (46,975) $6,827.00 $ - $ (30.148) 20.205 STPE6799(23) $98,26000 $ (1,401) $ - $ (1,401) 20.6DO 0I-O3-t17-03 $ 20,000 $ 8,245 $ 8,245 20,600 (12-03-07-06 $ 7,0U0 $ � $ 1,579 S 1,579 $ $ 4 88,4iO $ (18,376) 51 $ 44,355 $ (31,549) 16.710 1999SHWXOW $ 125,OW 9608 493E0 $ 57,192 $ 1,796 16,710 2001SFFKX0464 S 125,OM $ 47,714 $ 41,714 16.710 19990MWX2840 $ 150,000 $ 28,654 62 $ 29,827 $ (1,111) 16.579 N/A N/A $ - $ 35,676 24395 $ 55 050 $ 5,_02l $ 00, 0WO $ _9�608 $ 112,044 $ 73V8 $ 189,793 $ 5,706 $ 26,685 14120 M53 $ 10,552 $ 1,25U 1250 $ 5 649 5649 (27,025) 756,501 87,957 819,495 (2,062) 97 CITY OF KALISPELL FINANCE DIRECTOR SUMMARY OF DAILY BUSINESS AND CASH RECONCILEMENT AT THE CLOSE OF BUSINESS June 30,2003 BEGINNING BALANCE: Gers:ralReceipts $ 61,699,09 GENERAL. Water Receipts $ 5,976.17 WATER Ambulance Receipts $ 1,794.15 AMBULANCE SUB TOTAL: $ Ober Receipts Other Receipts $ 20,200.49 STIR INTEREST -CITY Other Receipts $ 692.46 STIR INTEREST-UDAG Other Receipts DIRECT DEPOSIT - ST. MT. DEPT, ADh $ 65,656,00 CDBG HOME PROG.DRAW 2 Other Receipts $ 5743L$$ GENL AIC INTEREST Other Receipts S 20.12 COURTYARD RES. INTEREST $ (4,994.00) COURTYARD RES. DEPOSITS SUB TOTAL: $ Other Receipts Direct Deposit $ 12.25 O'NEIL LOT Other Receipts Direct Deposit $ 300.99 ED TRIPPET LOT Other Receipts Direct Deposit $ 81,36 CITY HALL Other Receipts Direct Deposit $ 646.50 VALLEY BANK Other Receipts Direct Deposit $ 0,75 SKYLINE Omer Reaelpts Direct Deposit $ 628,15 EAGLES Other Receipts Omer Receipts Other Receipts Other Receipts Omer Receipts Other Receipts Other Receipts Omer Receipts Other Receipts Other Receipts Other Receipts Other Receipts Omer Receipts Other Receipts Omer Receipts Other Receipts Orirer Receipts Omer Receipts TOTAL ALL NECEIPTS SUBTOTAL: $ Direct Deposit $ 853.50 POOL JUNE 26, 2003 Direct Deposit $ 934.00 POOL JUNE 27, 2003 Direct Deposit $ 741.10 POOL JUNE 28, 2003 Direct Deposit $ 416.9!5 POOL JUNE 29, 2003 Direct Deposit $ 1,297.75 POOL JUNE 30, 2003 SUBTOTAL: $ $ 400.00 BARLEY;$ $ 400,00 THE KNEAD $ 300.00 MiNI MIKE'SIMERIDIAN EXPRESS S 541.67 GOLD DUST CASINO $ 250.00 TAMSRAPETERSON»JUNEPMT SUB TOTAL: $ Hydrant Meter Deposit - In Vault $ 550.00 REB LLC $ 85,423.49 STREAM PAYMENT $ 110.00 RANKING COMM-FINE $ SUB TOTAL', $ Loins B. Ruiz Jr: Jw1e - cW 3460 $ 388.48 HEALTH -Direct Deposit Louis & Ruzz Jr: Jt4'y- OW 3461 $ 565.86 HEALTH -Direct Deposit SUB TOTAL: $ )se Behrens - Jrdy - Direct Deposit $ 380,86 HEALTH -Direct Deposit SUBTOTAL; $ $ 21,224,059.90 69,409,41 82,051.92 1,679.00 4,243.30 1,891.67 86,083.49 954.34 380.86 S 246,684,99 98 CITY OF KALISPELL FINANCE DIRECTOR SUMMARY OF DAILY BUSINESS AND CASH RECONCILEMENT AT THE CLOSE OF BUSINESS June 30, 2003 LESS DISBURSEMENTS: Other WIRE TRANSFER $ 11,497.60 SID 341 Other WIRE TRANSFER $ 17,801.25 SID 342 Other WIRE TRANSFER $ 109,867.50 SID343 Other WIRE TRANSFER $ 325,971,25 SWR SYS REV. SERIES 2002 Other WIRE TRANSFER $ 164,662,50 G.O. BOND SERIES 2002 Other WIRE TRANSFER $ 28,420.00 ONCR- WRF 01032 WATER BONDS Other WIRE TRANSFER S 142,620DO ONCR SRF LOAN WWTP Other WIRE TRANSFER $ 84 B98 75 WTR SYS REV 811 96 Other O her MT BRD INV_ TOOK MONEY OUT OF A1C $ 169,675�00 ST8EAM LOAN -MT.BRD.INV. SUB TOTAL: $ REDEEM S&C BONDS S 3,462.63 1995,'96,'97,'98,'99, 2W0, 2001 SUBTOTAL: $ NSF COURT $ 185.00 DANIEL J. DEVINE BANKCHGS NSF COURT $ 3.00 DANIEL J. DEVINE SUBTOTAL: $ 1055.603.75 3A62.63 188.00 Other $ 437,31 GENT. A/C SERVICE CHARGES Other $ 62,00 POOL "SERVICECHAGES TOTAL DISBURSEMENTS: SUB TOTAL', $ 519.31 BALANCE ACCOUNTED FOR, DEMAND DEPOSITS: Cash in Transit (Glacier Bank) Checldng #3583 Gel A/C (Gacier Bank) Checidng #3591 Heath AFC (Glacier Bank) City Health Fund-STIP STIP Program Swinmling Pool # 2650 (Glacler Bank) BIDDERS BONDS SUB -TOTAL DEMAND DEPOSITS, INVESTMENTS: Glacier Banc Int. Subtly (Rehab 2880 Glacier Bank Courtyard Reserve Account Giaeler Bards Courtyard Reserve AccountEquity Glecler Bank Courtyard Reserve AccountlEquity STOP ProgranVUDAG OTHER INVESTMENTS, Smwer 1995 S & C Sewer 1996 S & C Sewer 1997 S & C Sewer 1998 S & C Sewer 1999 S & C Sewer 2000 S & C Sewer2001 S&C Sew 2002 S&C TOTALS&C TOTAL INVESTMENTS: PETTY CASH: TOTAL ACCOUNTED FOR: °k°A%%'A%%%%%%%%%%%%%°A%%%%%%%%%% $1,059,773.69 $ 20,407,971.20 %%%%%%%% -1,100,OEM).00 $219703,43+1,670,00-1,055,603,75+1,641.67+69,409.41+85,423.49-600 +110+250-188+f5556+576,83-431.31 $ 25,016.39 +954.34+380S6 $ 808.20 +27.11 +1.100,000,00 $ 19,424,315.68 +20,000.00+20,200.49.27,11 $ 25.856.75+853.50+934.00+741.10+416.95+1,297.75-82.00 $ 2,750roo +550.00 $ 584-06 $ 30,125.91 +20.12+888100 $ 10,097.00 .5887 Renter Dep. S 2,395.00 +5 $ b38,654.48-20,000.00+692.48 $ 2,852.00 $ 3,033.94-1,618-49 $ 2,143.24-1,071.62 $ 843,44-210.86 $ 1,105.60-221.12 $ 1,736.64-289.44 $ 1,057.70-151.10 $ 13,363.74 S 26,139.30 519,698,45O45 $ 707,995.75 $ 1.525.00 $ 20,407,971.20 99 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) 150.5 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: Police protection Fire Department, Ambulance Service and Building Inspection Parks & Recreation Community Development Public Works -Streets, Water, Sewer, Wastwater Treatment, Stom 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 $ 1.52 Sewer rate per 1,000 gallons $ 3.39 Irrigation per 1,000 gallons $ 0.95 Customer service costs $2.85 each per billing period. 100 104 6,440 (increase to $1.66 July 1, 2003) (increase to $3.48 July 1, 2003) (increase to $1,05 July 1, 2003) CITY OF KALSPELL, MONTANA General Revenues by Source Last Ten Fiscal Years (unaudited) Fiscal licenses lntergovern- Charges Fines and investment year Taxes and fees mental for services Forfeitures Earnings Miscellaneous Total 1994 $ 3,951,097 $ 452,247 $ 1,805,242 $ 1,011,487 $ 457,545 $ 505,820 $ 36,207 $ 8,219,645 1995 $ 4,081,118 $ 448,487 $ 2,31.1,357 $ 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 Component units were excluded to comply with GASB reporting requirements. 1998 investment earnings included repayment of the UDAG loan from Kalispell Center Mall. Sourec K FY1994-2003 data from the City's Comprehensive Amival Financial Report, Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental F'und'Fypes 101 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 1994 $ 1,286,735 $ 2,596,259 $ 1,151,440 $ 453,986 $ 760,999 $ 1,598,857 $ 375,889 $ 8,224,165 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 $ 1,838,574 $ 397,242 $ 8,827,406 1997 $ 1,125,218 $ 2,893,042 $ 1,725,300 $ 1998 $ 1,194,016 $ 2,940,163 $ 1,723,852 $ 1999 $ 1,208,880 $ 3,116,875 $ 1,501,822 $ 2000 $ 1,223,943 $ 3,342,321 $ 1,398,926 $ 510,819 $ 652,296 $ 1,328,286 $ 482,448 $ 8,717,409 589,984 $ 870,940 $ 3,682,896 $ 372,950 $ 11,374,801 660,359 $ 1,795,463 $ 2,829,146 $ 406,509 $ 11,519,054 723,360 $ 2,019,148 $ 4,370,624 $ 499,804 $ 13,578,132 2001 $ 1,253,352 $ 3,422,810 $ 11699,238 $ 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 Component units were excluded to comply with GASB reporting requirements. Sources: FY 1994.2003 data from the City's Comprehensive Annual Financial Report, Combined Statement of Revenues,, Expenditures and Changes in Fund Balames- All Governmental Fund Types 102 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, Yen Kalispell Levy 1 bevies College Levy Health MILLS 1994 107.000 44.060 74.310 131.65 13.190 76,788 4.150 451,148 1995 1.07.500 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 1.20.020 133.33 10.040 74.978 3.862 512,990 1999 111.160 6L720 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 Source: Montana Tax Foundation 103 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 CPl Taxable Value Tax Increment without increment 1 mill levied generated 1994 $ 502,149,391 14.8% 2,63% $ 22,387,706 $ 3,293,832 $ 19,093,874 $ 19,094 107.00 $ 2,043,058 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% 3A0% $ 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 -2.4%a 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 $21,351 129.42 $2,763,246 2003 $ 678,031,634 8.2%n 2,80% $ 24,412,901 $ 754,554 $ 23,658,347 $ 23,654 152.E $ 3,609,600 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. 104