2003 Comprehensive Annual Financial Report 3/31 - 12/31/2003 (2) Spokane
.,,.Valley
11707 E Sprague Ave Suite 106 • Spokane Valley WA 99206
509.921.1000 • Fax: 509.921.1008 • cityhall @spokanevalley.org
September 24, 2004
Kelly E. Rueff
State Auditor's Office
221 N. Wall Street
Spokane, WA 99201
Dear Ms. Rueff, 3
We are providing this letter in connection with your audit' f the financial statements of
the City of Spokane Valley for the period March 31, 200 through December 31, 20,94
for the purpose of expressing an opinion as to whether a financial statements pres 'nt
fairly, in all material respects, the financial position, results of the operations, and cash
flows of the City of Spokane Valley in conformity with accounting principles general
accepted in the United States of America. We confirm that we are responsible for the fair
presentation in the financial statements of financial position, results of operations, and
/ cash flows in conformity with accounting principles generally accepted in the United
/ States of America.
Certain representations in this letter are described as being limited to matters that are
material. Items are considered material, regardless of size, if they involve an omission or
misstatement of accounting information that, in the light of surrounding circumstances,
make it probable that the judgment of a reasonable person relying on the information
would be changed or influenced by the omission or misstatement.
We confirm, to the best of our knowledge and belief, the following representations made
to you during your audit.
1. The financial statements referred to above are fairly presented in conformity with
accounting principles generally accepted in the United States of America.
2. We are responsible for complying with applicable state and local laws and
regulations.
3. We have identified and disclosed all laws and regulations that have a direct and
material effect on the determination of financial statement amounts.
4. We have made available to you all:
a. Financial records and related data.
b. Minutes of the meetings of the City Council or summaries of actions of
recent meetings for which minutes have not yet been prepared.
5. There have been no communications from regulatory agencies concerning
noncompliance with, or deficiencies in, financial reporting practices that could
have a material effect on the financial statements.
6. There are no material transactions that have not been properly recorded in the
accounting records underlying the financial statements.
7. We believe there are no uncorrected misstatements that would be material
individually and in the aggregate to the financial statements taken as a whole.
8. We acknowledge our responsibility for the design and implementation of
programs and controls to prevent and detect fraud.
9. We have no knowledge of any fraud or suspected fraud affecting the entity
involving:
a. Management,
b. Employees who have significant roles in internal control, or
c. Others where the fraud could have a material effect on the financial statements.
10. We have no knowledge of any allegations of fraud or suspected fraud affecting
the entity received in communications from employees, former employees,
analysts, regulators, short sellers, or others.
11. The following have been properly recorded or disclosed in the financial
statements:
a. Transactions between funds.
b. Arrangements with financial institutions involving compensating balances
or other arrangements involving restrictions on cash balances and line-of-
credit or similar arrangements.
c. Related-party transactions, including sales, purchases, loans, transfers, leasing
arrangements, and guarantees, and amounts receivable from or payable to related
parties.
d. Guarantees, whether written or oral, under which the City of Spokane
Valley is contingently liable.
12. There are no violations or possible violation of laws or regulations whose effects
should be considered for disclosure in the financial statements or as a basis for
recording a loss contingency.
13. We are not aware of any impending or threatened litigation, claims or
assessments, or unasserted claims or assessments that are required to be accrued
or disclosed in the financial statements in accordance with FAS-5.
14. The City of Spokane Valley has satisfactory title to all owned assets, and there are
no liens or encumbrances on such assets, nor has any asset been pledged.
15. We have complied with all aspects of contractual agreements that would have a
material effect on the financial statements in the event of noncompliance.
16. We have no plans or intentions that may materially affect the carrying value or
classification of assets and liabilities.
17. We have received no communication from the Internal Revenue Service (IRS)
adversely affecting the tax exempt status of our outstanding debt or noncompliance
with arbitrage rules.
18. No events have occurred subsequent to the fiscal year end date that would require
adjustment to, or disclosure in, the financial statements.
David Mercier Ken Thompson
City Manager Finance
13. We are not aware of any impending or threatened litigation, claims or
assessments, or unasserted claims or assessments that are required to be accrued
or disclosed in the financial statements in accordance with FAS-5.
14. The City of Spokane Valley has satisfactory title to all owned assets, and there are
no liens or encumbrances on such assets, nor has any asset been pledged.
15. We have complied with all aspects of contractual agreements that would have a
material effect on the financial statements in the event of noncompliance.
16. We have no plans or intentions that may materially affect the carrying value or
classification of assets and liabilities.
17. We have received no communication from the Internal Revenue Service (IRS)
adversely affecting the tax exempt status of our outstanding debt or noncompliance
with arbitrage rules.
David Mercier Ken Thompson
City Manager Finance
City of Spokane Valley
Balance Sheet
Governmental Funds
December 31,2003
001 101 102 105 301 302 303 304 305 Total
General Street Arterial Hotel/Motel Capital Special Cap Street Capital Mirabeau Street Bond Governmental
Fund Fund Street Fund Fund Projects Fund Projects Fund Projects Fund Point Project Capital Projects Funds
Assets:
Cash,cash equivalents and
pooled investments $ 15,482 $ 2,130,419 $ 320,925 $ 231,314 $ 576,652 $ 503,206 $ 588 $ 6,882,317 $ 2,445,058 $ 13,105,961
Receivables(net)
Taxes 1,511,956 458,216 44,613 23,045 55,895 55,894 - - 2,149,619
Accounts 121,463 - - - - - - 121,463
Due from other funds 729 828,216 - - - 79,000 - - 907,945
Interfund loan receivable - 2,890,000 - - - - 2,890,000
Total assets $ 1,649,630 $ 6,306,851 $ 365,538 $ 254,359 $ 632,547 $ 559,100 $ 79,588 $ 6,882,317 $ 2,445,058 $ 19,174,988
Liabilities and fund balances:
Liabilities:
Accounts payable 211,835 226,052 32,532 - - 79,558 5,492 - 555,469
Taxes payable 388 - - - - - - - - 388
Due to other funds 830,961 659,022 79,000 - - - - - - 1,568,983
Interfund loan payable 2,890,000 - - - - - - 2,890,000
Bonds&deposits payable 86,700 - - - - - 86,700
Other accrued liabilities 64,975 4,644 - - - - - - 69,619
Other current liabilities 2,167 3,349 - - - - - - 5,516
Deferred revenues - 362,799 - - - - - - 362,799
Total Liabilities 4,087,026 1,255,866 79,000 32,532 - - 79,558 5,492 - 5,539,474
Fund Balances:
Reserved for:
Noncurrent receivables
Unreserved,reported in:
General Fund
Special Revenue
Capital Projects
Total fund balances
2,890,000 - - - - - - - 2,890,000
(2,437,396) - - - - - - (2,437,396)
2,160,985 286,538 221,827 - - - - - 2,669,350
- - - 632,547 559,100 30 6,876,825 2,445,058 10,513,560
(2,437,396) 5,050,985 286,538 221,827 632,547 559,100 30 6,876,825 2,445,058 13,635,514
Total liabilities&fund balances $ 1,649,630 $ 6,306,851 $ 365,538 $ 254,359 $ 632,547 $ 559,100 $ 79,588 $ 6,882,317 $ 2,445,058 $ 19,174,988
City of Spokane Valley
Statement of Revenues,Expenditures,and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31,2003
001 101 102 105 301 302 303 304 305 Total
General Street Arterial Hotel/Motel Capital Special Cap. Street Capital Mirabeau Street Bond Governmental
Fund Fund Street Fund Fund Projects Fund Projects Fund Projects Fund Point Project Capital Projects ' Funds
Revenues:
Taxes $ 9,258,661 $ 6,633,165 $ - $ 257,143 $ 668,895 $ 668,895 $ - $ $ - $ 17,486,759
Licenses and permits 1,088,165 - - - - - - - 1,088,165
Intergovernmental revenues 706,443 966,581 451,941 - - - - - 2,124,965
Charges for services 477,342 - - - - - - - - 477,342
Fines and forfeitures 533,496 - - - - - - - - 533,496
Miscellaneous 23,079 31,222 146 109 206 205 - 14,140 4,003 73,110
Total revenues 12,087,186 7,630,968 452,087 257,252 669,101 669,100 - 14,140 4,003 21,783,837
Expenditures: '
Current:
General government 2,836,998 - - - - - - 31,180 6,519 2,874,697
Public safety 7,394,857 - - - - - - - - 7,394,857
Physical environment 817,532 - - - - - - - 817,532
Transportation - 1,484,775 - - - 17,109 - 1,501,884
Economic environment 722,116 - - 35,425 - - - - 757,541
Mental and physical health 8,858 - - - - - - 8,858
Culture and recreation 879,047 - - - - - - - 879,047
Debt Service:
Principal - - - - - - - - -
Interest 34,891 - - - - - - - 34,891
Bond issuance costs - - - - - - - 84,528 24,491 109,019
Capital Outlay 475 225 49,610 - - - 294,964 103,863 - 923,662
Total expenditures 13,169,524 1,534,385 - 35,425 - 312,073 219,571 31,010 15,301,988
Excess(deficiency)of revenue
over(under)expenditures (1,082,338) 6,096,583 452,087 221,827 669,101 669,100 (312,073) (205,431) (27,007) 6,481,849
Other financing sources(uses):
Transfers in - - - - - - 312,103 - 312,103
Transfers out - (959,000) (165,549) (36,554) (110,000) - - - (1,271,103)
Long-term debt issued - - - - - 7,000,000 2,430,000 9,430,000
Premium on long-term debt - - - - 131,847 59,638 191,485
Discount on long-term debt - - - (49,591) (17,573) (67,164)
Total other financing sources(uses - (959,000) (165,549) - (36,554) (110,000) 312,103 7,082,256 2,472,065 8,595,321
Net change in fund balance (1,082,338) 5,137,583 286,538 221,827 632,547 559,100 30 6,876,825 2,445,058 15,077,170
Fund balance-beginning (1,355,058) (86 598) (1,441,656)
Fund balance-ending $ (2,437,396) $ 5,050,985 $ 286,538 $ 221,827 $ 632,547 $ 559,100 $ 30 $ 6,876,825 $ 2,445,058 $ 13,635,514