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CAFR FY1989Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1989 TABLE OF CONTENTS INTRODUCTORY SECTION BOROUGH OFFICIALS BOARDS AND COMMITTEES MAP OF KODIAK ISLAND BOROUGH GFOA CERTIFICATE OF ACHIEVEMENT ORGANIZATIONAL CHART LETTER OF TRANSMITTAL FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT COMBINED FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund, Special Revenue Funds and Debt Service Funds Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Type - Enterprise Funds Combined Statement of Changes in Financial Position - Proprietary Fund Type - Enterprise Funds Notes to Combined Financial Statements COMBINING. INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS GENERAL FUND: Balance Sheet Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual Schedule of Expenditures and Transfers - Budget and Actual EXHIBIT PAGE v vi viii ix x xi 1 1 2 2 6 3 8 4 12 5 13 14 A -1 A -2 A -3 40 41 44 i Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1989 TABLE OF CONTENTS (Continued) ii EXHIBIT PAGE SPECIAL REVENUE FUNDS: Combining Balance Sheet B -1 52 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) B -2 54 Statement and Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Fire and Road Service Districts: Fire: Area 1 B -3 57 Women's Bay B -4 58 Road: Monashka Bay B -5 59 District 1 B -6 60 Women's Bay B -7 61 Bay View Service Districts Road B -8 62 Federal and State Grant Programs: Mental Health Center B -9 63 Mental Health Center - Schedule of Expenditures B -10 64 Energy B -11 65 Day Care B -12 66 Education B -13 66 Land Sales B -15 56 Building and Grounds B -14 69 Oil Spill Clean Up B -16 70 DEBT SERVICE FUNDS: Combining Balance Sheet C -1 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balance C -2 73 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: School Bonds C -3 74 CAPITAL PROJECTS FUNDS: Combining Balance Sheet D -1 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D -2 78 Schedule of Capital Projects D -3 80 ii Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1989 TABLE OF CONTENTS (Continued) iii EXHIBIT PAGE PROPRIETARY FUND TYPE - ENTERPRISE FUNDS: Combining Balance Sheet E -1 84 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings E -2 86 Combining Statement of Changes in Financial Position E -3 87 Sanitary Landfill: Balance Sheet E -4 88 Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual E -5 89 Statement of Changes in Financial Position E -6 90 Water: Balance Sheet E -7 92 Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual E -8 94 Statement of Changes in Financial Position E -9 95 Sewer: Balance Sheet E -10 96 Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual E -11 98 Statement of Changes in Financial Position E -12 99 Hospital: Balance Sheet E -13 100 Statement of Revenues, Expenses and Changes in Fund Equity E -14 102 Statement of Changes in Financial Position E -15 103 TRUST AND AGENCY FUNDS: Combining Statement of Changes in Assets, Liabilities and Fund Balances F -1 106 GENERAL FIXED ASSETS ACCOUNT GROUP: Statement of General Fixed Assets by Source G -1 108 Statement of General Fixed Assets by Function and Activity G -2 109 Statement of Changes in General Fixed Assets by Function and Activity G -3 110 GENERAL LONG -TERM ACCOUNT GROUP: Statement of General Long -Term Debt H -1 112 iii Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1989 TABLE OF CONTENTS (Continued) STATISTICAL SECTION TABLE EXHIBIT PAGE SUPPLEMENTAL FINANCIAL DATA: General Governmental Expenditures and Other Uses Summary of debt service requirements to maturity I -1 114 General obligation school improvement bonds, series 1984b 123 Property Tax Levies and Collections - Retirement Schedule I -2 115 General obligation school improvement bonds, series 1986a Retirement Schedule 4 I -3 116 General obligation school refunding bonds, series 1989 Last Ten Fiscal Years 5 Retirement Schedule Ten Largest Taxpayers I -4 117 General obligation school extension and improvement bonds, 128 Computation of Direct and Overlapping Debt series 1980a Retirement Schedule I -5 118 General obligation refunding bonds, series 1974a Retirement Schedule I -6 119 STATISTICAL SECTION TABLE PAGE STATISTICAL TABLES: General Governmental Expenditures and Other Uses by Function - Last Ten Fiscal Years 1 122 General Revenues by Source - Last Ten Fiscal Years 2 123 Property Tax Levies and Collections - Last Ten Fiscal Years 3 124 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 4 125 Property Tax Rates - All Overlapping Governments - Last Ten Fiscal Years 5 126 Ten Largest Taxpayers 6 127 Ratio of Net General Bonded Debt - Last Ten Fiscal Years 7 128 Computation of Direct and Overlapping Debt 8 129 Computation of Legal Debt Margin 9 130 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures - Last Ten Fiscal Years 10 131 Demographic Statistics - Last Ten Fiscal Years 11 132 Salaries and Surety Bonds of Principal Officials 12 133 Summary of Debt Service Requirements to Maturity 13 135 General Obligation Bonds Outstanding: School Refunding Bonds, Series 1974B 14 136 iv BOROUGH OFFICIALS KODIAK ISLAND BOROUGH YEAR ENDED JUNE 30, 1989 BOROUGH ASSEMBLY Alan Austerman '91 Ann Barker '89, Deputy Presiding Officer Tom Merriman '90 John Parker '91 Wayne Stevens '89 Jack L. McFarland '90 (Presiding Officer) Lorne "Lonnie" White '90 BOROUGH MAYOR Jerome M. Selby '89 Charles E. "Bud" Cassidy . . . . . . . . . . . . Resource Management Officer David C. Crowe . . . . . . . . . . . . . . . . . . . . . . . Borough Engineer Pamela Delys - Baglien . . . . . . . . . . . . . . . . . Mental Health Director Linda L. Feed . . . . . . . . . . . . . . . . . . . . . . . Planning Director Patrick S. Carlson . . . . . . . . . . . . . . . . . . . . Assessor /Appraiser Jamin, Ebell, Bolger, Gentry . . . . . . . (Contracted Firm) Borough Attorney Robert MacFarlane . . . . . . . . . . . . . . . . . . . Facilities Coordinator Perry L. Page . . . . . . . . . . . . . . . . . . . . . Data Processing Manager Jerome M. Selby . . . . . . . . . . . . . . . . . . . . . . Personnel Officer Earl A. Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . Fire Chief Gaye Vaughan . . . . . . . . . . . . . . . . . . . . . . . . . Borough Clerk Don Wee . . . . . . . . . . . . . . . . . . . . . . . . Hospital Administrator Bryce S. Weeks . . . . . . . . . . . . . . . . . . Finance Director /Treasurer Mary Ann Weidman . . . . . . . . . . . . . . . . . . . . . . Purchasing Agent John Witteveen . . . . . . . . . . . . . . . Superintendent, School District v KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1989 School Board (5 Suzanne Hancock * Dave Herrnsteen Alice Knowles Cheryl McNeil Bill Oliver Hospital Advisory Board (7 Ben Ardinger William C. Hogan Dr. Bob Johnson Gretchen Saupe Betty Springhill * Wilton White Lorne White Mental Health Center Advisory Board (9) Josefina Barber Frank Caprio, Dr. Frances Cater * Maureen Eberhardt Vickie Hester Mark Houglum Karen Perkins Linda Mullan Wayne Stevens Plannine and Zonine Commission _(7 Bruce Barrett Wayne Coleman Jon Hartt Robin Heinrichs * Tom Hendel Jody Hodgins Mary Lou Knudsen Citizen Board of E q ualiz ation (5 Jim Carmichael Vickie Case Andi Cristaldi Peggy Nekeferoff * Kyle Taylor Jim Ashford, Alternate Parks and Recreation Committee (12 Forrest Blau Maureen Butler Ian Fulp Mike Goodwin Alice Knowles Mary Lou Knudsen Tom Merriman David Odell Elizabeth Odell Tom Watson Gloria Wiechmann Vacant (1) Buildinz Code Board of Appeals (Architectural Review Board) (9 * Bill Beaty Ron Chase Cliff Ford Robin Heinrichs John Parker Brian Parsons James Wheeler Susan Workman Vacant (1) Personnel Advisorv_ (5 Pat Borger Mary McFarland Mary Monroe * Walter Sapp Vacant (1) r vi 11 Data Processing S teering Committee Jack McFarland Bill Oliver Perry Page * Jerome Selby Bryce Weeks John Witteveen Jocelyn Zwiefelhofer Fire Protection Area #1 Advisory Board (5) Scott Arndt Sid Cozart Charles Lorenson * John Shank Bill Swearingin Bav View Road Service D istrict Advisory Board (5) Dawn Black Randy Chase * Ron Chase Dave Kubiak Reed Oswalt ' Monashka Bay Road Service District Advisory Board (5) Roxy Bringgold Cathy Cordry Ilva Fox Dan Ogg * Bill Swearingin Emergency Services Council (4) Joseph Blackett, Captain USCG ' Bob Brodie Gordon Gould * Jerome Selby I I * Indicates chair �1 vii Consolida Committee (9 Chris Blackburn Sven Haakanson Joyce Healey Tom Hendel Beverly Horn Jack McFarland * Gary Stevens Wilton White Helen Wise Service Di strict No. 1 Advisory Board (7) Scott Arndt Jim Berg Okey Chandler * Jim Fisk Tony Perez Earl Smith, Jr. Vacant (1) Women's Bay Se rvice District Advisory Board (7) * Wayne Berry John Burt Ed Gondek Carl Hayes Charles Madsen Richard Perkins Robert Tarrant Kodiak Island Transportation Stud Steering Committee (KITS) (5 Alan Austerman Bob Brodie Al Cratty * Gordon Gould Jerome Selby ARCTIC OCEAN ,NARROW PRUDHO£ 84Y bp ow 0 a KODIAK a` ISLAND Q BOROUGH C N• N• w Iv` KOTZEBUE �-- ARCTIC NOME 0 NORTON SOUND FAIRBANKS ALASKA ANC ORAGE VALDEZ BETHEi A KENA j✓'1 E SEWARR DILLINGHAM GULF OF ALASKA BRISTOL &I Y KOQIAK ISLAND G •• P NORTH PACIFIC OCEAN CANADA -- -- ■•■ r rI r r rl r rr rIi r r r it r 1 Certificate of � Achievement for Excellence � in Financial � Reporting ' Presented to Kodiak Island Borough, Alaska ' For its Comprehensive Annual Financial Report ' for the Fiscal Year Ended June 30, 1988 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement ' systems whose comprehensive annual financial reports (CAFR's) achieve the highest standards in government accounting ' and financial reporting. ix LUCTORA E Borough Assemb Advisory Board (Appointed by Ass ) RDspital Administrator 1 taff pUaL Mann" & Citizens Advisory Zoning CommissiO Boards /Commission (Appointed by (Appointed by Assem6l) Assembly) Personnel $oard School staff Architectural Review Borough ParLs and Recreation Attorney Board Of Equalization Mental Health Center Borough Economic Development Clem. OCS Advisory Council Building Code Board of Appeals XITS Committee nayor (Elected) Service District Advisory Boards (Elected) SchooC $oard (F.Eected) FSuperi;ntender Monashfia. Bay Road Service District of Schools Womens Bay Road Service /Fire School staff District Service District No.! -Road, Water, Sewer Fire District No.I - $ayview General Community Facilities Date Mental Buildin Develo ment Coordinator Engineering Finance Services Assessing Adminis- p 3lea.tth inspector trati on Department Department Department Department Department Department Center September 21, 1989 ' To the Honorable Borough Mayor and Borough Assembly Kodiak Island Borough Kodiak, Alaska ' The comprehensive annual financial report (CAFR) of the Kodiak Island Borough (Borough), Kodiak, Alaska for the fiscal year ended June 30, 1989 is submitted herewith. ' I. Introduction A. Management Responsibility for Financial Information The report was prepared by the Borough Finance Department. Responsibility for the accuracy, completeness and fairness of presentation, including all disclosures, rests with the Borough. We believe the data, as presented, is accurate in all material respects, that it is presented in a manner designed to fairly set forth the financial position and results of operations of the Borough as measured by the financial activity of its various funds, and that all disclosures necessary to enable the reader to gain maximum understanding of the Borough's financial affairs have been included. B. Explanation of CAFR Sections This comprehensive annual financial report is presented in three main sections: introductory, financial, and statistical. The introductory section includes background on the Borough, the Fund accounting concept used by the Borough, and some financial presentations. The financial section includes the independent auditors report, combined statements, notes to financial statements, and more - detailed combining and individual statements and schedules. The statistical section includes selected financial and general information presented on a ten year comparative basis. I C. Definition of the Reporting Entity The Kodiak Island Borough lies at the western border of the Gulf of Alaska, about 40 miles south of the Kenai Peninsula. About two - thirds of the Borough lies in the Kodiak archipelago. One third of the Borough is separated from the Alaska Peninsula by the Shelikof Strait which is only 20 miles wide in places. The Borough encompasses 7,130 square miles, or about 50% larger than the State of Connecticut. � I �1 xi The Borough was incorporated September 30, 1963 as a Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. The Borough is governed by a strong ' Mayor /Assembly form of government. The Borough Assembly is composed of seven members who are elected at large. The funds related to the Borough included in our CAFR are considered to be within the oversight responsibility of the Borough Assembly. The criteria used in determining the reporting entity are consistent with the Governmental Accounting Standard Board (GASB) Statement 3, "Definition of a Reporting Entity ". Based on these criteria, the various funds and account groups (being all the funds and account groups of the Borough) shown in the Table of Contents are included in this report. II. Economic Condition and Outlook A. Summary of local economy On a short term basis the economic loss to the community because of the many salmon fishing closures due to the oil spill apparently will be offset to a great extent by oil spill clean up activity. No reasonable projection of the long term effects on the economy can be accurately made at this time. B. Data regarding major industries affecting the local economy This has been an exasperating year for the Borough as it has been for many other coastal communities in the State of Alaska. On March 24, 1989 the oil tanker Exxon Valdez went aground at Bligh Reef in Price William Sound some 25 miles from the City of Valdez, Alaska. The Tanker spilled some 10.1 million gallons of north slope crude into the ocean. After several months, much of this oil spill has contaminated the shoreline of the Borough raising havoc with the normal fishing and lifestyle. This event has caused the tragic loss of a great number of our wildlife. Neither bird, beast nor fish have been spared. The true loss will not be known for a number of years. C. Future economic outlook The Assembly of the Kodiak Island Borough has again adopted a balanced budget for fiscal year 1990. This has been our policy for several years. In recent years, we have adopted and executed a budget that is balanced by drawing down on the fund balance, in particular, that of the General Fund. In this manner, the Borough continues to have the resources available to do the tasks assigned without an unusually high fund balance at year end. However, this process of draw down has continued unabated for the past five years (see page xvi). The FY -90 budget contains another draw down of $271,660. There is a strong possibility that this amount may not be available for draw and some adjustments will be necessitated at the time of the mid -year review. Starting in 1981 and continuing our efforts have been to collect those taxes and other receivables due to the Borough promptly, thus negating the need to assess and collect additional monies from those who pay promptly. At fiscal year end, uncollected taxes, of all prior years, were only some $20,000 as contrasted to over a million dollars in 1981. , xii F No plans have been formalized to ask the electorate to approve any future bond issue. Some plans for possible bonding are in their infancy. The State has granted the Borough in excess of $2 million for design and construction of a new hospital. Revenue ' bonds may be necessary to meet the additional funding requirements for this project. Ideally, the necessary funds will come through another capital grant from the State or a combination of grant and revenue bond proceeds. The economy of Kodiak remains ' very healthy. III. Major Initiatives A. Current year projects The current year capital improvements projects are as delineated in Exhibit 24 of this report with some relatively small amounts of new monies appropriated for fiscal year 1990. ' The Mayor and Assembly are currently working on a project that will define the goals of the Kodiak Island Borough for the future. ' 1. Goals A major goal of the Borough has been to provide adequate facilities for the education and physical training of our youth. 2. Results To this end the Kodiak Island Borough has constructed some forty million dollars of new schools, playgrounds, swimming pool and a state of the art auditorium in recent years. B. Future projects i Two potential projects of considerable magnitude for the community are a new hospital ' and a cold storage fish processing plant. The hospital has been discussed at various public meetings for several years. To date ' the Borough has received three state grants for this project for a total of $2,050,000. The land has been purchased and preliminary architect & engineering work has been done. The final plans and possible methods of funding are currently "on hold ". I ' Since fishing is the predominant vocation for this community, the cold storage fish processing facility is envisioned as a means of getting the catch to the major markets with the least possible delay. No serious dialogue has taken place on this subject ' during the past year. C. Department or activity service efforts and accomplishments ' The Borough provides a variety of services including education, health, garbage collection and disposal, planning and zoning, public improvements, and general administration. The Borough provides for education through the Kodiak Island Borough ' School District and has contracted with Lutheran Homes and Hospital Society to operate the Borough Hospital. xiii The Borough is responsible for operating the sanitary landfill and provides water and sewer services outside the Kodiak city limits. The Borough has oversight responsibility for four road service districts and two fire protection districts. IV. Financial Information A. Discussion of controls Management is extremely aware of the importance of good internal controls. Although present controls are considered to be highly satisfactory and adequate, they continue to be scrutinized periodically for enhancements. 1. Internal control structure The accounting system of the Borough is dependent upon a strong system of internal control. The Finance Director of the Borough also acts as the internal auditor of the Borough. The Borough is concerned with all aspects of internal control, reliable and accurate financial information and the safeguarding of Borough assets. As much as possible, in a small office, duties are segregated and no one person has complete control over one area. 2. Budgetary controls The Borough uses the modified accrual basis for governmental funds and the accrual basis for enterprise funds. Under the modified accrual basis of accounting, revenues are recognized when measurable and available and expenditures are recognized when incurred. Budgetary control is maintained by an annual appropriation system supplemented by a supplemental appropriation approximately half way through the fiscal year. Budgetary control is also maintained through the use of an encumbrance system. As purchase orders, contracts and other obligations are issued, corresponding amounts of appropriations are reserved by the use of encumbrances so that appropriations will not be overexpended. All new monies are appropriated by a public hearing and the adoption of an appropriation ordinance. Appropriation transfers are made between funds and /or departments only after the adoption of a resolution by the Assembly. Appropriation transfers between line items within a fund are effectuated by staff. B. General government functions Only the General Fund of the Borough is considered in the following explanation of general governmental functions. 1. Summary schedule of revenues The amount of revenues from various sources and the increase or decrease over the last year are shown in the following tabulation: xiv ' 1 Revenue Source and Other Financing Sources ' Property taxes Licenses and permits ' Intergovernmental revenue Charges for services Miscellaneous Operating transfers Increase (Decrease) Amount Percent Over 1988 (Thousands) of Total (Thousands) $2,515.4 38.9 $ 24.4 39.2 0.6 (14.2) 3,449.9 53.2 1,158.3 0.1 9.2 51.1 411.0 6.4 (17.9) 56.4 0.9 (58.2 6 472.0 100. 0 J.L 2. Summary schedule of expenditures Changes in levels of expenditures for major General Fund functions of the Borough t over the preceding year are shown in the following tabulation: Function General government Public safety Public works Health and sanitation Education Culture and recreation Conservation and development Operating transfers Increase (Decrease) Amount Percent Over 1988 (Thousands of Total (Thousands $1,394.1 24.8% $ (22.3) 88.3 1.6 (75.4) 173.9 3.1 82.5 517.1 9.2 51.1 29.0 0.5 (148.4) 161.4 2.9 161.4 281.3 5.0 (11.9) 2.996.4 52.9 7.8 5 641.5 10= 44.8 3. Discussion of significant changes in revenues and expenditures Revenues for general government totaled $6,415,655 and operating transfers were $56,410. This was an increase of $1,179,102 and a decrease of $58,225, respectively over 1988. General property taxes produced 38.9% of general revenues in 1989 compared with 47.6% in 1988. The most significant change in revenue of the General Fund was in intergovernmental revenue due to raw fish tax. The State of Alaska approved a supplemental appropriation for fish tax payable to the Borough and disbursed a check for $340,474 in August 1988. In August 1989, the full amount payable of $1,704,395 was received and recorded as fiscal year 1989 revenue. Such an amount of raw fish tax has never been recognized in a prior period and of course will not be realized in the immediate future due to the oil spill and resulting fishing closures. These events reflect over $1,000,000 in excess of prior year and projected subsequent year revenues from this revenue source. � I I xv 4. Effect of revenue limitations Capital improvement rants from the State of Alaska have played a major role in the �! P P g P Y J local economy in past years. The receipt of these grant funds peaked in fiscal year 1983 and have shown a steady decline since. 5. Status of fund balances The fund balance of the General Fund continues to undergo a critical periodic review. Planned drawdowns have been budgeted and executed by tax reduction and transfers to other funds to keep the fund balance adequate and reasonable. As a result of these actions, the current year property tax millage rate remains unchanged from the previous year. The following table reflects fund balance of the General Fund at the close of the fiscal years ended June 30: 1982 $5,478,183 1983 2,684,707 1984 2,742,239 1985 2,661,914 1986 2,532,100 1987 2,475,747 1988 2,248,866 1989 3,098,371 C. Proprietary operations The Kodiak Island Hospital is contracted for management with the Lutheran Homes and Hospital Society of America. The Borough is ultimately liable for any financial loss. The utility funds, which include water, sewer and sanitary services are frequently supported by contributions from the general or other funds. The Borough does not have a water plant or sewer treatment facility. Water is purchased from the City of Kodiak and sold to Borough users. These customers are in a service district contiguous to the City. 1. Discussion of financial condition and results of operations All utility funds have shown a significant annual operating loss for the past two fiscal periods, as follows: Water Sewer Landfill Total 1988 $ 49,711 $177,372 $287,447 $514,530 1989 81,440 260,870 349,308 691,618 2. Relationship with general government operations Because of the significant operating losses it has been necessary for operating transfers to be made to subsidize the operations of these Enterprise Funds. A rate increase is essential and must be addressed. f: xvi , ''" D. Fiduciary operations All fiduciary activity is handled with the same care and due diligence that we exercise with any of our funds. All amounts due are withheld and /or collected, accounted for and remitted promptly. 1. Level of pension plan funding ' Periodically the State of Alaska informs each participating entity of Public Employees Retirement System (PERS) as to the employee and employer contribution ' rates. These amounts are budgeted, withheld and remitted accordingly. 2. Status of pension plan obligation ' Unfunded pension liabilities represent one of the most important financial problems which will face most cities and counties of America today. Your Borough staff, being acutely aware of this, has initiated legislation that has been adopted by the Assembly to preclude this from being a problem that we would face in the future. All unfunded past service costs of both the Borough and school district pension funds have been fully liquidated. Periodically the actuarial assumptions are revised by the State of Alaska PERS. When such occurrence creates a deficiency, that amount is paid within the period of notification or upon adoption of a subsequent budget. 3. Other fiduciary activities The Borough collects, deposits, invests and accounts for all property tax receipts. For the entities for which the Borough does the accounting, the revenue is recognized in those particular funds. Receipts for the City of Kodiak are normally remitted in full in October or November of each year. All other fiduciary collection activity (i.e., Federal withholding, FICA, Insurance, Pension funds, etc.) is accounted for and promptly remitted to the agency involved. E. Debt administration ' 1. Summary of outstanding debt t Summary of debt principal outstanding at fiscal year end was: General obligation, school 1984 $ 550,000 General obligation, school 1986 7,000,000 ' General obligation refunding 1989 10,000,000 Environmental Protection Agency loan 322.910 $17.872.083 2. Review of current year's debt issuances ' On June 20, 1989 a ten million General Obligation school refunding issue was marketed. This was the only bonding in the current fiscal period. xvii 3. Information on advance refundings The advance refunding of the GO 1980 school bond issue this period has accomplished two major items. A like amount of debt is on the street at a lower interest rate and the State reimbursement has been accelerated by two years. The net effect of this issue is a considerable savings to both the Kodiak Island Borough and the State of Alaska. 4. Discussion of debt limitation The Statutes of the State of Alaska and the Code of the Kodiak Island Borough do not establish a legal debt margin. Our debt capacity is determined by a vote of the electorate and ultimately by the marketplace when debt is attempted to be placed. 5. Debt ratings The Borough has no revenue bonds authorized or issued. The Borough's general obligation bonds are rated as follows: Moody's Standard Investors Service and Poors General obligation refunding 1980 Aaa AAA General obligation variable rate 1984 MIG -1 General obligation variable rate 1986 AA + /A -1+ General obligation refunding 1989 Aaa 6. Per capita debt levels Per capita debt for the past ten years is reflected in Table 7 on page 80. You may note that a per capita high of $1,772 was reached in 1984 during the peak of our new schools construction. Much of our debt was variable rate short term "put" bonds and has subsequently been extinguished. F. Cash management Cash management is a strong point of your current treasurer. Monies, naturally, cannot be invested until received and deposited. As simple as this is, few in government stress this point. It was only a few years ago that several years of unpaid taxes was not the exception. The required forms were not prepared and submitted promptly for drawdowns on State grants and other receivables were handled in a like manner. All accounts of the Borough are now relatively current and proper monitoring procedures are in place for timely receipt and deposit of any amounts due. 1. Investment policies The Borough treasurer operates as the central treasurer for all Borough, School District and Mental Health Center monies. A cash pool concept is maintained whereas all funds are self - balancing unique entities and each fund has its own cash account which on occasion may show a "book overdraft" while others have an excess of cash. In this manner, the Borough is able to fully invest all idle funds without creating a "bank overdraft." I � xviii tE All funds are deposited daily and intact and all idle funds are invested on the ' following day. We do recognize that there is frequently some exposure to uninsured and uncollateralized deposits. We have made great strides in minimizing this exposure through increased collateral and selection of banks and brokers with ' additional insurance. An account is now used (established February 1989) with the local servicing bank to daily sweep the total balances to another account. That account is collateralized by U.S. Treasuries at 102. Collateral is held by a third party bank. 2. Safeguarding activities ' The Borough investment policy is far more restrictive than many governments. The parameters in which we operate are as defined in Title 3, Chapter 4, of the Borough Code. Basically, it states that we invest only in high grade securities that are ' fully collateralized and /or insured. Further, the collateral is to be held by a third party bank. The Kodiak Island Borough has large sums of idle cash on a daily basis. This is ' not to say that the Borough assesses and collects more tax than it needs or floats bond issues when not necessary or things of that nature. It is to say that due to the size and complexity of government, it is necessary to have adequate funding in place to accomplish the assigned tasks. 3. Yield information ' During the past year the investments of the Borough have fluctuated between $13 and $20 million. Interest rates for our fiscal year started off very modestly at 6.18 to 8.98 in early July 1988. At year -end of June 30, investments were earning from ' 6.758 to 10.358 for an average yield of 8.368. We closed out the year with investment earnings for all funds in the amount of $1,749,896. G. Risk management Risk management is a term used to describe all management activities directed toward the control of risks. The methods used to establish this control are: ■ - Identification of risks - Measurement of risks ' - Elimination of or control of risks - Self- assumption of certain risks through formal funding Transferring risks through the purchase of insurance A year by year comparison is somewhat meaningless, without study, as some years' records include refunds of unearned premiums of years past while others do not, etc. I believe it suffices to say that we are talking big dollars. The Assembly ' and staff are currently working on identification of risks as an ongoing item so that appropriate management action may be taken to minimize cost where possible while providing adequate coverage. . 1. Types and level of risk assumed Insurance premium costs are no longer a minor expenditure item for the Borough. ' In recent years, insurance premium costs have risen considerably and are now in excess of a million dollars annually. xix 2. Risk control policies The policy of the Borough is to get bids on the selection of the insurance agent every three years. We work closely with this agent to get the best coverage for the dollar. ■ Periodically we also have an insurance analysis performed by a major risk management independent consultant (one who sells only service, not insurance) to review our coverage and highlight potential exposure and /or duplicate of questionable coverage. V. Other Information A. Independent audit The Borough Code requires an annual audit to be made of the books of account, financial records, and transactions of all administrative departments of the Borough. This requirement has been complied with and the auditor's opinion has been included in this report. 1. Scope of the audit The scope of our annual audit has been strictly financial and compliance for many years. No performance auditing has been contracted for or accomplished. 2. Additional audit requirements The State of Alaska requires single audits per statute and defines these requirements in 2 AAC 45.010: The Borough also complies with the "Federal Single Audit Act of 1984 ". B. Awards 1. Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Kodiak Island Borough for its comprehensive annual financial report for the fiscal year ended June 30, 1988. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports 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 our current report continues to conform to the Certificate of Achievement Program requirements, and we are submitting it to the Government Finance Officers Association. 2. Government Finance Officers Association Distinguished Budget Presentation Award The Borough Mayor and Finance personnel have worked hard in recent years to streamline our budget. Each annual document encompasses the good features of the prior years while adding the best of current thinking. ' We plan to submit the current or next year's budget to GFOA for their critical review in our efforts to obtain this award. ' 3. Other awards Citizens of the Kodiak Island Borough are pleased to see that our Mayor, Jerome M. Selby, has been recognized nationally. He appears in the current issue of Who's ' Who in the West C. Acknowledgements ' I wish to express my appreciation to all the members of the finance department for their efficient and dedicated service during the past year. I wish to thank your office and the members of the Borough Assembly for their interest in and support of ' the planning and conducting of the financial operations of the Borough in a responsible and progressive manner. Respectfully submitted, BRYCE S. WEEKS DIRECTOR OF FINANCE � I � I � I � I 'I xxi 101 West Benson Boulevard Anchorage, AK 99503 Price Waterhouse INDEPENDENT AUDITOR'S REPORT September 15, 1989 To the Mayor and Members of the Assembly Kodiak Island Borough Telephone 907 563 4444 04 We have audited the accompanying general purpose financial statements of Kodiak Island Borough as of June 30, 1989, and for the year then ended as listed in the table of contents. These general purpose financial statements are the responsibility of the Borough's Management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of other auditors provides a reasonable basis for our opinion. We did not audit the financial statements of Kodiak Island Hospital and Care Center, which statements reflects 33% of the total assets and 85% of the total operating revenue of the combined Enterprise Funds. Those statements were audited by other auditors whose report thereon has been ' furnished to us, and our opinion expressed herein, insofar as it relates to the amounts included for Kodiak Island Hospital and Care Center, is based solely on the report of the other auditors. In our opinion, based upon our audit and the report of other auditors, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Kodiak Island Borough as of June 30, 1989, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the combined financial statements of the Kodiak Island Borough. The information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements, and in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. 100 Yea nit at s KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1989 ASSETS Current assets: Equity in central treasury Temporary investments Other cash and cash equivalents Investment in deferred compensation plan Receivables: State of Alaska Property taxes, net of allowance for uncollec- tibles of $11,773 in 1989 and $9,133 in 1988 Land sales contracts, due within one year Other, net of allowance for doubtful receivables of $516,643 in 1989 and $312,976 in 1988 Due from other funds Inventories Prepaids Restricted assets: Equity in central treasury Temporary investments Interest receivable Receivable from State of Alaska Land sales contracts receivable, due after one year Borough designated investment Long -term receivable from Lutheran Hospitals and Homes Society of America Amount available to service long -term debt in Debt Service Funds Amount to be provided to 1 d b Governmental Fund Types Special Debt Capital General Revenue Service Projects $ - $ 274,677 $ 267,757 $ 270,326 3,512,286 1,776,382 4,530,522 2,929,204 1,235 33,096 648,922 4,641 1,749,479 1,261,055 448,618 211,606 9,363 - - - - 343,529 - 23,510 569,891 50,217 20,930 - 2,418,178 - 234,187 271,776 - - 1,471,044 - - sery ice ong- term e t - - - - Fixed assets in service - - - - Accumulated depreciation - - - - Construction work in progress - - - - Other 239 - $5.2 S8.4� S5.9� $3.6= See accompanying notes to the general purpose financial statements 2 EXHIBIT 1 Proprietary Fiduciary Totals 16,580 - - Fund Type Fund Type Account Groups (Memorandum Only) - 462,659 Agency General General Long - - 100,699 Enterprise Fund Type Fixed Assets Term Debt 1989 1988 $ 8,693 $ - $ - $ - $ 821,453 $ 1,799,041 250,000 - - - 12,998,394 18,069,668 2,524,150 94,424 - - 3,306,468 1,808,858 - 519,926 - - 519,926 383,248 3,670,758 1,932,383 9,363 16,477 343,529 257,200 1,787,352 720 - - 2,452,620 2,438,688 16,580 - - - 2,668,945 5,091,772 190,883 - - - 462,659 403,867 100,699 - - - 100,699 55,773 - _ _ _ - 180,127 476,382 - - - 476,382 - 9,316 - - - 9,316 - - _ _ _ - 367,813 - - - - 1,471,044 1,978,712 638,658 - - - 638,658 810,397 1,846,000 - - - 5,945,729 5,945,729 7,245,067 - - - 11,513,662 11,513,662 12,642,105 23,994,884 - 70,203,161 - 94,198,045 85,548,006 (3,685,933) - - - (3,685,933) (3,061,592) 109,607 - 6,911,287 - 7,020,894 9,851,054 239 526,421,271 LjL5 070 $77.114,448 $17,459,391 $144,942.850 $149,664,664 Continued 3 KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1989 LIABILITIES AND FUND EQUITIES Liabilities: Bank overdraft Accounts payable Retainage payable Salaries payable Payroll taxes and employee benefits Other accrued liabilities Customer deposits Deferred and unrealized revenues Deferred compensation Due to other funds Due to student organizations Payable from restricted assets: Contracts payable Retainage payable Due to other funds Unearned grant receipts Accrued annual leave General obligation bonds payable Environmental Protection Agency loan Total liabilities Fund equities: Contribution in aid of construction Investment in general fixed assets Retained earnings Fund balance: Reserved: Encumbrances Fuel inventory Unreserved: Governmental Fund Types Special Debt Capital General Revenue Service Proiects 43,111 798,098 - 241,987 - - - 87,932 - 669,798 - - 23,640 788,857 - - 3,316 307 - - 300 - - 1,817,904 774,779 2,127,435 361,123 - 163,807 550,000 2,197,502 4,436,080 307 1,818,505 15,981 100,841 - 537,229 - 82,952 - - Designated for subsequent year - - - - expenditures 3,082,390 444,114 5,945,729 642,851 Undesignated - 3,355,880 - 672,309 Total fund equities 3,098,371 3,983,787 5,945,729 1,852,389 55,295,873 58.419.867 S5,946,036 53,670,894 See accompanying notes to the general purpose financial statements 1 1 EXHIBIT 1 (Continued) Proprietary Fiduciary Totals Fund Type Fund Type Account Groups (Memorandum Only) Agency General General Long - Enterprise Fun Type Fixed Assets Term Debt 1989 1988 128,847 2,784 - - 1,214,827 634,379 - - - - 87,932 439,323 - - - - 669,798 1,089,251 347,142 - - - 1,159,639 685,571 20,975 - - - 24,598 14,686 11,655 - - - 11,955 7,601 - - - - 2,592,683 3,659,851 519,926 - - 519,926 383,248 10,525 - - - 2,662,890 5,091,772 - 92,360 - - 92,360 107,011 - - - - 19,995 ' - - - 40,651 6,055 - - - 6,055 - - - - 136,481 136,481 133,423 ' - - 17,000,000 17,550,000 22,160,000 - - - 322.910 322.910 343.749 525.199 615.070 - 17.459.391 27.052.054 34.810,511 20,368,863 - - - 20,368,863 20,755,422 - 77,114,448 - 77,114,448 71,790,129 5,527,209 - - - 5,527,209 5,111,083 - - - 654,051 5,341,846 - - - 82,952 73,680 " - - 10,115,084 11,528,557 ' - - 4.028.189 253.436 25.896,072 - _77.114.448 - 117.890.796 114.854.153 S26.421,271 $ 615.070 577.114.448 X17,459,391 X144,942.850 5149,664.664 19 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1989 Revenues: Property taxes Intergovernmental: State sources Federal sources Land sale proceeds Exxon reimbursement Insurance proceeds Asbestos settlement Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures: Current: Borough Assembly Mayor's department Clerk's department Finance department Legal department Consolidation committee Assessment department Community development department Engineering department Health and sanitation Data services Resource management General administration Building inspector's department Emergency preparedness Facilities coordinator department Community and regional affairs liaison Education support Economic development Switchboard /Hord processing Culture and recreation Oil spill cleanup Capital outlay: Capital improvements Schools Service district maintenance General Debt service Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Demand bond principal payments Operating transfers in Operating transfers out Net other financing sources (uses) Excess (deficiency) of revenues and other financing General S 2,515,436 3,444,912 5,036 95,748 354,523 6,415,655 65,716 127,046 193,671 208,486 81,290 13,308 174,257 281,250 84,179 517,112 145,512 58,663 299,131 28,357 52,728 4,551 28,997 30,817 69,592 161,460 2,626,123 3,789,532 56,410 (2.996,437 (2,940,027 sources over expenditures and other financing uses 849,505 Fund balance at beginning of year 2,248,866 Adjustment to reserve for fuel inventory Fund balances at end of year S 3,0371 See accompanying notes to the general purpose financial statements Special Revenue S 210,272 18,798,869 1,005,261 377,586 1,013,079 672,475 514.792 22,592,334 28,203 1,601,954 733,752 15,698,012 1,083,905 44,633 119,596 27,713 19,337,768 3,254,566 2,991,640 (6,741,075 (3,749.435 (494,869) 4,469,386 9,270 S39�87 I � EXHIBIT 2 7 Totals (Memorandkm Only) Debt capital Service Proiects 1989 1988 S S - S 2,725,708 S 2,672,156 - 957,200 23,200,981 22,004,517 - - 1,010,297 790,111 - 377,586 588,547 - - 1,013,079 - 366,904 366,904 1,414,685 - 647,480 647,480 634,061 - 11,083 779,306 676,699 305.707 294.512 1.469,534 1.943,025 305.707 2.277.179 31.590,875 30.723,801 - - 65,716 38,112 127,046 140,529 193,671 152,543 208,486 228,706 81,290 79,491 13,308 1,563 174,257 159,481 - - 309,453 248,287 - - 84,179 64,787 2,119,066 1,881,164 145,512 178,519 - 58,663 52,430 • 1,032,883 1,061,068 - - 82,806 - 28,357 80,903 - 52,728 26,656 - 4,551 5,166 15,727,009 15,498,297 30,817 28,668 - 69,592 61,542 161,460 146,990 - 1,083,905 - - 44,633 4,825,007 4,825,007 7,595,506 - 119,596 131,240 - 2,408,673 2,436,386 1,791,854 6,584.817 6.584,817 5.481,302 6.584.817 7.233,680 35.782,388 35,217.610 (6,279,110 (4.956,501 (4,191,513 (4,493.809 - 2,200,000 2,200,000 2,050,000 5,004,975 2,705,027 10,758,052 8,311,243 (5,540 (1.350.000 (11,093,052 (8,496,243 4.999.435 3.555.027 1,865.000 1.865.000 (1,279,675) (1,401,474) (2,326,513) (2,628,809) 7,225,404 3,253,863 17,197,519 19,824,813 9.270 1.515 S 5,945,729 S 1,852,389 S 14,880,276 $17,197,519 7 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND, SPECIAL REVENUE FUNDS AND DEBT SERVICE FUNDS YEAR ENDED JUNE 30, 1989 Revenues: Property taxes Intergovernmental: State sources Federal sources Land sale proceeds Exxon reimbursement Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures: Current: Borougo Assembly Mayor's department Clerk's department Finance department Legal department Consolidation committee Assessment department Community development department Engineering department Health and sanitation Data services Resource management General administration Emergency preparedness Facilities Coordinator department Community and regional affairs liaison Education support Economic development Switchboard \Word processing Culture and recreation Oil spill cleanup Capital outlay: Capital improvements Schools Service district maintenance General Debt service: Principal Interest Fiscal agent fees Other Total expenditures Excess (deficie -K y) of revenues over expenditures General Fund Special Revenue Funds Variance Favorable Budget Actual (Unfavorable) Budget Actual S 2,584,710 S 2,515,436 S (69,274) S 214,225 S 210,272 2,707,240 3,444,912 737,672 18,883,120 18,798,869 720 5,036 4,316 1,129,170 1,005,261 - - - 308,500 377,586 - - - 500,000 1,013,079 67,550 95,748 28,198 646,085 672,475 161,500 354,523 193,023 428,140 514.792 5. 521,720 6,415,655 893,935 22. 109,240 22. 592,334 60,000 65,716 (5,716) 129,970 127,046 2,924 202,330 193,671 8,659 245,560 208,486 37,074 85,720 81,290 4,430 14,000 13,308 692 178,610 174,257 4,353 312,470 281,250 31,220 37,680 28,203 159,360 84,179 75,181 525,000 517,112 7,888 1,715,492 1,601,954 170,220 145,512 24,708 61,410 58,663 2,747 396,850 299,131 97,719 891,230 733,752 34,000 28,357 5,643 52,760 52,728 32 3,780 4,551 (771) 22,200 28,997 (6,797) 16,419,346 15,698,012 30,000 30,817 (817) 65,860 69,592 (3,732) 161,500 161,460 40 - - 1,000,000 1,083,905 - - 82,590 44,633 - - - 131,130 119,596 - - - 37,600 27,713 2,911.600 2,626,123 285,477 19,337,768 20,315,068 2,610.120 3,789,532 1,179,412 1,794,172 3,254,566 See accompanying notes to the general purpose financial statements 8 1 EXHIBIT 3 Variance Favorable (Unfavorable) S (3,953) (84,251) (123,909) 69,086 513,079 26,390 86.652 483.094 9,477 113,538 157,478 721,334 (83,905) 37,957 11,534 9,887 977,300 Debt Service Funds Variance Favorable Budget Actual (Unfavorable) S S S Totals (Memorandum Only) Variance Favorable Budget Actual (Unfavorable) S 2,798,935 S 2,725,708 S (73,227) 21,590,360 22,243,781 653,421 1,129,890 1,010,297 (119,593) 308,500 377,586 69,086 500,000 1,013,079 513,079 713,635 768,223 54,588 796.820 1.175.022 378,202 27.838.140 29.313.696 1.475.556 207.180 305.707 98,527 207.180 305,707 98.527 5,385,840 1,542,190 158,470 43.500 5,135,834 1,396,688 66,030 (13.735 6.584,817 250,006 145,502 92,440 57.235 7.130.000 545.183 60,000 129,970 202,330 245,560 85,720 14,000 178,610 350,150 159,360 2,240,492 170,220 61,410 1,288,080 34,000 52,760 3,780 16,441,546 30,000 65,860 161,500 1,000,000 82,590 131,130 37,600 5,385,840 1,542,190 158,470 43.500 30.356.668 65,716 127,046 193,671 208,486 81,290 13,308 174,257 309,453 84,179 2,119,066 145,512 58,663 1,032,883 28,357 52,728 4,551 15,727,009 30,817 69,592 161,460 1,083,905 44,633 119,596 27,713 5,135,834 1,396,688 66,030 (13.735 28.548,708 1.460.394 (6.922.820 (6.279.110 643.710 (2.518.528 764.988 (5,716) 2,924 8,659 37,074 4,430 692 4,353 40,697 75,181 121,426 24,708 2,747 255,197 5,643 32 (771) 714,537 (817) (3,732) 40 (83,905) 37,957 11,534 9,887 250,006 145,502 92,440 57.235 1.807,960 3.283.516 Continued 9 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND, SPECIAL REVENUE FUNDS AND DEBT SERVICE FUNDS YEAR ENDED JUNE 30, 1989 General Fund Special Revenue Funds Variance Favorable Budget Actual (Unfavorable) Budget Actual Other financing sources (uses): Operating transfers in 56,410 56,410 3,028,600 2,991,640 Operating transfers out (2.987.840 (2.996,437 (8,597 (6,513.817 (6.741.075 Net other financing sources (uses) (2.931,430 (2,940.027 (8.597 (3.485.217 (3,749,435 Excess (deficiency) of revenues and other financing sources over expen- ditures and other financing uses E$ (3� 849,505 $1,170,815 $(1.691,045 (494,869) Fund balance at beginning of year 2,248,866 4,469,386 Adjustment to reserve for fuel inventory - 9,270 Fund balances at end of year $ 3,098,371 $ 3,983,787 See accompanying notes to the general purpose financial statements 10 EXHIBIT 3 (Continued) 11 Debt Service Funds Totals (Memorandum Only) Variance Variance _ Variance Favorable Favorable Favorable (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) (36,960) 4,826,220 4,996,378 170,158 7,911,230 8,044,428 133,198 (227,258 (9,501,657 (9,737,512 (235,855 (264,218 4,826,220 4,996,378 170,158 (1,590,427 (1,693,084 (102,657 $1,1 96,176 S(2,0�� (1,282,732) S 813,868 S(4,1108,955 (928,096) S 3,180,859 7,091,981 13,810,233 9,270 S 5,809,249 $12,891,407 11 EXHIBIT 4 Operating expenses: Personal services KODIAK ISLAND BOROUGH 149,729 Waste collection 609,171 PROPRIETARY FUND TYPE - ENTERPRISE FUND Purchased water and sewer treatment 281,873 COMBINED STATEMENT OF REVENUES, EXPENSES AND Contracted services - 487,465 CHANGES IN RETAINED EARNINGS 42,925 41,463 Depreciation 717,679 YEAR ENDED JUNE 30, 1989 Installation costs 1,912 27,112 WITH COMPARATIVE TOTALS FOR 1988 3,109,657 2,704,084 Plant operations and household 592,110 1989 1988 1,899,789 Revenues: Other 571.917 116.435 Water sales $ 182,051 $ 172,875 Operating income (loss) Sewer service charges 230,147 216,125 Increase in retained earnings Refuse collection 503,569 - Retained earnings at beginning of year Sanitary landfill user fees 162,207 449,488 Retained earnings at end of year Patient revenues 6,105,723 6,087,580 Installation charges 2,348 33,014 See accompanying notes to the Other 207.077 103.333 Total revenues 7.393.122 7.062.415 Operating expenses: Personal services 300,672 149,729 Waste collection 609,171 - Purchased water and sewer treatment 281,873 216,890 Contracted services - 487,465 Repairs and maintenance 42,925 41,463 Depreciation 717,679 626,269 Installation costs 1,912 27,112 Professional care of patients 3,109,657 2,704,084 Plant operations and household 592,110 906,166 General administrative 1,899,789 1,580,947 Other 571.917 116.435 Total operating expenses 8.127.705 6.856.560 Operating income (loss) (734.583 205.855 Other income: Interest income 280,362 22,933 Other, primarily State of Alaska revenue sharing 133.434 343.101 i 413.796 366.034 Earnings before operating transfers (320.787 571.889 Operating transfers in 335,000 290,000 Operating transfers out - (105.000 Net operating transfers 335.000 185.000 Net earnings 14,213 756,889 Amortization of contribution in aid of construction 401.913 358.502 ' Increase in retained earnings 416,126 1,115,391 F Retained earnings at beginning of year 5.111.083 3.995.692 Retained earnings at end of year $5.5� $5.111.083 See accompanying notes to the general purpose financial statements 12 EXHIBIT 5 KODIAK ISLAND BOROUGH PROPRIETARY FUND TYPE - ENTERPRISE FUND COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Increase in working capital S2,1189 696 S 5� See accompanying notes to the general purpose financial statements 13 1989 1988 Sources of working capital: Operations: Net earnings $ 20,171 $ 756,889 Loss on sale of equipment 15,966 - Add: Depreciation which does not use working capital 717.679 626.269 Working capital provided by operations 753,816 1,383,158 State of Alaska grants 10,232 4,225,017 Contribution from the Kodiak Island Borough General Fund for purchase of equipment 13,762 43,315 Net decrease in restricted assets 2.079.981 541.117 Total sources of working capital 2.857.791 6.192.607 Uses of working capital: Acquisition of fixed assets 613,504 4,382,255 Increase in long -term receivable - 728,000 Funding of Borough designated investments - 50,263 Net decrease in current liabilities payable from restricted assets 54.591 453.639 Total uses of working capital 668.095 5.614.157 Increase in working capital S2.1�6.9 6 S 57 8.450 Changes in components of working capital: Increase (decrease) in current assets: Equity in central treasury $ (30,518) $(115,573) Other cash and cash equivalents 2,342,642 431,508 Receivables (43,264) 245,566 Inventories 17,080 27,559 Prepaid expenses 100.699 - 2.386.639 589.060 (Increase) decrease in current liabilities: Bank overdraft - 9,710 Due to other funds - 2,601 Accounts payable (76,847) 2,994 Customer deposits - 3,205 Accrued liabilities (120.096 (29.120 (196.943 (10.610 Increase in working capital S2,1189 696 S 5� See accompanying notes to the general purpose financial statements 13 KODIAK ISLAND BOROUGH I NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1989 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Scope and Presentation of Financial Statements The Kodiak Island Borough (Borough) was organized to perform the municipal duties allowed by Alaska Statutes and as directed by its residents. The accompanying financial statements include all funds, account groups, agencies and organizations over which the Borough exercises oversight responsibility. Oversight responsibility is derived from the Borough's power and includes, but is not limited to (a) financial interdependency, (b) selection of governing authority, (c) ability to significantly influence operations and (d) accountability for fiscal matters. The Borough reviewed its relationship with other organizations and determined that it exercised oversight responsibility over the following two organizations. Kodiak Island Borough School District: The Borough has delegated the operating responsibility for public education to the Kodiak Island Borough School District (School District). In accordance with statutes, the Borough retains ownership of the educationally related fixed assets and incurs the debt, if necessary, to finance the acquisition and construction of the school facilities. The Borough Assembly approves the total annual budget of the School District and may, during the year, increase or decrease the total appropriation. The Borough levies and collects taxes for the School District. The various funds and the general fixed asset account group of the School District have been combined with similar fund types and account groups of the Borough. Kodiak Island Borough Hospital: The Borough owns the Kodiak Island Borough Hospital (Hospital) and related furnishings. The Borough has contracted the Hospital's operating activities to the Lutheran Health Systems Management Company. By terms of that agreement, operating losses sustained (as contractually defined), if any, are the ultimate responsibility of the Borough. Annual contributions, as well as direct payment for equipment and plant repairs, are made by the Borough to subsidize the Hospital's financial operations. These contributions and direct payments are recorded as expenditures of the Borough's General Fund or Capital Projects Funds. The comprehensive financial position and operating results of the Hospital are included in these combined financial statements as an enterprise fund. Fiscal Year Ends The Borough has a June 30 year end. The School District, as required by State Statute, has a June 30 year end. The Hospital has a December 31 year end and the accompanying financial statements include the financial position for the Hospital as of December 31, 1988, and the results of operations for the year then ended. Presentation The combined financial statements provide a summary overview of the financial position of all funds and account groups and of the operating results of all funds. These combined statements have been prepared from the detailed statements included in the 14 1 combining and individual fund and account group statements and schedules included in this report. Total columns on the combined statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of these data. The accounting policies of the Borough conform to generally accepted accounting principles. FUND ACCOUNTING The accounts of the Borough are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. Operations of each fund are accounted for with a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Borough resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in the combined financial statements in this report into six generic fund types and three broad fund categories as follows: GOVERNMENTAL FUND TYPES General Fund - The General Fund is the general operating fund of the Borough. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. Debt Service Funds - The Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest and related costs. Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for acquisition or construction of major capital facilities and equipment. PROPRIETARY FUND TYPE Enterprise Funds - The Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and /or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. 15 FIDUCIARY FUND TYPE Agency Funds - To account for assets held by the Borough as an agent for individuals and other entities. These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. ACCOUNT GROUPS The accounting and reporting treatment applied to the fixed assets and long -term liabilities associated with a fund are determined by its measurement focus. Governmental Fund Types are accounted for on a spending or financial flow measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balances (net current assets) are considered a measure of available spendable resources. Governmental Fund Type operating statements present increases (revenues and other financial sources) and decreases (expenditures and other financial uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. The two account groups are not funds. They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. General Fixed Assets - Fixed assets used in Governmental Fund Type operations (general fixed assets) are recorded as expenditures of the various Borough funds at the time of purchase and are subsequently capitalized in the General Fixed Assets Account Group. Such assets include land, buildings, equipment, furniture and other related assets. Public domain (infrastructure) general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, are not capitalized. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. General Long -Term Debt - Long -term liabilities expected to be financed from Governmental Fund Types are accounted for in the General Long -Term Debt Account Group, not in the Governmental Fund Types. Noncurrent portions of long -term receivables due to Governmental Fund Types are reported on their balance sheets, in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered available spendable resources since they do not represent net current assets. Recognition of Governmental Fund Type revenues represented by noncurrent receivables is deferred until they become current receivables. Noncurrent installments of long -term loans receivable are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for Governmental ■ Fund Types is limited to exclude amounts represented by non- current liabilities. ■ Since they do not affect net current assets, such long- term amounts are not recognized as Governmental Fund Type expenditures or fund liabilities. They are instead reported as liabilities in the General Long -Term Debt Account Group. 1 16 1 PROPRIETARY FUND TYPE The Proprietary Fund Type is accounted for on a cost of services or capital maintenance measurement focus. This means that all assets and all liabilities (whether current 1 or noncurrent) associated with its activity are included on its balance sheet. Its reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. The Proprietary Fund Type operating statement presents increases (revenues) and decreases (expenses) in net total assets. Depreciation of all exhaustible fixed assets used by the Enterprise Funds is charged as an expense against their operations on a straight -line basis over the following estimated useful lives: Utility plant 50 years Hospital - building and fixed equipment 28 -33 years Major movable equipment 5 -10 years Contributions in aid of construction for the Water, Sewer and Sanitary Services Enterprise Funds are amortized over the estimated useful lives of the assets acquired using the straight -line method. B. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the combined financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. Governmental Fund Types are accounted for using the modified accrual basis of accounting. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to this general rule is principal and interest on general long -term debt which is recognized when due. Prepayment of insurance and similar services extending over more than one year are allocated to the years benefitted. Pursuant to this basis of accounting, material revenues which are both measurable and available are accrued and other revenues are recorded on the cash basis. Summarized below are the major sources of revenue and the applicable recognition policies: Property Taxes Property taxes are based on the assessed value of taxable property as of January 1. Pursuant to Alaska Statute 29.53.170, the Borough establishes the mill rate on or before June 15. Tax bills may be paid in two installments on August 15 and November 15; otherwise the amount is due and payable by October 15. Borough property tax revenues are recognized in the fiscal year for which they are levied and in which they become measurable and available. Intergovernmental Revenue State of Alaska shared revenues, State of Alaska municipal assistance and various State education - related entitlement programs and State levied taxes (the proceeds of which are distributed to local governments) are recorded in the fiscal year to which they 17 J relate, including accrual at year end of final payments due within approximately two to three months after year end. State of Alaska and Federal government cost reimbursable grants and contracts (including grants for construction) are recorded to the extent of allowable expenditures in the period in which the expenditures were incurred. Revenue from Investments and Property [ Amounts earned on investment of available cash balances and the rental of building facilities are recorded in the period to which they relate, including accrual at year end of balance due. Land Sales Proceeds and Other Local Revenues Amounts received pursuant to land sale contracts (long -term in nature) are recorded on the cash basis. Other local revenues are recorded on a basis consistent with their nature in relation to measurement and availability standards. The Proprietary Fund Type is accounted for using the accrual basis of accounting. Its revenues are recognized when they are earned and its expenses are recognized when they are incurred. The Fiduciary Fund Type (Agency Fund) is accounted for using the modified accrual basis of accounting similar to that utilized by Governmental Fund Types. C. Budgets and Budgetary Accounting The Borough The Borough follows these procedures in establishing the budgetary data reflected in the combined financial statements: a. The Mayor 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. b. Public hearings are conducted by the Borough Assembly to obtain taxpayer comments. C. By June 10, by Borough Assembly action, the budget is legally enacted through passage of an ordinance. If the Borough Assembly fails to pass an ordinance, the budget submitted by the Mayor becomes the adopted budget. d. Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or administrative action. Generally, the following actions are required at the level of the particular change: (1) All new appropriations are authorized by an appropriation ordinance that amends the annual budget ordinance. (2) A resolution of the Borough Assembly is required to move (appropriate) amounts between departments and projects. I 18 1 (3) 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. e. Expenditures may not legally exceed appropriations at the following levels: General Fund - department level; Capital Projects Funds - project level; all other funds - fund level. f. All funds, except Debt Service - Other, are budgeted on an annual basis encompassing a fiscal year, except that budgets of Capital Projects Funds generally encompass project completion which is generally P the period of P ro all required to be Debt Service -Other is not le q neater than one legally g ear. Y budgeted. i� � g. 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. h. Budgets adopted by the Borough Assembly are in accordance with generally accepted accounting principles. The School District Annual budgets are adopted by the School Board for all revenues, expenditures and interfund transfers. Budgets are prepared and presented on the modified accrual basis of accounting. Pursuant to Alaska Statutes, the adopted budget is submitted to the Borough Assembly for review and approval. The Borough Assembly is required to approve the School District budget in total only and, by ordinance, appropriate the necessary resources no later than April 30 of the current fiscal year. The School Board retains line item authority once the annual local appropriation is set by the Borough Assembly. In the year ended June 30, 1989, there were three formal budget revisions to adjust the revenues and expenditures to available resources and program needs. The Hospital - Hospital operations are not legally required to be budgeted. D. Assets, Liabilities and Fund Equity INTERFUND TRANSACTIONS Transactions that would be treated as revenues, expenditures or expense if they involved organizations external to the borough are similarly treated if they occur between the fund types. Reimbursements from one fund to another are treated as expenditures or expenses of the reimbursing fund and a reduction of the expenditures or expenses of the reimbursed fund. Transfers from funds receiving revenues to funds through which the resources are to be expended, and operating loss subsidies are classified as operating transfers. Nonrecurring or nonroutine transfers of equity between funds are recorded as equity transfers. 19 ENCUMBRANCES I Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the , applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds and Capital Projects Funds. Encumbrances outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. INVENTORIES The Kodiak Island Borough Expendable operating supplies of the Borough are accounted for using the purchase method and, at June 30, 1989, there was no significant amount of such items. The School District Expendable operating supplies of the School District, consisting primarily of teaching, maintenance and food supplies, are accounted for using the consumption method. These inventories are valued at the lower of average cost or market, except USDA food inventory (acquired at nominal price) which is recorded at replacement cost. Fuel inventory is accounted for using the purchase method and is recorded at cost on the first -in, first -out basis. The Hospital Inventories are stated at the lower of cost or market, with cost determined substantially on a FIFO basis. RETIREMENT PLANS All full -time employees of the Borough and School District participate in either the Alaska Public Employees' Retirement System (PERS) or the Alaska Teachers' Retirement System (TRS). The Borough and School District accrue pension expense which includes current costs and amortization of prior service costs. The policy is to fund pension costs accrued. ANNUAL LEAVE The Borough (excluding the School District) records its liability for accrued annual leave in the Governmental Fund Types for the amounts estimated to be liquidated with current available resources. The commitment for accrued annual leave not included in the Governmental Fund Types is recorded in the General Long -Term Debt Account Group. Cash sufficient to pay the long -term debt is deposited in a Debt Service Fund. Enterprise Funds and the School District record leave (including sick leave) as earned. 1 20 1 NOTE 2 - CASH AND T EMPORARY INVESTMENTS Cash balances of most Borough funds are pooled in a central treasury. Each fund type's portion of this pool is displayed on the combined balance sheet as "Equity in central treasury ". In addition, investments are separately held by several of the Borough's funds. Investments, other than investment in deferred compensation plan which is carried at market value, are carried at cost. Reclassification Certain items in the 1988 financial statements have been reclassified to conform to 1989 presentation. There was no effect on previously reported excess (deficiency) of revenues and other financing sources over expenditures and other financing uses, net earnings, fund balance or fund equity. W Deposits At June 30, 1989, the carrying amount of the Borough's deposits was $1,021,926 and the bank balance was $1,915,150. The bank balance was covered by FDIC or other insurance or by collateral held by the Borough's agent in the Borough's name except for $273,291. Investments Statutes authorize the Borough to invest in obligations of the United States, the State of Alaska and its political subdivisions, savings accounts, certificates of deposit, banker's acceptances, repurchase agreements and such other legal security instruments. In accordance with Governmental Accounting Standards Board Statement No. 3 (GASB 3) investment are categorized as follows: Category 1 includes deposits and investments that are insured, as defined by GASB 3, registered or collateralized with securities held by the Borough or its agent in the Borough's name. Category 2 includes uninsured and unregistered investments or collateralized investments, with securities held by the pledging financial institution's trust department in the Borough's name. Category 3 includes collateralized investments, with securities held by the pledging financial ' institution or by its trust department but not in the Borough's name. Investments of the Borough are insured by other forms of insurance not meeting the criteria of GASB 3. 11 21 The above investments are reported under the following captions in the combined financial statements: Equity in central treasury Restricted temporary investments Temporary investments Other cash and cash equivalents Total cash $ 821,453 476,382 12,998,394 3,306.468 $17.602,697 The Borough Code requires all investments to be collateralized and /or insured. Collateral pledged on investments is required to be held for the Borough by a third party bank. Other Cash and Investments In addition to the above cash and investments which are under the control of the Borough, the following is also reported in the financial statements: investments managed by deferred compensation plan administrators ($519,926). I u 1 22 1 4 Category Carrying Market 1 2 3 Amount Value Repurchase agreements S S S 2,750,000 S 2,750,000 S 2,750,000 U.S. Government Securities - 2,100,002 496,825 2,596,827 2,614,876 Municipal Securities 2,825,104 - 2,825,104 2,720,380 Banker's Acceptances 1,908,197 482,917 2,391,114 2,446,038 Commercial Paper - - 2,911,731 2,911,731 2,957,115 Equity in central treasury - - 821,453 821,453 821,453 Deposits 123,418 77,055 200,473 200,473 Deposits with fiscal agents for debt service 100,000 - 548,922 648,922 648,922 Residual cash with brokers - - 4,641 4,641 4,641 Mutual Fund 2.452.432 2. 452,432 2,452.432 SS 223,418 S 6,833,303 $10,545,976 $17,602.697 $17.6 The above investments are reported under the following captions in the combined financial statements: Equity in central treasury Restricted temporary investments Temporary investments Other cash and cash equivalents Total cash $ 821,453 476,382 12,998,394 3,306.468 $17.602,697 The Borough Code requires all investments to be collateralized and /or insured. Collateral pledged on investments is required to be held for the Borough by a third party bank. Other Cash and Investments In addition to the above cash and investments which are under the control of the Borough, the following is also reported in the financial statements: investments managed by deferred compensation plan administrators ($519,926). I u 1 22 1 4 Investments (including time certificates of deposit) made by the Borough are identified by the specific funding source. A summary of these investments at cost on June 30, 1989 follows: Repurchase agreements - National Bank of Alaska 8.7% 9.4% United States Government Securities: Seattle First National Bank 8.5% 9.4% Merrill Lynch, Pierce, Fenner and Smith, Inc. 9.936% Paine Webber, Inc. 10.0% Special Debt General Revenue Service Fund Funds Funds S 250,000 S 300,000 $1,000,000 750,000 - 1.000,000 300,000 1,000.000 1,000,000 1,000,000 496,825 - 100.002 1.496.825 1,000.000 100,002 Capital Projects Funds $200,000 200,000 2,825,104 2. 825,104 - - 482,917 955,433 476.382 476.382 1.438.350 S 250,000 S 2,000,000 - 750.000 250.000 2.750,000 Municipal Securities Paine Webber, Inc. 4.0 - 7.0% Banker's Acceptances: Merrill Lynch 10.354% Seattle First Bank 9.329% 9.916% Commercial Paper: Merrill Lynch, Pierce, Fenner and Smith, Inc. 9.875% 9.977% Bateman Eichler, Hill Richards, Inc. 8.83% 9.704% Total temporary investments 1,015,461 - - 238,122 Enterprise Funds Total 1,000,000 1,000,000 496,825 100.002 2,596,827 2. 825.104 2. 825.104 482,917 955,433 476.382 952.764 476,382 2.391.114 1,015,461 238,122 - 1,052,732 1,052,732 605,416 - - 605.416 1,015,451 - 605,416 1,290,854 2,911.731 S 3,512,286 SS 1� S 4,530,522 $ 2� 9 $ 726,382 $13,474,776 NOTE 3 - ANNUAL APPROPRIATION TO THE SCHOOL DISTR An annual appropriation is made to the School District in order to provide the School District with total resources in a fiscal year equal in amount to budgeted expenditures. In addition to the annual appropriation, the Borough provides the School District, without charge, general liability and property insurance and the annual independent audit. E *] C NOTE 4 - HOSPITAL APPROPRIATION I By terms of the operating agreement with the Lutheran Health Systems Management Company, the Borough is ultimately responsible for operating losses (as contractually defined), if any, sustained by the Hospital. , Shared revenue received by the Borough from the State of Alaska includes $149,400, required to be passed through to the Hospital. The Borough recorded this amount as intergovernmental revenue and the pass- through as an expenditure for Hospital support. NOTE 5 - RETIREMENT COMMITMENTS As of June 30, 1989, substantially all employees of the Borough and School District participate in either the Alaska Public Employees' Retirement System (PERS, an agent multiple - employer PERS) or the Alaska Teachers' Retirement System (TRS, a cost - sharing, multiple - employer PERS). Borough personnel and School District classified personnel (except those working less than fifteen hours per week) participate in PERS. School District certificated personnel participate in TRS. Both systems are statewide defined benefit retirement plans, administered by the State of Alaska. Plan Descriptions and Provisions Public Employees' Retirement System (PERS Employees hired prior to July 1, 1986 with five or more years of credited service are entitled to annual pension benefits beginning at normal retirement age 55 or early retirement age 50. For employees hired after June 30, 1986, the normal and early retirement ages are 60 and 55, respectively. The normal pension benefit is equal to 2% of the member's three highest average monthly compensation for the first ten years of service, 2 -1/4% for the second ten years of service and 2 -1/2% for the third ten years of service. All service earned prior to July 1, 1986 will be calculated using the 2% multiplier. Employees with 30 or more years of credited service may retire at any age and receive a normal benefit. The system also provides death and disability benefits and major medical benefits. Under state law, covered employees are required to contribute 6.75% of their annual salary to the System and the Borough and School District contribute the amount actuarially required in addition to employee contributions to finance the benefits of the system. Teachers' Retirement System (TRS) The Teachers' Retirement System of Alaska is a joint contributory retirement system to provide benefits for teachers of the State of Alaska. All the School District's certificated employees are participants in TRS. Membership in TRS is compulsory for each certificated elementary or secondary teacher or other certificated personnel who are employed on a full -time or part -time basis in positions that require teaching certificates as a condition of employment. Employees with eight years or more of credited service are entitled to pension benefits beginning at normal retirement age (55) equal to 2% of their highest three -year average monthly compensation for each year of service. The Plan permits early retirement at age 50. Employees may elect to receive their pension benefits in the form of a joint or survivor annuity. Effective January 1, 1987, a married member who retires must receive his benefit in the form of a joint and survivor annuity unless the member's 24 1 spouse consents to another form of benefit. Minimum benefits for employees eligible for retirement are $25 per month for each year of credited service. In addition, major medical benefits are provided. TRS also provides death and disability benefits. Under state law, covered employees are required to contribute 7% of their base salary earned from July 1 to the following June 30. The School District is required to contribute the amount actuarially needed in addition to member contributions to finance the benefits of the System. Fundine Status and Prowess The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the System on a going- concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the System. The pension benefit obligation was computed as part of an actuarial valuation as of June 30, 1988 (latest available). Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets of 9 percent per year compounded annually, (b) projected salary increases of 6.5 percent a year for the first five years of employment and 5.5 percent per year thereafter. The pension benefit obligation of PERS and TRS as calculated in the most recent I actuarial valuation is as follows (in thousands): 11 25 PERS TRS (1) School All Borough District Employers Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $ 906 $2,911 $ 688,090 Current employees: Accumulated employee contributions including allocated investment earnings 416 667 228,217 Employer -- financed vested 863 2,000 381,726 Employer -- financed nonvested 495 899 49.826 TOTAL PENSION BENEFIT OBLIGATION 2,680 6,477 1,347,859 Net assets available for benefits, valued on a three year average ratio between market and book values of the System's assets except that fixed income investments are valued at book value 2.896 7.111 1.331.905 ASSETS IN EXCESS OF (UNFUNDED) PENSION BENEFIT OBLIGATION 216 634 (�15 9540 11 25 G (1) The TRS system does not make separate measurements of assets and pension benefit obligation for individual employers. Amounts for TRS represent the system as a whole. The School District's actuarially determined contribution was .9% of the total current year actuarially determined contribution requirements for all employers. Actuarially Determined Contribution Requirements and Contributions Made The System's funding policy provides for actuarially determined periodic contributions at rates that fund each participant's benefits under the plan as they accrue. The contribution rate for normal cost is determined using the projected unit credit actuarial funding method. The unfunded accrued benefit liability is amortized over 25 years. Actuarial funding surpluses are amortized over five years. The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation. The Systems have an actuarial valuation performed annually (as of June 30) which determines the contribution rates for the year ended two years subsequent to the valuation date. The contributions to the Systems for fiscal year 1989 were made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1987. The contributions (in thousands) consisted of the following: Covered payroLL- Contributions - NormaL cost Amortization of unfunded liability (funding surplus) TOTAL Employer Employee TOTAL PERS Borough Percent of Covered Amount Payroll $2.131 100.00 362 16.95 (2 0.00 $ 341 15.95% $ 197 9.20% 144 6.75 S 341 15.95% PERS School District Percent of Covered Amount Payroll $2.526 100.00 428 16.95 (100 $ 328 $ 158 170 S 329 (3.96 6.24% 6.75 1 TRS Percent of Covered Amount Payroll $7.464 10�% 1 257 16.83 , 134 1.80 $1.391 18.63% $ 868 11.63% 523 7.00 $1.391 18.63% Total current year payroll for the Borough and School District was $2,302,006 and $10,478,814 respectively. I � 26 Historical Trend Information 115% 1128 1988 Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. The pension benefit obligation has not been determined by the actuary for years prior to June 30, 1987. As a result, only information at June 30, 1988 and 1987 is available regarding the following trend indicators, (in thousands): 1987 16.078 24.268 1988 10.148 PERS 1987 6.758 6.758 1988 School 6.758 1989 Borough District Net asset available for benefits: 1987 $2,222 $5,685 9.208 1988 2,896 7,111 Pension benefit obligation (PBO): 1987 $1,928 $5,085 1988 2,680 6,477 Net assets available for benefits as a percentage of PBO: Assets in excess of PBO: Annual covered payroll: Assets in excess of PBO expressed as percentage of annual covered payroll: Contribution rates: Employee Employer 1987 115% 1128 1988 1088 1108 1987 $ 294 $ 600 1988 216 634 1987 $1,830 2,473 1988 2,131 2,526 1987 16.078 24.268 1988 10.148 25.108 1987 6.758 6.758 1988 6.758 6.758 1989 6.758 6.758 1987 4.278 7.298 1988 9.208 6.248 1989 9.208 6.248 NOTE 6 - FIXED ASSETS A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1989 follows: FA Balance Balance July 1. 1988 Additions Deductions June 30. 1989 Land $ 7,469,315 $ - $ - $7,469,315 Buildings 50,813,669 7,845,592 - 58,659,261 Improvements other than buildings 842,139 - - 842,139 Machinery and equipment 2,901,849 391,442 60,845 3,232,446 Construction work in progress 9.763.157 4.993.722 7.845.592 6.911.287 $71.790.129 $13.230.756 57.9x® $77.114 FA The following is a summary of enterprise fund -type fixed assets at June 30, 1989: 1 Unclassified utility plant in service $17,874,572 Hospital building and fixed equipment 4,186,825 Major movable equipment 1.933.487 23,994,884 Less: accumulated depreciation (3.685.933 20,308,951 Construction work in progress 109.607 Net Fixed Assets $20.418.558 NOTE 7 - DEMAND BONDS Long -Term Debt Included in long -term debt is $7,000,000 of general obligation demand bonds maturing serially through June 1, 1996 backed by the full faith, credit, and taxing power of the Borough. The bonds were issued pursuant to an ordinance adopted by the Borough Assembly on February 6, 1986. The proceeds of the bonds were used to (a) provide funds for certain school improvements and (b) pay costs incurred to issue the bonds. The redemption schedule for these bonds is included in the bond redemption schedule in Note 8. The bonds are subject to purchase on the demand of the holder at a price equal to principal plus accrued interest on seven days' notice and delivery to the Borough's remarketing agent, John Nuveen and Co. The remarketing agent is authorized to use its best efforts to sell the repurchased bonds at a price of not less than the principal amount plus accrued interest. Under an irrevocable letter of credit issued by Barclays Bank PLC, the trustee is entitled to draw an amount sufficient to pay the purchase price of bonds delivered to it. The letter of credit is valid through June 11, 1991 and carries a variable interest rate which increases over time from the institution's prime lending rate to prime plus 1 -1/2 %. If the remarketing agent is unable to resell any bonds that are "put" within the notice period then the Borough has 365 days to repay the bank. The Borough is required to pay to Barclays Bank PLC an annual commitment fee for the letter of credit of 3/4 of 1 percent per annum of the outstanding principal amount of the bonds, plus 65 days of interest at an interest rate of 15 percent. The Borough has also paid a letter of credit fee of $25,000 to Barclays Bank PLC. In addition, the remarketing agent receives an annual fee of one - eighth of 1 percent of the outstanding principal amount of the bonds. 28 M Fu nd Liabilit Included as a fund liability of the School Bond Improvements Capital Project Fund is 1 $550,000 of general obligation demand bonds maturing on July 1, 1989, backed by the full faith, credit, and taxing power of the Borough. The bonds were issued pursuant to an ordinance adopted by the Borough Assembly on April 14, 1984. The proceeds of the bonds were used to provide funds for certain school improvements. The bonds are subject to purchase on the demand of the holder at a price equal to principal plus accrued interest on seven days' notice and delivery to the trustee. The sales agent, John Nuveen and Co., is authorized to use its best efforts to sell the repurchased bonds at par plus accrued interest. Under an irrevocable letter of credit issued by Rainier National Bank, the trustee is entitled to draw an amount sufficient to pay the purchase price of bonds delivered to it. The letter of credit is valid through July 15, 1989 and carries a variable ' interest rate over time from 75 percent to 100 percent of the bank's prime rate. If the sales agent is unable to resell any bonds that are "put" within the notice period then the Borough is required to repay the bank the same day as the draw on the letter of credit. The Borough is required to pay to Rainier National Bank (now Security Pacific Bank) an annual facility fee or the letter of credit of from 3/4 of one percent to one percent of the outstanding principal amount of the bonds deposited with Security Pacific Bank 125 days of interest at an interest rate of 20 %. In addition, the sales agent receives an annual fee of one - fourth of one percent of the outstanding principal amount of the bonds. n 1 29 NOTE 8 - LONG -TERM DEBT The following is a summary of long term debt payable for the year ended June 30, 1989: Interest Payments Issue Maturity Woe of Debt Rates Dates Date Date Dates Amount Loans Payable: Environmental Protection Agency Asbestos Abatement General obligation Serial Bonds: Schools refunding Schools Schools, Multi - projects Schools, Refunding 6/20/85 11/8/05 12/30/89 S 10,408 06/30/90 10,408 12/31/90 10,417 to x 29 06/30/05 322.910 T.25X 8/1 -2/1 8 8/1/92 - 7.3% -9% 8/1 -2/1 8/1/80 8/1/2000 Variable Quarterly 5/28/86 6/1/96 6.6-8% 8/1 -2/1 5/1/89 8/1/2000 9/1/89 250,000 12/1/89 250,000 3/1/90 250,000 6/1/90 250,000 to x 25 6/1/96 7.000.000 8/1/89 690,000 8/1/90 575,000 8/1/91 630,000 8/1/92 680,000 8/1/93 725,000 8/1/94 780,000 8/1/95 835,000 8/1/96 890,000 8/1/97 945,000 8/1/98 1,015,000 8/1/99 1,080,000 8/1/00 1.155.000 10.000.000 $173 ,910 30 Authorized Prior Years Current Year Balance at Balance at Year Amount Issued Retired July 1, 1988 Issued Retired June 30, 1989 1986 S 375,000 S 375,000 S 31,251 S 343,749 S $ 20,839 S 322,910 1974 1,900,000 1,900,000 450,000 1,450,000 1,450,000 - 1979 12,100,000 12,100,000 2,140,000 9,960,000 9,960,000 1986 9,930,000 9,930,000 1,930,000 8,000,000 - 1,000,000 7,000,000 1989 10,000,000 10,000,000 $34,305,000 $24.305,000 $4.551.251 $19�� $10,000,000 $12,430,839 10,000,000 $17,322,910 31 A summary of long -term debt as of and for the year ended June 30, 1989 follows: General obligation bonds EPA loan payable Accrued annual leave Balance at Balance at July 1. 1988 Additions Deductions June 30. 1989 $19,410,000 $10,000,000 $12,410,000 $17,000,000 343,749 20,839 322,910 133.423 8.598 5.540 136.481 $19.887.172 $10.008.598 512,436,379 $17.459.391 The annual requirements to amortize all general obligation debt and the EPA loan payable outstanding as of June 30, 1989, including interest payments of $6,479,175 on the general obligation debt, are as follows: June 30, 1990 $ 2,413,974 1991 2,691,819 1992 2,620,819 1993 2,542,939 1994 2,463,059 1995 2,389,847 1996 2,312,976 1997 1,262,032 1998 1,256,511 1999 1,261,779 2000 1,256,744 2001 1,256,684 2002 -2005 72.902 $23,802,085 The amount of $5,809,249 is available in the Debt Service Funds to service all general obligation bonds (including the $550,000 in general obligation demand bonds reported in the capital project funds). There are a number of limitations and restrictions contained in the various bond indentures. The Borough is in compliance with all significant limitations and restrictions. Refunding Bonds During 1974, the Borough defeased existing school bonds by utilizing the proceeds of bonds then issued. The proceeds from the "refunding bonds" (issued in the amount of $2,325,000) have been invested in U.S. Government securities at an interest rate which will result in a return of proceeds that, when added to the securities' principal balances, will be sufficient to meet the interest and principal requirements of the defeased bonds. On May 1, 1989, the Kodiak Island Borough issued $10 million in General Obligation Bonds with an average interest of 6.93 percent to advance refund $9,495,000 of outstanding 1980 Series bonds with an average rate of 7.88 percent. The net proceeds 32 'I of $9,865,100 (including receipts of a premium of $20,613 and accrued interest of $94,265 and after payment of $249,778 in underwriting fees, insurance, and other issuance costs) were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future ' debt service payments on the 1980 Series bonds. As a result, the 1980 Series bonds are considered defeased and the liability for those bonds has been removed from the general long -term debt account group of the Kodiak Island Borough. The Borough advance refunded the 1980 Series bonds to reduce its total debt services payments over the next twelve years by almost $242,000 and to obtain an estimated economic gain (difference between the present values of the debt service payments on the old and new debt) of $1,071,901. The gain is based on receiving future debt service reimbursements from the State of Alaska at the rate structure currently in effect. The reimbursements are, however, subject to annual appropriation any may change. The investments in the securities and the current obligations of the defeased bonds are not reflected in the combined financial statements. A summary of the investments held in trust and the current obligations of the defeased bonds at June 30, 1988 are summarized as follows: Bond Principal Investments Outstanding Held in Trust Series 1974 School bonds, 5.5% to 5.7 %, due in installments to 1992 Series 1980 School bonds, 7.3% to 9.0 %, due in installments to 2000 $ 1,535,000 $ 1,545,510 (1) 9.495.000 9.865.100 (2) $11.030.000 S11.410.610 1 (1) Central Bank of Denver as Trustee (2) Security Pacific Bank at Seattle as Trustee NOTE 9 - CAPITAL PROJECTS FUNDS CONSTRUCTION COMMITMENTS A summary of Capital Projects Funds construction commitments at June 30, 1989 follows: Various Borough Projects $ 8,205 School Bond Improvements Fund 314,568 School Equipment and Furnishings Fund 29,853 State Capital Grants Fund 184.603 S 5 Resources are presently available or committed to finance construction commitments at June 30, 1989 for all funds except the School Bond Improvements Fund. The additional resources required in this fund will be available during fiscal year 1990. NOTE 10 - ENTERPRISE FUND SEGMENT INFORMATION The Borough owns and operates a Water and Sewer Utility Enterprise Fund and a Sanitary Landfill Fund. The Kodiak Island Borough Hospital is included in the Borough's financial statements as a component unit. The water, sewer and sanitary services 33 utilities have a June 30 year end while the Hospital operates on a December 31 year end. Segment financial data as of and for the year ended June 30, 1989 for the water, sewer and sanitary services utilities and as of and for the year ended December 31, 1988 for the Hospital are as follows: operating revenues Depreciation Operating income (loss) Operating grants entitlements Operating transfers in (out) Net earnings (toss) Contributions in aid of construction: Additions Amortization Property, plant and equipment additions Net working capital Total assets Total equity Sanitary Water Sewer Services Utility Utitity Hosaitat Totat S 666,093 S 201,641 S 233,395 S 6,291,993 $ 7,393,122 70,544 108,157 239,647 299,331 717,679 (349,308) (81,440) (260,870) (42,965) (734,583) - - 149,400 149,400 335,000 - - - 335,000 (13,102) (55,244) (250,316) 332,875 14,213 - - 1,592 13,762 15,354 69,426 108,14 8 224,339 - 401,913 141,330 18,102 20,889 433,183 613,504 (37,551) 243,268 34,938 4,118,558 4,359,213 2,483,741 5,717,163 9,508,866 8,711,501 26,421,271 2,411,956 5,679,934 9,493,074 8,311,108 25,896,072 NOTE 11 - DEFERRED COMPENSATION PLAN The Kodiak Island Borough has a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The Plan is available to all permanent Borough employees. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and the right of the Borough (without being restricted to the provisions of benefits under the plan), subject only to the claims of the Borough's general creditors. Participants' rights under the plan are equal to those of general creditors of the Borough in an amount equal to the fair market value of the deferred account for each participant. The funds are managed by the International City Managers Association Retirement Corporation. The Borough has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Borough believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. k 34 1 NOTE 12 - INDIVIDUAL FUND DISCLOSURES Interfund Receivables and Pa,abls A summary of interfund receivables and payables at June 30, 1989 is as follows: Receivable Payable Special Revenue Funds - Fire Protection Area 1 $ 290,743 $ - Special Revenue Funds - Women's Bay Fire - 18,105 Special Revenue Funds - Energy - 8,092 Special Revenue Funds - Oil Spill Cleanup - 264,546 Special Revenue Funds - Education 2,064,267 - General Fund - 2,064,267 Special Revenue Funds - Building and Grounds 63,168 - General Fund - 63,168 Capital Projects Funds - School Equipment and Furnishings 70,380 - Special Revenue Funds - Education - 70,380 Capital Projects Fund - Various Borough Projects 163,807 - Capital Projects Fund - State Capital Grants - 163,807 Enterprise Fund - Sanitary Services 16,580 - Enterprise Fund - Sewer - 10,525 Enterprise Fund - Sewer - Restricted - 3,027 Enterprise Fund - Water - Restricted 3.028 Fund Deficits Fund deficits at June 30, 1989 are as follows: 1 . a 9.45 52.6® Special Revenue - Women's Bay Road Services District $ 8,015 This deficit will be funded through increased fiscal year 1990 property tax levies. Capital Projects - State Capital Grants $ 62,677 Deficit will be funded in fiscal year 1990 through transfers from other funds. Interfund Transfers Interfund operating transfers have been made in accordance with budget ordinances with the exceptions of the transfer of the funding of long -term annual leave. 1 35 � Funds are transferred from one fund to support expenditures of other funds in accordance with the authority established for the individual fund. Transfers within ' fund types have been eliminated. Transfers between fund types during the year ended June 30, 1989, were as follows: g Excess of Expenditures Over Appropriations General Fund The following departments' expenditures exceed their appropriations: Department Excess Borough Assembly $ 5,716 Community and Regional Affairs 771 Education Support 6,797 Economic Development 817 Switchboard /word processing 3.732 $ 17,833 Capital Projects The following projects' expenditures exceeded their appropriation: Project Excess 045 -287 Old Harbor School $135,609 047 -187 Hospital Construction 47.118 182 727 Enterprise Fund The following funds' expenditures exceed their appropriation. Fund Excess Water $ 87,081 Sewer 242.125 1 111 d . 206 36 Out Transfers In Special Debt Capital 'meral Revenue Service Projects Enterprise and Funds Funds Funds Funds Fund Tvce Operating transfers: General Fund $2,996,437 S - $2,686,100 $ 8,597 $ 161,740 $140,000 Special Revenue 6,741,075 56,410 4,996,378 1,493,287 195,000 Capital Projects 300,000 - 300,000 Debt Service 5,540 5,540 Total Operating Transfers $10,043,052 $56,410 $2� $5,004,975 $1,655,027 $33 Excess of Expenditures Over Appropriations General Fund The following departments' expenditures exceed their appropriations: Department Excess Borough Assembly $ 5,716 Community and Regional Affairs 771 Education Support 6,797 Economic Development 817 Switchboard /word processing 3.732 $ 17,833 Capital Projects The following projects' expenditures exceeded their appropriation: Project Excess 045 -287 Old Harbor School $135,609 047 -187 Hospital Construction 47.118 182 727 Enterprise Fund The following funds' expenditures exceed their appropriation. Fund Excess Water $ 87,081 Sewer 242.125 1 111 d . 206 36 Proprietary Funds reconciliation of Fund equity for year ended June 30, 1989. Sanitary Water Serer Services Utility Utility Hospital Total Fund equity at beginning of year $2,425,058 $5,735,178 $9,741,798 $7,964,471 $25,866,505 Net earnings (loss) (13,102) (55,244) (250,316) 332,875 14,213 Increase in contributed capital 1,592 13.762 15.354 ' Fund Equity at end of year $2,411,956 $5,634 $9,493,074 $8,311,108 $25,8 Debt Service Funds The combined statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual does not include debt service - other numbers as the borough is not legally required to budget for that fund. Debt service - other statement of revenues, expenditures and changes in fund balance consists of the following: Operating transfer in: General Fund 8,597 8.597 Operating transfer out: Fire Service District Area 1 1,472 Mental Health 4.068 5.540 Net operating transfers 3.057 Fund balance at beginning of year 133.423 Fund balance at end of year 136 480 NOTE 13 - CONTINGENCIES Litigation The Borough, in the normal course of its activities, is involved in various claims and pending litigation. In the opinion of management, the disposition of the claims and litigation is not presently expected to have a material adverse effect on the Borough's financial statements. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by the grantor agencies. Any disallowed claims, including amounts already collected, would become a liability of the General or other applicable funds. In management's opinion, disallowances, if any, will be immaterial. 37 GENERAL FUND I I it] I I The General Fund accounts for the financial operations of the Borough that are not required to be accounted for in any other fund. Principal sources of revenue are property taxes and intergovernmental revenues. Primary expenditures in the General Fund are for general governmental and public services. I I it] I I EXHIBIT A -1 KODIAK ISLAND BOROUGH GENERAL FUND BALANCE SHEET YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 ASSETS 1989 Temporary investment $3,512,286 Other cash 1.235 Total cash and investments 3.513.521 Receivables: State of Alaska 1,749,479 Property taxes: Delinquent taxes 21,136 Allowance for uncollectible delinquent taxes (11.773 Net property taxes 9,363 Accrued interest receivable 23,510 Other - Net receivables 1.782.352 Prepaid - $5.2 LIABILITIES AND FUND BALANCE Liabilities: 1988 $5,000,961 3.702 5.004.663 968,914 25,610 (9.133 16,477 91,246 20.249 1.096.886 49.643 $6.1 Accounts payable $ 43,111 $ 28,063 Payroll taxes and employee benefits 23,640 78,421 Other accrued liabilities 3,316 7,934 Due to other funds 2.127.435 3.787.908 Total liabilities 2.197.502 3.902.326 Fund balance: Reserved for encumbrances 15,981 26,819 Designated for subsequent year expenditures 3.082.390 2.222.047 Total Fund Equities 3.098.371 2.248.866 $5.2� $6.1� 40 EXHIBIT A -2 11 41 Continued KODIAK ISLAND BOROUGH GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 1989 Variance Favorable 1988 1 Bud eg_t Actual (Unfavorable) Actual Revenues: ' Property taxes: Real $1,700,000 $1,643,093 $ (56,907) $1,587,212 Personal 219,300 220,072 772 222,486 ' Motor vehicle 150,000 173,644 23,644 157,141 Penalty and interest 40,000 33,519 (6,481) 44,818 Payment in lieu of taxes 475.410 445,108 (30,302 479,408 ' Total property taxes 2,584,710 2,515,436 (69,274 2,491,065 Intergovernmental: State sources: State shared revenue 862,520 863,771 1,251 874,093 Municipal assistance 527,690 526,608 (1,082) 527,690 ' Raw fish tax Electric co -op tax 1,312,340 4,480 2,044,881 9,634 732,541 5,154 875,085 4,484 Miscellaneous 210 18 (192 8,655 Total state sources 2,707,240 3,444,912 737,672 2,290,007 Federal sources 720 5,036 4,316 1,620 Total intergovern- ' mental 2,707,960 3,449,948 741,988 2,291,627 Licenses, permits, fees and other local revenues: ' Building and trailers 12,000 23,549 11,549 14,989 Subdivision and zoning fees Sale of copies 5,900 10,200 15,671 1,401 9,771 (8,799) 9,986 7,977 Switchboard services - 16,446 16,446 Emergency medical services 32,000 26,015 (5,985) - ' Miscellaneous 7,450 12,666 5,216 65,007 Total licenses, permits, fees and other local ' sources 67,550 95,748 28,198 97,959 11 41 Continued EXHIBIT A -2 (Continued KODIAK ISLAND BOROUGH GENERAL FUND STATEMENT OF REVENUES. EXPENDITURES. TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL , YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 , 1989 ■ Variance Budget Actual Favorable (Unfavorable) 1988 Actual Investments and property: Interest income 150,000 351,772 201,772 327,316 Gain on exchange 10,000 - (10,000) 26,486 ' Lease rentals on land and buildings 1,500 2,751 1,251 2,000 Computer rental - - 100 Total investments ' and property 161.500 354.523 193.023 355.902 Total revenues 5.521.720 6.415.655 893.935 5.236.553 Expenditures: Borough Assembly 60,000 65,716 (5,716) 38,112 Mayor's department 129,970 127,046 2,924 140,529 ' Clerk's department 202,330 193,671 8,659 152,543 Finance department 245,560 208,486 37,074 228,706 Legal services 85,720 81,290 4,430 79,491 Consolidation committee 14,000 13,308 692 1,563 ' Assessment department 178,610 174,257 4,353 159,481 Community development department 312,470 281,250 31,220 212,139 , Engineering department 159,360 84,179 75,181 64,787 Health and sanitation 525,000 517,112 7,888 465,954 Data services 170,220 145,512 24,708 178,519 , Resource management 61,410 58,663 2,747 52,430 General administration 396,850 299,131 97,719 370,669 Building inspector 82,806 Emergency preparedness 34,000 28,357 5,643 80,903 z Facilities department 52,760 52,728 32 26,656 Community and Regional Affairs Liaison 3,780 4,551 (771) 5,166 , Education support 22,200 28,997 (6,797) 30,415 Economic development 30,000 30,817 (817) 28,668 Switchboard/Word processing 65,860 69,592 (3,732) 61,542 ' Culture and recreation 161.500 161.460 40 146.990 Total expenditures 2.911.600 2.626.123 285.477 2.608.069 Continued 42 ' EXHIBIT A -2 (Continued KODIAK ISLAND BOROUGH GENERAL FUND STATEMENT OF REVENUES EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Excess of revenues over expenditures Operating transfers in: Special Revenue - land sales Capital Projects - Other Debt Service - other Total operating transfers from other funds Operating transfers out: Special Revenue: Education Mental Health Buildings and grounds Capital Projects: Various Borough projects State Capital grants Debt Service: School bonds Other Enterprise Funds: Sanitary services fund Total operating transfers to other funds Net operating trans- fers in (out) Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual 2.610.120 3.789.532 1.179.412 2.628.484 56,410 56,410 - 52,680 - - - 45,291 16.664 56.410 56.410 - 114.635 2,100,000 2,100,000 - 2,000,000 140,000 140,000 - 80,000 446,100 446,100 - 300,000 148,390 148,390 - - 13,350 13,350 - - - - - 300,000 - 8,597 (8,597) - 140.000 140.000 - 290.000 2.987.840 2.996.437 (8.597 2.970.000 (2.931.430 (2.940.027 (8.597 (2.855.365 $ (321,310 849.505 � 1,11,1 2.248.866 S3.0 (226,881) 2.475.747 52.2 43 EXHIBIT A -3 KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Expenditures: Borough Assembly: Personnel services Fringe benefits Support, goods & services Total Mayor's department: Personnel services Fringe benefits Support, goods & services Capital outlay Total Clerk's department: Personnel services Fringe benefits Support, goods & services Capital outlay Total Consolidation committee: Personnel Services Fringe Benefits Support, goods & services Total 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual 16,800 20,064 (3,264) 8,400 - 1,396 (1,396) 301 43.200 44.256 (1.056 29.411 60.000 65.716 (5.716 38.112 89,280 81,073 8,207 86,566 23,250 18,314 4,936 39,771 16,340 21,520 (5,180) 14,192 1.100 6.139 (5.039 129.970 127.046 2.924 140.529 99,140 97,380 1,760 78,222 33,350 29,668 3,682 19,360 65,840 62,655 3,185 50,196 4.000 3.968 32 4.765 202.330 193.671 8.659 152.543 5,000 9 4,991 - - 4 (4) - 9.000 13.295 (4.295 1.563 14.000 13.308 692 1.563 F 11 u 44 ' 45 Continued EXHIBIT A -3 (Continued t KODIAK ISLAND GENERAL FUND BOROUGH SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 i 1989 ' Variance Favorable 1988 Budget Actual (Unfavorable) Actual Finance department: Personnel services 178,310 171,870 6,440 178,188 ' Fringe benefits 55,670 47,098 8,572 39,199 Support, goods & services 31,580 30,138 1,442 29,156 Allocated to projects (20,000) (41,330) 21,330 (22,250) ' Capital outlay 710 (710 4.414 Total 245.560 208.486 37.074 228.706 ' Legal services: Support, goods & services 18,920 14,903 4,017 14,468 Costs of litigation 6,000 200 5,800 2,163 ' Legal fees 60,000 65,769 (5,769) 62,309 Court costs 800 418 382 551 ' Total 85.720 81.290 4.430 79.491 Assessing department: ' Personnel services 122,120 119,198 2,922 86,218 Overtime 24,310 Fringe benefits 32,640 31,896 744 24,451 Support, goods & services 32,450 28,095 4,355 24,502 ' Allocated to projects (9,100) (9,100) Capital outlay 500 4.168 (3.668 ' Total 178.610 174.257 4.353 159.481 Community development t department: Personnel services 161,110 156,664 4,446 145,743 Fringe benefits 53,710 33,361 20,349 38,024 Support, goods & services 112,650 101,992 10,658 40,813 Allocated to projects (17,540) (18,484) 944 (28,372) Capital outlay 2.540 7.717 (5.177 15.932 Total 312.470 281.250 31.220 212.139 45 Continued EXHIBIT A -3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual Engineering department: Personnel services 190,750 189,201 1,549 144,899 Fringe benefits 52,760 33,037 19,723 34,005 Support, goods & services 15,850 16,614 (764) 12,179 Allocated to projects (100,000) (154,673) 54,673 (131,387) Capital outlay - - - 5.091 Total 159.360 84.179 75.181 64.787 Health and sanitation: Support, goods & services 62,900 63,408 (508) 62,000 Homeless Shelter 8,400 - 8,400 - Personnel services - - - 1,954 Council on Alcoholism 56,300 56,300 - 36,800 State Health Services Villages 28,690 28,690 - 33,600 State Health Services Kana 9,560 9,560 - 11,200 Mental Health Center - - - Women's Resource Crisis 34,900 34,900 - 35,400 American Red Cross 2,000 2,000 - - Alaska Legal Services 13,850 13,850 - - Kodiak Baptist Mission 60,000 60,000 - 60,000 Small World (Day Care) 21,000 21,000 - - Special Olympics 3,000 3,000 - - Health Center Support 2,000 2,004 (4) - Senior Citizen Support 20,000 20,000 - - Kodiak Respite Care 3,000 3,000 - - Hospital and Health Services 199.400 199.400 - 225.000 Total 525.000 517.112 7.888 465.954 Continued 46 1 KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 EXHIBIT A -3 (Continued 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual Data services: Personnel services 134,340 134,493 (153) 132,549 Fringe benefits 41,000 36,043 4,957 33,217 Support, goods & services 53,790 51,511 2,279 66,438 Allocated to projects (101,200) (118,243) 17,043 (100,823) Capital outlay 42.290 41.708 582 47.138 Total 170.220 145.512 24.708 178.519 Resource management: Personnel services 42,370 40,451 1,919 38,292 Fringe benefits 15,240 14,415 825 10,975 Support, goods & services 3.800 3.797 3 3.163 Total 61.410 58.663 2.747 52.430 General administration: Support, goods & services 231,870 169,906 61,964 213,625 Audit expense 105,980 72,351 33,629 98,104 Contributions 45,000 45,000 - 54,000 Capital outlay 14.000 11.874 2.126 4.940 Total 396.850 299.131 97.719 370,669 47 Continued EXHIBIT A -3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Culture and recreation: KMXT Public Radio Historical Society Summer Basketball Crimestoppers Kodiak Isle Sport Assn. Kodiak Art Council Village Libraries Chiniak Public Library City of Kodiak Library Head Start Kodiak College Total Building inspector's department: Personnel services Fringe benefits Support, goods & services Allocated to projects Total Switchboard/Word processing: Personnel services Fringe benefits Support, goods & services Total 52,390 52,621 12,230 15,368 1.240 1.603 65.860 69.592 (231) 50,326 (3,138) 11,216 (363 (3.732 61.542 Emergency preparedness: ' Support, goods & services 6,000 698 5,302 233 Capital outlay 28.000 27.659 341 80.670 Total 34.000 28.357 5.643 80.903 ' Continued 48 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual 12,000 12,000 - 7,000 9,000 9,000 - 9,000 3,000 3,000 - - 1,000 1,000 - - 1,500 1,500 - - 12,000 12,000 - 12,000 19,720 19,680 40 19,710 3,280 3,280 - 3,280 58,000 58,000 - 58,000 8,000 8,000 - 3,000 34.000 34.000 35.000 161.500 161.460 40 146.990 - - - 55,885 - - - 29,243 - - - 3,598 - - - (5.920 82.806 52,390 52,621 12,230 15,368 1.240 1.603 65.860 69.592 (231) 50,326 (3,138) 11,216 (363 (3.732 61.542 Emergency preparedness: ' Support, goods & services 6,000 698 5,302 233 Capital outlay 28.000 27.659 341 80.670 Total 34.000 28.357 5.643 80.903 ' Continued 48 EXHIBIT A -3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 . 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual Facilities coordinator department: Personnel services 98,750 89,096 9,654 126,775 Fringe benefits 35,460 26,210 9,250 28,082 ' Support, goods & services 18,550 23,116 (4,566) 17,292 Allocated to projects (100,000) (86,644) (13,356) (145,756) Capital outlay - 950 (950 263 ' Total 52.760 52.728 32 26.656 Community and regional ' affairs liaison: Support, goods & services 3,780 5,156 (1,376) 5,166 Allocated to projects - (605 605 - ' Total 3.780 4.551 (771 5.166 Education support: School support: Audit expense 22.200 28.997 (6.797 30.415 ' Total 22.200 28.997 (6.797 30.415 Economic development: ' General services: Fringe benefits - 638 (638) - Support, goods & services 30.000 30.179 (179 28.668 ' Total 30.000 30.817 (817 28.668 Total expenditures 2.911.600 2.626.123 285.477 2.608.069 !i 49 Continued EXHIBIT A -3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 61#1 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual Operating transfers out: Special Revenue: Education 2,100,000 2,100,000 - 2,000,000 Mental Health 140,000 140,000 - 80,000 Buildings and grounds 446,100 446,100 - 300,000 Capital Projects: Various Borough projects 148,390 148,390 - - State Capital grants 13,350 13,350 - - Debt Service: School bonds - - - 300,000 Other - 8,597 8,597 - Enterprise Funds: Sanitary landfill fund 140,000 140,000 - 290,000 Total 2,987,840 2,996,437 (8,597 2,970,000 55.899 440 S5.6� S 276,880 15 , 5 61#1 SPECIAL REVENUE FUNDS These funds are used to account for revenues from specific taxes or other ear- marked revenue sources which by law are designated to finance particular functions or activities of government. FIRE AND ROAD SERVICE DISTRICTS These funds account for the activities related to service districts established by the voters within the district to provide road services and fire protection within the service area. The primary sources of revenues are property taxes and state - shared revenues directly related to road services or fire protection within the service area. MENTAL HEALTH CENTER This fund accounts for the operations of a mental health center financed by a State of Alaska contract and user fees. ENERGY FUND This fund accounts for State of Alaska and Federal grants related to the effects of coastal energy development impacts. Expenditures of these grants are for comprehensive plans, coastal sensitivity analysis, outer continental shelf impact analysis, ordinance update and planning and zoning. DAY CARE FUND This fund accounts for a State of Alaska grant to finance day care for children of low- income, employed families. EDUCATION This fund accounts for the operations of the Kodiak Island Borough School District. The School District is a component unit of the Kodiak Island Borough. LAND SALES FUND The Land Sales Fund accounts for the disposal of Borough -owned lands. The proceeds of land disposals are generally limited to management of Borough lands. BUILDING AND GROUNDS This fund accounts for the operations and maintenance of certain buildings and grounds owned by the Borough which are jointly shared with the City of Kodiak, the Kodiak Island Borough School District, the State of Alaska, the Kodiak Island Borough and certain not - for - profit community organizations. OIL SPILL CLEANUP This fund accounts for costs incurred by the Borough due to the oil spill of the Exxon Valdez. Such costs are reimbursed by the State of Alaska and Exxon. KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 ASSETS Equity in central treasury Temporary investments Other cash balances Receivables: State of Alaska Land sales contract, due within one year Exxon Accrued interest Other Allowance for doubtful receivables Due from other funds Inyentories Prepaids Land sales contracts receivable, due after one year Other Fire and Road Service Districts Fire Road Women's Monashka District Women's Bay View Area 1 Bay Bay One Bay Road S 49,462 S 12,092 S 20,666 S 2,719 S - S 1,101 10,000 290,743 S 340,205 S 12,092 S 20,666 $ 2,719 S 10,000 S 1,101 LIABILITIES AND FUND BALANCES (DEFICITS) Liabilities: Accounts payable $ 290 S 195 $ S Salaries payable 1,004 - Payroll taxes accrued and withheld - Employee benefits accrued and withheld Customer deposits - 300 Deferred and unrealized revenues - Due to other funds _ Total liabilities 1,294 495 _ Fund balances (deficits): Reserved for encumbrances Reserved for fuel inventory Unreserved: Designated for subsequent year expenditures Undesignated: Total fund balances (deficits) S 340,205 S 12A92 $ 20,666 S 2,719 $ 10,000 S 1,101 S - S 18,105 18,105 _ 338,911 11,597 20,666 2,719 (8,105 1,101 338,911 11,597 20,666 2,719 (8,105 1,101 52 EXHIBIT B-1 Federal and State Grant Programs Mental Building Totals Health and OR Spill Center Energy Day Care Education Land Sales Grounds Cleanup 1989 1988 S 62,974 S s s 103 32,993 165,456 8,092 18,964 997,717 160,129 16,712 (39,109) 2,064,267 20,580 251,196 , .2 39 ) - S 370,372 S 8,092 S 18,964 $3,362,885 S 44,212 5 81,451 S S 274,677 S 855,958 1,776,382 1,776,382 2,265,244 33,096 14,499 70,826 1,261,055 789,685 343,529 343,529 257,200 378,010 378,010 - 62,401 62,401 119,215 - 186,841 132,842 (18,252) - (57,361) (57,693) 63,168 2,418,178 2,307,656 - 271,776 230,064 - 6,130 1,471,044 1,471,044 1,978,712 239 - $3,679,316 S$ 144,619 S$ 448,836 $8,419,867 $8,899,512 $ 17,007 $ S 18,792 S 561,822 - - 668,794 678,001 6,599 104,257 3,331 8.092 70,380 23,606 8,092 18,792 2,086,585 7,338 56,659 82,952 S 8,102 S 7,600 S 184,290 S 798,098 S 289,192 - - 669,798 848,800 678,001 490,244 110,856 116,906 - 300 300 1,814,573 - 1,817,904 2,393,319 264.546 361,123 291,365 1,822,675 7,600 448,836 4,436,080 4,430,126 36,844 100,841 129,312 82,952 73,680 444,114 - 444,114 290,000 339,428 172 692,575 1,819,797 137,019 3,355,880 3,976,394 346,766 - 172 1,276,300 1,856,641 137,019 3,983,787 4,469,386 $ 370,372 $ 8,092 $ 18,964 $3,362,885 $3,679,316 $ 144,619 $ 448,836 $8,419,867 $8,899,512 53 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out 35,896 (5,447) 7,570 (18,092) 6,971 2,008 Fund balances (deficits) at beginning of year 303,015 17,044 13,096 20,811 (15,076) (907) Adjustments to reserve for fuel inventory Fund balances (deficits) at end of year S 338,911 $ 11.59 7 E$2 ,666 S 2,719 S (8,105 S 1,101 54 Fire and Road Service Districts Fire Road Women's Monashka District Women's Bay View Area 1 Bay Bay One Bay Road Revenues: Property taxes S 130,341 S 5,944 S 18,103 S 16,927 S 35,706 S 3,251 State sources 8,787 993 4,258 10,785 18,109 914 Federal sources Land sale proceeds Exxon reimbursement - - ' Licenses, permits, fees and other local revenues 6,300 6,806 10,000 - Investments and property 19.980 Total revenues 165.408 13.743 22.361 27.712 63.815 4.165 Expenditures: Planning and community development Health and sanitation Education support - - - General administration 98,271 19,190 Oil spill cleanup Capital outlay: Capital improvements ' Schools - - ' Services district maintenance - 14,791 45,804 56,844 2,157 General 27.713 - - - Total expenditures 125.984 19.190 14.791 45.804 56.844 2.157 Excess (deficiency) of revenues over expenditures 39.424 (5.447 7.570 (18.092 6.971 2.008 Operating transfers in 1,472 - - Operating transfers out (5.000 Net operating transfers (3.528 Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out 35,896 (5,447) 7,570 (18,092) 6,971 2,008 Fund balances (deficits) at beginning of year 303,015 17,044 13,096 20,811 (15,076) (907) Adjustments to reserve for fuel inventory Fund balances (deficits) at end of year S 338,911 $ 11.59 7 E$2 ,666 S 2,719 S (8,105 S 1,101 54 EXHIBIT B-2 Federal and State Grant Programs Mental Building Totals Health and OiL Spill Center Energy Day Care Education Land Sales Grounds Cleanup 1989 1988 S - S - S . S . S . S S . S 210,272 S 181,091 861,312 22,180 232,720 17,546,005 21,980 70,826 18,798,869 18,433,953 - - 1,005,261 - - - 1,005,261 788,491 - 377,586 - 377,586 588,547 - - 1,013,079 1,013,079 - 421,186 193,269 34,914 672,475 573,740 70,377 - 145,148 279.287 - 514,792 441,680 1.352,875 22,180 232,720 18,744,535 579,628 279.287 1.083,905 22,592,334 21,007,502 - 22,180 - - 6,023 - 28,203 36,148 1,369,005 - 232,949 - - - 1,601,954 1,415,210 - - 15,698,012 - 15,698,012 15,467,882 - - 616,291 733,752 690,399 _ - 1,083,905 1,083,905 - - 44,633 - 44,633 - _ 119,596 131,240 27.713 12,634 1,369,005 22,180 232,949 15,698,012 50,656 616,291 1.083,905 19,337,768 17,753,513 (16.130 - (229 3.046,523 528,972 (337,004 - 3,254,566 3,253,989 144,068 - - 2,100,000 300,000 446,100 2,991,640 2,490,539 - - (4,998,365 (1,737,710 (6,741,075 (4,594,612 144,068 (2,898,365 (1,437,710 446,100 (3,749,435 (2,104,073 127,938 (229) 148,158 (908,738) 109,096 (494,869) 1,149,916 218,828 - 401 1,118,872 2,765,379 27,923 4,469,386 3,317,955 - 9,270 9,270 1,515 S 346.766 S - S 172 S 1,276,300 S 1,856,641 S 137,019 S . S 3.9� 8�7 S 4,469,386 55 EXHIBIT B -3 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - FIRE AREA 1 STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Revenues: Property taxes State sources - shared revenue Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures - general administration: Fire chief Volunteers Fringe benefits Support costs Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 51,360 7,000 17,090 61,350 33.000 169.800 48,577 3,720 11,777 34,197 27.713 125.984 5.000 39.424 Operating transfers in - 1,472 Operating transfers (out) (5.000 (5.000 Net operating transfers (5.000 (3.528 Excess of revenues and operating transfers in over expenditures and operating transfers out L Fund balance at beginning of year Fund balance at end of year 35,896 303.015 SS 3® 2,783 49,874 3,280 3,860 5,313 16,153 27,153 49,294 5.287 7.655 43.816 126.836 34.424 36.565 1,472 - - (8.836 1.472 596 27,729 . 275.286 $ 303.015 _ 1 56 1 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual $ 126,000 $ 130,341 $ 4,341 $ 126,298 8,790 8,787 (3) 9,577 20,010 6,300 (13,710) 7,840 20.000 19.980 (20 19.686 174.800 165.408 (9.392 163.401 51,360 7,000 17,090 61,350 33.000 169.800 48,577 3,720 11,777 34,197 27.713 125.984 5.000 39.424 Operating transfers in - 1,472 Operating transfers (out) (5.000 (5.000 Net operating transfers (5.000 (3.528 Excess of revenues and operating transfers in over expenditures and operating transfers out L Fund balance at beginning of year Fund balance at end of year 35,896 303.015 SS 3® 2,783 49,874 3,280 3,860 5,313 16,153 27,153 49,294 5.287 7.655 43.816 126.836 34.424 36.565 1,472 - - (8.836 1.472 596 27,729 . 275.286 $ 303.015 _ 1 56 1 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - FIRE WOMENS'S BAY STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Revenues: Property taxes State sources - shared revenue Licenses, permits, fees and other local revenues Total revenues Expenditures - general administration: Volunteers Fringe benefits Support costs Communications Supplies and materials Community activities Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Fund balance at beginning of year Fund balance at end of year EXHIBIT B -4 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual $ 11,180 $ 5,944 1,010 993 7.200 6.806 19.390 13.743 $ (5,236) $ 5,810 (17) 1,010 (394 6.000 (5.647 12.820 800 - 2,400 - 20,350 18,770 600 420 750 - 100 - 4.600 29.600 19.190 S(10,21 (5,447) 17.044 S11,597 800 1,110 2,400 3,357 1,580 17,309 180 243 750 50 100 - 4.600 - 10.410 22.069 4.76 (9,249) 26.293 $ 57 EXHIBIT B -5 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD MONASHKA BAY STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Revenues: Property taxes State sources - shared revenue Total revenues Expenditures - capital improvements - service district maintenance: Salaries Repairs and maintenance Snow removal Road grading Support -goods and services Total expenditures Excess of revenues over expenditures Fund balance at beginning of year Fund balance at end of year 300 1989 (239) 239 2,000 - Variance 354 9,300 9,286 Favorable 1988 Bud eg t _ Actual (Unfavorable) Actual 3.840 $ 17,880 $ 18,103 $ 223 $ 17,831 4.260 4.258 (2 4.272 16.014 22.140 22.3 221 22.103 300 539 (239) 239 2,000 - 2,000 354 9,300 9,286 14 11,655 6,700 4,451 2,249 3,539 3.840 515 3.325 227 22.140 14.791 7.349 16.014 7,570 S �.5�70 6,089 13.096 566 7.007 S. lei 58 EXHIBIT B -6 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD DISTRICT 1 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Revenues: Property taxes State sources - shared revenue Total revenues Expenditures - capital improvements - service district maintenance: Salaries Repairs and maintenance Snow removal Road grading Support -goods & services Total expenditures Excess (deficiency) of revenues over expenditures Fund balance at beginning of year Fund balance at end of year 20,811 31,374 S 2,719 $ 20,811 59 1989 Variance Favorable 1988 Bud eg_t Actual (Unfavorable) Actual $ 16,375 $ 16,927 $ 552 $ 16,324 8,790 10,785 1,995 10,778 25,165 27,712 2,547 27,102 1,700 4,293 (2,593) 1,350 8,000 11,919 (3,919) 4,099 28,000 24,694 3,306 30,412 8,000 4,044 3,956 779 580 854 (274 1,025 46,280 45,804 476 37,665 $ (21,115 (18,092) $ 3,023 (10,563) 20,811 31,374 S 2,719 $ 20,811 59 EXHIBIT B -7 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD WOMEN'S BAY STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Revenues: Property taxes State sources - shared revenue Licenses, permits, fees and other local revenues Total revenues Expenditures - capital improvements - service district maintenance: Staff salaries Snow removal Contracted services Support -goods & services Total expenditures Excess (deficiency) of revenues over expenditures Fund balance at beginning of year Fund balance (deficit) at end of year 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual $ 39,600 18,110 20.000 77.710 500 28,000 29,000 1.100 58.600 S $ 35,706 $ (3,894) $ 11,638 18,109 (1) 18,087 10.000 (10.000 10.000 63.815 (13.895 39.725 1,215 (715) 490 40,235 (12,235) 39,229 15,199 13,801 33,945 195 _9 05 111 56.844 1.756 73.775 6,971 (15.076 Ste $ (�,139 (34,050) 18.974 S (� 60 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD BAY VIEW STATEMENT OF REVENUES, EXPENDITURES_, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Revenues: Property taxes State sources - shared revenue Total revenues Expenditures - capital improve- ments - service district maintenance: Staff salaries Snow removal Road grading Support -goods & services Total expenditures Excess of revenues over expenditures Fund (deficit) at beginning of year Fund balance (deficit) at end of year EXHIBIT B -8 174 1989 197 3,190 1,344 1,846 2,463 Variance (607) 998 920 32 Favorable 1988 Bud eg_t Actual (Unfavorable) Actual 2,008 $ 3,190 $ 3,251 $ 61 $ 3,190 920 914 (6 912 4,110 4,165 55 4,102 174 (174) 197 3,190 1,344 1,846 2,463 607 (607) 998 920 32 888 128 4,110 2,157 1,953 3,786 $�- 2,008 2,008 316 (907 (1,223 �� 907) 61 EXHIBIT B-9 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS STATE GRANT PROGRAMS - MENTAL HEALTH CENTER STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual Revenues: State sources: Alaska Youth Initiative Developmental Disability Program Health, Social and Community Services Program Other Licenses, permits, fees and other local revenues: Organization user fees Individual user fees Miscellaneous investments and property: Rental fees Interest Total revenues Expenditures - health and sanitation - mental health program: Personnel Travel Facility Supplies Equipment Other Bad debts Total expenditures Excess (deficiency) of revenues over expenditures Operating transfers in Operating transfers out Met operating Excess of (deficiency) revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year S 106,462 S 106,462 S - S 99,898 234,500 234,500 - 218,900 475,300 475,300 - 321,184 45,050 45,050 - 34,460 184,060 196,076 12,016 178,191 199,750 224,890 25,140 157,863 230 220 (10) 112 60,000 60,000 - 12,000 4,810 10,377 5,567 4,959 1,310,162 1,352,875 42,713 1,027,567 1,080,765 996,353 84,412 869,079 33,130 22,550 10,580 22,670 125,385 123,676 1,709 57,747 75,552 71,166 4,386 47,989 21,350 18,454 2,896 18,173 139,980 136,806 3,174 132,460 4,877 1,476,162 1,369,005 107,157 1,152,995 (166,000 (16,130 149,870 (125,428 140,000 144,068 4,068 140,000 - (7,036 140,000 144,068 4.068 132,964 SS (� 127,938 SS 153.938 7,536 218,828 536,766 211,292 ff 2 18 828 62 EXHIBIT B -10 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS - MENTAL HEALTH CENTER SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 1989 Variance Favorable Budget Actual Unfavorable) Expenditures - Alaska Youth Initiative: Personnel $ 67,520 $ 73,836 $ (6,316) Travel 2,140 1,285 855 Facility 11,300 11,915 (615) Supplies 12,522 11,216 1,306 Equipment - - - Other 12.980 9.915 3.065 106.462 108.167 (1.705 Expenditures - Developmental Disability Program (06- 9016): Personnel 186,810 159,600 27,210 Travel 1,500 1,278 222 Facility 27,790 28,569 (779) Supplies 35,130 29,031 6,099 Equipment 7,000 7,275 (275) Other 45.200 44.684 516 303.430 270.437 32.993 Expenditures - Health, Social and Community Services Program (06- 9208): Personnel 826,435 762,917 63,518 Travel 29,490 19,987 9,503 Facility 86,295 83,192 3,103 Supplies 27,900 30,919 (3,019) Equipment 14,350 11,179 3,171 Other 81.800 82.207 (407 1.066.270 990.401 75.869 Total Expenditures 51,4 76.162 $1,369,005 S 1 63 EXHIBIT B -11 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FEDERAL AND STATE GRANT PROGRAMS - ENERGY STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Revenues: State sources: Community and regional affairs grant 1988 Community and regional affairs grant 1989 Total revenues Expenditures - planning and community development: Planning and zoning Deficiency of revenues over expenditures Fund balance at beginning of year Fund balance at end of year 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual $ 180 22.000 22.180 $ 180 22.000 22.180 $ - $ 32,220 32.220 22.180 22.180 32.220 64 EXHIBIT B -12 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FEDERAL AND STATE GRANT PROGRAMS - DAY CARE STATEMENT OF REVENUES EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Revenues - State sources Expenditures - health and sanitation - day care payments Deficiency of revenues over expenditures Fund balance at beginning of year Fund balance at end of year 1989 Variance Favorable 1988 Bud eg t _ Actual (Unfavorable) Actual $ 239,330 $ 232,720 $ (6,610 $ 199,215 239,330 232,949 6,381 199,215 $ -- (229) ,5.(22 - 401 172 401 S 401 65 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS - EDUCATION STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Revenues: State sources Federal sources Licenses, permits, fees and other local revenues: Food sales Pupil activities Other local revenues Total revenues Expenditures: Education support: Regular instruction Vocational education instruction Correspondence study instruction Special education instruction Gifted and talented instruction Bilingual/bicultural instruction Pupil support School administration District administration Operation and maintenance Food services Community services Pupil activities Pupil transportation Total expenditures Excess of revenues over expenditures Operating transfers in Operating transfers out Net operating transfers 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual $17,218,418 $17,546,005 $ 327,587 $17,423,440 1,129,170 1,005,261 (123,909) 788,491 103,300 124,004 7,000 6,260 58.535 63.005 18.516.423 18.744.535 20,704 98,086 (740) 6,738 4.470 53.091 228.112 18,369.846 6,850,228 6,528,235 774,377 739,308 133,604 133,129 1,627,722 1,509,040 144,136 141,350 205,134 201,614 879,731 834,792 1,070,794 1,024,641 964,553 892,293 2,639,787 2,589,257 253,185 263,807 21,583 19,464 407,912 379,890 446.600 441,192 16.419.346 15.698.012 2.097,077 3.046.523 2,142,500 2,100,000 (4.771.107 (4.998.365 (2.628.607 (2,898.365 321,993 6,458,663 35,069 670,765 475 126,258 118,682 1,533,006 2,786 137,578 3,520 157,152 44,939 723,686 46,153 1,013,907 72,260 944,296 50,530 2,612,997 (10,622) 248,459 2,119 21,317 28,022 373,484 5.408 4 41,314 721.334 15.462.882 949.446 2,906.964 (42,500) 2,109,375 (227,258 (4,524,896 (269.758 (2.415.521 , 66 EXHIBIT B -13 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS - EDUCATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Adjustment to reserve for fuel inventory Fund balance at end of year 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual $ (5 = ) $ 148,158 1,118,872 9.270 276, 300 $$ 6 $ 491,443 625,914 1.515 $1.1 37 EXHIBIT B -14 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS LAND SALES STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Revenues: State Sources - Grants Land sale proceeds Licenses, permits, fees and other local revenues: Penalty and interest Permit fees Gravel sales Investment income Total revenues Expenditures: Planning and community development: Land management Capital improvements: General: Survey and appraisal Support costs Total expenditures Excess of revenues over expenditures Operating transfers in Operating transfers out Net operating transfers Excess (deficiency) of revenues over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year 15,500 1989 9,477 3,928 82,590 44,633 Variance 4,979 98.090 50.656 Favorable 1988 Budget Actual (Unfavorable) Actual 300,000 $ - $ 21,980 $ 21,980 $ - 308,500 377,586 69,086 588,547 1,000 492 (508) 931 10,000 10,000 - 20,000 35.000 24.422 (10.578 34.888 46,000 34,914 (11,086) 55,819 60.000 145.148 85.148 102.885 414.500 579.628 165.128 747.251 15,500 6,023 9,477 3,928 82,590 44,633 37,957 4,979 98.090 50.656 47.434 8.907 316,410 528,972 212,562 738,344 300,000 300,000 - - (1.737.710 (1.737.710 - (52.680 (1.437.710 (1.437.710 - (52.680 $(1.121.300 68 (908,738) $ 212.562 2.765.379 $ 1.856.641 685,664 , 2,079,715 $2,7�,379 ' KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS BUILDINGS AND GROUNDS STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Revenues: Investments and property: Rental Interest income Miscellaneous income Total revenues Expenditures: General administration: School buildings Borough building Apartments Refuse collection and disposal Parks operation and maintenance Total expenditures Excess (deficiency) of revenues over expenditures Operating transfers in Excess of revenues and operating transfers in over expenditures Fund balance at beginning of year Fund balance at end of year EXHIBIT B -15 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual $ 283,330 $ 278,962 $ (4,368) $ 273,876 - - - 1,069 325 325 27.205 283.330 279.287 (4.043 302.150 435,100 315,885 119,215 313,576 219,320 230,828 (11,508) 176,915 54,010 48,677 5,333 14,828 15,500 15,589 (89) 13,934 5.500 5.312 188 5.923 729.430 616.291 113.139 525.176 (446,100) (337,004) 109,096 (223,026) 446.100 446.100 - 300.000 S 109,096 SS 1 76,974 27.923 (49.051 $ 137,019 Sri 69 Expenditures: Personnel services Fringe benefits Support goods and services Capital outlay Legal fees Total expenditures Excess of revenues over expenditures Fund balance at beginning of year Fund balance at end of year 156,386 18,640 750,000 887,086 250,000 18,840 2.953 1.000.000 1.083.905 (156,386) - (18,640) - (137,086) - 231,160 - (2.953 - (83.905 - 70 EXHIBIT B -16 KODIAK ISLAND BOROUGH " OIL SPILL CLEANUP STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 1989 Variance Favorable 1988 , Budget Actual (Unfavorable) Actual s Revenues: Exxon reimbursement $ 500,000 $ 1,013,079 $ 513,079 $ - State sources - DEC grant 500.000 70.826 (429.174 - Total revenues 1.000.000 1.083.905 83.905 - Expenditures: Personnel services Fringe benefits Support goods and services Capital outlay Legal fees Total expenditures Excess of revenues over expenditures Fund balance at beginning of year Fund balance at end of year 156,386 18,640 750,000 887,086 250,000 18,840 2.953 1.000.000 1.083.905 (156,386) - (18,640) - (137,086) - 231,160 - (2.953 - (83.905 - 70 DEBT SERVICE FUND These funds were established to finance and account for the payment of interest and principal on all general obligation debt, serial and term, other than that payable exclusively from special assessments and revenue debt issued for and serviced by a governmental enterprise. Formerly called a Sinking Fund. SCHOOL BONDS DEBT SERVICE FUND This fund accounts for the accumulation of money for payment of principal, interest and fiscal agent fees related to serial bond debt incurred by the Borough to construct schools. OTHER DEBT SERVICE FUND { This fund accounts for the accumulation of money to pay the long -term portion of the Borough's vested accrued annual leave. EXHIBIT C -1 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS COMBINING BALANCE SHEET YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 ASSETS Cash and investments: Equity in central treasury Temporary cash investments Cash with fiscal agent Receivable from State of Alaska Accrued interest receivable LIABILITIES AND FUND BALANCES Other Fund balances - designated for subsequent year expenditures Totals School Bonds Other 1989 1988 $ 131,277 $ 136,480 $ 267,757 $1,117,275 4,530,522 - 4,530,522 4,473,809 648,922 - 648,922 1,445,913 448,618 - 448,618 118,108 50.217 50.217 71.084 S5.809.556 S 1� 3 55.96. ®� S7.2 $ 307 $ - $ 307 $ 785 5.809.249 136.480 5.945.729 7.225.404 $5,809,556 SS 136,480 $5.946.036 $7.226.189 72 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Revenues: investments and property - interest income Total revenues Expenditures - debt service: Principal Interest Fiscal agent fees Other Total expenditures Excess (deficiency) of revenues over expenditures Other financing Sources (uses): Proceeds of bond sales Accrued interest Bond premium Purchase of restricted escrow Underwriters discount MBIA insurance Other Total other financing sources (uses) Operating transfers in: General Fund Special Revenue Funds: Mental Health Center Education Capital Projects Fund Total operating transfers in Operating transfers out: General Fund Special Revenue Fund: Fire Service District Area 1 Mental Health Total operating transfers out Net operating transfers Excess (deficiency) of revenues, other financing sources and operating transfers in over expenditures, other financing uses and operating transfers out Fund balances at beginning of year Fund balances at end of year EXHIBIT C•2 - 7,036 4,996,378 4,996,378 4,415,521 - 90,000 4,996,378 5,004,975 4,812.557 16,664 • 1,472 Totats 4,068 4,068 School Bonds Other 1989 1988 4,999.435 4,794,729 S 305,707 S S 305,707 S 488,470 305,707 305,707 488,470 5,135,834 5,135,834 3,785,834 1,396,688 1,396,688 1,546,117 66,030 66,030 148,874 (13,735 (13,735 477 6,584,817 6.584,817 5,481,302 (6,279.110 (6,279,110 (4.992,832 10,000,000 10,000,000 94,265 94,265 20,613 20,613 (9,865,100) (9,865,100) - (134,000) (134,000) (62,000) (62,000) (53,778 (53,778 - 8,597 8,597 300,000 - 7,036 4,996,378 4,996,378 4,415,521 - 90,000 4,996,378 5,004,975 4,812.557 16,664 • 1,472 1,472 1,164 4,068 4,068 - 5,540 5.540 17,828 4.996.378 3,057 4,999.435 4,794,729 (1,282,732) 3,057 (1,279,675) (198,103) 7.091.981 $ 133,423 7,225.404 7.423,507 S 5,809,249 S 136,480 S 5,945,729 S 7,225,404 73 EXHIBIT C-3 Revenues: Investments and property - interest income Total revenues Expenditures - debt service: Principal Interest Fiscal agent fees Other Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Proceeds of bond sales Accrued interest Bond premium Purchase of restricted escrow Underwriters discount MBIA insurance Other Total other financing sources (uses) Operating transfers in: General Fund Education Special Revenue Fund Hospital Debt Service Fund Capital Projects Fund Total operating transfers Excess (deficiency) of revenues, other financing sources and operating transfers in over expenditures and other financing uses Fund balance at beginning of year Fund balance at end of year KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS SCHOOL BONDS STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Variance Favorable Budget Actual (Unfavorable) $ 207,180 $ 305,707 S 98,527 207.180 305,707 98.527 1989 5,385,840 1,542,190 158,470 43.500 7.130.000 5,135,834 1,396,688 66,030 (13.735 6,584,817 250,006 145,502 92,440 57.235 545.183 1988 Actual $ 488.470 488.470 3,785,834 1,546,117 148,874 477 5,481.302 (6.922,820 (6,279.110 643.710 (4,992,832 - 10,000,000 10,000,000 - 94,265 94,265 - - 20,613 20,613 - - (9,865,100) (9,865,100) - - (134,000) (134,000) - - (62,000) (62,000) - (53,778 (53,778 300,000 4,826,220 4,996,378 170,158 4,415,521 90.000 4.826.220 4.996.378 170.158 4,805.521 S(2,0� (1,282,732) SS 813,868 (187,311) 7,091,981 S 5,809,249 7.279,292 S 7,0� 9�1 74 CAPITAL PROJECTS FUNDS This fund was created to account for all resources used for the acquisition of designated fixed assets by a governmental unit except those financed by special assessment and enterprise funds. VARIOUS BOROUGH PROJECTS This fund accounts for a variety of capital projects not accounted for in another fund, including projects financed by the State of Alaska Municipal Aid Program. ' SCHOOL BOND IMPROVEMENTS This fund accounts for the proceeds of the Borough general obligation bonds issued for ' the construction of schools. SCHOOL EQUIPMENT AND FURNISHINGS ' This fund accounts for money transferred to the Kodiak Island Borough School District from other Capital Projects Funds for the acquisition of school equipment and furnishings. STATE CAPITAL GRANTS This fund accounts for capital grant monies received from the State of Alaska for the construction of various projects. SCHOOL MAJOR MAINTENANCE This fund accounts for money transferred from the Land Sales Fund for the major repairs and maintenance of school buildings. 11 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET JUNE 30, 1989 WITH COMPARATIVE FIGURES FOR 1988 76 School Various Equipment Borough School Bond and Projects Improvements Furnishings ASSETS Cash and investments: Equity in central treasury $ - $ 91,001 $ - Temporary cash investments 955,433 721,039 - Other cash and cash equivalents - 4,641 - Receivables: City of Kodiak - - ' Other 9,282 - State of Alaska 12,698 - - Accrued interest - 3,762 - Due from other funds - - 70,380 SS 9�.413, $ 8� 20,443 $ 7 0,380 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 809 $ 119,394 $ 15,270 Retainages payable 1,000 86,932 - Deferred revenue 185,998 - - General obligation demand bonds payable - 550,000 - Due to other funds 163,807 - - Total liabilities 351,614 756,326 15,270 Fund balances: Reserved for encumbrances 8,205 314,568 29,853 Unreserved - designated for subsequent year expenditures 617,594 - 25,257 Undesignated - (250,451 - Total fund balances 625,799 64,117 55,110 $ 997 3 1_.I20 .. S�70�380� 76 EXHIBIT D -1 State School Totals Capital Major Grants Maintenance 1989 1988 $ 65,892 $ 113,433 $ 270,326 $2,321,177 200,000 ✓ 1,052,732 2,929,204 6,129,654 - - 4,641 - - - 9,282 9,282 198,908 ✓ - 211,606 55,676 4,011 ✓ 3,875 11,648 221,610 163,807 234,187 243,481 $$ 632,6188 $1,170,040 S3,670,894 8.980,880 $ 106,514 $ - $ 241,987 $ 258,663 - - 87,932 439,323 588,781 - 774,779 1,266,532 - - 550,000 2,750,000 163,807 1,012,499 695,295 1,818,505 5,727,017 184,603 - 537,229 5,185,715 - - 642,851 1,791,106 (247,280 1,170,040 672,309 (3,722,958 (62,677 1,170,040 1,852,389 3,253,863 5632,618 1,170,040 53,670 894 58,980 880 77 KODIAK ISLAND BOROUGH I E , CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 ' { Various Borough School Bond Projects Improvements ' Revenues: a State sources $ - $ 8,918 ' Licenses, fees, permits and other local revenues - - Investments and property 14,173 153,185 Insurance proceeds - 366,904 ' Asbestos settlement - 647,480 14,173 1,176,487 ' Expenditures: Capital improvements: Schools - 4,591,916 ' General 1,418,209 - P Total expenditures 1,418,209 4,591,916 ' Excess (deficiency) of revenues over expenditures (1,404,036 (3,415,429 ' Other financing sources (uses): Demand bond principal payments 2,200,000 Operating transfers in 1,639,690 700,000 ' Operating transfers out (300,000 (350,000 Net other financing sources (uses) 1,339,690 2,550,000 , Excess (deficiency) of revenues and other financing sources over expenditures and ' other financing uses (64,346) (865,429) Fund balances at beginning of year 690,145 929,546 , Fund balances at end of year S5 L5 Ste_ L 78 , EXHIBIT D -2 School Equipment and Furnishings State School Capital Major Grants Maintenance Totals 1989 1988 $ 948,282 $ - $ 957,200 $ 1,280,557 11,083 - 11,083 5,000 42,687 84,467 294,512 656,973 - - 366,904 1,414,685 647,480 634,061 1,002,052 84,467 2,277,179 3,991,276 233,091 - - 4,825,007 7,595,506 990,464 2,408,673 1,779,220 233,091 990,464 - 7,233,680 9,374,726 (233,091 11,588 84,467 (4,956,501 (5,383,450 - - - 2,200,000 2,050,000 51,987 313,350 - 2,705,027 893,512 - (700,000 - (1,350,000 (913,803 51,987 (386,650 - 3,555, M 2,029,709 (181,104) (375,062) 84,467 (1,401,474) (3,353,741) 236,214 312,385 1,085,573 3,253,863 6,607,604 555,110 $ (�62 6777 51,170 040 $1,852,389 $ 3,253.863 79 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS YEAR ENDED JUNE 30, 1989 Total Capital Projects S27.046.408 S 1.076.900 S 10.390 $ 846.134 S28.979.832 Aoorovriations Transfers (To) From Protect Prior 1989 Protects Funds Aoorooriation School Buildings 45 -211 Hi Sch (Kod) Noise Abam't $ - $ - $ 10,000 $ - $ 10,000 45 -212 Landscaping - Port Lions - - 15,000 - 15,000 45 -214 School Drawings - as Built - - 15,000 - 15,000 45 -283 HS Handicap, Code, Roof 1,825,620 - 23,000 - 1,848,620 45 -284 Larsen Bay School 1,869,850 100,000 1,950 (115,000) 1,856,800 45 -285 Peterson Elementary 594,990 - - (130) 594,860 45 -286 East Elementary School 3,010,808 - 141,750 75,817 3,228,375 45 -287 Old Harbor School 1,846,140 60,000 (11,310) 312,040 2,206,870 45 -288 Port Lions School 2,046,140 - (88,640) 1,957,500 45 -289 Port Lions School Gym 1,921,579 - - 1,921,579 Other School Projects 44 -200 Asbestos Abatement Grant - - - 70,000 70,000 44 -253 Asbestos Removal Program - - 80,000 - 80,000 44 -202 Work of Art - Auditorium 33,090 - - - 33,090 44 -278 Landscaping 10,000 - - - 10,000 44 -341 School Site Acquisition - - - 400,000 400,000 44 -342 School Improvements - Var. - - (70,000) 90,000 20,000 44 -261 Kodiak Hi. School Lockers - - 35,000 - 35,000 44 -262 Painting - Main Elementary - - 35,000 - 35,000 Other Structures 47 -187 Hospital Construction 923,810 - - - 923,810 47 -189 Hospital Design 4 Develm't 1,000,000 - - - 1,000,000 47 -253 Asbestos Removal Project 2,815,000 - - - 2,815,000 Parks Development i Land Mgmt. 44 -254 Park Development 215,000 - - - 215,000 44 -290 Park Development (New) - 30,000 4,950 - 34,950 44 -291 City Camp Ground - 18,000 10,390 - 28,390 Road and Land Improvements 44 -201 Sergeant Creek Road 940,000 - - (185,998) 754,002 44 -205 Woman's Bay Paving - - - 185,998 185,998 44 -281 Chiniak Subdivision 700,000 - (10,230) (300,000) 389,770 44 -329 Bayside Paving - 29,000 - 5,300 34,300 44 -340 Middle Bay Paving - 450,000 10,230 130,000 590,230 47 -177 Chiniak Emergency Bldg. 100,000 - - - 100,000 47 -186 Hospital Heli -pad 250,000 - - - 250,000 47 -255 Lakeside Improvement 2,709,640 - - - 2,709,640 47 -257 Lilly Drive - Phase II 1,101,866 - (590,500) (178,866) 332,500 47 -263 Solid Waste Facility 3,135,000 - - 152,618 3,287,618 47 -265 Sharatin Road - - 590,500 - 590,500 Other - 44 -208 Smokay s Clean Up - - - 42,000 42,000 44 -242 Karluk Lake Fertilization - 60,000 - - 60,000 44 -292 Homeless Construction - 25,000 - - 25,000 44 -293 Airport Feasibility - 40,000 - - 40,000 44 -294 Reef (Shoal) Removal - 100,000 - - 100,000 44 -295 King Crab - RFP - 50,000 - - 50,000 44 -315 Bayside Fire Equipment 20,000 - - 10,000 30,000 47 -296 Benny Benson Pathway - 34,900 - 12,082 46,982 Undesignated - 44 -209 Undesignated 4,950 - (4,950) - - 45 -209 Undesignated Projects 106,750 80,000 (186,750) - - 47 -209 Undesignated Projects (133.825 - - 140.273 6.448 Total Capital Projects S27.046.408 S 1.076.900 S 10.390 $ 846.134 S28.979.832 EXHIBIT D -3 Expenditures Unencumbered Total Unexpended Current Balance Prior 1989 Expenditures Balance Encumbrances (Available) $ _ $ - $ - $ 10,000 $ - $ 10,000 - 189 189 14,811 - 14,811 _ _ - 15,000 - 15,000 393,649 1,454,971 1,848,620 - - 1,840,934 15,866 1,856,800 - - 24,463 102 24,565 570,295 - 570,295 2,727,780 500,595 3,228,375 - - 269,939 1,757,972 2,027,911 178,959 314,568 (135,609) 1,740,516 216,984 1,957,500 - - 1,276,342 645,237 1,921,579 - - - 59,052 59,052 10,948 700 10,248 - 30,494 30,494 49,506 6,205 43,301 _ _ - 33,090 - 33,090 5,015 4,985 10,000 - - - - 940 940 399,060 - 399,060 _ - - 20,000 - 20,000 - 493 493 34,507 - 34,507 - 1,511 1,511 33,489 600 32,889 741,339 134,329 875,668 48,142 95,260 (47,118) 746,006 119,222 865,228 134,772 73,715 61,057 2,736,602 - 2,736,602 78,398 - 78,398 214,183 817 215,000 - - - - 34,950 34,950 - - - 28,390 28,390 - - - 754,002 - 754,002 - - - - 185,998 185,998 - - 5,545 209,341 214,886 174,884 - 174,884 - 34,300 34,300 - - 590,068 590,068 162 - 162 0 11,623 11,623 88,377 4,753 83,624 2,189 94,573 96,762 153,238 5,910 147,328 1,971,811 570,858 2,542,669 166,971 4,967 162,004 326,606 5,894 332,500 - - - 3,287,618 - 3,287,618 - - - - 6,983 6,983 583,517 - 583,517 - 28,179 28,179 13,821 - 13,821 - 60,000 60,000 - - - - 25,000 25,000 - - - 22,290 22,290 17,710 - 17,710 - 100,000 100,000 - - - 474 474 49,526 - 49,526 - 927 927 29,073 700 28,373 - 46,982 46,982 - - 6,448 6,448 - - ' S19.070,987 S 7,000,589 S26.071,576 L 2,908,256 S 507,378 S 2,400,878 81 ENTERPRISE FUNDS These funds were established to finance and account for the acquisition, operation and maintenance of governmental facilities and services which are entirely or predominantly self- supporting by user charges. SANITARY SERVICES FUND This fund accounts for all activity of the Borough owned sanitary landfill and garbage collection utility. WATER ENTERPRISE FUND This fund accounts for all activity of the Borough owned and operated water utility. SEWER ENTERPRISE FUND This fund accounts for all activity of the Borough owned and operated sewer utility. ' HOSPITAL ENTERPRISE FUND This fund accounts for all activity of the Kodiak Island Borough Hospital. The Hospital is a component unit of the Kodiak Island Borough. The Hospital is operated on behalf of the Borough by the Lutheran Hospitals and Homes Society of America. KODIAK ISLAND BOROUGH 4 ENTERPRISE FUNDS COMBINING BALANCE SHEETS YEAR ENDED JUNE 30, 1989 ' WITH COMPARATIVE TOTALS FOR 1988 ASSETS , Totals g Sanitary Water Sewer Services Utility Utility Hospital 1989 1988 , Current assets: Equity in central treasury S 3a� 6,053 S 2,640 S S S 8,693 S 45,266 Temporary investments 1\ u 3 - 250,000 250,000 200,000 Due from other funds 16,580 - 16,580 Other cash and cash equivalents - 2,524,150 2,524,150 231,508 22,633 252,640 2,524,150 2,799,423 476,774 { Receivables: Customers and patients 11,601 29,470 52,344 2,022,470 2,115,885 1,530,061 Lutheran Hospitals and 3 Homes Society of America - - 283,141 City of Kodiak - 103,749 103,749 6,251 Third party patient payors - 27,000 27,000 178,947 State revenue sharing - - - - - 87,500 11,601 29,470 52,344 2,153,219 2,246,634 2,085,900 Less allowance for doubtful receivables (4,641 (4,641 (450,000 (459,282 (255,283 Net receivables 11,601 24,829 47,703 1,703,219 1,787,352 1,830,617 e Prepaid expenses - - 100,699 100,699 - Inventories at cost - 190,883 190,883 173,803 291,582 291,582 173,803 Total current assets 34,234 277.469 47,703 4,518,951 4,878,357 2,481,194 Restricted assets: , Equity in central treasury - - - 180,127 Temporary investments 238,191 238,191 - 476,382 Interest receivable 4,658 4,658 - 9,316 - Receivable from State of Alaska - 367,813 Total restricted assets 242,849 242,849 485,698 547,940 Borough designated investment - - - 638,658 638,658 810,397 Long-term receivable from Lutheran Hospitals and Homes Society of America - 1,846,000 y - - 638,658 638,658 2.656,397 Fixed assets, at cost: ' Unclassified utility plant in service 2,332,173 5,671,796 9,870,603 - 17,874,572 17,874,571 ' Hospital building and fixed equipment - - 4,186,825 4,186,825 4,012,091 Major movable equipment 243,970 1,689,517 1,933,487 1,634,372 2,576,143 5,671,796 9,870,603 5,876,342 23,994,884 23,521,034 Less accumulated depreciation (126,636 (536,136 (700,711 (2,322,450 (3,685,933 (3,061,592 2,449,507 5,135,660 9,169,892 3,553,892 20,308,951 20,459,442 Construction work in progress 61.185 48,422 109,607 87,897 Net fixed assets 2,449,507 5,196,845 9,218,314 3,553,892 20,418,558 20,547,339 $ 2.483 741 S 5,717,163 S 9� S 8,711,501 $26,421,271 S26,2�70 E t 84 , KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING BALANCE SHEETS YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 EXHIBIT E-1 LIABILITIES AND FUND EQUITIES Totals Sanitary Water Sewer Services Utility Utility Hospital 1989 1988 Liabilities: Payable from current assets: Accounts payable Due to other funds Customer deposits Accrued compensation other accrued liabilities S 65,828 S 22,546 S 2,240 S 38,233 S 128,847 S 52,000 - 10,525 10,525 - - 11,655 - - 11,655 7,301 5,957 - 341,185 347,142 240,451 20.975 20,975 5.967 71.785 34,201 12,765 400.393 519.144 305.719 Payable from restricted assets: Due to other funds Contracts payable Retainage payable Total restricted liabilities Total liabilities Fund equities: Contributions in aid of construction: City of Kodiak State of Alaska Federal government Kodiak Island Borough Less amortization of contributions in aid of construction Net contributions in aid of construction Retained earnings: Undesignated Total fund equities 3,028 3,027 6,055 - - - 19,995 40.651 3.028 3,027 A-nS5 60.646 71.785 37.229 15,792 400,393 525,199 366.365 - 189,166 40,000 229,166 229,166 2,412,453 5,531,694 9,679,668 - 17,623,815 17,613,583 - 200,000 2,237,104 2,437,104 2,437,104 - 1,439.928 1,439,928 1.426,166 2,412,453 5,720,860 9,919,668 3,677,032 21,730,013 21,706,019 (124.400 (536,112 (700.638 (1.361,150 (950.597 2.288,053 5,184,748 9.219.030 3,677,032 20.368,863 20.755,422 123,903 495.186 274.044 4.634.076 5,527.209 5,111.083 2.411.956 5.679.934 9.493,074 8,311.108 25.896.072 25.866,505 S 2,483J41 S 5.717,163 S 9� 5 S 8,711,501 $26.421,271 $2623 85 EXHIBIT E-2 Revenues: Water sales Sewer service charges Refuse collection Sanitary services user fees Patient revenues Installation charges Other Total revenues Operating expenses: Waste collection Personal services Purchased water and sewer treatment Contracted services Repairs and maintenance Depreciation Installation costs Professional care of patients Plant operations and household General administrative Other Total operating expenses Operating income (loss) Other income: Interest income Other, primarily State of Alaska revenue sharing Earnings (loss) before operating transfers Operating transfers in Operating transfers out Net operating transfers Net earnings (loss) Amortization of contributions KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Sanitary Water Sewer Services Utility Utility Hospital Totals 1989 1988 s - $ 182,051 S . $ - $ 182,051 $ 172,875 - - 230,147 - 230,147 216,125 503,569 - - - 503,569 - 162,207 - Retained earnings at end of year S - 162,207 449,488 - - 6,105,723 6,105,723 6,087,580 - 2,348 - - 2,348 33,014 317 17,242 3.248 186.270 207.077 103.333 666.093 201.641 233.395 6,291,993 7,393.122 7,062.415 609,171 - - - 609,171 - 223,343 40,786 36,543 - 300,672 149,729 • 111,604 170,269 - 281,873 216,890 - - - - - 487,465 - 17,292 25,633 42,925 41,463 70,544 108,157 239,647 299,331 717,679 626,269 • - 1,912 - 1,912 27,112 - - - 3,109,657 3,109,657 2,704,084 - - - 592,110 592,110 906,166 • - - 1,899,789 1,899,789 1,580,947 112.343 5,242 20.261 434,071 571.917 116.435 1.015.401 283.081 494,265 6.334,958 8.127.705 6,856,560 (349,308 (81.440 (260.870 (42,965 (734,583 205,855 1,206 26,196 10,554 242,406 133.434 1.206 26.196 10.554 375.840 (348.102 (55.244 (250.316 332,875 335,000 - - 335.000 (13,102) (55,244) (250,316) 332,875 in aid of construction 69.426 335,000 108,148 - Increase (decrease) in retained 335.000 185.000 14,213 756,889 earnings 56.324 52.904 t Retained earnings at beginning of year 67.579 442.282 Retained earnings at end of year S 123,903 $ 495,186 280,362 133,434 413,796 22,933 343,101 366.034 (320.787 571.889 335,000 290,000 - (105,000 335.000 185.000 14,213 756,889 n 224,339 401,913 358,502 - (25,977 332.875 416,126 1,115,391 300,021 4,301,201 5,111,083 3,995,692 t E 274,044 $4,634,076 $5,527,209 $5,111,083 86 1 KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Sources of working capital: Operations: Net earnings (loss) Loss on sale of equipment Depreciation which does not use working capital Working capital provided from (used by) operations State of Alaska grants Contribution from Kodiak Island Borough General Fund for purchase of equipment - Net decrease in restricted assets Total sources of working capital Uses of working capital: Acquisition of fixed assets Increase in long-term receivable Funding of Borough designated investments Net decrease in current liabilities payable from restricted assets Total uses of working capital Increase (decrease) in working capital EXHIBIT E•3 Totals Sanitary Water Sewer Services Utility Utility Hospital 1989 1988 S (7,144) S (55,244) S (250,316) S 332,875 S 20,171 S 756,889 - 15,966 15,966 - 70.544 108.157 239.647 299.331 717.679 626.269 63,400 52,913 (10,669) 648,172 753,816 1,383,158 - - 1,592 1,592 4,225,017 - - 13,762 13,762 43,315 31.121 31.121 2.017,739 2.079.981 541,117 63,400 84.034 22.044 2.679,673 2,849,151 6.192,607 141,330 14,381 15,970 433,183 604,864 4,382,255 - 728,000 - 50,263 27,295 27,296 54.591 453,639 141.330 41.676 43.266 433,183 659.455 5,614,157 S (77,930 S 42J58 5521 X 222 ) $2,246,490 $2,189,696 $ 578,450 Changes in components of working capital: Increase (decrease) in current assets: Other cash and cash equivalents S S 50,000 S - S2,292,642 52,342,642 S 431,508 Equity in central treasury (2,949) (4,217) (23,352) - (30,518) (115,573) Receivables (11,934) 15,801 2,239 (49,370) (43,264) 245,566 Inventories - 17,080 17,080 27,559 Prepaid expenses 100.699 100,699 - (14,883 61,584 (21,113 2,361,051 2,386.639 589,060 (Increase) decrease in current liabilities: Due to other funds - - 2,601 Bank overdraft - - - - 9,710 Accounts payable (65,383) (14,872) (109) 3,517 (76,847) 2,994 Customer deposits - - 3,205 Accrued liabilities 2.336 (4.354 (118.078 (120,096 (29,120 (63.047 (19.226 (109 (114.561 (196,943 (10.610 Increase (decrease) in working capital S (77,930 S 42,358 S (� 22 $2,246,490 52,189,696 5 578,450 87 EXHIBIT E -4 KODIAK ISLAND BOROUGH SANITARY SERVICES ENTERPRISE FUND BALANCE SHEET YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 ASSETS 1989 1988 Current assets: Equity in central treasury $ 22,633 $ 25,582 Customer receivables 11.601 23.536 Total current assets 34.234 49.118 Fixed assets, at cost: Unclassified plant in service 2,332,173 2,332,173 Major movable equipment 243.970 102.640 2,576,143 2,434,813 Less accumulated depreciation (126.636 (56.092 Net fixed assets 2.449.507 2.378.721 52.483741 $2.4 27.839 LIABILITIES AND FUND EQUITY Liabilities: Current liabilities: Accounts payable $ 65,828 $ 445 Accrued compensation 5.957 2.336 Total current liabilities 71.785 2.781 Fund equities: Contributions in aid of construction - State of Alaska 2,412,453 2,412,453 Less amortization of contributions in aid of construction (124.400 (54.974 2,288,053 2,357,479 Retained earnings, undesignated 123.903 67.579 52.4 52.4 88 KODIAK ISLAND BOROUGH SANITARY SERVICES ENTERPRISE FUND STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 1989 Revenues: Refuse collection Sanitary services user fees Other Total revenues Operating expenses: Waste collection Waste Disposal: Personal services Contracted services Support-goods and services Baler support costs Sanitary services Capital outlay Repairs and maintenance Depreciation Total operating expenses Operating Loss Other income (expense) Interest income Earnings (loss) before operating transfers Operating transfer Net earnings (loss) Amortization of contributions in aid of construction Increase (decrease) in retained earnings Retained earnings at beginning of year Retained earnings at end of year Variance Favorable Budget Actual (Unfavorable) S 473,600 S 503,569 S 29,969 215,000 162,207 (52,793) 317 317 688.600 666.093 (22.507 EXHIBIT E-5 1988 Actual S - 449,488 449,488 468,500 609,171 (140,671) 304,467 300,600 223,343 77,257 92,144 - - 182,998 119,500 96,431 23,069 95,246 - 5,086 (5,086) - - 10,826 (10,826) 135,000 - 135,000 - - 5,988 - 70.544 (70.544 56.092 1.023,600 1. 015,401 8,199 736.935 (335,000) (349,308) (14,308) (287,447) 1,206 1,206 (335,000) (348,102) (13,102) (287,447) 335,000 335.000 290.000 (13,102) $ (13,102 2,553 69,426 54.974 56,324 57,527 67.579 10,052 S 123,903 $ 67,579 89 EXHIBIT E -6 KODIAK ISLAND BOROUGH SANITARY SERVICES ENTERPRISE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 90 1989 1988 Sources of working capital: Operations: Net loss $ (7,144) $ 2,553 Depreciation which does not use working capital 70.544 56.092 Working capital provided by operations 63,400 58,645 State of Alaska grants - 2.412.453 Total sources of working capital 63.400 2.471.098 Uses of working capital: Acquisition of fixed assets 141.330 2.434.813 Total uses of working capital 141.330 2.434.813 Increase (decrease) in working capital S ( S_3 Changes in components of working capital: Increase (decrease) in current assets: Equity in central treasury $ (2,949) $ 25,582 Receivables (11.934 5.739 (14.883 31.321 (Increase) decrease in current liabilities: Advance from central treasury - 2,601 Accounts payable (65,383) 4,699 Accrued compensation 2.336 (2.336 $ (63.047 4.964 Increase (decrease) in working capital S ( 7� S _ 6 285 90 KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND BALANCE SHEET YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Fixed assets, at cost: Unclassified utility plant in service 5,671,796 5,671,796 Accumulated depreciation (536.136 (427.979 Net utility plant in service 5,135,660 5,243,817 Construction work in progress 61.185 82.808 Net fixed assets 5.196.845 5.326.625 55.7177.16 $5.81_6.480 92 1989 1988 ASSETS Current assets: Equity in central treasury $ 2,640 $ 6,857 Temporary investments 250.000 200.000 Customer receivables 29,470 13,669 Less allowance for doubtful receivables (4.641 (4.641 Net customer receivables 24.829 9.028 Total current assets 277.469 215.885 Restricted assets: Equity in central treasury - 90,064 Temporary investments 238,191 - Interest receivable 4,658 - Receivable from State of Alaska - 183.906 Total restricted assets 242.849 273.970 Fixed assets, at cost: Unclassified utility plant in service 5,671,796 5,671,796 Accumulated depreciation (536.136 (427.979 Net utility plant in service 5,135,660 5,243,817 Construction work in progress 61.185 82.808 Net fixed assets 5.196.845 5.326.625 55.7177.16 $5.81_6.480 92 KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND BALANCE SHEET YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 LIABILITIES AND FUND EQUITY Liabilities: Current liabilities: Payable from current assets: Accounts payable Customer deposits Total payable from current assets Payable from restricted assets: Contracts payable Retainage payable Due to other funds Total payable from restricted assets Total liabilities Fund equity: Contributions in aid of construction: City of Kodiak State of Alaska Accumulated amortization Net contributions in aid of construction Retained earnings undesignated Total fund equity 1989 $ 22,546 11.655 34.201 3.028 3.028 37.229 189,166 5.531.694 5,720,860 (536.112 5,184,748 495.186 5.679.934 55.7 EXHIBIT E -7 1988 $ 7,674 7.301 14.975 9,997 20,326 30,323 45.298 189,166 5.527.973 5,717,139 (388.239 5,328,900 442.282 5.771.182 55.8 93 EXHIBIT E -8 Revenues: Water sales Installation charges Other KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUA YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 1989 Variance Favorable Budget Actual (Unfavorable) $180,000 5,000 6,000 191,000 $182,051 2,348 17,242 201.641 S 2,051 (2,652) 11,242 10,641 Total revenues Operating expenses: Personal services Purchased water Repairs and maintenance Depreciation Installation costs Other: Rent Training Advertising and hearings Printing and binding Automotive and travel Office supplies and postage Interest Small tools Total operating expenses Operating loss Other income: Interest income Loss before operating transfer Operating transfer out Net loss Amortization of contributions in aid of construction Increase (decrease) in retained earnings Retained earnings at beginning of year Retained earnings at end of year 28,900 100,000 20,000 32,600 600 500 100 500 1,100 1,700 10.000 196.000 (5,0 00) (5.000) 515_,000 94 40,786 111,604 17,292 108,157 808 265 34 582 1,221 577 1,305 450 283,08 (81,440 26.196 (55,244 (55,244) 108,148 52.904 442.282 5495,186 (11,886) (11,604) 2,708 (75,557) (208) 235 66 (82) (121) 1,123 (1,305) 9.550 (87,081 (76,440 26,196 (50,244 S(50,244 1988 Actual $172,875 11,684 10.260 194.819 30,366 71,980 17,850 112,470 8,251 817 25 39 615 1,001 1,116 244,530 (49,711 14,172 (35,539 (52,500 (88,039) 98.729 10.690 431.592 $442,282 KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1989 Sources of working capital: Operations: Net loss Depreciation which does not use working capital Working capital provided from operations Net decrease in restricted assets Total sources of working capital Uses of working capital: Construction of plant Net decrease in current liabilities payable from restricted assets Total uses of working capital Increase in working capital Changes in components of working capital: Increase (decrease) in current assets: Equity in central treasury Temporary cash investments Customer receivables (Increase) decrease in current liabilities: Accounts payable Customer deposits Increase in working capital EXHIBIT E -9 1989 $ (55,244) 108.157 52,913 31.121 84.034 14,381 27.295 41.676 S $ (4,217) 50,000 15.801 61.584 (14,872) (4.354 19.226 $ 95 KODIAK IS LAND BOROUGH SEWER ENTERPRISE FUND BALANCE SHEET YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 AS E S Current assets: Equity in central treasury Customer receivables Less allowance for doubtful receivables Net customer receivables Total current assets Restricted assets: Equity in central treasury Temporary investments Interest receivable Receivable from State of Alaska Total restricted assets Fixed assets, at cost: Unclassified utility plant in service Accumulated depreciation Net utility plant in service Construction work in progress Net fixed assets 1989 1988 $ - $ 12,827 52,344 50,106 (4.641 (4,642 47,703 45,464 47.703 58.291 - 90,064 238,191 - 4,658 - 183,906 242.849 273,970 9,870,603 9,870,603 (700.711 (469.704 9,169,892 9,400,899 48,422 5,089 9.218.3 9.405.988 59.55066 S9.7� 38.249 96 EXHIBIT E -10 KODIAK ISLAND BOROUGH SEWER ENTERPRISE FUND BALANCE SHEET YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 LIABILITIES AND FUND EQUITY Liabilities: Current liabilities: Payable from current assets: Due to other funds Accounts payable Total payable from current assets Payable from restricted assets: Contracts payable Retainage payable Due to other funds Total payable from restricted assets Total liabilities Fund equity: Contributions in aid of construction: City of Kodiak State of Alaska Federal government Accumulated amortization Net contributions in aid of construction Retained earnings, undesignated Total fund equity 1989 $ 10,525 2.240 12.765 3.027 3.027 15.792 40,000 9,679,668 200.000 9,919,668 (700.638 9.219.030 274.044 9.493.074 $9.5� 0 1988 2.131 2.131 9,998 20,326 30.324 32.455 40,000 9,673,157 200.000 9,913,157 (507.384 9.405.773 300.021 9.705.794 � 9.73 8 249 97 EXHIBIT E -11 KODIAK ISLAND BOROUGH SEWER ENTERPRISE FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 Revenues: Sewer service charges Installation charges Other Total revenues Operating expenses: Personal services Purchased sewer treatment Repairs and maintenance Depreciation Installation costs Other: Electric Rent Training Advertising and hearings Printing and binding Automotive and travel Office supplies and postage Small tools Total operating expenses Operating loss Other income: Interest income Loss before operating transfer Operating transfer out Net loss Amortization of contributions in aid of construction Increase (decrease) in retained earnings Retained earnings at beginning of year Retained earnings at end of year 252.140 494.265 (242.125 417.280 - (260.870 (260.870 (177.372 10.554 10.554 8.761 (250.316 (250.316 (168,611) (52.500 (250,316) 250,316) (221,111) 224.339 204.799 (25.977 (16.312 300.021 316.333 274 044 300 021 1 I , 98 1 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual $ 243,940 $ 230,147 $ (13,793) $ 216,125 5,000 - (5,000) 21,330 3.200 3.248 48 2.453 252.140 233.395 (18.745 239.908 24,500 36,543 (12,043) $ 27,219 172,000 170,269 1,731 144,910 20,000 25,633 (5,633) 17,625 13,700 239,647 (225,947) 191,089 - 1,912 (1,912) 18,861 15,000 16,224 (1,224) 14,420 500 850 (350) 693 1,000 265 735 25 100 34 66 27 100 573 (473) 656 1,000 701 299 700 - 373 (373) 38 4.240 _ _ 1.241 2.999 1.017 252.140 494.265 (242.125 417.280 - (260.870 (260.870 (177.372 10.554 10.554 8.761 (250.316 (250.316 (168,611) (52.500 (250,316) 250,316) (221,111) 224.339 204.799 (25.977 (16.312 300.021 316.333 274 044 300 021 1 I , 98 1 EXHIBIT E -12 KODIAK ISLAND BOROUGH ' SEWER ENTERPRISE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1989 WITH COMPARATIVE TOTALS FOR 1988 1989 Uses of working capital: Operations: Net loss $ 250,316 Depreciation which does not use working capital (239.647 Working capital used by operations 10,669 Construction of plant 15,970 Net decrease in current liabilities payable from restricted assets 27.296 Total uses of working capital 53.935 Sources of working capital: ' State of Alaska grants 1,592 Net decrease in restricted assets 31.121 Total sources of working capital 32.713 Decrease in working capital S (21.222 Changes in components of working capital: Increase (decrease) in current assets: Equity in central treasury $ (23,352) Customer receivables 2.239 ' (Increase) decrease in current liabilities: (21.113 109 Accounts payable 'r - Customer deposits (109 � Decrease in working capital X222 � I 11 1 99 KODIAK ISLAND BOROUGH HOSPITAL ENTERPRISE FUND BALANCE SHEET YEAR ENDED DECEMBER 31, 1988 WITH COMPARATIVE TOTALS FOR 1987 ASSETS Current assets: Other cash balances Receivables: Patients Lutheran Hospitals and Homes Society of America City of Kodiak Third party State revenue sharing Less allowance for doubtful receivables Net receivables Prepaid expenses Inventories, at cost Total current assets Borough designated investments Receivable from Lutheran Hospitals and Homes Society of America Fixed assets, at cost: Land Building and fixed equipment Major movable equipment Less accumulated depreciation Net fixed assets 1988 1987 $2,524,150 $ 231,508 2,022,470 103,749 27,000 (450.000 4,227,369 100,699 190.883 4.518.951 638,658 638.658 38,551 4,148,274 1.689.517 5,876,342 (2.322.450 3.553.892 1,442,750 283,141 6,251 178,947 87,500 (246.000 1,752,589 173.803 2.157.900 810,397 1.846.000 2.656.397 8,009 4,004,082 1.531.732 5,543,823 (2.107.817 3.436.006 S8.71 $8.2LO 100 KODIAK ISLAND BOROUGH HOSPITAL ENTERPRISE FUND BALANCE SHEET YEAR ENDED DECEMBER 31, 1988 WITH COMPARATIVE TOTALS FOR 1987 LIABILITIES AND FUND EQUITY EXHIBIT E -13 1988 1987 Current liabilities: Accounts payable $ 38,233 $ 41,750 Accrued liabilities: Compensation 341,185 238,115 Other 20,975 5,967 Total current liabilities 400,393 285,832 Fund equities: Contributions in aid of construction: Federal government 2,237,104 2,237,104 Kodiak Island Borough 1,439,928 1.426.166 3,677,032 3,663,270 Retained earnings, undesignated 4,634,076 4,301,201 Total fund equities 8,311,108 7,964,471 $8.71 $8,2 101 EXHIBIT E -14 KODIAK ISLAND BOROUGH HOSPITAL ENTERPRISE FUND STATEMENT OF REVENUES, EXPENSES EQUITY AND f CHANGES IN FUND YEAR ENDED DECEMBER 31. 1988 WITH COMPARATIVE TOTALS FOR 1987 e , x 1988 1987 Revenues: Patient $6,693,120 $6,484,413 Less allowances for uncollectible accounts (587.397 (396.833 Net patient revenues 6,105,723 6,087,580 Other 186.270 90.620 6 Total revenues 6.291.993 6.178.200 Operating expenses: Depreciation 299,331 266,618 Professional care of patients 3,109,657 2,795,342 e Dietary 434,071 404,660 Plant operation and household 592,110 501,506 General administrative 1.899.789 1.489.689 Total operating expenses 6.334.958 5.457.815 Operating income (loss) (42,965) 720,385 Other income (expense): Interest income 242,406 168,101 , State of Alaska, Revenue Sharing 149,400 175,000 ! Loss on disposal of equipment (15.966 - 375.840 343.101 , Net earnings 332,875 1,063,486 Fund equity at beginning of year 7,964,471 6,857,670 ' Equity transfers from Kodiak Island Borough 13.762 43.315 Fund equity at end of year $8,331 $7.964 , 102 KODIAK ISLAND BOROUGH ' HOSPITAL ENTERPRISE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED DECEMBER 31. 1988 WITH COMPARATIVE TOTALS FOR 1987 EXHIBIT E -15 103 1988 1987 ' Sources of working capital: Operations: Net earnings $ 332,875 $1,063,486 Loss on sale of equipment 15,966 - ' Depreciation which does not require working capital 299.331 266.618 Working capital provided by operations 648,172 1,330,104 Decrease in receivables from LHHS 1,846,000 - ' Decrease in Borough designated investments 171,739 - Contribution from Kodiak Island Borough General Fund for equipment purchases 13.762 43.315 Total sources of working capital 2.679.673 1.373.419 Uses of working capital: Purchase of Borough designated investments - 50,263 Loans to Lutheran Hospitals and Homes Society of America - 728,000 Construction of building improvements ' and purchase of equipment 433.183 134.878 ' Total uses of working capital 433.183 913.141 Increase in working capital $2.2 4 ' Changes in components of working capital: Increase (decrease) in current assets: Other cash balances $2,292,642 $ 231,508 Receivables (49,370) 230,157 ' Inventories 17,080 27,559 Prepaid expenses 100.699 - 2.361.051 489.224 ' (Increase) decrease in current liabilities: Bank overdraft - 9,710 ' Accounts payable 3,517 (11,872) Accrued liabilities (118.078 (26.784 (114.561 (28.946 Increase in working capital $2,246,490 L 4 103 AGENCY FUNDS Agency Funds are used to account for assets held by a government as an agent for individuals, private organizations, other governments, and /or other funds. STUDENT ACTIVITIES FUND This fund accounts for the operations of the various Kodiak Island Borough School District student organizations. ' DEFERRED COMPENSATION FUND This fund accounts for deferred compensation and accumulated earnings thereon for participants in the Borough's IRC Section 457 Deferred Compensation Plan. EXHIBIT F -1 KODIAK ISLAND BOROUGH AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS LIABILITIES AND FUND BALANCES YEAR ENDED JUNE 30, 1989 Balance at July 1. 1988 STUDENT ACTIVITIES FUND ASSETS Cash, including time certificates of deposit $113,236 Other receivables 236 113 472 LIABILITIES Accounts payable $ 6,461 Due to student organizations 107,011 113 4.72 DEFERRED COMPENSATION FUND $230,965 ASSETS 720 ICMA investments (at market value) $383 LIABILITIES Due to participants 383.248 TOTALS - ALL AGENCY FUNDS $615,070 ASSETS $ 6,461 Cash, including time 210,089 certificates of deposit $113,236 Other receivables 236 ICMA investments 383,248 $ 496,720 LIABILITIES Accounts payable $ 6,461 Due to student organizations 107,011 Due to participants 383,248 496 720 Balance at Additions Deletions June 30, 1989 $212,153 $230,965 $ 94,424 720 236 720 212 873 231 201 95,144 $ 2,784 $ 6,461 $ 2,784 210,089 224,740 92,360 212 873 JUL 01 95 2 136 , 678 5�.� 519 926 136 678 519 926 $212,153 $230,965 $ 94,424 720 236 720 136,678 519,926 $ 349,551 $615,070 $ 2,784 $ 6,461 $ 2,784 210,089 224,740 92,360 136,678 519,926 2 349,551 JjjL 201 $615,070 106 GENERAL FIXED ASSETS ACCOUNT GROUP This is a self- balancin g group account which records fixed assets of the Borough and P School District other than those recorded in the Enterprise Funds. EXHIBIT G -1 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS GROUP STATEMENT OF GENERAL FIXED ASSETS BY SOURCE JUNE 30, 1989 General fixed assets: Land Buildings Improvements other than buildings Machinery and equipment Construction work in progress Investment in general fixed assets: Capital Projects Funds: General obligation bonds Federal grants State grants General Fund revenues Special Revenue Funds revenues Contribution from State of Alaska $ 7,469,315 58,659,261 842,139 3,232,446 6.911.287 $77.114,448 $46,267,071 649,732 15,095,294 4,167,254 458,755 10.476.342 $77.114.448 108 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS GROUP STATEMENT OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY JUNE 30, 1989 EXHIBIT G-2 109 Improvements Machinery Other Than and Total Land Buildings Buildings Equipment Staff agencies: Borough mayor s 13,007 $ S - S S 13,007 Borough clerk 26,096 26,096 Finance 66,487 66,487 Assessing 22,743 22,743 Community development 41,300 41,300 Engineering 55,160 - 55,160 Data services 296,758 296,758 Resource management 2,530 - - 2,530 Facilities 40,773 40,773 General administration 97,088 97,088 BuiLding inspections Mental health 58.633 58,633 Total staff agencies 720,575 720,575 Public safety: Emergency preparedness 94,724 - - 94,724 Fire Protection Area 1 661,275 s 423,750 237,525 Women's Bay Fire District 606.698 425.655 181.043 Total public safety 1.362.697 849.405 513,292 Schools 53,294,877 - 53,294,877 - - School equipment 1,998,579 - - 1,998,579 Teacher housing 125,715 - 125,715 - GeneraL governmental buildings 4,389,264 - 4,389,264 - Building sites 110,648 S 110,648 - - - Playgrounds 710,239 - S 710,239 Other 131.900 131.900 Total general fixed assets allocated to functions 62.844,494 110.648 58,659.261 842,139 3,232.446 Undeveloped land 7,358,667 7,358,667 - - Construction work in progress 6.911,287 - 6.911,287 Total general fixed assets $77,1 $7,4� $65.570,548 s 842.139 $3.232.446 109 EXHIBIT G -3 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS GROUP STATEMENT OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY JUNE 30, 1989 Staff agencies: Borough mayor Borough clerk Finance Assessing Community development Engineering Data services Resource management Facilities General administration Building inspections Economic development Mental health Total staff agencies Public safety: Emergency preparedness Fire Protection Area 1 Bells Flats Fire District Total public safety Schools School equipment Teacher housing General governmental buildings Building sites Playgrounds Other Total general fixed assets allocated to functions Undeveloped land Construction work in progress Total general fixed assets General Fixed General Fixed Assets at Assets at July 1. 1988 Additions Deductions June 30. 1989 $ 6,868 $ 6,139 $ - $ 13,007 18,698 7,398 - 26,096 56,145 10,342 - 66,487 18,575 4,168 - 22,743 24,438 16,862 - 41,300 54,569 591 - 55,160 274,717 22,041 - 296,758 2,530 - - 2,530 39,823 950 - 40,773 85,214 11,874 - 97,088 56.848 1,785 - 58.633 638.425 82.150 - 720.575 94,724 - - 94,724 632,491 28,784 661,275 606.698 - 606.698 1.333.913 28.784 - 1.362.697 45,449,285 7,845,592 - 53,294,877 1,778,916 280,508 (60,845) 1,998,579 125,715 - - 125,715 4,389,264 - - 4,389,264 110,648 - - 110,648 710,239 - - 710,239 131.900 131.900 54.668.305 8.237.034 (60.845 62,844.494 7,358,667 - - 7,358,667 9.763.157 4.993.722 (7,845.592 6,911.287 $71,790,129 $13,230,756 $(7,906,437 $77.114,448 110 GENERAL LONG -TERM DEBT ACCOUNT GROUP ' This is a self - balancing account group which records the Borough's unmatured general long -term debt. This debt is payable from monies presently in the various Debt Service Funds and from future general Borough revenues. The debt is backed by the full faith and credit of the Borough. EXHIBIT H -1 KODIAK ISLAND BOROUGH GENERAL LONG -TERM DEBT ACCOUNT GROUP STATEMENT OF GENERAL LONG -TERM DEBT JUNE 30, 1989 WITH COMPARATIVE FIGURES FOR 1988 Amount available and to be provided for the payment of general long -term debt: Amount available in Debt Service Funds: School serial bonds Accrued annual leave Amount to be provided: School serial bonds Environmental Protection Agency loan General obligation school bonds: 1974B Refunding 1980A Improvement 1986A Improvement 1989 Refunding Environmental Protection Agency loan Accrued annual leave 1989 1988 $ 5,809,248 $ 7,111,644 136.481 133.423 5.945.729 7.245.067 11,190,752 12,298,356 322.910 343.749 11.513.662 12.642.105 $17.459.391 $19.887.172 7,000,000 10.000.000 17,000,000 322,910 136.481 $ 1,450,000 9,960,000 8,000,000 19,410,000 343,749 133.423 $17.459.391 $19.887.172 112 SUPPLEMENTAL FINANCIAL DATA BONDED INDEBTEDNESS ' The following schedules reflect total bonded indebtedness of the Kodiak Island Borough by bond issue. Each issue outstanding is reflected by date, interest rate, inclusive ' bond numbers, and amount of principal and interest due. Total indebtedness is reflected on a summary page of all debts not fully defeased. EXHIBIT I -1 KODIAK ISLAND BOROUGH KODIAK, ALASKA SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY JUNE 30, 1989 Annual Principal and Interest Requirements* General Obl igation School Bonds Calendar Year Principal Interest Total 1989 $ 1,740,000 $ 458,213 $ 2,198,213 1990 1,575,000 1,135,985 2,710,985 1991 1,630,000 1,009,985 2,639,985 1992 1,680,000 882,105 2,562,105 1993 1,725,000 757,225 2,482,225 1994 1,780,000 629,103 2,409,103 1995 1,835,000 497,142 2,332,142 1996 1,390,000 366,198 1,756,198 1997 945,000 290,677 1,235,677 1998 1,015,000 225,945 1,240,945 1999 1,080,000 155,010 1,235,010 2000 1.155.000 80.850 1,235.850 $17,550,000 $6,488,4388 $24,038,438 * Does not include issues that have been fully defeased. ** Includes imputed interest of 8% on Variable Rate Demand Bonds, Series 1984B and 1986A. Note: This Schedule (and subsidiary Schedules 13a through 13e inclusive) indicate debt service by calendar year; other information in this report relative to debt service is on a fiscal year (July 1 through June 30) basis. 114 ' KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL OBLIGATION SCHOOL IMPROVEMENT BONDS, SERIES 1984B RETIREMENT SCHEDULE EXHIBIT I -2 This issue, dated May 1984, consisted initially of nine bonds totaling $9,500,000. ' Bonds in the amount of $8,950,000 have been retired. Bonds are retired serially in numerical order over a period of six years. Retirement date is quarterly, each as indicated below. ' This issue was marketed by and is indexed weekly by John Nuveen & Co. of Chicago. Legal opinion was rendered by bond counsel, Wohlforth & Flint of Anchorage. ' Bonds were issued to construct the Kodiak High School auditorium. Bonds are payable at the Metropolitan branch of the Seattle First National Bank, Seattle, Washington. ' Interest Principal Interest Maturity Rate Quarterly Quarterly Total ' July 1989 7.245% $550,000 $10,073 $560,073 ' These are variable rate demand bonds. Number of bonds issued and denominations will vary over the life of the issue. The original buyer was one firm and nine bonds were ' issued; one for $1,500,000 and eight for $1,000,000 each on May 3, 1984. 1 115 EXHIBIT 1-3 KODIAK ISLAND BOROUGH KODIAK, ALASKA i GENERAL OBLIGATION SCHOOL IMPROVEMENT BONDS, SERIES 1986A RETIREMENT SCHEDULE This issue, dated June 4, 1986, consisted initially of 198 bonds in the amount of $50,000 each, and one bond in the amount of $30,000, totaling $9,930,000. Bonds numbered 1 through 59 in the amount of $2,930,000 have been retired. Bonds numbered 60 through 199 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of ten years. Retirement dates are quarterly beginning on September 1, 1986 and quarterly thereafter. For information on early call of these bonds, please review the ordinance, Letter of credit, and prospectus on this issue. This issue was marketed by and is marked and indexed weekly by John Nuveen & Co. of Chicago. Legal opinion was rendered ' by bond counsel, Wohlforth & Flint of Anchorage. Bonds were issued to renovate and extend various school projects. Bonds are payable at the Metropolitan branch of the Seattle First National Bank, Seattle, Washington. , Bond Interest Numbers Principal Maturity Rate* Inclusive Amount Interest Total ' Sep 1989 Variable 60 -64 S 250,000 S 140,000 $ 390,000 Dec 1989 Variable 65 -69 250,000 135,000 385,000 Mar 1990 Variable 70 -74 250,000 130,000 380,000 ' Jun 1990 Variable 75-79 250,000 125,000 375,000 Sep 1990 Variable 80-84 250,000 120,000 370,000 Dec 1990 Variable 85-89 250,000 115,000 365,000 Mar 1991 Variable 90-94 250,000 110,000 360,000 ' Jun 1991 Variable 95 -99 250,000 105,000 355,000 Sep 1991 Variable 100 -104 250,000 100,000 350,000 Dec 1991 Variable 105 -109 250,000 95,000 345,000 Mar 1992 Variable 110 -114 250,000 90,000 340,000 Jun 1992 Variable 115 -119 250,000 85,000 335,000 , Sep 1992 Variable 120 -124 250,000 80,000 330,000 Dec 1992 Variable 125 -129 250,000 75,000 325,000 Mar 1993 Variable 130 -134 250,000 70,000 320,000 Jun 1993 Variable 135-139 250,000 65,000 315,000 , Sep 1993 Variable 140 -144 250,000 60,000 310,000 Dec 1993 Variable 145 -149 250,000 55,000 305,000 Mar 1994 Variable 150-154 250,000 50,000 300,000 Jun 1994 Variable 155-159 250,000 45,000 295,000 ' Sep 1994 Variable 160 -164 250,000 40,000 290,000 Dec 1994 Variable 165 -169 250,000 35,000 285,000 Mar 1995 Variable 170 -174 250,000 30,000 280,000 Jun 1995 Variable 175 -179 250,000 25,000 275,000 ' Sep 1995 Variable 180 -184 250,000 20,000 270,000 Dec 1995 Variable 185 -189 250,000 15,000 265,000 Mar 1996 Variable 190 -194 250,000 10,000 260,000 Jun 1996 Variable 195 -199 250.000 5.000 255,000 , $7,000,000 $2,030,000 $9.0 * Interest is at a variable rate; calculation made at 8% of the unpaid principal balance. 116 1 ' KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL OBLIGATION SCHOOL REFUNDING BONDS. SERIES 1989 ' RETIREMENT SCHEDULE EXHIBIT I.4 This issue, dated May 1, 1989, consists of 2,000 bonds in the amount of $5,000 each, totaling $10,000,000. No bonds have been retired. Bonds bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of 10 years. Retirement date is August 1 of each year beginning in 1989. Bonds maturing in 1997 and after are callable beginning in 1997 and this call privilege may be ' exercised. This issue was marketed by John Nuveen 8 Co. of Chicago. Legal opinion was rendered by bond counsel, Wohlforth, Argetsinger, Johnson I Brecht of Anchorage. Bonds were issued to refund the 1980 issue. Bonds are payable at the Security Pacific National Bank Seattle, Washington. Bond Principal Interest Interest Interest Numbers Due Due Due Year Rate Inclusive August 1 February 1 August 1 Total 1989 6.75 1 -138 S 690,000 $ 0.00 $ 173,140.00 S 863,140.00 ' 1990 8.00 139-253 575,000 322,992.50 322,992.50 1,220,985.00 1991 7.60 254.379 630,000 299,992.50 299,992.50 1,229,985.00 ' 1992 6.60 380 -515 680,000 276,052.50 276,052.50 1,232,105.00 1993 6.65 515- 660 725,000 253,612.50 253,612.50 1,232,225.00 ' 1994 6.65 661 -816 780,000 229,506.25 229,506.25 1,239,012.50 1995 6.70 817.983 835,000 203,571.25 203,571.25 1,242,142.50 1996 6.80 984 -1161 890,000 175,598.75 175,598.75 1,241,197.50 1997* 6.85 1162-1350 945,000 145,338.75 145,338.75 1,235,677.50 1998 6,90 1351-1553 1,015,000 112,972,50 112,972,50 1,240,945.00 ' 1999 6.96 1554 -1769 1,080,000 77,955.00 77,955.00 1,235,910.00 2000 7.00 1770 -2000 1.155,000 40.425,00 40.425,00 1,235,850,00 ' S10,000,000 S 2,138,017 SS 2� S 14,449.175 1 * Maturities on and after August 1, 1997 are callable at par on this and any interest date thereafter. ' 117 EXHIBIT I-5 KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL OBLIGATION SCHOOL EXTENSION AND IMPROVEMENT BONDS- SERIES 1980A RETIREMENT SCHEDULE This issue, dated August 1, 1980, consists of 2,420 bonds in the amount of $5,000 each, totaling $12,100,000. Bonds numbered 1 through 521 have been retired. Bonds numbered 522 through 2420 bear interest at the rate indicated below. Bonds are retired serially in n mericaL order over a period of 20 years. Retirement date is August 1 of each year beginning in 1982. Bonds maturing in 1990 and after wiLL be callable on August 1, 1990 as this issue has been refunded by the May 1, 1989 issue. Bonds were issued to extend and improve the school system. Bonds are payable at the Rainier Bank and Trust, Seattle, Washington. MEMO ONLY - Refunded by May 1, 1989 issue. 118 Bond Principal Interest Interest Interest Numbers Due Due Due Year Rate Inclusive August 1 February 1 August 1 Total 1989 9.00 522 -621 S 500,000 S - S 374,351 S 974,351 1990* 7.30 622 -729 540,000 351,851 351,851 1,243,702 1991 7.30 730 -846 585,000 332,141 332,141 1,249,282 1992 7.45 847- 973 630,000 310,789 310,789 1,251,578 1993 7.60 974 - 1109 680,000 287,321 287,321 1,254,642 1994 7.75 1110 - 1258 735,000 261,481 261,481 1,257,962 1995 8.00 1259 - 1577 795,000 233,000 233,000 1,261,000 1996 8.00 1578 - 1749 860,000 201,200 201,200 1,262,400 1997 8.00 1750 -1934 925,000 166,800 166,800 1,258,600 1998 8.00 1935-2134 1,000,000 129,800 129,800 1,259,600 1999 8.00 2135 -2350 1,080,000 89,800 89,800 1,259,600 2000 8.00 2351 -2420 1,165,000 46,000 46,000 1,258,200 $9,495,000 $2.410,783 $2,784,534 514,690,917 MEMO ONLY - Refunded by May 1, 1989 issue. 118 KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL OBLIGATION REFUNDING BONDS. SERIES 1974A RETIREMENT SCHEDULE EXHIBIT I-6 This issue, dated April 1, 1974, consists of 800 bonds in the amount of $5,000 each, totaling $4,000,000. Bonds numbered 1 through 548 have been retired. Bonds numbered 549 through 800 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of twenty years. Retirement date is August 1 of each year beginning in 1974. This issue was refunded by the August 1, 1974 issue and payment funds are in escrow at Central Bank of Denver. Bonds maturing in 1989 and after are callable beginning in 1989, and according to the escrow agreement, the call privilege will be exercised. Bonds were issued to refund the Borough's outstanding general obligation bonds. Bonds are payable at the Central Bank of Denver, Denver, Colorado. * Funds are in Account No. 87 -1248 with the Central Bank of Denver. Maturities of 1990 through 1992 will be called on August 1, 1989, per Section 4 of the Escrow Agreement with Central Bank of Denver, Denver, Colorado, dated October 1, 1974. MEMO ONLY - Refunded by August 1, 1974 issue. 119 Bond Principal Interest Interest Interest Numbers Due Due Due Year Rate Inclusive August 1 February 1 August 1 Total 1989* 5.55 549 -606 $ 290,000 $ S 17,729 S 307,729 1990 5.60 607 -667 305,000 27,160 27,160 359,320 1991 5.60 668 -732 325,000 10,311 10,311 345,622 1992 5.70 733 -800 340,000 9,690 9,690 359,380 $1,26 S A E $1 * Funds are in Account No. 87 -1248 with the Central Bank of Denver. Maturities of 1990 through 1992 will be called on August 1, 1989, per Section 4 of the Escrow Agreement with Central Bank of Denver, Denver, Colorado, dated October 1, 1974. MEMO ONLY - Refunded by August 1, 1974 issue. 119 STATISTICAL TABLES Statistical tables reflect social and economic data, financial trends and the ' fiscal capacity of the governmental unit. TABLE 1 KODIAK ISLAND BOROUGH ' KODIAK, ALASKA GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (a) LAST TEN FISCAL YEARS 0 (a) Includes general fund only. ' (b) Including operating transfers for this function. (c) Kodiak Island Borough is a second-class borough and does not have road powers. Specific monies are expended for local service roads and trails in the service districts. Subsequent to fiscal period 1978, these monies are administered through a separate fund. (d) The Debt Service Funds are now maintained as separate funds. Some amounts (included in other operating transfers) go to the Debt Service Funds from the General Fund. 122 1 Local 1 Service other Fiscal General Roads and Health and Debt Operating Year Government Trails (c) Sanitation (b) Education (b) Service Transfers Total 1980 S 995,585 $189,280 $1,113,882 S 84,689 S 525,603 $2,909,039 1981 1,525,087 342,696 1,298,585 102,887 (d) 519,212 3,788,467 ' 1982 1,694,923 785,644 906,447 506,125 3,893,139 1983 1,857,316 2,034 446,001 1,386,788 4,742,292 8,434,431 1984 1,588,182 709,508 1,478,912 1,185,630 4,962,232 1985 1,677,539 547,388 1,608,341 1,080,310 4 ' 1986 1,877,136 563,516 1,662,858 447,669 4,551,179 1987 2,089,508 579,930 1,901,130 553,373 5,123,941 1988 1,964,710 545,954 2,177,405 890,000 5 1989 2,208,351 517,112 2,128,997 768,100 5,622,560 ' (a) Includes general fund only. ' (b) Including operating transfers for this function. (c) Kodiak Island Borough is a second-class borough and does not have road powers. Specific monies are expended for local service roads and trails in the service districts. Subsequent to fiscal period 1978, these monies are administered through a separate fund. (d) The Debt Service Funds are now maintained as separate funds. Some amounts (included in other operating transfers) go to the Debt Service Funds from the General Fund. 122 1 KODIAK ISLAND BOROUGH KODIAK. ALASKA GENERAL REVENUES BY SOURCE (a) LAST TEN FISCAL YEARS TABLE 2 (a) Includes general fund only. (b) Largest single element of this figure is $860,121 of investment earnings in an unusual year of the market. (c) Includes a $481,269 loss on investment relating to the Lion Capital Group. 123 Licenses Inter- Charges Fiscal and governmental for Operating Year Taxes Permits Revenue Service Miscellaneous Transfers Total 1980 $2,060,290 S 7,695 S 709,253 5466,153 S $132,968 53,376,359 1981 2,281,111 24,083 1,706,477 112,120 754,961 168,140 5,046,892 1982 2,237,755 22,233 2,701,874 110,020 892,206 (b) 5,964,088 1983 1,928,259 45,444 3,086,448 118,064 472,281 83 5,650,579 1984 1,844,572 34,779 2,542,441 44,194 421,808 121,160 5,008,954 1985 1,868,049 40,386 2,365,386 25,850 454,218 15,000 4,768,889 1986 2,065,440 53,786 2,277,655 83,849 (113,025)(c) 53,660 4,421,365 1987 2,188,750 138,151 2,114,283 99,330 451,518 57,090 5,049,122 1988 2,491,065 97,959 2,291,627 100 355,802 114,635 5,351,188 1989 2,515,436 95,748 3,449,948 - 354,523 56,410 6,472,065 (a) Includes general fund only. (b) Largest single element of this figure is $860,121 of investment earnings in an unusual year of the market. (c) Includes a $481,269 loss on investment relating to the Lion Capital Group. 123 TABLE 3 KODIAK ISLAND BOROUGH ' KODIAK, ALASKA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (a) Includes $161,113 due from City of Kodiak. (b) Includes 5984,930 due from City of Kodiak. (c) Intensive collection procedures were instituted to include foreclosure proceedings, where necessary, under Alaska , Statute, Title 29. A dispute was settled between the Borough and the City and amounts due were remitted to the respective governments. Ij 124 1 Percent of Percent of Percent Delinquent Total Tax Outstanding Delinquent Fiscal Total Current Tax of Levy Tax Total Tax Collections Delinquent Taxes to Year Tax Le Collections Collected Collections Collections to Tax Levy Taxes Tax Levy 1980 $1,915,340 $1,764,316 92.1 S 48,923 $1,813,239 94.7 S 330,578 (a) 17.3 1981 2,257,590 1,496,037 66.3 41,038 1,537,075 68.1 1,051,093 (b) 46.6 1982 (c) 2,118,431 2,095,431 98.9 978,969 3,074,400 145.1 95,124 4.5 ' 1983 1,876,462 1,844,867 98.3 94,231 1,939,098 103.3 32,488 1.7 1984 1,646,752 1,617,654 98.2 31,487 1,649,141 100.1 30,099 1.8 ' 1985 1,508,003 1,492,923 99.0 10,733 1,503,656 99.7 19,366 1.3 1986 2,024,237 1,986,914 98.2 13,504 2,000,416 98.8 43,185 2.1 t 1987 2,181,410 2,176,543 99.7 12,207 2,188,750 100.3 49,235 2.2 1988 1,926,427 1,912,214 99.3 54,625 1,966,839 102.1 25,610 1.3 ' 1989 1,991,902 1,987,251 99.7 4,474 1,991,725 99.9 21,136 1.1 (a) Includes $161,113 due from City of Kodiak. (b) Includes 5984,930 due from City of Kodiak. (c) Intensive collection procedures were instituted to include foreclosure proceedings, where necessary, under Alaska , Statute, Title 29. A dispute was settled between the Borough and the City and amounts due were remitted to the respective governments. Ij 124 1 TABLE 4 ' KODIAK ISLAND BOROUGH KODIAK, ALASKA ' ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS ' Ratio of Total Assessed REAL PROPERTY PERSONAL PROPERTY TOTAL to Total Estimated Fiscal t Assessed Estimated Assessed Estimated Assessed Estimated Actual Year Value Actual Value Value Actual Value Value Actual Value Value ' 1980 5207,066,200 $207,066,200 $102,859,300 $102,859,300 5309,925,500 5309,925,500 100 1981 225,394,400 225,394,400 132,268,500 132,268,500 357,662,900 357,662,900 100 1982 187,598,046 187,598,046 149,474,150 149,474,150 337,072,196 337,072,196 100 ' 1983 216,508,832 216,508,832 67,606,123 (a) 144,886,873 284,114,955 361,395,705 78.6 1984 307,989,403 307,989,403 87,631,001 (b) 182,466,162 395,620,404 490,455,565 80.7 ' 1985 325,278,582 325,278,582 69,329,999 167,476,461 394,608,581 492,755,043 80.1 1986 354,524,678 354,524,678 52,088,100 (c) 125,607,345 406,612,778 480,132,023 84.7 ' 1987 367,360,196 367,360,196 37,499,229 90,373,141 404,859,425 457,733,337 88.4 1988 379,969,521 379,969,521 48,795,064 156,628,800 428,764,585 536,598,321 79.9 ' 1989 378,072,396 393,259,044 58,727,868 169,567,985 436,800,264 562,827,029 77.6 (a) Exempted boat full and true value for $5 and S15 fees. ' (b) Reflects exemptions of boats and inventories. (c) Exempted S5 tax for small watercraft (boats and skiffs under five ton). 125 TABLE 5 KODIAK ISLAND BOROUGH , KODIAK, ALASKA s PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS , (PER $100 OF ASSESSED VALUE) LAST TEN FISCAL YEARS a. The property tax millage for the Kodiak Island Borough has not in ' the past years been broken out to indicate the true millage that would be distributed to the various entities, in all cases. b. Contributions from the Borough to the School District for the last ' ten years is calculated to have been as follows: r ' Fiscal Road Service Districts Millage Fire Districts Year KIB City Debt 1980 5309,925,500 51,023,435 3.30 , 1981 Fiscal General of Service 1982 Monashka Service Bayview Women's Service Women's Year Fund Kodiak Funds Total Bay District 1 Road Bay District 1 Bay 3.49 1986 406,612,778 1,524,460 3.75 1987 404,859,425 2,140,149 5.29 1980 6.98 6.00 0.00 12.98 0.00 0.00 0.00 7.20 1.90 0.00 1981 6.98 2.00 0.00 8.98 0.00 1.00 0.00 0.00 1.95 0.00 1982 7.00 4.00 0.00 11.00 0.00 0.00 0.00 0.00 2.94 0.00 1983 7.00 2.00 0.00 9.00 1.50 0.00 0.00 0.50 1.50 0.50 1984 3.75 1.25 0.00 5.00 2.00 0.00 0.00 0.50 1.50 0.50 1985 3.75 2.00 0.00 5.75 2.00 0.00 0.00 0.50 1.50 0.50 1986 3.75 2.00 0.00 5.75 2.00 0.25 0.00 0.10 1.50 0.90 1987 4.51 2.00 0.00 6.51 2.00 0.25 1.00 0.50 1.50 0.50 1988 4.51 2.00 0.00 6.51 2.00 0.25 1.00 0.50 1.50 0.25 1989 4.50 2.00 0.00 6.50 2.00 0.25 1.50 1.50 1.50 0.25 a. The property tax millage for the Kodiak Island Borough has not in ' the past years been broken out to indicate the true millage that would be distributed to the various entities, in all cases. b. Contributions from the Borough to the School District for the last ' ten years is calculated to have been as follows: r i 126 1 ' Fiscal Assessed Amount of Millage Year Value Contribution Equivalent 1980 5309,925,500 51,023,435 3.30 , 1981 357,662,900 1,066,927 2.98 1982 337,072,196 676,922 2.01 1983 284,114,955 1,172,544 4.13 1984 395,620,404 1,478,912 3.74 ' 1985 394,608,581 1,377,345 3.49 1986 406,612,778 1,524,460 3.75 1987 404,859,425 2,140,149 5.29 1988 428,764,585 2,343,992 5.47 ' 1989 423,038,700 2,565,097 6.06 i 126 1 KODIAK ISLAND BOROUGH KODIAK, ALASKA TEN LARGEST TAXPAYERS YEAR ENDED JUNE 30, 1989 TABLE 6 * Taxes actually collected were less, in some cases, due to various laws such as personal property within city limits being exempt. 127 Percentage Percentage of total 1989 (Net *) of total Assessed Assessed Taxes Taxes Taxpayer Valuation Valuation Levied Levied International Seafoods of Alaska 2.42% $10,267,051 $ 61,095 3.29% Telephone Utilities of the Northland 1.97 8,344,557 39,430 2.13 Alaska Pacific Seafoods 1.86 7,866,236 41,996 2.27 Western Alaska Fisheries 1.73 7,318,998 41,591 2.24 King Crab, Inc. 1.62 6,835,891 40,034 2.16 Sea -Land Services, Inc. 1.60 6,759,513 41,571 2.24 All Alaskan Seafoods, Inc. 1.42 6,001,845 30,972 1.67 Waldos /O'Kraft & Son, Inc. (Retailers) 1.31 5,562,686 34,439 1.86 Queen Fisheries, Inc. 1.00 4,254,013 24,845 1.34 Brechan Enterprises, Inc. (Construction) .98 4.139.702 25,194 1.36 Totals 15.92% $67.350.492 $381.167 1 * Taxes actually collected were less, in some cases, due to various laws such as personal property within city limits being exempt. 127 TABLE 7 KODIAK ISLAND BOROUGH KODIAK, ALASKA RATIO OF NET GENERAL BONDED DEBT LAST TEN FISCAL YEARS (a) 1980 population is per U.S. Bureau of Census; others are estimates from the Borough Planning Department based on the "Housing Unit Method." (b) This figure was via a joint Borough /City special census. This figure was accepted and certified by the State ' demographer on November 17, 1982 and later accepted by the Federal Bureau of Census. 128 1 Ratio of Net Net Bonded Bonded Less Debt Debt to Debt Fiscal Assessed Gross Service Net Bonded Assessed per Year Population Value Bonded Debt Fund Debt Value Capita 1980 (a) 9,939 $309,925,500 S 3,725,000 $ 226,462 S 3,498,538 1.1 352 1981 10,124 357,662,900 15,610,000 1,180,818 14,429,182 4.0 1,425 1982 (b) 12,714 337,092,196 15,390,000 435,438 14,954,562 4.4 1,176 1983 13,079 284,114,955 22,275,000 435,438 21,839,562 7.7 1,670 1984 13,389 395,620,404 30,025,000 6,300,296 23,724,704 6.0 1,772 1985 13,748 394,608,581 25,815,000 7,154,308 18,660,692 4.7 1,357 1986 13,952 406,612,778 30,665,000 7,776,557 22,888,443 5.6 1,641 1987 14,127 404,859,425 25,925,000 7,279,292 18,645,708 4.6 1,320 1988 15,575 428,764,585 22,160,000 7,111,644 15,048,356 3.5 966 1989 15,575 436,800,264 17,550,000 5,310,721 12,239,279 2.8 786 (a) 1980 population is per U.S. Bureau of Census; others are estimates from the Borough Planning Department based on the "Housing Unit Method." (b) This figure was via a joint Borough /City special census. This figure was accepted and certified by the State ' demographer on November 17, 1982 and later accepted by the Federal Bureau of Census. 128 1 KODIAK ISLAND BOROUGH KODIAK. ALASKA COMPUTATION OF DIRECT AND OVERLAPPING DEBT YEAR ENDED JUNE 30, 1989 TABLE 8 (a) Gross debt outstanding less applicable amounts in the Debt Service Funds. (b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to valuation of property subject to taxation in reporting unit. (c) Under Alaska Statutes Title 29, there is no limitation on municipal debt. 129 Percentage Kodiak Applicable Island Net Debt to this Borough's Outstanding Governmental Share of Name of Governmental Unit (a) Unit (b) Debt (c) Kodiak Island Borough: General obligation bonds $12,239,279 100% $12,239,279 City of Kodiak: General obligation bonds 1,335,000 64% 854,400 Revenue bonds 5,840,000 64% 3,737,600 Total $19,414,279 $16,831,279 (a) Gross debt outstanding less applicable amounts in the Debt Service Funds. (b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to valuation of property subject to taxation in reporting unit. (c) Under Alaska Statutes Title 29, there is no limitation on municipal debt. 129 TABLE 9 Assessed value Plus exempt property Total KODIAK ISLAND BOROUGH KODIAK. ALASKA COMPUTATION OF LEGAL DEBT MARGIN JUNE 30, 1989 S 436,800,264 1,303,391,324 $1,740,191,588 The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions. Debt capacity I is ultimately determined by the marketplace. 130 1 KODIAK ISLAND BOROUGH KODIAK, ALASKA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES LAST TEN FISCAL YEARS TABLE 10 (a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of term bonds. 131 Ratio of Debt Service Total Total to General Fiscal Principal Interest Debt General Expenditures Year (a) and fees Service Expenditures (percent 1980 S 205,000 S 229,737 S 434,737 $2,909,039 14.9 1981 215,000 218,521 433,521 3,788,467 11.4 1982 220,000 1,680,912 1,900,912 3,893,139 48.8 1983 515,000 1,185,806 1,700,806 8,434,431 20.2 1984 1,750,000 1,555,900 3,305,900 4,962,232 66.6 1985 4,210,000 2,108,539 6,318,539 4,913,578 128.6 1986 5,080,000 1,727,562 6,807,562 4,551,179 149.6 1987 4,750,417 1,787,384 6,537,801 5,123,941 127.6 1988 3,785,834 1,695,468 5,481,302 5,578,069 98.3 1989 5,135,833 1,502,762 6,638,595 5,899,440 112.5 (a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of term bonds. 131 TABLE 11 KODIAK ISLAND BOROUGH KODIAK, ALASKA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Fiscal Year Population (a) School Enrollment (b) Unemployment Rate (c) 1980 9,939 2,149 9.7% 1981 10,124 (d) 2,086 10.0 1982 12,714 2,106 12.1 1983 13,079 2,189 9.7 1984 13.389 2,180 6.9 1985 13,748 2,295 9.6 1986 13,952 2,285 7.7 1987 14,127 2,329 7.4 1988 14,375 2,531 6.2 1989 15,575 2,304 3.2 (a) 1980 per U.S. Bureau of Census; other years per Borough Planning Department. (b) Kodiak Island Borough School District. (c) Department of Labor, Anchorage. (d) This figure was via a joint Borough /City special census. This figure was accepted and certified by the State demographer on November 17, 1982 and later accepted by the Federal Bureau of Census. 132 KODIAK ISLAND BOROUGH KODIAK, ALASKA SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS YEAR ENDED JUNE 30, 1989 Name of Official Jerome M. Selby See page 4 Contracted Bryce S. Weeks Earl Smith Perry L. Page Gaye Vaughan Linda Freed Barbara Templeton David Crowe Patrick Carlson Pam Delys- Baglien Robert McFarlane Title Mayor Assembly members Attorney Finance Director /Treasurer Fire Chief, Service Area One Data Processing Manager Borough Clerk Director of Planning and Community Development Cashier Engineer Assessor /Appraiser Director of Mental Health Facilities Coordinator Annual Salary $70,260 2,400 60,390 52,760 47,000 47,280 63,890 17,320 64,170 42,180 69,590 47,120 TABLE 12 Amount of Surety Bond (1) (2) (2) $1,000,000 50,000 (1) By ordinance in 1984 the Kodiak Island Borough Assembly elected to decrease the amount of bond payments and to self - insure except for the treasurer and cashier. These positions are bonded at $1,000,000 and $50,000, respectively. (2) Also covered by elected officials' errors and omission policy of $1,000,000. 133 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Source: 1. From local bankers * Estimated actual value TABLE 13 PROPERTY VALUE * Commercial S 77,248,643 77,980,241 86,107,893 107,487,339 104,233,851 116,411,447 115,574,577 114,409,875 123,053,031 128,202,254 Residential S 103,559,568 109,408,625 129,872,475 199,913,042 220,001,411 236,302,401 258,311,716 252,950,321 255,417,891 266,409,021 Nontaxable S 51,735,973 51,972,410 208,695,345 245,623,546 739,960,807 1,053,965,717 1,127,834,040 1,134,524,305 1,159,131,464 1,177,364,559 135 CONSTRUCTION Commercial Residential Deposits in Fiscal No. of No. of Local Year Units Value Units Value Banks (1) 1980 20 S 354,538 32 S 1,691,266 S 12,159,684 1981 40 331,941 55 2,163,650 65,921,937 1982 53 826,596 71 3,208,175 71,801,883 1983 77 7,708,474 136 10,631,463 54,032,065 1984 63 2,965,496 74 5,495,636 59,010,831 1985 62 10,316,833 99 7,928,241 61,598,752 1986 54 3,012,970 118 10,563,802 64,420,672 1987 35 4,256,169 134 5,313,110 78,402,810 1988 42 549,382 91 4,314,003 72,068,409 1989 22 1,174,346 131 6,421,773 93,830,000 Source: 1. From local bankers * Estimated actual value TABLE 13 PROPERTY VALUE * Commercial S 77,248,643 77,980,241 86,107,893 107,487,339 104,233,851 116,411,447 115,574,577 114,409,875 123,053,031 128,202,254 Residential S 103,559,568 109,408,625 129,872,475 199,913,042 220,001,411 236,302,401 258,311,716 252,950,321 255,417,891 266,409,021 Nontaxable S 51,735,973 51,972,410 208,695,345 245,623,546 739,960,807 1,053,965,717 1,127,834,040 1,134,524,305 1,159,131,464 1,177,364,559 135 TABLE 14 KODIAK ISLAND BOROUGH KODIAK, ALASKA MISCELLANEOUS STATISTICAL DATA YEARS ENDED JUNE 30, 1980 THROUGH 1989 Date of incorporation - September 30, 1963, Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended, Form of Government - Mayor /Assembly. Area - square miles Miles of improved street Miles of sanitary sewers Number of water taps Number of sanitary sewer taps Building permits: Permits issued Value of buildings (thousands) Fire protection: Number of fire stations Number of employees Police protection - none Recreation: Parks - number of acres Facilities: Number of playgrounds Number of swimming pools Education: Number of schools: Elementary Junior high /middle Senior high /middle Vocational technology Number of support personnel (b) Number of teachers Number of students Number of municipal employees Elections: Number of registered voters Number voting in last election Percent of registered voters 1980 1981 1982 1983 4,900 4,900 4,900 4,900 16.48 16.48 16.48 16.48 309 170 52 95 124 213 2,045.8 2,495.5 4,034.7 18,339.9 1,500 2,230 2,440 3,277 4 1 1 1 1 11 11 10 10 4 4 4 4 6 6 6 6 1 1 1 1 181 187 178 179 150 150 150 150 2,149 2,086 2,106 2,189 32 37 39 46 5,123 5,198 5,883 5,115 1,595 1,613 1,619 1,720 31.1 31.0 27.5 33.6 (a) Prior years include lands designated recreational; 1986 and after represents actual acres of parks. (b) By annexation, effective March 4, 1989 the Borough has grown some additional 12,830 square miles. Total Borough is now 22,395 square miles with a land mass of 7,130 square miles. (c) All non-teaching employees. 136 TABLE 14 1984 1985 1986 1987 1988 1989 4,900 4,900 4,900 4,900 4,900 7,130 (b) 16.48 17.29 19.53 20.3 21.5 21.5 3.7 4.2 9.63 15.49 16 16 309 309 410 659 707 748 170 170 327 619 666 727 137 161 172 169 133 153 8,416.1 17,858.0 12,196.8 9,570.0 4,863.4 7,596.1 2 2 2 2 2 2 1 1 1 1 1 1 4,099 3,414 220(a) 222 223 223 5 5 14 15 15 15 1 1 1 1 1 1 10 10 10 10 10 11 4 4 4 4 4 4 7 7 7 7 7 7 1 1 1 1 1 1 174 158 159 152 167 172 156 157 154 148 169 167 2,180 2,295 2,285 2,329 2,351 2,304 49 46 49 53 57 66 5,200 5,603 6,463 6,559 5,427 6,150 2,079 3,075 2,356 2,094 2,507 1,459 44.0 46.6 36.4 31.9 46.2 23.7 137