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CAFR FY1985KODIAK ISLAND BOROUGH Kodiak, Alaska Comprehensive Annual Financial Report �OF- Vear F "- GC June 30, 1985 TABLE OF CONTENTS SECTION 1 Borough Officials Boards and Committees Letter of Transmittal Page i ii Exhibit n"—M ~ w Accountants' Report 1 Combined Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups 3 A Combined Statement of Revenues, Expenditures, Other Financial Sources (Uses) and Changes in Fund Balances - Governmental Fund Types 6 B Combined Statement of Revenues, Expenditures, Other Financial Sources (Uses) and Changes in Fund Balances - Budget and Actual - �wwwN l F\•� A Spec"' Dwfw Nw Fun .� d T } _ "undo 6: Giava Wald, VlI �,rViQi �V•GI�YG 1 %"A%{J Gilt/ V L 6iw �GI � 2 iL�i r WA%AV A 1 w V Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Type - Enterprise Funds 8 D Statement of Changes in Financial Position - Proprietary Fund Type - Enterprise Funds 9 E Statement of Changes in Assets and Liabilities - Fiduciary Fund Type - Student Activities Fund 11 F Notes to Combined Financial Statements 12 Schedule Combining, Individual Fund and Account Group Financial Statements: Governmental Fund Types: General Fund: Balance Sheet 27 1 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual 28 2 Statement of Expenditures and Transfers - Budget and Actual 30 3 Special Revenue Funds: Combining Balance Sheet 37 4 Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances 38 5 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance (Deficit) - Budget and Actual: Land Sales 39 6 Borough /City Joint Census 40 7 2 TABLE OF CONTENTS Page Schedule Fire and Road Service Districts: Fire: Area 1 41 8 Bells Flats 42 9 Road: Monashka Bay 43 10 District 1 44 11 Bells Flats 45 12 Federal and State Grant Programs: Federal Revenue Sharing 46 13 Mental Health Center 48 14 Energy 49 15 Day Care 50 16 Education 51 17 Buildings and Grounds 52 18 Debt Service Funds: Combining Balance Sheet 53 19 Combining Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances 54 20 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual: Hospital Bond 55 21 School Bonds 56 22 Other Debt Service 57 23 Capital Projects Funds: Combining Balance Sheet 58 24 Combining Statement of Revenues, Expenditures, Other Financial Sources and Changes in Fund Balances 50 25 Proprietary Fund Type - Enterprise Funds: Combining Balance Sheet 60 26 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 61 27 Combining Statement of Changes in Financial Position 62 28 Water and Sewer: Balance Sheet 63 29 Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual 64 30 Statement of Changes in Financial Position 66 31 3 TABLE OF CONTENTS Page Schedule Hospital: Balance Sheet 67 32 Statement of Revenues, Expenses and Changes in Fund Equity 68 33 Statement of Changes in Financial Position 69 34 Fiduciary Fund Type - Student Activities Fund - Statement of ' Revenues, Expenditures and Due to Student Organizations 70 35 General Fixed Assets Account Group: Statement of General Fixed Assets by Source 71 36 Statement of General Fixed Assets by Function and Activity 72 37 Statement of Changes in General Fixed Assets by Function and Activity 73 38 General Long -term Debt Account Group - Statement of General Long -term Debt 74 39 SECTION 3 Table Statistical Tables: General Governmental Expenditures by Function 75 1 General Revenues by Source 76 2 Property Tax Levies and Collections 77 3 Assessed and Estimated Actual Value of Taxable Property 78 4 Ten Largest Taxpayers 79 5 Ratio of Net General Bonded Debt 80 6 Computation of Direct and Overlapping Debt 81 7 Computation of Legal Debt Margin 82 8 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 83 9 Demographic Statistics 84 10 Salaries and Surety Bonds of Principal Officials 85 11 Summary of Debt Service Requirements to Maturity 86 12 General Obligation Hospital Bonds, Series 1967 87 12a General Obligation Elementary School Building, Series 1967 88 12b General Obligation Refunding Bonds, Series 1974A 89 12c General Obligation School Refunding Bonds, Series 1974B 0 12d General Obligation School Extension and Improvement Bonds, Series 1980A 91 12e General Obligation School Improvement Bonds, Series 1984A 92 12f General Obligation School Improvement Bonds, Series 1985B 93 12g General Obligation Refunding Bonds, Series 1974 95 12h Miscellaneous Statistical Data 96 13 BOROUGH OFFICIALS Kodiak Island Borough Ann Barker Eric Blankenburg Frances Cater Edward F. Naughton Ray Camardella Charles E. "Bud" Cassidy David C. Crowe Pamela Delys - Baglien Linda L. Freed James Gingerich Wayne D. Haerer Jamin, Ebell, Bolger, Gentry Shirley "Micki" Miller Perry L. Page Jerome M. Selby Earl A. Smith Noreen Thompson Bryce S. Weeks BOROUGH ASSEMBLY Mayor, Thomas H. Peterson Donnell Rounsaville Deputy Mayor, Dave Wakefield Lorne "Lonnie" White BOROUGH MANAGER Jerome M. Selby Facilities Coordinator Resource Management Officer Borough Engineer Mental Health Director Planning Director Hospital Administrator Assessor /Appraiser (Contracted Firm) Borough Attorney Borough Clerk Data Processing Manager Personnel Officer /Purchasing Agent Fire Chief Superintendent, School District Finance Director /Treasurer i KODIAK ISLAND BOROUGH Kodiak, Alaska Boards and Committees Year ended June 30, 1985 Hospital Advisory Board (7) Ben Ardinger # Wilton White Gretchen Saupe Andy Cristaldi Tom Miller Dr. Brad Bringgold Ann Barker Mental Health Center Adv Board (9) Vickie Hester Maureen H. Eberhardt Lonnie White Josefina Barber Barbara Popken Mike Doloh Jane Nuttall Guy Powell William C. Hogan Monashka Bay Road Service District Advisory Board (5) Rob Missal * Bill Swearingin Roger Blackett Shawn Dillon Paul Stubbe Fire Protection Area #1 Advisory Board 6) Scott Arndt Bill Swearingin Horace Simmons William T. Wever Barbara Swearingin Earl Smith, Fire Chief Kodiak Sanitary Landfill Committee (8) Lt. Gary Perry Norman Wooten David Crowe * Phil Anderson Jim Ramaglia Herman Beukers Fred Patterson Eric Blankenburg Personnel Advisory Board (5) * Lorna Arndt Kay Baker Laura Ibach Marlys Buzby Marcus Hepburn Citizens Board of Equalization (5) Wayne A. Stevens * Jack Mann Joan Hughes Lou Iani Sid Cozart Jim Ashford, Alternate Kyle Taylor, Alternate Rick Brush, Alternate Parks and Recreation Committee (12) Deborah L. Burgy Jeffrey J. Hamer Pat Szabo Craig Johnson Dorothy Holm Ann Barker Ian Fulp Judy Fulp Ed Apperson Mike Anderson Anne D. Frederick Robin Parker Planning and Zoning Commission (7) Michael W. Anderson Dan James Tim Hill Steve Rennell Ken Gregg Marlin Knight Fred Patterson Data Processing Steering Committee (5) Perry L. Page Jerome M. Selby Joyce Healey Mary Jo Simmons David Wakefield ii KODIAK ISLAND BOROUGH Kodiak, Alaska Board and Committees Outer Continental Shelf Service District No. 1 Advisory Council (17) Advisory Board (7) Alvin Burch Ed Van Fleet Duke Delgado Patricia Szabo Lt. Gary Perry Baine Cater Reed Oswalt Norman D. Wooten Jeffrey Stephan Scott Arndt Wayne Coleman Jim Poulos Kyle Taylor Okey Chandler Robert Burgy Dave Woodruff Bells Flats /Russian Creek Road * Hank Pennington and Fire Service District Mark Buckley Advisory Board (7) Timothy Ward William G. Williams Jeff Allen Ed Gondek Linda Freed, Planning Director James Cobis Vacant (3) Vincent Reyes Mike Green _ Kodiak Island Transportation Melvin W. Kortlever Study Steering Committee James L. Rippey (KITS) (6) Tom Peterson Building Code Board of Appeals (7) John Pugh Robin Heinrichs David Wakefield Chuck Winegarden Al Cratty Arthur Bors Jerome Selby Reed Oswalt Sam Gesko, Jr. Cliff Ford Janet George Bill Beatty Wayne Coleman Auditorium Committee (14) Ginny Shank Architectural Review Board (10) Gardner Howes Robin Heinrichs Frances Cater Chuck Winegarden Ed Westlund Bill Beaty Wilton White * Wayne Coleman Marion Soule Arthur Bors Scott Arndt Reed Oswalt Louise Collins Dennis Murray Emory Welch Donnell Rounsaville Gary Stevens John Witteveen Nancy Freeman Jerome Selby Dr. Bob Johnson Dennis Nelson Judy Fulp *Indicates chair ii -2 a Q Kodiak IslandBorough 710 MILL BAY ROAD KODIAK, ALASKA 99615.6340 j PHONE (907) 486 -5736 ol r-7 November 21, 1985 To the Honorable Mayor Borough Manager and Borough Assembly Kodiak Island Borough Kodiak, Alaska The Annual Financial Report of the Kodiak Tsia d Borough (nLiough.) Koii Alaska, for the fiscal year ended June 30, 1985 is submitted herewith. ACCOUNTING SYSTEM AND REPORTS The Borough's accounting records for general government operations are main- tained on a modified - accrual basis, with the most important revenues being recorded when earned and expenditures being recorded when incurred. Account- ing records for the Borough's utilities and other enterprise funds are main- tained on a full - accrual basis. This report has been structured and compiled along the guidelines laid down by the National Council on Governmental Accounting (NCGA). During this fiscal year we have completed the conversion process from an IBM /34 to an IBM /38 System. This has been a slow and laborious process that has taken from December 1983 to date. Some applications continue to need refinements or enhancements to equal the late December 1983 level of efficiency. This has substantially slowed our progress for the enhancements desired to bring us to the level of accounting and reporting that we strive for. The same high- quality results will be realized but more than one fiscal period later than originally envisioned. The Government Finance Officers Association of the United States and Canada (GFOA) awards a Certificate of Conformance in financial reporting to those governments that meet their high standards of financial accounting and reporting. Copies of this report will be submitted to that body for their critical review. iii GENERAL GOVERNMENTAL FUNCTIONS Only the General Fund of the Kodiak Island Borough is considered in the following explanation of general governmental functions. Revenues for general governmental functions totaled $4,753,889, a decrease of 5.1% over 1984. Transfers in intragovernmental revenues contributed the greatest decreases. General property taxes produced 39.3% of general revenues compared with 36.8% in 1984. The amount of revenues from various sources and the increase or decrease over last year are shown in the following tabulation: Revenue source and other financing sources Property taxes Sales and use taxes Other taxes Licenses and permits Intragovernmental revenue Charges for services Fines and forfeitures Miscellaneous Transfers from others Amount Percent Increase over (thousands) of total 1984 (thousands) $ 1,868 39.4% $ 25 40 .8 (5) 2,364 49.7 (178) 74 1.5 21 $ 441 Public safety - 408 8.6 4 195 - ( $ 4 754 100�.0% $ ( Assessed valuation of $406 million represented an increase of 2.78% over the preceding year. The assessed value at January 1, 1985 relating to the fiscal year 1985 is $394.6 million, a slight decrease. As part of the statistical section of this report there is reported the tax collection experience for the immediate past ten years. It may be interesting to note that the rate of delinquency remains extremely low. Expenditures and transfers for general governmental purposes totaled $4,913,578, an increase of 3.99% over 1984. In fiscal year 1984, large amounts were transferred to the debt service and capital projects funds. Increases in levels of expenditures for major general fund functions of the Borough over the preceding year are shown in the following tabulation: iii -2 Amount Percent Increase over Function (thousands) of total 1984 (thousands) General government $ 1,467 29.9% $ 441 Public safety - - - Public works 195 3.9 (213) Health and sanitation 492 10.0 (218) Education 1,428 29.1 (51) Conservation and development 17 .3 (136) Transfers to other funds 1,315 26.8 129 $ 4 100.% $ (48) iii -2 The fund balance of the general fund has periodically undergone a critical review in recent years. Planned drawdowns have been budgeted and executed by tax reduction and transfers to other funds to keep the fund balance adequate and reasonable. As a result of these actions, the following table reflects fund balance at the close of the fiscal years ending June 30: 1979 $ 1,567,925 1980 2,035,245 1981 3,293,670 1982 5,478,183 1983 2,684,707 1984 2,742,239 CAPITAL IMPROVEMENTS FUND This fund has shown considerable growth in recent years which closely parallels that of the population increase and their desire for expanded facilities and services. Recent projects of considerable magnitude were: Kodiak Old Main /Auditorium Junior High Renovation Kodiak Main Elementary Kodiak High School Akhiok School Karluk School Chiniak School Kodiak East PE Building Significant current projects in progress are: Utility Improvements Solid Waste Facility School Asbestos Abatement Selief Lane Extension Areawide Road Projects School Maintenance Shop Hospital Design and Development Work Akhiok Dock Access Road Village Projects $ 10,500,000 8,156,056 7,201,0 5,383,000 2,234,200 2,126,900 1,991,000 1,435,300 $ 13,359,800 2,960,000 2,750,000 2,149,000 1,452,180 1,000,000 1,000,000 560,000 300,000 The revenues to support the above projects were provided by a variety of sources, the most significant being school bonds of $29 million. These bonds were issued in three increments of $12.1 million in August 1980, $7.4 million in June 198 and $9.5 million in May 1985. Equally important, but of a lesser concern to the average citizen, are the many millions of dollars from the State of Alaska for various capital projects. All of the current utility projects, plus many other capital projects, are fully funded by the State. iii -3 LAND SALES FUND The Borough has some 56,000 acres of land in various stages of reversion from the Federal government to the State to the Borough and ultimately to sale to individuals. Ten land sales have previously been held in the past and another is tenatively planned for the Fall of 1986. During the past year, the position of resource manager was authorized and has been filled by Mr. Cassidy. This individual will work closely with the finance department in identifying all available lands for sale and establishing such land sales. DATA SERVICES In September 1983 an IBM System /38 was purchased and installed by the Kodiak Island Borough to replace its existing IBM System /34. Existing IBM /38 configuration: 5381 CPU 2MB 3370 Storage 2MB 3411 Magnetic Tape Unit 3262 Printer 5225 Printer (2) 5256 Printer (uig�i School) 5218 Printer (Clerk) 5251 Display Station (7) 5291 Display Station (4) 5291 PC /Display Station (4) 5292 PC /Display Station (2) 5224 Printer (Shipping /Receiving) Several IBM PCs were purchased and are used in a dual purpose, as a stand- alone computer and as a terminal connected to the IBM System /38. A UPS (uninterruptable power supply) was purchased and installed to provide backup electrical power in case power is lost. This will ensure that there are no problems with the computer hardware or with the data files due to loss of power. Data services equally serve the Borough departments and the Kodiak Island Borough School District. Existing applications: Borou Payroll Utility Billing System Financial Accounting System Property Tax Land Sale Labels - Letters Text Management School District Maintenance System Financial System Payroll System Fixed Assets Inventory School Reporting System iii -4 Future applications: Borou Data Processing Job New Fixed Assets System Assessor's Appraisal System School District Preventive Maintenance Integrated Financial System The Data Processing Department is now staffed with three positions; a manager, a programmer and an operator. GENERAL FIXED ASSETS The general fixed assets of the Borough are those fixed assets used in the performance of general governmental functions and exclude the fixed assets of utility and other enterprise funds. Depreciation is not recognized in the Borough's accounting system other than in the enterprise and intragovernmental service funds. The accountability for fixed facilitated by the use of the records are maintained on the system in the future. DEBT SERVICE FUND assets of the Borough has been greatly computer programs. Currently, all fixed asset IBM PC and will become part of the integrated This fund was established to finance and account for the payment of principal and interest on all general obligation debt other than that which is payable exclusively from special assessments and revenue debt issued for and serviced by a governmental enterprise. DEBT ADMINISTRATION The statutes of the State of Alaska and the Code of the Kodiak Island Borough do not establish a legal debt margin. Our debt capacity is determined by a vote of the electorate and ultimately by the marketplace when debt is attempted to be placed. The Borough's general obligation bonds are rated as follows: Moody' s Standard Investors Service and Poors General obligation bonds BAA -1 BBB General obligation refunding bonds BAA -1 AAA iii -5 FEDERAL REVENUE SHARING By virtue of the Federal General Revenue Sharing Act under Public Law 92 -512, as amended by Public Law 94 -1488, the Borough receives approximately $30,900 each fiscal quarter. Revenue sharing funds continue to be used for Health, Education and Welfare. The Kodiak Island Borough holds two public hearings annually in this regard to solicit input from citizens (especially senior citizens) for planned use of these funds. INSURANCE - RISK MANAGEMENT Risk management is a term used to describe all management activities directed toward the control of risks. The methods used to establish this control are: • Identification of risks 0 Measurement of risks • Elimination of or control of risks • Self- assumption of certain risks through formal funding • Transferring risks through the purchase of insurance Insurance premium costs are no longer a minor expenditure item for the Borough. In recent years, insurance premium Costs -have rise's past the $125,000 line. A year by year comparison is somewhat meaningless, without study, as some years' records include refunds of unearned premiums of years past while others do not, etc. I believe it suffices to say that we are talking big dollars. The Assembly and staff are currently working on identification of risks as an ongoing item so that appropriate management action may be taken to minimize costs where possible. CASH MANAGEMENT AND INVESTMENTS Cash management is a strong point of your current treasurer. Moneys, naturally, cannot be invested until received. As simple as this is, few in government stress this point. It was only a few years ago that several years of unpaid taxes was not the exception. The forms were not prepared and submitted promptly for drawdowns on state grants and other receivables were handled in a like manner. All accounts of the Borough are now relatively current and proper monitoring procedures are in place for timely receipt of any amounts due. All funds are promptly deposited and any idle funds are invested on the following day. iii -6 The Kodiak Island Borough has large sums of idle cash on a daily basis. This is not to say that the Borough assesses and collects more tax that it needs or floats bond issues when not necessary or things of that nature. It is to say that due to the size and complexity of government that it is necessary to have adequate funding in place to accomplish the assigned tasks. The borough treasurer acts as the central treasury for all Borough and school district moneys. A cash pool concept is maintained whereas all funds are self - balancing unique entities and each fund has its own cash account which may on occasion show a "book overdraft" while others have an excess of cash. In this manner, the Borough is able to fully invest all idle funds without creating a "bank overdraft." The borough investment policy is far more restrictive than many governments. The parameters in which we operate are as defined in Title 3, Chapter 4, of the Borough Code. Basically, it states we invest only in high grade securi- ties that are fully collateralized. Further, the collateral is to be held by a third party bank. INVESTMENT EARNINGS During the year, the amount of idle public funds available for investment ranged from a low of approximately $18 million to slightly over $25 million. Interest yields realized on the investments we had placed ranged from a low of 6.5% for overnights (repurchase agreements) to a high of 12.75%. We closed out the year with investment earnings of $2,674,074. INDEPENDENT AUDIT The Borough Code requires an annual audit to be made of the books of account, financial records, and transactions of all administrative departments of the Borough by a certified public accountant selected by the Borough Assembly. This requirement has been complied with and the auditor's opinion has been included in this report. PROSPECTS FOR FISCAL YEAR 1986 The Assembly of the Kodiak Island Borough has again adopted a balanced budget for fiscal year 1986. This has been our policy for several years. In recent years we have adopted and executed a budget that is balanced by drawing down on the fund balance, in particular, the general fund. In this manner, the Borough continues to have the resources available to do the tasks assigned without an unusually high fund balance at year -end. iii -7 This has resulted in holding the line and, in most cases, reducing the amount of property tax assessment needed. Starting in 1981 and continuing have been our efforts to collect those taxes and other receivables due to the Borough promptly, thus negating the need to assess and collect additional from those who pay promptly. At fiscal year -end, uncollected taxes of all prior years were only some $30,000 as contrasted to over a million dollars in 1981. Tentative plans are being formalized to ask the electorate to approve the issue of some school improvement general obligation bonds. Since this is in the preliminary work stage, the exact amount is unknown at this time. This borough, like some other boroughs, is desirous of providing now for fu- ture debt service reimbursement from the state under current law which is up to 80 %. It does not appear to be inconceivable that this level of reimburse- ment from the state could be lowered in future legislative sessions. Other plans for bonding are also in their infancy. The state has granted the borough $1 million for design and development of a new hospital. Revenue bonds may be necessary to meet the funding requirements for this project. Ideally, the necessary funds will come through another capital grant from the state or a combination of grant and revenue bond proceeds. Contrary to the political rhetoric of the recent election, the economy of Kodiak remains very strong. We have finished a good fishing season and the prospaet3 for the Sa..Ttiter of 1 -988 are projected to be equally as healthy. Unfunded pension liabilities represent one of the most significant financial problems that face many cities and counties of America today. Your Borough staff, being acutely aware of this, has initiated legislation that has been adopted by the Assembly to preclude this from being a problem that we will face in the future. All unfunded past service costs of both the Borough and school district pension funds have been fully liquidated. ACKNOWLEDGEMENTS I wish to express my appreciation to all the members of the finance department for their efficient and dedicated service during the past year. A special thanks to those of our accounting and data processing staff who worked long and hard developing a modern on -line computerized financial system. I also thank your office and the members of the Borough Assembly for their interest and support in planning and conducting the financial operations of the Borough in a responsible and progressive manner. Respectfully submitted, Bryce S. Weeks Director of Finance iii -8 PEAT Peat, Marwick, Mitchell & Co. Certified Public Accountants Fm3MARWICK Alaska Mutual Bank Building 601 West Fifth Avenue, Suite 700 Anchorage, Alaska 99501 907 - 276 -7401 The Honorable Mayor and Borough Assembly Kodiak Island Borough: We have examined the combined financial statements of the Kodiak Island Borough (Borough) as of and for the year ended June 30, 1985 (Exhibits A through F), as listed in the table of contents. Except as explained in the following paragraph, our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered neces- sary in the circumstances. The financial statements of the Kodiak Island Borough Hospital, a component unit of the Kodiak Island Borough, have been examined by other independent auditors; insofar as our opinion on the com- bined, combining, individual fund and account group financial statements relates to data included for the Kodiak Island Borough Hospital, it is based solely on their report. The statements of the Kodiak Island Borough Hospital show assets and revenues that comprise 32% and 94 %, respectively, of the Pro- prietary Fund Type Enterprise Funds. The Borough's records of general fixed assets are incomplete in that we have not been able to determine the value for land owned by the Borough, the cost of certain buildings and equipment, and the sources of the related investment in the general fixed assets. The Borough General Fund and Proprietary Fund Type Enterprise Funds each con- tains a $1,000,000 receivable from the Lion Capital Group Chapter 11 Bank- ruptcy Trustee. It is not possible to determine what portion, if any, of these receivables will be collected. The accompanying combined financial statements do not contain any provision for uncollectible amounts, if any, related to these amounts. The fund balance of the General Fund and the retained earnings (deficit) of the Proprietary Fund Type have each been restricted for this receivable. In our opinion, that portion of Exhibit A and note 8 of the combined financial statements relating to the General Fixed Assets Account Group does not present fairly the general fixed assets of the Kodiak Island Borough at June 30, 1985. In our opinion, subject to the effects on the combined financial statements of such adjustments, if any, as might have been required had the outcome of the uncertainties discussed in the second preceding paragraph been known, the aforementioned remaining portions of the combined financial statements present -1- The Honorable Mayor and Borough Assembly Kodiak Island Borough fairly the financial position of such funds and account group of the Kodiak Island Borough at June 30, 1985, and the results of operations and changes in fund equities of such funds, and changes in financial position of the Proprie- tary Fund Type for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination was made for the purpose of forming an opinion on the combined financial statements taken as a whole. The combining, individual fund and account group financial statements (Schedules 1 through 39), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the combined financial statements of the Kodiak Island Borough. The information in Schedules 1 through 35 and Schedule 39 has been subjected to the auditing procedures applied in the examination of the com- bined financial statements and, in our opinion, subject to the effects, if any, on Schedules 1 through 3 and 26 through 31 as might have been determined ,o to neuczsary had the outcome of the uncertainties discussed in the third paragraph been known, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. The information in Sche- dules 36 through 38 does not present fairly the General Fixed Assets Account Group for the reasons stated in paragraph two. Statistical tables and data listed in the "Statistical Tables" of the accom- panying table of contents were not audited by us and, accordingly, we do not express an opinion on them. September 6, 1985, except for note 14, which is as of November 26, 1985 -2- Exhibit A BODIAK ISLAND BOFOUGN 7 Combined Balance Sheet - All Fund Types and Account Groups June 30, 1985 with comparative totals for 1984 Fiduciary Account Groups Governmental Fund Types Proprietary Fund Type - General General Special Debt Capital Fund Type - Student Fixed Long -term Totals (memorandum only) Assets General Revenue Service Projects Enterprise Activities Assets Debt 1985 19 Current assets: Equities in central treasury t - 3,041,116 68,575 837,690 93,952 - - - 4,041,333 3,218,219 Temporary investments 4,750,000 2,240,384 4,300,000 7,623,132 - - - - 18,913,516 21,279,777 Other cash balances 1,723 148,673 2,758,652 - - 75,680 - - 2,984,728 2,910,542 Investment in deferred compensation plan 133,716 - - - - - - - 133,716 - Reeeivables: State of Alaska 390,756 439,797 - 29,042 - - - - 859,595 1,522,741 Federal government - 30,947 - - - - - - 30,947 55,036 Property taxes, net of allowance for uncol- leetibles of $20,000 in 1985 and $22,777 in 1984 1,668,649 - - - - - - - 1,668,649 1,613,301 Land sales contracts, due within one year - 227,307 - - - - - - 227,307 187,276 Other 33,988 131,278 83,840 155,942 1,088,043 718 - - 1,493,809 1,531,413 Due from other funds - 160,933 - 215,758 - - - - 376,691 275,787 Inventories - 221,486 - - 105,547 - - - 327,033 234,912 Prepaid expenses - - - - 21,501 - - - 21,501 11,417 Restricted assets: Equity in central treasury - - - - - - - - - 30,907 Time certificates of deposit - - - - 1,997,787 - - - 1,997,787 1,000,000 Accrued interest receivable - - - - 52,951 - - - 52,951 12,500 Receivable from Lion Capital Group Chapter 11 Bankruptcy Trustee - - - - 1,000,000 - - - 1,000,000 1,000,000 Land sales contracts receiv- able, due after one year - 2,407,539 - - - - - - 2,407,539 2,203,724 Receivable from Lion Capital Group Chapter 11 Bankruptcy Trustee 1,000,000 - - - - - - - 1,000,000 1,000,000 Long -term receivable from Lutheran Hospitals and Homes Society - - - - 885 - - - 885,000 900,000 Amount available to service long -term debt in Debt Service Funds - - - - - - - 7,120,565 7,120,565 6,300,296 Amount to be provided to service long -term debt - - - - - - - 18,751,194 18,751,194 23,724,704 Fixed assets in service - - - - 8,335,408 - 61,295,835 - 69,631,243 37,487,749 Accumulated depreciation - - - - (1,660,802) - - - (1,660,802) (1,433,208) Construction work in progress - - - _ - 5,623, - .7,456,790 - 13,080,449 15,629,144 i 7,978,832 9,049,460 7,211,067 8,1161,564 17,543. 76,398 68,752,625 25,871,759 145,344,751 120,696,237 (Continued) -3- 2 Exhibit A, Cont. KODIAK ISLAND BOO -OUGH Combined Balance Sheet - All Fund Types and Account Groups, Continued (Continued) Fiduciary Account Groups Governmental Fund Types Proprietary Fund Type - General General Special Debt Capital Fund Type - Student Fixed Long -term Totals (memorandum only) Liabilities and Fund Equities General Revenue Service Projects Enter rise Activities Assets Debt 19 5 IgBq Liabilities: Current liabilities: Accrued annual leave $ - - - - - - - 56,759 56,759 - Payable from current assets: Bank overdraft - - - - 28,708 - - - 28,708 218,871 Advance from central treasury 3,471,329 4,024 90,502 362,365 - - - - 3,928,220 3,226,229 Accounts payable 9,747 192,567 - 211,750 10,403 1,337 - - 425,804 796,019 Retainage payable - - - 461,341 - - - - 461,341 441,501 Salaries payable - 531,305 - - 129,829 - - - 661,134 584,281 Payroll taxes accru- ed and withheld 7,471 154,724 - - - - - - 162,195 142,652 Employee benefits accrued and withheld 25,219 426,668 - - - - - - 453,887 488,759 Other accrued liabilities 153 198,935 - - 943 - - - 200,031 277,291 Customer deposits - 300 - - 5,214 - - - 5,514 6,846 Deferred and un- realized revenues 1,669,283 2,680,281 - 2,633,942 - - - - 6,963,506 5,179,349 Deferred compensation 133,716 - - - - - - - 133,716 - Due to other funds - 375,778 - - - 913 - - 376,691 275,787 Due to student organizations - - - - - 74,148 - - 74,148 66,006 Payable from restricted assets: Advance from central treasury - - - - 33,695 - - - 33,695 - Contracts payable - - - - 485,140 - - - 485,140 651,751 Retainage payable - - - - 128,377' - - - 128,377 223,892 Unearned grant receipts - - - - 2,026,163 - - - 2,026,163 968,156 General obligation bonds payable - - - _ - - - - 25,815,000 25,815,000 30,025,000 Total liabilities 5,316,918 4,566,582 90,502 3 ,669,398 . 2,848,472 76,398 - 25,871,759 42,440,029 43.572,390 (Continued) 3 Exhibit A, Cont. CODIAC ISLAND BOROUGH Combined Balance Sheet - All Fund Types and Account Groups, Continued See accompanying notes to combined financial statements. -5- Fiduciary Account Groups Governmental Fund Types Proprietary Fund Type - General General Special Debt Capital Fund Type - Student Fixed Long -term Totals (memorandum only) Liabilities and Fund Equities General Revenue Service Projects Enterprise Activities Assets Debt 19 5 19 Fund equities: Investment general fixed ass S - - - - » - 68,752,625 - 68,752,625 42,673,017 Reserved: Encumbrances 25,674 303,439 - 3,968,258 - - - - 4,297,371 10,436,457 Fuel inventory - 72,000 - - - - - - 72,000 - Receivable from Lion Capital Group Chapter 11 Bankruptcy Trustee 1,000,000 - - - - - - - 1,000,000 1,000,000 Contributions in aid of construction - - - - 12,3991535 - - - 12,399,535 8,788,697 Accumulated amortization - - - - (252,099) - - - (252,099) (229,166) Retained earnings: Designated: Receivable from Lion Capital Group Chapter 11 Bankruptcy Trustee - - - - 1,000,000 - - - 1,000,000 1,000,000 Undesignated - - - - 1,547,138 - - - 1,547,138 1,427,530 Unreserved: Designated: Working capital 900,000 - - - - - - - 900,000 900,000 Debt service - - - - - - - - - 6,300,296 Subsequent year expenditures - 808,063 7,120,565 1,223,908 - - - 9,152,536 2,420,190 Undesignated 736,240 3,299,376 - _ - - - - 4,035,616 2,206,626 Total fund equities 2,661,914 4,482,878 7,120,565 5,192,166 14,69'1,574 - 68,752,625 - 102,904,722 77,123,847 Contingent liabilities (notes 12 and 13) = 7,978,832 9,049,460 7,211,0_67 8 j 861� 564 17,543,046 7b 68,752,625 25,8�71,�759 145,3344 751 120,6 See accompanying notes to combined financial statements. -5- Exhibit B KODIAK ISLAND BOROUGH Combined Statement of Revenues, Expenditures, Other Financial Sources (Uses) and Changes in Fund Balances - Governmental Fund Types Year ended June 30, 1985 with comparative totals for 1984 Revenues: Property taxes Intergovernmental: State sources Federal sources Land sales Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures: Borough Assembly Manager's department Clerk's department Finance department Legal department Assessment department Community development department Engineering department Hsaith and sanitation Data services Resource management Buildings and grounds General administration Building inspector's department Civil defense Hospitai support Facilities coordinator department Education support Capital improvements Debt service Other Total expenditures Excess (deficiency) of revenues over expenditures Other financial sources (uses): Proceeds of bond sales Operating transfers from other funds Operating transfers to other toads Net other financial sources (uses) Excess (deficiency) of revenues and other financial sources over expenditures and other financial uses Fund balances at beginning of year Change in method of accounting for annual leave Equity transfers Adjustment to reserve for fuel inventory Fund balances at end of year See accompanying notes to combined financial statements. E-11 Special Capital Totals (memorandum only) General Revenue Debt Service Projects 19 198 1,868,049 142,546 - - 2,010,595 1,979,487 2,363,637 20,222,390 - 2,621,712 25,207,739 22,980,192 1,749 862,222 - 28,912 892,883 1,117,397 - 593,593 - - 593,593 636,555 66,236 723,978 - 60,075 850,289 896,889 454,218 .753,$89 584 015 23 Titre 628 917 . 1, 143,534 2 810 684 32 3� T$3 1,904,052 3 855 ,2233 29,514,572 53,004 - - - 53,004 40,145 132,234 - - - 132,234 124,397 143,428 - - - 143,428 133,094 191,846 - - - 191,846 184,167 T8,639 - - - 78,639 118,633 184,808 - - - 184,808 216,675 189,835 213,955 - - 403,790 269,099 11 - 9 ,834 492,384 - 1,159,337. - - t - tt:,a34 1,651,T21 ,,ty: 1,100,464 26T,493 - - - 26T,493 339,515 16,985 - - 16,985 - 357,023 - - 351,023 253,067 224,159 115,380 - - 339,539 179,409 64,850 - - - 64,850 56,725 4,464 - - - 4,464 - 321,949 9,961 - - 9,961 1,211 51,000 16,120,873 - - 16,171,873 15,255,859 - 154,5T8 - 9,645,979 9,800,557 12,339,425 - - 6,318,539 - 6,318,539 3,305,900 - 2,220,924 ,3�8,539 12 240 3 ,3 t .115,14 9 3 ,308 2,532,965 5,013,598 ( 5,689,622 ) (5,791,746 (3,934,805 (4,792,596 - - - - - 9,500,000 15,000 2,074,110 6,520,141 617,947 9,227,198 9,491,859 ( 2,692,654 ) (6,199,294 (10,250 (325,000 (9,227,198 (9,491,859 ( 2,677,654 ) (4,125,184 6,509,891 292,947 9,500,000 (144,689) 888,414 820,269 (5,498,799) (3,934,805) 4,707,404 2,742,239 3,530,069 6,300,296 10,690,965 23,263,569 18,556,165 56,759 - - - 56,759 - T,605 (7,605) - - - - T2,000 72,000 $ 2,661,914 4,482,878 7,120,565 5,192,166 19,457,523 23,263,569 See accompanying notes to combined financial statements. E-11 KODIAK ISLAND BOROUGH Combined Statement of Revenues, Expenditures, Other Financial Sources (Uses) and Changes in Fund Balances - Budget and Actual - General Fund, Special Revenue Funds and Debt Service Funds Year ended June 30, 1985 See accompanying notes to combined financial atements. General Fund Special Variance favorable Budget Actual (unfavorable) Budget Revenues: Property taxes $ 1,836,690 1,868,049 31,359 141,040 Intergovernmental: State sources 2,394,790 2,363,637 (31,153) 19,933,747 Federal sources 1,820 1,749 (71) 924,049 Land sales - - - 745,400 Licenses, permits, fees and other local revenues 89,160 66,236 (22,924) 651,819 Investments and property 358 000 4,680,4 454 218 96 218 2 4 44,596 22 Total revenues ,T53,Sr9 737 + Expenditures: Borough Assembly 44,730 53,004 (8,274) - Manager's department 133,430 132,234 1,196 - Clerk's department 145,290 143,428 1,862 - Finanee department 188,640 191,846 (3,206) - L,p 1 dc,:,.:' 118,1v ^O 78,u39 39,46i - Assessment department 185,710 184,808 902 - Community development department 228,070 189,835 38,235 914,997 Engineering department 173,920 115,834 58,086 Health and sanitation 451,000 492,384 (41,384) 1,144,286 Data services 263,150 267,493 (4,343) - Resouree management 15,000 16,985 (1,985) - Buildings and grounds - - - 445,260 General administration 263,940 224,159 39,781 135,209 Building inspector's department 116,790 64,850 51,940 - Civil defense 5,000 4,464 536 - Facilities coordinator department - 9,961 (9,961) - Education support 51,000 51,000 - 16,831,463 Capital improvements - - - 439,183 Principal - - - - Interest - - - - Fiscal agent fees Total expenditures - 2,3 - 83 +770 - 2,220,924 2 - 1 , 4 - 19,9 10,39 Excess (deficiency) of revenues over expenditures 2,296,690 2,532,965 236,275 2,930,253 Other financial sources (uses): Operating transfers from other funds 20,000 15,000 (5,000) 2,167,315 Operating transfers to other funds (2 776 050) 56,050 (2 692 654) X 83 3396 (5,886,645 (3,719,330 Net other financial sources (uses) ( 2,T - ( 2,67 , T i 65T1 ) 7b,39b Excess (deficiency) of revenues and other financial sources over expenditures and other financial uses (459,360) (144,689) 314,671 (789,077) Fund balances at beginning of year 2,742,239 2,742,239 - 3,530,069 Change in method of accounting for annual leave - 56,759 56,759 - Equity transfers - T,605 7,605 - Adjustment to reserve for fuel inventory - - - - Fund balances at end of year $ 2,282,879 2,661,914 379,035 2,T40,992 See accompanying notes to combined financial atements. Exhibit C Revenue Funds Debt Service Funds Totals (memorandum only) Variance Variance Variance favorable favorable favorable Actual (unfavorable.). Budget Actual (unfavorable) Budget Actual (unfavorable) 142,546 1,506 - - - 1,9T7,T30 2,010,595 32,865 20,222,390 288,643 - - - 22,328,537 22,586,027 257,490 862,222 (61,827) - - - 925,869 863,971 (61,898) 593,593 (151,80T) - - - 745,400 593,593 (151,807) 723,978 72,159 740,979 790,214 49,235 5 84 015 1 3 9 419 9 37 375,000 62 - 72$ ' - 917 253,917 27, 19b 596 2 1 6� 67 489 554 - 44,730 53,004 (8,274) - - - - 133,430 132,234 1,196 - 145,290 143,428 1,862 - 188,640 191.846 (3,206) 118,100 78,639 39,461 185,710 184,808 902 213,955 701,042 - - - 1,143,067 403,790 739,277 _ _ _ _ 173,920 115,834 58,086 1 (15,051) - - - 1,595,286 1,651,T21 (56,435) 263,150 267,493 (4,343) 15,000 16,985 (1,985) 351,023 94,237 - - - 445,260 351.023 94,237 115,380 19,829 - - - 399,149 339,539 59,610 _ - _ - 116,790 64,850 51,940 - 5,000 4,464 536 _ _ - 9,961 (9,961) 16,120,BT3 710,590 - - - 16,882,463 16,171,873 710,590 154,578 284,605 - - - 439,183 154,578 284,605 - - 5,210,000 4,210,000 1,000,000 5,210,000 4,210,000 1,000,000 _ - 2,667,330 1,984,471 682,859 2,667,330 1,984,471 682,859 - 1F - ,l 1,795,252 137,420 124 068 13,352 1,6 96,211 137,420 30,30 915 124 068 2 54, 09 13 352 3, 54,309 15,14 ,014,750 ,31'8=539 5 2,083,345 ( 7,639,750 ) ( 5,689,622 ) 1,950,128 (2,412,807 1,856,941 4,269,748 2,074,110 (93,205) 6,100,630 6,520,141 419,511 8,287,945 8,609,251 321,306 (6,199,294 (312,649 (10,250 (10,250 - (B 672 945) (8 902 198) (229,253 92,053 (4,125,184 (405,854 6,090,380 6,509,891 419,511 385,000 292,947 888,414 1,677,491 (1,549,370) 820,269 2,369,639 (2,797,807) 1,563,994 4,361,801 3,530,069 - - - - - - 56,759 - 56,759 (7,605) (7,605) 6,300,296 6,300,296 - 12,572,604 12,572,604 - 72,000 T2,000 - - - 72,000 T2,000 4,482,878 1,T41,886 4,T50,926 7,120,565 2,369,639 9,774,797 14,265,357 4,490,560_ -7- rvhihi t n KODIAK ISLAND BOROUGH Proprietary Fund Type - Enterprise Funds Statement of Revenues, Expenses and Changes in Retained Earnings Year ended June 30, 1985 with comparative figures for 1984 See accompanying notes to combined financial statements. 1985 1984 Revenues: Water sales $ 119,472 140,907 Sewer service charges 105,066 53,937 Patient revenues 4,060,077 4,615,468 Installation charges 23,972 9,804 Other 91,507 74,718 Total revenues 4,400,094 4,894,834 Operating expenses: Personal services 19,561 13,114 Purchased water and sewer treatment 156,122 112,780 Repairs and m;:intena. ^.ce 9 ,731 5, ll85 Bad debts 9,283 - Depreciation 227,995 178,258 Installation costs 5,834 14,192 Professional care of patients 2,385,453 2,406,858 Plant operations and household 857,671 828,325 General administrative 1,095,791 1,063,986 Other 5,195 36 8,964 Total operating expenses 4,772 4,631,962 Operating income (loss) (372,542 262,872 Other income (expense): Interest income 176,914 169,343 Interest expense (939) (427) Other, primarily State of Alaska revenue sharing 293,243 389,068 Net other income 469,218 557,984 Net earnings 96,676 820,856 Amortization of contributions in aid of construction 22,933 - Increase (decrease) in retained earnings 119,609 820,856 Retained earnings at beginning of year 2,427,529 1,606,673 Retained earnings at end of year $ 2,547,138 2,42 See accompanying notes to combined financial statements. Exhibit E KODIAK ISLAND BOROUGH Proprietary Fund Type - Enterprise Funds Statement of Changes in Financial Position Year ended June 30, 1985 with comparative figures for 1984 1985 1984 Financial resources provided: Net earnings $ 96,676 820,856 Add depreciation which does not use working capital 227,995 178,258 Working capital provided by operations 324,671 999,114 f State of Alaska grants 1,380,759 3,919,013 Federal grants 1,992,387 185,801 Contribution from the Kodiak Island Borough General Fund for purchase of equipment 237,491 401,296 Reduction of long -term receivable 15,000 - Total financial resources provided 3,950,3 8 5,505,224 Financial resources used: Acquisition of property, plant and equipment Loan to Lutheran Hospitals and Homes Society of America Total financial resources used Increase in working capital 3,715,592 4,560,587 - 900,000 3,715,592 5,460,587 $ 234,716 44,637 (Continued) KODIAK ISLAND BOROUGH Proprietary Fund Type - Enterprise Funds Exhibit E, Cont. Statement of Changes in Financial Position, Continued Changes in components of working capital: Increase (decrease) in: Current assets: Equity in central treasury Receivables Inventories Prepaid expenses Restricted assets: Equity in central treasury Time certificates of deposit Receivables from Federal government Accrued interest receivable Receivable from Lion Capital Group Chapter 11 Bankruptcy Trustee Current liabilities: Bank overdraft Accounts payable Customer deposits Accrued liabilities Payable from restricted assets: Advance from central treasury Contracts payable Retainage payable Unearned grant receipts Increase in working capital See accompanying notes to combined financial statements. 1985 1984 $ 34,292 40,744 (27,467) (238,264) 8,406 6,356 10,084 7,390 (30,907) 30,907 997,787 (100,000) - (4,225) 40 12,500 - 1,000,000 1,032,646 755,408 25,212 (2,216) (31,.988) (20,089) (1,332) (475) (23,538) (55,976) 33,695 (5,104) (166,611) (31,156) (95,515) 220,892 1,058,007 604,895 797,930 710,771 $ 23� 4 -10- Exhibit F KODIAK ISLAND BOROUGH Fiduciary Fund Type - Student Activities Fund Statement of Changes in Assets and Liabilities Year ended June 30, 1985 Balance at Balance at Assets July 1, 1984 Additions Deletions June 30, 1985 Cash $ 66,506 149,479 140,305 75,680 Other receivables 678 168 128 718 $ 67,184 149,647 140,433 76,398 Liabilities Accounts payable 1,178 1,337 1,178 1,337 Due to other funds - 913 - 913 yue to student organizations 66,006 !47,397 139,255 74,148 $ 67,184 149,647 140,433 76,398 See accompanying notes to combined financial statements. -11- KODIAK ISLAND BOROUGH Notes to Combined Financial Statements June 30, 1985 (1) Policies 1 Statements ) was organized to perform duties allowed by Alaska Statutes and as directed by its accompanying financial statements include all activities eluding all component units. The financial results of th ties performed directly by the Borough are accounted for Borough. As discussed in the following paragraphs, the B contracts with various related entities to fulfill certai the municipal residents. The of the Borough, in- e recurring activi- in the funds of the orough delegates and n of its functions. The Borough has deleo-' the operating responsibility for public education to the Kodiak Islan . Nrough School District (School District). In accordance with statutes, the Borough retains ownership of the educationally related fixed assets and incurs the debt, if necessary, to finance the acquisition and construction of the school facilities. The Borough and the School Dis- trict maintain separate accounting records of financial activity. The Borough includes the combined financial statements of the School District as a Special Revenue Fund in these combined financial statements. The Borough Assembly, as the oversight authority, approves the total annual bud- get of the School District and may during the year increase or decrease the total appropriation. The Borough Assembly also approves the borrowing of funds and issuance of bonds for the School District. The Borough levies and collects taxes for the School District. The Borough owns the Kodiak Island Borough Hospital (Hospital) and related fur- nishings. The Borough has contracted the Hospital's operating activities to the Lutheran Hospitals and Homes Society of America. By terms of that agree- ment, operating losses sustained (as contractually defined), if any, are the ultimate responsibility of the Borough. Annual contributions, as well as direct payment for equipment and plant repairs, are made by the Borough to subsidize the Hospital's financial operations. These contributions and direct payments are recorded as expenditures of the Borough's General Fund or Capital Projects Funds. The comprehensive financial position and operating results of the Hospital are included in these combined financial statements. No other entities exist in which the Borough has oversight responsibility accountability for fiscal matters, scope of public services or special financing relationships. (Continued) -12- 2 KODIAK ISLAND BOROUGH Notes to Combined Financial Statements Fiscal Year -ends The Borough has a June 30 year -end. The Statute, has a June 30 year -end. The the accompanying financial statements Hospital as of December 31, 1984, and then ended. School District, as required by State Hospital has a December 31 year -end and include the financial position for the the results of operation for the year Presentation The combined statements - overview section of t] summary overview of the financial position and of the operating results of all funds. been prepared from the detailed statements dividual fund and account group statements report. lese financial statements provide a of all funds and account groups These combined statements have included in the combining and in- and schedules included in this Total columns on the combined statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in thaga e%n1 imTQ A rat nr.4moan t f ;. r r. ".ci l "-a4+-4_ ,•. ,....,+ �.,.., ♦ c.vurvV va vjJC:i uvivla►r, vi changes in financial position in conformity with generally accepted account - ing.principles. Neither are such data comparable to a consolidation. Inter - fund eliminations have not been made in the aggregation of these data. The accounting policies of the Borough conform to generally accepted accounting principles. Fund Accounting The accounts of the Borough are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. Operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Borough resources are allocated to and account- ed for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in the combined financial statements in this report into six generic fund types and three broad fund categories as follows: (Continued) -13- 3 KODIAK ISLAND BOROUGH Notes to Combined Financial Statements Governmental Fund Types General F und - The General Fund Borough. required It is used to account to be accounted for in is the general operating fund of the for all financial resources except those another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments and major capital projects) that are legally restricted to expenditures for specific purposes. Debt Service Funds - The Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest and related costs. Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for acquisition or construction of major capital facilities. Proprietary Fund Type - Enterprise Funds - The Enterprise Funds are used to account for operations (a) that are financed and operated in a manner simi- lar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recov- ered primarily through user charges or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and /or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. Fiduciary Fund Type - Student Activities Fund_ - The Student Activities Fund is used to account for assets held by the Borough as an agent for enti- ties. The Student Activities Fund is custodial in nature (assets equal liabilities) and does not involve measurement of results of operations. (Continued) -14- 4 KODIAK ISLAND BOROUGH Notes to Combined Financial Statements Account Groups The accounting and reporting treatment applied to the fixed assets and long -term liabilities associated with a fund are determined by its measurement focus. Governmental Fund Types are accounted for on a spending or financial flow measurement focus. This means that only current assets and current liabili- ties are generally included on their balance sheets. Their reported fund balances (net current assets) is considered a measure of available spendable resources. Governmental Fund Type operating statements present increases (revenues and other financial sources) and decreases (expenditures and other financial uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. The two account groups are not funds. They are concerned only with the measure- ment of financial position. They are not involved with measurement of results of operations. General Fixed Assets Fixed assets used in Governmental Fund Type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group rather than in Governmental Fund Types. Public domain (infrastructure) general fixed assets consisting of certain improvements other than buildings, in- cluding roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, are not capitalized. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. General Long -term Debt Long -term liabilities expected to be financed from Governmental Fund Types are accounted for in the General Long -term Debt Account Group, not in the Governmental Fund Types. (Continued) -15- KODIAK ISLAND BOROUGH Notes to Combined Financial Statements Noncurrent portions of long -term receivables due to Governmental Fund Types are reported on their balance sheets, in spite of their spending measure- ment focus. Special reporting treatments are used to indicate, however, that they should not be considered available spendable resources since they do not represent net current assets. Recognition of Governmental Fund Type revenues represented by noncurrent receivables is deferred until they become current receivables. Noncurrent installments of long -term loans receivable are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for Governmental Fund Types is limited to exclude amounts represented by non- current liabilities. Since they do not affect net current assets, such long -term amounts are not recognized as Governmental Fund Type expenditures or fund liabilities. They are instead reported as liabilities in the Gen- eral Long -term Debt Account Group. Proprietary Fund Type ..The. Proprietary Fiord T-,pe is accounted for on a cost of se=ices cr capital maintenance measurement focus. This means that all assets and all liabili- ties (whether current or noncurrent) associated with its activity are includ- ed on its balance sheet. Its reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. The Proprietary Fund Type operating statement presents increases (revenues) and decreases (expenses) in net total assets. Depreciation of all exhaustible fixed assets used by the Proprietary Fund Type is charged as an expense against its operations. Accumulated depreciation is reported on the Proprietary Fund Type balance sheet. Depreciation has been provided over their estimated useful lives using the straight -line method. Contributions in aid of construction for the Water and Sewer Enterprise Fund are amortized over the estimated useful lives of the assets acquired using the straight -line method. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the combined financial state- ments. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. (Continued) -16- A KODIAK ISLAND BOROUGH Notes to Combined Financial Statements Governmental Fund Types are accounted for using the modified - accrual basis of accounting. Expenditures are generally recognized under the modified - accrual basis of accounting when the related fund liability is incurred. An exception to this general rule is principal and interest on general long -term debt which is recognized when due. Pursuant to this basis of accounting, material revenues which are both measur- able and available are accrued and other revenues are recorded on the cash basis. Summarized below are the major sources of revenue and the applicable recognition policies: Property Taxes Property taxes are levied on the assessed value of taxable property as of January 1. Pursuant to Alaska Statute 29.53.170, the Borough establishes the mi rate on or before j, 1C T ax b- in � ++ before - j.Z:� . � . .,z:: aiiiiu a=e ti�ydiiie iii a.wi.i _ i11� Ld1.i meats on August 15 and October 15. Borough property tax revenues are recognized in the fiscal year in which they become measurable and available. At June 30, 1985 the 1985 real and personal property tax levy of $1 ,669 ,283 is reflected as deferred revenue of the General Fund. Intergovernmental Revenue State of Alaska shared revenues, State of Alaska municipal assistance, Federal shared revenue, and various State education - related entitlement programs and State levied taxes (the proceeds of which are distributed to local governments) are recorded in the fiscal year to which they relate, including accrual at year -end of final payments due within approximately two to three months after year -end. State of Alaska and Federal governmental cost reimbursable grants and con- tracts (including grants for construction) are recorded to the extent of allowable expenditures in the period in which the expenditures were incur- red. (Continued) -17- 7 KODIAK ISLAND BOROUGH Notes to Combined Financial Statements Revenue from Investments and Property Amounts earned on investment of available cash balances. and the rental of building facilities are recorded in the period to which they relate, including accrual at year -end of balances due. Land Sales Proceeds and Other Local Revenues Amounts received pursuant to land sale contracts (long -term in nature) are recorded on the cash basis. Other local revenues are recorded on a basis consistent with their nature in relation to measurement and availability standards. The Proprietary Fund Type is accounted for using the accrual basis of account- ing. Its revenues are recognized when they are earned and its expenses are recognized when they are incurred. The Fiduci "V W, Fund Type s s a cc /� t- tea o, us ing Lam_ �.: ., ,,.::.. _,p.. � 4vvrVUr3NGV ivr us ing VL1C �u - i 11eQ! accrual basis Of accounting similar to that utilized by Governmental Fund Types. Budgets and Budgetary Accounting The Borough The Borough follows these procedures in establishing the budgetary data reflected in the combined financial statements: a. The Manager must submit to the Borough Assembly by April 13 a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. b. Public hearings are conducted by the Borough Assembly to obtain taxpayer comments. e. By June 10, by Borough Assembly action, the budget is legally enacted through passage of an ordinance. If the Borough Assembly fails to pass an ordinance, the budget submitted by the Manager becomes the adopted budget. (Continued) -18- rA KODIAK ISLAND BOROUGH Notes to Combined Financial Statements d. Amendments to the budget can occur any time during the fiscal year through the Borough Assembly or administrative action. Generally, the following actions are required at the level of the particular change: (1) All new appropriations are authorized by an appropriation ordinance that amends the annual budget ordinance. (2) A resolution of the Borough Assembly is required to move (appropriate) amounts between departments and projects. (3) The administration is authorized and directed by the Borough Assembly to effect the necessary line item changes within the limits establish- ed by Items (1) and (2) above by project or department to properly monitor, account, and report receipts and expenditures. e. All funds are budgeted on an annual basis encompassing a fiscal year, except that budgets of Capital Projects Funds generally encompass the period of project completion which is generally greater than one year. f. Appropriations lapse at year -end to the extent that they have not been expended for all funds except Capital Projects Funds, which lapse at project completion. g. Budgets adopted by the Borough Assembly are in accordance with generally accepted accounting principles. The School District Annual budgets are adopted by the School Board for all revenues, expenditures and interfund transfers. Budgets are prepared and presented on the modified - accrual basis of accounting. Pursuant to Alaska Statutes, the adopted budget is submitted to the Borough Assembly for review and approval. The Borough Assembly is required to approve the School District budget in total only and, by ordinance, appropriate the necessary resources no later than April 30 of the current fiscal year. The School Board retains line item authority once the annual local appropriation is set by the Borough Assembly. In the year ended June 30, 1985, there were two formal budget revisions to adjust the revenues and expenditures to avail- able resources and program needs. No other budgets are legally required. (Continued) -19- E KODIAK ISLAND BOROUGH Notes to Combined Financial Statements Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commit- ments for the expenditure of moneys are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds and Capital Projects Funds. Encumbrances outstanding at year -end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Inventories Expendable operating supplies of the Borough are accounted for using the pur- chase method and, at June 30, 1985, there was no significant amount of such items. Expendable operating supplies of the School District, consisting primarily of teaching, maintenance and food supplies, are accounted for using the consump- tion method. These inventories are valued at the lower of average cost or mcrket, execpt 'JSDs focd invent -.—j (acquired at nominal price) which is recorded at replacement cost. Fuel inventory is accounted for using the purchase method and is recorded at cost on the first -in, first -out basis. Retirement Plans All full -time employees of the Borough and School District participate in either the Alaska Public Employees' Retirement System (PERS) or the Alaska Teachers' Retirement System (TRS). The Borough and School District accrue pension ex- pense which includes current costs and amortization of prior service costs. The policy is to fund pension costs accrued. Annual Leave Annual leave is accrued as earned by employees and recorded as an expenditure in the period earned. The Borough (excluding the School District) records its liability for accrued annual leave in the Governmental Fund Types for the amounts estimated to be liquidated with current available resources. The commitment for accrued annual leave not included in the Governmental Fund Types is recorded in the General Long -term Obligation Group of Accounts. Cash sufficient to pay the long -term debt is deposited in a Debt Service Fund. Enterprise Funds and the School District record leave (including sick leave) as earned. (Continued) -20- 10 KODIAH ISLAND BOROUGH Notes to Combined Financial Statements (2) Change in Accounting Principle for Accrued Annual Leave To conform with the requirements of the National Council on Governmental Accounting (NCGA) Statement No. 4, the long -tem portion of the Borough's accrued annual leave has been recorded in the General Long -term Debt Account Group. (3) Cash and Temporary Investments Central Treasury The cash transactions of the Borough's funds are transacted primarily in a single checking account. Cash carried in this central account in excess of operating needs is invested in temporary certificates of deposit or similar short -term investmenta. Specific Cash Investments Investments have been made by the Borough and identified by the specific source of their funding. All investments are stated at cost, which approximates market value. A summary of these investments at June 30, 1985 follows: Special Debt Capital General Revenue Service Projects Proprietary Fund Funds Funds Funds Fund Type Total Time certificates of deposit: United Bank Alaska: 8.25% 9.25% Alaska Mutual Bank: 7.88% 8% 8.13% 9% 9% 9.13% 9.25% First Interstate Bank of Alaska: 7.68% 9.38% 9.68% 9.68% Merrill Lynch Pierce Fenner 8 Smith, Inc.: 7.45% 7.57% 8.78% 9.40% Security National Bank - 9.7% Goldman, Sachs & Co. - 8.27% Total time certifi- cates of deposit Repurchase agreements - National Bank of Alaska - 6.5% # - - - 1,000,000 - 1,000,000 1,100,000 - 1,100,000 1,100,000 1,000,000 2,100,000 1,000,000 - 1,000,000 - 625,000 - 625,000 300,000 300,000 1,250,000 - - - - 1,250,000 - - 1,100,000 - - 1,100,000 1,000,000 - - 1,000,000 1 000.000 _ ,_nnn.nnn 1,250,000 - 2,400,000 1,000,000 - - - - 1,000,000 - - - 1,000,000 - 1,000,000 1,000,000 - 1,000,000 - - - 1,000,000 1,000,000 1,000,000 - - 3,000,000 4,000,000 1,148,615 - - - 1,148,615 • 1,091,769 - - - 1,091,769 - - - 1,000,074 1,000,074 - - 998 132 - 998 132 272 - 9 - 9�,1 - 32 — 1, - 00 - 0 - , - 077 , 2 8 - - 800.000 997,713 997,713 2,250,000 2,240,384 4,300,000 7,623,132 1,997,787 18,411,303 2,500,000 - - 2,500,000 # 4,750,000 2,240,384 4,300,000 7,623,132 1,997,787 2o,911,3o3 (Continued) -21- 11 KODIAK ISLAND BOROUGH Notes to Combined Financial Statements (4) Annual Appropriation to the School District An annual appropriation is made to the School District in order to provide the School District with total resources in a fiscal year equal in amount to the expenditures and encumbrances incurred (excluding the net effect of student - generated financial activity). That portion (an amount of $140,391 in the year ended June 30, 1985) of the annual budgeted appropriation in excess of the amount necessary to balance the School District's total annual resources to its annual expenditures and encumbrances (excluding the net effect of student - generated financial activity) lapses to the Borough at year -end. In addition to the annual appropriation, the Borough provides the School Dis- trict, without charge, general liability and property insurance and the annual independent audit. (5) Hospital Appropriation By terms of the operating agreement with the Lutheran Hospitals and Homes Society of America, the Borough is ultimately responsible for operating posse. ,as contractually defined), if any, sustained by the Hospital. Shared revenue received by the Borough from the State of Alaska includes $250,000, required to be passed through to the Hospital. The Borough recorded this amount as intergovernmental revenue and the pass- through as an expenditure for Hospital support. (6) Retirement Commitments As of June 30, 1985, substantially all employees of the Borough and School Dis- trict participate in either the Alaska Public Employees Retirement System (PERS) or the Alaska Teachers' Retirement System (TRS). Borough personnel and School District classified personnel participate in PERS. School Dis- trict certificated personnel participate in TES. ,Both systems are statewide multi- employer defined benefit retirement plans, administered by the State of Alaska, to which employees and employers both contribute. The rate of em- ployers' contribution to PERS and TRS is set periodically by the retirement systems based on actuarial evaluation. (Continued) -22- 12 KODIAK ISLAND BOROUGH Notes to Combined Financial Statements The PERS actuarial present value of benefits, both vested and nonvested combined (the distinction between actuarial present values of vested and nonvested benefits is not available), assuming an 8% annual return on assets at June 30, 1984 (date of latest actuarial study available), was $733,281 for the Borough and $2,331,358 for the School District. The net pension fund assets available for benefits were $844,102 for the Borough and $1,967,516 for the School District. Total 1985 pension plan expense for PERS, including amortization of past service costs over 25 years, was as follows: Borou School District Total $ 105,204 358,288 568,696 The TRS actuarial present value of benefits, both vested and nonvested combined, and the net pension fund assets available for benefits segregated for the School District are not available. TRS is a joint contributory retirement system to provide benefits for teachers of the State of Alaska. The employee contributes a percentage of base salary accrued from July 1 to the following June 30. The School District and the State of Alaska each contributes an amount equal to one half of the amount required in addition to member contri- butions to finance the benefits of the system. Total 1985 pension expense for TRS was $611,870. Contributions to these plans are a percentage of eligible gross wages made by both the employer and employee as follows: 1985 -86 1984 -85 School School Borough District Borough District PERS PERS TRS PERS PERS TRS Employee 4.25% 4.25% 7.00% 4.25% 4.25% 7.00% Employer 11.26 12.65 8.88 11.28 11.40 8.98 15.51% 16.90% 15.88% 15.53% 15.65% 15.98% (Continued) -23- 13 KODIAK ISLAND BOROUGH Notes to Combined Financial Statements 7) Long -term Debt The folloring is a summary of long -term debt for the year ended June 30, 1985: General Interest Maturity Payments Authorised bliation Bonds Rates Dates Issue date date Dates Amount Year Amount arm bonds - Hospital building 4.875% Nov.1 -May 1 May 1, 196T May 1,1987 May 1,1987 $ erial bonds: 50,000 Schools 3.625 - 3.875% Sep.1 -Mar.1 Mar.1,1965 Mar.1,1985 1,900,000 Schools 5 -5.75% Sep.1 -Mar.1 Jan.1,1967 Sep.1,1987 Sep.1,1985 270,000 290,000 Sep.1,1986 310,000 330,000 Sep.1,1987 Schools refunding 5 -5.T5% Aug.1 -Feb.1 Apr.1,1974 Aug.1,1985 Aug.1,1985 Schools refunding 7.25% Aug.1 -Feb.1 Aug.1,1974 Aug.1,1992 Aug.1,1986 Aug.1,1987 Aug.1,1988 Aug.1,1989 Aug.1,1990 Aug.1,1991 Aug.1,1992 Schools 7.3 -9% Aug.1 -Feb.1 Aug.1,1980 Aug.1,2000 Aug.1,1985 Aug.1,1986 Aug.1,1987 Aug,1 Aug.1,1989 Aug.1,1990 to Aug.1,1994 Aug.1,1995 to Aug.1,1999 Junior High School Variable Quarterly Jun.1,1984 Jul.1,1986 Jul.1,1985 Renovation Oct.1,1985 Jan.1,1985 Apr.1,1986 Jul.1,1986 High School Auditorium Variable Quarterly May 3,1985 Jul.1,1989 Jul.1,1985 Oct.1,1985 Jan.1,1986 Apr.1,1986 Jul.1,1986 Oct.1,1986 Jan.1,1987 Apr.1,198T Jul.1,1987 Oct.1,1987 Jan.1,1988 Apr.1,1988 Jul.1,1988 Oct.1,1988 Jan.1,1989 Apr .1,1989 Jul.1,1989 300,000 1967 $ 300,000 - 1963 500,000 50,000 1965 450,000 50,000 50,000 210,000 1974 4,000,000 215,000 1974 1,900,000 235,000 250,000 270,000 290,000 310,000 330,000 370,000 1979 29,000,000 395,000 430,000 465,000 600,000 600,000 600,000 1,000,000 1,000,000 400,000 400,000 400,000 450,000 450,000 450,000 450,000 500,000 500,000 500,000 500,000 550,000 550,000 550,000 550,000 550,000 550.000 28,815,000 % 36,150,000 12,100,000 605,000 - 11,495,000 7,400,000 1,200,000 - 6,200,000 9,500,000 - - 9,500,000 340,000 11,155,000 - 2,400,000 3,800,000 1,343,163 1,397,812 1,200,000 8,300,000 1,138,722 1,360,840 36,150,000 3,800,000 2,325,000 30,025,000 - 4,210,000 25,815,000 -24- Prior yearn Balance at Current year Balance at Sinking Fund Issued Retired Refunded July 1, 1984 Issued Retired June 30, 1985 Required Available 300,000 - - 300,000 - - 300,000 285,000 312,561 500,000 475,000 - 25,000 - 25,000 - 450,000 250,000 - 200,000 - 50,000 150,000 4,000,000 1,270,000 2,325,000 405,000 - 195,000 210,000 1,900,000 - - 1,900,000 - - 1,900,000 12,100,000 605,000 - 11,495,000 7,400,000 1,200,000 - 6,200,000 9,500,000 - - 9,500,000 340,000 11,155,000 - 2,400,000 3,800,000 1,343,163 1,397,812 1,200,000 8,300,000 1,138,722 1,360,840 36,150,000 3,800,000 2,325,000 30,025,000 - 4,210,000 25,815,000 -24- 14 KODIAK ISLAND BOROUGH Notes to Combined Financial Statements Refunding Bonds During 1974, the Borough defeased existing bonds by utilizing the proceeds of bonds then issued. The proceeds from the "refunding bonds" (issued in the amount of $2,325,000) have been invested in U.S. Government securities at an interest rate which will result in a return of proceeds that, when added to the securities' principal balances, will be sufficient to meet the interest and principal require - ments of the defeased bonds. The investments in the securities and the current obligations of the defeased bonds are not reflected in the combined financial statements. A summary of the investments held in trust and the current obli- gations of the defeased bonds at June 30, 1985 are summarized as follows: Bond principal Investments outstanding held in trust Series 1974 School bonds, 5.25% to 5.7%, due in installments to 1992 % 2,0� 2,01 ,014 *Central Bank of Denver as Trustee (8) General Fixed Assets Account Group A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1985 follows: Balance at Add items not Balance at July 1, 1984, previously July 1, 1984, as previously included or as restated reported miselassified Land $ - 18,868,430 Buildinaa 29i233, 8 , 257 , 78 - 5 Improvements other - - 730,239 than buildings 1,146,422 (416,183) Equipment 1,672,900 226,071 Construction work 196,665 (99,989) in progress 10,820,098 3,373,146 237,491 42,87 26,9 Balance at Water and July 1, 1984, Balance at as restated Additions Deductions June 30, 1985 18,868,430 - - 18,868,430 37,49 +,382 2,000,991 - 39,492,313 T30,239 - - 730,239 1,898,971 377,034 71,212 2,204,793 10,820,098 T,203,450 10,566,758 7,456,790 69, Bog, i 2o 9,581,475 10,637,970 68,752,625 General fixed assets are recorded as expenditures of the various Borough funds at the time of purchase and are subsequently capitalized for memorandum purposes in the General Fixed Asset Account Group. Such assets include land, buildings, equipment, furniture and other related assets. Public domain (infrastructure) general fixed assets consisting of certain improvements other than buildings such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. (9) Enterprise Fund Segment Information The Borough owns and operates a Water and Sewer Utility Enterprise Fund and the Kodiak Island Borough Hospital is included in the Borough's financial statements as a component unit. The water and sewer utility operation has a June 30 year -end while the Hospital operates on a December 31 year -end. Segment financial data as of and for the year ended June 30, 1985 for the water and sewer utility and as of and for the year ended December 31, 1984 for the Hospital are as follows: (Continued) -25- Water and Sewer Utility Hospital Total Operating revenues $ 248,510 4,151,584 4,400,094 Depreciation 22,934 205,061 227,995 Operating income (loss) 19,850 (392,392) (372,542) Operating grants, entitlements and shared revenues - 292,403 292,403 Net earnings (loss) 196,665 (99,989) 96,676 Contributions in aid of construction 3,373,146 237,491 3,610,637 Amortization of contributions in aid of construction 22,933 - 22,933 Property, plant and equipment additions 3,373,146 342,446 3,715,592 Net working capital 481,986 1,029,323 1,511,309 Total equity 9,155,310 5,539 14,6 (Continued) -25- 15 BODIAK ISLAND BOROUGH Notes to Combined Financial Statements (10) Capital Projects Funds Construction Commitments A summary of Capital Projects Funds construction commitments at June 30, 1985 are summarized as follows: Various Borough Projects Fund $ 177,761 School Bond Improvements Fund 2,397,181 School Equipment and Furnishings 10,218 State Capital Grants Fund 1, $ 3,968,258 Resources are presently available or committed to finance construction commitments at June 30, 1985. (11) Interfund Receivables and Payables A summary of interfund receivables and payables at June 30, 1985 is as follows: Receivable Payable Special Revenue Funds: Mental Health Center $ 50,170 - Education 110 763 375.778 Total Special Revenue Funds 160, 375 Capital Projects Funds - School Equipment and Furnishings 215,758 - Fiduciary Fund Type - Student Activity Funds - 913 $ 37�1 376,691 (12) Litigation The Borough, in the normal course of its activities, is involved in various claims and pending litiga- tion. In the opinion of management, the Borough has adequate insurance coverage to prevent these matters from having a material adverse effect on the Borough's combined financial statements; however, the outcome of these matters is not presently determinable. (13) Contingent Liabilities The Borough participates in a variety of State and Federal assistance grant programs. These programs are subject to program compliance reviews by the grantors or their representatives. The audits of these programs for and including the year ended June 30, 1985 have not yet been conducted. Accord- ingly, compliance with applicable grant requirements by the Borough will be established at some future date. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the Borough expects such amounts, if any, to be immaterial. (14) Subsequent Event As indicated in Exhibit A, the Borough has $2,000,000 in receivables from the Lion Capital Group, Chapter 11, Bankruptcy Trustee. Extensive litigation was instituted in May 1984 by the Borough and other entities that culminated in a plan approved by the U.S. Bankruptcy Court for an initial distribution of available assets approxi- mating 70% of the receivables on November 27, 1985. Additional distributions of unknown amounts are anticipated. -26- GENERAL FUND The General Fund accounts for the financial operations of the Borough that are not required to be accounted for in any other fund. Principal sources of revenue are property taxes and inter ^" - --nme :tal =revenues. Primary expenditures in the General Fund are for general governmental and public services. KODIAK ISLAND BOROUGH General Fund Balance Sheet June 30, 1985 with comparative figures for 1984 Assets 1985 1984 Cash and investments: Temporary cash investments $ 4,750,000 3,000,242 Other cash balances 1,723 1,710 Investment in deferred compensation plan 133,716 Total cash and investments 4,885,439 3,001,952 Receivables: Property taxes: Areawide role due in su'bseq'uent year 1,669,283 1,60 0 5,9 7 19 Delinquent taxes 19,366 30,099 Allowance for uncollectible delinquent taxes (20,000 (22,777 Net property taxes 1,668,649 1,613,301 State of Alaska 390,756 802,187 Accrued interest receivable 20,928 54,312 Other 13,060 1,247 Net receivables 2,093,393 2,471,047 Receivable from Lion Capital Group Chapter 11 Bankruptcy Trustee 1,000,000 1,000,000 $ 7,978,832 6,472,999 Schedule 1 Liabilities and Fund Balance 1985 1984 Liabilities: Advance from central treasury $ 3,471,329 2,001,084 Accounts payable 9,747 52,509 Payroll taxes accrued and withheld 7,471 9,371 Employee benefits accrued and withheld 25,219 61,664 Other accrued liabilities 153 153 Deferred compensation payable 133,716 - Deferred revenue areawide tax role due in subsequent year 1 ; 669,283 Total liabilities 5,316,918 3,730,760 Fund balance: Reserved: Encumbrances 25,674 14,951 Receivable from Lion Capital Group Chapter 11 Bankruptcy Trustee 1,000,000 1,000,000 Unreserved: Designated: / Working capital 900,000 v 900,000 Subsequent year expenditures - 770,533 Undesignated 736,240 56,755 Total fund balance 2,661,914 2,742,239 $ 799789832 6,472,999 -27- Schedule 2 KODIAK ISLAND BOROUGH General Fund Statement of Revenues, Expenditures, Transfers and Changes in.Fund Balance - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 (Continued) -28- 1985 Variance favorable 1984 Budget Actual (unfavorable) actual Revenues: Property taxes: General $ 1,482,540 1,476,411 (6,129) 1,492,656 Penalty and interest 30,000 27,245 (2,755) 29,815 Payment in lieu of taxes Total 324,150 �3 364 393 40,243 320 990 property taxes ,,690 1, ,049 31,359 1 Intergovernmental: State sources: State shared revenue 830,560 709,470 (121,090) 745,522 Municipal a3313t&n09 836,700 840,704 4,004 724,280 Raw fish tax 550,000 651,383 101,383 709,477 Electric co-op tax 9 - (9 5,515 Motor vehicle tax 168,050 161,792 (6,258) 165,305 Miscellaneous 290 288 (2) 2,022 Total State sources 2,3990 2 (31,153) 2,;;2,121 Federal sources Total intergovernmental 1 820 2,396,6110 1 749 2,3 2,3 55.3 (71) (31,224) 1,596 2,353,717 Licenses, permits, fees and other local revenues: Buildings and trailers 20,000 22;698 2,698 21,783 Subdivision and zoning fees 11,250 13,623 2,373 12,996 Sale of copies 2,500 2,826 326 2,002 Salc of general fixed anaets 600 1,239 639 383 Miscellaneous 54,810 25,850 (28,960 7,420 Total licenses, permits, fees and other local sources 89,160 6 6,236 (22,924 44,584 Investments and property: Interest income 270,000 376,014 106,014 403,861 Lease rentals on land and building 8,000 4,094 (3,906) 9,298 Computer rental Total investments 80 000 35�, 0 74 110 491 2 0 (5 890) 96,218 44 149 5 }7,308 and property Total revenues 4,680,460 4,753,889 73,429 4,699,070 Expenditures: Borough Assembly 44,730 53,004 (8,274) 40,145 Manager's department 133,430 132,234 1,196 124,397 Clerk's department 145,290 143,428 1,862 133,094 Finance department 188,640 191,846 (3,206) 184,167 Legal department 118,100 78,639 39,461 118,633 Assessment department 185,710 184,808 902 216,675 Community development department 228,070 189,835 38,235 170,044 Engineering department 173,920 115,834 58,086 55,194 Health and sanitation 451,000 492,384 (41,384) 505,949 Data services 263,150 267,493 (4,343) 339,515 Resource management 15,000 16,985 (1,985) - General administration 263,940 224,159 39,781 93,977 Building inspector's department 116,790 64,850 51,940 56,725 Civil defense 5,000 4,464 536 - Facilities coordinator department - 9,961 (9,961) 1,211 Education support 51,000 51,000 - 57,000 Other Total expenditures - 2,3 30 ,770 - 2,220,924 162,846 12.240 2,10 (Continued) -28- 2 KODIAK ISLAND BOROUGH General Fund Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual, Continued Excess of revenues over expenditures Operating transfers from other funds: Special Revenue - land sales Capital Projects - State School Construction Total operating transfers from other funds Operating transfers to other funds: Special Revenue: Mental Health Center Education Buildings and Grounds Debt Service - School Bonds Capital Projects: State Capitsl Grants State !Municipal Aid Program Various Borough Projects 1980 and 1985 School Bond Improvements Hospital Improvements State School Construction Total operating transfers to other funds Not nper etin_r transfers Excess (deficiency) of revenues and operating transfers from other fmda over expenditures and operating transfers to other funds Fund balance at beginning of year Change in method of accounting for annual leave Equity transfers from Special Revenue Fund Fund balance at and of year Schedule 2, Cont. -29- 1985 Variance favorable 1984 Budget Actual (unfavorable) actual 2,296,690 2:532,965 236,275 2,590,104 20,000 15,000 (5,000) - 20,000 15,000 5 121 160 121 1� 55,000 55,000 - - 1,517,500 1,377,345 140,155 1,478,912_ 23,550 223,550 (200,000) 110,710 800,000 856,759 (56,759) 227,350 - - - 25,000 200,000 - 200,000 - - - - 714,943 - - - 74,717 2,7 ,050 2, 92, 5 �39� 17 910 2,664, 2 ( 2,756,050 1 ( 2,677,654 ) 73,396 ( 2,543,382 ) (459,360) (144,689) 314,671 46,722 2,742,239 2,742,239 - 2,684,707 - 56,759 56,759 - - 7,605 7,605 10,810 $ 2,28 79 2,661,914 37� 9,035 2,742,239 -29- Schedule 3 BODIAB ISLAND BOROUGH General Fund Statement of Expenditures and Transfers - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 -30- 1985 Variance favorable 1984 Budget Actual (unfavorable) actual Expenditures: Borough Assembly: Mayor honorariums and amenities ; 100 101 (1) 80 Mayor compensation 1,200 1,200 - 1,233 Assembly compensation 8,400 8,100 300 11,787 Retirement contribution 1,080 416 664 910 Office supplies 100 84 16 - Telephone and telegraph 550 261 289 120 Travel and per diem - Mayor 2,500 3,247 (747) 2,402 Travel and per diem - Assembly 12,000 11,190 810 8,342 Insurance and bonding _3,800 10,043 (6 5,165 Printing and binding 6,000 6,972 (972) 4,101 Publications and dues 6,000 9,585 (3,585) 3,291 2',000 1,805 195 2,204 Legislative effort Total Borough Assembly 1000 44,730 - ' 1 000� (8,274 510 53.0- Manager's department: Borough manager salary 57,500 53,451 4,049 56,425 Secretary salary 27,580 29,869 (2 25,361 Unemployment tax 600 672 (72) 260 3001al 5e0drity tax 4,560 5,823 (1,263) 4,237 Group insurance 4,270 5,934 (1,664) 4,292 Worker's compensation 1,000 687 313 722 Termination reserve - - - 13,029 Retirement contribution 9,560 9,347 213 10,352 Professional development 1,500 1,167 333 1,484 Office supplies 600 765 (165) 554 Telephone and telegraph 1,500 975 525 1,515 Travel and per diem 2,500 2,476 24 891 Insurance and bonding 100 50 50 - Repairs and maintenance 650 221 429 245 Printing and binding 4,500 4,218 282 2,381 Publications and dues 2,500 2,350 150 873 Furniture and fixtures 2,000 2,115 (115) - Boards and committees 1 823 177 1,006 Personnel recruitment - - - T70 Machinery and equipment 8,010 8,000 10 - Advertising and hearings 500 291 209 - Contracted services 3,000 3,000 Total manager's department 133,430 132,234 1,196 124,397 (Continued) -30- 2 KODIAK ISLAND BOROUGH General Fund Statement of Expenditures and Transfers - Budget and Actual, Continued Schedule 3, Cont. -31- 1965 Variance favorable 1984 Budget Actual (unfavorable) actual Clerk's department: Clerk salary . $ 49,470 56,795 (7,325) 46,021 Secretary salary 12,990 12,839 151 27,007 Deputy clerk salary 15,000 13,554 1,446 - Unemployment tax 600 740 (140) 431 Social security tax 4,670 4,723 (53) 4,390 Group insurance 4,460 4,467 (7) 4,547 Worker's compensation 510 591 (81) 665 Termination reserve 2,980 - 2,980 - Retirement contribution 8,710 8,845 (135) 8,918 Professional development 2,500 2,230 270 3,347 Office supplies 2,000 1,302 698 960 Telephone and telegraph 1,000 729 271 910 Advertising and public hearings 5,000 5,914 (914) 4,643 Travel and per diem 1,250 725 525 469 Postage 9,200 9,204 (4) 7 eotion - local 15,000 10,203 4,7Yr 9,646 Election - State - - - - Professional services 1,500 - 1,500 1,166 Insurance and bonding 250 - 250 88 Repairs and maintenance 1,000 - 1,000 1,308 Printing and binding 6,000 6,048 (48) 6,137 Publications and dues 600 928 (328) 532 Machinery and equipment - 3,148 (3,148) - 1 &Purni um and fixtures - - - 3,834 Equipment lease /purchase 600 443 157 418 Total clerk's department 115 ,290 143,42 8 133,094 Finance department: Finance director salary 49,500 52,T87 (3,287) 45,380 Cashier salary 22,190 22,691 (501) 22,963 Accountant salary 37,830 37,113 717 34,292 Accounting clerk I salary 23,300 25,257 (1,957) 22,891 Unemployment tax 1,210 1,510 (300) 1,143 Social security tax 8,380 8,765 (385) 8,381 Group insurance 6,300 6,727 (427) 5,810 Worker's compensation 1,010 1,018 (8) 1,098 Termination reserve - - - 3,474 Retirement contribution 15,100 15,050 50 15,745 Professional development 2,500 4,766 (2,266) 3,101 Office supplies 2,500 2,908 (408) 3,949 Telephone and telegraph 2,100 2,214 (114) 2,017 Advertising and public hearings 500 538 (38) 389 Travel and per diem 1,500 393 1,107 1,693 Insurance and bonding 1,450 5,425 (3,975) 5,368 Repairs and maintenance 400 - 400 514 Printing and binding 9,670 8,855 815 2,219 Publications and dues 1,700 1,840 (140) 1,227 Furniture and fixtures 1 902 598 635 Machinery and equipment - - - 2,303 Costs allocated to projects Total finance department - 1 0 (6 913) 191, 6 913 3,20 n (425) 1 1,1 7 (Continued) -31- 3 Schedule 3, Cont. KODIAB ISLAND BOROUGH General Fund Statement of Expenditures and Transfers - Budget and Actual, Continued Community development department: Planning director salary 48,280 1985 2,842 44,737 Zoning officer salary 22,210 14,903 Variance 25,825 Assistant planner salary 38,450 32,187 favorable 1984 Secretary salary Budget Actual (unfavorable) actual Legal department: 1,210 1,212 (2) 923 Court costs and litigation allowance $ 20,000 6,969 13,031 15,847 Telephone and telegraph 2,250 151 2,099 838 Advertising and public hearings 16,000 15,656 344 13,024 Travel and per diem 13,000 10,730 2,270 2,343 Professional services 66,000 43,836 22,164 87,807 Miscellaneous 850 1,297 (447) 969 Coats allocated to projects Total legal department 1.100 996 37,t�i1 (2,19 115,633 739 Assessment department: 6,229 1,371 1,812 Telephone and telegraph Appraiser /arse. - Salary 44,870 46,236 (1,366) 40,968 Assessing al Al salary 25,060 24,225 835 28,524 Assessing cl.ek I salary 22,740 22,521 219 20,358 Appraiser 1 salary 34,320 33,926 394 31,515 Unemployment tax 1,210 1,503 (293) 1,198 Social security tax 8,320 8,452 (132) 8,299 Group insurance 5,660 5,681 (21) 6,348 Worker's compensation 4,020 2,648 1,372 2,751 Termination reserve - - - - Retirement contribution 14,210 1,4,034 176 14,720 Professional development 2,970 3,974 (1,004) 2,272 Office supplies 2,000 938 1,062 1,616 Telephone and telegraph 1,600 1 30 1,758 Advertising and public hearings 1,000 723 277 1,484 Travel and per diem 5,500 4,152 1,348 10,666 Machinery and equipment 3,000 3,032 (32) - Insuranee and bonding 250 - 250 250 Repairs and maintenance 200 - 200 248 Printing and binding 6,500 8,804 (2,304) 1,161 Publications and dues 1,000 1,099 (99) 1,084 Furniture and fixtures 780 435 345 5,227 Boards and committees 500 800 (300) 200 Maps Total assessment department - 11 - T5 - ,71O 55 (55 902 36 028 2 16.675 Community development department: Planning director salary 48,280 45,438 2,842 44,737 Zoning officer salary 22,210 14,903 7,307 25,825 Assistant planner salary 38,450 32,187 6,263 3,868 Secretary salary 16,010 17,856 (1,846) 28,504 Unemployment tax 1,210 1,212 (2) 923 Social security tax 9,030 7,299 1,731 6,931 Group insurance 5,120 4,355 765 3,666 Worker's compensation 5,530 2,620 2,910 2,520 Termination reserve - - - 8,916 Retirement contribution 13,760 12,557 1,203 12,338 Personnel recruitment 1,270 1,382 (112) - Professional development 1,000 996 4 1,965 Office supplies 7,600 6,229 1,371 1,812 Telephone and telegraph 2,000 1,708 292 1,651 Advertising and public hearings 7,800 8,878 (1,078) 7,601 Travel and per diem 4,900 4,858 42 3,334 Professional services 650 631 19 708 Repairs and maintenance 100 89 11 124 Contracted services 16,400 1,625 14,775 - Printing and binding 7,000 8,110 (1,110) 4,109 Publications and dues 950 829 121 1,813 Machinery and equipment - 3,941 (3,941) - Furniture and fixtures 10,400 5,494 4,906 174 Boards and committees 8,400 8,358 42 8,525 Costs 2' •d to projects Total community development department - 228,070 (1 720) 189,835 1 720 3*235 - 170,0411 (Continued) -32- 4 KODIAK ISLAND BOROUGH General Fund Statement of Expenditures and Transfers - Budget and Actual, Continued Schedule 3, Cont. 50 1985 variance favorable 1984 Budget Actual (unfavorable) actual Engineering department: Engineer salary $ 54,540 57,353 (2,813) 50,031 Civil engineer I salary - - - 20,178 Construction inspector salary 45,400 49,340 (3,940) 44,445 Chairman /rodman salary - - - 1,609 Draftsman salary 33,790 27,726 6,064 7,083 Secretary salary 27,390 25,549 1,841 23,862 Unemployment tax 1,210 1,440 (230) 866 Social security tax 9,210 9,353 (143) 8,828 Group insurance 9,980 6,822 3,158 6,929 Worker's compensation 5,530 3,677 1,853 4,388 Termination reserve 1,710 - 1,710 2,505 Retirement contribution 18,110 17,650 460 18,097 Professional development 1,500 979 521 1,419 Office supplies 1,500 1,084 416 2,176 Telephone and telegraph 1,200 953 247 1,255 Advertising and public hearings 100 - 100 986 Travel and per diem 1,500 359 1,141 1,221 Professional services - - - 1,820 Repairs and maintenance 500 - 500 180 Printing and binding 1,800 2,827 (1,027) 1,972 Maps - - - 1,130 Survey and blueprint supplies 2,200 1 299 1 Publications and dues 500 831 (331) 119 Furniture and fixtures 250 - 250 760 Machinery and equipment 1,200 800 400 4,092 Costs allocated to projects Total (45 (92,810) X4761610, (151,857 engineering department 173,920 115,834 513,096 55,194 Health and sanitation: Council on Alcoholism 28,000 28,000 - 28,000 Hospital support 251,000 292,384 (41,384) 321,949 Ambulance service 26,000 26,000 - - Village health services 48,000 48,000 - 48,000 Kodiak Area Native Association 16,000 16,000 - 16,000 Women's Resource Center 22,000 22,000 - 31,000 Kodiak Baptist Mission 60,000 60,000 - 60,000 American Red Cross - - - 1,000 Total health and sanitation 451,000 - 492,3 W (41,3 4 505,949 (Continued) 50 5 RODIAR ISLAND BOROUGH General Fund Statement of Expenditures and Transfers - Budget and Actual, Continued Schedule 3, Cont. Resource management: Manager salary 8,500 1985 (2,323) - Social security tax 650 642 8 - Variance 100 635 (535) - Retirement contribution favorable 1984 (677) - Budget Actual (unfavorable) actual Data services: 100 249 (149) - Office supplies Data processing manager salary $ 42,280 44,792 (2,512) - Data technician III salary 28,800 26,077 2,723 33,260 Data technician I salary 25,500 21,383 4,117 25,983 Programmer salary - 2,452 (2,452) - Unemployment tax 910 1,125 (215) 509 Social security tax 7,070 6,251 819 3,929 Group insurance 7,760 6,085 1,675 2,375 Worker's compensation 760 677 83 523 Termination reserve - - - 2,493 Retirement contribution 10,640 10,035 605 7,537 Professional development 4,700 4,000 700 3,930 Office supplies 500 539 (39) 243 Telephone and telegraph 1,000 1,088 (88) 1,086 Travel and per diem 1,500 1,104 396 1,603 Relocation expenses 4,200 2,689 1,511 - Professional services 3,000 2,607 393 47,577 Repairs and maintenance 25,800 34,169 (8,369) 21,239 Printing and binding 380 236 144 57 Publications and dues 500 603 (103) 284 Furniture and fixtures - - - 437 Machinery and equipment 85,000 84,845 155 164,115 Equipment lease /purchase 6,400 10,291 (3,891) 10,286 Equipment rental - 1,351 (1,351) 1,843 Operating supplies 6,450 4,G26 1,824 6,971 Personnel recruitment - 468 (466) 3,235 Total data services 2 3,450 267 493 4,343 339,515 Resource management: Manager salary 8,500 10,823 (2,323) - Social security tax 650 642 8 - Group insurance 100 635 (535) - Retirement contribution 350 1,027 (677) - Unemployment tax 100 100 - - Worker's compensation 100 249 (149) - Office supplies - 147 (147) - Telephone and telegraph - 97 (97) - Personnel recruitment 2,000 864 1,136 - Travel and per diem 700 387 313 - Professional development - 724 (724). - Furniture and fixtures 2,500 1,165 1,335 - Printing and binding - 23 (23) - Publications and dues - 102 (102) - Total resource management 15,000 (Continued) -34- 6 KODIAK ISLAND BOROUGH General Fund Statement of Expenditures and Transfers - Budget and Actual, Continued Schedule 3, Cont. (Continued) -35- 1985 Variance favorable 1984 Budget Actual (unfavorable) actual General administration: Secretary salary $ 22,210 24,067 (1,857) 22,534 Unemployment tax 300 388 (88) 286 Social security tax 1,550 1,678 (128) 1,553 Group insurance 2,550 1,573 977 2,552 Worker's compensation 250 179 71 202 Termination reserve 240 - 240 - Retirement contribution 2,500 2,694 (194) 2,750 Professional development 5,000 515 4,485 5,435 Office supplies 200 971 (771) 148 Rent 103,140 103,140 - - Street signs and house numbers 30,000 4,091 25,909 - Painting and binding 205 (205) Automobile repairs and maintenance 8,000 6,922 1,078 7,448 Insurance and bonding 20,000 10,906 9,094 5,570 Repairs and maintenance - 245 (245) 1,688 L :d = s15t1t {s Audit find 1�wg �J. y •• lv 7 c 1a 7 7,0 22 , 806 V 44 Capital outlay - automotive - 8,547 (8,547) Capital outlay - machinery and equipment 4,200 5,509 (1,309) Contribution to Chamber of Commerce 6,880 6,880 - 6,880 Contributions 11,170 11,170 v - 27,560 Miscellaneous - 374 J� (374) (13,479) Pesonnel recruitment - 226 (226) - Bad debt expense Total general administration 750 9 3,940 71589 PP4,159 (6.839) 39,781 - 93.977 Building inspector's department: Building official salary 45,980 47,741 (1,761) 42,735 Unemployment tax 300 386 (86) 150 Social security tax 2,650 2,753 (103) 2,529 Group insurance 1 1,916 (6) 1,916 Worker's compensation 1,760 1,214 546 1,572 Retirement contribution 5,170 5,173 (3) 5,216 Office supplies - - - 60 Telephone and telegraph 400 509 (109) 123 Advertising and public hearings 500 - 500 - Travel and per diem 2,500 - 2,500 153 Printing and binding 500 43 457 363 Contracted services 52,520 250 52,270 - Continuing education 1,600 3,908 (2,308) 1,320 Publications and dues Total building inspector's department 1 000 116,790 957 43 51,940 588 56,725 Civil defense - printing and binding 5 4,464 536 - (Continued) -35- 7 KODIAK ISLAND BOROUGH General Fund Statement of Expenditures and Transfers - Budget and Actual, Continued Schedule 3, Cont. Education support: Library 36,000 1985 - 35,000 Community college 15,000 15,000 Variance 10,000 Village libraries - - favorable 1984 Total education support Budget Actual (unfavorable) actual Facilities coordinator department: - - 12,240 Managerial salaries $ 48,280 48,296 (16)' 13,000 Construction inspectors salaries 38,810 - 38,810 43,567 Secretary salary 25,050 26,754 (1,704) 26,132 Unemployment tax 910 805 105 593 Social security .tax 7,030 4,713 2,317 5,175 Group insurance 5,980 4,46T 1,513 5,027 Worker's compensation 3,770 1,498 2,272 2,576 Termination reserve 1,240 - 1,240 5,300 Retirement contribution 12,600 8,376 4,224 10,311 Office supplies 1,500 1,495 5 1,T53 Telephone and telegraph 6,000 3,359 2,641 4,567 Advertising and public hearings 500 547 (47) - Travel and per diem 1,000 100 900 1,379 Repairs and maintenance 500 68 432 134 Personnel recruitment - 179 (179) - Printing and binding 1.000 2,098 ( 1,098) 1,004 Publications and dues 250 141 109 355 Machinery and equipment - 2,762 (2,762) - Continuing education 3,550 143 3,407 1,967 Professional services 10,000 - 10,000 22,272 Costs allocated to projects Total facilities (167,970 (95 840) (72 130) - (143,901 coordinator department - 9,961 (q;991 1,211 Education support: Library 36,000 36,000 - 35,000 Community college 15,000 15,000 - 10,000 Village libraries - - 12,000 Total education support 51,000 51,000 57,000 Other - PERS unfunded liability - - 12,240 Total expenditures 2,383,770 2,220,924 162,846 2,108,966 Transfers to other funds: Special Revenue Funds: Mental Health Center 55,000 55,000 - - Education 1,517,500 1,377,345 140,155 1,478,912 Buildings and grounds 23,550 223,550 (200,000) 110,710 Debt Service Funds - School Bonds 800,000 856,759 (56,T59) 22T,350 Capital Projects Funds: State Capital Grants 180,000 180,000 - 15,000 State Municipal Aid Program - - - 25,000 Various Borough Projects 200,000 - 200,000 - 1980 and 1985 School Bond Improvements - - - 714,943 Hospital Improvements _ _ _ T4,71T State School Construction - - 11,7,9.1100 Total transfers to other funds 2,T�,050 2. 9�2, 54 - rT39�i 2,664,542 $ 5,159,820 4,913,578 246,242 4,773,508 -36- SPECIAL REVENUE FUNDS These funds are used to account for revenues from specific taxes or other earmarked revenue sources which by law are designated to finance particular functions or activities of government. LAND SALES FUND The Land Sales Fund accounts for the disposal of Borough -owned lands. The proceeds of land disposals are generally limited to management of Borough lands. FIRE AND ROAD SERVICE DISTRICTS These funds account for the activities related to service districts established by the voters within the district to provide road services and fire protection within the service area. The primary sources of revenues are property taxes and state - shared revenues directly related to road services or fire protection within the service area. FEDERAL REVENUE SHARING This fund accounts for the receipt and expenditure of money received under the Federal Revenue Sharing Program. MENTAL HEALTH CENTER This fund accounts for the operations of a mental health center financed by a State of Alaska contract and user fees. ENERGY FUND This fund accounts for State of Alaska and Federal grants related to the effects of coastal energy development impacts. Expenditures of these grants are for comphrehensive plans, coastal sensitivity analysis, outer continental shelf impact analysis and ordinance update. DAY CARE FUND This fund accounts for a State of Alaska grant to finance day care for children of low- income, employed families. EDUCATION This fund accounts for the operations of the Kodiak Island Borough School District. The School District is a component unit of the Kodiak Island Borough. BUILDINGS AND GROUNDS This fund accounts for the operations and maintenance of certain buildings and grounds owned by the Borough which are jointly shared with the City of Kodiak, the Kodiak Island Borough School District, the State of Alaska, the Kodiak Island Borough and certain other not - for - profit community organizations. KODIAK ISLAND BOROUGH Special Revenue Funds Combining Balance Sheet June 30, 1985 with comparative totals for 1984 Assets Equity in central treasury Time certificates of deposit Other cash balances Receivables: State of Alaska Federal government Land sales contracts, due within one year Accrued interest Other Allowance for doubtful receivables Due from other funds Inventories Land sales contracts receivable, due after one year Liabilities and Fund Balances Liabilities: Bank overdraft Advance from central treasury Accounts payable Salaries payable Payroll taxes accrued and withheld Employee benefits accrued and withheld Other accrued liabilities Customer deposits Deferred and unrealized revenues Due to other funds Total liabilities Fund balances: Reserved for encumbrances Reserved for fuel inventory Unreserved: Designated for subsequent year expenditures Undesignated Total fund balances - Fire and Road 164 - Fire Monashka Land Sales Area 1 Bells Flats AM $ 431,522 147,728 17,613 12,053 2,240,384 _ _ _ 227,307 2,644,846 41,540 - 2,407,539 - - - $ 5,3492 14T,728 1T t2 Liabilities and Fund Balances Liabilities: Bank overdraft Advance from central treasury Accounts payable Salaries payable Payroll taxes accrued and withheld Employee benefits accrued and withheld Other accrued liabilities Customer deposits Deferred and unrealized revenues Due to other funds Total liabilities Fund balances: Reserved for encumbrances Reserved for fuel inventory Unreserved: Designated for subsequent year expenditures Undesignated Total fund balances - 510 164 - - 3,2T6 - - 300 - 2,644,846 _ - _ 2, n 4, 140,288 325 - - 2 563 158 143,617 1T, 149 12,053 2, 703.44 143,942 17,149 12,053 $ 5,348,292 14T,T28 17,613 12,053 Schedule 4 215,375 - - Federal and - 4,024 - - _ 4,024 Service Districts State Grant Programs 92 24,591 - 18,64., 138,762 Road Federal Mental - - - Buildings - - 531,305 - Revenue Health - - - and Totals District 1 Bells Flats Sharing Center Energy Day Care Education Grounds 1985 1984 43,848 53,889 119,542 96,776 - 2,067 1,948,130 167,948 3,041,116 2,587,679 - - - - - - - - 2,240,384 1,950,000 - - - 100 - - 148,573 - 148,673 27,258 - - - 17,742 4,024 16,922 401,109 - 439,797 58T,363 - - 30,947 - - - - - 30,947 55,036 - - - - - - - - 227,307 187,276 - - - - - - - - 41,540 25,524 - - - 101,765 - - 3,473 - 105,238 74,510 - - - (15,500) - - - - (15,500) (12,008) - - - 50,170 - - 110,763 - 160,933 - - - - - - - 221,486 - 221,486 137,771 - - - 2,407,539 2.203.724 43 5 150,489 251,053 4,024 2,833 16� 9,049,460 7,82 215,375 - - - - 4,024 - - _ 4,024 501 - - 92 24,591 - 18,64., 138,762 9,300 192,567 132,357 - - - - - - 531,305 - 531,305 465,241 - - - - - - 154,724 - 154,724 133,281 - - - 41,291 - - 384,101 - 428,668 427,095 - - - - - - 198,935 - 198,935 241,868 - - - - - - - - 300 300 - - - - - - 35,435 - 2,680,281 2,402,259 - - - - - 92 �5,$g2 1� g 375 T78 1, 19,0 0 - 9�, 0000 375 778 4 56b,5ts2 275, 787 4,294 064 - - - 690 - _ 134,431 27,705 303,439 141,385 - - - - - - 72,000 - 72,000 - 808,063 - 808,063 1,238,813 43 848 53 889 53$$9 150,397 150 , 397 184 481 1 5 ,171 - 341 - _T 1, 0�1 1974 130 443 15,1 3 299 376 42 - 7$ 2 149 871 3,530,69 = , , 4 5� 15� 251,053 4,024 18 2,833,534 167,948 9,049,460 7,82� -37- MDIAR ISLAND BOROUGH Special Revenue Funds Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Year ended June 30, 1985 with comparative totals for 1984 Fire and Road Borough /City Fire Monashka Land Sales Joint Census Area 1 Bells Flats BaL Revenues: Property taxes ; - - 106,277 9,866 16,547 State sources 1,297 - 24,016 2,170 8,363 Federal sources - Land sale proceeds received 593,593 - - - - Licenses, permits, fees and other local revenues 112,634 - - 6,000 _ Investments and property Total revenues 240,573 9413,097 - 7 633 13q �,03�i - _ Expenditures: Capital improvements: General 10,585 - 21,908 14,864 _ Service district maintenance _ Plawni� and oo unity development 9,943 Health and sanitation - Education support General services - 74,025 10,355 Total expenditures 20,52 - 95,933 25,219 1778 Excess (deficiency) of revenues over expenditures 927,569 - 41,993 (7,183 7,252 Transfers from other funds - - - 15,000 - Transfers to other funds Net transfers (15, 000) 15,000 - - 15,000 Excess (deficiency) of revenues and transfers from other funds over expenditures and transfers to other funds 912,569 - 41,993 7,817 7,252 Fund balances at beginning of year 1,790,877 7,605 101,949 9,332 4,801 Equity transfers to General Fund - (7,605) - - - Ad�ustment to reserve for fuel inventory - - - - Fund balances at end of year $ 2,703,446 - 143,942 17,149 12,053 Schedule 5 47,357 142,025 111 20,016 45 Federal and _ _ _ '07, Service Districts - State Grant Programs - 204,012 - - - 213,955 Road Federal Mental 112,6755 25 Buildings - 214,957 - Dis- 1,159,337 Revenue Health - and Totals trict 1 Bells Flats Sharing Center En_.SL' Day Care Education Grounds 1985 1984 - 9,856 - - - - - - 142,546 136,026 16,367 42,230 - 254,900 204,012 215,298 19,453,737 - 20,222,390 16,495,142 - - 129,916 - - - 732,306 - 862,222 1,035,747 - - - - - - - - 593,593 636,555 - 5,000 - 468,785 - - 131,559 - 723,978 723,864 X67 57,086 6.170 136.086 27 823 - 751,50 204,012 215,2 20,3 - 1702 301 816 301, 1 584 015 23,1 165 462 19,192,79 47,357 142,025 111 20,016 45 _ _ _ _ '07, - - - - 204,012 - - - 213,955 38,937 - - 112,6755 25 831, - 214,957 - - 1,159,337 727,740 - - 79,276 - - - 16,041,597 - 16,120,873 15,198,859 11 , 17 29 31,000 2 6 7,9 - 01 38 1,755 - 20,012 211,957 351,023 351,023 466 403 338 499 1 Wjt 1,971 16,041,597 1 ,1� 1,720 27J70 ( 131,815 ? (80,247 341 4,276,005 (49,207 5,013,598 2.640,885 - - - 55,000 - - 1,745,560 258,550 2,074,110 1,589,622 ( 15,000 ) ( 15,000 ) - - - ' (6, 069,294) ( 100,000 ) (6,199,294 (3,170,242 - 55,000 4,323,734 158,550 (4,125,184 (1,580,620 1,720 12,170 (131,815) (25,247) - 341 (47,T29) 109,343 888,414 1,060,265 42,128 41,719 282,212 210,418 - - 990,223 48,805 3,530,069 2,469,804 - - - - - - - - (7,605) - - - T2,000 72,000 113,848 53,889 150,39T 185,171 - 341 1,014,494 158,148 4,482,878 3,530,069 -38- KODIAK ISLAND BOROUGH Special Revenue Funds Land Sales Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 Revenues: State sources Land sales proceeds received Penalty and interest Recording fees Permit fees Investment income Gravel sales Total revenues Expenditures: Capital improvements - general: Survey and appraisal Improvements Support costs Planning and community development: Land management Land disposal grant Total expenditures Excess of revenues over expenditures Transfers to General Fund Excess of revenues over expenditures and transfers Fund balance at beginning of year Fund balance at end of year -39- 1985 Variance favorable 1984 Budget Actual (unfavorable) actual $ - 1,297 1,297 - 745,400 593,593 (151,807) 636,555 1,600 631 (969) 140 - - - 255 15,000 13,703 (1,297) 15,000 125,000 240,573 115,573 137,367 30,000 98,300 68,300 27 157 917,000 948,097 31,097 816!474 212,803 10,285 202,518 27,902 - - - 70,361 11,200 300 10,900 527 677,997 16,272 661,725 11,530 - (6,329 6,329 12,542 902,000 20,528 881,472 122,862 15,000 927,569 912,569 693,612 15,000 15,000 - - - 912,569 912,569 693,612 1,790,877 1,790,877 - 1,097,265 $ 1,790,877 2,703,446 912,569 1,790,877 -39- Schedule 7 KODIAK ISLAND BOROUGH Special Revenue Funds Borough /City Joint Census Statement of Revenues, Expenditure, Transfers and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 Revenues Expenditure - general services - professional services Deficiency of revenues over expenditure Fund balance at beginning of year Equity transfers to General Fund Fund balance at end of year -40- 1985 Variance favorable 1984 Budget Actual (unfavorable) actual - - 6,790 - - - 6,790 7,605 7,605 - 14,395 - 7,605 ( 7,605 ) $ 7 605 -� ( 7 9 605 7 -40- Schedule 8 KODIAK ISLAND BOROUGH Special Revenue Funds Fire and Road Service Districts - Fire Area 1 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 -41- 1985 Variance , favorable f 1984 Budget Actual (unfavorable) actual Revenues: Property 'ayes $ 104,990 106,277 1,287 103,647 State shared revenue 42,000 24,016 (17,984) 88,937 Licenses, permits, fees and other local revenues - - - 32 Investments and property 7,633 7,633 2,975 Total revenues 146,990 137,926 (9,064 195,591 Expenditures: Capital improvements: General 23,000 21,908 1,092 43,235 Contracted services 30,000 - 30,000 40,000 General services 102,990 83,025 19,965 56,803. 155,990 104,933 51,057 140,038 Less charged to federal revenue sharing 9,000 9,000 Net expenditures 146,990 95,933 51,057 140,038 Excess of revenues over expenditures - 41,993 41,993 55,553 Fund balance at beginning of year 101,949 101,949 - 46,396 Fund balance at end of year $ 101,949 143,942 41,993 101,949 -41- Schedule 9 KODIAK ISLAND BOROUGH Special Revenue Funds Fire and Road Service Districts - Fire Bells Flats Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 -42- 1985 Variance favorable 1984 Budget Actual (unfavorable) actual Revenues: Property taxes $ 9,780 9,866 86 8,527 State shared revenue 11,550 2,170 (9,380) 11,550 Licenses, permits, fees and other local revenues 6,000 6,000 - 4,$00 `total revenues 27,330 18,036 (9,294 24,877 Expenditures - general services: 1,460 223 1,237 398 Office supplies Telephone and telegraph 440 344 96 368 Insurance and bonding 6,150 9,271 (3,121) 5,529 Repairs and maintenance 2,800 880 1,920 1,104 Utilities 4,200 4,393 (193) 4,912 Capital outlay 15,000 14,864 136 2,220 Other 7,210 377, 0 4,244 34,219 2 3,041 108 39 Less charged to federal revenue sharing 9,000 9,000 - Net expenditures 28,260 25,219 3,041 14,639 Excess (deficiency) of revenues over expenditures (930) (7,183) (6,253) 10,238 Transfers from Bells Flats Roads Special Revenue Fund 15,000 15,000 - - Excess (deficiency) of revenues and transfers from other funds over expenditures 14,070 7,817 (6,253) 10,238 Fund balance (deficit) at beginning of year 9,332 9,332 - (906 Fund balance at end of year $ 233,402 17149 (6,253) 9,332 -42- Schedule -10 KODIAK ISLAND BOROUGH Special Revenue Funds Fire and Road Service Districts - Road Monashka Bay Statement of Revenues, Expenditure and Changes in Fund Balance (Deficit) - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 Revenues: Property NQACJ State shared revenue Total revenues Expenditure - Service district maintenance Less charged to federal revenue sharing Net expenditures Excess (deficiency) of revenues over expenditures Fund balance (deficit) at beginning of year Fund balance at end of year -43- 1985 Variance favorable 1984 Budget Actual (unfavorable) actual $ 16,500 16,547 47 15,325 3,850 20,350 8 363 2 4 513 4,560 5,000 20,325 r 29,350 26,658 2,692 10,599 9,000 20,350 9,000 17658 - 2, 9 - 1 - 7,252 7,252 9,726 4,801 4,801 - (4,925 $ 4 12,053 7 4,801 -43- KODIAK ISLAND BOROUGH Special Revenue Funds Fire and Road Service Districts - Road District 1 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 -44- 1985 Variance favorable 1984 Budget Actual (unfavorable) actual Revenue from State shared revenue $ 8,190 16,367 8,177 18,720 Expenditures - capital improvements - service district maintenance: Salaries 720 - 720 225 Contracted services 52,640 23,453 29,187 22,162 Other 200 194 6 223 53,5 23,E 29,913 22,610 Less charged to federal revenue sharing 9,000 9,000 - Net expenditures 44,560 14,647 29,913 22,610 Excess (deficiency) of revenues over expenditures (36,370) 1,720 38,090 (3,890) Fund balance at beginning of year 42,128 42,128 - 46,018 Fund balance at end of year $ 5,758 43,848 38,090 42,128 -44- Schedule 12 KODIAK ISLAND BOROUGH Special Revenue Funds Fire and Road Service Districts - Road Bells Flats Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 Revenues: Property taxes State shared revenue Licenses, permits, fees and other local revenues Total revenues Expenditures - capital improvements - service district maintenance: Staff salaries Advertising and public hearings Contracted services Contingencies Less charged to federal revenue sharing Net expenditures Excess of revenues over expenditures Transfers to Bells Flats Fire Special Revenue Fund Excess (deficiency) of revenues over expenditures and transfers Fund balance at beginning of year Fund balance at end of year 720 - 500 194 44,500 38,722 550 - 46,270 38,916 720 306 5,778 550 214 173 32,255 32, 642 9,000 9 000 37,270 29�b 2,300 27,170 15,000 15,000 (12,700) 12,170 41,719 41,719 $ 29,019 53,889 -45- 7,354 7,354 24,870 24,870 24,870 3232 ,T42 13,385 15,000 (1,615) 43,334 41 ,719 1985 Variance favorable 1984 Budget Actual (unfavorable) actual $ 9,770 9,856 86 8,527 24,800 42,230 17,430 32,500 5,000 5,000 5,000 39,570 57,086 17,516 46,027 720 - 500 194 44,500 38,722 550 - 46,270 38,916 720 306 5,778 550 214 173 32,255 32, 642 9,000 9 000 37,270 29�b 2,300 27,170 15,000 15,000 (12,700) 12,170 41,719 41,719 $ 29,019 53,889 -45- 7,354 7,354 24,870 24,870 24,870 3232 ,T42 13,385 15,000 (1,615) 43,334 41 ,719 Schedule 13 KODIAK ISLAND BOROUGH Special Revenue Funds Federal and State Grant Programs - Federal Revenue Sharing Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 mI-M 1985 Variance favorable 1984 Budget Actual (unfavorable) actual Revenues: Federal shared revenue entitlement payments $ - 129,916 129,916 216,062 Investment income 6,500 6 170 (330 12,370 Total revenues 6,500 13,086 129,586 228,432 Expenditures: _ Health and sanitation contributions: Women's Resource Crisis Center 14,000 14,000 - - Council on Alcoholism 22,000 22,000 - 34,000 Small World Center 19,324 19,324 - 5,000 Senior citizen support 14,000 14,000 - 14,000 Health Center 1 1,801 99 1,355 American Red Cross 2,500 2,500 - 1,500 Mental Health Center 15,000 15,000 - Kodiak ambulance service 24,000 24,000 - Education contributions: Kodiak Community College 24,000 24,000 - 15,000 Village libraries 18,000 18,000 - 6,000 Chiniak liabrary 9,700 9,700 - Head Start Program 3,576 3,576 - 4,000 City library 24,000 24,000 - 25,000 General services: Kodiak Historical Society 3,500 3,500 - Alaska Legal Services 5,000 5,000 - Kodiak Art Council 3,500 3,500 - Karluk IRA Council ✓14,000 14,000 - Bells Flats road district 9,000 9,000 - Road Service Monashka Bay 9,000) 9,000 - Bells Flats Fire District 9,000/ 9,000 - Road Service District 1 9,000 9,000 - Fire Service District 1 9,000 9,000 - KMXT Public Radio 5,000 5,000 - 5,000 Professional services - - - 2,200 Total expenditures 268,000 267,901 99 113,055 (Continued) mI-M 2 KODIAK ISLAND BOROUGH Special Revenue Funds Schedule 13, Cont. Federal and State Grant Programs - Federal Revenue Sharing Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual, Continued Excess (deficiency) of revenues over expenditures Fund balance at beginning of year Fund balance at end of year 1985 Variance favorable 1984 Budget Actual (unfavorable) actual $ (261,500) (131,815) 282,212 282,212 $ 20,712 150,397 129,685 115,377 166 , 835 129,685 282,2 -47- KODIAK ISLAND BOROUGH Special Revenue Funds Federal and State Grant Programs - Mental Health Center Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 1985 Variance favorable 1984 Budget Actual (unfavorable) actual Revenues: State sources: Grant Shared revenue Organization user fees Individual user fees Rental fees Interest Miscellaneous Total revenues Expenditures - health and sanitation - mental health program: Personnel Travel Facility Supplies Equipment Other Bad debts Less amount paid by Federal revenue sharing Net expenditures Excess (deficiency) of revenues over expenditures Transfers from other funds Excess (deficiency) of revenues and transfers from other funds over expenditures Fund balance at beginning of year Fund balance at end of year Schedule 14 $ 254,900 254,900 359,771 302,966 (56,805) 126,150 163,685 37,535 12,000 12,000 - 14,386 15,823 19437 3,000 2,134 (866 770,207 751,508 ( 18,699 } 638,159 631,763 6,396 17,500 11,713 5,787 46,500 47,265 (765) 53,718 46,722 6,996 11,800 7,354 4 84,100 90,847 (6,747) 11,091 ( 11,091 ) 51,777 846,755 5,022 15 15,000 836,777 831,755 5,022 (66,570) (80,247) (13,677) 55,000 (11,570) 210,418 $ 198,848 -48- 220,200 30,000 250,271 120,980 12,000 12,750 5,708 651,909 512,205 19,556 52,829 36,305 10,115 40,875 671,885 671,885 (19,976) 55,000 (25,247) 210,418 185,171 (13,677) (13,677) (19,976) 230,394 210,418 Schedule 15 KODIAK ISLAND BOROUGH Special Revenue Funds Federal and State Grant Programs - Energy Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 Revenues: State of Alaska, Department of Commerce and Economic Development grants Community and Regional Affairs Grant Coastal sensitivity analysis Karluk comprehensive plan Larson Bay - Ouzinkie comprehensive plan Federal Coastal Energy Impact Program grant Total revenues Expenditures - planning and community development: Outer continental shelf impact analysis Coastal sensitivity analysis Karluk comprehensive plan Larson Bay- Ouzinkie comprehensive plan Ordinance update Total expenditures Excess of revenues over expenditures Fund balance at beginning of year Fund balance at end of year 1985 Variance favorable 1984 Budget Actual (unfavorable) actual $ - - - 8,487 40,000 8,008 (31,992) - 140,000 139,006 (994) - 20,000 19,998 (2) _ 37,000 37,000 - _ - - - 6,378 237,000 204,012 ( 32,988 ) 14,865 14,378 140,000 139,006 994 - 20,000 19,998 2 445 37,000 37,000 - 42 40,000 8,008 31,992 - 237,000 204,012 32,988 14,W -49- Schedule 16 KODIAK ISLAND BOROUGH Special Revenue Funds Federal and State Grant Programs - Day Care Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 Revenues from State of Alaska Expenditures - day care payments Excess of revenues over expenditures 1985 Variance favorable 1984 Budget Actual (unfavorable) actual $ 194,785 215,298 20,513 188,724 194,785 214,957 ( 20,172 ) 188,724 - 341 341 - Fund balance at beginning of year - Fund balance at end of year $ - 341 341 -50- Schedule 17 KODIAK ISLAND BOROUGH Special Revenue Funds Education Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 -5t- 1985 Variance favorable 1984 Budget Actual (unfavorable) actual Revenues: State sources $ 19,156,672 19,453,737 297,065 16,079,748 Federal sources 924,049 732,306 (191,743) 813,307 Food sales 76,398 91,552 15,154 64,393 Student activities 10,500 9,378 (1,122) 6,101 Other local revenues 18,400 20,186,019 2 0,3602 30,629 12 229 1 t 5 3 20 865 16,984 Total revenues Expenditures: Regular instruction 5,693,174 5,526,003 167,171 5,311,428 Vocational education instruction 932,183 878,134 54,049 855,800 C.- rre:pondence study instruction 161,988 151,333 10,655 149,170 Special education instruction 1,149,360 1,055,557 93,803 1,027,634 Bilingual /bicultural education instruction 157,258 146,788 10,470 157,551 Supporting services - pupils 841,606 804,901 36,705 703,408 Supporting services - instruction 1,108,576 1,038,499 70,077 845,716 General support services 2,219,705 2,188,784 30,921 2,074,235 Operation and maintenance 3,287,898 3,157,037 130,861 2,979,398 Pupil transportation 413,180 410,183 2,997 389,386 Food services 296,251 286.040 10,211 230,939 Community services 119,345 112,466 6,879 120,286 Nonprogrammed charges - (575) 575 2,454 Student activities 371,663 286 85,216 241,965 Facilities acquisition and construction 16:7 5 - 16,041,597 - 710,590 59 483 15,1 Total expenditures Excess of revenues over expenditures 3,433,832 4,276,005 842,173 1,835,555 Transfers from other funds 1,838,765 1,745,560 (93,205) 1,478,912 Transfers to other funds (5 756 645) (6,069,294 ( 312,649 ) (3 155 242) Net transfers 3,917,880 (4,323,734 ( 405,854 ) (t, T ,330 Excess of revenues and transfers from General Fund over expenditures and transfers to School Bonds Debt Service Fund (484,048) (47,729) 436,319 159,225 Fund balance at beginning of year 990,223 990,223 - 830,998 Adjustment to reserve for fuel inventory 72,000 72,000 - Fund balance at end of year $ 506,175 1,014,494 508,319 990,223 -5t- Schedule 18 KODIAK ISLAND BOROUGH Special Revenue Funds Buildings and Grounds Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 Revenues: Fines and forfeitures Rental Sales of property and equipment Interest income Total revenues Expenditures: Borough building Apartments Refuse collection and disposal Parks operation and maintenance Total expenditures Excess (deficiency) of revenues over expenditures Transfers from General Fund Transfers from Capital Projects Funds Total transfers from other funds Transfers to Capital Projects Fund Excess of revenues and transfers from other funds over expenditures Fund balance at beginning of year Fund balance at end of year 374,460 51,800 15,000 4 000 445!260 (158,550) 223,550 35,000 258,550 100,000 48,805 $ 48,805 289,120 49,812 11,051 1.040 351,023 (49,207) 223,550 35,000 258,550 100,000 109,343 48,805 158,148 85,340 1,988 3,949 2,960 94,237 109,343 109,343 109,343 209,422 28,363 14,340 942 253 (61,905 110,710 110,710 48,805 -52- 48 �e 1985 Variance favorable 1984 Budget Actual (unfavorable) actual $ - - - 230 284,710 282,913 (1,797) 188,432 2,000 - (2,000) 2,500 - 189903 18,903 7 2 - ST 7 301,816 15,106 191,162 374,460 51,800 15,000 4 000 445!260 (158,550) 223,550 35,000 258,550 100,000 48,805 $ 48,805 289,120 49,812 11,051 1.040 351,023 (49,207) 223,550 35,000 258,550 100,000 109,343 48,805 158,148 85,340 1,988 3,949 2,960 94,237 109,343 109,343 109,343 209,422 28,363 14,340 942 253 (61,905 110,710 110,710 48,805 -52- 48 �e DEBT SERVICE FUNDS These funds were established to finance and account for the payment of inter- est and principal on all general obligation debt, serial and term, other than that payable exclusively from special assessments and revenue debt issued for and serviced by a governmental enterprise. Formerly called a Sinking Fund. HOSPITAL DEBT SERVICE FUND This fund accounts for the accumulation of moneys for payment of principal and interest on $300,000 of Hospital term bonds maturing May 1, 1987. SCHOOL DEBT SERVICE FUND This fund _accounts for the accumulation of money for payment of principal, interest and fiscal agent fees related to serial bond debt incurred by the Borough to contruct schools. OTHER DEBT SERVICE FUND This fund accounts for the accumulation of money to pay the long -term portion of the Borough's vested accrued annual leave. Schedule 19 KODIAK ISLAND BOROUGH Debt Service Funds Combining Balance Sheet Year ended June 30, 1985 with comparative totals for 1984 Assets Cash and investments: Equity in central treasury Cash with fiscal agent Temporary cash investments Accrued interest receivable Hospital School Totals Bond Bonds Other 1985 1984 $ 11,816 - 56,759 68,575 173,049 - 2,758,652 - 2,758,652 2,815,068 300,000 4,000,000 - 4,300,000 3,300,000 745 83,095 - 83,840 59,738 $ 312,561 6,841 ,747 56,759 7,211 ,067 6,347,855 Liabilities and Fund Balances Advance from central treasury Liabilities - accounts payable Fund balances - designated for subsequent year expenditures 90,502 - 90,502 - - - - 47,559 312,561 6,751,245 56,759 7,120,565 6,300,296 $ 312,561 6 56,759 7,211,067 6 -53- Schedule 20 KODIAK ISLAND BOROUGH Debt Service Funds Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Year ended June 30, 1985 with comparative totals for 1984 Revenues from interest income Expenditures - debt service: Principal Interest Fiscal agent fees Total expenditures Excess (deficiency) of revenues over expenditures Transfers from other funds: General Fund Education Special Revenue Fund 1980 School Bond Improvements Capital Projects Fund Hospital Debt Service Fund Transfers to School Debt Service Fund Net transfers Excess of revenues and transfers over expenditures Fund balances at beginning of year Fund balances at end of year Hospital. School Totals Bond Bonds Other 198 1984 $ 32,990 595,927 - 628,917 503,349 - 4,210,000 - 4,210,000 1,750,000 14,625 1,969,846 - 1,984,471 1,489,362 176 123,892 - 124,068 66,538 14,801 6,303,738 - 6,318,539 3,305,900 18,189 ( 5,707,811 ) - ( 5,689,622 ) ( 2,802,551 ) - 800,000 56,759 856,759 227,350 - 5,653,132 - 5,653,132 3,155,242 - - - - 3,000,000 - 10,250 6,463,39 - 10,250 6,520,141 6,382,592 - 56,759 10,250 (10,250 - ,46382 � 3 - 56,759 10,250 ,50� 91 6,382,592 7,939 755,571 56,759 820,269 3,580,041 304,622 5,995,674 - 6,300,296 2,720,255 $ 312,561 6,751,245 56 7,120,56 6,300,296 -94- Schedule 21 KODIAK ISLAND BOROUGH Debt Service Funds Hospital Bond Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 with comparative totals for 1984 -55- 1985 Variance favorable 1984 Budget Actual (unfavorable) actual Revenues from interest income $ 25,000 32,990 7,990 29,995 Expenditures -,debt service: Interest 14,630 14,625 5 14,625 Fiscal agent fees 120 176 (56 163 Total expenditures 14,750 14,801 (51 14,788 Excess of revenues r over expenditures 10,250 18,189 7,939 15,207 Transfers to School Debt Service Fund 10,250 10,250 - Excess of revenues over expenditures and transfers - 7,939 7,939 15,207 Fund balance at beginning of year 304,622 304,622 - 289,415 Fund balance at end of year $ 304,622 s 312,561 � 7,939 ai� 304,622 amass -55- Schedule 22 KODIAK ISLAND BOROUGH Debt Service Funds School Bonds Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 With comparative totals for 1984 1985 Variance favorable Budget Actual (unfavorable) Revenues from interest income $ 350,000 595,927 245,927 Expenditures - debt service: Principal Interest Fiscal agent fees Total expenditures Excess (deficiency) of revenues over expenditures Transfers from other funds: General Fund Education Special Revenue Fund Hospital Debt Service Fund 1980 School Bond Improvements Capital Projects Fund Total transfers from other funds Excess (deficiency) of revenues and transfers from other funds over expenditures 5,210,000 2,652,700 137,300 8,000,000 800,000 5,290,380 10,250 ( 7,650,000 ) ( 5,707,811 ) 1,942,189 ( 2,817,758 ) 4,210,000 1,969,846 123,892 6,303,738 800,000 5,653,132 10,250 1,000,000 682,854 13,408 1,696,262 362,752 6,100,630 6,463,382 362,752 1984 actual 473,354 1,750,000 1,474,737 66,375 3,291,112 227,350 3,155,242 3,000,000 6,382,592 (1,549,370) 755,571 2,304,941 3,564,834 Fund balance at beginning of year 5,995,674 5,995,674 - 2,430,840 Fund balance at end of year $ 4,446,304 6,751,245 2,304,941 5,995,674 _ " -56- Schedule 23 KODIAK ISLAND BOROUGH Debt Service Funds Other Debt Service Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual Year ended June 30, 1985 Revenues Expenditures Excess of revenues over expenditures Transfers from General Fund Excess of revenues and transfers from General Fund over expenditures Fund balance at beginning of year Fund balance at end of year Variance favorable Budget Actual (unfavorable) 56,759 56,759 56,759 56,759 $ 56,759 56 ,759 -57- CAPITAL PROJECTS FUNDS This fund was created to account for all resources used for the acquisition of designated fixed assets by a governmental unit except those financed by special assessment and enterprise funds. LOCAL SERVICE ROADS AND TRAILS This fund accounts for money received from the State of Alaska for the construction of local service roads and trails. STATE SCHOOL CONSTRUCTION This fund accounts for money received from the State of Alaska for the construction of schools. VARIOUS BOROUGH PROJECTS This fund accounts for a variety of capital projects not accounted for in another fund. SCHOOL BOND IMPROVEMENTS This fund accounts for the proceeds of the Borough general obligation bonds issued for the construction of schools. SCHOOL EQUIPMENT AND FURNISHINGS This fund accounts for money transferred to the Kodiak Island Borough School District from other Capital Projects Funds for the acquisition of school equipment and furnishings. STATE CAPITAL GRANTS This fund accounts for capital grant moneys received from the State of Alaska for the construction of various projects. STATE MUNICIPAL AID PROGRAM This fund accounts for various projects financed by the State of Alaska, Municipal Aid Program. Schedule 24 KODIAK ISLAND BOROUGH Capital Projects Funds Combining Balance Sheet June 30, 1985 with comparative totals for 1984 State Municipal Totals Aid Program 1 985 1984 98,770 837,690 397,831 - 7,623,132 13,029,535 - 29,042 133,191 - 155,942 211,902 - 215.758 275.787 98.770 8.861,564_ 14.048,246 Liabilities and Fund Balances Local School Service Various Equipment State Roads State School Borough School ,Bond and Capital Assets and Trails Construction Projects Improvem Furnishings Grants Cash and investments: 4,369 183,816 4,722 Retainages payable - - Equity in central treasury ; 41,155 243,757 140,058 - - 313,950 Temporary cash investments - - - 4,998,132 - 2,625,000 Receivables: State of Alaska - - - 25,042 - 4,000 Accrued interest - - - 118,550 - 37,392 Due from other funds subsequent year expenditures - 243.757 215,758 1,927, 201 171 41,155 243,757 1 40,058 5,141, 215,758 2,9842 State Municipal Totals Aid Program 1 985 1984 98,770 837,690 397,831 - 7,623,132 13,029,535 - 29,042 133,191 - 155,942 211,902 - 215.758 275.787 98.770 8.861,564_ 14.048,246 Liabilities and Fund Balances Liabilities: Advance from central treasury - - - 362,: 165 - - - Accounts payable - - 18,843 - 4,369 183,816 4,722 Retainages payable - - - 454,563 - 6,778 - Deferred revenue Total liabilities 5 622 5� - - _ - I� 1 3,5 - - 2 564 248 2,7 6 644e07722 btf.794 Fund balances (deficits): Reserved for encumbrances - - 177,761 2,397, 10,218 1,383,098 - Unreserved - designated for subsequent year expenditures 35,533 243.757 (56,546 1,927, 201 171 ( 1, 157,598 ) 29 976 Total fund balances 35,533 243.757 121,215 4 324,1 21� 225,500 29 41,155 243,757 1 40,058 5,141, 72 �� ,s 215,758 ago 2,980,342 � 98. a e 362,365 1,192,385 211,750 552,284 461,341 441,501 2,633,942 1 171 111 3.669.393 3,3� 7 281 3,968,258 10,280,121 1, 223,900 410 844 5,192,166 10 .690.965 8,86 1,564 14,02246 -58- Schedule 25 KODIAK ISLAND BOROUrH Capital Projects Funds Combining Statement of Revenues, Expenditures, Other Financial Sources (Uses) and Changer in Fund Balances Year ended June 30, 1985 with comparative totals for 1984 -5s Local Service School State Roads Various Equipment State Municipal and State School Borough School Bond and Capital Aid Totals Trails Construction Projects Improvem Furnishings Grants Program 1985 Revenues: State sources = 2,651 121,713 - 1,012,804 11,389 1,447,227 25,928 2,621,712 3,944,205 Federal sources - - - 28,912 - - - 28,912 80,054 Investments - - 10,480 868,075 - 244,082 20,897 1,143,534 777,933 Licenses, fees, permits and other local revenues Total revenues - 2,b51 - 121,713 60 000 70,480 - 1,909, - 11,389 75 1, 9 .387 - VQI 5 60 075 3. 854!233 128 441 4930!633 Expenditures: Capital improvements: School facilities - 163,413 - 7,462,989 323,734 44,159 - 7,994,295 9,761,217 Other facilities - - 139,265 - - 1,482,930 26,838 1,649,033 2,330,332 Planning and community development Total expenditures 2 651 251 - 163;413 - 139,2b - 5 - 77 - 9�9 - 323.734 - 1.527.089 - 2f; 8� 2 651 12,15 118 Excess (deficiency) of revenues over expenditures - (41,700 (68,785 (5,553.198 ( 312,345 ) 164.295 19.987 (5,791.746 (7.221,034 Other financial sources (uses): Proceeds of bond sales - - - - - - - - 9,500,000 Transfers from other funds - - 190,000 - 247,947 180,000 - 617,947 1,398,485 Transfers to other funds - - - (200, - (125.000 - (325.000 (3,657.075 Net other financial sources (uses) - - 19 0.000 (200. 247.947 55.000 - 292,947 7.241,410 Excess (deficiency) of revenues and other financial sources over expenditures - (41,700) 121,215 (5,753,198) (64,398) 219.295 19,987 (5,498,799) 20,376 Fund balances at beginning of year 35,533 285,457 - 10,077,994 275,787 6.205 9 10,690,965 10.681,399 Equity transfer - - _ - - - - - - (10.810 Fund balances at end of year $ 35,533 243.757 12 1.215 4,324, 211,389 225.500 29976 5,192,166 10,690,965 -5s ENTERPRISE FUNDS These funds were established to finance and account for the acquisition, operation and maintenance of governmental facilities and services which are entirely or predominantly self - supporting by user charges. WATER AND SEWER ENTERPRISE FUND This fund accounts for all activity of the Borough owned and operated water and sewer utility. HOSPITAL ENTERPRISE FUND This fund accounts for all activity of the Kodiak Island Borough Hospital. The Hospital is a component unit of the Kodiak Island Borough. The Hospital is operated on behalf of the Borough by the Lutheran Hospitals and Homes Society of America. KODIAK ISLAND BOROUGH Enterprise Funds Combining Balance Sheet June 30, 1985 with comparative figures for 1984 Assets Current assets: Equity in central treasury Receivables: Lutheran Hospitals and Homes Society of America City of Kodiak Third party patient payors Customers and patients Less allowance for doubtful receivables Net receivables Inventories, at cost Prepaid expenses Total current assets Restricted assets: Equity in central treasury Time certificates of deposit Accrued interest receivable Receivable from Lion Capital Group Chapter 11 Bankruptcy Trustee Total restricted assets Long -term receivable from Lutheran Hospitals and Homes Society Property, plant and equipment, at cost: Unclassified utility plant in service Hospital building and fixed equipment Mayor movable equipment Less accumulated depreciation Construction work in progress Net property, plant and equipment Water and Totals Sewer Utility Hospital 198 19 $ 93,952 93,952 59,660 - 250,543 250,543 334,589 5,004 5,004 3,245 88,000 88,000 T8,000 35,571 898,208 933 779 949 676 35,571 1,241,755 1,277,325 1,3 ,510 91283 180 000 189 283 250,000 26 258 1,0 1,755 1,0 ,043 1,115,510 - 105,547 105,547 97,141 21 501 21,501 11 417 120,240 "I. ,803 !,309,043 30,90T 1,997,787 - 1,997,787 1,000,000 52,951 - 52,951 12,500 1 000 000 1 000 000 1 000 000 2!0443!407 885,000 885,000 900,000 3,301,764 - 3,301,764 743,232 - 3,950,226 3,950,226 3,820,746 3,3o1,T64 1 083 418 5,033, 44 1 083 418 ,335 08 870 852 5,434, 30 252 099 3,049, 65 1 408 703 3!624!94 1 660 660 88002 6!674,606 1 433 208 4 � 5 623 65 8,671, - 3, r2 ,971 5 623 659 - 1i - j Nrg 4 809809 s0�4.6. S 510,6bS 11,8 02 5,698,744 17,5543 13,037 Schedule 26 Liabilities and Fund Equities Liabilities: Payable from current assets: Bank overdraft Accounts payable Customer deposits Accrued compensation Other accrued liabilities Total payable from current assets Payable from restricted assets: Advance from central treasury Contracts payable Retainage payable Unearned grant receipts Total payable from restricted assets Total liabilities Rater and Sewer Utility Hospital Totals 1985 19 4 Fund equities: Contributions in aid of construction: City of Kodiak st..*tw nr Alaak3 Federal government Kodiak Island Borough Less amortization of contributions in aid of construction Net contributions in aid of construction Retained earnings (deficit): Designated for receivable from Lion Capital Group Chapter 11 Bankruptcy Trustee Undesignated Total retained earnings Total fund equities $ - 28,708 28,708 3,496 10,403 - 10,403 42,391 5,214 - 5,214 6,546 - 129,829 129,829 119,040 15,617 943 159,480 943 35 270 2TU3 175,097 33,695 - 33,695 - 485,140 - 485,140 651,751 128,377 - 128,377 223,892 2.026.163 2,673,375 - 2 026 j 63 2,673,375 968 156 1 2,688,992 159,480 2,848,472 2,050,542 229,166 - 229,166 229,166 6,483,742 - 6, 483,7 12 5 ,102, "83 2,212,516 2,237,104 4,449,620 2,457,233 1 237 007 1,237,007 999 515 ,9� 25,424 3, 774,Li 12,399,535 7$8, 9977 � 252 t 0 9 99 9 - 252 099 229 166 S 673,325 3,4 12 12� , 9, 1 1,000,000 - 1,000,000 1,000,000 (518,015) 2 065 153 1 547 138 1 427 530 41 ,99855 2,0 5,` 2,52 2, t�2T 530 9,155,310 5,539,264 14,694,574 10,987,261 $ 11,844 5,698,744 17,543,046 13,0 -60- Schedule 27 KODIAB ISLAND BOROUGH Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings Year ended June 30, 1985 with comparative totals for 1984 Revenues: Water sales Sewer service charges Patient revenues Installation charges Other Total revenues Water and Sewer Utility Hospital Totals 1985 1994 Operating expenses: Personal services Purchased water and serer treatment Repairs and maintenance Bad debts Depreciation Installation costs Professional care of patients Plant operations and household General administration Other Total operating expenses Operating income (loss) Other income (expense): Interest income Interest expense Other, primarily State of Alaska revenue sharing Net earnings (loss) Amortization of contributions in aid of construction Increase (decrease) in retained earnings Retained earnings at beginning of year Retained earnings at end of year 119,472 - 119,472 140,907 105,066 - 105,066 53,937 - 4,060,077 4,060,077 4,615,468 23,972 - 23,972 9,804 2�1�,510 91 507 ,151.5 91 507 4, 06 74 718 19,561 - 19,561 13,114 156,122 - 156,122 112,780 9,731 - 9,731 5,485 9,283 - 9,283 - 22,934 205,061 227,995 178,258 5',834 - 5,834 r 14,192 - 2 2,385,453 2,406,858 - 857,671 857,671 828,325 - 1,095,791 1,095,791 1,063,986 228.660 4,543,979 T , 772 TT 19,850 (392,392 (372,542 262,872 176,914 - 176,914 169,343 (939) - (939) (427) 840 1 T 15 292 403 292,403 293,243 4469 1 8 389 068 7 55 - 7 = ,; 196,665 (99,989) 96,676 820,856 22 933 219 9 - 9�) 22 933 11� 2 - p,$5T 262,387 2,165,142 2,427,529 1,606,673 $ 481,985 2,065,153 2,547,138 2,427,529 -61- -62- Schedule 28 KODIAK ISLAND BOROUGH Enterprise Funds Combining Statement of Changes in Financial Position Year ended June 30, 1985 with comparative totals for 1984 i Water and Sewer Utility Hospital Totals 1985 19 j Financial resources provided: Net earnings (1083) $ 196,665 (99,989) 96,676 820,856 Depreciation which does not use working capital 22,934 205.061 227 9955 178,258 Working capital provided by operations 219,599 105,0T2 324,671 999,114 State of Alaska grants 1,380,759 - 1,380,759 3,919,013 Federal grants 1,992,38T - 1,992,387 185,801 Contribution from Kodiak Island Borough General Fund for purchase of equipment - 237,491 237,491 401,296 Reduction of long -term receivable Total financial resources provided 3,592,TW55 15 000 357 5�3 15 000 3 9E OT 5,509,,27 Financial resources used: Acquisition of property, plant and equipment 3,373,146 342,446 3,715,592 4,560,587 Loan to Lutheran Hospitals and Homes Society of America - 900 000 Total finxnelal reanurl m!taA _ 7 1 G _ S 5 - � Increase in working capital i $ 21� 9 5 9 1 234,716 44,637 Changes in components of working capital: Increase (decrease) in: Current assets: Equity in central treasury 34,292 - 34,292 40,T44 Receivables 6,491 (33,958) (27,467) (238,264) Inventories - 8,406 8,406 6,356 Prepaid expenses - 10,084 10,084 7,390 Restricted assets: Equity in central treasury (30,907) - (30,907) 30,907 Time certificates of deposit 997,787 - 997,787 (100,000) Receivables from Federal government - - - (4,225) Accrued interest receivable 40,451 - 40,451 12,500 Receivable from Lion Capital Group Chapter 11 Bankruptcy Trustee - 1,048,114 - (15.468 1,032,64 1 000 000 75� 5 Current liabilities payable from current assets: Bank overdraft - 25,212 25,212 (2,216) Accounts payable 271 (32,259) (31,988) (20,089) Customer deposits (1,332) - (1,332) (475) Accrued liabilities - (23,538) (23,538) (55,976) Current liabilities payable from restricted assets: Advance from central treasury 33,695 - 33,695 (5,104) Contracts payable (166,611) - (166,611) (31,156) Retainage payable (95,515) - (95,515) 220,892 Unearned grant receipts 1 058 007 j $28,5 3 058,007 604,895 5 30,5 ) 797,930 T10,T71 Increase in working capital $ 219,599 15,117 234,716 44,637 -62- KODIAK ISLAND BOROUGH Water and Sewer Enterprise Fund Balance Sheet June 30, 1985 with comparative figures for 1984 Assets Current assets: Equity in central treasury Customer receivables Less allowance for doubtful receivables Net customer receivables Total current assets Restricted assets: Equity in central treasury Time certificates of deposit Accrued interest receivable Receivable from Lion Capital Group Chapter 11 Bankruptcy Trustee Total restricted assets Property, plant and equipment: Unclassified utility plant in service Accumulated depreciation Net utility plant in service Construction work in progress Net property, plant and equipment 1985 1984 $ 93,952 59,660 35,571 19,797 9,283 26,288 19,797 120,240 79,457 - 30,907 1,997,787 1,000,000 52,951 12,500 1,000,000 1,000,000 3,050,738 2,043,407 3,301,764 743,232 252,099 229,166 3,049,665 514,066 5,623,659 8,673,324 4,809,046 5,323,112 $ 11,844,302 7,445,976 Schedule 29 Liabilities and Fund Equity 1985 1984 Liabilities: Current liabilities: Payable from current assets: Accounts payable Customer deposits Total payable from current assets Payable from restricted assets: Advance from central treasury Contrac ca payable Retainage payable Unearned grant receipts Total payable from restricted assets Total liabilities Fund equity: Contributions in aid of construction: City of Kodiak State of Alaska Federal government Accumulated amortization Net contributions in aid of construction Retained earnings (deficit): Designated - receivable from Lion Capital Group Chapter 11 Bankruptcy Trustee Undesignated Total retained earnings Total fund equity $ 10,403 10,132 5,214 6 ' 546 15,617 16,678 33,695 - 485,140 051,751 128,.. ; 377 223,892 2 026 163 > 968,156 2, 1 ,843,799 2,688,992 1,860,477 229,166 229,166 6,483,742 5,102,983 2,212,516 220,129 8,925,424 5,552,278 252,099 229,166 8,673,325 5,323,112 1,000,000 1,000,000 (518,015 (737,613 481,985 262,387 9,155,310 5,585,499 $ 11,844,302 7,4476 -63- Schedule 30 KODIAK ISLAND BOROUGH Water and Sewer Enterprise Fund Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual Year ended June 30, 1985 with comparative figures for 1984 1985 Variance favorable 1984 Budget Actual (unfavorable) actual Revenues: Water sales $ 126,120 119,472 (6,648) 140,907 Sewer service charges 88,960 105,066 16,106 53,937 Installation charges 10,900 23,972 13,072 9,804 Other - 440 w. �o L ai revenues nnr n n 225,980 1� r• 2488 , nn r 22, OQ 205.,038 Operating expenses: Water: Personal services 11,520 10,555 965 9,143 Electric 17,000 1,590 15,410 2,744 Rent - - - 59 Purchased water 82,000 84,369 (2,369) 73,959 Depreciation - 6,490 (6,490) - Training 1,500 669 831 70 Advertising and hearings 500 109 391 58 Printing and binding - 230 (230) 635 Repairs and maintenance 10,000 5,291 4,709 4,448 Contracted services - - - 2,168 Automotive and travel 1,000 - 1,000 598 Office supplies and postage 1,600 417 1,183 394 Installation costs 5,000 5,764 (764) 13,669 Small tools 1,000 342 658 90 Bad debt expense - 4,642 (4,642 - Total water 131,120 120,468 10,652 108,035 (Continued) -64- 2 Schedule 30, Cont. KODIAK ISLAND BOROUGH Water and Sewer Enterprise Fund Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual, Continued Other income (expense): Interest income - 176,914 176,914 169,343 Interest expense - ( 939) (939) (426) Other - 840 840 176,815 176,815 168,917 Net earnings - 196,665 196,665 219,470 Amortization of contributions in aid of construction - 22,933 22 933 - Increase in retained earnings - 219,598 219 219,470 Retained earnings 1985 beginning of year 262,387 262,387 - 42,917 Variance earnings at end of year $ 262,387 favorable 1984 262,387 Budget Actual (unfavorable) actual Sewer: Personal services $ 10,180 9,006 1,174 3,971 Electric - 1,450 (1,450) 940 Rent - - - 10 Purchased sewer treatment 64,680 71,753 (7,073) 38,821 Depreciation - 16,444 (16,444) - Training 1,500 16 1,484 831 Advertising and hearings 500 30 470 58 Repairs and maintenance 10,000 4,440 5,560 1,037 A- 1- motive and travel ! 1' 1 vvv ! -4^^ J `J Installation costs 5,000 70 4,930 523 Small tools 2,000 342 1,658 - Bad debts - 4,641 (4,641 - Total sewer 94,860 108,192 (13,332 4C, 500 Total operating expenses 225,980 228,660 (2,680 154,535 Operating income - 19,850 19,850 50,553 Other income (expense): Interest income - 176,914 176,914 169,343 Interest expense - ( 939) (939) (426) Other - 840 840 176,815 176,815 168,917 Net earnings - 196,665 196,665 219,470 Amortization of contributions in aid of construction - 22,933 22 933 - Increase in retained earnings - 219,598 219 219,470 Retained earnings at beginning of year 262,387 262,387 - 42,917 Retained earnings at end of year $ 262,387 481,985 219,598 262,387 -65- Schedule 31 KODIAK ISLAND BOROUGH Water and Sewer Enterprise Fund Statement of Changes in Financial Position Year ended June 30, 1985 with comparative figures for 1984 .. 1985 1984 Financial resources provided: Net earnings $ 196,665 219,470 Depreciation which does not use working capital 22 ,934 Working capital provided by operations 219 ,599 219,470 State of Alaska grants 1,380,759 3,919,012 Federal grants 1,992,387 185,801 Total financial resources provided 3,592,745 4,324,283 Financial resources used - acquisition of property, plant and equipment 3,373,146 4,124,941 Increase in working capital $ 21� 9� 19 342 Changes in components of working capital: Increase (decrease) in: Current assets: Equity in central treasury 34,292 40,744 Customer receivables 6,491 3,631 Restricted assets: Equity in central treasury (30,907) 30,907 Time certificates of deposit 997,787 (100,000) Receivable from Federal government - (4,225) Accrued interest receivable 40,451 12,500 Receivable from Lion Capital Group Chapter 11 Bankruptcy Trustee - 1,000,000 1,048,114 983,557 Current liabilities: Payable from current assets: Accounts payable 271 (4,83.7) Customer deposits (1,332) (475) Payable from restricted assets: Advance from central treasury 33,695 (5,104) Contracts payable (166,611) (31,156) Retainage payable (95,515) 220,892 Unearned grant receipts 1,058,007 604,895 828,515 784,215 Increase in working capital $ 219 199,342 .. Schedule 32 KODIAK ISLAND BOROUGH Hospital Enterprise Fund Balance Sheet December 31, 1984 with comparative figures for 1983 Assets 1984 1983 Current assets: Receivables: Patient and resident, less estimated allowances and uncollectibles of $180,000 in 1984 and $250,000 in i9 S3 $ 718,208 679,879 Lutheran Hospitals and Homes Society of America 250,543 334,589 Third party 88,000 78,000 City of Kodiak 5,004 3,245 Inventories, at cost 105,547 97,141 Prepaid expenses 21 ; 501 1,417 Total current assets 1,188,803 1,204,271 Receivable from Lutheran Hospitals and Homes Society of America 885,000 900,000 Building and equipment, at cost: Building and fixed equipment 3,950,226 3,820,746 Major movable equipment 1,083,418 870,852 5,033,644 4,691,598 Less accumulated depreciation 1,408,703 1,204,042 Net building and equipment 3 ,624 ,941 3,487,556 $ 5 744 5,59 Liabilities and Fund Equity Current liabilities: Bank overdraft 28,708 3,496 Accounts payable - 32,259 Accrued liabilities: Compensation 129,829 119,040 Other 943 35,270 Total current liabilities 159,480 190,065 Fund equity 5,539,264 5,401,762 $ 5,698,744 5,591,827 -67- Schedule 33 KODIAK ISLAND BOROUGH Hospital Enterprise Fund Statement of Revenues, Expenses and Changes in Fund Equity Year ended December 31, 1984 with comparative figures for 1983 1984 1983 Operating revenues: Patient and resident service Less allowances for uncollectible accounts Net patient and resident service revenues Other operating revenues Total operating revenues Operating expenses: Professional care of patients and residents General and administrative Plant operation and household Depreciation Total operating expenses Operating income (loss) Other income, primarily State of Alaska revenue sharing Net earnings (loss) Fund equity at beginning of year Equity transfers from Kodiak Island Borough Fund equity at end of year $ 4,664,200 5,178,861 604,123 563,393 4,060,077 4,615,46 91,507 74,278 4,151,584 4,689,746 2,385,453 2,406,858 1,095,791 1,063,986 f 857,671 828,325 205,061 178,258 4,543,976 4,477,427 (392,392) 212,319 292 403 389 , 068 (99,989) 01,387 5,401,762 4,399,079 237,491 401,296 $ 5 5,401,762 .: Schedule 34 KODIAK ISLAND BOROUGH Hospital Enterprise Fund Statement of Changes in Financial Position Year ended December 31, 1984 with comparative figures for 1983 1984 1983 Financial resources provided: Net earnings (loss) from operations Depreciation which does not require working capital Working capital provided (used) in operations Nonoperating revenues Contribution from Kodiak Island Borough General Fund for equipment purchases Reduction of receivable from Lutheran Hospitals and civvies Society of America Total financial resources provided Financial resources used: Construction of building improvements and purchase of equipment Financing of receivable from Lutheran Hospitals and Homes Society of America Total financial resources used Increase (decrease) in working capital Changes in components of working capital: Increase (decrease) in: Current assets: Receivables Inventories Prepaid expenses Current liabilities: Bank overdraft Accounts payable Accrued liabilities Increase (decrease) in working capital $ (392,392) 212,319 205,061 178,258 (187,331) 390,577 292,403 389 068 105,072 779,645 237,491 401,296 15 000 3573 1,1 TO ,941 342,446 435,646 342,446 $ 15,117 900,000 1,335,646 (154,705 (33,958) 8,406 10,084 (15,468 25,212 (32,259) (23,538 (30,585 $ 15,117 (241,895) 6,356 7,390 (228,149 (2,216) (15,252) (55.976) (73,444 (154,705 FIDUCIARY STUDENT ACTIVITIES FUND This fund accounts for the operations of the various Kodiak Island SoroUCh Snhnnl nictrint -student oroaniv--tions. Schedule 35 KODIAK ISLAND BOROUGH Student Activities Fund Statement of Revenues, Expenditures and Due to Student Organizations Year ended June 30, 1985 -70- Balance and Balance and due to due to student student organizations organizations at at July 1, 1984 Revenues Expenditures June 30, 1985 High school: Student council $ 29,057 91,386 92,051 28,392 Athletics 4,605 18,965 19,899 3,671 Music 153 1,009 756 406 T�l..L1i LS l!Jii as iVris Classes L91 8 11• •nJ Y i 9,961 !� >40 � ,� 9,801 1 , 4 ii 8,562 Clubs 9,184 16,160 14,267 11,077 Miscellaneous 3,587 5,092 6,462 2,217 Total high school 55,619 156,763 153,882 58,500 Junior high school 2,403 5,491 4,424 3,470 Elementary schools: East Elementary School 1,622 5,503 5,089 2,036 Main Elementary School 1,445 4,879 4,847 1,477 Peterson Elementary School 1,913 6,315 4,065 4,163 Village schools 2,965 6,558 5,110 4 Bilingual /bicultural education instruction 39 - 39 - Total elementary schools 7,984 23,255 19,150 12,089 School Board Sunshine Fund - 575 486 89 $ 66,006 186,084 177,942 74,148 -70- GENERAL FIXED ASSETS ACCOUNT GROUP This is a self - balancing account group which records fixed assets of the Borough and School District other than those recorded in the Water and Sewer and Hospital Enterprise Funds. Schedule 36 KODIAK ISLAND BOROUGH General Fixed Assets Account Group Statement of General Fixed Assets by Source June 30, 1985 General fixed assets: Land Buildings Improvements other than buildings i Equipment Construction work in progress Investment in general fixed assets: Capital Projects Fund: General obligation bonds Feder al gr antJ State grants General Fund revenues Special Revenue Funds revenues Contribution from State of Alaska Gifts Unallocated $ 18,868,430 39,492,373 730,239 2,204,793 7,456,790 $ 68 1 752,625 29,367,015 O1L,0j0 13,978,467 1,559,838 74,533 17,631,400 4,100,400 1,428,316 $ 68,752,625 -71- Schedule 37 KODIAK ISLAND BOROUGH General Fixed Assets Account Group Schedule of General Fixed Assets by Function and Activity June 30, 1985 Improvements Machinery -72- other than and Function and activity Total Land Buildings buildings equipment Staff agencies: Borough manager $ 6,868 - - - 6,868 Borough clerk 13,379 - - - 13,379 Finance 28,215 - - - 28,215 Assessing 7,355 - - - 7,355 Community development 9,657 - - - 9,657 Engineering 33,224 - - - 33,224 Data services 194,796 - - - 194,796 Facilities 30,476 - - - 30,476 General administration 70.423 - - - 70,423 Total staff agencies 394,393 - - 394,393 Public safety: Fire protection area one 624,791 - 423,750 - 201,041 Bells Flats fire district 606,698 - 425,655 - 181,043 Total public safety 1,231,489 - 849,405 - 382,084 Schools 36,172,157 - 34,743,841 - 1,428,316 Teacher housing 89,380 - 89,380 - - General governmental buildings 3,809,747 - 3,809,747 - - Building sites 1,237,030 1,237,030 - - _ Playgrounds 710,239 - - 710,239 - Docks 20,000 - - 20,000 - Total general fixed assets allocated to functions 43,664,435 1,237,030 39,492,373 730,239 2,204,793 Undeveloped land 17,631,400 17,631,400 - _ _ Construction work in progress 7,456,790 - 7,456,790 - - Total general fixed assets $ 68,752,625 18,868,430 46,949,163 730,239 2,204,793 -72- Schedule 38 KODIAK ISLAND BOROUGH General Fixed Assets Account Group Statement of Changes in General Fixed Assets by Function and Activity Year ended June 30, 1985 General fixed General fixed assets at assets at Function and activity July 1, 1984 Additions Deductions June 30, 1985 Staff agencies: Borough manager $ 1,827 5,041 - 6,8681✓ Borough clerk 3,565 9,814 - 13,379;/ Finance 19,262 8,953 - 28,215 Assessing 3,170 4,185 - 7,355 Community development 2,986 6,671 - 9,657 ✓ Engineering 31,752 1,472 - 33,224 Data services 233,709 32,299 71,212 194,796 Facilities 19,234 11,242 - 30,476 Gener ri s�+ +» +., e 3 mi - -s t. a:.i [n .+n0 62 , 11 , tier 1 , y-t7 I y ,'+G3 Total staff agencies 378,283 87,322 71,212 394,393 Public safety: Fire protection area one 624,791 - - 624,791 Bells Flats fire district 606 ,698 - - 606,698 Total public safety 1,231,489 - - 1,231,489 Schools 33,881,454 2,290,703 - 36,172,157 Teacher housing 89,380 - - 89,380 General governmental buildings 3,809,747 - - 3,809,747 Building sites 1,237,030 - - 1,237,030 Playgrounds 710,239 - - 710,239 Docks 20,000 - 20,000 Total general fixed assets allocated to functions 41,357,622 2,378,025 71,212 43,664,435 Undeveloped land 17,631,400 - - 17,631,400 Construction work in progress 10,820,098 7,203,450 10,566,758 7,456,790 Total general fixed assets $ 69,809,120 9,581,475 10,637,970 68 -73- GENERAL LONG -TERM DEBT ACCOUNT GROUP This is a self - balancing account group which records the Borough's unmatured general long -term debt. This debt is payable from moneys presently in the various Debt Service Funds and from future general Borough revenues. The debt is backed by the full faith and credit of the Borough. Schedule 39 KODIAK ISLAND BOROUGH General Long -term Debt Account Group Statement of General Long -term Debt June 30, 1985 with comparative figures for 1984 1985 Amount available and to be provided for the payment of general long -term debt: Amount available in Debt Service Funds: Hospital term bonds School serial bonds Accrued annual leave Amount to be provided: Hospital term bonds School serial bonds General long -term debt payable: Hospital term bonds General obligation school bonds: 1965 series 1967 series 1974A refunding 1974E refunding 1980A series 1983A series 1984B series Accrued annual leave $ 312,561 6,751,245 56,759 7,120,565 5 f12 6 ,� 18,763,755 18 ,751 ,194 $ 25,871,759 1984 304,622 5,995,67 6,300,296 23,729,326 23,724,704 30,025,000 300,000 300,000 150,000 210,000 1,900,000 11,155,000 3,800,000 8,300,000 25,515,000 56,759 $ 25,871,759 25,000 200,000 405,000 1,900,000 11,495,000 6,200,000 9,500,000 29,725,000 30,025,000 -74- STATISTICAL TABLES Statistical tables reflect social and economic data, financial trends and the fiscal capacity of the governmental unit. Table 1 KODIAK ISLAND BOROUGH Kodiak, Alaska General Governmental Expenditures by Function Last ten fiscal years (a) Kodiak Island Borough is a second -class borough and does not have road powers. Specific moneys are expended for local service roads and trails in the service districts. Subsequent to fiscal period 1978, these moneys are administered through a separate fund. (b) The Debt Service Funds are maintained as separate funds. Some amounts (included in transfers) go to the Debt Service Funds from the General Fund. -75- Local service Fiscal General roads and Health and Debt y ear government trails(a) sanitation Education service(b) Transfers Total 1976 $ 316,507 52,034 90,374 550,000 29,625 11,850 1,050,390 1977 485,045 114 88,680 611,000 219,365 50,707 1,568,797 1978 731,151 2,400 239,423 531,202 210,260 116,200 1,830,636 1979 876,891 - 163,455 824,164 126,991 153,146 2,144,647 1980 995,585 - 189,280 1,113,882 84,689 525,603 2,909,039 1981 1,525,087 - 342,696 1,298,585 102,887 519,212 3,788,467 1982 1,694,923 - 785,644 906,447 - 506,125 3,893,139 1983 1,857,316 2,034 446 1,386,788 - 4,742,292 8,434,431 1984 1,588,182 - 709,508 1,478,912 - 1,185,630 4,962,232 1985 796,799 - 492,384 1,428,345 - 2,196,050 4,913,578 (a) Kodiak Island Borough is a second -class borough and does not have road powers. Specific moneys are expended for local service roads and trails in the service districts. Subsequent to fiscal period 1978, these moneys are administered through a separate fund. (b) The Debt Service Funds are maintained as separate funds. Some amounts (included in transfers) go to the Debt Service Funds from the General Fund. -75- Table 2 KODIAK ISLAND BOROUGH Kodiak, Alaska General Revenues by Source Last ten fiscal years Fiscal year Taxes 1976 $ 733,433 1977 1,032,799 1978 1,495,808 1979 1,706,902 1980 2,060,290 1981 2,245,873 1982 2,207,330 1983 1,876,462 1984 1,843,461 1985 1,868,049 Licenses Charges and Intergovernmental for Fines and permits revenue service forfeitures Miscellaneous Total 5,520 282,197 63,152 - 28,802 1,113,104 7,884 462,651 97,437 - 318,675(a) 1,919,446 6,117 499,659 192,258 - 12,203 2,206,045 24,121 378,736 249,888 - 120,335 2,479,982 7,695 709,253 466,153 - 132,968 3,376,359 24,083 1,706,477 112,120 35,238(c) 923,101 5,046,892 22,233 2,701,874 110,020 30,425 892,206(b) 5,964,088 45,444 3,086,448 118,064 51,797 472,281 5,650,496 34,779 2,542,441 44,194 1,111 542,968 5,008,954 40,386 2,365,386 25,850 - 454,218 4,753,889 (a) Includes a $262,822 transfer to the Debt Service Funds. (b) Largest single element of this figure is $860,121 of investment earnings in an unusual year of the market. (c) Part of miscellaneous until 1981. -76- Table 3 KODIAK ISLAND BOROUGH Kodiak, Alaska Property Tax Levies and Collections Last ten fiscal. years (a) Includes $161,113 due from City of Kodiak. (b) Includes $984,930 due from City of Kodiak. (c) Intensive collection procedures were instituted to include foreclosure proceedings, where necessary, under Alaska Statute, Title 29. A dispute was settled between the Borough and the City and amounts due were remitted to the respective governments. -77- Percent of Percent of Percent Delinquent total tax Outstanding delinquent Current tax of levy tax Total tax collections delinquent taxes to Fiscal year Total tax levy collections collected collections collections to tax levy taxes tax levy 1976 $ 725,094 674,487 93.0% $ 43,865 718,352 99.1% $ 75,698 10.4% 1977 1 991 94.0 28,672 1,019,727 96.8 97,346 9.2 1978 1,163,093 1,121,756 96.4 17,824 1,139,580 98.0 121,095 10.4 1979 1,421,058 1,328,655 93.5 51,329 1,379,984 97.1 166,635 11.7 1980 1,915,340 1,764,316 92.1 48,923 1,813,239 94.7 330,578(a) 17.3 1981 2,257,590 1,496,037 66.3 41,038 1,537,075 68.1 1,051,093(b) 46.6 1982(c) 2,118,431 2,095,431 98.9 978,969 3,074,400 145.1 95,124 4.5 1983 1,876,462 1,844,867 98.3 94,231 1,939,098 103.3 32,488 1.7 1984 1,646,752 1,617,654 98.2 31,487 1,649,141 100.1 30,099 1.8 1985 1,508,003 1,492,923 99.9 10,733 1,503,656 99.7 19,366 1.3 (a) Includes $161,113 due from City of Kodiak. (b) Includes $984,930 due from City of Kodiak. (c) Intensive collection procedures were instituted to include foreclosure proceedings, where necessary, under Alaska Statute, Title 29. A dispute was settled between the Borough and the City and amounts due were remitted to the respective governments. -77- Table 4 KODIAK ISLAND BOROUGH Kodiak, Alaska Assessed and Estimated Actual Value of Taxable Property Last ten fiscal years (a) Exempted boat full and true value for $5 and $15 fees. (b) Reflects exemptions of boats and inventories. (c) Same as (a) and W. (d) Exempted $5 tax for small watercraft (boats and skiffs under five ton). -78- Ratio of total Real property Personal property_ Total assessed Estimated Estimated Estimated to total Fiscal Assessed actual Assessed actual Assessed actual estimated ear value value value va lue value value actual value 1976 $ 82,526,940 82,526,940 63,236,670 63,236,670 145,763,610 145,763,610 100 % 1977 118,797,040 118,797,040 55,904,450 55,904,450 174,701,490 174,701,490 100 1978 119,063,900 119,063,900 63,658,640 63,658,640 182,722,540 182,722,540 100 1979 207,066,200 207,066,200 102,859,300 102,859,300 309,925,500 309,925,500 100 1980 225,394,400 225,394,400 132,268,500 132,268,500 357,662,900 357,662,900 100 1981 187,598,046 187,598,046 149,474,150 149,474,150 337,072,196 337,072,196 100 1982 216,508,832 216,508,832 67,606,123(a) 144,886,873 284,114,955 361,395,705 76.1 1983 307,989,403 307,989,403 87,631,001(b) 182,466,162 395,620,404 490,455,565 80.7 1984 325,278,582 325,278,582 69,329,999(c) 167,476,461 394,608,581 492,755,043 80.1 1985 354,524,678 354,524,678 52,088,100(4) 125,607,345 406,612,778 480,132,023 84.7 (a) Exempted boat full and true value for $5 and $15 fees. (b) Reflects exemptions of boats and inventories. (c) Same as (a) and W. (d) Exempted $5 tax for small watercraft (boats and skiffs under five ton). -78- Table 5 KODIAK ISLAND BOROUGH Kodiak, Alaska Ten Largest Taxpayers Taxpayer International Seafoods of Alaska Glacier State Telephone Brechan Enterprises, Inc. (Construction) Alaska Pacific Seafoods Columbia Wards Fisheries Western Alaska Fisheries King Crab, Inc. Queen Fisheries, Inc. Sea -Land Services, Inc. (marine and land freight) The Kazim Company (seafood processing) Total 1985 assessed valuation Taxes levied $ 8,987,351 42,182.64 7,723,436 33,658.85 5,592,955 23,738.23 4,761,915 21,127.03 4,227,500 20,853.90 4,212,481 20,401.00 4,054,042 18,728.79 4,044,013 15,167.81 3,882,655 16,580.11 3,333,088 14,996.09 $ 50,819 227,434,45 -79- Table 6 KODIAK ISLAND BOROUGH Kodiak, Alaska Ratio of Net General 3onded Debt Last ten fiscal years (a) 1980 population is per U.S. Bureau of Census; others are estimates from the Borough Planning Department based on a complicated and reliable formula of building permits, date of occupancy, percentage vacant, etc. (b) This figure was via a joint Borough /City special census. This figure was accepted and certified by the State demographer on November 17, 1982 and later accepted by the Federal Bureau of Census. ff:1i15 Ratio of net Net bonded bonded Gross :Less Debt Net debt to debt Fiscal Assessed bonded Service bonded assessed per year Population value debt Fund debt value capita 1976 8,986 $ 145,763,615 4,455,000 150,000 4,305,000 3.0% $ 479 1977 9,224 174,701,540 4,295,000 165,000 4,130,000 2.4 448 1978 9,462 182,722,540 4,130,000 180,000 3,950,000 2.2 417 1979 9,701 309,925,500 3,930,000 195,000 3,735,000 1.2 385 1980(a) 9,939 357,662,900 3,725,000 226 3,498,538 1.0 352 1981 10,124 337,092,197 15,610,000 1,180,818 14,429,182 4.3 1,425 1982 11,567 384,114,955 15,390,000 435,438 14,954,562 3.9 1,293 1983(b) 12,718 395,630,404 22,275,000 435,438 21,839,562 5.5 1,717 1984 13,080 394,608,581 30,025,000 6,300,296 23,724,704 6.0 1,814 1985 13,389 406,612,778 25,815,000 6,841,747 18,973,253 4.7 1 (a) 1980 population is per U.S. Bureau of Census; others are estimates from the Borough Planning Department based on a complicated and reliable formula of building permits, date of occupancy, percentage vacant, etc. (b) This figure was via a joint Borough /City special census. This figure was accepted and certified by the State demographer on November 17, 1982 and later accepted by the Federal Bureau of Census. ff:1i15 KODIAK ISLAND :BOROUGH Kodiak, Alaska Computation of Direct and Overlapping Debt Year ended June 30, 1985 Percentage Kodiak applicable Island Net debt to this Borough's outstanding governmental share of Name of governmental unit (a) unit(b) debt Kodiak Island Borough, general obligation school bonds $ 18,973,253 100% $ 18,973,253 City of Kodiak: General obligation bonds 2,455,000 64 1,571,200 Revenue bonds 3,298,000 64 2,110,720 Total $ 24,726,253 $ 22 (a) Gross debt outstanding less applicable amounts in the Debt Service Funds. (b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to valuation of property subject to taxation in reporting unit. (c) Under Alaska Statutes Title 29, there is no limitation on municipal debt. -81- Table 8 KODIAK ISLAND BOROUGH Kodiak, Alaska Computation of Legal Debt Margin June 30, 1985 Net assessed value Plus exempt property $ 399,583,098 1 ,053,965,717 $ 1 ,453,548,815 *The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions. Debt capacity is ultimately determined by the marketplace. -82- Table 9 KODIAK ISLAND BOROUGH Kodiak, Alaska Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures Last ten fiscal years (a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of term bonds. -83- Ratio of debt service Total Total to general Fiscal Principal Interest debt general expenditures y ear (a) and fees service expenditures (percent) 1976 150 268,777 418,777 1,038,812 40.3% 1977 160 260,510 420,510 1,568,797 26.8 1978 165,000 251 416 1,830 22.7 1979 200,000 241,226 441,226 2,144,647 20.6 1980 205,000 229,737 434,737 2,909,039 14.9 1981 215,000 218,521 433,521 3,788,467 11.4 1982 220 1,680,912 1,900,912 3,893,139 48.8 1983 515,000 1,185,806 1,700,806 8,434,431 20.2 1984 1,750,000 1,555,900 3,305,900 4,962,232 66.6 1985 4 2,093,738 6,303,738 4,913,578 128.3 (a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of term bonds. -83- Table 10 KODIAK ISLAND BOROUGH Kodiak, Alaska Demographic Statistics Last ten fiscal years Fiscal year Population School enrollment(b) Unemployment rate (c) 1976 $ 8,986 2,095 6.8% 1977 9,224 2,089 8.1 1978 9,462 2,093 8.2 1979 9,701 2,143 8.0 1980(a) 9,939 2,189 9.7 1981 10,124 1,960 10.0 1982 11,567 1,985 12.1 1983 12,718 2,079 9.7 1984 13,080 2,073 6.9 1985 13,389 2,295 7.2 (a) 1980 per U.S. Bureau of Census; other years per Borough Planning Department. (b) Kodiak Island Borough School District. (c) Department of Labor, Anchorage. -84- Table 11 KODIAK ISLAND BOROUGH Kodiak, Alaska Salaries and Surety Bonds of Principal Officials Year ended June -30, 1985 (1) By ordinance in 1984 the Kodiak Island Borough Assembly elected to decrease the amount of bond payments to self - insure except for the treasurer and cashier. These positions are bonded at $1,000,000 and $50,000, respectively. (2) Also covered by elected officials' errors and omission policy of $1,000,000. (3) Plus apartment. -85- Amount of Name of official Title Annual salary surety bond (1) Thomas H. Peterson Mayor $ 1,200 (2) See Page i Assembly members 1,200 (2) Jerome M. Selby Manager 60,000 - Contracted Attorney - - Bryce S. Weeks Finance Director /Treasurer 50,760 1,000,000 Earle Smith Fire Chief, Service Area One 37,043(3) - Perry L. Page Data Processing Manager 41,750 - Shirley Miller Borough Clerk 52,020 - Linda Freed Director of Planning and Community Development 48,330 - Carrie Kindgren Cashier 23,310 50,000 Bryce Gordon Chief Building Official 46,040 - David Crowe Engineer 54,630 - Wayne Haerer Assessor /Appraiser 44,930 - Pam Delys - Baglien Director of Mental Health 61,730 - Raymond Camardella Facilities Coordinator 50,060 - (1) By ordinance in 1984 the Kodiak Island Borough Assembly elected to decrease the amount of bond payments to self - insure except for the treasurer and cashier. These positions are bonded at $1,000,000 and $50,000, respectively. (2) Also covered by elected officials' errors and omission policy of $1,000,000. (3) Plus apartment. -85- Table 12 KODIAK ISLAND BOROUGH Kodiak, Alaska Summary of Debt Service Requirements to Maturity Year ended June 30, 1985 * Does not include issues that have been fully defeased. See Table 12h for 1974 issue that was refunded. ** Includes imputed interest of 8% on Variable Rate Demand Bonds, Series 1984A and 1985B. Note: This table (and subsidiary Tables 12a through 12g inclusive) indicate debt service by calendar year; other information in this report relative to debt service is on a fiscal year (July 1 through June 30) basis. n. M. Annual Principal and Interest Requirements General Obligation Bonds School* Hospital Year Principal Interest Principal Interest Total 1985 $ 2,630,000 995,841 ** - 7,312 3,633,153 1986 5,010,000 1,670,553 ** - 14,625 6,695,178 1987 2,665,000 1,356,915 ** 300,000 7,313 4,329,228 1988 2,865,000 1,135,678 ** - - 4,000,678 1989 2,420,000 901,703 ** - - 3,321,703 1990 830,000 771,127 - - 1,601,127 1991 895,000 710,683 - - 1,605,683 f 1 001 060 , 000 AJIC, cn'j 1993 680,000 574,643 - - 1,254,643 1994 735,000 522,963 -. - 1,257,963 1995 795,000 466,000 - - 1,261,000 1996 860,000 402,400 - - 1,262,400 1997 925,000 333,600 - - 1,258,600 1998 1,000,000 259,600 - - 1,259,600 1999 1,080,000 179,600 - - 1,259,600 2000 1,165,000 93,200 - - 1,258,200 $ 25,515,000 11,020,009 300 ,000 29� 36,864,259 * Does not include issues that have been fully defeased. See Table 12h for 1974 issue that was refunded. ** Includes imputed interest of 8% on Variable Rate Demand Bonds, Series 1984A and 1985B. Note: This table (and subsidiary Tables 12a through 12g inclusive) indicate debt service by calendar year; other information in this report relative to debt service is on a fiscal year (July 1 through June 30) basis. n. M. Table 12a KODIAK ISLAND BOROUGH Kodiak, Alaska General Obligation Hospital Bonds, Series 1967 Retirement Schedule This issue, dated May 1, 1967, consists of bonds in the amount of $300,000. These are term bonds, thus, none have been retired. Bonds bear interest at the rate of 4.875 %. Bonds are retired after a period of 20 years. Retirement date is May 1, 1987. Bonds were issued for Kodiak Island Hospital improvement. Bonds are payable at the Seattle First National Bank, Seattle, Washington. Im. 0 Principal Interest Interest Interest due due due Year rate May 1 May 1 November 1 Total 1985 4.875% $ - - 7,312 7,312 1986 4.875 - 7,312 7,313 14,625 1987 4.875, 300,000 7,313 - 307,313 $ 300,000 1 14,625 14,625 329,250 Im. 0 Table 12b KODIAK ISLAND BOROUGH Kodiak, Alaska General Obligation Elementary School Building, Series 1967 Retirement Schedule This issue, dated January 1, 1967, consists of 150 bonds in the amount of $5,000 each, totaling $750,000. Bonds numbered 1 through 120 have been retired. Bonds numbered 121 through 150 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of 20 years. Retirement date is September 1 of each year beginning in 1968. Bonds maturing in 1979 and after are callable beginning in 1979, but according to the escrow agreement, the call will not be exercised. Bonds were issued to extend and improve the elementary school system. Legal opinion was issued by Preston, Thororimson, Horowitz, Starin and Ellis. Bonds are payable at the Seattle First National Bank, Seattle, Washington. Bond Principal Interest Interest Interest numbers due due due Year rate inclusive September 1 March 1 September 1 Total 1985 5% 121 -130 $ 50,000 - 3,750 53,750 1986 5 131 -140 50,000 2,500 2,500 55.,000 1987 5 141 -150 50,000 1,250 1,250 52,500 $ 150,000 3,750 7,500 161,250 :: Table 12c KODIAK ISLAND BOROUGH Kodiak, Alaska General Obligation School Refunding Bonds, Series 1974A Retirement Schedule This issue, dated August 1974, consists of 275 bonds in the amount of $5,000 each, totaling $1,375,000. Bonds numbered 1 through 233 have been retired. Bonds numbered 234 through 275 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of 18 years. Retirement date is August 1 of each year beginning in 1974. Bonds maturing in 1984 and after are callable beginning in 1982, but according to the escrow agreement, the call privilege will not be exercised. Bonds were issued to refund the Borough's outstanding general obligation bonds. Bonds are payable at the Central Bank of Denver, Denver, Colorado. Bond Principal Interest Interest Interest numbers due due due Year rate inclusive usive August 1 February 1 August 1 Total 1985 5.70% 234 -275 $ 210,000 - 6 ,169 216,169 Table 12d KODIAK ISLAND BOROUGH Kodiak, Alaska General Obligation School Refunding Bonds, Series 1974B Retirement Schedule This issue dated August 1, 1974, consists of 380 bonds in the amount of $5,000 each, totaling $1,900,000. No bonds have been retired. Bonds numbered 1 through 380 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of 20 years. Retirement { date is August 1 of each year beginning in 1975. Bonds maturing in 1983 and after are callable beginning in 1982, but according to the escrow agreement, the call privilege will not be exercised. Bonds were issued to extend and improve the school system. Bonds are payable at the Central Bank of Denver, Denver, Colorado. $ 1,900,000 294,893 363,768 2,558,661 .l Bond Principal Interest Interest interest Coupon n. - . b "- d due u due Year rate number inclusive August 1 February 1 August 1 Total 1985 7.25% 21 -22 - $ - - 68,875 68,875 1986 7.25 23 -24 - 215,000 68,875 68,875 352,750 1987 7.25 25 -26 1 -43 235,000 61,081 61,081 357,162 1988 7.25 27 -28 91 -140 250,000 52,562 52,563 355,125 1989 7.25 29 -30 141 -194 270,000 43,500 43,500 357,000 1990 7.25 31 -32 195 -252 290,000 33,712 33,712 357,424 1991 7.25 33 -34 253 -314 310,000 23,200 23,200 356,400 1992 7.25 35 -36 315 -380 330,000 11,963 11,962 353,925 $ 1,900,000 294,893 363,768 2,558,661 .l Table 12e KODIAK ISLAND BOROUGH Kodiak, Alaska General Obligation School Extension and Improvement Bonds, Series 1980A Retirement Schedule This issue dated August 1, 1980, consists of 2,420 bonds in the amount of $5,000 each, totaling $12,100,000. Bonds numbered 1 through 189 have been retired. Bonds numbered 190 through 2420 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of 19 years. Retirement date is August 1 of each year beginning in 1982. Bonds maturing in 1984 and after are callable beginning in 1982, but according to the escrow agreement, the call privilege will not be exercised. Bonds were issued to extend and improve the school system. Bonds are payable at the Rainier Bank and Trust, Seattle, Washington. $ 11,155,000 4,02_ 7_ 4,476,490 19,658,929 -91- Bond Principal Interest Interest Interest numbers due due due Year rate inclusive August 1 February 1 August 1 Total 1985 9.00% 190 -263 $ 370,000 - 449,051 819,051 1986 9.00 264 -342 395,000 432,402 432,402 1,259,804 1987 9.00 343 -428 430,000 414,626 414,626 1,259,252 1988 9.00 429 -521 465,000 395,277 395,277 1,255,554 1989 9.00 522-621 500,000 374,351 374,351 1,248,702 1990 7.30 622 -729 540,000 351,851 351,851 1,243,702 1991 7.30 730-846 585,000 332,141 332,141 1,249,282 1992 7.45 847 -973 630,000 310,789 310,789 1,251,578 1993 7.60 974 -1109 680,000 287,321 287,321 1,254,642 1994 7.75 1110 -1258 735,000 261 261 1,257,962 1995 8.00 1259 -1577 795,000 233,000 233,000 1,261,000 1996 8.00 1578 -1749 860,000 201,200 201,200 1,262,400 1997 8.00 1750 -1934 925,000 166,800 166,800 1,258,600 1998 8.00 1935 -2134 1,000,000 129,800 129,800 1,259,600 1999 8.00 2135 -2350 1,080,000 89,800 89,800 1,259,600 2000 8.00 2351 -2420 1,165,000 46,600 46,600 1,258,200 $ 11,155,000 4,02_ 7_ 4,476,490 19,658,929 -91- Table 12f KODIAK ISLAND BOROUGH Kodiak, Alaska General Obligation School Improvement Bonds, Series 1984A Retirement Schedule This issue, dated June 1984, consisted initially of two bonds* (one bond of $5,000,000 and one of $2,400,000) totaling $7,400,000. Bonds in the amount of $3,600,000 have been retired. Bonds are retired serially in numerical order over a period of 3 years. Retirement date is quarterly, each as indicated below. Bonds maturing in 1984 and after are callable beginning in 1982, but according to the escrow agreement, the call privilege will not be exercised. This issue was marketed by and is indexed weekly by John Nuveen & Co. of Chicago. Legal opinion was rendered by bond counsel, Wohlforth & Flint of Anchorage. Bonds were issued to renovate the Kodiak Junior High School. Bonds are payable at the Metroplitan branch of the Seattle First National Bank, Seattle, Washington. Interest Principal Interest Maturity rate ** quarterly quarterly Total Jul -1985 Variable 600,000 76,000 676,000 Oet.1985 Variable 600,000 64,000 664,000 Jan.1986 Variable 600,000 52,000 652,000 Apr .1986 Variable 1,000,000 40,000 1,040,000 Jul.1986 Variable 1,000,000 20,000 1,020,000 $ 3,80�00 252,000 * These are demand variable rate bonds. Number of bonds issued and denominations will vary over the life of the issue. The original buyer was one firm and two bonds were issued; one for $5,000,000 and one for $2,400,000 on June 1, 1984. ** Interest is at a variable rate; calculation made at 8% of the unpaid principal balance. -92- Table 12g KODIAK ISLAND BOROUGH _. Kodiak, Alaska General Obligation School Improvement Bonds, Series 1985B Retirement Schedule This issue, dated May 1985, consisted initially of 9 bonds totaling $9,500,000. Bonds in the amount of $1,200,000 have been retired. Bonds are retired serially in numerical order over a period of 6 years. Retirement dates quarterly, each as indicated below. Bonds maturing in 1984 and after are callable beginning in 1982, but according to the escrow agreement, the call privilege will not be exercised. This issue was marketed by and is indexed weekly by John Nuveen & Co. of Chicago. Legal opinion was rendered by bond counsel, Wohlforth & Flint of Anchorage. Bonds were issued to construct the Kodiak High School auditorium. Bonds are payable at the Metropolitan branch of the Seattle First National Bank, Seattle, Washington. $ 8,30_0,000_ 1,588,000 9,888,000 (Continued) -93- Interest Principal interest Maturity rate quarterly quarterly Total Jul.1985 Variable 400,000 168,000 568,000 Oct.1985 Variable 400,000 160,000 560,000 Jan.1986 Variable 400,000 152,000 552,000 Apr.1986 Variable 450,000 142,000 592,000 Jul.1986 Variable 450,000 133,000 583,000 Oct.1986 Variable 450,000 124,000 574,000 Jan.1987 Variable 450,000 115,000 565,000 Apr.1987 Variable 500,000 106,000 606,000 Jul.1987 Variable 500,000 96,000 596,000 Oct.1987 Variable 500,000 86,000 586,000 Jan.1988 Variable 500,000 76,000 576,000 Apr.1988 Variable 550,000 65,000 615,000 Jul.1988 Variable 550,000 55,000 605,000 Oct.1988 Variable 550,000 44,000 594,000 Jan.1989 Variable 550,000 33,000 583,000 Apr.1989 Variable 550,000 22,000 572,000 Jul.1989 Variable 550,000 11,000 561,000 $ 8,30_0,000_ 1,588,000 9,888,000 (Continued) -93- N KODIAK ISLAND BOROUGH Kodiak, Alaska Table 12g, Cont. General Obligation School Improvement Bonds, Series 1985B Retirement Schedule, Continued * Interest is at a variable rate; calculation made at 8$ of the unpaid balance. l * These are demand variable rate bonds. Number of bonds issued and denominations will vary over the life of the issue. Original buyer was one firm and nine bonds were issued; one for $1,500,000 and eight for 1,000,000 each on May 3, 1985. -94- Table 12h KODIAK ISLAND BOROUGH Kodiak, Alaska General Obligation Refunding Bonds, Series 1974 Retirement Schedule This issue, dated April 1, 1974, consists of 800 bonds in the amount of $5,000 each, totaling $4,000,000. Bonds numbered 1 through 343 have been retired. Bonds numbered 344 through 800 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of 20 years. Retirement date is August 1 of each year beginning in 1974. This issue was refunded by the August 1, 1974 issue and payment funds are in escrow at Central Bank of Denver. Bonds maturing in 1989 and after are callable beginning in 1989, and according to the escrow agreement, the call privilege will be exercised. Bonds were issued to refund the Borough's outstanding general obligation bonds. Bonds are payable at the Central Bank of Denver, Denver, Colorado. *Funds are in Account No. 87 -1248 with the Central Bank of Denver. Maturities of 1990 through 1992 will be called on August 1, 1989, per Section 4 of the Escrow Agreement with Central Bank of Denver, Denver, Colorado, dated October 1, 1974. MEMO ONLY - Refunded by August 1, 1974 issue. -95- Bond Principal Interest Interest Interest numbers due due due Year rate inclusive August 1 February 1 August 1 Total 1985 5.25% 344 -390 $ 235,000 - 31,454 266,454 1986 5.25 391 -440 250,000 28,369 28,369 306,738 1987 5.40 441 -493 265,000 25,088 25,088 315,176 1988 5.50 494 -548 275,000 21,511 21,511 318,022 1989* 5.55 549 -606 290,000 17,729 17,729 325,458 1990 5.60 607 -667 305,000 27,160 27,160 359,320 1991 5.65 668 -732 325,000 10,311 10,311 345,622 1992 5.70 733 -800 340,000 9,690 9,690 359,380 $ 2,285,000 139,858 171,312 2,596,170 *Funds are in Account No. 87 -1248 with the Central Bank of Denver. Maturities of 1990 through 1992 will be called on August 1, 1989, per Section 4 of the Escrow Agreement with Central Bank of Denver, Denver, Colorado, dated October 1, 1974. MEMO ONLY - Refunded by August 1, 1974 issue. -95- KODIAK ISLAND BOROUGH Kodiak, Alaska Miscellaneous Statistical Data Years ended June 30, 1976 through 1985 Date of Incorporation - September 30, 1963, Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended, Form of Government- Manager /Assembly. 1976 1977 1978 T Area - square miles 4,900 4,900 4,900 Miles of improved streets 16.48 16.48 16.48 Miles of sanitary sewers - - - Number of water taps - - Number of sanitary sewer taps - - - Building permits: Permits issued - - 62 Value of buildings (thousands) - - 3,044.2 Fire protection: Number of fire stations - - - Number of employees - - - Police protection - none Recreation: Parks - number of acres 324.8 390.5 410.5 Facilities: Number of playgrounds - - - Number of swimming pools 1 1 1 Education: Number of schools: Elementary 11 11 11 Junior high /middle 4 4 4 Senior high /middle 6 6 4 Vocational technology 1 1 1 Number of administrative personnel* 104 119 130 Number of teachers 138 129 129 Number of students 2,049 2,236 2,129 Number of municipal employees 16 18 21 Elections: Number of registered voters - 4 4,468 Number voting in last election - 1,253 1,197 Percent of registered voters - 30.1 26.8 *Includes all school staff other than teachers (custodians, aides, secretaries, etc.) Table 13 1979 1980 1981 1982 1983 1984 1985 4,900 4,900 4,900 4,900 4,900 4,900 4,900 16.48 16.48 16.48 16.48 16.48 16.48 17.29 - - - - - 369 412.7 309 309 309 _ _ _ - 170 170 170 52 52 95 124 218 137 150 9,701.9 2,045.8 2,495.5 4,034.7 18,339.9 8,416.1 17,858.0 - - - - - 2 2 1 740.5 1,500 2,230 2,440 3,277 4,099 3,414 4 5 5 1 1 1 1 1 1 1 11 11 11 10 10 10 10 4 4 4 4 4 4 4 5 6 6 6 6 7 7 1 1 1 1 1 1 1 163 173 157 150 160 185 195 141 149 149 150 152 163 167 2,143 2,149 2,086 2,106 2,189 2,180 2,295 21 32 37 39 46 49 46 4,778 5,123 5,198 5,883 5,115 5,200 6,603 1,661 1,595 1,613 1,619 1,720 2,079 3,075 34.8 31.1 31.0 27.5 33.6 44.0 46.6 -96-