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CAFR FY1994KODIAK ISLAND BOROUGH KODIAK ALASKA 1994 COMPREHENSIVE ANNUAL FINANCIAL REPORT JULY 1, 1993- JUNE 30, 1994 1 KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1994 L TABLE OF CONTENTS 2 INTRODUCTORY SECTION ' Changes in Fund Balance - All Governmental Fund Types and EXHIBIT PAGE ELECTED OFFICIALS ( PHOTOGRAPHS) ........................................................................ ............................... v BOROUGHOFFICIALS ........................................................................ ............................... ............................vii BOARDS AND COMMITTEES ............................................................ ............................... ........................... viii MAP OF KODIAK ISLAND BOROUGH ............................................................................ ............................... x GFOA CERTIFICATE OF ACHIEVEMENT ..................................................................... ............................... xi 1 ORGANIZATIONALCHART ........................................................................................... ............................... xii LETTER OF TRANSMITTAL ......................................................................................... ............................... xiii FINANCIAL SECTION EXHIBIT PAGE INDEPENDENT AUDITOR'S REPORT .......................................................................... ............................... 1 GENERAL PURPOSE FINANCIAL STATEMENTS ' ADDITIONAL INFORMATION COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP i FINANCIAL STATEMENTS AND SCHEDULES GENERAL FUND: Comparative Balance Sheets ....................................................................... ............................A -1 33 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual ..................................................... ............................A -2 34 Schedule of Expenditures and Transfers - Budget and Actual ...................... ............................A -3 36 Combined Balance Sheet - All Fund Types, Account Groups and Discretely PresentedComponent Units .......................................................................... ..............................1 2 Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - All Governmental Fund Types and Discretely Presented Component Unit ........................................................... ..............................2 6 Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual - General Fund, Special Revenue Fund and Debt Service Fund ............................................... ..............................3 Combined Statement of Revenues, Expenses, Transfers and Changes in 8 Retained Earnings - Proprietary Fund Types and Discreetly Presented Component Unit ..............4 11 1 Combined Statement of Cash Flows - Proprietary Fund Types and Discretely Presented Component Unit .............. ..............................5 12 Notes to the Financial Statements ................................................................................... ............................... 13 ' ADDITIONAL INFORMATION COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP i FINANCIAL STATEMENTS AND SCHEDULES GENERAL FUND: Comparative Balance Sheets ....................................................................... ............................A -1 33 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual ..................................................... ............................A -2 34 Schedule of Expenditures and Transfers - Budget and Actual ...................... ............................A -3 36 KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report ' For the Fiscal Year Ended June 30, 1994 TABLE OF CONTENTS (continued) C -1 63 Combining Statement of Revenues, Expenses EXHIBIT PAGE SPECIAL REVENUE FUNDS: C -2 64 ' CombiningBalance Sheet .......................................................................... ............................... B -1 42 Combining Statement of Revenues, Expenditures, Transfers Changes in Fund Balance - Budget and Actual: and Changes in Fund Balance ..................................................................... ............................B -2 44 65 Statement of Revenues, Expenditures, Transfers and Other..................................................................................................... ............................... C-4 66 Changes in Fund Balance - Budget and Actual: CAPITAL PROJECTS FUNDS: Fire and Road Service Districts: Fire: CombiningBalance Sheet ............................................................................. ............................D Combining Statement of Revenues, Expenditures, -1 68 Area1 .......................................................................................... ............................... B -3 46 -2 Women's Bay .............................................................. ............................... Road: •................ B-4 47 -3 MonashkaBay ............................................................................. ............................... B -5 48 District1 ...................................................................................... ............................... B-6 49 District2 ...................................................................................... ..........................:.... B -7 50 Women's Bay .................................................................................. ............................B -8 51 BayView .................................................................................... ............................... B -9 52 Mental Health Center ................................................................. ............................... Mental Health Center - Schedule of Expenditures ............................. ............................... B -10 B -11 53 54 Energy /Coastal Management ........................................................... ............................... B -12 55 DayCare ............................................................................................... LandSales ............................................................................................ ...........................B -13 ...........................B -14 56 57 Buildingsand Grounds ......................................................................... ...........................B -15 58 Woodland Acres Lighting ..................................................................... ...........................B -16 59 Community and Regional Affairs ...................................................... ............................... B -17 60 Oil Spill Cleanup .............................................................................. ............................... B -18 61 DEBT SERVICE FUNDS: CombiningBalance Sheet .......................................................................... ............................... C -1 63 Combining Statement of Revenues, Expenses Transfers, and Changes in Fund Balance ................................................. ............................... C -2 64 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual: Bonds.................................................................................................... ............................... C -3 65 Other..................................................................................................... ............................... C-4 66 CAPITAL PROJECTS FUNDS: CombiningBalance Sheet ............................................................................. ............................D Combining Statement of Revenues, Expenditures, -1 68 Transfers and Changes in Fund Balances .................................................... ............................D -2 70 Schedule of Capital Projects .......................................................................... ............................D -3 72 s ii I �J k 1 1 KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1994 TABLE OF CONTENTS (continued) EXHIBIT PAGE PROPRIETARY FUNDS - ENTERPRISE FUNDS: CombiningBalance Sheet .......................................................................... ............................... E -1 76 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings ........................................................... ............................... E -2 78 Combining Statement of Cash Flows .......................................................... ............................... E -3 79 Sanitary Services: Comparative Balance Sheets .................................................................... ............................... E-4 80 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual .............................................. ............................... E -5 81 Comparative Statements of Cash Flows .................................................... ............................... E-6 82 Water: Comparative Balance Sheets .................................................................... ............................... E -7 83 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual .............................................. ............................... E -8 84 Comparative Statements of Cash Flows ........................ ............................... ............................E -9 85 Sewer: Comparative Balance Sheets .................................................................. ............................... E -10 86 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual ............................................ ............................... E -11 87 Comparative Statements of Cash Flows .................................................. ............................... E -12 88 PROPRIETARY FUNDS - INTERNAL SERVICE FUND Balance .......................................................................................... ............................... F -1 89 Statement of Revenues, Expenses and Changes in inRetained Earnings .............................................................................. ............................... F -2 90 Comparative Statements of Cash Flows .................................................... ............................... F -3 91 AGENCY FUNDS: Combining Statement of Changes in Assets and Liabilities ........................... ............................G -1 93 GENERAL FIXED ASSETS ACCOUNT GROUP: Schedule of Fixed Assets by Source .................... Schedule of General Fixed Assets by Function and Activity .......................... ............................H -2 97 Schedule of Changes in General Fixed Assets by Functionand Activity .................................................................................. ............................H -3 99 lu KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1994 TABLE OF CONTENTS (continued) E)&MIT PAGE GENERAL LONG -TERM DEBT ACCOUNT GROUP: Schedule of General Long -Term Debt ............................................................ ............................I -1 101 ADDITIONAL INFORMATION - BONDED INDEBTEDNESS: Summary of Bonded Debt Service Requirements to Maturity ....................... ............................... J -1 103 General Obligation School Improvement Bonds, 1991 Series A .................. ............................... J -2 104 General Obligation School Refunding Bonds, Series 1989 ............................. ............................J -3 105 General Obligation Bonds, 1994 Series A ................................................... ............................... J-4 106 General Obligation Bonds, 1993 Series A ................................................... ............................... J -5 107 Asbestos Removal Loan Payable ................................................................. ............................... J-6 108 STATISTICAL SECTION IV [l I TABLE PAGE STATISTICAL TABLES: General Governmental Expenditures and Other Uses by Function - Last Ten Fiscal Years .............................................................. ..............................1 109 General Revenues by Source - Last Ten Fiscal Years ....................................... ..............................2 110 Property Tax Levies and Collections - LastTen Fiscal Years .................................................................................... ..............................3 111 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years ................................................................... ..............................4 112 Property Tax Rates - All Overlapping Governments - LastTen Fiscal Years ................................................................................... ..............................5 113 TenLargest Property Taxpayers ..................................................................... ..............................6 114 Ratio of Net General Bonded Debt - Last Ten Fiscal Years ............................. ..............................7 115 Computation of Direct and Overlapping Debt ................................................. ..............................8 116 Computation of Legal Debt Margin ................................................................. ..............................9 117 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures and Transfers - LastTen Fiscal Years ................................................................................... .............................10 118 Demographic Statistics - Last Ten Fiscal Years ............................................ ............................... 11 119 Salaries and Surety Bonds of Principal Officials ............................................. .............................12 120 Property Value, Construction and Bank Deposits - LastTen Fiscal Years ................................................................................... .............................13 121 Miscellaneous Statistical Data - LastTen Fiscal Years ................................................................................... .............................14 122 IV [l I INTRODUCTORY SECTION Annual Report • Kodiak Island Borough, Alaska - ASSEMBLY MEMBERS- To the Honorable Mayor and Members of the Kodiak Island Borough Assembly: In accordance with the provisions of the Kodiak Island Borough Code, there is presented herewith the Comprehensive Annual Financial Report for the year ended June 30, 1994, and the related statements and statistical tables. Respectfully submitted, '4. 4'4- -jo- Karleton G. Short, Finance Director JEROME M. SELBY Mayor of Kodiak Island Borough, 1995 GORDON L. GOULD At Large, 1994 ALAN D. AUSTERMAN At Large, 1995 Deputy Presiding Officer SUZANNE J. HANCOCK At Large, 1996 JOHN BURT At Large, 1996 JACK L. McFARLAND At Large, 1996 Presiding Officer of Assembly MICHAEL R. MILLIGAN At Large, 1994 MARY A. MONROE At Large, 1995 fl 1 Ll 1 it t KODIAK ISLAND BOROUGH BOROUGH OFFICIALS YEAR ENDED JUNE 30, 1994 BOROUGH ASSEMBLY John Burt `96 Michael R Milligan'94 Gordon J. Gould '94 Mary A. Monroe '95 Suzanne J. Hancock'96 Alan Austerman'95 (Deputy Presiding Officer) Jack L. McFarland '96 (Presiding Officer) BOROUGH MAYOR Jerome M. Selby '95 Karleton G. Short ............................................................ ............................... .........................Finance Director/Treasurer Steve Hobgood ................................................................................................... .........Facilities/Engineering Coordinator DonnaSmith ....................................................................................... ............................... ........................Borough Clerk LindaL. Freed ....................................................................................................... ............................... Planning Director PatrickS. Carlson ................................................................................................................ ............................... Assessor PerryL. Page ............................................................................................. ............................... Data Processing Manager MartinWhite ........................................................................ ............................... .........................Mental Health Director EarlA. Smith .......................................................................................... ............................... ...........................Fire Chief Charles E. " Bud" Cassidy ............................................. ............................... .......................Resource Management Officer Jamin, Ebell, Bolger, Gentry ..................................................... ............................... (Contracted Firm) Borough Attorney Edwin Myers ......................................................................................... ............................... .:.. Hospital Administrator Bruce F. Johnson .............................................................................. ............................... Superintendent, School District CherylBolger ................................................................................................ ............................... ................. Accountant BarbaraTempleton ........................................................................... ............................... ..................... Purchasing Agent Vii KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1994 School Board (7) * Alice Knowles Will Walton Pat Tabon Norm Wooten Kyle Shaffer, CG Rep. Jeff Stephan Lane Schmelzenbach, Stud. Rep. Hospital Advisory Board (9) Ben Ardinger Loren Halter Gil Bane Alan Austerman, Assembly Rep. Dr. Lane Reinehart- Linden, Chief of Staff Gretchen Saupe * Betty Springhill Wayne Stevens John Shauk Ed Myers, KIH Staff, ex -officio Mental Health Center Advisory Board 9 Virginia Sargent Rosario Bermisa Katherine Gravino Judy Carstens Laurel Vorachek Mike Milligan, Assembly Rep. Josepruna Rosales Karen Perkins, KAMI rep, ex -officio * Ron Woitel Letitia Raub Guy Snyder, CG rep, ex- officio Martin White, MHC Director, ex -officio Jan Pennington, KIB staff Planning and Zoning Commission (7) Bruce Barrett Shawn "Tuck" Bonney * Jerrol Friend Patricia Szabo Jeff Knauf Renato Asuncion Woodland Acres Street Lighting Service District Advisory Board (3) Bob Hatcher Barbara Heinrichs * Sharon Nault Citizen Board of Equalization (5) * Jim Carmichael Tim Hurley Craig Fanning Will Walton William Roberts Woody Koning, Alternate Donna Smith, KIB staff Parks and Recreation Committee (12) Forrest Blau Barbara Heinrichs Claire Holland, State Rep., ex-officio Ian Fulp, City Rep., ex- officio Kyle Shaffer, School Bd. Rep., ex -officio Suzanne Hancock, Assembly Rep. * David Odell Gloria Wiechmann Melissa Robinson Jane Spicciani Linda Freed, KIB staff 2 vacancies Building Code Board of Appeals/ (Architectural Review Board) (9) Gerald Cloudy John Burt, Assembly Rep. * Woody Koning Ed Mahoney Tom Templeton Eric Ness Kyle Shaffer, School Board Rep. Scott Bonney Betty Walters, KIBSD Steve Hobgood, KIB staff Personnel Advisory Board (5) Craig N. Fanning Katharine Gravino * Dorothy Weeks Christine Jamin, Chairperson Clay Koplin Rachael Miller, KIB staff 1 1 71 I �J Viii t KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1993 Data Processing Steering Committee (9) Ed Myers Bill Oliver Jack McFarland Perry Page * Jerome Selby Karleton Short Jocelyn Zwiefelhofer Martin White One vacancy Monashka Bav Road Service District Fire Protection Area #1 Advisory Board (5) * Scott Arndt Greg Spalinger Charles Lorenson John Shank Bill Swearingin r Bav View Road Service District Advisory Board (5) Dawn Black Colleen Helligoso Jim Schauff Ken Minks * Reed Oswalt Monashka Bav Road Service District 1 1 Emereencv Services Council (5) Tom Barrett, Capt. USCG * Gary Bloomquist Carolyn Floyd Jerome Selby Jack McFarland Services District No. 1 Advisory Board (7) * Scott Arndt Tom Abell Charles Lorenson John Parker Stan Thompson Services District No. 1 Advisory Board (7) (continued) Earl Smith, Jr. Tom Streifel Women's Bav Service District Advisory Board (7) Jean Barber John Burt * David Conrad George Lee Edward Gondek Laurie Madsen Robert Tarrant Kodiak Island Transportation Studv Steering Committee (KITS) John Sullivan Matt Holmstrom Gary Bloomquist Dave Crowe Carolyn Floyd Jerome Selby Jack McFarland, Assembly Rep Airport Advisory Committee (11 Jacque Bunting Dan Dorman Tom Watson Michael Machulsky Lee Robins * Wayne Stevens John Miller, ex officio John Chya, ex- officio John Miller, CG ex -officio Scott Schleifer Rachael Miller, KIB staff Service Area No. 2 Commission (5) * Alice Mac Donough John Parker Richard Holzshu Jon Hartt Reed Oswalt * Indicates chair I ix Advisory Board (5) * Roger Blacket Mark Withrow Jeff Hamer Gregg Razo Mitch Hull 1 1 Emereencv Services Council (5) Tom Barrett, Capt. USCG * Gary Bloomquist Carolyn Floyd Jerome Selby Jack McFarland Services District No. 1 Advisory Board (7) * Scott Arndt Tom Abell Charles Lorenson John Parker Stan Thompson Services District No. 1 Advisory Board (7) (continued) Earl Smith, Jr. Tom Streifel Women's Bav Service District Advisory Board (7) Jean Barber John Burt * David Conrad George Lee Edward Gondek Laurie Madsen Robert Tarrant Kodiak Island Transportation Studv Steering Committee (KITS) John Sullivan Matt Holmstrom Gary Bloomquist Dave Crowe Carolyn Floyd Jerome Selby Jack McFarland, Assembly Rep Airport Advisory Committee (11 Jacque Bunting Dan Dorman Tom Watson Michael Machulsky Lee Robins * Wayne Stevens John Miller, ex officio John Chya, ex- officio John Miller, CG ex -officio Scott Schleifer Rachael Miller, KIB staff Service Area No. 2 Commission (5) * Alice Mac Donough John Parker Richard Holzshu Jon Hartt Reed Oswalt * Indicates chair I ix ARCTIC OCEAN N P ll!Row ,� PRUDHO£ MY x G3� �.(j NOME NORTON SOUK WE AR r cm CIRCLE — -- CANADA FMRSMIKS ALASKA cvtf of Wuslu KODIAK ISLAND IV . k . t( I 1'3EMEL DIWNGHAM BRISTOL MY NORTH PACIFIC OCEAN b 1 s KODIAK a` ISLAND Q BOROUGH 1 t Certificate of Achievement 1 for Excellence In Financial 1 • Reporting Presented to Kodiak Island Borough, Alaska For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1993 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. 11 President &-� Executive Director Kodiak Island Borough Organization Chart I Electorate 1 Assembly I� Hospital Advisory Board (Appointed by Assembly) _1 Service District Advisory Boards __Appointed Citizens Advisory Boards /Commission (Appointed by Woodland Acres Assembly) Hospital Administrator Street Lighting Borough Attorney * Personnel Board * Architectural * par and Recreation * Board of Hospital Staff Equalization * Mental Health B orou h Clerk Center * Economic Development * OCS Advisory Council * Building Code Board of Appeals * KITS Committee Airport Advisory Committee Mayor Service District Advisory Boards (Elected * Monashka Bay Road Service District * Women's Bay Road Service/ Fire District * Service District No. I * Road, Water, Sewer, Fire District No. I * Bayview Road Service District * Service Area No. 2 School Board Superintendent of Schools I School Staffl Planning & General Community Engineering Zoning Administration Development /Facilities Commission Department Department ninted by Finance Data Services Assessing Mental Health enactment Department Department I Center t t t I Q a j a Q o o � e r September 23, 1994 To the Honorable Mayor and Members of the Assembly Kodiak Island Borough Kodiak, Alaska Kodiak IslandBorough The comprehensive annual financial report (CAFR) of the Kodiak Island Borough (Borough), Kodiak, Alaska for the fiscal year ended June 30, 1994, is submitted herewith. This report was prepared by the Borough Finance Department. Responsibility for the accuracy, completeness and fairness of presentation, 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. 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 used by the Borough, and some financial presentations. The financial section includes the report of the independent accountants, combined financial statements, notes to financial statements, and more detailed combining and individual financial statements and schedules. The statistical section includes selected financial and general information generally presented on a ten year comparative basis. 710 MILL BAY ROAD KODIAK, ALASKA 99615 -6340 PHONE (907) 486 -5736 GENERAL INFORMATION The Kodiak Island Borough lies at the western border of the Gulf of Alaska, about 40 miles south of the Kenai Peninsula. About two - thirds of the Borough lies in the Kodiak archipelago. One -third of the Borough is on the Alaska Peninsula across the Shelikof Strait from Kodiak Island. The Shelikof Strait is only 20 miles wide in places. The Borough encompasses 7,130 square miles, making it slightly smaller than the State of Massachusetts. The Borough was incorporated September 30, 1963 as a Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. The Borough is governed by a strong Mayor /Assembly form of government. The Borough Assembly is composed of seven members who are elected at- large. The funds related to the 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 Codification of Governmental Accounting and Financial Reporting Standards Section 2100, "Defining the 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. X111 ECONOMIC CONDITION AND OUTLOOK xiv There were four major projects initiated in 1994. Three of these projects ( Northstar Elementary School construction, Ouzinkie School remodel, and Kodiak Island Hospital remodel) were funded either fully or partially by a $19,200,000 bond issue sold in fiscal year 1994. Northstar Elementary School is an $8,500,000 project, Ouzinkie School remodel is a $1,200,000 project, and the Kodiak Island Hospital remodel is currently budgeted at $9,500,000. These should be the total costs for Northstar Elementary and Ouzinkie School remodel, but the total cost of the hospital remodel will probably be close to $19,000,000. The fourth project, the Kodiak High School Remodel, Phase IV, is a $750,000 project funded by transfers from other funds and other projects. Other capital projects either started or expanded in fiscal year 1994 total $2,087,874. The economic condition of the Kodiak Island Borough remains healthy. The main industries of the Borough are commercial fishing, logging, and tourism. While some segments of the commercial fishing industry have declined, others have grown. Logging has increased dramatically due to cutbacks in logging in the Pacific Northwest. Their decreased production has increased the demand (and price) for our timber. Tourism continues to grow in Kodiak with an increased number of visitors each year. To accommodate this demand, construction of fishing lodges and recreational facilities has increased. Commercial fishing is by far the largest industry in the Kodiak Island Borough. For all of the fisheries combined, the total catch in calendar year 1993 was $93,012,367, compared to $102,621,097 in 1992. In recent years, salmon has accounted for approximately one -third of the total value of the fisheries industry in Kodiak. The 1994 salmon catch in Kodiak was down from last year, with an ex- vessel value of approximately $25.5 million. Last year's (1993) ex- vessel value was $32.9 million. The shellfish (crab) industry continues to decline with a catch of $11.5 million in 1993 compared to $12.2 million in 1992, $27.6 million in 1981, and $47.5 million in 1980. The assessed value of real and personal property of the Kodiak Island Borough rose from $404,013,000 in 1985 to $614,570,795 in 1994, an increase of 52 %. The unemployment rate for 1994 was 9.4 %, compared to 6.0% in 1993 and 5.1% in 1992. Hiring seasonal cannery workers traditionally begins around July 5. The local unemployment rate has fluctuated from 3 to 10% over the last ten years. Based on current Chamber of Commerce projections, the Kodiak Island Borough will continue to grow through the end of the century. This growth will positively impact the Kodiak Island Borough, but it must be realized that the Borough will also have to grow to provide the same level of services to its residents. MAJOR INITIATIVES In preparing the fiscal year 1994 budget, the Kodiak Island Borough identified several major projects to be addressed in fiscal year 1994. All major projects are listed in Exhibit D -3 of the annual report. DEPARTMENT OR ACTIVITY SERVICE EFFORTS AND ACCOMPLISHMENTS The Borough provides a variety of services including education, health, garbage collection and disposal, planning and zoning, public improvements, and general administration. The Borough provides for education through the Kodiak Island Borough School District and has contracted with Lutheran Health Systems Management Company to operate the Kodiak Island Hospital and Care Center. The Borough is responsible for operating the sanitary landfill and provides water and sewer services outside the Kodiak city limits. The Borough has oversight responsibility for four road service districts, two fire protection districts, and one street light service district. Each year the Borough selects a department to highlight for its efforts and accomplishments. For fiscal year 1994, the Clerk's Office has been selected. The Clerk's Office is the direct link between residents and their local Borough Assembly. The Clerk's position is one of the oldest in Alaskan municipal government. The Clerk's responsibilities include safe- keeping the corporate seal and all papers and records of the Borough, attending Assembly meetings, and keeping a record of the proceedings. The Clerk is the historian of the Borough, with the entire recorded history of the Borough in the Clerk's care. The Clerk administers oaths -of -office to newly - elected officials, follows up on actions taken at meetings, writes letters, and drafts ordinances and resolutions. The Clerk attests deeds and other documents such as ordinances, u f] t 1 1 1 fl I � u �l If resolutions, minutes, and contracts by signing and affixing the municipal seal. The Borough Clerk is appointed by the Assembly and, according to ordinance, works directly for the Assembly. The Deputy Clerk serves as a full -time employee in the Clerk's Office performing functions and duties relative to the legislative process. In the Clerk's absence, the Deputy Clerk assumes the powers and duties of the Clerk. The Records Coordinator maintains an indexed file containing municipal ordinances, resolutions, attorney's opinions, and actions of the Assembly and maintains historical files in the archives. The Clerk conducts and supervises regular and special elections for the Borough, including giving notice, preparing ballots, ordering supplies, supervising election boards, and preparing the results for certification. The Clerk also prepares petitions and verifies signatures for initiative, referendum, and recall elections. Candidates for elective municipal office and municipal officers file their Conflict of Interest statements with the Clerk. The Clerk's Office conducted the 1993 municipal elections. The Clerk's Office typically conducts one to three elections per year. This year, the Clerk's Office provided training on election policies and procedures for the village clerks and election board chairs. The Clerk's Office prepares agendas and agenda packets for meetings of the Assembly and gives notice of the meetings to the public. The Clerk attends two regularly scheduled Assembly meetings and two work sessions each month, in addition to special meetings. In fiscal year 1994, the Clerk achieved professional competency in specific requirements in education, experience, and participation and received the Certified Municipal Clerk (CMC) designation. Also, during fiscal year 1994, the Clerk attended the Advanced Academy of Municipal Clerks and the Alaska Municipal League Conference. In fiscal year 1994, the International Institute of Municipal Clerks Conference was held in Anchorage. The Clerk and Deputy Clerk were very involved with hosting this conference. Also, this last fiscal year, the Clerk's office initiated annual meetings with service district boards and advisory boards to educate them on parliamentary procedures, minutes, and the relationship of the various boards to the Borough Assembly. This past year the Clerk's Office worked closely with the Kodiak High School business occupation office supervising high school students from the Educational Opportunity Program (EOP) and the Co-op Work Study Program. These are excellent programs providing high school students the opportunity to work in an office setting, familiarizing them with office procedures. The students were an asset to the Clerk's office and assisted in several projects. The Borough Clerk has many daily contacts with the general public and within our organization. They serve the Assembly, the Mayor, and other administrative departments. Their services and accomplishments this past year help the Borough meet our growing demands. FINANCIAL INFORMATION DISCUSSION OF CONTROLS Management is extremely aware of the importance of internal controls. Although present controls are considered to be highly satisfactory and adequate, they continue to be scrutinized periodically for enhancements. Internal Control Structure The Borough's accounting system depends upon a strong system of internal control. The Borough is concerned with all aspects of internal control for reliable and accurate financial information, as well as safeguarding assets. Duties are segregated as much as possible in a small office, which limits individual control over any one area. Budgetary Controls The 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. Budgetary control is maintained by an annual appropriation system supplemented with an 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 t reserved by the use of encumbrances so that appropriations will not be overspent. =1 increase in property tax revenue is due primarily to increased property value in the Borough of $23,134,322. 1 All new moneys 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 an ordinance by the Assembly. Staff may initiate transfers between line items within a fund. GENERAL GOVERNMENT FUNCTIONS The following chart summarizes general fund revenues for the fiscal year ended June 30, 1994. This chart includes General Fund Revenue only. General Fund Revenue Sources Severance Licenses. taxes permits. fees $769,629 and other 10.3% $457,894 24,069 6% Investments Education 4% and property :,< :•` :'•;. $291,047 Property 3.9% taxes 6,232 $(219.993) $3,921,089 Inter- 52% governmental sanitation $2,063,218 27.5% .vv ;h \ .. v The following schedule summarizes changes from the prior year for general fund revenues: Increase Revenue Sources (Decrease) Over 1993 Property taxes $143,381 Intergovernmental 71,488 Investments and property 1,477 Severance taxes 66,179 Licenses, permits, fees and other 24,069 Property tax is the largest source of revenue for the General Fund of the Kodiak Island Borough. The The increase in intergovernmental revenue is due to an increase in Raw Fish Tax of $238,463. State - shared revenue and municipal assistance declined $167,263 from last year. Severance tax related to commercial fishing was down $74,365 from last year, but severance tax on timber increased $142,601. The following chart illustrates general fund expenditures for the year ended June 30, 1994 by function: General Fund Expenditures Changes in levels of expenditures for major General Fund functions of the Borough over the preceding year are shown in the following tabulation: Conservation Culture and and Over 1993 recreation development Public safety $133,000 $ 390,882 (5,601) Education 4% (47,322) Education $115,695 Culture and recreation (65,586) 3.5% 6,232 $(219.993) Health and sanitation $385,430 .vv ;h \ .. v General 11.5% ¢overnment Public works $2,111,210 $115,043 63% 3.4% Public safety $92,044 2.7% Changes in levels of expenditures for major General Fund functions of the Borough over the preceding year are shown in the following tabulation: fI F1 F u r� t i] Increase (Decrease) Expenditures Over 1993 General government $ (34,632) Public safety (14,058) Public works (5,601) Health and sanitation (47,322) Education (59,026) Culture and recreation (65,586) Conservation and development 6,232 $(219.993) fI F1 F u r� t i] 1 1 1 1 It is the Kodiak Island Borough's goal to control any increase in expenditures. For fiscal year 1994, expenditures decreased 6%. Another goal of the Kodiak Island Borough is to maintain a fund balance in the General Fund of two million dollars. To this end, the Kodiak Island Borough added $340,332 to the fund balance of the General Fund, resulting in a year end balance of $2,375,653. The following table reflects the fund balance of the General Fund at the close of business for the past ten fiscal years: 91,900,000 $1,000.000 i$500,000 1� 1�, so General Fund Balance Last ten fiscal years 1993) the Hospital had an operating loss of $993,527 with non - operating gains of $227,106 that resulted in a deduction from retained earnings of $766,421. The Borough does not have a water plant or sewer treatment facility. Water is purchased from the City of Kodiak and sold to Borough users. These customers are in a service district contiguous to the City. operating profit of $24,970. In fiscal year 1994, depreciation for each water account was $10.00 and $18.43 for each sewer account. Eventually, if the Borough wants to rebuild the water and sewer lines PROPRIETARY OPERATIONS The Kodiak Island Hospital and Care Center contracts management services with the Lutheran Health Systems Management Company. The Borough is ultimately liable for any financial loss. I The Hospital showed an operating loss in fiscal year 1994 of $138,189 but had non- operating gains of $144,010. This means that the Hospital increased their retained earnings by $5,821 by the end of the year. Non-operating gains are State Revenue Sharing of $129,416, interest income of $10,889, and donor - restricted gifts of $3,705. Last year (fiscal year from a funded depreciation account, water and sewer rates will have to be raised approximately $28.00 per month. At this time, it is not politically feasible to raise water and sewer rates by such an amount. At the end of fiscal year 1994, a typical homeowner paid $106.45 for water, sewer, and garbage. Originally, the Borough built all of the water and sewer lines with grants from the State of Alaska. $3,500,000 Operating Income (Loss) Water sz5oo,o00 Sanitary Services szaoo,000 91,900,000 $1,000.000 i$500,000 1� 1�, so General Fund Balance Last ten fiscal years 1993) the Hospital had an operating loss of $993,527 with non - operating gains of $227,106 that resulted in a deduction from retained earnings of $766,421. The Borough does not have a water plant or sewer treatment facility. Water is purchased from the City of Kodiak and sold to Borough users. These customers are in a service district contiguous to the City. operating profit of $24,970. In fiscal year 1994, depreciation for each water account was $10.00 and $18.43 for each sewer account. Eventually, if the Borough wants to rebuild the water and sewer lines PROPRIETARY OPERATIONS The Kodiak Island Hospital and Care Center contracts management services with the Lutheran Health Systems Management Company. The Borough is ultimately liable for any financial loss. I The Hospital showed an operating loss in fiscal year 1994 of $138,189 but had non- operating gains of $144,010. This means that the Hospital increased their retained earnings by $5,821 by the end of the year. Non-operating gains are State Revenue Sharing of $129,416, interest income of $10,889, and donor - restricted gifts of $3,705. Last year (fiscal year from a funded depreciation account, water and sewer rates will have to be raised approximately $28.00 per month. At this time, it is not politically feasible to raise water and sewer rates by such an amount. At the end of fiscal year 1994, a typical homeowner paid $106.45 for water, sewer, and garbage. Originally, the Borough built all of the water and sewer lines with grants from the State of Alaska. I xvii 1985 1 989 1987 1988 1 989 1990 1 991 1992 19e3 19e4 Operating Income (Loss) Water Sewer Sanitary Services Total 1990 <$95,800> <$158,587> <$95,231> <$349,618> 1991 <183,366> <177,001> <54,968> <415,335> 1992 <35,137> <138,007> <256,276> <429,420> 1993 <52,662> <136,839> 5,646 <183,855> 1994 <121,944> <202,760> <38,299> <363,003> I xvii 1985 1 989 1987 1988 1 989 1990 1 991 1992 19e3 19e4 1 FIDUCIARY OPERATIONS Kodiak Island Borough handles all fiduciary activity with the same care and due diligence that we exercise with any of our funds. All amounts due are withheld, collected, accounted for, and remitted promptly. Periodically the State of Alaska informs each participating entity of the Public Employees Retirement System (PERS) as to the employee and employer DEBT ADMINISTRATION Summary of debt principal outstanding at fiscal year end was: General Obligation, 1994 General Obligation, 1993 General obligation, school refunding, 1991 General obligation, school refunding, 1989 Environmental Protection Agency loan $9,985,000 9,215,000 2,015,000 6,700,000 114.581 $28.029.580 contribution rates. Amounts are budgeted, withheld, and remitted accordingly. Also, periodically the actuarial assumptions are revised by the State of Alaska PERS. When such occurrence creates a deficiency, that amount is paid within the period of notification or when a subsequent budget is adopted. The Borough administers all property tax collection for all governmental entities within the Kodiak Island Borough. For service districts within the Borough, the revenue is recognized in the district's particular fund. Property taxes collected for the City of Kodiak are normally remitted in full by November each year. All other fiduciary collection activity (i.e., federal withholding, FICA, insurance, pension fund, etc.) is accounted for and promptly remitted to the agency involved. The State of Alaska Statutes and the Kodiak Island Borough Code do not establish a legal debt margin. The voters of the Kodiak Island Borough ultimately determine the amount of debt that can be outstanding. The Borough has no revenue bonds authorized or issued. The Borough's general obligation bonds are rated as follows: During fiscal year 1994, the Borough sold two bond issues totaling $19,200,000. The first issue, 1993 Series A, was for $9,215,000 and was bank qualified. [i 1 1 1] xviii I Moody's Standard Investors and Service Poors General obligation, 1994 Aaa AAA General obligation, 1993 Aaa AAA General obligation, school refunding, 1991 Aaa AAA General obligation, school refunding, 1989 Aaa AAA During fiscal year 1994, the Borough sold two bond issues totaling $19,200,000. The first issue, 1993 Series A, was for $9,215,000 and was bank qualified. [i 1 1 1] xviii I 1 II u The second issue, the 1994 Series A, was for $9,985,000 and was not bank qualified. In 1970, the State Legislature created the State Reimbursement Program where the State reimburses municipalities for part of the costs of debt service on bonds used for school construction. Of these bonds, $9,700,000, were issued for educational purposes (construction of Northstar Elementary School and Ouzinkie School remodel) and have been approved for reimbursement at 70 %. Net per capita bonded debt is up to $1,560 because of these two new bond issues. For comparison purposes, following is the net per capital bonded debt for the past ten years: General Bonded Debt Per Capita Last ten fiscal years $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 z 1 $200 s_ vi %0 t- o0 a, 9 F N cn Fiscal Year CASH MANAGEMENT Effective cash management is essential to the long- term stability and profitability of any organization. Day - today cash management is considered a priority within the Borough, and we utilize proper monitoring procedures for timely receipt and deposit of all funds. INVESTMENT POLICIES The Borough Treasurer is the central treasurer for all Borough funds. This includes the Borough, School District, Hospital and Mental Health Center. We use a cash pool concept in which all funds are self - balancing. Each fund is a unique entity and has its own cash account which, on occasion, may 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." We deposit all funds daily and all idle funds are invested on the following day. We do recognize that there is frequently some exposure to uninsur and un- collateralized deposits. We have made great strides in minimizing this exposure through increased collateral and selection of banks and brokers with additional insurance. We use a local servicing bank to sweep the total balances to another account on a daily basis. This account is collateralized by U.S. Treasuries at 102% of carrying value. A third party bank holds the collateral. All new investments are purchased on a delivery verses payment system. This means that when the Borough purchases a new instrument, such as a treasury bill or an agency note, our servicing bank pays for the instrument when it is delivered to them. The servicing bank holds all investments in the Borough's name. Management feels that this 'j is the safest way of holding our investments. The Borough investment policy is far more restrictive than that of many governments. The operational parameters are 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 and/or insured. Further, the collateral is to be held by a third party bank. During the past year, the investments of the Borough have fluctuated between $19 and $37 million. Interest rates for our fiscal year started off at 3.0% to 5.7% in early July 1993. At year -end, investments were earning from 3.4% to 6.1% for an average yield of 4.2 %. We closed out the year with investment earnings for all funds in the amount of $1,356,643. RISK MANAGEMENT "Risk management" is a term used to describe those activities practiced by managers to minimize or control exposure to potential losses. Mention the word "risk management" and most people think of insurance, which is the traditional method used to manage risks. Insurance provides financial protection against accidental loss, but cannot prevent losses. However, by managing exposure, we can prevent unexpected losses. During fiscal year 1994, the Borough Finance Department conducted a comprehensive review of our xix J government's exposure in conjunction with the tri- annual insurance request for proposal. The methods used encompassed the following areas: ❖ Risk Identification: What the risks are. ❖ Risk Evaluation: How often a loss is likely to occur and how severe it could be. efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Borough has received a Certificate of Achievement for the last six consecutive years (fiscal years ended 1988 - 1993). We believe our current report continues to conform to the Certificate of Achievement Program requirements, and we are submitting it to the Government Finance Officers Association. ❖ Risk Financing: Paying for losses when they do occur. As a result of this analysis, we have focused on specific risk areas, centralized the purchase of the various required coverages, and more accurately allocated insurance expenditures throughout the respective risk areas. OTHER INFORMATION 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. We have complied with this requirement and the auditor's opinion has been included in this report. The State of Alaska requires single audits per statute and defines these requirements in 2 AAC 45.010. The Borough also complies with the "Federal Single Audit Act of 1984 ". AWARDS GOVERNMENT FINANCE OFFICERS ASSOCIATION CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Kodiak Island Borough for its comprehensive annual financial report for the fiscal year ended June 30, 1993. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and GOVERNMENT FINANCE OFFICERS ASSOCIATION DISTINGUISHED BUDGET I PRESENTATION AWARD The Borough Mayor and Finance personnel have worked hard in recent years to streamline our budget. Each annual document encompasses the good features of the prior years while adding the best of current ideas. We submitted our fiscal years 1991 through 1994 budgets to the GFOA and received the Distinguished Budget Presentation Award for all four years. OTHER AWARDS Citizens of the Kodiak Island Borough are pleased to see that our Mayor, Jerome M. Selby, has been recognized nationally. He appears in the current issue of Who's Who in the West and also Who's Who in the World Acknowledgments 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, �f� 'd. 4� KARLETON G. SHORT DIRECTOR OF FINANCE J r t FINANCIAL SECTION � Deloitte & buft u 1 O Suite 1500 Telephone: (907) 272 -8462 550 West 7th Avenue Facsimile: (907) 264 -3181 Anchorage, Alaska 99501 INDEPENDENT AUDITORS' REPORT The Mayor and Members of the Assembly ' Kodiak Island Borough Kodiak, Alaska We have audited the accompanying general purpose financial statements of the Kodiak Island Borough as of ' June 30, 1994 and for the year then ended, as listed in the foregoing table of contents. These general purpose financial statements are the responsibility of the Borough's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. ' 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 provides a reasonable basis for our opinion. ' In our opinion, such general purpose financial statements present fairly, in all material respects, the financial position of the Kodiak Island Borough as of June 30, 1994, and the results of its operations and its cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund, and account group financial statements and schedules listed in the foregoing table of contents, which are also the responsibility of the management of the Borough, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Borough. Such additional information has been subjected to the auditing procedures applied in our audit of the ' general purpose financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the general purpose financial statements taken as whole. September 23, 1994 oeWmera�c4e ToYMau 1 KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS > IT-4&-� JUNE 30, 1994 WITH COMPARATIVE TOTALS FO 1993 t — Proprietary ASSETS CURRENT ASSETS: Equity in central treasury Temporary investments Other cash and cash equivalents Receivables: State of Alaska Federal government Property taxes, net of allowance of $15,828 Land sales contacts, due within one year Other receivables, net Due from other fiords Inventories Prepaid expenses Assets whose use is limited: Under malpractice funding arrangement - held by trustee By donor for specific purpose Designated for deferred compensation plan participants Equity in central treasury Temporary investments Land sales contracts receivable, due after one year Amount available to service long -term debt in Debt Service fund Amount to be provided to service long -tern debt Fixed assets in service Accumulated depreciation Construction work -in- progress TOTAL ASSETS S 7,167,257 S 3,682,418 S 4,366,825 S 24,406,759 S 17,111,280 S 572,324 The accompanying notes are an integral part of these combined financial statements. boo? k n t 2 Governmental Fund Types Fund Type Special Debt Capital Internal General Revenue Service Projects Enterprise Service S 25,471 S 687,416 S 257,069 S 992,237 S 282,612 S 7,786 6,798,485 1,058,155 3,676,440 21,961,894 - - 38,623 122,433 56,283 - - - - 815,472 - 161,143 - - - 289,000 - - - 143,535 404,372 32,991 190,873 311,341 - 308,500 400,325 390,000 240,000 - 241 - - - 126,828 - - 500,000 - 812,301 - - - - - - 18,932,942 699,245 - - (3,282,443) (134,707) S 7,167,257 S 3,682,418 S 4,366,825 S 24,406,759 S 17,111,280 S 572,324 The accompanying notes are an integral part of these combined financial statements. boo? k n t 2 EXHIBIT 1 Fiduciary Totals Fund Type Account Groups Primary Component Units Totals Agency General General Long- Government School (Memorandum Only) Fund Type Fixed Assets Tenn Debt ( Memorandum Only District Hospital 1994 1993 S S S - S 2,252,591 S - S 724,126 S 2,976,717 S 1,642,787 - - 33,494,974 - - 33,494,974 17,759,717 - - 190,946 3,578 194,524 155,184 - 217,339 1,059,571 - 1,276,910 818,715 - - 815,472 24,442 - 839,914 231,145 - - - 161,143 - - 161,143 140,963 289,000 - - 289,000 208,341 - - 1,083,112 6,629 2,130,361 3,220,102 3,237,441 - - - 1,338,825 4,952,642 - 6,291,467 5,676,303 - - - - 179,819 218,818 398,637 379,220 - 241 - 122,813 123,054 212,496 _ _ - 173,786 173,786 440,812 - - - 1,109 1,109 17,182 995,306 - 995,306 - 123,581 1,118,887 1,027,314 - 126,828 - - 126,828 256 - 500,000 - - 500,000 1,008,812 812,301 - - 812,301 1,180,598 4,366,825 4,366,825 - - 4,366,825 6,072,461 - 24,000,189 24,000,189 - - 24,000,189 4,862,412 78,146,673 - 97,778,860 2,990,793 7,217,471 107,987,124 106,454,573 - - (3,417,150) - (4,167,570) (7,584,720) (6,637,918) 6,348,878 - 6,348,878 - - 6,348,878 1,831,321 S 995,306 S 84,495,551 S 28,367,014 $ 171,164,734 S 9,404,842 $ 6,548,073 S 187,117,649 $ 146,720,135 continued 3 KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 Proprietary Governmental Fund Types Fund Type Special Debt Capital Internal General Revenue Service Projects Enterprise Service LIABILITIES. FUND EOUIIIES AND OTHER CREDITS LIABILITIES: Accounts payable S 48,715 S 241,394 S - S 672,897 S 249,750 S 29,580 Retainages payable - - 210,427 - - Accrued compensation - - - 15,353 - Payroll taxes and employee benefits 22,842 20,300 - - - Other accrued liabilities 3,685 - - - - Current portion of capital lease obligation - - _ _ _ Customer deposits - 6,644 - - 18,900 Deferred and unrealized revenues - 1,101,302 - 92,958 - - Deferred compensation - - - - _ _ �( Due to other funds 4,716,362 293,500 - 390,000 240,000 - Due to City of Kodiak - - - - 10,010 Due to student organizations - - - _ Accrued landfill closure and postclosure costs - - - 281,449 - Capital lease obligation - - - - _ _ Accrued annual leave - - General obligation bonds payable - - Environmental Protection Agency loan - - - _ _ Total liabilities 4,791,604 1,663,140 1,366,282 815,462 29,580 FUND EQUITIES AND OTHER CREDITS: Contributions in aid of construction - - - - 15,310,877 617,382 Investment in general fixed assets - - _ _ _ Retained earnings: T{ Ci Ord (LVUL' - - - - Unreserved - - - - _ Fuel balance: Reserved: Encumbrances - - - 3,479,129 Fuel inventory - - - - _ PL-874 - - _ Prepaid expenses - Unreserved: - _ - _ Designated for subsequent years expenditures - - 4,366,825 19,561,348 - Undesignated 2,375,653 2,019,278 - - 984,941 (74,638) Total fund equities and other credits 2,375,653 2,019,278 4,366,825 23,040,477 16,295,818 542,744 , TOTAL LIABILITIES, FUND EQUITIES AND OTHER CREDITS S 7,167,257 S 3,682,418 $ 4,366,825 S 24,406,759 $ 17,111,280 S 572,324 The accompanying notes are an integral part of these combined financial statements. EXHIBIT 1, continued Fiduciary Totals Fund Type Account Groups Primary Component Units Totals Agency General General Long- Government School (Memorandum Only) Fund Type Fixed Assets Term Debt ( Memorandum Only District Hospital 1994 1993 $ - $ S - S 1,242,336 S 122,306 S 183,907 $ 1,548,549 $ 1,432,983 - - 210,427 - - 210,427 44,154 - - 15,353 927,660 440,514 1,383,527 1,314,009 - - 43,142 1,103,782 - 1,146,924 1,128,718 _ _ 3,685 - 242,353 246,038 405,001 - - 133,999 133,999 101,406 - 25,544 - - 25,544 31,612 - - 1,194,260 4,666 - 1,198,926 1,634,110 995,306 - 995,306 - 123,581 1,118,887 73,616 - - 5,639,862 651,605 - 6,291,467 6,630,001 - - 10,010 - 10,010 40,300 - - - 136,007 136,007 140,104 - - 281,449 - - 281,449 - _ _ _ _ - 135,510 135,510 277,395 - - 233,266 233,266 - - 233,266 225,292 - - 27,915,000 27,915,000 - 27,915,000 10,470,000 - - 218,748 218,748 - - 218,748 239,581 995,306 - 28,367,014 38,028,388 2,946,026 1,259,864 42,234,278 24,188,282 - - - 15,928,259 - 3,688,648 19,616,907 19,351,346 - 84,495,551 84,495,551 2,990,793 - 87,486,344 82,463,091 _ _ _ - 1,109 1,109 17,182 - - - - 1,598,452 1,598,452 2,771,093 - - 3,479,129 137,897 - 3,617,026 1,894,346 - - - 155,544 - 155,544 157,564 - - 1,232,041 - 1,232,041 1,507,336 - - - - 37,897 - 23,928,173 1,187,381 - 25,115,554 9,961,696 - 5,305,234 755,160 - 6,060,394 4,370,302 - 84,495,551 133,136,346 6,458,816 5,288,209 144,883,371 122,531,853 S 995,306 S 84,495,551 S 28,367,014 S 171,164,734 S 9,404,842 $ 6,548,073 $ 187,117,649 $ 146,720,135 5 The accompanying notes are an integral part of these combined financial statements. Cad J �I i KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS, AND CHANGES IN FUND BALANCE ALL GOVERNMENT FUND TYPES AND DISCRETELY PRESENTED COMPONENT UNIT YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 Special Debt General Revenue Service Revenues: i € Property taxes S 3,921,089 $ 516,124 S - � Intergovernmental: State sources 2,054,805 997,572 Federal sources 8,413 5,534 Land sale proceeds - 506,938 - Severance taxes 769,629 - Licenses, permits, fees and other local revenues 457,894 697,533 Investments and property 291,047 349,663 182,078 r In -kind services - - _ Total revenues 7,502,877 3,073,364 182,078 Expenditures Current: Borough assembly 147,423 - - ` Mayor's department 185,593 - - Clerk's department 239,279 - - Legal services 220,847 - - Finance department 607,632 - - Data services Assessment department 287,405 - - Engineering facilities department 115,043 - - Community development department 390,882 57,150 Building inspector 82,138 - - x' Economic development 60,914 - - General administration 362,117 868,497 - Emergency preparedness 9,906 - Educational support 115,695 - - Health and sanitation 385,430 1,888,559 - Culture and recreation 133,000 - - Oil spill cleanup - 34,637 Capital outlay: Schools _ _ Service district maintenance 133,554 - General - 12,030 - Debt service: Principal - 1,775,833 Interest - 633,301 Fiscal agent fees - 2,373 Other - 54,496 Total expenditures 3,343,304 2,994,427 2,466,003 € Excess (deficiency) of revenue over (under) expenditures 4,159,573 78,937 (2,283,925) f i Other financing sources (uses): Transfer from component unit - - 2,075,565 4r Operating transfers in 4,759 296,030 13,765 Bond proceeds - - 169,748 Transfer to component unit (3,200,000) ,�- Operating transfers out (624,000) (309,635) (1,680,789) Net other financing sources (uses) (3,819,241) (13,605) 578,289 ° Excess (deficiency) of revenues and other financing s sources over expenditures and other financing uses 340,332 65,332 (1,705,636) Fund balance at beginning of year 2,035,321 1,953,946 6,072,461 Adjustments to reserve for fuel inventory - - Fund balances at end of year S 2,375,653 S 2,019,278 S 4,366,825 The accompanying notes are an integral part of these combined financial statements. Cad J �I i J 1 t EXHIBIT 2 1 Totals Component - - 147,423 152,022 Primary Unit Totals - Reporting Entity Capital Government School (Memorandum Only) Projects ( Memorandum Only District 1994 1993 S - S 4,437,213 S - S 4,437,213 S 4,227,151 525,753 3,578,130 15,452,184 19,030,314 19,811,221 2,448,030 2,461,977 3,832,397 6,294,374 4,996,506 - 506,938 - 506,938 423,911 - 769,629 287,405 769,629 703,450 106,060 1,261,487 - 1,261,487 1,414,846 493,208 1,315,996 298,804 1,614,800 1,111,593 428,849 - 539,311 539,311 685,610 3,573,051 14,331,370 20,122,696 34,454,066 33,374,288 1 147,423 - 147,423 152,022 185,593 185,593 168,417 239,279 239,279 216,059 - 220,847 - 220,847 271,495 - 607,632 - 607,632 386,552 - 278,662 287,405 287,405 248,819 115,043 115,043 120,645 448,032 448,032 428,849 82,138 82,138 72,550 60,914 60,914 38,896 1,230,614 1,230,614 1,487,532 - 9,906 - 9,906 33,552 115,695 20,877,670 20,993,365 19,842,853 2,273,989 2,273,989 2,108,457 133,000 133,000 198,586 - 34,637 34,637 109,158 5,147,579 5,147,579 5,147,579 1,963,049 133,554 133,554 202,856 958,335 970,365 970,365 1,386,605 - 1,775,833 - 1,775,833 1,745,833 633,301 633,301 734,515 2,373 2,373 1,842 54,496 - 54,496 6,105,914 (2,532,863) 14,909,648 20,877,670 35,787,318 32,197,804 (754,974) (1,333,252) 1,176,484 (578,278) 2,161,870 2,075,565 2,476,424 - 3,200,000 2,075,565 5,676,424 2,473,713 6,779,538 18,767,629 18,937,377 18,937,377 - (3,200,000) - (3,200,000) (3,220,460) (112,000) (2,726,424) (2,075,565) (4,801,989) (6,053,251) 20,817,499 17,562,942 1,124,435 18,687,377 (20,460) 18,284,636 16,984,664 369,461 17,354,125 1,156,024 4,755,841 14,817,569 3,111,571 17,929,140 16,765,808 - - (13,009) (13,009) 7,308 S 23,040,477 S 31,802,233 S 3,468,023 S 35,270,256 S 17,929,140 1 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND, SPECIAL REVENUE FUND AND DEBT SERVICE FUND YEAR ENDED JUNE 30, 1994 General Fund Variance- Favorable Budget Actual (Unfavorable) Revenues: Property taxes $ 3,995,310 $ 3,921,089 $ (74,221) Intergovernmental: 147,423 State sources 2,071,700 Federal sources 6,300 Land sale proceeds - Severance taxes 814,700 Licenses, permits, fees and other local revenues 146,700 Investments and property 250,000 Total revenues Expenditures Current: Borough assembly Mayor's department Clerk's department Legal services Finance department Assessment department Engineering facilities department Community development department Building inspector Economic development General administration Emergency preparedness Educational support Health and sanitation Culture and recreation Capital outlay: Service district maintenance General Debt service: Principal Interest Fiscal agent fees Other Total expenditures Excess (deficiency) of revenue over (under) expenditures Other financing sources (uses): Transfers from component unit Operating transfers in Bond proceeds Transfers to component unit Operating transfers out Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balance at beginning of year Fund balances at end of year 7,284,710 2,054,805 8,413 769,629 457,894 291,047 7,502,877 147,734 147,423 311 185,720 185,593 127 244,542 239,279 5,263 223,278 220,847 2,431 633,410 607,632 25,778 317,060 287,405 29,655 160,176 115,043 45,133 404,700 390,882 13,818 81,850 82,138 (288) 72,000 60,914 11,086 369,850 362,117 7,733 18,200 9,906 8,294 126,000 115,695 10,305 442,450 385,430 57,020 133,000 133,000 - 3,559,970 3,724,740 3,343,304 (16,895) 2,113 (45,071) 311,194 41,047 218,167 f! 1 1 1 216,666 4,159,573 434,833 t 4,759 4,759 (3,200,000) (3,200,000) - (624,000) (624,000) - (3,824,000) (3,819,241) 4,759 $ (99,260) The accompanying notes are an integral part of these combined financial statements. 8 340,332 2,035,321 $ 2,375,653 $ 439,592 1 1 n EXHIBIT 3 Special Revenue Funds Debt Service Funds az ce_ Favorable 57,950 ar ce- Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 476,850 $ 514,856 $ 38,006 $ - $ - $ - 1,009,222 997,572 (11,650) - - - 5,500 5,534 34 - - - 423,800 506,938 83,138 - - - 786,500 697,533 (88,967) 158,066 368,640 349,663 (18,977) 160,000 182,078 22,078 3,070,512 3,072,096 1,584 160,000 182,078 22,078 57,950 57,150 800 1,326,702 868,497 458,205 - - - 2 1,888,559 192,501 - - - 291,620 133,554 158,066 27,330 12,030 15,300 - - - 1,775,840 1,775,833 7 640,000 633,301 6,699 5,000 2,373 2,627 - - - 296,700 54,496 242,204 3,784,662 2,959,790 824,872 2,717,540 2,466,003 251,537 (714,150) 112,306 826,456 (2,557,540) (2,283,925) 273,615 - - - 2,070,000 2,075,565 5,565 295,000 296,030 1,030 9,000 13,765 4,765 - - - - 169,748 169,748 (304,870) (309,635) (4,765) (1,675,000) (1,680,789) (5 (9,870) (13,605) (3,735) 404,000 578,289 174,289 $ (724,020) 98,701 $ 822,721 $ (2,153,540) (1,705,636) $ 447,904 1,924,649 6,072,461 $ 2,023,350 $ 4,366,825 continued KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND, SPECIAL REVENUE FUND AND DEBT SERVICE FUND YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 EXHIBIT 3- continued I Revenues: Property taxes Intergovernmental: State sources Federal sources Land sale proceeds Severance taxes Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures Current: Borough assembly: Mayor's department: Clerk's department: Legal services: Finance department: Assessment department: Engineering facilities department: Community development department: Building inspector: Economic development: General administration: Emergency preparedness: Educational support: Health and sanitation: Culture and recreation: Capital outlay: Service district maintenance General Debt service: Principal Interest Fiscal agent fees Other Total expenditures Excess (deficiency) of revenue over (under) expenditures Other financing sources (uses): Transfer from component unit Operating transfers in Bond proceeds Transfers to component unit Operating transfers out Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balance at beginning of year Fund balances at end of year Totals (Memorandum Only) variance- Favorable Budget Actual (Unfavorable) 4,472,160 4,435,945 (36,215) 3,080,922 11,800 423,800 814,700 933,200 778,640 3,052,377 13,947 506,938 769,629 1,155,427 822,788 10,515,222 10,757,051 (28,545) 2,147 83,138 (45,071) 222,227 44,148 241,829 147,734 147,423 311 185,720 185,593 127 244,542 239,279 5,263 223,278 220,847 2,431 633,410 607,632 25,778 317,060 287,405 29,655 160,176 115,043 45,133 462,650 448,032 14,618 81,850 82,138 (288) 72,000 60,914 11,086 1,696,552 1,230,614 465,938 18,200 9,906 8,294 126,000 115,695 10,305 2,523,510 2,273,989 249,521 133,000 133,000 - 291,620 133,554 158,066 27,330 12,030 15,300 t t 1 1 1 1 1 t 1,775,840 640,000 1,775,833 633,301 7 6,699 5,000 2,373 2,627 296,700 54,496 242,204 10,062,172 8,769,097 1,293,075 453,050 1,987,954 1,534,904 2,070,000 304,000 (3,200,000) (2,603,870) (3,429,870) $ (2,976,820) The accompanying notes are an integral part of these combined financial statements. 10 2,075,565 314,554 169,748 (3,200,000) (2,614,424) (3,254,557) (1,266,603) 10,032,431 $ 8,765,828 5,565 10,554 169,748 (10,554) 175,313 1,710,217 1 1 1 DRAFT 12 X04 94.XL811 FOR WSCUSS/ON PURPOSES ONLY/ KODIAK ISLAND BOROUGH EXH BIT 4 COMBINED STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPES AND DISCRETELY PRESENTED COMPONENT UNIT YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 19_93_ Totals Totals Reporting Entity Primary Component (Memmandnm only) Internal Government Unit Enterprise Service (Memmandam only) Hospital 1994 1993 Operating revenues: Water des $ 424,457 $ $ 424,457 $ $ 424,457 $ 386,666 Sewer service charges 525,345 525,345 525,345 429,760 Refire collection 1,193,712 1,193,712 1,193,712 1,269,525 Sanitary services fees 434,098 434,098 434,098 380,195 Patient and resident revenues - - 8,709,759 8,709,759 7,838,777 Installation charges 852 852 - 852 2,154 Charge for services - 244,755 244,755 - 244,755 - Other 27,222 30,088 57,310 309,895 367,205 438,523 2,605,686 274,843 2,880,529 9,019,654 11,900,183 10,745,600 Operating expenses: Personnel services 337,031 372,898 709,929 5,342,975 6,052,904 5,562,607 Waste collection 1,050,821 - 1,050,821 - 1,050,821 1,062,774 Purchased water and sewer treatment 721 ,741 - 721,741 - 721,741 589,513 Contracted services 48,542 27,773 76,315 732,972 809,287 994,065 Repairs and maintenance 91,602 134,707 226,309 271,951 498,260 373,086 Landfill closure and postclosure costs 28,454 - 28,454 - 28,454 - Depreciation , 387,973 � . J 1,761 399 734 i 440,904 840,638 814,029 Professional fees L -% l (� k._! =-^ _ - - -- 296,313 296,313 264,183 Bad debt v c. 370,789 370,789 397,636 Supplies c; ^a! 1,440 1,440 890,562 892,002 816,286 Interest 1 52,342 52,342 31,384 83,726 39,218 General administrative 153,104 - 153,104 153,104 93,826 Other 159,399 159,399 779,993 939,392 915,759 Allocated to projects (11,418) (11,418) - (11,418) - 2,968,689 599,481 3,568,170 9,157,843 12,726,013 11,922,982 Operating loss (363,003) (324,638) (687,641) (138,189) (825,830) (1,177,382) Other income: Interest income 23,364 23,364 10,889 34,253 79,515 State revenue sharing - - 129,416 129,416 113,866 Donor restricted gifts - 3,705 3,705 29,992 23,364 23,364 144,010 167,374 223,373 Loss before transfers and cumulative effect of adoption of GASB 18 (339,639) (324,638) (664,277) 5,821 (658,456) (954,009) Operating transfers in 250,000 250,000 - 250,000 20,460 Loss before cumulative effect ofadoption of GASB 18 (339,639) (74,638) (414,277) 5,821 (408,456) (933,549) Cumulative effect of adoption of GASB 18 (252,995) (252,995) - (252,995) Net loss (591634) (74,638) (667,272) 5,821 (661,451) (933,549) Amortization of contributions in aid of construction 383,040 383,040 - 383,040 359,101 Increase (decrease) in retained earnings (209,594) (74,638) (284,232) 5,821 (278,411) (574,448) Retained earnings at begm=g ofyear 1,194,535 1,194,535 1,593,740 2,788,275 3,362,723 Retained earnings at end ofyear $ 984,941 $ (74,638) $ 910,303 $ 1,599,561 $ 2,509,864 $ 2,788,275 The accompanying notes are an integral part of these combined financial statements M a KODIAK ISLAND BOROUGH COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES AND DISCRETELY PRESENTED COMPONENT UNIT YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 EXHIBIT 5 Totals Totals Reporting Primary Component Entity Internal Government Unit (Memorandum Only) Enterprise Service ( Memorandum Only Hospital 1994 1993 Operating income (loss) S (363,003) S (324,638) S (687,641) S (138,189) S (825,830) S (1,177,382) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 387,9-74_._. 134,707 522,681 440,904 _ ` , 963,585 814,029 Provision for uncollectible accounts Provision for landfill closure and postclosure costs - 28 ,454 28,454 - - 370,789 - 370,789 28,454 397,636 - (Gain) loss on sale of assets 2,690 2,690 2,690 (2,686) Changes in assets and liabilities: Accounts receivable: Customers and patients (71,594) - (71,594) (197,318) (268,912) (493,776) Other - - - (75,992) (75,992) (144,112) Prepaid expenses 51,786 51,786 (32,135) Inventories, at cost - - - (14,001) (14,001) 5,061 Due tolfrom other funds (9,000) - (9,000) - (9,000) 74,000 Other assets - (69,263) Accounts payable 91,552 29,580 121,132 (117,454) 3,678 84,297 Customer deposits (9,265) - (9,265) (9,265) 4,216 Accrued expenses 33,900 33,900 16,934 Due to the City of Kodiak (30,290) (30,290) - (30,290) 15,820 Due to deferred compensation plan participants 49,965 49,965 73.616 Deferred revenue (121,290) (121,290) - (121,290) 121,290 Other accrued liabilities (14,326) - (14,326) 20,000 5,674 183,799 Total adjustments 254,905 164,287 419,192 562,579 981,771 1,048,726 Net cash used for operating activities (108,098) (160,351) (268,449) 424,390 155,941 (128,656) Cash flows from noncapital financing activities: State of Alaska, Revenue Sharing payments received Operating transfer in - - - 250,000 - 250,000 129,416 - 129,416 250,000 134,326 - Net cash provided by noncapital financing activities 250,000 250,000 250,000 134,326 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (60,899) (81,863) (142,762) (272,157) (414,919) (680,541) Proceeds from sale of equipment 7,972 7,972 7,972 12,625 Principal payments made on capital lease - - (131,292) (131,292) (113,561) Receipt of gifts restricted by donor for capital purchases 31,220 31,220 3,705 34,925 631,146 Net cash used for capital and related financing activities (21,707) (81,863) (103,570) (399,744) (503,314) (150,331) Cash flows from investing activities: Change in assets whose use is limited: Under malpractice funding arrangement 267,026 267,026 184,087 By donor for specific purpose - - - 16,073 16,073 (7,131) Designated for deferred compensation plan benefits - - - (49,965) (49,965) (73,616) Interest and dividends on investments 23,364 23,364 10,889 34,253 81,146 Net cash provided by (used for) investing activities 23,364 23,364 244,023 267,387 184,486 Net change in cash and cash equivalents (106,441) - (106,441) 398,085 291,644 39,825 Cash and cash equivalents at beginning ofyear Cash and cash equivalents at end of 1,015,881 S 909,440 S 7,786 7,786 1,023,667 S 917,226 329,619 727,704 1,353,286 1,305,675 year $ S 1,644,930 S 1,345,500 Cash and cash equivalents consist of equity ity in central treasury and temporary investments including those under the caption, "Assets whose use is limited," on the balance sheet The integral accompanying notes are an part of these combined financial statements. 12 1 I 1� F_ I 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The Kodiak Island Borough (Borough) was organized to perform the municipal duties allowed by Alaska Statutes and as directed by its residents. As required by generally accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Each discretely presented component unit is reported in a separate column in the combined financial statements to emphasize it is legally separate from the government. The Borough reviewed its relationship with other organizations and determined that the following two organizations are component units. 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 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. Complete financial statements for each of the individual component units may be obtained at the entity's administrative offices. Kodiak Island Borough School District 722 Mill Bay Road Kodiak, Alaska 99615 Kodiak Island Hospital and Care Center 1915 East Rezanof Drive Kodiak, Alaska 99615 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 cash flows in conformity with generally accepted accounting principles. Nor are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of these data. Certain 1993 balances (memorandum only) have been reclassified to conform to the current year presentation. B. Measurement Focus. Basis of Accounting and Basis of Presentation Kodiak Island Hospital and Care Center: The Borough owns the Kodiak Island Hospital and Care Center (Hospital) and related furnishings. The Borough has contracted the Hospital's operating activities to the Lutheran Health Systems Management Company, a North Dakota company. 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 accounts of the government are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self - balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance- related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. 1 13 1 The government has the following fund types and account groups: The debt service fund accounts for the servicing of general long -term debt not being financed by proprietary or nonexpendable trust funds. Governmental funds are used to account for the government's general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available "). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The government considers all revenues available if they are collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long -term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes, franchise taxes, licenses, interest and special assessments are susceptible to accrual. Other receipts and taxes become measurable and available when cash is received by the government and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure - driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirement shave been met. Governmental funds include the following fund types: The general fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The special revenue funds account for revenue sources that are legally restricted to expenditure for specific purposes (not including expendable trusts or major capital projects.) 14 The capital projects funds account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary or nonexpendable trust funds. Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The government applies all applicable FASB pronouncements in accounting and reporting for its proprietary operations. Proprietary funds include the following fund types: Enterprise funds are used to account for those operations that are financed and operated in a manner similar to private business or where the board has decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability. The Internal service fund accounts for operations that provide services to other departments or agencies of the government, on a cost - reimbursement basis. Fiduciary funds account for assets held by the government in a trustee capacity or as an agent on behalf of others. The agency fund is custodial in nature and does not present results of operations or have a measurement focus. Agency funds are accounted for using the modified accrual basis of accounting. This fund is used to account for assets that the government holds for others in an agency capacity. Account Groups The general fixed assets account group is used to account for fixed assets not accounted for in proprietary or trust funds. The general long- term debt account group is used to account for general long -term debt and certain other liabilities that are not specific liabilities of proprietary or trust funds. [--, 1 1 1 F1 F J r 1 1 1 a 1 1 r 1 1 fl 1 1 1 t Summarized below are the major sources of revenue and the applicable recognition policies: Property Taxes Property taxes are based on the assessed value of taxable property as of January I. Pursuant to Alaska Statute 29.53.170, the Borough establishes the mill rate on or before June 15. Tax bills are then mailed on or before July 1st. Taxes are due when billed and generally become delinquent on or after October 15th. The Borough code also provides for split payments. If a taxpayer avails himself of this provision then one half must be paid on or before August 15th and the second half then becomes due on or before November 15th (in lieu of October 15th). Borough property tax revenues are recognized in the fiscal year in which they become measurable and available, which is generally the year following the year the tax bills are mailed. All taxes are delinquent on November 16th and a tax foreclosure process may commence as outlined in Alaska Statutes Title 29. Briefly this entails the petition for Judgment of Foreclosure signed by the District Court Judge and the publication of all delinquent taxes in the local newspaper for four consecutive weeks. When copies of these actions are filed with the courts, delinquent properties have been effectively liened upon. Severance Taxes Severance taxes are based on the amount and value of natural resources severed from the environment. Types of resources taxed include seafood, gravel and mineral resources, and timber. Severance tax returns are sent to the appropriate companies (as determined by the Borough assessor), and are returned to the Borough Finance Department. The returns are filed quarterly, and are due by the end of the month following the quarter's end. Borough severance tax revenues are recognized in the fiscal year in which they become measurable and available, generally when the return is filed and payment is received. To ensure accuracy of amounts of fish and other seafood caught, the Borough compares the amount of catch reported on the severance tax returns to amounts reported to the State of Alaska Department of Revenues and the State of Alaska Department of Fish & Game. For rock, gravel, and timber, the assessing office periodically does a site review of the 15 miningilogging area to determine the reasonableness of gross amounts reported on the severance tax returns. Intergovernmental Revenue State of Alaska shared revenues, municipal assistance, 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 if final payments due are measurable and received within approximately two months after year end. State of Alaska and Federal government cost reimbursable grants and contracts 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 the balance due. Land Sales Proceeds and Other Local Revenues Amounts received pursuant to land sale contracts are recorded on the cash basis. 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 are paid. Other local revenues are recorded on a basis consistent with their nature in relation to measurement and availability standards. Implementation of GASB 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs. During the year ended June 30, 1994, the Borough implemented GASB 18. GASB 18 is based on the October 9, 1991, U.S. Environmental Protection Agency (EPA) rule, Solid Waste Disposal Facility Criteria, which establishes closure requirements for all municipal solid waste landfills (MSWLFs) that receive solid waste after October 9, 1991. The effect on the financial statements of the Borough is that a portion of the estimated closure and postclosure care costs of the MSWLF is recognized as an expense and as a liability in each period that the MSWLF accepts solid waste. See the current year financial impact in Note 14. C. Budgets and Budgetary Accounting Borou The Borough follows these procedures in establishing the budgetary data reflected in the combined financial statements: Capital Project Funds and the Oil Spill Clean Up Fund generally encompass the period from start up to project completion, which is generally greater than one year. Budget and actual information for the Oil Spill Clean-Up Fund has not been included in the Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual, because it is not budgeted on an annual basis. Revenues and expenses for the Oil Spill Clean-Up Fund were $1,268 and $34,637, respectively, in 1994. 1. 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. 2. Public hearings are conducted by the Borough Assembly to obtain taxpayer comments. 3. By June 10, the budget is legally enacted through passage of an ordinance by Borough Assembly action. If the Borough Assembly fails to pass an ordinance, the budget submitted by the Mayor becomes the adopted budget. 4. 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: a. All new appropriations are authorized by an appropriation ordinance that amends the annual budget ordinance. b. A resolution of the Borough Assembly is required to move (appropriate) amounts between departments and projects. c. 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. 5. Expenditures may not legally exceed appropriations at the following levels: Capital Projects Funds - project level; all other funds - department level. 6. All funds, except Capital Projects Funds and the Oil Spill Clean Up Fund are budgeted on an annual basis encompassing a fiscal year. Budgets of 16 7. Appropriations lapse at year end to the extent that they have not been expended for all funds except Capital Projects Funds and the Oil Spill Clean Up Fund, which lapse at project completion. 8. Budgets adopted by the Borough Assembly are in accordance with generally accepted accounting principles. 9. Additional appropriations for certain funds were enacted during the year. 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, 1994, there were eleven formal budget revisions to adjust the revenues and expenditures to available resources and program needs. 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 expenses 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 L� 1 1 1 1 n 1 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. Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of moneys are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds and Capital Projects Funds. Encumbrances outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Inventories Borough. Expendable operating supplies of the Borough are accounted for using the purchase method and, at June 30, 1994, there were no significant amounts of such items. School District The consumption method is used to account for the inventories of teaching, maintenance and foods supplies. These inventories are valued at the ower of average cost or market and available fund I alance was reserved for all inventories. Fuel inventory is accounted for by the purchase method and I alued at cost (first -in, first -out). Hospital Inventories are stated at the lower of cost or market, with cost determined substantially on a first -in first -out basis. Retirement Plans All full-time employees of the Borough and School District participate in either the Alaska Public Employees' Retirement System (PERS) or the Alaska Teachers' Retirement System (TRS). The Borough and School District accrue pension expense which includes current costs and amortization of prior service costs. The policy is to fund pension costs accrued. I Annual Leave The Borough (excluding the School District) records its liability for accrued annual leave in the 17 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 sufficient to pay the long -term debt is deposited in a Debt Service Fund. All funds record leave (including sick leave) as earned. E. Cash Flows All highly liquid investments (including restricted assets) with original maturities of three months or less are considered cash equivalents for purposes of the statement of cash flows. This includes equity in central treasury and other cash and cash equivalents and also temporary investments and equity in central treasury which are classified as "assets whose use is limited." NOTE 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 central treasury". In addition, investments are separately held by several of the Borough's funds. Investments, other than the investment in the deferred compensation plan which is carried at market value, are carried at cost. Deposits At June 30, 1994, the carrying amount of the Borough's deposits was $2,672,966 and the bank balance was $3,263,681. The year end bank balances are fully collateralized and insured. 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 Code requires all investments to be collateralized and/or insured. Collateral pledged on investments is required to be held for the Borough by a third party bank. In accordance with Governmental Accounting Standards Board Statement No. 3 (GASB 3) investments are categorized as follows: Category 1 includes investments that are insured, or registered or for which the securities are held by the Borough or its agent in the Borough's name. Category 2 includes uninsur and unregistered investments for which the securities are held by the counterparty's trust department or agent in the Borough's name. Category 3 includes uninsur and unregistered investments for which the securities are held by the counterparty, or by its trust department or agent but not in the Borough's name. At June 30, 1994, the Borough's investment balances were categorized as follows: Category 1 Repurchase agreements $ 1,000,000 $ - U.S. Government Securities 29,130,484 - Carrying Market Amount Value $ 1,000,000 $ 1,000,000 29,130,484 28,399,748 $ 30,130,484 $ - $ - 30,130,484 29,399,748 Deferred Compensation Plans 1,118,887 1,118,887 Money Market Account 3,433 3,283 Municipal League Investment Pool 4,661,056 4,661,056 Total Investments The above deposits of $2,672,966 and investments of $35,913,860 totaling $38,586,826, are reported under the following captions in the combined financial statements: Equity in central treasury $ 2,976,717 Temporary investments 33,494,974 Other cash and cash equivalents 194,525 Assets whose use is limited: Under malpractice funding arrangement held by trustee 173,786 By donor for specific purpose 1,109 Investment in deferred compensation plan 1,118,887 Equity in central treasury 126,828 Temporary investments 500.000 Total deposits and investments $ 38.586.826 NOTE 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. This is reflected as in -kind services in the financial statement of the School District. $ 35,913,860 $ 35,182,974 NOTE 4: HOSPITAL APPROPRIATION By terms of the operating agreement with the Lutheran Health Systems Management Company, the Borough is ultimately responsible for operating losses, if any sustained by the Hospital. The Borough received share revenue from the State of Alaska in the amount of $129,416, required to be passed through to the Hospital. This amount was recorded as revenue by the Hospital. NOTE 5: RETIREMENT COI UMTI7MENTS As of June 30, 1994, 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. 1 C� t 1 L] 1 1 t t `J 1 18 1 I' u 1 1 1 J 1 w i 1 k Plan Descriptions and Provisions Public Emplovees' 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 2% of the member's three highest 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 all remaining 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. Under State law, covered employees are required to contribute 6.75% of their annual salary to the System and the Borough contributes the amount actuarially required in addition to employee contributions to finance the benefits of the system. Teachers' Retirement System (TRS) The Teachers' Retirement System of Alaska is a joint contributory retirement system to provide benefits for teachers of the State of Alaska. All the School 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 fifteen 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 19 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 $25 per month for each year of credited service. In addition, major medical benefits are provided. TRS also provides death and disability benefits. Under State law, covered employees are required to contribute 8.65% of their base salary. The School District is required to contribute the amount actuarially needed in addition to member contributions to finance the benefits of the System. Funding Status and Progress The pension benefit obligation is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the System on a going - concem basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the System. The pension benefit obligation was computed as part of an actuarial valuation as of June 30, 1993 (latest available). Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets of 8.75 percent per year compounded annually for PERS and TRS, respectively, (b) projected salary increases of 6.5 percent a year for the first five years of employment and 5.5 percent per year thereafter and (c) health cost inflation of 12.5 percent per year, adjusted downward by 1% each year through 1997. The pension benefit obligation of PERS and TRS as calculated in the most recent actuarial valuation is as follows on the next page ($ in thousands): 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 UNFUNDED PENSION PERS TRS (1) S choo l fir �{IT" Borough District PERS Employers $ 2,862 $ 4,847 $ 7,709 $ 1,223,220 908 1,240 2,148 370,667 2,088 3,832 5,920 746,208 462 724 1,186 89,361 6,320 10,643 16,963 2,429,456 6,240 10,613 16,853 2,261,082 BENEFIT OBLIGATION $ (80) $ (30) $ (110) $ (168,374) (1) The TRS system does not make separate measurements of assets and pension benefit obligation for individual employers. Amounts for TRS represent the system as a whole. The School District's actuarially determined contribution was 1.6% of the total current year actuarially determined contribution requirements for all employers. Requirements and Contributions Made The 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 twenty-five 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 1994 were made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1993. The contributions ($ in thousands) consisted of the following on the next page: 1 t 1 t 1 w 1 1 1 [7 20 r Total current year payroll was $16,194,654. Valuation of Medical Benefits Historical Trend Information Medical benefits for retirees are provided by the payment of Medicare premiums from PERS and TRS. In fiscal 1994 the pre-65 monthly cost of $347 and post -65 cost of $121 (due to Medicare) were assumed such that the total blended rate for all retirees of $253 equals the present monthly premium rate. These medical premiums are then increased with the health inflation assumption. The actuarial cost method used for funding retirement benefits is also used to fund health benefits. Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. The pension benefit obligation has not been determined by the actuary for years prior to June 30, 1987. As a result, only information at June 30, 1994, 1993, 1992, 1991, 1990, 1989, 1988, and 1987 is available regarding the trend indicators, on the following page ($ in thousands). 21 PERS PERS Borough School District TRS Percent of Percent of Percent of Covered Covered Covered Amount Payroll Amount Payroll Amount Payroll Covered payroll $ 2,577 100% $ 2,987 100% $ 9,899 100% Contributions - Normal cost - Total contributions paid $ 489 18.98% $ 506 16.94% $ 1,397 14.11% Amortization of funding surplus (unfunded liability) (44) (1.71) (58) (1.94) 647 6.54 TOTAL $ 445 17.27% $ 448 15.00% $ 2,044 20.65% Required contributions - Employer $ 271 10.52% $ 246 8.25% $ 1,188 12.00% Employee 174 6.75 202 6.75 856 8.65 TOTAL $ 445 17.27% $ 448 15.00% $ 2,044 20.65% Total current year payroll was $16,194,654. Valuation of Medical Benefits Historical Trend Information Medical benefits for retirees are provided by the payment of Medicare premiums from PERS and TRS. In fiscal 1994 the pre-65 monthly cost of $347 and post -65 cost of $121 (due to Medicare) were assumed such that the total blended rate for all retirees of $253 equals the present monthly premium rate. These medical premiums are then increased with the health inflation assumption. The actuarial cost method used for funding retirement benefits is also used to fund health benefits. Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. The pension benefit obligation has not been determined by the actuary for years prior to June 30, 1987. As a result, only information at June 30, 1994, 1993, 1992, 1991, 1990, 1989, 1988, and 1987 is available regarding the trend indicators, on the following page ($ in thousands). 21 PERS j School Borou District Net asset available for benefits: 1987 $ 2,222 $ 5,685 1988 2,896 7,111 1989 3,468 7,794 1990 4,227 8,751 1991 4,583 8,273 1992 5,277 9,413 1993 6,240 10,613 Pension benefit obligation (PBO): 1987 $ 1,929 $ 5,085 1988 2,680 6,477 1989 3,328 7,331 1990 3,888 7,467 1991 4,655 8,862 1992 5,356 9,819 1993 6,320 10,643 i c Net assets available for benefits as a percentage of PBO: 1987 115.19% 111.80% 1988 108.06% 109.79% 1989 1990 104.21% 109.72% 106.32% 117.20% 1991 98.45% 93.35% 1992 98.53% 95.87% 1993 98.73% 99.72% Assets in excess (deficiency) of PBO: 1987 $ 294 $ 600 1988 216 634 1989 140 463 1990 339 1,284 1991 (72) (589) 1992 (79) (406) t 1993 (80) (30) Annual covered payroll: 1987 $ 1,701 $ 2,431 1988 1,830 2,473 1989 2,131 2,526 1990 2,373 2,562 1991 2,418 2,615 l; 1992 2,429 2,648 1993 2,845 2,863 i 1994 2,577 2,987 Assets in excess (deficiency of PBO expressed as a percentage of annual covered payroll) 1987 17.28% 24.68% 1988 11.80% 25.64% t 1989 1990 6.57% 14.29% 18.33% 50.12% 1991 (2.98)% (22.52) 1992 (3.25) (15.33)% 1993 (2.81)% (1.05) Contribution rates: Employee 1987 6.75% 6.75% 1988 6.75% 6.75% 1989 6.75% 6.75% 1990 6.75% 6.75% 1991 6.75% 6.75% 1992 6.75% 6.75% 1993 6.75% 6.75% l 1994 6.75% 6.75% j Employer 1987 4.27% 7.29% j 1988 9.20% 6.24% 1989 9.20% 6.24% 1990 5.34% 4.27% 1991 7.55% 5.24% 1992 10.25% 8.25% 1993 9.07% 3.25% 1994 10.52% 8.25% } NOTE 6: FIXED ASSETS $ 40,275 Building and improvements Internal Equipment A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1994 follows: Service July 1, 1993 Additions Deductions June 30, 1994 Government $ - Building and improvements 2,125,334 - Land $ 8,060,221 $ - $ - $ 8,060,221 Buildings 67,222,196 170,122 - 67,392,318 Improvements other than buildings 842,139 3,014 - 845,153 Machinery and equipment 2,384,659 94,997 630,675 1,848,981 Construction work -in- progress 1,180,894 5,167,984 - 6,348,878 $ 79,690,109 $ 5,436,117 $ 630,675 $ 84,495,551 School District Equipment $ 2 ,772,982 $ 325,462 $ 107,651 $ 2,990,793 The following is a summary of Proprietary Fund fixed assets at June 30, 1994: $ 40,275 Building and improvements Internal Equipment Enterprise Service 7,217,471 Funds Fund Sewer and water lines $ 16,224,046 $ - Building and improvements 2,125,334 - Equipment 583,562 699,245 18,932,942 699,245 Less: accumulated depreciation (3,282,443) (134,707) Net fixed assets $ 15,650,499 $ 564,538 The following is a summary of Hospital fixed assets at June 30, 1994 Land and improvements $ 40,275 Building and improvements 4,136,072 Equipment 3,041,124 7,217,471 Less: accumulated depreciation (4,167 570) Net fixed assets $ 3,049,901 23 NOTE 7: HOSPITAL CAPITAL LEASE OBLIGATION The Hospital leases equipment under a long -term lease agreement at an imputed 8.50% rate of interest. The unamortized cost of such equipment included in fixed assets at June 30, 1994 is $316,000. Amortization of the leased equipment is included in depreciation expense. Minimum lease payments for the remainder of the lease term are as follows: Year ending June 30, 1995 1996 1997 1998 Total minimum lease payments Less interest Present value of minimum lease payments Less current portion Capital lease obligation $ 154,239 127,781 13,245 2,678 297,943 (28,434) 269,509 (133,999) $ 135,510 24 1 t L This page intentionally left blank. 1 w NOTE 8: LONGTERM DEBT The following is a summary of long -term debt for the year ended June 30, 1994: * Interest free unless delinquent; then 7% plus fees and penalties Interest Principal Payments Isuse Maturity Type of Debt Rates Dates Date Dates Dates Amount Environmental Protection Agency Asbestos Abatement Loan N /A* N /A* 6/20/85 1118105 12/31/94 $ 10,408 6/30 and 12/31 1995 thru 2004 20 x 10,417 218,748 General Obligation School Refunding Bonds - 1989 Series 6.6 -8.0% 811 -2/1 5/1/89 8/1/00 8/1/94 780,000 8/1/95 835,000 8/1/96 890,000 8/1/97 945,000 8/1/98 1,015,000 8/1/99 1,080,000 8/1/00 1,155,000 6,700,000 General Obligation School Refunding Bonds - 1991 Series 4.65 -5.90 12/1 -6/1 7/15/91 6/1/96 12/1/94 765,000 611195 250,000 12/1/95 750,000 6/1/96 250,000 2,015,000 General Obligation Bonds - 1993 Series 4.05 -7.00% 8115 -2/15 11/15/93 2/15/06 2 115/95 455,000 2115/96 625,000 2/15/97 655,000 2115/98 695,000 2/15/99 730,000 2/15/00 760,000 2/15/01 790,000 2/15/02 825,000 2/15/03 860,000 2/15/04 900,000 2/15/05 940,000 2/15/06 980,000 9,215,000 General obligation Bonds - 1994 Series 5.40 -5.50% 8/15 -2/15 11/15/93 2115/14 2 115/10 4,465,000 2/15/14 5,520,000 9,985,000 $ 28,133,748 * Interest free unless delinquent; then 7% plus fees and penalties Authorized Prior Years Current Year Fiscal Balance at Balance at Year Amount Issued Retired July 1, 1993 Issued Retired June 30, 1994 1985 $ 375,000 $ 375,000 $ 135,419 $ 239,581 $ - $ 20,833 $ 218,748 1989 10,000,000 10,000,000 2,575,000 7,425,000 1992 4,875,000 4,875,000 1,830,000 3,045,000 725,000 6,700,000 1,030,000 2,015,000 1994 9,215,000 - 9,215,000 9,215,000 1994 9,985,000 - - - 9,985,000 - 9,985,000 $ 34,450,000 $ 15,250,000 $ 4,540,419 $ 10,709,581 $ 19,200,000 $ 1,775,833 $ 28,133,748 27 The annual requirements to amortize all general obligation bonded debt and the EPA loan payable outstanding as of June 30, 1994, including interest payments of $14,177,568 on the general obligation debt, are as follows: The amount of $4,133,559 is available in the Debt Service Funds to service all general obligation bonds. There are a number of limitations and restrictions contained in the various bond indentures. The Borough is in compliance with all significant limitations and restrictions. General Obligation Bonds - 1993 Series A and 1994 Series A t [I NOTE 9: CAPITAL PROJECTS FUNDS CONSTRUCTION COMMITMENTS A summary of Capital Projects Funds construction commitments at June 30, 1994 follows: Various Borough Projects $1,221,678 School Bond Improvements 442,465 ' Hospital Bond Improvements 1,808,318 State capital trusts 6.668 In 1994 the Borough sold two series of general $ 3-479-129 obligation bonds, 1993 Series A for $9,215,000 and 1994 Series A bonds for $9,985,000, totaling Resources are presently available or committed to $19,200,000. The Borough used $9,500,000 to pay the finance construction commitments at June 30, 1994 for cost of hospital and related capital improvements, and all funds. the remaining proceeds, $9,700,000 were used to pay the cost of school and related capital improvements. 28 1 General EPA Loan June 30, Obligation Payables Total 1995 $ 3,895,437 $ 20,833 $ 3,916,270 1996 3,830,170 20,833 3,851,003 1997 2,782,938 20,833 2,803,771 1998 2,779,286 20,833 2,800,119 1999 2,780,415 20,833 2,801,248 Thereafter 26,024,322 114,583 26,138,905 $ 42,092,568 $ 218,748 $ 42,311,316 The amount of $4,133,559 is available in the Debt Service Funds to service all general obligation bonds. There are a number of limitations and restrictions contained in the various bond indentures. The Borough is in compliance with all significant limitations and restrictions. General Obligation Bonds - 1993 Series A and 1994 Series A t [I NOTE 9: CAPITAL PROJECTS FUNDS CONSTRUCTION COMMITMENTS A summary of Capital Projects Funds construction commitments at June 30, 1994 follows: Various Borough Projects $1,221,678 School Bond Improvements 442,465 ' Hospital Bond Improvements 1,808,318 State capital trusts 6.668 In 1994 the Borough sold two series of general $ 3-479-129 obligation bonds, 1993 Series A for $9,215,000 and 1994 Series A bonds for $9,985,000, totaling Resources are presently available or committed to $19,200,000. The Borough used $9,500,000 to pay the finance construction commitments at June 30, 1994 for cost of hospital and related capital improvements, and all funds. the remaining proceeds, $9,700,000 were used to pay the cost of school and related capital improvements. 28 1 1 J t 1 1 1 1 1 L�l 1 1 NOTE 10: ENTERPRISE FUNDS SEGMENT INFORMATION The Borough owns and operates a Water and Sewer Utility Fund and a Sanitary Services Fund. Segment financial data as of and for the year ended June 30, 1994 for the Sanitary Services, Water and Sewer Utilities are as follows: Operating revenues Depreciation expense Operating income (loss) Net loss Amortization of contributions in aid of construction Property, plant and equipment additions Net working capital Total assets Total equity Sanitary Water Sewer 383,040 Services Utility Utility Total 1,646,210 S 430,532 S 528,944 S 2,605,686 81,255 109,653 197,065 387,973 (291,294) (121,944) (202,760) (615,998) (291,294) (110,261) (191,079) (592,634) 76,805 109,645 196,590 383,040 29,679 15,115 16,105 60,899 (124,123) 195,410 228,653 299,940 2,428,634 5,528,281 9,154,365 17,111,280 1,787,013 5,436,585 9,072,220 16,295,818 NOTE 11:DEFERRED COMPENSATION PLANS Boron The Kodiak Island Borough has a deferred compensation plan created in accordance 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, 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. 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. Hospital The Hospital also has a Section 457 deferred compensation plan under which substantially all Hospital employees may elect to become participants. At the direction of the plan participants, the Hospital withholds the employee's contributions and deposits them with the plan trustee. The Hospital does not make contributions to this plan. NOTE 12: MALPRACTICE INSURANCE AND RELATED LITIGATION During the period from January 1, 1990 to December 31, 1992, the Hospital was self - insured for medical malpractice claims up to a maximum of $500,000 per occurrence and $1,000,000 in aggregate. In addition, the Hospital purchased stop loss insurance for claims up to $3,000,000 per occurrence and $6,000,000 in aggregate. Effective January 1, 1993, the Hospital purchased a claims -made policy through a commercial insurance carrier with a retroactive date of January 1, 1987. The policy has coverage limits of $2,000,000 per loss event and $4,000,000 in the aggregate. Under the policy the Hospital retains the first $10,000 per loss event and $50,000 in the aggregate. However, the Hospital has deposited $173,786 into a fund, which is held by a trustee, for use in funding these retention levels or as 29 tail coverage for claims occurring prior to January 1, At June 30, 1994, the Hospital has accrued $242,353 1987. Accordingly, claims based on occurrences prior for incidents that may have occurred and not been to that date, will be subject to this self - insurance identified by the Hospital. coverage. NOTE 13: INDIVIDUAL FUND DISCLOSURES * Interfimd Receivables and Pavables A summary of interfund receivables and payables at June 30, 1994 is as follows: General Fund Special Revenue Funds - Mental Health Energy /Coastal Management Day Care Land Sales Building and Grounds Community and Regional Affairs Oil Spill Cleanup Debt Services Fund - School Bonds Other Capital Project Funds - Various Borough Projects School Bond Improvements Hospital Bond Improvements School Equipment and Furnishings State Capital Grants School Major Maintenance Enterprise Funds - Sanitary Services Sewer Utility Component Unit - School District Receivable Payable $ - $ 4,716,362 105,000 30,000 - 10,000 80,000 - 128,500 - - 3,500 100,000 145,000 350,325 - 50,000 - 375,000 - 15,000 350,000 - 40,000 - - 240,000 240,000 - 4,952,642 651,605 $ 6,291,467 $ 6,291,467 Fund Deficits The fund deficits at June 30, 1994 are as follows: Capital Projects Funds - State Capital Grants $ 42,975 Special Revenue funds - Energy /Coastal Management 20 Community and Regional Affairs 3,415 Oil Spill Clean-up 4.072 / $ 50,482 .> Management intends to fund the deficits in fiscal year 1995 through transfers from other funds.. _ b�- Proprietary Funds Transfers - d ` Excess Internal service Interfund oQeratin transfe and transfers from Funds are transferred from one fund to support component units have been made in accordance with expenditures of other funds in accordance with the budget ordinances with the exception of the transfer of authority established for the individual fund. Transfers the funding of long -term annual leave. between fund types and component units during the Sewer year ended June 30, 1994, were as follows: Transfers In 54 School Special Debt Capital Internal District Transfers General Revenue Service Projects Service Component Out Fund Funds Funds Funds Funds Unit Fund 130M General Fund $ 3,824,000 $ - $ 295,000 $ 9,000 $ 70,000 $ 250,000 $ 3,200,000 Special Revenue Funds 309,635 - - 4,765 304,870 - - Debt Service Funds 1,680,789 4,759 1,030 - 1,675,000 - - Capital Projects Funds 112,000 - - - 112,000 - - Schoot District Component Unit 2,075,565 - - 2,075,565 - - Total Transfers $ 8,001,989 $ 4,759 $ 296,030 $ 2,089,330 $ 2,161,870 $ 250,000 $ 3,200,000 Excess of Expenditures Over Appropriations General Fund The following departments' expenditures exceeded their appropriations: Department Excess Building Inspector $ 288 The following funds' expenditures exceeded their appropriations: Special Revenue Funds Fund Excess Bay View Road $ 2.006 jl 1 1 31 Proprietary Funds Fund Excess Internal service $ 88,491 Sanitary services 254,994 Water 160,476 Sewer 301.704 54 jl 1 1 31 Proprietary Funds' reconciliation of fund equity for the year ended June 30, 1994 is as follows: Fund equity at beginning of year Net income (loss) Contributions in aid of construction Fund equity at end of year Enterprise Funds Sanitary Water Sewer Internal Services Utility Utility Service Fund F1 $ 2,078,307 $ 5,531,731 $ 9,247,194 $ - (291,294) (110,261) (191,079) (74,638) 15,115 16,105 617,382 $ 1,787,013 $ 5,436,585 $ 9,072,220 $ 542,744 ' NOTE 14: SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS State and federal laws and regulations require that the Kodiak Island Borough place a final cover on its landfill when closed and perform certain maintenance years after closure. In addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and postclosure care costs that will be incurred based on the date the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used during the year. The estimated liability of landfill closure and postclosure care costs is $281,449 as of June 30, 1994, which is based on 21% usage (filled) of the landfill. Of the total liability at June 30, 1994, $28,454 was accrued in the current year based on current year usage. The remaining $252,995 represents the cumulative effect of adopting GASB 18 (See Note 1B) in the current year and is the estimated liability based on prior years' landfill usage. It is estimated that an additional $1,068,551 will be recognized as closure and postclosure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity. The estimated total current cost of the landfill closure and postclosure care of $1,350,000 is based on the amount that would be paid if the landfill were closed as of June 30, 1994. However, the actual cost of closure and postclosure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The Kodiak Island Borough is required by state and federal laws and regulations to make annual contributions to finance closure and postclosure care. The Kodiak Island Borough is in compliance with these requirements by annually recording the liability based on the estimates provided by the Kodiak Island Borough's environmental engineer. It is anticipated that future inflation costs and additional costs that might arise from changes in postclosure requirements, due to changes in technology or more rigorous environmental regulations, for example, will be financed primarily by charges to future landfill users and secondarily by taxpayers. NOTE 15: CONTINGENCIES Litigation General - 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. In addition, management feels that all the material risks that the Borough is exposed to have been adequately insured via commercial insurance and the Hospital self insurance trust. 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. Ll 1 1 32 I 1 1 I 1 1 n GENERAL FUND The General Fund is used to account for resources traditionally associated with government which are not required legally or by sound financial management to be accounted for in any other fund. Principal sources of revenue are property taxes and intergovern- mental revenues. Primary expenditures are for general government and public service. � I KODIAK ISLAND BOROUGH EXHIBIT A -1 GENERAL FUND COMPARATIVE BALANCE SHEETS JUNE 30, 1994 AND 1993 1994 1993 ASSETS Equity in central treasury $ 25,471 $ 25,117 Temporary investments 6,798,485 6,270,623 Total cash and investments 6,823,956 6,295,740 RECEIVABLES: Accounts receivable 50,681 90,538 State of Alaska 38,623 45,249 Due from other funds - 2,114 Property taxes: Delinquent taxes 176,971 158,630 Allowance for uncollectible delinquent taxes (15,828) (17,667) Accrued interest receivable 92,854 128,301 Net receivables 343,301 407,165 $ 7,167,257 $ 6,702,905 LIABILITIES AND FUND BALANCE LIABILITIES: Accounts payable $ 48,715 $ 87,115 Payroll taxes and employee benefits 22,842 45,240 Due to other funds 4,716,362 4,528,640 Other accrued liabilities 3,685 6,589 Total liabilities 4,791,604 4,667,584 FUND BALANCE: Unreserved - designated for subsequent year expenditures 2,375,653 2,035,321 Total fund balance 2,375,653 2,035,321 $ 7,167,257 $ 6,702,905 33 J KODIAK ISLAND BOROUGH EX "ff A -2 I GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COWARATTVE TOTALS FOR 1993 1994 Revenues: Property taxes: Real Personal Motor vehicle Penalty and interest Payments in Lieu of Taxes Total property taxes Severance taxes: Fish Mining Logging Total severance taxes Intergovernmental: State sources: State Shared Revenue Municipal Assistance Raw Fish Tax Electric co-op tax Miscellaneous Total State sources Federal sources Total intergovernmental revenue Licenses, permits, fees and other local revenues: Building and trailers Subdivision and zoning fees Sale of copies Emergency medical services Miscellaneous Total licenses, permits, fees and other local sources Investments and property: Interest income Total investments and property Total revenues Variance- Favorable 1993 Budget Actual (Unfavorable) Actual S 2,748,300 S 2,699,552 S (48,748) S 2,594,118 532,010 509,371 (22,639) 508,643 180,000 163,344 (16,656) 150,012 111,000 118,808 7,808 101,072 424,000 430,014 6,014 423,863 3,995,310 3,921,089 (74,221) 3,777,708 605,000 507,510 (97,490) 581,875 5,000 3,305 (1,695) 4,822 204,700 258,814 54,114 116,753 814,700 769,629 (45,071) 703,450 410,000 399,010 (10,990) 517,464 419,000 402,201 (16,799) 451,010 1,234,000 1,244,127 10,127 1,005,664 8,000 9,275 1,275 10,007 700 192 (508) 240 2,071,700 2,054,805 (16,895) 1,984,385 6,300 8,413 2,113 7,345 2,078,000 2,063,218 (14,782) 1,991,730 1 t 60,000 38,813 (21,187) 21,819 5,000 6,803 1,803 5,568 500 2,428 1,928 9,922 33,000 13,864 (19,136) 30,665 48,200 395,986 347,786 365,851 146,700 457,894 311,194 433,825 250,000 291,047 (41,047) 289,570 250,000 291,047 (41,047) 289,570 S 7,284,710 S 7,502,877 S 218,167 S 7,196,283 , continued 34 1 1 KODIAK ISLAND BOROUGH ' Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1994 Kodiak, Alaska ' Jerome Selby, Borough Mayor 7 7 Prepared by Finance Department: Karleton Short, Finance Director Cheryl Bolger, Accountant u KODIAK ISLAND BOROUGH EX MIT A -2, continued GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 1994 Expenditures: Borough assembly Mayor's department Clerk's department Legal services Finance department Data services Assessment department Engineering facilities department Community development department Building inspector Economic development General administration Emergency preparedness Educational support Health and sanitation Culture and recreation Total expenditures Excess of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers out Transfers to component units Net other financing uses Excess of revenues and transfers in over expenditures and transfers out Fund balance at beginning of year Fund balance at end of year Variance- Favorable 1993 Budget Actual (Unfavorable) Actual $ 147,734 $ 147,423 $ 311 $ 152,022 185,720 185,593 127 168,417 244,542 239,279 5.263 216,059 223,278 220,847 2,431 271,495 633.410 607,632 25,778 386,552 - - - 278,662 317,060 287,405 29,655 248,819 160,176 115,043 45,133 120,645 404,700 390,882 13,818 384,649 81,850 82,138 (288) 72,550 72,000 60,914 11,086 38,896 369,850 362,117 7,733 384,920 18,200 9,906 8,294 33,552 126,000 115,695 10,305 174,721 442,450 385,430 57,020 432,752 133,000 133,000 - 198,586 3,559,970 3,343,304 216,666 3,563,297 3,724,740 4,159,573 434,833 3,632,986 - 4,759 4,759 - (624,000) (624,000) - (358,782) (3,200,000) (3,200,000) - (3,220,460) (3,824,000) (3,819,241) 4,759 (3,579,242) $ (99,260) 340,332 $ 439,592 53,744 2,035,321 1,981,577 $ 2,375,653 $ 2,035,321 35 KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TO TALS FOR 1993 EXHIBIT A -3 1994 Variance- Favorable 1993 Budget Actual (Unfavorable) Actual Expenditures: Borough assembly: Personnel services Fringe benefits Support, goods and services Lobbyist Total Mayor's department: Personnel services Fringe benefits Support, goods and services Total Clerk's department Personnel services Fringe benefits Support, goods and services Capital outlay Total Legal services: Legal fees Support; goods and services Total Finance department Personnel services Fringe benefits Support goods and services Capital outlay Allocated to projects Total Data services: Personnel services Fringe benefits Contracted services Support goods and services Capital outlay Allocated to projects Total $ 16,800 $ 16,800 $ - $ 16,600 1,514 1,513 1 1,284 74,074 73,654 420 76,036 55,346 55,456 (110) 58,102 147,734 147,423 311 152,022 106,920 107,726 (806) 103,131 34,710 33,998 712 29,921 44,090 43,869 221 35,365 185,720 185,593 127 168,417 120,642 118,977 1,665 115,353 42,400 42,436 (36) 37,453 80,100 76,485 3,615 63,253 1,400 1,381 19 - 244,542 239,279 5,263 216,059 160,778 156,531 4,247 234,810 62,500 64,316 (1,816) 36,685 223,278 220,847 2,431 271,495 331,350 316,156 15,194 272,990 102,730 101,159 1,571 79,837 219,050 223,000 (3,950) 54,600 6,280 6,871 (591) 2,679 (26,000) (39,554) 13,554 (23,554) 633,410 607,632 25,778 386,552 - - - 217,801 - - - 62,634 - - - 12,817 - - - 83,630 - - - 51,780 - _ - - (150,000) 36 278,662 continued 1 t r 1 KODIAK ISLAND BOROUGH EXHIBIT A -3, continued GENERAL FUND SCHEDULE OF EXPENDr=S AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 Engineering facilities department Personnel services 174,640 1994 (36,841) 171,120 Fringe benefits 52,750 71,733 Variance- 50,921 Contracted services 11,000 2,860 Favorable 1993 Support, goods and services Budget Actual (Unfavorable) Actual Assessment department 3,000 1,219 1,781 - Personnel services $ 174,120 $ 156,989 $ 17,131 $ 166,432 Fringe benefits 57,540 47,956 9,584 50,497 Contracted services - 2,425 Support, goods and services 82,175 79,808 2,367 27,865 Capital outlay 3,225 2,652 573 1,600 Total 317,060 287,405 29,655 248,819 Engineering facilities department Personnel services 174,640 211,481 (36,841) 171,120 Fringe benefits 52,750 71,733 (18,983) 50,921 Contracted services 11,000 2,860 8,140 16,351 Support, goods and services 44,750 37,879 6,871 40,649 Capital outlay 3,000 1,219 1,781 - Allocated to projects (125,964) (210,129) 84,165 (158,396) Total 160,176 115,043 45,133 120,645 Community development department Personnel services 276,100 278,174 (2,074) 266,030 Fringe benefits 101,510 93,841 7,669 87,158 Contracted services 300 - 300 190 Support; goods and services 63,130 58,651 4,479 49,181 Capital outlay 2,760 2,760 - 2,886 Allocated to projects (39,100) (42,544) 3,444 (20,796) Total 404,700 390,882 13,818 384,649 Building inspector. Contracted services 79,800 79,960 (160) 72,446 Support, goods and services 2,050 2,178 (128) 104 Total 81,850 82,138 (288) 72,550 Economic development General services: Personnel services - 5,939 (5,939) - Fringe benefits - 590 (590) - Contracted services 44,000 22,424 21,576 21,888 Support goods and services 3,000 6,961 (3,961) 8 Contributions: Kodiak Convention Bureau 25,000 25,000 - 17,000 Total 72,000 60,914 11,086 38,896 continued 37 38 1 ' KODIAK ISLAND BOROUGH EXMBTT A -3, continued GENERAL FUND SCHEDULE OF EXPENDTT[JRES AND TRANSFERS , BUDGET AND ACTUAL x YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 1994 Variance- r Budget Actual Favorable (Unfavorable) 1993 Actual General administration: Personnel services $ 39,810 $ 35,679 $ 4,131 $ 25,791 Fringe benefits 9,010 11,923 (2,913) 24,319 Professional fees 134,000 131,519 2,481 169,821 Support goods and services 173,870 170,842 3,028 163,689 ' Capital outlay 13,160 12,154 1,006 1,300 Total 369,850 362,117 7,733 384,920 Emergency preparedness: Support, goods and services 8,200 2,846 5,354 13,152 Capital outlay Total 10,000 18,200 7,060 9,906 2,940 8,294 20,400 , 33,552 Educational support: Support goods and services 100,000 92,538 7,462 150,000 Audit expense 26,000 23,157 2,843 24,721 Total 126,000 115,695 10,305 174,721 Health and sanitation: Emergency medical services 32,450 30,143 2,307 40,895 Animal control 48,000 48,000 - 48,596 Council on Alcoholism 70,500 40,787 29,713 100,000 State Health Services Villages - - - 25,800 State Health Services KANA 8,000 8,000 - 8,600 Women's Resource Crisis 29,700 29,700 - 38,114 American Red Cross 2,000 2,000 - 2,000 Alaska Legal Services 2,000 2,000 . Kodiak Baptist Mission 30,000 30,000 - 60,000 Small World (Day Care) 16,000 16,000 - 18,000 Special Olympics 6,000 6,000 - 7,000 Health Center Support 2,000 2,000 - 1,747 Senior Citizen Support 24,000 24,000 - 24,000 Kodiak Respite Care 3,000 3,000 - 3,000 Rainbow Child Care Center 2,000 2,000 - - Salvation Army 5,000 5,000 - Brother Francis Center 20,000 20,000 Ambulance service 141,800 116,800 25,000 55,000 f Total 442,450 385,430 57,020 432,752 continued , 38 1 �J 1 KODIAK ISLAND BOROUGH EXHIBIT A -3, continued GENERAL FUND SCHEDULE OF EXPENDTFURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATFVE TOTALS FOR 1993 Alaska Future Leaders Total Total expenditures Other financing sources: Operating transfers in: Debt service: Other Total other financing sources Transfers to component units: School District Hospital Total transfers to component units Other financing uses: Operating transfers out Special revenue funds: Mental Health Center Building and grounds Debt service fund: Other Internal service fund: Data processing Capital projects fund: Various Borough projects Total operating transfers out Total other financing uses Net other financing sources (uses) Total expenditures and transfers 2,000 2,000 1994 133,000 133,000 - 198,586 anance- 3,343,304 216,666 3,563,297 - Favorable 1993 - Budget Actual (Unfavorable) Actual Culture and recreation: - (3,200,000) - - KMXT Public Radio $ 12,000 $ 12,000 $ - $ 12,000 Historical Society 9,000 9,000 - 9,000 Summer basketball 4,000 4,000 - 3,886 Kodiak Island Sport Association 2,000 2,000 - 2,500 Kodiak Art Council 13,000 13,000 - 12,000 Village Libraries 18,000 18,000 - 18,000 Chiniak Public Library 3,000 3,000 - 3,000 City of Kodiak Library 3,000 3,000 - 60,000 Head Start 8,200 8,200 - 8,200 Kodiak College 34,000 34,000 - 34,000 Kodiak Little League 2,500 2,500 - 2,000 Kodiak Library Association - - - 1,500 Santa in the Villages 2,300 2,300 - 1,000 Karluk IRA Council 20,000 20,000 - 20,000 KANA Dorms - - - 6,500 KANA Alutiiq Studies - - - 3,500 Elks Fireworks - - - 1,500 Alaska Future Leaders Total Total expenditures Other financing sources: Operating transfers in: Debt service: Other Total other financing sources Transfers to component units: School District Hospital Total transfers to component units Other financing uses: Operating transfers out Special revenue funds: Mental Health Center Building and grounds Debt service fund: Other Internal service fund: Data processing Capital projects fund: Various Borough projects Total operating transfers out Total other financing uses Net other financing sources (uses) Total expenditures and transfers 2,000 2,000 - - 133,000 133,000 - 198,586 3,559,970 3,343,304 216,666 3,563,297 - 4,759 4,759 - - 4,759 4,759 - (3,200,000) (3,200,000) - (3,200,000) - - - (20,460) (3,200,000) (3,200,000) - (3,220,460) (245,000) (245,000) - (241,280) (50,000) (50,000) - (100,000) (9,000) (9,000) - (17,502) (250,000) (250,000) - - (70,000) (70,000) - - (624,000) (624,000) - (358,782) (3,824,000) (3,824,000) - (3,579,242) (3,824,000) (3,819,241) 4,759 (3,579,242) $ (7,383,970) $ (7,162,545) $ (211,907) $ (7,142,539) 39 1 1 11 I SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues from specific sources which by law are restricted to finance particular func- tions and activities. 1 1 L' 1 This page intentionally left blank. w 1 41 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET AND CHANGES IN FUND BALANCE NNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 42 s s Fire and Road Service Districts Fire Road Women's Monashka District District Women's Bay View Area 1 Bay Bay One Two Bay Road ASSETS Equity in central treasury $ 113,476 $ 39,409 $ 38,048 $ 224,190 S 2,945 S 190,242 $ 1,886 Temporary investments 375,880 - - - - - - Receivables: State of Alaska - - - I.and sales contract, due within one year - - Accrued interest 119 - - - - - - Other 6,432 941 1,271 5,510 141 11,817 299 Allowance for doubtful receivables - - - - - - - Due from other funds - Prepaid expenses - - - Land sale contracts, due after one year $ 495,907 S 40,350 $ 39,319 $ 229,700 $ 3,086 $ 202,059 $ 2,185 LIABII-ITTES AND FUND BALANCES LIABILITIES: Accounts payable $ 136,353 $ 3,415 $ - $ 2,237 $ - $ 25,899 $ - Employee benefits accrued and withheld 1,627 - - - - Customer deposits - 275 - - Deferred and unrealized revenues - - - Due to other funds Total liabilities 137,980 3,690 - 2,237 25,899 FUND BALANCES: Reserved: Prepaid expenses - - - - - - - Unreserved: Undesignaud 357,927 36,660 39,319 227,463 3,086 176,160 2,185 Total fund balances 357,927 36,660 39,319 227,463 3,086 176,160 2,185 $ 495,907 $ 40,350 S 39,319 $ 229,700 $ 3,086 S 202,059 $ 2,185 42 s s Et Z£L`I8L`£ $ 8I4 $ 8S6`ObT $ 58 $ IZ8`9T $ 9£b`94I S 06Z`088'I $ £8I`£b S OWL£ S 668'404 $ 946`£56`1 8LZ`610`Z (ZLO`4) (Sib`£) 914`91 £68 Z£I 89L`£9L 40Z'9 (OZ) bOL`49Z Z£8'9I6I SLZ`610`Z (ZLO`4) (Sib`£) 9Ib'91 £68`Z£i 89L`£9L 17OZ`9 (OZ) bOL`b9Z 171I`L£ - (I8L`19) (000`SZI) - - (000`5Z) - (000'00I) 98L'LZ8'1 041'£991 0£0`SbI 005`£ 504 £4S`£I ZZS`9I1 6L6'9£ 09I'L£ S6I`ObI ZLZ 8� OZ OO� S £ 6Z — 000'541 00S� £— - I4£`80Z 000 — 000 000 S — LOZ`060 ZO£`IOI`I - SL6`L£I - ZO£'IOI`I - - - Lb4`£ b49`9 408'80Z`I S51'8501 - - 5LZ`Z89 690 Ib9'6I 00£`OZ 8S6`OZ $ 58 $ 6L5'91 S 9£6`LI S SS6'0I S 1911 L6£`S $ - Z15`LI 6IZ'90Z $ b6£`I4Z $ Of $ $ 504 $ £45`£I $ 650I $ 6L6`9Z $ 09I`L $ 4I£'Ii $ Z£L'I8L'£ $ 8I4 Z89`£ $ 856`041 $ 98 $ TZ8`9I $ 9£b'M $ 06Z'088`I $ £SI'£b $ 04I`L£ S 668'404 S 865'0 8 I IO£ - - IO£ I8 4II`L£ I4Z - - - - - IbZ 8S1`90Z 005`80£ 000`001 - OOS`8Z1 000`08 (I8L`19) (000`SZI) - - (000`5Z) (000'00I) 0£9`L9£ SL8`LIS 000`0Z Z4Z 48£'61 - I48`154 880Z b64'II - - - SL£`II I4£`80Z 000`68Z - - 000'682 SL6`L£I ££4 ZZI - 68£`8£ 4Z9`9£ OZ4'L4 408'80Z`I S51'8501 - 5LZ`Z89 - 506`IL4 S 914`L89 $ 8S6`OZ $ 58 $ 6L5'91 S 9£6`LI S SS6'0I S b6L'4 $ 91S S L6£`S $ 4661 n� sne.$b �eQ�Q 1� Jo1uoz) spunoa0 £661 sales Purl sleloZ ILLS l.0 leuo!b2I su�y Poe lelSeO� tPI=14 V ClnmunuoD paelPOOM ��PpH /a- MUOIN —sold 1u-9 'le1S F] I .LIgIHX3 I I ) 1' KODIAK ISLAND BOROUGH Fire and Road Service Districts SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 Road II 44 1 Fire and Road Service Districts , Fire Road Women's Monashka District District Women's Bay View Area 1 Bay Bay One Two Bay Road Revenues: Property taxes $ 184,729 $ 39,005 $ 22,720 $ 172,447 $ 3,086 $ 78,124 $ 4,015 State sources 20,749 749 2,709 11,170 - 13,209 1,081 Federal sources 2.372 - - 3,162 - - Land sale proceeds - _ Licenses, permits, fees and other local revenues 6,000 6,850 10,000 Investments and property 14,719 Total revenues 228,569 46,604 25,429 186,779 3,086 101,333 5,096 Expenditures: Planning and community development t Health and sanitation _ General administration 155,879 42,024 _ Oil spill cleanup _ _ Capital outlay: Services district maintenance 12,154 48,440 66,954 6,006 General Total expenditures 155,879 42,024 12,154 48,440 66,954 6,006 Excess (deficiency) of revenues i over (under) expenditures 72,690 4,580 13,275 138,339 3,086 34,379 (910) Operating transfers in Operating transfers out (1620) Net operating transfers (3,620) Excess (deficiency) of revenues and operating transfers in over (under) expenditures and operating transfers out 69,070 4,580 13,275 138,339 3,086 34,379 (910) Fund balance beginning ofyear 288,857 32,080 26,044 89, 124 - 141,781 3,095 i Fund balance at end of year $ 357,927 $ 36,660 $ 39,319 $ 227,463 $ 3,086 $ 176,160 $ 2,185 h B II 44 1 EXHIBIT B-2 (61,162) Federal and 17,579 (123,112) 3,577 (33,369) 65,332 (970,143) 325,866 State Grant Programs 6,204 746,189 256,005 11839 (3,415) 29,297 1,953,946 2,924,089 Mental Energy/ 6,204 $ 763,768 $ 132,893 $ Buildings Woodland Community & 2,019,278 $ 1,953,946 Health Coastal and Acres Regional Oil Spill Totals Center Management Day Care Land Sales Grounds Lighting Affairs Cleanup 1994 1993 $ $ _ $ _ $ $ $ 10,730 $ $ 1,268 $ 516,124 $ 449,443 575,809 57,150 314,726 220 - 997,572 1,066,250 _ _ 5,534 5,140 _ 506,938 506,938 423,911 654,811 19,384 488 697,533 654,864 36,021 298,923 - 349,663 361665 1,266,641 57,150 314,726 526,322 298,923 10,950 488 1,268 3,073,364 2,962,273 - 57,150 - - - - - - 57,150 44,200 1,573,833 314,726 - - - 1,888,559 1,675,705 - 190,698 472,035 7,373 488 - 868,497 1,102,612 _ _ _ - 34,637 34,637 109,158 _ - 133,554 202,856 12,030 - 12030 16,786 1,573,833 57,150 314,726 202,728 472,035 7,373 488 34,637 2,994,427 3,151,317 (307,192) 3231594 (173,112) 3,577 - (33.369) 78,937 (189,044) 246,030 50,000 - 296,030 352,820 (306,015) (309,635) (1,133,919) 246,030 (306,015) 50,000 (11605) (781,099) (61,162) 17,579 (123,112) 3,577 (33,369) 65,332 (970,143) 325,866 (20) 6,204 746,189 256,005 11839 (3,415) 29,297 1,953,946 2,924,089 $ 264,704 $ 20 $ 6,204 $ 763,768 $ 132,893 $ 16,416 $ 3,415 $ (4,072) $ 2,019,278 $ 1,953,946 45 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS -FIRE AREA 1 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 r EXHIBIT B -3 1994 Revenues: Property taxes Federal sources - Payment in lieu of taxes State sources - Shared revenue Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures: General administration: Fire chief Volunteers Fringe benefits Professional services Support costs Capital outlay Depreciation Total expenditures Excess (deficiency) of revenues over (under) expenditures Operating transfers out - Debt service fund Net operating transfers Excess (deficiency) of revenues and operating transfers in over (under) expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year 72,600 69,553 Variance - 65,919 8,000 8,752 Favorable 1993 Budget Actual (Unfavorable) Actual $ 182,500 $ 184,729 $ 2,229 $ 146,919 2,500 2,372 (128) 2,203 3,500 20,749 17,249 3,352 6,000 6,000 - 6,151 9,000 14,719 5,719 15,221 203,500 228,569 25,069 173,846 72,600 69,553 3,047 65,919 8,000 8,752 (752) 7,080 25,040 22,971 2,069 22,595 4,000 - 4,000 317,400 44,091 273,309 46,618 10,000 10,512 (512) 191,737 12,400 - 12,400 - 449,440 155,879 293,561 333,949 (245,940) 72,690 318,630 (160,103) (3,620) (3,620) (2,959) - (3,620) (3,620) (2,959) $ (245,940) 69,070 $ 315,010 (163,062) 288,857 451,919 $ 357,927 $ 288,857 I� f I t 1 fl I e I E,M 1 47 KO DIAK ISLAND BOROUGH EXHIBIT B4 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS -FIRE WOMEN'S BAY STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS ' AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 1994 Variance - Favorable 1993 Budget Actual (Unfavorable) Actual Revenues: Property taxes $ 37,500 $ 39,005 $ 1,505 $ 37,467 State sources: Shared revenue 1,000 749 (251) 1,008 Grant 3,312 - (3,312) - Licenses, permits, fees and other local revenues 8,500 6,850 (1,650) 5,705 Total revenues 50,312 46,604 (3,708) 44,180 Expenditures: General administration: Personnel services Contracted services 1,700 - - - 1,700 - - 300 Fringe benefits 8,200 6,931 1,269 6,084 Support costs 31,450 29,461 1,989 24,000 Capital outlay 8,962 5,632 3,330 11,505 Total expenditures 50,312 42,024 8,288 41,889 1 Excess of revenues over expenditures $ - 4,580 $ (11,996) 2,291 Fund balance at beginning of year 32,080 29,789 ' Fund balance at end of year $ 36,660 $ 32,080 1 47 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS -ROAD MONASHKA BAY STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED NNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 EXHIBIT B -5 I Expenditures: 1994 Capital outlay: Variance - Favorable 1993 Budget Actual (Unfavorable) Actual Revenues: 229 (129) 767 Property taxes $ 21,600 $ 22,720 $ 1,120 $ 22,468 State sources - Shared revenue 3,200 2,709 (491) 3,037 Total revenues 24,800 25,429 629 25,505 Expenditures: Capital outlay: Services district maintenance: Personnel services 100 229 (129) 767 Snow removal 13,500 6,223 7,277 6,715 Road grading 11,000 5,742 5,258 2,765 Support goods and services 200 (40) 240 307 Total expenditures 24,800 12,154 12,646 10,554 Excess of revenues over expenditures $ - 13,275 $ 13,275 14,951 Fund balance at beginning of year 26,044 11,093 Fund balance at end of year $ 39,319 $ 26,044 48 1' e 1 1 r KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD DISTRICT 1 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTAL FOR 1993 EXHIBIT B-6 1994 Revenues: Property taxes Federal sources - Payment in lieu of taxes State sources - Shared Revenue Total revenues Expenditures: Capital outlay: Services district maintenance: Personnel services Repairs and maintenance Snow removal Road grading Support goods and services Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance at beginning of year Fund balance at end of year 6,400 4,601 Variance - 4,990 - 64 Favorable 1993 Budget Actual (Unfavorable) Actual $ 154,000 $ 172,447 $ 18,447 $ 153,740 3,000 3,162 162 2,937 10,000 11,170 1,170 10,594 167,000 186,779 19,779 167,271 6,400 4,601 1,799 4,990 - 64 (64) - 94,000 26,930 67,070 48,263 84,900 15,990 68,910 52,997 1,700 855 845 13,904 - - - 3,500 187,000 48,440 138,560 123,654 L-20-10-0-01 138,339 $ 158,339 43,617 89,124 45,507 $ 227,463 $ 89,124 ELI KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD DISTRICT 2 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 EXHIBIT B -7 1994 Revenues: Property taxes Total revenues Expenditures: Capital outlay: Services district maintenance Total expenditures Excess of revenues over expenditures Fund balance at beginning of year Fund balance at end of year Variance - Favorable Budget Actual (Unfavorable) $ 1,620 $ 3,086 $ 1,466 1,620 3,086 1,466 $ 1,620 3,086 $ 1,466 $ 3,086 50 KODIAK ISLAND BOROUGH EXHIBIT 13-8 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD WOMEN'S BAY STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 t Revenues: Property taxes State sources - Shared revenue Licenses, permits, fees and other local revenues Total revenues Expenditures: Capital outlay: Personnel services Snow removal Road grading Repairs and maintenance Services district maintenance Total expenditures Excess of revenues over expenditures Fund balance at beginning of year Fund balance at end of year 141,781 96,395 $ 176,160 $ 141,781 51 1994 Variance - Favorable 1993 Budget Actual (Unfavorable) Actual $ 69,150 $ 78,124 $ 8,974 $ 75,087 14,000 13,209 (791) 14,639 20,000 10,000 (10,000) 20,000 103,150 101,333 (1,817) 109,726 1,500 1,354 146 942 19,000 17,388 1,612 23,643 21,000 9,184 11,816 10,075 39,000 38,966 34 27,999 22,650 62 22,588 1,681 103,150 66,954 36,196 64,340 $ - 34,379 $ 34,379 45,386 141,781 96,395 $ 176,160 $ 141,781 51 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS -ROAD BAY VIEW STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 EXHMrr B -9 1994 Revenues: Property taxes State sources - Shared revenue Total revenues Expenditures: Capital outlay: Services district maintenance: Personnel services Snow removal Road grading Support goods and services Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance at beginning of year Fund balance at end of year - 363 (363) Variance - 2,000 1,866 134 2,234 Favorable 1993 Budget Actual (Unfavorable) Actual $ 3,100 $ 4,015 $ 915 $ 3,882 900 1,081 181 1,124 4,000 5,096 1,096 5,006 - 363 (363) 827 2,000 1,866 134 2,234 2,000 3,777 (1,777) 1,100 - - - 147 4,000 6,006 (2,006) 4,308 $ - (910) $ (910) 698 3,095 2,397 $ 2,185 $ 3,095 52 KODIAK ISLAND BOROUGH EXHIBIT B -10 SPECIAL REVENUE FUNDS MENTAL HEALTH CENTER STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS 1 AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 1994 Variance - Favorable 1993 1 Budget Actual (Unfavorable) Actual Revenues: State sources: I Health, Social and Community Services Program $ 575,200 S 575,200 $ $ 603,500 Division of Family and Youth Services - - - 1,117 Other Licenses, permits, fees and other local revenues: - 609 609 - 1,359 Organization user fees 386,800 380,748 (6,052) 355,339 Individual user fees 298,000 274,063 (23,937) 233,105 Investments and property: Rental fees 36,000 36,000 - 36,000 Interest 200 21 (179) 207 Total revenues 1,296,200 1,266,641 (29,559) 1,230,627 Expenditures: Health and sanitation: Mental health program: Personnel services 1,435,030 1,213,053 221,977 1,162,670 Travel 39,950 37,076 2,874 27,148 Facility 79,900 77,545 2,355 74,560 Supplies 27,450 20,831 6,619 23,284 Equipment 13,900 11,468 2,432 14,754 Capital outlay 43,680 28,234 15,446 29,535 1 Other 101,590 185,626 (84,036) 73,009 Total expenditures 1,741,500 1,573,833 167,667 1,404,960 Excess (deficiency) of revenues over (under) expenditures (445,300) (307,192) 138,108 (174,333) Operating transfers in 245,000 246,030 (1,030) 241,280 1 Operating transfers out (8,069) Net operating transfers 245,000 246,030 (1,030) 233,211 1 Excess (deficiency) of revenues and operating transfers in over (under) expenditures and operating transfers out $ (200,300) (61,162) $ 139,138 58,878 Fund balance at beginning of year 325,866 266,988 Fund balance at end of year $ 264,704 $ 325,866 53 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS MENTAL HEALTH CENTER SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 199 EXHIBIT B -11 Expenditures - Health, Social and Community Services Program: Personnel Travel Facility Supplies Equipment Capital outlay Other Expenditures - Division of Family and Youth Services: Personnel Facility Supplies Other - - - 1,117 Total expenditures $ 1,741,500 $ 1,573,833 $ 167,667 $ 1,404,960 54 1994 Variance - Favorable 1993 Budget Actual (Unfavorable) Actual $ 1,435,030 $ 1,213,053 $ 221,977 $ 1,162,482 39,950 37,076 2,874 27,148 79,900 77,545 2,355 74,135 27,450 20,831 6,619 23,106 13,900 11,468 2,432 14,754 43,680 28,234 15,446 29,535 101,590 185,626 (84,036) 72,683 1,741,500 1,573,833 167,667 1,403,843 - - - 188 - - - 425 - - - 178 - - - 326 - - - 1,117 Total expenditures $ 1,741,500 $ 1,573,833 $ 167,667 $ 1,404,960 54 KODIAK ISLAND BOROUGH EXHIBIT B -12 SPECIAL REVENUE FUNDS ENERGY /COASTAL MANAGEMENT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 1994 Revenues: State sources - Grants Total revenues Expenditures: Planning and community development: Planning and zoning Total expenditures Excess of revenues over expenditures Fund balance at beginning of year Fund balance at end of year Variance - Favorable 1993 Budget Actual (Unfavorable) Actual $ 57,950 $ 57,150 $ ( 800) $ 44,200 57,950 57,150 (800) 44,200 57,950 57,150 800 44,200 57,950 57,150 800 44,200 $ - - $ - - (20) $ (20) (20) $ (20) 55 KODIAK ISLAND BOROUGH EXHIBIT B -13 SPECIAL REVENUE FUNDS DAY CARE STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 1994 Revenues: State sources - Grants Total revenues Expenditures: Health and sanitation: Day care payments Total expenditures Excess of revenues over expenditures Fund balance at beginning of year Fund balance at end of year Variance - Favorable 1993 Budget Actual (Unfavorable) Actual $ 340,160 $ 314,726 $ (25,434) $ 273,121 340,160 314,726 (25,434) 273,121 340,160 314,726 25,434 270,745 340,160 314,726 25,434 270,745 $ - - $ - 2,376 6,204 3,828 $ 6,204 $ 6,204 56 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS LAND SALES STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 EXHIBIT B-14 1994 Revenues: Land sale proceeds Licenses, permits, fees and other local revenues: Gravel sales Other Investment income Total revenues Expenditures: General administration: Personnel services Contracted services Support goods and services Capital outlay Interest Total expenditures Excess of revenues over expenditures Operating transfers out - Capital projects fund Debt service fund Excess (deficiency) of revenues and operating transfers in over (under) expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year 126,070 123,709 Variance- 115,857 15,500 37,496 Favorable 1993 Budget Actual (Unfavorable) Actual $ 423,800 $ 506,938 $ 83,138 $ 423,911 60,000 19,384 (40,616) 24,901 200 - (200) 5,250 40,000 - (40,000) 24,778 524,000 526,322 2322 478,840 126,070 123,709 2,361 115,857 15,500 37,496 (21,996) 7,181 50,230 29,493 20,737 26,704 27,330 9,706 17,624 16,786 - 2,324 (2,324) - 219,130 202,728 16,402 166,528 304,870 323,594 18,724 312,312 (304,870) (304,870) - (1,122,891) (1,145) (1,145) - (304,870) (306,015) (1,145) (1,122,891) $ - 17,579 $ 17,579 (810,579) 746,189 1,556,768 $ 763,768 $ 746,189 57 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS BUILDINGS AND GROUNDS STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED NNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 EXHIBIT B -15 1994 Revenues: Investments and property: Rental Interest income Total revenues Expenditures: General administration: School buildings Borough building Apartments Parks operation and maintenance Total expenditures Excess (deficiency) of revenues over (under) expenditures Operating transfers in - General fund Net operating transfers Excess (deficiency) of revenues and operating transfers in over (under) expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year Variance - Favorable 1993 Budget Actual (Unfavorable) Actual $ 270,410 $ 292,410 $ 22,000 $ 274,606 13,030 6,513 (6,517) 11,853 283,440 298,923 15,483 286,459 229,120 180,152 48,968 248,690 318,860 251,149 67,711 263,066 27,460 33,962 (6,502) 33,402 18,000 6,772 11,228 23,424 593,440 472,035 121,405 568,582 (310,000) (173,112) 136,888 (282,123) 50,000 50,000 - 100,000 50,000 50,000 - 100,000 $ (260,000) (123,112) $ 136,888 (182,123) 58 256,005 438,128 $ 132,893 $ 256,005 KODIAK ISLAND BOROUGH EXHIBIT B -16 SPECIAL REVENUE FUNDS WOODLAND ACRES LIGHTING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 59 1994 Variance - Favorable 1993 Budget Actual (Unfavorable) Actual Revenues: Property taxes $ 7,380 $ 10,730 $ 3,350 9,880 State sources - Shared revenue - 220 220 41 Total revenues 7,380 10,950 3,570 9,921 Expenditures: General administration: Personnel services 124 124 - - Electricity 4,000 4,235 (235) 3,148 Capital outlay 3,256 3,014 242 - Total expenditures 7,380 7,373 7 3,148 Excess of revenues over expenditures $ - 3,577 $ 3,577 6,773 Fund balance at beginning of year 12,839 6,066 Fund balance at end of year $ 16,416 $ 12,839 59 KODIAK ISLAND BOROUGH EXHIBIT B -17 SPECIAL REVENUE FUNDS COMMUNITY AND REGIONAL AFFAIRS STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 1994 Revenues: Other Total revenues Expenditures: General administration: Support goods and services Total expenditures Excess (deficiency) of revenues and operating transfers in over (under) expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year Variance - Favorable 1993 Budget Actual (Unfavorable) Actual $ 7,000 $ 488 $ (6,512) $ 4,413 7,000 488 (6,512) 4,413 7,000 7,000 .1 488 6,512 5,302 488 6,512 5,302 - $ - (889) (3,415) (2,526) $ (3,415) $ (3,415) KODIAK ISLAND BOROUGH EXHIBIT B-18 SPECIAL REVENUE FUNDS OIL SPILL CLEANUP SCHEDULE OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 Project Project Project Variance- to Date to Date 1994 to Date Favorable Budget 1993 Actual 1994 (Unfavorable) Revenues: Exxon reimbursements $ 2,000,000 $ 1,309,309 $ 1,268 $ 1,310,577 (689,423) State sources: Department of Environmental Conservation grants 2,560,000 2,337,280 - 2,337,280 (222,720) Department of Community and Regional Affairs grants 13,600 13,600 - 13,600 - Other sources - 2,670 - 2,670 2,670 Total revenues 4,573,600 3,662,859 1,268 3,664,127 (909,473) Expenditures: Oil spill cleanup: Personal services 555,170 554,886 24,338 579,224 (24,054) Fringe benefits 9,330 76,364 8,150 84,514 (75,184) Contracted services - 111,867 1,186 113,053 (113,053) Support goods and services 2,262,600 1,562,111 963 1,563,074 699,526 Capital outlay - 30,373 - 30,373 (30,373) Legal fees 10,000 169,806 - 169,806 (159,806) Disbursements to villages 1,936,500 1,139,695 - 1,139,695 796,805 Total expenditures 4,773,600 3,645,102 34,637 3,679,739 1,093,861 Operating transfers in - 11,540 - 11,540 11,540 Net operating transfers - 11,540 - 11.540 11,540 Excess (deficiency) of revenues and operating transfers in over (under) expenditures and operating transfers out $ (200,000) 29,297 (33,369) (4,072) $ 195,928 Fund balance at beginning of year - 29,297 - Fund balance at end of year $ 29,297 $ (4,072) $ (4,072) m 1 F-1 1 J DEBT SERVICE FUNDS I 1 i1 I 1 1 a Debt Service Funds are used to account for the payment of principal, interest and related fees on all bonded debt except for special assessment bonded debt accounted for in proprietary funds. KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS COMBINING BALANCE SHEET NNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 EXHIBIT C -1 Totals Bond Other 1994 1993 ASSETS Equity in central treasury Temporary cash investments Due from School District Due from General Fund Accrued interest receivable LIABILITIES AND FUND BALANCES Accounts payable Total liabilities FUND BALANCES: Unreserved: Designated for subsequent year expenditures $ 73,803 $ 183,266 $ 257,069 $ 708,789 3,676,440 - 3,676,440 5,255,089 100,325 - 100,325 - 250,000 50,000 300,000 9,000 32,991 - 32,991 99,846 $ 4,133,559 $ 233,266 $ 4,366,825 $ 6,072,724 $ - $ - $ - $ 263 - - - 263 4,133,559 233,266 4,366,825 6,072,461 $ 4,133,559 $ 233,266 $ 4,366,825 $ 6,072,724 63 KODIAK ISLAND BOROUGH EXHIBIT C -2 DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 s` Totals s Bonds Other 1994 1993 Revenues: Investments and property: Interest income Miscellaneous Expenditures: Debt service: Principle Interest Fiscal agent fees Other Total expenditures Deficiency of revenues under expenditures Other financing sources: Proceeds of general obligation bonds Transfer from component unit - School District Operating transfers in: General Fund Special revenue funds: Mental Health Center Land sales Fire Service District Area 1 Capital projects funds Total other financing sources Other financing uses: Operating transfers out: General Fund Special revenue funds: Mental Health Center Capital projects funds Total other financing uses Net other financing sources Excess (deficiency) of revenues and operating transfers in over (under) expenditures and operating transfers out Fund balance at be ginnin g of year Fund balance at end of year $ 182,078 $ - $ 182,078 $ 244,465 1,675,000 - - - 5,000 5,789 1,680,789 182,078 - 182,078 249,465 1,557,379 (1,713,612) 7,976 (1,705,636) (675,346) , 1,775,833 - 1,775,833 1,745,833 233,266 633,301 - 633,301 734,515 2,373 54,496 - - 2,373 54,496 1,842 - 2,466,003 - 2,466,003 2,482,190 I (2,283,925) - (2,283,925) (2,232,725) i 169,748 - 169,748 - , 2,075,565 - 2,075,565 2,473,713 - 9,000 9,000 17,502 - - - 8,069 - 1,145 1,145 5,433 - 3,620 3,620 2,959 - 525,000 2,245,313 13,765 2,259,078 3,032,676 4,759 4,759 - - 1,030 1,030 - 1,675,000 - 1,675,000 1,475,297 1,675,000 5,789 1,680,789 1,475,297 570,313 7,976 578,289 1,557,379 (1,713,612) 7,976 (1,705,636) (675,346) 5,847,171 225,290 6,072,461 6,747,807 $ 4,133,559 $ 233,266 $ 4,366,825 $ 6,072,461 64 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS BONDS STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 EXHIBIT C -3 M " 1994 Variance - Favorable 1993 Budget Actual (Unfavorable) Actual Revenues: Investments and property: Interest income $ 160,000 $ 182,078 $ 22,078 $ 244,465 Miscellaneous - - - 5,000 160,000 182,078 22,078 249,465 Expenditures: Debt service: Principle 1,775,840 1,775,833 7 1,745,833 Interest 640,000 633,301 6,699 734,515 Fiscal agent fees 5,000 2,373 2,627 1,842 Other 287,700 54,496 233,204 - Total expenditures 2,708,540 2,466,003 242,537 2,482,190 Excess (deficiency) of revenues over(under)expenditures (2,548,540) (2,283,925) 264,615 (2,232,725) Other financing sources (uses): Proceeds of general obligation bonds - 169,748 169,748 - Transfer from component unit - School District 2,070,000 2,075,565 5,565 2,473,713 Operating transfers in: Capital projects funds - - - 525,000 Operating transfers out: Capital projects fund (1,675,000) (1,675,000) - (1,475,297) Net other financing sources 395,000 570,313 175,313 1,523,416 Excess (deficiency) of revenues and other financing sources in over (under) expenditures and other financing used $ (2,153,540) (1,713,612) $ 439,928 (709,309) Fund balance at beginning of year 5,847,171 6,556,480 Fund balance at end of year $ 4,133,559 $ 5,847,171 M " KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS OTHER STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARAT TOTALS FOR 1993 EXTUM C-4 Expenditures: Termination reserve Total expenditures Operating transfers in: General Fund Special revenue funds: Mental Health Center Land Sale Fire Service District Area 1 Total operating transfers in Operating transfers out: General Fund Special revenue fund: Mental Health Center Total operating transfers out Net operating transfers Excess of expenditures over net operating transfers Fund balance at beginning of year Fund balance at end of year M . 225,290 191,327 $ 233,266 $ 225,290 1994 Variance - Favorable 1993 Budget Actual (Unfavorable) Actual $ 9,000 $ - $ 9,000 $ - 9,000 - 9,000 - 9,000 9,000 - 17,502 - - - 8,069 - 1,145 1,145 5,433 - 3,620 3,620 2,959 9,000 13,765 4,765 33,963 - 4,759 (4,759) - 1,030 (1,030) - - 5,789 (5,789) - 9,000 7,976 (1,024) 33,963 $ - 7,976 $ 7,976 33,963 M . 225,290 191,327 $ 233,266 $ 225,290 1 1 f 1 CAPITAL PROJECTS FUNDS 1 Capital Projects Funds are used to account for general govern- ment capital projects financed by general obligation bond issues, intergovernmental grants, contributions from other funds and interest income, exclusive of projects financed by proprietary funds. 1 J L I I � fl I This page intentionally left blank. t it �J 1 fl 1 L 1 67 � KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 68 Various School Borough Bond Projects Improvements ASSETS Equity in central treasury $ 22,802 $ 6,202 Temporary investments 1,661,056 9,471,909 Receivables: State of Alaska - - Federal Government 815,472 - Accrued interest - 73,370 Due from other funds - - Total assets $ 2,499,330 $ 9,551,481 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ 457,907 $ 190,092 Retainages payable 208,995 - Due to other funds 375,000 15,000 Deferred revenue - - Total liabilities 1,041,902 205,092 FUND BALANCES: Reserved for encumbrances 1,221,678 442,465 Unreserved: Designated for subsequent years expenditures 235,750 8,903,924 Total fund balance 1,457,428 9,346,389 $ 2,499,330 $ 9,551,481 68 EXHIBIT D -1 Hospital State School Bond Capital Major Totals Improvements Grants Maintenance 1994 1993 $ 5,084 $ 20,024 $ 938,125 $ 992,237 $ 47,291 8,971,909 - 1,857,020 21,961,894 5,025,201 - 56,283 - 56,283 105,685 _ - - 815,472 182,240 73,370 - 44,133 190,873 117,906 350,000 - 40,000 390,000 614,000 $ 9,400,363 $ 76,307 $ 2,879,278 $ 24,406,759 $ 6,092,323 $ 6 $ 24,892 $ - $ 672,897 $ 559,215 1,432 - 210,427 44,154 - 390,000 614,000 - 92,958 - 92,958 119,113 6 119,282 - 1,366,282 1,336,482 1,808,318 6,668 - 3,479,129 1,748,190 7,592,039 (49,643) 2,879,278 19,561,348 3,007,651 9,400,357 (42,975) 2,879,278 23,040,477 4,755,841 $ 9,400,363 $ 76,307 $ 2,879,278 $ 24,406,759 $ 6,092,323 I S C �a • (, t 4 - m KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 Excess (deficiency) of revenues and operating transfers in over (under) expenditures and operating transfers out (396,010) 8,952,390 Fund balances at beginning of year 1,853,438 393,999 Fund balances at end of year $ 1,457,428 $ 9,346,389 WK Various School Borough Bond Projects Improvements Revenues: State sources $ - $ _ Federal sources 2,448,030 - Licenses, permits, fees and other local revenues 106,060 - Investments and property 45,757 179,730 Asbestos settlement - _ Roof claim settlement - - Total revenues 2,599,847 179,730 Expenditures: Capital improvements: Schools 4,438,830 708,749 General 414,027 - Total expenditures 4,852,857 708,749 Excess (deficiency) of revenues over (under) expenditures (2,253,010) (529,019) Operating transfers in 1,857,000 - Bond proceeds - 9,481,409 Operating transfers out - - Net operating transfers 1,857,000 9,481,409 Excess (deficiency) of revenues and operating transfers in over (under) expenditures and operating transfers out (396,010) 8,952,390 Fund balances at beginning of year 1,853,438 393,999 Fund balances at end of year $ 1,457,428 $ 9,346,389 WK EXHIBIT D -2 Hospital State School 256,126 - (71,482) Bond Capital Major Totals Improvements Grants Maintenance 1994 1993 $ - $ 525,753 $ - $ 525,753 $ 1,048,796 - - - 2,448,030 213,794 - - - 106,060 355 161,011 188 106,522 493,208 209,893 - - - - 29,108 - - - - 6,833 161,011 525,941 106,522 3,573,051 1,508,779 - - - 5,147,579 1,939,049 46,874 497,434 - 958,335 1,369,819 46,874 497,434 - 6,105,914 3,308,868 114,137 28,507 106,522 (2,532,863) (1,800,089) - - 304,870 2,161,870 2,667,755 9,286,220 - - 18,767,629 - - - (112,000) (112,000) (611,540) 9,286,220 - 192,870 20,817,499 2,056,215 9,400,357 28,507 299,392 18,284,636 256,126 - (71,482) 2,579,886 4,755,841 4,499,715 $ 9,400,357 $ (42,975) $ 2,879,278 $ 23,040,477 $ 4,755,841 71 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS EXHIBIT D -3 APPROPRIATIONS EXPENDITURES ENCUMBRANCES PROJECT TOTAL TOTAL UNEXPENDED CURRENT UNENCUMBERE NO- PROJECT STATUS PRIOR 1994 APPROPRIATIONS PRIOR 1994 EXPENDITURES BALANCE ENCUMBRANCES BALANCE Capital Projects - Education: 2 410 -404 Work ofArt - Auditorium Open S 33,090 $ - $ 33,090 S 13,500 S 5,000 $ 18,500 $ 14,590 $ - S 14,590 6 410.415 Asbestos Removal Program Open 75,000 - 75,000 63,471 - 63,471 11,529 - 11,529 18 410 -431 East Elementary Siding/Repair Complete 45,005 (45,005) - - - - - - - 19 410 -432 East Elementary Lighting Complete 23,415 (23,415) 20 410 -433 East Elementary Storm Drain Complete 12,689 (12,689) 23 410 -436 Ouanlde Roof Repair Open 95,000 (83,146) 11,854 11,598 255 11,854 24 410 -437 Port Lions Shop Porch Dormers Complete 35,332 (35,332) - - - - 25 410 -438 Port Lions Paint Complete 29,500 (29,500) - - - - - - - 28 410 -441 Old Harbor School Repair Open 525,000 - 525,000 460,586 37,028 497,614 27,386 - 27,386 33 410 -446 High School Roof Maintenance Open 30,000 15,000 45,000 11,765 27,033 38,798 6,202 - 6,202 34 410 -447 Main Elementary Roof Complete 648,827 (648,827) - - - - - 35 410 -448 Chinisk School Water System Open 20,000 - 20,000 327 16,094 16,421 3,579 - 3,579 37 410 -450 Ouanlde School Paint Complete 27,348 (27,348) - - - - - 38 410 -451 High School Alteration It Complete 615,540 (615,540) 62 410 -454 Larsen Bay School AHU Complete 59,616 (59,616) - - - - - - - 67 410 -457 High School Alteration III Open 1,710,324 452,000 2,162,324 565,354 1,541,066 2,106,420 55,904 51,450 4,454 70 410 -458 Peterson Elem/Fed Open 3,740,690 - 3,740,690 213,794 2,448,030 2,661,824 1,078,866 1,170,228 (91,362) 78 410.462 High School Library Roof Open - 35,000 35,000 - - 35,000 - 35,000 80 410.464 High School Parking Lot Repair Open 5,000 5,000 2,645 2,645 2,355 2,355 84 410 -468 Ourinlde Boiler Complete - 170,000 170,000 170,122 170,122 (122) - (122) 39 420 -501 Peterson Elementary Open 509,860 70,140 580,000 65,968 191,853 257,821 322,179 6,967 315,212 N 41 420 -503 Landscaping - Port Lions Open 15,000 - 15,000 1 1,179 2,185 12,815 - 12,815 88 410 -472 High School Phase IV Open 750,000 750,000 191,556 191,556 558,444 558,444 90 430.634 High School PhaselV /Grant Open 240,588 240,588 - - 240,588 - 240,588 93 420 -504 Northstar Elementary Open 8,500,000 8,500,000 415,148 415,148 8,084,852 381,705 7,703,147 94 420 -505 Ouanlde School Remodel Open 1,200,000 1,200,000 100,569 100,569 1,099,431 53,793 1,045,638 Total Education 8,251,236 9,857,310 18,108,546 1,407,369 5,147,578 6,554,948 11,553,598 1,664,143 9,889,455 Capital Projects - Health: 1 410 -402 Hospital Site Work Open 123,810 - 123,810 - 47,874 47,874 75,936 - 75,936 15 410 -428 Hospital Oil Spill Open 190,200 190,200 184,831 800 185,631 4,569 4,569 30 410 -443 Hospital Hot Water Tanks Complete 108,031 (108,031) - - - - - - 83 410 -467 Hospital Computer Open - 35,000 35,000 - 20,715 20,715 14,285 14,285 46 430 -605 Hospital Design & Development Complete 1,000,000 1,000,000 1,000,000 - 1,000,000 - - 50 430 -609 Hospital Equipment Complete 50,000 (50,000) - 4 410 -407 Hospital Studies Complete 96,000 (96,000) - - - - - - 75 410 -459 Hospital Boiler Replace Complete 200,000 (198,000) 2,000 1,951 - 1,951 49 49 92 430 -631 Hospital Repairs Open - 275,000 275,000 - 267,330 267,330 7,670 - 1,670 95 425 -540 Hospital Remodel Open 9,500,000 9,500,000 46,874 46,874 9,453,126 1,808,318 7,644,808 Total Health 1,768,041 9,357,969 11,126,010 1,186,782 383,593 1,570,375 9,555,635 1,808,318 7,747,317 Capital Projects - Roads: 8 410 -418 Chiniak Subdivision Open 389,770 - 389,770 251,900 625 252,525 137,245 - 137,245 42 430 -601 Lakeside Improvement Complete 809,990 809,990 807,989 2,001 809,990 - - 43 430 -602 Sharatin Road Complete 841,320 (841,320) - - 74 410 -455 Street Signs Open 20,000 20,000 966 18,705 19,671 329 Total Roads 2,061,080 (841,320) 1,219,760 1,060,855 21,331 1,082,186 137,574 137,245 continued KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS Y 0141 �� Yjc,r- / EXHIBIT D-3- continued APPROPRIATIONS EXPENDITURES ENCUMBRANCES PROJECT TOTAL TOTAL UNEXPENDED CURRENT UNENCUMBERE NO PROJECT STATUS PRIOR 1994 APPROPRIATIONS PRIOR 1994 EXPENDITURES BALANCE ENCUMBRANCES BALANCE Capital Projects - Other: 3 410.406 Smokey's Clean Up Open 136,000 130,000 266,000 125,923 140,973 266,896 (896) (896) 9 410 -419 King Crab - RFP Complete 77,929 (77,929) - - - - - - - 11 410 -423 Drainage Plan Air Photos Open 31,050 31,050 20,412 - 20,412 10,638 10,638 12 410.425 Dumpster Pads Open 24,500 - 24,500 11,132 225 11,357 13,143 - 13,143 14 410.427 New Computer Acquisition Complete 641,300 641,300 641,300 641,300 - 16 410.429 New Parks Open 80,000 30,000 110,000 33,599 691 34,290 75,710 - 75,710 17 410.430 Smokey's Fence Open 60,000 (60,000) - - - - - - - 26 410.439 Borough Offices Paint Complete 12,131 (12,131) 27 410 -440 Borough Buildings Paint Complete 34,428 (34,428) - - - - - - 59 410 -452 Cold Weather Training Review Complete 13,100 (13,100) - - - 61 410.453 KIB Apts. Fire Code Upgrade Open 184,000 (30,000) 154,000 105,788 46,030 151,SI8 2,182 2,182 66 410.456 Selief Lane Drainage Open 35,000 35,000 - - 35,000 35,000 76 410 -460 KIBIRed Cross Upgrade Open - 70,146 70,146 - 70,328 70,328 (182) - (182) 48 430 -607 Salome Creek Open 520,000 - 520,000 507,373 6,709 514,082 5,918 - 5,918 54 430.613 SeliefLanerVon Scheele Way Open 75,000 - 75,000 - - - 75,000 - 75,000 56 430 -615 LEPC Grant Complete 11,015 (11,015) - - - - - - - 58 430 -616 Waste Characterization Complete 51,000 (51,000) 63 430 -618 Emergency Medical Equipment Complete 5,000 (5,000) 64 430 -619 CAP Hangar I Complete 60,000 (60,000) - - 73 430.623 CAP Hangar It Complete 50,000 50,000 23,587 26,413 50,000 69 430 -620 Rural Development Assistance Complete 30,000 - 30,000 30,000 - 30,000 - - - 71 430 -621 Solid Waste Disposal Open 200,000 - 200,000 2,256 194,190 196,446 3,554 6,668 (3,114) 72 430 -622 Bayside Fire Station Open 150,000 - 150,000 - 160 160 149,840 - 149,840 79 410 -463 Crab Analog Report Open - 10,000 10,000 - - - 10,000 - 10,000 85 410.471 Village Metals Removal Open 60,000 60,000 66 66 59,934 59,934 86 410 -470 KIB Oil Tank Replacement Open 100,000 100,000 66,996 66,996 33,004 33,004 87 430632 Community Support Facility Open 350,000 350,000 - - 350,000 350,000 89 430 -633 DHSS/Planning Grant Open - 40,000 40,000 - 632 632 39,368 - 39,368 Total - Capital Projects Other 2,481,453 395,543 2,876,996 1,501,370 553,413 2,054,151 822,845 6,668 816,177 Total All Capital Projects $ 14��61,810 SS 18 S 33, S 5,156,376 S 6,105 S 11,2 S 22®69® $ 3 $ 18,590,194 Capital Projects -Uti ifies: 60 550 -751 Project 89 -X Open 425,249 - 425,249 36,574 150,884 187,458 237,791 - 237,791 65 550 -752 SpruceCape Water Replace Open 65,000 - 65,000 2,978 378 3,356 61,644 - 61,644 68 550 -753 Cold Weather Training Constr. Complete 705,000 705,000 591,327 591,327 113,673 113,673 Total Utility Projects 1,195,249 1,195,249 630,879 151,262 782,141 413,108 413,108 Total Capital/Utility Projects $ 15 757,059 S 18,769,5 $ 34,5 $ 5 S 6,257,1 S 12801 S 22,482, S 3,479,129 S 19,0® l J I L' 1 1 t ENTERPRISE FUNDS 1 Enterprise Funds are used to account for Borough operations that are financed and operated in a manner similar to private business enterprises. The intent of the Borough is that the costs (expenses, including depreciation) of providing these services to the general public on a continuing basis are financed or recovered primarily through user charges. L! 1 1 F, KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING BALANCE SHEET NNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 Total assets S 2,428,634 S 5,528,281 S 9,154,365 S 17,111,280 S 17,475,865 76 Sanitary Water Sewer Totals Services Utility Utility 1994 1993 ASSETS CURRENT ASSETS: Equity in central treasury S 7,801 S 250,485 S 24,326 S 282,612 S 6,813 7,801 250,485 24,326 282,612 6,813 Accounts receivable 228,248 43,522 66,135 337,905 266,311 Less allowance for doubtful receivables - (6,901) (19,663) (26,564) (26,564) Net receivables 228,248 36,621 46,472 311,341 239,747 Due from other funds - - 240,000 240,000 232,000 Total current assets 236,049 287,106 310,798 833,953 478,560 Assets whose use is limited: Equity in central treasury - 63,414 63,414 126,828 256 Temporary investments 250,000 250,000 500,000 1,008,812 Total restricted assets 313,414 313,414 626,828 1,009,068 Fixed assets: Unclassified utility plant in service 2,381,371 6,012,160 10,211,886 18,605,417 17,918,635 Equipment 324,353 - 3,172 327,525 325,427 2,705,724 6,012,160 10,215,058 18,932,942 18,244,062 Less accumulated depreciation (513,139) (1,084,399 (1,684,905) (3,282,443) (2,906,252) 2,192,585 4,927,761 8,530,153 15,650,499 15,337,810 Construction, work -in- progress - - - 650,427 Net fixed assets 2,192,585 4,927,761 8,530,153 15,650,499 15,988,237 Total assets S 2,428,634 S 5,528,281 S 9,154,365 S 17,111,280 S 17,475,865 76 1 EXHIBIT E -1 Accumulated amortization Sanitary (508,426) (1,084,337) (1,683,586) (3,276,349) (2,893,308) Services Utility Utility 1994 1993 Net contributions in aid of construction 1,924,017 4,893,156 8,493,704 15,310,877 15,662,698 Retained earnings: � Accounts payable S 104,119 S ti�G C 77,560 S (137,004) 543,429 578,516 984,941 1,194,535 - 18,900 28,165 Accrued compensation 15,353 Total retained ea gs (137,004) 543,429 578,516 984,941 1,194,535 - 11,446 Deferred revenues - - - Total fund equities �� Lv 1,787,013 5,436,585 9,072,220 16,295,818 16,857,233 40,300 L 3c 240,000 - - 240,000 241,000 Total current liabilities 360,172 91,696 82,145 534,013 618,632 Accrued landfill closure and postclosure costs Total liabilities and fund equities S 2,428,634 S 5,528,281 S 9,154,365 S 17,111,280 S 17,475,865 77 Sanitary Water Sewer Totals Services Utility Utility 1994 1993 LIABILITIES AND FUND EOUITIES CURRENT LIABIMMS: Accounts payable S 104,119 S 68,071 S 77,560 S 249,750 S 158,198 Customer deposits 700 18,200 - 18,900 28,165 Accrued compensation 15,353 - 15,353 18,233 Other accrued liabilities - - 11,446 Deferred revenues - - - - 121,290 Due to City of Kodiak - 5,425 4,585 10,010 40,300 Due to other funds 240,000 - - 240,000 241,000 Total current liabilities 360,172 91,696 82,145 534,013 618,632 Accrued landfill closure and postclosure costs 281,449 - - 281,449 - Total liabilities 641,621 91,696 82,145 815,462 618,632 FUND EQUITIES: Contributions in aid of construction: City of Kodiak - 189,166 40,000 229,166 229,166 State of Alaska 2,412,453 5,482,630 9,630,603 17,525,686 17,525,686 Federal Government - 277,135 209,554 486,689 258,106 Other 19,990 28,562 297,133 345,685 543,048 2,432,443 5,977,493 10,177,290 18,587,226 18,556,006 Total liabilities and fund equities S 2,428,634 S 5,528,281 S 9,154,365 S 17,111,280 S 17,475,865 77 t 78 KODIAK ISLAND BOROUGH EXHIBrr E -2 ENTERPRISE FUNDS STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 Sanitary Water Sewer Totals Services Utility Utility 1994 1993 Operating revenues: $ 386,666 Water sales $ $ 424,457 $ $ 424,457 Sewer service charges - - 525,345 525,345 429,760 Refuse collection 1,193,712 - - 1,193,712 1,269,525 Sanitary services fees 434,098 - 434,098 380,195 Installation charges 852 852 2,154 Other 18,400 5,223 3,599 27,222 37,576 1,646,210 430,532 528,944 2,605,686 2,505,876 Operating expenses: Personnel services 321,833 8,644 6,554 337,031 338,261 Waste collection 1,050,821 - - 1,050,821 1,062,774 Purchased water and sewer treatment - 325,853 395,888 721,741 589,513 Contracted services 48,542 - - 48,542 82,049 Repairs and maintenance 27,434 31,057 33,111 91,602 96,770 Landfill closure and postclosure costs 28,454 - - 28,454 - Depreciation 81,255 109,653 197,065 387,973 375,930 Supplies - 784 656 1,440 - General administrative 129,451 854 22,799 153,104 93,826 t Capital outlay 8,137 75,631 75,631 159,399 50,608 Allocated to projects (11,418) - (11,418) 1,684,509 552,476 731,704 2,968,689 2,689,731 Operating loss (38,299) (121,944) (202,760) (363,003) (183,855) Other income: Interest - 11,683 11,681 23,364 16,727 Loss before cumulative effect of t adoption ofGASB 18 (38,299) (110,261) (191,079) (339,639) (167,128) Cumulative effect of adoption of GASB 18 (252,995) - - (252,995) - Net loss (291,294) (110,261) (191,079) (592,634) (167,128) Amortization of contributions in aid of construction 76,805 109,645 196,590 383,040 359,101 Increase (decrease) in retained earnings (214,489) (616) 5,511 (209,594) 191,973 Retained earnings at beginning of year 77,485 544,045 573,005 1,194,535 1,002,562 Retained earnings at end of year $ (137,004) $ 543,429 $ 578,516 $ 984,941 $ 1,194,535 78 79 KODIAK ISLAND BOROUGH EXHIBIT E -3 ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 I Sanitary Water Sewer Totals Services Utility Utility 1994 1993 Operating income (loss) $ (38,299) $ (121,944) $ (202,760) $ (363,003) S (183,855) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 81,255 109,654 197,065 387,974 375,930 Provision for landfill closure and postclosure costs 28,454 - - 28,454 - (Gain) loss on sale of assets 2,690 - 2,690 (2,686) Changes in assets and liabilities: Customers and patients receivable (53,048) 2,636 (21,182) (71,594) (140,596) Due to /from other funds 8,000 107,000 (124,000) (9,000) 74,000 Other assets - - - - (69,263) Accounts payable 2,787 40,249 48,516 91,552 13,413 1 Customer deposits (9,265) (9,265) 4,216 Accrued expenses 2,905 Due to the City of Kodiak (14,935) (15,355) (30,290) 15,820 Deferred revenue (60,645) (60,645) (121,290) 121,290 Other accrued liabilities (2,880) (5,723) (5,723) (14,326) 11,446 Total adjustments 67,258 168,971 18,676 254,905 406,475 Net cash used for operating activities 28,959 47,027 (184,084) (108,098) 222,620 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (29,679) (15,115) (16,105) (60,899) (570,589) Proceeds from sale of equipment 7,972 7,972 12,625 Receipt of gifts restricted by donor for capital purchases 15,115 16,105 31,220 601,154 Net cash used for capital and related financing activities (21,707) - (21,707) 43,190 Cash flows from investing activities: Change in assets whose use is limited: Interest and dividends on investments - 11,683 11,681 23,364 18,358 Net cash provided by investing activities - 11,683 11,681 23,364 18,358 Net change in cash and cash equivalents 7,252 58,710 (172,403) (106,441) 284,168 ' Cash and cash equivalents at beginning of year 549 505,189 510,143 1,015,881 731,713 Cash and cash equivalents at end of year $ 7,801 $ 563,899 $ 337,740 $ 909,440 $ 1,015,881 79 KODIAK ISLAND BOROUGH EXHIBIT E-4 SANITARY SERVICES ENTERPRISE FUND COMPARATIVE BALANCE SHEETS JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 1994 1993 ASSETS $ 104,119 $ 101,332 Current assets: 700 700 Equity in central treasury $ 7,801 $ 549 Customer receivables 228,248 175,200 Total current assets 236,049 175,749 Accrued for landfill closure and postclosure costs Fixed assets: - Unclassified utility plant in service 2,381,371 2,376,236 Major moveable equipment 324,353 322,255 Contributions in aid of construction: 2,705,724 2,698,491 Less accumulated depreciation (513,139) (443,667) 19,990 Net fixed assets 2,192,585 2,254,824 2,432,443 2,432,443 $ 2,428,634 $ 2,430,573 LIABILITIES AND FUND E Current liabilities: Accounts payable $ 104,119 $ 101,332 Customer deposit 700 700 Accrued expenses 15,353 18,233 Due to general fund 240,000 232,000 Total current liabilities 360,172 352,265 Accrued for landfill closure and postclosure costs 281,449 - 641,621 352,265 Fund equity: Contributions in aid of construction: State of Alaska 2,412,453 2,412,453 Other. 19,990 19,990 2,432,443 2,432,443 Accumulated amortization (508,426) (431,620) Net contributions in aid of construction 1,924,017 2,000,823 Retained earnings, undesignated (137,004) 77,485 Total fund equity 1,787,013 2,078,308 $ 2,428,634 $ 2,430,573 i 80 1 326,550 321,833 4,717 320,856 Waste collection KODIAK ISLAND BOROUGH 1,050,821 (84,621) EXHIBIT E -5 Contracted services SANITARY SERVICES ENTERPRISE FUND 48,542 54,158 81,749 Repairs and maintenance STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND 27,434 (529) 32,134 Landfill closure and postclosure costs CHANGES IN RETAINED EARNINGS 28,454 (28,454) - 1 BUDGET AND ACTUAL 81,255 2,915 68,985 General administration YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 129,451 8,084 85,601 Installation costs 23,950 1994 Variance - - Recycling effort 14,500 8,137 Favorable 1993 Allocated to projects Budget Actual (Unfavorable) Actual Operating revenues: Refuse collection $ 1,244,000 $ 1,193,712 $ (50,288) $ 1,269,525 (1,999) Sanitary service fees 338,000 434,098 96,098 380,195 (38,299) Other 17,400 18,400 1,000 24,991 Other income (expense): 1,599,400 1,646,210 46,810 1,674,711 Operating expenses: Personnel services 326,550 321,833 4,717 320,856 Waste collection 966,200 1,050,821 (84,621) 1,062,774 Contracted services 102,700 48,542 54,158 81,749 Repairs and maintenance 26,905 27,434 (529) 32,134 Landfill closure and postclosure costs - 28,454 (28,454) - Depreciation 84,170 81,255 2,915 68,985 General administration 137,535 129,451 8,084 85,601 Installation costs 23,950 - 23,950 - Recycling effort 14,500 8,137 6,363 16,966 Allocated to projects - (11,418) 11,418 - 1,682,510 1,684,509 (1,999) 1,669,065 Operating income (loss) (83,110) (38,299) 44,811 5,646 Other income (expense): Interest (expense) - - - ( Net income (loss) before cumulative effect of adoption of GASB 18 (83,110) (38,299) 44,811 5,644 Cumulative effect of adoption of GASB 18 - (252,995) (252,995) - Net income (loss) $ (83,110) (291,294) $ (208,184) 5,644 Amortization of contributions in aid of construction 76,805 52,866 Increase in retained earnings (214,489) 58,510 Retained earnings at beginning of year 77,485 18,975 Retained earnings at end of year $ (137,004) $ 77,485 81 KODIAK ISLAND BOROUGH SANITARY SERVICES ENTERPRISE FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE FIGURES FOR 1993 EXHIBIT E-6 1994 1993 Operating income (loss) $ (38,299) $ 5,646 Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation Provision for landfill closure and postclosure care costs (Gain) loss on sale of assets Changes in assets and liabilities: Receivable from customers Due to other funds Accounts payable Accrued expenses Accrued liabilities Total adjustments Net cash provided by operating activities Cash flows from capital and related financing activities: Acquisition and construction of capital assets Proceeds from sale of equipment Receipt of gifts restricted by donor for capital purchases Net cash used for capital and related financing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 81,255 68,985 28,454 - 2,690 (2,686) (53,048) (156,198) 8,000 97,000 2,787 5,982 - 2,905 (2,880) - 67,258 15,988 28,959 21,634 (29,679) (55,514) 7,972 12,625 - 19,990 (21,707) (22,899) 7,252 (1,265) 549 1,814 $ 7,801 $ 549 82 KODIAK ISLAND BOROUGH EXHIBIT E -7 WATER ENTERPRISE FUND COMPARATIVE BALANCE SHEETS JUNE 30, 1994 WITH COMPARATIVE FIGURES FOR 1993 ASSETS 1994 1993 Current assets: Equity in central treasury $ 250,485 $ 655 Customer receivables 43,522 46,158 Less allowance for doubtful accounts (6,901) (6,901) Net customer receivables 36,621 39,257 Due from sanitary services fund - 116,000 Total current assets 287,106 155,912 Restricted assets: Equity in central treasury 63,414 128 Temporary investments 250,000 504,406 Total restricted assets 313,414 504,534 Fixed assets: Unclassified utility plant in service 6,012,160 5,671,796 Accumulated depreciation (1,084,399) (974,746) Net utility plant in service 4,927,761 4,697,050 Construction, work -in- progress - 325,250 Net fixed assets 4,927,761 5,022,300 $ 5,528,281 $ 5,682,746 LIABILMES AND FUND EQUITY Current liabilities: Accounts payable $ 68,071 $ 27,822 Other accrued liabilities - 5,723 Deferred revenues - 60,645 Customer deposits 18,200 27,465 Due to City of Kodiak 5,425 20,360 Due to debt service fund - 9,000 Total liabilities 91,696 151,015 Fund equity: Contributions in aid of construction: City of Kodiak 189,166 189,166 State of Alaska 5,482,630 5,482,630 Federal government 277,135 271,524 Other 28,562 19,058 5,977,493 5,962,378 Accumulated amortization (1,084,337) (974,692) Net contributions in aid of construction 4,893,156 4,987,686 Retained earnings, undesignated 543,429 544,045 Total fund equity 5,436,585 5,531,731 $ 5,528,281 $ 5,682,746 83 KODIAK ISLAND BOROUGH EXHIBTr E-8 WATER ENTERPRISE FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTAL FOR 1993 Operating expenses: Personnel services Purchased water Repairs and maintenance Depreciation Testing Advertising and hearings Insurance and bonding Printing and binding Office supplies and postage Fuel Capital outlay Continuing education Operating loss Other income: Interest income Net 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 387,000 1994 43,532 397,416 Variance - 15,000 8,644 Favorable 1993 284,000 Budget Actual (Unfavorable) Actual Operating revenues: 31,057 (1,057) 30,588 Water sales $ 387,000 $ 424,457 $ 37,457 $ 386,666 Installation charges - 852 852 2,154 Other - 5,223 5,223 8,596 Operating expenses: Personnel services Purchased water Repairs and maintenance Depreciation Testing Advertising and hearings Insurance and bonding Printing and binding Office supplies and postage Fuel Capital outlay Continuing education Operating loss Other income: Interest income Net 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 387,000 430,532 43,532 397,416 15,000 8,644 6,356 10,869 284,000 325,853 (41,853) 283,959 30,000 31,057 (1,057) 30,588 50,500 109,653 (59,153) 109,653 8,000 - 8,000 - 500 39 461 - - - 572 700 234 466 351 1,300 784 516 741 _ - - 212 - 75,631 (75,631) 10,152 2 581 1,419 2,981 392,000 552,476 (160,476) 450,078 (5,000) (121,944) (116,944) (52,662) 5,000 11,683 6,683 8,364 $ - (110,261) $ (1I0 261) (44,298) 109,645 109,645 (616) 65,347 544,045 478,698 $ 543,429 $ 544,045 84 J 1 1 a KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTA FOR 1993 EXHIBIT E -9 1994 1993 Operating loss $ (121,944) $ (52,662) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 109,654 109,653 Changes in assets and liabilities: Receivable from customers 2,636 13,361 Due to /from other funds 107,000 (7,000) Other assets - (34,668) Accounts payable 40,249 4,306 Customer deposits (9,265) 4,216 Due to City of Kodiak (14,935) 8,120 Deferred revenue (60,645) 60,645 Other accrued liabilities (5,723) 5,723 Total adjustments 168,971 164,356 Net cash provided by (used for) operating activities 47,027 111,694 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (15,115) (255,915) Receipt of gifts restricted by donor for capital purchases 15,115 290,582 Net cash provided by (used for) capital and related financing activities - 34,667 Cash flows from investing activities: Interest and dividends paid on investments 11,683 9,177 Net cash provided by investing activities 11,683 9,177 Net change in cash and cash equivalents 58,710 155,538 Cash and cash equivalents at beginning of year 505,189 349,651 Cash and cash equivalents at end of year $ 563,899 $ 505,189 85 t KODIAK ISLAND BOROUGH EXHIBIT E -10 SEWER ENTERPRISE FUND COMPARATIVE BALANCE SHEETS JUNE 30, 1994 WITH COMPARATIVE FIGURES FOR 1993 ASSETS 1994 1993 Current assets: Equity in central treasury $ 24,326 $ 5,609 Customer receivables 66,135 44,953 Less allowance for doubtful accounts (19,663) (19,663) Net customer receivables 46,472 25,290 Due from Sanitary Services Fund 240,000 116,000 Total current assets 310,798 146,899 Restricted assets: Equity in central treasury 63,414 128 Temporary investments 250,000 504,406 Total restricted assets 313,414 504,534 Fixed assets: Unclassified utility plant in service 10,211,886 9,870,603 Machinery and equipment 3,172 3,172 Accumulated depreciation (1,684,905) (1,487,839) Net utility plant in service 8,530,153 8,385,936 Construction, work -in- progress - 325,177 Net fixed assets 8,530,153 8,711,113 $ 9,154,365 $ 9,362,546 LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable $ 77,560 $ 29,044 Other accrued liabilities - 5,723 Deferred revenues - 60,645 Due to City of Kodiak 4,585 19,940 Total liabilities 82,145 115,352 Fund equity: Contributions in aid of construction: City of Kodiak 40,000 40,000 State of Alaska 9,630,603 9,630,603 Federal government 209,554 219,058 Other 297,133 271,524 10,177,290 10,161,185 Accumulated amortization (1,683,586) (1,486,996) Net contributions in aid of construction 8,493,704 8,674,189 Retained earnings, undesignated 578,516 573,005 Total fund equity 9,072,220 9,247,194 $ 9,154,365 $ 9,362,546 1 0 n KODIAK ISLAND BOROUGH SEWER ENTERPRISE FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE TOTALS FOR 1993 EXHIBIT E -11 1994 Variance - Favorable 1993 Budget Actual (Unfavorable) Actual Operating revenues: Sewer service charges $ 430,000 $ 525,345 $ 95,345 $ 429,760 Other - 3,599 3,599 3,989 430,000 528,944 98,944 433,749 Operating expenses: Personnel services 13,000 6,554 6,446 6,536 Purchased sewer treatment 306,000 395,888 (89,888) 305,554 Contracted services - - - 300 Repairs and maintenance 40,000 33,111 6,889 34,048 Depreciation 49,400 197,065 (147,665) 197,292 Operating supplies 2,000 24 1,976 109 Electric 17,000 21,087 (4,087) 16,509 Fuel 200 1,362 (1,162) 190 Advertising and hearings 100 116 (16) - Printing and binding 700 234 466 351 Office supplies and postage 900 632 268 622 Capital outlay - 75,631 (75,631) 10,153 Small tools 700 - 700 (3,172) Continuing education - - - 2,096 430,000 731,704 (301,704) 570,588 Operating loss - (202,760) (202,760) (136,839) Other income: Interest income - 11,681 11,681 8,365 Net loss $ - (191,079) $ (191,079) (128,474) Amortization of contributions in aid of construction 196,590 196,590 Increase in retained earnings 5,511 68,116 Retained earnings at beginning of year 573,005 504,889 Retained earnings at end of year $ 578,516 $ 573,005 F -1h KODIAK ISLAND BOROUGH SEWER ENTERPRISE FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEAR ENDED JUNE 30, 1994 WITH COMPARATIVE FIGURES FOR 1993 EXHIBIT E -12 1994 1993 Operating loss $ (202,760) $ (136,839) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation Changes in assets and liabilities: Receivable from customers Due from other funds Other assets Accounts payable Due to City of Kodiak Deferred revenue Other accrued liabilities Total adjustments Net cash provided by (used for) operating activities Cash flows from capital and related financing activities: Acquisition and construction of capital assets Capital contractors from other Receipt of gifts restricted by donor for capital purchases Net cash provided by capital and related fmancing activities Cash flows from investing activities: Interest and dividends on investments Net cash provided by investing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 88 197,065 197,292 (21,182) 2,241 (124,000) (16,000) - (34,595) 48,516 3,125 (15,355) 7,700 (60,645) 60,645 (5,723) 5,723 18,676 226,131 (184,084) 89,292 (16,105) (259,160) 16,105 - - 290,582 - 31,422 11,681 9,181 11,681 9,181 (172,403) 129,895 510,143 380,248 $ 337,740 $ 510,143 KODIAK ISLAND BOROUGH EXHIBIT F -1 DATA PROCESSING INTERNAL SERVICE FUND BALANCE SHEET JUNE 30, 1994 1994 ASSETS Current assets: Equity in central treasury $ 7,786 Total current assets 7,786 Fixed assets: Machinery and equipment 699,245 Less accumulated depreciation (134,707) Net fixed assets 564,538 $ 572,324 LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable $ 29,580 Total current liabilities 29,580 Fund equity: i Contributed capital�� l� 617,382 Retained earnings, undeciguated- (74,638) v Total fund equity 542,744 $ 572,324 89 KODIAK ISLAND BOROUGH DATA PROCESSING INTERNAL SERVICE FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1994 EXHIBIT F -2 1994 Operating revenues: Charges for services: General fund Mental Health Center Day Care Assistance fund Sanitary services fund Sale of copies Operating expenses: Personnel services Contracted services Repairs and maintenance Depreciation Supplies General and administrative Operating loss before transfers Operating transfers in - General fund Net loss Retained earnings at beginning of year Retained earnings at end of year 260,990 274,843 Variance - 365,920 Favorable Budget Actual (Unfavorable) $ 229,660 $ 237,520 $ 7,860 2,480 2,767 287 50 247 197 4,400 4,221 (179) 24,400 30,088 5,688 260,990 274,843 13,853 365,920 372,898 (6,978) 5,731 - 5,731 26,644 27,773 (1,129) 47,380 134,707 (87,327) 13,040 11,761 1,279 52,275 52,342 (67) 510,990 599,481 (88,491) (250,000) (324,638) (74,638) 250,000 250,000 - $ - (74,638) $ (74,638) $ (74,638) W I 1 t 1 1 1 1 1 1 1 1 1 1 1 i KODIAK ISLAND BOROUGH DATA PROCESSING INTERNAL SERVICE FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEAR ENDED JUNE 30, 1994 EXHMIT F -3 1994 Operating loss $ (324,638) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 134,707 Changes in assets and liabilities: Accounts payable 29,580 Total adjustments 164,287 Net cash provided by (used for) operating activities (160,351) Cash flows from noncapital financing activities: Operating transfers in from other funds 250,000 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (81,863) Net cash provided by capital and related financing activities (81,863) Net change in cash and cash equivalents 7,786 Cash and cash equivalents at beginning of year - Cash and cash equivalents at end of year $ 7,786 91 1 1 1 1 1 0 t AGENCY FUNDS Agency Funds are used to account for resources received and held by the Borough in a fiduciary capacity for individuals, private organizations, other governments and for other funds. EXHIBrr G -1 Balance at July 1, 1993 Additions Deductions ASSETS Investments (at market value) LIABILITIES Due to participants Balance at $ 953,698 $ 41,608 $ - $ 995,306 $ 953,698 $ 41,608 $ - $ 995,306 93 I KODIAK ISLAND BOROUGH AGENCY FUNDS - DEFERRED COMPENSATION PLAN COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED JUNE 30, 1994 EXHIBrr G -1 Balance at July 1, 1993 Additions Deductions ASSETS Investments (at market value) LIABILITIES Due to participants Balance at $ 953,698 $ 41,608 $ - $ 995,306 $ 953,698 $ 41,608 $ - $ 995,306 93 1 J I GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Assets Account Group is a self - balancing account group which is used to account for the fixed assets of the Borough other than those recorded in the Enterprise Funds. 1 1 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF FIXED ASSETS BY SOURCE it 1. -)FEAR JUNE 30, 1994 EXHIBIT H -1 General fixed assets: 1994 Land $ 8,060,221 Buildings 67,392,318 Improvements other than buildings 845,153 Machinery and equipment 1,848,981 Construction, work -in- progress 6,348,878 $ 84,495,551 Investment in general fixed assets: Capital Projects Funds: General obligation bonds $ 48,451,435 Federal grants 3,237,340 State grants 14,174,215 General Fund revenues 6,019,203 Special Revenue Fund revenues 877,715 Contributions from State of Alaska 10,476,343 Contributions from Federal Government 1,259,300 $ 84,495,551 M 1 t KODIAK ISLAND BOROUGH EXHIBIT H -2 GENERAL FIXED ASSETS ACCOUNT GROUP Public safety: SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY YEAR-ENDED JUNE 30, 1994 Emergency preparedness 226,303 - 100,000 - 126,303 Improvements Machinery 971,747 241,136 Other Than and - Total Land Buildings Buildings Equipment Staff agencies: 633,336 - Borough mayor $ 20,884 $ - $ - $ - $ 20,884 Borough clerk 20,386 - - - 20,386 Finance 68,549 - - - 68,549 Assessing 26,984 - - - 26,984 Community development 106,366 - - - 106,366 Engineering/facilities 68,014 - - - 68,014 Data services 648,882 - - - 648,882 Resource management 17,437 - - - 17,437 General administration 138,157 - - - 138,157 Mental health 117,762 - - - 117,762 125,715 Total staff agencies 1,233,421 - - - 1,233,421 ' Public safety: Emergency preparedness 226,303 - 100,000 - 126,303 Fire Protection Area 1 971,747 241,136 455,584 - 275,027 Women's Bay Fire District 633,336 - 425,655 - 207,681 Woodland Acres Lighting 3,014 3,014 Total public safety 1,834,400 241,136 981,239 3,014 609,011 Schools 60,887,381 - 60,887,381 - - Teacher housing 125,715 = 125,715 = - General government buildings 4,404,532 4,397,983 6,549 Building sites 403,132 403,132 - - - ' Playgrounds Other 710,239 1,131,900 - - 1,000,000 710,239 131,900 = 67,662,899 403,132 66,411,079 842,139 6,549 Undeveloped land 7,415,953 7,415,953 - - - ' 78,146,673 8,060,221 67,392,318 845,153 1,848,981 ' Construction, work -in- progress Total general fixed assets 6,348,878 - 6,348,878 - - $ 84,495,551 $ 8,060,221 $ 73,741,196 $ 845,153 $ 1,848,981 97 I t KODIAK ISLAND BOROUGH EXHIBIT H -3 GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY At% JUNE 30, 1994 ' General Fixed General Fixed Assets at Emergency preparedness Assets at 7,060 July 1, 1993 Additions Deductions June 30, 1994 Staff agencies: 10,512 - 971,747 ' Borough mayor $ 20,884 $ - $ - $ 20,884 Borough clerk 19,006 1,380 - 20,386 Finance 61,678 6,871 - 68,549 Assessing 25,832 1,152 - 26,984 Community development 101,838 4,528 - 106,366 Engineering/facilities 66,795 1,219 - 68,014 Data services 1,279,557 - 630,675 648,882 Resource management 7,731 9,706 - 17,437 General administration 126,003 12,154 - 138,157 Mental health 89,528 28,234 - 117,762 Total staff agencies 1,798,852 65,244 630,675 1,233,421 ' Public safety: Emergency preparedness 219,243 7,060 - 226,303 Fire Protection Area 1 961,235 10,512 - 971,747 ' Women's Bay Fire District 627,704 5,632 - 633,336 Woodland Acres Lighting 3,014 3,014 Total public safety 1,808,182 26,218 - 1,834,400 Schools 60,717,259 170,122 - 60,887,381 Teacher housing 125,715 - - 125,715 General government buildings 4,397,983 6,549 4,404,532 Building sites 403,132 - - 403,132 Playgrounds Other 710,239 1,131,900 - 710,239 1,131,900 67,486,228 176,671 - 67,662,899 Undeveloped land 7,415,953 - - 7,415,953 78,509,215 268,133 630,675 78,146,673 Construction, work -in- progress Total general fixed assets 1,180,894 5,167,984 - 6,348,878 $ 79,690,109 3 5,436,117 $ 630,675 $ 84,495,551 99 1 I� � �I LJ 1 GENERAL LONG-TERM DEBT ACCOUNT GROUP The General Long Term Debt Account Group is a self- balancing account group which is used to account for unmatured general long -term debt and other obligations backed by the full faith and credit of the Borough except those long -term obligations which are required to be accounted for in the proprietary fund types and ' trust funds. 1 1 1 1 1 ' KODIAK ISLAND BOROUGH ' GENERAL LONG -TERM DEBT ACCOUNT GROUP SCHEDULE OF LONG -TERM DEBT P JUNE 30, 1994 WITH COMPARATIVE FIGURES FOR 1993 EXHIBrr I -1 ' Amount available and to be provided for the payment of general long-term debt: Amount available in debt service fund: General obligation bonds $ 4,133,559 $ 5,847,169 Accrued annual leave 233,266 225,292 ' 4,366,825 6,072,461 Amount to be provided: General obligation bonds ' Environmental Protection Agency loan $ ' General obligation bonds: 24,000,189 28,367,014 4,622,831 239,581 4,862,412 $ 10,934,873 1994 1993 23,781,441 218,748 1991 refunding $ 2,015,000 $ 3,045,000 ' 1989 refunding 6,700,000 7,425,000 1993 bonds 9,215,000 - 1994 bonds 9,985,000 - 27,915,000 10,470,000 ' Environmental Protection Agency loan 218,748 239,581 Accrued annual leave 233,266 225,292 ' 452,014 464,873 $ 28,367,014 $ 10,934,873 ' 101 1994 1993 23,781,441 218,748 t t KODIAK ISLAND BOROUGH EXHIBIT J -1 KODIAK, ALASKA SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY JUNE 30, 1994 Annual principal and interest requirements on General Obligation School Refunding Bonds. Year Principal Interest Total 1995 $ 2,250,000 $ 1,760,186 $ 4,010,186 1996 2,460,000 1,370,170 3,830,170 1997 1,545,000 1,237,938 2,782,938 1998 1,640,000 1,139,284 2.779,284 1999 1,745,000 1,035,416 2,780,416 2000 1,840,000 934,398 2,774,398 2001 1,945,000 825,663 2,770,663 2002 825,000 752,058 1,577,058 2003 860,000 716,170 1,576,170 2004 900,000 678,330 1,578,330 2005 940,000 637,380 1,577,380 2006 980,000 592,730 1,572,730 2007 1,030,000 544,710 1,574,710 2008 1,085,000 489,090 1,574,090 2009 1,145,000 430,500 1,575,500 2010 1,205,000 368,670 1,573,670 2011 1,270,000 303,600 1,573,600 2012 1,340,000 233,750 1,573,750 2013 1,415,000 160,050 1,575,050 2014 1,495,000 82,224 1,577,224 $ 27,915,000 $ 14,292,317 $ 42,207,317 103 KODIAK ISLAND BOROUGH EXHIBIT J -2 KODIAK, ALASKA GENERAL OBLIGATION SCHOOL IMPROVEMENT BONDS, 1991 SERIES A RETIREMENT SCHEDULE This issue, dated July 15, 1991, was issued as registered bonds under a book entry system registered in the name of Cede & Company, as Nominee of The Depository Trust Company, New York, New York, the securities depository for the 1991 Bonds. Bonds are retired serially in numerical order over a period of five years. Retirement dates are semiannually beginning on December 1, 1991 and semi - annually thereafter. These bonds are not subject to redemption prior to maturity. This issue was marketed by John Nuveen & Co. Legal opinion was rendered by bond counsel, Wohlforth & Flint of Anchorage. Bonds were issued to refund the 1986 A issue. Bonds are payable at Security Pacific National Bank (formerly Rainier) Seattle, Washington. 104 Interest Maturity Rate Principal Interest Total December 1, 1994 5.60 $ 765,000 $ 57,795 $ 822,795 June 1. 1995 5.80 250,000 36,375 286,375 December 1, 1995 5.80 750,000 29,125 779,125 June 1. 1996 5.90 250,000 7,375 257,375 $ 2,015,000 $ 130,670 $ 2,145,670 104 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH EXHIBIT J -3 KODIAK, ALASKA GENERAL OBLIGATION SCHOOL REFUNDING BONDS, SERIES 1989 RETIREMENT SCHEDULE This issue, dated May 1, 1989, consists of 2,000 bonds in the amount of $5.000 each, totaling $10,000,000. Bonds numbered 1 through 660 have been retired. Bonds number 661 through 2,000 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of 10 years. Retirement date is August 1 of each year beginning in 1989. Bonds maturing in 1997 and after are callable beginning in 1997 and this call privilege may be exercised. This issue was marketed by John Nuveen & Co. of Chicago. Legal opinion was rendered by bond counsel, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage. Bonds were issued to refund the 1980 issue. Bonds are payable at Bank of America, Seattle, Washington. * Maturities on and after August 1, 1997 are callable at par on this and any interest date thereafter 105 Bond Principal Interest Interest Fiscal Interest Numbers Due Due Due Year Rate Inclusive August 1 August 1 February 1 Total 1995 6.65 661 -816 $ 780,000 $ 229,507 $ 203,571 $ 1,213,078 1996 6.70 817 -983 835,000 203,571 175,599 1,214,170 1997 6.80 984 -1161 890,000 175,599 145,339 1,210,938 1998 6.85 1162 -1350 945,000 145,338 112,972 1,203,310 1999 6.90 1351 -1553 1,015,000 112,973 77,955 1,205,928 2000 6.95 1554 -1769 1,080,000 77,955 40,425 1,198,380 2001 7.00 1770 -2000 1,155,000 40,425 - 1,195,425 $ 6,700,000 $ 985,368 $ 755,861 $ 8,441,229 * Maturities on and after August 1, 1997 are callable at par on this and any interest date thereafter 105 KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL OBLIGATION BONDS, 1994 SERIES A RETIREMENT SCHEDULE 1994 Bond Issue This issue, dated November 15, 1993, was issued as registered bonds under a book entry system registered in the name of Cede & Company, as Nominee of The Depository Trust Company, New York, New York, the securities depository for the 1994 Bonds. This issue was marketed by John Nuveen & Co. Legal opinion was rendered by bond council, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage, Alaska. These bonds were issued to build the Northstar Elementary School, remodel the Ouzinkie School, and remodel and expand the Kodiak Island Hospital. Bonds are payable at Seattle First National Bank, Seattle, Washington. Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Interest 5.40 5.40 5.40 5.40 5.50 5.50 5.50 5.50 Interest Principal Due Due August 15 February 15 272,355 $ 408,533 $ - 272,355 - 272,355 - 272,355 - 272,355 - 272,355 - 272,355 - 272,355 - 272,355 - 272,355 - 272,355 - 272,355 - 272,355 1,030,000 244,545 1,085,000 215,250 1,145,000 184,335 1,205,000 151,800 1,270,000 116,875 1,340,000 80,025 1,415,000 41,112 1,495,000 $ 4,710,735 $ 9,985,000 I � i EXHIBIT J4 1 n 1�' Interest ' Due February 15 Total $ 272,355 $ 680,888 272,355 544,710 272,355 544,710 272,355 544,710 272,355 544,710 272,355 544,710 272,355 544,710 272,355 544,710 272,355 544,710 272,355 544,710 272,355 544,710 272,355 544,710 272,355 1,574,710 244,545 1,574,090 215,250 1,575,500 184,335 1,573,670 151,800 1,573,600 116,875 1,573,750 80,025 1,575,050 41,112 1,577,224 $ 4,574,557 $ 19,270,292 106 1 1 t 1 1 1 1 1 1 KODIAK ISLAND BOROUGH EXHIBIT J -5 KODIAK, ALASKA GENERAL OBLIGATION BONDS, 1993 SERIES A RETIREMENT SCHEDULE 1993 Bond Issue This issue, dated November 15, 1993, was issued as registered bonds under a book entry system registered in the name of Cede & Company, as Nominee of The Depository Trust Company, New York, New York, the securities depository for the 1993 Bonds. This issue was marketed by John Nuveen & Co. Legal opinion was rendered by bond council, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage, Alaska. These bonds were issued to build the Northstar Elementary School, remodel the Ouzinkie School, and remodel and expand the Kodiak Island Hospital. Bonds are payable at Seattle First National Bank, Seattle, Washington Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Interest 7.00 6.00 5.50 5.25 3.90 4.05 4.20 4.35 4.40 4.55 4.75 4.90 Interest Principal Due Due August 15 February 15 $ 331,230 $ 455,000 204,895 625,000 186,145 655,000 168,132 695,000 149,889 730,000 135,654 760,000 120,264 790,000 103,674 825,000 85,730 860,000 66,810 900,000 46,335 940,000 24,010 980,000 $ 1,622,768 $ 9,215,000 Interest Due February 15 Total $ 220,820 $ 1,007,050 204,895 1,034,790 186,145 1,027,290 168,132 1,031,264 149,889 1,029,778 135,654 1,031,308 120,264 1,030,528 103,674 1,032,348 85,730 1,031,460 66,810 1,033,620 46,335 1,032,670 24,010 1,028,020 $ 1,512,358 $ 12,350,126 [tit KODIAK ISLAND BOROUGH KODIAK, ALASKA ABESTOS REMOVAL LOAN PAYABLE RETIREMENT SCHEDULE EXHIBIT J-6 This debt was incurred June 24, 1985 as part of a package from the U.S. Environmental Protection Agency. This package was for $750,000. One -half ($375,000) was a grant (EPA Grant J 851002 010) and the other half was a loan. The loan is repayable semi - annually in the amounts indicated below. Semi - annual payments are made directly to the U.S. Environmental Protection Agency; Financial Management Center; P.O. Box 371293M, Pittsburgh, PA 15251. This is not general obligation debt. Legal opinion was rendered by bond counsel, Wolforth, Argetsinger, Johnson & Brecht of Anchorage. Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Principal Interest Due Rate* December 31 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 10,417 10,417 10,417 10,417 10,416 10,417 10,416 10,417 10,416 10,417 10,414 Principal Due June 30 $ 10,417 10,417 10,417 10,417 10,416 10,417 10,416 10,417 10,416 10,417 $ 114,581 $ 104,167 Interest Due* Total $ - $ 20,834 20,834 20,834 20,834 20,832 20,834 20,832 20,834 20,832 20,834 10,414 $ - $ 218,748 * No interest is payable until a payment due is in default; then interest, penalties and fees become due. 108 1 1 1 � I STATISTICAL SECTION Statistical Tables provide report users with a better historical perspective in assessing current financial status and trends of the Borough. 1 1 i 1 1 1 1 1 1 1 t 1 1 KODIAK ISLAND BOROUGH TABLE 1 KODIAK, ALASKA GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (a) LAST TEN FISCAL YEARS (a) Includes general fund only. (b) Includes operating transfers for this function Source: Borough general ledger 109 Other Fiscal General Health and Operating Year Government Sanitation Education Transfers Total 1985 $ 1,677,539 $ 547,388 $ 1,608,341 $ 1,080,310 $ 4,913,578 1986 1,877,136 563,516 1,662,858 447,669 4,551,179 1987 2,089,508 579,930 1,901,130 553,373 5,123,941 1988 1,964,710 545,954 2,177,405 890,000 5,578,069 1989 2,208,351 517,112 2,128,997 768,100 5,622,560 1990 2,478,619 367,921 2,334,650 553,312 5,734,502 1991 2,791,798 621,000 2,143,633 460,325 6,016,756 1992 2,739,848 706,251 3,027,510 500,000 6,973,609 1993 2,955,824 674,032 3,374,721 137,962 7,142,539 1994 2,555,349 690,430 3,615,695 322,228 7,183,702 (a) Includes general fund only. (b) Includes operating transfers for this function Source: Borough general ledger 109 KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL REVENUES BY SOURCE LAST TEN FISCAL YEARS TABLE 2 (a) Includes general fund only. (b) Includes a $481,269 loss on investment relating to the Lion Capital Group. Source: Borough general ledger 110 Licenses, Inter - Fiscal Permits Governmental Operating Year Taxes and Fees Revenue Miscellaneous Transfers Total 1985 $ 1,868,049 $ 66,236 $ 2,365,386 $ 454,218 $ 15,000 $ 4,768,889 1986 2,065,440 137,635 2,277,655 (113,025) ro> 53,660 4,421,365 1987 2,188,750 237,481 2,114,283 451,518 57,090 5,049,122 1988 2,691,065 98,059 2,291,627 355,802 114,635 5,551,188 1989 2,515,436 95,748 3,449,948 354,523 56,410 6,472,065 1990 2,640,044 120,145 1,316,238 540,851 68,790 4,686,068 1991 2,823,929 100,868 2,255,951 456,381 173,230 5,810,359 1992 4,067,934 212,936 2,450,339 367,551 81,670 7,180,430 1993 4,481,158 433,825 1,991,730 289,570 - 7,196,283 1994 4,674,382 457,895 2,053,750 291,046 - 7,477,073 (a) Includes general fund only. (b) Includes a $481,269 loss on investment relating to the Lion Capital Group. Source: Borough general ledger 110 1 1 i 1 1 1 1 1 i 1 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS TABLE 3 Percent of Percent of Percent Delinquent Total Tax Outstanding Delinquent Fiscal Total Current Tax of Levy Tax Total Tax Collections Delinquent Taxes to Year Tax Levy Collections Collected Collections Collections to Tax Levy Taxes Tax Levy 1985 $ 1,508,003 $ 1,492,923 99.0% $ 10,733 $ 1,503,656 99.7% $ 19,366 1.3% 1986 2,024,237 1,986,914 98.2 13,502 2,000,416 98.8 43,185 2.1 1987 2,181,410 2,176,543 99.8 12,207 2,188,750 100.3 49,235 2.3 1988 1,926,427 1,912,214 99.3 54,625 1,966,839 102.1 25,610 1.3 1989 1,991,902 1,987,251 99.8 4,474 1,991,725 99.9 21,136 1.1 1990 2,034,500 2,017,190 99.1 12,351 2,029,541 99.8 28,640 1.4 1991 2,237,629 2,189,270 97.8 17,254 2,206,524 98.6 59,745 2.7 1992 3,736,674 3,654,535 97.8 22,178 3,676,713 98.4 92,290 2.5 1993 4,045,235 3,907,612 96.6 60,633 3,968,245 98.1 169,584 4.2 1994 4,353,371 4,176,676 95.9 21,295 4,197,971 96.4 193,624 4.4 Source: Borough general ledger 111 KODIAK ISLAND BOROUGH TABLE 4 KODIAK, ALASKA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Ratio , of Total Assessed to REAL PROPERTY PERSONAL PROPERTY TOTAL Total Fiscal Assessed Estimated Assessed Estimated Assessed Estimated Estimated Actual Year Value Actual Value Value Actual Value Value Actual Value Value 1985 $353,643,800 $385,884,500 $ 50,369,200 $186,486,200 $ 404,013,000 $ 572,370,700 70.59% 1986 374,136,300 408,336,500 46,204,800 144,110,900 420,341,100 552,447,400 76.09 1987 369,860,196 398,049,400 39,003,109 199,309,200 408,863,305 597,358,600 68.45 1988 379,969,521 390,550,900 48,795,064 204,075,100 428,764,585 594,626,000 72.11 1989 378,072,396 415,666,660 58,727,868 229,477,103 436,800,264 645,143,763 67.71 1990 406,433,607 435,940,500 73,508,740 267,181,594 479,942,347 703,122,094 68.26 1991 439,710,369 457,383,400 76,594,500 280,085,100 516,304,869 737,468,500 70.01 1992 467,821,217 497,758,275 91,537,867 331,544,400 559,359,084 829,302,675 67.45 1993 499,172,455 517,754,900 92,264,018 325,842,100 591,436,473 843,597,000 70.11 1994 515,954,650 539,053,753 98,616,145 319,052,138 614,570,795 858,105,891 71.62 (a) Reflects exemptions of boats and inventories. Source: Borough assessment and tax records 112 1 1 1 i 1 1 1 1 1 1 1 1 1 i 1 1 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS (PER $100 OF ASSESSED VALUE) LAST TEN FISCAL YEARS 0".31) & 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 Mileage Woodland Value Contribution Equivalent 1985 394,608,581 1,377,365 3.49 KIB City 1,524,460 Acres ROAD SERVICES DISTRICTS FIRE DISTRICT Fiscal General of 428,764,585 Lighting Monashka Service Bayview Woman's Service Woman's Year Fund Kodiak Total District Bay District 1 Road Bay District 1 Bay 1985 3.75 2.00 5.75 0.00 2.00 0.00 0.00 0.50 1.50 0.50 1986 3.75 2.00 5.75 0.00 2.00 0.25 0.00 0.10 1.50 0.90 1987 4.51 2.00 6.51 0.00 2.00 0.25 1.00 0.50 1.50 0.50 1988 4.51 2.00 6.51 0.00 2.00 0.25 1.00 0.50 1.50 0.25 1989 4.50 2.00 6.50 0.00 2.00 0.25 1.50 1.50 1.50 0.25 1990 4.50 2.00 6.50 0.00 1.25 0.70 1.00 1.50 1.25 1.25 1991 4.50 2.00 6.50 0.75 2.00 1.00 1.00 2.50 1.25 1.25 1992 5.50 2.00 7.50 0.75 2.00 1.75 1.00 2.50 1.25 1.25 1993 5.50 2.00 7.50 0.75 2.00 1.75 1.00 2.50 1.25 1.25 1994 5.50 2.00 7.50 0.75 2.00 1.75 1.00 2.50 1.50 1.25 a• The property tax mileage for the Kodiak Island Borough has not in the past years been broken out to indicate the true mileage that would be distributed to the various entities, in all cases. 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 Mileage Year Value Contribution Equivalent 1985 394,608,581 1,377,365 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 1989 423,038,700 2,444,882 5.78 1990 452,016,912 2,469,558 5.46 1991 516,304,869 2,484,606 4.81 1992 559,359,084 3,279,444 5.86 1993 591,436,473 3,473,411 5.87 1994 614,510,795 3,495,847 5.69 Source: Borough ordinance and assessment records. 113 KODIAK ISLAND BOROUGH KODIAK, ALASKA TEN LARGEST PROPERTY TAXPAYERS LAST TEN FISCAL YEARS TABLE 6 Source: Borough tax records. 114 Percentage Percentage of Total 1994 Net of Total Assessed Assessed Taxes Taxes Value Valuation Levied Levied All Alaskan Seafoods 2.4% $ 14,801,558 $ 112,382 2.2% International Seafoods 2.0 12,212,844 $ 100,938 2.0 Alaska Pacific Seafoods 1.9 11,882,893 $ 90,185 1.8 Washington Fish and Oyster 1.6 10,061,005 $ 79,123 1.5 Western Alaska Fisheries 1.6 9,798,223 $ 76,353 1.5 T U of the Northland 1.6 9,661,147 $ 67,024 1.3 Sea -Land Services 1.6 9,533,850 $ 78,486 1.5 Mill Bay Plaza Association 1.2 7,171,400 $ 62,750 1.2 Silver Bay Logging 1.1 7,056,899 $ 45,458 0.9 Brechan Enterprises 1.0 5,853,423 $ 49,917 1.0 Totals 16.0 $ 98,033,242 $ 762,616 14.8 Source: Borough tax records. 114 KODIAK ISLAND BOROUGH KODIAK, ALASKA RATIO OF NET GENERAL BONDED DEBT (a) LAST TEN FISCAL YEARS TABLE 7 Ratio Net of Net Bonded Less Debt Bonded Debt Debt Fiscal Assessed Gross Service Net Bonded to Assessed Per Year Population (b) Value Bonded Debt Fund Debt Value Capita 1985 13,389 $ 394,608,581 $ 25,815,000 $ 7,154,308 $ 18,660,692 4.7 % $ 1,394 1986 13,748 406,612,778 30,665,000 7,776,557 22,888,443 5.6 1,665 1987 13,952 404,859,425 25,925,000 7,279,292 18,645,708 4.6 1,336 1988 14,127 428,764,585 22,160,000 7,111,644 15,048,356 3.5 1,065 1989 15,575 436,800,264 17,550,000 5,310,721 12,239,279 2.8 786 1990 rol 15,558 452,016,912 15,310,000 6,683,745 8,626,255 1.9 554 1991 15,679 516,304,869 13,735,000 7,307,730 6,427,270 1.2 410 1992 15,535 559,359,084 12,195,000 6,556,480 5,638,520 1.0 363 1993 15,535 591,436,473 10,470,000 5,847,171 4,622,829 0.8 298 1994 15,245 614,570,795 27,915,000 4,133,559 23,781,441 3.9 1,560 Sources: (a) Information obtained from assessment records and Borough general ledger except as otherwise noted. (b) 1990 population is per U.S. Bureau of Census (preliminary); others are estimates from the Borough Planning Department based on the "Housing Unit Method." 115 KODIAK ISLAND BOROUGH KODIAK, ALASKA COMPUTATION OF DIRECT AND OVERLAPPING DEBT LAST TEN FISCAL YEARS TABLE 8 Net Debt Outstanding (a) Percentage Applicable to this Governmental Unit (b) Kodiak Island Borough Share of Debt (c) Kodiak Island Borough: General obligation bonds $ 23,781,441 100% $ 4,622,829 City of Kodiak: General obligation bonds 365,000 57 208,000 Revenue bonds 6,340,000 57 3,613,800 Total $ 30,486,441 $ 8,444,629 (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. Sources: Borough general ledger and City of Kodiak records. 116 1 1 1 1 1 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, 1994 TABLE 9 Assessed value Plus exempt property Total $ 614,570,795 2,354,550,201 $ 2,969,120,996 The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions. Debt capacity is ultimately determined by the marketplace. Source: Borough assessment records. 117 KODIAK ISLAND BOROUGH TABLE 10 KODIAK, ALASKA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES AND TRANSFERS LAST TEN FISCAL YEARS (a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of term bonds. Source: Borough general ledger and debt documents 118 Total Ratio of General Debt Service Fiscal Interest Total Debt Expenditures to General Year Principal (a) and Fees Service and Transfers Expenditures 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 1989 5,135,833 1,502,762 6,638,595 5,622,560 118.1 1990 2,260,833 978,583 3,239,416 5,803,292 55.8 1991 1,595,834 1,019,401 2,615,234 6,016,756 43.5 1992 1,685,833 1,008,918 2,694,751 6,973,603 38.6 1993 1,745,833 736,357 2,482,190 7,142,539 34.8 1994 1,775,833 690,170 2,466,003 7,162,545 34.4 (a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of term bonds. Source: Borough general ledger and debt documents 118 KODIAK ISLAND BOROUGH TABLE 11 KODIAK, ALASKA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Fiscal School Unemployment Year Population (a) Enrollment (b) Rate (c) 1985 13,389 2,295 9.6 % 1986 13,748 2,285 7.7 1987 13,952 2,329 7.4 1988 14,127 2,531 6.2 1989 15,575 2,304 6.2 1990 15,558 2,328 5.6 1991 15,679 2,398 8.2 1992 15,535 2,614 5.1 1993 15,535 2,632 6.0 1994 15,245 2,802 9.4 Sources: (a) 1990 per U.S. Bureau of Census; other years per Borough Planning Department, except 1992 and 1993. (b) Kodiak Island Borough School District. (c) Department of Labor, Anchorage. 119 KODIAK ISLAND BOROUGH TABLE 12 KODIAK, ALASKA SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS YEAR ENDED JUNE 30, 1994 (1) By ordinance in 1984 the Kodiak Island Borough Assembly elected to decrease the amount of bond payments and 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. Source: Borough personnel records. 120 Amount of Annual Surety Name of Official Title Salary Bond (1) Jerome Selby Mayor $ 72,000 (2) See page vi of introductory section Assembly members 2,400 (2) Contracted Attorney - - Karleton Short Finance Director /Treasurer 73,174 $ 1,000,000 Earl Smith Fire Chief, Service Area One 69,638 - Perry Page Data Processing Manager 64,646 - Donna Smith Borough Clerk 53,060 - Linda Freed Director of Planning and Community Development 75,004 - Vivian Brumbaugh Cashier 29,348 50,000 Patrick Carlson Assessor /Appraiser 64,646 - Martin White Director of Mental Health 66,268 - Steve Hobgood Facilities Coordinator 63,065 - Cheryl Bolger Accountant 49,275 - Kelli Veech Accountant 45,760 - (1) By ordinance in 1984 the Kodiak Island Borough Assembly elected to decrease the amount of bond payments and 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. Source: Borough personnel records. 120 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS YEAR ENDED JUNE 30, 1994 TABLE 13 CONSTRUCTION PROPERTY VALUE* Residential Commercial Fiscal No. of Year Permits Value 1985 62 $ 10,316,833 1986 54 3,012,970 1987 35 4,256,169 1988 42 549,382 1989 22 1,174,346 1990 18 1,709,715 1991 69 3,692,371 1992 48 3,748,125 1993 55 3,359,264 1994 14 1,103,675 PROPERTY VALUE* Residential Deposits No. of in Local Permits Value Banks Commercial Residential Nontaxable 99 $ 7,928,241 $ 61,598,752 $116,411,447 $ 236,302,401 $ 1,053,965,717 118 10,563,802 64,420,672 115,574,577 258,311,716 1,127,834,040 134 5,313,110 70,402,810 114,409,875 252,950,321 1,134,524,305 91 4,314,003 72,068,409 123,053,031 255,417,891 1,159,131,464 131 6,421,773 93,830,000 128,202,254 266,409,021 1,177,364,559 104 8,109,662 90,221,433 115,477,806 314,539,889 1,993,871,408 152 5,706,524 90,392,243 130,469,150 323,060,260 2,002,661,025 163 9,201,613 103,679,201 134,637,371 333,203,846 2,027,200,278 143 6,218,434 94,838,546 148,714,050 350,458,405 2,271,468,957 82 3,636,645 98,970,444 148,156,300 367,798,350 2,354,550,201 *Estimated actual value of real property. Source: Borough assessing records, City of Kodiak building department and local bankers. 121 KODIAK ISLAND BOROUGH KODIAK, ALASKA MISCELLANEOUS STATISTICAL DATA LAST TEN FISCAL YEARS Date of incorporation - September 30, 1963, Second Class Borough by Chapter 146 Sessions, 2 Laws of Alaska 1961, as amended, Form of Government - Mayor /Assembly. 2 Number of employees 1 1985 1986 1987 1988 Land area - square miles 4,900 4,900 4,900 4,900 Miles of improved street 17.3 19.5 20.3 21.5 Miles of sanitary sewers 4.2 9.6 15.5 16.0 Number of water taps 309 410 659 707 Number of sanitary sewer taps 170 327 619 666 Building permits: Number of schools: Permits issued 161 172 169 133 Value of buildings (thousands) $ 17,858.0 $ 12,196.8 $ 9,570.0 $ 4,863.4 Fire protection: Number of fire stations 2 2 2 Number of employees 1 1 1 Police protection - none 1 Recreation: Parks - number of acres 3,414 220 222 Facilities: Number of playgrounds 5 14 15 Number of swimming pools 1 1 1 Education: Number of schools: City of Kodiak Elementary 3 3 3 City of Kodiak Junior High 1 1 I City of Kodiak High School 1 1 1 Village Schools (b) 7 7 7 Number of support personnel (c) 158 159 152 Number of teachers 157 154 148 Number of students 2,295 2,285 2,329 Number of municipal employees 46 49 53 Elections: Number of registered voters 5,603 6,463 6,559 Number voting in last election 3,075 2,356 2,094 Percent of registered voters 46.6% 36.4% 31.9% (a) By annexation, effective March 4, 1989 the Borough has grown an additional 12,830 square miles. Total Borough is now 22,395 square miles with a land mass of 7,130 square miles (see map on page ix. (b) The majority of Village Schools are grades K -12. (c) All non - teaching employees. Source: Borough records. 1989 7130(a) 21.5 16.0 748 727 153 $ 7,596.1 2 2 1 1 223 223 15 15 1 1 3 1 1 7 167 169 2,351 3 1 1 8 172 167 2,304 57 5,427 2,507 46.2% �S: 6,150 1,459 23.7% 122 1 1 1 1 1 1 1 1 i 1 i 1 1 1 1 1 1 TABLE 14 1990 1991 1992 1993 1994 7,130 7,130 7,130 7,130 7,130 21.5 21.5 21.5 21.5 21.6 16.0 16.0 16.0 16.7 16.8 748 748 873 877 913 727 727 851 858 891 122 221 211 183 96 $ 9,819.3 $ 9,398.9 $ 12,950.0 $ 9,577.7 $ 4,740.0 2 2 2 2 2 1 1 1 1 1 223 223 223 223 223 15 15 15 15 15 1 1 1 1 1 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 8 9 9 9 9 165 175 166 171 180 167 167 164 172 191 2,328 2,398 2,614 2,632 2,802 70 75 72 67 64 6,352 6,707 6,263 6,654 7,061 2,327 1,959 1,986 2,328 2,634 37.0% 29.0% 31.8% 35.0% 37.0% 123