CAFR FY2002KODIAK ISLAND BOROUGH
Comprehensive Annual Financial Report
June 30, 2002
(With Independent Auditors' Report Thereon)
Kodiak, Alaska
Pat Carlson, Borough Manager
Prepared by Finance Department
Karleton Short, Finance Director
Marian Royall, Revenue Accountant
KODIAK ISLAND BOROUGH
Table of Contents
Page
Introductory Section
Elected Officials (Photographs)
v
Borough Officials
vi
Boards and Committees
vii
Map of Kodiak Island Borough
ix
GFOA Certificate of Achievement
x
Organizational Chart
xi
Letter of Transmittal
xii
Financial Section
Independent Auditors' Report
1
General Purpose Financial Statements:
Combined Balance Sheet — All Fund Types, Account Groups, and Discretely Presented
Component Unit
3
Combined Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances —
All Governmental Fund Types and Discretely Presented Component Unit
7
Combined Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances —
Budget and Actual — General Fund, Special Revenue Fund, and Debt Service Funds
9
Combined Statement of Revenues, Expenses, Transfers, and Changes in Retained Earnings —
Proprietary Fund Types
11
Combined Statement of Cash Flows — Proprietary Fund Types
12
Notes to Financial Statements
13
Additional Information
Combining, Individual Fund and Account Group Financial Statements and Schedules:
General Fund:
Balance Sheets
36
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances — Budget
and Actual
37
Schedule of Expenditures and Transfers — Budget and Actual
39
i
KODIAK ISLAND BOROUGH
Table of Contents
Special Revenue Funds:
Combining Balance Sheet
43
Combining Statement of Revenues, Expenditures, Transfers, and Changes in Fund
Balances (Accumulated Deficits)
47
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances — Budget
and Actual:
Fire and Road Service Areas:
Fire:
Fire Protection Area No. 1
48
Womens' Bay Fire Department
52
Kodiak Airport Fire District
53
Road:
Monashka Bay Road Service Area
53
Service District No. 1
54
Womens' Bay Service Area
55
Bay View Road Service Area
56
Service Area No. 2
57
Coastal Management
58
Child Care Assistance Program
59
Welfare to Work Program
60
L.E.P.C.
61
Land Sales
62
Buildings and Grounds
63
Woodland Acres Street Light Service Area
64
Kodiak Arts Council
65
Facilities
66
Tourism Development
67
Debt Service Funds:
Combining Balance Sheet
68
Combining Statement of Revenues, Expenditures, Transfers, and Changes in Fund
Balances
69
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balance — Budget
and Actual:
Education and Health
70
Other
71
IF
KODIAK ISLAND BOROUGH
Table of Contents
Capital Project Funds:
Combining Balance Sheet
Combined Statement of Revenues, Expenditures, Transfers, and Changes in Fund
Balances
Schedule of Capital Projects
Enterprise Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenses, Transfers, and Changes in Retained
Earnings (Accumulated Deficits)
Combining Statement of Cash Flows
Municipal Solid Waste Collection and Disposal Fund:
Balance Sheets
Statement of Revenues, Expenses, Transfers, and Changes in Accumulated Deficits —
Budget and Actual
Statements of Cash Flows
Hospital Facilities Fund:
Balance Sheets
Statement of Revenues, Expenses, Transfers, and Changes in Retained Earnings —
Budget and Actual
Statements of Cash Flows
911 Services Fund:
Balance Sheets
Statement of Revenues, Expenses, Transfers, and Changes in Retained Earnings —
Budget and Actual
Statements of Cash Flows
Kodiak Fisheries Research Center Fund:
Balance Sheets
Statement of Revenues, Expenses, Transfers, and Changes in Retained Earnings —
Budget and Actual
Statements of Cash Flows
72
73
74
76
77
78
79
80
81
82
83
84
i
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in
I I KODIAK ISLAND BOROUGH
II Table of Contents
General Fixed Assets Account Group:
Schedules of Fixed Assets by Source 91
Schedule of General Fixed Assets by Function and Activity 92
Schedule of Changes in General Fixed Assets by Function and Activity 93
' General Long -Term Debt Account Group:
Schedules of Long -Term Debt 94
' Additional Information — Bonded Indebtedness:
Summary of Bonded Debt Service Requirements to Maturity 95
General Obligation Bonds, 1993 Series A 96
General Obligation Bonds, 1994 Series A 97
General Obligation Refunding Bonds, 1998 Series A 98
General Obligation Bonds, 2000 Series E 99
1 General Obligation Bonds, 2000 Series F 100
Statistical Section
' Statistical Tables:
General Governmental Expenditures and Other Uses by Function — Last Ten Fiscal Years 101
General Revenues by Source — Last Ten Fiscal Years 102
Property Tax Levies and Collections — Last Ten Fiscal Years
103
Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years
104
Property Tax Rates and Contributions to the School District Last Ten Fiscal Years
105
Ten Largest Property Taxpayers
106
1
Ratio of Net General Bonded Debt — Last Ten Fiscal Years
107
Computation of Direct and Overlapping Debt
108
Computation of Legal Debt Margin
109
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
Expenditures and Transfers — Last Ten Fiscal Years
110
Demographic Statistics — Last Ten Fiscal Years
111
Property Value, Construction and Bank Deposits — Last Ten Fiscal Years
112
Miscellaneous Statistical Data — Last Ten Fiscal Years
113
MAYOR AND ASSEMBLY MEMBERS
Robin Heinrichs
Deputy Mayor, At Large, 2004
Gabrielle LeDoux
Mayor, 2004
Tom Abell
At Large, 2002
Shawn (Tuck) Bonney
At Large, 2002
Pat Branson
At Large, 2004
Greg Razo
At Large, 2003
Wayne Stevens
At Large, 2003
v
Darlene Turner
At Large, 2002
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11
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KODIAK ISLAND BOROUGH
Kodiak, Alaska
Borough Officials
Year Ended June 30, 2002
BOROUGH ASSEMBLY
Tuck Bonney `02
Robin Heinrichs (Deputy Mayor) `04
Wayne Stevens `03
BOROUGH MAYOR
Gabrielle LeDoux `04
Patrick Carlson .......................................................................................... ............................... Borough Manager
Karleton G. Short ................................................ ...............................
........................Finance Director/Treasurer
Tom Abell `02
.....................Engineering and Facilities Director
Patricia Branson `04
........................Borough Clerk
Greg Razo `03
......................Community Development Director
Darlene Turner `02
l '
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Borough Officials
Year Ended June 30, 2002
BOROUGH ASSEMBLY
Tuck Bonney `02
Robin Heinrichs (Deputy Mayor) `04
Wayne Stevens `03
BOROUGH MAYOR
Gabrielle LeDoux `04
Patrick Carlson .......................................................................................... ............................... Borough Manager
Karleton G. Short ................................................ ...............................
........................Finance Director/Treasurer
Bud Cassidy .............................................. ...............................
.....................Engineering and Facilities Director
Judith A. Nielsen, CMC .......................................................... ...............................
........................Borough Clerk
Duane Dvorak .......... ............................... .. ...............................
......................Community Development Director
Geoff Mould .............................................................................................................
............................... Assessor
Robert Himes .....................................................................................
............................... Assistant Fire Chief
Jamin, Ebell, Schmitt & Mason .................................. ...............................
Borough Attorney (Contracted Firm)
B etty Walters ....................................................... ...............................
................. Superintendent, School District
Michelle .....................................................................................
............................... General Accountant
Marian Royall ........................................................................................
............................... Revenue Accountant
Laurie Whiddon .................................................................... ...............................
.....................Purchasing Agent
Vi
School Board
* Norm Wooten
Roy Brown
Jeff Stephan
Barry Still
Elizabeth Odell
Mike Woolard, USCG Rep.
Greg Razo — Assembly Rep.
Tuck Bonney — Assembly Rep.
Sheila Roberts - Staff
Rebecca Moore, Student Rep.
Betty Walters, KIBSD, ex- officio
Hospital & Health Facilities Advisory Board
INACTIVE
Mental Health Center Advisory Board
INACTIVE
Planning and Zoning Commission
* Clarence W. Selig
John J. "Jake" Ketscher
Barbara Williams
Robert Lindsey
Reed Oswalt
Cheryl Boehland
Duane Dvorak, KIB Staff
Woodland Acres Street Lighting
Service Area Advisory Board
VACANT
Citizens Board of Equalization
* Jim Carmichael
Tim Hurley
Cheryl McNeil
Carrie Morton
Jim Nagan
Michael Machulsky, Alternate
Geoff Mould, KIB staff
Judi Nielson, KIB staff
Parks and Recreation Committee
Peggy Dvorak
Patrick Saltonstall
Mike Sirofchuck
Hans Tschersich
Vincent Walser
Tuck Bonney, Assembly Rep.
Cheryl Boehland, P &Z Rep.
Wayne Biessel, State Rep., ex- officio
Ian Fulp, City Rep., ex- officio
Erin Whipple, KIB Rep
Rebecca Moore, Student Rep.
Building Code Board of Appeals
(Architectural Review Board)
Scott Arndt
Jenrol Friend
Gregg Hacker
Charles Jerling
Jay Johnston
Ted Wade
Robin Heinrichs, Assembly Rep.
Bob Tucker, KIBSD Rep., ex- officio
Roy Brown, School Board Rep., ex officio
Barry Still, School Board Rep, ex officio
Bud Cassidy, KIB Rep., ex- officio
Personnel Advisory Board
Susan Eoff
Bill King
Linda Moore
Ted Wade
Diane Deshazo
Lauri Whiddon, KIB staff
Data Processing Steering Committee
Pat Carlson
Gabrielle LeDoux
Karleton Short
Betty Walters
Dave Jones
Betty Walters
Fire Protection Area No. 1
Advisory Board
* Scott Arndt
Eric McFarlin
Roy Aguirre
Jeff Halcomb
Cliff Davidson
Robert Himes, ex- officio
Sharon Lea Adinolfi, KIB staff
Bay View Road Service Area
Advisory Board
Dawn Black
Gale Hagemeyer
Reed Oswalt
Fred Roberts
James Schauff
Service Area No. 2 Commission
INACTIVE
Vii
INTRODUCTORY SECTION
Service Area No. 1 Advisory Board
* Robert Greene
Kevin Arndt
Scott Arndt
Ed Mahoney
Kaye McClain
Jennifer Spencer
Richard Walker
Kodiak Area Transit System Committee
INACTIVE
Viii
Womens Bav Service Area
Advisory Board
* Mike Wilchek
Fred Waltman, II
David Conrad
Linda Estes
Edward Gondek
Linda Hinson
Chris Lynch
Dale L. Rice, ex- officio
Airport Advisory Committee
* Stosh Anderson
Charles Barber
Dean Andrew
Bill King
Murphy Fortier
Penny Jordahl
Bob Stanford
Wayne Stevens
Justin Vincent
John Chya, ex- officio
CDR Jim Poyer, USCG ex- officio
Borough Clerk's Office, KIB staff
Airport Fire Protection District Advisory Board
Michael Machulsky
Arlene Mauldin
Rene Sy
* Indicates chair
Monashka Bay Road Service Area
Advisory Board
* Dave Sundberg
Alayne Larsen
Darlene Turner
Jeff Hamer
'
Jack McFarland
Emergency Services Organization
Pat Carlson, Borough Manager
'
Gabrielle LeDoux, Borough Mayor
Carolyn Floyd, City Mayor
Linda Freed, City Manager, City of Kodiak
Capt. Robert Lachowsky, USCG
Capt. Darrel Nelson, USCG
Sgt. Maurice Hughes, Alaska State Troopers
Service Area No. 1 Advisory Board
* Robert Greene
Kevin Arndt
Scott Arndt
Ed Mahoney
Kaye McClain
Jennifer Spencer
Richard Walker
Kodiak Area Transit System Committee
INACTIVE
Viii
Womens Bav Service Area
Advisory Board
* Mike Wilchek
Fred Waltman, II
David Conrad
Linda Estes
Edward Gondek
Linda Hinson
Chris Lynch
Dale L. Rice, ex- officio
Airport Advisory Committee
* Stosh Anderson
Charles Barber
Dean Andrew
Bill King
Murphy Fortier
Penny Jordahl
Bob Stanford
Wayne Stevens
Justin Vincent
John Chya, ex- officio
CDR Jim Poyer, USCG ex- officio
Borough Clerk's Office, KIB staff
Airport Fire Protection District Advisory Board
Michael Machulsky
Arlene Mauldin
Rene Sy
* Indicates chair
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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, 2001
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
UNTEO STATES y n
AND
GNADA °
CDWMTVN President
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CXICAiA
Executive Director
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BOROUGH
BOROUGH
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MAYOR
ASSEMBLY
BOROUGH
BOROUGH
BOROUGH
BOROUGH
MANAGER
ATTORNEY
CLERK
ADMINISTRATIVE
DEPUTY
ASSISTANT
CLERK
ARTS COUNCIL
DIRECTOR
ASSISTANT
ASSISTANT
FIRE CHIEF
CLERK
COMMUNITY ENGINEERING
FINANCE /MI5
DEVELOPMENT FACILITIES ASSESSOR
DIRECTOR DIRECTOR
DIRECTOR
KFRC MAINTENANCE
ASSOCIATE MAINTENANCE WORKER
ENGINEER
PROPERTY
PLANNER
APPRAISER
REVENUE
GENERAL
SENIOR SYSTEMS
ACCOUNTANT
ACCOUNTANT
ANALYST
KFRC SECRETARY III
ASSOCIATE RECEPTIONIST
ASSESSMENT
PLANNER
CLERK It
CASHIER
ACCOUNTING
OPERATIONS
BALER /LANDFILL
TECH /PAYROLL
SUPERVISOR
DRAFTING SUPERVISOR
ASSESSMENT
TECHNICIAN
CLERK I
ACCOUNTING
LAN
BALER
TECH /ACCTS.
PAYABLE
ADMINISTRATOR
OPERATOR II
SECRETARY III
SECRETARY III
BALER
CHIlO CARE
ASSISTANCE
OPERATOR I
ADMINISTRATOR
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Kodiak Island Borough
Finance Department
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486 -9323 Fax (907) 486 -9392
October 31, 2002
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, 2002, is submitted herewith.
The Borough Finance Department prepared this report. Responsibility for the accuracy, completeness, and
fairness of presentation, including all disclosures, rests with the Borough. We believe the data, as presented, is
accurate in all material respects, is presented in a manner designed to fairly set forth the financial position and
results of operations of the Borough as measured by the financial activity of its various funds. All disclosures
necessary to enable the reader to gain maximum understanding of the Borough's financial affairs have been
included.
This comprehensive annual financial report is presented in three main sections: introductory, financial, and
statistical. The introductory section includes background on the Borough, the fund accounting concepts used
by the Borough, and some financial presentations. The financial section includes the report of the independent
accountants, combined financial statements, notes to combined financial statements, and the more detailed
combining and individual financial statements and schedules. The statistical section includes selected financial
and general information generally presented on a ten -year comparative basis.
All funds and account groups of the Kodiak Island Borough are included in this financial report, as well as the
component unit of the Borough, the Kodiak Island Borough School District.
GENERAL INFORMATION
The Kodiak Island Borough lies at the western border of the Gulf of Alaska, approximately 40 miles south of the
Kenai Peninsula. Kodiak Island is the largest island in Alaska and the second largest in the United States.
About two- thirds of the Borough lies in the Kodiak archipelago with the remaining third 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 powers granted to the Borough include area -wide powers and non
area -wide powers. Area -wide powers are health, education, assessment and collection of taxes for both the
Borough and cities within the Borough, planning and zoning, and general administrative services. Non area -
wide powers include parks and recreation, economic development, solid waste disposal, and animal control.
Service districts within the Kodiak Island Borough provide fire protection, road maintenance and construction,
and street lighting. A Mayor /Manager form of government governs the Borough. The Mayor is elected at large
while the Borough Assembly appoints the Manager. The Assembly is composed of seven members who are
elected at- large.
xii
The criteria used in determining the reporting entity are consistent with the Codification of Governmental
Accounting and Financial Reporting Standards Section 2100, "Defining the Reporting Entity ". Based on these
criteria, the various funds and account groups (being all the funds and account groups of the Borough) shown in
the Table of Contents are included in this report..
ECONOMIC CONDITION AND OUTLOOK
Economic Sectors
The major economic sectors of the Borough are commercial fishing, logging, and tourism. Being located in the
Gulf of Alaska and the North Pacific Ocean places the Kodiak Island Borough near some of the richest fishing
grounds in the world. In 2001, Kodiak was ranked third among commercial fishing ports in the United States in
terms of value of seafood landed. Additionally, Kodiak is Alaska's largest fishing port, homeport to more than
700 commercial fishing vessels.
The major sector of the Kodiak economy is, by far, commercial fishing, accounting for ninety -three percent of
the severance tax revenue collected and more than half of the jobs in Kodiak.
According to the National Marine Fisheries Service, 285.5 million pounds of fish were landed at the Port of
Kodiak in 2001 with an ex- vessel value of 74.4 million dollars. In 2000, 280.8 million pounds were landed with
an ex- vessel value of 94.5 million dollars.
The severance tax revenue collected for timber in fiscal year 2002 was $46,007. This decreased from fiscal
year 2001's collection of $56,019. This decrease is due to the economy in Asia and Japan. These two markets
are the main customers of Alaskan timber. The domestic market is not an option because of U.S. shipping laws.
To sell to the domestic market, American shipping companies must be used. This drives up the price of
Alaskan timber, making the domestic market unprofitable.
xiii
Number of ounds cau ht
2001
2000
Total for year
285,500,000
Total for year
280,883,189
Percent
Ranking by
Percent
Ranking by
Species
Pounds
of total
$ per pound
Species
Pounds
of total
$ per pound
pollock
90,766,588
32%
5
Pollock
102,229,713
36%
3
salmon
78,819,439
28%
8
salmon
64,936,708
23%
10
pacific cod
54,670,560
19%
9
pacific cod
61,800,000
22%
9
rock sole
11,351,146
4%
7
halibut
10,191,805
4%
7
Total
235,607,733
83%
Total
239,158,226
85%
The severance tax revenue collected for timber in fiscal year 2002 was $46,007. This decreased from fiscal
year 2001's collection of $56,019. This decrease is due to the economy in Asia and Japan. These two markets
are the main customers of Alaskan timber. The domestic market is not an option because of U.S. shipping laws.
To sell to the domestic market, American shipping companies must be used. This drives up the price of
Alaskan timber, making the domestic market unprofitable.
xiii
Exvessel value
2001
2000
Total for year
$ 74,400,000
Total for year
$ 94,474,400
Percent
Ranking by
Percent
Ranking by
Species
Exvessel value
of total
$ per pound
Species
Exvessel value
of total
$ per pound
salmon
18,845,728
25%
8
salmon
24,030,302
25%
8
pacific cod
15,854,463
21%
9
pacific cod
23,146,998
25%
11
pollock
12,707,322
17%
5
Pollock
21,500,000
23%
17
halibut
8,437,310
11%
15
halibut
8,720,096
9%
3
Total
$ 55,844,823
75%
Total
$ 77,397,396
82%
The severance tax revenue collected for timber in fiscal year 2002 was $46,007. This decreased from fiscal
year 2001's collection of $56,019. This decrease is due to the economy in Asia and Japan. These two markets
are the main customers of Alaskan timber. The domestic market is not an option because of U.S. shipping laws.
To sell to the domestic market, American shipping companies must be used. This drives up the price of
Alaskan timber, making the domestic market unprofitable.
xiii
The tourism industry in Kodiak is seasonal; 76% of our visitors are here during the summer months. Tourists
come to our island to enjoy the beauty of the island through hunting, hiking, camping, and fishing. They also
come for the history, the culture and the wildlife that is abundant throughout Kodiak.
According to the Alaska Visitor Statistics Program, visitors to Kodiak tend to stay longer than the average visitor
to the state and are significantly more likely to be repeat visitors. These visitors tend to spend more than twice
as much as the average visitor to other regions in Alaska. In 2002, Visitors to Kodiak Island Borough generated
an estimated $153,000 in transient accommodations tax revenue and brought in an estimated $19 million in
total revenues.
Employment
The labor force in Kodiak is dominated by the fishing industry. For the calendar year 2001, approximately 31%
of the workforce was employed in the fish harvesting area. The U. S. Coast Guard and other government
entities made up 20% of the workforce. Retail and wholesale sectors were 17 %, the service sector was 21 %,
and the remaining 11 % was made up of construction, transportation, communication, utilities, financial services,
insurance and real estate.
Employment varies throughout the year with July, August, and September being the peak months due to the
increased activity in the fisheries and related businesses, and then declines in November and December when
fishing quotas are reached. The unemployment rate as of June 30, 2002 was 14.9% percent compared to 10.4
percent in 2001 and 12.8 percent in 2000. Throughout fiscal year 2002, the unemployment rate has fluctuated
from 4.7% to 14.9°/x, with an average of 8.9 %.
Population
The estimated population of the Kodiak Island Borough for fiscal year 2002 is 13,913. Kodiak Island Borough
ranks seventh in population when compared to other boroughs and unified municipalities throughout the state.
The City of Kodiak is the eighth largest city in the state of Alaska.
Kodiak is the home to the United States Coast Guard's largest facility. Among the various Coast Guard
operating and support commands, there are approximately 1,200 military and civilian personnel and 1,600
military dependents.
MAJOR INITIATIVES
In preparing the fiscal year 2002 budget, the Kodiak Island Borough identified several major projects to be
addressed during the year. All major projects are listed in Exhibit D -3 of the comprehensive annual financial
report.
No new significant capital projects were started or expanded in fiscal year 2002.
ACTIVITY SERVICE EFFORTS AND ACCOMPLISHMENTS
The Borough provides a variety of services including education, health, solid waste collection and disposal,
planning and zoning, public improvements, and general administration. The Borough provides for education
through the Kodiak Island Borough School District, a component unit of the Kodiak Island Borough. In order to
provide adequate health care, the Borough has leased the Hospital and Care Center to Providence of Alaska
Medical Center. Providence of Alaska also took over operating the Mental Health Center from the Borough
January 2, 1998.
The Borough provides for solid waste collection and disposal by contracting collection services through an
outside source while operating the landfill.
The Borough has four road service areas, three fire protection areas, and one street light service area.
xiv
The Borough contracts with the City of Kodiak for building inspection services for building outside the city limits.
In fiscal year 2002, 220 building permits were issued with a value of $11,934,322. The number of permits
decreased by eleven over 2001, along with a decrease in value of $947,155.
FINANCIAL INFORMATION
DISCUSSION OF CONTROLS
Management is extremely aware of the importance of a strong internal control structure. Although present
controls are considered to be highly satisfactory and adequate, they continue to be scrutinized periodically for
enhancements.
Internal Controls
The Borough's accounting system depends upon a strong system of internal controls. The Borough Finance
Department focuses on all aspects of internal control. The Borough Finance Department wants to ensure the
safeguarding of Borough assets and the delivery of reliable and accurate financial information. Duties are
segregated as much as possible in a small office, which limits individual control over any one area. Internal
control policies are reviewed at least annually and documented to reflect any procedural changes that are
deemed necessary. Cross training and segregation of duties are considered valuable in the internal control
structure.
Budgetary Controls
The Borough uses the modified accrual basis of accounting for governmental funds and the accrual basis for
enterprise funds. Under the modified accrual basis of accounting, revenues are recognized when measurable
and available and expenditures are recognized when incurred.
Budgetary control is maintained by an annual appropriation system supplemented with an additional
appropriation approximately halfway through the fiscal year. Budgetary control is also maintained through the
use of an encumbrance system. As purchase orders, contracts, and other obligations are issued,
corresponding amounts of appropriations are reserved by the use of encumbrances so that appropriations will
not be overspent.
A public hearing and the adoption of a budget ordinance appropriates all new funds. The Assembly makes
appropriation transfers between funds and /or departments only after the adoption of an ordinance. Borough
staff may execute transfers between line items within a department.
GENERAL GOVERNMENT FUNCTIONS
The following charts summarize General Fund revenues for the fiscal year ended June 30, 1993 compared to
the fiscal year ended June 30, 2002. This chart includes General Fund revenues only.
Fiscal Year 1993 Fiscal Year 2002
Investment Income
4°%
Licenses, Permits,
Fees and C
6%
Intergovernmental
28°%
Severance lazes
10%
Property Taxes
52%
Investment Income
2%
Licenses, Permits,
Fees ar
2
Intergovemmenta
28%
Severance Ta;
6%
Property Taxes
62%
xv
'
The following
from the
for General
Fund
schedule summarizes changes
prior
year revenues:
Increase (Decrease)
Revenue Sources
2002
2001
Amount
Percent
Property Taxes
$ 7,289,280
$ 7,280,951
$ 8,329
0.1
Severance Taxes
728,064
854,233
(126,169)
(14.8)
Intergovernmental
3,397,240
2,135,483
1,261,757
59.1
Licenses, Permits, Fees and Other
236,758
140,074
96,684
69.0
Investment Income
294,677
583,633
(288,956)
(49.5)
'
Total
*
$ 11,946,019
$ 10,994,374
$ 951,645
8.7
This percentage is the change in overall
totals, not the column.
Property tax is the largest source of revenue for the General Fund of the Kodiak Island Borough. The minor
increase in property tax is solely based on appraised value; there was no mill rate increase for fiscal year 2002.
Severance tax revenues decreased from $854,233 in fiscal year 2001 to $728,064 in fiscal year 2002. The tax
related to the fishing industry decreased by $116,621 and the severance tax on timber decreased by $10,012.
The decrease in the fish tax is due to the limitations on fishing near Stellar Sea Lions habitat and lower prices
being paid for fish.
The increase in intergovernmental revenue is due to two payments from the federal government for payment in
lieu of taxes (PILOT). Historically, the federal government remits PILOT in September. This payment is based
on the tax amount for the previous fiscal year. In June 2002, the federal government decided to match up
PILOT payments for municipalities; remitting the payment in the same fiscal year that it is due. This decision
created an extra receipt of PILOT in June in the amount of $ 685,121. The federal government will continue to
remit payment for PILOT in June of each year.
Licenses, permits, fees and other revenue sources had an increase of $96,684 due to two separate sources.
We received $69,687 from Southwest Alaska Municipal Conference ( SWAMC). SWAMC received
approximately $29 million from the federal government to distribute amongst fishing communities and fishermen
to help offset the financial impact of the federal restriction of fishing near areas of sea lion habitat areas. The
other source was the receipt of $38,064 from the State of Alaska for proceeds from class action suit against
Bank of America for negligence in bond redemption activities.
The Borough had less investment income in fiscal year 2002 due to poor interest rates.
The following chart compares General Fund expenditures and operating transfers by function for the years
ending June 30, 1993, and June 30, 2002:
Year End June 30, 1993 Year End June 30, 2002
Community
Development
11%
Culture and Recreation
6%
Education
5%
Health and Sanitation
16%
Public Safety
3%
General
Government
59%
Community
Development,
4%
Culture and Recreation
1% i49
Education
68%
General Government
24%
Public Safety
1%
Health and Sanitation
2%
xvt
It is the goal of the Kodiak Island Borough to maintain a General Fund balance of at least 1 to 2 million dollars.
The fund balance as of June 30, 2002 was $2,838,837. This is $1,419,159 more than the June 30, 2001
balance of $1,419,678. The following table reflects the fund balance of the General Fund at the close of
business for the past ten fiscal years:
General Fund Balance
Last ten fiscal years
3,500,000
3,000,000
2500,000
2,000,000
1,500,000
1,000,000
500,000
PROPRIETARY OPERATIONS
In fiscal year 2002, the Municipal Solid Waste Fund had operating loss of $51,284, compared to last year's
operating income of $8,444. The net loss for fiscal year 2002 was $125,273; this is decrease of $214,438 from
last year. This loss is due to the recognition of interest payable on the State of Alaska loan to expand the
landfill and the loss of intergovernmental revenue.
On April 22, 1997 the Kodiak Island Borough leased the Kodiak Island Hospital to Providence Health System in
Alaska. The Hospital Facilities Fund accounts for the bonded debt related to the construction of the hospital
addition. The main source of revenue is the monthly lease payment of $60,000. The hospital also receives a
portion of state revenue sharing. Their portion for fiscal year 2002 was $39,617, a $290 reduction from fiscal
year 2001. Their lease stipulates that profits will be shared with the Borough on an equal basis, with the
maximum amount in one year of $600,000, but Providence will absorb losses. The Borough received $486,360
for gain on operations, an $113,628 increase from fiscal year 2001.
The 911 Service Fund was established to collect money in order to pay for installation and maintenance on an
automatic call out system for emergency services. The Borough receives seventy -five cents per phone line that
is billed within the vicinity of the City of Kodiak. The billing is done by the phone company and then remitted to
the Borough. The Borough, in turn, sends the money to the City of Kodiak for the 911 - service equipment that
has been installed at the police station. This system allows for location of the caller, even if the caller is unable
to speak.
The Kodiak Fisheries Research Center (KFRC) became operational in October 1998. The Center is home to
the National Oceanic and Atmospheric Administration, (NOAA), Alaska Department of Fish and Game, and the
xvii
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
'1
t University of Alaska — Fairbanks. The source of income for KFRC is lease payments. The major contributor in
rent is NOAA. The center was developed as a multi- agency research facility committed to the preservation of
the North Pacific marine ecosystem and resources. The Borough maintains the building, pays all expenses,
and manages the interpretive center in the building as a public display area.
FIDUCIARY OPERATIONS
' The Kodiak Island Borough handles all fiduciary activity regarding the collection of Public Employees
Retirement System (PERS) payments, property tax collected on behalf of the City of Kodiak, and payroll taxes,
with the same care and due diligence that we exercise with any of our funds. All monies due are withheld,
collected, accounted for, and remitted promptly.
' Periodically, the State of Alaska informs each participating entity of the PERS of changes in employee and
employer contribution rates. Amounts are budgeted, withheld, and remitted accordingly. Annually the State of
Alaska PERS revises the actuarial assumptions. When such occurrence creates a deficiency, that amount is
paid within the period of notification or when a subsequent budget is adopted.
The Borough administers property tax collections for all governmental entities within the Kodiak Island Borough.
For service areas within the Borough, the revenue is recognized in that area's particular fund. Property taxes
collected for the City of Kodiak are remitted monthly for the amount collected the previous month.
All other fiduciary collection activity (i.e., federal withholding, FICA, insurance, pension fund, etc.) is accounted
for and promptly remitted to the agency involved.
DEBT ADMINISTRATION
$3,680.000
1,030.000
9,445,000
1,365,000
1,095.000
101,247
52.083
Total $16,768330
State of Alaska Statutes and the Kodiak Island Borough Code do not establish a legal debt margin. The voters
of the Kodiak Island Borough ultimately determine the amount of debt that can be outstanding.
The Borough has an eight million - dollar revenue bond authorized but not issued. Currently it is shown as an
interfund receivable /payable between the Kodiak Fisheries Research Center and the Facilities Fund.
General Obligation, 1993
General Obligation, 1994
General Obligation, 1998
General Obligation, 2000 E
General Obligation, 2000 F
Moody's Investors Standard
Service and Poors Fitch's
Aaa AAA
Aaa AAA
AAA AAA
Aaa AAA
Aaa AAA
xviii
Summary of debt principal outstanding at fiscal year end was:
General Obligation, 1993
General Obligation. 1994
General Obligation, 1998
General Obligation, 2000 E
General Obligation, 2000 F
State of Alaska, ADEC Loans
Environmental Protection Agency Loan
$3,680.000
1,030.000
9,445,000
1,365,000
1,095.000
101,247
52.083
Total $16,768330
State of Alaska Statutes and the Kodiak Island Borough Code do not establish a legal debt margin. The voters
of the Kodiak Island Borough ultimately determine the amount of debt that can be outstanding.
The Borough has an eight million - dollar revenue bond authorized but not issued. Currently it is shown as an
interfund receivable /payable between the Kodiak Fisheries Research Center and the Facilities Fund.
General Obligation, 1993
General Obligation, 1994
General Obligation, 1998
General Obligation, 2000 E
General Obligation, 2000 F
Moody's Investors Standard
Service and Poors Fitch's
Aaa AAA
Aaa AAA
AAA AAA
Aaa AAA
Aaa AAA
xviii
As of June 30, 2002, net per capita bonded debt is $1,162. For comparison purposes, the following is the net
per capital bonded debt for the past ten years:
General Bonded Debt Per Capita
Last ten fiscal years
$1,800
$1,600
$1,400 -
$1,200 -
$1,000 -
$800 -
$600 -
$400 298
$2
$0
1993
1,560 1,515 1,502
1,393
1994 1995 1996 1997
1,381 1,341
1,198 1,236
1,162
6W L
1998 1999 2000 2001 2002
CASH MANAGEMENT
Effective cash management is essential to the long -term stability and profitability of any organization. Day -to-
day cash management is considered a priority within the Borough, and we utilize proper monitoring procedures
for timely receipt and deposit of all funds.
INVESTMENT POLICIES
The Borough Finance Director is the central treasurer for all Borough funds. This includes both the Borough
and School District. The Borough uses a cash pool concept in which all funds are self - balancing. Each fund is
a unique entity and has its own cash account, which, on occasion, may show a "book overdraft" while others
have an excess of cash. In this manner, the Borough is able to fully invest all idle funds without creating a
"bank overdraft ".
Deposits are made daily and all idle funds are invested on the following day. The Borough recognizes that
there is frequently some exposure to uninsured and u ncol lateral ized deposits. To offset this exposure the
Borough requires its local servicing bank to purchase investments as collateral to cover the cash amount in the
"sweep" account. The minimum amount of collateral required is $4,000,000. This collateral is purchased in the
Borough's name and the collateral must increase if the cash balance exceeds the $4,000,000. Great strides
have been made in minimizing this exposure through increased collateral and selection of banks and brokers
with additional insurance. A local servicing bank "sweeps" the total balances to another account on a daily
basis. At this time $10,960,000 of Kodiak Island Borough Ambac insured bonds collateralize this account. A
third -party bank, Deutsche Bank, holds this collateral.
All new investments are purchased on a delivery versus payment system. This means that when the Borough
purchases a new instrument, such as a Treasury bill or an agency note, our servicing bank pays for the
instrument when it is delivered to them. After delivery, the servicing bank will hold and account for all
investments. Management feels that this is the safest way of holding our investments.
The Borough's investment policy is far more restrictive than that of many governments. The operational
parameters are defined in Title 3, Chapter 4, of the Borough Code. Basically, it states that we invest only in
high -grade securities that are fully collateralized and /or insured. Further, a third -party bank, Deutsche Bank,
holds all investments and collateral.
xix
During the past year, the investments of the Borough have fluctuated between $28.8 and $39.1 million. Interest
rates for our fiscal year started at 3.71 percent to 7.00 percent in early July 2001. At year -end, investments
were earning from 1.91 percent to 7.00 percent for an average yield of 4.45 percent. We ended the year with
investment earnings for all funds in the amount of $ 1,578,413.
RISK MANAGEMENT
"Risk management" is a term used to describe those activities practiced by managers to minimize or control
exposure to potential losses. Mention the word "risk management" and most people think of insurance, which is
the traditional method used to manage risks. Insurance provides financial protection against accidental loss but
cannot prevent losses. However, by managing exposure, we can prevent unexpected losses.
The Kodiak Island Borough has increased risk management activities as a result of several factors, one being
1 the increased state and federal regulations related to this issue. We have a Safety Committee that meets
monthly and discusses the accident prevention program and develops loss prevention policies in an effort to
manage risk exposure. Several areas of concern are now addressed including hazardous material
management, blood borne pathogens, sexual harassment awareness, accident prevention, ergonomics, and
evaluation of work environments to prevent cumulative trauma. The Borough presents training to employees to
address these and other issues as part of the accident prevention program, an integral component of an
effective risk management program.
OTHER INFORMATION
INDEPENDENT AUDIT
The Borough Code requires an annual audit to be made of the books of account, financial records, and
transactions of all administrative departments of the Borough. We have complied with this requirement and the
auditors' opinion has been included in this report.
The Alaska Statutes require single audits and define these requirements in 2 AAC 45.010.
The Borough also complies with the "Federal Single Audit Act of 1984" as amended by the "Single Audit Act
Amendments of 1996 ", and the "Drug -Free Workplace Act of 1988."
AWARDS
GOVERNMENT FINANCE OFFICERS ASSOCIATION CERTIFICATE OF ACHIEVEMENT FOR
EXCELLENCE IN FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the Kodiak Island Borough for its comprehensive
annual financial report for the fiscal year ended June 30, 2001. The Certificate of Achievement is a prestigious
national award - recognizing conformance with the highest standards for preparation of state and local
government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and
efficiently organized comprehensive annual financial report, whose contents conform to program standards.
' Such a report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The Borough has received a Certificate of
1 Achievement for the last fourteen consecutive years (fiscal years ended 1988 - 2001). 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.
XX
GOVERNMENT FINANCE OFFICERS ASSOCIATION DISTINGUISHED BUDGET PRESENTATION AWARD I
The Government Finance Officers Association of the United States and Canada (GFOA) has presented a
Distinguished Budget Presentation Award to the Kodiak Island Borough for its annual budget for the last twelve
consecutive years (fiscal years beginning July 1, 1990 through July 1, 2001). The Borough has submitted its
annual budget for the fiscal year beginning July 1, 2002, and believes that it will also meet the criteria for this
award.
In order to receive this award, a government unit must publish a budget document that meets program criteria
as a policy document, as an operating guide, as a financial plan, and as a communications medium.
Acknowledgments
I wish to express my appreciation to all the members of the Finance Department for their efficient and dedicated
service during the past year. I wish to thank your office and the members of the Borough Assembly for their
interest in and support of the planning and conducting of the financial operations of the Borough in a
responsible and progressive manner.
Respectfully submitted,
KARLETON G. SHORT
DIRECTOR OF FINANCE
xxi
FINANCIAL SECTION
701 West Eighth Avenue
Suite 600
Anchorage, AK 99501
Independent Auditors' Report
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough:
We have audited the accompanying general - purpose financial statements of Kodiak Island Borough (the
Borough), Alaska, as of and for the year ended June 30, 2002, as listed in the table of contents. These
general - purpose financial statements are the responsibility of Kodiak Island Borough, Alaska's
management. Our responsibility is to express an opinion on these general - purpose financial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the 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. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general - purpose financial statements referred to above present fairly, in all material
respects, the financial position of the Kodiak Island Borough, Alaska, as of June 30, 2002, and the results
of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated September 27,
2002, on our consideration of Kodiak Island Borough's internal control over financial reporting and our
tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and should be read
in conjunction with this report in considering the results of our audit.
The combining and individual fund and 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 statements of Kodiak Island Borough, Alaska. Such information has been subjected to
the auditing procedures applied in our audit of the general - purpose financial statements and, in our opinion,
is fairly stated in all material respects when considered in relation to the general - purpose financial
statements taken as a whole.
' ,... KPMG LLB KPMG LLP a U.S. limited liability partnership, is
a member of KPMG Intemational, a Swiss association.
1
1
Ana
_
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
The statistical data on pages 100 through 113 are presented for purposes of additional analysis and is not a
required part of the general - purpose financial statements of the Kodiak Island Borough, Alaska. Such
information has not been subjected to the auditing procedures applied in our audit of the general - purpose
financial statements and, accordingly, we express no opinion on it.
Kl > mc' LrP
September 27, 2002
I
L
11 2
1
r'll
J
1
I1
GENERAL PURPOSE FINANCIAL STATEMENTS
The General Purpose Financial Statements include the basic
financial statements and notes to the financial statements which
are essential to the fair presentation of financial position and
results of operations and the cash flow of proprietary funds and
similar trust funds.
1
I
I
KODIAK ISLAND BOROUGH
Combined Balance Sheet – All Fund Types, Account Groups
and Discretely Presented Component Unit
June 30. 2002
(With comparative totals for 2001)
Assets and Other Debits
Assets:
Equity in central treasury
Temporary investments
Other cash and cash equivalents
Receivables:
Accounts and other receivables, net
State of Alaska
Federal Government
Property taxes, net of
allowance of $15,828
Land sales contracts, due
within one year
Due from other funds
Due from primary government
Inventories
Long -term interfund advances
Land sales contracts receivable, due
after one year
Fixed assets, net of accumulated
depreciation where applicable
Construction work -in- progress
Other debits:
Amount to be provided for claims
and judgments
Amount to be provided for capital leases
Amount available in debt service fund
Amount to be provided for retirement
of general long -term debt
Total
See accompanying notes to financial statements.
Governmental fund types
$ 7.324,672 $ 28,998.862 $ 1,364.152 $ 852,230
3 (Continued)
Special
Debt
Capital
General
Revenue
Service
Projects
$ 282,864 $
2,105,026 $
142,793 $
129,503
5,946.139
18,341,171
1.205,796
538,863
185,028
60,847
7,102
—
64.651
122.406
8.461
183.864
—
4,388
—
—
319,011
—
—
—
—
6.223
—
—
526,979
1.142,269
—
—
—
7,130,000
—
—
—
86,532
—
—
$ 7.324,672 $ 28,998.862 $ 1,364.152 $ 852,230
3 (Continued)
Exhibit i
4 (Continued)
Total
Proprietary
primary
Component
Totals
fund type
Account groups
government
unit
reporting entity
General
General long-
(memorandum
School
(memorandum only)
Enterprise
fixed assets
term debt
only)
district
2002
2001
$ 1,156,761 $
—
$ — $
3,816,947
$ — $
3,816,947 $
2,433,140
1,932,795
—
—
27,964,764
—
27.964.764
24,213.547
—
—
—
—
477.645
477,645
435,974
360,561
—
—
613,538
45,753
659,291
786,937
100,000
—
—
479.382
836.838
1,316.220
1,155.617
—
—
—
4,388
414,630
419,018
191,428
—
—
—
319,011
—
319,011
331,695
—
—
—
6,223
—
6,223
16,306
—
—
—
1.669,248
1,179.259
2.848.507
2.651,973
—
—
—
—
4,018,722
4,018,722
4,017,798
277,007
—
—
277.007
272,367
549.374
541,080
—
—
—
7,130,000
—
7,130,000
7,370,000
—
—
—
86,532
—
86,532
25,742
42,547,034
104,165,625
—
146,712,659
4,009,389
150,722,048
152,309,184
2.241,254
—
—
2,241.254
—
2.241,254
—
—
—
2,053,000
2,053,000
—
2,053,000
1,356,500
—
—
—
—
75,412
75.412
-
-
—
590.858
590,858
—
590,858
458,925
—
—
16,320,265
16,320,265
—
16,320,265
17,523,249
$ 48,615.412 $
104.165,625
$ 18.964.123 $
210.285.076
$ 11.330.015 $
221.615.091 $
215.819.095
4 (Continued)
KODIAK ISLAND BOROUGH
Combined Balance Sheet – All Fund Types, Account Groups
and Discretely Presented Component Unit
June 30, 2002
(With comparative totals for 2001)
Liabilities, Fund Equities,
and Other Credits
Liabilities:
Accounts payable
Retainages payable
Accrued compensation, annual leave,
payroll taxes, and related benefits
Other accrued liabilities
Customer deposits
Deferred revenues
Claims and judgments
Due to City of Kodiak
Due to component units
Due to other funds
Due to student organizations
Current portion of note payable
Current portion of capital lease obligations
Accrual for landfill closure
and postclosure costs
Note payable
Capital lease obligations
Long -term interfund borrowings
General obligation bonds payable
Environmental Protection Agency loan
Alaska Department of Environmental
Conservation loans
Total liabilities
Fund equities and other credits:
Contributions in aid of construction, net
Investment in general fixed assets
Contributed capital
Retained earnings
Fund balances:
Reserved:
Encumbrances
Fuel inventory
Long -term interfund borrowings
Quality school initiative/learning opportunities
Unreserved:
Designated for subsequent
year expenditures
Undesignated
Total fund equities and other credits
Total
See accompanying notes to financial statements.
Governmental fund types
595,305 177,770 — —
2.243,532 28,410,539 590,858 619,305
2,838,837 28,588,309 590,858 619,305
S 7,324,672 $ 28,998.862 $ 1,364,152 S 852,230
5 (Continued)
Special
Debt
Capital
General
Revenue
Service
Projects
$ 101,184 $
94,809 $
— $
20,528
—
—
—
3,705
83,736
1,847
—
—
4,800
625
—
—
268,193
94,985
—
—
9,200
—
—
—
4,018,722
—
—
-
-
218,287
773,294
208,692
4,485,835
410,553
773,294
232,925
595,305 177,770 — —
2.243,532 28,410,539 590,858 619,305
2,838,837 28,588,309 590,858 619,305
S 7,324,672 $ 28,998.862 $ 1,364,152 S 852,230
5 (Continued)
Exhibit 1
6 (Continued)
Total
Proprietary
primary
Component
Totals
fund type
Account groups
government
unit
reporting entity
General
General long-
(memorandum
School
(memorandum only)
Enterprise
fund assets
term debt
only)
district
2002
2001
$ 161,973
$ -
$ - $
378,494
$ 386,370 $
764,864 $
1,064,360
-
-
-
3,705
-
3,705
48,181
-
-
142,793
228,376
2,482,606
2,710,982
2521,272
147,086
-
-
147,086
-
147,086
338,451
-
-
-
5,425
-
5,425
525
103,745
-
-
466,923
111,217
578,140
195,039
-
-
2,053,000
2,053,000
46,000
2,099,000
1,396,500
-
-
-
9,200
-
9,200
22,022
-
-
-
4,018,722
-
4,018,722
4,017,798
468,975
-
-
1,669,248
1,179,259
2,848,507
2,651,973
-
-
-
-
397,201
397,201
338,868
669,967
-
-
669,967
-
669,967
629,656
294,439
-
-
294,439
-
294,439
277,720
2,292,901
-
-
2,292,901
-
2,292,901
2,122,151
1,241,254
-
-
1,241,254
-
1,241,254
1,901,494
502,867
-
-
502,867
75,412
578,279
797,306
7,130,000
-
-
7,130,000
-
7,130,000
7,370,000
-
-
16,615,000
16,615,000
-
16,615,000
17,690,000
-
-
52,083
52,083
-
52,083
72,919
-
-
101,247
101,247
-
101,247
105,272
13,013,207
-
18,964,123
37,879,937
4,678,065
42,558,002
43,561,507
29,292,524
-
-
29,292,524
-
29,292,524
30,340,822
-
104,165,625
-
104,165,625
4,009,389
108,175,014
105,444,036
5,382,203
-
-
5,382,203
-
5,382,203
5,382,203
927,478
-
-
927,478
-
927,478
609,267
-
-
-
-
400,218
400,218
2,303,641
-
-
-
-
227,269
227,269
226,629
-
-
-
-
-
-
7,370,000
-
-
-
-
2,559
2,559
-
-
-
-
773,075
982,510
1,755,585
985,954
-
-
-
31,864,234
1,030,005
32,894,239
19,595,036
35,602,205
104,165,625
-
172,405,139
6,651,950
179,057,089
172,257.588
$ 48,615,412
$ 104,165,625
$ 18,964,123 $
210,285.076
$ 11,330,015 $
221.615,091 $
215,819,095
6 (Continued)
KODIAK ISLAND BOROUGH
Combined Statement of Revenues.
Expenditures, Transfers, and Changes in Fund Balances
All Governmental Fund Types and Discretely Presented Component Unit
Year ended June 30. 2002
(With comparative totals for 2001)
See accompanying notes to financial statements
7
Special
Debt
Capital
General
revenue
-service
projects
Revenues:
Property taxes
$ 7.289,280 S
604.468
$
—
Intergovernmental:
State sources
1,638,441
675.137
—
315,499
Federal sources
1,758,799
17,101
—
—
Land sale proceeds
—
4,585.361
—
Severance taxes
728.064
—
—
—
Licenses, permits, fees, and other local revenues
236,758
167.870
—
660
Investments and property
294,675
1.003.102
31.884
33.539
In -kind services
—
—
—
—
Other
—
280
12.675
—
Total revenues
11.946,017
7,053.319
44,559
349,698
Expenditures:
Current:
Borough assembly
130.303
—
—
—
Borough manager
210,325
—
—
—
Borough clerk
265.108
—
—
—
Borough attorney
196.185
—
—
—
Finance department
425.306
—
—
—
Assessing department
179.816
—
—
—
Engineering/facilities department
103,878
—
—
—
Community development department
379.853
72.018
—
—
Building official
128,084
—
—
—
Economic development
68.653
—
—
—
General and administration
270,005
1,042,768
1,592
—
Emergency preparedness
2.574
—
—
—
School district support
588.590
—
—
—
Health and sanitation department
280.847
519.438
—
—
Education, culture and recreation
147,227
—
—
—
Management information systems
519.780
—
—
—
Capital outlay:
Schools
—
—
—
2.161,005
Service district maintenance
—
256.876
—
—
General
—
—
—
236,382
Debt service:
Principal
—
—
1.099.860
—
Interest
—
—
869.519
—
Total expenditures
3.896.534
1.891.100
1.970.971
2.397.387
Excess of revenue over (under) expenditures
8.049,483
5,162.219
(1,926.412)
(2.047,689)
Other financing (uses) sources:
Operating transfers in from component unit
—
—
849,694
—
Operating transfers in from other funds
200,000
691.729
1.208,651
20.000
Operating transfers in from primary government
—
—
—
—
Operating transfers out to component unit
(6.331,440)
—
—
—
Operating transfers out to other funds
(498,884)
(639.919)
—
(200.000)
Operating transfers out to primary government
—
—
—
Capital lease
—
—
—
—
Proceeds from issuance of long -term debt
—
—
—
Net other financing (uses) sources
(6,630,324)
51,810
2.058,345
(180,000)
Excess of revenues and other financing
sources over expenditures and other financing uses
1.419.159
5.214.029
131.933
(2.227.689)
Fund balances, at beginning of year
1,419.678
23.374,280
458.925
2,846.994
Adjustments to reserve for fuel inventory
—
—
—
—
Fund balances, at end of year
$ 2,838,837 $
28,588,309
$ 590,858
$ 619,305
See accompanying notes to financial statements
7
Exhibit 2
Total
primary
Component
government
unit
Totals — reporting
entity
(memorandum
School
(memorandum only)
only)
district
2002
2001
$ 7,893,748
S — $
7,893,748 $
7,859,612
2,629.077
17.348,690
19,977,767
19,369.239
1.775.900
4.902.132
6.678.032
5.390.000
4,585,361
—
4,585,361
4,112,128
728,064
—
728,064
854.233
405,288
620,877
1,026,165
881,043
1.363.200
—
1.363.200
1.909,358
—
774,854
774,854
683.261
12.955
—
12.955
12.849
19,393.593
23.646,553
43,040,146
41,071,723
130,303
—
130,303
137,000
210,325
—
210.325
159.275
265,108
—
265,108
263,191
196.185
—
196.185
435.337
425,306
—
425.306
389,583
179,816
—
179.816
288.958
103,878
—
103,878
85,310
451.871
—
451.871
443.731
128,084
—
128.084
129,908
68.653
—
68.653
38.000
1,314,365
—
1,314.365
1,475,523
2.574
—
2.574
3.002
588,590
28,982,494
29,571,084
26,602,424
800.285
—
800,285
686.810
147,227
—
147,227
148,351
519.780
—
519.780
293.891
2,161,005
—
2,161.005
671,985
256,876
—
256.876
14,306
236,382
—
236.382
624,788
1,099,860
—
1,099.860
2,015,834
869,519
—
869.519
745.493
10.155.992
28.982.494
39.138.486
35.652.700
9,237.601
(5,335.941)
3.901,660
5,419.023
849,694
—
849,694
1,634.092
2.120.380
121.550
2,241.930
2.336.899
—
6,331,440
6,331,440
5,966.440
(6.331.440)
—
(6.331,440)
(5.966.440)
(1,338.803)
(121,550)
(1,460,353)
(1,610,544)
—
(849.694)
(849,694)
(1.634.092)
—
128,576
128,576
-
-
—
—
2.677.871
(4,700.169)
5.610,322
910.153
3,404,226
4.537.432
274.381
4,811.813
8.823.249
28.099,877
2,381.383
30,481,260
21.645,942
—
(13.203)
(13203)
12.069
S 32,637,309
S 2.642,561 $
35,279.870 S
30,481.260
8
KODIAK ISLAND BOROUGH
Combined Statement of Revenues, Expenditures, Transfers
and Changes in Fund Balances
Budget and Actual
General Fund, Special Revenue Fund, and Debt Service Fund
Year ended June 30, 2002
Revenues:
Property taxes
Intergovernmental:
State sources
Federal sources
Land sale proceeds
Severance taxes
licenses, permits, fees, and other local revenues
Other
Investments and property
Total revenues
Expenditures:
Current:
Borough assembly
Borough mayor
Borough clerk
Borough attorney
Finance department
Assessing department
Engineering(facilities department
Community development department
Building official
Economic development
General and administration
Emergency preparedness
School district support
Health and sanitation department
Education, culture and recreation
Management information systems
Service district maintenance
Debt service:
Principal
Interest
Total expenditures
Excess of revenue over (under) expenditures
Other financing (uses) sources:
Operating transfers in from component unit
Operating transfers in from other funds
Operating transfers to component unit
Operating transfers out to other funds
Net other financing (uses) sources
Excess of revenues and other financing sources
over (under) expenditures and other financing uses
Fund balances, at beginning of year
Fund balances, at end of the year
See accompanying notes to financial statements.
General fund
Variance -
favorable
Budget Actual (unfavorable)
$ 7,294,260 $
7,289,280 $
j4,980)
1,392,660
1,638,441
245,781
900,200
1,758,799
858.599
890,000
728,064
(161.936)
126,670
236,758
110,088
272,200
294,675
22,475
10.875,990
11,946.017
1.070,027
161,390
130,303
31,087
182,980
210,325
(27,345)
285,380
265,108
20,272
259,250
196,185
63,065
455,910
425,306
30,604
275,690
179,816
95,874
126,330
103,878
22,452
380,090
379,853
237
110,510
128,084
(17,574)
81,160
68,653
12,507
286,180
270,005
16,175
5,500
2,574
2.926
602,000
588,590
13,410
286,920
280,847
6,073
155,780
147,227
8,553
615,630
519,780
95,850
4,270,700
3,896,534
374,166
6.605,290
8,049,483
1,444,193
200,000
200,000
-
(6,331.440)
(6,331,440)
-
(473,850)
(498,884)
(25,034)
(6,605,290)
(6,630,324)
(25,034)
$ -
1,419,159 $
1,419,159
$ 2,838,837
9
Exhibit 3
10
Special revenue funds
Debt service funds
Variance-
Variance-
favorable
favorable
Budget
Actual
(unfavorable)
Budget
Actual
(unfavorable)
$ 594,200
$ 604,468 $
10,268 $
-
$ - $
-
695,669
675,137
(20,532)
-
-
-
66,992
17,101
(49,891)
-
-
-
4,014,500
4,585,361
570,861
-
-
-
170,220
167,870
(2,350)
-
-
-
-
280
280
-
12,675
12,675
1,730,850
1,003,102
(727,748)
1,000
31,884
30,884
7,272.431
7.053.319
(219.112)
1.000
44,559
43.559
78,140
72.018
6,122
-
-
-
6,104,057
1,042,768
5,061,289
28,700
1,592
27,108
540,049
519,438
20.611
-
-
-
254,735
256,876
(2,141)
-
-
-
-
-
-
1,099,864
1,099,860
4
-
-
-
881.646
869,519
12,127
6,976,981
1,891,100
5,085,881
2,010,210
1,970,971
39,239
295,450
5,162,219
4.866.769
(2,009.210)
(1,926,412)
82,798
-
-
-
829,370
849,694
20,324
153.500
691.729
538,229
1,179,840
1,208.651
28.811
(617,750)
(639,919)
(22,169)
-
-
-
(464,250)
51,810
516,060
2,009,210
2,058,345
49,135
$ (168,800)
5,214,029 $
5,382,829 $
-
131,933 $
131,933
23.374.280
458,925
$ 28,588,309
$ 590,858
10
Exhibit 4
KODIAK ISLAND BOROUGH
Combined Statement of Revenues, Expenses, Transfers,
and Changes in Retained Earnings
Proprietary Fund Types
Year ended June 30, 2002
(With comparative totals for 2001)
See accompanying notes to financial statements.
Enterprise
2002
2001
Operating revenues:
Solid waste collection
$ 1,740,766 $
1,718,904
Solid waste disposal
1,094,484
889,885
State sources - revenue sharing
39,617
39,907
Charges for services/customer charges
69,520
69,078
Lease proceeds
720,000
2,204,927
Other
2,071,730
487,698
5,736,117
5,410,399
Operating expenses:
Personnel services
576,155
533,442
Solid waste collection
1,276,583
1,250,607
Refuse disposal
284,554
297,992
Contracted services
311,634
326,220
Repairs and maintenance
336,472
377,610
Landfill closure and postclosure costs
170,750
57,115
Depreciation
2,188,671
2,018,632
Support goods and services
44
802
General and administration
195,734
177,654
Miscellaneous
60,533
51,954
Telephone services
72,952
30,000
Recycling services
70,000
67,680
Contributions
7,315
2,844
5,551,397
5,192,552
Operating income
184,720
217,847
Other income (expenses):
Intergovernmental revenue
-
69,838
Loss on disposal of fixed assets
-
(226,761)
Investment income
89,270
76,673
Interest expense
(222,500)
(171,689)
Net loss from continuing operations
51,490
(34,092)
Transfer to other funds -
Operating transfers out to other funds
(781,577)
(726,355)
Net operating transfers
(781,577)
(726,355)
Amortization of contributions in aid of construction
1,048,298
1,048,296
Increase in retained earnings
318,211
287,849
Retained earnings, at beginning of year
609,267
321,418
Retained earnings, at end of year
$ 927,478 $
609,267
See accompanying notes to financial statements.
Exhibit 5
KODIAK ISLAND BOROUGH
Combined Statement of Cash Flows
Proprietary Fund Types
Year ended June 30, 2002
(With comparative totals for 2001)
See accompanying notes to financial statements.
12
Enterprise
2002
2001
Operating income $
184,720 $
217,847
Adjustments to reconcile operating income to net cash provided by
operating activities:
Depreciation
2,188,671
2,018,632
Changes in assets and liabilities that provided (used) cash:
Accounts receivable:
Customers
(103,431)
266,754
Due to /from other funds
(747,865)
814,484
Accounts payable
(22,833)
(113,086)
Deferred revenues
86,296
—
Accrual for landfill closure and postclosure costs
170,750
55,393
Other accrued liabilities
(7,617)
16,946
Total adjustments
1.563.971
3,059,123
Net cash provided by operating activities
1,748,691
3,276,970
Cash flows from noncapital and related financing activities:
Operating transfers out to other funds
(781,577)
(726.355)
Net cash used for noncapital financing activities
(781,577)
(726,355)
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets
(111,811)
(491,697)
Interest paid on notes payable, capital leases, and interfund
borrowing
(118,556)
(171,689)
Proceeds from issuance of long -term interfund borrowing
(225,000)
(210,000)
Proceeds from issuance of notes payable
9,450
299,686
Principal payments made on notes payable
(629,379)
(592,016)
Principal payments made on capital lease
(277,720)
(261,951)
Net cash used for capital and related financing activities
(1,353,016)
(1,427,667)
Cash flows from investing activities:
Change in assets whose use is limited:
Deductions from (additions to) restricted cash
Interest and dividends on investments
78,536
85,637
Net increase (decrease) in investments
1,142,947
(1,220,596)
Net cash provided by (used for) investing activities
1,221,483
(1,134,959)
Net change in cash and cash equivalents
835,581
(12,011)
Cash and equivalents, at beginning of year
321,180
333,191
Cash and equivalents, at the end of year $
1,156,761 $
321,180
Noncash capital and related financing activities:
Loss on disposal of fixed assets $
— $
226,761
See accompanying notes to financial statements.
12
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
(1) Summary of Significant Accounting Policies
(a) Reporting Entity
The Kodiak Island Borough (the Borough), Alaska, was organized to perform the municipal duties
allowed by Alaska Statutes and as directed by its residents. As required by generally accepted
accounting principles, these financial statements present the government and its component unit, an
entity for which the government is considered to be financially accountable. The discretely presented
component unit is reported in a separate column in the combined financial statements to emphasize it
is legally separate from the government. The Borough reviewed its relationship with other
organizations and determined that the following organization is a component unit.
Kodiak Island Borough School District
The Borough has delegated the operating responsibility for public education to the Kodiak Island
Borough School District (the School District). In accordance with statutes, the Borough retains
ownership of the education related fixed assets and incurs the debt, if necessary, to finance the
acquisition and construction of school facilities. The Borough Assembly approves the total annual
budget of the School District and may, during the year, increase or decrease the total appropriation.
Complete financial statements for the component unit may be obtained at the entity's administrative
offices for the Kodiak Island Borough School District.
Kodiak Island Borough School District
722 Mill Bay Road
Kodiak, Alaska 99615
Total columns on the combined statements are captioned "memorandum only" to indicate that they
are presented only to facilitate financial analysis. Data in these columns do not present financial
position, results of operations, or cash flows in conformity with accounting principles generally
accepted in the United States of America, nor are such data comparable to a consolidation. Interfund
eliminations have not been made in the aggregation of these data.
Reclassification
Certain 2001 balances have been reclassified to conform to the current year presentation.
. (b) Measurement Focus, Basis of Accounting, and Basis of Presentation
The accounts of the Borough are organized and operated on the basis of funds and account groups. A
1 fund is an independent fiscal and accounting entity with a self - balancing set of accounts. Fund
accounting segregates funds according to their intended purpose and is used to aid management in
demonstrating compliance with finance- related legal and contractual provisions. The minimum
number of funds is maintained consistent with legal and managerial requirements. Account groups
are a reporting device to account for certain assets and liabilities of the governmental funds not
recorded directly in those funds.
11 13 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
The Borough has the following fund types and account groups:
Governmental funds are used to account for the Borough's general government activities.
Governmental fund types use the flow of current financial resources measurement focus and the
modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are
recognized when susceptible to accrual (i.e., when measurable and available). "Measurable" means
the amount of the transaction can be determined and "available" means collectible within the current
period or soon enough thereafter to pay liabilities of the current period. The Borough considers all
revenues available if they are collected within 60 days after year end. Expenditures are recorded
when the related fund liability is incurred, except for unmatured interest on general long -term debt
that is recognized when due, and certain compensated absences and claims and judgments that are
recognized when the obligations are expected to be liquidated with expendable available financial
resources.
Property taxes, franchise taxes, severance taxes, licenses, interest, and special assessments are
susceptible to accrual. Other receipts and taxes become measurable and available when cash is
received by the Borough and are recognized as revenue at that time.
Entitlements and shared revenues are recorded at the time of receipt, or earlier if the susceptible to
accrual criteria are met. Expenditure driven grants are recognized as revenue when the qualifying
expenditures have been incurred and all other grant requirements have been met.
Governmental funds include the following fund types:
The general fund is the Borough's primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
Special revenue funds account for revenue sources that are legally restricted to expenditure for
specific purposes, not including expendable trusts or major capital projects.
Debt service funds account for the servicing of general long -term debt not being financed by
proprietary or nonexpendable trust funds.
Capital projects funds account for the acquisition of fixed assets or construction of major capital
projects not being financed by proprietary or nonexpendable trust funds.
Proprietary funds are accounted for on the flow of economic resources measurement focus and use
the accrual basis of accounting. Under this method, revenues are recorded when earned, and
expenses are recorded at the time liabilities are incurred. The Borough has elected to follow all
applicable Governmental Accounting Standards Board (GASB) pronouncements and all Financial
Accounting Standards Board (FASB) pronouncements issued on or before November 30, 1989 that
are not in conflict with GASB pronouncements.
Proprietary funds include the following fund type:
Enterprise funds are used to account for those operations that are financed and operated in a
manner similar to private business or where the Borough Assembly has decided that the
14 (Continued) I
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
determination of revenues earned, costs incurred and/or net income is necessary for management
accountability.
The account groups include the following:
The general fixed assets account group is used to account for fixed assets not accounted for in
proprietary or trust funds.
The general long -term debt account group is used to account for general long -term debt and
certain other liabilities that are not specific liabilities of proprietary or trust funds.
Summarized below are the major sources of revenue and the applicable recognition policies:
Property Taxes: Property taxes are based on the assessed value of taxable property as of January 1.
Pursuant to Alaska Statute 29.45.240, the Borough establishes the mill rate on or before June 15th.
Tax bills are then mailed on or before July 1st.
Taxes are due when billed and generally become delinquent on or after October 15th. The Borough
code also provides for split payments. If a taxpayer avails himself of this provision, one -half must be
paid on or before August 15th and the remainder becomes due on or before November 15th (in lieu
of October 15th). Borough property tax revenues are recognized in the fiscal year in which they
become measurable and available, which is generally the year following the year the tax bills are
mailed.
All taxes are delinquent on November 16th, and a tax foreclosure process may commence as outlined
in Alaska Statutes Title 29. Briefly, this entails the petition for Judgment of Foreclosure signed by
the District Court Judge and the publication of all delinquent taxes in the local newspaper for four
consecutive weeks.
Real property tax liens are enforced by one general foreclosure proceeding against the delinquent
properties.
Severance Taxes: Severance taxes are based on the amount and value of natural resources severed
from the environment. Types of resources taxed include seafood, gravel and mineral resources, and
timber. Severance tax returns are sent to appropriate companies (as determined by the Borough
' Assessor) and are returned to the Borough Finance Department. The returns are filed quarterly, and
are due by the end of the month following the quarter's end. Borough severance tax revenues are
recognized in the fiscal year in which they become measurable and available.
' Intergovernmental Revenue: State - shared revenues, safe communities, State - education related
entitlement programs and State - levied taxes, the proceeds of which are distributed to local
governments, are recorded in the fiscal year to which they relate, including accrual at year end if
' final payments due are measurable and received within approximately two months after year end.
State of Alaska and Federal government cost reimbursable grants and contracts are recorded to the
' extent of allowable expenditures in the period in which the expenditures were incurred.
11 15 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
Revenue from Investments and Property: Amounts earned on investment of available cash balances
and the rental of building facilities are recorded in the period to which they relate, including accrual
at year end of the balance due, and unrealized gains and losses on investments held at fiscal year end.
Land Sales Proceeds and Other Local Revenues: Amounts received pursuant to land sale contracts
are recorded on the cash basis. Noncurrent portions of long -term receivables due to Governmental
Fund Types are reported on the associated balance sheets, in spite of their spending measurement
focus. Special reporting treatments are used to indicate, however, that they should not be considered
available spendable resources since they do not represent net current assets. Recognition of
Governmental Fund Type revenues represented by noncurrent receivables is deferred until they are
paid.
Other local revenues are recorded on a basis consistent with their nature in relation to measurement
and availability standards.
(c) Budgets and Budgetary Accounting
Borough
The Borough follows these procedures in establishing the budgetary data reflected in the combined
financial statements:
• The Borough Manager must submit to the Borough Assembly by April 30 a proposed
operating budget for the fiscal year commencing the following July 1. The operating budget
includes proposed expenditures and the means of financing them.
• Public hearings are conducted by the Borough Assembly to obtain citizen comments.
• By June 10, the budget is legally enacted through passage of an ordinance by Borough
Assembly action. If the Borough Assembly fails to pass an ordinance, the budget submitted by
the Borough Manager becomes the adopted budget.
• Amendments to the budget can occur anytime during the fiscal year through the Borough
Assembly or administrative action. Generally, the following actions are required at the level of
the particular change:
All new appropriations are authorized by an appropriation ordinance that amends the
annual budget ordinance.
A resolution of the Borough Assembly is required to move (appropriate) amounts
between departments and projects.
The administration is authorized and directed by the Borough Assembly to effect the
necessary line item changes within the limits established by Items (1) and (2) above by
project or department to properly monitor, account, and report receipts and expenditures.
• Expenditures may not legally exceed appropriations at the following levels: Capital Projects
Funds — project level, all other funds — department level. I
16 (Continued) I
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
• All funds, except Capital Projects Funds, are budgeted on an annual basis encompassing a
fiscal year. Budgets of Capital Projects Funds generally encompass the period from start-up to
project completion, which is generally greater than one year.
• Appropriations lapse at year end to the extent that they have not been expended for all funds,
except Capital Projects Funds, which lapse at project completion. -
• Budgets adopted by the Borough Assembly are in accordance with accounting principles
generally accepted in the United States of America.
• Additional appropriations for certain funds were enacted during the year. The majority of these
appropriations reflect increases and decreases in actual grant awards. Supplemental
appropriations amounted to approximately $257,000 for the general fund, $(27,000) for the
special revenues funds, and $20,000 for the debt service funds.
School District
Annual budgets are adopted by the School Board for all revenues, expenditures, and interfund
transfers. Budgets are prepared and presented on the modified accrual basis of accounting. Pursuant
to Alaska Statutes, the adopted budget is submitted to the Borough Assembly for review and
approval. The Borough Assembly is required by ordinance to approve the School District budget in
total only and appropriate the necessary resources no later than April 30 of the current fiscal year.
The School Board retains line item authority once the annual local appropriation is set by the
Borough Assembly.
(d) Assets, Liabilities, and Fund Equity
Interfund Transactions
Transactions that would be treated as revenues, expenditures, or expenses, if they involved
organizations external to the Borough, are similarly treated if they occur between the fund types.
Reimbursements from one fund to another are treated as expenditures or expenses of the reimbursing
fund and a reduction of the expenditures or expenses of the reimbursed fund. Transfers from funds
receiving revenues to funds, through which the resources are to be expended, and operating loss
subsidies are classified as operating transfers. Nonrecurring or nonroutine transfers of equity
between funds are recorded as equity transfers. Long -term interfund transfers of funds are accounted
for as long -term interfund advances/borrowings. See note 7 for additional disclosure.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the
expenditure of moneys, are recorded in order to reserve that portion of the applicable appropriation,
is employed as an extension of formal budgetary integration in the General Fund, Special Revenue
Funds and Capital Projects Funds. Encumbrances outstanding at year end are reported as
reservations of fund balances since they do not constitute expenditures or liabilities. It is the
Borough's policy to void all open purchase orders at year end that are not in the Capital Projects
funds.
17 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
Inventories
Expendable operating supplies of the Borough are accounted for using the purchase method, and at
June 30, 2002 there are no significant amounts of such inventories on hand. The Hospital Enterprise
Fund also has at June 30, 2002, amounts of inventory assigned to Providence as of April 21, 1997
which, by the terms of the lease agreement for the hospital facilities (see note 17), are required to be
returned to the Borough at the termination of the lease in at least equal value.
Retirement Plans
All full -time employees of the Borough and School District participate in either the Alaska Public
Employees' Retirement System or the Alaska Teachers' Retirement System. The Borough and
School District accrue pension expense that includes current costs and amortization of prior service
costs. The policy is to fund pension costs accrued.
Annual Leave
The Borough records its liability for accrued annual leave in the Governmental Fund Types for the
amounts estimated to be liquidated with current available resources.
The commitment for accrued annual leave not included in the Governmental Fund Types is recorded
in the General Long -Term Debt Account Group.
All funds record annual vacation leave as earned.
(e) Cash Flows
All highly liquid investments, excluding restricted assets, with original maturities of three months or
less are considered cash equivalents for purposes of the statement of cash flows.
(fl Use of Estimates
Preparation of financial statements in accordance with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
amounts reported in these financial statements. Actual results may differ from the estimates.
Significant estimates include the allowance for doubtful accounts, the useful lives of assets and
related accumulated depreciation, accrued landfill closure and post - closure care costs.
(g) New Accounting and Reporting Standards
In June 1999, Statement No. 34 of the Governmental Accounting Standards Board, Basic Financial
Statements — and Management's Discussion and Analysis —for State and Local Governments, was
issued. This statement establishes new financial reporting requirements that will result in greater
accountability by state and local governments by providing more useful information to a wider range
of users. This statement also requires state and local governments to present a government wide set
of financial statements prepared on the accrual basis and to record and to depreciate capital assets,
including infrastructure assets. The impact of this new standard has not been fully determined,
however, the change will likely result in a significant increase in equity as a result of recording all
18 (Continued) I
KODIAK ISLAND BOROUGH
June 30, 2002
capital assets, including infrastructure assets. The Borough adopted this statement for the fiscal year
beginning July 1, 2002.
(2) Cash and Temporary Investments
Cash balances of most Borough funds are pooled in a central treasury. Each fund type's portion of this pool
is displayed on the combined balance sheet as "Equity in central treasury." In addition, investments are
separately held by several of the Borough's funds. Investments are carried at fair value, as determined by
quoted market prices.
At June 30, 2002, the carrying amount of the Borough and its Component Unit deposits was $3,816,197
and the corresponding bank balance was $4,054,878. The Federal Deposit Insurance Corporation insures
$100,000 of the Borough's bank balance. Government and Agency Obligations and General Obligation
Bonds of a Municipality collateralize the remaining $3,954,878. Collateral, in the amount of $10,960,000,
is held by Deutsche Bank, the pledging financial institution's agent, in the Borough's name.
Investments: Statutes authorize the Borough to invest in obligations of the United States, the State of
Alaska and its political subdivisions, savings accounts, certificates of deposit, banker's acceptances,
repurchase agreements, and such other legal security instruments. The Borough Code requires all
investments to be collateralized and/or insured.
Notes to Financial Statements
Investments are categorized as follows to give an indication of the level of risk assumed: Category 1
includes investments that are insured, or registered or for which the securities are held by the Borough or
its agent in the Borough's name; category 2 includes uninsured and unregistered investments for which the
securities are held by the counter party's trust department or agent in the Borough's name; category 3
includes uninsured and unregistered investments for which the securities are held by the counter party, or
by its trust department or agent but not in the Borough's name. The carrying amount of temporary
investments approximates fair value. At June 30, 2002, the Borough's investment balances were
categorized as follows:
Investments – categorized:
U.S. Government Securities
Category Carrying
1 2 3 amount
$ 17,064,800 $ — $
$ 17,064,800
Investments – not categorized:
Alaska Municipal League
Investment Pool
Total investments
10,899,964
27.964,764
' The Alaska Municipal League Investment Pool (AMLIP) is considered to be an external investment pool
as defined by GASB Statement No. 31. AMLIP is not SEC - registered. Alaska Statute 37.23 establishes
regulatory oversight of the pool. The law sets forth numerous requirements regarding authorized
investments and reporting. The pool is incorporated in the State of Alaska as a nonprofit corporation and
reports to its Board of Directors. Alaska Statute 37.23.050 requires the retention of an investment manager.
1 19 (Continued)
1
KODIAK ISLAND BOROUGH '
Notes to Financial Statements
June 30, 2002 '
The manager is required to produce monthly disclosure statements to the pool. The pool has also retained
an investment advisor to ensure compliance with investment policies. All participation in the pool is
voluntary. The pool must maintain a dollar - weighted average maturity of 90 days or less, and only
purchase instruments having remaining maturities of 397 days or less. On a monthly basis, the investments
in the pool are reviewed for fair value by an independent pricing service. As of June 30, 2002 the fair value
of the investment in the pool approximates the fair value of the pool shares.
The above bank deposits of $3,816,197, investments of $27,964,764 plus cash on hand of $750 totaling
$31,781,711 are reported under the following captions in the combined financial statements:
Equity in central treasury cash $ 3,816,947
Temporary investments 27,964,764
Total deposits and investments $ 31,781,711
The Borough reports investments at fair value in the balance sheet, and reports the changes in the fair value
of investments as revenue in the operating statement.
(3) Annual Appropriation to the School District
An annual appropriation is made to the School District in order to provide the School District with total
resources in a fiscal year equal in amount to budgeted expenditures.
In addition to the annual appropriation, the Borough provides the School District, without charge, general
liability and property insurance, data processing services, the annual independent audit, mental health
services, and grounds maintenance services. These are reflected as in -kind services in the financial
statements of the School District.
(4) Retirement Commitments
The School District, a component unit of the Borough, participates in the Alaska State Teachers'
Retirement System (TRS), a cost - sharing, multiple - employer pension plan that covers the School District's
certificated employees. The Alaska Public Employees' Retirement System (PERS), covers most of the
employees not covered by TRS and all Borough employees. Each plan issues a publicly available financial
report that includes financial statements and required supplementary information. Those reports may be
obtained from the State of Alaska.
State of Alaska
Department of Administration
Division of Retirement Benefits
P.O. Box 11 -0203
Juneau, Alaska 99811-0203
(a) PERS
Plan Description: All regular employees of the Borough who work more than fifteen hours per week
participate in PERS. PERS is an agent multiple - employer, statewide defined benefit plan,
administered by the State of Alaska. Benefit and contribution provisions are established by
Chapter 35 of Alaska Statute Title 39, and may be amended only by state legislature. Employees
20 (Continued) I
U
1
I�
1
t
1
r
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
hired prior to July 1, 1986 with five or more years of credited service are entitled to annual pension
benefits beginning at normal retirement age 55 or early retirement age 50. For employees hired after
June 30, 1986, the normal and early retirement ages are 60 and 55, respectively. The normal pension
benefit is equal to 2% of the member's three highest average monthly compensation for the first ten
years of service, 2 -1/4% for the second ten years of service and 2 -1/2% for all remaining years of
service. All service earned prior to July 1, 1986 will be calculated using the 2% multiplier.
Employees with 30 or more years of credited service (20 years for peace officers and firefighters)
may retire at any age and receive a normal benefit. The system also provides death and disability
benefits and postemployment healthcare benefits.
Funding Policy: Under State law, covered employees are required to contribute 6.75% of their
annual covered salary and the Borough is required to contribute an actuarially determined rate – the
current rate is 0.15% of annual covered payroll.
Annual Pension Cost: For the year ended June 30, 2002, the Borough's annual pension cost was
$61,962 for PERS, which was equal to the required and actual contribution. The actuarial required
contribution was computed as part of an actuarial valuation as of June 30, 2001. Significant actuarial
assumptions used in the valuation include: (a) a rate of return on the investment of present and future
assets of 8.25% per year compounded annually and (b) projected salary increases of 5.5% a year for
the first five years of employment and 4.5% per year thereafter, with distinction made between
amounts for inflation (4.0 %), merit for the first five years (1.0 %), and productivity (0.5 %). The
actuarial value of PERS assets was determined using techniques that smooth the effects of short-term
volatility in the fair value of investments over a five year period. The contribution rate for normal
cost is determined using the projected unit credit actuarial funding method. The excess of assets over
the actuarial accrued liability is amortized over a rolling 25 years, which is an open amortization
period. The percentage of pay method is used for amortization purposes.
Three -year trend information for PERS
Year ended
Annual
pension cost
(APC)
Percentage of
APC
contributed
Net pension
obligation
6/30/2000 $ 105,205 100% $ —
6/30/2001 69,805 100% —
6/30/2002 61,962 100% —
Postemployment Healthcare Benefits: Postemployment healthcare benefits are provided without cost
to all employees first hired before July 1, 1986, and employees who are disabled or age sixty -five or
older, regardless of initial hire dates. Employees first hired after June 30, 1986, with five years of
credited service (or ten years of credited service for those first hired after July 1, 1996) may receive
postemployment healthcare benefits prior to age sixty by paying the full monthly premium, and by
paying half of the monthly premium if they are between the ages of sixty and sixty -five.
The actuarially required and actual contributions for postemployment healthcare benefits for the year
ended June 30, 2002 was $18,508. The amount of net assets available for postemployment healthcare
21 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
benefits, the actuarial accrued liability, and funded excess are $4,818,000, $4,221,000, and $597,000,
respectively.
(b) Component Unit Retirement Commitments
The following is a summary of selected information on the component unit's retirement
commitments. Complete pension disclosures are presented in the component unit's financial
statements.
School District participation in PERS, a defined benefit agent multiple- employer plan, is separate
from the Borough's participation. Benefits are the same as described for the Borough's participation.
For the years ended June 30, 2002, 2001, and 2000, the School District's annual pension and
postemployment healthcare cost was $379,332, $323,991, and $271,733 and equal to the required
and actual contributions.
TRS is a cost - sharing, multiple - employer defined benefit cost sharing plan. Benefit and contribution
provisions are established by Chapter 25 of Alaska Statute Title 14, and may be amended only by the
state legislature. Participation is compulsory for certified personnel. Employees hired prior to July 1,
1990 with eight years or more of credited service are entitled to annual pension benefits beginning at
normal retirement age 55 equal to 2% of their highest three -year average annual compensation for
each year of service. The Plan permits early retirement at age 50. For employees hired after June 30,
1990, the normal and early retirement ages are 60 and 55, respectively. Employees may elect to
receive their pension benefits in the form of a joint or survivor annuity. Effective January 1, 1987, a
married member who retires must receive his or her benefit in the form of a joint and survivor
annuity unless the member's spouse consents to another form of benefit. Minimum benefits for
employees eligible for retirement are $25 per month for each year of credited service. In addition,
major medical benefits are provided. TRS also provides death and disability benefits.
For the years ended June 30, 2002, 2001, and 2000, the School District's annual pension cost was
$1,353,768, $1,345,263, and $1,391,110, which was equal to the required and actual contribution.
(c) Required Supplementary Information
Schedule of Funding Progress for PERS
(Dollar amounts in thousands for the primary government only)
22 (Continued) I
Funding
Actuarial
excess as a
Actuarial
accrued
Funding
percentage
Actuarial
value of
liability
Excess
Funded
Covered
of covered
valuation
assets
(AAL)
(FE)
ratio
payroll
payroll
date
(a)
(b)
(a -b)
(a/b)
(c)
((a -b) /c)
6/30/1998
$ 9,506 $
8,473 $
1,033
112% $
2,054
50.3%
6/30/1999
9,886
8,535
1,351
116%
1,864
72.5%
6/30/2001
11,377
9,967
1,410
114%
1,692
83.3%
22 (Continued) I
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
(5) Fixed Assets
A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 2002
follows:
July 1, 2001 Additions
Government:
Land
Buildings
Improvements other
than buildings
Machinery and equipment
Construction
work -in- process
$ 5,362,188 $
— $
88,783,292
2,768,667
3,700,998
41,767
1,117,298
1,109,825
2,357,374
2,264,650
$ 101,321,150 $
6,184,909 $
Deductions
June 30, 2002
31,000
$ 5.331,188
1,111,900
90.440,059
12,020
3,730.745
321,246
1,905,877
1,864,268
2.757,756
3,340,434 $ 104,165,625
Assets in the General Fixed Assets Account Group are not depreciated.
The following is a summary of Proprietary Fund fixed assets at June 30, 2002:
Enterprise
funds
Unclassified utility plant in service $ 2,200,347
Land and improvements 1,423,044
Building and improvements 43,971,443
Equipment 6,896,555
Construction work -in process 2,241,254
56,732,643
Less accumulated depreciation (11,893,461)
Net fixed assets $ 44,839,182
Depreciation lives for Proprietary Fund fixed assets are as follows:
Building and improvements 15 -20 years
Equipment 5 -20 years
An expenditure qualifies for capitalization as a fixed asset if the total cost is $5,000 or more, the asset will
last longer than one year, and the asset is not consumable. Improvements to an existing asset that increase
the life or value of that asset also qualify for capitalization, and are added to the carrying amount of the
original asset. All fixed assets are depreciated over the estimated remaining useful life of the asset on a
straight -line basis. The Borough does not capitalize either infrastructure fixed assets or improvement to
such.
23 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
(6) Long Term Debt
The following is a summary of long -term debt for the year ended Jute 30, 2002:
Interest
Principal payments
Authorized
Type of debt Rates Dates Issue date Maturity dates
Dates
Amount
Fiscal year
Amount
Environmental protection agency
asbestos abatement loan 0.0% • 620/1985 12/312004
12/312002 $
10,417
$
06130 and 12/31
2003 thru 2004
41,667
52,083
1985
375.000
General obligation
bonds -1993 Series 3.90 -7.OD% 8/15 -2/15 11115/1993 2/152006
-
2/152003
860,000
2/15/1904
900,000
2/152005
940.000
2/152006
980.000
3,660.000
1994
9,215,000
General obligation
bonds -1994 Series 5.40 -5.50% 1/152007 11/15/1993 21152014
2/152007
1,030,00D
—
1.030.000
1994
9.985.000
General obligation
bonds -1998 Series 3.25- 4.30% 8/15 -2115 1222 /1998 2/15/2014
2/152003
50,000
2/15/1904
55.000
2/152005
55,000
2/15/2006
60,000
2/152007
60,000
2/152008
1,150,000
2/152009
1,200,000
2/152010
1.250,000
2/152011
1,305,000
2/15/2012
1.360.000
2//52013
1,420,000
21152014
1.480.000
9,445,000
1999
9,740.000
General obligation
bonds - 2000 E Series 4.75 -5.0% 811 -211 12/122000 1112011
2/12003
125,000
2/12004
130.000
2/12005
135,000
1112006
145.000
2/12007
150,000
2112008
160,000
2/112009
165,000
2/1/2010
175.000
2/12011
180,000
1365.000
2001
1.485.000
General obligation
bonds - 2000FSeries 6.9 -9.0% 811 -2/1 12/122000 1112011
2/12003
85,000
-
2/ 12004
95.000
2112005
105.000
2/1/2006
110.000
2/12007
120,000
2/1 t2OO8
130.000
2112009
140,000
1112010
150,000
2/12011
160.000
1.095.000
2001
1,175,000
Accrued annual leave —
142,793
2002
—
Judgment payable ( See Note 19)
1.350.000
Stale of Alaska
ADEC loans
Clean water -Kariuk 3.92- 4.05% '• •• ••
6/12003
4,228
6/1/2004
4,334
6112A05
4,442
6/12006
4,553
6112007
4,667
6/12008
4,784
6/12009
4,903
6/1/2010
5.026
6/12011
5,152
6/1/2012
5,280
6/12013
5,412
6/1/2014
5,548
6/12015
5,686
611/2016
5.829
6/12017
5,974
6/I20I8
6.124
6/12019
6.277
6/12020
6.434
6112021
6.594
101.247
1998
400.000
S
18,261,123
$
32,375,000
" Interest free unless delinquent, the 7;r plus fees and penalties.
These loans represent State of Alaska financial assistance programs, for which no payment schedules will be finalized, or principal payments made. until the
plans and specifications for the
projects funded have been completed. The loans are in the amount of $350.000 and $50,000, and are to be repaid from general fund revenues
of the Borough, and therefore the debt is reported
in the General Long -Term Debt Account Group. Interest begins accruing at the stated rates from the date of each individual
disbursement
of loan proceeds to the Borough.
24 (Continued)
Current Year
Prior years Balance at Retired/ Balance at
Issued Retired Juk 1, 2001 Issued Refunded June 30, 2002
$ s $ s s $
375.000 301083 72.917 — 20,833 52.083
9,215,000 4,710,000 4505,000
9.985.000 8.955.000 1,030.000
245,000 9,495.000
1,485,000 — 1,485,000
1,175,000
825,000 3,680,000
1,030.000
50.000 9,445
120,000 1,365,000
1,175,000 — 80.000 1 1 095,000
113,983 28,810 142,793
1,350,000 703,000 2,053,000
105,273 105,273 4,026 101,247
S 22,340,273 $ 14,212,083 $ 19.332173 $ 28.810 s 1,099,859 S 18,964,123
25 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
The annual requirements to amortize all general obligation bonded debt and the EPA and ADEC loans
payable outstanding as of June 30, 2002, including interest payments of $5,164,441 on the general
obligation debt and ADEC loan, are as follows:
General EPA Loan ADEC
obligation payables loan payable Total
Year ending June 30:
2003
$ 1,900,993 $
20,834 $
6,759 $
1,928,586
2004
1,907,690
20,834
6,759
1,935,283
2005
1,904,815
10,415
6,759
1,921,989
2006
1,902,785
—
6,759
1,909,544
2007
1,875,078
—
6,759
1,881,837
Thereafter
12,260,900
—
94,632
12,355,532
$ 21,752,261 $
52,083 $
128,427 $
21,932,771
The amount of $448,065 is available in the Debt Service Funds to service all general obligation bonds.
There are a number of limitations and restrictions contained in the various bond indentures. The Borough is
in compliance with all significant limitations and restrictions.
Refunding Bonds
Investments in securities and current obligations of defeased bonds are not reflected in the combined
financial statements. A summary of the current obligations of defeased bonds at June 30, 2002 are
summarized as follows:
Bond principal
outstanding
Series 1994 Government Obligation
bonds, 5.4% to 5.5 %, due in
installments to 2007
$ 8,955,000
26 (Continued)
,l
r�
�w
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
(7) Long -Term Interfund Borrowings
In October 1997 the Facilities Special Revenue Fund loaned $8,000,000 to the Kodiak Fisheries Research
Center Enterprise Fund. The loan from the Facilities Special Revenue Fund is accounted for as a long -term
interfund advance, while the liability in the Kodiak Fisheries Research Center Enterprise Fund is accounted
for as a long -term interfund borrowing. The interest revenue and interest expense on the debt are reported
as operating transfers in/out. The advance bears interest at 7 %, and the scheduled payments for the next
five fiscal years ended and thereafter are as follows:
Year ending
June 30,
2003 $ 145,008
' 2004 145,008
2005 145,008
2006 120,840
$ 555,864
The Component Unit leases computer equipment under capital leases.
The Hospital Enterprise Fund leases various equipment under a long -term lease agreement at the nominal
annual interest rate of 5.86 %. The initial cost of such equipment included in fixed assets at June 30, 2002,
' is approximately $1,449,0000. Accumulated amortization on the leased equipment is approximately
$423,000 at June 30, 2002.
I I
11 27 (Continued)
'
Principal
Interest
Total
Year ending June 30:
2003 $
2004
240,000 $
255,000
507,500 $
490,175
747,500
745,175
2005
275,000
471,625
746,625
2006
290,000
451,850
741,850
2007
315,000
430,675
745,675
Thereafter
5,755.000
2,851,625
8,606,625
'
$
7,130,000 $
5,203,450 $
12,333,450
(8) Capital Lease Obligations
The Component Unit has operating leases for equipment used at
education program
sites. The future
minimum lease payments for these are as follows:
Year ending
June 30,
2003 $ 145,008
' 2004 145,008
2005 145,008
2006 120,840
$ 555,864
The Component Unit leases computer equipment under capital leases.
The Hospital Enterprise Fund leases various equipment under a long -term lease agreement at the nominal
annual interest rate of 5.86 %. The initial cost of such equipment included in fixed assets at June 30, 2002,
' is approximately $1,449,0000. Accumulated amortization on the leased equipment is approximately
$423,000 at June 30, 2002.
I I
11 27 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
The minimum required lease payments under the capital leases for the next three fiscal years ended are as
follows:
Year ending June 30:
2003
2004
2005
Less amount representing interest
Primary
Government
$ 333,336 $
57,530 $
390,866
333,336
31,473
364,809
194,447
—
194,447
(63,813)
(13,591)
(77,404)
$ 797,306 $
75,412 $
872,718
Component
Unit Total
(9) Note Payable
As of June 30, 2002, the Borough had the following notes payable outstanding in the Enterprise Funds:
Note payable to First Union Capital Markets Corporation, due in monthly
installments of $57,693, including interest (at an effective annual rate
of 6.4 %); secured by equipment $ 669,967
Note payable to Alaska Department of Environmental Conservation
(ADEC), to be paid within 20 years at 3.8% interest, terms to be
negotiated with the first loan payment due one year following
substantial completion and initiation of operation of the facility 1,241,254
Less current portion of note payable
$ 1,241,254
1,911,221
669,967
28
(Continued) '
KODIAK ISLAND BOROUGH
' Notes to Financial Statements
June 30, 2002
'
(10) Enterprise Fund Segment Information
P �►
The Borough owns and operates a Municipal
Solid Waste Collection and Disposal Fund,
a Hospital
'
Facilities Fund (See note 17), a
Kodiak Fisheries
Research Center Fund, and a 911 Services Fund. Segment
financial data as of and for the year ended June 30, 2002, for those funds are as follows:
'
Municipal
Kodiak
solid waste
fisheries
collection
Hospital
research
and disposal
facilities
911 Services center
Total
Operating revenues $
2,843,084 $
1,325,648
$ 69,520 $ 1,497,865 $
5,736,117
Depreciation
166,149
1,279,552
742,970
2,188.671
Operating income (loss)
Operating transfers in (out)
(51,284)
—
30,358
(261,740)
(13,932) 219,578
— (519,837)
184,720
(781,577)
Net income (loss)
(125,273)
(84,567)
(13,932) 275,262
51,490
Amortization of contributions
'
in aid of construction
Property, plant, and equipment
52,408
598,540
= 397.350
1,048.298
additions
9,450
102,361
111,811
Net working capital
1,068,321
(601,900)
56,590 1,180,921
1,703.932
'
Total assets
Bonds and other long -term liabilities:
5,500,744
23,667,993
56,590 19,390,085
48,615,412
Payable from operating revenue
3,534,155
502,867
— 7,130,000
11.167,022
Total equity
1,584,267
22,140,720
56,590 11,820,628
35,602,205
(11) Deferred Compensation Plan
The Kodiak Island Borough has a deferred compensation plan created and amended in accordance with
Internal Revenue Code Section 457. The plan is available to all permanent Borough employees. The
deferred compensation is not available to employees until termination, retirement, death, or unforeseeable
emergency.
All amounts deferred under this plan are held in a trust that was established for the exclusive benefit of
plan participants. Amounts contributed to the plan by participants during the year ended June 30, 2002,
was $60,811.
The plan is managed by the International City Managers Association Retirement Corporation. The
Borough believes that the plan does not meet the criteria in NCGA Statement No. 1, Governmental
Accounting and Reporting Principles, for inclusion as a fiduciary fund.
(12) Insurance and Risk Retention
i The Kodiak Island Borough is exposed to numerous risks of loss associated with the operations of a
government. These potential losses include, but are not limited to, employee relations and injuries,
' contracts, theft, loss or damage of property and general liability. The Borough manages its risks from these
potential losses by participating in the Alaska Municipal League Joint Insurance Association, as well as
purchasing commercial insurance coverage. This insurance has provided the Borough with adequate
coverage in the past. There were no significant changes in insurance coverage obtained and there were no
claims or settlements that exceeded insurance coverage in any of the past three fiscal years.
1 29 (Continued)
WA i
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
The Borough is a member in good standing of the Alaska Municipal League Joint Insurance Association
(JIA), a governmental insurance pool established by the Alaska Municipal League. Claims are covered on
an occurrence basis. JIA provides risk management services, appraisal services and there is also a separate
pool for policy liability. The Kodiak Island Borough Finance Director is a member of the Board of
Directors of the JIA.
The responsibilities of both JIA and the participants are as follows:
Responsibilities of JIA
JIA shall perform the following instructions in discharging its responsibilities:
• Provide insurance coverage as necessary for property, including building and contents, automobile,
mobile equipment and data processing equipment, casualty, including general liability, public
officials' and employees' liability, auto liability and employee benefit liability; workers'
compensation, including employers' liability; commercial blanket bond; and time element.
• Assist each participant's assigned risk manager with the implementation of that function.
• Provide loss prevention and safety and consulting services to participants as required.
• Provide claims adjusting and subrogation services for claims covered by the association's joint
insurance arrangement.
M i
Responsibilities of the Participants
The Participants shall have the following responsibilities:
• The Borough Assembly or appointing official of each participant shall appoint a representative as
provided in Article 5, Section 2 of the bylaws and at least one alternate representative to attend
member meetings.
• Each participant shall appoint an employee of the participant to be responsible for the risk
management function within that entity and to serve as a liaison between the participant and JIA
with respect to risk management.
• Each participant shall maintain an active safety officer and/or committee, and shall comply with all
recommendations of JIA concerning the development and implementation of a loss control policy to
prevent unsafe practices.
• Each participant shall maintain its own set of records as a loss log, in all categories of loss to insure
accuracy of JIA's loss reporting system.
J
30 (Continued) I
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
(13) Individual Fund Disclosures
Interfund Receivables and Payables
A summary of interfund receivables and payables at June 30, 2002, is as follows:
Receivable Payable
General Fund $ 526,979 $ 4,018,722
Special Revenue Funds:
Child Care Assistance Program
— 27,997
Welfare to Work
— 20,651
Building and Grounds
— 162,559
Coastal Management
— 4,275
Fire Protection Area 1
773,294 —
Kodiak Arts Council
— 2,805
Facilities
368,975 —
Debt Service Fund
— 773,294
Capital Project Fund —
State Capital Grants
— 208,692
Enterprise Funds:
Municipal Solid Waste Collection and Disposal
— 100,000
Kodiak Fisheries Research Center
— 368,975
Component unit —
School District
4,018,722 —
$ 5,687,970 $ 5,687,970
Fund Deficits and Accumulated Deficits:
The fund deficits and accumulated deficits at June 30, 2002, are as follows:
Special Revenue Funds:
Coastal Management $ 147
Buildings and Grounds 187,916
Kodiak Arts Council 860
Capital Project Fund —
State Capital Grants 45,356
Enterprise Fund —
Municipal Solid Waste Collection
and Disposal 819,268
$ 1,053,547
Management intends to fund the Special Revenue and Capital Project Funds deficits in fiscal year 2002
through transfers from other funds and fund the deficit in the Enterprise Fund through an increase in
service charges.
31 (Continued)
n
KODIAK ISLAND BOROUGH
'
Notes to Financial Statements
June 30, 2002
'
'
Operating Transfers
Interfund operating transfers and transfers from the component unit have been made in accordance with
budget ordinances.
'
Funds are transferred from one fund to support expenditures of other funds
in accordance
with the
authority established for the individual fund. Transfers between fund types and component units during the
'
year ended June 30, 2002, were as follows.
Transfers in
School
'
Special Debt
Capital
District
Transfers General revenue service
projects
component
out fund funds funds
funds
unit
Fund Types:
'
General Fund $ 6,830,324 $ — $ 50,670 $ 438,214
$ 10.000
$ 6.331.440
Special Revenue Funds 639,919 — 121.222 508,697
10,000
—
Capital Project Fund 200,000 200.000 — —
—
Enterprise Fund:
KFRC 519.837 — 519,837 —
—
—
Hospital Facilities 261,740 — — 261,740
—
—
Component unit —
School District 849,694 — — 849.694
—
—
'
Total transfers $ 9.301.514 $ 200,000 $ 691.729 $ 2,058,345
$ 20.000
$ 6.331,440
1
Excess of Expenditures /Expenses Over Appropriations /Budgets
General Fund
I �
The following department expenditures exceeded their appropriations:
Department
Borough manager
Building official
Excess
I �
$ 27,345
17,574
$ 44,919
Special Revenue Funds
The following funds' expenditures exceeded their appropriations:
Fund
Women's Bay Road Service
Kodiak Arts Council
Monashka Bay Road Service Area
Excess
$ 10,042
3,644
7,938
$ 21,624
I �
I �
I �
I 1
I1
32 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
Enterprise Funds
The following fund expenses exceeded their budget:
Fund
Municipal Solid Waste
Hospital Enterprise Fund
911 Services Fund
Excess
$ 125,466
6,780
14,452
$ 146,698
Proprietary Funds' reconciliation of contributions in aid of construction for the year ended June 30,
2002, is as follows:
Enterprise Funds
Net contributions in aid of
construction at beginning of year $
Amortization of contributions in aid
of construction
Net contributions in aid of
construction at end of year $
Municipal
Kodiak
solid waster
Fisheries
collection Hospital
Research
and disposal facilities
Center
2,455,943 $ 16,759,041 $ 11,125,838
(52.408) (598,540) (397,350)
2,403.535 $ 16,160,501 $ 10,728,488
(14) Solid Waste Landfill Closure and Postclosure Care Costs
State and federal laws and regulations require that the Kodiak Island Borough place a final cover on its
landfill when closed and perform certain maintenance for a number of years after closure. In addition to
operating expenses related to current activities of the landfill, an expense provision and related liability are
recognized based on the future closure and postclosure care costs that will be incurred based on the date
the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is
based on the amount of the landfill used during the year. The estimated liability of landfill closure and
postclosure care costs is $2,292,901 as of June 30, 2002, which is based on 67% usage (filled) of the
landfill. The landfill is estimated to be filled and unusable by the year 2020. Of the total liability at
June 30, 2002, an increase of $170,750 was recorded in the current year based on current year usage and
changes in estimates. An estimated additional $1,122,099 will be recognized as closure and postclosure
care expenses between the date of the balance sheet and the date the landfill is expected to be filled to
capacity. The estimated total current cost of the landfill closure and postclosure care of $3,415,000 is based
on the amount that would be paid if the landfill were closed as of June 30, 2002. However, the actual cost
of closure and postclosure care may be higher due to inflation, changes in technology, or changes in
landfill laws and regulations.
33 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2002
The Kodiak Island Borough is required by state and federal laws and regulations to make annual
contributions to finance closure and postclosure care. The Kodiak Island Borough complies with these
requirements by annually recording the liability based on the estimates provided by the Kodiak Island
Borough's Engineering/Facilities Director. It is anticipated that future inflation costs and additional costs
that might arise from changes in postclosure requirements, due to changes in technology or more rigorous
environmental regulations, for example, will be financed primarily by charges to future landfill users and
secondarily by taxpayers.
(15) Sale of Shuyak Island
The Borough entered into an agreement in December 1995 with the Exxon Valdez Oil Spill Trustee
Council to sell all of its rights on Shuyak Island for $42 million to the State of Alaska. The Borough has
received $30,194,266 to date, and will receive the balance of the sale in a final payment of $11,805,734 on
October 1, 2002.
Six million of the proceeds were used for the construction of the Kodiak Fisheries Research Center. The
remainder will be placed into a facility special revenue fund and used for future capital projects.
(16) Hospital and Mental Health Facilities
Hospital Facilities Enterprise Fund
The Kodiak Island Borough Assembly leases the Kodiak Island Hospital and Care Center premise and
equipment to Sisters of Providence d.b.a. Providence Alaska Medical Center who assumed responsibility
for the hospital's operations as of April 21, 1997. The lease agreement is effective for a term of ten years
from that date and contains provisions for an additional ten -year option. The hospital fixed assets, the lease
income, and all other costs relating to the agreement are accounted for by the Borough in the Hospital
Enterprise Fund.
The agreement with Providence specifies that the Borough shall provide at least $150,000 per year for the
purchase of new and replacement equipment for the hospital. The Borough is also required to fund any
major maintenance and repairs projects exceeding $10,000 in cost. Additionally, the Borough receives
50% of the net revenues of the hospital, up to $600,000.
Should the Borough wish to terminate the lease agreement without cause, the Borough would be required
to refund a $2,000,000 down payment made on the lease in proportion to the number of years remaining on
the ten -year term of the lease, at the rate of $200,000 per year for each remaining year. For accounting
purposes such payment would be considered to be a penalty for the early termination of the lease.
(17) Contingencies
General
The Borough, in the normal course of its activities, is involved in various claims and pending litigation.
After consultation with legal counsel, management estimates that these matters will be resolved without
material adverse effect on the Borough's future financial position or results of operations.
34 (Continued) I
I
KODIAK ISLAND BOROUGH
Notes to Financial Statements
' June 30, 2002
Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by the grantor
agencies. Any disallowed claims, including amounts already collected, would become a liability of the
General or other applicable funds. In management's opinion, disallowances, if any, will not be material.
' Litigation
On January 17, 2001, a judgment in the amount of $1.35 million was rendered against the Borough in the
matter involving alleged misconduct of a former Borough employee. The Borough has elected to appeal
the judgment. Although the ultimate outcome of the appeal is not presently determinable, it is the opinion
of the Borough legal counsel that resolution will not occur for at least twelve months. Accordingly, the
' Borough has recorded the judgment in the General Long -term Debt Account Group. Additional fees and
interest amount to approximately $703,000.
� I
1
1
35
u
1
1
GENERAL FUND
1
The General Fund is used to account for resources traditionally
associated with government which are not required legally or by
sound financial management to be accounted for in any other fund.
Principal sources of revenue are property taxes and intergovern-
mental revenues. Primary expenditures are for general government
and public service.
i�
1
GENERAL FUND
' The General Fund is used to account for resources traditionally associated with government which are not
required legally or by sound financial management to be accounted for in any other fund. Principal sources
I' of revenue are property taxes and intergovernmental revenues. Primary expenditures are for general
government, public services and debt service.
� I
� I
� I
u
� I
� I
Exhibit A -1
KODIAK ISLAND BOROUGH
General Fund
Balance Sheets
June 30, 2002 and 2001
Assets
2002 2001
7,989
4,039,690
245,960
45,890
1,335,028
347,523
(15,828)
86,931
Equity in central treasury
Temporary investments
Accounts receivable
Due from State of Alaska
Due from other funds
Property taxes:
Delinquent taxes
Allowance for uncollectible delinquent taxes
Accrued interest
Total
Liabilities and Fund Balances
Liabilities:
Accounts payable
Payroll taxes and employee benefits
Deferred revenues
Customer deposits
Due to the City of Kodiak
Due to component units
Due to other funds
Total liabilities
Fund balances:
Unreserved
Designated for subsequent year expenditures
Undesignated
Total fund balances
Total
282,864
5,946,139
183,048
64,651
526,979
334,839
(15,828)
1,980
$ 7,324,672 6,093,183
$ 101,184
83,736
268,193
4,800
9,200
4,018,722
108,598
41,199
270,243
22,022
4,017,798
213,645
4,485,835 4,673,505
595,305 —
2,243,532 1,419,678
2,838,837 1,419,678
$ 7,324,672 6,093,183
36
Exhibit A -2
KODIAK ISLAND BOROUGH
General Fund
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Revenues:
Property taxes:
Real
Personal
Motor vehicle
Penalty and interest
Total property taxes
Severance taxes:
Fish
Mining
Logging
Total severance taxes
Intergovernmental:
State sources:
State shared revenue
Municipal assistance
Raw fish tax
Payments in lieu of taxes
Electric Co-op tax
Total state sources
Federal sources:
Payments in lieu of taxes
Miscellaneous
Total federal sources
Total intergovernmental
revenue
Licenses, permits, fees, and other local
revenues:
Building and trailer permits
Subdivision and zoning fees
Sale of copies
Miscellaneous
Total licenses, permits, fees,
and other local revenues
Investments and property:
Interest income
Total investments and
property
Total revenues
2002
Variance-
favorable
2001
Budget
Actual
(unfavorable)
Actual
$ 5,882,370
5,928,208
45,838
5,808,715
1,081,890
1,021,928
(59,962)
1.130,975
180,000
194,793
14,793
178,783
150,000
144,351
(5,649)
162,478
7.294.260
7,289.280
(4,980)
7,280,951
860,000
674,613
(185,387)
791.234
10.000
7.444
(2.556)
6.980
20.000
46,007
26,007
56,019
890.000
728.064
(161,936)
854,233
148,820
109,221
(39,599)
112,492
119,800
119,829
29
110,760
1,092,040
1,364,248
272,208
1,006,948
20,000
18,289
(1,711)
18,731
12,000
26.854
14,854
13,624
1,392.660
1,638,441
245,781
1,262,555
480,000
1,337,974
857,974
473,737
420,200
420,825
625
399,191
900,200
1,758.799
858.599
872.928
2,292,860
3,397,240
1.104.380
2,135,483
60,000
68,126
8,126
66,118
4,000
7,030
3,030
4,966
23,100
19,338
(3,762)
20,594
39,570
142,264
102,694
48,396
126,670
236,758
110,088
140,074
272,200
294,675
22,475
583,633
272,200
294,675
22,475
583,633
10,875,990
11,946,017
1,070,027
10,994,374
37
(Continued)
I
'
Exhibit A
-2
KODIAK ISLAND BOROUGH
'
General Fund
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances
'
Budget and Actual
Year ended June 30, 2002
(With comparative totals for
2001)
1
2002
Variance-
favorable
2001
'
Budget
Actual
(unfavorable)
Actual
Expenditures:
Borough assembly
$ 161,390
130,303
31,087
137,000
1
Borough manager
182,980
210,325
(27,345)
159,275
Borough clerk
285,380
265,108
20,272
263,191
Borough attorney
259,250
196,185
63,065
435,337
Finance department
455,910
425,306
30,604
389,583
'
Assessing department
275,690
179,816
95,874
288,958
Engineering/facilities department
126,330
103,878
22,452
85,310
Community development department
380,090
379,853
237
377,374
'
Building official
110,510
128,084
(17,574)
129,908
Economic development
81,160
68,653
12,507
38,000
General and administration
286,180
270,005
16,175
239,408
Emergency preparedness
5,500
2,574
2,926
3,002
'
School District support
602,000
588,590
13,410
594,246
Health and sanitation department
286,920
280,847
6,073
223,422
Education, culture, and recreation
155,780
147,227
8,553
148,351
Management information systems
615,630
519,780
95,850
293,891
'
Total expenditures
4,270,700
3,896,534
374,166
3,806,256
Excess of revenues over expenditures 6,605,290
8,049,483
1,444,193
7,188,118
'
Other financing sources (uses):
Operating transfers in from other funds
200,000
200,000
-
18,154
Operating transfers to other funds
(473,850)
(498,884)
(25,034)
(639,370)
Operating transfers to component unit
(6,331,440)
(6,331,440)
-
(5,966,440)
Total financing uses
(6,605,290)
(6,630,324)
(25,034)
(6,587,656)
Excess of revenues and transfers in
over expenditures and
transfers out
$ -
1,419,159
1,419,159
600,462
Fund balances, at beginning of year
1,419,678
1,142,515
'
Residual equity transfer out:
Mental Health Center Fund
-
(323,299)
Fund balances, at end of year
$
2,838,837
1,419,678
38
Exhibit A -3
Expenditures:
Borough assembly:
Personnel services
Fringe benefits
Support goods and services
Political lobbyist
Total Borough assembly
Borough Manager's office:
Personnel services
Fringe benefits
Support goods and services
Allocated to projects
Total Borough Manager's office
Borough clerk:
Personnel services
Fringe benefits
Support goods and services
Total Borough clerk
Borough attorney:
Legal fees
Support goods and services
Total Borough attorney
Finance department:
Personnel services
Fringe benefits
Support goods and services
Capital outlay
Allocated to projects
Total finance department
Assessing department:
Personnel services
Fringe benefits
Support goods and services
Capital outlay
Allocated to projects
Total assessing department
KODIAK ISLAND BOROUGH
General Fund
Schedule of Expenditures and Transfers
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
2002
Budget
$ 21,600 $
1,790
78.000
60,000
161,390
121,320
34,640
32,020
(5.000)
150,470
41,680
93.230
285.380
223,250
36.000
259.250
Variance -
favorable 2001
Actual (unfavorable) Actual
21.600 $
- $
1,738
52
44.965
33,035
62,000
(2.000)
130,303
31.087
48.062
144,535
(23.215)
37.844
(3.204)
32,946
(926)
210,325 (27.345)
141.079
9.391
27.576
14.104
96.453
(3.223)
265,108
20.272
(95.805)
175.188
48.062
20.997
15.003
196.185
63.065
370.460
358,898
101,220
89,758
77.035
73.613
3,000
-
(95.805)
(96.963)
455.910
425.306
216,880
144,979
53.010
28,948
41,800
42,889
1,000
-
(37.000)
(37,000)
11.562
11.462
3,422
3.000
1.158
30.604
71.901
24,062
(1,089)
1.000
95.874
20.800
2.250
51.950
62.000
137,000
111.806
23.303
29.166
(5.000)
159.275
132.604
32.346
98.241
263.191
411,683
23.654
435.337
353.567
92.121
73.635
(129.740)
389.583
201,768
50.119
37,071
39 (Continued)
KODIAK ISLAND BOROUGH
General Fund
Schedule of Expenditures and Transfers
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Exhibit A -3
40 (Continued)
2002
Variance-
favorable
2001
Budget
Actual
(unfavorable)
Actual
Engineering/facilities department:
Personnel services $
170,860 $
68,334
$ 102,526 $
55,254
Fringe benefits
50,990
16,188
34,802
13,442
Contracted services
-
4,460
(4,460)
751
Support goods and services
64,480
54,896
9,584
55,863
Allocated to projects
(160,000)
(40,000)
(120,000)
(40,000)
Total Engineering/facilities
department
126,330
103,878
22,452
85,310
Community development department:
Personnel services
276,680
288,694
(12,014)
270,851
Fringe benefits
81,530
72,867
8,663
67.619
Support goods and services
57,880
53.655
4,225
54,755
Allocated to projects
(36,000)
(35,363)
(637)
(15,851)
Total Community
development department
380,090
379,853
237
377,374
Building official:
Contracted services
105,000
122,377
(17,377)
124,606
Support goods and services
5,510
5,707
(197)
5,302
Total building official
110,510
128,084
(17,574)
129,908
Economic development:
General services:
Contracted services
41,000
28,500
12,500
5,000
Contributions:
Kodiak Salmon Workgroup
7,160
7,153
7
-
Kodiak Chamber of Commerce
33,000
33,000
-
33,000
Total economic development
81,160
68,653
12.507
38,000
General and administration:
Fringe benefits
45,310
77,746
(32,436)
45,428
Professional fees
115,000
81,058
33,942
1 17,408
Support goods and services
125,870
111,201
14,669
76,572
Total general and administration
286.180
270,005
16,175
239,408
Emergency preparedness:
Support goods and services
5.500
2,574
2,926
3.002
Total emergency preparedness
5.500
2,574
2,926
3.002
40 (Continued)
Fl
School district support:
Data processing
Mental health services
School crossing guard
Audit expense
Support goods and services
Total School district support
Health and sanitation department:
Kodiak State Fair
Animal Control
Mental Health Center
Council on alcoholism
State Health Services villages
State Health Services KANA
Women's Resource Crisis Center
American Red Cross
Kodiak Baptist Mission
Small World Daycare
Special Olympics
Health center support
Senior citizen support
Kodiak respite care
The Salvation Army
Brother Francis Shelter
Nonprofit organizations
Total health and sanitation
department
Education, culture, and recreation:
KMXT Public Radio
Historical Society
Summer Basketball
Kodiak Art Council
Village Libraries
Chiniak Public Library
City of Kodiak Library
Public Libraries
Head Start
Kodiak College
Kodiak Little League
Santa to the Villages
Kodiak Island Sportsmen
KANA Youth Olympics
KANA Family Center
Kodiak Youth Services Network
St. Mary's
Girl Scouts
Nonprofit organizations
Total education, culture
and recreation
KODIAK ISLAND BOROUGH
General Fund
Schedule of Expenditures and Transfers
Budget and Actual
Year ended June 30. 2002
(With comparative totals for 2001)
2002
oVL.VVV
mi..
Variance -
15.000
52.000
favorable
Budget
Actual
(unfavorable)
$ 126.650 $
126,650
S - $
381,350
381,345
5
12.000
10.250
1,750
37,000
31.924
5.076
45.000
38,421
6.579
oVL.VVV
mi..
15.000
15.000
52.000
60.000
4,753
4,753
28,756
28.756
8,883
8.883
2.535
2,535
38.684
38.684
2.500
2.500
33.268
33.268
8,000
8.000
7,000
7,000
3.500
3.444
24,704
24.704
5.000
5.000
8,500
8.500
29.820
29.820
14.017
-
286,920
280.847
7.609
7,609
4,500
4.500
15.000
15.000
21.000
21,000
7.583
7,583
60.000
60.000
5,600
5,600
2,300
2,300
2,500
2.500
12.000
12,000
5,000
5.000
2,085
2.085
2,050
2,050
8,553
-
41
( 8.000)
56
6,073
Exhibit A -3
2001
126,645
381,345
49,339
36,917
594,246
52.000
4.788
28.816
6.385
2.554
36.807
1,750
17,446
7,000
3,672
24,704
5,000
7,500
25.000
223.422
7.500
4,968
5.000
15.000
15.000
3,000
3,000
7.583
60,000
5.000
2.300
2,000
12,000
5,000
1,000
8.553 148.351
(Continued)
rj
I
KODIAK ISLAND BOROUGH
General Fund
Schedule of Expenditures and Transfers
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Exhibit A -3
42 (Continued)
2002
Variance -
favorable
2001
Budget
Actual
(unfavorable)
Actual
Management information systems:
Personnel services
$ 193,530 $
167,086
S 26.444 $
186.812
Fringe benefits
50,670
43,239
7,431
49,925
Contracted services
—
14,729
(14,729)
—
Support goods and services
271,200
228,704
42.496
203.207
Capital outlay
238,880
204,672
34,208
10,092
Allocated to projects
(138,650)
(138.650)
—
(156.145)
Total management
information systems
615,630
519,780
95.850
293.891
Total expenditures
4,270,700
3.896.534
374.166
3.806.256
Other financing sources (uses):
Operating transfers in from other funds:
Debt service fund
—
—
—
18,154
Capital projects fund
200,000
200,000
—
—
Operating transfers out to other funds:
Special revenue funds:
Building and grounds
(50,670)
(50,670)
—
(29,130)
Debt service funds:
Schools
(393,180)
(393,180)
—
(610.240)
Other
(20,000)
(45.034)
(25,034)
—
Capital projects funds:
Various Borough projects
(10,000)
(10,000)
—
—
Operating transfers to component units:
Kodiak Island Borough School District
(6,331,440)
(6.331,440)
—
(5.966.440)
Total financing uses
(6,605,290)
(6.630.324)
(25,034)
(6,587.656)
Total expenditures and transfers
$ 10,875.990
10.526.858
349,132
10.393.912
42 (Continued)
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues from
specific sources which by law are restricted to finance particular func-
tions and activities.
SPECIAL REVENUE FUNDS
�I
it
1
I�
1
The Fire Protection Area No. 1 Fund accounts for the activities related to fire suppression and fire
prevention services to the citizens of the service area.
The Womens Bay Fire Department Fund accounts for the activities related to fire suppression and fire
prevention services to the citizens of the service area.
The Kodiak Airport Fire District Fund accounts for the activities related to fire suppression and fire
prevention services to the citizens of the service area.
The Monashka Bay Road Service Area Fund accounts for the activities related to road services within
the service area.
The Service District No. 1 Fund accounts for the activities related to maintenance service to roads within
the district, including snow removal, ditching and grading.
The Womens Bay Service Area Fund accounts for the activities related to maintenance service to roads
within the service area, including snow and ice removal, ditching and culvert work.
The Bay View Road Service Area Fund accounts for the activities related to road services within the
service area.
The Service Area No. 2 Fund accounts for the activities related to water and sewer services in the service
area. This fund is in the design stage at present.
The Coastal Management Fund accounts for State of Alaska and Federal grants related to the effects of
coastal energy development impacts. Expenditures of these grants are for comprehensive plans, coastal
sensitivity analysis, outer continental shelf impact analysis, ordinance update, and planning and zoning.
The Childcare Assistance Fund accounts for a State of Alaska grant to finance day care for children of
low- income employed families.
The Welfare to Work Fund accounts for pass through grant monies for local agencies to help individuals
become part of the work force.
� I
I I
I I
SPECIAL REVENUE FUNDS
' The Local Emergency Planning Committee Fund accounts for State of Alaska grants provided for
regional emergency preparation, response, and mitigation planning. This fund was closed in 2002.
The Land Sales Fund accounts for the disposal of Borough -owned lands. The proceeds of land disposals
are generally used for the management of Borough lands and the repairs and maintenance of Borough
school buildings.
The Building and Grounds Fund accounts for the operations and maintenance of certain buildings and
grounds owned by the Borough which are jointly shared with the City of Kodiak, the Kodiak Island
' Borough School District, and certain nonprofit community organizations.
The Woodland Acres Street Light Service Area Fund accounts for activities related to the provision of
' street lighting within the service area.
The Kodiak Arts Council Fund accounts for activities related to the facilitation of the arts in the Kodiak
' community.
The Facilities Fund accounts for the proceeds from the sale of Shuyak Island. The single most important
goal is to preserve the principal of the fund. Interest earnings, after inflation proofing, can be used for debt
' service, building insurance and capital projects.
The Tourism Development Fund accounts for the collection of the Borough Transient Accommodation
' Tax (Bed Tax) and its subsequent transfer to the Kodiak Island Convention and Visitor Bureau.
1
KODIAK ISLAND BOROUGH
Special Revenue Funds
Combining Balance Sheet
June 30, 2002
(With comparative totals for 2001)
43 (Continued)
Fire and Road Service Areas
Fire
Road
Fire
Womens
Kodiak
Monashka
Protection
Bay Fire
Airport Fire
Bay Road
Service
Assets
Area No. 1
Department
District
Service Area
District No. 1
Equity in central treasury
$
137,475
$
236,005
$
28,670
$
54,685
$
255,802
Temporary investments
-
-
-
-
-
Receivables:
State of Alaska
-
-
-
-
-
Federal Government
-
-
-
-
-
Land sales contracts, due within one year
-
-
-
-
-
Accrued interest
-
-
-
-
-
Other
5,317
2,399
1,604
442
2,646
Due from other funds
773,294
-
-
-
-
Long -term interfund advances
-
-
-
-
-
Land sale contracts, due after one year
-
-
-
-
-
Total
$
916,086
$
238,404
$
30,274
$
55.127
$
258,448
Liabilities and Fund Balances
Liabilities:
Accounts payable
$
2,297
$
4,719
$
-
$
-
$
-
Employee benefits accrued and withheld
1,353
-
-
-
-
Customer deposits
-
275
-
-
-
Deferred revenues
-
-
-
-
-
Due to other funds
-
-
-
-
Total liabilities
3.650
4,994
-
-
-
Fund Balances (deficits):
Reserved:
Long -term interfund advances
-
-
-
-
-
Unreserved:
Designated for subsequent year expenditures
96,600
10,000
120
-
64,050
Undesignated
815,836
223,410
30,154
55,127
194,398
Total fund balances (deficits)
912,436
233,410
30,274
55,127
258,448
Totals
$
916,086
$
238,404
$
30,274
$
55.127
$
258,448
43 (Continued)
Exhibit B -1
44 (Continued)
Federal and State grant programs
Child care
Wotnens Bay
Bay View Road
Service Area
Coastal
assistance
Welfare to
Service Area
Service Area
No. 2
management
program
work program
$ 184,443
$
3,902
$ 3,986
S
-
S
-
S
-
-
-
-
8,828
78,512
35,066
-
-
-
-
-
4,388
3,254
42
-
-
-
381
S
S 3,986
S
$
$
39,835
78.512
8,828
3.944
$ 187,697
$
4,700
$
36,848
$
19,184
-
-
-
4,275
27,997
20,651
-
-
-
8,975
64,845
39,835
187,697
3,944
3,986
(147)
13,667
-
187,697
3,944
3,986
(147)
13,667
-
$ 187,697
$
3,944
$ 3,986
$
8,828
$
78,512
$
39,835
44 (Continued)
KODIAK ISLAND BOROUGH
Special Revenue Fund
Combining Balance Sheet
June 30, 2002
(With comparative totals for 2001)
45 (Continued)
Woodland
Acres Street
Buildings and
Light Service
Kodiak Arts
Assets
Land sales
Grounds
Area
Council
Facilities
Equity in central treasury
S
728,447
S
—
$ 34,430
$ —
$
418,072
Temporary investments
—
—
—
—
18,341,171
Receivables:
State of Alaska
—
—
—
—
—
Federal Government
—
—
—
—
—
Land sales contracts, due within one year
6,223
—
—
—
—
Accrued interest
—
—
—
—
30,443
Other
—
500
—
4,175
—
Due from other funds
—
—
—
—
368,975
Long-term interfund advances
—
—
—
—
7,130,000
Land sale contracts, due after one year
86,532
—
—
—
—
Total
S
821,202
S
500
S 34.430
S 4,175
$
26,288,661
Liabilities and Fund Balances
liabilities:
Accounts payable
$
1,248
$
25,363
$ 450
$ —
$
—
Employee benefits accrued and withheld
—
494
—
—
—
Customer deposits
—
—
—
—
—
Deferred revenues
92,755
—
—
2,230
—
Due to other funds
—
162,559
—
2,805
—
Total liabilities
94,003
188,416
450
5,035
—
Fund balances (deficits):
Reserved:
Long -term interfund advances
—
—
—
—
—
Unreserved:
Designated for subsequent year expenditures
—
—
7,000
—
—
Undesignated
727,199
(187,916)
26,980
(860)
26,288,661
Total fund balances (deficits)
727,199
(187,916)
33,980
(860)
26,288,661
Total
$
821,202
S
500
34,430
$ 4,175
$
26,288,661
45 (Continued)
Exhibit B -1
Tourism
Totals
Development
2002
2001
S 19,109
S
2,105,026
$
1,399,733
—
18,341,171
14,358,012
—
122,406
128,391
—
4,388
36,819
—
6,223
16,306
—
30,443
—
9,644
30,404
182,060
—
1,142,269
357,912
—
7,130,000
7,370,000
—
86,532
25,742
$ 28,753
$
28,998,862
$
23,874,975
$ —
$
94,809
$
119,651
—
1,847
283
350
625
525
—
94,985
42,048
—
218,287
338,188
350
410,553
500,695
—
—
7,370,000
—
177,770
178,800
28,403
28,410,539
15,825,480
28,403
28,588,309
23,374,280
$ 28,753
$
28,998,862
$
23,874,975
46
(Continued)
KODIAK ISLAND BOROUGH
Special Revenue Funds
Combining Statement of Revenues. Expenditures. Transfers.
and Changes in Fund Balances (Accumulated Deficits)
June 30, 2002
(With comparative totals for 2001)
Revenues:
Property taxes
State sources
Federal sources
Land sale proceeds
Licenses, permits, fees,
and other local revenues
Investments and property
Other
Total revenues
Expenditures:
Community development department
General and administration
Health and sanitation department
Services district maintenance
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Other financing sources (uses):
Operating transfers in from other funds
Operating transfers out to other funds
Net other financing sources (uses)
Excess (deficiency) of revenues and
other financing sources over (under)
expenditures and other financing uses
Fund balances (accumulated
deficits), at beginning of year
Residual equity transfers in (out)
Fund balances (accumulated
deficits), at end of year
93,155
33,272
Fire and Road Service Areas
(6.258)
29,388
Fire
819,281
200,138
Road
61.385
Fire
Womens
Kodiak
Nlonashka
;0,274 $
55.127 S
Protection
Bay Fire
airport Fire
Bap Road
Service
Womens Bay
Area No. 1
Department
District
Service Area
District No. I
Service Area
$ 289,922
$ 55.927 S
13,727 $
22 ,601
S 13 1.(X)(,
S 85,947
1,685
685
—
1.081
4,265
5,184
8,367
11.951
—
—
290
20,000
21,323
4,928
972
1.398
6.383
4.883
321,297
73,491
14.699
25.080
141.944
116,014
225,478
59.211
70
63
4,102
1.294
31.275
108.454
111.928
225.478
59,211
70
31,338
112,556
113.222
95.819
14,280
14,629
(6,258)
29.388
2,792
—
18,992
—
—
—
—
(2,664)
(18.392)
(600)
(2,664)
18.992
(18,392)
(600)
93,155
33,272
(3,763)
(6.258)
29,388
2,192
819,281
200,138
34,037
61.385
229.060
185,505
$ 912. 436 S
1 2 ;;,410 S
;0,274 $
55.127 S
258,448 $
187.607
47
(Continued)
Exhibit B -2
48 (Continued)
Federal and State Grant Programs
Woodland
Child Care
Welfare
Acres Street
Bav View Road
Service Area
Coastal
Assistance
to Work
Buildings and
Light Service
Kodiak Arts
Service Area
No. 2
Management
Program
Program
Land Sales
Grounds
Area
Council
$ 5,338 $
—
$ — $
— $
—
$ —
$ —
$ — $
—
394
—
24.805
519.438
117,600
—
—
—
-
-
_
—
—
17,101
—
—
—
-
-
—
—
—
—
585,361
—
—
—
—
—
—
—
—
22,150
—
—
54.441
105
88
—
—
—
—
393,900
783
-
-
280
5.837
88
24,805
519.438
134,701
607.791
393.900
783
54.441
—
—
24.805
—
—
—
—
—
—
15
—
—
—
134,701
71,197
485,856
5.417
55,364
—
—
—
519,438
—
—
—
—
—
5,219
—
—
—
—
—
—
5,234
24,805
519.438
134,701
71.197
485.856
5.417
55.364
603
88
—
536,594
(91,956)
(4,634)
(923)
—
—
—
—
—
—
152.900
—
-
-
—
(10.000)
(1,113)
-
-
(10.000)
151,787
60',
88
--
—
—
526.594
59.831
(4,634)
(923)
3.331
3.898
(147)
13.667
—
200.605
(247,747)
38.614
63
$ A44 S
3.986
$ (1 47) $
13.667 $
—
$ "_7.199
$ (187.916)
(860,
48 (Continued)
KODIAK ISLAND BOROUGH
Special Revenue Funds
Combining Statement of Revenues. Expenditures. Transfers
and Changes in Fund Balances (Accumulated Deficits)
June 30. 2002
(With comparative totals for 2001)
I �
Revenues:
Property taxes
State sources
Federal sources
Land sale proceeds
Licenses, permits, fees,
and other local revenues
Investments and property
Other
Total revenues
Expenditures:
Community development department
General and administration
Health and sanitation department
Services district maintenance
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers in from other funds
Operating transfers out to other funds
Net other financing sources (uses)
Excess (deficiency) of revenues and
other financing sources over (under)
expenditures and other financing uses
Fund balances (accumulated
deficits), at beginning of year
Residual equity transfers in (out)
Fund balances (accumulated
deficits), at end of year
Exhibit B•2 I
49
Tourism
Totals
Facilities
Development
2002
2W1
$
604.468 $
578,661
—
—
675,137
666,878
—
—
17,101
40,792
4,000,000
—
4.585,361
4.112,128
—
50,671
167.870
132.382
568.339
—
1,003.102
1211.456
280
12.849
4,568.339
50.671
7.053.319
6.755.146
—
47,213
72,018
66.357
—
—
1,042.768
1,216,323
—
—
519,438
463,388
256.876
14.306
47.213
1,891,100
1.760.374
4,568,339
3.458
5.162,219
4.994.772
519,837
—
691,729
657,309
(607,150)
(639.919)
(788.061)
(87.313)
51,810
(130.752)
4.481,026
3.458
5.214,029
4.864.020
21,807,635
24,945
23.374,280
18,186.961
—
323,299
5 26. 4
28.40: 5
78.588.309 C
:,3'74280
49
KODIAK ISLAND BOROUGH
Special Revenue Funds
Fire and Road Service Areas - Fire Protection Area No. 1
Statement of Revenues, Expenditures, Transfers,
and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Revenues:
Property taxes
State sources
Licenses, permits, fees, and other
local revenues
Investments and property
Total revenues
Expenditures:
General and administration:
Fire chief
Volunteers
Fringe benefits
Contracted services
Support goods and services
Capital outlay
Depreciation
Total expenditures
Excess of revenues over expenditures
Other financing uses:
Operating transfers out to other funds:
Debt service funds
Total other financing uses
Excess of revenues over expenditures
Fund balances, at beginning of year
Fund balances, at end of year
Exhibit B -3
50
2002
Variance-
favorable
2001
Budget
Actual
(unfavorable)
Actual
$ 287.500 $
289,922
$ 2,422 $
279,146
5,000
1,685
(3,315)
9,320
9,500
8,367
(1,133)
5,503
-
21,323
21,323
49,403
302,000
321,297
19,297
343,372
65,000
56,583
8,417
56,541
17,000
14,125
2,875
9,185
25,500
12,574
12,926
11,288
12,000
3,708
8,292
578
100,900
129,609
(28,709)
84,891
111,000
8,879
102,121
-
25,000
-
25,000
-
356,400
225,478
130,922
162,483
(54,400)
95,819
150,219
180,889
-
(2,664)
(2,664)
(985)
-
(2,664)
(2,664)
(985)
$ (54,400)
93,155
$ 147,555
179,904
819,281
639,377
$
912,436
$
819,281
50
KODIAK ISLAND BOROUGH
Special Revenue Funds
Fire and Road Service Areas - Womens Bay Fire Department
Statement of Revenues, Expenditures, Transfers,
and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
2002
Exhibit B -4
Budget
Revenues:
Property taxes $ 52,000 $
State sources -
Licenses, permits, fees, and
other local revenues 9,000
Investments and property
4,500
Total revenues
65,500
Expenditures:
2001
General and administration:
(unfavorable)
Personnel services
1,700
Fringe benefits
3,000
Professional services
2,000
Support goods and services
59,400
Capital outlay
-
Total expenditures
66,100
Excess (deficiency) of revenues
6,889
over (under) expenditures
(600)
Other financing sources:
14.280
Operating transfers in from other funds:
12,072
Special revenue funds
600
Excess of revenues and other
financing sources over expenditures $
-
Fund balances, at beginning of year
33,272
Fund balances, at end of year
200,138
73.491
Variance -
72,394
favorable
2001
Actual
(unfavorable)
Actual
55,927
$ 3,927 $
52,899
685
685
259
11,951
2,951
7,870
4.928
428
11.366
73.491
7,991
72,394
624
1,076
931
287
2,713
-
85
1,915
1,701
58,215
1,185
43,384
-
-
14,306
59,211
6,889
60.322
14.280
14,880
12,072
18,992
18,392
-
33,272 $
33,272
12,072
200,138
188,066
$ 233,410
$
200,138
51
KODIAK ISLAND BOROUGH
Special Revenue Funds
Fire and Road Service Areas – Kodiak Airport Fire District
Statement of Revenues, Expenditures, Transfers,
and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
2002
Variance-
favorable
Budget Actual (unfavorable)
Revenues:
Property taxes $ 27,910 $ 13,727 $ (14,183) $
Investments and property 100 972 872
Total revenues 28,010 14,699 (13,311)
Expenditures:
General and administration:
Contracted services
Support goods and services
Total expenditures
Excess of revenues over expenditures
Other financing sources:
Operating transfers out to other funds:
Womens Bay Fire District
Excess (deficiency) of revenues and
other financing sources over
expenditures
Fund balances, at beginning of year
Fund balances, at end of year
Exhibit B -5
2001
Actual
13,995
1,906
15,901
27.890 — 27,890 14,181
28,010 70 27,940
— 14,629 14,629
(18,392) (18,392)
$ — (3,763) $ (3,763)
14,270
1,631
1,631
32,406
$ 34,037
52
KODIAK ISLAND BOROUGH
Special Revenue Funds
Fire and Road Service Areas – Monashka Bay Road Service Area
Statement of Revenues, Expenditures, Transfers,
and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Revenues:
Property taxes
State sources – shared revenue
Investments and property
Total revenues
Expenditures:
General and administrative:
Personnel services
Support goods and services
Service district maintenance:
Snow removal/sanding
Road grading/ditching
Repairs and maintenance
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances, at beginning of year
Fund balances, at end of year
Exhibit B -6
(6,258) $ (6,258)
16,102
53
2002
Variance-
favorable
2001
Budget
Actual
(unfavorable)
Actual
$ 19,690 $
22,601
$ 2.911 $
22,338
1,410
1,081
(329)
886
2.300
1,398
(902)
3,258
23,400
25,080
1.680
26,482
500
—
500
—
900
63
837
81
12,000
11,539
461
3,996
8,500
19,736
(11,236)
6,303
1,500
—
1,500
—
(6,258) $ (6,258)
16,102
53
Exhibit B -7
KODIAK ISLAND BOROUGH
Special Revenue Funds
Fire and Road Service Areas - Service District No. I
Statement of Revenues, Expenditures, Transfers,
and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 200 1)
ifily?
Revenues:
Property taxes
State sources
Licenses, permits, fees, and other
local revenues
Investments and property
Total revenues
Expenditures:
General and administrative:
Personnel services
Support goods and services
Service district maintenance:
Snow removaUsanding
Road grading/ditching
Repairs and maintenance
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances, at beginning of year
Fund balances, at end of year
139,000 141,944 2,944
4,150
52,000
65,000
30,000
201,150
$ (62,150)
54
2001
124.293
4,051
349
142,732
2,972
1,178
Variance-
1,130
50,870
favorable
Budget
Actual
(unfavorable)
21,924
8,076
$ 124,000 $
131,006
$ 7,006 $
5,000
4,265
(735)
2,000
290
(1,710)
8,000
6,383
(1,617)
139,000 141,944 2,944
4,150
52,000
65,000
30,000
201,150
$ (62,150)
54
2001
124.293
4,051
349
142,732
2,972
1,178
3,408
1,130
50,870
647
85,007
(20,007)
16,415
21,924
8,076
44,329
1,523
48,477
35,131
112,556
88,594
99,930
29,388 $
91,538
42,802
4 L�O,Y FO
KODIAK ISLAND BOROUGH
Special Revenue Funds
Fire and Road Service Areas - Womens' Bay Service Area
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Exhibit B -8
2002
Variance-
favorable
Budget Actual (unfavorable)
Revenues
85,947 $
5,184
20,000
4,883
116,014
7,447 $
5,184
(397 )
Property taxes $
78,500
State sources - shared revenue
-
Licenses, permits, fees, and other
13,459
local revenues
20,000
Investments and property
5,280
Total revenues
103.780
Expenditures:
(10.042)
Service district maintenance:
Snow removal/sanding
30,000
Road grading /ditching
23,000
Repairs and maintenance
29,265
Support goods and services
20,915
Total expenditures
103,180
Other financing uses:
$
Operating transfers out to other funds:
Womens Bay Fire Department
(600)
Excess of revenues over expenditures $
-
Fund balances, at beginning of year
Fund balances, at end of year
2001
80,956
4,821
20,000
117.008
56,556
(26,556)
12,701
16,252
6,748
13,459
39,120
(9,855)
75,350
1,294
19,621
865
113,222
(10.042)
102,375
(600)
-
-
2,192 $
2,192
14,633
185,505
170,872
$ 187,697
$
185,505
55
KODIAK ISLAND BOROUGH
Special Revenue Funds
Fire and Road Service Areas – Bay View Road Service Area
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Exhibit B -9
56
2002
Variance-
favorable
2001
Budget
Actual
(unfavorable)
Actual
Revenues:
Property taxes $
4.600 $
5,338
$ 738 $
5,034
State sources – shared revenue
670
394
(276)
371
Investments and property
200
105
(95)
242
Total revenues
5,470
5,837
367
5,647
Expenditures:
Service district maintenance:
Snowremoval/sanding
2,500
3,806
(1,306)
879
Road grading/ditching
1,970
1,413
557
1,841
Repairs and maintenance
1,000
—
1,000
1,823
Support goods and services
—
15
(15)
17
Total expenditures
5,470
5,234
236
4.560
Excess of revenues over expenditures $
—
603
$ 603
1,087
Fund balances, at beginning of year
3,341
2,254
Fund balances, at end of year
$
3,944
$
3.341
56
KODIAK ISLAND BOROUGH
Special Revenue Funds
Fire and Road Service Areas – Service Area No. 2
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Exhibit B -10
57
2002
Variance -
favorable
2001
Budget
Actual
(unfavorable)
Actual
Revenues:
Investments and property
$ 200 $
88
$ (112) $
203
Expenditures:
Support goods and services
200
—
200
—
Service district maintenance
—
—
—
2
Total expenditures
200
—
200
2
Excess of revenues over
expenditures
$ —
88
$ S8
201
Fund balances, at beginning of year
3,898
3,697
Fund balances, at end of year
$
3,986
$
3,898
57
KODIAK ISLAND BOROUGH
Special Revenue Funds
Coastal Management
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Deficits
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
2002
Exhibit B -11
Budget
Revenues:
State sources – grants $
25,940
Total revenues
25,940
Expenditures:
Community development department:
Planning and zoning
25,940
Total expenditures
25.940
Excess of revenues over expenditures $
—
Fund deficits, at beginning of year
Fund deficits, at end of year
Variance-
favorable 2001
Actual (unfavorable) Actual
24,805 $ (1,135) $ 28,440
24,805 (1,135) 28,440
24,805 1.135 28.440
24.805 1.135 28.440
(147) (147)
$ (147) $ (147)
58
KODIAK ISLAND BOROUGH
Special Revenue Funds
Child Care Assistance Program
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
2002
Exhibit B -12
Variance-
favorable 2001
Budget Actual (unfavorable) Actual
Revenues:
State sources – grants $ 540,049 $ 519,438 $ (20,611) $
Total revenues
540,049
Expenditures:
Health and sanitation department:
Personnel
59,240
Professional services
464,194
Support goods and services
16,615
Total expenditures
540,049
Excess of revenues over expenditures $
—
Fund balances, at beginning of year
Fund balances, at end of year
\GV,V l l /
59,212 28
445,971 18,223
14,255 2,360
519,438 20,611
463,388
463,388
55,307
396,384
11,697
463,388
.p 1J,VVl
59
KODIAK ISLAND BOROUGH
Special Revenue Funds
Welfare to Work Program
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
2002
Revenues:
State sources – grants
Federal sources – grants
Total revenues
Expenditures:
General and administration:
Personnel services
Professional services
Support goods and services
Total expenditures
Excess of revenues over expenditures
Fund balances, at beginning of year
Fund balances, at end of year
Exhibit B -13
13,585 6,963 6,622
170,033 126,821 43,212
974 917 57
184,592 134,701 49,891
—
60
4,740
169,829
1,192
Variance -
favorable
2001
Budget
Actual
(unfavorable)
Actual
$ 117,600 $
117,600
$ — $
134,969
66,992
17,101
(49,891)
40,792
184,592
133,701
(49,891)
175,761
13,585 6,963 6,622
170,033 126,821 43,212
974 917 57
184,592 134,701 49,891
—
60
4,740
169,829
1,192
Exhibit B -14
KODIAK ISLAND BOROUGH
Special Revenue Funds
L.E.P.C.
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 200 1)
2002
Variance-
favorable 2001
Budget Actual (unfavorable) Actual
Revenues:
State sources:
L.E.P.C. grant
Total revenues
Expenditures:
General administration:
Contracted services
Support goods and services
Total expenditures
(Deficiency) excess of revenues
(under) over expenditures
Fund balances, at beginning of year
Fund balances, at end of year
19,500
19,500
— — — 16,877
2,623
— — — 19,500
61
KODIAK ISLAND BOROUGH
Special Revenue Funds
Land Sales
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Revenues:
Land sale proceeds
Licenses, permits, fees, and other
local revenues
Gravel sales
Other
Total revenues
Expenditures:
General and administration:
Personnel services
Contracted services
Support goods and services
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources:
Operating transfers out to other funds:
Capital projects fund
Net other financing sources
Excess (deficiency) of revenues and
other financing sources over
expenditures
Fund balances, at beginning of year
Fund balances, at end of year
Exhibit B -15
(10,000) (10,000) -
(10,000) (10,000) -
$ (45,250) 526,594 $ 571,844
29,166
171,439
$ 200,605
62
2002
Variance -
favorable
2001
Budget
Actual
(unfavorable)
Actual
$ 14,500 $
585,361
$ 570,861 $
112,128
1,000
1,000
-
1,000
25,000
21,150
(3,850)
16,406
-
280
280
-
40,500
607,791
567.291
129,534
52,500
53,091
(591)
40,000
7,000
6,671
329
36,160
16,250
11,435
4,815
24,208
75,750
71,197
4,553
100,368
(35,250)
536,594
571,844
29,166
(10,000) (10,000) -
(10,000) (10,000) -
$ (45,250) 526,594 $ 571,844
29,166
171,439
$ 200,605
62
KODIAK ISLAND BOROUGH
Special Revenue Funds
Buildings and Grounds
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Deficits
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Revenues:
Investments and property:
Rental
Total revenues
Expenditures:
General and administration:
School buildings
Borough building
Apartments
Parks operation and maintenance
Total expenditures
Deficiency of revenues under expenditures
Other financing sources (uses):
Operating transfers in (out) from (to) other funds:
General Fund
Facilities Fund
Debt Service Fund Other
Net other financing sources
Excess of revenues and other financing
sources over expenditures
Fund deficit, at beginning of year
Fund deficit, at end of year
Exhibit B -16
50,670 50,670 -
102,230 102,230 -
(1,113) (1,113)
152,900 151,787 (1,113)
$ - 59,831 $ 59,831
0 1-.-,
63
29,130
92,000
121,984
58,580
(306,327)
$ (247,747)
2002
Variance -
favorable
2001
Budget
Actual
(unfavorable)
Actual
$ 394.080 $
393.900
$ (180) $
359,253
394.080
393.900
(180)
359,253
140,670
186,260
(45,590)
89,650
377,440
271,927
105,513
304,984
1,130
3,227
(2,097)
3,389
27,740
24,442
3,298
24,634
546.980
485,856
61,124
422,657
(152,900)
(91,956)
60,944
(63,404)
50,670 50,670 -
102,230 102,230 -
(1,113) (1,113)
152,900 151,787 (1,113)
$ - 59,831 $ 59,831
0 1-.-,
63
29,130
92,000
121,984
58,580
(306,327)
$ (247,747)
KODIAK ISLAND BOROUGH
Special Revenue Funds
Woodland Acres Street Light Service Area
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Exhibit B -17
2002
Variance -
favorable 2001
Budget Actual (unfavorable) Actual
Revenues:
Investments and property $ 2,000 $ 783 $ (1,217) $ 2,181
Expenditures:
General and administration:
Support goods and services 6,000
Capital outlay 3,000
Total expenditures 9,000
Deficiency of revenues under expenditures $ (7,000)
Fund balance, at beginning of year
Fund balances, at end of year
5,417
583
5,473
—
3,000
—
5,417
3,583
5,473
(4,634) $
(4,800)
(3,292)
38,614
41,906
$ 33,980
$
38,614
64
KODIAK ISLAND BOROUGH
Special Revenue Funds
Kodiak Arts Council
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances (Deficits)
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Revenues:
Licenses, permits, fees, and other
local services:
Reimbursement from Kodiak
Arts Council
Total revenues
Expenditures:
General administration:
Personnel services
Fringe benefits
Support goods and services
Total expenditures
Deficiency of revenues over
expenditures
Fund balance, at beginning of year
Fund balances (deficits), at end of year
Exhibit B -18
2002
Variance-
favorable 2001
Budget Actual (unfavorable) Actual
$ 51,720 $
54,441 $
2,721 $
52,465
51,720
54,441
2,721
52,465
42,270
45,224
(2,954)
42,270
9,450
9,542
(92)
9,366
—
598
(598)
912
51,720
55,364
(3,644)
52,548
$ —
(923) $
(923)
(83)
65
KODIAK ISLAND BOROUGH
Special Revenue Funds
Facilities
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Exhibit B -19
66
2002
V ariance-
farorable
2001
Budget
Actual
(unfavorable)
Actual
Revenues:
Land sale proceeds:
Proceeds from the sale of Shuyak Island $
4,000,000 $
4,000,000
$ — $
4,000,000
Investments and property
1,313,990
568,339
(745,651)
758,307
Total revenues
5,313,990
4,568,339
(745,651)
4,758,307
Expenditures:
General and administration
4,706,840
—
4,706,840
—
Total expenditures
4,706,840
—
4,706,840
—
Excess of revenues over expenses
607,150
4,568,339
3,961,189
4,758,307
Other financing uses:
Operating transfers in (out) from (to) other funds:
Capital projects – Borough projects
—
—
—
(301,746)
Buildings and grounds
(102,230)
(102,230)
—
(92,000)
Enterprise – KFRC
—
519,837
519,837
535,325
Debt service funds
(504,920)
(504,920)
—
(393,330)
Net other financing uses
(607,150)
(87,313)
519,837
(251,751)
Excess of revenues and other financing sources
over expenditures and other financing uses $
—
4,481,026
$ 4.481,026
4,506,556
Fund balances, at beginning of year
21,807,635
17,301,079
Fund balances, at end of year
$
26,288,661
$
21,807.63
66
KODIAK ISLAND BOROUGH
Special Revenue Funds
Tourism Development
Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Revenues:
Transient accommodations tax
Investments and property
Total revenues
Expenditures:
Community development:
Contributions
Support goods and services
Total expenditures
Excess of revenues over
expenditures
Fund balances, at beginning of year
Fund balances, at end of year
Exhibit B -20
67
2002
Variance-
favorable
2001
Budget
Actual
(unfavorable)
Actual
$ 52,000 $
50,671
$ (1,329) $
42,578
200
—
(200)
—
52,200
50,671
(1,529)
42,578
52,200
47,200
5,000
37,900
—
13
(13)
17
52,200
47,213
4,987
37,917
$ —
3,458
$ 3,458
4,661
67
1
1
DEBT SERVICE FUNDS
1
0
Fj
Debt Service Funds are used to account for the payment of
principal, interest and related fees on all bonded debt except for
special assessment bonded debt accounted for in proprietary funds.
KODIAK ISLAND BOROUGH
Debt Service Funds
Combining Statement of Revenues, Expenditures, Transfers,
and Changes in Fund Balances
Year ended June 30, 2002
(With comparative totals for 200 1)
Revenues:
Investments and property:
Interest income
Other
Total revenues
Expenditures:
Debt service:
Principal
Interest
General and administrative
Total expenditures
Deficiency of revenues under
expenditures
Other financing sources (uses):
Operating transfer in from component unit
Operating transfers in from other funds
Operating transfers out to other funds
Total other financing sources (uses)
Excess of revenues and other
financing sources over
expenditures and other
financing uses
Fund balances, beginning of year
Fund balances, end of year
Exhibit C -2
Education
28.811
131,933
and
Totals
113.983
Health
Other 2002
2001
142,794 $
590,858 $
$ 31,884 $
— $ 31,884 $
24,718
12,675
— 12,675
—
44,559
— 44,559
24,718
1,099,860
— 1,099,860
2,015,834
869,519
— 869,519
745,493
1,592
— 1,592
19,792
1,970,971
— 1,970,971
2,781,119
(1,926,412)
— (1,926,412)
(2,756.401)
849,694
— 849,694
1,634,092
1,179,840
28.811 1,208,651
1,195,585
—
— —
(19,008)
2,029,534
28,811 2,058,345
2,810,669
103,122
28.811
131,933
54,268
344,942
113.983
458,925
404,657
$ 448.064 $
142,794 $
590,858 $
458,
69
KODIAK ISLAND BOROUGH
Debt Service Funds
Education and Health
Statement of Revenues, Expenditures, Transfers,
and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Revenues:
Investments and property:
Interest income
Other
Total revenues
Expenditures:
Debt service:
Principal
Interest
General and administrative
Total expenditures
Deficiency of revenues under
expenditures
Other financing sources:
Operating transfer in from component unit
Operating transfers in from other funds
Net other financing sources
Excess of revenues and other
financing sources over
expenditures and other
financing uses
Fund balances, at beginning of year
Fund balances, at end of year
2002
Variance-
favorable
Budget Actual (unfavorable)
Exhibit C -3
2001
$ 1,000 $
31,884 $
30,884 $
24.718
—
12.675
12,675
—
1.000
44.559
43,559
24.718
1,099,864
1,099,860
4
2,015,834
881,646
869,519
12,127
745,493
28,700
1,592
27,108
19,792
2,010,210
1,970,971
39,239
2,781,119
(2,009,210)
(1,926,412)
82,798
(2,756,401)
829,370
849,694
20,324
1,634,092
1,179,840
1,179,840
—
1,194,600
2,009,210
2,029,534
20,324
2,828,692
$ — 103,122 $ 103,122 72,291
344,942 272,651
$ 448,064 $ 344,942
70
KODIAK ISLAND BOROUGH
Debt Service Funds
Other
Statement of Revenues, Expenditures, Transfers,
and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 200 1)
2002
t
Revenues
Other financing sources (uses):
Operating transfers in from other funds
Operating transfer out to other funds
Net other financing sources (uses)
Excess (deficiency) of revenues
and other financing sources
over expenditures and other
financing sources and uses
Fund balances, at beginning of year
Fund balances, at end of year
Variance-
favorable
Budget Actual (unfavorable)
28,811 28,811
28,811 28.811
$ — 28,811 $ 28,811
71
Exhibit C -4
2001
Actual
985
(19,008)
(18,023)
(18,023)
a ll�,yo�
p
7
CAPITAL PROTECTS FUNDS
Capital Projects Funds are used to account for general govern-
ment capital projects financed by general obligation bond issues,
intergovernmental grants, contributions from other funds and interest
income, exclusive of projects financed by proprietary funds.
L�
1
i
1
L
1
1
1
� I
� I
I I
CAPITAL PROJECTS FUNDS
The Various Borough Projects Fund accounts for general government construction projects not
accounted for in other funds.
The State Capital Grants Fund accounts for capital improvement projects relating to grants received
from the State of Alaska.
I I
I A
I I
I I
I I
Assets
Equity in central treasury
Temporary investments
Receivables:
State of Alaska
Due from other funds
Total
Liabilities and Fund Balances
Liabilities:
Accounts payable
Retainages payable
Due to other funds
Total liabilities
Fund balances:
Reserved for encumbrances
Unreserved:
Undesignated
Total fund balance (deficit)
Total
KODIAK ISLAND BOROUGH
Capital Project Funds
Combining Balance Sheet
June 30, 2002
(With comparative totals for 2001)
Various
J.YJJ,17U
State
borough
407,107
capital
projects
208,692
grants
$ 129,503
$
— $
538,863
—
—
183,864
$ 668,366
$
183,864 $
$ —
$
20,528 $
3,705
-
-
208,692
3,705
229,220
664,661
(45,356)
664,661
(45,356)
$ 668,366
$
183,864 $
Exhibit D -1
Totals
1LY,JVJ L43,31-1
538,863 2,727,987
183,864 268,249
OJL,LJV .p
J.YJJ,17U
20,528 $
407,107
3,705
48,181
208,692
152,914
232,925
608,202
— 2,137,930
619,305 709,064
619,305 2,846,994
852,230 $ 3,455,196
72
11
1
s
■ .•
■ s
■ s
I M
I M
i
KODIAK ISLAND BOROUGH
Capital Project Funds
Combined Statement of Revenues, Expenditures, Transfers, and Changes in Fund Balances
Year ended June 30, 2002 (with comparative totals for 2001)
Revenues:
State sources
Licenses, permits, fees, and
other local revenues
Investments and property
Total revenues
Expenditures:
Capital improvements:
Schools
General
Total expenditures
Deficiency of revenues under
expenditures
Other financing sources (uses):
Operating transfers in from other funds
Operating transfers out to other funds
Proceeds from issuance of long -term debt
Net other financing sources (uses)
Excess (deficiency) of revenues
and other financing sources
over expenditures and other
financing uses
Fund balance, at beginning of year
Fund balance (deficit), at end of year
Exhibit D -2
Various
State
borough
capital
Totals
projects
grants
2002
2001
$ — $
315,499 $
315,499 S
388,711
660
—
660
—
33,539
—
33,539
89,551
34,199
315,499
349,698
478,292
2,029,464
131,541
2,161,005
671,985
6,374
230,008
236,382
624,788
2,035,838
361,549
2,397,387
1,296,773
(2,001,639)
(46.050)
(2,047,689)
(818,481)
20,000
—
20,000
301,746
(200,000)
—
(200,000)
-
-
—
—
2,677,871
(180,000)
—
(180,000)
2,979,617
(2,181,639)
(46,050)
(2,227,689)
2,161,136
2,846,300
694
2,846,994
685,858
$ 664,661 $
(45,356) $
619,305 $
2,846,994
73
i r
KODIAK ISLAND BOROUGH
Capital Projects Funds
Schedule of Capital Projects
Year ended June 30, 2002
Project
no. Project
74
Capital projects - Education:
00100
430 -696
School Repair KHS Roof
01100
430 -601
HS Roof Repair
01102
420 -510
Series E Bond HS Roof Repair
01105
410 -695
Series F Bond HS Roof Repair
02108
430 -602
HS Repairs Matching Grant (State)
02109
410 -486
HS Repairs Matching Grant (KIB)
968,106
-
Total education
Complete
Capital projects - Utilities:
00102
410 -698
Bayside Underground Electric
182
410 -692
State Fair & Rodeo Water
2,725,274
Total utility projects
2,928,090
Capital projects - Other:
22,000
410 -400
Undesignated Projects
85
410 -471
Village Metals Removal
105
410 -482
Anton Larsen Dock
114
410 -642
State Airport Improvements
117
410 -645
Heliopad Striping
133
410 -658
Red Cross Building Repairs
142
430 -642
Clean Water Fund/Karluk
146
410 -663
BMX Bike Trail
159
410 -675
Borough Parks
164
430 -645
Waste Management Imp
169
430 -649
Clean Water Karluk
173
410 -683
Bayside Classroom Add
174
410 -684
Bayside Storage/Bay Add
177
430 -687
Anton Larsen Boat Ramp
184
430 -694
Oil Spill Response Equip
00104
430 -699
Tide Gate
00106
410 -690
MIS Study
01106
430 -625
Volunteer Fire Assistance Program
02107
430 -648
ADF &G Research Study
02110
410 -506
GIS Study
400,000
-
Total - capital projects other
Open
400,000
Total all capital projects
74
Appropriations
Total
Status
Prior
2002
appropriations
Open $
126,770 $
-
$ 126,770
Complete
125,398
-
125,398
Open
1,505,000
25,000
1,530,000
Open
968,106
-
968,106
Complete
-
124,471
124,471
Complete
-
53,345
53,345
2,725,274
202,816
2,928,090
Open
22,000
-
22,000
Open
25,000
-
25,000
47,000
-
47,000
Open
224,764
(200,000)
24,764
Open
150,000
-
150,000
Open
140,000
-
140,000
Open
11,000
-
11,000
Open
3,000
-
3,000
Open
12,000
-
12,000
Complete
50,000
-
50,000
Open
55,000
-
55,000
Open
26,500
-
26,500
Open
1,585,800
271,300
1,857,100
Complete
350,000
-
350,000
Open
75,000
-
75,000
Open
400,000
-
400,000
Open
400,000
-
400,000
Open
400,000
-
400,000
Open
10,000
-
10,000
Complete
30,000
-
30,000
Complete
-
3,699
3,699
Open
-
200,000
200,000
Open
-
20,000
20,000
3,923,064
294,999
4,218,063
$
6,695,338 $
497,815
$ 7,193,153
74
Exhibit U -3
75
Encumbrances
Expenditures
Total
Unexpended
Current Unencumbered
Prior
2002
expenditures
balance
encumbrances balance
$ 73,644 $
7,070
$ 80,714
$ 46,056
$ - $ 46,056
125,398
-
125,398
-
- -
294,064
1,239,305
1,533,369
(3,369)
- (3,369)
4,572
736,814
741,386
226,720
- 226,720
-
124,471
124,471
-
- -
-
53,345
53,345
-
- -
497,678
2,161,005
2,658,683
269,407
- 269,407
-
-
-
22,000
- 22,000
15,309
5.315
20,624
4,376
- 4,376
15,309
5,315
20,624
26,376
- 26,376
17,870
1,059
18,929
5,835
- 5,835
120,994
-
120,994
29,006
- 29,006
139,580
-
139,580
420
- 420
60
-
60
10,940
- 10,940
-
-
-
3,000
- 3,000
6,778
-
6,778
5,222
- 5,222
23,192
-
23,192
26,808
- 26,808
49,278
-
49,278
5,722
- 5,722
10,231
-
10,231
16,269
- 16,269
163,236
108,266
271,502
1,585,598
- 1,585,598
89,189
-
89,189
260,811
- 260,811
48,199
-
48,199
26,801
- 26,801
20
-
20
399,980
- 399,980
88,170
10,903
99,073
300,927
- 300,927
354,702
44,709
399,411
589
- 589
1,304
-
1,304
8,696
- 8,696
29,983
-
29,983
17
- 17
-
3,699
3,699
-
- -
-
62,431
62,431
137,569
- 137,569
-
-
-
20,000
- 20,000
1,142,786
231,067
1,373,853
2,844,210
- 2,844,210
$ 1,655,773 5
2,397,387
$ 4.053,160
$ 3,139,993
$ - $ 3,139,993
75
ENTERPRISE FUNDS
Enterprise Funds are used to account for Borough operations that
are financed and operated in a manner similar to private business
enterprises. The intent of the Borough is that the costs (expenses,
including depreciation) of providing these services to the general
public on a continuing basis are financed or recovered primarily
through user charges.
1
_-J
I
ENTERPRISE FUNDS
The Municipal Solid Waste Collection and Disposal Fund accounts for the collection and disposal of
solid waste and recycling services for the Kodiak Island Borough.
The Hospital Facilities Fund accounts for rents on the Borough -owned hospital; hospital related state
revenue sharing; and other hospital related revenue. In turn, it purchases hospital equipment and makes
debt service payments on hospital related debt.
The 911 Service Fund accounts for funds collected from phone charges and pays for a 911 emergency
system.
The Kodiak Fisheries Research Center Fund accounts for rents and expenses on the Borough -owned
Kodiak Fisheries Research Center. The three tenants: NOAA, Alaska Department of Fish & Game and
University of Alaska, Fairbanks pay lease funds to participate in this multi- agency research facility
committed to the preservation of the North Pacific marine ecosystem and resources.
KODIAK ISLAND BOROUGH
Enterprise Funds
Combining Balance Sheet
June 30, 2002 (with comparative totals for 2001)
Exhibit E -1 I
76
Municipal
Kodiak
solid waste
fisheries
collection and
Hospital
911
research
Totals
Assets
disposal
facilities
services
center
2002
2001
Current assets:
Equity in central treasury
$ 135,576 $
366,199
$ 56.590 $
598.3% $
1.156.761
$
321.180
Temporary investments
863,569
56,307
-
1,012.919
1,932.795
3,075.742
Accrued interest receivable
4,735
-
-
9,063
13.798
3,064
Customer receivables
346,763
-
-
-
346.763
243,332
Accounts receivable - State of Alaska
100,000
-
100.000
100.000
Total current assets
1,450,643
422,506
56,590
1.620.378
3,550.117
3.743.318
Inventories
277,007
-
-
277,007
277,007
Fixed assets:
Unclassified utility plant in service
2,200,347
-
-
-
2,200.347
2.200.347
Land and improvements
-
401,046
-
1,021,998
1,423,044
1,423,044
Buildings
-
26,131,043
-
17,840.400
43,971.443
43.971.443
Machinery and equipment
1,001,811
4.760,081
-
1,134,663
6,896,555
6,794,194
Construction work -in- process
2,241,254
-
-
2.241.254
2.231,804
5,443,412
31,292,170
-
19.997,061
56.732,643
56,620,832
Less accumulated depreciation
(1.393.311)
(8,323,690)
-
(2.227.354)
(11.944,355)
(9.755.684)
Net fixed assets
4,050.101
22.968.480
-
17.769,707
44.788.288
46,865.148
Total
S 5.500.744 $
23.667.993
S 56.590 S
19.390.085 $
48.615,412
S
50.885.473
Liabilities and Fund Equities
Current liabilities:
Accounts payable
S 139.468 $
-
$ - $
22,505 $
161,973
$
184,806
Deferred revenue
-
60,000
-
43,745
103,745
-
Accrued expenses
142,854
-
-
4.232
147.086
68.208
Current portion of note payable
-
669,967
-
-
669,967
629,656
Current portion of capital lease obligations
-
294,439
-
-
294,439
277,720
Due to other funds
100,000
-
-
368.975
468,975
1,201,840
Total current liabilities
382,322
1.024,406
-
439.457
1.846,185
2,362,230
Noncurrent liabilities:
Notes payable
1,241.254
-
-
-
1,241,254
1,901,494
Capital lease obligations
-
502,867
-
-
502,867
797,306
Long-term interfund borrowings
-
-
-
7,130,000
7,130,000
7.370,000
Accrual for landfill closure and
postclosure costs
2,292,901
-
-
-
2,292.901
2,122.151
Total liabilities
3,916,477
1.527,273
-
7.569.457
13.013.207
14.553.181
Fund equities:
Contributions in aid of construction:
State of Alaska
3,413,636
-
-
3.000.000
6.413,636
6,413,636
Other
19,990
17,956,116
8,920.540
26.896.646
26.896,646
3,433,626
17,956,116
-
11,920,540
33.310.282
33,310,282
Accumulated amortization
(1,030.091)
(1.795,615)
(1,192,052)
(4.017.758)
(2.969.460)
Net contributions in aid of
construction
2,403,535
16,160,501
-
10,728,488
29,292.524
30.340.822
Contributed capital
-
5,166,717
-
215,486
5,382,203
5.382,203
Retained earnings (accumulated deficit).
unreserved
(819.268)
813,502
56,590
876.654
927.478
609,267
Total fund equities
1,584.267
22.140,720
56,590
1 1,820,628
35.602.205
36,332.292
Total
$ 5.500,744 $
23.667.993
S 56,590 $
19,390.085 S
48.615.412
$
50.885.473
76
KODIAK ISLAND BOROUGH
Enterprise Funds
Combining Statement of Revenues, Expenses, Transfers, and
Changes in Retained Earnings (Accumulated Deficits)
Year ended June 30, 2002
(With comparative totals for 2001)
Exhibit E -2
77
Municipal
Kodiak
solid waste
fisheries
collection and
Hospital
911
research
Totals
disposal
facilities
services
center
2002
2001
Operating revenues:
Solid waste collection
$ 1,740,766 $
- $
-
- $
1,740,766 $
1,718,904
Solid waste disposal
1,094,484
-
-
-
1,094,484
889,885
State sources - revenue sharing
-
39,617
-
-
39.617
39,907
Customer charges
-
-
69,520
-
69,520
69,078
Rents and royalties
-
-
-
1,497,865
1,497,865
1,484,927
Donations
-
79,671
-
-
79,671
103,400
PKIMC gain
-
486,360
-
-
486,360
372,732
Lease proceeds
-
720,000
-
-
720,000
720,000
Other
7,834
-
7,834
11.566
2,843,084
1,325,648
69.520
1.497,865
5,736,117
5.410.399
Operating expenses:
Personnel services
372,885
3,528
10,500
189,242
576,155
533.442
Solid waste collection
1,276,583
-
-
-
1.276,583
1,250,607
Refuse disposal
284.554
-
-
-
284,554
297,992
Contracted services
276.464
-
-
35,170
311,634
356,220
Repairs and maintenance
73,934
12,210
-
250,328
336,472
377,610
Landfill closure and postclosure costs
170,750
-
-
-
170,750
57,115
Depreciation
166,149
1,279,552
-
742,970
2,188,671
2,018,632
General and administration
195,734
-
-
-
195,734
177,654
Telephone services
-
-
72,952
-
72,952
-
Recycling services
70,000
-
-
-
70,000
67,680
Miscellaneous
-
-
-
60,533
60,533
51,954
Support goods and services
-
-
-
44
44
802
Contributions
7,315
-
7,315
2,844
2,894,368
1,295,290
83,452
1.278,287
5.551,397
5,192.552
Operating income (loss)
(51,284)
30.358
(13,932)
219,578
184,720
217,847
Other income (expenses):
Intergovernmental revenue
-
-
-
-
-
69,838
Interest income
29,955
3,631
-
55,684
89,270
76,673
Interest expense
(103,944)
(118.556)
-
-
(222,500)
(171,689)
Loss on sale of assets
-
(226,761)
Net income (loss)
(125,273)
(84,567)
(13,932)
275,262
51,490
(34,092)
Operating transfers out to other funds
-
(261,740)
-
(519,837)
(781,577)
(726,355)
Amortization of contributions in aid
of construction
52.408
598,540
397,350
1,048,298
1,048,2%
Increase (decrease) in retained earnings
(72,865)
252,233
(13,932)
152,775
318,211
287.849
(Accumulated deficit) retained earnings,
at beginning of year
(746.403)
561.269
70.522
723.879
609,267
321,418
(Accumulated deficit) retained earnings,
at end of year
5 (819.268) $
813.502 S
56.590 5
876.654 $
9'_7.178 $
609,26
77
Operating income (loss)
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
Changes in assets and liabilities, net of effects of
transfer of assets and liabilities from other
funds:
Customer receivables
Due totfrom other funds
Accounts payable
Deferred revenues
Accrual for landfill closure and postclosure
costs
Other accrued liabilities
Total adjustments
Net cash provided by (used for)
operating activities
Cash flows from noncapital and related financing
activities:
Operating transfers out to other funds
Net cash used for noncapital
and related financing activities
Cash flows from capital and related financing
activities:
Acquisition and construction of capital assets
Interest paid on notes payable, capital leases
and interf ind borrowing
Principal paid on long -term interfund
borrowing
Proceeds from issuance of note payable
Principal payments on notes payable
Principal payments on capital lease obligations
Net cash used for capital and related
financing activities
Cash flows from investing activities:
Interest and dividends on investments
Net (decrease) increase in investments
Net cash (used for) provided by
investing activities
Net change in cash and cash equivalents
Cash and cash equivalents, at beginning of year
Cash and cash equivalents, at end of year
Noncash capital and related financing activities:
Loss on disposal of fixed assets
KODIAK ISLAND BOROUGH
Enterprise Funds
Combining Statement of Cash Flows
Year ended June 30, 2002
(With comparative totals for 2001)
Municipal
solid waste
collection Hospital 911
and disposal facilities services
$ (51,284) $ 30.358 $ (13,932) $
Exhibit E -3
Kodiak
fisheries
research Totals
center 2002 2001
219.578 S 184.720 $ 217,847
166,149
1,279.52
-
742.970
2.188,671
2.018.632
(105,601)
-
-
2.170
(103,431)
266.754
-
-
-
(747,865)
(747.865)
814,484
(15,307)
-
-
(7,526)
(22.833)
(113,086)
-
60,000
-
26,296
86,296
-
170,750
-
-
-
170,750
55,393
(7,426)
-
(191)
(7,617)
16,946
208,565
1,339,552
15.854
1,563,971
3,059,123
157,281
1,369,910
(13,932)
235.432
1,748.691
3,276,970
(261,740)
(519.837)
(781,577)
(726,355)
(261,740)
(519,837)
(781.577)
(726.355)
(9,450)
(102,361)
-
-
(111,811)
(491,697)
-
(118,556)
-
-
(118,556)
(171,689)
-
-
-
(225,000)
(225,000)
(210,000)
9,450
-
-
-
9,450
299,686
-
(629,379)
-
-
(629,379)
(592,016)
(277,720)
(277,720)
(261.951)
-
(1,128,016)
-
(225,000)
(1,353.016)
(1,427,667)
25,855
4,117
-
48.564
78,536
85,637
(212,175)
295,885
-
1,059,237
1,142,947
(1,220,596)
(186,320)
300,002
1,107,801
1,221.483
(1,134,959)
(29,039)
280,156
(13,932)
598,396
835,581
(12,011)
164,615
86,043
70,522
-
321,180
333,191
$ 135.576 S
366.199 S
56.590 $
598.396 S
1.156.761 $
321.180
$
- $
- 5
22o.76
78
KODIAK ISLAND BOROUGH
Municipal Solid Waste Collection and Disposal Fund
Balance Sheets
June 30, 2002 and 2001
Exhibit E -4
Assets 2002 2001
Current assets:
Equity in central treasury $ 135,576 $ 164,615
Temporary investments 863,569 651,394
Customer receivables 346,763 241,162
Accounts receivable — State of Alaska 100,000 100,000
Accrued interest receivable 4,735 635
1,450,643 1,157,806
Fixed assets:
Unclassified utility plant in service
Equipment
Construction work -in- process
Less accumulated depreciation
Total
2,200,347
2,200,347
1,001,811
1,001,811
2,241,254
2,231,804
(1,393,311)
(1,227,162)
4,050,101
4,206,800
$ 5,500,744 $
5,364.606
Liabilities and Fund Equity
Current liabilities:
Accounts payable
Due to other funds
Accrued expenses
Noncurrent liabilities:
Landfill closure and postclosure costs
Note payable
Fund equity:
Contributions in aid of construction:
State of Alaska
Other
Accumulated amortization
Net contributions in aid of construction
Accumulated deficit
Total fund equity
Total
$ 139,468 $
154,775
100,000
100,000
142,854
46,336
382,322
301,111
2,292,901 2,122,151
3,916,477 3,655,066
3,413,636 3,413,636
19.990 19,990
3,433,626
3,433,626
(1,030,091)
(977,683)
2,403,535
2,455,943
(819,268)
(746,403)
1,584,267
1,709,540
$ 5,500,744 $ 5,364,606
79
KODIAK ISLAND BOROUGH
Municipal Solid Waste Collection and Disposal Fund
Statement of Revenues, Expenses, Transfers, and
Changes in Accumulated Deficit
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
2002
Operating revenues:
Solid waste collection
Solid waste disposal
Other
Operating expenses:
Personnel services
Solid waste collection
Refuse disposal
Contracted services
Repairs and maintenance
Landfill closure and postclosure costs
Depreciation
General and administration
Contributions
Recycling services
Operating income
Other income (expense):
Intergovernmental revenue
Interest income
Interest expense
Loss on disposal of fixed assets
Net income (loss)
Amortization of contributions in
aid of construction
Increase (decrease) in
retained earnings
Accumulated deficit, at beginning of year
Accumulated deficit, at end of year
2,718,008 2,894,368 (176,360)
(79,408) (51,284) 28,124
27,000 29,955 2,955
- (103,944) (103,944)
(JZ,4UtS) (1ZJ,Z /3) ( /Z,2SbJ)
52,408 52,408 -
$ - (72,865) $ (72,865)
(746,403)
$ (819,268)
Exhibit E -5
2001
1,718,904
889,885
2,620,355
338,392
1,250,607
297,992
285,132
40,781
57,115
93,714
177,654
2,844
2,611,911
8,444
69,838
24,376
(13,493)
89,165
52,408
141,573
(887,976)
$ (746,403)
80
Variance-
favorable
Budget
Actual
(unfavorable)
$ 1,610,900 $
1,740,766
$ 129,866 $
1,015,500
1,094,484
78,984
12,200
7,834
(4,366)
2,638,600
2,843,084
204,484
360,360
372,885
(12,525)
1,119,100
1,276,583
(157,483)
300,000
284,554
15,446
375,000
276,464
98,536
27,000
73,934
(46,934)
166,000
170,750
(4,750)
120,660
166,149
(45,489)
189,288
195,734
(6,446)
600
7,315
(6,715)
60,000
70,000
(10,000)
2,718,008 2,894,368 (176,360)
(79,408) (51,284) 28,124
27,000 29,955 2,955
- (103,944) (103,944)
(JZ,4UtS) (1ZJ,Z /3) ( /Z,2SbJ)
52,408 52,408 -
$ - (72,865) $ (72,865)
(746,403)
$ (819,268)
Exhibit E -5
2001
1,718,904
889,885
2,620,355
338,392
1,250,607
297,992
285,132
40,781
57,115
93,714
177,654
2,844
2,611,911
8,444
69,838
24,376
(13,493)
89,165
52,408
141,573
(887,976)
$ (746,403)
80
KODIAK ISLAND BOROUGH
Municipal Solid Waste Collection and Disposal Fund
Statements of Cash Flows
Years ended June 30, 2002 and 2001
Operating income (loss)
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
Changes in assets and liabilities, net of effects from the
transfer of assets and liabilities from other funds:
Customer receivables
Due from other funds
Due to other funds
Accounts payable
Accrual for landfill closure and postclosure costs
Other accrued liabilities
Total adjustments
Net cash provided by operating activities
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets
Proceeds from issuance of note payable
Net cash used for capital and related
financing activities
Cash flows from investing activities:
Purchase of investments
Interest and dividends received on investments
Net cash provided by (used for) investing activities
Net change in cash and cash equivalents
Cash and cash equivalents, at beginning of year
Cash and cash equivalents, at end of year
Noncash capital and related financing activities:
Loss on disposal of fixed assets
2002
$ (51,284) $
166,149
(105,601)
(15,307)
170,750
(7,426)
208,565
157,281
(9,450)
9,450
(212,175)
25,855
(186,320)
(29,039)
164,615
$ 135,576 $
Exhibit E -6
2001
8,444
93,714
46,147
147,935
(199,303)
(13,910)
55,393
343
130,319
138,763
(368,589)
299,686
(68,903)
2,495
29,627
32,122
101,982
62,633
164,615
13,493
KODIAK ISLAND BOROUGH
Hospital Facilities Fund
Balance Sheets
June 30, 2002 and 2001
Exhibit E -7
Assets
2002
2001
Current assets:
Equity in central treasury
$
366,199
$
86,043
Temporary investments
56,307
352,192
Accrued interest receivable
—
486
422,506
438,721
Inventories
277,007
277,007
Fixed assets:
Buildings
26,131,043
26,131,043
Machinery and equipment
4,760,081
4,657,720
Land and improvements
401,046
401,046
Less accumulated depreciation
(8,323,690)
(7,044,138)
22,968,480
24,145,671
Total
$
23,667,993
$
24,861,399
Liabilities and Fund Equity
Current liabilities:
Deferred revenue
$
60,000
$
—
Current portion of long -term debt
669,967
629,656
Current portion of capital lease obligations
294,439
277,720
1,024,406
907,376
Long -term debt
—
669,690
Capital lease obligations
502,867
797,306
502,867
1,466,996
1,527,273
2,374,372
Fund equity:
Contributions in aid of construction
Other
17,956,116
17,956,116
Accumulated amortization
(1,795,615)
(1,197,075)
16,160,501
16,759,041
Contributed capital
5,166,717
5,166,717
Retained earnings, unreserved
813,502
561,269
Total fund equity
22,140,720
22,487,027
Total
$
23,667,993
$
24,861,399
82
KODIAK ISLAND BOROUGH
Hospital Facilities Fund
Statement of Revenues, Expenses, Transfers, and
Changes in Retained Earnings
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
2002
Operating revenues:
State sources - revenue sharing
Lease proceeds
Donations
PKIMC gain
Operating expenses:
Personnel services
Depreciation
Maintenance and repairs
Contingencies
Operating (loss) income
Other income (expenses):
Interest income
Interest expense
Loss on disposal of fixed assets
Income before operating transfers
Other financing uses:
Operating transfers out to other funds
Net other financing uses
Net loss
Amortization in contributions
in aid of construction
Increase in retained earnings
Retained earnings, at beginning of year
Retained earnings, at end of year
Exhibit E -8
2001
39,907
720,000
103,400
-
3,528
Variance
-
1,179,350
favorable
Budget
Actual
(unfavorable)
$ 40,000 $
39,617
$ (383) $
720,000
720,000
-
130,000
79,671
(50,329)
200,000
486,360
286,360
1,090,000
1,325,648
235,648
Exhibit E -8
2001
39,907
720,000
103,400
-
3,528
(3,528)
-
1,179,350
1,279,552
(100,202)
1,180,918
10,000
12,210
(2,210)
-
99,160
-
99,160
-
1,288,510
1,295,290
(6,780)
1,180,918
(198,510)
30,358
228,868
55,121
-
3,631
3,631
12,506
(118,290)
(118,556)
(266)
(171,689)
-
-
-
(186,197)
(316,800)
(84,567)
232,233
(290,259)
(281,740)
(261,740)
20,000
(191,030)
(281,740)
(261,740)
20,000
(191,030)
(598,540)
(346,307)
252,233
(481,289)
598,540
598,540 - 598,537
L3 -1 LJ L,LJJ
561,269
$ 813,502
111,1'+0
4a Ju1,LO7
83
KODIAK ISLAND BOROUGH
Hospital Facilities Fund
Statements of Cash Flows
Years ended June 30, 2002 and 2001
Operating income
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation
Changes in assets and liabilities:
Customer receivables
Accounts payable
Due to other funds
Deferred revenues
Total adjustments
Net cash provided by operating activities
Cash flows from noncapital and related financing activities:
Operating transfers out to other funds
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets
Interest paid on note payable and capital leases
Principal payments on note payable
Principal payments on capital lease obligations
Net cash used for capital and related financing
activities
Cash flows from investing activities:
Interest and dividends paid on investments
Maturities of 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
Noncash capital and related financing activities:
Loss on disposal of fixed assets
Exhibit E -9
2002 2001
30,358 $ 55,121
1,279,552
.1 111
1,339,552
1,369,910
(261,740)
(102,361)
(118,556)
(629,379)
(277,720)
(1,128,016)
4,117
295,885
300,002
280,156
86,043
$ 366,199 $
1,242,610
1,297,731
(191,030)
(109,886)
(171,689)
(592,016)
(261,951)
(1,135,542)
15,942
98,942
114,884
86,043
86,043
1,180,918
217,699
(8,012)
(147,995)
186,197
E:.
KODIAK ISLAND BOROUGH
911 Services Fund
Balance Sheets
June 30, 2002 and 2001
Assets
Assets:
Equity in central treasury
Fund Equity
Fund equity:
Retained earnings, unreserved
Exhibit E -10
2002 2001
S 56.590 S 70.522
S 56,590 S 70,522
KODIAK ISLAND BOROUGH
911 Services Fund
Statement of Revenues, Expenses, Transfers, and
Changes in Retained Earnings
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
2002
Operating revenues:
Customer charges
Operating expenses:
Personnel services
Telephone services
Variance -
favorable
Budget Actual (unfavorable)
$ 69,000 $ 69,520 $ 520 $
10,500 10,500 —
69,000
Operating income (loss) $ —
Retained earnings, at beginning of year
Retained earnings, at end of year
72,952 (14,452)
83,452 (14,452)
(13,932) $ (13,932)
70,522
$ 56,590
Exhibit E -11
2001
Actual
69,078
30,000
30,000
39,078
31,444
70,522
86
KODIAK ISLAND BOROUGH
911 Services Fund
Statements of Cash Flows
Years ended June 30, 2002 and 2001
Operating income (loss)
Net cash provided by operating activities
Net change in cash and cash equivalents
Cash and cash equivalents, at beginning of year
Cash and cash equivalents, at end of year
Exhibit E -12
2002 2001
$ (13,932) $ 39,078
(13,932) 39,078
(13,932) 39,078
70,522 31,444
$ 56,590 $ 70,522
87
KODIAK ISLAND BOROUGH
Kodiak Fisheries Research Center Fund
Balance Sheets
June 30, 2002 and 2001
Exhibit E -13
Assets 2002 2001
Current assets:
Equity in central treasury $ 598,396 $ —
Temporary investments 1,012,919 2,072,156
Customer receivables — 2,170
Accrued interest receivable 9,063 1,943
1,620,378 2,076,269
Fixed assets:
Buildings
17,840,400
17,840,400
Machinery and equipment
1,134,663
1,134,663
Land and improvements
1,021,998
1,021,998
Less accumulated depreciation
(2,227,354)
(1,484,384)
17,769,707
18,512,677
Total
$ 19,390,085 $
20,588,946
Liabilities and Fund Equity
Current liabilities:
Accounts payable
$ 22,505 $
30,031
Deferred revenue
43,745
17,449
Accrued expenses
4,232
4,423
Due to other funds
368,975
1,101,840
439,457
1,153,743
Noncurrent liabilities:
Long -term interfund borrowings
7.130,000
7,370,000
7,569,457
8,523,743
Fund equity:
Contributions in aid of construction
State of Alaska
3,000,000
3,000,000
Other
8,920,540
8,920,540
11,920, 540
11,920,540
Accumulated amortization
(1,192,052)
(794,702)
10,728,488
11,125,838
Contributed capital
215,486
215,486
Retained earnings, unreserved
876,654
723,879
Total fund equity
11,820,628
12,065,203
Total
$ 19,390,085 $
20,588,946
88
KODIAK ISLAND BOROUGH
Kodiak Fisheries Research Center Fund
Statement of Revenues, Expenses, Transfers, and
Changes in Retained Earnings
Budget and Actual
Year ended June 30, 2002
(With comparative totals for 2001)
Exhibit E -14
Amortization of contributions in
aid of construction 397,350
Increase (decrease) in retained earnings $ -
Retained earnings, at beginning of year
Retained earnings, at end of year
397,350 -
152.775 $ 152,775
D O /U,VJ'+
397,351
(10,050)
733,929
$ 723,879
89
2002
Variance
favorable
2001
Budget
Actual
(unfavorable)
actual
Operating revenues:
Rents and royalties
$ 1,499,570 $
1,497,865
$ (1,705) $
1,484,927
Operating expenses:
Personnel services
163,060
152,129
10,931
158,985
Employee benefits
32,000
37,113
(5,113)
36,065
Miscellaneous
101,400
60,533
40,867
51,954
Depreciation
740,330
742,970
(2,640)
744,000
Cleaning and janitorial
47,000
35,170
11,830
41,088
Heating
82,000
86,206
(4,206)
70,375
Electrical
185,500
146,545
38,955
154,590
Plumbing
60,700
14,632
46,068
107,626
Air conditioning
11,000
682
10,318
2,438
Elevators
2,000
2,263
(263)
1,800
Support goods and services
3,150
44
3,106
802
1,428,140
1,278,287
149,853
1,369,723
Operating income
71,430
219,578
148,148
115,204
Other income
Interest income
51,060
55,684
4.624
39,791
Loss on disposal of fixed assets
-
-
-
(27,071)
Income before operating transfers
122,490
275.262
152.772
127,924
Other financing uses:
Operating transfers out to other funds
(519,840)
(519,837)
3
(535,325)
Net loss
(397,350)
(244,575)
152,775
(407,401)
Amortization of contributions in
aid of construction 397,350
Increase (decrease) in retained earnings $ -
Retained earnings, at beginning of year
Retained earnings, at end of year
397,350 -
152.775 $ 152,775
D O /U,VJ'+
397,351
(10,050)
733,929
$ 723,879
89
Exhibit E -15
KODIAK ISLAND BOROUGH
Kodiak Fisheries Research Center Fund
Statements of Cash Flows
Years ended June 30, 2002 and 2001
Operating income
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
Changes in assets and liabilities:
Customer receivables
Due from other funds
Accounts payable
Accrued expenses
Deferred revenues
Due to other funds
Total adjustments
Net cash provided by operating activities
Cash flows from noncapital and related financing activities:
Operating transfers out to other funds
Net cash used for noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets
Principle paid on long -term interfund borrowing
Net cash used for capital and related
financing activities
Cash flows from investing activities:
Net (increase) decrease in investments
Interest received
Net cash provided by (used for) investing activities
Net change in cash and cash equivalents
Cash and cash equivalents, at beginning of year
Cash and cash equivalents, at end of year
Noncash capital and related financing activities:
Loss in disposal of fixed assets
2002
$ 219,578 $
742,970 744,000
2,170
2,908
—
400,000
(7,526)
(91,164)
(191)
16,603
26,296
—
(747,865)
613,847
15,854
1,686,194
235,432
1,801,398
(519,837)
(535,325)
(519,837)
(535.325)
—
(13,222)
(225,000)
(210,000)
(225,000)
(223,222)
1,059,237
(1,322,033)
48,564
40,068
1,107,801
(1,281,965)
598,396
(239,114)
—
239,114
$ 598,396 $
—
$ — $
27,071
2001
115,204
.o
1
1
1
1
1
1
L
11
GENERAL FIXED ASSETS ACCOUNT GROUP
The General Fixed Assets Account Group is a self - balancing
account group which is used to account for the fixed assets of the
Borough other than those recorded in the Enterprise Funds.
KODIAK ISLAND BOROUGH
General Fixed Assets Account Group
Schedules of Fixed Assets by Source
June 30, 2002 and 2001
General fixed assets:
Land
Buildings
Improvements other than buildings
Machinery and equipment
Construction work -in- progress
Total
Investment in general fixed assets:
Capital projects funds:
General obligation bonds
Federal grants
State grants
General fund revenues
Special revenue fund revenues
Contributions from State of Alaska
Contributions from Federal Government
Contributions from others
Total
Exhibit F -1
2002
2001
$ 5,331,188 $
5,362,188
90,440.059
88,783.292
3,730,745
3,700,998
1,905,877
1,117,298
2,757.756
2,357,374
$ 104,165,625 $
101,321,150
$ 59,731,841 $
57,751,151
4,413,937
4,314,864
19,877,521
19,471,040
10,102,633
9.848,382
1,004,219
900,239
3,730,279
3,730,279
1,259,300
1,259,300
4,045,895
4,045.895
$ 104,165,625 $ 101,321,150
a
KODIAK ISLAND BOROUGH
General Fixed Assets Account Group
Schedule of General Fixed Assets by Function and Activity
June 30, 2002
Exhibit F -2
92
Improvements
Machinery
other than
and
Total
Land
Buildings
buildings
equipment
Staff agencies:
Management information systems $
745,593 $
- $
-
$ - $
745,593
General administration
154,988
-
-
-
154,988
Total staff agencies
900,581
-
-
-
900,581
Public safety:
Emergency preparedness
621,595
-
100,000
-
521,595
Fire Protection Area No. 1
1,197,598
241,137
702,633
25,920
227,908
Womens Bay Service Area
629,665
-
425,655
-
204,010
Total public safety
2,448,858
241,137
1,228,288
25,920
953,513
Schools
86,502,808
-
83,673,299
2,829,509
-
Teacher housing
231,560
-
231,560
-
-
General government buildings
5,346,024
-
5,306,912
17,329
21,783
Building sites
360,001
360,001
-
-
-
Playgrounds
717,987
-
-
717,987
-
Other
170,000
-
-
140,000
30,000
93,328,380
360,001
89,211,771
3,704,825
51,783
Undeveloped land
4,730,050
4,730,050
-
-
-
101,407,869
5,331,188
90,440,059
3,730,745
1,905,877
Construction work -in- progress
2,757,756
-
2,658,683
99,073
-
Total general fixed assets $
104,165,625 $
5,331,188 $
93,098,742
$ 3,829,818 $
1,905,877
92
KODIAK ISLAND BOROUGH
General Fixed Assets Account Group
Schedule of Changes in General Fixed Assets by Function and Activity
Year ended June 30, 2002
Total general fixed assets $ 101,321,150 $ 6,184,909 $
Deletions
24,166 $
153,427
24,150
29,844
31,936
7,967
271,490
11,888
11.888
49,888
31,000
1,111,900
1,192,788
Exhibit F -3
General fixed
assets at
745,593
900,581
621,595
1,197,598
629,665
80,JUL,t5U6
231,560
5,346,024
360,001
717,987
170,000
- 4,730,050
1,476,166 101,407,869
1,864,268 2,757,756
3,340,434 $ 104,165,625
93
General fixed
assets at
July 1, 2001
Additions
Staff agencies:
Finance department
$ 24,166 $
- $
Management information systems
249,092
649,928
Assessing department
24,150
-
Community development department
29,844
-
Engineering/facilities department
31,936
-
Land sales
7,967
-
General administration
94,503
60,485
Total staff agencies
461,658
710,413
Public safety:
Emergency preparedness
222,184
399,411
Fire Protection Area No. 1
1,093,618
115,868
Womens Bay Fire District
629,665
-
Total public safety
1,945,467
515,279
Schools
84,070,183
2,432,625
Teacher housing
231,560
-
General government buildings
5,261,718
134,194
Building sites
391,001
-
Playgrounds
710,239
7,748
Other
1,161,900
120,000
91,826,601
2,694,567
Undeveloped land
4,730,050
-
98,963,776
3,920,259
Construction work -in- progress
2,357,374
2,264,650
Total general fixed assets $ 101,321,150 $ 6,184,909 $
Deletions
24,166 $
153,427
24,150
29,844
31,936
7,967
271,490
11,888
11.888
49,888
31,000
1,111,900
1,192,788
Exhibit F -3
General fixed
assets at
745,593
900,581
621,595
1,197,598
629,665
80,JUL,t5U6
231,560
5,346,024
360,001
717,987
170,000
- 4,730,050
1,476,166 101,407,869
1,864,268 2,757,756
3,340,434 $ 104,165,625
93
r
1
J
t
C
GENERAL LONG -TERM DEBT ACCOUNT GROUP
The General Long Term Debt Account Group is a self -
balancing account group which is used to account for unmatured
general long -term debt and other obligations backed by the full faith
and credit of the Borough except those long -term obligations which
are required to be accounted for in the proprietary fund types and
trust funds.
KODIAK ISLAND BOROUGH
General Long -Term Debt Account Group
Schedules of Long -Term Debt
Years ended June 30, 2002 and 2001
Amount available and to be provided for the payment of general
long -term debt:
Amount available in Debt Service Fund:
General obligation bonds
Accrued annual leave
Amount to be provided:
General obligation bonds
Judgments
Environmental Protection Agency loan
Alaska Department of Environmental Conservation loans
Total
General obligation bonds:
1993 bonds
1994 bonds
1998 refunding
2000 Series E bonds
2000 Series F bonds
Other long -term debt:
Judgment payable
Environmental Protection Agency loan
Alaska Department of Environmental Conservation loans
Accrued annual leave
Total
Exhibit G -1
2002 2001
$ 448,065
$
344,942
142,793
113,983
590,858
458,925
16,166,935
17,345,058
2,053,000
1,350,000
52,083
72,919
101,247
105,272
18,373.265
18,873,249
$ 18,964,123
$
19.332,174
$ 3,680,000
$
4,505,000
1,030,000
1,030,000
9,445,000
9,495,000
1,365,000
1,485,000
1,095.000
1,175,000
16,615,000
17,690,000
2,053,000
1,350,000
52,083
72,919
101,247
105,272
142,793
113,983
2,349,123
1,642,174
$ 18,964,123
$
19,332,174
94
ADDITIONAL INFORMATION
BONDED INDEBTEDNESS
The following schedules reflect total bonded indebtedness of the
Borough by bond issue. Each issue outstanding is reflected by date,
interest rate, inclusive bond numbers, and amount of principal and
interest due. Total indebtedness is reflected on a summary page of all
debts not defeased.
Exhibit H -1
KODIAK ISLAND BOROUGH
Summary of Bonded Debt Service Requirements to Maturity
June 30, 2002
Annual principal and interest requirements on General Obligation Refunding and Construction Bonds.
Year Principal Interest Total
2003
$ 1,120,000 $
780,993 $
1,900,993
2004
1,180,000
727,690
1,907,690
2005
1,235,000
669,815
1,904,815
2006
1,295,000
607,785
1,902,785
2007
1,360,000
515,078
1,875,078
2008
1,440,000
469,155
1,909,155
2009
1,505,000
402,605
1,907,605
2010
1,575,000
332,885
1,907,885
2011
1,645,000
259,735
1,904,735
2012
1,360,000
183,180
1,543,180
2013
1,420,000
124,700
1,544,700
2014
1,480,000
63,640
1,543,640
$ 16,615,000 $
5,137,261 $
21,752,261
95
KODIAK ISLAND BOROUGH
General Obligation Bonds, 1993 Series A
Retirement Schedule
1993 Bond Issue
Exhibit H -2
This issue, dated November 15, 1993, was issued as registered bonds under a book entry system registered
in the name of Cede & Company, as Nominee of The Depository Trust Company, New York, New York,
the securities depository for the 1993 Bonds.
This issue was marketed by John Nuveen & Co. Legal opinion was rendered by bond council, Wohiforth.
Argetsinger, Johnson & Brecht of Anchorage, Alaska.
These bonds were issued to build the Northstar Elementary School, remodel the Ouzinkie School, and remodel
and expand the Kodiak Island Hospital. Bonds are payable at First Trust N.A., St. Paul, Minnesota.
Fiscal year
2003
2004
2005
2006
Interest rate
4.4 %n
4.55%
4.75%
4.9%
Interest
Principal
Interest
due
due
due
August 15
February 15
February 15
Total
$ 85,730
$ 860,000 $
85,730 $
1,031,460
66,810
900,000
66,810
1,033.620
46,335
940,000
46,335
1,032,670
24,010
980.000
24,010
1,028,020
$ 222,885
$ 3,680,000 $
222,885 $
4,125.770
96
KODIAK ISLAND BOROUGH
General Obligation Bonds, 1994 Series A
Retirement Schedule
Exhibit H -3
1994 Bond Issue
This issue, dated November 15, 1993, was issued as registered bonds under a book entry system
registered in the name of Cede & Company, as Nominee of The Depository Trust Company, New York,
New York, the securities depository for the 1994 Bonds.
This issue was marketed by John Nuveen & Co. Legal opinion was rendered by bond council, Wohlforth,
Argetsinger, Johnson & Brecht of Anchorage, Alaska.
These bonds were issued to build the Northstar Elementary School, remodel the Ouzinkie School, and remodel
and expand the Kodiak Island Hospital.
Bonds are payable at First Trust N.A., St. Paul, Minnesota.
97
Interest
Principal
Interest
due
due
due
Fiscal year
Interest rate
August 15
February 15
February 15
Total
2003
5.4% $
27,810
$ — $
27,810 $
55,620
2004
5.4%
27,810
—
27,810
55,620
2005
5.4%
27,810
—
27,810
55,620
2006
5.4 %n
27,810
—
27,810
55,620
2007
5.4%
—
1,030,000
27,810
1,057,810
$
111,240
$ 1,030,000 $
139,050 $
1,280,290
97
Exhibit H -4 I
KODIAK ISLAND BOROUGH
General Obligation Refunding Bonds, 1998 Series A
Retirement Schedule
1998 Bond Issue
This issue, dated December 7, 1998, was issued under a book entry system registered in the name
of Cede & Company, as Nominee of The Depository Trust Company, New York, New York, the securities
depository for the 1998 Bonds. The financial advisor for this issue was Kaplan Financial Consulting, Inc. Legal
opinion was rendered by bond council, Birch, Horton, Bittner, and Cherot. The paying agent for this issue was
Alaska USA Trust Company. These bonds were issued to refund all but $1,030,000 of the 1994 bond issue.
This resulted in a total interest savings of $504,859.
T
di
98
Interest
Principal
Interest
due
due
due
Fiscal year
Interest rate
August 15
February 15
February 15
Total
2003
3.75% $
202,584
$ 50,000 $
202,585 $
455,169
2004
4.00%
201,647
55,000
201,647
458,294
2005
4.00%
200,548
55,000
200,547
456,095
2006
4.00%
199,448
60,000
199,447
458,895
2007
4.00%
198,248
60,000
198,248
456,496
2008
4.30%
197,048
1,150,000
197,047
1,544,095
2009
4.30%
172,323
1,200,000
172,322
1,544,645
2010
4.30%
146,523
1,250,000
146,522
1,543,045
2011
4.30%
119,648
1,305,000
119,647
1,544,295
2012
4.30%
91,590
1,360,000
91,590
1,543,180
2013
4.30%
62,350
1,420,000
62,350
1,544,700
2014
4.30%
31,820
1,480,000
31,820
1,543,640
$
1,823,777
$ 9,445,000 $
1,823,772 $
13,092,549
T
di
98
t
t
KODIAK ISLAND BOROUGH
General Obligation Bonds, 2000 Series E
Retirement Schedule
Exhibit H -5
2000E Bond Issue
This issue, dated December 12, 2000, was issued under a book entry system registered in the name
of Cede & Company, as Nominee of the Depository Trust Company, New York, New York, the securities
depository for the 2000 Series E Bond.
This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council,
Wohlforth, Vassar, Johnson & Brecht of Anchorage, Alaska.
This bond was issued to repair the high school roof. The high school roof repair is scheduled to be completed
by the fall of 2001.
Total
191,726
190,788
189,612
193,200
191,312
194,000
191,000
192,750
1
$ 179,194 $ 1,365,000 $ 179,194 $ 1,723,388
99
Interest
Principal
Interest
due
due
due
Fiscal year
Interest rate
August 01
February 01
February 01
2003
4.75% $
33,363
$ 125,000 $
33,363 $
2004
4.75%
30,394
130,000
30,394
2005
4.75%
27,306
135,000
27,306
2006
4.75%
24,100
145,000
24,100
2007
4.88%
20,656
150,000
20,656
2008
5.00%
17,000
160,000
17,000
2009
5.00%
13,000
165,000
13,000
2010
5.00%
8,875
175.000
8,875
2011
5.00%
4,500
180,000
4,500
Total
191,726
190,788
189,612
193,200
191,312
194,000
191,000
192,750
1
$ 179,194 $ 1,365,000 $ 179,194 $ 1,723,388
99
Exhibit H -6 I
KODIAK ISLAND BOROUGH
General Obligation Bonds, 2000 Series F
Retirement Schedule
2000F Bond Issue
This issue, dated December 12, 2000, was issued under a book entry system registered in the name
of Cede & Company, as Nominee of the Depository Trust Company, New York, New York, the securities
depository for the 2000 Series F Bond.
This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council,
Wohlforth, Vassar, Johnson & Brecht of Anchorage, Alaska.
This bond was issued to upgrade Peterson Elementary. The Peterson Project has already been completed.
100
Interest
Principal
Interest
due
due
due
Fiscal year
Interest rate
August 01
February 01
February 01
Total
2003
9.00% $
41,009
$ 85,000 $
41,009 $
167,018
2004
9.00%
37,184
95,000
37,184
169,368 ,
2005
8.35%
32,909
105,000
32,909
170,818
2006
6.90%
28,525
110,000
28,525
167,050 '
2007
7.00%
24,730
120,000
24,730
169,460
2008
7.00%
20,530
130,000
20,530
171,060
2009
7.05%
15,980
140,000
15,980
171,960
2010
7.10%
11,045
150,000
11,045
172,090 '
2011
7.15%
5,720
160,000
5,720
171,440
$
217,632
$ 1,095,000 $
217,632 $
1,530,264 ,
100
LJ
1
L
a
STATISTICAL SECTION
Statistical Tables provide report users with a better historical
perspective in assessing current financial status and trends of
the Borough.
a
1
F,
KODIAK ISLAND BOROUGH
Kodiak, Alaska
General Governmental Expenditures
and Other Uses by Function's'
Last Ten Fiscal Years
Table 1
Fiscal
General
Health and
Other
year
government
sanitation "'
Education "'
transfers
Total
1993
$ 2,955,824 $
674,032
$ 3,374,721 $
137,962
$ 7,142,539
1994
2,555,349
690,430
3,615,695
322,228
7,183,702
1995
2,681,472
1,442,644
3,861,967
164,649
8,150,732
1996
2,941,453
1,390,307
4,678,830
267,594
9,278,184
1997
2,664,204
1,393,016
5,083,942
250,000
9,391,162
1998
2,848,474
1,506,992
6,466,321
571,296
11,393,083
1999
2,733,502
1,179,420
7,044,970
—
10,957,892
2000
2,540,354
730,888
6,500,341
55,905
9,827,488
2001
2,993,718
594,072
6,824,276
323,299
10,735,365
2002
3,027,097
280,847
7,363,880
55,034
10,726,858
(a) Includes general fund only.
(b) Includes operating transfers for this function
Source: Borough general ledger
101
Table 2
KODIAK ISLAND BOROUGH
Kodiak, Alaska
General Revenues by Source "'
Last Ten Fiscal Years
Fiscal
Inter -
year
Taxes
1993 $
4,481,158 $
1994
4,674,382
1995
5,976,914
1996
5,693,539
1997
5,582,037
1998
7,589,595
1999
7.694,387
2000
8,057,781
2001
8,135,184
2002
8.017,344
Licenses,
Inter -
permits
governmental
and fees
revenue
433,825
$ 1,991,730 $
457.895
2,053.750
928,079
1,633,162
285,100
2,396,704
108,483
2,396,272
86,138
2,739,075
86,523
2,055,803
93,609
1,770.038
95,129
2,135,483
95,857
3.397,240
Investment
Operating
income
transfers
289,570 $
— S
291,046
—
659,794
—
452,196
—
371,414
9,672
333,243
—
238,515
33.632
358,351
139,829
583,633
18,154
294,675
200.000
Miscellaneous
revenue
Total
— S
7,196,283
—
7,477,073
—
9,197.949
—
8,827.539
—
8,467,878
—
10,748,051
—
10.107,860
—
10,408.608
44,945
11,012,528
140,901
12,146,017
(a) Includes general fund only.
Source: Borough general ledger
102
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Property Tax Levies and Collections
Last Ten Fiscal Years
Table 3
Source: Borough general ledger
103
Percent of
Percent of
Percent of
current
Delinquent
total tax
Outstanding
delinquent
Fiscal
Total
Current tax
levy
tax
Total tax
collections
delinquent
taxes to
year
tax levy
collections
collected
collections
collections
to tax levv
taxes
taxlevv
1993
$ 4.045 235 $
3.907,612
96.6
$ 60,633 $
3.968,245
98.1
$ 169.584
4.2
1994
4,353.371
4,176.676
95.9
21,295
4,197,971
96.4
193.624
4.4
1995
5,141,728
4.955,108
96.4
56,140
5,011,248
97.5
232.679
4.5
1996
5,466,066
5.249,163
96.0
56,531
5,305,699
97.1
289,210
5.3
1997
5,576,773
5,478,939
98.2
96,490
5,575.429
100.0
192.722
3.5
1998
7,384,490
7,121,678
96.4
77,576
7,199,254
97.5
381.180
5.2
1999
7,704,172
7,575,491
98.3
314,367
7,889,858
102.4
234,738
3.0
2000
7,743.649
7,507,018
%.9
175,066
7.682,084
99.2
316.482
4.1
2001
8,164,127
7,912,859
96.9
204,458
8,117,316
99.4
364,044
4.5
2002
8.411,173
8,313,881
98.8
362.377
8,676.258
103.2
292,823
3.5
Source: Borough general ledger
103
Table 4
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Source: Borough assessment and tax records and State full value determination
Last Ten Years Assessed Values
$800,000,000
$600,000,000
$400,000,000
$200,000,000
104
$0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Ratio of
total
assessed to
Real Property
Personal Property
Total
total
Fiscal
Assessed
Full value
Assessed
Full value
Assessed
Full value
full value
year
value
determination
value
determination
value
determination
determination
1993
$ 467,821,217 $
497.758,375 $
91,537.867
$ 331,544.400 $
559,359,084
$ 829,302,675
6245
1994
499.172.455
517,754,900
92,364,018
325.842.100
591.436.473
843.597,000
70.11
1995
515.954,650
539,053.753
98,616,145
319,052,138
614.570.795
858.105,891
71.62
1996
538.637,500
560,459,900
101.835.076
318,741,600
640.462.576
879,201,500
72.85
1997
549,456,964
565,281.400
104,677,687
312.465.100
654.134,651
877.746,500
74.52
1998
573.742,998
587,145.000
107,599,894
310,049,900
681,342,892
897.194.900
75.94
1999
577,551,709
599.696.900
109,304,683
297,058.600
686,856,392
896.755.500
76.59
2000
594,870 287
613.787.700
120,828.748
323.947.400
715.699.035
936.735.100
76.40
2001
626,906,341
641,419.200
131.849,192
336,548,600
748.755.533
950.967.800
78.74
2002
635,931.458
654,299,600
116.117.602
323,479.600
752.049,060
977.779.200
76.91
Source: Borough assessment and tax records and State full value determination
Last Ten Years Assessed Values
$800,000,000
$600,000,000
$400,000,000
$200,000,000
104
$0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Property Tax Razes and
Contributions to the School District
(per SI00 of Assessed Value)
Last Ten Fiscal Years
Table 5
KHf
City
Fiscal
General
of
Year
Fund
Kodiak
1993
5.50
2.00
1994
5.50
100
1995
6.75
2.00
1996
6.75
2.00
1997
6.75
2.00
1998
9.25
2.00
1999
9.25
100
2000
9.25
2.00
2001
9.25
100
2002
9.25
2.00
Table 5
Contributions to the School District
Fis®1
Property
Tax Rates
%tillage
Year
Value
Contribution
Woodland
1993
S 559,359,084
S 3,864,691
6.91
1994
591,436,473
Acres
6.75
1995
614570,795
3,770,399
6.14
19%
Street
4,574,068
Road Services
Areas
654,134,651
Fire Areas
7.40
Lighting
Monashka
Service
Bar View
Women
Senice
Women
Area
Bav
District 1
Road
Bav
Area No. 1
Bav
0.75
2.00
1.75
1.00
2.50
1.25
1.25
0.75
2.00
1.75
1.00
2.50
1.50
1.25
0.75
1.50
1.75
1.00
2.00
1.50
1.25
0.50
1.75
1.75
1.00
2.00
1.50
125
0.50
1.50
1.75
1.00
2.00
1.50
1.25
0.50
1.50
0.75
1.00
2.00
1.50
1.25
-
1.50
0.50
1.00
2.00
1.50
1.25
-
1.50
0.50
1.00
2.00
1.50
1.25
-
1.50
1.00
1.00
2.00
1.50
1.25
-
1.50
1.25
1.00
2.00
1.50
1.25
Contributions to the School District
Fis®1
Assessed
Amount of
%tillage
Year
Value
Contribution
Equivalent
1993
S 559,359,084
S 3,864,691
6.91
1994
591,436,473
3,990,947
6.75
1995
614570,795
3,770,399
6.14
19%
640,462576
4,574,068
7.14
1997
654,134,651
4,839,887
7.40
1998
681,342,892
5,715,361
8.39
1999
686,856,392
6,492,876
9.45
2000
715,699,035
6,678,652
9.33
2001
748,755533
6,913,926
9.23
2002
752,049,060
7550.506
10.04
Source: Borough ordinance and assessment
105
Table 6
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Ten Largest Property Taxpayers
Year ended June 30, 2002
Source: Borough tax records.
1111"
Percentage
Percentage
of total
Net
of total
assessed
Assessed
taxes
taxes
value
valuation
levied
levied
International Seafoods of Alaska
1.5% $
11,065,508 $
142,736
1.7
Western Alaska Fisheries
1.7%
13,005,141
136,063
1.6%
CSX Lines LLC
1.3%
9,539,545
109,450
1.3%
Ocean Beauty Seafoods Inc.
1.4%
10,294,550
106,433
1.3%
Alaska Pacific Seafoods
1.3%
10,053,751
104,084
1.2%
Wal -Mart
1.2%
9,039,495
102,896
1.2%
Kodiak Fishmeal Company
1.1%
8,106,952
82,022
1.0%
Mill Bay Plaza Assoc LTD
0.9%
7,138,400
80,307
1.0%
Afognak Native Corporation
1.0%
7,835,600
72,822
0.9%
Brechan Enterprises Inc.
0.8%
6,297,365
68,018
0.8%
Totals
12.3% $
92,376,307 $
1,004,831
11.9%
Source: Borough tax records.
1111"
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Ratio of Net General Bonded Debt "'
Last Ten Fiscal Years
Table 7
Sources: Information obtained from assessment records and Borough general ledger except as otherwise noted.
(a) Information obtained from State of Alaska, Department of Community and Regional Affairs, Certified Population for Revenue Sharing Program.
107
Ratio
Net
of net
bonded
Less Debt
bonded debt
debt
Fiscal
Assessed
Gross
Service
Net bonded
to assessed
per
year
Population
value
bonded debt
Fund
debt
value
capita
1993
15,535
$
559,359,084 $
10,470,000 $
5,847,171 $
4.622,829
0.8
S 298
1994
15,245
591,436,473
27,915,000
4.133,559
23,781,441
4.0
1.560
1995
15,575
614,570,795
25,665,000
2.075,768
23.589,232
3.8
1,515
1996
15,400
640,462,576
23.205,000
1,759,644
21.445,356
3.3
1,393
1997
14,058
654,134,651
21,660,000
549.569
21.110.431
3.2
1.502
1998
14,181
681,342,892
20,020,000
432,942
19.587.058
2.9
1.381
1999
13,848
686,856,392
18,910,000
340,159
18.569,841
2.7
1,341
2000
13,989
"
715,699,035
17,025,000
272,651
16,752,349
2.3
1.198
2001
14,028
748,755,533
17.690,000
344,942
17,345.058
2.3
1.236
2002
13,913
752,049,060
16,615,000
448,065
16.166,935
2.1
1,162
Sources: Information obtained from assessment records and Borough general ledger except as otherwise noted.
(a) Information obtained from State of Alaska, Department of Community and Regional Affairs, Certified Population for Revenue Sharing Program.
107
Table 8
Kodiak Island Borough:
General obligation bonds
City of Kodiak:
Revenue bonds
Total
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Computation of Direct and Overlapping Debt
June 30, 2002
$ 18,456,935
$ 18,456,935
(a) Gross debt outstanding less applicable amounts in the Debt Service Funds.
(b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to
valuation of property subject to taxation in reporting unit.
(c) Under Alaska Statutes Title 29, there is no limitation on municipal debt.
Sources: Borough general ledger and City of Kodiak records.
108
Percentage
Kodiak Island
Net debt
applicable to this
Borough
outstanding
governmental
share of
(a)
unit (b)
debt (c)
$ 16,166,935
100% $
16,166,935
2,290,000
100%
2,290,000
$ 18,456,935
$ 18,456,935
(a) Gross debt outstanding less applicable amounts in the Debt Service Funds.
(b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to
valuation of property subject to taxation in reporting unit.
(c) Under Alaska Statutes Title 29, there is no limitation on municipal debt.
Sources: Borough general ledger and City of Kodiak records.
108
Table 9
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Computation of Legal Debt Margin
June 30, 2002
Assessed value
Plus exempt property
Total
$ 752.049.060
1.994.297.545
$ 2.746.346.605
The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions.
Debt capacity is ultimately determined by the voters and the marketplace.
Source: Borough assessment records.
109
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
Fiscal
Ratio of
Interest
Total debt
year
Principal (a)
and fees
service
1993
$ 1,745,833 $
736,357 $
2,482,190 $
1994
1,775,833
690,170
2,466,003
1995
2,270,833
1,760,185
4,031,018
1996
2,480,833
1,386,681
3,867,514
1997
1,565,833
1,239,996
2,805,829
1998
1,660,833
1,141,366
2,802,199
1999
1,915,833
853,652
2,769,485
2000
1,905,833
858,164
2,763,997
2001
2,015,834
746,994
2,762,828
2002
1,095,833
853,543
1,949,376
Total
Ratio of
general
debt service
expenditures
to general
and transfers
expenditures
7,142,539
34.8
7,162,545
34.4
8,150,732
49.5
9,278,184
41.7
9,391,162
29.9
11,393,083
24.6
10,957,892
25.3
9,827,488
28.1
10,735,365
25.7
10,726,858
18.2
(a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of
term bonds.
Source: Borough general ledger and debt documents
110
Table 11
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Demographic Statistics
Last Ten Fiscal Years
Fiscal
year
Population (a)
1993
15,535
1994
15,245
1995
15,575
1996
15,400
1997
14,058
1998
14,181
1999
13,848
2000
13,989
2001
14,028
2002
13,913
Sources:
(a) State of Alaska, DCRA certified population.
(b) Kodiak Island Borough School District
II1� (c) Department of Labor, Anchorage
School
enrollment (b)
2,632
2,802
2,773
2,793
2,809
2.897
2,815
2,798
2,750
2,828
Percentage
Unemployment
rate (c)
6.0
9.4
11.2
13.7
7.7
8.2
6.8
7.2
9.5
8.9
111
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Property Value, Construction and Bank Deposits
last Ten Fiscal Years
*Assessed value.
Source: Borough assessing records, City of Kodiak building department and local bankers.
Table 12
Construction
Deposits
Commercial
Residential
in local
Fiscal
No. of
No. of
Commercial
year
permits
Value
permits
Value
1993
55 $
3,359,264
113 $
6,218,434$
1994
45
2,947,984
146
5,037,061
1995
59
6,055,321
159
4,305,352
1996
41
3,862,599
160
7,864,907
1997
36
1,559,938
112
6,262,439
1998
39
16,676,612
149
8,103,624
1999
51
6,784,879
141
8,222,313
2000
54
2,720,259
156
9,086,074
2001
33
1,379,673
198
11,501,804
2002
30
1,494,337
190
10,439,985
*Assessed value.
Source: Borough assessing records, City of Kodiak building department and local bankers.
Table 12
112
Property Value*
Deposits
in local
banks
Commercial
Residential
Nontaxable
94,838,546 $
134,637,371 $
333,203,846 $
2.027,200,278
98,970,444
148,714,050
350.458.405
2.271.468,957
103,838,289
148,156,300
367,798,350
2.354,550.201
108,116,331
155,755,000
382,872,500
2,404,513,974
108,926,259
157,911,064
391,545,900
2,404,872,414
107,973,700
161,787,264
411,955,734
2,420,596,952
123,206,000
160,921,064
416,630,645
2,420,601,099
120,465,733
172,709,507
422,160,780
2,475,199,399
119,637,923
193,882,996
433.023,355
2,475,199,399
117,241,908
199,689,615
443.305,997
1.994,297,545
112
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Miscellaneous Statistical Data
Last Ten Fiscal Years
Date of Incorporation - September 30, 1963,
Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended,
Form of Government - Mayor /Assembly.
Building permits:
Permits issued
1993
1994
1995
19%
Land area - square miles
7,130
7,130
7,130
7,130
Miles of improved street
21.5
21.6
21.6
21.6
Miles of sanitary sewers
16.7
16.8
16.8
16.8
Number of water taps
877
913
921
921
Number of sanitary sewer taos
858
891
899
899
Building permits:
Permits issued
108
191
218
Value of buildings (thousands)
9,578
4,740
10,360
Fire protection:
Number of fire stations
2
2
2
Number of employees
l
I
I
Police protection - none
Recreation:
Parks - number of acres
223
223
223
Facilities:
Number of playgrounds
15
15
15
Number of swimming pools
1
I
1
Education:
Number of schools:
City of Kodiak Elementary
3
3
3
City of Kodiak Junior High
1
I
1
City of Kodiak High School
1
1
I
Village Schools (a)
9
9
9
Number of personnel: (b)
Administration
5.0
5.0
5.0
Principals
9.5
9.5
11.0
Teachers
172.4
180.0
185.3
Technical
6.5
6.5
6.5
Clerical and Aides
75.3
81.3
73.3
MaintenancelWarehouse
19.1
19.1
19.7
Custodial
21.2
21.7
21.6
Food Service
8.3
8.3
8.5
Total number of personnel
317.3
331.4
330.9
Number of students
2,632
2,802
2,773
Number of municipal employees
67
64
65
Elections:
Number of registered voters
6,654
7,061
7,382
Number voting in last election
2,328
2,634
2,113
Percent of registered voters
35.0%
37.0%
29.0%
(a) The majority of Village Schools are grades K -12.
(b) Based on full time equivalents.
(c) As of July 1, 1996 the City of Kodiak assumed ownership, maintenance,
and operation of the existing water and sewer
utilities in Service District.
Source: Borough records.
201
11,728
2
1
224
16
1
F1
It
6.0
12.0
183.8
3.0
61.7
12.0
22.5
304.7
2,793
63
8,217
1,471
17.9%
113
Table 13
1997
24.7
(c)
(c)
(c)
148
7,822
2
1
224
16
1
4
1
1
9
6.0
11.7
188.5
3.5
63.7
9.0
2,809
63
9,350
2,120
22.7%
1998
24.7
(c)
(c)
(c)
188
24,780
2
1
224
16
1
4
1
1
9
5.2
11.4
179.6
9.0
72.7
10.0
77 A
2,897
50
9,967
2,076
20.8%
1999
2000
7,130
7,130
25.0
25.0
- (c)
(c)
- (c)
(c)
- (c)
(c)
192
210
15,007
11,806
2
2
1
1
224 224
16 16
4
4
1
1
1
1
9
9
5.2
4.2
11.4
10.3
178.1
188.6
9.0
11.1
75.2
78.9
8.0
10.8
30.6
29.0
6.7
10.7
324.2
343.6
2,815
2,798
46
36
10,389
9,935
1,972
2,525
19.0%
25.4%
2001 2002
7,130 7,130
25.6 25.66
(c) (c)
(C) (c)
(c) (c)
231 220
12,881 11,934
2 2
1 1
224 224
16 16
4
4
1
1
1
1
9
8
7.5
7.2
9.5
11.3
200.0
202.6
3.0
4.0
79.5
121.0
15.0
18.0
39.0
32.0
8.0
8.5
361.5
404.6
2,750
2,828
37
10,311
10,08.5
2,521
2,914
24.4%
28.9%
114