4. Government-Wide Financial StatementsASSETS
Current assets:
Cash and investments
Taxes and assessments receivable, net
Accounts receivable - net
Due from other governments
Contracts receivable
Notes and loans receivable
Prepaid expenses
Inventories
Total current assets
Noncurrent assets
Restricted cash and investments
Deferred assessments recievable
Deferred impact fees 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
Retainage
Accrued payroll
Current portion of long-term liabilities
Current portion of long-term 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
Other post employment benefits
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, 2011
Governmental
Business -type
Downtown
Parking
Activities
Activities
Total
BID
Commission
$ 8,181,158 $
5,784,070
$
13,965,228 $
124,884 $
24,111
1,698,619
117,089
1,815,708
9,905
-
402,148
476,213
878,361
-
10,206
991,622
190,781
1,182,403
10,785
-
114,352
19,338
133,690
-
85,734
-
85,734
-
106,650
473
107,123
1,350
-
91,491
91,491
-
$ 11,580,283 $
6,679,455
$
18,259,738 $
145,574 $
35,667
$ 886,586 $
5,914,395
$
6,800,981 $
- $
-
3,889,495
-
3,889,495
2,198
2,198
2,051,189
-
2,051,189
2,552,209
1,699,194
4,251,403
268,544
129,536
398,080
-
87,312,757
75,294,665
162,607,422
34,621
$ 96,962,978 $
83,037,790
$
180,000,768 $
- $
34,621
$ 108,543,261 $
89,717,245
$
198,260,506 $
145,574 $
70,288
501,705
103,604
605,309
5,725
341
25,435
-
25,435
-
-
405,698
78,547
484,245
1,966
25,117
-
25,117
-
1,040,231
1,077,000
2,117,231
2,855
33,479
39,250
72,729
-
820
820
13,766
$ 2,031,665 $
1,299,221
$
3,330,886 $
5,725 $
18,928
1,116,997
-
1,116,997
-
-
672,016
-
672,016
-
10,797,396
17,333,000
28,130,396
10,435
958,038
235,777
1,193,815
4,371
620,022
620,022
$ 14,164,469 $
17,568,777
$
31,733,246 $
- $
14,806
$ 16,196,134 $
18,867,998
$
35,064,132 $
5,725 $
33,734
$ 78,295,883 $
58,713,395
$
137,009,278 $
- $
21,331
2,498
3,837,785
3,840,283
-
904,935
1,886,611
2,791,546
7,222,094
-
7,222,094
-
190,000
190,000
-
-
5,921,717
6,221,456
12,143,173
139,849
15,223
$ 92,347,127 $
70,849,247
$
163,196,374 $
139,849 $
36,554
$ 108,543,261 $
89,717,245
$
198,260,506 $
145,574 $
70,288
28
L 1 �;
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.
ASSETS
Cash and investments
Taxes and assessments receivable, net
Accounts receivable - net
Due from other funds
Due from other governments
Contracts receivable
Notes and loans receivable
Prepaid expenses
Restricted assets:
Cash and investments
Total assets
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Retainage
Accrued payroll
Due to other funds
Deferred revenue - accounts recievable
Deferred revenue - assessments recievable
Deferred revenue - loans recievable
Deferred revenue - impact fees recievable
Total liabilities
Fund Balance:
Nonspendable - not in spendable form:
Prepaid
Long-term receivables
Restricted:
Municipal Court Technology
Public Safety
Public Works
Culture and Recreation
Community Development
Debt Service
Other Capital Projects
Other Purposes
Unrestricted fund balance:
Assigned
Capital Equipment
Parking
Band Shell
Unassigned
Total fund balance
Total liabilities and fund balance
See accompanying Notes to the Financial Statements
City of Kalispell, Montana
Balance Sheet
Governmental Funds
June 30, 2011
Community
Other
Total
Development
Governmental
Governmental
General Fund
Loan Revolving
SID 344
Funds
Funds
$ 1,186,937 $
332,081 $
36
$
6,532,001 $
8,051,055
597,187
-
3,584,051
1,406,876
5,588,114
-
-
-
402,148
402,148
-
16,000
-
933
16,933
38,111
-
65,277
888,234
991,622
114,352
-
-
2,198
116,550
25,168
1,626,880
484,875
2,136,923
104,177
-
-
973
105,150
$ - $
- $
226,000
$
660,586 $
886,586
$ 2,065,932 $
1,974,961 $
3,875,364
$
10,378,824 $
18,295,081
58,473
-
-
418,971
477,444
-
25,435
25,435
268,009
135,908
403,917
-
16,933
16,933
-
-
397,495
397,495
597,187
-
3,584,051
1,406,876
5,588,114
-
1,626,880
-
484,875
2,111,755
-
-
-
2,198
2,198
$ 923,669 $
1,626,880 $
3,584,051
$
2,888,691 $
9,023,291
$ 104,177 $
- $
$
973 $
105,150
25,168
-
25,168
45,652
-
45,652
-
519,932
519,932
1,583,588
1,583,588
-
436,481
436,481
348,081
4,364,570
4,712,651
-
291,313
613,622
904,935
-
2,498
2,498
-
15,234
15,234
20,000
-
20,000
23,542
23,542
12,526
12,526
911,198
-
-
(46,765)
864,433
$ 1,142,263 $
348,081 $
291,313
$
7,490,133 $
9,271,790
$ 2,065,932 $
1,974,961 $
3,875,364
$
10,378,824 $
18,295,081
30
City of Kalispell, Montana
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets
June 30, 2011
Total fund balances - governmental funds
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in
the funds.
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
Long-term liabilities are not due and payable in the current period and therefore are not reported as
liabilities in the funds.
- Other post employment benefits
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
- noncurrent portion
- ambulance
- impact fees
Loans recievable that will be collected at some future date that are recognized as revenues on the statement
of activities.
current portion
- noncurrent portion
- portion that will be recognized as revenue on the statement of activities in future years
Total net assets - governmental activities
See accompanying Notes to the Financial Statements
$ 9,271,790
90,090,495
144,482
(13,522,183)
(620,022)
1,243,127
4,344,987
397,495
2,198
79,740
2,032,015
(1,116,997)
92,347,127
31
City of Kalispell, Montana
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended ,tune 30, 2011
Community
Other
Total
Development
Governmental
Governmental
General Fund
Loan Revolving
SID344
Funds
Funds
REVENUES
Taxes and assessments
$
4,723,511
$
-
$
364,469
$
3,213,387
$
8,301,367
Licenses and permits
51,169
-
-
272,102
323,271
Intergovernmental
3,458,310
-
-
4,407,359
7,865,669
Charges for services
973,745
55,450
-
3,711,448
4,740,643
Fines and forfeitures
549,267
-
-
-
549,267
Miscellaneous
74,093
-
-
177,365
251,458
Investment earnings
34,410
5,835
39,239
79,484
Total revenues
$
9,864,505
$
61,285
$
364,469
$
11,820,900
$
22,111,159
EXPENDITURES
General government
$
2,393,244
$
-
$
-
$
139,133
$
2,532,377
Public safety
6,794,180
-
-
1,538,589
8,332,769
Public works
552,602
-
-
2,486,858
3,039,460
Culture and recreation
-
-
-
1,385,997
1,385,997
Housing and community development
-
-
-
2,034,606
2,034,606
Debt service - principal
69,139
-
225,000
765,366
1,059,505
Debt service - interest
13,774
-
169,957
396,630
580,361
Capital outlay
107,141
1,837,494
1,944,635
Total expenditures
$
9,930,080
$
$
394,957
$
10,584,673
$
20,909,710
Excess (deficiency) of revenues over expenditures
$
(65,575)
$
61,285
$
(30,488)
$
1,236,227
$
1,201,449
OTHER FINANCING SOURCES (USES)
Proceeds of general tong term debt
$
-
$
-
$
-
$
100,462
$
100,462
Transfers in
514,326
-
48,565
666,412
1,229,303
Transfers out
(73,500)
(1,155,803)
(1,229,303)
Total other financing sources (uses)
$
440,826
$
$
48,565
$
(388,929)
$
100,462
Net Change in Fund Balance
$
375,251
$
61,285
$
18,077
$
847,298
$
1,301,911
Fundbalances- beginning
$
767,012
$
286,796
$
273,236
$
6,642,835
$
7,969,879
Fund balance - ending
$
1,142,263
$
348,081
$
291,313
$
7,490,133
$
9,271,790
See accompanying Notes to the Financial Statements
32
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, 2011
Amounts reported for governmental activities in the statement of
activities are different because:
Net change in fund balances - total governmental funds $ 1,301,911
Governmental funds report capital outlays as expenditures while governmental activities report depreciation
expense to allocate those expenditures over the life of the assets:
Capital assets purchased 1,944,635
- Depreciation expense (3,721,977)
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 (87,337)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as
revenues in the funds:
Donated capital assets
753,898
- Deferred impact fees recievable (beginning of year)
-
Deferred impact fees recievable (end of year)
2,198
- Deferred assessments recievable (beginning of year)
(5,758,896)
- Deferred assessments recievable (end of year)
5,985,610
Deferred loans recievable (beginning of year)
(2,130,326)
- Deferred loans recievable (end of year)
2,111,755
Increase in deferred loans recievable not recognized as revenue in Statement of Activities
(56,254)
The decrease in compensated absences is shown as a expense reduction in the
Statement of Activities 63,626
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 1,059,505
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 (100,462)
The increase in other post employment benefits is shown as an expense in the
Statement of Activities (143,752)
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. (10,899)
In the Statement of Activities, the transfer of capital assets to a enterprise fund is recognized as an expense.
The fund financial statements don't recognize the transfer because there is no flow of current financial
resources: (112,574)
Change in net assets - Statement of Activities $ 1,100,661
See accompanying Notes to the Financial Statements
33
IUVYJAIIOI OA RIN I a IM
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.
I WI III 10IMMMMIJAWOM
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
,tune 30, 2011
Governmental
Business
-Type Activities
- Enterprise
Funds
Activities
Non -major
Internal Service
Water
Sewer
Enterprise
Totals
Funds
ASSETS
Current assets:
Cash and investments
$
2,990,451
$
2,034,783
$
758,836
$ 5,784,070
$
130,103
Taxes and assessments receivable, net
-
52,724
64,365
117,089
-
Accounts receivable - net
165,878
309,845
490
476,213
Contracts receivable
6,197
13,141
-
19,338
-
Due from other governments
-
105,079
85,702
190,781
-
Prepaid expenses
473
-
-
473
1,500
Inventories
91,491
91,491
Total current assets
$
3,254,490
$
2,515,572
$
909,393
$ 6,679,455
$
131,603
Noncurrent assets:
Restricted cash and investments
$
963,803
$
4,950,592
$
-
$ 5,914,395
$
-
Capitalassets - land
103,263
248,063
1,347,868
1,699,194
-
Capital assets - construction in progress
37,728
-
91,808
129,536
-
Capital assets - depreciable, net
25,292,954
48,257,855
1,743,856
75,294,665
43,015
Total noncurrent assets
$
26,397,748
$
53,456,510
$
3,183,532
$ 83,037,790
$
43,015
Total assets
$
29,652,238
$
55,972,082
$
4,092,925
$ 89,717,245
$
174,618
LIABILITIES
Current liabilities:
Accounts payable
35,115
61,351
7,138
103,604
24,261
Accrued payroll
27,256
38,921
12,370
78,547
1,781
Current portion of long-term capital liabilities
280,000
797,000
-
1,077,000
-
Current portion of compensated absences payable
13,193
20,841
5,216
39,250
-
Other current liabilities
820
820
Total current liabilities
$
356,384
$
918113
$
24,724
$ 1,299,221
$
26,042
Noncurrent liabilities:
Noncurrent portion of long-term capital liabilities
3,158,000
14,175,000
-
17,333,000
-
Noncurrent portion of compensated absences
76,265
101,377
58,135
235,777
4,094
Total noncurrent liabilities
$
3,234,265
$
14,276,377
$
58,135
$ 17,568,777
$
4,094
Total liabilities
$
3,590,649
$
15,194,490
$
82,859
$ 18,867,998
$
30,136
NET ASSETS
Invested in capital assets, net of related debt
$
21,995,945
$
33,533,918
$
3,183,532
$ 58,713,395
$
43,015
Restricted for capital projects
448,355
3,389,430
-
3,837,785
-
Restrictedfordebtservice
515,449
1,371,162
-
1,886,611
-
Restricted for other purposes
-
190,000
-
190,000
-
Unrestricted
3,101,840
2,293,082
826,534
6,221,456
101,467
Total net assets
$
26,061,589
$
40,777,592
$
4,010,066
$ 70,849,247
$
144,482
Total liabilities and net assets
$
29,652,238
$
55,972,082
$
4,092,925
$ 89,717,245
$
174,618
See accompanying Notes to the Financial Statements
34
City of Kalispell, Montana
Statement of Revenues,
Expenses, and Changes in Net
Assets
Proprietary Funds
For the Fiscal
Year Ended June
30, 2011
Governmental
Business -Type Activities - Enterprise Funds
Activities
Non -major
Internal Service
Water
Sewer
Enterprise
Totals
Funds
OPERATING REVENUES
Charges for services
$
2,168,153
$
3,274,532
$ 70,900
$ 5,513,585
$ 145,624
Miscellaneous revenues
128,441
21,981
-
150,422
163
Special assessments
827,507
805,613
1,633,120
Total operating revenues
$
2,296,594
$
4,124,020
$ 876,513
$ 7,297127
$ 145,787
OPERATING EXPENSES
Personal services
$
984,114
$
1,442,273
$ 438,872
$ 2,865,259
$ 84,465
Supplies
84,716
100,208
61,191
246,115
34,737
Purchased services
323,267
741,277
88,702
1,153,246
172,576
Building materials
80,935
35,201
-
116,136
-
Fixed charges
226,657
459,758
94,169
780,584
31,669
Depreciation
839,662
2,516,227
249,841
3,605,730
9,941
Total operating expenses
$
2,539,351
$
5,294,944
$ 932,775
$ 8,767,070
$ 333,388
Operating income (loss)
$
(242,757)
$
(1,170,924)
$ (56,262)
$ (1,469943)
$ (187,601)
NON -OPERATING REVENUES (EXPENSES)
Licenses/permits revenue
262,817
441,341
-
704,158
-
Intergovernmental revenue
7,430
28,899
-
36,329
174,937
Interest revenue
55,354
84,474
24,079
163,907
1,765
Debt service interest expense
(149,942)
(587,924)
(737,866)
Total non -operating revenues (expenses)
$
175,659
$
(33,210)
$ 24,079
$ 166,528
$ 176,702
Income (loss) before contributions and transfers
$
(67,098)
$
(1,204,134)
$ (32,183)
$ (1,303,415)
$ (10,899)
Capital contributions
134,322
126,374
-
260,696
-
SPECIAL AND EXTRAORDINARY ITEMS
Special item -
(312,736)
(312,736)
Change in net assets
$
(245,512)
$
(1,077,760)
$ (32,183)
$ (1,355,455)
$ (10,899)
Net Assets - Beginning of the year
$
26,307,101
$
41,855,352
$ 4,051,899
$ 72,214,352
$ 155,381
Restatements
(9,650)
(9,650)
Net Asses - Beginning of the year - Restated
$
26,307,101
$
41,855,352
$ 4,042,249
$ 72,204,702
$ 155,381
Net Assets - End of the year
$
26,061,589
$
40,777,592
$ 4,010,066
$ 70,849,247
$ 144,482
See accompanying Notes to the Financial Statements
35
City of Kalispell, Montana
Statement of Cash Flows
Proprietary
Funds
Year Ended June
30, 2011
Governmental
Business - Type Activities
Activities
Non -major
Internal
Service
Water
Sewer
Enterprise
Totals
Fund
Cash flows from operating activities:
Cash received from customers
$
2,175,696 $
3,222,987 $
70,831 $
5,469,514 $
145,787
Cash received from assessments
-
885,354
833,407
1,718,761
-
Cash received from miscellaneous sources
127,621
21,981
-
149,602
-
Cash payments for claims
(717,678)
(1,352,259)
(243,838)
(2,313,775)
(222,876)
Cash payments to employees
(991,849)
(1,472,869)
(443,752)
(2,908,470)
(87,620)
Net cash provided (used) by operating activities
$
593,790 $
1,305,194 $
216,648 $
2,115,632 $
(164,709)
Cash flows from capital and related financing activities:
Principal paid on bonds, loans and advances
$
(362.000) $
(769,000) $
- $
(1,131,000) $
-
Interest paid on bonds, loans and advances
(149,942)
(587,924)
-
(737,866)
-
Acquisition and construction of capital assets
(517,997)
(52,811)
-
(570,808)
(33,955)
Proceeds from government grants
29,736
86,543
116,279
Net cash provided (used) by capital and related financing activities
$
(1,000 203) $
(1,323,192) $
- $
(2,323,395) $
(33,955)
Cash flows from non -capital financing activities:
Intergovernmental revenue
$
- $
24,255 $
- $
24,255 $
174,937
Proceeds of licenses and permits- for non operating
251,620
428,200
-
679,820
-
Acquisition of latecomers agreements rights
(312,736)
(312,736)
Net cash provided (used) from non -capital financing activities
$
(61,116) $
452,455 $
- $
391,339 $
174,937
Cash flows from investing activities:
Interest on investments
$
55,354 $
84,474 $
24,079 $
163,907 $
1,765
Net cash provided (used) by investing activities
$
55,354 $
84,474 $
24,079 $
163.907 $
1,765
Net increase (decrease) in cash and cash equivalents
$
(412,175) $
519,931 $
240,727 $
347,483 $
(21,962)
Cash and cash equivalents at beginning
4,366.429
6,466,444
527,759
11,360,632
152,065
Restatements
(9,650)
(9,650)
Cash and cash equivalents at end
$
3,954.254 $
6,985,375 $
758,836 $
11,698,465 $
130,103
Reconciliation of operating income (loss) to net cash provided
(used) by operating activities:
Operating income (loss)
$
(242,757) $
(1,170,924) $
(56,262) $
(1,469,943) $
(187,601)
Adjustments to reconcile operating income to net cash
provided (used) by operating activities:
Depreciation
839,662
2,516,227
249,842
3,605,731
9,941
Bad Debt
1,640
-
-
1,640
-
Loss on Disposition of Asset
347
-
_
347
_
Changes in assets and liabilities:
Accounts receivable- net
5,903
(51,545)
(70)
(45,712)
-
Increase in Hydrant Meter Deposits
(820)
-
-
(820)
-
Taxes and assessments receivable, net
17,793
(9,633)
3,160
-
Prepaid expenses
354
827
-
1,191
0,5W)
Increase Comp Abs
(8,312)
(32,897)
(4,010)
(45,219)
(2,541)
Decrease in due from County
-
40,054
37,427
77,481
-
Aecounts payable
(2,804)
(16,642)
224
(19,222)
17,606
Accrued payroll
577
2,301
(870)
2,008
(614)
Net cash provided (used) by operating activities
$
593,790 $
1,305,194 $
216,648 $
2,115,632 $
(164,709)
The City received non cash contributions of land and infrastructure as follows:
$134,322
$126374
$260,696
See accompanying notes to the financial statements
36
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, 2011
Cash and short-term investments
Total assets
LIABILITIES
Due to others
Total liabilities
101I H-II.XyDIIK`
Agency
Funds
$ 143,026
$ 143,026
143,026
$ 143,026
See accompanying Notes to the Financial Statements
37