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5. Notes to Financial Statementsuntitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.p Sl,"'ATEMEN"TS of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf "' r, I„rm m7g ,pia m �u� Iln»" t„m s-ram Al a"f .. nw,+ +", "'aNti � I I NOTE,ING I , SIGNIFICANT q POLICIES LS : r . rro,mt �,m ,lies retI;aacceptedfintnn a ,.nN.» ra nc l es,a Illrelevant m.l tGovernmental ASB) Accounting � o � � „ , �al ,, � t n o r Board ,, rn pronouncements.,nl t, N " e tit nt to ° is finaincial st t et , m the Financial .re:aAccounting St : N Board N„ oref S »ponnc. t.s9cotre.. l , � nc N le Board d nl a nir r s sn� o: In mo November »t� � have been a " 1ie(1 r» lethose »" cnnt, conflict with I '� '; , �� ,I nab ,"„»,� , ,,, mn ,a,r,. ma nl» "* �, �! ' Noss. N�" 4" „" m �, � r n L�, Illt inn l l " contradict » �„n 1,,. �, ,�,,�I � � s� ; �� n„r 1 1, � �n For enterprise s 1 � nI �» �„ � 1 �„ tor , Ci ty the , option e.Dnct g,apply l1». , *"W, , ts Issued s,ea aftere>o, , 1I e30, 1989.,. 1r City aN. elected lW ed not, m apply lAnte 2004, rr the Gv eretmcc "tt w x .�t ?fIlBoard hrl l;issued n ,vl " tw eewnt No. ��n�lr'tnr and l rec a .1 Reporting by Employers ^ s ,at mte, ' nelss Other 1ari Pensions. 1" City leet this new tat" e t dmthe ��,ended �"e '30, 1 2011. Certain m t m r ° ,ii - Nr � in th �ten: ro»�e ,,fil . . re : c, ,tw" o of cost »„mp<,wemployment benefits on .e*, g, Nryenta vn'financial q��a�I �accrual . t�I:�ntr a t �c anl basis mre», r accounting insteadof tht mh h». 1 Provide � � a� � � I� �L III. � � � N r.. ,i "., as , ,,...,r ,,.., ,e , :.. ,�. ,. ,,�� ., ,.... I: , "., , :. ,. ,�,: ». ,, wa..a , :,�«. N, ,,.. i ,. .. a...,..,, ;...:.. .. ..: .. .. no v,.,,,r major ru plan ,,. v ;. „r.,, r. , ;.. r. I I I Iro �, 0°NP ^ 7N r a w � NN IfP r �" r � n nF, N I , M ,VO n IIN 1„ntm �InNt hr� It r ��, t� �rn»"�,t lea, lta �1 �,� �� nrr l°1 l°�„ 1 »N demot gcs. Financial Entity � � financial nl .. tin�»� m ,... .. 4N �re ,:Nyg �»m.�yb w,ay : .. ,. , �' . " IN' '*P I m,ry uH .�, :.. r ��. .r, ,„I. r. ...... » „. o,». n ;„ . �, r. n ,,, r.; ,: :. -n. r �... ,„r; � ,,,.,», „ ,�, r , � �. .a � ... ,r ,,, ,.. . „ �,,»Ire. n the �,� '. ,1 +n. a ,,. rr ,. the U"� , , � m w I , r m: ��'.... ,;'� : , (. r , ,r �, „re ,.. ! :, „� , r () r,I l �t�� I tl �Nt,, the a�," p� t ,1� 'I r�� 1 �„ �," �, �t t��t „ � n J »n " r r, ,, �» r, ,. F r l ,, units n r „ » � ,n r , 1, , , r. " " � r" ," , , � r � » ' �i, mN e nr �I , � i ;�I, qo I r+ F units" m IVI,�+ ry r N � v, na lnn n� , n" �t tmn " t City 1° �a voting t�, t� , �nn� the s r!WV a , „llre mmr' °;� ,.. ��, of , .: "ay.. ,�M " '�"" �� ' I ' � rr� "" „ Iw ,r+y ^'� m�� "vm, i IN': ';,'� ,','�� "�" » -,r.. m': ," �W:'. r i� Ip� ". re r i„� » �; exists., .,m, t" t r „ t,s th, nt »», �I ha c1 benefit burden Nlt��ll, trim t[IrtrAteityt ernme "Me ,. City, � r . ,r.. Ilm mr �Im � a �, �v, State � -. ,m; :. .,,a� � � , e , II,. ,.., :. 'i .:✓.. ;, ,ra, ... subdivision ,,.... r..r: ,, ;.. .',. ,» m ': n'; r. r rr � .;�,I ,» �: ie,; v r ,, ;„u ;v�.. ,, „» ;. a '., » o ,. I re ."r. .. mn �� :.. �' I mr r,. ,;, ,gym �. � .m ,� , :nn , ,N ,. �..,V Imr.. N ,.... ^�.. r. � v fh Kalispell ,� � ltN,l �lnr � nl the �" t t »1 tr ,�� l„ � �� Ia l fla",� ;t. lr �� lull „ eregistered. voters of the City. tre n, w,„ wN .y ... ,r ie a 'the C"N<yManager rr»of . ,v.City, pnIg rat„ ,r s c..,s mr ..c"e, d r, m ,,tm , I ..,rt i.. y„ .,. »r, I. i ,�. 6ai. I. ,. V.. el.. ,. , GI ».. 10 ,., r ni. following, , criteria: ✓i �., rl. iln,. rl. i ,., r. v ': �» nnnnnnt � t �I �» 1 , ln� 1� �nmt� � t � the ll»,� � tN,.� l „rn � separately Ire. " � � r � �� o" elected ooln I , In „yr.. Y W � rre!'. m' , , Un NW: '"7. r "�„ r I ,. ,... .. p I " N r. uN ryln � r , ; .. "vN r" I , .,, r , w �;m: lent In ll� rlW It s l fly s"lr t� Vic) h, hlr ll independent l the III, N not„»m In State. m»l other l ,�n, l Il��w ,, #r mnfinancial t to � t.� present h» r M J 'nt and its c n onI units, e t ti n which,th : " e t 'is, cons ere 'to t befinancially n,nllaccountable. ��l��ginl statements rte„ s 'Include �� n s awi";a,* m „ �� I; s and atidiorttles whicl, meet the criteria fior inclusionN City,"', 1 t� 1�,� �:terinclude 1 �',.1 my re, � nm � I ;� accountability, , „ ,,, n , ,� r a LI , r v the r n na» �r la n, I, „ » a, 11 I � ,, derived , appointment , ;art t, »J, �nr,�, : � Nt �I 1�N 1" l,�N t„ »n. ' the 1° t,nrw t t rt,,?s t,," smet presented re e: �, c.`, e, units a . �eae. et,mn tes NtI e"� the 1r nnt unit cfi, eca: r ,eo :-. , do not 1114,0 "t, " blending. lhCities' t_ o discretely t 1 presented nsNIt' c� eI w tt�ln 1s l" l Parking " n , " t ln BusinessImprovement District are legally seII" te organizations of t ' , bmt t„,N City s financially 'u,t l,re Flie component o.rpnt,n tsare reported p t d� s .are, ate l n mv, to m 1. slir' that they are .e le Nl separate 'from 1 m l , e, tm Kal 40taa t �t a ntlltn hmr KAalispelf City Council passed Res olution 13 ,gym ,„ ltl ant tin t Special e" lParking District #r2 on 1,N 21 1993. 'Mlne r : ^,tia �` ^m w ,;;�,, 1 W .,I,� *^ ,, : II rlm% : ,": r ; � , re , ,;,. ;,,� m» � the „ , mll.. r a i I. N' "m ,n».. r. n, ' ,: ro,,,N" nr » �i � Also lra��d � 1 "gar,"� lat, l ti ��"r;�l at n tt� t , 1� lr � �� tl t t� , a, �at,f� 3 48 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.l�,-alispell.com/finance/documents/FinancialReportbl.pdf 0"I"Y'OF KALISPELL NOTES 7`0 FINANCIA1., S"T"ATEMENT'S, I i i 'repair"Ing, tand limprovin,g Spt*.cial Pztrkling Maintenance District #2 and Resiolution4105, ii Re tlwa Narking Commisslion U.),flunction in the Clity of K,�cdlispell and declariing ajudisdicuional a,'re wheretin salid Parking Commisslion lis authorl'7wd' to ftinction. T"tie Mayor arid Cfi�y Council iippolinteJ the Board of Dlirc�ctorss compose's/4 ofClity residents- w1w operate busine�,s/ses,,, witbin the diktrim 11w Nvtrking Comtnisston o p emed their &",wrs on Fcbn,jary Ist 1994. "T'he Clity, transferred $53,000 U In Fiscal 19,94 to the d1strict as start up awntwy; no firther Ci�v funds have 1), n given to the district. It "is intended t1lat the Parking Commission bc operated asa Proprifeutry, type f1ind and has been cht. s1fied as such in t1te City's f1i"nancial staten'tents. "I"he Ka, 11spell Ctty Council pas'sed Ordinkince 1709 on Dec,,,.ember 5, 2011. Ordinance 1709 dissolves the Kalispell Parkiing Commisislon, efl tive (30) day,,rs- ff/�om and after 1he d a te of [ts, final passi,,,ig�,,;k, �:�tnd approval. 17he ftinctions and empk,)Y1Lx',',%s of the Parkang CotTinuission are to be tlralnskrred to (fie Kadispell Polices Department., part, of tfw City ` s general 'fund. "I"li 'I's ordinance also creates a Parking Advisory Board to provide advice and re*,cortlrnendat ions re&�,,irding on atid off' -street Parking. ,w Downtown Bu"5: lmpq/ I rict I % *1 1 � 'be On September 2003, by resolution 4828, tfw City cre"'Catt",,ed the Dow!,nt(,',',),,wn Bus. rit%.ss Improvement District (BID). I and Clity Council applointed the Bozard of" Directors. 77he City lis able to itnPose its wi'll on tlie BID as; ih is atrthorlizxwd to levy a,s,-,se,,.c,;srnenv4; t(,,,) support the avivit'les ofthe BID, 1"I"te arintuzil budget, of"the BID is subJect to approval byttie("."It",�YCOI,,,I/tic*ll. "The purpo,.s,',;e of said Business Irnprovernent District Is to Promote the health, sak�ty, prosperity 01 se urity and g .�:neral welfairc of the inhabil'tants of the City of Kalispell the proposed dist/rict, and appears, to be of special benefit to d"je property within 'the 1, J )tul 1h Str ,,, t� t /tes are roughly 2" Avenue East to .2, ", Avenue West be'tween Center Street and 4 el, : South. Distri, "'rfie District '�boundar* PUbAliCly OWM'd propert,"y and owner, occuplied singic le f-itnifly dwellings are exempt frorn, the relatc,%,d, to the District. 117 "T"ourism Buslqga I -Lniprpvemetit District On Ma 3, 2,010, by re-soluttion 5425, t1w Clity created, the Tourisrn Unprovernent District JBID). 1"he Mayor wit.11 tile Y 11 apj�,woval of the Cf�y Courwil appolintexi WWII OWTIeWs of property withintlite distrietto act as flie M:,) rd of"frustees ofthe District. The Clity is able to'Impo.4,'we Its, wfill (:ni t1w TBID a,s It, is authorlized to leyy ass,',cs,stivents, to support, tfie actliviklies oftheTBID. I'lie annual budget or ttie TBID 'I's subject. to, approval by tfie Clity Councill. The purpose of said Tourl'sin Busliness Unprovetnent District 'is to promote the Ith, safety, prosperity ity and tzeneral welfare ofthe inhablitants, of the Cl*ty,,, of K"allispell and the p,ropos- district, and appears to be of spev"al benefit to the property withilt) the Distri'a. '11,w Diistnict i's made up oft hmsic propewrtlle* witbiri the cor�porate 1114"nits; of the City of Kalispell with live or rz�wre r(:,)�(,)ms providing ovemight stays, tbrt/ranslient patrons at As busine s,,,, 1"Or fis-cal year ""'20 L'22% tile City" 01" K",allspOl 'is riot incitiding tfic finat nictal st errientts- ofthe "Fourism Busi/ticss Improwment, DEst, Ict in its annual report. In making the de Vs, ion to n(,,,,,,)t include tfiiese finitncial statenittits the City cotislideret'l the "TBID's wssets;,, revenues, and expci-idititit-es in relation to other goverrimentittl funds of the ("ity. The TBID accounts Rv V!�'O', or less, ofasisevs, revenues, and expenditures. Basths, of Prtj�sie, n tat Ii/on, Measurement Focus, and Basdis of Accounting Government- wi(,,,1k1,! 1"inancicil ',51,471 ements,, The goveniment-wide flitaricial statements, (i.e., tlie Statement of Net Asse'tsi, and the Statement ofActivitles) report itif rinkittion its 11 on all ofthei nonfiduciary act'11`vit1',e,,.s,/; ofthe primaqv govenmient eand, I - coinponent ttnits. For the most pvart,,, d"le effect ofintert"Iind i activity hats. been removed &orn these statements. (3overtirnental activ,111es, whicti normally are supponedbytaxes and intergovemmental revenues, are reported separately fiom bustiness-ty"j,,)e. ac;,,tivities, which rely to a sWilticant extent on f, s and charges fi:ir supp(,,)rt. I ", ikewlse, t/he primary government , is reported separ,4-itely fforn certain legally separate coinponel"It unit./s.- for w!"flich the primary government i's, financially, accounvable. E 49 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.l�,-alispell.com/finance/documents/FinancialReportbl.pdf CIT'i," OF KALISPELL., NUI 1,',-',S Fl,'NANCIAL S]"ATEMENT'S ,�,en made to mininfize the double -counting of bu I'n s-ty vit I .1i'minahoi is have bt I es pe acti, i tes. The stiatement of acti'vi"fies denionstrates the de I I # 11 gree to whlicli the direct expenises of a given ffination or segnien't is, offiset by prograin revenues,. Direct expense:s are those that are clearly ideno''fiable with a speclific f4riction or!,,; nient. Thegeneral ,* 0 ",, "-enc% �%s of ottter ffinctiol, . ... . ..... e experlses goveminent hinction of tlw Clity lincludes exj)enses which are',� , in ess, �e, indirect, expetuw is. I hes are allocated to ei,,tch related tbnctlon. Pro rain revenues include 1) charges to customer's or applicants who purchase, use, or 9 directly bewnefit t''orn goods, serviices, or privileges provided by a giver) 't"Unction (,,,)r segri"nea"it, itind '27) grants and contributions that a a I I I re resitHcu'A to met:tlitig t'he operat14"mal or capital requirements of a p4,,�trtlicular function or seginent. T`axes and ottier iterns not properly included atnorig pr<:)grarn reventies are reported instead i�vs,general revenues. 1ndir(,,,! t expenses reported in "the stat ment of activaiies inust, be to tlie dit'l rent titincil'ons, oftheCilly. Ttiese expenses include, adrvilmstration, datit pr,(,x.,,,ess1'ng, arM central garz",,tge. 'T'he administrati've cost allocation is based on e�zwh kinctions p,ercentag 111C tons usag,(.* of t"11'e city": �(%,. of total City expenses. Dat pr(:,�),cessliqg Is allo ated based approxirruitely on tti 't 154, ti computer, servers. Central giarag; exj:),,ensies are alloc t,ed to the otherfiincti'ons of the City, bas,,,(,*,d on, actual invoicing. Separate finaric"Jal staternents are provided fi:)r goveminenuzfl 'funds, proprietaryffinds, andliduciary t"Unds, even ttiough die fatte;r are excluded frorn the governinent-wide financial statements'. Major individual governmental ffinds and ma,,Jor indlividL11,11 entet- ise fb I I pri 11,nds a,re reported a. separ,ate columns in d"ie fund finitricial statements. Certal"'n efiml*natlons have been made as prescribed by, GMB,34tin regards, to i"nter-fiitid act i'v itiess, . pt-ty, bles and recelivable*,;. All I jf� intemal t),alances In tht Statemcnt of Net Assets. have been elitntriated except ttiosse reprew.;,,', ntl rig balanec* betwer) the g I It 1 11 1 1 1 ' i ,,!(,f,wernmental activitiess and busi ness-typ. e activities, which are presented as internal balanccf��, and elitninated 1ri the tota-1 pritylary g;<,,,)v,ernment coluirrin. In the Statertient of Activities, internal s,,,,erv,1ce '(Und tiave beet'i, efiminated,, however, those trarisactions between governm(,�,,,,t�ital,�itii(,,I busitness-type ac,livities have not becn efirmnated. iWea,surv�oment 1"k)cus and&zs,is Ac"ffcounth�Ar On the govertiment-wi'de Statement. ofNet Assets and the Stittef,,mlfent of Activifile,"!"i, hPoth governmenufd 4tind acti'vifies are pre,,:seraed, using the ec(,,,)tiomic resources measurertient fi,,)cus :cftnd the accrual baslis ofacc-,ountlling. LJndertheaccrttal ba.,siis of z,iccounfin,�!,, revenues are recognized when eame*d and expensfes are r(,*;c(:)rded Mien the fiabitity Is tricurre(J, reg rdleszsofthe fit"TtIng of the cas,-h flows. Propertyof taxe are rec-ogriM as, revenuefs, In the year fbr which they are levIed. (.3rants tzind siniflar iterns are recqg,,nized t-,,,is rfevenue its, sofo, n as all efigibifiky requirernents iry,iposed by 'the provider have been tnet. 1'he City gg nerally apphess restricted resotirces, 'to expensies incurried be"tbrtfk- using unrestricted r(;*.sources 'whenboth restrl*ct,,t�(tai,�idunrestr"lct,(,'*.,�di,�iet assets are aval able. 71w City hafs, chossen not to ac-;crtle the,*, iinterest payable of generid long-temi debt at year end. "This pracfice rttst,dts 'in interest expense reported fi'),r I It 1 11 governmental activitiesi ott the statement of activities to equal the interest expendifture on the staternent of revenues"i, expendituress, and changes in ftind bahance. Although,, t1iis is conwtry 1 1, Is 1 1, tofitill accrt,,tal accounting, 1.1"te Cityfi,:,els that, it i unrm,aedal lin the presentation ofits financial statCITIent. Fund F'inancial,,,,"S"t,a,tenients Bzmh (,�,,?f Presetiumon 'IV 1, und financial suiAeffientsf, of the ('11"ty are organ I ztfk� d 'Into t4nds. A fund lis; an independent fiscal and accounting, ent , fty with 4fx self - balancing set of accountsi. Fund accotinting se,,grq,,,zatcvs.- finids, according to thefir intended ptupose and 'is used to aid managellierit in demonstratit'lig coinplig,,,fince with financt-related legty J oand cotraractual proNji"slons. I he minimurn minfiber of''I'11ndsi, i's maintained consi'stent wid"i legal 4atid managerial requir, rnents, Funds are organized into thre categg(:iiries.- governryiental, proprietary, and 40 50 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf NO"ITS TO FINANC."111,AL STA"' EMENTS fiduciary'. An emphasis Us placed on tn�ldor fitindis wlithl'n the governmental i'tnd propr"it�L,,,,i/rycategoric�,,,,s-. Each m "or fbnd is 'i IV display in a sepa,rate coltimn fin the govemmental funds statenwnts. All of the reinalining ffindsare a&g&Y-reg,,ate%(.J and reported in/ a single column non-mijilor tiundsi. A 'tbnd 'is c(.,)ns1*dered major if 'it, i's the prirnary operating 't,""4nd ofttie Clt',y or meets the followling, crtiteria,*, a. Toti] asset. , fiabififies, reventies, or expend of that 'I'tid't"vi*dualg/(,,,)vern't'llent/i'm,"II or enterprise filind areat least 10 percent ofthe corresponding tatial 't"i)r all hinds, of that category (X,, t l e"and b. Tot I assets, fiabartles,' r("wer'),Uetf,;, or of lrliat individual governrnental orenterprise fUnds are tit leitst 5 pet-ce,,nt of the c�:)rrespondlng toutil for all governmentad and enterprise 11ind, con,,ibl'ned. Mc,,,,,�4czsuremeni urigy I Governmt,,Antal funds are u ed to accourit f" r tt"ie City's general govemment acttt"es. Governt"nent I fitnd types use, the flow of current financial reS`0Urcc/1,,. me,ii,,.�,i�urer�rientf,c,,,tis and the modified accrtjal basis of accountling., LJnder the tnodlfit."d accru, I bast's of Y, 44, zxCotinting, revenues are recof",/1.?,Pzcj,/,d when susceptible to accrtial. (11.e., when they tzire mt%,,�,,isunable a"W available") "W,� urable"', means, 'the atiiount of die trans,,�acnon can be detennined z,,ind "'avallable" mearis collectibk,�, within tile otirrentperlod ors(:,,)(,).n enough diereafter to pay 11"abtles of the cuffent per1(:,,,A. I'lle Clity, consider%,s- all relvenues avalflable Ifthey are collecte/cl witlun 60 d s at"ter yL!, r-,,end. Exfen di'tures are recorded wh/en the related tbtW liabillity Is incurred, except t r un-inatured interest on general long-tertz"i debt wht'ch is recogniz, d when, due, and cert in absenc and clalitris andjudgments, which ittv recognized when the obfig,,,attions art ex,,1wc/ted to ➢be fil qti 1dated wit1i experi,(h,,,tb1e available financlial re,,.s,,ource;*,s., Real and per orial property, taxes, specl*al assess trients,;,, ctiarges t"k.)t current Iices,, i"ou.] 4iterest e tngs are st,,t/,/,,,s",,,c4,L,,�pt,"l'ble to accrual. Other rec:eiptisi and become mtu-tsurable and avallable when cash 'I's re eived by the C1t,/,,.y and are recognized as, r,evenue at that fine. 'ne Cityrecorded real and personad property tiiixes and assessnients levied fi,,,irthe COUITent y-car as, reventie. 'T*axes, and asse, sments renlai'ni'ng unpaid ai. year, -end and not expected to b�e colle ed s(,,>(.�)n enough therei'after to be a flable to pay, obligations of tlie current year were recotAed it dettr,,�rred revenue, with a cor-responding redtictio/n in/ revenue,,s, as va) 1 1, d asse,sstnents collected fin the requir,ed by, nerallyaccepted accotinting principles. In addlo"on, prior period definquenct. xesan, a .. s current period, were recorded as revenue in the ctirrent perKA ass required by gencrally accepted accounting principles. Entitlements arid sliared revenues Ai;tre rccorded at flie time of recelipt or eadlier lif the susceptible to accrual criteria are met. M Expenditure d/riven grcints.,, are recognizwed as reventse when flie qualji,�yiirig expendiujr(,,x,,,,ss have 1>eeri incurre andafl othe rgran't i requirements have, be n met. rlie C14y reports thefiollowting major governtiil ffinds "I'lit General Fund is always a major fitind. 7,Fh1s, 1"s the Ciwi ty's prinlary operattingfitrid and it accounts forall financial res;ource.4,-,;,,, of the Gly except thoss, requi'J"red to be accountex:l tbr in other funds. 'Pie Contatunlity Development Loan Revolving Fund was, established, to account for the lending tand repc:,,tyment ofmontes to bust'ness(/ns, and tndtvtdtta1sfi,,)Ir pro" roved by tf 0 10 , tyimun"ity Developmeru department. jects app ie City s Co I I'lie 2012 G.O. Bond Refinancling Fund is a debt service t"Und esstablill shed to account, 'for the resources accumulat�d and payment.s madefin,' ptincnm ipal and interes-t on tlie refinanoex] 2002 G.0.8: (,.)nd iand '2005 G.O. Bond (Fltvx, Svi,,tioti). SID 344 is a debt servl'ce hind established to accourafior the resources, accutntilated and payments made t r principal and interest on the 10 11 A., year bonds sold to finan",,,,,%,,,, the c(:)nstruction ofthe Old Sch(,)(:,,)1 Station, Industrial arld"T"echno og 1, 1 y Park. 13 51 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf CITY OF KA11SPEL1,10 N0`f*1f:*,S 1`0 F/[NANUAL STX`,1`1:. MEN S 0 Proprietary, funds artA, accounted f us`lng the accrual basis of accountling. Thesefunds �accfountfbr operations t1tat are pritt"wrily financed by user charges. The flow of economitc resourc s fbcus c(:,mcems determining cositswast,ii, mea/n,,,,,;; ofra-alintainjing the capita/fl, and management control. Revenuesf, arfe rec(::,�gtiizx,,d wheii earned and exj)enst,,,.%,,,,s are ret,,(,,",)gn1*7&d when, lincarred. Alk),cations 0 of costfs, such as depreclaxtliofl, aire recordt.*d in pr(.),j,,iHe(tary t Proprietaty fijnds distinguish operivoing, revenuess and expe,,nses kom, rion-operati rig Items. Operating reventitt,,is and gerverally res'ailt, frotti providitig serv, tees and pr(:Aucing Wtrid delivering fgoods in wnnections with a proprieuctry, f"Und's prIncipal onf.gt 'I ,(,Ang operactk,nis. The prlinclipal operaiiing reventies t r enterprise 11inds"i, are charges to custorner. f(,,),r 4sales and services. Operating expenses 11')r enterprilse fund:s linclutie the cost of sales and sie*rvlices, admin"Istratt"ve expenstks, and depreclattoNn rl orl, c itat assets. All revenues and expensies riot rneeting this defintifian are repot-ted4as nort-operatg, revenues tuid expt,,tf,,nse*s,. When api it A restricted arid un/restrllcted resources are aval'flable f r use, lit is the f,tt s policy to tisse, restricted resourct,*,/s first, (hen ifi/tirest6cux] resources as they are, needed. "llie Gq, reports, t o fr lHowing rna . or proprietary linds: J , � f The Water, Fund accounts f r tfie activitle of the 0ty's water distribution openittoons. The Sewer Fund account,,4,,�,,; f r d"'te activitles oftile City 11 s se,lwer colle, tion and treatrnent operations and ltwludel�sthe stornit sewer syste'rn. Fiditictia, r I y,, funds acc(,.)-,unt f r assets held by d"te govemment in a trt to capacity or its an agent on beftalf of others. he agency ftind is etistochal tin nature and does not prcftssent ressults of operattions or have a, rneatsurement f" us. Agency flulds are accounted for iisling the modified accrual basis ofac/c/ountl'ing. 1,11's fUnd, 'is ttsedto accountfor assets thattlw Cityl"toldsr. ,. in an aggency t ct capay. j A�,;', a general rule the eff ct of iMter-ffind actilvity, has been elliminated, /kom the govemment-wide I nancial statfernent. , and the 6 intemal service flind, have been absorhed pro -ratably litito goverri,,iiietal-tNrli,ea,,i,ld bus i [less- pype acti'vate, on diegoverunient- w ide financial statements. Exceptions to thisg, ,I I zeneral nde are charges tiv servlices betwe n varlious tiunctions ofthe government. E hinination of these charges would distort, the direi:t costs atfid 11),rogr n reventien; rep(�:)rted f r the varlious f"unationsf,,, coticemed. An annual appropriated, operating budget 'is adqate d each fiscal year f6rthe general fiiind, spe lial revenue fund/s, debt fsiervilcle, f1inds and capltal prlojects fiinds on the niodjfit,�.d accrual basis. In addiltion, a budget is adopted, kv the enteiprise tand hitemal se%tv* �,-, '11inds on a fidl accz�wvd basis. e approprliate*d budget, is prepaired byftind, t"Unction,and f rthegeneral f1ind and c naill ., , I ce oftier fuinds, by departmerit. "Me final budget is legally enactt;od by the City, Council, after holdfirig public heartxw ng�.;, a. required by Statestatutes, and withfm in Rx-ty-five days, ofthe State providing final shared revenue figures. BUdget appropriati41 Iv on transksrsniay b inade een general class-ifica,tions of salaries and wagcs, maintenance and operation and caplital outlay. Reporte�d btidgetarnount representthe i i originally adopted budget ta.,nwnded by re,.;,;,olution of the City Council. It, is management"s rc,,tsponsibllityr to sew that the budget is f 11owed to the, budgetary,, litte Item. The C4y COla LUIC11 may amend a final budget �when shortf 11s 'in budgeted reventles rc*x4u , ire reductiomn ns in approved appropriations to avert, deficl't spend" when savin& resfsult ffom uniii,.titliclipated adju,,.s,t,/,nvn,ts1n pr(�Jected expend 11 ttires when unfa, tit 'le), pat, Ow.uti t, e or f deral monies are rewceiv e,d,,,, or wfien a pubfic emergency occurs, whlicti cotild not have been tk,)ress en at the fin'te of' adopt, '10111. The City Manager 'i'IN s ggranted budget arykendment atithority, R.)r the expendilure of funds firorn debt service f"Und/s, enterprise fbtuls-, 42 52 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf CITY OF KALISPELL. NarES TO FUNANCIAL STA", MES 0 interrial service tbnds, trust 1"Unds, t"Wer I atid state granLs accepted and approve*d by the 0tyr Council, special as.,"'sessments, , and donation. . 17he procedure to amend the budget "in to, tal can be made only after the r. City prepares a resolution, ntfoe, 'is published ofa, public hearing, and a public hearingis lield iti ac, ordiance wftl�i state law., All material budget en net and trattsfL%rs during 1"Y'' 20121. are described below-fl, Governmetital /,"unt/ls Die Cilty Manager atnended the Courtrit'd Apartments dekbt service fiji"id by the $179,380 requliy�'ed to pa.y offtht Board of 1--fou,sing loan and fif"'telfluate the trarlsfier of property to Comry,,iunilty Action Accepted a U M. Departinent of "I fransportinition grara ('hind 2951 ) aj id approved appropriation of the $97.000 to confinue f"itriding I rf"tCt3the DUCOt ImletentainPograKelfpal urtRe!;Jd1oNo. 551 ). A( ' ,,)'n9o2oMrti$nppo o,mcceptei 8,podtaowerett Buff lo 1-1111 Golf Course and I..�iwrent:,,e P, k related tos.,,,,eats; nal flo/(,::ff�,(Jjng (Rensol ut Iion No. 5533). nd purehase atfid ph,,tnting of ("Ity. Acc<:.,pted a DNRC Grant (f"Und 2600) and approved *Iticrt�,,,,%,fAis*lng''appj,,opi,,�tat'iotis by $2,,390 to ffi 'A 1),(/)ulev,,i/t"d,t,,r,ttt,*s (Re, olutlion, No. 55,34). Accepted a Community, Development Block Grant, Nei1ghbofrh(,)(-,xf:J Stab *11 lization Pro rani, (titind 2.991) and approved 9 thin the Clity of appropriatKn'i of the $1,500,000 to ass -list Co, mtritinity Action Pattriership fDlr irithe purcha,.�ffwfing offi,,)re,,c1os,(�;,d hotnes, N,vl* 1, f Kalispell, to be sold to qtialiffied tiouseholds (Resolution No. 5535). Accepu,:,d a Hathetad Elect-ric Cool,,wrative o,dup 1"br Safetygrant atid approf%red appropriation ofthe $1,7'40 to partially ffind ren,o,v,jiations needed tbr the W(xJ1a,nd Catnp Center at Wo(,,xfland Park (Resolution No. 5536). Pit sed Rt, olufion No. 5546 efiitn Inating transportation Unpact, 1`�,,es and ati'thori zing the reimbursement of transpf rtafibn impact t,` es 1n, the arlIOUnt of $144,07.7,"'.. Ras,,sed Reswfution, No. 5547 to the "'I"ax, Increment Urbari Retiewal Reventw Note (West Side "rlfl, Series 2012. Ttilis $500,000 revenue note t"Unded (2) capilt I projects litiside the West Side TIF boundarles, arid e/s.-tablist"'ied a $300,000 capliti,d pr( *ect ffind (I"i,ind 4188) and required a /tiiscafl year, Mry 2012 $6,000 debt scry ice i4iterest pi,,,qm,,ent (ftind 3188)., Passed Ordinance "No. 1709 dissolving the Kaillspell Parking providi'ng R)r ffie assutription, ofpiarking commission f,bnctlions by the K',,allspell 'The disssoltition of ttie K`,ta1jspc11 Pi-cirking Commission requ"Ired an iincrcase;d budget appropriat'l'on of $61,295. Pas4,,,wAed Resolutlon No. 5566 ratl'14ingthe issu, cc and sale of general obligation reftinding bonds, s;e*rjes 20114"22, �vftnd authorizing thert:f"Unding of the Cl*t,/y*s two existing GO. Bond i,,4ff*,ssues. Redev%,ming existing G.0. B(,,)nd/s required increasing appropriatilions by $4,200,158 in'the debt serNrIce ftinds. EM 53 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf and Net Assets or Equity L Cash, Cash Equivalentsi,, and fnvestments CIT'Y OF KALISPEL.I., NOTES 1*0 Ffib, NANCIAL S 17A71"EMEN"I S e City's cashzatid ciitssh equivalents are considertA to he, cash on hand, demand and time deposits,,, governiment ace awities. botid. and wtarrittits-, andinvestrnents, widithe Swte of Montana's short-terrn investment pool (STIP). 'T"he cash resources ofthe 0 individual /fi,tnds are c(::)mbirm*,d, tofion"m a po(,,,)l of cash and Utivestments which 'is nianagred [:)1y the City Tr ZU!"W'Urer. In,vestments are carnedat cost, which do s appromynate t Ir value as described in Note, III, A,. except for investnrients in STIP and p i articular bonds, which are reported at tiinr value. For ptirposies ofthe statement ot"ca.�;w1i flows, the ent, rpr1se and intermt) mic(zli; ffinds c(,,,,,,)ns1`deral1 ftind (Including restricted ,,t I I I ,t ssets;) held it'ittte City"s cassh management poc.�A to be casti equivalents. 2. Receivables a, nd Payables Transactions betwc,;,,,en funds that are rep resent, ai ti, �ve of lenditigg/t,)orrow ing arriangement outst,,andt*n,gattl",ieei"idoftiietisc,atc,,a,ral,ne retr`�mred to as eittier intert"iind rectivables/payable, (I.e., the curren't portion of interffind loans) ora&tances to/ft,oni other/fUnds (Ii.e., the not"i-cur"'rent r,,,wrti/on of intertimid loiiins). All otlier outsitandling balances betweten f1j,nds are reported as,., due u,)/kom other ds. Advances between 1"Und. are of t by a ftind balarict reserve ac, ount iri applicable governmental fin')ds �to indicate they are 11(:)t availablef r appro,priat"l(,,,,,ti,,,c,,,irid aire not expendable available financial rescm/rces. Propert I I I I 'I x budget ,y tax leviies, are sext witliin 1" -tive days of the State pr(,,,)vid`ng shared reventle figures, in connectk:,),rj w'th the proc,ess. Real propc�*,r (;.�tnd cet-utitirt attached persot"tal property) taxes arebilled widtinten days after the th, ird Monday lin October and are due "in equal 1"nstiallmems on Novemt), r 30 and ttic followling May 3 L After those d, tc , they beconit deltinqtwnt, atid a het I is filed upon the property,,, AtIer tliree; yetirs,,, drie Ci ts I ), may exercise the lien, d ta/ke title to the prop�erty'. Special assessmet"t ✓/ are billed 1141 two equal insitallments', due Novernbtkr 30 arid the fi),Howling May 3 1. Personal property taxes (other timn, driose blifled with real estate) are gz nerally billed no later than the st*, ond Monidi,,ty 'in Jtdy, (normally in May or June), basead on the prior, Novetri,ber's levies. Personal property, taxes, other thitn mobe 1-tomes, are due thirt. 'I y (Jitysi after b"I'llitig. Mobile twornetaxes are billed in two halves, the,,t rst, due duirty days- after balling"; thesitTond due September 30. Ttie tax billings are considered past due atter the respective dtie datess and are stjl:,Ject to petuatty and Merest cl�mrp! s. An altr. anc tbr uncollectibk%; accotints wtas not mal"nutined ti,,,)r real and personal property taxes, atid speclaIrol receivable. "Fhe dire/ twrite-offnietho Is used for these accounts.-. A reserve fbr estimated uncollectible account/s receivable is maintalitied ti),r the 'Water Fund and Sewer f'urid. '11"it ress-erve balance are as fi,,Alows for June,30, 2012., Water S 11420 Sewer S 18,540 3. Inventorio, and Prepaid Itleins 1nv,ento,rm/,.,4,; R)r materials and supplies for govemn"iental fund types are expended at the orne of purchase. Enterprise Fund A, inventory ofmaterfals, tand supplies are vr,,(alued at cost trid the First -In Firsst-Out (FIFO) mettu",,xi I's utifizet. Cerv"�Ain paynienv.�,,; to 0 �(Jc , vendorss reflect, costs applicable to flAUTe accol,inting pt,,:rk :,,,wand, are recorded as prepaid jitenis. 44 54 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf 4. Restricted Asswls CITY OF KA1,4SPELL NOTES TO RNANCIAL, STATEMENTS Certain proceeds of the Clty`s enterprise fin"'ad revenue bonds, as well as ",�*rtatn r sources sset as'We f rtheirrepayrnent,, are cizissitied a restricte�d asset. on the balat'ice sheet because their usie i's 11''mited by, appficable bond covenantss. When anexpense is incurred ft,,x which bod"i restrictet.,d and unrestricted net assets tar available, 'it Isi, the (`1'4y's pollcyto first applythe restricted 5. Capital Assets re 4 Capital as,!,, -wet, whlich include property, plant. and equiptne"tit, are reporttxi in the applicable governmental or busiiness-t",yrpe activitles cohanns Iin tine govem,ment-wide finane"121 statement/s. Capital ass',e,;t, are define,,d bydiegoveffirnent ass, casset'! with wi 0✓ *flal, individual cost of more than $5,000 taind an estlimatt��,*,,d 'us0bl hific in excess offive yeiiirs. Such a�,,ssets are r(:,%,cordC%,d at Int I I I I histoncal cost or esfirnated historical cost ilfpurchased (,"),r cton, tructed. Donated capital assetss are re ordexi at estimated t' ir market value at, tlie dat of donation. As re(juired by GA,,SB, the Clity of Kalispell has retroactively reported its; streets &,,,i part ofrel c.ti,pital asiseLi linthe.financlial reports. I r fiscal 2009. More detailed infi),rinattion on the City 11 s streets- and all cap.tad assets cttin be ftwndin Note D. Capitid Assets. A "Fbe costs, of'nortyrial rnai'Menarice and repairs that do not add to the value of the zassets, or extendav;set lives tt not capitahzed. Iprovement's z,;tre caplitaltz, d and depreciated over 'the ren-taining useliul liro ves of the related assets. Mi�l*or outlz�ys fibr caplit I J asset. s- and are capitahze-d a,, pri,::)' jects ar constructed. terns1'ricur"ttd during the coristruction phase of fixL assets is reflecte,,d in the cap ita H;,,r.e'%(J vahie oftlie asset constructet,"l, net, of"'Interesit eatmed on tht inml vested proceeds over the san,,je i per"K.A. 6 Depreciation been provlided 1,`Z:,)r the pro,,jx,%,rty, plant and equipment of the C4 of"Kahspell usl'ng tht's, striaight Hine method. 7' llIL*,,, use"fid liv,s of these iassets have been e*,stimated as t'bllows.- Buildings 2",W-50 years lmptGoverne, rits Other ti, " t Ibuddl-rigs 10-50 years Streets 40 years Mactij,"nery,, veluicles 4itnd equipment 5-20 years to and Sewer firles,, Putrip st r t l sl 10-50 years W 6. Compensated Absences It 'I's the City's p/(,,),fi'1ey and state law to, eirnployees to awtitnulate a limited amount of eitrned but ur1(j,,s,(,%,,,d vacation benetits, ,which will be paid to ert'iployees upon separation ft,otn City,, st,,,,,rv1'ce. Empk,)yees art allowed to accumulate ctind carryovera 0 maxim,um of two t'itnes diet'r annual accumulati"on of vacation. Any vi�tcatlion leave filitne accumulated over this niaxTIM11111 carryover must be ttsied wittilin 90 day,,,s of the nem calendar yt:ar. There 'is r10 rells."Ariction on 't,,he atnount of'sick lemve ttiatmay 1,,,,)e aectimulated. LJpon separattion, employees-, are paid 100 percent of accumulated vac/att"'on and 25 perc4,�*,nt ofacttunulated sick leave. The hiablillit'y assoclatt'.,xi with governmentad fiund-type employL,,tes is reporte%d jnre iin Go%,�jertin'lental Activi'ties coluinti ofthe Statemerit of Net Assets. while the liability associate.J wid'i proprietary f"Und-type enip1(,,,),ye'ws is record j, I I I ed in the 'ttspe* t"ve fund and the Bus litie'ss-"type Activifies column of the Stattetnent of Net Assets. For dw purposse of reportg these cort'tpensiated absencess payable zirs,, curtmnt or noncurrent, tfw City ust,,�s a las-t in first otit assumption. LInder thlis &SI/SuMption, d te only compe'ns-ated absiences the City report ta, NrW:t are the fiabilities asso, iated tl etnployrc,,,�es who w1ill refire within tfie 12 months 'fi:)11ow't'n,g the fiscal yeat- her reported. M 55 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf 7. Long - Tet-m Mitigations CITY OF KA/I.ISPELI. NO"':fir LE"'S 1`0 Fl,"N."A"INCIAL STATIHMENTS In'the gcwerninent-wide financial sta-tements, and pr(.:)pr-Ietary:fitnd typesiln thel"itrid financlal staternents, long-term debt and other long-tern,i obligater ns arc reportedga.,S IliabIlItlesslit'i the applicable govemrnental activities, or proprietary t"Und type staternent ofnet asset,s,,. Bonds pIya,ble are rej,-,�,xx,ted net of the applicable bond prenijiutn or discount. Bond issuance costs,,, are exp, tised' when incurre.,d. 'N In the fund financt'al I'Litid t,'y"pes rexcognlzv� bond prems tarid discounts, �iu well 'a, bond lissu"ance Co ts, dt,jrIng flI current pei,,-iod. I'lic I iace arnount of die debtissued 'is repor,t,(;%dt,,ts, other financing, s(:)uirces. Premiums rL�*, ei'ved on debt 0 isisti 'ices are reporte(Jas other financitig source-S., wl,iilc d1s, ount, on debt, issuances are reported other firlancing uses,,. Issunce costs, whether or tiot vviithheld korn'ttie actual debt pro clkvwds received, are reporuxi debt service, exp-enditur(:!ss. 8. Net, Assewfisl und Balance Net, assets, in I(he 14 ide and proprietary I'lind fitiancial suttet�nents show 't I'te aniount of the capital assels less any I ,,:)verrtment wl, I I I outstandlitig debt to ftind then,,t as "Invested in ci'ipltal as -sets, net of related debt.Reistrileted net assets are t1iosethat have constraints placed on them ettlier by extemal pat -ties or 1mpc,)sed by law or enabling legiislation. 'I'Tte Clity limplemetited GASB StatemeAnt 54 fi:)r fiiscN,,fl year 2,11011. "rhis statement requires goveritn'writal t1ind baliances to be allo e ate:d to c,,,,, tegorl"es its flows: -spendable -- 1"'Unds that are i�iot spendable in fort'n (Ii.e., Inveritory),; Restricted — externally enfivceable legal rest "ct� � eist, such as scaae law! or bond covenants. Corntnitted — constraintf raially impost!.-d by the City wd Couticif bythe end of ttie period: Assigned -- cisitirai tit 'Imposed at a level below the City Council by thc reporting datel-I Uru,,,ts-sIgned -- remaining „al arice. "I I"Ie City, Counc,111 "is the lughtst governing body 'in the Cityand any constraints,; on t"itnds 'by ltmtist be reprorted as', cominitted if action is vaken bytiscal year end. NOTE 2. STEWARDSHIP, COMPLIANCE AND AC(','-*0U'N"VA8ILITY A. Excess of expendituress o�v�,,,er appropriattions For the year ended June 30, 2012, all ("."Ityfunds expenditt,tres were le)ss than or equal to budgeted appropriaviorts. B. Deficit Fund Balances -)011, 1""'he City reports tw Ftinds witti defileftttind balances at, June 301'... 9.0o M 56 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf CITY 0FKA1.JSPELL N01"ES TC) FYNANCIAL, STA"TEMENTS NOTT4 3. DETAII.sED NOTES ON ALoL FUNDS AND ACCOUNT GROUPS A. Cash and Cash Equivalents 'Investment Income Income fiorn p(,,,),(,)Ied 1"nvestmetas is aflt,'�,)cated to die individual f1mds' based on the Iiind's montliend cash balance� in rehitiorl to total po(,Aed Cash oslitlion Casti andinvestments ri,iay i nel tide cash at"id cimih Items- demand,titne, ss i invesu'nent/,,,,s- in the St te atid�, fiswal I a;ent deposit&, I Short,-Tertn Investment P(ol (S"T"'IP)- repurcit"utse q, vetnenvs-,�- U.S. gov'c,'%,,r'njvent trt�,*as-tiqy bills, t'iotes b<,)nds, attd ot'her trei,,v',;urY' f obligations such as state and lc�cal govemment, series; ("Nigations of c. rtain agericies ofthe Uited States such tsv; Federal lJon,"ie Loati in Bank'� and U.S. governiri-wnt securit., motley, n"tarket fijndsif diefitd trieetsi, crucr y ondlitJ0S. 111 'It Y 1"Otal City's (Priniary governmental and component unlits) composon of cash, dep()s'lts and jnv�c,,,,s,-h'nen't s at, fair value as of Rine 3 0, 2 0 Cash on hand S 31730 Cash in banks: Dernand Deposits 14,685,o/, 160 Bonds','J"Warrant s 35,329 STIP 1 51 1 Government Backe; Securities '0-0 Section 7-6-2,02, MCA, limits investments r1.public money ofa 1(,,,) 1 government, itithe foliow'lngel"lg'lblesr*.,,,L",-lr'lt"'I'es.1 (a) Urn'ted S'u,,'itcs governmcnt treasury bills, notes and bonds atid in nro t1w Unite,,(,J States trI.(,'.�azsury obliptpations, such as state and toc,al government serles (SL,,3LS), siepar te trading of reglstert,%,,,d intere*sit and principal ofsceunties, (S"FRIPS), or slit"nilar Un1tc,'d' States trea/sitiry obligations,, f (b) LJn1ited States treas.",,,ury recelpts nry in a ftwm evidencling the holder"s owrnership oft"bture Interest or prit"icipal payments- on specific LJnited St',z,'ites treasury obligations that, in the absence of'payment defiault by the L Inited Stah'"ws, are held in a spLicial custody account byzan 'Independent trurst company in a certificate t b,<')ok entry form witli i.t1r»rti reserve bank of New,, York; or (c) Ob It"gotioris of dw , fiol low i ng agene iewss of the U n "ted S tates, stib I I I I ject to tlie fit"triitations 'in subsection 2 (nxx, included)- 0 11 federal hopie loan bank ) (11i)t n, ational rriortgo ge ass(,,'),cjat1*0n* f deral hoaw mortgag, 111 gg corporiation'. ziuld I VfiWeral ter t"n c.redit bank *) With the exception of the assets of a local govenini,,tmt groupselfsurance program, investments", 'rnaynot have, a maturity, (late excAceding 5 years except when theinvestnient is tj.,,.sed in an escrow account to reftind an outstanding bond issue in advance. Sectlot,i 7-6-205 and Section 7,-6-12206, MCA, state tbat demand dep(,l,Isits may be placcM only in banks, and Public money not necessary fii)r "mnwdiate use by a counqr, City -202 may be place<d in ti 6 I or town that is not invessted as autborize "in Section 7-6 1 ime or savings 47 57 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf NOTES 1`0 FINANCIAL ' :one 1 �,v��„II' deposits Jwbtt. with, Nk d Ntr n �lry ,ns and ., a� ., aJlWs� W at,IN. t .c. nt0,t union A1 ,.te state placed c�P in eMcaagreements, ieemlnts it...nu,qk � �tn, 'in a St�ction 7-6 2 .I "rhe City r ,, tilts ,n ill hits, no in estt grit pollicy that t rttither firnit Investinent choices. The v vi N x. ��. ,. hi Il. �w. the +1 r 1... r f. , Jqy. ,i i.. p✓,F and � related Iv' credit .. iM � reported p, � I � and n NM+. �P I.. f d,.. lq. ., t�ff"�W,�tt �� tnit h � 1tt Nl �tNt:�tr� , their �Nttl � � t �N� � trt�l lt� 1„nl 1 � � 1N investment ecu ,nnq 1„ ,NI,,. J �� ,r„ „� li Credit „� u- H,m vN y, r„m ' a° i ' ' ail Iml 11 ,",!in � r� v; �� i �' ,. '�" � " /.. �""°�' � ' „� '" , :. the �, I n:. I I � ,� ,. , �rl � :' rt l t�rr Investment x� ' � tt A , r l�d it tt tt t , t g tht S � its t� June 30, 1 1 ,I Quality tt tnMAWHtIWaekMNN n� +nrlawarmwa+nna�aMaWIHINrpWfWMfKNdWa�wnaWMwfwtsa�igawnph�bNNNMnwNWMH14Wwrvrvw9lnt II, nnn✓ +�XVkkWNN Onnt Ass ed Backed 'N il Paper, f 9,12 1 Al Corporate Commercial Paper 2O90 t Al Corporate FixedRate , UI 23,609,565 Corporate a l e M 1 9 : P 1 1 3 Certificates of Deposit Fixed Rate mm Certificates of Dep/o, sit Variable Rate 416w232,t894, A3 Other Ass, -et Backed 2 o507,1129 S. Govemment Agency Fixed 596 Al U.S.U. m ey r 7 5 Money Market Funds nt � 9,31 0 Mioney Market Funds Structured Investment Vehicles 7�0 N, n� Po Siecuritles LendingCollateral Ir tool n WlYl1°rPM 0 Nl IIm.901N4W V11UHU�YM � �PIWIMWNNm f➢IJ^nre W!WI'WM16J tI Un v tryfinancial ciast ttnt; ts/i� t.«State ,. a t.Jb ntttt a� s Board tv f ent.tne tm are a .t� t nt N5 Fuller 1 w.Avenue vente NV: . Helena, Mon , nt . Cwstodial Credit Risk Custodial C..m eeu t µ� the risk wk that, t, in the event ..a a ati'ww np tre, the g ;e,eI t's 1e" . t�"iney not be ,teto ml ,t.'Die . W t of Kalispell I e�not itae �� deposit nll c.t'br cIs t credit rn t sn All N I: IFe r N,t� w � e �Nl N t cost plus accrtied tewest� of,J une 3l l s �; t *I�.l� ,n balance e a exposed ttnN t t tl a r,t t risk � ° , lows �'', , Itl ��jl� nir row �q "' `� ,� �' 1 �: r �* � �TM � 'low .si�vw �, '. r I� wl>� w f �. 0 V� v �s � , N1N11� t oty,. Ag-co.tjnt Balance Insured $ 250,000 Collateralized nN -Collateral ill b y the p l gt g an "s, trust Total� 160 Deposits �, t vent ; t, t of n t1 t�1 t 1 1, 35n 58 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf NOTES TO FINANCIAL S0 Y,TEM.:E N"PS' states �; ,a :.'. ,,...,..,.. ,.... ,:,. n of ,.. ,�.W..�„' ,� ,....,, security f. J,.:. ,..„ Section iW. ,, W i VWp, �' i r t � �". p. . ,. 'Nk I ) � !W ', that , . not MCA, i � , .p G W „mni, p, �i... uI o , ilnl. ,' the deposits �Mm,l (il h ,gym, ./Y , 1 r, '.. , iF' f v, V ,: V" r I1� o,, y� I ny t W 7 t to t The ,, r u r� cur n o ✓ r Irt sits f g'� , �" "';' ,N'�„' ::r w � - ,� ,.„'fib according �� ppµ rt c. aN � Ir r law �" J „(�f f,� 'r: � such . ,� '. : ,,, : �i , ✓;`� ��'', „�y, : ,..., a extent .,.. ...: of I,r tet%x s r r or g t I ,� i s Wi f r n W n� r r✓ surd portion, t ,ry the t t, 5,1� of such deposits w f the �W �strw t ti J � hichthe d,, ✓W- t �I . ✓ has a, net worth of .total assets rt:� w ,/ a%or e- o ( )t-%> t r Vt :tl,.✓t �r ;c 1 !te deposit is e« sitMmade f e n, a x et worth/ ; ' t�, i.�,seats r t,i r .s than J . Irv, �,� ,�� In�W y City �� W W rtf, 12, , f frt � it y �i m� � held ; ... � �o � i, exceeded l�, � ✓ e ,;� � I r „I� V V ro , ° e e ,,it . �� tr,,�o ✓�r ti t �.i ✓�� r r ,� nst t � 30, n��J� � ��r�i the rirW �, »IW tt� statues. C7n ✓ , iCrediti lsk 7inn City o, „� ,+yip. , : ,W W; �W. W� ✓�o✓; . ... ,.nuw , Y, �, , �i� m, , mim ,.. ✓ .. ,, r ,.. ,.. '. a... a.. ,na. ,..,, .m ". �. ,f r.. ., ,r „„ ,.:' ,.. �. ,r ..,..,.. .... � r,�r ... rt �. m. ... � a .,. s.. » �r,. e,. re ,m ,, r �f.:...... r., ,: ,,a '� , "�. I . JW, f . ,!�` o rtp, � .. p. i i , / , , i n c ,... nlrt. ,�. ,. � ,a .. n f �". ✓,i � , xx, n ,lyd r b Y : r w W vW I kY.. iv fu *, , 4rv. NM, i✓ +�'... r ,e, � t . ✓ f places w, ;fib ;,' i , „� 6"�i .. r, , : r : , . , 1, , i � f a r ,i f,pW w t.fJ t t.iJ ,ter t� s i rJ �,,t i 1iir �tr, i credit rdt risk erc,,t , fi:, w tH r each V ,:,.st,,t ssued that p✓ t issued orexpliciftly farotr f ,d, the U. S., df ,r nmet rvfev n mutual ` r extemal investment ,,; r; other pooled inve/st t Interest Rate Risk a..r. ✓. i a I o Jn ., e :, ,, 'i ei� ai ;o 9 ...:: iif , ,.. that ✓� ,+.i ,.i rt f, 'al; �.., r,.,il" ,,. irr. 'kl. fi i,. ,:. ,, ,.„ ✓i :'n4, iral .. /;. ,ui .ail ., n I�� "I"fie �Y.,�t, gin, i ✓I:p� does ,� ° r � i t ��t�,�t �Ir tt t✓, pJ�t,�t tt,rt� �� tr,�✓� � i �Na�tt� s �iW��✓tr, "nW �W nWµ ,0,,. Sri ,xpV;. rtW. ;wW iW ub W W! ry J _ � J � f W M i � �_ � � J ro � , � n , , f y W,, ,; , rt. y , rt ✓ w„ �6 �In �� ,- t t r value rts��W� rtr�iir,� ��g t�Wt rtp�,�fa e� g W„� � t i �a�t�rt� .�` June 30, 2vi 12 along with t t� mlated tere t rates and maturity dates. STIP .%,` rvaries 1 Federalt gage Corp 1.750%lo,000I,000 Federalrt p10/19/16 210OOtOOO Federal Home Loan Bank 3.250% 3/28/16 300$000 Federal National Mtg Assn 1.500%2 tOOOtOOO Federalsn 1.300% 3/22/1 FederalI ,, 100001000 . Mortgage Corp Federal :'.. Loan 1.500% I; ,: .':...N:. 00011000 NationalFederal . 1 000 S&C Bonds W vanes w Total329 f Oo336840 59 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf B. Interfund Receivables and u bles T '" Of K.,,,I E1w.1, NOTES „TETO N. `CalY r.:L STi"FEEN:.q''S "nie comp, osition of interfiind balances a. of Julie 3 2012,, � a, follows. - Operating r ;r l c fiAlow,, n, analysiiis of trat'isficrsin and out,, during Fis , Year From { Health General , o Governmental Health Parks Streets MACI Grant Parks - In Lieu GTEP ii O.. is 2002 G.O. AGO Refunding ,. O I012 G.O. G.O. Bond G.O.2005 2012 Bond RefundingOld School Tech TIF Old School TIF - Debt Service Old School us TIF Old School West Side TIF �, Special Revenue .. its F nil ServiceGeneral Airp, ort TIF - Debt Service, Airpoft TIF - Special Revenue General - Major Govern mental FEMA Grant - Major Governniental DUI Court Grant GeneralemmeGrant General - acGovernmental General - M4jor Governmental Enforcement TOTAI. In Amount PurpIciL $ 989 SIT Loan 51 t538 S/T Loan 9 7 SfT'Loan 1 t4, 41687 SIT Loan $ 3'9 -o,:.... 3,405 S AN, Operating 60 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf D. Capffal Assets 0 C17"Y Of"" K.A1,JSPEL1.,, NO"'FES 1`0 FINANCIAL, S`FA','rEMENTS Capital asset, actlivity for the year eride,,J J wie 3 0, 210 12 was, as fi:4 lows,:, Tt-ansjl b et, s vivett Nl fu n d typ iss In fisc:ial year '.7.11012, the Clity of Kah'spell, thru Ordinarice No. 17019, di'ssolved the Kadlispell Parking 0:m1tri liss foil. "' fie Parkling CommisslNII ion h�,i been operated arid reported as a dlisi,,creetly presetited 1)usi*ness-tyj,,,),e lc(i,��mponent il,irrit ofthe CltyofKafispell. Upon, dissoluti",on, all Parkling Cornmilssion a/ssets were transkxred to and became propert/y, ofthe City. 11v assets' transferrc/,*,,JJ, had a depreclau"�xlvalue of $26,570. Capital assets, trtttnsf`�Airrexi tiorn, busiines;s-trype I'linds to fg(,,)N),ernment;,,l 1"iindsare tl�,.,),,t reporte, in t he Stiiitefylent of Revenues, Exp, ndttur(,;�s, and Chatiges 1"A Fund Baltancts, there hias betat noflOW Of CU!"Tent f"Inancial res(,,)tjrces. It is reported' as a turn t' rfiwr both sides "in the Stat,ement of Act1*v*1t1*C!1,11l';. a 14"l-rice Balance Govexnrneni4, Acltivtfies, 'Jul —Y. AWxth�orls Cx,,,,lllo1/k>ns Tranlers, .-lAA Ir >0,4JUA:Axx1S "We Ca, p1i'M a/marts not Ix.,sing 1.a,nd $ 2,551211" 9 $ $ $ $ $ $ 2,552,209 C"OnsA ruclion Itri, Pr,(,,)jns . . ................ IWwWUNr Tota,f cligital assel/s rx.A Z7M7 . . . . . 41"765 Capittal assets being Nj Idings S 19,901,454 S 393, 7.513 $ 76.764 $ (1,010,023) S i9,361.Wj1 Improve ments, other than tx,,xf1d q,; ss, 15,0135, 21 18 2 2 1, SK) 2 21,042 15,278,3302 t4whi,nery and 6,649,490 25 Q, 073 123,794 (57,540) 6,9`74,817 Infrastruclure 8,0419 3,28 oqi Total capita-1 asm",As being defroc:iated 122 CP05rmo 5"40wmmnW ,;low $ 8' 8221 1 _L__ 11 44.8,',']L( J $ 76� 0.uWNu 3 Less ac imulated deprewiatim for: B4,911dings, $ (7, 158,, 556i) $ (6-re $ $ D,.$ nr $ 572,,)47 $r. (7,264,977) lrnprovemwts othw thiin, (5,( )OXA, 1) `50 ((5 ,, 66,S) (5,746, 769) Mad,vft— ry andequtp ment (3,8C)2,88 7) (4,39. 43/5) (9. 6, 6(l)(3) 49.452 (4,289,476) Ifff ril strucIl"re U HA ML2 /Total tactximulactead deprrx4atfon 1 7, W97 M —0.111 ",3 77.9 3374: ��,U� j, qq6j,,,Y,)(Y _ #"a fm I, J."I", , I,) —1,,,62 C_ �.,, JNJN37 989 9`78IJNI1 Totfitl Cutpitill asm.''! Is tf,*#4nq, net 8, 7 jil 6t), , 4 .0, liSJ3 4 1851,3� 76 764 4, If 1 J, 2- _0, (l capital assels, neki, jj$ ,K) OW,,49 ry $ 48230 $ $ Bal,ance Bahin", Internlat sexWee funds, Additions COM, f1bution's R esta to ts Transfers C)fefducl June DaLa, Proce/s,01WI,') $ 18 3, iS, Ef) 1 $ 15,408, $ $ .......... . $ (26,51 q), $ 17 2, RM, I ems ";xcumulaterd doix raciafi cfxi 't 1, — — — —11- ILOE 11 2Nq I � 1, j 2 S 2129 ......... I %,A Iritemal �ce ftjnds,,;*,,tsse,1s, rivel $ 143 1,�, �L l, ....... qL .. . . . . . . . . ........................ . . 33,6 $ . .... $ f ....... ....... .............. "", ......... . .......... $ 47,351 Govet-riniental activitles" depreciiatu",,ni "%,as, let"taxt-i-tred, ofthe priiiiat�y,,&�ov,emtifien'tas fiAlows- #,W f., A, Govemmental Activities - RE 61 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf Cl"TY' OF KALISPELI 0 N01""EST"O 1"INNANCIAI.. S"TA"'I"EMENTS R.- alance, Deductionss, I Ba lannc* Busineas,ttyk,q actly'diers'. . ..... ... .......... 2 011 Additions CD, nt d b tit i ons Transfers, June 30. �2012 Capital assets not txwinq depreciated: La nd $ 1,6591% 19-4 $ - $ $ 2,694 $ '11,701,868 Construction in j:�roqress 1201,911536 182.137 am~ ...J37 .281, OWN" ..6Z . 2.73 945 C depreciateW "Irotal, capital asseats, not b, �inq $ '1828 '730 $ 182 137 $ $ 'i 0 Mw $ 1975 833 Capital assets being depreciated:' Buildings, $ 316,731 $ YimIU.$ $ wnr $ 316,731 Machinery and equipment 1,800,349 235,684 (3,57.4'70) 1,678,563 Source of supply 4,648,725 (2,886) 4,645,339 Pumpirig plant 3,535,443 0 3,5, 5,44,33 Treatrnent plant 37,E1,2.7,292 42,22,411 37,869,516 Transinisssion and distribution 48o,9,85,8,45 2222,035 87,523 (162,271) 49,133,132 General plant 4,a9,3,849 .5 1; 8f, / "I N '192 4,452,145 Stormse.wer, system '12 2pgIMpM�69 �314 YWNbWWM 4 1rewwNPoPoM6 8f 4, - 2 31 10,# 2fi. � L48 Total capital assets bering, deprefdated $ 'I 13 7`77 M $ 599 731 8 3 $ . ............... . ..wwwwti $ __J522 4, $ 113CEMI 867 L.esss accumulated depreclat on for, Buildings $ (2,22,585) $ (15,68 1 $ $ - $ (238,266) Mac.hinery atid e,,qui,,irnent (1,507,339) (151,528) 3556,414 (1,302,453) Source of supply (6OOfw2O7) (97,574) (697,781) Pumping plant (1,310,270) (109,100) A, (1,419,370) Treatment plant (11,55,770,983) (1,371,081) - ("JI 7,142,0 64) Transmission and disthbtdion (13,462,531) (1,3565,570) '106,043 (14,713,058) Geryeral plant (2,495,123) (187,8" (2 � 672, 997) Stofrrn sewer system 3,IN 11 !0) 3 f �34/, 1 8 2, 6`7 3406 Total X, CUMUlated de, pre, (10-iat ion 3 8 / 44, 882. 33 88:33 L '.L.L3,572.086 $ $ 4,62,457 lw�w $ 12' 2 O� Lj"I 592 01 Total capital assets in depreciated, net Blusin ess.-type activities cApital assiets, net .... $ �w✓•nnnn•HtlPNIfi1N wVWWVVOV iw9UVNVwIWOW u>wwV.YHN'A701M0Nb W wwV !NVNAbVA�MDwY.N 75 2,94 66.5 L.L9 2 C .4.7'2 355 $ 7 . . .$ 72-'A.3L9.855 77 mm.wf M 91.5 $ 79IN<u8) $a 7��oi ioo ""w'" 3 mnri 95,Ili 012) Balance, Balanc,.e �,xxn )�one.,,r�dUn�it: 22.1L:I Additions Gontilibut ions Deductions June 30 2012 Parking Coommission asse-ts $ I 23,79M $ ('123,794) $ Less accumulated depreciation 8:9, 17411 413 96 606 Component unit, assets, tiet, $ 34,620 $ I 32L aawumlaaaaI� $ L27 I L M� _-i 8.8 �mam$ B Lis 1"I'less-Itype activities depreciatur ion wa. charg,,,F, M to of the primaqy governinent tas follows: B q * q sin 601vifies Airport $ 1,00t832 Water 8,48,t 104 Sewer 20474,121 Solid Waste 149tO29 Total Business -type ActivIties $ 3,5'7208'6 M 62 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf EtA)ng-T' .,ertn Debt CIT"YOF KALISPEL.I. NOTES TO FINANCIAL, STATEMENTS During the year ended Yune 30.."20 12, the tiiflowing chan,,ges occuffed in hia,bilities reported in long-term debt: Balance Ba lance, Due wfttiin Additio, ris R e, f ,4,t i on s J t, j, n e 3 0, 2, 0, 12 Gove;',nmental Activities, G.0, Bonds $ 41,450,0(),0 $ 4, 11145 $0,00 $ (4,45Q,0( )0) $ 4 t 14,5, 000 $ 445,000 Revenue Borids 1 �,325,,,O(X) 5100,1,000 (125,000) $ '10700,000 '130,000 Assesswm eints 4t0T7,194 5$,792 (237,657) $ 3,845,329 3 �, 9: 6, 6), 6 2 Contract, Dt",.o/bt/Loans 1,985,432 170�79 3 (406,019) $ 1,750,206 26604041 Intermediary Program 697t, T, 34, W 251 4c (, 9) $ 671$985 25,368 Compensated Absences 987,423 264 V2 7±95 14,0ma 00 Goverr"if"nental Activitic:m Sub,rotal $ 1,' ff]L,08,5 auw1 5mw�wuu7. ftrrvrew,278,01,25 .� .1 015 1,277 4*34 Internal Servicf Ft,inds." Con'i p ensai"ted Abs(.w,,nfc*s ................... 45095 12-03 $ 5-2,,98NfSw Internal Servim4 Funds Stib ,* Total $ 4, 09RE5, $ 10203 $ $ 5,298 Bt,Ii si ness-ty, peActivi ties Revenue Bonds $ 1,348,000 $ (94,000) $ 1,,254,000. $ 946, OCK) SRF 17,062,000f., (98 3 0 0 00) $ 16,079t,00,0, 911 000 Corn pensat erd, Abses nce, s 275,027 5842 5 , 7 5 2 / $ 245401017 36,58 2 pe Activities% Sub 18 685,027 Business-ty $ *�__.. wGNawaWllr�I .Q 5842112 7 54e). awn "I $.1 - NOMM 0 *".M�ui , �.7 �81 �V 13 5�832.n Compensated A" sences 4 37,,1 L3, 7 11 $ 1.11 . . . . Li . Component Unit Sub'T"otal $ 4,371 $ $ L3 7 1 $ Grand Total $ 32,215,676 $ ,092,1 2,32.1,016 In prior yea rsIt'lle, IgWtileral t'ittlid wi,,,ts used to liquidate cotripensii;,ttedd absences."i and clairn/s and udgments. General Obligation Bonds - " he City issues general obfig,;,ifion bonds to provide tf`bn<,1ss tk)r tlw acqi ifisition and constnxftiotl of ittal fiacififies. (f,ieneral obligatimi bonds ar, dire t obligations and pledge the /full f, 1tim h and credit oftfieCity., General tt or capi IM, I 'I I al obligation bond,:s outs.-tand"Irig as of.futie 30, 2012 were a.s; f Mows. - Origination Interest Due Pnincipal Annual Balance, PU Pose, Date Rate Term Date Amount Pa If am e i it *wAw$wmwmm,03whw#004%-w*Jwwuwwnwxw-wmlwmw2m* lomwmw&Axsmmg%mww* Pool/Fire Flail Refunding 63113/2012 "1 %-2% 10 years 2022 $ 4 * 141 5,,� 000 vanes $ 41145,000 1"otalBonds $4,J45p,000 $ 4,4145000 2012 (,,'1`enet-e,,z1 M14',yalion 13oneL,,s',, X'ofiIndingo, On June, 28, 2012, the City completed a rel1inding of its t/wro g,�,,%.ner;,,d obligation bondss. I"he new bond 'I'ssue of' S4,145,000 wit/h, an interest rate firorn 1% to 2%, together with other, W.,gally avalilable Ibinds of the City, were ued t`Z:)r tile purp ose of reftinding (I) General Obligan"on Bond., , Series 2002 lin the amotint of $2,265,000, in"aturing lit'i the years '2.0 13 through 2022 with an interest n,,�,,ite of 4.6W',((,�'o, and (22) Getientil Obli&;,;�,,ttlion Borxis, Series.; 2005 (Fire. Statlion ��,O6.1.1) jin the amotatt of $1,820,00/0, niaturitig lin, the years i. 2013 throtigh 2020 Nvith, an, interest rate of" 3.94%, axid t,,,,o pay costs; associated wjith I refundit,, s/ale, and issuance of tlw boi"xts. he procee4 s of dw Bonds, tog;t;,ther witti otlier legally available f"I; of ttie City, will b, us-ed, to provide 'funds to rest- fit an 0 irrevocable (,*,,,,socrow to: (I) pay interesit o, 11 tlie, 2002 Refunded, 'Bonds, when due- (".7.) calt. pay and redeem on ALIgust 3, 2012 J. In 63 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf II^ r 1,pn,1 fiY OF )A LS f ,�W�"E 1 nmd t mm>'l' ' u„ ,,,wET.d FINANCIAL s A1E`,S` .� w, ,qry, p rM i, vi interest tli i. , a,l .. I» ,:lain advance* (/ N H% maturities, the r '. , J f,:. ».. 6,f1 / P x / �' .,. ,i i 9..: AN, ,. .. �� ,,:. I �'"� �IAr.... „ 'W !u'. : �P" par; �. pay ': ,. r , '!in a�', ,i�.., , �� f tfmtr stt 2f,1f flr pro 1n , � price , Ire, � f tt Est the nlllf� euw1eBonds wherl duel; mand 4call, #' pity, a tiP r redeemon JPon W2013 f a ,fie� ,, their :, " , ; maturities, t„./2005 - ., "eBondsataprice of' % A fnn'rtrt ofte rIw, ee1 �will .- n #, e ts„n to » a the administrativ d;Isml;.. costsn t1 : ,, I rt� rs,lmt,issuance ofthe Bonds. o; snThe -r m�s deposited Iprsite_sufficient mtitfund., u � .�I,� with t�. v U.S. Bank National dttm ss,Wa t (the r fsI rrs Agent") geto ac m r. s wthe ref t„ nfunds a t ,e Esm,» ientmw„ rirrevocably»r rr/r;trttst 1r t� ext oft e o/, e/, of the Reftinded, Bonds by the Escrow Agent. ,w, I• fInc. wl I � � accountants, �o �; �A h�„ «�, ,,, y the „ �, � E mlfi�r „ ,� �„ �r„� „ I : n W, » n my „fin I � �,� I independent »� »�w�fwl � � public � �� Jr��,� 1 r t�, �m 1 Group, 1 �,� � � r r r �y � �' I �, ., tttM ,w. „mr �w, ma. �.I »w : m . m,,. m ,, » w � , » » n , maturing w n h, � ,» n » n » � � , , �A., , /, � �n , ,r � �r ,, . , ,n „ ,n � Y, » n ,, � ., , � rl,r t I ��,� �� t�tf � � t�r��t ,ttt�� ly, the Ir�,� t ref �» to Ia,61 I ,...:, r' sill : �.. � � ,' „iUN �.�i ,»'� „ I -. I ... „<�. ,�. ,' � , », „' o. ," » . r t��t �r �rt�,�1 �,� �, t, t ' t 1�ill,l�, �linterestt� Irwl 1 s. 'The rfttot so cotitts c,wst lt Counsel t the Bonds,re, t tI � »Is � � w c, of ttie Code. f lie City, advance reflinded the bonds f,r r trftrfrs> � of reducing the, t° � trt� I debtt �wtr� p I '�� rl� next ,� s b r,n at I S638,877 rm,y;,��„�I W� » � ,t present , s� /tvalue ta rrrd t� t' taxesa s ecmsi,yy t, ,,ay- t r l r f t rvinterest Intl t i ef Borids. S,w�a�w A. �,, „ Special rya m:fi,e:s.ttt bonds are %".wtwe , by a: � .thessess;puI,�ai1eItAI, ,�n:s. � , f a r ,. source r . of neIa' e,s,udssesstn,et,.If( levied against /the �vt r:ef/. r »: the t to liable, to »/n, extent, Otet f reta.e, o1 m� ,. V , MI, ill... assessment , authorized P � : i -IIM" law r n�.. i r iw` N''. 0. r �°. �', . �'.. r revolving , i J X „ 0 W. n , J , p?, :... ,; �!'�I�. ""nlll �rwPo vA'MM � I ,r!Wl!'. r/ , ... / establish n'�F ,,. : r.: :r, , .!"� ,� ,' ��'. , , I ,., e� r, weµ, r.: i' r. t1r�� rnt rn:�st�,��H�t�t bonds. 1 City » ,�,, �ar t,tr to �rstb s fits �statls�ll � � t�l� Isf ,� "� 1° ,��; (o ., '�;�" , m debt ;,� , , ?»I�, „., Iw ,,,,,n, ,,,? the bonds - , ,» ,rr � the I � �" w r r,m u�„» H , ,» tf e pay t 1 �et t ,srwr ilc » o t1 t »1s its t event that r srsstpropertyi s e ,ult Origination riter nr st Due P ri nc/i pa, I AnnualBalance fma2.�� Rate 1 w Aawunt f2=22L, r,wwn, 2 . 1 I % . °° 1 w581,1500 varies &W~ 1 , SID344 6115/2006� w years 2 ; ,5 i� , r I ��I ,, 170(X)0, wa,�n� � f ,, . I 1 years 2 ,69 �ri ,s 31 w 2005 , 3. �m�>mll 8 yea, rs 2014 18 50 varies � t 712 20.,7 S&C WW f / �f, I o ors , y varies 1 1 2008 illy 1/3/20,009 3." 8 years µ Orv.w 8t(9,81 ' w , VI!w 5t,3 m 3ra 5 years I ties 51722 f � qY Ana er�� i 1 I Ai are 20 11i 10 w w Total Special is 1 Bonds $60,194,79413 +wPomMtlpPo� u4wVVwrvMnmaMwnwtiu WGw !wuYm Wtioonti V.wW.W�wvWVdn 19wwUWw.4o UVw VVV W&r ,51Ds m3,4 raw . s nnm e nis In the that �' ww, ,, .. and delinquent . assessments d'" 4 w .,. w ,, .,., ,,�. iYA' ivP and are p. ram o. : � 'w .. 9h' �, ». ,,�x � ,. r. a o a ,, ,. �w wA -, � � "�",� � � � � � w I Yn� ;� I� I �a ;,fir , .. t,h� ��'` t �, ft,t�n ;t. »�sss� tna� tl �r ��,� r �„"� w �ntstt�t� �Ss�.�sw!t� t, � �»,, Ira K i � � m� i s principal rss s t.s t 3 of 1, �� s v there t � ntrf �� t�� I � � r ��, �», ��` w, 1z Clity of . Kalispell ,s11 entered into r„, ttwi tg Disclosure: wscrstrm, Undertaking d r rt g, tnr ,s m wf. 2006 with epemt to the N1 4 Bonds. ds. As part. rt of t_rMena �i rr�tf�� t» covenanted and to r t�, tdisclosure � �Is r e a „ cerm 1, ta,caiwu ,qW ,, I.,. Opel, rating r, ,..., data, arid i. qµ,.. w , the 4 "4iy, :, .; '; kr.. n � o � o i. Holders :. I � „om.. w, t rt r r t at , d t rA notices e of t o vcurr m c rta events t o ter r fit the s he Bonds 1 � n Participating ,w nn � ,p � nn r � � Exchange Comm� ��g,� , �; ,„ Ira � � � (5), � n ,,, w ww wr.. w� �* .. � i «�, � rn ,r i � r : I�, �� , An�m, m. , I - ��,. , �. wqh :., ,�:. �'..'. „ wrv» npy 'a.., '.. I Inx° fin, order, t: as�, tst the rtt�rtt Iw, dr rtt s w" t �,� tartms Y �� s � » 1 �1» v . Securities mx• , ,r,onr, c;v„� nr a ,. Securities n!M ur � Exchange "AV :. ran � A ::. "Rule""), , »� � . , w � , . ,fir , re n � �'�,. ^� � N wm � , � Act � w�� m, I promulgated t n t�ww�� r Illn�� , � under Fr t r rwl t,w: � r, I� �» ss r �° ��, �r s � � �� rat r, � � I t � . w.., ,w, u,. ; „ ,,,w o, , nw a^ .,, nr o �„ � : „ ar m,m, w, w �,n ,nx,� a, Ir, f� Bonds e e ssue n t rst/ t t i s A� tl W ,�� adopted t1i City ,, c of the w..' t r e'1� 20 64 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf Cf,1,a OF K,A1,,.1SPEL.L NOTES "1"0 FfNANCIAI,,,�'rATEM,/,E'N*,rs Purstuant to Rei.",�,(:,Atttion No. 512,113, principal of ittrid interest on the Bonds, are sectired by: (1) special assesst"nents payable by i Am- Gm taxp,,tayrers-, In SM 3441- (11) certalin vilx incretrient revenues pledged to the Bonds,; (1*11) a bond reserve account ($226, established in the SID 344 tbnd; (tv) the debt revolving fund ($226,000). On the July 1, 201'.7. payn"ient date t'or the Bonds, the Cj,�y' used $116,783 of the $452,000 in the SID 344 bond reserve account tofiffly !iiatisf,'] I I t1te regularly schexjjule�d dfebt service payinent of"$305,329. The usse ol'the bond reserve morlies wasi nee, Ixe use the lar est pr(:,)perty ovvner in S11.), 344 (currently the owner of I I of the 17 toud parcels in SID 344) had not palid 27008/2.00, 01012011 Special Assessments when due, and the available Speatial Assessments �,,tnd Increments were insufficierit to f1ill ist"Y the regularly, heduled payment. City has/ determined titat ,y san I the tjsstt of bond resserve monies constitutes a material event, (as defined by the Rule and the (,J ndertak 'Ing) bxcause' it isat'i ti, i.w,,xhedu1ed draw on 1"11"te reserves refle, ting tinancial difficulties GN fortlie B�onds. At June 30, 2012, $109,2117 Is in the SID 344 bond reserve rayt:tt, arid Is In the debt servil; r'evo1v1'ngt`Un,(,/1 avi,,,ill I able to pay, fibture debt ervice on the borids. Revenue Bonds — Revenue bonds are directly reLated to expe ted to be pald kom the proprietary ffind. flfw22,005 Airport 'Tax Increment bonds and the 201 ".)w West Side "I"tax Increment t),onds are acc(,,,,,,)unte,d t'i')r, 'in the G`overnment-w(e financial state'rnents- and titre paid directly fi-om tax incrementits the district. I ssue, Interest, Hinal Bonds Balance, P U 1"f Ose, Date Rte a Tenfn M at2!:!!X. I sstied 30,Jun,,,, 12 Govemmental Acti'vifies,'f, 2005A - AirpT11F Sep-05 3.8%4,40% 10 year's ,)O"�o 4 41' 1,445tOOO 1,200,000 2012 - West Side TIF Mar-12 vaill"abit, 1 25 years 2037 5,00,000 .15000000 Governmental Activities Sub Total 40M 1,945,000 1,700,000 Busines/styIII e Activities., 2001 Water Jun-01 M% 20 years 2021 $ 761,000 $ 40400,0 2004 Water �Refunding May-04 2.5%-14.85% 20 years 2024 1 1840, 000 8 5 0, (X)O,. Business --type Activities Sub Total Nro $ 2�601,000 $ 1,254,000 (,,�,?f Me, S4,!r1'es 2t)05,4 irin,,"Pt-t Llrb(in Renelwtil ',hzr Incrt.,#ment Bond Reserve Account — The City shall rywintain a debt service reserve account witti a balance equal to the lesser of (1) ten percentof the sum of the, orilginal 1,)rincipal aniounts of each serlies of Bomis of,which any Bond 'I's Outstanding or 010 the n�)axinium atnount of principal and interest due on the Otitstanding Bonds (giving effiect to any mandatory sinking fiind redernption) inthe ther) curre.,nt or, any fiittire ctadcndar year. Ma 0 rn iamount of principal and interest due in n ay fithox;* f"1sc,,;,t1 yew�ar 18 S 2,7 ximu0 City's Reserve $ 184,875 Sign�lk,wnl Prtl)vis4ons, lheSt?i-hl 201'2 Ki/ 1,,,415an Renc� wl Tezy, frici,%,,unent JV(�,)tt� 1"he Note niatures on January 1. 2037. and is subject to redemption, at the option of the City, In Whole or in part, on July 1, 2014. Interest on the note is varlable and, a(tiusts at a rate equal to the Prime Rateas published lin the Wall Strefe"AUoumal plus on etach intereso pIII yrinent datetZ)r, the Note. Reszerve Accotmt 'T1,ie City iis! not requiIm red to maintzrin a debt, service resserve account related tothe Series 2012 West Side Urban Renewral Tax ltwrem etrt Note. M 65 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf 0"FY OF KAL.ISPEL1,11. NOTES "170 FINANUAL S`FA'ICI 'EMEN"'rS "the I JAIRevenue B(1,W1d,s I Debt Service Account - Monthly an amount exju, I to not less d",t,,am 1/6 oftlie intere,,,,sa due withIn t1w next six mondis and 1/12m. of the principal to becotne due within t,],,,ie next twelve nionths shall be credited to the debt st"%,,rvice account. 71"ie debt service account le t'c, , ,NI I W as, al I debt service payn, z:w wz,,ts ;mmo as, of June 301, 11 Nvere tniide as ofthe end of dit fise I y,ar,, leaving no accrited interest oir, principal balance. Reserve Account - "I"he City stiall keep Iin the resserve account, an an"iomrit equal tothe lesser of 10% oftht original prinei"pal or the maxitnum amourit, of principti'd and it"iterest required in the curtMvnt or any subs, quent t"iscal year". Foi", the Water 111ind the Cityt corripfies with tbe arium amount of princlipi;,tizand Interest eqtdreJ in the CUITent or any subsequent "I"iscal yeizir. ,Maxirnum P; incipal and Interest 4,6L T(,",nal Reserve Requirenierit 4 6" 19 Reserve balance 6/30/121, S A, N Property Insunvince - 1"1e City will cause all btjildings, propertless, fixtures, and equipmetit to be kept itisured in t"unount.s, that zire ordinarily carried". ;a'� ry' ,'� '"' Liabillit y, Insurance, -'Tlie City will carry insurancv a-galinstul 11abillity of tht: Cit,y ai"ifd lits, Rates, and Charges ---, Rates and charges will be rnadt,/I, kept sul"ficlient to provide gr(,,:��ss income and r,evenues �',,;j,dequate to pay proi.mptly the re,-,,,tsonable arid current expen es of opto,,,r ting and malint/aining the; system and to proctuce in etaclii tiscal year net i revemues, in excess of stich curren/t expenses, Ll+ial to 125% of the rn/:�"'txmmum arnotint of principal and interest payable the Revenue on A(.:,/cout'it in any subsequent fiscal year,. Gash Flow Coveranp *W ater Seivice. Charges $2,328,331 Misr., Revenue $ 147102 Total Operating Revenue $2,475,433 Letsis: Operating Expense (excludes depredation) $ 1,609 305 W 411.1,8 111. Available for Debt Seivice $ 8,66,395 "Maximurn Debt Servic�e =011W, $ 4601,119 overage FY12 188% *incJudes Interest, revenUe, "includes, all debt service needs of the water fund I State Revolving Fund -- the (1 91 ft/y live (5) loan agrem',:rnentst with the State Revolving Fund (SRF). 7'"hes,'ie oblipt" I I g 'tons are to be repaid froni tlie optsrating incorne of the ftirid. Interest Rate FY 9 2 4. 00 9146 FY04 37s15"0),6 FY07 315%, FY08 3.75% FY08 3.75% Total SRF Loans m Amount, Otitstanding Te rm B o r, rowe, d 30-Jun- 12 20 years $ 3,913,425 $ 140,0,00 20 years 1,475,1860 100. 8 yearss 1,28 3,15,9 5. 2 6, 0 0, 20 years 1"!50JOW000 1,378100,10 20 years 14,470,000 13,026000 $ 2220C*42,444 $16,079,000 66 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf w .� � � � � m °''1 AL1SPIwmeL1 O ,r The � �m m6 � na �. W �.. ,. Reserve , :, � , mf „�^... �w'Q. '� ww. ilk.. � m". : , , „, Am. J p0. yi ww i4 ,. ,rW �t��t 1 � city �� t Ottreserve� ;tat equal � t ° �l�t.�m 0 2012,he op/eratting reserve acc(::,)utc ntath'I's $190,,0010. Debt ;;,,�: � less pry' xl,, r lw tx �1��w cot ,� th„ t el t �ss t11�, ttna tit due t�h t,h a,,t t,�l /,1 t,r�w c.�to bec«,e dtewithin I,the next t , „ �vrmonths -rt s shall qbe 1iie, f «,e debt se.Ice acccmnt. debt s ntw .• rvi c,e .. t t�,a . I June 311, „dw all htservice p-ayrtnents were e made as ,teend of .efiscal :fi, year, m " no ac,..i4ewwss, principal a c . Reserve nerve Accoint x J , keep the reserve cc, u� a , e,tA �,�e r oi oftr eoriginal g�al pri'tm , p a e l , w u, r tttt mW trequired, current tw ,h t u t y dyear, eN+ ., ,euv,Sa wit mm r. - m�: uw I. � �... ,mr ,.. �. �, - �w, n'b nPo:. -;m�,. m- �i�: - . ,m , :.. „r ,;rr ,, ,r,,. ,.. �� ..,� „. - ..:.,. ..,,„ „ n. ,,,, r� ,, ,, ;..„ -.,,,z „. w „,, a,. ,.., ,,:. r, .... � m ,,.. ,..-: ,h ,. r... ,„, N, i and ,,.., ru r,H„,.:, ,F r,,,.. .r,... ,�.. ,,. .,a se 'w "+�.. „' � „ � y y d'�m aX. ,,��, . , °� � :. , '"'� f„ �` ..... :., r r I mi..... .. m•'., ww' i „., „� � 'm .'�„ .. „:. ,,.. ,.; ; ��I,�, r � � �� ,� �° x�t� �wt �,, � nth the ° ttt 1� a t��mwt twtr thn current u rent or any t� � bse „ e t, m„ u As it e , 2 2,thedebt e iIu ce reserve esNwe c grit contains $3 0,s4 A , ., Rates and Charges — Rates and clu/trges,- be made andkept, s ciie 'to ,, , ve `os jincorneand revenues, adequateto pay I vtltr tereasonable sdta,„ :andcurrent w; tt expenses xtemserl oienatg m to tro °ta itthe , � xyat ° n, „nI ,to pr ue each �fiscal sa, r e,, net m revenues xexcess of such current expenses, °tat to �� maximtnn trtn_,t x r wnt � �,w ,tow nt � �o„6 the Revenue Bond Account subsequerit fisc, aI year. twitµI� Flow a l I I wn V L! *Operaw, fing Revenue, 3 , 9 Impact Fees Pledgedfor Deabt 250,000 Total ,, 791 LessOperatinq Expense V ns:. v'a x C-I' Ld,e° sdepreciation) Available t , t Service wwwww,wrwrwiiwi::, r um wl t S 1.' i Y, wi' "Maximum Debt WW,W,NJOwN�fN J�M➢Iw°Iw°IfVV�6wwlJlm MM°WvNNv ,3 9 Coverage FY12 6% *includes interest, 1r "includes all t wof the ,11. wer t und Loans,/Contracted Delat Gove,ni,imenW, Funds Origination, t. t, Due Principal Balanoe Date ' t/e'*,/* Term Date Amount -Aj n-1 SO[Cfty Half W 3; years'1° 151,836 41,459 5 1:lF it : T'ru 4/22120,05 vent, "t 0 Years f1 1.15. 279.900, ° Bov ° c* t 'rruck 1,21,30/21010varies yeas 2/' 512, ft' � ', r., 2115t,2016 57,457 M: Dump Truck 61155/2012 varies 5 y ea r, 211151'2017 2 w J5 124,865 SO acomIact `' /300/ 0 , n 5 w si 2/1 miP20 17 5,928 ' rv�w,.I i 4 ,,, a nd" I "w` F i re a °L ,�, ti 120, ' ,. ' ,.. � , ' n�'�I�m^ 10 y amr/s �!Y le " I., 575,0010 uurY2 mv""37 �111 p� 7 20"1 'IsM, E -C-1al' 17 4,+ % 12 years 2 m°°°°wwwww w° w ° wwu�a- 7 wwu��wuu�, °wawxn.Nuaou�xw°w°,- Sub total B01 loanslcontracftekd mrrr +r rrr � U m �xrLIMrr r�rarr�rrlry Relcon,dirvq Program 0%JV t , VNIj i . a: % 30 ;jars 1 34 520,000 451,479 t o g Program t /27/200 ,0 years 2 0 ", 257,2205,06 � m �'a ,�ry��'�'�ryI total Intermediary �' 6mvll��i �>U!°v�u SDA �°iw.wawuaw.ww°wa°wmmowm�%a✓uw�w�.uwrvmuw,nrvw:�w°uwmx�rvwlmm!mn�a. ,a .,,u*rv,w,www�wwxuarorwKxwwarvm�fx�wla°°r�rµrrv. ,.�,wwww°wawwwu.... °uw�rnv�w 671986 �� Total rts/contfj ted debtVY rv'1rv(✓Vii",�Ir"dren°mwwrv°�rv�Mrn�i°�""��"�i�PG:. 1, B(xard of Inv erstirvwrits Intercap Loan Program 67 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf 1AS N - � FINANCIAL. " w " ES ., ie V , I , %Po � 1 HIV qVh ayv, 4� �Ow ,... 'iW HIV �fil. I M ( il . r , , r l , ✓ ,:' i� ✓ irx :. )s compensated I , f "n'W, 9 ii Iry absences 9µ. , annual l �. V, outstanding. 1 " � , t1r�1,+ �� t wt��w It 1 ter , wtlstt � a,�� ,, �t� hrc�� payable, ' „ 2012, , wereas follows.,, SP ,:f" IAL „o.: , �I� -AAA: I ,. IO 'RACTE : 11 � RMEDIARY REVENUE/ , IN" O FISCAL, FOR BONDS 'S NNNNvIVJIn� wMN�ww axuom000m®aowvo�wwww wwuu.�.w0000J� BONDS IS �ow>anwN• �mrto,Mw,wnwwuuuuuuww Jwwl�ow Jort000amaJNw oouououJw" w"oouuouwoww�w�ww NCVU " DE/8" �a¢mo ww JNNJ�owww 0000000�w LOAN PROD 14r- , . ,wlv.�vnJww�mvwuo�olwrvawmwmxewulwrvxewul�wwwrw.wo � BONDS �uw wNwuwmwrlNNNwrwaw wwNwuoluoluoluoluwNwuwo , w".w „., ENDED „� �` Ij�@ IfI � lxhuxmllMi;�u„u �I PRINCIPAL ,,,n u�, ,e�,v,: ,,.:, Fv„..: , y� „�' ,N,�J� i� ra�w'��»,r, INTEREST ' IVJ. :. ,mm 1 �+ I� �"M,�II; �� ;,w yam, w �"" ,: �=, ��N,w� � h�i ", '�,uJrU��dJr N, PRIr ,� INTEREST �^ �w,�N°m ", rtNJ� � +, mm Ul' � PRINCIPAL N ,rt �� H ��n rt 1„ �,ru�;,��1 x „„ TOTAL, , n'1w 4, 0Wrt 61( 4 .l,�W 5Nx. CO�y 87 . w,, (554,4444 /YS 6, 2rc(q E, ,C 7 0,t! , ry p64Aq. T!5 ,20 4 44 I N, 1, 0 56,913 31 ,; qX1 1,, ,/ 3 78, 3 �'i, .M,, 25MP2 6.4657 14681) x 7/ ry217N ° 5 /5, 0, W, 0 52,463,N�0 9, 84, 11 611,113, 25 11,8 , 1w,,.3 47,00 N8 '' 6,210 53"r,f000 1,50 ,6c, rc 6 2 5,#� , ,C)f9,�� , � 7,3 �r0 6, rt�^� 52,563 ,5A , 5 7 2`I w i,!i,W0 rt r. rm 34Y7,91 4Y,9w' 5, 2, w wiw 2 7„w,SM 2 27,230 7,20 5,7714 � „ , 45,913 1 , 51451, 1 , w1 t^., n ,-,'. re':: "' I�w, NJ �",w,�w. AHA1w. I �w .v;;�.,w.�. �j, 4p1 r. f�1rw+M>�',,;'MN r��,'VIJ" xw,r ^y.,�.,: ;:;'? ,m, pan., �vh""'II: i. a '�'IIvI y.. ' +W,� ,q ��,},y�� ,',flry .2' r� ,rr'mi�VM�,. 1� +ihx� '�5 ��,�', 1ri M1Mw�'J" '""',N' ti , "�ibpp,s�ea, ^"' '.y. '�rvIWI, 'V 11 �',�"��"�� '' VJ st .�IJ. "Ht'� ,:.1I., lw�. ; 'w2!191. U�1�, ��;��,pmy,Ir 1�x1,..gVP x �*My�"',+ymiN �w1 ��,v , rv�wry.I.'� iJ�' j d � ',NIU',..�. lye' II'. 140,287 xWn ;n&+. �*' "" 'd6,��IyW.. �'1'� 24,732 p, 'Nm9"�n�id"a�'a�: �17,576 ,wrv+ yw�. �r�V�,,;r�Mig � +%m'Y' H M1;R✓ 2 �bw ��,� ,wva�„ rN"' �,o nnw'"ww„wl�p�rcr.'';ny'NMIWv m"rc I m'+'px 5+�. � �,�� ! 'M.nr i v, � ""I'°R NMHU�N,iia Wq.,� �v,J�� w4�",, +gyp' r y'rVY;�'.YIF'xn S I� '(,,3 w 9 1x C.f 11 I^ Ji' a I �" Utt 1� 'bwi # ".w' �0„pµw;'�' , M% k Po' IP h 'Vrrf N w ) ry � �� 1RN v�', M1cti 1 �'A 1 si. �w �i '"fin 5�r y ,�wy� I 1 �I '0''2 -2' ' 154, 0,(A6 119,5 Mw 72,1 1 3!X6, 7 14 M�MUWINNwVJNJ�10 iwIW!WMMdnNrc oNJMWUNNUNon�w.o.W.rN WWTomaw Vo wwwww!rvuuuwo wrmu NONVM9MN wM01NWNVWmm,WWwINM awawVNamo Vlm e nNloA'A'ANUIU.oI aD NNNwNwNWw.N NwwMJwNPu MIWMUNaW.N Mf,ti rc VM omm PUiu NNNAa oWWaNVw.. 'on awooNl oMnNd VVVUNVOVMMr'wxNW a ioioiWW�WnnnnwmanllpllWWVNJMVfa,Wmrra,MvvvmmnNNutiVNMONVVawwwwNWWVVWVVVVVVV VNJ.... UTAVVMWUVN oIUNU n , iow IU J000mmwo,u�xmoamm oom�,uoromm- AL. rcww�m,owwwMNwMm»w1»wwJmmwwro 4,11450)0 wnnnnwJwJww.rJwMmwww� wn u„ "K`1, 3,845, ,w, 3,21) „3,, „ wM�Jaw�. ana n'wx oMwMwoo�wuxmuo MtixawrewmrxMwrw� �wwa�mwwvrolMrewrewrwwrvw�oi�Mrnww�N,ww,maw-, 1' rc, 7501 ,( ��wwwm�mwwwwa�mrmwM�wwmnMnm»�wmwmawrvti�a w'1 nwmw�J�umrm�.•mrmnwu,wrwmwm,mawwrv�ua- 671,W5 �rwnr�nn wunm�mwomweMwlMMwwwu��wrmywwwrw " �r 85,113 wnriwmwmwarww� , N, CX[) tiw.wlmnw,rwnmHua�w��m�vawwwrwwwwumra�r�ww awJww000moNr�urvw,wwa�wrcurwmwre,�ra,¢nrcu, 65,2 q ,a�rwl�aawa�mmw,mr'wn�= x8> 789 M i., Pe,, SRF REVENUE FOR FISCAL A I BONDS -O Eo n w 111 Ju�" `, INTEREST PRINCIPAL I ERE, , ,,, TOTAL 2013 3 91 , s 593,782, ( 1 �1l00 1 y '' , 6 N ,V5ww37 0 1,037,000 ' v 1, Ill 11 w " rD 02,,y "��Vu��I'' 11 , 1,749,081 1, 20,15 1,122,000 �q`�N�bwvg yryy0 519,507 9, 10 'pli;'�4.), ��U6of '' " 1,'^'ktiN 1,792,182 2017 99 It, 001 44 2,y'4, ' 113, 0�, �'�' I ..T,, 59 1,584,058 TOTAL w 0 7 9, 000 4,811,001, 2 , 0 3/56,698 141,12,500,6 991 F. State -Wide Substantially , n<v all fbil-time City m t. iI e- aree„n aa.. wone f t r retirement plans: 0 - :,1 PlwE + ..es�Retirement ,� System n ;; Municipal nic R Police, , m Officer's w, � �t m. „ ,t System rO w^ .+- and I; the ,e,i,.,sNJUt1. e-t S�te rc (FURS). i m .w, ,� 1 ,,� ,, � ; ' �,, � „rl� I"Ul 1,y - J _ cost -sharing o ,arc �, ��, , , ,,,, l �Jn» � plans � > �t�b �,,, t � J , t t t� „ 1 t1� h � � �t s > ut J , , M , r� J �„ � w y „ , .,1 and r I , I „ + c, �, �J defined, benefit defined t b t � �w 1„� � t t� N t J �, e�t„ J s a e,v N�„, >� na The IrW' . � IJ .Io R�xri � "� .. � � irc rw ,N aw rc „� �� , and � "� �' " � w JAI' � � � �^, , " �tiN Ja � I, wM,� . , � „, � � ; I MJ r v f t�lrc � � �,, t ,x Y„ t�N , � 1 �y N I � �, , � �� r, ,�Ir � � Iw, r»� I�,,, �, �,µrx ` �,�, FURS. (" 1 'Uy t payroll c „ e, E 1 1 � N ,1 r t�. t 1 wrN " ° . Y J , n � , � plans - L rcn and �, N N , , .,, ,. J w� J rt„ w� I � ,, �, � �' N�„ ; : ,�' 11m are ,a , � a " '�. 7� , „, : ,; „ I° : nd ,;'� law. :. ;" rww, expressed ;"�, ,"�,", it , . � ,,,.I. � w� x,.w' I I� , r 1 ; , w, r t ate � t� � � required ,I t� rc� State � The �,;� r , t gat � �1�r + � �1�1 ��1 covered oft for thefiscal year ended Jue 0, 2012,w: w +N.wnwN,�w rwrawwm w f� ��,�i5 l- , . - Employee N0 . % .7 %: , E r9w', r . , �IN� I'm1;� 14.4 ?v'^u 14.36146 Stale 0. 10076 29N, x.N % 3 2 . �% 68 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf 0"ura OF KALISPE1 .1,,, NO"I"ES TO FINANCIAl.. STA"I"EMEN] �S JUNE 30,�1, 2012 The Sti�,uv,, cor,arj' but liort to 'fire-, fighter and police m,,mirement quall''fies as an on In tscal ye,ar 2012, the Su,,it(/:()f Montana contributed $563,170 to firefighter retiremen't and $598,901 to pollice retirement. These amounts, have bet*'n recorded in ttie Clity's financial st telMents. The Retvro trernent, Slystetti 1'SSL1c%,.s a publia. cly available financlat reportthat InNJ cludes- financiN. al staternents and rtxjulred supplernenU"Jry inf rm;atlion f0'r all three 1flans. 11tat report may tie obtaiIN ned by,,, writing to Public Employ,, Retirement Diviuur sion, P. 0. Box 20013 1, t4elena., M"T" 58620-0131 or by calling 1-406-444-3154,, 11 City's f r tlle yc/"� rs ending June 30, 2010. 2011 atut 22,0 12, assi 111sted bekw, were equal to flw re(Itit I red contri but "tons ft"/)r each r. PERS MPORS FURS PARKING MM 1) 0 1 402�258 $ 2631/223 $`254,540 3,729 2011 S 3 KOZO 5 9 5 286.797 2*369 $ 3,633 2012 363,551 $ 291843 $ 247,995 4t 103 ( "It "S. Post Ernpk,,�ytnent Health Insur-ance Denerits "Femunatexi etnployees,, rTttay remain on ttie Cit"y's he4tdth iri's Linance plan ft:)rupto 18 months lftlwypay�� (11,einontblypremitims. "Do's benel"it 'iIN s JNI. (,, deral ("I"..O.B.R.A. law. In accordance With Montatia, S"tate law (see below),, rtliirees rnay, remain on the Cl*ty*s he-cflth plan as long asi they wish, atoa, ratet'hat does rI. x,.)t cover all of the rtW,,k,ted c(:)sts. This result,. Iin the reporting ol'" an iniplied, i-ate subsidy in the 't,inaricial statements, and f,,x,::,).tnotesi. The Clity"s contract with Allegian, e Benefitsdetatills theplan MMIA is dw,,�, adn"unistrator, of the benet"'it plan which covers boIN th activc and retired mern'bers. 71ieCity's rewl fireei,�,; nuay continue coverage ft,�,)r themselves and tt*.ir covercd eligible dependents if they art: ellgible fi,,)r ptiblic c,,1,n'ip1o,yLjt,*,s1' renrernent bNv y virtue of their ernp4)yinerit Wild'] fl"Ie clit"y of Kallspi,�*11. "T"he City's currerit labor contracts donot include anyobligattions fiv, paymerits; /to retiu1'ecx/s,,,. klontaria C//,(,,,,)des Annoti�,,ded (MI CA) St'*,ction 2-18-704 suttes (I) an insttrance contr ct or plan 11,s.-sued under this part must c(,,wntaill provisions that perrrift: (a) "rhe rnernber of a group who retflrc,,stiotyi,�ti/c,,tive,., ervice under the, appropriate rettren ient provisions of a det"inexi bene,/t plan provided by law or, in (Iie case of the defined, contribution plan provided 'in 'rifle 19, chapter 3, part 2 1, a rnember w 'tli at, legtsa,5,years of service and �*irho i's a least, age 50 while in covered empk)yrm(,:,nt to rernam a member ofthe group until the metriber, becomes e11gjb1efi,,)r medic, re under, the "federal flealth Insurance fc,,)r ttie Aged Act,/, 42 U.S. C. 1395t, I i iprarit n atiod"ter gro, tjp plan with stibstantially ffie s �ie or gre ter beneritsi at as.- ;";,uziended, 'unless tht,%,, niemb./e, r .s a partici I an equivalent cost or,�'; I I group plati with substantlall,3,r the same orgre%,,tter benefits at an equivalent cosc (b) e surviving spouse of a rnernber to rcmain a menitit,*,r, of the girrotip as long as the spouse 'is eligible f(,,)r rettremet"It benefits- accrued by tlie de�ceased rnember, a,s pt-ovided by law tmlesss, tlie spouse 'is eligible tior niedicare tinder t1w 1, deral Insurance 'for the Aged Act or u-niess the spoluse hitts; orls efigiblefor equivalent insurance coverage provlided in stibsextion (I )(a),, (c) Tbe surviving children of a rneniber to remain members of the jzroup �,xs long as they are eligible for retirement benefivs accrued by the deceased member as provide by law unless they have equivalent coveraqge, in subsf:%,ction (1)(a) or arc efigible't"bir irlist,trance covena,,g, by virttie of the employnieril a surviliving paren't or legal guardian. For FY2012, the City of'K, 11sell has recorded other post empk,.�ynient benefits lin the govemmental ftinds. This recording resulted in an expense (,,).f $135,207 on the stgatenu,,,�:nt ofactlivities. OPEB 'I's recorded on �ctn'accrual N,,,,,ts,,,js f(,,)r the govemmentzl flinds. "Fliv City, of K Ii.spell &'.)fes'not, consider lits, 11'abillity, 11,,),r other post emplqyrrnent benefits- iti the Wateror, Sewer 'flinds to be material and hafs elected not to report OPEB in dwse fif,inds. 59 69 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf ,L 17"Y 1"N KA1„.l ';EL. ,, NOTES E TO FINANCIAL STv,ln, °rE ,f TS F*untiingy Policy,, ,X The 'i Ilrc »ftia t f t earbls e*cebenefits, cM, , e 100 toftheir � c(,"',mofthe bvnefits n w pay-as-you-go mNwre basis. M 1„1e � t p.' s administratively h� : , » ti e1I w.: std1i sJ� r :medical, � I c4dental arid vnKK " rir., M J I�+ I between and , - r ^ +� � 'M : » N, ' ," � � <w , , „� I ul, : I � / mm : i � r », tr ee ' 15 $ 1 1 n per t � J t medical �wl 1ecte l 11 Ilnr �rt� � � � eligibility.1 11 1 rr w rent a , iw' ,_�wiM�» �yeer I � n Nne� � , �e eMt,M�,�.tw1s. For r fi,scalye,arended n 30, 0 12 the Clityr has 17 retired ears r ee1 1 ff e, tsi/. A a v ,. i»,w ^w r ; ;�v.mp (,r„ „ , �� a' ,1e �:t y". s M � other, t1;e1 t-employnient ..benefit ( Me1 . 1 cost x1ydeNlw I calculated mo a q» �', �,'0.�.., a; ^µ e,IIWr , ,�q v c. , 1 : � ro i, .. ww. I . v w rc ,.. luw , : r* r r ,»M ow � I. „ nry +r nl., , .. , I . a ,I , n :I ,1at� s N the , n, nn � � � I � � 1 », �M~,�t� 11dwl�� that, paid M< +r r M✓ ,. Mn mw � »I,. ,w. a . n» mtl. JJWy ... �, ,�^. .,. I I.. 'f. ,�" , w I » .., { �.�� ,. ! f"Mn ,A „Wr ,I. » � ilk I .,.W ury and nB 0 r ,. any I. N" ""a ur �,. �y �^. ro� J. e+.. `i= ,; I, : <h, ,: fib, y... �r:r. '� »�; - ,� N �, 1w ��s » ,, M�Jt�Y1 t,r wn� w �'w�t �I , �� t t�, 1�,1,: �tJ �1 1�N tl� 1y excess) over a periodperliod not t, to e, ce ' ,,1 thirty yers ,,a r � ,, nJ » I II f rug I � � a , J ,I 11e 11n,1 „�11rc s1ll, t1IIJ �J, M�» n.,t� f the ,t � rc,1 1w„1 w�1Kf f,r t1WM Ib,�, tflln �w,nt rt1 �nt1 tr t�l tothe I � 1 1 1 , � e1 te�f s i the t �� , t ,w, 1 1 �rcf obligation l l t the rltlre� Health, 1' 1a , Govemmental nl, »',I ,wn Totaltt i t I r�tti iti Annual ,tu con uti w ' � wtuOPEB Crest pen 11 I $, N' �t � � , IW �ryj r fry W ;... , on beginning n I of : net . , �w .... tion I : , ., , , I ... �AAwr .� " ,. MII; '�W � , , In t e t t th n Required Co,t I t, - 7I I 9�4_ � AnnualP�I Cost ' `2 », 1 m' �� 3 Contributions (implicit)- lU I wW� �M� 465 741 '! 465 »mwWxwwwwwwwWwwe�rw ��I�Wwrv»nWw�,J Net I I IJ obligation -beginning,t year 2, I 1,t 234 r„ t it ° et ,�. Il 16w.WIWIWwYMV,mvrr�Vniwwitl Ilw ,WW.WW.wunY»YtiO*oVUWUwMrtwuMMN VXWW'Aw MMHWbWPNWIwI � 3, I' W�wnwn� m �ro , �� M•' i lur w, � � u. I ie City, „I ; „� I ;� »'�» '� �, :�' ' ; . ," .n. ;iw' , : w... Nrv�;l'� r d` : �I a V;� :m .. �,,. ,." : other "; l w, a �4w� �` i � i tl., I ,. r I��", �m � 'Jnri � , ,, e.. ",�±- , J, .; - I fib... ; , »Water :.'.. :. I : vm� ," ,��II,. s, "'�` �" 'I ;r I, r : , j�.. ,,. fir„ � 'I �M�- v, `" »r� �I "�. Idf Sewer '�&I »�, IH�. P�J '�w �1'>r. m wM r=�n t r e, �" � I w funds and and 1 s, 1 t ,1 ��t t ,�� r pot 1 E t1 ss Iw;". ,»w, nl. n ,� J,w � n yw. , , � : nµ w» un � "".",,� are ,. !�. ,wPo Iwm , '� ��! �«,u : " � y�N, ,: J„ ,, .. �n"� , �rq�.. I m, ,.�� N, ' ., , r, „ ml, ', i r "."'b� -..,, ,� ,,u'r» d' ,,,n» IW, °w ',,. m of .. r,'wur. uM 1 June: � 0 2 ; 1year-end �,,1 E ,,,1 1 t , � 1, ,,, ell the tn��, t ;, � t, 1 „ f1�� N 1,11, s �Mr u� t nwmroro"OP wowwww.wowwoluwwl.w...... wywyJy JM wmmmmmoy Jwiww 11 ��, ,xw w" �^w, aw I olo�orwawwM'.wuwww'ruwwlywwnww. Primary Government: Governmental ttiti s' Gene.ral goverr"tment $755,229 Water" 74,804 �ewer*,I Tots -t ,ct tt Iu� s 143.853 Total ,,t t primary, government $8,99,I0 �WidYN�6A MJwWN+A,+J4Ww�H,M�nWWr the , ow rye. �iw � , M� � � W � ,mm. IV M W, I+iM rrylXli R funds M Wb ,,. �. I MNw. i.. "MY I I M'b. , consider '� a MV rt, ,,. I i n X o» vp, M 1 lob ",... nV ! .PI ,J m : F ,,,, ryl , ' e ,. i� ",.... I,. fit r ,1111 MJ1;� »t �,, � � ,� 1d 1t t, M t � M�1 � o t t,� t.1 �r Sewer 1, two �IJ atv1 and has elected I; t t, r 1 y rt OPEB in th, IM.If1inds F Status ,w,» � "I"he I� I�y �, rt , �M nM� JM�d.� I� n,� � rc�.�� vy,n JI,.� involves I� �� I_w � t t 4/^ t t VtM l t, , t t ^M Iy, ,W 11 e, r ect� o f f J, t r�M 1� eft payments f r n plan � 1� ^ Ib �tl� � 1 I t t � the aM ereported v., o .. n ed ga 1.r ts� and assumptions ss, tos �1t t .1r�, M 11t of oc„ rre ..ee f events ,Its "L r Into t1 tyt r,�. 1'a' 1 1N.� m1_ . n assumptions tJo° m about N ut tre e` wy, r afl , the healthcare I strend. . tw, atw" I�d regarding the ftesttaaus of t ,1a and ,I the annual w„1 rgy. r contributions wtributrs ntemployer ,Mrw y, , are subject 1ect to continual n n et � results m ca, e rt wl' ML... � , Mk8 _. ,. �Y �n�,�6� and new I ,.�. ! ilU" W, a I. about '':. he , ,.. ,... r,» ," , ror i v ✓I I ,. o.., !w. r+ :, rery .�.. ; N,x, : I ,.. �. :: t �t no � �I�,� 'd ��,J�tt� Ilw� are IMI 'WM �aa I, t t 1� � re ;al aw�J o � J u yyav o� w 5114 II��nM�� r I �"� �'ltw � iJM� r ,rn'� M N M t r, ruatr f I ,w flowing ; the tw: to t statements, � ew t trn tm �I tn ' I1tu a r trend .r•• t I about I lt r te1 pr „ wct r v� of plandsts » ^ °,a�. „de./creasing� fi, time r atMY to the actuarial accrued 11"JM1Mtwe,»�r .tsiMTile 1f s elected not to ftind this flab 1t ME 70 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf CITY OF KALISPELL NOTES TO HNANCIAL. STAT'04ENTS RJN E 3 0 1 012 CHEDULE OF FUNDING PROGRESS Actuarial Actuarial U AAL as a Actuarial Valuei of A, ocrued Unfunde d Percentage of Va, luation Assets Liability (AAW AAL (UAAL,,) Covered Covered Payroll efireea, Medical Plan Date Lt. a a - b F unded Ratio( a I b c Pa, roll c a- b C, 024 0.0% ONNOWAMMMUM" I ,, 1 ifbrrnation), ttw Citys actuarially accrtm 'I, I 'I ty ,(1,1c1,uarh:,z1 Al lha(], i-, and As.,vuinI.,ition.,15 As of'June 30, 2011 (rnost current it I I xf fiabil" (AAL) for benefits) wasi S2.145,5"'b"!"N"20. "T"'I'te,AAL by suittjs brkdown 'is shown below-, Active partficipards: Refirees, Depervderit,,s, and Stirvivitig Spouse,,,&: Total AAL Normal Cost Impa ct on Statement of Activities Annual OPEB Cost 14'ripact on Statement of Net Assets A, ssumed Contributions 14et OPEB Obligation at June 30 Fiscal F isr., a I Fis Fiscal 2009 2010 20,11 2012 $ 1,450,472 N/A $1,284 ,463 NIA 1 558 443 N/A $ 861059 N/A $3, 008,915. ................. N/ A $ 2,145,522 NIA $ 170,429 N/A $ 1,05,7550, NIA $ 282,232 $ 282,232 $ 2,47,511 S 247,511 $ $ 0 $ 72,790 $ 73,206 $ 282,232 $15W8,53 $ 734,2 565 $ 8,99,082 Participant Informatiotri Active, participints- 172 N/A 172 N/A Retirees, Dependents, and Surviving Spouses: 31 N/A 16 N/A Total 203 N/A 188 NIA 7"he R�),Ilowlng key were chosen by the City,,-. 1. 1 t1s, , ref 1t Rate,,-, 5.191% E�,xpt,ctedt,.otig,rer"tn Rate of Return on Assets.: N/A 3. Healthetire (inflation),and Retiree Contributi"on "I"rend Rates: 7% as of July I � 20 10 redixed, finearly 'to 5$16 by fisical year 2",20 15. and remaining at 5% thereafter. 4. Partliclipation Rate: 20% of f1iture retiree�,s are,;'issumed to elect tnedical coverage. 70% ofthe future refireesw1w elect inedical coverage and are married are aSSLITTled to elect, spousal coverage a,,,, s well. .51. Marital Assumptiow, For 'fijwre retirees, 601,�46 ar assurt"iedto be miirried, and maless are t,,,tssutned to be 3 years,'i older than f maless. 6. Arnortizfiot,i ��,inxietluxt 30 1 year open (level dollar). Actuarial valuations ofan ongoirig plan Involve estitnates of the value of repwrtexi aniotuits and zusstimptions abx:nit the probablillity of events fiiiir into die fi"in't,tre. Exaniples, as', detatiled abovel, 'include cisstimptions aboutfuture eniploynient, mortality, and the healtheare cosst trend,, ACtUarially determined amwnts -,,,irie sub i ject to continual revisions as actual results, are conipared with past expectautions, and new estimates c,'tre made about the fliture. Actuan'al calculatlons reflect a long-terni perspective. Ttie schedule of f"unding progress. preaset)ted as reqUired supplenientary info, rmat1ionfi,,,,,,)11ow,1ng the notes to the financial staternents, 'is dessig,"ned to present triultiye,,ar trend info.''rmation abotit whether tht actuarial value of plan as..wwts', 'is increasing or de, reasing over 't�itne relafive to the actuarial 11'abill'tiess 'for, benetits. "I he C"t v U 1, 1 M J , of Kalispell hass, elected not to fi nd 0 )is fiabifity. so 71 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf CITY OF KALISPELL N07"urn S FINANCIAL ST'Al"EMENIS "I"he benefits t1te ,ia 9tbs expLrxcted to provi"de are asstigned to appropri"ate accounting j.'), rtiods usf',ng the Pro"ecud Unit Creditcost 'I metfu.)A as described under Governnienu,,d Accounting Sumd,,airds Board Stateinen't No. 45. For emch picirticipant, ati actuarlW prese'nt value ofbenefit total payments; Iis determined as of the tneasurement date. Pr(,'.)'kw.,ctions ofbenefits, t r titianclat reporti j I Ing purposses aire bassect on, the substantive plan (tlie plan a understood by tfie employer and plan tnembers) i,,,ind lincludethe t�j,:)e' of bentfits provi'ded at the t"I't-ne of cact'i v,aluatlotioand the historiciii patt m of sharing of benefit between the cinployer, alW plan members to that poilnt,, 'J"he n"iethods i'ind a. sistimptions tised inctude tectitilques that are designed to reiduce t1w eff of stior't- terin volatifit, i ri,,'d fiabifitics at"W the actuar"al value of as's, I I j ty in acttt i I I consistent with dit lot�ig-tertn petspc��ctivc of t1le calculafions. H. Amounts Due Ft-,,om avid Due To other Governments On Jtine 30, 20 11 '41, the atnounts, due kom (,:)t,I'Ier govemments; cotist"Sted oftlte ft',410wing., Ger* rasl Fund Debt Se,,,rvk,:,e,, Funds Dtix,w. fr,(xn: ArTiount Dftom: Ai notint State of Montarka-Video Ucense Fee $ 8,50 Flatees d Cminty-Taxes $ 34.795 State of Mwtana-SI3372 Reimb. $ 69,9,88 Flathead County -Alcohol Enforcement Tick'an 1,289 Totall Governmerital Furids $ 707,8915 SUb 1"oUtil $ 72,127 'S R"cmut�,,, Funds, Due, from': Am(xint State of Montana-S R3.372 Reimb. $ 67,036 Sit to cif Montana- Pres(;4,ve Anieidca Griult $ 20,309 Flathead County-'T'axes $ 57.726 U,,,,S,., Dept, of t-L U,,, D. $ 57,873 Fla, thead County Sheriff I'Dept. $ 15,157 U,, S,,, Dep t - of E r*rgy $ 330.4,27 State of'Montana-MDOT $ 6,83 U.S (',,),ept,,, of Homelannd S e c, $ 262,802 EPA $ 56,903 U,,,S. Dept,.. i)f Justicew-GranIs $ 31,967 Sub Total $ 600.973 Etit .jt!12�!e Flurids Due from," Amount Flathead County-Taxes./Miso, 37,143 Total Btishjew-typew Funds $ 37.143 U.". .. .......... Total City of," Ka-fispell $ 7145,038 M 72 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf 1. Rcitnkted Cashlinvestments 0""I'A" OF KALISPELI, N01""'ES TO H/NANCIAL STA"T"'EMENT'S The',f Howin, I m,,d casli/investrnents were held as of June 30, 2012. The. e invL I g restriat, I an,,iottntsi are re -pork within t'he cash/i '�sttnenl accotint on dw (',"","omblt"ied Balanc. Sheet. Wtt I'M PA,Agtjvil Water on Reserve (41CIUdes SRF" & B01) Plant Investment/Impact Fetes (1) S e, we, r Operating Reserve (2) Bond C,;onfingency Plant Inveists"nent/Impact Fees (sanitary) (1) Plant, Investment/Impact, Fw,t treatment pliant), (1) Plant In vesstment/lm pact, Fees (storm) (1) Treatment Plant Replacement (3) "ro�, tal busimesms-type, activities restricted ca'shlinvestinents a-' ' —' �ai Impact Fees Capital Urban Forestry Developers, (4) DebtService Airport, TIF Bond Reserve Other Bond Resei ve Total governmental activities restricted cas''h/investments Total restract ed c;ashlinvestnients I -Jt�fl-1 I A dditions Subtractions ' 3 O,-J u n-1 2 $ 515,449 $ (55,330) $ 4,60,119 448,35>4 202,331 (174,772) 475,913 190,0100 1 9110X0 1,371,162 (38,6 1,332,469 1, 752,917 135,010 (25,00,0) 1,862,927 398,388 160,842 (225,000.) 3M,230 573,529 98,392 671,921 §L 5,914,395 1,017,475 1`634, A 11) 6 2"97,459 298,802 126,929 (143,99, 9) 281,732 97,834 185 (3,113) 94,906 184,875 184,87f 5 305,075 2026 00 116'7813� 414,292 886,586 .3tL, 1, 1.41 ��2.6�3,89�5�9�75,8�05, $ 6,800,981 $ I 1,370,589 M06 $: 7 273,264 $ §.998 (I) Plato/ investi"nent/irripact f'ee ca, ti. Monuana State legislatiot"i regiflatirigitripact to fin"id c,� pit/ I improvemerits, NICA 7-6- 1601 throtigh 7-6-1604 (scc'7-6-1603 twelow relateld to cxpending' impactke/ ), be, atne Of five April 19,".2005 aridsets f"bah'the pr(:,�cedures and req1turements, the impw.;Itlon by, local goverret'its'. Ori October 16, 2006, by `ff ordinance no. 1587, die Kalispell C11try (I out�ic*tl,(i,,ut,,/Iiort,;,.rA,�.d and establishedthe procex:f1ure and Irnposition of impacrf es to ,in capitzil improvetrient. related to additionac l apacitti ly (& III Towji). Masa"i,CA6-603 sttetht the coectoexpedittirof limpact 't", es must be reasonably, related 'tothe be/Nnefits, acerti, ri 1, g to the developifnent paying the Ini pact 'fe'es. Operating reserve cash i's re,/-stricted according to bond arem , ent (third part gy). (3) "T"reatmet'd plan't replacernnent cijsh is restricted by an agreement writh Flathead County, Water District (third party). (4) Urbtin ft)restry, receivess cash from develi(:)pers to be used to plant treesf.- in rtew city, developrnents', (ttilrd part�,). Dtiring the 2012 fiscal year, there were no adjustirients relatinfg, to prior years' made 'to fi,ind bak-ttwe or retalne'/�d U'riling,'s accounts. E 73 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf „ , 7" ✓Nf YmJ» H - �, IJV, ,�I!u�' »iN4 !�Wr 'gyp ml JIB � f11�L N017E,"S TO ,,fr, rx, S I err Joint % rep e� » ts . :e tl" c» �tn t„ �t"- „ tw t� s generally - e , w e tfibytwo "r more r r» �r ",�specific i c ,I m icipati e which a rein lial : Ing I , .. , t * o int control, in Nr the �w t. i� KK , .. fdi�,, NM m s, ret� r,, , '(,") � ,, , . ' d e �`"'mJ�rr ' �»: ��Um , rvw�.l . an g financialoi , . City -County I-Jealth Department, "Ilbe t t f»uw ��t t, „� f � � „11�Department : r, �` ,» ; ,fib .uw „",�,.. mm ��', u supervision w and control I the J,�b ' ,: Health .. : „ �, .. N'rr. , mr i.. m w .. "'w ,. : 0� „ipYr. �i y ofKalispell. .,!,- f � � � r t operatestindert1�" ww tJ ," t w�f;t � t � "I"he l consists ,�� K" ^r :rs stix i : ^„iae -,,J»i.t ,be „ o-w eroti :. Commissioners. T' V . Department, is i.aeln addition 'h to revenue :r generated providing health services, by thet,w tcevm that �x� , ''�', � � 'm" �'" � i.. ' m„ " j m» all . , m� m°",�, , '�" � City i I mi m� ,. , w. r r„"D J t t ,lit s, e all �,"� t� m e t t "s e taxed J, N� The operation is K t:ef tl,,ie COUnty HealthFundand mincluded, tri the general pu,,rpose financial stat emi, of Flatheadt t.l: dRevenue Fund,. 2. Courtyard Ap,�irtment,,s-/Cot,ntiiii,inity Action ction P�;" , Itt r In Octoberof 20 � 2the City, d their int rwst � o, „» �Apartments, rt, „ to Community Action a ,„ ; Northwest mrt etMontana r t i � '„ , "s,rces .,. „�the ,m» t �s debt , .t"t; o'the ,C, rt, ',,r, rt, "„�� , rsatisfied. ww Dispatch „r »,J . �J� �� I >,t"^ f,� �r ��rt��, rd� �r, ��,rrJ tY �� t t t �,f„t " ��, , w ��w, t w", „ and °� ,w w I Flathead � ,°gym , of w»t�h� �1 t "�,t f � � »r � 1 N,��tr operates,�, � supervision , .w r � t ��: ��r, Comm'� �.�.�. w .: m mm .: . w: , :. � mm;...^'�, � r : J. , i. � the Flathead ,�'�. ,. , ,.w,,v. ,NWJ ,. .. � � m» chosen t �c t m„" "f t e f l he � s* c �� rrs, t tY d C rite r t r by the Board of County,,,h swa ttr other electedc, County offictx,andww from �f ch of the clities, ofKallispell, Whitefish,and Columbia o Dep, zartment 'is fintancedby ftinds received r ftom tlie State (t mfees), pursuant r� t o Section f gy. , M.C.A. Any additional � �operating w t w I ill » „ shared proportionally bers. ,"1gar the supervision oftofttie Mwtr , the Director " and directstafftocarry, out the res :, s , t t t s, Of ice of w , Services and the Flathead County ire Servlicc, 4 r r" . L. C"ounty Provided Services "uw : City , ,. w� �� ,.. a .�� ,. nir pro, financial ".. �",...:. � services. fib. mm ,.,., Flathead ,� I io �, ^y� wn ;: ""�.._ ,m ,. 'and .. ,"M : � n '� r�F ,, 1 s cif c s r ,,County.. w, t- s s c - t s for r col r the ,Rt, tax »� �,� sm� t crr�w t s ��r eJ by the Countyr, subject 'to distribution to t, he vartious taxing Jurisdictions ctee in the County. The collections made „ the County on behalf ofthe C4y are accounted tb,,r agency fees ass-ociated pit -,City Specials t . M. RiSk Management "I bmt �.. cisa consi . wr Y e nuniber of risks ."ss i u" , :. to � �. ss ryt.". ". �. , t t mr , " employee torts, w,, '. professional h uw m't x., eirrors anderror otnissions, , ro� r t � danial rr." compensation, ix. w� ri,,, ,. : �, mm .. costs i� '�� mi �. �' '"� , , ,,i. rxi " ,u. :,� rm �, .. " .., �"'� .!� iw of x �.' o. ... -,' mJ " insurance ,, . �' �� p i � ^�'; ' fir, ,, un used, wA ''"� ..' ... provide '�. , "' �.� i - �; ',. d f is Ira e , w� is f e ,. rr t " yet ' are s m t „ KJ J. , e r t, risks., ,J6 r w Policies., ray mw 'risks wfloss, ss except r relatively �:,ct,� b„ a a t� r „ ww�r» ar° t1" t. da,mage, professional teCity F »tstatewide „ sd f tMunniclipal Insurance Authority, f lw r workers' r r tort 11ab111ty,, cover . Employeemedical insurance provided w through 64 74 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf CITY OF K, ALISPELL. " r S T H` rN L W "I" T W wm}I a sstatJ -wide health hinsurance -)r U Y , wm We"r l, Given thelack i mM,erWr a� bbr,the W s acoverage : G wfw , la, , to ti l ssses ftoni environmental darnages,, � „I i r :.. :: M - �k " �" �". ""Mw i ii� .. " a^Nv i. +$' `�., �k r r � l e cove 1 l a 1 e City lKalispell r e with otl r It o f the t Municipal J l l s. ,. self-insurance l a er��Worker's GAa I t rver ,;w e. Both 1I entity r w e re tl Aerate � common wr wmanagement and r r J.e JNn t s for the I eJ lr goverriments. The Iliabillityts r t,,%.IWw in 'tort, action aree $750,000 per liand $1.5 million WllWo,per o ,i-I ren.ce:with � ta$ 11,25 e det w le per o cr e e, . �to tort, lawl tsn the nwt ' ww :, it to .l .J r mlly on. W ry�W e city at pt: w n,Jra ;. Gal wre t�y I . wmr- Its kN 1,ee � I � � �Iw w u. nr.ee cerz t ewhich �el -,ya log teI a to the employer fiinds ad;w total �a JlaL ��wages. l h agreements reN .ts fibr b aan of t pools rw1provide wl that they W.1iI., s II;Jr n r � I _ I w w r; , � � ; ,n laa J JG �r ,.� � G � � , I ; � an, I _ ; G;L � ; � r _J ; a. a issued t it l �� rep "I"lit tort l n l t plat) workers' er �watr pro r Jy J the at of I n w million, , r �; ,, � �II r r W � �� Jr a �J„ � , .. ;,� Mh � ... , nm" , I. � ,. ,, ; ul N ' �Nn "ae rW, o ,. WJ; � , ar, J, ; ; I. wr vWy „pop � ar , �,.: m , , ; l ��ll�� l ll re�r ;r Betel, t e�hatel la,�� tl �� >wGraJW J�N ��IW 11 �;r e� GGr J� � � W WG � �w� � W, share ; �IG G I�, N, r rn, �� r a � N ,; IJnG; N�I a � G a; N Wla � �r � � I � �,� , � �J e�ae operating re�e;e .W �,n ,,�eiet to coverthe debt �� ,,: �c//e;.. ,,;;,,It W�a et �Nt to ll ,r r�W�tr l this al,,l share pw'.. .. Iw W I N�. iJG ,IWI. IJ,Y, M r .J. W, !!� � Ir °'N "'w. � ,. IW W. rr ilVr. W ,. I ..W '.� i .+ W,, W,. ,, .. ,. ,.Wr. c w� , 'IW , i.. nal : a , . G W; w i 5 l;, l� �l �� a l l 5�� t W l�� Ja w� � N �� 1 J fl �r G, t �� ,� Gr Workers' �„ w �t t Iw the ��s ;;, � ; re� aN ,J�e ;, N Ali s currentfinancialn toti, J("'Ity,d`J. texpect to`y e ,J t ' these Wte�wSeparatefinancialstatements are v l l �Y r t o t N a Municipal t a r e th rl t W On October. 1, 2I0Kalispell �1�is ill signed, rel a , I &raw„ I e t with y other " t"a Cities, te, through t e °t,a prW e..ha1 r- �a ww� �, ? � �llN � 4E�bnl. w wV J, w" � mr � 1, 1',�J, i � , tr e r ,I. r i�r � thrr t, erete ate � health insurance r rl� � � t� pay t�e t;tlall of �J m �� 1 ��Nr 1; only IG �G W I � ;, � ,, , �. � ,,, � �J �„ ,, „ _ �r, a, „ J , , GG �I ,I , a r a �r G iWpl i..rvv ., cover +VW. ;, r ., m.: W vWlr- >< � choose rc .:. 'ww ;�,. dependents, " Irv. ...w pays ro. w y ''"�. ,Uli the I i I � "� r, � ," ': j� ,"�V, , Yam' i i °'� JAM � r o �51 "� r, ICJ r: .. ,: >' e _ ��e t, � r�rr to ��1e�wl For ep1o�� ;;� t e�Ge�r t � the �t �; ,�,I,�t a the ex,traeta. N. i>,r, Litligation �„ W�� Jw wti � ,� ,W w~ G�W�'�W �W wJ W � "I ,,,. Y Jn �a I,r , � ,� w ,W � � a�, r NI � against J� a� ,r ,Ja, I N ,� YWr, A, J I. a I The f ll s, list lit at e a st the City wl theamount dam, � claimede la l 'l he fN� f Attorney s e a ; e : Iati J , iaw t the ate,J J , J each e,ia,sew 'The a , f� a :s W aiN 1� tinsurance w1 �rae, that �" cover H,er or part, w tle damages.Accordingly, provision �� has een made r thefinancial �w toJG vs -'for tlefwcontingent 1 s� i fi G W Damages TalmageRe >$I os000 Parker Spelcific Performance Broym, Unspecified Burke Claim ci 1 Loes Potential* Status StatedNot i °ri ; Court Stated DistrictNot w II Stated "l l Court Not Stated MMIA '„ nut —In i e City entered nkn, ~ �cW � wl ty development program, w ror o hip a e_ n from om a c m t eeto l e� t1 , Jw t, inake available to eligibleapplicants (low-to-moderatew ewmre�� taw loninfior at least ealfofthe reqtured rehablfitaAion cost. st. ee ftinds, fromthe City, to�: with loans -'.r the Firsvt, Federal B e l Savings Bank (now ('31a.e rI Bank) ., the lender, �provide .e the total 'funds required W the : w M,o W D f rehab ltt, w of" W si unit. At the time the , loans are w,� h tlie G ,, e,� w the YI 0,,-,s the Ct s l� r l � � t- G into tG, borrower's c(,y� ls , Nc G J account t First Federal. lgy Vi b Nt M, W loan N secured by the prop,er. t . , and . v le I . third lien , ol s Wp t iwt••• I . Repii t o t r City, It loan ,'W 11 t begin until 3 r days after thelit ,see e for,coristruction oft e t l Wbeen paid off.� Cit W lon s Int r we; until such time ass rep, J % a rstii eWW w i.t of a p r t lender wp c taWN n. exceed 2 ,r per propexty vt. tt W y,ar pay Wick. 75 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf CITY OF KALISPELL N01'ES 1`0 HNANCIA/t., S"T'A1"EMEN`1"S, In addlition, wheti, an owner -occupant 'is unable to aflbrd a privateo lender loart at the preo,,-deternuin, d inter,sit rate I reed to by the City lender, he. or, she may quallify for Clity financing. The Cay, may provide a d1rect aw loian of'up to $25,000 �with a, varying interest rate (as. low aszero percent) or wit h a longer, wnort , lzattion per"U',,)d (rnaxxitnuni, of fifteen years) or a deferred loan to be, r eid simultaneously later (Jate, with a, balloon pqment, or to be released atthe end of �ten yeiars. pal 1, 7"he City has $47.�,),,58 recA),rded ass hou/s,,;ing rehab loans rec livable as (A'Junc 30, 20'1,'..,, tin tht Comtnunity Developnicnt L.Alan Revolving Fund. 11ie ahx,,:)ve trientoned lorinsaire offset with dekwrred reventie acr,;ounts. Uncollected receivables in govertimental f1inds are offs -et witfbrred revenue accounts, as, explained in, the 'Imsis ofaccounting". 0t,.her loans receivable ofthe 0ni,,imunlity, DevelopIPWItLAcan Revolving Fund: A 15 year loan at 51Aoto Flathead He;i1d'i and Fitness in N(:retnber 2004. OrIgi n.,al 1,,.c,,)an an�tount $ 74,250 June 30, 201 ".2 balance $ 44, 7, f A`M- —11" wn-ftx —Dn LIC, k, I 1 11.1 r I �nt � � P, " 1� I lc�(, I (I I m) i C �D e � �11 I �m 141 m1t EMI)LIS120. M, In fisetil year 2007, the, City entered into a c(,�,,)mniunlity development pr(,),, "a/m,witli fiinding kom a commtjnl,�y dtwelopment bk),, k g,,ra/nt econotinic development prograin. Elligibiits , for thc�s. low interest 1(.:,�,ans Iis tied to the creation of obs, within Ka,11speAl with a percenv,tgie of die jobs created to be filled by k„ertate-income persons. The following loans have bee, n made by It Clity using thee,,co° �elopment prorriam flinds: A 15 Ye'llar loau'iat 6.5% to Distinctive Countertops.; in July 2006. Original 1,,..A,,,,)an aniotmt $ 25,000 June 30, 2012 biflance $ 23,285 A 15 year loan, at • 5% to Distinctive in (),ctober 2006. Original Lxwan aniount $ 288,619 June 30. 2012 balance S 271 ,893 A 7 year loari at, 7% to the Kalispell Hotel (1Ai1t(,,)T)) in July 2007. Original L,oan aunount S 150,000 June 30, 2012 balance, S 54,562 A 15 year loan at 6% to A,(,,,,;APE Horrier 009. Original Loan arnotint $ 42,500 ,June 30, '2100 12 balance S 36,224 joral'Devolgriftnent Loan Re'voty" On May, 5, 2003, the (."I"ity, Councill passsed Resolution No. 4,780 esLablqh ishing an Economic Development Revolving Ixmii Fund (ED RL,,F) fbr small busfline:ss retentlion and expansion. Tlbe resoftitlon also cr, ated an Econonific, Development I.Axfan Review comn"il'tteeto proxtsss all applications fbr asisjist,4ance., Additionally, on August 16, 2004 and again onNovember6, 2006, theCity Council, by, Ressoltition No. 4,929 and 5158, respectively, authorized the 01y Manaiger, to enter into loan aggreeinents, with the LInlited States Departn"ient of Agriculture, Rural Developnient office, in the wrioun't of $520,000 and $750,000. hesser inonies ill be Ltsed to aussilst Iri, the retentlon arW expansion of" sniall buslitiesss, which may surnulate economic development actlivity by tvatesec fo ass st ng tlw pri tor �where a tundinggap exists and alternative source4s; of ptiblic and private financing are not adequate. 66 76 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf C17' OF KALISPELL, NOTES 'TO FINANCIAL STA"',ff"MEN"IS 1"befo1lowing k,,)aans, have been made by the City using the Rural Developnwnt fijndss* A 15 year loan at 5% to Flathe4ad fieal'th and Flitnessin November 2004. 0rIgjnalI,,.A,",,)an amownt $ 90,750 June 30, 2012 balance $ 53,076 A 7 year Iman at 6.25% to 1.11ttle Caesair`s in March 2006. Orliginall A)an ai'fir ,,iount S 37,500 June 30, 20 12 bahttnce $ 1 �782 A 15 loxtri at 6.5% to Distinctive Countertops 111 July 2006, Original $150,000 June 30, 2012 balance, $ 139,462 A 10 yea loan at 71% to Cr,(,,),ssroacI,,,s, Re'afty in June 2007. Oriigl'nal Lx,)an,-ctmoura S 150,000 Jtni,e 30,'*710 12 balance $ 125,438 A 7, to It") I 1 1, ye-ar loan at 79/` the Kalispell tiotelto l (Hin) in Ia,1uly 2007. Original L,/x)an atnount S 150,000 June 30, 2012 balance $ 54,562 A 7 yetar to at 7% to LJnfinlished Ntrititure Creations in April 2006. Original 1..oan amount S 50,000 June 30, 2012 balance S" 6,900 *'The balgance of flit's loian $35,425 was forgiven. 'Tlw defaulting partiess (Botv'ffiornas) jagreed and sle.,ned promissory notess f(.,)r $5000 each. A 6 tnontli loiin at 5.251,, u:) ("I"lacler VIR, alley End(,,Aonties, Inc. In January 2012,, Original gal a S 35,000 Jtine 30, 2012 balance, S 35,000 A 10 year loan at to, Parkman Properties, LLC (I'lie Edge Salon), in Febr/tuary, 2012. ) Or1" ini ,a 1gal I.Ax-n amount S 77�000 June 30,"..'1012 balance $ 77,000 A 10 1 1 ,year loan at 3% to, Whipps, LLC/in December 2011. Original I ,A,,)an amount S 50,000 June 30, 2012 balance S 50,000 131-RAC.4.0 followl'ng lotan was- made by d'ie 01ty usl'ng L.Jrban Development Ass)"stance Grant (UDAG),ftinds: A, 20 year redevelopment lown at 5% with Big Sky, Manor lin Augus"t 1999. Orig'Inal txnin amount S 124,000 June 30, 20124 balancie, S 59,693 M 77 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf , tw ,mP Nu, 1 ANWw a i,,,wf Niw T ��Po ENilk,,,, mumw,wr� W ,.. wig o ;. Housing 44790 Small Business 23,285 Jobs ' ' obs ,5Jobs 36,224 Jobs, 8,850,000 Low r : Y)me Housing 27a.3174 ' ':' Housing 1629086 Business1,782 Small 139,462 : SmallBusiness 125t438 Small Business, ,4,5629 Beall Busines rei.,iu 35,0000 Small o. - si s ` n d.. Ill , ryess 602,913 *see note R,,, Long Tenn Loans Rewivable Crt.rtas, rece of the Cy, ,,trt., becausse of cert,it e��,� g when �,xnd lfthey will be collectc%4, are no longer "� � � �'" Ric "� �� rc �r '" <, � , ,� i � � a: �, „� ,�� asset the balance �h��tt l , �� f �,� �� receivables, t „ � �,f 2 � t� ,, 0 Q. im Wastewater " - tI 'W�` i Plant t agreement it, Evergreen 'Cityrf a s»ell et„ e� t � t r„cal o reemet � t t Evergreen, Sewer e r District, � st� t, �. for treatment Wy � $ the district, at the, Ct plant. "rhe Evergreen tr t sewer went into operatio1994.n in July The City, bills Evergreen mont or debt -,:., ,'�., ,'.inn` ',�' the 'w.. � ,,, � m�� ''"",�n�.., ;.. „m'. `�' �� r " t � �� f t principle t r 'st r t, t. � der t� also ,ills for maintenance and operats and replacement ,ry*t,s �. � e x i-reoi t :..ed on n e.er flows. « q. gr'eP Sewer x r , ,r, . t aequlity interest the replacement account, carried on t t, s b; k m, The 1,ce of"the accourwas, of June 30 s $ ,, , , of which Evergreen's t r t is S246198 1. R. Long Terni s Recefilvable .. , hID ei all U) 1) M ew L. u, 1 :1 t In Atigust of 2002, � t � Wtl. " i� � entered t�„ tw u. notes recelvable ag ,. e,s with> �N,,P, rtu 'r rs, L. (1-lartipstead Partners)o ,, e y Avenue tin Kalispell,r ,a ,, n gists, r if �� t complexknown ass vet Independent Lg Center. As Ott ted, inthe agreement., this propertyis restricted , low incoine, housing, r shell r nmiuchfor a perlk,)dof t five years,. 68 78 of 178 3/7/2013 4:22 PM untitled - FinancialReportbl.pdf http://www.kalispell.com/finance/documents/FinancialReportbl.pdf CITY OFKALISPELL. NOTES TO FINANCIAL STATEMENI'S One of these notes- 'I's Rx $480,000,itind btuars interest at 1% per annuni. "'Ilie second ofthesie notes 'I"s 'for $400,00(1., and bears interest at 4.8 114 per annun"i. "T'hcse mature on February 28, 2032. Paynients of intercst ot'i the note arc dtic on or bef(,,,)re 'the last day, of thx%, tax ble year, tothe ext(,,,,*,nt therc is surplus, oash, as defined by tfic note. L,Jnpalid linteresstshall accrute, until paid, but not coinpound on the first 1(,,)an,,, Payments of principal are not reAquired until the tmtturi�y date of the, "rhe notes tare :44,�xtjred by a del of trust on the property. Accrued interest itis of June 30, 20121, is $47,655, an(I $222,720, respecove ly. S. Subsequent Events and Refinatnce�d On Aug 0, 2012, by Resolital'on No,, 5576 and Resolution No. 5577, the City, Council approvoxi the refinancing of die debt, of ,; t s, t 2 dit Water and Sewer, Funds. Re*,,,','ioIut'I*on No. 5576 related to fir"/st aniended and restated Nvater sr.'oem, revenue b,,(,,)nds (DNRC Drinking Water State Revolving Loan Prq g,,,r 1 0/ 007, and bondsi. ., . am)- atnending authorIzIng resolutions adopted March 5, 200 1, Ju/ne 4, 2007, and September 4, '2% Retiindew/,d pncipal of the tbrt.�u,.,'; b(,,),,nd issties wiziss, $404,000, $526,000 ancl $1,340,000, respectlively. "",f'ot I Water fUnd debt service relatedto these issties, prio, r to reftindingwa!,si, 857,582. Alter the refiundi*ng, was complete(.1 on August 30, 2012, total Water fund debt, service related to tliese issuess was 2,558,345. Net savinp- firom reffinditig the W.,,,,iter ffirld 'r venue bonds will be $ 9'�,),22V 3 2 7. I Re,4,s-olufion No. 5577 related to first amende,,(strtr sewer s n Coritrol St4ate ystem revenue botu.5 Water "I, (DN"RC I Pollufio Rewolvirig Lzari Prograt' ); ameiWfing authorizin,g res, olutions, adopted Rdy 6, 2004, aind October 15, 2007, ant"] bonds,, Reffinded pri"'nclipal of the bond tssu(,',:;s was $1,009.00(,) and $13,026,000, r(,/),,,,,,.,s-tit/�r,,t,,,ively. Total Sewer fiund debt, service relat to thetse issues, prj*or u:) reflunding was- $18,370,225. After the refunding was oc,',)nipleted on August 30, 2012, t(,,,,,)tat Sewer fund debt service related to thL/','*S.,-,e issues w,as 16,290,3 10. 'Newt, s, vings',, ftom refUnding tfit Sewer 'fijnd revenue bom"Is'."i, will tye& $2,079,915. wl'v; .51001-1 On September 6, 2011, by resolution 5527, the Kalispell City Council directed the Kal1q.),ell Planning Boitrd to review the p(,,)ssibilit' I I I I I I I I n I I ly of expianding the boundgaries, and extending the lif of the Wesit Side TIF disact which was to su, set in fiscal year I. Resolution 5.527 'foundtfiat an of"bill, it exits contiguous to the boundanies of the Wewsst Side Urban Renewal District and that rehablillitation, re(ievelopment or a combination th/txeof, wittilin such� ttreca is neces.;a,rY in the intere.,si't of the public heafth, "."ity ofKaflispell, sia ficty, morals or welfare of the reslidents of the ( Resolution N(,,,),. 5550, adopted by dw City Counct'l on Ma/rch 5, 2012, authorlized and dircoed the issuance and sstale ofa $500,000 Ix Increment IJrbari, Renewal Revetux Note. Procteds of wch we;,-'e� to be us-ed forthe constructyion of2 pr(II')I*ects; within existing West Slide "'I"'IF district. 1"his 25 year note, (callable as early as 2014) served to extend the 16e, ofthe W'(,.*, t Side Tax Increment District tioni two to t:wenty- five yearss, ahso aeconinio(liding expansion of sai'd district. Ift ft wo A I �" reading of an ordinancew (1717) to expa/nd the West Side Tax Incremetu Dlisttict took place� at a City Cotinclif rnt,-ten'rig on Novernber,5, 2012,,,,, M 79 of 178 3/7/2013 4:22 PM