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CAFR FY1992KODIAK ISLAND BOROUGH 1992 COMPREHENSIVE I_l0 to Lll_1� FINANCIAL REPORT JULY 1, 1991 -JUNE 30, 1992 Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1992 TABLE OF CONTENTS INTRODUCTORY SECTION ELECTED OFFICIALS (PHOTOGRAPHS) BOROUGH OFFICIALS BOARDS AND COMMITTEES ' MAP OF KODIAK ISLAND BOROUGH GFOA CERTIFICATE OF ACHIEVEMENT ORGANIZATIONAL CHART LETTER OF TRANSMITTAL FINANCIAL SECTION EXHIBIT INDEPENDENT AUDITOR'S REPORT GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - All Governmental Fund Types Combined Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances - Budget and Actual - General Fund, Special Revenue Fund and Debt Service Fund Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Type - Enterprise Funds Combined Statement of Cash Flows Proprietary Fund Type - Enterprise Funds Notes to Financial Statements COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS GENERAL FUND: Balance Sheet Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual Schedule of Expenditures and Transfers - Budget and Actual 1 2 3 4 5 A -1 A -2 A -3 PAGE v vi vii ix x xi xiii 1 2 6 8 11 12 13. 34 35 38 i I i ii Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1992 TABLE OF CONTENTS ' (Continued) EXHIBIT PAGE SPECIAL REVENUE FUNDS: Combining Balance Sheet B -1 44 Combining Statement of Revenues, Expenditures, Transfers ' and Changes in Fund Balance (Deficit) B -2 46 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual: Fire and Road Service Districts: Fire: £ Area 1 B -3 48 Women's Bay Road: B -4 49 Monashka Bay B -5 50 ` District 1 B -6 51 Women's Bay Bay View B -7 B -8 52 53 ' State Grant Programs: Mental Health Center B -9 54 Mental Health Center - Schedule of Expenditures B -10 55 Federal and State Grant Programs: Coastal Management B -11 56 E Day Care Education B -12 B -13 57 58 Land Sales B -14 59 Building and Grounds B -15 60 j Woodland Acres Lighting B -16 61 Community and Regional Affairs B -17 62 Oil Spill Cleanup B -18 63 ' DEBT SERVICE FUNDS: Combining Balance Sheet C -1 66 Combining Statement of Revenues, Expenditures Transfers, and Changes in Fund Balance C -2 67 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual: School Bonds C -3 68 Other C -4 69 CAPITAL PROJECTS FUNDS: Combining Balance Sheet D -1 72 Combining Statement of Revenues, Expenditures, Transfers and Changes in Fund Balances (Deficits) D -2 74 Schedule of Capital Projects D -3 76 I i ii Kodiak Island Borough Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1992 TABLE OF CONTENTS (Continued) iii EXHIBIT PAGE ENTERPRISE FUNDS: Combining Balance Sheet E -1 80 Combining Statement of Revenues, Expenditures, Transfers and Changes in Retained Earnings E -2 82 Combining Statement of Cash Flows E -3 83 Sanitary Services: Balance Sheet E -4 84 Statement of Revenues, Expenditures, Transfers and Changes in Retained Earnings - Budget and Actual E -5 85 Statement of Cash Flows E -6 86 Water: Balance Sheet E -7 87 Statement of Revenues, Expenditures, Transfers and Changes in Retained Earnings - Budget and Actual E -8 88 Statement of Cash Flows E -9 89 Sewer: Balance Sheet E -10 90 Statement of Revenues, Expenditures, Transfers and Changes in Retained Earnings - Budget and Actual E -11 91 Statement of Cash Flows E -12 92 Hospital: Balance Sheet - December 31, 1990 and 1989 E -13 93 Statement of Revenues, Expenditures, Transfers and Changes in Retained Earnings E -14 94 Statement of Cash Flows E -15 95 AGENCY FUNDS: Combining Statement of Changes in Assets, Liabilities and Fund Balances F -1 98 GENERAL FIXED ASSETS ACCOUNT GROUP: Schedule of General Fixed Assets by Source G -1 100 Schedule of General Fixed Assets by Function and Activity G -2 101 Schedule of Changes in General Fixed Assets by Function and Activity G -3 102 iii Kodiak Island Borough I Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1992 ' TABLE OF CONTENTS (Continued) f EXHIBIT PAGE GENERAL LONG -TERM DEBT ACCOUNT GROUP: Schedule of General Long -Term Debt H -1 104 SUPPLEMENTAL FINANCIAL DATA: ' Summary of Debt Service Requirements to Maturity I -1 106 General Obligation School Improvement Bonds, Series 1986A Retirement Schedule I -2 107 General Obligation School Refunding Bonds, Series 1989 Retirement Schedule I -3 108 Asbestos Removal Loan Payable I -4 109 STATISTICAL SECTION { TABLE PAGE P STATISTICAL TABLES: General Governmental Expenditures and Other Uses by Function - Last Ten Fiscal Years 1 112 General Revenues by Source - Last Ten Fiscal Years 2 113 Property Tax Levies and Collections - Last Ten Fiscal Years 3 114 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 4 115 Property Tax Rates - All Overlapping Governments - ' Last Ten Fiscal Years 5 116 Ten Largest Taxpayers 6 117 Ratio of Net General Bonded Debt - Last Ten Fiscal Years 7 118 Computation of Direct and Overlapping Debt 8 119 Computation of Legal Debt Margin 9 120 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures - Last Ten Fiscal Years 10 121 Demographic Statistics - Last Ten Fiscal Years 11 122 , Salaries and Surety Bonds of Principal Officials 12 123 Property Value, Construction and Bank Deposits - 1. Last Ten Fiscal Years 13 124 Miscellaneous Statistical Data - Years Ended June 30, 1983 ' through June 30, 1992 14 126 r� iv SECTION 1 INTRODUCTORY SECTION Annual Report • Kodiak Island Borough, Alaska - ASSEMBLY MEMBERS- To the Honorable Mayor and Members of the Kodiak Island Borough Assembly: In accordance with the provisions of the Kodiak Island Borough Code, there is presented herewith the Comprehensive Annual Financial Report for the year ended June 30, 1992, and the related statements and statistical tables. Respectfully submitted, / �. 14e Karleton G. Short, Finance Director BETTY J. FITZJEARL At Large, 1993 JEROME SELBY Mayor of Kodiak Island Borough, 1992 GARY L. STEVENS At Large, 1992 Deputy Presiding Officer GORDON J. GOULD At Large, 1994 SUZANNE J. HANCOCK At Large, 1993 JACK L. McFARLAND At Large, 1993 Presiding Officer of Assembly MICHAEL R. MILLIGAN At Large, 1994 MARY A. MONROE At Large, 1992 BOROUGH OFFICIALS ' KODIAK ISLAND BOROUGH ' YEAR ENDED JUNE 30, 1992 BOROUGH ASSEMBLY Betty J. Fitzjearl '93 Michael R. Milligan 1 94 Gordon J. Gould 1 94 Mary A. Monroe 1 92 Suzanne J. Hancock '93 (Deputy Presiding Officer) Gary L. Stevens 1 92 Jack L. McFarland 1 93 (Presiding Officer) BOROUGH MAYOR Jerome M. Selby 1 92 Karleton G. Short . . . . . . . . . . . . . . . . . Finance Director /Treasurer Vacant . . . . . . . . . . . . . . . . . . .Facilities /Engineering Coordinator Donna Smith . . . . . . . . . . . . . . . . . . . . . . . . . . Borough Clerk Linda L. Freed . . . . . . . . . . . . . . . . . . . . . . Planning Director Patrick S. Carlson . . . . . . . . . . . . . . . . . . . . Assessor /Appraiser Perry L. Page . . . . . . . . . . . . . . . . . . . . Data Processing Manager Pamela Delys - Baglien . . . . . . . . . . . . . . . . . Mental Health Director Earl A. Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . Fire Chief Charles E. "Bud" Cassidy . . . . . . . . . . . . Resource Management Officer Jamin, Ebell, Bolger, Gentry . . . . . . . (Contracted Firm) Borough Attorney Edwin Myers . . . . . . . . . . . . . . . . . . . . . . Hospital Administrator John Witteveen . . . . . . . . . . . . . . . Superintendent, School District Cheryl Bolger . . . . . . . . . . . . . . . . . . . . . . . . . . . Accountant Barbara Templeton . . . . . . . . . . . . . . . . . . . . . Purchasing Agent E ( Vi 1� i KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1992 School Board (7) Alice Knowles Mary La Ferriere Cheryl McNeil * Bill Oliver Norm Wooten Susan Workman, CG rep. Daniel Rohrer, Stud. rep. ' Hospital Advisory Board (9) Ben Ardinger Alan Austerman Gil Bane Gordon Gould Dr. Roger Mason Gretchen Saupe * Betty Springhill ' Wayne Stevens Jeannie Volker Mental Health Center Advisory ' Board (81 * James Carmichael Vickie Hester Meri Holder Jeri Jensen Mary Monroe Evelyn Mortimer Karen Perkins Ron Woitel Planning and Zoning Commission (7) Jon R. Aspgren Shawn "Tuck" Bonney Jerrol Friend Robin Heinrichs * Tom Hendel Jody Hodgins William Matzell Woodland Acres Street Lighting Service District Advisory Board (3) Bob Hatcher Barbara Heinrichs * Sharon Nault 1 Parks and Recreatio Committee (12 Forrest Blau Brian Himelbloom Jeri Jensen Claire Holland Alice Knowles William Matzell Bill McClain Jack McFarland * David Odell Gloria Wiechmann Melissa Robinson Jane Spicciani Building Code Board of ADpeals (A Review Boardl (9) Ron Chase Gerald Cloudy Louise Cusson Woody Koning William Matzell Mike Milligan Tom Rainey * James Wheeler Vacant - School Board Rep. Personnel Advisory Board (5) Joanne Demke * Craig N. Fanning Katharine Gravino Jeff Silva Dorothy Weeks Data Processing Steering Committee (7) Suzanne Hancock Jack McFarland Perry Page * Jerome Selby Karleton Short John Witteveen Jocelyn Zwiefelhofer Fire Protection Area #1 Advisory Board (51 * Scott Arndt Vernon Berns Charles Lorenson John Shank Bill Swearingin vii Indicates chair Citizen Board of Equalization (5) i * Jim Carmichael Andy Cristaldi Tim Hurley Tom Peterson Will Walton Bill Roberts, Alternate 1 Parks and Recreatio Committee (12 Forrest Blau Brian Himelbloom Jeri Jensen Claire Holland Alice Knowles William Matzell Bill McClain Jack McFarland * David Odell Gloria Wiechmann Melissa Robinson Jane Spicciani Building Code Board of ADpeals (A Review Boardl (9) Ron Chase Gerald Cloudy Louise Cusson Woody Koning William Matzell Mike Milligan Tom Rainey * James Wheeler Vacant - School Board Rep. Personnel Advisory Board (5) Joanne Demke * Craig N. Fanning Katharine Gravino Jeff Silva Dorothy Weeks Data Processing Steering Committee (7) Suzanne Hancock Jack McFarland Perry Page * Jerome Selby Karleton Short John Witteveen Jocelyn Zwiefelhofer Fire Protection Area #1 Advisory Board (51 * Scott Arndt Vernon Berns Charles Lorenson John Shank Bill Swearingin vii Indicates chair KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1992 Bay View Road Service District Airport Advisory Committee (11) Advisory Board (5) Jacque Bunting Dawn Black Dan Dorman Randy Chase Tom Merriman Rick Holzshu Michael Machulsky Ken Minks Edward Randolph * Reed Oswalt Peggy Rauwolf Lee Robbins Monashka Bay Road Service District * Wayne Stevens Advisory Board (5) Joel Wattum Roger Blacket John Chya, ex- officio Lou Dochtermann John Malmrose, CG ex- officio Don Fox Gregg Razo * Joel Wattum Emeraencv Services Council (5 Tom Barrett, Capt. USCG * Gary Bloomquist Wally Johnson Jerome Selby Gary Stevens Services District No. 1 Advisory Board (7) * Scott Arndt Jim Fisk Charles Lorenson Dan W. Moen Andy Nault Earl Smith, Jr. Tom Streifel Women's Bav Service Di strict Advisory Board (7) Andy Edgerly * Bill Farling James "Butch" Fitzjearl George Lee Dale Starkovich Brian Stevens Bob Tarrant Kodiak Island Transportation Study Steering Committee (KITS) Gary Bloomquist Dave Crowe Betty Fitzgerald Wally Johnson Jerome Selby * Indicates chair viii r w m m m it r r m mm ma n.. WRU�Y(IE — �U wve AKMo a s KODIAK d' ISLAND BOROUGH 4 1� �P NOME ¢1� ` � NORTON SOUND `1 ARCTIC OCEAN P BARROW BARROW FRUGHOE BAY EBUE _ ARCTIC CIRCLE -- FAIRBANKS A I A BETHEL DILLINGHAM r1 % BRISTOL BAY v;e , � O s• Q GE . 4 6 NA . GULF OF ALASKA KODIAK oa ISLAND NORTH PACIFIC OCEAN CANADA EAU HIKAN Certificate of Achievement for Excellence in Financial Reporting Presented to I Kodiak Island Borough, Alaska For its Comprehensive Annual Financial Report for the Fiscal Year Ended ' i June 30, 1991 A Certificate of Achievement for Excellence in Financial ' Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ` NgE OfFj�� t� F s � NRED SgiFS � W ANO y y unu s President CHICA6� �`� cutive Director � m m m s m m m m m r r m m m m m m m Godiak, IsLand $orougFi. Organization CFtart VIEC70R.491, Borough Assem6Ey Mected ) Hospital Advisory Board (Appointed by Assem6l ) Service District Advisory Boards (Appointed) Citizens Advisory Boards /Commissi.on (Appoi.rnted 6y AssembE ) Personnel Board of Schools Woodland Acres Architectural Review Aospitat Street Lighting Parks and Recreation Administrator District Board of Equalization - Service District No. t M.entat 3LeaLth. Center ,!{ospital Borough Economic Development Staff Attorney OCS Advisory Council $uiLdtng Code Board of Appeals Borough XITS Committee Clerk, Airport Advisory Committee nayor ( £Lected ) Service District Advisory Boards (Elected) School $oar& «� Superintendent - 1'tonas"a, Bay Road Service of Schools District - Womens Bay Road Service /fire District S ChO OL Staff - Service District No. t -Road, Water, Sewer fire District No. t - $ayview Road Service District P[anntng & Zoning Commtssion General Community Engineering Data nenud (Appointed 6y Admints- Development /factttties finance Services As 3Lmith Department Department Center Ttayor) tration Department Department Department � 4 411, V r October 2, 1992 Kodiak IslandBorough 710 MILL BAY ROAD KODIAK, ALASKA 99615 -6340 PHONE (907) 486.5736 To the Honorable Mayor and Members of the Assembly Kodiak Island Borough Kodiak, Alaska The comprehensive annual financial report (CAFR) of the Kodiak Island Borough (Borough), Kodiak, Alaska for the fiscal year ended June 30, 1992 is submitted herewith. This report was prepared by the Borough Finance Department. Responsibility for the accuracy, completeness and fairness of presentation, including all disclosures, rests ' with the Borough. We believe the data, as presented, is accurate in all material respects, that it is presented in a manner designed to fairly set forth the financial position and results of operations of the Borough as measured by the financial activity of its various funds, and that all disclosures necessary to enable the reader to gain maximum understanding of the Borough's financial affairs have been included. This comprehensive annual financial report is presented in three main sections: introductory, financial, and statistical. The introductory section includes background on the Borough, the fund accounting concept used by the Borough, and some financial presentations. The financial section includes the report of the independent accountants, combined financial statements, notes to financial statements, and more - detailed combining and individual financial statements and schedules. The t statistical section includes selected financial and general information generally presented on a ten year comparative basis. GENERAL INFORMATION The Kodiak Island Borough lies at the western border of the Gulf of Alaska, about 40 miles south of the Kenai Peninsula. About two - thirds of the Borough lies in the Kodiak archipelago. One third of the Borough is on the Alaska Peninsula across the Shelikof Strait from Kodiak Island. The Shelikof Strait is only 20 miles wide in places. The Borough encompasses 7,130 square miles, making it slightly smaller than the State of Massachusetts. The Borough was incorporated September 30, 1963 as a Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. The Borough is governed by a strong 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. xiii ECONOMIC CONDITION AND OUTLOOK The economic condition of the Kodiak Island Borough remains quite good. The main industries of the Kodiak Island Borough are commercial fishing, logging, and tourism. While some segments of the commercial fishing industry are down, others are up. Logging has been fairly stable. The State Ferry Tustemena returned to service in 1992 after being in Washington state for repairs during all of 1991. This helped the tourism industry considerably. Commercial fishing is by far the largest industry in the Kodiak Island Borough. For all of the fisheries combined the total catch in calendar year 1991 was $101,877,551 compared to $103,639,625 in calendar year 1990. In recent years salmon has accounted for approximately one third of the total value of the fisheries industry in Kodiak. The 1992 salmon catch in Kodiak was fairly good; with an ex- vessel value of $39 million. Last year's (1991) ex- vessel value was $31 million. The shellfish (crab) industry continues its decline with a catch of $10.3 million in 1991 compared to $27.6 million in 1990 and $47.5 million in 1980. The assessed value of real and personal property of the Kodiak Island Borough has risen from $380,320,299 in 1983 to $559,359,084 in 1992, an increase of 47 %. The unemployment rate as of June 30 was 5.1% which compares quite favorably with last year's rate of 8.2 %. July 5th is the traditional time when the canneries hire their seasonal workers. The unemployment rate is generally 3 to 12 %. Based on current Chamber of Commerce projections, the Kodiak Island Borough will continue to grow through the end of the century. This growth will positively impact the Kodiak Island Borough but it must be realized that the Borough will also have to grow to provide the same level of services to its residents. MAJOR INITIATIVES In preparing the Fiscal Year 1992 budget the Kodiak Island Borough identified several major projects to be addressed in Fiscal Year 1992. All major projects are listed in Exhibit D -3 of the annual report. The largest project initiated in Fiscal Year 1992 was the High School Alteration, Phase II. This project involves several stages. The first moves the weight room into the gymnasium area. The existing weight room will then be remodeled into a new home economics space, and the existing home economics space will be remodeled into 3 class rooms. The second largest project initiated in Fiscal Year 1992 was the purchase and renovation of the Salonie creek rifle range. This is a 15 position, 500 yard rifle range. It is situated in the Salonie Creek Valley and encompasses 700 acres. There is also a 50 yard pistol range on the property. This range was constructed by the U.S. Navy during World War II and declared surplus when they left. Other projects started in Fiscal Year 1992 include the Hospital hot water tank, the Hospital laundry slab, and several small school projects. The Kodiak Island Borough has designated a new hospital as their number one capital project. To this end, the Borough has done the site work and completed the design of a new hospital. The Borough is presently procuring funds to begin construction of the hospital. DEPARTMENT OR ACTIVITY SERVICE EFFORTS AND ACCOMPLISHMENTS The Borough provides a variety of services including education, health, garbage collection and disposal, planning and zoning, public improvements, and general ' administration. The Borough provides for education through the Kodiak Island Borough School District and has contracted with Lutheran Health Systems Management Company to operate the Borough Hospital. xiv The Borough is responsible for operating the sanitary landfill and provides water and sewer services outside the Kodiak city limits. The Borough has oversight responsibility for four road service districts, two fire protection districts, and a street light service district. Each year the Borough selects a department to highlight for its efforts and ' accomplishments. This year Resource Management was selected. Resource Management is staffed by one individual, the Resource Management Officer, and is supported by a 1/2 time secretary. ' This year Resource Management was responsible for the acquisition of almost 8000 acres from the State of Alaska. The Resource Management Office orchestrated the title work, surveying, platting, and permitting that led to the issuance of this patent. Borough property is the foundation for economic development around the island and this acquisition is part of the Borough's multi - million dollar land asset. This office is also involved in many of the Borough's public works projects. This involvement includes acquiring easements or fee simple ownership of private land that is essential for the completion of public projects. The Borough has just completed work on the construction of a new road (Sharatin Road). This office negotiated and acquired two road right -of -way easements from two adjacent property owners. ' The Kodiak Island Borough School District and the Borough Assembly have identified the need for a new elementary school. During fiscal year 1992 the Resource Management Office provided information on site selection and performed the analysis to come up with a number of site candidates. Upon selection of a site, this office negotiated on ' behalf of the Borough for the acquisition of six parcels totaling 12 acres from three owners at a cost of a quarter million dollars. Also during fiscal year 1992 the Resource Management Office negotiated for and purchased a 700 acre site that is the location of the premier outdoor rifle range in the state of Alaska. The Salonie Creek Rifle Range is a surplus military range that was conveyed to a local native corporation. The Borough subsequently purchased the range and will return it to full use for the public. The range was purchased for a half million dollars. The Resource Management Office also administers approximately 25 leases, permits, and gravel sale contracts for compliance with the terms of these contracts. This office has been recognized as a local resource for information and assistance about the U.S. Army Corps of Engineers wetland permit process, land ownership information around the island, and Federal Indian land law (i.e. Alaska Native Claims Settlement Act). ' With the operation of our Autocad computer -aided drafting system this office looks to continue its role providing the citizens of Kodiak current up to date information about land ownership and resource information on the island. Such a massive effort as described above can only be done with such limited personnel resources due to computer technology, the cooperation of other Borough employees, as well as the knowledge and experience of it's one staff member. FINANCIAL INFORMATION DISCUSSION OF CONTROLS ' Management is extremely aware of the importance of good internal controls. Although present controls are considered to be highly satisfactory and adequate, they continue to be scrutinized periodically for enhancements. Internal control structure The accounting system of the Borough is dependent upon a strong system of internal control. The Finance Director of the Borough also acts as the internal auditor. The xv Borough is concerned with all aspects of internal control, both reliable and accurate financial information and the safeguarding of Borough assets. As much as possible, in a small office, duties are segregated and no one person has complete control over any one area. Budgetary controls The Borough uses the modified accrual basis for governmental funds and the accrual basis for enterprise funds. Under the modified accrual basis of accounting, revenues are recognized when measurable and available and expenditures are recognized when incurred. Budgetary control is maintained by an annual appropriation system supplemented by a supplemental appropriation approximately half way through the fiscal year. Budgetary control is also maintained through the use of an encumbrance system. As purchase orders, contracts and other obligations are issued, corresponding amounts of appropriations are reserved by the use of encumbrances so that appropriations will not be overexpended. All new monies are appropriated by a public hearing and the adoption of an appropriation ordinance. Appropriation transfers are made between funds and /or departments only after the adoption of a resolution by the Assembly. Appropriation transfers between line items within a fund are done by staff. GENERAL GOVERNI[ENT FUNCTIONS The following schedule presents a summary of general fund revenues for the fiscal year ended June 30, 1992 and the amount and percentage of increases and decreases in relation to prior year revenues. Only the General Fund of the Borough is considered in the following explanation of general governmental functions. Revenue Source and Other Financing Sources Property taxes Intergovernmental Investments and property Severance taxes Licenses, permits, fees and other $7,098,760 100.0 $1,46 Property tax is the largest source of revenue for the general fund of the Kodiak Island Borough. The increase in property tax is due to an increase in the assessed value of the Borough of $43,054,215 and increasing the mill rate from 4.5 mills to 5.5 mills. Changes in levels of expenditures for major General Fund functions of the Borough over the preceding year are shown in the following tabulation: Increase Increase Percent (Decrease) Amount of Total Over 1990 $3,537,851 49.8% $ 713,922 2,450,339 34.5 194,388 367,551 5.2 (88,830) 530,083 7.5 530,083 212.936 3.0 112.068 $7,098,760 100.0 $1,46 Property tax is the largest source of revenue for the general fund of the Kodiak Island Borough. The increase in property tax is due to an increase in the assessed value of the Borough of $43,054,215 and increasing the mill rate from 4.5 mills to 5.5 mills. Changes in levels of expenditures for major General Fund functions of the Borough over the preceding year are shown in the following tabulation: I i xvi IJ Increase Percent (Decrease) Function Amount of Total 1991 General government $1,925,177 60.0% $(18,208) Public safety 97,616 3.0 16,317 Public works 88,482 2.8 (61,416) Health and sanitation 478,324 14.9 67,324 Education 27,510 0.9 (16,123) Culture and recreation 190,700 5.9 - Conservation and development 400,093 12.5 (26,423 $3,207,902 100.0 S(38,529 I i xvi IJ One of the major goals of the Kodiak Island Borough has been to control the increase in expenditures. To this end, expenditures for fiscal year 1992 were some $38,529 less than last year. While it is true that most of this reduction was in public works and relates to a better allocation of costs to Capital Projects, the Borough has done an excellent job on controlling expenditures. At the end of fiscal year 1992 the Borough was able to add $133,226 to the fund balance of the General Fund. Management feels that a minimum fund balance of two million dollars should be maintained for the General Fund. The following table reflects fund balance of the General Fund at the close of business for fiscal years ended June 30: 1983 $ 2,684,707 1984 2,742,239 1985 2,661,914 1986 2,532,100 1987 2,475,747 1988 2,248,866 1989 3,098,371 1990 1,981,147 1991 1,774,750 1992 1,981,577 PROPRIETARY OPERATIONS The Kodiak Island Hospital and Care Center is contracted for management services with the Lutheran Health Systems Management Company. The Borough is ultimately liable for any financial loss. The Hospital showed a profit in fiscal year 1992 of $202,989. This comes after three years of major losses. For the six months ended June 30, 1991 the Hospital lost $991,950, calendar year 1990 losses were $781,365 and 1989 had a loss of $809,938. 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. In the last five years, the utility funds have had operating losses of $2,400,521. On July 1, 1991 water, sewer, and garbage rates were increased by 46 %. The major reason for the large loss in sanitary services for fiscal year 1992 was an 11% increase in the contract cost for residential garbage collection. The Borough contracts with a commercial contractor for residential garbage collection. This rate increase was based on the Anchorage consumer price index, per the contract, and was effective July 1, 1991. Operating Profit (Loss) The utility funds, which include water, sewer and sanitary services are frequently supported by contributions from the general or other funds. Management's goal is to make the utility funds self- sufficient. To this end a rate increase is anticipated for sanitary services. Also, water and sewer rates need to be increased. xvii Sanitary Water Sewer Services Total 1988 $(49,711) $(177,372) $(287,447) $(514,530) 1989 (81,440) (260,870) (349,308) (691,618) 1990 (95,800) (158,587) (95,231) (349,618) 1991 (183,366) (177,001) (54,968) (415,335) 1992 (35,137) (138,007) (256,276) (429,420) The utility funds, which include water, sewer and sanitary services are frequently supported by contributions from the general or other funds. Management's goal is to make the utility funds self- sufficient. To this end a rate increase is anticipated for sanitary services. Also, water and sewer rates need to be increased. xvii FIDUCIARY OPERATIONS All fiduciary activity is handled with the same care and due diligence that we exercise with any of our funds. All amounts due are withheld and /or collected, accounted for, and remitted promptly. Periodically the State of Alaska informs each participating entity of the Public Employees Retirement System (PERS) as to the employee and employer contribution rates. These amounts are budgeted, withheld and remitted accordingly. Also, periodically the actuarial assumptions are revised by the State of Alaska PERS. When such occurrence creates a deficiency, that amount is paid within the period of notification or upon adoption of a subsequent budget. The Borough collects, deposits, invests and accounts for all property tax receipts. For the entities for which the Borough does the accounting, the revenue is recognized in those particular funds. Receipts for the City of Kodiak are normally remitted in full in October or November of each year. All other fiduciary collection activity (i.e., Federal withholding, FICA, Insurance, Pension funds, etc.) is accounted for and promptly remitted to the agency involved. DEBT ADMINISTRATION Summary of debt principal outstanding at fiscal year end was: General obligation, school 1991 General obligation refunding 1989 Environmental Protection Agency loan $ 4,090,000 8,105,000 260,414 512,455,414 On July 15, 1991, Kodiak Island Borough issued $4,875,000 in General Obligation School Refunding Bonds, 1991 Series A, to refund the 1986 Series A General Obligation Variable Rate Demand Bonds. The interest rate on the bonds will vary from 4.65% to 5.90% and will be paid in semi - annual installments commencing December 1, 1991 with the last installment due June 1, 1996. Proceeds from the issuance were used as follows: Deposit to principal and interest fund to pay off refunded issue Costs of issuance Original issue discount $ 4,738,047 126,938 10,015 $ 4,875,000 The Statutes of the State of Alaska and the Code of the Kodiak Island Borough do not establish a legal debt margin. Our debt capacity is determined by a vote of the electorate and ultimately by the marketplace when debt is attempted to be placed. The Borough has no revenue bonds authorized or issued. The Borough's general obligation bonds are rated as follows: Moody's Standard Investors Service and Poors General obligation refunding 1991 Aaa AAA General obligation refunding 1989 Aaa AAA Per capita debt for the past ten years is reflected in Table 7 on page 118. You may note that a per capita high of $1,772 was reached in 1984 during the peak years of our new school construction. Our per capita bonded debt is now down to $399. t xviii CASs MANAGEMENT Cash management is a strong point of your current Borough Finance Department. Monies, naturally, cannot be invested until received and deposited. As simple as this is, few in government stress this point. It was only a few years ago that several years of unpaid taxes were not the exception. The required forms were not prepared and ' submitted promptly for drawdowns on State grants and other receivables were handled in a like manner. All accounts of the Borough are now relatively current and proper monitoring procedures are in place for timely receipt and deposit of any amounts due. Investment policies ■ The Borough treasurer operates as the central treasurer for all Borough monies. This, in effect, means the Borough, School District, Hospital and Mental Health Center ' monies. A cash pool concept is maintained whereas all funds are self- balancing unique entities and each fund has its own cash account which on occasion may show a "book overdraft" while others have an excess of cash. In this manner, the Borough is able to fully invest all idle funds without creating a "bank overdraft." All funds are deposited daily and all idle funds are invested on the following day. We do recognize that there is frequently some exposure to uninsured and uncollateralized deposits. We have made great strides in minimizing this exposure through increased collateral and selection of banks and brokers with additional insurance. An account is used with the local servicing bank to daily sweep the total balances to another account. This account is collateralized by U.S. Treasuries at 102% of carrying value. Collateral is held by a third party bank. ' On July 1, 1991 the Borough started purchasing all new investments on a delivery verses payment system. Basically, what this means is that when the Borough purchases a new instrument, such as a treasury bill or an Agency note, our servicing bank pays for the instrument when it is delivered to them. All investments are held by our servicing bank in the Borough's name. Management feels that this is a much safer way of holding our investments. The Borough investment policy is far more restrictive than that of 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. During the past year the investments of the Borough have fluctuated between $18 and $21 million. Interest rates for our fiscal year started off at 5.8% to 8.0% in early July 1991. At year -end of June 30, investments were earning from 3.8% to 5.7% for an ' average yield of 4.29 %. We closed out the year with investment earnings for all funds in the amount of $1,039,979. RISK MANAGEMENT Risk management is a term used to describe all management activities directed toward the control of risks. The methods used to establish this control are: ' - Identification of risks - Measurement of risks - Elimination of or control of risks - Self- assumption of certain risks through formal funding ' - Transferring risks through the purchase of insurance A year by year comparison is somewhat meaningless, without study, as some years' records include refunds of unearned premiums of past years while others do not. The Assembly and staff are currently working on identification of risks as an ongoing item so that appropriate management action may be taken to minimize cost where possible while providing adequate coverage. Insurance premium costs are no longer a minor expenditure item for the Borough. In recent years, insurance premium costs have risen x ix OTHER INFORMATION INDEPENDENT AUDIT The Borough Code requires an annual audit to be made of the books of account, financial records, and transactions of all administrative departments of the Borough. We have complied with this requirement and the auditor's opinion has been included in this report. The 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 ". AWARDS GOVERNMENT FINANCE OFFICERS ASSOCIATION CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Kodiak Island Borough for its comprehensive annual financial report for the fiscal year ended June 30, 1991. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Borough has received a Certificate of Achievement for the last four consecutive years (fiscal years ended 1988 - 1991). We believe our current report continues to conform to the Certificate of Achievement Program requirements, and we are submitting it to the Government Finance Officers Association. GOVERNMENT FINANCE OFFICERS ASSOCIATION DISTINGUISHED BUDGET PRESENTATION AWARD The Borough Mayor and Finance personnel have worked hard in recent years to streamline our budget. Each annual document encompasses the good features of the prior years while adding the best of current ideas. We submitted our Fiscal Year 1991 and 1992 budgets to the GFOA and received the Distinguished Budget Presentation Award for both years. OTHER AWARDS Citizens of the Kodiak Island Borough are pleased to see that our Mayor, Jerome M. Selby, has been recognized nationally. He appears in the current issue of Who's Who in the West and also Who's Who in the World xx ' considerably and are now in excess of a million dollars annually. The policy of the Borough is to get bids on the selection of the insurance agent every three years. We work closely with this agent to get the best coverage for the dollar. ' Periodically we also have an insurance analysis performed by a major risk management F independent consultant (one who sells only service, not insurance) to review our coverage and highlight potential exposure and /or duplication of questionable coverage. This has again been accomplished and a copy of this report is used and is on file. , OTHER INFORMATION INDEPENDENT AUDIT The Borough Code requires an annual audit to be made of the books of account, financial records, and transactions of all administrative departments of the Borough. We have complied with this requirement and the auditor's opinion has been included in this report. The 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 ". AWARDS GOVERNMENT FINANCE OFFICERS ASSOCIATION CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Kodiak Island Borough for its comprehensive annual financial report for the fiscal year ended June 30, 1991. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Borough has received a Certificate of Achievement for the last four consecutive years (fiscal years ended 1988 - 1991). We believe our current report continues to conform to the Certificate of Achievement Program requirements, and we are submitting it to the Government Finance Officers Association. GOVERNMENT FINANCE OFFICERS ASSOCIATION DISTINGUISHED BUDGET PRESENTATION AWARD The Borough Mayor and Finance personnel have worked hard in recent years to streamline our budget. Each annual document encompasses the good features of the prior years while adding the best of current ideas. We submitted our Fiscal Year 1991 and 1992 budgets to the GFOA and received the Distinguished Budget Presentation Award for both years. OTHER AWARDS Citizens of the Kodiak Island Borough are pleased to see that our Mayor, Jerome M. Selby, has been recognized nationally. He appears in the current issue of Who's Who in the West and also Who's Who in the World xx 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, ' KARLETON G. SHORT DIRECTOR OF FINANCE n xxi 1 SECTION 2 FINANCIAL SECTION 101 West Benson Boulevard Telephone 907 563 4444 Anchorage, AK 99503 Price Waterhouse INDEPENDENT AUDITOR'S REPORT October 2, 1992 To the Mayor and Members of the Assembly Kodiak Island Borough 4% In our opinion, the accompanying general purpose financial statements listed in the table of contents present fairly, in all material respects, the financial position of the Kodiak Island Borough at June 30, 1992 and the results of its operations and cash flows for its proprietary fund type for the year then ended, in conformity with generally accepted accounting principles. These general purpose financial statements are the responsibility of the Borough's management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by Borough officials, and evaluating overall financial statement presentation. We believe that our audit provides a reasonable basis for our above opinion on the general purpose financial statements. As discussed in Note 16 to the general purpose financial statements, effective July 1, 1991, the Kodiak Island Hospital and Care Center Enterprise Fund changed its fiscal year end from December 31 to June 30. The results of operations for the Hospital's six months ended June 30, 1991 are included as a single line item in the Statement of Revenues, Expenses, Transfers and Changes in Fund Balance for the Year Ended June 30, 1992. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund, and individual account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Kodiak Island Borough. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is stated fairly in all material respects in relation to the general purpose financial statements taken as a whole. 1 1 KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1992 The accompanying notes are an integral part of these financial statements. 2 Governmental Fund Types Special Debt Capital General Revenue Service Projects ASSETS Current assets: Equity in central treasury S 60,325 $ 337,773 S 91,705 S 266,463 Temporary investments 4,679,257 1,501,163 6,043,724 4,651,388 Other cash and cash equivalents - - - - Investment in deferred compensation plan - - - - Receivables: State of Alaska 42,597 1,366,663 622,388 126,182 Federal Government 6,990 16,034 - - Property taxes, net of atlowance of $17,667 70,617 - - - Land sates contracts, due within one year - 300,000 - - other receivables, net 89,978 284,737 59,990 237,038 Due from other funds 679,453 3,244,634 100,000 78,391 Inventories - 172,749 - - Prepaid expenses 40,319 43,143 - - Assets whose use is limited: By Borough - - - Under malpractice funding arrangement - held by trustee - - - - By donor for specific purpose - - - - Equity in central treasury - - - - Temporary investments - - - - Interest receivable - - - - Land sales contracts receivable, due after one year - 1,294,823 - - Deposit on capital lease - - - Amount available to service long-term debt in Debt Service fund - - - - Amount to be provided to service long -term debt - - - - Fixed assets in service - - - - Accumulated depreciation - - - - Construction work in progress - - - - Total assets $5,669,536 $8,561,719 56,917,807 $5,359,462 The accompanying notes are an integral part of these financial statements. 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Proprietary Fiduciary Totals Fund Type Fund Type Account Groups (Memorarxk n Only) Agency General General Long - Enterprise Fund Type Fixed Assets Term Debt 1992 1991 $ 748,196 E E $ - $ 1,504,462 $ 1,605,644 16,875,532 16,314,695 34,616 142,622 - 177,238 1,374,086 - 837,084 - 837,084 710,336 - - 2,157,830 1,513,114 - - 23,024 41,924 - - - - 70,617 42,078 300,000 195,510 2,227,334 440 - - 2,899,517 2,360,629 200,000 - - - 4,302,478 2,387,785 209,878 - - - 382,627 364,744 142,464 - - 225,926 97,546 ' - - - 658,377 624,899 - - 624,899 257,990 10,051 - - 10,051 73,376 17,190 - - 17,190 33,946 505,674 - - 505,674 500,000 1,630 - - - 1,630 16,556 - - - 1,294,823 1,729,586 ' - - 67,976 - - 6,747,807 6,747,807 7,475,608 5,898,934 5,898,934 6,708,518 25,000,820 - 77,339,251 - 102,340,071 101,447,328 (5,833,832) - - (5,833,832) (4,847,882) 69,261 - 1,801,632 - 1,870,893 1,525,507 $23,958,181 $980,146 $79,140,883 812,646,741 $143,234,475 $142,654,977 3 EXHIBIT 1 KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1992 The accompanying notes are an integral part of these financial statements. 4 Governmental Fund Types Special Debt Capital General Revenue Service Projects LIABILITIES AND FUND EQUITIES Liabilities: Accounts payable E 126,636 $ 812,811 $ - $ 34,795 Retainage payable - - - 55,593 Accrued compensation - 833,433 - - Payroll taxes and employee benefits 45,655 1,005,654 - - Other accrued liabilities 3,376 412,368 - - Customer deposits - 300 - - Deferred and unrealized revenues - 1,705,249 - 483,368 Deferred compensation - - - - Due to other funds 3,512,292 227,586 170,000 257,600 Due to City of Kodiak - - - - Due to student organizations - Current portion of capital Lease obligation - - Capital lease obligation - - Accrued annual leave - - Environmental Protection Agency loan - - - - General obligation bonds payable - - - - Total liabilities 3,687,959 4,997,401 170,000 831,356 Fund equities and other credits: Contributions in aid of construction - - - - Investment in general fixed assets - - Retained earnings: Temporarily restricted - - - - Unreserved - - - - Fund balance: Reserved: Encumbrances - 84,642 - 975,171 Fuel inventory - 158,145 - - Health insurance - - - - PL -874 - 77,016 - - Prepaid expenses 40,319 43,143 - - Unreserved: Designated for subsequent year expenditures 1,941,258 261,669 6,747,807 1,560,743 Undesignated - 2,939,703 - 1,992,192 Total fund equities and other credits 1,981,577 3,564,318 6,747,807 4,528,106 Total liabilities, fund equities and other credits S 5,669,536 $ 8,561,719 $ 6,917,807 S 5,359,462 The accompanying notes are an integral part of these financial statements. 4 1 1 1 1 1 1 i 1 1 1 1 1 1 1 1 1 1 EXHIBIT 1 (Continued) Proprietary Fiduciary Totals Fund Type Fund Type Account Groups (Memorandum Only) Agency General General Long - Enterprise Fund Type Fixed Assets Term Debt 1992 1991 $ 375,262 S 1,886 S $ - S 1,351,390 $ 945,805 - - 55,593 24,170 407,913 - - - 1,241,346 752,624 1,051,309 1,146,099 50,000 - - - 465,744 940,210 23,949 - - - 24,249 34,484 - - 2,188,617 2,629,207 837,084 - 837,084 710,336 135,000 - - 4,302,478 2,252,785 24,480 - - - 24,480 - - 141,176 - 141,176 117,296 82,189 - - 82,189 24,922 387,373 - - 387,373 114,232 - - - 191,327 191,327 167,878 - - 260,414 260,414 281,248 - - - 12,195,000 12,195,000 13,735,000 1,486,166 980,146 12,646,741 24,799,769 23,876,296 19,109,292 - - 19,109,292 19,516,272 - - 79,140,883 79,140,883 78,729,928 10,051 - - - 10,051 - 3,352,672 - - - 3,352,672 3,525,740 - - - - 1,059,813 788,408 - - - - 158,145 50,345 ' - 200,000 77,016 154,032 - 83,462 69,340 - - - 10,511,477 10,981,446 - - - - 4,931,895 4,763,170 22,472,015 - 79,140,883 118,434,706 118,778,681 $23,958,181 $980,146 $79,140,883 $12,646,741 $143,234,475 $142,654,977 it KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES. EXPENDITURES. TRANSFERS AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES . YEAR ENDED JUNE 30, 1992 Special Revenues: General Revenue Property taxes S 3,537,851 S 418,706 Intergovernmental: State sources 2,443,109 16,689,625 Federal sources 7,230 1,697,732 � Land sale proceeds - 431,843 Insurance proceeds - - Severance taxes 530,083 - Asbestos settlement - Roof claim settlement - - Licenses, permits, fees and other local revenue 212,936 770,963 Investments and property 367,551 427.004 Total revenues 7,098.760 20.435,873 ' Expenditures: Current: Borough Assembly 124,650 - ' Mayors department 159,292 - Clerk's department 204,818 - Legal department 184,707 - Finance department 307,954 - Date services 229,521 - Assessment department 236,022 - Engineering facilities department 88,482 - Community development department 354,147 32,970 Building inspector 78,288 - Resource management 78,895 - Switchboard /word processing 80,986 - Community & Regional Affairs liaison - Economic development 45,946 - General administration 318,332 747,054 Emergency preparedness 19,328 - Educational support 27,510 18,353,975 ' Health and sanitation 478,324 1,962,631 Culture and recreation 190,700 - Oil spill cleanup - 66,544 Capital improvements: ' Schools - Service district maintenance - 211,619 General - 37,000 Debt service: Principal - - , Interest - - Fiscal agent fees - - Refunding bond issuance costs - - Other - - ' Total expenditures 3,207,902 21,411,793 Excess (deficiency) of revenues over (under) expenditures 3,890,858 (975,920 Other financing sources (uses): Operating transfers in 81,670 3,511,457 Proceeds of refunding bonds - - Operating transfers out (3,765,701) (2,680,148) Payment to refunded bond escrow agent - - ' Net other financing sources (uses) (3,684,031 831.309 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 206,827 (144,611) ' Fund balance at beginning of year 1,774,750 3,703,965 Adjustment to reserve for fuel inventory - 4,964 Fund balance at end of year $ 1,981,577 S 3,564,318 !I 'I The accompanying notes are an integral part of these financial statements. 6 EXHIBIT 2 Totals (Memorarxlm Only) Debt Capital Service Projects 1992 1991 E - S - S 3,956,557 S 3,163,663 - 799,971 19,932,705 21,207,220 - 1,704,962 2,019,397 - - 431,843 581,519 - - - 10,612 - - 530,083 - - 47,196 47,196 216,710 - 631,095 631,095 - - 25,505 1,009,404 992,729 347,882 217,309 1.359,746 1,656,900 347,882 1,721,076 29,603,591 29,848,750 - - 124,650 127,479 - - 159,292 207,326 - - 204,818 235,235 - - 184,707 143,481 - - 307,954 313,393 - - 229,521 197,025 - - 236,022 215,401 - - 88,482 149,898 - - 387,117 434,762 - - 78,288 78,218 - - 78,895 75,013 - - 80,986 57,398 - - - 3,171 - 45,946 49,854 - - 1,065,386 1,226,344 - - 19,328 3,081 - - 18,381,485 17,525,084 - - 2,440,955 2,267,893 - - 190,700 190,700 - - 66,544 409,989 - 1,308,945 1,308,945 1,038,556 - - 211,619 140,548 - 1,349,137 1,386,137 1,167,188 1,685,833 - 1,685,833 1,595,833 843,656 - 843,656 947,381 24,827 - 24,827 71,974 136,273 - 136,273 - 4,162 - 4.162 46 2,694.751 2,658.082 29,972.528 28,872,271 (2,346,869 (937,006 (368.937 976,479 2,204,252 1,512,694 7,310,073 11,096,881 4,875,000 - 4,875,000 - (721,457) (100,000) (7,267,306) (11,086,878) (4,738.727 - (4,738,727 - 1.619,068 1,412.694 179.040 10,003 (727,801) 475,688 (189,897) 986,482 7,475,608 4,052,418 17,006,741 16,055,851 - - 4.964 (35,592 56,747,807 54,528,106 516,821,808 517,006,741 7 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, I f EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND, SPECIAL REVENUE FUND AND DEBT SERVICE FUND YEAR ENDED JUNE 30, 1992 General Fund Variance - Favorable Budget Actual (Unfavorable) Revenues: Property taxes Intergovernmental: State sources Federal sources Land sale proceeds Severance taxes Licenses, permits, fees and other local revenue Investments and property Total revenues Expenditures: Current: Borough Assembly Mayor's department Clerk's department Legal department Finance department Data services Assessment department Engineering facilities department Community development department Building inspector Resource management Switchboard /word processing Community & Regional Affairs liaison Economic development General administration Emergency preparedness Educational support Health and Sanitation Culture and recreation Oil spill cleanup Capital improvements: Service District maintenance General Debt service: Principal Interest Fiscal agent fees Refunding bond issuance costs Other Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Proceeds of refunding bonds Operating transfers out Payment to refunded bond escrow agent Net other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Fund balance at beginning of year Adjustments to reserve for fuel inventory Fund balance at end of year S 3,489,570 $ 3,537,851 S 48,281 2,571,800 2,443,109 (128,691) 3,600 7,230 3,630 562,250 530,083 (32,167) 213,820 212,936 (884) 360,000 367,551 7,551 7,201,040 7,098,760 (102,280) 135,300 124,650 10,650 167,340 159,292 8,048 220,460 204,818 15,642 161,100 184,707 (23,607) ' 316,080 307,954 8,126 240,300 229,521 10,779 243,450 165,360 236,022 88,482 7,428 76,878 381,920 354,147 27,773 75,000 78,288 (3,288) 81,670 78,895 2,775 86,200 80,986 5,214 54,200 45,946 8,254 321,920 318,332 3,588 32,000 19,328 12,672 37,500 27,510 9,990 483,750 478,324 5,426 195,700 190,700 5,000 i 3,399,250 3,207,902 191,348 ' 3,801,790 3,890,858 89,068 81,670 81,670 - 9 (3,883,460) (3,765,701) 117,759 (3,801,790) (3,684,031) 117,759 S - 206,827 S 206,827 1,774,750 , $ 1,981,577 The accompanying notes are an integral part of these financial statements. 8 1 EXHIBIT 3 Special Revenue Funds Debt Service Funds Variance - Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) S 391,930 S 418,706 S 26,776 E - - 16,665,097 16,689,625 24,528 - - - 2,296,156 1,697,732 (598,424) - - - 370,000 431,843 61,843 - - - 1,011,550 770,963 (240,587) - - - 586,075 427,004 (159,071) 350,000 347,882 (2,118) 21,320,808 20,435,873 (884,935) 350,000 347,882 (2,118) 32,950 32,970 (20) 1,446,665 747,054 699,611 - - 18,992,165 18,353,975 638,190 - 2,118,764 1,962,631 156,133 200,000 66,544 133,456 - - - 265,390 211,619 53,771 - - - 37,000 (37,000) - - - - - 1,650,840 1,685,833 (34,993) 970,000 843,656 126,344 - 100,000 24,827 75,173 - - 136,273 (136,273) - - - 279,160 4,162 274,998 23,055,934 21,411,793 1,644,141 3,000,000 2,694,751 305,249 (1,735,126) (975,920) 759,206 (2,650,000) (2,346,869) 303,131 3,610,000 3,511,457 (98,543) 2,155,000 2,204,252 49,252 - 4,875,000 4,875,000 (2,620,290) (2,680,148) (59,858) (720,000) (721,457) (1,457) - - - (4,738,727) (4,738,727) 989,710 831,309 (158,401) 1,435,000 1,619,068 184,068 S (745,416) (144,611) S 600,805 $(1,215,000) (727,801) S 487,199 3,703,965 7,475,608 4,964 - S 3,564,318 S 6,747,807 9 Continued EXHIBIT 3 (Continued) KODIAK ISLAND BOROUGH t COMBINED STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND, SPECIAL REVENUE FUND AND DEBT SERVICE FUND YEAR ENDED JUNE 30, 1992 ' Totals (Memorandum Only) Variance - Favorable Budget Actual (Unfavorable) Revenues: Property taxes S 3,881,500 S 3,956,557 S 75,057 Intergovernmental: , 2 State sources 19,236,897 19,132,734 (104,163) Federal sources 2,299,756 1,704,962 (594,794) E Land sale proceeds 370,000 431,843 61,843 Severance taxes 562,250 530,083 (32,167) Licenses, permits, fees and other local revenue 1,225,370 983,899 (241,471) , Investments and property 1,296,075 1,142,437 (153,638) Total revenues 28,871,848 27,882,515 (989,333) Expenditures: Current: ` Borough Assembly 135,300 124,650 10,650 Mayor's department 167,340 159,292 8,048 Clerk's department 220,460 204,818 15,642 Legal department 161,100 184,707 (23,607) ' Finance department 316,080 307,954 8,126 Data services 240,300 229,521 10,779 Assessment department 243,450 236,022 7,428 Engineering facilities department 165,360 88,482 76,878 ' Community development department 414,870 387,117 27,753 Building inspector 75,000 78,288 (3,288) Resource management 81,670 78,895 2,775 Switchboard /word processing 86,200 80,986 5,214 Community & Regional Affairs aison liaison - - - ' Economic development 54,200 45,946 8,254 General administration 1,768,585 1,065,386 703,199 I Emergency preparedness 32,000 19,328 12,672 Educational support 19,029,665 18,381,485 648,180 Health and Sanitation 2,602,514 2,440,955 161,559 Culture and recreation 195,700 190,700 5,000 Oil spill cleanup 200,000 66,544 133,456 Capital improvements: Service District maintenance 265,390 211,619 53,771 General - 37,000 (37,000) , Debt service. Principal 1,650,840 1,685,833 (34,993) Interest 970,000 843,656 126,344 Fiscal agent fees 100,000 24,827 75,173 ' Refunding bond issuance costs - 136,273 (136,273) Other 279,160 4,162 274,998 4 h Total expenditures 29,455,184 27,314,446 2,140,738 Excess (deficiency) of revenues over (under) expenditures (583,336) 568,069 1,151,405 , Other financing sources (uses): Operating transfers in 5,846,670 5,797,379 (49,291) Proceeds of refunding bonds - 4,875,000 4,875,000 Operating transfers out (7,223,750) (7,167,306) 56,444 Payment to refunded bond escrow agent - (4,738,727) (4,738,727) Net other financing sources (uses) (1,377,080) (1,233,654) 143,426 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses $(1,960,416) (665,585) S 1,294,831 Fund balance at beginning of year Adjustments for fuel inventory 12,954,323 4,964 to reserve i Fund balance at end of year $12,293,702 The accompanying notes are an integral part of these financial statements. 10 , EXHIBIT 4 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPE - ENTERPRISE FUNDS YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 The accompanying notes are an integral part of these financial statements. 11 1992 1991 Revenues: Water sales E 352,480 S 208,129 Sewer service charges 394,028 265,031 Refuse collection 1,179,430 1,199,782 Sanitary services user fees 250,707 265,624 Patient and resident revenues 8,450,653 6,420,280 Installation charges 1,315 6,365 Other 240,353 159,8 Total revenues 10,868,966 8,525,024 Operating expenses: Personnel services 5,211,999 4,560,794 Waste collection 1,046,887 1,005,841 Purchased water and sewer treatment 522,657 355,196 Contracted services 1,160,785 1,096,364 Repairs and maintenance 329,655 260,229 Depreciation 843,048 723,576 Installation costs - 67,680 Bad debt 604,561 455,067 Supplies 831,365 752,104 Interest 27,592 8,590 General administrative 102,419 101,400 Lawsuit settlement - 669 Other 621,254 660,150 Total operating expenses 11,302,222 10,716,882 Operating loss (433,256) (2,191,858) Nonoperating revenues (expenses): Interest income 94,333 240,892 State revenue sharing 134,460 134,460 Loss on disposal of equipment (2,554) (938) Donor restricted gifts 11,774 93,249 238,013 467,663 Loss before operating transfers (195,243) (1,724,195) Operating transfers in 193,000 - Operating transfers out (245,694) (10,000) (52,694) (10,000) Net Loss (247,937) (1,734,195) Amortization of contributions in aid of construction 406,979 383,040 Increase (decrease) in retained earnings 159,042 (1,351,155) Adjustment for change in hospital year end (322,059) - Retained earnings at beginning of year 3,525,740 4,876,895 Retained earnings at end of year $ 3,362,723 S 3,525,740 The accompanying notes are an integral part of these financial statements. 11 EXHIBIT 5 ' KODIAK ISLAND BOROUGH COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE - ENTERPRISE FUNDS YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 i The accompanying notes are an integral part of these financial statements. 12 ' 1992 1991 Operating loss S (433,256 S(2,191,858 Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 843,048 723,576 Change in provision for uncollectible accounts 604,560 356,000 Changes in assets and liabilities: Accounts receivable - Customers and patients (174,903) (809,056) Other 76,618 48,394 Prepaid expenses (8,264) (13,751) Inventories at cost (15,874) 22,584 Due from other funds (204,400) - Accounts payable (190,911) 70,167 Customer deposits (10,235) 19,743 Estimated third party payor settlements (7,795) (47,644) Accrued expenses (52,756) (59,763) Due to City of Kodiak 24,480 - other accrued liabilities (669,891 708,851 Total adjustments 213,677 1,019,101 Net cash used for operating activities (219,579 (1,172.757 Cash flows from noncapital financing activities: State of Alaska, Revenue Sharing payments received 134,460 159,460 Operating transfers out to other funds (52,694 (10,000 Net cash provided by noncapital financing activities 81,766 149,460 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (208,775) (146,142) Proceeds from sale of equipment 560 - Principal payments made on capital lease (101,834) (12,485) Receipt of gifts restricted by donor for capital purchases 11,774 93,249 Deposit made on capital lease - (67,976 Net cash used for capital and related financing activities (298,275 (133,354 Cash flows from investing activities: Change in assets whose use is limited: By Borough - 109,190 Under malpractice funding arrangements (295,786) (257,990) By donor for specific purpose (904) (73,376) Interest and dividends on investments 109,259 240,129 Net cash provided by investing activities (187,431 17.953 Net change in cash and cash equivalents (623,519) (1,138,698) Cash and cash equivalents at beginning of year 2,098,060 3,236,758 Adjustment for hospital change in year -end (168,866 - Cash and cash equivalents at end of year $1,305.675 S 2,098,060 i The accompanying notes are an integral part of these financial statements. 12 ' KODIAK ISLAND BOROUGH NOTES TO FINANCIAL STATZNZNTS JUNE 30, 1992 NOTE 1 - SUNLIARY OF SIGNIFICANT ACCOUNTING POLICIES A. Scope and Presentation of Financial Statements The Kodiak Island Borough (Borough) was organized to perform the municipal duties allowed by Alaska Statutes and as directed by its residents. The accompanying financial statements include all funds, account groups, agencies and organizations over which the Borough exercises oversight responsibility. Oversight responsibility is derived from the Borough's power and includes, but is not limited to (a) financial interdependency, (b) selection of governing authority, (c) ability to significantly influence operations and (d) accountability for fiscal matters. The Borough reviewed its relationship with other organizations and determined that it exercised oversight responsibility over the following two organizations. Kodiak Island Borough School District: The Borough has delegated the operating responsibility for public education to the Kodiak Island Borough School District (School District). In accordance with statutes, the Borough retains ownership of the educationally related fixed assets and incurs the debt, if necessary, to finance the acquisition and construction of school facilities. The Borough Assembly approves the total annual budget of the School District and may, during the year, increase or decrease the total appropriation. The Borough levies and collects taxes for the School District. The various funds and the General Fixed Asset Account Group of the School District have been combined with similar fund types and account groups of the Borough. Kodiak Island Borough Hospital and Care Center: The Borough owns the Kodiak Island ' Borough Hospital and Care Center (Hospital) and related furnishings. The Borough has contracted the Hospital's operating activities to the Lutheran Health Systems Management Company, a North Dakota 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 also has a June 30 year end, although prior to June 30, 1991, the Hospital had a December 31 year end. See further discussion on ' the Hospital's year end change at Note 16. 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 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. 13 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 fund categories as follows: Governmental Fund Tvves General Fund - The General Fund is the general operating fund of the Borough. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest and related costs. Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for acquisition of equipment and acquisition or construction of major capital facilities. Proprietary Fund Type Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and /or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. Enterprise Funds are accounted for on a cost of services or capital maintenance measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with its activity are included on its balance sheet. Its reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. The Enterprise Fund operating statement presents increases (revenues) and decreases (expenses) in net total assets. Depreciation of all exhaustible fixed assets used by the Enterprise Funds is charged , as an expense against their operations on a straight -line basis over the following estimated useful lives: ' Unclassified utility plant in service 50 years Hospital building and improvements 25 -30 years 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. Type , Fiduciary Fund 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. 14 ' 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 are ' recorded as expenditures of the various Borough funds at the time of purchase and are subsequently capitalized in the General Fixed Assets Account Group. Such assets include land, buildings, equipment, furniture and other related assets. Public domain (infrastructure) general fixed assets consisting of certain improvements other than ' buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, are not capitalized. No depreciation has been provided on general fixed assets. ' All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. ' General Long -Term Debt - Long -term liabilities expected to be financed from Governmental Fund Types are accounted for in the General Long -Term Debt Account Group, not in the Governmental Fund Types. 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. B. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the combined financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. Governmental Fund Types are accounted for using the modified accrual basis of accounting. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to this general rule is principal and interest on general long -term debt which is recognized when due. ' Prepayment of insurance and similar services extending over more than one year is allocated to the years 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. The Proprietary Fund Type (Enterprise Fund) is accounted for using the accrual basis of accounting, wherein, revenues are recognized when earned and expenses are recognized when incurred. ' The Fiduciary Fund Type (Agency Fund) is accounted for using the modified accrual basis of accounting similar to that utilized by Governmental Fund Types. I 15 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 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. Severance Taxes Severance taxes are based on the amount and value of natural resources severed from the environment. Types of resources taxed include seafood, gravel and mineral resources, and timber. Severance tax returns are sent to the appropriate companies (as determined by the Borough assessor), and are returned to the Borough Finance Department. The returns are filed quarterly, and are due by the end of the month following the quarter's end. Borough severance tax revenues are recognized in the fiscal year in which they become measurable and available, generally when the return is filed and payment is received. To ensure accuracy of amounts of fish and other seafood caught, the Borough compares the amount of catch reported on the severance tax returns to amounts reported to the State of Alaska Department of Revenues and the State of Alaska Department of Fish & Game. For rock, gravel, and timber, the assessing office periodically does a site review of the mining /logging area to determine the reasonableness of gross amounts reported on the severance tax returns. Intergovernmental Revenue State of Alaska shared revenues, State of Alaska municipal assistance, State education - related entitlement programs and State levied taxes (the proceeds of which are distributed to local governments) are recorded in the fiscal year to which they relate, including accrual at year end if final payments due are measurable and received within approximately two to three months after year end. State of Alaska and Federal government cost reimbursable grants and contracts are recorded to the extent of allowable expenditures in the period in which the expenditures were incurred. 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 are recorded on the cash basis. 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 16 1 ' assets. Recognition of Governmental Fund Type revenues represented by noncurrent receivables is deferred until they are paid. Other local revenues are recorded on a basis consistent with their nature in relation to measurement and availability standards. C. Budgets and Budgetary Accounting Borough The Borough follows these procedures in establishing the budgetary data reflected in the combined financial statements: ' 1. 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. ' 2. Public hearings are conducted by the Borough Assembly to obtain taxpayer comments. ' 3. By June 10, the budget is legally enacted through passage of an ordinance by Borough Assembly action. If the Borough Assembly fails to pass an ordinance, the budget submitted by the Mayor becomes the adopted budget. ' 4. Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or administrative action. Generally, the following actions are required at the level of the particular change: ' (a) All new appropriations are authorized by an appropriation ordinance that amends the annual budget ordinance. (b) A resolution of the Borough Assembly is required to move (appropriate) amounts between departments and projects. (c) The administration is authorized and directed by the Borough Assembly to effect the necessary line item changes within the limits established ' by Items (1) and (2) above by project or department to properly monitor, account, and report receipts and expenditures. 5. Expenditures may not legally exceed appropriations at the following levels: General Fund - department level; Capital Projects Funds - project level; all other funds - fund level. 6. All funds, except Capital Projects Funds and the Oil Spill Clean Up Fund are ' budgeted on an annual basis encompassing a fiscal year. Budgets of Capital Project Funds and the oil Spill Clean Up Fund generally encompass the period from start up to project completion, which is generally greater than one year. ' 7. Appropriations lapse at year end to the extent that they have not been expended for all funds except Capital Projects Funds and the Oil Spill Clean Up Fund, which lapse at project completion. 8. Budgets adopted by the Borough Assembly are in accordance with generally accepted accounting principles. ' 9. Additional appropriations for certain funds were enacted during the year. 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. 17 n The School Board retains line item authority once the annual local appropriation is set by the Borough Assembly. In the year ended June 30, 1992, there were three formal budget revisions to adjust the revenues and expenditures to available resources and , program needs. Hospital Hospital operations are not legally required to be budgeted. D. Assets, Liabilities and Fund Equity INTERFUND TRANSACTIONS Transactions that would be treated as revenues, expenditures or expenses if they involved organizations external to the Borough are similarly treated if they occur between the fund types. Reimbursements from one fund to another are treated as expenditures or expenses of the reimbursing fund and a reduction of the expenditures or expenses of the reimbursed fund. Transfers from funds receiving revenues to funds through which the resources are to be expended, and operating loss subsidies are classified as operating transfers. Nonrecurring or nonroutine transfers of equity between funds are recorded as equity transfers. ENCUMBRANCES Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds and Capital Projects Funds. Encumbrances outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. INVENTORIES Borough Expendable operating supplies of the Borough are accounted for using the purchase method and, at June 30, 1992, there were no significant amounts of such items. School District The consumption method is used to account for the inventories of teaching, maintenance and foods supplies. These inventories are valued at the lower of average cost or market and beginning in fiscal year 1992 available fund balance was reserved for all inventories. Fuel inventory is accounted for by the purchase method and valued at cost (first -in, first -out). 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. 18 1 The commitment for accrued annual leave not included in the Governmental Fund Types is recorded in the General Long -Term Debt Account Group. Cash sufficient to pay the long -term debt is deposited in a Debt Service Fund. Enterprise Funds and the School District record leave (including sick leave) as earned. E. Cash Flows All highly liquid investments (including restricted assets) with original maturities of three months or less are considered cash equivalents for purposes of the statement of cash flows. This includes equity in central treasury and other cash and cash equivalents and also temporary investments and equity in central treasury which are classified as "assets whose use is limited." F. Reclassification Certain 1991 balances (memorandum only) have been reclassified to conform to the current year presentation. NOTE 2 - CASH AND TEMPORARY INVESTMENTS Cash balances of most Borough funds are pooled in a central treasury. Each fund type's portion of this pool is displayed on the combined balance sheet as "Equity in central treasury ". In addition, investments are separately held by several of the Borough's funds. Investments, other than the investment in the deferred compensation plan which is carried at market value, are carried at cost. Deposits At June 30, 1992, the carrying amount of the Borough's deposits was $1,693,700 and the bank balance was $2,625,570. The insured and collateral status of the year end bank balance was as follows: Status Amount Covered by federal depository insurance or by collateral held by the Borough's agent in the Borough's name $1,054,269 Uninsured and uncollateralized 1,571,301 Total deposits S2,625.570 Investments Statutes authorize the Borough to invest in obligations of the United States, the State of Alaska and its political subdivisions, savings accounts, certificates of deposit, banker's acceptances, repurchase agreements and such other legal security instruments. The Borough Code requires all investments to be collateralized and /or insured. Collateral pledged on investments is required to be held for the Borough by a third party bank. In accordance with Governmental Accounting Standards Board Statement No. 3 (GASB 3) investments are categorized as follows: Category 1 includes investments that are insured, or registered or for which the securities are held by the Borough or its agent in the Borough's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the Borough's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or by its trust department or agent but not in the Borough's name. Cateaory 1 Repurchase agreements $ 4,000,000 U.S. Government Securities 13,854,725 $1785 ICMA - Deferred Compensation Plan Money Market Account Total Investments Carrying 2 3 Amount S - $ S 4,000,000 13.854.725 S S - 17,854,725 837,084 166.621 518,8 0 19 Market Value S 4,016,013 13.938.236 17,954,249 837,084 166.621 $18.95 The above deposits of $1,693,700 and investments of $18,858,430 totalling $20,552,130, I are reported under the following captions in the combined financial statements: Equity in central treasury $ 1,504,462 Temporary investments 16,875,532 Other cash and cash equivalents 177,238 Investment in deferred compensation plan 837,084 Assets whose use is limited: Under malpractice funding arrangement held by trustee 624,899 By donor for purchase of equipment 10,051 Equity in central treasury 17,190 Temporary investments 505.674 Total deposits and investments $20.552,130 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, if any, sustained by the Hospital. The Borough received shared revenue from the State of Alaska in the amount of $124,533, required to be passed through to the Hospital. This amount was recorded as revenue by the Hospital. NOTE 5 - RETIREMENT COMMITMENTS As of June 30, 1992, substantially all employees of the Borough and School District participate in either the Alaska Public Employees' Retirement System (PERS, an agent multiple - employer PERS) or the Alaska Teachers' Retirement System (TRS, a cost - sharing, multiple - employer PERS). Borough personnel and School District classified personnel (except those working less than fifteen hours per week) participate in PERS. School District certificated personnel participate in TRS. Both systems are statewide defined benefit retirement plans, administered by the State of Alaska. Plan Descriptions and Provisions Public Employees' Retirement System (PERS Employees hired prior to July 1, 1986 with five or more years of credited service are entitled to annual pension benefits beginning at normal retirement age 55 or early retirement age 50. For employees hired after June 30, 1986, the normal and early retirement ages are 60 and 55, respectively. The normal pension benefit is equal to 2% of the member's three highest average monthly compensation for the first ten years of service, 2 -1/4% for the second ten years of service and 2 -1/2% for the third ten years of service. All service earned prior to July 1, 1986 will be calculated using the 2% multiplier. Employees with 30 or more years of credited service may retire at any age and receive a normal benefit. The system also provides death and disability benefits and major medical benefits. Under State law, covered employees are required to contribute 6.75% of their annual salary to the System and the Borough contributes the amount actuarially required in addition to employee contributions to finance the benefits of the system. 20 Teachers' Retirement Svstem (TRS The Teachers' Retirement System of Alaska is a joint contributory retirement system to provide benefits for teachers of the State of Alaska. All the School District's ' certificated employees are participants in TRS. Membership in TRS is compulsory for each certificated elementary or secondary teacher or other certificated personnel who are employed on a full -time or part -time basis in positions that require teaching certificates as a condition of employment. ' Employees with fifteen years or more of credited service are entitled to pension benefits beginning at normal retirement age (55) equal to 2% of their highest three -year average monthly compensation for each year of service. The Plan permits early retirement at age 50. Employees may elect to receive their pension benefits in the form of a joint or survivor annuity. Effective January 1, 1987, a married member who retires must receive his benefit in the form of a joint and survivor annuity unless the member's spouse consents to another form of benefit. Minimum benefits for employees eligible for retirement are $25 per month for each year of credited service. ' In addition, major medical benefits are provided. TRS also provides death and disability benefits. Under State law, covered employees are required to contribute 8.65% of their base ' salary. The School District is required to contribute the amount actuarially needed in addition to member contributions to finance the benefits of the System. Funding Status and Progress The pension benefit obligation is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the System on a going- concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the System. The pension benefit obligation was computed as part of an actuarial valuation as of June 30, 1991 (latest available) . Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets of 9 percent per year compounded annually, (b) projected salary increases of 6.5 percent a year for the first five years of employment and 5.5 percent per year thereafter and (c) health cost inflation of 9 percent per year. The pension benefit obligation of PERS and TRS as calculated in the most recent actuarial valuation is as follows ($ in thousands): PERS TRS (1) School All Borough District Employers Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $2,410 $4,264 $1,056,453 Current employees: ' Accumulated employee contributions including allocated investment earnings Employer- financed vested Employer- financed nonvested ' TOTAL PENSION BENEFIT OBLIGATION Net assets available for benefits, valued on a ' three year average ratio between market and book values of the System's assets except that fixed income investments are valued at book value ' UNFUNDED PENSION BENEFIT OBLIGATION 597 949 293,136 1,463 3,094 598,527 185 555 127,289 4,655 8,862 2,075,405 4,583 8,273 1,779,579 72) 589) S (295.826 21 (1) The TRS system does not make separate measurements of assets and pension benefit obligation for individual employers. Amounts for TRS represent the system as a whole. The School District's actuarially determined contribution was 1.6% of the total current year actuarially determined contribution requirements for all employers. Actuarially Determined Contribution Requirements and Contributions Made The funding policy provides for actuarially determined periodic contributions at rates that fund each participant's benefits under the plan as they accrue. The contribution rate for normal cost is determined using the projected unit credit actuarial funding method. The unfunded accrued benefit liability is amortized over twenty -five years. Actuarial funding surpluses are amortized over five years. The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation. The Systems have an actuarial valuation performed annually (as of June 30) which determines the contribution rates for the year ended two years subsequent to the valuation date. The contributions to the Systems for fiscal year 1992 were made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1990. The contributions ($ in thousands) consisted of the following: PERS PERS Borough School District TRS Percent of Percent of Percent of Covered Covered Covered Amount Payroll Amount Payroll Amount Payroll Covered payroll - $2.429 100.00 % 52.648 100.00 % $8.657 100.00 X Contributions - Normal cost - Total contributions paid $ 455 18.75 % $ 496 18.75 % $1,612 18.62 % Amortization of unfunded liability (funding surplus) (42 (1.75 (99 (3.75 164 1.90 TOTAL $ 413 17.00 % S 397 15.00 % $1.776 20.52 % Required contributions - Employer $ 249 10.25 % $ 218 8.25 % $1,028 11.87 % Employee 164 6.75 179 6.75 748 8.65 TOTAL S 413 17.00 % $ 397 15.00 % $1.776 20.52 % In addition to the required TRS contributions noted above, the School District made supplemental and arrearage payments of $42,062 during the year. Total current year payroll was $14,401,305. Valuation of Medical Benefits Medical benefits for retirees are provided by the payment of Medicare premiums from PERS and TRS. In fiscal 1992 the pre -65 monthly cost of $319 and post -65 cost of $121 (due to Medicare) were assumed such that the total blended rate for all retirees of $244 equals the present monthly premium rate. These medical premiums are then increased with the health inflation assumption. The actuarial cost method used for funding retirement benefits is also used to fund health benefits. 22 Historical Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. The pension benefit obligation has not been determined by the actuary for years prior to June 30, 1987. As a result, only ' information at June 30, 1991, 1990, 1989, 1988, and 1987 is available regarding the following trend indicators, ($ in thousands): 23 PERS School Borough District Net asset available for benefits: 1987 $ 2,222 $5,685 1988 2,896 7,111 1989 3,468 7,794 1990 4,227 8,751 1991 4,583 8,273 Pension benefit obligation (PBO): 1987 $ 1,929 $5,085 1988 2,680 6,477 1989 3,328 7,331 1990 3,888 7,467 1991 4,655 8,862 Net assets available for benefits as a percentage of PBO: 1987 115% 112% 1988 108 110 1989 104 106 1990 109 117 1991 98 93 Assets in excess (deficiency) of PBO: 1987 $ 294 $ 600 1988 216 634 1989 140 463 1990 339 1,284 1991 (72) (589) Annual covered payroll: 1987 $ 1,701 $2,431 1988 1,830 2,473 1989 2,131 2,526 1990 2,373 2,562 1991 2,418 2,615 1992 2,429 2,648 Assets in excess (deficiency) of PBO expressed as a percentage of annual covered payroll: 1987 16.07% 24.26% 1988 10.14 25.10 1989 5.90 16.20 1990 14.02 49.10 1991 (2.96) (22.24) Contribution rates: Employee 1987 6.75% 6.75% 1988 6.75 6.75 1989 6.75 6.75 1990 6.75 6.75 1991 6.75 6.75 1992 6.75 6.75 Employer 1987 4.27% 7.29% 1988 9.20 6.24 1989 9.20 6.24 1990 5.34 4.27 1991 7.55 5.24 1992 10.25 8.25 23 NOTE 6 - FIBED ASSETS A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1992 follows: The following is a summary of Enterprise Fund fixed assets at June 30, 1992: Unclassified utility plant in service $17,888,386 Hospital building and improvements 4,105,899 Equipment 2,966,260 Land 40,275 25,000,820 Less: accumulated depreciation (5,833,932 19,166,988 Construction work in progress 69,261 Net Fixed Assets S19,236,249 NOTE 7 - HOSPITAL CAPITAL LEASE OBLIGATION The Hospital leases equipment under a long -term lease agreement at an imputed 8.50% rate of interest. The unamortized cost of such equipment included in fixed assets at June 30, 1992 is $611,663. Amortization of the leased equipment is included in depreciation expense. Minimum lease payments for the remainder of the lease term are as follows: Year ending June 30, 1993 $ 110,613 1994 147,484 1995 147,484 1996 148,033 Total minimum lease payments 553,614 Less interest (84,052 Present value of minimum lease payments 469,562 Less current portion (82,189 Capital lease obligation S 387,373 7 24 1 k Balance at Balance at July 1, 1991 Additions ' Deductions June 30, 1992 Land $ 7,469,315 $ 37,000 $ - $ 7,506,315 Buildings 64,790,809 - - 64,790,809 Improvements other than buildings 842,139 - - 842,139 Machinery and equipment 4,134,553 307,887 242,452 4,199,988 Construction work in progress 1,493,112 308,520 - 1,801,632 $78,729,928 $653,407 $242,452 579,140,883 The following is a summary of Enterprise Fund fixed assets at June 30, 1992: Unclassified utility plant in service $17,888,386 Hospital building and improvements 4,105,899 Equipment 2,966,260 Land 40,275 25,000,820 Less: accumulated depreciation (5,833,932 19,166,988 Construction work in progress 69,261 Net Fixed Assets S19,236,249 NOTE 7 - HOSPITAL CAPITAL LEASE OBLIGATION The Hospital leases equipment under a long -term lease agreement at an imputed 8.50% rate of interest. The unamortized cost of such equipment included in fixed assets at June 30, 1992 is $611,663. Amortization of the leased equipment is included in depreciation expense. Minimum lease payments for the remainder of the lease term are as follows: Year ending June 30, 1993 $ 110,613 1994 147,484 1995 147,484 1996 148,033 Total minimum lease payments 553,614 Less interest (84,052 Present value of minimum lease payments 469,562 Less current portion (82,189 Capital lease obligation S 387,373 7 24 1 k NOTE 8 - LONG -TERM DEBT: The following is a summary of long term debt payable for the year ended June 30, 1992: Type of Debt Environmental Protection Agency Asbestos Abatement Loan Principal Interest Pavments Issue Maturity Rates Dates Date Date Dates Amount 0.0 %* - 6/20/85 11/8/05 12/31/92 S 10,417 06/30/93 to 10,417 06/30/04 x 23 12/31/04 10.406 260.414 General Obligation Variable Rate Demand bonds General Obligation School Refunding Bonds General Obligation School Refunding Bonds Variable Quarterly 5/28/86 6/1/96 Refunded - 7/15/91 6.6 -8% 8/1 -2/1 5/1/89 8/1/2000 4.65 -5.9% 6/1 -12/1 7/15/91 6/1/96 * Interest free unless delinquent; then 7% plus fees and penalties. 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 26 8.105.000 12/1/92 795,000 6/1/93 250,000 12/1/93 780,000 6/1/94 250,000 12/1/94 765,000 6/1/95 250,000 12/1/95 750,000 6/1/96 250.000 4.090.000 $12.455.414 26 Authorized Prior Years Balance at Year Amount Issued Retired July 1, 1991 1985 $ 375,000 $ 375,000 $ 93,752 $ 281,248 S 1986 9,930,000 9,930,000 4,930,000 5,000,000 Current Year Balance at Issued Retired June 30, 1992 S 20,834 S 260,414 5,000,000 - 1989 10,000,000 10,000,000 1,265,000 8,735,000 - 1991 4,875,000 - - - 4,875,000 $25,180,000 $20,305,000 $5,288,752 $14,016,248 54,875,000 630,000 8,105,000 785.000 4,090,000 $6,435,834 $12,455,414 27 A summary of long -term debt as of and for the year ended June 30, 1992 follows: ti Balance at Balance at July 1, 1991 Additions Deductions June 30, 1992 General obligation bonds $13,735,000 $4,875,000 $6,415,000 $12,195,000 EPA loan payable 281,248 - 20,834 260,414 Accrued annual leave 167,878 23,449 - 191,327 $14,184,126 54.898,449 $6,435.834 $12,646,741 , The annual requirements to amortize all general obligation debt and the EPA loan payable , outstanding as of June 30, 1992, including interest payments of $3,239,793 on the general obligation debt, are as follows: June 30, 1993 $ 2,480,349 ' 1994 2,409,212 1995 2,343,080 1996 2,271,503 1997 1,231,770 1998 1,224,144 r 1999 1,226,761 2000 1,219,213 2001 1,216,258 2002 -2005 72,917 t 515,695,207 The amount of $6,747,807 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. General Obligation Bond Refunding - 1989 In 1989 the Borough sold $10,000,000 general obligation bonds to advance refund 1980 Series general obligation bonds totalling $9,495,000. The proceeds of the refunding issue were placed in a special escrow account and together with the interest earnings of the escrow account were used to redeem the 1980 Series Bonds on August 1, 1990. The 1980 bonds were subject to redemption prior to maturity. Demand Bond Refunding - 1991 On July 15, 1991, the Kodiak Island Borough issued $4,875,000 in general obligation bonds with an average interest rate of 5.4% to refund $4,750,000 of the outstanding 1986 Series bonds with a variable interest rate. The net proceeds of $4,738,047 (including receipt of accrued interest in the amount of $20,409 and after payment of $156,682 in underwriting fees, discount on the bonds, insurance, and other issuance costs) were used to redeem the 1986 bond issue. The 1986 bonds were subject to redemption prior to maturity. The Borough issued the 1991 bonds and refunded the 1986 bonds to reduce its total debt service payments over the next five years by approximately $100,000, and to obtain an estimated economic gain (difference between the present values of the debt services payments on the old and new debt) of approximately $93,500. The gain is based on receiving future debt service reimbursements from the State of Alaska at the rate structure currently in effect. The reimbursements are, however, subject to annual appropriation and may change. The refunded bonds referred to above have been appropriately eliminated from long -term debt ' and the advance refunding bonds added. 28 1 1 NOTE 9 - CAPITAL PROJECTS FUNDS CONSTRUCTION COMMITMENTS A summary of Capital Projects Funds construction commitments at June 30, 1992 follows: Various Borough Projects $ 934,874 State Capital Grants Fund 40.297 S 975,171 Resources are presently available or committed to finance construction commitments at June 30, 1992 for all funds except the School Bond Improvements Fund. The additional resources required in this fund will be available during fiscal year 1993. NOTE 10 - ENTERPRISE FUNDS SEGMENT INFORMATION The Borough owns and operates a Water and Sewer Utility Fund and a Sanitary Services Fund. The Kodiak Island Hospital and Care Center is included in the Borough's financial statements as a component unit. Segment financial data as of and for the year ended June 30, 1992 for the Sanitary Services, Water and Sewer Utilities and Hospital are as follows: Sanitary Water Sewer Services Utility Utility Hospital Total Operating revenues $1,441,854 $ 378,872 $ 417,415 18,630,825 $10,868,966 Depreciation expense 102,142 109,653 196,612 434,641 843,048 Operating loss (256,276) (35,137) (138,007) (3,836) (433,256) Operating grants 134,460 134,460 Operating transfers in 18,000 87,500 87,500 - 193,000 Operating transfers out (20,694) (200,000) (25,000) - (245,694) Net income (loss) (258,970) (131,484) (60,472) 202,989 (247,937) Contributions in aid of construction: Amortization 100,744 109,645 196,590 i 406,979 Property, plant and equipment additions 86,717 10,195 18,396 93,467 208,775 Net working capital (225,562) 81,831 108,189 2,299,237 2,263,695 Total assets 2,299,052 5,344,452 9,123,244 7,191,433 23,958,181 Total equity 2,052,674 5,285,447 9,085,085 6,048,809 22,472,015 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 1 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. NOTE 12 - MALPRACTICE INSURANCE AND RELATED LITIGATION: As of January 1, 1990, the Hospital has self- insured itself for medical malpractice claims up to a maximum of $500,000 per occurrence and $1,000,000 in aggregate. In addition, the Hospital has purchased stop loss insurance for claims up to $3,000,000 per occurrence and $6,000,000 in aggregate. The Hospital is required to deposit money into a fund, up to $1,000,000 which is held by a trustee. The balance in the fund at June 30, 1992 is $624,899 and is principally invested in U.S. Government obligations and is valued at cost, which approximates market. Prior to January 1, 1990 the Hospital was insured under a claims -made 1 29 1 policy. The Hospital has not purchased tail coverage and therefore, claims based on , occurrences prior to January 1, 1990 but reported subsequently will be uninsured. NOTE 13 - INDIVIDUAL FUND DISCLOSURES Interfund Receivables and Pavables A summary of interfund receivables and payables at June 30, 1992 is as follows: Receivable Pavable General Fund $ 679,453 $3,512,292 Special Revenue Funds - Mental Health Center - 11,453 Special Revenue Funds - Coastal Management - 21,000 Special Revenue Funds - Day Care - 8,100 Special Revenue Funds - Education 2,185,893 28,391 Special Revenue Funds - Land Sales 900,000 - Special Revenue Funds - Building and Grounds - 70,000 Special Revenue Funds - Community and Regional Affairs - 2,300 Special Revenue Funds - Oil Spill Cleanup 158,741 86,342 Debt Service Fund - Other 100,000 - Debt Service Fund _ - School Bonds - 170,000 Capital Project Funds - Various Borough Projects - 237,600 Capital Project Funds - School Equipment and Furnishings 28,391 - Capital Project Funds - State Capital Grants 50,000 - Capital Project Funds - School Major Maintenance - 20,000 Enterprise Funds - Sanitary Services - 135,000 Enterprise Funds - Water Utility 100,000 - Enterprise Funds - Sewer Utility 100,000 - 84,302,478 $4,3 Fund Deficits The fund deficits at June 30, 1992 are as follows: Special Revenue funds - Coastal Management $ 20 Community and Regional Affairs 2,526 $ 2,546 These deficits will be funded in fiscal year 1993 through transfers from other funds. Interfund Transfers Interfund operating transfers have been made in accordance with budget ordinances with the exception of the transfer of the funding of long -term annual leave. Funds are transferred from one fund to support expenditures of other funds in accordance with the authority established for the individual fund. Transfers between fund types during the year ended June 30, 1992, were as follows: 30 Transfers In Special Debt Capital Transfers General Revenue Service Projects Enterprise Out Fund Funds Funds Funds Funds Fund Type Operating transfers: General Fund $3,765,701 S - $3,500,000 S 15,774 S 222,000 $ 18,000 Special Revenue 2,680,148 81,670 10,000 2,188,478 400,000 - Debt Service 721,457 - 1,457 - 720,000 - Capital Projects 100,000 - - - 100,000 - Enterprise 245,694 - - 70,694 175,000 Total Operating Transfers $7,513,000 581.670 $3,511,457 $2,204,252 $1,512,694 $193,000 30 Excess of Expenditures Over Appropriations General Fund The following departments' expenditures exceeded their appropriations: Department Excess Legal Services $23,607 Building Inspector 3,288 S26,895 The following funds' expenditures exceeded their appropriations: Special Revenue Funds Fund Excess Coastal Management $ 20 Road Bay View 606 626 Enterprise Funds Fund Excess Sanitary Services $101,041 Water 10,009 Sewer 181,022 $292,072 Proprietary Funds' reconciliation of Fund equity for the year ended June 30, 1992. Sanitary Water Sewer Services Utility Utility Hospital Total Fund equity at beginning of year $2,311,644 $5,416,931 $9,145,557 56,167,879 (23,042,011 Net loss (258,970) (131,484) (60,472) 202,989 (247,937) Adjustment for change in year end - - (322,059 (322,059 Fund equity at end of year $2,052,674 $5,285,447 $9,085,085 $6,048,809 $22_ 4 NOTE 14 - CONTINGENCIES Litigation Oil Spill - The Borough is involved in litigation seeking recovery from Exxon and others for damages it sustained as a result of the Exxon oil Spill. Although the Borough's claim is in excess of $1,000,000, at this time it is not possible to determine the amount, if any, of damages it will ultimately be awarded. General - The Borough, in the normal course of its activities, is involved in various claims and pending litigation. In the opinion of management, the disposition of the claims and litigation is not presently expected to have a material adverse effect on the Borough's financial statements. In addition, management feels that all the material risks that the Borough is exposed to have been adequately insured via commercial insurance and the Hospital self insurance trust. 11 31 Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by the grantor agencies. Any disallowed claims, including amounts already collected, would become a liability of the General or other applicable funds. In management's opinion, disallowances, if any, will be immaterial. NOTE 15 - EFFECT ON FUTURE YEARS OF GASB 14 I14PLEMMATION In June 1991 the Governmental Accounting Standards Board issued Statement No. 14, The Financial Reporting Entity which is effective for fiscal periods beginning after December 15, 1992. GASB Statement No. 14 changes the basis for determining which component units should be included in the financial statements of the financial reporting entity. GASB Statement No. 14 also prescribes that the financial statements of most component units be displayed in the financial statements of the financial reporting entity in a separate column or columns called "discrete presentations" rather than by "blending" those financial statements into the fund types of the primary reporting entity. Implementation of GASB Statement No. 14 is expected to have the following effect on the general purpose financial statements of the Borough: The Kodiak Island Borough School District and the Kodiak Island Hospital and Care Center will be presented as discrete component units, rather than blended into fund types. NOTE 16 - HOSPITAL CHANGE OF YEAR END Effective July 1, 1991, the Kodiak Island Hospital and Care Center changed its fiscal year end from December 31 to June 30, to conform to that of the Kodiak Island Borough. Accordingly, the Hospital was audited for the year ended December 31, 1990, the six month period ended June 30, 1991, and for the year ended June 30, 1992. To illustrate the effect of the change in year end, the general purpose financial statements include a line item entitled "Adjustment for change in year end." This line represents the net loss for the six month period ended June 30, 1991. The prior year (Memorandum only) columns include financial information as of and for the year ended December 31, 1990 for comparison purposes only. The following summarizes key financial information of the Hospital as of and for the six months ended June 30, 1991: Current assets $3,926,197 Total revenues $4,672,392 Total assets 8,103,770 Current liabilities 1,768,358 Total expenses 4,994,451 Total liabilities 2,257,950 Fund balance 5,845,820 Net Loss $ (322 32 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. 33 EXHIBIT A -1 ASSETS Equity in central treasury Temporary investments Total cash and investments KODIAK ISLAND BOROUGH GENERAL FUND BALANCE SHEET JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 Receivables: Accounts receivable State of Alaska Federal government Due from other funds Property taxes: Delinquent taxes Allowance for uncollectible delinquent taxes Accrued interest receivable Net receivables Prepaid expenses Total assets LIABILITIES AND FUND BALANCE Liabilities: Accounts payable Payroll taxes and employee benefits Due to other funds Other accrued liabilities Total liabilities Fund Balance: Reserved - prepaid expenses Unreserved - designated for subsequent year expenditures Total liabilities and fund balance 1992 1991 $ 60,325 4,679,257 $ 120,251 3,586,982 4 3,707,233 23,820 - 42,597 49,310 6,990 - 679,453 - 88,284 59,745 (17,667) (17,667) 11 ,tee ,e 889,635 139,654 40,319 37,250 $5,669,536 $3,SM,137 $ 126,636 E 92,897 45,655 18,167 3,512,292 1,995,115 3,376 3,208 3,687,959 2,109,387 40,319 37,250 1,941,258 1,737,500 $5,669,536 $3.884,137 34 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, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Investments and property: Interest income 360,000 364,833 4,833 Variance - Gain on exchange 2,718 2,718 24,556 Favorable 1991 7,551 Budget Actual (Unfavorable) Actual Revenues: Property taxes: Real $2,361,200 $2,436,524 S 75,324 $1,806,671 Personal 441,870 428,400 (13,470) 355,227 Motor vehicle 180,000 167,056 (12,944) 175,433 Penalty and interest 65,000 83,127 18,127 41,129 Payments in Lieu of taxes 441,500 422,744 (18,756 445,469 Total property taxes 3,489,570 3,537,851 48,281 2,823,929 Intergovernmental: State sources: State shared revenue 684,000 594,576 (89,424) 581,772 Municipal assistance 528,490 543,407 14,917 581,558 Raw fish tax 1,350,000 1,295,921 ✓ (54,079) 1,082,779 Electric co -op tax 8,700 8,677 (23) 7,055 Miscellaneous 610 528 (82 724 Total State sources 2,571,800 2,443,109 (128,691) 2,253,888 Federal sources 3,600 7,230 3,630 2,063 Total intergovernmental revenue 2,575,400 2,450,339 (125,061 2.255.951 Severance taxes: Fish 490,230 428,511 (61,719) - Mining 740 5,567 4,827 - Logging 71,280 96,005 24,725 - TotaL severance taxes 562,250 530,083 (32.167 - Licenses, permits, fees and other local revenues: Building and trailers 25,000 25,489 489 14,770 Subdivision and zoning fees 9,500 8,343 (1,157) 8,537 Sate of copies 5,000 7,299 2,299 5,923 Switchboard services 15,000 13,027 (1,973) 15,496 Emergency medical services 33,000 48,624 15,624 26,817 Miscellaneous 126,320 110,154 (16,166 29,325 Total Licenses, permits, fees and other local sources 213,820 212,936 (884 100,868 Investments and property: Interest income 360,000 364,833 4,833 431,825 Gain on exchange 2,718 2,718 24,556 Total investments and property 360,000 367,551 - 7,551 456,381 Total revenues $7,201,040 $7,098,760 S002,280 $5,637,129 Continued 35 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, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Expenditures: 1 Borough Assembly z Mayor's department 3 Clerk's department F egal services inance department ,o Data services � Assessment department 4 Engineering facilities department I Community development 13 Building inspector Resource management Switchboard /word processing Community & Regional Affairs liaison i(, Economic development iz General Administration ru Emergency preparedness iS Educational support I Health and sanitation q Culture and recreation Total expenditures i+ � Variance - Favorable 1991 Budget Actual (Unfavorable) Actual S 135,300 S 124,650 S 10,650 S 127,479 167,340 159,292 8,048 207,326 220,460 204,818 15,642 235,235 161,100 184,707 (23,607) 143,481 316,080 307,954 8,126 313,393 240,300 229,521 10,779 197,025 243,450 236,022 7,428 215,401 165,360 88,482 76,878 149,898 381,920 354,147 27,773 376,662 75,000 78,288 (3,288) 78,218 81,670 78,895 2,775 75,013 86,200 80,986 5,214 57,398 - - - 3,171 54,200 45,946 8,254 49,854 321,920 318,332 3,588 368,463 32,000 19,328 12,672 3,081 37,500 27,510 9,990 43,633 483,750 478,324 5,426 411,000 195,700 190,700 5,000 190,700 3,399,250 3,207,902 191,348 3,246,431 36 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Excess of revenues over expenditures Operating transfers in: Special Revenue: Land Sales Capital Projects: Various Borough Projects Operating transfers out: Special Revenue: Education Mental Health Buildings and grounds Debt Service: Other Capital Projects: Various Borough projects Enterprise Funds: Sanitary services Hospital Net operating transfers out Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Fund balance at end of year EXHIBIT A -2 (Continued) Variance - Favorable 1991 Budget Actual (Unfavorable) Actual S 3,801,790 S 3,890,858 S 89,068 S 2,390,698 81,670 81,670 - 73,230 - - - 100,000 81,670 81,670 - 173,230 3,000,000 3,000,000 - 2,100,000 200,000 200,000 - 210,000 300,000 300,000 - 460,000 9,000 15,774 (6,774) 325 222,000 222,000 - 18,000 18,000 - - 134,460 9,927L,, 124,533 - 3,883,460 3,765,701 117,759 2,770,325 (3,801,790) (3,684,031) 117,759 (2,597,095) $ - 206,827 $206,827 (206,397) 1,774,750 1,981,147 S 1,981,577 5 1,774,750 37 EXHIBIT A -3 KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Variance - Favorable 1991 Budget Actual (Unfavorable) Actual Expenditures: Borough Assembly: Personnel Services Fringe benefits Support, goods & services Lobbyist Total Mayor's department: Personnel services Fringe benefits Support, goods & services Total Clerk's department: Personnel services Fringe benefits Consultant Support, goods & services Capital Outlay Total Legal services: Legal fees Support, goods & services Total Finance department: Personnel services Fringe benefits Support, goods & services Capital outlay Allocated to projects Total Data Services: Personnel services Fringe benefits Contracted services Support, goods & services Capital outlay Allocated to projects Total S 16,800 $ 16,800 $ - $ 15,400 1,500 1,573 (73) 891 64,000 60,981 3,019 66,450 53,000 45,296 7,704 44,738 135,300 124,650 10,650 127,479 99,010 101,438 (2,428) 139,219 38,550 30,323 8,227 39,531 29,780 27,531 2,249 28,576 167,340 159,292 8,048 207,326 121,070 108,647 12,423 128,712 42,630 34,855 7,775 35,335 - - - 2,500 56,760 60,529 (3,769) 67,112 - 787 (787) 1,576 220,460 204,818 15,642 235,235 140,000 135,028 4,972 123,612 21,100 49,679 (28,579) 19,869 161,100 184,707 (23,607) 143,481 204,500 210,459 (5,959) 201,722 69,960 57,387 12,573 68,668 38,620 30,489 8,131 43,003 3,000 11,580 (8,580) - - (1,961) 1,961 - 316,080 307,954 8,126 313,393 202,520 203,930 56,780 56,858 4,100 5,038 76,900 81,328 35,000 23,125 (135,000) (140,758) 240,300 229,521 (1,410) 178,414 (78) 48,941 (938) 6,825 (4,428) 59,564 11,875 47,072 5,758 (143,791) 10,779 197,025 38 Continued 39 EXHIBIT A -3 (Continued) KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Variance - Favorable 1991 Budget Actual (Unfavorable) Actual Assessment department: Personnel services S 158,440 S 159,242 S (802) E 146,081 Fringe benefits 58,310 50,729 7,581 47,192 Contracted services 4,000 4,076 (76) 106 Support, goods & services 22,700 21,975 725 21,668 Capital outlay - - - 354 Total 243,450 236,022 7,428 215,401 Engineering facilities department: Personnel services 145,000 142,137 2,863 123,894 Fringe benefits 53,210 48,699 4,511 49,698 Contracted services 25,000 2,149 22,851 20,834 Support, goods & services 22,150 16,073 6,077 23,109 Capital outlay - - - 969 Allocated to projects (80,000) (120,576) 40,576 (68,606) Total 165,360 88,482 76,878 149,898 Community development department: Personnel services 258,230 246,778 11,452 235,637 Fringe benefits 106,680 83,547 23,133 74,977 Contracted services 1,400 2,186 (786) 5,584 Support, goods & services 35,410 37,248 (1,838) 49,155 Capital outlay 5,200 11,514 (6,314) 23,079 Allocated to projects (25,000) (27,126) 2,126 (11,770) Total 381,920 354,147 27,773 376,662 Building inspector: Contracted services 75,000 78,184 (3,184) 78,036 Support, goods & services - 104 (104) 182 Total 75,000 78,288 (3,288) 78,218 Resource management: Personnel services 53,650 55,836 (2,186) 51,313 Fringe benefits 24,080 19,706 4,374 21,381 Support, goods & services 3,940 3,353 587 4,358 Capital outlay - - - 1,311 Allocated to projects - - - (3,350) Total 81,670 78,895 2,775 75,013 Switchboard /Word processing: Personnel services 47,520 53,726 (6,206) 44,000 Fringe benefits 18,680 14,035 4,645 11,427 Support, goods & services 20,000 13,225 6,775 1,971 Total 86,200 80,986 5,214 57,398 Community & Regional Affairs liaison: Support, goods & services - - - 3,171 Total - - 3,171 Continued 39 EXHIBIT A-3 (Continued) KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Variance - Favorable 1991 Budget Actual (Unfavorable) Actual Economic development: General services - Contracted services $ 39,200 S 27,719 $ 11,481 S 28,441 Support, goods & services - 3,227 (3,227) 1,413 Contributions - Kodiak Chamber of Commerce - - - 5,000 Kodiak Convention Bureau 15,000 15,000 - 15,000 Total 54,200 45,946 8,254 49,854 General administration: Fringe benefits 16,000 15,672 328 39,950 Audit expense 121,000 126,160 (5,160) 103,738 Support, goods & services 184,920 176,500 8,420 205,022 Capital outlay - - - 19,753 Total 321,920 318,332 3,588 368,463 Emergency preparedness: Personnel services - 79 (79) - Fringe benefits - 17 (17) - Support, goods & services 7,000 15,113 (8,113) 3,081 Capital outlay 25,000 4,119 20,881 - Total 32,000 19,328 12,672 3,081 Education support: School support - Audit expense 37,500 27,510 9,990 23,633 Capital outlay - - - 20,000 Total 37,500 27,510 9,990 43,633 Health and sanitation: Emergency medical services 32,450 26,799 5,651 26,994 Animal control 48,000 48,676 (676) 35,740 Council on Alcoholism 50,000 50,000 - 60,000 State Health Services Villages 25,800 25,800 - 25,800 State Health Services KANA 8,600 8,600 - 8,600 Warren's Resource Crisis 34,900 34,900 - 34,900 American Red Cross 2,000 2,000 - 2,000 Alaska Legal Services 7,000 7,000 - 7,000 Kodiak Baptist Mission 60,000 60,000 - 60,000 Small World (Day Care) 18,000 18,000 - 18,000 Special Olympics 3,000 3,000 - 3,000 Health Center Support 2,000 2,110 (110) 1,966 Senior Citizen Support 24,000 24,000 - 24,000 Kodiak Respite Care 3,000 3,000 3,000 Detox 40,000 40,000 - 50,000 Ambulance service 125,000 124,439 561 50,000 Total 483,750 478,324 5,426 411,000 40 KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 EXHIBIT A -3 (Continued) 41 Variance - Favorable 1991 Budget Actual (Unfavorable) Actual Culture and recreation: KMXT Public Radio S 12,000 S 12,000 $ - S 12,000 Historical Society 9,000 9,000 - 9,000 Summer Basketball 3,000 3,000 - 3,000 Crime Stoppers - - - 1,500 Kodiak Island Sport Association 2,500 2,500 - 2,500 Kodiak Art Council 12,000 12,000 - 12,000 Village Libraries 18,000 18,000 - 18,000 Chiniak Public Library 3,000 3,000 - 3,000 City of Kodiak Library 58,000 58,000 - 58,000 Head Start 8,200 8,200 - 8,200 Kodiak College 34,000 34,000 - 34,000 Kodiak Little League 2,000 2,000 - 2,000 Kodiak Library Association 1,500 1,500 - 1,500 Santa in the Villages 1,000 1,000 - 1,000 Karluk IRA Council 20,000 20,000 - 20,000 KANA Dorms 10,000 5,000 5,000 5,000 Elks Fireworks 1,500 1,500 - - Total expenditures 195,700 190,700 5,000 190,700 Operating transfers out: Special Revenue - Education 3,000,000 3,000,000 2,100,000 Mental Health 200,000 200,000 - 210,000 Buildings and grounds 300,000 300,000 - 460,000 Debt Service - Other 9,000 15,774 (6,774) 325 Capital Projects - Various Borough projects 222,000 222,000 - - Enterprise Funds - Sanitary services 18,000 18,000 - - Hospital 134,460 9,927 124,533 - Total operating transfers out 3,883,460 3,765,701 117,759 2,770,325 Total $7,282,710 $6,973,603 $309,107 $6,016,756 41 SPECIAL REVENUE FUNDS These funds are used to account for revenues from specific taxes or other ear - marked revenue sources which by law are designated to finance particular functions or activities of government. FIRE AND ROAD SERVICE DISTRICTS These funds account for the activities related to service districts established by the voters within the district to provide road services and fire protection within the service area. MENTAL HEALTH CENTER This fund accounts for the operations of a mental health center financed by State of Alaska grants and contracts and user fees. COASTAL MANAGEMENT This fund accounts for State of Alaska and Federal grants related to the effects of coastal energy development impacts. Expenditures of these grants are for comprehensive plans, coastal sensitivity analysis, outer continental shelf impact analysis, ordinance update and planning and zoning. DAY CARE This fund accounts for a State of Alaska grant to finance day care for children of low- income, employed families. EDUCATION This fund accounts for the operations of the Kodiak Island Borough School District. The School District is a component unit of the Kodiak Island Borough. LAND SALES ' This fund accounts for the disposal of Borough -owned lands. The proceeds of land disposals are generally used for the management of Borough lands and the repairs and maintenance of school buildings. BUILDING AND GROUNDS This fund accounts for the operations and maintenance of certain buildings and grounds owned by the Borough which are jointly shared with the City of Kodiak, the Kodiak Island Borough School District, the State of Alaska and certain non- profit community organizations. LIGHTING DISTRICT This fund accounts for activities related to the Woodland Acres Lighting District established by the voters within the district to provide street lighting within the service area. COMMUNITY AND REGIONAL AFFAIRS This fund accounts for the reimbursable expenditures of the Kodiak Regional ' Office of the State of Alaska, Department of Community and Regional Affairs. Expenditures include postage, telephone, copy costs, and office equipment. Revenue is generally in the form of reimbursement in the same amount as billable expenditures. ' 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. 1 43 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 ASSETS Equity in central treasury Temporary investments Other cash and cash equivalents Receivables: State of Alaska Federal government Land sales contract, due within one year Accrued interest Other Allowance for doubtful receivables Due from other funds Inventories Prepaid expenses Land sales contracts receivable, due after one year Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Salaries payable Payroll taxes accrued and withheld Employee benefits accrued and withheld Customer deposits Deferred and unrealized revenues Due to other funds Other Total liabilities Fund balance: Reserved: Encumbrances Fuel inventory Health Insurance PL -874 Prepaid expenses Unreserved - Designated: Subsequent year expenditures Undesignated Total fund balances Total liabilities and fund balances Fire Road Women's Monashka District Women's Bay View Area 1 B_ av Bay One Bay Road S 64,798 $29,501 $10,765 $41,484 $74,528 $2,322 384,054 - - - - - 805 - - - - - 3,738 1,418 328 4,023 22,770 75 $453,395 $30,919 $11,093 $45,507 $97,298 52,397 , 5 1,010 S 830 $ - 8 - S 903 5 - 466 - - - 300 - - - 1,476 1,130 - 903 - 451,919 29,789 11,093 45,507 96,395 2,397 451,919 29,789 11,093 45,507 96,395 2,397 $453,395 830,919 $11,093 $45,507 $97,298 52,397 44 EXHIBIT B -1 Federal and State Grant Programs Mental Coastal Building Woodland Community Totals Health Manage- and Acres & Regional Oil Spilt Center ment Day Care Education Land Sales Grounds Lighting Affairs Cteanuo 1992 1991 S 396 $ 534 S 53 $ 70,118 $ 13,248 $ 3,412 (6,001 $ 94 $20,519 S 337,773 S 349,388 - - - - 617,109 500,000 - - - 1,501,163 1,941,891 - - - - - - - - 45,111 110,260 20,446 29,425 1,206,532 - - - - 1,366,663 1,211,133 - - - 16,034 - - - - 16,034 41,924 - 300,000 - - - - 300,000 195,510 18,058 2,447 - - - 21,310 32,135 202,274 - - 10,365 33,958 - 327 - 46,236 325,512 318,844 (37,085) - - - (25,000) - - - - (62,085) (56,923) 2,185,893 900,000 - 158,741 3,244,634 2,235,115 172,749 - - - - 172,749 173,826 31,588 - - - - 11,555 - 43,143 32,090 - - 1,294,823 - - 1.294.823 1,729,586 $307,433 $21 $2178 $3,661,691 $3,152.196 $51 56,328 5225,496 58,561,719 $8,250,030 S 6,893 5 - $17,550 5 764,181 $ 605 $ 9,286 $ 262 - - - 833,433 - - - - - - 870,568 - - 16,269 - - 118,351 - - - - - - 1,594,823 - 11,453 21,000 8,100 28,391 - 70,000 5,830 - 406,538 - - 40,445 21,000 25,650 3,021,462 1,595.428 79,286 262 $ 320 S 10,971 S 812,811 $ 400,779 - - 833,433 752,624 - 870,568 732,248 - 135,086 109,271 - 300 300 - 110,426 1,705,249 2,086,635 2,300 86,342 227,586 257,670 - 412,368 206,538 2,620 207,739 4,997,401 4,546,065 - - - 84,642 84,642 78,965 - - - 158,145 - - - 158,145 50,345 ' - - - 200,000 - - - 77,016 77,016 154,032 31,588 - - - 11,555 - 43,143 32,090 - 261,669 - - - - 261,669 341,800 235,400 (20 3,828 58,757 1,556,768 426,573 6,066 (2,526 17,757 2,939,703 2,846,733 266,988 (20 3,828 640,229 1,556,768 438,128 6,066 (2,526 17,757 3,564,318 3,703,965 $307,433 $20,980 $29,478 $3,661,691 $3,152,196 $51 56,328 S 94 $225,496 $8,561,719 58,250,030 45 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE (DEFICIT) YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 46 Fire and Road Service Districts Fire Road Women's Monashka District Women's Area 1 Bay_ Bay One Bay Bay View Revenues: Property taxes $137,439 534,669 $21,988 $142,072 $ 69,435 $3,872 State sources 4,870 851 3,600 13,302 23,069 1,295 Federal sources - - - - - - Land sale proceeds - - - - - - Licenses, permits, fees and other local revenues 6,010 6,300 - 1,732 21,732 - Investments and property 20,972 - - - Total revenues 169,291 41,820 25,588 157,106 114,236 5,167 Expenditures: Planning and community development - - - - - - Health and sanitation - - - Education support - - - - General administration 154,913 39,012 - - - Oi t spi l l cleanup - - - - - - Capital improvements: Services district maintenance - - 18,402 135,656 52,955 4,606 General - - - - - - Total expenditures 154,913 39,012 18,042 135,656 52,955 4,606 Excess (deficiency) of revenues over expenditures 14,378 2,808 7,186 21,450 61,281 561 Operating transfers in 1,457 10,000 - - - - Operating transfers out - - 1( 0,000 Net operating transfers 1,457 10,000 - 1( 0,000 - Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out 15,835 12,808 7,186 21,450 51,281 561 Fund balance at beginning of year 436,084 16,981 3,907 24,057 45,114 1,836 Adjustments to reserve for fuel inventory - - - - - - Fund balance (deficit) at end of year $451,919 $29,789 $11,093 $ 45,507 $ 96,395 $2,397 46 EXHIBIT B-2 Federal and State Grant Proarams Community Totals Mental Coastal Building Woodland and Health Manage- and Acres Regional OR Spill Center ment Day Care Education Land Sales Grounds Lighting Affairs Cleanup 1992 1991 ' E - E S f - S S - S 9,231 S S S 418,706 S 339,734 984,831 32,950 206,017 15,353,344 65,496 16,689,625 18,686,558 1,697,732 1,697,732 2,017,334 - - - - 431,843 - - - - 431,843 581,519 522,380 _ _ 175,761 34,578 - _ 2,470 _ 770,963 866,789 60.042 66.755 279.235 427,004 491,810 1,567,253 32.950 206.017 17,226,837 533,176 279.235 9,231 2,470 65,496 20.435,873 22,983.744 i 32,970 - - - - - - - 32,970 58,100 ' 1,743,263 - 219,368 - _ - _ _ - 1,962,631 1,856,893 18,353,975 - 18,353,975 17,481,451 11,634 532,163 4,336 4,996 747,054 857,881 - - - - 66,544 66,544 409,989 - _ _ _ 211,619 140,548 37.000 37,000 1.743,263 32.970 219.368 18,353.975 48.634 532.163 4,336 4,996 66.544 21,411.793 20,804,862 (176,010 (20 1C 3.351 (1,127.138 484,542 (252,928 4.895 (2,526 (1.048 (975,920 2.178.882 200,000 - - 3,000,000 - 300,000 - - - 3,511,457 2,790,685 ' (9.132 - (2,179.346 (481.670 - - - (2.680,148 (5.835.638 190,868 820.654 (481,670 300,000 831.309 (3,044,953 14,858 (20) (13,351) (306,484) 2,872 47,072 4,895 (2,526) (1,048) (144,611) (866,071) ' 252,130 - 17,179 941,749 1,553,896 391,056 1,171 - 18,805 3,703,965 4,605,628 4,964 - - 4.964 (35.592 S 266.988 S (20 E 3.828 Si S 1,5 S 438,128 S 6,066 E (2,526 17,757 S 3,564,318 $ 3 703,965 1 47 EXHIBIT B -3 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - FIRE AREA 1 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Revenues: Property taxes Payment in lieu of taxes State sources - shared revenue Licenses, permits, fees and other local revenues Investments and property Total revenues Expenditures - general administration: Fire chief Volunteers Fringe benefits Professional services Contributions Support costs Capital outlay Depreciation Total expenditures Excess (deficiency) of revenues over expenditures Operating transfers in Net operating transfers Excess (deficiency) of revenues and operating transfers in over expenditures Fund balance at beginning of year Fund balance at end of year Budget Actual Variance - Favorable (Unfavorable) S 140,000 5,000 6,000 28,000 62,680 8,000 20,060 4,000 200,000 59,450 22,000 12,400 388,590 $ 137,439 1,838 3,032 6,010 20,972 169,291 S (2,561) 1,838 (1,968) 10 (7,028) (9,709) 1991 Actual $ 127,769 2,424 5,074 6,005 32,024 173,296 64,335 (1,655) 59,874 5,055 2,945 4,400 22,933 (2,873) 17,766 - 4,000 - - 200,000 - 54,062 5,388 40,624 8,528 13,472 19,081 - 12,400 - 154,913 233,677 141,745 (209,590) 14,378 223,968 - 1,457 1,457 - 1,457 1,457 S (209,590) 15,835 436,084 S 451,919 $ 225,425 31,551 10,685 10,685 42,236 S 436,084 48 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - FIRE WOMEN'S BAY STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 EXHIBIT B -4 49 Variance - Favorable 1991 Budget Actual (Unfavorable) Actual Revenues: Property taxes S 29,000 S 34,669 $ 5,669 S 33,377 State sources - shared revenue 600 851 251 2,446 Licenses, permits, fees and other local revenues 7,200 6,300 (900) 8,400 Total revenues 36,800 41,820 5,020 44,223 Expenditures - general administration: Personnel services 800 195 605 61 Fringe benefits 4,000 3,955 45 3,555 Support costs 27,600 27,482 118 34,909 Capital outlay 14,400 7,380 7,020 2,121 Total expenditures 46,800 39,012 7,788 40,646 Excess of revenues over expenditures (10,000) 2,808 12,808 3,577 Operating transfers in 10,000 10,000 - 10,000 Net operating transfers 10,000 10,000 - 10,000 Excess of revenues and operating transfers in over expenditures transfers out S - 12,808 S 12,808 13,577 Fund balance at beginning of year 16,981 3,404 Fund balance at end of year $ 29,789 $ 16,981 EXHIBIT B -4 49 EXHIBIT B-5 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS -ROAD MONASHKA BAY STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Variance - Favorable 1991 Budget Actual (Unfavorable) Actual Revenues: Property taxes S 18,700 S 21,988 $ 3,288 S 21,546 State sources: Shared revenue 3,700 3,267 (433) 3,473 Disaster relief 1,500 333 (1,167) - Total revenues 23,900 25,588 1,688 25,019 Expenditures - capital improvements - service district maintenance: Personnel services - 285 (285) 239 Snow removal 12,400 9,268 3,132 10,474 Road grading 10,000 8,389 1,611 7,609 Repairs and maintenance 1,500 333 1,167 - Support goods & services - 127 (127) 86 Total expenditures 23,900 18,402 5,498 18,408 Excess of revenues over expenditures $ - 7,186 $ 7,186 6,611 Fund balance at beginning of year 3,907 (2,704) Fund balance at end of year $ 11,093 S 3,907 50 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD DISTRICT 1 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 EXHIBIT B -6 51 Variance - FavorabLe 1991 Budget Actual (Unfavorable) Actual Revenues: Property taxes S 128,600 $ 142,072 S 13,472 S 79,138 Payment in Lieu of taxes - 2,573 2,573 1,939 State sources - shared revenue 10,000 10,729 729 10,122 Other - 1,732 1,732 - TotaL revenues 138,600 157,106 18,506 91,199 Expenditures - capital improvements - service district maintenance: PersonneL services 4,000 4,114 (114) 2,900 Repairs and maintenance 9,500 10,597 (1,097) - Snow removal 60,000 71,807 (11,807) 38,917 Road grading 64,000 48,672 15,328 15,899 Support goods & services 1,100 466 634 8,133 Total expenditures 138,600 135,656 2,944 65,849 Excess of revenues over expenditures $ - 21,450 $ 21,450 25,350 Fund balance (deficit) at beginning of year 24,057 (1,293) Fund balance at end of year S 45,507 S 24,057 EXHIBIT B -6 51 EXHIBIT B -7 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD WOMEN'S BAY STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Variance - Favorable 1991 Budget Actual (Unfavorable) Actual Revenues: Property taxes S 65,150 $ 69,435 S 4,285 S 66,755 State sources: Shared revenue 16,000 15,176 (824) 15,760 Disaster relief 7,740 7,893 153 - Licenses, permits, fees 20,000 20,000 - 20,000 Other - 1,732 1,732 - TotaL revenues 108,890 114,236 5,346 102,515 Expenditures - capital improvements - service district maintenance: Personnel services 500 491 9 136 Snow removal 35,000 29,360 5,640 34,099 Road grading 30,000 13,734 16,266 19,506 Repairs and maintenance 22,740 9,350 13,390 - Support goods & services 10,650 20 10,630 64 Total expenditures 98,890 52,955 45,935 53,805 Excess of revenues over expenditures 10,000 61,281 51,281 48,710 Operating transfers out (10,000) (10,000) - (10,000) Net operating transfers (10,000) (10,000) - (10,000) Excess of revenues over expenditures and operating transfers out S 51,281 $ 51,281 38,710 Fund balance at beginning of year 45,114 6,404 Fund balance at end of year S 96,395 S 45,114 52 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE DISTRICTS - ROAD BAY VIEW STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 Revenues: Property taxes State sources - shared revenue Total revenues Expenditures - capital improvements - service district maintenance: Personnel services Snow removal Road grading Repairs and maintenance Support goods and services Total expenditures Excess of revenues over expenditures Fund balance (deficit) at beginning of year Fund balance at end of year EXHIBIT B-8 2,000 2,000 4,000 S - 306 3,992 143 146 19 4,606 561 1,836 52,397 (306) (1,992) 1,857 (146) (19 (606 $ 561 53 1991 Actual $3,826 1,338 5,164 130 2,011 345 2,486 2,678 (842 $1 836 1992 Variance - Favorable Budget Actual (Unfavorable) $3,100 $3,872 S 772 900 1,295 395 4,000 5,167 1,167 2,000 2,000 4,000 S - 306 3,992 143 146 19 4,606 561 1,836 52,397 (306) (1,992) 1,857 (146) (19 (606 $ 561 53 1991 Actual $3,826 1,338 5,164 130 2,011 345 2,486 2,678 (842 $1 836 EXHIBIT B -9 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS STATE GRANT PROGRAMS - MENTAL HEALTH CENTER STATEMENT OF REVENUES. EXPENDITURES. TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 54 Variance - Favorable 1991 Budget Actual (Unfavorable) Actual Revenues: State sources: Alaska Youth Initiative E 73,539 $ 57,157 $(16,382) $ 93,317 Developmental Disability Program 325,191 303,998 (21,193) 283,725 Health, Social and Community Services Program 611,614 611,614 - 516,862 Division of Family and Youth Services 9,987 5,546 (4,441) 7,639 Other 1,546 6,516 4,970 2,324 Licenses, permits, fees and other local revenues: Organization user fees 288,600 257,929 (30,671) 251,329 Individual user fees 280,530 264,451 (16,079) 227,865 Investments and property: Rental fees 60,000 60,000 - 60,000 Interest 3,000 42 (2,958) 5,904 Total revenues 1,654,007 1,567,253 (86,754) 1,448,965 Expenditures - health and sanitation - mental health programs: Personnel services 1,496,386 1,454,436 41,950 1,251,367 Travel 28,641 12,711 15,930 27,940 Facility 127,400 130,113 (2,713) 131,164 Supplies 67,150 49,918 17,232 68,820 Equipment 29,500 15,711 13,789 24,742 Capital outlay - - - 18,066 Other 104,930 80,374 24,556 140,805 Total expenditures 1,854,007 1,743,263 110,744 1,662,904 Excess of revenues over expenditures (200,000) (176,010) 23,990 (213,939) Operating transfers in 200,000 200,000 - 210,000 operating transfers out - (9,132) (9,132) (16,561) Net operating transfers 200,000 190,868 (9,132) 193,439 Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out $ - 14,858 $ 14,858 (20,500) Fund balance at beginning of year 252,130 272,630 Fund balance at end of year $ 266,988 S 252,130 54 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS STATE GRANT PROGRAMS - MENTAL HEALTH CENTER SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Expenditures - Alaska Youth Initiative: Personnel Travel Facility Supplies Equipment Other EXHIBIT B -10 1991 Actual S 73,178 310 7,053 6,062 965 5.749 93,317 Expenditures - Developmental Disability Program: Variance - Favorable Budget Actual (Unfavorable) S 51,589 S 43,937 S 7,652 3,600 5,704 (2,104) 5,350 2,298 3,052 500 324 176 12,500 4.891 7,609 73,539 57.154 16,385 EXHIBIT B -10 1991 Actual S 73,178 310 7,053 6,062 965 5.749 93,317 Expenditures - Developmental Disability Program: Personnel 326,540 318,710 7,830 227,523 ' Travel 7,141 749 6,392 5,035 Facility 20,200 22,178 (1,978) 17,209 Supplies 26,700 25,253 1,447 26,128 Equipment 7,500 4,392 3,108 8,518 Capital outlay - - - 14,996 ' Other 8,000 6,423 1,577 45,321 396,081 377,705 18,376 344,730 Expenditures - Health, Social and Community Services Program: ' Personnel 1,116,970 1,089,955 27,015 949,202 Travel 21,500 11,962 9,538 22,595 Facility 100,500 99,799 701 104,479 Supplies 33,500 22,283 11,217 35,756 ' Equipment 21,500 10,672 10,828 15,232 Capital outlay 3 Other 80,430 68,186 12.244 86,8 1,374,400 1,302,85 7 71,543 1,217,219 ' Expenditures - Division of family and Youth Services: Personnel 1,287 1,834 (547) 1,464 Facility 3,100 2,431 669 2,423 Supplies 1,600 84 1,516 875 Equipment 324 (324) 27 Other 4,000 874 3.126 2.850 9,987 5,547 4,440 7,639 Total Expenditures S 1,854,007 $1,743,263 $110,744 $1,662,905 55 EXHIBIT B -11 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FEDERAL AND STATE GRANT PROGRAMS - COASTAL MANAGEMENT STATEMENT OF REVENUES, EXPENDITURES. TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Revenues: State sources Expenditures - planning and community development: Planning and zoning Deficiency of revenues over expenditures Fund balance at beginning of year Fund balance at end of year Budget 32,950 56 .a� ' '1 - Favorable 1991 Actual (Unfavorable) Actual $32,950 $ - $58,100 32,970 (20) 58,100 (20) $(20) - $ (20) $ - 57 EXHIBIT B -12 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FEDERAL AND STATE GRANT PROGRAMS - DAY CARE STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Variance - Favorable 1991 Budget Actual (Unfavorable) Actual Revenues: State sources $264,757 $206,017 S(58,740) $211,168 Expenditures health and sanitation - Day care payments 264,757 219,368 45,389 193,989 Excess (deficiency) of revenues over expenditures $ - (13,351) $(13,351) 17,179 Fund balance at beginning of year 17,179 - Fund balance at end of year $ 3,828 $ 17,179 57 EXHIBIT B-13 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS EDUCATION STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 Total revenues Expenditures: Education support: Regular instruction Vocational education instruction Correspondence study instruction Special education instruction Gifted and talented instruction Bilingual /bicultural instruction Support services - pupils School administration District administration Operation and maintenance Food services Community services Pupil activities Pupil transportation 17,784,959 17,226,837 1992 19,235,168 8,467,537 7,937,607 529,930 7,469,335 Variance - 843,143 58,374 782,154 109,050 Favorable 1991 112,503 Budget Actual (Unfavorable) Actual Revenues: 147,689 (923) 124,084 259,651 State sources $15,300,073 $15,353,344 S 53,271 $17,044,417 Federal through State sources 2,019,664 1,499,447 (520,217) 1,517,502 Federal direct sources 276,492 198,285 (78,207) 499,832 Licenses, permits, fees 2,601,211 40,312 2,565,720 321,730 and other local revenues: (34,149) 321,132 28,712 14,081 Food sales 147,230 133,522 (13,708) 131,519 Pupil activities 7,000 7,566 566 7,335 Other local revenues 34,500 34,673 173 34,563 Total revenues Expenditures: Education support: Regular instruction Vocational education instruction Correspondence study instruction Special education instruction Gifted and talented instruction Bilingual /bicultural instruction Support services - pupils School administration District administration Operation and maintenance Food services Community services Pupil activities Pupil transportation 17,784,959 17,226,837 (558,122) 19,235,168 8,467,537 7,937,607 529,930 7,469,335 901,517 843,143 58,374 782,154 109,050 114,951 (5,901) 112,503 1,993,036 1,729,074 263,962 1,758,788 146,766 147,689 (923) 124,084 259,651 242,053 17,598 225,106 953,510 1,136,403 (182,893) 924,449 1,210,037 1,229,246 (19,209) 1,185,472 965,650 1,003,293 (37,643) 1,141,192 2,641,523 2,601,211 40,312 2,565,720 321,730 355,879 (34,149) 321,132 28,712 14,081 14,631 16,057 444,996 462,172 (17,176) 399,397 548,450 537,173 11,277 456,062 Total expenditures 18,992,165 18,353,975 Excess (deficiency) of revenues over expenditures (1,207,206) (1,127,138) Operating transfers in 3,000,000 3,000,000 Operating transfers out (2,128,620) (2,179,346) Net operating transfers Deficiency of revenues and operating transfers in over expenditures and operating transfers out Fund balance at beginning of year Adjustment to reserve for fuel inventory Fund balance at end of year 638,190 17,481,451 80,068 1,753,717 - 2,100,000 (50,726) (4,507,347) 871,380 820,654 (50,726) (2,407,347) S (335,826) (306,484) S 29,342 (653,630) 941,749 1,630,971 4,964 (35,592) $ 640,229 $ 941,749 58 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS LAND SALES STATEMENT OF REVENUES, EXPENDITURES. TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 EXHIBIT B -14 Variance - Favorable 1991 Budget Actual (Unfavorable) Actual Revenues: Land sale proceeds S 370,000 S 431,843 $ 61,843 $ 581,519 Licenses, permits, fees and other local revenues: Penalty and interest - 370 370 - Gravel sales 40,000 33,958 (6,042) 131,814 Other 173,490 250 (173,240) - 583,490 466,421 (117,069) 713,333 Investment income 100,000 66,755 (33,245) 140,834 Total revenues 683,490 533,176 (150,314) 854,167 Expenditures - General administration: Personnel services - 2,432 (2,432) - Contracted services 157,320 515 156,805 10,979 Support goods and services 44,500 8,687 35,813 27,950 Capital improvements: General - 37,000 (37,000) 380 Total expenditures 201,820 48,634 153,186 39,309 Excess of revenues over expenditures 481,670 484,542 2,872 814,858 Operating transfers out (481,670) (481,670) - (1,301,730) Net operating transfers (481,670) (481,670) - (1,301,730) Excess (deficiency) of revenues and operating transfers in over expenditures and operating transfers out $ - 2,872 $ 2,872 (486,872) Fund balance at beginning of year 1,553,896 2,040,768 Fund balance at end of year $1,556,768 S 1,553,896 59 EXHIBIT B -15 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS BUILDINGS AND GROUNDS STATEMENT OF REVENUES, EXPENDITURES. TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 AMC Variance - Favorable 1991 Budget Actual (Unfavorable) Actual Revenues: Investments and property: Rental $ 273,620 S 272,663 S (957) $ 274,025 Interest income 15,000 6,572 (8,428) 24,058 Miscellaneous income 106,455 - (106,455) 560 Total revenues 395,075 279,235 (115,840) 298,643 Expenditures - general administration: School buildings 400,000 251,934 148,066 340,973 Borough building 332,575 255,634 76,941 245,312 Apartments 32,500 18,253 14,247 9,429 Refuse collection and disposal 16,000 - 16,000 19,858 Parks operation and maintenance 14,000 6,342 7,658 14,457 Total expenditures 795,075 532,163 262,912 630,029 Deficiency of revenues over expenditures (400,000) (252,928) 147,072 (331,386) Operating transfers in 400,000 300,000 (100,000) 460,000 Net operating transfers 400,000 300,000 (100,000) 460,000 Excess of revenues and operating transfers in over expenditures $ - 47,072 $ 47,072 128,614 Fund balance at beginning of year 391,056 262,442 Fund balance at end of year S 438,128 S 391,056 AMC Revenues: Property taxes Total revenues Expenditures - general administration: Electricity Capital outlay Total expenditures Excess of revenues over expenditures Fund balance at beginning of year Fund balance at end of year KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS WOODLAND ACRES LIGHTING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Budget $7,380 7,380 3,000 4,380 7,380 S - 61 EXHIBIT B -16 Favorable 1991 Actual (Unfavorable) Actual $9,231 $ 1,851 57,323 9,231 1,851 7,323 4,336 (1,336) 1,772 - 4,380 4,380 4,336 3,044 6,152 4,895 $ 4,895 1,171 1,171 - $6,066 $1,171 EXHIBIT B -16 EXHIBIT B -17 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMMUNITY AND REGIONAL AFFAIRS STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 1992 Revenues: Miscellaneous Total revenues Expenditures - general administration: Support goods and services Total expenditures Deficiency of revenues over expenditures Fund balance at beginning of year Fund balance at end of year $ (2,526) 62 Variance - Favorable Budget Actual (Unfavorable) f 7,000 $ 2,470 $ (4,530) 7,000 2,470 (4,530) 7,000 4,996 2,004 7,000 4,996 2,004 S - (2,526) S (2,526) $ (2,526) 62 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS OIL SPILL CLEANUP STATEMENT OF REVENUES. EXPENDITURES. TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 Revenues: Exxon reimbursements State sources - Department of Environmental Conservation grants Department of Community and Regional Affairs grants Other sources Total revenues Expenditures - oil spill clean up: Personal services Fringe benefits Contracted services Support goods and services Capital outlay Legal fees Disbursements to villages Total expenditures Excess (deficiency) of revenues over expenditures Fund balance at beginning of year Fund balance at end of year Project Project to Date to Date Budget 1991 $2,000,000 $1,200,151 2,560,000 2,271,784 13,600 13,600 - 2,670 4,573,600 3,488,205 555,170 532,537 9,330 69,025 2,262,600 1,551,258 - 30,373 10,000 169,806 1,936,500 1,116,401 4,773,600 3,469,400 $ (200,000 18,805 S 18,805 63 EXHIBIT B -18 Project Variance - 1992 to Date Favorable Actual 1992 (Unfavorable) $ - $1,200,151 S (799,849) 65,496 2,337,280 (222,720) - 13,600 - 2,670 2,670 65,496 3,553,701 (1,019,899 12,985 545,522 9,648 4,841 73,866 (64,536) 19,361 19,361 (19,361) 6,063 1,557,321 705,279 - 30,373 (30,373) - 169,806 (159,806) 23,294 1,139,695 796,805 66,544 3,535,944 1,237,656 (1,048) 17,757 S$ 2s 18,805 - S17,757 $ 17,757 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. 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. 11 65 EXHIBIT C -1 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS COMBINING BALANCE SHEET JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 66 Totals School Bonds Other 1992 1991 ASSETS Equity in central treasury $ 378 $ 91,327 S 91,705 $ 508,876 Temporary cash investments 6,043,724 - 6,043,724 6,508,945 Cash with fiscal agent - - - 110,285 Receivable from State of Alaska 622,388 - 622,388 239,782 Due from general fund - 100,000 100,000 - Accrued interest receivable 59,990 - 59,990 114,751 $6,726,480 $191,327 $6,917,807 $7,482,639 LIABILITIES AND FUND BALANCES Accounts payable $ - $ - $ - $ 7,031 Due to other funds 170,000 - 170,000 - Total Liabilities 170,000 - 170,000 7,031 Fund Balances: Unreserved - Designated for subsequent year expenditures 6,556,480 191,327 6,747,807 7,475,608 $6,726,480 $191,327 $6,917,807 $7,482,639 66 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES TRANSFERS AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 EXHIBIT C -2 67 Totals School Bonds Other 1992 1991 Revenues: Investments and property - Interest income S 347,882 E S 347,882 S 472,101 Total revenues 347,882 347,882 472,101 Expenditures: Debt service: Principal 1,685,833 - 1,685,833 1,595,833 Interest 843,656 - 843,656 947,381 Fiscal agent fees 24,827 - 24,827 71,974 Refunding bond issuance costs 136,273 - 136,273 - Other 4,162 4,162 46 Total expenditures 2,694,751 - 2,694,751 2,615,234 Deficiency of revenues over expenditures (2,346,869) (2,346,869) (2,143,133) Other financing sources: Operating transfers in: General fund - 15,774 15,774 326 Special revenue funds: Mental Health Center - 9,132 9,132 16,562 Education 2,179,346 - 2,179,346 4,507,348 Fire Service District Area 1 - - - - Proceeds of refunding bonds 4,875,000 - 4,875,000 - Total other financing sources 7,054,346 24,906 7,079,252 4,524,236 Other financing uses: Operating transfers out: Special revenue funds: Fire Service District Area 1 - 1,457 1,457 685 Capital projects funds 720,000 - 720,000 1,740,230 Payment to refunded bond escrow agent 4,738,727 - 4,738,727 - Total other financing uses 5,458,727 1,457 5,460,184 1,740,915 Net other financing sources 1,595,619 23,449 1,619,068 2,783,321 Excess (deficiency) of revenues and operating transfers in over expend- itures and operating transfers out (751,250) 23,449 (727,801) 640,188 Fund balances at beginning of year 7,307,730 167,878 7,475,608 6,835,420 Fund balance at end of year S 6,556,480 S 191,327 S 6,747,807 S 7,475,608 EXHIBIT C -2 67 EXHIBIT C -3 KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS SCHOOL BONDS STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Variance - Favorable 1991 Budget Actual (Unfavorable) Actual Revenues: Investments and property - Interest income $ 350,000 $ 347,882 $ (2,118) S 472,101 Total revenues 350,000 347,882 (2,118) 472,101 Expenditures: Debt service: Principal 1,650,840 1,685,833 (34,993) 1,595,833 Interest 970,000 843,656 126,344 947,381 Fiscal agent fees 100,000 24,827 75,173 71,974 Refunding bond issuance costs - 136,273 (136,273) - Other 279,160 4,162 274,998 46 Total expenditures 3,000,000 2,694,751 305,249 2,615,234 Deficiency of revenues over expenditures (2,650,000) (2,346,869) 303,131 (2,143,133) Other financing sources (uses): Operating transfers in 2,140,000 2,179,346 39,346 4,507,348 Proceeds of refunding bonds - 4,875,000 4,875,000 - Payment to refunded bond escrow agent - (4,738,727) (4,738,727) Operating transfers out (720,000) (720,000) - (1,740,230) Net other financing sources 1,420,000 1,595,619 175,619 2,767,118 Excess (deficiency) of revenues and operating transfers in over expend- itures and operating transfers out $(1,230,000) (751,250) S 478,750 623,985 Fund balance at beginning of year 7,307,730 6,683,745 Fund balance at end of year S 6,556,480 S 7,307,730 68 Operating transfers in: General fund Special revenue funds: Mental Health Center Fire Service District Area 1 Total operating transfers in Operating transfers out: Special revenue funds: Fire Service District Area 1 Total operating transfers out Net operating transfers Fund balance at beginning of year Fund balance at end of year KODIAK ISLAND BOROUGH DEBT SERVICE FUNDS OTHER STATEMENT OF REVENUES, EXPENDITURES. TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Variance - Favorable Budget Actual (Unfavorable) S 8,000 E 15,774 S 7,774 6,000 9,132 3,132 1,000 - (1,000) 15,000 24,906 9,906 (1,457) $15,000 I-VI (1,457) 23,449 167,878 $191,327 (1,457) (1,457) S 8,449 EXHIBIT C-4 1991 Actual S 326 16,562 16,888 (685) (685) 16,203 151,675 $167,878 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. 71 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 ASSETS Equity in central treasury Temporary investments Receivables: State of Alaska Accrued interest Accounts receivable Due from other funds LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Retainages payable Due to general fund Deferred revenue Total liabilities Fund Balances: Reserved for encumbrances Unreserved - Designated for subsequent year expenditures Undesignated Total fund balance 72 Various School Borough Bond Projects Improvements S 38,562 S 47,112 2,521,420 361,148 26,375 999 204,827 - $2,791,184 $409,259 $ 33,311 $ - 24,656 - 237,600 - 295,567 934,874 - 1,560,743 - - 409,259 2,495,617 409,259 $2,791,184 $409,259 EXHIBIT D -1 73 Totals School Equipment State School and Capital Major Furnishings Grants Maintenance 1992 1991 $ - S 179,453 $ 1,336 S 266,463 $ 412,803 - 200,000 1,568,820 4,651,388 4,026,877 - 126,182 - 126,182 12,889 - 451 4,386 32,211 47,368 - - - 204,827 - 28,391 50,000 - 78,391 152,670 S 28,391 S 556,086 S 1,574,542 S 5,359,462 S 4,652,607 S - S 1,484 $ - S 34,795 $ 33,447 - 30,937 - 55,593 24,170 - - 20,000 257,600 - - 483,368 - 483,368 542,572 - 515,789 20,000 831,356 600,189 - 40,297 - 975,171 709,443 - - - 1,560,743 1,426,538 28,391 - 1,554,542 1,992,192 1,916,437 28,391 40,297 1,554,542 4,528,106 4,052,418 S 28,391 S 556,086 S 1,574,542 S 5,359,462 S 4,652,607 73 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES (DEFICITS) YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 74 Various School Borough Bond Projects Improvements Revenues: State sources $ - f - Licenses, permits, fees and other local revenues 505 - Investments and property 89,562 18,854 Insurance proceeds - Asbestos settlement 47,196 - Roof claim settlement 631,095 - Other - 1,000 Total revenues 768,358 19,854 Expenditures: Capital improvements: Schools 1,279,702 23,125 General 119,370 - Total expenditures 1,399,072 23,125 Excess (deficiency) of revenues over (under) expenditures (630,714) (3,271) Operating transfers in 1,042,000 - Operating transfers out ' Net operating transfers 1,042,000 - Excess (deficiency) of revenues and operating transfers in over expenditures operating transfers out 411,286 (3,271) Fund balances at beginning of year 2,084,331 412,530 Fund balances at end of year $ 2,495,617 $ 409,259 74 EXHIBIT D-2 75 Totals School Equipment State School and Capital Major Furnishings Grants Maintenance 1992 1991 S - S 799,971 S - S 799,971 S 266,774 24,000 - - 24,505 25,072 - 26,418 82,475 217,309 236,608 - - - - 10,612 - - - 47,196 216,710 - - - 631,095 - - - - 1,000 - 24,000 826,389 82,475 1,721,076 755,776 6,118 - - 1,308,945 1,038,556 - 1,229,767 - 1,349,137 1,167,188 6,118 1,229,767 - 2,658,082 2,205,744 17,882 (403,378) 82,475 (937,006) (1,449,968) - 470,694 - 1,512,694 3,608,730 - - (100,000) (100,000) (740,000) - 470,694 (100,000) 1,412,694 2,868,730 17,882 67,316 (17,525) 475,688 1,418,762 10,509 (27,019) 1,572,067 4,052,418 2,633,656 $28,391 S 40,297 51,554,542 $4,528,106 S 4,052,418 75 KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS YEAR ENDED JUNE 30, 1992 76 AcoroDriations Total Project Status Prior 1992 Aourooriations Capital Projects - Education 410 -404 Work of Art - Auditorium Open S 33,090 $ - S 33,090 410-405 Roof, East Elementary Complete 400,000 - 400,000 410 -415 Asbestos Removal Program Open 75,000 - 75,000 410 -417 School Pedestrian Project Complete 92,000 - 92,000 410 -421 School Site Acquisition open 400,000 (138,000) 262,000 410 -431 East Elementary Siding /Repair Open 50,000 - 50,000 410 -432 East Elementary Lighting Complete 30,000 - 30,000 410-433 East Elementary Storm Drain Open 20,000 - 20,000 410 -434 Junior High Steps Repair Complete 12,000 (7,293) 4,707 410 -435 Main Sidewalk Repair Complete 15,000 (11,433) 3,567 410 -436 Ouzinkie Roof Repair Open 65,000 30,000 95,000 410-437 Port Lions Shop Porch Dormers Open 30,000 - 30,000 410 -438 Port Lions Paint Open 25,000 - 25,000 410 -441 Old Harbor School Repair Open 525,000 - 525,000 410 -442 High School Alteration I Complete 475,000 (41,000) 434,000 410 -446 High School Roof Maintenance Open - 30,000 30,000 410 -447 Main Elementary Roof Open - 1,000,000 1,000,000 410 -448 Chiniak School Water System Open - 20,000 20,000 410 -450 Ouzinkie School Paint Open - 30,000 30,000 410 -451 High School Alteration 11 Open - 820,000 820,000 410 -454 Larsen Bay School AHU Open - 75,000 75,000 410 -457 High School Alteration III Open - 110,324 110,324 420-501 Peterson Elementary Open 509,860 - 509,860 420 -502 Old Harbor School Fencing Complete 20,000 - 20,000 420 -503 Landscaping - Port Lions Open 15,000 15,000 Total Education 2.791.950 1.917.598 4.709.548 Capital Projects - Health 410 -402 Hospital Construction Open 123,810 - 123,810 410 -428 Hospital Oil Spill Open 100,000 50,000 150,000 410-443 Hospital Hot Water Tanks Open - 110,000 110,000 410-444 Hospital Laundry Complete - 10,040 10,040 430 -605 Hospital Design 8 Development Open 1,000,000 - 1,000,000 430-609 Hospital Equipment Open - 50,000 50,000 Total Health 1.223,810 220,040 1,443,850 Capital Projects - Roads 410 -412 Rezanof Overlay Cancelled 295,000 (295,000) - 410 -418 Chiniak Subdivision Open 389,770 - 389,770 430 -601 Lakeside Improvement Open 783,590 - 783,590 430 -602 Sharatin Road Open 791,320 50.000 841,320 Total Roads 2.259.680 (245,000 2.014,680 Capital Projects - Other 410 -406 Smokey's Clean Up Open 42,000 - 42,000 410 -419 King Crab - RFP Open 56,000 22,000 78,000 410 -423 Drainage Plan Air Photos Open 31,050 - 31,050 410 -425 Dumpster Pads Open 44,500 - 44,500 410 -426 Parks Expansion Complete 40,000 - 40,000 410 -427 New Computer Acquisition Open 540,500 - 540,500 410 -429 New Parks Open 40,000 - 40,000 410 -430 Smokey's Fence Open 50,000 20,000 70,000 410 -439 Borough Offices Paint Open 15,000 - 15,000 410-440 Borough Buildings Paint Open 60,000 - 60,000 410-449 Underground Tanks Complete - 22,362 22,362 410 -452 Cold Weather Training Review Open - 19,068 19,068 410 -453 KIB Apts. Fire Code Upgrade Open - 70,000 70,000 410 -456 Selief Lane Drainage Open - 35,000 35,000 430-607 Salonie Creek Open - 520,000 520,000 430 -613 Selief Lane Open - 75,000 75,000 430-615 LEPC Grant Open 9,300 - 9,300 430 -616 Waste Characterization Open - 40,000 40,000 430 -618 Emergency Medical Equipment Open - 5,000 5,000 430 -619 CAP Hanger I Open - 60,000 60,000 550 -753 Cold Weather Training Construction Open - 925,000 925,000 430 -620 Rural Development Assistance Open - 30.000 30.000 Total Other 928.350 1,843.430 2.771,780 Total Capital Projects $7,203,790 $3,736,068 510 76 EXHIBIT D-3 77 Expenditures Total Unexpended Current Unencumbered Prior 1992 Expenditures Balance Encumbrances Balance $ 4,500 S 4,500 $ 9,000 $ 24,090 $ - S 24,090 386,252 2,920 389,172 10,828 - 10,828 42,389 21,082 63,471 11,529 - 11,529 91,566 434 92,000 220,681 71,803 292,484 (30,484) - (30,484) - 931 931 49,069 28,698 20,371 1,200 22,215 23,415 6,585 - 6,585 - - - 20,000 - 20,000 - 4,707 4,707 - - - 3,567 3,567 1,102 4,806 5,908 89,092 - 89,092 702 5,468 6,170 23,830 - 23,830 153 309 462 24,538 - 24,538 51,720 405,530 457,250 67,750 - 67,750 50,577 374,919 425,496 8,504 - 8,504 - 4,969 4,969 25,031 - 25,031 - 264,588 264,588 735,412 340,083 395,329 - - - 20,000 - 20,000 - 705 705 29,295 - 29,295 - 90,674 90,674 729,326 499,895 229,431 - 4,564 4,564 70,436 53,216 17,220 - 11 11 110,313 - 110,313 27,864 3,844 31,708 478,152 - 478,152 719 19,281 20,000 872 872 14,128 14,128 880,297 1.311.827 2.192.124 2.517,424 921.892 1,595,532 - - - 123,810 - 123,810 73,364 11,948 85,312 64,688 - 64,688 - 6,244 6,244 103,756 - 103,756 10,040 10,040 940,565 26,464 967,029 32,971 - 32,971 - 8.657 8,657 41,343 - 41.343 1,013,929 63,353 1.077,282 366,568 366,568 244,132 - 244,132 145,638 - 145,638 518,787 3,663 522,450 261,140 - 261,140 27,791 609.658 637,449 203.871 94,316 109.555 790,710 613,321 1,404,031 610,649 94,316 516.333 28,179 2,814 30,993 11,007 - 11,007 49,786 15,161 64,947 13,053 12,982 71 20,412 - 20,412 10,638 - 10,638 10,118 - 10,118 34,382 - 34,382 29,223 11,256 40,479 (479) - (479) 522,463 17,056 539,519 981 - 981 1,022 14,776 15,798 24,202 - 24,202 - 858 858 69,142 - 69,142 77 444 521 14,479 - 14,479 1,161 1,161 2,322 57,678 - 57,678 - 15,819 15,819 6,543 - 6,543 - 9,192 9,192 9,876 - 9,876 - - - 70,000 - 70,000 - - - 35,000 - 35,000 - 500,200 500,200 19,800 - 19,800 - - - 75,000 - 75,000 2,544 6,530 9,074 226 - 226 - 34,314 34,314 5,686 7,529 (1,843) - - - 5,000 - 5,000 - 40,000 40,000 20,000 - 20,000 - - - 925,000 - 925,000 - 30,000 - 30,000 664,985 669,581 1,334,566 1,437,214 20,511 1,416,703 $353 3�` S 2$ 2 6�0� S 6.008,003 54,9 $1.036.719 $3.895.136 77 ENTERPRISE FUNDS These funds were established to finance and account for the acquisition, operation and ' maintenance of governmental facilities and services which are entirely or predominantly self- supporting by user charges. SANITARY SERVICES FUND This fund accounts for all activity of the Borough owned sanitary landfill and garbage collection utility. WATER ENTERPRISE FUND This fund accounts for all activity of the Borough owned and operated water utility. ' SEWER ENTERPRISE FUND This fund accounts for all activity of the Borough owned and operated sewer utility. ' HOSPITAL ENTERPRISE FUND This fund accounts for all activity of the Kodiak Island Hospital & Care Center. The Hospital is a component unit of the Kodiak Island Borough. The Hospital is operated ' on behalf of the Borough by the Lutheran Health Systems Management Company. 79 KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING BALANCE SHEET JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 80 Totals Sanitary Water Sewer Services Utility Utility Hospital 1992 1991 ASSETS Current Assets: Equity in central treasury S 1,814 S 88,219 S 118,817 S 539,346 S 748,196 $ 214,326 Temporary investments - - - - - 250,000 Other cash and cash equivalents - - - 34,616 34,616 1,099,788 1,814 88,219 118,817 573,962 782,812 1,564,114 Receivables: Customers and patients 19,002 59,518 47,194 3,150,809 3,276,523 2,532,753 Other - - - 59,173 59,173 55,921 19,002 59,518 47,194 3,209,982 3,335,696 2,588,674 Less allowance for doubtful receivables - (6,901) (19,663) (1,081,798) (1,108,362) (732,565) Net receivables 19,002 52,617 27,531 2,128,184 2,227,334 1,856,109 Prepaid expenses - - - 142,464 142,464 28,206 Inventories, at cost - - - 209,878 209,878 190,918 Total current assets 20,816 140,836 146,348 3,054,488 3,362,488 3,639,347 Assets whose use is limited: - - - 658,377 By Borough - - Under malpractice funding arrangement -held by trustee - - - 624,899 624,899 257,990 By donor for specific purpose - - - 10,051 10,051 73,376 Equity in central treasury - 8,595 8,595 - 17,190 33,946 Temporary investments - 252,837 252,837 - 505,674 500,000 Interest receivable - 815 815 - 1,630 16,556 Due from general fund - 100,000 100,000 - 200,000 - Total restricted assets - 362,247 362,247 634,950 1,359,444 1,540,245 Deposit on capital lease - - - - - 67,976 Fixed Assets: Land - - - 40,275 40,275 40,275 Unclassified utility plant in service 2,345,987 5,671,796 9,870,603 - 17,888,386 17,874,572 Hospital building and improvements - - - 4,105,899 4,105,899 4,104,988 Equipment 316,873 - - 2,649,387 2,966,260 2,190,677 2,662,860 5,671,796 9,870,603 6,795,561 25,000,820 24,210,512 Less accumulated depreciation (384,624) (865,094) (1,290,548) (3,293,566) (5,833,832) (4,847,882) 2,278,236 4,806,702 8,580,055 3,501,995 19,166,988 19,362,630 Construction work in progress - 34,667 34,594 - 69,261 32,395 Net fixed assets 2,278,236 4,841,369 8,614,649 3,501,995 19,236,249 19,395,025 Total assets $2,299,052 $5,344,452 $ 9,123,244 $ 7,191,433 $23,958,181 $24,642,593 80 Sanitary Services LIABILITIES AND FUND EQUITIES Liabilities: Current liabilities: KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING BALANCE SHEET JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 Totals EXHIBIT E-1 Water Sewer Utility Utility Hospital 1992 1991 Accounts payable S 95,350 S 23,516 S 25,919 S 230,477 $ 375,262 $ 410,366 Customer deposits 700 23,249 - - 23,949 34,184 Accrued expenses 15,328 - - 392,585 407,913 286,413 Other accrued liabilities - 50,000 50,000 730,464 ' Due to City of Kodiak 12,240 12,24 0 24,480 Due to general fund 135,000 135,000 Current portion of capital ' lease obligation - - - 82,189 82,189 24,922 246,378 59,005 38,159 755,251 1,098,793 1,486,349 ' Capital lease obligation - - - 387,373 387,373 114,232 Total liabilities 246,378 59,005 38,159 1,142,624 1,486,166 1,600,581 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 17,525,686 Federal Government - - 200,000 2,237,104 2,437,104 2,437,104 ' Kodiak Island Borough - - - 1,451,544 1,451,544 1,451,544 2,412,453 5,671,796 9,870,603 3,688,648 21,643,500 21,643,500 Accumulated amortization (378,754) (865,047) (1,290,407) - (2,534,208) (2,127,228) ' Net contributions in aid of construction 2,033,699 4,806,749 8,580,196 3,688,648 19,109,292 19,516,272 Retained earnings: ' Temporarily restricted - 10,051 10,051 - Undesignated 18,975 478,698 504,889 2,350,110 3,352,672 3,525,740 Total retained earnings 18,975 478,698 504,889 2,360,161 3,362,723 3,525,740 Total fund equities 2,052,674 5,285,447 9,085,085 6,048,809 22,472,015 23,042,012 Total liabilities ' and fund equities $2,299,052 85,344,452 $ 9,123,244 $7,191,433 523,958,181 $24,642,593 81 EXHIBIT E-2 Rev enue s: Water sales Sewer service charges Refuse collection Sanitary services fees Patient and resident revenues Installation charges Other Total revenues Operating expenses: Personnel services Waste collection Purchased water and sewer treatment Contracted services Repairs and maintenance Depreciation Installation costs Bad debt Supplies Interest General administrative Lawsuit settlement expense Other Total operating expenses Operating loss Other income (expense): Interest income State revenue sharing Loss on asset disposal Donor restricted gifts Total other income Income (loss) before operating transfers Operating transfers in Operating transfers out Net operating transfers Net income (loss) Amortization of contributions in aid of construction Increase (decrease) in retained earnings Adjustment for change in year end Retained earnings at beginning of year Retained earnings at end of year KODIAK ISLAND BOROUGH ENTERPRISE FUNDS STATEMENT OF REVENUES, EXPENDITURES, ' TRANSFERS AND CHANGES'IN RETAINED EARNINGS YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 Totals Sanitary Water Sewer Services Utility Utility Hospital 1992 1991 ' $ - S 352,480 $ - $ - $ 352,480 $ 208,129 394,028 - 394,028 265,031 1,179,430 - - - 1,179,430 1,199,782 250,707 - - - 250,707 265,624 - - - 8,450,653 8,450,653 6,420,280 1,315 - - 1,315 6,365 11,717 25.077 23.387 180,172 240,353 159.813 1,441,854 378,872 417,415 8,630,825 10,868.966 8.525.024 297,589 11,304 8,620 4,894,486 5,211,999 4,560,794 1,046,887 - - - 1,046,887 1,005,841 250,699 271,958 - 522,657 355,196 106,511 - - 1,054,274 1,160,785 1,096,364 34,648 27,419 42,738 224,850 329,655 260,229 102,142 109,653 196,612 434,641 843,048 723,576 - - - - - 67,680 - - - 604,561 604,561 455,067 - - 831,365 831,365 752,104 27,592 27,592 8,590 99,016 1,722 1,681 - 102,419 101,400 ' - - 669,891 11.337 13.212 33,813 562.892 621.254 660.150 1,698.130 414.009 555.422 8,634,661 11,302,222 10,716.882 (256.276 (35.137 (138.007 (3,836 (433,256 (2.191.858 i - 16,153 15,035 63,145 94,333 240,892 ' - - - 134,460 134,460 134,460 - - - (2,554) (2,554) (938) - - - 11.774 11,774 93.249 - 16.153 15,035 206,825 238,013 467.663 1 (256.276 (18,984 (122,972 202,989 (195,243 (1.724.195 18,000 87,500 87,500 - 193,000 , (20.694 (200,000 (25,000 (245,694 (10.000 (2.694 (112,500 62.500 (52.694 (10.000 (258,970) (131,484) (60,472) 202,989 (247,937) (1,734,195) 100.744 109,645 196.590 - 406.979 383.040 (158,226) (21,839) 136,118 202,989 159,042 (1,351,155) , - - - (322,059) (322,059) - R 177.201 500,537 368,771 2,479.231 3,525,740 4,876,895 ' a S 18.975 S 478.698 $ 504,889 $2.360,161 $ 3,362.723 EE 3,5 I � 82 ' KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 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 Other Prepaid expenses Inventories, at cost Due from other funds Accounts payable Customer deposits Estimated third party payor settlements Accrued expenses Due to the City of Kodiak Other accrued liabilities Total adjustments Net cash used for operating activities Cash flows from noncapital financing activities: State of Alaska, Revenue Sharing payments received Operating transfers (out to) in from other funds Net cash provided by (used for) noncapital financing activities Cash flows from capital and related financing activities: Acquisition and construction of capital assets Proceeds from sate of equipment Principal payments made on capital lease Receipt of gifts restricted by donor for capital purchases Deposit made on capital lease Net cash used for capital and related financing activities Cash flows from investing activities: Change in assets whose use is limited: By Borough Under malpractice funding arrangement By donor for specific purpose Interest and dividends on investments Net cash provided by investing activities Net change in cash and cash equivalents Adjustment for change in year -end ' Cash and cash equivalents at beginning of year Cash and cash equivatents at end of year EXHIBIT E -3 Totals Sanitary Water Sewer Services Utility Utility Hospital 1992 1991 S(256,276 S (35.137 $(138.007 $ (3,836 $ (433,256 $(2,191,858 102,142 109,653 196,612 434,641 - (1) - 604,561 358 (38,757) 5,788 (142,292) - - - 76,618 - - - (8,264) - - - (15,874) 135,000 (100,000) (100,000) (139,400) 13,080 (63,641) 4,934 (145,284) - (10,235) - - - - - (7,795) 5,336 - - (58,092) - 12,240 12,240 - - - (669,891 255,916 (90,741 119,574 (71,072 (360 (125,878 (18,433 (74,908 843,048 723,576 604,560 356,000 (174,903) (809,056) 76,618 48,394 (8,264) (13,751) (15,874) 22,584 (204,400) - (190,911) 70,167 (10,235) 19,743 (7,795) (47,644) (52,756) (59,763) 24,480 - (669,891 708,851 213,677 1,019,101 (219,579 (1,172,757 - 134,460 134,460 159,460 (2,694 (112,500 62,500 - (52,694 (10,000 (2,694 (112,500 62,500 134,460 81,766 149,460 (86,717) (10,195) (18,396) (93,467) (208,775) (146,142) 560 560 - (101,834) (101,834) (12,485) 11,774 11,774 93,249 (67,976 (86,717 (10,195 (18,396 (182,967 (298,275 (133,354 - 23,616 22,498 - 23,616 22,498 (89,771) (224,957) 48,169 91,585 574,608 S 1,814 S$ 34 9,651 - - 109,190 (295,786) (295,786) (257,990) (904) (904) (73,376) 63,145 109,259 240,129 (233,545 (187,431 17,953 (356,960) (623,519) (1,138,698) (168,866) (168,866) - 332,079 1,099,788 2,098,060 3,236,758 S 380,248 S 573,962 $1,3� SS 2,0 83 EXHIBIT E-4 KODIAK ISLAND BOROUGH SANITARY SERVICES ENTERPRISE FUNDS BALANCE SHEET JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 84 1992 1991 ASSETS Current Assets: Equity in central treasury S 1,814 S 91,585 Customer receivables 19,002 19,360 Total current assets 20,816 110.945 Fixed Assets: Unclassified plant in service 2,345,987 2,332,173 Equipment 316,873 243.970 2,662,860 2,576,143 Less accumulated depreciation (384.624 (282,482 Net fixed assets 2,278.236 2,293,661 Total assets $2,299,052 $2.404.606 LIABILITIES AND FUND EQUITY Liabilities: Current Liabilities: Accounts payable S 95,350 S 82,270 Customer deposit 700 700 Accrued expenses 15,328 9,992 Due to general fund 135,000 Total current liabilities 246.378 92.962 Fund Equity: Contributions in aid of construction: State of Alaska 2,412,453 2,412,453 Accumulated amortization (378,754 (278,010 Net contributions in aid of construction 2,033,699 2,134,443 Retained earnings, undesignated 18.975 177.201 Total fund equity 2,052,674 2.311,644 Total liabilities and fund equity $2.299.052 $2,404,606 84 KODIAK ISLAND BOROUGH SANITARY SERVICES ENTERPRISE FUND STATEMENT OF REVENUES. EXPENDITURES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 Revenues: Refuse collection Sanitary service fees Other Total revenues Operating expenses: Personnel services Waste collection Contracted services Repairs and maintenance Depreciation Support - goods and services Installation costs Recycling effort Total operating expenses Operating loss Other expense: Interest Loss before operating transfers Operating transfers in Operating transfer out Net operating transfers 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 EXHIBIT E-5 1991 Actual 51,199,782 265,624 8,913 1,474,319 250,716 1992 (46,873) 294,916 900,000 Variance - (146,887) 1,005,841 Favorable Budget Actual (Unfavorable) $1,146,000 $1,179,430 $ 33,430 263,000 250,707 (12,293) 6,000 11,717 5,717 1,415,000 1,441,854 26.854 EXHIBIT E-5 1991 Actual 51,199,782 265,624 8,913 1,474,319 250,716 297,589 (46,873) 294,916 900,000 1,046,887 (146,887) 1,005,841 108,000 106,511 1,489 8,170 34,000 34,648 (648) 43,036 77,923 102,142 (24,219) 77,923 89,900 99,016 (9,116) 79,655 131,550 - 131,550 - 5,000 11,337 (6,337 19,746 1,597,089 1,698,130 (101,041 1,529,287 (182,089) (256,276) (74,187) (54,968) - - 113 (182,089 (256,276 (74,187 (55,081 18,000 18,000 - - (20,694 (20,694 - (10,000 (2,694 (2,694 - (10,000 S (1� (258,970) S (74,187 (65,081) 100,744 76,805 (158,266) 11,724 177,201 165,477 S 18,975 $ 85 EXHIBIT E -6 KODIAK ISLAND BOROUGH SANITARY SERVICES ENTERPRISE FUND STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 86 1992 1991 Operating loss $(256,276 S(54,968 Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 102,142 77,923 Changes in assets and liabilities: Receivable from customers 358 (10,861) Accounts payable 13,080 44,816 Customer deposits - 700 Accrued expenses 5,336 7,014 Due to general fund 135,000 - Total adjustments 255,916 119,592 Net cash provided by (used for) operating activities (360 64,624 Cash flows from noncapital financing activities: Operating transfers out to other funds, net (2,694 10,090) Net cash used for noncapital financing activities (2,694 1( 0,000 Cash flow from capital and related financing activities: Acquisition and construction of capital assets 8( 6.717 Net cash used for capital and related financing activities 8( 6,717 - Cash flows from investing activities: Interest and dividends paid on investments - _(113) Net cash used in investing activities (113 Net change in cash and cash equivalents (89,771) 54,511 Cash and cash equivalents at beginning of year 91,585 37,074 Cash and cash equivalents at end of year $ 1,814 $ 91,585 86 ASSETS Current Assets: Equity in central treasury Temporary investments Total cash and investments Investment interest receivable Customer receivables Less allowance for doubtful receivable Net customer receivables Total current assets Restricted Assets: Equity in central treasury Temporary investments Interest receivable Due from general fund Total restricted assets Fixed Assets: Unclassified utility plant in service Accumulated depreciation Net utility plant in service Construction work in progress Net fixed assets Total assets LIABILITIES AND FUND EQUITY Liabilities: Current liabilities: Accounts payable Customer deposits Due to City of Kodiak 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 Total liabilities and fund equity KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND BALANCE SHEET JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 1991 S 88,219 S 57,635 - 250,000 88,219 307,635 - 8,27 59,518 20,761 (6,901 (6,902 52,617 13.859 140,836 329,771 8,595 16,973 252,837 250,000 815 8,278 100,000 - 362,247 275,251 5,671,796 5,671,796 (865,094 (755,441 4,806,702 4,916,355 34,667 16,196 4,841,369 4,932,551 $5,344,452 $5,5 S 23,516 S 87,157 23,249 33,484 12,240 59,005 120.641 189,166 189,166 5,482,630 5,482,630 5,671,796 5,671,796 (865,047 (755,401 4,806,749 4,916,395 478,698 500,537 5,285,447 5,416,932 $5,344,452 $5,537,573 EXHIBIT E -7 87 EXHIBIT E -8 KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 Variance - Favorable Budget Actual (Unfavorable) Revenues: Water sales S 326,400 $ 352,480 $ 26,080 Installation charges 2,500 1,315 (1,185) Other 100 25,077 24,977 Total revenues 329,000 378,872 49,872 Operating expenses: Personnel services 25,000 11,304 13,696 Contracted installation - - - Purchased water 230,400 250,699 (20,299) Repairs and maintenance 37,000 27,419 9,581 Depreciation 29,600 109,653 (80,053) Testing 7,900 - 7,900 Advertising and hearings 500 25 475 Printing and binding 500 697 (197) Office supplies and postage 1,100 748 352 Installation costs 70,000 - 70,000 Fuel - 252 (252) Small tools - 13,212 (13,212) Continuing education 2,000 - 2,000 Total operating expenses 404,000 414,009 (10,009) Operating loss (75,000) (35,137) 39,863 Other income: Interest earnings 5,000 16,153 11,153 Loss before operating transfers (70,000) (18,984) 51,016 Operating transfers in - 87,500 87,500 Operating transfers out (200,000) (200,000) - Net operating transfers (200,000) (112,500) 87,500 Net loss S(270,000) (131,484) $138,516 Amortization of contributions in aid of construction 109,645 Decrease in retained earnings (21,839) Retained earnings at beginning of year 500,537 Retained earnings at end of year $ 478,698 1991 Actual S 208,129 6,335 10,776 225,240 21,967 7,593 167,002 32,312 109,653 173 310 1,516 67,680 400 408,606 (183,366) 32,398 (150,968) (150,968) 109,645 (41,323) 541,860 S 500,537 88 EXHIBIT E-9 KODIAK ISLAND BOROUGH WATER ENTERPRISE FUND ' STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 1992 1991 Operating loss $ (35,137 83.366 $083.366 Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 109,653 109,653 Change in provision for uncollectible accounts (1) ' Changes in assets and liabilities: Receivable from customers (38,757) Due from general fund (100,000) - Receivable from State of Alaska - (7,359) Accounts payable (63,641) 75,479 Customer deposits (10,235) 19,043 Due to City of Kodiak 12,240 Total adjustments (90,741 196,816 ' Net cash provided by operating activities (125,878 13,450 Cash flows from noncapital financing activities: Operating transfers out to other funds, net (112,500 Net cash used for noncapital financing activities (112,500 - Cash flows from capital and related financing activities: Acquisition and construction of capital assets (10,195 (506 ' Net cash used for capital and related financing activities 00.195 (506 Cash flows from investing activities: Interest and dividends paid on investments 23,616 32,017 ' Net cash provided by investing activities 23,616 32,017 Net change in cash and cash equivalents (224,957) 44,961 ' Cash and cash equivalents at beginning of year 574,608 529,647 Cash and cash equivalents at end of year S 349,651 S 574,608 89 EXHIBIT E -10 KODIAK ISLAND BOROUGH SEWER ENTERPRISE FUND BALANCE SHEET JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 90 1992 1991 ASSETS Current Assets: Equity in central treasury S 118,817 S 65,106 Customer receivables 47,194 52,981 Less allowance for doubtful accounts (19,663) (19,663) Net customer receivables 27,531 33,318 Total current assets 146,348 98,424 Restricted Assets: Equity in central treasury 8,595 16,973 Temporary investments 252,837 250,000 Interest receivable 815 8,278 Due from general fund 100,000 - Total restricted assets 362,247 275,251 Fixed Assets: Unclassified utility plant in service 9,870,603 9,870,603 Accumulated depreciation (1,290,548) (1,093,935) Net utility plant in service 8,580,055 8,776,668 Construction work in progress 34,594 16,199 Net fixed assets 8,614,649 8,792,867 Total assets $ 9,123,244 $ 9,166,542 LIABILITIES AND FUND EQUITY Liabilities: Current Liabilities: Accounts payable $ 25,919 S 20,985 Due to City of Kodiak 12,240 - Total liabilities 38,159 20,985 Fund Equity: Contributions in aid of construction: City of Kodiak 40,000 40,000 State of Alaska 9,630,603 9,630,603 Federal government 200,000 200,000 9,870,603 9,870,603 Accumulated amortization (1,290,407) (1,093,817) Net contributions in aid of construction 8,580,196 8,776,786 Retained earnings, undesignated 504,889 368,771 Total fund equity 9,085,085 9,145,557 Total liabilities and fund equity S 9,123,244 S 9,166,542 90 KODIAK ISLAND BOROUGH SEWER ENTERPRISE FUND STATEMENT OF REVENUES, EXPENDITURES,_ TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30. 1992 WITH COMPARATIVE TOTALS FOR 1991 EXHIBIT E-11 91 1992 Variance - Favorable 1991 Budget Actual (Unfavorable) Actual Revenues: Sewer service charges $374,400 S 394,028 $ 19,628 S 265,031 Installation charges - - - 30 Other - 23,387 23,387 2,923 Total revenues 374,400 417,415 43,015 267,984 Operating expenses: Personnel services 23,000 8,620 14,380 17,351 Purchased sewer treatment 259,200 271,958 (12,758) 188,194 Repairs and maintenance 30,000 42,738 (12,738) 21,730 Depreciation 42,200 196,612 (154,412) 196,612 Operating supplies 2,000 88 1,912 347 Electric 16,000 17,429 (1,429) 19,338 Telephone - - - 77 Fuel 188 (18 8) - Advertising and hearings 500 94 406 173 Printing and binding 500 697 (197) 310 Office supplies and postage 700 614 86 853 Capital outlay - 13,212 (13,212) - Small tools - 3,172 (3,172) - Continuing education 300 - 300 - Total operating expenses 374,400 555,422 (181,022) 444,985 Operating loss - (138,007) (138,007) (177,001) Other income: Interest income - 15,035 15,035 16,862 Loss before operating transfers - (122,972) (122,972) (160,139) Operating transfers in - 87,500 87,500 - operating transfers out (25,000) (25,000) - - Net operating transfers (25,000) 62,500 87,500 - Net loss S(25,000) (60,472) $ (35,472) (160,139) Amortization of contributions in aid of construction 196,590 196,590 Increase in retained earnings 136,118 36,451 Retained earnings at beginning of year 368,771 332,320 Retained earnings at end of year S 504,889 S 368,771 91 EXHIBIT E -12 KODIAK ISLAND BOROUGH SEWER ENTERPRISE FUND STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR 1991 Operating loss Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation Change in provision for tncollectible accounts Changes in assets and liabilities: Receivable from customers Due from other funds Accounts payable Due to City of Kodiak Total adjustments Net cash provided by operating activities Cash flows from noncepital financing activities: Operating transfers in from other funds, net Net cash provided by noncapital financing activities Cash flows from capital and related financing activities: Acquisition and construction of capital assets 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 1992 1991 $(138,007 $(177,001 196,612 196,612 5,788 (13,490) (100,000) - 4,934 10,081 12,240 - 119,574 193,203 (18,433 16,202 62,500 - 62,500 (18,396 (477 08.396 (477 22,498 16,480 22,498 16,480 48,169 32,205 322,079 299,874 $ 380,248 $ 332,079 92 KODIAK ISLAND BOROUGH HOSPITAL ENTERPRISE FUND BALANCE SHEET JUNE 30. 1992 COMPARATIVE TOTALS - DECEMBER 31, 1990 EXHIBIT E-13 Fund equities: Contributions in aid of construction: Federal government 2,237,104 2,237,104 Kodiak Island Borough 1,451,544 1,451,544 3,688,648 3,688,648 Retained earnings: Temporarily restricted 10,051 - Undesignated 2,350,110 2,479,231 Total fund equity 6,048,809 6,167,879 Total liabilities and fund equity $ 7,191,433 S 7,533,872 93 1992 1990 ASSETS Current assets: Equity in central treasury S 539,346 S 1,099,788 Other cash and cash equivalents 34,616 - 573,962 1,099,788 Receivables: Patients 3,150,809 2,439,651 Other 59,173 47,644 Less allowance for doubtful receivables (1,081,798 (706,000 Net receivables 2,128,184 1,781,295 Prepaid expenses 142,464 28,206 Inventories, at cost 209,878 190,918 Total current assets 3,054,488 3,100,207 Assets - use of which is limited or restricted: By Borough - 658,377 Under malpractice funding arrangement - held by trustee 624,899 257,990 By donor for specific purpose 10,051 73,376 634,950 989,743 Deposit on capital lease - 67,976 Fixed assets: Land 40,275 40,275 Building and improvements 4,105,899 4,104,988 Equipment 2,649,387 1,946,707 6,795,561 6,091,970 Less accumulated depreciation (3,293,566 (2,716,024 Net fixed assets 3,501,995 3,375,946 Total assets S 7,191,433 SS 7,5 LIABILITIES AND FUND EQUITY Liabilities: Current liabilities: Accounts payable $ 230,477 $ 219,954 Accrued expenses 392,585 276,421 Estimated malpractice costs 50,000 730,464 Current portion - capital lease obligation 82,189 24,922 Total current liabilities 755,251 1,251,761 Capital lease obligation 387,373 114,232 1,142,624 1,365,993 Fund equities: Contributions in aid of construction: Federal government 2,237,104 2,237,104 Kodiak Island Borough 1,451,544 1,451,544 3,688,648 3,688,648 Retained earnings: Temporarily restricted 10,051 - Undesignated 2,350,110 2,479,231 Total fund equity 6,048,809 6,167,879 Total liabilities and fund equity $ 7,191,433 S 7,533,872 93 EXHIBIT E-14 KODIAK ISLAND BOROUGH HOSPITAL ENTERPRISE FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30, 1992 COMPARATIVE TOTALS FOR YEAR ENDED DECEMBER 31, 1990 94 1992 1990 Revenues: Patient and resident revenues $ 9,532,451 S 7,387,138 Less allowance for uncollectible accounts (1,081,798 (966,858 Net patient and resident revenues 8,450,653 6,420,280 Other 180,172 137,201 Total operating revenues 8,630,825 6,557,481 Operating expenses: Salaries and wages 3,730,348 3,218,390 Employee benefits 1,164,138 1,008,170 Professional fees 310,628 501,159 Purchased services 743,646 579,442 Repair, maintenance, and rentals 224,850 163,151 Depreciation 434,641 339,388 Bad debts 604,561 455,067 Supplies 831,365 752,104 Interest 27,592 8,590 Lawsuit settlement expenses - 669,891 Other 562,892 638,652 Total operating expenses 8,634,661 8,334,004 Operating loss (3,836 (1,776,523 Other income (expense): Interest income 63,145 191,745 State revenue sharing 134,460 134,460 Loss on asset disposal (2,554) (938) Donor - restricted gifts 11,774 93,249 Total other income 206,825 418,516 Net income (loss) 202,989 (1,358,007) Adjustment for change in year end (322,059) - Retained earnings at beginning of year 2,479,231 3,837,238 Retained earnings at end of year S 2,360,161 $ 2,479,231 94 EXHIBIT E-15 u 1 95 KODIAK ISLAND BOROUGH HOSPITAL ENTERPRISE FUND t STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1992 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31. 1990 ' 1992 1990 operating loss $ (3,836 5(1.776.523 Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 434,641 339,388 ' Change in provision for uncollectible accounts 604,561 356,000 Changes in assets and liabilities: Accounts receivable - Patients (142,292) (777,346) ' Other 76,618 48,394 Prepaid expenses (8,264) (13,751) Inventories, at cost (15,874) 22,584 Accounts payable (145,284) (60,209) Estimated third-party payor settlements (7,795) (47,644) ' Accrued expenses (58,092) (66,777) Other accrued liabilities (669,891) 708,851 Due to general fund (139,400 - ' Total adjustments (71,072 509.490 Net cash used for operating activities (74,908 (1,267.033 Cash flows from noncapital financing activities: t State of Alaska, Revenue Sharing payments received 134.460 159.460 Net cash used for noncapitaL financing activities 134.460 159.460 Cash flows from capital and related financing activities: ' Acquisition and construction of capital assets (93,467) (145,159) Proceeds from sale of equipment 560 - Principal payments made on capital lease (101,834) (12,485) Receipt of gifts restricted by donor for capital purchases 11,774 93,249 Deposit paid on capital lease - (67,976 ' Net cash used for capital and related financing activities (182.967 (132,371 Cash flows from investing activities: Change in assets whose use is limited: ' By Borough - 109,190 Under malpractice funding arrangement (295,786) (257,990) By donor for specific purpose (904) (73,376) Interest and dividends on investments 63.145 191.745 ' Net cash used for investing activities (233,545 (30.431 Net change in cash and cash equivalents (356,960) (1,270,375) ' Adjustment for change in year end (168,866) - Cash and cash equivalents at beginning of year 1,099,788 2.370,163 ' Cash and cash equivalents at end of year S 573,962 S 1,099,788 u 1 95 AGENCY FUNDS Agency Funds are used to account for assets held by a government as an agent for ' individuals, private organizations, other governments, and /or other funds. STUDENT ACTIVITIES FUND This fund accounts for the operations of the various Kodiak Island Borough School District student organizations. DEFERRED COMPENSATION FUND ' This fund accounts for deferred compensation and accumulated earnings thereon for participants in the Borough's Internal Revenue Code Section 457 Deferred Compensation Plan. 1 97 EXHIBIT F -1 KODIAK ISLAND BOROUGH AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS, LIABILITIES AND FUND BALANCES YEAR ENDED JUNE 30, 1992 98 Balance at Balance at July 1, 1991 Additions Deletions June 30, 1992 TOTALS - ALL AGENCY FUNDS ASSETS Cash and cash equivalents $118,502 S 24,120 $ - $142,622 Other receivables 79 361 - 440 Investments (at market value) 710,336 126,748 - 837,084 5828,917 $151,229 S - $980,146 LIABILITIES Accounts payable S 1,285 S 601 S - S 1,886 Due to student organizations 117,296 23,880 - 141,176 Due to participants 710,336 126,748 - 837,084 $828,917 5151,229 $ - $980,146 STUDENT ACTIVITIES FUND ASSETS Cash and cash equivalents 5118,502 S 24,120 $ - $142,622 Other receivables 79 361 - 440 5118,581 S 24,481 S- $143,062 LIABILITIES Accounts payable S 1,285 S 601 S - $ 1,886 Due to student organizations 117,296 23,880 - 141,176 5118,581 S 24,481 S - 5143,062 DEFERRED COMPENSATION FUND ASSETS Investments (at market value) 5710,336 5126,748 S - 5837,084 LIABILITIES Due to participants 5710,336 5126,748 S - $837,084 98 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. 1 99 EXHIBIT G -1 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 Fund revenues Contributions from State of Alaska KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF FIXED ASSETS BY SOURCE JUNE 30. 1992 S 7,506,315 64,790,809 842,139 4,199,988 1.801.632 $79.140.883 547,677,896 575,516 14,139,477 3,318,128 2,953,523 10.476.343 $79.140.883 100 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY JUNE 30, 1992 EXHIBIT G -2 101 Improvements Machinery Other Than and Total Land Buildings Buildings Eguioment Staff agencies: Borough mayor s 20,884 $ $ - f - S 20,884 Borough clerk 19,006 - - 19,006 Finance 59,000 - - - 59,000 Assessing 24,232 - - - 24,232 Community development 96,838 - - - 96,838 Engineering /Facilities 66,795 - - 66,795 Data services 586,477 - - 586,477 Resource management 7,731 - - 7,731 General administration 124,703 - - - 124,703 Building Inspections - - - - MentaL health 59,993 - - 59,993 Total staff agencies 1,065,659 - - - 1,065,659 Public safety: Emergency preparedness 198,843 - 100,000 - 98,843 Fire Protection Area 1 720,099 - 455,584 - 264,515 Bell's Flats Fire District 616,199 - 425,655 - 190,544 Total public safety 1,535,141 - 981,239 - 553,902 Schools 59,294,591 - 59,294,591 - - SchooL equipment 2,580,427 - - - 2,580,427 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 69,943,584 110,648 64,790,809 842,139 4,199,988 Undeveloped Land 7,395,667 7,395,667 - 77,339,251 7,506,315 64,790,809 842,139 4,199,988 Construction work in progress 1,801,632 292,484 967,029 - 542,119 Total general fixed assets $79,140,883 $7, 798,799 $65,757,838 $842. $4,742,107 101 EXHIBIT G -3 KODIAK ISLAND BOROUGH GENERAL FIXED ASSETS GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY JUNE 30, 1992 102 General Fixed General Fixed Assets at Assets at July 1. 1991 Additions Deductions June 30, 1992 Staff agencies: Borough mayor S 25,925 $ - $ 5,041 S 20,884 Borough clerk 36,613 787 18,394 19,006 Finance 72,684 11,580 25,264 59,000 Assessing 24,232 - - 24,232 Community development 88,380 11,514 3,056 96,838 Engineering /Facilities 94,314 - 27,519 66,795 Data services 563,799 22,678 - 586,477 Resource management 10,261 - 2,530 7,731 General administration 137,578 - 12,875 124,703 Mental health 96,258 - 36.265 59.993 Total staff agencies 1.150,044 46.559 130.944 1.065,659 Public safety: Emergency preparedness 194,724 4,119 - 198,843 Fire Protection Area 1 711,571 8,528 - 720,099 Bells Flats Fire District 608.819 7.380 - 616.199 Total public safety 1,515,114 20.027 - 1,535,141 Schools 59,294,591 - - 59,294,591 School equipment 2,450,634 241,301 111,508 2,580,427 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 69.878.149 307,887 242.452 69,943.584 Undeveloped land 7,358,667 37,000 - 7,395,667 Construction work in progress 1.493.112 308.520 - 1.801.632 Total general fixed assets $78 $653,407 $242,452 $79.140.883 102 i GENERAL LONG -TERM DEBT ACCOUNT GROUP ' This is a self- balancing account group which records the long -term debt. This debt is payable from monies presently Funds and from future general Borough revenues. The debt and credit of the Borough. Borough's unmatured general in the various Debt Service is backed by the full faith 103 EXHIBIT H -1 104 KODIAK ISLAND BOROUGH GENERAL LONG -TERM DEBT ACCOUNT GROUP SCHEDULE OF LONG-TERM DEBT JUNE 30, 1992 WITH COMPARATIVE FIGURES FOR 1991 1992 1991 Amount available and to be provided for the payment of general long -term debt: Amount available in Debt Service Funds: Refunding bonds S 6,556,480 S 7,307,730 Accrued annual leave 191,327 167,878 6,747,807 7,475,608 Amount to be provided: Refunding bonds 5,638,520 6,427,270 Environmental Protection Agency 260,414 281,248 5,898,934 6,708,518 $12,646,741 $14 General obligation school bonds: 1991 Refunding S 4,090,000 $ - 1989 Refunding 8,105,000 8,735,000 1986A improvement - 5,000,000 12,195,000 13,735,000 Environmental Protection Agency loan 260,414 281,248 Accrued annual leave 191,327 167,878 451,741 449,126 $12.646.741 $14 184 J 1.26 104 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. 105 EXHIBIT I -1 KODIAK ISLAND BOROUGH KODIAK, ALASKA SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY JUNE 30, 1992 Annual Principal and Interest Requirements General Oblig ation School Refunding Bonds Fiscal Year Principal Interest Total 1993 $ 1,725,000 $ 734,516 $ 2,459,516 1994 1,755,000 633,379 2,388,379 1995 1,795,000 527,247 2,322,247 1996 1,835,000 415,670 2,250,670 1997 890,000 320,937 1,210,937 1998 945,000 258,311 1,203,311 1999 1,015,000 190,928 1,205,928 2000 1,080,000 118,380 1,198,380 2001 1,155,000 40,425 1,195,425 S12,195,000 53,2�793 S15,434,793 106 i C i KODIAK ISLAND BOROUGH EXHIBIT I-2 ' KODIAK, ALASKA GENERAL OBLIGATION SCHOOL IMPROVEMENT BONDS, 1991 SERIES A ' RETIREMENT SCHEDULE ' This issue, dated July 15, 1991, was issued as registered bonds under a book entry system registered in the name of Cede & Company, as Nominee of The Depository Trust Company, New York, New York, the securities depository for the 1991 Bonds. Bonds are retired serially in nimerical order over a period of five years. Retirement dates are semi - annually beginning ' on December 1, 1991 and semi - annually thereafter. These bonds are not subject to redemption prior to maturity. This issue was marketed by John Nuveen & Co. Legal opinion was rendered by bond counsel, Wohlforth & Flint of Anchorage. Bonds were issued to refund the 1986 A issue. Bonds are payable at Seattle First National Bank, Seattle, Washington. 107 Interest Maturity Rate* Principal Interest Total December 1, 1992 F,q,9 3 5.20% S 795,000 $ 112,760 $ 907,760 June 1, 1993 F, '( 3 5.30 250,000 92,090 342,090 December 1, 1993 F-Vil 5.30 780,000 85,465 865,465 June 1, 1994 MAMA 5.60 250,000 64,795 314,795 December 1, 1994 5.60 765,000 57,795 822,795 June 1, 1995 5.60 250,000 ___ 36,375 286,375 December 1, 1995 5.80 750,000 29,125 779,125 June 1, 1996 5.90 250,000 7,375 257,375 $4,090.000 S 485,780 54,575,780 107 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 379 have been retired. Bonds nunbered,2K through 2,000 bear interest at the rate indicated below. 380 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. 108 Bond Principal Interest Interest Fiscal Year Interest Rate Numbers Inclusive Due August 1 Due August 1 Due February 1 Total 1993 6.60 380 -515 $ 680,000 S 276,053 $ 253,613 $ 1,209,666 1994 6.65 516 -660 725,000 253,612 229,506 1,208,119 1995 6.65 661 -816 780,000 229,507 203,571 1,213,077 1996 6.70 817 -983 835,000 203,571 175,599 1,214,170 1997 6.80 984 -1161 890,000 175,599 145,339 1,210,937 1998* 6.85 1162 -1350 945,000 145,338 112,972 1,203,311 1999 6.90 1351 -1553 1,015,000 112,973 77,955 1,205,928 2000 6.96 1554 -1769 1,080,000 77,955 40,425 1,198,380 2001 7.00 1770 -2000 1,155,000 40.425 - 1,195,425 $8,1� $1,515,033 $1,238,980 $10,859,013 * Maturities on and after August 1, 1997 are callable at par on this and any interest date thereafter. 108 EXHIBIT I-4 KODIAK ISLAND BOROUGH ' KODIAK, ALASKA ASBESTOS REMOVAL LOAN PAYABLE ' RETIREMENT SCHEDULE i 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, vohlforth, Argetsinger, Johnson & ' Brecht of Anchorage. Principal Principal Fiscal Interest Due Due Interest ' Year Rate * December 31 June 30 Due* Total 1993 7.00 S 10,416.67 S 10,416.67 S $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 f ' 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 10,416.67 - 20,833.34 2005 7.00 10.414.07 - - 10.414.07 ' !135.414.11 $125.000.04 S - $260 * 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. WE SECTION 3 STATISTICAL SECTION II STATISTICAL TABLES ' Statistical tables reflect social and economic data, financial trends and the fiscal capacity of the governmental unit. 111 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. Source: Borough general ledger 112 Local Service other Fiscal General Roads and Health and Operating Year Government Trails (c) Sanitation (b) Education (b) Transfers Total 1983 $1,857,316 $ 2,034 $ 446,001 $1,386,788 $4,742,292 S 8,434,431 1984 1,588,182 - 709,508 1,478,912 1,185,630 4,962,232 1985 1,677,539 - 547,388 1,608,341 1,080,310 4,913,578 1986 1,877,136 - 563,516 1,662,858 447,669 4,551,179 1987 2,089,508 - 579,930 1,901,130 553,373 5,123,941 1988 1,964,710 - 545,954 2,177,405 890,000 5,578,069 1989 2,208,351 - 517,112 2,128,997 768,100 5,622,560 1990 2,478,619 - 367,921 2,334,650 553,312 5,734,502 1991 2,791,798 - 621,000 2,143,633 460,325 6,016,756 1992 2,739,848 - 706,251 3,027,510 500,000 6,973,603 (a) Includes general fund only. (b) Including operating transfers for this function. (c) Kodiak Island Borough is a second-class borough and does not have road powers. Specific monies are expended for local service roads and trails in the service districts. Subsequent to fiscal period 1978, these monies are administered through a separate fund. Source: Borough general ledger 112 KODIAK ISLAND BOROUGH KODIAK, ALASKA GENERAL REVENUES BY SOURCE (a) LAST TEN FISCAL YEARS TABLE 2 Total $5,650,579 5,008,954 4,768,889 4,421,365 5,049,122 5,351,188 6,472,065 4,686,068 5,810,359 7,180,430 (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 5481,269 loss on investment relating to the Lion Capital Group. Source: Borough general ledger 113 Operating Licenses Inter- Charges Fiscal 421,808 and governmental for Year Taxes Permits Revenue Service 1983 $1,928,259 S 45,444 $3,086,448 $118,064 1984 1,844,572 34,779 2,542,441 44,194 1985 1,868,049 40,386 2,365,386 25,850 1986 2,065,440 53,786 2,277,655 83,849 1987 2,188,750 138,151 2,114,283 99,330 1988 2,491,065 97,959 2,291,627 100 1989 2,515,436 95,748 3,449,948 - 1990 2,640,044 120,145 1,316,238 - 1991 2,823,929 100,868 2,255,951 - 1992 4,067,934 212,936 2,450,339 - TABLE 2 Total $5,650,579 5,008,954 4,768,889 4,421,365 5,049,122 5,351,188 6,472,065 4,686,068 5,810,359 7,180,430 (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 5481,269 loss on investment relating to the Lion Capital Group. Source: Borough general ledger 113 Operating Miscellaneous Transfers S 472,281 $ 83 421,808 121,160 454,218 15,000 (113,025)(c) 53,660 451,518 57,090 355,802 114,635 354,523 56,410 540,851 68,790 456,381 173,230 367,551 81,670 TABLE 2 Total $5,650,579 5,008,954 4,768,889 4,421,365 5,049,122 5,351,188 6,472,065 4,686,068 5,810,359 7,180,430 (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 5481,269 loss on investment relating to the Lion Capital Group. Source: Borough general ledger 113 TABLE 3 KODIAK ISLAND BOROUGH KODIAK. ALASKA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Source: Borough tax records 114 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 1983 $1,876,462 $1,844,867 98.3% $94,231 $1,939,098 103.3% $32,488 1.7% 1984 1,646,752 1,617,654 98.2 31,487 1,649,141 100.1 30,099 1.8 1985 1,508,003 1,492,923 99.0 10,733 1,503,656 99.7 19,366 1.3 1986 2,024,237 1,986,914 98.2 13,502 2,000,416 98.8 43,185 2.1 1987 2,181,410 2,176,543 99.7 12,207 2,188,750 100.3 49,235 2.2 1988 1,926,427 1,912,214 99.3 54,625 1,966,839 102.1 25,610 1.3 1989 1,991,902 1,987,251 99.7 4,474 1,991,725 99.9 21,136 1.1 1990 2,034,500 2,017,190 99.1 12,351 2,029,541 99.7 28,640 1.4 1991 2,237,629 2,189,270 97.8 17,254 2,206,524 98.6 59,745 2.7 1992 3,736,674 3,654,535 97.8 22,178 3,676,713 98.4 92,290 2.5 Source: Borough tax records 114 KODIAK ISLAND BOROUGH KODIAK, ALASKA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS TABLE 4 R die � of L (a) Reflects exemptions of boats and inventories. (b) Exempted $5 tax for small watercraft (boats and skiffs under five ton). Source: Borough assessment and tax records 115 Ratio of Total Assessed REAL PROPERTY PERSONAL PROPERTY TOTAL to Total Estimated Fiscal Assessed Estimated Assessed Estimated Assessed Estimated Actual Tear Value Actual Value Value Actual Value Value Actual Value Value 1983 $307,400,381 $372,300,900 $72,919,918 $169,581,200 $380,320,299 $541,882,100 70.19% 1984 325,435,262 425,976,900 64,550,756 (a) 225,467,800 389,986,018 651,444,700 59.86 1985 353,643,800 385,884,500 50,369,200 186,486,200 404,013,000 572,370,700 70.59 1986 374,136,300 408,336,500 46,204,800 (b) 144,110,900 420,341,100 552,447,400 76.09 1987 369,860,196 398,049,400 39,003,109 199,309,200 408,863,305 597,358,600 68.45 1988 379,969,521 390,550,900 48,795,064 204,075,100 428,764,585 594,626,000 72.11 1989 378,072,396 415,666,660 58,727,868 229,477,103 436,800,264 645,143,763 67.71 1990 406,433,607 435,940,500 73,508,740 267,181,594 479,942,347 703,122,094 68.26 1991 439,710,369 457,383,400 76,594,500 280,085,100 516,304,869 737,468,500 70.01 1992 467,821,217 497,758,275 91,537,867 331,544,400 559,359,084 829,302,675 67.50 3 R die � of L (a) Reflects exemptions of boats and inventories. (b) Exempted $5 tax for small watercraft (boats and skiffs under five ton). Source: Borough assessment and tax records 115 C TABLE 5 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS PER $100 OF ASSESSED VALUE LAST TEN FISCAL YEARS j Acros Road Service Districts Monashka Service Bayview Women's District Bay District 1 Road B_ y 9.00 - 1.50 0.00 0.00 0.50 5.00 - 2.00 0.00 0.00 0.50 5.75 - 2.00 0.00 0.00 0.50 5.75 - 2.00 0.25 0.00 0.10 6.51 - 2.00 0.25 1.00 0.50 6.51 - 2.00 0.25 1.00 0.50 6.50 - 2.00 0.25 1.50 1.50 6.50 - 1.25 0.70 1.00 1.50 6.50 .75 2.00 1.00 1.00 2.50 7.50 .75 2.00 1.75 1.00 2.50 Fire Districts Service KIB City Fiscal General of Year Fund Kodiak 1983 7.00 2.00 1984 3.75 1.25 1985 3.75 2.00 1986 3.75 2.00 1987 4.51 2.00 1988 4.51 2.00 1989 4.50 2.00 1990 4.50 2.00 1991 4.50 2.00 1992 5.50 2.00 j Acros Road Service Districts Monashka Service Bayview Women's District Bay District 1 Road B_ y 9.00 - 1.50 0.00 0.00 0.50 5.00 - 2.00 0.00 0.00 0.50 5.75 - 2.00 0.00 0.00 0.50 5.75 - 2.00 0.25 0.00 0.10 6.51 - 2.00 0.25 1.00 0.50 6.51 - 2.00 0.25 1.00 0.50 6.50 - 2.00 0.25 1.50 1.50 6.50 - 1.25 0.70 1.00 1.50 6.50 .75 2.00 1.00 1.00 2.50 7.50 .75 2.00 1.75 1.00 2.50 Fire Districts Service Woman's District 1 Bay 1.50 0.50 1.50 0.50 1.50 0.50 1.50 0.90 1.50 0.50 1.50 0.25 1.50 0.25 1.25 1.25 1.25 1.25 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 Mileage Year Value Contribution Equivalent 1983 $284,114,955 $1,172,544 4.13 1984 395,620,404 1,478,912 3.74 1985 394,608,581 1,377,345 3.49 1986 406,612,778 1,524,460 3.75 1987 404,859,425 2,140,149 5.29 1988 428,764,585 2,343,992 5.47 1989 423,038,700 2,444,882 5.78 1990 452,016,912 2,469,558 5.46 1991 516,304,869 2,484,606 4.81 1992 559,359,084 3,279,444 5.86 Source: Borough ordinance and assessment records 116 1 KODIAK ISLAND BOROUGH KODIAK. ALASKA TEN LARGEST PROPERTY TAXPAYERS YEAR ENDED JUNE 30, 1992 TABLE 6 * Taxes actually collected were less, in some cases, due to various laws such as personal property within city limits being exempt. Source: Borough tax records 117 Percentage Percentage of Total 1992 (Net)* of Total Assessed Assessed Taxes Taxes Valuation Valuation Levied Levied International Seafoods of Alaska 2.61% $14,621,891 3 80,420 2.15% All Alaskan Seafoods 1.85 10,337,610 56,857 1.52 Washington Fish and Oyster 1.69 9,448,021 51,964 1.39 Alaska Pacific Seafoods 1.66 9,302,672 51,165 1.37 Western Alaska Fisheries 1.57 8,807,773 48,443 1.30 PTI Communications 1.57 8,796,832 48,383 1.29 Sea-Land Services, Inc. 1.37 7,699,373 42,347 1.13 Waldos /0 & Son, Inc. (Retailers) 1.04 5,848,187 32,165 .86 Brechan Enterprises .95 5,327,382 29,300 .78 Mill Bay Plaza Association .76 4,265,700 23,461 .63 Totals 15.07% $84,455,441 $464,505 12.42 * Taxes actually collected were less, in some cases, due to various laws such as personal property within city limits being exempt. Source: Borough tax records 117 TABLE 7 KODIAK ISLAND BOROUGH KODIAK. ALASKA RATIO OF NET GENERAL BONDED DEBT Cc) LAST TEN FISCAL YEARS Sources - (a) Information obtained from assessment records and Borough general ledger except as otherwise noted. (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." 118 Ratio of Net Net Bonded Bonded Less Debt Debt to Debt Fiscal Assessed Gross Service Net Bonded Assessed Per Year Population Value Bonded Debt Fund Debt Value Capita 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(a) 15,558(b) 452,016,912 15,310,000 6,683,745 8,826,255 1.9 567 1991 15,679 516,304,869 13,735,000 7,307,730 6,427,270 1.2 410 1992 15,679 559,359,084 12,195,000 5,638,520 6,268,520 1.0 360 Sources - (a) Information obtained from assessment records and Borough general ledger except as otherwise noted. (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." 118 KODIAK ISLAND BOROUGH KODIAK, ALASKA COMPUTATION OF DIRECT AND OVERLAPPING DEBT YEAR ENDED JUNE 30, 1992 (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. 119 TABLE 8 Percentage Kodiak Applicable Island Net Debt to This BoroughOs Outstanding Governmental Share of (a) Unit (b) Debt (c) Kodiak Island Borough: General obligation bonds S 5,638,520 100% S 5,638,520 City of Kodiak: General obligation bonds 760,000 64 486,400 Revenue bonds 4.240.000 64 2.713.600 Total $10,638.520 $ 8,838,520 (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. 119 TABLE 8 TABLE 9 Assessed value Plus exempt property Total KODIAK ISLAND BOROUGH KODIAK, ALASKA COMPUTATION OF LEGAL DEBT MARGIN JUNE 30, 1992 S 559,359,084 2.027.200.278 $2.586,559,362 The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions. Debt capacity is ultimately determined by the marketplace. Source: Borough assessment records 120 KODIAK ISLAND BOROUGH KODIAK, ALASKA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES AND TRANSFERS LAST TEN FISCAL YEARS TABLE 10 n (a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of term bonds. Source: Borough general ledger and debt documents 121 Ratio of Total Debt Service General to General Fiscal Principal Interest Total Debt Expenditures Expenditures Year (a) and fees Service and Transfers (percent) 1983 S 515,000 $1,185,806 51,700,806 $8,434,431 20.2% 1984 1,750,000 1,555,900 3,305,900 4,962,232 66.6 1985 4,210,000 2,108,539 6,318,539 4,913,578 128.6 1986 5,080,000 1,727,562 6,807,562 4,551,179 149.6 1987 4,750,417 1,787,384 6,537,801 5,123,941 127.6 1988 3,785,834 1,695,468 5,481,302 5,578,069 98.3 1989 5,135,833 1,502,762 6,638,595 5,622,560 118.1 1990 2,260,833 978,583 3,239,416 5,803,292 55.8 1991 1,595,834 1,019,401 2,615,234 6,016,756 43.5 1992 1,685,833 1,008,918 2,694,751 6,973,603 38.6 n (a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of term bonds. Source: Borough general ledger and debt documents 121 TABLE 11 KODIAK ISLAND BOROUGH KODIAK. ALASKA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Fiscal Year Population (a) School Enrollment (b) Unemployment Rate (c) 1983 13,079 2,189 9.7% 1984 13,389 2,180 6.9 1985 13,748 2,295 9.6 1986 13,952 2,285 7.7 1987 14,127 2,329 7.4 1988 14,375 2,531 6.2 1989 15,575 2,304 3.2 1990 15,558 2,328 5.6 1991 15,679 2,398 8.2 1992 15,679 (d) 2,614 5.1 (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. (d) Based upon 1991 census. 122 KODIAK ISLAND BOROUGH KODIAK, ALASKA SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS YEAR ENDED JUNE 30, 1992 TABLE 12 Name of Official Title Annual Salary Amount of Surety Bond (1) Jerome M. Selby Mayor $68,000 (2) See page iv of intro- ductory section Assembly members 2,400 (2) Contracted Attorney - - Karleton G. Short Finance Director /Treasurer 61,526 51,000,000 Earl Smith Fire Chief, Service Area One 64,646 - Perry L. Page Data Processing Manager 60,028 - Donne Smith Borough Clerk 49,275 - Linda Freed Director of Planning and Community Development 73,174 - Vivian Brumbaugh Cashier 25,937 50,000 Patrick Carlson Assessor /Appraiser 60,028 - Pam Delys- Baglien Director of Mental Health 86,985 - Vacant Facilities Coordinator - _ Cheryl Bolger Accountant 45,760 - (1) By ordinance in 1984 the Kodiak Island Borough Assembly elected to decrease the amount of bond payments and to self - insure except for the treasurer and cashier. These positions are bonded at $1,000,000 and $50,000, respectively. (2) Also covered by elected officials' errors and omission policy of $1,000,000. Source: Borough personnel records 123 TABLE 13 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS YEAR ENDED JUNE 30, CONSTRUCTION PROPERTY VALUE Commercial Residential Deposits in Fiscal No. of No. of Local Year Units Value Units Value Banks Commercial Residential Nontaxable 1983 77 $7,708,474 136 $10,631,463 $ 54,032,065 8107,487,339 $199,913,042 E 245,623,546 1984 63 2,965,496 74 5,495,636 59,010,831 104,233,851 220,001,411 739,960,807 1985 62 10,316,833 99 7,928,241 61,598,752 116,411,447 236,302,401 1,053,965,717 1986 54 3,012,970 118 10,563,802 64,420,672 115,574,577 258,311,716 1,127,834,040 1987 35 4,256,169 134 5,313,110 70,402,810 114,409,875 252,950,321 1,134,524,305 1988 42 549,382 91 4,314,003 72,068,409 123,053,031 255,417,891 1,159,131,464 1989 22 1,174,346 131 6,421,773 93,830,000 128,202,254 266,409,021 1,177,364,559 1990 18 1,709,715 104 8,109,662 90,221,433 115,477,806 314,539,889 1,993,871,408 1991 69 3,692,371 152 5,706,524 90,392,243 130,469,150 323,060,260 2,002,661,025 1992 48 3,748,125 163 9,201,613 103,679,201 134,637,371 333,203,846 2,027,200,278 * Estimated actual value. Source: Borough assessing records, City of Kodiak building department and local bankers 124 KODIAK ISLAND BOROUGH KODIAK, ALASKA MISCELLANEOUS STATISTICAL DATA YEARS ENDED JUNE 30, 1983 THROUGH JUNE 30, 1992 Date of incorporation - September 30, 1963, Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended, Form of Government - Mayor /Assembly. Land Area - square miles Miles of improved street Mites of sanitary sewers Number of water taps Number of sanitary sewer taps Building permits: Permits issued Value of buildings (thousands) Fire protection: Number of fire stations Number of employees Police protection - none Recreation: Parks - number of acres Facilities: Number of playgrounds Number of swimming pools Education: Number of schools: City of Kodiak Elementary City of Kodiak Junior High City of Kodiak High School Village Schools (c) Number of support personnel (d) Number of teachers Number of students Number of municipal employees Elections: Number of registered voters Number voting in Last election Percent of registered voters 1983 1984 1985 1986 4,900 4,900 4,900 4,900 16.48 16.48 17.29 19.53 - 3.7 4.2 9.63 309 309 309 410 170 170 170 327 213 137 161 172 $18,339.9 $8,416.1 $17,858.0 $12,196.8 - 2 2 2 - 1 1 1 3,277 4,099 3,414 220(a) 4 5 5 14 1 1 1 1 3 3 3 3 1 1 1 1 1 1 1 1 7 7 7 7 179 174 158 159 150 156 157 154 2,189 2,180 2,295 2,285 46 49 46 49 5,115 5,200 5,603 6,463 1,720 2,079 3,075 2,356 33.6% 44.0% 46.6 % 36.4% (a) Prior years include lands designated recreational; 1986 and after represents actual acres of parks. (b) By annexation, effective March 4, 1989 the Borough has grown an additional 12,830 square miles. Total Borough is now 22,395 square miles with a land mass of 7,130 square miles (see map on page ix). (c) The majority of Village Schools are grades K -12. (d) ALL non - teaching employees. Source: Borough records 126 J TABLE 14 1987 1988 1989 1990 1991 1992 4,900 4,900 7,130(b) 7,130 7,130 7,130 20.3 21.5 21.5 21.5 21.5 21.5 15.49 16 16 16 16 16 659 707 748 748 748 873 619 666 727 727 727 851 169 133 153 122 221 211 $9,570.0 $4,863.4 $7,596.1 $9,819.3 $9,398.9 $12,950.0 2 2 2 2 2 2 1 1 1 1 1 1 222 223 223 223 223 223 15 15 15 15 15 15 1 1 1 1 1 1 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 7 7 8 8 9 9 152 167 172 165 175 166 148 169 167 167 167 164 2,329 2,351 2,304 2,328 2,398 2,614 53 57 66 70 75 72 6,559 5,427 6,150 6,352 6,707 6,263 2,094 2,507 1,459 2,327 1,959 1,986 31.9% 46.2% 23.7% 37.0% 29.0% 31.8% 127