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CAFR FY2005KODIAK ISLAND BOROUGH, ALASKA Comprehensive Annual Financial Report July 1, 2004 - June 30, 2005 Ricky Gifford, Borough Manager Prepared by Finance Department Karleton Short, Finance Director KODIAK ISLAND BOROUGH Table of Contents Page Introductory Section Letter of Transmittal I -V GFOA Certificate of Achievement vi Organizational Chart vii Elected Officials (Photographs) viii Borough Officials ix Boards and Cormnittees x -xi Map of Kodiak Island Borough xii Financial Section: Independent Auditors' Report 1-2 Management's Discussion and Analysis 3 -11 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets 12 Statement of Activities 13 -14 Fund Financial Statements: Balance Sheet — Governmental Funds 15 Reconciliation of Net Assets Between the Government -Wide and Fund Financial Statements 16 Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds 17 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 18 Balance Sheet — Proprietary Funds — Business -Type Activities — Enterprise Funds 19 Statement of Revenues, Expenses, and Changes in Fund Equity — Proprietary Funds — Business -Type Activities — Enterprise Funds 20 Statement of Cash Flows — Proprietary Funds — Business -Type Activities — Enterprise Funds 21 -22 Notes to Financial Statements 23 -54 Required Supplementary Information: Schedule of Funding Progress — PERS 55 Budgetary Comparison Schedule — General Fund 56 -57 Budgetary Comparison Schedule — Special Revenue Fund — Facilities 58 Notes to Required Supplementary Information — Budgetary Comparison Schedules 59 Nonmajor Governmental Funds: Combining Balance Sheet 60 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 61 Nonmajor Special Revenue Funds: Combining Balance Sheet 62 -65 KODIAK ISLAND BOROUGH Table of Contents, Continued Page Nonmajor Special Revenue Funds: Combining Balance Sheet 62 -65 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) 66 -69 Schedules of Revenues, Expenditures, Transfers, and Changes in Fund Balances (Deficits) — Budget and Actual: Fire and Road Service Areas: Fire: Fire Protection Area No. 1 70 Women's Bay Fire Department 71 Kodiak Airport Fire District 72 Road: Monashka Bay Road Service Area 73 Service District No. 1 74 Women's Bay Road Service Area 75 Bay View Road Service Area 76 Service Area No. 2 77 Coastal Management 78 Child Care Assistance Program 79 L.E.P.C. 80 Land Sales 81 Buildings and Grounds . 82 Woodland Acres Street Light Service Area 83 Kodiak Arts Council 84 Tourism Development 85 Trinity Acres Lighting District 86 Mission Lake Tide Gate 87 Fern Fuller Trust 88 Trinity Acres Paving 89 Debt Service Funds: Balance Sheet — Other 90 Schedule of Revenues. Expenditures, and Changes in Fund Balances — Budget and Actual — Other 91 Schedule of Revenues, Expenditures, and Changes in Fund Balances (Deficits) — Budget and Actual — Education and Health 92 Nonmajor Capital Projects Fund: Balance Sheet 93 Statement of Revenues. Expenditures and Changes in Fund Deficits 94 Schedule of Capital Projects 95 -96 Enterprise Funds: Municipal Solid Waste Collection and Disposal Fund: Statement of Revenues. Expenses, and Changes in Fund Equity — Budget and Actual 97 1 ' KODIAK ISLAND BOROUGH 1 Table of Contents, Continued Page Hospital Facilities Fund: Statement of Revenues, Expenses, and Changes in Fund Equity — Budget and Actual 98 911 Services Fund: Statement of Revenues, Expenses, and Changes in Fund Equity — Budget and Actual 99 Kodiak Fisheries Research Center Fund: ' Statement of Revenues, Expenses, and Changes in Fund Equity — Budget and Actual 100 Supplementary Schedules: Summary of Bonded Debt Service Requirements to Maturity 101 General Obligation Refunding Bonds, 1998 Series A — Retirement Schedule 102 General Obligation Bonds, 2000 Series E — Retirement Schedule 103 ' General Obligation Bonds, 2000 Series F — Retirement Schedule General Obligation Bonds, 2003 Series A — Retirement Schedule 104 105 General Obligation Bonds, 2004 Series A — Retirement Schedule 106 General Obligation Bonds, 2004 Series B — Retirement Schedule 107 Statistical Section — Fund Information: General Governmental Expenditures and Other Uses by Function — Last Ten Fiscal Years 108 General Revenues by Source — Last Ten Fiscal Years 109 ' Property Tax Levies and Collections — Last Ten Fiscal Years 110 Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years 111 Property Tax Rates and Contributions to the School District — Last Ten Fiscal Years 112 -113 Ten Largest Property Taxpayers 114 Ratio of Net General Bonded Debt to Assessed Value and Net General Bonded Debt per Capita — Last Ten Fiscal Years 115 Computation of Direct and Overlapping Debt 116 ' Computation of Legal Debt Margin 117 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General ' Expenditures and Transfers — Last Ten Fiscal Years Demographic Statistics — Last Ten Fiscal Years 118 119 Property Value, Construction and Bank Deposits — Last Ten Fiscal Years 120 Miscellaneous Statistical Data 121 -122 !J INTRODUCTORY SECTION Kodiak Island Borough Finance Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486 -9320 Fax (907) 486 -9399 December 16, 2005 Members of the Assembly Kodiak Island Borough, Alaska State of Alaska statutes and local charter provisions require that all general- purpose local governments publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United State of America (GAAP) and audited in accordance with auditing standards generally accepted in the United States of America by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Kodiak Island Borough (Borough) for the fiscal year ended June 30, 2005. ■ This report consists of management's representations concerning the finances of the Borough. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the Borough has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Borough's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Borough's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the ' financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Borough's financial statements have been audited by KPMG LLP, a firm of licensed certified public ' accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Borough for the fiscal year ended June 30, 2005, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that 1 the Borough's financial statements for the fiscal year ended June 30, 2005, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. 1] � I Members of the Assembly Kodiak Island Borough, Alaska June 30, 2005 The independent audit of the financial statements of the Borough was part of a broader, state and federally mandated "Single Audits" designed to meet the special needs of state and federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of state and federal awards. These reports are available in the Borough's separately issued Single Audit Report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is designed to complement MD &A and should be read in conjunction with it. The Borough's MD &A can be found immediately following the report of the independent auditors. Profile of the Government 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 and serves a population of 13,811. 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. The Borough provides a full range of services including fire protection, the construction and maintenance of roads and other infrastructure, community and economic development, health and sanitation, culture and recreation and solid waste collection and disposal. The Borough also is financially accountable for a legally separate school district which is reported separately within the Borough's financial statements. Additional information on this legally separate entity can be found in the basic financial statements. The annual budget serves as the foundation for the Borough's financial planning and control. All departments of the Borough are required to submit requests for appropriation to the Borough manager. The Borough manager uses these requests as the starting point for developing a proposed budget. The Borough Manager then presents this proposed budget to the assembly for review by April 30. The assembly is required to hold public hearings on the proposed budget and to adopt a final budget by no later than June 10. The appropriated budget is prepared by fund and department. 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. Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or administrative action. Expenditures may not legally exceed appropriations at the following levels: Capital Projects Funds — project level, all other funds — department level. All funds, except Capital Projects Funds, are budgeted on an annual basis encompassing a fiscal year. Budgets of Capital Projects Funds generally encompass the period from Members of the Assembly Kodiak Island Borough, Alaska June 30, 2005 start-up to project completion, which is generally greater than one year. Budget -to- actual comparisons are provided in this report for each individual governmental and proprietary fund for which an appropriated annual budget has been adopted. For the general fund and facilities special revenue fund. this comparison is presented on pages 56 -58 as part of required supplementary information. For governmental funds, other than the general fund and facilities special revenue fund, this comparison is presented in the governmental fund subsection of this report, which starts on page 60. Also included in the governmental fund subsection are project - length budget -to- actual comparisons for each of the capital projects. For proprietary funds, this comparison is presented in the proprietary funds subsection of this report, which starts on page 97. I Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Borough operates. Local economy. The economic condition of the Kodiak Island Borough remains healthy. The main industries of the Borough are commercial fishing, logging, and tourism. While some segments of the commercial fishing industry have declined, others have grown. There have been large cutbacks in the (' logging industry, which can be attributed back to the slowdown in the Asian economy. Tourism continues to grow in Kodiak with an increased number of visitors each year. To accommodate this demand, construction of fishing lodges, bed and breakfast accommodations and recreational facilities has increased along with an increase in charter boat and guide operations. There has also been an increase in the number of cruise ships visiting Kodiak in the recent years as the cruise ship companies have expanded their tours of Alaska's coastal communities. Relatively new to the Kodiak Island Borough is the aerospace industry, which began with construction of the Kodiak Launch Complex in 1998. Owned by the Alaska Aerospace Development Corporation (AADC), a public corporation of the State of Alaska, the Kodiak Launch complex is the first complete launch facility built in the United States since the 1960's and the first not owned by the Federal Government. The state -of- the -art facility includes a launch control center, payload processing facility, spacecraft assembly building and launch pad. It is designed to handle small to medium sized rockets used to launch low earth orbit satellites, as well as military, scientific and research missions. Kodiak is home to the largest U.S. Coast Guard base in the country, employing nearly 1,400 people and providing vital services to the marine industries that are an integral part of Kodiak's make -up as well as making a significant contribution to the Kodiak community. The Seafood industry is by far the largest industry in the Kodiak Island Borough. This industry includes commercial fishing, fisheries research, management and enforcement, seafood processing, and maintenance and support services. Kodiak is home to the largest port in the State, housing over 700 commercial vessels and consistently ranks among the top ten ports in the United States in terms of amount and value of product delivered. 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 for 2005 was 8.6% percent compared to 9.7 percent in 2004 and 11.2 percent in 2003. Throughout fiscal year 2005, the unemployment rate has fluctuated from 6.8% to 15.3 %, with an average of 11.1 %. H ' Members of the Assembly Kodiak Island Borough, Alaska ■ June 30, 2005 Long -term financial planning. Every year the Borough adopts a five -year strategic plan. In this plan the Borough decides what its' goals and objectives are for the next five years. The Borough breaks these goals out based on our Mandatory and Adopted powers. To view the complete Strategic plan you can visit our web site at www.kib.co.kodiak.ak.us. ■ Cash management policies and practices. Operating funds of the Borough are invested in interest producing instruments in accordance with the Borough's investment code. Cash forecasts are prepared to enhance investment income and reduce market risk by matching investment maturities to anticipated cash flows. Investment income includes appreciation or depreciation in the fair value of investments. Risk management. The Borough maintains an adequate fund balance in the General Fund. plus certain other funds where the liability may arise, to cover potential losses that may not be covered by insurance or the deductible portion of claims that are covered by insurance. In addition, various control techniques, including employee accident prevention training, have been implemented to minimize accident - related losses. Third party coverage is currently maintained for all of the Borough's property and activities. Additional information on the Borough's risk management activity can be found in note 8 of the notes to the financial statements. Pension and other post employment benefits. The Borough participates in the Alaska Public Employees Retirement System (PERS), a defined benefit agent, multiple employer public employee retirement system. PERS was established and is administered by the State of Alaska to provide pension, post employment healthcare, death, and disability benefits to eligible participants. At June 30, 2003 (date of most recent actuarial analysis), the actuarial value of liabilities exceeded the actuarial value of assets by $2.5 million. The Borough also administers a Section 457 deferred compensation arrangement for eligible Borough employees. Additional information on the Borough's pension arrangements and post employment benefits can be found in Note 10 in the notes to the financial statements. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Borough for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2004. This was the sixteenth consecutive year that the Borough has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This 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. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the administration and finance department. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Credit also must be given to the mayor and the assembly for their unfailing support for maintaining the highest standards of professionalism in the management of the Borough's finances. tv � I I I � I Members of the Assembly Kodiak Island Borough, Alaska June 30, 2005 Respectfully submitted, Rick L. Gifford Borough Manager w .4t, A. A'4- Karleton G. Short Director of Finance 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, 2004 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. Q Oi THE �N UMTEO STATES N ANO No WAPGM ` IOM President 1 �0 S ELL �o\S Executive Director vi Kodiak Island Borough Organizational Chart Fiscal Year 2005 ELECTORATE T BOROUGH MAYOR ASSEMBLY >r Kodiak Island Borough PROGRAMMERI ANALYST OPERATIONS SUPERVISOR NETWORK ADMINISTRATOR ASSISTANT FIRE CHIEF ARTS COUNCIL DIRECTOR BOROUGH MANAGER ADMINISTRATIVE ASSISTANT BOROUGH BOROUGH ATTORNEY CLERK ASSISTANT DEPUTY CLERK CLERK COMMUNITY ENGINEERING/ FINANCFIMIS DEVELOPMENT ENVIRONMENTAL FACILITIES ASSESSOR DIRECTOR DIRECTOR SPECIALIST DIRECTOR MAINTENANCE WORKER BALER&ANDFILL SUPERVISOR ASSOCIATE PROPERTY REVENUE GENERAL PLAN ME APPRAISER ACCOUNTANT ACOUNTANT SECRETARY In BALER OPERATOR II ASSOCIATE KFRC ASSESSMENT CASHIER PLArI IVEw'ENF MAINTENANCE CLERK 11 ACOUNTING ENGINEER TECNQACCTS PAYABLE BALER OPERATOR KFRC ASSESSMENT DRAFTING RECEPTIONIST CLERK I SECRETARY III ACOUNINNO TECHNICIAN BALER TECWPAYROLL OPERATORI Projects SECRETARY 111 BALER Engineer CHILD CARE OPERATOR 1 ASSISTANCE ADMIN Proiocls OPERA OR 1 Assistant vii PROGRAMMERI ANALYST OPERATIONS SUPERVISOR NETWORK ADMINISTRATOR MAYOR AND ASSEMBLY MEMBERS Jerome Selby Mayor, 2007 Shawn (Tuck) Bonney Deputy Presiding Officer, At Large, 2005 Tom Abell At Large, 2005 Pat Branson At Large, 2007 Reed Oswalt At Large, 2005 Cecil Ranney At Large, 2006 Nancy Wells At Large, 2005 viii Barbara Williams At Large, 2007 KODIAK ISLAND BOROUGH KODIAK, ALASKA BOROUGH OFFICIALS YEAR ENDED JUNE 30, 2005 MAYOR Jerome Selby `07 ASSEMBLY Tom Abell `05 Patricia Branson `07 Cecil Ranney `06 Barbara Williams `07 MANAGEMENT Tuck Bonney (Deputy Presiding Officer) `05 Reed Oswalt `05 Nancy Wells `05 RickGifford ................................................................................................................. ............................... Borough Manager KarletonG. Short ........................................................................................... ............................... Finance Director/Treasurer Bud Cassidy ................................................................... ............................... ....................Engineering and Facilities Director JudithA. Nielsen, CMC ............................................................................. ............................... ........................Borough Clerk Vacant................................................................................................ ............................... Community Development Director Vacant......................................................................................................................................... ............................... Assessor RobertA. Himes .................................................................................. ............................... ......................Assistant Fire Chief Jamin, Ebell, Schmitt & Mason .............................. ............................... ........................Borough Attorney (Contracted Firm) BettyWalters .......................................................................................... ............................... Superintendent, School District Vacant................................................................................................ ............................... ........................General Accountant CassandraJuenger .................................................................................................... ............................... Revenue Accountant LaurieWhiddon ............................................................................................................ ............................... Purchasing Agent ix I Woodland Acres Street Lighting Service Area Advisory Board VACANT Citizens Board of Equalization Cheryl McNeil Jeff Sanford Tim Hurley Jim Nagan Karenia Hackett Reed Oswalt, Alternate Parks and Recreation Committee Kevin Foster Mike Sirofchuck Jeff Huntley Patrick Saltonstall Hans Tschersich Pam Foreman Murphy Forner Robert Greene Heather Turner Wayne Biessel, State Rep., ex- officio Ian Fulp, City Rep., ex- officio Elizabeth Odell, KIBSD Rep. x Building Code Board of Appeals (Architectural Review Board) Scott Arndt Jerrol Friend Gregg Hacker Charlie Jerling Jay Johnston Brent Watkins Reed Oswalt, Assembly Rep. Bob Tucker, KIBSD Rep., ex- officio Barry Still, School Board Rep, ex officio Bud Cassidy, KIB Rep., ex- officio Personnel Advisory Board William King Brian Beck Pam Foreman Lauri Whiddon, KIB staff Fire Protection Area No. 1 Advisory Board * Scott Arndt Dave Billings Cliff Davidson Greg Spalinger Robert Himes, ex- officio Sharon Lea Adinolfi, KIB staff Bav View Road Service Area Advisory Board Dawn Black Jim Schauff Reed Oswalt Fred Roberts Service Area No. 2 Commission INACTIVE Monashka Bav Road Service Area Advisory Board Darlene Turner Andrew Devries Chaz Glagolich Bruce McNeil David Sundberg School Board Scott Arndt Roy Brown Jeff Stephan Elizabeth Odell Norm Wooten CDR Virginia Cameron, USCG Rep. Sheila Roberts - Staff Jordan Rodgers, Student Rep. Betty Walters, KIBSD, ex- officio Planning and Zoning Commission Dr. Gary A. Carver Jerrol Friend Casey Janz David King 1 Dennis McMurry Reed Oswalt Brent Watkins Woodland Acres Street Lighting Service Area Advisory Board VACANT Citizens Board of Equalization Cheryl McNeil Jeff Sanford Tim Hurley Jim Nagan Karenia Hackett Reed Oswalt, Alternate Parks and Recreation Committee Kevin Foster Mike Sirofchuck Jeff Huntley Patrick Saltonstall Hans Tschersich Pam Foreman Murphy Forner Robert Greene Heather Turner Wayne Biessel, State Rep., ex- officio Ian Fulp, City Rep., ex- officio Elizabeth Odell, KIBSD Rep. x Building Code Board of Appeals (Architectural Review Board) Scott Arndt Jerrol Friend Gregg Hacker Charlie Jerling Jay Johnston Brent Watkins Reed Oswalt, Assembly Rep. Bob Tucker, KIBSD Rep., ex- officio Barry Still, School Board Rep, ex officio Bud Cassidy, KIB Rep., ex- officio Personnel Advisory Board William King Brian Beck Pam Foreman Lauri Whiddon, KIB staff Fire Protection Area No. 1 Advisory Board * Scott Arndt Dave Billings Cliff Davidson Greg Spalinger Robert Himes, ex- officio Sharon Lea Adinolfi, KIB staff Bav View Road Service Area Advisory Board Dawn Black Jim Schauff Reed Oswalt Fred Roberts Service Area No. 2 Commission INACTIVE Monashka Bav Road Service Area Advisory Board Darlene Turner Andrew Devries Chaz Glagolich Bruce McNeil David Sundberg Service Area No. I Advisory Board Kevin Arndt Scott Arndt Charles Lorenson Ed Mahoney Greg Spalinger Peggy Tuttle Womens Bay Service Area Advisory Board Chris Lynch Craig Breitung David Conrad Edward Gondek John Isadore Spencer Schaeffer Dale L. Rice, ex- officio Airport Advisory Committee William King Lynda Ross Robert Green, ex- officio CDR John Furman, USCG ex- officio Lt. Steve Raney, USCG ex- officio Borough Clerk's Office, KIB staff Aimort Fire Protection District AdvisoryB Vacant Arts Council Advisory Committee Vacant Mission Lake Tide Gate Service Area Board Bill Hinkle Norm Sutliff Trinity Islands Subdivision Street Light Service Area Board Jennifer Wandersee *41 ARCFIC OCEAN P BARROW .?A w PRUDHOE SAY J >' ZINKI COAAK /IKA;R E HINIAK AKH10K a KODIAK d' ISLAND 4 BOROUGH C '� N ` b l Y • R � 0. o ,o NORTH PACIFIC OCEAN CANADA KOTZEBUE NOME Q?� NORTON SOUND FAIRBANKS ALASKA {. ANCHORAGE VALDEZ BETHEL KENA ' � E DILLINGHAM SEWARD , Y GULF OF AMSR'A SRISI'OL SAY KODIAK ISLAND N ` b l Y • R � 0. o ,o NORTH PACIFIC OCEAN CANADA FINANCIAL SECTION KPMG LLP Suite 600 701 West Eighth Avenue Anchorage, AK 99501 Independent Auditors' Report The Honorable Mayor and Members of the Assembly ' Kodiak Island Borough: We have audited the accompanying financial statements of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Kodiak Island Borough, Alaska, as of and for the year —ended June 30, 2005, which collectively comprise the Borough's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Kodiak Island Borough, Alaska's management. Our responsibility is to express opinions on these 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 opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the 1 respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the Kodiak Island Borough, Alaska, as of June 30, 2005, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in note 10 to the financial statements, in 2005 the Borough adopted Governmental I Accounting Standards Board Statement No. 45, Accounting and Financial Reporting by Employers for Postemplovment Benefits Other Than Pensions. In accordance with Government Auditing Standards, we have also issued our report dated September 30, 2005 on our consideration of the Kodiak Island Borough, Alaska's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. KPMG LLP, a U.S. limited liability partnership, is the U.S. member firm of KPMG International, a Swiss cooperative. The Honorable Mayor and Members of the Assembly Kodiak Island Borough The management's discussion and analysis on pages 3 through 11, the schedule of funding progress for PERS on page 55 and the budgetary comparison information on pages 56 through 59 are not a required part t of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures. which consisted principally of inquiries of management regarding the methods of measurement and presentation ' of the required supplementary information. However, we did not audit the information and express no opinion on it. ' Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Kodiak Island Borough, Alaska's basic financial statements. The accompanying supplementary information, including the introductory section, supplemental information, supplementary 1 schedules and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplemental information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section, t supplementary schedules and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. ' L O >MC, LOP ' September 30, 2005 r u I1 KODIAK ISLAND BOROUGH Management's Discussion and Analysis June 30. 2005 As management of the Kodiak Island Borough, we offer readers of these financial statements this narrative overview and analysis of the financial activities of the Kodiak Island Borough for the fiscal year —ended June 30, 2005. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i - v of this report. Financial Highlights • The assets of the Kodiak Island Borough exceeded its liabilities at the close of FY2005 by $138.821.236. Of this amount, $37,788,247 (unrestricted net assets) may be used to meet the Borough's ongoing ' obligations to citizens and creditors. • In FY2005 the Borough's total net assets decreased by $2,231,230. ' 0 At the end of the current fiscal year, the Borough's governmental funds reported combined fund balances of $63,368,369, an increase of $20,215,348 in comparison with the prior year. At the end of the FY2005, unreserved fund balance for the general fund was $1,813,013, 16% of total general fund expenditures. ' • The Borough's total debt increased by $18,395,894 during FY2005. This is due to a general obligation bond issuance of $20,350,000. ' Overview of the Financial Statements Government -wide Financial Statements ' The government -wide financial statements are designed to provide readers with a broad overview of the Kodiak Island Borough's finances, in a manner similar to a private- sector business. The statement of net assets presents information on all of the Kodiak Island Borough's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Kodiak Island Borough is improving or deteriorating. ' The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Both of the government -wide financial statements distinguish functions of the Kodiak Island Borough that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the Kodiak Island Borough include general government, fire services, emergency preparedness, community and economic development, health and sanitation, culture and recreation, maintenance and operations, service district maintenance and education. The business -type activities of the Kodiak Island Borough include a solid waste disposal and treatment facility, a Borough —owned hospital, a 911 emergency system and the Kodiak Fisheries Research Center. The government -wide financial statements include not only the Kodiak Island Borough itself (known as the primary government). but also the legally separate school district for which the Kodiak Island Borough is financially accountable. Financial information for this component unit is reported separately from the financial information presented for the primary government itself. 3 (Continued) KODIAK ISLAND BOROUGH I Management's Discussion and Analysis June 30. 2005 The government -wide financial statements can be found on pages 12 -14 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Kodiak Island Borough, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All of the funds of the Kodiak Island Borough can be divided into two categories: governmental funds and proprietary funds. Governmental Funds — Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Kodiak Island Borough maintains 33 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues. expenditures, and changes in fund balances for the general fund, the facilities special revenue fund, and the education and health debt service fund, which are all considered to be major funds. Data from the other nonmajor funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in the supplementary information section of this report. The Kodiak Island Borough adopts an annual appropriated budget for its general fund, special revenue funds, and debt service funds. Budgetary comparison statements have been provided for the funds to demonstrate compliance with this budget. The basic governmental financial statements can be found on pages 15 -18 of this report. Proprietary Funds — The only proprietary fund type that the Kodiak Island Borough uses is enterprise funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. Proprietary funds provide the same type of information as government -wide financial statements, only in more detail. The Kodiak Island Borough uses enterprise funds to account for a solid waste disposal and treatment facility, a Borough -owned hospital leased to the Sisters of Providence d.b.a. Providence Alaska Medical Center. 911 phone charges and expenses, and rents and utilities of the Borough -owned Kodiak Island Fisheries Research Center. The Kodiak Island Borough adopts an annual appropriated budget for its proprietary funds. Budgetary comparison statements have been provided for the funds to demonstrate compliance with the budget. The basic proprietary fund financial statements can be found on pages 19 -22 of this report. f 4 (Continued) ': KODIAK ISLAND BOROUGH Management's Discussion and Analysis June 30. 2005 Notes to the Financial Statements — The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 23 -54 of this report. Other Information — In addition to the basic financial statements and accompanying notes. this report also presents certain required supplementary information concerning the Kodiak Island Borough's progress in funding its obligation to provide pension benefits to its employees and budgetary comparison schedules for the general fund and facilities special revenue fund. Required supplementary information can be found on pages 55 -59 of this report. Government -wide Financial Analysis Statement of Net Assets As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the Kodiak Island Borough assets exceeded liabilities by $138,821.236 at the close of the most recent fiscal year. The largest portion of the Kodiak Island Borough's net assets ($101,032,989 or 73 %) reflects its investment in capital assets (e.g. land, buildings, equipment, and infrastructure) net of related debt. The Kodiak Island Borough uses these capital assets to provide services to citizens; consequently, these capital assets are not available for future spending. Although the Borough's investment in capital assets is reported net of debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. For more detailed information see page 12 of the statement of net assets. The remaining balance of unrestricted net assets. $37.788,247, may be used to meet the Borough's ongoing obligations to citizens and creditors. 5 (Continued) Governmental Business -type activities activities Total 2005 2004 2005 2004 2005 004 Current and other assets S 60.501.959 40.528.562 5,599,369 4,852,098 66.101,328 45,380,660 Capital assets 75.876,951 78,306.477 41.148.995 43262,618 117.025,946 121.569,095 Total assets $ 136,378.910 118,835,039 46,748.364 48.114.716 183.127,274 166.949,755 Long -term liabilities $ 33.698,409 14.488,102 4.284.141 4.206,526 37.982,550 18,694,628 Other liabilities (3.525.900) (3.224.199) 9.849.388 10.426.860 6.323,488 7.202,661 Total liabilities S 30.172.509 11.263,903 14.133.529 14.633.386 44.306,038 25,897.289 Net assets: Invested in capital assets. net of related debt S 61.154.204 63.818.375 39.878.785 42.000.495 101.032.989 105.818.870 Unrestricted 45.052.197 43.752.761 (7.263.950) (8.519.165) 37.788.247 35.233.596 Total net assets S 106.206.401 107.571.136 32.614.835 33.481.330 138.821.236 141.052.466 For more detailed information see page 12 of the statement of net assets. The remaining balance of unrestricted net assets. $37.788,247, may be used to meet the Borough's ongoing obligations to citizens and creditors. 5 (Continued) KODIAK ISLAND BOROUGH , Management's Discussion and Analysis June 30. 2005 Statement of Activities The following condensed table of changes in net assets displays the revenues and expenses for the current and prior year. Governmental activities decreased the Kodiak Island Borough's net assets by $1,364,735. The key element of this decrease is: • Expenditures exceeded revenues. primarily due to depreciation expense of $2.765,511. 6 (Continued) Governmental activities Business -type activities Total 005 25U 2005 2004 2005 2004 Revenues: Program revenues: Charges for services $ 466.120 548,433 5,888.596 5.663.035 6.354.716 6211.468 Operating grants and contributions 721,453 1.107.826 - 1.305 721.453 1.109.131 Capital grants 2,917,160 389,371 - - 2,917.160 389.371 General revenues: Property taxes 9.063,729 8,016,323 - - 9,063,729 8,016.323 Investment earnings 1,750,321 1,004,215 70.812 23.977 1,821.133 1.028,192 Severance taxes 1,005.539 799.693 - - 1.005,539 799.693 Grants and entitlements not restricted to specific programs 2.384,538 2,461,527 - - 2.384,538 2.461.527 Other 55.692 227.774 - - 55.692 227.774 Total revenues 18.364,552 14.555.162 5.959,408 5.688.317 24.323,960 20.243.479 Expenses: General government 3.466,289 2,626.429 - - 3.466.289 2.626.429 Emergency preparedness 25,850 51.255 - - 25.850 51.255 Community and economic development 509.680 536.111 - - 509.680 536.111 Health and sanitation 365,072 370.434 - - 365,072 370.434 Education. culture. and recreation 185.993 217.759 - - 185,993 217,759 Fire services 491,172 336.389 - - 491,172 336.389 Maintenance and operations 3.175.997 829,046 - - 3.175.997 829,046 Service district maintenance 347,934 425.712 - - 347,934 425,712 Fern Fuller Trust 22.547 24,500 - - 22.547 24.500 Education 10.207.757 10.120.359 - - 10.207,757 10,120,359 Interest on long -term debt 1.101.598 638.192 - - 1.101,598 638.192 Municipal solid waste collection - - 3.362.348 3.051.127 3.362.348 3.051.127 Hospital facilities - - 1,344.987 2.669.144 1.344.987 2,669,144 911 services - - 69.178 80.427 69,178 80,427 Kodiak fisheries research center - - 1,878.788 1.800.972 1,878.788 1,800,972 Total expenses 19.899.889 16.176.186 6,655.301 7.601.670 26,555,190 23.777,856 Change in net assets before transfers (1.535,337) (1,621.024) (695.893) (1.913,353) (2.231,230) (3,534.377) Transfers 170.602 1.644.560 (170.602) (1.644.560) - - Change in net assets (1.364.735) 23.536 (866.495) (3.557.913) (2,231.230) (3.534377) Net assets. beginning of year 107.571.1 36 107.547.600 33.481.330 37.039.243 141.052.466 144,586.843 Net assets. end of year $ 106.206,401 107.571.136 32.614.835 33,481.330 138.821.236 141.052,466 Governmental activities decreased the Kodiak Island Borough's net assets by $1,364,735. The key element of this decrease is: • Expenditures exceeded revenues. primarily due to depreciation expense of $2.765,511. 6 (Continued) KODIAK ISLAND BOROUGH Management's Discussion and Analysis June 30, 2005 Business -type activities decreased the Kodiak Island Borough's net assets by $866,495. Part of this decrease resulted from the transfer of $170,602 to governmental funds. The proprietary funds had an operating loss of $695,893 before transfers. 2005 Program Revenue vs. Expense by Governmental Activities Interest on Long -Term Debt Education Fern Fuller Trust Service District Maintenance ■expenses (in Maintenance and millions) Operation Fire Services ■program revenue (in millions) Education, Culture and Recreation Health and Sanitation Community Development Emergency Preparedness General Government 0 1 2 3 4 5 6 7 8 9 10 For more detailed information see pages 13 -14 of the statement of activities. 7 (Continued) KODIAK ISLAND BOROUGH , Management's Discussion and Analysis June 30, 2005 Financial Analysis of the Government's Funds As noted earlier, the Kodiak Island Borough uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental Funds — The focus of the Kodiak Island Borough's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Kodiak Island Borough's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Kodiak Island Borough's governmental funds reported combined ending fund balances of $63,368,369, an increase of $20,215,348 in comparison to the beginning of the year. $55,277,547 of this total amount constitutes unreserved fund balance, of which $749,999 is designated for subsequent year expenditures and $54,527,548 is undesignated. The remaining $8,090,822 of fund balance is reserved for long -term interfund borrowings. The general fund is the main operating fund of the Kodiak Island Borough. At the end of the current fiscal year, unreserved fund balance of the general fund was $1,813,013. As a measure of the general fund's liquidity, it may be useful to compare fund balance to total expenditures. Unreserved fund balance represents 16% of total general fund expenditures. The fund balance of the Kodiak Island Borough's general fund decreased by $296,483 during the current fiscal year. The key factor leading to this decrease was an increased level of school district funding. The facilities fund had a total fund balance of $37,774,332, $29,683,510 of which is unreserved. Fund balance increased $229,823 during the year because amounts transferred out were less than investment earnings. Proprietary Funds — The Kodiak Island Borough's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Fund equity of the municipal solid waste collection and disposal fund amounted to $3,160,795, the hospital facilities fund amounted to $18,291,176, the 911 services fund amounted to $32,644, and the Kodiak Fisheries Research Center fund amounted to $11,130,220. F1 (Continued) ' KODIAK ISLAND BOROUGH ' Management's Discussion and Analysis June 30, 2005 The total decrease in net assets for municipal solid waste collection and disposal was $184,861, for the hospital ' facilities fund was $362,172, for the 911 services fund was $42,457, and for the Kodiak Fisheries Research Center was $277,005. Other factors concerning the finances of these four funds have already been addressed in the discussion of the Kodiak Island Borough's business -type activities. Ij Municipal Solid Hospital 911 Service Kodiak Fisheries Waste Facilities Research Center ■ program revenue (in millions) ■ expenses (in millions) ' General Fund Budgetary Highlights Differences between the original budget and final amended budget can be briefly summarized as follows: • The revenue budget for Federal PILT (payment in lieu of tax) was increased by $92,090. • The revenue budget for raw fish tax was reduced by $20,000. • The revenue budget passport fees were increased by $20,000. • The expenditure budget of the Manager's Department was increased by $150,000. This was due to the termination of the manager and the costs incurred in hiring a new manager and paying for an interim manager. • The expenditure budget of the Borough Attorney's budget was reduced by $50,000. This was due to lower legal expenses than originally budgeted for. • The expenditure budget of the Management Information Services budget was increased by $125,000. This was to consolidate all computer — related maintenance expenses into one department. Other departments were reduced by this same amount. • The expenditure budget in the Assessing Department was reduced by $50,000. This savings was due to a vacant position. • The expenditure budget of the Community Development Department was reduced by $100,000 due to vacant positions and a reduction in contracted services. • The expenditure budget of the General Administration budget was increased by $40,000. This was to account for writing off more debt to bad debt expense. • The expenditure budget of the School District Support Department was increased by $88,030. This was for increased funding to the School District. 9 (Continued) KODIAK ISLAND BOROUGH Management's Discussion and Analysis June 30. 2005 Differences between the final amended budget and actual can be summarized as follows: • Real and personal property taxes were $15,063 under budget. • Payment in lieu of taxes by the federal government was $11,963 over budget. • The Borough Attorney's department was $25,690 under budget. • The Finance Department was $40,374 under budget. • Management Information Services was $24,172 over budget. • Assessing was $23,676 under budget. • Community Development was $4,792 over budget. • Economic Development was $26,518 under budget. • School District Support was $85,625 over budget. Capital Asset and Debt Administration Capital Assets — The Kodiak Island Borough's investment in capital assets for its governmental and business — type activities as of June 30, 2005 amounted to $117,025,946 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, improvements other than buildings, machinery and equipment, and construction work -in- progress. The total net decrease in the Kodiak Island Borough's investments in capital assets for the current fiscal year was $4,543.149 which was mostly due to current year depreciation. The following table displays the capital assets (net of depreciation) for the current year. Additional information on the Kodiak Island Borough's capital assets can be found in note 5 on pages 33 -37 of this report. Long -term Debt — At the end of the current fiscal year, the Kodiak Island Borough had total bonded debt outstanding of $32,965,000. This entire amount is backed by the full faith and credit of the Borough. The remainder of the Kodiak Island Borough's debt represents capital leases and landfill closure and post - closure costs. (Continued) I Governmental Business -type activities activities Total 2005 2004 2005 2004 2005 2004 Artwork $ — — 16.091 16,091 16.091 16.091 Land 23.187,184 23,187,184 1,661.499 1,661,499 24.848.683 24,848,683 Construction work -in- progress 3.883,844 3.547,859 191,389 101,104 4.075,233 3,648.963 Buildings and improvements 44.830.648 47.103.166 33.129,473 34.599.409 77.960.121 81,702.575 Improvements other than buildings 1.511,241 1.695,200 1219.044 3.238,155 4,730.285 4.933.355 Equipment 336,161 501.126 1.629.760 2.231,114 1.965.921 2.732.240 Infrastructure 2,127.873 2.271.942 — — 2.127.873 2.271.942 Unclassified plant in service — — 1.301.739 1.415.246 1.301.739 1.415.246 $ 75.876,951 78.306.477 41.148.995 41262.618 117.025.946 121.569.095 Additional information on the Kodiak Island Borough's capital assets can be found in note 5 on pages 33 -37 of this report. Long -term Debt — At the end of the current fiscal year, the Kodiak Island Borough had total bonded debt outstanding of $32,965,000. This entire amount is backed by the full faith and credit of the Borough. The remainder of the Kodiak Island Borough's debt represents capital leases and landfill closure and post - closure costs. (Continued) I KODIAK ISLAND BOROUGH Management's Discussion and Analysis June 30. 2005 The following table displays the long -term debt for the current year: The Kodiak Island Borough's total debt increased $18,502,767 during the current fiscal year. This increase was due to primarily to the issuance of general obligation bonds for school construction in the amount of $20,350,000. During 2005, Fitch Investors Service reaffirmed the Borough's credit rating of A-. Borough general obligation bonds are insured to a AAA rating at the time of issuance. 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. Additional information on the Kodiak Island Borough's long -term debt can be found in note 7 on pages 41-47 of this report. Economic Factors and Next Year's Budgets and Rates • At June 30, 2005, the unemployment rate for the Kodiak Island Borough was 9.5 %, which is 1.1% lower than one year ago. The state's unemployment rate was 6.5% at June 30, 2005. • Property tax revenues received are projected to increase in future years as the Kodiak Island Borough's assessed valuation continues to increase. Requests for Information This financial report is designed to provide a general overview of the Kodiak Island Borough's finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Kodiak Island Borough. Director of Finance; 710 Mill Bay Road; Kodiak, Alaska 99615. Governmental Business -type activities activities Total 2005 2004 2005 2004 2005 2004 General obligation bonds. including premium S 33.080.509 14.385.000 — — 33.080.509 14,385.000 EPA loan — 10.417 — — — ] 0.417 ADEC loans 88,243 92.685 — — 88.243 92,685 Capital lease obligations — — — 185.970 — 185.970 Landfill post closure care costs — — 3.013.931 2,758.433 3.013.931 2,758433 Long term interfund borrowings — — 1.490.822 8.421.492 1.490.822 8,421,492 Notes payable — — 1,270.210 1.262.123 1.270,210 1.262,123 $ 33,168,752 14.488,102 5.774.963 12.628.018 38.943.715 27,116,120 The Kodiak Island Borough's total debt increased $18,502,767 during the current fiscal year. This increase was due to primarily to the issuance of general obligation bonds for school construction in the amount of $20,350,000. During 2005, Fitch Investors Service reaffirmed the Borough's credit rating of A-. Borough general obligation bonds are insured to a AAA rating at the time of issuance. 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. Additional information on the Kodiak Island Borough's long -term debt can be found in note 7 on pages 41-47 of this report. Economic Factors and Next Year's Budgets and Rates • At June 30, 2005, the unemployment rate for the Kodiak Island Borough was 9.5 %, which is 1.1% lower than one year ago. The state's unemployment rate was 6.5% at June 30, 2005. • Property tax revenues received are projected to increase in future years as the Kodiak Island Borough's assessed valuation continues to increase. Requests for Information This financial report is designed to provide a general overview of the Kodiak Island Borough's finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Kodiak Island Borough. Director of Finance; 710 Mill Bay Road; Kodiak, Alaska 99615. KODIAK ISLAND BOROUGH Statement of Net Assets June 30. 2005 (With summarized financial information for June 30. 20(13) Assets Equity in central treasury Temporary investments Other cash and cash equivalents Due from primary government Receivables: Accounts and other receivables, net State of Alaska Federal government Property taxes, net of allowance of $15,828 Severance taxes Deferred charges Inventories Land sales contracts receivable Notes receivable Capital assets: Not being depreciated Being depreciated, net Total Liabilities and Net Assets Liabilities: Accounts payable Retainages payable Accrued compensation and related liabilities Other accrued liabilities Customer deposits Unearned revenues Due to component units Internal balances Noncurrent liabilities: Due within one year Due in more than one year Net pension and OPEB obligation Total liabilities Net assets: invested in capital assets. net of related debt Unrestricted Net assets Total See accompanying notes to financial statements. I? Component Primary government unit Total reporting entity Governmental Business -tvpe School activities activities Total district 2005 2004 $ 1,360.588 359,908 1.720.496 - 1.720.496 1.496.600 57,096.653 4.520,730 61,617383 - 61.617,383 41,230.895 - - - 57.229 57.229 23.973 - - - 3,758,892 3,758.892 4.160.903 324,523 341.724 666.247 464,977 1.131224 1.642.339 463,204 100,000 563.204 989,670 1.552,874 1.505.696 6,355 - 6,355 190.162 196.517 225.586 352,850 - 352.850 - 352,850 372.481 273,391 - 273.391 - 273,391 - 41,478 - 41.478 - 41.478 - - 277,007 277,007 349,639 626,646 581,019 42,272 - 42.272 - 42.272 50.056 540.645 - 540.645 - 540.645 - 27.071.028 1.868,979 28,940,007 - 28.940,007 28.513,737 48.805,923 3M80,016 88.085.939 136.142 88.222,081 93,159,327 S 136,378.910 46.748.364 183.127.274 5.946,711 189.073,985 172.962,612 S 486.228 336.068 822,296 245.755 1.068,051 1,158.425 22.270 - 22,270 - 22.270 22,270 22,610 32.262 54.872 2,620.482 2,675.354 2,689,747 351,456 420,292 771.748 - 771,748 528,280 1.203 - 1,203 - 1.203 678 37,763 854.444 892,207 11,979 904,186 1,310,935 3,758.892 - 3.758,892 - 3,758.892 4.160,903 (8,206.322) 8.206322 - - - - 1.993,393 - 1,993.393 261.880 2.255,273 1.731,707 31, 348.119 4,284,141 35,632.260 424,518 36.056.778 17,332,799 356,897 - 356.897 242.345 599.242 - 30,172,509 14,133.529 44.306,038 3.806,959 48.112,997 28,935,744 61,154.204 39,878.785 101.032,989 136.142 101.169.131 105,922,839 45.052.197 (7.263.950) 37.788.247 2,003.610 39,791,857 38,104,029 106.206.401 32.614.835 138.821.236 2.139,752 140,960.988 144,026,868 S 136,378.910 46.748.364 183.127 274 5.946,711 189,073,985 172,962,612 See accompanying notes to financial statements. I? KODIAK ISLAND BOROUGH Statement of Activities Year ended June 30, 2005 (With summarized financial information for the year ended June 30, 2004) Functions/Programs Expenses Primary government: Governmental activities: General government $ 3,466,289 Emergency preparedness 25,850 Community and economic development 509,680 Health and sanitation 365,072 Education, culture, and recreation 185,993 Fire services 491,172 Maintenance and operations 3,175,997 Service district maintenance 347,934 Fern Fuller trust 22,547 Education 10,207,757 Interest on long -term debt 1,101,598 Total governmental activities 19,899,889 Business -type activities: Municipal solid waste collection and disposal 3,362,348 Hospital facilities 1,344,987 911 services 69,178 Kodiak fisheries research center 1,878,788 Total business -t a activities 6 655 301 Program revenues Operating Charges for grants and Capital services contributions grants 161,621 21,886 56,704 14,244 191,665 20,000 4b6,11U 3,141,856 1,153,333 26,721 1,566,686 18,001 1,805 75,425 142,668 2,917,160 2,917,160 Jr J,VV - Total primary government $ 26,555,190 6,354,716 721,453 2,917,160 Component units: School district $ 33,466,016 226,645 5,004,756 — Totals – component units $ 33,466,016 226,645 5,004,756 — General revenues: Property taxes Severance taxes Grants and entitlements not restricted to specific programs Investment earnings Support from primary government Other Transfers Total general revenues and transfers Change in net assets Net assets, beginning of year Net assets, end of year See accompanying notes to financial statements. I � 13 1 1 Net (expense) revenue and changes in net assets Primary government Component Governmental Business -type unit school activities activities Total district n (3,304,668) - (3,304,668) (7,849) - (7,849) (485,989) - (485,989) (289,647) - (289,647) (129,289) - (129,289) (334,260) - (334,260) (67,172) - (67,172) (327,934) - (327,934) (22,547) - (22,547) (10,207,757) - (10,207,757) ( 618,044) - (618,044) (15,795,156) - (15,795,156) Total reporting entity 2005 2004 - (3,304.668) (2,438.531) - (7,849) (13,318) - (485,989) (421,840) - (289,647) (300,917) - (129,289) (163,921) - (334.260) (318,659) - (67,172) (241,911) - (327,934) (405,712) - (22,547) 567.467 - (10,207,757) (10,102,338) - (618,044) (290,876) - (15,795,156) (14,130,556) 14 - (220,492) (220,492) (220,492) 158,649 (191,654) (191,654) - (191,654) (1,875.615) - (42,457) (42,457) - (42,457) 21,008 - (312,102) (312,102) - (312,102) (241,372) - (766,705) (766,705) - (766,705) (1,937,330) (15,795,156) (766,705) (16,561,861) - (16,561,861) (16,067,886) (28.234,615) (28,234,615) (24,791,671) (28,234,615) (28,234,615) (24,791,671) ' 9,063,729 - 9,063,729 ,063,7_9 - 9,063,7..9 8,016,323 1,005,539 - 1,005,539 - 1,005,539 799,693 2,384,538 - 2,384,538 18,429,664 20,814,202 20,091,852 1,750,321 70,812 1,821,133 165 1,821,298 1,028,362 - - 8,332,440 8,332,440 7,995,040 55,692 - 55,692 637,696 693,388 423,606 170,602 (170,602) - - - - 14,430,421 (99,790) 14,330,631 27.399,965 41,730,596 38,354,876 (1,364,735) 107,571,136 (866,495) 33,481,330 (2,231,230) 141,052,466 (834,650) 2,974,402 (3,065,880) 144,026.868 (2,504,681) 146,531,549 $ 106,206,401 32,614,835 138,821,236 2.139,752 140,960,988 144,026.868 14 1 1 KODIAK ISLAND BOROUGH Balance Sheet Governmental Funds i June 30. 2001 (With summarized financial information for June 30. 2004) ' Education Various Schoolbond Other and borough capital governmental Totals Assets General Facilities health projects projects funds 2005 2004 Assets: Equity in central treasury $ - - - 157.172 187.220 1.016.196 1360.588 1.123.592 Temporary investments 5.939.370 29.208.884 993.130 496.565 18.446.005 2.012.699 57.096.653 37.495.147 Receivables: Accounts and other receivables. net 27.284 237.724 12.419 1.578 20.413 25.105 324.523 1.097.188 State of Alaska 60.848 - 133.494 - - 268.862 463.204 382.948 Federal government - - - - - 6.355 635i 6.750 Property taxes. net of allowance of $15.828 338.371 - - - - 14.479 352.850 372.481 Severance taxes 273.391 - - - - - 273391 Land sales contracts - - - - - 8.000 8.000 50.056 Notes receivable - - - 53.374 53.374 Due from other funds - 372.799 - 301.650 1.913.866 93.244 2.681.559 739.629 Notes receivable, due after one year - - - - - 487.271 487.271 - Land sales contracts, due after one year - - - - - 34.272 34.272 Advances to other funds - 8.090.822 - - - - 8.090.822 8.421.492 , Total $ 6.639,264 37.910.229 1.139.043 956.965 20.567.504 4.019.857 71232.862 49.689.683 Liabilities and Fund Balances f Liabilities: Accounts payable $ Retainages payable 346.117 - - - - - 1.050 6.670 132.391 486.228 639.781 ' Accrued compensation - - 22.270 22.270 22.270 and related liabilities 22.454 - - - - 156 22.610 13.060 € Customer deposits - - - - - 1.203 1.203 678 Unearned revenues 292.595 115.500 - - - 599.136 1.007.231 1.045.741 Due to component unit 3.758.892 - - - - - 1.758.892 4 160 903 ' Due to other funds 406.193 20.397 1.487.276 - - 652.193 2.566.059 654.229 Long -term interfund advances - - - Total liabilities 4.826251 135,897 1.487276 1.050 6.670 1.407.349 7.864.493 6.536.662 Fund balances: Reserved: Long -term interfund - borrowings - 8.090.822 - - - - 8.090.822 8.421.492 Unreserved: General fund: Designated for subsequent year expenditures 606.323 - - - - - 606.323 768.207 Undesignated 1.206.690 - - - - - 1.206.690 1,341.289 Special revenue funds: Designated for self - insurance - - - - - - - - Designated for subsequent year expenditures - - - - - 143.676 143,676 256.860 Undesignated - 29.683.510 - - - 2.414.916 32.098.426 31,536.646 ' Debt service funds: Undesignated - - (348.233) - - 158.409 ( 19_ 2, 324 f Capital projects funds: Undesignated - - - 955,915 20.560,834 (104.493) 21.412.256 636,203 Total fund balances 1.813.013 37.774.332 (348233) 955.915 20.560.834 2.612.508 63.368.369 43.153,021 ' Total $ 6.639.264 37.910.229 1.139.043 956.965 20.567.504 4.019,857 71,232.862 49.689.683 See accompanying notes to financial statements. 1 KODIAK ISLAND BOROUGH Reconciliation of Net Assets Between the Government -wide and Fund Financial Statements Year ended June 30. 2005 Amount reported as fund balance on the governmental funds balance sheet Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Long -term receivables, delinquent property taxes and loans are not available to pay for current- period expenditures and, therefore, are deferred in the funds: Property taxes Accrued interest income Note receivable Land sales contracts Long -term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds: General obligation bonds payable Bond premium Debt issuance costs ADEC loans Net pension and OPEB obligation Accrued interest expense Compensated absences Net assets of governmental activities See accompanying notes to the financial statements. S 63.368.369 75.876.951 $ 254,832 115,500 556,864 42,272 969,468 (32,965,000) (115,509) 41,478 (88,243) (356,897) (351,456) (172,760) (34,008,387) $ 106,206,401 16 Revenues: Property taxes Intergovernmental: State sources Federal sources Land sale proceeds Severance taxes Licenses. permits. fees. and other local revenues Other Investment income Total revenues Expenditures: Current: General government Fire services Emergency preparedness Community and economic development Health and sanitation department Education. culture. and recreation Maintenance and operations Service district maintenance Primary and secondary education Fern Fuller trust Capital outlay: Schools General Debt service: Principal Interest Bond issuance costs Total expenditures Excess of revenue over (under) expenditures Other financing (uses) sources: Proceeds from sale of bonds Bond premium Transfers in Transfers out Net other financing (uses) sources Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Fund balances. at beginning of year Fund balances. at end of the year See accompanying notes to financial statements. KODIAK ISLAND BOROUGH Statement of Revenues. Expenditures. and Changes in Fund Balances Governmental Funds Year ended June 30. 2005 (With summarized financial information for the vear ended June 30. 2004) 17 1 I r Education Various School bond Other and borough capital governmental Totals General Facilities health projects projects funds 2005 2004 $ 8.373.277 - - - - 690.452 9.063.'29 8.016323 800.495 - 942.687 - - 426.621 2.169,803 2 _.1 2 _1.4 2 _0 1.124.910 - - 2.399.055 - 329.383 3.853.348 1.245.337 - - - - - 22.738 2 _2.738 9.206 1.005.539 - - - - - 1.005.539 799.693 161.621 - - 540 - 530.379 692.140 764,913 - - 747 - - 75.094 7i.841 222.837 265.392 1.114.071 11.236 6.057 323.311 52.826 1.772.893 866.143 11.731.234 1.114.071 954.670 2.405.652 323.3,11 2.127.493 18.656.431 14.045.87 2.713.633 - - - - - 2 _.713.633 2.118.166 - - - - - 425.506 425,506 864.703 5.428 - - - - 18.093 23.521 48.755 443,876 - - - - 65.804 509.680 536.111 254.313 - - - - 75.425 329.738 331,884 127,335 - - - - 58.658 185.993 217.759 - - - - - 698.119 698.119 567.094 - - - - - 347.934 347.934 425.712 7.973.035 - - - - - 7.973.035 7.721.706 - - - - - 22.547 22.547 24.500 - - - - 55.392 12.717 68.109 131.324 - - - 2.460.376 - 511.798 1972.174 656.423 - - 1.784.859 - - - 1.784.859 1.260.167 - - 983.195 - - 1,571 984.766 644.046 - 43.661 - - 43.661 - 11.5 17,620 2.811.715 2.460.376 55.392 2.238.172 19.083.275 15.548.350 213.614 1.114.071 (1.857.045) (54.724) 267.919 (110.679) (426.844) (1.502.478) - - - - 20.350.000 - 20.350.000 - - - 118.830 - 2.760 - 121.590 - - - 1.356.067 216.508 - 227.637 1,800.212 3,605.614 (510.097) (884,248) - (235.265) (1.629.610) (1.961.054) (510.097) (884.248) 1.474.897 216.508 20.352.760 (7,628) 20.642.192 1.644.560 (296.483) 229.823 (382.148) 161.784 20.620.679 (118,307) 20.215,348 142.082 2.109.496 37.544.509 33.915 794.131 (59.845) 1730.815 43,153.021 43.010.939 $ 1.813.013 37.774.332 (348.233) 955.915 20.560.834 2.612.508 63.368.369 43,153,021 17 1 I r ' KODIAK ISLAND BOROUGH Reconciliation of the Statement of Revenues. Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended June 30. 2005 Net change in fund balance — total governmental funds S 20.215.348 ' Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets ' is allocated over their estimated useful lives and reported as depreciation expense: Capital outlay $ 335,985 Depreciation expense (2,765.511) (2.429.526) Revenues in the statement of activities that do not provide current current financial resources and are deferred in the funds: ' Change in interest income accrual (2 2.5722) Donations (35.103) (57.675) Revenues in the funds that were earned in a prior year and provide current financial resources: Land sale proceeds (7.784) The issuance of long -term debt provides current financial resources to governmental funds, while the repayment of the principal of long -term debt consumes the current financial resources of governmental funds. Neither transaction. however. has any effect on net assets. Also. governmental funds do not report the accrual of interest expense on debt when it is not payable from currently available resources: Change in interest expense accrual Principal repayments Bond premium Debt issuance costs New issuance of general obligation bonds Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Net pension and OPEB obligation Compensated absences Change in net assets of go activities See accompanying notes to financial statements. (120.730) 1.784,859 (115.510) 41.479 (20,350,000) (18.759.902) (356.897) 31.701 (325.196) $ (1.364.735) 18 KODIAK ISLAND BOROUGH Balance Sheet Proprietary Funds - Business -type Activities - Enterprise Funds June 30. 2005 (With summarized financial information for June 30. 2004) See accompanying notes to financial statements R Municipal Kodiak Other Solid Waste Fisheries Nonmajor Collection and Hospital Research Enterprise Totals Assets Disposal Facilities Center Fund 2005 2(104 Current assets: Equity in central treasury $ 186,993 140.271 - 32.644 359.908 373.008 Temporary investments 2,056.045 - 2,464,685 - 4.520.730 3.735.748 Accrued interest receivable 23,292 - 3.721 - 27,013 25.694 Customer receivables 314,711 - - - 314,711 340,641 Due from other funds - 11.974 - - 11,974 426.004 Accounts receivable - State of Alaska 100,000 - - - 100,000 100,000 Total current assets 2,681,041 152.245 2,468.406 32,644 5,33.1.336 5.001.095 Inventories - 277.007 - - 277,007 277,007 Capital assets, net 5,430,175 20.209,161 15,509,659 - 41.148.995 43,262.618 Total noncurrent assets 5,430,175 20.486.168 15,509.659 - 41,426.002 43.539,625 Total $ 8,111,216 20,638,413 17,978,065 32,644 46.760.338 48.540.720 Liabilities and Fund Equities Current liabilities: Accounts payable $ 301,910 1,971 32.187 - 336.068 308,293 Deferred revenue - 854.444 - - 854,444 1,287.776 Accrued compensation and related liabilities 24,716 - 7,546 - 32,262 26,345 Other accrued liabilities 339,654 - 80,638 - 420,292 297,554 Current portion of capital lease obligations - - - - - 185.970 Current portion of advances from other fund - 57,919 290,000 - 347,919 330,670 Due to other funds - - 127,474 - 127.474 511,404 Total current liabilities 666,280 914,334 537,845 - 2,118,459 2,948,012 Noncurrent liabilities: Notes payable 1,270,210 - - - 1,270,210 1,262,123 Capital lease obligations - - - - - - Advances from other fund - 1,432,903 6,310,000 - 7,742,903 8,090.822 Accrual for landfill closure and postclosure costs 3,013,931 - - - 3,013.931 2,758.433 Total noncurrent liabilities 4,284,141 1,432.903 6,310,000 - 12.027,044 12.111,378 Total liabilities 4,950,421 2,347,237 6,847,845 - 14,145,503 15,059,390 Fund equities: Invested in capital assets, net of related debt 4,159,965 20,209.161 15.509.659 - 39,878,785 41,814,525 Unrestricted (999,170) (1.917.985) (4,379.439) 32,644 (7.263.950) (8,333,195) Total fund equities 3.160,795 18,291.176 11,130,220 32.644 32,614,835 33.481.330 Total $ 8.111.216 20.638.413 17,978.065 32,644 46.760.338 48,540.720 See accompanying notes to financial statements R KODIAK ISLAND BOROUGH Statement of Revenues. Expenses, and Changes in Fund Equity Proprietary Funds - Business -Type Activities - Enterprise Funds Year ended June 30. 2005 (With summarized financial information for the year ended June 30. 2004) I See accompanying notes to financial statements. 20 Municipal Kodiak Other Solid Waste Fisheries Nonmajor Collection and Hospital Research Enterprise Totals Disposal Facilities Center Fund 2005 2003 Operating revenues: Solid waste collection 5 2,184,612 - - - 1 ,184,612 2.251,245 Solid waste disposal 956,087 - - - 956.087 951.789 Rents and royalties - - 1,566.686 - I 1,566.686 1.559.600 State sources - revenue sharing - - - - - - Charges for services /customer charges - - - 26.721 26,721 101,435 Lease income - 1,153,333 - - 1,153.333 792,224 Donations - - - - - 1.305 Other 1.157 - - - 1,157 6.742 Total operating revenues 3,141.856 1,153,333 1,566,686 26.721 5,888,596 5.664.340 Operating expenses: Personnel services 596.385 6,969 169.219 3,000 775,573 668,792 Employee benefits - - 57,098 - 57,098 45.445 Solid waste collection I,418,830 - - - 1,418,830 1.324.943 Refuse disposal 355,995 - - - 355,995 230,639 Contracted services 207,282 - - - 207,282 179.939 Repairs and maintenance 35,505 19,360 - - 54,865 309,332 Landfill closure and postelosure costs 255,498 - - - 255,498 246.929 Depreciation 208,330 1.238,064 793,562 - 2,239,956 2,266,361 General and administration 153,555 10,810 324,768 - 489,133 189,442 Miscellaneous - - 67,328 - 67328 80,774 Telephone services - - - 66,178 66.178 71.427 Recycling services 73.001 - - - 73,001 68.506 Contributions 9,853 - - - 9,853 5.445 Total operating expenses 3,314,234 1,275,203 1,411.975 69,178 6.070.590 5,687,974 Operating income (loss) (172,378) (121,870) 154,711 (42,457) (181,994) (23,634) Nonoperating revenues (expenses): Loss on disposal of fixed assets - - - - - - Contributions to the State of Alaska - - - - - (1 170 000) Contributions to Providence Hospital - - (130,000) Investment income 35,631 84 35,097 - 70.812 23,977 Interest expense (48,114) (69.784) (466,813) - (584.711) (613,696) Loss before transfers (184,861) (191,570) (277,005) (42,457) (695,893) (1,913,353) Transfers in - 125,000 - - 125,000 - Transfers out - (295.602) - - (295,602) (1.644,560) Change in fund equity (184,861) (362,172) (277,005) (42,457 (866,495) (3,557,913) Fund equity, at beginning of year 3.345,656 18.653.348 11,407,225 75,101 33,481,330 37,039,243 Fund equity, at end of year S 3,160,795 18.291,176 11,130,220 32.644 32.614,835 33,481,330 I See accompanying notes to financial statements. 20 KODIAK ISLAND BOROUGH Statement of Cash Flows Proprietary Funds - Business -Type Activities - Enterprise Funds Year ended June 30. 2005 ( With summarized financial information for the vear ended June 30. 2004 ) Cash flows from operating activities Cash received from customers Payments to suppliers Payments to employees Internal activity - payments to /from other funds Net cash provided (used) by operating activities Cash flows from noncapital financing activities: Borrowing (repayment to) from central treasury Transfers in Transfers out Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities: Acquisition and construction of capital assets Interest paid on notes payable, capital leases, and interfund borrowings Proceeds from long -term interfund borrowing Principal payments on long -term interfund borrowing Proceeds from issuance of notes payable Principal payments on capital lease obligation Net cash provided (used) by capital and related financing activities Cash flows from investing activities: Interest and dividends on investments Net increase in investments Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, at beginning of year Cash and cash equivalents, at the end of year See accompanying notes to financial statements. Municipal Kodiak Other Solid Waste Fisheries Nonma,jor Collection and Hospital Research Enterprise Totals Disposal Facilities Center Fund 2005 2004 S 3.130.568 720,000 1.574,097 63.939 5.488.604 5,534.065 (2,086.347) (28.358) (395.166) (137.605) (2.647.476) (2,353,890) (589.076) (6.969) (227.709) (3.000) (826.754) (714.238) 321.420 (210.882) 3.680 - 114,218 (435.418) 776.565 473.791 954,902 (76.666) 2,128,592 '_.030.519 (96.092) - 11.974 - (84.118) 96.092 - 125.000 - - 125.000 - - (295,602) - - (295.602) (1.644.560) (96,092) (170.602) 11.974 - ( (1,548.468) (103.451) (22,882) - - (126.333) (2 72.784) - (69,784) (466,813) - (536.597) (566,132) - - - - - 1.600.000 - (55.670) (275.000) - (330.670) (308,508) 8.087 - - - 8.087 20.869 - (185.970) - - (185.970) (316.388) (95.364) (334,306) (741,813) - (1.171.483) 157.057 12,339 84 57,070 - 69,493 21,516 (410.455) - (374.527) - (784.983) (673,292) (398.116) 84 (317.457) - (715.489) (650.776) 186.993 (31.033) (92,394) (76.666) (13.100) (11,668) - 171.304 92,394 109,310 373,008 384.676 S 186.993 140,271 - 32.644 359,908 373.008 I � I - See accompanying notes to financial statements. KODIAK ISLAND BOROUGH Statement of Cash Flows Proprietary Funds – Business -type Activities – Enterprise Funds Near ended June 30. 2005 ( With summarized financial information for the sear ended June 30. 2004) Municipal Kodiak Other Solid Waste Fisheries Nonmajor Collection and Hospital Research Enterprise Totals Disposal Facilities Center Fund 200 2M4 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (172.378) (121,870) 154.711 (42.457) 081.9941 (23.634) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 208.330 1,238.064 793.562 — 2.239,956 2.266.361 Changes in assets and liabilities that provided (used) cash: Customer receivables (11.288) — — 37.218 25.030 )62.804) Due to /from other funds 321,420 (210.882) 3.680 — 114.218 (435.418) Accounts payable 100.461 1.811 (3,070) (71.427) 27.775 33.530 Deferred revenues — (433332) — — (433.332) (67.471) Accrual for landfill closure and postclosure costs 255,498 — — — 255,498 246.929 Accrued compensation and related liabilities 7.309 — (1.392) — 5,917 (1) Other accrued liabilities 67.213 — 7.411 — 74.624 73.027 Net cash provided (used) by operating activities $ 776.56 473.791 954.9 (76.66 2.128.5 '_.030.5 Noncash capital and related financing activities: Interest $ 48.114 — — — 48.114 47.504 See accompanying notes to financial statements. KODIAK ISLAND BOROUGH Notes to Financial Statements June 30, 2005 (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 accounting principles generally accepted in the United States of America, 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 government —wide 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. Discretely Presented Component Unit The Borough has delegated the operating responsibility for public education to the Kodiak Island Borough School District (School District). In accordance with statutes, the Borough retains ownership of the education related fixed assets and incurs the debt, if necessary, to finance the acquisition and construction of school facilities. The Borough Assembly approves the total annual budget of the School District and may, during the year, increase or decrease the total appropriation. 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 (b) Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the activities of the primary government and its component unit. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from the legally separate component unit for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 23 (Continued) J 1 'J KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds, if applicable. are reported as separate columns in the fund financial statements. (c) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period except for grant revenues which are recognized when the related expenditure is incurred irrespective of when the cash is received. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. The government reports the following major governmental funds: The general fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The facilities fund accounts for the proceeds from the sale of Shuyak Island. The single most 1 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 debt service — education and health fund was established to finance and account for the payment of interest and principal on all general obligation debts, serial and term, other than that payable exclusively from special assessments and revenue debt issued for and serviced by a government enterprise fund. The various borough projects fiuid accounts for general government construction projects not accounted for in other funds. 1 24 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30, 2005 The school bond capital projects ficnd accounts for the construction and major maintenance activities for the Borough's educational facilities funded by school bonds. The government reports the following major proprietary funds: The municipal solid waste collection and disposal firnd accounts for the collection and disposal of solid waste and recycling services for the Kodiak Island Borough. The hospital facilities fiend 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 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. Private - sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private- sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private- sector guidance. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between various functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services and lease revenues. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first. then unrestricted resources as they are needed. 25 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 (d) Assets, Liabilities, and Fund Equity Cash and 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 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. 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 1 authorized investments and reporting. The pool is incorporated in the State of Alaska as a nonprofit corporation and reports to its board of directors. Alaska Statute 37.23.050 requires the retention of an investment manager. The manager is required to produce monthly disclosure statements to the pool. The pool has also retained an investment advisor to ensure compliance with investment policies. All participation in the pool is voluntary. The pool must maintain a dollar- weighted average maturity of 90 days or less, ' and only purchase instruments having remaining maturities of 397 days or less. On a monthly basis, the investments in the pool are reviewed for fair value by an independent pricing service. 1 All highly liquid investments, excluding restricted assets, with original maturities of 90 days or less are considered to be cash equivalents. For purposes of the statements of cash flows, equity in central treasury held by enterprise funds is treated as cash equivalents. Investments for the government, as well as the component unit, are reported at fair value, as determined by quoted market prices. The reported value of the pool is the same as the fair value of the pool shares. Receivables and Payables Activity between funds that is representative of lending /borrowing arrangements outstanding at the end of the fiscal year is referred to as either "due to /from other funds" (i.e., the current portion of interfund loans) or "advances to /from other funds" (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as "due to /from other funds." Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." Internal balances used to acquire capital assets are eliminated from the invested in capital assets, net of related debt, portion of net assets. Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. 26 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30, 2005 Inventories and Prepaid Items Expendable operating supplies of the Borough are accounted for using the purchase method. There are no significant amounts of such inventories on hand at year —end. All of the hospital facilities fund inventory is assigned to Providence as of April 21, 1997 which, by the terms of the lease agreement for the hospital facilities (see note 9), are required to be returned to the Borough at the termination of the lease in at least equal value. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, street lights, and similar items including those acquired prior to fiscal years ended after June 30, 1980), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the Borough as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. There was no interest capitalized during the year. Property, plant, and equipment of the primary government are depreciated using the straight —line method over the following estimated useful lives: Buildings and improvements 1040 years Improvements other than buildings 10 -15 years Equipment 5 -10 years Infrastructure 40 years Compensated Absences It is the Borough's policy to permit employees to accumulate earned but unused annual leave benefits. All annual leave pay is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. 27 (Continued) I KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 — Long -Term Obligations 11 In the government -wide financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type balance sheet. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Interest on long -term obligations is recorded as an expenditure when due. ' Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts ' that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. (e) Revenues, Expenditures, and Expenses 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. 28 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30, 2005 Taxes Severance T a 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 , 3 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. E 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. Operating and Nonoperating Revenue Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result form providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the municipal solid waste collection and disposal fund and 911 services fund are charges to customers for services. The principal operating revenues of the hospital facilities fund and the Kodiak Fisheries Research Center fund are rents from customers. Operating expenses for proprietary funds include costs of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 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 accrual basis. Other local revenues are recorded on a basis consistent with their nature in relation to measurement ' and availability standards. (f) 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. 29 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 (g) 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, and accrued landfill closure and post - closure care costs. (2) Stewardship, Compliance, and Accountability (a) Excess of Expenditures /Expenses over Appropriations /Budgets General Fund The following department expenditures exceeded their appropriations: Department Excess Community development $ 4,792 Building official 7.602 General and administration 27,701 School district support 85,625 Management information systems 24,172 $ 149,892 Enterprise Funds The following fund expenses exceeded their budget: Fund Municipal Solid Waste $ Collection and Disposal 911 Services 178 $ 175.712 Excess 175,534 30 (Continued,) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 Special Revenue Funds The following fund expenses exceeded their budget: Fund Kodiak Airport Fire District Women's Bay Road Service Area Bay View Road Service Area Woodland Acres Street Light Service Area Kodiak Arts Council Trinity Acres Paving Excess $ 3.296 1,889 625 475 1.748 194,593 $ 202,626 (b) Deficit Fund Equity The significant individual fund deficits at June 30, 2005 are as follows: Special Revenue Funds: Trinity Acres Paving $ 216,733 Capital Project Funds: State Capital Grants 104.493 The deficit in the Trinity Acres Paving Fund will be funded by a special assessment beginning in 2006. Management intends to fund the State Capital Grants Fund deficit in fiscal year 2006 through transfers. (3) Cash and Investments As of June 30, 2005, the Borough had the following investments: Investment ty U.S. agency securities: Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Mortgage Corporation Federal National Mortgage Association Alaska Municipal League Investment Pool t 31 (Continued) Investment maturities (in years) Fair Less value than 1 1 to 5 5 to 10 $ 2,979,390 2,979,390 — — 17.930,350 7,979,710 9,950.640 — 7,936,800 4,936,800 3.000,000 — 21,906,750 14.904,520 7,002 230 — 10,864,093 10,671.936 — 192,157 $ 61,617,383 41,472,356 19,952,870 192,157 t 31 (Continued) I Ci KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 Interest Rate Risk The Borough does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk 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, bankers' acceptances. repurchase agreements, and such other legal security instruments. The Borough Code requires all investments to be collateralized and/or insured. At June 30, 2005, the Borough's U.S. agencies bonds were rated AAA by Standard & Poor's and Fitch Ratings, and Aaa by Moody's Investor Service. At June 30, 2005, the Borough's investment in the Alaska Municipal League Investment Pool was unrated. Concentration of Credit Risk The Borough places no limit on the amount the Borough may invest in any one issuer. At June 30, 2005, ' the Borough had 82 percent of its investments in U.S. government agency securities. Custodial Credit Risk — Deposits 1 In the case of deposits. this is the risk that in the event of a bank failure. the Borough's deposits may not be returned to it. The Borough requires all deposits to be insured or collateralized. At June 30, 2005, the carrying amount of the Borough deposits was $1,772,694 and the corresponding bank balance was $1,911,223. 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 $1,811,223. Collateral, in the amount of $11,354,899, is held by the Bank of New York, the pledging financial institution's agent, in the Borough's name. ' Custodial Credit Risk — Investments For an investment, this is a risk that, in the event of the failure of the counterparty, the Borough will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Borough had no debt securities exposed to custodial credit risk at June 30, 2005. t L (4) 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. 32 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 (5) Capital Assets Capital asset activity for the year —ended June 30, 2005 was as follows: Beginning Ending balance Increase Decrease balance Governmental activities: Capital assets, not being depreciated: Land $ 23,187,184 — — 23,187,184 Construction work -in- progress 3,547,859 335,985 — 3,883,844 Total 26,735,043 335,985 — 27,071,028 Capital assets, being depreciated: Buildings and improvements 90,579,601 — — 90.579,601 Improvements other than buildings 3,964,683 — — 3,964,683 Equipment 2,002,568 — — 2,002,568 Infrastructure 5,762,722 — — 5,762,722 Total 102,309,574 — — 102,309,574 Less accumulated depreciation for: Buildings and improvements 43,476,435 2,272,518 — 45,748',953 Improvements other than buildings 2,269,483 183,959 — 2,453,442 Equipment 1,501,442 164,965 — 1,666,407 Infrastructure 3,490,780 144,069 — 3,634,849 Total 50,738,140 2,765,511 — 53,503,651 Total capital assets being depreciated 51,571,434 (2,765,511) — 48,805,923 Total governmental activities, net $ 78,306,477 (2,429,526) — 75,876,951 33 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 34 (Continued) Beginning Ending balance Increase Decrease balance Business -type activities: Municipal solid waste collection and disposal fund: Capital assets, not being depreciated: Land $ 1,651,248 — — 1.651,248 Construction work - in- process 22.358 67,403 — 89,761 Total 1,673,606 67.403 — 1,741.009 Capital assets, being depreciated: Unclassified utility plant in service 2,178,733 — — 2,178,733 Improvements other than buildings 2,288,438 — — 2.288,438 Machinery and equipment 1,277,296 36,048 — 1,313,344 Total 5,744,467 36,048 — 5,780,515 Less accumulated depreciation for: Unclassified utility plant in service 763,487 47,531 — 811,018 Improvements other than buildings 216,886 65,976 — 282,862 Machinery and equipment 902,646 94.823 — 997,469 Total 1,883,019 208,330 — 2,091,349 Total capital assets, being depreciated, net 3,861,448 (172,282) — 3,689,166 Total municipal solid waste collection and disposal fund, net $ 5.535.054 (104,879) — 5.430.175 34 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 35 (Continued) Beginning Ending balance Increase Decrease balance Hospital facilities fund: Capital assets, not being depreciated: Artwork $ 16,091 — — 16.091 Land 10,251 — — 10,251 Construction work -in- process 78,746 22,882 — 101.628 Total 105,088 22,882 — 127.970 Capital assets, being depreciated: Buildings 27,131,043 — — 27,131.043 Improvements other than buildings 401,046 — — 401,046 Machinery and equipment 4,831,961 — — 4,831.961 Total 32,364,050 — — 32.364.050 Less accumulated depreciation for: Buildings 7,400,553 875,107 — 8,275,660 Improvements other than buildings 87,046 (15,895) — 71,151 Machinery and equipment 3,557,196 378,852 — 3,936.048 Total 11,044,795 1,238,064 — 12,282.859 Total hospital facilities fund, net $ 21,424,343 (1,215,182) — 20,209.161 Kodiak Fisheries Research Center Fund Capital assets, being depreciated: Buildings $ 17,840,410 — — 17,840,410 Improvements other than buildings 1,021,998 — — 1,021,998 Machinery and equipment 1,157,540 — — 1,157,540 Total 20,019,948 — — 20,019,948 Less accumulated depreciation for: Buildings 2,971.481 594,840 — 3,566,321 Improvements other than buildings 170,334 34,067 — 204,401 Machinery and equipment 574.912 164,655 — 739,567 Total 3.716,727 793,562 — 4,510.289 Total Kodiak Fisheries Research Center Fund, net $ 16,303,221 (793.562) — 15,509.659 35 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 Total business -type activities: Capital assets, not being depreciated: Artwork Land Construction work -in- process Total Capital assets, being depreciated: Unclassified utility plant in service Buildings Improvements other than buildings Machinery and equipment Total Less accumulated depreciation for: Unclassified utility plant in service Buildings Improvements other than buildings Machinery and equipment Total Total capital assets being depreciated, net Total business -type activities, net Beginning balance Decrease Ending $ 16,091 — — 16.091 1.661.499 — — 1,661.499 101,104 90.285 — 191.389 1.778,694 90.285 — 1,868.979 2,178,733 — — 2,178.733 44,971.454 — — 44,971,454 3,711,482 — — 3,711,482 7,266.797 36.048 — 7.302.845 58,128,466 36,048 — 58,164.514 763.487 113,507 — 876,994 10,372,034 1,469,947 — 11,841.981 474,266 18,172 — 492,438 5,034,755 638,330 — 5,673,085 16,644,542 2,239.956 — 18,884.498 41,483,924 (2,203.908) 39,280.016 $ 43,262.618 (2,113,623) — 41,148,995 36 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 Depreciation expense was charged to the departments and functions of the primary government as follows: Governmental activities: General government $ 427,460 School district support 2,234,722 Fire services 65,666 Health and sanitation 35,334 Emergency preparedness 2,329 Total — governmental activities 2,765,511 Business -type activities: Municipal solid waste collection and disposal 208,330 Hospital facilities 1,238,064 Kodiak fisheries research center 793,562 Total — business -type activities 2,239,956 Total $ 5,005,467 Expenditures qualify for capitalization as a capital 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 capital assets are depreciated over the estimated remaining useful life of the asset on a straight -line basis. 37 (Continued) I I r KODIAK ISLAND BOROUGH Notes to Financial Statements I June 30. 2005 (6) Interfund Receivables, Payables and Transfers (a) Interfund Receivables and Payables Interfund receivables and payables at June 30, 2005 consisted of the balances of short-term interfund loans all of which are expected to be paid within one year. A summary of interfund receivables and payables at June 30, 2005, is as follows: 1 38 (Continued) Receivable Pavable General fund $ — 406,193 Facilities fund 372,799 20.397 Education and health fund — 1,487,276 Various borough projects fund 301,650 — School bond capital projects fund 1,913,866 Nonmajor governmental funds 93,244 652,193 Major enterprise funds: Hospital Enterprise fund 11,974 — Kodiak Fisheries Research Center fund — 127,474 $ 2,693,533 2.693,533 ' (b) 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 advance bears interest at 7 %, and the scheduled payments for the next five fiscal years and thereafter are as follows: 'j Principal Interest Total Year ending June 30: 2006 $ 290,000 451,850 741,850 2007 315,000 430,675 745,675 2008 335,000 407,925 742,925 2009 360,000 383,600 743,600 2010 385,000 357,525 742,525 2011 -2015 2,360,000 1,329,470 3.689,470 2016 -2019 2.555,000 372,925 2,927,925 r $ 6,600,000 3,733,970 10,333,970 1 38 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30, 2005 In July 2003, the Facilities Special Revenues Fund loaned $1,600,000 to the Hospital Fund in order to help fund current operations. The loan from the Facilities Special Revenue Fund is accounted for as a long -term interfund advance, while the liability in the Hospital Facilities Enterprise Fund is accounted for as a long -term interfund borrowing. The advance bears interest at 4%, and the scheduled payments for the next five fiscal years and thereafter are as follows: Principal Interest Total Year ending June 30: 2006 $ 57,919 59,059 116,978 2007 60,259 56,719 116,978 2008 62,693 54,285 116,978 2009 65,226 51,752 116,978 2010 67,861 49,117 116,978 2011 -2015 382,714 202,178 584,892 2016 -2020 466,526 118,366 584,892 2021 -2024 327,624 23,312 350,936 - $ 1,490,822 614,788 2,105,610 (c) Transfers Interfund transfers 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 during the year -ended June 30, 2005 were as follows: Fund Types: General fund Facility fund Nonmajor governmental funds Major enterprise fund: Hospital Total transfers 39 (Continued) I Transfers in Education Various Nonmajor Hospital and health Borough govern - Transfers Enterprise debt service projects mental out fund fund fund funds $ 510,097 - 510,097 - - 884.248 125,000 550,368 - 208.880 235,265 - - 216,508 18,757 295.602 - 295,602 - - $ 1,925.212 125,000 1,356,067 216.508 227.637 39 (Continued) I III KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 A summary of significant transfers are as follows: • The General Fund transferred $510,097 to the Debt Service Fund to pay for debt service on general government debt. • The Facilities Special Revenue Fund transferred $208,880 to the Building and Grounds Special Revenue Fund to pay for building insurance. • The Facilities Special Revenue Fund transferred $550,368 to the Debt Service Fund for debt service on hospital bonds. • The Facilities Special Revenue Fund transferred $125,000 to the Hospital Enterprise Fund for the interest earned on sale of Shuyak Island. • The Hospital Enterprise Fund transferred $295,602 to the Debt Service Fund to pay for debt service on hospital — related debt. 1 40 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 (7) Long Term Debt (a) General Obligation Bonds and other debt The Borough issues general obligation bonds and other debt to provide funds for the acquisition and construction of major capital facilities General obligation bonds are direct oblieations and pledge the full faith and credit of the Borough. General obligation bonds and other debt currently outstanding are as follows: Type of debt General obligation bonds - 1998 Series General obligation bonds - 2000 E Series General obligation bonds - 2000 F Series General Obligation bonds - 2003 A Series General obligation bonds - 2004 A Series Interest Rates Dates Issue date 3.25- 4.30 8 /15 -2/15 12/22/1998 4.75 -5.0% 8/1-2/1 12/12 /2000 6.9 -9.0% 8/1 -2/1 12/12/2000 2.00 - 2.625% 8/15 -2/15 4/9/2003 4.0 -5.0 % 1/1-7/1 7/21/2004 Maturity Principal payments dates Dates Amount 2/15/2014 2/15/2006 S 60.000 2/15/2007 60.000 211512008 1.150.000 2/15/2009 1 'OO.O(1O 2/15/2010 1.2 50.(X)O 2/15/2011 1.305,000 2/15/2012 1.360.000 211512013 1.420.000 2/15/2014 1.480.000 9 .285.000 2/1/2011 2/l/2006 145.000 2/l/ 150.000 2/l/2008 160.000 2/l/2009 165.000 2/1/2010 175.000 2/1/2011 180.000 975.000 2/1/2011 2/l/2006 110.000 2/l/2007 120.000 2/l/2008 130.000 2/l/2009 140.000 2/1/2010 150.000 2/1/2011 160.000 810.000 8/15/2007 2/15/2006 1.005.000 2/15/2007 1.030.000 2.035.000 7/1/2024 7/l/2006 310.000 7/1/2007 325.000 7/1/2008 340.000 7/1/2009 350.000 7/1/2010 365.000 7/1/2011 385.000 7/1/2012 400.000 7/1/2013 415,000 7/1/2014 435.000 7/1/2015 450.000 7/1/2016 470.000 7/1/2017 485.000 7/1/2018 510.000 7/1/2019 530.000 7/1/2020 555.000 7/l/2021 580.000 7/1/2022 605.000 7/1/2023 635.000 7/1/2024 665.000 8.810.000 41 I(lmtinuedl i i i i i I� I� i i i Balance at Authorized Prior years June 30, Fiscal vear Amount Retired 2004 1999 9.740.000 9.740.000 400.000 9.340.000 Balance at Retired/ June 30, Issued Refunded 2005 55.000 9.285.000 2001 1.485.000 1.485.000 375.000 1.110.000 — 135,000 975.000 2001 1.175.000 1.175.000 360.000 915.000 — 105.000 810.000 2003 3.075.000 3.075.000 55.000 3.020.000 — 985.000 2.035.000 3004 9.300.000 — 9.300.001 490.000 8.810.000 4 2 (Continued i KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 Type of debt General obligation bonds - 2004 B Series ADEC loans Clean water - Karluk Interest Rates Dates 3.0 -5.0 5/1 -11 /1 3.92 -4.05% ** Maturity Principal payments Issue date dates Dates Amount 12/1/3004 11/1/2024 11/112005 S 180.000 1!/1/2006 410.000 ll /l/2007 430.000 11/!/2008 435.000 l l / 1 /2009 445.000 11/1/2010 460.000 11/1/2011 475.000 11/1/2012 490.000 11/1/2013 510.000 11/1/2014 530.000 11/1/3015 550.000 11/1/3016 570.000 11/1/3017 595.000 11/1/2018 630.000 11/1/3019 650.000 ll/l/2020 675.000 11/1/2021 705.000 ll/l/2022 740.000 11/1/2033 775.000 11/1/2024 815.000 11.050.000 ** ** 6/l/2006 4.553 6/1/2007 4.667 6/1/2008 4.784 6/1/2009 4.903 6/1/2010 5.026 6/1/2011 5.152 6/1/2012 5.280 6/1/2013 5.412 6/1/2014 5.548 6/1/2015 5.686 6/1/2016 5.829 6/1/3017 5.974 6/1/2018 6.124 6/1/3019 6.277 6/1/2020 6.434 6/1/2021 6.594 88.243 $ 33.053.243 * Interest free unless delinquent. the 7% 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. Interest begins accruing at the stated rates from the date of each individual disbursement of loan proceeds to the Borough. 41 Authorized Prior years F iscal year Amount Issued Retired 2004 11.050.000 Balance at Balance at June 30, Retired/ June 30, 2004 Issued Refunded 2005 11.050.000 — 11.050.000 1998 400.000 97.019 4334 93,685 — 4.442 88.243 $ 3 15.572.019 1.0 94. 33 4 14.477.685 20.350.000 1.774.442 33,053 243 44 KODIAK ISLAND BOROUGH Notes to Financial Statements June 30, 2005 The annual requirements to amortize all general obligation bonded debt and the ADEC loan payable outstanding as of June 30, 2005 are as follows: There were no amounts available in the debt service funds to service the 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. (d) Note Payable As of June 30, 2005, the Borough had the following note payable outstanding in the enterprise funds: Note payable to Alaska Department of Environmental Conservation (ADEQ, 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 $ (e) Solid Waste Landfill Closure and Postclosure Care Costs 1,270,210 1 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 $3,013,931 as of June 30, 2005, which is based on 82 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, 2005, an increase of $255,498 was 45 (Continued) i� C General ADEC obligation loan payable Interest Total Year ending June 30: 2006 $ 1,810,000 4,553 1,358407 1,814,553 2007 2,095,000 4,667 1,333,133 2,099,667 2008 2,200,000 4,784 1,261,787 2,204.784 2009 2,290,000 4,903 1,168,103 2,294,903 2010 -2014 11,860,000 26,418 4,336,841 11,886,418 2015 -2019 5,310,000 29,890 2,438,514 5,339,890 2020 -2024 6,585,000 13,028 1,172,364 6,598,028 2025 -2026 815.000 — 40,750 815,000 $ 32,965,000 88,243 13,109.899 33,053,243 There were no amounts available in the debt service funds to service the 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. (d) Note Payable As of June 30, 2005, the Borough had the following note payable outstanding in the enterprise funds: Note payable to Alaska Department of Environmental Conservation (ADEQ, 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 $ (e) Solid Waste Landfill Closure and Postclosure Care Costs 1,270,210 1 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 $3,013,931 as of June 30, 2005, which is based on 82 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, 2005, an increase of $255,498 was 45 (Continued) i� C ' KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 ' recorded in the current ear based on current year usage and changes in estimates. y g g a An estimated additional $661,590 will be recognized as closure and postclosure care expenses between the date of 1 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 $3,675,521 is based on the amount that would be paid if the landfill were closed as of June 30, 2005. However, the actual cost of closure and ' postclosure care may be higher due to inflation, changes in technology. or changes in landfill laws and regulations. The Kodiak Island Borough is required by state and federal laws and regulations to make annual contributions to finance closure and postclosure care. The Kodiak Island Borough complies with these requirements by annually recording the liability based on the estimates provided by the Kodiak ' Island Borough's Engineering/Facilities Director. It is anticipated that future inflation costs and additional costs that might arise from changes in postclosure requirements, due to changes in technology or more rigorous environmental regulations, for example, will be financed primarily by ' charges to future landfill users and secondarily by taxpayers. I I 7 46 (Continued) KODIAK ISLAND BOROUGH ' Notes to Financial Statements June 30, 2005 (f) Changes in Long -Term Liabilities Long -term liability activity for the year —ended June 30, 2005 was as follows: Balance Balance June 30, June 30, Due within 2004 Additions Reductions 2005 one year Governmental activities: Bonds payable: General obligation bonds $ 14,385,000 20,350,000 1,770,000 32,965,000 1.810.000 Bond premium — 121,589 6,080 115,509 6.080 14,385,000 20,471,589 1,776,080 33.080.509 1.816,080 ADEC loans 92,685 — 4.442 88,243 4,553 Compensated absences 204,461 172,760 204,461 172.760 172,760 EPA loan payable 10.417 — 10,417 — — Total $ 14.692,563 20.644,349 1,995,400 33,341,512 1.993.393 Business -type activities: Municipal solid waste collection and disposal: Landfill closure and post - closure care costs $ 2.758,433 255,498 — 3,013.931 — Notes payable 1.262,123 8,087 — 1,270,210 — Total $ 4,020,556 263,585 — 4,284,141 — Hospital facilities: Long –term interfund borrowings $ 1,546,492 — 55,670 1,490.822 57.919 Capital leases 185,970 — 185,970 — — Total $ 1.732,462 — 241,640 1.490,822 57.919 Kodiak Fisheries Research Center: Long –term interfund borrowings $ 6,875,000 — 275.000 6,600,000 290.000 Business -type activities: Capital leases $ 185,970 — 185,970 — — Landfill closure and post - closure care costs 2.758,433 255,498 — 3,013.931 — Long –term interfund borrowings 8.421.492 — 330,670 8.090.822 347,919 Notes payable 1.262,123 8.087 — 1.270,210 — Total $ 12.628,018 263.585 516.640 12,374.963 347.919 For governmental activities. compensated absences are generally liquidated by the general fund. I 47 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 (8) Insurance and Risk Retention The Kodiak Island Borough is exposed to numerous risks of loss associated with the operations of a government. These potential losses include, but are not limited to. employee relations and injuries. contracts, theft, loss or damage of property, and general liability. The Borough manages its risks from these potential losses by participating in the Alaska Municipal League Joint Insurance Association, as well as purchasing commercial insurance coverage. This insurance has provided the Borough with adequate coverage in the past. There were no significant changes in insurance coverage obtained and there were no claims or settlements that exceeded insurance coverage in any of the past three fiscal years. The Borough is a member in good standing of the Alaska Municipal League Joint Insurance Association (JIA), a governmental insurance pool established by the Alaska Municipal League. Claims are covered on an occurrence basis. JIA provides risk management services and appraisal services and there is also a separate pool for policy liability. The Kodiak Island Borough's Mayor, Manager and Finance Director are members of the board of directors of the JIA. The responsibilities of both JIA and the participants are as follows: (a) 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. (b) 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. 48 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30, 2005 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. (9) Rental Revenues (a) 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 lease is cancelable by either party with a one year notice. The hospital fixed assets, the lease income, and all other costs relating to the agreement are accounted for by the Borough in the Hospital Facilities 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 $60,000 per month and 50% of the net revenues of the hospital, up to $600,000, in rental revenues. In August 2003, the lease was amended that required Providence to pay an additional lease payment of $1,300,000 in 2004. Prior to the commencement of each subsequent lease year, both parties will negotiate the additional lease payment for the following year. The negotiated lease payment is equal to the payment that the Borough makes as a contribution to the State of Alaska Medicaid program. 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. (b) Kodiak Fisheries Research Center The Kodiak Fisheries Research Center (KFRC) leases its premise to the Administration (GSA), Alaska Department of Fish and Game (ADF &G), the Department of Commerce, National Oceanic and Atmospheric Administration University of Alaska Fairbanks (UAF). General Services GSA on behalf of (NOAA), and the The lease with the GSA is from March 1, 2003 through September 30, 2018, cancelable with 120 days notice. Annual rent varies from $32,000 in 2006 to $41,000 in 2018. The lease with ADF &G is from October 1, 1998 through September 30, 2018, with an option to extend for up to two additional five —year periods. Annual rent varies from $28,800 in 2006 to $52,800 in 2011. The annual rent from 2012 through 2018 will be based on $52,800 and adjusted for the tenant's proportionate share of building expenses and utilization of the seawater system. 49 (Continued) 1 1 KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 1 The lease with NOAA is from c O tober 1, 1998 through September 30. 2018, with an option to extend for up to four additional five —year periods. Annual rent is $756,000 plus operational and maintenance expenses of $699,076. Operational and maintenance expenses are adjusted every five years to actual costs. The lease with UAF is from October 1, 1998 through September 30, 2018, cancelable with 30 days notice, with an option to extend for up to two additional five —year periods. Annual rent varies from $90,000 in 2006 to $143,601 in 2018. (10) Retirement Commitments (a) PERS The Alaska Public Employees' Retirement System (PERS) is a defined benefit agent multiple- employer public employee retirement system that acts as a common investment and administrative agent for political subdivisions within 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. Employee participation in the plan is mandatory for permanent employees scheduled to work at least 15 hours a week. There is no optional participation for other employees. The plan provides pension and other postemployment healthcare. death and disability benefits. During 2005, the Borough adopted Governmental Accounting Standards Board Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. PERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to State of Alaska, Department of Administration, Division of Retirement and Benefits, P.O. Box 110203, Juneau, Alaska 99811 -0203 or by calling (907) 465 -4460. Under state law, covered employees are required to contribute 6.75% (7.5% for police and fire personnel) of their annual covered payroll and the Borough is required to contribute an actuarially determined rate that, expressed as a percentage of annual covered payroll, is sufficient to accumulate assets to pay pension and other postemployment benefits (OPEB) when due. However, the 2005 actuarially determined rate was 16.80% of applicable gross pay and the employer contribution rate was capped at 7.64% in accordance with a PERS statute that limits yearly increases to 5 %. Benefits vest with five years of credited service. Employees enrolled 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 enrolled after June 30, 1986, the normal and early retirement ages are 60 and 55, respectively. Employees with 30 or more years of credited service may retire at any age and receive a normal benefit. 50 (Continued) KODIAK ISLAND BOROUGH Notes to Financial Statements June 30, 2005 Retirement benefits are calculated by multiplying the average monthly compensation (AMC) times credited PERS service times the percentage multiplier. The AMC is determined by averaging the salaries earned during the five highest (three highest for Police/Fire members or members hired prior to July 1, 1996) consecutive payroll years. Members must earn at least 115 days of credit in the last year worked to include it in the AMC calculation. The PERS pays a minimum benefit of $25.00 per month for each year of service when the calculated benefit is less. The percentage multipliers for police /fire personnel are 2% for the first ten years of service and 2.5% for all service over 10 years. The percentage multipliers for all other participants are 2% for the first ten years, 2.25% for the next ten years, and 2.5% for all remaining service earned on or after July 1, 1986. All service before that date is calculated at 2 %. The system also provides death and disability benefits and major medical benefits. Major medical benefits are provided without cost to all members first enrolled before July 1, 1986. Members first enrolled after June 30, 1986 and who have not reached age 60 may elect to pay for major medical benefits. Pension benefits are adjusted each year based upon increases in the Consumer Price Index (CPI) for the prior year. The increase in the benefits is 75% of the CPI increase up to a 9% maximum for recipients who are at least age 65 or on disability or 50% of the increase up to a 6% maximum for recipients who are at least age 60 but under age 65 or who have been receiving benefits for at least five years. Starting at age 65, or at any age for those employed before July 1, 1986, a retired employee who remains in Alaska is eligible for an additional allowance equal to 10% of the base benefit or $50 a month, whichever is greater. Annual Cost and Net Obligation The Borough's annual costs (expense) are calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 20 years. The following table shows the components of the Borough's annual cost, the amount actually contributed to the plan, and changes in the Borough's net obligation to PERS: Pension OPEB Annual required contribution $ 159,228 106,152 Adjustment to annual cost 114,441 76,768 Annual cost 273,669 182,920 Contributions made 59,753 39,939 Increase in obligation 213,916 142,981 Net obligation, beginning of year — — Net obligation, end of year $ 213.916 142,981 51 (Continued) ' KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. Significant actuarial methods and assumptions were as follows: 52 (Continued) I Funded Status and Funding Progress (Unaudited) 1 The funded status of the plan as of June 30, 2003, was as follows: Pension OPEB Actuarial accrued liability (AAL) $ 11,170.000 7,466.000 Actuarial value of plan assets 8.701.000 5.816.000 Unfunded actuarial accrued liability (UAAL) $ 2.469.000 1.650.000 Funded ratio (actuarial value of plan assets /AAL) 78% 78% Covered payroll (active plan members) $ 1,712,000 1,712.000 UAAL as a percentage of covered payroll 144% 96% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. Significant actuarial methods and assumptions were as follows: 52 (Continued) I i KODIAK ISLAND BOROUGH Notes to Financial Statements June 30, 2005 I � O PEB I - 3.00% 2.70% 2.00 June 30, 2003 Projected unit credit Percent of pay. open 20 years 5 -year 3.50% 8.25% N/A N/A N/A 12.00% The Borough's annual pension cost, the percentage of annual pension cost contributed to the plan, and the net pension obligation for 2005 and the two preceding years were as follows: Percentage of APC Net pension Year ended APC contributed obligation 6/30/2003 $ 1,748 100% $ — 6/30/2004 58 100 — 6/30/2005 273,669 22 213,916 The Borough's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2005 and the two preceding years were as follows: Annual Percentage of OPEB annual OPEB Net OPEB Year ended June 30 cost cost contributed obligation 2003 1.165 100% $ 2004 39 100 — 2005 181920 22 142.981 J3 (Continued) Pension Contribution rates: Employee: Peace officers and firefighters 4.50c1c Other employees 4.05% Employer 3.00% Actuarial assumptions: Actuarial valuation date June 30, 2003 Actuarial cost method Projected unit credit Amortization method Percent of pay, open Remaining amortization period 20 years Asset valuation method 5 -year Inflation rate 3.50% Investment return 8.25% Projected salary increase: Inflation 3.50% Productivity and merit: Peace officers and firefighters 2.50% Others 2.00% Health cost trend N/A I � O PEB I - 3.00% 2.70% 2.00 June 30, 2003 Projected unit credit Percent of pay. open 20 years 5 -year 3.50% 8.25% N/A N/A N/A 12.00% The Borough's annual pension cost, the percentage of annual pension cost contributed to the plan, and the net pension obligation for 2005 and the two preceding years were as follows: Percentage of APC Net pension Year ended APC contributed obligation 6/30/2003 $ 1,748 100% $ — 6/30/2004 58 100 — 6/30/2005 273,669 22 213,916 The Borough's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2005 and the two preceding years were as follows: Annual Percentage of OPEB annual OPEB Net OPEB Year ended June 30 cost cost contributed obligation 2003 1.165 100% $ 2004 39 100 — 2005 181920 22 142.981 J3 (Continued) u ' KODIAK ISLAND BOROUGH Notes to Financial Statements June 30. 2005 1 (b) 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 regular Borough employees. The deferred compensation is not available to employees until termination, retirement, death, 1 disability 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, ' 2005 was $88,510. The plan is managed by the International City Managers Association Retirement Corporation. The Borough believes that the plan does not meet the criteria for inclusion as a fiduciary fund. (11) Contingencies t (a) 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. 1 (b) Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by the grantor agencies. Any disallowed claims, including amounts already collected, would become a ' liability of the general or other applicable funds. In management's opinion, disallowances, if any, will not be material. (c) Litigation The Borough is a member of a mandatory class action lawsuit that resulted in a verdict against Exxon Corporation in August 1994 in the amount of $5 billion for punitive damages and was later 1 reduced to $4.5 billion. The matter is now on appeal to the Ninth Circuit Court of Appeals. The share of the settlement, if any, has not been recognized in the financial statements as the settlement is in the appeals process. The ultimate outcome of the matter and the amount to be realized by the Borough upon final settlement is indeterminable at this time. � I F, L' 1 REQUIRED SUPPLEMENTARY INFORMATION t t KODIAK ISLAND BOROUGH Required Supplementary Information Schedule of Funding Progress — PERS June 30. 2005 III Three -year historical trend information presenting the Borough's progress in accumulating sufficient assets to pay pension and OPEB benefits under the PERS when due is presented as follows (dollar amounts in thousands): (AAL) UAL/FE as a Actuarial (UAAL) percentage Actuarial Actuarial accrued Funding of covered valuation value of liability excess Funding Covered payroll date assets (a) (AAL) (b) (FE) (a -b) ratio (a/b) payroll (c) ((a -b) /c) ' Pension: 6/30/2001 S 11.377 9.967 1.410 114ci( S 1.692 8 3 6130/2002 9.032 10.981 (1.949) 82% 2.011 (97)(7, 6/30/2003 8.701 11,170 (2,469) 78c7c 1.712 (144) 17( OPEB: 6/30/2001 S 4,818 4,221 597 114171 S 1,692 35 6/30/2002 5.488 6.672 (1,184) 82cii 2.011 (59)(7c 6/30/2003 5,816 7,466 (1.650) 7817( 1,712 (96)17( III KODIAK ISLAND BOROUGH Budgetary Comparison Schedule General Fund Year ended June 30. 2005 (With summarized financial information for the year ended June 30, 2004) 56 (Continued 1 Variance with final budget - Budget positive 2004 riginal Final Actual (negative) Actual Revenues: Property taxes: Real $ 6,923,110 6.923.110 6.962,534 39,424 6.076.102 Personal 1.050,440 1,050,440 995.953 (54,487) 981,285 Motor vehicle 190,000 190,000 203,603 13,603 165,148 Boat 8,520 8,520 6,575 (1.945) 7.275 Penalty and interest 150,000 150,000 204,612 54.612 135.823 Total property taxes 8,322,070 8,322,070 8,373,277 51,207 7,365,633 Severance taxes: Fish 841,490 841,490 980.110 138,620 746.118 Mining 6,190 6,190 8,416 2,226 6,822 Logging 51,560 51,560 17,013 (34.547) 46.753 Total severance taxes 899.240 899.240 1,005,539 106,299 799,693 Intergovernmental: State sources: State shared revenue - - - - - Municipal assistance - - - - - Tax Payer Relief - - - - 146,321 Raw fish tax 805,000 785,000 773,290 (11.710) 649,927 Fish revitalization - - - - - Liquor license - - - - - Electric Co -op tax 20.000 20,000 27,205 7,205 26,337 Total state sources 825,000 805,000 800,495 (4,505) 822,585 Federal sources: Payments in lieu of taxes 685,000 777,090 789,053 11.963 808,739 Miscellaneous 400,075 400,075 335,857 (64,218) 379,107 Total federal sources 1,085,075 1,177,165 1.124,910 (51255) 1,187,846 Total intergovernmental revenue 1,910,075 1,982,165 1,925,405 (56,760) 2,010,431 Licenses, permits, fees, and other local revenues: Building and trailer permits 68,000 68,000 77,597 9,597 91,227 Subdivision and zoning fees 11,500 11.500 13.825 2,325 13,565 Sale of copies 26,000 26,000 18,394 (7,606) 18,298 Miscellaneous 41,000 61.000 51.805 (9,195) 64.808 Total licenses, permits, fees, and other local revenues 146.500 166.500 161.621 (4,879) 187,898 Investment income 100,000 155.084 265.392 110.308 105,812 Total revenues 11,377.885 11,525.059 11.731,234 206.175 10,469,467 56 (Continued 1 I See accompanying notes to required supplementary information. 57 KODIAK ISLAND BOROUGH Budgetary Comparison Schedule j' General Fund Year ended June 30. 2005 (With summarized financial information for the year ended June 30. 2004) Variance with final budget - Budget positive 2004 ' Original Final Actual (negative) Actual Expenditures: Borough assembly Borough manager $ 159,410 209,110 159,410 359,110 126,388 355.019 :3,022 4.091 137,850 194.938 Borough clerk 330,102 328,502 304.259 23,243 292,203 Borough attorney 188,200 138,200 112.510 25,690 89,685 Finance department 639,870 596,990 556.616 40.374 409,523 Assessing department 320.560 270.560 246,884 23.676 209,134 Engineering /facilities department 92,220 92,220 76,195 16.025 63,755 Community development department 539,084 439,084 443,876 (4,792) 375,391 Building official 132.230 132.230 139.832 (7.602) 133,474 Economic development 113,840 113.840 87.322 26,518 53,652 General and administration 259,870 299,870 327,571 (27,701) 250,590 Emergency preparedness 5.500 5.500 5.428 72 5,129 School District support 7.975.440 7,887,410 7,973,035 (85,625) 7.721,706 Health and sanitation department 267,037 254,313 254,313 257,037 Education, culture, and recreation 125,987 127,335 127,335 163,487 Management information systems 231,865 356,865 381,037 (24,172) 257,239 Total expenditures 11.590.325 11,561,439 11,517,620 43,819 10.614,793 Excess of revenues over expenditures (212.440) (36.380) 213.614 249,994 (145.326) Other financing sources (uses): Transfers in from other funds - - - - 850,000 Transfers to other funds (560.767) (510,097) (510,097) (399,290) Total financing uses (560.767) (510,097) (510.097) - 450,710 Excess of revenues and transfers in over expenditures and transfers out $ (773.207) (546,477) (296,483) 249,994 305,384 Fund balances, at beginning of year Fund balances. at end of the year 1109,496 1.804,112 $ 1.813.013 2,109,496 I See accompanying notes to required supplementary information. 57 Revenues: Investment income Total revenues Expenditures: Contingencies Total expenditures Excess of revenues over expenses Other financing uses: Transfers out to other funds: Capital projects — state grants Buildings and grounds Debt service funds Net other financing uses Excess (deficiency) of revenues over expenditures and other financing uses Fund balances, at beginning of year Fund balances, at end of year Budget Original 4 s KODIAK ISLAND BOROUGH t Budgetary Comparison Schedule 1.400,000 Special Revenue Fund — Facilities 548,662 Year ended June 30. 3005 ' (With summarized financial information for the year ended June 30, 2004) 851,338 Revenues: Investment income Total revenues Expenditures: Contingencies Total expenditures Excess of revenues over expenses Other financing uses: Transfers out to other funds: Capital projects — state grants Buildings and grounds Debt service funds Net other financing uses Excess (deficiency) of revenues over expenditures and other financing uses Fund balances, at beginning of year Fund balances, at end of year Budget Original Final $ 1,400,000 1,400,000 1.400,000 1.400,000 (550,368) (550,368) 548,662 515,663 548,662 515,663 851,338 884,338 — (135,000) (135,000) — (6 22,384) (300,970) (208,970) (308,880) 90 (368,540) (550,368) (550,368) (550368) — (404,060) (851,338) (884,338) (884,248) 90 (1294,984) — $ — — 239,823 329,823 (571,074) 515.662 37,544,509 38,115.583 $ 37,774,332 37,544,509 Variance with final budget — See accompanying notes to required supplementary information 58 t t t positive 200.1 Actual (negative) Actual 1,114,071 (285,939) 723,910 1,114,071 (285,929) 723,910 — 515.662 - - 515.662 — 1,114,071 339.733 723,910 See accompanying notes to required supplementary information 58 t t t KODIAK ISLAND BOROUGH Notes to Required Supplementary Information - Budgetary Comparison Schedules June 30. 2005 59 The Borough follows these procedures in establishing the budgetary data reflected in the 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 I 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 1 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. ' 0 Expenditures may not legally exceed appropriations at the following levels: Capital Projects Funds - project level, all other funds - department level. • All funds, except Capital Projects Funds, are budgeted on an annual basis encompassing a fiscal year. Budgets of Capital Projects Funds generally encompass the period from start-up to project completion, which is generally greater than one year. 1 • 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. • The Borough publishes a separate 2005 budget document. That document may be obtained from the Kodiak Island Borough, Director of Finance. 710 Mill Bay Road, Kodiak, Alaska 99615. 59 NONMAJOR GOVERNMENTAL FUNDS Special Revenue See special revenue section of the report. Debt Service See debt service section of the report. Capital Projects See capital projects section of the report KODIAK ISLAND BOROUGH Combinine Balance Sheet Nonmajor Governmental Funds June 30. 2005 (With summarized financial information at June 30. 2004) Assets Equity in central treasury Temporary investments Receivables: State of Alaska Federal government Land sales contracts, due within one year Property taxes Notes receivable Other Due from other funds Land sale contracts. due after one year Notes receivable, due after one year Total Liabilities and Fund Balances Liabilities: Accounts payable Retainages payable Employee benefits accrued and withheld Customer deposits Unearned revenues Due to other funds Total liabilities Fund balances (deficit): Unreserved: Designated for subsequent year expenditures Undesienated Total fund balances (deficit) Totals See accompanying notes to financial statements. Special Debt Capital "Totals revenue service projects 2005 2004 $ 857,787 158.409 - 1,016.196 955,005 2.012.699 - - 2.012.699 2.545.792 20.030 - 248.832 268.862 339,808 - - 6.355 6,355 6,750 8.000 - - 8.000 8.000 14,479 - - 14,479 17.829 53.374 - - 53,374 - 25.105 - - '5,105 619,634 93.244 - - 93.244 585.050 34,272 - - 34. 2 _72 42.056 487,271 - - 487.271 - $ 3.606,361 158.409 255,187 4,019,857 5,1 19.924 $ 96.631 - 35.760 132.391 401,369 - - 22.270 22.270 22.270 156 - - 156 156 1.203 - - 1.203 678 599,136 - - 599.136 659,782 350.543 - 301.650 652.193 570,568 1.047.669 - 359.680 1.407.349 1.654,823 143.676 - - 143.676 256,860 2,414,916 158,409 (104.493) 2.468.832 3.208 241 2.558.592 158,409 (104,493) 2,612,508 3,465.101 $ 3,606.261 158.409 255,187 4,019,857 5.1R924 60 KODIAK ISLAND BOROUGH Combining Statement of Revenues. Expenditures. and Changes in Fund Balances Nonmajor Governmental Funds Year ended June 30. 2005 (With summarized financial information for year ended June 30. 2004) See accompanying notes to financial statements. 61 Special Debt Capital Totals revenue service projects 2005 2004 Revenues: Property taxes $ 690,452 - - 690.452 650.690 State sources 95.528 - 331.093 426,621 500.423 Federal sources 142,371 - 187,012 329.383 57.491 Land sale proceeds 22.738 - - 22.738 9,206 Licenses, permits, fees. and other local revenues 530,379 - - 530.379 577,015 Investment income 52.826 - - 52.826 36.421 Other 75,094 - - 75.094 222.117 Total revenues 1.609,388 - 518,105 2.127,493 3.053.363 Expenditures: Maintenance and operations 698,119 - - 698,119 567.094 Debt service 1,571 - - 1.571 - Health and sanitation department 75,435 - - 75.425 74.847 Fire services 425,506 - - 425,506 864.703 Service district maintenance 347,934 - - 347.934 425,712 Community and economic development 65.804 - - 65.804 160.720 Education, culture, and recreation 58.658 - - 58.658 54,272 Emergency preparedness 18.093 - - 18.093 43.626 Fem Fuller trust 22,547 - - 22,547 24,500 Capital and improvement: Schools - - 12,717 12.717 131,324 General - - 511.798 511,798 656.423 Total expenditures 1,713.657 - 524.515 2.238.172 3.003.2 21 Excess (deficiency) of revenues over expenditures (104,269) - (6.410) (110.679) (949,858) Other financing sources (uses): Transfers in from other funds 227,637 - - 227,637 1.608.374 Transfers out to other funds (235,265) - - (235,265) (266.780) Net other financing sources (uses) (7,628) - - (7.628) 1,341,594 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (111.897) - (6,410) (118.307) 391.736 Find balances (deficit) at beginning of year 2,670.489 158.409 (98,083) 2,730,815 3,073365 Fund balances (deficit) at end of year $ 2.558,592 158.409 (104.493) 2.61150S 3.465.101 See accompanying notes to financial statements. 61 NONMAJOR SPECIAL REVENUE FUNDS The Fire Protection Area No. 1 Fund accounts for the activities related to fire suppression and fire prevention services to the citizens of the service area. The Womens Bay Fire Department Fund accounts for the activities related to fire suppression and fire prevention services to the citizens of the service area. The Kodiak Airport Fire District Fund accounts for the activities related to fire suppression and fire prevention services to the citizens of the service area. The Monashka Bay Road Service Area Fund accounts for the activities related to road services within the service area. The Service District No.1 Fund accounts for the activities related to maintenance service to roads within the district, including snow removal, ditching and grading. The Womens Bay Service Area Fund accounts for the activities related to maintenance service to roads within the service area, including snow and ice removal, ditching and culvert work. The Bay View Road Service Area Fund accounts for the activities related to road services within the service area. The Service Area No. 2 Fund accounts for the activities related to water and sewer services in the service area. This fund is in the design stage at present. The 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. NONMAJOR SPECIAL REVENUE FUNDS The Local Emergency Planning Committee Fund accounts for State of Alaska grants provided for regional emergency preparation, response, and mitigation planning. The Land Sales Fund accounts for the disposal of Borough -owned lands. The proceeds of land disposals are generally used for the management of Borough lands and the repairs and maintenance of Borough school buildings. The Building and Grounds Fund accounts for the operations and maintenance of certain buildings and grounds owned by the Borough that 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 Tourism Development Fund accounts for the collection of the Borough Transient Accommodation Tax (Bed Tax) and its subsequent transfer to the Kodiak Island Convention and Visitor Bureau. The Trinity Islands Lighting District Fund accounts for activities related to the provision of street lighting within the service area. The Trinity Islands Paving District Fund accounts for activities related to paving the dirt roads within the subdivision. The Mission Lake Tide Gate Fund accounts for activities related to maintaining the tide gate for the residents of the service area. The Fern Fuller Trust Fund accounts for the distribution of funds to the beneficiaries of the trust THIS PAGE INTENTIONALLY LEFT BLANK 02 (Continued i KODIAK ISLAND BOROl1GII Nonmajor Special Revenue Funds Combining Balance Sheet June 30. 2005 ( With summarized financial information for the year ended June 30. 2004 Fire and Road Service Areas Fire Road Fire Women's Kodiak Nlonashka Protection Bay Fire Airport Fire Bay Road Service Assets Area No. 1 Department District Service Area District No. 1 Equity in central treasury S — 131.379 26.646 50.113 172.911 Temporary investments 993.130 — — — — Receivables: State of Alaska — — — — — Land sales contracts, due within one year — — — — — Property taxes 5.309 2.276 619 303 2.714 Notes receivable — — — — — Other 3,156 — — — — Due from other funds — — — — 93,244 Land sale contracts, due after one year — — — — — Notes receivable, due after one year — — — — — Total S 1,001,595 133.655 27.265 50.431 268.869 Liabilities and Fund Balances (Deficits) Liabilities: Accounts payable S 18.999 331 — 395 14,632 Employee benefits accrued and withheld — — — — — Customer deposits — 1,025 — — — Unearned revenues — — — — — Due to other funds 49,572 40,609 — — — Total liabilities 68.571 41.965 — 395 14.632 Fund balances (deficits): Unreserved (deficits): Designated for subsequent year expenditures 85,250 — — 14,076 39.850 Undesignated 847,774 91.690 27.265 35.950 214.387 Total fund balances (deficits) 933.024 91,690 27,265 50.026 254,237 Totals S 1,001,595 133.655 27.265 50.421 268.869 02 (Continued i Fire and Road Service Areas 6? Wonlimied ) Road Federal and State grTLprograms hiId care Women's Bay Bay View Road Service Area Coastal assistance Service Area Service Area No. 2 management program L.E.P.C. Land sales 178.317 136 4.167 — 8.605 — 6.940 — — — — — — 713.695 — — — 7.670 1.154 11,206 - - 3,173 85 — — — — — — — — — — — 34.272 181,490 221 4.167 7.670 9.759 11.206 762.913 9.784 2.126 — 1.846 1,421 5.949 2,558 — — — — — — 42,272 — — — 24.823 — 11.038 — 9,784 2.126 — 26.669 1,421 16.987 44,830 171,706 (1.905) 4,167 (18,999) 8.338 (5.781) 718,083 171,706 (1,905) 4.167 (18,999) 8,338 (5,781) 718.083 181.490 221 4.167 7,670 9.759 11,206 762,913 6? Wonlimied ) KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Combining Balance Sheet June 30. 2005 (With summarized financial information for the year ended June 30. 2004) Assets Equity in central treasury Temporary investments Receivables: State of Alaska Land sales contracts, due within one year Property taxes Notes receivable Other Due from other funds Land sale contracts, due after one year Notes receivable, due after one year Total Liabilities and Fund Balances (Deficits) Liabilities: Accounts payable Employee benefits accrued and withheld Customer deposits Unearned revenues Due to other funds Total liabilities Fund balances (deficits): Unreserved (deficits): Designated for subsequent year expenditures Undesignated Total fund balances (deficits) Totals $ 36,052 458 1,464 156 — — — — 2,881 36,208 458 4,345 — 4,500 — 326,394 14,211 (2,388) 326,394 18,711 (2,388) $ 362.602 19,169 1,957 64 (Continued) Woodland Buildings Acres Street and Light Service Kodiak Arts grounds Area Council $ 55,828 19,169 — 305,874 — — 900 — 1,957 $ 362,602 19,169 1,957 $ 36,052 458 1,464 156 — — — — 2,881 36,208 458 4,345 — 4,500 — 326,394 14,211 (2,388) 326,394 18,711 (2,388) $ 362.602 19,169 1,957 64 (Continued) 65 Trinity Acres Tourism Lighting NEssion Lake Fern Fuller Trinity Acres Totals Development District Tide Gate Trust Paving 2005 2004 — — 4,570 198.995 — 857.787 586,255 — — — — — 2.012,699 1.993.400 — — — — — 20.030 55,101 — — — — — 8.000 8,000 — — — — — 14.479 17,829 — — — 53.374 — 53.374 — 2,873 — — 16,219 — 25.105 619,634 — — — — — 93.244 313.060 — — — — — 34.272 42.056 — — — 487,271 — 487.271 — 1873 — 4,570 755,859 — 3.606.261 3,636.335 — 147 469 — — 96,631 65.430 — — — — — 156 156 178 — — — — 1.203 678 — — — 556.864 — 599.136 659,782 1,397 3.490 — — 216.733 350.543 239,800 1,575 3.637 469 556,864 216,733 1.047.669 965,846 — — — — — 143,676 256,860 1.298 (3.637) 4,101 198.995 (216,733) 2.414,916 2.413,629 1.298 (1637) 4,101 198.995 (216.733) 2.558.592 2.670,489 2,873 — 4,570 755.859 — 3.606 261 3,636,335 65 Revenues: Property taxes State sources Federal sources Land sale proceeds Licenses, permits, fees, and other local revenues Investment income Other Total revenues Expenditures: Debt service Community development department General and administrative Health and sanitation department Services district maintenance Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in from other funds Transfers out to other funds Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Fund balances (deficits), at beginning of year Fund balances (deficits), at end of year 122,827 37,548 (2.295) (11,704) 810,197 54.142 29.560 61,730 S 933,024 91.690 27.265 50.026 66 (Continued) ' KODIAK ISLAND BOROUGH Road Nonmajor Special Revenue Funds Women's Combining Statement of Revenues. Expenditures. 111onashka and Chan_es in Fund Balances (Deficits) ' Year ended June 30, 2005 Bay Road ( With summarized financial information for the year ended June 30. 2004 t Department District Service Area Fire and Road Service Areas 60.907 122,827 37,548 (2.295) (11,704) 810,197 54.142 29.560 61,730 S 933,024 91.690 27.265 50.026 66 (Continued) Fire Road Fire Women's Kodiak 111onashka Protection Bay Fire Airport Fire Bay Road Area No. i Department District Service Area S 330,757 60.907 15,520_3 .939 — 297 — — 142,371 — — — 5,214 9.030 — — 18,406 1.669 971 1.685 15 — — — 496,763 71.903 16.491 25.624 — 1,571 — — 373,936 51,541 29 854 — — — 36.474 373,936 53.112 29 37.328 122,827 18.791 16.462 (11,704) — 18.757 — - - — (18.757) - - 18.757 ( 18.757) — 122,827 37,548 (2.295) (11,704) 810,197 54.142 29.560 61,730 S 933,024 91.690 27.265 50.026 66 (Continued) 67 1 Continued) Fire and Road Service Areas Road Federal and State Grant Programs hild Care Service Women's Bay Bay View Road Service Area Coastal Assistance District No. 1 Service Area Service Area No. 2 Management Program L.E.P.C. land Sales 154,016 93.550 5.586 — — — — - - — — — 1.805 75.425 18,001 — — — — — — — — 22.738 - 20.000 - - - - - 1,000 4.835 5,051 40 95 — — — 13,695 — — — — — — — 79 158,851 118.601 5.626 95 1.805 75.425 18.001 37.512 — — — — 20,804 — — — 7.410 1,548 53 — 18,093 33,710 — — — 75.425 — — 192,147 113,941 5.372 — — — — — 199.557 115.489 5,425 — 20.804 75.425 18.093 33.710 (40.706) 3.112 201 95 (18.999) — (92) 3.802 — (92) 3,802 (40,706) 3.112 201 95 (18.999) 294.943 168.594 (2.106) 4,072 — 8,338 (5.689) 714,281 254,237 171,706 (1.905) 4.167 (18,999) 8,338 (5.781) 718.083 67 1 Continued) KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Combining Statement of Revenues. Expenditures. and Changes in Fund Balances (Deficits) Year ended June 30. 2005 (With summarized financial information for the year ended June 30.'_004 Revenues: Property taxes State sources Federal sources Land sale proceeds Licenses, permits, fees, and other local revenues Investment income Other Total revenues Expenditures: Debt service Community development department General and administrative Health and sanitation department Services district maintenance Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in from other funds 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 (deficits), at beginning of year Fund balances (deficits), at end of year (317.642) (4.995) (1.954) 308.880 — — 308.880 — — (8,763) Woodland (1,954) 335,156 Acres Street (434) Buildings and Light Service Kodiak Arts Grounds Area Council 417.545 — 56.704 5.874 480 — 433.419 480 56,704 641,061 5.475 58.658 (317.642) (4.995) (1.954) 308.880 — — 308.880 — — (8,763) (4,995) (1,954) 335,156 33.706 (434) $ 326,394 18.711 (3.388) 68 (Continued) 69 Trinity Acres Tourism Street Light Mission Lake Fern Fuller Trinity Acres Totals Development Service Area Tide Gate Trust Paving 2005 2004 — 3.721 2,456 — — 690.452 650.690 — — — — — 95.528 156,098 — — — — — 142.371 11445 — — — — — 22,738 9.206 20,886 — — — — 530.379 552.850 25 — — — — 52.826 31,601 — — — 75,000 — 75,094 222.117 20,911 3,721 2.456 75.000 — 1.609,388 1,635,007 — — — — — 1,571 — 45,000 — — — — 65.804 89,649 — 1,773 6.010 22.547 225 1? 22,923 1.649,926 — — — — — 75.425 74.847 — — — — — 347,934 401,052 45,000 1.773 6,010 22,547 225 1,713,657 2.215,474 (24,089) 1,948 (3,554) 52.453 (225) (104269) (580467) — — — — — 227.637 985,990 — — — — (216.508) (235,265) (266,780) — — — — (216.508) (7,628) 719,210 (24,089) 1,948 (3,554) 52.453 (216.733) (111,897) 138,743 25,387 (5,585) 7,655 146,542 — 2.670.489 2.531.746 1.298 (3.637) 4.101 198,995 (216,733) 2,558.592 2,670,489 69 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Fire and Road Service Areas - Fire Protection Area No. 1 Schedule of Revenues. Expenditures. and Changes in Fund Balances Budget and Actual Year ended June 30. 2005 (With summarized financial information for the year ended June 30, 2004) 70 2005 Variance positive 2004 Budget Actual (negative) Actual Revenues: Property taxes $ 321.000 330,757 9.757 309,435 Federal sources - 142,371 142,371 - Licenses, permits, fees, and other local revenues 5,500 5,214 (286) 4,294 Investment income - 18.406 18.406 21,800 Miscellaneous 500 15 (485) 995 Total revenues 327,000 496,763 169.763 336,524 Expenditures: General and administrative: Fire chief 70,000 63,388 6,612 61,086 Volunteers 22,000 16.350 5,650 23,715 Fringe benefits 19,860 19,989 (129) 20,899 Professional services 13,000 4,105 8,895 2,319 Support goods and services 135,100 90,784 44,316 125,809 Capital outlay 185,000 179,320 5,680 339,458 Depreciation 30,000 - 30,000 - Total expenditures 474,960 373,936 101,024 573,286 Excess (deficiency) of revenues over expenditures (147,960) 122,827 270.787 (236,762) Fund balances, at beginning of year 810,197 1,046,959 Fund balances, at end of year $ 933,024 810,197 70 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Fire and Road Service Areas — Womens' Bay Fire Department Schedule of Revenues. Expenditures, and Changes in Fund Balances Budget and Actual Year ended June 30, 2005 (With summarized financial information for the vear ended June 30, 2004) Variance positive Budget Actual (negative) Revenues: Property taxes $ 60,000 60,907 907 State sources — 297 297 Licenses, permits, fees, and other loca]revenues 9.000 9.030 30 Investment income Total revenues Expenditures: Debt service: Interest General and administrative: Personnel services Fringe benefits Professional services Support goods and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources: Transfers in from other funds: Special revenue funds Excess (deficiency) of revenues and other financing sources over expenditures Fund balances, at beginning of year Fund balances, at end of year 69,500 71,903 2,403 1.571 (1,571) 2004 58,744 3,995 9.441 1.878 3,000 618 2,382 3,163 650 96 554 3,219 — 30 (30) 110 68,200 52,236 15,964 40,807 22,725 (1,439) 24,164 244,091 94,575 53.112 41,463 291,390 (25,075) 18,791 43,866 (217,332) 16.700 18.757 2.057 16,780 $ (8.375) 37,548 45,923 (200,552) M KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Fire and Road Service Areas — Kodiak Airport Fire District Schedule of Revenues, Expenditures. and Changes in Fund Balances Budget and Actual Year ended June 30, 2005 (With summarized financial information for the year ended June 30, 2004) Variance positive Budget Actual (negative) Revenues: Property taxes $ 15.390 15.520 130 Investment income Total revenues Expenditures: General and administrative: Contracted services Support goods and services Total expenditures Excess of revenues over expenditures Other financing uses: Operating transfers out to other funds: Womens Bay Fire District Excess (deficiency) of revenues over expenditures and other financing uses Fund balances, at beginning of year Fund balances, at end of year 15,490 15,400 15,490 16,491 15,400 29 15,461 2004 Actual 15,382 283 15,665 27 27 (18,757) (18,757) (16,780) $ — (2,295) (2,295) (1,142) 29,560 30,702 $ 27,265 29,560 72 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Fire and Road Service Areas — Monashka Bav Road Service Area Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Year ended June 30, 2005 (With summarized financial information for the year ended June 30, 2004) Revenues: Property taxes Investment income 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 Budget $ 20,100 1,500 500 1,000 12,000 5,000 43,500 $ (21.900) 73 Variance positive 2004 Actual (negative) Actual 23,939 3,839 23,884 1,685 185 672 25,624 4.024 24,556 635 (135) 506 219 781 105 4,625 7,375 11,003 26.944 (21,944) 3,100 4,905 20.095 15.112 37,328 6.172 29,826 (11.704) 10,196 ( 5,270) 61,730 67,000 $ 50,026 61,730 73 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Fire and Road Service Areas — Service District No. I Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Year ended June 30. 2005 (With summarized financial information for the year ended June 30, 2004) 74 Variance positive 2004 Budget Actual (negative) Actual Revenues: Property taxes $ 152,000 154,016 2,016 141.320 Investment income 2,500 4,835 2,335 4.050 Total revenues 154,500 158,851 4,351 145,370 Expenditures: General and administrative: Personnel services 5,300 6,947 (1.647) 6,754 Support goods and services 2,100 463 1.637 500 Service district maintenance: Snow removal /sanding 95,000 50,316 44,684 69,785 Road grading /ditching 50,000 73.507 (23.507) 108,219 Repairs and maintenance 50,000 68.324 (18,324) 18,719 Total expenditures 202.400 199,557 2,843 203,977 Excess (deficiency) of revenues over expenditures $ (47,900) (40,706) 7.194 (58,607) Fund balances, at beginning of year 294,943 353,550 Fund balances, at end of year $ 254,237 294,943 74 KODIAK ISLAND BOROUGH Nonmajor Special Rex enue Funds Fire and Road Service ,areas — W'omens' Bay Road Service Area Schedule of Revenues. Expenditures, and Changes in Fund Balances Budget and Actual Year ended June 30. 2005 (With summarized financial information for the year ended June 30. 2004) 75 Variance positive 2004 Budget Actual (negative) Actual Revenues: Property taxes $ 92,500 93,550 1.050 90,276 Licenses, permits, fees, and other local revenues 20,000 20,000 — 20,000 Investment income 500 5,0551 4,551 2.191 Total revenues 113.000 118,601 5,601 112,467 Expenditures: General and administrative: Personnel services 750 862 (112) 1,109 Support goods and services 21,200 686 20.514 773 Service district maintenance: Snow removal/sanding 30.000 17,623 12.377 71,623 Road grading /ditching 31,650 23,422 8,228 54,077 Repairs and maintenance 30,000 72.896 (42.896) 35,976 Total expenditures 113,600 115,489 (1,889) 163.558 Excess (deficiency) of revenues over expenditures $ (600) 3.112 3,712 (51,091) Fund balances, at beginning of year 168,594 219,685 Fund balances, at end of year $ 171.706 168,594 75 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Fire and Road Service Areas — Bay View Road Service Area Schedule of Revenues, Expenditures, and Changes in Fund Balances (Deficits) Budget and Actual Year ended June 30, 2005 (With summarized financial information for the vear ended June 30, 2004) 76 Variance positive 2004 Budget Actual (negative) Actual Revenues: Property taxes $ 4,600 5,586 986 5,587 Investment income 200 40 (160) 61 Total revenues 4,800 5,626 826 5,648 Expenditures: General and administrative: Personnel services — 44 (44) 209 Support goods and services — 9 (9) 72 Service district maintenance: Snow removal/sanding 2,500 2.102 398 5,383 Road grading /ditching 1,000 1,852 (852) 7,755 Repairs and maintenance 1,300 1,418 (l 18) 300 Total expenditures 4,800 5,425 (625) 13,719 Excess (deficiency) of revenues over expenditures $ — 201 201 (8,071) Fund balance (deficit), at beginning of year (2,106) 5,965 Fund deficits, at end of year $ (1,905) (2,106) 76 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Fire and Road Service Areas — Service Area No. 2 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Year ended June 30, 2005 (With summarized financial information for the year ended June 30,'_004) Revenues: Investment income Expenditures: Support goods and services Total expenditures Excess of revenues over expenditures Fund balances, at beginning of year Fund balances, at end of year Budget Variance positive Actual (negative) 95 95 95 95 2004 Actual 41 41 4,031 4,072 77 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Coastal Management Schedule of Revenues, Expenditures, and Changes in Fund Balances (Deficit) Budget and Actual Year ended June 30, 2005 (With summarized financial information for the year ended June 30, 2004) Revenues: State sources — grants Total revenues Expenditures: Community development department: Planning and zoning Total expenditures Deficiency of revenues over expenditures Fund balances, at beginning of year Fund balance (deficit), at end of year Variance positive Budget Actual (negative) $ 25,650 1,805 (23.845) 25,650 1,805 (23.845) 25,650 20,804 25,650 20,804 $ — (18,999) $ (18,999) 4.846 4,846 2004 Actual 44,649 44.649 44,649 44,649 (18.999) — 78 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Child Care Assistance Program Schedule of Revenues. Expenditures. and Changes in Fund Balances Budget and Actual Year ended June 30. 2005 (With summarized financial information for the vear ended June 30, 2004) 79 Variance positive 2004 Budget Actual (negative) Actual Revenues: State sources — grants $ 79,750 75,425 (4.325) 69,517 Total revenues 79,750 75,425 (4,325) 69,517 Expenditures: Health and sanitation department: Personnel 66,240 66,130 110 63,658 Support goods and services 13,510 9,295 4,215 11,189 Total expenditures 79.750 75,425 4,325 74.847 Excess of revenues over expenditures $ — — — (5,330) Fund balances, at beginning of year 8,338 13,668 Fund balances, at end of year $ 8.338 8.338 79 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds L.E.P.C. Schedule of Revenues, Expenditures, and Changes in Fund Balances (Deficit) Budget and Actual Year ended June 30, 2005 (With summarized financial information for the year ended June 30, 2004) Variance positive Budget Actual (negative) Revenues: State sources: L.E.P.C. grant Emergency operations planning grant Total revenues Expenditures: General administrative: Personnel services Support goods and services Contracted services Total expenditures Deficiency of revenues over expenditures Fund balance (deficit), at beginning of year Fund deficits, at end of year $ 35,937 35,937 12,087 7.000 $ — (92) ( (5.689) $ (5.781) 18,001 (17,936) 12,563 (476) 5,530 1,470 — 16,850 2004 Actual 20,000 17,937 37,937 24,097 2,693 16,836 43,626 (5,689) (5,689) 80 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Land Sales Schedule of Revenues. Expenditures, and Changes in Fund Balances Budget and Actual Year ended June 30. 2005 (With summarized financial information for the vear ended June 30, 2004) Fund balances, at beginning of year Fund balances, at end of year Budget Revenues: Land sale proceeds $ 205.000 Licenses, permits, fees, and other (negative) local revenues 1,000 Investment income 9,206 Gravel sales 25,000 Other 13,695 Total revenues 231,000 Expenditures: (25,000) General and administrative: 79 Personnel services 21,000 Contracted services 10,000 Support goods and services 200,000 Total expenditures 231,000 Excess of revenues 5,496 over expenditures — Other financing sources /(uses): 183.286 Transfers in from other funds: 33,710 Hospital Enterprise Fund — Transfers out to other funds: General fund — Net other financing sources (uses) — Deficiency of revenues and other financing sources over expenditures and other financing uses $ — Fund balances, at beginning of year Fund balances, at end of year 650,000 ( 50,000) 600,000 3.802 3.802 591,660 714,281 122,621 $ 718,083 714,281 81 Variance positive 2004 Actual (negative) Actual 22,738 (18 ^_.262) 9,206 1.000 — 1,000 13,695 13,695 - - (25,000) 40,000 79 79 80 3 7,5 12 (193,488) 50.286 11,500 9.500 21,314 5,496 4,504 8,195 16.714 183.286 29,117 33,710 197,290 58 3.802 3,802 (8,340) 650,000 ( 50,000) 600,000 3.802 3.802 591,660 714,281 122,621 $ 718,083 714,281 81 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Buildings and Grounds Schedule of Revenues. Expenditures. and Changes in Fund Balances Budget and Actual Year ended June 30. 2005 (With summarized financial information for the year ended June 30. 2004) Revenues: Rental income Investment income Total revenues Expenditures: General and administrative: School buildings Borough building Mental health center Parks operation and maintenance Total expenditures Deficiency of revenues under expenditures Other financing sources (uses): Transfers in from other funds: Facilities Fund General Fund Transfers out to other funds: General Fund Net other financing sources Deficiency of revenues and other financing sources over expenditures Fund balances, at beginning of year Fund balances, at end of year Variance positive 2004 Budget Actual (negative) Actual $ 405.000 417.545 12.545 408.100 405,000 423.419 18,419 408.100 346.000 366.007 (20,007) 263.800 258,301 5.499 11,970 5.469 6,501 644.270 641.061 k— �j k 208.970 208.970 $ (30.300) 3.309 21.628 208,880 (90) 300.291 343.313 5,270 13,412 562.286 (154.186) 268,540 50,670 (8.762) 21,538 (34,976) 335,156 370.132 $ 326,394 335.156 82 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Woodland Acres Street Light Service Area Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Year ended June 30, 2005 (With summarized financial information for the vear ended June 30,'_'004) Revenues: Investment income Expenditures: General and administrative: Support goods and services Capital outlay Total expenditures Deficiency of revenues under expenditures Fund balances, at beginning of year Fund balances, at end of year Variance positive Budget Actual (negative) $ 1,000 480 (520) 4,030 5,475 (1,445) 970 — 970 5,000 5,475 (475) $ (4,000) (4,995) (45) '_3.706 $ 18,711 ?004 Actual 270 5,448 5,448 (5,178) ?8.884 '3,706 S, KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Kodiak Arts Council Schedule of Revenues. Expenditures, and Changes in Fund Balances (Deficits) Budget and Actual Year ended June 30, 2005 (With summarized financial information for the vear ended June 30. 2004) 84 Variance positive 2004 Budget Actual (negative) Actual Revenues: Licenses, permits, fees, and other local services: Reimbursement from Kodiak Arts Council $ 56,910 56,704 (206) 53,838 Total revenues 56,910 56,704 (206) 53,838 Expenditures: General and administrative: Personnel services 44,410 45,874 (1,464) 44,411 Fringe benefits 12,500 12,294 206 9,427 Support goods and services — 490 (490) 434 Total expenditures 56,910 58.658 (1,748) 54,272 Deficiency of revenues over expenditures $ — (1,954) (1,954) (434) Fund balance (deficit), at beginning of year (434) — Fund deficits, at end of year $ (2.388) (434) 84 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Tourism Development Schedule of Revenues. Expenditures, and Changes in Fund Balances Budget and Actual Year ended June 30, 2005 (With summarized financial information for the vear ended June 30. 2004) Revenues: Transient accommodations tax Investment income Total revenues Expenditures: Community development: Contributions Total expenditures Excess (deficiency) of revenues over expenditures Fund balances, at beginning of year Fund balances, at end of year Budget $ 45,000 45.000 45,000 Variance 85 positive 2004 Actual (negative) Actual 20,886 (24.114) 56.177 25 25 355 20.911 (24,089) 56,532 45,000 — 45,000 45.000 — 45,000 (24,089) (24,089) 11,532 85 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Trinity Acres Street Lighting District Schedule of Revenues, Expenditures, and Changes in Fund Balances (Deficits) Budget and Actual Year ended June 30, 2005 (With summarized financial information for the year ended June 30, 2004) 2004 Actual 3,599 3.599 585 1,099 7,500 9,184 (5,585) (5,585) 86 Variance positive Budget Actual (negative) Revenues: Property taxes $ 3,600 3,721 121 Proceeds from issuance of loans 7,260 — (7,260) Total revenues 10,860 3,721 (7,139) Expenditures: General and administrative: Personnel services 655 — 655 Support goods and services 2,030 1,773 257 Capital outlay 8,175 — 8,175 Total expenditures 10,860 1,773 9,087 Excess (deficiency) of revenues over expenditures $ — 1,948 1,948 Fund balance (deficit), at beginning of year (5,585) Fund deficits, at end of year $ (3,637) 2004 Actual 3,599 3.599 585 1,099 7,500 9,184 (5,585) (5,585) 86 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Mission Lake Tide Gate Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Year ended June 30, 2005 (With summarized financial information for the year ended June 30, 2004) 87 Variance positive 2004 Budget Actual (negative) Actual Revenues: Property taxes $ 2,460 2,456 (4) 2.463 Proceeds from issuance of loans 29,890 — (29,890) — Other 20,000 — (20,000) 10,000 Total revenues 52,350 2.456 (49,894) 12.463 Expenditures: General and administrative: Personnel services 1,000 3,941 (2,941) 4,624 Professional services — 715 (715) — Support goods and services 200 1,354 (1,154) 184 Capital outlay 51,150 — 51,150 — Total expenditures 52,350 6,010 46,340 4,808 Excess (deficiency) of revenues over expenditures $ — (3,554) (3,554) 7,655 Fund balances, at beginning of year 7,655 — Fund balances, at end of year 4,101 7.655 87 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Fem Fuller Trust Schedule of Revenues, Expenditures. and Changes in Fund Balances Budget and Actual Year ended June 30, 2005 (With summarized financial information for the year ended June 30. 2004) Revenues: Fuller trust proceeds Total revenues Expenditures: General and administrative: Distributions to beneficiaries Support goods and services Total expenditures Excess of revenues over expenditures Fund balances, at beginning of year Fund balances, at end of year Budget 24,500 24,500 $ (24,500) Variance positive Actual (negative) 75,000 75,000 75,000 75,000 22,500 2,000 52,453 76,953 200.1 Actual 171,042 171,042 24,500 X4.500 146,542 146,542 88 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Trinity Acres Paving Schedule of Revenues, Expenditures, and Changes in Fund Balances (Deficits) Budget and Actual Year ended June 30. 2005 (With summarized financial information for the year ended June 30, 2004) Revenues: Special assessments Total revenues Expenditures: Debt service: Interest General and administrative: Support goods and services Total expenditures Deficiency of revenues over expenditures Other financing uses: Transfers out to other funds: Various Borough Projects Net other financing uses Deficiency of revenues over expenditures and other financing uses Fund balances, at beginning of year Fund balance (deficit), at end of year Budget $ 22,140 22,140 7,910 14,230 22,140 Variance (216,508) (216,508) — (216.508) (216.508) — (216,733) (216,733) — $ (216.733) — 89 positive 2004 Actual (negative) Actual — (22,140) - - (22,140) — — 7,910 — 225 14,005 — 225 21,915 — (225) (225) — (216,508) (216,508) — (216.508) (216.508) — (216,733) (216,733) — $ (216.733) — 89 1 r 1 1 DEBT SERVICE FUNDS 7 1 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. NONMAJOR 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 impro\ projects relating to grants received from the State of Alaska. KODIAK ISLAND BOROUGH Nonmajor Capital Project Fund - State Capital Grants Balance Sheet June 30. 2005 (With summarized financial information at June 30, 2004) Assets Receivables: Due from federal government Due from other funds Due from State of Alaska Total Liabilities and Fund Balances Liabilities: Accounts payable Retainages payable Due to other funds Total liabilities Fund balances: Unreserved (deficits): Undesignated Total fund deficits Total See accompanying independent auditors' report. 2005 $ 6,355 248,832 $ 255,187 $ 35,760 22,270 301,650 359.680 (104,493) (104,493) $ 255,187 2004 6,750 2,442 284,707 293,899 100,944 22,270 268,768 391,982 (98.083) (98,083) 293,899 93 KODIAK ISLAND BOROUGH Nonmajor Capital Project Fund - State Capital Grants Statement of Revenues, Expenditures, and Changes in Fund Deficits Year ended June 30, 2005 (With summarized financial information at June 30, 2004) Revenues: State sources Federal sources Total revenues Expenditures: Capital improvements: Schools General Total expenditures Deficiency of revenues under expenditures Fund deficits, at beginning of year Fund deficits, at end of year See accompanying independent auditors' report. 2005 $ 331,093 187,012 518,105 12,717 511,798 524,515 (6,410) (98,083) $ (104,493) 2004 344.325 45.046 389.371 31,509 415.455 446.964 (57,593) (40.490) (98,083) 94 r m r r m m m= m i m m m m m m m m m KODIAK ISLAND BOROUGH Noomajor Capital Projects Foods Schedule of Capital Projects Year ended June 30, 2005 M 1 F.ncundrrances Appropriations Total Expenditures Total flpcxpcudcd Curreul unencumbered Project Status p riot Lot* appropriations ten 2 or 01(5 expenditures balance encundrrauces balance nu. Project 101(X) (apical p"ol"ls 110.696 - Educations School Repair KI IS Roof Opel $ 126,770 - 126,770 80.714 10,752 91,466 35.304 - 35, i(la (0100 410 -484 Notching School Complete 54,330 4 - 54,330 54,330 - 54,330 M I 410 -601 IIS Roof Repair Complete 125,398 - 125,398 125,398 - 125.398 - 50,000 - - 50,1X0 0411X1 410 487 Weatheiproof Iliph School Complete - 50,000 - 50,000 - - - 78,880 1,120 - 1,120 MMI 410488 IRMA('IicketInstall Complete 80.000 - 80,0(X) 78,880 - 10(1.000 - I(X),(XX) 01101 410 -489 KHS Asbestos /C'agel Complete 100.(0) - I()().((X) 50,000 - 37,859 - - - 37,859 12,141 - t_ 2 ,141 01101 410.490 Fast ;aid Main Paint Refinish (;y,) Floors Open Complete 50,M) - 60,000 - (0,(X0 55,691 - 55,691 4,309 - 4.309 11.1104 ().1105 410 -491 4111 -492 Noidislar Road /park design Open 50,000 - 50,[X0 22,795 - 22,795 27.205 - 27,205 01106 410 491 KIIS Fmcrpency Generator Open 50,(X0 - 50,000 - - - 50,M) - 50,((X) 01107 410 -494 IRVIA roof cleaning and repair Complete 20,0IX) - 20,0(0 20.000 - 20,000 139,446 - (13,642) - - (11.642) 03116 410 -509 School Upgrade Opeo 125,804 - 125,804 53,917 139,446 55,503 - - 55,503 (1,5861 - ( 1,586) 04117 410 511 Upgrad" /Repam Match Open 53,917 - - 0I too 41(1 485 Matching School Complete 53.742 - 53,742 53,742 1,533369 - - 53,742 1,533,369 r - (3,3691 T M M 4 i lO Series G Bond HS Rnot Rcpan Open 1,539,1X0 - 1 530,000 968.106 771,737 - 771,737 196.369 - 196.169 (11 015 410 60i Scties I Bond IIS Root Repair Olen 968,106 - 6.210,0(X1 58,409 7,311 65,720 6,144,280 - 6044.280 04119 4_ -5(0 I IS Swiuunmp Pool Open 6.210.000 - 0'1(J8 410.60_ IIS Rcpaits \late h ht g Gran t t SIaIc l Complete 124,471 - 124,471 124,471 - 124.471 - 4,2(X1 -- - - 4.2(X1 14O 410 655 Fast Il"n.entary 1)oo-aN Open 4.210 - 4.200 20.000 - 6,721 - 1,965 - 8.686 11,314 - 11,314 01118 410 i12 Chutak Multi -lJ se Hafior Gym Renovation Open Open 20,000 - 2,251,315 - 2,251.315 430 - 430 2250,885 - 2_250.885 N/A 4_ Old Olen 339,883 - 339,883 358 - 358 339.525 - 139525 4102 4_ 420 317 L :nscnBay - SchoolRepair Ouiinkie Gant Renovation Open 1,858.255 - 1,858,255 647 - 047 1,857,08 - 1,857.608 4103 11, 410 486 IIS Repwrs Marching Gram (KIB) Complete 53,345 - 53,345 53,596 - 53,596 (251) - (251 ) 0,5(X)6 410 545 IIS Pool Filler Open 00,000 - 60,(1(X) - 49,698 49,698 10,302 21,044 , (10.742) 0i(X)') 4_ -its Repair Spelling Coocrete Olen 237,918 - 237.918 - - - 2371918 -" 2,17.918 05010 420 515 KITS Aslwslos Hoor Removal Open 3(9.704 - 304,704 - - - 304.704 725.708 -- - .104,704 725,708 0SM 1 420 -515 Hoot Covering Replacement Open 725,708 - 725,708 - - - 250,((X) -- 250,(XX) 0501] 4_ -515 Kaiak illgh School IIVAC Oleo 250,(X0 - 250.0(X) - - - 596.020 - 596-11, 051111 4311 -515 KHS Exterior insulation &Windows Open 596,020 - 596,020 - - - 523,5(4 - 523,504 05014 420 -515 Kodial, IIS /MS Cplx Roof Upprade Open 523,504 - 523,504 - - - 4,191100 -- 4,190,(X X) 05015 4_ -515 HS Vov ed /class"oom Reclaimanon Open 4.190,0(1) - 4,190,(X0 - - - 52(1,((X) -- 52O.(XX) 05011, 4_'1) 515 Fasl F.lemenla,y IIVAU Itpgrade Open 520,000 - 5201M - - - 1.182.336 - 1.182.136 - 05017 420 -515 Leaning Cculcr Renovation Olen 1,182.336 - 1,182,336 - - - 65000 650,(X8) DsMS 4`11 -515 IIS Pohl Reclaimanon Olen 650,0(0 - 650,(X0 - - - Total educiloon 23599,726 23, 599,726 3,274,096 69,726 3.343,822 20,255,904 21.044 20.214,8(.4) (X11)' t - :grital la ojccts 410 -698 - I'tilines E)uy side Uodcrprnund Electric Open 22.(X0 - 22(X0 - - - 220X) - 22,1(X) 182 4to -692 Some Fail and Rodeo Wuter Open 25, 00 - 25.W0 24.024 976 25,(X0 -- -- - Tocd utility projects 47,000 - 47,(X0 24,024 976 25.1X0 2208) 12.((X1 03115 t'apitnl pt ojrcic - hearth: hospital Assessment Needs Olen 54.000 - 54,0(0 - - - 54,M) - 5400 Total health projects 54.000 - 54,(X0 - - -- 54.1(0 -- 541X0 M KODIAK ISLAND BOROUGH Nonmajor Capital Projects Funds Schedule of Capital Projects Year ended June 30. 2005 Encundrrances Project Approprialioru Total Expenditures Total Unexpended Current Unencumbered off. Project status nor i1x appropriations - - Prior 27X15 expenditures baLmce eocmnbratces ba4urce Capital projects - Other: N/A 410 -400 I Indesignated Projects Open $ 692.078 — 692.078 18,539 — 18639 673,539 — 673,539 85 410 -471 Village Metals Removal Open 150,000 — 150,000 120,994 262 121,256 28,744 — 28.711 105 410 -482 Autos Larsen Dock Opeu 140,000 — 140,000 139,612 1,750 141.362 (1.362) — (1.362) 114 4106X2 State Aiiporl Improvements Open ILIU) — IISX0 (0 — 60 10.940 — 10,940 45007 410 -546 Mission Lake 7 ide Gate Complete 55,000 — 55,000 — 52,880 52,880 2,120 — 2.120 133 410 -658 Red Cross Building Repairs Open 12.000 — 12,000 11,203 — 11,203 797 — 797 142 430 -(r42 Clean Water Fund /Kau luk Complete 50.000 — 50.000 23,192 — 23,192 26.808 — 26,808 1 13108 410 495 Borough Building Parking Open 50,000 — 50,0(X) — — — 50,000 — 50,(KK) 111109 410 496 11 nigh Air Handling Open 10,000 — 100x) — — — I0,(KK) — 1000 031111 410 -497 K113 emergency Generator Open 20,00(.) — 20,0(70 2,353 — 2,353 17,647 — I7.647 43111 410 -498 K)B Security Doors Open 8.000 — 800 — — — 8.000 — 8.(XX) 01114 430.507 CIAP Grant Open 189.985 — 189,985 55,549 19,759 75,308 114,677 — 114.677 (51X)1 410 -546 Survey l Optic Pass "I'lot Open 2,473,699 — 2.473,699 — 2,403,507 2,403,507 70,192 — 70.192 05!X1' 4_'051'1 Gailhyuake Cvalualion Project Open 500,(X)o — 500,000 — 48,081 48,081 451.919 168.558 283,361 (151X13 411E S4_' Kodiak('adastral Open 400X) — 40.M) — 55,877 55,877 (15,8771 — (15.877) 05(X15 410 -544 AK Coastal Management Open 46.000 — 46.00 — 46,000 46,000 — — 146 410 -663 BMX Bike -find Open 68.920 — 68,920 49.278 — 49,278 19,642 — 19.642 1 i9 410675 Bon,ugh larks Open 26,500 — 26,500 27,106 — 27,106 (600) — ((06) 164 430 (45 Waite Management h,,p Open 1,741.4()) — 1.741,4(X) 664,751 271,963 936,714 804.686 — 804.696 160 430-649 Clean Witter Kaduk Complete 350,000 — 350,(X0 89,189 — 89,189 2(0,811 -- 2(X).811 173 410 -683 Bayside Classnwm Add Open 75,000 — 75,000 48,199 — 48,199 26.801 — 26.801 174 410 684 13ayside Storage /Bay Add Open 400.000 — 400,00 3,020 — 3,020 396,980 — 396.980 177 430687 Ali( OII Liusen Boat Ramp Open 560.000 — 560,0(X) 595.407 — 595,407 (35,407) 10,960 (46367) 184 4 }(1.604 Oil Spill Response Lrluip Open 400.(X0 — 4(X)1XX) 399,411 — 399,411 589 — 589 (X)104 430609 "I'ideG;tie Open 20,000 — 20,000 20.000 1,080 21,080 (1,080) — (1,080) (X)106 410 -00 MIS Study Complete 30,000 — 30.000 29.983 — 29,983 17 — 17 01106 430 -625 Volunteer Fire Assistance Program Complete 3,699 — 3,699 3,699 — 3,699 — — ` — 1 0_ 430 -648 ADF&-G Research Study Open 200,000 — 200,000 112.250 2,045 114,295 85,705 — 95.705 N/A 410 (,24 Women's Hay Comm my Plan Open 33.380 — 33.380 22,380 — 22.380 1 LUX) -- 1 1.(X)(1 N/A 430 -542 Woneds l3ay Drainage Open — — — — 19,630 19.630 (19.630) -- (19.631) 0308 430518 1lomcland Security Open — — — — — — — 4104 410 -701 TrinityPa,ingRoad Open — — — 215,508 1,001 216.509 (216.509) — 1216.5091 4106 N/A SIISGPGr:m( Open 138.151 — 138.151 7,105 45,746 52.851 853(X) — 857(X) 02110 410 -506 (JS Sind) Open 20.000 20,000 20,276 20,276 (276) (276) fond - capital projects other 8,514,812 8,514,812 2,679,064 2.969.581 5,648,645 2,866.167 179,518 2,686,649 Total all capital projects $ 32,215,538 32,215,538 5,977,184 3,040,283 9,017,467 23,198.071 200.562 22.997.509 96 1 I 1 F� 1 E I 1 r� I 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. KODIAK ISLAND BOROUGH Municipal Solid Waste Collection and Disposal Fund Schedule of Revenues. Expenses, and Changes in Fund Equity Budget and Actual Year ended June 30. 2005 (With summarized financial information for the year ended June 30. 2004) Operating revenues: Solid waste collection Solid waste disposal Other Operating expenses: Personnel services Refuse collection Refuse disposal Professional services Repairs and maintenance Landfill closure and postclosure costs Depreciation General and administration Contributions Recycling services Operating income (loss) Other income (expense): Interest income Interest expense Change in fund equity Fund equity, beginning of year Fund equity, end of year See accompanying notes to financial statements. 3,345,656 $ 3,160,795 J,JTJ,VJV 97 2005 Variance - favorable 2004 Budget Actual (unfavorable) Actual $ 2,210,300 2,184,612 (25.688) 2.25 1,245 1,111,000 956,087 (154,913) 951,789 8,000 1,157 (6.843) 6.742 3,329,300 3,141,856 (187.444) 3.209,776 570,120 596,385 (26,265) 497,113 1,328,000 1,418,830 (90,830) 1,324,943 306,000 355,995 (49,995) 230,639 190,000 207,282 (17,282) 152,837 30,000 35,505 (5.505) 27,909 175,000 255,498 (80,498) 246,929 258,000 208,330 49,670 259,800 206,580 153,555 53,025 189,442 - 9,853 (9,853) 5,445 75,000 73,001 1,999 68,506 3,138,700 3,314.234 (175,534) 3,003,563 190,600 (172,378) (362,978) 206,213 5,000 35,631 30,631 7,114 - (48,114) (48,114) (47,564) $ 195,600 (184,861) (380,461) 165,763 3,345,656 $ 3,160,795 J,JTJ,VJV 97 KODIAK ISLAND BOROUGH Hospital Facilities Fund Schedule of Revenues, Expenses, and Changes in Fund Equity Budget and Actual Year ended June 30, 2005 (With summarized financial information for the year ended June 30. 2004) See accompanying notes to financial statements. 98 2005 Variance favorable 2004 Budget Actual (unfavorable) Actual Operating revenues: Lease income 720,000 1,153,333 433,333 792,224 Donations — — — 1,305 720,000 1,153,333 433,333 793,529 Operating expenses: Personnel services — 6,969 (6,969) 7,002 Professional services — — — (7,977) Depreciation 1,276,560 1,238,064 38,496 1,261,302 Maintenance and repairs — 19,360 (19,360) 28,398 General and Administration — 10,810 (10,810) — 1,276,560 1,275,203 1.357 1,288,725 Operating loss (556,560) (121,870) 434,690 (495,196) Other income (expense): Interest income — 84 84 Interest expense (82,000) (69,784) 12,216 (80,419) Contribution to the State of Alaska — — — (1,170,000) Contribution to Providence Hospital — — — (130,000) Loss before transfers (638,560) (191,570) 446,990 (1,875,615) Other financing sources (uses): Transfers in — 125,000 125,000 — Transfers out (295,602) (295,602) — (1,644,560) Net other financing uses (295,602) (170,602) 125,000 (1,644,560) Change in fund equity $ (934,162) (362,172) 571 (3,520,175) Fund equity, beginning of year 18,653,348 22,173,523 Fund equity, end of year $ 18,291,176 18,653,348 See accompanying notes to financial statements. 98 KODIAK ISLAND BOROUGH 911 Services Fund Schedule of Revenues. Expenses, and Changes in Fund Equity Budget and Actual Year ended June 30, 2005 (With summarized financial information for the year ended June 30. 2004) Operating revenues: Customer charges Operating expenses: Personnel services Telephone services Change in fund equity Fund equity, beginning of year Fund equity, end of year Budget $ 69,000 10,500 58,500 69,000 See accompanying notes to financial statements. Variance 99 favorable 2004 Actual (unfavorable) Actual 26.721 (42.279) 101,435 3,000 7,500 9.000 66,178 (7,678) 71,427 69,178 (178) 80,427 (42,457) (42,457) 21,008 75,101 54,093 $ 32,644 75.101 99 KODIAK ISLAND BOROUGH Kodiak Fisheries Research Center Fund Schedule of Revenues. Expenses, and Changes in Fund Equity Bud and Actual Year ended June 30. 2005 (With summarized financial information for the year ended June 30. 2004) Operating revenues: Rents and royalties Operating expenses: Personnel services Employee benefits Miscellaneous Depreciation Cleaning and janitorial Heating Electrical Plumbing Air conditioning Elevators Operating income Other income: Investment income Interest expense Change in fund equity Fund equity, beginning of year Fund equity, end of year See accompanying notes to financial statements. 11 200-5 Variance favorable 2004 Budget Actual (unfavorable) Actual $ 1,589,700 1,566,686 (23,014) 1.559.600 97,350 169,219 (71.869) 155.677 54,590 57,098 (2,508) 45,445 202,510 67,328 135,182 80,774 744,114 793,562 (49,448) 745,259 47,000 37,487 9,513 35,079 87,000 114,966 (27,966) 80,683 185,500 156,285 29,215 157,537 77,240 13,643 63,597 12,795 2,000 - 2,000 19 2.000 2,387 (387) 1,991 1,499,304 1.411,975 87.329 1,315.259 90,396 154,711 64,315 244,341 40,000 35,097 (4,903) 16,863 (466,820) (466.813) 7 (485,713) $ (336,424) (277,005) 59,419 (224,509) 11,407,225 11,631, 734 $ 11,130,220 11,407,225 See accompanying notes to financial statements. 11 SUPPLEMENTARY SCHEDULES KODIAK ISLAND BOROUGH Summary of Bonded Debt Service Requirements to Maturity June 30. 2005 Annual principal and interest requirements on General Obligation Refunding and Construction Bonds. Year Principal Interest Total 2006 $ 1,810,000 1,356,906 3.166,906 2007 2.095,000 1.331,714 3.426.714 2008 2,200.000 1,260.451 3.460,451 2009 2.290,000 1.166.851 3.456,851 2010 2,385,000 1,069,206 3.454,206 2011 2,490.000 967,194 3.457,194 2012 2,235,000 858,176 3.093,176 2013 2,325,000 766,071 3.091,071 2014 2,425,000 671.261 3,096,261 2015 980,000 569,821 1,549.821 2016 1,020,000 530,621 1,550,621 2017 1,055,000 489,351 1,544,351 2018 1.105,000 445,939 1,550,939 2019 1.150,000 400,209 1.550,209 2020 1.205,000 348.989 1,553,989 2021 1.255,000 294,764 1.549,764 2022 1,310,000 238.289 1,548,289 2023 1.375,000 178,583 1,553,583 2024 1,440,000 111,420 1.551,420 2025 815,000 40.750 855,750 $ 32.965,000 13,096.566 46,061,566 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. Fiscal year 2006 2007 2008 2009 2010 2011 2012 2013 2014 Interest rate 4.00% 4.00% 4.30% 4.30% 4.30% 4.30% 4.30% 4.30% 4.30% Interest due August 15 $ 199,448 198,248 197,048 172,323 146,523 119,648 91,590 62,350 31,820 $ 1,218,998 Principal due February 15 60,000 60.000 1,150,000 1,200,000 1,250,000 1,305,000 1,360,000 1,420,000 1,480.000 9,285,000 Interest due February 15 199,447 198.248 197,047 172,322 146,522 119,647 91,590 62,350 31,820 Total 458,895 456,496 1,544,095 1,544,645 1,543,045 1,544,295 1,543,180 1,544,700 1,543,640 1.218,993 11,722,991 102 1 KODIAK ISLAND BOROUGH General Obligation Bonds, 2000 Series E Retirement Schedule 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 Bonds. 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. 3 2StS,1J1 9/J,000 Total 193,200 191,312 194,000 191,000 192,750 189,000 88,131 1,151,262 103 Interest Principal Interest due due due Fiscal year Interest rate August 1 February 1 February 1 2006 4.75% $ 24,100 145,000 24,100 2007 5.00% 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 3 2StS,1J1 9/J,000 Total 193,200 191,312 194,000 191,000 192,750 189,000 88,131 1,151,262 103 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 Bonds. 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. Fiscal year 2006 2007 2008 2009 2010 2011 Interest rate 6.90% 7.00% 7.00% 7.05% 7.109 7.15% Interest Principal Interest due due due August 1 February 1 February 1 Total $ 28,525 110,000 28,525 167,050 24,730 120,000 24,730 169.460 . 20,530 130,000 20,530 171,060 15,980 140,000 15,980 171,960 11,045 150,000 11,045 172,090 5,720 160,000 5,720 171,440 $ 106,530 810,000 106,530 1,023,060 104 KODIAK ISLAND BOROUGH General Obligation Bonds. 2003 Series A Retirement Schedule 2003A Bond Issue This issue, dated March 26, 2003, 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 2003 Series A Bonds. 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 establish an escrow fund sufficient to refund $1.920.000 outstanding principal amount of the Borough's General Obligation Bonds, 1993 Series A. and $1.030,000 outstanding principal amount of the Borough's General Obligation Bonds, 1994 Series A. Fiscal vear 2006 2007 Interest rate 2.50% 2.63% Interest Principal Interest due due due August 1 February 1 February 1 $ 26,081 1,005,000 26,081 13,519 1,030,000 13,519 $ 39,600 2,035,000 39,600 Total 1,057,162 ' 1,057,038 2,114,200 105 KODIAK ISLAND BOROUGH General Oblivation Bonds. 2004 Series A Retirement Schedule 2004 A Bond Issue This issue, dated July 7, 2004, 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 2004 A Bonds. The financial advisor for this issue was Western Financial Group. LLC. Legal opinion was rendered by bond council. Wohlforth, Vassar, Johnson & Brecht. The paying agent for this issue was J.P. Morgan Trust Company. These bonds were issued to provide for the costs of planning, design. and construction of capital improvements to schools within the Borough and to the development of an earthquake evacuation plan. Fiscal year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Interest rate 5.00% 5.00% 4.25% 4.25% 4.25% 4.25% 4.25 %n 4.25% 4.00% 4.00% 4.00% 4.10% 4.25% 4.30% 4.40% 4.50% 4.50 %r 4.63% 4.75% 4.80% Interest due January I $ 182,348 192,892 185,142 178,236 171,011 163,573 155,817 147,636 139,136 130,836 122,135 113,135 103,501 93,194 82.229 70.569 58,082 45.03' 31,04I 15.960 Principal due July 1 490,000 310,000 325.000 340,000 350,000 365.000 385,000 400,000 415,000 435,000 450,000 470,000 485.000 510,000 530.000 555.000 580.000 605.000 635.000 665,000 S 2.381.505 9.300.000 Interest due July 1 205,142 192,892 185,142 178,236 171,011 163,573 155,817 147,636 139,136 130,836 122,135 113,135 103,501 93,194 82,229 70.569 58,082 45,032 31,041 15,960 2,404,299 Total 877,490 695.784 695,284 696.472 692.022 692,146 696,634 695,272 693,272 696,672 694,270 696,270 692,002 696,388 694,458 696,138 696,164 695,064 697,082 696,920 14.085.804 106 KODIAK ISLAND BOROUGH General Obligation Bonds, 2004 Series B Retirement Schedule 2004 B Bond Issue This issue, dated November 16, 2004, 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 2004 B Bonds. The financial advisor for this issue was Western Financial Group, LLC. Legal opinion was rendered by bond council, Wohlforth, Vassar, Johnson & Brecht. The paying agent for this issue was J.P. Morgan Trust Company. These bonds were issued to provide for the costs of construction and improvements to the Kodiak High School and the construction of a community swimming pool. 107 Interest Principal Interest due due due Fiscal vear Interest rate Mav 1 November 1 November 1 Total 2006 3.00% $ 414,815 180,000 - 594,815 2007 3.00% 223,563 410,000 223,563 857,126 2008 3.00% 217.413 420,000 217.413 854,826 2009 3.00% 211,112 435,000 211,112 857,224 2010 3.00% 204,587 445,000 204,587 854,174 2011 3.50% 197.912 460,000 197,912 855.824 2012 3.50% 189,862 475,000 189,862 854,724 2013 3.50% 181,550 490,000 181,550 853,100 2014 4.00% 172,975 510,000 172,975 855,950 2015 4.00% 162.775 530,000 162,775 855,550 2016 4.00% 152,175 550,000 152.175 854,350 2017 4.00% 141,175 570,000 141,175 852,350 2018 4.00% 129,775 595,000 129,775 854,550 2019 4.50% 117,875 620,000 117,875 855,750 2020 4.50% 103.925 650,000 103,925 857,850 2021 4.50% 89,300 675,000 89,300 853,600 2022 4.50 %r 74,113 705.000 74,113 853,226 2023 5.00 %r 58,250 740.000 58,250 856,500 2024 5.00% 39.750 775,000 39.750 854,500 2025 5.00 %r 20.375 815.000 20375 855,750 $ 3,103,277 11.050,000 2,688.462 16.841,739 107 1 1 L� STATISTICAL SECTION i Statistical Tables provide report users with a better historical perspective in assessing current financial status and trends of the Borough. 7 u KODIAK ISLAND BOROUGH Kodiak. Alaska General Governmental Expenditures and Other Uses by Function (a) Last Ten Fiscal Years Fiscal General Health and year government sanitation (b) 1996 $ 2,941,453 1,390,307 1997 2,664,204 1,393.016 1998 2,848,474 1.506.992 1999 2,733,502 1.179,420 2000 2.540,354 730,888 2001 2,993,718 594,072 2002 3,027,097 280,847 2003 4,901,264 286.095 2004 2,472,563 257.037 2005 3,162,937 254,313 Other Education (b) transfers Total 4,678,830 267.594 9,278.184 5.083,942 250,000 9.391,162 6.466,321 571.296 11,393,083 7,044,970 — 10,957.892 6,500.341 55.905 9.827,488 6.824,276 323,299 10,735,365 7,363,880 55.034 10.726,858 7,404,122 480,476 13,071,957 7,885,193 399,290 11,014,083 8,100,370 — 11,517,620 (a) Includes general fund only. (b) Includes operating transfers for this function Source: Borough general ledger 108 KODIAK ISLAND BOROUGH Kodiak. Alaska General Revenues by Source (a( Last Ten Fiscal Years (a) Includes general fund only Source: Borough general ledger ME Licenses, Inter - Fiscal permits, governmental Investment Operating Miscellaneous year Taxes and fees revenue income transfers revenue Total 1996 S 5.693,539 285.100 2,396.704 452.196 — — 8.827.539 1997 5,582,037 108.483 2.396 272 371.414 9,672 — 8.467.878 1998 7.589.595 86.138 2,739.075 333,243 — — 10,748.051 1999 7,694,387 86.523 2,055.803 238.515 32.632 — 10,107,860 2000 8,057,781 92,609 1,770.038 358,351 129,829 — 10.408.608 2001 8,135,184 95.129 2,135,483 583,633 18,154 44.945 11.012.528 2002 8.017.344 95,857 3,397.240 294,675 200,000 140.901 12,146.017 2003 8,028,513 153,727 2,683,460 171,532 1,000.000 — 12,037 232 2004 8,165,326 187,898 2,010.431 105,812 850.000 — 11.319,467 2005 9,378,816 161,621 1,925,405 265,392 — — 11,731.234 (a) Includes general fund only Source: Borough general ledger ME KODIAK ISLAND BOROUGH Kodiak. ALis:a Property Fax Les ies and Collections Last Ten Fiscal Years Percent of Percent of Percent of current Delinquent total tax Outstanding delinquent Fiscal Total Current tax levy tax Total tax collections delinquent taxes to ' tear tax levy collections collected collections collections to tax levv taxes tax levy 1996 S 5.466.066 5.249.168 96.0 S 56.531 5.305.699 97.1 S '89._10 5.3 1997 5.576.773 5.478.939 98.2 96.490 5.575.4'9 100.0 192.72' 35 ' 1998 7.384,490 7,131.678 96.4 77.576 7.199.254 97.5 381.180 5_2 1999 7.704.172 7,575.491 98.3 314.367 7,889.858 102.4 234.738 3.0 2000 7.743.649 7.507.018 96.9 175,066 7.682.084 992 316.452 4.1 2001 8.164.127 7.912.859 96.9 204.458 8.117.317 99.4 364.044 4.5 2002 8.411.173 8.313.881 98.8 362.37 8,676.258 103.2 292,823 3.5 2003 8,395.117 8.167,437 97.3 178.885 8.346.322 99.4 312.925 3.7 2004 8,462.404 8.125.629 96.0 69.831 8.195,459 96.8 386.801 4.6 1 2005 8.785.412 8.139.198 92.6 288.394 8.427,592 95.9 34.1.309 19 Source: Borough general ledger lit 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 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Ratio of total assessed to Real property Personal proper[", Total total Fiscal Assessed Full value Fussed Assessed Full value Assessed Full value full value year value determination value determination value determination determination 1996 S 538,627,500 560,459,900 101,835.076 318.741,600 640.462.576 879 .201.500 72.85 1997 549.456,964 565 .281,400 104,677,687 312,465,100 654.134,651 877,746,500 74.52 1998 573,742,998 587,145,000 107,599.894 310.049,900 681.342,892 897.194,900 75.94 1999 577.551,709 599,696,900 109,304,683 297,058,600 686,856.392 896,755.500 76.59 2000 594,870.287 613,787,700 120,828,748 322,947,400 715.699.035 936,735,100 76.40 2001 626,906,341 641,419,200 121,849,192 336,548,600 748.755.533 977,967,800 76.56 2002 635,931,458 654,299,600 116,117,602 323,479,600 752.049,060 977,779,200 76.91 2003 642.995,612 679,949,700 117,456,245 323,755,200 760.451.857 1.003,704,900 75.76 2004 660,040,861 687,078,300 110,941,506 307,988,900 770,982,367 995,067 200 77.48 2005 678,425.914 731,267,000 105,481,537 300,735,600 783.907.451 1.032,002.600 75.96 Source: Borough assessment and tax records and State full value determination Last Ten Years Assessed Values $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 KODIAK ISLAND BOROUGH Kodiak, Alaska Property Tax Rates and Contributions to the School District (per $100 of Assessed Value) Last Ten Fiscal Years Contributions to the School District Fiscal Assessed Amount of Millage Year Property Tax Rates Contribution Equivalent 1996 Woodland Trinity Mission 1997 654,134,651 4,839,887 7.40 Acres Islands Lake 8.39 1999 KIB City Street Street Tide 6,678.652 Fiscal General of Lighting Lighting Gate Monashka year Fund Kodiak Area Area Area Bav 1996 6.75 2.00 0.50 - - 1.75 1997 6.75 2.00 0.50 - - 1.50 1998 6.75 2.00 0.50 - - 1.50 1999 9.25 2.00 - - - 1.50 2000 9.25 2.00 - - - 1.50 2001 9.25 2.00 - - - 1.50 2002 9.25 2.00 - - - 1.50 2003 9.25 2.00 - - - 1.50 2004 9.25 2.00 - 0.50 1.00 1.50 2005 10.25 2.00 - 0.50 1.00 1.50 Contributions to the School District Fiscal Assessed Amount of Millage Year Value Contribution Equivalent 1996 $ 640,462,576 $ 4,574,068 7.14 1997 654,134,651 4,839,887 7.40 1998 681,342,892 5,715,361 8.39 1999 686,856,392 6,492,876 9.45 2000 715.699.035 6,678.652 9.33 2001 748,755.533 6,913,926 9.23 2002 752.049,060 7,550,506 10.04 2003 760,451,857 7.767,661 10.21 2004 770,982.367 8,498.082 11.02 2005 783.907,451 8.521.286 10.87 Source: Borouah ordinance and assessment 112 I u t Road Services Areas Womens Airport Service Bay View Womens District 1 Road Bay 1.75 1.00 2.00 1.75 1.00 2.00 0.75 1.00 2.00 0.50 1.00 2.00 0.50 1.00 2.00 1.00 1.00 2.00 125 1.00 2.00 1.00 1.00 2.00 1.00 1.00 2.00 1.00 1.00 2.00 Fire Ar eas Service Womens Airport Area No. 1 Bav Fire Protection 1.50 1.25 - 1.50 1.25 - 1.50 1.25 - 1.50 1.25 - 1.50 1.25 - 1.50 1.25 - 1.50 1.25 - 1.50 1.25 - 1.50 1.25 - 1.50 125 1.25 u KODIAK ISLAND BOROUGH Kodiak, Alaska Ten Largest Property Taxpayers Year ended June 30, 2005 Source: Borough tax records 114 Percentage Percentage of total Net of total assessed Assessed taxes taxes value valuation levied levied Ocean Beauty Seafoods Inc 2.0% $ 15,473,723 127,295 1.373 Western Alaska Fisheries 1.4% 10,964,503 125,073 1.349% Alaska Communications Systems 1.4% 10,850,252 117,704 1.270% International Seafoods of Alaska 1.2% 9,623,410 111,561 1.203% Afognak Native Corporation 1.2% 9,520,016 97,308 1.050% Wal -Mart Real Estate Bus Trust 1.2% 9,387,188 97,194 1.048% Mill Bay Plaza Assoc Ltd 0.9% 7,138,400 87,445 0.943% Horizon Lines of Alaska, LLC 0.9% 7,121,465 85,043 0.917% Brechan Enterprises, Inc. 0.9% 6,774,189 80,326 0.866% Kodiak Fishmeal Company 0.9% 7,069,755 77,170 0.832% Totals 12.0% $ 93,922,901 1,006,119 10.9% Source: Borough tax records 114 KODIAK ISLAND BOROUGH Kodiak. Alaska Ratio of Net General Bonded Debt to Assessed Value and Net General Bonded Debt per Capita is Last Ten Fiscal fears Ratio of net general bonded debt Less Debt Net general Fiscal value per capita Assessed Gross Service bonded year Population 2.7 value bonded debt Fund debt 1996 15.400 (a) S 640.462,576 23 205,000 1.759.644 21.445.356 1997 14.058 la) 654.134,651 21.660,000 549.569 21.110.431 1998 14,181 (a) 681,342,892 20.020,000 432,942 19.587,058 1999 13.848 (a) 686,856.392 18,910,000 340.159 18.569,841 2000 13,989 (a) 715,699,035 17.025.000 272.651 16.752.349 2001 13.913 (a) 748,755,533 17,690.000 344,942 17,345.058 2002 14,167 (a) 752.049,060 16,615.000 448,065 16.166.935 2003 13,874 (a) 760,451,857 15.620.000 17.879 15.602.121 2004 13.811 (a) 770,982,367 14,385,000 33.915 14,351.085 2005 13,466 (b) 783.907,451 32,965.000 141,767 32,823,233 Ratio of net general bonded debt Net general to assessed bonded debt value per capita 3.3 S 1.39; 3._ 1.50_ '_9 1.381 2.7 1.3.31 '_.3 1.198 2.3 1.247 2.1 1,141 2.1 1.1'_5 1.9 1.039 4.2 2.437 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. (b) Information obtained from State of Alaska. Department of Commerce, Community and Economic Development. Community Database. 115 KODIAK ISLAND BOROUGH Kodiak, Alaska Computation of Direct and Overlapping Debt June 30. 2005 Percentage Kodiak Island applicable to this Borough Net debt governmental share of outstanding (a) unit (b) debt Kodiak Island Borough: General obligation bonds $ 32,965,000 100% $ 32.965.000 City of Kodiak: Revenue bonds 820,000 100% Total $ 33,785,000 $ (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. Sources: Borough general ledger and City of Kodiak records 820,000 116 KODIAK ISLAND BOROUGH Kodiak, Alaska Computation of Legal Debt Margin June 30, 2005 Assessed value S 783.907.451 Plus exempt property 32.491.840 Total S 816.399,291 Per Alaska Statute 29.45.090, there is a limit of 30 mills for ad valorem taxes. Per Alaska Statute 29.45.100, the limitation on maximum mill rate does not apply to taxes levied to pay bonds. I Source: Borough assessment records t 117 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 Total Interest year Principal (a) and fees 1996 $ 2,480,833 1,386,681 1997 1,565,833 1,239,996 1998 1,660,833 1,141,366 1999 1,915,833 853.652 2000 1,905,833 858,164 2001 2,015,834 746,994 2002 1,095,833 853,543 2003 1,140,833 803,224 2004 1,255,833 667,744 2005 1,780,417 983,195 (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 Total Ratio of general debt service Total debt expenditures to general service and transfers expenditures 3,867,514 9,278,184 41.7 2,805,829 9,391,162 29.9 2,802,199 11,393,083 24.6 2,769,485 10,957,892 25.3 2,763,997 9.827,488 28.1 2,762,828 10,735,365 25.7 1,949,376 10,726,858 18.2 1,944,057 13,071,957 14.9 1,923,577 11,014,093 17.5 2,763,612 12,027,717 23.0 (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 KODIAK ISLAND BOROUGH Kodiak. Alaska Demographic Statistics Last Ten Fiscal Years Fiscal School year Population (a) enrollment (b) 1996 15,400 2.872 1997 14,058 2,862 1998 14,181 2.851 1999 13,848 2,798 2000 13,989 2,810 2001 13,913 2,774 2002 14,167 2.821 2003 13,874 2.751 2004 13,811 2,704 2005 13,466 2,675 Sources: (a) State of Alaska. DCRA certified population (b) Kodiak Island Borough School District (c) Department of Labor, Anchorage Percentage unemployment rate (c) 14.5 9.1 5.0 5.1 13.4 10.9 18.2 10.3 10.6 9.5 119 KODIAK ISLAND BOR01 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 Construction Deposits ommercial Residential Fiscal o. o No. of banks year permits Value permits Value 1996 41 5 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 2003 47 2.915.740 166 11,707,269 2004 44 2.859,775 179 14.798.679 2005 47 2,097.983 158 10.590,784 * Assessed value. Source: Borough assessing records. City of Kodiak building department and local bankers Property Value* Deposits in local banks Commercial Residential Nontaimble 108,116331 155,755.000 382.872.500 2.404,5 11.974 108.926,259 157.911.064 391.545.900 2.404.8i2.414 107.973.700 161,787.265 411.955.734 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 2.575.199399 119,637,923 193,882,996 433.023.355 2.475.199.399 117 241.908 199.689,615 443.305.997 1,994 297.555 129,546.701 206.386.964 463,419.197 1 996.235.045 128.062.000 207.611.182 480.581.831 1.736.191.891 135.302.541 210,328.700 482 244.145 1,666.526.546 * Assessed value. Source: Borough assessing records. City of Kodiak building department and local bankers 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 (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 the Service District. Source: Borough records 121 1996 1997 1998 Land area - square miles 7.130 7,130 7,130 Miles of improved street 21.60 24.70 24.70 Building permits: Permits issued 201 148 188 Value of buildings (thousands) 11,728 7,822 24,780 Fire protection: Number of fire stations 2 2 2 Number of employees 1 1 1 Police protection - none Recreation: Parks - number of acres 224 224 224 Facilities: Number of playgrounds I6 16 16 Number of swimming pools 1 I I Education: Number of schools: City of Kodiak Elementary 4 4 4 City of Kodiak Junior High 1 1 1 City of Kodiak High School 1 1 1 Village Schools (a) 9 9 9 Number of personnel: (b) Administration 6.0 6.0 5.2 Principals 12.0 11.7 11.4 Teachers 183.8 188.5 179.6 Technical 3.0 3.5 9.0 Clerical and Aides 61.7 63.7 72.7 Maintenance /Warehouse 12.0 9.0 10.0 Custodial 22.5 26.3 27.6 Food Service 3.7 4.2 6.3 Total number of personnel 304.7 312.9 321.8 Number of students 2,793 2,809.0 2,897 Number of municipal employees 63 63 50 Elections: Number of registered voters 8,217 9,350 9,967 Number voting in last election 1.471 2,120 2,076 Percent of registered voters 17.9% 22.7% 20,8% (a) The majority of Village Schools are grades K -12. (b) Based on full -time equivalents. (c) As of July 1, 1996. the City of Kodiak assumed ownership, maintenance, and operation of the existing water and sewer utilities in the Service District. Source: Borough records 121 1999 2000 2001 2002 2003 2001 2005 7,130 7.130 7.130 7,130 7.130 7.130 7,130 25.02 25.00 25.58 25.66 25.66 25.66 25.66 192 210 231 220 213 223 205 15,007 11,806 12,881 11,934 14,623 17.658 12,689 2 1 2 1 2 1 2 1 2 1 1 1 224 224 2224 224 224 224 224 16 16 16 16 16 16 15 1 1 1 1 1 1 1 4 1 4 1 4 1 4 1 4 1 4 1 4 1 1 9 1 9 1 9 1 8 1 7 1 7 1 7 5.2 4.2 7.5 7.2 6.8 6.8 6.8 11.4 10.3 9.5 11.3 10.3 8.0 9.0 178.1 188.6 200.0 202.6 202.1 190.0 197.8 9.0 11.1 3.0 4.0 3.5 4.0 4.0 75.2 78.9 79.5 121.0 115.4 79.0 106.7 8.0 10.8 15.0 18.0 15.2 15.9 •15.9 30.6 29.0 39.0 32.0 29.9 30.1 30.0 6.7 10.7 8.0 8.5 8.2 8.2 8.2 324.2 343.6 361.5 404.6 391.4 342.0 378.4 2,815 2,798 2,750 2,821 2,751 2,704 2,675 46 36 37 37 39 39 41 10,389 9,935 10,311 10,085 10,099 10,099 9,282 1.972 2.525 2.521 2,914 1,473 1.473 2,040 19.0% 25.4% 24.4(/( 28.9c7c 14.6% 14.610 22.0% 122