4, Government-Wide Financial Statementsr-
ASSETS
Current assets:
Cash and investments
Taxes and assessments receivable, net
Accounts receivable - net
Notes and loans receivable
Contracts receivable
Due from other governments
Prepaid expenses
Inventories
Total current assets
Noncurrent assets
Restricted cash and investments
Deferred assessments recievable
Long term portion of loans receivable
Capital assets - land
Capital assets - construction in progress
Capital assets - depreciable, net
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities
Accounts payable
Accrued payroll
Retainage
Current portion of long-term liabilities
Current portion of long -tern capital liabilities
Current portion of compensated absences payable
Other current liabilities
Total current liabilities
Noncurrent liabilities
Deferred revenue -loans recievable
Noncurrent portion of long-term liabilities
Noncurrent portion of long-term capital liabilities
Noncurrent portion of compensated absences
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for capital projects
Restricted for debt service
Restricted for special projects
Restricted for other purposes
Unrestricted
Total net assets
Total liabilities and net assets
See accompanying Notes to the Financial Statements
City of Kalispell, Montana
Statement of Net Assets
June 30,2010
Governmental
Business -type
Downtown
Parldng
Activities
Activities
Total
BID
Commission
$ 6,891,866
$ 5,628,639
$ 12,520,505
$ 99,993
$ 53,743
1,410,780
125,250
1,536,030
7,159
549,218
425,500
974,718
11,544
83,859
-
83,859
39,308
-
39,308
843,508
372,468
1,215,976
18,750
105,979
1,654
107,633
1,100
96,902
96,902
$ 9,924,518
$ 6,650,413
$ 16,574,931
$ 125,902
$ 66,387
$ 896,518
$ 5,731,993
$ 6,628,511
$
$
3,846,174
-
3,846,174
2,061,483
-
2,061,483
2,552,209
1,699,194
4,251,403
309,514
123,210
432,724
87,571,191
78,077,976
165,649,167
26,744
$ 97,237,089
$ 85,632,373
$ 182,869,462
$ -
$ 26,744
$ 107,161,607
$ 92,282,786
$ 199,444,393
$ 125,902
$ 93,131
353,606
114,264
467,870
2,784
605
365,470
76,537
442,007
1,807
7,500
16,384
23,884
25,651
-
25,651
1,013,063
1,131,000
2,144,063
11,679
50,069
' 61,748
21,776
$ 1,776,969 $ 1,388,254 $ 3,165,223 $ 2,784 $ 24,188
1,060,743
1,060,743
717,923
-
717,923
11,737,166
18,410,000
30,147,166
1,046,006
270,180
1,316,186
3,501
$ 14,561,838
$ 18,680,180
$ 33,242,018
$
$ 3,501
$ 16,338,807
$ 20,068,434
$ 36,407,241
$ 2,784
$ 27,689
$ 77,682,685
$ 60,359,380
$ 138,042,065
$
$ 26,744
-
3,303,412
3,303,412
875,227
1,886,611
2,761, 838
6,311,640
328,970
6,640,610
-
213,000
213,000
5,953,248
6,122,979
12,076,227
123,118
38,698
$ 90,822,800
$ 72,214,352
$ 163,037,152
$ 123,118
$ 65,442
$ 107,161,607
$ 92,282,786
$ 199,444,393
$ 125,902
$ 93,131
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General Fund — this is the City's primary operating fund and accounts for the financial
operations of the City not accounted for in any other fund. Principal sources of revenue
are property taxes, state and local shared revenue, charges for services, and fines and
forfeitures. Principal expenditures are for public safety.
Community Development Loan Revolving Fund — this fund accounts for the lending and
repayment of monies loaned to businesses and individuals for approved community
development projects.
SID 344 Debt Service Fund — this fund accounts for the resources accumulated and
payments made for principal and interest on the bonds sold to finance the development of
the Old School Station Industrial and Technology Park.
City of Kalispell, Montana
Balance Sheet
Governmental Funds
June 30, 2010
Community
Other
Total
Development
Governmental
Governmental
General Fund
Loan Revolving
SID 344
Funds
Funds
ASSETS
Current assets:
Cash and investments
$
802,551
$ 254,796
S 47,236
$ 5,635,217
$ 6,739,800
Taxes and assessments receivable, net
384,581
-
394,958
631,241
1,410,780
Accounts receivable - net
42,623
-
-
506,595
549,218
Notes and loans receivable
1,726
37,345
-
44,788
83,859
Contracts receivable
39,308
-
-
-
39,308
Due from other funds
-
16,000
-
4,995
20,995
Due from other governments
76,393
-
-
767,115
843,508
Prepaid expenses
105,979
105,979
Total current assets
$
1,453,161
$ 308,141
$ 442,194
$ 7,589,951
$ 9,793,447
Noncurrent assets:
Restricted cash and investments
$
-
$ -
$ 226,000
$ 670,518
$ 896,518
Advances to other funds
-
16,000
-
-
16,000
Deferred assessments recievable
-
-
3,109,415
736,759
3,846,174
Long term portion of loans receivable
13,291
1,564,122
484,070
2,061,483
Total noncurrent assets
$
13,291
$ 1,580,122
$ 3,335,415
$ 1,891,347
$ 6,820,175
Total assets
$
1,466,452
$ 1,888,263
$ 3,777,609
$ 9,481,298
$ 16,613,622
LIABILITIES
Current liabilities:
Accounts payable
64,532
-
-
282,420
346,952
Accrued payroll
250,327
-
-
112,748
363,075
Retainage
-
-
-
7,500
7,500
Due to other funds
-
-
-
20,995
20,995
Deferred revenue -accounts recievable
-
-
-
501,942
501,942
Deferred revenue -assessments recievable
384,581
-
394,958
631,241
1,410,780
Deferred revenue -loans recievable
37,345
44,788
82,133
Total current liabilities
$
699,440
$ 37,345
$ 394,958
S 1,601,634
$ 2,733,377
Noncurrent liabilities:
Advances payable
-
-
-
16,000
16,000
Deferred revenue -loans recievable
-
1,564,122
-
484,070
2,048,192
Deferred revenue -assessments recievable
3,109,415
736,759
3,846,174
Total noncurrent liabilities
$
$ 1,564,122
$ 3,109,415
S 1,236,829
$ 5,910,366
Total liabilities
$
699440
$ 1,601,467
$ 3,504,373
$ 2,839,463
$ 8,643,743
FUND BALANCES
Reserved for advances
-
16,000
-
-
16,000
Reserved for debt service
-
-
273,236
601,991
875,227
Unreserved reported in general fund
767,012
-
-
-
767,012
Unreserved reported in special revenue funds
270,796
6,040,844
6,311,640
Total fund balance
S
767,012
$ 286,796
$ 273,236
$ 6,642,835
$ 7,969,879
Total liabilities and fund balance
$
1,466,452
$ 1,888,263
$ 3,777,609
$ 9,481,298
S 16,613,622
See accompanying Notes to the Financial Statements
m
City of Kalispell, Fontana
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets
June 30, 2010
Total fund balances - governmental funds $ 7,969,879
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in
the funds.
90,413,914
Assessments and accounts receivable will be collected this year, but are not available soon enough to pay
for the current period's expenditures, and therefore are deferred in the funds.
- current portion
1,410,780
- noncurrent portion
3,846,174
- ambulance
501,942
An internal service fund is used by management to charge the costs of providing services within the
government. The assets and liabilities of the internal service funds are included in governmental activities
in the government -wide statement of net assets
155,381
Long-term liabilities are not due and payable in the current period and therefore are not reported as
liabilities in the funds.
- bonds and notes payable
(14,544,852)
Loans recievable that will be collected at some future date that are recognized as revenues on the statement
of activities.
- current portion
82,133
- noncurrent portion
2,048,192
- portion that will be recognized as revenue on the statement of activities in future years
(1,060,743)
Total net assets - governmental activities $
90,822,800
See accompanying Notes to the Financial Statements
25
City of Kalispell, Montana
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2010
Community
Other
Total
Development
Governmental
Governmental
General Fund
Loan Revolving
SID 344
Funds
Funds
REVENUES
Taxes and assessments
$
4,449,015
$ -
$ 563,301
$ 3,073,561
$ 8,085,877
Licenses and permits
113,865
-
-
211,922
325,787
Intergovernmental
3,332,035
-
-
4,034,541
7,366,576
Charges for services
937,710
73,642
-
3,806,495
4,817,847
Fines and forfeitures
497,126
-
-
-
497,126
Miscellaneous
80,869
-
-
171,470
252,339
Investment earnings
54,639
6,379
45,782
106,800
Total revenues
$
9,465,259
$ 80,021
$ 563,301
$ 11,343,771
$ 21,452,352
EXPENDITURES
General government
$
2,395,786
$ -
$ -
$ 169,736
$ 2,565,522
Public safety
6,582,596
-
-
2,268,405
8,851,001
Public works
483,217
-
-
2,278,716
2,761,933
Culture and recreation
-
-
-
1,453,215
1,453,215
Housing and community development
-
40,787
-
1,582,195
1,622,982
Debt service - principal
66,700
-
225,000
834,228
1,125,928
Debt service - interest
19,214
-
178,845
429,619
627,678
Capital outlay
949,400
949,400
Total expenditures
$
9,547,513
$ 40,787
$ 403,845
$ 9,965,514
$ 19,957,659
Excess (deficiency) of revenues over expenditures
$
(82,254)
$ 39,234
$ 159,456
$ 1,378,257
$ 1,494,693
OTHER FINANCING SOURCES (USES)
Proceeds of general long term debt
$
-
$ -
$ -
$ 7,629
$ 7,629
Transfers in
516,615
-
57,432
1,166,465
1,740,512
Transfers out
(39,730)
(1,700,782)
(1,740,512)
Total other financing sources (uses)
$
476,885
$
$ 57,432
$ (526,688)
$ 7,629
Net Change in Fund Balance
$
394,631
$ 39,234
$ 216,988
$ 851,569
$ 1,502,322
Fund balances - beginning
$
372,381
$ 247,562
$ 56,348
$ 5,791,266
$ 6,467,557
Fund balance - ending
$
767,012
$ 286,796
$ 273,236
$ 6,642,835
$ 7,969,879
See accompanying Notes to the Financial Statements
W,
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, 2010
Amounts reported for governmental activities in the statement of
activities are different because:
Net change in fund balances - total governmental funds $ 1,502,322
Governmental funds report capital outlays as expenditures while governmental activities report
depreciation expense to allocate those expenditures over the life of the assets:
- Capital assets purchased 949,400
- Depreciation expense (3,655,169)
In the Statement of Activities, the loss or gain on the sale or disposal of capital assets is recognized. The
fund financial statements recognize only the proceeds from the sale of these assets:
- Gain on the sale of capital assets (392)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as
revenues in the funds:
- Donated capital assets 20,104
- Deferred assessments recievable (beginning of year) (6,199,216)
- Deferred assessments recievable (end of year) 5,758,896
- Deferred loans recievable (beginning of year) (2,205,006)
- Deferred loans recievable (end of year) 2,130,326
- Increase in deferred loans recievable not recognized as revenue in Statement of Activities (24,040)
The change in compensated absences is shown as an expense in the
Statement of Activities 27,868
Repayment of debt principal is an expenditures in the governmental funds, but the repayment reduces long-
term debt in the Statement of Net Assets:
- Long-term debt principal payments 1,125,928
Long term debt proceeds provide current financial resources to the governmental funds, but issuing debt
increases long-term liabilities in the Statement of Net Assets:
- Proceeds from the sale of long-term debt (7,629)
Internal service funds are used by management to chare the costs of certain activities, to individual funds.
The net revenue of the internal service funds is reported with the governmental activities of the
Government -Wide Statement of Activities net of the amounts allocated to business -type activities and
depreciation expense. 24,638
Capital assets transferred to enterprise funds (194,558)
Change in net assets - Statement of Activities $ (746,528)
See accompanying Notes to the Financial Statements
27
I I I I
19 Oki ii I in WMI, 1 !111111111 OWN 1
Water Fund — Accounts for the City's water utility operations, including water impact
fees.
Sewer Fund — Accounts for the City's sewer and storm water utility operations, including
sewer and storm impact fees.
li� Ili ii
61
Data Processing Fund — used to account for the goods and services provided by the data
processing department to other departments of the City on a cost -reimbursement basis.
City of Kalispell, Montana
Balance Sheet
Proprietary Funds
June 30, 2010
Governmental
Business -Type Activities - Enterprise Funds
Activities
Non -major
Internal Service
Water
Sewer
Enterprise
Totals
Funds
ASSETS
Current assets:
Cash and investments
$
3,072,975
$
2,027,905
$ 527,759
$ 5,628,639
$ 152,066
Taxes and assessments receivable, net
-
70,517
54,733
125,250
-
Accounts receivable - net
166,781
258,299
420
425,500
-
Due from other governments
22,306
227,032
123,130
372,468
-
Prepaid expenses
827
827
-
1,654
-
Inventories
96,902
96,902
Total current assets
$
3,359,791
$
2,584,580
$ 706,042
$ 6,650,413
$ 152,066
Noncurrent assets:
Restricted cash and investments
$
1,293,454
$
4,438,539
$ -
$ 5,731,993
$ -
Capital assets - land
103,263
248,063
1,347,868
1,699,194
-
Capital assets - construction in progress
31,402
-
91,808
123,210
-
Capital assets - depreciable, net
25,475,379
50,608,899
1,993,698
78,077,976
19,000
Total noncurrent assets
$
26,903,498
$
55,295,501
$ 3,433,374
$ 85,632,373
$ 19,000
Total assets
$
30,263,289
$
57,880,081
$ 4,139,416
$ 92,282,786
$ 171,066
LIABILITIES
Current liabilities:
Accounts payable
31,740
75,609
6,915
114,264
6,654
Accrued payroll
26,678
36,619
13,240
76,537
2,395
Retainage
-
16,384
-
16,384
-
Current portion of long-term capital liabilities
362,000
769,000
-
1,131,000
-
Current portion of compensated absences payable
11,631
30,214
8,224
50,069
Total current liabilities
$
432,049
$
927,826
$ 28,379
$ 1,388,254
$ 9,049
Noncurrent liabilities:
Noncurrent portion of long -tern capital liabilities
3,438,000
14,972,000
-
18,410,000
-
Noncurrent portion ofcompensatedabsences
86,139
124,903
59,138
270,180
6,636
Total noncurrent liabilities
$
3,524,139
$
15,096,903
$ 59,138
$ 18,680,180
$ 6,636
Total liabilities
$
3,956,188
$
16,024,729
$ 87,517
$ 20,068,434
$ 15,685
NET ASSETS
Invested in capital assets, net ofrelated debt
$
21,810,044
$
35,115,962
$ 3,433,374
$ 60,359,380
$ 19,000
Restricted for capital projects
778,005
2,525,407
-
3,303,412
-
Restricted for debt service
515,449
1,371,162
-
1,886,611
-
Restricted for special projects
-
328,970
-
328,970
-
Restricted for other purposes
-
213,000
-
213,000
-
Unrestricted
3,203,603
2,300,851
618,525
6,122,979
136,381
Total net assets
$
26,307,101
$
41,855,352
$ 4,051,899
$ 72,214,352
$ 155,381
Total liabilities and net assets
$
30,263,289
$
57,88Q,081
$ 4,139,416
$ 92,282,786
$ 171,066
See accompanying Notes to the Financial Statements
28
City of Kalispell, Montana
Statement of Revenues, Expenses, and Changes in Net Assets
Proprietary Funds
For the Fiscal Year Ended June 30, 2010
Governmental
Business -Type Activities - Enterprise Funds
Activities
Non -major
internal Service
Water
Sewer
Enterprise
Totals
Funds
OPERATING REVENUES
Charges for services
$
2,480,642
$
3,314,271
$ 70,694
$ 5,865,607
$ 157,459
Miscellaneous revenues
143,879
7,513
-
151,392
231
Special assessments
807,487
767,404
1,574,891
Total operating revenues
$
2,624,521
$
4,129,271
$ 838,098
S 7,591,890
$ 157,690
OPERATING EXPENSES
Personal services
$
987,746
$
1,579,869
$ 488,778
$ 3,056,393
$ 86,529
Supplies
65,350
107,338
40,856
213,544
42,550
Purchased services
302,826
748,463
50,381
1,101,670
118,934
Building materials
78,757
14,161
-
92,918
-
Fixed charges
214,137
412,275
106,712
733,124
32,409
Loss/bad debt expense
2,959
-
-
2,959
-
Depreciation
824,121
2,497,319
291,884
3,613,324
5,898
Total operating expenses
$
2,475,896
$
5,359,425
$ 978,611
$ 8,813,932
$ 286,320
Operating income (loss)
$
148,625
$
(1,230,154)
$ (140,513)
$ (1,222,042)
$ (128,630)
NON -OPERATING REVENUES (EXPENSES)
Licenses/permits revenue
256,305
549,133
-
805,438
-
Intergovernmental revenue
134,815
170,058
-
304,873
150,000
Interest revenue
78,701
130,531
18,911
228,143
3,268
Debt service interest expense
(162,115)
(616,968)
(779,083)
Total non -operating revenues (expenses)
$
307,706
$
232,754
$ 18,911
$ 559,371
$ 153,268
Income (loss) before contributions and transfers
$
456,331
$
(997,400)
$ (121,602)
$ (662,671)
$ 24,638
Capital contributions
161,801
203,253
365,054
Change in net assets
$
618,132
$
(794,147)
$ (121,602)
$ (297,617)
S 24,638
Net Assets- Beginning ofthe year
$
25,688,969
$
42,649,499
$ 4,173,501
$ 72,511,969
$ 130,743
Net Assets - End ofthe year
$
26,307,101
$
41,855,352
$ 4,051,899
$ 72,214,352
$ 155,381
See accompanying Notes to the Financial Statements
29
City of Kalispell, Montana
Statement
of Cash Flows
Proprietary Funds
Year Ended June 30, 2010
Governmental
Business -
Type Activities
Activities
Non -major
Internal Service
Water
Sewer
Enterprise
Totals
Fund
Cash Bows from operating activities:
Cash received from customers
$ $2,495,933
$ $3,293,598 $
$765,135 S
$6,554,666
S 157,690
Cash received from assessments
$720,713
$0
$720,713
Cash received from miscellaneous sources
143,879
$7,513
$0
$151,392
Cash payments for claims
(644,920)
($1,277,225)
($195,433)
($2,117,578)
($87,021)
Cash payments to employees
($975,034)
($I,585,951)
(5482,607)
($3,043 592)
($188,737)
Net cash provided (used) by operating activities
S 1,019,858
$ 1,159,648 $
87,095 S
2,265,601
$ (118,068)
Cash flows from capital and related financing activities:
Principal paid on bonds, loans and advances
($349,000)
($738,000)
-
($1,087,000)
-
Interest paid on bonds, loans and advances
(162,115)
($616,968)
-
($779,083)
-
Acquisition and construction of capital assets
($535,275)
($2,722,631)
-
($3,257,906)
-
Proceeds from bonds, loans and advances
$0
$0
$0
Net cash provided (used) by capital and related financing activities
$ ($1,046,390)
$ (4,077,599) $
- $
($5,123,989)
$
Cash Bows from non -capital financing activities:
Intergovernmental revenue
112,509
85,491
-
198,000
150,000
Proceeds of licenses and permits for non operating
256,305
$549,133
$805,438
Net cash provided (used) from non -capital financing activities
$ 368,814
S 634,624 S
$
1,003,438
$ 150,000
Cash flows from investing activities:
Interest on investments
78,701
$130,531
$18 911
$228,143
3,268
Net cash provided (used) by investing activities
$ 78,701
$ 130 531 $
18 911 S
228,143
$ 3,268
Net increase (decrease) in cash and cash equivalents
$ 420,983
S (2,153,796) $
106,006 S
(1,626,807)
$ 35,200
Cash and cash equivalents at beginning
$3,945,446
$8,620,240
5421,753
$12,987,439
116,865
Restatements
Cash and cash equivalents at end
S 4,366,429
$ 6,466,444 $
527,759 $
11,360,632
$ 152,065
Reconciliation of operating income (loss) to net cash provided
(used) by operating activities:
Operating income (loss)
$ 148,625
$ ($1,230,154) S
($140,513) S
(1,222,042) $ (128,630)
Adjustments to reconcile operating income to net cash
provided (used) by operating activities:
Depreciation
824,121
$2,497,319
291,884
3,613,324
5,898
Bad Debt
-
$0
-
-
Changes in assets and liabilities:
-
Accountsreceivable - net
$18,250
($20,673)
(72,963)
($75,386)
-
Taxes and assessments receivable, net
-
($86,774)
-
(86,774)
-
Inventories
$26,305
-
26,305
-
Accounts payable
($10,155)
$5,012
$3,856
($1,287)
5,156
Accrued payroll
$12,712
($6,082)
54,831
11,461
(5492)
Net cash provided (used) by operating activities
$ 1,019,858
$ 1,158,648 $
87,095 $
2,265,601
$ (118,068)
The City received non cash contributions of land and infrastructure as follows:
$161,801
$203,253
$365,054
See accompanying notes to the financial statements
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NAMMAW "Iblk:
Agency Funds — used to account for assets held by the City as an agent for individuals,
private organizations, other governments, and/or other funds.
City of Kalispell, Montana
Statement of Fiduciary Net Assets
Fiduciary Funds
June 30, 2010
ASSETS
Cash and short-term investments
Total assets
LIABILITIES
Due to others
Total liabilities
See accompanying Notes to the Financial Statements
Agency
Funds
$ 174,208
$ 174,208
174,208
174,208
31