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CAFR FY19991 r KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 1999 ' Kodiak, Alaska Gary Stevens, Borough Mayor h Prepared by Finance Department: Karleton Short, Finance Director Marian Royall, Revenue Accountant Mary Munk, General Accountant KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 1999 TABLE OF CONTENTS INTRODUCTORY SECTION FINANCIAL SECTION EXHIBIT PAGE INDEPENDENT AUDITORS' REPORT ........................................................... ............................... GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Unit ................................................................................. ..............................1 PAGE ELECTED OFFICIALS ( PHOTOGRAPHS) .......................................................... ............................... v BOROUGH OFFICIALS ......................................................................................... ............................... vii BOARDSAND COMMITTEES ............................................................................. ............................... viii MAP OF KODIAK ISLAND BOROUGH .............................................................. ............................... x GFOA CERTIFICATE OF ACHIEVEMENT ........................................................ ............................... xi ORGANIZATIONALCHART ............................................................................... ............................... xii LETTEROF TRANSMITTAL ............................................................................... ............................... xiii FINANCIAL SECTION EXHIBIT PAGE INDEPENDENT AUDITORS' REPORT ........................................................... ............................... GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Unit ................................................................................. ..............................1 4 Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances - All Governmental Fund Types and Discretely Presented Component Unit ................................................................ ..............................2 8 Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances - Budget and Actual - General Fund, Special Revenue Fund and Debt Service Fund ................................................... ..............................3 10 Combined Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings (Accumulated Deficits) - Proprietary Fund Types ................ ..............................4 12 Combined Statement of Cash Flows - ProprietaryFund Types ...................................................................................... ..............................5 13 Notes to the Combined Financial Statements (an integral part of the combined financial statements) 15 Required Supplementary Information .................................................................... ............................... 41 ADDITIONAL INFORMATION COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS AND SCHEDULES GENERAL FUND: BalanceSheets .................................................................................................... ............................A -1 43 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual ............................................................ ............................A -2 44 Schedule of Expenditures and Transfers - Budget and Actual. ....................................................... A-3 46 KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 1999 TABLE OF CONTENTS (continued) DEBT SERVICE FUNDS: CombiningBalance Sheet ................................................................................... ............................0 -1 79 Combining Statement of Revenues, Expenditures Transfers, and Changes in Fund Balances ..................................................... ............................... C -2 80 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual: Bonds........................................................................................................... ............................... C -3 81 Other............................................................................................................... ............................0 -4 82 CAPITAL PROJECTS FUNDS: CombiningBalance Sheet ................................................................................... ............................D -1 84 Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances (Accumulated Deficits) ................... ............................D -2 86 Schedule of Capital Projects ............................................................................... ............................D -3 88 ii EXHIBIT PAGE SPECIAL REVENUE FUNDS: CombiningBalance Sheet ................................................................................... ............................B -1 52 Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances (Accumulated Deficits) ................................... ............................B -2 56 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual: Fire and Road Service Areas: Fire: Fire Protection Area No. 1 .................................................................... ............................B -3 59 WomensBay Fire Department ............................................................... . .......................... B -4 60 Kodiak Airport Fire District .................................................................. ............................B -5 61 Road: Monashka Bay Road Service Area ....................................................... ............................B -6 62 ServiceDistrict No. 1 ............................................................................ ............................B -7 63 Womens Bay Service Area ................................................................... ............................B -8 64 Bay View Road Service Area ............................................................... ............................B -9 65 ServiceArea No. 2 ............................................................................... ...........................B -10 66 MentalHealth Center .................................................................................. ...........................B -11 67 CoastalManagement .................................................................................. ...........................B -12 68 Child Care Assistance Program .................................................................. ...........................B -13 69 Welfareto Work Program .......................................................................... ...........................B -14 70 LandSales ................................................................................................... ...........................B -15 71 Buildingsand Grounds ............................................................................... ...........................B -16 72 Woodland Acres Street Light Service Area ................................................ ...........................B -17 73 KodiakArts Council ................................................................................... ...........................B -18 74 Facilities...................................................................................................... ...........................B -19 75 Tourism Development ............................................................................ ............................... B -20 76 Kodiak Transit Authority ............................................................................ ...........................B -21 77 L. E. P. C . ................................................................................................................................. B-22 78 DEBT SERVICE FUNDS: CombiningBalance Sheet ................................................................................... ............................0 -1 79 Combining Statement of Revenues, Expenditures Transfers, and Changes in Fund Balances ..................................................... ............................... C -2 80 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual: Bonds........................................................................................................... ............................... C -3 81 Other............................................................................................................... ............................0 -4 82 CAPITAL PROJECTS FUNDS: CombiningBalance Sheet ................................................................................... ............................D -1 84 Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances (Accumulated Deficits) ................... ............................D -2 86 Schedule of Capital Projects ............................................................................... ............................D -3 88 ii 1 iii KODIAK ISLAND BOROUGH N Comprehensive Annual Financial Report For the Year Ended June 30, 1999 TABLE OF CONTENTS (continued) ENTERPRISE FUNDS: EXHIBIT PAGE CombiningBalance Sheet ........................................ . ................................................................... ...E -1 94 Combining Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings (Accumulated Deficits ) ............................. ............................ E -2 96 Combining Statement of Cash Flows ............................................................... ............................... E -3 97 Municipal Solid Waste Collection and Disposal Fund: BalanceSheets ............. ............................................................................ ............................... E4 99 Statement of Revenues, Expenses, Transfers and Changes 1 in Accumulated Deficit - Budget and Actual, ... ...... E -5 Statements of Cash Fl ows ................................................................................ ............................... E -6 100 101 Hospital Facilities Fund: BalanceSheets ................................................................................................. ............................... E -7 102 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings (Accumulated Deficits) - Budget and Actual .............. ............................... E -8 103 ' Statements of Cash Flows.... ..... 911 Services Fund: 104 BalanceSheets .................................................................... ............................... ...........................E -10 105 ' Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings (Accumulated Deficits) - Budget and Actual. ............ ............................... E -11 106 Statementsof Cash Flows .............................................................................. ............................... E -12 107 ' Kodiak Fisheries Research Center Fund: BalanceSheet ................................................................................................. ............................... E -13 108 ' Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings (Accumulated Deficits) - Budget and Actual. ........................................... E -14 109 Statementof Cash Flows ................................................................................ ............................... E -15 110 INTERNAL SERVICE FUND: Management Information Systems Fund: BalanceSheets ................................................................................................. ............................... F -1 111 ' Statement of Revenues, Expenses, Transfers and Changes in in Accumulated Deficit - Budget and Actual ................................................. ............................... F -2 112 Statementsof Cash Flows ................................................................................ ............................... F -3 113 iii KODIAK ISLAND BOROUGH TABLE PAGE ' Comprehensive Annual Financial Report For the Year Ended June 30, 1999 TABLE OF CONTENTS (continued) 127 ' General Revenues by Source - Last Ten Fiscal Years .......................................... ..............................2 128 Property Tax Levies and Collections - EXHIBIT PAGE 129 GENERAL FIXED ASSETS ACCOUNT GROUP: Property - Last Ten Fiscal Years ......................................................................... ..............................4 130 Schedules of Fixed Assets by Source .................................................................. ............................G -1 115 Schedule of General Fixed Assets by Function and Activity .............................. ............................G -2 116 .5 Schedule of Changes in General Fixed Assets by , Ten Largest Property Taxpayers ........................................................................... ..............................6 Functionand Activity ............................................... ............................... ...................... ................G -3 117 GENERAL LONG -TERM DEBT ACCOUNT GROUP: Computation of Direct and Overlapping Debt ...................................................... ..............................8 Schedulesof Long -Term Debt ............................................................................ ............................H -1 119 ADDITIONAL INFORMATION - BONDED INDEBTEDNESS: Ratio of Annual Debt Service Expenditures for General Summary of Bonded Debt Service Requirements to Maturity ............................. ............................1 -1 121 10 General Obligation School Refunding Bonds, Series 1989 ................................. ............................1 -2 122 General Obligation Bonds, 1993 Series A ........................................................... ............................I -3 123 General Obligation Bonds, 1994 Series A ........................................................... ............................1 -4 124 General Obligation Bonds, 1998 Series A ........................................................... ............................I -5 125 Asbestos Removal Loan Payable ...................................................................... ............................... I-6 126 ' STATISTICAL SECTION TABLE PAGE ' STATISTICAL TABLES: General Governmental Expenditures and Other Uses by Function - Last Ten Fiscal Years ................................................................... ..............................1 127 ' General Revenues by Source - Last Ten Fiscal Years .......................................... ..............................2 128 Property Tax Levies and Collections - LastTen Fiscal Years ......................................................................................... ..............................3 Assessed and Estimated Actual Value of Taxable 129 ' Property - Last Ten Fiscal Years ......................................................................... ..............................4 130 Property Tax Rates and Contributions to the School District Last Ten Fiscal Years ....................... ............................... ... .5 131 , Ten Largest Property Taxpayers ........................................................................... ..............................6 132 Ratio of Net General Bonded Debt - Last Ten Fiscal Years ................................. ..............................7 133 Computation of Direct and Overlapping Debt ...................................................... ..............................8 134 Computation of Legal Debt Margin ...................................................................... ..............................9 135 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures and Transfers : Last Ten Fiscal Years 10 136 , Demographic Statistics - Last Ten Fiscal Years ...... ......... ......... ......... ......... ......... ..........11 137 Property Value, Construction and Bank Deposits - LastTen Fiscal Years ........................................................................................ .............................12 138 Miscellaneous Statistical Data - LastTen Fiscal Years ........................................................................................ .............................13 140 iv I INTRODUCTORY SECTION KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1999 Data Processing Steerins Committee * Thomas Manninen Jim Nagan Perry Page Karleton Short Betty Walters David Jones Gary Stevens Fire Protection Area No. 1 Advises Board * Eileen Probasco Scott Arndt Jeff Halcomb Kevin Arndt Roy Aquirre Robert Himes, ex- officio Bay View Road Service Area Advisory Board * Fred Roberts Dawn Black Marcia Oswalt Reed Oswalt James R. Schauff Monashka Bay Road Service Area Advisory Board * Jack McFarland Jeff Hamer Dave Sundberg Corrine Estelle Ferre Emergency Services Council Carolyn Floyd Tom Manninen Bill Jones, City Manager, City of Kodiak Gary Stevens John Miller, Capt. USCG Service District No. I Advisory Board * Kevin Arndt Robert Greene Scott Arndt Ed Mahoney Jennifer Spencer Robert Casey Brian Mayberry Womens Bay Service Area Advisory Board * David Conrad Linda Estes Edward Gondek Tom Trosvig Bob Tan-ant Tom Schwantes Mike Welchek Dale L. Rice, ex- officio Kodiak Area Transit System Steering * Pat Branson Wanetta Ayers Marie Bami Tim Blott Woody Konig Steven G. Honnold Don Roberts Wayne Stevens, Assembly Rep. Linda Freed, KIB Staff Airport Advisory Committee * Stosh Anderson Charles Barber Dean Andrew Robert Himes Ruth Lovejoy Arlene Mauldin Donald Rossiter John Chya, ex -officio CDR Drew Dilkes, CG ex- officio Patti Kilpatrick, KIB staff Service Area No. 2 Commission Rebecca Bean Miller Connie Estille Ferre Norman Mullen Marcia Oswalt 1 vacancy * Indicates chair ix k ARCTIC OCEAN PT. BARROW BARROW PRUDNOE BAK KOTZEBUE t7 6 OUZINKIE `V� , ` CIRCLE Kd01AK CANADA VKARLUK ARE � NOME CHINIAK }V �IVORTON SOUND f AiR B ANK S A L AS K A a .: ANCHORAGE g KODIAK BETHEL VALDEZ o` ISLAND , KENAI � BOROUGH E SE ARD NEAU DILLINGHAM GULF OF ALASKA HIKAN BRISTOL SAY ` b KODIAK ocu ISLAND NORTH PACIFIC OCEAN I MAYOR AND ASSEMBLY MEMBERS 1 DR. GARY L. STEVENS Mayor of Kodiak Island Borough, 2001 TOM ABELL At Large, 1999 SCOTT ARNDT At Large, 2000 ROBIN HEINRICHS Deputy Mayor, At Large 2001 SHAWN (TUCK) BONNEY At Large, 1999 PATRICIA BRANSON At Large, 2001 WAYNE STEVENS At Large, 1999 GREGEORY C. SPALINGER At Large, 1999 KODIAK ISLAND BOROUGH BOROUGH OFFICIALS YEAR ENDED JUNE 30, 1999 BOROUGH ASSEMBLY Wayne Stevens `99 Patricia Branson '01 Tom Abell `02 Robin Heinrichs (Deputy Mayor) `01 Greg Spalinger `00 Scott Arndt `00 Tuck Bonney `02 BOROUGH MAYOR Gary Stevens '01 Karleton G. Short ........................................................................................... ............................... Finance Director/Treasurer Chris M. Lynch .............................................................. ............................... ....................Engineering and Facilities Director DonnaSmith .............................................................................................. ............................... ........................Borough Clerk LindaL. Freed ................................................................................... ............................... Community Development Director PatrickS. Carlson ....................................................................................................................... ............................... Assessor Pent' L. Page ......................................................................................... ............................... Director of Information Systems RobertA. Himes .................................................................................. ............................... ......................Assistant Fire Chief Charles E. "Bud" Cassidy .................................................. ............................... .......................Resource Management Officer Jamin, Ebell, Schmitt & Mason .............................. ............................... ........................Borough Attorney (Contracted Finn) Betty Walters .......................................................................................... ............................... Superintendent, School District MaryMunk ........................................................................................ ............................... ........................General Accountant MarianRoyall .......................................................................................................... ............................... Revenue Accountant BarbaraTempleton .................................................................................. ............................... ..................... Purchasing Agent Vii KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1999 School Board * Norm Wooten Alice Knowles Jack McFarland Jeff Stephan Pat Jacobson Dan Canavan, USCG Rep. Greg Spalinger — Assembly Rep. Tuck Bonney — Assembly Rep. Scott Arndt — Assembly Rep. Sheila Roberts - Staff Clara Fulp, Student Rep. Hospital Advisory Board * Wayne Stevens — Assembly Rep. Gil Bane Mark K. Buckley Linda Duthie Michael Machulsky Mary A. Monroe Gretchen Saupe Phil Cline, Administrator, ex- officio Robyn Holloway, KIH Staff Walby Jensen, Chief of Staff Mental Health Center Advisory Board * Jody Burcham Thia Falcone David Davis Barbara Lynn Furin Steven G. Honnold Cecil Ranney Roger Nagarkar Tuck Bonney, Assembly Rep. Lt. Tish Palmer, CG Rep, ex- officio Robin Gardner, MHC Staff Karen Perkins, KAMI Rep., ex- officio Welby Jensen, MD, Providence Rep, ex- officio Planning _and Zoning Commission * Donna Bell Marty Shuravloff Robert Himes Robbie Scheidler Clarence W. Selig Walter Stewart Darlene Turner Woodland Acres Street Liahting Service Area Advisory Board Phillip Cline * Bob Hatcher, Chair Kevin Arndt Citizen Board of Eoualization Jim Carmichael * Karenia Hackett, Chair Tim Hurley Cheryl McNeil, Alternate Pat Carlson, KIB staff Donna Smith, KIB staff Parks and Recreation Committee * David Odell S. Forrest Blau Susan Byersdorfer Steven Honnold Walter Stewart, P &Z Rep. 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 Tom Abell, Assembly Rep. Building Code Board of Appeals/ (Architectural Review Board) * Gerald Cloudy Gregg Hacker Jay Johnston Dale Soughers Tom Templeton Robin Heinrichs, Assembly Rep. Bob Tucker, KIBSD Rep. Jack McFarland, School Board Rep. Chris Lynch, KIB Rep. Personnel Advisory Board Warren Russell Christine Jamin Chris Nielsen Linda Moore, KIB staff viii 1 1 Certificate of � Achievement for Excellence � in Financial 1 Reporting ' Presented to 1 Kodiak Island Borough, Alaska For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1998 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. President Y7�(7 G Executive Director xi KODIAK ISLAND BOROUGH ORGANIZATIONAL CHART FISCAL YEAR 1999 fLECIORATE BOROUGH MAYOR t— — --- — — --- — j BOROUGH ASSEMBLY 1g: BOROUGH MANAGER ADMINISTRATNE RESOURCE MANAGEMENT ASSISTANT OFFICER BAYSIOf ASSISTANT HUMAN RESOURCE5 FIRE CHIEF ASSISTANT ARTS COUNCIL INTERIM DIRECTOR (CONTRACT) Ir utVCl.urucrvl ENGINEERING /1ACILITIE$ DIRECTOR piRECTOR KFRC MANTENANCE ASSOCUTE PLANNER/ MAINTENANCE ENGINEER WORKER LONG RANGE PLANMNG KFRC =.-ICT, RECEPTIONIST ASSISTANT PLANNER ENVIRONMENTAL =17 SPECIALIST DRAfi1NG 1ECNN)CNiN SOLID WASTE BALER/ SECRETARY iff LANDFILL SUPERVISOR BALER OPERATOR II BALER OPERATOR I BALER OPERATOR I BALER OPERATOR 1 ASSESSOR PROPERTY APPRAISER ASSESSMENT CLERK 11 ASSESSMENT CLERK I BOROUGH ATTORNEY 1 I BOROUGH CLERK FINANCE DIRECTOR GENERAL ACCOUNTANT ACCOUNTING TECHNIC(A /PAYROLL ACCOUNTING TECHNICIAI /ACCOUNTS PAYABLE LOCAL ADMINISTRATOR (DAY CARE ASSISTANCE PROGRAM) REVENUE ACCOUNTANT CASHER SECRETARY 111 >r ISLAND BOROUGH DEPUTY CLERK ASSISTANT CLERK DIRECTOR OF INFORMATION SYSTEMS SENIOR SYSTEMS ANALYST OPERATIONS SUPERVISOR SYSTEM OPERATOR I LAN ADMINISTRATOR PC TECHNICIAN I 1 Kodiak Island Borough Finance Department 710 Mill Bay Road _►:� Kodiak, Alaska 99615 " Phone (907) 486 -9323 Fax (907) 486 -9392 October 31, 1999 To the Honorable Mayor and Members of the Assembly Kodiak Island Borough Kodiak, Alaska The Comprehensive Annual Financial Report (CAFR) of the Kodiak Island Borough (Borough), Kodiak, Alaska, for the fiscal year ended June 30, 1999, is submitted herewith. This report was prepared by the Borough finance department. Responsibility for the accuracy, completeness, and fairness of presentation, including all disclosures, rests with the Borough. We believe the data, as presented, is accurate in all material respects, and 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. All disclosures necessary to enable the reader to gain maximum understanding of the Borough's financial affairs have been included. The CAFR is comprised of three main sections: introductory, financial, and statistical. The introductory section includes background on the Borough, the fund accounting concepts used by the Borough, and selected financial presentations. The financial section contains 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 financial and general information generally presented on a ten -year comparative basis. I 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, and one third is located on the Alaska Peninsula, across the Shelikof Strait from ' Kodiak Island. 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.Mayor/Manager 1 form of government governs the Borough. The Borough Assembly is composed of seven members who are elected at- large. xiii 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) are shown in the Table of Contents of this report. ECONOMIC CONDITION AND OUTLOOK Economic Sectors The major economic sectors of the Borough are commercial fishing, logging, and tourism. With a prime location in the Gulf of Alaska and the North Pacific Ocean, the Borough is adjacent to some of the richest fishing grounds in the world. Kodiak was ranked third in 1998 among commercial fishing ports in the United States in terms of value of seafood landed. The major sector of the Kodiak economy is, by far, commercial fishing, accounting for eighty - nine percent of the severance tax revenue collected and more than half of the jobs in Kodiak. Kodiak is Alaska's largest fishing port; homeport to more than 700 commercial fishing vessels. According to the Alaska Department of Fish and Game, 388,676,685 pounds of fish were landed at the Port of Kodiak in 1998 with an exvessel value of $79,255,662. In 1997 266,962,938 pounds of fish were landed and valued at $82,885,874. Plum Der of pounds caueht Exvessel value 1998 1997 Percent *Ranking by Percent *Ranking by Species Pounds of total $ per pound Species Pounds of total $ er p ound pollock $ 165,771,470 43% 17 pollock $ 83,331,663 31% 16 salmon 105,574,455 27% 9 pacific cod 73,139,944 27% 11 pacific cod 71,974,284 19% 11 salmon 57,828,811 22% 9 halibut 9,088,000 2% 6 flatfish 16,636,317 6% 12 other 36,268,476 9% other 36,026,203 14% Total $ 388,676,685 100% Total $ 266,962,938 100% Exvessel value * 1998 Fish & Game table had 19 species, while 1997 had 18 species. xiv 1998 1997 Percent *Ranking by Percent *Ranking by Species Value of total $ per pound Species Value of total $ per pound salmon $ 29,809,626 38% 9 halibut $ 20,975,802 25% 5 pacific cod 13,675,114 17% 11 salmon 18,798,037 23% 9 pollock 11,604,003 15% 17 pacific cod 15,546,138 19% 11 halibut 9,996,800 13% 6 pollock 8,139,083 10% 16 other 14,170,119 17% other 19,426,814 23% Total $ 79,255,662 100% Total $ 82,885,874 100 0 /0 * 1998 Fish & Game table had 19 species, while 1997 had 18 species. xiv J The severance tax revenue collected for timber in fiscal year 1999 was $95,690. The dramatic ' decline in revenue from fiscal year 1998's collection of $179,401 is directly related to the economy in Asia and Japan, as these two markets are the primary customers of Alaskan timber. The domestic market is not an option because of U.S. shipping laws. To sell to the domestic market, American shipping companies must be used. This would increase the cost of Alaskan timber, making the domestic market unprofitable. Kodiak's tourism industry is based on its natural resources making it a seasonal destination. Seventy -six percent of the island's visitor population travels to Kodiak during the summer months. Tourists come to enjoy the scenic beauty and variety of activities the island has to offer including wildlife viewing, hunting, fishing, hiking, and camping. Kodiak's rich history, culture and abundant wildlife entice visitors from around the world. According to the Alaska Visitor Statistics Program, visitors to Kodiak tend to stay longer than the average visitor to the state, and are significantly more likely to be repeat visitors. Kodiak 1 visitors also tend to spend more than twice as much as the average visitor to other regions in Alaska. Visitors to the Kodiak Island Borough generated $39,609 in transient accommodations tax revenue. Employment ' The labor force in Kodiak is dominated by the fishing industry. Of the top ten employers in Kodiak for 1998, six are related to the fishing industry. Approximately 3,200 people, or 31 percent of the local labor force, are employed in the fish harvesting area. Manufacturing, primarily seafood processing, employs 2,350 people, or 19 percent. Their combined payroll is over $53 million. The U. S. Coast Guard and other government entities constitute 24 percent of the labor force. The retail and wholesale sector employ 8 percent, the service sector 11 percent, and the remaining 7 percent are in construction, transportation, communication, utilities, financial services, insurance and real estate. ' Employment varies throughout the year with July, August, and September being the peak months due to the increased activity in the canneries, and declines in November and December when fishing quotas are reached. The unemployment rate as of June 30, 1999 was 4.8 percent ' compared to 3.2 percent in 1998 and 7.7 percent in 1997. Throughout fiscal year 1999, the unemployment rate has fluctuated from 3.4 percent to 13.3 percent, with an average of 6.8 ' percent. Population The estimated population of the Kodiak Island Borough for fiscal year 1999 is 13,848. The Borough ranks sixth in population when compared to other boroughs and unified municipalities throughout the state. The City of Kodiak is the seventh largest city in the state of Alaska. Kodiak is also home to the United States Coast Guard's largest facility. Among the various ' Coast Guard operating and support commands, there are approximately 1,100 military and civilian personnel and 1,600 military dependents. xv MAJOR INITIATIVES In preparing the fiscal year 1999 budget, the Borough identified several major projects to be addressed during the year. All major projects are listed in Exhibit D -3 of the CAFR. The two most significant projects in fiscal year 1999 were the completion of the Kodiak Fisheries Research Center and continuance of the landfill vertical expansion. The landfill project includes final contour configurations of the site, drainage control, slope stability, and allowances for future lateral expansion phases. In addition, work will include leachate control and treatment, construction of new wastewater storage facilities, closure of a portion of the existing landfill, and mining of future lateral expansion phases to provide material for proposed work. Capital projects either started or expanded in fiscal year 1999 totaled $3,369,395. 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 (KIBSD), a component unit of the Kodiak Island Borough. In order to provide adequate health care, the Borough leased the Kodiak Island Hospital and Care Center to the Sisters of Providence in Washington, d/b /a Providence Health System in Alaska (PHSA). PHSA also assumed operational responsibility of the Mental Health Center from the Borough on January 2, 1998. The Borough provides for solid waste collection and disposal by contracting collection services through an outside source while operating the landfill. The Borough has four road service areas, three fire protection areas, and one street light service area. The Borough contracts with the City of Kodiak for building inspection services for building outside the city limits. In fiscal year 1999, 192 building permits were issued with a value of $15,007,192. The number of permits increased by four over 1998, while the value decreased by $9,773,050. The reduction in value is attributed to Wal -Mart and the Kodiak Fisheries Research Center, which were built in 1998. 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. xvi Internal Controls The Borough's accounting system depends upon a strong system of internal controls. The Borough finance department focuses on all aspects of internal control, and strives 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 annually, and documented to reflect any procedural changes that are deemed necessary. Cross training and segregation of duties are valued and encouraged in the internal control structure. Budgetary Controls The Borough uses a modified accrual basis of accounting for governmental funds, and an accrual ' basis for enterprise and internal service funds. Under the modified accrual basis of accounting system, 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 midway 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. GENERAL GOVERNMENT FUNCTIONS The following charts summarize General Fund revenues for the fiscal year ended June 30, 1990 compared to the fiscal year ended June 30, 1999. This chart includes General Fund revenues only' Fiscal Year 1990 Fiscal Year 1999 Lio 4operty Taxes e7% xvii Licenses, Permits, i and Other 3% Intergovernmental 29% Property Taxes 56% Irnergovemn 20% Severance Taxes 10% Investment Insane Investment Income i The following schedule summarizes changes from the prior year for General Fund revenues: Increase (decrease) Revenue Sources: Property Taxes Severance Taxes Intergovernmental Licenses, Permits, Fees and Other Investment Income Total 1999 1998 $ 6,688,097 $ 6,657,899 1,006,290 931,695 2,055,803 2,739,075 Amount Percent $ 30,198 0.5 74,595 8.0 (683,272) (24.9) 150,809 195,425 (44,616) 238,515 389,252 (150,737) $10,139,514 $ 10,913,346 $ (773,832) * This percentage is the change in overall totals, not the column. (22.8) (38.7) (7.1)' Property tax is the largest source of revenue for the General Fund of the Kodiak Island Borough. The minor increase in property tax is solely based on appraised value; there was no mill rate increase for fiscal year 1999. Severance tax revenues increased from $931,695 in fiscal year 1998 to $1,006,290 in fiscal year 1999. The tax related to the fishing industry increased by $157,385, while the severance tax on timber decreased by $83,710, a decrease of 47 percent. This decrease is attributed to diminishing demand from the Asian markets. The decrease in intergovernmental revenue is the result of reduced payments from the federal government for the National Wildlife Refuge. In fiscal year 1999 the Borough received $177,899, in 1998 it received $775,250. The decrease in licenses, permits, fees and other revenues is attributed to the receipt of $51,000 in fiscal year 1998 for oil spill receipts. This receipt is not an ordinary one and, consequently, we did not receive a similar payment for fiscal year 1999. The Borough had less investment income in fiscal year 1999 due to a decrease in available cash, which was $777,912 less than the previous year. The following chart compares General Fund expenditures and operating transfers by function for the years ending June 30, 1990, and June 30, 1999: Y.., F d.d19M Y— EM..,OOY Omw Ed"1W 43% 124 neM O.v.rmrrl 774 Sdtl7 11 .U.. xviii LM —ti N* k S." 2% HaM.M 9nilMi.n 9% u L Changes in expenditures for major General Fund functions of the Borough over the preceding E year are shown in the following tabulation: General Government Public Safety Health and Sanitation Education Culture and Recreation Community Development Total * This percentage is the change in overall totals, not the column. ' The decrease in health and sanitation is attributed to mental health services, which had a decrease of $240,570. As of January 2, 1998 the Borough no longer operates the Mental Health facility; Providence Health System of Alaska has assumed responsibility for providing these services. Two other factors contributing to the decrease in health and sanitation were an operating transfer to the Buildings and Grounds Fund, and in contributions to non - profits. As for the decrease in culture and recreation, the Borough had an operating transfer of $40,460 to pay for Borough parks. This expenditure was not budgeted for fiscal year 1999. It is the goal of the Kodiak Island Borough to maintain a General Fund balance of at least 1 to 2 million dollars. The fund balance as of June 30, 1999 was $783,459. This is $785,480 less than the June 30, 1998 balance of $1,569,205. 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 3,500,00 3,000,00 2,500,00 2,000,00 1,500,00 1,000,00 500,00 xix 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Increase (decrease) 1999 1998 Amount Percent $ 2,104,920 $ 2,179,930 $ (75,010) (3.4) 179,746 175,522 4,224 2.4 1,002,058 1,282,827 (280,769) (21.9) 7,044,970 6,517,331 527,639 8.1 208,930 241,390 (32,460) (13.4) 417,268 424,787 (7,519) (1.8) $10,957,892 $10,821,787 $ 136,105 1.3 * This percentage is the change in overall totals, not the column. ' The decrease in health and sanitation is attributed to mental health services, which had a decrease of $240,570. As of January 2, 1998 the Borough no longer operates the Mental Health facility; Providence Health System of Alaska has assumed responsibility for providing these services. Two other factors contributing to the decrease in health and sanitation were an operating transfer to the Buildings and Grounds Fund, and in contributions to non - profits. As for the decrease in culture and recreation, the Borough had an operating transfer of $40,460 to pay for Borough parks. This expenditure was not budgeted for fiscal year 1999. It is the goal of the Kodiak Island Borough to maintain a General Fund balance of at least 1 to 2 million dollars. The fund balance as of June 30, 1999 was $783,459. This is $785,480 less than the June 30, 1998 balance of $1,569,205. 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 3,500,00 3,000,00 2,500,00 2,000,00 1,500,00 1,000,00 500,00 xix 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 1 PROPRIETARY OPERATIONS In fiscal year 1999, the Municipal Solid Waste Fund had an operating income of $388,169. This increase follows an operating loss of $50,435 for fiscal year 1998. The major contributor to the operating income was the decrease in the closure /postclosure expenses of $488,243. There was an operating transfer of $418,869 to capital projects to pay for the expansion of the landfill. The overall result to retained earnings was an increase of $23,640. The budget for fiscal year 1999 showed an expected loss of $182,020. On April 22, 1997 the Kodiak Island Borough leased the Kodiak Island Hospital and Care Center to Providence Health System in Alaska. The Hospital Facilities Fund accounts for the bonded debt related to the construction of the hospital addition. The main source of revenue is the monthly lease payment of $60,000. The hospital also receives a portion of state revenue sharing. Their portion for fiscal year 1998 was $67,330. Their lease stipulates that profits will be shared with the Borough on an equal basis, with a maximum amount in any one year of $600,000, and that PHSA will absorb all losses. In FY 99 the Borough received $420,613 for their portion of this gain on operations. The 911 Service Fund was established to collect money in order to pay for installation and maintenance on an automatic call out system for emergency services. The Borough receives seventy-five cents per phone line that is billed within the vicinity of the City of Kodiak. The billing is done by the phone company and then remitted to us. We, in turn, send the money to the City of Kodiak for the 911 - service equipment that has been installed at the police station. This system allows for location of the caller, even if the caller is unable to speak. The Kodiak Fisheries Research Center (KFRC) became operational this fiscal year. The Center is home to the National Oceanic and Atmospheric Administration, (NOAA), the National Park Service, Alaska Department of Fish and Game, and the University of Alaska — Fairbanks. The source of income for KFRC is lease payments. The major contributor in rent is NOAA. The center was developed as a multi- agency research facility committed to the preservation of the North Pacific marine ecosystem and resources. The Borough maintains the building, pays all expenses, and manages the Interpretive Center in the building as a public display area. Kodiak Island Borough School District The Kodiak Island Borough School District ( KIBSD) has been identified as a component unit of the Kodiak Island Borough. The school district serves 2,800 students in fifteen schools around the Kodiak archipelago. The District is comprised of 6,800 square miles (slightly larger than the state of Connecticut), with eight schools accessible only by air and water. There are four elementary schools, one middle school, and a high school. Nine village schools serve communities around Kodiak Island and nearby Afognak Island. The School District Support Program encompasses the transfer of the state - required local funding to the KIBSD for operations. The program includes the purchase of liability insurance, the cost of the annual audit, and management information systems support. Contributions to the KIBSD as Mill Rate Equivalents were 9.45 in fiscal year 1999. This was approximately $6,492,876 for fiscal year 1999. xx 1 u t I� 1 F FIDUCIARY OPERATIONS The Kodiak Island Borough handles all fiduciary activity regarding the collection of Public Employees Retirement System (PERS) payments, property tax collected on behalf of the City, and payroll taxes, with the same care and due diligence that we exercise with any of our funds. All monies due are withheld, collected, accounted for, and remitted promptly. Periodically, the State of Alaska informs each participating entity of 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 remitted monthly for the amount collected the previous month. All other fiduciary collection activity (e.g., 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, School Refunding, 1989 $ 2,235,000 General Obligation, 1993 6,055,000 General Obligation, 1994 1,030,000 General Obligation, Refunding, 1998 9,590,000 State of Alaska, ADEC Loans 104,947 Environmental Protection Agency Loan 533,451 Total $ 19,548,398 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 an eight million - dollar revenue bond authorized but not issued. Currently it is shown as an interfund receivable /payable between the Kodiak Fisheries Research Center and the Facilities Fund. xxi General Obligation, School Refunding, 1989 General Obligation, 1993 General Obligation, 1994 General Obligation, Refunding, 1998 Moody's Investors Standard Service and Poors Fitch's Aaa AAA Aaa AAA Aaa AAA AAA AAA As of June 30, 1999, net per capita bonded debt is $1,284. For comparison purposes, the following is the net per capita bonded debt for the past ten years: General Bonded Debt Per Capita Last ten fiscal years $1,800 1,560 $1,600 1,515 1,502 1,393 1,381 $1,400 1,284 $1,200 $1,000 $800 554 $600 $400 410 363 298 $200 $0 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 proper monitoring procedures are utilized for timely receipt and deposit of all funds. INVESTMENT POLICIES The Borough Finance Director is the central treasurer for all Borough funds. This includes both the Borough and School District. 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 may 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 xxii r] selection of banks and brokers with additional insurance. A local servicing bank "sweeps" the total balances to another account on a daily basis. At this time $4,030,000 of Kodiak Island Borough AMBAC insured bonds collateralize this account. A third -parry bank (State Street Bank) holds this collateral. All new investments are purchased on a delivery versus payment system. 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. At this time, management believes this is the safest way of holding our investments. ' The Borough's investment policy is far more restrictive than that of man other governments. y g rnments. 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. Furthermore, a third -party bank holds all investments and collateral. The investments of the Borough over the past year have fluctuated between $6 and $14 million. Interest rates for the fiscal year started at 5.25 percent to 5.83 percent in early July 1998. At year- ' end, investments were earning from 4.68 percent to 5.51 percent for an average yield of 5.16 percent. FY 99 ended with investment earnings for all funds in the amount of $1,415,086. 1 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. Currently a Safety Committee 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, bloodbome pathogens, sexual harassment awareness, accident prevention, ergonomics, and evaluation of work environments to prevent cumulative trauma. The Borough offers 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. INDEPENDENT AUDIT The Borough Code requires an annual audit be made of the books of account, financial records, and transactions of all administrative departments of the Borough. We are in compliance with this requirement, and the auditor's opinion has been included in this report. xxiii Alaska Statutes require single audits and define these requirements in 2 AAC 45.010. The Borough is also in compliance 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 CAFR for the fiscal year ended June 30, 1998. 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 CAFR, 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 eleven consecutive years (fiscal years ended 1988 - 1998). Our current report continues to conform to the Certificate of Achievement Program requirements, and we will be submitting it again to the Government Finance Officers Association for review. GOVERNMENT FINANCE OFFICERS ASSOCIATION DISTINGUISHED BUDGET PRESENTATION AWARD The Government Finance Officers Association of the United States and Canada (GFOA) has presented a Distinguished Budget Presentation Award to the Kodiak Island Borough for its annual budget for the last nine consecutive years (fiscal years beginning July 1, 1990 through July 1, 1998). The Borough has submitted its annual budget for the fiscal year beginning July 1, 1999, and believes that it, too, will also meet the necessary 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. xxry Acknowledgments I wish to express my sincere 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 xxv FINANCIAL SECTION 1 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. n 1 1 INDEPENDENT AUDITORS' REPORT I The Honorable Mayor and Members of the Assembly Kodiak Island Borough Kodiak, Alaska s 1 L_� 1 1 t Telephone: (907) 272 -8462 Facsimile: (907) 264 -3181 We have audited the accompanying general purpose financial statements of Kodiak Island Borough (the Borough), Alaska, as of June 30, 1999, 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 the standards applicable to financial audits contained in 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. 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, 1999, 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. The year 2000 supplementary information on page 41 is not a required part of the basic financial statements, but is supplementary information required by the Governmental Accounting Standards Board, and we did not audit and do not express an opinion on such information. Further, we were unable to apply to the information certain procedures prescribed by professional standards because of the unprecedented nature of the year 2000 issue and its effects, and the fact that authoritative measurement criteria regarding the status of remediation efforts have not been established. In addition, we do not provide assurance that the Kodiak Island Borough is or will become Year -2000 compliant, that Kodiak Island Borough's year 2000 remediation efforts will be successful in whole or in part, or that parties with which the Kodiak Island Borough does business are or will become Year -2000 compliant. Deloit buche ' Tohmatsu Deloitte & Touche Deloitte & Touche LLP Suite 1500 550 West 7th Avenue Anchorage, Alaska 99501 INDEPENDENT AUDITORS' REPORT I The Honorable Mayor and Members of the Assembly Kodiak Island Borough Kodiak, Alaska s 1 L_� 1 1 t Telephone: (907) 272 -8462 Facsimile: (907) 264 -3181 We have audited the accompanying general purpose financial statements of Kodiak Island Borough (the Borough), Alaska, as of June 30, 1999, 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 the standards applicable to financial audits contained in 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. 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, 1999, 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. The year 2000 supplementary information on page 41 is not a required part of the basic financial statements, but is supplementary information required by the Governmental Accounting Standards Board, and we did not audit and do not express an opinion on such information. Further, we were unable to apply to the information certain procedures prescribed by professional standards because of the unprecedented nature of the year 2000 issue and its effects, and the fact that authoritative measurement criteria regarding the status of remediation efforts have not been established. In addition, we do not provide assurance that the Kodiak Island Borough is or will become Year -2000 compliant, that Kodiak Island Borough's year 2000 remediation efforts will be successful in whole or in part, or that parties with which the Kodiak Island Borough does business are or will become Year -2000 compliant. Deloit buche ' Tohmatsu 1 Our audit was conducted for the purpose of forming an opinion o n 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 127 through 141 are presented for purposes of additional analysis and is not a 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 1, 1999, 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. That report is an integral part of an audit performed in accordance with Government ' Auditing Standards and should be read in conjunction with this report in considering the results of our audit. '-D J0;JtA , � 4-L 10 October 1, 1999 1 KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT JUNE 30, 1999 (with comparative totals for 1998) Proprietary Governmental Fund Types Fund Types Special Debt Capital General Revenue Service Projects Enterprise ASSETS AND OTHER DEBITS ASSETS: Equity in central treasury $ 117,779 $ 200 $ 244 $ - $ 100 Temporary investments 4,250,991 5,143,146 - - 2,078,749 Other cash and cash equivalents - - Receivables: Accounts and other receivables, net 437,772 77,332 - - 244,318 State of Alaska 40,550 174,188 16,506 306,427 - Federal Government - - - - " Property taxes, net of allowance of $15,828 203,119 Land sales contracts, due within one year - 71,795 - - - Due from other funds 1,401,459 1,469,382 455,967 300,822 143,243 Due from primary government Inventories - - - - 277,005 Prepaid expenses/expenditures - - - - Long -term interfund advances - 7,805,000 - - - Restricted assets: Temporary investments - - - „ With fiscal agent - - - - 218,013 Land sales contracts receivable, due after one year - 69,188 - - - Fixed assets, net of accumulated depreciation where applicable - - - - 43,969,735 Construction work -in- progress - - - - 4,563,935 OTHER DEBITS: Amount to be provided for claims and judgements ' - - Amount available in debt service fund Amount to be provided for retirement of general long -term debt TOTAL $ 6,451,670 $ 14,810,231 $ 472,717 $ 607,249 $ 51,495,098 The accompanying notes are an integral part of these combined financial statements. 4 1 EXHIBIT 1 Total Proprietary primary Component Totals Fund Types Account Groups government unit reporting entity Internal General General long- (memorandum School (memorandum only) Service fixed assets term debt only) District 1999 1998 $ $ $ $ 118,323 $ $ 118,323 $ 3,480,393 11,472,886 11,472,886 8,327,814 ' - - 320,593 320,593 364,226 471 - - 759,893 118,679 878,572 606,645 - - - 537,671 600,517 1,138,188 3,141,814 ' - - - 39,383 39,383 11,295 - - - 203,119 - 203,119 338,027 - 71,795 - 71,795 81,636 113,435 3,884,308 581,468 4,465,776 2,565,451 - - - - 2,953,847 2,953,847 1,669,638 - 277,005 244,140 521,145 469,124 8,424 8,424 8,424 24,647 - - - 7,805,000 - 7,805,000 8,000,000 ' - - - 139,520 - - - 218,013 - 218,013 208,203 - - 69,188 69,188 ' 196,396 315,602 101,020,915 145,306,252 3,916,049 149,222,301 106,679,522 4,563,935 4,563,935 40,252,108 ' - - 86,500 86,500 156,000 - - 462,300 462,300 - 462,300 594,663 - - 18,789,371 18,789,371 177,424 18,966,795 20,251,291 $ 437,932 $ 101,020,915 $ 19,251,671 $ 194,547,483 $ 9,038,600 $ 203,586,083 $ 197,558,413 ' (continued) I 5 I ;. KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT JUNE 30, 1999 (with comparative totals for 1998) LIABILITIES, FUND EQUITIES AND OTHER CREDITS LIABILITIES: Accounts payable Cash overdraft Retainages payable Accrued compensation, annual leave, payroll taxes and related benefits Other accrued liabilities Customer deposits Deferred revenues Claims and judgements Due to City of Kodiak Due to component units Due to other funds Due to student organizations Current portion of note payable Current portion of capital lease obligations Accrual for landfill closure and postclosure costs Note payable Capital lease obligations Long -term interfund borrowings General obligation bonds payable Environmental Protection Agency loan Alaska Dept. of Environmental Conservation loans Total liabilities FUND EQUITIES AND OTHER CREDITS: Contributions in aid of construction, net Investment in general fixed assets Contributed capital Retained earnings (deficit) Fund balances: Reserved: Proprietary Governmental Fund Types Fund Types Special Debt Capital General Revenue Service Projects Enterprise $ 140,675 $ 267,929 $ 10,417 $ 35,631 $ 241,835 340,427 - - - - 113,826 - 88,360 414 - - 25,139 639,101 5,026 - - - - - - 600 - - - 7,805,000 - 142,338 - - 60,000 Subsequentyearexpenditures - 8,280 221,230 - - 2,953,847 - - - - (368,060) 2,131,596 1,017,612 - 186,751 548,349 462,300 271,041 36,990,753 - 556,625 14,810,231 $ 472,717 $ 607,249 - - 376,984 financial _ _ - 1,939,400 The accompanying notes are an integral part of these combined statements. - - 2,310,230 - - 640,783 - - 7,805,000 10,417 336,208 14,504,345 1,428,893 5,668,211 32,160,576 5,382,203 (552,026) Encumbrances - - - 639,101 - Fuel inventory - - - - _ Long -term interfund borrowings - 7,805,000 - - - Subsequentyearexpenditures - - 221,230 - - Unreserved 783,459 5,576,338 241,070 (368,060) - Total fund equities and other credits 783,459 13,381,338 462,300 271,041 36,990,753 TOTAL $ 6,451,670 $ 14,810,231 $ 472,717 $ 607,249 $ 51,495,098 financial The accompanying notes are an integral part of these combined statements. 6 1 1 1 n. F1 i EXHIBIT 1, continued Total Proprietary primary Component Totals Fund Types Account Groups government unit reporting entity Internal General General long- (memorandum School (memorandum only) Service fixed assets term debt only) District 1999 1998 $ 8,260 $ - $ - $ 704,747 $ 214,011 $ 918,758 $ 2,603,841 ' - - 5,382,203 - 5,382,203 340,427 (227,598) - - (779,624) - 340,427 - - - - 221,230 700,874 113,826 1,092,346 113,826 790,350 39,888 - 122,141 275,942 5,026 2,508,348 2,784,290 5,026 2,933,137 27,066 $ 437,932 $ 101,020,915 $ 19,251,671 $ 194,547,483 $ 9,038,600 $ 600 $ 197,558,413 600 300 - - - 202,338 110,036 312,374 403,203 - 125,500 125,500 243,000 8,280 8,280 62,907 - - - 2,953,847 - 2,953,847 1,669,638 3,884,308 581,468 4,465,776 2,565,451 251,097 251,097 200,656 - - - 556,625 - 556,625 523,349 i 376,984 376,984 230,973 1,939,400 1,939,400 2,200,131 2,310,230 - 2,310,230 2,450,303 - - - - - 640,783 7,805,000 - 640,783 7,805,000 1,154,520 8,000,000 18,910,000 18,910,000 18,910,000 20,020,000 - - 114,583 114,583 - 114,583 135,415 - 104,947 104,947 - 104,947 99,698 48,148 19,251,671 41,247,893 3,790,460 45,038,353 46,313,938 617,382 - - 32,777,958 - 32,777,958 2,302,319 - 101,020,915 - 101,020,915 3,916,049 104,936,964 128,215,486 ' - - 5,382,203 - 5,382,203 5,147,927 (227,598) - - (779,624) - (779,624) (2,090,017) - - - 639,101 188,881 827,982 5,330,637 ' - - - 185,783 185,783 153,006 - - - 7,805,000 - 7,805,000 - - - - 221,230 700,874 922,104 1,092,346 - - - 6,232,807 256,553 6,489,360 11,092,771 389,784 101,020,915 - 153,299,590 5,248,140 158,547,730 151,244,475 $ 437,932 $ 101,020,915 $ 19,251,671 $ 194,547,483 $ 9,038,600 $ 203,586,083 $ 197,558,413 7 L 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, 1999 (with comparative totals for 1998) Special Debt General Revenue Service REVENUES: Property taxes $ 6,688,097 $ 483,809 $ - Intergovernmental: State sources 1,440,759 737,541 Federal sources 615,044 981 - Land sale proceeds - 4,158,858 - Severance taxes 1,006,290 - - Licenses, permits, fees and other local revenues 150,809 313,790 - Investments and property 238,515 1,039,304 1,834 In -kind services - - - Total revenues 10,139,514 6,734,283 1,834 EXPENDITURES: Current: Borough assembly 136,417 - - Borough mayor 254,593 - - Borough clerk 287,720 - - Borough attorney 155,800 - - Finance department 562,370 - - Assessing department 318,896 - - Borough engineering & facilities department - - - Community development department 417,268 74,686 - Building official 92,273 - - Economic development 72,225 - - General and administration 224,626 1,453,131 - Emergency preparedness 2,384 - - School district support 731,980 - - Health and sanitation department 401,680 747,026 - Education, culture and recreation 196,300 - - Capital outlay: Schools - - Service district maintenance 303,797 - General - - - Debt service: Principal - - 1,915,833 Interest - - 852,040 Fiscal agent fees - - 1,612 Total expenditures 3,854,532 2,578,640 2,769,485 Excess (deficiency) of revenue over (under) expenditures 6,284,982 4,155,643 (2,767,651) OTHER FINANCING SOURCES (USES): Operating transfers in from component unit - - 1,650,598 Operating transfers in from other funds 32,632 307,708 1,025,260 Operating transfers in from primary government - - - Operating transfers out to component unit (5,655,840) - - Operating transfers out to other funds (1,447,520) (476,990) (40,570) Operating transfers out to primary government - - - Proceeds from issuance of long -term debt - - Net other financing sources (uses) (7,070,728) (169,282) 2,635,288 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (785,746) 3,986,361 (132,363) FUND BALANCES, at beginning of year 1,569,205 9,394,977 594,663 Residual equity transfers out - - - Adjustments to reserve for fuel inventory - - FUND BALANCES, at end of year $ 783,459 $ 13,381,338 $ 462,300 The accompanying notes are an integral part of these combined fin 8 cial statements. EXHIBIT 2 Total Component Totals primary unit reporting entity Capital government School (memorandum only) Projects (memorandum only) District 1999 1998 $ - $ 7,171,906 $ - $ 7,171,906 $ 7,130,848 787,028 2,965,328 16,732,270 19,697,598 23,579,702 296,494 912,519 3,328,831 4,241,350 7,822,002 4,158,858 1,006,290 4,158,858 1,006,290 4,148,612 931,695 464,599 412,238 876,837 1,488,365 135,433 1,415,086 - 1,415,086 1,123,501 10,800 10,800 842,070 852,870 795,622 1,229,755 18,105,386 21,315,409 39,420,795 47,020,347 136,417 136,417 129,212 254,593 254,593 199,994 - 287,720 287,720 282,769 - 155,800 - 155,800 191,017 562,370 562,370 606,413 318,896 318,896 295,230 _ - - - 86 - 491,954 - 491,954 485,182 92,273 98,989 _ 9 2,273 72,225 _ 72,225 68,251 - 1,677,757 - 1,677,757 1,737,800 - 2,384 - 2,384 2,366 731,980 25,927,030 26,659,010 25,366,999 1,148,706 1,148,706 1,834,658 - 196,300 - 196,300 178,300 963,893 963,893 - 963,893 668,790 303,797 303,797 277,879 4,166,635 4,166,635 - 4,166,635 7,768,730 1,915,833 1,915,833 1,660,833 852,040 852,040 1,139,287 - 1,612 - 1,612 2,079 5,130,528 14,333,185 25,927,030 40,260,215 42,994,864 (3,900,773) 3,772,201 (4,611,621) (839,420) 4,025,483 - 1,650,598 - 1,650,598 1,651,332 1,206,742 2,572,342 2,572,342 3,934,388 5,655,840 5,655,840 4,864,000 (5,655,840) (5,655,840) (4,864,000) (974,393) (2,939,473) - (2,939,473) (4,814,388) - - (1,650,598) (1,650,598) (1,651,332) L 5 ,249 5,249 5,249 237,598 (4,367,124) 4,005.242 (361,882) (880,000) (3,663,175) (594,923) (606,379) (1,201,302) 3,145,483 4,168,492 15,727,337 1,941,423 17,668,760 14,560,448 (234,276) (234,276) - (234,276) - - - (2,953) (2,953) (37,171) $ 271,041 $ 14,898,138 $ 1,332,091 $ 16,230,229 $ 17,668,760 I A 9 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL FUND, SPECIAL REVENUE FUND AND DEBT SERVICE FUND YEAR ENDED JUNE 30, 1999 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 Debt service: Principal Interest Fiscal agent fees 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 $ 6,781,050 $ 6,688,097 $ (92,953) 1 1,430,490 1,440,759 10,269 627,899 615,044 (12,855) 917,000 1,006,290 89,290 124,650 150,809 26,159 251,833 238,515 (13,318) 10,132,922 10,139,514 6,592 131,000 232,200 288,570 140,000 587,200 319,200 443,590 94,670 77,000 274,730 5,500 731,330 404,060 213,800 136,417 254,593 287,720 155,800 562,370 318,896 417,268 92,273 72,225 224,626 2,384 731,980 401,680 196,300 (5,417) (22,393) 850 (15,800) 24,830 304 26,322 2,397 4,775 50,104 3,116 (650) 2,380 17,500 3,942,850 6,190,072 (5,655,840) (1,456,520) 3,854,532 6,284,982 32,632 (5,655,840) (1,447,520) Net other financing sources (uses) (7,112,360) (7,070,728) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses $ (922,288) (785,746) FUND BALANCES, at beginning of year 1,569,205 FUND BALANCES, at end of the year $ 783,459 The accompanying notes are an integral part of these combined financial statements. 10 88,318 94,910 32,632 9,000 41,632 $ 136,542 1 t 1 1 1 1 t i 1 1 1 1 1 11 Variance- vanance- favorable favorable Budget Actual (unfavorable) Budget Actual (unfavorable) $ 458,385 $ 483,809 $ 25,424 $ - $ - $ - 853,972 737,541 (116,431) - - - 44,500 981 (43,519) - - 4,129,010 4,158,858 29,848 - - _ 388,030 313,790 (74,240) - - 1,834 - (8,166) 1,105,700 1,039,304 (66,396) 10,000 6,979,597 6,734,283 (245,314) 10,000 1,834 (8,166) 69,690 74,686 (4,996) - - - 5,281,440 1 453 131 3,828,309 45,400 - 45,400 747,026 (228,792) - - - 518,234 391,280 303,797 87,483 - - - - - - 1,923,340 1,915,833 7,507 885,430 852,040 33,390 = 10,000 1,612 8,388 6,260,644 2,578,640 3,682,004 2,864,170 2,769,485 94,685 718,953 4,155,643 3,436,690 (2,854,170) (2,767,651) 86,519 - _ - 1,592,480 1,650,598 58,118 307,708 307,708 1,033,270 1,025,260 (8,010) - (476,990) (476,990) - (40,570) (40,570) - (169,282) (169,282) 2,625,750 2,635,288 9,538 $ 718,953 3,986,361 $ 3,267,408 $ (228,420) (132,363) $ 96,057 9,394,977 594,663 $ 13,381,338 $ 462,300 11 A KODIAK ISLAND BOROUGH EXHIBIT 4 COMBINED STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS (ACCUMULATED DEFICITS) PROPRIETARY FUND TYPES YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) Totals reporting entity (memorandum only) Internal Enterprise Service 1999 1998 OPERATING REVENUES: Solid waste collection Solid waste disposal State sources - revenue sharing Charges for services/customer charges Lease proceeds Other OPERATING EXPENSES: Personnel services Solid waste collection Contracted services Repairs and maintenance Landfill closure and postclosure costs Depreciation Support goods and services Supplies General and administration Medicaid refund Telephone services Recycling services Contributions Operating income (loss) OTHER INCOME (EXPENSES): Loss on of disposal of fixed assets Interest income Interest expense Net income (loss) from continuing operations TRANSFER (TO) FROM OTHER FUNDS: Operating transfers in from other funds Operating transfers out to other funds Net operating transfers $ 1,638,078 $ - $ 1,638,078 $ 1,539,677 855,554 - 855,554 870,753 67,327 - 67,327 70,751 75,951 632,381 708,332 713,813 1,715,891 - 1,715,891 720,000 520,253 - 520,253 26,742 4,873,054 632,381 5,505,435 3,941,736 485,256 402,514 887,770 782,069 1,271,421 - 1,271,421 1,163,688 307,634 5,700 313,334 288,120 42,891 - 42,891 118,018 (260,731) - (260,731) 227,512 653,272 106,464 759,736 786,770 - 156,508 156,508 - - - - 45,129 457,727 14,016 471,743 259,630 2,200 - 2,200 163,140 31,379 - 31,379 185,776 64,110 - 64,110 68,009 23,524 - 23,524 50,536 3,078,683 685.202 3,763,885 4,138,397 1,794,371 (52,821) 1,741,550 (196,661) (483) - (483) (10,940) 21,086 - 21,086 244,265 (873,231) - (873,231) (395,151) 941,743 (52,821) 888,922 (358,487) 786,000 - 786,000 1,300,000 (418,869) - (418,869) (420,000) 367,131 - 367,131 880,000 n ri 1 1 Cl 0 1 1 i r 1 1 Amortization of contributions in aid of construction 54,340 - 54,340 74,239 Increase (decrease) in retained earnings 1,363,214 (52,821) 1,310,393 595,752 Accumulated deficits at beginning of year (1,915,240) (174,777) (2,090,017) (2,685,769) Accumulated deficits at end of year $ (552,026) $ (227,598) $ (779,624) $ (2,090,017) The accompanying notes are an integral part of these combined financial statements. 12 I 1 1 I KODIAK ISLAND BOROUGH EXHIBIT 5 COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES YEAR ENDED JUNE 30, 1999 (with comparative totals for 199 8) Totals OPERATING INCOME (LOSS) ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Depreciation Loss on disposal of fixed assets Net assets received from residual equity transfer Changes in assets and liabilities that provided (used) cash: Accounts receivable: Customers Other Interest receivable on investments Prepaid expenses Inventories Due to /from other funds Accounts payable Deferred revenues Accrual for landfill closure and postclosure costs Due to the City of Kodiak Other accrued liabilities Total adjustments Net cash provided by (used in) operating activities CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES: Operating transfers out to other funds Operating transfers in from Hospital Component Unit Operating transfers in from other funds Net cash provided by noncapital financing activities reporting entity (memorandum only) Internal Enterprise Service 1999 1998 $ 1,794,371 $ (52,821) $ 1,741,550 $ (196,661) 653,272 106,464 759,736 786,770 - 24,036 24,036 10,940 1,486 - 1,486 - (17,950) - (17,950) 37,955 - (471) (471) 17,725 (1,109) - (1,109) - - 8,424 8,424 8,424 2 - 2 - 954,965 (113,435) 841,530 (1,375,859) (16,565) (1,705) (18,270) 7,007 60,000 (260,731) - (260,731) 215,708 (38,583) - (38,583) 38,583 4,684 1,076 5,760 4,319 1,279,471 24,389 1,303,860 (188,428) 3,073,842 (28,432) 3,045,410 (385,089) (418,869) - (418,869) (420,000) _ _ - 1,300,000 786,000 - 786,000 - 367,131 - 367,131 880,000 (continued) 13 ' KODIAK ISLAND BOROUGH EXHIBIT 5, continued COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES (continued) YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) Totals reporting entity (memorandum only) Internal Enterprise Service 1999 1998 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets Interest paid on notes payable, capital leases, and interfund borrowing Proceeds from issuance of long -term interfund borrowing Proceeds from issuance of notes payable Principal payments made on notes payable Principal payments made on capital lease Receipt of gifts restricted by donor for capital purchases Net cash used in capital and related financing activities: CASH FLOWS FROM INVESTING ACTIVITIES: Change in assets whose use is limited: Deductions from (additions to) restricted cash Deductions from restricted investments Interest and dividends on investments Purchases of investments Maturities of investments Net cash provided by (used in) investing activities: Net change in cash and cash equivalents CASH AND EQUIVALENTS, at beginning of year CASH AND EQUIVALENTS, at the end of year $ (309,804) $ (58,810) $ (368,614) $ (9,613,903) (873,231) - (873,231) (395,151) - - - 8,000,000 418,869 - 418,869 - (525,666) - (525,666) (489,746) (367,726) - (367,726) (352,273) - - - 210,800 (1,657,558) (58,810) (1,716,368) (2,640,273) (9,810) - (9,810) 1,434,419 139,520 - 139,520 11,248 21,086 - 21,086 244,265 (1,988,878) - (1,988,878) - - - - 387,057 (1,838,082) - (1,838,082) 2,076,989 (54,667) (87,242) (141,909) (68,373) 54,767 87,242 142,009 210,382 $ 100 $ - $ 100 $ 142,009 NONCASH CAPITAL AND RELATED FINANCING ACTIVITES Contributions in aid of construction received $ 30,529,979 $ - $ 30,529,979 $ Residual equity transfers 234,276 - 234,276 Contributions in aid of construction received i from private sources - - - 849,415 $ 30,764,255 $ - $ 30,764,255 $ 849,415 The accompanying notes are an integral part of these combined financial statements. 14 I 1 KODIAK ISLAND BOROUGH NOTES TO THE COMBINED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1999 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Regortina Entity The Kodiak Island Borough (the Borough), Alaska, 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 unit, an entity for which the government is considered to be financially accountable. The 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 organization is a component unit. 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 the component unit may be obtained at the entity's administrative offices for the Kodiak Island Borough School District. Kodiak Island Borough School District 722 Mill Bay Road 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. Interf ind eliminations have not been made in the aggregation of these data. Certain 1998 balances have been reclassified to conform to the current year presentation. B. Measurement Focus, Basis of Accounting, and Basis of Presentation 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 15 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. 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 has elected to follow all 16 L 1 applicable GASB pronouncements and all Financial Accounting Standards Board (FASB) pronouncements issued on or before November 30, 1989 that are not in conflict with GASB pronouncements. 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 Borough Assembly 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. 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. 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 1 st. 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. 17 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. Interizovernmental 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, and unrealized gains and losses on investments held at fiscal year -end. 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. C. Budgets and Budgetary Accounting Borough The Borough follows these procedures in establishing the budgetary data reflected in the combined financial statements: The Borough Manager 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 Borough Manager becomes the adopted budget. 18 4. Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or administrative action. Generally, the following actions are required at the level of the particular change: a. All new appropriations are authorized by an appropriation ordinance that amends the annual budget ordinance. b. A resolution of the Borough Assembly is required to move (appropriate) amounts between departments and projects. c. The administration is authorized and directed by the Borough Assembly to effect the necessary line item changes within the limits established by Items (1) and (2) above by project or department to properly monitor, account, and report receipts and expenditures. 1 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. 7. 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, 1999, there were two formal budget revisions to adjust the revenues and expenditures to available resources and program needs. 19 D. Assets. Liabilities and Fund Equity Interfund Transactions Transactions that would be treated as revenues, expenditures or expenses, if they involved organizations external to the Borough, are similarly treated if they occur between the fund types. Reimbursements from one fund to another are treated as expenditures or 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. Long -term interfund transfers of funds are accounted for as long -term interfund advances/borrowings. See Note 7 for additional disclosure. 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, 1999 there are no significant amounts of such inventories on hand. The Hospital Enterprise Fund also has at June 30, 1999 amounts of inventory assigned to Providence as of April 21, 1997 which, by the terms of the lease agreement for the hospital facilities (see Note 17), are required to be returned to the Borough at the termination of the lease in at least equal value. 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. MO 1 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 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. G. New Accounting and_ Renortine Standard In June 1999, Statement No. 34 of the Governmental Accounting Standards Board, Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments, was issued. This statement establishes new financial reporting requirements that will result in greater accountability by state and local governments by providing more useful information to a wider range of users. This statement also requires state and local governments to present a government wide set of financial statements prepared on the accrual basis and to record and to depreciate capital assets, including infrastructure assets. The impact of this new standard has not been fully determined, however, the change will likely result in a significant increase in equity as a result of recording all capital assets, including infrastructure assets. The Borough is required to adopt this statement for the fiscal year beginning July 1, 2002. 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 1 addition, investments are separately held by several of the Borough's funds. Investments are carried at fair value, as determined by quoted market prices. At June 30, 1999, the carrying amount of the Borough and its Component Unit deposits was an overdraft of $223,299 and the corresponding bank balance was $1,108,661. 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 $4,030,000, is held in the Borough's name at State Street Bank, as custodian for the Borough. 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 1 21 1 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. Investments are categorized as follows to give an indication of the level of risk assumed: 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 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. The carrying amount of temporary investments approximates fair value. At June 30, 1999, the Borough's investment balances were categorized as follows: Category Carrying Investments - categorized: 1 2 3 amount U.S. Government Securities $9,241,233 $ - $ - $ 9,241,233 Investments - not categorized: Municipal League Investment Pool Total Investments 2,231,653 $11,472,886 1 n 1 1 �7 0 The above bank deposits of $(223,299) investments of $11,472,886 plus cash on hand of $1,195 totaling $11,250,782 are reported under the following captions in the combined financial statements: Equity in central treasury cash $ 118,323 Temporary investments 11,472,886 Cash overdraft (340,427) Total deposits and investments $ 11,250,782 The Borough reports investments at fair value in the balance sheet, and reports the changes in the fair value of investments as revenue in the operating statement. NOTE 3: ANNUAL APPROPRIATION TO THE SCHOOL DISTRICT An annual appropriation ro riation 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. ann ual ap the Borou h In addition to the ann provides the School District, without charge, g p general liability and property insurance, data processing services, the annual independent audit, mental health services, and grounds maintenance services. These are reflected as in -kind services in the financial statements of the School District. I 22 1 NOTE 4: RETIREMENT COMMITMENTS 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 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: 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 percent of the member's three highest average monthly compensation for the first ten years of service, 2 -1/4 percent for the second ten years of service and 2 -1/2 percent for all remaining years of service. All service earned prior to July 1, 1986 will be calculated using the 2 percent multiplier. Employees with 30 or more years of credited service (20 years for peace officers and firefighters) 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 percent of their annual covered salary and the Borough is required to contribute an actuarially determined rate - the current rate is 8.78 percent of annual covered payroll. Annual pension cost: For the year ended June 30, 1999, the Borough's annual pension cost was $185,634 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, 1997. Significant actuarial assumptions used in the valuation include: (a) a rate of return on the investment of present and future assets of 8.25 percent per year compounded annually and (b) projected salary increases of 5.5 percent a year for the first five years of employment and 4.5 percent per year thereafter, with distinction made between amounts for inflation (4.0 percent), merit for the first five years (1.0 percent), and productivity (0.5 percent). 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 25 years. The percentage of pay method is used for amortization purposes. 1 23 J Three -year trend information for PERS Annual Year pension ended cost (APQ 6/30/1997 370,000 6/30/1998 180,700 6/30/1999 185,634 B. Component Unit Retirement Commitments F� Percentage Net of APC pension contributed obligation 100% - 100% - 100% - 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, 1999, 1998 and 1997, the School District's annual pension cost was $176,670, $184,491 and $334,984 and equal to the required and actual contributions. TRS is a cost - sharing, multiple - employer defined benefit cost sharing 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 percent 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, 1999, 1998 and 1997, the School District's annual pension cost was $1,600,327, $1,317,184, and $1,302,918, which was equal to the required and actual contribution. 24 � I I C Required Supplementary Information - Schedule of Funding Progress for PERS (Dollar amounts in thousands for the primary government only) li 'I 1 L� NOTE 5: FIXED ASSETS A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1999 follows: July 1, 1998 Actuarial Deductions June 30, 1999 Government Funding Actuarial accrued Funding $ 5,397,389 $ 2 Excess as a Actuarial value of liability Excess Funded Covered percentage of valuation assets (AAL) (FE) ratio payroll covered payroll date (a) (b) (a -b) (a/b) (c) ((a -b) /c) $124,523,697 $ 6,475,428 $ 29,978,210 6/30/1996 $ 6,159 $ 5,894 $ 265 104% $ 3,042 8.7% 6/30/1997 7,988 7,288 700 110% 3,179 22.0% 6/30/1998 9,698 8,303 1,395 117% 2,054 67.9% NOTE 5: FIXED ASSETS A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1999 follows: 1 25 July 1, 1998 Additions Deductions June 30, 1999 Government Land $ 5,397,389 $ 2 $ - $ 5,397,391 Buildings 88,418,025 14,301 - 88,432,326 Improvements other than buildings 858,460 32,261 - 890,721 Machinery and equipment 1,503,883 35,463 30,127 1,509,219 Construction work -in- progress 28,345,940 6,393,401 29,948,083 4,791,258 $124,523,697 $ 6,475,428 $ 29,978,210 $ 101,020,915 1 25 The following is a summary of Proprietary Fund fixed assets at June 30, 1999: Unclassified utility plant in service Land and improvements Building and improvements Equipment Work -in- process Less: accumulated depreciation Net fixed assets Internal Enterprise Service Funds Fund $ 2,205,383 $ - 409,069 - 41,093,759 - 7,407,440 618,876 4,563,935 - 55,679,586 618,876 (7,145,916) (303,274) $ 48,533,670 $ 315,602 Depreciation lives for Proprietary Fund fixed assets are as follows: Building and improvements 15 -20 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. 26 NOTE 6: LONGTERM DEBT The following is a summary of long -term debt for the year ended June 30, 1999: Interest Principal Payments Issue Maturity Type of Debt Rates Dates Date Dates Dates Amount Environmental Protection Agency Asbestos Abatement Loan 0.0% • 6/20/1985 11/8/2005 12/31/1999 $ 10,417 06/30 and 12/31 4 x 10,416 2000 thru 2004 6 x 10,417 114,583 General Obligation School Refunding Bonds - 1989 Series 6.6 -8.0% 8/1 -2/1 5/1/1989 8/1/2000 8/1/1999 1,080,000 811/2000 1,155,000 2,235,000 General Obligation Refunding Bonds - 1993 Series 3.90 -7.00% 8/15 -2/15 11/15/1993 2/15/2006 2 /15/2000 760,000 2/15/2001 790,000 2/15/2002 825,000 2/15/2003 860,000 2/15 /2004 900,000 2/15 /2005 940,000 2/15/2006 980,000 6,055,000 General Obligation Bonds - 1994 Series 5.40 - 5.50% 8/15 -2/15 11/15/1993 2/15 /2014 2/15 /2007 1,030,000 1,030,000 General Obligation Refunding Bonds - 1998 Series 3.25 -4.30% 8/15 -2/15 12/22/1998 2/15/2014 2/15 /2000 45,000 2/15/2001 50,000 2/15 /2002 50,000 2/15/2003 50,000 2/15/2004 55,000 2/15 /2005 55,000 2/15 /2006 60,000 2/15/2007 60,000 2/15/2008 1,150,000 2/15 /2009 1,200,000 2/15 /2010 1,250,000 2/15/2011 1,305,000 2/15 /2012 1,360,000 2115 /2013 1,420,000 2/15 /2014 1,480,000 9,590,000 Accrued annual leave 0.00% 122,141 State of Alaska ADEC loans Clean Water - Karluk 3.92-4.05% •' " •' •• 104,947 $ 19,251,671 ' Interest free unless delinquent, then 7 percent plus fees and penalties. " These loans represent State of Alaska financial assistance programs, for which no payment schedules will be finalized, or principal payments made, until the plans and specifications for the projects funded have been completed. The loans are in the amounts of $350,000 and $50,000, and are to be repaid from general fund revenues of the Borough, and therefore the debt is reported in the General Long -Term Debt Account Group. Interest begins accruing at the stated rates from the date of each individual disbursement of loan proceeds to the Borough 28 Authorized Prior Years Current Year Fiscal Refunded/ Balance at Refunded/ Balance at Year Amount Issued Retired July 1, 1998 Issued Retired June 30, 1999 1985 $ 375,000 $ 375,000 $ 239,585 $ 135,415 $ - $ 20,832 $ 114,583 1989 10,000,000 10,000,000 6,750,000 3,250,000 - 1,015,000 2,235,000 1994 9,215,000 9,215,000 2,430,000 6,785,000 - 730,000 6,055,000 1994 9,985,000 9,985,000 - 9,985,000 - 8,955,000 1,030,000 1999 9,740,000 - - 9,740,000 150,000 9,590,000 1998 - 160,212 230,786 268,857 122,141 1998 400,000 99,698 - 99,698 5,249 104,947 $ 39,715,000 $ 29,674,698 $ 9,419,585 $ 20,415.325 $ 9,976,035 $ 11,139,689 $ 19,251,671 29 t all general obligation he annual requirements to amortize bonded debt and the EPA loan g g payable outstanding as of June 30, 1999, including interest payments of $6,617,032 on the general obligation debt, are as follows: General EPA Loan June 30, obligation payables Total 2000 $ 2,740,916 $ 20,834 $ 2,761,750 2001 2,740,493 20,832 2,761,325 2002 1,545,013 20,834 1,565,847 2003 1,542,251 20,832 1,563,083 2004 1,547,535 20,834 1,568,369 Thereafter 15,410,824 10,417 15,421,241 $ 25,527,032 $ 114,583 $ 25,641,615 general obli Debt Service Funds to service all obligation The amount of $340,159 is available m the g g 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. Refunding Bonds On December 7, 1998, the Kodiak Island Borough issued $9,740,000 in General Obligation Refunding Bonds with an average interest rate of 4.29 percent to advance refund $8,955,000 of outstanding 1994 series General Obligation bonds with an average interest rate of 5.47 percent. The net proceeds of $9,564,676 (after payment of $175,324 in underwriting fees, insurance and other issuance costs) were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1994 Series General Obligation Bonds. As a result, $8,955,000 of the 1994 Series General Obligation bonds are considered defeased and the liability for that amount of those bonds has been removed from the general long -term debt account group of the Kodiak ' Island Borough. The Borough advance refunded the 1994 Series General Obligation bonds to reduce its total debt services payments over the next 16 years by almost $504,859 and to obtain an estimated economic gain (difference between the present values of the debt service payments on the old and new debt) of $380,037. The gain is based on receiving future debt service reimbursements from the State of Alaska at the rate structure currently in effect. �1 30 1 The investments in the securities and the current obligations of the defeased bonds are not reflected in the combined financial statements. A summary of the investments held in trust and the current obligations of the defeased bonds at June 30, 1999 are summarized as follows: Bond principal Investments outstanding held in trust Series 1994 Government Obligation bonds, 5.4% to 5.5 %, due in installments to 2007 $ 8,955,000 $9,322,367 (1) (1) Alaska USA Trust Co. as trustee. NOTE 7: LONG -TERM INTERFUND BORROWINGS In October 1997 the Facilities Special Revenue Fund loaned $8,000,000 to the Hospital Facilities Enterprise Fund. The loan from the Facilities Special Revenue Fund is accounted for as a long- term interfund advance, while the liability in the Hospital Facilities Enterprise Fund is accounted for as a long -term interfund borrowing. The interest revenue and interest expense on the debt are reported as operating transfers in/out. The advance bears interest at 7 percent, and the scheduled payments for the next five fiscal years ended and thereafter are as follows: June 30, Principal Interest Total 2000 $ 195,000 $ 553,175 $ 748,175 2001 210,000 539,000 749,000 2002 225,000 523,775 748,775 2003 240,000 507,500 747,500 2004 255,000 490,175 745,175 Thereafter 6,875,000 4,205,775 11,080,775 $ 8,000,000 $ 6,819,400 $ 14,819,400 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 percent to 8.775 percent. The initial cost of such equipment included in fixed assets at June 30, 1999, is approximately $1,841,373. Accumulated amortization on the leased equipment is approximately $823,606 at June 30, 1999. 31 payments under the capital leases for the next four fiscal ears The minimum required lease payme p Y , ended are as follows: .. June 30 2000 $ 437,619 2001 433,124 2002 268,205 2003 106,090 2003 1,245,038 Less amount representing interest (227,271) $ 1,017,767 NOTE 9: NOTE PAYABLE As of June 30, 1999, the Borough had the following notes payable outstanding in the Enterprise Funds: Note payable to First Union Capital Markets Corporation, due in monthly installments of $57,693, including interest (at an effective annual rate of 6.4 %); secured by equipment $ 2,447,986 Note payable to Environmental Protection Agency, to be paid within 20 years at 3.8 percent interest, terms to be negotiated with EPA upon completion of the project. 418,869 2,866,855 Less current portion of note payable 556,625 $ 2,310,230 Future required minimum principal payments at June 30, 1999 excluding payments to the EPA for the fiscal years ended are as follows: June 30, 2000 $ 556,625 2001 592,015 2002 629,656 2003 669,690 $ 2,447,986 32 1 NOTE 10: CAPITAL PROJECT FUNDS CONSTRUCTION COMMITMENTS A summary of Capital Projects Funds construction commitments at June 30, 1999 follows: Various Borough Projects $ 51,159 State Capital Grants 587,942 $ 639,101 Resources are presently available or committed to finance construction commitments at June 30, 1999, for all funds, inclusive of those resources appropriated at year -end. 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 17), a Kodiak Fisheries Research Center Fund, and a 911 Services Fund. Segment financial data as of and for the year ended June 30, 1999, for those funds are as follows: Operating revenues Depreciation expense Operating income Operating transfers in (out) Net income Amortization of contributions in aid of construction Property, plant and equipment additions Net working capital Total assets Total equity Municipal Solid 18,241,449 - 11,961,139 Kodiak 572,472 Waste Collection Hospital 934,483 Fisheries 27,093,196 and Disposal Facilities 911 Services Research Center Total $ 2,501,372 $ 1,299,840 $ 75,951 $ 995,891 $4,873,054 104,201 545,084 - 3,987 653,272 386,873 738,746 44,572 624,180 1,794,371 (418,869) - - 786,000 367,131 388,169 443,980 44,572 65,022 941,743 54,340 - - 54,340 656,763 18,241,449 - 11,961,139 30,859,351 572,472 (230,402) 3,658 588,755 934,483 3,398,216 27,093,196 11,888 20,991,798 51,495,098 856,921 23,389,267 3,658 12,740,907 36,990,753 NOTE 12: DEFERRED COMPENSATION PLAN The Kodiak Island Borough has a deferred compensation 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. 33 All amounts deferred under this plan are held in a trust that was established for the exclusive benefit of plan participants. Amounts contributed to the plan by participants during the year ended June 30, 1999, was $111,570. The plan is managed by the International City Managers Association Retirement Corporation. The Borough believes that the plan does not meet the criteria in NCGA Statement No. 1, Governmental Accounting and Reporting Principles, for inclusion as a fiduciary fund. 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. 34 � I 1 35 NOTE 14: INDIVIDUAL FUND DISCLOSURES Interfund Receivables and Payables A summary of interfund receivables and payables at June 30, 1999, is as follows: Receivable Payable General Fund $ 1,401,459 $ 5,085,443 Special Revenue Funds: Mental Health Center - 326,745 Child Care Assistance Program - 3,920 i Welfare to Work - 36,003 Land Sales - 15,342 Kodiak Transit Authority Building and Grounds - 108 162,317 73,469 Coastal Management - 22,328 L.E.P.C. Women Bay Service Area - 151,114 14,138 - Road Service District No. 1 254,491 - Service Area No. 2 Monashka Bay Road Service Area 3,497 45,222 - - Bay View Road Service 1,554 - ' Fire Protection Area No. 1 Womens Bay Fire Department 471,808 148,265 - - Kodiak Airport Fire District 1,653 - Woodland Acres Street Lights Kodiak Arts Council 44,940 - - 3,358 Facilities Fund 8,140,000 359,992 Tourism Development 11,730 - Debt Service Funds: Debt Service 333,826 - Debt Service - Other Capital Project Funds: 122,141 - Various Borough Protects 284,569 61,774 State Capital Grants - 108,724 School Bond Improvements 16,253 16,253 Enterprise Funds: Municipal Solid Waste Collection and Dispo 61,019 - Hospital Facilities 18,790 178,176 Kodiak Fisheries Research Center 51,546 8,175,173 911 Services 11,888 - Internal Service Fund: Management Information Services 113,435 - Component units: School District 2,953,847 - $14,643,155 $ 14,643,155 1 35 As of June 30, 1999, the Kodiak Fisheries Research Center Enterprise Fund has borrowed $7,805,000 million from the Facilities Special Revenue Fund. See Note 7 for additional information regarding the interfund borrowings. Fund Deficits and Accumulated Deficits: The fund deficits and accumulated deficits at June 30, 1999, are as follows: Special Revenue Funds: Mental Health Center $ 326,518 Coastal Management 147 Land Sales 38,172 Kodiak Transit Authority 245,477 Buildings and Grounds 89,743 Enterprise Fund: Municipal Solid Waste Collection and Disposal 1,426,999 Internal Service Fund: Management Information System 227,598 $ 2,354,654 Management intends to fund the Special Revenue Funds deficits in fiscal year 1999 through transfers from other funds and fund the deficit in the Enterprise Fund through an increase in service charges. In the fiscal year 2000 budget management closed the Management Information System Internal Service Fund and moved this function to the General Fund. All related assets, liabilities, and residual equities will be moved to the General Fund in fiscal year 2000. Transfers Interfund operating transfers and transfers from component units have been made in accordance with budget ordinances. 36 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, 1999, were as follows: Excess of Expenditures Over Appropriations General Fund The following departments' expenditures exceeded their appropriations: Department Excess Borough assembly $ 5,417 Transfers In 22,393 Borough attorney 15,800 School District support 650 $ 44,260 School Special Debt Capital District Transfers General Revenue Service Projects Enterprise component Out Fund Funds Funds Funds Funds unit Fund Tvpes General Fund $ 7,103,360 $ - $119,770 $1,024,270 $ 303,480 $ - $5,655,840 Special Revenue Funds 476,990 - 180,000 990 296,000 - - Debt Service Funds 40,570 32,632 7,938 - - - - Capital Projects Funds 974,393 - - - 188,393 786,000 - Enterprise Funds 418,869 - - - 418,869 - - Component unit School District 1,650,598 - - 1,650,598 - - - Total transfers $10,664,780 $32,632 $307,708 $2,675,858 $1,206,742 $ 786,000 $5,655,840 Excess of Expenditures Over Appropriations General Fund The following departments' expenditures exceeded their appropriations: Department Excess Borough assembly $ 5,417 Borough mayor 22,393 Borough attorney 15,800 School District support 650 $ 44,260 Special Revenue Funds The following funds' expenditures exceeded their appropriations: Fund Excess Bay View Road Service Area $ 2,927 Mental Health Center 249,998 Tourism Development 4,996 $ 257,921 37 Proprietary Funds' reconciliation of contributed capital for the year ended June 30, 1999, is as follows: Enterprise Funds Kodiak Fisheries Research Cente Hospital Facilities Contributed capital at beginning of year $ - $ 5,147,927 Residual equity transfers 215,486 18,790 Contributed capital at end of year $ 215,486 $ 5,166,717 Proprietary Funds' reconciliation of contributions in aid of construction for the year ended June 30, 1999, is as follows: Enterprise Funds Contributions in aid of construction at beginning of year Amortization of contributions in aid of construction Capital projects funds State of Alaska Contributions in aid of construction at end of year Kodiak Municipal Solid Internal Fisheries Research Waste Collection Hospital Service Center and Disposal Facilities Fund $ - $ 1,684,937 $ - $ 617,382 (54,340) - 8,920,540 - 17,956,116 - 3,000,000 653,323 - $ 11,920,540 $ 2,283,920 $17,956,116 $ 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 $1,939,400 as of June 30, 1999, which is based on 57 percent usage (filled) of the landfill. The landfill is estimated to be filled and unusable by the year 2020. Of the total liability at June 30, 1999, a decrease of $260,731 was recorded in the current year based on current year usage and changes in 38 F� estimates. An estimated additional $1,475,621 will be recognized as closure and postclosure care 1 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 $3,415,000 is based on the amount that would be paid if the landfill were closed as of June 30, 1999. 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. 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 $18,194,266 to date, and will receive the balance of the sale in the ' following payments: October 1, i 1999 $ 4,000,000 2000 4,000,000 2001 4,000,000 2002 11,805,734 Six 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. NOTE 17: HOSPITAL FACILITIES ENTERPRISE FUND ' The Kodiak Island Borough Assembly passed an ordinance to cease operations of the Kodiak Island Hospital and Care Center, effective April 20, 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. i 39 Under the terms 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 was recorded as consideration for the net assets and liabilities transferred to /assumed by Providence. 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. Additionally, the Borough receives 50 percent of the net revenues of the hospital, up to $600,000. 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. NOTE 18: CONTINGENCIES I Litisation 1 General normal course of its activities is involved in various claims and pending , The Borough, m the no P g 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. C. 40 1 1 5 KODIAK ISLAND BOROUGH REQUIRED SUPPLEMENTARY INFORMATION — INFORMATION ABOUT THE YEAR 2000 (UNAUDITED) YEAR ENDED JUNE 30, 1999 The year 2000 (Y2K) problem may affect many of the computer systems and other electronic equipment necessary for the continued and uninterrupted operations of a government. The effects of the Y2K problem extend beyond systems that produce financial information. It ' encompasses all of the Borough's computer systems and any equipment that is dependent on microchip technology. The Borough's Management Information Systems Department began the Y2K effort in early 1997 as a result of these shortcomings that could adversely affect the Borough's operations if not resolved. After becoming aware of the potential problem, the Borough began inventorying and testing embedded systems and chips that are scattered throughout the government departments and did not find any major system that could not be replaced or corrected in a timely manner. The Borough has been remediating the problem through a combination of dealing with technical issues of converting existing systems and switching to compliant systems. In certain cases in ' which old systems were at the end of their useful life, the entire hardware and software system was replaced with a newer application package that added significant new functions as well as corrected the Y2K exposure. In other cases, the Borough modified the existing programming ' code to handle identified date issues and placed the system back into production. By the end of November 1999, the Borough will have either replaced or corrected approximately ' 90 percent of its affected systems. All major systems in General Government are converted, tested and in production. This will allow time to correct or replace minor applications and prepare contingency plans for the possible impact of failures occurring outside or inside the Borough's direct sphere of influence. The cost of all related Y2K efforts of the Borough is approximately $85,500. Of this total, 80 ' percent of the costs are for entire system replacements and 20 percent of the costs are for code repair of existing systems. ' Because of the unprecedented nature of the Year 2000 issue, its effects and the success of related remediation efforts will not be fully determinable until the Year 2000 and thereafter. Management cannot assure that the Borough is or will be Year 2000 ready, that the Borough's remediation efforts will be successful in whole or in part, or that the parties with whom the Borough does business will be year 2000 ready. t 1 41 1 1 1 i GENERAL FUND r t 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. 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 intergovernmental revenues. Primary expenditures are for general government, public services and debt service. KODIAK ISLAND BOROUGH EXHIBIT A -1 GENERAL FUND BALANCE SHEETS JUNE 30, 1999 AND 1998 1999 1998 ASSETS Equity in central treasury $ 117,779 $ 667,288 Temporary investments 4,250,991 2,234,133 Accounts receivable 338,877 179,325 Due from State of Alaska 40,550 116,053 Due from other funds 1,401,459 - Property taxes: 2,953,847 1,669,638 Delinquent taxes 218,947 353,855 Allowance for uncollectible delinquent taxes (15,828) (15,828) Accrued interest 98,895 22,103 TOTAL $ 6,451,670 $ 3,556,929 LIABI LITIES AND FUND BALANCE LIABILITIES: Cash overdraft $ 340,427 $ - Accounts payable 140,675 181,642 Payroll taxes and employee benefits 88,360 85,054 Other accrued liabilities 5,026 27,066 Due to the City of Kodiak 8,280 24,324 Due to component units 2,953,847 1,669,638 Due to other funds 2,131,596 - Total liabilities 5,668,211 1,987,724 FUND BALANCE: Unreserved Designated for subsequent year expenditures - 922,288 Undesignated 783,459 646,917 Total fund balance 783,459 1,569,205 TOTAL $ 6,451,670 $ 3,556,929 43 KODIAK ISLAND BOROUGH EXIBBIT A -2 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 Variance - favorable 1998 Budget Actual (unfavorable) Actual REVENUES: Property taxes: Real Personal Motor vehicle Penalty and interest Total property taxes $ 5,341,280 $ 5,340,231 1,019,770 1,006,687 240,000 165,780 180,000 175,399 6,781,050 6,688,097 $ (1,049) $ 5,309,998 (13,083) 986,458 (74,220) 202,595 (4,601) 158,848 (92,953) 6,657,899 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 809,750 900,331 9,250 10,269 98,000 95,690 917,000 1,006,290 290,060 290,063 197,000 197,785 911,130 918,010 24,000 22,872 8,000 12,029 300 - 1,430,490 1,440,759 450,000 177,899 437,084 177,960 627,899 615,044 2,058,389 2,055,803 50,000 60,708 5,500 7,100 2,250 1,625 33,000 30,665 33,900 50,711 124,650 150,809 251,833 238,515 251,833 238,515 10,132,922 10,139,514 90,581 742,952 1,019 9,342 (2,310) 179,401 89,290 931,695 3 304,222 785 200,898 6,880 994,768 (1,128) 18,866 4,029 11,567 (300) - 10,269 1,530,321 (12,916) 433,504 61 775,250 (12,855) 1,208,754 (2,586) 2,739,075 10,708 60,686 1,600 6,205 (625) 932 (2,335) 30,156 16,811 97,446 26,159 195,425 (13,318) 389,252 (13,318) 389,252 6,592 10,913,346 (continued) 0 1 n 1 44 1 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, 1999 (with comparative totals for 1998) Total financing uses Excess (deficiency) of revenues and transfers in over expenditures and transfers out FUND BALANCE, at beginning of year FUND BALANCE, at end of year (7,112,360) (7,070,728) 41,632 (7,596,282) $ (922,288) (785,746) $ 136,542 1,569,205 $ 783,459 (479,736) 2,048,941 $ 1,569,205 45 1999 Variance - favorable 1998 Budget Actual (unfavorable) Actual EXPENDITURES: Borough assembly $ 131,000 $ 136,417 $ (5,417) $ 129,212 Borough mayor 232,200 254,593 (22,393) 199,994 Borough clerk 288,570 287,720 850 282,769 Borough attorney 140,000 155,800 (15,800) 191,017 Finance department 587,200 562,370 24,830 606,413 Assessing department 319,200 318,896 304 295,230 Borough engineering & facilities department - - - 86 Community development department 443,590 417,268 26,322 424,789 Building official 94,670 92,273 2,397 98,989 Economic development 77,000 72,225 4,775 68,251 General and administration 274,730 224,626 50,104 307,976 Emergency preparedness 5,500 2,384 3,116 2,366 School district support 731,330 731,980 (650) 602,666 Health and sanitation department 404,060 401,680 2,380 408,742 Education, culture and recreation 213,800 196,300 17,500 178,300 Total expenditures 3,942,850 3,854,532 88,318 3,796,800 Excess of revenues over expenditures 6,190,072 6,284,982 94,910 7,116,546 OTHER FINANCING SOURCES (USES): Operating transfers in from other funds - 32,632 32,632 - Operating transfers to other funds (1,456,520) (1,447,520) 9,000 (2,792,282) Operating transfers to component unit (5,655,840) (5,655,840) - (4,804,000) Total financing uses Excess (deficiency) of revenues and transfers in over expenditures and transfers out FUND BALANCE, at beginning of year FUND BALANCE, at end of year (7,112,360) (7,070,728) 41,632 (7,596,282) $ (922,288) (785,746) $ 136,542 1,569,205 $ 783,459 (479,736) 2,048,941 $ 1,569,205 45 KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative total for 1998) EXHIT A -3 r IB 1999 Variance- , favorable 1998 Budget Actual (unfavorable) Actual EXPENDITURES: ' Borough assembly: Personnel services $ 20,000 $ 20,000 $ - $ 16,800 Fringe benefits 3,400 3,280 120 1,838 Support goods and services 47,600 49,659 (2,059) 50,371 ' Political lobbyist 60,000 63,478 (3,478) 60,203 Total Borough assembly 131,000 136,417 (5,417) 129,212 ' Borough Mayor's office: Personnel services 143,950 164,770 (20,820) 124,868 ' Fringe benefits 38,200 38,962 (762) 35,306 Support goods and services 50,050 49,886 164 39,820 Capital outlay - 975 (975) - , Total Borough Mayor's office 232,200 254,593 (22,393) 199,994 Borough clerk: , Personnel services 149,230 156,426 (7,196) 147,451 Fringe benefits 42,130 39,679 2,451 40,189 Support goods and services 97,210 89,067 8,143 91,542 ' Capital outlay - 2,548 (2,548) 3,587 Total Borough clerk 288,570 287,720 850 282,769 ' Borough attorney: Legal fees 100,000 82,186 17,814 152,223 Support goods and services 40,000 73,614 (33,614) 38,794 Total Borough attorney 140,000 155,800 (15,800) 191,017 Finance department: Personnel services 358,970 343,487 15,483 367,550 Fringe benefits 103,790 99,463 4,327 101,257 Support goods and services 235,950 228,144 7,806 206,552 ' Capital outlay 2,500 5,286 (2,786) 8,072 Allocated to projects (114,010) (114,010) - (77,018) , Total finance department 587,200 562,370 24,830 606,413 (continued) ' 46 ' KODIA I SLA ND BOR EXHIBIT A -3, continued GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 Assessing department: Personnel services Fringe benefits Support goods and services Capital outlay Allocated to projects Total assessing department Borough engineering and facilities department: Personnel services Fringe benefits Support goods and services Allocated to projects Total Borough engineering and facilities department I Variance - favorable 1998 Budget Actual (unfavorable) Actual $ 207,630 Community development department: $ (5,105) Personnel services 57,750 Fringe benefits 342 Contracted services 75,010 Support goods and services 5,692 Capital outlay ' Allocated to projects (625) Total community (21,890) development department - (26,000) Building official: Contracted services ' Support goods and services 304 Total building official - - I Variance - favorable 1998 Budget Actual (unfavorable) Actual $ 207,630 $ 212,735 $ (5,105) $ 209,078 57,750 57,408 342 52,075 75,010 69,318 5,692 60,077 700 1,325 (625) - (21,890) (21,890) - (26,000) 319,200 318,896 304 295,230 - - - 89,675 - - - 21,524 - - - 73,192 - - - (184,305) - - - 86 298,040 278,940 19,100 288,067 82,960 77,366 5,594 73,398 - - - 150 78,590 77,335 1,255 77,654 - 677 (677) 520 (16,000) (17,050) 1,050 (15,000) 443,590 417,268 26,322 424,789 90,900 88,270 2,630 93,934 3,770 4,003 (233) 5,055 94,670 92,273 2,397 98,989 (continued) 47 KODIAK ISLAND BOROUGH EXHIBIT A -3, continued GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 Economic development: General services: Personnel services Fringe benefits Contracted services Contributions: City of Kodiak Alaska Ocean Seas & Fisheries Kodiak Chamber of Commerce Total economic development General and administration: Personnel services Fringe benefits Professional fees Support goods and services Total general and admistration Emergency preparedness: Support goods and services Total emergency preparedness School District support: Data processing Mental health services Audit expense Support goods and services Total School District support (continued) ' 48 ' Variance - favorable 1998 Budget Actual (unfavorable) Actual 1 1 1 t $ - $ - $ - $ 120 - - - 35 30,000 25,025 4,975 16,096 14,000 14,000 - 14,000 - 200 (200) 5,000 ' 33,000 33,000 - 33,000 77,000 72,225 4,775 68,251 ' 40,010 38,436 1,574 46,592 15,320 14,709 611 76,807 110,000 94,436 15,564 83,526 109,400 77,045 32,355 101,051 , 274,730 224,626 50,104 307,976 ' 5 2,384 8 3,116 2,366 5,500 2,384 3,116 2,366 ' 260,730 264,520 (3,790) 315,530 399,600 399,600 - 199,800 31,000 28,666 2,334 40,619 40,000 39,194 806 46,717 ' 731,330 731,980 (650) 602,666 KODIAK ISLAND BOROUGH EXHIBIT A - 3, continued GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) Education, culture and recreation: KMXT Public Radio 15,000 1999 - 15,000 Historical Society 10,000 10,000 - 9,000 Variance - 5,000 5,000 - 5,000 Crime Stoppers favorable 1998 - 6,000 Budget Actual (unfavorable) Actual Health and sanitation department: 16,000 16,000 - 14,000 Village Libraries Emergency Medical Services $ 32,450 $ 30,362 $ 2,088 $ 30,156 Animal Control 52,000 52,000 - 48,000 Council on Alcoholism 42,388 42,388 - 43,007 State Health Services Villages 12,927 12,927 - 13,584 State Health Services KANA 4,310 4,310 - 4,528 Women's Resource Crisis Center 40,925 40,925 - 40,926 American Red Cross 3,500 3,500 - 3,000 Kodiak Baptist Mission 32,860 32,859 1 44,480 Small World (Day Care) 13,000 13,000 - 18,000 Special Olympics 7,000 7,000 - 7,000 Health Center Support 4,500 4,209 291 2,061 Senior Citizen Support 25,000 25,000 - 24,000 Kodiak Respite Care 5,200 5,200 - 5,000 Rainbow Child Care Center - - - 2,500 Salvation Army 8,000 8,000 - 7,500 Brother Francis Shelter 25,000 25,000 - 20,000 Ambulance Service 95,000 95,000 - 95,000 Total health and sanitation department 404,060 401,680 2,380 408,742 Education, culture and recreation: KMXT Public Radio 15,000 15,000 - 15,000 Historical Society 10,000 10,000 - 9,000 Summer Basketball 5,000 5,000 - 5,000 Crime Stoppers - - - 6,000 Kodiak Island Sportsman Association 2,000 2,000 - 2,000 Kodiak Art Council 16,000 16,000 - 14,000 Village Libraries 18,000 18,000 - 18,000 Chiniak Public Library 3,000 3,000 - 3,000 City of Kodiak Library 3,000 3,000 - 3,000 Head Start 8,000 8,000 - 8,000 Kodiak College 60,000 60,000 - 45,000 Kodiak Little League 5,000 5,000 - 5,000 (continued) CL� 1 KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative tota for 199 8) EXHIBIT A-3, continued I 1999 Education, culture and recreation, continued: Santa to the Villages Karluk IRA Council KANA Youth Olympics KANA Family Center Kodiak Youth Services Network Girl Scouts Total education, culture and recreation Total expenditures OTHER FINANCING SOURCES (USES): Operating transfers in from debt service fund Operating transfers out to other funds: Special revenue funds: Mental Health Center Day Care Assistance Building and Grounds Debt service funds: Schools Other Capital projects funds: Various Borough projects State grant - funded projects Net financing uses Operating transfers to component units: Kodiak Island Borough School District Total operating transfers out Total financing uses Total expenditures and transfers Variance - favorable 1998 Budget Actual (unfavorable) Actual $ 2,300 37,500 $ 2,300 $ 20,000 - 17,500 $ 2,300 20,000 ' 2,000 2,000 - 2,000 16,000 16,000 - 16,000 10,000 10,000 - 5,000 ' 1,000 1,000 - - ' 213,800 196,300 17,500 178,300 3,942,850 3,854,531 88,319 3,796,800 ' - 32,632 32,632 - _ _ - (439,445) ' (7,500) - 7,500 (3,000) (119,770) (119,770) - (195,030) (1,016,770) (1,016,770) - ( 1,019,400) (9,000) (7,500) 1,500 (14,507) ' (303,480) (303,480) - (1,103,400) - (17,500) ' (1,456,520) (1,414,888) 41,632 (2,792,282) (5,655,840) (5,655,840) - (4,804,000) (7,112,360) (7,070,728) 41,632 (7,596,282) ' (7,112,360) (7,070,728) 41,632 (7,596,282) $ 11,055,210 $ 10,925,259 $ 129,951 $ 11,393,082 I 50 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. SPECIAL REVENUE FUNDS The Fire Protection Area No. 1 Fund accounts for the activities related to fire suppression and fire prevention services to the citizens of the Bayside Fire Station service area. The Womens Bay Fire Department Fund accounts for the activities related to fire suppression and fire prevention services to the citizens of the Bells Flats Russian Creek Fire Station service area. The Kodiak Airport Fire District Fund accounts for the activities related to fire suppression and fire prevention services to the citizens of the Airport service area. The Monashka Bay Road Service Area Fund accounts for the activities related to road services within the service area. The Service District No. 1 Fund accounts for the activities related to maintenance service to roads within the district, including snow removal, ditching and grading. The Womens Bay Service Area Fund accounts for the activities related to maintenance service to roads within the service area, including snow and ice removal, ditching and culvert work. The Bay View Road Service Area Fund accounts for the activities related to road services within the service area. The Service Area No. 2 Fund accounts for the activities related to water and sewer services in the service area. This fund is in the design stage at present. The Mental Health Center Fund accounts for rents and expenses on the Borough owned mental health center. The center is leased by Sisters of Providence in Washington d/b /a Providence Health Systems in Alaska. The Coastal Management Fund accounts for State of Alaska and Federal grants related to the effects of coastal energy development impacts. Expenditures of these grants are for comprehensive plans, coastal sensitivity analysis, outer continental shelf impact analysis, ordinance update, and planning and zoning. The Childcare Assistance Fund accounts for a State of Alaska grant to finance day care for children of low- income employed families. The Welfare to Work Fund accounts for pass through grant monies for local agencies to help individuals become part of the work force. The Land Sales Fund accounts for the disposal of Borough -owned lands. The proceeds of land disposals are generally used for the management of Borough lands and the repairs and maintenance of Borough school buildings. The Building and Grounds Fund accounts for the operations and maintenance of certain buildings and grounds owned by the Borough which are jointly shared with the City of Kodiak, the Kodiak Island Borough School District, the State of Alaska, and certain non- profit community organizations. The Woodland Acres Street Light Service Area Fund accounts for activities related to the provision of street lighting within the service area. The Kodiak Arts Council Fund accounts for activities related to the facilitation of the arts in the Kodiak community. The Facilities Fund accounts for the proceeds from the sale of Shuyak Island. The single most important goal is to preserve the principal of the fund. Interest earnings, after inflation proofing, can be used for debt service and insurance on buildings. The Tourism Development Fund accounts for the collection of the Borough Transient Accommodation Tax (Bed Tax) and its subsequent transfer to the Kodiak Island Convention and Visitor Bureau. The Kodiak Transit Authority Fund accounts for the operation of a local bus system. A local contractor operates two buses within the Kodiak metropolitan area. The Local Emergency Planning Committee Fund accounts for State of Alaska grants ' provided for regional emergency preparation, response, and mitigation planning. a 1 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET AS OF JUNE 30, 1999 (with comparative totals for 1998) LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ 1,363 $ 290 $ - $ 2,048 Employee benefits accrued and withheld 414 - - - Customer deposits - 275 - - Deferred revenues - - - - Due to other funds - - - Total liabilities 1,777 565 - 2,048 FUND BALANCES (DEFICITS): Reserved- Long-term interfund advances - - - - Unreserved: Undesignated 476,524 150,882 18,012 43,629 Total fund balances(deficits) 476,524 150,882 18,012 43,629 TOTAL $ 478,301 $ 151,447 $ 18,012 $ 45,677 52 Fire and Road Service Areas F ire Roa Fire Womens Kodiak Monashka Bay Protection Bay Fire Airport Road Service Area No. 1 Department Fire District Area ASSETS Equity in central treasury $ - $ - $ - $ - Temporary investments - - - - Receivables: State of Alaska - - - - Land sales contracts, due within one year - - - - Accrued interest - - - - Other 6,493 3,182 16,359 455 Allowance for doubtful receivables - - - - Due from other funds 471,808 148,265 1,653 45,222 Prepaid expenditures - - - - Long -term interfund advances - - - - Land sale contracts, due after one year - - - - TOTAL $ 478,301 $ 151,447 $ 18,012 $ 45,677 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ 1,363 $ 290 $ - $ 2,048 Employee benefits accrued and withheld 414 - - - Customer deposits - 275 - - Deferred revenues - - - - Due to other funds - - - Total liabilities 1,777 565 - 2,048 FUND BALANCES (DEFICITS): Reserved- Long-term interfund advances - - - - Unreserved: Undesignated 476,524 150,882 18,012 43,629 Total fund balances(deficits) 476,524 150,882 18,012 43,629 TOTAL $ 478,301 $ 151,447 $ 18,012 $ 45,677 52 EXHIBIT B -1 Federal and State Grant Programs Road Service Womens Bay View Service Mental Child Care Welfare to District Bay Service Road Service Area Health Coastal Assistance Work No.l Area Area No.2 Center Management Program Program $ - $ - $ 200 $ - $ - $ - 30,819 55,924 57,496 2,512 3,640 - - 60,993 - 484 - - - - - (60,842) - - - 254,491 151,114 1,554 3,497 - - - - $ 257,003 $ 154,754 $ 1,554 $ 3,497 $ 351 $ 30,819 $ 56,408 $ 57,496 $ 36,830 $ 16,453 $ 18 $ 36,830 16,453 18 - $ 124 $ 8,638 $ 42,852 $ 21,493 - 326,745 22,328 3,920 36,003 - 326,869 30,966 46,772 57,496 220,173 138,301 1,536 3,497 326,518 (147) 9,636 - 220,173 138,301 1,536 3,497 326,518 (147) 9,636 - $ 257,003 $ 154,754 $ 1,554 $ 3,497 $ 351 $ 30,819 $ 56,408 $ 57,496 (continued) 53 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET AS OF JUNE 30, 1999 (with comparative totals for 1998) ASSETS Equity in central treasury Temporary investments Receivables: State of Alaska Land sales contracts, due within one year Accrued interest Other Allowance for doubtful receivables Due from other funds Prepaid expenditures Long -term interfund advances Land sale contracts, due after one year TOTAL LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable Employee benefits accrued and withheld Customer deposits Deferred revenues Due to other funds Total liabilities FUND BALANCES (DEFICITS): Reserved: Long -term interfund advances Unreserved: Undesignated Total fund balances (deficits) TOTAL Woodland Buildings Acres Street Kodiak and Light Service Arts Land Sales Grounds Area Council 71,795 - - - 8,525 17,050 25 3,387 (25,000) - - - 108 44,940 - 69,188 - - - $ 124,508 $ 17,158 $ 44,965 $ 3,387 $ 5,000 $ 33,432 $ 418 $ - 142,338 - - - 15,342 73,469 - 3,358 162,680 106,901 418 3,358 (38,172) (89,743) 44,547 29 (38,172) 89,743 44,547 29 $ 124,508 $ 17,158 $ 44,965 $ 3,387 54 EXHIBIT B -1, continued $ - $ 359,992 359,992 $ 83,160 $ 15,810 $ 267,929 $ 214,525 - - 414 1,514 325 - - 600 300 - - - 142,338 279,387 - 162,317 14,138 1,017,612 600,200 325 245,477 29,948 1,428,893 1,095,926 7,805,000 - - - 7,805,000 - 5,149,309 20,319 (245,477) 1 5,576,338 9,394,977 12,954,309 20,319 (245,477) 1 13,381,338 9,394,977 $ 13,314,301 $ 20,644 $ - $ 29,949 $ 14,810,231 $ 10,490,903 55 Kodiak Totals Tourism Transit Facilities Development Authority L.E.P.0 1999 1998 $ - $ - $ - $ - $ 200 $ 1,044,467 5,143,146 - - - 5,143,146 - - - - 29,949 174,188 318,708 - - - - 71,795 81,636 31,155 - - - 31,155 - - 8,914 - - 132,019 194,910 - - - - (85,842) (93,213) 335,000 11,730 - - 1,469,382 740,200 - - - - - 7,799 7,805,000 - - - 7,805,000 8,000,000 - - - - 69,188 196,396 $ 13,314,301 $ 20,644 $ - $ 29,949 $ 14,810,231 $ 10,490,903 $ - $ 359,992 359,992 $ 83,160 $ 15,810 $ 267,929 $ 214,525 - - 414 1,514 325 - - 600 300 - - - 142,338 279,387 - 162,317 14,138 1,017,612 600,200 325 245,477 29,948 1,428,893 1,095,926 7,805,000 - - - 7,805,000 - 5,149,309 20,319 (245,477) 1 5,576,338 9,394,977 12,954,309 20,319 (245,477) 1 13,381,338 9,394,977 $ 13,314,301 $ 20,644 $ - $ 29,949 $ 14,810,231 $ 10,490,903 55 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES (ACCUMULATED DEFICITS) YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 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 37,120 9,017 - - - 20,000 21,457 6,818 586 2,769 12,044 8,034 308,669 68,300 29,764 24,170 96,020 110,417 151,483 39,306 14,234 - - - - - - 57,786 142,393 95,221 151,483 39,306 14,234 57,786 142,393 95,221 over (under) expenditures 157,186 28,994 15,530 (33,616) (46,373) 15,196 OTHER FINANCING SOURCES (USES): Operating transfers in from other funds - - - - - - Operating transfers out to other funds (990) - - - - - Net other financing sources (uses) (990) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses FUND BALANCES (ACCUMULATED DEFICITS), at beginning of year FUND BALANCES (ACCUMULATED DEFICITS), at end of year 156,196 28,994 15,530 (33,616) (46,373) 15,196 320,328 121,888 2,482 77,245 266,546 123,105 $ 476,524 $ 150,882 $ 18,012 $ 43,629 $ 220,173 $ 138,301 56 Fire and Road Service Areas Fire Road Fire Womens Kodiak Monashka Bay Service Womens Protection Bay Fire Airport Road Service District Bay Service Area No. 1 Department Fire District Area No. I Area REVENUES: Property taxes $ 233,217 $ 48,491 $ 29,178 $ 19,546 $ 74,760 $ 73,863 State sources 16,221 3,974 - 1,855 8,889 8,520 Federal sources 654 - - - 327 Land sale proceeds - - - - - - 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 37,120 9,017 - - - 20,000 21,457 6,818 586 2,769 12,044 8,034 308,669 68,300 29,764 24,170 96,020 110,417 151,483 39,306 14,234 - - - - - - 57,786 142,393 95,221 151,483 39,306 14,234 57,786 142,393 95,221 over (under) expenditures 157,186 28,994 15,530 (33,616) (46,373) 15,196 OTHER FINANCING SOURCES (USES): Operating transfers in from other funds - - - - - - Operating transfers out to other funds (990) - - - - - Net other financing sources (uses) (990) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses FUND BALANCES (ACCUMULATED DEFICITS), at beginning of year FUND BALANCES (ACCUMULATED DEFICITS), at end of year 156,196 28,994 15,530 (33,616) (46,373) 15,196 320,328 121,888 2,482 77,245 266,546 123,105 $ 476,524 $ 150,882 $ 18,012 $ 43,629 $ 220,173 $ 138,301 56 EXHIBIT B -2 36,090 - - - - - - - - 93,730 191,663 522,296 5,066 249,998 - 497,028 - - - - 8,397 - - - - - - - - 8,397 - 249,998 36,090 497,028 93,730 191,663 522,296 5,066 2,723 159 (247,321) - 494 - 28,249 (218,662) (2,832) 7,220 300,488 - - - - - - - 7,220 300,488 - (2,723) 159 (247,321) - 494 - 35,469 81,826 (2,832) 4,259 3,338 (79,197) (147) 9,142 - (73,641) (171,569) 47,379 $ 1,536 $ 3,497 $ (326,518) $ (147) $ 9,636 $ - $ (38,172) $ (89,743) $ 44,547 (continued) UFA Federal and State Grant Programs Road Woodland Bay View Service Mental Child Care Welfare to Buildings Acres Street Road Service Area Health Coastal Assistance Work and Light Service Area No. 2 Center Management Program Program Land Sales Grounds Area $ 4,754 $ - $ - $ - $ - $ - - 675 - 2,677 36,090 497,522 93,730 - - 89 - - - - - - 158,858 - - - - - - - - 61,054 - - 245 159 - - - - - 303,634 2,145 5,674 159 2,677 36,090 497,522 93,730 219,912 303,634 2,234 36,090 - - - - - - - - 93,730 191,663 522,296 5,066 249,998 - 497,028 - - - - 8,397 - - - - - - - - 8,397 - 249,998 36,090 497,028 93,730 191,663 522,296 5,066 2,723 159 (247,321) - 494 - 28,249 (218,662) (2,832) 7,220 300,488 - - - - - - - 7,220 300,488 - (2,723) 159 (247,321) - 494 - 35,469 81,826 (2,832) 4,259 3,338 (79,197) (147) 9,142 - (73,641) (171,569) 47,379 $ 1,536 $ 3,497 $ (326,518) $ (147) $ 9,636 $ - $ (38,172) $ (89,743) $ 44,547 (continued) UFA i KODIAK ISLAND BOROUGH EXHIBIT B-2, continued I SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES(ACCUMULATED DEFICITS) YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 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 (ACCUMULATED DEFICITS), at beginning of year FUND BALANCES (ACCUMULATED DEFICITS), at end of year 38,596 - - 74,686 60,393 42,337 - - 360,813 32,203 1,453,131 1,429,824 - - - - - 747,026 1,425,916 - - - - - 303,797 277,879 42,337 - 38,596 360,813 32,203 2,578,640 3,194,012 2,359 4,681,413 1,013 2( 23,424) 1 4,155,643 3,782,806 - 307,708 1,168,761 (476,000) - - - (476,990) (609,001) (476,000) - - - (169,282) 559,760 2,359 4,205,413 1,013 223,424 1 3,986,361 4,342,566 (2,330) 8,748,896 19,306 (22,053) - 9,394,977 5,052,411 $ 29 $ 12,954,309 $ 20,319 $ 245,477 $ 1 $13,381,338 $ 9,394,977 58 Kodiak Kodiak Totals Arts Tourism Transit Council Facilities Development Authority L.E.P.C. 1999 1998 REVENUES: Property taxes $ - $ - $ - $ $ - $ 483,809 $ 472,949 State sources - - - 35,095 32,204 737,541 1,156,884 Federal sources - - - - - 981 5,657 Land sale proceeds - 4,000,000 - - - 4,158,858 4,148,612 Licenses, permits, fees and other local revenues 44,696 - 39,609 102,294 - 313,790 663,984 Investments and property - 681,413 - - - 1,039,304 528,732 Total revenues 44,696 4,681,413 39,609 137,389 32,204 6,734,283 6,976,818 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 (ACCUMULATED DEFICITS), at beginning of year FUND BALANCES (ACCUMULATED DEFICITS), at end of year 38,596 - - 74,686 60,393 42,337 - - 360,813 32,203 1,453,131 1,429,824 - - - - - 747,026 1,425,916 - - - - - 303,797 277,879 42,337 - 38,596 360,813 32,203 2,578,640 3,194,012 2,359 4,681,413 1,013 2( 23,424) 1 4,155,643 3,782,806 - 307,708 1,168,761 (476,000) - - - (476,990) (609,001) (476,000) - - - (169,282) 559,760 2,359 4,205,413 1,013 223,424 1 3,986,361 4,342,566 (2,330) 8,748,896 19,306 (22,053) - 9,394,977 5,052,411 $ 29 $ 12,954,309 $ 20,319 $ 245,477 $ 1 $13,381,338 $ 9,394,977 58 F7 J I KODIAK ISLAND BOROUGH 1 1 1 1 1 1 1 r 1 L� EXIIQBIT 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, 1999 (with comparative totals for 199 1999 REVENUES: Property taxes State sources - Shared revenue Federal sources - Payment in lieu of taxes Licenses, permits, fees and other local revenue Investments and property Total revenues 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 SOURCES (USES): Operating transfers in (out) to other funds: Debt Service - Other Capital Projects - Borough Projects Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses FUND BALANCE, at beginning of year FUND BALANCE, at end of year Variance - favorable 1998 Budget Actual (unfavorable) Actual $ 223,000 $ 233,217 $ 10,217 $ 222,767 16,220 16,221 1 20,530 2,000 654 (1,346) 2,586 19,000 37,120 18,120 5,348 29,200 21,457 (7,743) 43,543 289,420 308,669 19,249 294,774 50,140 50,301 (161) 74,947 15,000 9,387 5,613 7,700 20,270 15,749 4,521 64,227 38,690 7,484 31,206 2,925 105,320 64,425 40,895 78,258 75,000 4,137 70,863 14,978 25,000 - 25,000 - 329,420 151,483 177,937 243,035 (40,000) 157,186 197,186 51,739 - - 11,198 (990) (990) (400,000) (990) (990) (388,802) $ (40,000) 156,196 $ 196,196 (337,063) 320,328 657,391 $ 476,524 $ 320,328 k 59 KODIAK ISLAND BOROUGH EXIIIBIT B4 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, 1999 (with comparative totals for 1998) 1999 REVENUES: Property taxes State sources Licenses, permits, fees and other local revenues Investments and property Total revenues EXPENDITURES: General and administration: Personnel 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 Variance - favorable 1998 Budget Actual (unfavorable) Actual $ 44,470 $ 48,491 $ 4,021 $ 44,178 430 3,974 3,544 542 9,000 9,017 17 9,012 3,000 6,818 3,818 6,201 56,900 68,300 11,400 59,933 1,700 689 1,011 - 3,000 - 3,000 - 44,130 34,818 9,312 31,247 8,070 3,799 4,271 1,723 56,900 39,306 $ - 28,994 17,594 32,970 $ 28,994 26,963 121,888 $ 150,882 60 94,925 $ 121,888 KODIAK ISLAND BOROUGH EXHIBIT B-5 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - KODIAK AIRPORT FIRE DISTRICT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUN 30, 1999 (with comparative totals for 1998) 1999 Variance - favorable 1998 Budget Actual (unfavorable) Actual REVENUES: Property taxes Investments and property Total revenues EXPENDITURES: General and administration: Contracted services Support goods and services Total expenditures Excess of revenues over expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year $ 30,350 $ 29,178 $ (1,172) $ 14,339 290 586 296 287 30,640 29,764 (876) 14,626 30,540 14,133 16,407 12,087 100 101 (1) 57 30,640 14,234 16,406 12,144 $ - 15,530 $ 15,530 2,482 2,482 - $ 18,012 $ 2,482 61 KODIAK ISLAND BOROUGH EX HIT B-6 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, 1999 (with comparative totals for 1998) 1999 Variance - favorable 1998 Budget Actual (unfavorable) Actual 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 (deficiency) of revenues over (under) expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year $ 19,795 $ 19,546 $ (249) $ 19,692 1,855 1,855 - 1,690 2,300 2,769 469 4,126 23,950 24,170 220 25,508 500 - 500 - 12,000 15,073 (3,073) 6,614 8,500 1,890 6,610 10,470 51,950 40,722 11,228 57 900 101 799 117 73,850 57,786 16,064 17,258 $ (49,900) (33,616) $ 16,284 77,245 $ 43,629 8,250 68,995 $ 77,245 62 1 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 other financing uses Deficiency of revenues under expenditures and other financing uses 76,890 96,020 19,130 121,605 3,990 3,536 454 3,655 75,000 KODIAK ISLAND BOROUGH 42,648 EXHIBIT B-7 75,000 68,154 6,846 47,607 35,000 SPECIAL REVENUE FUNDS (1,727) 19,815 1,600 FIRE AND ROAD SERVICE AREAS - SERVICE DISTRICT NO. 1 (24) 1,204 190,590 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS 48,197 143,578 (113,700) AND CHANGES IN FUND BALANCE 67,327 (21,973) BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 Variance - favorable 1998 Budget Actual (unfavorable) Actual REVENUES: Property taxes $ 55,500 $ 74,760 $ 19,260 $ 90,429 State sources - Shared Revenue 8,890 8,889 (1) 9,166 Federal sources - Payment in lieu of taxes 2,500 327 (2,173) 3,071 Investments and property 10,000 12,044 2,044 18,939 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 other financing uses Deficiency of revenues under expenditures and other financing uses 76,890 96,020 19,130 121,605 3,990 3,536 454 3,655 75,000 32,352 42,648 71,297 75,000 68,154 6,846 47,607 35,000 36,727 (1,727) 19,815 1,600 1,624 (24) 1,204 190,590 142,393 48,197 143,578 (113,700) (46,373) 67,327 (21,973) (25,820) (25,820) $ (113,700) (46,373) $ 67,327 (47,793) FUND BALANCE, at beginning of year FUND BALANCE, at end of year 266,546 314,339 $ 220,173 $ 266,546 63 KODIAK ISLAND BOROUGH EXHIBIT B-8 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 JUNE 30, 1999 (with comparative totals for 1998) 1999 REVENUES: Property taxes State sources Shared revenue Licenses, permits, fees and other local revenues Penalties and interest Total revenues EXPENDITURES: Capital outlay: Service district maintenance: Personnel services Snow removal/sanding Road grading/ditching Repairs and maintenance Service district maintenance Total expenditures Ecxess (deficiency) of revenues over (under) expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year Variance - favorable 1998 Budget Actual (unfavorable) Actual $ 80,670 $ 73,863 $ (6,807) $ 66,926 9,000 8,520 (480) 8,816 20,000 20,000 - 20,000 11,500 8,034 (3,466) 8,227 121,170 110,417 (10,753) 103,969 3,430 - 3,430 353 38,040 42,714 (4,674) 40,670 26,700 43,563 (16,863) 24,713 30,000 9,165 20,835 43,053 23,000 (221) 23,221 581 121,170 95,221 $ - 15,196 $ 15,196 25,949 109,370 123,105 $ 138,301 (5,401) 128,506 $ 123,105 64 KODIAK ISLAND BOROUGH EXHIBIT B-9 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, 1999 (with comparative totals for 1998) 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 Deficiency of revenues under expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year 5,470 5,674 204 5,906 - 1999 - 72 2,500 7,196 Variance - 3,852 1,970 1,040 favorable 1998 Budget Actual (unfavorable) Actual $ 4,600 $ 4,754 $ 154 $ 4,797 670 675 5 733 200 245 45 376 5,470 5,674 204 5,906 - - - 72 2,500 7,196 (4,696) 3,852 1,970 1,040 930 2,728 1,000 125 875 995 - 36 (36) 26 5,470 8,397 (2,927) 7,673 $ - (2,723) $ (2,723) (1,767) 4,259 6,026 $ 1,536 $ 4,259 65 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS- SERVICE AREA NO.2 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) EXHIBIT B-10 1999 Variance - favorable 1998 Budget Actual (unfavorable) Actual REVENUES: Investments and property $ 200 $ 159 $ (41) $ 173 Total revenues 200 159 (41) 173 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 200 - 200 - 200 - 200 - $ - 159 $ 159 173 3,338 $ 3,497 3,165 $ 3,338 66 1 KODIAK ISLAND BOROUGH EXIIIBIT B-11 SPECIAL REVENUE FUNDS MENTAL HEALTH CENTER STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND DEFICIT BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 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 Other Total expenditures Deficiency of revenues under expenditures OTHER FINANCING SOURCES: Operating transfers in from other funds: General Fund Debt Service - Other Net other financing sources Excess (deficiency) of revenues and other financing sources over (under) expenditures FUND DEFICIT, at beginning of year FUND DEFICIT, at end of year Budget Actual Variance - favorable 1998 (unfavorable) Actual $ - $ 2,677 $ 2,677 $ 532,863 382,287 1,166 167 2,677 2,677 916,483 - 161 (161) 814,020 - - 21,361 - - 28,452 - - 5,758 - - 6,959 249,837 (249,837) 174,712 249,998 (249,998) 1,051,262 (247,321) (247,321) (134,779) 439,445 100,088 539,533 $ - (247,321) $ (247,321) 404,754 (79,197) (483,951) $ (326,518) $ (79,197) 67 KODIAK ISLAND BOROUGH EXHIBIT B-12 SPECIAL REVENUE FUNDS COASTAL MANAGEMENT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND DEFICIT BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 Variance - favorable 1998 Budget Actual (unfavorable) Actual REVENUES: State sources - Grants $ 36,090 $ 36,090 $ - $ 31,120 Total revenues 36,090 36,090 - 31,120 EXPENDITURES: Community development department: CMG Special 10,000 10,000 - 5,000 Planning and zoning 26,090 26,090 - 26,126 Total expenditures 36,090 36,090 - 31,126 Deficiency of revenues under expenditures $ - - $ - (6) FUND DEFICIT, at beginning of year (147) (141) FUND DEFICIT, at end of year $ ( 147) $ (147) 68 KODIAK ISLAND BOROUGH EXIIIBIT B-13 SPECIAL REVENUE FUNDS CHILD CARE ASSISTANCE PROGRAM STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 REVENUES: State sources - Grants Total revenues EXPENDITURES: Health and sanitation department: Day care payments Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES: Operating transfers in from other fund: General Fund Variance - favorable 1998 Budget Actual (unfavorable) Actual $ 516,327 $ 497,522 $ (18,805) $ 375,182 516,327 497,522 (18,805) 375,182 518,234 497,028 518,234 497,028 (1,907) 494 21,206 374,654 21,206 374,654 2,401 528 - 3,000 Excess (deficiency) of revenues and other financing sources over (under) expenditures $ (1,907) FUND BALANCE, at beginning of year FUND BALANCE, at end of year 69 494 $ 2,401 9,142 $ 9,636 3,528 5,614 $ 9,142 KODIAK ISLAND BOROUGH EXHIBff B-14 SPECIAL REVENUE FUNDS WELFARE TO WORK PROGRAM STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 Variance- favorable 1998 Budget Actual (unfavorable) Actual REVENUES: State sources - Grants $ 114,400 $ 93,730 $ (20,670) $ - Total revenues 114,400 93,730 (20,670) - EXPENDITURES: General and administration: Personnel services Professional services Support goods & services Total expenditures Excess of revenues over expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year 5,720 5,720 - - 106,480 87,607 18,873 - 2,200 403 1,797 - 114,400 93,730 20,670 - 70 1 KODIAK ISLAND BOROUGH EXHIBIT B-15 SPECIAL REVENUE FUNDS LAND SALES STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND DEFICIT BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 REVENUES: Land sale proceeds Licenses, permits, fees and other local revenues: Gravel sales Other Total revenues EXPENDITURES: General and administration: Personnel services Contracted services Support goods and services Capital outlay Total expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES: Operating transfers in from other funds: Debt Service Other Net other financing sources Excess of revenues and other financing sources over expenditures FUND DEFICIT, at beginning of year FUND DEFICIT, at end of year Variance - favorable 1998 Budget Actual (unfavorable) Actual $ 129,010 $ 158,858 $ 29,848 $ 148,612 63,900 57,524 (6,376) 54,614 3,020 3,530 510 870 195,930 219,912 23,982 204,096 154,360 159,215 (4,855) 137,763 2,500 1,566 934 8,857 35,060 26,870 8,190 36,988 4,010 4,012 (2) 678 195,930 191,663 4,267 184,286 - 28,249 28,249 19,810 7,220 7,220 1,320 7,220 7,220 1,320 $ - 35,469 $ 35,469 21,130 (73,641) (94,771) $ (38,172) $ (73,641) 71 KODIAK ISLAND BOROUGH EXHIBIT B-16 I SPECIAL REVENUE FUNDS BUILDINGS AND GROUNDS STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND DEFICIT BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 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: Operating transfers in from other funds: General Fund Facilities Fund Debt Service Fund Other Net other financing sources Excess (deficiency) of revenues and other financing sources over (under) expenditures FUND DEFICIT, at beginning of year FUND DEFICIT, at end of year Variance- favorable 1998 Budget Actual (unfavorable) Actual $ 320,910 $ 303,634 $ (17,276) $ 357,643 320,910 303,634 (17,276) 357,643 114,640 105,056 9,584 346,360 361,213 (14,853) 10,260 6,729 3,531 81,180 49,298 31,882 r r 109,820 384,099 57,395 46,037 552,440 522,296 30,144 597,351 1 (231,530) (218,662) (12,868) (239,708) 119,770 119,770 - 195,030 180,000 180,000 - - - 718 718 499 299,770 300,488 718 195,529 $ 68,240 81,826 (171,569) $ (89,743) $ (12,150) (44,179) (127,390) $ (171,569) J 1 r F-J 72 KODIAK ISLAND BOROUGH EXHIBIT B-17 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, 1999 (with comparative totals for 1998) 73 1999 Variance - favorable 1998 Budget Actual (unfavorable) Actual REVENUES: Property taxes $ - $ - $ - $ 9,821 State sources - Shared revenue 90 89 (1) 157 Investments and property 2,000 2,145 145 2,486 Total revenues 2,090 2,234 144 12,464 EXPENDITURES: General and administration: Electricity 7,470 5,066 2,404 4,990 Capital outlay 3,000 - 3,000 - Total expenditures 10,470 5,066 5,404 4,990 Excess (deficiency) of revenues over expenditures $ (8,380) (2,832) $ 5,548 7,474 FUND BALANCE, at beginning of year 47,379 39,905 FUND BALANCE, at end of year $ 44,547 $ 47,379 73 KODIAK ISLAND BOROUGH EXHIBIT B-18 SPECIAL REVENUE FUNDS KODIAK ARTS COUNCIL STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE (DEFICIT) BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 REVENUES: Licenses, permits, fees and other local services: Reimbursement from Kodiak Arts Council Total revenues EXPENDITURES: General administration: Personnel services Fringe benefits Support goods and services Total expenditures Excess (deficiency) of revenues over (under) expenditures Variance - favorable 1998 Budget Actual (unfavorable) Actual $ 69,610 $ 44,696 $ (24,914) $ 66,028 15,810 6,620 9,190 14,695 69,610 44,696 (24,914) 66,028 52,400 34,736 17,664 52,395 15,810 6,620 9,190 14,695 1,400 981 419 1,268 69,610 42,337 27,273 68,358 $ - 2,359 $ 2,359 (2,330) FUND BALANCE (DEFICIT), at beginning of year (2,330) FUND BALANCE (DEFICIT), at end of year $ 29 $ (2,330) 74 KODIAK ISLAND BOROUGH EXHIBIT B-19 SPECIAL REVENUE FUNDS FACILITIES STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 Excess of revenues over expenses 476,000 4,681,413 4,205,413 OTHER FINANCING SOURCES (USES): Operating transfers in (out) from (to) other funds: Capital Projects - Borough projects (296,000) Buildings and grounds (180,000) Kodiak Fisheries Research Center - Net other financing sources (uses) (476,000) Excess of revenues and other financing sources over expenditures and other financing uses FUND BALANCE, at beginning of year FUND BALANCE, at end of year (296,000) - (180,000) - (476,000) - 4,085,398 (185,000) 420,000 235,000 $ - 4,205,413 $ 4,205,413 4,320,398 8,748,896 $ 12,954,309 4,428,498 $ 8,748,896 75 Variance - favorable 1998 Budget Actual (unfavorable) Actual REVENUES: Land sale proceeds: Proceeds from the sale of Shuyak Island $ 4,000,000 $ 4,000,000 $ - $ 4,000,000 Investments and property 726,000 681,413 (44,587) 85,398 Total revenues 4,726,000 4,681,413 (44,587) 4,085,398 EXPENDITURES: General and administration 4,250,000 - 4,250,000 - Total expenditures 4,250,000 - 4,250,000 - Excess of revenues over expenses 476,000 4,681,413 4,205,413 OTHER FINANCING SOURCES (USES): Operating transfers in (out) from (to) other funds: Capital Projects - Borough projects (296,000) Buildings and grounds (180,000) Kodiak Fisheries Research Center - Net other financing sources (uses) (476,000) Excess of revenues and other financing sources over expenditures and other financing uses FUND BALANCE, at beginning of year FUND BALANCE, at end of year (296,000) - (180,000) - (476,000) - 4,085,398 (185,000) 420,000 235,000 $ - 4,205,413 $ 4,205,413 4,320,398 8,748,896 $ 12,954,309 4,428,498 $ 8,748,896 75 KODIAK ISLAND BOROUGH EXHIBIT B-20 SPECIAL REVENUE FUNDS TOURISM DEVELOPMENT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 Variance - favorable 1998 Budget Actual (unfavorable) Actual REVENUES: Licenses, permits, fees and other local revenues Investments and property Total revenues EXPENDITURES: Community development: Contracted services Contributions Support goods and services Total expenditures Excess of revenues over expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year $ 33,500 $ 39,609 $ 6,109 $ 37,273 100 - (100) - 33,600 39,609 6,009 37,273 - 10,000 (10,000) - 33,600 28,600 5,000 29,100 - (4) 4 167 33,600 38,596 (4,996) 29,267 $ - 1,013 $ 1,013 8,006 19,306 11,300 $ 20,319 $ 19,306 76 1 1 KODIAK ISLAND BOROUGH EXHIBIT B-21 1 1 SPECIAL REVENUE FUNDS KODIAK TRANSIT AUTHORITY STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE (DEFICIT) BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1 1999 Variance - Budget Actual favorable (unfavorable) 1998 Actual REVENUES: City of Kodiak subsidy $ 40,000 $ 56,400 $ 16,400 $ 73,095 State sources - grants 100,000 35,095 (64,905) 150,685 Federal sources - grants 40,000 - (40,000) - Licences, permits, fees and other local revenues 130,000 45,894 (84,106) 15,457 Total revenues 310,000 137,389 (172,611) 239,237 EXPENDITURES: General and administration: Transportation services 330,000 321,474 8,526 141,198 Support goods and services 30,000 12,879 17,121 13,148 Capital outlay 10,000 26,460 (16,460) 106,944 Total expenditures 370,000 360,813 9,187 261,290 Deficiency of revenues under expenditures $ (60,000) (223,424) _L (l (22,053) FUND BALANCE (DEFICIT), at beginning of year (22,053) - d of year FUND DEFICIT, at en y $ (245,477) $ (22,053) 1 KODIAK ISLAND BOROUGH EXHIBIT B-22 SPECIAL REVENUE FUNDS L.E.P.0 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 REVENUES: State sources: L.E.P.C.grant Total revenues EXPENDITURES: General administration: Personnel services Contracted services 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 1998 Budget Actual (unfavorable) Actual $ 50,000 $ 32,204 $ (17,796) $ 25,400 50,000 32,204 (17,796) 25,400 - 1,049 (1,049) - 23,600 29,050 (5,450) 20,642 26,400 2,104 24,296 4,758 50,000 32,203 17,797 25,400 $ - 1 $ 1 - $ 1 78 i� FJ F DEBT SERVICE FUNDS 0 t C 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 EDIT C -1 DEBT SERVICE FUNDS COMBINING BALANCE SHEET JUNE 30, 1999 (with comparative totals for 1998) Totals Bonds Other 1999 1998 ASSETS Equity in central treasury $ 244 $ - $ 244 $ 589,247 Due from State of Alaska 16,506 - 16,506 15,833 Due from other funds 333,826 122,141 455,967 - TOTAL $ 350,576 $ 122,141 $ 472,717 $ 605,080 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ 10,417 $ - $ 10,417 $ 10,417 Total liabilities 10,417 - 10,417 10,417 FUND BALANCES: Reserved for subequent year expenditures 221,230 - 221,230 - Unreserved 118,929 122,141 241,070 594,663 TOTAL $ 350,576 $ 122,141 $ 472,717 $ 605,080 79 n KODIAK ISLAND BOROUGH EXHIBIT C -2 I DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) REVENUES: Investments and property: Interest income Other income Total revenues EXPENDITURES: Debt service: Principal Interest Fiscal agent fees Total expenditures Deficiency of revenues under expenditures OTHER FINANCING SOURCES (USES): Proceeds from issuance of bonds Accrued interest Discount on bonds Purchase of restricted escrow Underwriters discount MBIA insurance Insurance Accrued interest Other Operating transfer in from component unit Operating transfers in from other funds Operating transfers out to other funds Total 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 Totals Bonds Other 1999 1998 $ - $ $ - $ 14,840 1,834 - 1,834 - 1,834 - 1,834 14,840 1,915,833 - 1,915,833 1,660,833 852,040 - 852,040 1,139,287 1,612 - 1,612 2,079 2,769,485 - 2,769,485 2,802,199 (2,767,651) - (2,767,651) (2,787,359) 9,740,000 - 9,740,000 - 24,236 - 24,236 - (22,681) - (22,681) - (9,564,676) - (9,564,676) - (17,356) - (17,356) - (65,266) - (65,266) - (68,188) - (68,188) - (24,237) - (24,237) - (1,832) - (1,832) - 1,650,598 - 1,650,598 1,651,332 1,024,270 990 1,025,260 1,033,907 - (40,570) (40,570) (113,105) 2,674,868 (39,580) 2,635,288 2,572,134 (92,783) (39,580) (132,363) (215,225) 432,942 161,721 594,663 809,888 $ 340,159 $ 122,141 $ 462,300 1 $ 594,663 t 1 C L l- I 80 1 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, 1999 (with comparative totals for 1998) 1999 variance- favorable 1998 Budget Actual (unfavorable) Actual REVENUES: Investments and property: Interest income Other income Total revenues EXPENDITURES: Debt service: Principal Interest Fiscal agent fees General and administrative $ 10,000 Total expenditures $ (10,000) Excess (deficiency) of revenues ' under expenditures 1,834 OTHER FINANCING SOURCES (USES): 10,000 Proceeds from issuance of bonds (8,166) Accrued interest - Discount on bonds (17,356) Purchase of restricted escrow 1,923,340 Underwriters discount 7,507 MBIA insurance 885,430 Insurance 33,390 Accrued interest Other 10,000 Operating transfer in from component unit 8,388 Operating transfers in from other funds 36,400 Net other financing sources 36,400 Excess (deficiency) of revenues and other 2,855,170 financing sources over (under) expenditures 85,685 and other financing uses 1,024,270 FUND BALANCE, at beginning of year - FUND BALANCE, at end of year $ 10,000 $ - $ (10,000) $ 14,840 - 1,834 1,834 - 10,000 1,834 (8,166) 14,840 - (17,356) (17,356) - 1,923,340 1,915,833 7,507 1,660,833 885,430 852,040 33,390 1,139,287 10,000 1,612 8,388 2,079 36,400 - 36,400 - 2,855,170 2,769,485 85,685 2,802,199 (2,845,170) (2,767,651) 77,519 (2,787,359) 9,740,000 9,740,000 - 24,236 24,236 - - (22,681) (22,681) - - (9,564,676) (9,564,676) - - (17,356) (17,356) - - (65,266) (65,266) - - (68,188) (68,188) - - (24,237) (24,237) - (1,832) (1,832) - 1,592,480 1,650,598 58,118 1,651,332 1,024,270 1,024,270 - 1,019,400 2,616,750 2,674,868 58,118 2,670,732 $ (228,420) (92,783) $ 135,637 (116,627) 432,942 549,569 $ 340,159 $ 432,942 81 KODIAK ISLAND BOROUGH EXHWIT C -4 DEBT SERVICE FUNDS OTHER STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 EXPENDITURES: Employee benefits Deficiency of revenues under expenditures OTHER FINANCING SOURCES (USES): Operating transfers in from other funds Operating transfer out to other funds Net other financing sources (uses) Variance - favorable 1998 Budget Actual (unfavorable) Actual $ 9,000 $ - $ 9,000 $ (9,000) - (9,000) - 9,000 990 (8,010) 14,507 (40,570) (40,570) (113,105) 9,000 (39,580) (48,580) (98,598) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing sources $ - FUND BALANCE, at beginning of year FUND BALANCE, at end of year 82 (39,580) $ (57,580) 161,721 $ 122,141 (98,598) 260,319 $ 161,721 1 1 n CAPITAL PROJECTS 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. i� L 1 [1 LI KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET JANE 30, 1999 (with comparative totals for 1998) ASSETS Equity in central treasury Temporary investments Receivables: State of Alaska Accrued interest Due from other funds TOTAL LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable Retainages payable Due to other funds Total liabilities FUND BALANCES: Fund Balances: Reserved for encumbrances Unreserved: Undesignated Total fund balances TOTAL Various School Hospital Borough Bond Bond Projects Improvements Improvements 284,569 $ 284,569 16,253 - $ 16,253 $ - $ 13,862 $ - $ - 3,706 - - 61,774 16,253 - 79,342 16,253 - 51,159 - - 154,068 - - 205,227 - - $ 284,569 $ 16,253 $ - 84 EIHIIBIT D -1 Kodiak State Fisheries Capital Research Center Grants Totals 1999 1998 $ - $ - $ - $ 1,037,382 6,003,810 306,427 306,427 346,801 - - 47,660 - 300,822 344,141 $ - $ 306,427 $ 607,249 $ 7,779,794 $ 21,769 $ 35,631 $ 1,805,952 110,120 113,826 790,350 108,724 186,751 1,015,000 240,613 336,208 3,611,302 587,942 639,101 4,593,097 (522,128) (368,060) (424,605) 65,814 271,04I 4,168,492 $ - $ 306,427 $ 607,249 $ 7,779,794 85 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES (ACCUMULATED DEFICITS) YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) Various School Borough Bond Projects Improvements REVENUES: State sources $ - $ - Federal sources Licenses, permits, fees and other local revenues Investments and property Total revenues EXPENDITURES: Capital improvements: Schools General Total expenditures Deficiency of revenues under expenditures OTHER FINANCING SOURCES (USES): Operating transfers in from other funds Operating transfers out to other funds Operating transfers out to component unit Proceeds from issuance of long -term debt Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources under expenditures and other financing uses FUND BALANCES (ACCUMULATED DEFICITS), at beginning of year Residual equity transfers out FUND BALANCES, at end of year 10,800 - 10,800 - 958,752 5,141 245,392 - 1,204,144 5,141 (1,193,344) (5,141) 599,480 188,393 (188,393) - 411,087 188,393 (782,257) 183,252 987,484 (183,252) $ 205,227 $ - 86 EXHIBIT D -2 Hospital Kodiak State 963,893 668,790 Bond Fisheries Capital Totals 7,768,730 Improvements Research Center Grants 1999 1998 $ - $ - $ 787,028 $ 787,028 $ 3,687,582 - - 296,494 296,494 3,080,735 - - - 10,800 254,310 - 135,433 - 135,433 190,677 - 135,433 1,083,522 1,229,755 7,213,304 - - - 963,893 668,790 13,750 2,492,362 1,415,131 4,166,635 7,768,730 13,750 2,492,362 1,415,131 5,130,528 8,437,520 (13,750) (2,356,929) (331,609) (3,900,773) (1,224,216) - - 418,869 1,206,742 1,731,720 - (786,000) - (974,393) (1,300,000) - - - - (60,000) - - 5,249 5,249 99,698 - (786,000) 424,118 237,598 471,418 (13,750) (3,142,929) 92,509 (3,663,175) (752,798) 32,540 3,358,415 (26,695) 4,168,492 4,921,290 (18,790) (215,486) - (234,276) - $ - $ - $ 65,814 $ 271,041 $ 4,168,492 87 88 1 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS , FOR THE YEAR ENDED JUNE 30, 1999 APPROPRIATIONS ' TOTAL NO. PROJECT STATUS PRIOR 1999 APPROPRIATIONS Capital Projects - Education: 39 420 -501 Peterson Elementary Open $ 751,340 $ 186,240 $ 937,580 78 410 -462 High School Library Roof Open 35,000 - 35,000 128 410 -653 Peterson Addition (Match) Open 659,450 510,000 1,169,450 130 410 -655 East Elementary Doorways Open 4,200 - 4,200 139 430 -639 Peterson Addition (Grant) Open 141,603 - 141,603 152 410 -668 High School Roof Design Open 72,800 - 72,800 153 410 -669 Middle School Gym Roof Complete 10,000 - 10,000 , 155 410 -671 Chiniak School Exit Roof Complete 5,700 - 5,700 156 410 -672 Port Lions Basketball Ct. Complete 24,000 9,000 33,000 168 430 -647 Peterson Match Grant Open 129,230 - 129,230 179 430 -689 Peterson Matching #3 Open 130,000 - 130,000 Total Education 1,963,323 705,240 2,668,563 , Capital Projects - Health: 95 425 -540 Hospital Remodel Complete 18,007,244 - 18,007,244 121 410 -647 New Ambulance Purchase Open 18,000 6,000 24,000 166 425 -541 Hospital Renovation Complete - - - Total Health 18,025,244 6,000 18,031,244 ' Capital Projects- Utilities: 182 410 -692 State Fair & Rodeo Water Open 25,000 - 25,000 , Total Utility 25,000 - 25,000 Capital Projects - Other: P J ; 410 -400 Undesignated Projects Open - - - 79 410 -463 Crab Analog Report Open 10,000 - 10,000 , 85 410 -471 Village Metals Removal Open 150,000 - 150,000 105 410 -482 Anton Larsen Dock Open 140,000 - 140,000 114 410- 642 State Airport Improvements Open 11,000 - 11,000 115 410 -643 Chiniak Tsunami Siren Open 30,000 - 30,000 117 410 -645 Heliopad Striping Open 3,000 - 3,000 ' 124 426 -801 Kodiak Fisheries Research Center Complete 20,850,000 (9,300,000) 11,550,000 133 410 -658 Red Cross Building Repairs Open 12,000 - 12,000 ' 88 1 EXHMIT D -3 EXPENDITURES ENCUMBRANCES TOTAL UNEXPENDED CURRENT UNENCUMBERED PRIOR 1999 EXPENDITURES BALANCE ENCUMBRANCES BALANCE $ 932,441 $ 5,141 $ 937,582 $ 31,957 3,043 35,000 251,042 915,468 1,166,510 111,203 30,399 141,602 3,804 2,073 5,877 - 9,980 9,980 2,513 38 2,551 18,735 14,541 33,276 125,511 3,719 129,230 - 130,000 130,000 (2) $ - $ (2) 2,940 4,959 (2,019) 4,200 - 4,200 1 - 1 66,923 - 66,923 20 - 20 3,149 - 3,149 (276) - (276) 1,477,206 1,114,402 2,591,608 76,955 4,959 71,996 13,880,293 4,254 13,884,547 4,122,697 - 4,122,697 - - - 24,000 - 24,000 4,126,952 9,497 4,136,449 (4,136,449) - (4,136,449) 18,007,245 13,751 18,020,996 10,248 - 10,248 - 8,239 8,239 16,761 - 16,761 - 8,239 8,239 16,761 - 16,761 3,006 54,503 57,509 (57,509) - (57,509) - 10,000 10,000 - - - 111,415 - 111,415 38,585 - 38,585 134,179 3,611 137,790 2,210 - 2,210 60 - 60 10,940 - 10,940 28,769 - 28,769 1,231 - 1,231 - - - 3,000 - 3,000 9,428,174 2,492,361 11,920,535 (370,535) - (370,535) 6,777 - 6,777 5,223 - 5,223 (continued) 89 1 KODIAK ISLAND BOROUGH I CAPITAL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS ' FOR THE YEAR ENDED JUNE 30, 1999 APPROPRIATIONS , PROJECT TOTAL NO. PROJECT STATUS PRIOR 1999 APPROPRIATIONS Capital Projects - Other (continued) : 142 430 -642 Clean Water Fund/Karluk Open $ 50,000 $ - $ 50,000 143 430 -643 EVOSTC Project Open 250,000 - 250,000 145 410 -662 Computer Software Acquis. Open 590,000 - 590,000 146 410 -663 BMX Bike Trail Open 55,000 - 55,000 158 410 -674 Fire Service Study Open 20,000 11,055 31,055 159 410 -675 Borough Parks Open 26,500 - 26,500 164 430 -645 Waste Management Imp Open 1,630,000 227,100 1,857,100 165 430 -646 Landfill Closeout Open 1,000,000 2,000,000 3,000,000 169 430 -649 Clean Water Karluk Open 350,000 - 350,000 170 410 -680 Bayside Fuel Tank Removal Open 5,000 - 5,000 171 410 -681 Womens Bay Tank Removal Complete 32,000 10,000 42,000 172 410 -682 Nixon Ranch Road Open 23,000 - 23,000 173 410 -683 Bayside Classroom Add Open 75,000 - 75,000 174 410 -684 Bayside Storage/Bay Add Open 325,000 - 325,000 175 430 -685 Anton Larsen Bay Trail Complete 70,000 - 70,000 176 430 -686 Isl Lake Trail Ext Complete 25,000 - 25,000 177 430 -687 Anton Larsen Boat Ramp Open 400,000 - 400,000 178 430 -688 Karluk Clinic Open 214,500 10,000 224,500 181 430 -691 Isl Lake Crk Fish Passage Open 10,000 - 10,000 183 410 -693 School Freezer Relocation Complete 40,000 - 40,000 184 430 -694 Oil Spill Response Equipment Open - 400,000 400,000 Transfers Out - Fund 426 Open - - - Transfers Out - Fund 410 Open - - - Total - Capital Projects Other 26,397,000 (6,641,845) 19,755,155 1 11 Total All Capital Projects $ 46,410,567 $ (5,930,605) $ 40,479,962 ' 90 EXHIBIT D -3, continued EXPENDITURES ENCUMBRANCES TOTAL UNEXPENDED CURRENT UNENCUMBERED PRIOR 1999 EXPENDITURES BALANCE ENCUMBRANCES BALANCE $ 23,192 $ - $ 23,192 $ 26,808 $ - $ 26,808 228,007 10,769 238,776 11,224 - 11,224 384,729 47,052 431,781 158,219 - 158,219 13,088 2,854 15,942 39,058 46,200 (7,142) - 27,980 27,980 3,075 - 3,075 3,031 - 3,031 23,469 - 23,469 - - - 1,857,100 - 1,857,100 223,461 1,205,831 1,429,292 1,570,708 494,097 1,076,611 82,083 2,166 84,249 265,751 - 265,751 - - - 5,000 - 5,000 1,794 38,873 40,667 1,333 - 1,333 200 - 200 22,800 - 22,800 12,749 35,450 48,199 26,801 - 26,801 - 20 20 324,980 - 324,980 2,585 44 2,629 67,371 - 67,371 981 22,584 23,565 1,435 - 1,435 - 7,979 7,979 392,021 93,845 298,176 6,211 1,643 7,854 216,646 - 216,646 - - - 10,000 - 10,000 - 30,419 30,419 9,581 - 9,581 - - - 400,000 - 400,000 6,804 786,000 792,804 (792,804) - (792,804) - 188,393 188,393 (188,393) - (188,393) 10,701,295 4,968,532 15,669,827 4,085,328 634,142 3,451,186 $ 30,185,746 $ 6,104,924 $ 36,290,670 $ 4,189,292 $ 639,101 $ 3,550,191 91 1 F 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. 1 1 n � 1 1 ENTERPRISE FUNDS The Municipal Solid Waste Collection and Disposal Fund accounts for the collection and disposal of solid waste and recycling services for the Kodiak Island Borough. The Hospital Facilities Fund accounts for rents on the Borough owned hospital; hospital related state revenue sharing; and other hospital related revenue. In turn, it purchases hospital equipment and makes debt service payments on hospital related debt. The 911 Service Fund accounts for funds collected from phone charges and pays for a 911 emergency system. The Kodiak Fisheries Research Center Fund accounts for rents and expenses on the Borough owned Kodiak Fisheries Research Center. The four tenants: NOAA, Alaska Department of Fish & Game, National Park Service and University of Alaska, Fairbanks pay lease funds to participate in this multi- agency research facility committed to the preservation of the North pacific marine ecosystem and resources. KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING BALANCE SHEET JUNE 30, 19 99 (with comparative totals for 1998) Municipal Kodiak Solid Waste Fisheries Collection and Hospital 911 Research Totals Disposal Facilities Services Center 1999 1998 ASSETS CURRENT ASSETS: Equity in central treasury $ 100 $ - $ - $ - $ 100 $ 54,767 Temporary investments 451,170 645,588 - 981,991 2,078,749 89,871 Accrued interest receivable - - - 1,109 1,109 - Customer receivables 243,209 - - - 243,209 225,259 Due from other funds 61,019 18,790 11,888 51,546 143,243 790,000 Inventories - 277,005 - - 277,005 277,007 Total current assets 755,498 941,383 11,888 1,034,646 2,743,415 1,436,904 RESTRICTED ASSETS: Cash with fiscal agent - 218,013 - - 218,013 208,203 Temporary investments - - - - - 139,520 Total restricted assets - 218,013 - - 218,013 347,723 FIXED ASSETS: Unclassified utility plant in service 2,205,383 - - - 2,205,383 2,205,383 Land and improvements - 409,069 - - 409,069 32,266 Buildings - 22,289,005 - 18,804,754 41,093,759 4,583,308 Machinery and equipment 840,492 5,410,563 - 1,156,385 7,407,440 6,177,412 Work in process 653,323 3,910,612 - - 4,563,935 11,906,168 3,699,198 32,019,249 - 19,961,139 55,679,586 24,904,537 Less accumulated depreciation (1,056,480) (6,085,449) - (3,987) (7,145,916) (6,575,685) Net fixed assets 2,642,718 25,933,800 - 19,957,152 48,533,670 18,328,852 1 F1 TOTAL $ 3,398,216 $27,093,196 $ 11,888 $ 20,991,798 $ 51,495,098 $ 20,113,479 94 EXHIBIT E -1 Net contributions in aid of construction 2,283,920 17,956,116 - 11,920,540 32,160,576 1,684,937 Contributed capital - 5,166,717 - 215,486 5,382,203 5,147,927 Retained earnings (accumulated deficits), unreserved (1,426,999) 266,434 3,658 604,881 (552,026) (1,915,240) Total fund equities 856,921 23,389,267 3,658 12,740,907 36,990,753 4,917,624 TOTAL $ 3,398,216 $27,093,196 $ 11,888 $20,991,798 $51,495,098 $20,113,479 95 Municipal Kodiak Solid Waste Fisheries Collection and Hospital 911 Research Totals Disposal Facilities Services Center 1999 1998 LIABILITIES AND FUND EQUITIES CURRENT LIABILITIES: Accounts payable $ 163,442 $ - $ 8,230 $ 70,163 $ 241,835 $ 258,400 Accrued expenses 19,584 - - 5,555 25,139 20,455 Current portion of note payable - 556,625 - - 556,625 523,349 Current portion of lease obligations - 376,984 - - 376,984 230,973 Deferred revenues - 60,000 - - 60,000 60,000 Due to City of Kodiak - - - - - 38,583 Due to other funds - 178,176 - 370,173 548,349 259,141 Total current liabilities 183,026 1,171,785 8,230 445,891 1,808,932 1,390,901 NONCURRENT LIABILITIES: Notes payable 418,869 1,891,361 - - 2,310,230 2,450,303 Capital lease obligations - 640,783 - - 640,783 1,154,520 Long -term interfund borrowings - - - 7,805,000 7,805,000 8,000,000 Accrual for landfill closure and postclosure costs 1,939,400 - - - 1,939,400 2,200,131 Total liabilities 2,541,295 3,703,929 8,230 8,250,891 14,504,345 15,195,855 FUND EQUITIES: Contributions in aid of construction: State of Alaska 3,136,796 - - 3,000,000 6,136,796 2,483,473 Other 19,990 17,956,116 - 8,920,540 26,896,646 19,990 3,156,786 17,956,116 - 11,920,540 33,033,442 2,503,463 Accumulated amortization (872,866) - - - (872,866) (818,526) Net contributions in aid of construction 2,283,920 17,956,116 - 11,920,540 32,160,576 1,684,937 Contributed capital - 5,166,717 - 215,486 5,382,203 5,147,927 Retained earnings (accumulated deficits), unreserved (1,426,999) 266,434 3,658 604,881 (552,026) (1,915,240) Total fund equities 856,921 23,389,267 3,658 12,740,907 36,990,753 4,917,624 TOTAL $ 3,398,216 $27,093,196 $ 11,888 $20,991,798 $51,495,098 $20,113,479 95 KODIAK ISLAND BOROUGH Municipal Solid Waste Collection and Disposal ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS (ACCUMULATED DEFICITS) YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) OPERATING REVENUES: Solid waste collection Solid waste disposal State sources - revenue sharing Customer charges Rents and royalties Donations PKIMC gain Lease proceeds Other OPERATING EXPENSES: Personnel services Solid waste collection Refuse disposal Contracted services Repairs and maintenance Landfill closure and postclosure costs Depreciation General and administration Medicaid refund Telephone services Recycling services Contributions Operating income (loss) OTHER INCOME (EXPENSES): Interest income Interest expense Loss on sale of assets Net income (loss) TRANSFER (TO) FROM OTHER FUNDS: Operating transfers in from other funds Operating transfers out to other funds Amortization of contributions in aid of construction Increase in retained earnings Accumulated deficits at beginning of year Retained earnings (accumulated deficits) at end of year EXIIIBIT E -2 I r F] Kodiak Fisheries Hospital 911 Research Totals Facilities Services Center 1999 1998 $ 1,638,078 $ - $ - $ - $ 1,638,078 $ 1,539,677 855,554 - - - 855,554 870,753 - 67,327 - - 67,327 70,751 - - 75,951 - 75,951 51,270 - - - 995,891 995,891 - - 91,900 - - 91,900 - - 420,613 - - 420,613 - 54,340 720,000 - - 720,000 720,000 7,740 - - - 7,740 26,742 2,501,372 1,299,840 75,951 995,891 4,873,054 3,279,193 379,496 - - 105,760 485,256 349,450 1,131,856 - - - 1,131,856 1,163,688 139,565 - - - 139,565 - 307,634 - - - 307,634 288,120 42,891 - - - 42,891 33,415 (260,731) - - - (260,731) 227,512 104,201 545,084 - 3,987 653,272 697,911 181,953 13,810 - 261,964 457,727 196,962 - 2,200 - - 2,200 163,140 - - 31,379 - 31,379 185,776 64,110 - - - 64,110 68,009 23,524 - - - 23,524 50,536 2,114,499 561,094 31,379 371,711 3,078,683 3,424,519 386,873 738,746 44,572 624,180 1,794,371 (145,326) f 1 i 1,296 18,948 - 842 21,086 244,265 - (313,231) - (560,000) (873,231) (395,151) - (483) - - (483) (10,940) 388,169 443,980 44,572 65,022 941,743 (307,152) - - - 786,000 786,000 1,300,000 (418,869) - - - (418,869) (420,000) 54,340 - - - 54,340 74,239 23,640 443,980 44,572 851,022 1,363,214 647,087 (1,450,639) (177,546) (40,914) (246,141) (1,915,240) (2,562,327) i $ (1,426,999) $ 266,434 $ 3,658 $ 604,881 $ (552,026) $ (1,915,240) 1 96 1 1 r; t 11 I I t ADJUSTMENTS TO RECONCILE KODIAK ISLAND BOROUGH EXHIBIT E -3 ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) PROVIDED BY (USED IN) Municipal Kodiak Solid Waste Fisheries OPERATING ACTIVITIES: Collection an Hospital 911 Research Totals Disposal Facilities Services Center 1999 1998 OPERATING INCOME (LOSS) $386,873 $ 738,746 $44,572 $ 624,180 $ 1,794,371 $ (145,326) r; t 11 I I t ADJUSTMENTS TO RECONCILE OPERATING LOSS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Depreciation 104,201 545,084 - 3,987 653,272 697,911 Loss on disposal of fixed assets - - - - - 10,940 Net assets received from residual equity transfer - - - I,486 1,486 - Changes in assets and liabilities: Interest receivable on investments - - - (1,109) (1,109) - Customer receivables (17,950) - - - (17,950) 37,955 Due to /from other funds 228,981 659,386 (24,888) 91,486 954,965 (1,375,859) Inventories - 2 - - 2 _ Accounts payable 3,047 (98,005) 8,230 70,163 (16,565) (1,672) Deferred revenues - - - - - 60,000 Accrual for landfill closure and postclosure costs (260,731) - - - (260,731) 215,708 Due to the City of Kodiak - - (38,583) - (38,583) 38,583 Other accrued liabilities (871) - - 5,555 4,684 1,967 Total adjustments 56,677 1,106,467 (55,241) 171,568 1,279,471 (314,467) Net cash provided by (used in) operating activities 443,550 1,845,213 (10,669) 795,748 3,073,842 (459,793) CASH FLOWS FROM NON - CAPITAL AND RELATED FINANCING ACTIVITIES: Operating transfers out to other funds (418,869) - - - (418,869) (420,000) Operating transfers in from Hospital - - - - Component unit - 1,300,000 Operating transfers in from other funds - - - 786,000 786,000 - Net cash provided by (used in) non - capital and related financing activities (418,869) - - 786,000 367,131 880,000 C� f (continued) 97 KODIAK ISLAND BOROUGH EXHIBIT E -3, continued ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) Municipal Kodiak Solid Waste Fisheries Collection an Hospital 911 Research Totals Disposal Facilities Services Center 1999 1998 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets $ (3,862) $ (265,343) $ - $ (40,599) $ (309,804) $(9,545,335) Interest paid on notes payable, capital leases and interfund borrowing - (313,231) - (560,000) (873,231) (395,151) Proceeds from issuance of long -term interfund borrowing - - - - - 8,000,000 Proceeds from issuance of note payable 418,869 - - - 418,869 - Principal payments on notes payable - (525,666) - - (525,666) (489,746) Principal payments on capital lease obligations - (367,726) - - (367,726) (352,273) Contributed capital received from private trusts - - - - - 210,800 Net cash provided by (used in) capital and related financing activities 415,007 (1,471,966) - (600,599) (1,657,558) (2,571,705) CASH FLOWS FROM INVESTING ACTIVITIES: Changes in restricted assets: Deductions from (additions to) restricted cash - (9,810) - - (9,810) 1,434,419 Deductions from restricted investments - 139,520 - - 139,520 11,248 Interest and dividends on investments 1,296 18,948 - 842 21,086 244,265 Purchases of investments (451,170) (555,717) - (981,991) (1,988,878) - Maturities of investments - - - - - 387,057 Net cash provided by (used in) investing activities (449,874) (407,059) - (981,149) (1,838,082) 2,076,989 Net change in cash and cash equivalents (10,186) (33,812) (10,669) - (54,667) (74,509) CASH AND CASH EQUIVALENTS, at beginning of year 10,286 33,812 10,669 - 54,767 129,276 CASH AND CASH EQUIVALENTS, at end of year $ 100 $ - $ - $ - $ 100 $ 54,767 NONCASH CAPITAL AND RELATED FINANCING ACTIVITES: Contributions in aid of construction received $653,323 $17,956,116 $ - $11,920,540 $30,529,979 $ - Residual equity transfers - 18,790 - 215,486 234,276 - Contributions in aid of construction received from private sources - - - - - 849,415 $653,323 $17,974,906 $ - $12,136,026 $30,764,255 $ 849,415 98 1 I KODIAK ISLAND BOROUGH EXHIBIT E -4 LIABILITIES AND FUND EOUITY CURRENT LIABILITIES: Accounts payable Accrued expenses Total current liabilities NONCURRENT LIABILITIES: Landfill closure and postclosure costs Note payable 163,442 MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FUND BALANCE SHEETS JUNE 30, 1999 AND 1998 19,584 20,455 183,026 180,850 1999 1998 2,283,920 ASSETS (1,426,999) (1,450,639) 856,921 CURRENT ASSETS: Net contributions in aid of construction Equity in central treasury $ 100 $ 10,286 Temporary investments 451,170 - Customer receivables 243,209 225,259 Due from other funds 61,019 290,000 Total current assets 755,498 525,545 FIXED ASSETS: Unclassified utility plant in service 2,205,383 2,205,383 Equipment 840,492 837,052 Work -in- process 653,323 - Less accumulated depreciation (1,056,480) (952,701) Net fixed assets 2,642,718 2 089 734 TOTAL $ 3,398,216 $ 2,615,279 LIABILITIES AND FUND EOUITY CURRENT LIABILITIES: Accounts payable Accrued expenses Total current liabilities NONCURRENT LIABILITIES: Landfill closure and postclosure costs Note payable 163,442 $ 160,395 19,584 20,455 183,026 180,850 1,939,400 2,200,131 418,869 - 2,358,269 2,200,131 2,541,295 2,380,981 3,136,796 Total noncurrent liabilities 19,990 FUND EQUITY: 3,156,786 Contributions in aid of construction: (872,866) State of Alaska 2,283,920 Other (1,426,999) (1,450,639) 856,921 Accumulated amortization Net contributions in aid of construction Accumulated deficits, unreserved Total fund equity TOTAL 1,939,400 2,200,131 418,869 - 2,358,269 2,200,131 2,541,295 2,380,981 3,136,796 2,483,473 19,990 19,990 3,156,786 2,503,463 (872,866) (818,526) 2,283,920 1,684,937 (1,426,999) (1,450,639) 856,921 234,298 $ 3,398,216 $ 2,615,279 1 99 L KODIAK ISLAND BOROUGH MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN ACCUMULATED DEFICITS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) _ EXHIBIT E-5 r 1999 Variance - favorable 1998 Budget Actual (unfavorable) Actual OPERATING REVENUES: Solid waste collection $ 1,575,000 $ 1,638,078 $ 63,078 $ 1,539,677 Solid waste disposal 814,000 855,554 41,554 870,753 Other 9,000 7,740 (1,260) 9,777 2,398,000 2,501,372 103,372 2,420,207 OPERATING EXPENSES: Personnel services 387,680 379,496 8,184 349,450 Solid waste collection 1,178,000 1,131,856 46,144 1,163,688 Refuse disposal - 139,565 (139,565) - Contracted services 355,000 307,634 47,366 288,120 Repairs and maintenance 46,500 42,891 3,609 33,415 Landfill closure and postclosure costs 235,000 (260,731) 495,731 227,512 Depreciation 110,000 104,201 5,799 113,936 General and administration 172,840 181,953 (9,113) 176,233 Contributions 25,000 23,524 1,476 50,536 Recycling services 70,000 64,110 5,890 68,009 2,580,020 2,114,499 465,521 2,470,899 Operating income (loss) (182,020) 386,873 (568,893) 50,692 OTHER INCOME: Interest income - 1,296 1,296 257 ' Income (loss) before operating transfers (182,020) 388,169 (567,597) (50,435) OTHER FINANCING SOURCES (USES): Operating transfers out to other funds: Capital projects - state capital grants - (418,869) 418,869 - Net other financing sources (uses) - (418,869) 418,869 - Net loss $ (182,020) (30,700) $ (148,728) (50,435) Amortization of contributions in aid of construction 54,340 74,239 Increase in retained earnings 23,640 23,804 Accumulated deficits, at beginning of year (1,450,639) (1,474,443) Accumulated deficits, at end of year $ (1,426,999) $ (1,450,639) 100 1 KODIAK ISLAND BOROUGH MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1999 AND 1998 EXHMIT E-6 1999 1998 OPERATING INCOME (LOSS) $ 386,873 $ (50,692) ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation Changes in assets and liabilities: Customer receivables Due from other funds Due to other funds Accounts payable Accrual for landfill closure and postclosure costs Other accrued liabilities Total adjustments Net cash provided by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating transfers out to other funds Net cash used in noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets Proceeds from issuance of note payable Net cash provided by (used in) capital and related financing activities 104,201 113,936 (17,950) 27,305 228,981 (290,000) - (5,000) 3,047 942 (260,731) 215,708 (871) 1,967 56,677 64,858 443,550 14,166 (418,869) - (418,869) - (3,862) 418,869 (7,255) 415,007 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments (451,170) Interest and dividends paid on investments 1,296 Net cash provided by (used in) investing activities (449,874) Net change in cash and cash equivalents (10,186) CASH AND CASH EQUIVALENTS, at beginning of year 10,286 CASH AND CASH EQUIVALENTS, at end of year $ 100 NONCASH CAPITAL AND RELATED FINANCING ACTIVITES: Contribution in aid of construction - State of Alaska $ 653,323 (7,255) 257 257 7,168 3,118 $ 10,286 101 KODIAK ISLAND BOROUGH EXHIBIT E -7 HOSPITAL FACILITIES FUND BALANCE SHEETS JUNE 30, 1999 AND 1998 ASSETS 1999 1998 CURRENT ASSETS: Equity in central treasury $ - $ 33,812 Temporary investments 645,588 89,871 Due from other funds 18,790 500,000 Inventories 277,005 277,007 Total current assets 941,383 900,690 RESTRICTED ASSETS: Cash with fiscal agent Temporary investments Total restricted assets FIXED ASSETS: Buildings Machinery and equipment Land and improvements Work -in- process Less accumulated depreciation Net fixed assets TOTAL LIABILITIES AND FUND EOUITY CURRENT LIABILITIES: Accounts payable Due to other funds Deferred revenues Current portion of long -term debt Current portion of capital lease obligations Total current liabilities Long -term debt Capital lease obligations Total noncurrent liabilities FUND EQUITY: Contributions in aid of construction Other Contributed capital Retained earnings (accumulated deficit), unreserved Total fund equity TOTAL 218,013 208,203 - 139,520 218,013 347,723 22,289,005 4,583,308 5,410,563 5,340,360 409,069 32,266 3,910,612 3,906,168 (6,085,449) (5,622,984) 25,933,800 8,239,118 $ 27,093,196 $ 9,487,531 $ - $ 98,005 178,176 - 60,000 60,000 556,625 523,349 376,984 230,973 1,171,785 912,327 1,891,361 2,450,303 640,783 1,154,520 2,532,144 3,604,823 3,703,929 4,517,150 17,956,116 - 5,166,717 5,147,927 266,434 (177,546) 23,389,267 4,970,381 $ 27,093,196 $ 9,487,531 L 1 F j 1 C 1 1 1 1 t 102 1 KODIAK ISLAND BOROUGH HOSPITAL FACILITIES FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS (ACCUMULATED DEFICITS) BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) EXHIBIT E -8 1999 Variance favorable 1998 Budget Actual (unfavorable) Actual OPERATING EXPENSES: Depreciation General and administration Medicaid refund Operating income OTHER INCOME (EXPENSES): Interest income Interest expense Loss on disposal of fixed assets Income (loss) before operating transfers OTHER FINANCING SOURCES (USES): Operating transfers in from other funds: Capital projects - hospital Net other financing sources (uses) Net income $ - Accumulated deficits, at beginning of year Retained earnings (accumulated deficits), at end of year $ 67,330 OPERATING REVENUES: State sources - revenue sharing $ (3) Lease proceeds 720,000 Donations - PKIMC gain 215,000 Other income OPERATING EXPENSES: Depreciation General and administration Medicaid refund Operating income OTHER INCOME (EXPENSES): Interest income Interest expense Loss on disposal of fixed assets Income (loss) before operating transfers OTHER FINANCING SOURCES (USES): Operating transfers in from other funds: Capital projects - hospital Net other financing sources (uses) Net income $ - Accumulated deficits, at beginning of year Retained earnings (accumulated deficits), at end of year $ 67,330 $ 67,327 $ (3) $ 70,751 720,000 720,000 - 720,000 215,000 91,900 (123,100) - 420,610 420,613 3 - - - - 16,965 1,422,940 1,299,840 (123,100) 807,716 632,860 545,084 87,776 583,975 420,610 13,810 406,800 20,729 95,330 2,200 93,130 163,140 1,148,800 561,094 587,706 767,844 274,140 738,746 464,606 39,872 34,680 18,948 (15,732) 70,149 (308,820) (313,231) (4,411) (395,151) - (483) (483) (10,940) - 443,980 443,980 (296,070) 103 1,300,000 - 1,300,000 443,980 $ 443,980 1,003,930 ( 177,546) (1,181,476) $ 266,434 $ (177,546) ri KODIAK ISLAND BOROUGH EXHIBIT E -9 F1 HOSPITAL FACILITIES FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1999 AND 1998 1999 1998 OPERATING INCOME $ 738,746 $ 39,872 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: ' Depreciation 545,084 583,975 Loss on disposal of fixed assets - 10,940 Changes in assets and liabilities: Due from other funds 481,210 160,000 Inventories 2 - Accounts payable (98,005) (2,614) Due to other funds 178,176 (1,500,000) Deferred revenues - 60,000 Total adjustments 1,106,467 (687,699) Net cash provided by (used in) operating activities 1,845,213 (647,827) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating transfers -in from hospital component unit - 1,300,000 Net cash provided by noncapital financing activities - 1,300,000 ' CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (265,343) (1,538,080) Interest paid on note payable and capital leases (313,231) (395,151) Principal payments on note payable (525,666) (489,746) Principal payments on capital lease obligations (367,726) (352,273) Contributed capital received from private trusts - 210,800 Net cash used in capital and related financing activities (1,471,966) (2,564,450) CASH FLOWS FROM INVESTING ACTIVITIES: Interest and dividends paid on investments Maturities (purchases) of investments 18,948 (555,717) 70,149 387,057 Deductions from (additions to) restricted cash (9,810) 1,434,419 Deductions from restricted investments Net by in) investing 139,520 11,248 cash provided (used activities (407,059) 1,902,873 Net change in cash and cash equivalents (33,812) (9,404) CASH AND CASH EQUIVALENTS, at beginning of year 33,812 43,216 CASH AND CASH EQUIVALENTS, at end of year $ - $ 33,812 NONCASH CAPITAL AND RELATED FINANCING ACTIVITES Contributions in aid of construction received $ 17,956,116 $ - Residual equity transfers 18,790 - Contributed capital received from private trust - 849,415 $ 17,974,906 $ 849,415 104 KODIAK ISLAND BOROUGH EXIiIBIT E -10 911 SERVICES FUND BALANCE SHEETS JUNE 30, 1999 AND 1998 ASSETS 1999 1998 ASSETS: Equity in central treasury $ - $ 10,669 Due from other funds 11,888 - TOTAL $ 11,888 $ 10,669 LIABILITIES AND FUND EQUITY (DEFICIENCY IN ASSETS) LIABILITIES: Due to City of Kodiak $ - $ 38,583 Accounts payable 8,230 - Due to other funds - 13,000 Total liabilities 8,230 51,583 FUND EQUITY (DEFICIENCY IN ASSETS): Retained earnings (accumulated deficit), unreserved 3,658 (40,914) TOTAL $ 11,888 $ 10,669 105 KODIAK ISLAND BOROUGH EXHIBIT E -11 911 SERVICES FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS (ACCUMULATED DEFICITS) BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 Variance - favorable 1998 Budget Actual (unfavorable) Actual OPERATING REVENUES: Customer charges $ 67,800 $ 75,951 $ 8,151 $ 51,270 67,800 75,951 8,151 51,270 OPERATING EXPENSES: Telephone services 67,800 31,379 36,421 185,776 67,800 31,379 36,421 185,776 Operating income (loss) $ - 44,572 $ 44,572 (134,506) Retained earnings (accumulated deficit), at beginning of year (40,914) 93,592 Retained earnings (accumulated deficit), at end of year $ 3,658 $ (40,914) 106 KODIAK ISLAND BOROUGH EXHIBIT E -12 911 SERVICES FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1999 AND 1998 1999 1998 OPERATING INCOME (LOSS) $ 44,572 $ (134,506) ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH USED IN OPERATING ACTIVITIES: Changes in assets and liabilities: Customer receivables - 10,650 Due from other funds (11,888) Due to City of Kodiak (38,583) 38,583 Accounts payable 8,230 - Due to other funds (13,000) 13,000 Total adjustments (55,241) 62,233 Net cash used in operating activities (10,669) (72,273) Net change in cash and cash equivalents (10,669) (72,273) CASH AND CASH EQUIVALENTS, at beginning of year 10,669 82,942 CASH AND CASH EQUIVALENTS, at end of year $ - $ 10,669 107 KODIAK ISLAND BOROUGH EXIIIBIT E -13 KODIAK FISHERIES RESEARCH CENTER FUND BALANCE SHEETS ' JUNE 30, 1999 AND 1998 1999 1998 ASSETS CURRENT ASSETS: ' Temporary investments $ 981,991 $ - Due from other funds 51,546 - Accrued interest receivable 1,109 - Total current assets 1,034,646 - FIXED ASSETS: Buildings 18,804,754 - Machinery and equipment 1,156,385 - Work -in- process - 8,000,000 , Less accumulated depreciation (3,987) - Net fixed assets 19,957,152 8,000,000 TOTAL $ 20,991,798 $ 8,000,000 LIABILITIES AND DEFICIENCY IN ASSETS CURRENT LIABILITIES: Accounts payable $ 70,163 $ - Accrued expenses 5,555 - Due to other funds 370,173 246,141 Total current liabilities 445,891 246,141 NONCURRENT LIABILITIES: Long -term interfund borrowings 7,805,000 8,000,000 Total noncurrent liabilities 7,805,000 8,000,000 ' Total liabilities 8,250,891 8,246,141 FUND EQUITY (DEFICIENCY IN ASSETS): , Contributions in aid of construction State of Alaska 3,000,000 Other 8,920,540 - Contributed capital 215,486 - Retained earnings (accumulated deficit), unreserved 604,881 (246,141) Total fund equity (deficiency in assets) 12,740,907 (246,141) TOTAL $ 20,991,798 $ 8,000,000 108 1 F IJ KODIAK ISLAND BOROUGH EXHIBIT E -14 ' KODIAK FISHERIES RESEARCH CENTER FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS (ACCUMULATED DEFICITS) BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 199 8) ' 1999 Variance - t Budget Actual favorable (unfavorable) 1998 Actual OPERATING REVENUES: Rents and royalties $ 1,106,500 $ 995,891 $ (110,609) $ = 1,106,500 995,891 (110,609) OPERATING EXPENSES: ' Personnel services 14,500 81,829 (67,329) - Employee benefits 100 23,931 (23,831) - Support goods & services 1,219,930 83,633 1,136,297 Depreciation 162,750 3,987 158,763 = Cleaning & janitorial 48,800 21,586 27,214 - Heating 53,450 31,454 21,996 - Electrical 271,700 118,145 153,555 - Plumbing Air conditioning 13,950 19,000 6,330 - 7,620 19,000 - - Elevators 1,600 - 1,600 - Miscellaneous 88,720 816 87,904 - 1,894,500 371,711 1,522,789 - Operating income (loss) (788,000) 624,180 1,412,180 - OTHER INCOME (EXPENSES): Interest expense (560,000) (560,000) - - Interest income 48,000 842 (47,158) 173,859 Income (loss) before 1 operating transfers (1,300,000) 65,022 1,365,022 173,859 OTHER FINANCING USES: Operating transfers in from other funds 1,300,000 786,000 (514,000) - Operating transfers out to other funds (420,000) Net other financing sources (uses) 1,300,000 786,000 (514,000) (420,000) Net income (loss) $ 851,022 $ 851,022 (246,141) Retained earnings (accumulated deficit) at beginning of year (246,141) - Retained earnings (accumulated deficit) at end of year $ 604,881 $ (246,141) 109 J KODIAK ISLAND BOROUGH KODIAK FISHERIES RESEARCH CENTER FUND STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1999 EX)FIIBIT E - 15 ' 1999 1998 OPERATING INCOME $ 624,180 $ - ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation 3,987 _ Net assets received from residual equity transfer 1,486 - Changes in assets and liabilities: Due from other funds (51,546) - Accrued interest receivable (1,109) - Accounts payable 70,163 - Accrued expenses 5,555 - Due to other funds 143,032 246,141 Total adjustments 171,568 246,141 i Net cash provided by operating activities 795,748 246,141 CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES: f Operating transfers in from other funds 786,000 Operating transfers out to other funds - (420,000) Net cash provided by (used in) noncapital financing activities 786,000 (420,000) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (40,599) (8,000,000) Interest paid on long -term interfund borrowing Proceeds from issuance of long -term interf ind borrowing (560,000) - - 8,000,000 , Net cash used in capital and related financing activities (600,599) - CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of investments (981,991) Interest received 842 173,859 Net cash provided by (used in) investing activites (981,149) 173,859 Net change in cash and cash equivalents - - CASH AND CASH EQUIVALENTS, at beginning of year - - CASH AND CASH EQUIVALENTS, at end of year $ - $ - , NONCASH CAPITAL AND RELATED FINANCING ACTIVITES: Contributions in aid of construction $ 11,920,540 $ - Residual equity transfers 215,486 - $ 12,136,026 $ L. 110 � f 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. INTERNAL SERVICE FUND The Management Information Services Fund accounts for the data processing services provided to the Kodiak Island Borough and the Kodiak Island Borough School District. KODIAK ISLAND BOROUGH MANAGEMENT INFORMATION SYSTEMS FUND BALANCE SHEETS JUNE 30, 1999 AND 1998 1999 1998 ASSETS CURRENT ASSETS: Equity in central treasury Account receivables, net Due from other funds 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 Accumulated deficits Total fund equity TOTAL $ - $ 87,242 471 - 113,435 - 8,424 16,848 122,330 104,090 618,876 980,897 (303,274) (593,605) 315,602 387,292 $ 437,932 $ 491,382 $ 8,260 39,888 48,148 EXHIBIT F -1 $ 9,965 38,812 48,777 617,382 617,382 (227,598) (174,777) 389,784 442,605 $ 437,932 $ 491,382 111 KODIAK ISLAND BOROUGH ' EXIIIBIT F -2 MANAGEMENT INFORMATION SYSTEM FUND , STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN ACCUMULATED DEFICITS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1999 (with comparative totals for 1998) 1999 ' OPERATING REVENUES: Charges for services: General Fund General Fund (KIBSD support) Mental Health Center 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 Employee benefits Contracted services Support goods and services Depreciation General and administration Net loss ACCUMULATED DEFICITS, at beginning of year (174,777) ACCUMULATED DEFICITS, at end of year $ (227,598) Variance- favorable 1998 Budget Actual (unfavorable) Actual $ 306,710 $ 302,920 $ (3,790) $ 242,762 260,730 264,520 3,790 315,530 - - - 34,951 5,170 5,170 - 2,670 7,990 7,990 - 4,904 10,590 10,590 - 5,700 - 16,667 16,667 33,333 30,170 24,524 (5,646) 22,693 621,360 632,381 11,021 662,543 334,770 311,901 22,869 323,901 98,480 90,613 7,867 108,716 - 5,700 (5,700) 69 181,430 156,508 24,922 192,400 89,160 106,464 (17,304) 88,792 - 14,016 (14,016) - 703,840 685,202 18,638 713,878 $ (82,480) (52,821) $ 29,659 (51,335) I ' El fl (123,442) $ (174,777) t 112 1 1 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH EXEnff F -3 MANAGEMENT INFORMATION SYSTEMS FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1999 AND 1998 1999 1998 OPERATING LOSS ADJUSTMENTS TO RECONCILE OPERATING LOSS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Depreciation Loss on disposal of machinery and equipment Changes in assets and liabilities: Accounts receivables, net Due from other funds Prepaid expenses Accounts payable Accrued liabilities Total adjustments Net cash provided by (used in) 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 113 $ (52,821) $ (51,335) 106,464 88,859 24,036 - (471) 17,725 (113,435) - 8,424 8,424 (1,705) 8,679 1,076 2,352 24,389 126,039 (28,432) 74,704 (58,810) (68,568) (87,242) 6,136 87,242 81,106 - $ 87,242 1 t n 1 GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Assets Account Group is a self - balancing account group which is used to account for the fixed assets of the Borough other than those recorded in the Enterprise Funds. KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULES OF FIXED ASSETS BY SOURCE JUNE 30, 1999 and 1998 EXHIBIT G -1 GENERAL FIXED ASSETS: Land Buildings Improvements other than buildings Machinery and equipment Construction work -in- progress TOTAL INVESTMENT IN GENERAL FIXED ASSETS: Capital Projects Funds: General obligation bonds Federal grants State grants General Fund revenues Special Revenue Fund revenues Contributions from State of Alaska Contributions from Federal Government Contributions from others TOTAL 1999 1998 $ 5,397,391 $ 5,397,389 88,432,326 88,418,025 890,721 858,460 1,509,219 1,503,883 4,791,258 28,345,940 $ 101,020,915 $ 124,523,697 $ 57,755,638 $ 75,762,883 4,316,206 4,316,206 19,327,397 16,288,159 9,406,793 8,552,684 1,116,824 4,256,203 3,786,861 10,036,366 1,259,300 1,259,300 4,051,896 4,051,896 $ 101,020,915 $ 124,523,697 115 1I KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY AS OF JUNE 30, 1999 EDIT G -2 I Improvements Machinery other than and Total Land Buildings buildings e quipment 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 Kodiak Transit Authority Total public safety Schools Teacher housing General government buildings Building sites Playgrounds Other Undeveloped land Construction work -in- progress Total general fixed assets $ 23,189 $ - $ - $ - $ 23,189 44,183 - - - 44,183 121,612 - - - 121,612 62,665 - - - 62,665 102,344 - - - 102,344 1 81,251 - - - 81,251 19,166 - - 4,012 15,154 ' 116,937 - - - 116,937 158,674 2,265 - - - - - - 158 2,265 ' 3,685 - - - 3,685 735,971 - - 4,012 731,959 227,598 - 100,000 - 127 1,142,196 241,137 614,520 - 286,539 , 644,936 - 425,655 - 219,281 3,014 - - 3,014 - 99,555 - 26,460 - 73,095 2,117,299 241,137 1,166,635 3,014 706,513 , 81,245,393 - 81,240,673 4,720 - 231,560 - 231,560 - - 4,867,291 - 4,793 33 40,747 404,403 404,403 - - - 713,989 - - 713,989 - , 1,161,900 - 1,000,000 131,900 30,000 88,624,536 404,403 87,265,691 883,695 70,747 ' 4,751,851 4,751,851 - - - 96,229,657 5,397,391 88,432,326 890,721 1,509,219 ' 4,791,258 - 4,359,477 - 431,781 $101,020,915 $ 5,397,391 $ 92,791,803 $ 890,721 $ 1,941,000 ' 116 1 1 KODIAK ISLAND BOROUGH EXHIBIT G -3 GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED JUNE 30, 1999 General fixed General fixed assets at assets at ' July 1, 1998 Additions Deletions June 30, 1999 Staff agencies: ' Borough mayor $ 23,189 $ - $ - $ 23,189 Borough clerk 39,848 4,335 44,183 Finance department 116,328 5,284 - 121,612 Assessing department 61,341 1,324 - 62,665 Community development department 101,147 1,197 - 102,344 Borough engineering and ' facilities department 82,075 676 1,500 81,251 Land sales 15,154 4,012 - 19,166 General administration Mental Health Center 127,715 173,825 975 11,753 15,151 116,937 158,674 Child Care Assistance Program 2,265 - - 2,265 ' Coastal management l i 1,629 2,056 - 3,685 Total staff agencies 744,516 19,859 28,404 735,971 Public safety: ' Emergency preparedness 229,321 - 1,723 227,598 Fire Protection Area No. 1 1,138,059 4,137 - 1,142,196 ' Womens Bay Fire District 639,415 5,521 - 644,936 Woodland Acres Street Light Service Area 3,014 - - 3,014 Kodiak Transit Authority 73,095 26,460 - 99,555 Total public safety 2,082,904 36,118 1,723 2,117,299 ' Schools 81,240,673 4,720 - 81,245,393 Teacher housing 231,560 - - 231,560 ' General government buildings 4,849,712 17,579 - 4,867,291 Building sites 404,402 1 404,403 Playgrounds 710,239 3,750 - 713,989 ' Other 1,161,900 - - 1,161,900 88,598,486 26,050 - 88,624,536 Undeveloped land 4,751,851 - - 4,751,851 96,177,757 82,027 30,127 96,229,657 Construction work -in- progress 28,345,940 6,393,401 29,948,083 4,791,258 Total general fixed assets $124,523,697 $ 6,475,428 $ 29,978,210 $101,020,915 ' 117 LJ 1 1 1 1 1 GENERAL LONG -TERM DEBT ACCOUNT GROUP The General Long Term Debt Account Group is a self - balancing account group which is used to account for unmatured general long -term debt and other obligations backed by the full faith and credit of the Borough except those long -term obligations which are required to be accounted for in the proprietary fund types and trust funds. KODIAK ISLAND BOROUGH EXMIT H -1 J GENERAL LONG -TERM DEBT ACCOUNT GROUP SCHEDULES OF LONG -TERM DEBT JUNE 30, 1999 AND 1998 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 Alaska Dept. of Environmental Conservation loans TOTAL OTHER LONG -TERM DEBT: Environmental protection agency loan Alaska Dept. of Environmental Conservation loans Accrued annual leave TOTAL 1999 1998 $ 340,159 GENERAL OBLIGATION BONDS: 122,141 1989 refunding 1,030,000 1993 bonds ' 1994 bonds 18,910,000 1998 refunding OTHER LONG -TERM DEBT: Environmental protection agency loan Alaska Dept. of Environmental Conservation loans Accrued annual leave TOTAL 1999 1998 $ 340,159 $ 432,942 122,141 161,721 1,030,000 462,300 594,663 - 18,910,000 18,569,841 19,585,549 114,583 135,415 104,947 99,698 18,7 89,3 71 19, 820,662 $ 19,251,671 $ 20,415,325 $ 2,235,000 $ 3,250,000 6,055,000 6,785,000 1,030,000 9,985,000 9,590,000 - 18,910,000 20,020,000 114,583 135,415 104,947 99,698 122,141 160,212 341,671 395,325 $ 19,251,671 $ 20,415,325 119 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 EXHIBrr I -1 KODIAK, ALASKA SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY AS OF JUNE 30, 1999 Annual principal and interest requirements on General Obligation Refunding and Construction Bonds. Year Principal Interest Total 2000 $ 1,885,000 $ 855,915 $ 2,740,915 2001 1,995,000 745,493 2,740,493 2002 875,000 670,013 1,545,013 2003 910,000 632,251 1,542,251 2004 955,000 592,535 1,547,535 2005 995,000 549,385 1,544,385 2006 1,040,000 502,535 1,542,535 2007 1,090,000 424,305 1,514,305 2008 1,150,000 394,095 1,544,095 2009 1,200,000 344,645 1,544,645 2010 1,250,000 293,045 1,543,045 2011 1,305,000 239,295 1,544,295 2012 1,360,000 183,180 1,543,180 2013 1,420,000 124,700 1,544,700 2014 1,480,000 65,640 1,545,640 $18,910,000 $6,617,032 $25,527,032 121 KODIAK ISLAND BOROUGH EXHIBIT I -2 KODIAK, ALASKA GENERAL OBLIGATION SCHOOL REFUNDING BONDS, SERIES 1989 RETIREMENT SCHEDULE 1989 Bond Issue This issue, dated May 1, 1989, consists of 2,000 bonds in the amount of $5,000 each, totaling $10,000,000. Bonds numbered 1 through 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 1 of each year beginning in 1989. Bonds maturing in 1997 and after are callable beginning in 1997, and this call privilege may be exercised. This issue was marketed by John Nuveen & Co. of Chicago. Legal opinion was rendered by bond counsel, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage, Alaska. Bonds were issued to refund the 1980 issue. Bonds are payable at First Trust N.A., St. Paul, Minnesota. 122 Bond Principal Interest Interest Fiscal Interest numbers due due due year rate inclusive August 1 August 1 February 1 Total 2000 6.95% 1554 -1769 $1,080,000 $ 77,955 $ 40,425 $1,198,380 2001 7.00 1770 -2000 1,155,000 40,425 - 1,195,425 $2,235,000 $ 118,380 $ 40,425 $2,393,805 * Maturities on and after August 1, 1997 are callable at any interest date thereafter. 122 KODIAK ISLAND BOROUGH EX111BIT I -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. 123 Interest Principal Interest Fiscal Interest due due due year rate August 15 February 15 February 15 Total 2000 4.05% $ 135,654 $ 760,000 $ 135,654 $ 1,031,308 2001 4.2% 120,264 790,000 120,264 1,030,528 2002 4.35% 103,674 825,000 103,674 1,032,348 2003 4.4% 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 4.9% 24,010 980,000 24,010 1,028,020 $ 582,477 $ 6,055,000 $ 582,477 $ 7,219,954 123 KODIAK ISLAND BOROUGH EXIMIT I4 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. 124 Interest Principal Interest Fiscal Interest due due due year rate August 15 February 15 February 15 Total 2000 $ 27,810 $ - $ 27,810 $ 55,620 2001 27,810 - 27,810 55,620 2002 27,810 - 27,810 55,620 2003 27,810 - 27,810 55,620 2004 27,810 - 27,810 55,620 2005 27,810 - 27,810 55,620 2006 27,810 - 27,810 55,620 2007 5.4% - 1,030,000 27,810 1,057,810 $ 194,670 $ 1,030,000 $ 222,480 $ 1,447,150 124 LJ 1 I KODIAK ISLAND BOROUGH EXHIBIT I -5 KODIAK, ALASKA GENERAL OBLIGATION REFUNDING BONDS, 1998 SERIES A RETIREMENT SCHEDULE 1998 Bond Issue This issue, dated December 7, 1998, was issued 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 1998 Bonds. The financial advisor for this issue was Kaplan Financial Consulting, Inc. Legal opinion was rendered by bond council, Birch, Horton, Bittner, and Cherot. The paying agent for this issue was Alaska USA Trust Company. These bonds were issued to refund all but $1,030,000 of the 1994 bond issue. This resulted in a total interest savings of $504,859. 125 Interest Principal Interest Fiscal Interest due due due year rate August 15 February 15 February 15 Total 2000 3.75% $ 205,304 $ 45,000 $ 205,304 $ 455,608 2001 3.75% 204,460 50,000 204,460 458,920 2002 3.75% 203,523 50,000 203,523 457,046 2003 3.75% 202,585 50,000 202,585 455,170 2004 4.00% 201,648 55,000 201,648 458,296 2005 4.00% 200,548 55,000 200,548 456,096 2006 4.00% 199,448 60,000 199,448 458,896 2007 4.00% 198,248 60,000 198,248 456,496 2008 4.30% 197,048 1,150,000 197,048 1,544,096 2009 4.30% 172,323 1,200,000 172,323 1,544,646 2010 4.30% 146,523 1,250,000 146,523 1,543,046 2011 4.30% 119,648 1,305,000 119,648 1,544,296 2012 4.30% 91,590 1,360,000 91,590 1,543,180 2013 4.30% 62,350 1,420,000 62,350 1,544,700 2014 4.30% 32,820 1,480,000 32,820 1,545,640 $2,438,066 $9,590,000 $2,438,066 $14,466,132 125 KODIAK ISLAND BOROUGH EXHIBIT I -6 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. Principal Principal Fiscal Interest due due Interest year rate* December 31 June 30 due* Total 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% 10,417 - - 10,417 $ 62,500 $ 52,083 $ - $ 114,583 * No interest is payable until a payment due is in default; then interest, penalties and fees become due 126 KODIAK ISLAND BOROUGH TABLE 1 KODIAK, ALASKA GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION LAST TEN FISCAL YEARS (a) Includes general fund only. (b) Includes operating transfers for this function Source: Borough general ledger 127 Other Fiscal General Health and operating year government s anitation (b) Education transfers Total 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 1998 2,848,474 1,506,992 6,466,321 571,296 11,393,083 1999 2,724,502 1,179,420 7,044,970 9,000 10,957,892 (a) Includes general fund only. (b) Includes operating transfers for this function Source: Borough general ledger 127 KODIAK ISLAND BOROUGH TABLE 2 KODIAK, ALASKA GENERAL REVENUES BY SOURCE (a) LAST TEN FISCAL YEARS (a) Includes general fund only. Source: Borough general ledger 128 Licenses, Inter - Fiscal permits governmental Investment Operating year Taxes and fees revenue income transfers Total 1990 $ 2,640,044 $ 120,145 $ 1,316,238 $ 540,851 $ 68,790 $ 4,686,068 1991 2,823,929 100,868 2,255,951 456,381 173,230 5,810,359 1992 4,067,934 212,936 2,450,339 367,551 81,670 7,180,430 1993 4,481,158 433,825 1,991,730 289,570 - 7,196,283 1994 4,674,382 457,895 2,053,750 291,046 - 7,477,073 1995 5,976,914 928,079 1,633,162 659,794 - 9,197,949 1996 5,693,539 285,100 2,396,704 452,196 - 8,827,539 1997 5,582,037 108,483 2,396,272 371,414 9,672 8,467,878 1998 7,589,595 86,138 2,739,075 333,243 - 10,748,051 1999 7,694,387 86,523 2,055,803 238,515 32,632 10,107,860 (a) Includes general fund only. Source: Borough general ledger 128 1 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS TABLE 3 r Percent of Percent of Percent of current Delinquent total tax Outstanding delinquent Fiscal Total Current tax levy tax Total tax collections delinquent taxes to year tax levy collections collected collections collections to tax levy taxes tax levy 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 88,284 2.4 i 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 5,141,728 4,955,108 96.4 56,140 5,011,248 97.5 232,679 4.5 ' i 1996 5,466,066 5,249,168 96.0 56,531 5,305,699 97.1 289,210 5.3 1997 5,576,773 5,478,939 98.2 96,490 5,575,429 100.0 192,722 3.5 1998 7,384,490 7,121,678 96.4 77,576 7,199,254 97.5 381,180 5.2 1999 7,704,172 7,575,491 98.3 314,367 7,889,858 102.4 234,738 3.0 ' Source: Borough general ledger er g 1 i r r 129 KODIAK ISLAND BOROUGH KODIAK, ALASKA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL Y EARS Source: Borough assessment and tax records Last Ten Years Assessed Values 400,000,000 200,000,000 TABLE 4 I 130 1990 1991 1992 1993 1994 1995 1996 1997 aaa 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 1990 $ 378,072,396 $ 415,666,660 $58,727,868 $229,477,103 $ 436,800,264 $ 645,143,763 67.71 1991 406,433,607 435,940,500 73,508,740 267,181,594 479,942,347 703,122,094 68.26 1992 439,710,369 457,383,400 76,594,500 280,085,100 516,304,869 737,468,500 70.01 1993 467,821,217 497,758,275 91,537,867 331,544,400 559,359,084 829,302,675 67.45 1994 499,172,455 517,754,900 92,264,018 325,842,100 591,436,473 843,597,000 70.11 1995 515,954,650 539,053,753 98,616,145 319,052,138 614,570,795 858,105,891 71.62 1996 538,627,500 560,459,900 101,835,076 318,741,600 640,462,576 879,201,500 72.85 1997 549,456,964 565,281,400 104,677,687 312,465,100 654,134,651 877,746,500 74.52 1998 573,742,998 587,145,000 107,599,894 310,049,900 681,342,892 897,194,900 75.94 1999 577,551,709 599,696,900 109,304,683 297,058,600 686,856,392 896,755,500 76.59 Source: Borough assessment and tax records Last Ten Years Assessed Values 400,000,000 200,000,000 TABLE 4 I 130 1990 1991 1992 1993 1994 1995 1996 1997 aaa KODIAK ISLAND BOROUGH TABLE 5 KODIAK, ALASKA PROPERTY TAX RATES AND CONTRIBUTIONS TO THE SCHOOL DISTRICT (PER $100 OF ASSESSED VALUE) LAST TEN FISCAL YEARS PROPERTY TAX RATES CONTRIBUTIONS TO THE SCHOOL DISTRICT Fiscal Assessed Amount of Woodland Year Value Contribution Equivalent 1990 $ 436,800,264 $ 2,715,080 6.22 1991 Acres 2,838,397 5.91 1992 516,304,869 3,620,202 7.01 1993 KIB City Street ROAD SERVICES AREAS FIRE AREAS Fiscal General of Lighting Monashka Service Bay View Womens Service Womens Year Fund Kodiak Area Bay District 1 Road Bay Area No. I Bay 1990 4.50 2.00 0.00 1.25 0.70 1.00 1.50 1.25 1.25 1991 4.50 2.00 0.75 2.00 1.00 1.00 2.50 1.25 1.25 1992 5.50 2.00 0.75 2.00 1.75 1.00 2.50 1.25 1.25 1993 5.50 2.00 0.75 2.00 1.75 1.00 2.50 1.25 1.25 1994 5.50 2.00 0.75 2.00 1.75 1.00 2.50 1.50 1.25 1995 6.75 2.00 0.75 1.50 1.75 1.00 2.00 1.50 1.25 1996 6.75 2.00 0.50 1.75 1.75 1.00 2.00 1.50 1.25 1997 6.75 2.00 0.50 1.50 1.75 1.00 2.00 1.50 1.25 1998 9.25 2.00 0.50 1.50 0.75 1.00 2.00 1.50 1.25 1999 9.25 2.00 0.00 1.50 0.50 1.00 2.00 1.50 1.25 CONTRIBUTIONS TO THE SCHOOL DISTRICT Fiscal Assessed Amount of Millage Year Value Contribution Equivalent 1990 $ 436,800,264 $ 2,715,080 6.22 1991 479,942,347 2,838,397 5.91 1992 516,304,869 3,620,202 7.01 1993 559,359,084 3,864,691 6.91 1994 591,436,473 3,990,847 6.75 1995 614,570,795 3,770,399 6.14 1996 640,462,576 4,574,068 7.14 1997 654,134,651 4,839,887 7.40 1998 681,342,892 5,715,361 8.39 1999 686,856,392 6,492,876 9.45 Source: Borough ordinance and assessment 131 KODIAK ISLAND BOROUGH TABLE 6 KODIAK, ALASKA TEN LARGEST PROPERTY TAXPAYERS YEAR ENDED JUNE 30, 1999 Source: Borough tax records. 132 Percentage Percentage of total 1998 Net of total assessed Assessed taxes taxes value valuation levied levied International Seafoods 2.1% $ 14,532,437 $ 150,535 2.0% Western Alaska Fisheries 1.6% 11,306,393 115,143 1.5% T.U. of the Northland 1.6% 10,922,176 106,053 1.4% Alaska Pacific Seafoods 1.6% 10,647,201 106,838 1.4% King Crab /Ocean Beauty 1.5% 10,165,318 105,238 1.4% Kodiak Fishmeal Co. 1.3% 9,052,176 88,851 1.2% Sea -Land Services 1.3% 8,760,943 95,549 1.2% Tysons 1.1% 7,896,431 82,676 1.1% Safeway/MBPA 1.0% 7,171,400 98,184 1.3% Leisnoi 1.0% 6,801,735 62,949 0.8% Totals 14.2% $ 97,256,210 $ 1,012,016 13.1% Source: Borough tax records. 132 KODIAK ISLAND BOROUGH KODIAK, ALASKA RATIO OF NET GENERAL BONDED DEBT� ' LAST TEN FISCAL YEARS TABLE 7 Ratio Net of net bonded ' Less Debt bonded debt debt Fiscal Assessed Gross Service Net bonded to assessed per year Population (b) value bonded debt Fund debt value capita 1990 (b) 15,558 $ 436,800,264 $ 15,310,000 $ 6,683,745 $ 8,626,255 2.0 $ 554 ' 1991 15,679 479,942,347 13,735,000 7,307,730 6,427,270 1.3 410 1992 15,535 516,304,869 12,195,000 6,556,480 5,638,520 1.1 363 i 1993 15,535 559,359,084 10,470,000 5,847,171 4,622,829 0.8 298 1994 15,245 591,436,473 27,915,000 4,133,559 23,781,441 4.0 1,560 1995 15,575 614,570,795 25,665,000 2,075,768 23,589,232 3.8 1,515 ' (`) 1996 15,400 640,462,576 23,205,000 1,759,644 21,445,356 3.3 1,393 1997 14,058 '`) 654,134,651 21,660,000 549,569 21,110,431 3.2 1,502 ' 1998 14,181 681,342,892 20,020,000 432,942 19,587,058 2.9 1,381 1999 13,848 686,856,392 18,910,000 340,159 18,569,841 2.7 1,341 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. KODIAK ISLAND BOROUGH TABLE 8 KODIAK, ALASKA COMPUTATION OF DIRECT AND OVERLAPPING DEBT JUNE 30, 1999 Percentage Kodiak Island Net debt applicable to this Borough outstanding governmental share of (a) unit (b) debt (c) Kodiak Island Borough: General obligation bonds $ 18,569,841 100% $ 18,569,841 City of Kodiak: Revenue bonds 3,955,000 100% 3,955,000 Total $ 22,524,841 $ 22,524,841 (a) Gross debt outstanding less applicable amounts in the Debt Service Funds. (b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to valuation of property subject to taxation in reporting unit. (c) Under Alaska Statutes Title 29, there is no limitation on municipal debt. Sources: Borough general ledger and City of Kodiak records. 134 KODIAK ISLAND BOROUGH KODIAK, ALASKA COMPUTATION OF LEGAL DEBT MARGIN JUNE 30, 1999 TABLE 9 Assessed value Plus exempt property Total $ 686,856,392 2,475,199,399 $ 3,162,055,791 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. 135 KODIAK ISLAND BOROUGH TABLE 10 KODIAK, ALASKA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES AND TRANSFERS LAST TEN FISCAL YEARS (a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of term bonds. Source: Borough general ledger and debt documents 136 Total Ratio of general debt service Fiscal Interest Total debt expenditures to general year Principal (a) and fees service and transfers expenditures 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 1998 1,660,833 1,141,366 2,802,199 11,393,083 24.6 1999 1,915,833 853,652 2,769,485 10,957,892 25.3 (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 136 E s F� 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 TABLE 11 KODIAK, ALASKA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Fiscal School Unemployment year Population (a) enrollment (b) rate (c) 1990 15,558 2,381 5.6 1991 15,679 2,486 8.2 1992 15,535 2,602 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 2,793 13.7 1997 14,058 2,809 7.7 1998 14,181 2,897 8.2 1999 13,848 2,815 6.8 Sources: (a) 1990 per U.S. Bureau of Census; other years per Borough Community Development Department, except 1992 and 1993. 1996, 1997, and 1998 data per State of Alaska, DCRA certified population. (b) Kodiak Island Borough School District. (c) Department of Labor, Anchorage. 137 KODIAK ISLAND BOROUGH TABLE 12 KODIAK, ALASKA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS CONS TRUCTION PROPER VALUE* 138 Commercial Residential Deposits Fiscal No. of No. of in local year permits Value permits Value banks Commercial Residential Nontaxable 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 1998 39 16,676,612 149 8,103,624 107,973,700 160,921,064 416,630,645 2,420,601,099 1999 51 6,784,879 141 8,222,313 123,206,000 172,709,507 422,160,780 2,475,199,399 *Estimated actual value of real property. Source: Borough assessing records, City of Kodiak building department and local bankers. 138 KO DIAK ISLAND BOROUGH KODIAK, ALASKA MISCELLANEOUS STATISTICAL DATA LAST TEN FISCAL YEARS Date of incorporation - September 30, 1963, Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended, Form of Government - Mayor /Assembly. $ 7,130 21.5 16.7 877 858 108 9,578 2 1 223 1 15 1 3 1 1 9 5.0 9.5 172.4 6.5 75.3 19.1 21.2 8.3 t 317.3 1990 1991 1992 Land area - square miles $ 7,130 $ 7,130 $ 7,130 Miles of improved street 21.5 21.5 21.5 Miles of sanitary sewers 16.0 16.0 16.0 Number of water taps 748 748 873 Number of sanitary sewer taps 727 727 851 Building permits: Permits issued 122 221 211 Value of buildings (thousands) 9,819 9,399 12,950 Fire protection: Number of fire stations 2 2 2 Number of employees 1 1 1 Police protection - none Recreation: Parks - number of acres 223 223 223 Facilities: Number of playgrounds 15 15 15 Number of swimming pools 1 1 1 Education: Number of schools: City of Kodiak Elementary 3 3 3 City of Kodiak Junior High 1 1 I City of Kodiak High School 1 1 1 Village Schools (a) 8 9 9 Number of personnel: (b) Administration 6.9 7.0 6.0 Principals 8.3 9.5 9.5 Teachers 157.9 165.5 166.3 Technical 6.3 6.5 6.5 Clerical and Aides 70.7 70.1 64.1 Maintenance/Warehouse 19.9 18.8 19.2 Custodial 23.2 23.4 21.2 Food Service 8.4 8.8 8.4 Total number of personnel 301.6 309.6 301.2 Number of students 2,381 2,486 2,602 Number of municipal employees 70 75 72 Elections: Number of registered voters 6,352 6,707 6,263 Number voting in last election 2,327 1,959 1,986 Percent of registered voters 37.0% 29.0% 31.8% (a) The majority of Village Schools are grades K -12. (b) Based on full time equivalents. (c) As of July 1, 1996 the City of Kodiak assumed ownership, maintenance, and operation of the existing water and sewer utilities in Service District. Source: Borough records. 140 $ 7,130 21.5 16.7 877 858 108 9,578 2 1 223 1 15 1 3 1 1 9 5.0 9.5 172.4 6.5 75.3 19.1 21.2 8.3 t 317.3 2,632 ' 67 ' 6,654 2,328 35.0% 1 ' TABLE 13 ' 1994 1995 9 19 96 1 7 99 1998 1999 $ 7,130 $ 7,130 $ 7,130 $ 7,130 $ 7,130 $ 7,130 21.6 21.6 21.6 24.7 24.7 25.0 16.8 16.8 16.8 - (c) - (c) - (c) 913 921 921 - (c) - (c) - (c) 891 899 899 - (c) - (c) - (c) 191 218 201 148 188 192 4,740 10,360 11,728 7,822 24,780 15,007 2 2 2 2 2 2 t 1 1 1 1 1 1 t 223 223 224 224 224 224 15 1 15 1 16 1 16 1 16 1 16 1 ' 3 3 4 4 4 4 1 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 5.0 5.0 6.0 6.0 5.2 5.2 9.5 11.0 12.0 11.7 11.4 11.4 ' 180.0 185.3 183.8 188.5 179.6 178.1 6.5 6.5 3.0 3.5 9.0 9.0 81.3 73.3 61.7 63.7 72.7 75.2 ' 19.1 19.7 12.0 9.0 10.0 8.0 21.7 21.6 22.5 26.3 27.6 30.6 8.3 8.5 3.7 4.2 6.3 6.7 331.4 330.9 304.7 312.9 321.8 324.2 2,802 2,773 2,793 2,809 2,897 2,815 64 65 63 63 50 46 7,061 7,382 8,217 9,350 9,967 10,389 2,634 2,113 1,471 2,120 2,076 1,972 ' i 37.0% 29.0% 17.9% 22.70% 20.8% 19.0% ' 141