Loading...
CAFR FY2001KODIAK ISLAND BOROUGH Table of Contents Page Introductory Section Elected Officials (Photographs) v Borough Officials A Boards and Committees vii Map of Kodiak Island Borough ix GFOA Certificate of Achievement x Organizational Chart xi Letter of Transmittal xii Financial Section Independent Auditors' Report 1 General Purpose Financial Statements: Combined Balance Sheet — All Fund Types, Account Groups and Discretely Presented Component Unit 3 Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances — All Governmental Fund Types and Discretely Presented Component Unit 7 Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances — Budget and Actual — General Fund, Special Revenue Fund and Debt Service Fund 9 Combined Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings (Accumulated Deficits) — Proprietary Fund Types 11 Combined Statement of Cash Flows — Proprietary Fund Types 12 Notes to Financial Statements 14 Additional Information Combining, Individual Fund and Account Group Financial Statements and Schedules: General Fund: Balance Sheets 36 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances — Budget and Actual 37 Schedule of Expenditures and Transfers — Budget and Actual 39 11 KODIAK ISLAND BOROUGH Table of Contents Special Revenue Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances (Accumulated Deficits) Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances — Budget and Actual: Fire and Road Service Areas: Fire: Fire Protection Area No. 1 Womens Bay Fire Department Kodiak Airport Fire District Road: Monashka Bay Road Service Area Service District No. 1 Womens Bay Service Area Bay View Road Service Area Service Area No. 2 Mental Health Center Coastal Management Child Care Assistance Program Welfare to Work Program L.E.P.C. Land Sales Buildings and Grounds Woodland Acres Street Light Service Area Kodiak Arts Council Facilities Tourism Development Kodiak Transit Authority Debt Service Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures Transfers and Changes in Fund Balances Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance — Budget and Actual: Education and Health Other Page C!! 48 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 it KODIAK ISLAND BOROUGH Table of Contents Page Capital Projects Funds: Combining Balance Sheet 75 Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances 76 Schedule of Capital Projects 77 Enterprise Funds: Combining Balance Sheet 79 Combining Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings (Accumulated Deficits) 80 Combining Statement of Cash Flows 81 Municipal Solid Waste Collection and Disposal Fund: Balance Sheets 82 Statement of Revenues, Expenses, Transfers and Changes in Accumulated Deficits — Budget and Actual 83 Statements of Cash Flows 84 Hospital Facilities Fund: Balance Sheets 85 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings — Budget and Actual 86 Statements of Cash Flows 87 911 Services Fund: Balance Sheets 88 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings — Budget and Actual 89 Statements of Cash Flows 90 Kodiak Fisheries Research Center Fund: Balance Sheets 91 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings — Budget and Actual 92 Statements of Cash Flows 93 iii General Fixed Assets Account Group: Schedules of Fixed Assets by Source Schedule of General Fixed Assets by Function and Activity Schedule of Changes in General Fixed Assets by Function and Activity General Long Term Debt Account Group: Schedules of Long — Term Debt Additional Information — Bonded Indebtedness: Summary of Bonded Debt Service Requirements to Maturity General Obligation Bonds, 1993 Series A General Obligation Bonds, 1994 Series A General Obligation Bonds, 1998 Series A General Obligation Bonds, 2000 Series E General Obligation Bonds, 2000 Series F Statistical Section ' Statistical Tables: General Governmental Expenditures and Other Uses by Function — Last Ten Fiscal Years General Revenues by Source — Last Ten Fiscal Years Property Tax Levies and Collections — Last Ten Fiscal Years Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years Property Tax Rates and Contributions to the School District ' Last Ten Fiscal Years Ten Largest Property Taxpayers Ratio of Net General Bonded Debt — Last Ten Fiscal Years ' Computation of Direct and Overlapping Debt Computation of Legal Debt Margin Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures and Transfers — Last Ten Fiscal Years Demographic Statistics — Last Ten Fiscal Years Property Value, Construction and Bank Deposits — Last Ten Fiscal Years ' Miscellaneous Statistical Data — Last Ten Fiscal Years Page 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 iv INTRODUCTORY SECTION MAYOR AND ASSEMBLY MEMBERS Robin Heinrichs Deputy Mayor, At Large, 2001 Gabrielle LeDoux Mayor, 2001 Pat Branson At Large, 2001 Tom Abell At Large, 2002 Shawn (Tuck) Bonney At Large, 2002 Greg Razo At Large, 2003 Wayne Stevens At Large, 2003 V Darlene Turner At Large, 2002 � I KODIAK ISLAND BOROUGH ' KODIAK, ALASKA BOROUGH OFFICIALS YEAR ENDED JUNE 30, 2001 BOROUGH ASSEMBLY ' Tom Abell `02 Tuck Bonney '02 Patricia Branson '01 Robin Heinrichs (Deputy Mayor) `01 Greg Razo '03 Wayne Stevens `03 Darlene Turner `02 BOROUGH MAYOR Gabrielle LeDoux '01 PatrickCarlson .................................................................................................... ............................... Borough Manager Karleton G. Short .................................................................................. ............................... Finance Director/Treasurer Bud Cassidy .............................................................................. ............................... Engineering and Facilities Director JudithA. Nielsen, CMC ........................................................................................... ............................... Borough Clerk Duane Dvorak ............................................................................ ............................... Community Development Director Vacant .......................................................................................................... ............................... ....................... Assessor RobertA. Himes .......................................................................... ............................... ......................Assistant Fire Chief Jamin, Ebell, Schmitt & Mason ...................... ............................... ........................Borough Attorney (Contracted Firm) Betty Walters .................................................................................. ............................... Superintendent, School District MaryMunk ....................................................................................................... ............................... General Accountant MarianRoyall .................................................................................................. ............................... Revenue Accountant Laurie Whiddon .................................................................................................... ............................... Purchasing Agent i 1 vi KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 2001 School Board * Jeff Stephan Alice Knowles Norm Wooten Jack McFarland Roy Brown Mike Woolard, USCG Rep. Greg Razo — Assembly Rep. Tuck Bonney — Assembly Rep. Sheila Roberts - Staff Rebecca Moore, Student Rep. Betty Walters, KIBSD, ex- officio 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 Mental Health Center Advisory Board Jody Burcham Thia Falcone David Davis Patricia Stokley Crowe Steven Honnold Lorri Doyle Cecil Ranney Pam Foreman Darlene Turner, Assembly Rep. Lt. Tish Palmer, USCG Rep, ex- officio Karen Perkins, KAMI Rep., ex- officio Welby Jensen, MD, Providence Rep, ex- officio Woodland Acres Street Lighting Service Area Advisory Board Phillip Cline Kevin Arndt Citizens Board of Equalization * Jim Carmichael Tim Hurley Cheryl McNeil Carrie Morton Jim Nagan Michael Machulsky, Alternate Pat Carlson, KIB staff Judi Nielson, KIB staff Parks and Recreation Committee Vincent Walser Kenneth Hansen Wayne Stevens, Assembly Rep. Walter Stewart, P &Z Rep. Wayne Biessel, State Rep., ex- officio Ian Fulp, City Rep., ex- officio Alice Knowles, School Board Rep Duane Dvorak, KIB Rep Rebecca Moore, Student Rep. Building Code Board of Appeals/ (Architectural Review Board) Scott Arndt Gerald Cloudy Jerrol Friend Gregg Hacker Charles Jerling Jay Johnston Tom Abell, Assembly Rep. Bob Tucker, KIBSD Rep., ex- officio Roy Brown, School Board Rep., ex officio Pat Carlson, KIB Rep., ex- officio Planning and Zoning Commission * Clarence W. Selig Paul Alexander Donna Bell Robert Lindsey Reed Oswalt Walter Stewart Duane Dvorak, KIB Staff Personnel Advisory Board Paul Alexander Bill King Chris Nielsen Susan Eoff Jody Spivey Lauri Whiddon, KIB staff vii I KODIAK ISLAND BOROUGH ' KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 2001 ' Data Processing Steering Committee ' Pat Carlson ' Gabrielle LeDoux Karleton Short Betty Walters David Jones f Jim Nagen Fire Protection Area No. 1 Advisory Board ' * Scott Arndt Jeff Halcomb Eric McFarlin Roy Aguirre Cliff Davidson Robert Himes, ex- officio Monashka Bav Road Service Area Bay View Road Service Area ' Advisory Board ' Dawn Black Gale Hagemeyer Reed Oswalt Fred Roberts James Schauff Monashka Bav Road Service Area E_ mergence Services Organization Pat Carlson, Borough Manager Gabrielle LeDoux, Borough Mayor Carolyn Floyd, City Mayor Linda Freed, City Manager, City of Kodiak Capt. Jimmy Ng, USCG Capt. Darrel Nelson, USCG Sgt. Maurice Hughes, Alaska State Troopers Service Area No. 1 Advisory Board Advisory Board ' * Dave Sundberg Alayne Larsen Darlene Turner Jeff Hamer Jack McFarland E_ mergence Services Organization Pat Carlson, Borough Manager Gabrielle LeDoux, Borough Mayor Carolyn Floyd, City Mayor Linda Freed, City Manager, City of Kodiak Capt. Jimmy Ng, USCG Capt. Darrel Nelson, USCG Sgt. Maurice Hughes, Alaska State Troopers Service Area No. 1 Advisory Board viii Richard Walker Womens Bav Service Area Advisory Board * Mike Wilchek Fred Waltman, II David Conrad Linda Estes Edward Gondek Linda Hinson Chris Lynch Dale L. Rice, ex- officio Kodiak Area Transit Svstem 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 Duane Dvorak, KIB Staff Airport Advisory Committee * Stosh Anderson Charles Barber Dean Andrew Bill King Murphy Forner Penny Jordahl Bob Stanford Wayne Stevens Justin Vincent John Chya, ex- officio CDR Jim Poyer, USCG ex- officio Borough Clerk's Office, KIB staff Service Area No. 2 Commission Corinne Estelle Ferre Norman Mullan Airport Fire Protection District Advisory Board Michael Machulsky Arlene Mauldin Rene Sy * Indicates chair Robert Greene Kevin Arndt Scott Arndt Ed Mahoney Kaye McClain Jennifer Spencer f viii Richard Walker Womens Bav Service Area Advisory Board * Mike Wilchek Fred Waltman, II David Conrad Linda Estes Edward Gondek Linda Hinson Chris Lynch Dale L. Rice, ex- officio Kodiak Area Transit Svstem 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 Duane Dvorak, KIB Staff Airport Advisory Committee * Stosh Anderson Charles Barber Dean Andrew Bill King Murphy Forner Penny Jordahl Bob Stanford Wayne Stevens Justin Vincent John Chya, ex- officio CDR Jim Poyer, USCG ex- officio Borough Clerk's Office, KIB staff Service Area No. 2 Commission Corinne Estelle Ferre Norman Mullan Airport Fire Protection District Advisory Board Michael Machulsky Arlene Mauldin Rene Sy * Indicates chair ARCTIC OCEAN V P Row RRULWOE BAY k zw 401AK KARLU MAX S' LD AMOK a KODIAK +' ISLAND d BOROUGH Iv` 4� NOME 90 � AKIR70 SOUK llll l rr ��r^�� �� ' a 4 I BETHEL BRISTOL BAY O w-• a rpm WE _ — -` �cnc — .1 '11 L FAIRBANKS ALASKA VALDEZ f GULF OF ALASKA �* KODIAK ISLAND oral NORTH PACIFIC OCEAN 1 1 1 1 1 1 1 1 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, 2000 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 t standards in government accounting and financial reporting. SMA� "00� M � Pitsident ' Executive Director i� 1 KODIAK ISLAND BOROUGH ORGANIZATIONAL CHART F'IS'CAL YEAR 2001 ASSU l% SOROUM MANW" SECRETARY M! AS IVANT FIRE CRU + h YAMITEwxa WORKER SECRETARY III 1 "Nommownw- ••y' s- 1' M SECRETARY III �- N Mhf ISLAND 9UNWH M � NITS COUNCIL OIRECTOR ASSISTANT CLERK N+ N y' h y" ,1 I Kodiak Island Borough Finance Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone(907)486 -9323 Fax(907)486 -9392 October 31, 2000 To the Honorable Mayor and Members of the Assembly Kodiak Island Borough Kodiak, Alaska The comprehensive annual financial report (CAFR) of the Kodiak Island Borough (Borough), Kodiak, Alaska, for the fiscal year ended June 30, 2001, is submitted herewith. The Borough Finance Department prepared this report. Responsibility for the accuracy, completeness, and fairness of presentation, including all disclosures, rests with the Borough. We believe the data, as presented, is accurate in all material respects, is presented in a manner designed to fairly set forth the financial position and results of operations of the Borough as measured by the financial activity of its various funds. All disclosures necessary to enable the reader to gain maximum understanding of the Borough's financial affairs have been included. This comprehensive annual financial report is presented in three main sections: introductory, financial, and statistical. The introductory section includes background on the Borough, the fund accounting concepts used by the Borough, and some financial presentations. The financial section includes the report of the independent accountants, combined financial statements, notes to combined financial statements, and the more detailed combining and individual ' financial statements and schedules. The statistical section includes selected financial and general information generally presented on a ten -year comparative basis. ' All funds and account groups of the Kodiak Island Borough are included in this financial report, as well as the component unit of the Borough, the Kodiak Island Borough School District. GENERAL INFORMATION The Kodiak Island Borough lies at the western border of the Gulf of Alaska, approximately 40 miles south of the Kenai Peninsula. Kodiak Island is the largest island in Alaska and the second largest in the United States. About two -thirds of the Borough lies in the Kodiak archipelago, the remaining third 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. 1 The Borough was incorporated September 30, 1963, as a Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. The powers granted to the Borough include area -wide powers and non area -wide powers. Area -wide powers are health, education, assessment and collection of taxes for both the Borough and cities within the Borough, planning and zoning, and general administrative services. Non area -wide powers include parks and ' recreation, economic development, solid waste disposal, and animal control. Service districts within the Kodiak Island Borough provide fire protection, road maintenance and construction, and street lighting. A Mayor/Manager form of government governs the Borough. The Mayor is elected at large while the Borough Assembly appoints the Manager. The Assembly is composed of seven members who are elected at- large. I I xii f 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 1999, 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-two 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, 280,883,189 pounds of fish were landed at the Port of Kodiak in 2000 with an exvessel value of $94,474,400. In 1999, the number of pounds landed was 326,564,340 with a value of $103,907,653. Number of pounds caught Exvessel value 2000 1999 Total for year 280,883,189 Total for year 326,564,340 Percent Ranking by Percent Ranking by Species Pounds of total $ per pound Species Pounds of total $ per pound pollock 102,229,713 36% 3 pollock 130,514,483 40% 17 pacific cod 64,936,708 23% 10 salmon 70,511,435 22% 8 salmon 61,800,000 22% 9 pacific cod 85,015,228 26% 11 rock sole 10,191,805 4% 7 halibut 9,911,645 3% 3 Total 239,158,226 85% 1 Total 295,952,791 91% Exvessel value The severance tax revenue collected for timber in fiscal year 2001 was $56,019. This decreased from fiscal year 2000's collection of $112,822. This decrease 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 U.S. shipping laws and transportation costs make it prohibitive to sell to the domestic market. The tourism industry in Kodiak is based on our natural resources and is therefore seasonal, 76% of our visitors are 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. xiii 1 i 2000 1999 Total for year $ 94,474,400 Total for year $ 103,907,653 Percent Ranking by Percent Ranking by Species Pounds of total $ per pound Species Pounds of total $ per pound pacific cod 24,030,302 25% 10 salmon 31,085,428 30% 8 halibut 23,146,998 25% 18 pacific cod 25,504,568 25% 11 salmon 21,500,000 23% 9 pollock 13,051,448 13% 17 pollock 8,720,096 9 0 /0 3 halibut 20,616,222 20% 3 Total $ 77,397,396 82% Total $ 90,257,666 87% The severance tax revenue collected for timber in fiscal year 2001 was $56,019. This decreased from fiscal year 2000's collection of $112,822. This decrease 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 U.S. shipping laws and transportation costs make it prohibitive to sell to the domestic market. The tourism industry in Kodiak is based on our natural resources and is therefore seasonal, 76% of our visitors are 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. xiii 1 i f ' 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 $42,578 in transient accommodations tax revenue. I xiv Employment ' The labor force in Kodiak is dominated by the fishing industry. Of the top ten employers in Kodiak for the year 2000, five are related to the fishing industry. In terms of employment, approximately 33% of the workforce is employed in the fish harvesting area. The U. S. Coast Guard and other government entities make up 31 %. Retail and wholesale sector have 12 %, the service sector has 15 %, with the remaining 9% 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 l i activity in the canneries and then declines in November and December when fishing quotas are reached. The unemployment rate as of June 30, 2001 was 9.7 percent compared to 12.3 percent in 2000 and 5.4 percent in 1999. Throughout fiscal year 2001, the unemployment rate has fluctuated from 3.9% to 16.5 %, with an average of 9.48 %. ' Population The estimated population of the Kodiak Island Borough for fiscal year 2001 is 14,028. Kodiak Island Borough ranks eighth 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 personnel and 1,600 military dependents. MAJOR INITIATIVES In preparing the fiscal year 2001 budget, the Kodiak Island Borough identified several major projects to be addressed during the year. All major projects are listed in Exhibit D -3 of the comprehensive annual financial report. I The most significant project undertaken in fiscal year 2001 was the design and repair of the Kodiak High School roof. The Borough completed the roof design, hired a project manager and contractor and began the repair of the roof. At year -end, the project was approximately 25% complete. The target date for completion is December 2001. Capital projects either started or expanded in fiscal year 2001 totaled $1,296,773. 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 chool District a component unit of the Kodiak Island Borough. In order to Sh � P � provide P adequate health care, the Borough has leased the Hospital and Care Center to Providence of Alaska Medical Center. Providence of Alaska also took over operating the Mental Health Center from the Borough 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 2001, 231 building permits were issued with a value of $12,881,477. The number of permits increased by twenty -one over 2000, along with the value increasing by $1,075,144. I xiv FINANCIAL INFORMATION DISCUSSION OF CONTROLS Management is extremely aware of the importance of a strong internal control structure. Although present controls are considered to be highly satisfactory and adequate, they continue to be scrutinized periodically for enhancements. Internal 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 are a ten year comparison of General Fund revenues for the fiscal years ended June 30, 1992 and June 30, 2001. These charts include General Fund revenues only. Fiscal Year 1992 Investment Licei Permits, F Oth 39 Intergovernmental 35% Property Taxes 50% Fiscal Year 2001 Investment Income 5% Licenses, Permits, Fees and Other 1% vemmental 19% Severance Taxes 8% Property Taxes 67% xv Severance Taxes 7% ' I The following schedule summarizes changes from the prior year for General Fund revenues: Revenue Sources Property Taxes Severance Taxes Intergovernmental Licenses, Permits, Fees and Other Investment Income Total * 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 increase in property tax is solely based on appraised value; there was no mill rate increase for fiscal year 2001. Severance tax revenues decreased from $1,175,650 in fiscal year 2000 to $854,233 in fiscal year 2001. The tax ' related to the fishing industry decreased by $260,144 and the severance tax on timber decreased by $17,131. The decrease in the fish tax is due to the limitations on fishing near Stellar Sea Lions habitat and lower prices being paid for fish. The increase in intergovernmental revenue is due to payments from federal and state revenue sharing sources. The most significant change was the amount received for the National Wildlife Refuge revenue. In fiscal year 2000 we received $211,782 and in fiscal year 2001 we received $399,160; an increase of $187,378. The Borough had more investment income in fiscal year 2001 due to better returns on investments and more cash to available for investing. The following charts are a ten year comparison of General Fund expenditures and operating transfers by function for the years ending June 30, 1992 and June 30, 2001: Year End June 30, 1992 Year End June 30, 2001 6% Culture and Recreation 3% / General Government 31% Community Development 4% Cuhure and General Recreation Government 1% 26% Education 49% Public Safety I 2% Health and Sanitation 9% Public Safety 1% Health and Sanitation Education 5% 63% xvl Community Increase (Decrease) 2001 2000 Amount Percent $ 7,280,951 $ 6,623,808 $ 657,143 9.9% 854,233 1,175,650 (321,417) (27.3 %) 2,135,483 1,770,040 365,443 20.6% 140,074 128,864 11,210 8.7% 583,633 358,352 225,281 62.9% $ 10,994,374 $ 10,056,714 $ 937,660 9.3% Year End June 30, 1992 Year End June 30, 2001 6% Culture and Recreation 3% / General Government 31% Community Development 4% Cuhure and General Recreation Government 1% 26% Education 49% Public Safety I 2% Health and Sanitation 9% Public Safety 1% Health and Sanitation Education 5% 63% xvl Community Changes in expenditures and operating transfers out for major General Fund functions of the Borough over the F preceding year are shown in the following tabulation: * This percentage is the change in overall totals, not the column. The decrease in public safety is due to the Borough no longer funding ambulance service paid to the City of Kodiak. A decrease in operating transfers is the primary reason for the decrease in health and sanitation. Education was increased due to the increased appropriation to the School District. Reductions in contributions to non -profit agencies ' resulted in the decrease in culture and recreation. Community Development increased due to an increase in salary expense, recruitment and relocation expense, and lower 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, 2001 was $1,419,678. This is $277,163 more than the June 30, 2000 balance of $1,142,515. 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 XV11 1992 1993 1994 1995 1998 1997 1998 1999 2000 2001 Increase (Decrease) , 2001 2000 Amount Percent General Government $ 2,783,159 $ 2,122,138 $ 661,021 31.1% r Public Safety 55,002 119,805 (64,803) (54.1 %) ' Health and Sanitation 542,072 613,873 (71,801) (11.7 %) Education 6,824,276 6,500,341 323,935 5.0% Culture and Recreation 153,481 166,630 (13,149) (7.9 %) ' Community Development 377,375 304,701 72,674 23.9% Total $ 10,735,365 $ 9,827,488 $ 907,877 9.2% * , * This percentage is the change in overall totals, not the column. The decrease in public safety is due to the Borough no longer funding ambulance service paid to the City of Kodiak. A decrease in operating transfers is the primary reason for the decrease in health and sanitation. Education was increased due to the increased appropriation to the School District. Reductions in contributions to non -profit agencies ' resulted in the decrease in culture and recreation. Community Development increased due to an increase in salary expense, recruitment and relocation expense, and lower 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, 2001 was $1,419,678. This is $277,163 more than the June 30, 2000 balance of $1,142,515. 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 XV11 1992 1993 1994 1995 1998 1997 1998 1999 2000 2001 � I PROPRIETARY OPERATIONS In fiscal year 2001, the Municipal Solid Waste Fund had operating income of $8,444, compared to last year's of $68,700. The net income for fiscal year 2001 was $89,165; this is an increase of $21,420 over last year. The main factor for the increase is the intergovernmental revenue that was received for the landfill expansion project. 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 2001 was $39,907, a $4,976 reduction from fiscal year 2000. 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 $372,732 for gain on operations, a $155,070 increase from fiscal year 2000. t 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 the Borough. The Borough, in turn, sends 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 of Kodiak, and payroll taxes, with the same care and due diligence that the Borough exercises with any of its 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. The Borough administers property tax collections for all governmental entities within the Kodiak Island Borough. For service areas within the Borough, the revenue is recog in that areas articular fund. Pr I' g � ' P 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: xviii General Obligation, 1993 $4,505,000 ' General Obligation, 1994 1,030,000 General Obligation, 1998 9,495,000 ' General Obligation, 2000 E General Obligation, 2000 F 1,485,000 1,175,000 State of Alaska, ADEC Loans 105,272 Environmental Protection Agency Loan 72,919 ' Total $17,868,191 xviii I ! 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. All of the Borough's bonds are rated at the highest level attainable. As of June 30, 2001, net per capita bonded debt is $1,236. For comparison purposes, the following is the net per capita bonded debt for the past ten years: General Bonded Debt Per Capita Last ten fiscal years $1,800 $1,600 $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. To offset this exposure the Borough requires its X1X } i 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Moody's Investors Standard Fitch's Service and Poors General Obligation, School Refunding, 1989 Aaa AAA General Obligation, 1993 Aaa AAA General Obligation, 1994 Aaa AAA General Obligation, 1998 AAA AAA General Obligation, 2000 E Aaa AAA General Obligation, 2000 F Aaa AAA As of June 30, 2001, net per capita bonded debt is $1,236. For comparison purposes, the following is the net per capita bonded debt for the past ten years: General Bonded Debt Per Capita Last ten fiscal years $1,800 $1,600 $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. To offset this exposure the Borough requires its X1X } i 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 t local servicing bank to purchase investments as collateral to cover the cash amount in the "sweep" account. The minimum amount of collateral required is $4,000,000. This collateral is purchased in the Borough's name and the ' collateral must increase if the cash balance exceeds the $4,000,000. 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, Bankers Trust Company, 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, the servicing bank pays for the instrument when it is delivered. After delivery, the servicing bank will hold and account for all investments. Management feels ' that this is the safest way of holding the Borough's 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 the Borough invest only in high -grade ' securities that are fully collateralized and/or insured. During the past year, the investments of the Borough have fluctuated between $22.7 and $35.6 million. Interest rates at the beginning of the fiscal year started at 5.85 percent to 7.23 percent. At year -end, investments were earning from ' 3.53 percent to 6.78 percent for an average yield of 5.16 percent. The year ended with investment earnings for all funds in the amount of $1,986,031. t RISK MANAGEMENT "Risk management" is a term used to describe those activities practiced by managers to minimize or control exposure to potential losses. Mention the word "risk management" and most people think of insurance, which is the traditional ' method used to manage risks. Insurance provides financial protection against accidental loss but cannot prevent losses. However, by managing exposure, we can prevent unexpected losses. The Kodiak Island Borough has increased risk management activities as a result of several factors, one being the j' 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 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. I' OTHER INFORMATION INDEPENDENT AUDIT I The Borough Code requires an annual audit to be made of the books of account, financial records, and transactions of all administrative departments of the Borough. We have complied with this requirement and the auditors' opinion has been included in this report. The Alaska Statutes require single audits and define these requirements in 2 AAC 45.010. I' The Borough also complies with the "Federal Single Audit Act of 1984" as amended b the "Single Audit Act g P g Y g 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 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, 2000. 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. I xx A Certificate of Achievement is valid for a period of one year only. The Borough has received a Certificate of Achievement for the last thirteen consecutive years (fiscal years ended 1988 - 2000). 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 eleven consecutive years (fiscal years beginning July 1, 1990 through July 1, 2000). The Borough has submitted its annual budget for the fiscal year beginning July 1, 2001, 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. ACKNOWLEDGEMENTS I wish to express my appreciation to all the members of the Finance Department for their efficient and dedicated service during the past year. I wish to thank the Mayor's 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. 4ir V� - KARLETON G. SHORT DIRECTOR OF FINANCE xxt FINANCIAL SECTION 1 Fj 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. �1 L� 1 [J I f PA T__ 701 West Eighth Avenue Suite 600 Anchorage, AK 99501 Independent Auditors' Report The Honorable Mayor and Members of the Assembly Kodiak Island Borough: We have audited the accompanying general - purpose financial statements of Kodiak Island Borough (the Borough), Alaska, as of June 30, 2001, 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 standards generally accepted in the United 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, the general - purpose financial statements referred to above present fairly, in all material respects, the financial position of the Kodiak Island Borough, Alaska, as of June 30, 2001, 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. In accordance with Government Auditing Standards, we have also issued our report dated October 19, 2001, 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. The 2001 combining and individual fund and account group financial statements and schedules listed in the 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. 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. Eggs KPMG LLP KPMG LLP, a U.S. limited liability partnership, Is a member of KPMG International, a Swiss association. KPMG The Honorable Mayor and Members of the Assembly Kodiak Island Borough The statistical data on pages 104 through 117 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. K`PMG u-P October 19, 2001 'l KODIAK ISLAND BOROUGH Combined Balance Sheet – All Fund Types, Account Groups and Discretely Presented Component Unit June 30, 2001 (with comparative totals for 2000) Assets and Other Debits Assets: Equity in central treasury Temporary investments Other cash and cash equivalents Receivables: Accounts and other receivables, net State of Alaska Federal Government Property taxes, net of allowance of $15,828 Land sales contracts, due within one year Due from other funds Due from primary government Inventories Prepaid expenses/expenditures Long -term interfund advances Land sales contracts receivable, due after one year Fixed assets, net of accumulated depreciation where applicable Construction work -in- progress 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 See accompanying notes to financial statements. Governmental Fund Tvnes $ 6,093,183 $ 23,874,975 $ 471,041 $ 3,455,196 3 Special Debt Capital General Revenue Service Projects $ 7,989 $ 1,399,733 $ 458,925 $ 245,313 4,039,690 14,358,012 12,116 2,727,987 332,891 182,060 — — 45,890 128,391 — 268,249 — 36,819 — — 331,695 — — — — 42,048 — — 1,335,028 357,912 — 213,647 — 7,370,000 — — $ 6,093,183 $ 23,874,975 $ 471,041 $ 3,455,196 3 Exhibit 1 (Continued) 4 Total Proprietary primary Component Totals Fund Type Account Groups government unit reporting entity General General long- (memorandum School (memorandum only) Enterprise fixed assets term debt only) District 2001 2000 $ 321,180 $ - $ - $ 2,433,140 $ - $ 2,433,140 $ 1,637,748 3,075,742 - - 24,213,547 - 24,213,547 14,946,489 - - - - 435,974 435,974 389,608 246,396 - - 761,347 25,590 786,937 1,041,808 100,000 - - 542,530 613,087 1,155,617 1,238,657 - - - 36,819 154,609 191,428 214,501 - - - 331,695 - 331,695 284,871 - - - 42,048 - 42,048 58,364 - - - 1,906,587 745,386 2,651,973 3,711,029 - - - - 4,017,798 4,017,798 2,463,504 277,007 - - 277,007 264,073 541,080 501,217 - - - - - - 8,164 - - - 7,370,000 - 7,370,000 7,595,000 - - - - - - 84,151 46,865,148 101,321,150 - 148,186,298 4,122,886 152,309,184 152,214,524 - - - - - - 1,941,032 - - 1,350,000 1,350,000 6,500 1,356,500 1,396,500 - - 458,925 458,925 - 458,925 404,657 - - 17,523,249 17,523,249 - 17,523,249 16,951,370 $ 50,885,473 $ 101,321,150 $ 19,332,174 $ 205,433,192 $ 10,385,903 $ 215,819,095 $ 207,083,194 (Continued) 4 1 1� KODIAK ISLAND BOROUGH Combined Balance Sheet – All Fund Types, Account Groups and Discretely Presented Component Unit June 30, 2001 (with comparative totals for 2000) C i Governmental Fund Types Liabilities, Fund Equities Special Debt Capital and Other Credits General Revenue Service Projects , Liabilities: 3 Accounts payable $ 108,598 $ 119,651 $ 12,116 $ 407,107 Retainages payable — — — 48,181 i Accrued compensation, annual leave, , 5 payroll taxes and related benefits 41,199 283 Other accrued liabilities 270,243 — — = _ — Customer deposits 525 Deferred revenues — 42,048 — — Claims and judgements — — — — Due to City of Kodiak 22,022 — — — Due to component units 4,017,798 — — — Due to other funds 213,645 338,188 — 152,914 ' Due to student organizations — — — — Current portion of note payable — — — — Current portion of capital lease obligations — — — — Accrual for landfill closure ' and postclosure costs — — — — Note payable — — — — Capital lease obligations — — — — Long -term interfund borrowings -- — — — General obligation bonds payable — — — — Environmental Protection Agency loan — — — — Alaska Department of Environmental Conservation loans — — ' e Total liabilities 4,673,505 500,695 12,116 608,202 Fund equities and other credits: Contributions in aid of construction, net — — — — ' f Investment in general fixed assets — — — — i Contributed capital — — — — Retained earnings (accumulated deficit) — — — — 6 1 Fund balances: ' Reserved: Encumbrances — — — 2,137,930 Fuel inventory — — — — Long -term interfund borrowings — 7,370,000 — — , Unreserved: Designated for subsequent year expenditures — 178,800 — — Undesignated 1,419,678 15,825,480 458,925 709,064 ' s Total fund equities and other credits 1,419,678 23,374,280 458,925 2,846,994 Total $ 6,093,183 $ 23,874,975 $ 471,041 $ 3,455,196 t See accompanying notes to financial statements. 5 ' i Exhibit 1 (Continued) 1� 1 G Total 1 Proprietary primary Component Totals Fund Type Account Groups government unit reporting entity General General long- (memorandum School (memorandum only) ' Enterprise fixed assets term debt only) District 2001 2000 $ 184,806 $ - $ - $ 832,278 $ 232,082 $ 1,064,360 $ 681,508 ' _ - 48,181 - 48,181 82,457 _ 113,983 155,465 2,365,807 2,521,272 2,420,941 68,208 - - 338,451 - 338,451 51,262 I = _ = 525 42,048 - 152,991 525 195,039 650 596,609 1,350,000 1,350,000 46,500 1,396,500 1,436,500 - - - 22,022 - 22,022 21,879 ' 1,201,840 _ = 4,017,798 1,906,587 - 745,386 4,017,798 2,651,973 2,528,819 3,711,027 338,868 338,868 307,731 629,656 - - 629,656 - 629,656 592,013 ' 277,720 277,720 = 277,720 261,984 2,122,151 - - 2,122,151 2,122,151 2,066,758 1,901,494 - - 1,901,494 - 1,901,494 2,231,467 797,306 - 797,306 - 797,306 1,074,993 7,370,000 = 7,370,000 7,370,000 7,595,000 17,690,000 17,690,000 17,690,000 17,025,000 - - 72,919 72,919 - 72,919 93,749 - - 105,272 105,272 - 105,272 105,272 14,553,181 - 19,332,174 39,679,873 3,881,634 43,561,507 42,885,619 30,340,822 - - 30,340,822 - 30,340,822 31,389,118 101,321,150 101,321,150 4,122,886 105,444,036 105,458,894 5,382,203 - - 5,382,203 - 5,382,203 5,382,203 609,267 - - 609,267 - 609,267 321,418 - - - 2,137,930 165,711 2,303,641 188,708 - 226,629 226,629 208,449 7,370,000 7,370,000 7,595,000 _ _ = 178,800 807,154 985,954 423,550 ' 18,413,147 1,181,889 19,595,036 13,230,235 36,332,292 101,321,150 - 165,753,319 6,504,269 172,257,588 164,197,575 ' $ 50,885,473 $ 101,321,150 $ 19,332,174 $ 205,433,192 $ 10,385,903 $ 215,819,095 $ 207,083,194 1� 1 G 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, 2001 (with comparative totals for 2000) Special Debt Capital General Revenue Service Projects Revenues: Property taxes $ 7,280,951 $ 578,661 $ - $ - Intergovemmental: State sources 1,262,555 666,878 - 388,741 ' Federalsources 872,928 40,792 - - Land sale proceeds - 4,112,128 - - Severance taxes 854,233 - - - licenses, permits, fees and other local revenues 140,074 132,382 - - , Investments and property 583,633 1,211,456 24,718 89,551 In -kind services - - Other - 12,849 - Total revenues 10,994,374 6,755,146 24,718 478,292 Expenditures: Current: Borough assembly 137,000 - - - Borough manager 159,275 - - - Borough clerk 263,191 - - - ' Borough attorney 435,337 - - - Finance department 389,583 - - - Assessing department 288,958 - - - EngineeringtFacilities department 85,310 - - - Community development department 377,374 66,357 - - Building official 129,908 - - - Economic development 38,000 - - - General and administration Emergency preparedness 239,408 3,002 1,216,323 - 19,792 - - - E School district support 594,246 - - - Health and sanitation department 223,422 463,388 - - Education, culture and recreation 148,351 - - - Management information systems 293,891 Capital outlay: Schools - - - 671,985 Service district maintenance - 14,306 - - General - - - 624,788 Debt service: Principal - - 2,015,834 - ' Interest - - 745,493 - Fiscal agent fees - - - - Total expenditures 3,806,256 1,760,374 2,781,119 1,296,773 g. Excess of revenue over (under) expenditures 7,188,118 4,994,772 (2,756,401) (818,481) Other financing (uses) sources: Operating transfers in from component unit - - 1,634,092 - Operating transfers in from other funds 18,154 657,309 1,195,585 301,746 Operating transfers in from primary government - - - - Operating transfers out to component unit (5,966,440) - - Operating transfers out to other funds (639,370) (798,061) (19,008) - Operating transfers out to primary government - - - - Proceeds from issuance of long -term debt - - - 2,677,871 ' Net other financing (uses) sources (6,587,656) (130,752) 2,810,669 2,979,617 Excess of revenues and other financing sources over expenditures and other financing uses 600,462 4,864,020 54,268 2,161,136 Fund balances, at beginning of year 1,142,515 18,186,961 404,657 685,858 Residual equity transfers in (out) (323,299) 323,299 - - Adjustments to reserve for fuel inventory - - - - Fund balances, at end of year $ 1,419,678 $ 23,374,280 $ 458,925 $ 2,846,994 ' See accompanying notes to financial statements. � ' i Exhibit 2 (928,122) 4,332,348 3,404,226 549,763 ' 7,679,886 1,143,363 8,823,249 4,996,710 20,419,991 1,225,951 21,645,942 16,230,229 - - - 404,839 - 12,069 12,069 14,164 $ 28,099,877 $ 2,381,383 $ 30,481,260 $ 21,645,942 1 a Total primary Component government unit Totals - reporting entity (memorandum School (memorandum only) only) District 2001 2000 $ 7,859,612 $ - $ 7,859,612 $ 7,111,661 I 2,318,174 17,051,065 19,369,239 19,056,744 913,720 4,476,280 5,390,000 4,480,314 4,112,128 - 4,112,128 4,319,461 854,233 272,456 - 608,587 854,233 881,043 1,175,650 827,981 1,909,358 1,909,358 1,150,012 - 683,261 683,261 774,452 12,849 - 12,849 6,623 18,252,530 22,819,193 41,071,723 38,902,898 137,000 - 137,000 140,397 159,275 - 159,275 187,047 ' 263,191 263,191 226,573 435,337 435,337 197,868 389,583 - 389,583 369,652 288,958 - 288,958 279,320 85,310 - 85,310 443,731 - 443,731 368,300 129,908 - 129,908 120,472 38,000 - 38,000 37,755 1,475,523 - 1,475,523 1,536,123 1 3,002 3,002 2,791 594,246 26,008,178 26,602,424 26,613,152 686,810 - 686,810 758,138 148,351 - 148,351 161,500 ' 293,891 - 293,891 329,266 671,985 671,985 5,487 14,306 - 14,306 213,485 624,788 - 624,788 144,628 2,015,834 - 2,015,834 1,905,834 745,493 - 745,493 855,916 - - 2,247 9,644,522 26,008,178 35,652,700 34,455,951 8,608,008 (3,188,985) 5,419,023. 4,446,947 1,634,092 - 1,634,092 1,621,398 2,172,794 164,105 2,336,899 2,159,838 5,966,440 5,966,440 5,556,310 (5,966,440) - (5,966,440) (5,556,310) (1,446,439) (164,105) (1,610,544) (1,610,075) - (1,634,092) (1,634,092) (1,621,398) . 2,677,871 2,677,871 (928,122) 4,332,348 3,404,226 549,763 ' 7,679,886 1,143,363 8,823,249 4,996,710 20,419,991 1,225,951 21,645,942 16,230,229 - - - 404,839 - 12,069 12,069 14,164 $ 28,099,877 $ 2,381,383 $ 30,481,260 $ 21,645,942 1 a KODIAK ISLAND BOROUGH Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual General Fund, Special Revenue Fund and Debt Service Fund Year Ended June 30, 2001 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 Engineering/Facilities 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 Total expenditures Excess of revenue over (under) expenditures Other financing (uses) sources: Operating transfers in from component unit Operating transfers in from other funds Operating transfers to component unit Operating transfers out to other funds Net other financing (uses) sources Excess of revenues and other financing sources over (under) expenditures and other financing uses Fund balances, at beginning of year Residual equity transfer out Fund balances, at end of the year See accompanying notes to financial statements. General Fund Variance- favorable Budget Actual (unfavorable) $ 7,254,870 $ 7,280,951 $ 26,081 1,234,896 1,262,555 27,659 800,200 872,928 72,728 955,620 854,233 (101,387) 101,290 140,074 38,784 260,600 583,633 323,033 10,607,476 10,994,374 386,898 142,000 137,000 5,000 175,990 159,275 16,715 270,450 263,191 7,259 361,000 435,337 (74,337) 381,680 389,583 (7,903) 307,460 288,958 18,502 131,700 85,310 46,390 400,280 377,374 22,906 112,500 129,908 (17,408) 49,000 38,000 11,000 284,290 239,408 44,882 5,500 3,002 2,498 589,990 594,246 (4,256) 285,732 223,422 62,310 155,784 148,351 7,433 395,060 293,891 101,169 4,048,416 3,806,256 242,160 6,559,060 7,188,118 629,058 - 18,154 18,154 (5,966,440) (5,966,440) - (648,370) (639,370) 9 (6,614,810) (6,587,656) 27,154 $ (55,750) 600,462 $ 656,212 1,142,515 (323,299) $ 1,419,678 9 k g 6 i Exhibit 3 Special Revenue Funds Debt Service Funds Variance- Variance - favorable favorable Budget Actual (unfavorable) Budget Actual (unfavorable) $ 534,570 $ 578,661 $ 44,091 $ - $ - $ - 714,079 666,878 (47,201) - - - 107,783 40,792 (66,991) - - - 4,110,800 4,112,128 1,328 - - - 184,420 132,382 (52,038) - - - - 12,849 12,849 - - - 1,758,808 1,211,456 (547,352) - 24,718 24,718 7,410,460 6,755,146 (655,314) - 24,718 24,718 68,840 66,357 2,483 - - - 5,901,615 1,216,323 4,685,292 53,400 19,792 33,608 540,049 463,388 76,661 - - - 342,244 14,306 327,938 - - - - - - 2,015,840 2,015,834 6 - - - 770,500 745,493 25,007 6,852,748 1,760,374 5,092,374 2,839,740 2,781,119 58,621 557,712 4,994,772 4,437,060 (2,839,740) (2,756,401) 83,339 - - - 1,636,140 1,634,092 (2,048) 121,130 657,309 536,179 1,203,600 1,195,585 (8,015) (787,076) (788,061) (985) - (19,008) (19,008) (665,946) (130,752) 535,194 2,839,740 2,810,669 (29,071) $ (108,234) 4,864,020 $ 4,972,254 $ - 54,268 $ 54,268 18,186,961 404,657 323,299 - $ 23,374,280 $ 458,925 10 Exhibit 4 KODIAK ISLAND BOROUGH Combined Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings (Accumulated Deficits) Proprietary Fund Types Year Ended June 30, 2001 (with comparative totals for 2000) Enterprise 2001 2000 Operating revenues: Solid waste collection $ 1,718,904 $ 1,697,403 Solid waste disposal 889,885 975,557 State sources - revenue sharing 39,907 44,883 Charges for services /customer charges 69,078 63,695 Lease proceeds 2,204,927 2,214,342 Other 487,698 354,557 5,410,399 5,350,437 Operating expenses: Personnel services 533,442 465,852 Solid waste collection 1,250,607 1,176,729 Refuse disposal 297,992 298,831 Contracted services 356,220 349,613 Repairs and maintenance 377,610 308,056 Landfill closure and postclosure costs 57,115 128,623 Depreciation 2,018,632 2,119,851 Support goods and services 802 3,359 General and administration 229,608 240,606 Medicaid refund - 27,494 Telephone services - 35,909 Recycling services 67,680 64,900 Contributions 2,844 8,801 5,192,552 5,228,624 Operating income 217,847 121,813 Other income (expenses): Intergovernmental revenue 69,838 - Loss on disposal of fixed assets (226,761) (8,669) Investment income 76,673 91,984 Interest expense (171,689) (249,089) Net loss from continuing operations (34,092) (43,961) Transfer to other funds: Operating transfers out to other funds (726,355) (549,763) Net operating transfers (726,355) (549,763) Amortization of contributions in aid of construction 1,048,296 1,048,299 Increase in retained earnings 287,849 454,575 Accumulated deficits at beginning of year (97,451) (779,624) Net effect of residual equity transfer - 227,598 Retained earnings (accumulated deficits), at end of year $ 190,398 $ (97,451) See accompanying notes to financial statements. 11 Exhibit 5 KODIAK ISLAND BOROUGH Combined Statement of Cash Flows Proprietary Fund Types Year Ended June 30, 2001 (with comparative totals for 2000) Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Loss on disposal of fixed assets Changes in assets and liabilities that provided (used) cash: Accounts receivable: Customers Inventories Due to /from other funds Accounts payable Deferred revenues Accrual for landfill closure and postclosure costs 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 Net cash provided by noncapital financing activities Enterprise 2001 2000 $ 217,847 $ 121,813 2,018,632 2,119,851 — 8,669 266,754 814,484 (113,086) 55,393 16,946 (266,877) (2) (344,506) 56,057 (60,000) 127,358 472 3,059,123 1,641,022 3,276,970 1,762,835 (726,355) (549,763) (726,355) (549,763) (Continued) 12 Exhibit 5 (Continued) KODIAK ISLAND BOROUGH Combined Statement of Cash Flows Proprietary Fund Types Year Ended June 30, 2001 (with comparative totals for 2000) 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 assets whose use is limited: Deductions from (additions to) restricted cash 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 the end of year Noncash capital and related financing activities: Loss on disposal of fixed assets Noncash noncapital financing activities: Residual equity transfers See accompanying notes to financial statements. Enterprise 2001 2000 $ (491,697) $ (898,109) (171,689) (223,438) (210,000) (195,000) 299,686 513,249 (592,016) (556,625) (261,951) (308,401) — 265,662 (1,427,667) (1,402,662) — 218,013 85,637 81,065 (1,220,596) 223,603 (1,134,959) 522,681 (12,011) 333,091 333,191 100 $ 321,180 $ 333,191 $ 226,761 $ $ 226,761 (69,157) $ (69,157) f 13 i KODIAK ISLAND BOROUGH Notes to Financial Statements June 30, 2001 (1) Summary of Significant Accounting Policies (a) Reporting 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. The Borough levies and collects taxes for the School District. ' Complete financial statements for the component unit may be obtained at the entity's administrative offices for the Kodiak Island Borough School District. Kodiak Island Borough School District ' 722 Mill Bay Road Kodiak, Alaska 99615 Total columns on the combined statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with accounting principles generally ' accepted in the United States of America. Nor are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of these data. Reclassification Certain 2000 balances have been reclassified to conform to the current year presentation. ' (b) Measurement Focus, Basis of Accounting, and Basis of Presentation The accounts of the Borough are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self - balancing set of 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. 14 The Borough has the following fund types and account groups: Governmental funds are used to account for the Borough's general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when "measurable and available "). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The Borough considers all revenues available if they are collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long- term debt that is recognized when due, and certain compensated absences and claims and judgments that are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes, franchise taxes, severance taxes, licenses, interest and special assessments are susceptible to accrual. Other receipts and taxes become measurable and available when cash is received by the Borough and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt, or earlier if the susceptible to accrual criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Governmental funds include the following fund types: The general fund is the Borough's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Special revenue funds account for revenue sources that are legally restricted to expenditure for specific purposes, not including expendable trusts or major capital projects. Debt service funds account for the servicing of general long -term debt not being financed by proprietary or nonexpendable trust funds. Capital projects funds account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary or nonexpendable trust funds. Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned, and expenses are recorded at the time liabilities are incurred. The Borough has elected to follow all 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. 15 J L ' 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 15th. Tax bills are then mailed on or before July 1st. Taxes are due when billed and generally become delinquent on or after October 15th. The Borough ' code also provides for split payments. If a taxpayer avails himself of this provision, one -half must be paid on or before August 15th and the remainder becomes due on or before November 15th (in lieu of October 15th). Borough property tax revenues are recognized in the fiscal year in which they ' become measurable and available, which is generally the year following the year the tax bills are mailed. All taxes are delinquent on November 16th, and a tax foreclosure process may commence as outlined in Alaska Statutes Title 29. Briefly, this entails the petition for Judgment of Foreclosure signed by the District Court Judge and the publication of all delinquent taxes in the local newspaper for four consecutive weeks. Real property tax liens are enforced by one general foreclosure proceeding against the delinquent properties. Severance Taxes Severance taxes are based on the amount and value of natural resources severed from the environment. Types of resources taxed include seafood, gravel and mineral resources, and timber. Severance tax 'returns are sent to appropriate companies (as determined by the Borough Assessor) and are returned to the Borough Finance Department. The returns are filed quarterly, and are due by the end of the month following the quarter's end. Borough severance tax revenues are recognized in the fiscal year in which they become measurable and available. Intergovernmental Revenue State - shared revenues, municipal assistance, State - education related entitlement programs and State - levied taxes, the proceeds of which are distributed to local governments, are recorded in the fiscal year to which they relate, including accrual at year end if final payments due are measurable and received within approximately two months after year end. State of Alaska and Federal government cost reimbursable grants and contracts are recorded to the extent of allowable expenditures in the period in which the expenditures were incurred. Revenue from Investments and Property Amounts earned on investment of available cash balances and the rental of building facilities are recorded in the period to which they relate, including accrual at year end of the balance due, 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. 16 (c) Budgets and Budgetary Accounting Borough The Borough follows these procedures in establishing the budgetary data reflected in the combined financial statements: • The Borough Manager must submit to the Borough Assembly by April 30 a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. • Public hearings are conducted by the Borough Assembly to obtain citizen comments. • 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. • 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: All new appropriations are authorized by an appropriation ordinance that amends the annual budget ordinance. A resolution of the Borough Assembly is required to move (appropriate) amounts between departments and projects. 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. • Expenditures may not legally exceed appropriations at the following levels: Capital Projects Funds - project level, all other funds — department level. • 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. • 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. • Budgets adopted by the Borough Assembly are in accordance with accounting principles generally accepted in the United States of America. • Additional appropriations for certain funds were enacted during the year. The majority of these appropriations reflect increases and decreases in actual grant awards along with the inclusion of 2000 Series bond issuances. Supplemental appropriations amounted to approximately $469,000 for the general fund and $691,000 for the special revenues funds. 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 17 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. (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, 2001 there are no significant amounts of such inventories on hand. The Hospital Enterprise Fund also has at June 30, 2001, 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. ' 18 (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 accounting principles generally accepted in the United States of America 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. (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. At June 30, 2001, the carrying amount of the Borough and its Component Unit deposits was $2,432,390 and the corresponding bank balance was $2,962,338. The year -end bank balances are both insured by the Federal Deposit Insurance Corporation and collateralized by Government and Agency Obligations and General Obligation Bonds of a Municipality. Collateral, in the amount of $4,000,000, is held by Bankers Trust Company, the pledging financial institution's 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. 19 C 1 11 n ' 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 counter party'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 counter party, 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, 2001, the Borough's investment balances were categorized as follows: Category Carrying 1 2 3 amount Investments — categorized: U.S. Government Securities $ 19,010,182 $ — $ — $ 19,010,182 Investments — not categorized: Alaska Municipal League Investment Pool 5,203,365 Total Investments $ 24,213,547 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 manager. The manager is required to produce monthly disclosure statements to the pool. The pool has also 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, 2001 the fair value of the investment in the pool approximates the fair value of the pool shares. The above bank deposits of $2,432,390, investments of $24,213,547 plus cash on hand of $750 totaling $26,646,687 are reported under the following captions in the combined financial statements: Equity in central treasury cash $ 2,433,140 Temporary investments 24,213,547 Total deposits and investments $ 26,646,687 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. 20 (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. (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. State of Alaska Department of Administration Division of Retirement Benefits P.O. Box 11 -0203 Juneau, Alaska 99811 -0203 (a) PERS Plan description: All regular employees of the Borough who work more than fifteen hours per week participate in 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 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 postemployment healthcare 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 2.82 percent of annual covered payroll. Annual pension cost: For the year ended June 30, 2001, the Borough's annual pension cost was $69,805 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, 1999. 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 21 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 ' Postem P loyment healthcare benefits: Postemployment healthcare benefits are provided without cost to all employees first hired before July 1, 1986, and employees who are disabled or age sixty -five or older, regardless of initial hire dates. Employees first hired after June 30, 1986, with five years of credited service (or ten years of credited service for those first hired after July 1, 1996) may receive postemployment healthcare benefits prior to age sixty by paying the full monthly premium, and by paying half of the monthly premium if they are between the ages of sixty and sixty -five. The actuarially required and actual contributions for postemployment healthcare benefits for the year ended June 30, 2001 was $27,146. The amount of net assets available for postemployment healthcare benefits, the actuarial accrued liability and funded excess are $4,009,000, $3,460,000 and $549,000, respectively. 1 (b) Component Unit Retirement Commitments The following is a summary of selected information on the component unit's retirement ' commitments. Complete pension disclosures are presented in the component unit financial statements. ' School District participation in PERS, a defined benefit agent multiple - employer plan, is separate from the Borough's participation. Benefits are the same as described for the Borough's participation. For the years ended June 30, 2001, 2000, and 1999, the School District's annual pension and postemployment healthcare cost was $323,991, $271,733, and $176,670 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. i 22 Annual Percentage of pension cost APC Net pension Year ended (APC) contributed obligation 6/30/1999 $ 133,656 100% $ _ ' 6/30/2000 105,205 100% 6/30/2001 69,805 100% — ' Postem P loyment healthcare benefits: Postemployment healthcare benefits are provided without cost to all employees first hired before July 1, 1986, and employees who are disabled or age sixty -five or older, regardless of initial hire dates. Employees first hired after June 30, 1986, with five years of credited service (or ten years of credited service for those first hired after July 1, 1996) may receive postemployment healthcare benefits prior to age sixty by paying the full monthly premium, and by paying half of the monthly premium if they are between the ages of sixty and sixty -five. The actuarially required and actual contributions for postemployment healthcare benefits for the year ended June 30, 2001 was $27,146. The amount of net assets available for postemployment healthcare benefits, the actuarial accrued liability and funded excess are $4,009,000, $3,460,000 and $549,000, respectively. 1 (b) Component Unit Retirement Commitments The following is a summary of selected information on the component unit's retirement ' commitments. Complete pension disclosures are presented in the component unit financial statements. ' School District participation in PERS, a defined benefit agent multiple - employer plan, is separate from the Borough's participation. Benefits are the same as described for the Borough's participation. For the years ended June 30, 2001, 2000, and 1999, the School District's annual pension and postemployment healthcare cost was $323,991, $271,733, and $176,670 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. i 22 l 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, 2001, 2000, and 1999, the School District's annual pension cost was $1,345,263, $1,391,110, and $1,600,327, which was equal to the required and actual contribution. (c) Required Supplementary Information Schedule of Funding Progress for PERS (Dollar amounts in thousands for the primary government only) (5) Fixed Assets A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 2001 follows: Government July 1, 2000 Additions Deductions June 30, 2001 Land $ 5,434,991 $ — $ 72,804 $ 5,362,188 Buildings 88,811,586 — Funding 88,783,292 Improvements other than buildings Actuarial 30,100 3,700,998 Machinery and equipment excess as a 687,745 Actuarial accrued Funding 20 2,357,374 percentage Actuarial value of liability Excess Funded Covered of covered valuation assets (AAL) (FE) ratio payroll 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% (5) Fixed Assets A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 2001 follows: Government July 1, 2000 Additions Deductions June 30, 2001 Land $ 5,434,991 $ — $ 72,804 $ 5,362,188 Buildings 88,811,586 — 28,294 88,783,292 Improvements other than buildings 3,731,098 — 30,100 3,700,998 Machinery and equipment 1,790,739 14,305 687,745 1,117,298 Construction work -in- progress 1,683,416 673,978 20 2,357,374 $ 101,451,830 $ 688,283 $ 818,963 $ 101,321,150 Assets in the General Fixed Assets Account Group are not depreciated. 23 i i � I An expenditure qualifies for capitalization as a fixed asset if the total cost is $5,000 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. � I � I I I � I � I I I 1 24 ' The following is a summary of Proprietary Fund fixed assets at June 30, 2001: Enterprise funds Unclassified utility plant in service $ 2,200,347 Land and improvements 1,423,044 ' Building and improvements 43,971,443 Equipment 6,794,194 Construction work -in process 2,231,804 56,620,832 Less: accumulated depreciation (9,755,684) ' Net fixed assets $ 46,865,148 ' 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 $5,000 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. � I � I I I � I � I I I 1 24 (6) Long Term Debt = .. 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 amount 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 The following is a summary of long -term debt for the year ended June 30,2001: of each individual disbursement of loan proceeds to Interest Principal Payments Issue Maturity Type of Debt Rates Dates Date Dates Dates Amount Environmental Protection Agency Asbestos Abatement Loan 0.0% ' - 06/20/1985 12/31/2004 12/31/2001 $ 10,417 06130 and 12/31 - 2002 thru 2004 6 x 10,417 72,919 General Obligation Bonds - 1993 Series 3.90- 7.00% 8/15 -2/15 11/15/1993 02/15/2006 02/15/2002 825,000 02/15/2003 860,000 02115/2004 900,000 02/15/2005 940,000 02/15/2006 980,000 4,505,000 General Obligation Bonds - 1994 Series 5.40 -5.50% 02/15/2007 11/15/1993 02/15/2007 02/1512007 1,030,000 General Obligation Bonds - 1998 Series 3.25- 4.30% 8/15 -2/15 12/22/1998 02/15/2014 02/15/2002 50,000 02/15/2003 50,000 02/15/2004 55,000 02115/2005 55,000 O2JI512006 60,000 02/15/2007 60,000 02/15/2008 1,150,000 02/15/2009 1,200,000 02/15/2010 1,250,000 02/15/2011 1,305,000 02115/2012 1,360,000 02115/2013 1,420,000 02/15/2014 1,480,000 9,495,000 General Obligation Bonds - 2000ESeries 4.75 -5.0% 8/1 -2/1 12/12/2000 02102/2011 02/01/2002 120,000 02/01/2003 125,000 02/01/2A04 130,000 02/01/2005 135,000 02/01/2006 145,000 02/01/2007 150,000 02/01/2008 160,000 02101/2009 165,000 02/01/2010 175,000 02/01/2011 180,000 1,485,000 General Obligation Bonds - 2000FSeries 6.9 -9.0% 8/1 -2/1 12/12/2000 02/01/2011 02./01/2002 80,000 02./01/2003 85,000 02. /01/2004 95,000 02J01/2005 105,000 02. /01/2006 110,000 02./01/2007 120,000 02J01/2008 130,000 02JO1/2009 140,000 02JOI /2010 150,000 02J0112011 160,000 1,175,000 Accrued annual leave 0.0% 113,983 Judgment payable ( see note 18) 1,350,000 State of Alaska ADEC loans Clean Water - Karluk 3.92 -4.05% '* " "" "' 105,272 $ 19,332,174 1 t ' Interest free unless delinquent, the 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 amount 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. ) 25 Authorized Prior Years Current Year Fiscal Balance at Retired/ Balance at Year Amount Issued Retired July 1, 2000 Issued Refunded June 30,2001 $ $ $ $ $ $ $ 1985 375,000 375,000 281,251 93,749 — 20,830 72,919 1994 9,215,000 9,215,000 3,920,000 5,295,000 — 1994 9,985,000 9,985,000 8,955,000 1,030,000 — 1999 9,740,000 — 195,000 9,545,000 — 2001 1,485,000 1,485,000 — — 1,485,000 790,000 4,505,000 — 1,030,000 50,000 9,495,000 1,485,000 2001 1,175,000 1,175,000 — — 1,175,000 — 1,175,000 2001 — — — 132,006 1,418 19,441 113,983 — — — 1,350,000 — — 1,350,000 1998 400,000 105,272 105,272 105,272 $ 32,375,000 $ 22,340,272 $ 13,351,251 $ 17,551,027 $ 2,661,418 $ 880,271 $ 19,332,174 26 I ! The annual requirements to amortize all general obligation bonded debt and the EPA loan payable outstanding as of June 30, 2001, including interest payments of $6,004,920 on the general obligation debt, are as follows: Year ending General EPA Loan June 30: obligation payables Total 2002 $ 1,940,659 $ 20,834 $ 1,961,493 2003 1,900,993 20,834 1,921,827 2004 1,907,690 20,834 1,928,524 2005 1,904,815 10,417 1,915,232 2006 1,902,785 — 1,902,785 Thereafter 14,137,978 — 14,137,978 13,322,225 $ 23,694,920 $ 72,919 $ 23,767,839 The amount of $344,942 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 Investments in securities and current obligations of defeased bonds are not reflected in the combined financial statements. A summary of the investments held in trust and the current obligations of defeased bonds at June 30, 2001 are summarized as follows: Bond principal outstanding Series 1994 Government Obligation bonds, 5.4% to 5.5 %, due in installments to 2007 $ 8,955,000 $ (1) Alaska USA Trust Co. as trustee (7) Long -Term Interfund Borrowings Investments held in trust 8,403,769 (') 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: Year ending June 30: 2002 2003 2004 2005 2006 Thereafter Principal Interest Total $ 225,000 $ 523,775 $ 748,775 ' 240,000 507,500 747,500 255,000 490,175 745,175 275,000 471,625 746,625 290,000 451,850 741,850 6,310,000 3,282,300 9,592,300 $ 7,595,000 $ 5,727,225 $ 13,322,225 , 27 f (8) Capital Lease Obligations 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, 2001, is approximately $1,443,095. Accumulated amortization on the leased equipment is approximately $368,069 at June 30, 2001. The minimum required lease payments under the capital leases for the next four fiscal years ended are as follows: ' Year ending June 30: 2002 $ 333,336 2003 333,336 2004 333,336 ' 2005 194,447 ' Less amount representing interest (119,429) $ 1,075,026 ' Note Payable (9) As of June 30, 2001, 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 1 of 6.4 %); secured by equipment $ 1,299,346 Note payable to Alaska Department of Environmental Conservation (ADEC), to be paid within 20 years at 3.8% interest, terms to be ' negotiated with the first loan payment due one year following substantial completion and initiation of operation of the facility 1,231,804 ' 2,531,150 Less current portion of note payable 629,656 $ 1,901,494 Future required minimum principal payments at June 30, 2001 excluding payments to the ADEC for the fiscal years ended are as follows: Year ending June 30: 2002 2003 $ 629,656 669,690 $ 1,299,346 28 f i f i (10) Capital Project Funds Construction Commitments , A summary of Capital Projects Funds construction commitments at June 30, 2001 follows: Various Borough Projects $ 2,076,349 ' State Capital Grants 61,581 $ 2,137,930 Resources are presently available or committed to finance construction commitments at June 30, 2001, for all funds, inclusive of those resources appropriated at year -end. (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, 2001, for those funds are as follows: (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, 2001, was $67,940. 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. f 29 , Municipal Kodiak solid waste fisheries collection and Hospital research disposal Facilities 911 Services center Total Operating revenues $ 2,620,355 $ 1,236,039 $ 69,078 $ 1,484,927 $ 5,410,399 Depreciation 93,714 1,180,918 — 744,000 2,018,632 Operating income 8,444 55,121 39,078 115,204 217,847 Intergovernmental revenue 69,838 — — — 69,838 Operating transfers in (out) — (191,030) — (535,325) (726,355) Net income (loss) 89,165 (290,259) 39,078 127,924 (34,092) Amortization of contributions in aid of construction 52,408 598,537 — 397,351 1,048,296 Property, plant and equipment additions (deletions), net 256,086 (772,120) — (24,159) (540,193) Net working capital 856,695 (191,648) 70,522 922,526 1,658,095 Total assets 5,364,606 24,861,399 70,522 20,588,946 50,885,473 Bonds and other long -term liabilities Payable from operating revenue 3,353,955 1,466,996 — — 4,820,951 Payable from other sources — — — 7,370,000 7,370,000 Total equity 1,709,540 22,487,027 70,522 12,065,203 36,332,292 (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, 2001, was $67,940. 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. f 29 , I ' (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 Kodiak Island Borough Finance Director is a member of the Board of Directors of the JIA. The responsibilities of both JIA and the participants are as follows: Responsibilities of JIA ' JIA shall perform the following instructions in discharging its responsibilities: • 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; 1 and time element. • Assist each participant's assigned risk manager with the implementation of that function. • Provide loss prevention and safety and consulting services to participants as required. • Proved claims adjusting. and subrogation services for claims covered by the association's joint insurance arrangement. ' Responsibilities of the Participants The Participant's shall have the following responsibilities: • 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. • 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. • 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 E control policy to prevent unsafe practices. • Each participant shall maintain its own set of records as a loss log, in all categories of loss to insure accuracy of JIA's loss reporting system. 11 30 I ; (14) Individual Fund Disclosures Interfund Receivables and Payables A summary of interfund receivables and payables at June 30, 2001, is as follows: General Fund Special Revenue Funds: Child Care Assistance Program Welfare to Work Building and Grounds Coastal Management L.E.P.C. Facilities Fund Capital Project Funds: Various Borough Projects State Capital Grants Enterprise Funds: Municipal Solid Waste Collection and Disposal Kodiak Fisheries Research Center Component units: School District Receivable Payable $ 1,335,028 $ 4,231,443 — 28,130 — 35,272 — 242,033 — 13,513 — 19,240 7,727,912 — 213,647 17,587 — 135,327 — 100,000 8,471,840 4,017,798 — $ 13,294,385 $ 13,294,385 The Kodiak Fisheries Research Center Enterprise Fund borrowed $8 million from the Facilities Special Revenue Fund. As of June 30, 2001, the outstanding principal amount owing was $7,595,000. See note 7 for additional information regarding the interfund borrowings. Fund Deficits and Accumulated Deficits: The fund deficits and accumulated deficits at June 30, 2001, are as follows: Special Revenue Funds: Coastal Management $ 147 Buildings and Grounds 247,747 Enterprise Fund: Municipal Solid Waste Collection and Disposal 746,403 $ 994,297 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. Operating Transfers Interfund operating transfers and transfers from the component unit have been made in accordance with budget ordinances. 31 I � I � 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, 2001, were as follows: Residual Equity Transfers Effective July 1, 2000, the operations of the Mental Health Center Special Revenue Fund were transferred to the General Fund. Accordingly, all assets and liabilities, including a fund deficit of $323,299, were transferred as of July 1, 2000. The transfer of net assets out of the Mental Health Special Revenue Fund and into the General Fund are shown as a residual equity transfer. Excess of Expenditures /Expenses Over Appropriations /Budgets General Fund The following department expenditures exceeded their appropriations: Department Excess Borough attorney $ 74,337 Finance department 7,903 School district support 4,256 Building official 17,408 $ 103,904 Special Revenue Funds The following funds' expenditures exceeded their appropriations: Fund Excess Coastal management $ 2,500 Kodiak Arts Council 828 $ 3,328 32 Transfers In Special Capital School district Transfers General revenue Debt service projects component Out fund funds funds funds units Fund Tvces General Fund $ 6,605,810 $ — $ 29,130 $ 610,240 $ — $ 5,966,440 Special Revenue Funds 788,061 — 92,000 394,315 301,746 — Debt Service Funds 19,008 18,154 854 — — — Enterprise Fund KFRC 535,325 — 535,325 — — — Hospital Facilities 191,030 — — 191,030 — — Component unit School District 1,634,092 — — 1,634,092 — — Total transfers $ 9,773,326 $ 18,154 $ 657,309 $ 2,829,677 $ 301,746 $ 5,966,440 Residual Equity Transfers Effective July 1, 2000, the operations of the Mental Health Center Special Revenue Fund were transferred to the General Fund. Accordingly, all assets and liabilities, including a fund deficit of $323,299, were transferred as of July 1, 2000. The transfer of net assets out of the Mental Health Special Revenue Fund and into the General Fund are shown as a residual equity transfer. Excess of Expenditures /Expenses Over Appropriations /Budgets General Fund The following department expenditures exceeded their appropriations: Department Excess Borough attorney $ 74,337 Finance department 7,903 School district support 4,256 Building official 17,408 $ 103,904 Special Revenue Funds The following funds' expenditures exceeded their appropriations: Fund Excess Coastal management $ 2,500 Kodiak Arts Council 828 $ 3,328 32 I �, I � Enterprise Funds The following fund expenses exceeded its budget: Fund Municipal Solid Waste Excess $ 73,103 Proprietary Funds' reconciliation of contributed capital for the year ended June 30, 2001, 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' reconciliation of contributions in aid of construction for the year ended June 30, 2001, is as follows: Enterprise Funds Net contributions in aid of construction at beginning of year Amortization of contributions in aid of construction Net contributions in aid of construction at end of year Kodiak Municipal fisheries solid waste research collection Hospital center and disposal facilities $ 11,523,189 $ 2,508,351 $ 17,357,578 (397,351) (52,408) (598,537) $ 11,125,838 $ 2,455,943 $ 16,759,041 (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 $2,122,151 as of June 30, 2001, which is based on 62 percent usage (filled) of the a landfill. The landfill is estimated to be filled and unusable by the year 2020. Of the total liability at June 30, 2001, an increase of $55,393 was recorded in the current year based on current year usage and changes in estimates. An estimated additional $1,292,849 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 33 , ' i c� capacity. The estimated total current cost of the landfill closure and postclosure care of $3,415,000 is based on the amount that would be paid if the landfill were closed as of June 30, 2001. 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. ' (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 has received $26,194,266 to date, and will receive the balance of the sale in the following payments: ' October 1, 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. (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 Alaska Medical Center, who assumed responsibility for the ' hospital's operations as of April 21, 1997. The lease agreement is effective for a term of ten years from that date and contains provisions for an additional ten -year option. The hospital fixed assets, the lease income, and all other costs relating to the agreement are accounted for by the Borough in the Hospital ' Enterprise Fund. Under the terms of the agreement, certain assets have been transferred to Providence and certain liabilities ' assumed by them. The Borough received a down payment of $2,000,000 at the execution of the lease. For accounting purposes this down payment was recorded as consideration for the net assets and liabilities transferred to /assumed by Providence. ' The agreement with Providence specifies that the Borough shall provide at least $150,000 per year for the purchase of new and replacement equipment for the hospital. The Borough is also required to fund any major maintenance and repairs projects exceeding $10,000 in cost. Additionally, the Borough receives 50 percent of the net revenues of the hospital, up to $600,000. 1 1 34 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. ' (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. 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. ' Litigation On December 14, 2000, a judgment in the amount of $1.35 million was rendered against the Borough in , the 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 the Borough legal counsel that resolution will not occur for at least twelve months. ' Accordingly, the Borough has recorded the judgment in the General Long -term Debt Account Group. 35 1 1 1 1 1 GENERAL FUND 1 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. 1 1 GENERAL FUND ' The General Fund is used to account for resources traditionally associated with government which are not required legally or by sound financial management to be accounted for in any other fund. Principal sources of ' revenue are property taxes and intergovernmental revenues. Primary expenditures are for general government, public services and debt service. 11 1E Exhibit A -1 ' t KODIAK ISLAND BOROUGH General Fund ' Balance Sheets June 30, 2001 and 2000 Assets Equity in central treasury Temporary investments Accounts receivable Due from State of Alaska Due from other funds Property taxes: Delinquent taxes Allowance for uncollectible delinquent taxes Accrued interest Total 0,111 •IIII:I; $ 7,989 $ 650 4,039,690 2,983,700 245,960 302,839 45,890 173,353 1,335,028 745,074 347,523 300,700 (15,828) (15,829) 86,931 51,095 $ 6,093,183 $ 4,541,582 Liabilities and Fund Balances Liabilities: Accounts payable Payroll taxes and employee benefits Other accrued liabilities Due to the City of Kodiak Due to component units Due to other funds Total liabilities Fund balances: Unreserved Designated for subsequent year expenditures Undesignated Total fund balances Total 36 $ 108,598 $ 86,436 41,199 48,475 270,243 261,240 22,022 21,879 4,017,798 2,528,819 213,645 452,218 4,673,505 3,399,067 — 341,900 1,419,678 800,615 1,419,678 1,142,515 $ 6,093,183 $ 4,541,582 Exhibit A -2 KODIAK ISLAND BOROUGH General Fund Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Budget and Actual Year Ended June 30, 2001 (with comparative totals for 2000) (Continued) 37 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Revenues: Property taxes: Real $ 5,808,330" $ 5,808,715 $ 385 $ 5,329,052 Personal 1,096,540" 1,130,975 34,435 999,684 Motor vehicle 190,000' 178,783 (11,217) 183,479 Penalty and interest 160,000'' 162,478 2,478 111,593 Total property taxes 7,254,870 7,280,951 26,081 6,623,808 Severance taxes: Fish 850,000 791,234 (58,766) 1,051,378 Mining 10,000 6,980 (3,020) 11,450 Logging 95,620 56,019 (39,601) 112,822 Total severance taxes 955,620 854,233 (101,387) 1,175,650 Intergovernmental• State sources: State shared revenue 105,456' 112,492 7,036 119,821 Municipal assistance 108,670- 110,760 2,090 122,097 Raw fish tax 968,770' 1,006,948 38,178 833,981 Payments in lieu of taxes 28,000 18,731 (9,269) 21,161 Electric Co-op tax 12,000" 13,624 1,624 12,843 Miscellaneous 12,000 - (12,000) - Total state sources 1,234,896 1,262,555 27,659 1,109,903 Federal sources: Payments in lieu of taxes 450,000 473,737 23,737 448,310 Miscellaneous 350,200/ 399,191 48,991 211,827 Total federal sources 800,200 872,928 72,728 660,137 Total intergovernmental revenue 2,035,096 2,135,483 100,387 1,770,040 Licenses, permits, fees and other local revenues: Building and trailer permits 60,000 66,118 6,118 68,598 Subdivision and zoning fees 4,000- 4,966 966 4,300 Sale of copies 1,200- 20,594 19,394 19,399 Emergency medical services - - - - Miscellaneous 36 48,396 12,306 36,567 Total licenses, permits, fees and other local revenues 101,290 140,074 38,784 128,864 Investments and property: Interest income 260,600/ 583,633 323,033 358,352 Total investments and property 260,600 583,633 323,033 358,352 Total revenues 10,607,476 10,994,374 386,898 10,056,714 (Continued) 37 Exhibit A -2 (Continued) KODIAK ISLAND BOROUGH General Fund Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Budget and Actual Year Ended June 30, 2001 (with comparative totals for 2000) Expenditures: Borough assembly Borough manager Borough clerk Borough attorney Finance department Assessing department Engineering/Facilities 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 Total financing uses Excess (deficiency) of revenues and transfers in over (under) expenditures and transfers out Fund balances, at beginning of year Residual equity transfer out - Mental Health Center Fund Fund balances, at end of year i� I I I 38 ' 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual $ 142,000 $ 137,000 $ 5,000 $ 140,397 175,990 159,275 16,715 187,047 270,450 263,191 7,259 226,573 361,000" 435,337 (74,337) 197,868 381,680' 389,583 (7,903) 369,652 307,460' 288,958 18,502 279,320 131,700/ 85,310 46,390 - 400,280/ 377,374 22,906 304,706 112,500° 129,908 (17,408) 120,472 49,000- 38,000 11,000 37,755 108,598' 239,408 (130,810) 177,874 5,500'' 3,002 2,498 2,791 589,990 594,246 (4,256) 596,143 285,732 223,422 62,310 279,109 155,784 148,351 7,433 161,500 213,645✓ 293,891 (80,246) 329,266 3,691,309 3,806,256 (114,947) 3,410,473 6,916,167 7,188,118 271,951 6,646,241 - 18,154 18,154 21,746 (648,370) (639,370) 9 (860,705) (5,966,440) (5,966,440) - (5,556,310) (6,614,810) (6,587,656) 27,154 (6,395,269) $ 301,357 600,462 $ 299,105 250,972 1,142,515 783,459 (323,299) 108,084 $ 1,419,678 $ 1,142,515 i� I I I 38 ' � I I KODIAK ISLAND BOROUGH ' General Fund Schedule Of Expenditures And Transfers ' Budget And Actual Year Ended June 30, 2001 (with comparative totals for 2000) Expenditures: Borough assembly: Personnel services Fringe benefits Support goods and services Political lobbyist Total Borough assembly Borough Manager's office: Personnel services Fringe benefits Support goods and services Allocated to projects Total Borough Manager's office Borough clerk: Personnel services Fringe benefits Support goods and services Total Borough clerk Borough attorney: Legal fees Support goods and services Total Borough attorney Finance department: Personnel services Fringe benefits Support goods and services Capital outlay Allocated to projects Total Finance department Exhibit A -3 (Continued) 39 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual $ 21,600 $ 20,800 $ 800 $ 21,600 2,400 2,250 150 3,322 58,000 51,950 6,050 52,475 60,000 62,000 (2,000) 63,000 142,000 137,000 5 140,397 118,330 111,806 6,524 115,344 31,630 23,303 8,327 33,228 31,030 29,166 1,864 38,475 (5,000) (5,000) - - 175,990" 159,275 16,715 187,047 144,790 132,604 12,186 123,994 30,140 32,346 (2,206) 32,392 95,520 98,241 (2,721) 70,187 270,450 ' 263,191 7,259 226,573 300,000 411,683 (111,683) 129,506 61,000 23,654 37,346 68,362 361,000 435,337 (74,337) 197,868 354,610 353,567 1,043 344,724 88,200 92,121 (3,921) 95,846 65,610 73,635 (8,025) 59,937 3,000 - 3,000 - (129,740) (129,740) - (130,855) 381,680' 389,583 (7,903) 369,652 (Continued) 39 Exhibit A -3 KODIAK ISLAND BOROUGH General Fund Schedule Of Expenditures And Transfers Budget And Actual Year Ended June 30, 2001 (with comparative totals for 2000) Assessing department: Personnel services Fringe benefits Support goods and services Capital outlay Allocated to projects Total Assessing department Engineering/Facilities department Personnel services Fringe benefits Contracted services Support goods and services Capital outlay Allocated to projects Total Engineering/Facilities department Community development department: Personnel services Fringe benefits Contracted services Support goods and services Capital outlay Allocated to projects Total Community development department Building official: Contracted services Support goods and services Total Building official Economic development: General services: Contracted Services Contributions: Kodiak Chamber of Commerce Total Economic development (Continued) 40 , 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual $ 213,270 $ 201,768 $ 11,502 $ 212,864 54,300 50,119 4,181 59,824 39,390 37,071 2,319 26,497 500 - 500 2,355 - - - (22,220) 307,460 288,958 18,502 279,320 106,120 55,254 50,866 - 34,520 13,442 21,078 - 15,000 751 14,249 - 65,060 55,863 9,197 - 1,000 - 1,000 - (90,000) (40,000) (50,000) - 131,700 85,310 46,390 - 288,230 270,851 17,379 239,831 79,030 67,619 11,411 65,392 - - - (468) 48,020 54,755 (6,735) 40,219 (15,000) (15,851) 851 (40,268) 400,280 377,374 22,906 304,706 107,500 124,606 (17,106) 115,770 5,000 5,302 (302) 4,702 112,500 129,908 (17,408) 120,472 16,000 5,000 11,000 4,755 33,000 33,000 - 33,000 49,000 38,000 11,000 37,755 (Continued) 40 , KODIAK ISLAND BOROUGH General Fund Schedule Of Expenditures And Transfers Budget And Actual Year Ended June 30, 2001 (with comparative totals for 2000) General and administration: Personnel services Fringe benefits Professional fees Support goods and services Total General and administration Emergency preparedness: Support goods and services Total Emergency preparedness School District support: Data processing Mental health services Audit expense Support goods and services Total School District support Health and sanitation department: Emergency Medical Services Animal Control Mental Health Center Council on Alcoholism State Health Services Villages State Health Services KANA Women's Resource Crisis Center American Red Cross Kodiak Baptist Mission Special Olympics Health Center Support Senior Citizen Support Kodiak Respite Care The Salvation Army Brother Francis Shelter Ambulance Service Total Health and sanitation department Exhibit A -3 (Continued) 41 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual $ - $ 1,936 45,310 45,428 (118) 13,881 115,000 117,408 (2,408) 78,462 123,980 76,572 47,408 83,595 284,290 239,408 44,882 177,874 5,500 3,002 2,498 2,791 5,500 3,002 2,498 2,791 126,645 126,645 - 121,409 381,345 381,345 - 381,345 37,000 49,339 (12,339) 49,039 45,000 36,917 8,083 44,350 589,990 594,246 (4,256) 596,143 - - - 15 52,000 52,000 - 52,000 - 4,788 (4,788) 28,809 28,816 (7) 29,802 7,662 6,385 1,277 9,342 2,554 2,554 - 1,420 36,807 36,807 - 28,164 1,750 1,750 - 1,750 17,446 17,446 - 18,752 7,000 7,000 - 7,000 4,500 3,672 828 3,364 24,704 24,704 - 25,000 5,000 5,000 - 5,000 7,500 7,500 - 7,500 25,000 25,000 - 25,000 65,000 - 65,000 65,000 285,732 223,422 62,310 279,109 (Continued) 41 1 Exhibit A -3 KODIAK ISLAND BOROUGH General Fund Schedule Of Expenditures And Transfers Budget And Actual Year Ended June 30, 2001 (with comparative totals for 2000) (Continued) 42 , 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Education, culture and recreation: KMXT Public Radio $ 7,500 $ 7,500 $ - $ 7,500 Historical Society 4,968 4,968 - 5,000 Summer Basketball 5,000 5,000 - 5,000 Kodiak Art Council 15,000 15,000 - 15,000 Village Libraries 15,000 15,000 - 16,500 Chiniak Public Library 3,000 3,000 - 3,000 City of Kodiak Library 3,000 3,000 - 3,000 Head Start 7,583 7,583 - 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 - - - 8,200 KANA Youth Olympics 2,000 2,000 - 2,000 KANA Family Center 12,000 12,000 - 12,000 Kodiak Youth Services Network 5,000 5,000 - 5,000 Kodiak Football League - - - 3,000 Girl Scouts 1,000 1,000 - 1 Non - profit organizations 7,433 - 7,433 - Total Education, culture and recreation 155,784 148,351 7,433 161,500 Management information systems: Personnel services 222,860 186,812 36,048 256,726 Fringe benefits 61,600 49,925 11,675 70,189 Support goods and services 221,745 203,207 18,538 128,854 Capital outlay 45,000 10,092 34,908 40,522 Allocated to projects (156,145) (156,145) - (167,025) Total Management information systems 395,060 293,891 101,169 329,266 Total expenditures 3,916,716 3,806,256 195,770 3,410,473 (Continued) 42 , Exhibit A -3 KODIAK ISLAND BOROUGH General Fund Schedule Of Expenditures And Transfers Budget And Actual Year Ended June 30, 2001 (with comparative totals for 2000) 43 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Other Financing Sources (uses): Operating transfers in from debt service fund $ — $ 18,154 $ 18,154 $ 21,746 Operating transfers out to other funds: Special Revenue Funds: Building and Grounds (29,130) (29,130) — (27,770) Debt Service Funds: Schools (610,240) (610,240) — (777,030) Other (9,000) — 9,000 (33,905) Capital Projects Funds: Various Borough projects — — — (22,000) Operating transfers to component units: Kodiak Island Borough School District (5,966,440) (5,966,440) — (5,556,310) Total financing uses (6,614,810) (6,587,656) 27,154 (6,395,269) Total expenditures and transfers $ 10,531,526 $ 10,393,912 $ 222,924 $ 9,805,742 43 1 1 1 [1 L�� 1 IF] L 1 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues from specific sources which by law are restricted to finance particular func- tions and activities. SPECIAL REVENUE FUNDS The Fire Protection Area No. 1 Fund accounts for the activities related to fire suppression and fire prevention services to the citizens of the 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 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 service area. The Monashka Bay Road Service Area Fund accounts for the activities related to road services within the service area. The Service District No. 1 Fund accounts for the activities related to maintenance service to roads within the district, including snow removal, ditching and grading. The Womens Bay Service Area Fund accounts for the activities related to maintenance service to roads within the service area, including snow and ice removal, ditching and culvert work. The Bay View Road Service Area Fund accounts for the activities related to road services within the service area. The Service Area No. 2 Fund accounts for the activities related to water and sewer services in the service area. This fund is in the design stage at present. The Mental Health Center Fund accounts for rents and expenses on the Borough owned mental health center. The center is leased by Sisters of Providence in Washington d.b.a. Providence Health Systems in Alaska. The Coastal Management Fund accounts for State of Alaska and Federal grants related to the effects of coastal energy development impacts. Expenditures of these grants are for comprehensive plans, coastal sensitivity analysis, outer continental shelf impact analysis, ordinance update, and planning and zoning. The Childcare Assistance Fund accounts for a State of Alaska grant to finance day care for children of low - income employed families. The Welfare to Work Fund accounts for pass through grant monies for local agencies to help individuals become part of the work force. The Local Emergency Planning Committee Fund accounts for State of Alaska grants provided for regional emergency preparation, response, and mitigation planning. The Land Sales Fund accounts for the disposal of Borough -owned lands. The proceeds of land disposals are generally used for the management of Borough lands and the repairs and maintenance of Borough school buildings. The Building and Grounds Fund accounts for the operations and maintenance of certain buildings and grounds owned by the Borough which are jointly shared with the City of Kodiak, the Kodiak Island Borough School District, the State of Alaska, and certain non - profit community organizations. SPECIAL REVENUE FUNDS The Woodland Acres Street Light Service Area Fund accounts for activities related to the provision of street lighting within the service area. The Kodiak Arts Council Fund accounts for activities related to the facilitation of the arts in the Kodiak community. The Facilities Fund accounts for the proceeds from the sale of Shuyak Island. The single most important goal is to preserve the principal of the fund. Interest earnings, after inflation proofing, can be used for debt service and insurance on buildings. The Tourism Development Fund accounts for the collection of the Borough Transient Accommodation Tax (Bed Tax) and its subsequent transfer to the Kodiak Island Convention and Visitor Bureau. The Kodiak Transit Authority Fund accounts for the operation of a local bus system. A local contractor operates two buses within the Kodiak metropolitan area. This fund was closed in fiscal year 2000. KODIAK ISLAND BOROUGH Special Revenue Funds Combining Balance Sheet June 30, 2001 (with comparative totals for 2000) Fire and Road Service Areas See accompanying notes to financial statements. 44 1 Fire Road Fire Womens Kodiak Monashka Protection Bay Fire Airport Fire Bay Road Service Assets Area No.1 Department District Service Area District No.1 Equity in central treasury $ 324,108 $ 198,261 $ 32,281 $ 61,175 $ 248,470 Temporary investments 498,400 - - - - Receivables: State of Alaska - - - - - Federal Government - - - - - Land sales contracts, due within one year - - - - - Accrued interest - - - - - Other 5,909 3,029 1,756 210 2,786 Allowance for doubtful receivables - - - - - Due from other funds - - - - - Frepaid expenditures - - - - - Long -term interfund advances - - - - - Land sale contracts, due after one year - - - - - Total $ 828,417 $ 201,290 $ 34,037 $ 61,385 $ 251,256 Liabilities and Fund Balances Liabilities: Accounts payable $ 8,253 $ 1,027 $ - $ - $ 22,196 Employee benefits accrued and withheld 883 - - - - Customer deposits - 125 - - - Deferred revenues - - - - - Due to other funds - - - - - Total liabilities 9,136 1,152 - - 22,196 Fund Balancs (deficits): Reserved: Long -tern interfund advances - - - - - Unreserved: Designated for subsequent year expenditures 54,400 - - - 62,150 Undesignated 764,881 200,138 34,037 61,385 166,910 Total fund balances (deficits) 819,281 200,138 34,037 61,385 229,060 Totals $ 828,417 $ 201,290 $ 34,037 $ 61,385 $ 251,256 See accompanying notes to financial statements. 44 1 Exhibit B -1 (Continued) 45 Federal and State Grant Programs Child Care Women Bay Bay View Road Service Area Coastal Assistance Welfare to Service Area Service Area No. 2 Management Program Work Program L.E.P.0 $ 201,763 $ 3,254 $ 3,898 $ - $ - $ - $ - - - - 13,725 79,772 15,394 19,500 - - - - - 36,819 - 3,815 87 - - - - - $ $ $ 79,772 $ 52,213 $ 19,500 $ 205,578 3,341 $ 3,898 13,725 $ 20,073 $ - $ - $ 359 $ 37,975 $ 16,941 $ 260 - - - 13,513 28,130 35,272 19,240 20,073 - - 13,872 66,105 52,213 19,500 185,505 3,341 3,898 (147) 13,667 - - 185,505 3,341 3,898 (147) 13,667 - - $ 205,578 $ 3,341 $ 3,898 $ 13,725 $ 79,772 $ 52,213 $ 19,500 (Continued) 45 1 I I KODIAK ISLAND BOROUGH Special Revenue Fund Combining Balance Sheet June 30, 2001 (with comparative totals for 2000) Woodland Acres Street E Buildings and Light Service Kodiak Arts Assets Land Sales Grounds Area Council Facilities Equity in central treasury $ 201,089 $ — $ 39,065 $ — $ 76,604 Temporary investments — — — — 13,859,612 Receivables: , State of Alaska — — — — — Federal Government — — — — — Land sales contracts, due within one year 42,048 — — — — Accrued interest — — — — — Other (484) 5,800 2 63 143,507 ' Allowance for doubtful receivables — — — — — Due from other funds — — — — 357,912 Prepaid expenditures — — — — — Long-term interfund advances — — — — 7,370,000 ' Land sale contracts, due after one year — — — — — Total $ 242,653 $ 5,800 $ 39,067 $ 63 $ 21,807,635 Liabilities and Fund Balances L Liabilities: Accounts payable $ — $ 12,114 $ 453 i Employee benefits accrued and withheld — (600) — Customer deposits — — — — — Deferred revenues 42,048 — — — — Due to other funds — 242,033 — — Total liabilities 42,048 253,547 453 Fund Balances (deficits): Reserved: Long -term interfund advances — — — — 7,370,000 Unreserved: Designated for subsequent year expenditures 55,250 — 7,000 — — Undesignated 145,355 (247,747) 31,614 63 14,437,635 Total fund balances (deficits) 200,605 (247,747) 38,614 63 21,807,635 Total $ 242,653 $ 5,800 $ 39,067 $ 63 $ 21,807,635 ' z 1; i 46 i ' Exhibit B -1 (Continued) Tourism Totals Development 2001 2000 $ 9,765 $ 1,399,733 $ 1,088,574 — 14,358,012 9,115,342 — 128,391 138,498 — 36,819 16,027 — 42,048 58,364 — — 72,582 15,580 182,060 126,002 — — (61,284) — 357,912 1,012,590 — — 8,164 — 7,370,000 7,595,000 — — 84,151 $ 25,345 $ 23,874,975 $ 19,254,010 $ — $ 119,651 $ 83,186 — 283 118 400 525 650 — 42,048 173,052 — 338,188 810,043 400 500,695 1,067,049 — 7,370,000 7,595,000 — 178,800 35,150 24,945 15,825,480 10,556,811 24,945 23,374,280 18,186,961 $ 25,345 $ 23,874,975 $ 19,254,010 47 KODIAK ISLAND BOROUGH Special Revenue Funds Combining Statement of Revenues, Expenditures, Transfers and changes in fund balances (Accumulated Deficits) Juste 30, 2001 (with comparative totals for 2000) See accompanying notes to financial statements. I � 48 1 t Fire and Road Service Areas Fire Road Fire Womens Kodiak Monashka Protection Bay Fire Airport Fire Bay Road Service Womens Bay Area No. 1 Department District Service Area District No.1 Service Area Revenues: Property taxes $ 279,146 $ 52,899 $ 13,995 $ 22,338 $ 124,293 S 80,956 State sources 9,844 259 - 886 4,400 4,821 Federal sources - - - - - - Land sale proceeds - - - - - - Licenses, permits, fees and other local revenues - - - - - 20,000 investments and property 49,403 11,366 1,906 3,258 14,039 11,231 Other 4,979 7,870 Total revenues 343,372 72,394 15,901 26,482 142,732 117,008 Expenditures: Community development department - - - - - - General and administration 162,483 46,016 14,270 10,380 99,930 102,375 Health and sanitation department - - - - - - Capital outlay: Services district maintenance 14,306 Total expenditures 162,483 60,322 14,270 10,380 99,930 102,375 Excess (deficiency) of revenues over(under)expenditures 180,889 12,072 1,631 16,102 42,802 14,633 Other Financing Sources (uses): Operating transfers in from other funds - - - - - - Operating transfers out to other funds (985) - - - - Net other financing sources (uses) (985) - - - - - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 179,904 12,072 1,631 16,102 42,802 14,633 Fund balances (accumulated deficits), at beginning of year 639,377 188,066 32,406 45,283 186,258 170,872 Residual equity transfers in (out) - - - - - - Fund balances (accumulated deficits), at end of year $ 8819,281 $ 200,138 $ 34,037 $ 61,385 $ 229,060 $ 185,505 See accompanying notes to financial statements. I � 48 1 t Exhibit B•2 49 Federal and State Grant Programs Child Care Welfare Bay View Road Service Area Mental Health Coastal Assistance to Work Buildings and Service Area No. 2 Center Management Program Program L.E.P.C. Land Saks Grounds $ 5,034 $ - $ - $ - $ - $ - $ - $ - $ - 371 - - 28,440 463,388 134,969 19,500 - - - - - - - 40,792 - - - - - - - - - - 112,128 - - - - - - - - 17,406 - 242 203 - - - - - - 359,253 5,647 203 28,440 463,388 175,761 19,500 129,534 359,253 - - - 28,440 - - - - - 4,560 2 - - - 175,761 19,500 100,368 422,657 - - - - 463,388 - - - - 4,560 2 28,440 463,388 175,761 19,500 100,368 422,657 1,087 201 - 29,166 (63,404) - - - - - - - - 121,984 121,984 1,087 201 - - - - - 29,166 58,580 2,254 3,697 (323,299) (147) 13,667 - - 171,439 (306,327) 323,299 S 3,341 8,8998 S - $ (147) $ 13,667 $ - S S 200,605 S (2 (Continued) 49 Exhibit B -2 a (Continued KODIAK ISLAND BOROUGH Special Revenue Funds Combining Statement of Revenues, Expenditures, Transfers and changes in fund balances (Accumulated Deficits) June 30, 2001 (with comparative totals for 2000) I � 50 1 Woodland Acres Street Light Service Kodiak Arts Tourism Totals Area Council Facilities Development 2001 2000 Revenues: Property taxes $ - $ - S - S - S 578,661 $ 487,853 State sources - - - - 666,878 963,227 Federal sources - - - - 40,792 32,291 Land sale proceeds - - 4,000,000 - 4,112,128 4,319,461 Licenses, permits, fees and other local revenues - 52,465 - 42,511 132,382 240,042 Investments and property 2,181 - 758,307 67 1,211,456 765,658 Other 12,849 6,623 Total revenues 2,181 52,465 4,758,307 42,578 6,755,146 6,815,155 Expenditures: Community development department - - - 37,917 66,357 63,594 General and administration 5,473 52,548 - - 1,216,323 1,354,049 Health and sanitation department - - - - 463,388 479,029 Capital outlay: Services district maintenance 14,306 213,485 Total expenditures 5,473 52,548 - 37,917 1,760,374 2,110,157 Excess (deficiency) of revenues over(under)expenditures (3,292) (83) 4,758,307 4,661 4,994,772 4,704,998 Other financing sources (uses): Operating transfer: in from other funds - - 535,325 - 657,309 682,044 Operating transfers out to other funds - - (787,076) - (788,061) (581,419) Net other financing sources (uses) (251,751) (130,752) 100425 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (3,292) (83) 4,506,556 4,661 4,864,020 4,805,623 Fund balances (accumulated deficits), at beginning of year 41,906 146 17,301,079 20,284 18,186,961 13,381,338 Residual equity transfers in (out) - - - - 323,299 - Fund balances (accumulated deficits), at end of year $ 38,614 $ 63 $ 21,807,635 $ 24,945 $ 23,374,280 $ 18,186,961 I � 50 1 Exhibit B -3 KODIAK ISLAND BOROUGH Special Revenue Funds Fire and Road Service Areas - Fire Protection Area No. l Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) Revenues: Property taxes State sources 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: Debt Service Funds Total other financing uses Excess of revenues over expenditures Fund balances, at beginning of year Fund balances, at end of year See accompanying notes to financial statements. 51 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual $ 252,000 $ 279,146 $ 27,146 $ 252,645 5,500 9,844 4,344 13,386 15,000 4,979 - 4,859 - 49,403 49,403 36,261 272,500 343,372 80,893 307,151 65,000 56,541 8,459 50,432 15,000 9,185 5,815 4,840 25,500 11,288 14,212 13,218 19,000 578 18,422 1,680 98,000 84,891 13,109 61,793 25,000 - 25,000 10,719 25,000 - 25,000 - 272,500 162,483 110,017 142,682 - 180,889 190,910 164,469 - (985) - (1,616) - (985) - (1,616) $ - 179,904 $ 190,910 162,853 639,377 476,524 $ 819,281 $ 639,377 51 Exhibit B -4 ' KODIAK ISLAND BOROUGH 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, 2001 (with comparative totals for 2000) 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 Professional services Support goods and services Capital outlay Total expenditures Excess (deficiency) of revenues over (under) 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 52 1 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual $ 48,470 $ 52,899 $ 4,429 $ 49,897 250 259 9 416 9,000 7,870 (1,130) 8,267 3,000 11,366 8,366 9,979 60,720 72,394 11,674 68,559 1,700 931 769 39 3,000 - 3,000 - 2,500 1,701 799 - 49,820 43,384 6,436 25,449 18,200 14,306 3,894 6,487 75,220 60,322 14,898 31,975 (14,500) 12,072 26,572 36,584 - - - 600 $ (14,500) 12,072 $ 26,572 37,184 188,066 150,882 $ 200,138 $ 188,066 52 1 Exhibit B -5 KODIAK ISLAND BOROUGH 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, 2001 (with comparative totals for 2000) 53 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Revenues: Property taxes $ 27,910 $ 13,995 $ (13,915) $ 28,483 Investments and property 100 1,906 1,806 1,129 Total revenues 28,010 15,901 (12,109) 29,612 Expenditures: General and administration: Contracted services 27,890 14,181 13,709 15,139 Support goods and services 120 89 31 79 Total expenditures 28,010 14,270 13,740 15,218 Excess of revenues over expenditures $ — 1,631 $ (25,849) 14,394 Fund balances, at beginning of year 32,406 18,012 Fund balances, at end of year $ 34,037 $ 32,406 53 Exhibit B -6 KODIAK ISLAND BOROUGH 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, 2001 (with comparative totals for 2000) 54 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Revenues: Property taxes $ 19,690 $ 22,338 $ 2,648 $ 21,499 State sources - shared revenue 1,410 886 (524) 1,243 Investments and property 2,300 3,258 958 2,749 Total revenues 23,400 26,482 3,082 25,491 Expenditures: Capital outlay: Service district maintenance: Personnel services 500 - 500 - Snow removal/sanding 12,000 3,996 8,004 12,777 Road grading/ditching 17,084 6,303 10,781 10,258 Repairs and maintenance 1,500 - 1,500 730 Support goods and services 900 81 819 72 Total expenditures 31,984 10,380 20,785 23,837 Excess of revenues over expenditures $ (8,584) 16,102 $ 23,867 1,654 Fund balances, at beginning of year 45,283 43,629 Fund balances, at end of year $ 61,385 $ 45,283 54 Exhibit B -7 KODIAK ISLAND BOROUGH Special Revenue Funds Fire and Road Service Areas - Service District No. l Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) 55 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Revenues: Property taxes $ 108,000 $ 124,293 $ 16,293 $ 54,118 State sources 7,000 4,400 (2,600) 5,261 Investments and property 8,000 14,039 6,039 11,952 Total revenues 123,000 142,732 19,732 71,331 Expenditures: Capital outlay: Service district maintenance: Personnel services 4,150 3,408 742 3,432 Snow removal/sanding 65,000 16,415 48,585 22,532 Road grading/ditching 30,000 44,329 (14,329) 46,618 Repairs and maintenance 50,000 35,131 14,869 30,413 Support goods and services 2,000 647 1,353 2,251 Total expenditures 151,150 99,930 49,867 105,246 Excess of revenues over expenditures $ (28,150) 42,802 $ 69,599 (33,915) Fund balances, at beginning of year 186,258 220,173 Fund balances, at end of year $ 229,060 $ 186,258 55 Exhibit B -8 ' f KODIAK ISLAND BOROUGH Special Revenue Funds Fire and Road Service Areas - Womens' Bay Service Areas Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) Revenues: Property taxes State sources - shared revenue Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures: Capital outlay: Service district maintenance: Personnel services Snow removal/sanding Road grading/ditching Repairs and maintenance Support goods and services Total expenditures Other financing uses: Operating transfers out to other funds: Womens Bay Fire Department Excess of revenues over expenditures Fund balances, at beginning of year Fund balances, at end of year - - - (600) a k:)U,000) 14,633 $ 64,633 32,571 170,872 138,301 $ 185,505 $ 170,872 3,430 2001 3,430 - 30,000 12,701 Variance - 50,647 23,000 13,459 favorable 2000 Budget Actual (unfavorable) Actual 21,100 865 $ 73,900 $ 80,956 $ 7,056 $ 76,153 4,260 4,821 561 5,875 20,000 20,000 - 20,000 5,280 11,231 5,951 10,537 103,440 117,008 13,568 112,565 3,430 - 3,430 - 30,000 12,701 17,299 50,647 23,000 13,459 9,541 10,193 75,910 75,350 560 18,200 21,100 865 20,235 354 153,440 102,375 51,065 79,394 56 Exhibit B -9 KODIAK ISLAND BOROUGH Special Revenue Funds Fire and Road Service Areas – Bay View Road Service Area Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Buget and Actual Year ended June, 30, 2001 (with comparative totals for 2000) 2001 Revenues: Property taxes State sources – shared revenue Investments and property Total revenues Expenditures: Capital outlay: Service district maintenance: Snow removal/sanding Road grading/ditching Repairs and maintenance Support goods and services Total expenditures Excess of revenues over expensitures Fund balances, at beginning of year Fund balances, at end of year 2,500 879 Variance- 1,970 1,841 129 favorable 2000 Budget Actual (unfavorable) Actual 5,470 4,560 910 $ 4,600 $ 5,034 $ 434 $ 5,058 670 371 (299) 447 200 242 42 221 5,470 5,647 177 5,726 2,500 879 1,621 1,970 1,841 129 1,000 1,823 (823) — 17 (17) 5,470 4,560 910 $ — 1,087 $ 1,087 2,254 $ 3,341 3,921 1,072 J,WO 718 1,536 $ 2,254 57 Exhibit B -10 KODIAK ISLAND BOROUGH 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, 2001 (with comparative totals for 2000) 2001 Revenues: Investments and property Expenditures: Capital outlay: Service district maintenance Excess of revenues over expenditures Fund balances, at beginning of year Fund balances, at end of year Variance- favorable Budget Actual (unfavorable) $ 200 $ 203 $ 3 $ 200 2 198 2000 200 $ — 201 $ 201 200 3,697 3,497 $ 3,898 $ 3,697 58 Exhibit B -11 KODIAK ISLAND BOROUGH Special Revenue Funds Mental Health Center Statement of Revenues, Expenditures, Transfers and Changes in Fund Deficits Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Revenues: Licenses, permits, fees and other local revenues: Net individual and organization user fees $ — $ — $ — $ (150) Other — — — 2,592 Total revenues — — — 2.442 Expenditures: Health and sanitation department: Mental health program: Other Total expenditures Excess of revenues over expenditures Fund deficits, at beginning of year Residual equity transfer from General Fund Fund deficits, at end of year a — (777) (777) $ — 3,219 (323,299) (326,518) 323,299 — $ — $ (323,299) 59 Exhibit B -12 KODIAK ISLAND BOROUGH Special Revenue Funds Coastal Management Statement of Revenues, Expenditures, Transfers and Changes in Fund Deficits Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) .1 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Revenues: State sources – grants $ 25,940 $ 28,440 $ 2,500 $ 25,670 Total revenues 25,940 28,440 2,500 25,670 Expenditures: Community development department: Planning and zoning 25,940 28,440 (2,500) 25,670 Total expenditures 25,940 28,440 (2,500) 25,670 Excess of revenues over $ — — $ — — Fund deficits, at beginning of year (147) (147) Fund deficits, at end of year $ (147) $ (147) .1 Exhibit B -13 KODIAK ISLAND BOROUGH Special Revenue Funds Child Care Assistance Program Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) 61 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Revenues: State sources – grants $ 540,049 $ 463,388 $ (76,661) $ 479,806 Other — — — 4,031 Total revenues 540,049 463,388 (76,661) 483,837 Expenditures: Health and sanitation department: Personnel 56,670 55,307 (1,363) 54,253 Professional services 464,194 396,384 (67,810) 410,528 Support goods and services 19,185 11,697 7,488 15,025 Total expenditures 540,049 463,388 (61,685) 479,806 Excess of revenues over expenditures $ — — $ (138,346) 4,031 Fund balances, at beginning of year 13,667 9,636 Fund balances, at end of year $ 13,667 $ 13,667 61 Exhibit B -14 KODIAK ISLAND BOROUGH Special Revenue Funds Welfare to Work Program Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) 62 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Rrevenues: State sources – grants $ 109,500 $ 134,969 $ 25,469 $ 145,755 Federal sources – grants 107,783 40,792 (66,991) 16,028 Total revenues 217,283 175,761 (41,522) 161,783 Expenditures: General and administration: Personnel services 12,842 4,740 8,102 16,997 Professional services 200,644 169,829 30,815 141,674 Support goods and services 3,797 1,192 2,605 3,112 Total expenditures 217,283 175,761 41,522 161,783 Excess of revenues over expenditures $ — — $ — — Fund balances, at beginning of year — — Fund balances, at end of year $ — $ — 62 Exhibit B -15 KODIAK ISLAND BOROUGH Special Revenue Funds L.E.P.0 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) Revenues: State sources: L.E.P.C. grant Total revenues Expenditures: General 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 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual $ 19,500 $ 19,500 $ — $ 30,600 19,500 19,500 — 30,600 — — — 2,178 19,500 16,877 2,623 25,942 — 2,623 (2,623) 2,481 19,500 19,500 — 30,601 $ — — $ — (1) — 63 i F Exhibit B -16 ' KODIAK ISLAND BOROUGH Special Revenue Funds Land Sales Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance (Deficit) Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) 64 1 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Revenues: Land sale proceeds $ 110,800 $ 112,128 $ 1,328 $ 319,461 Licenses, permits, fees and other local revenues 1,000 1,000 - - Gravel sales 45,000 16,406 (28,594) 30,000 Other - - - 27,555 Total revenues 156,800 129,534 (27,266) 377,016 Expenditures: General and administration: Personnel services 40,000 40,000 - 87,599 Contracted services 47,000 36,160 10,840 13,295 Support goods and services 69,800 24,208 45,592 27,519 Capital outlay - - - 38,992 Total expenditures 156,800 100,368 56,432 167,405 Excess of revenues over expenditures $ - 29,166 $ 29,166 209,611 Fund balance (deficit), at beginning of year 171,439 (38,172) Fund balances, at end of year $ 200,605 $ 171,439 64 1 � I Exhibit B -17 KODIAK ISLAND BOROUGH ' Special Revenue Funds Buildings and Grounds ' Statement of Revenues, Expenditures, Transfers and Changes in Fund Deficits j Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) Revenues: Investments and property: Rental Total revenues Expenditures: General and administration: Engineering facilities School buildings Borough building Apartments Parks operation and maintenance Total expenditures Deficiency of revenues under expenditures Other financing sources: Operating transfers in from other funds: General Fund Facilities Fund Debt Service Fund Other Net other financing sources Excess (deficiency) of revenues and other financing sources over (under) expenditures Fund deficits, at beginning of year Fund deficits, at end of year 29,130 29,130 - 92,000 92,000 - 1Ll,l�u 1L1,Y54 ?04 $ - 58,580 $ (56 (306,327) $ (247,747) 27,770 100,000 3,911 131,681 (216,584) (89,743) $ (306,327) 65 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual $ 351,640 $ 359,253 $ 7,613 $ 314,017 351,640 359,253 7,613 314,017 - - - 183,337 114,000 89,650 24,350 178,315 328,220 304,984 23,236 268,435 - 3,389 (3,389) 3,008 30,550 24,634 5,916 29,187 472,770 422,657 50,113 662,282 (121,130) (63,404) (57,726) (348,265) 29,130 29,130 - 92,000 92,000 - 1Ll,l�u 1L1,Y54 ?04 $ - 58,580 $ (56 (306,327) $ (247,747) 27,770 100,000 3,911 131,681 (216,584) (89,743) $ (306,327) 65 Exhibit B -18 KODIAK ISLAND BOROUGH 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, 2001 (with comparative totals for 2000) 66 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Revenues: State sources – shared revenue $ — $ — $ — $ 54 Investments and property 2,000 2,181 181 2,403 Total revenues 2,000 2,181 181 2,457 Expenditures: General and administration: Support goods and services 6,000 5,473 527 5,098 Capital outlay 3,000 — 3,000 — Total expenditures 9 5,473 3,527 5,098 Deficiency of revenues under expenditures $ (7,000) (3,292) $ 3,708 (2,641) Fund balance, at beginning of year 41,906 44,547 Fund balances, at end of year $ 38,614 $ 41,906 66 Exhibit B -19 KODIAK ISLAND BOROUGH Special Revenue Funds Kodiak Arts Council Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) Revenues: Licenses, permits, fees and other local services: Reimbursement from Kodiak Arts Council Total revenues Expenditures: General administration: Personnel services Fringe benefits Support goods and services Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance, at beginning of year Fund balances, at end of year 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual $ 51,720 $ 52,465 $ 745 $ 53,518 51,720 52,465 745 53,518 42,270 42,270 — 42,205 9,450 9,366 84 10,347 — 912 (912) 849 51,720 52,548 (828) 53,401 $ — (83) $ (83) 117 146 29 $ 63 $ 146 67 u Exhibit B -20 ' KODIAK ISLAND BOROUGH Special Revenue Funds Facilities Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) 68 1 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Revenues: Land sale proceeds: Proceeds from the sale of Shuyak Island $ 4,000,000 $ 4,000,000 $ — $ 4,000,000 Investments and property 1,385,888 758,307 (627,581) 376,208 Total revenues 5,385,888 4,758,307 (627,581) 4,376,208 Expenditures: General and administration 4,598,812 — 4,598,812 — Total expenditures 4,598,812 — 4,598,812 — Excess of revenues over expenses 787,076 4,758,307 3,971,231 4,376,208 Other financing uses: Operating transfers in (out) from (to) other funds: Capital Projects – Borough projects (301,746) (301,746) — (200,640) Buildings and grounds (92,000) (92,000) — (100,000) Enterprise – KFRC — 535,325 535,325 549,763 Debt Service funds (393,330) (393,330) — (278,561) Net other financing uses (787,076) (251,751) 535,325 (29,438) Excess of revenues and other financing sources over expenditures and other financing uses $ — 4,506,556 $ 4,506,556 4,346,770 Fund balances, at beginning of year 17,301,079 12,954,309 Fund balances, at end of year $ 21,807,635 $ 17,301,079 68 1 Exhibit B -21 KODIAK ISLAND BOROUGH Special Revenue Funds Tourism Development Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) 2001 Revenues: Transient accommodations tax Investments and property Total revenues Expenditures: Community development: Contributions 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 Variance- favorable Budget Actual (unfavorable) $ 42,700 $ 42,578 $ (122) $ 200 — (200) 42,900 42,578 (322) 2000 37,889 37,889 42,900 37,900 5,000 37,900 — 17 (17) 24 42,900 37,917 4,983 37,924 $ — 4,661 $ 4,661 (35) 20,284 20,319 $ 24,945 $ 20,284 .` Exhibit B -22 KODIAK ISLAND BOROUGH Special Revenue Funds Kodiak Transit Authority Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance (Deficit) Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) Revenues: City of Kodiak subsidy State sources – grants Federal sources – grants Licences, permits, fees and other local revenues Total revenues Expenditures: General and administration: Transportation services Support goods and services Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balance (deficit), at beginning of year Fund balance, at end of year 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual $ — $ — $ — $ 42,837 — 255,662 — — 15,315 — 15,267 — 329,081 83,342 VJ'V 245,477 (245,477) 70 �I J I DEBT SERVICE FUNDS ' 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. 1 0 r 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. Exhibit C -1 KODIAK ISLAND BOROUGH Debt Service Funds Combining Balance Sheet June 30, 2001 (with comparative totals for 2000) Education 71 and Totals Assets Health Other 2001 2000 Equity in central treasury $ 344,942 $ 113,983 $ 458,925 $ 134,886 Temporary investments 12,116 — 12,116 694,611 Accrued interest receivable — — — 17,318 Total $ 357,058 $ 113,983 $ 471,041 $ 846,815 Liabilities and Fund Balances Liabilities: Accounts payable $ 12,116 $ — $ 12,116 $ — Due to other funds — — — 442,158 Total liabilities 12,116 — 12,116 442,158 Fund balances: Unreserved 344,942 113,983 458,925 404,657 Total fund balances 344,942 113,983 458,925 404,657 Total $ 357,058 $ 113,983 $ 471,041 $ 846,815 71 Exhibit C -2 KODIAK ISLAND BOROUGH Debt Service Funds Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Year Ended June 30, 2001 (with comparative totals for 2000) Revenues: Investments and property: Interest income Total revenues Expenditures: Debt service: Principal Interest Fiscal agent fees General and administrative Total expenditures Deficiency of revenues under expenditures Other financing sources (uses): Operating transfer in from component unit Operating transfers in from other funds Operating transfers out to other funds Total other financing sources (uses) (Deficiency) excess of revenues and other financing sources (under) over expenditures and other financing uses Fund balances, beginning of year Fund balances, end of year Education and Totals Health Other 2001 2000 $ 24,718 $ — $ 24,718 $ 23,700 24,718 — 24,718 23,700 2,015,834 — 2,015,834 1,905,834 745,493 — 745,493 855,916 — — — 2,247 19,792 — 19,792 4,200 2,781,119 — 2,781,119 2,768,197 (2,756,401) — (2,756,401) (2,744,497) 1,634,092 — 1,634,092 1,621,398 1,194,600 985 1,195,585 1,091,113 — (19,008) (19,008) (25,657) 2,828,692 (18,023) 2,810,669 2,686,854 72,291 (18,023) 54,268 (57,643) 272,651 132,006 404,657 462,300 $ 344,942 $ 113,983 $ 458,925 $ 404,657 72 Exhibit C -3 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, 2001 (with comparative totals for 2000) Revenues: Investments and property: Interest income Total revenues Expenditures: Debt service: Principal Interest Fiscal agent fees General and administrative Total expenditures Deficiency of revenues under expenditures Other financing sources (uses): Operating transfer in from component unit Operating transfers in from other funds Net other financing sources Deficiency of revenues and other financing sources under expenditures and other financing uses Fund balances, at beginning of year Fund balances, at end of year 73 ' t 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual $ — $ 24,718 $ 24,718 $ 23,700 — 24,718 24,718 23,700 2,015,840 2,015,834 6 1,905,834 770,500 745,493 25,007 855,916 — — — 2,247 44,400 19,792 24,608 4,200 2,830,740 2,781,119 49,621 2,768,197 (2,830,740) (2,756,401) 74,339 (2,744,497) 1,636,140 1,634,092 (2,048) 1,621,398 1,194,600 1,194,600 — 1,055,591 2,830,740 2,828,692 (2,048) 2,676,989 $ — 72,291 $ 72,291 (67,508) 272,651 340,159 $ 344,942 $ 272,651 73 ' t Exhibit C -4 KODIAK ISLAND BOROUGH Debt Service Funds Other Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) 74 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual Expenditures: Employee benefits $ 9,000 $ — $ 9,000 $ — Other financing sources (uses): Operating transfers in from other funds 9,000 985 (8,015) 35,522 Operating transfer out to other funds — (19,008) (19,008) (25,657) Net other financing sources (uses) 9,000 (18,023) (27,023) 9,865 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing sources $ — (18,023) $ (18,023) 9,865 Fund balances, at beginning of year 132,006 122,141 Fund balances, at end of year $ 113,983 $ 132,006 74 I 1 1 1 1 CAPITAL PROTECTS FUNDS Capital Projects Funds are used to account for general govern- ment capital projects financed by general obligation bond issues, intergovernmental grants, contributions from other funds and interest income, exclusive of projects financed by proprietary funds. 1 I CAPITAL PROJECTS FUNDS The Various Borough Projects Fund accounts for general government construction projects not accounted for in other funds. t The State Capital Grants Fund accounts for capital improvement projects relating to grants received from the State of Alaska. 1 I I 3 ' I I I I a Exhibit D -1 KODIAK ISLAND BOROUGH Capital Project Funds Combining Balance Sheet June 30, 2001 (with comparative totals for 2000) 75 I F Various State Borough Capital Totals Assets Projects Grants 2001 2000 Equity in central treasury $ 245,313 $ - $ 245,313 $ 80,447 Temporary investments 2,727,987 - 2,727,987 297,690 Receivables: Accrued interest - - - 7,422 State of Alaska - 268,249 268,249 22,909 Due from other funds 213,647 - 213,647 323,149 Total $ 3,186,947 $ 268,249 $ 3,455,196 $ 731,617 Liabilities and Fund Balances Liabilities: Accounts payable $ 274,879 $ 132,228 $ 407,107 $ 12,660 Retainages payable 48,181 - 48,181 3,707 Deferred revenues - - - 25,354 Due to other funds 17,587 135,327 152,914 4,038 Total liabilities 340,647 267,555 608,202 45,759 Fund balances: Fund balances: Reserved for encumbrances 2,076,349 61,581 2,137,930 59,459 Unreserved: Undesignated 769,951 (60,887) 709,064 626,399 Total fund balances 2,846,300 694 2,846,994 685,858 Total $ 3,186,947 $ 268,249 $ 3,455,196 $ 731,617 75 I F Exhibit D -2 KODIAK ISLAND BOROUGH Capital Project Funds Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances Year ended June 30, 2001 (with comparative totals for 2000) Revenues: State sources Federal sources Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures: Capital improvements: Schools General Total expenditures Deficiency of revenues under expenditures Other financing sources (uses): Operating transfers in from other funds Proceeds from issuance of long -term debt Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances, at beginning of year Residual equity transfers in Fund balances, at end of year Various State Borough Capital Totals Projects Grants 2001 2000 $ - $ 388,741 $ 388,741 $ 13,498 - - - 39,366 - - - (9,630) 89,551 - 89,551 2,303 89,551 388,741 478,292 45,537 472,943 199,042 671,985 5,487 73,281 551,507 624,788 144,628 546,224 750,549 1,296,773 150,115 (456,673) (361,808) (818,481) (104,578) 301,746 - 301,746 222,640 2,677,871 - 2,677,871 - 2,979,617 - 2,979,617 222,640 2,522,944 (361,808) 2,161,136 118,062 323,356 362,502 685,858 271,041 - - - 296,755 $ 2,846,300 $ 694 $ 2,846,994 $ 685,858 76 KODIAK ISLAND BOROUGH Capital Projects Funds Schedule of Capital Funds For the year ended June 30, 2001 Appropriations Total No. Project Status Prior 2001 appropriations , Capital Projects - Education:, 128 410 -653 Peterson Addition (Match) Completed $ 1,269,450 $ (100,000) $ - -1 130 410 -655 East Elementary Doorways Open 4,200 - 4 ' 152 410 -668 High School Roof Design Completed 72,800 - -42L, 9 00100 430 -696 School Repair KHS Roof Open 181,100 (54,330) 126,770 00101 410 -697 School Repair KHS Roof Complete 200,640 (200,573) 6 00105 410 -484 HS Matching to 00100 Open - 54,330 - 54,436` , 01100 430 -601 HS Roof Repair Open - 125,398 125,398✓ 01101 410 -485 HS Matching to 01100 Open - 53,742 -- 53,fi42' C 1 01102 420 -510 Series E Bond HS Roof Repair Open - 1,505,000 1,505,000 01105 410 -695 Series F Bond HS Roof Repair Open - 968,106 968,106 , Total Education 1,728,190 2,351,673 4,079,863 Capital Projects - Health: "3 121 410 -647 New Ambulance Purchase Open 24,000 (24,000) - ' Total Health 24,000 (24,000) - Capital Projects - Utilities: 00102 410 -698 Bayside Undergound Electric Open 22,000 - 22,000 182 410 -692 State Fair & Rodeo Water Open 25,000 - 25,000 s Total Utility Projects 47,000 - 47,000 Capital Projects - Other: 410 -400 Undesignated Projects Open - 224,764 224,764 85 410 -471 Village Metals Removal Open 150,000 - 150,000 105 410 -482 Anton Larsen Dock Open 140,000 - 140,000 114 410 -642 State Airport Improvements Open 11,000 - 11,000 , 117 410 -645 Heliopad Striping Open 3,000 - 3,000 133 410 -658 Red Cross Building Repairs Open 12,000 - 12,000 142 430 -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. Complete 590,000 (124,253) 4665,547✓ 146 410 -663 BMX Bike Trail Open 55,000 - 55,000 158 410 -674 Fire Service Study Complete 31,055 (31,055) - 159 410 -675 Borough Parks Open 26,500 - 26,500 , 164 430 -645 Waste Management Imp Open 1,585,800 - 1,585,800 169 430 -649 Clean Water Karluk Open 350,000 - 350,000 170 410 -680 Bayside Fuel Tank Removal Complete 5,000 (5,000) - 172 410 -682 Nixon Ranch Road Complete 23,000 1� 173 410 -683 Bayside Classroom Add Open 75,000 75,000 174 410 -684 Bayside Storage/Bay Add Open 325,000 75,000 400,000 177 430 -687 Anton Larsen Boat Ramp Open 400,000 - 400,000 183 410 -693 School Freezer Relocation Complete 40,000 (8,131) - 31;869' ' 184 430 -694 Oil Spill Response Equip Open 400,000 - 400,000 00103 430 -691 Island Lake Fish Passage Complete 10,000 - mow -' 00104 430 -699 Tide Gate Open 10,000 - 10,000 00106 410 -690 MIS Study Open 20,000 10,000 30,000 , Transfers Out Complete 16,252 (16,252) - Total - Capital Projects Other 4,578,607 (124,927) 4,453,680 Total All Capital Projects $ 6,377,797 $ 2,202,746 $ 8,580,543 ' 77 , Exhibit D -3 - - - 22,000 Encumbrances 11,807 Expenditures 15,309 Total Unexpended Current Unencumbered Prior 2001 expenditures balance encumbrances balance 206,894 $ 1,169,450 $ - $ $ - $ - $ - 139,580 - 139,580 4,200 - 4,200 6,634 66,168 10,940 (2) - (2) - 73,644 - d 73,644 53,126 42,095 11,031 - 67 23,192 - 23,192 - - 54,330 -- 54,330' - - - - 125,399 -F -S (1) - (1) - 53,742 > - - - - 294,064 --b 294,064 1,210,936 1,112,815 98,121 - 4,572 - -- h 4,572 963,534 963,534 - 1,176,084 671,986 1,848,070 2,231,793 2,118,444 113,349 - - - 22,000 - 22,000 11,807 3,502 15,309 9,691 - 9,691 11,807 3,502 15,309 31,691 - 31,691 - 17,870 17,870 206,894 - 206,894 120,539 456 120,995 29,005 - 29,005 139,580 - 139,580 420 - 420 60 - 60 10,940 - 10,940 - - - 3,000 - 3,000 6,777 - 6,777 5,223 - 5,223 23,192 - 23,192 26,808 - 26,808 465,747 - 465,7 - - - 49,278 - 49,278 5,722 - 5,722 10,231 - 10,231 16,269 - 16,269 13,500 149,736 163,236 1,422,564 - 1,422,564 89,189 - 89,189 260,811 - 260,811 1,531 21,469 X990 - - - 48,199 - 48,199 26,801 - 26,801 20 - 20 399,980 - 399,980 42,405 45,765 88,170 311,830 19,486 292,344 31,869 - 3T869 - - - - 354,702 354,702 45,298 - 45,298 - - - -- 10,000 - 10,000 - 1,304 1,304 8,696 - 8,696 - 29,983 29,983 17 - 17 1,042,117 621,285 1,663,402 2,790,278 19,486 2,770,792 $ 2,230,008 $ 1,296,773 $ 3,526,781 $ 5,053,762 $ 2,137,930 $ 2,915,832 78 1 1 u I J ENTERPRISE FUNDS 1 Enterprise Funds are used to account for Borough operations that are financed and operated in a manner similar to private business enterprises. The intent of the Borough is that the costs (expenses, including depreciation) of providing these services to the general public on a continuing basis are financed or recovered primarily through user charges. J 1 11 ENTERPRISE FUNDS 1 The Municipal Solid Waste Collection and Disposal Fund accounts for the collection and disposal of solid waste and recycling services for the Kodiak Island Borough. t The Hospital Facilities Fund accounts for rents on the Borough -owned hospital; hospital related state revenue sharing; and other hospital related revenue. In turn, it purchases hospital equipment and makes debt service payments on hospital related debt. ' The 911 Service Fund accounts for funds collected from phone charges and pays for a 911 emergency system. The Kodiak Fisheries Research Center Fund accounts for rents and expenses on the Borough -owned Kodiak Fisheries Research Center. The three tenants: NOAA, Alaska Department of Fish & Game and University of Alaska, Fairbanks pay lease funds to participate in this multi- agency research facility committed to the preservation of the North Pacific marine ecosystem and resources. i f] 79 1 i Exhibit E -1 KODIAK ISLAND BOROUGH Enterprise Funds Combining Balance Sheet ' June 30, 2001 (with comparative totals for 2000) Municipal Kodiak Solid Waste Fisheries Collection and Hospital 911 Research Totals Assets Disposal Facilities Services Center 2001 2000 ' '- Current assets: Equity in central treasury $ 164,615 $ 86,043 $ 70,522 $ - 5 321,180 $ 333,191 Temporary investments 651,394 352,192 - 2,072,156 3,075,742 1,855,146 Accrued interest receivable 635 486 - 1,943 3,064 12,028 Customer receivables 241,162 - - 2,170 243,332 510,086 ' Accounts receivable - t State of Alaska 100,000 - - - 100,000 31,094 Due from other funds - - - - - 547,935 Inventories - 277,007 - - 277,007 277,007 l Total current assets 1,157,806 715,728 70,522 2,076,269 4,020,325 3,566,487 Fixed assets: Unclassified utility plant in service 2,200,347 - - - 2,200,347 2,205,383 Land and irrgrrovements - 401,046 - 1,021,998✓ 1,423,044 1,431,066 Buildings - 26,131,043 - 17,840,400✓ 43,971,443 44,040,019 ' Machinery and equipment 1,001,811 4,657,720 - 1,134,663 ✓ 6,794,194 7,543,525 Construction work -in- process 2,231,804 - - - 2,231,804 1,941,032 t 5,433,962 31,189,809 - 19,997,061 56,620,832 57,161,025 Less accumulated depreciation (1,227,162) (7,044,138) - (1,484,384) (9,755,684) (8,464,363) Net fixed assets 4,206,800 24,145,671 - 18,512,677 46,865,148 48,696,662 Total $ 5,364,606 $ 24,861,399 $ 70,522 $ 20,588,946 $ 50,885,473 $ 52,263,149 Liabilities and Fund Equities Current liabilities: i Accounts payable $ 154,775 $ - $ - $ 30,031 $ 184,806 $ 297,892 e Retainage payable - - - - - 78,750 Accrued expenses 46,336 - - 21,872 68,208 51,262 ' Current portion of note payable - 629,656 - - 629,656 592,013 fi Current portion of capital lease obligations - 277,720 - - 277,720 261,984 Due to other funds 100,000 - 1,101,840 1,201,840 920,291 Total current liabilities 301,111 907,376 - 1,153,743 2,362,230 2,202,192 Noncurrent liabilities: Notes payable 1,231,804 669,690 - - 1,901,494 2,231,467 Capital lease obligations - 797,306 - - 797,306 1,074,993 Long -term interfund borrowings - - - 7,370,000 7,370,000 7,595,000 Accrual for landfill closure and ' postclosure costs 2,122,151 - - - 2,122,151 2,066,758 Total liabilities 3,655,066 2,374,372 - 8,523,743 14,553,181 15,170,410 Fund equities: Contributions in aid of construction: s State of Alaska 3,413,636 - - 3,000,000 6,413,636 6,413,636 Other 19,990 17,956,116 - 8,920,540 26,896,646 26,896,646 I 3,433,626 17,956,116 - 11,920,540 33,310,282 33,310,282 Accumulated amortization (977,683) (1,197,075) - (794,702) (2,969,460) (1,921,164) , Net contributions in aid of construction 2,455,943 16,759,041 - 11,125,838 30,340,822 31,389,118 Contributed capital 5,166,717 - 215,486 5,382,203 5,382,203 Retained earnings (accumulated , deficits), unreserved (746,403) 561,269 70,522 723,879 609,267 321,418 Total fund equities 1,709,540 22,487,027 70,522 12,065,203 36,332,292 37,092,739 Total $ 5,364,606 $ 24,861,399 $ 70,522 $ 20,588,946 $ 50,885,473 $ 52,263,149 ' 79 1 I I � I KODIAK ISLAND BOROUGH Enterprise Funds Combining Statement of Revenues, Expenses, Transfers and Changes In Retained Earnings (Accumulated Deficits) Year ended June 30, 2001 (with comparative totals for 2000) Exhibit E -2 Municipal Operating revenues: Solid waste collection Solid waste disposal Solid Waste State sources - revenue sharing Customer charges Rents and royalties Collection and Donations 911 PKIMC gain Lease proceeds Disposal Other Services Operating expenses: 2001 Personnel services $ 1,718,904 $ Solid waste collection - $ Refuse disposal 1,718,904 Contracted services 889,885 Repairs and maintenance - Landfill closure and postclosure costs 889,885 Depreciation - Genera] and administration Medicaid refund - Telephone services 39,907 Recycling services - Miscellaneous 69,078 Support goods and services 69,078 Contributions KODIAK ISLAND BOROUGH Enterprise Funds Combining Statement of Revenues, Expenses, Transfers and Changes In Retained Earnings (Accumulated Deficits) Year ended June 30, 2001 (with comparative totals for 2000) Exhibit E -2 Municipal Operating income Other income (expenses): Intergovernmental revenue Solid Waste Interest income Interest expense Loss on sale of assets Collection and Net income (loss) 911 Transfer (to) from other funds: Operating transfers out to other funds Disposal Amortization of contributions in aid Services of construction 2001 Increase (decrease) in retained earnings $ 1,718,904 $ (Accumulated deficits) retained earnings, - $ at beginning of year 1,718,904 (Accumulated deficits) retained earnings, 889,885 at end of year KODIAK ISLAND BOROUGH Enterprise Funds Combining Statement of Revenues, Expenses, Transfers and Changes In Retained Earnings (Accumulated Deficits) Year ended June 30, 2001 (with comparative totals for 2000) Exhibit E -2 Municipal Kodiak Solid Waste Fisheries Collection and Hospital 911 Research Totals Disposal Facilities Services Center 2001 2000 $ 1,718,904 $ - $ - $ - $ 1,718,904 $ 1,697,403 889,885 - - - 889,885 975,557 - 39,907 - - 39,907 44,883 - - 69,078 - 69,078 63,695 - 1,484,927 1,484,927 1,494,342 - 103,400 - - 103,400 125,000 - 372,732 - - 372,732 217,662 - 720,000 - - 720,000 720,000 11,566 - - - 11,566 11,895 2,620,355 1,236,039 69,078 1,484,927 5,410,399 5,350,437 338,392 - - 195,050 533,442 465,852 1,250,607 - - - 1,250,607 1,176,729 297,992 - - - 297,992 298,831 285,132 - 30,000 41,088 356,220 349,613 40,781 - - 336,829 377,610 308,056 57,115 - - - 57,115 128,623 93,714 1,180,918 - 744,000 2,018,632 2,119,851 177,654 - - - 177,654 189,469 - - - - - 27,494 - - - - - 35,909 67,680 - - - 67,680 64,900 - - - 51,954 51,954 51,137 - - - 802 802 3,359 2,844 - - - 2,844 8,801 2,611,911 1,180,918 30,000 1,369,723 5,192,552 5,228,624 8,444 55,121 39,078 115,204 217,847 121,813 69,838 - - - 69,838 - 24,376 12,506 - 39,791 76,673 91,984 - (171,689) - - (171,689) (249,089) (13,493) (186,197) - (27,071) (226,761) (8,669) 89,165 (290,259) 39,078 127,924 (34,092) (43,961) - (191,030) - (535,325) (726,355) (549,763) 52,408 598,537 - 397,351 1,048,296 1,048,299 141,573 117,248 39,078 (10,050) 287,849 454,575 (887,976) 444,021 31,444 733,929 321,418 (133,157) $ (746,403) $ 561,269 $ 70,522 $ 723,879 S 609,267 b 321,418 0 Exhibit E -3 ' KODIAK ISLAND BOROUGH Enterprise Funds Combining Statement of Cash Flows Year ended June 30, 2001 (with comparative totals for 2000) 81 1 Municipal Kodiak a Solid Waste Fisheries Collection Hospital 911 Research Totals and Disposal Facilities Services Center 2001 2000 Operating income $ 8,444 $ 55,121 $ 39,078 $ 115,204 $ 217,847 $ 121,813 F Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 93,714 1,180,918 - 744,000 2,018,632 2,119,851 Loss on disposal of fixed assets - - - - - 8,669 Changes in assets and liabilities, net of effects of transfer of assets and liabilities from other funds: Customer receivables 46,147 217,699 - 2,908 266,754 (266,877) Due to/from other funds (51,368) (147,995) - 1,013,847 814,484 (344,506) Inventories - - - - - ( Accounts payable (13,910) (8,012) - (91,164) (113,086) 56,057 Deferred revenues - - - - - (60,000) Accrual for landfill closure and postclosure costs 55,393 - - - 55,393 127,358 Due to the City of Kodiak - - - - - - # Other accrued liabilities 343 16,603 16,946 472 Total adjustments 130,319 1,242,610 - 1,686,194 3,059,123 1,641,022 Net cash provided by operating activities 138,763 1,297,731 39,078 1,801,398 3,276,970 1,762,835 Cash flows from non-capital and i related financing activities: Operating transfers out to other funds (191,030) - (535,325) (726,355) (549,763) Net cash used in non - capital and related financing activities - (191,030) - (535,325) (726,355) (549,763) Cash flows from capital and related financing activities: } Acquisition and construction of capital assets (368,589) (109,886) - (13,222) (491,697) (898,109) Interest paid on notes payable, .; capital leases and interfund borrowing - (171,689) - - (171,689) (223,438) Principal paid on long -term interfund borrowing - - - (210,000) (210,000) (195,000) Proceeds from issuance of note payable 299,686 - - - 299,686 513,249 Principal payments on notes payable - (592,016) - - (592,016) (556,625) Principal payments on capital lease obligations - (261,951) - - (261,951) (308,401) Contributions in aid of construction - - - 265,662 Net cash provided by (used in) capital and related financing activities (68,903) (1,135,542) - (223,222) (1,427,667) (1,402,662) Cash flows from investing activities: Changes in restricted assets: Deductions from (additions to) restricted cash Deductions from restricted investments - - - - - - - - - 218,013 - Interest and dividends on investments 29,627 15,942 - 40,068 85,637 81,065 ' Net (decrease) increase in investments 2,495 98,942 (1,322,033) (1,220,596) 223,603 Net cash (used in) provided by investing activities 32,122 114,884 - (1,281,965) (1,134,959) 522,681 Net change in cash and cash equivalents 101,982 86,043 39,078 (239,114) (12,011) 333,091 Cash and cash equivalents, at beginning of year 62,633 - 31,444 239,114 333,191 100 Cash and cash equivalents, at end of year $ 164,615 $ 86,043 $ 70,522 $ - $ 321,180 $ 333,191 Noncash capital and related financing activities: Loss on disposal of fixed assets $ 13,493 $ 186,197 $ - $ 27,071 $ 226,761 $ - Residual equity transfers - - - - - (296,755) $ 13,493 $ 186,197 $ - $ 27,071 $ 226,761 $ (296,755) ' ® 81 1 Exhibit E -4 KODIAK ISLAND BOROUGH Municipal Solid Waste Collection and Disposal Fund Balance Sheets June 30, 2001 and 2000 Assets 2001 2000 Current assets: — 78,750 Equity in central treasury $ 164,615 $ 62,633 Temporary investments 651,394 653,889 Customer receivables 241,162 287,309 Accounts receivable – State of Alaska 100,000 31,094 Due from other funds — 147,935 Accrued interest receivable 635 5,886 1,157,806 1,188,746 Fixed assets: (977,683) (925,275) Unclassified utility plant in service 2,200,347 2,205,383 Equipment 1,001,811 1,031,461 Construction work -in- process 2,231,804 1,941,032 Less accumulated depreciation (1,227,162) (1,154,640) 4,206,800 4,023,236 Total $ 5,364,606 $ 5,211,982 Liabilities and Fund Equity Current liabilities: Accounts payable $ 154,775 $ 168,685 Retainage payable — 78,750 Due to other funds 100,000 299,303 Accrued expenses 46,336 45,993 Fund equity: 301,111 592,731 Noncurrent liabilities: Landfill closure and postclosure costs 2,122,151 2,066,758 Note payable 1,231,804 932,118 3,353,955 2,998,876 3,655,066 3,591,607 Fund equity: Contributions in aid of construction: State of Alaska 3,413,636 3,413,636 Other 19,990 19,990 3,433,626 3,433,626 Accumulated amortization (977,683) (925,275) Net contributions in aid of construction 2,455,943 2,508,351 Accumulated deficits, unreserved (746,403) (887,,976) Total fund equity 1,709,540 1,620,375 Total $ 5,364,606 $ 5,211,982 82 Exhibit E -5 KODIAK ISLAND BOROUGH Municipal Solid Waste Collection and Disposal Fund Statement of Revenues, Expenses, Transfers and Changes in Accumulated Deficits Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) Operating revenues: Solid waste collection Solid waste disposal Other Operating expenses: Personnel services Solid waste collection Refuse disposal Contracted services Repairs and maintenance Landfill closure and postclosure costs Depreciation General and administration Contributions Recycling services Operating income Other income: Intergovernmental revenue Interest income Loss on disposal of fixed assets Net income (loss) Amortization of contributions in aid of construction Increase in retained earnings Accumulated deficits, at beginning of year Accumulated deficits, at end of year 83 1 2001 Variance - favorable 2000 Budget Actual (unfavorable) Actual $ 1,610,900 $ 1,718,904 $ 108,004 $ 1,697,403 860,500 889,885 29,385 975,557 - 11,566 11,566 11,895 2,471,400 2,620,355 148,955 2,684,855 335,380 338,392 (3,012) 327,962 1,119,100 1,250,607 (131,507) 1,176,729 34,850 297,992 (263,142) 298,831 319,000 285,132 33,868 300,217 40,500 40,781 (281) 29,005 287,408 57,115 230,293 128,623 96,670 93,714 2,956 98,160 235,900 177,654 58,246 182,957 - 2,844 (2,844) 8,801 70,000 67,680 2,320 64,900 2,538,808 2,611,911 (73,103) 2,616,185 (67,408) 8,444 (75,852) 68,670 - 69,838 - - 15,000 24,376 9,376 24,726 - (13,493) 13,493 (25,651) $ (52,408) 89,165 $ (52,983) 67,745 52,408 52,409 141,573 120,154 (887,976) (1,008,130) $ (746,403) $ (887,976) 83 1 Exhibit E -6 KODIAK ISLAND BOROUGH Municipal Solid Waste Collection and Disposal Fund Statements of Cash Flows Years ended June 30, 2001 and 2000 Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Changes in assets and liabilities, net of effects from the transfer of assets and liabilities from other funds: Customer receivables Due from other funds Due to other funds Accounts payable Accrual for landfill closure and postclosure costs Other accrued liabilities Total adjustments Net cash provided by operating activities Cash flows from capital and related financing activities: Acquisition and construction of capital assets Contributions in aid of construction Proceeds from issuance of note payable Net cash provided by (used in) capital and related financing activities Cash flows from investing activities: Purchase of investments Interest and dividends received on investments Net cash provided by (used in) investing activities Net change in cash and cash equivalents Cash and cash equivalents, at beginning of year Cash and cash equivalents, at end of year Noncash capital and related financing activities: Residual equity transfers Loss on disposal of fixed assets 2001 2000 $ 8,444 $ 68,670 93,714 98,160 46,147 (44,100) 147,935 (86,916) (199,303) 2,547 (13,910) 5,243 55,393 127,358 343 758 130,319 103,050 138,763 171,720 (368,589) (704,219) — 265,662 299,686 513,249 (68,903) 74,692 2,495 29,627 32,122 101,982 62,633 $ 164,615 $ (202,719) 18,840 (183,879) 62,533 100 62,633 $ — $ (296,755) 13,493 — $ 13,493 $ (296,755) Exhibit E -7 KODIAK ISLAND BOROUGH Hospital Facilities Fund Balance Sheets June 30, 2001 and 2000 Assets 2001 2000 Current assets: 4,657,720 5,353,242 Equity in central treasury $ 86,043 $ — Temporary investments 352,192 451,134 Customer receivables — 217,699 Accrued interest receivable 486 3,922 Inventories 277,007 277,007 Current liabilities: 715,728 949,762 Fixed assets: Buildings 26,131,043 26,199,619 Machinery and equipment 4,657,720 5,353,242 Land and improvements 401,046 409,068 Less accumulated depreciation (7,044,138) (6,559,029) 24,145,671 25,402,900 Total $ 24,861,399 $ 26,352,662 Liabilities and Fund Equity Current liabilities: Accounts payable $ — $ 8,012 Due to other funds — 147,995 Current portion of long -term debt 629,656 592,013 Current portion of capital lease obligations 277,720 261,984 907,376 1,010,004 Long -term debt 669,690 1,299,349 Capital lease obligations 797,306 1,074,993 1,466,996 2,374,342 2,374,372 3,384,346 Fund equity: Contributions in aid of construction Other 17,956,116 17,956,116 Accumulated amortization (1,197,075) (598,538) 16,759,041 17,357,578 Contributed capital 5,166,717 5,166,717 Retained earnings, unreserved 561,269 444,021 Total fund equity 22,487,027 22,968,316 Total $ 24,861,399 $ 26,352,662 1 1 i 85 1 ' Exhibit E -8 KODIAK ISLAND BOROUGH ' Hospital Facilities Fund Statement of Revenues, Expenses, Transfers and ' Changes in Retained Earnings Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) 2001 ' Variance favorable 2000 Budget Actual (unfavorable) Actual Operating revenues: 1 State sources - revenue sharing $ 40,000 $ 39,907 $ (93) $ 44,883 Lease proceeds 720,000 720,000 - 720,000 Donations 140,000 103,400 (36,600) 125,000 PKIMC gain 240,000 372,732 132,732 217,662 ' 1,140,000 1,236,039 96,039 1,107,545 Operating expenses: Personnel services - - 63 Contracted services _ 9,269 Depreciation 1,308,120 1,180,918 127,202 1,274,984 General and administration 85,000 - 85,000 6,512 Medicaid refund - - - 27,494 1,393,120 1,180,918 202,870 1,318,322 Operating (loss) income (253,120) 55,121 298,909 (210,777) 1 Other income (expenses): Interest income 15,000 12,506 (2,494) 21,933 Interest expense (171,690) (171,689) 1 (223,438) Loss on disposal of fixed assets 2,300 (186,197) (188,497) (8,669) Income before operating transfers $ (407,510) (290,259) $ 107,919 (420,951) Other financing sources (uses): 1 Operating transfers out to other funds (191,030) - Net other financing sources (uses) (191,030) - Net loss (481,289) (420,951) Amortization in contributions in aid of construction 598,537 598,538 ' Increase in retained earnings 117,248 177,587 Retained earnings, at beginning of year 444,021 266,434 ' Retained earnings, at end of year $ 561,269 $ 444,021 :. Exhibit E -9 KODIAK ISLAND BOROUGH Hospital Facilities Fund Statements of Cash Flows Years ended June 30, 2001 and 2000 Operating (loss) income Adjustments to reconcile operating (loss) income to net cash provided by operating activities: Depreciation Loss on disposal of fixed assets Changes in assets and liabilities: Customer receivables Due from other funds Inventories Accounts payable Due to other funds Deferred revenues Total adjustments Net cash provided by operating activities Cash flows from non - capital and related financing activities: Operating transfers out to other funds Cash flows from capital and related financing activities: Acquisition and construction of capital assets Interest paid on note payable and capital leases Principal payments on note payable Principal payments on capital lease obligations Net cash used in capital and related financing activities Cash flows from investing activities: Interest and dividends paid on investments Maturities of investments Deductions from restricted cash Net cash provided by investing activities Net change in cash and cash equivalents Cash and cash equivalents, at beginning of year Cash and cash equivalents, at end of year Noncash capital and related financing activities: Loss on disposal of fixed assets 2001 2000 55,121 $ (210,777) 1,180,918 1,274,984 — 8,669 217,699 (217,699) — 18,790 — (2) (8,012) 8,012 (147,995) (30,181) — (60,000) 1,242,610 1,002,573 1,297,731 791,796 (191,030) — (109,886) (133,810) (171,689) (223,438) (592,016) (556,625) (261,951) (308,401) (1,135,542) (1,222,274) 15,942 18,011 98,942 194,454 — 218,013 114,884 430,478 86,043 — $ 86,043 $ — $ 186,197 $ — 87 Exhibit E -10 KODIAK ISLAND BOROUGH 911 Services Fund Balance Sheets June 30, 2001 and 2000 Assets Assets: Equity in central treasury Fund Equity Fund Equity: Retained earnings, unreserved 2001 2000 $ 70,522 $ 31,444 $ 70,522 $ 31,444 :: Exhibit E -11 KODIAK ISLAND BOROUGH 911 Services Fund Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings Budget and Actual Year ended June 30, 2001 (with comparative totals for 2000) Operating revenues: Customer charges Operating expenses: Telephone services Operating income Retained earnings, at beginning of year Retained earnings, at end of year 2001 Variance- favorable 2000 Budget Actual (unfavorable) Actual $ 80,000 $ 69,078 $ (10,922) $ 63,695 80,000 30,000 50,000 35,909 $ — 39,078 $ 39,078 27,786 31,444 $ 70,522 3,658 $ 31,444 Exhibit E -12 KODIAK ISLAND BOROUGH 911 Services Fund Statements of Cash Flows Years ended June 30, 2001 and 2000 Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Changes in assets and liabilities: Due from other funds Accounts payable Total adjustments Net cash provided by 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 2001 2000 $ 39,078 $ 27,786 — 11,888 — (8,230) — 3,658 39,078 31,444 39,078 31,444 31,444 — $ 70,522 $ 31,444 90 Exhibit E -13 KODIAK ISLAND BOROUGH Kodiak Fisheries Research Center Fund Balance Sheets June 30, 2001 and 2000 Assets 2001 2000 Current assets: 1,134,663 1,158,822 Equity in central treasury $ — $ 239,114 Temporary investments 2,072,156 750,123 Customer receivables 2,170 5,078 Due from other funds — 400,000 Accrued interest receivable 1,943 2,220 Current liabilities: 2,076,269 1,396,535 Fixed assets: Buildings 17,840,400 17,840,400 Machinery and equipment 1,134,663 1,158,822 Land and improvements 1,021,998 1,021,998 Less accumulated depreciation (1,484,384) (750,694) 18,512,677 19,270,526 Total $ 20,588,946 $ 20,667,061 Liabilities and Fund Equity Current liabilities: Accounts payable $ 30,031 $ 121,195 Accrued expenses 21,872 5,269 Due to other funds 1,101,840 472,993 1,153,743 599,457 Noncurrent liabilities: Long -term interfund borrowings 7,370,000 7,595,000 8,523,743 8,194,457 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 (794,702) (397,351) 11,125,838 11,523,189 Contributed capital 215,486 215,486 Retained earnings, unreserved 723,879 733,929 Total fund equity 12,065,203 12,472,604 Total $ 20,588,946 $ 20,667,061 31 1 158,985 (20,155) KODIAK ISLAND BOROUGH 1 Kodiak Fisheries Research Center Fund (5,025) Statement of Revenues, Expenses, Transfers and 1 Changes in Retained Earnings Budget and Actual 37,446 Year ended June 30, 2001 (with comparative totals for 2000) 1 744,000 Operating revenues: ' Rents and royalties Operating expenses: Personnel services ' Employee benefits Miscellaneous Depreciation Cleaning and janitorial Heating Electrical Plumbing Air conditioning Elevators Support goods and services Operating income Other income Interest income Loss on disposal of fixed assets Income before operating transfers 1 Other financing sources (uses): Operating transfers out to other funds Net loss 1 Amortization of contributions in aid of construction Increase (decrease) in retained earnings Retained earnings, at beginning of year Retained earnings, at end of year 2001 Variance favorable Budget Actual (unfavorable) $ 1,492,370 $ 1,484,927 $ (7,443) $ Exhibit E -14 2000 1,494,342 138,830 158,985 (20,155) 103,742 31,040 36,065 (5,025) 34,085 89,400 51,954 37,446 51,137 746,770 744,000 2,770 746,707 51,000 41,088 9,912 40,127 95,000 70,375 24,625 67,446 185,500 154,590 30,910 162,630 60,700 107,626 (46,926) 40,478 11,000 2,438 8,562 7,899 2,000 1,800 200 598 3,150 802 2,348 3,359 1,414,390 1,369,723 44,667 1,258,208 77,980 115,204 37,224 236,134 60,000 39,791 (20,209) 45,325 - (27,071) (27,071) $ 137,980 127,924 $ (10,056) 281,459 (535,325) (407,401) 397,351 (10,050) 733,929 $ 723,879 (549,763) (268,304) 397,352 129,048 604,881 $ 733,929 92 Exhibit E -15 KODIAK ISLAND BOROUGH Kodiak Fisheries Research Center Fund Statements of Cash Flows Years ended June 30, 2001 and 2000 Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Changes in assets and liabilities: Customer receivables Due from other funds Accounts payable Accrued expenses Due to other funds Total adjustments Net cash provided by operating activities Cash flows from noncapital and related financing activities: Operating transfers out to other funds Net cash used in noncapital financing activities Cash flows from capital and related financing activities: Acquisition and construction of capital assets Principle paid on long -term interfund borrowing Net cash used in capital and related financing activities Cash flows from investing activities: Net increase (decrease) in investments Interest received Net cash provided by (used in) investing activites 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: Loss in disposal of fixed assets 2001 $ 115,204 $ 744,000 746,707 2,908 400,000 (91,164) 16,603 613,847 1,686,194 1,801,398 (5,078) (348,454) 51,032 (286) 87,820 531,741 767,875 (535,325) (549,763) (535,325) (549,763) (13,222) (60,080) (210,000) (195,000) (223,222) (255,080) (1,322,033) 231,868 40,068 44,214 (1,281,965) 276,082 (239,114) 239,114 239,114 — $ — $ 239,114 $ 27,071 $ 2000 236,134 93 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. 1 Exhibit F -1 KODIAK ISLAND BOROUGH General Fixed Assets Account Group Schedules of Fixed Assets by Source June 30, 2001 and 2000 General fixed assets: Land Buildings Improvements other than buildings Machinery and equipment Construction work -in- progress Total Investment in general fixed assets: Capital Projects Funds: General obligation bonds Federal grants State grants General Fund revenues Special Revenue Fund revenues Contributions from State of Alaska Contributions from Federal Government Contributions from others Total 2001 2000 $ 5,362,188 $ 5,434,991 88,783,292 88,811,586 3,700,998 3,731,098 1,117,298 1,790,739 2,357,374 1,683,416 $ 101,321,150 $ 101,451,830 $ 57,751,151 $ 57,755,638 4,314,864 19,471,040 9,848,382 900,239 3,730,279 1,259,300 4,045,895 4,316,206 19,327,397 9,830,144 1,125,780 3,786,861 1,259,300 4,050,504 $ 101,321,150 $ 101,451,830 0� 1 Exhibit F -2 I KODIAK ISLAND BOROUGH General Fixed Assets Account Group Schedules of General Fixed Assets by Function and Activity As of June 30, 2001 95 Improvements Machinery other than and Total Land Buildings buildings equipment Staff agencies: Finance department $ 24,166 $ — $ — $ — $ 24,166 ✓ 249,092 ✓ Management information systems 249,092 — — — Assessing department 24,150 — — — 24,150 ✓ Community development department 29,844 — — — — 29,844✓ 31,936 / Engineering/Facilities department 31,936 — — Land sales 7,967 — — — — 7,967✓ 94,503✓ General administration 94,503 — — Total staff agencies 461,658 — — — 461,658 Public safety: Emergency preparedness 222,184 — 100,000✓ — 122,184✓ Women Bay Service Area 629,665 — 425,655✓ — 204,010✓ Fire Protection Area No. 1 1,093,618 241,137✓ 612,686✓ — 239,795✓ Total public safety 1,945,467 241,137 1,138,341 — 565,989 Schools 84,070,183 — 81,240,673- 231,560 2,829,510- — — — Teacher housing General government buildings 231,560 5,261,718 — — 5,172,718 ✓ 29,349 59,651✓ Building sites 391,001 391,001✓ — — — Playgrounds 710,239 — — 1,000,000✓ 710,239✓ 131,900✓ — 30,000 Other 1,161,900 — 91,826,601 391,001 87,644,951 3,700,998 89,651 Undeveloped land 4,730,050 4,730,050 — — — 98,963,776 5,362,188 88,783,292 3,700,998 1,117,298 Construction work -in- progress 2,357,374 — 1,891,627 — 465,747✓ Total general fixed assets $ 101,321,150 $ 5,362,188 $ 90,674,919 $ 3,700,998 $ 1,583,045 95 96 Exhibit F -3 ' KODIAK ISLAND BOROUGH General Fixed Assets Account Group Schedules of General Fixed Assets by Function and Activity ' For the year ended June 30, 2001 General fixed General fixed assets at assets at July 1, 2000 Additions Deletions June 30, 2001 ' Staff agencies: Borough mayor $ 20,420 $ - $ 20,420 $ - Borough clerk 40,637 - 40,637 Finance department 120,487 - 96,321 24,166 Management information systems 351,617 - 102,525 249,092 Assessing department 65,020 - 40,870 24,150 ' Community development department 101,804 - 71,960 29,844 Engineering/Facilities department 83,048 51,112 31,936 Land sales 19,166 - 11,199 7,967 General administration 111,869 - 17,366 94,503 Mental Health Center 532,623 - 532,623 - Child Care Assistance Program 2,265 - 2,265 - Coastal management 3,685 - 3,685 - Total staff agencies 1,452,641 - 990,983 461,658 Public safety: Emergency preparedness 227,598 - 5,414 222,184 Fire Protection Area No. 1 1,152,915 - 59,297 1,093,618 Womens Bay Fire District 651,422 14,305 36,062 629,665 Woodland Acres Service Area 3,014 - 3,014 - Kodiak Transit Authority 26,460 - 26,460 - Total public safety 2,061,409 14,305 130,247 1,945,467 Schools 84,078,538 - 8,355 84,070,183 ' Teacher housing 238,792 7,232 231,560 General government buildings 4,867,291 438,911 44,484 5,261,718 Building sites 404,403 - 13,402 391,001 Playgrounds 713,989 3,750 710,239 Other 1,161,900 1,161,900 91,464,913 438,911 77,223 91,826,601 ' Undeveloped land 4,789,451 59,401 4,730,050 99,768,414 453,216 1,257,854 98,963,776 ' Construction work -in- progress 1,683,416 673,978 20 2,357,374 Total general fixed assets $ 101,451,830 $ 1,127,194 $ 1,257,874 $ 101,321,150 96 1 r] 1 GENERAL LONGTERM DEBT ACCOUNT GROUP The General Long Term Debt Account Group is a self - balancing account group which is used to account for unmatured ' general long -term debt and other obligations backed by the full faith and credit of the Borough except those long -term obligations which are required to be accounted for in the proprietary fund types and ' trust funds. 1 1 Exhibit G -1 KODIAK ISLAND BOROUGH General Long -Term Debt Account Group Schedules of Long -Term Debt Years ended June 30, 2001 and 2000 2001 2000 Amount available and to be provided for the payment of general long -term debt: Amount available in Debt Service Fund: General obligation bonds $ 344,942 $ 272,651 Accrued annual leave 113,983 132,006 458,925 404,657 Amount to be provided: General obligation bonds Judgments Environmental Protection Agency loan Alaska Department of Environmental Conservation loans Total General Obligation Bonds: 1989 refunding 1993 bonds 1994 bonds 1998 refunding 2000 Series E bonds 2000 Series F bonds Other long -term debt: Judgment payable Environmental Protection Agency loan Alaska Department of Environmental Conservation loans Accrued annual leave Total 17,345,058 16,752,349 1,350,000 1,350,000 72,919 93,749 105,272 105,272 18,873,249 18, 301, 370 $ 19,332,174 $ 18,706,027 4,505,000 1,030,000 9,495,000 1,485,000 1,175,000 17,690,000 1,155,000 5,295,000 1,030,000 9,545,000 17,025,000 1,350,000 1,350,000 72,919 93,749 105,272 105,272 113,983 132,006 1,642,174 1,681,027 $ 19,332,174 $ 18,706,027 97 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 H -1 SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY AS OF JUNE 30, 2001 Annual principal and interest requirements on General Obligation Refunding and Construction Bonds. Year Principal Interest Total 2002 $ 1,075,000 $ 865,660 $ 1,940,660 2003 1,120,000 780,993 1,900,993 2004 1,180,000 727,691 1,907,691 2005 1,235,000 669,816 1,904,816 2006 1,295,000 607,786 1,902,786 2007 1,360,000 515,079 1,875,079 2008 1,440,000 469,156 1,909,156 2009 1,505,000 402,606 1,907,606 2010 1,575,000 332,886 1,907,886 2011 1,645,000 259,736 1,904,736 2012 1,360,000 183,180 1,543,180 2013 1,420,000 124,700 1,544,700 2014 1,480,000 65,640 1,545,640 $ 17,690,000 $ 6,004,928 $ 23,694,928 KODIAK ISLAND BOROUGH GENERAL. OBLIGATION BONDS, 1993 SERIES A RETIREMENT SCHED Exhibit H -2 1993 Bond Issue This issue, dated November 15, 1993, was issued as registered bonds under a book entry system registered in the name of Cede & Company, as Nominee of The Depository Trust Company, New York, New York, the securities depository for the 1993 Bonds. This issue was marketed by John Nuveen & Co. Legal opinion was rendered by bond council, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage, Alaska. These bonds were issued to build the Northstar Elementary School, remodel the Ouzinkie School, and remodel and expand the Kodiak Island Hospital. Bonds are payable at First Trust N.A., St. Paul, Minnesota. .. Interest Principal Interest Fiscal Interest due due due year rate August 15 February 15 February 15 Total 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 $ 326,559 $ 4,505,000 $ 326,559 $ 5,158,118 .. KODIAK ISLAND BOROUGH Exhibit H -3 GENERAL OBLIGATION BONDS, 1994 SERIES A RETIREMENT SCHEDULE 1994 Bond Issue This issue, dated November 15, 1993, was issued as registered bonds under a book entry system registered in the name of Cede & Company, as Nominee of The Depository Trust Company, New York, New York, the securities depository for the 1994 Bonds. This issue was marketed by John Nuveen & Co. Legal opinion was rendered by bond council, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage, Alaska. These bonds were issued to build the Northstar Elementary School, remodel the Ouzinkie School, and remodel and expand the Kodiak Island Hospital. Bonds are payable at First Trust N.A., St. Paul, Minnesota. Interest Principal Interest Fiscal Interest due due due year rate August 15 February 15 February 15 Total 2002 5.4% $ 27,810 $ - $ 27,810 $ 55,620 2003 5.4% 27,810 - 27,810 55,620 2004 5.4% 27,810 - 27,810 55,620 2005 5.4% 27,810 - 27,810 55,620 2006 5.4% 27,810 - 27,810 55,620 2007 5.4% - 1,030,000 27,810 1,057,810 $ 139,050 $ 1,030,000 $ 166,860 $ 1,335,910 11 KODIAK ISLAND BOROUGH Exhibit H -4 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. 101 Interest Principal Interest Fiscal Interest due due due year rate August 15 February 15 February 15 Total 2002 3.75% $ 203,523 $ 50,000 $ 203,523 $ 457,046 2003 3.75% 202,585 50,000 202,585 455,170 2004 4.00% 201,648 55,000 201,648 458,296 2005 4.00% 200,548 55,000 200,548 456,096 2006 4.00% 199,448 60,000 199,448 458,896 2007 4.00% 198,248 60,000 198,248 456,496 2008 4.30% 197,048 1,150,000 197,048 1,544,096 2009 4.30% 172,323 1,200,000 172,323 1,544,646 2010 4.30% 146,523 1,250,000 146,523 1,543,046 2011 4.30% 119,648 1,305,000 119,648 1,544,296 2012 4.30% 91,590 1,360,000 91,590 1,543,180 2013 4.30% 62,350 1,420,000 62,350 1,544,700 2014 4.30% 32,820 1,480,000 32,820 1,545,640 $ 2,028,302 $ 9,495,000 $ 2,028,302 $ 13,551,604 101 C I KODIAK ISLAND BOROUGH GENERAL OBLIGATION BOND, 2000 SERIES E RETIREMENT SCHEDULE Exhibit H -5 2000E Bond Issue This issue, dated December 12, 2000, 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 2000 Series E Bond. This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council, Wholforth, Vassar, Johnson & Brecht of Anchorage, Alaska. This bond was issued to repair the high school roof. The high school roof repair is scheduled to be completed by the fall of 2001. 102 Interest Principal Interest Fiscal Interest due due due year rate August 01 February 01 February 01 Total 2002 4.75% $ 51,502 $ 120,000 $ 36,213 $ 207,715 2003 4.75% 33,363 125,000 33,363 191,725 2004 4.75% 30,394 130,000 30,394 190,788 2005 4.75% 27,306 135,000 27,306 189,613 2006 4.75% 24,100 145,000 24,100 193,200 2007 4.88% 20,656 150,000 20,656 191,313 2008 5.00% 17,000 160,000 17,000 194,000 2009 5.00% 13,000 165,000 13,000 191,000 2010 5.00% 8,875 175,000 8,875 192,750 2011 5.00% 4,500 180,000 4,500 189,000 $ 230,696 $1,485,000 $ 215,406 $ 1,931,102 102 KODIAK ISLAND BOROUGH GENERAL OBLIGATION BOND, 2000 SERIES F RETIREMENT SCHEDULE Exhibit H -6 2000F Bond Issue This issue, dated December 12, 2000, 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 2000 Series F Bond. This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council, Wohlforth, Vassar, Johnson & Brecht of Anchorage, Alaska. This bond was issued to upgrade Peterson Elementary. The Peterson Project has already been completed. 103 Interest Principal Interest Fiscal Interest due due due year rate August 01 February 01 February 01 Total 2002 8.88% $ 63,372 $ 80,000 $ 44,559 $ 187,931 2003 9.00% 41,009 85,000 41,009 167,018 2004 9.00% 37,184 95,000 37,184 169,368 2005 8.35% 32,909 105,000 32,909 170,818 2006 6.90% 28,525 110,000 28,525 167,050 2007 7.00% 24,730 120,000 24,730 169,460 2008 7.00% 20,530 130,000 20,530 171,060 2009 7.05% 15,980 140,000 15,980 171,960 2010 7.10% 11,045 150,000 11,045 172,090 2011 7.15% 5,720 160,000 5,720 171,440 $ 281,004 $ 1,175,000 $ 262,190 $ 1,718,194 103 1 s 1 1 I STATISTICAL SECTION Statistical Tables provide report users with a better historical perspective in assessing current financial status and trends of the Borough. t KODIAK ISLAND BOROUGH TABLE 1 KODIAK, ALASKA GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (a) LAST TEN FISCAL YEARS Fiscal General Health and Other year government sanitation Education (b) transfers Total 1992 $2,739,848 $706,251 $3,027,510 $500,000 $6,973,609 1993 2,955,824 674,032 3,374,721 137,962 7,142,539 1994 2,555,349 690,430 3,615,695 322,228 7,183,702 1995 2,681,472 1,442,644 3,861,967 164,649 8,150,732 1996 2,941,453 1,390,307 4,678,830 267,594 9,278,184 1997 2,664,204 1,393,016 5,083,942 250,000 9,391,162 1998 2,848,474 1,506,992 6,466,321 571,296 11,393,083 1999 2,733,502 1,179,420 7,044,970 - 10,957,892 2000 2,540,354 730,888 6,500,341 55,905 9,827,488 2001 2,993,718 594,072 6,824,276 323,299 10,735,365 (a) Includes general fund only. (b) Includes operating transfers for this function Source: Borough general ledger 104 KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL REVENUES BY SOURCE LAST TEN FISCAL YEARS TABLE 2 (a) Includes general fund only. Source: Borough general ledger Inter- Licenses, Fiscal governmental permits year Taxes and fees 1992 $ 4,067,934 $ 212,936 $ 1993 4,481,158 433,825 1994 4,674,382 457,895 1995 5,976,914 928,079 1996 5,693,539 285,100 1997 5,582,037 108,483 1998 7,589,595 86,138 1999 7,694,387 86,523 2000 8,057,781 92,609 2001 8,135,184 95,129 (a) Includes general fund only. Source: Borough general ledger Inter- governmental Investment Operating Miscellaneous revenue income transfers Revenue Total 2,450,339 $ 367,551 $ 81,670 $ - $ 7,180,430 1,991,730 289,570 - - 7,196,283 2,053,750 291,046 - - 7,477,073 1,633,162 659,794 - - 9,197,949 2,396,704 452,196 - - 8,827,539 2,396,272 371,414 9,672 - 8,467,878 2,739,075 333,243 - - 10,748,051 2,055,803 238,515 32,632 - 10,107,860 1,770,038 358,351 129,829 - 10,408,608 2,135,483 583,633 18,154 44,945 11,012,528 105 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS TABLE 3 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 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 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 2001 8,164,127 7,912,859 96.9 204,458 8,117,316 99.4 364,044 4.5 Source: Borough general ledger 106 KODIAK ISLAND BOROUGH KODIAK, ALASKA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YE ARS TABLE 4 800,000,000 600,000,000 400,000,000 200,000,000 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 107 Ratio of total assessed to REAL PROPERTY PERSONAL PROPERTY TOTAL total Fiscal Assessed Full value Assessed Full value Assessed Full value full value year value determination value determination value determination determination 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 594,870,287 613,787,700 120,828,748 322,947,400 715,699,035 936,735,100 76.40 2001 626,906,341 614,419,200 121, 336,548,600 748,755,533 950,967,800 78.74 Source: Borough assessment and tax records and State full value determination Last Ten Years Assessed Values 800,000,000 600,000,000 400,000,000 200,000,000 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 107 KODIAK ISLAND BOROUGH TABLE 5 KODIAK, ALASKA PROPERTY TAX RATES AND CONTRIBUTIONS TO THE SCHOOL DISTRICT (PER $100 OF ASSESSED VALUE) LAST TEN FISCAL YEARS PROPERTY TAX RATES CONTRIBUTIONS TO THE SCHOOL DISTRICT Fiscal Assessed Amount of Woodland Year Value Contribution Equivalent 1992 $ 516,304,869 $ 3,620,202 7.01 1993 Acres 3,864,691 6.91 1994 591,436,473 3,990,847 6.75 1995 KIB City Street ROAD SERVICES AREAS FIRE AREAS 7.14 Fiscal General of Lighting Monashka Service Bay View Womens Service Womens Year Fund Kodiak Area Bay District 1 Road Bay Area No. 1 Bay 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 2001 9.25 2.00 0.00 1.50 1.00 1.00 2.00 1.50 1.25 CONTRIBUTIONS TO THE SCHOOL DISTRICT Fiscal Assessed Amount of Millage Year Value Contribution Equivalent 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 2001 748,755,533 6,913,926 9.23 Source: Borough ordinance and assessment 108 KODIAK ISLAND BOROUGH TABLE 6 KODIAK, ALASKA TEN LARGEST PROPERTY TAXPAYERS YEAR ENDED JUNE 30, 2001 Totals 14.8% $ 110,842,349 $ 1,152,536 14.1% Source: Borough tax records. 109 Percentage Percentage of total Net of total assessed Assessed taxes taxes value valuation levied levied International Seafoods 2.2% $ 16,179,778 $ 173,885 2.1% Western Alaska Fisheries 1.8% 13,404,955 136,665 1.7% Trident Seafood Corp 1.8% 13,485,635 130,265 1.6% T.U. of the Northland 1.5% 11,358,110 117,722 1.4% Alaska Pacific Seafoods 1.4% 10,617,111 109,417 1.3% King Crab /Ocean Beauty 1.4% 10,296,869 103,597 1.3% CSX Lines LLC 1.2% 9,169,017 99,156 1.2% Safeway /MBPA 1.2% 8,683,466 98,963 1.2% Kodiak Fishmeal Co. 1.2% 8,987,182 97,642 1.2% Walmart 1.2% 8,660,226 85,225 1.0% Totals 14.8% $ 110,842,349 $ 1,152,536 14.1% Source: Borough tax records. 109 KODIAK ISLAND BOROUGH ' KODIAK, ALASKA RATIO OF NET GENERAL BONDED DEBT� LAST TEN FISCAL YEARS TABLE 7 I I Ratio ' of net Less Debt bonded debt Fiscal Assessed Gross Service Net bonded to assessed ' year Population value bonded debt Fund debt value 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 (a) 640,462,576 23,205,000 1,759,644 21,445,356 3.3 1997 14,058 (a) 654,134,651 21,660,000 549,569 21,110,431 3.2 ' (a) 1998 14,181 681,342,892 20,020,000 432,942 19,587,058 2.9 ' 1999 13,848 (a) 686,856,392 18,910,000 340,159 18,569,841 2.7 2000 13,989 (a) 715,699,035 17,025,000 272,651 16,752,349 2.3 ' 2001 14,028 (a) 748,755,533 17,690,000 344,942 17,345,058 2.3 Sources: Information obtained from assessment records and Borough general ledger except as otherwise noted. ' (a) Information obtained from State of Alaska, Department of Community and Regional Affairs, Certified Population for Revenue Sharing Program. ' 110 Net bonded debt per capita $363 298 1,560 1,515 1,393 1,502 1,381 1,341 1,198 1,236 KODIAK ISLAND BOROUGH KODIAK, ALASKA COMPUTATION OF DIRECT AND OVERLAPPING DEBT NNE 30, 2000 TABLE 8 Kodiak Island Borough: General obligation bonds City of Kodiak: Revenue bonds Total Percentage Kodiak Island Net debt applicable to this Borough outstanding governmental share of (a) unit (b) debt (c) $ 17,345,058 100% $ 17,345,058 3,955,000 100% 3,955,000 $ 21,300,058 $ 21,300,058 (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. KODIAK ISLAND BOROUGH KODIAK, ALASKA COMPUTATION OF LEGAL DEBT MARGIN JUNE 30, 2000 TABLE 9 Assessed value Plus exempt property Total $ 748,755,533 2,475,199,399 $ 3,223,954,932 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. 112 KODIAK ISLAND BOROUGH TABLE 10 KODIAK, ALASKA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES AND TRANSFERS LAST TEN FISCAL YEARS (a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of term bonds. Source: Borough general ledger and debt documents 113 Total Ratio of general debt service Fiscal Interest Total debt expenditures to general year Principal (a) and fees service and transfers expenditures 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 1,905,833 858,164 2,763,997 9,827,488 28.1 2001 2,015,834 746,994 2,762,828 10,735,365 25.7 (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 113 KODIAK ISLAND BOROUGH TABLE 11 KODIAK, ALASKA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Fiscal School Unemployment year Population (a) enrollment (b) rate (c) 1992 15,535 2,602 5.1 1993 15,535 2,632 6.0 1994 15,245 2,802 9.4 1995 15,575 2,773 11.2 1996 15,400 2,793 13.7 1997 14,058 2,809 7.7 1998 14,181 2,897 8.2 1999 13,848 2,815 6.8 2000 13,989 2,798 7.2 2001 14,028 2,750 9.5 Sources: (a) State of Alaska, DCRA certified population. (b) Kodiak Island Borough School District. (c) Department of Labor, Anchorage. 114 , KODIAK ISLAND BOROUGH TABLE 12 KODIAK, ALASKA , PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS CONSTRUCTION Commercial Residential Deposits PROPERTY VALUE* ' Fiscal No. of No. of in local year permits Value permits Value banks Commercial Residential Nontaxable 1992 48 $ 3,748,125 163 $ 9,201,613 $ 103,679,201 $ 130,469,150 $ 323,060,260 $ 2,002,661,025 1993 55 3,359,264 143 6,218,434 94,838,546 134,637,371 333,203,846 2,027,200,278 1994 45 2,947,984 146 5,037,061 98,970,444 148,714,050 350,458,405 2,271,468,957 1995 59 6,055,321 159 4,305,352 103,838,289 148,156,300 367,798,350 2,354,550,201 , 1996 41 3,862,599 160 7,864,907 108,116,331 155,755,000 382,872,500 2,404,513,974 1997 36 1,559,938 112 6,262,439 108,926,259 157,911,064 391,545,900 2,404,872,414 1998 39 16,676,612 149 8,103,624 107,973,700 161,787,264 411,955,734 2,420,596,952 1999 51 6,784,879 141 8,222,313 123,206,000 160,921,064 416,630,645 2,420,601,099 2000 54 2,720,259 156 9,086,074 120,465,733 172,709,507 422,160,780 2,475,199,399 2001 33 1,379,673 198 11,501,804 119,637,923 193,882,996 433,023,355 2,475,199,399 ' *Assessed value. Source: Borough assessing records, City of Kodiak building department and local bankers. ' 115 , 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. Inner Inns 1994 1995 Land area - square miles 7,130 7,130 Miles of improved street 21.5 21.5 Miles of sanitary sewers 16.0 16.7 Number of water taps 873 877 Number of sanitary sewer taps 851 858 Building permits: Permits issued 211 108 Value of buildings (thousands) 12,950 9,578 Fire protection: Number of fire stations 2 2 Number of employees 1 1 Police protection - none Recreation: Parks - number of acres 223 223 Facilities: Number of playgrounds 15 15 Number of swimming pools 1 1 Education: Number of schools: City of Kodiak Elementary 3 3 City of Kodiak Junior High 1 1 City of Kodiak High School 1 1 Village Schools (a) 9 9 Number of personnel: (b) Administration 6.0 5.0 Principals 9.5 9.5 Teachers 166.3 172.4 Technical 6.5 6.5 Clerical and Aides 64.1 75.3 Maintenance/Warehouse 19.2 19.1 Custodial 21.2 21.2 Food Service 8.4 8.3 Total number of personnel 301.2 317.3 Number of students 2,602 2,632 Number of municipal employees 72 67 Elections: Number of registered voters 6,263 6,654 Number voting in last election 1,986 2,328 Percent of registered voters 31.8% 35.0% (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. 7,130 21.6 16.8 913 891 191 4,740 2 1 223 15 1 3 1 1 9 5.0 9.5 180.0 6.5 81.3 19.1 21.7 8.3 331.4 2,802 64 7,061 2,634 37.0% 7,130 21.6 16.8 921 899 218 10,360 2 1 223 15 1 3 1 1 9 5.0 11.0 185.3 6.5 73.3 19.7 21.6 8.5 330.9 2,773 65 7,382 2,113 29.0% 116 TABLE 13 19% 1997 1998 1999 2000 2001 7,130 7,130 7,130 7,130 7,130 7,130 21.6 24.7 24.7 25.0 25.0 25.4 16.8 - (c) - (c) - (c) - (c) - (c) 921 - (c) - (c) - (c) - (c) - (c) 899 - (c) - (c) - (c) - (c) - (c) 201 148 188 192 210 231 11,728 7,822 24,780 15,007 11,806 12,881 2 2 2 2 2 2 1 1 1 1 1 1 224 224 224 224 224 224 16 16 16 16 16 16 1 1 1 1 1 1 4 4 4 4 4 4 1 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 6.0 6.0 5.2 5.2 4.2 7.5 12.0 11.7 11.4 11.4 10.3 9.5 183.8 188.5 179.6 178.1 188.6 200.0 3.0 3.5 9.0 9.0 11.1 3.0 61.7 63.7 72.7 75.2 78.9 79.5 12.0 9.0 10.0 8.0 10.8 15.0 22.5 26.3 27.6 30.6 29.0 39.0 3.7 4.2 6.3 6.7 10.7 8.0 304.7 312.9 321.8 324.2 343.6 361.5 2,793 2,809 2,897 2,815 2798 2750 63 63 50 46 36 37 8,217 9,350 9,967 10,389 9,935 10,311 1,471 2,120 2,076 1,972 2,525 2,521 17.9% 22.70% 20.8% 19.0% 25.4% 24.4% 117