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CAFR FY19881 t P 1 C 1 I KODIAK ISLAND BOROUGH 0 L 0 Kodiak Alaska Comprehensive Annual Financial Report For Year Ended June 30, 1988 Prepared by: Department of Finance Bryce S. Weeks Finance Director KODIAK ISLAND BOROUGH TABLE OF CONTENTS INTRODUCTORY SECTION PAGE TABLE OF CONTENTS 1 BOROUGH OFFICIALS v BOARDS AND COMMITTEES vi MAP OF KODIAK ISLAND BOROUGH viii ORGANIZATIONAL CHART ix LETTER OF TRANSMITTAL x FINANCIAL SECTION EXHIB REPORT OF INDEPENDENT AUDITORS 1 COMBINED FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups A 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types B 7 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund, Special Revenue Funds and Debt Service Funds C 9 Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Type - Enterprise Funds D 11 Statement of Changes in Financial Position - Proprietary Fund Type - Enterprise Funds E 12 Notes to Combined Financial Statements 13 SCHEDULE COM BINING_ .INDIVIDU FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS GENERAL FUND: Balance Sheet 1 40 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual 2 41 Schedule of Expenditures and Transfers - Budget and Actual 3 44 i KODIAK ISLAND BOROUGH TABLE OF CONTENTS (Continued) ii SCHEDULE PAGE SPECIAL REVENUE FUNDS: Combining Balance Sheet 4 59 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) 5 61 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Land Sales 6 63 Fire and Road Service Districts: Fire: Area 1 7 64 Women's Bay 8 65 Road: Monashka Bay 9 66 District 1 10 67 Women's Bay 11 68 Bay View Service Districts Road 12 69 Federal and State Grant Programs: Federal Revenue Sharing 13 70 Mental Health Center 14 71 Energy 15 73 Day Care 16 74 Education 17 75 Building and Grounds 18 77 DEBT SERVICE FUNDS: Combining Balance Sheet 19 78 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 20 79 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: School Bonds 21 80 CAPITAL PROJECTS FUNDS: Combining Balance Sheet 22 81 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 23 83 Schedule of Capital Projects 24 85 ii KODIAK ISLAND BOROUGH TABLE OF CONTENTS (Continued) iii SCHEDULE PAGE PROPRIETARY FUND TYPE - ENTERPRISE FUNDS: Combining Balance Sheet 25 87 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings 26 89 Combining Statement of Changes in Financial Position 27 91 Sanitary Landfill: Balance Sheet 28 93 Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual 29 94 Statement of Changes in Financial Position 30 95 Water and Sewer: Balance Sheet 31 96 Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual 32 98 Statement of Changes in Financial Position 33 100 Hospital: Balance Sheet 34 101 Statement of Revenues, Expenses and Changes in Fund Equity 35 102 Statement of Changes in Financial Position 36 103 TRUST AND AGENCY FUNDS: Combining Statement of Changes in Assets, Liabilities and Fund Balances 37 104 GENERAL FIXED ASSETS ACCOUNT GROUP: Statement of General Fixed Assets by Source 38 105 Statement of General Fixed Assets by Function and Activity 39 106 Statement of Changes in General Fixed Assets by Function and Activity 40 108 GENERAL LONG -TERM DEBT ACCOUNT GROUP: Statement of General Long -Term Debt 41 109 iii KODIAK ISLAND BOROUGH TABLE OF CONTENTS (Continued) STATISTICAL SECTION Statistical Tables: General Governmental Expenditures and Other Uses by Function - Last Ten Fiscal Years General Revenues by Source - Last Ten Fiscal Years Property Tax Levies and Collections - Last Ten Fiscal Years Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years Property Tax Rates - All Overlapping Governments - Last Ten Fiscal Years Ten Largest Taxpayers Ratio of Net General Bonded Debt - Last Ten Fiscal Years Computation of Direct and Overlapping Debt Computation of Legal Debt Margin Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures - Last Ten Fiscal Years Demographic Statistics - Last Ten Fiscal Years Salaries and Surety Bonds of Principal Officials Summary of Debt Service Requirements to Maturity General Obligation Bonds Outstanding: School Refunding Bonds, Series 1974B School Improvements, Series 1980A School Improvements, Series 1984B School Improvements, Series 1986A School Refunding Bonds, Series 1974 Property Value, Construction and Bank Deposits - Last Ten Fiscal Years Miscellaneous Statistical Data PAGE TABLE 1 110 2 111 3 112 4 113 5 114 6 115 7 116 8 117 9 118 10 119 11 120 12 121 13 122 13a 123 13b 124 13c 125 13d 126 13e 127 14 128 15 129 iv 1 n 1 SECTION I I INTRODUCTORY SECTION k 1 1 BOROUGH OFFICIALS Kodiak Island Borough Year Ended June 30, 1988 BOROUGH ASSEMBLY Alan Austerman '88 Ann Barker '89 Tom Merriman '90 Ken Gregg '88 Wayne Stevens '89 Jack L. McFarland '90 (Presiding Officer) Lorne "Lonnie" White '89 BOROUGH MAYOR Jerome M. Selby '89 Charles E. "Bud" Cassidy . ............................... Resource Management Officer David C. Crowe ...................... ............................... Borough Engineer Pamela Delys— Baglien .......... ............................... Mental Health Director Linda L. Freed ..................... ............................... Planning Director Wayne D. Haerer ................... ............................... Assessor /Appraiser Jamin, Ebell, Bolger, Gentry ..................... (Contracted Firm) Borough Attorney Robert MacFarlane ............. ............................... Facilities Coordinator Perry L. Page ................ ............................... Data Processing Manager Jerome M. Selby .................... ............................... Personnel Officer Earl A. Smith ............................. ............................... Fire Chief Gaye Vaughan ........................... ............................... Borough Clerk Don Wee ....................... ............................... Hospital Administrator Bryce S. Weeks ............ ............................... Finance Director /Treasurer Mary Ann Weidman .................... ............................... Purchasing Agent John Witteveen ....... ............................... Superintendent, School District v KODIAK ISLAND BOROUGH Kodiak, Alaska Boards and Committees Year ended June 30, 1988 Sch ool Board 5) *Suzanne Hancock Dave Herrnsteen Alice Knowles Cheryl McNeil Bill Oliver Ho spital Advisory Board (7 Ben Ardinger William C. Hogan Gretchen Saupe Betty Springhill *Wilton White Dr. Bob Johnson Ann Barker Mental Health Center Advisory Board (9 Josefina Barber Sharon Been Frances Cater Maureen Eberhardt Julie Knagin Jane Nuttall Barbara Popken Wayne Stevens Vacant Planni a nd Zon ing Commission (7 Michael Anderson Jon Hartt Robin Heinrichs Tom Hendel Mary Lou Knudsen *Steve Rennell Scott Thompson Pe rson ne l Advisory Board (5 Pat Borger Mary McFarland Mary Monroe *Walter Sapp Cit izen Board of Equalization (5 Jim Carmichael Vickie Case Tim Hurley Norman Sutliff *Kyle Taylor Jim Ashford, Alternate Parks_anl_R Committee (12 Lisette Alvarez Maureen Butler Jim Cobis Lisa Dunn Susan Jeffrey *Patrick Vaughan Tom Watson Tom Merriman Mary Lou Knudsen Ian Fulp Mike Goodwin Alice Knowles Architectural Review Board (9 *Bill Beaty Wayne Coleman Cliff Ford Joann Hall Robin Heinrichs Vacant (2) Thomas Saint Ken Gregg Building Code Board of Appeals (7 Cliff Ford Joann Hall Robin Heinrichs Robert Hull Vacant (3) Data Proc essing Steering Committee (7 Ken Gregg Perry Page *Jerome Selby Bryce Weeks Bill Oliver John Witteveen Jocelyn Zwiefelhofer vi t i t 1 * Indicates chair 1 vii Fire Protecti Area #1 Advisory Board (5 Scott Arndt Sid Cozart Charles Lorenson *Horace Simmons Bill Swearingin Bav View Road _ Service District Advisory B oard Dawn Black Reed Oswalt Randy Chase *Sid Cozart Dave Kubiak Monashka Bay Road Service District Advisory Board (5 Eric Blankenburg Roxy Bringgold Ilva Fox Dan Ogg *Bill Swearingin Kodiak Island Transport Stu Steering Committee (KITS) (5 Alan Austerman Bob Brodie Al Cratty Gordon Gould Jerome Selby Consolidation Committee (9) Chris Blackburn Andy Cristaldi Sven Haakanson Tom Hendel Beverly Horn Jack McFarland *Gary Stevens Wilton White Helen Wise Joyce Healey, Alternate Service District No. 1 Advisory Board (7 Scott Arndt Okey Chandler *Jim Fisk Gordon Gould Tony Perez Martha Randolph Earl Smith, Jr. Wome Bay Servi District Advisory Board (7 *Wayne Berry John Burt ' Carl Hayes Ed Gondek Charles Madsen ' Richard Perkins Robert Tarrant * Indicates chair 1 vii Fire Protecti Area #1 Advisory Board (5 Scott Arndt Sid Cozart Charles Lorenson *Horace Simmons Bill Swearingin Bav View Road _ Service District Advisory B oard Dawn Black Reed Oswalt Randy Chase *Sid Cozart Dave Kubiak Monashka Bay Road Service District Advisory Board (5 Eric Blankenburg Roxy Bringgold Ilva Fox Dan Ogg *Bill Swearingin Kodiak Island Transport Stu Steering Committee (KITS) (5 Alan Austerman Bob Brodie Al Cratty Gordon Gould Jerome Selby CHU SEA l m � J Q � vnRTntu Fl- B w AN ALE UTIAN#bM a ��A ARCTIC OCEAN STATE OF ALASKA ELECTORATE BOROUGH ASSEMBLY (ELECTED) N• k MAYOR (ELECTED) SERVICE DISTRICT ADVISORY BOARDS (ELECTED) MONASHKA BAY ROAD SERVICE DISTRICT *OMENS BAY ROAD SERVICE IFIRE DISTRICT SERVICE DISTRICT NO I -ROAD, WATER, SEWER FIRE DISTRICT NO i - (BAYVIEW) SCHOOL BOARD (ELECTED) SUPERINTENDENT OF SCHOOLS SCHOOL STAFF GENE FACILITIES ENGINEERING FINANCE BUILDING INSPECTOR � I ADMINISTRATION I I DEPARTMENT I I DEPARTMENT � � DEPARTMENT � � DEPAR MENT DATA 4ASSESS MENTAL SERVICES HEALTH DEPARTMENT NT CENTER HOSPITAL PLANNING AND CITIZENS ADVISOR) ADVISORY BOARD ZONING COMMISSION BOARDS/COMMISSION( , (APPOINTED BY ASSEMBLY) (APPOINTED BY ASSEMBLY) ( APPOINTED BY ASSEMBLY) PERSONNEL BOARD HOSPITAL BOROUGH ARCHITECTURAL. REVIEW ADMINISTRATOR PARKS AND RECREATION ATTORNEY BOARD OF EQUALIZATION MENTAL HEALTH CENTER ECONOMIC DEVELOPMENT HOSPITAL STAFF BOROUGH OCS ADVISORY COUNCIL CLERK BUILDING CODE BOARD OF APPEALS KITS COMMITTEE MAYOR (ELECTED) SERVICE DISTRICT ADVISORY BOARDS (ELECTED) MONASHKA BAY ROAD SERVICE DISTRICT *OMENS BAY ROAD SERVICE IFIRE DISTRICT SERVICE DISTRICT NO I -ROAD, WATER, SEWER FIRE DISTRICT NO i - (BAYVIEW) SCHOOL BOARD (ELECTED) SUPERINTENDENT OF SCHOOLS SCHOOL STAFF GENE FACILITIES ENGINEERING FINANCE BUILDING INSPECTOR � I ADMINISTRATION I I DEPARTMENT I I DEPARTMENT � � DEPARTMENT � � DEPAR MENT DATA 4ASSESS MENTAL SERVICES HEALTH DEPARTMENT NT CENTER j r r Kodiak IslandBorough December 21, 1988 710 MILL BAY ROAD KODIAK, ALASKA 99615.6340 PHONE (907) 486 -5736 To the Honorable Borough Mayor and Borough Assembly Kodiak Island Borough Kodiak, Alaska The comprehensive annual financial report (CAFR) of the Kodiak Island Borough (Borough), Kodiak, Alaska for the fiscal year ended June 30, 1988 is submitted herewith. The report was prepared by the Borough Finance Department. Respor:si- bility for the accuracy, completeness and fairness of presentat on, including all disclosures, rests with the Borough. We believe the data, as presented, is accurate in all material respects, that it is presented in a manner designed to fairly set forth the financial position and results of operations of the Borough as measured by the financial activity of its various funds, and that all disclosures necessary to enable the reader to gain maximum understanding of the Borough's financial affairs have been included. BACKGROUND The Kodiak Island Borough lies at the western border of the Gulf ')f Alaska, about 40 miles south of the Kenai Peninsula. The Kodiak Island Borough is separated from the Alaska Peninsula by the Shelikof Strait which is only 20 miles wide in places. The Kodiak Island Borough encompasses 4,900 square miles, or about the same area as the State of Connecticut. THE ORGANIZATION OF THE GOVERNMENT The Kodiak Island Borough was incorporated September 30, 1963 as a Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. The Kodiak Island Borough is governed by a Strong Mayor /Assembly form of government. The Kodiak Island Borough assembly is composed of seven members who are elected at large. X u 1 1 r n 1 u REPORTING ENTITY The funds related to the Kodiak Island Borough included in our CAFR are considered to be within the oversight responsibility of the Borough Assembly. The criteria used in determining the reporting entity are consistent with the National Council on Governmental Accounting (NCGA) Statement 3, "Definition of a Reporting Entity ". Based on these criteria, the various funds and account groups (being all the funds and account groups of the Borough) shown in the Table of Contents are included in this report. SERVICES PROVIDED The Kodiak Island Borough provides education, health, garbage collection public improvements, and general admin education through the Kodiak Island contracted with Lutheran Homes and Hospital. a variety of services including and disposal, planning and zoning, istration. The Borough provides for Borough School District and has Hospital to operate the Borough The Borough has oversight responsibility for four road service districts and two fire protection districts. The Borough is responsible for operating the sanitary landfill and provides water and sewer services. REPORTING STANDARDS This report was prepared in accordance with the revised principles prescribed by the National Council on Governmental Accounting, the American Institute of Certified Public Accountants, the Borough Code, and the Government Finance Officers Association. FINANCIAL STATEMENT FORMAT This comprehensive annual financial report is presented in three main sections: introductory, financial, and statistical. The introductory section includes background on the Borough, the Fund accounting concept ACCOUNTING SYSTEMS AND BUDGETARY CONTROL The Kodiak Island Borough uses the modified accrual basis for governmental funds and the accrual basis for enterprise funds. Under the modified accrual basis of accounting, revenues are recognized when measurable and available and expenditures are recognized when incurred. xi used by the Borough, and some financial presentations. The financial section includes the independent auditors report, combined statements, notes to financial statements, and more — detailed combining and individual statements and schedules. The statistical section includes selected ' financial and general information presented on a ten year comparative basis. ACCOUNTING SYSTEMS AND BUDGETARY CONTROL The Kodiak Island Borough uses the modified accrual basis for governmental funds and the accrual basis for enterprise funds. Under the modified accrual basis of accounting, revenues are recognized when measurable and available and expenditures are recognized when incurred. xi Budgetary control is maintained by an annual appropriation system supple- mented by a supplemental appropriation approximately half way through the fiscal year. Budgetary control is also maintained through the use of an encumbrance system. As purchase orders, contracts and other obligations are issued, corresponding amounts of appropriations are reserved by the use of encumbrances so that appropriations will not be overexpended. All new monies are appropriated by a public hearing and the adoption of an appropriation ordinance. Appropriation transfers are made between funds and /or departments only after the adoption of a resolution by the Assembly. Appropriation transfers between line items within a fund are effectuated by staff. INTERNAL CONTROL The accounting system of the Kodiak Island Borough is dependent upon a strong system of internal control. The Finance Director of the Borough also acts as the internal auditor of the Borough. The Borough is concerned with both aspects of internal control, reliable and accurate financial information and the safeguarding of Borough assets. As much as possible, in a small office, duties are segregated and no one person has complete control over one area. Management is extremely aware of the importance of good internal controls. Although present controls are highly satifactory and adequate, they continue to be scrutinized periodically for enhancements. GENERAL GOVERNMENT FUNCTIONS A. General Fund Only the General Fund of the Kodiak Island Borough is considered in the following explanation of general governmental functions. Revenues for general government totaled $5,236,553 and operating transfers were $114,635. This was an increase of $244,521 and $57,545, respectively over 1987. General property taxes produced 46.6% of general revenues in 1988 compared with 43.3% in 1987. The amount of revenues from various sources and the increase or decrease over last year are shown in the following tabulation: Increase (Decrease) Revenue Source and Other Amount Percent Over 1987 Financing Sources ( Thousands ) of Total (Thousands) Property taxes $2,491.1 46.6 $302.4 Licenses and permits 98.0 1.8 (40.1) Intergovernmental revenue 2,291.6 42.8 177.2 Charges for services 0.1 - (99.2) Miscellaneous 355.8 6.7 (95.7) Operating transfers 114.6 2.1 57.5 $5.351.2 100.0 $302.1 xii Assessed property valuation of $428.8 million represented an increase of 5.9390 over the preceding year. As part of the statistical section of this report, there is reported the tax collection experience for the immediate past ten years. It should be noted that the rate of delinquency remains extremely low. Expenditures and transfers for general governmental purposes totaled $5,578,069, an increase of 8.990 over 1987. Changes in levels of expenditures for major General Fund functions of the Borough over the preceding year are shown in the following tabulation: The fund balance of the General Fund continues to undergo a critical periodic review. 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 current year property tax is again down slightly. The following table reflects fund balance at the close of the fiscal years ended June 30: 1981 $3,293,670 1982 Increase (Decrease) 1983 Amount Percent Over 1987 Function ( Thousands ) of Total (Thousands) 1987 2,475,747 1988 General government $1,416.4 25.47 $(60.1) Public safety 163.7 2.9 77.4 Public works 91.4 1.6 (92.8) Health and sanitation 466.0 8.4 (33.9) Education 177.4 3.2 23.1 Conservation and development 293.2 5.3 (49.3) Operating transfers 2,970.0 53.2 589.8 5 578.1 100.0 454.2 The fund balance of the General Fund continues to undergo a critical periodic review. 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 current year property tax is again down slightly. The following table reflects fund balance at the close of the fiscal years ended June 30: 1981 $3,293,670 1982 5,478,183 1983 2,684,707 1984 2,742,239 1985 2,661,914 1986 2,532,100 1987 2,475,747 1988 2,248,866 B. Special Revenue Funds 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, for sale to individuals. Ten land sales have previously been held. No additional sales are planned for fiscal year 1989. xiii C. 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. A listing of all capital improvement projects, at various stages of completion, are delineated in Schedule 24. The revenue to support the capital projects were provided by a variety of sources, the most significant being school bonds of $38.93 million in the 1980's. These bonds were issued in four increments of $12.1 million in August 1980, $7.4 million in June 1984, $9.5 million in May 1985 and $9.93 million in June 1986. Equally important, but of a lesser concern to the average citizen, are the many millions of dollars from the State of Alaska for a variety of capital projects. Many of these capital projects were fully funded by the State. D. Enterprise Funds As required by the Governmental Accounting Standards Board Statement 1, the Kodiak Island Hospital financial statements are included in the Comprehensive Annual Financial Report as Enterprise Funds. The Borough has three other enterprise funds namely water, sewer and sanitary landfill. The water and sewer funds are maintained separately on the Borough books but are combined in the report for ease of reporting. E. 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 funds. The accountability for fixed assets of the Borough has been greatly facilitated by the use of computer programs. Currently, all fixed asset records are maintained on an IBM PC and hopefully will become part of the integrated system in the near future. F. Debt Service Fund This fund was established to finance and account for the payment of principal and interest on all general obligation debts other than those which are payable exclusively from special assessments and revenue debts 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: x iv 1 L 1 11 Moody's Standard Investors Service and Poors General obligation bonds General obligation refunding bonds General obligation variable rate 1984 General obligation variable rate 1986 CASH MANAGEMENT BAA -1 BBB BAA -1 AAA MIG -1 AA + /A -1+ The Borough treasurer operates as the central treasurer for all Borough, School District and Mental Health Center monies. 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 that we invest only in high grade securities that are fully collateralized. Further, the collateral is to be held by a third party bank. Cash management is a strong point of your current treasurer. Monies, naturally, cannot be invested until received and deposited. 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 required 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 deposited daily and intact and all idle funds are invested on the following day. We do recognize that there is frequently some exposure to uninsured and uncol lateral ized deposits. We have made great strides in minimizing this exposure through increased collateral and selection of banks and brokers with additional insurance. An account is now used (established February 1988) with the local servicing bank to daily sweep the total balances to another account. That account is collateralized by U.S. Treasuries at 102. Collateral is held by a third party bank. 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 than 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, it is necessary to have adequate funding in place to accomplish the assigned tasks. xv 1 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 - 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 risen and are now in excess of a million dollars annually. 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 cost where possible while providing adequate coverage. DATA PROCESSING In September 1983, an IBM System /38 was purchased and installed by the Kodiak Island Borough to replace its then existing IBM System /34. The current IBM /38 configuration is: 5381 5218 Printer (Clerk) Model 200 CPU 6MB 5251 Display Station (7) 9332 Storage 40OKB (2) 5291 Display Station (4) 3370 Storage 2MB (2) 5291 PC /Display Local (10) 3411 Magnetic Tape Unit 5291 PC /Display - Remote (3) 3262 Printer 5292 PC /Display Station (2) 5225 Printer (2) 5224 Printer (Shipping/ 5256 Printer (High School) Receiving) In 1987, three elementary schools were connected to the Host IBM System /38 Computer via dedicated lease line at each school. The three schools are now interfacing to the School District's school reporting and school financial systems. Several IBM PCs were purchased and are used in a dual purpose, as a standalone computer and as a terminal connected to the IBM System /38. An uninterruptable power supply (UPS) was purchased and installed to provide backup electrical power in case power is lost. This will ensure that there is no loss of data due to power outage. Data services equally serve the Borough departments and the Kodiak Island Borough School District. xv i ij 1 fi 1 11 �I� iI SIGNIFICANT EVENTS AND ACCOMPLISHMENTS During this period, the Borough was successful in being granted judgment against a major firm in an asbestos litigation. The eventual settlement and receipt has netted the Borough approximately $1,268,000 after deductions of attorney fees. A tragic event, with no loss of life, was the destruction of the Port Lions school by fire. It readily became evident that the Borough was properly insured. The carrier was on the scene almost immediately with front end money and a just settlement was reached without delay and was promptly paid. PARTICIPATION IN GFOA CERTIFICATE OF ACHIEVEMENT PROGRAM The GFOA of the United States and Canada awards a Certificate of Achieve- ment for Excellence 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. 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 Assembly. This requirement has been complied with and the auditor's opinion has been included in this report. xvii Existing applications: Both entities have the basics such as an integrated financial and reporting system and a payroll system. Other current applications are as follows: Borough School District Utility Billing System Financial Accounting System Financial Accounting System Building Maintenance System Property Tax Fixed Assets Land Sale Inventory Labels - Letters Text Management Future Applications: Borough School District Land Sale /Billing System Preventive Maintenance File Maintenance Procedures Integrated Budget Process New Fixed Assets System Implementing AutoCad System Point -of -Sale System The Data Processing Department is now staffed with four positions; a manager, programmer /analyst, a programmer and an operator. SIGNIFICANT EVENTS AND ACCOMPLISHMENTS During this period, the Borough was successful in being granted judgment against a major firm in an asbestos litigation. The eventual settlement and receipt has netted the Borough approximately $1,268,000 after deductions of attorney fees. A tragic event, with no loss of life, was the destruction of the Port Lions school by fire. It readily became evident that the Borough was properly insured. The carrier was on the scene almost immediately with front end money and a just settlement was reached without delay and was promptly paid. PARTICIPATION IN GFOA CERTIFICATE OF ACHIEVEMENT PROGRAM The GFOA of the United States and Canada awards a Certificate of Achieve- ment for Excellence 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. 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 Assembly. This requirement has been complied with and the auditor's opinion has been included in this report. xvii PROSPECTS FOR THE FISCAL YEAR 1989 The Assembly of the Kodiak Island Borough has again adopted a balanced budget for fiscal year 1989. This has been our policy for several ears. In recent years, we have adopted and executed a budget that is -alanced 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. 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 monies from those who pay promptly. At fiscal year end, uncollected taxes, of all prior years, were only some $25,000 as contrasted to over a million dollars in 1981. No plans have been formalized to ask the electorate to approve any future bond issue. Some plans for possible bonding are in their infancy. The State has granted the Borough in excess of $2 million for design and construction of a new hospital. Revenue bonds may be necessary to meet the additional 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. The economy of Kodiak remains very healthy. We are in another good fishing season and, while not as strong as a few years ago, preliminary reports tend to suggest this will be another banner year. 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. I wish to thank your office and the members of the Borough Assembly for their interest in and support of the planning and conducting of the financial operations of the Borough in a responsible and ' progressive manner. Respectfully submitted, ' /'00 BRYCE S. WEEKS DIRECTOR OF FINANCE xviii s 1 1 Fl SECTION 2 FINANCIAL SECTION 1 11 1 11 'J n E&M Ernst &Whinny Suite 601 301 W. Northern Lights Boulevard Anchorage, Alaska 99503 907/279 -1411 REPORT OF INDEPENDENT AUDITORS The Honorable Mayor and Borough Assembly Kodiak Island Borough We have audited the accompanying combined financial statements of the Kodiak Island Borough (Borough) as of and for the year ended June 30, 1988, as listed in the table of contents. These financial statements are the responsibility of the Borough's management. Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statements of the Kodiak Island Borough Hospital, which statements reflect total assets of 31 percent and revenues of 87 percent of the related totals of the Proprietary Fund Type Enterprise Funds. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Kodiak Island Borough Hospital, is based solely on the report of the other auditors. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of other auditors provide a reasonable basis for our opinion. In our opinion, based on our audit and the report of the other auditors, the combined financial statements referred to above present fairly, in all material respects, the financial position of the Kodiak Island Borough at June 30, 1988, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. -1- F, 1 Our audit was made for the purpose of forming an opinion on the combined financial statements taken as a whole. The combining, individual fund and individual account group financial statements and schedules 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. Such information has been subjected to the auditing procedures applied in our audit of the combined financial statements and, in our opinion, based on our audit and the report of other auditors, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. Statistical tables and data listed in the "Statistical Tables" of the accompanying table of contents were not audited by us and, accordingly, we do not express an opinion on them. 414-� V December 21, 1988 u FJ KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1988 See accompanying notes. -3- G Fu Special Debt Capital ASSETS General Revenue Service _Projects Current assets: Equity in central treasury $ - $3,163,614 $1,117,275 $2,321,177 Temporary investments 5,000,961 2,265,244 4,473,809 6,129,654 Other cash and cash equivalents 3,702 14,499 1,445,913 - Investment in deferred compensation plan - _ _ _ Receivables: State of Alaska 968,914 789,685 118,108 55,676 Property taxes, net of allowance for uncollec- tibles of $9,133 in 1988 and $11,200 in 1987 2,133,381 - Land sales contracts, due within one year - 257,200 Other, net of allowance for doubtful receivables of $312,976 in 1988 and $179,894 in 1987 111,495 194,364 71,084 230,892 Due from other funds - - - 243,481 Inventories - 230,064 - - Prepaids 49,643 6,130 - - Restricted assets: Equity in central treasury - - Temporary investments - Receivable from State of Alaska - - Land sales contracts receiv- able, due after one year - 1,978,712 - - Borough designated investment - - _ _ Long -term receivable from Lutheran Hospitals and Homes Society of America - - - - Amount available to service long -term debt in Debt Service Funds - - - - Amount to be provided to service long -term debt - - _ _ Fixed assets in service - - - _ Accumulated depreciation - - _ _ Construction work in progress - - - - $8,268,096 $8,899,512 $7,226,189 $8,980,880 See accompanying notes. -3- EXHIBIT A Proprietary Fiduciary Totals Fund Type Fund Type Account Groups (Memorandum Only) Agency General General Long - Enterprise Funds Fixed Assets Term Debt 1988 1987 $ 45,266 $ - $ - $ - $ 6,647,332 $ 5,768,312 200,000 - - - 18,069,668 22,577,362 231,508 113,236 - - 1,808,858 1,604,809 - 383,248 - - 383,248 356,886 _ _ - - 1,932,383 2,135,679 2,133,381 2,028,235 _ _ - - 257,200 297,696 1,830,617 236 - - 2,438,688 2,632,687 - - 243,481 52,023 173,803 _ = 403,867 371,416 _ _ - - 55,773 397,055 180,127 - - - 180,127 119,057 _ _ _ _ - 750,000 367,813 - - - 367,813 220,000 _ _ - - 1,978,712 2,090,860 810,397 - - - 810,397 760,134 r 1,846,000 - - - 1,846,000 1,118,000 - - - 7,245,067 7,245,067 7,423,507 - - - 12,642,105 12,642,105 14,210,291 23,521,034 62,026,972 85,548,006 81,796,194 (3,061,592) - - - (3,061,592) (2,459,917) 87,897 - 9,763,157 - 9,851,054 4,009,951 $26.232.870 $426,720 $71,790,129 $19,887,172 $151,781,568 $148,260,237 -4- KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS (Continued) June 30, 1988 LIABILITIES AND FUND EQUITIES Liabilities: Bank overdraft Advance from central treasury Accounts payable Retainage payable Salaries payable Payroll taxes and employee benefits Other accrued liabilities Customer deposits Deferred and unrealized revenues Deferred compensation Due to other funds Due to student organizations Payable from restricted assets: Contracts payable Retainage payable Unearned grant receipts Accrued annual leave General obligation bonds payable Environmental Protection Agency loan Total liabilities Fund equities: Contribution in aid of construction Investment in general fixed assets Retained earnings Fund balance: Reserved: Encumbrances Fuel inventory Unreserved: Designated: Working capital Subsequent year expenditures Undesignated Total fund equities Go Fund Types Special Debt Capital General Revenue Service Projects 3,787,908 47,884 - 1,012,499 28,063 289,192 - 258,663 - - - 439,323 - 848,800 - 78,421 607,150 - - 7,934 - 785 - 300 - 2,116,904 2,393,319 - 1,266,532 243,481 - - 2,750,000 - � f 6.0 9,230 4,430,126 785 5,727,017 26,819 129,312 - 5,185,715 - 73,680 - - s s 1,250,000 - - - 3 972,047 290,000 7,225,404 1,791,106 3,976,394 - X72 2,248 866 4,469,386 7,225,404 3,253,863 $8,268,096 $8,899,512 $7,226.189 $ 8,980,880 P See accompanying notes. j -5- i EXH_I BIT _ A (Continued) Proprietary Fiduciary Totals Fund Type Fund Type Account Gro (Memorandum Only) Agency General General Long - Enterprise Funds Fixed Assets Term Debt 1988 1987 $ _ $ _ $ _ $ - $ - $ 9,710 - 4,848,291 5,070,332 52,000 6,461 - - 634,379 686,090 _ _ - - 439,323 297,445 240,451 - - - 1,089,251 970,595 - - - - 685,571 652,532 5,967 - - - 14,686 27,090 7,301 - - - 7,601 10,806 _ _ - - 5,776,755 5,856,552 - 383,248 - - 383,248 356,886 _ - - - 243,481 52,023 - 107,011 - - 107,011 101,121 19,995 - - - 19,995 364,472 40,651 - - - 40,651 146,449 _ _ _ - - 3,364 - - - 133,423 133,423 144,215 - - - 19,410,000 22,160,000 25,925,000 - - - 343. 343, 36 4 ,5 83 366.365 496,720 - 19,887,172 36,927.4 41,039,265 20,755,422 - - - 20,755,422 16,845,592 - - 71,790,129 - 71,790,129 66,554,875 5,111,083 - - - 5,111,083 3,995,692 - - - - 5,341,846 3,122,150 - - - - 73,680 72,166 - - - - 1,250,000 1,250,000 - - - - 10,278,557 12,639,288 - - - - 25 2 ,741.209 25,866,505 - 71,790,129 - 114. 54 ,153 _ 107,220,972 $26.232,870 $426,720 $71.790.129 $19,887,172 $151.781.568 $148.260.237 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year ended June 30, 1988 Revenues: Property taxes Intergovernmental: State sources Federal sources Land sale proceeds Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures: Current: Borough Assembly Mayor's department Clerk's department Finance department Legal department Assessment department Community development department Engineering department Health and sanitation Data services Resource management General administration Building inspector's department Emergency preparedness Facilities coordinator department Community and regional affairs liaison Education support Economic development Capital improvements: Schools Service district maintenance General Debt service Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Insurance proceeds Asbestos settlement Demand bond principal payments Operating transfers in Operating transfers out Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Fund balance at beginning of year Adjustment to reserve for fuel inventory Fund balances at end of year See accompanying notes. 355,902 441,680 5.2 6,553 21,007,502 39,675 Special General Revenue $ 2,491,065 $ 181,091 2,290,007 18,433,953 1,620 788,491 - 588,547 97,959 573,740 355,902 441,680 5.2 6,553 21,007,502 39,675 - 140,529 - 152,543 - 228,706 - 79,491 - 159,481 - 212,139 36,148 64,787 - 465,954 1,415,210 178,519 - 52,430 - 432,211 690,399 82,806 - 80,903 - 26,656 - 5,166 - 177,405 15,467,882 28,668 - 131,240 - 12,634 2.608 17.753.513 2,628.484 3.253.989 114,635 2,490,539 (2.970.000 (4, 612) (2.855.365 (2.104.073 (226,881) 1,149,916 2,475,747 3,317,955 - 1.515 $ 2.248.866 $ 4.469.386 -7- EXHIBIT B Debt Capital Service Projects 1,280,557 - 5,000 488. 70 x 488,470 1,942,530 7,595,506 1,779,220 5,481 - 5,481,302 9.374.726 (4.992.832 (7.432.196 - 1,414,685 - 634,061 - 2,050,000 4,812,557 893,512 (17,828 (913 ,803) 4.794.729 4.078.455 (198,103) (3,353,741) 7,423,507 6,607,604 $ 7.225.404 $ 3.253.863 Totals (Memorandum Only) 1988 1987 $ 2,672,156 $ 2,384,653 22,004,517 26,784,912 790,111 935,835 588,547 493,230 676,699 1,802,531 1.943.025 2.210.335 28,675,055 34,611,496 39,675 46,584 140,529 122,886 152,543 154,011 228,706 204,855 79,491 62,876 159,481 160,839 248,287 228,149 64,787 134,126 1,881,164 1,791,192 178,519 277,410 52,430 53,324 1,122,610 1,249,439 82,806 64,629 80,903 21,656 26,656 50,071 5,166 4,613 15,645,287 15,316,326 28,668 70,637 7,595,506 3,187,372 131,240 96,425 1,791,854 7,235,049 5,481,302 6,537,801 35,217,610 37,070,270 (6.542.555 (2.458.774 1,414,685 - 634,061 - 2,050,000 1,850,000 8,311,243 9,350,160 (8,496,243 (9.353,160 3.913.746 1.847.000 (2,628,809) (611,774) 19,824,813 1.515 20,426,519 10.068 $17.197.519 $19.824.813 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND, SPECIAL REVENUE FUNDS AND DEBT SERVICE FUNDS Year ended June 30, 1988 neral Fun Revenues: Property taxes Intergovernmental: State sources Federal sources Land sale proceeds Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures: Current: Borough Assembly Mayor's department Clerk's department Finance department Legal department Assessment department Community development department Engineering department Health and sanitation Data services Resource management General administration Building inspector's department Emergency preparedness Community and regional affairs liaison Facilities coordinator department Education support Economic development Capital outlay: Capital improvements Debt service: Principal Interest Fiscal agent fees Other Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expen- ditures and other financing uses Fund balance at beginning of year Adjustment to reserve for fuel inventory Fund balances at end of year 122,730 97,959 Variance 228,625 5,007,935 355,902 5,236,553 Favorable Budget Actual ( Unfavorable ) $ 2,541,800 $ 2,491,065 $(50,735) 2,114,060 2,290,007 175,947 720 1,620 900 122,730 97,959 (24,771) 127,277 228,625 5,007,935 355,902 5,236,553 228,618 49,100 39,675 9,425 140,900 140,529 371 147,350 152,543 (5,193) 223,940 228,706 (4,766) 76,550 79,491 (2,941) 174,070 159,481 14,589 217,300 212,139 5,161 67,880 64,787 3,093 466,000 465,954 46 176,960 178,519 (1,559) 52,680 52,430 250 432,330 432,211 119 80,000 82,806 (2,806) 105,000 80,903 24,097 15,790 5,166 10,624 11,270 26,656 (15,386) 172,500 177,405 (4,905) 50,000 28,668 21,332 Special Revenue Funds Bu d eg t $ 198,590 19,326,453 1,235,427 430,000 523,840 357.330 22,071,640 Actual $ 181,091 18,433,953 788,491 588,547 573,740 441 ,684 21.007.502 406,220 1,435,188 771,240 36,148 1,415,210 690,399 J 16,624,837 15,467,882 _ _ = 270,860 2.659.620 2.608.069 51,551 19,508,345 2,348,315 2,628,484 280,169 52,680 114,635 61,955 (2.970.000 (2.970.000 - (2,917,320) (2,855,365) 61,955 (569,005) (226,881) 342,124 2,000,420 2,475,747 475,327 $ 1.431.415 $ 2.248.866 017,451 See accompanying notes. 143,874 17,753,513 r 2,563,295 3,253,989 2,460,879 2,490,539 (5.246.259 (4.594.612 (2,785,380) (2,104,073) i (222,085) 1,149,916 3,317,955 3,317,955 1.515 1.515 $ 3.097.385 $ 4.469.386 EXHIBIT C Debt Service Funds Totals (Memorandum Only) Variance Variance Variance Favorable Favorable Favorable ( Unfavorable ) Budget Actual ( Unfavorable ) Budget Actual ( Unfavorable ) $ (17,499) $ - $ - $ - $ 2,740,390 $ 2,672,156 $ (68,234) (892,500) - - - 21,440,513 20,723,960 (716,553) (446,936) - - - 1,236,147 790,111 (446,036) 158,547 - - - 430,000 588,547 158,547 49,900 - - - 646,570 671,699 25,129 84,35 �4 4 00 488,470 88,470 985,955 1,286,052 300,047 (1,064,138 400,000 488,470 88,470 27,479,575 26,732,525 (747,050 _ - - - 49,100 39,675 9,425 - - 140,900 140,529 371 _ - - - 147,350 152,543 (5,193) _ _ - - 223,940 228,706 (4,766) _ _ - - 76,550 79,491 (2,941) - - - - 174,070 159,481 14,589 370,072 - - - 623,520 248,287 375,233 _ _ - - 67,880 64,787 3,093 19,978 - - - 1,901,188 1,881,164 20,024 - _ - - 176,960 178,519 (1,559) - - - - 52,680 52,430 250 80,841 - - - 1,203,570 1,122,610 80,960 _ _ _ - 80,000 82,806 (2,806) _ - - - 105,000 80,903 24,097 - _ - - 15,790 5,166 10,624 - - - - 11,270 26,656 (15,386) 1,156,955 - - - 16,797,337 15,645,287 1,152,050 - _ - - 50,000 28,668 21,332 126,986 - - - 270,860 143,874 126,986 - 4,335,830 3,785,834 549,996 4,335,830 3,785,834 549,996 - 1,811,940 1,546,117 265,823 1,811,940 1,546,117 265,823 - 127,230 148,874 (21,644) 127,230 148,874 (21,644) 225,000 477 224,523 225,000 477 224 ,)2) 1,754,832 6,500,000 5,481,302 1,018,698 28,667,965 25,842,884 2,825,081 690,694 (6,100,000) (4,992,832) 1,107,168 (1,188,390) 889,641 2,078,031 29,660 5,507,850 4,805,521 (702,329) 8,021,409 7,410,695 (610,714) 651,647 - (8.216.259 (7,564,612 651,647 681,307 5,507,850 4,805,521 (702,329) (194,850) (153,917) 40,933 1,372,001 (592,150) (187,311) 404,839 (1,383,240) 735,724 2,118,964 - 7,279,292 7,279,292 - 12,597,667 1,515 13,072,994 1,515 475,327 $ 1,372,001 $ 6.687,142 $ 7.091.981 $ 404.839 $11,215.942 $13.810.233 $2.594.291 -10- EXHIBIT D 1 KODIAK ISLAND BOROUGH PROPRIETARY FUND TYPE - ENTERPRISE FUNDS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Year ended June 30, 1988 with comparative figures for 1987 1 Other income: Interest income 1988 1987 Revenues: Water sales $ 172,875 $ 156,901 Sewer service charges 216,125 184,762 j Sanitary landfill user fees 449,488 158,942 Patient revenues 6,087,580 5,009,194 Installation charges 33,014 94,463 Other 1 03,333 99. 188 Total revenues 7,062,415 5,703,450 Operating expenses: Personal services 149,729 50,896 Purchased water and sewer treatment 216,890 235,781 Contracted services 487,465 146,613 Repairs and maintenance 41,463 24,989 Depreciation 626,269 446,413 Installation costs 27,112 76,641 Professional care of patients 2,704,084 2,483,452 Plant operations and household 906,166 875,788 General administrative 1,580,947 1,538,427 E Other 116,435 22,9 Total operating expenses 6,856,560 5,901,908 Operating income (loss) 205,855 (198,458 's Other income: Interest income 22,933 95,900 Other, primarily State of Alaska revenue sharing 34 3_.101 317.603 366.034 413.503 Earnings before operating transfers 5 71 x 882 215,045 Operating transfers in 290,000 - Operating transfers out x.1 05.00 0) - Net operating transfers 185,00 - Net earnings 756,889 215,045 Amortization of contribution in aid of construction 3 58 502 1 27 1 077 Increase in retained earnings 1,115,391 412,122 Retained earnings at beginning of year 3.995,69 3.583,570 Retained earnings at end of year $5,111.083 $3,995.692 See accompanying notes. KODIAK ISLAND BOROUGH EXHIBIT E PROPRIETARY FUND TYPE - ENTERPRISE FUNDS STATEMENT OF CHANGES IN FINANCIAL POSITION Year ended June 30, 1988 with comparative figures for 1987 Sources of working capital: Operations: Net earnings Add: Depreciation which does not use working capital Working capital provided by operations State of Alaska grants Contribution from the Kodiak Island Borough General Fund for purchase of equipment Net decrease in restricted assets Total sources of working capital Uses of working capital: Acquisition of fixed assets Increase in long -term receivable Funding of Borough designated investments Net decrease in current liabilities payable from restricted assets Total uses of working capital Increase (decrease) in working capital Changes in components of working capital: Increase (decrease) in: Current assets: Equity in central treasury Other cash and cash equivalents Receivables Inventories Prepaid expenses Current liabilities: Bank overdraft Advance from central treasury Accounts payable Customer deposits Accrued liabilities Increase (decrease) in working capital 1988 1987 $ 756,889 $ 215,045 626,269 44 1,383,158 661,458 4,225,017 2,042,496 43,315 140,318 541,117 2,767.985 6,192.607 5,612.257 4,382,255 2,276,245 728,000 298,000 50,263 760,134 453.639 2 ,866, 281 5,614 157 6,200,660 $ 578,450 $ (588,403 $ (115,573) $ 12,911 431,508 (56,448) 245,566 (479,558) 27,559 11,870 (9,710) (2,601) (2,994) (3,205) 29,120 10,610 578,450 (12,3 (523,555 9,710 2,601 4,906 3,786 43,845 64,848 $ (588,403 See accompanying notes. -12- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1988 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Scope and Presentation of Financial Statements The Kodiak Island Borough (Borough) was organized to perform the municipal duties allowed by Alaska Statutes and as directed by its residents. The accompanying financial statements include all funds, account groups, agencies and organizations over which the Borough exercises oversight responsibility. Oversight responsibility is derived from the Borough's power and includes, but is not limited to (a) financial interdependency, (b) selection of governing authority, (c) ability to significantly influence operations and (d) accountability for fiscal matters. The Borough reviewed its relationship with other organizations and determined that it exercised oversight responsibility over the following two organizations. Kodiak Island Borough School District: The Borough has delegated the operating responsibility for public education to the Kodiak Island Borough 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 Assembly approves the total annual budget of the School District and may, during the year, increase or decrease the total appropriation. The Borough levies and collects taxes for the School District. The various funds and the general fixed asset account group of the School District have been combined with similar fund types and account groups of the Borough. Kodiak Island Borough Hospital: The Borough owns the Kodiak Island Borough Hospital (Hospital) and related furnishings. The Borough has contracted the Hospital's operating activities to the Lutheran Hospitals and Homes Society of America. By terms of that agreement, 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 as an enterprise fund. Fiscal Year Ends The Borough has a June 30 year end. The School District, as required by State Statute, has a June 30 year end. The Hospital has a December 31 year end and the accompanying financial statements include the financial position for the Hospital as of December 31, 1987, and the results of operations for the year then ended. -13- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Scope and Presentation of Financial Statements (Continued) Presentation The combined financial statements provide a summary overview of the financial position of all funds and account groups and of the operating results of all funds. These combined statements have been prepared from the detailed state- ments included in the combining and individual fund and account group statements and schedules included in this report. Total columns on the combined statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund 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 accounted 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: GOVERNMENTAL FUND TYPES General Fund - The General Fund is the general operating fund of the Borough. It is used to account for all financial resources except those required to be accounted for in 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. -14- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Scope and Presentation of Financial Statements (Continued) Debt Service Funds - The Debt Service Funds are used to account for the accu- mulation of resources for, and the payment of, general long -term debt prin- cipal, interest and related costs. Ca pital Projects F - Capital Projects Funds are used to account for financial resources to be used for acquisition or construction of major capital facilities and equipment. PROPRIETARY FUND TYPE Enterprise Funds - The Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar 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 recovered 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 Agen Fu nds - To account for assets held by the Borough as an agent for individuals and other entities. These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. 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 liabilities are generally included on their balance sheets. Their reported fund balances (net current assets) are 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 measurement of financial position. They are not involved with measurement of results of operations. -15- - 1 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) ' June 30, 1988 1 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Scope and Presentation of Financial Statements (Continued) General Fixed Assets ' Fixed assets used in Governmental Fund Type operations (general fixed assets) are recorded as expenditures of the various Borough funds at the time of purchase and are subsequently capitalized in the General Fixed Assets 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, including 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. Noncurrent portions of long -term receivables due to Governmental Fund Types are reported on their balance sheets, in spite of their spending measurement 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 General Long -Term Debt Account Group. -16- i KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Scope and Presentation of Financial Statements (Continued) PROPRIETARY FUND TYPE The Proprietary Fund Type is accounted for on a cost of services or capital maintenance measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with its activity are included 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 Enterprise Funds is charged as an expense against their operations on a straight -line basis over the following estimated useful lives: Utility plant 50 years Hospital - building and fixed equipment 28 -33 years Major movable equipment 5 -10 years Contributions in aid of construction for the Water and Sewer and Sanitary Landfill Enterprise Funds are amortized over the estimated useful lives of the assets acquired using the straight -line method. B. 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 statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. 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. Prepayment of insurance and similar services extending over more than one year are allocated to the years benefitted. Pursuant to this basis of accounting, material revenues which are both measurable and available are accrued and other revenues are recorded on the cash basis. Summarized below are the major sources of revenue and the appli- cable recognition policies: -17- 1 1 1 n KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Accounting (Continued) Property Taxes Property taxes are based on the assessed value of taxable property as of January 1. Pursuant to Alaska Statute 29.53.170, the Borough establishes the mill rate on or before June 15. Tax bills may be paid in two installments on August 15 and November 15; otherwise they are due and payable by October 15. Borough property tax revenues are recognized in the fiscal year for which they are levied and in which they become measurable and available; 1988 property tax revenue is represented primarily by calendar year 1987 property taxes received during the year ended June 30, 1988 or 60 days thereafter. At June 30, 1988, the 1988 real and personal property tax levy of $2,116,904 is reflected as deferred revenue of the General Fund. Intergo ernmental 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 government cost reimbursable grants and contracts (including grants for construction) are recorded to the extent of allowable expenditures in the period in which the expenditures were incurred. 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 balance 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 accounting. Its revenues are recognized when they are earned and its expenses are recognized when they are incurred. -18- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Accounting (Continued) The Fiduciary Fund Type (Agency Fund) is accounted for using the modified accrual basis of accounting similar to that utilized by Governmental Fund Types. C. Budgets and Budgetary Accounting The Borough The Borough follows these procedures in establishing the budgetary data reflected in the combined financial statements: a. The Mayor must submit to the Borough Assembly by April 30 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. c. 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 Mayor becomes the adopted budget. d. Amendments to the budget can occur anytime 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 established by Items (1) and (2) above by project or department to properly monitor, account, and report receipts and expenditures. Budgeted amounts for 1988 are as originally adopted (including supplemental appropriations on February 4, 1988 and May 5, 1988) or as ' amended by the Borough Assembly on March 17, 1988. Material appropriation changes were a $290,000 transfer from the general fund for operations of the sanitary landfill and the additional ' appropriation of approximately $2,737,000 for capital projects. -19- 1 1 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Budgets and Budgetary Accounting (Continued) g g Y e. Expenditures may not legally exceed appropriations at the following levels: General Fund - department level; Capital Projects Funds - project level; all other funds - fund level. f. 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. g. 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. h. 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, 1988, there were two formal budget revisions to adjust the revenues and expenditures to available resources and program needs. The Hospital Hospital operations are not legally required to be budgeted. D. Assets, Liabilities and Fund Equity Interfund Transactions Transactions that would be treated as revenues, expenditures or expense if they involved organizations external to the borough are similarly treated if they occur between the fund types. Reimbursements from one fund to another are treated as expenditures or expenses of the reimbursing fund and a reduction of the expenditures or expenses of the reimbursed fund. Transfers from funds receiving revenues to funds through which the resources are to be expended, and operating loss subsidies are classified as operating transfers. Nonrecurring or nonroutine transfers of equity between funds are recorded as equity transfers. -20- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities and Fund Equity (Continued) ENCUMBRANCES Encumbrance accounting, under which purchase orders, contracts and other com- mitments for the expenditure of monies 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 The Kodiak Island Borough Expendable operating supplies of the Borough are accounted for using the purchase method and, at June 30, 1988, there was no significant amount of such items. The School District ' 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 market, except USDA food inventory (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. ' The Hospital ' Inventories are stated at the lower of cost or market, with cost determined substantially on a FIFO basis. RETIREMENT PLANS All full -time employees of the Borough and School District participate in ' either the Alaska Public Employees' Retirement System (PEAS) or the Alaska Teachers' Retirement System (TRS). The Borough and School District accrue pension expense which includes current costs and amortization of prior service costs. The policy is to fund pension costs accrued. ' -21- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 � I 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities and Fund Equity (Continued) ANNUAL LEAVE 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 Debt Account Group. Cash suf- ficient 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. 2. CASH AND TEMPORARY INVESTMENTS Cash balances of most Borough funds are pooled in a central treasury. Each fund type's portion of this pool is displayed on the combined balance sheet as "Equity in (advance from) central treasury ". In addition, investments are separately held by several of the Borough's funds. Investments are carried at cost. Deposits ' At June 30, 1988, the carrying amount of the Borough's deposits was $3,035,016 and the bank balance was $2,591,352. Of the bank balance, $2,435,831 was covered by FDIC or other insurance or by collateral held by the Borough's agent in the Borough's name and $155,521 was uninsured and uncollateralized. The uninsured and uncol lateral ized deposits consist of the amount by which demand deposits exceeded FDIC insurance. ' The above deposits are reported under the following captions in the combined financial statements: Equity in central treasury $ 808,762 Temporary investments 1,863,309 Other cash and cash equivalents 362.945 $3.035.016 -22- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 2. CASH AND TEMPORARY INVESTMENTS (Continued) Investments Statutes authorize the Borough to invest in obligations of the United States, the State of Alaska and its political subdivisions, savings accounts, certificates of deposit, banker's acceptances, repurchase agreements and such other legal security instruments. The Borough's investments are categorized below to give an indication of risk assumed by the Borough at year end. Category 1 includes investments that are insured, registered or collateralized with securities held by the Borough or its agent in the Borough's name. Category 2 includes uninsured and unregistered investments or collateralized investments, with securities held by the pledging financial institution's trust department in the Borough's name. Category 3 includes uninsured, unregistered and collateralized investments, with securities held by the pledging financial institution or by its trust department but not in the Borough's name. The above investments are reported under the following captions in the I combined financial statements: Temporary investments $16,206,359 Equity in central treasury 1,170,406 $17.376.765 ' Statutes require all investments to be collateralized or insured. Collateral pledged on investments is required to be held for the Borough by a third party bank; however, during the year, the Borough often permitted collateral ' to be held in the pledging bank's name by the third party bank. Other Cash and Investments I In addition to the above cash and investments which are under the control of the Borough, the following are also reported in the financial statements: investments managed by deferred compensation plan administrators ($383,248) and cash with fiscal agents for payment of bond principal and interest ($1,445,913). -23- 1 Category Carrying ' _ 1._ 2 3 Amount Market Va lue Repurchase agreements $ — $ — $3,670,406 $ 3,670,406 $ 3,670,406 U.S. Government Securities 941,038 4,000,000 — 4,941,038 4,998,361 ' Municipal Securities 3,802,412 — — 3,802,412 3,337,700 Banker's Acceptances 2,899,180 — — 2,899,180 2,922,275 Commercial Paper 937,094 — — 937,094 998,311 X8,579.724 $4,000.000 $3.670,406 16,250,130 15,927,053 r Investment in broker — dealer U.S. Government securities fund 1.126,635 1.126.635 $17.376.765 $17,053.688 The above investments are reported under the following captions in the I combined financial statements: Temporary investments $16,206,359 Equity in central treasury 1,170,406 $17.376.765 ' Statutes require all investments to be collateralized or insured. Collateral pledged on investments is required to be held for the Borough by a third party bank; however, during the year, the Borough often permitted collateral ' to be held in the pledging bank's name by the third party bank. Other Cash and Investments I In addition to the above cash and investments which are under the control of the Borough, the following are also reported in the financial statements: investments managed by deferred compensation plan administrators ($383,248) and cash with fiscal agents for payment of bond principal and interest ($1,445,913). -23- 1 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 2. CASH AND TEMPORARY INVESTMENTS (Continued) Investments (including time certificates of deposit) made by the Borough are identified by the specific funding source. A summary of these investments at cost on June 30, 1988 follows: Special Debt Capital Enter — General Revenue Service Projects prise Fund Funds Funds Funds Funds Total Repurchase agreements — National Bank of Alaska 6.5 — 7.0% United States Govern— ment Securities: Seattle First National Bank 6.7% 7.35% 7.75% 8.9% Merrill Lynch, Pierce, Fenner and Smith, Inc. 8.45% Municipal Securities: Paine Webber, Inc. 4.0 — 7.0% Banker's Acceptances: Merrill Lynch, Pierce, Fenner and Smith, Inc. 7.21% 7.25% 7.84% Commercial Paper: Merrill Lynch, Pierce, Fenner and Smith, Inc. 9.01% United States Govern— ment Securities Fund: Merrill Lynch, Pierce, Fenner and Smith, Inc. Cash management account Total temporary investments Time certificates of deposit: Bank of Tokyo zero coupon Alliance Bank of Alaska 6.05% First Federal Bank of Alaska, S.B. 6.75% Total deposits $11 00 0.000 300_,000 $1.000.000 $ $ 200,000 2.5 Q 1.000.000 300.000 1.000.000 — 200.000 2.500.000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 941.038 2.000.000 1.000.000 9 1.673.809 2.128.603 1.673.809 2.128.603 — 970,945 — 965,244 — — 962.991 — — 962.991 965.244 — 970.945 937. 424 937.094 94 1_, 03$ 4.941.038 3.802.412 3,802.412 970,945 965,244 962.9 2.899.180 _ 9 3Z-094_ 937.094 1,037,970 — — 88.665 — 1 126.635 1.037.970 — 88.665 — 1.126.635 5.000.961 2.265.244 3.673.809 5.066.345 200.000 16.206.359 966,701 — 966,701 800,000 800,000 96.608 96.608 800.000 1.063.309 — 1.863.309 $5.000.961 SZ.265.244 $4.473.809 16.129.654 $200.000 $18.069.668 -24- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 3. 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 budgeted expenditures. In addition to the annual appropriation, the Borough provides the School District, without charge, general liability and property insurance and the annual independent audit. 4. HOSPITAL APPROPRIATION By terms of the operating agreement with the Lutheran Hospitals and Homes Society of America, the Borough is ultimately reponsible for operating losses (as contractually defined), if any, sustained by the Hospital. Shared revenue received by the Borough from the State of Alaska includes $175,000, 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. 5. RETIREMENT COMMITMENTS As of June 30, 1988, substantially all employees of the Borough and School District participate in either the Alaska Public Employees' Retirement System (PERS, an agent multiple - employer PERS) or the Alaska Teachers' Retirement System (TRS, a cost - sharing, multiple- employer PERS). Borough personnel and School District classified personnel (except those working less than fifteen hours per week) participate in PERS. School District certificated personnel participate in TRS. Both systems are statewide defined benefit retirement plans, administered by the State of Alaska. Plan Descriptions and Provisions Public Employees' Retirement System (PERS Employees hired prior to July 1, 1986 with five or more years of credited service are entitled to annual pension benefits beginning at normal retirement age 55 or early retirement age 50. For employees hired after June 30, 1986, the normal and early retirement ages are 60 and 55, respectively. The normal pension benefit is equal to 29 of the member's highest three average monthly compensation for the first ten years of service, 2 -1/4% for the second ten years of service and 2 -1/2% for the third ten years of service. All service earned prior to July 1, 1986 will be calculated using the 2% multiplier. Employees with 30 or more years of credited service may retire at any age and receive a normal benefit. The system also provides death and disability benefits and major medical benefits. -25- FA t CI LF1 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 5. RETIREMENT COMMITMENTS (Continued) Plan Descriptions and Provisions (Continued) Under state law, covered employees are required to contribute 6.75% of their annual salary to the System and the employer contributes the amount actuarially required in addition to employee contributions to finance the benefits of the system. Teacher Retirement Sys tem _(TR$ The Teachers' Retirement System of Alaska is a joint contributory retirement system to provide benefits for teachers of the State of Alaska. All the District's certificated employees are participants in TRS. Membership in TRS is compulsory for each certificated elementary or secondary teacher or other certificated personnel who are employed on a full -time or part -time basis in positions that require teaching certificates as a condition of employment. Employees with eight years or more of credited service are entitled to pension benefits beginning at normal retirement age (55) equal to 2% of their highest three -year average monthly compensation for each year of service. The Plan permits early retirement at age 50. Employees may elect to receive their pension benefits in the form of a joint or survivor annuity. Effective January 1, 1987, a married member who retires must receive his benefit in the form of a joint and survivor annuity unless the member's spouse consents to another form of benefit. Minimum benefits for employees eligible for retirement are $25 per month for each year of credited service. In addition, major medical benefits are provided. TRS also provides death and disability benefits. Under state law, covered employees are required to contribute 79 of their base salary earned from July 1 to the following June 30. The School District is required to contribute the amount actuarially needed in addition to member contributions to finance the benefits of the System. Funding Status and Progress The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the System on a going- concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the System. -26- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 5. RETIREMENT COMMITMENTS (Continued) Funding Status and Progress (Continued) The pension benefit obligation was computed as part of an actuarial valuation as of June 30, 1987. Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets of 9 percent per year compounded annually, (b) projected salary increases of 6.5 percent a year for the first five years of employment and 5.5 percent per year thereafter. Net assets available for benefits exceed the pension benefit obligation applicable to the Borough and School District's non - certificated employees by $894,000 at June 30, 1987. The TRS system does not make separate measurements of assets and pension benefit obligations for individual employers. Amounts for TRS were actuarially determined at June 30, 1987 and represent the system as a whole. Amounts shown in the following table for PERS and TRS are in thousands. TRS Total PERS System (A) Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits Current employees: Accumulated employee contributions including allocated investment earnings Employer -- financed vested Employer -- financed nonvested TOTAL PENSION BENEFIT OBLIGATION Net assets available for benefits, valued on a three year average ratio between market and book values of the System's assets except that fixed income investments are valued at book value $2,068 $ 578,468 1 838 210,493 3,017 353,326 1,090 68,622 7,013 1,210,909 7,907 _ "225 _ ,Q0 ASSETS IN EXCESS OF PENSION BENEFIT OBLIGATION 894 $ 14,100 (A) The District's contribution to TRS was 1.3% of total employer contributions to TRS for the year ended June 30, 1988. -27- t KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) ' June 30, 1988 5. RETIREMENT COMMITMENTS (Continued) Funding Status and Progress (Continued) The PERS pension benefit obligation of the District at June 30, 1987 has increased $542,000 as a result of changes in benefits. ' Actuarially Determined Contribution Requirements and Contributions Made The System's funding policy provides for actuarially determined periodic ' contributions at rates that fund each participant's benefits under the plan as they accrue. The contribution rate for normal cost is determined using the projected unit credit actuarial funding method. The unfunded accrued benefit liability is amortized over 25 years. Actuarial funding surpluses are amortized over five years. ' The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation. ' The Systems have an actuarial valuation performed annually (as of June 30) which determines the contribution rates for the year ended two years subsequent to the valuation date. The contributions to the Systems for fiscal year 1988 were made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1986. The contributions (in thousands) consisted of the following: PERS P Borough District TRS Percent of Percent of Percent of Covered Covered Covered Amount Payroll Amount Payroll Amount Payroll Covered payroll $1,830 100.0 $2,473 100.0 $7,123 100.0 Contributions: Normal cost $ 310 16.95 $ 419 16.95 $1,175 16.50 Amortization of unfunded lia- bility (funding surplus) 18) 1.00) (98 (3.96) 304 4.26 321 12.99 1 47 20.76 TOTAL 2 2 15.95 Employer $ 168 9.20 $ 154 6.24 $ 980 13.76 ' Employee 124 6.75 167 6.75 499 7.00 TOTAL 2 2 15.95 321 12.99 1 47 20.76 t Total current year payroll for the Borough and District was $11,847,000. KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 5. RETIREMENT COMMITMENTS (Continued) Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. The pension benefit obligation has not been determined by the actuary for years prior to June 30, 1987. As a result, only information at June 30, 1987 is available regarding the following trend indicators: PERS Borough District Assets available as a percentage of the pension benefit obligation 115% 112% Assets in excess of pension benefit obligation, expressed as percentage of covered payroll 16% 24% The Borough and District's contributions, which were made in accordance with actuarially determined requirements, have shown the following trend as a percentage of covered payroll for the three years ended June 30: Borough Distric PERS PERS IRS 1986 1987(A) 1988 11.26 12.65 8.88 4.27 7.29 6.88 9.20 6.24 13.76 (B) (A) The reduction in PERS contribution rates between 1986 and 1987 was primarily due to changes in actuarial assumptions. (B) Beginning in 1988, the District is required to fund all of the actuarially required annual amount in excess of participant contributions; previously, the State of Alaska and the District had each funded 50% of this requirement. -29- t u F, �'l KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 5. RETIREMENT COMMITMENTS (Continued) Retirement Incentive Program A Retirement Incentive Program (RIP) was established on May 15, 1986 under House Bill 382. The Program was designed to encourage eligible employees to voluntarily retire in order to reduce personnel service costs. The program was available through 1987. The System was to be reimbursed by the participating employer for the actuarial equivalent of the difference between the benefits the member receives after the addition of the retirement incentive under the program and the amount the member would have received without the incentive, less the amount the participant has paid as part of retiring under the program. The District paid the RIP obligation for TRS during 1987. During 1988, the Borough and District paid $212,057 toward their obligation for PERS leaving a balance due of $18,282 at June 30, 1988. 6. FIXED ASSETS A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1988 follows: The following is a summary of enterprise fund -type fixed assets at June 30, 1988: Unclassified utility plant in service $17,874,571 Hospital building and fixed equipment 4,012,091 Major movable equipment 1,634,372 Less: accumulated depreciation (3,061,592) Construction work in progress 87,897 Net fixed assets $20,547,339 -30- Balance Balance J uly 1. 1987 Additions Deductions June 30, 1988 Land $ 7,469,315 $ - $ - $ 7,469,315 Buildings 51,973,292 131,000 1,290,623 50,813,669 Improvements other than buildings 3,863,474 111,900 3,133,235 842,139 Machinery and equipment 2,567,349 399,694 65,194 2,901,849 Construction work in progress 681,445 9,302,946 221,234 9,763,157 $66,554,875 $9,945.540 $4,710,286 $71,790.129 The following is a summary of enterprise fund -type fixed assets at June 30, 1988: Unclassified utility plant in service $17,874,571 Hospital building and fixed equipment 4,012,091 Major movable equipment 1,634,372 Less: accumulated depreciation (3,061,592) Construction work in progress 87,897 Net fixed assets $20,547,339 -30- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 7. DEMAND BONDS Long -Term Debt Included in long -term debt is $8,000,000 of general obligation demand bonds maturing serially through June 1, 1996 backed by the full faith, credit, and taxing power of the Borough. The bonds were issued pursuant to an ordinance adopted by the Borough Assembly on February 6, 1986. The proceeds of the bonds were used to (a) provide funds for certain school improvements and (b) pay costs incurred to issue the bonds. The redemption schedule for these bonds is included in the bond redemption schedule in Note 9. The bonds are subject to purchase on the demand of the holder at a price equal to principal plus accrued interest on seven days' notice and delivery to the Borough's remarketing agent, John Nuveen and Co. The remarketing agent is authorized to use its best efforts to sell the repurchased bonds at a price of not less than the principal amount plus accrued interest. Under an irrevocable letter of credit issued by Barclays Bank PLC, the trustee is entitled to draw an amount sufficient to pay the purchase price of bonds delivered to it. The letter of credit is valid through June 11, 1991 and carries a variable interest rate which increases over time from the institution's prime lending rate to prime plus 1 -1/2%. If the remarketing agent is unable to resell any bonds that are "put" within the notice period then the Borough has 365 days to repay the bank. The Borough is required to pay to Barclays Bank PLC an annual commitment fee for the letter of credit of 3/4 of 1 percent per annum of the outstanding principal amount of the bonds, plus 65 days of interest at an interest rate of 15 percent. The Borough has also paid a letter of credit fee of $25,000 to Barclays Bank PLC. In addition, the remarketing agent receives an annual fee of one - eighth of 1 percent of the outstanding principal amount of the bonds. Fund Liability Included as a fund liability of the School Bond Improvements Capital Project Fund is $2,750,000 of general obligation demand bonds maturing serially through July 1, 1989 backed by the full faith, credit, and taxing power of the Borough. The bonds were issued pursuant to an ordinance adopted by the Borough Assembly on April 14, 1984. The proceeds of the bonds were used to provide funds for certain school improvements. The remaining bonds of this issue are to be redeemed at $550,000 quarterly starting with the payment due July 1, 1988. -31- i 1 1 u C KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 7. DEMAND BONDS (Continued) Fund Liability (Continued) The bonds are subject to purchase on the demand of the holder at a price equal to principal plus accrued interest on seven days' notice and delivery to the trustee. The sales agent, John Nuveen and Co., is authorized to use its best efforts to sell the repurchased bonds at par plus accrued interest. Under an irrevocable letter of credit issued by Rainier National Bank, the trustee is entitled to draw an amount sufficient to pay the purchase price of bonds delivered to it. The letter of credit is valid through July 15, 1989 and carries a variable interest rate over time from 75 percent to 100 percent of the bank's prime rate. If the sales agent is unable to resell any bonds that are "put" within the notice period then the Borough is required to repay the bank the same day as the draw on the letter of credit. The Borough is required to pay to Rainier National Bank an annual facility fee for the letter of credit of from 3/4 of one percent to one percent of the outstanding principal amount of the bonds, plus 125 days of interest at an interest rate of 20 %. In addition, the sales agent receives an annual fee of one - fourth of one percent of the outstanding principal amount of the bonds. 8. DEMAND BOND RECLASSIFICATION The 1984B general obligation school improvement bonds have been reclassified from long -term debt to a fund liability of the School Improvement Capital Project Fund since the bonds are due on demand and there is currently no long -term take out agreement. The effect of this reclassification on 1987 amounts is as follows: Previously Reported Adjustment As Restated ' Amount to be provided to service long -term debt $19,010,291 $(4,800,000) $14,210,291 Fund balance designated for subsequent year expenditures 17,439,288 (4,800,000) 12,639,288 Capital Projects Funds: Beginning fund balance 12,316,358 (6,650,000) 5,666,358 Other financing sources - 1,850,000 1,850,000 Ending fund balance 11,407,604 (4,800,000) 6,607,604 General obligation demand bonds payable - 4,800,000 4,800,000 -32- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 9. LONG —TERM DEBT The following is a summary of general obligation debt for the year ended June 30, 1988: Interest Payments General Issue Maturity Obligation Bonds Rates Dates Date Date Dates Amount Serial bonds: Schools 5% 9/1 -3/1 Schools refunding 7.25% 8/1 -2/1 Schools 7.3 -9% 8/1 -2/1 1/1/67 9/1/87 8/1/74 8/1/92 8/1/88 8/1/89 8/1/90 8/1/91 8/1/92 8/1/80 8/1/2000 8/1/88 8/1/89 8/1/90 8/1/91 8/1/92 8/1/93 8/1/94 8/1/95 8/1/96 8/1/97 8/1/98 8/1/99 8/1/00 Schools, Multi— projects Variable Quarterly 5/28/86 6/1/96 9/1/88 to 6/1/96 $ 250,000 270,000 290,000 310,000 330,000 465,000 500,000 540,000 585,000 630,000 680,000 735,000 795,000 860,000 925,000 1,000,000 1,080,000 1,165,000 250,000 X 32 8.000. $19.410.000 -33- Authorized Prior Years Current Year Balance at Balance at Year Amount Issued Retired July 1. 1987 Issued Retired June 30. 1988 1965 $ 750,000 $ 750,000 $ 700,000 $ 50,000 1974 1,900,000 1,900,000 215,000 1,685,000 1979 12,100,000 12,100,000 1,710,000 10,390,000 1986 9,930,000 9,930,000 930,000 9,000,000 $24.680.000 $24.680.000 $ 3.555.000 $21.125.000 $ 50,000 $ — 235,000 1,450,000 430,000 9,960,000 1,000,000 8,000,000 $1.715.000 $19.410.000 -34- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 9. LONG -TERM DEBT (Continued) United States En vironmental Protection Agency Note Payable The $375,000 Asbestos School Hazard Abatement interest free loan is due in semi - annual installments of a minimum amount of $10,417 commencing on June 30, 1987 and continuing until the principal is fully paid on or before June 24, 2005. A summary of long -term debt as of and for the year ended June 30, 1988 follows: Balance at Balance at July 1, 1987 Additions Retirements June 30, 1988 General obligation bonds $21,125,000 $ - $1,715,000 $19,410,000 EPA loan payable 364,583 - 20,834 343,749 Accrued annual leave 144,215 133,423 144,215 133,423 $21.633.798 $133,423 $1.880.049 $19.887.172 The annual requirements to amortize all general obligation debt and the EPA loan payable outstanding as of June 30, 1988, including interest payments of $8,882,857 on the general obligation debt, are as follows: Annual Requirements to Amortize long -term debt Year Ending General June 30 Obligation EPA Loan 1989 $ 3,190,691 $ 20,834 1990 3,103,414 20,834 1991 3,020,904 20,834 1992 2,943,093 20,834 1993 2,860,072 20,834 1994 2,438,802 20,834 1995 2,359,481 20,834 1996 2,279,200 20,834 1997 1,228,000 20,834 1998 1,221,600 20,834 1999 1,219,600 20,834 2000 1,216,400 20,834 2001 1,211,600 20,834 2002 -2005 - 72,907 $28.292.857 $343,74 -35- KODIAK ISLAND BOROUGH ' NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 ' 9. LONG -TERM DEBT (Continued) The amount of $7,111,644 is available in the Debt Service Funds to service all general obligation the $2,750,000 in general obligation g ation bonds (including demand bonds reported in the capital project funds). ' There are a number of limitations and restrictions contained in the various bond indentures. The Borough is in compliance with all significant limita- tions and restrictions. Refunding Bonds ' During 1974, the Borough defeased existing school 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 requirements 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 obligations of the defeased ' bonds at June 30, 1988 are summarized as follows: Bond Principal Investments Outstanding Held in Trust t Series 1974 School bonds, 5.590 to 5.7%, due in installments to 1992 $1,535,000 $1,545,510 *Central Bank of Denver as Trustee ' 10. CAPITAL PROJECTS FUNDS CONSTRUCTION COMMITMENTS A summary of Capital Projects Funds construction commitments at June 30, 1988 t follows: Various Borough Projects $ 183,090 School Bond Improvements Fund 4,652,504 ' School Equipment and Furnishings Fund 97,329 State Capital Grants Fund 252,792 1 $5,185,715 Resources are presently available or committed to finance construction commitments at June 30, 1988 for all funds except the School Bond ' Improvements Fund. The additional resources required in this fund will be available during fiscal year 1989. -36- 1 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS , (Continued) June 30, 1988 ' 11. ENTERPRISE FUND SEGMENT INFORMATION I The Borough owns and operates a Water and Sewer Utility Enterprise Fund and a Sanitary Landfill Fund. The Kodiak Island Borough Hospital is included in the Borough's financial statements as a component unit. The water and sewer utility and landfill have 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, 1988 for the water and sewer utility and landfill and as of and for the year ended December 31, 1987 for the Hospital are as follows: ' Sanitary Water and Landfill Sewer Utility Hospital Total $ 7,062,415 ' Operating revenues $ 449,488 $ 434,727 $6,178,200 Depreciation 56,092 303,559 266,618 626,269 Operating income (loss) (287,447) (227,083) 720,385 205,855 Operating grants ' entitlements - - 343,101 343,101 Operating transfers in (out) 290,000 (105,000) - 185,000 ' Net earnings (loss) 2,553 (309,150) 1,063,486 756,889 Contributions in aid of construction: Additions 2,412,453 1,812,564 43,315 4,268,332 ' Amortization 54,974 303,528 - 358,502 Property, plant and equipment additions 2,434,813 1,812,564 134,878 4,382,255 ' Net working capital 46,337 257,070 1,872,068 2,175,475 Total assets 2,427,839 15,554,728 8,250,303 26,232,870 Total equity 2,425,058 15,476,976 7,964,471 25,866,505 12. DEFERRED COMPENSATION PLAN The Kodiak Island Borough has a deferred compensation plan created in accor- dance with Internal Revenue Code Section 457. The Plan is available to all permanent Borough employees. The deferred compensation is not available to ' employees until termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, t property or rights are (until paid or made available to the employee or other beneficiary) solely the property and the right of the Borough (without being restricted to the provisions of benefits under the plan), subject only to the ' claims of the Borough's general creditors. Participants' rights under the plan are equal to those of general creditors of the Borough in an amount equal to the fair market value of the deferred account for each participant. -37- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 12. DEFERRED COMPENSATION PLAN -- Continued The funds are managed by the International City Managers Association Retirement Corporation. The Borough has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Borough believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 13. INDIVIDUAL FUND DISCLOSURES Interfund Receivables and Payables A summary of interfund receivables and payables at June 30, 1988 is as follows: Receivable Payable Special Revenue Funds - Education $243,481 Capital Projects Funds - School Equipment and Furnishings $243,481 Fund Deficits The following road service district funds have fund deficits at June 30, 1988: Women's Bay $15,076 Bayview $ 907 These deficits will be funded through increased fiscal year 1989 property tax levies. Excess of Expenditures Over Appropriations The Bayview Road Service District Fund expenditures exceeded appropriations by $596. The following capital projects had expenditures in excess of appropriations in the indicated amounts. 47 -263 Solid Waste Facility $152,618 47 -209 Undesignated Projects 140,273 14. OTHER FINANCING SOURCES Insurance Proceeds In November 1987, the Port Lions school was extensively damaged by fire. Insurance proceeds are estimated at $1,746,000 of which $1,414,685 has been received in the current year and recorded as an other financing source in the School Bond Improvement Capital Project Fund. -38- KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) June 30, 1988 14. OTHER FINANCING SOURCES (Continued) Asbestos Settlement During 1988, the Borough and School District agreed to a settlement of their asbestos -in- buildings litigation with W.R. Grace & Co. Under terms of the settlement, the Borough will receive an estimated $1,268,000 (net of attorney fees) of which $634,061 has been received in the current year and recorded as an other financing source in the School Bond Improvement Capital Project Fund. 15. CONTINGENCIES Litigation The Borough, in the normal course of its activities, is involved in various claims and pending litigation. In the opinion of management, the disposition of the claims and litigation is not presently expected to have a material adverse effect on the Borough's financial statements. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by the grantor agencies. Any disallowed claims, including amounts already collected, would become a liability of the General or other applicable funds. In management's opinion, disallowances, if any, will be immaterial. -39- F� 1 F� t 1 r F, 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 intergovernmental revenues. Primary expenditures in the General Fund are for general governmental and public ' services. KODIAK ISLAND BOROUGH GENERAL FUND BALANCE SHEET June 30, 1988 with comparative figures for 1987 ASSETS Schedule 1 1988 1987 Temporary investments $5,000,961 $4,502,444 Other cash 3, 702 1,70 Total cash and investments 5,004,663 4,504,144 Receivables: State of Alaska 968,914 988,582 Property taxes: Areawide tax role due in subsequent year 2,116,904 1,990,200 Delinquent taxes 25,610 49,235 Allowance for uncollectible delinquent taxes (9.13 -3) (11,200 Net property taxes 2,133,381 2,028,235 Accrued interest receivable 91,246 78,492 Other 20,249 23,240 Net receivables 3,213,790 3,118,549 Prepaids 49,643 66,142 $8,268,096 $7,688,835 LIABILITIES AND FUND BALANCE Liabilities: Advance from central treasury $3,787,908 $3,157,151 Accounts payable 28,063 27,440 Payroll taxes and employee benefits 78,421 36,982 Other accrued liabilities 7,934 1,315 Deferred revenue - areawide tax role due in subsequent year 2,11 1 .2.20 ,2 00 Total liabilities 6,019,230 5,213,088 Fund balance: Reserved: Encumbrances 26,819 40,376 Unreserved: Designated: Working capital 1,250,000 1,250,000 Subsequent year expenditures 972,0 1 Total fund balance 2,248,866 2,475,747 M. M 1•. -40- KODIAK ISLAND BOROUGH GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year ended June 30, 1988 with comparative figures for 1987 Revenues: Property taxes: Real Personal Motor vehicle Penalty and interest Payment in lieu of taxes Total property taxes Intergovernmental: State sources: State shared revenue Municipal assistance Raw fish tax Electric co -op tax Miscellaneous Total State sources Federal sources Total inter- governmental Licenses, permits, fees and other local revenues: Buildings and trailers Subdivision and zoning fees Sale of copies Miscellaneous Total licenses, permits, fees and other local sources Continued Schedule 2 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $1,642,000 $1,587,212 222,950 222,486 160,150 157,141 41,400 44,818 475,300 479,408 2,541,800 2,491,065 $(54,788) $ 1,351,870 (464) 177,327 (3,009) 158,023 3,418 42,839 4,108 458,691 (50,735 2,188,750 881,790 874,093 527,690 527,690 690,000 875,085 5,790 4,484 8,790 8,65 2,114,060 2,290,007 720 1.620 2,114,780 2,291,627 22,000 14,989 5,100 9,986 2,500 7,977 93,130 65,007 122,730 97,959 (7,697) 612,039 4,886 621,255 185,085 871,703 (1,306) 5,790 (135 37 8 175,947 2,111,165 900 3,118 176,847 2,114,283 (7,011) 21,984 4,886 11,268 5,477 3,364 (28,123 101,535 (24,771 138,151 -41- Schedule 2 (Continue , KODIAK ISLAND BOROUGH GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual Investments and property: Interest income $ 200,000 $ 327,316 $127,316 $ 419,172 Gain on exchange 26,475 26,486 11 29,746 Lease rentals on land and buildings 2,150 2,000 (150) 2,600 Computer rental 100 100 99,330 Total investments and property 228,625 355,902 127,277 550,848 Total revenues 5,007,935 5,236,553 228,618 4 ,992,032 Expenditures: Borough Assembly 49,100 39,675 9,425 46,584 Mayor's department 140,900 140,529 371 122,886 Clerk's department 147,350 152,543 (5,193) 154,011 Finance department 223,940 228,706 (4,766) 204,855 Legal department 76,550 79,491 (2,941) 62,876 Assessment department 174,070 159,481 14,589 160,839 Community development department 217,300 212,139 5,161 218,570 Engineering department 67,880 64,787 3,093 134,126 Health and sanitation 466,000 465,954 46 499,930 Data services 176,960 178,519 (1,559) 277,410 Resource management 52,680 52,430 250 53,324 General administration 432,330 432,211 119 442,421 Building inspector 80,000 82,806 (2,806) 64,629 Emergency preparedness 105,000 80,903 24,097 21,656 Facilities department 11,270 26,656 (15,386) 50,071 Community and Regional Affairs Liaison 15,790 5,166 10,624 4,613 Education support 172,500 177,405 (4,905) 154,330 Economic development 50,000 28,668 21,33 70, 637 Total expenditures 2,659,620 2,608,069 51,551 2,743,768 Excess of revenues over expenditures 2,348,315 2,628,484 280,_.169 2,248,264 Continued -42- t Schedule 2 (Continued KODIAK ISLAND BOROUGH GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Operating transfers in: Special Revenue - land sales Capital Projects - Other Debt Service - other Total operating transfers from other funds Operating transfers out: Special Revenue: Mental Health Center Education Buildings and grounds Debt Service: School bonds Other Sanitary Landfill Total operating transfers to other funds Net operating trans- fers in (out) Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Residual equity transfer Fund balance at end of year Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 52,680 $ 52,680 45,291 16,664 $ - $ 52,300 45,291 4,790 16,664 - 52,680 114,635 80,000 80,000 2,000,000 2,000,000 300,000 300,000 300,000 300,000 290,000 290,000 2,970,000 2,970,000 61,955 57,090 - 80,000 - 1,746,800 - 163,100 - 383,220 - 7,053 2,380,173 (2,917,320 (2,855,365 61,955 (2,323,083 (569,005) (226,881) 342,124 2,000,420 2,475,747 475,327 $1,431,415 $2,248,866 $817, 451 (74,819) 2,532,100 18,466 $ 2,475,747 -43- KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL Year ended June 30, 1988 with comparative figures for 1987 Expenditures: Borough Assembly: Assembly compensation Retirement contribution Telephone and telegraph Travel and per diem - Assembly Insurance and bonding Publications and dues Miscellaneous Consolidation committee Honorariums /amenities Food /business lunch Total Borough Assembly Continued Schedule 3 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 6,300 $ 3,900 $ 2,400 $ 8,400 400 5 395 301 - 4 (4) 28 4,000 5,976 (1,976) 8,512 15,000 14,277 723 14,278 7,000 11,129 (4,129) 10,170 400 696 (296) 865 14,000 1,563 12,437 - 1,000 1,117 (117) 3,104 1,000 1,008 (8 926 49,100 39,675 9,425 46,584 -44- Schedule 3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Mayor's department: Borough mayor salary Secretary salary Unemployment tax Social security tax Group insurance Workers' compensation Termination reserve Retirement contribution Continuing education Office supplies Telephone and telegraph Travel and per diem Repairs and maintenance Printing and binding Publications and dues Boards and committees Total mayor's department Continued 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 60,000 $ 60,019 33,490 32,101 280 72 5,520 6,228 5,060 5,923 810 854 6,500 1,804 19,740 19,497 600 1,371 1,500 2,196 2,400 1,874 200 92 4,000 6,491 800 1,907 100 140,900 140.529 $ (19) 1,389 208 (708) (863) (44) 4,696 243 (771) (696) 526 108 (2,491) (1,107) (100 371 $ 60,404 33,887 292 5,356 5,051 801 3,967 40 504 1,663 3,100 109 5,157 1,675 880 -45- Schedule 3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Clerk's department: Clerk salary Deputy clerk salary Unemployment tax Social security tax Group insurance Workers' compensation Termination reserve Retirement contribution Continuing education Office supplies Telephone and telegraph Advertising and public hearing Travel and per diem Postage Election - local Repairs and maintenance Printing and binding Publications and dues Machinery and equipment Equipment lease /purchase Contracted services Total clerk's department Continued Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 45,000 $ 45,856 $ (856) $ 45,290 30,060 31,027 (967) 28,276 560 91 469 586 5,110 5,614 (504) 5,202 4,960 6,215 (1,255) 5,051 600 639 (39) 614 550 1,340 (790) - 6,670 6,802 (132) 3,119 4,875 4,052 823 3,760 1,500 1,517 (17) 4,242 1,615 1,721 (106) 1,145 15,000 15,164 (164) 15,211 750 1,598 (848) 1,126 8,550 7,874 676 17,604 10,100 10,017 83 11,874 950 1,011 (61) 271 3,000 4,715 (1,715) 6,595 500 826 (326) 688 5,000 4,765 235 93 2,000 1,699 301 1,764 - - 1,500 147,350 152,543 (5,193 154,011 -46- Schedule 3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Finance department: Finance director salary Cashier salary Secretary salary Accountant salary Accounting clerk I salary Unemployment tax Social security tax Group insurance Workers' compensation Termination reserve Retirement contribution Continuing education Office supplies Telephone and telegraph Advertising and public hearings Travel and per diem Insurance and bonding Repairs and maintenance Printing and binding Publications and dues Machinery and equipment Furniture and fixtures Personnel recruitment Contracted services Costs allocated to projects Total finance department Continued 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 54,790 $ 57,492 23,740 22,672 22,140 21,413 45,450 44,566 27,510 25,381 1,400 1,450 11,510 11,828 11,290 9,933 1,440 1,464 700 5,481 15,940 15,707 2,660 2,009 2,000 3,487 2,300 2,621 - 108 1,500 436 6,840 6,837 250 242 11,000 11,380 1,400 1,465 4,500 4,414 750 230 $ (2,702) 1,068 727 884 $ 53,797 29,429 45,347 - 340 (25.170 (22.250 223.940 228.706 2,129 (50) (318) 1,357 (24) (4,781) 233 651 (1,487) (321) (108) 1,064 3 8 (380) (65) 86 520 (340) (2,920 (4,766 29,898 1,272 10,516 6,686 1,347 6,402 7,465 2,792 3,071 2,003 5,925 114 3,762 1,136 1,477 60 (7,644 204,855 -47- Schedule 3 (Continued I KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Continued -48- 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual Legal department: Court costs and litigation allowance $ 6,000 $ 2,163 $ 3,837 $ 4,412 Telephone and telegraph 120 171 (51) 73 Advertising and public hearings 17,430 15,123 2,307 16,431 ' Professional services 50,000 59,595 (9,595) 39,090 Miscellaneous 100 261 (161) 156 Fees 800 551 249 400 , Printing and binding 100 600 (500) 95 Filing recording fees 2,000 1.027 973 2.219 I Total legal department 76,550 79.491 (2.941 62,876 Assessment department: Appraiser /assessor salary 49,070 50,306 (1,236) 42,750 Assessing clerk II salary 29,790 30,090 (300) 24,106 ' Assessing clerk I salary 170 6,168 (5,998) 14,049 j Appraiser I salary 37,860 24,275 13,585 35,586 Unemployment tax 980 121 859 1,018 Social security tax 7,910 7,808 102 8,276 Group insurance 4,730 4,234 496 5,708 Workers' compensation 3,490 2,386 1,104 2,861 Termination reserve 1,340 (311) 1,651 - Retirement contribution 9,780 9,901 (121) 4,652 Continuing education 1,200 975 225 2,466 Office supplies 2,420 2,156 264 565 Telephone and telegraph 2,150 2,475 (325) 2,503 ! Advertising and public hearings 500 344 156 142 Travel and per diem 2,500 2,463 37 4,498 Repairs and maintenance 1,500 1,103 397 168 Printing and binding 4,200 2,743 1,457 3,619 Publications and dues 1,500 1,323 177 2,061 ' Furniture and fixtures 5,236 Maps Personnel recruitment 10,000 780 9,303 777 697 3 - 575 Contracted services 1,400 400 1,000 - E Filing recording fees 800 441 359 Total assessment department 174.070 159,481 14.589 160,839 ' j Continued -48- � I KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 i 1 Schedule 3 (Continued Community development department: Planning director salary Zoning officer salary Assistant planner salary Secretary salary Unemployment tax Social security tax Group insurance Workers' compensation Termination reserve Retirement contribution Continuing education Office supplies Telephone and telegraph Advertising and public hearings Travel and per diem Repairs and maintenance Contracted services Printing and binding Publications and dues Machinery and equipment Furniture and fixtures Boards and committees Costs allocated to projects Total community development department Continued 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 53,870 $ 55,284 $ (1,414) $ 53,205 32,790 33,038 (248) 31,698 46,200 38,336 7,864 40,156 29,190 26,671 2,519 25,626 1,120 176 944 1,173 10,460 10,656 (196) 10,122 9,640 9,631 9 6,395 3,900 3,761 139 3,774 2,270 (7,586) 9,856 - 14,370 13,800 570 6,436 - 1,373 (1,373) 2,507 1,000 2,087 (1,087) 2,472 1,500 2,489 (989) 2,161 350 865 (515) 3,123 500 595 (95) 1,608 - 544 (544) 57 5,860 18,405 (12,545) - 8,000 5,186 2,814 9,758 1,500 1,959 (459) 1,972 14,640 15,194 (554) 8,711 450 1,437 (987) 33 6,300 6,610 (310) 8,410 (26,610 (28,372 1.762 (827 217,300 212,139 5,161 218,570 -49- Schedule 3 (Continued j KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Engineering department: Engineer salary Construction inspector salary Draftsman salary Secretary salary Unemployment tax Social security tax Group insurance Workers' compensation Termination reserve Retirement contribution Continuing education Office supplies Telephone and telegraph Advertising and public hearings Travel and per diem Repairs and maintenance Printing and binding Publications and dues Machinery and equipment Operating supplies Contracted services Costs allocated to projects Total engineering department Continued 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 61,910 $ 61,967 $ (57) 51,730 50,324 1,406 - 2,690 (2,690) 27,830 27,332 498 670 611 59 8,260 9,010 (750) 6,240 7,864 (1,624) 4,240 3,492 748 - 2,586 (2,586) 13,680 13,028 652 3,820 6,829 (3,009) 1,500 1,208 292 - 730 (730) - 55 (55) 600 762 (162) 3,100 2,119 981 300 447 (147) 5,000 5,091 (91) - 29 (29) (121,000 (131,387 67,880 64,787 59,372 52,724 35,149 25,133 1,140 10,367 8,383 4,277 7,187 1,858 2,020 1,465 287 1,803 467 2,095 2,457 24,937 10,387 (106,995 3,093 134,126 I E u -50- I Schedule 3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Health and sanitation: Council on Alcoholism Hospital support Ambulance service Village health services Chiniak Community Association Kodiak Area Native Association Women's Resource Center Kodiak Baptist Mission Contribution Health Center support Contracted services Animal control Total health and sanitation Continued 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 36,800 $ 36,800 $ - 175,000 175,000 - 50,000 50,000 - 33,600 33,600 - 11,200 35,400 60,000 2,000 32,000 . . 11,200 35,400 60,000 1,954 32,000 465,954 46 46 $ 38,500 218,750 50,000 42,000 15,000 14,000 19,250 52,500 300 24,565 25,065 -51- KODIAK ISLAND BOROUGH GENERAL FUND Schedule 3 (Continued SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Data services: Data processing manager salary Programmer /analyst salary Data technician I salary Other staff wages Unemployment tax Social security tax Group insurance Workers' compensation Termination reserve Retirement contribution Professional education Office supplies Telephone and telegraph Travel and per diem Relocation expenses Professional services Repairs and maintenance Printing and binding Publications and dues Furniture and fixtures Machinery and equipment Equipment lease /purchase Operating supplies Contracted services Costs allocated to projects Total data services 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 45,580 $ 45,601 $ (21) $ 46,262 44,830 54,749 (9,919) 47,532 31,350 29,540 1,810 28,697 - - - 4,676 840 93 747 953 8,500 9,379 (879) 8,883 7,950 10,717 (2,767) 8,663 1,010 1,078 (68) 1,048 2,540 2,658 (118) - 11,170 11,950 (780) 5,213 4,130 4,477 (347) 6,347 200 189 11 762 2,000 1,277 723 1,844 500 1,620 (1,120) 58 785 (785) - - 3,333 (3,333) 8,200 25,000 23,504 1,496 23,455 - 216 (216) 288 800 703 97 960 - - - 526 51,450 47,486 3,964 62,291 9,110 9,831 (721) 10,596 9 10,999 (1 13,288 11,000 9,157 1,843 - (90,000 (100.823 176.960 178,519 10.823 (3.132 (1.559 211,410 Continued -52- f Schedule 3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Continued -53- 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual Resource management: Manager salary $ 38,330 $ 38,292 $ 38 $ 38,514 Social security tax 2,740 2,796 (56) 2,677 Group insurance 2,890 3,554 (664) 2,888 Retirement contribution 3,520 3,504 16 1,599 Unemployment tax 280 39 241 292 Workers' compensation 1,090 1,082 8 1,063 Office supplies 300 57 243 300 Telephone and telegraph 1,500 1,535 (35) 1,576 Travel and per diem 500 508 (8) 404 Continuing education - 175 (175) 1,098 Printing and binding 500 492 8 1,420 Publications and dues 250 333 (83) 301 Termination reserve 780 - 780 - Advertising /hearing - 23 (23) - Repairs and maintenance - 40 (40) - Machinery and equipment - - - 1.192 Total resource management 52,680 52,430 250 53.324 Continued -53- Schedule -T (Continued I KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 General administration: Secretary salary Switchboard operator salary Unemployment tax Social security tax Group insurance Workers' compensation Termination reserve Retirement contribution Continuing education Office supplies Rent Street assessments Street signs and house numbers Printing and binding Automobile repairs and maintenance Insurance and bonding Repairs and maintenance Audits and consultants Capital outlay - machinery and equipment Contributions Miscellaneous Personnel recruitment Bad debt expense Food /business lunch Telephone and telegraph Advertising /hearing Out of pocket expense Contracted services Total general administration Continued 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 24,270 $ 25,831 23,100 24,495 380 138 3,390 3,691 1,900 2,360 380 418 300 141 5,000 4,468 1,640 1,640 750 1,009 110,020 110,020 600 800 900 930 5,000 90,000 100 54,000 54,000 600 900 200 25,000 432.330 4,530 90,000 955 38,882 4,940 54,000 173 165 407 2,663 233 27,238 31.984 432,211 $ (1,561) (1,395) 242 (301) (460) (38) 159 532 (259) (300) (130) 470 (855) 15,118 (4,940) (173) (165) 193 (1,763) (33) (2,238) (1,984 119 $ 25,943 18,293 627 3,163 1,893 367 (7,053) 2,078 5,279 816 110,020 18,858 950 773 5,919 87,181 57 52,349 1,049 82,200 885 53 792 1,109 24,700 4,120 442,421 -54- Schedule 3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Building inspector's department: Building official salary Unemployment tax Social security tax Group insurance Workers' compensation Retirement contribution Telephone and telegraph Travel and per diem Printing and binding Contracted services Continuing education Publications and dues Termination reserve Office supplies Costs allocated to projects Total building inspector's department Emergency preparedness: Telephone and telegraph Electric Repairs and maintenance Travel and per diem Machinery and equipment Total emergency preparedness Continued 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 55,210 $ 55,885 $ (675) $ 52,302 280 - 280 293 3,130 2,738 392 2,990 2,170 2,155 15 2,163 1,570 1,638 (68) 1,402 24,690 22,712 1,978 2,108 500 703 (203) 959 500 88 412 1,382 100 - 100 51 4,000 1,943 2,057 3,388 - 17 (17) 1,210 1,200 70 1,130 1,977 16,550 777 15,773 - 100 - 100 6 (30,000 (5.920 (24.080 (5,602 :1 111 : 1 .900010190r: My 1,000 - 233 2,500 - 1,500 - 100,000 80,670 105.000 80.903 1,000 (233) 2,500 1,500 19,330 24,997 64,629 6,500 15,156 21,656 -55- Schedule 3 (Con tinued) KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Facilities coordinator department: Managerial salaries Construction inspectors salaries Secretary salary Unemployment tax Social security tax Group insurance Workers' compensation Termination reserve Retirement contribution Office supplies Telephone and telegraph Advertising and public hearing Travel and per diem Repairs and maintenance Personnel recruitment Printing and binding Publications and dues Continuing education Professional services Furniture and fixtures Contracted services Costs allocated to projects Total facilities coordinator department Continued (140,000 (145.756 5.756 11,270 26.656 (15.386 -56- r i i { } F E 1987 Actual $ 50,542 g 44,601 28,982 1,160 8,581 3,554 2,275 5,020 2,363 4,738 3,873 , 1,466 78 237 3,650 467 318 1,703 1,256 14,572 (129,365 50.07 1 1 i 1 1988 Variance Favorable Budget Actual ( Unfavorable ) $ 45,680 $ 45,696 $ (16) 42,280 51,649 (9,369) 23,850 30,768 (6,918) 840 143 697 7,860 9,386 (1,526) 4,840 4,369 471 2,700 3,044 (344) 1,810 (869) 2,679 10,260 11,140 (880) 2,000 3,247 (1,247) 4,000 5,744 (1,744) 500 - 500 1,802 (1,802) 250 787 (537) 2,500 3,503 (1,003) 400 467 (67) - 850 (850) 1,500 686 814 (140,000 (145.756 5.756 11,270 26.656 (15.386 -56- r i i { } F E 1987 Actual $ 50,542 g 44,601 28,982 1,160 8,581 3,554 2,275 5,020 2,363 4,738 3,873 , 1,466 78 237 3,650 467 318 1,703 1,256 14,572 (129,365 50.07 1 1 i 1 Schedule 3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Community and regional affairs liaison: Temporary staff salary Telephone and telegraph Printing and binding Postage Rent Total community and regional affairs liaison Education support: 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 4,010 $ - $ 4,010 $ - 3,000 4,729 (1,729) 4,077 500 406 94 289 300 31 269 247 7,980 - 7,980 - 15,790 5,166 10,624 4,613 Library 58,000 58,000 - 60,000 Community college 35,000 35,000 - 32,000 Village libraries 23,000 22,990 10 24,500 Public radio 7,000 7,000 - 8,000 Head Start 3,000 3,000 - - Kodiak Art Council 12,000 12,000 - - Professional services 9,500 8,090 1,410 15,590 Out of pocket expense 16,000 22,325 (6,325) 9,240 Historical Society 9.000 9 - 5,000 Total education support 172,500 177,405 (4.905 154,330 Continued -57- Schedule 3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 -58- 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual Economic development: Manager salary $ - $ - $ - $ 41,760 Social security tax - - - 2,986 Group insurance - - - 1,687 Retirement contribution - - - 1,783 Unemployment tax - - - 448 Workers' compensation - - - 347 Office supplies 500 550 (50) 131 Telephone and telegraph - - - 893 Contribution 2,200 2,200 - - Travel and per diem 500 408 92 3,902 Printing and binding - - - 2,774 Publications and dues - - - 505 Advertising /hearing - - - 677 Contracted services 46,800 25,510 21,290 7,306 Machinery and equipment - - - 5,438 Total economic development 50,000 28,668 21,332 70,637 Total expenditures 2,659,620 2,608,069 51,551 2,743,768 Operating transfers out: Special Revenue Funds: Mental Health Center 80,000 80,000 - 80,000 Education 2,000,000 2,000,000 - 1,746,800 Buildings and grounds 300,000 300,000 - 163,100 Debt Service Funds: School bonds 300,000 300,000 - 390,273 Sanitary landfill 290.000 290,000 - - Total operating transfers out 2,970.000 2,970,000 - 2.380,173 $5.629,620 $5.578.069 $ 51.551 $5.123.941 -58- SPECIAL REVENUE FUNDS These funds are used to account for revenues from specific taxes or other ear - marked 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 comprehensive plans, coastal sensitivity analysis, outer continental shelf impact analysis, ordinance update and planning and zoning. 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. BUILDING 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 not - for - profit community organizations. ASSETS Equity in central treasury Temporary investments Other cash balances Receivables: State of Alaska Land sales contract, due within one year Accrued interest Other Allowance for doubtful receivables Inventories Prepaids Land sales contracts receivable, due after one year LIABILITIES AND FUND BALANCES (DEFICITS Liabilities: Advance from central treasury Accounts payable Salaries payable Payroll taxes accrued and withheld Employee benefits accrued and withheld Customer deposits Deferred and unrealized revenues Due to other funds Total liabilities Fund balances (deficits): Reserved for encumbrances Reserved for fuel inventory Unreserved: Designated for subsequent year expenditures Undesignated Total fund balances (deficits) KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1988 with comparative totals for 1987 1 1 1 59 389 184 1,263 - 1,003 - 300 2,235,912 - - 2.235.971 2.655 484 50 - - 2,765.329 303.015 17.044 13.096 2,765.379 303.015 17.044 13.096 $5,00 1,350 r 7 17 $13.096 -59- $ � $ 15,076 _ = - — 15076 ) $ 20,811 i j i i Fire and Road Service Districts Fire Women's Monashka Road District Women's Land Sales Area 1 Say Say One Bay $ 699,697 $ 5,204 $17,528 $13,096 $20,811 $ - 1,965,244 300,000 - - - _ 257,200 - 118,749 466 (18,252) 1.978 712 - $5.001.350 $305,670 $17 ,528 $13.096 $20,811 $ 59 389 184 1,263 - 1,003 - 300 2,235,912 - - 2.235.971 2.655 484 50 - - 2,765.329 303.015 17.044 13.096 2,765.379 303.015 17.044 13.096 $5,00 1,350 r 7 17 $13.096 -59- $ � $ 15,076 _ = - — 15076 ) $ 20,811 i j i i Schedule 4 Federal and State Grant Programs Federal Mental Bay View Revenue Health Road Sharing Center Energy Day Care $ - $ - $116,683 $ - $ - 100 - - 40,530 14,058 37,460 126,983 - - (39,441) - - - 6,130 - - $ S $250,985 $14,058 $37,4 $ 907 $ Buildings Totals $ - Education and Grounds 1988 1987 $2,259,772 $30,823 $3,163,614 $2,159,067 - - 2,265,244 2,068,379 14,399 - 14,499 35,220 697,637 - 789,685 488,698 - - 257,200 297,696 - - 119,215 101,787 5,859 - 132,842 169,380 - - (57,693) (55,611) 230,064 300 230,064 225,172 - - 6,130 330,913 2,468,619 1,978,712 2,090,860 $3,207,731 $30,823 $8,899,512 $7,911,561 $ 907 $ - $ - $14,058 $17,843 $ - $ - $ 47,884 $ 549,331 - - 7,120 - 19,216 259,324 2,900 289,192 128,930 - - 18,438 - - 829,099 - 848,800 779,072 - - - - - 490,244 - 490,244 510,955 - - 6,599 - - 109,304 - 116,906 104,595 - - - - - - - 300 300 - - - - - 157,407 - 2,393,319 2,468,619 - - - - 32,157 14.058 - 243,481 - 243.481 51,804 4.593.606 37,059 2.900 907 4.430.126 2.088.859 - - - - - 128,562 700 129,312 177,377 - - - - - 73,680 - 73,680 72,166 - - - - - 290,000 - 290,000 327,203 (907 - 218,828 - 401 626,630 27,223 3,976,394 2.741,209 (907 - 218,828 - 401 1,118,872 27,923 4,469,386 3,317,955 1- $- $250,985 $14,058 $37,4 $3,207,731 $30,823 $8,899,512 $7,911,561 -60- KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) Year ended June 30, 1988 with comparative totals for 1987 Revenues: Property taxes State sources Federal sources Land sale proceeds Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures: Planning and community development Health and sanitation Education support General administration Capital improvements: General Service district maintenance Total expenditures Excess (deficiency) of revenues over expenditures Operating transfers in Operating transfers out Net operating transfers Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out Fund balances (deficits) at beginning of year Adjustments to reserve for fuel inventory Fund balances (deficits) at end of year Fire and Road Service Districts Fire Road Women's Monashka District Women's Land Sales Area 1 Bay Bay One Bay $ - $126,298 $ 5,810 9,577 1,010 588,547 - _ 55,819 7,840 6,000 102,885 19,686 - 747.251 163.401 12.820 $17,831 $ 16,324 $ 11,638 4,272 10,778 18,087 10,000 22.103 27.102 39.725 3,928 - - - 119,181 22,069 4,979 7,655 - 8.907 126,836 22.069 16.014 37.665 73.775 16,014 37,665 73.775 738.344 36.565 (9.249 6.089 (10.563 (34.050 - 1,164 - - (52,680 (10,000 - (52.680 (8.836 - 685,664 27,729 (9,249) 6,089 (10,563) (34,050) 2,079,715 275,286 26,293 $2.765,379 $303,015 $17,044 7,007 31,374 18,974 $13,096 20,811 $(15.07 -61- —62— Federal and State Grant Programs Federal Mental Buildings Totals Bay View Road Revenue Sharing Health Center Energy Day Care Education and Grounds 1988 1987 $ 3,190 $ - $ - $ - $ - $ - $ - $ 181,091 $ 195,903 912 - 734,442 32,220 199,215 17,423,440 - 18,433,953 18,254,548 - - - - - 788,491 - 788,491 621,078 - - - - - - - 588,547 493,230 - - 336,166 - - 157,915 - 573,740 657,087 - - 16.959 - - - 30 2.150 441.680 475.636 4.102 - 1.087.567 32.220 199.215 18.369.846 302.150 21.007.502 20.697.482 - - - 32,220 - - - 36,148 9,579 - 63,000 1,152,995 - 199,215 - - 1,415,210 1,291,262 - 5,000 - - - 15,462,882 - 15,467,882 15,161,996 - 23,973 - - - - 525,176 690,399 807,018 - - _ _ _ _ - 12,634 45,832 3.786 - - - - - - 131.24 96. 4Z5 3.786 91,97 1.152.995 32,22 199.215 15.462.882 525.176 17.753.513 17.412.112 316 (91.973 (65.428 - - 2.906.964 (223.026 3.253.989 3.285.370 - - 80,000 - 2,109,375 300,000 2,490,539 2,243,662 - - - (7.036 - - - - (4.524.896 - (4.594,612 (6.543.770 - 300.000 72.964 (2.104.073 (4.300.108 (2.415.521 316 (91,973) 7,536 - - 491,443 76,974 1,149,916 (1,014,738) (1,223) 91,973 211,292 - 401 625,914 (49,051) 3,317,955 4,322,625 1.515 1.515 10.068 $ (907) $ 218.828 401 $ 1.118.872 27 ,923 $ 4.469.386 $ 3.317.955 —62— KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS LAND SALES STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year ended June 30, 1988 with comparative figures for 1987 Schedule 6 -63- 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual Revenues: Land sale proceeds $ 430,000 $ 588,547 $158,547 $ 493,230 Licenses, permits, fees and other local revenues: Penalty and interest 1,100 931 (169) 1,262 Permit fees 10,000 20,000 10,000 10,025 Gravel sales 5.400 34 = 888 29,488 23,529 16,500 55,819 39,319 34,816 Investment income 55,000 102,885 47,885 158,711 Total revenues 501,500 747,251 245,751 686.757 Expenditures: Planning and community development: Land management 373,820 3,928 369,892 2,433 Capital improvements: General: Survey and appraisal 75,000 4,979 70,021 9,132 Support costs - - 13.550 Total expenditures 448.820 8,907 439,913 25.115 Excess of revenues over expenditures 52,680 738,344 685,664 661,642 Operating transfers out (52. 680 (52.680 - (1.052,300 Excess (deficiency) of revenues over expenditures and operating transfers out $ - 685,664 $685.664 (390,658) Fund balance at beginning of year 2,079,715 2,470,373 Fund balance at end of year $2.765.379 $ 2.079.715 -63- 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, 1988 with comparative figures for 1987 Schedule 7 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual Revenues: Property taxes $131,500 $126,298 $(5,202) $130,998 State sources - shared revenue 8,950 9,577 627 26,746 Licenses, permits, fees and other local revenues 7,200 7,840 640 9,505 Investments and property 5,000 19,686 14,686 15.261 Total revenues 152.650 163.401 10,751 182,510 Expenditures: General administration 128,090 119,181 8,909 96,255 Capital improvements: General 28.610 7,655 20.955 16,046 Total expenditures 156,700 126,836 29,864 112,301 Less charged to federal revenue sharing - - - 5,000 Total expenditures 156,700 126,836 29.864 107,301 Excess (deficiency) of revenues over expenditures (4,050) 36,565 40,615 75,209 Operating transfers in (out) (10.000 (8,836 1.164 1,070 Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out $(14.050) 27,729 $41,779 76,279 Fund balance at beginning of year 275,286 199,007 Fund balance at end of year $303.015 $275,2 -64- KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - FIRE WOMEN'S BAY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year ended June 30, 1988 with comparative figures for 1987 Revenues: Property taxes State sources - shared revenue Licenses, permits, fees and other local revenues Total revenues Expenditures - general administration: Office supplies Telephone and telegraph Insurance and bonding Repairs and maintenance Utilities Capital outlay Other Total expenditures Less charged to federal revenue sharing Net expenditures Excess (deficiency) of revenues over expenditures Fund balance at beginning of year Fund balance at end of year Schedule 8 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Act ual $ 11,180 $ 5,810 $(5,370) $11,179 1,010 1,010 - 2,977 7,200 6,000 (1,200) 5,5 19,390 12,820 (6,570 19,656 250 - 250 88 300 243 57 437 9,000 12,704 (3,704) 14,099 1,500 870 630 882 6,500 3,736 2,764 4,036 4,600 - 4,600 7,104 7,450 4,516 2,034 4,761 29,600 22,069 7,531 31,407 - - 22,069 - 7,531 5,000 26,407 29,600 V 10,210) (9,249) $ 961 26,293 $ 17,044 (6,751) 33,044 $ 26,2 93 -65- KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD MONASHKA BAY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year ended June 30, 1988 with comparative figures for 1987 Revenues: Property taxes State sources - shared revenue Total revenues Expenditures - capital improvements - service district maintenance Excess (deficiency) of revenues over expenditures Fund balance at beginning of year Fund balance at end of year Schedule 9 21,880 16.014 $ 260 6,089 7.007 $13.096 -66- $5.829 (1,134) off-i"M MR, 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $17,880 $17,831 $ (49) $18,892 4,260 4,272 12 5,087 22,140 22,103 (37) 23,979 21,880 16.014 $ 260 6,089 7.007 $13.096 -66- $5.829 (1,134) off-i"M MR, 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, 1988 with comparative figures for 1987 Revenues: Property taxes State sources - shared revenue Total revenues Expenditures - capital improvements - service district maintenance: Salaries Repairs and maintenance Contracted services Other Total expenditures Excess (deficiency) of revenues over expenditures Fund balance at beginning of year Fund balance at end of year 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 21,680 $ 16,324 $(5,356) $ 21,670 10,780 10,778 (2 1.655 32,460 27,102 (5,358 23.325 1,000 1,512 (512) 1,133 15,480 4,099 11,381 21,663 42,000 31,191 10,809 17,810 200 863 (663 232 58.680 37,665 21,015 40,838 $(26.220 (10,563) $15.657 (17,513) 31,,174 48,887 $ 20.811 $ 31.374 -67- KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD WOMEN'S BAY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year ended June 30, 1988 with comparative figures for 1987 Revenues: Property taxes State sources - 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 Other Total expenditures Excess (deficiency) of revenues over expenditures Fund balance at beginning of year Fund balance (deficit) at end of year Schedule 11 300 490 (190) 460 300 58 242 56 82,000 73,173 8,827 28,691 900 54 846 44 83,500 73.775 9,725 29,251 $( 42,270) (34,050) $ 8,22 W.W -68- 15,695 $ 18,974 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Act ual $ 13,160 $ 11,638 $(1,522) $13,164 18,070 18,087 17 21,782 10.000 10.000 - 10,000 41,230 39.725 (1.505 44,946 300 490 (190) 460 300 58 242 56 82,000 73,173 8,827 28,691 900 54 846 44 83,500 73.775 9,725 29,251 $( 42,270) (34,050) $ 8,22 W.W -68- 15,695 $ 18,974 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD BAY VIEW STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year ended June 30, 1988 with comparative figures for 1987 Revenues: Property taxes State sources - shared revenue Expenditures - capital improve- ments - service district maintenance: Staff salaries Advertising /hearings Contracted services Other Total expenditures Excess (deficiency) of revenues over expenditures Fund balance (deficit) at beginning of year Fund balance (deficit) at end of year Schedule 12 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 3,190 $ 3,190 $ - $ - 910 912 2 4,100 4.102 2 - 197 (197) 245 - 61 (61) 68 3,190 3,461 (271) 894 - 67 (67 16 3.190 3,786 (596 1,223 $ 910 316 $ (594 (1,223) (1.223 -69- 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, 1988 with comparative figures for 1987 Revenues: Federal sources - shared revenue entitlement payments $ Investments and property _ Total revenues _ Expenditures: Health and sanitation contributions: Women's Resource Crisis Center Council on Alcoholism Small World Center Senior citizen support Health center American Red Cross Mental Health Center Respite care Education support: Kodiak Community College Head Start Program General administration: 6T4T 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual 20,000 20,000 - 18,000 18,000 - 20,000 20,000 - 2,000 2,000 3,000 3,000 5,000 5,000 Kodiak Historical Society - - Alaska Legal Services 14,000 14,000 Kodiak Art Council - - Special Olympics 3,000 3,000 Women's Bay Fire District - - Fire Service District 1 - - KMXT Public Radio 5,000 5,000 Professional services 2.000 1.973 Total expenditures 92.000 91,973 Excess (deficiency) of revenues over expenditures $(92.000 (91,973) Fund balance at beginning of year 91.973 Fund balance at end of year $ -0- 27 2Z 27 $ 38,228 6,104 44,332 15,000 22,000 20,000 20,000 1,600 2,500 10,000 3,000 5,000 9,500 2,900 20,000 7,500 3,000 5,000 5,000 2,000 (109,668) 201.641 $ 91.973 -70- KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FEDERAL AND STATE GRANT PROGRAMS - MENTAL HEALTH CENTER STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year ended June 30, 1988 with comparative figures for 1987 Schedule 14 Continued -71- 1988 Variance Favorable 1987 _ Budget Actual ( Unfavorable ) Actual Revenues: State sources: Grant $ 194,219 $ 196,358 $ 2,139 $ 195,700 Shared revenue 393,070 395,330 2,260 331,072 CSP grants 151,965 142,754 (9,211) 98,115 Licenses, permits, fees and other local revenues: Organization user fees 164,895 178,191 13,296 176,777 Individual user fees 161,760 157,863 (3,897) 158,263 Miscellaneous 850 112 (738) 887 Investments and property: Rental fees 12,000 12,000 - 12,000 Interest _ 6,000 4,959 (1,041) 6,104 Total revenues 1,084,759 1,087,567 2,808 978.918 Expenditures - health and sanitation - mental health program: Personnel 876,370 869,079 7,291 749,626 Travel 25,484 22,670 2,814 18,246 Facility 63,905 57,747 6,158 52,713 Supplies 45,600 47,989 (2,389) 47,559 Equipment 19,500 18,173 1,327 23,816 Other 133,900 132,460 1,440 118,390 Bad debts - 4, 77 (4 $77) 28,130 1,164,759 1,152,995 11,764 1,038,480 Less charged to federal revenue sharing - - - 10.00 Total expenditures 1,164,759 1.152.995 11,764 1.028,480 Excess (deficiency) of revenues over expenditures (80,000 (65.428 14,572 (49,562 Operating transfers in 80,000 80,000 - 80,000 Operating transfers out - (7,036 (7.036 (9,353 Net operating transfers 80,000 72,964 (7,036 70.647 Continued -71- Schedule 14 (Continued KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FEDERAL AND STATE GRANT PROGRAMS - MENTAL HEALTH CENTER STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Excess of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ 7,536 $7.536 $ 21,085 211,292 $ 218,82 8 -72- 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, 1988 with comparative figures for 1987 Revenues: State sources: Community and regional affairs grant 1987 Community and regional affairs grant 1986 Total revenues Expenditures - planning and community development: Planning and zoning Excess of revenues over expenditures Fund balance at beginning of year Fund balance at end of year Schedule 15 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $32,400 $32,220 $(180) $ - - - 7.146 3 32,220 (180 7.146 32,400 32,22 180 7.146 i_ - $ - - -73- 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, 1988 with comparative figures for 1987 Revenues - State sources Expenditures - health and sanitation - day care payments Excess (deficiency) of revenues over expenditures Fund balance at beginning of year Fund balance at end of year Schedule 16 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $207,429 $199,215 207.429 199,215 401 401 $(8,214) $168,256 8,214 168,682 (426) -74- Schedule 17 ' KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS EDUCATION r� STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year ended June 30, 1988 with comparative figures for 1987 Revenues: State sources Federal sources Licenses, permits, fees and other local revenues: Food sales Pupil activities Other local revenues Total revenues Expenditures: Education support: Regular instruction Vocational education instruction Correspondence study instruction Special education instruction Gifted and talented instruction Bilingual /bicultural instruction Pupil support School administration District administration Operation and maintenance Food services Community services Pupil activities Pupil transportation Total expenditures Excess (deficiency) of revenues over expenditures Operating transfers in Operating transfers out Net operating transfers Continued 1 1 3,062,415 2,906,964 (155,451 3.092,705 ' 2,080,879 2,109,375 28,496 1,999,492 (5,183,579 (4,524,896 658.683 (5,482.117 (3,102.700 (2,415,521 687,179 (3.482,625 1 -75- 1 1988 Variance Favorable 1987 Budget _ Actual ( Unfavorable ) Actual $18,303,390 $17,423,440 $ (879,950) $17,396,012 1,235,427 788,491 (446,936) 582,850 1 102,100 98,086 (4,014) 86,435 6,000 6,738 738 5,113 35,335 53.091 17.7 169.791 19,682.252 18,369,846 (1,312,406 18,240.201 7,078,955 6,458,663 620,292 6,167,304 699,800 670,765 29,035 708,658 i 128,290 126,258 2,032 109,363 1,632,870 1,533,006 99,864 1,178,924 142,310 137,578 4,732 - 162,015 157,152 4,863 152,242 777,880 723,686 54,194 822,375 1,028,436 1,013,907 14,529 644,054 1,073,151 944,296 128,855 2,048,523 2,787,457 2,612,997 174,460 2,394,558 267,100 248,459 18,641 227,874 ' 21,739 21,317 422 54,789 382,432 373,484 8,948 210,251 437,402 441.314 (3.912 428,581 ' 16,619,837 15,462.882 1.156.955 15,147.496 3,062,415 2,906,964 (155,451 3.092,705 ' 2,080,879 2,109,375 28,496 1,999,492 (5,183,579 (4,524,896 658.683 (5,482.117 (3,102.700 (2,415,521 687,179 (3.482,625 1 -75- 1 Schedule 17 (Continued KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Adjustment to reserve for fuel inventory Fund balance at end of year 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $ (40.285 $ 491,443 $ 531.728 $ (389,920) 625,914 1.515 $1.118.872 1,005,766 10,068 $ 625.914 -76- KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS BUILDINGS AND GROUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year ended June 30, 1988 with comparative figures for 1987 Revenues: Investments and property: Rental Sales of property and equipment Interest income Miscellaneous income Total revenues 988 Variance Favorable Budget Actual ( Unfavorable ) $ 283,330 $ 273,876 8,000 - - 1,069 27,205 291.330 302,150 $(9,454) (8,000) 1,069 27,2 10,820 Expenditures: General administration: School buildings Borough building Apartments Refuse collection and disposal Parks operation and maintenance Total expenditures Excess (deficiency) of revenues over expenditures Operating transfers in Excess (deficiency) of revenues and operating transfers in over expenditures Fund balance (deficit) at beginning of year Fund balance (deficit) at end of year 368,500 313,576 174,990 176,915 24,010 14,828 15,050 13,934 5,92 525,176 (298,220) (223,026) 300,000 300,000 $ 1.780 76,974 (49,051 $ 27.923 -77- 54,924 (1,925) 9,182 1,116 1,077 64,374 75,194 $75, 194 Schedule 18 1987 Actual $ 277,456 277,456 368,519 211,500 46,021 ' 20,157 4,863 ' 651,060 (373,604) ' 163,100 (210,504) ' 161,453 ' $ (49.051) DEBT SERVICE FUND These funds were established to finance and account for the payment of interest 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. SCHOOL BONDS 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 construct schools. 1 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. t KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS COMBINING BALANCE SHEET June 30, 1988 with comparative figures for 1987 ASSETS Cash and investments: Equity in central treasury Temporary cash investments Cash with fiscal agent Receivable from State of Alaska Accrued interest receivable LIABILITIES AND FUND BALANCES Advance from central treasury Other Fund balances - designated for subsequent year expenditures Schedule 19 Totals School Bonds Other 1988 1987 $ 983,852 $133,423 $1,117,275 $ 144,215 4,473,809 - 4,473,809 6,221,603 1,445,913 - 1,445,913 1,462,905 118,108 - 118,108 244,517 71,984 - 71.084 95,236 $7.092.766 $133.423 $7.226.189 $8.168.476 $ - $ - $ - $ 744,969 785 - 785 - 7,091.981 133,423 7,225,404 7,423.507 $7.092.766 $133,42 $7.226.189 $8.168.476 -78- Schedule 20 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year ended June 30, 1988 with comparative figures for 1987 Totals School Bonds Other 1988 1987 Revenues - investments and property - interest income $ 488,470 $ - $ 488,470 $ 430,891 Expenditures - debt service: Principal 3,785,834 - 3,785,834 4,750,417 Interest 1,546,117 - 1,546,117 1,704,176 Fiscal agent fees 148,874 - 148,874 82,812 Other 477 - 477 396 Total expenditures 5.481.302 - 5,481,302 6.537.801 Excess (deficiency) of revenues over expenditures (4,992,832 - (4,992.8.U (6,106.910 Operating transfers in: General Fund 300,000 - 300,000 390,273 Special Revenue Funds: Mental Health Center - 7,036 7,036 9,353 Education 4,415,521 - 4,415,521 5,226,425 Capital Projects Fund 90,000 - 90,000 - Hospital Debt Service Fund - - - 12,2 4,805,521 7,036 4,812,557 5,638,299 Operating transfers out: General Fund - 16,664 16,664 - Special Revenue Fund: Fire Service District Area 1 - 1,164 1,164 1,070 Debt Service Fund - 12.248 - 17.828 17,828 13.318 Net operating transfers 4,805.521 (10,792 4,794,729 5,624,981 Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out (187,311) (10,792) (198,103) (481,929) Fund balances at beginning of year 7.279,292 144,215 7.423.507 7,905.436 Fund balances at end of year $ 7.091.981 $133,42 $7.225.404 $ 7.423.507 -79- KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS SCHOOL BONDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year ended June 30, 1988 with comparative figures for 1987 Schedule 21 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual Revenues - investments and property - interest income $ 400,000 $ 488,470 $ 88,470 $ 412,578 , Expenditures - debt service: Principal 4,335,830 3,785,834 549,996 4,450,417 Interest 1,811,940 1,546,117 265,823 1,689,551 , Fiscal agent fees 127,230 148,874 (21,644) 82,661 Other 225,000 477 224,523 - Total expenditures 6,500.000 5.481.302 1.018.698 6.222,629 Excess (deficiency) of I revenues over expenditures (6,100,000 (4,992.832 1,107,168 (5,810,051 ' Operating transfers in: P 8 General Fund 300,000 300,000 - 383 Education Special Revenue Fund 5,117 4,415,521 (702,329) 5,226,425 Hospital Debt Service Fund - 12,248 ' Capital Projects Fund 90,000 90.000 - - Total operating transfers 5,507,850 4.805.521 (702,329 5.621.893 Excess (deficiency) of revenues and operating transfers in over expenditures $ (592.150 (187 $ 404.839 (188,158) Fund balance at beginning of year 7,279,292 7,467,450 Fund balance at end of year $ 7.091.981 $ 7.279.292 , -80- � I � I � I 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. VARIOUS BOROUGH PROJECTS This fund accounts for a variety of capital projects not accounted for in ' another fund, including projects financed by the State of Alaska Municipal Aid Program. 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 monies received from the State of Alaska for the construction of various projects. SCHOOL MAJOR MAINTENANCE This fund accounts for money transferred from the Land Sales Fund for the major repairs and maintenance of school buildings. f] F, KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1988 with comparative figures for 1987 ASSETS Cash and investments: Equity in central treasury Temporary cash investments Receivables: City of Kodiak Other State of Alaska Accrued interest Due from other funds LIABILITIES AND FUND BALANCES Liabilities: Advance from central treasury Accounts payable Retainages payable Deferred revenue General obligation demand bonds payable Total liabilities Fund balances: Reserved for encumbrances Unreserved - designated for subsequent year expenditures Undesignated Total fund balances School Various Equipment Borough School Bond and Projects Improvements Furnishin¢s $854,163 $ - $ - - 5,066,345 - 9,282 - 12,698 - - - 203,072 - - - 243,481 $876.143 5.269.417 $243,481 $ - $ 1,012,499 $ - 231,335 7,267 346,037 - 185,998 - - - 2,750. - 185,998 4,339.871 7,267 183,090 4,652,504 97,329 507,055 - 138,885 - (3,L2 258) - 690,145 929.546 236,214 $876.143 $ 5.269.417 $243,4 Iffja Schedule 22 State School Totals Capital Major Grants Maintenance 1988 1987 $1,463,288 $ 3,726 $ 2,321,177 $ 3,304,191 - 1,063,309 6,129,654 9,784,936 - - - 175,000 - - 9,282 268,242 42,978 - 55,676 413,882 - 18,538 221,610 189,509 - - 243.481 52,023 $1.506.266 $1.085.573 $ 8.980.880 $14.187.783 $ - $ - $ 1,012,499 $ 616,280 20,061 - 258,663 468,721 93,286 - 439,323 297,445 1,080,534 - 1,266,532 1,397,733 - - 2,750 4,800 1.193,881 - 5.727.017 7,580,179 252,792 - 5,185,715 2,904,397 59,593 1,085,573 1,791,106 3,703,207 - - (3.722.958 - 312,385 1.085,573 3,253,863 6,607,604 -82- KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year ended June 30, 1988 with comparative figures for 1987 Revenues: State sources Federal sources Licenses, fees, permits and other local revenues Investments and property Expenditures: Capital improvements: Schools General Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Insurance proceeds Asbestos settlement Demand bond principal payments Operating transfers in Operating transfers out Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Fund balances at beginning of year Residual equity transfer Fund balances at end of year Various Borough School Bond Projects Improvements $ 17,715 $ - 53 .345- 512.0 71.060 512,902 - 7,439,696 69,890 - 69.890 7,439,696 1,170 (6,926.794 1,414,685 634,061 - 2,050,000 10,000 - ( 60.000 ) (843.903 (50.000 3.254,843 (48,830) (3,671,951) 738,975 4,601,497 $690.145 $ 929.546 -83- Schedule 23 School Equipment State School Totals and Capital Major Furnishings Grants Maintenance 1988 1987 $ 9,900 $1,252,942 5,000 - - 12,201 14,900 1,265.143 155,810 - - 1,709.330 155.810 1,709,330 $ - $ 1,280,557 $ 6,419,199 - 311,639 5,000 1,007,293 78,525 656.973 752,960 78,525 1,942,530 8.491.091 7,595,506 3,187,372 1.779,220 7,189,217 9,374,726 10.376,589 (140.910 (444.187 78,525 (7.432,196 (1,885,498 - - - 1,414,685 - - - - 634,061 - - - - 2,050,000 1,850,000 336,093 547,419 - 893,512 1,411,109 (9,900 - - (913,803 (415.899 326,193 547,419 - 4,078,455 2,845,210 185,283 103,232 78,525 (3,353,741) 959,712 50,931 209,153 1,007,048 6,607,604 5,666,358 - - - - (18.466 236,214 $ 312.385 $1.085.573 $ 3.253.863 $ 6.607.604 -84- KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS For the year ended June 30, 1988 -85- Transfers and Closed Total Project Prior 1988 Adiustments Projects Appropriation Schools: 44 -202 Work of Art - Auditorium $ 33,090 $ - $ - $ - $ 33,090 44-253 Asbestos Removal Program 41,000 - - (41,000) - 44 -278 Landscaping 10,000 - - - 10,000 45 -245 School Auditorium 9,991,080 - - (9,991,080) - 45 -249 Maintenance Shop 1,739,600 - - (1,739,600) 45 -283 Handicap Code Roof 974,121 800,000 51,499 - 1,825,620 45 -284 Larsen Bay School 1,729,712 100,000 40,138 - 1,869,850 45 -285 Peterson Elementary 564,990 - 29,870 - 594,860 45 -286 East Elementary School 29917,525 8,918 84,365 - 3,010,808 45 -287 Old Harbor School 1,753,418 - 92,722 - 1,846,140 45 -288 Port Lions School 1,753,418 350,000 (57,278) - 2,046,140 45 -289 Port Lions Gym - 1,781,589 139,990 - 1,921,579 47 -183 School Crossing Lights 160,210 - - (160,210) - 47 -195 School Upgrade 169,000 - - (169,000) - 47 -203 East Elementary Ballfield 40,980 - - - 40,980 47 -247 Handicap Barrier Removal - - 9,900 - 9 47 -248 High School Track 300,000 - (4,280) - 295,720 47 -253 Asbestos Removal Program 2,815,000 - - - 2,815,000 27 -279 School Major Maintenance - 50,000 - - 50,000 N/A School Equipment 224,799 5,000 336,093 - 565,892 Park Improvements: 44 -254 Park Development 185,000 30,000 - - 215,000 Road Projects: 42 -148 Sawmill - Lakeview 86,955 - - (86,955) - 44-201 Sergeant Creek Road 819,533 - 120,467 - 940,000 44 -281 Chiniak Subdivision 700,000 - - _ 700,000 47 -192 Women's Bay Paving 156,000 - - - 156,000 47 -194 Area Wide Roads 825,447 - (53,500) (771,947) - 47 -247 Lilly Dry - Phase I 740,000 - - (740,000) - 47 -255 Lakeside Improvement 2,747,200 - (37,560) - 2,709,640 47 -257 Lilly Dry - Phase II 972,233 - 129,633 - 1,101,866 47 -266 Antone Balika Melnitsa 595,000 - (129,633) (465,367) - Other: 44 -133 Borough Bldg Roof 209,000 - - (209,000) - 44 -191 Land Disposal FY-85 60,000 - - (60,000) - 44 -315 Bayside Fire Equipment 7,200 10,000 10,000 (7,200) 20,000 44 -323 Ouzinkie Fisheries 9,850 - - - 9,850 47 -158 Emergency Medical Services 124,313 - (124,313) - - 47 -159 Akhiok Medical Clinic 149,417 - - (149,417) - 47 -177 Chiniak Emergency Building - 100,000 - - 100,000 47 -180 Hospital Site Preparation - 111,900 - - 111,900 47 -186 Hospital Heli Pad - 250,000 - - 250,000 47 -187 Hospital Construction 923,810 - - - 923,810 47 -188 Hospital Equipment 157,600 - - (157,600) - 47 -189 Hospital Design Dev 1 - - - 1,000,000 47 -208 State Fairgrounds 84,567 25,000 - (109,567) - 47 -211 Karluk Fire Equipment 100,000 - (100 - - 47 -213 Water Sewer Landfill - 225,000 - - 225,000 47 -242 Karluk Lake Fertilization 60,000 60,000 - - 120,000 47 -259 Karluk Electric System 368,160 - - (368,160) - 47 -260 Village Projects 300,000 - - (300,000) - 47 -263 Solid Waste Facility 3,135,000 - - - 3,135,000 47 -271 Karluk Public Building 126,100 - (5 - 121,100 47 -274 Akhiok Equipment Shed 100 - - (100,000) - 47 -316 Larsen Bay Landfill 100,000 - - (100,000) - Other Akhiok Projects: 47 -206 Akhiok Landfill 100,000 - - (100,000) - 47 -212 Akhiok Generator Repair 44,000 - - (44,000) - 47 -258 Akhiok Airport Road 560,000 - - (560,000) - 47 -267 Akhiok Bldgs KIH -KIB 183,185 - 46,840 (230,025) - 47 -275 Akhiok Water Supply Dam 180.000 - (180.000 - Total Other Akhiok Projects 1,067,185 - 46,840 (1,114,025) - Undesignated: 44 -209 Undesignated Projects 44,335 - (39,385) - 4,950 45 -209 Undesignated Projects (48,244) 255,000 (56,916) (43,090) 106,750 47 -209 Undesignated Projects 870.320 - (1.004.145 - (133.825 Total Capital Projects $41.993.924 $4.162.407 $ (520.493) $(16.883.218) $28.752.620 -85- 209,000 - - (209,000) 60,000 Unencumbered - (60,000) _ - _ Closed Total Unexpended Current Balance Prior 1988 Adjustments Projects Expenditures Balance Encumbrance (Deficit) $ - $ - $ - $ - $ - $ 33,090 $ - $ 33,090 41,000 - - (41,000) - - - - - - 5,015 - - 5,015 4,985 - 4,985 9,991,080 - - (9,991,080) - - - - 1,739,600 - - (1,739,600) - - - - 253,994 54,720 367,770 25,879 - 393,649 1,431,971 1,406,858 25 85,305 1,710,341 45,288 - 1,840,934 28,916 300 28,616 - 9,453 15,010 - 24,463 570,397 - 570,397 188,741 2,456,564 82,475 - 2,727,780 283,028 397,095 (114,067) 117,070 106,287 46,582 - 269,939 1,576,201 1,861,710 (285,509) 180,995 1,512,939 46,582 - 1,740,516 305,624 252,437 53,187 1,276,342 - - 1,276,342 645,237 734,104 (88,867) 160,210 - - (160,210) - - - - 169,000 - - (169,000) - - - - 37,071 3,909 - - 40,980 - - - - 9,900 - - 9 - - - 77,523 218,197 - - 295,720 - - - 2,736,602 - - - 2,736,602 78,398 - 78,398 50,000 - 50,000 173,868 155,810 - - 329,678 236,214 97,329 138,885 175,154 39,029 - - 214,183 817 - 817 86,955 - - (86,955) - - - _ 736,287 17,715 - - 754,002 185,998 - 185,998 2,264 3,281 - - 5,545 694,455 183,090 511 152,512 3,488 - - 156,000 - - - 766,710 - 5,237 (771,947) - 316,520 - - (316,520) - - _ _ 1,966,866 4 - - 1,971,811 737,829 65,498 672,331 41,586 285,020 - - 326,606 775,260 - 775,260 470,604 - (5,237) (465,367) - _ _ - 209,000 - - (209,000) 60,000 - - (60,000) _ - _ _ 7,200 - - (7,200) - 20,000 - 20,000 5,000 4,850 - - 9 - - _ 149,417 - - (149,417) - - _ _ - 100,000 - 100,000 - 111,900 - - 111,900 - - _ 2,189 - - 2,189 247,811 - 247,811 495,000 246,339 - - 741,339 182,471 132,574 49,897 157,600 - - (157,600) - - _ - 393,210 352,796 - - 746,006 253,994 54,720 199,274 84,567 25,000 - (109 - _ - _ 225,000 - - 225,000 43,189 76,811 - - 120,000 368,160 - - (368,160) - 300,000 - - (300,000) - 3,174,234 113,384 - - 3,287,618 (152,618) - (152,618) 109,334 11,766 - - 121,100 100,000 - - (100,000) - 100,000 - - (100,000) 1,095 - (1,114,025) - _ - 18,686 - - - - - - 4,950 - 4,950 6.448 - - - - - - 6.448 106,750 - (173 - 106,750 (140.273 $27.271.221 $9.374.726 $261.816 $(16.416.648) 520.491.115 $8.261.505 $5.185.715 $3.075,790 -86- '1 � I !I ENTERPRISE FUNDS 1 1 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. 1 SANITARY LANDFILL FUND This fund accounts for all activity of the Borough owned sanitary landfill and ' garbage collection utility. WATER AND SEWER ENTERPRISE FUND 1 This fund accounts for all activity of the Borough owned and operated water and sewer utility. 1 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. t t r KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING BALANCE SHEET June 30, 1988 with comparative figures for 1987 ASSETS Water Totals Sanitary and Sewer Current assets: Landfill Utility Hospital 1988 1987 Equity in central treasury $ 25,582 $ 19,684 $ - $ 45,266 $ 160,839 Temporary investments - 200,000 - 200,000 - Other cash and cash equivalents - - 231.508 _2231.508 - 25.582 219.684 231.508 476.774 160.839 Receivables: Customers and patients 23,536 63,775 1,442,750 1,530,061 1,188,116 Lutheran Hospitals and Homes Society of America - - 283,141 283,141 306,774 City of Kodiak - - 6,251 6,251 4,073 Third party patient payors - - 178,947 178,947 116,621 State revenue sharing - - 87.500 87.50 93.750 23,536 63,775 1,998,589 2,085,900 1,709,334 Less allowance for doubtful receivables - 9.283 246.000 255. 124.283 Net receivables 23.536 54.492 1.752.589 1.830.617 1.585.051 Inventories at cost - - 173.803 173.803 146.244 Total current assets 49.118 274.176 2.157.900 2.481.194 1.892.134 Restricted assets: Equity in central treasury - 180,127 - 180,127 119,057 Temporary investments - - - - 750,000 Receivable from State of Alaska - 367.813 - 3(7.8 220.000 Total restricted assets - 547.940 - 547.940 1.089.057 Borough designated investment - - 810,397 810,397 760,134 Long -term receivable from Lutheran Hospitals and Homes Society of America - - 1.846.000 2.656.397 1.846.000 2.656.397 1.118.000 Fixed assets, at cost: - - 1.878.134 Unclassified utility plant in service 2,332,173 15,542,398 - 17,874,571 10,489,226 Hospital building and fixed equipment - - 4,012,091 4,012,091 3,984,773 Major movable equipment 102.640 - 1.531.732 1.634.372 1.448.765 2,434,813 15,542,398 5,543,823 23,521,034 15,922,764 Less accumulated depreciation 56.092 897.683 x'„107.817 3.061.592 2.459.917 2,378,721 14,644,715 3,436,006 20,459,442 13,462,847 Construction work in progress - 87.897 - 87.897 3.328.506 Net fixed assets 2.378.721 14.732.612 3.436.006 20.547.339 16.791.353 $2.427.839 $15.554.728 $8.250.303 $26.232.870 $21.650.678 -87- Schedule 25 LIABILITIES AND FUND EOU.I1 Other accrued liabilities - - 5,967 5,967 25,775 2,781 17,106 285,832 305,719 295,109 Payable from restricted assets: Contracts payable - 19,995 - 19,995 364,472 Retainage payable - 40,651 - 40,651 146,449 Unearned grant receipts - - - - 3,364 Total liabilities 2,781 77,752 285,832 366,365 809,394 Fund equities: Contributions in aid of construction: City of Kodiak State of Alaska Federal government Kodiak Island Borough Less amortization of contributions in aid of construction Net contributions in aid of construction Retained earnings: Undesignated Total fund equities - 229,166 - 229,166 229,166 2,412,453 15,201,130 - 17,613,583 13,368,437 - 200,000 2,237,104 2,437,104 2,457,233 2,412,453 15,630,296 3,663,270 21,706,019 17,437,687 54,974 895,623 950,597 592.095 14,734,673 67,579 742,303 x, 301.201 5,111,083 3,995,692 2,425,058 15,476,976 7,964,471 25,866,505 20,841,284 $2,427,839 $15,554,728 $8,250,303 $26,232,870 $21,650,678 -88- Water Totals Sanitary and Sewer Landfill Utility Hospital 1988 1987 Liabilities: Payable from current assets: Bank overdraft $ - $ - $ - $ - $ 9,710 Advance from central treasury - - - - 2,601 Accounts payable 445 9,805 41,750 52,000 54,994 Customer deposits - 7,301 - 7,301 10,506 Accrued compensation 2,336 - 238,115 240,451 191,523 Other accrued liabilities - - 5,967 5,967 25,775 2,781 17,106 285,832 305,719 295,109 Payable from restricted assets: Contracts payable - 19,995 - 19,995 364,472 Retainage payable - 40,651 - 40,651 146,449 Unearned grant receipts - - - - 3,364 Total liabilities 2,781 77,752 285,832 366,365 809,394 Fund equities: Contributions in aid of construction: City of Kodiak State of Alaska Federal government Kodiak Island Borough Less amortization of contributions in aid of construction Net contributions in aid of construction Retained earnings: Undesignated Total fund equities - 229,166 - 229,166 229,166 2,412,453 15,201,130 - 17,613,583 13,368,437 - 200,000 2,237,104 2,437,104 2,457,233 2,412,453 15,630,296 3,663,270 21,706,019 17,437,687 54,974 895,623 950,597 592.095 14,734,673 67,579 742,303 x, 301.201 5,111,083 3,995,692 2,425,058 15,476,976 7,964,471 25,866,505 20,841,284 $2,427,839 $15,554,728 $8,250,303 $26,232,870 $21,650,678 -88- KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Year ended June 30, 1988 with comparative figures for 1987 Revenues: Water sales Sewer service charges Sanitary landfill user fees Patient revenues Installation charges Other Total revenues Operating expenses: Personal services Purchased water and sewer treatment Contracted services Repairs and maintenance Depreciation Installation costs Professional care of patients Plant operations and household General administrative Other Total operating expenses Operating income (loss) Other income: Interest income Other, primarily State of Alaska revenue sharing Earnings (loss) before operating transfers Operating transfers in Operating transfers out Net operating transfers 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 Water and Sanitary Sewer Landfill Utility- Hospital $ - $ 172,875 $ - - 216,125 449,488 - - - - 6,087,580 33,014 - - 12.713 90.6 449,488 434,727 6.178.200 92,144 57,585 - - 216,890 - 487,465 - - 5,988 35,475 - 56,092 303,559 266,618 - 27,112 - - - 2,704,084 - - 906,166 - - 1,580,947 95,246 21.189 736,935 661,810 5,457,815 (287.447 (227.083 720.385 - 22,933 - 343.101 22,933 343.101 (287,447) (204,150) 1,063,486 290,000 - - - (105. - 290,000 (105,000 - 2,553 (309,150) 1,063,486 54,974 303.528 57,527 (5,622) 1,063,486 10,052 747,925 3,237,715 $ 67.579 742 ,303 $4.301.201 -89- Schedule 26 Totals 1988 1987 $ 172,875 $ 156,901 216,125 184,762 449,488 158,942 6,087,580 5,009,194 33,014 94,463 1 99,188 7,062.415 5,703,450 149,729 50,896 216,890 235,781 487,465 146,613 41,463 24,989 626,269 446,413 27,112 76,641 2,704,084 2,483,452 906,166 875,788 1,580,947 1,538,427 116,435 22,908 205,855 (198,458 22,933 95,900 343.101 317.603 366• 413,503 571,889 215,045 290,000 - (105,00Q) - 185.000 - 756,889 215,045 358,502 197,077 1,115,391 412,122 3,995,692 3,583,570 $5.111.083 $3.995.692 .M KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION Year ended June 30, 1988 with comparative figures for 1987 Sources of working capital: Operations: Net earnings (loss) Depreciation which does not use working capital Working capital provided from (absorbed by) operations State of Alaska grants Contribution from Kodiak Island Borough General Fund for purchase of equipment Net decrease in restricted assets Total sources of working capital Uses of working capital: Acquisition of fixed assets Increase in long -term receivable Funding of Borough designated investments Net decrease in current liabilities payable from restricted assets Total uses of working capital Increase (decrease) in working capital Changes in components of working capital: Increase (decrease) in current assets: Other cash and cash equivalents Equity in central treasury Receivables Inventories Prepaid expenses Sanitary Landf ill $ 2,553 56,092 58,645 2,412,453 Water and Sewer Utility $ (309,150) 303,559 (5,591) 1,812,564 Increase (decrease) in current liabilities: Advance from central treasury Bank overdraft Accounts payable Customer deposits Accrued liabilities Increase (decrease) in working capital 541.117 2.471,098 2.348.090 2,434,813 1,812,564 453,639 2,434.813 2,266,203 $ 36.285 $ 81.887 $ - $ 200,000 25,582 (141,155) 5,739 9,670 (2,601) - (4,699) (10,167) - (3,205) 2,336 - (4.964 (13,372 $ 36,285 $ 81.887 -91- Schedule 27 Totals Hospital 1988 1987 $1,063,486 $ 756,889 $ 215,045 266,618 626.269 446.413 50,263 50,263 1,330,104 1,383,158 661,458 - 4,225,017 2,042,496 43,315 43,315 140,318 - 541,117 2.767.985 1,373,419 6,192.607 5.612.257 134,878 4,382,255 2,276,245 728,000 728,000 298,000 50,263 50,263 760,134 - 453.639 2,866.281 913,141 5.614.157 6,200,660 489,224 589.060 (523.555 $ 460.278 $ 578.450 $ (588.403 $ 231,508 $ 431,508 $ (56,448) - (115,573) 12,911 230,157 245,566 (479,558) 27,559 27,559 11,870 - - (12,330 489,224 589.060 (523.555 (9,710) 11,872 26.784 28,946 $ 460.278 (2,601) (9,710) (2,994) (3,205) 29,120 10,610 $ 578.450 2,601 9,710 4,906 3,786 43,845 64,848 $ (588.403) -92- KODIAK ISLAND BOROUGH SANITARY LANDFILL ENTERPRISE FUND BALANCE SHEET June 30, 1988 with comparative figures for 1987 Schedule 28 1988 1987 Current assets: Equity in central treasury $ 25,582 $ - Customer receivables 23.536 17,797 Total current assets 49,118 17,797 Fixed assets, at cost: Unclassified plant in service 2,332,173 - Major movable equipment 102.640 - 2,434,813 - Less accumulated depreciation 56,092 Net fixed assets 2,378,721 - $2.427.839 $17.797 X.34-IF40 WEWMAP Liabilities: Current liabilities: Advance from central treasury $ - $ 2,601 Accounts payable 445 5,144 Accrued compensation 2,336 - Total current liabilities 2,781 7,745 Fund equities: Contributions in aid of construction - State of Alaska 2,412,453 - Less amortization of contributions in aid of construction 54.974 - 2,357,479 - Retained earnings, undesignated 67,579 10,052 $2.427.839 $17.797 -93- KODIAK ISLAND BOROUGH SANITARY LANDFILL ENTERPRISE FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL Year ended June 30, 1988 with comparative figures for 1987 Revenues: Sanitary landfill user fees Total revenues Operating expenses: Personal services Contracted services Repairs and maintenance Depreciation Other: Electric Rent Fuel Utilities Printing and binding Automotive and travel Other Total operating expenses Earnings (loss) before operating transfers Operating transfers in Net earnings Amortization of contributions in aid of construction Increase in retained earnings Retained earnings at beginning of year Retained earnings at end of year Schedule 29 Variance (72,144) 3,717 Favorable 1987 Budget Actual ( Unfavorable ) Actual - 56,092 $ 602,000 $ 449,488 V152.512) $158,942 602,000 449,488 (152,512 158.942 20,000 92,144 (72,144) 3,717 780,000 487,465 292,535 144,933 - 5,988 (5,988) - - 56,092 (56,092) - - 15,236 (15,236) - 92,000 36,617 55,383 - - 6,198 (6,198) - - 3,282 (3,282) - - 230 (230) - - 632 (632) - - 33,051 (33,051 240 MIA] (290,000) (287,447) 2,553 10,052 290,000 290,000 - - 2,553 2,553 10,052 54,974 54,974 - - 57,527 57,527 10,052 10,052 10,052 - 10,052 $ 67.579 $ 57.527 10,052 -94- KODIAK ISLAND BOROUGH SANITARY LANDFILL ENTERPRISE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION Year ended June 30, 1988 with comparative figures for 1987 Sources of working capital: Operations: Net earnings Depreciation which does not use working capital Working capital provided by operations State of Alaska grants Total sources of working capital Uses of working capital: Acquisition of fixed assets Total uses of working capital Increase in working capital Changes in components of working capital: Increase (decrease) in current assets: Equity in central treasury Receivables Increase (decrease) in current liabilities: Advance from central treasury Accounts payable Accrued compensation Increase in working capital • . 1 $ 2,553 $10,052 56,092 - 58,645 10,052 2.412.453 - 2.471,098 10,052 2,434,813 - 2.434.813 - $ 36.285 W.052 $ 25,582 $ - 5,739 17,797 31,321 17.797 (2,601) 2,601 (4,699) 5,144 2,336 - (4.964 7,745 E toltilm -95- KODIAK ISLAND BOROUGH WATER AND SEWER ENTERPRISE FUND BALANCE SHEET June 30, 1988 with comparative figures for 1987 ASSETS Current assets: Equity in central treasury $ 19,684 $ 160,839 Temporary investments 200,000 - Customer receivables 63,775 54,105 Less allowance for doubtful receivables (9.283 (9,283 Net customer receivables 54,492 44,822 Total current assets 274.176 205,661 Restricted assets: Equity in central treasury 232,891 119,057 Temporary investments - 750,000 Receivable from State of Alaska 315,049 220,000 Total restricted assets 547.940 1.089,057 Fixed assets, at cost: Unclassified utility plant in service 15,542,398 10,489,226 Accumulated depreciation (897.683 (594,125 Net utility plant in service 14,644,715 9,895,101 Construction work in progress 87,897 3.328.506 Net fixed assets 14,732,612 13.223.607 $15.554.728 $14.518.325 -96- Schedule 31 LIABILITIES AND FUND EQUITY Liabilities: Current liabilities: Payable from current assets: Accounts payable Customer deposits Total payable from current assets Payable from restricted assets: Contracts 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: Undesignated Total fund equity 1988 1987 $ 9,805 $ 19,972 7,301 10,50 17,106 30,478 19,995 364,472 40,651 146,449 - 3,364 60.646 514,285 77,752 544.763 229,166 15,201,130 200,000 15,630,296 (895,623 14,734,673 229,166 13,368,437 220,129 13,817,732 (592,095 13,225,637 742,E 747,925 15.476,976 13.973.562 $15.554.728 $14.518.325 -97- KODIAK ISLAND BOROUGH WATER AND SEWER ENTERPRISE FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL Year ended June 30, 1988 with comparative figures for 1987 Revenues: Water sales Sewer service charges Installation charges Other Total revenues Operating expenses: Water: Personal services Purchased water Repairs and maintenance Depreciation Installation costs Other: Rent Training Advertising and hearings Printing and binding Automotive and travel Office supplies and postage Small tools Total water 1 Schedule 32 1988 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual $169,000 178,000 10,000 12,000 369,000 19,900 109,500 20,350 20,000 6,000 �10i1 250 500 1,000 2,000 5,000 185,000 $172,875 216,125 33,014 12,713 434,727 30,366 71,980 17,850 112,470 8,251 817 25 39 615 1,001 1,116 244.530 $ 3,875 38,125 23,014 713 65,727 (10,466) 37,520 2,500 (92,470) (2,251) (317) (25) 211 (115) (1) 884 5,00 (59,530 $ 156,901 184,762 94,463 6, 753 442.879 22,006 102,781 9,653 68,378 41,429 722 763 59 963 784 944 248,482 1 J r -98- Schedule 32 (Continued KODIAK ISLAND BOROUGH WATER AND SEWER ENTERPRISE FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL (Continued) Year ended June 30, 1988 with comparative figures for 1987 Variance Favorable 1987 Budget Actual ( Unfavorable ) Actual Sewer: Personal services $ 15,000 $ 27,219 Purchased sewer treatment 116,000 144,910 Repairs and maintenance 19,950 17,625 Depreciation 20,000 191,089 Installation costs 2,000 18,861 Other: (656) - Electric 15,000 14,420 Rent 500 693 Training - 25 Advertising and hearings 250 27 Printing and binding - 656 Contracted services - - Automotive and travel 1,000 700 Office supplies and postage - 38 Small tools 1,800 1 Total sewer 191,500 417,280 Total operating expenses 376,500 661,810 Operating loss (1.500 (227.083 Other income (expense): Interest income 7,500 22,933 Loss before operating transfer - 204,150 Operating transfer out 105.000 105,000 Net loss 105,000 309,150 Amortization of contributions in aid of construction - 303,528 Increase (decrease) in retained earnings $(1 05.000 ) (5,622) Retained earnings at beginning of year 747.925 Retained earnings at end of year 742 $ (12,219) $ 25,173 (28,910) 133,000 2,325 15,336 (171,089) 130,729 (16,861) 35,212 580 14,397 (193) 769 (25) 763 223 59 (656) - - 1,680 300 902 (38) - 783 1,543 (225.780 359,563 (285,310 608. 045 (219,583 (165,166 15.433 95,900 (204,150) 69,266 (204,150) 69,266 303.528 197.077 $ 99.378 127,811 620,114 747,92 -99- KODIAK ISLAND BOROUGH WATER AND SEWER ENTERPRISE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION Year ended June 30, 1988 with comparative figures for 1987 1988 1987 Sources of working capital: Operations: Net loss $ (309,150) $ (69,266) Depreciation which does not use working capital 303,559 199.107 Working capital provided from (absorbed by) operations (5,591) 129,841 State of Alaska grants 1,812,564 2,042,496 Net decrease in restricted assets 541,117 2,767.985 Total sources of working capital 2,348,090 4.940.322 Uses of working capital: Construction of plant 1,812,564 2,042,496 Net decrease in current liabilities payable from restricted assets 453.639 2,866.281 Total uses of working capital 2,266,203 4,908.777 Increase in working capital $ 81.887 $ 31.545 Changes in components of working capital: Increase (decrease) in current assets: Equity in central treasury $ (141,155) $ 12,911 Temporary cash investments 200,000 - Customer receivables 9,670 68,515 25,347 38,258 Increase (decrease) in current liabilities: Accounts payable (10,167) 2,927 Customer deposits (3.205 3.786 (13.372 6,713 Increase in working capital $ 81.887 $ 31.545 501415 Schedule 34 KODIAK ISLAND BOROUGH HOSPITAL ENTERPRISE FUND BALANCE SHEET December 31, 1987 with comparative figures for 1986 ASSETS 1987 1986 Current assets: Other cash balances $ 231,508 $ - Receivables: Patients 1,442,750 1,116,214 Lutheran Hospitals and Homes Society of America 283,141 306,774 ' City of Kodiak 6,251 4,073 Third party 178,947 116,621 State revenue sharing Less allowance for doubtful receivables 87,500 (246,000 93,750 (115,900 Net receivables 1,752,589 1,522,432 Inventories, at cost 173,803 146,244 Total current assets 2,157,900 1,668,676 Borough designated investments 810,397 760,134 Receivable from Lutheran Hospitals and Homes Society of America 1,846,000 1,118,000 Fixed assets, at cost: Land 8,009 - Building and fixed equipment 4,004,082 3,984,773 Major movable equipment 1,531.732 1,448.765 5,543,823 5,433,538 Less accumulated depreciation Net fixed assets 2,107.817 1,865,792 3,567.746 3,436,006 $8.250.303 $7.114.556 LIABILITIES AND FUND EQUITY ' Current liabilities: Bank overdraft $ - $ 9,710 Accounts payable 41,750 29,878 ' Accrued liabilities: Compensation 238,115 191,523 Other 5 ,967 25.775 Total current liabilities 285,832 256,886 Fund equity 7,964,471 6,857.670 $8.250.303 $7.114.556 -101 - Schedule 35 KODIAK ISLAND BOROUGH HOSPITAL ENTERPRISE FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY Year ended December 31, 1987 with comparative figures for 1986 1987 1986 Revenues: , Patient $6,484,413 $5,579,432 Less allowances for uncollectible accounts (396,833 (570.238 Net patient revenues 6,087,580 5,009 Other � Q& 92.4 - Total revenues 6.178,200 5,101.629 ' Operating expenses: P 8 P Depreciation 266,618 247,306 Professional care of patients 2,704,084 2,483,452 Plant operation and household 906,166 875,788 General administrative 1.580,947 1,538.427 Total operating expenses 5.457.815 5,144,973 ' Operating income (loss) 720,385 (43,344) Other income, primarily State of Alaska revenue sharing 343,101 317.603 Net earnings 1,063,486 274,259 Fund equity at beginning of year 6,857,670 6,443,093 ' Equity transfers from Kodiak Island Borough 43.315 140.31 Fund equity at end of year $7.964.471 $6.857.670 r] r -102 - KODIAK ISLAND BOROUGH HOSPITAL ENTERPRISE FUND Schedule 36 STATEMENT OF CHANGES IN FINANCIAL POSITION Year ended December 31, 1987 with comparative figures for 1986 Sources of working capital: Operations: Net earnings Depreciation which does not require working capital Working capital provided by operations Contribution from Kodiak Island Borough General Fund for equipment purchases Total sources of working capital Uses of working capital: Purchase of Borough designated investments Loans to Lutheran Hospitals and Homes Society of America Construction of building improvements and purchase of equipment Total uses of working capital Increase (decrease) in working capital Changes in components of working capital: Increase (decrease) in current assets: Other cash balances Receivables Inventories Prepaid expenses Increase (decrease) in current liabilities: Bank overdraft Accounts payable Accrued liabilities Increase (decrease) in working capital $1,063,486 $ 274,259 266,618 247,306 1,330,104 521,565 43.315 140,318 1,373,419 661.883 50,263 760,134 728,000 298,000 134.878 233,749 913,141 1.291, 883 460.278 $ (630.000 $ 231,508 $ (56,448) 230,157 (522,702) 27,559 11,870 - (12,330 489,224 (579.610 (9,710) 9,710 11,872 (3,165) 26,784 43,845 28,946 50.390 -103- � I ' AGENCY FUNDS ' Agency Funds are used to account for assets held by a government as an agent for individuals, private organizations, other governments, and /or other funds. STUDENT ACTIVITIES FUND ' This fund accounts for the operations of the various Kodiak Island Borough School District student organizations. DEFERRED COMPENSATION FUND ' This fund accounts for deferred compensation and accumulated earnings thereon for participants in the Borough's IRC Section 457 Deferred Compensation Plan. KODIAK ISLAND BOROUGH AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS, LIABILITIES AND FUND BALANCES Year ended June 30, 1988 STUDENT ACTIVITIES FUND ASSETS Cash, including time certificates of deposit Other receivables LIABILITIES Accounts payable Due to General Fund Due to student organizations DEFERRED COMPENSATION FUND ASSETS ICMA investments LIABILITIES Due to participants TOTALS - ALL AGENCY FUNDS ASSETS Cash, including time certificates of deposit Other receivables ICMA investments L����� M1 Accounts payable Due to General Fund Due to student organizations Due to participants Balance at Balance at July 1, 1987 Additions Deletions June 30, 1988 $104,984 $262,826 $254,574 $113,236 2.361 236 2.361 236 t l07.34 5 $263.062 $256.935 $113.472 $ 6,005 $ 6,461 $ 6,005 $ 6,461 219 - 219 - 101,121 256,601 250,711 107.011 $107.345 $263.062 $256.935 $113,4 1 356.886 t 26,362 t_ $383.248 356.886 J 26,362 1 $383.248 $104,984 $262,826 $254,574 $113,236 2,361 236 2,361 236 356,886 26,362 - 383.248 $ 464,231 424 $256,93 $496,72 $ 6,005 $ 6,461 $ 6,005 $ 6,461 219 - 219 - 101,121 256,601 250,711 107,011 356.886 26,362 - 383.248 $ 464,231 $289,424 $256.935 $496,72 -104- 1 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 Enterprise Funds. 7 t i i i i KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS ACCOUNT GROUP STATEMENT OF GENERAL FIXED ASSETS BY SOURCE June 30, 1988 General fixed assets: Land Buildings Improvements other than buildings Machinery and equipment Construction work in progress Investment in general fixed assets: Capital Projects Funds: General obligation bonds Federal grants State grants General Fund revenues Special Revenue Funds revenues Contribution from State of Alaska -105- Schedule 38 $ 7,469,315 50,813,669 842,139 2,901,849 9,763.157 $71.790.129 $41,485,686 637,706 14,745,988 4,083,018 361,389 10,476,342 71.790.129 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS ACCOUNT GROUP STATEMENT OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY June 30, 1988 Total Land Staff agencies: Borough mayor $ 6,868 $ - Borough clerk 18,698 - Finance 56,145 - Assessing 18,575 - Community development 24,438 - Engineering 54,569 Data services 274,717 - Resource management 2,530 - Facilities 39,823 - General administration 85,214 - Mental health 56,848 - Total staff agencies 638,425 - Public safety: Emergency preparedness 94,724 - Fire Protection Area 1 632,491 - Women's Bay Fire District 606.698 - Total public safety 1,333,913 - Schools 47,228,201 - Teacher housing 125,715 - General governmental buildings 4,389,264 - Building sites 110,648 110,648 Playgrounds 710,239 - Other 131,900 - Total general fixed assets allocated to functions 54,668,305 110,648 Undeveloped land 7,358,667 7,358,667 Construction work in progress 9,763,157 - Total general fixed assets $71.790.129 $7.469.315 -106- 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Improvements Machinery Other Than and Buildings Buildings Equipment $ 6,868 - 18,698 - - 56,145 - - 18,575 24,438 54,569 274,717 2,530 39,823 85,214 56,848 - - 638,425 94,724 423,750 - 208,741 425.655 - 181,043 849,405 - 484,508 45,449,285 - 1,778,916 125,715 - - 4,389,264 - 710,239 - - 131.900 - 50,813,669 842,139 2,901,849 9,763,157 - - $60.576.826 $842,1 $2.901.849 -107- - A KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS ACCOUNT GROUP STATEMENT OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY Year ended June 30, 1988 Schedule 40 -108- General Fixed General Fixed Assets at Assets at July 1. 1987 Additions Deductions June 30, 1988 Staff agencies: Borough mayor $ 6,868 $ - $ - $ 6,868 Borough clerk 16,659 2,039 - 18,698 Finance 40,760 15,385 - 56,145 Assessing 18,575 - - 18,575 Community development 21,988 2,450 - 24,438 Engineering 40,123 14,446 - 54,569 Data services 254,042 20,675 - 274,717 Resource management 2,530 - - 2,530 Facilities 39,823 - - 39,823 General administration 85,214 - - 85,214 Mental health 56,848 - - 56,848 Total staff agencies 583.430 54.995 - 638,425 Public safety: Emergency preparedness 15,156 79,568 - 94,724 Fire Protection Area 1 632,491 - - 632,491 Women's Bay Fire District 606,698 - - 606,698 Total public safety 1,254.345 79.568 - 1,333.913 Schools 48,308,987 275,031 1,355,817 47,228,201 Teacher housing 125,715 - - 125,715 General governmental buildings 4,268,164 121,100 - 4,389,264 Building sites 110,648 - - 110,648 Playgrounds 710,239 - - 710,239 Other 3,153,235 111,900 3.133,235 131.900 Total general fixed assets allocated to functions 58,514,763 642,594 4,489,052 54,668,305 Undeveloped land 7,358,667 - - 7,358,667 Construction work in progress 681,445 9.302.946 221,234 9.763,157 Total general fixed assets $66.554.875 0.945.540 $4.710.286 $71.790.129 -108- 1 P , 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 monies 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. LI KODIAK ISLAND BOROUGH GENERAL LONG -TERM DEBT ACCOUNT GROUP STATEMENT OF GENERAL LONG -TERM DEBT June 30, 1988 with comparative figures for 1987 Amount available and to be provided for the payment of general long -term debt: Amount available in Debt Service Funds: School serial bonds Accrued annual leave Amount to be provided: School serial bonds Environmental Protection Agency loan General obligation school bonds: 1967 Improvement 1974B Refunding 1980A Improvement 1986A Improvement Environmental Protection Agency loan Accrued annual leave Schedule 41 $ 7,111,644 $ 7,279,292 133.423 144,215 7,245,067 7,423,507 12,298,356 13,845,708 343.749 364,583 12,642,105 14,210,291 $21.633.798 $19.887.172 1,450,000 9,960,000 8,00 19,410,000 343,749 133,423 $ 50,000 1,685,000 10,390,000 9.000,000 21,125,000 364,583 144,215 $19.887.172 $21.633.798 -109- 1 fl 1 1 SECTION 3 STATISTICAL SECTION 1 STATISTICAL TABLES Statistical tables reflect social and economic data, financial trends and the fiscal capacity of the governmental unit. fl r M M M M M= ! M M M M M i M= M M M M KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (a) Last ten fiscal years (a) Includes general fund only. (b) Including operating transfers for this function. Other Operating Transfers $ 153,146 525,603 519,212 506,125 4,742,292 1,185,630 1,080,310 447,669 553,373 890,000 Table 1 Total $2,144,647 2,909,039 3,788,467 3,893,139 8,434,431 4,962,232 4,913,578 4,551,179 5,123,941 5,578,069 (c) Kodiak Island Borough is a second -class borough and does not have road powers. Specific monies are expended for local service roads and trails in the service districts. Subsequent to fiscal period 1978, these monies are administered through a separate fund. (d) The Debt Service Funds are now maintained as separate funds. Some amounts (included in other operating transfers) go to the Debt Service Funds from the General Fund. 110 Local Service Fiscal General Roads and Health and Debt Year Government Trails (c) Sanitation (b) Education (b) Service 1979 $ 876,891 $ - $163,455 $ 824,164 $126,991 1980 995,585 - 189,280 1,113,882 84,689 1981 1,525,087 - 342,696 1,298,585 102,887 (d) 1982 1,694,923 - 785,644 906,447 - 1983 1,857,316 2,034 446,001 1,386,788 - 1984 1,588,182 - 709,508 1,478,912 - 1985 1,677,539 - 547,388 1,608,341 - 1986 1,877,136 - 563,516 1,662,858 - 1987 2,089,508 - 579,930 1,901,130 - 1988 1,964,710 545,954 2,177,405 (a) Includes general fund only. (b) Including operating transfers for this function. Other Operating Transfers $ 153,146 525,603 519,212 506,125 4,742,292 1,185,630 1,080,310 447,669 553,373 890,000 Table 1 Total $2,144,647 2,909,039 3,788,467 3,893,139 8,434,431 4,962,232 4,913,578 4,551,179 5,123,941 5,578,069 (c) Kodiak Island Borough is a second -class borough and does not have road powers. Specific monies are expended for local service roads and trails in the service districts. Subsequent to fiscal period 1978, these monies are administered through a separate fund. (d) The Debt Service Funds are now maintained as separate funds. Some amounts (included in other operating transfers) go to the Debt Service Funds from the General Fund. 110 KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL REVENUES BY SOURCE (a) Last ten fiscal years Table 2 (a) Includes general fund only. (b) Largest single element of this figure is $860,121 of investment earnings in an unusual year of the market. (c) Includes a $481,269 loss on investment relating to the Lion Capital Group. 111 Licenses Inter- Charges Fiscal and governmental for Operating Year Taxes Permits Revenue Service Miscellaneous Transfers Total 1979 $1,706,902 $ 24,121 $ 378,736 $249,888 $ - $120,335 $2,479,982 1980 2,060,290 7,695 709,253 466,153 - 132,968 3,376,359 1981 2,281,111 24,083 1,706,477 112,120 754,961 168,140 5,046,892 1982 2,237,755 22,233 2,701,874 110,020 892,206 (b) - 5,964,088 1983 1,928,259 45,444 3,086,448 118,064 472,281 83 5,650,579 1984 1,844,572 34,779 2,542,441 44,194 421,808 121,160 5,008,954 1985 1,868,049 40,386 2,365,386 25,850 454,218 15,000 4,768,889 1986 2,065,440 53,786 2,277,655 83,849 (113,025)(c) 53,660 4 1987 2,188,750 138,151 2,114,283 99,330 451,518 57,090 5,049,122 1988 2,491,065 97,959 2,291,627 100 355,802 114,635 5,351,188 (a) Includes general fund only. (b) Largest single element of this figure is $860,121 of investment earnings in an unusual year of the market. (c) Includes a $481,269 loss on investment relating to the Lion Capital Group. 111 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY TAX LEVIES AND COLLECTIONS Last ten fiscal years Table 3 Percent of Outstanding Delinquent Delinquent Taxes to Percent of Tax Levy $ 166,635 11.7 Percent Delinquent 1,051,093 (b) Total Tax Fiscal Total Current Tax of Levy Tax Total Tax Collections Year Tax Levy Collections Collected Collections Collections to Tax Levy 1979 $1,421,058 $1,328,655 93.5 $ 51,329 $1,379,984 97.1 1980 1,915,340 1,764,316 92.1 48,923 1,813,239 94.7 1981 2,257,590 1,496,037 66.3 41,038 1,537,075 68.1 1982 (c) 2,118,431 2,095,431 98.9 978,969 3,074,400 145.1 1983 1,876,462 1,844,867 98.3 94,231 1,939,098 103.3 1984 1,646,752 1,617,654 98.2 31,487 1,649,141 100.1 1985 1,508,003 1,492,923 99.0 10,733 1,503,656 99.7 1986 2,024,237 1,986,914 98.2 13,504 2,000,418 98.8 1987 2,181,410 2,176,543 99.7 12,207 2,188,750 100.3 1988 1,926,427 1,912,214 99.3 54,625 1,966,839 102.1 Table 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. 112 Percent of Outstanding Delinquent Delinquent Taxes to Taxes Tax Levy $ 166,635 11.7 330,578 (a) 17.3 1,051,093 (b) 46.6 95,124 4.5 32,488 1.7 30,099 1.8 19,366 1.3 43,185 2.1 49,235 2.2 25,610 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. 112 KODIAK ISLAND BOROUGH KODIAK, ALASKA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last ten fiscal years Fiscal Year 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 Waxi'WETTIMPIN 7:14377104 TOW OU Assessed $119,063,900 207,066,200 225,394,400 187,598,046 216,508,832 307,989,403 325,278,582 354,524,678 367,360,196 379,969,521 Estimated Actual Value $119,063,900 207,066,200 225,394,400 187,598,046 216,508,832 307,989,403 325,278,582 354,524,678 367,360,196 379,969,521 Assessed $ 63,658,640 102,859,300 132,268,500 149,474,150 67,606,123 (a) 87,631,001 (b) 69,329,999 52,088,100 (c) 37,499,229 48,795,064 Estimated Actual Value $ 63,658,640 102,859,300 132,268,500 149,474,150 144,886,873 182,466,162 167,476,461 125,607,345 90,373,141 156,628,800 (a) Exempted boat full and true value for $5 and $15 fees. Assessed $182,722,540 309,925,500 357,662,900 337,072,196 284,114,955 395,620,404 394,608,581 406,612,778 404,859,425 428,764,585 (b) Reflects exemptions of boats and inventories. (c) Exempted $5 tax for small watercraft (boats and skiffs under five ton). 113 Estimated $182,722,540 309,925,500 357,662,900 337,072,196 361,395,705 490,455,565 492,755,043 480,132,023 457,733,337 536,598,321 Table 4 Ratio of Total Assessed to Total Estimated Actual Value 100 100 100 100 78.6 80.7 80.1 84.7 88.4 79.9 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS (Per $100 of Assessed Value) Tbale5 1 Last ten Fiscal Years 114 u Road Service Districts Fire Districts KIB City Debt Fiscal General of Service Monashka Service Bayview Women's Service Women's Year Fund Kodiak Funds Total Bay District 1 Road Bay District 1 Bay 1979 7.00 6.00 0.00 13.00 0.00 0.00 0.00 0.00 2.30 0.00 1980 6.98 6.00 0.00 12.98 0.00 0.00 0.00 7.20 1.90 0.00 1981 6.98 2.00 0.00 8.98 0.00 1.00 0.00 0.00 1.95 0.00 1982 7.00 4.00 0.00 11.00 0.00 0.00 0.00 0.00 2.94 0.00 1983 7.00 2.00 0.00 9.00 1.50 0.00 0.00 0.50 1.50 0.50 1984 3.75 1.25 0.00 5.00 2.00 0.00 0.00 0.50 1.50 0.50 1985 3.75 2.00 0.00 5.75 2.00 0.00 0.00 0.50 1.50 0.50 1986 3.75 2.00 0.00 5.75 2.00 0.25 0.00 0.10 1.50 0.90 1987 4.51 2.00 0.00 6.51 2.00 0.25 1.00 0.50 1.50 0.50 1988 4.51 2.00 0.00 6.51 2.00 0.25 1.00 0.50 1.50 0.25 a. The property tax millage for the Kodiak Island Borough has not in ' the past years been broken out to indicate the true millage that would be distributed to the various entities. b. Contributions from the Borough to the School District for the last ten years is calculated to have been as follows: Fiscal Assessed Amount of Millage Year Value Contribution Equivalent 1979 $182,722,540 $ 824,164 4.51 1980 1981 309,925,500 357,662,900 1,023,435 1,066,927 3.30 2.98 1982 337,072,196 676,922 2.01 1983 284,114,955 1,172,544 4.13 1984 395,620,404 1,478,912 3.74 1985 394,608,581 1,377,345 3.49 1986 406,612,778 1,524,460 3.75 1987 404,859,425 2,140,149 5.29 ' 1988 428,764,585 2,343,992 5.47 114 u KODIAK ISLAND BOROUGH KODIAK, ALASKA TEN LARGEST TAXPAYERS Year ended June 30, 1988 115 Percentage Percentage of Total 1988 of Total Assessed Assessed Taxes Taxes TaxRayer Valuation Valuation Levied Levied International Seafoods of Alaska 2.39% $10,267,051 $ 61,489 2.47% Telephone Utilities of the Northland 1.64 7,038,790 33,735 1.35 Sea -Land Services, Inc. 1.51 6,482,244 40,504 1.63 King Crab, Inc. 1.44 6,191,083 35,843 1.44 Alaska Pacific Seafoods 1.42 6,099,090 33,827 1.36 Waldos /O'Kraft & Son, Inc. (Retailers) 1.30 5,594,665 34,586 1.40 All Alaskan Seafoods, Inc. 1.19 5,095,210 25,195 1.01 Brechan Enterprises, Inc. (Construction) 1.01 4,326,770 25,198 1.01 Western Alaska Fisheries 1.00 4,289,392 25,588 1.03 Queen Fisheries, Inc. 0.99 4,249,013 24,823 1.00 Totals 13.89 $59.633.308 $340.788 13.70 115 M =� M M M M M M M M M s= M M M M M KODIAK ISLAND BOROUGH KODIAK, ALASKA RATIO OF NET GENERAL BONDED DEBT Last ten fiscal years FVIMA (a) 1980 population is per U.S. Bureau of Census; others are estimates from the Borough Planning Department based on the "Housing Unit Method." (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. 116 Ratio of Net Net Bonded Bonded Less Debt Debt to Debt Fiscal Assessed Gross Service Net Bonded Assessed per Year Population Value Bonded Debt Fund Debt Value Capita 1979 9,701 $182,722,540 $ 3,930,000 $ 195,000 $ 3,735,000 2.0 385 1980 (a) 9,939 309,925,500 3,725,000 226,462 3,498,538 1.1 352 1981 10,124 357,662,900 15,610,000 1,180,818 14,429,182 4.0 1,425 1982 (b) 12,714 337,092,196 15,390,000 435,438 14,954,562 4.4 1,176 1983 13,079 284,114,955 22,275,000 435,438 21,839,562 7.7 1,670 1984 13,389 395,620,404 30,025,000 6,300,296 23,724,704 6.0 1,772 1985 13,748 394,608,581 25,815,000 7,154,308 18,660,692 4.7 1,357 1986 13,952 406,612,778 30,665,000 7,776,557 22,888,443 5.6 1,641 1987 14,127 404,859,425 25,925,000 7,279,292 18,645,708 4.6 1,320 1988 14,375 428,764,585 22,160,000 7,111,644 15,048,356 3.5 1,047 (a) 1980 population is per U.S. Bureau of Census; others are estimates from the Borough Planning Department based on the "Housing Unit Method." (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. 116 KODIAK ISLAND BOROUGH KODIAK, ALASKA COMPUTATION OF DIRECT AND OVERLAPPING DEBT Year ended June 30, 1988 (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. 117 Percentage Kodiak Applicable Island Net Debt to this Borough's Outstanding Governmental Share of Name of Governments Unit (a) Unit (b) Debt (c) Kodiak Island Borough: General obligation bonds $15,048,356 100% $15,448,356 City of Kodiak: General obligation bonds 1,565,000 64% 1,001,600 Revenue bonds 1,670,000 64% 1,068.804 Total $18.283.356 $17.118.756 (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. 117 1 1 1 1 1 1 1 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH KODIAK, ALASKA COMPUTATION OF LEGAL DEBT MARGIN June 30, 1988 Assessed value Plus exempt property Total Table 9 $ 428,764,585 1,121.834.040 $1.556.598.625 The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions. Debt capacity is ultimately determined by the marketplace. 118 KODIAK ISLAND BOROUGH KODIAK, ALASKA RATIO OF ANNUAL DEBT SERVICE EXPENDIT FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last ten fiscal years Table 10 (a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of term bonds. 119 M r r r r r M M M M r M M M M M M r M Ratio of Debt Service Total Total to General Fiscal Principal Interest Debt General Expenditures Year (a) and Fees Service Expenditures (percent) 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 220,000 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 4,210,000 2,108,539 6,318,539 4,913,578 128.6 1986 5,080,000 1,727,562 6,807,562 4,551,179 149.6 1987 4,750,417 1,787,384 6,537,801 5,123,941 127.6 1988 3,785,834 1,695,468 5,481,302 5,578,069 98.3 (a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of term bonds. 119 M r r r r r M M M M r M M M M M M r M 'M it m m MM MM MM m m m m m r m M KODIAK ISLAND BOROUGH KODIAK, ALASKA DEMOGRAPHIC STATISTICS Last ten fiscal years Fiscal Year Population (a) School Enrollment (b) 1979 9,701 2,143 1980 9,939 2,149 1981 10,124 (d) 2,086 1982 12,714 2,106 1983 13,079 2,189 1984 13,389 2,180 1985 13,748 2,295 1986 13,952 2,285 1987 14,127 2,329 1988 14,375 2,531 Table 11 mDlovment 8.0% 9.7 10.0 12.1 9.7 6.9 9.6 7.7 7.4 6.2 (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. (d) 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. 120 KODIAK ISLAND BOROUGH KODIAK, ALASKA SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS Year ended June 30, 1988 Table 12 (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. 121 M M M M M r M= M M M M M M M M M M M Amount of Name of Official Title Annual Salary Surety Bond (1) Jerome M. Selby Mayor $60,000 (2) See page 4 Assembly members 1,200 (2) Contracted Attorney - - Bryce S. Weeks Finance Director /Treasurer 59,814 $1,000,000 Earl Smith Fire Chief, Service Area One 50,319 - Perry L. Page Data Processing Manager 45,587 - Gaye Vaughan Borough Clerk 46,125 - Linda Freed Director of Planning and Community Development 56,932 - Barbara Templeton Cashier 21,733 50,000 David Crowe Engineer 62,842 - Wayne Haerer Assessor /Appraiser 49,092 - Pam Delys- Baglien Director of Mental Health 67,674 - Robert McFarlane Facilities Coordinator 45,587 - (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. 121 M M M M M r M= M M M M M M M M M M M KODIAK ISLAND BOROUGH KODIAK, ALASKA 1 SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY June 30, 1988 Annual Principal and Interest Requirements* General Obligation School Bonds L 1 122 Calendar Year Principal Interest Total 1988 $ 2,315,000 $ 861,840 ** $ 3,176,840 1989 3,420,000 1,471,702 ** 4,891,702 1990 1,830,000 1,261,126 ** 3,091,126 1991 1,895,000 1,120,682 ** 3,015,682 1992 1,960,000 975,503 ** 2,935,503 1993 1,680,000 824,642 ** 2,504,642 1994 1,735,000 692,962 ** 2,427,962 ' 1995 1996 1,795,000 1,360,000 556,000 ** 417,400 ** 2,351,000 1,777,400 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 ' $22.160.000 $9.047.857 $31.207.857 * Does not include issues that have been fully defeased. ' ** Includes imputed interest of 8% on Variable Rate Demand Bonds, Series 1984B and 1986A. Note: This Table (and subsidiary Tables 13a through 13e 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. L 1 122 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. Bonds numbered 1 through 90 have been retired. Bonds numbered 91 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 1988 and after are callable beginning in 1988 and this call privilege will be exercised. Bonds were issued to extend and improve the school system. Bonds are payable at the Central Bank of Denver, Denver, Colorado. $1.450.000 1112.375 $164.937 $1.727.312 * Maturities on and after August 1, 1988 are callable at par on this and any interest date thereafter. Note: This issue was called in its entirety on August 1, 1988. Table 13a �I 123 Bond Principal Interest Interest Interest Coupon Numbers Due Due Due Year Rate Number Inclusive August 1 February 1 August 1 Total 1988 7.25 27 -28 91 -140 $ 250,000 $ - $ 52,563 $ 302,563 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 $1.450.000 1112.375 $164.937 $1.727.312 * Maturities on and after August 1, 1988 are callable at par on this and any interest date thereafter. Note: This issue was called in its entirety on August 1, 1988. Table 13a �I 123 L KODIAK ISLAND BOROUGH KODIAK, ALASKA Table 13b 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 428 have been retired. Bonds numbered 429 through 2420 bear interest at the rate indicated below. ' Bonds are retired serially in numerical order over a period of 20 years. 332,141 Retirement date is August 1 of each year beginning in 1982. Bonds maturing in 7.45 1990 and after are callable on this date and any interest date thereafter. 310,789 1,251,578 1993 7.60 974 -1109 Bonds were issued to extend and improve the school system. Bonds are payable 1,254,642 at the Rainier Bank and Trust, Seattle, Washington. 7.75 1110 -1258 735,000 261,481 261,481 1,257,962 1995 Bond Principal Interest Interest 233,000 Interest Numbers Due Due Due 8.00 Year Rate Inclusive August 1 February 1 August 1 Total 1988 9.00 429 -521 $ 465,000 $ - $ 395,277 $ 860,277 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 * Maturities on and after August 1, 1990 are callable at par on this or any interest date thereafter. 1 124 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 735,000 261,481 261,481 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 $9.960.000 $2.785.134 $3.180.411 $15.925.545 * Maturities on and after August 1, 1990 are callable at par on this or any interest date thereafter. 1 124 KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL OBLIGATION SCHOOL IMPROVEMENT BONDS, SERIES 1984B Retirement Schedule Table 13c This issue, dated May 1984, consisted initially of nine bonds totaling $9,500,000. Bonds in the amount of $6,750,000 have been retired. Bonds are retired serially in numerical order over a period of six years. Retirement date is quarterly, each as indicated below. 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. * Interest is at a variable rate; calculations made at 8% of the unpaid principal balance. * These are variable rate demand bonds. Number of bonds issued and denominations will vary over the life of the issue. The 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, 1984. 125 Interest Principal Interest Maturity Rate* Quarterly Quarterly Total 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 $2.750.000 11,000 $165.000 561,000 $2.915.000 * Interest is at a variable rate; calculations made at 8% of the unpaid principal balance. * These are variable rate demand bonds. Number of bonds issued and denominations will vary over the life of the issue. The 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, 1984. 125 Table 13d KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL OBLIGATION SCHOOL IMPROVEMENT BONDS, SERIES 1986A Retirement Schedule This issue, dated June 4, 1986, consisted initially of 198 bonds in the amount of $50,000 each, and one bond in the amount of $30,000, totaling $9,930,000. Bonds numbered 1 through 39 have been retired. Bonds numbered 40 through 199 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of ten years. Retirement dates are quarterly beginning on September 1, 1986 and quarterly thereafter. For information on early call of these bonds, please review the ordinance, letter of credit, and prospectus on this issue. 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 and extend various school projects. Bonds are payable at the Metropolitan branch of the Seattle First National Bank, Seattle, Washington. TOTALS * Interest is at a variable rate; calculation made at 8% of the unpaid principal balance. 126 Bond Interest Numbers Principal Maturi Rate* Inclusive Amount Interest Total Sep 1988 Variable 40 -44 $ 250,000 $ 160,000 $ 410,000 Dec 1988 Variable 45 -49 250,000 155,000 405,000 Mar 1989 Variable 50 -54 250,000 150,000 400,000 Jun 1989 Variable 55 -59 250,000 145,000 395,000 Sep 1989 Variable 60 -64 250,000 140,000 390,000 Dec 1989 Variable 65 -69 250,000 135,000 385,000 Mar 1990 Variable 70 -74 250,000 130,000 380,000 Jun 1990 Variable 75 -79 250,000 125,000 375,000 Sep 1990 Variable 80 -84 250,000 120,000 370,000 Dec 1990 Variable 85-89 250,000 115,000 365,000 Mar 1991 Variable 90 -94 250,000 110,000 360,000 Jun 1991 Variable 95 -99 250,000 105,000 355,000 Sep 1991 Variable 100 -104 250,000 100,000 350,000 Dec 1991 Variable 105 -109 250,000 95,000 345,000 Mar 1992 Variable 110 -114 250,000 90,000 340,000 Jun 1992 Variable 115 -119 250,000 85,000 335,000 Sep 1992 Variable 120 -124 250,000 80,000 330,000 Dec 1992 Variable 125 -129 250,000 75,000 325,000 Mar 1993 Variable 130 -134 250,000 70,000 320,000 Jun 1993 Variable 135 -139 250,000 65,000 315,000 Sep 1993 Variable 140 -144 250,000 60,000 310,000 Dec 1993 Variable 145 -149 250,000 55,000 305,000 Mar 1994 Variable 150 -154 250,000 50,000 300,000 Jun 1994 Variable 155 -159 250,000 45,000 295,000 Sep 1994 Variable 160 -164 250,000 40,000 290,000 Dec 1994 Variable 165 -169 250,000 35,000 285,000 Mar 1995 Variable 170 -174 250,000 30,000 280,000 Jun 1995 Variable 175 -179 250,000 25,000 275,000 Sep 1995 Variable 180 -184 250,000 20,000 270,000 Dec 1995 Variable 185 -189 250,000 15,000 265,000 Mar 1996 Variable 190 -194 250,000 10,000 260,000 Jun 1996 Variable 195 -199 250.004 5.000 255.000 TOTALS * Interest is at a variable rate; calculation made at 8% of the unpaid principal balance. 126 r 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 440 have been retired. Bonds numbered 441 through 800 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of twenty 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. Interest Interest Bond Principal Due Interest Numbers Due Year Rate Inclusive August 1 1988 5.50 494 -548 $ 275,000 1989* 5.55 549 -606 290,000 1990 5.60 607 -667 305,000 1991 5.65 668 -732 325,000 1992 5.70 733 -800 340.000 $1.535.000 Interest Interest Due Due Februarx 1 August 1 Total $ - $ 21,511 $ 296,511 17,729 17,729 325,458 27,160 27,160 359,320 10,311 10,311 345,622 $ 64.890 $ 86,401 $1.686.291 * 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. Table 13e I 127 M M M� M�- M M M M! M M M M M M � M M KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Last ten fiscal years Source: 1. From local bankers * Estimated actual value N/A - Not available 1111014- w , Commercial Commercial CONSTRUCTION Residential $ 66,992,335 $109,403,194 $ 2,317,150 77,248,643 103,559,568 Deposits in Fiscal No. of 51,972,410 No. of 129,872,475 Local Year Units Value Units Value Banks (1) 1979 15 $ 518,908 39 $ 9,183,204 $11,304,893 1980 20 354,538 32 1,691,266 12,159,684 1981 40 331,941 55 2,163,650 65,921,937 1982 53 826,596 71 3,208,175 71,801,883 1983 77 7,708,474 136 10,631,463 54,032,065 1984 63 2,965,496 74 5,495,636 59,010,831 1985 62 10,316,833 99 7,928,241 61,598,752 1986 54 3,012,970 118 10,563,802 64,420,672 1987 35 4,256,169 134 5,313,110 78,402,810 1988 42 549,382 91 4,314,003 N/A Source: 1. From local bankers * Estimated actual value N/A - Not available 1111014- w , Commercial Residential Nontaxable $ 66,992,335 $109,403,194 $ 2,317,150 77,248,643 103,559,568 51,735,973 77,980,241 109,408,625 51,972,410 86,107,893 129,872,475 208,695,345 107,487,339 199,913,042 245,623,546 104,233,851 220,001,411 739,960,807 116,411,447 236,302,401 1,053,965,717 115,574,577 258,311,716 1,127,834,040 114,409,875 252,950,321 1,134,524,305 123,053,031 255,417,891 1,159,131,464 128 (a) Prior years include lands designated recreational; 1986 and after represents actual acres of parks. 129 KODIAK ISLAND BOROUGH KODIAK, ALASKA MISCELLANEOUS STATISTICAL DATA Years ended June 30, 1979 through 1988 Date of incorporation - September 30, 1963, Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended, Form of Government - Mayor /Assembly. 1979 1980 1981 1982 Area - square miles 4,900 4,900 4,900 4,900 Miles of improved street 16.48 16.48 16.48 16.48 Miles of sanitary sewers - - - - r Number of water taps - - - - Number of sanitary sewer taps - - - - Building permits: Permits issued 52 52 95 124 Value of buildings (thousands) 9,701.9 2,045.8 2,495.5 4,034.7 Fire protection: ' Number of fire stations - - - - Number of employees - - - - Police protection - none Recreation: Parks - number of acres 740.5 1,500 2,230 2,440 Facilities: Number of playgrounds - - - - Number of swimming pools 1 1 1 1 Education: Number of schools: Elementary 11 11 11 10 Junior high /middle 4 4 4 4 Senior high /middle 5 6 6 6 Vocational technology 1 1 1 1 Number of administrative personnel 163 181 187 178 Number of teachers 141 150 150 150 Number of students 2,143 2,149 2,086 2 Number of municipal employees 21 32 37 39 Elections: ' Number of registered voters 4,778 5,123 5,198 5,883 Number voting in last election 1 1,595 1,613 1,619 Percent of registered voters 34.8 31.1 31.0 27.5 , (a) Prior years include lands designated recreational; 1986 and after represents actual acres of parks. 129 1 1 1 i l 1 1 1 1 1 1 1 1 1 1 1 1 1 f 1983 1984 1985 1986 1987 1988 4 4,900 4,900 4,900 4,900 4,900 4,900 16.48 16.48 17.29 19.53 20.3 21.5 1 3.7 4.2 9.63 15.49 16 309 309 309 410 659 707 170 170 170 327 619 666 213 137 161 172 169 133 18,339.9 8,416.1 17,858.0 12,196.8 9,570.0 4,863.4 - 2 2 2 2 2 - 1 1 1 1 1 3,277 4,099 3,414 220(a) 222 223 4 5 5 14 15 15 1 1 1 1 1 1 10 10 10 10 10 10 4 4 4 4 4 4 6 7 7 7 7 7 1 1 1 1 1 1 179 174 158 159 152 167 152 156 157 154 148 169 2,189 2,180 2,295 2,285 2,329 2,351 46 49 46 49 53 57 5,115 5,200 6,603 6,463 6,559 5,427 1,720 2,079 3,075 2,356 2,094 2,507 33.6 44.0 46.6 36.4 31.9 46.2 130 Table 15