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CAFR FY1997KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 1997 Kodiak, Alaska Jerome Selby, Borough Mayor '1 Prepared by Finance Department: Karleton Short, Finance Director Kelli Veech, Revenue Accountant 1 KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 1997 ' TABLE OF CONTENTS INTRODUCTORY SECTION 2 t EXHIBIT Combined Statement of Revenues, Expenditures, Transfers and PAGE ' ELECTED OFFICIALS (PHOTOGRAPHS) ............................................................................. ............................... BOROUGH OFFICIALS .......................................................................................................... ............................... v vii BOARDSAND COMMITTEES .................................................................. ............................... ...........................viii 6 MAP OF KODIAK ISLAND BOROUGH ................................................................................. ............................... x GFOA CERTIFICATE OF ACHIEVEMENT .......................................................................... ............................... xi ORGANIZATIONALCHART ................................................................................................ ............................... xii LETTER OF TRANSMITTAL • i ' Combined Statement of Cash Flows - ' FINANCIAL SECTION 12 EXHIBIT PAGE ' INDEPENDENT AUDITORS' REPORT ............................................................................... ............................... 1 GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types, Account Groups and Discretely PresentedComponent Unit ................................................................................. ..............................1 2 Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances - All Governmental Fund Types and Discretely Presented Component Unit ................................................................ ..............................2 6 Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances - 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 Discretely Presented Component Unit ................4 11 Combined Statement of Cash Flows - ' Proprietary Fund Types and Discretely Presented Component Unit ................. ..............................5 12 Notes to the combined Financial Statements (an integral part of the combined financial statements) ................. 13 ' ADDITIONAL INFORMATION COMBINING INDIVIDUAL FUND AND ACCOUNT GROUP ' FINANCIAL STATEMENTS AND SCHEDULES GENERAL FUND: BalanceSheets ................................................................................................ ............................... A -1 33 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual ........................................................ ............................... A -2 Schedule of Expenditures and Transfers - Budget and Actual ....................... ............................... A -3 34 36 1 KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 1997 TABLE OF CONTENTS (continued) 63 ' Combining Statement of Revenues, Expenditures EXHIBIT PAGE ' SPECIAL REVENUE FUNDS: Statement of Revenues, Expenditures, Transfers and CombiningBalance Sheet ................................................................................... ............................B -1 42 ' Combining Statement of Revenues, Expenditures, Transfers Bonds........................................................................................................... ............................... C -3 65 andChanges in Fund Balances ......................................................................... ............................B -2 44 , Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual: ' Fire and Road Service Areas: D -1 68 Fire: Fire Protection Area No. 1 .................................................................... ............................B -3 47 ' Womens Bay Fire Department ............................................................. ............................B-4 48 Road: D -3 72 Monashka Bay Road Service Area ....................................................... ............................B -5 49 , ServiceDistrict No. 1 ........................................................................... ............................B -6 50 Womens Bay Service Area ................................................................... ............................B -7 51 Bay View Road Service Area ............................................................... ServiceArea No. 2 ....................................................................................... ............................B -8 ............................B -9 52 53 , MentalHealth Center .................................................................................. ...........................B -10 54 CoastalManagement ................................................................................ Child Care Assistance Program .................................................................. ............................B -I 1 ...........................B -12 55 56 ' LandSales ................................................................................................... ...........................B -13 57 Buildingsand Grounds ............................................................................... ...........................B -14 58 Woodland Acres Street Light Service Area ................................................ ...........................B -15 59 KodiakArts Council ................................................................................... ...........................B -16 60 , Facilities...................................................................................................... ...........................B -17 61 TourismDevelopment ................................................................................ ...........................B -18 62 ' DEBT SERVICE FUNDS: CombiningBalance Sheet ................................................................................... ............................0 -1 63 ' Combining Statement of Revenues, Expenditures Transfers, and Changes in Fund Balances ........................................................ ............................0 -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 -1 68 Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances ..................................................... ............................... D -2 70 Schedule of Capital Projects ........................................................................... ............................... D -3 72 Schedule of Expenditures - Budget and Actual .............................................. ............................... D4 74 ' ii I KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 1997 TABLE OF CONTENTS (continued) EXHIBIT PAGE ENTERPRISE FUNDS: CombiningBalance Sheet .................................................... ............................... ............................E -1 76 Combining Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings ................................................................ ............................... E -2 78 Combining Statement of Cash Flows .............................................................. ............................... E -3 79 Municipal Solid Waste Collection and Disposal Fund: BalanceSheets ..................................................................... ............................... ............................E -4 80 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual ..................................................... ............................... E -5 81 Statementsof Cash Flows ................................................................................ ............................... E -6 82 Water Fund: BalanceSheets ..................................................................... ............................... ............................E -7 83 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual ..................................................... ............................... E -8 84 Statements of Cash Flows ................................................................................ ............................... E -9 85 Sewer Fund: BalanceSheets .................................................................... ............................... ...........................E -10 86 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual ....................... ............................... ............................E -11 87 Statements of Cash Flows .............................................................................. ............................... E -12 88 Hospital Facilities Fund: BalanceSheet ...................................................................... ............................... ...........................E -13 89 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual ........................ ............................... ...........................E -14 90 Statementof Cash Flows ............................................................................... ............................... E -15 91 911 Services Fund: BalanceSheet ................................................................................................. ............................... E -16 92 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual ........................ ............................... ...........................E -17 93 Statementof Cash Flows ............................................................................... ............................... E -18 94 INTERNAL SERVICE FUND: Management Information Systems Fund: BalanceSheets ................................................................................................. ............................... F -1 95 Statement of Revenues, Expenses, Transfers and Changes in in Retained Earnings - Budget and Actual ..................................................... ............................... F -2 96 Statements of Cash Flows ................................................................................ ............................... F -3 97 iii KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 1997 TABLE OF CONTENTS (continued) EXHIBIT PAGE AGENCY FUNDS: Combining Statement of Changes in Assets and Liabilities ........................... ............................... G -1 99 GENERAL FIXED ASSETS ACCOUNT GROUP: Schedule of Fixed Assets by Source ............................................................... ............................... H -1 101 Schedule of General Fixed Assets by Function and Activity ......................... ............................... H -2 102 Schedule of Changes in General Fixed Assets by Function and Activity H -3 103 GENERAL LONG -TERM DEBT ACCOUNT GROUP: Schedulesof Long -Term Debt .......................................................................... ............................... I -1 105 ADDITIONAL INFORMATION - BONDED INDEBTEDNESS: Summary of Bonded Debt Service Requirements to Maturity ............................ ............................J -1 107 General Obligation School Refunding Bonds, Series 1989 ................................. ............................J -2 108 General Obligation Bonds, 1993 Series A ........................................................... ............................J -3 109 General Obligation Bonds, 1994 Series A ........................................................... ............................J -4 110 Asbestos Removal Loan Payable ......................................................................... ............................J -5 111 STATI STICAL SECTION TABLE PAGE STATISTICAL TABLES: General Governmental Expenditures and Other Uses by Function - Last Ten Fiscal Years ................................................................... ..............................1 113 General Revenues by Source - Last Ten Fiscal Years .......................................... ..............................2 114 Property Tax Levies and Collections - LastTen Fiscal Years ......................................................................................... ..............................3 115 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years ........................................................................ ..............................4 116 Property Tax Rates and contributions to the School District LastTen Fiscal Years ........................................................................................ ..............................5 117 Ten Largest Property Taxpayers ........................................................................... ..............................6 118 Ratio of Net General Bonded Debt - Last Ten Fiscal Years ................................. ..............................7 119 Computation of Direct and Overlapping Debt ...................................................... ..............................8 120 Computationof Legal Debt Margin ...................................................................... ..............................9 121 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures and Transfers - LastTen Fiscal Years ........................................................................................ .............................10 122 Demographic Statistics - Last Ten Fiscal Years .................................................. .............................11 123 Salaries and Surety Bonds of Principal Officials ................................................. .............................12 124 Property Value, Construction and Bank Deposits - LastTen Fiscal Years ........................................................................................ .............................13 125 Miscellaneous Statistical Data - LastTen Fiscal Years ........................................................................................ .............................14 126 1v INTRODUCTORY SECTION Annual Report • Kodiak Island Borough, Alaska - ASSEMBLY MEMBERS- TOM ABELL At Large, 1999 ROBIN HEINRICHS TUCK BONNEY DR. GARY STEVENS At Large, 1998 At Large,1999 At Large, 1997 Presiding Officer of Assembly 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, 1997, and the related statements and statistical tables. Respectfully submitted, Karleton G. Short, Finance Director DR. BOB JOHNSON At Large, 1998 WAYNE STEVENS At Large, 1999 Deputy Presiding Officer JEROME M. SELBY Mayor of Kodiak Island Borough, 1998 MICHAEL MILLIGAN At Large, 1997 L ' KODIAK ISLAND BOROUGH BOROUGH OFFICIALS YEAR ENDED JUNE 30, 1997 ' BOROUGH ASSEMBLY Wayne Stevens '99 (Deputy Presiding Officer) Robin Heinrichs '98 (Presiding Officer) Dr. Bob Johnson '98 Gary Stevens '97 Tom Abell'99 Michael R. Milligan '97 Tuck Bonney'99 Vii BOROUGH MAYOR Jerome M. Selby '98 KarletonG. Short ........................................................................................... ............................... Finance Director/Treasurer Steve Hobgood ............................................................. ............................... ....................Engineering and Facilities Director DonnaSmith ..................................................................................................................... ............................... Borough Clerk LindaL. Freed .............................................................................................................. ............................... Planning Director PatrickS. Carlson ....................................................................................................................... ............................... Assessor PerryL. Page ................................................................................................... ............................... Data Processing Manager MartinWhite .................................................................... ............................... .........................Mental EarlA. Smith .......................................................... ................................................................ Health Center Director ............................... Fire Chief Charles E. "Bud" Cassidy ........................................................................ ............................... Resource Management Officer Jamin, Ebell, Bolger, Gentry ......................................................... ............................... (Contracted Firm) Borough Attorney PhilCline ....................................................................................... ............................... .......................Hospital Administrator BettyWalters .......................................................................................... ............................... Superintendent, School District CherylBolger ........................................................................................................... ............................... General Accountant KelliVeech .............................................................................................................. ............................... Revenue Accountant BarbaraTempleton .................................................................................. ............................... ..................... Purchasing Agent Vii KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1997 School Board * Jean Barber Joe M. Floyd Jack McFarland Jeff Stephan Norm Wooten Corrinne Rainville, Student Rep. Hospital Advisory Board * Wayne Stevens Gil Bane Mark K. Buckley Russell Grimm Michael Machulsky Mary A. Monroe Gretchen Saupe Phil Cline, KIH Staff, ex- officio Mike Milligan, Assembly Rep. Dr. Mark Withrow, Chief of Staff Mental Health Center Advisory Board * Jody Burcham Patti Carlson Claude E. Dalrymple, Jr. Craig Fanning John C. Houser, III Jacqueline Madsen Suzanne McKinley Lauri Whiddon Tuck Bonney, Assembly Rep. Lt. Mark L. Everett, CG Rep, ex- officio Jan Pennington, KIB staff Karen Perkins, KAMI Rep., ex- officio Martin White, MHC Director, ex- officio Planning and Zoning Commission * Jerrol Friend Donna Bell Suzanne Hancock Robbie Scheidler Clarence W. Selig Walter Stewart Darlene Turner Woodland Acres Street Lighting Service Area Advisory Board * Sharon Nault Bob Hatcher I vacancy Citizen Board of Equalization * Jim Carmichael Craig Fanning Karenia Hackett Tim Hurley Steve Jensen Cheryl McNeil, Alternate Pat Carlson, KIB staff Donna Smith, KIB staff Parks and Recreation Committee * David Odell Forrest Blau Susan Byersdorfer Steve Cole Thomas A. Stewart Vincent Walser Kate Wynne Joe Floyd, School Bd. Rep., ex- officio Linda Freed, KIB staff Ian Fulp, City Rep., ex- officio Claire Holland, State Rep., ex- officio Bob Johnson, Assembly Rep. Darlene Turner, P & Z Rep. Building Code Board of Appeals/ (Architectural Review Board) * Gerald Cloudy Gregg Hacker Jay Johnston Woody Koning Jeff LeDoux Tom Templeton Steve Hobgood, KIB Mayor designee, ex- officio Jack McFarland, School Board Rep.,ex - officio Gary Stevens, Assembly Rep. Bob Tucker, KIBSD designee, ex- officio Personnel Advisory Board * Donna Bell Craig N. Fanning Christine Jamin Chris Nielsen Dorothy Weeks Rachael Miller, KIB staff viii KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1997 Data Processing Steering Committee * Jerome Selby Mary Munk Perry Page Karleton Short Martin White Fire Protection Area No. 1 Advisory Board * Scott Arndt Roy Aguirre Alice Knowles Charles Lorenson Bill Swearingin Earl Smith, ex- officio Bav View Road Service Area Advisory Board * Fred "Sky" Roberts Dawn Black Gale Gray Reed Oswalt 1 vacancy Emereency Services Council Carolyn Floyd Bill Jones Jerome Selby Robin Heinrichs Bien Abiles, Capt. USCG Service District No. 1 Advisory Board (continued) Anthony J. Perez Womens Bav Service Area Advisory Board * David Conrad Linda Estes Edward Gondek Linda Hinson George Lee Tom Schwantes James Wells Dale L. Rice, ex- officio Kodiak Island Transportation Studv Steering Committee (KITS) Carolyn Floyd Matt Holmstrom Bill Jones Jerome Selby John Sullivan Wayne Stevens, Assembly Rep. Airport Advisory Committee Stosh Anderson Bruce Buffington Tony Clark Robert Himes Cecil Ranney Richard Waddell Robert B. Wilson, Jr. Arlen Zacharias LT CDR Chris Brewton, CG ex- officio John Chya, ex- officio CDR Drew Dilkes, CG ex- officio Connie Lanahan, KIB staff Service Area No. 2 Commission 5 vacancies Service District No. 1 Advisory Board * Charles Lorenson Roy Aguirre Scott Arndt Ed Mahoney * Indicates chair ix Monashka Bav Road Service Area Advisory Board * Roger Blacket Jeff Hamer Dan Miller Julie Wisher Mark Withrow Emereency Services Council Carolyn Floyd Bill Jones Jerome Selby Robin Heinrichs Bien Abiles, Capt. USCG Service District No. 1 Advisory Board (continued) Anthony J. Perez Womens Bav Service Area Advisory Board * David Conrad Linda Estes Edward Gondek Linda Hinson George Lee Tom Schwantes James Wells Dale L. Rice, ex- officio Kodiak Island Transportation Studv Steering Committee (KITS) Carolyn Floyd Matt Holmstrom Bill Jones Jerome Selby John Sullivan Wayne Stevens, Assembly Rep. Airport Advisory Committee Stosh Anderson Bruce Buffington Tony Clark Robert Himes Cecil Ranney Richard Waddell Robert B. Wilson, Jr. Arlen Zacharias LT CDR Chris Brewton, CG ex- officio John Chya, ex- officio CDR Drew Dilkes, CG ex- officio Connie Lanahan, KIB staff Service Area No. 2 Commission 5 vacancies Service District No. 1 Advisory Board * Charles Lorenson Roy Aguirre Scott Arndt Ed Mahoney * Indicates chair ix ARCTIC OCEAN ow .. � eA! �_?n.�. PRUVHOE a+r x ci NOME �JVOMJV SOUND FAIRBANKS ALASKA b am I� a- i KODIAK d` ISLAND Q BOROUGH Id` WE CANADA VALDEZ CULT OF "i" C�D X I SEME . M=I BA r O �• O NORTH PACIFIC OCEAN S it i i Certificate of Achievement for Excellence in Financial Reporting Presented to Kodiak Island Borough, Alaska I7 I I I I � rANA President ca�aunon r SEAL am zertlwt Executive Director Xi For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1996 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. I7 I I I I � rANA President ca�aunon r SEAL am zertlwt Executive Director Xi 0 Q � w KIN December 1, 1997 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, 1997, is submitted herewith. The Borough Finance Department prepared this report. 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, 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 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 concepts used by the Borough, and some financial presentations. The financial section includes the report of the independent accountants, combined financial statements, notes to combined financial statements, and the 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. GENERAL INFORMATION The Kodiak Island Borough lies at the western border of the Gulf of Alaska, approximately 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 710 MILL BAY ROAD KODIAK, ALASKA 99615 -6398 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. A strong Mayor /Assembly form of government governs the Borough. The Borough Assembly is composed of seven members who are elected at- large. 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. ECONOMIC CONDITION AND OUTLOOK The economic condition of the Kodiak Island Borough remains healthy. The main industries of the Borough are commercial fishing, logging, and tourism. Overall, the commercial fishing industry has declined this last year, mostly due to poor salmon prices. Some segments of the commercial fishing industry are growing however. 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, accounting for two thirds xiii (67 %) of the severance tax revenue collected. For all of the fisheries combined, the total catch in calendar year 1996 was $81,827,258, compared to $109,011,000 in calendar year 1995. In 1995, salmon accounted for 46% of the total Kodiak fishery in dollar value, but this had dropped to 31 % in 1996. It appears that farmed salmon from Norway and Chile has driven down the price for Alaska wild salmon. The following table shows the salmon catch for calendar year 1997 compared to 1996 and 1995. Number of Pounds of Dollar Value of Salmon Caught Salmon Caught Salmon Caught 1997 14,457,593 57,800,575 S 18,795,950 1996 9,215,978 46,571,702 S 25,762,142 1995 N/A 187,389,313 S 50,500,000 As the table shows, 57,800,575 pounds of salmon were caught in 1997, but the estimated ex- vessel value was only $18,795,950. In 1996, Kodiak fisherman caught 11,228,873 less pounds of salmon but with $6,966,192 more in ex- vessel value. This is a 27% decrease in ex- vessel value with a 24% increase in total weight delivered. Kodiak had an exceptional salmon year in 1995. One item that can skew these numbers, however, is the price per pound paid for the different types of salmon. In 1997, prices ranged from approximately 12 cents per pound for pink salmon to approximately 90 cents per pound for red salmon. The 1997 herring season was very disappointing. In 1996, 4,037 tons of herring was caught with a value of $7,032,400; in 1997, 3,990 tons of herring was caught, but the ex- vessel value was only $1,272,500. The price has dropped from $1,742 per ton in 1996 to only $319 per ton in 1997. This is a decrease in price of 82 %. The shellfish industry improved slightly in 1996, with a catch of $3,936,718 compared to a catch of $3,380,000 in 1995. This is down significantly from the catches of $9.5 million in 1994, $27.6 million in 1981, and $47.5 million in 1980. The logging industry continues to be healthy in Kodiak. In fiscal year 1997, $40,301,481 worth of timber was harvested in the Kodiak Island Borough, an increase of 10% over fiscal year 1996's harvest of $36,595,556. The assessed value of real and personal property of the Kodiak Island Borough has risen from $428,764,585 in 1988 to $681,342,890 in 1997, an increase of 59 percent. The unemployment rate as of June 30, 1997, was 7.7 percent compared to 13.7 percent in 1996 and 11.2 percent in 1995. Seasonal cannery worker hiring traditionally begins around July. The local unemployment rate has fluctuated from 5 to 14 percent 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 the Borough will also have to grow to provide the same level of services to its residents. MAJOR INITIATIVES In preparing the fiscal year 1997 budget, the Kodiak Island Borough identified several major projects to be addressed during the year. All major projects are listed in Exhibit D -3 of the comprehensive annual financial report. The most significant project undertaken in fiscal year 1997 is the Kodiak Fisheries Research Center. This facility will be leased to various Federal and State of Alaska agencies for marine biological and ecological research work. The project is largely financed by funds received from the sale of rights on Shuyak Island to the State, from which the Borough has received a total of over $10 million in fiscal years 1997 and 1996. The total cost of the project is currently budgeted at $17,465,000. Capital projects either started or expanded in fiscal year 1997 totaled $21,787,869. DEPARTMENT OR ACTIVITY SERVICE EFFORTS AND ACCOMPLISHMENTS The Borough provides a variety of services including education, health, solid waste collection and disposal, planning and zoning, public improvements, and general administration. The Borough provides for education through the Kodiak Island Borough School District. The Borough's contract with Lutheran Health Systems Management Company to operate the Kodiak Island Hospital and Care Center ended April 20, 1997. Effective April 21, 1997, the Kodiak Island Borough leased the Hospital facility to xiv Providence of Alaska Medical Center. The Borough is responsible for solid waste collection and disposal. Collection services are contracted through an outside source The Borough has four road service areas, two fire protection areas, and one street light service area. Each year the Borough selects a department to highlight for its efforts and accomplishments. For fiscal year 1997, we have selected the Engineering & Facilities Department. The Engineering & Facilities Department coordinates, implements, and monitors capital and repair construction projects within the Kodiak Island Borough. The staff manages service area contracts and acts as liaison for the service areas with the public and elected officials. The Engineering/Facilities Department administers municipal codes related to construction and utility improvements. The staff is responsible for grant generation and management, fiscal management of capital and maintenance projects, facilities inspections including deficiency identification and correction, generation of requests for proposals and projects, requests for major equipment purchases, consultant selection and construction contract administration and coordination with other governmental agencies regarding project and regulatory requirements. Maintenance and upkeep of Borough -owned vehicles is also the responsibility of the department. The Environmental Engineer is responsible for required safety programs for the Borough. The Engineering/Facilities Department is responsible for many budget programs such as the following: Building & Grounds — The operation and maintenance of Borough parks, as well as other public grounds. Specifically, this includes garbage pick -up, snow removal and parks maintenance. Building & Grounds / Borough Building — The Borough building provides administrative office space for a wide variety of municipal government functions, state agencies and other non - profit organizations. Building & Grounds / Mental Health Center — The Kodiak Island Borough apartments provide housing and space for a variety of mental health rehabilitation, therapy programs and administration offices. Building & Grounds / Parks Operation & Maintenance — The purpose of the Kodiak Island Borough Parks and Recreation Program is to provide a wide range of year -round recreational opportunities. Borough parks also serve as landscape components along the road system and in urban neighborhoods. Womens Bay Road & Service Area — Womens Bay Road & Service Area provides maintenance service to roads within the service area, including snow and ice removal, ditching and culvert work. Service District No. 1 — Service District No. 1 provides maintenance service to roads within the district, including snow removal, ditching and grading. Service Area No. 2 — Service Area No. 2 is responsible for water and sewer services in the service area. Monashka Bay Road Service Area - Monashka Bay Road Service Area is responsible for the road maintenance in the service area. Bay View Road Service Area - Bay View Road Service Area is responsible for the road maintenance in the service area. Woodland Acres Street Light Area — Provides street lighting to the residents of part of Woodland Acres. Facilities Fund — This fund was established with the proceeds from the sale of Shuyak Island. The State of Alaska purchased Shuyak Island from the Borough for $42,000,000. This money is being set aside and interest earnings, after inflation proofing, can be used for debt service, insurance on buildings, and major maintenance repairs. Many of the duties of the Engineering and Facilities Department involve the Municipal Solid Waste (MSW) Collection and Disposal Program. The Municipal Solid Waste (MSW) Collection and Disposal Program provides waste collection, disposal, and recycling services for the residents and commercial generators of the greater Kodiak urban area. A private contractor provides primary collection services. Individuals and commercial generators deliver solid waste such as garbage, construction debris, metal, asbestos, waste oil, infectious and hazardous waste to the baler facility. xv The MSW Department is responsible for the administration, operation, and maintenance of the baler facility and active landfill area. The landfill is operated in observance of all federal, state, and local regulations and statutory guidelines in providing a facility for the disposal of solid waste for the citizens of Kodiak. The largest component of the current year budget is Capital Projects. Major projects which have been completed or are in progress for the current year include the Kodiak Island Hospital and Care Center, the Kodiak Fisheries Research Center (formerly called the Near Island Research Facility), Peterson Elementary School Addition, design of replacement for parts of the Kodiak High School roofs, upgrades to the Borough Hill parking lots and sidewalks, Kodiak Recreation Facility (including the BMX Bike Track), remodel of the old "KMXT" space for use by the KIBSD Special Services Department, the Chiniak Teacherage House, and many smaller projects. Particular attention has been given to continue to address the deferred maintenance of facilities owned by the Kodiak Island Borough. This will enable the Borough to prolong the estimated life of these facilities. The Engineering/Facilities Department is one of the largest departments in the Borough, with eleven employees and several contract or part-time employees. The Department consists of the Director of Engineering/Facilities, Environmental Engineer, Projects Assistant, Secretary III, Carpenter, Maintenance Worker, Baler /Landfill Supervisor, Baler Operator II, and three Baler Operator I. The Engineering/Facilities department provides support to all other departments on a regular basis. The total overall impact of the Engineering/Facilities Department to the operation of the Kodiak Island Borough is central to creating a safe and functional atmosphere for employees and facilities. FINANCIAL INFORMATION DISCUSSION OF CONTROLS Management is extremely aware of the importance of a strong internal control structure. 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 controls. The Borough Finance Department focuses on all aspects of internal control. The Borough Finance Department wants to ensure the safeguarding of Borough assets and the delivery of reliable and accurate financial information. Duties are segregated as much as possible in a small office, which limits individual control over any one area. Internal control policies are reviewed at least annually and documented to reflect any procedural changes that are deemed necessary. Cross training and segregation of duties are considered valuable in the internal control structure. Budgetary Controls The Borough uses the modified accrual basis for governmental funds and the accrual basis for enterprise and internal service 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 additional appropriation approximately halfway through the fiscal year. Budgetary control is also maintained through the use of an encumbrance system. As purchase orders, contracts, and other obligations are issued, corresponding amounts of appropriations are reserved by the use of encumbrances so that appropriations will not be overspent. A public hearing and the adoption of a budget ordinance appropriates all new funds. The Assembly makes appropriation transfers between funds and/or departments only after the adoption of an ordinance. Borough staff may execute transfers between line items within a department. xvi GENERAL GOVERNMENT FUNCTIONS The following chart summarizes General Fund revenues for the fiscal year ended June 30, 1997. This chart includes General Fund revenues only. Severance Taxes $845,638 10.0% Investments and Property $371,414 4.4% Intergovern- mental $2,396,272 28.3% Licenses, Permits, Fees and Other $108,483 1.3% The following schedule summarizes changes from the prior year for General Fund revenues: Increase (Decrease) Revenue Sources Over 1996 Property taxes $ 91,360 Intergovernmental (432) Investments and property (80,782) Severance taxes (202,862) Licenses, permits, fees and other (176,617) $ (369,333) Property Taxes $4,736,399 56.0% Property tax is the largest source of revenue for the General Fund of the Kodiak Island Borough. The increase in property tax revenue is due to an increase in assessed values in the Borough of $27,208,239. This is almost twice the increase in assessed value from fiscal year 1995 to fiscal year 1996 ($13,672,075). Severance tax revenues declined from $1,048,500 in fiscal year 1996 to $845,638 in fiscal year 1997, a difference of $202,862. Severance tax related to commercial fishing decreased $224,067 from last year while severance tax on timber increased by $25,015. xvii The following chart illustrates General Fund expenditures for the year ended June 30, 1997, by function: Education Culture and $263,472 Public Safety Recreation 7.5% $88,330 $163,300 2.5% �\4 1 4.7% lip Public safety General Government $1,983,675 56.5% Community Development $423,769 12.1% Health and Sanitation $585,806 16.7% Changes in levels of expenditures for major General Fund functions of the Borough over the preceding year are shown in the following tabulation: $ (265,898) General Fund expenditures relating to general government declined $265,898 in fiscal year 1997. Reductions include decreased legal costs of $35,000, settlement costs of $20,000, and insurance and bonding costs of $20,000. xviii Increase (Decrease) Expenditures Over 1996 General government $ (269,199) Public safety (1,465) Health and sanitation 21,939 Education (5,466) Culture and recreation - Community development (11,707) $ (265,898) General Fund expenditures relating to general government declined $265,898 in fiscal year 1997. Reductions include decreased legal costs of $35,000, settlement costs of $20,000, and insurance and bonding costs of $20,000. xviii It is the goal of the Kodiak Island Borough to maintain a fund balance in the General Fund of at least two million dollars. The fund balance as of June 30, 1997, was $2,048,941. The following table reflects the fund balance of the General Fund at the close of business for the past ten fiscal years: General Fund Balance Last ten fiscal years $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 ao 00 o PROPRIETARY OPERATIONS For several years, the Kodiak Island Borough had contracted with the Lutheran Health Systems Management Company to manage the Kodiak Island Hospital and Care Center. The Borough was ultimately liable for any financial loss under this contract. This changed on April 21, 1997, however, when the Borough entered into a ten - year lease with Providence of Alaska Medical Center to operate the Hospital. xix a o ° . o, a a a a a a Oneratine Income <Loss> Water Sewer Solid Waste Total 1993 <52,662> <136,839> 5,646 <183,855> 1994 <121,944> <202,760> <38,299> <363,003> 1995 <26,388> <154,721> 50,006 <131,103> 1996 <39,950> <141,637> <2,099,567> <2,281,154> 1997 0 0 475,980 475,980 xix a o ° . o, a a a a a a For the period July 1, 1996, through April 20, 1997, the hospital showed an operating income of $919,203, non - operating gains of $226,025, and received restricted capital contributions of $200,000. This means that the hospital would have increased their retained earnings by $1,345,228 by the end of the year. As a result of the residual equity transfer of $1,576,932 to the Kodiak Island Borough on April 20, 1997, the retained earnings of the Hospital were reduced by $231,704 to $5,681,413. Non - operating gains are state revenue sharing of $76,333, unrestricted contributions of $68,633, interest income of $58,670, donor - restricted gifts of $51,955 and loss on sale of assets of $29,566. In fiscal year 1996, the hospital had an operating gain of $84,324 and a non - operating gain of $459,405 that resulted in an increase in retained earnings of $543,729. In previous fiscal years, the Borough provided water and sewer service to the residents of Service District No. 1. The Borough did not have a water plant or sewer treatment facility but instead purchased water and sewage treatment from the City of Kodiak. These customers were in a service area contiguous to the City. By voter approval, all of these accounts were transferred to the City of Kodiak, effective July 1, 1996. In fiscal year 1997, the Borough's utility fund (solid waste) had an operating income of $475,980. This is a considerable improvement over the prior year's operating loss of $2,099,567. A significant portion of the improvement can be attributable to a change in the estimate for closure /post closure costs. Please see Note 15 on page 29 for full disclosure. In fiscal year 1996, closure and post closure costs of our landfill were $2,005,956; in fiscal year 1997 they were ($246,629). At the end of fiscal year 1997, a homeowner in the City of Kodiak paid $24.00 for garbage service while a resident outside of the City paid $21.50 for garbage service. The reason it costs more for garbage service within the City is that typically residents within the City receive curbside service while those residents outside of the City use dumpsters. FIDUCIARY OPERATIONS The 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) of changes in employee and employer contribution rates. Amounts are budgeted, withheld, and remitted accordingly. Annually the State of Alaska PERS revises the actuarial assumptions. 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 property tax collections for all governmental entities within the Kodiak Island Borough. For service areas within the Borough, the revenue is recognized in that area'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. DEBT ADMINISTRATION Summary of debt principal outstanding at fiscal year end was: General Obligation, 1994 $ 9,985,000 General Obligation, 1993 7,480,000 General Obligation, school refunding, 1989 4,195,000 Environmental Protection Agency loan 156,248 $ 21,816,248 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 nor issued. The Borough did have a $3,000,000 revenue anticipation note that was paid in full on December 31, 1996. xx As of June 30, 1997, net per capita bonded debt is $1,502. 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 SIA" sl,wo 61 o 611600 $ w sm 8 6600 S SM Y Z SM S. Freal Year CASH MANAGEMENT Effective cash management is essential to the long- term stability and profitability of any organization. Day -to -day 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, and Mental Health Center. The Borough uses 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." Deposits are made daily and all idle funds are invested on the following day. The Borough recognizes that there is frequently some exposure to uninsured and uncollateralized deposits. Great strides have been made in minimizing this exposure through increased collateral and selection of banks and brokers with additional insurance. A local servicing bank sweeps the total balances to another account on a daily basis. U.S. Treasuries at 102 percent of carrying value collateralize this account. A third -party bank holds the collateral. All new investments are purchased on a delivery versus 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 is the safest way of holding our investments. The Borough's 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 $21 million. Interest rates for our fiscal year started at 5 percent to 8 percent in early July, 1996. At year-end, investments were earning from 5.41 percent to 7.95 percent for an average yield of 6.13 percent. We ended the year with investment earnings for all funds in the amount of $1,481,248. 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. The Kodiak Island Borough has increased risk management activities as a result of several factors, one being the increased state and federal regulations related to this issue. We have a Safety Committee that meets monthly and discusses the accident prevention program and develops loss prevention policies in an effort to manage risk exposure. Several areas of concern are now addressed including: hazardous material management, bloodborne pathogens, sexual harassment awareness, accident prevention, ergonomics, and evaluation of xxt Moody's Standard Investors and Service Poors General obligation, 1994 Aaa AAA General obligation, 1993 Aaa AAA General obligation, school refunding, 1989 Aaa AAA As of June 30, 1997, net per capita bonded debt is $1,502. 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 SIA" sl,wo 61 o 611600 $ w sm 8 6600 S SM Y Z SM S. Freal Year CASH MANAGEMENT Effective cash management is essential to the long- term stability and profitability of any organization. Day -to -day 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, and Mental Health Center. The Borough uses 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." Deposits are made daily and all idle funds are invested on the following day. The Borough recognizes that there is frequently some exposure to uninsured and uncollateralized deposits. Great strides have been made in minimizing this exposure through increased collateral and selection of banks and brokers with additional insurance. A local servicing bank sweeps the total balances to another account on a daily basis. U.S. Treasuries at 102 percent of carrying value collateralize this account. A third -party bank holds the collateral. All new investments are purchased on a delivery versus 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 is the safest way of holding our investments. The Borough's 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 $21 million. Interest rates for our fiscal year started at 5 percent to 8 percent in early July, 1996. At year-end, investments were earning from 5.41 percent to 7.95 percent for an average yield of 6.13 percent. We ended the year with investment earnings for all funds in the amount of $1,481,248. 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. The Kodiak Island Borough has increased risk management activities as a result of several factors, one being the increased state and federal regulations related to this issue. We have a Safety Committee that meets monthly and discusses the accident prevention program and develops loss prevention policies in an effort to manage risk exposure. Several areas of concern are now addressed including: hazardous material management, bloodborne pathogens, sexual harassment awareness, accident prevention, ergonomics, and evaluation of xxt work environments to prevent cumulative trauma. The Borough presents training to employees to address these and other issues as part of the accident prevention program, an integral component of an effective risk management program. 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 auditors' opinion has been included in this report. The Alaska Statutes require single audits and define these requirements in 2 AAC 45.010. The Borough also complies with the "Federal Single Audit Act of 1984" as amended by the "Single Audit Act Amendments of 1996 ", and the "Drug -Free Workplace Act of 1988." 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, 1996. 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 efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such a 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 nine consecutive years (fiscal years ended 1988 - 1996). 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. GOVERNMENT FINANCE OFFICERS ASSOCIATION DISTINGUISHED BUDGET PRESENTATION AWARD The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Kodiak Island Borough for its annual budget for the fiscal years beginning July 1, 1990 through July 1, 1996. The Borough has submitted its annual budget for the fiscal year beginning July 1, 1997, and believes that it will also meet the criteria for this award. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operating guide, as a financial plan, and as a communications medium. 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 issues of Who's Who in the West and Who's Who in the World In November of 1994, Mayor Selby received an Outstanding Contribution Award at the Alaska Municipal League Conference in Juneau. 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, KARLETON G. SHORT DIRECTOR OF FINANCE xxii FINANCIAL SECTION 1 1 GENERAL PURPOSE FINANCIAL STATEMENTS The General Purpose Financial Statements include the basic financial statements and notes to the financial statements which are essential to the fair presentation of financial position and results of operations and the cash flow of proprietary funds and similar trust funds. L� n, 1 a Deloifte & buche Suite 1500 Telephone: (907) 272 -8462 �\ 550 West 7th Avenue Facsimile: (907) 264 -3181 Anchorage, Alaska 99501 INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the Assembly Kodiak Island Borough Kodiak, Alaska We have audited the accompanying general purpose financial statements of Kodiak Island Borough, Alaska, as of June 30, 1997, and for the year then ended, listed in the foregoing table of contents. These general purpose financial statements are the responsibility of the management of Kodiak Island Borough, Alaska. 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 and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. The financial statements of the Kodiak Island Hospital and Care Center Component Unit were audited in accordance with generally accepted auditing standards, but were not audited in accordance with Government Auditing Standards. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose 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, Alaska, at June 30, 1997, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of Kodiak Island Borough, Alaska. These financial statements and schedules are also the responsibility of the management of Kodiak Island Borough, Alaska. 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 a whole. The statistical data on pages 109 through 128 are presented for purposes of additional analysis and are not a 1 required part of the general purpose financial statements of the Kodiak Island Borough, Alaska. Such additional information has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, accordingly, we express no opinion on it. In accordance with Government Auditing Standards, we have also issued our report dated October 3, 1997, on our consideration of Kodiak Island Borough's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. October 3, 1997, except for Note 20, as to which the date is October 7, 1997 Deloitt buche Tohnlatsu International l KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT AS OF JUNE 30, 1997 (with comparative totals for 1996) Proprietary Governmental Fund Types Fund Types Special Debt Capital Internal General Revenue Service Projects Enterprise Service ASSETS AND OTHER DEBITS ASSETS: Equity in central treasury $ 46,299 S 226,369 S 150,653 S 108,611 S 129,276 S 81,106 Temporary investments 3,208,202 4,850,505 500,000 4,874,124 476,928 - Other cash and cash equivalents - - - _ - _ Receivables: Accounts and other receivables, net 271,888 128,774 1,060 56,440 263,214 17,725 State of Alaska 66,556 192,830 15,869 216,172 - - Federal Government - - - 661,378 - Property taxes, net of allowance of S 15,828 158,033 - _ Land sales contracts, due within one year - 188,233 - - _ _ Due from other funds 715,000 200,0,,000 00 1740 660,000 Due from component unit - - - - Due from primary government _ Inventories - 277,007 - Prepaid expenses/expenditures - 7,606 - - - 25,272 Restricted assets: Under malpractice funding arrangement- held by trustee - - - By donor for specific purpose Equity in central treasury - _ _ Temporary investments - - - 150,768 With fiscal agent - - 1,642,622 - Land sales contracts receivable, due after one year 263,713 - - Fixed assets, net of accumulated depreciation where applicable - 6.486,915 407,583 Deposit on lease _ _ _ _ Construction work -in- progress 2,377,778 OTHER DEBITS: Amount available in debt service fund Amount to be provided for retirement of general long -term debt - - _ - _ _ TOTAL S 3,750,978 S 6,573,030 S 867,582 S 7.656,725 S 12.464.508 S 531,686 The accompanying notes are an integral part of these combined financial statements. 2 EXHIBIT 1 Totals Primary Component Account Groups Government Unit Totals General General Long- (Memorandum School (Memorandum Only) Fixed Assets Term Debt Only) District 1997 1996 S S S 742.314 S S 742,314 S 1,032.839 13,909,759 13,909,759 24,730,020 233,333 233,333 290.616 739,101 15,676 754,777 2,834,013 491,427 2,077.252 2,568,679 1,546,687 661,378 18,424 679,802 645,363 158,033 - 158,033 251,747 188,233 - 188,233 200,157 3,315,000 806,122 4,121,122 2,727,953 - - 207,100 _ - 1.359,525 1.359,525 4,856,068 277,007 222.211 499,218 412,121 32,878 - 32,878 110,431 - 5,086 3,450 - 12,548 150,768 150,768 - 1,642,622 1,642.622 - 263,713 - 263,713 388,540 95,967,168 102,861,666 3,450,327 106.311,993 104,626,977 _ - 399,776 24,668.482 27,046,260 27,046,260 26,326,595 - 809,888 809,888 - 809,888 2,017,966 - 21257,139 21,257,139 790,778 22.047.917 21,622.437 $ 120,635,650 S 22,067,027 S 174.547,186 S 8,973,648 S 183,520,834 S 195248,490 (continued) 3 KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT AS OF JUNE 30, 1997 (with comparative totals for 1996) The accompanying notes are an integral pan of these combined financial statements. 4 Proprietary Governmental Fund Types Fund Types Special Debt Capital internal General Revenue Service Projects Enterprise Service LIABILITIES, FUND EQUITIES AND OTHER CREDITS LIABILITIES: Accounts payable S 236,780 S 144,612 S 57,694 S 1,453,549 S 260,072 S 1,286 Retainages payable - - - 487,372 - - Accrued compensation, annual leave, payroll taxes and related benefits 24,009 21,730 - 18,488 36,460 Other accrued liabilities 1,723 - - _ Customer deposits - 675 Deferred revenues 393,602 24,514 Deferred compensation benefits payable - - Due to City of Kodiak - Due to component units 1,359,525 - Due to primary government - - _ _ Due to other funds 80.000 960,000 770,000 1,505,000 Due to student organizations - - - _ _ Current portion of note payable - 492,063 - Current portion of capital lease obligations - 329,819 - Accrual for landfill closure and postclosure costs - 1,984,423 - Note payable - - 2,971,335 Capital lease obligations - - 1,407,947 General obligation bonds payable - _ _ Revenue anticipation short -term note payable - - Environmental Protection Agency loan _ _ Total liabilities 1.702.037 1,520.619 57,694 2.735,435 8, %9.147 37,746 FUND EQUITIES AND OTHER CREDITS: Contributions in aid of construction, net - - - 1,759,176 617,382 Investment in general fixed assets - _ _ Contributed capital - 4,298,512 Retained earnings (deficit) - - (2,562,327) (123,442) Fund balances: Reserved: Encumbrances - 16,920,146 Fuel inventory - _ Impact Aid - - - - Unreserved: Designated for subsequent year expenditures 2,048,941 - 809,888 16,244 Undesignated - 5,052,411 (12.015,100) - Total fund equities and other credits 2,048.941 5,052,411 809,888 4,921,290 3,495,361 493,940 TOTAL S 3,750.978 S 6,573.030 $ 867,582 S 7,656,725 S 12,464,508 S 531,686 The accompanying notes are an integral pan of these combined financial statements. 4 EXHIBIT 1, continued Totals Primary Component Account Groups Government Unit Totals General General Long- (Memorandum School (Memorandum Only) Fixed Assets Term Debt Only) District 1997 1996 S $ S 2,153,993 $ 119,462 S 2,273,455 S 2,336,712 178,988 487.372 - 487,372 922,829 250,779 351,466 2,679,779 3,031,245 2,653,838 - 1,723 - 1,723 232,939 675 - 675 9,813 5,178,245 418,116 11,107 429,223 589,202 - - - 1,817,728 S 195,248.490 - - 28,300 - 1,359,525 1,359,525 4,856,069 - - 207,100 3,315,000 806,122 4,121,122 2,727,953 - 178,933 178,933 159,332 492,063 - 492,063 - - 329.819 329,819 173,481 - 1,984,423 1.984,423 2,316,713 - 2,971,335 2,971,335 - - 1,407,947 1,407,947 250,631 21,660,000 21,660,000 - 21,660,000 23,205,000 - - - - 3,000,000 156,248 156,248 - 156,248 177,081 22,067,027 37,089,705 3,795.403 40.885,108 45,664.721 - 2,376,558 120,635,650 120,635,650 - - 4,298,512 (2,685,769) - 2,376,558 18,916,402 3,450,327 124,085,977 112,030,972 - 4,298,512 - (2,685,769) 1,487,657 16,920,146 123,233 17,043,379 6,475,288 - 178,988 178,988 164,829 - - 1,191,680 1,191,680 1,294,504 2,875,073 - 2,875,073 6,553,566 - (6. %2,689) 234,017 (6,728,672) 2,660,551 120,635,650 - 137,457,481 5,178,245 142.635,726 149,583,769 S 120.635,650 S 22,067,027 S 174,547.186 S 8,973,648 S 183.520.834 S 195,248.490 E KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES,TRANSFERS, AND CHANGES IN FUND BALANCES ALL GOVERNMENT FUND TYPES AND DISCRETELY PRESENTED COMPONENT UNIT YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996 REVENUES: Property taxes Intergovernmental: State sources Federal sources Land sale proceeds Severance taxes Licenses, permits, fees and other local revenues Investments and property In -kind services Total revenues EXPENDITURES: Current: Borough assembly Borough mayor Borough clerk Borough attorney Finance department Assessing department Community development department Building official Economic development General and administration Emergency preparedness School district support Health and sanitation department Education, culture and recreation Capital outlay: Schools 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): Operating transfers in from component unit Operating transfers in from other funds Operating transfers in from primary government Operating transfers out to component units Operating transfers out to other funds Operating transfers out to primary government Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 110,699 - - 194,574 - - 273,955 - 125,258 - - 560,870 - - 323,492 - - 423,769 80,278 - 83,920 - - 71,684 - - 323,143 1,150,057 - 4,410 - - 263,472 - - 585,806 2,309,959 163,300 - - 287.636 - - Special Debt General Revenue Service S 4,736,399 S 557,626 S - 1,939,106 969,951 - 457,166 5.233 - - 2,459,762 - 845,638 - - 108,483 1,067,294 - 371,414 626,073 77,132 8,458.206 5.685.939 77,132 110,699 - - 194,574 - - 273,955 - 125,258 - - 560,870 - - 323,492 - - 423,769 80,278 - 83,920 - - 71,684 - - 323,143 1,150,057 - 4,410 - - 263,472 - - 585,806 2,309,959 163,300 - - 287.636 - - - 1,565,833 - - 1,237,938 - - 2,058 3,508152 3,827,930 2,805,829 4.949.854 1,858.009 (2,728,697) - - 1,658,131 9,672 723,443 1,019,785 (3,995,000) - - (1,887,810) (324,665) (1,157,297) (5.873.138) 398.778 1.520,619 (923,284) 2,256,787 (1,208,078) FUND BALANCES, at beginning of year 2,972.225 2,795,624 2,017,966 Residual equity transfers in - - Adjustments to reserve for fuel inventory - - - FUND BALANCES, at end of year S 2.048.941 S 5,052.411 $ 809,888 The accompanying notes are an integral part of these combined financial statements. 6 EXHIBIT 2 Totals Component Primary Unit Totals Capital Government School (Memorandum Only) Projects ( Memorandum Only District 1997 1996 $ - $ 5,294,025 $ - S 5,294,025 $ 5,620,078 ■ 1,019,462 3,928,519 16,617,594 20,546,113 19,706,282 487,057 949,456 3,200,520 4,149,976 4,151,770 - 2,459,762 2,459,762 8,389,582 - 845,638 - 845,638 1,048,500 ' 1,548 1,177,325 280,225 1,457,550 1,059,543 406,629 1,481,248 1,481,248 1,797,417 - - 819,588 819,588 351.159 1.914.696 16,135,973 20.917.927 37.053.900 42,124,331 - 110,699 - 110,699 110,009 - 194,574 - 194,574 200,180 273,955 273,955 287,135 125,258 125,258 160,756 - 560,870 - 560,870 615,319 - 323,492 - 323,492 337,107 - 504,047 504,047 465,826 83,920 _ 83,920 85,500 - 71,684 - 71,684 136,485 - 1,473,200 - 1,473,200 1,400,556 4,410 - 4,410 4,295 ' 263,472 23,676,390 23,939,862 23,322,653 2,895,765 2,895,765 2,509,970 - 163,300 - 163,300 163,300 451,471 451,471 - 451,471 5,314,508 287,636 287,636 189,023 9,299,212 9,299,212 - 9,299,212 12,338,228 1,565,833 1,565,833 2,480,833 1 1,237,938 1,237,938 1,370,170 - 2,058 - 2,058 2,151 _ - 14,360 9,750,683 19,892,794 23,676,390 43,569,184 51,508,364 (7,835.987) (3,756.821) (2,758.463) (6,515,284) (9,384,033) 1,060,000 2,718,131 - 2,718,131 2,489,819 4,004,049 5,756,949 - 5,756,949 11,163,946 3,995,000 3,995,000 4,142,000 - (3,995,0 00) - (3,995,000) (4,142,000) (887,177) (4,256,949) - (4,256,949) (11,163,946) - - (1,718,131) (1,718,131) (2,489.819) 4,176.872 223.131 2.276,869 2,500,000 (3,659,115) (3,533,690) (481,594) (4,015,284) (9,384,034) 7,174,759 23,932,888 2,188,164 26,121,052 26,523,940 1,405,646 1,405,646 - 1,405,646 - - - 21.348 21,348 8.832 S 4.921.290 S 21,804.844 $ 1,727.918 S 23.532,762 S 17.148.738 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND, SPECIAL REVENUE FUND AND DEBT SERVICE FUND YEAR ENDED JUNE 30, 1997 General Fund Variance- Favorable Budget Actual (Unfavorable) 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 Borough mayor Borough clerk Borough attorney Finance department Assessing department Community development department Building official Economic development General and administration Emergency preparedness School district support Health and sanitation department Education, 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): Operating transfers in from component unit Operating transfers in from other funds Operating transfers to component unit Operating transfers out to other funds Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses FUND BALANCES, at beginning of year FUND BALANCES, at end of the year $ 4,744,560 $ 4,736,399 $ (8,161) 1,874, %3 713,129 756,000 106,320 445,000 8,639,972 1,939,106 457,166 845,638 108,483 III -A 8,453,2U6 64,143 (255, %3) 89,638 2,163 (73,586) (181,766) 112,020 110,699 1,321 198,510 194,574 3,936 275,700 273,955 1,745 139,000 125,258 13,742 566,830 560,870 5,960 324,990 323,492 1,498 432,920 423,769 9,151 79,400 83,920 (4,520) 84,000 71,684 12,316 329,330 323,143 6,187 5,500 4,410 1,090 256,640 263,472 (6,832) 589,591 585,806 3,785 163,300 163,300 - The accompanying notes are an integral part of these combined financial statements. 8 3,508.352 3,557,731 49,379 5,082,241 4,949,854 (132,387) - 9,672 9,672 (3,995,000) (3,995,000) - (1,8 %,810) (1,887,810) 9,000 (5,891,810) (5,873.138) 18,672 $ (809,569) (923,284) $ (113.715) 2,972,225 $ 2.048,941 The accompanying notes are an integral part of these combined financial statements. 8 EXHIBIT 3 9 Special Revenue Funds Debt Service Funds Variance- Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual Unfavorable) ' $ 545,060 $ 557,626 $ 12,566 $ $ - $ 991,060 969,951 (21,109) 5,800 5,233 (567) - 2,465,580 2,459,762 (5,818) 844,520 1,067,294 222,774 - 872.050 626,073 (245,977) 105,000 77,132 (27,868) ' 5,724,070 5,685,939 (38.131) 105,000 77,132 (27,868) 80,300 80,278 22 - 5 5,000 1,317,810 l ,150,057 - 167,753 - 2,071,890 2,309,959 (238,069) 346,890 287,636 59,254 - - - - 1,565,840 1,565,833 7 - - - 1,237,940 1,237,938 2 - - 3,780 2,058 1,722 54,700 54,700 3,821,890 3,827,930 (6,040) 2,862,260 2,805,829 56,431 1,902,180 1,858,009 (44,171) (2,757.260) (2,728,697) 28,563 - - - 1,645,130 1,658,131 13,001 722,530 723,443 913 1,016,780 1,019,785 3,005 (240,160) (324,665) (84,505) (1,146,712) (1,157,297) (10,585) 482,370 398,778 (83,592) 1,515.198 1,520,619 5,421 $ 2,384.550 2,256,787 $ (127,763) $ (1,242,062) (1,208,078) $ 33.984 2,795,624 2,017,966 $ 5,052,411 $ 809,888 9 I KODIAK ISLAND BOROUGH EXHIBIT 4 COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPES AND DISCRETELY PRESENTED COMPONENT UNIT ' YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) Component Totals Totals Unit Reporting Entity Primary Hospital (Memorandum Only) Internal Government Period ended Enterprise Service (Memorandum Only) April 20. 1997 1997 1996 OPERATING REVENUES: Solid waste collection S 1.593,818 S S 1,593,818 S - S 1.593,818 S 1,393,922 Solid waste disposal 1 741,941 741,941 741.941 727,216 Charges for servicesicustomer charges 93,592 594,091 687,683 687,683 681,056 Lease proceeds 120,000 120,000 120,000 - Other 16,568 16,568 16,568 15,465 2,565,919 594,091 3,160,010 3,160,010 2,817,659 OPERATING EXPENSES: Personnel services 369,012 404,896 773,908 773,908 808,802 Solid waste collection 1,110,129 1,110,129 1,110,129 1,087,242 Contracted services 247,268 247,268 247,268 385,641 Repairs and maintenance 29,229 28,423 57,652 - 57,652 82,797 Landfill closure and postclosure costs (246,629) - (246,629) - (246,629) 2,005,956 Depreciation 213,107 73,752 286,859 286.859 265,072 Professional services 102,097 102,097 102,097 Supplies - 32,958 32,958 - 32,958 29,372 General and administration 176,783 58,163 234,946 - 234,946 221,674 Recycling services 11,058 - 11,058 - 11,058 16,232 Contributions 74,907 74,907 74,907 45,935 2.086,961 598,192 2,685,153 - 2,685,153 4,948,723 Operating income (loss) 478,958 (4,101) 474,857 474,857 (2,131,064) OTHER INCOME (EXPENSES): Loss on sale of assets (1,288) (1,288) (1,288) Interest income 8,591 8,591 8,591 Interest expense (249,991) (249,991) (249,991) Net income (loss) from continuing operations 236,270 (4,101) 232,169 232,169 (2,131,064) OTHER FINANCING SOURCES (USES): Operating transfers out to other funds (1,500,000) (1,500,000) (1,500,000) Operating transfers in from component units 726 ,797 726,797 726,797 - Operating transfers out to primary government - - (1.726,797) (1,726,797) - Net other financing sources (uses) (773,203) (773,203) (1,726,797) (2,500,000) - Income from discontinued operations 1,295,093 1,295,093 374,404 Loss on disposal of component unit hospital (74,971) (74,971) - (74,971) - Amortization of contributions in aid of construction 76,805 76,805 200,000 276,805 388,485 Increase (decrease) in retained earnings (535,099) (4,101) (539,200) (231,704) (770,904) (1,368,175) Retained earnings (deficits) at beginning of year (617,471) (119,341) (736,812) 2,224,469 1,487,657 2,855,832 Transfer of sewer and water funds to the City of Kodiak (1,409,757) (1,409,757) - (1,409,757) - Residual equity transfer out (1,992,765) (1,992.765) Retained earnings (deficits) at end of year S (2.562,327) S (123.442) S (2,685,769) S - S (2,685,769) S 1,487,657 The accompanying notes are an integral part of these combined financial statements. II KODIAK ISLAND BOROUGH EXHIBIT 5 COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES AND DISCRETELY PRESENTED COMPONENT UNIT YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 12 Totals Reporting Totals Component Entity Priman Unit (Memorandum Onk) Gmcrnmmt Hospital Internal (Memorandum Period ended Enterprise Sm'ice Only) April 20. 1997 1997 1996 OPERATING INCOME (LOSS) S 472.958 $ (4.101) S 474.857 f 919.203 f 1394,060 $ (2226.327) ADJUSTMENTS TO It OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation 213.107 73.732 266.839 442.$39 729.718 1.064.993 Provision for an ollatibk accounu - 479.839 479.$39 371.393 E malpratuce costs - (232,333) (232.333) - Changes in assets and liabilities that provided (used) cash: Accam4 reeeivabk: Customers and patients 75.603 73.603 (1,343,990) (1,270.3$3) (446333) Outer - (17.723) (17,725) 7,929 (9.796) 131,6$3 prepaid eapenss - 8,424 $,424 (30,278) (21,$34) (26.837) lawntonct - (45.305) (43,303) (18.444) Due to/6m o other foods 1.140.700 - 1,140.700 1.140,700 (693.476) Due w/ftont compoatot unit • hospital 207.100 - 207.100 - 207,100 (207.000) Accounts pnabk (47,692) (4.993) (32,687) 17,914 (34,773) 53.208 Commadepomu (7.419) (7.949) 130,318 142,30 96.469 Accrual for hodrdl c' and poslelosttm costs (3322 - (332290) - (332,290) 2.003,956 Accrued Doe to the City of Kodiak (2$,300) - (28,300) - (2$,300) 11.090 Other warned liabilities 3.197 (6.138) (2.961) (2.961) 3.063 Toed shoo ms.0 1.2234478 51298 1276.776 (333.041) 721.729 2 .363.943 Net stash psoaided by opmat amivaks 1.702.436 49.197 1.731.633 364,136 2.113.789 137.616 CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES: Cash Yanfersed Rant Hospital Compown Unit 203.692 - 203.692 - 203,692 - Operad" ttansfen not to other foods (1.300.000) (1 .300.000) (1.300.000) - Opmmmg tmtden in from "am" Component Uri 726.797 - 726.797 726.797 - Eoaity trmaim not to Capital Project Fonds (1.405.646) (1.403,646) (1,403,646) - Traa 6 of Water ad Seov operations to the City of Kodiak (703.420) (703,420) (703,420) - Transfer of Hospital component unit cask nt Hanphad Enterprise Food - - (127,260) (127,260) - Sim of Alaska. Revenue Sharing pe nocou $crewed 76.333 76333 83.623 Net cash provided by (used for) noncpow fotmncing sowitks (2.678.377) (20678177) (30.927) (2.729.304) 83.623 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES. Acquisition and eaamuedon of capital sum (2.446373) (103.016) (2.531.3$9) (626,716) (3,178,103) ($88,482) Residual mpg, woofer b psaan" pm'aaatem - (076.932) (1,376,932) - lowest paid on noon l noble and espial leauan (249.991) - (249.991) - (249,991) - Proceeds front $nuance of now Pnobk 4.471.910 4.471,910 - 4.471,910 - Prooe . from dtpaal of Cempnmm Unit Hospital operations 2.000.000 - 2,000.000 - 2.000.000 - P, from ntk of eepdpntent 2130 - 2,130 3,435 5,605 870 Ptiaeipalpmsneataam&on sows pniWe (462.648) (46208) (462,648) - Principal pe-eft nude on capital Inn (32,616) - (32.616) (203,344) (236.160) (128223) Ramp of ooreW . n.... ", , 6$.633 68,673 297 .326 Rote* of gilt ruastiesed by donor for capital patebnes 231.953 231.933 2.356 Net cab poaided by lend for) capita and related fmtcy activities: 3262.432 (103,016) 3,137.416 (2,083,149) 1,074,267 (719,633) CASH FLOWS FROM INVESTING AC`nVrnES: Cheap in mm Mint: not is limited: Additions bmacte'cub (1.793 .390) (1,793 .390) (1,793 .390) Under talprania food rs arrangement - 3,086 5,036 689 By donor for specific porpos - - (760) (760) (1.639) lalment and divideeds oo insmooems 8.391 - 8.391 58,670 67,261 109,330 Panehna of inwntau (476.921) (476.923) (476.928) Net cash provided by (used for) mareg nctiyiin: (2.261.727) (2.261.727) 62.996 (2.198.731) 108.600 Net ehaego as cub and cub etpinaknta 24.564 (33,319) (31,233) (1,706,924) (1.73$,179) (389,816) CASH AND EQUIVALENTS. at begiming of year 104.712 136,923 241.637 1,706,924 1.94$.361 2.332.377 CASH AND EQUIVALENTS, at the end of ysur f 129.276 S 81.106 S 210.392 f f 210.382 f 1.948.561 Cab and cab aqun2lean coma of again on control treaanry and tmPosu3' mvesomm tochding thus Oder the eapoon,'eatrieted anneta,' on the balsnce notes. The aeeontpsny s now are on iategrnl pan of then cambind fmaotl atata onU. 12 KODIAK ISLAND BOROUGH NOTES TO THE COMBINED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1997 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 education 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 1996 balances 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 Kodiak Island Hospital and Care Center (Hospital) and operated it through April 20, 1997. Effective April 21, 1997, the Borough has leased the facility, including equipment, to Providence Health Systems in Alaska (Providence). See Note 18. The accounts of the Borough 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. 13 The Borough has the following fund types and account groups: Governmental funds are used to account for the Borough'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 "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 Borough 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 that is recognized when due, and certain compensated absences and claims and judgments that are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes, franchise taxes, severance taxes, licenses, interest and special assessments are susceptible -to- accrual. Other receipts and taxes become measurable and available when cash is received by the Borough 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 requirements have been met. Governmental funds include the following fund types: The general fund is the Borough's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Special revenue funds account for revenue sources that are legally restricted to expenditure for specific purposes, not including expendable trusts or major capital projects. Debt service funds account for the servicing of general long -term debt not being financed by proprietary or nonexpendable trust funds. 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 Borough 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 Borough in a trustee capacity or as an agent on behalf of others. 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. 14 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 1. Pursuant to Alaska Statute 29.45.240, 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, one -half must be paid on or before August 15th and the remainder 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. Real property tax liens are enforced by one general foreclosure proceeding against the delinquent properties. 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 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. To ensure accuracy in the 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 mining/logging area to determine the reasonableness of gross amounts reported on the severance tax returns. Intergovernmental Revenue State - 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 the associated 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. 15 C. Budgets and Budeetary Accountinz Borough The Borough follows these procedures in establishing the budgetary data reflected in the combined financial statements: 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 citizen 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: Appropriations lapse at year-end to the extent that they have not been expended for all funds, except Capital Projects Funds, which lapse at project completion. 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 by ordinance to approve the School District budget in total only and 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, 1997, there were two formal budget revisions to adjust the revenues and expenditures to available resources and program needs. a. All new appropriations are authorized by an appropriation ordinance that amends the annual Hospital Hospital operations are not legally required budget ordinance. to be budgeted. b. A resolution of the Borough Assembly is required to move (appropriate) amounts between departments and projects. D. Assets. Liabilities and Fund Equity Interfund Transactions 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, are budgeted on an annual basis encompassing a fiscal year. Budgets of Capital Projects Funds generally encompass the period from start-up to project completion, which is generally greater than one year. 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 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. 16 1 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. It is the Borough's policy to void all open purchase orders at year-end that are not in the Capital Projects funds. Inventories Expendable operating supplies of the Borough are accounted for using the purchase method and, at June 30, 1997, there were no significant amounts of such items. 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 that includes current costs and amortization of prior service costs. The policy is to fund pension costs accrued. Annual Leave The Borough records its liability for accrued annual leave in the Governmental Fund Types for the amounts estimated to be liquidated with current available resources. The commitment for accrued annual leave not included in the Governmental Fund Types is recorded in the General Long -Term Debt Account Group. All funds record annual vacation 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 "restricted assets." F. Use of Estimates Preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these financial statements. Actual results may differ from the estimates. Significant estimates include the allowance for doubtful accounts, the useful lives of assets and related accumulated depreciation, accrued landfill closure and post closure care costs. 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 are carried at amortized cost. Premiums and discounts on investments are amortized over the life of the investment using the straight -line method of amortization. Deposits. At June 30, 1997, the carrying amount of the Borough's and Component Unit's deposits were $975,647 and the bank balances were $1,442,631. The year end bank balances are both insured by the Federal Deposit Insurance Corporation and collateralized by Government and Agency Obligations and General Obligation Bonds of a Municipality. Collateral, in the amount of $4,695,000, is held in the Borough's name at State Street Bank. 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 uninsured and unregistered investments for which the securities are held by the counterparty's trust 17 department or agent in the Borough's name; category 3 includes uninsured 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, 1997, the Borough's investment balances were categorized as follows: Category Carrying Market 1 2 3 Amount Value U.S. Government Securities $ 10,893,027 $ - $ - $ 10,893,027 $ 11,119,291 Certificate of Deposit 100,000 - 5,323 105,323 105,323 $ 10,993,027 $ - $ 5,323 10,998,350 11,224,614 Municipal League Investment Pool 2,911,409 2,911,409 Total Investments The above deposits of $975,647 and investments of $13,909,759 totaling $14,885,406 are reported under the following captions in the combined financial statements: $ 13,909,759 $ 14,136,023 liability and property insurance, data processing services, the annual independent audit, and snow removal services. These are reflected as in -kind services in the financial statement of the School District. Equity in central treasury S 742,314 Temporary investments 13,909.759 Component Unit cash 233.333 Total deposits and investments S 14,885.406 In March 1997 the Governmental Accounting Standards Board issued Statement No. 31, Accounting for Certain Investments and for External Investment Pools. This statement will require the Borough to report investments at fair value in the balance sheet and report the changes in the fair value of investments as revenue in the operating statement. The Borough is required to adopt this statement on July 1, 1997. The cumulative effect on fund balance upon adoption is estimated to be an increase of $226,000. 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 NOTE 4: HOSPITAL APPROPRIATION I By terms of the operating agreement with the Lutheran Health Systems Management Company, the Borough was ultimately responsible for operating losses, if any, sustained by the Hospital through April 20, 1997. As discussed in Note 18, effective April 21, 1997, the Borough leased the hospital fixed assets to Providence. Under the new agreement, the Borough is responsible for only 50% of the operating losses of the Hospital. In 1997, the Borough received shared revenue from the State of Alaska in the amount of $76,333 required to be passed through to the Hospital. This amount was recorded as revenue by the Hospital. NOTE 5: RETIREMENT COMMITMENTS I The Borough and School District component unit participate in the Alaska State Teachers' Retirement System (TRS), a cost - sharing, multiple - employer pension plan that covers the School District's certificated employees, and the Alaska Public Employees' Retirement System (PERS), that covers most of the employees not covered by TRS. Each plan issues a publicly available financial report that includes 18 financial statements and required supplementary information. Those reports may be obtained from the State of Alaska, Department of Administration, Division of Retirement Benefits, P.O. Box 11 -0203, Juneau, Alaska 99811 -0203. A. PERS Plan description: As of June 30, 1997, all regular employees of the Borough who work more than fifteen hours per week participate in the Alaska Public Employees' Retirement System (PERS). PERS is an agent multiple- employer, statewide defined benefit plan, administered by the State of Alaska. 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. Funding policy: Under State law, covered employees are required to contribute 6.75% of their annual covered salary and the Borough is required to contribute an actuarially determined rate - the current rate is 11.04% of annual covered payroll. Annual pension cost: For the year ended June 30, 1997, the Borough's annual pension cost was $370,000 for PERS which was equal to the required and actual contribution. The actuarial required contribution was computed as part of an actuarial valuation as of June 30, 1994. Significant actuarial assumptions used in the valuation include: (a) a rate of return on the investment of present and future assets of 8.25% per year compounded annually and (b) projected salary increases of 5.5% a year for the first five years of employment and 4.5% per year thereafter, with distinction made between amounts for inflation (4.0 %), merit for the first five years (1.0 %), and productivity (0.5 %). The contribution rate for normal cost is determined using the projected unit credit actuarial funding method. The excess of assets over the actuarial accrued liability is amortized over 5 years. The percentage of pay method is used for amortization purposes. Three -year trend information for PERS B. Component Unit Retirement Commitments The following is a summary of selected information on the component unit's retirement commitments. Complete pension disclosures are presented in the component unit financial statements. School District participation in PERS, a defined benefit agent multiple- employer plan, is separate from the Borough's participation. Benefits are the same as described for the Borough's participation. For the years ended June 30, 1997, 1996 and 1995, the School District's annual pension cost was $335,000, $355,000 and $361,000 and equal to the required and actual contributions. TRS is a cost - sharing, multiple - employer defined benefit plan. Participation is compulsory for certified personnel. Employees hired prior to July 1, 1990 with eight years or more of credited service are entitled to annual pension benefits beginning at normal retirement age 55 equal to 2% of their highest three -year average annual compensation for each year of service. The Plan permits early retirement at age 50. For employees hired after June 30, 1990, the normal and early retirement ages are 60 and 55, respectively. Employees may elect to receive their pension benefits in the form of a joint or survivor annuity. Effective January 1, 1987, a married member who retires must receive his or her 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. For the years ended June 30, 1997,1996 and 1995, the School District's annual pension cost was $1,303,000, $1,256,000, and $1,261,000, which was equal to the required and actual contribution. 19 Annual Percentage Net Year pension of APC pension ended co st (APC) co ntributed obli gation 6/30/95 $ 298,000 100% $ - 6/30/96 387,000 100% - 6/30/97 370,000 100% - B. Component Unit Retirement Commitments The following is a summary of selected information on the component unit's retirement commitments. Complete pension disclosures are presented in the component unit financial statements. School District participation in PERS, a defined benefit agent multiple- employer plan, is separate from the Borough's participation. Benefits are the same as described for the Borough's participation. For the years ended June 30, 1997, 1996 and 1995, the School District's annual pension cost was $335,000, $355,000 and $361,000 and equal to the required and actual contributions. TRS is a cost - sharing, multiple - employer defined benefit plan. Participation is compulsory for certified personnel. Employees hired prior to July 1, 1990 with eight years or more of credited service are entitled to annual pension benefits beginning at normal retirement age 55 equal to 2% of their highest three -year average annual compensation for each year of service. The Plan permits early retirement at age 50. For employees hired after June 30, 1990, the normal and early retirement ages are 60 and 55, respectively. Employees may elect to receive their pension benefits in the form of a joint or survivor annuity. Effective January 1, 1987, a married member who retires must receive his or her 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. For the years ended June 30, 1997,1996 and 1995, the School District's annual pension cost was $1,303,000, $1,256,000, and $1,261,000, which was equal to the required and actual contribution. 19 C Required Supplementary Information - Schedule of Funding Progress for PERS (Dollar amounts in thousands for the primary government only) NOTE 6: FIXED ASSETS A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1997 follows: Actuarial Actuarial Excess Actuarial value of accrued (deficiency) valuation assets liability (AAL) of assets date (a) (b) (a -b) 6/30/94 S 5,009 S 5,214 S (205) 6/30/95 5,896 5,962 (66) 6/30/96 6,652 6,285 367 NOTE 6: FIXED ASSETS A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1997 follows: July 1, 1996 Excess Deductions June 30, 1997 (deficiency) as a Funded Covered percentage of ratio payroll covered payroll (a/b) (c) ((a -b) /c) 96% $ 2,577 (8.0 %) 99% 2,652 (2.5 %) 106% 2,970 12.4% NOTE 6: FIXED ASSETS A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1997 follows: The following is a summary of Proprietary Fund fixed assets at June 30, 1997: July 1, 1996 Additions Deductions June 30, 1997 Government F F und Land and improvements Land $ 5,397,389 S - S - S 5,397,389 Buildings 74,905,568 13,394,453 - 88,300,021 Improvements other than buildings 846,690 - - 846,690 Machinery and equipment 1,386,355 36,713 - 1,423,068 Construction work -in- progress 26,326,595 11,732,03 13,390,1 24,668,482 $108,862,59 S 25,163,19 $ 13,390,14 $120,635,650 School District Equipment S 3,168,375 S 469,69 S 187,7 S 3,450,327 The following is a summary of Proprietary Fund fixed assets at June 30, 1997: 20 Internal Enterprise Service F F und Land and improvements S 40,275 S - Building and improvements 6,351,059 - Equipment 5,973,355 912,329 Work in process 2 , 3 77,778 - 14,742,467 912,329 Less: accumulated depreciation (5,8 77,774) ( Net fixed assets S 8 ,864,693 S 407,583 20 n Depreciation lives for Proprietary Fund fixed assets are as follows: ' Building and improvements 15 -50 years Equipment 5 -20 years An expenditure qualifies for capitalization as a fixed asset if the total cost is $500 or more, the asset will last longer than one year, and the asset is not consumable. Improvements to an existing asset that increase the life or value of that asset also qualify for capitalization, and are added to the carrying amount of the original asset. All fixed assets are depreciated over the estimated remaining useful life of the asset on a straight -line basis. The Borough does not capitalize either infrastructure fixed assets or improvement to such. 21 NOTE 7: LONGTERM DEBT The following is a summary of long -term debt for the year ended June 30, 1997: Interest Principal Payments Type of Debt Rates Dates Environmental Protection Agency Asbestos Abatement Loan 0.0 %' General Obligation School Refunding Bonds - 1989 Series General Obligation Bonds - 1993 Series General Obligation Bonds - 1994 Series Accrued annual leave 6.6 -8.0% 8/1 -2/1 Issue Maturity 2/15/99 730,000 Date Dates Dates Amount 2/15/02 825,000 2/15/03 860,000 6/20/85 11/8/05 12/31/97 S 10,410 2/15/06 980,000 06/30 and 12/31 7,480,000 2/15/07 1,030,000 1998 thru 2004 14 x 10,417 2/15/09 1,145,000 2/15/10 156.248 5/1/89 8 /1 /00 8/1/97 945,000 2/15/13 1,415,000 8/1/98 1,015,000 9,985.000 8/1/99 1,080,000 S 22,067,027 8/1/00 1.155.000 4,195,000 3.90 -7.00% 8/15 -2/15 11/15/93 2/15/06 5.40 -5.50 8/15 -2/15 11/15/93 2/15/14 0.00% • Interest free unless delinquent, then 7% plus fees and penalties. 22 2/15/98 695,000 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 7,480,000 2/15/07 1,030,000 2/15/08 1.085,000 2/15/09 1,145,000 2/15/10 1,205,000 2/15/11 1,270,000 2/15 /12 1,340,000 2/15/13 1,415,000 2/15/14 1,495.000 9,985.000 250,779 S 22,067,027 Authorized Prior Years C urrent Y ear Fiscal Balance at Year Amount Issued Retired Julv 1. 1996 Issued 1985 S 375.000 $ 375.000 S 197,919 $ 177.081 $ 1989 10,000,000 10,000.000 4,915.000 5,085,000 1994 9,215,000 9,215,000 1,080,000 8,135,000 Balance at Retired June 30. 1997 - $ 20.833 $ 156,248 890.000 4,195,000 655,000 7,480,000 1994 9 9,985,000 - 9,985,000 - - 9,985,000 1997 258.322 232,549 240.092 250,779 S 29.575.000 $ 29.575.000 S 6,192.919 S 23.640.403 S 232.549 $ 1.805.925 S 22.067.027 23 The annual requirements to amortize all general obligation bonded debt and the EPA loan payable outstanding as of I June 30, 1997, including interest payments of $9,924,023 on the general obligation debt, are as follows: The amount of $549,569 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. NOTE 8: CAPITAL LEASE OBLIGATIONS The Hospital Enterprise Fund leases various equipment under long -term lease agreements at nominal annual interest rates ranging from 6.14% to 8.775 %. The initial cost of such equipment included in fixed assets at June 30, 1997, is approximately $2,145,000. Accumulated amortization on the leased equipment is approximately $739,000 at June 30, 1997. Included among the leased assets are $1,599,000 of equipment assumed from Kodiak Island Hospital and Care Center (see Note 18), with associated capital lease obligations of $1,244,518, as of June 30, 1997. The minimum required lease payments under the capital leases for the next five years, including interest of $291,887, are as follows: Fiscal year end June 30 1998 General EPA Loan 437,619 June 30, Obligation Payables Total 1998 $ 2,779,284 S 20,833 S 2,800,117 1999 2,780,416 20,833 2,801,249 2000 2,774,398 20,833 2,795,231 2001 2,770,663 20,833 2,791,496 2002 1,577,058 20,833 1,597,891 Thereafter 18,902,204 52,083 18,954,287 $ 31,584,023 $ 156,248 $ 31,740,271 The amount of $549,569 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. NOTE 8: CAPITAL LEASE OBLIGATIONS The Hospital Enterprise Fund leases various equipment under long -term lease agreements at nominal annual interest rates ranging from 6.14% to 8.775 %. The initial cost of such equipment included in fixed assets at June 30, 1997, is approximately $2,145,000. Accumulated amortization on the leased equipment is approximately $739,000 at June 30, 1997. Included among the leased assets are $1,599,000 of equipment assumed from Kodiak Island Hospital and Care Center (see Note 18), with associated capital lease obligations of $1,244,518, as of June 30, 1997. The minimum required lease payments under the capital leases for the next five years, including interest of $291,887, are as follows: Fiscal year end June 30 1998 $ 493,419 1999 437,619 2000 437,619 2001 433,124 2002 246,987 $ 2,048,768 24 NOTE 9: NOTE PAYABLE As of June 30, 1997, the Borough had the following note payable outstanding in an enterprise fund: Note payable to Signet Leasing and Finance Corporation, due in monthly installments of $57,693, including interest (at an effective annual rate of 6.4 %); secured by equipment S 3,463,398 Less current portion of note payable 492,063 $ 2,971,335 Future required minimum principal payments at June 30, 1997 are as follows: Fiscal year end June 30, 1998 $ 492,063 1999 523,349 2000 556,624 2001 592,015 2002 629,656 Thereafter 669,691 $ 3,463,398 NOTE 10: CAPITAL PROJECT FUNDS CONSTRUCTION COMMITMENTS A summary of Capital Projects Funds construction commitments at June 30, 1997 follows: Various Borough Projects $ 57,449 Hospital Bond Improvements 1,655,084 State Capital Grants 96,766 Kodiak Fisheries Research Center 15,217,663 $ 17,026,962 Resources are presently available or committed to finance construction commitments at June 30, 1997, for all funds, inclusive of those resources appropriated at year -end. 25 NOTE 11: ENTERPRISE FUND SEGMENT INFORMATION The Borough owns and operates a Municipal Solid Waste Collection and Disposal Fund, a Hospital Facilities Fund (See Note 18), and a 911 Services Fund. Segment financial data as of and for the year ended June 30, 1997, for those funds are as follows: Municipal Solid Waste Collection Hospital and Disposal Facilities 911 Services Total Operating revenues Depreciation expense Operating income (loss) Net income Amortization of contributions in aid of construction Property, plant and equipment additions Net working capital Total assets Total equity $ 2,352.327 $ 120,000 $ 93,592 $ 2,472,327 110,601 102.506 - 213,107 476.498 (91,132) 93,592 ' 385,366 475.980 (1,181,476) 93,592 (611,904) 76.805 - - 76,805 ' 68.595 2,377,778 - 2,446.373 72.741 534,650 93,592 607,391 2.452.097 9,918,819 93,592 12,464,508 284,733 3,117,036 93,592 ' 3,495,361 NOTE 12: DEFERRED COMPENSATION PLAN The Kodiak Island Borough has a deferred compensa- tion plan created and amended 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 deferred under this plan are held in a trust that was established during the year for the exclusive benefit of plan participants. Amounts contributed to the plan by participants during the year ended June 30, 1997, was $148,836. The Borough assumed the administration of the Hospital component unit's deferred compensation plan. This plan has also been amended in accordance with Internal Revenue Code Section 457, that established a plan trust. The Borough's plan is managed by the International City Managers Association Retirement Corporation and the Hospital component unit's plan is managed by AETNA. The Borough believes that these plans do not meet the criteria in NCGA Statement No. 1, Governmental Accounting and Reporting Principles, for inclusion as fiduciary funds. NOTE 13: INSURANCE AND RISK RETENTION The Kodiak Island Borough is exposed to numerous risks of loss associated with the operations of a government. These potential losses include, but are not limited to, employee relations and injuries, contracts, theft, loss or damage of property and general liability. The Borough manages its risks from these potential losses by participating in the Alaska Municipal League Joint Insurance Association, as well as purchasing commercial insurance coverage. This insurance has provided the Borough with adequate coverage in the past. There were no significant changes in insurance coverage obtained and there were no claims or settlements that exceeded insurance coverage in any of the past three fiscal years. The Borough is a member of the Alaska Municipal League Joint Insurance Association (JIA), a governmental insurance pool established by the Alaska Municipal League. The JIA provides the Borough coverage for property, including building and contents, automobile, mobile equipment and data processing equipment, casualty, including general liability, public officials and employees liability, auto liability and employee benefit liability; workers' compensation, including employers' liability; commercial blanket bond; and time element. 26 NOTE 14: INDIVIDUAL FUND DISCLOSURES Interfund Receivables and Payables A summary of interfund receivables and payables at June 30. 1997, is as follows: $ 4,674,525 $ 4,674,525 Fund Balance and Retained Earnines Deficits: The fund balance and retained earnings deficits at June 30, 1997, are as follows: Special Revenue Funds: Mental Health Center Receivable Payable General Fund $ - $ 1,439,525 Special Revenue Funds - 127,390 Capital Projects Funds: Fire Protection Area No. 1 150,000 - Womens Bay Fire Department 80,000 - Monashka Bay Road Service Area 30,000 - Service District No. 1 305,000 - Womens Bay Service Area 125,000 - Mental Health Center 5,000 600,000 Coastal Management - 60,000 Child Care Assistance Program - 45,000 Land Sales - 130,000 Building and Grounds - 120,000 Kodiak Arts Council - 5,000 Facilities Fund 20,000 - Debt Services Funds - Other 200,000 - Capital Project Funds - Hospital Bond Improvements 1,500,000 400,000 State Capital Grants - 200,000 School Bond Improvements - 150,000 Kodiak Fisheries Research Center 240,000 20,000 Enterprise Funds - Municipal Solid Waste Collection and Disposal - 5,000 Hospital 660,000 1,500,000 Component Units - School District 1,359,525 - $ 4,674,525 $ 4,674,525 Fund Balance and Retained Earnines Deficits: The fund balance and retained earnings deficits at June 30, 1997, are as follows: Special Revenue Funds: Mental Health Center $ 483,951 Coastal Management 141 Land Sales 94,771 Buildings and Grounds 127,390 Capital Projects Funds: School Bond Improvements 179,459 Hospital Bond Improvements 73,038 State Capital Grants 28,046 Enterprise Fund: Municipal Solid Waste Collection and Disposal 1,474,443 Hospital Facilities 1,181,476 $ 3,642,715 Management intends to fund the Special Revenue Funds deficits in fiscal year 1998 through transfers from other funds and fund the deficit in the Enterprise Fund through an increase in service charges. 27 I. Transfers 1 Interfund operating transfers and transfers from component units have been made in accordance with budget ' ordinances. Funds are transferred from one fund to support expenditures of other funds in accordance with the authority established for the individual fund. Transfers between fund types and component units during the year ended June 30, 1997, were as follows: Excess of Expenditures Over Appropriations General Fund The following departments' expenditures exceeded their appropriations: Department Building Official School District Support The following funds' expenditures exceeded their appropriations: Special Revenue Funds Fund Buildings and Grounds Women Bay Service Area Mental Health Center Excess $ 4,520 6,832 $ 11,352 Excess $ 77,252 41,522 247,830 $ 366,604 28 Tra n s fers In School Special Debt Capital District Transfers General Revenue Service Projects Enterprise Component Out Fund Funds Funds Funds Funds Unit Fund Types General Fund S 5,882,810 $ S 702,530 S 935,280 S 250,000 $ S 3,995,000 Special Revenue Funds 324,665 20,000 84,505 220,160 Debt Service Funds 1,157,297 9,672 913 - 1,146,712 Capital Projects Funds 887,177 - - 887,177 Enterprise Funds 1,500,000 1,500,000 Component Unit Hospital 1,726,797 - 1,000,000 726,797 School District 1,718,131 1,658,131 60,000 - Total Transfers S 13,196,877 S 9,672 S 723,443 S 2,677,916 S 5,064,049 $ 726,797 S 3,995,000 Excess of Expenditures Over Appropriations General Fund The following departments' expenditures exceeded their appropriations: Department Building Official School District Support The following funds' expenditures exceeded their appropriations: Special Revenue Funds Fund Buildings and Grounds Women Bay Service Area Mental Health Center Excess $ 4,520 6,832 $ 11,352 Excess $ 77,252 41,522 247,830 $ 366,604 28 1 I 1 1 1 r '1 Proprietary Funds' reconciliation of contributed capital for the year ended June 30, 1997, is as follows: NOTE 15: 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 for a number of years after closure. In addition to operating expenses related to current activities of the landfill, an expense provision and related liability are 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 $1,984,423 as of June 30, 1997, which is based on 48% usage (filled) of the landfill. The landfill is estimated to be filled and unusable by the year 2001. Of the total liability at June 30, 1997, a reduction of $332,290 was recorded in the current year based on current year usage and changes in estimates. An estimated additional $2,130,577 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 $4,115,000 is based on the amount that would be paid if the landfill were closed as of June 30, 1997. 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 complies with these requirements by annually recording the liability based on the estimates provided by the Kodiak Island Borough's environmental engineer. The Borough has raised the costs of the utility to help cover the liability and has also included the liability in its 1998 budget. 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 16: SALE OF SHUYAK ISLAND The Borough entered into an agreement in December 1995 with the Exxon Valdez Oil Spill Trustee Council to sell all of its rights on Shuyak Island for $42 million to the State of Alaska. The Borough received $8 million in fiscal year 1996, and $2,194,266 in fiscal year 1997, and will receive the balance of the sale in the following payments: October I 1997 4,000,000 Enterprise Funds 4,000,000 1999 4,000,000 Municipal Solid 4,000,000 2001 Internal 2002 Waste Collection Service and Disposal Water Sewer Hospital Fund Contributed capital at beginning of year S 1,835.981 S 4,673,866 S 8,100.525 S - S 617382 Amortization of contributions in aid of construction (76,805) Residual equity transfer in from Component Unit Hospital 5,704,158 Residual equity transfer out to capital project fund (1,405,646) Transfer of water and sewer operations to the City of Kodiak - (4.673.866) (8.100,525) - - Contributed capital at end of year S 1.759,176 S - S - S 4.298,512 S 617,382 NOTE 15: 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 for a number of years after closure. In addition to operating expenses related to current activities of the landfill, an expense provision and related liability are 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 $1,984,423 as of June 30, 1997, which is based on 48% usage (filled) of the landfill. The landfill is estimated to be filled and unusable by the year 2001. Of the total liability at June 30, 1997, a reduction of $332,290 was recorded in the current year based on current year usage and changes in estimates. An estimated additional $2,130,577 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 $4,115,000 is based on the amount that would be paid if the landfill were closed as of June 30, 1997. 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 complies with these requirements by annually recording the liability based on the estimates provided by the Kodiak Island Borough's environmental engineer. The Borough has raised the costs of the utility to help cover the liability and has also included the liability in its 1998 budget. 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 16: SALE OF SHUYAK ISLAND The Borough entered into an agreement in December 1995 with the Exxon Valdez Oil Spill Trustee Council to sell all of its rights on Shuyak Island for $42 million to the State of Alaska. The Borough received $8 million in fiscal year 1996, and $2,194,266 in fiscal year 1997, and will receive the balance of the sale in the following payments: October I 1997 4,000,000 1998 4,000,000 1999 4,000,000 2000 4,000,000 2001 4,000,000 2002 11,805,734 $6 million of the proceeds will be used for the construction of the Kodiak Fisheries Research Center. The remainder will be placed into a facility special revenue fund and used for future capital projects. 29 NOTE 17: 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 believes that all the material risks to which the Borough may be exposed have been adequately insured via joint pool and commercial insurance. 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 not be material. NOTE 18: DISPOSAL OF HOSPITAL OPERATIONS The Kodiak Island Borough Assembly passed an ordinance to cease operations of the * Kodiak Island Hospital and Care Center, effective April 21, 1997, and to lease the hospital premise -and equipment to Sisters of Providence d.b.a. Providence Alaska Medical Center, who assumed responsibility for the hospital's operations as of April 21, 1997. The lease agreement is effective for a term of ten years from that date and contains provisions for an additional ten -year option. The hospital fixed assets, the lease income, and all other costs relating to the agreement are accounted for by the Borough in the Hospital Enterprise Fund. Under the terns of the agreement, certain assets have been transferred to Providence and certain liabilities assumed by them. The Borough received a down payment of $2,000,000 at the execution of the lease. For accounting purposes this down payment is treated as consideration for the net assets and liabilities transferred to /assumed by Providence and recorded in the Hospital Enterprise Fund as a component of the Loss on Disposal of Hospital Operations. The assets and liabilities transferred to Providence consisted of the following: Assets transferred to Providence: Accounts receivable Prepaid expenses Other Property and equipment, net Liabilities assumed by Providence: Accounts payable Accrued expenses Capital lease obligations Net assets transferred to Providence $ 2,692,855 107,013 140,513 45,765 2,986,146 136,060 829,474 40,515 1,006,049 $ 1,980,097 1 s 1 1 30 11 1 The remainder of the assets and liabilities of the Kodiak Island Hospital and Care Center have been retained by the Borough, and consist of the following: Assets transferred to Kodiak Island Borough: Cash and cash equivalents $ 227,363 Inventories 277,007 Other receivables 71,203 Property and equipment, net 4,393,006 4,968,579 Liabilities assumed by Kodiak Island Borough: Capital lease obligations 1,244,518 Net assets transferred to Kodiak Island Borough $ 3,724,061 The agreement with Providence specifies that the Borough shall provide at least $150,000 per year for the purchase of new and replacement equipment for the hospital. The Borough is also required to fund any major maintenance and repairs projects exceeding $10,000 in cost. Should the Borough wish to terminate the lease agreement without cause, the Borough would be required to refund the $2,000,000 down payment on the lease in proportion to the number of years remaining on the ten -year term of the lease, at the rate of $200,000 per year for each remaining year. For accounting purposes such payment would be considered to be a penalty for the early termination of the lease. The $5,704,158 residual equity transfer from Kodiak Island Hospital and Care Center to the Borough consisted of the following: NOTE 19: TRANSFER OF WATER AND SEWER FUND ASSETS AND OPERATIONS In June 1996, the Assembly approved Resolution No. 96 -16 and contracted with the City of Kodiak (City) for the City to assume the ownership, maintenance and operation of the existing water and sewer utilities in Service District No. 1. On July 1, 1996, the water and sewer fund assets and operations thereof were transferred from the Borough to the City. The transfer of assets resulted in the recording of a decrease in equity of $715,400 from the Water Fund and $694,357 from the Sewer Fund. These funds experienced minor activity in fiscal year 1997 relating to closing out the funds and carrying out the transfer of assets, as well as ensuring transfer of all funds owed to the City for water and sewer services. The 1996 operations of the Water and Sewer Funds have been reclassified to income from discontinued Net assets and liabilites operations. transferred to the Borough $ 3,724,061 Net assets and liabilities transferred to Providence through the Borough 1,980,0 $ 5,70 4,158 The 1996 operations of the Component Unit Hospital have been reclassified to income from discontinued operations. 31 NOTE 20: SUBSEQUENT EVENT Sale of Revenue Bonds In fiscal year 1998, the Borough Assembly approved the sale of $8,000,000 in revenue bonds from a newly established enterprise fund, the Kodiak Fisheries Research Center Enterprise Fund. The bonds were purchased by the Borough Facilities Special Revenue Fund. The proceeds of these revenue bonds are to be used for construction of the Kodiak Fisheries Research Center, which has been leased to Federal and State of Alaska agencies. Real and Personal Property Taxes At the October 7, 1997, general election, the voters of the Kodiak Island Borough passed an Ordinance that established the maximum allowable tax revenue levied upon Real and Personal Property within the Boundaries of the Kodiak Island Borough. Basically, this ordinance states that the assembly can now only raise the mill rate to a level which will bring in the same amount of tax revenue as the preceding fiscal year. Exceptions: the amount of taxes levied or imposed can increase (a) to adjust for inflation; (b) to take into account new buildings and land coming onto the tax roll; (c) to make new payments on bonds; (d) to pay for new legal judgments entered against the Borough; (e) to pay for expenses in emergencies. This Ordinance cannot be negated or changed for a period of two years. This means that it will be effective for fiscal years 1999 and 2000. Chance in Form of Government At the October 7, 1997, general election, the voters of the Kodiak Island Borough passed an Ordinance that changed the form of government from a mayor plan of government to a manager plan of government. This change will become effective on October 19, 1998. 32 1 1 h, 1 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. r KODIAK ISLAND BOROUGH GENERAL FUND BALANCE SHEETS AS OF JUNE 30, 1997 AND 1996 EXHIBIT A -1 ASSETS Equity in central treasury Temporary investments Accounts receivable Due from State of Alaska Due from Federal Government Property taxes: Delinquent taxes Allowance for uncollectible delinquent taxes Accrued interest Due from other funds TOTAL LIABILITIES AND FUND BALANCE LIABILITIES: Accounts payable Payroll taxes and employee benefits Other accrued liabilities Due to component units Due to other funds Total liabilities FUND BALANCE: Unreserved - designated for subsequent year expenditures Total fund balance TOTAL 1997 1996 $ 46,299 $ 411,460 3,208,202 6,587,005 210,998 241,187 66,556 35,169 - 238,948 173,861 267,575 (15,828) (15,828) 60,890 - - 374,500 $ 3,750,978 $ 8,140,016 $ 236,780 $ 285,614 24,009 25,523 1,723 585 1,359,525 4,856,069 80,000 - 1,702,037 5,167,791 2,048,941 2,972,225 2,048,941 2,972,225 $ 3,750,978 $ 8,140,016 33 KODIAK ISLAND BOROUGH GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) EXHIBIT A -2 I 1997 Variance - Favorable 1996 Budg Actual (Unfavorable) Actual REVENUES: Property taxes: Real Personal Motor vehicle Penalty and interest Total property taxes Severance taxes: Fish Mining Logging Total severance taxes Intergovernmental: State sources: State Shared Revenue Municipal Assistance Raw Fish Tax Payments in Lieu of Taxes Electric Co -Op Tax Miscellaneous Total state sources Federal sources Payments in Lieu of Taxes Miscellaneous Total 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 revenues Investments and property: Interest income Total investments and property Total revenues $ 3,708,830 $ 3,703,967 $ (4,863) $ 3,629,646 710,730 705,701 (5,029) 695,573 165,000 187,339 22,339 157,754 160,000 139,392 (20,608) 162,066 4,744,560 4,736,399 (8,161) 4,645,039 513,000 566,243 53,243 790,310 6,750 7,360 610 11,170 236,250 272,035 35,785 247,020 756,000 845,638 89,638 1,048,500 331,009 331,009 - 362,692 242,880 231,102 (11,778) 279,787 1,276,387 1,349,834 73,447 1,077,121 16,387 16,387 - 15,078 8,000 10,622 2,622 10,220 300 152 (148) 128 1,874,963 1,939,106 64,143 1,745,026 456,929 456,929 - 412,583 256,200 237 (255,963) 239,095 713,129 457,166 (255,963) 651,678 2,588,092 2,396,272 (191,820) 2,396,704 40,000 33,882 (6,118) 47,752 5,500 2,830 (2,670) 8,445 2,020 2,008 (12) 2,015 33,000 37,871 4,871 33,133 25,800 31,892 6,092 193,755 106,320 108,483 2,163 285,100 445,000 371,414 (73,586) 452,196 445,000 371,414 (73,586) 452,196 8,639,972 8,458,206 (181,766) 8,827,539 (continued) 34 I I KODIAK ISLAND BOROUGH EXHIBIT A -2, continued GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 EXPENDITURES: Borough assembly Borough mayor Borough clerk Borough attorney Finance department Assessing department Community development department Building official Economic development General and administration Emergency preparedness School district support Health and sanitation department Education, culture and recreation Total expenditures Budget Actual Variance - Favorable 1996 (Unfavorable) Actual Excess of revenues over expenditures OTHER FINANCING SOURCES (USES): Operating transfers in from other funds Operating transfers to other funds Operating transfers to component unit Total financing uses Deficiency of revenues and transfers in over expenditures and transfers out FUND BALANCE, at beginning of year FUND BALANCE, at end of year $ 112,020 $ 110,699 $ 1,321 $ 110,009 198,510 194,574 3,936 200,180 275,700 273,955 1,745 287,135 139,000 125,258 13,742 160,756 566,830 560,870 5,960 615,319 324,990 323,492 1,498 337,107 432,920 423,769 9,151 435,476 79,400 83,920 (4,520) 85,500 84,000 71,684 12,316 136,485 329,330 323,143 6,187 405,883 5,500 4,410 1,090 4,295 256,640 263,472 (6,832) 268,938 589,591 585,806 3,785 563,867 163,300 163,300 - 163,300 3,557,731 3,508,352 49,379 3,774,250 5,082,241 4,949,854 (132,387) 5,053,289 - 9,672 9,672 - (1,896,810) (1,887,810) 9,000 (1,528,934) (3,995,000) (3,995,000) - (3,975,000) (5,891,810) (5,873,138) 18,672 (5,503,934) $ (809,569) (923,284) $ (113,715) (450,645) 2,972,225 3,422,870 $ 2,048,941 $ 2,972,225 35 KODIAK ISLAND BOROUGH EXHIBIT A -3 I GENERAL FUND SCHEDULE OF EXPENDITURES AND'TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 Variance - Favorable 1996 Budget Actual (Unfavorable) Actual EXPENDITURES: Borough assembly: Personnel services Fringe benefits Support goods and services Political lobbyist Total Borough mayor: Personnel services Fringe benefits Support goods and services Capital outlay Total Borough clerk: Personnel services Fringe benefits Support goods and services Capital outlay Total $ 16,800 $ 16,800 $ - $ 17,286 7,937 1,620 1,855 (235) 1,462 33,195 45,600 41,352 4,248 41,062 139,000 48,000 50,692 (2,692) 50,199 Finance department: 112,020 110,699 1,321 110,009 118,280 123,487 (5,207) 123,108 374,014 39,480 36,810 2,670 37,621 2,095 40,750 34,277 6,473 39,451 i (6,448) 194,574 200,180 5,500 198,510 3,936 14,147 Allocated to projects (82,160) I 133,870 132,776 1,094 140,952 566,830 47,330 43,303 4,027 48,307 Assessing department: Personnel services 94,500 97,876 (3,376) 94,876 - - - 3,000 63,533 275,700 273,955 1,745 287,135 - Borough attorney: Legal fees 100,000 92,063 7,937 111,450 Support goods and services 39,000 33,195 5,805 49,306 Total 139,000 125,258 13,742 160,756 Finance department: Personnel services 374,560 369,296 5,264 374,014 Fringe benefits 120,040 117,945 2,095 115,686 Support goods and services 148,890 155,338 (6,448) 238,282 Capital outlay 5,500 8,601 (3,101) 14,147 Allocated to projects (82,160) (90,310) 8,150 (126,810) Total 566,830 560,870 5,960 615,319 Assessing department: Personnel services 203,840 210,231 (6,391) 205,404 Fringe benefits 67,330 62,026 5,304 63,533 Contracted services - - - - Support goods and services 45,840 47,291 (1,451) 66,918 Capital outlay 11,310 7,944 3,366 1,252 Allocated to projects (3,330) (4,000) 670 - Total 324,990 323,492 1,498 337,107 (continued) 36 I I KODIAK ISLAND BOROUGH EXHIBIT A -3, continued GENERALFUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 Borough engineering and facilities department: Personnel services $ Fringe benefits Contracted services Support goods and services Capital outlay Allocated to projects Total Community development department: Personnel services Fringe benefits Contracted services Support goods and services Capital outlay Allocated to projects Total Building official: Contracted services Support goods and services Total Economic development: General services: Personnel services Fringe benefits Contracted services Support goods and services Contributions: Kodiak Chamber of Commerce Kodiak Convention Bureau Total General and administration: Personnel services Fringe benefits Professional fees Support goods and services Capital outlay Total Variance - Favorable 1996 Budget Actual (Unfavorable) Actual 216,350 $ 144,488 $ 71,862 $ 113,267 74,090 41,703 32,387 36,696 14,000 4,414 9,586 2,619 68,480 66,380 2,100 75,594 2,000 1,350 650 1,967 (374,920) (258,335) (116,585) (230,143) 306,210 301,972 4,238 296,116 99,350 89,033 10,317 92,142 - - - 3,395 65,290 66,603 (1,313) 73,894 700 4,653 (3,953) 5,555 (38,630) (38,492) (138) (35,626) 432,920 423,769 9,151 435,476 81,241 A'750 85,500 40 - 26 30,000 20,851 1,000 767 33,000 20,000 84,000 39,440 56,060 104,300 129,530 329,330 (40) 1,488 (26) 152 9,149 84,593 233 252 30,000 3,000 30,000 20,000 - 20,000 71,684 12,316 136,485 37,692 1,748 38,114 65,970 (9,910) 111,285 111,391 (7,091) 97,083 108,090 21,440 156,596 - - 2,805 323,143 6,187 405,883 (continued) 37 75,000 79,343 (4,343) 4,400 4,577 (177) 79,400 83,920 (4,520) KODIAK ISLAND BOROUGH EXHIBIT A -3, continued I GENERALFUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) (continued) 38 1997 Variance - Favorable 1996 Budget Actual (Unfavorable) Actual Emergency preparedness: Support goods and services $ 4,205 $ 3,115 $ 1,090 $ 4,295 Capital outlay 1,295 1,295 - - Total 5,500 4,410 1,090 4,295 School district support: Data processing 198,340 198,340 - 214,690 Audit expense 22,300 28,136 (5,836) 19,664 Support goods and services 36,000 36,996 (996) 34,584 Total 256,640 263,472 (6,832) 268,938 Health and sanitation department: Emergency Medical Services 32,450 30,665 1,785 30,665 Animal Control 60,500 60,500 - 48,000 Council on Alcoholism 44,041 44,041 - 45,387 State Health Services Villages 14,656 14,656 - 21,406 State Health Services KANA 4,885 4,885 - - Women's Resource Crisis Center 41,417 41,417 - 42,059 American Red Cross 3,000 3,000 - 3,000 Alaska Borough attorney - - - - Kodiak Baptist Mission 45,822 45,822 - 47,570 Small World (Day Care) 18,000 18,000 - 18,000 Special Olympics 7,000 7,000 - 7,000 Health Center Support 2,000 2,000 - 2,000 Senior Citizen Support 24,000 24,000 - 24,000 Kodiak Respite Care 5,000 5,000 - 5,000 Rainbow Child Care Center 2,500 2,500 - 2,500 Salvation Army 7,500 7,500 - 7,500 Brother Francis Shelter 20,000 20,000 - 20,000 City Prisoners Hospital Care 50,000 50,000 - 50,000 Emergency Travel 2,000 - Data Processing 109,820 109,820 - 94,780 Ambulance Service 95,000 95,000 - 95,000 Total 589,591 585,806 1,785 563,867 (continued) 38 I I I I KODIAK ISLAND BOROUGH EXHIBIT A -3, continued GENERALFUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 39 1997 Variance - Favorable 1996 Budget Actual (Unfavorable) Actual Education, culture and recreation: KMXT Public Radio $ 15,000 $ 15,000 $ - $ 15,000 Historical Society 9,000 9,000 - 9,000 Summer Basketball Kodiak Island Sportsman Association 5,000 2,000 5,000 2,000 5,000 2,000 Kodiak Art Council 14,000 14,000 14,000 Village Libraries 18,000 18,000 - 18,000 Chiniak Public Library City of Kodiak Library 3,000 3,000 3,000 3,000 - 3,000 3,000 Head Start 8,000 8,000 _ 8,000 Kodiak College 34,000 34,000 - 34,000 Kodiak Little League 5,000 5,000 _ 5,000 Santa to the Villages 2,300 2,300 2,300 Karluk IRA Council 20,000 20,000 20,000 KANA Youth Olympics 2,000 2,000 - 2,000 KANA Family Center 16,000 16,000 - 16,000 Kodiak Youth Services Network 5,000 5,000 5,000 Alaska Future Leaders 2,000 2,000 _ 2,000 Total 163,300 163,300 - 163,300 Total expenditures 3,557,731 3,508,352 47,379 3,774,250 OTHER FINANCING SOURCES (USES): Operating transfers out to other funds: Special revenue funds: Mental Health Center (516,420) (516,420) - (235,000) Building and Grounds (186,110) (186,110) (146,340) Oil Spill Cleanup _ (25,487) Debt service fund: Schools (944,280) (935,280) 9,000 (890,907) Capital projects fund: Various Borough projects (250,000) (250,000) - (231,200) Total operating transfers out (1,896,810) (1,887,810) 9,000 (1,528,934) (continued) 39 KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) EXHIBIT A -3, continued I 1997 Variance - Favorable 1996 Budget Actual (Unfavorable) Actual Operating transfers to component units: Kodiak Island School District (3,995,000) (3,995,000) - (3,975,000) Total operating transfers out (5,891,810) (5,882,810) 9,000 (5,503,934) Total financing uses (5,891,810) (5,882,810) 9,000 (5,503,934) Total expenditures and transfers $ 9,449,541 $ 9,391,162 $ 58,379 $ 9,278,184 40 1 r] 1 11 1 I 1 1 1 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. KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET AS OF JUNE 30, 1997 (with comparative totals for 1996) Fire and Road Service Areas LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable Fire 955 S Road 47,546 S S Employee benefits accrued and withheld 2,216 Fire Womens Monashka Bay Service Womens Bay View Service Protection Bay Fire Road Service District Bay Service Road Service Area Area No. I Department Area No. 1 Area Area No. 2 ASSETS Unreserved: Equity in central treasury S 4,248 S 10,700 S 38,602 S 11,420 S 49,450 S 6,019 $ 3,165 Temporary investments 500,000 68,995 314.339 - - - - - Receivables: State of Alaska Land sales contracts, due within one year - Accrued interest 1,060 - - - - Other 5,653 975 393 10,184 1,602 7 Allowance for doubtful receivables - - - - Due from other funds 150,000 80,000 30,000 305.000 125,000 Prepaid expenditures 3,126 4,480 - Land sale contracts, due after one year - TOTAL S 664,087 S 96,155 S 68.995 S 326,604 S 176.052 S 6,026 S 3,165 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable S 4,480 S 955 S S 12,265 S 47,546 S S Employee benefits accrued and withheld 2,216 - - Customer deposits - 275 Deferred revenues - Due to other funds - Total liabilities 6,696 1,230 12,265 47,546 FUND BALANCES (DEFICITS): Unreserved: Undesignated 657,391 94,925 68.995 314,339 128.506 6,026 3,165 Total fund balances 657,391 94,925 68,995 314.339 128,506 6,026 3,165 TOTAL S 664.087 S 96.155 S 68.995 S 326,604 S 176.052 S 6,026 S 3,165 42 EXHIBIT B-1 km I Em I ILi it Federal and State Grant Programs Woodland Mental Child Care Buildings Acres Street Kodiak Totals Health Coastal Assistance and Light Service Arts Tourism Center Management Program Land Sales Grounds Area Council Facilities Development 1997 1996 S 39,058 S 4,854 S 2,201 S 3,707 S 4,634 S 40,274 $ 2,655 S 1,931 S 3,451 $ 226,369 S 125,488 _ - - - - - 4,350,505 - 4,850,505 2,549,495 46,805 73,934 72,091 - 192,830 155,156 - - 188,233 - 188,233 200,157 - - - 56,062 - 57,122 13,452 67.199 1,864 45 2,345 8,249 96,652 111,665 393,602 (25,000) - - - (25,000) (25,000) 5,000 00 20,000 715,000 747,700 120,000 - - 7,606 - - - 263,713 - 263,713 388,540 $ 158.062 S 78,788 S 74.292 S 430.653 S 4,634 S 40,319 S 5,000 S 4,428.498 S 11.700 S 6,573,030 S 4,266.653 $ 24,028 S 18,929 S 23,678 S 315 S 12,002 S 414 S S S S 144,612 S 111,322 17,985 - 1,507 22 - 21,730 21,446 - 400 675 1,864 - - 393,602 - - 393,602 588,697 00 60,000 45.000 130.000 120,000 5,000 - 960,000 747.700 642,013 78,929 68,678 525,424 132,024 414 5,000 - 400 1,520,619 1,471,029 (483.951) (141) 5.614 (94,771) (127,390) 39,905 - 4.428.498 11,300 5.052.411 2,795.624 (483.951) (141) 5,614 (94,771) (127,390) 39,905 4.428.498 11.300 5,052,411 2,795,624 S 158.062 S 78.788 $ 74.292 S 430.653 S 4,634 S 40,319 S 5,000 S 4.428,498 S 11.700 S 6,573,030 S 4,266,653 43 1 -1 KODIAK ISLAND BOROUGH fl SPECIAL REVENUE FUNDS j j COMBINING STATEMENT OF REVENUES, EXPENDITURES, T TRANSFERS AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) Fire and Road Service Areas Fire R Road Fire Womens M Monashka Bay S Service W Womens B Bay View Protection Bay Fire R Road Service D District B Bay Service R Road Service Area No. I Department A Area N No. 1 A Area A Area Property taxes S 210,892 S 43,657 S S 19,612 S 2 200,079 S 7 70,079 $ $ 4,473 State sources 17,592 2,702 1 1,762 8 8,018 9 9,459 7 784 Federal sources 2,243 - - - 2 2,990 - - - - Licenses, permits, fees and other local revenues Investments and property Total revenues EXPENDITURES: Community development department General and administration Health and sanitation department Capital outlay: Services district maintenance Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers in from other funds Operating transfers out to other funds Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses FUND BALANCES (DEFICITS), at beginning of year FUND BALANCES (DEFICITS), at end of year 6,000 9,050 - - 20,000 - 34.236 5,104 3,724 25,614 11,375 330 270.963 60.513 25,098 236,701 110,913 5,587 180,165 35,943 - - - - 10,980 122.178 152,002 2,476 ' 180.165 35,943 10,980 122,178 152,002 2,476 90.798 24,570 14,118 114.523 (41,089) 3,111 4 - - - (1, 20) (220,160) (1,420) - - (220.160) 89.378 24,570 14,118 (105,637) (41,089) 3,111 f 568.013 70,355 54,877 419.976 169.595 2,915 S 657.391 S 94,925 S 68,995 S 314.339 $ 128,506 S 6,026 , 44 1 44 1 EXHIBIT B-2 State Grant Programs Woodland Service Mental Child Care Buildings Acres Street Area Health Coastal Assistance and Light Service No. 2 Center Management Program Land Sales Grounds Area $ - $ - $ - $ - $ - $ - $ 8,834 535,279 80,159 314.059 - - 137 - - 265,496 - - - 850,718 - 101,016 - - 169 443 - - - 329.145 2,184 169 1.386.440 80,159 314.059 366.512 329,145 11.155 80,278 - - - - - - 246,701 612,952 5,082 1,995,620 314,339 - - _ 1,995.620 80.278 314.339 246,701 612,952 5,082 169 (609.180) (l 19) (280) 119.811 (283.807) 6.073 517.333 - 206,110 - - - - (21,041) (544) - 517.333 - (21.041) 205,566 - 169 (91,847) (119) (280) 98,770 (78,241) 6,073 2,996 (392.104) (22) 5.894 (193,541) (49,149) 33,832 $ 3.165 $ (483.951) $ (141) $ 5.614 $ (94,771) $ (127,390) $ 39.905 (continued) 45 1 KODIAK ISLAND BOROUGH EXHIBIT B-2, continued I SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) t 46 1 Kodiak Totals , Arts Tourism REVENUES: Council Facilities Development 1997 1996 Property taxes $ $ - $ $ 557,626 $ 547,378 State sources - 969,951 948,401 Federal sources Land sale proceeds - - - 2,194,266 5,233 2,459,762 5,841 8,389,582 Licenses, permits, fees - and other local revenues 69,210 - 11,300 1,067,294 527,775 Investments and property Total revenues - 69.210 213.749 - 626,073 508.596 10.927,573 2,408,015 11,300 5,685,939 EXPENDITURES: Community development department - - - 80,278 30,350 General and administration 69,214 - - 1,150,057 994,673 L Health and sanitation department - - - 2,309,959 1,946,103 Capital outlay: - Services district maintenance - - - 287,636 189,023 Total expenditures 69,214 - - 3.827,930 3,160,149 Excess (deficiency) of revenues over(under)expenditures (4) 2.408.015 11,300 1.858,009 7,767,424 OTHER FINANCING SOURCES (USES). Operating transfers in from other funds - - - 723,443 426.152 Operating transfers out to other funds - (81.500) - (324,665) (6.383,226) t Net other financing sources (uses) - (81.500) - 398,778 (5,957,074) } Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (4) 2.326,515 11,300 2,256,787 1,810,350 FUND BALANCES (DEFICITS), at beginning of year 4 2.101,983 - 2,795,624 985,274 F FUND BALANCES (DEFICITS), at end of year $ - $ 4.428.498 $ 11.300 $ 5,052,411 $ 2.795,624 1 ' t 46 1 u is KODIAK ISLAND BOROUGH EXHIBIT B-3 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS -FIRE PROTECTION AREA NO. 1 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) EXPENDITURES: General and administration: Fire chief Volunteers Fringe benefits Contracted services Support goods and services Capital outlay Depreciation Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING USES: Operating transfers out to other funds: Debt Service - Other Excess (deficiency) of revenues over (under) expenditures and operating transfers out FUND BALANCE, at beginning of year FUND BALANCE, at end of year 78,940 77,838 1997 79,145 15,000 9,480 5,520 5,745 Variance - 23,264 1,626 25,674 4,000 Favorable 1996 - Budget Actual (Unfavorable) Actual REVENUES: 1,500 1,500 - 15,000 Property taxes $ 208,000 $ 210,892 $ 2,892 $ 207,613 State sources - Shared revenue 15,000 17,592 2,592 19,267 Federal sources - Payment in lieu of taxes 2,500 2,243 (257) 2,503 Licenses, permits, fees and other local revenues 6,000 6,000 - 6,000 Investments and property 10,000 34,236 24,236 39,357 Total revenues 241,500 270,963 29,463 274,740 EXPENDITURES: General and administration: Fire chief Volunteers Fringe benefits Contracted services Support goods and services Capital outlay Depreciation Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING USES: Operating transfers out to other funds: Debt Service - Other Excess (deficiency) of revenues over (under) expenditures and operating transfers out FUND BALANCE, at beginning of year FUND BALANCE, at end of year 78,940 77,838 1,102 79,145 15,000 9,480 5,520 5,745 24,890 23,264 1,626 25,674 4,000 309 3,691 - 200,670 67,774 132,896 37,125 3,000 1,500 1,500 - 15,000 - 15,000 - 341,500 180,165 161,335 147,689 (100,000) 90,798 190,798 127,051 $ (100,000) (1,420) (1,420) (658) 89,378 $ 189,378 126,393 cce ^I� $ 657,391 AA1 Z^ ^ $ 568,013 11 47 1 KODIAK ISLAND BOROUGH EXHIBIT B -4 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - WOMENS BAY FIRE DEPARTMENT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) REVENUES: Property taxes State sources - Shared revenue Licenses, permits, fees and other local revenues Investments and property Total revenues EXPENDITURES: General and administration: Personnel services Contracted services Fringe benefits Support goods and services Capital outlay Total expenditures Excess of revenues over expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year 48 C t 1997 Variance - Favorable 1996 Budget Actual (Unfavorable) Actual $ 41,840 $ 43,657 $ 1,817 $ 41,389 590 2,702 2,112 572 9,100 9,050 (50) 9,000 3,000 5,104 2,104 3,888 54,530 60,513 5,983 54,849 1,700 - 1,700 1,478 300 - 300 - 3,000 - 3,000 1,266 44,030 34,939 9,091 38,295 5,500 1,004 4,496 2,150 54,530 35,943 18,587 43,189 $ - 24,570 $ 24,570 11,660 70,355 58,695 $ 94,925 $ 70,355 48 C t I I KODIAK ISLAND BOROUGH EXHIBIT B-5 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - MONASHKA BAY ROAD SERVICE AREA STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 REVENUES: Property taxes State sources - Shared revenue Investments and property Total revenues EXPENDITURES: Capital outlay: Service district maintenance: Personnel services Snow removal/sanding Road grading/ditching Repairs and maintenance Support goods and services Total expenditures Excess of revenues over expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year 500 210 Variance - 7,044 8,500 3,438 Favorable 1996 Budget Actual (Unfavorable) Actual - $ - 14,118 $ 19,000 $ 19,612 $ 612 $ 19,011 1,680 1,762 82 2,090 2,120 3,724 1,604 2,770 22,800 25,098 2,298 23,871 500 210 12,000 7,044 8,500 3,438 1,500 - 300 288 22,800 10,980 $ - 14,118 54,877 $ 68,995 290 96 4,956 4,864 5,062 3,116 1,500 - 12 - 11,820 8,076 $ 14,118 15,795 39,082 $ 54,877 t 49 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - SERVICE DISTRICT NO. I STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comp arative totals for 1996) EXHIBIT B-6 1997 REVENUES: Property taxes State sources - Shared Revenue Federal sources - Payment in lieu of taxes Investments and property Total revenues EXPENDITURES: Capital outlay: Service district maintenance: Personnel services Repairs and maintenance Snow removal/sanding Road grading/ditching Support goods and services Total expenditures Excess of revenues over expenditures OTHER FINANCING USES: Operating transfers out to other funds: Capital Projects - Borough projects Total Operating Transfers Out Excess (deficiency) of revenues over (under) expenditures and operating transfers out FUND BALANCE, at beginning of year FUND BALANCE, at end of year 4,670 8,310 Variance - 4,432 56,030 46,019 Favorable 1996 Budget Actual (Unfavorable) Actual $ 195,000 $ 200,079 $ 5,079 $ 195,716 10,000 8,018 (1,982) 10,523 3,300 2,990 (310) 3,338 - 25,614 25,614 20,309 208,300 236,701 28,401 229,886 4,670 8,310 (3,640) 4,432 56,030 46,019 10,011 2,572 94,000 54,392 39,608 29,008 50,000 11,638 38,363 10,738 3,600 1,819 1,781 104 208,300 122,178 86,122 46,854 - 114,523 114,523 183,032 (220,160) (220,160) - - (220,160) (220,160) - - $ (220,160) (105,637) $ 114,523 183,032 419,976 236,944 $ 314,339 $ 419,976 50 I I KODIAK ISLAND BOROUGH EXHIBIT B-7 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - WOMENS BAY SERVICE AREA STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED NNE 30, 1997 (with comparative totals for 1996) 1997 REVENUES: Property taxes State sources - Shared revenue Licenses, permits, fees and other local revenues Investments and property Total revenues EXPENDITURES: Capital outlay: Service district maintenance: Personnel services Snow removal/sanding Road grading/ditching Repairs and maintenance Service district maintenance Total expenditures Deficiency of revenues over expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year 3,630 30,000 24,290 38,260 14,300 1,698 1,932 Variance - 30,180 (180) 29,841 Favorable 1996 Budget Actual (Unfavorable) Actual 915 13,385 $ 66,380 $ 70,079 $ 3,699 $ 66,278 12,600 9,459 (3,141) 10,561 20,000 20,000 - 20,000 11,500 11,375 (125) 11,080 110,480 110,913 433 107,919 3,630 30,000 24,290 38,260 14,300 1,698 1,932 1,951 30,180 (180) 29,841 41,802 (17,512) 54,890 77,407 (39,147) 41,703 915 13,385 431 152,002 (41,522) 128,816 (41,089) $ (41,089) (20,897) $ 128,506 190,492 $ 169,595 11 51 KODIAK ISLAND BOROUGH EXHIBIT B -8 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS -BAY VIEW ROAD SERVICE AREA STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 REVENUES: Property taxes State sources - Shared revenue Investments and property Total revenues EXPENDITURES: Capital outlay: Service district maintenance: Personnel services Snow removal/sanding Road grading/ditching Repairs and maintenance Support goods and services Total expenditures Excess of revenues over expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year Variance - Favorable 1996 Budget Actual (Unfavorable) Actual $ 4,110 $ 4,473 $ 363 $ 4,484 1,000 784 (216) 855 5,310 5,587 277 5,587 - 98 (98) 19 2,000 1,724 276 1,414 2,000 - 2,000 3,734 1,000 598 403 110 310 56 254 - 5,310 2,476 2,834 5,277 $ - 3,111 $ 3,111 310 $ 6,026 $ 2,915 52 KODIAK ISLAND BOROUGH EXHIBIT 13-9 SPECIAL REVENUE FUNDS SERVICE AREA NO.2 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 REVENUES: Investments and property Total revenues EXPENDITURES: Capital outlay: Service district maintenance: Total expenditures Excess of revenues over expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year Variance - Favorable 1996 Budget Actual (Unfavorable) Actual $ - $ 169 $ 169 $ 26 169 169 26 $ - 169 $ 169 26 2,996 2,970 $ 3,165 $ 2,996 53 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS MENTAL HEALTH CENTER STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 199 EXHIBIT B -10 I 1997 Variance - Favorable 1996 Budget Actual (Unfavorable) Actual REVENUES: State sources: Health, Social and Community Services Program Licenses, permits, fees and other local revenues: Net individual and organization user fees Investments and property: Rental fees Interest Total revenues EXPENDITURES: Health and sanitation department: Mental health program: Personnel services Travel Facility Supplies Equipment Capital outlay Other Total expenditures Deficiency of revenues under expenditures OTHER FINANCING SOURCES (USES): Operating transfers in (out) to other funds: General Fund Debt Service - Other Net other financing sources Deficiency of revenues and operating transfer in under expenditures and operating transfers out FUND BALANCE (DEFICIT), at beginning of year FUND DEFICIT, at end of year $ 545,570 $ 535,279 $ (10,291) $ 554,904 685,600 850,718 165,118 444,590 - 159 159 306 200 284 84 1,755 1,231,370 1,386,440 155,070 1,001,555 1,493,695 1,472,201 21,494 1,411,625 30,500 27,829 2,671 32,282 27,100 19,742 7,358 24,149 23,100 17,830 5,270 19,296 16,700 9,685 7,015 13,432 600 508 92 20,535 156,095 447,825 (291,730) 105,674 1,747,790 1,995,620 (247,830) 1,626,993 (516,420) (609,180) (92,760) (625,438) 516,420 516,420 - 235,000 - 913 913 (8,550) 516,420 517,333 913 226,450 $ - (91,847) $ (91,847) (398,988) (392,104) 6,884 $ (483,951) $ (392,104) 54 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COASTAL MANAGEMENT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comp arative totals for 1996) EIRIIBIT B-11 1997 REVENUES: State sources - Grants Total revenues EXPENDITURES: Community development department CMG Special Planning and zoning Total expenditures Deficiency of revenues under expenditures FUND DEFICIT, at beginning of year FUND DEFICIT, at end of year Variance - Favorable 1996 Budget Actual (Unfavorable) Actual $ 80,300 $ 80,159 $ (141) $ 30,350 80,300 80,159 (141) 30,350 49,300 49,159 141 - 31,000 31,119 (119) 30,350 80,300 80,278 22 30,350 $ - (119) $ 119 - 55 (22) (22) $ (141) $ (22) KODIAK ISLAND BOROUGH EXHIBIT 13-12 SPECIAL REVENUE FUNDS CHILD CARE ASSISTANCE PROGRAM STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 REVENUES: State sources - Grants Total revenues EXPENDITURES: Health and sanitation department: Day care payments Total expenditures Deficiency of revenues under expenditures Variance - Favorable 1996 Budget Actual (Unfavorable) Actual $ 324,100 $ 314,059 $ (10,041) $ 319,110 324,100 314,059 (10,041) 319,110 324,100 314,339 9,761 319,110 324,100 314,339 9,761 319,110 $ - -(280) $ (280) - FUND BALANCE, at beginning of year 5,894 5,894 FUND BALANCE, at end of year $ 5,614 $ 5,894 56 lu C I KODIAK ISLAND BOROUGH EXHIBIT B-13 SPECIAL REVENUE FUNDS LAND SALES STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996)_ 1997 REVENUES: Land sale proceeds Licenses, permits, fees and other local revenues: Gravel sales Other Investments and property Total revenues EXPENDITURES: General and administration: Personnel services Contracted services Support goods and services Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING USES: Operating transfers out to other funds: Buildings and Grounds Debt Service Other Capital Projects - Various Other Projects Total other financing uses Excess (deficiency) of revenues under expenditures and operating transfers out FUND BALANCE (DEFICIT), at beginning of year FUND DEFICIT, at end of year 136,560 137,650 Variance - 137,144 40,000 7,383 Favorable 1996 Budget Actual (Unfavorable) Actual $ 271,310 $ 265,496 $ (5,814) $ 389,582 40,000 99,936 59,936 15,020 5,520 1,080 (4,440) 1,400 5,000 - (5,000) 4,905 321,830 366,512 44,682 410,907 136,560 137,650 (1,090) 137,144 40,000 7,383 32,617 110,654 104,600 32,507 72,093 29,761 20,670 69,161 (48,491) 1,271 301,830 246,701 55,129 278,830 20,000 119,811 99,811 132,077 (20,000) (20,000) - (19,000) - (1,041) (1,041) (2,018) (353,000) (20,000) (21,041) (1,041) (374,018) $ - 98,770 $ 98,770 (193,541) $ (94,771) (241,941) AO AAA $ (193,541) '' 57 KODIAK ISLAND BOROUGH EXHIBIT B -14 SPECIAL REVENUE FUNDS BUILDINGS AND GROUNDS STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 Variance - Favorable 1996 Budget Actual (Unfavorable) Actual REVENUES: Investments and property: Rental Total revenues EXPENDITURES: General and administration: School buildings Borough building Apartments Parks operation and maintenance Total expenditures Deficiency of revenues under expenditures OTHER FINANCING SOURCES (USES): Operating transfers in (out) from other funds: General Fund Land Sales Fund Debt Service Fund Other Total other financing sources Deficiency of revenues and operating transfers in under expenditures $ 329,590 $ 329,145 $ (445) $ 320,128 329,590 329,145 (445) 320,128 122,000 115,935 6,065 95,130 325,622 336,379 (10,757) 302,472 68,080 123,208 (55,128) 68,528 19,998 37,430 (17,432) 22,033 535,700 612,952 (77,252) 488,163 (206,110) (283,807) (77,697) (168,035) 186,110 186,110 - 146,340 20,000 20,000 - 19,000 - (544) (544) 326 206,110 205,566 (544) 165,666 (78,241) (78,241) (2,369) FUND DEFICIT, at beginning of year FUND DEFICIT, at end of year (49,149) (46,780) $ (127,390) $ (49,149) 58 KODIAK ISLAND BOROUGH EXIIIBIT B-15 SPECIAL REVENUE FUNDS WOODLAND ACRES STREET LIGHT SERVICE AREA STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 REVENUES: Property taxes State sources - Shared revenue Investments and property Total revenues EXPENDITURES: General and administration: Electricity Capital outlay Total expenditures Excess of revenues over expenditures 7,950 5,082 2,868 5,041 3,000 - 3,000 - 10,950 5,082 5,868 5,041 $ - 6,073 $ 6,073 9,856 FUND BALANCE, at beginning of year 33,832 FUND BALANCE, at end of year $ 39,905 59 $ 33,832 Variance - Favorable 1996 Budget Actual (Unfavorable) Actual $ 10,730 $ 8,834 $ (1,896) 12,887 220 137 (83) 169 - 2,184 2,184 1,841 10,950 11,155 205 14,897 7,950 5,082 2,868 5,041 3,000 - 3,000 - 10,950 5,082 5,868 5,041 $ - 6,073 $ 6,073 9,856 FUND BALANCE, at beginning of year 33,832 FUND BALANCE, at end of year $ 39,905 59 $ 33,832 KODIAK ISLAND BOROUGH EXHIBIT B-16 SPECIAL REVENUE FUNDS KODIAK ARTS COUNCIL STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 Variance - Favorable 1996 Budget Actual (Unfavorable) Actual REVENUES: Licenses, permits, fees and other local services: Reimbursement from Kodiak Arts Council Total revenues EXPENDITURES: General administration: Personnel services Fringe benefits Total expenditures Excess (deficiency) of revenues over (under) expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year $ 73,300 $ 69,210 $ (4,090) $ 31,765 73,300 69,210 (4,090) 31,765 56,000 52,395 3,605 24,182 17,300 16,819 481 7,579 73,300 69,214 4,086 31,761 $ - (4) $ (4) 4 60 $ 4 KODIAK ISLAND BOROUGH EXHIBIT B -17 SPECIAL REVENUE FUNDS FACILITIES STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 Variance - Favorable 1996 Budget Actual (Unfavorable) Actual REVENUES: Land sale proceeds: Proceeds from the sale of Shuyak Island Investments and property Total revenues EXPENDITURES: General and administration Total expenditures Excess of revenues over expenses OTHER FINANCING USES: Operating transfers out to other funds: Debt Service - Bonds Total other financing uses Excess of revenues over expenditures and other financing uses FUND BALANCE, at beginning of year FUND BALANCE, at end of year $ 2,194,270 $ 2,194,266 $ (4) $ 8,000,000 510,440 213,749 (296,691) 101,983 2,704,710 2,408,015 (296,695) 8,101,983 8,101,983 (296,695) 2,408,015 2,704,710 (81,500) (81,500) (6,000,000) (81,500) (81,500) (6,000,000) $ 2,704,710 2,326,515 $ (378,195) 2,101,983 $ 4,428,498 61 2,101,983 $ 2,101,983 KODIAK ISLAND BOROUGH EXHIBIT B-18 SPECIAL REVENUE FUNDS TOURISM DEVELOPMENT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 Variance - Favorable 1996 Budget Actual (Unfavorable) Actual REVENUES: Licenses, permits, fees and other local revenues Total revenues EXPENDITURES: Contributions Total expenditures Excess of revenues over expenditures $ 5,000 $ 11,300 $ 6,300 - 5,000 11,300 6,300 - 5,000 - 5,000 - 5,000 - 5,000 - $ - 11,300 $ 11,300 FUND BALANCE, at beginning of year - FUND BALANCE, at end of year $ 11,300 $ - 62 1 1 F � DEBT SERVICE FUNDS 1 0 G 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 EXHIBIT C -1 DEBT SERVICE FUNDS COMBINING BALANCE SHEET AS OF JUNE 30, 1997 (with comparative totals for 1996) ASSETS Equity in central treasury Temporary investments Due from State of Alaska Due from other funds Accrued interest receivable TOTAL LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable Due to other funds Total liabilities FUND BALANCES: Unreserved: Designated for subsequent year expenditures TOTAL Totals Bonds Other 1997 1996 $ 90,334 $ 60,319 $ 150,653 $ 63,357 500,000 - 500,000 1,521,417 15,869 - 15,869 228,063 - 200,000 200,000 205,000 1,060 - 1,060 7,705 $ 607,263 $ 260,319 $ 867,582 $ 2,025,542 $ 57,694 $ - $ 57,694 $ 57,694 - 57,694 2,576 7,576 549,569 260,319 809,888 2,017,966 $ 607,263 $ 260,319 $ 867,582 $ 2,025,542 63 KODIAK ISLAND BOROUG EXHIBIT C -2 DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES TRANSFERS AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) Totals Bonds Other 1997 1996 REVENUES: Investments and property: Interest income EXPENDITURES: Debt service: Principal Interest Fiscal agent fees Other Total expenditures Deficiency of revenues under expenditures OTHER FINANCING SOURCES (USES): Operating transfer in from component unit Operating transfers in from other funds Operating transfers out to other funds Net other financing sources (uses) Deficiency of revenues and operating transfers in over (under) expenditures and operating transfers out FUND BALANCES, beginning of year FUND BALANCES, end of year $ 77,132 $ - $ 77,132 $ 127,994 1,565,833 - 1,565,833 2,480,833 1,237,938 - 1,237,938 1,370,170 2,058 - 2,058 2,151 - - - 14,360 2,805,829 - 2,805,829 3,867,514 (2,728,697) - (2,728,697) (3,739,520) 1,658,131 - 1,658,131 2,489,819 1,016,780 3,005 1,019,785 (1,146,712) (10,585) (1,157,297) 952,133 1,528,199 (7,580) 1,520,619 3,441,952 (1,200,498) (7,580) (1,208,078) (297,568) 1,750,067 267,899 2,017,966 2,315,860 $ 549,569 $ 260,319 $ 809,888 $ 2,018,292 64 KODIAK ISLAND BOROUGH EXHIBIT C -3 DEBT SERVICE FUNDS BONDS STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 Variance- Favorable 1996 Budget Actual (Unfavorable) Actual II 11 65 REVENUES: Investments and property: ' Interest income $ 105,000 $ 77,132 $ (27,868) $ 127,994 Total revenues $ 105,000 $ 77,132 $ (27,868) $ 127,994 EXPENDITURES: Debt service: Principal 1,565,840 1,565,833 7 2,480,833 ' Interest 1,237,940 1,237,938 3 1,370,170 Fiscal agent fees 3,780 2,058 1,722 2,151 Other 54,700 - 54,700 14,360 ' Total expenditures 2,862,260 2,805,829 56,431 3,867,514 Deficiency of revenues ' under expenditures (2,757,260) (2,728,697) 28,563 (3,739,520) OTHER FINANCING SOURCES (USES): Operating transfers out to other funds (1,146,712) (1,146,712) - - Operating transfer in from component unit 1,645,130 1,658,131 13,001 2,489,819 Operating transfers in from other funds 1,016,780 1,016,780 - 924,000 ' Net other financing sources (uses) 1,515,198 1,528,199 13,001 3,413,819 ' Deficiency of revenues and operating transfers in under expenditures and other operating transfers out $ (1,242,062) (1,200,498) $ 41,564 (325,701) ' FUND BALANCE, at beginning of year 1,750,067 2,075,768 FUND BALANCE, at end of year $ 549,569 $ 1,750,067 II 11 65 1 KODIAK ISLAND BOROUGH EXHIBIT C4 I DEBT SERVICE FUNDS , OTHER STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS Variance - AND CHANGES IN FUND BALANCE ' BUDGET AND ACTUAL Favorable YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) ' Budget Actual OTHER FINANCING SOURCES (USES): Operating transfers in from other funds Operating transfer out to other funds Net other financing sources (uses) 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 (7,580) $ (7,580) 'Ices onn $ 260,319 27,807 1 240,092 , t $ 267,899 ' 1997 Variance - Favorable 1996 ' Budget Actual (Unfavorable) Actual - 3,005 3,005 28,133 - (10,585) (10,585) (326) ' - (7,580) (7,580) 27,807 66 1 t t Pi CAPITAL PROTECTS FUNDS 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 !i u � J KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET AS OF JUNE 30, 1997 (with comparative totals for 1996) Various School Hospital Borough Bond Bond Projects Improvements Improvements ASSETS Equity in central treasury $ 80,099 $ 2,822 $ 19,721 Temporary investments - - 1,323,468 Receivables: State of Alaska - - - Federal Government 387,295 - - Accrued interest - - 8,893 Due from other funds - - 1,500,000 F Total assets $ 467,394 $ 2,822 $ 2,852,082 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ 201,862 $ 17,089 $ 679,950 Retainages payable 191,839 15,192 190,086 Deferred revenue - - - Revenue anticipation note payable - - - Due to other funds - 150,000 400,000 Total liabilities 393,701 182,281 1,270,036 ' z FUND EQUITY: Fund Balances (Deficits): Reserved for encumbrances 57,449 - 1,548,268 Unreserved: Designated for subsequent years expenditures 16,244 - - Undesignated - (179,459) 33,778 Total fund equity 73,693 (179,459) 1,582,046 Total liabilities and fund equi o q ty $ 467 394 $ 2 822 $ 2 852 082 , s 68 i EXHIBIT D -1 Kodiak State Fisheries Capital Totals Research Center Grants 1997 $ 3,520 $ 2,449 $ 108,611 $ 203,445 3,550,656 - 4,874,124 12,254,375 - 216,172 216,172 176,692 274,083 - 661,378 381,766 47,547 - 56,440 81 ,761 240,000 - 1,740,000 242,500 $ 4,115,806 $ 218,621 $ 7,656,725 $ 13,340,539 $ 532,495 90,255 20,000 642,750 $ 22,153 $ 1,453,549 $ 1,130,251 - 487,372 922,829 24,514 24,514 - - - 3,000,000 200,000 770,000 1,112,700 246,667 2,735,435 6,165,780 15,217,663 96,766 16,920,146 6,247,121 16,244 5,202,226 (11,744,607) (124,812) (12,015,100) (4,274,588) 3,473,056 (28,046) 4,921,290 7,174,759 $ 4,115,806 $ 218,621 $ 7,656,725 $ 13,340,539 1996 69 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) Various School Borough Bond Projects Improvements REVENUES: State sources $ - $ - Federal sources 22,057 - Licenses, permits, fees and other local revenues 1,548 - Investments and property 27,141 - Total revenues 50,746 - EXPENDITURES: 520,804 - Capital improvements: 60,000 - Schools 211,685 239,786 General 1,213,115 - Total expenditures 1,424,800 239,786 Deficiency of revenues (255,728) - under expenditures (1,374,054) (239,786) OTHER FINANCING SOURCES (USES): Operating transfers in from other funds 520,804 - Operating transfers in from component units 60,000 - Bond proceeds - - Operating transfers out to other funds (836,532) - Operating transfers out to component units - - Net other financing sources (uses) (255,728) - Deficiency of revenues and operating transfers in under expenditures and operating transfers out (1,629,782) (239,786) FUND BALANCES (DEFICITS), at beginning of year 1,703,475 60,327 Residual equity transfer in FUND BALANCES (DEFICITS), at end of year $ 73,693 $ (179,459) 70 EXHIBIT D -2 Hospital Kodiak State School - - _ _ _ - Bond Fisheries Capital Major Totals (167,000) Improvements Research Center Grants Maintenance 1997 1996 $ _ $ - $ 1,019,462 $ - $ 1,019,462 $ 493,442 - 465,000 - - 487,057 44,195 - _ _ - 1,548 5,143 192,764 186,724 - - 406,629 708,631 192,764 651,724 1,019,462 - 1,914,696 1,251,411 - _ _ - 451,471 5,314,508 4,250,584 2,773,980 1,061,533 - 9,299,212 12,338,228 4,250,584 2,773,980 1,061,533 - 9,750,683 17,652,736 (4,057,820) (2,122,256) (42,071) - (7,835,987) (16,401,325) 3,477,245 - 6,000 - 4,004,049 - 1,000,000 - - - 1,060,000 - - _ _ _ - 9,785,661 _ - - (50,645) (887,177) (3,251,461) - _ _ _ - (167,000) 4,477,245 - 6,000 (50,645) 4,176,872 6,367,200 419,425 (2,122,256) (36,071) (243,025) 5,595,312 8,025 1,405,646 - - $ 1,582,046 $ 3,473,056 $ (28,046) (50,645) (3,659,115) (10,034,125) 50,645 7,174,759 17,208,884 - 1,405,646 - $ - $ 4,921,290 $ 7,174,759 71 KODIAK ISLAND BOROUGH EXHIBIT D•3 CAPITAL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS FOR THE YEAR ENDED JUNE 30, 1997 APPROPRIATIONS EXPENDITURES ENCUMBRANCES PROJECT TOTAL TOTAL UNEXPENDED CURREN - r UNENCUMBERED NO. PROJECT STATUS PRIOR 1997 APPROPRIATIONS PRIOR 1997 EXPENDITURES BALANCE ENCUMBRANCES BALANCE NMI M IM SW Capital Projects - Education: 2 410 -404 Work of Art - Auditorium Complete S 33.090 S - S 33,090 S 28,000 S 5,090 S 33,090 $ - s - S - 6 410415 Asbestos Removal Program Open 71,000 - 71,000 69,871 - 69,871 1,129 - 1,129 33 410 -446 High School Roof Maintenance Open 65,000 7,576 72,576 55,703 16,872 72,575 1 - 1 78 410 -462 High School Library Roof Open 35,000 - 35,000 5,031 9,146 14,177 20,823 20,823 80 410 -464 High School Parking Lot Repair Complete 45,000 - 45,000 18,237 10,717 28,954 16,046 - 16,046 39 420 -501 Peterson Elementary Complete 751,340 - 751,340 697,407 231,27.1 928,678 (177,338) - (177,338) 93 420 -504 Northstar Elementary Complete 8,380,000 - 8,380,000 8,381,702 (1,632) 8,380,070 (70) - (70) 94 420-505 Ouzinkie School Remodel Complete 1,563,000 6,326 1,569,326 1,559,140 10,179 1,569,319 7 - 7 100 410.477 Main Elementary Steps Open 18,000 ' 1 3,800 21,800 3,291 18,509 21,800 0 - - 139 430 -639 Peterson Elem. Addition (Grant) Open 141,603 141,603 - 3,807 3,807 137,796 - 137,796 116 410 -644 Old Harbor Exterior Paint Open 45,000 - 45,000 44,552 392 44,944 56 - 56 125 410 -650 High School Locker Room Open 51,000 51,000 255 46,585 46,840 4,160 - 4,160 126 410 -651 Akhiok School Carpel Repair Complete 5,000 . - 8,557 13,557 - 13,557 13,557 - - - 127 410 -652 Akhiok School Painting Complete - 20,164 20,164 119 20,045 20,164 _ - - - 128 410 -653 Peterson Elem. Addition (Match) Open '10,000 70,000 - 1,723 1,723 68,277 - 68,277 129 410 -654 High School Rooms Open - 6,000 6,000 - 5,954 5,954 46 - 46 130 410 -655 East Elementary Doorways Open - 4,200 4,200 - - - 4,200 - 4,200 135 410 -660 North Star Enhancements Open - 79,000 79,000 - 29,886 29,886 49,114 - 49,114 144 410 -661 Ouzinkie School Artwork Open - 6,600 6,600 - - - 6,600 - 6,600 N 148 410 -664 High School Sidewalks Open - 28,000 28,000 - 1,883 1,883 26,117 - 26,117 149 410 -665 Middle School Bus Ramp Open 4,700 4,700 - - - 4,700 - 4,700 151 410 -667 Chiniak School Teacherage Open 90,000 90,000 - 93,741 93,741 (3,741) - (3,741) Total Education 11,062,430 476,526 11,538,956 10,863,308 517,725 11,381,033 157,923 - 157,923 Capital Projects - Health: 95 425 -540 Hospital Remodel Open I S 980,0(x) 1,727,244 17,707,244 13,231,340 4,250,584 17,481 924 225,320 - 225,320 540 -540 Hospital Remodel Open - 3,926,046 3,926,046 - 2,377,778 2,377,778 1,548,268 1,548,268 - 138 430 -638 Hospital Remodel (Grant) Open - 500,000 500,000 - 500,000 500,000 - - - 111 410 -639 Hospital Construction Complete 830,532 (830,532) - - - - - - - 121 410 -647 New Ambulance Purchase Open 6,000 6,000 12,000 - - - 12,000 - 12,000 123 430.637 DOE Energy Grant Complete 36,079 36,079 - 36,079 36,079 - - - Total Health 16,852,611 5,328,758 22,181,369 13,231,340 7,164,441 20,395,781 1,785,588 1,548,268 237,320 Capital Projects - Roads: 74 410 -455 Street Signs Open 22,000 12,000 34,000 22,074 11,360 33,434 566 1,452 (886) 82 410 -466 Anton Larsen Road Ext. Complete 25,000 (24,979) 21 - 21 21 - - - 140 430 -640 Island Lake Creek Trail Open - 145,000 145,000 - 145,000 145,000 - - - 147 430 -644 Ouzinkie Trails Open - 75,000 75,000 - 9,245 9,245 65,755 - 65,755 162 410 -678 Service Distr#I Gravel Resurface Open 220,160 220,160 245,978 245,978 (25,818) (25,818) Total Roads 47,000 427,181 474,181 22,074 411,604 433,678 40,503 1,452 39,051 continued NMI M IM SW maw i KODIAK ISLAND BOROUG EXHIBIT D -3- continued CAPITAL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS FOR THE YEAR ENDED JUNE 30, 1997 APPROPRIATIONS EXPENDITURES ENCUMBRANCES PROJECT TOTAL TOTAL UNEXPENDED CURRENT UNENCUMBERED NO. PROJECT STATUS PRIOR 1997 APPROPRIATIONS PRIOR 1997 EXPENDITURES BALANCE ENCUMBRANCES BALANCE Capital Projects - Other. 410400 Undesignated Projects Open - - - 2,941 845,650 848,591 (848,591) - (848,591) 16 410 -429 New Parks Complete 103,210 10,000 113,210 63,279 49,950 113,229 (19) - (19) 66 410 -456 Selief Lane Drainage Complete 35,000 (27,970) 7,030 - 7,030 7,030 - - - 48 430.607 Salonie Creek Rifle Range Open 544,000 - 544,000 520,567 11,346 531,913 12,087 - 12,087 54 430 -613 Selief Lane/Von Scheele Way Complete 75,000 - 75,000 75,000 - 75,000 - - - 72 430 -622 Bayside Fire Station Complete 150,000 - 150,000 102,897 56,844 159,741 (9,741) - (9,741) 79 410463 Crab Analog Report Open 10,000 - 10,000 - - - 10,000 - 10,000 85 410 -471 Village Metals Removal Open 150,000 - 150,000 111,415 - 111,415 38,585 38,585 86 410.470 KIB Oil Tank Replacement Open 100,000 - 100,000 81,065 18,588 99,653 347 - 347 87 430-632 Community Support Facility Open 375,000 6,000 381,000 372,408 6,852 379,260 1,740 - 1,740 89 430 -633 DHSS /Planning Grant Open 40,000 - 40,000 13,809 6,060 19,869 20,131 - 20,131 % 410 -473 Kodiak Clean Lakes Grant Complete 93,000 3,124 %,124 74,042 22,057 96,099 25 - 25 98 410475 Borough Bldg. Parking Lot Open 20,000 25,000 45,000 630 44,380 45,010 (10) - (10) 105 410.482 Anton Larsen Dock Open 140000 140,000 134,167 12 134,179 5,821 - 5.821 109 410.637 Fisheries Development Open 50,000 - 50,000 - - 50,000 - 50,000 110 410-638 KIB Recreation Facilities Open 400,000 - 400,000 77,850 257,109 334,959 65,041 6,324 58,717 114 410- 642 State Airport Improvements Open 11,000 - 11,000 - - - 11,000 - 11,000 115 410 -643 Chiniak Tsunami Siren Open 30,000 - 30,000 - 27,754 27,754 2,246 - 2,246 117 410 -645 Heliopad Striping Open 3,000 - 3,000 - - - 3,000 - 3,000 W 119 430 -636 Smokey's Rehabilitation Complete 223,857 223,857 70,034 153,823 223,857 124 426 -801 Kodiak Fisheries Research Center Open 6,000,000 11,465,000 17,465,000 404,688 2,773,980 3,178,668 14,286,332 15,217,663 (931,331) 131 410 -656 Little League Fencing Complete - 21,366 21,366 21,366 21,366 0 - 0 132 410 -657 City Library/Alaska Room Open - 16,000 16,000 - 11,465 11,465 4,535 - 4,535 133 410 -658 Red Cross Building Repairs Open - 12,000 12,000 - 709 709 11,291 - 11,291 145 410.662 Computer Software Acquis. Open - 300,000 300,000 - 378,558 378,558 (78,558) 31,818 (110,376) 146 410 -663 BMX Bike Track Open - 20,ODO 20,000 - 3,749 3,749 16,251 - 16,251 150 410 -666 Borough Building Repairs Open - 33,000 33,000 - 9,723 9,723 23,277 8,740 14,537 157 410.673 Sargent Creek Drainage Open - - - - 440 440 (440) - (440) 141 430 -641 Monashka Bay Park Open - 105,000 105,000 - 1,790 1,790 103,210 - 103,210 142 430 -642 Clean Water Fund/Karluk Open - 40,000 40,000 - 21,642 21,642 18,358 - 18,358 143 430 -643 EVOSTC Project Open - 250,000 250,000 - 109,042 109,042 140,958 96,766 44,192 Transfers Out - Fund 410 Open - 1,107,993 1,107,993 - - - 1,107 993 - 1,107 993 Transfers Out - Fund 420 Open - 50,000 50,000 - - 50,000 - 50,000 Total - Capital Projects Other 8,553,067 13,436,513 21,989,580 2,104,792 4,839,919 6,944,711 15,044,869 15,361,311 (316,442) Total All Capital Projects S 36,515 S 19,668, S 56,184, S 26,221,5 $ 12,933, S 39,155,2 S 17,028, S 16,911,0 S 117,85 1 KODIAK ISLAND BOROUGH EXHIBIT D -4 DEPARTMENT OF HEALTH AND SOCIAL SERVICES SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 Construction Grants -in -Aid Program - Revenue Hospital Completion Construction Costs Total expenditures This schedule is a required supplement to the general purpose financial statements for grants funded by the State of Alaska Department of Health and Social Services. This grant corresponds to Project No. 138 on the Capital Projects Schedule at Exhibit D -3. 1 1 74 Variance Approved Amounts Favorable Budget Reported (Unfavorable) $ 500,000 $ 500,000 $ - 500,000 500,000 - 500,000 500,000 - This schedule is a required supplement to the general purpose financial statements for grants funded by the State of Alaska Department of Health and Social Services. This grant corresponds to Project No. 138 on the Capital Projects Schedule at Exhibit D -3. 1 1 74 1 u 1 1 { L, 1 1 1 ENTERPRISE FUNDS 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. I � KODIAK ISLAND BOROUGH 1 ENTERPRISE FUNDS COMBINING BALANCE SHEET AS OF JUNE 30, 1997 (with comparative totals for 1996) Municipal Solid Waste Collection and Hospital Totals Disposal Facilities 911 Services 1997 1996 ASSETS CURRENT ASSETS: Equity in central treasury $ 3,118 $ 43,216 $ 82,942 $ 129,276 $ 92,164 Temporary investments - 476,928 - 476,928 - Customer receivables 252,564 - 10,650 263,214 365,384 Less allowance for doubtful accounts - - - - (26,565) Net customer receivables 252,564 - 10,650 263,214 338,819 Due from component unit - - - - 207,100 Due from other funds - 660,000 - 660,000 444,800 Inventories - 277,007 - 277,007 Total current assets 255,682 1,457,151 93,592 1,806,425 1,082,883 RESTRICTED ASSETS: Equity in central treasury - - - - 12,548 Cash with fiscal agent - 1,642,622 - 1,642,622 - Temporary investments - 150,768 - 150,768 - Total restricted assets - 1,793,390 - 1,793,390 12,548 FIXED ASSETS: Unclassified utility plant in service 2,205,383 - - 2,205,383 18,429,428 Land and improvements - 40,275 - 40,275 Buildings - 4,145,676 - 4,145,676 Equipment 829,797 5,143,558 - 5,973,355 776,875 Work in process - 2,377,778 - 2,377,778 636,250 3,035,180 11,707,287 - 14,742,467 19,842,553 Less accumulated depreciation (838,765) (5,039,009) - (5,877,774) (4,119,966) Net fixed assets 2,196,415 6,668,278 - 8,864,693 15,722,587 TOTAL $ 2,452,097 $ 9,918,819 $ 93,592 $ 12,464,508 $ 16,818,018 76 EXHIBIT E -1 77 Municipal Solid Waste Collection and Hospital Totals Disposal Facilities 911 Services 1997 1996 LIABILITIES AND FUND EQUITIES CURRENT LIABILITIES: Accounts payable $ 159,453 $ 100,619 $ - $ 260,072 $ 307,764 Accrued expenses 18,488 - - 18,488 15,291 Customer deposits - - - - 7,949 Current portion of note payable - 492,063 - 492,063 - Current portion of lease obligations - 329,819 - 329,819 - Due to City of Kodiak - - - - 28,300 Due to other funds 5,000 1,500,000 - 1,505,000 149,100 Total current liabilities 182,941 2,422,501 - 2,605,442 508,404 NONCURRENT LIABILITIES: Note payables - 2,971,335 - 2,971,335 - Capital lease obligations - 1,407,947 - 1,407,947 - ACCRUAL FOR LANDFILL CLOSURE AND POSTCLOSURE COSTS 1,984,423 - - 1,984,423 2,316,713 Total liabilities 2,167,364 6,801,783 - 8,969,147 2,825,117 FUND EQUITIES: Contributions in aid of construction: City of Kodiak - - - - 229,166 State of Alaska 2,483,473 - - 2,483,473 17,596,706 Federal Government - - - - 574,268 Other 19,990 - - 19,990 258,106 2,503,463 - - 2,503,463 18,658,246 Accumulated amortization (744,287) - - (744,287) (4,047,874) Net contributions in aid of construction 1,759,176 - - 1,759,176 14,610,372 Contributed capital - 4,298,512 - 4,298,512 - Retained earnings (deficit), unreserved (1,474,443) (1,181,476) 93,592 (2,562,327) (617,471) Total fund equities 284,733 3,117,036 93,592 3,495,361 13,992,901 TOTAL $ 2,452,097 $ 9,918,819 $ 93,592 $ 12,464,508 $ 16,818,018 77 r 1 KODIAK ISLAND BOROUGH EXHIBIT E -2 ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) Municipal Solid Waste Collection and Hospital Totals Disposal Water Sewer Facilities 911 Services 1997 1996 OPERATING REVENUES: Solid waste collection S 1,593.818 S S S $ $ 1,593,818 S 1,393,922 Solid waste disposal 741,941 741,941 727,216 Customer charges - - 93,592 93,592 - Lease proceeds - 120,000 - 120,000 - Other 16,568 - 16,568 15,465 2,352.327 120,000 93,592 2,565,919 2,136,603 OPERATING EXPENSES: Personnel services 362,483 6.529 - 369,012 367,213 Professional services - 102,097 102,097 Solid waste collection 1,110,129 - 1,110,129 1,087,242 Contracted services 247,268 247,268 385,641 Repairs and maintenance 29,229 29,229 49,705 Landfill closure and postclosure costs (246,629) - (246,629) 2,005,956 Depreciation 110,601 102,506 213,107 109,203 General and administration 176,783 - 176,783 169,043 Recycling services 11,058 11,058 16,232 t Contributions 74,907 74,907 45,935 1,875.829 211,132 - 2,086,961 4.236,170 Operating income (loss) 476,498 (91,132) 93,592 478,958 (2,099,567) OTHER INCOME (EXPENSES): Interest income 770 7,821 - 8,591 Interest expense (249,991) (249,991) Loss on disposal of hospital operations (74,971) (74,971) Loss on sale of assets (1,288) (1,288) Net income (loss) 475,980 (408.273) 93,592 161,299 (2,099,567) OTHER FINANCING SOURCES: Operating transfers out to other funds - (1,500,000) - (1.500,000) Operating transfers in from component units 726,797 726,797 Net loss from discontinued operations - (169,325) Transfer of water and sewer operations to the City of Kodiak - (715,400) (694,357) (1,409,757) - Amortization of contributions in aid of construction 76.805 76,805 388,485 Increase(decrease)in retained earnings 552,785 (715,400) (694,357) (1,181,476) 93,592 (1,944,856) (1,880,407) Retained earnings (deficit) at beginning of year (2,027,228) 715,400 694,357 (617,471) 1,262,936 Retained earnings (deficit) at end of year S (1,474.443) S - S - S (1,181,476) $ 93,592 S (2,562,327) S (617,471) r r 78 f KODIAK ISLAND BOROUGH EXHIBIT E -3 ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) Municipal Solid Waste Collection and Hospital 911 Totals Disposal Water Sewer Facilities Services 1997 1996 OPERATING LOSS S 476,498 5 S S (91,132) S 93,592 S 478,958 S (2,281,154) ADJUSTMENTS TO RECONCILE OPERATING LOSS TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES: Depreciation 110,601 102,506 213,107 415,921 Changes in assets and liabilities: Customer receivables 21,071 23,754 41,430 (10,650) 75,605 (51,830) Due to/from component unit - 207,100 - - 207,100 (207,100) Dueto/from other funds (144,100) 147,850 296,950 840,000 1,140,700 (295,700) Accounts payable (65,670) (43,356) (39,285) 100,619 (47,692) 55,618 Customer deposits (700) (7,249) - (7,949) (19,609) Accrual for landfill closure and postclosure costs (332,290) (332,290) 2,005,956 Due to the City of Kodiak (11.905) (16,395) (28,300) 11,090 Other accrued liabilities 3.197 3,197 (5,645) Total adjustments (407,891) 316,194 282,700 1,043,125 (10,650) 1,223,478 1,908,701 Net cash provided by (used for) operating activities 68,607 316,194 282,700 951,993 82.942 1,702,436 (372,453) CASH FLOWS FROM NON - CAPITAL AND RELATED FINANCING ACTIVITIES: Cash transferred from Hospital Component Unit - - 203,692 - 203,692 Operating transfers out to other funds (1,500,000) (1.500,000) Operating transfers in from Hospital 726,797 726,797 Component Unit Equity transfers out to Capital Projects Fund (1,405,646) (1,405,646) Transfer of Water and Sewer Operations ' to the City of Kodiak (369,323) (334,097) (703,420) Net cash used for capital and related financing activities (369,323) (334.097) (1,975,157) (2,678,577) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (68,595) (2,377,778) (2,446,373) (647,460) Interest paid on notes payable and capital leases (249,991) (249,991) Proceeds from issuance of notes payable 4,471,910 4,471,910 Proceeds from disposal of Component Unit Hospital operations 2.000.000 2,000.000 Principal payments on notes payable (462,648) (462,648) Principal payments on capital lease obligations - (52,616) (52,616) Proceeds from sale of equipment 2,150 2,150 370 Net cash provided by (used for) capital and related financing activities (66,445) 3,328,877 3,262.432 (647,090) CASH FLOWS FROM INVESTING ACTIVITIES: Changes in restricted assets: Additions to restricted cash - (1,793,390) (1,793,390) Interest and dividends on investments 770 7,821 8,591 - Purchases of investments (476,928) (476,928) 12,262 Net cash provided by (used for) investing activities (2,262,497) (2,261,727) 12,262 Net change in cash and cash equivalents 2,932 (53,129) (51.397) 43,216 82,942 24,564 (1,007,281) CASH AND CASH EQUIVALENTS, at beginning of year 186 53,129 51,397 - - 104.712 1.111.993 r CASH AND CASH EQUIVALENTS, at end of year S 3,118 $ S $ 43,216 $ 82.942 S 129,276 S 104,712 Cash and cash equivalents consist of equity in central treasury including those under the caption "restricted assets" on the balance sheet. 79 KODIAK ISLAND BOROUGH MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FUND BALANCE SHEETS AS OF JUNE 30, 1997 AND 1996 EXHIBIT E -4 1997 1996 ASSETS CURRENT ASSETS: Equity in central treasury Customer receivables Total current assets FIXED ASSETS: Unclassified utility plant in service Equipment Less accumulated depreciation Net fixed assets TOTAL LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable Accrued expenses Customer deposits Due to other funds Total current liabilities ACCRUAL FOR LANDFILL CLOSURE AND POSTCLOSURE COSTS FUND EQUITY: Contributions in aid of construction: State of Alaska Other Accumulated amortization Net contributions in aid of construction Retained deficit, unreserved Total fund equity TOTAL 80 $ 3,118 $ 186 252,564 273,635 255,682 273,821 5,000 149,100 2,205,383 2,205,383 829,797 773,703 3,035,180 2,979,086 (838,765) (737,227) 2,196,415 2,241,859 $ 2,452,097 $ 2,515,680 159,453 225,123 18,488 15,291 - 700 5,000 149,100 182,941 390,214 1,984,423 2,316,713 2,167,364 2,706,927 2,483,473 2,483,473 19,990 19,990 2,503,463 2,503,463 (744,287) (667,482) 1,759,176 1,835,981 (1,474,443) (2,027,228) 284,733 (191,247) $ 2,452,097 $ 2,515,680 i 1 1 1 f 1 1 1 1 1 1 1 r' i I I I KODIAK ISLAND BOROUGH EXHIBIT E -5 MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 11 81 OPERATING EXPENSES: 1997 Personnel services Variance - 362,483 59,377 367,213 Favorable 1996 1,110,129 Budget Actual (Unfavorable) Actual OPERATING REVENUES: 247,268 93,172 385,641 Solid waste collection $ 1,620,230 $ 1,593,818 $ (26,412) $ 1,393,922 Solid waste disposal 892,000 741,941 (150,059) 727,216 Other 10,500 16,568 6,068 15,465 4,899 2,522,730 2,352,327 (170,403) 2,136,603 11 81 OPERATING EXPENSES: Personnel services 421,860 362,483 59,377 367,213 Solid waste collection 1,148,780 1,110,129 38,651 1,087,242 Contracted services 340,440 247,268 93,172 385,641 Repairs and maintenance 40,500 29,229 11,271 49,705 Landfill closure and postclosure costs 335,000 (246,629) 581,629 2,005,956 Depreciation 115,500 110,601 4,899 109,203 General and administration 182,450 176,783 5,667 169,043 Contributions 74,907 (74,907) 45,935 Recycling services 15,000 11,058 3,942 16,232 2,599,530 1,875,829 723,701 4,236,170 Operating income (loss) (76,800) 476,498 553,298 (2,099,567) OTHER INCOME (EXPENSES): Interest income - 770 770 - Loss on sale of fixed assets - (1,288) (1,288) - - (518) (518) - Net income (loss) $ (76,800) 475,980 $ 553.550 (2,099,567) Amortization of contributions in aid of construction 76,805 82,250 Increase (decrease) in retained earnings 552,785 (2,017,317) Retained deficit at beginning of year (2,027,228) (9,911) Retained deficit at end of year $ (1,474,443) $ (2,027,228) ' t 11 81 I KODIAK ISLAND BOROUGH MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1997 AND 1996 EXHIBIT E -6 1997 1996 OPERATING INCOME (LOSS) $ 476,498 $ (2,099,567) ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES: Depreciation Changes in assets and liabilities: Customer receivables Due to other funds Accounts payable Customer deposits Accrual for landfill closure and postclosure costs Other 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 Net cash used for capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES: Interest and dividends paid on investments Net change in cash and cash equivalents CASH AND CASH EQUIVALENTS, at beginning of year CASH AND CASH EQUIVALENTS, at end of year 110,601 109,203 21,071 (70,266) (144,100) 9,100 (65,670) 55,953 (700) - (332,290) 2,005,956 3,197 (5,645) (407,891) 2,104,301 68,607 4,734 (68,595) (11,210) 2,150 370 (66,445) (10,840) 770 - 2,932 (6,106) 186 6,292 $ 3,118 $ 186 82 1 KODIAK ISLAND BOROUGH EXHIBIT E -7 WATER FUND BALANCE SHEETS AS OF JUNE 30, 1997 AND 1996 ASSETS 1997 1996 CURRENT ASSETS: Equity in central treasury $ - $ 46,855 Customer receivables - 30,655 Less allowance for doubtful accounts - (6,901) Net customer receivables - 23,754 Due from component unit - 207,100 Due from other funds - 147,850 Total current assets - 425,559 RESTRICTED ASSETS: Equity in central treasury - 6,274 Temporary investments - - Total restricted assets - 6,274 FIXED ASSETS: Unclassified utility plant in service - 6,012,160 Less accumulated depreciation - (1,303,704) Work -in- process - 311,487 Net fixed assets - 5,019,943 TOTAL LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable Customer deposits Due to City of Kodiak Total liabilities FUND EQUITY: Contributions in aid of construction: City of Kodiak State of Alaska Federal Government Other Accumulated amortization Net contributions in aid of construction Retained earnings, unreserved Total fund equity TOTAL $ - $ 5,451,776 $ - $ 43,356 - 7,249 - 11,905 - 62,510 - 189,166 - 5,482,630 - 277,135 - 28,562 - 5,977,493 - (1,303,627) 4,673,866 715,400 - J,J07,LVV $ - $ 5,451,776 83 KODIAK ISLAND BOROUGH EXHIBIT E -8 WATER FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 OPERATING REVENUES: Water sales Installation charges Other Budget Actual OPERATING EXPENSES: Personnel services Purchased water Repairs and maintenance Depreciation General and administration Operating loss OTHER INCOME: Interest income Net loss Transfer of Water operations to City of Kodiak Amortization of contributions in aid of construction Increase (decrease) in retained earnings Retained earnings at beginning of year Retained earnings at end of year Variance - Favorable 1996 (Unfavorable) Actual $ - $ 457,272 3,600 5,745 466,617 - 17,238 - - 343,167 - - - 22,680 - - - 109,653 - - - 13,829 - - - 506,567 - - - (39,950) (715,400) (715,400) 715,400 6,131 (33,819) 109,645 75,826 639,574 $ 715,400 84 KODIAK ISLAND BOROUGH EXHIBIT E -9 WATER FUND STATEMENTS OF CASH FLOWS ' YEARS ENDED JUNE 30, 1997 AND 1996 1997 1996 OPERATING LOSS $ - $ (39,950) ADJUSTMENTS TO RECONCILE OPERATING LOSS TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES: Depreciation - 109,653 Changes in assets and liabilities: Customer receivables 23,754 10,121 Due from component unit 207,100 (207,100) Due from other funds 147,850 (7,850) Accounts payable (43,356) 10,787 ' Customer deposits (7,249) (19,609) Due to City of Kodiak (11,905) 2,880 Total adjustments 316,194 (101,118) Net cash provided by (used for) operating activities 316,194 (141,068) CASH FLOWS FROM NON - CAPITAL AND RELATED FINANCING ACTIVITIES: Transfer of Water Operations to City of Kodiak (369,323) - Y Net cash used for non - capital and related financing activities (369,323) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets - (311,488) Net cash used for capital and related financing activities - (311,488) CASH FLOWS FROM INVESTING ACTIVITIES: Interest and dividends paid on investments. - 6,131 Net change in cash and cash equivalents (53,129) (446,425) CASH AND CASH EQUIVALENTS, at beginning of year 53,129 499,554 CASH AND CASH EQUIVALENTS, at end of year $ - $ 53,129 "restricted `.' Cash and cash equivalents consist of equity in central treasury including those under the caption assets" on the balance sheet. 1 85 KODIAK ISLAND BOROUGH SEWER FUND BALANCE SHEETS AS OF JUNE 30, 1997 AND 1996 EXHIBIT E -10 ASSETS 1997 1996 CURRENT ASSETS: - 3,172 Equity in central treasury $ - $ 45,123 Customer receivables - 61,094 Less allowance for doubtful accounts - (19,664) Net customer receivables - 41,430 Due from other funds - 296,950 Total current assets - 383,503 RESTRICTED ASSETS: $ - $ 39,285 Equity in central treasury - 6,274 Temporary investments - - Total restricted assets - 6,274 FIXED ASSETS: Unclassified utility plant in service - 10,211,885 Machinery and equipment - 3,172 Less accumulated depreciation - (2,079,035) Work -in- process - 324,763 Net fixed assets - 8,460,785 TOTAL $ - $ 8,850,562 LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable $ - $ 39,285 Due to City of Kodiak - 16,395 Total liabilities - 55,680 FUND EQUITY: Contributions in aid of construction: City of Kodiak - 40,000 State of Alaska - 9,630,603 Federal Government - 297,133 Other - 209,554 - 10,177,290 Accumulated amortization - (2,076,765) Net contributions in aid of construction - 8,100,525 Retained earnings, unreserved - 694,357 Total fund equity - 8,794,882 TOTAL $ - $ 8,850,562 86 KODIAK ISLAND BOROUGH EXHIBIT E -11 SEWER FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) 1997 Variance - Favorable 1996 Budget Actual (Unfavorable) Actual OPERATING REVENUES: Sewer service charges $ - $ - $ - $ 557,107 Other - - - 4,130 - 561,237 OPERATING EXPENSES: Personnel services Purchased sewer treatment Repairs and maintenance Depreciation General and administration (694,357) (694,357) 694,357 12,490 424,291 28,238 197,065 40,790 Operating loss OTHER INCOME: Interest income Net loss Transfer of sewer operations to the City of Kodiak Amortization of contributions in aid of construction Increase (decrease) in retained earnings Retained earnings at beginning of year Retained earnings at end of year 87 702,874 (141,637) 6,131 (135,506) 196,590 61,084 $ 694,357 1 KODIAK ISLAND BOROUGH SEWER FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUN 30, 1997 AND 1996 EXHIBIT E -12 Net cash used for capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES: Interest and dividends on investments (324,762) Net change in cash and cash equivalents (51,397) (554,750) CASH AND CASH EQUIVALENTS, at beginning of year 51,397 606,147 CASH AND CASH EQUIVALENTS, at end of year $ - $ 51,397 Cash and cash equivalents consist of equity in central treasury including those under the caption "restricted assets" on the balance sheet. fl J 88 1 1997 1996 OPERATING LOSS $ - $ (141,637) ADJUSTMENTS TO RECONCILE OPERATING LOSS TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES: Depreciation - 197,065 Changes in assets and liabilities: Customer receivables 41,430 8,315 Due from other funds 296,950 (296,950) Accounts payable (39,285) (11,122) Due to City of Kodiak (16,395) 8,210 Total adjustments 282,700 (94,482) Net cash provided by (used for) operating activities 282,700 (236,119) CASH FLOWS FROM NON - CAPITAL AND RELATED FINANCING ACTIVITIES: Transfer of Sewer Operations to City of Kodiak (334,097) - Net cash used for non - capital and related financing activities (334,097) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets - (324,762) Net cash used for capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES: Interest and dividends on investments (324,762) Net change in cash and cash equivalents (51,397) (554,750) CASH AND CASH EQUIVALENTS, at beginning of year 51,397 606,147 CASH AND CASH EQUIVALENTS, at end of year $ - $ 51,397 Cash and cash equivalents consist of equity in central treasury including those under the caption "restricted assets" on the balance sheet. fl J 88 1 KODIAK ISLAND BOROUGH HOSPITAL FACILITIES FUND BALANCESHEET AS OF JUNE 30, 1997 EX MIT E -13 ASSETS 1997 CURRENT ASSETS: Equity in central treasury $ 43,216 Temporary investments 476,928 Due from other funds 660,000 Inventories 277,007 Total current assets 1,457,151 RESTRICTED ASSETS: Cash with fiscal agent 1,642,622 Temporary investments 150,768 Total restricted assets 1,793,390 FIXED ASSETS: Land and improvements 40,275 Buildings 4,145,676 Machinery and equipment 5,143,558 Work -in- process 2,377,778 Less accumulated depreciation (5,039,009) Net fixed assets 6,668,278 TOTAL $ 9,918,819 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable $ 100,619 Due to other funds 1,500,000 Current portion of long -term debt 492,063 Current portion of capital lease obligations 329,819 Total current liabilities 2,422,501 NONCURRENT LIABILITIES: Long -term debt 2,971,335 Capital lease obligations 1,407,947 Total noncurrent liabilities 4,379,282 6,801,783 FUND EQUITY: Contributed capital: Contributed capital 4,298,512 Retained earnings: Retained deficit, unreserved (1,181,476) Total fund equity 3,117,036 TOTAL $ 9,918,819 89 KODIAK ISLAND BOROUGH EXHIBIT E - HOSPITAL FACILITIES FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL PERIOD FROM APRIL 21, 1997 (INCEPTION) TO JUNE 30, 1997 1997 Variance favorable Budget Actual (unfavorable) OPERATING REVENUES: Rental income $ 2,180,000 $ 120,000 $ (2,060,000) OPERATING EXPENSES: Personnel services Professional services Depreciation General and administration Operating income (loss) - 6,529 (6,529) 65,079 102,097 (37,018) - 102,506 (102,506) 1,125,967 - 1,125,967 1,191,046 211,132 979,914 988,954 (91,132) (1,080,086) OTHER INCOME (EXPENSES): Proceeds from issuance of long -term debt Interest income Interest expense Gain (loss) on disposal of hospital operations, net of proceeds of $2,000,000 Income (loss) before operating transfers OTHER FINANCING SOURCES (USES): Operating transfers in from component units Operating transfers out to other funds Capital projects - hospital Net other financing sources (uses) Net income Retained earnings at beginning of year 545,860 - (545,860) 1,000 7,821 6,821 (269,504) (249,991) 19,513 233,690 (74,971) (308,661) 1,500,000 (408,273) (1,908,273) 726,797 726,797 (1,500,000) (1,500,000) - (1,500,000) (773,203) 726,797 $ - (1,181,476) $ (1,181,476) Retained earnings at end of year $ (1,181,476) 90 1 t 1 I � I � I , I I KODIAK ISLAND BOROUGH HOSPITAL FACILITIES FUND STATEMENT OF CASH FLOWS PERIOD FROM APRIL 21, 1997 (INCEPTION) TO JUNE 30, 1997 EXHIBIT E -15 1997 OPERATING LOSS $ (91,132) ADJUSTMENTS TO RECONCILE OPERATING LOSS TO NET CASH USED FOR OPERATING ACTIVITIES: Depreciation 102,506 Changes in assets and liabilities: Due from other funds (660,000) Accounts payable 100,619 Due to other funds 1,500,000 Total adjustments 1,043,125 Net cash used for operating activities 951,993 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash transferred from hospital component unit 203,692 Equity transfers -out to capital projects funds (1,405,646) Operating transfer -out to capital projects funds (1,500,000) Operating transfers -in from hospital component unit 726,797 Net cash used for noncapital financing activities (1,975,157) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (2,377,778) Interest paid on note payable and capital leases (249,991) Proceeds from issuance of note payable 4,471,910 Proceeds from disposal of component unit hospital operation 2,000,000 Principal payments on note payable (462,648) Principal payments on capital lease obligations (52,616) Net cash provided by capital and related financing activities 3,328,877 CASH FLOWS FROM INVESTING ACTIVITIES: Interest and dividends paid on investments 7,821 Purchase of investments (476,928) Additions to restricted cash (1,793,390) Net cash used for investing activities (2,262,497) Net change in cash and cash equivalents 43,216 CASH AND CASH EQUIVALENTS, at beginning of year - AI CASH AND CASH EQUIVALENTS, at end of year $ 43,216 , , 91 KODIAK ISLAND BOROUGH 911 SERVICES FUND BALANCE SHEET AS OF JUNE 30, 1997 EXHIBIT E -16 ASSETS 1997 ASSETS: Equity in central treasury $ 82,942 Customer receivables 10,650 Total assets $ 93,592 FUND EQUITY FUND EQUITY: Retained earnings, unreserved $ 93,592 TOTAL $ 93,592 92 KODIAK ISLAND BOROUGH 911 SERVICES FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 EXHIBIT E -17 OPERATING REVENUES: Customer charges 1997 Variance - Favorable Budget Actual (Unfavorable) 70,000 93,592 23,592 OPERATING EXPENSES: Telephone services Operating income Net income Increase (decrease) in retained earnings Retained earnings at beginning of year Retained earnings at end of year 70,000 - 70,000 70,000 - 70,000 - 93,592 93,592 $ - 93,592 $ 93,592 93,592 $ 93,592 93 KODIAK ISLAND_ B OROUGH EXHIBIT E -18 911 SERVICES FUND STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1997 1997 OPERATING INCOME $ 93,592 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Changes in assets and liabilities: Customer receivables (10,650) Total adjustments (10,650) Net cash provided by operating activities 82,942 Net change in cash and cash equivalents 82,942 CASH AND CASH EQUIVALENTS, at beginning of year - CASH AND CASH EQUIVALENTS, at end of year $ 82,942 Cash and cash equivalents consist of equity in central treasury including those under the caption "restricted assets" on the balance sheet. 94 INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the funding of goods or services provided between departments of the govern- mental unit or to other governments or non - profit agencies on a cost - reimbursement basis. KODIAK ISLAND BORO EXIHBIT F -1 MANAGEMENT INFORMATION SYSTEM FUND BALANCE SHEETS AS OF JUNE 30, 1997 AND 1996 1997 1996 ASSETS CURRENT ASSETS: Equity in central treasury Account receivables, net Prepaid expenses Total current assets FIXED ASSETS: Machinery and equipment Less accumulated depreciation Net fixed assets TOTAL LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable Accrued liabilities Total current liabilities FUND EQUITY: Contribution in aid of construction Retained deficit Total fund equity TOTAL $ 81,106 $ 136,925 17,725 25,272 33,696 124,103 170,621 912,329 807,313 (504,746) (430,994) 407,583 376,319 $ 531,686 $ 546,940 $ 1,286 $ 6,281 36,460 42,618 37,746 48,899 617,382 617,382 (123,442) (119,341) 493,940 498,041 $ 531,686 $ 546,940 95 KODIAK ISLAND BOROUGH EXHIBIT F -2 MANAGEMENT INFORMATION SYSTEM FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1997 (with comparative totals for 1996) OPERATING REVENUES: Charges for services: General Fund Day Care Assistance Fund Municipal Solid Waste Collection and Disposal Fund Land Sale Fund Kodiak Island Hospital and Care Center Sale of copies OPERATING EXPENSES: Personnel services Repairs and maintenance Depreciation Supplies General and administration Net loss RETAINED DEFICIT, at beginning of year RETAINED DEFICIT, at end of year 1997 Variance - Favorable 1996 Budget Actual (Unfavorable) Actual $ 445,860 $ 467,377 $ 21,517 $ 579,904 1,750 1,800 50 2,010 3,280 2,964 (316) 5,439 7,660 3,303 (4,357) 8,968 108,000 91,156 (16,844) 55,000 41,700 27,491 (14,209) 29,735 608,250 594,091 (14,159) 681,056 431,520 404,896 26,624 441,589 26,998 28,423 (1,425) 33,092 61,390 73,752 (12,362) 155,869 30,984 32,958 (1,974) 29,372 57,358 58,163 (805) 52,631 608,250 598,192 10,058 712,553 $ - (4,101) $ (4,101) (31,497) (119,341) (87,844) $ (123,442) $ (119,341) 96 1, KOD IAK ISLAND BOROUGH EXHIBIT F -3 MANAGEMENT INFORMATION SYSTEMS FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1997 AND 1996 1997 1996 OPERATING LOSS ADJUSTMENTS TO RECONCILE OPERATING LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation Changes in assets and liabilities: Accounts receivables, net Prepaid expenses Accounts payable Accrued liabilities Total adjustments Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition and construction of capital assets Net change in cash and cash equivalents CASH AND CASH EQUIVALENTS, at beginning of year CASH AND CASH EQUIVALENTS, at end of year $ (4,101) $ (31,497) 73,752 155,869 (17,725) - 8,424 (33,696) (4,995) (1,903) (6,158) 10,708 53,298 130,978 49,197 99,481 (105,016) (87,729) (55,819) 11,752 136,925 125,173 $ 81,106 $ 136,925 Cash and cash equivalents consist of equity in central treasury including those under the caption, "restricted assets ", on the balance sheet. 97 II 1 0 ' 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. 1 1 Pj 0 KODIAK ISLAND BOROUGH EXHIBIT G -1 DEFERRED COMPENSATION PLAN COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED JUNE 30, 1997 Balance at July 1, 1996 ASSETS Balance at Deductions June 30, 1997 Investments (at market value) $ 1,515,239 $ - $ 1,515,239 $ - LIABILITIES Due to participants $ 1,515,239 $ - $ 1,515,239 $ - Additions 99 l_ 1 1 i GENERAL FIXED ASSETS ACCOUNT GROUP 1 ' 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 fl 1 1 n KODIAK ISLAND BOROUGH EXHIBIT H -1 GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF FIXED ASSETS BY SOURCE AS OF JUNE 30, 1997 1997 GENERAL FIXED ASSETS: Land S 5,397,389 Buildings 88,300,021 Improvements other than buildings 846,690 Machinery and equipment 1,423,068 Construction work -in- progress 24,668,482 TOTAL S 120,635,650 INVESTMENT IN GENERAL FIXED ASSETS: Capital Projects Funds: General obligation bonds S 77,468,662 Federal grants 4,316,206 State grants 17,504,058 General Fund revenues 8,111,544 Special Revenue Fund revenues 4,137,121 Contributions from State of Alaska 3,786,861 Contributions from Federal Government 1,259,300 Contributions from others 4,051,898 TOTAL S 120,635,650 101 KODIAK ISLAND BOROUGH EXHIBIT H -2 I GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY AS OF JUNE 30, 1997 Staff agencies: Borough mayor Borough clerk Finance department Assessing department Community development department Borough engineering and facilities department Land sales General administration Mental Health Center Child Care Assistance Program Coastal management Total staff agencies Public safety: Emergency preparedness Fire Protection Area No. 1 Womens Bay Service Area Woodland Acres Street Light Service Area Total public safety Schools Teacher housing General government buildings Building sites Playgrounds Other Undeveloped land Construction work -in- progress Total general fixed assets 102 1 Improvements Machinery Other Than and Total Land Buildings Buildings Equipment $ 23,189 $ - $ - $ - $ 23,189 38,646 - - - 38,646 114,860 - - - 114,860 62,000 - - - 62,000 125,753 - - - 125,753 82,075 - - - 82,075 19,272 - - - 19,272 127,715 - - - 127,715 157,625 - - - 157,625 1,240 1,123 - - - - - - 1,240 1,123 753,498 - - - 753,498 227,598 - 100,000 - 127,598 1,123,080 241,136 614,520 - 267,424 639,415 425,655 - 213,760 , 3,014 3,014 - 1,993,107 241,136 1,140,175 3,014 608,782 81,240,673 - 81,240,673 - - 125,715 - 125,715 - - 4,825,783 - 4,793,458 1,537 30,788 404,402 404,402 - 710,239 - - 710,239 i 1,161,900 - 1,000,000 131,900 30,000 88,468,712 404,402 87,159,846 843,676 60,788 4,751,851 4,751,851 - - - 95,967,168 5,397,389 88,300,021 846,690 1,423,068 24,668,482 - 24,324,585 - 343,897 $120,635,650 $ 5,397,389 $112,624,606 $ 846,690 $ 1,766,965 102 1 I I KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED JUNE 30, 1997 EXHIBIT H -3 General Fixed General Fixed Assets at Assets at July 1, 1996 Additions Deletions June 30, 1997 Staff agencies: Borough mayor $ 23,189 $ - $ - $ 23,189 Borough clerk Finance department Assessing department Community development department Borough engineering and facilities department Data processing Land sales General administration Mental Health Center Child Care Assistance Program Coastal management Total staff agencies Public safety: Emergency preparedness Fire Protection Area No. 1 Womens Bay Fire District Woodland Acres Street Light Service Area Total public safety Schools Teacher housing General government buildings Building sites Playgrounds Other I Undeveloped land Construction work -in- progress Total general fixed assets 38,646 - - 38,646 106,260 8,600 - 114,860 54,056 7,944 - 62,000 121,100 4,653 - 125,753 80,725 1,350 - 82,075 19,272 - - 19,272 127,715 - - 127,715 157,117 508 - 157,625 1,240 - - 1,240 1,123 - - 1,123 730,443 23,055 - 753,498 226,303 1,295 - 227,598 962,644 160,436 - 1,123,080 638,411 1,004 - 639,415 3,014 - - 3,014 1,830,372 162,735 - 1,993,107 68,388,724 12,851,949 - 81,240,673 125,715 - - 125,715 4,432,356 393,427 - 4,825,783 404,402 - - 404,402 710,239 - - 710,239 1,161,900 - - 1,161,900 75,223,336 13,245,376 - 88,468,712 4,751,851 - - 4,751,851 82,536,002 13,431,166 - 95,967,168 26,326,595 11,732,032 13,390,145 24,668,482 $ 108,862,597 $ 25,163,198 $ 13,390,145 $ 120,635,650 103 1 LJ u 1 1 1 r I r Ij 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. KODIAK ISLAND BOROUGH GENERAL LONG TERM DEBT ACCOUNT GROUP SCHEDULES OF LONG -TERM DEBT AS OF JUNE 30, 1997 AND 1996 EXHIBIT 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 Accrued annual leave Amount to be provided: General obligation bonds Environmental Protection Agency loan TOTAL GENERAL OBLIGATION BONDS: 1989 refunding 1993 bonds 1994 bonds OTHER LONG -TERM DEBT: Environmental protection agency loan Accrued annual leave TOTAL 1997 1996 $ 549,569 $ • 1,759,644 260,319 258,322 809,888 2,017,966 21,100,891 21,445,356 156,248 177,081 21,257,139 21,622,437 $ 22,067,027 $ 23,640,403 $ 4,195,000 $ 5,085,000 7,480,000 8,135,000 9,985,000 9,985,000 21,660,000 23,205,000 156,248 177,081 250,779 258,322 407,027 435,403 $ 22,067,027 $ 23,640,403 105 ADDITIONAL INFORMATION BONDED INDEBTEDNESS The following schedules reflect total bonded indebtedness of the Borough by bond issue. Each issue outstanding is reflected by date, interest rate, inclusive bond numbers, and amount of principal and interest due. Total indebtedness is reflected on a summary page of all debts not defeased. KODIAK ISLAND BOROUGH EXHIBIT J -1 KODIAK, ALASKA SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY AS OF JUNE 30, 1997 Annual principal and interest requirements on General Obligation Refunding and Construction Bonds. Year Prin cipal Inte To tal 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, 1,57 S 21,660,000 S 9,924,023 S 31,58 107 KODIAK ISLAND BOROUGH EXHIBIT J -2 KODIAK, ALASKA GENERAL OBLIGATION SCHOOL REFUNDING BONDS, SERIES 1989 RETIREMENT SCHEDULE 1989 Bond Issue This issue, dated May I, 1989, consists of 2,000 bonds in the amount of $5,000 each, totaling $10,000,000. Bonds numbered I through 1161 have been retired. Bonds number 1162 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 I 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, Alaska. Bonds were issued to refund the 1980 issue. Bonds are payable at First Trust N.A., St. Paul, Minnesota. 2001 7.00 1770 -2000 1,15 5,000 40,42 - 1,195,42 $ 4,195,00 $ 376, $ 231,35 $ 4,803,04 * Maturities on and after August 1, 1997 are callable at any interest date thereafter. 108 Bond Principal Interest Interest Fiscal Interest Numbers Due Due Due Year Rate Inclusive August 1 August 1 February 1 To tal 1998 6.85 1162 -1350 $ 945,000 $ 145,338 $ 112,972 $ I,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 1,15 5,000 40,42 - 1,195,42 $ 4,195,00 $ 376, $ 231,35 $ 4,803,04 * Maturities on and after August 1, 1997 are callable at any interest date thereafter. 108 KODIAK ISLAND BOROUGH EXHIBIT J -3 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 First Trust N.A., St. Paul, Minnesota. 109 Interest Principal Interest Fiscal Interest Due Due Due Year Rate August 15 February 1 5 February 15 Total 1998 5.25 $ 168,132 $ (695,000 $ 168,132 $ 1,031,264 1999 3.90 149,889 730,000 149,889 1,029,778 2000 4.05 135,654 760,000 135,654 1,031,308 2001 4.20 120,264 790,000 120,264 1,030,528 2002 4.35 103,674 825,000 103,674 1,032,348 2003 4.40 85,730 860,000 85,730 1,031,460 2004 4.55 66,810 900,000 66,810 1,033,620 2005 4.75 46,335 940,000 46,335 1,032,670 2006 4.90 24,01 980,000 24,010 1,028,020 $ 900,4 $ 7,480,0 $ 900, $ 9,280,996 109 KODIAK ISLAND BOROUGH EXHIBIT J -4 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 First Trust N.A., St. Paul, Minnesota. Principal Interest Due Due February 15 February 15 Total $ - $ 272,355 $ 544,710 1,030,000 1,085,000 1,145,000 1,205,000 1,270,000 1,340,000 1,415,000 1, 495,000 $ 3,757,492 $ 9,985,000 272,355 544,710 Interest Fiscal Interest Due Yea Rate August 15 1998 272,355 $ 272,355 1999 544,710 272,355 2000 272,355 272,355 2001 1,574,090 272,355 2002 184,335 272,355 2003 1,573,600 272,355 2004 80,025 272,355 2005 1,57 7, 2 24 272,355 2006 272,355 2007 5.40 272,355 2008 5.40 244,545 2009 5.40 215,250 2010 5.40 184,335 2011 5.50 151,800 2012 5.50 116,875 2013 5.50 80,025 2014 5.50 41, Principal Interest Due Due February 15 February 15 Total $ - $ 272,355 $ 544,710 1,030,000 1,085,000 1,145,000 1,205,000 1,270,000 1,340,000 1,415,000 1, 495,000 $ 3,757,492 $ 9,985,000 272,355 544,710 272,355 544,710 272,355 544,710 272,355 544,710 272,355 544,710 272,355 544,710 272,355 544,710 272,355 544,710 272,355 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, 1,57 7, 2 24 $ 3,757,492 $ 17,499,984 110 KODIAK ISLAND BOROUGH EXHIBIT J -5 KODIAK, ALASKA ASBESTOS REMOVAL LOAN PAYABLE RETIREMENT SCHEDULE This debt was incurred June 20, 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, Alaska. * No interest is payable until a payment due is in default; then interest, penalties and fees become due. 111 Principal Principal Fiscal Interest Due Due Interest Year Rate* December 3 June 30 Due* Total 1998 7.00 $ 10,417 $ 10,417 $ - $ 20,834 1999 7.00 10,416 10,416 - 20,832 2000 7.00 10,417 10,417 - 20,834 2001 7.00 10,416 10,416 - 20,832 2002 7.00 10,417 10,417 - 20,834 2003 7.00 10,416 10,416 - 20,832 2004 7.00 10,417 10,417 - 20,834 2005 7.00 10,416 - - 10, $ 83 $ 72,91 $ - $ 156,24 * No interest is payable until a payment due is in default; then interest, penalties and fees become due. 111 1 1 k s 1 n �1 n STATISTICAL SECTION Statistical Tables provide report users with a better historical perspective in assessing current financial status and trends of the Borough. KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (a) LAST TEN FISCAL YEARS TABLE I Other Fiscal General Health and Operating Year Government Sanitation (b) Education (b) Transfers Total 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 1995 2,681,472 1,442,644 3,861,967 164,649 8,150,732 1996 2,941,453 1,390,307 4,678,830 267,594 9,278,184 1997 2,664,204 1,393,016 5,083,942 250,000 9,391,162 (a) Includes general fund only. (b) Includes operating transfers for this function Source: Borough general ledger 113 KODIAK ISLAND BOROUGH TABLE 2 KODIAK, ALASKA GENERAL REVENUES BY SOURCE (a) LAST TEN FISCAL YEARS Fiscal Year Taxes 1988 $ 2,691,065 1989 2,515,436 1990 2,640,044 1991 2,823,929 1992 4,067,934 1993 4,481,158 1994 4,674,382 1995 5,976,914 1996 5,693,539 1997 5,582,037 (a) Includes general fund only. Source: Borough general ledger Licenses, Inter - Permits Governmental Investment Operating and Fees Revenue Income Transfers Total $ 98,059 $ 2,291,627 $ 355,802 $ 114,635 $ 5,551,188 95,748 3,449,948 354,523 56,410 6,472,065 120,145 1,316,238 540,851 68,790 4,686,068 100,868 2,255,951 456,381 173,230 5,810,359 212,936 2,450,339 367,551 81,670 7,180,430 433,825 1,991,730 289,570 - 7,196,283 457,895 2,053,750 291,046 - 7,477,073 928,079 1,633,162 659,794 - 9,197,949 285,100 2,396,704 452,196 - 8,827,539 108,483 2,396,272 371,414 9,672 8,467,878 114 KODIAK ISLAND BOROUGH TABLE 3 KODIAK, ALASKA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS ►des I 6 3 7, 567, 4 `1 1 i� O I g, 345 vess g, s l 7/ 294/ y g 9 .7 6 165 075, HS 071 ,3S 7 Sz7, IS - 7 i I - - z I, 671, j6,yy 115 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 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 1995 5,148,672 4,955,108 96.2 56,140 5,011,248 97.3 232,679 4.5 1996 5,471,834 5,249,401 95.9 56,531 5,089,332 93.0 289,210 5.3 1997 5,576,773 / 5,480,659 98.3 96,490 5,577,149 100.0 192,722 3.5 lqqg' 7391 7 Iz1 10 77,576 - 7 1 i99, 97s 36S3S3 `l ,9 Source: Borodgh general ledger ►des I 6 3 7, 567, 4 `1 1 i� O I g, 345 vess g, s l 7/ 294/ y g 9 .7 6 165 075, HS 071 ,3S 7 Sz7, IS - 7 i I - - z I, 671, j6,yy 115 KODIAK ISLAND BOROUGH TABLE 4 KODIAK, ALASKA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Source: Borough assessment and tax records Last Ten Years Assessed Values 800,000,000 6� i 600,000,000 ryo �8i y %y s e's .3ys psi 400,000,000 �P� 200, 000, 000 0 1988 1989 1890 1991 1992 1993 1994 1995 1998 1997 116 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 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 1 "7S 994 515,954,650 539,053,753 98,616,145 319,052,138 614,570,795 858,105,891 71.62 1 '1� 1995 538,627,500 560,459,900 101,835,076 318,741,600 640,462,576 879,201,500 72.85 1 1 1 7 1996 549,456,964 565,281,400 104,677,687 312,465,100 654,134,651 877,746,500 74.52 1 °1 1 C' 1997 573,742,998 587,145,000 107,599,894 310,049,900 681,342,892 897,194,900 75.94 Source: Borough assessment and tax records Last Ten Years Assessed Values 800,000,000 6� i 600,000,000 ryo �8i y %y s e's .3ys psi 400,000,000 �P� 200, 000, 000 0 1988 1989 1890 1991 1992 1993 1994 1995 1998 1997 116 II KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY TAX RATES AND CONTRIBUTIONS TO THE SCHOOL DISTRICT PER 100 OF ASSESSED ' ( $ VALUE) LAST TEN FISCAL YEARS TABLE 5 Woodland KIB City Fiscal General of Year Fund Kodiak 1988 4.51 2.00 1989 4.50 2.00 1990 4.50 2.00 1991 4.50 2.00 1992 5.50 2.00 1993 5.50 2.00 1994 5.50 2.00 1995 6.75 2.00 1996 6.75 2.00 1997 6.75 2.00 Woodland Assessed Amount of Millage Year Value Contribution Acres ' IoS�Q�3� 3as 1988 $ 428,764,585 $ Street 6.20 ROAD SERVICES AREAS 423,038,700 ✓/ FIRE AREAS Lighting Monashka Service Bay View Womens Service Womens Area Bay District 1 Road Bay Area No. 1 Bay 1993 591,436,473 3,723,411 0.00 2.00 0.25 1.00 0.50 1.50 0.25 0.00 2.00 0.25 1.50 1.50 1.50 0.25 0.00 1.25 0.70 1.00 1.50 1.25 1.25 0.75 2.00 1.00 1.00 2.50 1.25 1.25 0.75 2.00 1.75 1.00 2.50 1.25 1.25 0.75 2.00 1.75 1.00 2.50 1.25 1.25 0.75 2.00 1.75 1.00 2.50 1.50 1.25 0.75 1.50 1.75 1.00 2.00 1.50 1.25 0.50 1.75 1.75 1.00 2.00 1.50 1.25 0.50 1.50 1.75 1.00 2.00 1.50 1.25 Fiscal Assessed Amount of Millage Year Value Contribution Equivalent ' IoS�Q�3� 3as 1988 $ 428,764,585 $ 2,657,568'_ 6.20 1989 423,038,700 ✓/ 2,880,982 6.81 1990 452,016,912 ,/ 2,869,558 6.35 1991 516,304,869 2,944,606 5.70 1992 559,359,084 3,779,444 6.76 1993 591,436,473 3,723,411 6.30 1994 614,510,795 3,795,847 6.18 1995 ,- 640,462,576 3,969,399 6.20 1996 -- -654,134,651 4,773,968 7.30 1997 -- 681,342,892 5,199,877 7.63 '!,71 -1, y Source: Borough ordinance and assessment CONTRIBUTIONS TO THE SCHOOL DISTRICT 117 KODIAK ISLAND BOROUGH TABLE 6 KODIAK, ALASKA TEN LARGEST PROPERTY TAXPAYERS YEAR ENDED JUNE 30, 1997 Totals 15.2% $ 103,538,110 $ 1,057,607 19.0% Source: Borough tax records. 118 Percentage Percentage of Total 1996 Net of Total Assessed Assessed Taxes Taxes Value Valuation Levied Levied International Seafoods 2.1% S 14,062,209 $ 146,649 2.6% Tyson Seafoods 2.0% 13,829,068 140,531 2.5% Western Alaska Fisheries 1.7% 11,299,304 115,026 2.1% Ocean Beauty Seafood 1.5% 10,263,993 110,436 2.0% Alaska Pacific Seafoods 1.5% 10,120,028 101,961 1.8% Sea -Land Services 1.4% 9,437,400 101,806 1.8% T.U. of the Northland 1.5% 10,299,432 99,256 1.8% Kodiak Fishmeal Co. 1.3% 9,091,653 89,139 1.6% Safeway/MBPA 1.2% 8,099,123 87,720 1.6% Leisnoi 1.0% 7,035,900 65,082 1.2% Totals 15.2% $ 103,538,110 $ 1,057,607 19.0% Source: Borough tax records. 118 KODIAK ISLAND BOROUGH TABLE 7 KODIAK, ALASKA RATIO OF NET GENERAL BONDED DEBT (a) LAST TEN FISCAL YEARS 119 Ratio Net of Net Bonded Less Debt Bonded Debt Debt Fiscal Assessed Gross Service Net Bonded to Assessed Per Year Population Value Bonded Debt Fund Debt Value Capita 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 (1) 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 1995 15,575 640,462,576 25,665,000 2,075,768 23,589,232 3.7 1,515 1996 15,400 '`) 654,134,651 23,205,000 1,759,644 21,445,356 3.3 1,393 1997 15,048 '`) 681,342,892 21,660,000 549,569 21,110,431 3.1 1,403 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 Community Development Department based on the "Housing Unit Method." (c) Information obtained from State of Alaska, Department of Community and Regional Affairs, Certified Population for Revenue Sharing Program. 119 KODIAK ISLAND BOROUGH TABLES KODIAK, ALASKA COMPUTATION OF DIRECT AND OVERLAPPING DEBT AS OF JUNE 30, 1997 Percentage Kodiak Island Net Debt Applicable to this Borough Outstanding Governmental Share of (a) Unit (b) Debt (c) Kodiak Island Borough: General obligation bonds $ 21,110,431 100% $ 21,110,431 City of Kodiak: General obligation bonds - - Revenue bonds 4,955,000 100% 4,955,000 Total $ 26,065,431 $ 26,065,431 (a) Gross debt outstanding Iess 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. 120 KODIAK ISLAND BOROUGH TABLE 9 KODIAK, ALASKA COMPUTATION OF LEGAL DEBT MARGIN AS OF JUNE 30, 1997 Assessed value Plus exempt property Total $ 681,342,892 2,420,596,952 $ 3,101,939,844 The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions. Debt capacity is ultimately determined by the voters and the marketplace. Source: Borough assessment records. 121 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 Source: Borough general ledger and debt documents 122 Total Ratio of General Debt Service Fiscal Interest Total Debt Expenditures to General Year Principal (a) and Fees Service and Transfers Expenditures 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 2,615,235 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 1995 2,270,833 1,760,185 4,031,018 8,150,732 49.5 1996 2,480,833 1,386,681 3,867,514 9,278,184 41.7 1997 1,565,833 1,239,996 2,805,829 9,391,162 29.9 (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 122 KODIAK ISLAND BOROUGH TABLE 11 KODIAK, ALASKA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS 123 Fiscal School Unemployment Year Population (a) Enrollment (b) Rate (c) 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 1995 15,575 2,773 11.2 1996 15,400 2,804 13.7 1997 15,048 2,832 7.7 Sources: (a) 1990 per U.S. Bureau of Census; other years per Borough Community Development Department, except 1992 and 1993.1996 data per State of Alaska, DCRA certified population. (b) Kodiak Island Borough School District. (c) Department of Labor, Anchorage. 123 KODIAK ISLAND BOROUGH KODIAK, ALASKA SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS YEAR ENDED JUNE 30, 1997 TABLE 12 Amount of Annual Surety Name of Official Title Salary Bond (1) Jerome Selby Mayor $ 76,367 (2) See page vi of introductory section Assembly members 2,400 (2) Contracted Attorney - Karleton Short Finance Director /Treasurer 83,553 $ 1,000,000 Earl Smith Fire Chief, Service Area One 77,587 - Perry Page Data Processing Manager 75,695 - Donna Smith Borough Clerk 62,126 - Linda Freed Community Development Director 87,783 - Jennifer Dannewitz Cashier 30,359 50,000 Patrick Carlson Assessor/ Appraiser 73,879 - Martin White Director of Mental Health Center 75,695 - Steve Hobgood Engineering and Facilities Coordinator 70,290 - Cheryl Bolger General Accountant 56,284 Kelh Veech Revenue Accountant 52,265 - (1) The Kodiak Island Borough Assembly elected by ordinance in 1984 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. 124 KODIAK ISLAND BOROUGH TABLE 13 KODIAK, ALASKA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS *Estimated actual value of real property. Source: Borough assessing records, City of Kodiak building department and local bankers. 125 CONSTRUCTION PROPERTY VALUE* Commercial Residential Deposits Fiscal No. of No. of in Local Year Permits Value Permits Value Banks Commercial Residential Nontaxable 1988 42 $ 549,382 91 $ 4,314,003 $ 72,068,409 $ 123,053,031 $ 255,417,891 $ 1,159,131,464 1989 22 1,174,346 131 6,421,773 93,830,000 128,202,254 266,409,021 1,177,364,559 1990 18 1,709,715 104 8,109,662 90,221,433 115,477,806 314,539,889 1,993,871,408 1991 69 3,692,371 152 5,706,524 90,392,243 130,469,150 323,060,260 2,002,661,025 1992 48 3,748,125 163 9,201,613 103,679,201 134,637,371 333,203,846 2,027,200,278 1993 55 3,359,264 143 6,218,434 94,838,546 148,714,050 350,458,405 2,271,468,957 1994 45 2,947,984 146 5,037,061 98,970,444 148,156,300 367,798,350 2,354,550,201 1995 59 6,055,321 159 4,305,352 103,838,289 155,755,000 382,872,500 2,404,513,974 1996 41 3,862,599 160 7,864,907 108,116,331 157,911,064 391,545,900 2,404,872,414 1997 36 1,559,938 112 6,262,439 108,926,259 161,787,264 411,955,734 2,420,596,952 *Estimated actual value of real property. Source: Borough assessing records, City of Kodiak building department and local bankers. 125 KODIAK ISLAND BOROUGH KODIAK, ALASKA MISCELLANEOUS STATISTICAL DATA LAST TEN FISCAL YEARS TABLE 14 Date of incorporation - September 30, 1963, Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended, Form of Government - Mayor/ Assembly. 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 Land area - square miles 4,900 7130 (a) 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7130 Miles of improved street 21.5 213 21.5 215 21.5 2L5 21.6 21.6 21 6 247 Miles of sanitary sewers 16.0 160 16.0 16.0 16.0 16.7 16.8 17 17 0 (d) Number of water taps 707 748 748 748 873 877 913 921 921 0 (d) Number of sanitary sewer taps 666 727 727 727 851 858 891 899 899 0 (d) Building permits: Permits issued 133 153 122 221 211 108 191 218 201 148 Value of buildings (thousands) S 4,863.4 S 7,596.1 S 9,819.3 S 9,398.9 S 12,950.0 $ 9,577.7 f 4,740.0 S 10,360.0 S 11,727.5 57,822.40 Fire protection: Number of fire stations 2 2 2 2 2 2 2 2 2 2 Number of employees 1 I I 1 I I I I I 1 Police protection - none Recreation: �.+ Parks - number of acres 223 223 223 223 223 223 223 223 224 224 N Facilities. Number of playgrounds IS 15 15 15 15 15 I5 15 16 16 Number of swimming pools I I I I I I I I I 1 Education: Number of schools: City of Kodiak Elementary 3 3 3 3 3 3 3 3 4 4 City of Kodiak Junior High I I I I I I I I I I City of Kodiak High School I I I I I I I I I I Village Schools (b) 7 8 8 9 9 9 9 9 9 9 Number of support personnel (c) 167 172 165 175 166 171 180 I80 104 (e) 101 Number of teachers 169 167 167 167 164 172 191 195 199 199 Number of students 2,351 2,304 2,328 2,398 2,614 2,632 2,802 2,773 2,804 2832 Number of municipal employees 57 66 70 75 72 67 64 65 63 63 Elections: Number of registered voters 5,427 6,150 6,352 6,707 6,263 6,654 7,061 7,382 8,217 9350 Number voting in last election 2,507 1,459 2,327 1,959 1,986 2,328 2,634 2,113 1,471 2120 Percent of registered voters 462% 23.7% 37.0% 29.0% 31.8% 35.0% 37.0% 29.01% 29.0% 22.7 (a) By annexation, effective March 4, 1989 the Borough has grown an additional 12,830 square miles (d) As of July 1, 1996 the City of Kodiak assumed ownership, maintenance, and operation of the existing Total Borough is now 22,395 square miles with a land mass of 7,130 square miles (see map on page ix.) water and sewer utilities in Service District (b) The majority of Village Schools are grades K -12. (e) In FY 96 this was changed to full time equivalents. (c) All non - teaching employees. Source: Borough records. M M M M® r ® M i M M r M i M M M M M