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17. Audited Consolidated Annual Financial Report Fiscal 2005CITY OF KALISPELL, MONTANA AUDITED CONSOLIDATED ANNUAL FINANCIAL REPORT FISCAL YEAR 2005 July 1, 2004 - June 30, 2005 CITY OF KALISPELL ANNUAL FINANCIAL REPORT TABLE OF CONTENTS INTROD R.X SECTION Letterof Transmittal r.a...■..a..a..r...a.r...r.+.r...r...►....a.w...rr.r.a.+..aarararar.■.a.ar...rr.+..r■a.a■.a..a■.a+rr.....aaaaar►...r.r..r.w...rww.«a,..aar.. 3-5 ElectedO liclals...r+.+■wa.aaaaasa..r...a...rrar■...rw►a■...rr■■rrar....■rr.r.....■a..rr....aarr.r...r..rrr....aa.a.a.arrararr..a..a......a.a.a...r►..r..rrr...a.ra 6 FINANCIAL CIAL SECTI Management's Discussion and ■ —1 ■ IndependentAuditor's Report..a...a..a.r.ar.r.....r+r.r.r.ra...►aaa.a.,.rar.,....a■r..a■aaaa...■r..r.►waa....►+.r...r..aw.....a.#r.r..a4a.rr.r..raw.wrw..1849 Basic Financial Statements: Government -wide Financial Statements: Statementof Net Assets.ar.ra.r.a.raa►.a.rrrara.raaa..ra.carr.., aa.aaaaa.a.a..■ra.a..r...ra...w.w.«a►...a#......►aa,wawrra.arra►a..w.wr. 20 Statementof Activities..rr.r.r.+rrwr.raa..aw.w...wa..+.+►+.r.ar....a►r■raa.a.ra.r..r...aaa.a..r.a■a.ra..rw.....■a.aaa►..ar.r..wwr.aaw..w.......■ 21 Fund Financial Statements: BalanceSheet — Governmental Funds .awa..■carr.■r..■r.r.■■rr..■r.......warw.aaa..■a►..r.w.w.r.a.a.as.r..a...r.r.rw........r...a.raa 22 Reconciliation of the Balance Sheet -- Governmental Funds to the Statement of Net Assets......... 23 Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds... 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities...........w,wa.a....r.a....,...w.r,....,....+.+r..r..ww.a....a.a..... 25 Statement of Net Assets — Proprietary Funds.....#..,.a.a...........a....+..r........aa.ar.a.........a..a.a...a..aa...a...+a..r. 26 Statement of Revenues, Expenses, and Changes in Fund Net Assets — Proprietary Funds............ 27 Statementof Cash Flows — Proprietary Funds rr++aa..a■r.rrr+■ar+.w....aar....r.r.■..ra...raaraw.arc+.r.r.r.rwr..r....a..aa. 28 Statement of Fiduciary Net Assets — Fiduciary Funds ..aa....r.rr.r....w.a.a..arra..++.w...s■wraw.,a.►a.r..a+rrrr►.r+.rr... 29 Notesto the Financial Statements ■a.aa.a...aa,w.aw....wwwa.ara..raa.rr....a...wa►a.a....+aa+...r..a..,.r.a.r.Garrrr...aw#..aw.w.arwa.ar..a..r 30-58 Required Supplementary Information: Single Audit Section: Scheduleof Expenditures of Federal Awards.aaw■ww...aa..r.■.w.r...aa..rar....waw.wa..aa+►aaa..■..r..w.a....►ra.a.rar..ra.ra.a■ 59 Notes to the Schedule of Expenditures of Federal Awards w..«...wa■a.ar.ra..r..w..ra...a■..r..a.r...rrw.ar.wa.awwa.a..a. 60 Budgetary Comparison Schedule -- General and Major Special Revenue Funds ...aaa..w.a.aar....r..r.r.r 61 Budgetary Comparison Schedule — Budget to GAAP Reconciliation — General and Magor SpecialRevenue Funds ..+rrrr...rr.rra....wa■.wr►r.a.ar.■.,.araraa..a.w.ra.a.....raa.r+.r.«w.aaa....ar.arra#..raaaw.aw....r...ra.ar.a.aa...rr.r 62 Report on Compliance and on Internal Control over Financial Reporting based on an an Audit of Financial Statements Performed is Accordance with Government Audi ing Standards r.raw.►.r...a.r.a.aa...a.a►.rr.rrrrr.r.ar..rraar..r..araaarrwaa.rra,awa..a....arca►i.a.waa...a.a.a.a.rrarrq..a.r.rara.a►#r 63 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in accordance with OMB Circular A-133■.aarr...a.....■..r.#a.a.a....a..r.a.aaarr 66W" Schedule of Findings and Questioned Costs...■w►■waa.rw.■■...rr.sa.■aaa.■aa.aar. rar....aa...r.asa.rrr..+r■.rarr.war..rraaaa.rrr 6748 Report on other Compliance, Financial, and Internal Accounting Control Mattersararrar..waaaaa.aaa..a 69 Reporton Prior Audit Report Recommendations .....ara..ar.■..■w...ra..+rear#rr..rw.awa..■rar...r.a.r.rrrw.arw.a...a.a►..a. 70 CITY OF KALISPELL ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Other Supplementary Information: Combining and Individual Fund Statements and Schedules: Combining Balance Sheet — Nonmajor Governmental Funds7148 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -- NonmajorGovernmental Funds ..•a.a.w..... rrrr•araaa.wr►rraa►aaa/a►aar.r►.r.masa.■w.rrrrr.aaaaaaaaaraawaaaa.lraaalwawrrr+.arraa 73-87 Schedule of Revenues, Expenditures, and Changes in Fund Balances -- Budgetand Actual -- Major Debt Service Fund...ar•as./..!/.,..a..aar.l..lw..rrra.•ara.rrrlaaaa.w./aa...a,.lr.+r.r►,a.a.a/ 88 Schedule of Revenues, Expenditures, and Changes in Fund Balances -- Budgetand Actual -- Nonmajor Governmental Funds..r.+.a..•war.....++ra+raarra.aa.a..+. rr.r+.r.ra.rr..a.aaaa.r.a89-103 Combining Statement of Net Assets — Internal Service Funds.........aa...,r,,..+,.,rrr.a,.../l..a....,.+...r,.r,rrrr. 104 Combining Statement of Revenues, Expenditures, and Changes in Fund Net Assets -- InternalService Funds ,a...l......ara..r...a•w!,•.rrsr..atrasa..r.rrraEa.r+ +a►.a.aa.aa.rr.r►»r.aarraa..aa.waw..a,...►r.,r.arrr..fr.raaaw. 105 Combining Statement of Cash Flows -- Internal Service Funds...... amara.larraawal.w•rrarraaarrrraasaaaraaara.aw+•r loft STAnMCALSECTION *.aa//R,.aaar►iia/.!l+.+lar.aiasaa./!///..,/rar.alaaa.//Ori..a.!■//■a/l...aaar•a•a/.a..a*.\■.aa■art.a•.aaa //!a*/.H.r■+..■.r 107411 INTRODUCTORY SECTION The City OfKali*spell McoM"W 1892 Telephone (406) 755-7700 FAX (406) 751-7758 Post Office Box 1997 Kalispell, MT Tip 59903-1997 December 8, 2005 To the Honorable Mayor, members of the City Council, and Citizens of the City of Kalispell, Montana: State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of f nancial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, the annual financial report for the City of Kalispell, Montana for the fiscal year ended June 30, 2005, is submitted for your review. The Finance Office prepared this report. Responsibility for the accuracy and completeness of the presented data, including all disclosures, rests with the City. we believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain an understanding of the City's financial affairs have been included. GAI.AP require that management provide a ,narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Kalispell's MD&A immediately precedes the City's basic financial statement within this report. Reporting -Entity and Services Provided The City of Kalispell, incorporated in 1892, is located in the western part of the state, which is considered to be one of the top growth areas in the state. The City of Kalispell is empowered to levy a property tax on both real and personal properties located within its boundaries. It also is empowered by state statute to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the governing council. The City of Kalispell is operated under the council-manager form of goverment. Policy-making and legislat4ve authority are vested in a governing council consisting of the mayor and eight other members. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager. The City Manager is responsible for carrying out the policies and ordinances of the governing council, and for overseeing the day-to-day operations of the City. The council is elected on a non-partisan basis. Council members are elected by district to serve four-year staggered terms, with four council members elected every two years. The mayor is elected at large for a four-year term. All significant operations of the City, as defined by the National Council of Governmental Accounting, Statement 43, have been included in the accompanying financial statements. The City provides a .full range of municipal services including police, fire, building safety, planning and zoning, city court, parks and recreation., streets, community development and general administrative services. The City also operates as Enterprise funds: water, sewer, ambulance and solid waste. In addition., the City presents financial data for three component units on the combined statements. The Kalispell Parking Commission is a discretely presented proprietary type component unit. Tri City Planning and the Downtown Business Improvement District are discretely presented governmental type component unit. The annual budget serves as the foundation for the City of Kalispell's financial planning and control. All departments of the City of Kalispell are required to submit requests for appropriation to the City Manager. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the council for review. The council is required to hold public hearings on the proposed budget. and to adopt a final budget. The appropriated budget is prepared by fund, function, and department. Budget -to -actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For each major governmental fund the comparison is part of the basic financial statements. Accounting System and Budeetary Control The City's accounting records for general governmental operations are maintained on a modified accrual basis. Under this method, revenues are recorded when measurable and available; expenditures are recorded when services or goods are received and the liabilities are incurred. Accounting records for enterprise funds are recorded on the accrual basis. Under this method, revenues are recorded when the services are performed; expenditures are recorded when the goods or services are received and the liabilities are incurred. In developing the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal controls are designed to provide reasonable assurance regarding the safeguarding of assets and the accuracy and reliability of accounting data used for preparing financial data and maintaining accountability for assets. Budgetary control is maintained by an annual appropriation system-. The Mayor and Council evaluate the budget proposals of the various City departments to determine the operating level of the operating and pudic service programs. After giving due consideration to the input received from the citizens, the City Council adopts the budget. The budget is appropriately controlled through an on line accounting system. The control is decentralized to the point that individual department heads are responsible for expending within budgetary limits. Cash Mand Ment The CiWs demand deposits are interest bearing money market accounts. The City also utilizes the Statewide Investment Pool (S .T.I.P), and obligations of the U.S. Treasury for cash temporarily idle during the year. Rates of return vary based on markets. -it The City joined other Montana cities and towns to form a self-insurance pool offering worker's compensation and liability coverage. In March 1993, the Montana Municipal Insurance Authority issued tax exempt refunding bonds for $4,410,000 to fund the liability program reserves. Debt service on the bonds is expected to be paid through interest earnings on bond proceeds and other funds of the authority. Refunding Bonds for worker's compensation were sold in February 1994 bringing the total debt for the MMIA Worker's Compensation pool to $6,614,753. The City of Kalispell provides pension benefits for substantially all of its full-time employees. These benefits are provided through the Montana Public Employees' Retirement System (PERS); Municipal Police Officer's Retirement System (MPORS): and the Firefighters' Unwed Retirement System(FURS). The City of Kalispell has no obligation in connection with employee benefits offered through this plan beyond its matching contributions. Additional information on the City of Kalispell's pension arrangements can be found in the notes to the financial statements. Since November 1986 and the passage of Initiative 105 (to limit certain property taxes to the 1986 levels) to the recent passage of SB 184, the ability of the City to raise revenue for basic services is increasingly difficult. The legislature, with El SB 184, has lowered tax - rates fording the City to increase mill levies to maintain the same level of rev mWe The Cites financial position has improved considerably over the last several years. The additional from ftwreased taxable valuation and other sources, such as gambling, has brought our milled funds out of a deficit position allowing us to build cash reserves. The City's cash reserves vary between 10% and 20'% of appropriations. State law allows for reserm of 50%. Reserves -provide for cash flow between tax revenue receipts to keep the City from haviAg to borrow fiords for operations.. Additional revenues generated by increased taxable valuation come with the additional cotes of an increased service arca.. � The City of Kalispell "s Police and Fire Departments, Courts system, BuildingDepartn=4 Public Works and Parks have felt the increased pressure from the infhu of people to Flathead County. These p impact the budgets of all departments. The outlook- for the City of Kalispell is to continue providing basic services while looking for additional ways to fund the increasing costs of those servwm.' Acknowled In conclusion, I am able to report that the City of Kalispell is in sound financial condition and should contimse to enjoy good financial health. I wish to express my thanks to Any Robertson and Carol Kostman of the finance Ulmumut as well - as the administrative staff of the various depts. Without your help and input this report would not be posar'ble. I would also lice to give recognition to the mayor, governing council, and the city ager for their consistent support for ' . the highest standards in the management of the City of Kalispell's In accordance with Section. 7-64111, MCA I hereby transmit the City of.Kalispell Annual Financial Report as of June 30, 2005 for the fiscal year then ended. R submitted, *` DaftRick � Wills Deputy Finance Officer 5 CITY of KALISPELL ANNUAL FINANCIAL REPORT JUNE 30, 2005 ELECTED 0FFICIALS Manager/Council form, of Government Mayor Pamela B. Kennedy 1l1l2006 Council members: Kari Gabriel Ward I 1/1/2008 Jim Atkinson Ward III 1/1/2046 Robert Hafferman Ward I 1/1/2046 Randy Kenyon Ward III 1/1/2008 Bob Herron Ward II 1/1/2008 M. Duane Larson Ward IV 1/1/2008 Hank Olsen Ward H 11112006 Jason Peters Ward IV 1/1/21106 Other City officials: City Manager Jun Patrick Attorney Charles Harball Police Chief Frank Garner Fire Chief Randy Brodehl Finance Director Amy Robertson City Judge Heidi Ulbricht Public 'Works Director James Hansz Parks Director Michael Baker Community Development Director Susan Moyer Deputy Finance officer, Rick Wills FINANCIAL SECTION I A -P __ _U - i m; & -no) z i na a - imn - no - v m- u- i 1130 011L MU -113 u m As management of the City of Kalispell, we offer readers of the City of Kalispell's financial statements this narrative overview and analysis of the financial activities of the City of Kalispell for the fiscal year ended June 30, 2005. we encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. FINANCIAL HIGHLIGHT S ➢ The assets of the City of Kalispell- exceeded its liabilities at the close of the recent fiscal year by $6.9,,562,822(net assets). of this amount, $19,159,140 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. ➢ As of the close of the current fiscal year, the City of Kalispell's governmental funds reported combined ending fund balances of $11,020,140, an increase of $2,662,743 in comparison with the prior year. This increase can be attributed to the $3,000,000 bond proceeds to be used in the construction of Fire Station #62. ➢ At the end of the current fiscal year, unreserved fund balance for the general fund was $2,257,244, or 28 percent of total general fund expenditures. ➢ The City of Kalispell's total debt increased by $2,930,698 during the current fiscal year. This increase can be attributed to the $3,000,000 bond debt to be used in the construction of Fire Station #62. ➢ For fiscal year 2005, the City of Kalispell revenues for governmental activities exceeded expenses by $546,634(change in net assets). ➢ In the City's business -type activities, program revenues increased $5,092,181 (or 56 percent). This significant increase can be mainly attributed to a $3,582,338 increase to $4,856,418 in capital grants and contributions. of this $4,856,418, $1,426,627 of new water mains and $1,623,570 of new sewer mains were contributed to the. City by private developers. The U.S. Department of Transportation and the Montana Department of Transportation contributed $1,184,5 00 to new storm water and water mains during the reconstruction of Highway 93 south of Kalispell. ➢ Business -type activities expenses increased only $94,491 (or 2 percent). AN OVERVIEW .0F THE FINANCIAL STATEMENTS There are three main components to the City of Kalispell's financial statements: 1 ) government - wide financial statements, 2) fund financial statements, and 3 ) notes to the financial statements. Other supplementary material is included in this report in addition to the basic financial statements themselves. The City of Kalispell intends for this discussion and analysis to be used in conjunction with the basic financial statements and other material as an introduction and also as a means to help the user better understand the information. Government -wide Financial Statements The government -wide financial statements are designed to provide readers with a broad overview of the City of Kalispell's finances. The way information is presented in these statements is comparable to how the financial information of a private -sector business would be presented. 7 The statement of net assets presents information on all of the City of Kalispell's assets and liabilities. The difference between these two (assets minus liabilities) is reported as net assets. Net assets can be a useful tool in evaluating the financial health of an entity. A substantial decrease . in net assets may be a sign of deteriorating financial position. The change in net assets during the most recent fiscal period is presented by the statement of activities. The statement of activities reports changes in net assets at the time the event takes place without regard to the corresponding cash transaction. This results in some revenues and expenses being reported in this statement that will not result in cash flow until a future fiscal period. Some examples of this .would be uncollected but earned taxes and earned leave benefits. The government -wide financial statements of the City of Kalispell are segregated to distinguish between functions supported predominantly by taxes and intergovernmental revenues (governmental activities) and those that are intended to recover the majority of their costs through user fees and charges for services (business -type activities). The governmental activities of the City of Kalispell include general government/administration, public safety, public works, culture and recreation, and housing and community development. The business -type activities of the City of Kalispell include water distribution, sewer collection and treatment, solid waste collection, and ambulance service. The government -wide financial statements include, in addition to the primary government described in the above paragraph, a legally separate parking commission, a legally separate Tri - city planning office, and a legally separate Business Improvement District. The financial information of these component units is reported separately on the Governments -wide financial statements. Fund Financial Statements The City of Kalispell, like most other governmental entities, uses fund accounting. Funds are set up to account for specific activities or objectives of the government. Funds also aide in g compliance with legal requirements. The City of Kalispell categorizes its funds as either governmental, proprietary, or fiduciary. ➢ Governmental funds correspond with the functions reported as governmental activities in the government -wide financial statements. Governmental fund financial statements, by focusing on near-term inflows and outflows of spendable resources, may be more useful in evaluating a government's short-term fiscal health than the government -wide financial statements. A reconciliation has been prepared to help users more easily compare the governmental fund balance sheet to the government -wide statement of net assets and the governmental fund statement of revenues, expenditures, and changes in fund balance to the government -wide statement of activities. These reconciliations can be useful in contrasting, comparing and understanding the long-term impact (government -wide statements) of near-term decisions (governmental fund statements). The City of Kalispell maintains numerous individual governmental funds. The governmental fund balance sheet and statement of revenues, expenditures, and changes 0n fund balance present information separately only for funds which are considered major. Major funds are determined by a formula which considers the percentage of total governmental assets, liabilities, revenues, and expenditures contained in each individual fund. The City of Kalispell has three major governmental funds; the General Fund (always a major fund), the Community Development Loan Revolving (special revenue) Fund, and the Special Improvement District 343 (debt service) Fund. All non -major funds are presented as a group. The City of Kalispell adopts an annual appropriated budget for its funds. A budgetary comparison statement has been provided for the general fund and each of the major special revenue funds to demonstrate compliance with this budget. ➢ The City of Kalispell maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. water, sewers solid waste, and ambulance make up the City of Kalispell's enterprise funds. The City of Kalispell uses internal service funds to accumulate and allocate its data processing and health insurance transactions internally among its various functions. Under the old reporting model internal service funds were reported as proprietary funds because they recovered most of their cost through user fees from other funds. Under this new model these funds are eliminated through an allocation process and categorized as either a governmental or business -type activity. Because both of the City of Kalispell's internal service funds benefit governmental more so than business -type functions, they have been included within the governmental activities in the government -wide financial statements. Information in the proprietary fund financial statements is of the same type as that provided in the government -wide financial statements, however, it is more detailed. Individual fund data is provided for all of the enterprise funds. ➢ The City of Kalispell maintains two funds to account for resources held by the government for the benefit of outside parties. These fiduciary funds are not reflected in the government -wide financial statements because the resources are not available to support the City of Kalispell"s own programs. The City of Kalispell must ensure that the assets reported in these funds are used for their intended purpose. The accounting method used for fiduciary funds is similar to that used for proprietary funds. Notes to the Financial Statements The information contained in the government -wide and fund financial statements is meant to be used in concurrence with the notes to the financial statements. The notes present ffi rther detail of the data provided by these statements. 1 ANALYZING THE CITY AS A WHOLE As mentioned prior, net assets can be an important indicator of an entities financial well-being. For the period ending June 30, 2005, the City of Kalispell's assets exceeded liabilities by $69,562,822. CITY OF KALISPELL'S NET ASSETS Govemmental Business -type activities activities Total Investment in capital assets (e.g., land, buildings, machinery, and equipment), net of any related debt still outstanding on those assets makes up 61 % of the City of Kalispell's net assets. These. capital assets are used to provide services to the citizens of Kalispell and are not spendable. Therefore, repayment of the debt related to capital assets must be provided from other sources. Restricted net assets equal $8,323,514 or 12% of total net assets. $1,827,022 of this is restricted in the enterprise funds to remain in compliance with bond agreements. The $6,496,492 restricted in governmental activities consist of $410,333 for debt service, $2,759,758 for capital projects, and $3,326,401 for other purposes. The remaining balance of unrestricted net assets may be used to meet the City of Kalispell's ongoing obligations to citizens and creditors. At the end of fiscal year 2005, the City of Kalispell is able to report positive balances in all categories of net assets. Governmental activities. Governmental activities increased the City of Kalispell's net assets by $545,634 accounting for 7% of the City's growth in total net assets. Property taxes, which includes revenue from real property taxes, personal property taxes, and property assessments, increased $2,,666,043. This increase was due in large part to offsetting last year's substantial (approximately $3,000,000) adjustment to eliminate deferred revenue. Capital grants and contributions of governmental activities decreased $1,667,499, a result of donated improvements to the Kidsport complex decreasing over $1,O00,000. ID] 2044 2005 2004 2005 2004.. ...... ....... . .... . ....... .. . .......... . ....... ......2.. .005 Current and other assets $13,373,781 -� A4 $ ,13 X500 ��2 �4 �:" 28.151:01281 � � �a �ta1 assets net 2 2 930 206 _._... _- __ .___.__-:-:: _ _::_ . _ _ _ _ =-=::_:_.:::=_23 663 � � _ _ � _ _ .- -. _ 29 640 093 � _� __.______ _ _ _ _-- __.______ _ ._-:_:._ -_ _ _ ._ _ -- .r:-:: . � � .-. _ _ _5 � -- - - r=:=rf - _ 52 -- 530: 9 � v-.:::: Total assets 36,303,87 r _ 343 44,745593 =00 4= 6040,5 i ............. — Long-term liabilities outstand' 71043,849 = 2 _ 8,�t23 624 - 4 _ 5,°1 .6° 3 � �= Other liabilities 568 979 ............. _ 2 . 3 038,518 , ............................. ... -0 - }� zf= 4 49��. .._ - -- Total liabilities 8,612,028 264 _ 11.71 , _ .... = .X 2 4 .- . -- 19,7 4,170 Net a - --- _.----_..__...__._._...__.__._...-_....----...-.._...-__.._.. ..... -,;...__-_- , - - __:{{ F - .- T =_; _ - -------_-- - - - Invested in ca �tal assets, net .... _ _ _- --- __ _ - _ r=z=.=.—:__—._—: _:: ._: _= r_..__r-,.._........- _.—.._.—.___...__..._—..__._.- . __.:_:_—_:__....::__._::___.___.__=-=�r=..:=._=_r.:...:::.::::::: ._ _= _ =_= ..-1 =lam=r-f/.=� _ _'__,: irfl.- rr%%_-�- ___-=_:7�1..,s _ __ 11 1121 of related debt __ _ --17 437 9 7420,828,734 ....-- :_ __ 36 _ _. � _� _ ....:. ..� ......._......---.. __ _ - .:_: =: 4_ _ � ::.- _: -� _-_ ............ 36 2 708 - � 66 - Restricted ... ....... 8,179, 255: _ _ 1 , 9 4 1, 6` 7, 37 .,, .� .,.. ,r `:: 0� %796p� a Unrestricted ....... 2,074,727 ............ _ _ -31a _ 11 1371342 : 0 132 2:r9 - Total not arse is _ --_ ..._.. __ - -_ _ $ 27 691 959. 2- 17 3., - 4 1 33 5 ......... __ _:.-:- ::4 r - __ - : `l 35 5� :- - $61275 $..� Investment in capital assets (e.g., land, buildings, machinery, and equipment), net of any related debt still outstanding on those assets makes up 61 % of the City of Kalispell's net assets. These. capital assets are used to provide services to the citizens of Kalispell and are not spendable. Therefore, repayment of the debt related to capital assets must be provided from other sources. Restricted net assets equal $8,323,514 or 12% of total net assets. $1,827,022 of this is restricted in the enterprise funds to remain in compliance with bond agreements. The $6,496,492 restricted in governmental activities consist of $410,333 for debt service, $2,759,758 for capital projects, and $3,326,401 for other purposes. The remaining balance of unrestricted net assets may be used to meet the City of Kalispell's ongoing obligations to citizens and creditors. At the end of fiscal year 2005, the City of Kalispell is able to report positive balances in all categories of net assets. Governmental activities. Governmental activities increased the City of Kalispell's net assets by $545,634 accounting for 7% of the City's growth in total net assets. Property taxes, which includes revenue from real property taxes, personal property taxes, and property assessments, increased $2,,666,043. This increase was due in large part to offsetting last year's substantial (approximately $3,000,000) adjustment to eliminate deferred revenue. Capital grants and contributions of governmental activities decreased $1,667,499, a result of donated improvements to the Kidsport complex decreasing over $1,O00,000. ID] Busm*ess-type activities. Business -type activities increased the City of Kalispell's net assets by $7,772,505, accounting for 93% of the growth in the City's net assets. Charges for services revenue increased 19% or $1,469,008. The City's Water and Sewer funds charges for services showed a combined increase of $1,551,313. This significant increase in charges for services resulted from increased rates,, combined with an increase in customer base and consumption. Infrastructure contributions from developer's in the Water and Sewer funds were $3,671,918 or another 48% of the increase in net assets attributed to business -type activities. CITY OF KALISPELL'S CHANGE IN NET ASSETS Governmental Business -type Total activities activfties Emases: General government Public safety 2004 ................ . . . OMIIMM2004 ........................................... ..... _20D581MEM20N .... . . . ..... ....... . .......... ...... ....................... .... . . . . ... . ... .... . . .. .... .......... ............. ...... . . ........ ..... ... . . .. .. . . . . ...... Revenues: ... -------- -----------. ...... ......... 1 �M�7M . . .............. . . ....... .... . ....... . . . . . .................. . . . . .. .... ... . - 5w2-23,609 _R 92 .. ....... ...... .. . ........ _... � ....... ls613� 4 *2A 1,217�471 769.1607 .. . . . ...... ------------------ ----- - ......... . ........ ................ . ....... ...... . P ram re venues: -H ............. .... .... =- - m 11 M2, --2--o 1,613,134 IN . . . . ....... 1 t217 11 471 ............................ ... ... M . . . . . . . . . . - 769p607 R 334,315 ....... . . . . .. . ............ . ..... -- — ------------------------ ---- - - - - -------------- - ..... . ....... ..... . -- ---- . ......................................... ChaMes for services ............. ... . ... . ............. $ 4577,743 $ . .. . ............ . ........... . . . 7 ..... .70.7 7 F.469 ........ ....... . .. ......................... ..... --- ------- Rff� 12�355,212 "I'l. Operating grants and ... ..... .. ............ ......... ----------- ------ _2 IN mal - 37300% ---------- - . . ...... ...... . .................. . . ...... . . . ..... . ................. . ..... . .... - *-x, k-3 .im US, ------- ZM/-EM IM contribubons 1,046 ,260 IfIla-1- 55,86-7 Water .1 102 1 , 1 2..7.. .... ... . .. ... Capital grants and .. .. .. 1�645j714 -------------.... ..... ......................... . 1-645,714 .. . ..................... ..... .. ........ . . . . .... .... . ------- -------- -- .. ...... ... . ...... ......... . .... . ..... - - - --------- - --------------------------------------- ------- contributions 2,096t954 . - fi__ x 274 �0 1 '08 I ____1 an, I 1 POM General revenues: 517,419 . . .. ............... .. ........... . . . ........... . . ....... .. .. ....... - ------- ---- - . .. .... . ... . .... ... .. ........ . .... ..... . .. 517.1 1.9 . ......... . .. .. ......... ............ . . .. ... ... . . . . .. . . . ... .......................... - ----- - ---- - Pro _qqy taxes 2,086,752 ........ .. .... . . . . . ... . . ..... ......... .. . . ....... ..... ..... ... .... ... ............. 1,346T 286 ....... . _.. . . .......... ..... . ---------- .... 2-086,752 - - - - - - - - - - ....... .. . . ... Othertaxes . . . .. ............... _60 4811366.-. ............... . .. .. ....... ... . .. . . . .. . . .... .. . . .. . .... . ... ... ... ......... ... . ROME .. .. . ........ . . ............... . ... . 1 7�71 31335 ......... .... .... .. ------ .. . . ... . ............ - ------------ - .... . ...... . ....... ----- - --- --- *.P.Powww" --------- . . . . . . . . ........ Grants and contributions ... ........... 2,737,536 _g ---- ---- ....... --------- Restatements 20 15 not restdcted to specffic .. ............... ........ ... .. ................. ........ .... .. ... .. ... --------- ------- IN i ........... . . Increase in net assets 3,662,532 . . . .. . ...M ... . ..... .. .. ......... ..... 485 . ..... ..... . ... . . . ... A: P irams 2,075,409 . ....... .. 6 k28L- Net assets - beginnin g (as restated) 24,029,427 . ........ ....... ......... ... .... . .. ...................... .......... 1 2-2-7j:030 6MM Other 242w932 351MM 1110486 MM1.4%M . . . . . . . . . . . . . . . . . . . . . . ---- -3541418 - - -------- - - - - - - - - - - ------ Specia I Item 11322,194 . . . . . . .... ...... ........... ....... . .... . .. ... .... .. .. . .... .. 2 . . .. .... ......... ....... ..... . .... .. ...... ...... . .... .. ............ .... .. . .. . .. .............. . . . . . . .. .. ... .... .... ..................... .. ----- .......... .... ... .............. . ... ....... Total revenues 131,448,244 ................ . . .... . . ................. ........... . ....... . ..... . ..... .. . ...... ... ..... .. . . ............. ..... . - . . .... . .... ... ... _!F. -1-1-.4.3 331 BW ... ..: ........ V ...... ..... . .1 .0 9 218 9 2 1111 348M62111 1-1111.1-1-11,4- ......... ........ 22,66 �j 1 7 46 Pill Emases: General government Public safety 1,700,734 5 2 2 3 rM.... . . . .... .... ............. .. . ........... ..... . .. .......... .... . .. ........................... ............ ................. .. .... . .... ..... ..... ... . ... . . .. .. ........... ........ . . MERMEMEM .. ............................... ................................. .. .............................. . ........ ..... -- - ---- ------ M ------------- ------- -- --------------------------------- ---- ----------------- ... -------- -----------. ...... ......... 1 �M�7M . . .............. . . ....... .... . ....... . . . . . .................. . . . . .. .... ... . - 5w2-23,609 _R 92 .. ....... ...... .. . Public works .. ........ .. ...... Cufture and recreation Housing arwJ community deveippment ls613� 4 *2A 1,217�471 769.1607 . ....... .... .. .......... . .... ... ... . ..... ........... .... . . ............... . ... ..... . ......... ..... ....... .. . ..... - ........ . . - - -------- - ------ --------- - -- - - . . ...... ..... ...... .. . . .. .......... . . -.5-5M...-K .. ..... . . .. . ........ ------ ......... ... ... ............. ... ... ..... .... . .. . . .. .. ..................... ...... ...... .. 3 ...... . .... .......... .... . . .................... ........ . ........ ........... ........... . ... -H ............. .... .... =- - m 11 M2, --2--o 1,613,134 IN . . . . ....... 1 t217 11 471 ............................ ... ... M . . . . . . . . . . - 769p607 Miscellaneous 334,315 ...... . 334315 ..... . . ..... ............ . ... .. .. .. ... ..1 . ..... ------- Interest on Ion rm debt 373,099 ............... .................. ............................ ..... ... ..... .. ............ ......... . ..... . ...... . ................. . . ..... . . .... . ....... ............ ........... . - 37300% ---------- - . . ...... ...... . .................. . . ...... . Unallocated deereciation M ................... . ........................... ............ . . ......... -------------- - ----- --- Water ... .. .. ..... . . ...... .. ................ . ..... ..... . .. ..... .... ........... -- --- - ----------- ........ ..... ... .......... . ..... . .... . .. . ...... . . . ......... . .. . ....... . ..... . ..... ............. ................. ... . ........... . ........ .... ... . ......... . . . . . . . . . . . .. .. .. 1�645j714 -------------.... ..... ......................... . 1-645,714 .. . ..................... ..... .. ........ . . . . .... .... . ------- -------- -- Sewer .. ..... ..... . ...... . ... ...... ................... . . . . ............. .... .. . . ...... . ...... . .. . ........ .. . .. .. . ......... .... ........... F . . . ........ . ....... . . ........ . .......... . ... . . .. . ........... . ..... ....... . .... ............................. ............... . ... ...... ........... - - - - - - --- 2*971 *947 .................. figg-, 10-4: 5 971 7 . ..... - ...... ... . .. Solid waste ...... .. ....... . . . .......... . . ......... . ........................... ............. 517,419 544 RffljMl 1 517.1 1.9 Ambulance 1,346,286- 1,346T 286 Total ex penses 11,231,969 __,?? ---- -- .... ..... 1--i-11 _60 4811366.-. . ................ 4-.5 - ---- --- -- ---- --- .. .. . ........ . . ............... . ... . 1 7�71 31335 Inorease in net assets before transfers 2,216,275 .. . . . ..... ...... ... .... ....... ........ ....... ....................... __.= . . ..... . . .. . .... . .... .......... ... .. ... ........ . . . ... .. .. . . ...... . ........ ..... . . .... . . .................. ... ..... . . ... ........... 2,737,536 _g ---- ---- ....... --------- Restatements 1,-,W�257 ..... . . ......... . ...... ........... . . . ... . ....... . - ---- ----- - 1: . . ... ...... . .. . ..... (fit .... . ........ . — ::...:..:... . ... . ... . .. ............ .. ............... ........ ... .. ................. ........ .... .. ... .. ... --------- ------- IN i ........... . . Increase in net assets 3,662,532 . . . .. . ...M ... . ..... .. .. ......... ..... 485 . ..... ..... . ... . . . ... A: 2�73.,536 -7 ... .. .......... .. . . ... . ..... . ..... .. . ... .. .. .. ... ...... ... . .. . .... .. . . .... . . ...... .. . . . .. . . . ............ .............. .. ... . ... .. ....... . .......... ......... . . ........ ---------- 7802 0..... . . ... . . ....... .. 6 k28L- Net assets - beginnin g (as restated) 24,029,427 . ........ ....... ......... ... .... . .. ...................... .......... 1 2-2-7j:030 6MM 30,845-:915 .6.1 0 :!!�,MjW .. .............. 3 Net assets - end $ 27,691,959 MUMMS $ 33,583:F45 ........ .. 4. 5 TAB _.5M $ 61275,410 11 ANALYZING THE CITY'S INDIVIDUAL FUNDS Governmental Funds The focus of the City of Kalispell's governmental funds is to provide information on near --term inflows, outflows, and balances of spendable resources (fund balance). Unreserved fund balance is a useful tool when assessing the net resources a government has available to spend at the end of a fiscal period. At the end of fiscal year 2005, the City of Kalispell's governmental funds reported combined ending fund balances of $11,020,140, an increase of , $2,662,743 in comparison with the prior fiscal year. Of the ending fund balance, $450,333 is reserved for various purposes, and therefore, is not available for new spending. The general fund is the chief operating fund of the City of Kalispell. At the end of fiscal year 2005 unreserved fund balance of the general fund was $2,257,244. Unreserved fund balance as a percentage of total fund expenditures can be a good tool to use to measure the liquidity of the general fund. For fiscal year 2005, unreserved fund balance represented 28% of total general fund expenditures. The 72% increase in the fund balance of the general fund during fiscal year 2005 was mainly due to closing the health, retirement, and comprehensive insurance special revenue funds into the general fund. The Community Development Loan Revolving fund is a special revenue fund used to make low interest housing and commercial loans within a designated area. Principal and interest from these loans or the purchase and subsequent resale of a fixed asset are the only sources of revenue in this fund. During fiscal year 2005 the fund balance decreased $167,374 from $723,224 to $555,850. One hundred thousand dollars of this decrease was a program match transfer to the new Rural Development Loan Revolving fund. Special Improvement District 343 (debt service) fund was established by the City of Kalispell in fiscal year 2001 for the purpose of servicing the debt attributable to the reconstruction of Sunnyview Drive. This project was funded through the sale of bonds and a small contribution from the City of Kalispell, The fund balance decreased to $54,897 from $99,968 during the fiscal year 2005 operating period. This decrease was the result of debt service expense exceeding the tax proceeds used to pay the debt service. 12 f:*anars aM t'ropa+ei ft omm s - ae-r A l No far *KW ]sr 2= W00000 WD= 40DOODD 3DDD °° w 2saOM IO DOW 0 pn WA Pub SEW pub %roma aalw►a+ti w oonfm dw win "M am faQanMra wd t MOM" RVMUW - 00"MMMMM ACM IM far Mcat VW 2DD4 13 Raww�w� iry sar+pa -�Mrt AosMMrrs flosril rwr 1!ffs6 Dow Gmft snd aunt tint3% MOL "% 3" M" fw aarrkass ones and dant 12% crop o m -ta ana oont Rsftw by swiss* - GOWWWWOM AOOMN* ft.ar year OM 0ow+r 12% Gfw aril Cort nn NOL 16% G' wadi and Dont cop waft and cant 10% Proprietary .Funds The City of .alispell's proprietary funds financial statements provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net assets of all proprietary funds at the end of the fiscal year amounted to $12,844ffl& Of this amount, $3,114,966 was attributable to the water fund and $9,023,089 to the sewer. The total growth in net assets of all proprietary funds equaled $7,772,505. The water funds increase in net assets for fiscal year 2005 was $2,960,750, however, only $155,123 of this was attributable to operations (operating income). The sewer funds net assets increased $41,566,465, with $166,990 of the total from operations. Hookup fees, a non-operating revenue of the water and Sewer funds accounted for 33% or $2,519,512 of the proprietary fund increase in net assets. Other factors concerning the finances of the water and sewer finds have already been addressed in the discussion of the City of Kalispell's business -type activities. 6000000 1500000 4000400 3800000 3000000 25400U0 r+ 71000OOQ 1640000 10000Qa a EVwmew MW PmWsm R.4.mm - ►kel $ft A* ft P, "W "M rt�r �wr�r void VI"b - ... PI, Ai�WI� Exvwww and P r*Ww;F Rr4WW t -!luau ACVAI" tar %" y*W Z04 wow aa8d rrr.r a�6ufwrraa 14 AhWVA s by sago. - &MOMM4we Ao1 %ft" for sow yaw allot lrrrarlee��i E "*hps captW 3414 OPUMO r0 1�1L Chw9n Ax aoria*r 44% ftwwm by $ r m • &Wnw"" Ares Ow 660M VW 2004 hV*WFAni EWPMP 1% sap" iHL !7L C,'Frrryw for t�r'ri�*R GENERAL FUND BUDGETARY HIGHLIGHTS Over the course of the year, the City of Kalispell's general fund budget was revised. The original general fund expenditure budget was increased a total of $48,000 to the final amended budget figure of $8,538,108. This increase was an operating transfer made to fund 2215 (Aquatics Facility) to cover expenses. Since actual expenditures during the year were $266,852 below the original budget amounts, this amended amount did not draw from the existing fund balance. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital. Assets At the end of 2005, the City of Kalispell has $59,172,992 invested in a broad range of capital assets, including police and fire equipment, buildings, land, park facilities, garbage collection equipment, and water and sewer lines. The City of Kalispell has not yet booked some infrastructure; therefore, ,the dollar amount related to these assets is not included in the total. These assets, which include streets, will represent a significant increase in the capital assets of the City of Kalispell when booked. Major capital asset events during the fiscal year 2005 included the following: ➢ City Airport improvements land purchase at 2500 Airport Road, for $576,402. $224,000 was spent on Airport land improvements, including underground utilities, and fencing. A $279,900 fire truck was purchased. A $169,306 street sweeper was purchased and paid for predominantly (86.58%) with MAOI grant money. > Parks department replaced equipment valued at $61,524. ➢ Public works purchased 2 new full-size utility vans to be shared by streets, water, sewer, storm and solid waste. ➢ Two police vehicles were added at a total cost of $31,293. ➢ City installed (1) and replaced (22) fire hydrants valued at $60,324. Developer's installed 73 new fire hydrants valued at $157,680. ➢ 18,377 linear feet of new water main was put in service south on U.S. Highway 93 at a cost to the City of $1,094,906. Another $37,640 of the cost of this main was MDDT contributed. > 6,289 linear feet of new storm water main was put in service south on U.S. Highway 93 along with a new storm water pump station (#26). MDOT contributed $1,146,860 to this project with a total cost of $1,627,144. ➢ 11,847 linear feet of new sanitary sewer main was put in service south on U.S. Highway 93 along with a new sanitary sewer pump station (#22). Total cost of this project was $1,464,139. ➢ 31,208 linear feet of mains valued at $1,426,267 were contributed to the City by developer's. ➢ The water department continued a radio read meter project (phase III). The goal is to replace all the non radio read meters by 2005. These new radio read meters are more accurate and only have to be driven by for their consumption reading to be taken. Total cost of this project for fiscal year 2005 was $219,472. The City also installed new meters valued at $321!,120 that were not part of the radio read project. Upgrades to the City's water supply system were booked at $346,497. W );> The City finished replacement of the Liberty Street lift station (#4) at a cost of $129,658. ➢ Sanitary sewer mains and lift stations contributed by developer's totaled $1,800,342, ➢ Storm water collection mains and pump stations contributed by developer's totaled $254,257. > Equipment was replaced at the Waste Water Treatment Plant equaling $339,009. CITY OF KALISPELL'S CAPITAL ASSETS, (NET OF DEPRECIATION) Governmental Business -type Total activities activities .............. ,__ ....._ � � . ..... 044 -- - _ -_-. _ _ : . 193 5 7.8.3 ...................._. X04 202 43 Y ....:...... ::::::::_:_�� ::- .....:....::.::. , - - - - - -_ - --- 455 954 ............ .......�........ Burldrn s Improvements$ not buildings Machine and ebur ment 8$126,748 $.:...._ 10 S49 457 't,73,926 - --- -- ...........:.:. . _ _.._.___-__ _ 883 i :- - - ..... ..: $ ._.._..... _ . _. __..__._... ._ ...._._ - - ...... ==-_-:_: _�14 88- :. - _ _ --- = �� ..., _- X93 91 _::=::x:.:.._._ :_ 10 �.::, .._ : - .,... _ ..8,330,665v ._ _ ___ - - ........... �::::..,..:_ f __ _ . _ - ..:,..:::.___ .-_---- --..�.,.__.._,_ 679,424 rr=--=. 7��'= $ --- t 10 �9 5 . ----- _ -___- $ - - $41;350= - Construct o r ess � 55� $ , __------=_r-_-: __ _._..._._ .._ - ................................ -- _-_ _-- _ - 0 ::_.:_::_ r:__:__ -449,482-- r,.==-__ -- - - - _. f u l Source a S Pum lr� Plant ... ...........................:....:::.:.. .......... _. -:.__ 345 -_ _ _:=::: ............... . . . ..................... . ..:.::.:.... . y. =_==_=__===-_=_=_____=______--__==_= __ __ ___ _ _______ _ :__ __:_ __:_:_._:::_ __ .... 440.1 1 11 - 1 0 54 :------i. -- - -- 4- � - , .:... .: .... __ =-_=- = _ i =r= .._.:.:___ � .::: - 1 - - - ----_- 1 1 r 0 1541 - - - - - Treatment Plant -_ . r---= _==-=_=_== _ = _ _= _ .2 _ . = = = = 5A304;44 ,...,. :. ,. ,= f 4, $4$ 5,304,44 = � --- - r rr r n Transrxrrssron and D st but o _______:_-_- . =---._:.-:___=__-__=.---- 5 5 45 ,.... .. . _r.-.-.-::-.:... . . _ 55:11:405 -- - $A .. . n ra l Plant Gee_ $ 1 1 1 _ _ _ _ _ _ - - __... - ._. ___ _ =_- __== __ _ _ =- _ __ . __. :-...-...:_..._:_...... ......... 445 ..::..:.:..: ...........::.::.::. ==:::::..__-,,- =::r .................................::::::: -- ---- - - 4 442 - - - rT $ - _ =_ _r 5 ====_ = _=_=_ = Storm w s to m ..............................._._.___.._-..---_................_...................................._...._............_..._._.._._..._.. Total To...... $22,930,205 . ............... . - _ _ _ 3 7 ...... g .. -:-- __ r.= 4 9 $ 9509 093 5 : ,. 3 7 435 --_ 9 $ 5 5E39 X98 , Debt At the end of fiscal year 2005, the City of Kalispell had total long-term debt outstanding of $171533,108. Of this amount, $6,345,000 comprises debt backed by the full. faith. and credit of the government and $5,638,115 represents bonds secured solely by specified revenue sources (i.e., revenue bonds). The remainder consists of $1,83 l ,000 outstanding .on a SRF loan for construction of the wastewater treatment plant, another SRF loan for $1,422,860 which financed the extension of sewer lines south on Highway 93, $1,256,499 of special assessment debt for which the City of Kalispell is liable in the event of default by the property owners subject to the assessment, and $687,913 of loans for the purchase of equipment. The City of Kalispell also has debt outstanding on the books of $224,810 for the financing of the Courtyard Apartments, and a USDA — Intermediary Relending Program loan for $90,000. The Courtyard debt is paid for by the rent proceeds attributed to those apartments. CITY OF KALISPELL'S OUTSTANDING DEBT 16 Govemmental Business -type Total activities activities ............................................ ................ .......2004 ..............- ___-_.__-____ ,i_..,...., X444 ..::=.:-:,,:.= :--: 0 - .v. _ _ __ General ob l r atr o n bonds 3 475 000 $ , - ... ...........................:....:::.:.. .......... _. -:.__ 345 -_ _ _:=::: ............... . . . . :.-. sr_=-----„__ =_=_ - _--__ ___=_ = =_= ., :;:-r=:= 47 0 oo - ,... === ==== _ -_ _ - --- n Renewalbo ds RevenuelUrban$ 4 08 379 -_ . r---= _==-=_=_== _ = _ _= _ .2 -_ _--._-_-_ =-_ -_ -_ _ 5 __ 5 53 01 ..-==____- _ ___ , _ - .................. $ 5 951 391 ,. ___ __ . _ ._ ....,.. _-_ _ _ _ - _ =__ _- _ -= r::::._= SRF loans �___.-:..,-_....,-.:-:--.-.:-.:_-._-:.._-.:-.:::::-..:-=-__-==:- .... ...... ......:.:::. 1 74 ._ 3 3 3:� - � : ,€ 3 ° 74 , � r3 � - -- -- _ :_:_- .-_ = - _:-..:-.:��'� _ --__ Assessments $ 1 1 1 ....: _ ::: - - - �F - .. . � ... -. _ -- _ _- -_ _ _-_ _ ...::_:.:___._ ............ =--_,-----�:::-::-..::.::..::..:.:::::. :::..... `l �1 91 $ � - _ - r _- - _ _..._ - _ _ - �. --- ... .._....-.... Contract debt/loans $ 575,319 == 1 o � 4 5 = .�-- �3: �� 7231918 � � �_ --_____ Total 1 $ 5 900 6 0 . _... == = - - -__ 9�-:_ _; 9 - :- � � : .- ..... .. - 0 3 - 9 = `- -: _ _ $ � � � .....-- __= _ _ _ _ _= 4 - -- - - - ___ =_ $ 80 99 � � 16 Other obligations of the City of Kalispell include accrued vacation pay and sick leave (compensated absences). More detailed information about the City's long-term liabilities is presented in the notes to the financial statements. ECONOMIC FACTORS ANIS NEXT YEAR'S BUDGETS AND RATES ➢ Flathead County's unemployment rate (unadjusted) stood at 4.4% as of June of 2005, which is an improvement from the June 2004 rate of 4.7 percent. This is the same as the State's unemployment rate of 4.4 percent, but compares favorably to the nations rate of 5.2 percent. Flathead County and Northwest Montana have been experiencing rapid population growth for many years. The City of K.alispell's population grew 19.4% between the 1990 and 2000 census, and is estimated to have grown 8.7% from 2000-2002. Flathead County's population growth is projected to be 1.5% to 2% per year for the next 10 years. ➢ The City also continues to grow through the annexation of adjacent area. This puts more strain on all City departments, from Fire and Police to Solid waste, water and Sewer. > Energy costs continue to rise. The City's electric and natural gas bills increased approximately 14% and 73%, respectively, from fiscal year 2003 to fiscal year 2005. > Cost of health, liability, and property insurance continue to rise. All of these factors were considered in preparing the City of Kali' spell's budget for the 2006 fiscal year. During fiscal year 2005, unreserved fund balance in the General Fund increased to $2,257,244. The City of Kalispell has appropriated $501,538 o f this amount for spending. in the 2006 fiscal year budget. It is intended that this use of available fund balance will avoid the need to raise taxes or charges during the 2006 fiscal year. ]Vater and sewer rates were increased 8% and 5%1, respectively, for the 2006 budget year. These rate increases were recommended by the recently completed rate study conducted by an outside firm and adopted by the City Council. The rates were deemed necessary for the City to finance many current and future water and sewer infrastructure and capacity replacement needs as identified by the recently completed facility plan. Request for Information This financial report is designed to provide a general overview of the City of Kalispell's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Kalispell, Finance Director, P.O. Box 1997, Kalispell, MT 59903-1997. 17 Denning, Downey & Associates, F.C. CERTIFIED PUBLIC ACCOUNTANTS 1740 � .S. Rw South - Suite 1(11 Kalispell, AI1 ' 5 901 INDEPENDENT AUDITOR" S REPORT Mayor and City Council City of Kalispell Flathead County Kalispell, Montana We have audited the accompanying financial statements of the governmental activities, the business --type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Kalispell, Flathead County, Montana, as of and for the year ended June 30, Zoos, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of 10 City of Kalispell management. our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing S"mdardy, issued by the Comptroller general of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also ::includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. we believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Kalispell, Flathead County, Montana, as of June 30, Zoos, and the respective changes in financial positron and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Skutdarc&, we have also issued our report dated January 26, Zoof , on our consideration of the City of Kalispell " s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations} contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in conjunction with this report in considering the results of our audit. Robert K: Denning, CPA - Kim Al. Downed, CPA 18 The management's discussion and analysis and budgetary comparison information on pages 7 through 17 and 61 through 62, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Cour audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual non -major fund financial statements, and statistical tables are presented for additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by J.S. Office of Management and Budget Circular A-133, Audi is o, f States, Conal Governments, and Non -Profit Organizations, and is also not a required part of the basic financial statements of City of Kalispell, Flathead County, Montana. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. January 26, 2006 19 BASIC FINANCIAL STATEMENTS ASSETS Cash and mvestmentg TaxeslAssesune nts receivable, net Accounts receivable, net Internal Balances Current portion interfimd mmvables Due from other governments Due fi m Board of Investowds Currant portion of loans receivable Inventories Prepaid expenses Due. from other Total Cement Assets Restricted cash Advaom receivable Long term portion of loans receivable Defen-ed assessment rw6vsbk Other Capital assets - DepreciaW Net Capital assets - Land Capital assets - in progress Total Nit Assets Taal Assets LIABILITIES Accounts payable Accrued payroll late rfi,md payable Cornpenaated &bsmm Lang -term Liabilities -Due within one year Long-term Capital LWWrtim-Due within one year Other current liabilities Total Current Liabilities laterfund payable Deferred revenue - Loans Receivabie Costed absences Long -Tenn Liabilities - Dene in more than one year Long -Team Capital Liabilities - Due in more thaw one gear Total Noncurrent Liabilities Total Liabilities NET ASSETS Invested in capital assets, net of related debt Reshicted for capital projects Restricted for debt service Restricted for other purposes Unrestricted Total Not Aswu Set wwwpwWkg Nares to dw FW*ncW Stakmend City of Kawpen Stxtnnent of Net Assets June 30, 2WS Prim til]VE'mment Governmental Besinm4ype Acdv tks Activities Total S 10,234,194 $ 12,440,100 $ 2.2,674,294 $ 559,103 68,172 627,275 - 614,107 614,107 30,000 - 30,000 1,020,234 124,756 1,144,990 29,468 63,573 93,041 29,308 - 29,308 - 178,125 178,125 90,693 2,795 93,488 5,719 - 5,719 $ 11,998,719 S 131491,628 $ 25,490,347 $ S 149,555 $ 1,827,022 S 1,976,577 S 10,000 - 10,000 2,065,412 - 2,065,412 1,293,571 - 1,293,571 30,857 30,857 S 20,798,777 34,644,896 S 55,493,673 2,783,407 262,432 3,045,839 301 UL45 331,936 633,481 $ 27,433,124 $ 37,116,286 $ 64,549,410 S $ 39,431,843 50}507,914 $ 90,039,757 $ 399,388 S 374,752 $ 774,150 $ 87,116 20,994 108,110 - 30,000 30,000 26,495 - 26,495 51,759 - 61,759 402,477 940,425 1,342,902 19,144 11,253 3U�97 S 996,3.79 S 17377,434 S 2,373,813 $ 10,000 10,000 $ 944,543 $ $ 940,543 $ 823,551 200,581 1,024,132 378,524 - 378,524 8,115,533 r. 7,534,390 - 15,749,923 $ 10,258,151 $ 7,844,971 S 18,143, i 22 _ S $ 11,254,530 S 9,2221405 S 20,476,935 S $ 15,365,719 $ 25,714,449 $ 42,080,168 $ 2,759,758 526,350 3,286,108 410,333 1,340,672 1,711,005 3,326,401 - 3,326,401 6,315,102 12,844,038 19,159,140 $ 28,177,313 S 41,385,549 $ 69,562,827 $ OW UnW FogSUgWLEMS!> PAntary GerrernmeW. cvunmxmw General Govextitneart Public Safety Public works Cuhm and R er"Oon Commwky DeMopmcot Debt Service Egmw - lntercst Total Goverrvrradal Activities Water Serer Ambulance Solid Waft Total stype activities Tool Prhmy (ioverrrrnent N S TriCity Plara„ng Downemm B.I.D. Parkbng Coerarrimim Total Component Unfits Set accompanying N06M to lire Financial SWMMM City of Kalispell StatembW of AedvMt n For the F€ ml Year Ended lam 30, 2005 Net (Expeasa) Reveanea anal CYaaM In Net Assets Prftm_m Rerdrses GoverarNerrt Canspo ", Hafts [nAMeet Op"Ovs Capkw 900110 s- ilpe"e Charges for Grants and Grants a" GoveraaKsW typo Tr"q Dowaterr Parm" $ 2,050,693 $ $ 419,416 51950 11,970 (1,613,459) S S (1,613,459) S 5,638,222 15,364 1,316,455 911,729 79,953 (3,545,449) (3,345,449) 1,789,009 101,852 1,400.939 300,957 146,585 (42,480) (42,480) 1,580.473 61981 590,636 .5,465 21,132 (970,221) (970,221) 1,09€,643 21,103 301,017 328,742 - (482,91!7) (482,967) 11517 896 - - (621) (621} 288,363 27,905 30,367 169,915 (60,076) {601076) $ 12,639,922 S 145500 ^ $ 4,057 264 S 1,593,210 $ 4299,,455 S (6,715,293) S - $ (6,715,293) $ S 1,574,314 $ 93,718 S 2,962,127 S - S 1,654,959 $ $ 2,949,054 S 2,949,054 $ 3,042,346 149,506 4,424,997 - 3,201,459 4,434,604 4,434,604 1,121,996 45,572 1,256,048 96.702 - 185,292 185,292 487,402 61,112 603,303 - - 54,791 54,791 S 6,213,948 $ 349,908 S 9,246,477 S� 91702 S 4,836,418 $ - $ 7,623,741 $ 7,623,741 S - $ 18,965,870 S 4952M $ 13,303,741 $1,679,912 $ 5,285,873 $ (6.715.293) $ 7,623,741 $ 908,446 $ - 413,920 5,000 278,002 (140,919) 27.110 (27,110) 115,118 3,400 _142,213 23,695 S 536,148 S 81400 S 420,215 $ - S S - $ - S - ST (140,918) (27.110),.. 1.. 23,695 (kmd Revermes Property taxes for goal purposes S 4.752,795 S $ 4,751,795 S 69,384 Grants and entitlements not mtrictcd to specific progrum 2,158,11 A 2,158,118 Ievestmesrt m.lfi 332,066 179,428 511,494 1,874 96 355 Miscellaneous (odrer revenue) 379 376 (boas) on the sale of Capital Asxb 18,570 (30,663) 0 M23)_ 39,913 Total general revenues, special item acrd trwafen S 7,261,927 S 148,765 S 7,410,692 S 41,789 48 0 0_ 355 Change in Net Assert $ 546,634 S 7,121M S 9,319,140 $ (99,129) 42,370 24,050 Net Assets - Beomleg 27,691,959 33,583,451 61.275,410 113,239 10,000 48,245 Restate xms (61,280) 29,552 (31,728) (14,110) Net Assets - Bq onrdf g - Restated S 27,630,679 S 33,613,003 $ 61,243,682 S 991129 10,000 48,245 Net Assets - Ending S 28,177,30 $ 41M5-" $ 69,562,822 $ 52,370 ASSETS Gash and investments Taxes/Assessments receivable, net Current portion interfund receivables Due from other governments Due from Board of Investments Current portion of loans receivable Prepaid expenses Due from other funds Due from other Total Current Assets Restricted cash Advances receivable Long term portion of loans receivable Deferred assessment receivable Total Noncurrent Assets Total Assets LIABILITIES Qa=t Liabilities Accounts payable Accrued payroll Due to other finds Deferred revenue Other current liabilities Total Current Liabilities Noncument Liabiligo Deferred revenue - Loans Receivable Deferred revenue - Deferred Assessments Total Noncunvnt Liabilities Total Liabilities FUND BALANCES Reserved for advances Reserved for debt service Unreserved reported in general fund Unreserved reported in special revenue funds Unreserved reported in capital projects funds Total Fund Balance Total Liabilities and Fund Balance See accompanying Notes to the Financial Statements City of Kalispell Balance Sheet Governmental Funds June 30, 2405 22 Other Total General Fund CD Loan SID 343 Governmental Governmental Revolving Funds Funds $ 1,630,293 S 555985O S 15,181 $ 7,950,983 $ 10,152,307 341,142 - - 217,961 559,103 30,000 - - - 30,OOO 535,965 - 69,716 414,553 11020,234 29,468 - - - 29,468 11,236 10,563 - 17,509 29,308 879180 - - - 87,180 60,153 - - 633 60,786 11514 - - 4,205 ......52719 $ 27716,951 $ 566,413 r.r $ i-n-rn-ii-i 84897 rrrnin-- $ 8,645,844 $ _ 11,974,105 $ - $ - $ - $ 149,555 $ 149,555 101,000 - - - 10,000 34,857 1,710,129 - 355,283 21096,269 11181,572 111,999 1 93 571 402857 $ 117102129 $ 1,1811572 $ 616,837 S 3,549,395 S 2,7571808 $ 2,276,542 $ 12266,469 $ 9,222,681 r $ - i r 15,523,500 $ 771,855 S - S - $ 319,420 $ 397,275 711,567 - - 15,549 87,116 - - - 60,786 64,786 341,142 10,563 - 235,470 587,175 $ - $ - $ $ 12,025 $ 121025 $ _... 490,564 $ 10,563 $ - $ 643 250 $ 1, 1 44,3 77 - 1,710,129 - 355,283 2,065,412 - - - - 1,18.11572 1 i 1999 1 z293,571 $ - $ 1,7102129 $ 1181,572 $ 467,282 $ 3,358,983 $ . 490 564 $ 1 720 692 n2 rrr $ 1,181,572 $ i�rr_�i 1 l 10,532 $ 4 503 360 -i r ,...i�_i-iiiili�..ini- i ii i.ru..�rr.�0 rzi 10,000 - - - 10,000 - - 84,897 325,436 410$33 21257,244. - - - 2,257,244 - 555,850 - 5,026,955 51,5820805 - - -21759,758 759 758 �i= 2,759,758 $ 2 67 44 $ 555,850 $ 842897 $ iurrrrirrrrr 8112,149 $ .. 11,020,140 $ 21757,808 S 21,276,542 $ 112669469 $ %222,681 681 $ - - 15,523,540 22 City of Kalispell Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets June 30, 2005 Total fund balances - governmental funds 11,020,140 Capital assets used in governmental activities are 231871,965 not financial resources and therefore are not reported as assets in governmental funds Property taxes receivable will be collected this year, 19880,746 but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds. Loans receivable that will be collected at some future date that 19124,869 are recognized as revenues on the statement of activities. Internal service fund are used by management 87,932 to: I )account for the costs of providing employees medical insurance, and 2)account for data processing (computer supplies and services). The governmental portion of the internal service funds are included with governmental activities Long-term liabilities are not due and payable in (9,808,339) the current period and therefore are not reported as liabilities in the funds Total net assets - governmental activities $ 2$,177,313 Sm accon"nying Nota to tea Financial SWe mwts 23 REVENUES Taxes and Assessments Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Investment Earnings Total revenues EXPENDITURES Current.- General urrent: City of Kalispell Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended June 30, 2005 General CD Loan Revolving SID 343 Other Total Governmental Governmental Funds Funds S 31495,530 $ - $ 146232 $ 1288,218 4,929,980 1169257 - - 3469895 4631,152 298827364 4242 - 11,0351,446 39,9229052 841,492 143,135 - 1,914,491 2,8 98,718 535,875 - - - 535,875 111,485 - - 20,842 1329327 252293 8,995 - 691,458 330,746 $ 8,235 296 $ 156,372 $ 146,232 $ 416749,950 S 131212,850 General Government 1,524,123 - - - 15,524,123 Public Safety 59078,904 - - 525265 53,6041,169 Public Works 4239469 - - 11,368,444 11,7919,913 Parks and Rec 8911,469 - 345,503 1,236,972 Community Development - 2171,930 - 8911,612 13,1099,542 Miscellaneous 1,517 - - - 19,517 Debt Service: Debt Service Expense - Principal 369393 51,816 1001,000 2691,610 4111,819 Debt Service Expense - Interest 51,565 - 615,303 .22 1,495 2889363 Capital outlay 137;836 - - 19913 354 21051:190 Total expenditures $ 8,0991,276 $ 2239746 $ 161,303 $ 5,535,283 S 14,019,608 Excess (deficiency) of revenues over expenditures $ 136,020 $ (671374}r rrr.w�..1 $ (15,071 ) $ 860,333 $ 8069758 OTHER FINANCING SOURCES (USES) Transfers In S 866,922 S - $ - $ 7771,817 S 1,644,739 Transfers (Out) . (123,980) (100,000) T (19,4205,759) (11,6441,739) Proceeds LTD 679908 1 - - 3,4411593 3,4691,501 Total other financing sources (uses) $ 8101,850 S (100,000) $ - $ 217589,651 $ 31469,501 Net Change in Fund Balance $ 9465,870 $ (1 67,374) $ 15 071 S 1 z.898,318 S 2 662 743 Fund Balance - Beginning $ 12241,330 $ 723224 $ 999968 $ 61,3099,875 $ 89357,397 Restatements 96 044 - - 96 044 - Fund Balance - Beginning Restated $ 19,3241,374 $ 723224 $ 993,968,,. r6,213�,83r 1_ S 8,357,397 Fund Balance - Ending S 21,267244 S 555,850 $ 84,897 $ 81112,149 $ 119020,140 See accompanying Notes to the Financial Statements 24 City of Kalispell Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended June 30, 2005 Amounts reported forgovernrnental aativties in the statement of activities are different because: Net change in fund balances - total governmental funds Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. In the statement of activities, only the gain on the sale of the fixed assets is reported, whereas in the governmental funds, the proceeds from the sale increase financial resources. Thus the change in net assets differs from the change in fund balance by cost of the assets sold. Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Long-term debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of long --term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue (expense) of the internal service funds is reported with the governmental activities. Change in net assets - statement of activities Sar Notes to Financial Staten=ts 25 $ 2,6621743 2,1351,194 (11,072,614) 18?570 51,738 (110,150) (3,4697501) 411,819 2,839 546,634 City of Kalispell Statement of Net Asses Proprietary Feuds Ame 30, 2045 Sec accompanying Notes to the Financial Statements 26 Busluess-Type Activities - Governmental Enterprise Funds Activities Other Business -Type Internal Service Water Sever Ambulance Activities Totals Fends ASSETS Current A= Cash and invesanents $ 2,871,608 $ 9,134,163 $ 175,196 $ 259,133 $ 12,440,100 $ 811,887 Taxes/Assessments receivable, net - 27,241 - 40,931 68,172 - Accounts rrceivabic, net 119,453 184,459 310,195 - 614,107 - Due fuvm other govt - 60,013 - 64,743 124,756 - Due frorn Board of Invests 63,573 - - - 63,573 - Inventories 1781125 - - - 178,125 - Prepaid expenses 2,795 - - - 2,795 3,513 Total Current Assets $ _ _ -_3,235,554_ $ 9,405,876 $ 485091 $ 364,807 $ 13,491,628 S 85,400 NgMU= Assets Restricted cash $ 422,882 $ 1,364,045 $ - $ 40,095 $ 1,827,022 $ - Capital arises - Land 14,369 248,063 - - 262,432 - Capital assets - Construction in progress 140 331,796 - - 331,936 - Capital assets - Depreciable 18,934,053 36,429,612 411,006 1,250,501 57,025,172 108,369 Less Accumulated Depreciation J5:152,018} {X6,259,734) X337,022} X581,502} [22,330,276} X96 605) --Il lllll 111 lilll �_i - Total Noncurrent Assets S _ 14,2119,426 $ 22,113,782 $ 73,984 S 7092094 $ 37,116,286 $ 11,764 Total Assets $ 17 454 980 S 311519,658 _- $ 559 75 S , 1 901 0733 _ a � $ -5-0607,914 S -- 97,164 LIABILM S CM= Liabilities Accounts payable $ 66,411 $ 295,893 $ 6,041 S 6,417 S 374,762 S 2,113 Accrued payroll 3,700 6,096 9,118 2,080 20,994 - Advances payable - - 30,000 - 30,000 - Capital Liabilities 359,838 594,908 - 26,544 981,290 - CKher current liabilities 1,9869,267 _ - 11 i 11,253 7,119 Total Current Liabilities $ 431,935 $ 906,164 S 45,159 S 35,041 $ 1,418.299 $ 9,232 Advances payable S - $ - $ 10,000 $ - $ 10,000 $ - Compensated absences 48,491 71,531 36,491 44,068 200,581 - Capital Liabilities 3,500946 _ 4,066,034 - 26,545 -7,593,525 Total Noncurrent Liabilities $ 3,549,437 $ .----41137,565 $ 46,491 S 70,613 S 7,804,106 S - Total Liabilities $ , , 3,981,372 $ _ _ 5,043,729_- $ _ -- - _ 91,650 $ 105,654 S 9 22 405 $ 9,232 NET ASSETS - - - - - invested in capital assets, net of related debt $ 9,935,760 $ 16,088,795 $ 73,984 $ 615,910 $ 26,714,449 S 11,764 Restricted Net Assets 422,882 1,364,045 - 40,095 1,827,022 - Unrestricted 3,114,966 9,023,089 393,741 - - 312,242 12,W,038 ---- 76,168 Total Net Assets S 13,473,608 $ 261P475,92.9 $ 4676725 S 968247 $ _ 41,3859509 S 87,932 Sec accompanying Notes to the Financial Statements 26 See accompanying Notes to the Financial Statements 27 City of Kalispell Statement of Revenues, Expenses, and Changes in Net Assets Proprietary Funds For the Fiscal Year Ended June 30, 2005 Business -Type Activities - Governmental Ente rise Funds Activities Other Business -Type Internal Service Water Sewer Ambulance Activities Totals Funds Operating Revenues: Charges for services $ 1,589,109 $ 2,785,494 $ 1,255,848 $ 603,305 $ 6,233,316 S - Miscellaneous 99,988 961 - 100,949 378 Internal Services - - - - - 86,594 Special Assessments - 392,160 - _ 392,160 - Intergovernmental - - 961942 - 96,942 47,000 Total Operating Revenues $ ....... 12689,097,.. $ 3,1781215 $_,1,352,75.4 $ -- 6.0.31305 $ �, 6,823,367 $ _ 133,972 Operating Expenses Personal Services $ 589,570 $ 806,974 $ 470,010 $ 340,011 $ 2,206,565 $ - Supplies 35,749 699383 22,645 36,458 164,235 44,014 Purchased Services 302,122 691,780 66,485 19,007 110799394 22,997 Fixed Charges 115,014 200,205 64,174 73,037 452,4313 24,449 Building Materials 45,153 13,621 - - 58,774 - Loss/Bad debt expense 2,809 3,912 500,400 - 506,721 - Depreciation 443557 _ 13225P349... 42,794 � 7$1211 1,789,911 - 40,993 Total Expenses $ 1,533 974 $ 3,011,224. $ 1,16§1108 $ w„ 546,7 4 $ 6,258,030 $ - 1 Operating Income (loss) $ 155123 $ 166,991 $ 186,642 $ _581 $ 565,337 $ .115.19 _ Non-operating revenues (expenses) Capital Contributions Revenue 19654,959 3,241,459 - 40856,418 - Interest Revenue 32,909 141,312 916 4,291 179,428 1,324 Hookups 1,273,030 1,246,782 - - 2,519,812 - Debt Service interest expense (134,058) (180,628) (11350) (1,790) (317,826) - (Loss) on the sale of Capital Assets (211213 „ � 1 9 450 - Total Nan -operating revenues (expenses) $ 2,8051627 $ 4,399475 $ 434 $ 2,501 $ 7 ,207 169 1 32 S , 0 Change in net assets $ 2,960,750.$ 4 566 466 $ 186 08 $ �9 X82 . $ $ Zt839 Net Assets - Beginning of the year S 10,512,858. $ 21,921,113 $ 281,517 $ 9x19,165 $ 33,624,653 $ 105,171 Restatements - 1,650) - - (11,650) {201078}. Net Assets - Beginning of the year - Restated $ 10,5122858 $ _ 21,909463 .. $ 281,517 $ , 909,165 $ 33,613,003 S 85,093 . Net Assets -End of the year $ 13,47308 $ 26,475,929 $ 467,725 $ 968,247 S 4wmw�1,355,509 $ 87,932 See accompanying Notes to the Financial Statements 27 CITY OF KALISPELL STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended Jure 30, 2905 28 OTHER 1xTTXxAt, WATER SEWER AMBULANCE BUSINESS -TYPE SERVICE FUND FUND FUND ACTIVITIES TOTALS FUNDS Cash flares from Operating Acitlrka: Cash Received From Customers $1497,390 52,7729794 $192371,151 S 5,647,335 S 1339972 Cash Received From Asaessawats 371,695 S6B0,444 97291199 Cash Payments to Suppliers for Goods & Services (448,786) (10005,111) (653,423) (125,024) {2,232,344} (2319528) Cash Payments to Employees for Services (590,972) (810,395) (473,723) (338,744) (21213,795) Cash From Other Operating Revenues 999998 %1 961,941 197,894 Net Cash Provided (Used) by Operating Activities Cash Flows from Nonespital Financing Activitks: Principal paid on Loan from General Fund (5549004) S (54,000) Interest pail on Loan from General Fund S1 SD $(12M Net Cash Used by Nonespital Financing Activities_ Cash Flows From Capital and Related FhumciiaR Activities: Acquisition and Construction of Capital Assets ($1,827,821 (52,318,774) (515,765) (5162,292) S (4,3249652) S (5,478) � ProceedPrincipal 744,M) 11069,495 Pa Service(359,0104)1 ]2 ( 379 ,3 6) (2 5) (9K%5) Interest Paid on Debt Service (134,458) (18028) (1,790) (3169476). Cash Received From Hookups 1,.273,034 14469782 29519,812 Capital contributed by Tai Increment/Other Gov't $1,15148 1 131 748 Net Cash Used for Capital and Related Financing Activities 5 342 4 S (3*076) S 15 765 S 194 62 S (9659:9J8 5 (5 9478) Cash Flores From Investing Activities,: Interest on Investments S 32,909 5141 12 $916 T4 91 S 179 478 S 1 20 Net Cash Provided by Investing Activities 4,291 Net Increase (Decrease) in Cash and Cash Equivalents S 387,559 S 1,115,179 S 140,747 S (49") S 1,593,825 S (101,714) Cash and Cash Equivalents at July 1, 2004 2,906,931 9,3839029 34,448 348„888 12,57392% 183,641 Cash and Cash Equivalents at June 30, 2045 S 3 94 490 S 114981308 08 S 175 195 S 29928 S ]4 67121 S SIA87 Reconciliation of Operating Income to Net Cub Provided by Operating Activities: Operating Income S 155,123 S166,99i $ 186,642 SS6y581 S 565,337 S 11519 Adjustments to Reconcile Operating Income to Net Cath -Provided by Operating ActMtia: Depreciation 443,557 1,225,351 42,794 78,211 1,789,913 44,993 Bad Debt ExpewmqUm on Disposal 3,912 3,912 Change In Assets and Liabilities: Decrease (Increase) is Accounts Receivable 11,490 (12,300) (18,558) (19 ) (Increase) In Assessments Receivable (20,465) (2,981) (23,,366) Decrease In Inventory 33,574 33,574 Increase (Decrease) in Accounts Payable 15,678 (30,122) (119) (1,404) (15,967) (6,024) Increase (Decrease) in Compensated Absences (11402) (3,424) (3,713) 6,189 (2,350) Decrease is Estimated Liability for Claris 134 044 Net Cash Provided (Used) by Operating Activities Now: Water F**d am mh developers' combib elan were $1,617,319. Sewn Aster= devdoperx' oonu ONNY-020-M-0 were $2,1 KM. Dbelesare of Ateemotiq Polley: For purpoen of lie stoteiwent of cub now*, the F.wterprise Fr*ds emu r *a We* llgrtd hw*stme*ts (iwd*MnZ restricted egrets) wtth s mutwrity of three =moths. or has wbw pMrdwed to be cell eg* vAmits. Ser wcompmybg Notes to the FisasmM Stsfe*re*ts 28 City of Kalispell Fiduciary Funds Statement of Fiduciary Net Assets June 30, 2005 Agency Funds ASSETS Cash and short-term investments $ 4609402 Total assets $ 46v,4 LIABILITIES Bonds payable $ 241,924 Due to others 218 478 Total liabilities $ 4641,402 See accompanying Notes to the Financial Statements 29 NOTES TO THE FINANCIAL STATEMENTS CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City complies with generally accepted accounting principles (GAAP). GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements. In the government -wide financial statements and the fund financial statements for the proprietary funds, Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989, have been applied unless those pronouncements conflict with or contradict GASB pronouncements, in which case GASB prevails. For enterprise funds GASB statement Nos. 20 and 34 provide the City the option of electing to apply FASB pronouncements issued after November 30, 1989. The City has elected not to apply those pronouncements. Financial Reporting Entity In determining the financial reporting Entity, the city complies with the provisions for GASB statement No. 14, The Financial Reporting Entity, and includes all component units of which the City appointed a voting majority of the units' hoard; the City is either able to impose it's will on the unit or a financial benefit or burden relationship exists. Primary Government The City of Kalispell is a political subdivision of the State of Montana governed by an elected Mayor and Council duly elected by the registered voters of the City. The City utilizes the City Manager form of government. The City is considered a primary government because it is a general purpose local government. Further, it meets the following criteria; (a) It has a separately elected governing body (b) It is legally separate and (c) It is fiscally independent from the State and other local governments, The accompanying financial statements present the primary government and its component units, entities for which the government is considered to be financially accountable. These financial statements include all funds, agencies, boards, commissions and authorities which meet the criteria for inclusion in the City's financial report. These criteria include financial accountability, appointment of a majority of the secondary government and the financial benefit or burden derived by the primary government from a secondary government. Discretely Presented Component Units Discretely presented component units are separate legal entities that meet the component unit criteria described above but do not meet the criteria for blending. The Cities' three discretely presented component units, the Kalispell Parking Commission., Tri City Planning, and the Downtown Business Improvement District are legally separate organizations of the City, but the City is financially accountable. The component units are reported in a separate column to emphasize that they are legally separate from the City. Kali ll Parkin Commis i n The Kalispell City Council passed Resolution 4103, a Resolution of intention to create Special Parking District #2 on June 215 1993. Also passed was Resolution 4104, a resolution of intention to provide for funding the cost of maintaining, operating, repairing, and improving Special Parking Maintenance District #2 and Resolution 4105, a Resolution declaring the need for a Parking Commission to function in the City of Kalispell and declaring a jurisdictional area wherein said Parking Commission is authorized to function. The Mayor and City Council appointed the Board of Directors composed of City residents who operate businesses within the district. The Parking Commission opened their doors on February I st 1994. The City transferred $53,000 in Fiscal 1994 to the district as start up money, no further City funds have been given to the district. It is intended that the Parking Commission be operated as a Proprietary type fund and has been classified as such in the City's 30 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 financial statements. Tri its Pi g On July 1, 2001 the Tri City Planning Office was created by interlocal agreement between the cities of Kalispell, Whitefish, and Columbia Falls. The purpose of the Tri City Planning Office is to coordinate all land use planning review and approve subdivisions, and zoning and enforcement as they relate to the cities, namely to provide long range and current land use planning services. The Tri City Planning Board is made up of the City Managers, representing the Mayor and City Council, of the three cities. The City of Kalispell serves as the administrative agent at the pleasure of the Board. The employees are paid through the City of Kalispell payroll system and are included in its health program. Cost of operating the office is split between the cities, proportionate to their expected benefit. Some costs of operating are recovered through planning fees. The City of whitefish created their own planning department in fiscal year 2005. . This effectively dissolved the TriCity Planning Office and agreement. The City of Kalispell has created its own planning department to begin operating in fiscal year 2006. Downtown Busines Imp ovement District On May 17, 2004, by resolution 4891A, the City created the Downtown Business Improvement -District. The purpose of which appears to promote the health, safety, prosperity, security and general welfare of the inhabitants of the City of Kalispell and the proposed district, and appears to be of special benefit to the property within the District. The District boundaries are roughly 2'd Avenue East to 2' d Avenue West between Center Street and 4'h Street South. Publicly owned property and owner occupied single family dwellings are exempt from the assessments related to the District. Basis of Presentation, Measurement Focus, and Basis of Accounting Government -wide Financial Statements The government -wide financial statements (i.e., the Statement of Net Assets and the Statement of Activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. Eliminations have been made to minimize the double -counting of business -type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment The general government function of the City includes expenses which are, in essence, indirect expenses of other functions. These expenses are allocated to each related function. Program revenues include 13 charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2} grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or. segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 31 CITY OF KALISPELL NOTES To FINANCIAL STATEMENTS JUNE 30, 2005 Certain eliminations have been made as prescribed by GASB 34 in regards to inter -fund activities, payables and receivables. All internal balances in the Statement of Net Assets have been eliminated except those representing balances between the governmental activities and business -type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business -type activities have not been eliminated. Measurement Focus and Basis of Accounting On the government -wide Statement of Net Assets and the Statement of Activities, both governmental and business -type activities are presented using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred, regardless of the timing of the cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The City generally applies restricted resources to expenses incurred before using unrestricted resources when both restricted and unrestricted net assets are available. Fund Financial Statements Basis of Presentation Fund financial statements of the City are organized into funds. A fund is an independent fiscal and accounting entity with a self -balancing set of accounts. Fuad accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance -related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements. Funds are organized into three categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. Each major fund is displayed in a separate column in the governmental funds statements. All of the remaining funds are aggregated and reported in a single column as non -major funds. A fund is considered major if it .is the primary operating fund of the City or meets the following criteria: a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at .least 10 percent of the corresponding total for all funds of that category or type; and b. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or enterprise funds are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. .Measurement focus and Basis of Accounting Governmental funds are used to account for the City's general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual. (i.e., when they are "measurable and available") "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgements which are recognized when the obligations are expected to be liquidated with expendable available financial resources. 32 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Real and personal property taxes, special assessments, charges for current services, and interest earnings are susceptible to accrual. Other receipts and taxes become measurable and available when cash is received by the City and are recognized as revenue at that time. The City recorded real and personal property taxes and assessments levied for the current year as revenue. Taxes and assessments receivable remaining unpaid at year-end and not expected to be collected soon enough thereafter to be available to pay obligations of the current year were recorded as deferred revenue, with a corresponding reduction in revenues, as required by generally accepted accounting principles. In addition, prior period delinquent taxes and assessments collected in the current period were recorded as revenue in the current period as required by generally accepted accounting principles. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Major Funds The City reports the following major governmental funds: The General Fund is always a major fund. This is the City's primary operating fund and it accounts for all financial resources of the City except those required to be accounted for in other funds. The Community Development Loan Revolving Fund was established to account for the lending and repayment of monies loaned to businesses and individuals for projects approved by the City's Community Development department. SID 343 is a debt service fund established to account for the resources accumulated and payments made for principal and interest on the 20 year bonds sold to reconstruct Sunnyview Drive. Proprietary funds are accounted for using the accrual basis of accounting., These funds account for operations that are primarily financed by user charges. The flow of economic resources focus concerns determining costs as a means of maintaining the capital investment and management control. Revenues are recognized when earned and expenses are- recognized rsrecognized when incurred. Allocations of costs, such as depreciation, are recorded in proprietary fa ds. - Proprietary finds distinguish operating revenues and expenses from non-operating items. operating revenues and expenses generally result from providing services and producing and delivering goods in connections with a proprietary fund's principal ongoing operations. The principal operating revenues for enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. Major Funds The City reports the following major proprietary funds: The Wafer Fund accounts for the activities of the City's water distribution operations. The Sewer Fund accounts for the activities of the City's sewer collection and treatment operations and includes the storm sewer system. The Ambulance Fund accounts for the activities of the City's Ambulance service. Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of others. 33 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 The agency fund is custodial in nature and does not present results of operations or have a measurement focus. Agency funds are accounted for using the modified accrual basis of accounting. This fund is used to account for assets that the City holds for others in an agency capacity. As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements, and the internal service funds have been absorbed pro -ratably into governmental -type and business -type activities on the government - wide financial statements. Exceptions to this general rule are charges for services between various functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Budgets Budget Process An annual appropriated operating budget is adopted each fiscal year for the general fund, special revenue funds, debt service funds and capital projects funds on the modified accrual basis. In addition, a budget is adopted for the enterprise and internal service funds on a full accrual basis. The appropriated budget is prepared by fund, function, and for the general fund and certain other funds, by department. The final budget is legally enacted by the City Council, on the second Monday in August after holding public hearings as required by State statutes. Budget appropriation transfers may be made between general classifications of salaries and wages, maintenance and operation and capital outlay. Reported budget amounts represent the originally adopted budget as amended by resolution of the City Council. It is management's responsibility to see that the budget is followed to the budgetary line item. The City Council may amend a final budget when shortfalls in budgeted revenues require reductions in approved appropriations to avert deficit spending; when savings result from unanticipated adjustments in projected expenditures; when unanticipated state or federal monies are received; or when a public emergency occurs which could not have been foreseen at the time of adoption. The procedure to amend the budget in total can be made only after the City prepares a resolution., notice is published of a public hearing} and a public hearing is held in accordance with state law. All material budget amendments and transfers during FY 2005 are described below: Increased the appropriations in the CDBG Head Start special revenue fixed in the amount of $500,000 to accommodate the receipt of a grant for assisting Northwest Montana Head Start in constructing a neve facility. Increased the appropriations in the Tri -City Planning fund by $137,000 to allow for the distribution of assets to the three clues. Increased general fund appropriations by $48,00-0 to provide for a operating transfer- to the Aquatics Facility for covering its shortfall. 34 CITY OF K ALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 301, 2005 Assets, Liabilities, and Net Assets or Equity 1. Cash, Cash Equivalents, and Investments The City's cash and cash equivalents are considered to be cash on hand, demand and time deposits, bidders bonds, bonds and warrants, and investments with the State of Montana's short-term investment pool (STIP). The cash resources of the individual funds are combined to form a pool of cash and investments which is managed by the City Treasurer. Investments are carried at cost, which does approximate fair value as described in Note- III, A, except for investments in STIP and particular bonds, which are reported at fair value. For purposes of the statement of cash flows, the enterprise and internal services funds consider all funds (including restricted assets) held in the City's cash management pool to be cash equivalents. 2. Receivables and Payables Transactions between funds that are representative of lendinglborrowing arrangements outstanding at the end of the fiscal year are referred to as either interfund receivables/payables (i.e., the current portion of interfund loans) or advances to/from other funds (i.e.,the non-current portion of interfund loans). All other outstanding balances between funds are reported as due to/from other funds. Advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. Property tax levies are set on or before the second Monday in August, in connection with the budget process. Real property (and certain attached personal property) taxes are billed within ten days after the third Monday in October and are due in equal installments on November 30 and the following May 31. After those dates, they become delinquent, and a lien is filed upon the property. After three years, the City may exercise the lien and take title to the property. Special assessments are billed in two equal installments due November 341 and the following May 31. Personal property taxes (other than those billed with real estate) are generally billed no later than the second Monday in July (normally in May or June), based on the prior November's levies. Personal property taxes, other than mobile homes, are due thirty days after billing. Mobile home taxes are billed in two halves, the first due thirty days after billing; the second due September 30. The tax billings are considered past due after the respective due dates and are subject to penalty and interest charges. An allowance for uncollectible accounts was not maintained for real and personal property taxes and special assessments receivable. The direct write-off method is used for these accounts. A reserve for estimated uncollectible accounts receivable is maintained for the Water Fund, Sewer Fund and the Ambulance Fund. The reserve balances are as follows for June 30, 2005: Water $ 75,8434 Sewer $ 13,925 Ambulance $ 233,536 35 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 303, 2005 3. Inventories and Prepaid Items Inventories for materials and supplies for governmental fund types are expended at the time of purchase. Enterprise Fund inventory of materials and supplies are valued at cost and the Fust -In First -Out (FIFO) method is utilized. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. 4. restricted Assets Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. when an expense is incurred for which both restricted and unrestricted net assets are available, it is the City's policy to first apply the restricted resources. 5. Capital Assets Capital assets, which include property, plant, and equipment, are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the government as assets with annitial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. All of the City's public domain or infrastructure capital assets have not yet been recorded in. the City's financial statements. Public domain or infra -structure assets can include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems and similar assets that are immovable and of value only to thegovernmental entity. The City of Kalispell has until fiscal year 2007 to retroactively report infrastructure assets. The costs of normal maintenance and repairs that do not add to the value of.the assets or extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related assets. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of fixed assets is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Depreciation has been provided for the property, plant and equipment of the proprietary funds using the straight line method. The useful lives of these assets have been estimated as follows: Buildings 20-50 years Improvements Other than buildings 10-50years Machinery, vehicles and equipment 5-20 years Water and Sewer lines, pump stations 10-50 years 36 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 303 2005 6, Compensated Absences It is the City's policy and state law to permit employees to accumulate a limited amount of earned but unused vacation benefits, which will be paid to employees upon separation from City service. Employees are allowed to accumulate and harry over a maximum of two tunes their annual accumulation of vacation, but no more than 90 days into the new calendar year. There is no restriction on the amount of sick leave that may be accumulated. Upon separation, employees are paid 100 percent of accumulated vacation and 25 percent of accumulated sick leave. The liability associated with governmental fund - type employees is reported in Governmental Activities column of the Statement of Net Assets, while the liability associated with proprietary fund -type employees is recorded in the respective fund and the Business -type Activities column of the Statement of Net Assets. 7. Long -Term obligations In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. NOTE 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Excess of expenditures over appropriations For the year ended June 30, 2005, all City funds expenditures were less than or equal to budgeted appropriations. B. Deficit Fund Balances The following Funds had deficit fund balances at June 30, 2005: Debt Service Funds: 1996 Sidewalk & Curb $ 21 1997 Sidewalk & Curb $ 160 Capital Pro `ect Funds. S & C Construction $ 59715 The deficits in the debt service funds and the capital project fund were caused by a short -fall in anticipated revenue. The deficits in the Sidewalk and Curb funds will be eliminated as delinquent assessments are collected. The Sidewalk & Curb Construction fund deficit will be eliminated through the sale of bonds. 37 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 3. DETAILED NOTES ON ALL FUNDS ANIS ACCOUNT GROUPS A. Cash and Cash Equivalents Investment Income Income from pooled investments is allocated to the individual funds based on the fund's month end cash balance in relation to total pooled investments. Cash Composition Cash and investments may include cash and Gash items; demand, time, savings, and fiscal agent deposits; investments in the State Short -Term Investment Pool (STIP); repurchase agreements; U.S. government treasury bills, notes bonds, and other treasury obligations such as state and local government series; general obligations of certain agencies of the United States such. as Federal Home Loan Bank; and U.S. government security money market funds if the fund meets certain conditions. Total City's (primary governmental and component units) composition of cash, deposits and investments at fair value as of Jane 30, 2005, are as follows: Cash on hand $ 23,150 Cash in banks: Demand Deposits 1989655 Savings Deposits 36,409 Bidders Bonds 241,924 Bonds/Warrants 56,497 STIP 1897239415 Government Backed Securities 57403,583 U. S. Treasury Notes _ 1,000.254 Total Credit Risk Section 7-6.202, MCA, limits investments of public money of a local government in the following eligible securities: (a) United States government treasury bills, notes and bonds and in the United States treasury obligations, such as state and local government series (SLGLS), separate trading of registered interest and principal of securities (STRIPS), or similar United States treasury obligations; (b) United States treasury receipts in a form evidencing the holder's ownership of future interest or principal payments on specific United States treasury obligations that, in the absence of payment default by the United States,. are held in a special custody account by an independent trust company in a certificate or book entry form with the federal reserve bank of New York; or (c) Obligations of the following agencies of the United States, subject to the limitations in subsection 2 (not included): (i} federal home loan bank; (ii) federal national mortgage association; (iii) federal home mortgage corporation; and (iv) federal farm credit bank. 38 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 With the exception of the assets of a local government group self-insurance program, investments may not have a maturity date exceeding 5 years except when the investment is used in an escrow account to refund an outstanding bond issue in advance. Section 7-6-205 and Section 7-6-206, MCA, state that demand deposits may be placed only in banks and Public money not necessary for immediate use by a county, city, or town that is not invested as authorize in Section 7-6-202- may be placed in time or savings deposits with a bank, savings and loan association-, or credit union in the state or placed in repurchase agreements as authorized- in Section 7-6-213. The City of Kalispell has no investment policy that would further limit its investment choices. The City of Kalispell has the following investments and their related credit risk as reported by Standard and Poor's or Moody's investment service: Short Term Investment Pool (STIP) Credit Quality ratings by the NRSRO as of June 30, 2005: Security Investment Type Fair Fair Value Credit Quality Rating Commercial Paper $1,2491527,386 Al Corporate Fixed $ 49,8219250 A1+ Corporate Variable -Rate $ 4141,951,800 Al+. Municipal Variable -Rate $ 6,0001400 NR Repurchase Agreement $ ,22,000,000 A3 Total Investments $$ 1.742.300.436 A1+ Audited financial statements for the State of Montana's Board of Investments are available at 555 Fuller Avenue in Helena, Montana. Custodial Credit Risk Custodial Credit risk is the risk that, in the event of a bank failure, the government's deposits may not be returned to it. The City of Kalispell does not have a deposit policy for custodial credit risk. All deposits are carried at cost plus accrued interest. As of June 30, 2005, $25,373,304 of the City of Kalispell's bank balance of $25,673,875, was exposed to custodial credit risk as follows: D = s i t o r z A r, coon balanc, Insured $ 136,409 Collateralized -Collateral held by the pledging bank's trust department in the City's name $ . 509,643 443 -Collateral held by the pledging bank's trust department, but not in the City's name $24,7279252 Total Deposits and Investments $251373,304 39 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Doosit.Secrity_ Section 7-6-207, MCA, states ( 1 ) The local governing body may require security only for that portion of the deposits which is not guaranteed or insured according to law and, as to such unguaranteed or uninsured portion, to the extent of: (a) 50% of such deposits if the institution in which the deposit is made has a net worth of total assets ratio of 6% or more; or (b) 100%° if the institution in which the deposit is made has a net worth of total assets ratio of less than 6%. The amount of collateral held for the City of Kalispell deposits at June 30, 2005, equaled or exceeded the amount required by State statues. Concentration of Credit Risk The City of Kalispell places no limit on the amount the entity may invest in any one issuer. The City of Kalispell's concentration of credit risk percentages follow for each investment issued that is not issued or explicitly guaranteed by the U.S. government, invested in mutual funds, external investment pools or other pooled investments: Bidder Bonds Bonds/Warrants ° of credi ri 1% c1% Interest Rate Risk The City of Kalispell does not have a formal investment policy that limits investment maturities as a means of managing its. exposure to fair value losses arising from increasing interest rates. The following is a list of individual investments as of June 30, 2005 along with their related interest rates and maturity dates. Investment Interest Rate Maturity_Date AmOMI STIP NIA NIA $18,723,415 Savings Account NIA NIA $ 36,409 Federal Home Loan Bank 4.04% 10/27106 $ 1,630,000 U.S. Treasury Notes 4.0% 1218106 $ 1,000,254 Federal Home Loan Bank 3.0% 4121109 $ 9969250 Federal Home Loan Bank 2.5% 10/29/07 $ 987,190 Federal Home Loan Bank 3.0% 1217107 $ 997,500 Federal Home Loan Bank 4.0% 6129107 $ 11022,013 Bidder's Bonds NIA N/A $ 241,924 S&C Bonds NIA NIA $ 56,497 40 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 309 2005 B. Interfund Receivables and Payables The composition of interfund balances as of June 30, 2005, were as follows: Due to/from other funds: ReccivabLe Fun General -- Major Governmental General — - M aj or Governmental General -- Major Governmental SII] Revolving (1 ) SID Revolving (1) SID Revolving (1) SII] Revolving (1) Total (I)Non-major Governmental Funds Paya� ble Fund Am unt Pumose Ambulance — Mjr Bus -type $30,000 SlT Loan G.D. Bond, series 2402 (1) $13,684 SIT Loan Permissive Health (1) 46,469 SIT Loan 1996 S & C (1) 84 SIT Loan 1997 S & C (1) 210 SIT Loan 2042 S & C (1) 216 SIT Loan 2003 S & C (1) 13 SIT Loan Advances to/from other funds: Receivable Fuad Payable Fund Amount General Fund — Mjr Gov't'l Ambulance — Mjr Bus -type C. Operating Transfers The following is an analysis of operating transfers in and out during Fiscal Year 2005: From To Amount General Fund (2) COPS Grant (1) $ 15500 General Fund (2) Drug Enforcement (1) 209000 General Fund (2) Universal (1) 281314 General Fund (2) FEMA (1) 17706 General Fund (2) Aquatic Facility (1) 721462 WestTIF (debt serv.) (1) WestTIF (spec. rev.) (1) 500,000 Special Streets (1) MACI (1) 22,721 Parks in lieu (1) IST -EA (1) . 83258 CD Loan Rev. (2) Rural Dev. Loan Rev. (1) 100,000 Comp. Ins. (1) General Fund (2) 1621007. Retirement (1) General Fund (2) 131,285 Permissive Health (1) General Fund (2) 3429553 Health (1) General Fund (2) 2219077 Debt Revolving (1) General Fund (2) 109000 Debt Revolving (1) 94 S & C (1) 921 c 95 S & C (1) Debt Revolving (1) 11163 Pool Const. (1) G.O. Bond, series 2002 (1) 20,, Total (1) Non -major Governmental Fund (2) Major Governmental Fund 41 Pu o e LJT Loan P=ose Match Match Match Match Operating Operating Match Match Match Close fund Close fund Operating Close fund Excess Operating Operating Close fund CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS TUNE 30, 2005 D. Capital Assets Capital asset activity for the year ended June 30, 2005 was as follows: City capital assets, net Balance Balance Balance overnmental Activities: July 1 20 4 Additions Deductions Jpne3l0.. 2005 Capital assets not being depreciated: $1089368 Less Accumulated Land $2,1931522 $589,885 Net $ 21783,407 Construction in Progress 2.7,552 29 9 $ (24".10 3Q1.545 Total capital assets not being depreciated 2,221,074 M..98-3 124.105) 23084,952 Capital assets being depreciated: Buildings 11,615,02 8 120,325 11,73 5,3 53 Improvements other Than Buildings 12,115,983 507,364 121,623,347 Machinery and Equipment 3.462,103 720 61 (86,836� I 4, 1096,22$ II Total capital assets being depreciated 27,193,114 1,34E . 1861$36) 28.454.928 Less accumulated depreciation for: Buildings (3,4881,280) (363,876) (318529155) Improvements Other Than Buildings (I ,2661526) (347,863) ( 120,350) (1,7349739) Machinery and Equipment (1,796,534) Q36.0.$70 , 76.389 (2,Q81.1018) Total accumulated depreciation ,(6.5512340) (1-.072,614) (43,961.) ..(7,6, 7.9121 Total capital assets, being depreciated, net 20,641,274 155 686 _ (10,447) .20,7a7.013 City capital assets, net Component_ Unit Tri -City Planning $51,110 $0 $(51,110) $ 0 Less Accumulated Depreciation (35.0 f4,3491 39.915 (0) Total 116.044 (4"8491 � (lam 42 Balance Balance July., 1,2004 Additions Deductions June 30.2„005 Internal Service Funds Data Processing $320,630 $ 5,478 $(2175,740) $1089368 Less Accumulated Depreciation 25 274 40 99 197,662 6a60 Net Component_ Unit Tri -City Planning $51,110 $0 $(51,110) $ 0 Less Accumulated Depreciation (35.0 f4,3491 39.915 (0) Total 116.044 (4"8491 � (lam 42 CITY OF KALI SPELL NOTES TO FINANCIAL STATEMENTS JUNE 309 2005 43 Balance Balance Business- e Activi ies: Jul 1 2004 Additions Deductions June30.20Q5 Capital assets, not being depreciated: Land $ 262,432 $ 262,432 Const. in Progress 2 421 0 135.334 $ 2 22 27 .331 .9,36 Total capital assets, not being depreciated 2 684 135334 (2,22 ,327) 594.35 Capital assets, being depreciated: Buildings 316,731 .3169731 Machinery & Equip 11718,018 2219631 (134,432) 11805,217 Source of Supply 757,838 767,838 Pumping Plant 1,5915,977 346,497 210383474 Treatment Plant 1497323,859 295,435 (1269145) 14,9023150 Transmission and Distribution 22,116,172 61,553,291 ( 122,872) 289546,592 General Plant 1,775,377 237,712 (41,033) 1,975,056 Stoma Sewer System 4.739,142 1 9 6 172 2 20 _....._ , ,J Total capital assets, being depreciated 47,861-114 90 426 682 57,02510 Less accumulated depreciation for: Buildings (1129813) (18,180) 2498 (1285495) Machinery & Equip (11038,594) (1389089) 122,452 (11054,202) Source of Supply (327,714) ( 17,568) (345,282) Pumping Plant (6803436) (49,197) (729,633) Treatment Plant (9,428,417) (7651,487) ..1251,145 ( 10,067,759) Transmission and Distribution (5,604,767) (501,366) 101,659 (7,0041474) General Plant (11,131,935) (1739134) 411,033 (1,264,036) Storm Sewer System (1,61-L206) (126 8 2 00 (13736.396) Total accumulated depreciation (20,936,2M ( 1,789,91.1.) 396,017 (2.2.,339.l,277) Total capital assets, being depreciated, net ,26,924.73.1 7 80 X33,163) 34,694.893 Business -type activities capital assets, net UE609L0 $(:258.490) S 35,282,261 Balance Balance July 1, 2004 Additions Deductions June30, 2005 Component Unit Parking Commission $79,459 $5,425 $(1,736) $821748 Less Accumulated . Depreciation 47 8 4 (6..6.511 1,33 6 (52.80a) Net 43 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Depreciation was charged to functions/programs of the primary government as follows: Governmental activities: General government $463,036 Public Safety 157,205 Public Works 104,285 Culture and Recreation 344,806 Community Development I Total 31000,000 Business -type activities: Water $ 4439557 Sewer 1,225,349 Ambulance 42,794 Solid Waste 7 211 Total I The depreciation on the capital assets held by the City's internal service funds is included in general government. E. Long -Term Debt Changes in Long -Term Debt Liabilities -- During the year ended June 30, 2005, the following changes occurred in liabilities reported in long-term debt: Balance Balance Due wlin July 1. 2004 Additions Reductions June 30, 209.5 I (I)G.O. Bond $3,4753,000 31000,000 (130,000) $6,345,000 $2609000 (1,2) Revenue Bonds 519511,391 3475394 (660,670) 596385,115' 7153,823 (2) SRF Loan-WWTP 39188,748 324,112 (259,000) 33,2539860 2699000 (1 ) Assessments 11341,91.2 31,693 .(1171107) 1,256,498 23,574 (1,2) Contract Debt/loans 723,918 3471,809 (1229092) 9499635 135,265 (1) Intermediary Program 0 94,000 0 Mow 0 (1,2,3) Comp. Absences 976.39$ $1136 132,262 (53.7Q21 $ (1.293.141) 1,054,958 S-18,5880066 2 4 (1) reported in long-term debt account group (2) reported in enterprise funds (3 ) reported in component units In prior years, the general fund was used to liquidate compensated absences and claims and judgments. 44 CITY OF KA►.LISPELL NOTES TO FINANCIAL STATEMENTS JUNE 309, 2005 General Obligation Bonds -- The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. General obligation bonds outstanding as of June 30, 2405 were as Mows.- Origination ollows: Origination Interest Due Principal Annual Balance Purn g Date Rate Term Date Amount Pay+ment June3_0 2005 Aquatic Facility 4115102 20/&4.9% 20 yrs 2022 $3,675,000 varies $3,3453,000 Fire Station #62 4101105 3%-6.5% 15 yrs 2020 3,000J0 0 4 varies 3,000,000 Special Assessment Debt — Special assessment bonds are secured by a lien on the assessed properties. The primary source of repayment is the assessments levied against the benefiting properties. However, the City is liable, to an extent, for repayment of these special assessment bonds. The City is authorized by State law to establish and has established a revolving fund to ensure the payment of debt service on the bonds in the event that assessed property owners default. Prin. Orig. Int. Due Purpose Date Rate Term Date SID 341 911195 6.06% 15 yrs.2011 SID 342 1111195 6.34% 15 yrs.2011 SID 343 6112101 3.6-5.5% 20 yrs -2021 1997 S & C 1011198 8.0% 8 yrs. 2006 1998 S &. C 1011199 7.75% 8 yrs. 2007 1999 S & C 111100 8.5% 8 yrs. 2008 2000 S & C 112101 9.5% 8 yrs. 2009 2002 S & C 112103 4.25% 8 yrs. 2011 2003 S & C 111104 4.0% 8 yrs. 2012 2004 S & C 113105 5.0% 8 yrs. 2013 Total Special Assessment Bonds Prin. Annual Balance Amount Pa ent June30.2005 $ 100,004 varies $ 30,000 209,000 varies 301000 1,581,500 varies 1,140,000 8,572 varies 500 1,687 varies 422 1,769 varies 663 2,315 varies .11,158 13,364 varies 10,023 13,758 varies 12,040 31,,692varies .15263,658 $1,256AU 31.,69 Revenue Bonds — Revenue bonds are directly related to and expected to be paid from the proprietary fund. The 2000 Westside Tax Increment bonds are accounted for in the General Long -Term Debt Account Group. 45 Issue Interest Final Bonds Balance Pu se Date Rate Term Maturily Issued June30.2005 2001 Water 6101 4.00% 20 yrs. 2021 $ 761,000 $ 6499400 2000 Solid Waste 3101 4.75% 5 yrs. 2006 159,265 53,089 2004 Water Refunding 5104 2.504.85% 20 yrs. 2024 L8409000 197205000 2004 Water 5144 2.70-3.85% 10 yrs. 2015 4899995 4719349 2002 Sewer[WWTP 4102 3.51% 9 yrs. 2011 2,3551000 11,385,000 2400 Westside TIF 3100 6.21% 10 yrs. 2010 25500,000 350,283 2003 'Nater 1103 2.85% 10 yrs. 2013 9075500 779,074 2005 Water 6105 3.8% 10 yrs. 2015 2303 4 230320 Total Revenue Bonds S 9s]26.006 $5,638,115 45 CITY OF KALI SP ELL NOTES TO FINANCIAL STATEMENTS JUNE 307 2005 Si nificant Provisions of the Series 2000 Westside Urban Renewal Tax Increment Bond Reserve Account — The City shall keep in the reserve account an amount equal to the maximum amount of principal and interest due on all outstanding bonds of the Westside Tax Increment District in the Then current or any future fiscal year. DIS Bond Max Principal and Debt Due in any future fiscal year $82,569 City's Reserve $823,569 Si nificant Provisions of the Wa' ter S stern Revenue Bon s Debt Service Account - Monthly an amount equal to not less than 116 of the interest due within the next six months and 1112 of the principal to become due within the next twelve months shall be credited to the debt service account. The debt service account was zero as of June 30, 2005, as all debt service payments were .made as of the end of the fiscal year, leaving no accrued interest or principal balance. Reserve Account - The City shall keep in the reserve account an amount equal m the lesser of .10% of the original principal or the maximum amount of principal and interest required in the current or any subsequent fiscal year. 2001 issue (maximum principal/interest due in fiscal year) $ 56,000 Other bond issues (10% of original issue) $346..782 Total Reserve Requirement Reserve balance 6130105 Property Insurance The City will cause all buildings, properties, fixtures, and equipment to be kept insured in amounts that are ordinarily carried. Liability Insurance - The City will carry insurance against liability of the City and its employees. Rates and Charges -- Rates and charges will be made and kept sufficient to provide gross income and revenues adequate to pay promptly the reasonable and current expenses of operating and maintaining the system and to produce in each fiscal year net revenues in excess of such current expenses, equal to 125% of the maximum amount of principal and interest payable from the Revenue Bond Account in any subsequent fiscal year. Cash Flow CgyMge Water Service Charges $155891,109 Misc. Revenue 9 ,98$ Total Operating Revenue $13,689,497 Less: Operating Expense (before depreciation) ,-1,090,417 Available for Debt Service Maximum Debt Service $ 474,380 Coverage FY05 127/0 46 CITY of KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 3012005 Sewer Revenue Bonds ordinances and Re uired Information Debt Service Account - Monthly an amount equal to not less than 116 of the interest due within the next six months and 1112 of the principal to become due within the next twelve months shall be credited to the debt service account. The debt service account was zero as of June 30, 2405, as all debt service payments. were made as of the end of the fiscal year, leaving no accrued interest or principal balance. Reserve Account - The City shall keep in the reserve account an amount equal to the lesser of 10% of the original principal, the maximum amount of principal and interest required in the current or any subsequent fiscal year, or 125% of the average debt service payable in any fiscal year. 10% of the original principal was the lesser of the two options for the 2002 bond resulting in a reserve requirement of $235,500. As of June 30, 2005, the debt service reserve account contains $759,152. Rates and Charges Rates and charges will be made and kept sufficient to provide gross income and revenues adequate to pay promptly the reasonable and current expenses of operating and maintaining the system and to produce in each fiscal year, net revenues in excess of such current expenses, equal to 125% of the maximum amount of principal and interest payable from the Revenue Bond Account in any subsequent fiscal year. Cash Flow Covera e Operating Revenue $3,178,215 Less: Operating Expense (before depreciation) 1.785.875 Available for Debt Service $1 -322mUU Maximum Debt Service $ 365,813 Coverage FY05 380% Operating Reserve Account -- The City shall maintain an operating Reserve equal to one month's operating expenses. The term operating expenses shall mean current expenses, paid or accrued, or operation, maintenance and current repair of the system and its facilities, and shall include administrative expenses of the city relating solely to the system, premiums for insurance on the properties, labor and the cost of materials and supplies used for current operation and for maintenance, and charges for the accumulation of appropriate reserve for current expenses which are not recurrent monthly but may reasonably be expected to be incurred in accordance with sound accounting practices. Such expenses shall not include any allowance for depreciation or renewals or replacements of capital assets of the system and shall not include any portion of the salaries and wages paid to any officer or employee of the City, except such portion as shall represent reasonable compensation for the performance of duties necessary to the operation of the system. The operating reserve account balance at June 30, 2005 was adequate. Audited Financial Statements w The City shall, within 120 days after the close of each fiscal year, cause to be prepared and supply to the original purchaser or purchasers of bonds issued hereunder and the bank or banks designated as agent for the payment of principal of and interest thereon a financial report with respect to the system of such fiscal year as prepared by an independent certified public accountant. The City is not in compliance with this requirement. Si nificant Provisions of the tool Solid Waste Revenue Bonds Debt Service Account - Monthly an amount equal to not less than 1/6 of the interest due within the next six months and 1112 of the principal to become due within the next twelve months shall be credited to the debt service account. The debt service account balance at June 30, 2005, was $24,095, which exceeded the required amount, Reserve Account - The City shall keep in the reserve account an amount equal to the lesser of 10% of the original principal or the maximum amount of principal and interest required in the current or any subsequent fiscal year. 10% of the original 47 CITY OF IALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 309 2005 principal was the lesser of the two options resulting in a reserve requirement of $15,927. As of June 30, 2005, the debt service reserve account contains $16,000. Rates and Charges Net revenues will be at least equal to .125% of the maximum amount of principal and interest payable in any subsequent fiscal year. 125% of maximum requirement $ 35,066 Net revenues $134,792 State Revolving Fund — In November 1991, the City entered into an agreement with the State Revolving Fund (SRF) to borrow funds to partially finance. the construction of a wastewater treatment plant facility. This obligation is to be repaid from the operating income of the sewer fund. In FY04, the City entered into another SRF agreement to borrow funds to finance the extension of sewer lines south of the City on Highway 93. Interest Amount Outstanding Origlinatign . Pumosg Rate- Term Borrour June 30,205 FY92 Sewer — SRF 4% 20 yrs. $3,913,425 $1,831,000 FYo4 sewer — SRF 3.75% 20 yrs 1,475,,8�0 JL422,860 Total SRF Loans $5389-285. $1251860 Loans/Contracted Debt Original Origination Interest Due Principal Balance Paws& Date Rate erne Date - Amo= June, 3 x,2005 *Board of Housing 311.195 6.0% 30 yrs. 211125 $ 271,000 $ 2245,810 BOI: Road Grader 2125100 2.85% 7 yrs. 2115107 1221Y352 389598 BOI: Trk/Leaf Ldr 1126101 2.85% 5 yrs. 2115106 885950 199342 BOI: PIU/Aerator 5116103 2.85% 5 yrs. 8115108 40,888 29,227 BOI: Bldg/Plow Trks 5116103 2.85% 5 yrs. 8115108 999390 71,046 BOI: City Hall HVAC 7116104 2.70% 10 yrs. 2115114 151,836 144,847 BOI: Streets Building 5116103 2.75% 5 yrs. 8115108 52,000 403,831 BOI: Fire Truck 4122105 3.80% 10 yrs. 8115115 2799944 279,900 BOI: Tractor/Mower 12123/04 3.80% 5 yrs. 2115110 67,909_ Total Governmental Fund Type $1,1741L5 16 12 Enterprise Funds BOI: John Deere Ldr 3110100 2.85% 7 yrs. 2115107 10 0 0 33,123 Total Loans $ 242,635 *BOI — Board of Investments Intercap Loan Program * The board of housing loan is paid from the proceeds of the rents on the Courtyard Apartments per the agreement with North west Human Resources. USDA: IRP 1011.2104 1% 30 yrs. 10/12134 48 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Compensated Absences Payable - compensated absences payable, which represent vacation, sick leave and compensatory time earned by employees, and is payable upon termination, were as follows: General Long -Term Debt Account Group $ 850,046 Enterprise Funds 2003581 Parking Commission 4 Total S L054,258 'Re quirements to amortize debt - -- 9IIIIIPPPI�IPIIPPI 9I��116 The annual requirements to amortize all long-term debt outstanding, excluding compensated absences payable, as of June 30, 2005, were as follows: F. State -Wide Retirement Plans Substantially all full-time City employees are eligible for one of three retirement plans: Montana Public Employees' Retirement System (PERS); Municipal Police Officer's Retirement System (MPGRS): and the Firefighters' Unified Retirement System(FURS). The plans are established by State law and administered by the State of Montana. The plans are cost-sharing multiple -employer defined benefit and/or defined contribution plans that provide retirement, disability and death benefits to plan members and beneficiaries. The City had a total payroll of $7,124,523 for FY05, of which $6,669,470 is covered by PERS, MPGRS, or FURS. Component Unit payroll covered by PERS was $50,088 for the Parking Commission, and $259,000 for Tri City Planning. Contribution rates for the plans are required and determined by State law. of covered payroll for the fiscal year ended June 30, 2005, were: PERS Employee 6.9% Employer 6.8% State 0.1% 49 The contribution rates, expressed as a percentage MPGRS GQ 9% SPECIAL ASSESSNIM 14.41% CCNTPACM 29.37% REVENUE POR MCAL BONDS 130 7m LONNSUEBT BCNIDS YW EMD I] PRINCIPAL- INT I ....... .............. ....... ....... ....... ...... . . . . . . ...... PRINDPAL I r RES I PI�O�IW INT�T PRIC�AL INTEREST TOTAL 2006 260100D 318 453 23,574 65 01 $404265 162,723 716,W 2MO71 2;166,909 2007 30Q00D 27Z72D 43,074 62848 413,274 151,2137 620337 1992% ZOEIZ726 2+OOB 31 QO D 2%,M 1 O,a63 60,960 392,152 13 470 608,668 1M384 Z031,762 2009 330.000 240,045 9,642 591644 388,356 1184959 628,M . 152,536 x,017,309 2D10 34Q0D 2234020 92,352 51,686 381,445 103,851 64= 127,692 1,96 276 20112015 1,9'15,00 9M103 +421,996 1934378 1,313,287 314,549 1,453,703 341,405 64800422 2M&2020 Z35Q,O]4 =350 400100D 87,690 52W 157,816 601,504 162326 A7K883 210-2025 54Q,0DD 78,645 80000 A400 $387,509 47,962 36 2 41,765 1,54 25;3 TOTAL 045,000 2,807,587 1,256,500 585,5197 4,203,495 1,191,537 5,638,115 1,407,745 2344 ,577 F. State -Wide Retirement Plans Substantially all full-time City employees are eligible for one of three retirement plans: Montana Public Employees' Retirement System (PERS); Municipal Police Officer's Retirement System (MPGRS): and the Firefighters' Unified Retirement System(FURS). The plans are established by State law and administered by the State of Montana. The plans are cost-sharing multiple -employer defined benefit and/or defined contribution plans that provide retirement, disability and death benefits to plan members and beneficiaries. The City had a total payroll of $7,124,523 for FY05, of which $6,669,470 is covered by PERS, MPGRS, or FURS. Component Unit payroll covered by PERS was $50,088 for the Parking Commission, and $259,000 for Tri City Planning. Contribution rates for the plans are required and determined by State law. of covered payroll for the fiscal year ended June 30, 2005, were: PERS Employee 6.9% Employer 6.8% State 0.1% 49 The contribution rates, expressed as a percentage MPGRS FUR, 9% 10.7% 14.41% 14.36°fin 29.37% 32-61% CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 The State contribution qualifies as an on behalf payment. These amounts have been recorded in the Cry's financial statements. The Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for all three plans. That report may be obtained by writing to Public Employees Retirement Division, P. D. Box 200131, Helena, MT 58620-0131 or by calling 1406444-3154. The City's contributions for the years ending June 30, 2003, 2004 and 2005, as listed below, were equal to the required contributions for each year. PERS MPGR FURS PARKING „CQMM TRI CITY 2003 $ 208,585 $ 1773,642 $ 1385247 $ 21883 $ 12,305 2004 $ 2191461 $ 184,194 $ 1639934 $ 2,656 $ 14,377 2005 $ 245,330 $ 2029507 $ 1939135 $ 3,406 $ 17,612 G. Post Employment Health Insurance Benefits Terminated employees may remain on the City's health insurance plan for up to 18 months if they pay the monthly premiums. This benefit is required under federal C.G.B.R.A. law. Retirees may remain on the City's health plan as long as they wish, provided they pay the monthly premiums. State law requires the City to provide this benefit. No cost can be estimated for the above benefits, although there is the probability that there are higher medical costs for retirees which would result in additional casts to the insurance program. There are no other post -employment benefits provided by the City. H. Amounts Due From and Due To other Governments The amounts due from and due to other governments consisted of the following: General Fund: Due from State of Montana Due from Flathead County Total Special Revenue Funds: Due. from Flathead County Due from CDB G Due from Dept. of Justice Total Debt Service Funds: Due from Flathead County Enterprise Funds: Due from Flathead County $ 1,328 534.637 $ 535.965 $ 294,550 Due to Contractors -Retainage $ 8,571 1,000 Due to/from NwMTHR 4 4 D Total $ 124.756 Due to Contractors -Retainage $ 11.253 50 CITY OF KALISPELLL NOTES TO FINANCIAL, STATEMENTS JUNE 30, 2005 1. Restricted Cash/Investments The following restricted cash/investments were held as of lune 30, Zoos. These amounts are reported within the cash/investment account on the Combined Balance Sheet. Business- Acps Water Bond Reserve (includes SRF & BCCI) $ 422,882 Sewer Operating Reserve 213,000 Bond Contingency 759,152 Evergreen SRF Bond Reserve 391,893 Garbage Bond Reserve 169000 Sinking & Interest 249095 GovernmenIllActees Westside TIF Bond Reserve 149 5 J. Restatements During the current fiscal year, the following adjustments relating to prior years' transactions were made to fund balance and retained earnings accounts. Fund Amount Reason for Adjustment General $963,044 FY04 Revenue/Expenses of General Fund Statement of Activities ($61,280) FY04 Revenue/Expenses of General Fund Sewer ($11,650) Expense of prior year Statement of Activities ($17,902) Change of policy Tri -City Planning ($14,110) Asset Adjustment K. Joint ventures Joint ventures are independently constituted entities generally created by two or more governments for a specific purpose which are subject to joint control, in Which the participating governments retain 1) an ongoing financial interest or 2) an ongoing financial responsibility. 1, City -County Health Department The City -County Health Department is operated under an interlocal agreement between Flathead County and the City of Kalispell. The Department operates under the supervision and control of the City -County Health Board. The Board consist of seven members, six of whom are appointed by the Board of County Commissioners. The Department is financed, in addition to revenue generated by providing health services, by the City and the County levying an identical Trull levy, up to 5 mills, in order that all property Within the City of Kalispell and all property in Flathead County outside the City limits are taxed equally. The operation is accounted for in the City Health Fund and is included in the general purpose financial statements of Flathead County within the Special Revenue Fund. 51 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 309 2005 2. Courtyard Apartments/Northwest Montana Human Resources The City entered into an agreement with Northwest Montana Human Resources for a joint venture construction project of the Courtyard Apartments. The City owns 16 units of the apartment complex built with Home Grant and CDGB funds. has built 16 units also. The agreement provides for the management of the housing complex for low income housing. All operations and maintenance of the housing complex are managed by Northwest Montana Human Resources. NWMHR maintains a trust fund in the City's name to record the revenues and expenses of the housing complex. As of June 30, 2445 the equity in the fund was $40,209. The debt payments on the mortgage are paid from the proceeds of the rents by The principal balance is recorded on the City's books in the Long -Term Debt Group of Accounts. The original amount of the loan was $271,000. The balance as of June 30, 2005 is $224,810. L. County Provided Services The City of Kalispell is provided various financial services by Flathead County. The County serves as cashier and treasurer for the City for tax assessment collections and other revenues received by the County which are subject to distribution to the various taxing jurisdictions located in the County. The collections made by the County on behalf of the City are accounted for in an agency fund in the City's name and are periodically remitted to the City by the County Treasurer. The County charges the City for fees associated with City Special Assessments. M. Risk Management The City faces a considerable number of risks of loss, including a) damage to and loss of property and contents, b) employee torts, c) professional liability, i.e., errors and omissions, d) environmental damage, e) workers' compensation, i.e. employee injuries, and f) medical insurance costs of employees. A variety of methods are used to provide insurance for these risks. Commercial policies, transferring all risks of loss, except for relatively small deductible amounts are purchased for property. and content damage and professional liabilities.- The City participates in two statewide public risk pools operated by the Montana. Municipal Insurance Authority, for workers' compensation and for tort liability coverage. Employee medical insurance is provided through a state-wide health insurance pool administered by MMIA. Given the lack of coverage available, the City has no coverage for potential losses from environmental damages. Effective July 1, 1987 The City of Kalispell joined with other Montana cities to farm the Montana Municipal Insurance Authority, a self-insurance pool offering Worker's Compensation and Liability Coverage. Both public entity risk pools currently operate as common risk management and insurance programs for the member governments. The liability limits for damages in tort action are $750,000 per claim and $1.5 million per occurrence with a $11,250 deductible per occurrence. State tort law limits the City's liability to $1.5 million. The city pays an annual premium for, its employee injury insurance coverage, which is allocated to the employer funds based on total salaries and wages. The agreements for formation of the pools provide that they will be self-sustaining through member premiums. The tort liability plan and workers' compensation program issued bonds in the amount of $4.41 million and $7.610 million, respectively, to immediately finance the necessary insurance reserves. All members signed a contingent note for a pro rata share of this liability in case operating revenue was insufficient to cover the debt service. The City's share is $201,445 for liability and $281,715 for Workers' Compensation to finance the necessary insurance reserves. Based on the plan's current financial position, the City doesn't expect to make any payment on these notes. Separate financial statements are available from the Montana Municipal Insurance Authority. 52 CITY OF KALISPELL NOTES TO FINANCIAL, STATEMENTS JUNE 30, 2005 The City of Kalispell ceased its self funded employee health insurance plan on June 30, 2004. From July 1 through September 30, 2004, the City provided employees with a fully funded plan through Blue Cross/Blue Shield. On October 1, 2004, Kalispell signed a 5 year agreement with many other Montana Cities, and through the Montana Municipal Insurance Authority, to create a state wide health insurance pool. The City pays the total monthly premum for employees who only choose to cover themselves. For employees who choose to cover additional dependents, the City pays a percentage of the extra costs. N. pending Litigation The following is a list of litigation pending against the City and the amount of damages claimed by the Plaintiff. The City Attorney has made no evaluation as to the outcome of each case. The City has liability insurance that may cover all or part of the damages. Accordingly, no provision has been made in the financial statements for these contingent liabilities. 0. Loans Receivable The City entered into a community development program, which includes funding from a community development block grant, to make available to eligible applicants (low -to -moderate income residents), a loan for at least one-half of the required rehabilitation cost. These funds from the City, together with loans from the First Federal Savings Bank (now Glacier Bank) of Montana, the lender, must provide the total funds required for the purchase and rehabilitation of the housing unit. At the time the bank loans are closed with the borrower, the proceeds of the City's loan will be deposited into the borrower's construction account at First Federal. The City's loan is secured by the property, and filed in a third lien position. Repayment of the City loan will not begin until 30 days after the Lender's loan (second lien) for construction of the unit has been paid off. The City's loan is interest free until such time as repayment begins. The maximum amount of a private lender loan cannot exceed $20,000 per property with a ten-year pay back. In addition, when an owner -occupant is unable to afford a private lender loan at the pre -determined interest rate agreed to by the City and lender, he or she may qualify for City financing. The City may provide a direct loan of up to $25,000 with a varying interest rate (as low as zero percent) or with a longer amortization period (maximum of fifteen years) or a deferred loan to be repaid simultaneously, at a later date, with a balloon payment, or to be released at the end of ten years. 53 Damages Requested-- ss Potential tatus NuPac v. Ci of Kalispell $701000 remote Settlement -- 12105 Olson v. Ci $ 1 NO possible Justice Court Glick v. Ci $32,0005000 remote MMIA Cameron v. City none specified_possible MMIA Bur ert v. 9�1.,et al. unknown remote Federal Court KruckenbeELv. City none none District Court West North v. City none nominal District Court Harper v. Ci $75 Ono remote MMIA Bud Kal v. City None none District Court Talmadge v. City Budget Finance None specified unknown remote remote District Court Filed -Federal Dist. Court 0. Loans Receivable The City entered into a community development program, which includes funding from a community development block grant, to make available to eligible applicants (low -to -moderate income residents), a loan for at least one-half of the required rehabilitation cost. These funds from the City, together with loans from the First Federal Savings Bank (now Glacier Bank) of Montana, the lender, must provide the total funds required for the purchase and rehabilitation of the housing unit. At the time the bank loans are closed with the borrower, the proceeds of the City's loan will be deposited into the borrower's construction account at First Federal. The City's loan is secured by the property, and filed in a third lien position. Repayment of the City loan will not begin until 30 days after the Lender's loan (second lien) for construction of the unit has been paid off. The City's loan is interest free until such time as repayment begins. The maximum amount of a private lender loan cannot exceed $20,000 per property with a ten-year pay back. In addition, when an owner -occupant is unable to afford a private lender loan at the pre -determined interest rate agreed to by the City and lender, he or she may qualify for City financing. The City may provide a direct loan of up to $25,000 with a varying interest rate (as low as zero percent) or with a longer amortization period (maximum of fifteen years) or a deferred loan to be repaid simultaneously, at a later date, with a balloon payment, or to be released at the end of ten years. 53 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 The City has $1,720,692 recorded as loans receivable as of June 30, 2005 in the Community Development Loan Revolving Fund. The above mentioned loans are offset with deferred revenue accounts. Uncollected receivables in governmental funds are offset with deferred revenue accounts as explained in the "basis of accounting". The following loans were made by the City using Urban Development Assistance Grant (UDAG) funds: A 20 year redevelopment loan at 5% with Big Sky Manor in August 1999. Original Loan amount $ 1249000 June 30, 2005 balance $ 99,985 A 20 year redevelopment loan at 6% with United way in January 2000. Original Loan amount $ 133,500 June 30, 2005 balance $ 111,372 P. City Court Contracts Receivable Contracts receivable of the City Court, because of the uncertainty regarding when and if they will be Collected, will no longer be booked as an asset on the. balance sheet of the General Fund. These receivables, at June 30, 2005, amounted to $771.,787. Q. wastewater Treatment Plant agreement with Evergreen The City of Kalispell entered into an Interlocal Agreement with the Evergreen Sewer District #1 for treatment of sewage from the district at the City's plant. The Evergreen district sewer went into operation in July 1994. The City bills Evergreen monthly for debt service at 22% of the principle and interest due for the plant. The City also bills for maintenance and operation and replacement costs per the agreement based on metered flows. Evergreen Sewer District has an equity interest in the replacement account carried on the City's books. The balance of the account as of June 30, 2005 is $2,567,569 of which Evergreen's interest is $526,350. The City of Kalispell has sole responsibility for the use of these funds. R. Gateway west Mall Flathead County Economic Development Authority, Flathead County and the City of Kalispell entered into an inter -local agreement to purchase 59,000 square feet of the Gateway west Mall for $2.5 million and sign a ten-year lease with Stream International, Ltd. The City of Kalispell agreed to acquire the property by issuing a $2.5 million tax increment urban renewal bond. The City then conveyed the property to the Authority as "tenants in common". The County through the Authority became vested with an undivided 37% interest in the property with the City vested with the remaining 63% interest. As a result of this conveyance, the Authority recognized its portion of the building and the related debt on their books. The Authority is responsible for the operation maintenance of the property during the term of the initial ten-year lease. The Authority is also responsible for the carrying of property insurance against the property. The City has agreed to reimburse the Authority for its proportionate share of these costs. The Authority has agreed to levy up to two mills or $156,000 for the term of the bond, and has pledged $30,567 of the revenue generated each year to be remitted to the City of Kalispell in two equal installments of $15,284 that will be used toward the retirement of the tax increment bond. The authority shall also set up and contribute $3,000 to a building reserve 54 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 fund each year of the lease. The reserve will be used for any repair or construction work deemed necessary in maintaining the property. The City issued the tax increment bonds in its name and agrees to be punctual in all debt payments, and will keep all proper records and meet all necessary requirements of the bond resolution. The City shall also set up and contribute $5,004 to a building reserve fund for each year of the lease. The reserve will be used for any repair or construction work deemed necessary in maintaining the property. The Authority shall manage this building reserve. The City has pledged the following revenues towards the repayment of the $2.5 million bond: 1. Tax increment money generated from the Westside Tax Increment District until the City reaches their share of the debt payment or $52,000. 2. The Authority's annual contribution of $30,567. The County has agreed that it will approve the Authority's levy for an ad valorem property tax of up to two mills on all taxable property in the County, until the tax increment bond is paid. Within 180 days of the payment in full of the Bond, either the authority or the City may give notice to each other of intent to purchase the property. The purchase price to be paid will be equal to the total debt service paid by the other party. The Authority has the first option of buying the property from the City. If -neither the Authority nor the City want to purchase the property outright, then the City has granted American Capital a right of first refusal to purchase the property. The proceeds from the sale of the property shall be distributed based on the equity interest each entity holds. In August of 2003, Stream International closed their computer support call center in the Gateway west Mall building, and subsequently bought out -the remaining portion of their 10 year contract with the City. In February of 2044 the City entered into an agreement with TeleTech Holdings, Inc. TeleTech which will operate a Call-in Center, similar to Stream's operation, entered into a lease structured similar to Stream's. Rent abatement is tied to jobs created and maintained and pay. TeleTech will also pay the guaranteed minimum tax payment of $140,000/year. This ensures that the City will be able to meet its portion of the debt obligation related to the Gateway West. Mall building.. S. Long Term Loans Receivable Hampstead Partners In August of 2402, the City of Kalispell entered into two (2) notes receivable agreements with 2nd Avenue west Partners, L.P. (Hampstead Partners) for property on 2"d Avenue west in Kalispell. The property consists of a 40 -unit ]ow- income apartment complex known ars 2 d Avenue West Independent Living Center. As stipulated in the agreement, this property is restricted as low income housing, and shall remain as such for a period of thirty-five years. One of these notes is for $480,000, and bears interest at 1% per annum.. This loan matures on February 28, 2032. Payments of interest on the note are due on or before the last day of the taxable year, to the extent there is surplus cash, as defined by the note. Unpaid interest shall accrue until paid, but does not compound. Payments of principal are not required until the maturity date of the loan. The note is secured by a deed of trust on the property. Accrued interest as of June 30, 2005, is $14,055. The second of these notes is for $400,004, and bears interest at 4.81%, a blended rate obtained by averaging, on a weighted 55 CITY of KALISPELL NOTES To FINANCIAL STATEMENTS JUNE 303, 2005 basis, the interest rates applicable to the advances made pursuant to this note. This loan matures on February 28, 2032. Payments of interest on the note are due on or before the last day of the taxable year, to the extent there is surplus cash, as defined by the note. Unpaid interest shall accrue, and compound annually, until paid. Payments of principal are not required until the maturity date of the loan. The note is secured by a deed of trust on the property. Accrued interest- as of June 30, 2005, is $46,4$8-. WestCoast Hospitality Limited Partnership (Barbieri Agreement) On November 4, 1996, the Kalispell City Council, exercising the powers of an urban renewal agency, adopted ordinance No. 1245, approving the Kalispell Center (Mall) Expansion as an urban renewal project, and authorizing the use of tax increment revenues (Downtown TIF) to finance certain acquisition and demolition necessary to the Kalispell Center (Mall) Expansion. This ordinance also authorized the entering into of a development agreement with Kalispell Center Limited Partnership (developer) in order to accomplish the Kalispell Center (Mall) Expansion. In accordance with ordinance No. 1248, on July 21, 1997, the City of Kalispell entered into a note receivable agreement with Barbieri Investment Company, Inc., in the amount of $890,900, for the acquisition, demolition and redevelopment of land owned by Equity Supply Company. This note has since been assigned to WestCoast Hospitality Limited Partnership as the beneficial owner of the Kalispell Center Property. Tums of this agreement stipulated that if the borrower invested $6.6 million toward the Kalispell Center Expansion within thitty (30) months from the. closing of the sale of the Equity Property (April 1, 1998), all the debt would be forgiven. Also, any investment in the expansion, prior to or after the thirty (30) months, would reduce the principal on a pro rata basis. If the $6.6 investment was not made in this time frame, interest at 9% annually on the remaining principal was to begin to accrue and repayment of the principal and accrued interest would commence in 144 installments. Principal outstanding as of June 309 2005, was $646,158. The Downtown Tax Increment District sunset in fiscal year 2002. Any tax funds left at the sunset of this district were to be split on a pro rata basis between the taxing bodies (City, County, School District). Because this loan was made with tax increment funds, the County and School District argued that the principal payments on this loan should also be split and distributed. An agreement was reached between the three (3) taxing bodies regarding these funds. T. Subsequent Events WestCoast Hospitality Limited Partnership (Barbieri Agreement) On August 2, 2005, we received a letter from WestCoast Hospitality Limited Partnership which conveyed their plans of an initial investment of $5 million by the summer of 2006 in the Kalispell Center. This investment in the project would .reduce their repayment obligation by approximately $675,302, which is more than the principal balance of $630,161 (see note s). Kalispell City Airport Project The City of Kalispell is in the process of upgrading the Kalispell Municipal Airport. Upgrades include installation of underground utilities, various runway improvements, an internal vehicle access road (16' wide), an automatic security gate, and complete enclosure of the airport with fencing. The airport is part of an urban renewal district and, as such, the council approved the use of district money for these upgrades. Many of these upgrades will be eligible for matching FAA (90%), and Montana Aeronautics (5%) funds. 56 CITY OF KALI SPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Debt On September 15, 2005, the City of Kalispell issued $2,000,000 of tax increment urban renewal revenue bonds. This issue consisted of $1,445,000 Series 2005A (Nan -AMT) bonds and $555,000 Series 2005B (AMT) bonds. These bonds were issued to provide funds to be used, with other available funds to finance the cost of certain urban renewal projects (the "2005 Projects) to be undertaken in the City Airport/Athletic Complex Urban Renewal District. The 2005 Projects generally comprise improvements to the City's municipal airport. The projects to be funded from the Series 2005A Bonds include the construction of an internal vehicle access. road (16 feet wide), and the purchase and installation of an automatic vehicle security gate, all at the Kalispell Municipal Airport at the cost of $1,100,000. The projects to be funded from the proceeds of the Series 2005B Bonds include the purchase of land and improvements currently owned by Red Eagle Aviation, at an expected cost of $734,000. Costs of the Red Eagle Aviation Project in excess of the proceeds of the Series 2005B Bonds will be paid from available tax increment funds or Municipal Airport funds. Issue Interest Final Bonds Pros Date Rae Term Malurily Issued 2005A TIF Urbal Renewal 9/15/2006 3.8-4.4% 15 years 2020 $1,455,000 2005B TIF Urbal Renewal 9/15/2006 3.55.3.95% 5 years 2010 $ 555,000 New City Hall Project On July 18, 2005, by resolution 5032, the City Council authorized the execution of a purchase and sale agreement with 'Wells Fargo -Bank for the purchase of the wells Fargo Bann building located at 201 1" Avenue East. This building, acquired for $1,100,000, will be used to house additional City offices. The acquisition will allow the City to house all of its departments within that facility and current City Hall into the next decade and thereby allow the City to eliminate its leasehold costs as well as improve the access needs of the public to City services. As a part of the negotiations with Wells Fargo Bank for the purchase of its facility, the city will agree to lease the facility, at market rate, back to Wells Fargo for a period of up to one year to allow it the necessary time to construct a new banking facility within the City. Debt The City entered into a loan agreement with the Montana Board of Investments for the $1,100,000 purchase price of the Wells Fargo building. The City also plans to borrow and additional $500,000 for remodeling. Origination Interest Due Original P urpose Date . Rate Term Date Principal Wells Fargo Building 9/16/2005 varies 10 years 2016 $12100,000 57 CITY OF KALISPELL NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 MreW4I 676 . VI _i I Me Project Effective August 15, 2005, the City Council, by resolution #5054, annexed 55 acres of property, to be known as old School Station Addition No. 364, located just east of Highway 93 on Demersville road approximately 1.9 miles south of Four Corners intersection and directly east of the Rocky cliff road intersection. By resolution No. 5063, on October 3, 2405, these 55 acres were specified a Special Improvement District. The District will contain the first industrial/technology park in the City and will have 17 lots available for development. The improvements, as proposed, consist of the (i) design, grading and construction of underground conveyance lines for water, wastewater, and storm water, and (ii) design, grading and construction of underground utility lines for gas, electric and telephone services, and (iii) design, grading and construction of streets, gutters and sidewalks. All improvements will be constructed to City of Kalispell Design and Construction Standards. The total estimated cost of the improvements is $4,550,000. The purpose of the formation of the District is to provide a mechanism (bond proceeds) for financing costs of the improvements and paying costs incidental thereto. The bonds are to be payable primarily from special assessments to be levied against property in the District. 58 REQUIRED SUPPLEMENTARY INFORMATION Federal Grantor/Pass-Through G[MtorfPmetetn Title U.S. Deo_ arty t of Hou ng and Urban Devdgglo tI Paved thne the Stare Dggm of Commeire Community Development Block Grant Total U. S. Department of Hensing avid Urban Development U. S. Peeartment of Transuortatloo Parsed thm the State Department of Trampor rattan Highway Planning and ConstruWon Community Transportation Enhwxwncnt Program(CTEP) Highway Planning and Construction - Montana Air and Congestion initiative Highway Traffic Safety -Kalispell Occupant Protection Highway Traffic Safety -Kalispell Occupant Protection Total U. S. Department of Tranq"wintlen U. S. Department of justlee Direct: Universal Grant Pasted through Flathead County., Drug Control and S� Grant - Formula Grant Passed through Vat6 of [.'rune Lontrot EUDL National Conference Total U. S. Department of Justice US, Raortzmeat of Homeland Samrity Direct FEMA Grant FEMA Grant Total U. S. Department of Homeland Security Total Federal AidsOnce City of Kalispell, Flathead County, Mmtwta S 75 000 S 414 S 27,500 S 28,314 S 26,365 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS S 1 X49 For Fiscal Yew Faded June 30, 2005 S - 16.727 NIA NIA $ 6.591 S 51,381 $ 20,000 S 49,130 $ 20,000 Ending Federal Pass -Through Award Beginning Bal Federal Matcli/other Federal MatcWdter Balance A M Gum mods # Amount I -Jul -04 Revenue Revenue Ex ditmrs Eapenditum 30 -Jun -05 14.228 MT-CDBG-04HR-02 $ 324,300 S 324,3M $ 324,5M S - - 324 S 48=314 S 324M S $ 10,591 20.205 S 1,025,540 S 1025,540 S 158,960 S 1,025,540 $ 158,960 S - 20.205 STPE6799(23) $ 197,074 3 15,037 S 10,444 $ 2,123 $ 27,604 21,420 $ - 20.205 $ 146,585 $ 146.585 $ 22,721 $ 146,585 $ 22.721 S - 20.600 05-08-02-12/05-13-01-12 $ 41,100 $ 22,263 # $ 79,953 $ 22,263 q_$ S - 20.600 04-10-08-08104-13-01-08 S 21,000 $ 13,264 1708 7 - $ 13,264 1722 481 S - $ 151037 $ 1,218,096 - # S 193,804 $ „ 1,235 56 $ 181,681 $ - 16.710 2003UMWX,0313 S 75 000 S 414 S 27,500 S 28,314 S 26,365 $ 28,314 S 1 X49 S - 16.727 NIA NIA $ 6.591 S 51,381 $ 20,000 S 49,130 $ 20,000 S 9,042 S - 16.727 01 -MI -84558 S 7,277 $ 7,277 7.277 $ - $ 7.005 $ 86 3S8 S 48=314 $ 82,772 $ 48,314 $ 10,591 97.044 EMW-2003-FG-02556 S 11 7,3M $ 8,136 $ 68,332 S 68,332 S 8,136 $ - 97.044 EMW-2003-FP-01886 S 21,420 $ 11,621 $_ 1,291 $ 11,621 S 1,291 $ S 8,136 # $ -,, 79,953 # $ 1,291 # $ 79,953 # $ 9,427 q_$ 30.178 - 1708 7 - 233 409 1722 481 239,422 - ..1111.91 CITY OF KALISPELL FLATHEAD COUNTY, MONTANA NOTES To THE SCHEDULE of EXPENDITURES of FEDERAL AWARDS Fiscal Year Ended June 30, 2005 Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of City of Kalispell, Flathead County, Montana, and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Me 61 City of Kalispell BUDGETARY COMPARISON SCHEDULE June 30, 2005 General Fund CD Loan Revolving ACTUAL Iuu_I 1 1 114111 V I I I _� I�I�Irlrl.l4.PPI9991IIIIII�I�1ryp1 ACTUAL AMOUNTS VARIANCE AMOUNTS VARIANCE BUDGETED AMOUNTS ORIGINAL FINALQRICINAL (BUDGETARY WITH FINAL AUDGETED AMOUNTS (BUDGETARY WITH FINAL Budgetary Fund Balance, July 19 20014 Resources 1,094,864 1,094,$64 1,224,330 129,466 723,224 FINAL 723,2.24 BASIS) 90 Note A 723,234 BLMET - (inflows): Taxes and Assessments 3,513,824 3,513,824 3,495,530 - (18,290) _ _ .. - Licenses and Permits 108,245 108,248 116,257 8,009 - - Intergovernmental 2,913,735 2,913,735 2,882,364 (31,371) - - 4,242 4,242 Charges for Services 712,273 712,.273 841,492 129,219 - - 143,135 143,135 Fines and Forfeitures 450,000 450,040 535,875 85,875 - - - - Miscellaneous 96,033 96,033 111,485 15,452 - - _ _ Investment Earnings 25,000 . 25,000 252,293 227,293 159,831 159,831 8,995 (150,836) Transfers In 866,922 866,922 866,922 - - Proceeds LTD 91,700 91,704 67 908 (23,792) - _ Amounts available for appropriation 9,872,595 9,872 595 10,394 456 521,861 883,055 883,05579,596 8 (3,459 General Government 1,799,228 1,799,228 1,524,123 275,105 - - - - Public Safety 5,100,787 5,100,787 5,078,904 21,883 - - Public Works 408, l 48 408,148 423,469 (15,321) - - Parks and Rec 899,837 947,837 891,469 56,368 - - Community Development - - 225,000 225,000 223,746 1,254 Miscellaneous - 1,517 (1,517) - - - - Unallocated depreciation Debt Service Expense - Principal 27,029 27,029 36,393 (9,364) Debt Service Expense - Ingest 5,565 5,565 5,565 - Capital outlay 138,740 138,700 137,836 864 Transfers (Out) 110,814 ., 11I0,81I I4II I(IIIIII III(IIIIIILII....I, 2Ill,34980 (13,166) 100,000 100,000 100 000- Total Charges to appropriations 8,490,148 8,538,108 8,2Z2256 314,852 325.000 325,000 323,746 1254 Excess (Deficiency) of resources (inflows) over Charges to appropriations (outflows) 2,171,200 555,850 Restatements Iinlill Innrlllr-III-Irl nlll 96,444 - Budgetary Fund Balance - June 30, 2005 2,267,244 555,850 61 City of Kalispell BUDGETARY COMPARISON SCHEDULE BUDGET -TO -GAAP RECONCILIATION Note A - Explanation of differences between budgetary inflows and outflows and GAAP Revenues and Expenditures General Fund CD Loan Revolvin iyw I -1----WIIlggqll9l� Sources/Inflows of resources Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparision schedule 10,394,456 8795595 The fund balance at the beginning of the year is a budgetary resource but is not a current year revenue for financial reporting purposes. (13,2243330) (7235224) Transfers from other funds are inflows of budgetary resource but are not revenues for financial reporting purposes (8665922) Proceeds from long team debt are inflows of budgetary resource but are not revenues for financial reporting purposes (671,908) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances -governmental funds. 8,235 296 1569372 Uses/Outflows of resources Acutal amounts (Budgetary basis) "total charges to appropri ati ons" from the budgetary comparison schedule 812239,256 323,746 Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes. (123,980) (100,040) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances - governmental funds 8,099 276 2231746 W-14 Denning, Downey &Ass ociates, P.C. CERTIFIED P UBLIC A CCO UNTA NTS 1740 U.S. Hwy 93 South - Suite 101 Kalispell, MT 59901 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH Go YERNMENT A UDITING STANDARDS Mayor and City Council City of Kalispell Flathead County Kalispell, Montana We have audited the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Kalispell, Flathead County, Montana, as of and for the year ended June 30, 2005, which collectively comprise the City of Kalispell's basic financial statements and have issued our report thereon dated January 26, 2006. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered City of K.alispell's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Kalispell's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no. instances of noncompliance that are required to be reported under Government Auditing Standards. Robert K: Benning, CPQ! • Kim M. Downey, CPA 63 This report is intended solely for the information and use of the Mayor and City Council, management, the Montana Department of Administration, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. January 26, 2006 CPA M Denning, Downey & Associates, P.C. CERTIFIED P UBLIC A CCO UNTA NTS 1740 U.S. Hwy 93 South - Suite 101 Kalispell, SIT59901 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Mayor and City Council City of Kalispell Flathead County Kalispell, Montana Compliance We have audited the compliance of City of Kalispell, Flathead County, Montana, with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-1.33 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2005. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the City's management. our responsibility is to express an opinion of the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, .focal Governments and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. our audit does not, provide a legal determination on the City's compliance with those requirements. In our opinion, the City complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2005. Internal Control over Compliance The management of the City is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing an opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A--133. Robert K Denning, CPQ! • Kim M Downey, CPA 65 Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended for the information of the Mayor and City Council, management, others within the organization, the Montana Department of Administration, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. "4.1 1'11U� January 26, 2006 .m CITY of KALISPELL FLATHEAD COUNTY, MONTANA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Fiscal Year Ended June 30, 2005 Section I — Summary of Auditor's Results Financial Statements Type of auditor's report issued Unqualified Internal control over financial reporting: Material weakness(es) identified? No Reportable condition(s) identified not considered to be material weaknesses None Reported Noncompliance material to financial statements noted.? No Federal A wards Internal control over major programs: Material weakness(es) identified? No Reportable condition(s) identified not considered to be material weaknesses None Reported Type of auditor's report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section .51 o(a)? No Identification of major programs: CFDA Number Name of Federal Program or Cluster 20.205 Highway Planning and Construction Dollar threshold used to distinguish between Type A and Type B programs: $300,000 Auditee qualified as low-risk auditee? No 67 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section II financial Statement Find No Financial Statement Findings were reported. Section III —Federal Award Findings and Questioned Costs No Federal Award Findings or Questioned Costs were reported. 0 Denning, Downey & Associates, P.C. CERTIFIED P UBLIC A CCO UNTA NTS 1740 U.S Hwy 93 South - Suite 101 Kalispell, 11 T 59901 REPORT ON OTHER COMPLIANCE, FINANCIAL, ANIS INTERNAL ACCOUNTING CONTROL MATTERS Mayor and City Council City of Kalispell Flathead County Kalispell, Montana There were no other compliance, financial, or internal accounting matters. A(I COq " January 26, 2006 Robert K Denning, CPA - Kim M Downey, CPA 69 Denning, Downey & Associates, P.C. CERTIFIED P UBLIC A CCO UNTA NTS 1740 U.S. Hwy 93 South - Suite 101 Kalispell, MT 59901 REPORT ON PRIOR AUDIT REPORT RECOMMENDATIONS Mayor and City Council City of Kalispell Flathead County Kalispell, Montana The prior audit report contained three recommendations. The action taken on each recommendation is as follows: Recommendation Action Taken 04-1 Management Review of the Journal Vouchers Implemented 04-2 MAOI Grant Not on Federal Schedule Implemented 04-3 Exceeding Budget Authority Implemented clon January 26, 2006 Robert K Denning, CPA • Kim MDowney, CPA 70 OTHER SUPPLEMENTARY INFORMATION 71 City of Kalispell, Montana Nonmajcw Governmental Funds Combining Balance Sheet June 30, 2045 2170 2185 2188 2210 1215 AIRPORT AIRPORT WESTSIDE PARKS IN LIEU AQUATIC ASSETS INCREMENT INCREMENT FACILITY Current Assets:_ -. Cash and investments S 479799 S 194929635 S 193969146 S 82,195 S 10,521 Taxes Receivable - net S 359422 S 116 Current portion of interfund receivable Due from other governments 529549 Due from Board of Investments Current portion of notes receivable Prepaids Due from other funds Due from others Total current assets $ 47:9799 S 1,184,606 S 1,3%,,262 $ 82,195 S 10 21 Noncurrent au=: Restricted cash Interfund receivable Loans receivable Deferred Assessments Rec. Total noncurrent assets Q 0 0 0 0 Total Assets 47 799 1,180,646 1 96.,262 8.2195 10,52211 LIABILITIES Current Lijbilfts: Accounts Payable S 19,335 S 153,858 S 500 $ 159256 S 3,396 Accrued Payroll 79,125 Due to other funds Deferred Revenue 35,422 116 Other current liabilities Total current liabilities S 1,335 $ 51 r2so S 616 S 15,Z86 $ 1 Q_y521 Noncurrent U&Ilities: Deferred revenue - Loans Receivable Deferred Revenue-Deferred Assessments Rec. Total Noncurrent Liabilities S 0 $ Q S 0 S Q S 0 Total Liabilities $ 1 35 S 51,280 S 616 $ 15J86 S =2 FUND BALANCES Reserved foradvances Reserved for debt service Unreserved, reported In general fund Unreserved, reported in special revenue funds S 469464 S 19129,326 S 1,395,646 $ 66,909 Unreserved, reported in capital project funds Total Fund Balances S 46.464 S 11129,326 S 1,395,646 S 66,909 S - Total Liabilities and Fund Balances $ 47,799 $ 1,180,606 S 1,396,262 $ 82,1195 S 1 OrS21 71 City of Kalispell, Montana Nonmajor Governmental Funds Combining Balance Sheet June 30, 2005 72 2372 2394 2400 2401 2420 PERMISSIVE BUILDING LIGHT DECORATIVE GAS TAX ASSBTS HEALTH LEVY ENFORCEMENT MAINTENANCE LIGHT MAINT. Current Assets-� Cash and investrnents $ 448,037 $ 53,417 S 31166 $ 3619,010 Taxes Receivable - net $ 351,874 S 12,186 $ 386 Current portion of interfund receivable Due from other governments 529,391 199002 961 Due from Board of Investments Current portion of notes receivable Prepaids Due from other funds Due from others Total current assets $ 88 265 S 448,037 $ 84,605 S 42513 S 361z010 Noncurrent asset Restricted cash Interfund receivable Loans receivable Deferred Assessments Rec. Total noncurrent assets 0 0 0 0 0 Total Assets 88,265 448,037 841,605 4_1513 361010 LIABILITIES Current Liabilitley._ Accounts Payable $ 41072 $ 139947 $ 181 $ 1339104 Accrued Payroll $ 1,552 Due to other funds S 46,469 Deferred Revenue 359874 129186 386 Other current liabilities 8,571 Total current liabilities $ 82.343 S 5 624 S 26,133 S 567 $ 141,675 Noncurrentillties: Deferred revenue - Loans Receivable Deferred Revenue -Deferred Assessments Rei Total Noncurrent Liabilities $ 0 $ 0 S 0 S 0 $ 0 Total Liabilities $ 82,343 $ 51624 $ 26,133 S- -- - 567 $ 141,675 FUND BALANCES Reserved foradvances Reserved for debt service Unreserved, reported in general fund Unreserved, reported in special revenue funds $ 5,922 S 4429413 S 589472 S 3,946 $ 219,335 Unreserved, reported in capital project funds Total Fund Balances S 5,922 $ 442 413 S 58 472 $ 3,946 S 219,335 Total Liabilities and Fund Balances $ 88,265 S 448,037 $ 84,605 S 4,513 S 361,010 72 . City of Kalispell, Montana Nonmajor Governmental Funds Combining Balance Sheet June 30, 2005 73 2540 2600 2882 2886 2887 2916 SPECIAL ]RBAN FORESTR' COURTYARD UDAG RURAL LOAN DRUG ENFORCE. ASSETS STREET MAINT. DISTRICT MAINTENANCE REVOLVING GRANT Cash and investments S 3741,136 $ 18,030 $- 439663 $ 19045,337 S 359487 S 79893 Taxes Receivable - net S 679040 S 71765 Current portion of interfund receivable Due from other governments 1519237 169681 1,729 Due from Board of Investments Current portion of notes receivable 99729 71780 Prepaids Due from other funds Due from others 818 Total current assets $ 592_1413 S 42,476 $ 43 663 $ 1,015,884 $ 43z367 $ %622 Noncurrent assets: Restricted cash InterFund receivable Loans receivable 201,629 1539654 Deferred Assessments Rec. Total noncurrent assets 0 0 0 201,629 ' .1539654 0 Total Assets 592,413 42,476 43,663 1,217 13 196 92 1 9.)622 LIA8ILITIES Currerrt Liabilities; Accounts Payable S I6,319 $ 434 S 17,643 Accrued Payroll S 49209 S 591 $ 19269 $ 580 Due to other funds Deferred Revenue 679040 79765 91729 7,780 Other current liabilities 3,454 Total current liabilities S 87 S S 7" $ 3,454 $ 28_1641 $ 7,780 S 580 Noncurrent Liabilities: Deferred revenue - Loans Receivable $ 201,629 $ 153,654 Deferred Revenue -Deferred Assessments Re Total Noncurrent Liabilities S 0 $ 0 $ 0 S 201,629 $ 153,654 $ 0 Total Liabilities $ 87:568 $ S 790 S 3,454 $ 230,270 $ 161 434 $ 580 �,UNU 8LANUS Reserved foradvances Reserved for debt service unreserved, re -ported in general fund Unreserved, reported In special revenue funds $ 5049845 $ 33,686 S 40409 $ 987,243 $ 351,487 $ 95,042 Unreserved, reported in capital project funds Total Fund Balances $ 504.845 $ 33,586 $ 40,209 $ 987,243 S 35,487 S 99042__ Total Liabilities and Fund Balances $ 592,413 $ 42,476 S 43,663 $ 11217 13 $ 1 %t921 S L622 73 City of Kalispell, Montana Nonmajor Governmental Funds Combining Balance Sheet June 30, 2005 74 SPECIAL 2917 2919 2940 2957 2975 REVENUE FUNDS UNIVERSAL COPS Ist Home FEMA GRANT ISTEA Total �4 S SE -S GRANT Grant Buyer rr Cash and investments S (4,478) $ 19,034 $ 9,244 S 18,223 $ 51021,455 Taxes Receivable - net 1589789 Current portion of interfund receivable - Due from other governments 6,250 1,000 30100 Due from Board of Investments - Current portion of notes receivable 1749 Prepaids ' Due from other funds - Due from others 818 Total current assets S 1,772 S 19 034 S 1 400 S 9404 S 18,223 S 5,500,371 Noncurrent aasg1i 4 Restricted cash 0 Interfund receivable 0 Loans receivable 3555,283 Deferred Assessments Rec. 0 Total noncurrent assets 0 0 0 0 0 3552283 Total Assets 1,772 19.034 1,000 9 44 18,223 5,855,554 LIABILIT1E5 Current Liabilltiesz Accounts Payable S 1,000 $ 223,475 Accrued Payroll $ 223 S 15,549 Due to other funds $ 469469 Deferred Revenue $ 1761298 Other current liabillbes _S _ _ ---- 12,075 _ Total current liabilities $ 223 S 0 $ 1,000 $ 0 S 0 $ 473,416 Noncurrent Liabilities: _ Deferred revenue - Loans Receivable $ 3559283 Deferred Revenue -Deferred Assessments Re $ - Total Noncurrent Liabilities $ 0 S 0 $ 0 $ 0 S 0 $ 355 283 Total Liabilities $ 223 $ - $ 1,040 S - S - S 828,699 Reserved foradvances Reserved for debt service $ ' Unreserved, reported in general fund $ - Unreserved, reported in special revenue funds $ 17549 S 19,034 S - S 9444 S 18,223 $ 51026,955 Unreserved, reported in capital project funds $ - Total Fund Balances S 1,549 S 19,434 $ - S 9,244 S 18 23 S 5,02!&955 Total Liabilities and Fund Balances S 1,772 $ 19,434 $ 1,040 S 9,244 S 18 23 $ 5,855,554 74 . City of Kalispell, Montana Nonmajor Govemrnental Funds Combining Balance Sheet June 30, 2005 75 3010 3188 3500 35% 3597 G.O. BOND WESTSIDE TIF SID REVOLVING 19% S & C 1987 S & C ASSETS SERIES 2002 SERIES 2000 Current Assets: Cash and investments $ 201 $ 64,259 Taxes Receivable - net $ 29,890 S 27,694 $ 59 Current portion of interfund receivable Due from other governments 48,357 62,515 63 S 50 Due from Board of Investments Current portion of notes receivable Prepaids Due from other funds 633 Due from others Total current assets S 78,448 $ 90,209 S 64,892 S 122 $ 50 [yoncuU&nt assets Restricted cash 1493,555 Interfund receivable Loans receivable Deferred Assessments Rec. S 500 Total noncurrent assets 0 149,555 0 0 500 Total Assets 78,448 239:764 64,892 122 550 LiARILm�� Current Liabilities: Accounts Payable Accrued Payroll Due to other funds $ 131,684 $ 84 $ 210 Deferred Revenue 299890 27694 59 Other current liabilities Total current liabilities Liabilities: $ 41.y574 $ 27,694 $ 0 S 143 S 210 Ngo&jUgnt Deferred revenue - Loans Receivable Deferred Revenue -Deferred Assessments Re $ 500 Total Noncurrent Liabilities $ 0 S 0 $ 0 S 0 $ S00 Total Liabilities $ 43,574 $ 27,694 S - S 143 S 710 Reserved foradvances Reserved for debt service S 34,874 $ 2129,070 S 64,892 S (21) $ (160) Unreserved, reported in general fund Unreserved, reported in special revenue funds Unreserved, reported in capital project funds Total Fund Balances S 34,874 S 212,070 S 64,892 S 21 $ Offl Total Liabilities and Fund Balances S 78,448 S 239,764 $ 64,892 S 122 $ 554 75 76 City of Kalispell, Montana Nonmajor Governmental Funds Combining Balance Sheet June 30, 2005 3598 3599 3600 3602 3603 ASSETS 1998 S & C 1999 S & C 2000 S& C 2002 S&C 2003 S&C Cash and investments Taxes Receivable - net S 98 Current portion of interfund receivable Due from other governments 287 135 Due from Board of Investments Current portion of notes receivable Prepaids Due from other funds Due from others Total current assets $ - S - S - S 287 S 233 b1oncurrent assets: _ Restricted cash Inter#und receivable Loans receivable Deferred Assessments Rec. $ 422 S 663 S 12158- 10,023 12,039 Total noncurrent assets 422 663 1,158 10 023 12 039 Total Assets 422 663 1,158 109,310 121-272 LIABILITIES Cu[Mnt Liabilities: Accounts Payable Accrued Payroll Due to other funds $ 216 $ 123 Deferred Revenue 98 Other current liabilities Total current liabilities $ 0 S 0 $ 0 $ 216 S 221 Noncurrent Liabillbes: Deferred revenue - Loans Receivable Deferred Revenue-Deferred Assessments Re S 422 S 663 S 1,158 S 10,023 $ 12,039 Total Noncurrent Liabilities $ 422 S 663 $ 1,158 $ 10,023 $ 12039 Total Liabilities S 422 S 663 $ 11158 $ 109239 $ 12,260 N Reserved foradvances Reserved for debt service $ 71 S 12 Unreserved, reported in general fund Unreserved, reported in special revenue funds Unreserved, reported in capital project funds Total Fund Balances $ - $ - $ - $ 71 $ 12 Total Liabilities and Fund Balances $ 422 $ 663 S 1,158 $ 10,310 $ 12.272 76 . City of Kalispell, Montana Nonmajor Govemmental Funds Combining Balance Sheet June 30, 2005 77 3604 3641 3642 DEBT SERVICE FLTN ASSETS 2004 S&C SID 341 SID 342 TOTAL Cash and investments $ 769812 $ 61856 $ 5,49+6 Taxes Receivable - net $ 289 $ 11,142 59,172 Current portion of interfund receivable 0 Due from other governments 660 686 112,753 Due from Board of Investments 0 Current portion of notes receivable 0 Prepaids 0 Due from other funds 633 Due from otters 0 Total current assets S bign,curreol assets: _ $ 7,805 Restricted cash S 149,555 lnterfurxi receivable 0 Loans receivable 0 Deferred Assessments Rec. 31,693 30 064 25_1437 111,999 Total noncurrent assets 31,693 30,064 25,437 261,554 Total Assets LIABILITIES 31,693 37,869 321V761 510,924 Cunnt LiabillUm Accounts Payable S _ Accrued Payroll 0 Due to other funds 14,317 Deferred Revenue S 289 $ 11,142 59,172 Other current liabilities 0 Total current liabilities Noncurre[Il Liabilities: $ 289 S 1,142 S 734" ui. innw - i i uiri nr•.rr.. Deferred revenue - Loans Receivable Deferred Revenue -Deferred Assessments Re $ 31,693 $ 30,064 $ 25 437 S 1111"9 Total Noncurrent Liabilities $ 31,593 S 30,064 S 25,437 $ m,999_ Total Liabilities $ 31,693 $ 34,353 S 26 79 $ 185,488 FUND BALANCES Reserved foradvances Reserved for debt service S 7416 $ 61182 $ 325,436 Unreserved, reported in general fund 0 Unreserved, reported in special revenue funds 0 Unreserved, reported in capital project funds 0 Total Fund Balances S - S 7,516 $ 6182 $ 325 436 Total Liabilities and Fund Balances $ 31.693 S 37,569 S 32,0761 $ 510,924 77 City of Kalispell, Montana Nonmajor Oovemmental Funds Combining Balance Sheet June 35, 2005 [L ■ TOTAL DS 4102 4150 4290 CAPITAL NONMAJOR POOL CONST. FIRE STATION S & C PROJECT FUNDS GOVERNMENTAL ASSETS CONST CONST. TOTAL FUNDS Current Assets: Cash and investments S 239986 S 2,8341445 $ (59715) $ 2,8529716 S 7,950,983 Taxes Receivable - net 21791 Current portion of interfund receivable - Due from other govemrnents 414,553 Due from Board of Investments - Current portion of notes receivable 179509 Prepaids - Due from other funds 633 Due from others 3,387 $ 3,387 4,205 Total current assets S 27L373 S 2,834,445 S �- ------ - (5971M $ 2.856103 S 8 605;844 Noncurrent assets:. Restricted cash 1491,555 Interfund receivable Loans receivable .355483 Deferred Assessments Rec. 111,999 Total noncurrent assets 0 0 0 616,837 Total Assets 27,373 2,834,445 (5J15) _ 2,856,103 9422,681 LIABILME§ Current Liabilities: Accounts Payable S 27,373 S 689,972 S 961345 S 3.199420 Accrued Payroll 15,549 Due to other funds 60,786 Deferred Revenue 2359470 Other current liabilities 12,025 Total current liabilities �S 27,373 S ^ 68,472 - $ - 0 S 96,345 $ 643150_ _ Noncurrent LiabifWz: Deferred revenue - Loans Receivable S 355483 Deferred Revenue -Deferred Assessments Rei 0 „1112999 Total Noncurrent Liabilities $ 0 $ 0 $ 0 S 0 $ 467482 Total Liabilities $ 27,373 S 68,972 $ - $ 96,345 $ 1,110,532 FUND BALA_NCgS_. Reserved foradvances Reserved for debt service 0 $ 325,436 Unreserved, reported in general fund 0 - Unreserved, reported in special revenue funds 0 5,026,955 Unreserved, reported in capital project funds $ 2,765,473 $ 5 715 $ 2,759,758 _ 2,759,758 Total Fund Balances S - S 2,765,473 S -X5,715} $ 2,759,758 5 _ _- - - _ w„8,112,149 - - Total Liabilities and Fund Balances $ 27 73 $ 2,534,445 S (5;: 15 $ 2.856,103 9,222,681-............... ........ [L ■ City of Kalispell, Montana Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2005 2170 2185 2158 - 2210 2215 Airport Airport TEF Westside TIF Parks In Um Aquatic Faciihy REVENUES: Total taxes and assessments Total licenses/permits Total intergovernmental Total charges for services Total miscellaneous Total investments TOTAL REVENUES EXPENDITURES: Total general government Total public safety $, 281,044 $ . 36 5,153 16,312 59,024 S SIA7 S 161,216 380 12450 S 28 562 S 34 z5A 17 S 36 $ 81 847 S 161t216 Total public works S 40,253 S 4,333 Total culture & recreation 225,5M Total community development 395 $ 30,645 Total debt service Total miscellaneous Capital Outlay 846,352 $ 45,3n TOTAL EXPENDITURES S 40,263 S 855 610 S 30,645 S 45t322 s 225 Excess revenue over (under) expenditures S (11,701) S (510 93) S [30 609 $ 36L25 s (64 22 Other financing sources (uses): Sale of land Proceeds of loin Operating transfers in 540,000 72,452 Operating transfers (out) $ Special Item Excess revenues and other sources over (under) expenditures and other uses $ 01 701 $ (510 93) $ 469,391 $ 28 66 S 8,140 Fund Balance July I, 2044 S 58,165 S 1,639,719 $ 926,255 S 33,643 $ (8,140) Prior Period Adj Fund Balance June 30, 2005 $ 46,464 $ 1,129,326' $ 1 95, 6 $ 66 $ 79 City of Kalispell, Montana Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2005 2W 2374 2372 2390 Comprehensive Retirement Permissive Health Insurance Health Levy REVENUES: Total taxes and assessments Total licenseslpern lts Total intergovernmental Total charges for services Total miscellaneous Total investments TOTAL REVENUES EXPENDITURES: Total general government S 338,044 2394 Building Code $ 346,945 136,171 3,936 $ _ S - S 338 444 S $ 487t002 Total public safety s 353,822 Total publk works Total culture & recreation Total community development Total debt service Total miscellaneous Capital outlay TOTAL EXPENDITURES S $ - - s - $ 3 022 Excess revenue over (under) expenditures S - S - S 338 044 S - $ 133 Other financing sources (uses): Sale of land Proceeds of loan Operating transfers in Operating transfers (out) (162,007) (131,285) (342,553) (211 on Special Item Excess revenues and other sources over -„ (under) expenditures and other uses $ 4162.00 S (131,285) S 44 1 r►09 $ 221,4 $ 13319M Fund Balance July 1, 2004 S 162,007 S 131,255 S 10,431 S 221,077 $ 305,433 Prior Period Adj Fund Balance June 30, 2405 $ - $ - s 4,922 S - S "2,413 City of Kalispell, Montana Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2005 240[) 2441 2420 2549 Light Decorative Gas Tax Street Maintenance Light Maint, Maintenance REVENUES: Total taxes and assessments Total Iicen se slpermits Total intergovernmental Total charges for services Total miscellaneous Total investments TOTAL REVENUES EXPENDITURES: Total general government Total public safety $ 340,857 171,0% 4,.228 2644 Urban Forestry $ 404 1,026,x.30 119,098 2 825 3 492 $ 171,046 $ 4,228 $ 303,682 S 1030 22 $ 1I9 49x Total public works s 148,427 $ 7,9779 S 373,196 $ 794,246 Total culture & recreation $ 114,115 Total community development Total debt service 70,35% Total miscellaneous Capital outlay 391870 17=M7 TOTAL EXPENDITURES S 148,427 $ 7 979 S 413:066 s 878,133 S 114,115 Excess revenue over (under) expenditures s 22,669 S (3,7-51)--$ (1 09 $ 15 189 S 5 Other financing sources (uses): Sale of land Proceeds of loan Operating transfers in Operating transfers (out) (22,721) Special Item Excess revenues and other sources over (under) expenditures and other uses S 22 669 S (3j.51) S (109,384) S 129,468 $ 5 Fund Balance July 1, 2004 Prior Period AdJ Fund Balance June 30, 2005 $ 35,803 $ 7,697 S 328,719 $ 375,377 $ 28,303 $ M,472 $ 3,945 $ 219,335 S 504,345 S 3316% City of Kalispell, Montana Nonma}or Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2005 2825 2882 2as6 2887 2916 2917 MACI Greet Courtyard UDAG Rural lAnn Dreg UnWerml Apartmeaft Revolving Enforcement Cops Grant REVENUES,: Total taxes and assessments Total licenses/permits Total intergovernmental Total charges for services Total miscellaneous Total investments TOTAL REVENUES EXPENDITURES: Total general government Grant $ 51,581 S 27,544. 146,585 63,759 36,488 10,497 516 351 S 24 lm $ 146,.85 $ 541 128 S 61,957 S 10,487 $ 51,591 S 27 SU4 Total public safety $ 59,130 S 54,579 Total public works Total culture & recreation Total community development S 40,731 $ 330,341 $ 165,000 Total debt service 24,14 Total miscellaneous Capital Outlay S 169 TOTAL EXPENDITURES $ 169,W $ 64,875 $ 330 ] S 1657.0W $ 69130 $ 54,679 Excess revenue over (under) expenditures S (22,7211 S (755) S (268,384) $ (154,513) S (17,549) S JL7179 Other financing sources (uses): Sale of land Proceeds of loan 90,0 Operating transfers in 22,721 100,004 S 24,060 $ W14 Operating transfers (out) Special Item Excess revenues and other sources over (under) expenditures and other uses $ S (75_) $ (268=11WI S 35 47 S 2,451 S 1,135 Fund Balance July 1, 2004 Prior Period Adj Fund Balance June 30, 2005 S 40,964 S 1,255,627 S 0$ 5,591 $ 414 S 4 $ 40,209 S 987,243 $ 35,487 $ 9 042 S 1,549 EXPENDITURES: City of Kalispell, Montana Nonmajor Governmental Total general. government Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Total public safety For the Year Ended June 30, 2005 s 18,156 2919 2927 2944 2957 2975 Special Revesae CUPS Grant MT. Cultural 2nd Avenue FEMA Grant ISTEA F� $ 1,3",M4 Arts Grant West Grout S TOTAL REVENUES: ; S 34"3 Total taxes and assessments $ 619,124 Total licenses/permits S $91,612 $ Total intergovernmental S 151850 $ 324,504 S 79,953 S 21,132 $ 8161926 Total charges for services $ K494 Total miscellaneous S 2,032,771 Total miscellaneous 1.7,.505 2,441 S 20,x42 Total investments 29 S 47,336 TOTAL REVENUES S 17,534 $ S 854 S 324=W S 82 34 S 21,132 S 31834,390 EXPENDITURES: Total general. government $ - Total public safety s 18,156 $ 494,987 Total public works $ 1,3",M4 Total culture & recreation S 5,850 S 34"3 Total community development $ 324,500 S $91,612 Total debt service $ K494 Total miscellaneous $ _ Capital Outlay 345 864 27,05 $ 109293" TOTAL EXPENDITURES $ S 5,850 $ 324 S MAIM $ 27 W5 $ 41697:426 Excess revenue over (under) expenditures S 17 r5QU $ 0 S - S (281 626) S (6 1473) S (903 Other financing sources (uses): Sale of land $ _ Proceeds of loan 279,944 $ 369,940 Operating transfers in $ 1,500 S 1,706 S 8,258 $ 754,951 Operating transfers (out) S (8871902) Special Item $ _ Excess revenues and other sources over (under) expenditures and other uses S 19,034 S 0 $ - $ (20 S J95 $„ (.W ,0722 _-I Fund Balance July I, 2004 $ 0 S 0 $ - $ 5,x24 S 16,43$ $ 5,593,032 Prior Period Adj S - Fund Balance June 30, 2005 $ 19,034 S 0 $ 0 $ 9,204 $ 1$ --S 5,026,955 m City of Kalispell, Montana Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2005 3014 3185 3500 3594 3595 G.C. BOND WESTSIDE SID 1994 S & C 1995 S & C PAUL TIF REVOLVING REVENUES: SERIES 2002 SERIES 2400 FUND Total taxes and assessments S 318,242 S 327,273 $ 155 Total l ice n s e slpe rmits Total Intergovernmental 71,935 Total charges for services 27,9 Total miscellaneous Total investments 3,35 5140 727 TOTAL REVENUES. $ 321 502 s 432,253 S 727 $ - S 155 EXPENDITURES: Total general government Total public safety Total public works Total culture & recreation Total community development Total debt service 29,725 �2,5fi Total miscellaneous Capital Outlay TOTAL EXPENDITURES S 2",725 S a sbs S 0 S $ Excess revenue over (under) expenditures S 30 877 $ 349 685 S 727 $ - $ lbs Other financing sources (uses): Sale of land Proceeds of loan Operating transfers in S 20,772 $ 1,153 S 921 Operating transfers (out) ON1000) (10,972) 11,153) Special item Excess revenues and other sources over (under) expenditures and other uses S 51 549 S 0 5 0,3 1. S (9,032) S 921 S (998 Fund Balance July 1, 2004 S (15,775) S 362,385 S 73,924 $ (921) S 998 Prior Period Adj Fund Balance June 30, 2005 S 34,874 S 212,070 S 54,892 S - S - City of Kalispell, Montana Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2005 3596 3597 3598 3599 3600 19965&C 19975&C 19985&C 19995&C 20005&C REVENUES: Total taxes and assessments S 1,613 $ 1,020 S 260 S 2% $ 427 Total l i ee n se slpe rmi to Total intergovernmental Total charges for services Total miscellaneous Total investments TOTAL REVENUES S 1 613 $ 1,020 $ 260 S 2% S 427 EXPENDITURES: Total general government Total public safety Total public works Total culture & recreation Total community development Total debt service 11540 663 260 2% 427 Total miscellaneous Capital Outlay TOTAL EXPENDITURES s 640 $ 663 S 260 $ 2% S 427 Excess revenue over (under) expenditures S (2 $ 357 S 0 $ 0 $ 0 Other financing sources (uses): Sale of land Proceeds of loan Operating transfers in Operating transfers (out) Special Item Excess revenues and other sources over (under) expenditures and other uses S (2D S 357 S _ S - $ Fund Balance July 1, 2004 $ 6 $ ('I; 17) S 0 S 0 $ 0 Prior Period Ad j Fund Balance June 34, 2005 $ (21) $ (1541 S - $ - S - City of Kalispell, Montana Nonmajor Govemmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2005 3601 3602 3603 3641 3642 DEBT 2001 S & C 2002 S & C 2003 S & C SID 341 SID 342 SERVICE FUN] REVENUES: _� TOTAL Total taxes and assessments S "7 S 2 66 2,557 S 8,546 $ 4,826 $ 669,0" Total licenses/permits $ - Total intergovernmental S 71,935 Total charges for services S 27,905 Total miscellaneous $ - Total investments S 9,227 , TOTAL REVENUES S "7 S 2,666 2, 15 57 S 8,646 S 4 926 $ 778,165_ EXPENDITURES: Total general government Total public safety S - Total public works $ - Total culture & recreation S - Total ,community development $ - Total debt service 907 2,167 2,545 7,125 7,W S 396,611 Total miscellaneous S - Capital Outlay TOTAL EXPENDITURES S W S 2,167 S 2 Sas S 7 125 S 7 $ 3.%:.611 Excess revenue over (under) expenditures $ 0 $ 699 S 12 $ 1 521 S 2462 $ 381,554 Other financing sources (uses): Sale of land s - Proceeds of loan $ - Operating transfers in S 22,856 Operating transfers (out) $ (512,085) Special Item $ - Excess revenues and other sources over (under) expenditures and other uses $ _ S 6" S 12 S 1 sn S 2 462 S (107,675] Fund Balance July 1, 2004 $ a $ (628) $ _ S 5,995 S 8,644 S 433,111 Prior Period Adj Fund Balance June 30, 2005 $ _ S 71 S 12 S 7,516 $ 6,182 $ 325,436 20 REVENUES: Total taxes and assessments Total licenses/permits Total intergovernmental Total charges for services Total miscellaneous Total investments TOTAL REVENUES City of Kalispell, Montana Nonmajor Covemmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2045 4150 4290 4102 Capital Project is FIRE Walk & Curb Pool Funds STATION Construction Const. CONST. TOTAL EXPENDITURES: Total general government Total public safety Total public works Total culture & recreation Total community development Total debt service Total miscellaneous Capital Outlay TOTAL EXPENDITURES Excess revenue over (under) expenditures Other financing sources (uses): Sale of land Proceeds of loan Operating transfers in Operating transfers (out) Special Item Excess revenues and other sources over (under) expenditures and other uses Fund Balance July 1, 2004 Prior Period Adj Fund Balance June 30, 2005 TOTAL NONMAJOR GOVERNMENTAL FUNDS $ 19,288,218 $ 346,895 $ 888,861 $ 290609676 S - $ 20,842 12,395 $ 12,395 $ 699 458 ............. .w , ... , ,...._..... r. rwr.r.r..rri i.rrr.w.r $ 12,395 0 $ 0 $ 12,395 $ 49674 0 34,278 $ 30,278 525,265 $ - 1068,444 S - 3459503 $ - 891,612 $ - 491,105 S - 0 262,528 30:611 127,829 S 4202968 . ]913,354 ....rrr.rrr.rr- $ 292,806 $ 30,611 S 127,829 $ 451,246 $ 5,535,283 $ (2807411) $ (30,611) S . (1272829) S(438:851). $ (860t.333 3,000,000 S 315,693 S 31031,693 S 3,4011,593 S $ 777,817 $ (2%7n) S (209772) S (11420,759) $ - S 2 719 589 S 12082 S I 4826LI 2,57 074 $ 128 318 $ 1419928 S (6,797) S 148,641 $ 283,732 S 6,309,875 $ (96,044) (963,014) $ (x69044) $ 2,765,473 $ (51715) $ - $ 2,759 758 $ 8.112,149 City of Kalispell, Montana SID 343 Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the year Ended June 30, 2005 Fund Balance July 1, 2004 $ 99,968 $ 99,968 Residual equity transfers Fund Balance June 30, 2005 $ 84,897 $ 99z268 $ 15 071 BUDGET ORIGINAL ACTUAL & FINAL VARIANCE REVENUE: Total taxes $ 146,232 $ 1829438 $ (36406) Total intergovernmental Total charges for services Total Rent Total investment TOTAL REVENUE $ 146 232 $ 182 438 $ (M9206) EXPENDITURES: S.I.D. bond principal $ 100,000 $ 1001,400 $ - S.I.D. bond interest 61,303 829,438 $ 21,135 Capital Outlay TOTAL $ 1617,303 $ 182_9438 $ 21 135 Excess revenues over (under) expenditures S 15 071 $ $ (15,1071) Other financing sources (uses): Special Item Excess revenues and other sources over (under) expenditures and other uses $ 15 071 $ - $ 15 071 Fund Balance July 1, 2004 $ 99,968 $ 99,968 Residual equity transfers Fund Balance June 30, 2005 $ 84,897 $ 99z268 $ 15 071 REVENUES: Total taxa Tout assessments Tota I liceo seslpermits Total intergovernmental Total charges for services Total misceltaneons . Total investments TOTAL REVENUES EXPENDITURES: Total general government Total publk safety Total public works Total culture & recrea don Total community development Total debt service Total miscellanees Capital Outlay TOTAL EX1PEND1TURES Excess revenue over (under) expenditures Other financing sources (asa); Sale of had Proceeds of loan Operating transfers in Operating transfers (out) Excess revenue and other sources over (under) expenditures Fund Balance July 1, 2004 Prior Period Adj Fuad Balance June 30,2W5 City of Kalispell, MWt9M NOMIajor Govwm*rrtal Funds Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ACkW For the Year Ended June 30, 2005 Wom W"# S (11,701) S 2179 11,709 $ (510,353) S (1,94932! S 2185 4"m- $ 69 690 S 1j:L6=1 S 56,165 S 2168 $ 8„63'3,719 S A! $ 9261255 Ahwrl TW 34.755 S 11,709-- S 1,129,326 S Westside TIF 5A933 S 1395,645 S Roft-et - fie# - Budget - ... Actual 0 �arlFiaal Varhnce ..,..... Actual OriginaMas! ..., Variance ....,_.. Actwd .., 2r giuYF'" Vat .1.1..11.. $ 281,00 $ 265,588 $ 15,549 S 36 S 200 S (164) S 5:153 $ 22,653 S (17.5") 16,312 $ 13,600 S 3,312 59,024 S 3610" S 9,924 $ - S - 12,239 $,9" $ 7,25 S 2.908 S _ (: )_ $ 28�62 S 18,000 S 1 UT%62 $ 345,217 S 3A153 S 7,06A $ 36 S 2,296 S (2,164) S 40,263 S 41,410 S 1,147 S 6,333 S 5!',..i" 5 42,167 3" 25,6" S 24,605 30,645 S 660,5" S 649,655 1,77 1 499 S 924,617 S 729 $ 720 S -- _40,263 S . - 41,414 --S - ..www - - 1,147 S 8551619 S 1,8451999 S 991,339 S 30,645 S -.n+.. . 1,400,3"S 1,374,135 ri i S [510,393) 5 (1r" 9,846 ..99Er4S3 , S „ „. (3016093S ("8,600) S 1,367,991^ S(11,701) S (23,418) $ 11,709 -- -- 459,320 (45!,520) Wom W"# S (11,701) S 23 41@ S 11,709 $ (510,353) S (1,94932! S 538,933 $ 4"m- $ 69 690 S 1j:L6=1 S 56,165 S A165 $ 8„63'3,719 S 1,6391719 $ 9261255 926,255 S 46,464 $ 34.755 S 11,709-- S 1,129,326 S 599,393 5 5A933 S 1395,645 S 27,655 S 1,367,991 :�'.1 R-5 City of Kalispell, Montana Nonmajoc Goverlynental Funds Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended June 34, 2W5 2210 2.215 2360 Parrs le Lies Aqustic Facility Com rebe"ve 7naraoce Budget - Brame# - Bodget - REVENUES: Actual ori inaE11'Ineal V"a" Actual CWWnall nal _ Variance � Actual OrIgiaainl Variaaee Total taxes S _ Total assessments Total Iicenseslpermits Total lntergoveramenbd S - Total charges for servfccs 81,467 S 74,165 $ 7,302 161,216 S 249,959 S (88,743) Total miscellaneous 33# 5" S (120) Total investments TOTAL REVENUES S $1,847 S 741565..5 _ __ 7,192 -S 161,216 S 249,959_- S- - --(88,743) S - S EXPENDITURES: Total general government Todd public safety Total public works Total culture & recreation $ - 225 38 241,S19 S 16,231 Total community development Total debt service Total miscellaneous S Capital Outlay 45,322 62,10 S ,..,._ 16,778 TOTAL EXPENDITURES S 45 22 S 62,100 S 1 778 S 225,538 S 241„319_- s $ _ Excess revenue over (under) expenditures ' S 36,52.1 S 17.,565 S- 23,960 S (64,322) S 5,140 S .472:4622- $ - S S - Other financing sources (encs): Sale of land Proceeds of baa Operating transfers in 72,462 72 Operating transfers (oat) [3,259) (8,723) 464 (162,407) (164,724) 2,717 Excess revenue and other sources over (under) expenditures $ 2811M S 3.342 $ 24,424 S 1148 $ 8,140 S - s (1b2,ft7) s (IK724) $ 27„17. Fuad Balance July 1, 2004 $ 3S,643 S 32,643 S (3,149) S (8,144) $ 162,80', %2,007 Prior Period Adj Fund Balance dune 30, 2405 S 66,909 S 42,485 S 24,424 S - S - S - S - S (2,717) $ 2,717 R-5 City of tispell, Montana Nonmajor Govwmw tat Funds Schedule of Revenues, Exper►ditures and Changes in Fund Balances - Budget and Actual For ft Year Ended .dune 30, 2005 237 Zan 2330 Retirement Permissive Health lzq Heald, Ba". Beset . Br�1Set . REVENUES: Actual Uri nail mal Variance - Acura! 0612sallFfisd Vartnace Actual Origisaffied Variaree Total taxes S - S 339,64/ S 346,00 S (7.9%) S - Total assessments Total lken ses/permits Total intergovernmental $ - $ . Total charges for services Total miscellaneous Total investments TOTAL REVENUES $ - S - S - �$ 338,914 $ 34,000 $ ( 1 S - S - S - EXPENDITURES: Total general government 0 0 9 Total public safety 0 Q 0 Total public works 0 0 0 Total culture & recreation 9 Total community development Total debt servke Total miscleem 0 Capital Outlay TOTAL EXPENDITURES $ - S S S - S - S _ S $ $ Excess revenue over (ander) expenditures S - $ S - S ..339,044 $ 346,8W S (7 S - S - $ Utter financing mrces (uses) Sak of land Proceeds of lawn Operating transfers in Operating transfers (out) (131,2::} (131,2:5) (342,553) (342,553) (221477) (222,27) 1,238 Excess revenue and other sources over (under) expenditures $ (131,295) S (131,285) $ - �S (4,50) _5 _ 3,447 S _ _ _ _ _ _ (7,956) S (22110-M-$ 22 S 11120 Fund Balance July 1, 20M $ 1311335 $ 131,295 $ 10,131 S 16,431 S 221,077 $ 221,077 Prior Period Adj Fuad Balance June 30, 2005 S - $ - S S 5,922 S 13,979 S (7,956) S S (11220) S 1,320 City of Kalispell, Montana Nonmajor Governnw al Fabs Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2005 92 2394 UN 2401 Buildin Code Light Maintenance Decorative Ligif# Mai#,. Had*". get - Bvdset - REVENUES: ., Actual OriginatfFlnal Varma Actual 06010all mal Variaott Annul D naVHza1 Vsris tt Total taxes Total assessments S - S - Totallicenseslpermits 3"A" 195,600 S 151,295 Total intergovernmental Total c0arges for services IX171 S 65,008 S (71,171) 171,0% $ 175,152 S 4,056 4=8 S 4,318 S 98 Total misceilaneons - Total investments 3,936 3,1W S (936) TOTAL REVENUES $ 4$7,002 S 263,600 $ 79,188 S 171,996 $ 175,152 S .,,._ 410% S- 4,22E 5 4,318 S 9v EXPENDITURES: Total general government Total public safety 353,022 336,367 [14,6551 Total public worm S 145,427 S 165,097 16,578 S 7,979 S 91294 1,221 Total culture & recreation Total commmaity development Total debt service Total miscellaneous Capital Oddaly TOTAL EXPENDITURES S 353,022 S 338A7 S (I4 $ 148,427 $ 165,097 S 11670 S 7 S &M S 1,221 Excess revenue over (under) expenditure# S 133,980 $ (74,767) S 64,533 $ 2 669 S 101055 S 20,726 S _ --.3'751), ,S f4de S 1,311 Other finaudeg sources (am): Sale of bad Proceeds of 1e Operating transfers In Operating transfers (oet) Excess revenue and other sources over (under) expenditures S 133,980 S (74,76Z? S 64 33 S 22,669 $ 19,055 S 28,726 S (1,751) S_ 2_ S !411 Fuad Balance July 1, 2OD4 $ 305,433 $ 348,43.3 $ 35,583 $ 35,"3 S 7,697 S 7,232 Prior Period Adj Fund Balance June 30,2W5 S 442,413 $ 233,666 $ 64,533 S 55,472 5 - 45,558 $ 20,726 S 3 3 2,3M S 1,311 92 REVENUES: Total taxes Total assessments Total Been seslpermits Total intergovernmental Total charges for services Total miscellaoefts Total investments TOTAL REVENUES EXPENDff URES: Total general government Total public safety Total public works Total culture & recreation Total com unity developmeiat Total debt service Total m menace xas Capital Outlay TOTAL EXPENDITURES Excess revenue over (ander) expenditures Other financing sources (tuesr Sae of hod Proceeds of loss Operating transfers In Operating transfers (out) Excess revenue And other sources over (under) expenditures Fund Balance July 19 2004 Prior Period Adj Fund Balance June 30, 2005 City of Kalispell, Montana Nonmajor God Funds Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended .lune 30, 2005 6 0 (2,2,721) (72,721) S (1 09 S 2420 3011,782 S 129,463 S 20 36 S 109,132 250 (3,378) S w, 8,75.1' . 2600 34719 S Gats Tax 341,375 S 26„383 $ Street Maintenante S 219,335 S Urban Forestay 101,782 S 504,845 S Brd3et _ S 33,686 S 24,933 S 9,753 Brd3et - Hadtet - Actual OrIgInaMnal Vatrinate Actual OrigisaVFinal Vxriapce Ae" ortrinammal Variance S 3NA57 S 3NA57 S - S 408 S 486 1,026" S 1,032,964 S (51234) 119„695 S 115,413 S 3,685 2,825 $ 1 $ 113.25_ _ 3,492 11580 $ .11992 S .303,682 $ 302,357 S 1,325. S 1,030Z!22 S l 033 $ (3 2 $ 119 4911 S 11 413 S j4W .... _ $ 37x,196 $ 413„523 S 48,377 $ 790,246 S ('13454 83,363 114,115 118,733 4,658 70,3.50 691976 (424) 39,576 S 100,00 S_ -- _. 130 . 17,537 69 745 S Fpll $ 413,066 S 513,523 $ 10.0S 878,133 S 1,013,228 S - --135__0!35 S 1141115 $ 118,753 Sj457 4z66a S 5,333 S (3,379) S 8=753 S 152;1" S 2 S 0r33b _-131,853 $ 149 S 211 166 $ 101,782 6 0 (2,2,721) (72,721) S (1 09 S 211 166 S 3011,782 S 129,463 S 20 36 S 109,132 $ 5,383 S (3,378) S w, 8,75.1' . S 34719 34719 S 37513" $ 341,375 S 26„383 $ 29M S 219,335 S 117M3 $ 101,782 S 504,845 S 36:,21.1.S 109,132 S 33,686 S 24,933 S 9,753 City of Kalispell, Montarla Non najor Government Funds Schedule of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual For the Year Ended June 30, 2005 M-` 2825 2U2 2M MAOI Grant Courtyard Apartments .,,. UDAG Brunet . Budget - Bud#" - REVENUES: Actual F uM Varianre - Actual Originaff nal Variance Actual Ori nM11 mal Variance Total taxes Total assessments Total licenses/perm ks Total intergovernmental S 146,M S 303,000 $ {156,415) Total charges for servka 53,759 S 65,960 S (1,231) X489 S *4U Total miscellaneous $ - 516 514 S - Total Investments 351 0 S 351 24,953 9,454 S___ ��469 TOTAL REVENUESS S 146 ,585 S 3v3 0M $ (1. 41 S l29 S 64,65,005.,_ [�� 0) S 61 957 S _ ......_...r ............. -, 10,049 51,"7 EXPENDITURES: Total general government Total public safety Total public works Total culture & recreation Total community developmeat 40,731 48,000 7,269 33@,341 359,765 29,424 Total debt service 24+144 A000 !�W Total uniscellaaeous Capital Outlay .,..169,3306 S 350,000 S „1",694 5 TOTAL EXPENDITURES S 169 $ 310,0(* S 1480 694 s 64,875 S 7 ova S 13125 S 330,441 S 359,765 S -;"24 Excess revenue over (under) expenditures $ [2 721 S (47 900) $ 24 9 S (7M)_$ (13,0001 S 12,245 .5 (263,394) S [349,756} 5 sal Other financing soarm (usa): Sale of land Proceeds of loan Operating tranoers In 22,721 47,090 (24") Operating transfers (oat) 0 Excess revenee and other sources over (under) expenditures S $ - $ - S (755 S (13,001_S I 45 S 268 $ (349,70) S 51 1 Fund Balance July 1, 2004 $ - 0 S 40,964 S 40,954 S 1455,627 $ 112551627 Prior Period Adj Fund Balance .lune 30, 2045 S - S - s - s 40,284 s 27,954 S 12,245 S 987,243 S 9051W_ _ s _ _ a1m1 M-` REVENUES: Total taxa Toted assessment: Total licenses/permits Total Intergovernmental Total charges for services Total miscellaneous Total investments TOTAL REVENUES EXPENDITURES: Total general government Total public safety Total public works Total culture & recreation Total community devek4 went Total debt service Total mbcdhnem Capital Outlay TOTAL EXPENDITURES Excess revenue over (under) expenditures Other finand®g sanrces (uses): Sale of bind Proceeds of kon Operating transfers is Operating transfers (out) Excess reyeeue and other sourres over (under) expenditures Fond Baksce July 1, 2@04 Prior Periods Ada Fund Balance June 30,2M City of i{9115pell, MO(ThM Nonnwcx Govelr> Wft Funds Schedule of Revenues, Expenditures and Changes In Fuad Balances - Budget and Ac kW For the Year Ended June 30, 2005 95 2887 2916 2917 Rural Loan Revotvi% Drug Enforcement Grant ...,,,,.r.._._ Universal Cepa Grunt Budget - Budget - Budget - Actual QriginaMnal Variaace Actual Ortginall mal .. Voris*" Ar" DrlgiaallFinul Varisset S 51,581 S 46,183 $ 5,3911 S 17,54! s 27.506 S - 18,#87 S 141487 - S 27 $ r S S Lai $ :!1193_ _ s 5,398_ 102487 S - - S 10,457 .,s 0,139 69,134 0 54,679 54,725 46 16510" 5241009 355,"0 46 - - i. •mw.■� S w. 54,679 S rirrr.rrwwrwr�� 541725 S S 69130 s 69 130 S - S lbs "0 $ 520,000 S 35100 „ 46 s (27,179) S (27,2.25} S $ 17 S (2 19471 $ 08; S (lP41 1) S (520,M S 9i3OM 3284004 100,0/0 28,04! 26,000 0 31,314 27,"0 1,314 S 1,135 $ S 1,30 S 35 487 S - S 365,487 S 451 $ S 5,398 S 6'"1 $ 6,"1 $ 414 5 414 $ -- 3� $ W.-_ - S 365,487 $ 9,042 S 3,644 S 513" $ 1 S 129 $ 1,30 95 City of Kalispell, Montanan Nonmajor Goverrlltwtsl Funds Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended June 34, 2005 2919 2M 294 CUPS Grant MT. Cultural Arts Grant tad Avenac West Gowt Bit . Beset - Beset _ REVENUES: ActtW Ur1glnallFiaal Variance ..... Actual Origiaaimaw Varimct .... Actual Origin Varhubce Total taxes Total assessments Total liceoses*rmhs Total intergovernmental S - S SAM S 18,754 $ (10") S. 324,M $ 32/,-M S - Total cdarges for services Total miscellaneous 17,M 15,"oS Totallevestmeutas 29 S 29 TOTAL REVENUES S 17,534 $ 15�BB@- S 2AM . s ., 5,M-- s 16,750 S . ,..0 01-W- s 324,50 S 324*0 $ EXPENDITURES: Total general government Total public safety 1 Total public worsts Total enlhrre & recreation 5A5e $ 18,754 $ 18190 Total community development 324,M 324,544 4 Total debt service Total udscellaneons Capital Outlay S - S TOTAL EXPENDITURES �S - $ 30,6"S 30,000 S S,sSo S l G,7 . 324,M S 324,50 S Excess revenue over (under) expenditures S 17,534 S (15,400) S 32534 _ $ - $ - S - S - $ - $ - Utter financing sources (am): Sale of land Proceeds of k" Operating transfers in 1150 1,Si4 Operating transfers (ort) Excess revenue and other sources over (Mader) expenditure: S 19,034 S13 S 3Z 34 S - S - S - $ Fund Bs►bnee July 1, 2844 $ - $ - $ - $ Prior Period Adj Fund Balance June 30,2M $ 19,934 S (13,5110) S 32,534_ S S - $ - $ - City of Kalispell, MWftM Nwwmjor Com Funds Schedule of Revenues, Expenditures arMd Changes in Fund Balances - Budget end Actum For the Year Ended June 30, 2005 97 257 2975 FEMA Gra*t LSTEA REVENUES: . B*dW- AetiW OriginaMow Voris o" A tmW �- VArtam" Total trues Total assessments Total livensWpermhS Total intergovernmental S 73,933 $ 379,198 S (293,245) S 21,132 S 6MW S (4.3AWS) Total charges for ser0ces Total miscellaneous 2441 13,M S (1015") Total investments TOTAL REVENUES s 94 S 391 193 S 308 884 S ...,_ 21,132 S so& S (43,363) EXPENDITURES: Total general governumt Total public safety 1 x,156 53,951 35,795 Total public works Total culture & rrcreadon Total community deveiopme nt Total debt service Total miueilarnemu Copital Outlay 345 e39 S .... 175 27,6ft 73,723 S 46111 TOTAL EXPENDITURES S 364 8" S 399 S 35azo S 27 6" S 7.3j.723 S 12 Excess revenue over (ander) expenditures $ 28162 $ 792 S 27 34 S 47 S 723 S Other flaaadag sources (ul sic Sak of bend Proceeds of baa 279,W 279066 Operating transfers In 1,7% 1,746 2,258 3,72.3 (465) Operating traasfers (out) Excess revenue sad other sources over (under) expenditures S (241 S 792 s 772 S 1,785 S S 1,755 Fund Balance July 112004 $ 41224 S 4,224 $ 16y m $ 16,435 Prior Period Adj Fund Balance .lune 30,205 $ 9,294 S _ _ 432 S 8,772_ S 13,22.3 S 16,433 S 1,785 97 REVENUES: Total taxes Total assessments Total licensesJpermits Total intergovernmental Total charges for services Total miscel1aneous- Total Investments TOTAL REVENUES EXPENDITURES: Total general government Total public safely Total public aortas Total culture & recreadoe Total community development Total debt service Total miscellaneous Capital Ouday TOTAL EXPENDITURES Excess revenue over tandem expenditures Other financing soarers {usesy: Salle of #tad Proceeds of loan Operating transfers in Operating transfers (out) Excess revenue and other sources over (under) ex penditu res Fund Balance July 1, 20M Prior Period Adj Fund Balance June 30, 2045 City of Kalispell, Montana NMnajor Funds Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Adue# For the Year Ended June 30, 2005 3010 296,725 3166 3566 2002G.O. BOND -POOL 2W WESTSIDE TIF SID RLrVOCVING FUND Bod6et - Badgd - Bodget - ArhW Origins!! *W Variaace TS AtmM ClriginaflF nd Variance AMM Orriginalfflod Varia6ce 316,242 S 312,640 S 51642 $ 327,273 S 261,652 S 65,621 2 96,725 S - S - S S - �.. ii i 71,935 S 71,918 S 17 27,96, S slim $ (23,363) 349,685 S M&M S . S - S 3,3616 S 5110 S 2,SGD ., _ 511411 S5=0" S - - (660} $ 727 $ TZ7 $ 371,502- S 313 100 S 8,542 ,... I I I I I IIIIIIIII IIIII IIIII II III. .I II IIIr.WI.WYi..i.1�Yl.�ri T S 432,53 S �..w�w1 - rr _ _ _ 398856 $ 41,395 S 721 $ - S 727 296,725 296,725 a 82,-W S 8215" S - 8 S 8 S - S S 290,725 S 2 96,725 S - S - S - �.. ii i 349,685 S M&M S 41,395 S 727 $ 30,8'71 S 22x375 S 6,22 S 727 $ - S f 26,772 26,772 1,163 3,725 (1.552) $ ("411"Q) S (SKM) 0 (14=) (I I, W) (78). 0W.15) S (191,710) $ 41,395-S (913) $ 51:649 S T S S 29,274 S (9,032) S (LZ'1S} S $ (16.,775) S (16,775) S 362,385 S 362,365 $ 73,974 S 73,924 S 34,874 S 500 S 29,Z74 $ 212,076 S 170,675 S 41,395 S 2 S K649 S 913 ti�03 City of Kalispell, Montana Nonmajor Govemmental Funds Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2DU5 sn 3M 35" 35% 1994 SIDEWALK & CURB 1995 SIDEWALK & CURB 1996 SIDEWALK & CURB B+adset - Bad=et - Ruft t - REVENUES: Actwd UriginaVFiwal Variance Actual OrildnaMeM Variance Act W _ Orkginal RaA _ Variance Total taxes Total assessments $ - 165 5 155 1,613 $ 1,739 $ (126) Total ficenseslpermits Total intergovernmental Total charges for services Total miscetl neons Total investments TOTAL REVENUES S - S - $ - S 165 $ - S 165 S 1,613 S 12M S 126 EXPENDITURES: Toihd general government Total public safety Total public works Total culture & recreation Total coanmutaity development Total debt service 0 1 1,739 Total miscelhnevus Capital Outlay TOTAL EXPENDITURES S - s - s - s $ - $ - S 1 s 1739 s 99 Excess revenue over (tinder) expenditures S - S - S - $ 165 S $ 165 S S $ Other financing sources (anew Sale of land Proceeds of kaan Opersatiatg transfers in 921 921 operating transfers (out) (922) (922) (1,163) (1,3) 60 Excess revenue and other sources over (ander) expendiftres S 921 $ (922) S _(1) $ ("a) S- (1IM) _S $05 S S - S Fund Balance July 1, 200 (921) S (921) 99a $ 6 S 6 Prior Period Adj Fuad Balance .lone 30, 2005 S - S (1,943) s (I S - s [ ? s ae5 s (21) $ 6S (27) sn 100 City of Kalispell, Montana Nonrnajcw Funds Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and AchW For the Year Ended June 30, 2006 3597 3"S 3599 1997 SIDEWALK & CURB 1498 SIDEWALK & CURB 1949 SIDEWALK & CURB Brdget - Budget - B*dget - REVEjliM: Actual Ori uaMnal Varia ce Actual GrWnalffinal Varner ActwM Uriouaff" Variamet Total taxes Total auessmnmts 1,020 S 1,263 $ (243) 2" S 360 S 0") 2% S 3% S (106) Total licence Total in tergoveramental Total charges for services Total miscellaneous Total investments TOTAL REVENUES $ 11020 S 1 63 $ 243 S 260 $ 3" $ 190 S 2% S 3% S (100) EXPENDITURES: Total general government Total public safety Total public work# Total culture & rerre We Total community develvpmeat Total debt service 663 1,763 600 260 360 1% 2% 3% 100 Total mbeellaneous Capital Outlay TOTAL EXPENDITURES $ 663 $ 1,263 S 699 S 250 S 360 S 100 S 2% S 3% S i00 Excess revenue over (under) expenditerei $ 357 S - $ 357 S - S - $ - S - S $ Other financing sources (uses): Sale of bkwd Proceeds of loan Operating transfers las Operating "lagers (out) Excess revenue and other sources over (under-) expenditures S 357 $ - $ 357 S - $ - $ - S S S Fuad Hahtoet July 1, 2404 (511 $ (517) S - $ - S - S - Prior Period Adj Fund Balance June 30, 2045 S 164 5 (51 S 337 S - $ - s - s $ 100 City of KaffspelJl. MMUM NmTwa r Governa rM Funds Schedule of Revenues, Expenditures and Changes to Fund EWanws Budget and MtW For the Year Ended June 30, 2005 101 3600 3691 3692 2000 SIDEWALK & CURB 2081 SIDEWALK & CURB 2002 SIDEWALK do CURB H�dget . Badgd - Budget - REVENUES:Acted ... ...... OriginaVl' health Variaacr-- - Aural Griona lF oM Veriame Artmxl 2UnaVFhud VarW" Total taxa Total assessments 427 S 527 S (1 0) 907 S 1,196 S 0") ZA" S 2,267 S 519 Total tieeesealpermits mental Total Intergovernmental Total charges for services Total miscellaneo u ToW investments TOTAL REVENUES $ 427 S 527 S 999 S 907 S 1,196 S _ (1")_ S 2,066 S 2.267' S 599 EXPENDITURES: Total general government Total public safety Total public uvula Total culture & recrea#ioe Total community deveiapmMt Total debt service 427 527 100 997 1,196 199 2,167 21267 190 Total miscellanem Capital outlay TOTAL EXPENDITURES S 427 S 527 S 100 S "7 S 1,196 S 199 S 2,167 S 2,267 S I!9 Excels revenue over (under) expenditure $ - S - S - S - S S - $ 699 $ - S 699 Other prancing sources (am): Sak of land Proceeds of loon operating ftwn urs In operating ft"ders (Out) Excess revenue and other sources over (under) expenditures S S - S - S S - $ - S 699 S S- 6999 Fund Balance July 1, 2004 S - $ - S - S - $ (US) S (62$) - Prior Period Ad j Fund Balance June 30, 2005 $ - S - S - S - $ - $ - S 71 $ ('as) S 699 101 City of Kalispell, Montana Nomnajor God Funds Schedule of Revenues, Expenditures and Changes in Fund Batances - Budget and ACWal For the Year Ended .lune 30, 2005 102 3603 3641 3642 2003 SIDEWALK & CURB SID 341 SID 342 Brdget - Budv# - Budget - REVENUES: Actual Qriolnu nal Varlwe Actud OriginalJFita►1 Variance Actual 0Ajdn&tThW Varimm Total taxes Total assessments $ 2,557 S 3,645 $ (1") 8,646 S 7,325 S 021 4,826 S 7,318 S (24562) Total lken seslpermits Total intergovenamentad Total charges for services Total miscellaneous Total investments TOTAL REVENUES S a 57 s -3:645 s 0 M $ 8,646 �$ 7,325 ._ S_ _ _P21 $ S Z=18 S M52L EXPENDITURES: Total general government Total public safety Total public works Total culture & recra6m Total community development Total debt service 2,545 3,645 1,106 7,124 7,325 20 7,281 7,3U 108 Total miscellaneous Capital Outisay TOTAL EXPENDITURES $ 2,545 S 3,645 S 1,100. S 7 625 $ 7,32x-_ S 290 $ 71M S 7 S 100 Excess revenue over (under) expenditures S 12 S - $ 12 $ 11521 $ - S 1,521 S (2,462) S ii iii - $ ilii miiniii,inini iirnnrr�rrrirrr {2tf62) urrw• Other financing som c (Wes): Sale of land Proceeds of ktian Operating transfers in Operating tranxl'ers (out) Excess revenue and other sources over (under) expenditures S 12 S S 12 S 1,521 S W- S 1,521 S 462 S - S 662 Fund Balance July 1, 2404 5 5 995 $ x,99x $ 8,644 $ $444 Prior Period Adj Fund Ballance .lune 30, 2045 S 12 S - S 12 $ 7,516 S 5,995 S 1,521 $ 61192 S 8,644 S (2,462) 102 City of Kalispell, Montana Nmnajor God Funds Scheduie of Revenues, Expenditures and Changes in Fund Balarcw - Budget and Actual For the Year Ended June 30. 2005 103 4102 4158 42" POOL CONSTRUCTION FIRE STATION CONSTRUCTION 2000 Walk & Comb Brdgo - B@KiBet - Bwhw - REVENUES• Actual OriginallFbW Variance Actual OrioinallFlaal Variante Actu id Origim3l aw Variance Total taxa Total assessmats Total lkenseslper its Total intergovernmental Total charges for servka Total m Uceiianeoas S 100,0 S { 1 Koo) Total investments 12,395 S 1,909 S 11,395 $ TOTAL REVENUES ...5 l2,395 $ 101,00 S ... _ (.88,60) s S - $ EXPENDITURES: Total general government Total public safety Total publk works Total cuttere & recradm Total community development Total debt service Total mW%4kneous capital Outlay lam, 127,829 S 149,601 $ 24,772 262,528 S 258 M S _ (17A28)30,611 100,00 $ 69 TOTAL EXPENDITURES S „127,829 S 148,601 S 2€1,772 S 292,806 S 2-%,099 S , t12ri28 $ 30,611 S 199199 S f9 Excess revenue over (under) expenditures $ (127,829) S (148 6B1) S 20,772 S (284,411} S (149,000) $ --j10ljIM) S (30,611) S 100 909 S 69 Other fluancing soe. (am): Sak of land Proceeds of lona Operating bmWers is 3GA" (30.0") 31,693 180,+90 (",-"7) Operating transfers (oat) S 120,772) (20,772) Excess revenue and other sources over (wader) expenditure S (1 x,601) S (148,501) _ $ _ _ S 2,719, (119, S (31,133) S Io $ 1,982 Fund Balance .idly 1, 2004 $ 148,191 S 11a,b01 S 141,M $ IK214 S (61797) $ . Prior Period Adj (9*"4) Fund Balance June 30, 2005 S - S - S - S 2,765.473 S (14x730 $ (131,133) S (5,715) S - S 1,002 103 SSS Current Assets: Cash Prepaid Expenses Total Current Assets CITY OF KALISPELL INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET ASSETS June 30, 2005 6030 6050 DATA EMPLOYEE PROCESSING HEALTH FUND TOTAL $ 81.9050 $ 37 $ 81,087 3,513 3 513 $ 85,363 $ 37 $ 859400 Capital Assets - depreciable, net _$ 11,764 $ 0 I A $ I1 764 PIIPI PI.I PPI. Total Noncurrent Assets $ 111,764 $ 0 11 764 TOTAL ASSETS $ 97,127 37 $ 97 164 LIABILITIES Current Liabilities: Accounts Payable $ 2,076 $ 37 $ 29113 Other $ 7x119 7 119 Subtotal current liabilities $ 2,076 $ 71156 $ 9,.232 TOTAL LL4ZILITES ' 2 076 $ 7,156 $ 91232 NET ASSETS: Invested in capital assets, net of related debt $ 11,764 Restricted Net Assets $ 0 Unrestricted Net Assets 83,287 119 76 168 TOTAL NET ASSETS 95,1051 $(71119)..$ 87 32 104 CITY OF KALISPELL INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN FUND NET ASSETS June 30, 2005 OPERATING REVENUES Intergovernmental Internal services Misc. TOTAL OPERATING REVENUES OPERATING EXPENSES Personal Services Supplies Purchased Services Fixed chgsJAdmin transf. Depreciation TOTAL OPERATING EXPENSES Operating Income NON-OPERATING REV.(EXP). Interest Revenue Total non-operating revenue(exp) NET INCOME Total Net Assets - beginning of year Restatements Total Net Assets - end of year DATA EMPLOYEE PROCESSING HEALTH TOTAL FUND FUND FUNDS $ 47,000 $ 475,000 $ 65,102 $ 21,492 $ 86,594 378 378 $ 112,480 $ 211492 $ 133,972 $ 0 $ 44,014 $ 44,014 229997 22,997 249,449 249449 40 993 40 3 $ 132,453 $ 0 $ 132,453. $ (19P73) $ 21_1492 $ 1 19 $ 868 $ 452, 1t320 �$ 868 $ 452- $ 1 20 $ (1.9,1.05) $ 21,944 $ 29839 $ 134434 $ (29,063) $ 105,171 $ (20,078) $ 952051 $ l 19 $ 87 932 105 STATISTICAL SECTION CITY OF KALISPELL INTERNAL SERVICE FUNDS - COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 3092005 DATA EMPLOYEE TOTAL PROCESSING HEALTH FUND Cash flows from Operating Activities: Cash received from Internal Services Cash payments to suppliers Net cash provided by operating activities Cash flows from Capital and related financing activates: Due to General Fund Acquisition of capital assets Net cash used for capital and related financing activites Cash flows from investing activities: Interest on Investments Net cash used in investing activities Net Increase in cash & cash equivalents Cash & cash equivalents at July 1, 2003 Cash & cash equivalents at June 30, 2004 Reconciliation of operating income to net cash provided by operating activities: Operating Income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Change in assets & liabilities: Increase in Accounts payable Decrease in Estmated Liability Total Adjustments Net cash provided by operating activities $ 21,9622 $ 38,280 $ 59 2 Disclosure of accounting pocky: For parposes of the Statement of Cash Flows, the Internal Service Funds ronsider all hely Noid investments (including restricted assets) with a maturity of three months or less when purchased to be cw& equivalests. 106 $64,349 $1 459 033 S - 1 523 82 $ 64 49 $ 1,459 033 $ (11523,38;1 $ (37,630) - ... _... .. -i $ - (37 630} ..._..-- $ i 37,630 $ i ii i.i.rrr.rmnnnnunnrr - $ r.rrrirnnnnn.nn� L37,630) $ - $ - $ $ $ (101,979) $ 71,356 $ (19459,033) $ 112,245 $ (19561,012) 183,601 $ (30,623 1, (12]46,78n $ "77241 411 $ $ (19,973) $ 40,993 602 $ 21,492 16,1788 $ $ ],51.9 401993 602 16 788 $ 41 595 $ 16,788 $ 58t383 Net cash provided by operating activities $ 21,9622 $ 38,280 $ 59 2 Disclosure of accounting pocky: For parposes of the Statement of Cash Flows, the Internal Service Funds ronsider all hely Noid investments (including restricted assets) with a maturity of three months or less when purchased to be cw& equivalests. 106 CITY OF KA.LISPELL, MONTANA Miscellaneous Statistics (unaudited) Class of City - Date of organization County Form of Government Number of employees (non -elected) Seasonal employees Elected Mayor, 8 Council persons, Municipal Judge Population of the City - estimated Land area Registered Voters: City Services: 1 st 1892 Flathead Council/ Manager 157.5 100+ 10 17,381 2600 acres active 8,387 inactive 1 996 10,383 Police protection Fire Department, Ambulance Service and Building Inspection Parks & Recreation Community Development Public Works -Streets, Water, Sewer, Wastwater Treatment, Storm Sewer General Administration -City Manager, Attorney, Finance, City Clerk, Municipal Court Number of building permits issued Miles of Streets & Alleys Municipal Water/Sever: Number of consumers Average daily water consumption (millions) Miles of water main Miles of sewer main Miles of storm main Water rate per 1,400 gallons $ 1.83 Sewer rate per 1,000 gallons $ 3.62 Irrigation per 1,000 gallons $ 1.16 Customer service costs $3.00 each per billing period. 107 536 110 7,289 2.4 85 101 36 (increase to $2.01 July 1, 2045) (increase to $4.02 July 1, Zoos) (ancrease to $1.28 July 1, 2045) CITY OF K.ALISPELL, MONTANA General Revenues by Source Last Ten Fiscal Years (unaudited) Fiscal licenses Intergovern- Charges Fines and Investment year Taxes and fees mental for services Forfeitures Earnings Miscellaneous Total 1996 $ 4,0349791 $ 391,017 S 2,3937810 $ 755,221 $ 3489075 $ 5819219 $ 29,245 $ 895337378 1997 $ 5,4249233 $ 333,434 $ 1,987,629 $ 878,404 $ 395,299 $ 594,974 $ 61,031 $ 916751,0(]4 1998 $ 51,241,477 $ 393,785 $ 2,0565,588 $ 790,766 $ 41204 $ 311221,635 $ 96,048 $ 12,1131,993 1999 $ 51267,252 $ 3621190 $ 31,315,493 $ 901,911 $ 351,973 $ 447,284 $ 102,494 $ 109708,597 2000 $ 51050,429 $ 459,656 $ 31471,032 $ 863,632 $ 379,517 $ 393,118 $ 1491,289 $ 1093261,673 2001 $ 49429,943 $ 5221,917 $ 3,7325,442 $ 9899851 $ 3911,665 $ 713,357 $ 1579,551 $ 105,937,726 2042 $ 4,920,674 $ 340,099 $ 412949120 $ 11106,812 $ 3999861 $ 672,551 $ 134,291 $ 119868,408 2003 $ 49,936,790 $ 610,299 $ 4,150,234 $ 842,377 $ 4539,892 $ 9099,145 $ 5499,155 $ 121,411,892 2004 $ 59509,021 $ 426,713 $ 4,135,311 $ 19003,640 $ 4439646 $ 1,1621252 $ 6959778 $ 135,3769361 2045 $ 42929,980 $ 4639152 $ 3,9227452- $ 2,8989718 $ 535,875 $ 3309746 $ 1329327 $ 131,212,850 Component units were excluded to comply with GASB reporting requirements. 1998 investment earnings included repayment of the LOAG loan from Kalispell Center Mall. Sources: FY 1996-2005 data from the City's Comprehensive Annual Financial Report, Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 108 CITY OF KALI SPELL, MONTANA General Governmental Expenditures by Function Last Ten Fiscal Years (unaudited) Component units were excluded to comply with GASB reporting requirements. Sources: FY 1996-2005 data from the City's Comprehensive Annual Financial Report, Statement of Revenues, Expenditum, and Changes in Fund Balances - Govenunental Funds 109 Legislative, Administrative Public Parks Housing & Fiscal and support Safety Public Works Recreation & Community Capital Debt year services Culture Development Outlay Service Total 1996 $ 190799757 $ 29783,321 $ 1,4.43,993 $ 534,465 $ 790,054 $ 198381,574 $ 397,242 $ 8,8271406 1997 $ 11,1259218 $ 2,893,442 $ 19725,340 $ 510,819 $ 652,296 $ 11,3285286 $ 4829448 $ 89717,409 1998 $ 1,194,016 $ 2,9401163 $ 197239852 $ 589,984 $ 870,940 $ 31682,896 $ 372,954 $ 11,3741801 1999 $ 13,208,880 $ 3,1161875 $ 11501,822 $ 6601,359 $ 1,795,463 $ 278291,146 $ 406,509 $ 11,5195054 2004 $ 1,2231,943 $ 3,342,327 $ 193985926 $ 723,360 $ 29019,148 $ 4,3701624 $ 499,804 $ 139578,132 2001 $ 11,2539352 $ 39422,810 $ 1,6999238 $ 862,953 $ 19583,421 $ 773,633 $ 7181,962 $ 10,3149369 2002 $ 115211,457 $ 31739,192 $ 2,6399936 $ 1,073,442 $ 19539,580 $ 191951,946 $ 9309689 $ 12,640,-242 2003 $ 19519,186 $ 4,7801182 $ 11443,451 $ 9889015 $ 1,1239497 $ 31394,947 $ 9861,612 $ 149235,890 2004 $ 1,6581495 $ 51150,657 $ 195159246 $ 19071,506 $ 768,038 $ 41342,922 $ 23,2139388 $ 1697209252 2405 $ 1,525,644 $ 5,6041169 $ 1,791,913 $ 1,236,972 $ 1,109,542 $ 21051,190 $ 700,182 $ 14,019,608 Component units were excluded to comply with GASB reporting requirements. Sources: FY 1996-2005 data from the City's Comprehensive Annual Financial Report, Statement of Revenues, Expenditum, and Changes in Fund Balances - Govenunental Funds 109 CITY OF KALISPELL, MONTANA Consolidated Tax Rates -Mill Levies Last Ten years (unaudited) 110 SD75 State School Flathead Valley Consolidated City Fiscal City of High School Elementary Equaliztion Community County County TOTAL year K al i s 11 Levy Le Levies College Le Health MILLS 1996 108.000 50.884 112.500 136.29 10.360 75.898 4.150 498.478 1997 116.160 55.090 -116.330 136.19 10.200 82.132 4.150 520.252 1998 116.160 54.600 120.020 133.33 10.040 74.978 3.862 512.990 1999 111.160 61.720 126.33 133.95 10.410 78.793 1.561 523.924 2000 114.250 66.430 133.74 137.62 11.010 80.922 4.402 548.374 2001 122.000 67.500 124:760 138.630 11.924 84.224 4.652 553.686 2002 129.420 78.040 149.840 140.880 12.030 89.973 4.652 604.835 2403 152.600 80.350 152.440 142.890 11.760 94.115 4.930 638.685 2044 144.650 80.000 153.120 148.420 11.570 96.120 5.090 638.970 ;rig_:.-Y�=_ ___ _-_-__ _- -- 2005 == =__ 1 77.8 0 147. 310 146.760 11.140 103.040 5.000 646.460 Source: Montana Tax Foundation General Fund 130 G.D. Bond 12 Permissive Health Levy 13 110 Notes: FY2003 includes 12 mills for Health insurance premium increases authorized by the legislature. An additional 12 mills was approved by the voters for the construction of an aquatics facility. The Downtown Urban Renewal District ended in FY2002. The two remaining districts are the Westside and the Airport Districts. 111 CITY OF KALISPELL, MONTANA Assessed Value of Taxable Property Last Ten Fiscal Years (unaudited) Urban Renewal Fiscal districts City taxable value # mills dollars year Market Value °/o ch CPl Taxable Value Tax Increment without increment 1 mill levied_generated 1996 $ 5299775,663 6.0% 3.00% $ 23,738,155 $ 3,514,011 $ 20,224,154 $ 201224 108.00 $ 2,184,192 1997 $ 551,112,670 3.9% 2.30% $ 24,433,839 $ 3,634,332 $ 20,799,507 $ 20,799 116.15 $ 2,416,012 1998 $ 576,856,663 4.5% 1.40% $ 25,376,049 $ 3,902,752 $ 21,473,297 $ 21,473 116.16 $ 2,494,304 1999 $ 588,649,254 2.0% 1.70% $ 25,500,927 $ 4,330,212 $ 21,170,715 $ 21,170 111.16 $ 2,353,257 2000 $ 574,721,869 -2.4% 2.60% $ 24,932,008 $ 3,593,853 $ 21,338,155 $ 21,338 114.25 $ 2,437,867 2001 $ 592,339,335 3.0% 3.00% $ 23,087,996 $ 11934,202 $ 21,153,794 $ 219153 122.00 $ 2,580,666 2002 $ 622,610,785 4.9% 2.40% $ 23,411,193 $ 2,059,458 $ 21,351,734 $ 21,351 129.42 $ 2,783,246 2003 $ 678,031,534 8.2% 2.80% $ 24,412,901 $ 754,554 $ 23,658,347 $ 23,654 152.6 $ 3,609,600 2004 $ 743,576,508 8.8% 2.80%. $ 25,270,432 $ 817,184 $ 24,453,248 $ 24,453 144.55 $ 3,537,126 2005 $ 818,605,572 9.2% 1.60% $ 27,839,549 $ 925,426 $ 26,914,123 $ 26,914 155 $4,1 71,689 Notes: FY2003 includes 12 mills for Health insurance premium increases authorized by the legislature. An additional 12 mills was approved by the voters for the construction of an aquatics facility. The Downtown Urban Renewal District ended in FY2002. The two remaining districts are the Westside and the Airport Districts. 111