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CAFR FY19901 1 1 1 re KODIAK ISLAND BOROUGH Kodiak, Alaska Comprehensive Annual Financial Report For Year Ended June 30, 1990 Prepared By: Department of Finance Bryce S. Weeks Finance Director Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1990 TABLE OF CONTENTS INTRODUCTORY SECTION EXHIBIT PAGE ELECTED OFFICIALS (PHOTOGRAPHS) v BOROUGH OFFICIALS vi BOARDS AND COMMITTEES viii MAP OF KODIAK ISLAND BOROUGH ix GFOA CERTIFICATE OF ACHIEVEMENT x ORGANIZATIONAL CHART xi LETTER OF TRANSMITTAL xii FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT 1 COMBINED FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups 1 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 2 6 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund, Special Revenue Funds and Debt Service Funds 3 8 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Type - Enterprise Fund 4 10 Combined Statement of Cash Flows Proprietary Fund Type - Enterprise Fund 5 11 Notes to Combined Financial Statements 13 COMBINING, FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS GENERAL FUND: Balance Sheet A -1 42 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual A -2 43 Schedule of Expenditures and Transfers - Budget and Actual A -3 46 i Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1990 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 of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Budget and Actual: Fire and Road Service Districts: Fire: Area 1 B -3 56 Women's Bay B -4 57 Road: Monashka Bay B -5 58 District 1 B -6 59 Women's Bay B -7 60 Bay View B -8 61 Federal and State Grant Programs: Mental Health Center B -9 62 Mental Health Center - Schedule of Expenditures B -10 63 Coastal Management Program B -11 64 Day Care B -12 65 Education B -13 66 Land Sales B -15 67 Building and Grounds B -14 68 Oil Spill Cleanup B -16 69 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 Other C -4 75 CAPITAL PROJECTS FUNDS: Combining Balance Sheet D -1 78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) D -2 80 Schedule of Capital Projects D -3 82 ii Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1990 ' TABLE OF CONTENTS (Continued) ENTERPRISE FUNDS: Combining Balance Sheet Combining Statement of Revenues, Expenses, and Changes in Retained Earnings Combining Statement of Cash Flows Sanitary Services: Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual Statement of Cash Flows Water: Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual Statement of Cash Flows Sewer: Balance Sheet Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual 1 Statement of Cash Flows Hospital: Balance Sheet Statement of Revenues, Expenses and Changes in Fund Equity Statement of Cash Flows AGENCY FUNDS: Combining Statement of Changes in Assets, Liabilities and Fund Balances GENERAL FIXED ASSETS ACCOUNT GROUP: Statement of General Fixed Assets by Source Statement of General Fixed Assets by Function and Activity Statement of Changes in General Fixed Assets by Function and Activity GENERAL LONG -TERM DEBT ACCOUNT GROUP: Statement of General Long -Term Debt iii EXHIBIT PAGE E -1 86 E -2 88 E -3 89 E -4 90 E -5 91 E -6 92 E -7 94 E -8 96 E -9 97 E -10 98 E -11 100 E -12 101 E -13 102 E -14 104 E -15 105 F -1 108 G -1 110 G -2 111 G -3 112 H -1 114 Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1990 TABLE OF CONTENTS (Continued) EXHIBIT PAGE SUPPLEMENTAL FINANCIAL DATA: Summary of Debt Service Requirements to Maturity I -1 116 General Obligation School Improvement Bonds, Series 1986A Retirement Schedule I -2 117 General Obligation School Refunding Bonds, Series 1989 Retirement Schedule I -3 118 General Obligation School Extension and Improvement Bonds, Series 1980a Retirement Schedule I -4 119 Asbestos Removal Loan Payable I -5 120 STATISTICAL SECTION iv 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 Property Value, Construction and Bank Deposits - Last Ten Fiscal Years 13 135 Miscellaneous Statistical Data - Years Ended June 30, 1981 through June 30, 1990 14 136 iv SECTION I INTRODUCTORY SECTION Annual Report • Kodiak Island Borough, Alaska - ASSEMBLY MEMBERS- No Picture Available GARY L. STEVENS At Large, 1992 To the Honorable Mayor and Members of the Kodiak Island Borough Assembly: In accordance with the provisions of the Kodiak Island Borough Code, there is presented herewith the comprehensive Annual Financial Report for the year ended June 30, 1990, and the related statements and statistical tables. Respectfully submitted, ; e y(e. Weeks, Direct r of Finance TOM MERRIMAN At Large, 1990 ALAN AUSTERMAN At Large, 1991 Deputy Presiding Officer JEROME SELBY Mayor of Kodiak Island Borough, 1992 MARY A. MONROE At Large, 1992 JACK L. McFARLAND At Large, 1990 LORNE (LONNIE) WHITE Presiding Officer of Assembly, 1990 BOB SHUTTLESWORTH At Large, 1990 BOROUGH OFFICIALS KODIAK ISLAND BOROUGH YEAR ENDED JUNE 30, 1990 BOROUGH ASSEMBLY Alan Austerman 1 91 (Deputy Presiding Officer) Mary Monroe '92, Tom Merriman 1 90 Robert Shuttlesworth '91 Gary L. Stevens '92 Jack L. McFarland '90 (Presiding Officer) Lorne "Lonnie" White '90 BOROUGH MAYOR Jerome M. Selby '92 Raymond Camardella . . . . . . . . . . . Patrick S. Carlson . . . . . . . . . . . Charles E. "Bud" Cassidy . . . . . . . Pamela Delys- Baglien . . . . . . . . . Linda L. Freed . . . . . . . . . . . . Jamin, Ebell, Bolger, Gentry . . . . . PerryL. Page . . . . . . . . . . . . . John D. Salness . . . . . . . . . . . . Karleton G. Short . . . . . . . . . . . Earl A. Smith . . . . . . . . . . . . . Gaye J. Vaughan, CMC . . . . . . . . . Bryce S. Weeks . . . . . . . . . . . . MaryAnn Weideman. . . . . . . . . . . John Witteveen . . . . . . . . . . . . . .Facilities /Engineering Coordinator . . . . . . . . .Assessor /Appraiser . . . . . Resource Management Officer . . . . . . . . Mental Health Director . . . . . . . . . Planning Director . (Contracted Firm) Borough Attorney . . . . . . . Data Processing Manager . . . . . . . . Hospital Administrator . . . . . . . . . . . . . Accountant . . . . . . . . . . . Fire Chief . . . . . . . . . . Borough Clerk . . . . . . Finance Director /Treasurer Purchasing Agent /Personnel Officer . . . Superintendent, School District vi t KODIAK ISLAND BOROUGH 1 1 Ll KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1990 School Board (5 Suzanne Hancock Dave Herrnsteen Alice Knowles Cheryl McNeil * Bill Oliver Hospital Advisory Board (7 Ben Ardinger Dr. Jon Hlavinka Gretchen Saupe * Betty Springhill Wayne Stevens Jeannie Volker Vacant (1) Citizen Board of Eaualization (5 Parks and Recreation Committee (12 vii Bu ilding Code Board of ADDeals (Architectural Review Board) (9 * Bill Beatty Ron Chase Cliff Ford Harold Hannon Robin Heinrichs Brian Parsons Bob Shuttlesworth James Wheeler Susan Workman Personnel Advisory Board (5 Pat Borger Joanne Demke Mary McFarland Letitia Raub * Walter Sapp L. Ann Barker Jim Carmichael Vickie Case * Andi Cristaldi Tom Peterson Bill Roberts, Alternate Forrest Blau Dave Caylor Ian Fulp Jon Hartt Jeri Jensen Alice Knowles Bill McClain Tom Merriman * David Odell Elizabeth Odell Tom Watson Gloria Wiechmann Mental Health Center Advisory Board (9) 1 Josefina Barber Frank Caprio, Dr. Frances Cater * Maureen Eberhardt Vickie Hester Mark Houglum Mary Monore Linda Mullan Karen Perkins Planning and Zoning Commission (7) Jon R. Aspgren Bruce Barrett Wayne Coleman Jon Hartt * Robin Heinrichs Tom Hendel Jody Hodgins Citizen Board of Eaualization (5 Parks and Recreation Committee (12 vii Bu ilding Code Board of ADDeals (Architectural Review Board) (9 * Bill Beatty Ron Chase Cliff Ford Harold Hannon Robin Heinrichs Brian Parsons Bob Shuttlesworth James Wheeler Susan Workman Personnel Advisory Board (5 Pat Borger Joanne Demke Mary McFarland Letitia Raub * Walter Sapp L. Ann Barker Jim Carmichael Vickie Case * Andi Cristaldi Tom Peterson Bill Roberts, Alternate Forrest Blau Dave Caylor Ian Fulp Jon Hartt Jeri Jensen Alice Knowles Bill McClain Tom Merriman * David Odell Elizabeth Odell Tom Watson Gloria Wiechmann Data Processine Steerine Committee (7 Suzanne Hancock Jack McFarland Perry Page * Jerome Selby Bryce Weeks John Witteveen Jocelyn Zwiefelhofer Fire Protection Area #1 Advisory Board (5) Scott Arndt Vernon Berns Charles Lorenson * John Shank Bill Swearingin Bav View Road Service District Advisory Board (5) Dawn Black Randy Chase * Ron Chase Dave Kubiak Reed Oswalt Monashka Bav Road Service District Advisory Board (5) Cathy Cordry Don Fox Dan Ogg * Bill Swearingin Joel Wattum Emereencv Services Council (5 Joseph Blackett, Captain USCG Bob Brodie Gordon Gould * Jerome Selby Lorne White * Indicates chair Service District No. 1 Advisory Board (7) Scott Arndt Jim Berg Vernon Berns Okey Chandler Jim Fisk * Tony Perez Earl Smith, Jr. Women's Bav Service District Advisory Board (7) * Wayne Berry Andy Edgerly Ed Gondek Carl Hayes Charles Madsen Vacant (2) Kodiak Island Transportation Stud Steering Committee (KITS) (5) Alan Austerman Bob Brodie * Gordon Gould Lou Iani Jerome Selby Woodland Acres Street Light Service District Advisory Board (3 Bob Hatcher Barbara Heinrichs * Sharon Nault viii ARCTIC OCEAN v P BARROW PRUDNOE BAY 0 1 8 a' n` I KODIAK ISLAND BOROUGH _ KOTZEBUE f_Q _ ARCTIC CIRCLE ..�� ' NOME Q� NORTON SOUND FAIRBANKS ALASKA a BETHEL ' DILLINGHAM BRISTOL BAY ANCHORAGE 1 VA A I GULF OF ALASKA KODIAK a� ISLAND Yf(v CANADA 1100 NORTH PACIFIC OCEAN 6�;bo�, 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, 1989 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. -A� President C�Lt epo;x Executive Director x M M M M w M M M M M M r M M r r r M M Borough Assembly ( Alec ted ) rILrIC TO RATE 3fospital Planning & Citizens Advisory Advisory Board Zoning Comm Boards /Commission (Appointed by (Appointe (Appointed by Assembl ) Assembl Assembly) Personnel Board Architectural Review ffospital Borough 71 Parks and Recreation Administrator Attorney Board of Equalization Tlental ffeafth Center 34ospUaL Borough Economic Development Staff Clerk. OCS Advisory Council Building Code Board of Appeals XITS Committee nayor M ezted) Service District Advisory Boards ( Dlec ted ) School Board (tlec ted ) Monashka Bay Road Service District Womens Bay Road Service /Fire District Service District No.1 -Road, Water, Sewer Fire District No.I - Bayview Woodland Acres Street Lighting District SuperLntendi of Schools School Staff General Community Data T1.ental Building Develo ment Engineering finance Services Assessing Inspector Ad is p Department Department Department ffealth p tration Department Department Center Kodiak IslandBorough 710 MILL BAY ROAD KODIAK, ALASKA 99615 -6340 PHONE (907) 486 -5736 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, 1990 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 report of the independent auditor's, 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. 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 on the Alaska Peninsula across the Shelikof Strait from Kodiak Island. The Shelikof Strait is only 20 miles wide in places. The Borough encompasses 7,130 square miles, or slightly smaller than the State of Massachusetts. xii September 21, 1990 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 Codification of Governmental Accounting and Financial Reporting Standards Section 2100, "Defining the Reporting Entity ". Based on these criteria, the various funds and account groups (being all the funds and account groups of the Borough) shown in the Table of Contents are included in this report. II. Economic Condition and Outlook A. Summary of local economy After the Exxon Oil Spill of 1989 Kodiak returned to a fishing economy in 1990. Although some oil spill cleanup was accomplished in 1990, the magnitude was of a much lower level than it was in 1989. There were no closures of salmon fishing due to the oil spill in 1990. In 1989 practically the whole salmon fishery was closed. B. Data regarding major industries affecting the local economy The Kodiak economy is mainly driven by commercial fishing and 1990 was hot and cold at the same time. The 1990 sockeye "Red" salmon catch was 5.3 million fish, breaking the all time record of 4.8 million set in 1901. The Pink salmon return did not materialize, however. A return of 15.9 million fish with a harvest of 11.8 million was forecast for 1990 but only 12.9 million returned with a harvest of 5.9 million. Red salmon typically sell for 5 to 10 times the amount of pink salmon, so the increase in Reds more than makes up for the decrease in Pinks. The ex- vessel value of the salmon catch this year was 52.01 million dollars compared to a ten year average of 37.6 million dollars. The trend in Ground fish has been an increasing catch with a declining value. The ten year average is 134 million pounds with a value of 100 million dollars, in 1989 the catch was 208 million pounds with a value of 98 million dollars. The shellfish (crab) industry is still down with a catch of 31.8 million dollars in 1989 compared to 47.5 million dollars in 1980. C. Future economic outlook ' The Assembly of the Kodiak Island Borough has again adopted a balanced budget for fiscal year 1991. 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 six years (see page xvi). The FY -91 budget contains another draw down of $285,100. 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. xiii Starting in 1981 and continuing, our efforts have been to promptly collect those taxes and other receivables due to the Borough, 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. 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 other capital grants 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 D -3 (pg. 80) 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 I 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 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 and engineering work has been done. The final plans and possible methods of funding are currently "on hold ". 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 with the product in the most desirable condition for the consumer. 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 xiv administration. The Borough provides for education through the Kodiak Island Borough ' School District and has contracted with Lutheran Health Systems Management Company to operate the Borough Hospital. The Borough is responsible for operating the sanitary landfill and provides water and sewer services outside the Kodiak city limits. The Borough has oversight responsibility for four road service districts and two fire protection districts, and a street light service district. ' 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. 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 the complete control over any 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 xv Function General government Public safety Public works Health and sanitation Education Culture and recreation Conservation and development Operating transfers Increase (Decrease) Amount Percent Over 1989 (Thousands of Total (Thousands $ 1,826.5 31.4 % $ 432.4 74.7 1.3 The amount of revenues from various sources and the increase or decrease over the 3.9 last year are shown in the following tabulation: 6.3 (153.8) 61.5 1.1 32.5 180.5 Increase ' 349.8 6.0 68.5 (Decrease) 46.9 Revenue Source and Other Financing Sources Amount Percent (Thousands) of Total Over 1989 (Thousands) , Property taxes $ 2,640.4 56.3 8 $ 125.0 Licenses and permits 57.7 1.2 18.5 , Intergovernmental revenue 1,316.2 28.1 (2,133.7) Charges for services 27.3 0.6 27.6 Miscellaneous 575.7 12.3 164.7 Operating transfers 68.8 1.5 12.4 ' 4,686.1 100.0 $ $ ($ (1,78 2. Summary schedule of expenditures ' Changes in levels of expenditures for major General Fund functions of the Borough 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 1989 (Thousands of Total (Thousands $ 1,826.5 31.4 % $ 432.4 74.7 1.3 (13.6) 224.9 3.9 51.0 363.3 6.3 (153.8) 61.5 1.1 32.5 180.5 3.1 19.1 349.8 6.0 68.5 2.722.1 46.9 (274.3 5,803.3 10_ % 161.8 3. Discussion of significant changes in revenues and expenditures Revenues for general government totaled $4,617,278 and operating transfers were $68,790. This was a decrease of $1,793,377 and an increase of $12,380, respectively over 1989. General property taxes produced 56.3% of general revenues in 1990 compared with 38.9% in 1989. 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. A change in budgeting for fish tax occurred in fiscal year 1990 and subsequent years to recognize the tax in the year received. No revenue for this item was recognized in fiscal year 1990. xvi 4. Effect of revenue limitations Capital improvement grants from the State of Alaska have played a major role in the 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 business for fiscal years ended June 30: 1982 $ 5,478,183 1983 2,684,707 1984 2,742,239 1985 2,661,914 1986 2,532,100 1987 2,475,747 1988 2,248,866 1989 3,098,371 1990 1,981,147 C. Proprietary operations The Kodiak Island Hospital is contracted for management with the Lutheran Health Systems Management Company. 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 three fiscal periods, as follows: Water Sewer 1988 $ 49,711 $ 177,372 1989 81,440 260,870 1990 95,800 158,587 Landfill $ 287,447 349,308 95,231 Total $ 514,530 691,618 349,618 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 or implementation of certain economies must be considered. xvii 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 the 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 Summary of debt principal outstanding at fiscal year end was: General obligation, school 1986 General obligation refunding 1989 Environmental Protection Agency loan 2. Review of current year's debt issuances No new debt obligation was incurred during the past year. $ 6,000,000 9,310,000 302.083 $15.612.083 xviii 3. Information on advance refundings ' The advance refunding of the GO 1980 school bond issue in 1989 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. ' 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 were not the exception. The required forms were not prepared and submitted promptly for ' drawdowns on State grants and other receivables were handled in a like manner. All accounts of the Borough are now relatively current and proper monitoring procedures are in place for timely receipt and deposit of any amounts due. ' 1. Investment policies The Borough treasurer operates as the central treasurer for all Borough monies. This, in effect, means the Borough, School District, Hospital and Mental Health Center monies. A cash pool concept is maintained whereas all funds are self - balancing unique entities and each fund has its own cash account which on ' occasion may show a "book overdraft" while others have an excess of cash. In this manner, the Borough is able to fully invest all idle funds without creating a "bank overdraft." ' All funds are deposited daily and 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 xix 4. Discussion of debt limitation The Statutes of the State of Alaska and the Code of the Kodiak Island Borough do obligation bonds are rated as follows: not establish a legal debt margin. Our debt capacity is determined by a vote of Standard the electorate and ultimately by the marketplace when debt is attempted to be placed. ' 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 were not the exception. The required forms were not prepared and submitted promptly for ' drawdowns on State grants and other receivables were handled in a like manner. All accounts of the Borough are now relatively current and proper monitoring procedures are in place for timely receipt and deposit of any amounts due. ' 1. Investment policies The Borough treasurer operates as the central treasurer for all Borough monies. This, in effect, means the Borough, School District, Hospital and Mental Health Center monies. A cash pool concept is maintained whereas all funds are self - balancing unique entities and each fund has its own cash account which on ' occasion may show a "book overdraft" while others have an excess of cash. In this manner, the Borough is able to fully invest all idle funds without creating a "bank overdraft." ' All funds are deposited daily and 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 xix S. 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 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 127. You may note that a per capita high of $1,772 was reached in 1984 during the peak years 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 were not the exception. The required forms were not prepared and submitted promptly for ' drawdowns on State grants and other receivables were handled in a like manner. All accounts of the Borough are now relatively current and proper monitoring procedures are in place for timely receipt and deposit of any amounts due. ' 1. Investment policies The Borough treasurer operates as the central treasurer for all Borough monies. This, in effect, means the Borough, School District, Hospital and Mental Health Center monies. A cash pool concept is maintained whereas all funds are self - balancing unique entities and each fund has its own cash account which on ' occasion may show a "book overdraft" while others have an excess of cash. In this manner, the Borough is able to fully invest all idle funds without creating a "bank overdraft." ' All funds are deposited daily and 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 xix 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 $19 million. Interest rates for our fiscal year started off at 8.78 to 9.78 in early July 1989. At year -end of June 30, investments were earning from 7.98 to 8.58 for an average yield of 8.248. We closed out the year with investment earnings for all funds in the of amount $2,383,547. 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 past years 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 In recent years, insurance premium costs have excess of a million dollars annually. expenditure item for the Borough. , risen considerably and are now in xx 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. This has again been accomplished and a copy of this report is used and is on file. 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 and again for the fiscal year ended June 30, 1989. ' 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. xxi fl 2. Government Finance Officers Association Distinguished Budget Presentation Award I The Borough Mayor and Finance personnel have worked hard in recent years to streamline our budget. Each annual document encompasses the good features of the prior years while adding the best of current thinking. We submitted the fiscal year 1991 budget to GFOA and received the Distinguished Budget Presentation 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 xxii SECTION 2 FINANCIAL SECTION 101 West Benson Boulevard Telephone 907 563 4444 Anchorage, AK 99503 Price Waterhouse INDEPENDENT AUDITOR'S REPORT September 21, 1990 To the Mayor and Members of the Assembly Kodiak Island Borough We have audited the accompanying general purpose financial statements of Kodiak Island Borough as of June 30, 1990, 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 did not audit the financial statements of Kodiak Island Hospital and Care Center, which represent 328 of the total assets and 778 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. 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. 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, 1990, and the results of its operations and cash flows of its Enterprise 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 general purpose financial statements of the Kodiak Island Borough. Such information has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, accordingly, we express no opinion on it. i KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES AND '- ,COUN '? OUP$ JUNE 30, 1990 See accompanying notes to the general purpose financial statements 2 Governmental Fund Types Special Debt Capital ASSETS General Revenue Service Projects Current assets: Equity in central treasury $ 110,383 $ 134,790 $ 151,675 $1,107,488 Temporary investments 5,533,336 2,280,886 6,846,042 969,187 Other cash and cash equivalents 2,456 38,889 397,585 - Investment in deferred compensation plan - - - _ Receivables: State of Alaska 50,859 1,387,389 - 89,147 Federal Government - 61,094 - - Property taxes, net of allowance of $13,327 in 1990 and $11,773 in 1989 15,313 - - - Land sales contracts, due within one year - 245,276 - - Other, net of allowance for doubtful receivables of $433,000 in 1990 and $516,643 in 1989 111,794 105,224 91,344 16,987 Due from other funds - 2,444,008 168,270 1,063,768 Inventories - 207,387 - - Prepaids 158,894 427,345 - - Restricted assets: Equity in central treasury - - Temporary investments - Interest receivable - - Land sales contracts receivable, due after one year - 1,368,020 - - Borough designated investment - - - - Amount available to service long -term debt in Debt Service Funds - - - - Amount to be provided to service long -term debt - - - - Fixed assets in service - - - - Accumulated depreciation - - - - Construction work in progress - - - - Other Total assets $5,983.035 $8,7� $7.654,916 $3,2 See accompanying notes to the general purpose financial statements 2 EXHIBIT 1 Proprietary Fiduciary Totals Fund Type Fund Type Account Groups (Memorandum Only) Agency General General Long - Enterprise Fund TyRe Fixed Assets Term Debt 1990 1989 $ 364,879 $ - $ - $ - $ 1,869,215 $ 821,453 15,629,451 12,998,394 2,370,163 97,465 - - 2,906,558 3,306,468 - 622,980 - - 622,980 519,926 - - - 1,527,395 3,670,758 61,094 - 15,313 9,363 - 245,276 343,529 1,428,804 - - - 1,754,153 2,452,620 - - - - 3,676,046 2,668,945 213,502 - - - 420,889 462,659 14,455 - - - 600,694 100,699 20,160 - - - 20,160 - 481,556 - - - 481,556 476,382 15,794 - - - 15,794 9,316 - - - - 1,368,020 1,471,044 767,567 - - - 767,567 638,658 - - - 6,835,420 6,835,420 5,945,729 - - - 8,928,338 8,928,338 11,513,662 23,923,053 - 76,154,138 - 100,077,191 94,198,045 (4,132,709) - - - (4,132,709) (3,685,933) 31,410 - 1,819,351 - 1,850,761 7,020,894 239 $25,498,634 $ 720,445 $77,973,489 $15,763.758 $145,541,162 $144,942,850 Continued 3 KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1990 LIABILITIES AND FUND EQUITIES Liabilities: 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: Due to other funds 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 Health insurance Fiscal Year 1991 PL -874 Unreserved: Designated for subsequent year expenditures Undesignated Total fund equities Governmental Fund Types Special Debt Capital General Revenue Service Projects $ 40,076 $ 513,998 $ 1,260 $ 2,033 - - - 2,622 573,572 - - - 818,171 - 934 - - 300 - _ 1,774,837 - 608,266 3,960,878 413,802 818,236 - 4.0 1,888 4,094,680 819,496 612,921 2,051 47,084 - 94,028 - 85,937 - - - 200,000 - - 207,072 - - 1,979,096 760,000 6,835,420 1,606,510 - 3,305,535 - 933,118 1,981,147 4,605,628 6,835,420 2,633,656 $5,983,035 $8,7� $7,654 $3,24 See accompanying notes to the general purpose financial statements LA EXHIBIT 1 (Continued) Proprietary Fiduciary Totals Fund Type Fund Tvoe Account Groups (Memorandum Only) Agency General General Long - Enterprise Fund Type Fixed Assets Term Debt 1990 1989 $ 340,198 $ 5,053 $ - $ - $ 902,618 $ 1,214,827 _ _ _ - 2,622 87,932 - _ - - 573,572 669,798 346,176 - - - 1,164,347 1,159,639 21,613 - - - 22,547 24,598 14,441 - - - 14,741 11,955 - _ _ - 2,383,103 2,592,683 - 622,980 - - 622,980 519,926 _ - - - 5,192,916 2,662,890 - 92,412 - - 92,412 92,360 _ - _ _ - 6,055 - - - 151,675 151,675 136,481 - - - 15,310,000 15,310,000 17,550,000 302,083 302,083 322,910 722,428 720,445 - 15,763,758 26,735,616 27,052,054 19,899,311 - - - 19,899,311 20,368,863 - - 77,973,489 - 77,973,489 77,114,448 4,876,895 - - - 4,876,895 5,527,209 - 143,163 654,051 - 85,937 82,952 - 200,000 - - 207,072 - - 11,181,026 10,115,084 4,238,653 4,028,189 24,776,206 77,973,489 - 118,805,546 117,890,796 $25,498,634 $720,445 $77,973,489 $15,763,758 $145,541,162 $144,942,850 5 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1990 See accompanying notes to the general purpose financial statements 6 Special General Revenue Revenues: Property taxes S 2,640,044 S 255,761 Intergovernmental: State sources 1,309,940 18,716,230 Federal sources 6,298 2,343,484 Land sale proceeds - 370,886 Exxon reimbursement - 187,0 Insurance proceeds - _ Asbestos settlement - - Licenses, permits, fees and other local revenues 120,145 519,524 Investments and property 540,851 740,814 Total revenues 4,617,278 23,133.771 Expenditures: Current: Borough Assembly 66,425 - Mayor's department 171,549 - Clerk's department 24 883 - Finance department 257 692 - Legal department 178,58 - Consolidation committee - - Assessment department 205,157 - Community development department 301,586 36,810 Engineering /Facilities department 224,975 _ Health and sanitation 367,921 1,808,616 Data services 198,168 - Resource management 61,759 - General administration 371,624 755,152 Building inspector's department 65,939 - Emergency preparedness 8,754 _ Community and regional affairs liaison 2,586 - Education support 54,150 16,452,193 Economic development 48,244 _ Switchboard /Word processing 71,689 _ Culture and recreation 180,500 - Oil spill cleanup - 1,975,506 Capital outlay: Capital improvements - 39,083 Schools _ _ Service district maintenance - 194,528 General - - Debt service - Total expenditures 3,081,190 21.261,888 Excess (deficiency) of revenues over expenditures 1,536,088 1,871.883 Other financing sources (uses): Demand bond principal payments - - Proceeds of refunding bonds Payments to refunding bond escrow agent Operating transfers in 68,790 2,710,000 Operating transfers out (2,722,102 (3,963,027 Net other financing sources (uses) (2,653,312 (1,253,027 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (1,117,224) 618,856 Fund balance at beginning of year 3,098,371 3,983,787 Adjustment to reserve for fuel inventory 2,985 Fund balances at end of year S 1,981,147 S 4,605,628 See accompanying notes to the general purpose financial statements 6 EXHIBIT 2 7 Totals (Hemorandue Only) Debt capital Service Proiects 1990 1989 S - f - f 2,895,805 f 2,725,708 - 663,230 20,689,400 23,200,981 - - 2,349,782 1,010,297 - - 370,886 377,586 - - 187,072 1,013,079 - - 366,904 - 8,316 8,316 647,480 - - 639,669 779,306 490.768 281,377 2,053,810 1,469,534 490.768 952,923 29,194.740 31.590.875 - - 66,425 65,716 - - 171,549 127,046 - - 243,883 193,671 - - 257,692 208,486 - - 178,589 81,290 - - - 13,308 - - 205,157 174,257 - - 338,396 309,453 - - 224,975 136,907 - - 2,176,537 2,119,066 - - 198,168 145,512 - - 61,759 58,663 - - 1,126,776 1,032,883 - - 65,939 - - - 8,754 28,357 - - 2,586 4,551 - - 16,506,343 15,727,009 - - 48,244 30,817 - - 71,689 69,592 - - 180,500 161,460 - - 1,975,506 1,083,905 - - 39,083 44,633 - 707,827 707,827 4,825,007 - - 194,528 119,596 - 208,829 208,829 2,436,386 3,239.416 - 3,239,416 6,584,817 3,239,416 916,656 28,499,150 35,782,388 (2.748,648 36.267 695,590 (4.191.513 - 550,000 550,000 2,200,000 - - - 10,114,878 - - - (10,114,878) 3,638,339 1,015,500 7,432,629 10,758,052 - (820,500 (7.505,629 (11.093.052 3.6 8,339 745,000 477,000 1,865.000 889,691 781,267 1,172,590 (2,326,513) 5,945,729 1,852,389 14,880,276 17,197,519 2.985 9.270 S 6,835,420 $2,633,656 $16,055,851 ff 1 4.880.276 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, 1990 Excess (deficiency) of revenues and other financing sources over expen- ditures and other financing uses $(1,771,470 (1,117,224) S 654,246 SS (4� 618,856 Fund balance at beginning of year 3,098,371 3,983,787 Adjustment to reserve for fuel inventory 2,985 Fund balances at end of year $ 1,981,147 SS 4,60 See accompanying notes to the general purpose financial statements 8 General Fund SDecial Revenue Funds Variance - Favorable Budget Actual (Unfavorable) Budget Actual Revenues: Property taxes S 2,644,700 S 2,640,044 S (4,656) S 243,640 S 255,761 Intergovernmental: State sources 1,181,140 1,309,940 128,800 16,364,968 16,930,426 Federal sources 4,430 6,298 1,868 2,383,183 2,343,484 Land sale proceeds - - - 309,440 370,886 Licenses, permits, fees and other local revenues 77,600 120,145 42,545 675,625 516,894 Investments and property 131.700 540,851 409,151 401.860 740.814 Total revenues 4.039.570 4.617,278 577,708 20.378,716 21.158.265 Expenditures: Current: Borough Assembly 92,800 66,425 26,375 - - Mayor's department 186,270 171,549 14,721 - - Clerk's department 236,190 243,883 (7,693) - - Finance department 264,130 257,692 6,438 - - Legal department 135,150 178,589 (43,439) - - Assessment department 207,760 205,157 2,603 - - Community development department 305,310 301,586 3,724 56,000 36,810 Engineering department 287,860 224,975 62,885 - - Health and sanitation 363,250 367,921 (4,671) 1,954,910 1,808,616 Data services 202,070 198,168 3,902 - - Resource management 68,790 61,759 7,031 - - General administration 360,990 371,624 (10,634) 914,340 755,152 Building inspector 70,000 65,939 4,061 - - Emergency preparedness 20,000 8,754 11,246 - - Community and regional affairs liaison 5,700 2,586 3,114 Education support 61,500 54,150 7,350 16,980,337 16,452,193 Economic development 50,000 48,244 1,756 - - Switchboard /Word processing 68,560 71,689 (3,129) - - Culture and recreation 180,500 180,500 - - - Capital outlay: Capital improvements - - - 70,000 39,083 Service District Maintenance - - - 168,290 194,528 Debt service: Principal - - - _ _ Interest - Fiscal agent fees - Other - - _ _ Total expenditures 3.166.830 3,081.190 85,640 20.143,877 19,286,382 Excess (deficiency) of revenues over expenditures 872.740 1.536,088 663.348 234.839 1,871.883 Other financing sources (uses): Operating transfers in 68,790 68,790 - 2,774,785 2,710,000 Operating transfers out (2.713,000 (2.722,102 (9,102 (3,410.411 (3.963.027 Net other financing sources (uses) (2.644,210 (2,653,312 (9,102 (635,626 (1,253.027 Excess (deficiency) of revenues and other financing sources over expen- ditures and other financing uses $(1,771,470 (1,117,224) S 654,246 SS (4� 618,856 Fund balance at beginning of year 3,098,371 3,983,787 Adjustment to reserve for fuel inventory 2,985 Fund balances at end of year $ 1,981,147 SS 4,60 See accompanying notes to the general purpose financial statements 8 EXHIBIT 9 Debt Service Funds Totals (Memorandum Only) Variance - Variance - Variance - Favorable Favorable Favorable (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) S 12,121 f - f - S - S 2,888,340 S 2,895,805 S 7,465 565,458 - - - 17,546,108 18,240,366 694,258 (39,699) - - - 2,387,613 2,349,782 (37,831) 61,446 - - - 309,440 370,886 61,446 (158,731) - - - 753,225 637,039 g31�307 (116,186) 338.954 200,000 490,768 290,768 73 3.560 1.772.433 1,038.873 779.549 200,000 490,768 290.768 24,618.286 26,266.311 1,648.025 - - - - 92,800 66,425 26,375 - - - - 186,270 171,549 14,721 - - - - 236,190 243,883 (7,693) - - - - 264,130 257,692 6,438 - - - - 135,150 178,589 (43,439) - - - - 207,760 205,157 2,603 19,190 - - - 361,310 338,396 22,914 - - - - 287,860 224,975 62,885 146,294 - - - 2,318,160 2,176,537 141,623 - - - - 202,070 198,168 3,902 - - - - 68,790 61,759 7,031 159,188 - - - 1,275,330 1,126,776 148,554 - - - - 70,000 65,939 4,061 - - - - 20,000 8,754 11,246 - - - - 5,700 2,586 3,114 528,144 - - - 17,041,837 16,506,343 535,494 - - - - 50,000 48,244 1,756 - - - - 68,560 71,689 (3,129) - - - - 180,500 180,500 - 30,917 - - - 70,000 39,083 30,917 (26,238) - - - 168,290 194,528 (26,238) - 2,260,840 2,260,833 7 2,260,840 2,260,833 7 - 1,016,230 909,334 106,896 1,016,230 909,334 106,896 - 140,000 54,086 85,914 140,000 54,086 85,914 - 732,930 15.163 717.767 732,930 15,163 717.767 857.495 4.1 0,000 3.239,416 910.584 27,460.707 25.606,988 1,853,719 1.637,044 (3,950,000 (2,748,648 1,201,352 (2.842.421 659,323 3.501,744 (64,785) 3,162,220 3,638,339 476,119 6,005,795 6,417,129 411,334 (552,616 (15,000 - 15.000 (6.138.411 (6,685,129 (546.718 (617,401 3.147,220 3.638,339 491,119 (132.616 (268.000 (135,384 51,019,643 S (802.780 889,691 $1,6 S(2 391,323 $3,366,360 5,945,729 13,027,887 - 2.985 S 6,835,420 $13,422,195 9 EXHIBIT 4 KODIAK ISLAND BOROUGH PROPRIETARY FUND TYPE - ENTERPRISE FUNDS COMBINED STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 Operating expenses: Personal services 1990 1989 Revenues: 887,439 609,171 Water sales $ 191,450 $ 182,051 Sewer service charges 234,935 230,147 Refuse collection 945,714 503,569 Sanitary landfill user fees 227,933 162,207 Patient revenues 5,945,858 6,105,723 Installation charges 7,117 2,348 Other 139.302 207.077 Total revenues 7.692.309 7.393.122 Operating expenses: Personal services 221,966 300,672 Waste collection 887,439 609,171 Purchased water and sewer treatment 297,243 281,873 Contracted services 23,465 - Repairs and maintenance 54,152 42,925 Depreciation 696,787 717,679 Installation costs - 1,912 Professional care of patients 3,379,435 3,109,657 Plant operations and household 618,580 592,110 General administrative 2,592,648 1,899,789 Other 450.020 571.917 Total operating expenses 9.221.735 8.127.705 Operating loss (1.529.426 (734.583 Other income: Interest income 329,737 280,362 Other, primarily State of Alaska revenue sharing 93.335 133.434 423.072 413.796 Loss before operating transfers (1,106,354) (320,787) Operating transfers in 73.000 335.000 Net earnings (loss) (1,033,354) 14,213 Amortization of contribution in aid of construction 383.040 401.913 Increase (decrease) in retained earnings (650,314) 416,126 Retained earnings at beginning of year 5.527.209 5.111.083 Retained earnings at end of year $ 4.876.895 $5.5 See accompanying notes to the general purpose financial statements 10 ' KODIAK ISLAND BOROUGH PROPRIETARY FUND TYPE - ENTERPRISE FUNDS COMBINED STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 EXHIBIT 5 See accompanying notes to the general purpose financial statements 11 1990 1989 Operating loss ((1,529,426) S (734,583) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 696,787 717,679 Change in provision for uncollectible accounts (82,718) 204,000 Changes in assets and liabilities: Accounts receivable - Customers and patients 383,911 (585,824) Lutheran Hospitals and Homes Society of America - 283,141 City of Kodiak 103,749 (97,498) Third party patient payors (21,394) 151,947 Prepaid expenses 86,244 (100,699) Inventories at cost (22,619) (17,080) Receivable from State of Alaska - 367,812 Accounts payable 211,351 76,847 Due to other funds (10,525) 10,525 Customer deposits 2,786 4,354 Accrued compensation (966) 106,691 Other accrued liabilities 638 15,008 Total adjustments 1.347.244 1,136.903 Net cash provided by (used for) operating activities (182,182 402.320 Cash flows from noncapital financing activities: State of Alaska, Revenue Sharing payments received 109,460 236,900 Operating grants received - 1,591 Operating transfers -in from other funds 73.000 335.000 Net cash provided by noncapital financing activities 182.460 573.493 Cash flows from capital and related financing activities: Payments made on contracts - (60,646) Acquisition and construction of capital assets (274,423) (615,096) Net borrowings (repayments) on interfund capital - related expenditures (6,055) 6,055 Receipt of gifts restricted by donor for capital purchases 11,616 23,994 Proceeds from sale of equipment 35,187 - Net cash used for capital and related financing activities (233,675 (645.693 Cash flows from investing activities: Repayment of loan to Lutheran Hospitals and Homes Society of America - 1,846,000 Change in assets whose use is limited by the Borough (128,909) 171,739 Interest and dividends paid on investments 323.259 271,046 Net cash provided by investing activities 194.350 2.288.785 Net change in cash and cash equivalents (39,047) 2,618,903 Cash and cash equivalents at beginning of year 3.275.805 656,902 Cash and cash equivalents at end of year S 3.236.758 $3.275.805 See accompanying notes to the general purpose financial statements 11 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30. 1990 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 financial position and operating results of the Hospital are included in these combined financial statements as an enterprise fund. ' Fiscal Year Ends The Borough has a June 30 year end. The School District, as required by State Statute, also has a June 30 year end. The Hospital has a December 31 year end and the accompanying financial statements include the financial position for the Hospital as of December 31, 1989, and the results of operations and cash flows for the year then ' ended. Presentation ' The combined financial statements provide a summary overview of the financial position of all funds and account groups and of the operating results of all funds. These combined statements have been prepared from the detailed statements included in the 13 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30. 1990 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Scope and Presentation of Financial Statements (Continued): combining and individual fund and account group statements and schedules included in this report. Total columns on the combined statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Nor are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of these data. The accounting policies of the Borough conform to generally accepted accounting principles. FUND ACCOUNTING The accounts of the Borough are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. Operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Borough resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in the combined financial statements in this report into six generic fund types and three broad fund categories as follows: GOVERNMENTAL FUND TYPES General Fund - The General Fund is the general operating fund of the Borough. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. Debt Service Funds - 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 of equipment and acquisition or construction of major capital facilities. 14 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Scope and Presentation of Financial Statements (Continued): 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. 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. 15 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30. 1990 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Scope and Presentation of Financial Statements (Continued): 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. 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 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 (the Borough's Proprietary Fund Type) 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. 16 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Accounting (Continued): 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. ' Property Taxes Property taxes are based on the assessed value of taxable property as of January 1. ' Pursuant to Alaska Statute 29.53.170, the Borough establishes the mill rate on or before June 15. Tax bills are then mailed on or before July 1st. Taxes are due when billed and generally become delinquent on or after October 15th. ' The Borough code also provides for split payments. If a taxpayer avails himself of this provision then one half must be paid on or before August 15th and the second half then becomes due on or before November 15th (in lieu of October 15th). Borough property tax revenues are recognized in the fiscal year for which they are levied and in which they become measurable and available. All taxes are delinquent on and after November 16th and a tax foreclosure process commences as outlined in Alaska Statutes Title 29. Briefly this entails the petition for Judgment of Foreclosure signed by the District Court Judge and the publication of all delinquent taxes in the local newspaper for four consecutive weeks. ' When copies of these actions are filed with the courts delinquent properties have been effectively liened upon (generally in November). ' Intergovernmental Revenue ' State of Alaska shared revenues, State of Alaska municipal assistance and various State education - related entitlement programs and State levied taxes (the proceeds of which are distributed to local governments) are recorded in the fiscal year to which they relate, including accrual at year end 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 I ' expenditures in the period in which the expenditures were incurred. 1 17 Prepayment of insurance and similar services extending over more than one year is 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 are then mailed on or before July 1st. Taxes are due when billed and generally become delinquent on or after October 15th. ' The Borough code also provides for split payments. If a taxpayer avails himself of this provision then one half must be paid on or before August 15th and the second half then becomes due on or before November 15th (in lieu of October 15th). Borough property tax revenues are recognized in the fiscal year for which they are levied and in which they become measurable and available. All taxes are delinquent on and after November 16th and a tax foreclosure process commences as outlined in Alaska Statutes Title 29. Briefly this entails the petition for Judgment of Foreclosure signed by the District Court Judge and the publication of all delinquent taxes in the local newspaper for four consecutive weeks. ' When copies of these actions are filed with the courts delinquent properties have been effectively liened upon (generally in November). ' Intergovernmental Revenue ' State of Alaska shared revenues, State of Alaska municipal assistance and various State education - related entitlement programs and State levied taxes (the proceeds of which are distributed to local governments) are recorded in the fiscal year to which they relate, including accrual at year end 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 I ' expenditures in the period in which the expenditures were incurred. 1 17 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Accounting (Continued): Revenue from Investments and Property Amounts earned on investment of available cash balances and the rental of building facilities are recorded in the period to which they relate, including accrual at year end of the balance due. Land Sales Proceeds and Other Local Revenues Amounts received pursuant to land sale contracts (long -term in nature) are recorded on the cash basis. Other local revenues are recorded on a basis consistent with their nature in relation to measurement and availability standards. The Proprietary Fund Type 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, the budget is legally enacted through passage of an ordinance by Borough Assembly action. If the Borough Assembly fails to pass an ordinance, the budget submitted by the Mayor becomes the adopted budget. 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: 18 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30. 1990 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Budgets and Budgetary Accounting (Continued): (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. (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. 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 Capital Projects Funds and the Oil Spill Clean Up Fund are budgeted on an annual basis encompassing a fiscal year. Budgets of Capital Project Funds and the Oil Spill Clean Up Fund generally encompass the period from start up to project completion which is generally greater than one year. g. Appropriations lapse at year end to the extent that they have not been expended for all funds except Capital Projects Funds and the Oil Spill Clean Up Fund, which lapse at project completion. h. The budget amounts of the combined statements do not agree to the total of the budgets in the individual Special Revenue Funds. Expenditures and related budget amounts are presented in a grant -to -date format for grants extending beyond one fiscal year. The combined statements include only budget amounts for the year ended June 30, 1990. ' i. Budgets adopted by the Borough Assembly are in accordance with generally accepted accounting principles. ' Reductions in appropriations of $201,480 for the Mental Health Center and $4,100 for Woman's Bay Road Service District were enacted during fiscal year 1990. 1 19 j. Additional appropriations of $165,350 for the General Fund, $35,00 for Alaska Coastal Management Grants, $3,573,600 for the Oil Spill Fund, $20,000 for the Monashka Bay Road Service District, $15,000 for Debt Service - Other, t $835,351 for Borough Various Projects, $100,000 for School Bond Improvements and $310,290 for State Capital Grants were enacted during the year. ' Reductions in appropriations of $201,480 for the Mental Health Center and $4,100 for Woman's Bay Road Service District were enacted during fiscal year 1990. 1 19 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30. 1990 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Budgets and Budgetary Accounting (Continued): 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, 1990, 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. ENCUMBRANCES Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds and Capital Projects Funds. Encumbrances outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. 20 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities and Fund Equity (continued): INVENTORIES The Kodiak Island Borough Expendable operating supplies of the Borough are accounted for using the purchase method and, at June 30, 1990, there were no significant amounts 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 cost, except USDA food inventory (acquired at nominal price) which is recorded at replacement cost. Fuel inventory is accounted for using the purchase method and is recorded at cost, with cost determined on a first -in, first -out (FIFO) basis. 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. 21 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30. 1990 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Cash Flows For purposes of the statement of cash flows, the Water Utility Fund, Sanitary Services fund, Sewer Utility Fund and Hospital Fund considers all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased to be cash equivalents. Reclassification The 1989 Statement of Changes in Financial Position was restated to a Statement of Cash Flows to conform to the 1990 Statement of Cash Flows. There was no effect on previously reported excess (deficiency) of revenues and other financing sources over expenditures and other financing uses, net earnings (loss), fund balance or fund equity. NOTE 2 - CASH AND TEMPORARY INVESTMENTS Cash balances of most Borough funds are pooled in a central treasury. Each fund type's portion of this pool is displayed on the combined balance sheet as "Equity in central treasury ". In addition, investments are separately held by several of the Borough's funds. Investments, other than the investment in the deferred compensation plan, which is carried at market value, and carried at cost. Deposits At June 30, 1990, the carrying amount of the Borough's deposits was $2,292,551 and the bank balance was $3,036,387. The insured and collateral status of the year end bank balance was as follows: Status Covered by federal depository held by the Borough's agent Covered by collateral held in department in the Borough's Uninsured and uncollateralized Total deposits Investments Amount insurance or by collateral in the Borough's name $2,618,263 the pledging bank's trust name _ 418.124 $3,036,387 Statutes authorize the Borough to invest in obligations of the United States, the State of Alaska and its political subdivisions, savings accounts, certificates of deposit, banker's acceptances, repurchase agreements and such other legal security instruments. The Borough Code requires all investments to be collateralized and /or insured. Collateral pledged on investments is required to be held for the Borough by a third party bank. 22 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 2 - CASH AND TEMPORARY INVESTMENTS (Continued) In accordance with Governmental Accounting Standards Board Statement No. 3 (GASB 3) investment are categorized as follows: Category 1 includes investments that are insured, or registered, or securities held by the Borough or its agent in the Borough's name. Category 2 includes uninsured and unregistered investments with securities held by the broker's or dealer's trust department or agent in the Borough's name. Category 3 includes uninsured unregistered investments, for which the securities are held by the broker or dealer or by its trust department or agent in the Borough's name. Equity in central treasury Temporary investments Other cash and cash equivalents Investment in deferred compensation plan ' Restricted equity in central treasury Restricted temporary investments Total deposits and investments $ 1,869,215 15,629,451 2,906,558 622,980 20,160 481.556 $21,529,920 1 23 The Category of $2,292,551 and investments of $19,237,369, totalling $21,529,920, are reported under Carrying Market 1 2 3 Amount Value Repurchase agreements S - S 3,000,000 S - S 3,000,000 S 3,000,000 U.S. Government Securities 2,000,000 - - 2,000,000 2,004,544 Banker's Acceptances 6,782,189 2,408,091 - 9,190,280 9,248,097 Commercial Paper 958,752 961,976 - 1,920,728 1,961,575 Money Market Account 217,382 - - 217,382 217,698 Investments held by fiscal agent for debt service - 181.203 - 181,203 182.405 SS 9 .958.3 23 SS 6� 16,509,593 16,614.319 1CMA - Deferred Compensation Plan 622,980 622,980 Hospital's Mutual Fund 2,104,796 2,104.796 Total Investments S19,2� $19,395 Equity in central treasury Temporary investments Other cash and cash equivalents Investment in deferred compensation plan ' Restricted equity in central treasury Restricted temporary investments Total deposits and investments $ 1,869,215 15,629,451 2,906,558 622,980 20,160 481.556 $21,529,920 1 23 The above deposits of $2,292,551 and investments of $19,237,369, totalling $21,529,920, are reported under the following captions in the combined financial statements: Equity in central treasury Temporary investments Other cash and cash equivalents Investment in deferred compensation plan ' Restricted equity in central treasury Restricted temporary investments Total deposits and investments $ 1,869,215 15,629,451 2,906,558 622,980 20,160 481.556 $21,529,920 1 23 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 2 - CASH AND TEMPORARY INVESTMENTS (Continued) Investments made by the Borough are identified by the specific funding source. A summary of these investments at cost on June 30, 1990 follows: 24 Special Debt Capital General Revenue Service Projects Enterprise Agency Fund Funds Funds Funds Funds Funds Total Repurchase agreements: National Bank of Alaska 7.94% S - f - 11,000,000 S - f - S - S 1,000,000 8.0 - - 1,000,000 - - - 1,000,000 8.02 650,000 350,000 - - 1,000,000 650,000 350,000 2,000,000 - - 3,000.000 United States Government Securities: Seattle First National Bank 8.3% 1,000,000 - - - - - 1,000,000 8.475 1,000,000 - - 1,000,000 2.000.000 - - 2,000,000 Banker's Acceptances: Bateman Eichler, Hill Richards, Inc. 8.010% - - - 487,632 - - 487,632 8.312 959,674 - - - - - 959,674 8.396 - - 960,785 - - - 960,785 Merrill lynch, Pierce, Fenner and Smith, Inc. 8.256% - - 962,900 - - - 962,900 8.257 - - - 481,555 482,557 - 964,112 8.392 964,910 - - - - - 964,910 8.486 - - 960,382 - - - 960,382 Seattle First Bank 8.172% - - 1,000,000 - - - 1,000,000 8.195 - 964,011 - - - - 964,011 8.222 - 966,875 - - - - 966,875 7924,584 1.930,886 3,884,067 969.187 482,557 - 9,191,281 Commercial Paper: Bateman Eichler, Hill Richards, Inc. 8.085% - - 961,975 - - - 961,975 Seattle First Bank 8.724% 958,752 - - - - - 958,752 958,752 961,975 - 1,920,727 Total temporary investments 5,533,336 2,280,886 6,846,042 969,187 482.557 - 16,112,008 Hospital's Mutual Fund - - - - 2,104,796 - 2,104,796 Various investments with ICMA -RC (IRS 457) - - - - - 622,980 622,980 Money Market: Merrill lynch, Pierce, Fenner and Smith, Inc. - - 216,382 - - - 216,382 Investments held by Fiscal agent for debt service - 181.203 - - - 181,203 Total investments $5,533,336 $2,280,886 $7,243,627 $969,187 $2,587,353 $622,980 $19,237,369 24 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 3 - ANNUAL APPROPRIATION TO THE SCHOOL DISTRICT: An annual appropriation is made to the School District in order to provide the School District with total resources. in a fiscal year equal in amount to budgeted expenditures. In addition to the annual appropriation, the Borough provides the School District, without charge, general liability and property insurance and the annual independent audit. NOTE 4 - HOSPITAL APPROPRIATION By terms of the operating agreement with the Lutheran Health Systems Management Company, the Borough is ultimately responsible for operating losses (as contractually defined), if any, sustained by the Hospital. Shared revenue received by the Borough from the State of Alaska includes $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, 1990, 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. 1 Plan Descriptions and Provisions Public Employees' Retirement System (PERS Employees hired prior to July 1, 1986 with five or more years of credited service are entitled to annual pension benefits beginning at normal retirement age 55 or early retirement age 50. For employees hired after June 30, 1986, the normal and early retirement ages are 60 and 55, respectively. The normal pension benefit is equal to 28 of the member's three highest average monthly compensation for the first ten years of service, 2 -1/48 for the second ten years of service and 2 -1/28 for the third ten years of service. All service earned prior to July 1, 1986 will be calculated using the 28 multiplier. Employees with 30 or more years of credited service may retire at any age and receive a normal benefit. The system also provides death and disability benefits and major medical benefits. Under State law, covered employees are required to contribute 6.758 of their annual salary to the System and the Borough contributes the amount actuarially required in addition to employee contributions to finance the benefits of the system. 1 25 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 5 - RETIREMENT COMMITMENTS (Continued) Teachers' Retirement System (TRS) The Teachers' Retirement System of Alaska is a joint contributory retirement system to provide benefits for teachers of the State of Alaska. All the School District's certificated employees are participants in TRS. Membership in TRS is compulsory for each certificated elementary or secondary teacher or other certificated personnel who are employed on a full -time or part -time basis in positions that require teaching certificates as a condition of employment. Employees with eight years or more of credited service are entitled to pension benefits beginning at normal retirement age (55) equal to 28 of their highest three -year average monthly compensation for each year of service. The Plan permits early retirement at age 50. Employees may elect to receive their pension benefits in the form of a joint or survivor annuity. Effective January 1, 1987, a married member who retires must receive his benefit in the form of a joint and survivor annuity unless the member's spouse consents to another form of benefit. Minimum benefits for employees eligible for retirement are $25 per month for each year of credited service. 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. Funding Status and Progress 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, 1989 (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. 26 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30. 1990 NOTE 5 - RETIREMENT COMMITMENTS (Continued) Funding Status and Progress (Continued) The pension benefit obligation of PERS and TRS as calculated in the most recent actuarial valuation is as follows (in thousands): PERS TRS (1) School All orou h District Employers Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits Current employees: Accumulated employee contributions including allocated investment earnings Employer -- financed vested Employer -- financed nonvested TOTAL PENSION BENEFIT OBLIGATION $1,518 $3,298 $ 779,296 445 787 253,436 1,038 2,286 436,431 327 960 88.480 3,328 7,331 1,557,643 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 3,468 7.794 1.480.389 ASSETS IN EXCESS OF (UNFUNDED) PENSION BENEFIT OBLIGATION 140 463 $ (77,254 (1) The TRS system does not make separate measurements of assets and pension benefit obligation for individual employers. Amounts for TRS represent the system as a whole. The School District's actuarially determined contribution was 1.38 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. 27 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 5 - RETIREMENT COMMITMENTS (Continued Funding Status and Prog (Continued): The Systems have an actuarial valuation performed annually (as of June 30) which determines the contribution rates for the year ended two years subsequent to the valuation date. The contributions to the Systems for fiscal year 1990 were made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1988. The contributions (in thousands) consisted of the following: PERS Borough Percent of Covered Amount Payroll Covered payroll- $2.37 Contributions - Normal cost - Total contributions paid 287 Amortization of unfunded liability TOTAL S 287 Required contributions - Employer S 127 Employee 160 TOTAL S 287 10�% PERS School District Percent of Covered Amount Payroll 52,562 100.00 TRS Percent of Covered Amount Payroll $7.674 100.00% 12.09 282 11.02 1292 16.84 - 138 1.80 12.09 S 282 11.02 L 18.64 5.34% S 109 4.27% S 893 11.64% 6.75 173 6.75 537 7.00 12.09 S 282 11.02% 51,430 18.64% In addition to the required TRS contributions noted above, the School District made supplemental and arrearage payments of $51,359 during the year. Total current year payroll for the Borough and School District was $2,724,228 and $10,552,031 respectively. 28 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30. 1990 NOTE 5 - RETIREMENT COMMITMENTS (Continued) Historical Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. The pension benefit obligation has not been determined by the actuary for years prior to June 30, 1987. As a result, only information at June 30, 1989, 1988, and 1987 is available regarding the following trend indicators, (in thousands): PERS School Borough District Net asset available for benefits: 1987 $2,222 $5,685 1988 2,896 7,111 1989 3,468 7,794 Pension benefit obligation (PBO): 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 $1,929 $5,085 1988 2,680 6,477 1989 3,328 7,331 1987 115% 112% 1988 108 110 1989 104 106 1987 $ 294 $ 600 1988 216 634 1989 140 463 1987 $1,830 $2,473 1988 2,131 2,526 1989 2,373 2,562 1987 16.07% 24.26% 1988 10.14 25.10 1989 5.90 16.20 1987 6.75% 6.75% 1988 6.75 6.75 1989 6.75 6.75 1990 6.75 6.75 1987 4.278 7.29% 1988 9.20 6.24 1989 9.20 6.24 1990 5.34 4.27 29 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 6 - FIRED ASSETS A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1990 follows: Land Buildings Improvements other than buildings Machinery and equipment Construction work in progress Balance Balance July 1. 1989 Additions Deductions June 30. 1990 $ 7,469,315 $ - $ - $ 7,469,315 58,659,261 5,811,262 167,935 64,302,588 842,139 - - 842,139 3,232,446 414,984 107,334 3,540,096 6,911,287 687.492 5,779,428 1,819,351 $77,114,448 $6,9_ $6,0_ $77,973,489 The following is a summary of enterprise fund type fixed assets at June 30, 1990: Unclassified utility plant in service $17,874,572 Hospital building and fixed equipment 4,193,858 Major movable equipment 1.854.623 23,923,053 Less: accumulated depreciation (4,132,709 19,790,344 Construction work in progress 31.410 Net Fixed Assets $19,821,754 NOTE 7 - DEMAND BONDS Long -Term Debt Included in long -term debt is $6,000,000 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. 30 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30. 1990 NOTE 7 - DEMAND BONDS (Continued) Long -Term Debt (Continued) 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. 31 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30. 1990 NOTE 8 - LONG -TERM DEBT The following is a summary of long term debt payable for the year ended June 30, 1990: Principal Interest Payments Issue Maturity Type of Debt Rates Dates Date Date Dates Amount Loans Payable: Environmental Protection Agency Asbestos Abatement 0.0* - 6/20/85 11/8/05 12/31/90 S 10,417 General Obligation Serial Bonds: Schools, Multi - projects Schools, Refunding Variable Quarterly 5/28/86 06/01/96 6.6 -8% 8/1 -2/1 5/1/89 8/1/2000 * Interest free unless delinquent; then 7% plus fees and penalties. 06/30/91 10,417 12/31/91 10,417 06/30/92 10,417 to x 25 06/30/04 12/31/04 10,406 302,082 9/1/90 250,000 12/1/90 250,000 3/1/91 250,000 6/1/91 250,000 9/1/91 250,000 12/1/91 250,000 3/1/92 250,000 6/1/92 250,000 9/1/92 250,000 12/1/92 250,000 3/1/93 250,000 6/1/93 250,000 9/1/93 250,000 12/1/93 250,000 3/1/94 250,000 to x 10 6/1/96 6,000,000 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 9,310,000 $15,612,082 32 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 Authorized Prior Years Balance at Year Amount Issued Retired July 1, 1989 1985 S 375,000 S 375,000 S 52,090 S 322,910 S 1979 9,930,000 9,930,000 2,930,000 Current Year Balance at Issued Retired June 30, 1990 - S 20,828 S 302,082 7,000,000 1,000,000 6,000,000 1989 10,000,000 10,000,000 - 10,000,000 - 690,000 9,310,000 $20,305,000 $20.305,000 $ 2,982.090 $17,322,910 S S 1,710,828 $15,612,082 33 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 8 - LONG -TERM DEBT (Continued) A summary of long -term debt as of and for the year ended June 30, 1990 follows July 1. 1989 General obligation bonds $17,000,000 EPA loan payable 322,910 Accrued annual leave 136.481 $17.459.391 Balance at Additions Deductions June 30. 1990 $ - $1,690,000 $15,310,000 - 20,828 302,082 15.195 - 151.676 $ 15,195 $1.7� $15.763.758 The annual requirements to amortize all general obligation debt and the EPA loan payable outstanding as of June 30, 1990, including interest payments of $5,776,029 on the general obligation debt, are as follows: June 30. 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 $21.388.111 The amount of $6,835,420 is available in the Debt Service Funds to service all general obligation bonds. There are a number of limitations and restrictions contained in the various bond indentures. The Borough is in compliance with all significant limitations and restrictions. Refunding Bonds During 1974, the Borough defeased existing school bonds by utilizing the proceeds of bonds then issued. The proceeds from the "refunding bonds" (issued in the amount of $2,325,000) have been invested in U.S. Government securities at an interest rate which 34 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 8 - LONG -TERM DEBT (Continued) will result in a return of proceeds that, when added to the securities' principal balances, will be sufficient to meet the interest and principal requirements of the defeased bonds. The investments in the securities and the current obligations of the defeased bonds are not reflected in the combined financial statements. At June 30, 1990 the Security Pacific Bank at Seattle held investments in trust sufficient to pay the outstanding principal plus accrued interest on the general obligation school bonds, Series 1980. In 1989 the Borough sold $10,000,000 general obligation bonds to advance refund general obligation bonds totalling $9,495,000. The proceeds of the refunding issue were placed in a special escrow account and have been invested in securities of the U.S. Government and its agencies. The maturities of these investments coincide with the principal and interest payment dates of the refunded bonds and are sufficient to pay all principal and interest on the bonds when due as required by applicable laws. Accordingly, the refunded bonds have been eliminated from the long -term debt and the advance refunding bonds added. NOTE 9 - CAPITAL PROJECTS FUNDS CONSTRUCTION COMMITMENTS A summary of Capital Projects Funds construction commitments at June 30, 1990 follows: Various Borough Projects $ 34,828 State Capital Grants Fund 59.200 $ 94.028 Resources are presently available or committed to finance construction commitments at June 30, 1990 for all funds except the School Bond Improvements Fund. The additional resources required in this fund will be available during fiscal year 1991. 35 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 10 - ENTERPRISE FUNDS SEGMENT INFORMATION The Borough owns and operates a Water and Sewer Utility Fund and a Sanitary Landfill Fund. The Kodiak Island Borough Hospital is included in the Borough's financial statements as a component unit. Segment financial data as of and for the year ended June 30, 1990 for the Sanitary Services, Water and Sewer Utilities and as of and for the year ended December 31, 1989 for the Hospital are as follows: Operating revenues Depreciation operating loss Operating grants entitlements Operating transfers in Net loss Contributions in aid of construction: Additions (deletions) Amortization Property, plant and equipment additions Net working capital Total assets Total equity Sanitary Water Sewer Services Utility Utility Hospital Total $1,181,115 S 200,489 S 239,061 S 6,071,644 S 7,692,309 77,923 109,653 196,612 312,599 696,787 (95,231) (95,800) (158,587) (1,179,808) (1,529,426) - - - 134,460 134,460 60,000 - - 13,000 73,000 (35,231) (62,971) (138,314) (796,838) (1,033,354) - (49,064) (49,065) 11,616 (86,513) 76,805 109,645 196,590 - 383,040 - - - 71,831 71,831 5,141 267,448 57,940 3,338,846 3,669,375 2,417,157 5,594,018 9,316,600 8,170,859 25,498,634 2,376,725 5,567,899 9,305,696 7,525,886 24,776,206 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. 36 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 12 - KODIAK ISLAND HOSPITAL LIABILITY TRUST Subsequent to December 31, 1989, the Hospital entered into an agreement to establish a self - insured retention trust for payment of the first $1,000,000 in claims of hospital liability, malpractice, or professional negligence alleged by third parties. The agreement specifies that a minimum of $200,000 annually shall be transferred to the trust until the total balance equals $1,000,000. The first deposit in the amount of $250,000 was made on June 29, 1990. NOTE 13 - INDIVIDUAL FUND DISCLOSURES Interfund Receivables and Payables A summary of interfund receivables and payables at June 30, 1990 is as follows: Receivable Payable Capital Project. Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue s Fund Fund Fund Fund Fund Fund Fund Fund Fund Various Borough Projects Women's Bay Fire Monaska Bay Road Service District #1 Bay View Road Mental Health Center Energy Day Care Building and Grounds $ 227,835 5,803 2,637 1,293 774 101,892 10,413 15,211 89,812 Special Revenue Fund - Education Enterprise Fund - Hospital General Fund 2,444,008 1,516,870 3,960,878 Debt Service Fund - School Bonds 168,270 Special Revenue Fund - Education 168,270 Capital Projects Fund - Various Borough Projects 818,236 - ' Debt Service Fund - School Bonds 818,236 Capital Projects Fund - School Equipment and Furnishings 17,697 - ' Special Revenue Fund - Education 17,697 $5,192,916 $5,192,916 Subsequent to December 31, 1989 the Kodiak Island Hospital moved $1,516,870 to the central treasury of the Kodiak Island Borough. Because the hospital has a December 31 ' year end, the interfund payable of $1,516,870 from the general fund to the hospital fund is not recorded on the hospital balance sheet. Accordingly, the due to other funds and the due from other funds in the combined financial statements differ by ' $1,516,870. 37 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 13 - INDIVIDUAL FUND DISCLOSURES (Continued) Fund Deficits Fund deficits at June 30, 1990 are as follows: Special Revenue Monashka Bay Road Services District $2,704 Service District Number One 1,293 Bayview Road Service District 842 These deficits will be funded through increased fiscal year 1991 property tax levies and decreased fiscal year 1991 expenditures. Capital Projects - State Capital Grants $311,975 This deficit will be funded in fiscal year 1991 through transfers from other funds. Interfund Transfers Interfund operating transfers have been made in accordance with budget ordinances with the exceptions of the transfer of the funding of long -term annual leave. Funds are transferred from one fund to support expenditures of other funds in accordance with the authority established for the individual fund. Transfers within fund types have been eliminated. Transfers between fund types during the year ended June 30, 1990, were as follows: 38 out Transfers In special Debt Capital General Revenue Service Projects Enterprise Fund Funds Funds Funds Funds Fund Type Operating transfers: General Fund $2,722,102 $ - 52,690,000 S 9,102 S 10,000 413,000 Special Revenue 3,943,027 68,790 3.629,237 185,000 60,000 Total Operating Transfers $6,665,129 568,790 $2,6 S3.638.339 $195,000 573,000 38 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 13 - INDIVIDUAL FUND DISCLOSURES (Continued) Excess of Expenditures Over Appropriations General Fund The following departments' expenditures exceeded their appropriations: Devartment Excess Clerk's department $ 7,693 Legal Services 43,439 Health and Sanitation 4,671 General Administration 10,634 Switchboard /word processing 3.129 $ 69,566 The following funds' expenditures exceeded their appropriations: Special Revenue Funds Fund Excess Monashka Bay Road $ 3,824 Road District 1 6,629 Women's Bay Road District 13,545 Bay View Road District 1.943 $ 25,941 Enterprise Funds Fund Excess Sanitary Services $ 33,166 Water 90,289 Sewer 145.508 $ 268,963 39 KODIAK ISLAND BOROUGH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1990 NOTE 13 - INDIVIDUAL FUND DISCLOSURES (Continued) Proprietary Funds reconciliation of Fund equity for year ended June 30, 1990. Fund equity at beginning of year Net earnings (loss) Increase (decrease) in contributed capital Fund Equity at end of year Sanitary Water Services Utility $2,411,956 $5,679,934 (35,231) (62,971) (49,064 $2, 3� 55 5� 67 899 Sewer Utility $9,493,074 (138,314) (49.064 $9 3y Hospital $8,311,108 (796,838) 11,616 $7,525.886 Total $25,896,072 (1,033,354) (86.512 $24,776.206 NOTE 14 - CONTINGENCIES Liti a� tion 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. 40 II L� 1 GENERAL FUND ' The General Fund accounts for the financial operations of the Borough that are not required to be accounted for in any other fund. Principal sources of revenue are property taxes and intergovernmental revenues. Primary expenditures in the General Fund are for general governmental and public services. C! EXHIBIT A -1 KODIAK ISLAND BOROUGH GENERAL FUND BALANCE SHEET YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 ASSETS 42 1990 1989 Equity in Central Treasury $ 110,383 $ - Temporary investment 5,533,336 3,512,286 Other cash 2,456 1,235 Total cash and investments 5,646,175 3,513,521 Receivables: State of Alaska 50,859 1,749,479 Property taxes: Delinquent taxes 28,640 21,136 Allowance for uncollectible delinquent taxes (13,327 (11,773 Net property taxes 15,313 9,363 Accrued interest receivable 111,622 23,510 Other 172 - Net receivables 177,966 1,782,352 Prepaid 158,894 - S 5,983,035 S 5,295,873 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 40,076 $ 43,111 Payroll taxes and employee benefits - 23,640 Other accrued liabilities 934 3,316 Due to other funds 3,960,878 2,127,435 Total liabilities 4,001,888 2,197,502 Fund balance: Reserved for encumbrances 2,051 15,981 Designated for subsequent year expenditures 1,979,096 3,082,390 Total fund equities 1,981,147 3,098,371 S5,983,035 $5,295,873 42 1 EXHIBIT A -2 KODIAK ISLAND BOROUGH ' GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 1990 Variance - ' Favorable 1989 Budget Actual (Unfavorable) Actual Revenues: Property taxes: Real $1,763,500 $1,700,685 $(62,815) $1,643,093 Personal 271,000 256,006 (14,994) 220,072 Motor vehicle 150,000 180,265 30,265 173,644 ' Penalty and interest 20,000 51,835 31,835 33,519 Payment in lieu of taxes 440,200 451,253 11,053 445,108 Total property taxes 2,644,700 2,640,044 (4,656 2,515,436 Intergovernmental: State sources: State shared revenue 676,490 696,621 20,131 863,771 Municipal assistance 495,000 596,297 101,297 526,608 ' Raw fish tax 2,044,881 Electric co -op tax 9,650 16,412 6,762 9,634 Miscellaneous - 610 610 18 Total state sources 1,181,140 1,309,940 128,800 3,444.912 Federal sources 4,430 6,298 1,868 5,036 ' Total intergovern- mental revenue 1,185,570 1,316,238 130,668 3,449,948 Licenses, permits, fees and i other local revenues: Building and trailers 20,000 34,032 14,032 23,549 Subdivision and zoning fees 6,400 10,848 4,448 15,671 Sale of copies Switchboard services - 8,600 - 12,867 - 4,267 1,401 16,446 Emergency medical services 32,450 27,370 (5,080) 26,015 Miscellaneous 10,150 35,028 24,878 12,666 Total licenses, permits fees and other local sources 77,600 120,145 42,545 95,748 Investments and property: Interest income 120,000 537,228 417,228 351,772 Gain on exchange 10,000 - (10,000) - Lease rentals on land ' and buildings Total investments 1,700 3,623 1,923 2,751 and property 131,700 540,851 409,151 354,523 Total revenues 4,039,570 4,617,278 577,708 6,415,655 ' 43 Continued EXHIBIT A -2 (Continued KODIAK ISLAND BOROUGH GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 1990 Variance - Favorable Budget Actual (Unfavorable) Expenditures: 1� 1 k 1989 , Actual Borough Assembly $ 92,800 $ 66,425 $ 26,375 $ 65,716 Mayor's department 186,270 171,549 14,721 127,046 Clerk's department 236,190 243,883 (7,693) 193,671 Finance department 264,130 257,692 6,438 208,486 Legal services 135,150 178,589 (43,439) 81,290 Consolidation committee - - - 13,308 Assessment department 207,760 205,157 2,603 174,257 Community development department 305,310 301,586 3,724 281,250 Engineering /Facilities department 287,860 224,975 62,885 136,907 Health and sanitation 363,250 367,921 (4,671) 517,112 Data services 202,070 198,168 3,902 145,512 Resource management 68,790 61,759 7,031 58,663 General administration 360,990 371,624 (10,634) 299,131 Building inspector 70,000 65,939 4,061 - Emergency preparedness 20,000 8,754 11,246 28,357 Community and Regional Affairs Liaison 5,700 2,586 3,114 4,551 Education support 61,500 54,150 7,350 28,997 Economic development 50,000 48,244 1,756 30,817 Switchboard /Word processing 68,560 71,689 (3,129) 69,592 Culture and recreation 180,500 180,500 - 161,460 Total expenditures 3,166,830 3,081,190 85,640 2,626,123 Continued 44 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, 1990 WITH COMPARATIVE TOTALS FOR 1989 1990 Variance - Favorable 1989 Budaet Actual (Unfavorable) Actual Excess of revenues over expenditures 872,740 S 1,536,088 Operating transfers in: Special Revenue - land sales 68,790 68,790 Total operating transfers from other funds 68,790 68,790 Operating transfers out: Special Revenue: Education 2,100,000 2,100,000 Mental Health 140,000 140,000 Buildings and grounds 450,000 450,000 Capital Projects: Various Borough projects 10,000 10,000 State Capital Grants - - Debt Service: Other - 9,102 Enterprise Funds: Sanitary services fund - - Hospital 13,000 13,000 Total operating transfers to other funds 2,713,000 2,722,102 Net operating trans- fers out (2,644,210 (2,653,312 Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out S(1,771,470 (1,117,224) Fund balance at beginning of year 3,098,371 Fund balance at end of year S 1,981,147 S663,348 S 3,789,532 56,410 56,410 2,100,000 140,000 446,100 148,390 13,350 (9,102) 8,597 140,000 (9,102 2,996,437 (9,102 _(2,940,027 $ 654,246 849,505 2,248,866 $ 3,098,371 1 45 EXHIBIT A -3 KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 1990 Variance - Favorable 1989 Budget Actual (Unfavorable) Actual Expenditures: Borough Assembly: Personnel services $ 16,800 $ 15,856 $ 944 $ 20,064 Fringe benefits - 241 (241) 1,396 Support, goods & services 46,000 28,328 17,672 44,256 Consultants 30,000 22,000 8,000 Total 92,800 66,425 26,375 65,716 Mayor's department: Personnel services 127,990 99,116 28,874 81,073 Fringe benefits 31,980 21,266 10,714 18,314 Support, goods & services 26,300 33,965 (7,665) 21,520 Capital outlay - 17,202 (17,202 6,139 Total 186,270 171,549 14,721 127,046 Clerk's department: Personnel services 115,520 120,115 (4,595) 97,380 Fringe benefits 32,770 25,888 6,882 29,668 Support, goods & services 85,900 93,738 (7,838) 62,655 Capital outlay 2,000 4,142 (2,142 3,968 Total 236,190 243,883 (7,693 193,671 Consolidation committee: Personnel services - - - 9 Fringe benefits - - - 4 Support, goods & services - - - 13,295 Total 13,308 Finance department: Personnel services 188,740 192,621 (3,881) 171,870 Fringe benefits 50,490 40,503 9,987 47,098 Support, goods & services 37,900 39,447 (1,547) 30,138 Allocated to projects (15,000) (17,099) 2,099 (41,330) Capital outlay 2,000 2,220 (220 710 Total 264,130 257,692 6,438 208,486 Legal services: Support, goods & services 19,550 22,202 (2,652) 14,903 Costs of litigation 115,600 102,831 12,769 200 Legal fees - 53,556 (53,556) 65,769 Court costs 418 Total 135,150 178,589 (43,439 81,290 Continued 46 EXHIBIT A -3 (Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 ' Assessing department: Personnel services Fringe benefits ' Support, goods & services Allocated to projects Capital outlay Total Community development department: Personnel services ' Fringe benefits Support, goods & services Allocated to projects Capital outlay Total Engineering /Facilities ' department: Personnel services Fringe benefits Support, goods & services Allocated to projects Capital outlay Total Health and sanitation: Emergency medical services Animal control Council on Alcoholism State Health Services Villages State Health Services Kana Women's Resource Crisis American Red Cross Alaska Legal Services Kodiak Baptist Mission Small World (Day Care) Special Olympics Health Center Support Senior Citizen Support Kodiak Respite Care Ambulance service Hospital contribution Total 1990 Variance - Favorable 1989 Budaet Actual (Unfavorable) Actual $139,070 42,640 26,050 207,760 203,680 66,170 42,460 (15,000) 8,000 305,310 225,200 50,910 69,800 (60,000) 1,950 287,860 32,450 32,000 60,000 25,800 8,600 34,900 2,000 10,000 60,000 18,000 3,000 3,500 20,000 3,000 50,000 363,250 $144,578 32,695 26,020 1,864 205,157 192,268 46,568 38,164 24,586 301,586 212,309 44,203 49,015 (82,151) 1,599 224,975 30,900 37,967 60,000 25,800 8,600 34,900 2,000 10,000 60,000 18,000 3,000 3,754 20,000 3,000 50,000 367,921 $ (5,508) 9,945 30 (1,864 2,603 11,412 19,602 4,296 (15,000) (16,586 3,724 12,891 6,707 20,785 22,151 351 62,885 1,550 (5,967) (254) (4,671 $ 119,198 31,896 28,095 (9,100) 4,168 174,257 156,664 33,361 101,992 (18,484) 7,717 281,250 278,297 59,247 39,730 (241,317) 950 136,907 30,930 32,478 56,300 28,690 9,560 34,900 2,000 13,850 60,000 21,000 3,000 2,004 20,000 3,000 50,000 149,400 517,112 47 Continued EXHIBIT A -3 (Continued Continued 48 KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 1990 Variance - Favorable 1989 Budget Actual (Unfavorable) Actual Data services: V Personnel services $ 173,440 $ 171,222 $ 2,218 $ 134,493 Fringe benefits 43,860 37,482v 6,378 36,043 Support, goods & services 49,660 48,051 1,609 51,511 Allocated to projects (115,000) (105,522)✓ (9,478) (118,243) Capital outlay 50,110 46,935 3,175 41,708 Total 202,070 198,168 V 3,902 145,512 Resource management: Personnel services 48,390 48,443 (53) 40,451 Fringe benefits 16,250 12,013 4,237 14,415 Support, goods & services 4,150 3,934 216 - Allocated to projects - (2,631 2,631 3,797 Total 68,790 61,759 7,031 58,663 General administration: Fringe benefits - 936 (936) - Support, goods & services 219,010 233,100 (14,090) 169,906 Audit expense 125,980 121,258 4,722 72,351 Contributions - - - 45,000 Capital outlay 16,000 16,330 (330 11,874 Total 360,990 371,624 (10,634 299,131 Culture and recreation: KMXT Public Radio 12,000 12,000 - 12,000 Historical Society 9,000 9,000 - 9,000 Summer Basketball 3,000 3,000 - 3,000 Crimestoppers 1,000 1,000 - 1,000 Kodiak Isle Sport Assn. 1,500 1,500 - 1,500 Kodiak Art Council 12,000 12,000 - 12,000 Village Libraries 18,000 18,000 - 19,680 Chiniak Public Library 3,000 3,000 - 3,280 City of Kodiak Library 58,000 58,000 - 58,000 Head Start 8,000 8,000 - 8,000 Kodiak College 34,000 34,000 - 34,000 Santa in the Village 1,000 1,000 - - Karluk IRA Council 20,000 20,000 - - Total 180,500 180,500 - 161,460 Building inspector's department: Support, goods & services 70,000 65,939 4,061 - Total 70,000 65,939 4,061 - Continued 48 t 1 1 1 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 Switchboard /Word processing: Personnel services Fringe benefits Support, goods & services Total Emergency preparedness: Support, goods & services Capital outlay Total Community and Regional Affairs Liaison: Support, goods & services Allocated to projects Total Education support: School support - Contributions to scholarship foundation Audit expense Total Economic development: General services - Fringe benefits Support, goods & services Contributions - Chamber of Commerce Kodiak Convention Bureau Total Total expenditures EXHIBIT A -3 (Continued 1990 Variance - Favorable 1989 Budget Actual (Unfavorable) Actual $ 53,470 13,600 1,490 68,560 6,000 14,000 20,000 $ 58,112 13,068 509 71,689 5,016 3,738 8,754 5,700 2,586 5,700 2,586 $(4,642) 532 981 (3,129 984 10,262 11,246 3,114 3,114 $ 52,621 15,368 1,603 69,592 698 27,659 28,357 5,156 (605 4,551 25,000 25,000 - - 36,500 29,150 7,350 28,997 61,500 54,150 7,350 28,997 638 30,000 28,244 1,756 30,179 5,000 5,000 - - 15.000 15,000 - - 50,000 48,244 1,756 30,817 3,166,830 3,081,190 85,640 2,626,123 49 Continued EXHIBIT A-3-(Continued KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 Operating transfers out: Special Revenue - Education Mental Health Buildings and grounds Capital Projects - Various Borough projects State Capital Grants Debt Service - Other Enterprise Funds - Sanitary landfill fund Hospital Total F 50 1990 Variance - Favorable 1989 Budget Actual (Unfavorable) Actual $2,100,000 $2,100,000 $ - $2,100,000 140,000 140,000 - 140,000 450,000 450,000 - 446,100 10,000 10,000 - 148,390 - - - 13,350 - 9,102 (9,102) 8,597 - - - 140,000 13,000 13,000 - 2,713,000 2,722,102 (9,102 2,996,437 S5,879,830 S5,8�3,292 S76,538 55,622,560 50 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 This 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, 1990 WITH COMPARATIVE TOTALS FOR 1989 LIABILITIES AND FUND BALANCES (DEFICITS Liabilities: Accounts payable fire S 1,862 S 67 Road $1,422 S 68 Women's Monashke District Women's Bay View - Area 1 B_ ay_ Bay One Bay Road ASSETS - - - - Equity in central treasury S 24,607 S - S - S - $7,826 $ - Temporary investments 350,000 - - - - - Other cash balances - - - - - - Receivables: - 300 - - State of Alaska - - - - - - Federal Government - - - - - - Land sales contract, due 5,803 2.637 1,293 within one year - - - - - - Exxon reimbursement - - - - - - Accrued interest 6,628 - - - - - Other - - - - - - Allowance for doubtful receivables - - - - - - Due from other funds - - - - - - Inventories - - - - - - Prepaids 14,189 11,369 - - - - Land sales contracts receivable, - - Unreserved - due after one year - - - - - - Other - $395,424 S11.369 S S �� $7,826 S LIABILITIES AND FUND BALANCES (DEFICITS Liabilities: Accounts payable S 413 S 1,862 S 67 S - $1,422 S 68 Salaries payable 1,163 - - - - - Payroll taxes accrued and withheld - - - - - - Employee benefits accrued and withheld - - - - - - Customer deposits - 300 - - - - Deferred and unrealized revenues - - - - - - Due to other funds 5,803 2.637 1,293 774 Total liabilities 1,576 7,965 2,704 1,293 1,422 842 Fund balances (deficits): Reserved for encumbrances - 400 - 645 - - Health Insurance - - - - - - Fiscal year 1991 PL-874 - - - - - - Reserved for fuel inventory - - - - - - Unreserved - Designated for subsequent year expenditures - - - - - - Undesignated - 393,848 3,004 (2.704 (1.938 6,404 (842) Total fund balances (deficits) 393,848 3,404 (2,704 (1,293 6,404 (842) $395,424 511.369 $ - 57,826 S - 52 EXHIBIT B-1 federal and State Grant Programs Building Totals Mental Health and OR Spill Center Energy Day Care Education Land Sales Grounds Clearwo 1990 1989 f - $ - S 98,599 S - $ 3,758 S 134,790 S 274,677 - 1,930,886 - - 2,280,886 1,776,382 100 - - 38,789 - - - 38,889 33,096 289,993 10,413 29,355 900,877 - - 156,751 1,387,389 1,261,055 - - - 61,094 - - - 61,094 - _ - 245,276 k - - 245,276 343,529 - - - - 378,010 _ - 36,285 - - - 42,913 62,401 113,432 - - 4,285 - - 1,030 118,747 186,841 (31,436) - - - (25,000) - - (56,436) (57,361) - - - 2,444,008 - - - 2,444,008 2,418,178 - - - 207,387 - - - 207,387 271,776 41,410 - - - - 360,377 - 427,345 - _ - - - 1,368,020'/ - - 1,368,020 1,471,044 239 5413,499 $10,413 $29,355 53,656,440 53,654,066 5360 ,377 5161,539 58,700,308 58,419,867 S 27,241 S - $14,144 S 460,658 S - S 8,123 5 - S 513,998 S 798,098 11,736 - - 560,673 - - - 573,572 669,798 - - - 728,621 - - - 728,621 678,001 - - - 89,550 - - - 89,550 110,856 _ _ _ - 300 300 - - - - 1,613,298 - 161,539 1,774,837 1,817,904 101,892 10,413 15,211 185,967 - 89,812 - 413,802 361,123 140,869 10,413 29,355 2,025,469 1,613,298 97,935 161,539 4,094,680 4,436,080 460 - - 44,807 - 772 - 47,084 100,841 - - - 85,937 - - - 85,937 82,952 - - - 200,000 - - - 200,000 - - - - 207,072 - - - 207,072 - - - - 760,000 - - - 760,000 444,114 272,170 - - 333,155 2,040,768 261,670 - 3,305,535 3,355,880 272,630 - - 1,630,971 2,040,768 262,442 - 4,605,628 3,983,787 $413,499 510,413 $29,355 53,656,440 53,654,066 5360,377 $161,539 58,700,308 58,419,867 53 Expenditures: KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS Planning and community COMBINING STATEMENT OF REVENUES, EXPENDITURES development AND CHANGES IN FUND BALANCES (DEFICITS) Health and sanitation JUNE 30, 1990 Education support WITH COMPARATIVE TOTALS FOR 1989 - - General administration Fire and Road Service Districts Fire oil spill cleanup Road - - Women's Moneshka District Women's Bay View Area 1 Bay Bay One Bey_ Road Revenues: Property taxes $114,577 S 31,340 S 18,747 $50,185 $37,598 S 3,314 State sources 8,039 618 3,707 9,222 15,956 983 Federal sources - 109.901 27.851 _ 45.824 63.419 Land sale proceeds 6,240 Excess (deficiency) of revenues 57.004 11.807 2( 3,370 Exxon reimbursement - (1.9 43) - - - Licenses, permits, fees and Operating transfers in - other local revenues 7,545 7,700 - - 20,000 - Investments and property 36.744 - " Total Revenues 166,905 39.658 22,454 59.407 73.554 4.297 Expenditures: Planning and community development _ Health and sanitation Education support - - - General administration 109 27,851 oil spill cleanup - - - - - - Capital outlay: - Capital improvements Services district maintenance - - 45,824 63,419 79,045 6,240 General Total expenditures 109.901 27.851 _ 45.824 63.419 79,045 6,240 Excess (deficiency) of revenues 57.004 11.807 2( 3,370 (4,012 (5,4 (1.9 43) over expenditures Operating transfers in - - - - 20,000 - Operating transfers out (2,067 2( 0,000 - Net operating transfers (2.067 2_( 0,000 - 20,000 - Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out 54,937 (8,193) (23,370) (4,012) 14,509 (1,943) Fund balances (deficits) at beginning of year 338,911 11,597 20,666 2,719 (8,105) 1,101 Adjustments to reserve for fuel inventory - Fund balances (deficits) at end of year $393,848 S 3,404 S (2,704 $0,293 S 6,404 $ (842 54 EXHIBIT B-2 Federal and State Grant Programs Totals Mental Building Health and OR Spill Center Energy Day Care Education Land Sales Grounds Cleamip 1990 1989 $ - S - S - S - S - S - S - S 255,761 S 210,272 931,924 11,116 181,572 15,789,269 (21,980) 1,785,804 18,716,230 18,798,869 ' 2,343,484 2,343,484 1,005,261 370,886 370,886 377,586 _ _ _ _ - - 187,072 187,072 1,013,079 ' 415,991 68,847 _ _ 194.270 65,658 1 148,130 - 292,823 2,630 519,524 740,814 672,475 514,792 1,416,762 11,116 181,572 18,327,023 562,694 292,823 1,975,506 23,133,771 22,592,334 - 11,116 - - 25,694 - - 36,810 28,203 1,626,872 - 181,744 - - - - 1,808,616 1,601,954 16,452,193 _ 16,452,193 15,698,012 ' 617,400 755,152 733,752 _ 1,975,506 1,975,506 1,083,905 39,083 _ 39,083 44,633 _ _ 194,528 119,596 27,713 1,626,872 11,116 181,744 16,452,193 64,777 617,400 1,975,506 21,261,888 19,337,768 ' 497,917 (324,577 1,871,883 3,254,566 (210,110 - (172 1,874,830 140,000 - - 2,100,000 - 450,000 - 2,710,000 2,991,640 (4,026 - - (3,623,144 (313,790 - (3,963,027 (6,741,075 135,974 (1,523,144 (313,790 450,000 (1,253,027 (3,749,435 (74,136) - (172) 351,686 184,127 125,423 - 618,856 (494,869) ' 346,766 - 172 1,276,300 1,856,641 137,019 - 3,983,787 4,469,386 - - - 2,985 - - - 2,985 9,270 $2,040,768 S 262,442 S S 4,605,628 $ 3,983,787 S 2S 2� S S - $ 1,630,971 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, 1990 WITH COMPARATIVE TOTALS FOR 1989 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 of revenues over expenditures Operating transfers in Operating transfers out Net operating transfers Excess of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year 338.911 303.015 $ 393,848 $338,911 56 1990 Variance - Favorable 1989 Budget Actual (Unfavorable) Actual $107,940 $114,577 $ 6,637 $130,341 8,000 8,039 39 8,787 6,000 7,545 1,545 6,300 24.000 36.744 12.744 19.980 145.940 166.905 20.965 165.408 54,980 55,102 (122) 48,577 7,000 4,415 2,585 3,720 18,210 14,165 4,045 11,777 61,750 35,004 26,746 34,197 4.000 1.215 2.785 27,713 145.940 109.901 36.039 125.984 57.004 57.004 39.424 _ - - 1,472 (2,067) (2.067 (5.000 - (2,067 (2.067 (3.528 54,937 $54,937 35,896 338.911 303.015 $ 393,848 $338,911 56 ODIAK ISLAND BORO SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - FIRE WOMEN'S BAY STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 EXHIBIT B -4 57 1990 Variance - Favorable 1989 Budget Actual (Unfavorable) Actual Revenues: Property taxes $ 29,000 $ 31,340 $ 2,340 $ 5,944 State sources - shared revenue 600 618 18 993 Licenses, permits, fees and other local revenues 7.200 7.700 500 6.806 Total revenues 36.800 39.658 2.858 13.743 Expenditures - general administration Volunteers 800 - 800 - Fringe benefits 4,000 2,503 1,497 - Support costs 26,150 24,363 1,787 18,770 Communications 600 542 58 420 Supplies and materials 750 443 307 - Community activities 100 - 100 - Capital outlay 4.400 - 4,400 - Total expenditures 36.800 27.851 8.949 19,190 Excess (deficiency) of revenues over expenditures - 11.807 11.807 (5,447 Operating transfers out (20.000 (20.000 - - Deficiency of revenues and operating transfers in over expenditures $(20,000) (8,193) $11,807 (5,447) Fund balance at beginning of year 11.597 17.044 Fund balance at end of year 3,404 $11,597 57 EXHIBIT B -5 KODIAK ISLAND BOROUG SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD MONASHKA BAY STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCE (DEFICIT) - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 Revenues: Property taxes State sources - shared revenue Total revenues Expenditures - capital improvements - service district maintenance: Salaries Snow removal Road grading Support -goods & services Total expenditures Excess (deficiency) of revenues over expenditures Fund balance at beginning of year Fund balance (deficit) at end of year - 287 (287) 539 24,500 24,495 5 9,286 17,500 20,920 (3,420) 4,451 - 122 (122 515 42.000 45.824 (3.824 14.791 $( 20,000) (23,370) $0,370) 7,570 20.666 13.096 ( 2,704) $20,666 58 1990 Variance - Favorable 1989 Budget Actual (Unfavorable) Actual $ 18,000 $ 18,747 $ 747 $18,103 4.000 3.707 293) 4.258 22.000 22.454 454 22.361 - 287 (287) 539 24,500 24,495 5 9,286 17,500 20,920 (3,420) 4,451 - 122 (122 515 42.000 45.824 (3.824 14.791 $( 20,000) (23,370) $0,370) 7,570 20.666 13.096 ( 2,704) $20,666 58 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD DISTRICT 1 STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE (DEFICIT) - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 1990 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 Deficiency of revenues over expenditures Fund balance at beginning of year Fund balance (deficit) at end of year Variance - Favorable Budget Actual (Unfavorable) $48,000 $50,185 $ 2,185 8.790 9.222 432 56.790 59.407 2.617 EXHIBIT B -6 1989 Actual $ 16,927 10.785 27.712 2,000 5,055 (3,055) 4,293 8,000 7,787 213 11,919 38,000 47,894 (9,894) 24,694 8,000 2,399 5,601 4,044 790 284 506 854 56.790 63.419 (6.629 45.804 (4,012) 2.719 $( 4,012) (18,092) $( 1.293) 20.811 2,719 59 EXHIBIT B -7 KODIAK ISLAND BOROUG SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD WOMEN'S BAY STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE (DEFICIT) - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 Revenues: Property taxes State sources - shared revenue Licenses, permits, fees Total revenues Expenditures - capital improvements - service district maintenance: Staff salaries Snow removal Contracted services Support -goods & services Repairs and maintenance Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Operating transfers in Excess of revenues and operating transfers in over expenditures and operating transfers out Fund deficit at beginning of year Fund balance (deficit) at end of year 1,000 1990 641 1,215 9,900 22,322 Variance - 40,235 41,400 46,224 Favorable 1989 Budget Actual (Unfavorable) Actual - $ 37,600 $ 37,598 $ (2) $ 35,706 16,000 15,956 (44) 18,109 65.500 20.000 20.000 10.000 53.600 73.554 19.954 63.815 1,000 359 641 1,215 9,900 22,322 (12,422) 40,235 41,400 46,224 (4,824) 15,199 1,200 - 1,200 195 10,000 10,140 (140) - 2.000 2.000 65.500 79.045 (13.545 56.844 (11.900 (5.491 6.409 6.971 20.000 20.000 8,100 14,509 6,409 6,971 (8.105 (15.076 6,404 (8,105) 60 EXHIBIT B -8 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD BAY VIEW STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE (DEFICIT) - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 1990 Revenues: Property taxes State sources - shared revenue Total revenues Expenditures - capital improvements - service district maintenance: Staff salaries Snow removal Road grading Support -goods & services Total expenditures Excess (deficiency) of revenues over expenditures Fund balance (deficit) at beginning of year Fund balance (deficit) at end of year 1989 Actual $3,251 914 4,165 - 292 (292) 174 4,000 3,895 105 1,344 - 2,053 (2,053) 607 - - 32 4.000 6.240 (2.240 2.157 (1,943) $(1.943) 2,008 1.101 842) (907 1 101 61 Variance - Favorable Budget Actual (Unfavorable) $3,100 $ 3,314 $ 214 900 983 83 4.000 4.297 297 1989 Actual $3,251 914 4,165 - 292 (292) 174 4,000 3,895 105 1,344 - 2,053 (2,053) 607 - - 32 4.000 6.240 (2.240 2.157 (1,943) $(1.943) 2,008 1.101 842) (907 1 101 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, 1990 WITH COMPARATIVE TOTALS FOR 1989 Revenues: State sources: Alaska Youth Initiative Developmental Disability Program Health, Social and Community Services Program Division of Family and Youth Services 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 Total expenditures Deficiency of revenues over expenditures Operating transfers in Operating transfers out Net operating transfers Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year 1,428,890 1,416,762 (12,128 1,296,280 1990 106,058 28,850 24,261 4,589 Variance - 129,980 3,000 65,570 Favorable 1989 Budget Actual (Unfavorable) Actual 166,380 (34,980 1,715,580 1,626,872 $ 105,540 $ 105,127 $ (413) $ 106,462 261,600 261,600 - 234,500 552,600 552,600 - 475,300 15,000 9,165 (5,835) - 2,000 3,432 1,432 45,050 204,380 208,346 3,966 196,076 211,370 205,823 (5,547) 224,890 1,400 1,822 422 220 60,000 60,000 - 60,000 15,000 8,847 (6,153 10,377 1,428,890 1,416,762 (12,128 1,296,280 1,190,222 106,058 28,850 24,261 4,589 132,980 129,980 3,000 65,570 62,049 3,521 60,500 53,980 6,520 131,400 166,380 (34,980 1,715,580 1,626,872 88,708 (286,690 (210,110 76,580 140,000 140,000 - - (4,026 (4,026 140,000 135,974 (4,026 S (1� 4� ) (74,136) S 72,554 346,766 S 272 .630 1,352,875 996,353 22,550 123,676 71,166 18,454 136,806 1,369,005 (16,130 144,068 144,068 127,938 218,828 8 346.766 62 KODIAK_ BOROUGH EXHIBIT B -10 SPECIAL REVENUE FUNDS STATE GRANT PROGRAMS - MENTAL HEALTH CENTER - SCHEDULE OF EXPENDITURES STATEMENT OF REVENUES EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 63 1990 Variance - Favorable Budget Actual (Unfavorable) Expenditures - Alaska Youth Initiative: Personnel $ 76,030 $ 76,832 $ (802) Travel 50 10 40 Facility 9,820 10,033 (213) Supplies 11,390 10,290 1,100 Equipment 800 876 (76) Other 7,450 7,273 177 105,540 105,314 226 Expenditures - Developmental Disability Program (06- 9019): Personnel 207,650 192,056 15,594 Travel 1,000 1,000 - Facility 22,370 23,307 (937) Supplies 23,800 21,692 2,108 Equipment 25,000 24,015 985 Other 43,200 83,090 (39,890 323,020 345,160 (22,140 Expenditures - Health, Social and Community Services Program (06- 0208): Personnel 1,008,850 920,708 88,142 Travel 27,800 23,251 4,549 Facility 97,420 94,519 2,901 Supplies 28,500 28,501 (1) Equipment 30,200 24,879 5,321 Other 79,250 75,375 3,875 1,272,020 1,167,233 104,787 Expenditures - Division of Family and Youth Services: Personnel 3,750 626 3,124 Facility 3,370 2,121 1,249 Supplies 1,880 1,566 314 Equipment 4,500 4,210 290 Other 1,500 642 858 15,000 9,165 5,835 Total Expenditures $1,715 $1,626,872 88,708 63 EXHIBIT B -11 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FEDERAL AND STATE GRANT PROGRAMS - COSTAL MANAGEMENT PROGRAM STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 1990 Variance - Favorable Budget Actual (Unfavorable) Revenues: State sources Expenditures - planning and community development: Planning and zoning Excess of revenues over expenditures Fund balance at beginning of year Fund balance at end of year $ 35,000 $11,116 S(23,884) 35.000 11.116 23.884 1989 Actual $ 22,180 22.180 i 64 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, 1990 WITH COMPARATIVE TOTALS FOR 1989 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 EXHIBIT B -12 1990 Variance - Favorable 1989 Budget Actual (Unfavorable) Actual $ 239,330 $181,572 $(57,758) $232,720 239,330 _181,744 57,586 232,949 S - (172) 172) (229) 172 401 172 65 66 , EXHIBIT 0-13 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS EDUCATION ' STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 ' WITH COMPARATIVE TOTALS FOR 1989 1990 , Variance - Favorable 1989 Budget Actual (Unfavorable) Actual Revenues: State sources $15,115,608 515,789,269 S 673,661 $16,736,645 ' Federal through State sources 1,822,170 1,580,638 (241,532) 1,204,971 Federal direct sources 561,013 762,846 201,833 609,650 Licenses, permits, fees and other local revenues: Food sales 123,300 126,876 3,576 124,004 ' Pupil activities 7,000 6,583 (417) 6,260 Other local revenues 49,62 60,81 11.186 63.005 Total revenues 17,678.716 18.327.023 648.307 18.744.535 , Expenditures: Education support: Regular instruction 7,122,738 6,947,004 175,734 6,528,235 Vocational education instruction 831,179 807,313 23,866 739,308 ' Correspondence study instruction 108,321 114,600 (6,279) 133,129 Special education instruction 1,954,870 1,762,426 192,444 1,509,040 Gifted and talented instruction 146,586 144,248 2,338 141,350 Bilingual /bicultural instruction 209,112 204,855 4,257 201,614 Support services - pupils 890, 011 838,060 51,951 834,792 , School administration 1,040,090 1,021,437 18,653 1,024,641 District administration 1,020,668 934,405 86,263 892,293 Operation and maintenance 2,519,144 2,565,464 (46,320) 2,589,257 Food services 256,600 268,143 (11,543) 263,807 ' Community services 14,844 13,232 1,612 19,464 Pupil activities 415,524 385,948 29,576 379,8 Pupil transportation 450.650 445.058 5.592 441.192 Total expenditures 16.980.337 16.452.193 528.144 15.698.012 ' Excess of revenues over expenditures 698.379 1.874.830 1.176,451 3.046.523 Operating transfers in 2,164,785 2,100,000 (64,785) 2,100,000 Operating transfers out (3.076.621 (3.623.144 (546,523 (4,998.365 ' Net operating transfers (911.836 (1,523,144 (611.308 (2.898,365 r Excess (deficiency) of revenues and operating transfers in t over expenditures and operating transfers out SS (2� 351,686 $ 565,143 148,158 Fund balance at beginning , of year 1.276,300 1,118,872 Adjustment to reserve for fuel inventory 2.985 9.270 Fund balance at end of year $ 1,6� 3� S 1.276.300 , 66 EXHIBIT B -14 Expenditures: Planning and community development - Land management Capital improvements: General - Survey and appraisal Total expenditures Excess of revenues over expenditures Operating transfers in Operating transfers out Net operating transfers Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year 21,000 25,694 KODIAK ISLAND BOROUGH 70.000 39.083 ' 44,633 SPECIAL REVENUE FUNDS 26.223 50.656 313.790 497.917 LAND SALES 528.972 - ' STATEMENT OF REVENUES, EXPENDITURES, AND - (1,737,710 CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 ' WITH COMPARATIVE TOTALS FOR 1989 ' 1990 Variance - ' Budget Actual Favorable (Unfavorable) 1989 Actual Revenues: State Sources - Grants $ - $ (21,980) $(21,980) $ 21,980 ' Land sale proceeds 309,440 370,886 61,446 377,586 Licenses, permits, fees and other local revenues: Penalty and interest - 200 200 492 ' Permit fees 10,000 10,000 10,000 Gravel sales 55,350 55,358 8 24,422 ' Other - 374,790 100 100 39,774 - 434,480 414,564 Investment income 30.000 148.130 118.130 145.148 Total revenues 404.790 562.694 157.904 579.628 Expenditures: Planning and community development - Land management Capital improvements: General - Survey and appraisal Total expenditures Excess of revenues over expenditures Operating transfers in Operating transfers out Net operating transfers Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year 21,000 25,694 (4,694) 6,023 70.000 39.083 30.917 44,633 91.000 64.777 26.223 50.656 313.790 497.917 184.127 528.972 - - - 300,000 (313,790 (313.790 - (1,737,710 (313.790 (313,790 - (1.437.710 184,127 $184,127 (908,738) 1,856.641 2,765,379 $2.040.768 $ 1,856,641 MA EXHIBIT B -15 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, 1990 WITH COMPARATIVE TOTALS FOR 1989 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 Deficiency of revenues over expenditures Operating transfers in 1990 Variance - Favorable 1989 Budget Actual (Unfavorable) Actual $ 272,860 $ 277,466 $ 4,606 $ 278,962 - 15,357 15,357 - - - 325 272.860 292.823 19.963 279.287 413,850 258,100 27,500 15,000 17.150 731.600 315,408 98,442 248,967 9,133 18,811 8,689 15,015 (15) 19.199 (2.049 617.400 114.200 315,885 230,828 48,677 15,589 5.312 616.291 (458.740 450.000 (324.577 134.163 450.000 Excess of revenues and operating transfers in over expenditures (8,740) 125,423 $134,163 Fund balance at beginning of year 137.019 Fund balance at end of year $ 262,442 (337.004 446.100 109,096 27.923 137,019 68 KODIAK ISLAND BOROUGH OIL SPILL CLEANUP STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PROJECT TO DATE JUNE 30. 1990 EXHIBIT B -16 69 Project Project Variance - to date 1989 1990 to Date Favorable Budget Actual Actual Actual (Unfavorable) Revenues: Exxon Reimbursements $2,000,000 $1,013,079 S 187,072 $1,200,151 S (799,849) State sources Department of Environmental Conservation grants 2,560,000 70,826 1,772,204 1,843,030 (716,970) Department of Community and Regional Affairs grants 13,600 - 13,600 13,600 - Other sources - 2.630 2.630 2.630 Total Revenues 4.573.600 1.083.905 1.975,506 3.059.411 (1.514,189 Expenditures: Personal services 555,170 156,386 295,045 451,431 103,739 Fringe benefits 9,330 18,640 40,636 59,276 (49,946) Support goods and services 2,062,600 887,086 552,274 1,439,360 623,240 Capital outlay - 18,840 10,473 29,313 (29,313) Legal fees 10,000 2,953 99,115 102,068 (92,068) Disbursements to villages 1.936.500 - 977.963 977,963 958.537 Total expenditures 4.573,600 1,083.905 1.975,506 3,059,411 1.514.189 Excess of revenues over expenditures f - - S S - Fund balance at beginning year " Fund balance at end of year S 69 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, 1990 WITH COMPARATIVE TOTALS FOR 1989 Totals School Bonds Other 1990 1989 ASSETS Cash and investments: Equity in central treasury $ - $151,675 $ 151,675 $ 267,757 Temporary cash investments 6,846,042 - 6,846,042 4,530,522 Cash with fiscal agent 397,585 - 397,585 648,922 Receivable from State of Alaska - - - 448,618 Accrued interest receivable 91,344 - 91,344 50,217 Due from other funds 168,270 - 168,270 - S7,50 S151,675 S7,654,916 $5,946,036 LIABILITIES AND F UND BALANCES Accounts payable $ 1,260 $ - $ 1,260 $ - Due to other funds 818,236 - 818,236 - Other - _ _ 307 819,496 - 819,496 307 Fund balances - designated for subsequent year expenditures 6,683,745 151,675 6,835,420 5,945,729 $7,5� S151,675 57,6 916 S5,9i6,036 72 73 EXHIBIT C -2 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 Totals School Bonds Other 1990 1989 Revenues: Investments and property - Interest income S 455,201 $ - S 455,201 S 305,707 Gain on exchange 33,246 - 33,246 - Miscellaneous 2,321 2.321 Total revenues 490.768 - 490,768 305,707 Expenditures - debt service: Principal 2,260,833 - 2,260,833 5,135,834 Interest 909,334 - 909,334 1,396,688 Fiscal agent fees 54,086 - 54,086 66,030 Other 15,163 15.163 (13,735 Total expenditures 3,239,416 - 3,239.416 6,584,817 Deficiency of revenues over expenditures (2,748,648 - (2.748.648 (6,279,110 Other financing sources (uses): Proceeds of bond sales - - - 10,000,000 Accrued interest - - - 94,265 Bond premium - - - 20,613 Purchase of restricted escrow - - - (9,865,100) Underwriters discount - - - (134,000) MBIA insurance - - - (62,000) Other (53,778 Total other financing sources - _ Operating transfers in: General Fund - 9,102 9,102 8,597 Special Revenue Funds: Mental Health Center 4,026 4,026 Education 3,623,144 - 3,623,144 4,996,378 Fire Service District Area 1 - 2,067 2,067 - Total operating transfers in 3.623.144 15,195 3.638,339 5.004,975 Operating transfers out: Special Revenue Fund: Fire Service District Area 1 - - - 1,472 Mental Health Center - 4.068 Total operating transfers out - - 5.540 Net operating transfers 3.623.144 15.195 3,638.339 4.999.435 Excess (deficiency) of revenues, other financing sources and operating transfers in over expenditures, other financing uses and operating transfers out 874,496 15,195 889,691 (1,279,675) Fund balances at beginning of year 5,809,249 136,480 5,945,729 7.225.404 Fund balances at end of year S 6 683,745 5151,675 S 6,835,420 $ 5.945,729 73 EXHIBIT C -3 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS SCHOOL BONDS STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 Total other financing sources Operating transfers in: Education Special Revenue Fund Total operating transfers in Excess (deficiency) of revenues, other financing sources and operating transfers in over expendi- tures and other financing uses Fund balance at beginning of year Fund balance at end of year 3,147,220 3,623,144 475,924 4,996,378 3,147,220 3,623,144 475,924 4,996,378 S (802,780 874,496 $ 1,677,276 (1,282,732) 5,809,249 S 6,683,745 7,091,981 $ 5,809,249 74 1990 Variance - Favorable 1989 Budget Actual (Unfavorable) Actual Revenues: Investments and property - Interest income $ 200,000 $ 455,201 $ 255,201 $ 305,707 Gain on exchange - 33,246 33,246 - Miscellaneous - 2,321 2,321 Total revenues 200,000 490,768 290,768 305,707 Expenditures: Debt service - Principal 2,260,840 2,260,833 7 5,135,834 Interest 1,016,230 909,334 106,896 1,396,688 Fiscal agent fees 140,000 54,086 85,914 66,030 Other 15,600 15,163 437 (13,735) Contingencies 717,330 - 717,330 Total expenditures 4,150,000 3,239,416 910,584 6,584,817 Deficiency of revenues over expenditures (3,950,000 (2,748,648 1,201,352 (6,279,110 Other financing sources (uses): Proceeds of bond sales - - - 10,000,000 Accrued interest - - - 94,265 Bond premium - - - 20,613 Purchase of restricted escrow - - - (9,865,100) Underwriters discount - - - (134,000) MBIA insurance - - - (62,000) Other - - - (53,778 Total other financing sources Operating transfers in: Education Special Revenue Fund Total operating transfers in Excess (deficiency) of revenues, other financing sources and operating transfers in over expendi- tures and other financing uses Fund balance at beginning of year Fund balance at end of year 3,147,220 3,623,144 475,924 4,996,378 3,147,220 3,623,144 475,924 4,996,378 S (802,780 874,496 $ 1,677,276 (1,282,732) 5,809,249 S 6,683,745 7,091,981 $ 5,809,249 74 EX C -4 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS OTHER STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 75 1990 Variance - Favorable 1989 Budget Actual (Unfavorable) Actual Operating transfers in: General fund $ 9,000 $ 9,102 $ 102 $ 8,597 Special revenue funds: Mental Health Center 4,000 4,026 26 - Fire Service District Area 1 2,000 2,067 67 Total operating transfers in 15,000 15,195 195 8,597 Operating transfers outs: General fund 9,000 - 9,000 - Special revenues funds: Mental Health Center 4,000 - 4,000 4,068 Fire Service District Area 1 2,000 - 2,000 1,472 Total operating transfers out 15,000 - 15,000 5,540 Net operating transfers �� 15,195 S15.195 3,057 Fund balance at the beginning of year 136,480 133,423 Fund balance at the end of year S151,675 S136,480 75 CAPITAL PROJECTS FUNDS This fund was created to account for all resources used for the acquisition of designated fixed assets by a governmental unit except those financed by special assessment and enterprise funds. VARIOUS BOROUGH PROJECTS This fund accounts for a variety of capital projects not accounted for in another fund, including projects financed by the State of Alaska Municipal Aid Program. SCHOOL BOND IMPROVEMENTS This fund accounts for the proceeds of the Borough general obligation bonds issued for the construction of schools. SCHOOL EQUIPMENT AND FURNISHINGS This fund accounts for money transferred to the Kodiak Island Borough School District from other Capital Projects Funds for the acquisition of school equipment and furnishings. STATE CAPITAL GRANTS ' This fund accounts for capital grant monies received from the State of Alaska for the construction of various projects. SCHOOL MAJOR MAINTENANCE This fund accounts for money transferred from the Land Sales Fund for the major repairs and maintenance of school buildings. 1 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET JUNE 30.1990 WITH COMPARATIVE FIGURES FOR 1989 ASSETS Cash and investments: Equity in central treasury Temporary cash investments Other cash and cash equivalents Receivables: Other State of Alaska Accrued interest Due from other funds Various Borough School Bond Projects Improvements $ 101,141 $101,409 481,556 - 15,794 1.046.071 $1.6_ 4� $101,409 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable Retainages payable Deferred obligation demand General obligation demand bonds payable Due from other funds Total liabilities Fund balances: Reserved for encumbrances Unreserved - designated for subsequent year expenditures Undesignated Total fund balances (deficit) $ 2,033 $ 1,191 - 3.224 34,828 - 1,606,510 - - 101.409 1.641.338 101.409 $1,6� $101,409 78 EXHIBIT D -1 School Equipment and Furnishings State School Capital Major Grants Maintenance Totals 1990 1989 17.697 $ 17,697 17.697 17.697 $ 17,697 $ 208,575 $ 696,363 $1,107,488 $ 270,326 - 487,631 969,187 2,929,204 - - 4,641 - 9,282 89,147 - 89,147 211,606 - 1,193 16,987 11,648 1,063,768 234,187 $ 29�� $1,1�187 $3,246,577 $3,670,894 $ - $ - $ 2,033 $ 241,987 1,431 - 2,622 87,932 608,266 - 608,266 774,779 550,000 163.807 609,697 - 612,921 1,818,505 59,200 - 94,028 537,229 - - 1,606,510 642,851 (371,175 1,185,187 933,118 672,309 (311,975 1,185,187 2,633,656 1,852,389 $ 29_� $1,185 $3,246,577 $3,670,894 VW KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES (DEFICITS) YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 Revenues: State sources Licenses, fees, permits and other local revenues Investments and property Insurance proceeds Asbestos settlement Total revenues Expenditures: Capital improvements: Schools General 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 sources over expenditures and other financing uses Fund (deficit) balances at beginning of year Fund balances (deficit) at end of year Various Borough School Bond Projects Improvements $ 185,998 $ 102,870 77,676 - 8.316 288.868 85.992 - 278,700 208.829 208.829 278.700 80.039 (192.708 - 550,000 935,500 80,000 - (400,000 935,500 230,000 1,015,539 37,292 625.799 64,117 $1,641,338 $ 101,409 80 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 EXHIBIT D -2 School Equipment State School Totals and Capital Major Furnishings Grants Maintenance 1990 1989 $ 85,500 $ 391,732 $ - $ 663,230 $ 957,200 - - - 11,083 5,684 95,147 281,377 294,512 - - - 366,904 8.316 _ 647.480 85,500 397,416 95,147 952,923 2,277,179 122,913 306,214 - 707,827 4,825,007 - - - 208,829 2,408.673 122,913 306,214 - 916,656 7,233,680 (37,413 91,202 95,147 36,267 (4,956,501 - - - 550,000 2,200,000 - 1,015,500 2,705,027 - (340,500 (80,000 (820,500 (1,350,000 (340,500 (80,000 745,000 3,555.027 (37,413) (249,298) 15,147 781,267 (1,401,474) 55.110 (62,677 1,170,040 1,852,389 3,253.863 17,697 $(311,975) $1,1�,187 $2,6�656 1,852,389 81 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS YEAR ENDED JUNE 30, 1990 Other School Projects A_wropriations 44-200 Asbestos Abatement Grant 70,000 Transfers (To) From (70,000) - Project Prior 1990 Projects Funds Appropriation School Buildings - 33,090 44 -215 Painting, Akhiok School 45 -201 Roof, East Elementary $ - $ - S 400,000 S - S 400,000 45 -211 Hi Sch (Kod) Noise Abamlt 10,000 - - - 10,000 45 -212 Landscaping - Port Lions 15,000 - - - 15,000 45 -214 School Drawings - as Built 15,000 - - - 15,000 45-285 Peterson Elementary 594,860 - (85,000) - 509,860 45 -287 Old Harbor School 2,206,870 20,000 65,000 80,000 2,371,870 45 -292 Old Harbor School Fencing - - 20,000 - 20,000 44 -203 Roof, East Elementary - 400,000 (400,000) - Other School Projects 44-200 Asbestos Abatement Grant 70,000 - (70,000) - - 44 -202 Work of Art - Auditorium 33,090 - - - 33,090 44 -215 Painting, Akhiok School - - - 25,500 25,500 44 -216 Painting, Chiniak School - - - 20,000 20,000 44 -217 Painting, Karluk School - - 25,000 25,000 44 -253 Asbestos Removal Program 80,000 - (5,000) - 000 44 -261 Kodiak Hi School Lockers 35,000 - - 70,000 ' ` U5 ;,ouu 44 -262 Painting - Main Elementary 35,000 - - - 35,000 44 -280 School Pedestrian Project - - 34,701 - 34,701 44 -340 Middle Bay Paving 590,230 - - - 590,230 44 -341 School Site Acquisition 400,000 - - - 400,000 44 -342 School Improvements - Var. 20,000 - - - 20,000 47 -200 Asbestos Abatement Grant - - 70,000 15,500 85,500 47 -280 School Pedestrian Project - 34,701 (34,701) - - N/A School Equipment 565,892 119,790 - - 685,682 Other Structures 44 -183 KIB (Kana) Apartments - 10,000 8,000 - 18,000 44 -187 Hospital Construction - - 123,810 - 123,810 44 -315 Bayside Fire Equipment 30,000 - - - 30,000 47 -177 Chiniak Emergency Bldg. 100,000 - - - 100,000 47 -183 KIB (Kana) Apartments - 100,000 17,000 - 117,000 47 -187 Hospital Construction 923,810 - (123,810) 75,650 875,650 47 -189 Hospital Design & DeveLm 1,000,000 - - - 1,000,000 47 -253 Asbestos Removal Project 2,815,000 - - - 2,815,000 Road, Water and Land Improvements 44 -208 Smokey's Clean Up 42,000 - - - 42,000 44 -281 Chiniak Subdivision 389,770 - - - 389,770 44 -293 Airport Feasibility 40,000 - (9,000) - 31,000 44 -295 King Crab - RFP 50,000 - 6,000 - 56,000 44 -343 Drainage Plan Air Photos - 25,000 - - 25,000 44 -344 Parks Development - 40,000 - - 40,000 44 -348 Parks Expansion - - - 40,000 40,000 44 -345 Water & Sewer, Womens Bay - 100,000 - - 100,000 47 -346 Water & Sewer, Monashka Bay - 100,000 - - 100,000 44-347 Dumpster Pads - 20,000 - 24,500 44,500 47 -186 Hospital Heli -pad 250,000 (100,000) (17,000) - 133,000 47 -255 Lakeside Improvement 2,709,640 - (124,800) - 2,584,840 47 -265 Sharatin Road 590.500 - 124.800 - 715.300 Total Capital Projects 513.611.662 S 869,491 S- S 376,150 $14,857.303 82 1 1 1 i 1 i i 1 i 1 1 1 1 1 1 i 1 EXHIBIT D -3 Expenditures Unencumbered Total Unexpended Current Balance Prior 1990 Expenditures Balance Encumbrances Available S - S 455 S 455 S 399,545 S - S 399,545 10,000 10,000 189 683 872 14,128 - 14,128 - 15,000 15,000 - - - 24,334 2,070 26,404 483,456 - 483,456 2,120,923 250,947 2,371,870 - _ _ _ 20,000 _ 20,000 - 33,090 - 33,090 - 867 867 24,633 400 24,233 - 462 462 19,538 - 19,538 832 832 24,168 - 24,168 30,494 2_5, 952 _ 56,446 18,554 - 18,554 493 4,850 5,343 99,657 - 99,657 1,511 33,489 35,000 - - - 836 836 33,865 - 33,865 590,068 - 590,068 162 - 162 940 350 1,290 398,710 - 398,710 3,888 3,888 16,112 - 16,112 85,500 - 85,500 - - _ 562,769 122,913 685,682 - - - - 13,299 13,299 4,701 - 4,701 927 29,073 30,000 123,810 - - - 123,810 - 11,623 88,377 100,000 - - - 117,000 117,000 - - - 875,650 - 875,650 - - - 865,228 53,474 918,702 81,298 59,200 22,098 2,736,602 - 2,736,602 78,398 - 78,398 28,179 - 28,179 13,821 - 13,821 218,664 18,253 236,917 152,853 - 152,853 22,290 8,710 31,000 - _ _ 328 21,244 21,572 34,428 34,428 - ' 25,000 - 25,000 - 40,000 40,000 - - _ - 1,517 1,517 38,483 - 38,483 - 2,520 2,520 97,480 - 97,480 - 2 -Z,351 -SZ-W- - 3,068 3,068 4444 - 41,432 9 6,762 36,238 133,000 _ _ 2,542,669 2,867 2,545,536 39,304 - 39,304 13,959 5,071 19,030 696,270 696,270 $10,830,102 $916 $11,746,758 $3,110,545 S 94,028 $3,016,517 83 ENTERPRISE FUNDS These funds were established to finance and account for the acquisition, operation and maintenance of governmental facilities and services which are entirely or predominantly self - supporting by user charges. SANITARY SERVICES FUND This fund accounts for all activity of the Borough owned sanitary landfill and garbage collection utility. WATER ENTERPRISE FUND This fund accounts for all activity of the Borough owned and operated water utility. SEWER ENTERPRISE FUND This fund accounts for all activity of the Borough owned and operated sewer utility. HOSPITAL ENTERPRISE FUND This fund accounts for all activity of the Kodiak Island 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 Health Systems Management Company. KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING BALANCE SHEETS YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 86 ASSETS Totals Sanitary Water Sewer Services Utility Utility Hospital 1990 1989 Current assets: Equity in central treasury S 37,074 S 278,789 S 49,016 S - S 364,879 S 8,693 Temporary investments - - - - - 250,000 Due from other funds Other cash and cash equivalents - - - - - - 2,370,163 2.370.163 16,580 2,524,150 37.074 278.789 49.016 2.370.163 2,735.042 2.799,423 Receivables: Customers and patients 8,499 21,679 39,491 1,662,305 1,731,974 2,115,885 City of Kodiak - - - 48,394 48,394 103,749 Third party patient payors - 25.000 25,000 27,000 8,499 21,679 39,491 1,735,699 1,805,368 2,246,634 Less allowance for doubtful receivables (6,901 (19,663 (350,000 (376,564 (459.282 Net receivables 8.499 14,778 19,828 1,385.699 1,428.804 1.787,352 Prepaid expenses - - - 14,455 14,455 100,699 Inventories at cost - 213,502 213.502 190.883 227.957 227.957 291.582 Total current assets 45.573 293.567 68,844 3.983.819 4.391.803 4.878.357 Restricted assets: Equity in central treasury - 10,080 10,080 - 20,160 - Temporary investments - 240,778 240,778 - 481,556 476,382 Interest receivable 7,897 7.897 15.794 9.316 Total restricted assets 258,755 258,755 517.510 485.698 Borough designated investment - - 767,567 767 638,658 767,567 767,567 638.658 Fixed assets, at cost: Unclassified utility plant in 2,332,173 5,671,796 9,870,603 - 17,874,572 17,874,572 service Hospital building and fixed equipment - - - 4,193,853 4,193,853 4,186,825 Major moveable equipment 243,970 - 1,610.658 1.854,628 1.933,487 2,576,143 5,671,796 9,870,603 5,804,511 23,923,053 23,994,884 Less accumulated depreciation (204.559 (645,789 8�) (2.385,038 (4,132,709 (3.685,933 2,371,584 5,026,007 8,973,280 3,419,473 19,790,344 20,308,951 Construction work in progress - 15.689 15.721 - 31,410 109,607 Net fixed assets 2.371,584 5,041.696 8,989.001 3.419.473 19.821,754 20,418.558 5252 4 55,594,018 S9S9 3 $ 8,170,859 $25,498,634 $26,421,271 86 EXHIBIT E-1 KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING BALANCE SHEETS YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 LIABILITIES AND FUND EQUITIES L� I - 1 8 7 Totals Sanitary Water Sewer Services Utility Utility Hospital 1990 1989 Liabilities: Payable from current assets: Accounts payable S 37,454 S 11,678 S 10,904 S 280,162 S 340,198 S 128,847 Due to other funds 10,525 Customer deposits 14,441 14,441 11,655 Accrued compensation 2,978 - - 343,198 346,176 347,142 Other accrued liabilities - 21,613 21.613 20.975 ' 40.432 26.119 10.904 644.973 722.428 519.144 Payable from restricted assets: Due to other funds - 6.055 Total restricted liabilities - 6.055 Total liabilities 40.432 26.119 10.904 644.973 722.428 525.199 Fund equities: ' Contributions in aid of construction: City of Kodiak - 189,166 40,000 - 229,166 229,166 State of Alaska 2,412,453 5,482,630 9,630,603 - 17,525,686 17,623,815 Federal government - _ 200,000 2,237,104 2,437,104 2,437,104 Kodiak Island Borough 1,451.544 1.451.544 1,439.928 2,412,453 5,671,796 9,870,603 3,688,648 21,643,500 21,730,013 Less amortization of contributions ' in aid of construction (201.205 (645.757 (897,227 (1.744.189 (1.361.150 Net contributions in aid of construction 2,211.248 5.026,039 8,973,376 3,688.648 19.899,311 20,368.863 ' Retained earnings: Undesignated 165.477 541.860 332.320 3,837.238 4.876,895 5.527.209 Total fund equities 2,376.725 5.567.899 9,305.696 7,525.886 24.776,206 25,896,072 ' 52,417,157 $5,594,018 $9,316,600 $8,170.859 $25 498.634 $26,421,271 L� I - 1 8 7 EXHIBIT E-2 Revenues: Water sales Sewer service charges Refuse collection Sanitary services user fees Patient revenues Installation charges Other KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 Total revenues Operating expenses: Personal services Waste collection 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 loss Other income: Interest income Other, primarily State of Alaska revenue sharing (95,231 (95.800 (158,587 (1.179.808 (1,529.426 (734,583 - 32,829 32.829 20,273 276,635 329,737 280,362 - 93.335 Totals Sanitary Water Sewer 413.796 13( 8,314 (809.838 (1.106.354 Services Utility Utility Hospital 1990 1989 335.000 (138,314) (796,838) S - S 191,450 S - S - S 191,450 S 182,051 - 234,935 - 234,935 230,147 945,714 - - - 945,714 503,569 227,933 - - - 227,933 162,207 - 5,945,858 5,945,858 6,105,723 5,000 2,117 - 7,117 2,348 7.468 4.039 2,009 125.786 139.302 207.077 1,181,115 200.489 239.061 6.071,644 7.692.309 7.393.122 176,863 23,915 21,188 - 221,966 300,672 887,439 - - - 887,439 609,171 157,727 139,516 - 297,243 281,873 23 23,465 28,463 3,834 21,855 - 54,152 42,925 77,923 109,653 196,612 312,599 696,787 717,679 - - 1,912 - - - 3,379,435 3,379,435 3,109,657 618,580 618,580 592,110 82,193 1,160 1,045 2,508,250 2,592,648 1,899,789 - - 17.432 432.588 450.020 571.917 1,276.346 296.289 397,648 7.251.452 9.221.735 8.127.705 Total revenues Operating expenses: Personal services Waste collection 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 loss Other income: Interest income Other, primarily State of Alaska revenue sharing (95,231 (95.800 (158,587 (1.179.808 (1,529.426 (734,583 - 32,829 32.829 20,273 276,635 329,737 280,362 - 93.335 93,335 133.434 20,273 369.970 423.072 413.796 13( 8,314 (809.838 (1.106.354 (320,787 - 13.000 73.000 335,000 - 13.000 73.000 335.000 (138,314) (796,838) (1,033,354) 14,213 Loss before operating transfers (95.231 (62,971 Operating transfers in 60.000 Net operating transfers 60.000 Net earnings (Loss) (35,231) (62,971) Amortization of contributions in aid of construction 76.805 Increase (decrease) in retained earnings 41,574 Retained earnings at beginning of year 123.903 Retained earnings at end of year S 165,477 109.645 196.590 - 383,040 401.913 46,674 58,276 (796,838 (650,314 416.126 495,186 274,044 4,634,076 5,527,209 5,111,083 S 541,860 SS 332,320 S 3,837,238 S 4,876,895 $5,527,209 88 KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 Operating loss Adjustments to reconcile operating Loss to net cash provided by operating activities: Depreciation Change in provision for uncollectible accounts Changes in assets and liabilities: Accounts receivable - Customers and patients Lutheran Hospitals and Homes Society of America City of Kodiak Third party patient payors Prepaid expenses Inventories at cost Receivable from State of Alaska Accounts payable Due to other funds Customer deposits Accrued compensation Other accrued liabilities Total adjustments Net cash provided by (used for) operating activities Cash flows from noncapital financing activities: State of Alaska, Revenue Sharing payments received Operating grants received Operating transfers in from other funds Net cash provided by noncapitaL financing activities Cash flows from capital and related financing activities: Payments made on contracts Acquisition and construction of capital assets Net borrowings (repayments) on interfund capital - related expenditures Receipt of gifts restricted by donor for capital purchases Proceeds from sale of equipment Net cash used for capital and related financing activities Cash flows from investing activities: Repayment of loan to Lutheran Hospitals and Homes Society of America Change in assets whose use is limited by the Borough Interest and dividends paid on investments Net cash provided by investing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year EXHIBIT E -3 Sanitary Water Sewer Services Utilit Utility Hospital Total 1989 S(95,231) 5(95,800) $(158,587) S0,179,808) S(1,529,426) S (734,583) 77,923 109,653 196,612 312,599 696,787 717,679 - 2,260 15,022 (100,000) (82,718) 204,000 3,102 7,791 12,853 (28,374) (10,868) 8,664 (10,525) 2,786 - (2,979) - - 49,672 111,622 222,626 360,165 383,911 (585,824) 963,324 1,347,244 1,136.903 (45,559 15,822 64,039 (216,484 (182,182 402,320 109,460 109,460 236,900 - 1,591 60,000 - - 13,000 73,000 335,000 60,000 - - 122,460 182,460 573,491 (60,646) - (3,568) (16,363) (254,492) (274,423) (615,096) - (3,028) (3,027) - (6,055) 6,055 11,616 11,616 23,994 35,187 35,187 - (6,596 (19,390 (207,689 (233,675 (645,693 1,846,000 - - (128,909) (128,909) 171,739 - 29,590 17,034 276,635 323,259 271,046 - 29,590 17,034 147,726 194,350 2,288,785 14,441 38,816 61,683 (153,987) (39,047) 2,618,903 22,633 490,831 238,191 2,524,150 3,275,805 656,902 S 37,074 5529,647 S 299,874 S 2,37 ,163 S 3,236,758 $3,275,805 89 283,141 103,749 103,749 (97,498) (21,394) (21,394) 151,947 86,244 86,244 (100,699) (22,619) (22,619) (17,080) 367,812 241,929 211,351 76,847 - (10,525) 10,525 2,786 4,354 2,013 (966) 106,691 638 638 15.008 963,324 1,347,244 1,136.903 (45,559 15,822 64,039 (216,484 (182,182 402,320 109,460 109,460 236,900 - 1,591 60,000 - - 13,000 73,000 335,000 60,000 - - 122,460 182,460 573,491 (60,646) - (3,568) (16,363) (254,492) (274,423) (615,096) - (3,028) (3,027) - (6,055) 6,055 11,616 11,616 23,994 35,187 35,187 - (6,596 (19,390 (207,689 (233,675 (645,693 1,846,000 - - (128,909) (128,909) 171,739 - 29,590 17,034 276,635 323,259 271,046 - 29,590 17,034 147,726 194,350 2,288,785 14,441 38,816 61,683 (153,987) (39,047) 2,618,903 22,633 490,831 238,191 2,524,150 3,275,805 656,902 S 37,074 5529,647 S 299,874 S 2,37 ,163 S 3,236,758 $3,275,805 89 EXHIBIT E -4 KODIAK ISLAND BOROUGH SANITARY SERVICES ENTERPRISE FUND BALANCE SHEET YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 ASSETS 1990 1989 Current assets: Equity in central treasury $ 37,074 $ 22,633 Customer receivables 8,499 11,601 Total current assets 45,573 34.234 Fixed assets, at cost: Unclassified plant in service 2,332,173 2,332,173 Major movable equipment 243.970 243.970 2,576,143 2,576,143 Less accumulated depreciation (204.559 (126.636 Net fixed assets 2,371.584 2.449.507 $2.417_157 $2.483 LIABILITIES AND FUND EQUITY Liabilities: Current liabilities: Accounts payable $ 37,454 $ 65,828 Accrued compensation 2.978 5.957 Total current liabilities 40.432 71.785 Fund equities: Contributions in aid of construction: State of Alaska 2,412,453 2,412,453 Less amortization of contributions in aid of construction (201.205 (124.400 2,211,248 2,288,053 Retained earnings, undesignated 165.477 123.903 $2.4� 17_157 $2.483.741 99 EXHIBIT E -5 KODIA ISLAND BOROUG SANITARY SERVICES ENTERPRISE FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTU YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 41 1990 _ Variance - Favorable 1989 Bud eg t Actual (Unfavorable) Actual Revenues: Refuse collection $ 922,000 $ 945,714 $ 23,714 $ 503,569 Sanitary services user fees 218,400 227,933 9,533 162,207 Other - 7,468 7.468 317 Total revenues 1.140,400 1.181.115 40.715 666.093 Operating expenses: Waste collection 903,560 887,439 16,121 609,171 Waste disposal: Personal services 176,520 176,863 (343) 223,343 Contracted services 60,000 23,465 36,535 - Support -goods and services 72,800 80,647 (7,847) 96,431 Baler support costs - - - 5,086 Sanitary services - - - 10,826 Recycling effort - 1,546 (1,546) - Repairs and maintenance 16,000 28,463 (12,463) - Depreciation 14.300 77.923 (63.623 70.544 Total operating expenses 1.243.180 1.276.346 (33.166 1.015.401 Operating Loss (102,780) (95,231) 7,549 (349,308) Other income - - 1.206 Interest income - Loss before operating transfers (102,780) (95,231) 7,549 (348,102) Operating transfer 60.000 60.000 - 335.000 Net loss $ (42.780 (35,231) 7,549 (13,102) Amortization of contributions in aid of construction 76.805 69.426 Increase in retained earnings 41.574 56.324 Retained earnings at beginning of year 123.903 67.579 Retained earnings at end of year S 165A77 $ 1� 2 41 EXHIBIT E -6 KODIAK ISLAND BOROUGH SANITARY SERVICES ENTERPRISE FUND STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 92 1990 1989 Operating loss $(95,231) $(349,308) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 77,923 70,544 Changes in assets and liabilities: Receivable from customers 3,102 11,935 Accounts payable (28,374) 65,383 Accrued compensation (2.979 3.621 Total adjustments 49.672 151.483 Net cash used for operating activities (45.559 (197.825 Cash flows from noncapital financing activities: Operating transfers in from other funds 60.000 335.000 Net cash provided by noncapital financing activities 60.000 335.000 Cash flows from capital and related financing activities: Acquisition and construction of capital assets - (141.330 Net cash used for capital and related financing activities - (141.330 Cash flows from investing activities: Interest and dividends paid on investments - 1.206 Net cash provided by investing activities - 1.206 Net change in cash and cash equivalents 14,441 (2,949) Cash and cash equivalents at beginning of year 22.633 25.582 Cash and cash equivalents at end of year 37,074 22,633 92 KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND BALANCE SHEET YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 1990 1989 ASSETS Current assets: Equity in central treasury $ 278,789 $ 2,640 Temporary investments - 250,000 Customer receivables 21,679 29,470 Less allowance for doubtful receivables (6.901 (4.641 Net customer receivables 14,778 24,829 Total current assets 293.567 277.469 Restricted assets: Equity in central treasury 10,080 - Temporary investments 240,778 238,191 Interest receivable 7.897 4.658 Total restricted assets 258.755 242.849 Fixed assets, at cost: Unclassified utility plant in service 5,671,796 5,671,796 Accumulated depreciation (645,789 (536,136 Net utility plant in service 5,026,007 5,135,660 Construction work in progress 15.689 61.185 Net fixed assets 5.041.696 5,196.845 $5,5� 9� 8 $5,7 94 EXHIBIT E -7 KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND BALANCE SHEET YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 LIABILITIES AND FUND EQUITY Liabilities: Current liabilities: Payable from current assets: Accounts payable Customer deposits Total payable from current assets Payable from restricted assets: 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 1990 1989 $ 11,678 $ 22,546 14.441 11.655 26.119 34,201 3,028 3.028 26.119 37.229 189,166 5,482.630 5,671,796 (645.757 5,026,039 541.860 5.567.899 S5,594 189,166 5,531,694 5,720,860 (536,112 5,184,748 495,186 5,679,934 $5,71 95 EXHIBIT E -8 ODIAK ISLAND BOROUGH WATER ENTERPRISE FUND STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 Revenues: Water sales Installation charges Other Total revenues Operating expenses: Personal services Purchased water Repairs and maintenance Depreciation 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 Net loss Amortization of contributions in aid of construction Increase in retained earnings Retained earnings at beginning of year Retained earnings at end of year 109.645 46,674 495.186 $ 541,860 108.148 52.904 442.282 $ 495,186 96 1990 Variance Favorable 1989 Budget Actual (Unfavorable) Actual $190,000 $191,450 $ 1,450 $182,051 5,000 5,000 - 2,348 11.000 4.039 (6.961 17.242 206.000 200.489 (5.511 201.641 27,500 23,915 3,585 40,786 100,000 157,727 (57,727) 111,604 30,000 3,834 26,166 17,292 36,100 109,653 (73,553) 108,157 - - - 808 500 - 500 265 100 - 100 34 500 - 500 582 1,100 9 1,091 1,221 2,700 1,151 1,549 577 - - - 1,305 7.500 7.500 450 206.000 296.289 (90.289 283.081 - (95.800 (95.800 (81,440 32.829 32.829 26.196 $ (62,971) $(62,971) (55,244) 109.645 46,674 495.186 $ 541,860 108.148 52.904 442.282 $ 495,186 96 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 Operating loss Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation Change in provision for uncollectible accounts Changes in assets and liabilities: Receivable from customers Receivable from State of Alaska Accounts payable Customer deposits Total adjustments Net cash provided by operating activities Cash flows from capital and related financing activities: Payments made on contracts Acquisition and construction of capital assets Net borrowings (repayments) on interfund capital - related expenditures Receipt of gifts restricted by donor for capital purchases Net cash used for capital and related financing activities Cash flows from investing activities: Interest and dividends paid on investments Net cash provided by investing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 97 1990 $(95,800) 109,653 2,260 7,791 (10,868) 2.786 111.622 15.822 (3,568) (3,028) (6.596 29.590 29.590 38,816 490.831 $ 529,647 EXHIBIT E -9 1989 $(81,440) 108,157 (15,801) 183,906 14,872 4.354 295.488 214.048 (30,323) (18,102) 3,028 3.721 (41.676 21.538 21.538 193,910 296.921 $ 490,831 KODIAK ISLAND BOROUGH SEWER ENTERPRISE FUND BALANCE SHEET YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 A SSET 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 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 1990 1989 $ 49,016 $ - 39,491 52,344 (19.663 (4.641 19.828 47.703 68.844 47.703 10,080 - 240,778 238,191 7.897 4.658 258.755 242.849 9,870,603 (897.323 8,973,280 15.721 8.989.001 $9,316.600 9,870,603 (700,711 9,169,892 48.422 9.218.314 $9,508.866 98 EXHIBIT E -10 KODIA ISLAND BOROUGH SEWER ENTERPRISE FUND BALANCE SHEET YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 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: 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 1990 1989 $ - $ 10,525 10.904 2.240 10.904 12.765 3,027 3.027 10.904 15.792 40,000 9,630,603 200.000 9,870,603 (897.227 8,973.376 332.320 9.305.696 $9.300 40,000 9,679,668 200.000 9,919,668 (700,638 9.219.030 274.044 9.493.074 $9,5 99 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, 1990 WITH COMPARATIVE TOTALS FOR 1989 Revenues: Sewer service charges Installation charges Other Total revenues Operating expenses: Personal services Purchased sewer treatment Repairs and maintenance Depreciation Installation costs Other: Operating supplies 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 Net loss Amortization of contributions in aid of construction Increase (decrease) in retained earnings Retained earnings at beginning of year Retained earnings at end of year _ 1990 Variance Favorable 1989 Budget Actual (Unfavorable) Actual $243,940 $ 234,935 $ (9,005) $ 230,147 5,000 2,117 (2,883) - 3.200 2.009 (1.191 3.248 252.140 239.061 (13.079 233.395 22,500 21,188 1,312 36,543 172,000 139,516 32,484 170,269 20,000 21,855 (1,855) 25,633 13,700 196,612 (182,912) 239,647 - - - 1,912 2,000 578 1,422 - 15,000 17,432 (2,432) 16,224 500 - 500 850 1,000 - 1,000 265 100 - 100 34 100 - 100 573 1,000 10 990 701 - 457 (457) 373 4,240 4.240 1.241 252.140 397.648 (145.508 494.265 - (158.587 (158.587 (260,870 20.273 20.273 10.554 $ (138,314) $(13�8,314 (250,316) 196.590 224,339 58.276 (25.977 274.044 300.021 332 320 $ 27 �_ 100 ' EXHIBIT E -12 KODIAK ISLAND BOROUGH ' SEWER ENTERPRISE FUND STATEMENT OF CASH FLOWS ' YEAR ENDED JUNE 30, 1990 WITH COMPARATIVE TOTALS FOR 1989 t 1990 1989 ' Operating loss $(158,587) $(260,870) Adjustments to reconcile operating loss to net cash provided by operating activities: ' Depreciation 196,612 239,647 Change in provision for uncollectible accounts 15,022 - Changes in assets and liabilities: ' Receivable from customers 12,853 (2,238) Receivable from State of Alaska 183,906 Accounts payable 8,664 109 ' Due to other funds (10.525 10.525 Total adjustments 222.626 431.949 ' Net cash provided by operating activities 64.039 171.079 Cash flows from noncapital financing activities: ' Operating grants received - 1.591 Net cash provided by noncapital financing activities 1.591 Cash flows from capital and related financing activities: ' Payments made on contracts - (30,323) Acquisition and construction of capital assets (16,363) (22,481) ' Net borrowings (repayments) on interfund capital - related expenditures (3,027) 3,027 Receipt of gifts restricted by donor for capital purchases - 6.511 ' Net cash used for capital and related financing activities (19.390 (43.266 ' Cash flows from investing activities: Interest and dividends paid on investments 17.034 5.896 t Net cash provided by investing activities 17.034 5.896 Net change in cash and cash equivalents 61,683 135,300 ' Cash and cash equivalents at beginning of year 238.191 102.891 Cash and cash equivalents at end ' of year 299.874 238,191 1 101 KODIAK ISLAND BOROUGH HOSPITAL ENTERPRISE FUND BALANCE SHEET YEAR ENDED DECEMBER 31. 1989 WITH COMPARATIVE TOTALS FOR 1988 ASSETS Current assets: Other cash balances Receivables: Patients City of Kodiak Third party Less allowance for doubtful receivables Net receivables Prepaid expenses Inventories, at cost Total current assets Borough designated investments Fixed assets, at cost: Land Building and fixed equipment Major movable equipment Less accumulated depreciation Net fixed assets 1990 1989 $2,370,163 $ 2,524,150 1,662,305 2,022,470 48,394 103,749 25,000 27,000 (350.000 (450,000 1,385,699 1,703,219 14,455 100,699 213.502 190,883 3.983,819 4.518.951 767,567 638,658 38,551 38,551 4,155,302 4,148,274 1.610.658 1,689.517 5,804,511 5,876,342 (2.385,038 (2.322.450 3.419.473 3,553, S 8.170,859 $ 8,711,501 102 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH EXHIBIT E -13 HOSPITAL ENTERPRISE FUND BALANCE SHEET YEAR ENDED DECEMBER 31, 1989 WITH COMPARATIVE TOTALS FOR 1988 LIABILITIES AND FUND EQUITY $8,1��9 $8,711,501 103 1990 1989 Current liabilities: Accounts payable $ 280,162 $ 38,233 Accrued liabilities: Compensation 343,198 341,185 Other 21.613 20.975 Total current liabilities 644,973 400,393 Fund equities: Contributions in aid of construction: Federal government 2,237,104 2,237,104 Kodiak Island Borough 1.451.544 1.439.928 3,688,648 3,677,032 Retained earnings, undesignated 3.837.238 4.634.076 Total fund equities 7.525.886 8.311.108 $8,1��9 $8,711,501 103 EXHIBIT E -14 KODIAK I BOROUGH HOSPITAL ENTERPRISE FUND STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND EQUITY YEAR ENDED DECEMBER 31, 1989 WITH COMPARATIVE TOTALS FOR 1988 104 1990 1989 Revenues: Patient $7,202,789 $6,693,120 Less allowances for uncollectible accounts (1.256,931 (587,397 Net patient revenues 5,945,858 6,105,723 Other 125,786 186,270 Total revenues 6,071,644 6,291,993 Operating expenses: Depreciation 312 299,331 Professional care of patients 3,379,435 3,109,657 Dietary 432,588 434,071 Plant operation and household 618,580 592,110 General administrative 2,508,250 1,899,789 Total operating expenses 7,251,452 6,334,958 Operating income (loss) (1,179,808) (42,965) Other income (expense): Interest income 276,635 242,406 State of Alaska, Revenue Sharing 134,460 149,400 Loss on disposal of equipment (41,125 (15,966 Total other income 369,970 375,840 Net Earnings (loss) before operating transfers (809,838) 332,875 Operating transfer in 13,000 - Net Earnings (loss) (796,838) 332,875 Fund equity at beginning of year 8,311,108 7,964,471 Donor restricted gifts 11,616 13,762 Fund equity at end of year $7,525,886 $8,311,108 104 1 105 EXHIBIT E -15 KODIAK ISLAND BOROUGH ' HOSPITAL ENTERPRISE FUND STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 1989 WITH COMPARATIVE TOTALS FOR 1988 1990 1989 Operating loss $(1,179,808) $ (42,965) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 312,599 299,331 Change in provision for uncollectible accounts (100,000) 204,000 Changes in assets and liabilities: Accounts receivable - Patients 360,165 (579,720) Lutheran Hospitals and Homes Society of America - 283,141 City of Kodiak 103,749 (97,498) ' Third party patient payors (21,394) 151,947 Prepaid expenses 86,244 (100,699) Inventories at cost (22,619) (17,080) Accounts payable 241,929 (3,517) Accrued compensation 2,013 103,070 other accrued liabilities 638 15,008 Total adjustments 963,324 257,983 Net cash provided by (used for) _ operating activities (216,484 215,018 Cash flows from noncapital financing activities: State of Alaska, Revenue Sharing payments received 109,460 236,900 1 Operating transfers in from other funds 13,000 - Net cash provided by noncapital financing activities 122,460 236,900 Cash flows from capital and related financing ' activities: Acquisition and construction of capital assets (254,492) (433,183) Receipt of gifts restricted by donor for capital purchases 11,616 13,762 Proceeds from sale of equipment 35,187 - Net cash used for capital and related financing activities (207,689 (419,421 Cash flows from investing activities: Repayment of loan to Lutheran Hospitals and Homes Society of America - 1,846,000 Change in assets whose use is limited by the Borough (128,909) 171,739 Interest and dividends on investments 276,635 242,406 Net cash provided by investing activities 147,726 2,260,145 Net change in cash and cash equivalents Cash and cash equivalents at (153,987) 2,292,642 beginning of year 2,524,150 231,508 Cash and cash equivalents at end of year S 2.370,163 $2,550 1 105 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 C r 1 This fund accounts for deferred compensation and accumulated earnings thereon for participants in the Borough's IRC Section 457 Deferred Compensation Plan. C r 1 EXHIBIT F -1 KODIAK ISLAND BOROUGH AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS. LIABILITIES AND FUND BALANCES YEAR ENDED JUNE 30, 1990 Balance at Balance at July 1. 1989 Additions Deletions June 30, 1990 STUDENT ACTIVITIES FUND ASSETS Cash, including time certificates of deposit $ 94,424 Other receivables 720 95,144 $249,853 $246,812 $ 97,465 720 $ 249,853 $247,532 97,465 LIABILITIES Accounts payable $ 2,784 $ 5,053 $ 2,784 $ 5,053 Due to student organizations 92.360 244.800 244,748 92.412 95,144 $249,853 $247,532 97,465 DEFERRED COMPENSATION FUND ASSETS ICMA investments (at market value) $519.926 LIABILITIES Due to participants $519,926 TOTALS - ALL AGENCY FUNDS ASSETS Cash, including time certificates of deposit $ 94,424 Other receivables 720 ICMA investments 519.926 $ 615.070 LIABILITIES Accounts payable $ 2,784 Due to student organizations 92,360 Due to participants 519.926 $ 615,070 $ 129,892 26,838 $622,980 $ 129,892 26,838 $622,980 $249,853 $246,812 $ 97,465 - 720 - 129.892 26.838 622.980 $ 379,745 $274,370 $720,445 $ 5,053 $ 2,784 $ 5,053 244,800 244,748 92,412 129.892 26.838 622.980 $ 379,745 $274,370 $720,445 108 GENERAL FIXED ASSETS ACCOUNT GROUP This is a self - balancing account group which records fixed assets of the Borough and School District other than those recorded in the Enterprise Funds. ,7 � I 1 1 LI L'� EXHIBIT G -1 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS GROUP STATEMENT OF GENERAL FIXED ASSETS BY SOURCE JUNE 30, 1990 General fixed assets: Land Buildings Improvements other than buildings Equipment Construction work in progress Investment in general fixed assets: Capital Projects Funds: General obligation bonds Federal grants State grants General Fund revenues Special Revenue Funds revenues Contribution from State of Alaska $ 7,469,315 64,302,588 842,139 3,540,096 1,819,351 $77,973,489 $48,290,811 662,245 14,968,151 1,624,357 1,951,582 10,476,343 $77,973,489 110 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS GROUP STATEMENT OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY JUNE 30, 1990 EXHIBIT G-2 111 Improvements Machinery Other Than and Total Land Buildings Buildings Equipment Staff agencies: Borough mayor $ 25,925 S - S - S - S 25,925 Borough clerk 35,038 - - - 35,038 72,684 - - - 72,684 Assessing 24,232 - - - 24,232 Community development 56,667 - - - 56,667 Engineering /Facilities 93,314 - - - 93,314 Data services 330,572 - - - 330,572 Resource management 8,950 - - - 8,950 General administration 121,248 - - - 121,248 Mental health 78,193 - - 78,193 Total staff agencies 846,823 - - - 846,823 Public safety: Emergency preparedness 194,724 - 100,000 - 94,724 Fire Protection Area 1 692,490 - 455,584 - 236,906 Bell's Flats Fire District 606,698 425,655 - 181,043 Total public safety 1,493,912 - 981,239 - 512,673 Schools 58,806,370 - 58,806,370 - - School equipment 2,180,600 - - - 2,180,600 Teacher housing 125,715 - 125,715 - - General governmental buildings 4,389,264 - 4,389,264 - - Building sites 110,648 110,648 - - - Playgrounds 710,239 - - 710,239 - Other 131,900 - - 131,900 - Total general fixed assets allocated to functions 68,795,471 110,648 64,302,588 842,139 3,540,096 Undeveloped Land 7,358,667 7,358,667 - - - Construction work in progress 1,819,351 1,819,351 - - Total general fixed assets $77,973,489 57,469,315 $66,121,939 $842,139 53,540,096 111 EXHIBIT G -3 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS GROUP STATEMENT OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY JUNE 30, 1990 Staff agencies: Borough mayor Borough clerk Finance Assessing Community development Engineering /Facilities Data services Resource management General administration 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. 1989 Additions Deductions June 30. 1990 $ 13,007 $ 12,918 $ - $ 25,925 26,096 8,942 - 35,038 66,487 13,381 (7,184) 72,684 22,743 6,799 (5,310) 24,232 41,300 27,680 (12,313) 56,667 95,933 8,782 (11,401) 93,314 296,758 39,218 (5,404) 330,572 2,530 6,420 - 8,950 97,088 26,284 (2,124) 121,248 58.633 33.618 (14.058 78.193 720.575 184.042 (57,794 846.823 94,724 100,000 - 194,724 661,275 31,215 - 692,490 606.698 - 606.698 1.362.697 131.215 - 1.493.912 53,294,877 5,679,428 (167,935) 58,806,370 1,998,579 231,561 (49,540) 2,180,600 125,715 - - 125,715 4,389,264 - - 4,389,264 110,648 - - 110,648 710,239 - - 710,239 131.900 - 131.900 62,844.494 6,226,246 (275.269 68.795,471 7,358,667 - - 7,358,667 6.911.287 687.492 _(5,779.428 1.819.351 $77,114,448 $6,913,738 $(6,054,697 $77,973,489 112 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. r 1 1 EXHIBIT H -1 KODIAK ISLAND BOROUGH GENERAL LONG -TERM DEBT ACCOUNT GROUP STATEMENT OF GENERAL LONG -TERM DEBT JUNE 30, 1990 WITH COMPARATIVE FIGURES FOR 1989 Amount available and to be provided for the payment of general long -term debt: Amount available in Debt Service Funds: School serial bonds Accrued annual leave Amount to be provided: School serial bonds Environmental Protection Agency loan General obligation school bonds: 1986A Improvement 1989 Refunding Environmental Protection Agency loan Accrued annual leave 1990 1989 $ 6,683,745 $ 5,809,248 151.675 136.481 6.835.420 5.945.729 8,626,255 11,190,752 302,083 322,910 8,928,338 11,513,662 $15,763,758 $17,459,391 $ 6,000,000 9.310.000 15.310.000 302,083 151.675 453.758 $15.763.758 $ 7,000,000 10,000,000 17,000,000 322,910 136,481 459,391 $17,459,391 114 SECTION 3 STATISTICAL SECTION 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. t 1 1 EXHIBIT I -1 KODIAK ISLAND BOROUGH KODIAK, ALASKA SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY JUNE 30, 1990 Annual Principal and Interest Requirements* General Oblieation School Bonds Calendar Year Principal Interest Total 1990 $1,075,000 $ 911,843 $ 1,986,843 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 $15,310,000 $5,8� $21,116,083 * Does not include issues that have been fully defeased. ** Includes imputed interest of 8% on Variable Rate Demand Bonds, Series 1986A. Note: This schedule (and 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. 116 EXHIBIT I-2 KODIAK ISLAND BOROUGH ' KODIAK, ALASKA GENERAL OBLIGATION SCHOOL IMPROVEMENT BONDS, SERIES 1986A RETIREMENT SCHEDULE I * Interest is at a variable rate; calculation made at 8% of the unpaid principal balance. r 1 117 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 79 in the amount of $2,930,000 have been retired. Bonds numbered 80 through 199 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of ten years. Retirement dates are quarterly beginning on September 1, 1986 and quarterly thereafter. For information on early call of these bonds, please review the ordinance, ' Letter of credit, and prospectus on this issue. This issue was marketed by and is marked to market and indexed weekly by John Nuveen & 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 1990 Variable 80 -84 S 250,000 S 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 0 Jun 1991 Variable 95 -99 250,000 105,000 355,000 1 1 Oi 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 Sep 1994 Variable Variable 155-159 160 -164 250,000 250,000 45,000 40,000 295,000 290,000 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 36,000,000 $1,500,000 $7,500,000 y5 o✓ , ' " OSO, i I * Interest is at a variable rate; calculation made at 8% of the unpaid principal balance. r 1 117 EXHIBIT I -3 KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL OBLIGATION SCHOOL REFUNDING BONDS. SERIES 1989 RETIREMENT SCHEDULE This issue, dated May 1, 1989, consists of 2,000 bonds in the amount of $5,000 each, totaling $10,000,000. Bonds numbered 1 through 138 have been retired. Bonds numbered 139 through 2,000 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of 10 years. Retirement date is August 1 of each year beginning in 1989. Bonds maturing in 1997 and after are callable beginning in 1997 and this call privilege may be exercised. This issue was marketed by John Nuveen & Co. of Chicago. Legal opinion was rendered by bond counsel, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage. Bonds were issued to refund the 1980 issue. Bonds are payable at the Security Pacific National Bank (formerly Rainier) Seattle, Washington. * Maturities on and after August 1, 1997 are callable at par on this and any interest date thereafter. 118 Bond Principal Interest Interest Interest Numbers Due Due Due Year Rate Inclusive August 1 February 1 August 1 Total 1990 8.00 139 -253 S 575,000 ✓ S - S 322,993 ✓ S 897,993 1991 7.60 254- 379 630,000 299,993 ✓ 299,992 1,229,985 1992 6.60 380- 515 680,000 276,052 276.05 1,232,105 1993 6.65 515- 660 725,000 253,613 253,612 1,232,225 1994 6.65 661- 816 780,000 229,506 229,507 1,239,013 1995 6.70 817- 983 835,000 203,571 203,571 1,242,142 1996 6.80 984 -1161 890,000 175,599 175,599 1,241,198 1997* 6.85 1162 -1350 945,000 145,339 145,338 1,235,677 1998 6.90 1351 -1553 1,015,000 112,972 112,973 1,240,945 1999 6.96 1554 -1769 1,080,000 77,955 77,955 1,235,910 2000 7.00 1770 -2000 1.155,000 40.425 40,425 1,235.850 $9,310,000 51,815,025 52,138.018 513,263,043 q � �3s,000 * Maturities on and after August 1, 1997 are callable at par on this and any interest date thereafter. 118 MEMO ONLY - Refunded by May 1, 1989 issue. * This issue will be called in its entirety on August 1, 1990, 1 119 EXHIBIT I-4 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 112,100,000. Bonds numbered 1 through 621 have been retired. Bonds numbered 622 through 2420 bear interest at the rate indicated below. Bonds are retired serially in numerical 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 Security Pacific Bank (formerly Rainier Bank and Trust), Seattle, Washington. ' Bond Principal Interest Interest Interest Numbers Due Due Due Year Rate Inclusive August 1 February 1 August 1 Total 1990* 7.30 622 -729 $ 540,000 S - f 351,851 f 891,851 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 1.257,000 58,995,000 $2,058,332 $2,4� 1�3 $13,463,515 MEMO ONLY - Refunded by May 1, 1989 issue. * This issue will be called in its entirety on August 1, 1990, 1 119 EXHIBIT I -5 KODIAK ISLAND BOROUGH KODIAK, ALASKA ASBESTOS REMOVAL LOAN PAYABLE RETIREMENT SCHEDULE This debt was incurred June 24, 1985 as part of a package from the U.S. Environmental Protection Agency. This package was for $750,000. One half ($375,000) was a grant (EPA Grant J 851002 010) and the other half was a loan. The loan is repayable semi-annually in the amounts indicated below. Semi - annual payments are made directly to the U.S. Environmental Protection Agency; Financial Management Center; P.O. Box 371293M; Pittsburgh, PA 15251 This is not general obligation debt. Legal opinion was rendered by bond counsel, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage. * No interest is payable until a payment due is in default; then interest, penalties and fees become due. See grant folder for full details of default conditions. 120 Principal Principal Interest Due Due Interest Year Rate * June 30 December 31 Due* Total 1990 7.00 S - 3 10,416.67 3 - 3 10,416.67 1991 7.00 10,416.67 ✓ 10,416.67 - 20,833.34 1992 7.00 10,416.67 10,416.67 - 20,833.34 1993 7.00 10,416.67 10,416.67 - 20,833.34 1994 7.00 10,416.67 10,416.67 - 20,833.34 1995 7.00 10,416.67 10,416.67 - 20,833.34 1996 7.00 10,416.67 10,416.67 - 20,833.34 1997* 7.00 10,416.67 10,416.67 - 20,833.34 1998 7.00 10,416.67 10,416.67 - 20,833.34 1999 7.00 10,416.67 10,416.67 - 20,833.34 2000 7.00 10,416.67 10,416.67 - 20,833.34 2001 7.00 10,416.67 10,416.67 - 20,833.34 2002 7.00 10,416.67 10,416.67 - 20,833.34 2003 7.00 10,416.67 10,416.67 - 20,833.34 2004 7.00 10,416.67 10,415.89 - 20,832.56 $145.833.38 5156,249.27 S - $302.082.65 * No interest is payable until a payment due is in default; then interest, penalties and fees become due. See grant folder for full details of default conditions. 120 STATISTICAL TABLES Statistical tables reflect social and economic data, financial trends and the fiscal capacity of the governmental unit. F� TABLE 1 KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (a) LAST TEN FISCAL YEARS (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 Local Service Other Fiscal General Roads and Health and Debt Operating Year Government Trails (c) Sanitation (b) Education (b) Service Transfers Total 1981 $1,525,087 S - 5342,696 $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 4,913,578 1986 1,877,136 - 563,516 1,662,858 - 447,669 4,551,179 1987 2,089,508 - 579,930 1,901,130 - 553,373 5,123,941 1988 1,964,710 - 545,954 2,177,405 - 890,000 5,578,069 1989 2,208,351 - 517,112 2,128,997 - 768,100 5,622,560 1990 2,478,619 - 367,921 2,334,650 - 553,312 5,734,502 (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 TABLE 2 KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL REVENUES BY SOURCE (a) LAST TEN FISCAL YEARS (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 1981 $2,281,111 S 24,083 51,706,477 5112,120 S 754, %l $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 1990 2,640,044 120,145 1,316,238 - 540,851 68,790 4,686,068 (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 $984,930 due from City of Kodiak. I (b) 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. 124 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 Levy Collections Collected Collections Collections to Tax Levy Taxes Tax Levy 1981 $2,257,590 $1,496,037 66.3 S 41,038 $1,537,075 68.1 $1,051,093(b) 46.6 1982 2,118,431 2,095,431 98.9 978,969(a) 3,074,400 145.1 95,124 4.5 1983 1,876,462 1,844,867 98.3 94,231 1,939,098 103.3 32,488 1.7 1984 1,646,752 1,617,654 98.2 31,487 1,649,141 100.1 30,099 1.8 1985 1,508,003 1,492,923 99.0 10,733 1,503,656 99.7 19,366 1.3 1986 2,024,237 1,986,914 98.2 13,502 2,000,416 98.8 43,185 2.1 1987 2,181,410 2,176,543 99.7 12,207 2,188,750 100.3 49,235 2.2 1988 1,926,427 1,912,214 99.3 54,625 1,966,839 102.1 25,610 1.3 1989 1,991,902 1,987,251 99.7 4,474 1,991,725 99.9 21,136 1.1 1990 2,034,500 2,017,190 99.1 12,351 2,029,541 99.7 28,640 1.4 (a) Includes $984,930 due from City of Kodiak. I (b) 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. 124 KODIAK ISLAND BOROUGH KODIAK, ALASKA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS TI Assessed Value 1357,662,900 337,072,196 284,114,955 395,620,404 394,608,581 406,612,778 404,859,425 428,764,585 436,800,264 479,942,347 (a) Exempted boat full and true value for $5 and 115 fees. (b) Reflects exemptions of boats and inventories. (c) Exempted $5 tax for small watercraft (boats and skiffs under five ton). TABLE 4 Ratio of Total Assessed )TAL to Total Estimated Estimated Actual Actual Value Value 1357,662,900 100.00 337,072,196 100.00 361,395,705 78.60 490,455,565 80.70 492,755,043 80.10 480,132,023 84.70 457,733,337 88.40 536,598,321 79.90 562,827,029 77.60 634,425,802 75.65 125 REAL PROPERTY PERSONAL PROPERTY Fiscal Assessed Estimated Assessed Estimated Year Value Actual Value Value Actual Value 1981 $225,394,400 5225,394,400 5132,268,500 5132,268,500 1982 187,598,046 187,598,046 149,474,150 149,474,150 1983 216,508,832 216,508,832 67,606,123 (a) 144,886,873 1984 307,989,403 307,989,403 87,631,001 (b) 182,466,162 1985 325,278,582 325,278,582 69,329,999 167,476,461 1986 354,524,678 354,524,678 52,088,100 (c) 125,607,345 1987 367,360,196 367,360,196 37,499,229 90,373,141 1988 379,969,521 379,969,521 48,795,064 156,628,800 1989 378,072,396 393,259,044 58,727,868 169,567,985 1990 406,433,607 429,674,254 73,508,740 204,751,548 TI Assessed Value 1357,662,900 337,072,196 284,114,955 395,620,404 394,608,581 406,612,778 404,859,425 428,764,585 436,800,264 479,942,347 (a) Exempted boat full and true value for $5 and 115 fees. (b) Reflects exemptions of boats and inventories. (c) Exempted $5 tax for small watercraft (boats and skiffs under five ton). TABLE 4 Ratio of Total Assessed )TAL to Total Estimated Estimated Actual Actual Value Value 1357,662,900 100.00 337,072,196 100.00 361,395,705 78.60 490,455,565 80.70 492,755,043 80.10 480,132,023 84.70 457,733,337 88.40 536,598,321 79.90 562,827,029 77.60 634,425,802 75.65 125 TABLE 5 KODIAK ISLAND BOROUGH KODIAK, ALASKA 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: Fiscal Assessed Amount of Millage Year Road Service Districts Equivalent Fire Districts KIB City Debt $357,662,900 $1,066,927 2.98 1982 337,072,196 676,922 2.01 Fiscal General of Service 1984 Monashka Service Bayview Women's Service Women's Year Fund Kodiak Funds Total Bay District 1 Road Bay District 1 Bay 2,343,992 5.47 1989 423,038,700 2,444,882 5.78 1990 452,016,912 2,469,558 5.46 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 1990 4.50 2.00 0.00 6.50 1.25 0.70 1.00 1.50 1.25 1.25 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: Fiscal Assessed Amount of Millage Year Value Contribution Equivalent 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 2,444,882 5.78 1990 452,016,912 2,469,558 5.46 126 KODIAK ISLAND BOROUGH KODIAK, ALASKA TEN LARGEST TAXPAYERS YEAR ENDED JUNE 30, 1990 TABLE 6 * Taxes actually collected were less, in some cases, due to various taws such as personal property within city limits being exempt. 127 Percentage Percentage of total 1990 (Net)* of total Assessed Assessed Taxes Taxes Taxpayer Valuation Valuation Levied Levied International Seafoods of Alaska 2.12% !10,153,785 S 50,203 2.47% Telephone Utilities of the Northland 1.74 8,344,557 16,887 .83 Alaska Pacific Seafoods 1.64 7,866,236 21,387 1.05 All Alaskan Seafoods, Inc. 1.50 7,203,635 18,601 .91 King Crab, Inc. 1.42 6,835,891 30,203 1.48 Western Alaska Fisheries 1.41 6,765,289 28,265 1.39 Sea -Land Services, Inc. 1.41 6,759,513 37,436 1.84 Waldos /O'Kraft & Son, Inc. (Retailers) 1.16 5,562,686 30,552 1.50 Hill Bay Plaza Association .96 4,628,760 30,087 1.48 Brechan Enterprises, Inc. (Construction) .90 4.326.077 22.674 1.11 14.26 568.446,429 $286,294 1 Totals * Taxes actually collected were less, in some cases, due to various taws 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 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 Capital 1981 10,124 $357,662,900 $ 15,610,000 $1,180,818 $14,429,182 4.0 1,425 1982 (a) 12,714 337,092,196 15,390,000 435,438 14,954,562 4.4 1,176 1983 13,079 284,114,955 22,275,000 425,438 21,849,562 7.7 1,670 1984 13,389 395,620,404 30,025,000 6,300,296 23,724,704 6.0 1,772 1985 13,748 394,608,581 25,815,000 7,154,308 18,660,692 4.7 1,357 1986 13,952 406,612,778 30,665,000 7,776,557 22,888,443 5.6 1,641 1987 14,127 404,859,425 25,925,000 7,279,292 18,645,708 4.6 1,320 1988 14,375 428,764,585 22,160,000 7,111,644 15,048,356 3.5 966 1989 15,575 436,800,264 17,550,000 5,310,721 12,239,279 2.8 786 1990 (b) 15,558 452,016,912 15,310,000 6,683,745 8,826,255 1.9 567 (a) This figure was via a joint Borough /City special census. This figure was accepted and certified by the State demographer on November 17, 1982 and later accepted by the Federal Bureau of Census. , (b) 1990 population is per U.S. Bureau of Census (preliminary); others are estimates from the Borough Planning Department based on the "Housing Unit Method." 128 KODIAK ISLAND 80ROUGH KODIAK. ALASKA COMPUTATION OF DIRECT AND OVERLAPPING DEBT YEAR ENDED JUNE 30, 1990 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 f 8,826,255 100% S 8,826,255 City of Kodiak: General obligation bonds 1,145,000 64 732,800 Revenue bonds 5 3� 10_ 64 3.398.400 Total !15,281,255 $12.957 = 455 (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 KODIAK ISLAND BOROUGH KODIAK, ALASKA COMPUTATION OF LEGAL DEBT MARGIN JUNE 30. 1990 �l Assessed value Plus exempt property Total S 436,800,264 1.303.391,324 $1.740.19 u �J t 1 The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions. Debt capacity is I ultimately determined by the marketplace. 130 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) 1981 S 215,000 S 218,521 S 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 5,622,560 118.1 1990 2,260,833 978,583 3,239,416 5,803,292 55.8 (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) 1981 10,124 2,086 1982 12,714 2,106 1983 13,079 2,189 1984 13,389 2,180 1985 13,748 2,295 1986 13,952 2,285 1987 14,127 2,329 1988 14,375 2,531 1989 15,575 2,304 1990 15,558 2,328 UnemDlovment Rate (c) 10.0 12.1 9.7 6.9 9.6 7.7 7.4 6.2 3.2 5.6 (a) 1990 per U.S. Bureau of Census (preliminary); other years per Borough Planning Department. (b) Kodiak Island Borough School District. (c) Department of Labor, Anchorage. 132 KODIAK ISLAND BOROUGH KODIAK. ALASKA SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS YEAR ENDED JUNE 30, 1990 TABLE 12 (1) By ordinance in 1984 the Kodiak Island Borough Assembly elected to decrease the amount of bond payments and to self - insure except for the treasurer and cashier. These positions are bonded at 51,000,000 and 550,000, respectively. (2) Also covered by elected officials errors and omission policy of $1,000,000. 133 Amount of Name of Official Title Annual Salary Surety Bond (1) Jerome M. Selby Mayor $65,000 (2) See page 4 Assembly members 2,400 (2) Contracted Attorney - Bryce S. Weeks Finance Director /Treasurer 62,333 $1,000,000 Earl Smith Fire Chief, Service Area One 55,209 - Perry L. Page Data Processing Manager 52,597 - Gaye Vaughan Borough Clerk 52,800 - Linda Freed Director of Planning and Community Development 63,866 _ Deborah Anderson Cashier 24,999 50,000 Patrick Carlson Assessor /Appraiser 51,339 - Pam Delys -BagH en Director of Mental Health 75,728 _ Ray Camardello Facilities Coordinator 50,111 - Karleton G. Short Accountant 52,597 - (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 51,000,000 and 550,000, respectively. (2) Also covered by elected officials errors and omission policy of $1,000,000. 133 1 ' KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY VALUE. CONSTRUCTION AND BANK DEPOSITS ' LAST TEN FISCAL YEARS YEAR ENDED JUNE 30, Source: 1. From Local bankers. * Estimated actual value. TABLE 13 PROPERTY VALUE * Commercial Residential Nontaxable S 77,980,241 $109,408,625 S 51,972,410 86,107,893 129,872,475 CONSTRUCTION 107,487,339 199,913,042 245,623,546 Commercial Residential 739,960,807 116,411,447 236,302,401 1,053,965,717 115,574,577 258,311,716 Deposits in Fiscal No. of 1,134,524,305 No. of 255,417,891 Local Year Units Value Units Value Banks (1) 1981 40 S 331,941 55 S 2,163,650 S 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 70,402,810 1988 42 549,382 91 4,314,003 72,068,409 1989 22 1,174,346 131 6,421,773 93,830,000 1990 t 18 1,709,715 104 8,109,662 90,221,433 Source: 1. From Local bankers. * Estimated actual value. TABLE 13 PROPERTY VALUE * Commercial Residential Nontaxable S 77,980,241 $109,408,625 S 51,972,410 86,107,893 129,872,475 208,695,345 107,487,339 199,913,042 245,623,546 104,233,851 220,001,411 739,960,807 116,411,447 236,302,401 1,053,965,717 115,574,577 258,311,716 1,127,834,040 114,409,875 252,950,321 1,134,524,305 123,053,031 255,417,891 1,159,131,464 128,202,254 266,409,021 1,177,364,559 115,477,806 314,539,889 1,993,871,408 135 KODIAK ISLAND BOROUGH KODIAK. ALASKA MISCELLANEOUS STATISTICAL DATA YEARS ENDED JUNE 30, 1981 THROUGH JUNE 30, 1990 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 (c) Number of teachers Number of students Number of municipal employees Elections: Number of registered voters Number voting in last election Percent of registered voters 1981 1982 1983 1984 4,900 4,900 4,900 4,900 16.48 16.48 16.48 16.48 - - 3.7 - - 309 309 - - 170 170 95 124 213 137 2,495.5 4,034.7 18,339.9 8,416.1 2 1 2,230 2,440 3,277 4,099 ' - 4 5 1 1 1 1 11 10 10 10 4 4 4 4 6 6 6 7 1 1 1 1 187 178 179 174 150 150 150 156 2,086 2,106 2,189 2,180 37 39 46 49 5,198 5,883 5,115 5,200 1,613 1,619 1,720 2,079 31.0 27.5 33.6 44.0 (a) Prior years include lands designated recreational; 1986 and after represents actual acres of parks. (b) By annexation, effective March 4, 1989 the Borough has grown an additional 12,830 square miles. Total Borough is now 22,395 square miles with a land mass of 7,130 square miles (see map on page ix). (c) All non - teaching employees. 136 TABLE 14 1985 1986 1987 1988 1989 1990 4,900 4,900 4,900 4,900 7,130 (b) 7,130 17.29 19.53 20.3 21.5 21.5 21.5 4.2 9.63 15.49 16 16 16 309 410 659 707 748 748 170 327 619 666 727 727 ' 161 172 169 133 153 153 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 3,414 220 (a) 222 223 223 223 5 14 15 15 15 15 1 1 1 1 1 1 10 10 10 10 11 11 4 4 4 4 4 4 7 7 7 7 7 7 1 1 1 1 1 1 158 159 152 167 172 165 157 154 148 169 167 167 ' 2,295 2,285 2,329 2,351 2,304 2,328 46 49 53 57 66 60 ' 5,603 6,463 6,559 5,427 6,150 6,352 3,075 2,356 2,094 2,507 1,459 2,327 46.6 36.4 31.9 46.2 23.7 37.0 137