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CAFR FY20001 t 1 1 KODIA ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 2000 I I Kodiak, Alaska Gary Stevens, Borough Mayor Prepared by Finance Department: Karleton Short, Finance Director Marian Royall, Revenue Accountant Mary Munk, General Accountant L Ii I KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 2000 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 PresentedComponent 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 Funds and Debt Service Funds ................................................ ..............................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 15 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 Balances - Budget and Actual ........................................................... ............................A -2 44 Schedule of Expenditures and Transfers - Budget and Actual ............................ ............................A -3 46 PAGE ELECTED OFFICIALS (PHOTOGRAPHS) .......................................................... ............................... v BOROUGHOFFICIALS ......................................................................................... ............................... vii BOARDSAND COMMITTEES ............................................................................. ............................... viii MAP OF KODIAK ISLAND BOROUGH .............................................................. ............................... x GFOA CERTIFICATE OF ACHIEVEMENT ........................................................ ............................... xi ORGANIZATIONALCHART ............................................................................... ............................... xii LETTER OF TRANSMITTAL ............................................................................... ............................... ... X111 FINANCIAL SECTION EXHIBIT PAGE INDEPENDENT AUDITORS' REPORT ........................................................... ............................... GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types, Account Groups and Discretely PresentedComponent 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 Funds and Debt Service Funds ................................................ ..............................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 15 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 Balances - 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, 2000 T ABLE OF CONTENTS (continued) EXHIBIT PAGE SPECIAL REVENUE FUNDS: 79 CombiningBalance Sheet ................................................................................... ............................B -1 52 Combining Statement of Revenues, Expenditures, Transfers 80 and Changes in Fund Balances (Accumulated Deficits) ................................... ............................B -2 56 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances (Deficits) - Budget and Actual: 81 Fire and Road Service Areas: 82 Fire: FireProtection Area No. i .................................................................... ............................B -3 59 WomensBay Fire Department .............................................................. ............................B -4 60 KodiakAirport Fire District .................................................................. ............................B -5 61 Road: Monashka Bay Road Service Area ....................................................... ............................B -6 62 ServiceDistrict No. 1 ............................................................................ ............................B -7 63 WomenBay Service Area ................................................................... ............................B -8 64 BayView 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 TourismDevelopment ................................................................................ ...........................B -20 76 KodiakTransit 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 ......................................................... -2 80 ............................0 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances - Budget and Actual: Educationand Health ...................................................................................... ............................0 -3 81 Other............................................................................................................... ............................0 -4 82 CAPITAL PROJECTS FUNDS: CombiningBalance Sheet ................................................................................... ............................D -1 83 Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances ......................................................... ............................D -2 84 Scheduleof Capital Projects ............................................................................... ............................D -3 86 ii 1 iii KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report P P For the Year Ended June 30, 2000 TABLE OF CONTENTS (continued) ' EXHIBIT PAGE ENTERPRISE FUNDS: ' CombiningBalance Sheet ..... ............................................... ............................... Combining Statement of Revenues, Expenses, Transfers ............................E -1 92 and Changes in (Accumulated Deficits) Retained Earnings .............................. ............................E -2 94 Combining Statement of Cash Flows ................................... ............................... ............................E -3 95 Municipal Solid Waste Collection and Disposal Fund: BalanceSheets ................................................................................................. ............................... E-4 97 Statement of Revenues, Expenses, Transfers and Changes in Accumulated Deficits - Budget and Actual .................... ............................... ............................E -5 98 Statementsof Cash Flows ................................................................................ ............................... E -6 99 Hospital Facilities Fund: BalanceSheets ..................................................................... ............................... ............................ E -7 100 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual ......................... ............................... Statementsof Cash Flows ................................................................................ ............................E -8 ............................... E -9 101 102 ' 911 Services Fund: BalanceSheets . ............................................................... ............................... ...........................E -10 103 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual ........................ ............................... ...........................E -11 104 Statementsof Cash Flows .............................................................................. ............................... E -12 105 Kodiak Fisheries Research Center Fund: BalanceSheets .................................................................... ............................... Statement of Revenues, Expenses, Transfers and Changes ........................... E -13 106 in Retained Earnings - Budget and Actual ........................ ............................... ...........................E -14 107 ' Statementsof Cash Flows ................................................... ............................... INTERNAL SERVICE FUND: ...........................E -15 108 Management Information Systems Fund: BalanceSheets .................................................................................................... ............................F -1 109 Statement of Revenues, Expenses, Transfers and Changes in in Accumulated Deficit - Budget and Actual ................................................. ............................... F -2 110 Statementsof Cash Flows ................................................................................ ............................... F -3 111 1 iii KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 2000 TABLE OF CONTENTS (continued) EXHIBIT PAGE GENERAL FIXED ASSETS ACCOUNT GROUP: Schedules of Fixed Assets by Source .................................................................. -1 113 ............................G Schedule of General Fixed Assets by Function and Activity 125 .............................. ............................G -2 Schedule of Changes in General Fixed Assets by 114 Functionand Activity ........................................................................................ ............................G -3 115 GENERAL LONG -TERM DEBT ACCOUNT GROUP: 127 Schedulesof Long -Term Debt ............................................................................ ............................H -1 117 ADDITIONAL INFORMATION - BONDED INDEBTEDNESS: 128 Summary of Bonded Debt Service Requirements to Mat urity ............................. ............................1 -1 119 General Obligation School Refunding Bonds, Series 1989 — Retirement Schedule ........................ I -2 120 General Obligation Bonds, 1993 Series A — Retirement Schedule ................... ............................... I -3 121 General Obligation Bonds, 1994 Series A — Retirement Schedule ................... ............................... I-4 122 General Obligation Bonds, 1998 Series A — Retirement Schedule ................... ............................... I -5 123 Asbestos Removal Loan Payable — Retirement Schedule .................................... ............................I -6 124 STATISTIC SECTION TABLE PAGE STATISTICAL TABLES: General Governmental Expenditures and Other Uses by Function - Last Ten Fiscal Years ................................................................... ..............................1 125 General Revenues by Source - Last Ten Fiscal Years .......................................... ..............................2 126 Property Tax Levies and Collections - LastTen Fiscal Years ......................................................................................... ..............................3 127 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years ......................................................................... ..............................4 128 Property Tax Rates and Contributions to the School District (per $100 of assessed value) LastTen Fiscal Years ........................................................................................ ..............................5 129 Ten Largest Property Taxpayers ........................................................................... ..............................6 130 Ratio of Net General Bonded Debt - Last Ten Fiscal Years ................................. ..............................7 131 Computation of Direct and Overlapping Debt ...................................................... 132 ..............................8 Computation of Legal Debt Margin ...................................................................... ..............................9 133 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures and Transfers - LastTen Fiscal Years ........................................................................................ .............................10 134 Demographic Statistics - Last Ten Fiscal Years .................................................. .............................11 135 Property Value, Construction and Bank Deposits - LastTen Fiscal Years ........................................................................................ .............................12 136 Miscellaneous Statistical Data - LastTen Fiscal Years ........................................................................................ .............................13 138 1V INTRODUCTORY SECTION I I MAYOR AND ASSEMBLY MEMBERS � I Mayor of Kodiak Island Borough, 2001 SCOTT ARNDT At Large, 2000 TOM ABELL At Large, 2002 PATRICIA BRANSON At Large, 2001 ROBIN HEINRICHS At Large, 2001 SHAWN (TUCK) BONNEY Deputy Mayor, At Large, 2002 GREGEORY C. SPALINGER At Large, 2000 DARLENE TURNER At Large, 2002 FI KODIAK ISLAND BOROUGH BOROUGH OFFICIALS YEAR ENDED JUNE 30, 2000 ' BOROUGH ASSEMBLY Scott Arndt `00 Greg Spalinger `00 Patricia Branson `01 Robin Heinrichs `01 Tom Abell `02 Tuck Bonney (Deputy Mayor) `02 Darlene Turner `02 BOROUGH MAYOR Gary Stevens `01 DavidJensen ......................................................................... ............................... Borough Manager ' Karleton G. Short ........................... ............................... ......................... Finance Director/Treasurer Alan G. Verbitsky ....................................... ............................... Engineering and Facilities Director JudithA. Nielsen, CMC ............................................................. ............................... Borough Clerk Linda L. Freed ............................................ ............................... Community Development Director PatrickS. Carlson .......................................................... ............................... .......................Assessor RobertA. Himes ................................................................. ............................... Assistant Fire Chief Jamin, Ebeil, Schmitt & Mason .............. ............................... Borough Attorney (Contracted Finn) Betty Walters ................................... ............................... .................Superintendent, School District MaryMunk ......................................................................... ............................... General Accountant MarianRoyall ............................................ ............................... ........................Revenue Accountant EllenCloudy ...................................................... ............................... .....................Purchasing Agent vii KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 2000 School Board * Pat Jacobson Alice Knowles Norm Wooten Jack McFarland Jeff Stephan Dan Canavan, USCG Rep. Greg Spalinger — Assembly Rep. Tuck Bonney — Assembly Rep. Scott Arndt — Assembly Rep. Sheila Roberts - Staff Joey Kay Hutcherson, Student Rep. Hospital & Health Facilities Advisory Board * Mark Buckley Gil Bane Fred Bugarin Michael Machulsky Mary Monroe Gretchen Saupe Wayne Stevens Pat Branson, Assembly Rep Phil Cline, Administrator, ex -officio Welby Jensen, Chief of Staff Robyn Holloway, KIH Staff Mental Health Center Advisory Board Jody Burcham Thia Falcone David Davis Patricia Stokley Crowe Steven Honnold Jeff Knauf Cecil Ranney Pam Foreman Darlene Turner, Assembly Rep. Lt. Tish Palmer, USCG Rep, ex- officio Robin Gardner, MHC Staff Karen Perkins, KAMI Rep., ex- officio Welby Jensen, MD, Providence Rep, ex- officio Karen Bennett, support staff Planning and Zoning Commission Donna Bell Robert Himes Robert Lindsey Greg Razo Robbie Scheidler Clarence W. Selig Walter Stewart Linda Freed, KIB Staff Woodland Acres Street Lighting Service Area Advisory Board Phillip Cline Kevin Arndt Citizens Board of Equalization * Jim Carmichael Wayne Stevens Karenia Hackett Tim Hurley Cheryl McNeil Kelcy LaGasse, Alternate Pat Carlson, KIB staff Patti Kirkpatrick, KIB staff Parks and Recreation Committee * David Odell Steven Honnold Kenneth Hansen Vincent Walser Walter Stewart, P&Z Rep. Kate Wynne Tom Abell, Assembly Rep. Ian Fulp, City Rep., ex- officio Claire Holland, State Rep., ex- officio Joe Floyd, School Board Rep Linda Freed, KIB Rep Building Code Board of Appeals/ (Architectural Review Board) Gerald Cloudy Gregg Hacker Jay Johnston Dale Soughers Robin Heinrichs, Assembly Rep. Bob Tucker, KIBSD Rep., ex- officio Jack McFarland, School Board Rep., ex officio Dave Jensen, KIB Rep., ex- officio Personnel Advisory Board Paul Alexander Bill King Chris Nielsen Warren Russell Jody Spivey Ellen Cloudy, KIB staff I it �J 1 viii I P, 1 f I� KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 2000 Data Processing Steering Committee Dave Jensen Gary Stevens Karleton Short Betty Walters David Jones Jim Nagen Fire Protection Area No. I Advisory Board * Scott Arndt Jeff Halcomb Kevin Arndt Eric McFarlin Eileen Probasco Robert Himes, ex- officio Bay View Road Service Area Advisory Board Fred Roberts Dawn Black Marcia Oswalt Reed Oswalt James Schauff Monashka Bay Road Service Area Advisory Board * Dave Sundberg Alayne Larsen Jeff Hamer Corrine Estelle Ferre Jack McFarland Emergency Services Organization Carolyn Floyd Dave Jensen Bill Jones, City Manager, City of Kodiak Gary Stevens John Miller, Capt. USCG Womens Bav Service Area Advisory Board * Mike Wilchek Fred Waltman, II David Conrad Linda Estes Edward Gondek Linda Hinson Tom Trosvig Dale L. Rice, ex- officio Kodiak Area Transit Sv stem Committee * Pat Branson Wanetta Ayers Marie Barni Tim Blott Steven Honnold Don Roberts Tom Abell, Assembly Rep., ex- officio John Miller, USCG, ex- officio Mary Monroe, City Rep, ex- officio Linda Freed, KIB Staff Airoort Advisory Comm * Stosh Anderson Charles Barber Dean Andrew Bill King Ruth Lovejoy Arlene Mauldin Donald Rossiter Wayne Stevens ix John Chya, ex- officio CDR Jim Poyer, USCG ex- officio Borough Clerk's Office, KIB staff Service Area No. 2 Commission Connie Estelle Ferre Norman Mullan Airport Fire Protection District Advisory Board Fred Ball Michael Machulsky Rene Sy * Indicates chair Service Area No. 1 Advisory Board * Kevin Arndt Robert Greene Scott Arndt Robert Casey ' Ed Mahoney Jennifer Spencer Kaye McClain Womens Bav Service Area Advisory Board * Mike Wilchek Fred Waltman, II David Conrad Linda Estes Edward Gondek Linda Hinson Tom Trosvig Dale L. Rice, ex- officio Kodiak Area Transit Sv stem Committee * Pat Branson Wanetta Ayers Marie Barni Tim Blott Steven Honnold Don Roberts Tom Abell, Assembly Rep., ex- officio John Miller, USCG, ex- officio Mary Monroe, City Rep, ex- officio Linda Freed, KIB Staff Airoort Advisory Comm * Stosh Anderson Charles Barber Dean Andrew Bill King Ruth Lovejoy Arlene Mauldin Donald Rossiter Wayne Stevens ix John Chya, ex- officio CDR Jim Poyer, USCG ex- officio Borough Clerk's Office, KIB staff Service Area No. 2 Commission Connie Estelle Ferre Norman Mullan Airport Fire Protection District Advisory Board Fred Ball Michael Machulsky Rene Sy * Indicates chair x ARCTIC OCEAN P BARROW BARR W PRUDHOE 134 KOTZEBUE {y b OuZINKIE ARCTIC � CIRCIE KODIAK CANADA KARLUK APE � NOME SEN HINIAK MA Y w� D 0� NORTON SOUND FAIRBANKS AKHIOK llrrrrN^�•••��� ALASKA G �� �• ANCHORAGE � i KODIAK � BErHEL v K ENa ISLAND t j BOROUGH DILLINGHAM E SEWARR NEAU GULF OF ALASKA HIKAN BRISTOL 84Y KODIAK • ISLAND �k •' ° .4 NORTH PACIFIC OCEAN Certificate of Achievement for Excellence in Financial Reporting Presented to Kodiak Island Borough, Alaska For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1999 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. ' OF' C � F THE s 4j�7 TED SATES w A : N A " N " D " IIDN President tPORA g i 7EdI. �a�' CNIC ►GO y` Y /� Executive Director Xi KODIAK ISLAND BOROUGH ORGANIZA77ONAL CHART FISCAL YEAR 2000 . -- - -, Meyer *; Dipe w rek - I eamm I Auiaunt Mama ik�(rin� Tachtnciea ` -- Sccrcrary !li �lecwrtte -- I ae !" AV a KDDMK ISLAND BOROUGH M+aycwm ktaw�a Genaw AecounUM Accounttn� J TccbaiaaJPayroll Accauatia� -- TechnichalACCOu rilr ilsjnlde a{yGYe Auitunce Adnnasora<wr Seaiict Sygeau Aruiyst Opuauons Supervise Admiriwuor E Tccbniciun BMIer OperiWr i Kodiak Island Borough Finance Department 710 Mill Bay Road Kodiak. Alaska 9961 Phone (907) 486 -9323 Fax (907) 486 -9392 i To the Honorable Mayor and Members of the Assembly Kodiak Island Borough ' Kodiak, Alaska The comprehensive annual financial report of the Kodiak Island Borough (the Borough), Kodiak, ' Alaska, for the fiscal year ended June 30, 2000, is submitted herewith. The Borough Finance Department prepared this report. Responsibility for the accuracy, i completeness, and fairness of presentation, including all disclosures, rests with the Borough. We believe the data, as presented, is accurate in all material respects, is presented in a manner designed to fairly set forth the financial position and results of operations of the Borough as measured by the financial activity of its various funds. All disclosures necessary to enable the reader to gain maximum understanding of the Borough's financial affairs have been included. This comprehensive annual financial report is presented in three main sections: introductory, financial, and statistical. The introductory section includes background on the Borough, the fund accounting concepts used by the Borough, and some financial presentations. The financial section includes the independent auditors' report, combined financial statements, notes to combined financial statements, and the more detailed combining and individual financial statements and schedules. The statistical section includes selected financial and general information generally presented on a ten -year comparative basis. GENERAL INFORMATION The Kodiak Island Borough lies at the western border of the Gulf of Alaska, approximately 40 miles south of the Kenai Peninsula. About two - thirds of the Borough lies in the Kodiak archipelago. One -third of the Borough is on the Alaska Peninsula, across the Shelikof Strait from Kodiak Island. The Shelikof Strait is only 20 miles wide in places. The Borough encompasses 7,130 square miles, making it slightly smaller than the State of Massachusetts. ' The Borough was incorporated September 30, 1963, as a Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. A Mayor/Manager form of government governs the Borough. The Borough Assembly is composed of seven members who are elected at- large. I xiii October 31, 2000 The criteria used in determining the reporting entity are consistent with the Codification of Governmental Accounting and Financial Reporting Standards Section 2100, "Defining the Reporting Entity ". Based on these criteria, the various funds and account groups (being all the funds and account groups of the Borough) shown in the Table of Contents are included in this report. ECONOMIC CONDITION AND OUTLOOK Economic Sectors The major economic sectors of the Borough are commercial fishing, logging, and tourism. Being located in the Gulf of Alaska and the North Pacific Ocean places the Kodiak Island Borough near some of the richest fishing grounds in the world. In 1998, Kodiak was ranked third 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 ninety - one 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 Alaska Department Fish and Game, 326,564,340 pounds of fish were landed at the Port of Kodiak in 1999 with an exvessel value of $103,907,653. In 1998, 388,676,685 pounds of fish with a value of $79,255,662 were landed. *2000 Fish & Game table had 20 species. while 1998 had 19 species. xlv inumoer o[ as catignt 1999 1998 Total for year 326,564.340 Total for year 388,676,685 Percent *Ranking by Percent *Ranking by Species Pounds of total S per pound Species Pounds of total S per pound pollock 130.514.483 40% 17 pollock 165,771,470 43% 17 salmon 70511,435 22% 8 salmon 105,574,455 27% 9 pacific cod 85,015.228 26% 11 pacific coil 71,974.284 19% 11 halibut 9.911.645 3% 3 halibut 9,088.000 2% 6 Total 295.952.791 91% 1 Total 352.408.209 91% *2000 Fish & Game table had 20 species. while 1998 had 19 species. xlv cxvessea value 1999 1998 Total for year S 103.907,653 Total for year S 79,255.662 Percent *Ranking by Percent *Ranking by Species Value of total S per pound Species Value of total S per pound salmon $ 31,085,428 30% 8 salmon $ 29,809,626 38% 9 pacific cod 25.504.568 25% 11 pacific cod 13,675.114 17% 11 pollock 13,051,448 13% 17 pollock 11,604,003 15% 17 halibut 20.616.222 20% 3 halibut 9,996,800 13% 6 Total S 90.257.666 87% Total S 65.085.543 82% *2000 Fish & Game table had 20 species. while 1998 had 19 species. xlv I I ■ The severance tax revenue collected for timber in fiscal year 2000 was $112,822. This increased ' from fiscal year 1999's collection of $95,691. This increase is due to the economy in Asia and Japan. These two markets are the main 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 drives up the price of Alaskan timber, making the domestic market unprofitable. The tourism industry in Kodiak is based on our natural resources and is therefore seasonal. Seventy -six percent of our visitors come here during the summer months. Tourists come to our island to enjoy the beauty of the island through hunting, hiking, camping, and fishing. They also come for the history, the culture and the wildlife that is abundant throughout Kodiak. ' 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. These visitors tend to spend more than twice as much as the average visitor to other regions in Alaska. Visitors to Kodiak Island Borough generated $37,889 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 of the local labor force, or 31 percent, are employed in the fish harvesting area. Manufacturing, mainly 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 make up 24 percent. Retail and wholesale sector have 8 percent, the service sector has 11 percent, with the remaining 7 percent 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 then declines in November and December when fishing quotas are reached. The unemployment rate as of June 30, 2000 was 12.3 percent compared to 5.4 percent in 1999 and 5.2 percent in 1998. Throughout fiscal year 2000, the unemployment rate has fluctuated from 3.6 percent to 12.4 percent, with an average of 7.18 percent. Population The estimated population of the Kodiak Island Borough for fiscal year 2000 is 13,989. Kodiak Island 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 the 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 I personnel and 1,600 military dependents. xv MAJOR INITIATIVES In preparing the fiscal year 2000 budget, the Kodiak Island Borough identified several major projects to be addressed during the year. All major projects, with the exception of the Borough's landfill vertical expansion project, are listed in Exhibit D -3 of the comprehensive annual financial report. The landfill project is included in the Borough's Municipal Solid Waste Collection and Disposal Enterprise Fund. The most significant project undertaken in fiscal year 2000 was continuing with the landfill vertical expansion. The landfill project includes final contour configurations of the site, drainage control, slope stability, and allowances for future lateral expansions 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 2000 totaled $150,115. 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, a component unit of the Kodiak Island Borough. In order to provide adequate health care, the Borough has leased the Hospital and Care Center to the Sisters of Providence in Washington d.b.a. Providence Health System in Alaska (PHSA). PHSA also took over operating 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 2000, 210 building permits were issued with a value of $11,806,333. The number of permits increased by fifteen over 1999, while the value decreased by $3,200,859. The drop in value is attributed to the difference in residential versus commercial permits. The value of commercial permits decreased $4,064,620 while residential value increased $863,761. 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. The Borough Finance Department wants to ensure the safeguarding of Borough assets and the delivery of reliable and accurate financial information. Duties are segregated as much as possible in a small office, which limits individual control over any one area. Internal control policies are reviewed at least annually and documented to reflect any procedural changes that are deemed necessary. Cross training and segregation of duties are considered valuable in the internal control structure. Budgetary Controls ' The Borough uses the modified accrual basis of accounting for governmental funds and the accrual basis for enterprise funds. Under the modified accrual basis of accounting, revenues are recognized when measurable and available and expenditures are recognized when incurred. Budgetary control is maintained by an annual appropriation system supplemented with an additional appropriation approximately halfway through the fiscal year. Budgetary control is also maintained through the use of an encumbrance system. As purchase orders, contracts, and other obligations are issued, corresponding amounts of appropriations are reserved by the use of encumbrances so that appropriations will not be overspent. A public hearing and the adoption of a budget ordinance appropriates all new funds. The Assembly makes appropriation transfers between funds and/or departments only after the adoption of an ordinance. Borough staff may execute transfers between line items within a department. GENERAL GOVERNMENT FUNCTIONS The following charts summarize General Fund revenues for the fiscal year ended June 30, 1991 compared to the fiscal year ended June 30, 2000. This chart includes General Fund revenues only. Fiscal Year 1991 Fiscal Year 2010 Licenses, Permits, Other 2% Inlergovernmente 40% Licenses, Intergovern 18% Property Taxes 50°/ Severance Taxes 12% �roparly Taxes 66% xvii Investment Income The following schedule summarizes changes from the prior year for General Fund revenues: Increase (decrease) 2000 1999 Amount Percent Revenue Sources Property Taxes $ 6,623,808 $ 6,688,097 $ (64,289) (1.0) Severance Taxes 1,175,650 1,006,290 169,360 16.8 Intergovernmental 1,770,040 2,055,803 (285,763) (13.9) Licenses, Permits, Fees and Other 128,864 150,809 (21,945) (14.6) Investment Income 358,352 238,515 119,837 50.2 Total $ 10,056,714 $ 10,139,514 $ (82,800) (0.8) * This percentage is the change in overall totals, not the column. Property tax is the largest source of revenue for the General Fund of the Kodiak Island Borough. The minor decrease in property taxes is a result of correcting the Borough's method of accounting for property taxes receivable. Prior to fiscal year 2000, the Borough did not defer property taxes receivable that had not been collected within sixty days of fiscal year -end. During 2000, the Borough elected to change this policy before the amounts became significant. Severance tax revenues increased from $1,006,290 in fiscal year 1999 to $1,175,650 in fiscal year 2000. The tax related to the fishing industry increased by $151,047 while the severance tax on timber increased by $17,132; the remaining difference was due to the mining industry. The decrease in intergovernmental revenue is due to payments from the state revenue sharing sources. In fiscal year 2000, we received $1,088,742 and in 1999 we received $1,417,887, a decrease of $329,146. The licenses, permits, fees and other revenue decrease is attributed to the receipt of $30,665 in fiscal year 1999 for Emergency Medical Services. This receipt was not received in fiscal year 2000 as the funds went directly to another agency rather than being passed through the Borough. The Borough had more investment income in fiscal year 2000 due to better returns on investments; $119,837 more than last year. The following chart compares General Fund expenditures and operating transfers by function for the years ending June 30, 1991, and June 30, 2000: Year ended 1991 Year ended 2000 CJwro and Re Oon 11% nmeM Q nvmmant b PuE10 Solely 1% RWM and Sanaaaon 0% Ed RedN and SsnPAWn 13% xviii Comaaaary Devalopnaa 7% a il '1 Changes in expenditures for major General Fund functions of the Borough over the preceding year are shown in the following tabulation: The decrease in public safety is mainly attributed to the decrease funding for the city ambulance service and the elimination of the emergency medical service funds, which went to another agency rather than being passed through the Borough. A decrease in operating transfers is the primary reason for the decrease in health and sanitation, as well as education. Reductions in contributions to non - profit agencies resulted in the decrease in culture and recreation. Community development decreased due to a decrease in salary expense, data services, and higher allocations to other funds. 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, 2000 was $1,142,515. This is $359,056 more than the June 30, 1999 balance of $783,459. 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 I xix 1991 1992 1983 1694 1995 1996 1997 199E 1990 2000 Increase (Decrease) 2000 1999 Amount Percent General Government $ 2,122,138 $ 2,104,920 $ 17,218 0.8 Public Safety 119,805 179,746 (59,941) (33) Health and Sanitation 613,873 1,002,058 (388,185) (39) Education 6,500,341 7,044,970 (544,629) (8) Culture and Recreation 166,630 208,930 (42,300) (20) !' Community Development 304,701 417,268 (112,567) (27) Total $ 9,827,488 $ 10,957,892 $ (1,130,404) (10) • This percentage is the change in overall totals, not the column. The decrease in public safety is mainly attributed to the decrease funding for the city ambulance service and the elimination of the emergency medical service funds, which went to another agency rather than being passed through the Borough. A decrease in operating transfers is the primary reason for the decrease in health and sanitation, as well as education. Reductions in contributions to non - profit agencies resulted in the decrease in culture and recreation. Community development decreased due to a decrease in salary expense, data services, and higher allocations to other funds. 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, 2000 was $1,142,515. This is $359,056 more than the June 30, 1999 balance of $783,459. 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 I xix 1991 1992 1983 1694 1995 1996 1997 199E 1990 2000 PROPRIETARY OPERATIONS In fiscal year 2000, the Municipal Solid Waste Fund had an operating income of $68,670. This increase follows an operating gain of $386,873 for fiscal year 1999. The major contributor to the decrease from last year was the closure/post closure expense of $128,623. In fiscal year 1999 the closure/post closure expense had a credit adjustment of $260,731. On April 22, 1997 the Kodiak Island Borough leased the Kodiak Island Hospital 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 2000 was $44,883, a $22,444 reduction from fiscal year 1999. Their lease stipulates that profits will be shared with the Borough on an equal basis, with the maximum amount in one year of $600,000, but Providence will absorb losses. The Borough received $217,662 for gain on operations, a $202,951 reduction from fiscal year 1999. 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 in October 1998. The Center is home to the National Oceanic and Atmospheric Administration, (NOAA), 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. 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 the 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. xx 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 (i.e., federal withholding, FICA, insurance, pension fund, etc.) is accounted for and promptly remitted to the agency involved. DEBT ADMINISTRATION Summary of debt principal outstanding at fiscal year end was: General Obligation, School Refunding, 1989 $ 1,155,000 General Obligation, 1993 5,295,000 General Obligation, 1994 1,030,000 General Obligation, 1998 9,545,000 State of Alaska, ADEC Loans 105,272 Environmental Protection Agency Loan 93,749 Total $ 17,224,021 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. General Obligation, School Refunding, 1989 General Obligation, 1993 General Obligation, 1994 General Obligation, 1998 Moody's Investors Standard Service and Poors Fitch's Aaa Aaa Aaa AAA AAA AAA AAA AAA 1I '' xxi As of June 30, 2000, net per capita bonded debt is $1,199. For comparison purposes, the following is the net per capital bonded debt for the past ten years: General Bonded Debt Per Capita Last ten fiscal years $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $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 we utilize proper monitoring procedures 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 have an excess of cash. In this manner, the Borough is able to fully invest all idle funds without creating a "bank overdraft ". Deposits are made daily and all idle funds are invested on the following day. The Borough recognizes that there is frequently some exposure to uninsured and uncollateralized deposits. Great strides have been made in minimizing this exposure through increased collateral and selection of banks and brokers with additional insurance. A local servicing bank "sweeps" the total balances to another account on a daily basis. At this time $4,000,000 of Kodiak Island Borough Ambac insured bonds collateralize this account. A third -party bank (State Street Bank) holds this collateral. All new investments are purchased on a delivery versus payment system. This means that when the Borough purchases a new instrument, such as a Treasury bill or an agency note, our servicing bank pays for the instrument when it is delivered to them. The servicing bank holds accounts for xxii 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 'i 'i all investments in the Borough's name. Management feels that this is the safest way of holding our investments. The Borough's investment policy is far more restrictive than that of many governments. The operational parameters are defined in Title 3, Chapter 4, of the Borough Code. Basically, it states that we invest only in high -grade securities that are fully collateralized and/or insured. Further, a third -party bank, State Street, holds all investments and collateral. During the past year, the investments of the Borough have fluctuated between $16 and $26 million. Interest rates for our fiscal year started at 4.68 percent to 5.51 percent in early July 1999. At year -end, investments were earning from 5.85 percent to 7.23 percent for an average yield of 6.38 percent. We ended the year with investment earnings for all funds in the amount of $1,509,328. 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 i factors, one being the increased state and federal regulations related to this issue. We have a Safety Committee that meets monthly and discusses the accident prevention program and develops loss prevention policies in an effort to manage risk exposure. Several areas of concern ' are now addressed including hazardous material management, bloodborne pathogens, sexual harassment awareness, accident prevention, ergonomics, and evaluation of work environments to i prevent cumulative trauma. The Borough presents training to employees to address these and other issues as part of the accident prevention program, an integral component of an effective risk management program. OTHER INFORMATION INDEPENDENT AUDIT The Borough Code requires an annual audit to be made of the books of account, financial records, and transactions of all administrative departments of the Borough. We have complied with this requirement and the independent auditors' report has been included in this report. U I xxiii The Alaska Statutes require single audits and define these requirements in 2 AAC 45.010. The Borough also complies with the "Federal Single Audit Act of 1984" as amended by the "Single Audit Act Amendments of 1996 ", and the "Drug -Free Workplace Act of 1988." AWARDS GOVERNMENT FINANCE OFFICERS ASSOCIATION CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Kodiak Island Borough for its comprehensive annual financial report for the fiscal year ended June 30, 1999. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such a report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Borough has received a Certificate of Achievement for the last twelve consecutive years (fiscal years ended 1988 - 1999). We believe our current report continues to conform to the Certificate of Achievement Program requirements, and we are submitting it to the Government Finance Officers Association. GOVERNMENT FINANCE OFFICERS ASSOCIATION DISTINGUISHED BUDGET PRESENTATION AWARD The Government Finance Officers Association of the United States and Canada (GFOA) has presented a Distinguished Budget Presentation Award to the Kodiak Island Borough for its annual budget for the last ten consecutive years (fiscal years beginning July 1, 1990 through July 1, 1999). The Borough has submitted its annual budget for the fiscal year beginning July 1, 2000, and believes that it will also meet the criteria for this award. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operating guide, as a financial plan, and as a communications medium. xxiv ACKNOWLEDGMENTS ■ I wish to express my appreciation to all the members of the Finance Department for their efficient and dedicated service during the past year. I wish to thank your office and the members ' of the Borough Assembly for their interest in and support of the planning and conducting of the financial operations of the Borough in a responsible and progressive manner. Respectfully submitted, 4 &' . 4. 4 KARLETON G. SHORT DIRECTOR OF FINANCE 'I U I xxv FINANCIAL SECTION 1 1 1 1 J 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. lJ 1 ' The Honorable Mayor and Members of the Assembly Kodiak Island Borough Kodiak, Alaska We have audited the accompanying general purpose financial statements of Kodiak Island Borough (the Borough), Alaska, as of June 30, 2000, 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 auditing tandards generally accepted in the United g g Y P States of America 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, 2000, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents, are presented for the purpose 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. ' Deloitte Touche Tohmatsu 1 Deloitte & Touche LLP Suite 1500 550 West 7th Avenue Anchorage, Alaska 99501 Tel: (907) 272 -8462 Fax: (907) 264 -3181 www.us.deloitte,com Deloitte & Touche INDEPENDENT AUDITORS' REPORT ' The Honorable Mayor and Members of the Assembly Kodiak Island Borough Kodiak, Alaska We have audited the accompanying general purpose financial statements of Kodiak Island Borough (the Borough), Alaska, as of June 30, 2000, 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 auditing tandards generally accepted in the United g g Y P States of America 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, 2000, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents, are presented for the purpose 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. ' Deloitte Touche Tohmatsu 1 U The statistical data on pages 125 through 139 are presented for the purpose 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 our 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 6, 2000, 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. "Dja;*-,, � 7; z..4- e October 6, 2000, except for Note 19, as to which the date is December 14, 2000 2 KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT JUNE 30, 2000 (with comparative totals for 1999) Proprietary Governmental Fund Types Fund Type Special Debt Capital General Revenue Service Projects Enterprise ASSETS AND OTHER DEBITS ASSETS: Equity in central treasury $ 650 $ 1.088,574 $ 134,886 $ 80,447 $ 333,191 Temporary investments 2,983,700 9,115,342 694,611 297,690 1,855,146 Other cash and cash equivalents - - - - - Receivables: Accounts and other receivables, net 353,934 137,300 17,318 7,422 522,114 State of Alaska 173,353 138,498 - 22,909 31,094 Federal Government - 16,027 - - Property taxes, net of allowance of $15,829 284,871 - - - - Land sales contracts, due within one year - 58,364 - - - Due from other funds 745.074 1,012,590 - 323,149 547,935 Due from primary government - - - - Inventories - - - - 277,007 Prepaid expenses/expenditures - 8,164 - - - Long -term interfund advances - 7,595,000 - - Restricted assets: With fiscal agent - - - Land sales contracts receivable, due after one year - 84.151 - Fixed assets, net of accumulated depreciation where applicable - - - - 46,755,630 Construction work -in- progress - - - - 1,941.032 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 $ 4.541.582 $ 19.254,010 $ 846.815 $ 731.617 $ 52.263.149 The accompanying notes are an integral part of these combined financial statements. 4 EXHIBIT 1 Total primary Component Totals Account Groups government unit reporting entity General General long- (memorandum School (memorandum only) fixed assets term debt only) District 2000 1999 $ $ $ 1,637,748 $ 14,946,489 1,038,088 365,854 16,027 284,871 58,364 2,628.748 277,007 8,164 7,595,000 - - 84,151 101,451,830 148,207,460 - 1,941,032 - $ 1,637,748 $ 118,323 - 14,946,489 11,472,886 389,608 389,608 320,593 3,720 1,041,808 878,572 872,803 1,238,657 1,138,188 198,474 214,501 39,383 - 284,871 203,119 - 58,364 71,795 1,082,281 3,711,029 4,465,776 2,463,504 2,463,504 2,953.847 224,210 501,217 521,145 - 8,164 8,424 7,595,000 7,805,000 - - 218,013 - 84,151 69,188 4,007,064 152,214,524 149,222,301 - 1,941,032 4,563,935 - 1,350.000 1,350.000 46,500 1,396.500 86,500 - 404,657 404.657 - 404.657 462,300 - 16,951.370 16.951.370 - 16.951.370 18.966.795 $ 101.451,830 $ 18.706.027 $ 197.795.030 $ 9,288.164 $ 207.083.194 $ 203.586.083 (continued) 5 �I KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT JUNE 30, 2000 (with comparative to tals for 1999) Proprietary Governmental Fund Types Fund Type Special Debt Capital General Revenue Service Projects Enterprise 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 unit Due to other funds Due to student organizations Current portion of notes payable Current portion of capital lease obligation Accrual for landfill closure and postclosure costs Notes payable Capital lease obligation Long -term interfund borrowings General obligation bonds payable Environmental Protection Agency loan Alaska Department of Environmental Conservation loans Total liabilities FUND EQUITIES AND OTHER CREDITS: Contributions in aid of construction, net Investment in general fixed assets Contributed capital Accumulated deficit Fund balances: Reserved: $ 86,436 $ 83,186 $ - $ 12,660 $ 297,892 - - - 3,707 78,750 48.475 118 - - - - 35.150 51,262 - 650 - - - 261.240 173.052 - 25,354 - 21,879 - - $ 846.815 $ 731.617 $ 52,263.149 - 2,528,819 - - - - 452,218 810,043 442,158 4,038 920,291 _ 592,013 _ - 261.984 2,066.758 _ - 2,231,467 1,074,993 7,595,000 1.067.049 442.158 15.170.410 45.759 3.399.067 _ _ - - 31,807,987 _ 5,382,203 _ (97,451) Encumbrances - 59,459 Fuel inventory - - - Long -term interfund borrowings - 7,595.000 - Subsequentyearexpenditures 341,900 35.150 - - - Unreserved 800.615 10.556.811 404.657 626.399 - Total fund equities and other credits 1.142.515 18.186.961 404.657 685.858 37,092.739 TOTAL $ 4,541.582 $ 19.254.010 $ 846.815 $ 731.617 $ 52,263.149 The accompanying notes are an integral part of these combined financial statements. l 1 1 EXHIBIT 1, continued Total primary Component Totals Account Groups government unit reporting entity General General long- (memorandum School (memorandum only) fixed assets term debt only) District 2000 1999 $ - $ $ 480.174 $ 201,332 $ 681,506 $ 918,758 _ - - 340,427 - 82.457 - 82,457 113.826 132,006 180.599 2,240,342 2,420,941 2,784,290 - 51,262 - 51,262 - - 650 - 650 600 - 459,646 136,963 596,609 317,400 1,350.000 1,350.000 86,500 1,436,500 125,500 - - 21.879 - 21,879 8,280 - - 2.528.819 - 2,528,819 2,953,847 - - 2,628,748 1,082.281 3,711,029 4,465,776 - - - 307,731 307,731 251,097 - 592.013 - 592,013 556,625 - 261.984 - 261,984 376,984 - 2,066.758 - 2,066.758 1,939,400 - - 2,231.467 - 2,231,467 2,310,230 - 1,074,993 - 1,074,993 640,783 - 7,595.000 - 7,595,000 7,805,000 17,025,000 17.025.000 - 17,025.000 18.910,000 93,749 93.749 - 93,749 114,583 105.272 105.272 - 105.272 104.947 - 18,706.027 38.830.470 4.055.149 42.885.619 45.038.353 - - 31,807.987 - 31.807,987 32,777,958 101,451,830 101,451.830 4,007,064 105,458,894 104,936.964 - 5.382.203 - 5,382,203 5,382,203 - (97,451) - (97,451) (779,624) 59.459 129.249 188,708 827,982 - - 208.449 208,449 185,783 - 7,595.000 - 7,595,000 7,805.000 - 377,050 46.500 423,550 922,104 - 12.388.482 841.753 13.230.235 6.489,360 101.451.830 - 158.964.560 5.233.015 164,197,575 158.547,730 $ 101,451.830 $ 18,706.027 $ 197,795.030 $ 9,288.164 $ 207.083,194 $ 203.586.083 7 1 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, 2000 (with comparative totals for 1999) Special Debt General Revenue Service REVENUES: Property taxes $ 6,623,808 $ 487,853 $ - Intergovernmental: State sources 1,109,903 963,227 Federal sources 660.137 32,291 - Land sale proceeds - 4,319,461 Severance taxes 1,175,650 - - E Licenses, permits, fees and other local revenues 128,864 240.042 - Investments and property 358,352 765,657 23,700 In -kind services Other - 6.623 - Total revenues EXPENDITURES: 10.056,714 6,815,154 23,700 Current: Borough Assembly 140.397 - - s Borough Manager 187,047 - Borough Clerk 226,573 - - Borough Attorney 197,868 - - Finance department 369,652 - - Assessing department 279,320 - - Community Development department 304,706 63,594 - Building Official 120,472 - - } Economic development 37,755 - - inistration General and Administration 177,874 1,354,049 ,20 0 Emergency Preparedness 2.791 - - School District Support 596,143 - - Health and Sanitation department 279,109 479,029 - Education, Culture and Recreation 161,500 - Management Information Systems 329,266 Capital outlay: k Schools i Service district maintenance 213,485 - General - Debt service: Principal - - 1,905,834 Interest 855,916 Fiscal agent fees - - 2.247 Total expenditures 3,410.473 2,110,157 2.768,197 Excess (deficiency) of revenue over (under) expenditures 6,646.241 4,704.997 (2,744,497) OTHER FINANCING (USES) SOURCES: Operating transfers in from component unit - - 1,621,398 Operating transfers in from other funds 21,746 682,044 1,091,113 Operating transfers in from primary government - - Operating transfers out to component unit (5,556,310) - - Operating transfers out to other funds (860,705) (581,418) (25,657) Operating transfers out to primary government - Proceeds from issuance of long -term debt - s Payment to refunded bond escrow agent and issue costs - - Net other financing (uses) sources (6,395.269) 100.626 2,686,854 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 250,972 4,805.623 (57,643) FUND BALANCES, at beginning of year 783,459 13,381,338 462,300 Residual equity transfers in (out) 108.084 - - Adjustments to reserve for fuel inventory y FUND BALANCES. at end of year $ 1,142.515 $ 18,186.961 S 404.657 The accompanying notes are an integral part of these combined financial statements. 8 EXHIBIT 2 V) Total Component 140.397 136,417 primary unit Totals - reporting entity Capital government School (memorandum only) Projects (memorandum only) District 2000 1999 197,868 $ - $ 7.111.661 $ - $ 7,111,661 $ 7,171,906 13,498 2,086.628 16.970.116 19,056.744 19,697,598 39,366 731,794 3,748.520 4,480,314 4,241,350 - 4,319,461 - 4,319.461 4,158,858 92,273 1,175.650 - 1,175,650 1,006,290 (9,630) 359,276 468,705 827,981 876,837 2,303 1,150.012 - 1,150.012 1,415,086 2,384 - 774,452 774,452 852,870 26,659,010 6.623 - 6.623 758,138 45.537 16.941.105 21,961.793 38,902.898 39,420.795 V) 140.397 140.397 136,417 187,047 187.047 254,593 226.573 226,573 287,720 197,868 197,868 155,800 369,652 369,652 562,370 - 279,320 279,320 318,896 - 368.300 368,300 491,954 - 120.472 120,472 92,273 - 37.755 - 37,755 72,225 - 1,536.123 - 1,536,123 1,677,757 - 2,791 - 2.791 2,384 - 596.143 26,017,009 26.613.152 26,659,010 - 758,138 - 758,138 1,148,706 - 161.500 161,500 196,300 - 329,266 329,266 - 5.487 5.487 5.487 963,893 - 213.485 213.485 303.797 144.628 144,628 144,628 4,166.635 - 1,905.834 1,905.834 1,915,833 855,916 855,916 852,040 - 2.247 - 2.247 1,612 150.115 8.438.942 26,017.009 34,455.951 40.260,215 (104.578) 8.502.163 (4,055.216) 4,446,947 (839,420) - 1,621.398 - 1,621.398 1,650.598 222.640 2,017.543 142.295 2,159.838 2,572,342 - - 5,556,310 5,556.310 5,655,840 (5,556.310) - (5,556,310) (5,655,840) (1.467.780) (142.295) (1,610,075) (2,939,473) (1,621,398) (1,621,398) (1,650,598) - - 9,769,485 - - - - (9,764.236) 222.640 (3.385.149) 3.934,912 549.763 (361.882) 1 18.062 5,117.014 (120.304) 4,996,710 (1,201,302) 271.041 14.898.138 1,332.091 16,230.229 17,668.760 296.755 404,839 - 404.839 (234.276) - - 14,164 14.164 (2.953) $ 685.858 $ 20.419.991 $ 1.225.951 $ 21.645.942 $ 16.230.229 V) KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL FUND, SPECIAL REVENUE FUNDS AND DEBT SERVICE FUNDS YEAR ENDED JUNE 30, 2000 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 Other 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 Management Information Systems Capital outlay: Service district maintenance Debt service: Principal Interest Fiscal agent fees Total expenditures $ 6,924,230 $6,623,808 $ (300,422) 1,128,500 1,109,903 (18,597) 695,250 660,137 (35,113) 1,044,250 1,175,650 131,400 136,325 128,864 (7,461) 250,000 358,352 108,352 10,178,555 10,056,714 (121,841) Net other financing (uses) sources (6,412,110) 146,520 140,397 6,123 192,170 187,047 5,123 267,270 226,573 40,697 202,000 197,868 4,132 387,540 369,652 17,888 283,720 279,320 4,400 359,060 304,706 54,354 144,600 120,472 24,128 49,000 37,755 11,245 241,587 177,874 63,713 5,500 2,791 2,709 576,835 596,143 (19,308) 313,067 279,109 33,958 168,200 161,500 6,700 343,836 329,266 14,570 3,680,905 3,410,473 270,432 Excess (deficiency) of revenues over (under) expenditures 6,497,650 6,646,241 148,591 OTHER FINANCING (USES) SOURCES: Operating transfers in from component unit - - - Operating transfers in from other funds - 21,746 21,746 Operating transfers to component unit (5 ,556,310) (5,556,310) - Operating transfers out to other funds (855,800) (860,705) (4,905) Net other financing (uses) sources (6,412,110) (6,395,269) 16,841 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses $ 85,540 250,972 $$ 165.432 FUND BALANCES, at beginning of year 783,459 Residual equity transfer in 108,084 FUND BALANCES, at end of the year $1,142,515 The accompanying notes are an integral part of these combined financial statements. 10 EXHIBIT 3 Special Revenue Funds 4,976 Debt Service Funds - - 6,008,535 Variance- 4,654,486 Variance- 4,200 30,200 favorable 479,029 favorable Budget Actual (unfavorable) Budget Actual (unfavorable) $ 462,100 $ 487,853 $ 25,753 $ - $ - $ - 946,843 963,227 16,384 - - - 128,310 32,291 (96,019) - - - 4,154,030 4,319,461 165,431 - - - 307,680 240,042 (67,638) - - - - 6,623 6,623 - - - 1,058,201 765.657 (292,544) 4,000 23,700 19,700 7,057.164 6,815.154 (242.010) 4,000 23,700 19.700 68,570 63,594 4,976 - - - 6,008,535 1,354,049 4,654,486 34,400 4,200 30,200 540,048 479,029 61,019 - - - 286,350 213,485 72,865 - - - - - - 1,922,340 1,905,834 16,506 - - - 841,850 855,916 (14,066) - - - 10,000 2,247 7,753 6,903.503 2,110,157 4,793.346 2,808,590 2,768,197 40,393 153,661 4,704.997 4,551,336 (2,804.590) (2,744,497) 60,093 - - - 1,496,690 1,621,398 124,708 - 682,044 682,044 1,064,591 1,091,113 26,522 - (581.418) (581.418) - (25,657) (25,657) - 100,626 100.626 2,561,281 2,686.854 125,573 $ 153.661 4,805,623 $ 4,651.962 $ (243.309) (57,643) $ 185,666 13,381,338 462,300 11 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, 2000 (with comparative totals for 1999) 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 Refuse disposal Contracted services Repairs and maintenance Landfill closure and postclosure costs Depreciation Support goods and services General and administration Medicaid refund Telephone services Recycling services Contributions Operating income OTHER INCOME (EXPENSES): Loss on disposal of fixed assets Interest income Interest expense Net (loss) income from continuing operations TRANSFER (TO) FROM OTHER FUNDS: Operating transfers in from other funds Operating transfers out to other funds Net operating transfers a 1 (8,669) Totals (483) reporting entity Internal (memorandum only) Enterprise Service 2000 1999 (313.231) 1,448,922 $ 1,697,403 $ $ 1,697,403 $ 1,638,078 975,557 975,557 855.554 44.883 44.883 67,327 63,695 - 63,695 708,332 2.214.342 2,214,342 1,715,891 354.557 354,557 520.253 5,350,437 - 5,350,437 5,505.435 465.852 465,852 887,770 1,176.729 1,176,729 1.131,856 298,831 - 298,831 139,565 349,613 - 349,613 313,334 308.056 308,056 42,891 128.623 - 128,623 (260,731) 2,119.851 2,119,851 759,736 3,359 - 3,359 156,508 240.606 240,606 471,743 27,494 - 27,494 21200 35,909 35,909 31,379 64,900 64,900 64,110 8.801 8,801 23.524 5.228.624 5.228.624 3,763.885 121.813 121.813 1,741.550 a 1 (8,669) (8,669) (483) 91,984 - 91,984 21,086 (249.089) (43,961) (249.089) (43,961) (313.231) 1,448,922 Net effect of residual equity transfer - 227.598 227,598 - - - 786,000 (549.763) - (549.763) (978.869) (549,763) - (549,763) (192,869) Amortization of contributions in aid of construction 1.048.299 - 1.048.299 54.340 Increase in retained earnings 454,575 - 454,575 1,310,393 Accumulated deficits at beginning of year (552,026) (227.598) (779,624) (2,090,017) Net effect of residual equity transfer - 227.598 227,598 - Retained earnings (accumulated deficits), at end of year $ (97.451) $ - $ (97.451) $ (779,624) The accompanying notes are an integral part of these combined financial statements. 12 I I KODIAK ISLAND BOROUGH EXHIBIT 5 COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) Totals reporting entity 1 Internal (memorandum only) Enterprise Service 2000 1999 OPERATING INCOME ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation Loss on disposal of fixed assets Net assets received from residual equity transfer Changes in assets and liabilities, net of effects of the transfer of assets and liabilities from other funds: Accounts receivable: Customers Other 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 operating activities CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES: II� Operating transfers out to other funds Operating transfers in from other funds Net cash provided by noncapital financing activities II lJ 11 U $ 121,813 $ - $ 121,813 $ 1,741,550 2,119,851 - 2,119,851 759,736 8,669 - 8,669 24,036 _ _ - 1,486 (266,877) - (266,877) (17,950) (471) _ _ - 8,424 (2) - (2) 2 (344,506) - (344,506) 841,530 56,057 - 56,057 (18,270) (60,000) - (60.000) - 127,358 - 127,358 (260,731) _ _ - (38,583) 472 - 472 5,760 1,641,022 - 1,641,022 1,304,969 1,762,835 - 1,762,835 3,046.519 (549,763) - (549,763) (978,869) 786,000 (549,763) - (549,763) (192,869) (continued) 1 13 KODIAK ISLAND BOROUGH EXHIBIT 5, continued COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES (continued) f YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) Totals reporting entity Internal (memorandum only) Enterprise Service 2000 1999 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 Contributions in aid of construction Net cash used in capital and related financing activities: CASH FLOWS FROM INVESTING ACTIVITIES: Change in restricted assets: Deductions from (additions to) restricted cash Deductions from restricted investments Interest and dividends on investments Net increase (decrease) in 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 end of year $ (898,109) $ - $ (898,109) $ (368,614) (223,438) - (223,438) (313,231) (195,000) - (195,000) - 513,249 - 513,249 418,869 (556,625) - (556,625) (525,666) (308,401) - (308,401) (367,726) 265,662 - 265,662 - (1,402,662) - (1,402,662) (1,156,368) 218,013 - 218,013 (9,810) - - - 139,520 81,065 - 81,065 19,977 223,603 - 223,603 (1,988,878) 522,681 - 522,681 (1,839,191) 333,091 - 333,091 (141,909) 100 - 100 142,009 $ 333,191 $ - $ 333,191 $ 100 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: Contributions in aid of construction received $ 695,708 $ - $ 695,708 $ 30,529,979 NONCASH NONCAPITAL FINANCING ACTIVITIES Residual equity transfers (296,755) 227,598 (69,157) 234,276 $ 398,953 $ 227,598 $ 626.551 $ 30.764,255 The accompanying notes are an integral part of these combined financial statements. 14 L 1 KODIAK ISLAND BOROUGH NOTES TO THE COMBINED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2000 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reportine 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 (the 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. 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. Interfund eliminations have not been made in the aggregation of these data. Reclassification: Certain 1999 balances have been reclassified to conform to the current year presentation. !J 1 15 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 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 is 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, severance taxes, licenses and interest 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. 16 L� U 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 applicable Governmental Accounting Standards Board (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. 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 lst. 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 1 17 severance tax revenues are recognized in the fiscal year in which they become measurable and available. To ensure accuracy in the amounts of fish and other seafood caught, the Borough compares the amount of catch reported on the severance tax returns to amounts reported to the State of Alaska Department of Revenue and the State of Alaska Department of Fish and Game. For rock, gravel, and timber, the assessing office periodically does a site review of the mining/logging area to determine the reasonableness of gross amounts reported on the severance tax returns. Intergovernmental Revenue State - shared revenues, municipal assistance, State - education related entitlement programs and State - levied taxes, the proceeds of which are distributed to local governments, are recorded in the fiscal year to which they relate, including accrual at year-end if final payments due are measurable and received within approximately two months after year-end. State of Alaska and Federal government cost reimbursable grants and contracts are recorded to the extent of allowable expenditures in the period in which the expenditures were incurred. Revenue from Investments and Propert y : 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: 1. 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. 18 � I 1 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. 4. Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or administrative action. Generally, the following actions are required at the level of the particular change: a. All new appropriations are authorized by an appropriation ordinance that amends the annual budget ordinance. b. A resolution of the Borough Assembly is required to move (appropriate) amounts between departments and projects. c. The administration is authorized and directed by the Borough Assembly to effect the necessary line item changes within the limits established by Items (1) and (2) above by project or department to properly monitor, account, and report receipts and expenditures. 5. Expenditures may not legally exceed appropriations at the following levels: Capital Projects Funds - project level, all other funds - department level. 6. All funds, except Capital Projects Funds, 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. 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. 1 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, 2000 there are no significant amounts of such inventories on hand. The Hospital Enterprise Fund also has at June 30, 2000, 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 or the Alaska Teachers' Retirement System . The Borough and School District accrue pension expense that includes current costs and amortization of prior service costs. The policy is to fund pension costs accrued. Annual Leave The Borough records its liability for accrued annual leave in the Governmental Fund Types for the amounts estimated to be liquidated with current available resources. The commitment for accrued annual leave not included in the Governmental Fund Types is recorded in the General Long -Term Debt Account Group. All funds record annual vacation leave as earned. 20 1 E. Cash Flows All highly liquid investments, excluding 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 Reporting Standards 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. In June 1998, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and Hedging Activities, which is effective for all fiscal years beginning after June 15, 2000. SFAS 133 establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities. Under SFAS 133, certain contracts that were not formerly considered derivatives may now meet the definition of a derivative. The Borough intends to adopt SFAS 133 for all enterprise funds effective July 1, 2000. Management does not expect the adoption of SFAS 133 to have a significant impact on the financial position or results of operations of the Borough's enterprise funds because the Borough's enterprise funds do not have significant derivative activity. NOTE 2: CASH AND TEMPORARY INVESTMENTS Cash balances of most Borough funds are pooled in a central treasury. Each fund type's portion of this pool is displayed on the combined balance sheet as "Equity in central treasury." In addition, investments are separately held by several of the Borough's funds. Investments are carried at fair value, as determined by quoted market prices. 21 At June 30, 2000, the carrying amount of the Borough and its Component Unit deposits was $1,636,998 and the corresponding bank balance was $2,397,232. The year -end bank balance is 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 $4,000,000, is held by the pledging financial institution's trust department or agent in the Borough's name. Investments: Statutes authorize the Borough to invest in obligations of the United States, the State of Alaska and its political subdivisions, savings accounts, certificates of deposit, banker's acceptances, repurchase agreements and such other legal security instruments. The Borough Code requires all investments to be collateralized and/or insured. Collateral pledged on investments is required to be held for the Borough by a third -party bank. 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, 2000, the Borough's investment balances were categorized as follows: Category Carrying 1 2 3 amount Investments - categorized: U.S. Government Securities $12,618,475 $ - $ - $12,618,475 Investments - not categorized: Alaska Municipal League Investment Pool 2,328,014 Total Investments $14,946,489 The Alaska Municipal League Investment Pool (AMLIP) is considered to be an external investment pool as defined by GASB Statement No. 31. AMLIP is not SEC - registered. Alaska Statute 37.23 establishes regulatory oversight of the pool. The law sets forth numerous requirements regarding authorized investments and reporting. The pool is incorporated in the State of Alaska as a nonprofit corporation and reports to its Board of Directors. Alaska Statute 37.23.050 requires the retention of an investment manger. The manager is required to produce monthly disclosure statements to the pool. The pool also has retained an investment advisor to ensure compliance with investment policies. All participation in the pool is voluntary. The pool must maintain a dollar- weighted average maturity of 90 days or less, and only purchase instruments having remaining maturities of 397 days or less. On a monthly basis, the investments in the pool are reviewed for fair value by an independent pricing service. As of June 30, 2000 the fair value of the investment in the pool approximates amortized cost. 22 1 I The above bank deposits of $1,636,998, investments of $14,946,489 plus cash on hand of $750 totaling $16,584,237 are reported under the following captions in the combined financial statements: Equity in central treasury cash $ 1,637,748 Temporary investments 14,946,489 Total deposits and investments $ 16,584,237 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 is made to the School District in order to provide the School District with total resources in a fiscal year equal in amount to budgeted expenditures. In addition to the annual appropriation, the Borough provides the School District, without charge, general liability and property insurance, 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. NOTE 4: RETIREMENT COMMITMENTS The School District, a component unit of the Borough, participates in the Alaska State Teachers' Retirement System (TRS), a cost - sharing, multiple - employer pension plan that covers the School District's certificated employees. The Alaska Public Employees' Retirement System (PERS), covers most of the employees not covered by TRS and all Borough employees. 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 110203, Juneau, Alaska 99811 -0203. A. PERS Plan description: All regular employees of the Borough who work more than fifteen hours per week participate in PERS. PERS is an agent multiple - employer, statewide defined benefit plan, administered by the State of Alaska. Benefit and contribution provisions are established by Chapter 35 of Alaska Statute Title 39, and may be amended only by state legislature. 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 23 1 ri 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 7.28 percent of annual covered payroll. Annual pension cost: For the year ended June 30, 2000, the Borough's annual pension cost was $146,118 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, 1998. 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 actuarial value of PERS assets was determined using techniques that smooth the effects of short-term volatility in the fair value of investments over a five year period. 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 a rolling 25 years, which is an open amortization period. The percentage of pay method is used for amortization purposes. Three -year trend information for PERS B. Component Unit Retirement Commitments I 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, 2000, 1999, and 1998, the School District's annual 24 1 Annual Percentage Net Year pension of APC pension ended cost (APC) contributed obligation 6/30/1998 $180,700 100% $ 6/30/1999 185,634 100% - 6/30/2000 146,118 100% - B. Component Unit Retirement Commitments I 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, 2000, 1999, and 1998, the School District's annual 24 1 pension cost was $271,733, $176,670, and $184,491 and equal to the required and actual contributions. TRS is a cost - sharing, multiple - employer defined benefit cost sharing plan. Benefit and contribution provisions are established by Chapter 25 of Alaska Statute Title 14, and may be amended only by the state legislature. 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, 2000, 1999, and 1998, the School District's annual pension cost for TRS was $1,391,110, $1,600,327, and $1,317,184, which was equal to the required and actual contribution. C. Required Supplementary Information - Schedule of Funding Progress for PERS (Dollar amounts in thousands and amounts for the primary government only) 25 Actuarial Funding Actuarial accrued Funding 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) 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% 6/30/1999 9,886 8,535 1,351 116% 1,864 72.5% 25 NOTE 5: FIXED ASSETS A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 2000 follows: Government Land Buildings Improvements other than buildings Machinery and equipment Construction work -in- progress July 1, 1999 Additions Deductions June 30, 2000 $ 5,397,391 $ 38,992 $ 1,392 88,432,326 379,260 - 890,721 2,840,377 - 1,509,219 377,479 95,959 4,836,779 36,906 3,190,269 $101,066,436 $ 3,673,014 $ 3,287,620 $ 5,434,991 88,811,586 3,731,098 1,790,739 1,683,416 $ 101,451,830 The following is a summary of Proprietary Fund fixed assets at June 30, 2000: Enterprise Funds Unclassified utility plant in service $ 2,205,383 Land and improvements 1,431,066 Building and improvements 44,040,019 Equipment 7,543,525 Construction work -in- process 1,941,032 57,161,025 Less: accumulated depreciation (8,464,363) Net fixed assets $48,696,662 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 I General Obligation NOTE 6: LONG -TERM DEBT The following is a summary of long -term debt for the year ended June 30, 2000: Bonds - 1998 Series 3.25- 4.30% 8/15 -2/15 12/7/1998 2/15/2014 2 /15/2001 2/15/2002 2/15/2003 2/15/2004 2/15/2005 2/15/2006 2/15/2007 2/15/2008 2/15/2009 2/15/2010 2/15/2011 2/15/2012 2/15/2013 2/15/2014 Accrued annual leave 0.00% Judgement payable (See Note 19) State of Alaska ADEC loans Clean Water - Karluk 3.92-4-05% ** ** ** ** 105,272 $ 18.7 * 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 50,000 50,000 50,000 55,000 55,000 60,000 60,000 1,150,000 1,200,000 1,250,000 1,305,000 1,360,000 1,420,000 1,480,000 9,545,000 132,006 1,350,000 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 12/31/2004 12/31/2000 $ 10,417 06/30 and 12/31 2000 thru 2004 8 x 10.417 93,749 General Obligation School Refunding Bonds - 1989 Series 6.6 -8.0% 8/1 -2/1 5/1/1989 8/1/2000 8/1/2000 1,155,000 General Obligation Bonds - 1993 Series 3.90 - 7.00% 8/15 -2/15 11/1511993 2/15/2006 2/15/2001 790,000 2/15/2002 825,000 2/15/2003 860,000 2/15/1904 900,000 2/15/2005 940,000 2/15/2006 980,000 5,295,000 General Obligation Bonds - 1994 Series 5.40 - 5.50% 8/15 -2/15 11/15/1993 2115/2007 2 115/2007 1,030.000 NOTE 6: LONG -TERM DEBT The following is a summary of long -term debt for the year ended June 30, 2000: Bonds - 1998 Series 3.25- 4.30% 8/15 -2/15 12/7/1998 2/15/2014 2 /15/2001 2/15/2002 2/15/2003 2/15/2004 2/15/2005 2/15/2006 2/15/2007 2/15/2008 2/15/2009 2/15/2010 2/15/2011 2/15/2012 2/15/2013 2/15/2014 Accrued annual leave 0.00% Judgement payable (See Note 19) State of Alaska ADEC loans Clean Water - Karluk 3.92-4-05% ** ** ** ** 105,272 $ 18.7 * 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 50,000 50,000 50,000 55,000 55,000 60,000 60,000 1,150,000 1,200,000 1,250,000 1,305,000 1,360,000 1,420,000 1,480,000 9,545,000 132,006 1,350,000 Authorized Prior Years Current Year Fiscal Balance at Retired/ Balance at Year Amount Issued Retired July 1. 1999 Issued Refunded June 30, 2000 1985 $ 375,000 $ 375,000 $ 260,417 $ 114,583 $ - $ 20,834 $ 93,749 1989 10,000,000 10,000,000 7,765,000 2,235,000 - 1,080,000 1,155,000 1994 9,215,000 9,215,000 3,160,000 6,055,000 - 760,000 5,295,000 1994 9,985,000 9,985,000 8,955,000 1,030,000 - - 1,030,000 1999 9,740,000 9,740,000 150,000 9,590,000 - 45,000 9,545,000 2000 - - - 122,141 35,521 25,656 132,006 - - - 1,350,000 - 1,350,000 1998 400.000 104.947 - 104.947 325 - 105,272 $ 39,715.000 $ 39,419.947 $ 20.290.417 $ 19.251.671 $ 1.385.846 $ 1.931.490 $18.706.027 29 The annual requirements to amortize all general obligation bonded debt and the EPA loan payable outstanding as of June 30, 2000, including interest payments of $5,761,116 on the general obligation debt, are as follows: General EPA Loan June 30, obligation payables Total 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 2005 1,544,3 85 10,417 1,554,802 Thereafter 13,866,439 - 13,866,439 $ 22,786.116 $ 93,749 $ 22,879,865 The amount of $272,651 is available in the Debt Service Funds to service all general obligation bonds. There are a number of limitations and restrictions contained in the various bond indentures. The Borough is in compliance with all significant limitations and restrictions. 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. I V 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, 2000 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 On October 3, 2000, the citizens of the Kodiak Island Borough passed a ballot question giving the Borough the authority to issue $2,660,000 in bonds to fund two Kodiak Island Borough School District projects; Peterson Elementary upgrade and repair of the Kodiak High School roof. The Alaska Department of Early Education and Development approved these projects for reimbursement. The state will reimburse the Borough for seventy percent of the principal and interest payments. The Peterson project has all ready been completed and paid for. The High School roof is scheduled to be completed by the fall of 2001. The bond transaction is expected to conclude the beginning of December 2000. NOTE 7: LONG -TERM INTERFUND BORROWINGS In October 1997 the Facilities Special Revenue Fund loaned $8,000,000 to the Kodiak Fisheries ' Research Center Enterprise Fund. The loan from the Facilities Special Revenue Fund is accounted for as a long -term interfund advance, while the liability in the Kodiak Fisheries Research Center 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 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 2005 275,000 471,625 746,625 Thereafter 6,600,000 3,734,150 10,334,150 $ 7,805,000 $ 6,266,225 $ 14,071,225 31 NOTE 8: CAPITAL LEASE OBLIGATION The Hospital Enterprise Fund leases various equipment under a long -term lease agreement at the nominal annual interest rate of 5.86 percent. The initial cost of such equipment included in fixed assets at June 30, 2000, is approximately $1,443,095. Accumulated amortization on the leased equipment is approximately $106,118 at June 30, 2000. The minimum required lease payments under the capital leases for the next four fiscal years ended are as follows: June 30, 2001 $ 333,336 2002 333,336 2003 333,336 2004 527,784 1,527,792 Less amount representing interest (190,815) $ 1,336,977 NOTE 9: NOTES PAYABLE As of June 30, 2000, 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 Note payable to Environmental Protection Agency, to be paid within 20 years at 3.8% interest, tenors to be negotiated with EPA upon completion of the project Less current portion of note payable $1,891,362 W211 I 1 0 2,823,480 (592,013) $ 2,231,467 32 1 1 11 Future required minimum principal payments at June 30, 2000 excluding payments to the EPA for the fiscal years ended are as follows: June 30, 2001 $ 592,013 2002 629,658 2003 669,691 $ 1,891,362 NOTE 10: CAPITAL PROJECT FUNDS CONSTRUCTION COMMITMENTS A summary of Capital Projects Funds construction commitments at June 30, 2000 follows: State Capital Grants $ 59,459 Resources are presently available or committed to finance construction commitments at June 30, 2000, 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, 2000, for those funds are as follows: Municipal Solid Waste Collection Hospital and Disposal Facilities Amortization of contributions Operating revenues $ 2,684,855 $1,107,545 Depreciation 98,160 1,274,984 Operating income (loss) 68,670 (210,777) Operating transfers out - 2,119,851 Net income (loss) 67,745 (420,951) Kodiak 911 Fisheries 598,538 Services R esearch Cente Total $ 63,695 $1,494,342 $ 5,350,437 - 746,707 2,119,851 27,786 236,134 121,813 - (549,763) (549,763) 27,786 281,459 (43,961) in aid of construction 52,409 598,538 - 397,352 1,048,299 Property, plant and equipment additions (deletions), net 702,708 (57,320) - 60,081 705,469 Net working capital 596,015 (60,242) 31,444 797,078 1,364,295 Total assets 5,211,982 26,352,662 31,444 20,667,061 52,263,149 Bonds and other long -term liabilities: Payable from operating revenue 2,998,876 2,374,342 - - 5,373,218 Payable from other sources - - - 7,595,000 7,595,000 Total equity 1,620,375 22,968,316 31,444 12,472,604 37,092,739 33 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. 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, 2000, was $81,877. 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 in good standing of the Alaska Municipal League Joint Insurance Association (JIA), a governmental insurance pool established by the Alaska Municipal League. Claims are covered on an occurrence basis. JIA provides risk management services, appraisal services and there is also a separate pool for policy liability. The responsibilities of both JIA and the participants are as follows: Responsibilities of JIA JIA shall perform the following instructions in discharging its responsibilities: 1. Provide insurance coverage as necessary 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 2. Assist each participant's assigned risk manager with the implementation of that ' function. 3. Provide loss prevention and safety and consulting services to participants as required. 4. Provide claims adjusting and subrogation services for claims covered by the association's joint insurance arrangement. Responsibilities of the Participants ' The Participants shall have the following responsibilities: 1. The Borough Assembly or appointing official of each participant shall appoint a representative as provided in Article 5, Section 2 of the bylaws and at least one alternate representative to attend member meetings. 2. Each participant shall appoint an employee of the participant to be responsible for the risk management function within that entity and to serve as a liaison between the participant and JIA with respect to risk management. ' 3. Each participant shall maintain an active safety officer and/or committee, and shall comply with all recommendations of JIA concerning the development and implementation of a loss control policy to prevent unsafe practices. 4. Each participant shall maintain its own set of records as a loss log, in all categories of loss to ensure accuracy of JIA's loss reporting system. i 1 35 NOTE 14: INDIVIDUAL FUND DISCLOSURES Interfund Receivables and Pavables A summary of interfund receivables and payables at June 30, 2000, is as follows: General Fund Special Revenue Funds: Mental Health Center Child Care Assistance Program Welfare to Work Program Land Sales Kodiak Transit Authority Building and Grounds Coastal Management L.E.P.C. Road Service District No. 1 Fire Protection Area No. 1 Kodiak Airport Fire District Kodiak Arts Council Facilities Fund Debt Service Funds: Debt Service Capital Project Funds: State Capital Grants Enterprise Funds: Municipal Solid Waste Collection and Disposal Hospital Facilities Kodiak Fisheries Research Center Component units: School District Receivable Payable $ 745,074 $ 2,981,037 - 323,149 20,418 45,255 - 31,898 200,012 517 - 2,837 - 325,184 - 17,581 - 11,410 - 3,334 434,162 - 11,410 - - 48,878 7,941,588 - 442,158 323,149 4,038 147,935 299,303 - 147,995 400,000 8,067,993 2,528,819 - $12,752,567 $ 12,752,567 The Kodiak Fisheries Research Center Enterprise Fund borrowed $8 million from the Facilities Special Revenue Fund. As of June 30, 2000, the outstanding principal amount owing was $7,805,000. See Note 7 for additional information regarding the interfund borrowings. 36 Fund Deficits and Accumulated Deficits: The fund deficits and accumulated deficits at June 30, 2000, are as follows: Special Revenue Funds: Mental Health Center $ 323,299 Coastal Management 147 Buildings and Grounds 306,327 Enterprise Fund: Municipal Solid Waste Collection and Disposal 1,306,845 $ 1,936,618 Management intends to fund the Special Revenue Funds deficits in fiscal year 2001 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 were moved to the General Fund in fiscal year 2000. Overatina Transfers Interfund operating transfers and transfers from the component unit have been made in accordance with budget ordinances. Funds are transferred from one fund to support expenditures of other funds in accordance with the authority established for the individual fund. Transfers between fund types and component units during the year ended June 30, 2000, were as follows: Fund Tvpes General Fund Special Revenue Funds Debt Service Funds Enterprise Fund -KFRC Component unit School District Total transfers 1,621,398 - - 1,621,398 - - $ 9,195,251 $ 21,746 $ 682,044 $ 2,712,511 $ 222.640 $ 5,556,310 37 Transfers In School Special Debt Capital District Transfers General Revenue Service Projects component Out Fund Funds Funds Funds unit $ 6,417,015 $ - $ 27,770 $ 810,935 $ 22,000 $ 5,556,310 581,418 - 100,600 280,178 200,640 - 25,657 21,746 3,911 - - - 549,763 - 549,763 - - - 1,621,398 - - 1,621,398 - - $ 9,195,251 $ 21,746 $ 682,044 $ 2,712,511 $ 222.640 $ 5,556,310 37 Residual Equity Transfers Effective July 1, 1999, the operations of the Management Informations Systems Fund were transferred to the General Fund. At July 1, 1999, $33,902 of liabilities were transferred to the General Long -term Debt Account Group, $315,602 of net fixed assets were transferred to the General Fixed Asset Account Group and $108,084 of net assets were transferred to the General Fund. The transfers of net assets out of the Management Informations Systems Fund and into the General Fund are shown as a residual equity transfer. Effective July 1, 1999, accounting for the waste management upgrade was transferred from the Capital Projects — State Grants Fund to the Enterprise — Municipal Solid Waste Collection and Disposal Fund. Accordingly, all assets and liabilities, including a fund deficit of $296,755, were transferred as of July 1, 1999. Excess of Expenditures/Expenses Over AvvropriationsBudeets General Fund The following department expenditures exceeded their appropriations: Department Excess School District support $ 19,308 Special Revenue Funds The following funds' expenditures exceeded their appropriations: Fund Excess Building and Grounds $ 153,522 Monashka Bay Road Service Area 437 $ 153,959 Enterprise Funds The following funds' expenses exceeded their budgets: Fund Excess Municipal solid waste collection and disposal $ 169,445 Hospital Facilities 574,190 $ 743,635 38 Proprietary Funds' reconciliation of contributed capital for the year ended June 30, 2000, is as follows: Enterprise Funds Kodiak Fisheries Research Hospital Center Facilities Contributed capital at beginning and end of year $ 215.486 $ 5,166,717 Proprietary Funds' reconciliat of contributions in aid of construction for the year ended 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 $2,066,758 as of June 30, 2000, which is based on 60.52 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, 2000, an increase of $127,358 was recorded in the current year based on current year usage and changes in estimates. An estimated additional $1,348,242 will be recognized as closure and postclosure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to ' capacity. The estimated total current cost of the landfill closure and postclosure care of 39 June 30, 2000, is as follows: Enterprise Funds Kodiak Municipal Solid Internal ' Fisheries Research Waste Collection Hospital Service Center and Disposal Facilities Fund Net contributions in aid of construction at beginning of year $ 11,920,540 $ 2,283,920 $17,956,116 $ 617,382 Amortization of contributions in aid of construction (397,351) (52,409) (598,538) - Residual equity transfer - - - (617,382) State of Alaska 276,840 Other - 418,869 - - Net contributions in aid of construction at end of year $ 11,523,189 $ 2,927,220 $17,357,578 $ - 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 $2,066,758 as of June 30, 2000, which is based on 60.52 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, 2000, an increase of $127,358 was recorded in the current year based on current year usage and changes in estimates. An estimated additional $1,348,242 will be recognized as closure and postclosure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to ' capacity. The estimated total current cost of the landfill closure and postclosure care of 39 $3,415,000 is based on the amount that would be paid if the landfill were closed as of June 30, 2000. 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 Engineering/Facilities Director. 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 $22,194,266 to date, and will receive the balance of the sale in the following payments: October 1, 2000 $ 4,000,000 2001 4,000,000 2002 11,805,734 Six million of the proceeds were 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 AND MENTAL HEALTH FACILITIES 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 Kodiak Island Medical Center (Providence), who assumed responsibility for the hospital's operations as of April 21, 1997. The lease agreement is effective for a term of ten years from that date and contains provisions for an additional ten -year option. The hospital fixed assets, the lease income, and all other costs relating to the agreement are accounted for by the Borough in the Hospital Enterprise Fund. Under the 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. M 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. ' MENTAL HEALTH CENTER SPECIAL REVENUE FUND ' The Kodiak Island Borough Assembly passed an ordinance to cease operations of the Kodiak Island Mental Health Center, effective January 1, 1998, and to lease the mental health premise and equipment to Sisters of Providence d.b.a. Providence Health System in Alaska, who assumed ' responsibility for the center's operations as of January 2, 1998. The lease agreement is effective for a term of ten years from that date and contains provisions for an additional ten -year option. The center's fixed assets, the lease income, and all other costs relating to the agreement are accounted for by the Borough in the Mental Health Special Revenue Fund. Under the terms of the agreement, certain assets have been transferred to Providence and certain liabilities assumed by them. The excess, if any, of current assets over current liabilities shall accrue to the sole financial benefit of Providence to offset the Mental Health Center operating losses. The agreement with Providence specifies that the Borough be required to fund any major maintenance and repairs projects exceeding $10,000 in cost. At any time either the Borough or Providence may terminate the agreement by one year's written notice to the other party. NOTE 18: CONTINGENCIES General The Borough, in the normal course of its activities, is involved in various claims and pending litigation. After consultation with legal counsel, management estimates that these matters will be resolved without material adverse effect on the Borough's future financial position or results of operations. .3l IJ Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by the grantor agencies. Any disallowed claims, including amounts already collected, would become a liability of the General or other applicable funds. In management's opinion, disallowances, if any, will not be material. NOTE 19: SUBSEQUENT EVENTS I On December 12, 2000, the Borough issued $2,660,000 of general obligation bonds to finance ' school upgrades and for the refunding of general obligation bonds for Peterson Elementary. The interest rates on the bonds range from 4.75 -8.875 percent and mature in varying amounts from 2002 through 2011. ' On December 14, 2000, a judgment in the amount of $1.35 million was rendered against the Borough in a matter involving alleged misconduct of a former Borough employee. The Borough ' has elected to appeal the judgment. Although the ultimate outcome of the appeal is not presently determinable, it is the opinion of Borough legal counsel that resolution will not occur for at least eighteen months. Accordingly, the Borough has recorded the judgment in the General Long -term ' Debt Account Group. 1 42 1 n 1 t 1 GENERAL FUND 1 1 '1 0 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 GENERAL FUND BALANCESHEETS J UNE 3 2000 AND 1999 2000 1999 ASSETS Equity in central treasury Temporary investments Accounts receivable Due from State of Alaska Due from other funds Property taxes: Delinquent taxes Allowance for uncoilectible delinquent taxes Accrued interest TOTAL LIABILITIES AND FUND BALANCES LIABILITIES: Cash overdraft Accounts payable Payroll taxes and employee benefits Deferred tax revenue Due to the City of Kodiak Due to component unit Due to other funds Total liabilities FUND BALANCES: Reserved for subsequent year expenditures Unreserved Undesignated Total fund balances TOTAL $ 650 2,983,700 302,839 173,353 745,074 $ 117,779 4,250,991 338,877 40,550 1,401,459 300,700 (15,829) 51,095 $ 4,541,582 86,436 48,475 261,240 21,879 2,528,819 452,218 3,399,067 341,900 EXHIBIT A -1 218,947 (15,828) 98,895 $ 6,451,670 $ 340,427 140,675 88,360 5,026 8,280 2,953,847 2,131,596 5,668,211 800,615 783,459 1,142,515 783,459 $ 4,541,582 $ 6,451,670 43 1 KODIAK ISLAND BOROUGH EXHIBIT A -2 ' GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 2000 REVENUES: Property taxes: Real Personal Motor vehicle Penalty and interest Total property taxes Severance taxes: Fish Mining Logging Total severance taxes Intergovernmental: State sources: State shared revenue Municipal assistance Raw fish tax Payments in lieu of taxes Electric Co -op tax Miscellaneous Total state sources Federal sources: Payments in lieu of taxes Miscellaneous Total federal sources Total intergovernmental revenue Licenses, permits, fees and other local revenues: Building and trailers Subdivision and zoning fees Sale of copies Emergency medical services Miscellaneous Total licenses, permits, fees and other local revenues Investments and property: Interest income Total investments and property Total revenues Variance- favorable 1999 Budget Actual (unfavorable) Actual $ 5,488,860 $ 5,329,052 $ (159,808) $ 5,340,231 1,095,370 999,684 (95,686) 1,006,687 200,000 183,479 (16,521) 165,780 140,000 111,593 (28,407) 175,399 6,924,230 6,623,808 (300,422) 6,688,097 950,000 1,051,378 101,378 900,331 9,250 11,450 2,200 10,269 85,000 112,822 27,822 95,690 1,044,250 1,175 ,650 131,400 1,006,290 119,820 119,821 1 290,063 131,920 122,097 (9,823) 197,785 828,560 833,981 5,421 918,010 26,200 21,161 (5,039) 22,872 8,000 12,843 4,843 12,029 14,000 - (14,000) - 1,128,500 1,109,903 (18,597) 1,440,759 483,270 448,310 (34,960) 437,084 211,980 211,827 (153) 177,960 695,250 660,137 (35,113) 615,044 1,823,750 1,770,040 (53,710) 2,055,803 60,000 68,598 8,598 60,708 4,000 4,300 300 7,100 1,200 19,399 18,199 1,625 33,000 - (33,000) 30,665 38,125 36,567 (1,558) 50,711 136,325 128,864 (7,461) 150,809 250,000 358,352 250.000 10,178,555 358.352 10,056.714 C!1 108,352 238,515 108,352 238,515 (121.841) 10,139,514 (continued) [7 t r 1 1 E 1 1 1 r 1 r� 'I. f 1 I 1 1 1 L t 1 i t KODIAK ISLAND B OROUGH EXHIBIT A -2, continued GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) EXPENDITURES: Borough assembly Borough mayor Borough clerk Borough attorney Finance department Assessing department Community development department Building official Economic development General and administration Emergency preparedness School District support Health and sanitation department Education, culture and recreation Management information systems Total expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES (USES): Operating transfers in from other funds Operating transfers to other funds Operating transfers to component unit Net other financing uses Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses $ 85,540 FUND BALANCES, at beginning of year Residual equity transfer in - Management Information Systems Fund FUND BALANCES, at end of year 250,972 $ 165,432 783,459 108,084 $ 1,142,515 45 (785,746) 1,569,205 $ 783,459 2000 Variance- favorable 1999 Budget Actual (unfavorable) Actual $ 146,520 $ 140,397 $ 6,123 $ 136,417 192,170 187,047 5,123 254,593 267,270 226,573 40,697 287,720 202,000 197,868 4,132 155,800 387,540 369,652 17,888 562,370 283,720 279,320 4,400 318,896 359,060 304,706 54,354 417,268 144,600 120,472 24,128 92,273 49,000 37,755 11,245 72,225 241,587 177,874 63,713 224,626 5,500 2,791 2,709 2,384 576,835 596,143 (19,308) 731,980 313,067 279,109 33,958 401,680 168,200 161,500 6,700 196,300 343,836 329,266 14,570 - 3,680,905 3,410,473 270,432 3,854,532 6,497,650 6,646,241 148,591 6,284,982 - 21,746 21,746 32,632 (855,800) (860,705) (4,905) (1,447,520) (5,556,310) (5,556,310) - (5,655,840) (6,412,110) (6,395,269) 16,841 (7,070,728) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses $ 85,540 FUND BALANCES, at beginning of year Residual equity transfer in - Management Information Systems Fund FUND BALANCES, at end of year 250,972 $ 165,432 783,459 108,084 $ 1,142,515 45 (785,746) 1,569,205 $ 783,459 1 I � KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) EXHIBIT A -3 I 2000 EXPENDITURES: Borough assembly: Personnel services Fringe benefits Support goods and services Political lobbyist Total Borough assembly Borough mayor Personnel services Fringe benefits Support goods and services Capital outlay Total Borough mayor Borough clerk: Personnel services Fringe benefits Support goods and services Capital outlay Total Borough clerk 127,530 115,344 Variance- 164,770 35,870 33,228 favorable 1999 Budget Actual (unfavorable) Actual $ 21,600 $ 21,600 $ - $ 20,000 3,320 3,322 (2) 3,280 61,600 52,475 9,125 49,659 60,000 63,000 (3,000) 63,478 146,520 140,397 6,123 136,417 127,530 115,344 12,186 164,770 35,870 33,228 2,642 38,962 28,770 38,475 (9,705) 49,886 - - - 975 192,170 187,047 5,123 254,593 139,320 123,994 15,326 156,426 42,950 32,392 10,558 39,679 84,200 70,187 14,013 89,067 800 - 800 2,548 267,270 226,573 40,697 287,720 P, n E i a 1 Borough attorney: Legal fees 132,000 129,506 2,494 82,186 Support goods and services 70,000 68,362 1,638 73,614 Total Borough attorney 202,000 197,868 4,132 155,800 Finance department: Personnel services 347,230 344,724 2,506 343,487 Fringe benefits 101,030 95,846 5,184 99,463 Support goods and services 63,080 59,937 3,143 228,144 Capital outlay 2,500 - 2,500 5,286 Allocated to projects (126.300) (130.855) 4,555 (114,010) Total finance department 387,540 369,652 17,888 562,370 (continued) 46 KODIAK ISLAND BOROUGH EXHIBIT A -3, continued GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 200 (with comparative totals for 1999) EQ 1 1 1 Community development department: Personnel services 266,320 239,831 Variance- 278,940 Fringe benefits 87,480 65,392 favorable 1999 Contracted services Budget Actual (unfavorable) Actual Assessing department: 45,260 40,219 5,041 77,335 Personnel services $ 211,190 $ 212,864 $ (1,674) $ 212,735 Fringe benefits 62,820 59,824 2,996 57,408 Support goods and services 29,910 26,497 3,413 69,318 Capital outlay 2,020 2,355 (335) 1,325 Allocated to projects (22,220) (22,220) - (21,890) Total assessing department 283,720 279,320 4,400 318,896 Community development department: Personnel services 266,320 239,831 26,489 278,940 Fringe benefits 87,480 65,392 22,088 77,366 Contracted services - (468) 468 - Support goods and services 45,260 40,219 5,041 77,335 Capital outlay - - - 677 Allocated to projects (40.000) (40,268) 268 (17,050) Total community development department 359,060 304,706 54,354 417,268 Building official: Contracted services 140,000 115,770 24,230 88,270 Support goods and services 4,600 4,702 (102) 4,003 Total building official 144,600 120,472 24,128 92,273 Economic development: General services: Contracted services 16.000 4,755 11,245 25,025 Contributions: City of Kodiak - - - 14,000 Alaska Ocean Seas & Fisheries - - _ 200 Kodiak Chamber of Commerce 33.000 33,000 - 33,000 Total economic development 49,000 37,755 11,245 72,225 (continued) 47 KODIAK ISLAND BOROUGH EXHIBIT A -3, continued GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 2000 Variance- favorable Budget Actual (unfavorable) General and administration: r C 1999 Actual Personnel services $ - $ 1,936 $ (1,936) $ 38,436 Fringe benefits 40,257 13,881 26,376 14,709 Professional fees 115,000 78,462 36,538 94,436 Support goods and services 86,330 83,595 2,735 77,045 Total general and administration 241,587 177,874 63,713 224,626 Emergency preparedness: Support goods and services 5,500 2,791 2,709 2,384 Total emergency preparedness 5,500 2,791 2,709 2,384 School District support: Data processing 111,490 121,409 (9,919) 264,520 Mental health services 381,345 381,345 - 399,600 Audit expense 37,000 49,039 (12,039) 28,666 Support goods and services 47,000 44,350 2,650 39,194 Total School District support 576,835 596,143 (19,308) 731,980 Health and sanitation department: Emergency Medical Services 32,450 15 32,435 30,362 Animal Control 52,000 52,000 - 52,000 Council on Alcoholism 29,724 29,802 (78) 42,388 State Health Services Villages 8,540 9,342 (802) 12,927 State Health Services KANA 2,840 1,420 1,420 4,310 Women's Resource Crisis Center 28,123 28,164 (41) 40,925 American Red Cross 1,750 1,750 - 3,500 Kodiak Baptist Mission 18,640 18,752 (112) 32,859 Small World (Day Care) - - - 13,000 Special Olympics 7,000 7,000 - 7,000 Health Center Support 4,500 3,364 1,136 4,209 Senior Citizen Support 25,000 25,000 - 25.E Kodiak Respite Care 5,000 5,000 - 5,200 The Salvation Army 7,500 7,500 - 8,000 Brother Francis Shelter 25,000 25,000 - 25.E Ambulance Service 65,000 65,000 - 95,000 Total health and sanitation department 313,067 279,109 33,958 401,680 (continued) 48 !J 1 1 1 [l A 1 i f KODIAK ISLAND BOROUGH EXHIBIT A -3, continued GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) Management information systems: Personnel services 236,450 256,726 Variance- Fringe benefits 72,215 70,189 2,026 - favorable 1999 128,854 Budget Actual (unfavorable) Actual Education, culture and recreation: Allocated to projects (167,040) (167,025) (15) - KMXT Public Radio $ 7,500 $ 7,500 $ - $ 15,000 Historical Society 5,000 5,000 - 10,000 Summer Basketball 5,000 5,000 - 5,000 Kodiak Island Sportsman Association - - - 2,000 Kodiak Art Council 15,000 15,000 - 16,000 Village Libraries 18,000 16,500 1,500 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 - 60,000 Kodiak Little League 5,000 5,000 - 5,000 Santa to the Villages 2,300 2,300 - 2,300 Karluk IRA Council 13,400 8,200 5,200 20,000 KANA Youth Olympics 2,000 2,000 - 2,000 KANA Family Center 12,000 12,000 - 16,000 Kodiak Youth Services Network 5,000 5,000 - 10,000 Kodiak Football League 3,000 3,000 - - Girl Scouts 1,000 1,000 - 1,000 Total education, culture and recreation 168,200 161,500 6,700 196,300 Management information systems: Personnel services 236,450 256,726 (20,276) - Fringe benefits 72,215 70,189 2,026 - Support goods and services 151,711 128,854 22,857 - Capital outlay 50,500 40,522 9,978 - Allocated to projects (167,040) (167,025) (15) - Total management information systems 343,836 329,266 14,570 - Total expenditures 3,680,905 3,410,473 270,432 3,854,532 (continued) 49 KODIAK ISLAND BOROUGH EXHIBIT A -3, continued GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 2000 50 Variance- favorable 1999 Budget Actual (unfavorable) Actual OTHER FINANCING SOURCES (USES): Operating transfers in from debt service fund $ - $ 21.746 $ 21,746 $ 32,632 Operating transfers out to other funds: Special revenue funds: Building and Grounds (27,770) (27,770) - (119,770) Debt service funds: Schools (777,030) (777,030) - (1,016,770) Other (9,000) (33,905) (24,905) (7,500) Capital projects funds: Various Borough projects (42,000) (22,000) 20,000 (303,480) Operating transfers to component unit: Kodiak Island Borough School District (5,556,310) (5,556,310) - (5,655,840) Net other financing uses (6,412,110) (6,395,269) 16,841 (7,070,728) Total expenditures and other financing uses $ 10,093,015 $ 9,805,742 $ 287,273 $ 10.925.260 50 1 1 1 C 1 I SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues from specific sources which by law are restricted to finance particular func- tions and activities. 1 1 SPECIAL REVENUE FUNDS The Fire Protection Area No. l 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. l 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 Program Fund accounts for a State of Alaska grant to finance day care for children of low- income employed families. The Welfare to Work Program Fund accounts for pass through grant monies for local agencies to help individuals become part of the work force. J SPECIAL REVENUE FUNDS (continued) 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. t 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 1 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. if The Local Emergency Planning Committee Fund accounts for State of Alaska grants provided for regional emergency preparation, response, and mitigation planning. 1 1 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET NNE 30, 2000 (with comparative totals for 1999) Fire and Road Servic Areas ASS Equity in central treasury Temporary investments Receivables: State of Alaska Federal Government 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 Fire Road Fire Womens Kodiak Monashka Bay Protection Bay Fire Airport Road Service Area No. 1 Department Fire District Area $ 200,154 $ 184,409 $ 18,801 $ 45,662 6,914 3,138 2,195 241 434,162 - 11,410 - 3,354 4,810 - - $ 644.584 $ 192.357 $ 32,406 $ 45,903 LIABILITIES AND FUND BALANCES (ACCUMULATED DEFICITS) LIABILITIES: Accounts payable $ 5,088 $ 4,166 $ - $ 620 Employee benefits accrued and withheld 119 - - - Customer deposits - 125 - - Deferred revenues - _ Due to other funds - - - - Totalliabilities 5,207 4,291 - 620 FUND BALANCES (ACCUMULATED DEFICITS): Reserved: Subsequent year expenditures - - - - Long -term interfund advances - - - - Unreserved: Undesignated 639.377 188,066 32,406 45,283 Total fund balances (accumulated deficits) 639,377 188,066 32,406 45,283 TOTAL $ 644.584 $ 192,357 $ 32,406 $ 45,903 52 EXHIBIT B -1 $ 190,713 $ 167,458 $ 2,802 $ 3,696 $ - $ - $ 2,046 $ - 17,494 71,986 21,203 - - 16,027 2,268 3,414 89 1 61,284 - - - - - - - (61,284) - - - 20,418 - $ 192,981 $ 170,872 $ 2,891 $ 3,697 $ - $ 17,494 $ 94,450 $ 37,230 $ 3,389 $ 3,334 6,723 - $ 637 $ - $ 150 Federal and $ 35,528 $ 5,332 State Grant Programs 17,581 Road (continued) 31,898 - 637 - 323,299 17,641 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 $ 190,713 $ 167,458 $ 2,802 $ 3,696 $ - $ - $ 2,046 $ - 17,494 71,986 21,203 - - 16,027 2,268 3,414 89 1 61,284 - - - - - - - (61,284) - - - 20,418 - $ 192,981 $ 170,872 $ 2,891 $ 3,697 $ - $ 17,494 $ 94,450 $ 37,230 $ 3,389 $ 3,334 6,723 - $ 637 $ - $ 150 $ 60 $ 35,528 $ 5,332 - - - 323,149 17,581 45,255 31,898 - 637 - 323,299 17,641 80,783 37,230 28,150 - - - - - - 158,108 170,872 2,254 3,697 (323,299) (147) 13,667 - 186,258 170,872 2,254 3,697 (323,299) (147) 13,667 - $ 192,981 $ 170,872 $ 2,891 $ 3.697 $ - $ 17,494 $ 94,450 $ 37,230 (continued) 53 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET (continued) JUNE 30, 2000 (with comparative totals for 1999) ASSETS Equity in central treasury Temporary investments Receivables: State of Alaska Federal Government 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 Woodland Buildings Acres Street Kodiak and Light Service Arts Land Sales Grounds Area Council $ 2,230 $ - $ 42,333 $ 44,776 58,364 - - - 250 30,235 6 4,248 200,012 - - - 84,151 - - - $ 345,007 $ 30.235 $ 42.339 $ 49,024 LIABILITIES AND FUND BALANCES (ACCUMULATED DEFICITS) LIABILITIES: Accounts payable $ - $ 11,378 $ 433 $ - Employee benefits accrued and withheld (1) - - - Customer deposits - - - - Deferred revenues 173,052 - - - Due to other funds 517 325.184 - 48,878 Total liabilities 173,568 336,562 433 48,878 FUND BALANCES (ACCUMULATED DEFICITS): Reserved: Subsequent year expenditures - - 7,000 - Long -term interfund advances - - - - Unreserved: Undesignated 171,439 (306,327) 34,906 146 Total fund balances (accumulated deficits) 171,439 (306.327) 41,906 146 TOTAL $ 345,007 $ 30.235 $ 42,339 $ 49,024 54 EXHIBIT B -1, continued 525 - 2,837 525 2,837 $ 16,405 $ 83,186 $ 267,929 Kodiak Totals - 650 600 Tourism Transit 11,410 810.043 1,017,612 Facilities Development Authority L.E.P.0 2000 1999 $ 171,567 $ 11,927 $ - $ - $ 1,088.574 $ 200 9,115.342 - - - 9,115,342 5,143,146 - - - 27,815 138,498 174,188 - - - - 16,027 - - - - - 58,364 71,795 72,582 - - - 72,582 31,155 - 8,882 2,837 - 126,002 132,019 - - - - (61,284) (85,842) 346,588 - - - 1,012,590 1,469,382 - - - - 8,164 - 7,595,000 - - - 7,595,000. 7,805,000 - - - - 84,151 69,188 $ 17,301.079 $ 20.809 $ 2.837 $ 27,815 $ 19.254,010 $ 14,810.231 525 - 2,837 525 2,837 $ 16,405 $ 83,186 $ 267,929 - 118 414 - 650 600 - 173,052 142,338 11,410 810.043 1,017,612 27,815 1,067,049 1,428,893 - - - 35.150 7,595,000 - - - 7,595,000 7,805,000 9,706.079 20.284 - - 10,556.811 5,576,338 17,301.079 20,284 - - 18.186.961 13,381,338 $ 17,301,079 $ 20,809 $ 2.837 $ 27.815 $ 19.254.010 $ 14,810,231 55 1 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES (ACCUMULATED DEFICITS) YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) Fire and Road Service Areas REVENUES: Property taxes State sources Federal sources Land sale proceeds Licenses, permits, fees and other local revenues Investments and property Other Total revenues EXPENDITURES: Community development department General and administration Health and sanitation department Capital outlay: Services district maintenance Total expenditures Excess (deficiency) of revenues 4,859 8,267 - - - 20,000 36,261 9,979 1,129 2,749 11,952 10,537 307,151 68,559 29,612 25,491 71,331 112,565 142,682 31,975 15,218 - - u F 1 - - - 23,837 105,246 79,394 142,682 31,975 15,218 23,837 105,246 79,394 r over (under) expenditures 164,469 36,584 14,394 1,654 (33,915) 33,171 OTHER FINANCING SOURCES (USES): Operating transfers in from other funds - 600 _ _ _ _ Operating transfers out to other funds (1,616) - - _ _ (600) Net other financing sources (uses) (1,616) 600 _ _ _ (600) 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 C 162,853 37,184 14,394 1,654 (33,915) 32,571 1 476,524 150,882 18,012 43,629 220,173 138,301 $ 639,377 $ 188,066 $ 32,406 $ 45.283 $ 186,258 170,872 56 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. 1 Area $ 252,645 $ 49,897 $ 28,483 $ 21,499 $ 54,118 $ 76,153 12,675 416 - 1,243 5,024 5,875 711 - - - 237 - 4,859 8,267 - - - 20,000 36,261 9,979 1,129 2,749 11,952 10,537 307,151 68,559 29,612 25,491 71,331 112,565 142,682 31,975 15,218 - - u F 1 - - - 23,837 105,246 79,394 142,682 31,975 15,218 23,837 105,246 79,394 r over (under) expenditures 164,469 36,584 14,394 1,654 (33,915) 33,171 OTHER FINANCING SOURCES (USES): Operating transfers in from other funds - 600 _ _ _ _ Operating transfers out to other funds (1,616) - - _ _ (600) Net other financing sources (uses) (1,616) 600 _ _ _ (600) 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 C 162,853 37,184 14,394 1,654 (33,915) 32,571 1 476,524 150,882 18,012 43,629 220,173 138,301 $ 639,377 $ 188,066 $ 32,406 $ 45.283 $ 186,258 170,872 56 EXHIBIT B -2 25,670 - - - - - 161,783 167,405 662,282 5,098 (777) - 479,806 - - - - 5.008 - - - - 5,008 - (777) 25.670 479.806 161.783 167.405 662.282 5.098 718 200 3,219 - 4,031 - 209,611 (348,265) (2,641) 131,681 - 131,681 - 718 200 3,219 - 4,031 - 209.611 (216,584) (2,641) 1,536 3,497 (326,518) (147) 9.636 - (38.172) (89.743) 44,547 $ 2,254 $ 3,697 $(323.299) $ (147) $ 13.667 $ - $171.439 $(306.327) $ 41,906 s ������ = . m® � (continued) 57 Federal and State Grant Programs Road (continued) Welfare Woodland Bay View Service Mental Child Care 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 $ 5,058 $ - $ - $ - $ - $ - $ - $ - $ - 447 - - 25,670 479,806 145,755 - - 54 _ _ - - 16,028 - - - _ - 319,461 - - - (150) - - - 57,555 - - 221 200 - - - - 314,017 2,403 - - 2,592 - 4,031 - - - - 5,726 200 2,442 25,670 483,837 161,783 377,016 314,017 2,457 25,670 - - - - - 161,783 167,405 662,282 5,098 (777) - 479,806 - - - - 5.008 - - - - 5,008 - (777) 25.670 479.806 161.783 167.405 662.282 5.098 718 200 3,219 - 4,031 - 209,611 (348,265) (2,641) 131,681 - 131,681 - 718 200 3,219 - 4,031 - 209.611 (216,584) (2,641) 1,536 3,497 (326,518) (147) 9.636 - (38.172) (89.743) 44,547 $ 2,254 $ 3,697 $(323.299) $ (147) $ 13.667 $ - $171.439 $(306.327) $ 41,906 s ������ = . m® � (continued) 57 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS EXHIBIT B -2, continued COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS j AND CHANGES IN FUND BALANCES (ACCUMULATED DEFICITS) YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) Kodiak Kodiak Totals Arts Tourism Transit Council Facilities Development Authority L.E.P.C. 2000 1999 REVENUES: Property taxes State sources Federal sources Land sale proceeds Licenses, permits, fees and other local revenues Investments and property Other Total revenues EXPENDITURES: Community development department General and administration Health and sanitation department Capital outlay: Services district maintenance Total expenditures Excess (deficiency) of revenues over (under) expenditures $ _ $ _ $ - $ - $ - $ 487,853 $ 483,809 - 255,662 30,600 963,227 737,541 - 15,315 - 32,291 981 4,000,000 - - - 4,319,461 4,158,858 53,518 - 37,889 58,104 - 240,042 313,790 f - 376,210 - - - 765,658 1,039,304 - 6,623 - 53,518 4,376,210 37,889 329,081 30,600 6,815,155 6,734,283 - - 37,924 - - 63,594 74,686 53,401 - - 83,604 30,601 1,354,049 1,453,131 - - - - - 479,029 747,026 - - - - - 213.485 303.797 2,578,640 53,401 - 37,924 83,604 30,601 2.110.157 117 4,376,210 (35) 245,477 (1) 4,704,998 4,155,643 1 OTHER FINANCING SOURCES (USES): Operating transfers in from other funds - 549,763 - - - 682,044 307,708 Operating transfers out to other funds - (579,203) - - - (581,419) (476,990) Net other financing sources (uses) - (29,440) - - - 100,625 (169,282) 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 117 4,346,770 (35) 245,477 (1) 4,805,623 3,986,361 29 12,954,309 20,319 (245,477) 1 13,381,338 9,394,977 !4 $ 146 $17,301,079 $ 20,284 $ - $ - $18.186.961 $13,381,338 x. 58 KODIAK ISLAND BOROUGH EXHIBIT B -3 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - FIRE PROTECTION AREA NO. 1 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) KI REVENUES: Property taxes State sources - Shared revenue Federal sources - Payment in lieu of taxes Licenses, permits, fees and other local revenues 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 of revenues over expenditures OTHER FINANCING USES: Operating transfers out to other funds: Capital Projects - Borough Projects Debt Service Funds Total other financing uses Excess of revenues over expenditures and other financing uses FUND BALANCES, at beginning of year FUND BALANCES, at end of year Variance - favorable 1999 Budget Actual (unfavorable) Actual $ 233,000 $ 252,645 $ 19,645 $ 233,217 14,000 12,675 (1,325) 16,221 2,000 711 (1,289) 654 15,000 4,859 (10,141) 37,120 - 36,261 36,261 21,457 264,000 307,151 43,151 308,669 52,420 50,432 1,988 50,301 15,000 4,840 10,160 9,387 15,660 13,218 2,442 15,749 19,000 1,680 17,320 7,484 111,920 61,793 50,127 64,425 25,000 10,719 14,281 4,137 25,000 - 25,000 - 264,000 142,682 121,318 151,483 - 164,469 164,469 157,186 (990) (1,616) (1,616) - (1,616) (1,616) (990) $ - 162,853 $ 162,853 156,196 476,524 320,328 s $ 639,377 $ 476,524 i 59 1 r KODIAK ISLAND BOROUGH EXHIBIT B-4 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - WOMENS BAY FIRE DEPARTMENT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) MU 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 OTHER FINANCING SOURCES: Operating transfers in from other funds: Special Revenue Funds Excess of revenues and other financing sources over expenditures FUND BALANCES, at beginning of year FUND BALANCES, at end of year Variance - favorable 1999 Budget Actual (unfavorable) Actual $ 48,470 $ 49,897 $ 1,427 $ 48,491 425 416 (9) 3,974 9,000 8,267 (733) 9,017 3,000 9,979 6,979 6,818 60,895 68,559 7,664 68,300 1,700 39 1,661 689 3,000 - 3,000 - 46,245 25,449 20,796 34,818 10,550 6,487 4,063 3,799 61,495 31,975 29,520 39,306 (600) 36,584 37,184 28,994 $ - 37,184 $ 37,184 28,994 150,882 121,888 $ 188,066 $ 150,882 .1 I i KODIAK ISLAND BOROUGH EXHIBIT B -5 Total revenues EXPENDITURES: General and administration: Contracted services Support goods and services Total expenditures Excess of revenues over expenditures 30,640 29,612 (1,028) 29,764 30,540 15,139 15,401 14,133 100 79 21 101 30,640 15,218 15,422 14,234 $ - 14,394 $ 14,394 15,530 FUND BALANCES, at beginning of year FUND BALANCES, at end of year 18,012 $ 32,406 2,482 $ 18,012 61 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - KODIAK AIRPORT FIRE DISTRICT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 2000 Variance- favorable 1999 Budget Actual (unfavorable) Actual REVENUES: Property taxes $ 30,350 $ 28,483 $ (1,867) $ 29,178 Investments and property 290 1,129 839 586 Total revenues EXPENDITURES: General and administration: Contracted services Support goods and services Total expenditures Excess of revenues over expenditures 30,640 29,612 (1,028) 29,764 30,540 15,139 15,401 14,133 100 79 21 101 30,640 15,218 15,422 14,234 $ - 14,394 $ 14,394 15,530 FUND BALANCES, at beginning of year FUND BALANCES, at end of year 18,012 $ 32,406 2,482 $ 18,012 61 KODIAK ISLAND BOROUGH EXHIBIT B -6 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - MONASHKA BAY ROAD SERVICE AREA STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) !121 62 Variance- favorable 1999 Budget Actual (unfavorable) Actual REVENUES: Property taxes $ 19,690 $ 21,499 $ 1,809 $ 19,546 State sources - Shared revenue 1,410 1,243 (167) 1,855 Investments and property 2,300 2,749 449 2,769 Total revenues 23,400 25,491 2,091 24,170 EXPENDITURES: Capital outlay: Service district maintenance: Personnel services 500 - 500 - Snow removal/sanding 12,000 12,777 (777) 15,073 Road grading/ditching 8,500 10,258 (1,758) 1,890 Repairs and maintenance 1,500 730 770 40,722 Support goods and services 900 72 828 101 Total expenditures 23,400 23,837 (437) 57,786 Excess (deficiency) of revenues over (under) expenditures $ - 1,654 $ 1,654 (33,616) FUND BALANCES, at beginning of year 43,629 77,245 FUND BALANCES, at end of year $ 45,283 $ 43,629 62 1 KODIAK ISLAND BOROUGH EXHIBIT B -7 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - SERVICE DISTRICT NO. 1 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 2000 Variance- favorable 1999 Budget Actual (unfavorable) Actual REVENUES: Property taxes $ 52,000 $ 54,118 $ 2,118 $ 74,760 State sources - Shared revenue 8,000 5,024 (2,976) 8,889 Federal sources - Payment in lieu of taxes 2,500 237 (2,263) 327 Investments and property 10,000 11,952 1,952 12,044 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 Deficiency of revenues under expenditures 72,500 71,331 (1,169) 96,020 4,150 3,432 718 3,536 50,000 22,532 27,468 32,352 65,000 46,618 18,382 68,154 30,000 30,413 (413) 36,727 6,500 2,251 4,249 1,624 155,650 105,246 50,404 142,393 $ (83,150) (33,915) $ 49.235 (46,373) FUND BALANCES, at beginning of year FUND BALANCES, at end of year 220,173 266,546 $ 186,258 $ 220,173 63 1 1 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 BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 1 2000 1 Variance- favorable 1999 Budget Actual (unfavorable) Actual REVENUES: Property taxes $ 73,900 $ 76,153 $ 2,253 $ 73,863 State sources - Shared revenue 8,520 5,875 (2,645) 8,520 Licenses, permits, fees and other local revenues 20,000 20,000 - 20,000 Investments and property 5,280 10,537 5,257 8,034 Total revenues 107,700 112,565 4,865 110,417 EXPENDITURES: Capital outlay: Service district maintenance: Personnel services 3,430 - 3,430 - Snow removal/sanding 49,400 50,647 (1,247) 42,714 Road grading/ditching 23,170 10,193 12,977 43,563 Repairs and maintenance 30,000 18,200 11,800 9,165 Service district maintenance 1,100 354 746 (221) Total expenditures 107,100 79,394 27,706 95,221 OTHER FINANCING USES: Operating transfers out to other funds: Womens Bay Fire Department (600) (600) - - Excess of revenues over expenditures and other financing uses $ - 32,571 $ 32,571 15,196 FUND BALANCES, at beginning of year 138,301 123,105 FUND BALANCES, at end of year $ 170,872 $ 138,301 1 64 1 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 BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) i M M Variance- favorable 1999 Budget Actual (unfavorable) Actual REVENUES: Property taxes $ 4,600 $ 5,058 $ 458 $ 4,754 State sources - Shared revenue 670 447 (223) 675 Investments and property 200 221 21 245 Total revenues 5,470 5,726 256 5,674 EXPENDITURES: Capital outlay: Service district maintenance: Snow removal/sanding 2,500 3,921 (1,421) 7,196 Road grading/ditching 1,970 1,072 898 1,040 Repairs and maintenance 1,000 - 1,000 125 Support goods and services - 15 (15) 36 Total expenditures 5,470 5,008 462 8,397 Excess (deficiency) of revenues over (under) expenditures $ - 718 $ 718 (2,723) FUND BALANCES, at beginning of year 1,536 4,259 FUND BALANCES, at end of year $ 2,254 $ 1,536 M KODIAK ISLAND BOROUGH EXHIBIT B -10 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - SERVICE AREA NO.2 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, - (with comparative totals for 1999) 2000 Variance - favorable 1999 Budget Actual (unfavorable) Actual REVENUES: Investments and property $ 200 $ 200 $ - $ 159 EXPENDITURES: Capital outlay: Service district maintenance Excess of revenues over expenditures FUND BALANCES, at beginning of year 200 - 200 - $ - 200 $ 200 159 FUND BALANCES, at end of year $ 3,697 66 3,338 $ 3,497 KODIAK ISLAND BOROUGH EXHIBIT B -11 SPECIAL REVENUE FUNDS MENTAL HEALTH CENTER STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND DEFICITS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 2000 Variance- favorable 1999 Budget Actual (unfavorable) Actual REVENUES: State sources: Health, Social and Community Services Program $ - $ - $ - $ 2,677 Licenses, permits, fees and other local revenues: Net individual and organization user fees - (150) (150) - Other - 2,592 2,592 - Total revenues EXPENDITURES: Health and sanitation department: Mental health program: Personnel services Other Total expenditures Excess (deficiency) of revenues over (under) expenditures FUND DEFICITS, at beginning of year FUND DEFICITS, at end of year 2,442 2,442 2,677 - - - 161 - (777) 777 249,837 - (777) 777 249,998 $ - 3,219 $ 3,219 (247,321) (326,518) (79,197) $ (323,299) $ (326,518) 67 KODIAK ISLAND BOROUGH EXHIBIT B -12 SPECIAL REVENUE FUNDS COASTAL MANAGEMENT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND DEFICITS BUDGET AND ACTUAL YEAR ENDED JUNE 3 0 , 2000 (with comparative totals for 1999) M Variance- favorable 1999 Budget Actual (unfavorable) Actual REVENUES: State sources - Grants $ 25,670 $ 25,670 $ - $ 36,090 Total revenues 25,670 25,670 - 36,090 EXPENDITURES: Community development department: CMG Special - - - 10,000 Planning and zoning 25,670 25,670 - 26,090 Total expenditures 25,670 25,670 - 36,090 Excess of revenues over expenditures $ - - $ FUND DEFICITS, at beginning of year (147) (147) FUND DEFICITS, at end of year $ (147) $ (147) 68 KODIAK ISLAND BOROUGH EXHIBIT B -13 SPECIAL REVENUE FUNDS CHILD CARE ASSISTANCE PROGRAM STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 2000 Variance - favorable 1999 Budget Actual (unfavorable) Actual REVENUES: State sources - Grants $ 540,048 $ 479,806 $ (60,242) $ 497,522 Other - 4,031 4,031 - Total revenues 540,048 483,837 (56,211) 497,522 EXPENDITURES: Health and sanitation department: Day care payments Total expenditures Excess of revenues over expenditures FUND BALANCES, at beginning of year FUND BALANCES, at end of year 540,048 479,806 60,242 497,028 540,048 479,806 60,242 497,028 $ - 4,031 $ 4,031 494 9,636 $ 13,667 M . 9,142 $ 9,636 KODIAK ISLAND BOROUGH EXHIBIT B -14 SPECIAL REVENUE FUNDS WELFARE TO WORK PROGRAM STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) K12 REVENUES: State sources - Grants Federal sources - Grants Total revenues EXPENDITURES: General and administration: Personnel services Professional services Support goods and services Capital outlay Total expenditures Excess of revenues over expenditures FUND BALANCES, at beginning of year FUND BALANCES, at end of year 25,095 16,997 Variance - 5,720 308,015 141,674 favorable 1999 Budget Actual (unfavorable) Actual $ 215,500 $ 145,755 $ (69,745) $ 93,730 123,810 16,028 (107,782) - 339,310 161,783 (177,527) 93,730 25,095 16,997 8,098 5,720 308,015 141,674 166,341 87,607 5,000 3,112 1,888 403 1,200 - 1,200 - 339,310 161,783 177,527 93,730 70 � i I 1 I KODIAK ISLAND BOROUGH EXHIBIT B -15 SPECIAL REVENUE FUNDS LAND SALES STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE (DEFICIT) BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 1 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 Fund Other Excess of revenues and other financing sources over expenditures FUND DEFICITS, at beginning of year FUND BALANCE (DEFICIT), at end of year Variance- favorable 1999 Budget Actual (unfavorable) Actual $ 154,030 $ 319,461 $ 165,431 $ 158,858 50,600 30,000 (20,600) 57,524 1,000 27,555 26,555 3,530 205,630 377,016 171,386 219,912 87,080 87,599 (519) 159,215 72,660 13,295 59,365 1,566 45,890 27,519 18,371 26,870 - 38,992 (38.992) 4,012 205,630 167,405 38.225 191,663 - 209,611 209,611 28,249 7,220 $ - 209,611 $ 209,611 35,469 (38,172) (73,641) $ 171,439 $ (38,172) 71 KODIAK ISLAND BOROUGH EXHIBIT B -16 SPECIAL REVENUE FUNDS BUILDINGS AND GROUNDS STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND DEFICITS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 2000 Variance- favorable 1999 Budget Actual (unfavorable) Actual REVENUES: Investments and property: Rental $ 308,810 $ 314,017 $ 5,207 $ 303,634 Total revenues EXPENDITURES: General and administration: Engineering facilities School buildings Borough buildings 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 (Deficiency) excess of revenues and other financing sources (under) over expenditures FUND DEFICITS, at beginning of year FUND DEFICITS, at end of year 308,810 314,017 5,207 303,634 4,220 183,337 (179,117) - 176,000 178,315 (2,315) 105,056 286,710 268,435 18,275 361,213 - 3,008 (3,008) 6,729 41,830 29,187 12,643 49,298 508,760 662,282 (153,522) 522,296 (199,950) (348,265) 148,315 (218,662) 27,770 27,770 - 119,770 100,000 100,000 - 180,000 3,911 3,911 718 127,770 131,681 3,911 300,488 $ (72,180) (216,584) $ 152,2 81,826 (89,743) (171,569) $ (306,327) $ (89,743) 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 BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 01 REVENUES: State sources - Shared revenue Investments and property Total revenues EXPENDITURES: General and administration: Electricity Capital outlay Total expenditures Deficiency of revenues under expenditures FUND BALANCES, at beginning of year FUND BALANCES, at end of year Variance - favorable 1999 Budget Actual (unfavorable) Actual $ 90 $ 54 $ (36) $ 89 2,000 2,403 403 2,145 2,090 2,457 367 2,234 7,470 5,098 2,372 5,066 3,000 - 3,000 - 10,470 5,098 5,372 5,066 $ (8,380) (2,641) $ 5,739 (2,832) $ 41,906 $ 44,547 73 KODIAK ISLAND BOROUGH EXHIBIT B -18 I SPECIAL REVENUE FUNDS KODIAK ARTS COUNCIL STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) IMIZ REVENUES: Licenses, permits, fees and other local revenues: Reimbursement from Kodiak Arts Council Total revenues EXPENDITURES: General and administration: Personnel services Fringe benefits Support goods and services Total expenditures Excess of revenues over expenditures FUND BALANCE (DEFICIT), at beginning of year FUND BALANCES, at end of year Variance- favorable 1999 Budget Actual (unfavorable) Actual $ 69,380 $ 53,518 $ (15,862) $ 44,696 15,580 10,347 5,233 6,620 69,380 53,518 (15,862) 44,696 52,400 42,205 10,195 34,736 15,580 10,347 5,233 6,620 1,400 849 551 981 69,380 53,401 15,979 42,337 $ - 117 $ 117 2,359 29 $ 146 (2,330) $ 29 74 KODIAK ISLAND BOROUGH EXHIBIT B -19 SPECIAL REVENUE FUNDS FACILITIES STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 2000 Variance - favorable 1999 Budget Actual (unfavorable) Actual REVENUES: Land sale proceeds: Proceeds from the sale of Shuyak Island Investments and property Total revenues EXPENDITURES: General and administration Total expenditures Excess of revenues over expenses OTHER FINANCING SOURCES AND (USES): Operating transfers in (out) from (to) other funds: Capital Projects - Borough projects Buildings and grounds Enterprise - KFRC Debt Service Funds Net other financing uses Excess of revenues and other financing sources over expenditures and other financing uses FUND BALANCES, at beginning of year FUND BALANCES, at end of year $ 4,000,000 $ 4,000,000 $ - $ 4,000,000 727,921 376,209 (351,712) 681,413 4,727,921 4,376,209 (351,712) 4,681,413 4,148,720 4,148,720 579,201 - 4,148,720 4,148,720 - 4,376,209 3,797,008 4,681,413 (200,640) (200,640) - (296,000) (100,000) (100,000) - (180,000) 549,763 549,763 - (278,561) (278,562) (1) - (579,201) (29,439) 549,762 (476,000) $ - 4,346,770 $ 4,346,770 4,205,413 75 12,954,309 8,748,896 $17,301,079 $ 12,954,309 KODIAK ISLAND BOROUGH EXHIBIT B -20 SPECIAL REVENUE FUNDS TOURISM DEVELOPMENT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 2000 Variance - favorable 1999 Budget Actual (unfavorable) Actual REVENUES: Licenses, permits, fees and other local revenues Investments and property Total revenues EXPENDITURES: Community development department: Contracted services Contributions Support goods and services Total expenditures (Deficiency) excess of revenues (under) over expenditures $ 42,700 $ 37,889 $ (4,811) $ 39,609 200 - (200) - 42,900 37,889 (5,011) 39,609 - - - 10,000 42,900 37,900 5,000 28,600 - 24 (24) (4) 42,900 37,924 4,976 38,596 $ - (35) $ (35) 1,013 FUND BALANCES, at beginning of year 20,319 19,306 FUND BALANCES, at end of year $ 20,284 $ 20,319 76 KODIAK ISLAND BOROUGH EXHIBIT B -21 SPECIAL REVENUE FUNDS KODIAK TRANSIT AUTHORITY STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE (DEFICIT) BUDGET AND ACTUAL YE AR ENDED JUNE 30, 2000 (with comparative totals for 1999) 01 REVENUES: City of Kodiak subsidy State sources - Grants Federal sources - Grants Licenses, permits, fees and other local revenues Total revenues EXPENDITURES: General and administration: Transportation services Support goods and services Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures FUND DEFICITS, at beginning of year FUND BALANCE (DEFICIT), at end of year Variance - favorable 1999 Budget Actual (unfavorable) Actual $ 50,000 $ 42,837 $ (7,163) $ 56,400 100,000 255,662 155,662 35,095 - 15,315 15,315 - 50,000 15,267 (34,733) 45,894 200,000 329,081 129,081 137,389 333,000 83,342 249,658 321,474 17,000 262 16,738 12,879 - - - 26,460 350,000 83,604 266,396 360,813 $ (150,000) 245,477 $ 395,477 (223,424) (245,477) (22,053) $ - $ (245,477) 77 KODIAK ISLAND BOROUGH EXHIBIT B -22 SPECIAL REVENUE FUNDS L.E.P.C. STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 2000 Variance - favorable 1999 Budget Actual (unfavorable) Actual REVENUES: State sources: L.E.P.C.grant Total revenues EXPENDITURES: General and administration: Personnel services Contracted services Support goods and services Total expenditures (Deficiency) excess of revenues (under) over expenditures FUND BALANCES, at beginning of year FUND BALANCES, at end of year $ 30,600 $ 30,600 $ - $ 32,204 30,600 30,600 - 32,204 - 2,178 (2,178) 1,049 30,600 25,942 4,658 29,050 - 2,481 (2,481) 2,104 30,600 30,601 (1) 32,203 $ - (1) $ (1) 1 $ 1 78 1 1 1 n DEBT SERVICE FUNDS 1 1, n 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. DEBT SERVICE FUNDS The Debt Service — Education and Health Fund was established to finance and account for the payment of interest and principal on all general obligation debts, serial and term, other than that payable exclusively from special assessments and revenue debt issued for and serviced by a government enterprise fund. The Debt Service — Other Fund accounts for the long -term portion of the accrued vacation of Kodiak Island Borough employees. KODIAK ISLAND BOROUGH EXHIBIT C -1 DEBT SERVICE FUNDS COMBINING BALANCE SHEET JUNE 30, 2000 (with comparative totals for 1999) Education and Totals Health Other 2000 1999 ASSETS Equity in central treasury $ 2,880 $ 132,006 $ 134,886 $ 244 Temporary investments 694,611 - 694,611 - Accrued interest receivable 17,318 - 17,318 - Due from State of Alaska - - - 16,506 Due from other funds - - - 455,967 TOTAL $ 714,809 $ 132,006 $ 846,815 $ 472,717 LIABILITIES AND FUND BALANCES LIABHITIES: Accounts payable $ - $ - $ - $ 10,417 Due to other funds 442,158 - 442,158 - Total liabilities 442,158 - 442,158 10,417 FUND BALANCES: Reserved for subsequent year expenditures - - - 221,230 Unreserved 272,651 132,006 404,657 241,070 Total fund balances 272,651 132,006 404,657 462,300 TOTAL $ 714,809 $ 132,006 $ 846,815 $ 472,717 79 KODIAK ISLAND BOROUGH EXHIBIT C -2 DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) REVENUES: Investments and property: Interest income Other income Total revenues EXPENDITURES: Debt service: Principal Interest Fiscal agent fees Current: General and administration 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 Net other financing sources Education and Totals Health Other 2000 1999 $ 23,700 $ - $ 23,700 $ - - - - 1,834 23,700 - 23.700 1,834 1,905,834 - 1,905,834 1,915,833 855,916 - 855,916 852,040 2,247 - 2,247 1,612 4,200 - 4,200 - 2,768,197 - 2,768,197 2,769,485 (2,744,497) - (2,744,497) (2.767,651) - 9,740,000 - - 24,236 - - - (22,681) - - - (9,564,676) - - - (17,356) - - - (65,266) - - - (68,188) - - - (24,237) - - - (1,832) 1,621,398 - 1,621,398 1,650,598 1,055,591 35,522 1,091,113 1,025,260 - (25,65 (25.657) (40,570) 2,676,989 9,865 2.686.854 2,635,288 (Deficiency) excess of revenues and financing sources (under) over expenditures and financing uses (67,508) 9,865 (57,643) (132,363) FUND BALANCES. at beginning of year 340,159 122,141 462,300 594,663 FUND BALANCES, at end of year $ 272,651 $ 132,006 $ 404.657 $ 462,300 80 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS EDUCATION AND HEALTH STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) EXHIBIT C -3 2000 Variance - favorable 1999 Budget Actual (unfavorable) Actual REVENUES: Investments and property: Interest income $ 4,000 $ 23,700 $ 19,700 $ - Other income - - - 1,834 Total revenues 4,000 23,700 19,700 1,834 ' EXPENDITURES: Debt service: Principal 1,913,340 1,905,834 7,506 1,915,833 Interest 841,850 855,916 (14,066) 852,040 Fiscal agent fees 10,000 2,247 7,753 1,612 Current: t General and administration 34,400 4,200 30,200 - Total expenditures 2,799.590 2,768.197 31,393 2,769,485 Deficiency of revenues under expenditures (2,795.590) (2,744,497) 51,093 (2,767.651) OTHER FINANCING SOURCES (USES): Proceeds from issuance of bonds - - - 9,740,000 ' Accrued interest 24,236 Discount on bonds - - - (22,681) Purchase of restricted escrow - - (9,564,676) Underwriters discount (17,356) MBIA insurance - - - (65,266) Insurance (68,188) ' Accrued interest - - (24,237) Other - - - (1,832) Operating transfer in from component unit 1,496,690 1,621,398 124,708 1,650,598 ' Operating transfers in from other funds 1,055.591 1,055,591 - 1,024,270 Net other financing sources 2,552.281 2,676,989 124,708 2,674,868 Deficiency of revenues and other financing sources under expenditures and other financing uses $ (243,309) (67,508) $ 175,801 (92,783) ' FUND BALANCES, at beginning of year 340,159 432,942 FUND BALANCES, at end of year $ 272,651 $ 340,159 81 KODIAK ISLAND BOROUGH EXHIBIT C -4 DEBT SERVICE FUNDS OTHER STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 2000 Variance - favorable 1999 Budget Actual (unfavorable) Actual EXPENDITURES: Employee benefits $ 9,000 $ - $ 9,000 $ - OTHER FINANCING SOURCES (USES): Operating transfers in from other funds 9,000 35,522 26,522 990 Operating transfer out to other funds - (25,657) (25,657) (40,570) Net other financing sources (uses) 9,000 9,865 865 (39,580) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses $ FUND BALANCES, at beginning of year FUND BALANCES, at end of year 9,865 $ (8,135) 122,141 $ 132,006 (39,580) 161.721 $ 122,141 82 i 1 P , 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. 1 r_1 CAPITAL PROJECTS FUNDS The Various us Borough Projects Fund accounts for general government construction projects not accounted for in other funds. The State Capita! Grants Fund accounts for capital improvement projects relating to grants received from the State of Alaska. 1 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET JUNE 30, 2000 (with comparative totals for 1999) EXHIBIT D -1 Various State Borough Capital Totals Projects Grants 2000 1999 ASSETS Equity in central treasury Temporary investments Receivables: Accrued interest State of Alaska Due from other funds TOTAL LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable Retainages payable Deferred revenues Due to other funds Total liabilities FUND BALANCES: Fund Balances: Reserved for encumbrances Unreserved: Undesignated Total fund balances TOTAL $ 28,130 $ 52,317 $ 80,447 $ - 297,690 - 297,690 - 7,422 - 7,422 - - 22,909 22,909 306,427 323,149 323,149 300,822 $ 333,242 $ 398,375 $ 731,617 $ 607,249 $ 6,180 $ 6,480 $ 12,660 $ 35,631 3,706 1 3,707 113,826 - 25,354 25,354 - - 4,038 4,038 186,751 9,886 35,873 45.759 336,208 59,459 59,459 639,101 323,356 303,043 626.399 (368,060) 323,356 362,502 685,858 271,041 $ 333,242 $ 398.375 $ 731,617 $ 607,249 83 KODIAK ISLAND BOROUGH EXHIBIT D -2 CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) REVENUES: State sources Federal sources Licenses, permits, fees and other local revenues Investments and property Total revenues EXPENDITURES: Capital outlay: 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 Proceeds from issuance of long -term debt Net other financing sources Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses FUND BALANCES, at beginning of year Residual equity transfers in (out) FUND BALANCES, at end of year Various State Borough Capital Totals Projects Grants 2000 1999 $ - $ 13,498 $ 13,498 $ 787,028 39,366 39,366 296,494 (9,630) - (9,630) 10,800 10,157 (7,854) 2,303 135,433 527 45,010 45,537 1,229,755 5,487 - 5,487 963,893 99,551 45,077 144,628 4,166,635 105,038 45,077 150,115 5,130,528 (104,511) (67) (104,578) (3,900,773) 222,640 - 222,640 1,206,742 - - - (974,393) - - - 5,249 222,640 - 222,640 237,598 118,129 (67) 118,062 (3,663,175) 205,227 65,814 271,041 4,168,492 - 296,755 296,755 (234,276) $ 323,356 $ 362,502 $ 685,858 $ 271,041 84 I 1 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS FOR THE YEAR ENDED JUNE 30, 2000 Capital Projects - Health: APPROPRIATIONS 121 410 -647 New Ambulance Purchase Open 24,000 - Total NO. PROJECT Status Prior 2000 appropriations 24,000 - 24,000 Capital Projects - Education: Capital Projects - Utilities: 128 410 -653 Peterson Addition (Match) Open $ 1,269,450 $ - $ 1,269,450 130 410 -655 East Elementary Doorways Open 4,200 - 4,200 152 410 -668 High School Roof Design Open 72,800 - 72,800 00100 430 -696 School Repair KHS Roof Open - 181,100 181,100 00101 410 -697 School Repair KHS Roof Open - 200,640 200,640 - Total Capital Projects - education 85 1,346,450 381,740 1,728,190 Capital Projects - Health: 121 410 -647 New Ambulance Purchase Open 24,000 - 24,000 Total Capital Projects - health 24,000 - 24,000 Capital Projects - Utilities: 550 -750 Undesignated (City of Kodiak) Open - - - 00102 410 -698 Bayside Underground Electric Open - 22,000 22,000 , 182 410 -692 State Fair & Rodeo Water Open 25,000 - 25,000 Total Capital Projects - utilities 25,000 22,000 47,000 Capital Projects - Other: 410 -400 Undesignated Projects Open - - - 85 410 -471 Village Metals Removal Open 150,000 - 150,000 105 410 -482 Anton Larsen Dock Open 140,000 - 140 114 410 -642 State Airport Improvements Open 11,000 - 11,000 117 410 -645 Heliopad Striping Open 3,000 - 3,000 133 410 -658 Red Cross Building Repairs Open 12,000 - 12 142 430 -642 Clean Water Fund/Karluk Open 50,000 - 50,000 143 430 -643 EVOSTC Project Complete 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 Complete 31 - 31,055 159 410 -675 Borough Parks Open 26,500 - 26,500 164 430 -645 Waste Management Imp Open 1,857,100 (271,300) 1,585,800 86 EXHIBIT D -3 EXPENDITURES ENCUMBRANCES Total Unexpended Current Unencumbered Prior 2000 expenditures balance encumbrances balance $ 1,166,510 $ 2,940 $ 1,169,450 $ 100,000 $ - - _ - 4,200 - 5,877 757 6,634 66,166 - - - 181,100 - - - 200,640 - 1,172,387 3,697 1,176,084 552,106 $ 100,000 4,200 66,166 181,100 200,640 552,106 _ - - 24,000 - 24,000 _ - - 24,000 - 24,000 _ - - 22,000 - 22,000 8,239 3,568 11,807 13,193 - 13,193 8,239 3,568 11,807 35,193 - 35,193 57,509 - 57,509 (57,509) - (57,509) 111,415 9,124 120,539 29,461 - 29,461 137,790 1.790 139,580 420 - 420 C - 60 10,940 - 10,940 - - - 3,000 - 3,000 6,777 - 6,777 5,223 - 5,223 23,192 - 23,192 26,808 - 26,808 238,776 65 238,841 11,159 - 11,159 431,781 33,966 465,747 124,253 - 124,253 15,942 33,336 49,278 5,722 - 5,722 27,980 5,396 33,376 (2,321) - (2,321) 3,031 7,200 10,231 16,269 - 16,269 - 13,500 13,500 1,572,300 - 1,572,300 (continued) 87 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS FOR THE YEAR ENDED JUNE 30, 2000 APPROPRIATIONS PROJECT Total NO. PROJECT Status Prior 2000 appropriations Capital Projects - Other (continued) : 169 430 -649 Clean Water Karluk Open $ 350,000 $ - $ 350,000 170 410 -680 Bayside Fuel Tank Removal Open 5,000 - 5,000 172 410 -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 - 325,000 177 430 -687 Anton Larsen Boat Ramp Open 400,000 - 400,000 178 430 -688 Karluk Clinic Open 224,500 (224,500) - 183 410 -693 School Freezer Relocation Complete 40,000 - 40,000 184 430 -694 Oil Spill Response Equipment Open 400,000 - 400,000 00103 430 -691 Island Lake Fish Passage Open - 10,000 10,000 00104 430 -699 Tide Gate Open - 10,000 10,000 00106 410 -690 MIS Study Open - 20,000 20,000 Transfers Out - Fund 410 Complete - 16,252 16,252 Total Capital Projects - other 5,018,155 (439,548) 4,578,607 Total Capital Projects $ 6,413,605 $ (35,808) $ 6,377,797 88 1 EXHIBIT D -3, continued 1 1 1 EXPENDITURES ENCUMBRANCES Total Unexpended Current Unencumbered Prior 2000 expenditures balance encumbrances balance $ 84,249 $ 4,940 $ 89,189 $ - 4,180 4,180 200 1,331 1,531 48,199 - 48,199 20 - 20 7,979 34,426 42,405 7,854 (7,854) - 30,419 1,450 31,869 188,393 - 188,393 260,811 $ - $ 260,811 820 - 820 21,469 - 21,469 26,801 - 26,801 324,980 - 324,980 357,595 59,459 298,136 8,131 - 8,131 400,000 - 400,000 10,000 - 10,000 10,000 - 10,000 20,000 - 20,000 (172,141) - (172,141) 1,421,566 142,850 1,564,416 $ 2,602,192 $ 150,115 $ 2,752.307 $ 3,014,191 59,459 2,954,732 3,625,490 $ 59,459 $ 3,566,031 89 1 � 1 F, ENTERPRISE FUNDS 1 Enterprise Funds are used to account for Borough operations that are financed and operated in a manner similar to private business enterprises. The intent of the Borough is that the costs (expenses, including depreciation) of providing these services to the general public on a continuing basis are financed or recovered primarily L through user charges. 1 1 KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING BALANCE SHEET JUNE 30. 2000 (with comparative totals for 1999) Municipal Kodiak Solid Waste Fisheries Collection and Hospital 911 Research Totals Disposal Facilities Services Center 2000 1999 ASSETS CURRENT ASSETS: Equity in central treasury $ 62,633 $ - $ 31,444 $ 239,114 $ 333,191 $ 100 Temporary investments 653,889 451,134 - 750,123 1,855,146 2,078,749 Accrued interest receivable 5,886 3,922 - 2,220 12,028 1,109 Customer receivables 287,309 217,699 - 5,078 510,086 243,209 Accounts receivable - State of Alaska 31,094 - - - 31,094 - Due from other funds 147,935 - - 400,000 547,935 143,243 Inventories - 277,007 - - 277,007 277,005 Total current assets 1,188.746 949,762 31,444 1,396,535 3.566,487 2,743,415 RESTRICTED ASSETS: Cash with fiscal agent - - - - - 218,013 FIXED ASSETS: ' Unclassified utility plant in service 2,205,383 - - - 2,205,383 2,205,383 Land and improvements - 409,068 - 1,021,998 1,431,066 1,431,067 Buildings - 26,199,619 - 17,840,400 44,040,019 40,071,761 Machinery and equipment 1,031,461 5,353,242 - 1,158,822 7,543,525 7,407,440 Construction work -in- process 1,941,032 - - - 1,941.032 4,563,935 5,177,876 31,961,929 - 20,021,220 57,161,025 55,679,586 Less accumulated depreciation (1,154,640) (6,559,029) - (750,694) (8,464.363) (7,145,916) Net fixed assets 4,023,236 25,402,900 - 19,270,526 48,696,662 48,533,670 I TOTAL $ 5,211,982 S 26.352.662 $ 31,444 $ 20.667,061 $ 52,263.149 $ 51.495.098 1 92 1 1 1 EXMBIT E -1 Total current liabilities 592,731 1,010,004 - 599,457 2,202,192 1,808,932 NONCURRENT LIABILITIES: Notes payable 932,118 1,299,349 - - 2,231,467 Municipal Capital lease obligation - 1,074,993 Kodiak 640,783 Long -term interfund Solid Waste - 7,595,000 7,595,000 Fisheries Accrual for landfill closure and Collection and Hospital 911 Research Totals 1,939,400 Total liabilities 3,591,607 3,384,346 - 8,194,457 15,170,410 Disposal Facilities Services Center 2000 1999 27,315,515 LIABILITIES AND FUND EQUITIES 3,852,495 17,956,116 - 11,920,540 33,729,151 33,033,442 CURRENT LIABILITIES: (925,275) (598,538) - (397,351) (1,921,164) (872,866) I Accounts payable $ 168,685 $ 8,012 $ $ 121,195 $ 297,892 $ 241,835 2,927,220 Retainage payable 78,750 _ 32,160,576 78,750 Accrued expenses 45,993 - - 5,269 51262 25,139 Current portion of notes payable - 592,013 - 592,013 556,625 Current portion of capital lease obligation - 261,984 - - 261,984 376,984 Deferred revenues - - - - 60,000 Due to other funds 299,303 _ 147,995 472,993 920,291 548,349 Total current liabilities 592,731 1,010,004 - 599,457 2,202,192 1,808,932 NONCURRENT LIABILITIES: Notes payable 932,118 1,299,349 - - 2,231,467 2,310,230 Capital lease obligation - 1,074,993 - - 1,074,993 640,783 Long -term interfund borrowings - - - 7,595,000 7,595,000 7,805,000 Accrual for landfill closure and (1,306,845) 444,021 31,444 733,929 postclosure costs 2,066,758 - - - 2,066,758 1,939,400 Total liabilities 3,591,607 3,384,346 - 8,194,457 15,170,410 14,504,345 FUND EQUITIES: - 5,166,717 - 215,486 5,382,203 5,382,203 Retained earnings Contributions in aid (accumulated deficits), of construction: unreserved (1,306,845) 444,021 31,444 733,929 State of Alaska 3,413,636 - - 3,000,000 6,413,636 6,136,796 Other 438,859 17,956,116 - 8,920,540 27,315,515 26,896,646 3,852,495 17,956,116 - 11,920,540 33,729,151 33,033,442 Accumulated amortization (925,275) (598,538) - (397,351) (1,921,164) (872,866) Net contributions in aid of construction 2,927,220 17,357,578 - 11,523,189 31,807,987 32,160,576 Contributed capital - 5,166,717 - 215,486 5,382,203 5,382,203 Retained earnings (accumulated deficits), unreserved (1,306,845) 444,021 31,444 733,929 (97,451) (552,026) Total fund equities 1,620,375 22,968,316 31,444 12,472,604 37,092,739 36,990,753 TOTAL $ 5,211,982 $ 26,352,662 $ 31,444 $ 20.667,061 $ 52,263,149 $ 51,495,098 93 i J KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS (ACCUMULATED DEFICITS) YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) EXHIBIT E -2 Municipal Kodiak Solid Waste Fisheries Totals Collection and Hospital 911 Research Disposal Facilities Services Center 2000 1999 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 Miscellaneous Support goods and 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) retained earnings, at beginning of year (Accumulated deficits) retained earnings, at end of year $ 1,697,403 $ - $ - $ - $ 1,697,403 $ 1,638,078 177,587 975,557 - - - 975,557 855,554 (552,026) - 44,883 - - 44,883 67,327 - - 63,695 - 63,695 75,951 - - - 1,494,342 1,494,342 995,891 - 125,000 - 125,000 91,900 217,662 - 217.662 420,613 - 720,000 - 720,000 720.000 11.895 - - 11,895 7,740 2.684.855 1,107,545 63.695 1,494,342 5,350,437 4,873.054 327,962 63 - 137,827 465,852 485,256 1,176,729 - - - 1,176,729 1,131,856 298,831 - - - 298,831 139,565 300,217 9,269 - 40,127 349,613 307,634 29,005 - - 279,051 308,056 42,891 128,623 - - - 128,623 (260,731) 98,160 1,274,984 - 746.707 2,119,851 653,272 182.957 6.512 - - 189,469 457,727 - 27,494 - 27,494 2,200 - - 35,909 35,909 31,379 64,900 - - 64,900 64,110 - - - 51,137 51,137 - - - 3.359 3.359 - 8,801 - - - 8.801 23,524 2,616.185 1,318.322 35.909 1,258.208 5.228,624 3,078,683 68.670 (210.777) 27,786 236.134 121,813 1.794.371 24,726 21.933 - 45,325 91,984 21,086 (25,651) (223,438) - - (249,089) (313,231) (8.669) - - (8,669) (483) 67,745 (420.951) 27,786 281.459 (43,961) 1,501,743 - - - 786,000 , - - (549,763) (549,763) (978,869) 52.409 598.538 - 397,352 1,048.299 54.340 120,154 177,587 27,786 129,048 454,575 1,363,214 (1.426.999) 266.434 3.658 604.881 (552,026) (1,915,240) $ (1.306.845) $ 444.021 $ 31.444 $ 733.929 $ (97.451) $ (552.026) I ; 94 1 KODIAK ISLAND BOROUGH EXHIBIT E -3 ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED J UNE 30, 2000 (with comparative totals for 1999) Municipal Kodiak Solid Waste Fisheries Collection Hospital 911 Research Totals and Disposal Facilities Services Center 2000 1999 OPERATING INCOME (LOSS) $ 68,670 $ (210,777) $ 27,786 $ 236,134 $ 121,813 $ 1,794,371 ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation Loss on disposal of fixed assets Net assets received from residual equity transfer Changes in assets and liabilities, net of effects of transfer of assets and liabilities from other funds: Customer receivables Due to/from other funds Inventories 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 operating activities CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES: Operating transfers out to other funds Operating transfers in from other funds Net cash used in noncapital and related financing activities 98,160 1,274,984 - 746,707 2,119,851 653,272 - 8,669 - - 8,669 - - - - - 1,486 (44,100) (217,699) - (5,078) (266,877) (17,950) (84,369) (11,391) 11,888 (260,634) (344,506) 954,965 - (2) - - (2) 2 5,243 8,012 (8,230) 51,032 56,057 (16,565) - (60,000) - - (60,000) - 127,358 - - - 127,358 (260,731) - - - - - (38,583) 758 - - (286) 472 4,684 103,050 1,002573 3,658 531,741 1,641,022 1,280,580 171,720 791,796 31,444 767,875 1,762,835 3,074,951 - - - (549,763) (549,763) (978,869) 786,000 (549,763) (549,763) (192,869) (continued) 95 a KODIAK ISLAND BOROUGH EXHIBIT E-3, continued ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) Municipal Kodiak Solid Waste Fisheries Collection and Hospital 911 Research Totals Disposal Facilities Services Center 2000 1999 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction (183,879) 430,478 of capital assets $ (704,219) $ (133,810) $ Interest paid on notes payable, capital lease and interfund borrowings - (223,438) Principal paid on long -term interfund borrowings - - Proceeds from issuance of note payable 513,249 - Principal payments on notes payable - (556,625) Principal payments made on capital lease - (308,401) Contributions in aid of - - 100 44,214 81,065 19,977 231,868 223,603 (1,988.878) construction 265,662 - - - 265,662 Net cash provided by (used in) capital and related financing activities 74,692 (1,222,274) CASH FLOWS FROM INVESTING ACTIVITIES: Changes in restricted assets: Deductions from (additions to) restricted cash - 218,013 Deductions from restricted investments - - Interest and dividends on $ (60,080) $ (898,109) $ (309,804) (223,438) (313,231) ' - (195,000) (195,000) - 513,249 - - (556,625) 418,869 (525,666) - - (308,401) (367,726) 4 - (255,080) (1,402,662) (1,097,558) 1 218,013 (9,810) - 139,520 investments 18,840 18,011 Net (decrease) increase in investments (202,719) 194,454 - Net cash (used in) provided by investing activities (183,879) 430,478 - 276,082 522,681 (1,839,191) Net change in cash and cash equivalents 62,533 - 31,444 239,114 333,091 (54,667) CASH AND CASH EQUIVALENTS, at beginning of year 100 - - - 100 54,767 CASH AND CASH EQUIVALENTS, at end of year $ 62,633 $ - $ 31,444 $ 239,114 $ 333,191 $ 100 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: Contributions in aid of construction received $ 695,708 $ - $ - $ NONCASH NONCAPTTAL FINANCING ACTIVITIES: r Pi 1 E - $ 695,708 $ 30,529,979 1 Residual equity transfers (296.755) - - - (296.755) 234,276 $ 398.953 $ - $ - $ - $ 398.953 $ 30.764.255 96 1 1 KODIAK ISLAND BOROUGH MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FUND BALANCE SHEETS JUNE 30, 2000 A 1999 EXHIBIT E4 ASSET CURRENT ASSETS: Equity in central treasury Temporary investments Customer receivables Accounts receivable - State of Alaska Due from other funds Accrued interest receivable Total current assets FIXED ASSETS: Unclassified utility plant in service Machinery and equipment Construction work -in- process Less accumulated depreciation Net fixed assets TOTAL LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable Retainage payable Due to other funds Accrued expenses Total current liabilities NONCURRENT LIABILITIES: Accrual for landfill closure and postclosure costs Note payable Total noncurrent liabilities FUND EQUITY: Contributions in aid of construction: State of Alaska Other Accumulated amortization Net contributions in aid of construction Accumulated deficits, unreserved Total fund equity TOTAL 2000 1999 $ 62,633 $ 100 653,889 451,170 287,309 243,209 31,094 - 147,935 61,019 5,886 - 1,188,746 755,498 2,205,383 2,205,383 1,031,461 840,492 1,941,032 653,323 (1,154,640) (1,056,480) 4,023,236 2,642,718 $ 5,211,982 $ 3,398,216 $ 168.685 $ 163,442 78,750 - 299,303 - 45,993 19.584 592,731 183,026 2,066,758 1,939,400 932,118 418,869 2,998,876 2,358,269 3,591,607 2,541,295 3,413,636 3,136,796 438,859 19,990 3,852,495 3,156,786 (925,275) (872,866) 2,927,220 2,283,920 (1,306,845) (1,426,999) 1,620,375 856,921 $ 5,211,982 $ 3,398.216 97 KODIAK ISLAND BOROUGH EXHIBIT E -5 MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN ACCUMULATED DEFICITS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) 98 2000 Variance- favorable 1999 Budget Actual (unfavorable) Actual OPERATING REVENUES: Solid waste collection $ 1,579,000 $ 1,697,403 $ 118,403 $ 1,638,078 Solid waste disposal 843,500 975,557 132,057 855,554 Other 6,000 11,895 5,895 7,740 2,428.500 2,684,855 256,355 2,501,372 OPERATING EXPENSES: Personnel services 330,840 327,962 2,878 379,496 Solid waste collection 1,106,260 1,176,729 (70,469) 1,131,856 Refuse disposal - 298,831 (298,831) 139,565 Contracted services 315,000 300,217 14,783 307,634 Repairs and maintenance 46,500 29,005 17,495 42,891 Landfill closure and postclosure costs 235,000 128,623 106,377 (260,731) Depreciation 117,090 98,160 18,930 104,201 General and administration 226,050 182,957 43,093 181,953 Contributions - 8,801 (8,801) 23,524 Recycling services 70,000 64,900 5,100 64,110 2,446.740 2,616,185 (169,445) 2,114,499 Operating (loss) income (18.240) 68,670 (86,910) 386.873 OTHER INCOME (EXPENSE): Interest income - 24,726 24,726 1,296 Interest expense - (25,651) 25,651 - (Loss) income before operating transfer $ (18,240) 67,745 $ (36,533) 388,169 TRANSFER TO OTHER FUNDS: Operating transfer out to other funds: Capital projects - state capital grants - (418,869) Net income (loss) 67,745 (30,700) Amortization of contributions in aid of construction 52,409 54,340 Increase in retained earnings 120,154 23,640 Accumulated deficits, at beginning of year (1,426,999) (1,450,639) Accumulated deficits, at end of year $ (1,306,845) $ (1,426.999) 98 fJ KODIAK ISLAND BOROUGH MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2000 AND 1999 EXHIBIT E -6 2000 1999 OPERATING INCOME $ 68,670 $ 386,873 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation 98,160 104,201 ' Changes in assets and liabilities, net of effects from the transfer of assets and liabilities from other funds: Customer receivables (44,100) (17,950) Due from other funds (86,916) 228,981 Due to other funds 2,547 Accounts payable 5,243 3,047 Accrual for landfill closure and postclosure costs 127,358 (260,731) Other accrued liabilities 758 (871) Total adjustments 103,050 56,677 Net cash provided by operating activities 171,720 443,550 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating transfer out to other fund - (418,869) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (704,219) (3,862) Contributions in aid of construction 265,662 Proceeds from issuance of note payable 513,249 418,869 Net cash provided by capital and related financing activities 74,692 415,007 CASH FLOWS FROM INVESTING ACTIVITIES: Net decrease in investments (202,719) (451,170) Interest and dividends on investments 18,840 1,296 Net cash used in investing activities (183,879) (449,874) Net change in cash and cash equivalents 62,533 (10,186) CASH AND CASH EQUIVALENTS, at beginning of year 100 10,286 CASH AND CASH EQUIVALENTS, at end of year $ 62.633 $ 100 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: Contributions in aid of construction received $ 695,708 $ 653,323 NONCASH NONCAPITAL FINANCING ACTIVITIES: Residual equity transfers (296,755) - $ 398.953 $ 653,323 99 KODIAK ISLAND BOROUGH EXHIBIT E -7 HOSPITAL FACILITIES FUND BALANCE SHEETS JUNE 30, 2000 AND 1999 ASSETS 2000 1999 CURRENT ASSETS: Temporary investments $ 451,134 $ 645,588 Customer receivables 217,699 - Due from other funds - 18,790 Accrued interest receivable 3,922 - Inventories 277,007 277,005 Total current assets 949,762 941,383 RESTRICTED ASSETS: Cash with fiscal agent - 218,013 FIXED ASSETS: Buildings 26,199,619 22,289,005 Machinery and equipment 5,353,242 5,410,563 Land and improvements 409,068 409,069 Construction work -in- process - 3,910,612 Less accumulated depreciation (6,559,029) (6,085,449) Net fixed assets 25,402,900 25,933,800 TOTAL $ 26,352,662 $ 27,093,196 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable $ 8,012 $ - Due to other funds 147,995 178,176 Deferred revenues - 60,000 Current portion of note payable 592,013 556,625 Current portion of capital lease obligation 261,984 376,984 Total current liabilities 1,010,004 1,171,785 Note payable 1,299,349 1,891,361 Capital lease obligation 1,074,993 640,783 Total noncurrent liabilities 2,374,342 2,532,144 3,384,346 3,703,929 FUND EQUITY: Contributions in aid of construction: Other 17,956,116 17,956,116 Accumulated amortization (598,538) - 17,357,578 17,956,116 Contributed capital 5,166,717 5,166,717 Retained earnings, unreserved 444,021 266,434 Total fund equity 22,968,316 23,389,267 TOTAL $ 26,352.662 $ 27,093,196 100 1 ' BUDGET KODIAK ISLAND BOROUGH HOSPITAL FACILITIES FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) EXHIBIT E -8 2000 Variance favorable 1999 Budget Actual (unfavorable) Actual OPERATING REVENUES: State sources - revenue sharing $ 60,590 $ 44,883 $ (15,707) $ 67,327 Lease proceeds 720,000 720,000 - 720,000 Donations 136,900 125,000 (11,900) 91,900 PKIMC gain - 217,662 217,662 420,613 917,490 1,107,545 190,055 1,299,840 OPERATING EXPENSES: Personnel services - 63 (63) - Contracted services - 9,269 (9,269) - Depreciation 586,925 1,274,984 (688,059) 545,084 General and administration 147,875 6,512 141,363 13,810 Medicaid refund - 27,494 (27,494) 2,200 734,800 1,318,322 (583.522) 561,094 Operating income (loss) 182,690 (210,777) (393,467) 738,746 OTHER INCOME (EXPENSES): Interest income 15,660 21,933 6,273 18,948 Interest expense (200,350) (223,438) (23,088) (313,231) Loss on disposal of fixed assets (8,669) (8,669) (483) Net (loss) income $ (2,000) (420,951) $ (418,951) 443,980 Amortization of contributions in aid of construction 598,538 - Increase in retained earnings 177,587 - Retained earnings (accumulated deficit), at beginning of year 266,434 (177,546) Retained earnings, at end of year $ 444,021 $ 266,434 101 KODIAK ISLAND BOROUGH EXHIBIT E -9 HOSPITAL FACILITIES FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2000 AND 1999 2000 1999 OPERATING (LOSS) INCOME $ (210,777) $ 738,746 ADJUSTMENTS TO RECONCILE OPERATING (LOSS) INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation 1,274,984 545,084 Loss on disposal of fixed assets 8,669 - Changes in assets and liabilities: Customer receivables (217,699) - Due from other funds 18,790 481,210 Inventories (2) 2 Accounts payable 8,012 (98,005) Due to other funds (30,181) 178,176 Deferred revenues (60,000) - Total adjustments 1,002,573 1,106,467 Net cash provided by operating activities 791,796 1,845,213 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (133,810) (265,343) Interest paid on note payable and capital lease (223,438) (313,231) Principal payments on note payable (556,625) (525,666) Principal payments made on capital lease (308,401) (367,726) Net cash used in capital and related financing activities (1,222,274) (1,471,966) CASH FLOWS FROM INVESTING ACTIVITIES: Interest and dividends on investments 18,011 18,948 Net (decrease) increase in investments 194,454 (555,717) Deductions from (additions to) restricted cash 218,013 (9,810) Deductions from restricted investments - 139,520 Net cash provided by (used in) investing activities 430,478 (407,059) Net change in cash and cash equivalents - (33,812) CASH AND CASH EQUIVALENTS, at beginning of year - 33,812 CASH AND CASH EQUIVALENTS, at end of year $ - $ - NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: Contributions in aid of construction received $ - $ 17,956,116 NONCASH NONCAPITAL FINANCING ACTIVITIES: Residual equity transfers - 18,790 $ - $ 17,974,906 102 KODIAK ISLAND BOROUGH 911 SERVICES FUND BALANCE SHEETS JUNE 30, 2000 AND 1999 EXHIBIT E -10 ASSETS ASSETS: Equity in central treasury Due from other funds TOTAL 2000 1999 $ 31,444 $ - - 11,888 $ 31,444 $ 11,888 LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable FUND EQUITY: Retained earnings, unreserved 8,230 31,444 3,658 TOTAL $ 31,444 $ 11,888 103 KODIAK ISLAND BOROUGH EXHIBIT E -11 911 SERVICES FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDE JUNE 30, 2000 (with comparative totals for 1999) OPERATING REVENUES: Customer charges OPERATING EXPENSES: Telephone services Operating income Retained earnings (accumulated deficit), at beginning of year Retained earnings, at end of year Variance - favorable 1999 Budget Actual (unfavorable) Actual $ 80,000 $ 63,695 $ (16.305) $ 75,951 80,000 35,909 44,091 31,379 $ - 27,786 $ 27,786 44,572 3,658 $ 31,444 Lur (40,914) $ 3,658 Em KODIAK ISLAND BOROUGH 911 SERVICES FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2000 AND 1999 EXHIBIT E -12 OPERATING INCOME ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Changes in assets and liabilities: Due from other funds Due to City of Kodiak Accounts payable Due to other funds Total adjustments Net cash provided by (used in) operating activities Net change in cash and cash equivalents CASH AND CASH EQUIVALENTS, at beginning of year CASH AND CASH EQUIVALENTS, at end of year 2000 1999 $ 27,786 $ 44,572 11,888 (11,888) - (38,583) (8,230) 8,230 - (13,000) 3,658 (55,241) 31,444 (10,669) 31,444 (10,669) - 10,669 $ 31,444 $ - 105 KODIAK ISLAND BOROUGH KODIAK FISHERIES RESEARCH CENTER FUND BALANCE SHEETS JUNE 30, 2000 AND 1999 EXHIBIT E -13 I FIXED ASSETS: Buildings 2000 1999 ASSETS 1,158,822 1,156,385 CURRENT ASSETS: 1,021,998 1,021,998 Equity in central treasury $ 239,114 $ - Temporary investments 750,123 981,991 Customer receivables 5,078 - Due from other funds 400,000 51,546 Accrued interest receivable 2,220 1,109 Total current assets 1,396,535 1,034,646 FIXED ASSETS: Buildings 17,840,400 17,782,756 Machinery and equipment 1,158,822 1,156,385 Land and improvements 1,021,998 1,021,998 Less accumulated depreciation (750,694) (3,987) Net fixed assets 19,270,526 19,957,152 TOTAL $ 20,667,061 $ 20,991,798 LIABILITIES AND FUND EQUITY 11,920,540 11,920,540 CURRENT LIABILITIES: (397,351) - Accounts payable $ 121,195 $ 70,163 Accrued expenses 5,269 5,555 Due to other funds 472,993 370,173 Total current liabilities 599,457 445,891 NONCURRENT LIABILITIES: Long -term interfund borrowings 7,595,000 7,805,000 Total liabilities 8,194,457 8,250,891 FUND EQUITY: Contributions in aid of construction: State of Alaska 3,000,000 3,000,000 Other 8,920,540 8,920,540 11,920,540 11,920,540 Accumulated amortization (397,351) - 11,523,189 11,920,540 Contributed capital 215,486 215,486 Retained earnings, unreserved 733,929 604,881 Total fund equity 12,472,604 12,740,907 TOTAL $ 20.667.061 $ 20,991,798 ID KODIAK ISLAND BOROUGH EXHIBIT E -14 KODIAK FISHERIES RESEARCH CENTER FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2000 (with comparative totals for 1999) Amortization of contributions in aid of construction 397,352 - Increase in retained earnings 129,048 851,022 Retained earnings (accumulated deficit), at beginning of year 604.881 (246,141) Retained earnings, at end of year $ 733,929 $ 604,881 107 2000 Variance- favorable 1999 Budget Actual (unfavorable) Actual OPERATING REVENUES: Rents and royalties $ 1,484,630 $ 1,494.342 $ 9,712 $ 995,891 OPERATING EXPENSES: Personnel services 102,920 103,742 (822) 81,829 Employee benefits 32,800 34,085 (1,285) 23,931 Miscellaneous 74,800 51,137 23,663 83,633 Depreciation 750,700 746,707 3,993 3,987 Cleaning and janitorial 41,000 40,127 873 21,586 Heating 95,000 67,446 27,554 31,454 Electrical 204,700 162,630 42,070 118,145 Plumbing 200,030 40,478 159,552 6,330 Air conditioning 11,000 7,899 3,101 - Elevators 1,000 598 402 - Support goods and services 3,150 3,359 (209) 816 1,517.100 1,258.208 258,892 371,711 Operating income (32,470) 236,134 268,604 624,180 OTHER INCOME: Interest income 68,000 45,325 (22,675) 842 Income before operating transfers 35,530 281,459 245,929 625,022 TRANSFER (TO) FROM OTHER FUNDS: Operating transfers in from other funds - - - 786,000 Operating transfers out to other funds (553,180) (549,763) 3,417 (560,000) Net transfers (to) from other funds (553,180) (549.763) 3,417 226,000 Net (loss) income $ (517,650) (268,304) $ 249,346 851,022 Amortization of contributions in aid of construction 397,352 - Increase in retained earnings 129,048 851,022 Retained earnings (accumulated deficit), at beginning of year 604.881 (246,141) Retained earnings, at end of year $ 733,929 $ 604,881 107 KODIAK ISLAND BOROUGH KODIAK FISHERIES RESEARCH CENTER FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2000 AND 1999 EXHIBIT E -15 I NONCASH CA PITAL AND R ELAT ED F INANCING ACTIVITIES: Contributions in aid of construction received $ - $ 11,920,540 NONCASH NONCAPITAL FINANCING ACTIVITIES: Residual equity transfers - 215,486 $ - $ 12,136,026 108 2000 1999 OPERATING INCOME $ 236,134 $ 624,180 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation 746,707 3,987 Net assets received from residual equity transfer - 1,486 Changes in assets and liabilities: Customer receivables (5,078) - Due from other funds (348,454) (51,546) Accounts payable 51,032 70,163 Other accrued expenses (286) 5,555 Due to other funds 87,820 143,032 Total adjustments 531,741 172,677 Net cash provided by operating activities 767,875 796,857 CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES: Operating transfers in from other funds - 786,000 Operating transfers out to other funds (549,763) (560,000) Net cash (used in) provided by noncapital financing activities (549,763) 226,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (60,080) (40,599) Principle paid on long -term interfund borrowings (195,000) Net cash used in capital and related financing activities (255,080) (40,599) CASH FLOWS FROM INVESTING ACTIVI'T'IES: Net increase (decrease) in investments 231,868 (981,991) Interest and dividends on investments 44,214 (267) Net cash provided by (used in) investing activities 276,082 (982,258) Net change in cash and cash equivalents 239,114 - CASH AND CASH EQUIVALENTS, at beginning of year - - CASH AND CASH EQUIVALENTS, at end of year $ 239,114 $ - NONCASH CA PITAL AND R ELAT ED F INANCING ACTIVITIES: Contributions in aid of construction received $ - $ 11,920,540 NONCASH NONCAPITAL FINANCING ACTIVITIES: Residual equity transfers - 215,486 $ - $ 12,136,026 108 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, 2000 AND 1999 EXHIBIT F -1 2000 1999 ASSETS CURRENT ASSETS: Account receivables, net $ - $ 471 Due from other funds - 113,435 Prepaid expenses - 8,424 Total current assets - 122,330 FIXED ASSETS: Machinery and equipment - 618,876 Less accumulated depreciation - (303,274) Net fixed assets - 315,602 TOTAL $ - $ 437,932 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable $ - $ 8,260 Accrued liabilities - 39,888 Total current liabilities - 48,148 FUND EQUITY: Contribution in aid of construction - 617,382 Accumulated deficit - (227.598) Total fund equity - 389,784 TOTAL $ - $ 437.932 �M� KODIAK ISLAND BOROUGH EXHIBIT F -2 MANAGEMENT INFORMATION SYSTEM FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN ACCUMULATED DEFICIT BUDGET AND ACTUAL Y ENDED JUNE 30, 2000 (with comparative totals for 1999) 2000 Variance- favorable 1999 Budget Actual (unfavorable) Actual OPERATING REVENUES: Charges for services: General Fund $ - $ - $ - $ 302,920 General Fund (School District support) - - - 264,520 Mental Health Center - - - - Day Care Assistance Fund - - - 5,170 Municipal Solid Waste Collection and Disposal Fund - - - 7,990 Land Sale Fund - - - 10,590 Kodiak Island Hospital and Care Center - - 16,667 Sale of copies - - - 24,524 - 632,381 OPERATING EXPENSES: Personnel services Employee benefits Contracted services Support goods and services Depreciation General and administration Net loss ACCUMULATED DEFICITS, at beginning of year Net effect of residual equity transfer ACCUMULATED DEFICIT, at end of year 311,901 90,613 5,700 156,508 106,464 14,016 - - 685,202 $ - - $ - (52,821) (227,598) (174,777) 227,598 - $ - $ (227,598) 110 1 1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 1 1 KODIAK ISLAND BOROUGH MANAGEMENT INFORMATION SYSTEMS FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2000 AND 1999 2000 1999 $ - $ (52,821) OPERATING LOSS ADJUSTMENTS TO RECONCILE OPERATING LOSS TO NET CASH 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 used in operating activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING 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 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Residual equity transfer III EXHIBIT F -3 106,464 24,036 (471) (113,435) 8,424 (1,705) 1,076 24,389 (28,432) (58,810) (87,242) $ 227,598 $ 87,242 1 1 L r 1 C 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 EXHIBIT G -1 GENERAL FIXED ASSETS ACCOUNT GROUP ' SCHEDULES OF FIXED ASSETS BY SOURCE JUNE 30, 2000 and 1999 �J GENERAL FIXED ASSETS: Land Buildings Improvements other than buildings Machinery and equipment Construction work -in- progress $ 5,434,991 88,811,586 3,731,098 1,790,739 1,683,416 1999 $ 5,397,391 88,432,326 890,721 1,509,219 4,836,779 ' 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 $ 101,451,830 $ 101,066,436 $ 57,755,638 4,316,206 19,327,397 9,830,144 1,125,780 3,786,861 1,259,300 4,050,504 $ 57,755,638 4,316,206 19,327,397 9,452,314 1,116,824 3,786,861 1,259,300 4,051,896 $ 101,451,830 $ 101,066,436 113 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY AS OF JUNE 30, 2000 EXHIBIT G -2 I Improvements Machinery other than and Total Land Buildings buildings equipment Staff agencies: Borough mayor Borough clerk Finance department Management information systems Assessing department Community development department Borough engineering and facilities department Resource management General and administration Mental health center Child care assistance program Coastal management Total staff agencies Public safety: Emergency preparedness Womens Bay Service Area Fire Protection Area No. 1 Kodiak Transit Authority Woodland Acres Service Area Total public safety Schools Teacher housing General government buildings Building sites Playgrounds Other Undeveloped land Construction work -in- progress Total general fixed assets $ 20,420 $ - $ - $ - $ 20,420 40,637 - - - 40,637 120,487 - - - 120,487 351,617 - - - 351,617 65,020 - - - 65,020 101,804 - - - 101,804 83,048 - - - 83,048 19,166 - - 4,012 15,154 111,869 - - - 111,869 532,623 - 379,260 - 153,363 2,265 - - - 2,265 3,685 - - - 3,685 1,452,641 - 379,260 4,012 1,069,369 227,598 - 100,000 - 127,598 651,422 - 425,655 - 225,767 1,152,915 241,137 614,520 - 297,258 26,460 - 26,460 - - , 3,014 - - 3,014 - 2,061,409 241,137 1,166,635 3,014 650,623 84,078,538 - 81,240,673 2,837,865 - 238,792 - 231,560 7,232 - 4,867,291 - 4,793,458 33,086 40,747 404,403 404,403 - - - 713,989 - - 713,989 - 1,161,900 - 1,000,000 131,900 ' 30,000 91,464,913 404,403 87,265,691 3,724,072 70,747 4,789,451 4,789,451 - - 99,768,414 5,434,991 88,811,586 3,731,098 1,790,739 1,683,416 - 1,217,669 465,747 ' $101,451,830 $5,434,991 $ 90,029,255 $ 3,731,098 $ 2,256,486 �s 114 1 K O DIAK ISLAND BOROUGH GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS ' BY FUNC 'iON AND ACTIVITY FOR THE YEAR ENDED JUNE 30, 2000 EXHIBIT G -3 General fixed General fixed assets at assets at July 1, 1999 Additions Deletions June 30, 2000 Staff agencies: ' Borough mayor $ 23,189 $ - $ 2,769 $ 20,420 Borough clerk 44,183 - 3,546 40,637 Finance department 121,612 - 1,125 120,487 ' Management information systems 356,124 4,507 351,617 Assessing department 62,665 2,355 - 65,020 Community development department 102,344 - 540 101,804 Borough engineering and facilities department 81,251 1,797 - 83,048 ' Land sales 19,166 - - 19,166 General and administration 116,937 - 5,068 111,869 Mental Health Center 158,674 379,260 5,311 532,623 Child Care Assistance Program 2,265 - - 2,265 Coastal management 3,685 - - 3,685 Total staff agencies 735,971 739,536 22,866 1,452,641 Public safety: Emergency preparedness 227,598 - 227,598 ' Fire Protection Area No. 1 1,142,196 10,719 1,152,915 Womens Bay Service Area 644,936 6,486 - 651,422 Woodland Acres Service Area 3,014 - - 3,014 ' Kodiak Transit Authority 99,555 73,095 26,460 Total public safety 2,117,299 17,205 73,095 2,061.409 Schools 81,245,393 2,833,145 - 84,078,538 Teacher housing 231,560 7,232 - 238,792 General government buildings 4,867,291 4,867,291 Building sites 404,403 - - 404,403 Playgrounds 713,989 - - 713,989 Other 1,161.900 1,161,900 88.624,536 2,840,377 - 91,464,913 Undeveloped land 4,751,851 38,992 1,392 4,789,451 96,229,657 3,636,110 97,353 99,768,414 Construction work -in- progress 4,836,779 36,906 3,190,269 1,683,416 Total general fixed assets $101.066.436 $ 3,673.016 $ 3,287,622 $101,451,830 115 1 1 1 1 1 1 J 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 EXHIBIT H -1 GENERAL LONG -TERM DEBT ACCOUNT GROUP ' SCHEDULES OF LONG -TERM DEBT YEARS ENDED JUNE 30, 2000 AND 1999 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 1999 Amount to be provided: General obligation bonds Judgements Environmental Protection Agency loan Alaska Dept. of Environmental Conservation loans ' TOTAL GENERAL OBLIGATION BONDS: 1989 refunding 1993 bonds ' 1994 bonds 1998 refunding OTHER LONG -TERM DEBT: Judgement payable Environmental protection agency loan Alaska Dept. of Environmental Conservation loans ' Accrued annual leave I TOTAL $ 272,651 $ 340,159 132,006 122,141 404,657 462,300 16,752,349 18,569,841 1,350,000 - 93,749 114,583 105,272 104,947 18,301,370 18,789,371 $ 18,706,027 $ 19,251,671 $ 1,155,000 $ 2,235,000 5,295,000 6,055,000 1,030,000 1,030,000 9,545,000 9,590,000 17,025,000 18,910,000 1,350,000 - 93,749 114,583 105,272 104,947 132,006 122,141 1,681,027 341,671 $ 18,706,027 $ 19,251,671 1 117 ADDITIONAL INFORMATION BONDED INDEBTEDNESS The following schedules reflect total bonded indebtedness of the Borough by bond issue. Each issue outstanding is reflected by date, interest rate, inclusive bond numbers, and amount of principal and interest due. Total indebtedness is reflected on a summary page of all debts not defeased. KODIAK ISLAND BOROUGH EXHIBIT I -1 KODIAK, ALASKA SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY AS OF JUNE 30, 2000 Annual principal and interest requirements on General Obligation Refunding and Construction Bonds Year Principal Interest Total 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 1,090,000 424,306 1,514,306 2008 1,150,000 394,095 1,544,095 2009 1,200,000 344,646 1,544,646 2010 1,250,000 293,046 1,543,046 2011 1,305,000 239,296 1,544,296 2012 1,360,000 183,180 1,543,180 2013 1,420,000 124,700 1,544,700 2014 1,480,000 65,635 1,545,635 $17,025.000 $ 5,761,116 $ 22,786,116 119 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 1,161 have been retired. Bonds number 1,162 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. Bond Principal Interest Interest Fiscal Interest numbers due due due year rate inclusive August 1 August 1 February 1 Total 2001 7.00 1770 -2000 $ 1,155,000 $ 40.425 $ - $ 1,195,425 120 KODIAK ISLAND BOROUGH EXHIBIT 1 -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. 121 Interest Principal Interest Fiscal Interest due due due year rate August 15 February 15 February 15 Total 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 $ 446,823 $ 5,295.000 $ 446.823 $ 6,188,646 121 KODIAK ISLAND BOROUGH EXHIBIT 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. 122 Interest Principal Interest Fiscal Interest due due due year rate August 15 February 15 February 15 Total 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 $ 166,860 $ 1,030,000 $ 194,670 $ 1,391,530 122 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. 123 Interest Principal Interest Fiscal Interest due due due year rate August 15 February 15 February 15 Total 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 32,818 1,545,638 $ 2,232,762 $ 9,545,000 $ 2,232,760 $14,010,522 123 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 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 $ 52,083 $ 41,666 $ - $ 93,749 * No interest is payable until a payment due is in default; then interest, penalties and fees become due 124 1 s 1 I 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 1 KODIAK, ALASKA GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION , LAST TEN FISCAL YEARS Fiscal General Health and year government sanitation (b) 1991 $ 2,791,798 $ 621,000 1992 2,739,848 706,251 1993 2,955,824 674,032 1994 2,555,349 690,430 1995 2,681,472 1,442,644 1996 2,941,453 1,390,307 1997 2,664,204 1,393,016 1998 2,848,474 1,506,992 1999 2,733,502 1,179,420 2000 2,540,354 730,888 (a) Includes general fund only (b) Includes operating transfers for this function Source: Borough general ledger Education (b) $ 2,143,633 3,027,510 3,374,721 3,615,695 3,861,967 4,678,830 5,083,942 6,466,321 7,044,970 6,500,341 Other operating transfers Total 125 $ 460,325 500,000 137,962 322,228 164,649 267,594 250,000 571,296 55,905 $ 6,016,756 6,973,609 7,142,539 7,183,702 8,150,732 9,278,184 9,391,162 11,393,083 10,957,892 9,827,488 KODIAK ISLAND BOROUGH TABLE 2 KODIAK, ALASKA GENERAL REVENUES BY SOURCE LAST TEN FISCAL YEARS Operating and Licenses, Inter- residual Fiscal permits governmental Investment equity year Taxes and fees revenue income transfers Total 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 2000 7,799,458 92,609 1,770,040 358,352 129,830 10,150,289 (a) Includes general fund only Source: Borough general ledger 126 KODIAK ISLAND BOROUGH ' KODIAK ALASKA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS TABLE 3 127 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 ' 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% 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% 1 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% ' 2000 7,743,649 7,507,018 96.9% 175,066 7,682,084 99.2% 316,482 4.1% Source: Borough general ledger 127 KODIAK ISLAND BOROUGH TABLE 4 ' KODIAK, ALASKA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Source: Borough assessment and tax records Last Ten Years Assessed Values J 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 128 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 ' 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 2000 594,870,287 614,419,200 120,828,748 336,548,600 715,699,035 950,967,800 75.26 , Source: Borough assessment and tax records Last Ten Years Assessed Values J 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 128 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY TAX RATES AND CONTRIBUTIONS TO THE SCHOOL DISTRICT (PER $100 OF ASSESSED VALUE) LAST TEN FISCAL YEARS Assessed Amount of Millage TABLES Value PROPERTY TAX RATES Equivalent 1991 $ 479,942,347 $ 2,838,397 Woodland 1992 516,304,869 3,620,202 7.01 1993 559,359,084 Acres 6.91 1994 591,436,473 3,990,847 6.75 1995 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. 1 Bay 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 2000 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 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 2000 715,699,035 6,678,652 9.33 Source: Borough ordinance and assessment 129 I KODIAK ISLAND BOROUGH TABLE 6 KODIAK, ALASKA TEN LARGEST PROPERTY TAXPAYERS YEAR ENDED JUNE 30.2000 Source: Borough tax records 130 Percentage Percentage of total 1999 Net of total assessed Assessed taxes taxes value valuation levied levied International Seafoods 2.3% $ 16,796,047 $ 173,885 2.3% Western Alaska Fisheries 1.9% 13,548,984 130,265 1.7% Trident Seafood Corp 1.6% 11,747,515 118,299 1.5% T.U. of the Northland 1.6% 11,728,531 118,232 1.5% Alaska Pacific Seafoods 1.6% 11,121,991 111,230 1.4% King Crab /Ocean Beauty 1.4% 10,270,641 106,212 1.4% CSX Lines LLC 1.3% 9,059,159 98,307 1.3% Safeway /MBPA 1.3% 9,034,762 97,914 1.3% Kodiak Fishmeal Co. 1.2% 8,898,859 87,433 1.1% Walmart 0.8% 5,486,700 61,725 0.8% Totals 15.0% $ 107,693,189 $ 1,103,502 14.3% Source: Borough tax records 130 KODIAK ISLAND BOROUGH KODIAK, ALASKA ' RATIO OF NET GENERAL BONDED DEBT 3) LAST TEN FISCAL YEARS TABLE 7 Net bonded debt per capita $ 410 363 298 1,560 1,515 1,393 1,502 1,381 1,341 1,199 Ratio of net ' Less Debt bonded deb Fiscal Assessed Gross Service Net bonded to assessed year Population value bonded debt Fund debt value 1991 15,679 $ 479,942,347 $ 13,735,000 $ 7,307,730 $ 6,427,270 1.3 ' 1992 15,535 516,304,869 12,195,000 6,556,480 5,638,520 1.1 ' 1993 15,535 559,359,084 10,470,000 5,847,171 4,622,829 0.8 1994 15,245 591,436,473 27,915,000 4,133,559 23,781,441 4.0 ' 1995 15,575 614,570,795 25,665,000 2,075,768 23,589,232 3.8 ' 1996 15,400 M 640,462,576 23,205,000 1,759,644 21,445,356 3.3 1997 14,058 (b' 654,134,651 21,660,000 549,569 21,110,431 3.2 1998 14,181 (b) 681,342,892 20,020,000 432,942 19,587,058 2.9 ' 1999 13,848 (b) 686,856,392 18,910,000 340,159 18,569,841 2.7 2000 13,989 M 715,699,035 17,025,000 255,333 16,769,667 2.3 Sources: (a) Information obtained from assessment records and Borough general ledger except as otherwise noted (b) Information obtained from State of Alaska, Department of Community and Regional Affairs, Certified Population for Revenue Sharing Program ' 131 Net bonded debt per capita $ 410 363 298 1,560 1,515 1,393 1,502 1,381 1,341 1,199 KODIAK ISLAND BOROUGH KODIAK, ALASKA COMPUTATION OF DIRECT AND OVERLAPPING DEBT JUNE 30, 2000 TABLE 8 Percentage Kodiak Island Net debt applicable to this Borough outstanding governmental share of (a) unit (b) debt (c) Kodiak Island Borough: General obligation bonds $ 16,769,667 100% $ 16,769,667 City of Kodiak: Revenue bonds 3,955,000 100% 3,955,000 Total $ 20,724,667 $ 20,724,667 (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 132 KODIAK ISLAND BOROUGH KODIAK, ALASKA COMPUTATION OF LEGAL DEBT MARGIN JUNE 30, 2000 TABLE 9 Assessed value Plus exempt property Total $ 715,699,035 2,475,199,399 $ 3,190,898,434 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 133 KODIAK ISLAND BOROUGH KODIAK, ALASKA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES AND TRANSFERS LAST TEN FISCAL YEARS Source: Borough general ledger and debt documents 134 TABLE 10 t Total Ratio of general debt service Fiscal Interest Total debt expenditures to general year Principal (a) and fees service and transfers expenditures 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 2000 1,905,834 858,163 2,763,997 9,827,488 28.1 (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 134 TABLE 10 t KODIAK ISLAND BOROUGH KODIAK, ALASKA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS TABLE 11 135 Percent of Fiscal School Unemployment year Population (a) enrollment (b) rate (c) % 1991 15,679 2,408 8.2% 1992 15,535 2,525 5.1% 1993 15,535 2,597 6.0% 1994 15,245 2,748 9.4% 1995 15,575 2,711 11.2% 1996 15,400 2,872 13.7% 1997 14,058 2,862 7.7% 1998 14,181 2,851 8.2% 1999 13,848 2,798 6.8% 2000 13,989 2,810 7.2% 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 135 KODIAK ISLAND BOROUGH TABLE 12 KODIAK, ALASKA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS *Estimated actual value of real property Source: Borough assessing records, City of Kodiak building department and local bankers 136 CONSTRUCTION Commercial Residential Deposits Fiscal No, of No. of in local PROPERTY VALUE* year permits Value permits Value banks Commercial Residential Nontaxable 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 2000 54 2,720,259 156 9,086,074 120,465,733 193,882,996 433,023,355 2,475,199,399 *Estimated actual value of real property Source: Borough assessing records, City of Kodiak building department and local bankers 136 KODIAK ISLAND BOROUGH KODIAK, ALASKA MISCELLANEOUS STATISTICAL DATA LAST TEN FISCAL YEARS Date of incorporation - September 30, 1963, Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended, Form of Government - Mayor /Assembly 1991 1992 1993 1994 Land area - square miles 7,130 7,130 7,130 7,130 Miles of improved street 21.5 21.5 21.5 21.6 Miles of sanitary sewers 16.0 16.0 16.7 16.8 Number of water taps 748 873 877 913 Number of sanitary sewer taps 727 851 858 891 Building permits: Permits issued 221 211 108 191 Value of buildings (thousands) 9,399 12,950 9,578 4,740 Fire protection: Number of fire stations 2 2 2 2 Number of employees 1 1 1 1 Police protection - none Recreation: Parks - number of acres 223 223 223 223 Facilities: Number of playgrounds 15 15 15 15 Number of swimming pools 1 1 1 1 Education: Number of schools: City of Kodiak Elementary 3 3 3 3 City of Kodiak Junior High 1 1 I 1 City of Kodiak High School 1 1 1 1 Village Schools (a) 9 9 9 9 Number of personnel: (b) Administration 7.0 6.0 5.0 5.0 Principals 9.5 9.5 9.5 9.5 Teachers 165.5 166.3 172.4 180.0 Technical 6.5 6.5 6.5 6.5 Clerical and Aides 70.1 64.1 75.3 81.3 MaintenancefWarehouse 18.8 19.2 19.1 19.1 Custodial 23.4 21.2 21.2 21.7 Food Service 8.8 8.4 8.3 8.3 Total number of personnel 309.6 301.2 317.3 331.4 Number of students 2,486 2,602 2,632 2,802 Number of municipal employees 75 72 67 64 Elections: Number of registered voters 6,707 6,263 6,654 7,061 Number voting in last election 1,959 1,986 2,328 2,634 Percent of registered voters 29.0% 31.8% 35.0% 37.0% (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 138 TABLE 13 1995 1996 1997 1998 1999 2000 7,130 7,130 7,130 7,130 7,130 7,130 21.6 21.6 24.7 24.7 25.0 25.0 16.8 16.8 - (c) - (c) - (c) - (c) 921 921 - (c) - (c) - (c) - (c) 899 899 - (c) - (c) - (c) - (c) 218 201 148 188 192 210 10,360 11,728 7,822 24,780 15,007 11,806 2 2 2 2 2 2 1 1 1 1 1 1 223 224 224 224 224 224 15 16 16 16 16 16 1 1 1 1 1 1 3 4 4 4 4 4 1 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 5.0 6.0 6.0 5.2 5.2 5.2 11.0 12.0 11.7 11.4 11.4 11.4 185.3 183.8 188.5 179.6 178.1 178.1 6.5 3.0 3.5 9.0 9.0 9.0 73.3 61.7 63.7 72.7 75.2 75.2 19.7 12.0 9.0 10.0 8.0 8.0 21.6 22.5 26.3 27.6 30.6 30.6 8.5 3.7 4.2 6.3 6.7 6.7 330.9 304.7 312.9 321.8 324.2 324.2 2,773 2,793 2,809 2,897 2,815 2,798 65 63 63 50 46 36 7,382 8,217 9,350 9,967 10,389 9,935 2,113 1,471 2,120 2,076 1,972 2,525 29.0% 17.9% 22.70% 20.8% 19.0% 25.4% 139