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CAFR FY1991KODIAK ISLAND BOROUGH KODIAK, ALASKA it r JULY 1 1990 - JUNE 30, 1991 Annual Report • Kodiak Island Borough, Alaska - ASSEMBLY MEMBERS- To the Honorable Mayor and Members of the Kodiak Island Borough Assembly: In accordance with the provisions of the Kodiak Island Borough Code, there is presented herewith the Comprehensive Annual Financial Report for the year ended June 30, 1991, and the related statements and statistical tables. Respectfully submitted, /! .", 'l. J' Karleton G. Short, Finance Director BETTY J. FITZJEARL At Large, 1993 GARY L. STEVENS At Large, 1992 Deputy Presiding Officer JEROME SELBY Mayor of Kodiak Island Borough, 1992 SUZANNE J. HANCOCK At Large, 1993 GORDON J. GOULD At Large, 1991 JACK L. McFARLAND At Large, 1993 Presiding Officer of Assembly MICHAEL R. MILLIGAN At Large, 1991 MARY A. MONROE At Large, 1992 BOROUGH OFFICIALS KODIAK ISLAND BOROUGH YEAR ENDED JUNE 30, 1991 BOROUGH ASSEMBLY Betty J. Fitzjearl '93 Michael R. Milligan 1 91 Gordon J. Gould 1 91 Mary A. Monroe 1 92 Suzanne J. Hancock '93 (Deputy Presiding Officer) Gary L. Stevens 1 92 Jack L. McFarland '93 (Presiding Officer) BOROUGH MAYOR Jerome M. Selby 1 92 Karleton G. Short . . . . . . . . . . . . . . . . . Finance Director /Treasurer Raymond Camardella . . . . . . . . . . . . .Facilities /Engineering Coordinator Vacant . . . . . . . . . . . . . . . . . . . . . . . . . . . . Borough Clerk Linda L. Freed . . . . . . . . . . . . . . . . . . . . . . Planning Director Patrick S. Carlson . . . . . . . . . . . . . . . . . . . . .Assessor /Appraiser Perry L. Page . . . . . . . . . . . . . . . . . . . . . Data Processing Manager Pamela Delys - Baglien . . . . . . . . . . . . . . . . . Mental Health Director Earl A. Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . Fire Chief Charles E. "Bud" Cassidy . . . . . . . . . . . . Resource Management Officer Jamin, Ebell, Bolger, Gentry . . . . . . . (Contracted Firm) Borough Attorney Edwin Myers . . . . . . . . . . . . . . . . . . . . . . Hospital Administrator John Witteveen . . . . . . . . . . . . . . . Superintendent, School District Cheryl Bolger . . . . . . . . . . . . . . . . . . . . . . . . . . .Accountant Barbara Templeton . . . . . . . . . . . . . . . . . . . . . Purchasing Agent vi SECTION i INTRODUCTORY SECTION Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1991 TABLE OF CONTENTS INTRODUCTORY SECTION ELECTED OFFICIALS (PHOTOGRAPHS) BOROUGH OFFICIALS BOARDS AND COMMITTEES MAP OF KODIAK ISLAND BOROUGH GFOA CERTIFICATE OF ACHIEVEMENT ORGANIZATIONAL CHART LETTER OF TRANSMITTAL EXHIBIT PAGE v vi vii ix x xi xiii FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups 1 Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - All Governmental Fund Types 2 Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances - Budget and Actual - General, Special Revenue and Debt Service Funds 3 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Type - Enterprise Funds 4 Combined Statement of Cash Flows Proprietary Fund Type - Enterprise Funds 5 Notes to Financial Statements COMBINING. INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS GENERAL FUND: Balance Sheet Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual Schedule of Expenditures and Transfers - Budget and Actual A -1 A -2 A -3 1 2 6 8 10 11 13 42 43 46 i Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1991 TABLE OF CONTENTS (Continued) ii EXHIBIT PAGE SPECIAL REVENUE FUNDS: Combining Balance Sheet B -1 52 Combining Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) B-2 54 Statement of Revenues, Expenditures, Transfers and , 3 Changes in Fund Balance (Deficit) - Budget and Actual: j Fire and Road Service Districts: Fire: Area 1 B -3 56 Women's Bay B -4 57 I Road: Monashka Bay B -5 58 District 1 B -6 59 Women's Bay B -7 60 Bay View B -8 61 Federal and State Grant Programs: Mental Health Center B -9 62 Mental Health Center - Schedule of Expenditures B -10 63 Coastal Management (Energy) Program B -11 64 Day Care B -12 65 Education B -13 66 Land Sales B -14 67 Building and Grounds B -15 68 Woodland Acres Lighting B -16 69 Oil Spill Cleanup B -17 70 DEBT SERVICE FUNDS: Combining Balance Sheet C -1 72 Combining Statement of Revenues, Expenditures Transfers, and Changes in Fund Balance C -2 73 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual: School Bonds C -3 74 Other C -4 75 ' CAPITAL PROJECTS FUNDS: Combining Balance Sheet D -1 78 , Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances (Deficits) D -2 80 Schedule of Capital Projects D -3 82 ii Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1991 TABLE OF CONTENTS (Continued) iii EXHIBIT PAGE ENTERPRISE FUNDS: Combining Balance Sheet E -1 86 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings E -2 88 Combining Statement of Cash Flows E -3 89 Sanitary Services: Balance Sheet E -4 90 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual E -5 91 Statement of Cash Flows E -6 92 Water: Balance Sheet E -7 94 Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual E -8 95 Statement of Cash Flows E -9 96 Sewer: Balance Sheet E -10 97 Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual E -11 98 Statement of Cash Flows E -12 99 Hospital: Balance Sheet - December 31, 1990 and 1989 E -13 100 Statement of Revenues, Expenses, Transfers and Changes in Fund Equity - Years Ended December 31, 1990 and 1989 E -14 101 Statement of Cash Flows - Years Ended December 31, 1990 and 1989 E -15 102 AGENCY FUNDS: Combining Statement of Changes in Assets, Liabilities and Fund Balances F -1 104 GENERAL FIXED ASSETS ACCOUNT GROUP: Schedule of General Fixed Assets by Source G -1 106 Schedule of General Fixed Assets by Function and Activity G -2 107 Schedule of Changes in General Fixed Assets by Function and Activity G -3 108 iii Kodiak Island Borough ' Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1991 " TABLE OF CONTENTS (Continued) EXHIBIT PAGE GENERAL LONG -TERM DEBT ACCOUNT GROUP: Schedule of General Long -Term Debt H -1 110 SUPPLEMENTAL FINANCIAL DATA: Summary of Debt Service Requirements to Maturity I -1 112 General Obligation School Improvement Bonds, Series 1986A Retirement Schedule I -2 113 General Obligation School Refunding Bonds, Series 1989 Retirement Schedule I -3 114 Asbestos Removal Loan Payable I -4 115 STATISTICAL SECTION TABLE PAGE STATISTICAL TABLES: General Governmental Expenditures and Other Uses by Function - Last Ten Fiscal Years 1 118 General Revenues by Source - Last Ten Fiscal Years 2 119 Property Tax Levies and Collections - Last Ten Fiscal Years 3 120 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 4 121 Property Tax Rates - All Overlapping Governments - Last Ten Fiscal Years 5 122 Ten Largest Taxpayers 6 123 Ratio of Net General Bonded Debt - Last Ten Fiscal Years 7 124 Computation of Direct and Overlapping Debt 8 125 Computation of Legal Debt Margin 9 126 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures - Last Ten Fiscal Years 10 127 Demographic Statistics - Last Ten Fiscal Years 11 128 Salaries and Surety Bonds of Principal Officials 12 129 Property Value, Construction and Bank Deposits - Last Ten Fiscal Years 13 131 Miscellaneous Statistical Data - Years Ended June 30, 1982 through June 30, 1991 14 132 Ij iv � I � I KODIAK ISLAND BOROUGH BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1991 Mental Health Center Advisory Board (9) Josefina Barber James Carmichael Richard Gaines * Vickie Hester Meri Holden Mark Houglum Mary Monroe Linda Mullan Karen Perkins Plannine _an d _Zoninz Commission (7 Jon R. Aspgren Bruce Barrett Wayne Coleman Jon Hartt * Robin Heinrichs Tom Hendel Jody Hodgins Citizen Board of Eaua lization (5 L. Ann Barker Jim Carmichael Vickie Case * Andi Cristaldi Tom Peterson Bill Roberts, Alternate Parks and Recreation Committee (1 Forrest Blau Jon Hartt Jeri Jensen Bill McClain Jack McFarland * David Odell Elizabeth Odell Tom Watson Gloria Wiechmann Ian Fulp (City Rep.) Claire Holland (State Rep.) Alice Knowles (School Board) Buildine Code Board of ADDeals (Architectural Review Board) (9 * Bill Beatty Ron Chase Louise Ball Cusson John Doyle Cliff Ford Mike Milligan Thomas Rainey James Wheeler Susan Workman Personnel Advisory Board (5 Pat Borger Joanne Demke Mary McFarland Letitia Raub * Walter Sapp vii School Board (7 Sunshine Bishop Dave Herrnsteen ' Alice Knowles * Cheryl McNeil Bill Oliver Norm Wooten Susan Workman Hospital Advisory Board (9 ' Ben Ardinger Gil Bane Gordon Gould * Jon Hlavinka Gretchen Saupe Betty Springhill Wayne Stevens 1 Jeannie Volker Lorne White Mental Health Center Advisory Board (9) Josefina Barber James Carmichael Richard Gaines * Vickie Hester Meri Holden Mark Houglum Mary Monroe Linda Mullan Karen Perkins Plannine _an d _Zoninz Commission (7 Jon R. Aspgren Bruce Barrett Wayne Coleman Jon Hartt * Robin Heinrichs Tom Hendel Jody Hodgins Citizen Board of Eaua lization (5 L. Ann Barker Jim Carmichael Vickie Case * Andi Cristaldi Tom Peterson Bill Roberts, Alternate Parks and Recreation Committee (1 Forrest Blau Jon Hartt Jeri Jensen Bill McClain Jack McFarland * David Odell Elizabeth Odell Tom Watson Gloria Wiechmann Ian Fulp (City Rep.) Claire Holland (State Rep.) Alice Knowles (School Board) Buildine Code Board of ADDeals (Architectural Review Board) (9 * Bill Beatty Ron Chase Louise Ball Cusson John Doyle Cliff Ford Mike Milligan Thomas Rainey James Wheeler Susan Workman Personnel Advisory Board (5 Pat Borger Joanne Demke Mary McFarland Letitia Raub * Walter Sapp vii Ul KODIAK ISLAND BOROUGH KODIAK. ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1991 Data Processi Steering Committee Jack McFarland Bill Oliver Perry Page * Jerome Selby Karleton Short John Witteveen Jocelyn Zwiefelhofer Fire Protection Area #1 Advisory Board (5) * Scott Arndt Vernon Berns Charles Lorenson John Shank Bill Swearingin Bav View Road Service Distr Advisory Board (5) Dawn Black Randy Chase Ron Chase Rick Holzshu * Reed Oswalt Monashka Bav Road Service D istrict Advisory Board (5) Eric Blankenburg Lou Dochtermann Don Fox Dan Ogg * Joel Wattum Emerzencv Serv ices Council (5 Tom Barrett, USCG Bob Brodie Gordon Gould * Jerome Selby Gary Stevens * Indicates chair viii Service Dist No. 1 Advisory Board (7) * Scott Arndt Vernon Berns Jim Fisks Charles Lorenson Andy Nault Earl Smith, Jr. Vacant Women's Bav S ervice District Advisory Board (7) * Wayne Berry Andy Edgerly James "Butch" Fitzjearl Dale Starkovich Bob Tarrant Richard Perkins Vacant Kodiak Is land Transportation Stud Steering Committee (KITS) (5) Bob Brodie * Gordon Gould Jerome Selby Gary Stevens Vacant Woodland Acres Street Light Service Di strict Advisory Board (3 Bob Hatcher Barbara Heinrichs * Sharon Nault 1 J r rr r Ir Ir rI rr rr rr r r r r r rr r� rr rr rr ARCTIC OCEAN v PT, BARROW PRUDHOE BAY D. " am oowc K4ftUK ;m BAY OLD FARM o� 0 s KODIAK d` ISLAND Q BOROUGH v KOTZEBUE AR _ CIR r_`VV NOME 0� NORTON SOUND FAIRBANKS lllll ALASKA k e ANCHORAGE VALDEZ BETHEL PKENAI ; AR4 DILLINGHAM , GULF OF ALASKA BRISTOL BAY Ole O Y A KODIAK oa ISLAND NORTH PACIFIC OCEAN CANADA EAU HIKAN I 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, 1990 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 (CAFR's) achieve the highest standards in government accounting and financial reporting. President Executive Director x C u r, tLECTORATt torough Assembly elected) 3Lospital Planning & Citizens Advisory 1'tayor Service District School Board Advisory Board Zoning Commissio Boards /Commission Advisory Boards (��) (Appointed 69 (Appointed by (Appointed by (Elected) Assem6l ) Assembly) Assem6L ) Personnel Board Manashk.a Ba y Superintenderi �lospital Borough Architectural RevLew Road Service o Schools f Parks and Recreation District Administrator Attorney Board of Equalization Womens Bay Road Mental licaLth Center Service /Fire }{ itaL p Borough Economic Development District FS chool Staff sta Clerk. OCS Advisory Council Service District No.I Building Code Board -Road, Water, Sewer of Appeals Vire District No. l XILTS Committee - $ayview Woodland Acres Street Lighting District Building Dev i ment Engineering 7tl Community p Finance Data Services Assessing Mental 3Lealth Inspector Department Department Department Department Department Center SECTION 2 FINANCIAL SECTION Kodiak IslandBorough 710 MILL BAY ROAD KODIAK, ALASKA 99615 -6340 > PHONE (907) 486 -5736 ' October 4, 1991 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, 1991 is submitted herewith. This report was prepared by the Borough Finance Department. Responsibility for the ' accuracy, completeness and fairness of presentation, including all disclosures, rests with the Borough. We believe the data, as presented, is accurate in all material respects, that it is presented in a manner designed to fairly set forth the financial position and results of operations of the Borough as measured by the financial activity of its various funds, and that all disclosures necessary to enable the reader to gain maximum understanding of the Borough's financial affairs have been included. This comprehensive annual financial report is presented in three main sections: introductory, financial, and statistical. The introductory section includes background on the Borough, the fund accounting concept used by the Borough, and some financial presentations. The financial section includes the report of the independent auditor, combined financial statements, notes to financial statements, and more - detailed combining and individual financial statements and schedules. The statistical section includes selected financial and general information presented on a ten year comparative basis. GENERAL INFORMATION The Kodiak Island Borough lies at the western border of the Gulf of Alaska, about 40 miles south of the Kenai Peninsula. About two- thirds of the Borough lies in the Kodiak archipelago. One third of the Borough is on the Alaska Peninsula across the Shelikof Strait from Kodiak Island. The Shelikof Strait is only 20 miles wide in places. The Borough encompasses 7,130 square miles, making it slightly smaller than the State of Massachusetts. The Borough was incorporated September 30, 1963 as a Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. The Borough is governed by a strong xiii I i Mayor/Assembly form of g overnment. The Borough Assembly is composed of seven members ' who are elected at large. _ The funds related to the Borough included in our CAFR are considered to be within the oversight responsibility of the Borough Assembly. The criteria used in determining the reporting entity are consistent with the Codification of Governmental Accounting and Financial Reporting Standards Section 2100, "Defining the Reporting Entity ". Based on these criteria, the various funds and account groups (being all the funds and account groups of the Borough) shown in the Table of Contents are included in this report. ECONOMIC CONDITION AND OUTLOOK The economic condition of the Kodiak Island Borough remains quite good. The main industries of the Kodiak Island Borough are commercial fishing, logging, and tourism. While some segments of the commercial fishing industry are down, others are up. Logging has been fairly stable but tourism was down in 1991 due to the state ferry Tustemena being in Washington State the entire summer for repairs. Commercial fishing is by far the largest industry in the Kodiak Island Borough. For all of the fisheries combined the total catch in calendar year 1990 was $103,639,625 compared to $98,169,977 in 1989 and $84,621,809 in 1980. The estimated 1991 ex- vessel value of the salmon fishery is $31.4 million which is below the 1990 season of $51.0 million and the 1988 season of $104 million. The reason for this decline in ex- vessel value is the abundance of fish on the world markets, and thus, lower salmon prices. In 1991 (June 9, 1991 - October 1, 1991) 23.67 million salmon were harvested. The sockeye (red salmon) harvest of 5.7 million fish is a new record harvest for Kodiak followed by the 1990 harvest of 5.25 million and the 1901 harvest of 4.83 million sockeye. The shellfish (crab) industry is still down with a catch of $27.6 million in 1990 compared to $47.5 million in 1980. The assessed value of real and personal property of the Kodiak Island Borough has risen from $337,092,196 in 1982 to $516,304,869 in 1991, an increase of 538. The unemployment rate as of June 30 was 8.28 but July 5th is the traditional time when the canneries hire their seasonal workers. The unemployment rate is generally 3.2 to 128. Based on current Chamber of Commerce projections the Kodiak Island Borough will continue to grow through the end of the century. This growth will positively impact the Kodiak Island Borough but the Borough will also have to grow to provide the same level of services to its residents. MAJOR INITIATIVES In preparing the Fiscal Year 1991 budget the Kodiak Island Borough identified several major projects to be addressed in Fiscal Year 1991. All major projects are listed in , Schedule D -3 of the annual report. One major project was the acquisition of a new IBM AS /400 computer system and the purchase of New World Accounting software. This should considerably enhance the ability of the Kodiak Island Borough to collect and report , financial information. Other projects of note were the repair of the Old Harbor School and the High School Alteration project. I xiv �1 The residents of Woodland Acres, a service district within the Kodiak Island Borough, voted to provide lighting services to their district beginning in Fiscal Year 1991. Several street lights were installed and in operation in Fiscal Year 1991 with more to be added in Fiscal Year 1992. Two new positions were added to the Sanitary Landfill Department in Fiscal Year 1991. This increased the staffing level at the landfill from 3 positions to 5 positions. These positions were for an Environmental Engineer and another Baler Operator I. It was felt that these positions were needed to meet all of the Federal and State ' requirements and also to maintain the quality of the environment of the Kodiak Island Borough. In the past several years, including Fiscal Year 1991, the Kodiak Island Borough has been using a portion of Fund Balance to fund current operations. Even though the Kodiak Island Borough has a very low mill rate (4.5 mills in Fiscal Year 1991), it was felt that an alternative to just increasing the property tax would be beneficial. Therefore, beginning July 1, 1991, there is a severance tax on resources extracted from the Kodiak Island Borough. This tax is on fish, timber, and gravel extraction. The severance tax rate is the same as the property tax rate (5.5 mills in Fiscal Year 1992). The Kodiak Island Borough has also designated a new hospital as their number one capital project. To this end, the Borough has done the site work and completed the design of a new hospital. The Borough is presently procuring funds to begin construction of a new hospital. DEPARTMENT OR ACTIVITY SERVICE EFFORTS AND ACCOMPLISHMENTS The Borough provides a variety of services including education, health, garbage collection and disposal, planning and zoning, public improvements, and general administration. The Borough provides for education through the Kodiak Island Borough School District and has contracted with Lutheran Health Systems Management Company to operate the Borough Hospital. The Borough is responsible for operating the sanitary landfill and provides water and sewer services outside the Kodiak city limits. The Borough has oversight responsibility for four road service districts, two fire protection districts, and a street light service district. ' Each year the Borough selects a department to highlight for its efforts and accomplishments. For Fiscal Year 1991 the Borough Assessing Department has been selected for review. The 4 person staff of this department has substantially improved both the quality and equity of the assessment process over the last 3 years. Some of the accomplishments include the complete physical reappraisal of over 908 of the 12,500 square miles of the Borough, the taxation of timberlands on Afognak, adding over 200 parcels of property not previously on the tax roll and the complete reconstruction of ' the personal property roll. The net result has been a dramatic increase both in tax revenues and overall equity of all taxable property within the Borough. ' This office has which goes into developed a severance tax on resource extraction within the Borough effect July 1, 1991. This severance tax should result in approximately $500,000 of new revenues for Fiscal Year 1992. While conducting this massive effort, the department has been within its budget and has not increased its staff, due in part xv I i, to the efficient utilization of available resources, a cost/benefit approach to the ' work load and old fashioned hard work. The use of the fishing vessel K -HI -C to reappraise remote property has resulted in over a 75% reduction in the cost of travel which has historically been done by airplane. Use of the vessel also allowed for a more effective review along with foul weather access to property that had not been physically visited in many years. The reputation of this office having a high quality and efficient operation has drastically reduced public concern over their assessments and a greater reliance on the department as a resource for information and assistance. So while increasing tax revenues to the Borough by nearly $500,000 in three years, the department has also been able to maintain the confidence of the citizens, resulting in only one tax assessment appeal during this 3 year period. The future goals of this department include the creation of a computer -aided mass appraisal system package integrated with a computerized mapping information system which should insure the efficient and cost effective operation of this department through the 90's. FINANCIAL INFORMATION DISCUSSION OF CONTROLS Management is extremely aware of the importance of good internal controls. Although present controls are considered to be highly satisfactory and adequate, they continue to be scrutinized periodically for enhancements. Internal control structure The accounting system of the Borough is dependent upon a strong system of internal control. The Finance Director of the Borough also acts as the internal auditor. The Borough is concerned with all aspects of internal control, both reliable and accurate financial information and the safeguarding of Borough assets. As much as possible, in a small office, duties are segregated and no one person has complete control over any one area. Budgetary controls The Borough uses the modified accrual basis for governmental funds and the accrual ■ basis for enterprise funds. Under the modified accrual basis of accounting, revenues are recognized when measurable and available and expenditures are recognized when ' incurred. Budgetary control is maintained by an annual appropriation system supplemented by a , supplemental appropriation approximately half way through the fiscal year. Budgetary control is also maintained through the use of an encumbrance system. As purchase orders, contracts and other obligations are issued, corresponding amounts of appropriations are reserved by the use of encumbrances so that appropriations will not ' be overexpended. All new monies are appropriated by a public hearing and the adoption of an , appropriation ordinance. Appropriation transfers are made between funds and /or departments only after the adoption of a resolution by the Assembly. Appropriation transfers between line items within a fund are done by staff. ' xvi r� GENERAL GOVERNMENT FUNCTIONS The following schedule presents a summary of general fund revenues for the fiscal year ended June 30, 1991 and the amount and percentage of increases and decreases in relation to prior year revenues. Only the General Fund of the Borough is considered in the following explanation of general governmental functions. Intergovernmental revenue is much larger in Fiscal Year 1991 compared to Fiscal Year 1990 due to raw fish tax. A change in budgeting occurred in 1990 and subsequent years to recognize the tax in the year received. No revenue for this item was recognized in Fiscal Year 1990. Property tax is the largest source of revenue for the general fund of the Kodiak Island Borough. The increase in property tax is due to an increase in the assessed value of the Borough. Changes in levels of expenditures for major General Fund functions of the Borough over the preceding year are shown in the following tabulation: Increase Revenue Source and Other Percent (Decrease) Financing Sources Amount of Total Over 1990 Property taxes $2,823,929 50.1% $ 183,885 Intergovernmental 2,255,951 40.0 939,713 Licenses, permits, and fees 100,868 1.8 (19,277) Investments and property 456.381 8.1 (84.470 Education $5.6�7,129 10_j% $1.0� 1 Intergovernmental revenue is much larger in Fiscal Year 1991 compared to Fiscal Year 1990 due to raw fish tax. A change in budgeting occurred in 1990 and subsequent years to recognize the tax in the year received. No revenue for this item was recognized in Fiscal Year 1990. Property tax is the largest source of revenue for the general fund of the Kodiak Island Borough. The increase in property tax is due to an increase in the assessed value of the Borough. Changes in levels of expenditures for major General Fund functions of the Borough over the preceding year are shown in the following tabulation: The Assembly of the Kodiak Island Borough has tried very hard in recent years to hold ' the line on spending and they have done a very good job. The largest increase in general government came from adding a position in the Community Development Department. Expenditures for public works went down with the deletion of one position. ' The fund balance of the General Fund continues to undergo a critical periodic review. Planned drawdowns have been budgeted and executed by tax reduction and transfers to other funds to keep the fund balance adequate and reasonable. As a result of these xvii Increase Percent (Decrease) Function Amount of Total Over 1990 General government $1,943,385 73.08 $114,264 Public safety 81,299 2.5 6,606 Public works 149,898 4.6 (75,077) Health and sanitation 411,000 12.7 43,079 Education 43,633 1.3 (10,517) Culture and recreation 190,700 5.9 10,200 Conservation and development 426.516 13.1 76.686 $3.2_ 100.0 $165,241 The Assembly of the Kodiak Island Borough has tried very hard in recent years to hold ' the line on spending and they have done a very good job. The largest increase in general government came from adding a position in the Community Development Department. Expenditures for public works went down with the deletion of one position. ' The fund balance of the General Fund continues to undergo a critical periodic review. Planned drawdowns have been budgeted and executed by tax reduction and transfers to other funds to keep the fund balance adequate and reasonable. As a result of these xvii I �, actions, the current year property tax millage rate remains unchanged from the previous year. The following table reflects fund balance of the General Fund at the close of business for fiscal years ended June 30: 1982 $ 5,478,183 1983 2,684,707 1984 2,742,239 1985 2,661,914 1986 2,532,100 1987 2,475,747 1988 2,248,866 1989 3,098,371 1990 1,981,147 1991 1,774,750 PROPRIETARY OPERATIONS The Kodiak Island Hospital and Care Center is contracted for management services with the Lutheran Health Systems Management Company. The Borough is ultimately liable for any financial loss. In July 1991, subsequent to the Hospital's December 31, 1990 year end and subsequent to the issuance of other independent accountant's report relating thereto, the Hospital settled on -going malpractice litigation which resulted in a liability of approximately $700,000. The financial statements of December 31, 1990 reported on by other independent accounts have been adjusted to reflect the settlement. The Borough does not have a water plant or sewer treatment facility. Water is purchased from the City of Kodiak and sold to Borough users. These customers are in a service district contiguous to the City. All utility funds have shown a significant annual operating loss for the previous three fiscal periods but showed an aggregate profit for Fiscal Year 1991. Sanitary Water Sewer Services Total 1988 $(49,711) $(177,372) $(287,447) $(514,530) 1989 (81,440) (260,870) (349,308) (691,618) 1990 (95,800) (158,587) (95,231) (349,618) 1991 (41,323) 36,451 11,724 6,852 The utility funds, which include water, sewer and sanitary services are frequently supported by contributions from the general or other funds. On July 1, 1991 water, sewer and garbage rates were increased by 468. Management feels that this will enable the utility funds to start showing an operating profit. xviii C I , FIDUCIARY OPERATIONS All fiduciary activity is handled with the same care and due diligence that we exercise with any of our funds. All amounts due are withheld and /or collected, accounted for and remitted promptly. Periodically the State of Alaska informs each participating entity of the Public Employees Retirement System (PERS) as to the employee and employer contribution rates. These amounts are budgeted, withheld and remitted accordingly. Unfunded pension liabilities represent one of the most important financial problems which will face most cities and counties of America today. Your Borough staff, being acutely aware of this, has initiated legislation that has been adopted by the Assembly to preclude this from being a problem that we would face in the future. The Borough and school district pension funds have no unfunded pension benefit obligation. Periodically the actuarial assumptions are revised by the State of Alaska PERS. When such occurrence creates a deficiency, that amount is paid within the period of notification or upon adoption of a subsequent budget. The Borough collects, deposits, invests and accounts for all property tax receipts. For the entities for which the Borough does the accounting, the revenue is recognized in those particular funds. Receipts for the City of Kodiak are normally remitted in full in October or November of each year. All other fiduciary collection activity (i.e., Federal withholding, FICA, Insurance, Pension funds, etc.) is accounted for and promptly remitted to the agency involved. DEBT ADMINISTRATION Summary of debt principal outstanding at fiscal year end was: General obligation, school 1986 $ 5,000,000 General obligation refunding 1989 8,735,000 Environmental Protection Agency loan 281.248 $14.016.248 No new debt obligation was incurred during the past year. However, on July 15, 1991, Kodiak Island Borough issued $4,875,000 in General Obligation School Refunding Bonds, 1991 Series A, to refund the 1986 Series A General Obligation Variable Rate Demand Bonds. The interest rate on the bonds will vary from 4.65% to 5.908 and will be paid in semi - annual installments commencing December 1, 1991 with the last installment due June 1, 1996. Proceeds from the issuance were used as follows: Deposit to principal and interest fund to pay off refunded issue $4,738,047 Costs of issuance 126,938 Original issue discount 10.015 $4.8- xix I � The Statutes of the State of Alaska and the Code of the Kodiak Island Borough do not ' establish a legal debt margin. Our debt capacity is determined by a vote of the electorate and ultimately by the marketplace when debt is attempted to be placed. . The Borough has no revenue bonds authorized or issued. The Borough's general obligation bonds are rated as follows: Moody's Standard Investors Service and Poors General obligation variable rate 1986 AA + /A -1+ General obligation refunding 1989 Aaa Per capita debt for the past ten years is reflected in Table 7 on page 123. You may note that a per capita high of $1,772 was reached in 1984 during the peak years of our new school construction. Our per capita bonded debt is now down to $410. CASH MANAGEMENT Cash management is a strong point of your current Borough Finance Department. Monies, naturally, cannot be invested until received and deposited. As simple as this is, few in government stress this point. It was only a few years ago that several years of unpaid taxes were not the exception. The required forms were not prepared and submitted promptly for drawdowns on State grants and other receivables were handled in a like manner. All accounts of the Borough are now relatively current and proper monitoring procedures are in place for timely receipt and deposit of any amounts due. Investment policies The Borough treasurer operates as the central treasurer for all Borough monies. This, in effect, means the Borough, School District, Hospital and Mental Health Center monies. A cash pool concept is maintained whereas all funds are self - balancing unique entities and each fund 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." All funds are deposited daily and all idle funds are invested on the following day. We do recognize that there is frequently some exposure to uninsured and uncollateralized deposits. We have made great strides in minimizing this exposure through increased collateral and selection of banks and brokers with additional insurance. An account is now used (established February 1989) with the local servicing bank to daily sweep the total balances to another account. This account is collateralized by U.S. Treasuries at 102% of carrying value. Collateral is held by a third party bank. The Borough investment policy is far more restrictive than many governments. The parameters in which we operate are as defined in Title 3, Chapter 4, of the Borough t Code. Basically, it states that we invest only in high grade securities that are fully collateralized and /or insured. Further, the collateral is to be held by a third party bank. I xx During the past year the investments of the Borough have fluctuated between $18 and $21 million. Interest rates for our fiscal year started off at 7.98 to 8.58 in early July 1990. At year -end of June 30, investments were earning from 5.88 to 8.08 for an average yield of 6.168. We closed out the year with investment earnings for all funds in the amount of $1,897,792. RISK MANAGEMENT Risk management is a term used to describe all management activities directed-toward the control of risks. The methods used to establish this control are: - Identification of risks - Measurement of risks - Elimination of or control of risks - Self- assumption of certain risks through formal funding - Transferring risks through the purchase of insurance A year by year comparison is somewhat meaningless, without study, as some years' records include refunds of unearned premiums of past years while others do not. The Assembly and staff are currently working on identification of risks as an ongoing item so that appropriate management action may be taken to minimize cost where possible while providing adequate coverage. Insurance premium costs are no longer a minor expenditure item for the Borough. In recent years, insurance premium costs have risen considerably and are now in excess of a million dollars annually. The policy of the Borough is to get bids on the selection of the insurance agent every three years. We work closely with this agent to get the best coverage for the dollar. Periodically we also have an insurance analysis performed by a major risk management independent consultant (one who sells only service, not insurance) to review our coverage and highlight potential exposure and /or duplication of questionable coverage. This has again been accomplished and a copy of this report is used and is on file. OTHER INFORMATION INDEPENDENT AUDIT The Borough Code requires an annual audit to be made of the books of account, financial records, and transactions of all administrative departments of the Borough. We have complied with this requirement and the auditor's opinion has been included in this report. The scope of our annual audit has been strictly financial and compliance for many years. No performance auditing has been contracted for or accomplished. The State of Alaska requires single audits per statute and defines these requirements in 2 AAC 45.010. The Borough also complies with the "Federal Single Audit Act of 1984 ". xxi AWARDS 1 GOVERNMENT FINANCE OFFICERS ASSOCIATION CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN I FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the , Kodiak Island Borough for its comprehensive annual financial report for the fiscal years ended June 30, 1988, June 30, 1989, and June 30, 1990. In order to be awarded a Certificate of Achievement, a government unit must publish an 1 easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally 1 accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. 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 Borough Mayor and Finance personnel have worked hard in recent years to streamline our budget. Each annual document encompasses the good features of the prior years while adding the best of current thinking. ' We submitted our Fiscal Year 1991 budget to the GFOA and received the Distinguished Budget Presentation Award. OTHER AWARDS Citizens of the Kodiak Island Borough are pleased to see that our Mayor, Jerome M. Selby, has been recognized nationally. He appears in the current issue of Who's Who in the West and also Who's Who in the World Acknowledgements I wish to express my appreciation to all the members of the finance department for 1 their efficient and dedicated service during the past year. I wish to thank your office and the members of the Borough Assembly for their interest in and support of the planning and conducting of the financial operations of the Borough in a responsible and 1 progressive manner. Respectfully submitted, T--z� '6- i4 1 1 KARLETON G. SHORT DIRECTOR OF FINANCE , xxii 101 West Benson Boulevard Anchorage, AK 99503 Price Waterhouse INDEPENDENT AUDITOR'S REPORT October 4, 1991 To the Mayor and Members of the Assembly Kodiak Island Borough Telephone 907 563 4444 to In our opinion, based upon our audit and the report of other independent accountants, the accompanying general purpose financial statements listed in the table of contents present fairly, in all material respects, the financial position of the Kodiak Island Borough at June 30, 1991 and the results of its operations and cash flows for its proprietary fund type for the year then ended, in conformity with generally accepted accounting principles. These general purpose financial statements are the responsibility of the Borough's management; our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statements of Kodiak Island Hospital and Care Center, which represents 31 percent and 77 percent respectively of the assets and revenues of the Proprietary Fund Type. Those financial statements, prior to the adjustment noted in the paragraph immediately following, were audited by other independent accountants whose report has been furnished to us, and our opinion expressed herein, insofar as it relates to the amounts included for Kodiak Island Hospital and Care Center is based solely on the report of the other independent accountants. We conducted our audit in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by Borough officials, and evaluating overall financial statement presentation. We believe that our audit and the report of other independent accountants provides a reasonable basis for our above opinion on the general purpose financial statements. As discussed in Note 12, accrued liabilities and expenses of Kodiak Island Hospital and Care Center at December 31, 1990 have been adjusted to reflect a settlement agreement. We have audited the adjustments described in Note 12 that were applied to the financial statements of December 31, 1990. In our opinion, such adjustments are appropriate and have been properly applied to the 1990 financial statements. Our audit was made for the purpose of forming an opinion on the general ' purpose financial statements taken as a whole. The combining, individual fund, and individual account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial 1 statements of the Kodiak Island Borough. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, based upon our audit and the report of other independent accountants, is stated fairly in all material respects in relation to the general purpose financial statements taken as a whole. KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1991 Governmental Fund Tunes Special Debt Capital ASSETS General Revenue Service Projects Current assets: Equity in central treasury $ 120,251 $ 349,388 $ 508,876 $ 412,803 Temporary investments 3,586,982 1,941,891 6,508,945 4,026,877 Other cash and cash equivalents - 45,511 110,285 - Investment in deferred compensation plan - - - - Receivables: State of Alaska 49,310 1,211,133 239,782 12,889 Federal Government - 41,924 - - Property taxes, net of allowance of $17,667 42,078 - - - Land sales contracts, due within one year - 195,510 - - Other, net of allowance of $789,488 48,266 294,056 114,751 47,368 Due from other funds - 2,235,115 - 152,670 Inventories - 173,826 - - Prepaid expenses 37,250 32,090 - - Assets whose use is limited: By Borough - - - " Under malpractice funding arrangement -held by trustee - - - - By donor for purchase of equipment - - - - Equity in central treasury - - - - Temporary investments - - - - Interest receivable - - - - Land sales contracts receivable, due after one year - 1,729,586 - - Deposit on capital lease - - - Amount available to service long -term debt in Debt Service Fund - - - " Amount to be provided to service long -term debt - - - - Fixed assets in service - - - - Accumulated depreciation - - - - Construction work in progress - - - - Total assets $3,8��7 $8.2� 50,030 $7.4�639 $4.6� 552 The accompanying notes are an integral part of these financial statements. 2 EXHIBIT 1 Proprietary Fiduciary Totals Fund Type Fund Type Account Groups (Memorandum Only) Agency General General Long - Enterprise Fund Type Fixed Assets Term Debt 1991 1990 $ 214,326 $ - $ - $ - $ 1,605,644 $ 1,869,215 250,000 - - - 16,314,695 15,629,451 1,099,788 118,502 - - 1,374,086 2,906,558 - 710,336 - - 710,336 622,980 _ - - - 1,513,114 1,527,395 41,924 61,094 42,078 15,313 _ - - - 195,510 245,276 1,856,109 79 - - 2,360,629 1,754,153 - - - - 2,387,785 3,676,046 190,918 - - - 364,744 420,889 28,206 - - - 97,546 600,694 658,377 - - - 658,377 767,567 257,990 - - - 257,990 - 73,376 - - - 73,376 - 33,946 - - - 33,946 20,160 500,000 - - - 500,000 481,556 16,556 - - - 16,556 15,794 - - - - 1,729,586 1,368,020 67,976 - - - 67,976 - - - - 7,475,608 7,475,608 6,835,420 - - - 6,708,518 6,708,518 8,928,338 24,210,512 - 77,236,816 - 101,447,328 100,077,191 (4,847,882) - - - (4,847,882) (4,132,709) 32,395 - 1,493,112 1,525,507 1,850,761 $24,642,593 $828,917 $78,729,928 $14,184,126 $142,654,977 $145,541,162 Continued 3 KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1991 The accompanying notes are an integral part of these financial statements. 4 Governmental Fund Types LIABILITIES AND Special Debt Capital FUND EQUITIES General Revenue Service Projects Liabilities: Accounts payable $ 92,897 $ 400,779 $ 7,031 $ 33,447 Retainage payable - - - 24,170 Salaries payable - 752,624 - - Payroll taxes and employee benefits 18,167 841,519 - - Other accrued liabilities 3,208 206,538 - - Current portion of capital lease obligation - - - - Customer deposits - 300 - - Deferred and unrealized revenues - 2,086,635 - 542,572 Deferred compensation - - - - Due to other funds 1,995,115 257,670 - - Due to student organizations - - - - Capital lease obligation - - - - Accrued annual leave - - - - General obligation bonds payable - - - - Environmental Protection Agency loan - - - Total liabilities 2.109.387 4.546.065 7.031 600.189 Fund equities and other credits: Contribution in aid of construction - - - - Investment in general fixed assets - - - - Retained earnings - - - - Fund balance: Reserved: Encumbrances - 78,965 - 709,443 Fuel inventory - 50,345 - - Health insurance - 200,000 - - Fiscal Year 1991 PL -874 - 154,032 - - Unreserved: Subsequent year expenditures 1,774,750 341,800 7,475,608 1,426,538 Undesignated - 2.878.823 - 1.916.437 Total fund equities and other credits 1.774.750 3.703.965 7.475.608 4.052.418 Total liabilities, fund equities and other credits $3.884.137 $8.250.030 $7.482.639 $4.652.607 The accompanying notes are an integral part of these financial statements. 4 EXHIBIT 1 (Continued) Proprietary Fiduciary - Totals Fund Type Fund Tyne Account Groups (Memorandum Only) 814,184.126 Agency General General Long - Enterprise Fund Tyne Fixed Assets Term Debt 1991 1990 $ 410,366 $ 1,285 $ - $ - $ 945,805 $ 902,618 _ _ _ - 24,170 2,622 _ _ _ - 752,624 573,572 286,413 - - - 1,146,099 1,164,347 730,464 - - - 940,210 22,547 24,922 - - - 24,922 - 34,184 - - - 34,484 14,741 _ _ _ - 2,629,207 2,383,103 - 710,336 - - 710,336 622,980 _ _ _ - 2,252,785 5,192,916 - 117,296 - - 117,296 92,412 114,232 - - - 114,232 - - _ - 167,878 167,878 151,675 - - - 13,735,000 13,735,000 15,310,000 - 281.248 281.248 302.083 1.600.581 828.917 - 14,184.126 23.876.296 26.735,616 19,516,272 - - - 19,516,272 19,899,311 - - 78,729,928 - 78,729,928 77,973,489 3,525,740 - - - 3,525,740 4,876,895 - 788,408 143,163 _ - 50,345 85,937 _ - 200,000 200,000 _ _ - 154,032 207,072 - 11,018,696 11,181,026 4.795.260 4,238.653 23.042.012 - 78.729.928 - 118.778.681 118.805,546 $24.642.593 $828,917 $78.729,928 814,184.126 $142.654.977 $145.541.162 5 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1991 a Special General Revenue Revenues: , Property taxes $ 2,823,929 S 339,734 Intergovernmentat: State sources 2,253,888 18,686,558 Federal sources 2,063 2,017,334 Land sale proceeds - 581,519 Exxon reimbursement - - Insurance proceeds - - Asbestos settlement - - _e Licenses, permits, fees and other Local revenues 100,868 866,789 Investments and property 456,381 491,810 Total revenues 5,637,129 22.983,744 Expenditures: Current: Borough Assembly 127,479 - 4 Mayor's department 207,326 - CLerk's department 235,235 - Legal department 143,481 - Finance department 313,393 - Data services 197,025 - ,y Assessment department 215,401 - Engineering facilities department 149,898 - Community development department 376,662 581100 Building inspector 78,218 - s Resource management 75,013 - Switchboard /word processing 57,398 - Community and Regional Affairs liaison 3,171 - Economic development 49,854 - k General administration 368,463 857,881 , Emergency preparedness 3,081 - Education support 43,633 17,481,451 Health and sanitation 411,000 1,856,893 Culture and recreation 190,700 - Oil spill clearwp - 409,989 Capital improvements: Capital outlay - - Schools - - Service district maintenance - 140,548 General - - Debt service - - Total expenditures 3,246,431 20,804,862 Excess (deficiency) of revenues over expenditures 2,390,698 2,178,882 i Other financing sources (uses): S Demand bond principal payments Operating transfers in - 173,230 - 2,790,685 , Operating transfers out (2,770,325 (5.835,638 Net other financing sources (uses) (2,597,095 (3,044,953 j Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (206,397) (866,071) Fund balance at beginning of year 1,981,147 4,605,628 Adjustment to reserve for fuel inventory - (35,592 Fund balance at end of year $ 1.774,750 SS 3,73 The accompanying notes are an integral part of these financial statements. 6 ' EXHIBIT 2 7 Totals (Memorandum Only) Debt Capital Service Proiects 1991 1990 S - S - S 3,163,663 S 2,895,805 - 266,774 21,207,220 20,689,400 - - 2,019,397 2,349,782 - - 581,519 370,886 . _ - 187,072 - 10,612 10,612 - - 216,710 216,710 8,316 - 25,072 992,729 639,669 472.101 236.608 1.656,900 2, 053 ,81 0 472,101 755,776 29,848.750 29,194.740 - - 127,479 66,425 - - 207,326 171,549 - - 235,235 243,883 - - 143,481 178,589 - - 313,393 257,692 - - 197,025 198,168 - - 215,401 205,157 - - 149,898 224,975 - - 434,762 338,3% - - 78,218 65,939 - - 75,013 61,759 - - 57,398 71,689 - - 3,171 2,586 - - 49,854 48,244 - - 1,226,344 1,126,776 - - 3,081 8,754 - - 17,525,084 16,506,343 - - 2,267,893 2,176,537 - - 190,700 180,500 - - 409,989 1,975,506 _ - - 39,083 - 1,038,556 1,038,556 707,827 - - 140,548 194,528 1,167,188 1,167,188 208,829 2,615,234 - 2,615,234 3.239.416 2.615.234 2.205.744 28.872,271 28,499,150 (2.143,133 (1,449,968 976.479 695.590 - - 550,000 4,524,236 3,608,730 11,096,881 7,432,629 (1,740.915 (740,000 (11,086,878 (7,505,629 2.783,321 2,868,730 10.003 477.000 640,188 1,418,762 986,482 1,172,590 6,835,420 2,633,656 16,055,851 14,880,276 - (35,592 2.985 S 7,475,608 S 4.052.418 $17,006,741 516,055,851 7 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND, SPECIAL REVENUE FUNDS AND DEBT SERVICE FUNDS YEAR ENDED JUNE 30, 1991 Revenues: Property taxes Intergovernmental: State sources Federal sources Land sale proceeds Exxon reimbursement Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures: Current: Borough Assembly Mayor's department Clerk's department Legal department Finance department Data services Assessment department Engineering facilities department Community development department Building inspector Resource management Switchboard /word processing Community and Regional Affairs liaison Economic development General administration Emergency preparedness Education support Health and sanitation Culture and recreation oil Spill Clean Up Capital outlay: Service District Maintenance Debt service: Principal Interest Fiscal agent fees Other Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out General Fund Budget Actual S 2,843,680 S 2,823,929 2,633,380 2,253,888 3,600 2,063 Variance - Favorable (Unfavorable) S (19,751) (379,492) (1,537) 110,130 100,868 (9,262) 370,000 456,381 86,381 5,960,790 5,637,129 (323,661 Budget Actual S 315,130 S 339,734 Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expen- ditures and other financing uses Fund balance at beginning of year Adjustment to reserve for fuel inventory Fund balance at end of year Special Revenue Funds 20,413,473 18,686,558 2,337,644 2,017,334 211,500 581,519 2,000,000 - 703,416 866,789 490,880 491,810 26,472,043 22,983,744 126,200 127,479 (1,279) - 204,750 207,326 (2,576) - 233,960 235,235 (1,275) - 150,280 143,481 6,799 - 312,930 313,393 (463) - 234,420 197,025 37,395 - 222,060 215,401 6,659 - 185,010 149,898 35,112 - 413,350 376,662 36,688 58,100 70,000 78,218 (8,218) - 74,500 75,013 (513) - 70,140 57,398 12,742 - 7,150 3,171 3,979 - 50,000 49,854 146 - 397,420 368,463 28,957 943,180 57,000 3,081 53,919 - 57,500 43,633 13,867 17,860,100 416,750 411,000 5,750 1,895,279 195,700 190,700 5,000 - - - - 4,573,600 - - - 190,550 3,479,120 3,246,431 232.689 2,481,670 2,390,698 (90,972 173,230 173,230 - (2,940,000 (2,770,325 169,675 (2,766,770 (2.597,095 169,675 S (2� (206,397) S 7 8,703 1,981,147 S1�0 58,100 857,881 17,481,451 1,856,893 409,989 140,548 25,520,809 20,804,862 951,234 2,178,882 3,012,653 2,790,685 (5,939,630 (5,835,638 (2,926,977 (3,044.953 S(1� (866,071) 4,605,628 (35,592 S 3,703,965 The accompanying notes are an integral part of these financial statements. 8 I ; u EXHIBIT 3 1 11 1 I[] (221,968) 103.992 (117,976 S 1,109,672 3,855,000 (1.740.230 2.114.770 S (5�,230 4,524,236 ( 1,740,915 ) 2,783.321 640,188 6,835,420 S 7.4 669,236 (685 668.551 $1,150,418 7,040,883 (10,619.860 (3.578.977 S(2�O�T3 7,488,151 (10.346.878 (2.858,727 (432,280) 13,422,195 (35,592 $12,954,323 447,268 272.982 720.250 SS 2.3 Debt Service Funds Totals (MewrandLA OMY) Variance - Variance - Variance - Favorable Favorable Favorable (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) S 24,604 S - S - f - 5 3,158,810 $ 3,163,663 f 4,853 (1,726,915) - - - 23,046,853 20,940,446 (2,106,407) (320,310) - - - 2,341,244 2,019,397 (321,847) 370,019 - - - 211,500 581,519 370,019 (2,000,000) - - - 2,000,000 - (2,000,000) 163,373 - - - 813,546 %7,657 154,111 930 375,000 472.101 97,101 1.235.880 1.420.292 184.412 (3,488.299 375.000 472.101 97,101 32.807.833 29.092.974 53,714.859 _ - - - 126,200 127,479 (1,279) _ - - 204,750 207,326 (2,576) _ - - - 233,960 235,235 (1,275) - - - - 150,280 143,481 6,799 _ - - - 312,930 313,393 (463) _ - - - 234,420 197,025 37,395 - - - - 222,060 215,401 6,659 - - 185,010 149,898 35,112 _ - - - 471,450 434,762 36,688 _ - - - 70,000 78,218 (8,218) _ - - - 74,500 75,013 (513) . _ - - 70,140 57,398 12,742 _ - - - 7,150 3,171 3,979 _ _ - 50,000 49,854 146 85,299 - - - 1,340,600 1,226,344 114,256 - - - - 57,000 3,081 53,919 378,649 - - - 17,917,600 17,525,084 392,516 38 - - - 2,312,029 2,267,893 44,136 - - - 195,700 190,700 5,000 4,163,611 - - - 4,573,600 409,989 4,163,611 50,002 - - - 190,550 140,548 50,002 - 1,595,840 1,595,833 7 1,595,840 1,595,833 7 - 1,093,000 947,381 145,619 1,093,000 947,381 145,619 - 100,000 71,974 28,026 100,000 71,974 28,026 - 211.160 46 211.114 211.160 46 211.114 4.715.947 3,000.000 2.615,234 384.766 31.999.929 26.666,527 5.333.402 1,227.648 (2.625.000 (2.143,133 481.867 807.904 2,426,447 1.618.543 (221,968) 103.992 (117,976 S 1,109,672 3,855,000 (1.740.230 2.114.770 S (5�,230 4,524,236 ( 1,740,915 ) 2,783.321 640,188 6,835,420 S 7.4 669,236 (685 668.551 $1,150,418 7,040,883 (10,619.860 (3.578.977 S(2�O�T3 7,488,151 (10.346.878 (2.858,727 (432,280) 13,422,195 (35,592 $12,954,323 447,268 272.982 720.250 SS 2.3 EXHIBIT 4 KODIAK ISLAND BOROUGH PROPRIETARY FUND TYPE - ENTERPRISE FUNDS ' t COMBINED STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS ' 4 YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 1991 1990 Revenues: Water sales $ 208,129 $ 191,450 Sewer service charges 265,031 234,935 Refuse collection 1,199,782 945,714 Sanitary services user fees 265,624 227,933 Patient revenues 6,420,280 5,945,858 Installation charges 6,365 7,117 Other 159,813 139,302 Total revenues 8,525,024 7,692,309 Operating expenses: Personnel services 334,234 221,966 . Waste collection 1,005,841 887,439 t Purchased water and sewer treatment Contracted services 355,196 15,763 297,243 23,465 ' Repairs and maintenance 97,078 54,152 Depreciation 723,576 696,787 Installation costs 67,680 - Professional care of patients 3,374,139 3,379,435 , Dietary 458,360 - Plant operations and household 718,356 618,580 General administrative 2,875,270 2,592,648 Other 691,389 450,020 Total operating expenses 10,716,882 9,221,735 Operating loss (2,191,858 (1,529,426 Other income: Interest income 240,892 329,737 Other, primarily State of Alaska revenue sharing 134,460 93,335 Loss on disposal of equipment (938) - Donor restricted gifts 93,249 - 467,663 423,072 i Loss before operating transfers (1,724,195) (1,106 , Operating transfers in (out) (10,000 73,000 Net loss (1,734,195) (1,033,354) Amortization of contribution in aid of construction 383,040 383,040 , Decrease in retained earnings (1,351,155) (650,314) Retained earnings at beginning of year 4,876,895 5,527,209 ' Retained earnings at end of year S 3,525,740 $ 4,876,895 The accompanying notes are an integral part of these financial statements. 10 1 ' KODIAK ISLAND BOROUGH PROPRIETARY FUND TYPE - ENTERPRISE FUNDS COMBINED STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 EXHIBIT 5 ' Operating loss 1991 S(2,191,858 1990 S(1,529,426 Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 723,576 696,787 ' Change in provision for uncollectible accounts 356,000 (82,718) Changes in assets and liabilities: Accounts receivable - Customers and patients (809,056) 383,911 City of Kodiak 48,394 103,749 ' Third party patient payors (47,644) (21,394) Prepaid expenses (13,751) 86,244 Inventories at cost 22,584 (22,619) Accounts payable 70,167 211,351 Due to other funds - (10,525) Customer deposits 19,743 2,786 Accrued compensation (5 763) (966) Other accrued liabilities 708.851 638 ' Total adjustments 1,019,101 1,347,244 Net cash used for operating activities (1,172,757 (182,182 Cash flows from noncapital financing activities: State of Alaska, Revenue Sharing payments received 159,460 109,460 Operating transfers (out to) in from other funds (10,000 73,000 Net cash provided by noncapital financing activities 149,460 182,460 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (146,142) (274,423) Net repayments on interfund capital - related expenditures - (6,055) Receipt of gifts restricted by donor for capital purchases 93,249 11,616 ' Proceeds from sale of equipment 35,187 Principal payments made on capital lease (12,485) Deposit made on capital lease (67,976 - Net cash used for capital and related financing ' activities (133,354 (233,675 Cash flows from investing activities: Change in assets whose use is limited: ' By Borough 109,190 (128,909) Under malpractice funding arrangements (257,990) - By donor for specific purpose (73,376) - Interest and dividends paid on investments 240,129 323,259 ' Net cash provided by investing activities 17,953 194,350 Net change in cash and cash equivalents (1,138,698) (39,047) ' Cash and cash equivalents at beginning of year 3,236,758 3,275,805 Cash and cash equivalents at end of year S 2,098,060 S 3,236,758 The accompanying notes are an integral part of these financial statements. ' 11 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Scope and Presentation of Financial Statements The Kodiak Island Borough (Borough) was organized to perform the municipal duties allowed by Alaska Statutes and as directed by its residents. The accompanying financial statements include all funds, account groups, agencies and organizations over which the Borough exercises oversight responsibility. Oversight responsibility is derived from the Borough's power and includes, but is not limited to (a) financial interdependency, (b) selection of governing authority, (c) ability to significantly influence operations and (d) accountability for fiscal matters. The Borough reviewed ' its relationship with other organizations and determined that it exercised oversight responsibility over the following two organizations. Kodiak Island Borough School District: The Borough has delegated the operating responsibility for public education to the Kodiak Island Borough School District (School District). In accordance with statutes, the Borough retains ownership of the educationally related fixed assets and incurs the debt, if necessary, to finance the acquisition and construction of school facilities. The Borough Assembly approves the total annual budget of the School District and may, during the year, increase or decrease the total appropriation. The Borough levies and collects taxes for the School 1 District. The various funds and the General Fixed Asset Account Group of the School District have been combined with similar fund types and account groups of the Borough. Kodiak Island Borough Hospital and Care Center: The Borough owns the Kodiak Island Borough Hospital and Care Center (Hospital) and related furnishings. The Borough has contracted the Hospital's operating activities to the Lutheran Health Systems ' Management Company. By terms of that agreement, operating losses sustained (as contractually defined), if any, are the ultimate responsibility of the Borough. Annual contributions, as well as direct payment for equipment and plant repairs, are made by the Borough to subsidize the Hospital's financial operations. These contributions and ' direct payments are recorded as expenditures of the Borough's General Fund or Capital Projects Funds. The financial position and operating results of the Hospital are included in these combined financial statements as an Enterprise Fund. ' Fiscal Year Ends ' The Borough has a June 30 year end. The School District, as required by State Statute, also has a June 30 year end. The Hospital has a December 31 year end and the accompanying financial statements include the financial position for the Hospital as of December 31, 1990, and the results of operations and cash flows for the year then ' ended. Presentation ' The combined financial statements provide a summary overview of the financial position of all funds and account groups and of the operating results of all funds. These combined statements have been prepared from the detailed statements included in the 13 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS , June 30, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Scope and Presentation of Financial Statements (Continued): combining and individual fund and account group statements and schedules included in this report. 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 changes in financial position in conformity with generally accepted accounting principles. Nor are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of these data. The accounting policies of the Borough conform to generally accepted accounting principles. FUND ACCOUNTING The accounts of the Borough are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. Operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Borough resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in the combined financial statements in this report into six generic fund types and three broad fund categories as follows: GOVERNMENTAL FUND TYPES General Fund - The General Fund is the general operating fund of the Borough. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest and related costs. Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for acquisition of equipment and acquisition or construction of major capital facilities. , 14 1 1 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30, 1991 NOTE 1 - SUKKARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Scope and Presentation of Financial Statements (Continued): PROPRIETARY FUND TYPE Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and /or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. Enterprise Funds are accounted for on a cost of services or capital maintenance measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with its activity are included on its balance sheet. Its reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. The Enterprise Fund operating statement presents increases (revenues) and decreases (expenses) in net total assets. Depreciation of all exhaustible fixed assets used by the Enterprise Funds is charged as an expense against their operations on a straight -line basis over the following estimated useful lives: Utility plant 50 years Hospital - building and fixed equipment 28 -33 years Major movable equipment 5 -10 years Contributions in aid of construction for the Water, Sewer and Sanitary Services Enterprise Funds are amortized over the estimated useful lives of the assets acquired using the straight -line method. FIDUCIARY FUND TYPE Agency Funds - To account for assets held by the Borough as an agent for individuals and other entities. These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. 1s NOTES TO A- STAT June 30. 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Scope and Presentation of Financial Statements (Continued): ACCOUNT GROUPS The accounting and reporting treatment applied to the fixed assets and long -term liabilities associated with a fund are determined by its measurement focus. Governmental Fund Types are accounted for on a spending or financial flow measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balances (net current assets) are considered a measure of available spendable resources. Governmental Fund Type operating statements present increases (revenues and other financial sources) and decreases (expenditures and other financial uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. The two account groups are not funds. They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. General Fixed Assets - Fixed assets used in Governmental Fund Type operations (general fixed assets) are recorded as expenditures of the various Borough funds at the time of purchase and are subsequently capitalized in the General Fixed Assets Account Group. Such assets include land, buildings, equipment, furniture and other related assets. Public domain (infrastructure) general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, are not capitalized. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. General Long -Term Debt - Long -term liabilities expected to be financed from Governmental Fund Types are accounted for in the General Long -Term Debt Account Group, not in the Governmental Fund Types. Noncurrent portions of long -term receivables due to Governmental Fund Types are ' reported on their balance sheets, in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered available spendable resources since they do not represent net current assets. Recognition of Governmental Fund Type revenues represented by noncurrent ' receivables is deferred until they become current receivables. Noncurrent installments of long -term loans receivable are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for Governmental Fund Types , is limited to exclude amounts represented by non - current liabilities. Since they do not affect net current assets, such long -term amounts are not recognized as Governmental Fund Type expenditures or fund liabilities. They are instead reported as I liabilities in the General Long -Term Debt Account Group. 16 1 ' KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont B. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the combined financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. Governmental Fund Types are accounted for using the modified accrual basis of accounting. Expenditures are generally recognized under the modified accrual basis of accounting ' when the related fund liability is incurred. An exception to this general rule is principal and interest on general long -term debt which is recognized when due. Prepayment of insurance and similar services extending over more than one year is allocated to the years benefited. ' Pursuant to this basis of accounting, material revenues which are both measurable and available are accrued and other revenues are recorded on the cash basis. 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 29.53.170, the Borough establishes the mill rate on or before June 15. Tax bills are then mailed on or before July 1st. ' Taxes are due when billed and generally become delinquent on or after October 15th. The Borough code also provides for split payments. If a taxpayer avails himself of ' this provision then one half must be paid on or before August 15th and the second half then becomes due on or before November 15th (in lieu of October 15th). Borough property tax revenues are recognized in the fiscal year for which they are levied and in which they become measurable and available. ' All taxes are delinquent on and after November 16th and a tax foreclosure process commences as outlined in Alaska Statutes Title 29. Briefly this entails the petition ' for Judgment of Foreclosure signed by the District Court Judge and the publication of all delinquent taxes in the local newspaper for four consecutive weeks. ' When copies of these actions are filed with the courts, delinquent properties have been effectively liened upon (generally in November). 1 17 i KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS , June 30, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Accounting (Continued): Intergovernmental Revenue State of Alaska shared revenues, State of Alaska municipal assistance and various 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 received within approximately two to three months after year end. State of Alaska and Federal government cost reimbursable grants and contracts (including grants for construction) are recorded to the extent of allowable expenditures in the period in which the expenditures were incurred. Revenue from Investments and Property Amounts earned on investment of available cash balances and the rental of building facilities are recorded in the period to which they relate, including accrual at year end of the balance due. Land Sales Proceeds and Other Local Revenues Amounts received pursuant to land sale contracts (long -term in nature) are recorded on the cash basis. Other local revenues are recorded on a basis consistent with their nature in relation to measurement and availability standards. The Proprietary Fund Type (Enterprise Fund) is accounted for using the accrual basis of accounting, wherein, revenues are recognized when earned and expenses are recognized when incurred. The Fiduciary Fund Type (Agency Fund) is accounted for using the modified accrual basis of accounting similar to that utilized by Governmental Fund Types. C. Budgets and Budgetary Accounting Borough The Borough follows these procedures in establishing the budgetary data reflected in the combined financial statements: 1. The Mayor must submit to the Borough Assembly by April 30 a proposed W operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted by the Borough Assembly to obtain taxpayer I comments. is I KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Budgets and Budgetary Accounting (Continued): 3. By June 10, the budget is legally enacted through passage of an ordinance by Borough Assembly action. If the Borough Assembly fails to pass an ordinance, the budget submitted by the Mayor becomes the adopted budget. 4. Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or administrative action. Generally, the following actions are required at the level of the particular change: (a) All new appropriations are authorized by an appropriation ordinance that amends the annual budget ordinance. (b) A resolution of the Borough Assembly is required to move (appropriate) amounts between departments and projects. (c) The administration is authorized and directed by the Borough Assembly to effect the necessary line item changes within the limits established by Items (1) and (2) above by project or department to properly monitor, account, and report receipts and expenditures. 5. Expenditures may not legally exceed appropriations at the following levels: General Fund - department level; Capital Projects Funds - project level; all other funds - fund level. 6. All funds, except Capital Projects Funds and the Oil Spill Clean Up Fund are budgeted on an annual basis encompassing a fiscal year. Budgets of Capital Project Funds and the Oil Spill Clean Up Fund generally encompass the period from start up to project completion, which is generally greater than one year. 7. Appropriations lapse at year end to the extent that they have not been ' expended for all funds except Capital Projects Funds and the Oil Spill Clean Up Fund, which lapse at project completion. n 1 19 KODIAK ISLAND BOROUGH , NOTES TO FINANCIAL STATEMENTS June 30. 1991 ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ' C. Budgets and Budgetary Accounting (Continued): 8. Budgets adopted by the Borough Assembly are in accordance with generally ' accepted accounting principles. 9. Additional appropriations of $495,000 for the General Fund, $12,000 for Alaska Coastal Management Grants, $300,000 for the Land Sales Fund, $1,755,230 for Debt Service, $1,967,530 for Borough Various Projects, $500,000 for School Bond Improvements and $423,770 for State Capital Grants and $700,000 for Major Maintenance were enacted during the year. Reductions in appropriations of $647,333 for the Mental Health Center were enacted during fiscal year 1991. School District Annual budgets are adopted by the School Board for all revenues, expenditures and interfund transfers. Budgets are prepared and presented on the modified accrual basis of accounting. Pursuant to Alaska Statutes, the adopted budget is submitted to the Borough Assembly for review and approval. The Borough Assembly is required to approve the School District budget in total only and, by ordinance, appropriate the necessary resources no later than April 30 of the current fiscal year. The School Board retains line item authority once the annual local appropriation is set by the Borough Assembly. In the year ended June 30, 1991, there were three formal budget revisions to adjust the revenues and expenditures to available resources and program needs. Hospital Hospital operations are not legally required to be budgeted. D. Assets, Liabilities and Fund Equity INTERFUND TRANSACTIONS Transactions that would be treated as revenues, expenditures or expenses if they involved organizations external to the Borough are similarly treated if they occur between the fund types. Reimbursements from one fund to another are treated as expenditures or 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. 20 KODIAK ISLAND BOROUGH pomat e m omm"m June 30, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities and Fund Equity (Continued): ENCUMBRANCES Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds and Capital Projects Funds. Encumbrances outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. INVENTORIES Borough Expendable operating supplies of the Borough are accounted for using the purchase method and, at June 30, 1991, there were no significant amounts of such items. School District Expendable operating supplies of the School District, consisting primarily of teaching, maintenance and food supplies, are accounted for using the consumption method. These inventories are valued at cost, except USDA food inventory (acquired at nominal price) which is recorded at replacement cost. Fuel inventory is accounted for using the purchase method and is recorded at cost, with cost determined on a first -in, first -out (FIFO) basis. Hospital Inventories are stated at the lower of cost or market, with cost determined substantially on a FIFO basis. RETIREMENT PLANS All full -time employees of the Borough and School District participate in either the Alaska Public Employees' Retirement System (PERS) or the Alaska Teachers' Retirement System (TRS). The Borough and School District accrue pension expense which includes current costs and amortization of prior service costs. The policy is to fund pension costs accrued. ANNUAL LEAVE The Borough (excluding the School District) records its liability for accrued annual leave in the Governmental Fund Types for the amounts estimated to be liquidated with current available resources. 21 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities and Fund Equity (continued): The commitment for accrued annual leave not included in the Governmental Fund Types is recorded in the General Long -Term Debt Account Group. Cash sufficient to pay the long -term debt is deposited in a Debt Service Fund. Enterprise Funds and the School District record leave (including sick leave) as earned. E. Cash Flows All highly liquid investments (including restricted assets) with original maturities of three months or less are considered cash equivalents for purposes of the statement of cash flows. Reclassification Certain 1990 balances have been reclassified to conform to the current year presentation. NOTE 2 - CASH AND TEMPORARY INVESTMENTS Cash balances of most Borough funds are pooled in a central treasury. Each fund type's portion of this pool is displayed on the combined balance sheet as "Equity in central treasury ". In addition, investments are separately held by several of the Borough's funds. Investments, other than the investment in the deferred compensation plan which is carried at market value, are carried at cost. Deposits At June 30, 1991, the carrying amount of the Borough's deposits was $2,112,124 and the bank balance was $2,731,262. The insured and collateral status of the year end bank balance was as follows: Status Amount Covered by federal depository insurance or by collateral held by the Borough's agent in the Borough's name $2,353,945 Uninsured and uncollateralized 377.317 Total deposits $2.7_ 3 22 1 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30. 1991 Investments NOTE 2 - CASH AND TEMPORARY INVESTMENTS (Continued) Statutes authorize the Borough to invest in obligations of the United States, the State of Alaska and its political subdivisions, savings accounts, certificates of deposit, banker's acceptances, repurchase agreements and such other legal security instruments. The Borough Code requires all investments to be collateralized and /or insured. Collateral pledged on investments is required to be held for the Borough by a third party bank. In accordance with Governmental Accounting Standards Board Statement No. 3 (GASB 3) investments are categorized as follows: Category 1 includes investments that are insured, or registered or for which the securities are held by the Borough or its agent in the Borough's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the Borough's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or by its trust department or agent but not in the Borough's name. Repurchase agreements U.S. Government Securities Investments held by fiscal agent for debt service ICMA - Deferred Compensation Plan Hospital's Mutual Fund Money Market Account Total Investments Cateaory 1 2 3 f - S 5,000,000 10, 072, 248 - 110.284 $10 S 5.110.284 $2,000,000 $2.000.000 Carrying Market Amount Value S 7,000,000 S 7,328,913 10,072,248 10,240,760 110.284 119.863 17,182,532 17,689,536 710,336 710,336 1,122,636 1,122,636 400.822 400.822 $19.416.326 S19�330 The above deposits of $2,112,124 and investments of $19,416,326 totalling $21,528,450, are reported under the following captions in the combined financial statements: Equity in central treasury $ 1,605,644 Temporary investments 16,314,695 Other cash and cash equivalents 1,374,086 ' Investment in deferred compensation plan 710,336 Assets whose use is limited: By Borough 658,377 Under malpractice funding arrangement held by trustee 257,990 By donor for purchase of equipment 73,376 Equity in central treasury 33,946 Temporary investments 500.000 Total deposits and investments $21.528.450 1 23 1 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30. 1991 NOTE 3 - ANNUAL APPROPRIATION TO THE SCHOOL DISTRICT An annual appropriation is made to the School District in order to provide the School District with total resources in a fiscal year equal in amount to budgeted expenditures. In addition to the annual appropriation, the Borough provides the School District, without charge, general liability and property insurance and the annual independent audit. NOTE 4 - HOSPITAL APPROPRIATION By terms of the operating agreement with the Lutheran Health Systems Management Company, the Borough is ultimately responsible for operating losses (as contractually defined), if any, sustained by the Hospital. Shared revenue received by the Borough from the State of Alaska includes $134,460, required to be passed through to the Hospital. The Borough recorded this amount as intergovernmental revenue and the pass- through as an expenditure for Hospital support. NOTE 5 - RETIREMENT COMMITMENTS As of June 30, 1991, substantially all employees of the Borough and School District participate in either the Alaska Public Employees' Retirement System (PERS, an agent multiple - employer PERS) or the Alaska Teachers' Retirement System (TRS, a cost - sharing, multiple - employer PERS. Borough personnel and School District classified personnel (except those working less than fifteen hours per week) participate in PERS. School District certificated personnel participate in TRS. Both systems are statewide defined benefit retirement plans, administered by the State of Alaska. Plan Descriptions and Provisions Public Employees' Retirement System (PERS Employees hired prior to July 1, 1986 with five or more years of credited service are entitled to annual pension benefits beginning at normal retirement age 55 or early retirement age 50. For employees hired after June 30, 1986, the normal and early retirement ages are 60 and 55, respectively. The normal pension benefit is equal to 28 of the member's three highest average monthly compensation for the first ten years of service, 2 -1/48 for the second ten years of service and 2 -1/28 for the third ten years of service. All service earned prior to July 1, 1986 will be calculated using the 28 multiplier. Employees with 30 or more years of credited service may retire at any age and receive a normal benefit. The system also provides death and disability benefits and major medical benefits. Under State law, covered employees are required to contribute 6.758 of their annual salary to the System and the Borough contributes the amount actuarially required in addition to employee contributions to finance the benefits of the system. 24 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS f June 30, 1991 NOTE 5 - RETIREMENT COMMITMENTS (Continued) Plan Descriptions and Provisions (Continued) Teachers' Retirement System (TRS) The Teachers' Retirement System of Alaska is a joint contributory retirement system to provide benefits for teachers of the State of Alaska. All the School District's certificated employees are participants in TRS. Membership in TRS is compulsory for each certificated elementary or secondary teacher or other certificated personnel who are employed on a full -time or part -time basis in positions that require teaching certificates as a condition of employment. Employees with fifteen years or more of credited service are entitled to pension benefits beginning at normal retirement age (55) equal to 28 of their highest three -year average monthly compensation for each year of service. The Plan permits early retirement at age 50. Employees may elect to receive their pension benefits in the form of a joint or survivor annuity. Effective January 1, 1987, a married member who retires must receive his benefit in the form of a joint and survivor annuity unless the member's spouse consents to another form of benefit. Minimum benefits for employees eligible for retirement are $25 per month for each year of credited service. 1 In addition, major medical benefits are provided. TRS also provides death and disability benefits. 1 Under State law, covered employees are required to contribute 78 of their base salary earned from July 1, 1990 to December 31, 1990 and 8.658 of their base salary earned from January 1, 1991 to June 30, 1991. The School District is required to contribute 1 the amount actuarially needed in addition to member contributions to finance the benefits of the System. Fun ding Status and Progress The pension benefit obligation is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the System on a going- concern basis, assess progress made in accumulating sufficient ' assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the System. 1 The pension benefit obligation was computed as part of an actuarial valuation as of June 30, 1990 (latest available). Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets ' of 9 percent per year compounded annually, (b) projected salary increases of 6.5 percent a year for the first five years of employment and 5.5 percent per year thereafter and (c) health cost inflation of 9 percent per year. 1 25 June 30, 1991 NOTE 5 - RETIREMENT COMMITMENTS (Continued) Funding Status and Progress (Continued) The pension benefit obligation of PERS and TRS as calculated in the most recent actuarial valuation is as follows ($ in thousands): PERS TRS (1) School All Borou District Employers Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1,941 $3,341 $ 940,475 Current employees: Accumulated employee contributions including allocated investment earnings 546 835 269,491 Employer- financed vested 1,182 2,599 587,835 Employer- financed nonvested 219 692 97.229 TOTAL PENSION BENEFIT OBLIGATION 3,888 7,467 1,895,030 Net assets available for benefits, valued on a three year average ratio between market and book values of the System's assets except that fixed income investments are valued at book value 4.227 8.751 1.662.242 ASSETS IN EXCESS OF (UNFUNDED) PENSION BENEFIT OBLIGATION 339 $1,284 $ (2��8 (1) The TRS system does not make separate measurements of assets and pension benefit obligation for individual employers. Amounts for TRS represent the system as a whole. The School District's actuarially determined contribution was 1.7% of the total current year actuarially determined contribution requirements for all employers. Actuarially Determined Contribution Requirements and Contributions Bade The funding policy provides for actuarially determined periodic contributions at rates that fund each participant's benefits under the plan as they accrue. The contribution rate for normal cost is determined using the projected unit credit actuarial funding method. The unfunded accrued benefit liability is amortized over 25 years. Actuarial funding surpluses are amortized over five years. The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation. 41 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS 1 June 30, 1991 NOTE 5 - RETIREMENT COMMITMENTS (Continued) Actuarially Determined Contribution Reauirements and Contributi Made (Continued ' The Systems have an actuarial valuation performed annually (as of June 30) which determines the contribution rates for the year ended two years subsequent to the valuation date. The contributions to the Systems for fiscal year 1991 were made in ' accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1990. The contributions ($ in thousands) consisted of the following: PERS PERS Borough School District TRS Percent of Percent of Percent of Covered Covered Covered Amount Payroll Amount Payroll Amount Payroll ' Covered payroll- 52,418 100% 52.615 100 58.272 100% Contributions - Normal cost - Total contributions paid S 346 14.30% 1 S 314 11.99% 51,505 18.20% Amortization of unfunded liability - - - 34 .41 TOTAL S 346 14.30% S 314 11.99 $1.539 18.61% Required contributions- Employer S 183 7.55% S 137 5.24% S 872 10.54% ' Employee 163 6.75 177 6.75 667 8.07 TOTAL S 346 14.30% S 314 11.99 i1,539 18.61% 1 In addition to the required TRS contributions noted above, the School District made supplemental and arrearage payments of $75,208 during the year. ' Total current year payroll for the Borough and School District was $2,618,208 and $11,218,603 respectively. Valuation of Medical Benefits Medical benefits for retirees are provided by the payment of Medicare premiums from PERS and TRS. In fiscal 1991 the pre -65 cost of $319 and post -65 cost of $122 (due to Medicare) were assumed such that the total blended rate for all retirees of $244 equals the present premium rate. These medical premiums are then increased with the health inflation assumption. The actuarial cost method used for funding retirement benefits is also used to fund health benefits. 1 27 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30. 1991 NOTE 5 - RETIREMENT COMMITMENTS (Continued Historical Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. The pension benefit obligation has not been determined by the actuary for years prior to June 30, 1987. As a result, only information at June 30, 1990, 1989, 1988, and 1987 is available regarding the following trend indicators, ($ in thousands): 28 PERS School Borou¢h District Net asset available for benefits: 1987 $2,222 $5,685 1988 2,896 7,111 1989 3,468 7,794 1990 4,227 8,751 Pension benefit obligation (PBO): 1987 $1,929 $5,085 1988 2,680 6,477 1989 3,328 7,331 1990 3,888 7,467 Net assets available for benefits as a percentage of PBO: 1987 115% 112% 1988 108 110 1989 104 106 1990 109 117 Assets in excess of PBO: 1987 $ 294 $ 600 1988 216 634 1989 140 463 1990 339 1,284 Annual covered payroll: 1987 $1,830 $2,473 1988 2,131 2,526 1989 2,373 2,562 1990 2,418 2,615 28 1 1 1 1 1 1 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30, 1991 NOTE 5 - RETIREMENT COMMITMENTS (Continued) Historical Trend Information (Continued) PERS School Borou District Assets in excess of PBO expressed as percentage of annual covered payroll Contribution rates: Employee Employer 1987 16.07% 24.26% 1988 10.14 25.10 1989 5.90 16.20 1990 14.02 49.10 1987 6.75% 6.758 1988 6.75 6.75 1989 6.75 6.75 1990 6.75 6.75 1991 6.75 6.75 1987 4.278 7.298 1988 9.20 6.24 1989 9.20 6.24 1990 5.34 4.27 1991 7.55 5.24 29 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30, 1991 NOTE 6 - FIXED ASSETS A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1991 follows: The following is a summary of Enterprise Fund fixed assets at June 30, 1991: Unclassified utility plant in service $17,874,572 Hospital building and fixed equipment 4,219,590 Major movable equipment 2,076,074 Land 40.276 24,210,512 Less: accumulated depreciation (4.847.882 19,362,630 Construction work in progress 32.395 Net Fixed Assets $19.395.025 NOTE 7 - DEMAND BONDS Lone -Term Debt Included in long -term debt is $5,000,000 of general obligation demand bonds maturing serially through June 1, 1996 backed by the full faith, credit, and taxing power of the Borough. The bonds were issued pursuant to an ordinance adopted by the Borough Assembly on February 6, 1986. The proceeds of the bonds were used to (a) provide funds for certain school improvements and (b) pay costs incurred to issue the bonds. The redemption schedule for these bonds is included in the bond redemption schedule in Note 8. 30 Balance at Balance at July 1. 1990 Additions Deductions June 30, 1991 Land $ 7,469,315 $ - $ - $ 7,469,315 Buildings 64,302,588 488,221 - 64,790,809 Improvements other than buildings 842,139 - - 842,139 Machinery and equipment 3,540,096 678,690 (84,233) 4,134,553 Construction work in progress 1.819.351 573.120 (899.359 1.493.112 $77.973.489 $1.7_ $ (983.592 $78.729.928 The following is a summary of Enterprise Fund fixed assets at June 30, 1991: Unclassified utility plant in service $17,874,572 Hospital building and fixed equipment 4,219,590 Major movable equipment 2,076,074 Land 40.276 24,210,512 Less: accumulated depreciation (4.847.882 19,362,630 Construction work in progress 32.395 Net Fixed Assets $19.395.025 NOTE 7 - DEMAND BONDS Lone -Term Debt Included in long -term debt is $5,000,000 of general obligation demand bonds maturing serially through June 1, 1996 backed by the full faith, credit, and taxing power of the Borough. The bonds were issued pursuant to an ordinance adopted by the Borough Assembly on February 6, 1986. The proceeds of the bonds were used to (a) provide funds for certain school improvements and (b) pay costs incurred to issue the bonds. The redemption schedule for these bonds is included in the bond redemption schedule in Note 8. 30 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30, 1991 NOTE 7 - DEMAND BONDS (Continued) Long -Term Debt (Continued) The bonds are subject to purchase on the demand of the holder at a price equal to principal plus accrued interest on seven days' notice and delivery to the Borough's remarketing agent, John Nuveen and Co. The remarketing agent is authorized to use its best efforts to sell the repurchased bonds at a price of not less than the principal amount plus accrued interest. Under an irrevocable letter of credit issued by Barclays Bank PLC, the trustee is entitled to draw an amount sufficient to pay the purchase price of bonds delivered to it. The letter of credit is valid through August 29, 1991, the date the bonds were refunded (see Note 8) and carries a variable interest rate which increases over time from the institution's prime lending rate to prime plus 1 -1/2 %. If the remarketing agent is unable to resell any bonds that are "put" within the notice period then the Borough has 365 days to repay the bank. The Borough is required to pay to Barclays Bank PLC an annual commitment fee for the letter of credit of 3/4 of 1 percent per annum of the outstanding principal amount of the bonds, plus 65 days of interest at an interest rate of 15 percent. The Borough has also paid a letter of credit fee of $25,000 to Barclays Bank PLC. In addition, the remarketing agent receives an annual fee of one - eighth of 1 percent of the outstanding principal amount of the bonds. 31 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30, 1991 NOTE 8 - LONG -TERN DEBT The following is a summary of long term debt payable for the year ended June 30, 1991: Principal Interest Payments Issue Maturity Type of Debt Rates Dates Date Date Dates Amo Loans Payable: Enviromental Protection Agency Asbestos Abatement General Obligation Serial Bonds: Schools, Multi - projects 0.0X* - 6/20/85 11/8/05 Variable Quarterly 5/28/86 06/01/96 12/31/91 S 10,417 06/30/92 to 10,417 06/30/04 x 25 12/31/04 10.406 Schools, Refunding 6.6-8% 8/1 -2/1 5/1/89 8/1/2000 8/1/91 281.248 8/1/92 9/1/91 250,000 12/1/91 250,000 3/1/92 250,000 6/1/92 250,000 9/1/92 250,000 12/1/92 250,000 3/1/93 250,000 6/1/93 250,000 9/1/93 250,000 12/1/93 250,000 3/1/94 to 250,000 6/1/96 x 10 Schools, Refunding 6.6-8% 8/1 -2/1 5/1/89 8/1/2000 8/1/91 630,000 8/1/92 680,000 8/1/93 725,000 8/1/94 780,000 8/1/95 835,000 8/1/96 890,000 8/1/97 945,000 8/1/98 1,015,000 8/1/99 1,080,000 8/1/00 1.155.000 8.735.000 $14$14 0y` * Interest free unless delinquent; then 7% plus fees and penalties. 32 1 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30, 1991 Authorized Prior Years Current Year Balance at Balance at Year Amount Issued Retired July 1. 1990 Issued Retired Jura 30, 1991 1985 S 375,000 S 375,000 S 72,918 S 302,082 S - S 20,834 S 281,248 1986 9,930,000 9,930,000 3,930,000 6,000,000 - 1,000,000 5,000,000 1989 10,000.000 10.000.000 690.000 $20,305,000 $20.305,000 54,692,918 9.310,000 - 575.000 $15.612.082 S - $1,595,834 8,735.000 $14,0 33 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS , June 30. 1991 , NOTE 8 - LONG -TERM DEBT (Continued A summary of long -term debt as of and for the ended June 30, 1991 follows: , year Balance at Balance at July 1. 1990 Additions Deductions June 30. 1991 General obligation bonds $15,310,000 $ - $1,575,000 $13,735,000 EPA loan payable 302,082 - 20,834 281,248 Accrued annual leave 151.676 16.202 - 167.878 $15.763.758 $16,202 $1.5_ $14.184.126 The annual requirements to amortize all general obligation debt and the EPA loan payable outstanding as of June 30, 1991, including interest payments of $4,680,044 on the general obligation debt, are as follows: June 30, 1992 2,620,819 1993 2,542,939 1994 2,463,059 1995 2,389,847 1996 2,312,976 1997 1,262,032 1998 1,256,511 1999 1,261,779 2000 1,256,744 2001 1,256,684 2002 -2005 72.902 $18.696.292 The amount of $7,475,608 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 During 1974, the Borough defeased existing school bonds by utilizing the proceeds of bonds then issued. The proceeds from the "refunding bonds" (issued in the amount of $2,325,000) have been invested in U.S. Government securities at an interest rate which 34 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30, 1991 NOTE 8 - LONG -TERM DEBT (Continued) will result in a return of proceeds that, when added to the securities' principal balances, will be sufficient to meet the interest and principal requirements of the defeased bonds. The investments in the securities and the current obligations of the defeased bonds are not reflected in the combined financial statements. At June 30, 1991 the Security Pacific Bank at Seattle held investments in trust sufficient to pay the outstanding principal plus accrued interest on the general obligation school bonds, Series 1980. In 1989 the Borough sold $10,000,000 general obligation bonds to advance refund general obligation bonds totalling $9,495,000. The proceeds of the refunding issue were placed in a special escrow account and have been invested in securities of the U.S. Government and its. agencies. The maturities of these investments coincide with the principal and interest payment dates of the refunded bonds and are sufficient to pay all principal and interest on the bonds when due as required by applicable laws. Accordingly, the refunded bonds have been eliminated from the long -term debt and the advance refunding bonds added. Demand Bond Refunding - Subsequent to June 30, 1991 On August 29, 1991 Kodiak Island Borough issued $4,875,000 in General Obligation School Refunding bonds, 1991 Series A, to refund the 1986 Series A General Obligation Variable Rate Demand Bonds. The interest rate on the bonds will vary from 4.65% to 5.908 and will be paid in semi - annual installments commencing December 1, 1991 with the last installment due June 1, 1996. Proceeds from the issuance were used as follows: Deposit to principal and interest fund to pay off refunded issue Costs of issuance Original issue discount ' Total I NOTE 9 - CAPITAL PROJECTS FUNDS CONSTRUCTION COMMITMENTS $4,738,047 126,938 10.015 $4.875.000 A summary of Capital Projects Funds construction commitments at June 30, 1991 follows: ' Various Borough Projects State Capital Grants Fund $657,793 51.650 09 443 1 35 KODIAK ISLAND BOROUGH June 30. 1991 Resources are presently available or committed to finance construction commitments at June 30, 1991 for all funds except the School Bond Improvements Fund. The additional resources required in this fund will be available during fiscal year 1992. NOTE 10 - ENTERPRISE FUNDS SEGMENT INFORMATION The Borough owns and operates a Water and Sewer Utility Fund and a Sanitary Services Fund. The Kodiak Island Borough Hospital and Care Center is included in the Borough's financial statements as a component unit. Segment financial data as of and for the year ended June 30, 1991 for the Sanitary Services, Water and Sewer Utilities and as of and for the year ended December 31, 1990 for the Hospital are as follows: NOTE 11 - DEFERRED COMPENSATION PIAN The Kodiak Island Borough has a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is available to all permanent Borough employees. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and the right of the Borough (without being restricted to the provisions of benefits under the plan), subject only to the claims of the Borough's general creditors. Participants' rights under the plan are equal to those of general creditors of the Borough in an amount equal to the fair market value of the deferred account for each participant. The funds are managed by the International City Managers Association Retirement Corporation. The Borough has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Borough believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 36 Sanitary Water Sewer Services Utility Utility Hospital Total Operating revenues $1,474,319 S 225,240 S 267,984 S 6,557,481 S 8,525,024 Depreciation 77,923 109,653 196,612 339,388 723,576 Operating loss (54,968) (183,366) (177,001) (1,776,523) (2,191,858) Operating grants entitlements - - - 134,460 134,460 Operating transfers out (10,000) - - - (10,000) Net loss (65,081) (150,968) (160,139) (1,358,007) (1,734,195) Contributions in aid of construction: Amortization 76,805 109,645 196,590 - 383,040 Property, plant and equipment additions - - - 287,459 287,459 Net working capital 17,983 209,130 77,439 1,848,446 2,152,998 Total assets 2,404,606 5,537,573 9,166,542 7,533,872 24,642,593 Total equity 2,311,644 5,416,932 9,145,557 6,167,879 23,042,012 NOTE 11 - DEFERRED COMPENSATION PIAN The Kodiak Island Borough has a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is available to all permanent Borough employees. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and the right of the Borough (without being restricted to the provisions of benefits under the plan), subject only to the claims of the Borough's general creditors. Participants' rights under the plan are equal to those of general creditors of the Borough in an amount equal to the fair market value of the deferred account for each participant. The funds are managed by the International City Managers Association Retirement Corporation. The Borough has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Borough believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 36 KODIAK ISLAND BOROUGH ' NOTES TO FINANCIAL STATEMENTS June 30. 1991 NOTE 12 - MALPRACTICE INSURANCE AND RELATED LITIGATION ' As of January 1, 1990, the Hospital has self- insured itself for medical malpractice claims up to a maximum of $500,000 per occurrence and $1,000,000 in aggregate. In ' addition, the Hospital has purchased stop loss insurance for claims up to $3,000,000 per occurrence and $6,000,000 in aggregate. The Hospital is required to deposit money into a fund, up to $1,000,000, which is held by a trustee. The balance in the fund at December 31, 1990 is $257,990 and is principally invested in U.S. Government ' obligations and is valued at cost, which approximates market. Prior to January 1, 1990 the Hospital was insured under a claims -made policy. The Hospital has not purchased tail coverage and therefore, claims based on occurrences prior to January 1, 1990 but ' reported subsequently will be uninsured. In July 1991, subsequent to the Hospital's December 31, 1990 year end and subsequent to the issuance of other independent accountant's report relating thereto, the Hospital settled on -going malpractice litigation which resulted in a liability of approximately $700,000. The financial statements of December 31, 1990 reported on by other independent accountants have been adjusted to reflect the settlement. Management is not aware of any other claims against this fund that need to be accrued. NOTE 13 - INDIVIDUAL FUND DISCLOSURES Interfund Receivables and Pa A summary of interfund receivables and payables at June 30, 1991 is as follows: Receivable Payable Special Revenue Funds - Land Sales $ 165,000 $ - Special Revenue Funds - Mental Health Center 165,000 Special Revenue Funds - Building and Grounds 75,000 - Special Revenue Funds - Day Care - 20,000 Special Revenue Funds - Coastal Management 40,000 Special Revenue Funds - Hospital Oil Spill - 15,000 Special Revenue Funds - Education 1,995,115 17,670 General Fund - 1,995,115 Capital Projects 152.670 $2.3 -_ $2.2$2.2- Because the Hospital has a December 31 year end, an interfund payable of $135,000 from the Hospital Fund to the General Fund is not recorded on the Hospital balance sheet. Accordingly, the due to other funds and the due from other funds in the combined financial statements differ by $135,000. 37 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30. 1991 NOTE 13 - INDIVIDUAL FUND DISCLOSURES (Continued) Fund Deficits The fund deficit at June 30, 1991 is as follows: Capital Projects - State Capital Grants $27,019 This deficit will be funded in fiscal year 1992 through transfers from other funds. Interfund Transfers Interfund operating transfers have been made in accordance with budget ordinances with the exceptions of the transfer of the funding of long -term annual leave. 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 during the year ended June 30, 1991, were as follows: Fund Type Operating transfers: General Fund Special Revenue Debt Service Capital Projects Enterprise Total Operating Transfers Transfers In Special Debt Capital Transfers General Revenue Service Projects out Fund Funds Funds Funds S 2,770,325 S - 52,770,000 S 328 S - 5,835,638 73,230 10,000 4,523,908 1,228,500 1,740,915 - 685 - 1,740,230 740,000 100,000 - - 640,000 10.000 - 10.000 - - $11 0�8�78 $173,230 $2 90 S4 5�� _,6 _ Excess of Expenditures Over Appropriations General Fund The following departments' expenditures exceeded their appropriations: Department Excess Borough Assembly $ 1,279 Borough Mayor 2,576 Clerk's Department 1,275 Finance Department 463 Building Inspector 8,218 Resource Management 513 $ 14,324 38 KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATEMENTS June 30. 1991 NOTE 13 - INDIVIDUAL FUND DISCLOSURES (Continued) The following funds' expenditures exceeded their appropriations: Special Revenue Funds Fund Excess Day Care $22 $ 22,727 Enterprise Funds Fund Excess Sanitary Services $152,917 Water 202,606 Sewer 192.845 $548.368 11 Proprietary Funds reconciliation of Fund equity for the year ended June 30, 1991, except for the Hospital which is for the year ended December 31, 1990. Sanitary Water Sewer Services Utility Utility Hospital Total Fund equity at beginning of year $2,376,725 $5,567,900 $9,305,696 S 7,525,886 $24,776,207 Net loss (65.081 (150,968 (160,139 (1,358.007 (1.734,195 Fund equity at end of year 52,311,644 $5,416,932 S9,145,557 $6,167,879 523.042.012 NOTE 14 - CONTINGENCIES Litigation Oil Spill - The Borough is involved in litigation seeking recovery from Exxon and others for damages it sustained as a result of the Exxon Oil Spill. Although the Borough's claim is in excess of $1,000,000, at this time it is not possible to determine the amount, if any, of damages it will ultimately be awarded. 39 KODIAK ISLAND BOROUGH June 30, .. NOTE 14 - CONTINGENCIES (Continued) General - The Borough, in the normal course of its activities, is involved in various claims and pending litigation. In the opinion of management, the disposition of the claims and litigation is not presently expected to have a material adverse effect on the Borough's financial statements. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by the grantor agencies. Any disallowed claims, including amounts already collected, would become a liability of the General or other applicable funds. In management's opinion, disallowances, if any, will be immaterial. NOTE 15 - SUBSEQUENT EVENTS Severance Tax Subsequent to June 30, 1991 the Borough implemented a severance tax on those entities that harvest natural resources. Management estimates the tax will generate $400,000 to $600,000 annually in additional revenues for the Borough. 40 GENERAL FUND ' The General Fund accounts for the financial operations of the Borough that are not required to be accounted for in any other fund. Principal sources of revenue are property taxes and intergovernmental revenues. Primary expenditures in the ' General Fund are for general governmental and public services. u r- I r� EXHIBIT A -1 KODIAK ISLAND BOROUGH GENERAL FUND BALANCE SHEET JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 ASSETS 1991 Equity in central treasury $ 120,251 Temporary investments 3,586,982 Other cash and cash equivalents - Total cash and investments 3,707,233 Receivables: State of Alaska 49,310 Property taxes: Delinquent taxes 59,745 Allowance for uncollectible delinquent taxes (17,667) Accrued interest receivable 48,266 Other - Net receivables 139,654 Prepaid expenses 37,250 S3,8 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable Payroll taxes and employee benefits Other accrued liabilities Due to other funds Total liabilities Fund balance: Reserved for encumbrances Unreserved - designated for subsequent year expenditures Total fund equities $ 92,897 18,167 3,208 1,995,115 2,109,387 1,774,750 1,774,750 S3,884,137 1990 $ 110,383 5,533,336 2,456 5,646,175 50,859 28,640 (13,327) 111,622 172 177,966 158,894 S5,983,035 $ 40,076 934 3,960,878 4,001,888 2,051 1,979,096 1,981,147 S5,9 42 EXHIBIT A -2 KODIAK ISLAND BOROUGH t GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 1991 Variance - Favorable 1990 Budget Actual (Unfavorable) Actual Revenues: ' Property taxes: Real $1,861,920 $1,806,671 $ (55,249) $1,700,685 Personal 331,800 355,227 23,427 256,006 Motor vehicle 160,000 175,433 15,433 180,265 Penalty and interest 45,000 41,129 (3,871) 51,835 Payments in lieu of taxes 444,960 445,469 509 451,253 Total property taxes 2,843,680 2,823,929 (19,751 2,640,044 ' Intergovernmental: State sources: State shared revenue 581,770 581,772 2 696,621 Municipal assistance 556,300 581,558 25,258 596,297 ' Raw fish tax 1,486,000 1,082,779 (403,221) Electric co -op tax 8000 7,055 (1,645) 16,412 Miscellaneous 610 724 114 610 Total State sources 2,633,380 2,253,888 (379,492) 1,309,940 Federal sources 3,600 2,063 (1,537 6,298 Total intergovern- mental revenue 2,636,980 2,255,951 (381,029 1,316,238 Licenses, permits, fees and other local revenues: Building and trailers 25,000 14,770 (10,230) 34,032 Subdivision and zoning fees 9,500 8,537 (963) 10,848 Sale of copies 3,100 5,923 2,823 - ' Switchboard services 15,000 15,496 496 12,867 Emergency medical services 33,000 26,817 (6,183) 27,370 Miscellaneous 24,530 29,325 4,795 35,028 Total licenses, permits ' fees and other local sources 110,130 100,868 (9,262 120,145 Investments and property: Interest income 360,000 431,825 71,825 537,228 Gain on exchange 10,000 24,556 14,556 - Lease rentals on land ' and buildings Total investments - - - 3,623 and property 370,000 456,381 86,381 540,851 Total revenues $5,960,790 $5,637,129 $(323,661 $4,617,278 ' 43 Continued EXHIBIT A -2 (Continued KODIAK ISLAND BOROUGH GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Expenditures: 1991 Variance - Favorable 1990 Budget Actual (Unfavorable) Actual Borough Assembly $ 126,200 $ 127,479 $ (1,279) $ 66,425 Mayor's department 204,750 207,326 (2,576) 171,549 Clerk's department 233,960 235,235 (1,275) 243,883 Legal services 150,280 143,481 6,799 178,589 Finance department 312,930 313,393 (463) 257,692 Data services 234,420 197,025 37,395 198,168 Assessment department 222,060 215,401 6,659 205,157 Engineering facilities department 185,010 149,898 35,112 224,975 Community development department 413,350 376,662 36,688 301,586 Building inspector 70,000 78,218 (8,218) 65,939 Resource management 74,500 75,013 (513) 61,759 Switchboard /word processing 70,140 57,398 12,742 71,689 Community and Regional Affairs liaison 7,150 3,171 3,979 2,586 Economic development 50,000 49,854 146 48,244 General administration 397,420 368,463 28,957 371,624 Emergency preparedness 57,000 3,081 53,919 8,754 Educational support 57,500 43,633 13,867 54,150 Health and sanitation 416,750 411,000 5,750 367,921 Culture and recreation 195,700 190,700 5,000 180,500 Total expenditures S3,479,120 S3,246,431 S232,689 S3,081,190 Continued 44 1 1 1 1 1 1 1 1 1 1 1 1 EXHIBIT A -2 (Continued KODIAK ISLAND BOROUGH GENERAL FUND STATEMENT OF REVENUES EXPENDITURES TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Excess of revenues over expenditures Operating transfers in: Special Revenue: Land Sales Capital Projects: Various Borough projects Operating transfers out: Special Revenue: Education Mental Health Buildings and grounds Capital Projects: Various Borough projects Debt Service: Other Enterprise Funds: Hospital Net operating trans- fers out Deficiency of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year 1991 Variance - Favorable 1990 Budaet Actual (Unfavorablel Actual S 2,481,670 S 2,390,698 S(90,972 S 1,536,088 73,230 73,230 100,000 100,000 173,230 173,230 2,270,000 210,000 460,000 2,100,000 210,000 460,000 325 2,940,000 2,770,325 (2,766,770 (2,597,095 68,790 68,790 170,000 2,100,000 - 140,000 450,000 - 10,000 (325) 9,102 - 13,000 169,675 2,722,102 169,675 (2,653,312 S (285,100 (206,397) S 78,703 (1,117,224) 1,981,147 S 1,774,750 45 3,098,371 S 1,981,147 EXHIBIT A -3 KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Continued 46 1991 Variance - Favorable 1990 Budoet Actual (Unfavorable) Actual Expenditures: Borough Assembly: Personnel services $ 16,800 $ 15,400 $ 1,400 $ 15,856 Fringe benefits - 891 (891) 241 Support, goods & services 62,400 66,450 (4,050) 28,328 Lobbyist 47,000 44,738 2,262 22,000 Total 126,200 127,479 (1,279 66,425 Mayor's department: Personnel services 140,240 139,219 1,021 99,116 Fringe benefits 39,710 39,531 179 21,266 Support, goods & services 24,800 28,576 (3,776) 33,965 Capital outlay - - - 17,202 Total 204,750 207,326 (2,576 171,549 Clerk's department: Personnel services 122,830 128,712 (5,882) 120,115 Fringe benefits 39,130 35,335 3,795 25,888 Consultant 2,500 2,500 - - Support, goods & services 69,500 67,112 2,388 93,738 Capital outlay - 1,576 X1,576 4,142 Total 233,960 235,235 (1,275 243,883 Legal services: Legal fees 130,800 123,612 7,188 156,387 Support, goods & services 19,480 19,869 (389 22,202 Total 150,280 143,481 6,799 178,589 Finance department: Personnel services 202,530 201,722 807 192,621 Fringe benefits 70,800 68,668 2,132 40,503 Support, goods & services 38,600 43,003 (4,402) 39,447 Capital outlay 1,000 - 1,000 2,220 Allocated to projects - - - (17,099 Total 312,930 313,393 (463 257,692 Continued 46 EXHIBIT A -3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Data services: Personnel services Fringe benefits ' Contracted services Support, goods & services Capital Outlay Allocated to projects Total Assessing department: Personnel services ' Fringe benefits Contracted services Support, goods & services Capital outlay ' Total Engineering /Facilities department: ' Personnel services Fringe benefits Contracted services Support, goods & services Capital outlay Allocated to projects Total 150,410 46,950 500 19,200 5,000 222,060 139,400 44,410 25,000 35,200 1,000 (60,000 185,010 Community development department: Personnel services 254,860 Fringe benefits 89,030 Contracted services 18,500 Support, goods & services 36,960 Capital Outlay 14,000 Allocated to projects - Total 413,350 146,081 47,192 106 21,668 354 215,401 123,894 49,698 20,834 23,109 969 (68,606 149,898 235,637 74,977 5,584 49,155 23,079 (11,770 376,662 4,329 (242) 394 (2,468) 4,646 6,659 15,506 (5,288) 4,166 12,091 31 8,606 35,112 19,223 14,053 12,916 (12,195) 9,079 11,770 36,688 144,578 32,695 26,020 1,864 205,157 212,309 44,203 49,015 1,599 (82,151 224,975 192,268 46,568 38,164 24,586 301,586 Building inspector's department: Contracted services 70,000 78,036 (8,036) Support, goods & services - 182 (182 Total 70,000 78,218 (8,218 65,939 65,939 47 Continued 1991 Variance - Favorable 1990 Budget Actual (Unfavorable) Actual $ 207,240 $ 178,414 $ 28,826 $ 171,222 67,280 48,941 18,339 37,482 6,825 (6,825) 48,400 59,564 (11,164) 48,051 46,500 47,072 (572) 46,935 (135,000 (143,791 8,791 (105,522 234,420 197,025 37,395 198,168 150,410 46,950 500 19,200 5,000 222,060 139,400 44,410 25,000 35,200 1,000 (60,000 185,010 Community development department: Personnel services 254,860 Fringe benefits 89,030 Contracted services 18,500 Support, goods & services 36,960 Capital Outlay 14,000 Allocated to projects - Total 413,350 146,081 47,192 106 21,668 354 215,401 123,894 49,698 20,834 23,109 969 (68,606 149,898 235,637 74,977 5,584 49,155 23,079 (11,770 376,662 4,329 (242) 394 (2,468) 4,646 6,659 15,506 (5,288) 4,166 12,091 31 8,606 35,112 19,223 14,053 12,916 (12,195) 9,079 11,770 36,688 144,578 32,695 26,020 1,864 205,157 212,309 44,203 49,015 1,599 (82,151 224,975 192,268 46,568 38,164 24,586 301,586 Building inspector's department: Contracted services 70,000 78,036 (8,036) Support, goods & services - 182 (182 Total 70,000 78,218 (8,218 65,939 65,939 47 Continued EXHIBIT A -3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 1991 Variance - Favorable Budget Actual (Unfavorable) Resource management: i 1990 , Actual Personnel services $ 51,050 $ 51,313 $ (263) $ 48,443 Fringe benefits 19,450 21,381 (1,931) 12,013 Support, goods & services 4,000 4,358 (358) 3,934 Capital outlay - 1,311 (1,311) - Allocated to projects - (3,350 3,350 (2,631 Total 74,500 75,013 (513 61,759 Switchboard /Word processing: Personnel services 53,390 44,000 9,390 58,112 Fringe benefits 16,050 11,427 4,623 13,068 Support, goods & services 700 1,971 (1,271 509 Total 70,140 57,398 12,742 71,689 Community and Regional Affairs liaison: Support, goods & services 7,150 3,171 3,979 2,586 Total 7,150 3,171 3,979 2,586 Economic development: General services - Contracted services 30,000 28,441 1,559 - Support, goods & services - 1,413 (1,413) 28,244 Contributions - Kodiak Chamber of Commerce 5,000 5,000 - 5,000 Kodiak Convention Bureau 15,000 15,000 15,000 Total 50,000 49,854 146 48,244 General administration: Fringe benefits 40,000 39,950 50 936 Audit expense 124,000 103,738 20,262 121,258 Support, goods & services 216,420 205,022 11,398 233,100 Capital outlay 17,000 19,753 (2,753 16,330 Total 397,420 368,463 28,957 371,624 Emergency preparedness: Support, goods & services 7,000 3,081 3,919 5,016 Capital outlay 50,000 - 50,000 3,738 Total 57,000 3,081 53,919 8,754 Continued 48 EXHIBIT A -3 (Continued Total 416,750 411,000 5,750 367,921 KODIAK ISLAND BOROUGH GENERAL FUND 12,000 12,000 SCHEDULE OF EXPENDITURES AND TRANSFERS - 9,000 9,000 BUDGET AND ACTUAL Summer Basketball 3,000 ' YEAR ENDED JUNE 30, 1991 Crimestoppers WITH COMPARATIVE TOTALS FOR 1990 t Kodiak Isle Sport Assn. 2,500 2,500 1,500 1991 12,000 12,000 _ 12,000 Village Libraries Variance - 18,000 - 18,000 Chiniak Public Library Favorable 1990 - 3,000 Budget Actual (Unfavorable) 58,000 Actual Education support: Head Start 8,200 8,200 School support - Kodiak College 34,000 34,000 ' Audit expense $ 37,500 $ 23,633 $ 13,867 $ 29,150 Contributions to Kodiak Library Association 1,500 1,500 scholarship foundation - - - 25,000 Capital outlay 20,000 20,000 - - ' Total 57,500 43,633 13,867 54,150 Health and sanitation: ' Total 195,700 190,700 ' Emergency medical services 32,450 26,994 5,456 30,900 Animal control 36,000 35,740 260 37,967 Council on Alcoholism 60,000 60,000 - 60,000 State Health Services Villages 25,800 25,800 - 25,800 ' State Health Services Kana 8,600 8,600 8,600 Women's Resource Crisis 34,900 34,900 _ 34,900 American Red Cross 2,000 2,000 - 2,000 Alaska Legal Services 7,000 7,000 - 10,000 Kodiak Baptist Mission 60,000 60,000 60,000 Small World (Day Care) 18,000 18,000 _ 18,000 Special Olympics 3,000 3,000 - 3,000 Health Center Support 2,000 1,966 34 3,754 ' Senior Citizen Support 24,000 24,000 20,000 Kodiak Respite Care 3,000 3,000 _ 3,000 Detox 50,000 50,000 - - Ambulance service 50,000 50,000 - 50,000 Total 416,750 411,000 5,750 367,921 Culture and recreation: KMXT Public Radio 12,000 12,000 12,000 Historical Society 9,000 9,000 _ 9,000 Summer Basketball 3,000 3,000 - 3,000 Crimestoppers 1,500 1,500 - 1,000 t Kodiak Isle Sport Assn. 2,500 2,500 1,500 Kodiak Art Council 12,000 12,000 _ 12,000 Village Libraries 18,000 18,000 - 18,000 Chiniak Public Library 3,000 3,000 - 3,000 City of Kodiak Library 58,000 58,000 58,000 Head Start 8,200 8,200 _ 8,000 Kodiak College 34,000 34,000 - 34,000 Kodiak Little League 2,000 2,000 - - Kodiak Library Association 1,500 1,500 - ' Santa in the Village 1,000 1,000 _ 1,000 Karluk IRA Council 20,000 20,000 - 20,000 KANA Dorms 10,000 5,000 5,000 - ' Total 195,700 190,700 5,000 180,500 Total expenditures 3,479,120 3,246,431 232,689 3,081,190 49 Continued EXHIBIT A -3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 50 1991 Variance - Favorable 1990 Budget Actual (Unfavorable) Actual Operating transfers out: Special Revenue - Education $2,270,000 $2,100,000 $170,000 $2,100,000 Mental Health 210,000 210,000 - 140,000 Buildings and grounds 460,000 460,000 - 450,000 Capital Projects - Various Borough projects - - - 10,000 Debt Service Other - 325 (325) 9,102 Enterprise Funds - Hospital - - - 13,000 Total operating transfers out 2,940,000 2,770,325 169,675 2,722,102 Total S6,4� 56,016,756 S402.364 S5,8 03,292 50 I SPECIAL REVENUE FUNDS These funds are used to account for revenues from specific taxes or other ear - marked revenue sources which by law are designated to finance particular functions or activities of government. FIRE AND ROAD SERVICE DISTRICTS ' These funds account for the activities related to service districts established by the voters within the district to provide road services and fire protection within the service area. MENTAL HEALTH CENTER This fund accounts for the operations of a mental health center financed by ' State of Alaska grants and contracts and user fees. ENERGY This 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. ' DAY CARE This fund accounts for a State of Alaska grant to finance day care for children of low- income, employed families. EDUCATION ' This fund accounts for the operations of the Kodiak Island Borough School District. The School District is a component unit of the Kodiak Island Borough. LAND SALES This 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 school buildings. ' BUILDING AND GROUNDS This 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. ' LIGHTING DISTRICT This fund accounts for activities related to the Woodland Acres Lighting District established by the voters within the district to provide street ' lighting within the service area. OIL SPILL CLEANUP ' This fund accounts for costs incurred by the Borough due to the oil spill of the Exxon Valdez. Such costs are reimbursed by the State of Alaska and Exxon. KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 52 Fire Koala IlomeWs Monashka District Women's Bay View Area 1 Bay Bay One B_ y Road ASSETS Equity in central treasury S 38,322 $17,432 $5,959 $25,054 526,710 $1,836 Temporary investments 391,891 - - - - - Other cash and cash equivalents - - - - ' Receivables: State of Alaska - - - - ' Federal government - - - - - Land sales contract, due within one year - - Accrued interest 7,112 - - - - - Other - - - - 20,000 - Allowance for doubtful receivables - - - - ' Due from other fads - - - - - - Inventories - - - - - Prepaid expenses - - - - - - Land sales contracts receivable, due after one year - - - - - - Total assets S43� 517.432 55,959 S2� $46,710 51,836 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable S 518 S 151 $2,052 $ 997 S 1,596 $ - Salaries payable - - - - - - Payroll taxes accrued and withheld - - - - - - Employee benefits accrued and withheld 723 - - - - - Customer deposits - 300 - - - - Deferred and unrealized revenues - - - - - - Due to other funds - - - - - Other - - - - ' Total liabilities 1,241 451 2,052 997 1,596 - Fund balance: Reserved for encumbrances - - - - - - Reserved for fuel inventory - - - - - - Health Insurance - - - - - ' Fiscal year 1991 PL -874 - - - - - - Unreserved - Designated: Subsequent year expenditures Undesignated 436,084 16,981 3,907 24,057 45,114 1,836 Total fund balances 436,084 16.981 3,907 24,057 45,114 1,836 Total liabilities and fund balances 5437,325 517,432 $5.959 S25.054 S46,710 51,836 52 EXHIBIT 9-1 t Federal and State Grant Programs Mental Building Woodland Totals Health and Acres Oil Spill Center Energy Day Care Education Land Sales Grounds Lighti Cleanup 1991 1990 S 2,787 S 1,841 S 3,779 S - S 6,895 S 71,514 $1,333 $145,926 S 349,388 S 134,790 - - - 1,300,000 250,000 1,941,891 2,280,886 - - 45,511 - - - - 45,511 38,889 288,197 38,159 50,897 833,880 - - - - 1,211,133 1,387,389 - - - 41,924 - - - - 41,924 61,094 - 195,510 - - - 195,510 245,276 16,746 8,277 - - 32,135 42,913 150,156 - - 4,233 94,455 - - 50,000 318,844 118,747 (31,923) - - - (25,000) - - (56,923) (56,436) - 1,995,115 165,000 75,000 - - 2,235,115 2,444,008 - 173,826 - - - - 173,826 207,387 32,090 - - - - - - - 32,090 427,345 - - 1.729.586 - - 1.729.586 1.368.020 $441,307 S4� $54,676 $3,094,489 $3.483,192 5404,791 $1,333 $195,926 58,250,030 58.700.308 S 9,519 S - S17,497 S 349,770 S 4,200 S 13,735 S 162 S 582 S 400,779 S 513,998 752,624 - - - - 752,624 573,572 14,658 - - 717,590 - - - - 732,248 728,621 - - - 108,548 - - - - 109,271 89,550 300 300 1,925,096 - - 161,539 2,086,635 1,774,837 165,000 40,000 20,000 17,670 - - - 15,000 257,670 413,802 206.538 - - - - 206.538 - 189.177 40.000 37.497 2,152.740 1.929.296 13.735 162 177.121 4.546.065 4.094.680 - 78,965 - - - - 78,%5 47,084 - - 50,345 - - - - 50,345 85,937 - - 200,000 - - - - 200,000 200,000 - - 154,032 - - - - 154,032 207,072 - - - 341,800 341,800 760,000 252,130 - 17.179 116.607 1.553.896 391.056 1.171 18.805 2.878.823 3.305.535 252.130 - 17,179 941.749 1,553.896 391,056 1.171 18,805 3.703. %5 4,605.628 $44 1,307 $4� 0`00 $54.676 $3,094,489 $3,483,192 $404.791 51,333 $1 $8 2 5� $8.7_ 00, 53 Expenditures: KODIAK ISLAND BOROUGH Planning and community SPECIAL REVENUE FUNDS development - COMBINING STATEMENT OF REVENUES. EXPENDITURES. TRANSFERS AND - - - Health and sanitation - CHANGES IN FUND BALANCE (DEFICIT) - - - Education support - - - YEAR ENDED JUNE 30, 1991 General administration 141,745 40,646 - - - - WITH COMPARATIVE TOTALS FOR 1990 - - - - - - Capital outlay: Fire and Road Service Districts - - - Fire - Road - - - Services district maintenance - - 18,408 65,849 53,805 2,486 Women's Monashka District Women's - Total expenditures Area 1 Ba_ Bay One Bay Bay View Revenues: over expenditures 31.551 Property taxes $127,769 $33,377 $21,546 $79,138 S 66,755 $3,826 State sources 7,498 2,446 3,473 12,061 15,760 1,338 Federal sources - - - - - - Land sale proceeds - - - - - - Exxon reimbursement - - - - - - Licenses, permits, fees and other local revenues - - - - 20,000 - Investments and property 38.029 8,400 - - - - Total revenues 173.296 44.223 25.019 91.199 102.515 5,164 Expenditures: Planning and community development - - - - - - Health and sanitation - - - - - - Education support - - - - - - General administration 141,745 40,646 - - - - oil spilt cleanup - - - - - - Capital outlay: - - - - - Capital improvements - - - - - - Services district maintenance - - 18,408 65,849 53,805 2,486 General - - - - Total expenditures 141,745 40.646 18.408 65.849 53.805 2.486 Excess (deficiency) of revenues over expenditures 31.551 3,577 6.611 25.350 48.710 2.678 operating transfers in 10,685 10,000 - - - - Operating transfers out - - - - 1C 0.000 Net operating transfers 10,685 10.000 - - 1( 0.000 - Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out 42,236 13,577 6,611 25,350 38,710 2,678 Fund balance (deficit) at beginning of year 393,848 3,404 (2,704) (1,293) 6,404 (842) Adjustments to reserve for fuel inventory - - - - - Fund balance at end of year $436,084 516.981 5 3 $24.057 S 4�5 X 114 $ 54 EXHIBIT B-2 1 1 1 1 1 1 1 1 1 - 58,100 - - - - 1,662,904 - 193,989 - - - - - - 17,481,451 - - 39,309 630,029 1,662,904 58.100 193.989 17,481.451 39.309 630.029 - 58,100 - 1,856,893 17,481,451 6,152 - 857,881 - 409,989 409,989 140,548 6.152 409,989 20.804,862 21,261.888 36,810 1,808,616 16,452,193 755,152 1,975,506 39,083 194,528 (213.939 - 17.179 1,753.717 814,858 (331,386 1,171 18.805 2.178.882 1,871.883 210,000 - - 2,100,000 - 460,000 - - 2,790,685 2,710,000 (16.561 - - _(4,507.347 (1,301,730 - - - (5,835.638 (3,963.027 193.439 - - (2,407.347 (1.301.730 460.000 - (3.044.953 _(1,253.027 (20,500) - 17,179 (653,630) (486,872) 128,614 1,171 18,805 (866,071) 618,856 272,630 - - 1,630,971 2,040,768 262,442 - - 4,605,628 3,983,787 - (35,592 - - - - (35.592 2.985 S 252,130 S $ 17,179 S 941,749 SS 1,555 S 391,056 S 1 171 S 18.805 S 3,7� 0� S C605,6 55 Federal and State Grant Programs Totals Mental Building Woodland Health and Acres Oil Spill Center Energy Day Care Education Land Sales Grounds Lioti Clean 1991 1990 S - $ - S - S - S - S - S 7,323 S - S 339,734 S 255,761 901,543 58,100 211,168 17,044,417 - - - 428,754 18,686,558 18,716,230 - - - 2,017,334 - - - - 2,017,334 2,343,484 - - - - 581,519 - - - 581,519 370,886 ' - - - - 187,072 541,518 - - 173,417 131,814 - - 40 866,789 519,524 5.904 - - - 140.834 298.643 - - 491.810 740,814 1,448,965 58,100 211.168 19.235,168 854,167 298.643 7,323 428.794 22.983.744 23,133.771 - 58,100 - - - - 1,662,904 - 193,989 - - - - - - 17,481,451 - - 39,309 630,029 1,662,904 58.100 193.989 17,481.451 39.309 630.029 - 58,100 - 1,856,893 17,481,451 6,152 - 857,881 - 409,989 409,989 140,548 6.152 409,989 20.804,862 21,261.888 36,810 1,808,616 16,452,193 755,152 1,975,506 39,083 194,528 (213.939 - 17.179 1,753.717 814,858 (331,386 1,171 18.805 2.178.882 1,871.883 210,000 - - 2,100,000 - 460,000 - - 2,790,685 2,710,000 (16.561 - - _(4,507.347 (1,301,730 - - - (5,835.638 (3,963.027 193.439 - - (2,407.347 (1.301.730 460.000 - (3.044.953 _(1,253.027 (20,500) - 17,179 (653,630) (486,872) 128,614 1,171 18,805 (866,071) 618,856 272,630 - - 1,630,971 2,040,768 262,442 - - 4,605,628 3,983,787 - (35,592 - - - - (35.592 2.985 S 252,130 S $ 17,179 S 941,749 SS 1,555 S 391,056 S 1 171 S 18.805 S 3,7� 0� S C605,6 55 EXHIBIT B -3 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - FIRE AREA 1 STATEMENT OF REVENUES. EXPENDITURES. TRANSFERS. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Revenues: Property taxes Payment in Lieu of Taxes State sources - shared revenue Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures - general administration: Fire chief Volunteers Fringe benefits Professional services Support costs Capital outlay Depreciation Total expenditures Excess of revenues over expenditures Operating transfers in Operating transfers out Net operating transfers Excess of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year 56,340 1991 (3,534) 55,102 7,000 4,400 Variance - 4,415 18,440 17,766 Favorable 1990 Budget Actual (Unfavorable) Actual 43,850 $128,000 $127,769 $ (231) $114,577 - 2,424 2,424 - 8,000 5,074 (2,926) 8,039 6,000 6,005 5 7,545 30.000 32,024 2.024 36,744 172.000 173.296 1.296 166,905 56,340 59,874 (3,534) 55,102 7,000 4,400 2,600 4,415 18,440 17,766 674 14,165 4,000 - 4,000 - 43,850 40,624 3,226 35,004 29,970 19,081 10,889 1,215 12,400 12,400 172,000 141,745 30,255 109,901 31.551 31.551 57,004 10,685 10,685 - (2.067 (2,067 10.685 10.685 42,236 $42,236 393.848 $ 436,084 54,937 338,911 $ 393,848 56 EXHIBIT B -4 KODIAK I SLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - FIRE WOMEN'S BAY STATEMENT OF REVENUES EXPENDITURES TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Excess (deficiency) of revenues over expenditures Operating transfer in Operating transfers out Net operating transfers Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year (10.000 10,000 10.000 3.577 13.577 11.807 10,000 - - - - (20,000 10.000 - (20,000 13,577 $13,577 3.404 $ 16,981 (8,193) 11.597 3,404 57 1991 Variance - Favorable 1990 Budget Actual (Unfavorable) Actual Revenues: Property taxes $ 29,000 $33,377 $ 4,377 $ 31,340 State sources - shared revenue 600 2,446 1,846 618 Licenses, permits, fees and other local revenues 7.200 8.400 1.200 7.700 Total revenues 36.800 44.223 7.423 39,658 Expenditures - general administration: ' Personal services 800 61 739 - Fringe benefits 4,000 3,555 445 2,503 Support costs 27,600 34,909 (7,309) 25,348 Capital outlay 14.400 2.121 12.279 - _ Total expenditures 46.800 40.646 6.154 27.851 Excess (deficiency) of revenues over expenditures Operating transfer in Operating transfers out Net operating transfers Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year (10.000 10,000 10.000 3.577 13.577 11.807 10,000 - - - - (20,000 10.000 - (20,000 13,577 $13,577 3.404 $ 16,981 (8,193) 11.597 3,404 57 EXHIBIT B -5 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD MONASHKA BAY STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE (DEFICIT) - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Revenues: Property taxes State sources - shared revenue Total revenues Expenditures - capital improvements - service district maintenance: Salaries Snow removal Road grading Support -goods & services Total expenditures Excess (deficiency) of revenues over expenditures Fund balance (deficit) at beginning of year Fund balance (deficit) at end of year - 239 (239) 287 12,400 10,474 1,926 24,495 10,000 7,609 2,391 20,920 - 86 (86 122 22.400 18.408 3.992 45.824 6,611 $6,611 (23,370) (2.704 20.666 3,907 $(2,704) 58 1991 Variance - Favorable 1990 Budget Actual (Unfavorable) Actual $18,700 $21,546 $2,846 $18,747 3.700 3.473 (227 3.707 22.400 25.019 2.619 22.454 - 239 (239) 287 12,400 10,474 1,926 24,495 10,000 7,609 2,391 20,920 - 86 (86 122 22.400 18.408 3.992 45.824 6,611 $6,611 (23,370) (2.704 20.666 3,907 $(2,704) 58 1 1 I l KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD DISTRICT 1 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT) - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Revenues: 1991 Variance - Favorable Budget Actual (Unfavorable) Property taxes $63,800 $79,138 $15,338 Payment in lieu of taxes - 1,939 1,939 State sources - shared revenue 9.200 10.122 922 Total revenues 73.000 91.199 18.199 Expenditures - capital improvements - service district maintenance: Salaries 2,400 Repairs and maintenance - Snow removal 54,000 Road grading 8,000 Support -goods & services 8.600 Total expenditures 73.000 Excess (deficiency) of revenues over expenditures Fund balance (deficit) at beginning of year Fund balance (deficit) at end of year 59 2,900 38,917 15,899 8.133 65.849 25,350 (1.293 $ 24,057 (500) 15,083 (7,899) 467 7.151 $ 25,350 EXHIBIT B -6 1990 Actual $50,185 9.222 59.407 5,055 7,787 47,894 2,399 284 63.419 (4,012) 2.719 $( 1,293) EXHIBIT B -11 KODIAK ISLAND BOR SPECIAL FEDERAL AND STATE GRANT PROGRAMS STATEMENT OF REVENUES. CHANGES IN FUND BAI YEAR ENDE1 WITH COMPARAT Revenues: State sources Expenditures - planning and community development: Planning and zoning Excess of revenues over expenditures Fund balance at beginning of year Fund balance at end of year REVENUE FUNDS - COASTAL MANAGEMENT (ENERGY) PROG EXPENDITURES. TRANSFERS AND ANCE - BUDGET AND ACTUAL ) JUNE 30, 1991 IVE TOTALS FOR 1990 1991 Variance - Favorable Budget Actu (Unfavorable) $ 58,100 $58,100 S 58.100 58.100 1990 A ctual $ 11,116 11.116 64 1 1 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH EXHIBIT B -12 SPECIAL REVENUE FUNDS FEDERAL AND STATE GRANT PROGRAMS - DAY CARE STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Revenues - State sources Expenditures - health and sanitation - day care payments Deficiency of revenues over expenditures Fund balance at beginning of year Fund balance at end of year 1991 Variance - Favorable 1990 Budget Actual (Unfavorable) Actual $ 171,262 $211.168 39,906 $181,572 171.262 193.989 (22.727 181.744 $ - 17,179 17,179 (172) 17,179 65 172 EXHIBIT B-13 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS EDUCATION STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 66 1991 Variance - Favorable 1990 Budget Actual (Unfavorable) Actual Revenues: State sources $16,657,410 $17,044,417 f 387,007 $15,789,269 Federal through State sources 2,003,954 1,517,502 (486,452) 1,580,638 Federal direct sources 333,690 499,832 166,142 762,846 Licenses, permits, fees and other local revenues: Food sales 134,100 131,519 (2,581) 126,876 Pupil activities 7,000 7,335 335 6,583 Other local revenues 39.600 34.563 (5,037 60.811 Total revenues 19.175.754 19,235,168 59.414 18.327.023 Expenditures: Education support: Regular instruction 7,747,328 7,469,335 277,993 6,947,004 Vocational education instruction 849 ,082 782,154 66,928 807,313 Correspondence study instruction 108,719 112,503 (3,784) 114,600 Special education instruction 1,958,089 1,758,788 199,301 1,762,426 Gifted and talented instruction 127,035 124,084 2,951 144,248 Bilingual /bicultural instruction 223,250 225,106 (1,856) 204,855 Support services - pupils 939,001 924,449 14,552 838,060 School administration 1,173,762 1,185,472 (11,710) 1,021,437 District administration 965,561 1,141,192 (175,631) 934,405 Operation and maintenance 2,569,653 2,565,720 3,933 2,565,464 Food services 282,100 321,132 (39,032) 268,143 Community services 29,419 16,057 13,362 13,232 Pupil activities 424,866 399,397 25,469 385,948 Pupil transportation 462.235 456.062 6.173 445.058 Total expenditures 17.860,100 17,481,451 378.649 16.452.193 Excess of revenues over expenditures 1,315.654 1,753,717 438.063 1.874.830 Operating transfers in 2,312,393 2,100,000 (212,393) 2,100,000 Operating transfers out (4.637.900 (4,507,347 130.553 (3.623,144 Net operating transfers (2,325.507 (2,407,347 (81.840 (1.523.144 Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out S(1� (653,630) SS 356,223 351,686 Fund balance at beginning of year 1,630,971 1,276,300 Adjustment to reserve for fuel inventory (35,592 2.985 Fund balance at end of year $ 941,749 ff 1,6 66 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS LAND SALES STATEMENT OF REVENUES EXPENDITURES TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ' YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Revenues: State Sources - Grants Land sale proceeds Licenses, permits, fees and other local revenues: Penalty and interest Permit fees Gravel sales Other Investment income Total revenues Expenditures: Professional services Support goods & services Capital Outlay Total expenditures Excess of revenues over expenditures Operating transfers out Excess (deficiency) of revenues over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year EXHIBIT B -14 4.795 50.000 39.309 10.691 64.777 329.200 814.858 485.658 497.917 (1.301.730 (1.301.730 - (313.790 $ (972.530 (486,872) $485,658 184,127 2.040.768 1.856.641 $ 1.553.896 $2.040.768 67 1991 Variance - Favorable 1990 Budget Actual (Unfavorable) Actual $ - $ - $ - $ (21,980) 211,500 581,519 370,019 370,886 200 - (200) 200 - - - 10,000 55,000 131,814 76,814 55,358 - - 100 266,700 713,333 446,633 414,564 112.500 140.834 28.334 148.130 379.200 854.167 474.967 562.694 - 10,979 (10,979) 19,556 50,000 28,330 21,670 40,426 4.795 50.000 39.309 10.691 64.777 329.200 814.858 485.658 497.917 (1.301.730 (1.301.730 - (313.790 $ (972.530 (486,872) $485,658 184,127 2.040.768 1.856.641 $ 1.553.896 $2.040.768 67 EXHIBIT B -15 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS BUILDINGS AND GROUNDS STATEMENT OF REVENUES, EXPENDITURES. TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 68 1991 Variance - Favorable 1990 Budget Actual (Unfavorable) Actual Revenues: Investments and property: Rental $ 265,880 $ 274,025 $ 8,145 $ 277,466 Interest income 7,500 24,058 16,558 15,357 Miscellaneous income 560 560 Total revenues 273.380 298.643 25.263 292.823 Expenditures: General administration: School buildings 403,800 340,973 62,827 315,408 Borough building 252,000 245,312 6,688 248,967 Apartments 32,200 9,429 22,771 18,811 Refuse collection and disposal 15,000 19,858 (4,858) 15,015 Parks operation and maintenance 14.000 14.457 (457 19.199 Total expenditures 717.000 630.029 86.971 617.400 Deficiency of revenues over expenditures (443.620 (331.386 112.234 (324.577 Operating transfers in 460.000 460.000 - 450.000 Excess of revenues and operating transfers in over expenditures $ 16.380 128,614 $112,234 125,423 Fund balance at beginning of year 262.442 137.019 Fund balance at end of year $ 391,056 262,442 68 1 1 1 1 1 1 1 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS WOODLAND ACRES LIGHTING STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 1991 Revenues: Property and taxes State sources - shared revenue Total revenues Expenditures: Electricity Capital outlay Total expenditures Excess of revenues over expenditures Fund balance at beginning of year Fund balance at end of year 69 EXHIBIT B -16 Variance - Favorable Budget Actual (Unfavorable) $7,380 $7,323 $ (57) 7.380 7.323 (57 3,000 4.380 7.380 1,772 4.380 6.152 1,171 1,228 $ 1,171 1.228 $ 1,171 EXHIBIT B-17 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS OIL SPILL CLEANUP STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PROJECT TO DATE JUNE 30, 1991 70 Project Project Project Variance - to date to Date 1991 to Date Favorable Budget 1990 Actual 1991 (Unfavorable) Revenues: Exxon Reimbursements $2,000,000 (1,200,151 S - (1,200,151 t (799,849) State sources Department of Environmental Conservation Grants 2,560,000 1,843,030 428,754 2,271,784 (288,216) Department of Community and Regional Affairs grants 13,600 13,600 - 13,600 - Other sources - 2,630 40 2,670 2,670 Total revenges 4,573,600 3,059,411 428,794 3,488,205 (1,085,395 Expenditures: Personal services 555,170 451,431 81,106 532,537 22,633 Fringe benefits 9,330 59,276 9,749 69,025 (59,695) Support goods and services 2,062,600 1,439,360 111,898 1,551,258 511,342 Capital outlay - 29,313 1,060 30,373 (30,373) Legal fees 10,000 102,068 67,738 169,806 (159,806) Disbursements to villages 1,936,500 977,963 138,438 1,116,401 820,099 Total expenditures 4,573,600 3,059,411 409,989 3,469,400 1,104,200 Excess of revenues over expenditures S - - 18,805 18,805 S Fund balance at beginning year - - Fund balance at end of year S - SS 18,805 S 18,805 70 DEBT SERVICE FUND These funds were established to finance and account for the payment of interest and principal on all general obligation debt, serial and term, other than that payable exclusively from special assessments and revenue debt issued for and serviced by a governmental enterprise. Formerly called a Sinking Fund. SCHOOL BONDS DEBT SERVICE FUND This fund accounts for the accumulation of money for payment of principal, interest and fiscal agent fees related to serial bond debt incurred by the Borough to construct schools. OTHER DEBT SERVICE FUND This fund accounts for the accumulation of money to pay the long -term portion of the Borough's vested accrued annual leave. EXHIBIT C -1 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS COMBINING BALANCE SHEET JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Totals School Bonds Other 1991 1990 ASSETS Cash and investments: Equity in central treasury $ 340,998 $167,878 $ 508,876 $ 151,675 Temporary cash investments 6,508,945 - 6,508,945 6,846,042 Cash with fiscal agent 110,285 - 110,285 397,585 Receivable from State of Alaska 239,782 - 239,782 168,270 Accrued interest receivable 114,751 - 114,751 91,344 S7,314.761 S167,878 S7,482.639 S7,6 LIABILITIES AND FUND BALANCES Accounts payable $ 7,031 $ - $ 7,031 $ 1,260 Due to other funds - - - 818,236 7,031 - 7,031 819,496 Fund Balances Unreserved - Designated for subsequent year expenditures 7,307,730 167,878 7,475,608 6,835,420 Fund balances S7,314,761 S167,878 S7,4� S7,654,916 72 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Revenues: Investments and property - Interest income Gain on exchange Miscellaneous Total revenues Expenditures - debt service: Principal Interest Fiscal agent fees Other Total expenditures Deficiency of revenues over expenditures Operating transfers in: General Fund Special Revenue Funds: Mental Health Center Education Fire Service District Area 1 Total operating transfers in Operating transfers out: Special Revenue Fund: Fire Service District Area 1 Capital Projects Funds Total operating transfers out Net operating transfers Excess of revenues and operating transfers in over expenditures and operating transfers out Fund balances at beginning of year Fund balances at end of year EXHIBIT C -2 73 Totals School Bonds Other 1991 1990 S 472,101 S - S 472,101 S 455,201 - - - 33,246 - - 2.321 472.101 - 472,101 490.768 1,595,833 - 1,595,833 2,260,839 947,381 - 947,381 909,334 71,974 - 71,974 54,086 46 - 46 15.163 2,615,234 - 2,615.234 3.239.416 (2.143.133 - (2,143,133 (2.748,648 - 326 326 9,102 - 16,562 16,562 4,026 4,507,348 - 4,507,348 3,623,144 2.067 4.507.348 16,888 4,524,236 3,638.339 - 685 685 - 1.740,230 - 1.740.230 - 1.740,230 685 1.740.915 - 2.767,118 16.203 2,783.321 3.638.339 623,985 16,203 640,188 889,691 6.683,745 151.675 6,835.420 5.945.729 S 7,307,730 $167,878 SS 7� S 6,835 420 73 EXHIBIT C -3 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS SCHOOL BONDS STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Revenues: Investments and property - Interest income Gain on exchange Miscellaneous Total revenues Expenditures: Debt service - Principal Interest Fiscal agent fees Other Contingencies Total expenditures Deficiency of revenues over expenditures Operating transfers in Operating transfers out Net operating transfers Excess (deficiency) of revenues and operating transfers in over expendi- tures and operating transfers out Fund balance at beginning of year Fund balance at end of year 1991 variance - Favorable 1990 Budaet Actual (Unfavorable) Actual $ 375,000 $ 472,101 $ 97,101 $ 455,201 - - - 33,246 2,321 375,000 472,101 97,101 490,768 1,595,840 1,595,833 7 2,260,833 1,093,000 947,381 145,619 909,334 100,000 71,974 28,026 54,086 - 46 (46) 15,163 211,160 - 211,160 3,000,000 2,615,234 384,766 3,239,416 (2,625,000 (2,143,133 481,867 (2,748,648 3,840,000 4,507,348 667,348 3,623,144 (1,740,230 (1,740,230 - - 2,099,770 2,767,118 667,348 3,623,144 S (525,230 623,985 S1,1 6,683,745 S 7,307,730 874,496 5,809,249 S 6,683,745 74 75 EXHIBIT C -4 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS OTHER STATEMENT OF REVENUES EXPENDITURES TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 1991 Variance - Favorable 1990 Budaet Actual (Unfavorable) Actual Operating transfers in: General fund $ 8,000 $ 326 $(7,674) $ 9,102 Special revenue funds: Mental Health Center 6,000 16,562 10,562 4,026 Fire Service District Area 1 1,000 - (1,000 2,067 Total operating transfers in 15,000 16,888 1,888 15,195 Operating transfers out: Special revenues funds: Fire Service District Area 1 - 685 (685 - Total operating transfers out - 685 (685 - Net operating transfers S15,000 16,203 S 1,203 15,195 Fund balance at the beginning of year 151,675 136,480 Fund balance at the end of year S167,878 S151,675 75 CAPITAL PROJECTS FUNDS This fund was created to account for all resources used for the acquisition of designated fixed assets by a governmental unit except those financed by special assessment and enterprise funds. VARIOUS BOROUGH PROJECTS This fund accounts for a variety of capital projects not accounted for in another fund, including projects financed by the State of Alaska Municipal Aid Program. SCHOOL BOND IMPROVEMENTS This fund accounts for the proceeds of the Borough general obligation bonds issued for the construction of schools. SCHOOL EQUIPMENT AND FURNISHINGS This fund accounts for money transferred to the Kodiak Island Borough School District from other Capital Projects Funds for the acquisition of school equipment and furnishings. STATE CAPITAL GRANTS This fund accounts for capital grant monies received from the State of Alaska for the construction of various projects. SCHOOL MAJOR MAINTENANCE This fund accounts for money transferred from the Land Sales Fund for the major repairs and maintenance of school buildings. KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET JUNE 30.1991 WITH COMPARATIVE TOTALS FOR 1990 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $ 26,087 $ - Retainages payable 13,206 - Deferred revenues Total liabilities 39.293 Fund balances: Reserved for encumbrances 657,793 - Unreserved - Designated for subsequent year expenditures 1,426,538 - Undesignated - 412.530 Total fund balances (deficit) 2.084.331 412.530 $2.123.624 $412,530 78 Various Borough School Bond Projects Improvements ASSETS Equity in central treasury $ 1,234 $210,530 Temporary investments 1,959,097 200,000 Receivables: State of Alaska - - Accrued interest 28,293 2,000 Due from other funds 135.000 $2.123.624 S412.530 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $ 26,087 $ - Retainages payable 13,206 - Deferred revenues Total liabilities 39.293 Fund balances: Reserved for encumbrances 657,793 - Unreserved - Designated for subsequent year expenditures 1,426,538 - Undesignated - 412.530 Total fund balances (deficit) 2.084.331 412.530 $2.123.624 $412,530 78 EXHIBIT D -1 School Equipment State School Totals and Capital Major Furnishings Grants Maintenance 1991 1990 $ - $115,338 $ 85,701 $ 412,803 $1,107,488 - 391,463 1,476,317 4,026,877 969,187 - 12,889 - 12,889 89,147 - 7,026 10,049 47,368 16,987 17.670 - - 152.670 1.063.768 $ 17,670 $526,716 $1,5 72,067 $4,6�,607 $3,2 $ 7,161 $ 199 $ - $ 33,447 $ 2,033 - 10,964 - 24,170 2,622 - 542.572 - 542.572 608,266 7.161 553.735 - 600.189 612.921 - 51,650 - 709,443 94,028 - - - 1,426,538 1,606,510 10.509 (78,669 1.572.067 1.916.437 933.118 10,509 (27.019 1,572.067 4,052.418 2.633.656 $ 17,670 $526,716 $1,572,067 $4,652 7 $3,246 79 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES (DEFICITS) YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 80 Various Borough School Bond Projects Improvements Revenues: State sources $ - $ - Licenses, permits, fees and other local revenues 5,072 - Investments and property 129,401 13,301 Insurance proceeds 10,612 - Asbestos settlement 216,710 - Total revenues 361,795 13,301 Expenditures: Capital improvements: Schools 974,473 2,180 General 873,059 - Total expenditures 1,847,532 2,180 Excess (deficiency) of revenues over expenditures (1,485,737 11,121 Other financing sources (uses): Demand bond principal payments - - Operating transfers in 2,368,730 400,000 Operating transfers out (440,000 (100,000 Net other financing sources 1,928,730 300,000 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 442,993 311,121 Fund balances (deficit) at beginning of year 1,641,338 101,409 Fund balances (deficit) at end of year $ 2,084,331 $ 41_ 80 EXHIBIT D -2 School Equipment State School Totals and Capital Major Furnishines Grants Maintenance 1991 1990 $ - $ 266,774 $ - $ 266,774 $ 663,230 20,000 - - 25,072 - - 7,026 86,880 236,608 281,377 - - - 10,612 - - - - 216,710 8,316 20,000 273,800 86,880 755,776 952,923 27,188 34,715 - 1,038,556 707,827 - 294,129 - 1,167,188 208,829 27,188 328,844 - 2,205,744 916,656 (7,188 (55,044 86,880 (1,449,968 36,267 - - - - 550,000 - 340,000 500,000 3,608,730 1,015,500 - - (200,000 (740,000 (820,500 - 340,000 300,000 2,868,730 745,000 (7,188) 284,956 386,880 1,418,762 781,267 17,697 _(311,975 1,185,187 2,633,656 1,852,389 10,509 (27,019) $1,5i2.067 $ 4,052,418 $2,6�3.656 81 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS YEAR ENDED JUNE 30, 1991 AwroDriations 82 Total Proiect Status Prior 1991 Awrooriations Capital Projects - Education 410 -404 Work of Art - Auditorium Open S 33,090 i - S 33,090 410 -405 Roof, East Elementary Complete 400,000 - 400,000 410 -408 Painting, Akhiok School Complete 25,500 (7,500) 18,000 410 -409 Painting, Chiniak School Complete 20,000 (3,096) 16,904 410 -410 Painting, Karluk School Complete 25,000 (6,954) 18,046 410 -415 Asbestos Removal Program Open 75,000 - 75,000 410 -416 Kodiak High School Lockers Complete 105,000 - 105,000 410 -417 School Pedestrian Project Open - 92,000 92,000 410 -421 School Site Acquisition open 400,000 - 400,000 410 -422 School Improvements - Various Complete 20,000 (15,232) 4,768 410 -431 East Elementary Repair Open - 50,000 50,000 410 -432 East Elementary Lighting Open - 30,000 30,000 410-433 East Elementary Storm Drain Open - 20,000 20,000 410 -434 Junior High Steps Repair Open - 12,000 12,000 410-435 Main Sidewalk Repair open - 15,000 15,000 410 -436 Ouzinkie Roof Repair Open - 65,000 65,000 410 -437 Port Lions Shop Porch Open - 30,000 30,000 410 -438 Port Lions Paint open - 25,000 25,000 410 -441 Old Harbor School Repair open - 525,000 525,000 410 -442 High School Alterations Open - 475,000 475,000 420 -501 Peterson Elementary open 509,860 - 509,860 420 -502 Old Harbor School Fencing Open 20,000 - 20,000 420-503 Landscaping - Port Lions Open 15,000 - 15,000 430 -603 School Pedestrian Project Complete 34,701 34.701 Total Education 1,683.151 1.306,218 2.989,369 Capital Projects - Health 410-401 KIB (KAMA) Apartments Complete 18,000 (4,232) 13,768 410-402 Hospital Construction Open 123,810 - 123,810 410 -403 Exterior Painting Apartments Complete - 33,874 33,874 410 -420 Cat Scan Installation Complete - 135,000 135,000 410 -428 Hospital Oil Spill Open - 100,000 100,000 430 -605 Hospital Design & Development Open 1,000.000 1,000.000 Total Health 1.141.810 264,642 1.406,452 Capital Projects - Roads 410 -412 Rezanof Overlay Open - 295,000 295,000 410 -418 Chiniak Subdivision Open 389,770 - 389,770 430 -601 Lakeside Improvement Open 2,584,840 (1,801,250) 783,590 430 -602 Sharatin Road open 715.300 76.020 791,320 Total Roads 3.689,910 (1,430,230) 2,259,680 Capital Projects - Other 410 -406 Smokey's Clean Up open 42,000 - 42,000 410 -411 Lilly Lake Landscaping Complete - 7,780 7,780 410 -413 ouzinkie Breakwater Complete - 12,000 12,000 410 -414 Fish Meal Program Complete - 35,000 35,000 410 -419 King Crab - RFP open 56,000 - 56,000 410 -423 Drainage Plan Air Photos Open 25,000 6,050 31,050 410 -424 Water & Sewer, Women's Bay Open 100,000 - 100,000 410 -425 Dumpster Pads Open 44,500 - 44,500 410-426 Parks Expansion Open 40,000 - 40,000 410 -427 New Computer Acquisition Open - 540,500 540,500 410 -429 New Parks Open - 40,000 40,000 410 -430 Smokey's Fence open - 50,000 50,000 410 -439 Borough Offices Paint Open - 15,000 15,000 410-440 Borough Buildings Paint Open - 60,000 60,000 430 -604 Water & Sewer, Moneshka Bay Open 100,000 - 100,000 430-606 Ouzinkie Breakwater Open - 18,000 18,000 430 -615 LEPC Grant Open - 9.300 9.300 Total Other 407.500 793.630 1,201,130 Total Capital Projects $6,922 371 L 34 60 $7,8 82 EXHIBIT D -3 83 Expenditures Total Unexpended Current Unencumbered Prior 1991 Expenditures Balance Encumbrances Balance S - S 4,500 S 4,500 S 28,590 S - S 28,590 455 385,797 386,252 13,748 - 13,748 867 17,133 18,000 - - - 462 16,442 16,904 832 25,952 17,214 16,437 18,046 42,389 32,611 - _ 32,611 5,343 96,626 101,969 3,031 - 3,031 - 91,566 91,566 434 2,788 (2,354) 1,290 219,391 220,681 179,319 - 179,319 3,888 - 880 - 4,768 - - 50,000 - - 50,000 - 1,200 1,200 28,800 1,200 27,600 _ - - 20,000 - 20,000 _ - - 12,000 - 12,000 _ - - 15,000 - 15,000 - 1,102 1,102 63,898 2,999 60,899 _ 702 702 29,298 2,689 26,609 - 153 153 24,847 - 24,847 - 51,720 51,720 473,280 262,395 210,885 - 50,577 50,577 424,423 365,481 58,942 26,404 1,460 27,864 481,996 - 481,996 - 719 719 19,281 - 19,281 872 - 872 14,128 - 14,128 836 33.879 34,715 (14 - (14 67,201 1,007.498 1,074,699 1.914,670 637.552 1,277.118 13,300 468 13,768 - - _ - - 123,810 - 123,810 - 33,874 33,874 - - - 135,792 135,792 (792) - (792) - 73,364 73,364 26,636 - 26,636 918,702 21.863 940.565 59.435 50.800 8.635 932.002 265.361 1,197,363 209.089 50.800 158.289 _ - - 295,000 - 295,000 236,917 7,215 244,132 145,638 - 145,638 435,840 82,947 518,787 264,803 - 264,803 12.072 15,719 27.791 763.529 - 763.529 684,829 105.881 790.710 1,468.970 1.468.970 28,179 - 28,179 13,821 - 13,821 - 7,780 7,780 " - 3,000 3,000 9,000 - 9,000 35,000 35,000 - ' 21,572 28,214 49,786 6,214 16,801 (10,587) 20,412 20,412 10,638 - 10,638 2,520 98,902 101,422 (1,422) - (1,422) 3,068 7,050 10,118 34,382 - 34,382 1,517 27,706 29,223 10,777 330 10,447 - 522,463 522,463 18,037 2,763 15,274 • 1,022 1,022 38,978 347 38,631 _ - - 50,000 - 50,000 . 77 77 14,923 - 14,923 - T7 77 59,923 - 59,923 2,351 107,559 109,910 (9,910) - (9,910) - 18,000 18,000 - - - 2.544 2.544 6 ,75 6 850 5.906 59,207 879.806 939.013 262.117 21,091 241,026 $1 743 239 52,25 8,546 $4,001,785 $3,854,846 $709, "3 $3,1 45 .403 83 ENTERPRISE FUNDS ' These funds were established to finance and account for the acquisition, operation and maintenance of governmental facilities and services which are entirely or ' predominantly self- supporting by user charges. SANITARY SERVICES FUND ' This fund accounts for all activity of the Borough owned sanitary landfill and garbage collection utility. WATER ENTERPRISE FUND This fund accounts for all activity of the Borough owned and operated water utility. SEWER ENTERPRISE FUND This fund accounts for all activity of the Borough owned and operated sewer utility. HOSPITAL ENTERPRISE FUND This fund accounts for all activity of the Kodiak Island Hospital & Care Center. The Hospital is a component unit of the Kodiak Island Borough. The Hospital is operated on behalf of the Borough by the Lutheran Health Systems Management Company. KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING BALANCE SHEET JUNE 30, 1991 (DECEMBER 31, 1990 FOR HOSPITAL) WITH COMPARATIVE TOTALS FOR JUNE 30, 1990 (DECEMBER 31, 1989 FOR HOSPITAL) J i 86 ' ASSETS , Totals Sanitary Water Sewer Services Utility Utility Hospital 1991 1990 Current assets: Equity in central treasury S 91,585 S 57,635 S 65,106 S - S 214,326 S 364,879 Temporary investments - 250,000 - - 250,000 - Other cash and cash equivalents - - - 1,099,788 1,099,788 2,370,163 91,585 307,635 65,106 99 1,0,788 1,564,114 2,735,042 Receivables: Customers and patients 19,360 20,761 52,981 2,439,651 2,532,753 1,731,974 City of Kodiak - - - - - 48,394 Third party patient payors - - - 47,644 47,644 25,000 ' Other - 8,277 - - 8,277 - 19,360 29,038 52,981 2,487,295 2,588,674 1,805,368 Less allowance for doubtful receivables - (6,902 (19,663 (706,000 (732,565 (376,564 Net receivables 19,360 22,136 33,318 1,781,295 1,856,109 1,428,804 Prepaid expenses - - - 28,206 28,206 14,455 ' Inventories - - - 190,918 190,918 213,502 Total current assets 110,945 329,771 98,424 3,100,207 3,639,347 4,391,803 Assets whose use is limited: ' By Borough - - - 658,377 658,377 767,567 Under malpractice funding arrangement -held by trustee - - - 257,990 257,990 - By donor for purchase of equipment - - - 73,376 73,376 Equity in central treasury - 16,973 16,973 - 33,946 20,160 Temporary investments - 250,000 250,000 - 500,000 481,556 Interest receivable - 8,278 8,278 - 16,556 15,794 Total restricted assets - 275,251 275,251 989,743 1,540,245 1,285,077 Deposit on capital lease - - - 67,976 67,976 - Fixed assets: Unclassified utility plant ' in service 2,332,173 5,671,796 9,870,603 - 17,874,572 17,874,572 Hospital building and fixed equipment - - - 4,219,590 4,219,590 4,155,302 Major moveable equipment 243,970 - - 1,832,104 2,076,074 1,854,628 , Land - - - 40,276 40,276 38,551 2,576,143 5,671,796 9,870,603 6,091,970 24,210,512 23,923,053 Less accumulated depreciation (282,482 (755,441 (1,093,935 (2,716,024 (4,847,882 (4,132,709 ' 2,293,661 4,916,355 8,776,668 3,375,946 19,362,630 19,790,344 Construction work in progress - 16,196 16,199 - 32,395 31,410 Net fixed assets 2,293,661 4,932,551 8,792,867 3,375,946 19,395,025 19,821,754 ' $2,4 $5,537,573 S 9,166,542 SS 7,5� $24,642,593 $25,498,634 J i 86 ' KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING BALANCE SHEET JUNE 30 1991 (DECEMBER 31, 1990 FOR HOSPITAL) WITH COMPARATIVE TOTALS FOR JUNE 30 1990 (DECEMBER 31, 1989 FOR HOSP Current Liabilities: Accounts payable Customer deposits Accrued compensation Other accrued liabilities Current portion of capital Lease obligation Capital lease obligation Total liabilities Fund equities: Contributions in aid of construction: City of Kodiak State of Alaska Federal Government Kodiak Island Borough Accumulated amortization Net contributions in aid of construction Retained earnings: Urdes i gnated Total fund equities I I L EXHIBIT E-1 LIABILITIES AND FUND EQUITIES Totals Sanitary Water Sewer Services Utility Utility Hospital 1991 1990 S 82,270 S 87,157 S 20 S 219,954 S 410,366 S 340,198 700 33,484 9.145,557 6,167,879 34,184 14,441 9,992 - - 276,421 286,413 346,176 - - - 730,464 730,464 21,613 - - - 24,922 24,922 92,962 120,641 20,985 1,251,761 1,486,349 722,428 - - - 114,232 114,232 92,962 120,641 20,985 1,365,993 1,600,581 722,428 - 189,166 40,000 - 229,166 229,166 2,412,453 5,482,630 9,630,603 - 17,525,666 17,525,666 - - 200,000 2,237,104 2,437,104 2,437,104 1,451.544 1,451,544 1,451,544 2,412,453 5,671,796 9,870,603 3,688 21,643,500 21,643,500 (278,010 (755,401 (1,093,817 - (2,127,228 (1,744,189 2,134,443 4,916,395 8,776,786 3,688,648 19,516,272 19,899,311 177,201 500,537 368,771 2,479,231 3,525,740 4,876,895 2,311,644 5,416,932 9.145,557 6,167,879 23,042,012 24,776,206 $2S2 404,606 55,537,573 S 9,166 542 $7,533,872 524 593 $25498,634 87 EXHIBIT E-2 KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES. EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30. 1991 (DECEMBER 31. 1990 FOR HOSPITAL) WITH COMPARATIVE TOTALS FOR 1990 (1989 FOR HOSPITAL) Total revenues Operating expenses: Personnel services Waste collection Purchased water and sewer treatment Contracted services Repairs and maintenance Depreciation Installation costs Professional care of patients Dietary Plant operations and household General administrative Other Total operating expenses Operating loss Other income: Interest income (expense) Other, primarily State of Alaska revenue sharing Loss on disposal of equipment Donor restricted gifts 1.474.319 225.240 267.984 6.557,481 8.525.024 Totals , Sanitary Water Sewer 17,351 - 334,234 221,966 Services Utility Utility Hospital 1991 1990 Revenues: 167,002 188,194 - 355,196 297,243 8,170 Water sales f - f 208,129 f - f - f 208,129 f 191,450 Sewer service charges - - 265,031 - 265,031 234,935 Refuse collection 1 - - - 1,199,782 945,714 Sanitary services user fees 265,624 - - - 265,624 227,933 Patient revenues - - - 6,420,280 6,420,280 5,945,858 Installation charges - 6,335 30 - 6,365 7,117 Other 8,913 10.776 2.923 137.201 159.813 139.302 Total revenues Operating expenses: Personnel services Waste collection Purchased water and sewer treatment Contracted services Repairs and maintenance Depreciation Installation costs Professional care of patients Dietary Plant operations and household General administrative Other Total operating expenses Operating loss Other income: Interest income (expense) Other, primarily State of Alaska revenue sharing Loss on disposal of equipment Donor restricted gifts 1.474.319 225.240 267.984 6.557,481 8.525.024 7,692.309 , Increase (decrease) in retained 294,916 21,967 17,351 - 334,234 221,966 1,005,841 - - - 1,005,841 887,439 - 167,002 188,194 - 355,196 297,243 8,170 7,593 - - 15,763 23,465 43,036 32,312 21,730 - 97,078 54,152 77,923 109,653 196,612 339,388 723,576 696,787 - 67,680 - - 67,680 - - - - 3,374,139 3,374,139 3,379,435 - - - 458,360 458,360 - - - - 718,356 718,356 618,580 99,401 1,999 - 2,773,870 2,875,270 2,592,648 - 400 21.098 669.891 691.389 450.020 1.529.287 408.606 444.985 8.334,004 10.716.882 9.221.735 (54.968 (183.366 (177.001 (2,191.858 (1.529.426 (113) 32,398 (113 32,398 Loss before operating transfers (55,081) (150,968) Operating transfers in (out) (10,000 Net loss (65,081) (150,968) 16,862 191,745 240,892 329,737 - 134,460 134,460 93,335 - (938) (938) - - 93.249 93.249 - 16,862 418.516 467,663 423.072 (160,139) (1,358,007) (1,724,195) (1,106,354) (10.000 73.000 (160,139) (1,358,007) (1,734,195) (1,033,354) Amortization of contributions in aid of construction 76,805 109.645 196.590 - 383.040 383.040 , Increase (decrease) in retained earnings 11,724 (41,323) 36,451 (1,358,007) (1,351,155) (650,314) Retained earnings at beginning of year 165.477 541.860 332,320 3.837,238 4.876.895 5.527.209 Retained earnings at end of year f 177,201 S 500.537 f 368.771 f 2.47 f 3,525.740 $4.876.895 88 1 KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1991 (DECEMBER 31, 1990 FOR HOSPITAL) WITH COMPARATIVE TOTALS FOR 1990 (1989 FOR HOSPITAL) EXHIBIT E-3 Totals Sanitary Water Sewer Services Utility Utility Hospital 1991 1990 operating loss S (54,968 5(183,366 S077,001 51.776.523 5(2.191.858 1(1.529,426 Adjustments to reconcile operating 339,388 loss to net cash provided by operating 696,787 activities: 356,000 Depreciation 77,923 109,653 Change in provision for uncollectible accounts - - Changes in assets and liabilities: 383,911 Accounts receivable - 48,394 Customers and patients (10,861) (7,359) City of Kodiak (47,644) Third party patient payors - - Prepaid expenses (13,751) Inventories at cost - - Accounts payable 44,816 75,479 Due to other funds - Customer deposits 700 19,043 Accrued compensation 7,014 - Other accrued liabilities - Total adjustments 119,592 196,816 Net cash provided by (used for) - operating activities 64,624 13,450 Cash flows from noncapital financing activities: (66,777) State of Alaska, Revenue Sharing payments (966) received - - Operating transfers (out to) in from other funds 1( 0,000 - Net cash provided by (used for) 5 09,490 noncapital financing activities 1( 0,000 - Cash flows from capital and related financing activities: Acquisition and construction of capital assets - (506) Net repayments on interfund capital - related expenditures - - Receipt of gifts restricted by donor for capital purchases - - Proceeds from sale of equipment - - Principal payments made on capital Lease - - Deposit made on capital lease - - Net cash used for capital and 196,612 339,388 723,576 696,787 - 356,000 356,000 (82,718) (13,490) (777,346) (809,056) 383,911 - 48,394 48,394 103,749 - (47,644) (47,644) (21,394) - (13,751) (13,751) 86,244 - 22,584 22,584 (22,619) 10,081 (60,209) 70,167 211,351 - - - (10,525) - - 19,743 2,786 - (66,777) (59,763) (966) - 708,851 708,851 638 193.203 5 09,490 1,019,101 1,347,244 16,202 (1,267,033 (1,172,757 (182,182 159,460 159,460 109,460 (10,000 73,000 - 159,460 149,460 182,460 (477) (145,159) (146,142) (274,423) (6,055) 93,249 93,249 11,616 - - 35,187 (12,485) (12,485) (67,976 (67,976 related financing activities - (506 (477 (132,371 (133,354 (233.675 Cash flows from investing activities: 109,190 109,190 Change in assets whose use is limited: - (257,990) By Borough - - Under malpractice funding arrangement - - By donor for specific purpose 191,745 - interest and dividends paid on investments (113 32,017 Net cash provided by investing 194,350 32,205 activities (113 32.017 Net change in cash and cash 2,370,163 3,236,758 equivalents 54,511 44,961 Cash and cash equivalents at beginning of year 37,074 529,647 Cash and cash equivalents at end of year S 985 S 574,608 - 109,190 109,190 (128,909) - (257,990) (257,990) - - (73,376) (73,376) - 16,480 191,745 240,129 323,259 16,480 (30,431 17,953 194,350 32,205 (1,270,375) (1,138,698) (39,047) 299,874 2,370,163 3,236,758 3,275,805 S 332,079 55 1� SS 2 ,098,060 S 3,236,758 89 EXHIBIT E -4 KODIAK ISLAND BOROUGH SANITARY SERVICES ENTERPRISE FUND BALANCE SHEET JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 ASSETS 1991 1990 Current assets: Equity in central treasury $ 91,585 $ 37,074 Customer receivables 19.360 8.499 Total current assets 110.945 45.573 Fixed assets: Unclassified plant in service 2,332,173 2,332,173 Major movable equipment 243.970 243.970 2,576,143 2,576,143 Less accumulated depreciation (282.482 (204.559 Net fixed assets 2.293.661 2.371.584 $2,4�606 $2.4 -_ LIABILITIES AND FUND EQUITY Liabilities: Current liabilities: Accounts payable $ 82 $ 37,454 Customer deposits 700 - Accrued compensation 9.992 2.978 Total current liabilities 92.962 40.432 Fund equity: Contributions in aid of construction: State of Alaska 2,412,453 2,412,453 Accumulated amortization _(278.010 (201.205 Net contributions in aid of construction 2,134,443 2,211,248 Retaiued earnings, undesignated 177.201 165.477 Total fund equity 2.311.644 2.376.725 $2,4� 0� $2.4 90 EXHIBIT E -5 KODIAK ISLAND BOROUGH SANITARY SERVICES ENTERPRISE FUND STATEMENT OF REVENUES EXPENSES TRANSFERS AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Revenues: Refuse collection Sanitary services user fees Other Total revenues Operating expenses: Waste collection Waste disposal: Personal services Contracted services Support -goods and services Recycling effort Repairs and maintenance Depreciation Total operating expenses Operating Loss Other expense Interest expense Loss before operating transfers Operating transfer out Net loss Amortization of contributions in aid of construction Increase in retained earnings Retained earnings at beginning of year Retained earnings at end of year 936,000 1,005,841 (69,841) 265,820 1991 (29,096) 31,000 8,170 22,830 Variance - 79,655 (7,405) 30,000 Favorable 1990 Budget Actual (Unfavorable) Actual 77,923 $1,120,000 $1,199,782 $ 79,782 $ 945,714 250,370 265,624 15,254 227,933 6,000 8,913 2,913 7,468 1,376,370 1,474.319 97,949 1,181,115 936,000 1,005,841 (69,841) 265,820 294 (29,096) 31,000 8,170 22,830 72,250 79,655 (7,405) 30,000 19,746 10,254 27,000 43,036 (16,036) 14,300 77,923 (63,623 1,376,370 1,529,287 (152,917 - (54,968) (54,968) 887,439 176,863 23,465 80,647 1,546 28,463 77,923 1,276,346 (95,231) 113 (113 (55,081) (10,000 (65,081) (55,081) (10,000 $( 65,081) (95,231) 60,000 (35,231) 76,805 11,724 165,477 $ 1_ 7_,201 76,805 41,574 123,903 $ 1- 91 EXHIBIT E -6 KODIAK ISLAND BOROUGH SANITARY SERVICES ENTERPRISE FUND STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Operating loss Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation Changes in assets and liabilities: Receivable from customers Accounts payable Customer deposits Accrued compensation Total adjustments Net cash provided by (used for) operating activities Cash flows from noncapital financing activities: Operating transfers in from (out to) other funds Net cash provided by (used for) noncapital financing activities Cash flows from investing activities: Interest and dividends paid on investments Net cash 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 1991 1990 $( 54,968) $(95,231) 77,923 77,923 (10,861) 3,102 44,816 (28,374) 700 - 7.014 (2.979 119.592 49.672 64.624 (45.559 (10.000 _ 60.000 (10,000 60.000 (113 - (113 - 54,511 14,441 37.074 22.633 91,585 37,074 92 EXHIBIT E -7 KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND BALANCE SHEET JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 ASSETS Current assets: Equity in central treasury Temporary investments Investment interest receivable Customer receivables Less allowance for doubtful receivables Net customer receivables Total current assets Restricted assets: Equity in central treasury Temporary investments Interest receivable Total restricted assets Fixed assets: Unclassified utility plant in service Accumulated depreciation Net utility plant in service Construction work in progress Net fixed assets LIABILITIES AND FUND EQUITY Liabilities: Current liabilities: Payable from current assets: Accounts payable Customer deposits Total liabilities Fund equity: Contributions in aid of construction: City of Kodiak State of Alaska Accumulated amortization Net contributions in aid of construction Retained earnings, undesignated Total fund equity 1991 1990 $ 57,635 $ 278,789 250,000 - 8,277 - 20,761 21,679 (6,902 (6,901 13,859 14,778 329,771 293,567 16,973 10,080 250,000 240,778 8,278 7,897 275,251 258,755 5,671,796 (755,441 4,916,355 16,196 4,932,551 S5,5 5,671,796 (645,789 5,026,007 15,689 5,041,696 S5,594,018 $ 87,157 $ 11,678 33,484 14,441 120,641 26,119 189,166 189,166 5,482,630 5,482,630 5,671,796 5,671,796 (755,401 (645,757 4,916,395 5,026,039 500,537 541,860 5,416,932 5,567,899 55,537,573 S5,5 94 EXHIBIT E -8 KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND STATEMENT OF REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 991 Revenues: Water sales Installation charges Other Total revenues Operating expenses: Personal services Contracted installation Purchased water Repairs and maintenance Depreciation Other: Advertising and hearings Printing and binding Automotive and travel Office supplies and postage Installation costs Small tools Total operating expenses Operating loss Other income: Interest income Net loss Amortization of contributions in aid of construction Increase (decrease) in retained earnings Retained earnings at beginning of year Retained earnings at end of year 1990 Actual $191,450 5,000 4.039 200.489 30,300 21,967 Variance 23,915 - Favorable Budget Actual (Unfavorable) $190,000 $208,129 $ 18,129 5,000 6,335 1,335 1.000 10.776 9.776 196.000 225.240 29.240 1990 Actual $191,450 5,000 4.039 200.489 30,300 21,967 8,333 23,915 - 7,593 (7,593) - 100,000 167,002 (67,002) 157,727 30,000 32,312 (2,312) 3,834 36,100 109,653 (73,553) 109,653 100 173 (73) - 500 310 190 - _ 9 1,500 1,516 (16) 1,151 2,500 67,680 (65,180) - 5.000 400 4.600 - 206.000 408.606 (202.606 296,289 (10.000 (183,366 (173.366 (95,800 5.000 32.398 27.398 32.829 ( 5,000) (150,968) $(14_5,9 (62,971) 109.645 109.645 (41,323) 46,674 541.860 495.186 $ 500,537 $541,860 95 EXHIBIT E -9 KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Operating loss Adjustments to reconcile operating loss to net cash provided by operating_ activities: Depreciation Change in provision for uncollectible accounts Changes in assets and liabilities: Receivable from customers Receivable from State of Alaska Accounts payable Customer deposits Total adjustments Net cash provided by operating activities Cash flows from capital and related financing activities: Acquisition and construction of capital assets Repayments on interfund capital - related expenditures Net cash used for capital and related financing activities Cash flows from investing activities: Interest and dividends paid on investments Net cash provided by investing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 1991 1990 $(183.366 $ (95.800 109,653 109,653 2,260 (7,359) 7,791 75,479 (10,868) 19.043 2.786 196.816 111.622 13.450 15.822 (506) (3,568) (3.028 (506 (6.596 32.017 29.590 32.017 29.590 44,961 38,816 529.647 490.831 $ 574,608 $529,647 96 KODIAK ISLAND BOROUGH SEWER ENTERPRISE FUND BALANCE SHEET JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 ASSETS Current assets: Equity in central treasury Customer receivables Less allowance for doubtful receivables Net customer receivables Total current assets Restricted assets: Equity in central treasury Temporary investments Interest receivable Total restricted assets Fixed assets: Unclassified utility plant in service Accumulated depreciation Net utility plant in service Construction work in progress Net fixed assets LIABILITIES AND FUND EQUITY Liabilities: Current liabilities: Payable from current assets: Accounts payable Total liabilities Fund equity: Contributions in aid of construction: City of Kodiak State of Alaska Federal government Accumulated amortization Net contributions in aid of construction Retained earnings, undesignated Total fund equity 1991 $ 65,106 52,981 (19,663 33,318 98,424 16,973 250,000 8,278 275,251 9,870,603 (1,093,935 8,776,668 16,199 8,792,867 S9,1� 6�6, S 20,985 20,985 40,000 9,630,603 200,000 9,870,603 (1,093,817 8,776,786 368,771 9,145 557 59.1 EXHIBIT E -10 1990 $ 49,016 39,491 (19,663 19,828 68,844 10,080 240,778 7,897 258,755 9,870,603 (897,323 8,973,280 15,721 8,989,001 $9,3 S 10,904 10,904 40,000 9,630,603 200.000 9,870,603 (897,227 8,973,376 332,320 9,305,696 S9,316 97 EXHIBIT E -11 KODIAK ISLAND BOROUGH SEWER ENTERPRISE FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Revenues: Sewer service charges Installation charges Other Total revenues Operating expenses: Personal services Purchased sewer treatment Repairs and maintenance Depreciation Other: Operating supplies Electric Telephone Advertising and hearings Printing and binding Automotive and travel Office supplies and postage Small tools Total operating expenses Operating loss Other income: Interest income Net loss Amortization of contributions in aid of construction Increase in retained earnings Retained earnings at beginning of year Retained earnings at end of year 98 1991 Variance Favorable 1990 Budoet Actual (Unfavorable) Actual $243,940 $ 265,031 $ 21,091 $ 234,935 5,000 30 (4,970) 2,117 700 2,923 2,223 2,009 249,640 267,984 18,344 239,061 27,000 17,351 9,649 21,188 160,000 188,194 (28,194) 139,516 28,500 21,730 6,770 21,855 13,700 196,612 (182,912) 196,612 2,000 347 1,653 578 16,000 19,338 (3,338) 17,432 - 77 (77) - 100 173 (73) - 100 310 (210) - - - - 10 500 853 (353) 457 4,240 - 4,240 - 252,140 444,985 (192,845 397,648 2,500 (177,001 (174,501 _(158,587 - 16,862 16,862 20,273 2,500 (160,139) S 157,639 (138,314) 196,590 196,590 36,451 58,276 332,320 274,044 S 368,771 SS 332,320 98 KODIAK ISLAND BOROUGH SEWER ENTERPRISE FUND STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1991 WITH COMPARATIVE TOTALS FOR 1990 Operating loss Adjustments to reconcile operating lose to net cash provided by operating activities: Depreciation Change in provision for uncollectible accounts Changes in assets and liabilities: Receivable from customers Receivable from State of Alaska Accounts payable Due to other funds Total adjustments Net cash provided by operating activities Cash flows from capital and related financing activities: Acquisition and construction of capital assets Repayments on interfund capital - related expenditures Net cash used for capital and related financing activities Cash flows from investing activities: Interest and dividends paid on investments Net cash provided by investing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 1991 S(177,001 196,612 (13,490) 10,081 193,203 16,202 EXHIBIT E -12 1990 S(158,587 196,612 15,022 12,853 8,664 (10,525 222,626 64,039 (477) (16,363) - (3,027 (477 16,480 16,480 32,205 299,874 (19,390 17,034 17,034 61,683 238,191 SS 33,079 S 299,874 99 EXHIBIT E -13 KODIAK ISLAND BOROUGH HOSPITAL ENTERPRISE FUND BALANCE SHEET DECEMBER 31, 1990 WITH COMPARATIVE TOTALS FOR 1989 ASSETS 40,276 38,551 Building and fixed equipment 1990 1989 Current assets: 1,832,104 1,610,658 Other cash balances S 1,099,788 S 2,370,163 Receivables: (2,716,024 (2,385,038 Patients 2,439,651 1,662,305 City of Kodiak - 48,394 Third party 47,644 25,000 Less allowance for doubtful receivables (706,000 (350,000 Net receivables 1,781,295 1,385,699 Prepaid expenses 28,206 14,455 Inventories, at cost 190,918 213,502 Total current assets 3,100,207 3,983,819 Assets whose use is limited: 730,464 21,613 By Borough 658,377 767,567 Under malpractice funding arrangement -held by trustee 257,990 - By donor for purchase of equipment 73,376 - Fund equities: 989,743 767,567 Deposit on capital lease 67,976 - Fixed assets: Land 40,276 38,551 Building and fixed equipment 4,219,590 4,155,302 Major movable equipment 1,832,104 1,610,658 6,091,970 5,804,511 Less accumulated depreciation (2,716,024 (2,385,038 Net fixed assets 3,375,946 3,419,473 S 7,533,872 S 8,170,859 LIABILITIES AND FUND EQUITY Current liabilities: Current portion - capital lease obligation $ 24,922 $ - Accounts payable 219,954 280,162 Accrued liabilities: Compensation 276,421 343,198 Other 730,464 21,613 Total current liabilities 1,251,761 644,973 Capital lease obligation 114,232 - 1,365,993 644,973 Fund equities: Contributions in aid of construction: Federal government 2,237,104 2,237,104 Kodiak Island Borough 1,451,544 1,451,544 3,688,648 3,688,648 Retained earnings, undesignated 2,479,231 3,837,238 Total fund equity 6,167,879 7,525,886 S 7,533,872 S 8,170,859 100 EXHIBI E -14 KODIAK ISLAND BOROUGH HOSPITAL ENTERPRISE FUND 1 STATEMENT OF REVENUES EXPENSES TRANSFERS AND CHANGES IN FUND EQUITY ' YEAR ENDED DECEMBER 31, 1990 WITH COMPARATIVE TOTALS FOR 1989 ' 1990 1989 Revenues: Patient $ 7,387,138 $ 7,202,789 ' Less allowances for uncollectible accounts (966,858 (1,256,931 Net patient revenues 6,420,280 5,945,858 ' Other 137,201 125,786 Total operating revenues 6,557,481 6,071,644 ' Operating expenses: Depreciation 339,388 312,599 Professional care of patients 3,374,139 3,379,435 Dietary 458,360 432,588 ' Plant operation and household 718,356 618,580 General administrative 2,773,870 2,508,250 Other 669,891 - Total operating expenses 8,334,004 7,251,452 Operating income (loss) (1,776,523) (1,179,808) ' Other income (expense): Interest income 191,745 276,635 State of Alaska, Revenue Sharing 134,460 134,460 Loss on disposal of equipment (938) (41,125) Donor restricted gifts 93,249 11,616 Total other income 418,516 381,586 ' Net lose before operating transfers (1,358,007) (798,222) Operating transfer in - 13,000 ' Net loss (1,358,007) (785,222 Fund equity at beginning of year 7,525,886 8,311,108 Fund equity at end of year 3 6,167,879 $ 7,525,886 1 101 EXHIBIT E -15 KODIAK ISLAND BOROUGH HOSPITAL ENTERPRISE FUND STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 1990 WITH COMPARATIVE TOTALS FOR 1989 Operating loss Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation Change in provision for uncollectible accounts Changes in assets and liabilities: Accounts receivable - Patients City of Kodiak Third party patient payors Prepaid expenses Inventories at cost Accounts payable Accrued compensation Other accrued liabilities Total adjustments Net cash provided by (used for) operating activities Cash flows from noncapital financing activities: State of Alaska, Revenue Sharing payments received Operating transfers in from other funds Net cash provided by noncapital financing activities Cash flows from capital and related financing activities: Acquisition and construction of capital assets Receipt of gifts restricted by donor for capital purchases Proceeds from sale of equipment Principal payments made on capital lease Deposit paid on capital lease Net cash used for capital and related financing activities Cash flows from investing activities: Change in assets whose use is limited: By Borough Under malpractice funding arrangement By donor for purchase of equipment Interest and dividends on investments Net cash provided by investing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 102 1990 1989 S(1,776,523 S(1,179,808 339,388 356,000 312,599 (100,000) (777,346) 48,394 (47,644) (13,751) 22,584 (60,209) (66,777) 708,851 509,490 360,165 103,749 (21,394) 86,244 (22,619) 241,929 2,013 638 963,324 _(1,267,033 (216,484 159,460 109,460 - 13,000 159,460 122,460 (145,159) (254,492) 93,249 11,616 - 35,187 (12,485) - (67,976 - (132,371 (207,689 ' 109,190 (128,909) (257,990) - (73,376) - 191,745 276,635 (30,431 147,726 (1,270,375) (153,987) 2,370,163 2,524,150 ' S 1,099,788 S 2,370,163 AGENCY FUNDS Agency Funds are used to account for assets held by a government as an agent for individuals, private organizations, other governments, and /or other funds. ' STUDENT ACTIVITIES FUND This fund accounts for the operations of the various Kodiak Island Borough School ' District student organizations. DEFERRED COMPENSATION FUND ' This fund accounts for deferred compensation and accumulated earnings thereon for participants in the Borough's Internal Revenue Code Section 457 Deferred Compensation Plan. u EXHIBIT F -1 KODIAK ISLAND BOROUGH AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS. LIABILITIES AND FUND BALANCES YEAR ENDED JUNE 30, 1991 STUDENT ACTIVITIES FUND ASSETS Cash and cash equivalents Other receivables LIABILITIES Accounts payable Due to student organizations DEFERRED COMPENSATION FUND ASSETS Investments (at market value) LIABILITIES Due to participants TOTALS - ALL AGENCY FUNDS ASSETS Cash and cash equivalents Other receivables Investments (at market value) LIABILITIES Accounts payable Due to student organizations Due to participants Balance at Balance at July 1. 1990 Additions Deletions June 30. 1991 $ 97,465 97,465 $ 21,037 79 21,116 $118,502 79 $ 118,581 $ 5,053 $ - $ 3,768 $ 1,285 92.412 24.884 - 117.296 97,465 24,884 3,768 $118,581 $ 622,980 $127,995 40,639 $710,336 $ 622,980 $127,995 S 40.639 $710,336 $ 97,465 $ 21,037 $ - $118,502 - 79 - 79 622.980 127.995 40.639 710.336 $ 720,445 $149,111 40,639 $828,917 $ 5,053 92,412 622.980 $ 720,445 24,884 127.995 $ 152,879 $ 3,768 40.639 44,407 $ 1,285 117,296 710.336 $828.917 104 GENERAL FIXED ASSETS ACCOUNT GROUP This is a self - balancing account group which records fixed assets of the Borough and School District other than those recorded in the Enterprise Funds. EXHIBIT G -1 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE JUNE 30, 1991 General fixed assets: Land Buildings Improvements other than buildings Equipment Construction work in progress Investment in general fixed assets: Capital Projects Funds: General obligation bonds Federal grants State grants General Fund revenues Special Revenue Funds revenues Contribution from State of Alaska $ 7,469,315 64,790,809 842,139 4,134,553 1.493.112 $78.729.928 $47,677,896 575,516 14,113,013 2,950,280 2,936,880 10.476.343 $78.729.928 106 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY JUNE 30, 1991 Total Staff agencies: Borough mayor S 25,925 Borough clerk 36,613 Finance 72 ,E Assessing 24,232 Community development 88,380 Engineering /Facilities 94,314 Data services 563,799 Resource management 10,261 General administration 137,578 Building Inspections - Mental health %,258 Total staff agencies 1,150,044 Public safety: 24,232 Emergency preparedness 194,724 Fire Protection Area 1 711,571 Bell's Flats Fire District 608,819 Total public safety 1,515,114 Schools 59,294,591 School equipment 2,450,634 Teacher housing 125,715 General governmental buildings 4,389,264 Building sites 110,648 Playgrounds 710,239 Other 131,900 Total general fixed assets %.258 allocated to functions 69,878,149 Undeveloped land 7,358.667 77,236,816 Construction work in progress 1,493.112 Total general fixed assets 578,729,928 EXHIBIT G -2 107 Improvements Machinery Other Than and Land Buildings Buildings Eouipment S 25,925 - - - 36,613 - - - 72,684 - - - 24,232 - - - 88,380 - - - 94,314 - - - 563,799 - - - 10,261 - - - 137,578 - - %.258 - - 1.150,044 - 100,000 - 94,724 - 455,584 - 255,987 - 425.655 183,164 - 981,239 533,875 - 59,294,591 - - - - 2,450,634 - 125,715 - - 4,389,264 - 110,648 - - - - - 710,239 - - 131,900 110,648 64,790,809 842,139 4,134,553 7.358.667 - - 7,469,315 64,790,809 842,139 4,134,553 220.681 940.565 331,866 $7, 689,996 565.731,374 5841 54.466,419 107 EXHIBIT G -3 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY JUNE 30, 1991 Staff agencies: Borough mayor Borough clerk Finance Assessing Community development Engineering /Facilities Data services Resource management General administration Building inspections Mental health Total staff agencies Public safety: Emergency preparedness Fire Protection Area 1 Bells Flats Fire District Total public safety Schools School equipment Teacher housing General governmental buildings Building sites Playgrounds Other Total general fixed assets allocated to functions Undeveloped land Construction work in progress Total general fixed assets General Fixed General Fixed Assets at Assets at July 1. 1990 Additions Deductions June 30. 1991 $ 25,925 $ - $ - $ 25,925 35,038 1,575 - 36,613 72,684 - - 72,684 24,232 - - 24,232 56,667 31,713 - 88,380 93,314 1,000 - 94,314 330,572 233,227 - 563,799 8,950 1,311 - 10,261 121,248 16,330 - 137,578 78,193 18.065 - 96.258 846.823 303.221 - 1,150.044 194,724 - - 194,724 692,490 19,081 - 711,571 606.698 2.121 608,819 1.493.912 21,202 - 1.515.114 58,806,370 488,221 - 59,294,591 2,180,600 354,267 (84,233) 2,450,634 125,715 - - 125,715 4,389,264 - - 4,389,264 110,648 - - 110,648 710,239 - - 710,239 131.900 - - 131.900 68,795,471 1,166,911 (84,233 69,878,149 7,358,667 - - 7,358,667 1,819,351 573,120 (899,359 1,493,112 $77,973.489 $1,7� $ (983.592 $78,729.928 108 GENERAL LONG -TERM DEBT ACCOUNT GROUP This is a self - balancing account group which records the Borough's unmatured general long -term debt. This debt is payable from monies presently in the various Debt Service Funds and from future general Borough revenues. The debt is backed by the full faith and credit of the Borough. EXHIBIT H -1 KODIAK ISLAND BOROUGH GENERAL LONG -TERM DEBT ACCOUNT GROUP SCHEDULE OF GENERAL LONG -TERM DEBT JUNE 30, 1991 WITH COMPARATIVE FIGURES FOR 1990 Amount available and to be provided for the payment of general long -term debt: Amount available in Debt Service Funds: School serial bonds Accrued annual leave Amount to be provided: School serial bonds Environmental Protection Agency loan General obligation school bonds: 1986A Improvement 1989 Refunding Environmental Protection Agency loan Accrued annual leave 1991 1990 $ 7,307,730 $ 6,683,745 167.878 151.675 7.475.608 6.835.420 6,427,270 8,626,255 281.248 302.083 6.708.518 8.928.338 $14.184.126 $15.763.758 $ 5,000,000 $ 6,000,000 8.735.000 9.310.000 13.735.000 15.310.000 281,248 302,083 167.878 151.675 449.126 453.758 $14.184.126 $15.763.758 110 SUPPLEMENTAL FINANCIAL DATA BONDED INDEBTEDNESS The following schedules reflect total bonded indebtedness of the Kodiak Island 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 fully defeased. EXHIBIT I -1 KODIAK ISLAND BOROUGH KODIAK, ALASKA SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY JUNE 30, 1991 Annual Principal and Interest Requirements* General Obliaation_ Bonds Calendar Year Principal Interest Total 1991 $1,630,000 $1,009,985 $2,639,985 1992 1,680,000 882,105 2,562,105 1993 1,725,000 757,225 2,482,225 1994 1,780,000 629,103 2,409,103 1995 1,835,000 497,142 2,332,142 1996 1,390,000 366,198 1,756,198 1997 945,000 290,677 1,235,677 1998 1,015,000 225,945 1,240,945 1999 1,080,000 155,010 1,235,010 2000 1.155.000 80.850 1.235.850 $14.235.000 $4.8�,240 $19.129.240 * Does not include issues that have been fully defeased. ** Includes imputed interest of 8% on Variable Rate Demand Bonds, Series 1986A. Note: This schedule (and Table 13a through 13e inclusive) indicate debt service by calendar year; other information in this report relative to debt service is on a fiscal year (July 1 through June 30) basis. 112 KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL OBLIGATION SCHOOL IMPROVEMENT BONDS, SERIES 1986A RETIREMENT SCHEDULE EXHIBIT I-2 This issue, dated June 4, 1986, consisted initially of 198 bands in the amount of $50,000 each, and one bond in the amount of $30,000, totaling $9,930,000. Bonds numbered 1 through 99 in the amount of $3,930,000 have been retired. Bonds numbered 100 through 199 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of ten years. Retirement dates are quarterly beginning on September 1, 1986 and quarterly thereafter. For information on early call of these bonds, please review the ordinance, letter of credit, and prospectus on this issue. This issue was marketed by and is marked to market and indexed weekly by John Nuveen 8 Co, of Chicago. Legal opinion was rendered by bond counsel, Wohlforth 8 Flint of Anchorage. Bonds were issued to renovate and extend various school projects. Bonds are payable at the Metropolitan branch of the Seattle First National Bank, Seattle, Washington. * Interest is at a variable rate; calculation made at 8% of the unpaid principal balance. Refunded August 29, 1991 113 Bond Interest Numbers Principal Maturity Rate* Inclusive Amount Interest Total Sep 1991 Variable 100 -104 S 250,000 S 100,000 S 350,000 Dec 1991 Variable 105 -109 250,000 95,000 345,000 Mar 1992 Variable 110 -114 250,000 90,000 340,000 Jun 1992 Variable 115 -119 250,000 85,000 335,000 Sep 1992 Variable 120 -124 250,000 80,000 330,000 Dec 1992 Variable 125 -129 250,000 75,000 325,000 Mar 1993 Variable 130 -134 250,000 70,000 320,000 Jun 1993 Variable 135 -139 250,000 65,000 315,000 Sep 1993 Variable 140 -144 250,000 60,000 310,000 Dec 1993 Variable 145 -149 250,000 55,000 305,000 Mar 1994 Variable 150 -154 250,000 50,000 300,000 Jun 1994 Variable 155 -159 250,000 45,000 295,000 Sep 1994 Variable 160 -164 250,000 40,000 290,000 Dec 1994 Variable 165 -169 250,000 35,000 285,000 Mar 1995 Variable 170 -174 250,000 30,000 280,000 Jun 1995 Variable 175-179 250,000 25,000 275,000 Sep 1995 Variable 180-184 250,000 20,000 270,000 Dec 1995 Variable 185 -189 250,000 15,000 265,000 Mar 1996 Variable 190-194 250,000 10,000 260,000 Jun 1996 Variable 195 -199 250.000 5.000 255,000 $5.000.000 $1.050.000 $6,050,000 * Interest is at a variable rate; calculation made at 8% of the unpaid principal balance. Refunded August 29, 1991 113 EXHIBIT 1 -3 KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL OBLIGATION SCHOOL REFUNDING BONDS. SERIES 1989 RETIREMENT SCHEDULE This issue, dated May 1, 1989, consists of 2,000 bonds in the amount of $5,000 each, totaling $10,000,000. Bonds numbered 1 through 253 have been retired. Bonds numbered 284 through 2,000 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of 10 years. Retirement date is August 1 of each year beginning in 1989. Bonds maturing in 1997 and after are callable beginning in 1997 and this call privilege may be exercised. This issue was marketed by John Nuveen & Co. of Chicago. Legal opinion was rendered by bond counsel, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage. Bonds were issued to refund the 1980 issue. Bonds are payable at the Security Pacific National Bank (formerly Rainier) Seattle, Washington. * Maturities on and after August 1, 1997 are callable at par on this and any interest date thereafter. 114 Bond Principal Interest Interest Interest Numbers Due Due Due Year Rate Inclusive August 1 February 1 August 1 Total 1991 7.60 254 -379 S 630,000 $ - $ 299,992 $ 929,992 1992 6.60 380- 515 680,000 276,052 276,053 1,232,105 1993 6.65 515-660 725,000 253,613 253,612 1,232,225 1994 6.65 661- 816 780,000 229,506 229,507 1,239,013 1995 6.70 817- 983 835,000 203,571 203,571 1,242,142 1996 6.80 984 -1161 890,000 175,599 175,599 1,241,198 1997* 6.85 1162 - 1350 945,000 145,339 145,338 1,235,677 1998 6.90 1351 -1553 1,015,000 112,972 112,973 1,240,945 1999 6.96 1554 -1769 1,080,000 77,955 77,955 1,235,910 2000 7.00 1770 -2000 1.155,000 40.425 40.425 1.235.850 58.735.000 51.515.032 $1.815.025 $12.0 * Maturities on and after August 1, 1997 are callable at par on this and any interest date thereafter. 114 KODIAK ISLAND BOROUGH KODIAK, ALASKA ASBESTOS REMOVAL LOAN PAYABLE RETIREMENT SCHEDULE EXHIBIT I -4 This debt was incurred June 24, 1985 as part of a package from the U.S. Environmental Protection Agency. This package was for 5750,000. One half ($375,000) was a grant (EPA Grant J 851002 010) and the other half was a loan. The loan is repayable semi-annually in the amounts indicated below. Semi -annual payments are made directly to the U.S. Environmental Protection Agency; Financial Management Center; P.O. Box 371293M; Pittsburgh, PA 15251 This is not general obligation debt. Legal opinion was rendered by bond counsel, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage. Principal Principal Interest Due Due interest Year Rate * June 30 December 31 Due* Total 1991 7.00 $ - $ 10,416.67 $ - $10,416.67 1992 7.00 10,416.67 10,416.67 - 20,833.34 1993 7.00 10,416.67 10,416.67 - 20,833.34 1994 7.00 10,416.67 10,416.67 - 20,833.34 1995 7.00 10,416.67 10,416.67 - 20,833.34 1996 7.00 10,416.67 10,416.67 - 20,833.34 1997* 7.00 10,416.67 10,416.67 - 20,833.34 1998 7.00 10,416.67 10,416.67 - 20,833.34 1999 7.00 10,416.67 10,416.67 - 20,833.34 2000 7.00 10,416.67 10,416.67 - 20,833.34 2001 7.00 10,416.67 10,416.67 - 20,833.34 2002 7.00 10,416.67 10,416.67 - 20,833.34 2003 7.00 10,416.67 10,416.67 - 20,833.34 2004 7.00 10.416.67 10.415.07 - 20.831.74 $135,416.71 $145.831.78 $ - $281 2 * No interest is payable until a payment due is in default; then interest, penalties and fees become due. See grant folder for full details of default conditions. 115 t SECTION 3 STATISTICAL SECTION J STATISTICAL TABLES ' Statistical tables reflect social and economic data, financial trends and the fiscal capacity of the governmental unit. TABLE 1 KODIAK ISLAND BOROUGH KODIAK, ALASKA ' GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (a) ' LAST TEN FISCAL YEARS Local Service Other , Fiscal General Roads and Health and Operating Year Government Trails (c) Sanitation (b) Education (b) Transfers Total 1982 $1,694,923 S - S 785,644 S 906,447 S 506,125 S 3,893,139 ' 1983 1,857,316 2,034 446,001 1,386,788 4,742,292 8,434,431 1984 1,588,182 - 709,508 1,478,912 1,185,630 4,962,232 ' 1985 1,677,539 - 547,388 1,608,341 1,080,310 4,913,578 1986 1,877,136 - 563,516 1,662,858 447,669 4,551,179 ' 1987 2,089,508 - 579,930 1,901,130 553,373 5,123,941 1988 1,964,710 - 545,954 2,177,405 890,000 5,578,069 ' 1989 2,208,351 - 517,112 2,128,997 768,100 5,622,560 1990 2,478,619 - 367,921 2,334,650 553,312 5,734,502 1991 2,791,798 - 621,000 2,143,633 460,325 6,016,756 ' (a) Includes general fund only. (b) Including operating transfers for this function. (c) Kodiak Island Borough is a second -class borough and does not have road powers. Specific monies are expended for local service roads and trails in the service districts. Subsequent to fiscal period 1978, these monies are administered through a separate fund. ' Source: Borough general ledger , 118 KODIAK ISLAND BOROUGH KODIAK. ALASKA GENERAL REVENUES BY SOURCE (a) LAST TEN FISCAL YEARS TABLE 2 (a) Includes general fund only. (b) Largest single element of this figure is 5860,121 of investment earnings in an unusual year of the market. (c) Includes a $481,269 loss on investment relating to the Lion Capital Group. Source: Borough general ledger 119 Licenses Inter- Charges Fiscal and governmental for Operating Year Taxes Permits Revenue Service Miscellaneous Transfers Total 1982 52,237,755 S 22,233 52,701,874 $110,020 S 892,206 (b) S - $5,964,088 1983 1,928,259 45,444 3,086,448 118,064 472,281 83 5,650,579 1984 1,844,572 34,779 2,542,441 44,194 421,808 121,160 5,008,954 1985 1,868,049 40,386 2,365,386 25,850 454,218 15,000 4,768,889 1986 2,065,440 53,786 2,277,655 83,849 (113,025)(c) 53,660 4,421,365 1987 2,188,750 138,151 2,114,283 99,330 451,518 57,090 5,049,122 1988 2,491,065 97,959 2,291,627 100 355,802 114,635 5,351,188 1989 2,515,436 95,748 3,449,948 - 354,523 56,410 6,472,065 1990 2,640,044 120,145 1,316,238 - 540,851 68,790 4,686,068 1991 2,823,929 100,868 2,255,951 - 456,381 173,230 5,810,359 (a) Includes general fund only. (b) Largest single element of this figure is 5860,121 of investment earnings in an unusual year of the market. (c) Includes a $481,269 loss on investment relating to the Lion Capital Group. Source: Borough general ledger 119 L TABLE 3 r (a) Includes $984,930 due from City of Kodiak. Source: Borough tax records J 120 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Percent of Percent of Percent Delinquent Total Tax Outstanding Delinquent Fiscal Total Current Tax of Levy Tax Total Tax Collections Delinquent Taxes to Year Tax Lew Collections Collected Collections Collections to Tax Lew Taxes Tax Lew 1982 $2,118,431 $2,095,431 98.9% $978,969(a) $3,074,400 145.1% $95,124 4.5% 1983 1,876,462 1,844,867 98.3 94,231 1,939,098 103.3 32,488 1.7 1984 1,646,752 1,617,654 98.2 31,487 1,649,141 100.1 30,099 1.8 1985 1,508,003 1,492,923 99.0 10,733 1,503,656 99.7 19,366 1.3 1986 2,024,237 1,986,914 98.2 13,502 2,000,416 98.8 43,185 2.1 1987 2,181,410 2,176,543 99.7 12,207 2,188,750 100.3 49,235 2.2 1988 1,926,427 1,912,214 99.3 54,625 1,966,839 102.1 25,610 1.3 1989 1,991,902 1,987,251 99.7 4,474 1,991,725 99.9 21,136 1.1 1990 2,034,500 2,017,190 99.1 12,351 2,029,541 99.7 28,640 1.4 ' 1991 2,237,629 2,189,270 97.8 17,254 2,206,524 98.6 59,745 2.7 r (a) Includes $984,930 due from City of Kodiak. Source: Borough tax records J 120 TABLE 4 KODIAK ISLAND BOROUGH ' KODIAK, ALASKA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY ' LAST TEN FISCAL YEARS Ratio of Total ' REAL PROPERTY PERSONAL PROPERTY TOTAL Assessed to Total Fiscal Assessed Estimated Assessed Estimated Assessed Estimated Estimated Actual Year Value Actual Value Value Actual Value Value Actual Value Value 1982 5215,980,368 5278,781,900 $56,384,440 $159,263,600 1272,364,808 (438,045,500 62.18% 1983 307,400,381 372,300,900 72,919,918 (a) 169,581,200 380,320,299 541,882,100 70.19 ' 1984 325,435,262 425,976,900 64,550,756 (b) 225,467,800 389,986,018 651,444,700 59.86 1985 353,643,800 385,884,500 50,369,200 186,486,200 404,013,000 572,370,700 70.59 1986 374,136,300 408,336,500 46,204,800 (c) 144,110,900 420,341,100 552,447,400 76.09 1987 369,860,196 398,049,400 39,003,109 199,309,200 408,863,305 597,358,600 68.45 1988 379,969,521 390,550,900 48,795,064 204,075,100 428,764,585 594,626,000 72.11 1989 378,072,396 415,666,660 58,727,868 229,477,103 436,800,264 645,143,763 67.71 1990 406,433,607 435,940,500 73,508,740 267,181,594 479,942,347 703,122,094 68.26 1991 439,710,369 457,383,400 76,594,500 280,085,100 516,304,869 737,468,500 70.01 (a) Exempted boat full and true value for $5 and $15 fees. ' (b) Reflects exemptions of boats and inventories. (c) Exempted $5 tax for small watercraft (boats and skiffs under five ton). Source: Borough assessment and tax records 121 TABLE 5 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS (PER 5100 OF ASSESSED VALUE) LAST TEN FISCAL YEARS a. The property tax miltage for the Kodiak Island Borough has not in the past years been broken out to indicate the true miltage that would be distributed to the various entities, in all cases. b. Contributions from Woodland the last ten years is calculated to have Road Service Districts Fire Districts ' Assessed KIB City Year Acres Contribution Equivalent 1982 $337,072,196 S 676,922 2.01 1983 Fiscal General of 1984 Lighting Monashka Service Bayview Woman's Service Woman's 1986 Year Fund Kodiak Total District Bay District 1 Road Bay District 1 Bay 1989 1982 7.00 4.00 11.00 - 0.00 0.00 0.00 0.00 2.94 0.00 1983 7.00 2.00 9.00 1.50 0.00 0.00 0.50 1.50 0.50 1984 3.75 1.25 5.00 - 2.00 0.00 0.00 0.50 1.50 0.50 1985 3.75 2.00 5.75 - 2.00 0.00 0.00 0.50 1.50 0.50 1986 3.75 2.00 5.75 - 2.00 0.25 0.00 0.10 1.50 0.90 ' 1987 4.51 2.00 6.51 - 2.00 0.25 1.00 0.50 1.50 0.50 1988 4.51 2.00 6.51 - 2.00 0.25 1.00 0.50 1.50 0.25 1989 4.50 2.00 6.50 - 2.00 0.25 1.50 1.50 1.50 0.25 1990 4.50 2.00 6.50 - 1.25 0.70 1.00 1.50 1.25 1.25 1991 4.50 2.00 6.50 .75 2.00 1.00 1.00 2.50 1.25 1.25 a. The property tax miltage for the Kodiak Island Borough has not in the past years been broken out to indicate the true miltage that would be distributed to the various entities, in all cases. b. Contributions from the Borough to the School District for the last ten years is calculated to have been as follows: Fiscal Assessed Amount of Millage Year Value Contribution Equivalent 1982 $337,072,196 S 676,922 2.01 1983 284,114,955 1,172,544 4.13 1984 395,620,404 1,478,912 3.74 1985 394,608,581 1,377,345 3.49 1986 406,612,778 1,524,460 3.75 1987 404,859,425 2,140,149 5.29 1988 428,764,585 2,343,992 5.47 1989 423,038,700 2,444,882 5.78 1990 452,016,912 2,469,558 5.46 1991 516,304,869 2,484,606 4.81 Source: Borough ordinance and assessment records 122 KODIAK ISLAND BOROUGH KODIAK. ALASKA TEN LARGEST TAXPAYERS YEAR ENDED JUNE 30, 1991 TABLE 6 * Taxes actually collected were less, in some cases, due to various laws such as personal property within city limits being exempt. Source: Borough tax records 123 Percentage Percentage of total 1991 (Net)* of total Assessed Assessed Taxes Taxes Taxpayer Valuation Valuation Levied Levied International Seafoods of Alaska 2.18% 511,259,966 S 78,956 3.53% King Crab Inc. 1.78 9,208,637 59,514 2.66 Western Alaska Fisheries 1.63 8,436,179 56,279 1.51 All Alaskan Seafoods 1.60 8,258,624 51,342 2.30 Alaska Pacific Seafoods 1.52 7,860,286 49,952 2.23 T. U. of the Northland 1.46 7,530,707 16,550 .74 Sea -Land Services, Inc. 1.44 7,449,032 33,047 1.48 Waldos /O'Kraft & Son, Inc. (Retailers) 1.10 5,697,082 41,911 1.87 Breachan Enterprises .97 4,993,790 36,297 1.62 Kill Bay Plaza Association .90 4,661,360 34.960 1.56 Totals 14.58% $75,355,663 5458,808 20.50% * Taxes actually collected were less, in some cases, due to various laws such as personal property within city limits being exempt. Source: Borough tax records 123 TABLE 7 KODIAK ISLAND BOROUGH KODIAK, ALASKA RATIO OF NET GENERAL BONDED DEBT (c) LAST TEN FISCAL TEARS Sources - (a) This figure was via a joint Borough /City special census. This figure was accepted and certified by the State demographer on November 17, 1982 and later accepted by the Federal Bureau of Census. (b) 1990 population is per U.S. Bureau of Census (preliminary); others are estimates from the Borough Planning Department based on the "Housing Unit Method." (c) Information obtained from assessment records and Borough general Ledger except as otherwise noted. I 124 Ratio of Net Net Bonded Bonded Less Debt Debt to Debt Fiscal Assessed Gross Service Net Boded Assessed per Year Population Value Boded Debt Fund Debt Value CavitaL 1982 12,714(a) $337,092,196 $15,390,000 S 435,438 $14,954,562 4.4 $1,176 1983 13,079 284,114,955 22,275,000 425,438 21,849,562 7.7 1,670 1984 13,389 395,620,404 30,025,000 6,300,296 23,724,704 6.0 1,772 1985 13,748 394,608,581 25,815,000 7,154,308 18,660,692 4.7 1,357 1986 13,952 406,612,778 30,665,000 7,776,557 22,888,443 5.6 1,641 1987 14,127 404,859,425 25,925,000 7,279,292 18,645,708 4.6 1,320 1988 14,375 428,764,585 22,160,000 7,111,644 15,048,356 3.5 966 1989 15,575 436,800,264 17,550,000 5,310,721 12,239,279 2.8 786 1990(b) 15,558(b) 452,016,912 15,310,000 6,683,745 8,826,255 1.9 567 1991 15,679 516,304,869 13,735,000 7,307,730 6,427,270 1.2 410 Sources - (a) This figure was via a joint Borough /City special census. This figure was accepted and certified by the State demographer on November 17, 1982 and later accepted by the Federal Bureau of Census. (b) 1990 population is per U.S. Bureau of Census (preliminary); others are estimates from the Borough Planning Department based on the "Housing Unit Method." (c) Information obtained from assessment records and Borough general Ledger except as otherwise noted. I 124 KODIAK ISLAND BOROUGH KODIAK. ALASKA COMPUTATION OF DIRECT AND OVERLAPPING DEBT YEAR ENDED JUNE 30, 1991 TABLE 8 (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. 125 Percentage Kodiak Applicable Island Net Debt to this Borough's Name of Governmental Unit Outstanding (a) Governmental Unit (b) Share of Debt (c) Kodiak Island Borough: General obligation bonds S 6,427,270 100% S 6,427,270 City of Kodiak: General obligation bonds 940,000 64 601,600 Revenue bonds 4.745,000 64 3,036.800 Total 512.1 510 (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. 125 TABLE 9 Assessed value Plus exempt property Total KODIAK ISLAND BOROUGH KODIAK, ALASKA COMPUTATION OF LEGAL DEBT MARGIN JUNE 30, 1991 S 516,304,869 2,002,661,025 S2.518.965.894 The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions. Debt capacity is ultimately determined by the marketplace. Source: Borough assessment records 126 TABLE 10 KODIAK ISLAND BOROUGH KODIAK, ALASKA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES AND TRANSFERS LAST TEN FISCAL YEARS (a) Seriat maturities in the case of serial bonds; arxwaL Debt Service Fund requirements in the case of term bonds. Source: Borough general ledger and debt documents 127 Ratio of Total Debt Service Fiscal Principal Interest Totat Debt General Expenditures to General Expenditures Year (a) and fees Service and Transfers (percent) 1982 S 220,000 $1,680,912 $1,900,912 $3,893,139 48.8% 1983 515,000 1,185,806 1,700,806 8,434,431 20.2 1984 1,750,000 1,555,900 3,305,900 4,962,232 66.6 1985 4,210,000 2,108,539 6,318,539 4,913,578 128.6 1986 5,080,000 1,727,562 6,807,562 4,551,179 149.6 1987 4,750,417 1,787,384 6,537,801 5,123,941 127.6 1988 3,785,834 1,695,468 5,481,302 5,578,069 98.3 1989 5,135,833 1,502,762 6,638,595 5,622,560 118.1 1990 2,260,833 978,583 3,239,416 5,803,292 55.8 1991 1,595,834 1,019,401 2,615,234 6,016,756 43.5 (a) Seriat maturities in the case of serial bonds; arxwaL Debt Service Fund requirements in the case of term bonds. Source: Borough general ledger and debt documents 127 TABLE 11 KODIAK ISLAND BOROUGH KODIAK, ALASKA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Fiscal Year Population (a) School Enrollment (b) 1982 12,714 2,106 1983 13,079 2,189 1984 13,389 2,180 1985 13,748 2,295 1986 13,952 2,285 1987 14,127 2,329 1988 14,375 2,531 1989 15,575 2,304 1990 15,558 2,328 1991 15,679 2,398 Urw=lovment Rate CO 12.1% 9.7 6.9 9.6 7.7 7.4 6.2 3.2 5.6 8.2 (a) 1990 per U.S. Bureau of Census (preliminary); other years per Borough Planning Department. (b) Kodiak Island Borough School District. (c) Department of Labor, Anchorage. 128 KODIAK ISLAND BOROUGH KODIAK, ALASKA SALARIES AND SURETY BONGS OF PRINCIPAL OFFICIALS YEAR ENDED JUNE 30, 1991 TABLE 12 (1) By ordinance in 1984 the Kodiak Island Borough Assembly elected to decrease the amount of bond payments and to self - insure except for the treasurer and cashier. These positions are bonded at $1,000,000 and $50,000, respectively. (2) Also covered by elected officials errors and omission policy of $1,000,000. Source: Borough personnel records 129 Amount of Name of Official Title Annual Salary Surety Bond (1) Jerome M. Selby Mayor $65,000 (2) See page iv of intro- ductory section Assembly members 2,400 (2) Contracted Attorney - ' Karleton G. Short Finance Director /Treasurer 56,867 51,000,000 Earl Smith Fire Chief, Service Area One 61,152 - Perry L. Page Data Processing Manager 55,494 - Vacant Borough Clerk - " Linda Freed Director of Planning and Community Development 69,056 - Anna Holmes Cashier 25,750 50,000 Patrick Carlson Assessor /Appraiser 55,494 - Pam Delys- Baglien Director of Mental Health 81,889 - Ray Camardello Facilities Coordinator 54,184 - Cheryl Bolger Accountant 42,556 - (1) By ordinance in 1984 the Kodiak Island Borough Assembly elected to decrease the amount of bond payments and to self - insure except for the treasurer and cashier. These positions are bonded at $1,000,000 and $50,000, respectively. (2) Also covered by elected officials errors and omission policy of $1,000,000. Source: Borough personnel records 129 KODIAK ISLAND BOROUGH KODIAK. ALASKA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS YEAR ENDED JUNE 30, TABLE 13 * Estimated actual value. Source: Borough assessing records, City of Kodiak building department and local bankers 131 CONSTRUCTION PROPERTY VALUE Commercial Residential Deposits in Fiscal Year No. of Units Value No. of Units Value Local Banks (1) Commercial Residential Nontaxable 1982 53 S 826,596 71 S 3,208,175 $71,801,883 S 86,107,893 $129,872,475 S 208,695,345 1983 77 7,708,474 136 10,631,463 54,032,065 107,487,339 199,913,042 245,623,546 1984 63 2,965,496 74 5,495,636 59,010,831 104,233,851 220,001,411 739,960,807 1985 62 10,316,833 99 7,928,241 61,598,752 116,411,447 236,302,401 1,053,965,717 1986 54 3,012,970 118 10,563,802 64,420,672 115,574,577 258,311,716 1,127,834,040 1987 35 4,256,169 134 5,313,110 70,402,810 114,409,875 252,950,321 1,134,524,305 1988 42 549,382 91 4,314,003 72,068,409 123,053,031 255,417,891 1,159,131,464 1989 22 1,174,346 131 6,421,773 93,830,000 128,202,254 266,409,021 1,177,364,559 1990 18 1,709,715 104 8,109,662 90,221,433 115,477,806 314,539,889 1,993,871,408 1991 69 3,692,371 152 5,706,524 90,392,243 130,469,150 323,060,260 2,002,661,025 * Estimated actual value. Source: Borough assessing records, City of Kodiak building department and local bankers 131 KODIAK ISLAND BOROUGH KODIAK. ALASKA MISCELLANEOUS STATISTICAL DATA TEARS ENDED JUNE 30, 1982 THROUGH JUNE 30, 1991 Date of incorporation - September 30, 1963, Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended, Form of Goverrment - Mayor /Assembly. Land Area - square miles Miles of improved street Miles of sanitary sewers Number of water taps Number of sanitary sewer taps Building permits: Permits issued Value of buildings (thousands) Fire protection: Number of fire stations Number of employees Police protection - none Recreation: Parks - number of acres Facilities: Number of playgrounds Number of swimming pools Education: Number of schools: City of Kodiak Elementary City of Kodiak Junior High City of Kodiak High School Village Schools (c) Number of support personnel (d) Number of teachers Number of students Number of municipal employees Elections: Number of registered voters Number voting in last election Percent of registered voters 1982 1983 1984 1985 4,900 4,900 4,900 4,900 16.48 16.48 16.48 17.29 - - 3.7 4.2 - 309 309 309 - 170 170 170 124 213 137 161 4,034.7 18,339.9 8,416.1 17,858.0 - - 2 2 - - 1 1 2,440 3,277 4,099 3,414 - 4 5 5 1 1 1 1 3 3 3 3 1 1 1 1 1 1 1 1 7 7 7 7 178 179 174 158 150 150 156 157 2,106 2,189 2,180 2,295 39 46 49 46 5,883 5,115 5,200 5,603 1,619 1,720 2,079 3,075 27.5 33.6 44.0 46.6 (a) Prior years include lands designated recreational; 1986 and after represents actual acres of parks. (b) By annexation, effective March 4, 1989 the Borough has grown an additional 12,830 square miles. Total Borough is now 22,395 square miles with a land mass of 7,130 square miles (see map on page ix). (c) The majority of Village Schools are grades K -12. (d) All non - teaching employees. Source: Borough records 132 TABLE 14 ' 1986 1987 1988 1989 1990 1991 4,900 4,900 4,900 7,130 (b) 7,130 7,130 19.53 20.3 21.5 21.5 21.5 21.5 9.63 15.49 16 16 16 16 ' 410 659 707 748 748 748 327 619 666 727 727 727 172 169 133 153 122 221 12,196.8 9,570.0 4,863.4 7,596.1 9,819.3 9,398.9 2 2 2 2 2 2 1 1 1 1 1 1 220(a) 222 223 223 223 223 14 15 15 15 15 1 ' 1 1 1 1 1 1 1 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 7 7 7 8 8 9 159 152 167 172 165 175 154 148 169 167 167 167 ' 2,285 2,329 2,351 2,304 2,328 2,398 49 53 57 66 70 75 6,463 6,559 5,427 6,150 6,352 6,263 ' 2,356 2,094 2,507 1,459 2,327 1,993 36.4 31.9 46.2 23.7 37.0 31.8 133