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CAFR FY19981 1 l KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 1998 ' Kodiak, Alaska Jerome Selby, Borough Mayor 1 Prepared by Finance Department: Karleton Short, Finance Director Marian Royall, Revenue Accountant Mary Munk, General Accountant KODIAK ISLAND BOROUGH ' Comprehensive Annual Financial Report For the Year Ended June 30, 1998 TABLE OF CONTENTS INTRODUCTORY SECTION EXHIBIT PAGE ELECTED OFFICIALS ( PHOTOGRAPHS) .......................................................... ............................... v BOROUGHOFFICIALS ......................................................................................... ............................... vii BOARDSAND COMMITTEES ............................................................................. ...................I........... viii MAP OF KODIAK ISLAND BOROUGH .............................................................. ............................... x GFOA CERTIFICATE OF ACHIEVEMENT ........................................................ ............................... xi ORGANIZATIONALCHART ............................................................................... ............................... xii .. LETTER OF TRANSMITTAL ............................................................................... ............................... xu► FINANCIAL SECTION EXHIBIT PAGE INDEPENDENT AUDITORS' REPORT ........................................................... ............................... 1 GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types, Account Groups and Discretely PresentedComponent Unit ................................................................................. ..............................1 Combined Statement of Revenues, Expenditures, Transfers and 2 Changes in Fund Balances - All Governmental Fund Types and Discretely Presented Component Unit ................................................................ ..............................2 Combined Statement of Revenues, Expenditures, Transfers and 6 Changes in Fund Balances - Budget and Actual - General Fund, ' Special Revenue Fund and Debt Service Fund ................................................... ..............................3 Combined Statement of Revenues, Expenses, Transfers and Changes in 8 Retained Earnings - Proprietary Fund Types ...................................................... ..............................4 Combined Statement of Cash Flows - 10 ' Proprietary Fund Types ...................................................................................... ..............................5 Notes to the combined Financial Statements (an integral part of the combined financial statements) 11 12 ' ADDITIONAL INFORMATION COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS AND SCHEDULES ' GENERAL FUND: ' BalanceSheets ................................................................................................ ............................... A -I Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual ........................................................ ............................... A -2 Schedule of Expenditures and Transfers - Budget and Actual ....................... ............................... A -3 31 32 34 I � KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 1998 TABLE OF CONTENTS (conliimec% DE13T SERVICE FUNDS CombiningBalance Sheet ................................................................................... ............................0 -1 67 Combining Statement of Revenues, Expenditures Transfers, and Changes in Fund Balances ........................................................ ............................0 -2 68 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual: Bonds.............................................................................................................. ............................0 -3 69 Ot her............................................................................................................... ............................0 -4 70 CAPITAL PROJECTS FUNDS CombiningBalance Sheet ............................................................................... ............................... D -1 72 Combining Statement of Revenues, Expenditures, , Transfers and Changes in Fund Balances ..................................................... ............................... D -2 74 Schedule of Capital Projects ........................................................................... ............................... D -3 76 ii EXHIBIT PAGE SPECIAL REVENUE FUNDS: CombiningBalance Sheet ................................................................................ ............................... B -1 40 Combining Statement of Revenues, Expenditures, Transfers andChan in Fund Balances ...................................................................... ............................... B -2 44 Statement of Revenues, Expenditures, Transfers and Chances in Fund Balance - Budget and Actual: Fire and Road Service Areas: Fire: FireProtection Area No. I .................................................................... ............................B -3 47 WomensBay Fire Department ............................................................. ............................B -4 48 Kodiak Airport Fire District .............................................. ............................................... B -5 49 Road: Monashka Bay Road Service Area .................................................... ............................... B -6 50 ServiceDistrict No. 1 ........................................................................... ............................B -7 51 Womens Bay Service Area ................................................................... ............................B -8 52 BayView Road Service Area ............................................................... ............................B -9 53 Service No. 2 ............................................................................... ...........................B -10 54 Mental Health Center ................................................................................. ............................B -I 1 55 CoastalManagement ................................................................................. ...........................B -12 56 Child Care Assistance Program .................................................................. ...........................B -13 57 LandSales ................................................................................................... ...........................B -14 58 Buildingsand Grounds ............................................................................... ...........................B -15 59 Woodland Acres Street Light Service Area ................................................ ...........................B -16 60 KodiakArts Council ................................................................................... ...........................B -17 61 Facilities...................................................................................................... ...........................B -18 62 TourismDevelopment ............................................................................ ............................... B -19 63 Kodiak Transit Authority ............................................................................ ...........................B -20 64 L.E. P. C ................................................................................................... ............................... B -21 65 DE13T SERVICE FUNDS CombiningBalance Sheet ................................................................................... ............................0 -1 67 Combining Statement of Revenues, Expenditures Transfers, and Changes in Fund Balances ........................................................ ............................0 -2 68 Statement of Revenues, Expenditures, Transfers and Changes in Fund Balance - Budget and Actual: Bonds.............................................................................................................. ............................0 -3 69 Ot her............................................................................................................... ............................0 -4 70 CAPITAL PROJECTS FUNDS CombiningBalance Sheet ............................................................................... ............................... D -1 72 Combining Statement of Revenues, Expenditures, , Transfers and Changes in Fund Balances ..................................................... ............................... D -2 74 Schedule of Capital Projects ........................................................................... ............................... D -3 76 ii � I KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 1998 TABLE OF CONTENTS (continued) iii EXHIBIT PAGE ENTERPRISE FUNDS: CombiningBalance Sheet .................................................... ............................... ............................E -1 80 Combining Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings ................................................................ ............................... E -2 82 Combining Statement of Cash Flows .............................................................. ............................... E -3 83 Municipal Solid Waste Collection and Disposal Fund: Balance ................................................................................................. ............................... E -4 84 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual ..................................................... ............................... E -5 85 Statements Cash Flows ................................................................................ ............................... E -6 86 Hospital Facilities Fund: Balance ..................................................................... ............................... ............................E -7 87 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual ..................................................... ............................... E -8 88 Statements Cash Flows ................................................................................ ............................... E -9 89 911 Services Fund: Balance ............................................................................................... ............................... E -10 90 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual ................................................... ............................... E -11 91 Statements Cash Flows .............................................................................. ............................... E -12 92 Kodiak Fisheries Research Center Fund: BalanceSheet ...................................................................... ............................... ...........................E -13 93 Statement of Revenues, Expenses, Transfers and Changes in Retained Earnings - Budget and Actual ........................ ............................... ...........................E -14 94 Statementof Cash Flows ............................................................................... ............................... E -15 95 INTERNAL SERVICE FUND: Management Information Systems Fund: BalanceSheets ................................................................................................. ............................... F -1 97 Statement of Revenues, Expenses, Transfers and Changes in in Retained Earnings - Budget and Actual ..................................................... ............................... F -2 98 Statementsof Cash Flows ................................................................................ ............................... F -3 99 iii KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report For the Year Ended June 30, 1998 TABLE OF CONTENTS (continited) GENERAL FIXED ASSETS ACCOUNT GROUP: EXHIBIT PAGE Schedule of Fixed Assets by Source ............................................................... ............................... G -1 101 Schedule of General Fixed Assets by Function and Activity ......................... ............................... G -2 102 Schedule of Changes in General Fixed Assets by Functionand Activity ................................................................................... ............................... G -3 103 GENERAL LONG -TERM DEBT ACCOUNT GROUP: Schedulesof Long -Term Debt ........................................................................ ............................... H -1 105 ADDITIONAL INFORMATION - BONDED INDEBTEDNESS: Summary of Bonded Debt Service Requirements to Maturity ............................ ............................1 -1 107 General Obligation School Refunding Bonds, Series 1989 .............................. ............................... I -2 108 General Obligation Bonds, 1993 Series A ........................................................... ............................1 -3 109 General Obligation Bonds, 1994 Series A ........................................................... ............................1 -4 110 AsbestosRemoval Loan Payable ......................................................................... ............................1 -5 111 STATISTICAL SECTION TABLE PAGE STATISTICAL TABLES: General Governmental Expenditures and Other Uses by Function - Last Ten Fiscal Years ................................................................... ..............................1 113 General Revenues and Other Financing Sources - Last Ten Fiscal Years ............ ..............................2 114 Property Tax Levies and Collections - LastTen Fiscal Years ......................................................................................... ..............................3 115 Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years ........................................................................ ..............................4 116 Property Tax Rates and Contributions to the School District LastTen Fiscal Years ......................_................................................................. ..............................5 117 Ten Largest Property Taxpayers ........................................................................... ..............................6 118 Ratio of Net General Bonded Debt - Last Ten Fiscal Years ................................. ..............................7 119 Computation of Direct and Overlapping Debt ...................................................... ..............................8 120 Computation of Legal Debt Margin ...................................................................... ..............................9 121 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures and Transfers - LastTen Fiscal Years ........................................................................................ .............................10 122 Demographic Statistics - Last Ten Fiscal Years .................................................. .............................11 123 Property Value, Construction and Bank Deposits - LastTen Fiscal Years ........................................................................................ .............................12 124 Miscellaneous Statistical Data - LastTen Fiscal Years ........................................................................................ .............................13 125 tv 1 INTRODUCTORY SECTION s a ` I Vii KODIAK ISLAND BOROUGH BOROUGH OFFICIALS YEAR ENDED JUNE 30, 1998 ' BOROUGH ASSEMBLY Wayne Stevens '99 Robin Heinrichs `98 ' Dr. Bob Johnson `98 Gary Stevens `00 (Presiding Officer) '97 Toni Abell `99 Michael R. Milligan Tuck Bonney '99 Scott Arndt `00 (Deputy Presiding Officer) BOROUGH MAYOR Jerome M. Selby '98 Karleton G. Short ........................................................................................... ............................... Finance Director /Treasurer Chris M. Lynch ............................................................. ............................... ....................Engineering and Facilities Director DonnaSmith ..................................................................................................................... ............................... Borough Clerk ' Linda L. Freed ............................................................. PatrickS. Carlson ................................................................................ ............................... ......................Community Development Director ............................... ........ Assessor Perry L. Page ........................................................................................ ............................... Director of Information Systems RobertA. Himes .................................................................................. ............................... ......................Assistant Fire Chief Charles E. "Bud" Cassidy ....................................................................... ............................... Resource Management Officer Jamin, Ebell, Schmitt & Mason ..................................................... ............................... Borough Attorney (Contracted Firm) Betty Walters .......................................................................................... ............................... Superintendent, School District MaryMunk ............................................................................................................... MarianRoyall .......................................................................................................... ............................... General Accountant ............................... Revenue Accountant Barbara Templeton ....................................................................................................... ............................... Purchasing Agent a ` I Vii KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1998 School Board * Norm Wooten Joe M. Floyd Jack McFarland Jeff Stephan Pat Jacobson Dan Canavan, USCG Rep. Bob Johnson — Assembly Rep. Tom Abell — Assembly Rep. Wayne Stevens — Assembly Rep. Nancy Sweeney - Staff Corrine Rainville, Student Rep. Hosoital Advisory Board * Wayne Stevens Gil Bane Mark K. Buckley Russell Grimm Michael Machulsky Mary A. Monroe Gretchen Saupe Phil Cline, Administrator, ex- officio Lisa Marcato, KIH Staff Dr. Mark Withrow, Chief of Staff Mental Health Center Advisory Board * Jody Burcham Thia Falcone Craig Fanning Barbara Lynn Furin John C. Houser, III Cecil Ranney Cindy Thomas Tuck Bonney, Assembly Rep. Lt. Tish Palmer, CG Rep, ex- officio Robin Gardner, MHC Staff Karen Perkins, KAMI Rep., ex- officio Welby Jensen, MD, Providence Rep, ex- officio Plannine and Zonine Commission * Donna Bell Jerrol Friend Robert Himes Robbie Scheidler Clarence W. Selig Walter Stewart Darlene Turner Woodland Acres Street Liglitin Service Area Advisory Board Phillip Cline * Bob Hatcher, Chair Dave Killeen Citizen Board of Eaualization Jim Carmichael * Karenia Hackett, Chair Tim Hurley Cheryl McNeil, Alternate Pat Carlson, KIB staff Donna Smith, KIB staff Parks and Recreation Committee * David Odell S. Forrest Blau Susan Byersdorfer Steven Honnold Walter Stewart Vincent Walser Kate Wynne Joe Floyd, School Bd. Rep., ex- officio Linda Freed, KIB staff Ian Fulp, City Rep., ex- officio Claire Holland, State Rep., ex- officio Tom Abell, Assembly Rep. Building Code Board of Appeals/ (Architectural Review Board) * Gerald Cloudy Gregg Hacker Jay Johnston Jeff LeDoux Dale Soughers Tom Templeton Robin Heinrichs, Assembly Rep. Bob Tucker, KIBSD Rep. Jack McFarland, School Board Rep. Chris Lynch, KIB Rep. Personnel Advisory Board Warren Russell Christine Jamin Chris Nielsen Dorothy Weeks Rachael Miller, KIB staff Viii 1 F--I e t C LI KODIAK ISLAND BOROUGH KODIAK, ALASKA BOARDS AND COMMITTEES YEAR ENDED JUNE 30, 1998 Data Processing Steering Committee * Jerome Selby Jim Nagan Perry Page Karleton Short Betty Walters David Jones Fire Protection Area No. I Advisory Board * Eileen Probasco Scott Arndt Jeff Halcomb Charles Lorenson Robert Himes, ex- officio Earl Smith, ex- officio Kevin Arndt Bay View Road Service Area Advisory Board * Fred "Sky" Roberts Dawn Black Marcia Oswalt Reed Oswalt James R. Schauff Monashka Bay Road Service Area Advisory Board * Mark Withrow Jeff Hamer Dave Sundberg Tom Knoke Corrine Estelle Ferre Emergency Services Council Carolyn Floyd Jerome Selby Bill Jones, City Manager, City of Kodiak Gary Stevens Charles Wurster, Capt. USCG Service District No. 1 Advisory Board * Kevin Arndt Robert Greene Scott Arndt Ed Mahoney Jennifer Spencer Robert Casey Brian Mayberry Womens Bay Service Area Advisory Board * David Conrad Linda Estes Edward Gondek Tom Trosvig Bob Tarrant Tom Schwantes Mike Welchek Dale L. Rice, ex- officio Kodiak Area Transit System Steering Committee * Pat Branson Wanetta Ayers Marie Bami Tim Blott Woody Konig Wayne Stevens, Assembly Rep. Linda Freed, KIB Staff 2 vacant Airport Advisory Committee * Stosh Anderson Charles Barber Joseph Brodman Robert Himes Ruth Lovejoy Robert B. Wilson, Jr. Arlen Zacharias John Chya, ex- officio CDR Drew Dilkes, CG ex- officio Tina Seelinger, KIB staff Service Area No. 2 Commission Rebecca Bean Miller Connie Estille Ferre Norman Mullen Marcia Oswalt 1 vacancy * Indicates chair ix ARCTIC OCEAN N un "ow PRUDMOE S4 x b as 1 r KODIAK d' ISLAND BOROUGH I ,% WE -- C(RCIE CANADA v AIAEZ CUIf OF ALASKA KooIAK ISLAND NORTH PACIFIC OCEAN ?� 6 \ — k,,iVOftrOAf : " SEMEL DI" r � BRISTOL 84Y F,VRBM S ALASKA --- r rIr �r rr r rrr ■r r � r II�r rr r 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 June 30, 1997 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. _�cE QfFj� N1ED STATES /� 9� CMA M s President '� CXICAW � 00 -e Executive Director X1 KODIAK ISLAND BOROUGH ORGANIZATIONAL CHART FISCAL YEAR 1998 ELECTORATE BOROUGH MAYOR BOROUGH ASSEMBLY ASSISTANT ARTS Cd1NCll BOROUGH ATTORNEY BOROUGH CLERK A SSTANT gRECfOR HUMAN RESOURCES LOCAL ADMINISTRATOR DIRECTOR (LAY C TANCE DEPUTY CLERK S ASµ ) RESOURCE MANAGEMENT RECORDS MANAGER OFFICER ASSESSOR COMMUN17Y DEVELOPMENT ENGINEERING/FACLMES FINANCE DIRECTOR DIRECTOR DIRECTTOR MTEMS DIRECTOR NfltC PROPERLY APPRASER ASSOCIATE PLANNER / MAINTENANCE ENGINEER GENERAL SENIOR SYSTEMS RANGE PLANNING ACCOUNTANT ANALYST CARPENTER/ — EE EE ASSOCIATE PLANNER PROJECT MANAGER ACCOUNTING IECNNICUW ENFORCEMENT OFFICER PAYROLL OPQNA770N5 SUPEIMSOR MAINTENANCE ASSESSMENT CLERK I DRAfTINC TECNNICLW WORKER ACCWN7ING TECMNIdAN MTELN OPERATOR I ACCOUNTS PAY PROJECTS ASSISTANT SECRETARY III REVENUE LAN AtMNTNSIRATOR ACCOUNTANT SECRETARY 111 CASHIER PC TECHNKSA/ I SECRETARY III PRIM BALER OPERATOR I &1LE OPERATOR I BALER OPERATOR I ' Annual Report •Kodiak Island Borough, Alaska - ASSEMBLY MEMBERS- TOM ABELL At Large, 1999 DR. GARY STEVENS DR. BOB JOHNSON WAYNE STEVENS At Large, 2000 At Large, 1998 At Large, 1999 Presiding Officer of Assembly 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, 1998, and the related statements and statistical tables. Respectfully submitted, �f a ��- Karleton G. Short, Finance Director SCOTT ARNDT At Large, 2000 Deputy Presiding Officer JEROME M. SELBY Mayor of Kodiak Island Borough, 1998 ROBIN HEINRICHS At Large,1998 TUCK BONNEY At Large,1999 M F4 r', � I �` N ' I December 1, 1998 To the Honorable Mayor and Members of the Assembly Kodiak Island Borough Kodiak, Alaska Kodiak IslandBorough The comprehensive annual financial report (CAFR) of the Kodiak Island Borough (Borough), Kodiak, Alaska, for the fiscal year ended June 30, 1998, is submitted herewith. The Borough Finance Department prepared this report. Responsibility for the accuracy, completeness, and fairness of presentation, including all disclosures, rests with the Borough. We believe the data, as presented, is accurate in all material respects, is presented in a manner designed to fairly set forth the financial position and results of operations of the Borough as measured by the financial activity of its various funds. All disclosures necessary to enable the reader to gain maximum understanding of the Boroush's financial affairs have been included. This comprehensive annual financial report is presented in three main sections: introductory, financial, and statistical. The introductory section includes background on the Borough, the fund accounting concepts used by the Borough, and some financial presentations. The financial section includes the report of the independent accountants. combined financial statements, notes to combined financial statements, and the more detailed combining and individual financial statements and schedules. The statistical section includes selected financial and general information generally presented on a ten year comparative basis. GENERAL INFORMATION The Kodiak Island Borough lies at the western border of the Gulf of Alaska, approximately 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 710 MILL BAY ROAD KODIAK, ALASKA 99615 -6398 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. A strong Mayor /Assembly form of government governs the Borough. The Borough Assembly is composed of seven members who are elected at- large. The criteria used in determining the reporting entity ,are consistent with the Codification of Governmental Accounting and Financial Reporting Standards Section 2100, "Defining the Reporting Entity". Based on these criteria, the various funds and account groups (being all the funds and account groups of the Borough) shown in the Table of Contents are included in this report. ECONOMIC CONDITION AND OUTLOOK The major economic sectors of the Borough are commercial fishing, logging, and tourism. Being located in the Gulf of Alaska and the North Pacific Ocean places the Kodiak Island Borough near some of the richest fishing grounds in the world. In 1996, Kodiak was ranked third among commercial fishing ports in the United States in terms of value of seafood landed. Landings to the Port of Kodiak in 1996 were 202.7 million pounds. The major sector of the Kodiak economy is, by far, commercial fishing, accounting for eighty percent of the severance tax revenue collected. According to Alaska Fish and Game, 266,962,938 pounds of fish were landed at the Port of Kodiak in 1997 with an exvessel value of $82,885,874, 1996 showed a value of $81,827,258. What is interesting is comparing percentages of weight with the percentages of value. The top four species in 1997, according to weight, are pollock with 31% of the weight, pacific cod with 27 %, salmon with 22 %, and flatfish with 6 %. In comparing the dollar value for 1997, the top four in terms of value are halibut with !Q4ni 25% of the value, salmon with 23 %, pacific cod with 19 %, and pollock with 10 %. (Flatfish was in the top four in weight, but only had 4% of the value. Halibut was in the top four in value, but only had 4% of the weight.) Salmon has been the traditional mainstay for Kodiak's fisheries. The following table shows the salmon catch for calendar years 1995 - 1998. (The number of salmon caught and the dollar value for 1998 is estimated.) Number of Pounds of Dollar Value of Salmon Caught Salmon Caught Salmon Caught 1998 26,400,000 105,574,000 $ 29,800,000 1997 14,457,593 57,800,575 $ 18,795,950 1996 9,215,978 46,571,702 $ 25,762,142 1995 N/A 187,389,313 $ 50,500,000 The fluctuation in weight is due to the cyclical nature of the salmon. The fluctuation in the dollar value is due to the international market. It seems that Norway and Chile have driven down the price of Alaska wild salmon by farming salmon in their countries. The severance tax revenue collected for timber in fiscal year 1997 was $272,035. Fiscal year 1998 saw it drop to $179,401. This decline is due to the economy in Asia and Japan. These two markets are the main customers of Alaskan timber. The domestic market is not an option because of the U.S. shipping laws. To sell to the domestic market, American shipping companies must be used. This drives up the price of Alaskan timber, making the domestic market unprofitable. The tourism industry in Kodiak is based on our natural resources and is therefore seasonal. Tourists come to our island to enjoy tite beauty of the island through hunting, hiking, camping, and fishing. They also come for the history, the culture and the wildlife that is abundant throughout Kodiak. Calendar year 1998 saw the arrival of Princess Cruise Ships with their cruise ship The Emerald Princess which docked in Kodiak ten times this year. It is possible that Princess Cruise Lines will be back next year and that Holland Cruise Lines might join also. The labor force in Kodiak is dominated by the fishing industry. Thirty -one percent of the local labor force is employed in the fish harvesting area. Manufacturing, mainly seafood processing, employs 24% of the work force. The U. S. Coast Guard and 0MA other government entities make up 21 %. Retail and wholesale sector have 8 %, the service sector has 9 %, with the remaining 7% in construction, transportation, communication, utilities, financial services, insurance and real estate. Employment varies throughout the year with July, August, and September, being the peak months because of the increased activity in the canneries and declines in November and December when fishing quotas are reached. The unemployment rate as of June 30, 1998 was 3.2 percent compared to 7.7 percent in 1997 and 13.7 percent in 1996. The local unemployment rate has fluctuated from 5 to 14 percent over the last ten years. MAJOR INITIATIVES In preparing the fiscal year 1998 budget, the Kodiak Island Borough identified several major projects to be addressed during the year. All major projects are listed in Exhibit D -3 of the comprehensive annual financial report. The most significant project undertaken in fiscal year 1998 is the landfill vertical expansion. This project includes final contour configurations of the site, drainage control, slope stability, and allowances for future lateral expansions phases. In addition, work will include leachate control and treatment, construction of new wastewater storage facilities, closure of a portion of the existing landfill, and mining of future lateral expansion phases to provide material for proposed work. The hospital remodel project is virtually complete, with the exception of a few punch list items; and the Kodiak Fisheries Research Center will be completed in fiscal year 1999. Capital projects either started or expanded in fiscal year 1998 totaled $4,630,136. DEPARTMENT OR ACTIVITY SERVICE EFFORTS AND ACCOMPLISHMENTS The Borough provides a variety of services including education, health, solid waste collection and disposal, planning and zoning, public improvements, and general administration. The Borough provides for education through the Kodiak Island Borough School District. In order to provide adequate health care, the Borough has leased the Hospital and Care Center to t �1 1 �J 1 Providence of Alaska Medical Center. Providence of Alaska took over the operation of the Mental Health Center on January 2, 1998. The Borough is responsible for solid waste collection and disposal. Collection services are contracted through an outside source. The Borough has four road service areas, two fire protection areas, and one street light service area. Each year the Borough selects a department to highlight for its efforts and accomplishments. For fiscal year 1998, we have selected the Assessing Department. The Borough Assessing Department comprises a staff of 4 with an Assessor, Appraiser and 2 Clerical Staff. The department annually values over 750 million dollars of taxable property at the statutory basis of 100% of its market value. The department also maintains a comprehensive database on all property including vessels, aircraft and business equipment. The maintenance of the real property roll is accomplished in two annual stages. The first stage is a phased audit program, whereby all properties are physically visited and reviewed on a 3 -year cycle. The second portion of the valuation program is based on a sales ratio study, whereby properties are stratified by category and price class and reviewed and revalued if subject to substantial price movements. The department subscribes closely to the appraisal standards required by the Appraisal Foundation through the Uniform Standards of Professional Appraisal Practice and the International Association of Assessing Officers. The department is currently implementing state of the art techniques which, when complete, will include a computer -aided mass appraisal system (Kb Systems), digital mapping system (AutoCAD), geographic information system (GIS), and a digital imaging system (DDSI) which will be interfaced with the IBM AS /400 mainframe financial system (New World). This new technology addresses two immediate needs, the first of which is to insure that the department is Year 2000 compliant or in other terms that the computer assets will function properly in the year 2000. The system also provides a long -term comprehensive system to address all departmental needs on a cost - effective long -term and sustainable basis. As the tax roll continues to grow, the department will be able to keep up by wise and efficient use of this new technology. More importantly, the department will be able to provide the community with the ability to find and generate information quickly and correctly. Without the new system it was a difficult and expensive task just to answer a simple question such as how many single - family homes are owned by non- residents in a certain area. It is the intent of the Assessor to make access available to the public via modem and the Internet, so that the citizens can use this information for a variety of needs. In effect the goal is to create a "Property Information and Valuation Office ". To move beyond the historic role of just valuing property for tax purposes to a point where the office can serve a variety of information needs on a long term basis for the community, in order to facilitate planning and positive decision making. FINANCIAL INFORMATION DISCUSSION OF CONTROLS Management is extremely aware of the importance of a strong internal control structure. Although present controls are considered to be highly satisfactory and adequate, they continue to. be scrutinized periodically for enhancements. Internal Control Structure The Borough's accounting system depends upon a strong system of internal controls. The Borough Finance Department focuses on all aspects of internal control. The Borough Finance Department wants to ensure the safeguarding of Borough assets and the delivery of reliable and accurate financial information. Duties are segregated as much as possible in a small office, which limits individual control over any one area. Internal control policies are reviewed at least annually and documented to reflect any procedural changes that are deemed necessary. Cross training and segregation of duties are considered valuable in the internal control structure. Budgetary Controls The Borough uses the modified accrual basis of accounting for governmental funds and the accrual basis for enterprise and internal service funds. Under I xv the modified accrual basis of accounting, revenues A public hearing and the adoption of a budget are recognized when measurable and available and ordinance appropriates all new funds. The Assembly expenditures are recognized when incurred. makes appropriation transfers between funds and/or departments only after the adoption of an ordinance. Budgetary control is maintained by an annual Borough staff may execute transfers between line appropriation system supplemented with an items within a department. additional appropriation approximately halfway through the fiscal year. Budgetary control is also maintained through the use of an encumbrance system. As purchase orders, contracts, and other obligations are issued, corresponding amounts of appropriations are reserved by the use of encumbrances so that appropriations will not be overspent. GENERAL GOVERNMENT FUNCTIONS The following chart summarizes General Fund revenues for the fiscal year ended June 30, 1998. This chart includes General Fund revenues only. License; Intergovernmen 25% 'roperty Taxes 60% Severance T 9% xvl Investment Income 4% The following schedule summarizes changes from the prior year for General Fund revenues: 2,455,140 Property tax is the largest source of revenue for the General Fund of the Kodiak Island Borough. The increase in property tax revenue is due to an increase in the mill rate from 6.75 in fiscal year 1997 to 9.25 in fiscal year 1998. Severance tax revenues increased from $845,638 in fiscal year 1997 to $931,695 in fiscal year 1998. The tax related to the fishing industry increased by $176,709 while the severance tax on timber decreased by $92,634. The licenses, permits, fees and other revenue increase is attributed to the housing market. Fiscal year 1998 had forty more building permits issued than fiscal year 1997, bringing the total number of permits to 188 with a total value of $24.7 million dollars. The following chart illustrates General Fund expenditures for the year ended June 30, 1998, by function: Culture and re 5% Education 16% General Government 54% Health and 11 °/ r..- --Y 3% Will Community Development 11% Increase (Decrease) Revenue Sources Over 1997 Property Taxes $ 1,921,500 Severance Taxes 86,057 Intergovernmental 342,803 Licenses, Permits, Fees and Other 86,942 Investment Income 17,838 2,455,140 Property tax is the largest source of revenue for the General Fund of the Kodiak Island Borough. The increase in property tax revenue is due to an increase in the mill rate from 6.75 in fiscal year 1997 to 9.25 in fiscal year 1998. Severance tax revenues increased from $845,638 in fiscal year 1997 to $931,695 in fiscal year 1998. The tax related to the fishing industry increased by $176,709 while the severance tax on timber decreased by $92,634. The licenses, permits, fees and other revenue increase is attributed to the housing market. Fiscal year 1998 had forty more building permits issued than fiscal year 1997, bringing the total number of permits to 188 with a total value of $24.7 million dollars. The following chart illustrates General Fund expenditures for the year ended June 30, 1998, by function: Culture and re 5% Education 16% General Government 54% Health and 11 °/ r..- --Y 3% Will Community Development 11% Changes in expenditures for major General Fund functions of the Borough over the preceding year are shown in the following tabulation: General Fund expenditures increased $288,448 in fiscal year 1998. The majority of this increase, $339,194, can be attributed to education. There was a decrease of $177,064 in health and sanitation, while general government increased $97,273. It is the goal of the Kodiak Island Borough to maintain a General Fund balance of at least 1.5 to 2 million dollars. The fund balance as of June 30, 1998, was $1,569,205. The following table reflects the fund balance of the General Fund at the close of business for the past ten fiscal years: General Fund Balance Last ten fiscal years PROPRIETARY OPERATIONS In fiscal year 1998, the Municipal Solid Waste Fund had an operating loss of $50,435. Although this loss comes after achieving an income in fiscal year 1997 of $476,498, the fund did better than anticipated. The budget for fiscal year 1998 showed an expected loss of $77,000. Revenues were $38,464 higher than projected and the expenses exceeded the budgeted amount by $11,899. On April 22, 1997 the Kodiak Island Borough leased the Kodiak Island Hospital to Providence Health System in Alaska. The Hospital Facilities Fund accounts for the bonded debt related to the construction of the hospital addition. The main source of revenue is the monthly lease payment of $60,000. The hospital also gets a portion of state revenue sharing. Their portion for fiscal year 1998 was $70,751. The net income was $1,600,095. This amount includes an operating transfer of $1,300,000, xviii C1 J 1 C1 1 L 1 Increase (Decrease) Expenditures Over 1997 General Government $ 97,273 Public Safety 13,025 Health and Sanitation (177,064) Education 339,194 Culture and recreation 15,000 Community Development 1,020 $ 288,448 General Fund expenditures increased $288,448 in fiscal year 1998. The majority of this increase, $339,194, can be attributed to education. There was a decrease of $177,064 in health and sanitation, while general government increased $97,273. It is the goal of the Kodiak Island Borough to maintain a General Fund balance of at least 1.5 to 2 million dollars. The fund balance as of June 30, 1998, was $1,569,205. The following table reflects the fund balance of the General Fund at the close of business for the past ten fiscal years: General Fund Balance Last ten fiscal years PROPRIETARY OPERATIONS In fiscal year 1998, the Municipal Solid Waste Fund had an operating loss of $50,435. Although this loss comes after achieving an income in fiscal year 1997 of $476,498, the fund did better than anticipated. The budget for fiscal year 1998 showed an expected loss of $77,000. Revenues were $38,464 higher than projected and the expenses exceeded the budgeted amount by $11,899. On April 22, 1997 the Kodiak Island Borough leased the Kodiak Island Hospital to Providence Health System in Alaska. The Hospital Facilities Fund accounts for the bonded debt related to the construction of the hospital addition. The main source of revenue is the monthly lease payment of $60,000. The hospital also gets a portion of state revenue sharing. Their portion for fiscal year 1998 was $70,751. The net income was $1,600,095. This amount includes an operating transfer of $1,300,000, xviii C1 J 1 C1 1 L 1 which came from the capital protect account. The $1.3 million is the amount that is left over from the hospital construction project. This net income, $1.6 million, when applied to the deficit in retained earnings from fiscal year 1997, brings the retained earnings account to $418,619. The 911 Service Fund was established to collect money for phone charges in order to pay for, install and maintain an automatic call out system for emergency services. The money is collected by the phone company and remitted to the Borough. Fiscal year 1998 shows a deficit in retained earnings of $40,914; this is a result of purchasing the equipment. FIDUCIARY OPERATIONS The Kodiak Island Borough handles all fiduciary activity with the same care and due diligence that we exercise with any of our funds. All amounts due are withheld, collected, accounted for, and remitted promptly. Periodically, the State of Alaska informs each participating entity of the Public Employees Retirement System (PERS) of changes in employee and employer contribution rates. Amounts are budgeted, withheld, and remitted accordingly. Annually the State of Alaska PERS revises the actuarial assumptions. When such occurrence creates a deficiency, that amount is paid within the period of notification or when a subsequent budget is adopted. The Borough administers property tax collections for all governmental entities within the Kodiak Island Borough. For service areas within the Borough, the revenue is recognized in that area's particular fund. Property taxes collected for the City of Kodiak are remitted monthly for the amount collected the previous month. All other fiduciary collection activity (i.e., federal withholding, FICA, insurance, pension fund, etc.) is accounted for and promptly remitted to the agency involved. DEBT ADMINISTRATION Summary of debt principal outstanding at fiscal year end was: General Obligation, School Refunding, 1989 $ 3,250,000 General Obligation, 1993 6,785,000 General Obligation, 1994 9,985,000 State of Alaska ADEC loans 99,698 Enviromental Protection General obligation, 1994 Agency Loan 135,415 General obligation, 1993 $ 20,255,113 The State of Alaska Statutes and the Kodiak Island Borough Code do not establish a legal debt margin. The voters of the Kodiak Island Borough ultimately determine the amount of debt that can be outstanding. The Borough has an eight million- dollar revenue bond authorized but not issued. Currently it is shown as an interfund receivable /payable between the Kodiak Fisheries Research Center and the Facilities Fund. As of June 30, 1998, net per capita bonded debt is $1,381. For comparison purposes, following is the net per capital bonded debt for the past ten years: General Bonded Debt Per Capita Last ten fiscal years ," a I xix FiF Yr Moody's Standard Investors and Service Poors General obligation, 1994 Aaa AAA General obligation, 1993 Aaa AAA General obligation, school refunding, 1989 Aaa AAA As of June 30, 1998, net per capita bonded debt is $1,381. For comparison purposes, following is the net per capital bonded debt for the past ten years: General Bonded Debt Per Capita Last ten fiscal years ," a I xix FiF Yr CASH MANAGEMENT Effective cash management is essential to the long- term stability and profitability of any organization. Day -to -day cash management is considered a priority within the Borough, and we utilize proper monitoring procedures for timely receipt and deposit of all funds. INVESTMENT POLICIES The Borough Finance Director is the central treasurer for all Borough funds. This includes the Borough, School District, and Mental Health Center. The Borough uses a cash pool concept in which all funds are self - balancing. Each fund is a unique entity and has its own cash account, which, on occasion, may show a "book overdraft" while others have an excess of cash. In this manner, the Borough is able to fully invest all idle funds without creating a "bank overdraft ". Deposits are made daily and all idle funds are invested on the following day. The Borough recognizes that there is frequently some exposure to uninsured and uncollateralized deposits. Great strides have been made in minimizing this exposure through increased collateral and selection of banks and brokers with additional insurance. A local servicing bank sweeps the total balances to another account on a daily basis. U.S. Treasuries at 102 percent of carrying value collateralize this account. A third -party bank holds the collateral. All new investments are purchased on a delivery versus payment system. This means that when the Borough purchases a new instrument, such as a Treasury bill or an agency note, our servicing bank pays for the instrument when it is delivered to them. The servicing bank holds all investments in the Borough's name. Management feels that this is the safest way of holding our investments. The Borough's investment policy is far more restrictive than that of many governments. The operational parameters are defined in Title 3, Chapter 4, of the Borough Code. Basically, it states that we invest only in high -grade securities that are fully collateralized and/or insured. Further, the collateral is to be held by a third -party bank. During the past year, the investments of the Borough have fluctuated between $12 and $23 million. Interest rates for our fiscal year started at 5.25 percent to 6.5 percent in early July 1997. At year- end, investments were earning from 5.25 percent to 6.06 percent for an average yield of 5.75 percent. We ended the year with investment earnings for all funds in the amount of $1,367,766. RISK MANAGEMENT "Risk management" is a term used to describe those activities practiced by managers to minimize or control exposure to potential losses. Mention the word "risk management" and most people think of insurance, which is the traditional method used to manage risks. Insurance provides financial protection against accidental loss but cannot prevent losses. However, by managing exposure, we can prevent unexpected losses. The Kodiak Island Borough has increased risk management activities as a result of several factors, one being the increased state and federal regulations related to this issue. We have a Safety Committee that meets monthly and discusses the accident prevention program and develops loss prevention policies in an effort to manage risk exposure. Several areas of concern are now addressed including hazardous material management, bloodborne pathogens, sexual harassment awareness, accident prevention, ergonomics, and evaluation of work environments to prevent cumulative trauma. The Borough presents training to employees to address these and other issues as part of the accident prevention program, an integral component of an effective risk management program. OTHER INFORMATION INDEPENDENT AUDIT The Borough Code requires an annual audit to be made of the books of account, financial records, and transactions of all administrative departments of the Borough. We have complied with this requirement and the auditors' opinion has been included in this report. The Alaska Statutes require single audits and define these requirements in 2 AAC 45.010. The Borough also complies with the "Federal Single Audit Act of 1984" as amended by the "Single Audit Act Amendments of 1996 ", and the "Drug -Free Workplace Act of 1988." xx 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, 1997. The Certificate of Achievement is a prestigious national award - recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such a report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Borough has received a Certificate of Achievement for the last ten consecutive years (fiscal years ended 1988 - 1997). 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 Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Kodiak Island Borough for its annual budget for the fiscal years beginning July 1, 1990 through July 1, 1997. The Borough has submitted its annual budget for the fiscal year beginning July 1, 1998, and believes that it will also meet the criteria for this award. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operating guide, as a financial plan, and as a communications medium. 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 issues of Who's Who in the West and Who's Who in the World ACKNOWLEDGMENTS I wish to express my appreciation to all the members of the Finance Department for their efficient and dedicated service during the past year. I wish to thank your office and the members of the Borough Assembly for their interest in and support of the planning and conducting of the financial operations of the Borough in a responsible and progressive manner. Respectfully submitted, 4&, - 4. 4'4�- KARLETON G. SHORT DIRECTOR OF FINANCE xxl FINANCIAL SECTION �J 1 1 GENERAL PURPOSE FINANCIAL STATEMENTS The General Purpose Financial Statements include the basic financial statements and notes to the financial statements which are essential to the fair presentation of financial position and results of operations and the cash flow of proprietary funds and similar trust funds. t f I Deloitte & buche Deloitte & Touche LLP Suite 1500 550 West 7th Avenue Anchorage, Alaska 99501 INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the Assembly Kodiak Island Borough Kodiak, Alaska Telephone: (907) 272 -8462 Facsimile: (907) 264 -3181 We have audited the accompanying general purpose financial statements of Kodiak Island Borough, Alaska, as of June 30, 1998, and for the year then ended, listed in the foregoing table of contents. These general purpose financial statements are the responsibility of the management of Kodiak Island Borough, Alaska. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, such general purpose financial statements present fairly, in all material respects, the financial position of the Kodiak Island Borough, Alaska, at June 30, 1998, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of Kodiak Island Borough, Alaska. These financial statements and schedules are also the responsibility of the management of Kodiak Island Borough, Alaska. Such additional information has been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the general purpose financial statements taken as a whole. The statistical data on pages 113 through 125 are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Kodiak Island Borough, Alaska. Such additional information has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, accordingly, we express no opinion on it. In accordance with Government Auditing Standards, we have also issued our report dated October 2, 1998, on our consideration of Kodiak Island Borough's internal control over financial reporting and our tests of its compliance 1 with certain provisions of laws, regulations, contracts and grants. � - z�P October 2, 1998 1 DeloitbeTouche ToWlift KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT AS OF JUNE 30, 1998 (with comparative totals for 1997) Proprietary Governmental Fund Types Fund Types Special Debt Capital General Revenue Service Projects Enterprise ASSETS AND OTHER DEBITS ASSETS: Equity in central treasury Temporary investments Other cash and cash equivalents Receivables. Accounts and other receivables, net State of Alaska Federal Government Property taxes, net of allowance of $15,828 Land sales contracts, due within one year Due from other funds Due from primary government Inventories Prepaid expenses /expenditures Long -term interfund advances Restricted assets: Temporary investments With fiscal agent Land sales contracts receivable, due after one year Fixed assets, net of accumulated depreciation where applicable Construction work -in- progress OTHER DEBI I'S: Amount to be provided for claims and judgements Amount available in debt service fund Amount to be provided for retirement of general long -term debt TOTAL $ 667,288 $ 1,044,467 S 589,247 $ 1,037,382 $ 54,767 2,234,133 - - 6,003,810 89,871 201,438 101,697 - 47,660 225,259 116,053 318,708 15,833 346,801 - 338,027 - 81,636 740,200 344,141 790,000 277,007 7,799 - 8,000,000 139,520 308,203 196,396 - 6,422,684 11,906,168 $ 3,556,929 $ 10,490,903 $ 605,080 $ 7,779,794 $ 20,113,479 The accompanying notes are an integral part of these combined financial statements. 2 EXHIBIT 1 Totals Proprietary Primary Component Fond'I)pes Account Groups Government Unit Totals Internal General General Long- (Memorandum School (Memorandum Only) Service Fixed Assets Term Debt Only) District 1998 1997 S 87,242 S S S 3,480,393 S S 3,480,393 S 742,314 - 8,327,814 8,327,814 13,909,759 _ 364,226 364,726 233,333 576,044 30,601 606,645 754,777 797,395 2,344,419 3,141,814 2,568,679 - 11,295 11,295 679,802 338,027 - 338,027 158,033 81,636 - 81,636 188,233 1,874,341 691,110 2,565,451 4,121,122 - 1,669,638 1,669,638 1,359,525 - 277,007 192,117 469,124 499,218 16,848 24,647 - 24,647 32,878 - 8,000,000 8,000,000 - 139,520 139,520 150,768 208,203 208,203 1,642,622 - 196,396 - 196,396 263,713 387,292 96,177,757 102987,733 3,691,789 106,679,522 106,311,993 - 28,345,940 40.252,108 - 40,252,108 27,046, 260 - - - 156,000 156,000 - 594,663 594,663 - 594,663 809,888 - - 19,820,662 19.820,662 430,629 20,251291 22,047,917 S 491.382 S 124,523,697 S 20,415,325 S 187,976,589 S 9,581,824 $ 197,558,413 S 183,520,834 (conlrnned) 3 KODIAK ISLAND BOROUGH COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT AS OF JUNE 30, 1998 (with comparative totals for 1997) The accompanying notes are an integral part of these combined financial statements. 4 Proprietary Governmental Fund Types Fund Types Special Debt Capital General Revenue Service Projects Enterprise LIABILITIES. FIND EQUITIES AND OTHER CREDITS LIABILITIES: Accounts payable $ 181,642 $ 214,525 $ 10,417 $ 1,805,952 $ 258,400 Retainages payable - - - 790,350 - Accrued compensation, annual leave, payroll taxes and related benefits 85,054 1,514 - 20,455 Other accrued liabilities 27,066 - - Customer deposits - 300 - Deferred revenues 279,387 60,000 Claims and judgements - - - Due to City of Kodiak 24,324 38,583 Due to component units 1,669,638 - - - Due to other funds - 600,200 1,015,000 259,141 Due to student organizations Current portion of note payable 523,349 Current portion of capital lease obligations 230,973 Accrual for landfill closure and postclosure costs 2,200,131 Note payable 2,450,303 Capital lease obligations 1,154,520 Long -term interfund borrowings 8,000,000 General obligation bonds payable Environmental Protection Agency loan Alaska Dept. of Environmental Conservation loans - - - - - Total liabilities 1,987,724 1,095,926 10,417 3,611,302 15,195,855 FUND EQUITIES AND OTHER CREDITS: Contributions in aid of construction, net - - - - 1,684,937 Investment in eeneral fixed assets - Contributed capital 5,147,927 Retained earnings (deficit) - (1,915,240) Fund balances: Reserved: Encumbrances 4.593,097 Fuel inventory - Impact Aid - - Unreserved: Designated for subsequent year expenditures 1,569,205 594,663 (424,605) Undesignated - 9,394,977 - - Total fund equities and other credits 1,569,205 9,394,977 594,663 4,168,492 4,917,624 TOTAL $ 3,556,929 $ 10,490,903 $ 605,080 $ 7,779,794 $ 20,113,479 The accompanying notes are an integral part of these combined financial statements. 4 EXHIBIT 1, continued Totals (Memorandum Only) 1998 1997 S 9.965 S S $ Totals 122,940 S Proprietary 2,273,455 Primary Component Fund Types Account Groups Government Unit Internal General General Long- (Memorandum School Service Fixed Assets Term Debt Only) District Totals (Memorandum Only) 1998 1997 S 9.965 S S $ 2,480,901 $ 122,940 S 2,603,841 $ 2,273,455 - 790,350 - 790,350 487.372 38,812 160,212 306,047 2,627,090 2,933,137 3,031,245 - - 27,066 27,066 1,723 300 - 300 675 339,387 63,816 403,203 429,223 - 243,000 243,000 - 62,907 - 62,907 - 1,669,638 - 1,669,638 1,359,525 1,874,341 691,110 2,565,451 4,121,122 - 200,656 200,656 178,933 523,349 - 523,349 492,063 230,973 230,973 329,819 2,200,131 2,200,131 1,984,423 2,450,303 2,450,303 2,971.335 1,154,520 1,154,520 1,407 947 - 8,000,000 8,000,000 20,020,000 20,020,000 20,020,000 21,660,000 135,415 135,415 135,415 156,248 - 99,698 99,698 - 99,698 - 48,777 20,415,325 42,365,326 3,948,612 46,313,938 40,885,108 617,382 - 2,302,319 - 2,302,319 2,376,558 - 124,523,697 124,523,697 3,691,789 128,215,486 124,085,977 - 5,147,927 - 5,147,927 4,298,512 (174,777) (2,090,017) - (2,090,017) (2,685,769) 4,593,097 737,540 5,330,637 17,043,379 - 153,006 153,006 178,958 - - 1,191,680 1,739,263 1,739,263 2,875,073 - - 9,394,977 1,050,877 10,445,854 (6,728,672) 442,605 124,523,697 - 145,611263 5,633,212 151,244,475 142,635,726 $ 491,382 $ 124,523,697 S 20,415,325 S 187,976,589 $ 9,581,824 $ 197,558,413 $ 183,520,834 5 1 1 KODIAK ISLAND BOROUGH COMBINED STATEMENT OF REVENUES, EXPENDITURES,TRANSFERS, AND CHANGES IN FUND BALANCES ALL GOVERNMENT FUND TYPES AND DISCRETELY PRESENTED COMPONENT UNIT YEAR ENDED JU NE 30, 1998 (with comparative totals for 1997) ' Special Debt General Revenue Service REVENUES: Property taxes $ 6,657,899 $ 472,949 $ lntergovenumental: State sources 1,530,321 1,156,884 Federal sources 1,208,754 5,657 Land sale proceeds - 4,148,612 Severance taxes 931,695 - Licenses, permits, fees and other local revenues 195,425 663,984 ' Investments and property 389,252 528,732 14,840 In -kind services - - - Total revenues EXPENDITURES: 10,913,346 6,976,818 14,840 Current: Borough assembly 129,212 - - Borough mayor 199,994 Borough clerk 282,769 ' Borough attorney 191,017 Finance department 606,413 Assessing department 295,230 Borough engineering & facilities department 86 Community development department 424,789 60,393 Building official 98,989 - Economic development 68,251 - General and administration 307,976 1,429,824 Emergency preparedness 2,366 - School district support 602,666 - Health and sanitation department 408,742 1,425,916 Education, culture and recreation 178,300 - Capital outlay: Schools - - Service district maintenance 277,879 General - - Debt service: Principal 1,660,833 ' Interest 1,139,287 Fiscal agent fees - 2,079 Total expenditures 3,796,800 3,193,012 2,802,199 Excess (deficienc)) of rcvenue over (under) expenditures 7,116,546 3,782,806 (2,787,359) O "rHER FINANCING SOURCI[S (USES): Operating transfers in from component unit - - 1,651,332 Operating transfers in from other funds 1,168,761 1,033,907 Operating transfers in from primary government - - , Operating transfers out to component unit (4,804,000) Operating transfers out to other funds (2,792,282) (609,001) (113,105) Operating transfers out to primary government - - Net other financing sources (uses) (7,596,282) 559,760 2,572,134 , Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (479,736) 4,342,566 (215,225) FUND BALANCES, at beginning of year 2.048,941 5,052,411 809,888 ' Residual equity transfers in - - Adjustments to reserve for fuel inventory - - FUND BALANCES, at end of year $ 1,569,205 $ 9,394,977 $ 594,663 I he accompanying notes are an integral part of these combined financial statements. 6 EXHIBIT 2 Totals Component 129,212 110,699 Primary Unit Totals 194.574 Capital Government School (Memorandum Only) 273,955 Projects (Memorandum Only) District 1998 1997 $ 7.130.848 $ $ 7,130,848 $ 5,294,025 3,787.280 6,474,485 17,105,217 23,579,702 20,546,113 3.080,735 4,295,146 3,526,856 7,822,002 4,149,976 - 4,148,612 - 4,148,612 2,459,762 - 931,695 - 931,695 845,638 254,310 1,113,719 374,646 1,488,365 1,457,550 190,677 1,123 - 1,123,501 1,481,248 - - 795,622 795,622 819,588 7,313,002 25,218,006 21,802,341 47,020,347 37,053,900 129.212 129,212 110,699 199,994 199,994 194.574 282,769 282,769 273,955 191,017 191,017 125,258 606,413 606,413 560,870 295,230 295,230 323,492 86 86 - 485,182 485,182 504,047 98,989 98,989 83,920 68,251 68,251 71,684 1,737,800 1,737,800 1,473,200 2,366 - 2,366 4,410 602,666 24,764,333 25,366,999 23,939,862 1,834,658 - 1,834,658 2,895,765 - 178,300 178,300 163,300 668,790 668,790 668,790 451,471 - 277,879 277,879 287,636 7,768,730 7,768,730 7,768,730 9,299,212 - 1,660,833 1,660,833 1,565,833 1,139,287 1,139,287 1,237,938 - 2,079 2,079 2,058 8,437,520 18,230,531 24,764,333 42,994,864 43,569.184 (1,124,518) 6,987,475 (2,961,992) 4,025,483 (6.515.384) 1,651,332 1,651,332 2,718,131 1,731,720 3,934,388 - 3,934,388 5,756,949 - - 4,864,000 4,864,000 3,995,000 (60,000) (4,864,000) - (4,864,000) (3,995,000) (1,300,000) (4,814,388) (4,814,388) (4,256,949) - (1,651,332) (1,651,332) (1,718,131) 371,720 (4,092,668) 3,212,668 (880,000) 2,500,000 (752,798) 2,894,807 250,676 3,145,483 (4,015,284) 4,921,290 23,932,888 1,727,918 25,660,806 26,121,052 - - - - 1,405,646 - (37,171) (37,171) 21,348 $ 4,168,492 $ 26,827,695 $ 1,941,423 $ 28,769,118 $ 23.532,762 KODIAK ISLAND BOROUGH ' COMBINED STATEMENT OF REVENUES, EXPENDITURES, ' AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND, SPECIAL REVENUE FUND AND DEBT SERVICE FUND , YEAR ENDED JUNE 30, 1998 REVENUES. Property taxes Intereovernmental. State sources Federal sources Land sale proceeds Severance taxes Licenses, permits, fees and other local revenues Investments and property Total revenues General Fund Variance - Favorable Budget Actual (Unfavorable) $ 6,631,560 $ 6,657,899 $ 26,339 1,535,520 1,530,321 (5,199) 1,280,200 1,208,754 (71,446) 1,073,000 931,695 (141,305) 491,520 195,425 (296,095) 440,000 389,252 (50,748) 11,451,800 10,913,346 (538,454) EXPENDITURES: (200,295) Current: ("'38,749) Borough assembly 133,560 129,212 Borough mayor 199,430 199,994 Borough clerk 279,940 282,769 Borough attorney 190,000 191,017 Finance department 655,000 606,413 Assessing department 313,710 295,230 Borough engineering & facilities department - 86 Community development department 430,500 424,789 Building official 95,770 98,989 Economic development 68,000 68,251 General and administration 313,110 307,976 Emergency preparedness 5,500 2,366 School district support 273,875 602,666 I lealth and sanitation department 463,810 408,742 Education, culture and recreation 174,300 178,300 Capital outlay. Service district maintenance Debt service. Principal Interest Fiscal agent fees Other - Total expenditures 3,596,505 3,796,800 Excess (deficiency) of revenue over (under) expenditures 7,855,295 7,1 16,546 OTI IER FINANCING SOURCES (USES) Operating transfers in from component unit - - Operating transfers in from other funds Operating transfers to component unit (4,804,000) (4,804,000) Operating transfers out to other funds (2,786,775) (2,792,282) Net other financing sources (uses) (7,590,775) (7,596,282) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses $ 264,520 (479,736) FUND BALANCES, at beginning of year 2,048,941 FUND BALANCES, at end of the year $ 1,569,205 fhe accompanying notes are an integral part of these combined financial statements 8 4,348 (564) (2,829) (1,017) 48,587 18,480 (86) 5,711 (3,219) (251) 5,134 3,134 (328,791) 55,068 (4,000) (200,295) ' ("'38,749) _ ) ' s (o,a07) E k $ (744,256) s ( ti a EXHIBIT 3 73,120 1,390,391 2287,327 384,530 4,135.368 60,393 1,429,824 1,425.916 277,879 12,727 (39,433) 861,411 106,651 1,660,840 1,139,300 5,000 1,660,833 7 1,139,287 13 2,079 2,921 - 4,700 3 782 806 328 737 1 739 8401 1 7873591 1 47519 1 Special Revenue Funds Debt Service Funds 1,651,332 11,762 Variance- Variance - 730,161 1,028,400 Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 454,680 1 472,949 $ 18,269 $ $ $ 1,106,427 1,156,884 50,457 (95,836) 5,500 5,657 157 (71,870) 4,147,500 4,148,612 1,112 5,052,411 1,240,040 663,984 (576,056) 635,290 528,732 (106,558) 70,000 14,840 (55,160) 7,589,437 6,976,818 (612,619) 70,000 14,840 (55,160) 73,120 1,390,391 2287,327 384,530 4,135.368 60,393 1,429,824 1,425.916 277,879 12,727 (39,433) 861,411 106,651 1,660,840 1,139,300 5,000 1,660,833 7 1,139,287 13 2,079 2,921 - 4,700 3 782 806 328 737 1 739 8401 1 7873591 1 47519 1 Z, 1,639,570 1,651,332 11,762 438,600 1,168,761 730,161 1,028,400 1,033,907 5,507 (610,820) (609,001) 1,819 - (113,105) (113,105) (172,220) 559,760 731,980 2,667,970 2,572,134 (95,836) $ 3,281,849 4,342,566 $ 1,060,717 $ (71,870) (215,225) $ (143,355) 5,052,411 809,888 $ 9,394,977 $ 594,663 Z, 1 KODIAK ISLAND BOROUGH EXHIBIT 4 COMBINED STATEMENT OF REVENUES, EXPENSES, TRANSFERS ' AND CHANGES IN RETAINED EARNINGS t PROPRIETARY FUND "TYPES YEAR ENDED JUNE 30, 1998 (w ith comparative totals for 1997) ' i Totals Reporting Entity (Memorandum Only) , Internal Enterprise Service 1998 1997 OPERATING REVENUES: Solid waste collection $ 1,539,677 $ $ 1,539,677 $ 1,593,818 Solid waste disposal 870,753 870,753 741,941 ' State sources - revenue sharing 70,751 70,751 - Charges for services /customer charges 51,270 662,543 713,813 687,683 Lease proceeds 720,000 - 720,000 120,000 Other 26,742 - 26,742 16,568 ' 3,279,193 662,543 3,941,736 3,160,010 s OPERATING EXPENSES: 1 Personnel services 349,450 432,619 782,069 773,908 ' Solid waste collection 1,163,688 - 1,163,688 1,110,129 Contracted services 288,120 - 288,120 247,268 Repairs and maintenance 33,415 84,603 118,018 57,652 Landfill closure and postclosure costs 227,512 - 227,512 (246,629) Depreciation 697,911 88,859 786,770 286,859 ' Professional services - - 102,097 Supplies - 45,129 45,129 32,958 General and administration 196,962 62,668 259,630 234,946 Medicaid refund 163,140 163,140 - ' Telephone services 185,776 185,776 Recycling services 68,009 68,009 11,058 Contributions 50,536 50,536 74,907 3,424,519 713,878 4,138,397 2,685,153 operating income (loss) (145,326) (51,335) (196,661) 474,857 OTHER INCOME (EXPENSES) Loss on sale of assets (10,940) (10,940) (1,288) Interest income 244,265 244,265 8,591 Interest expense (395,151) (395,151) (249,991) Net income (loss) from continuing operations (307,152) (51,335) (358,487) 232,169 , TRANSFER (TO) FROM OTHER FUNDS: Operating transfers in from other funds 1,300,000 1,300,000 - Operating transfers out to other funds (420,000) (420,000) (1,500,000) Operating transfers in from component units - - - 726,797 Operating transfers out to primary government - - - 11,726,797) , Net other financing sources (uses) 880,000 880,000 (2,500,000) Income from discontinued operations 1.295,093 Loss on disposal of component unit hospital - - (74,971) ' Atnonizanon of conh'tbutlons in aid of cunslructiun 74,239 - 74.23 276,805 I Increase (decrease) in retained earnings 647,087 (51,335) 595,752 (770,904) , Retained earnings (deficits) at beginning of year (2,562,327) (123,442) (2,685,769) 1,487,657 f Transfer of sewer and water funds to the City of Kodiak (1,409,757) ' Residual equity transfer out (1,992,765) Accumulated deficits at end ofyear $ (1,91 $ (174,777) $ (2,090,017) $ (2,685,769) ' The accompanying notes are an integral part of these combined financial statements. 10 KODIAK ISLAND BOROUGH cxu/uccs COMBINED STATEMENT uF CASH FLOWS PROPRIETARY FUND TYPES YEAR ENDED JUNE 30 |vvo ix comparative totals Ior 1997) ^~^ �I -, P - S- 1998 1197�� IOKI.C OPI RA.IN(,=MI '(LOSS)~°" CAM '°OV"�BY OPLRA FING AC I I=" .+~~~ ""°. RX��" °°"" r,,." r ~~6 " d �� .°=. .m� ~~~~�~~°~~°~~~� "~"° ^°~..+.�.~° �u"v ^- A-. bl� .�~...^~.~^ .,." .,.o `.m,^., .°~ 17.725 ..,u ,,7,. ^~~~-^^~~~~=' °, �" "° w"w �~°~ °/~, "~"*.t~-J� ./m"° ( 1 375,859 ..�^ W, -1 *+^ x"� 11, ^"^ =~ ww ,u" �~' =°~ ``" ^-di"^~~ ~^~.��.~~ 215,7.8 ^."= (132 2- . —. ~~~~ '-°ffi� Ih = 3&5= p=° =- ... J=n- I 1A72.352 11 ^~'�J~^'^~''^ - _(314 y 7)126.1139 - _ - 11 FIX 4 2 8)------721 729 N�.-^ *i-^= ^~~'''"^'''^~^ (4 5) 7" 1)--_7417W�-_(385e89)-_-__2,115 789 CASH 11="FR NON°°w.== RIL^aam°"m°.°,~.=°� C..h~~^~"*~.I-,~/"~ 203 69' "~~.@ I-�_° d., f-16 "20 `.X)) "°"W) '1,5=l-. O "�=~"~° ft- /^~.~/ `~..~.~.."... ".°~.. ,^�,,, . P .~~ ~ ~F-J. ,.^°"^. I nn,m�,~=~-d %,,- (703 ^2�) ..~~.1.~ °.~ "^,°~ ^L,."~~~Sh~" -~,d 7t� 111 N�l~^ .... dd I.0 '~~^"''^'fi-- _--lix" -----�-_-880 (KY) (2,729 504) °~'"^="""= CAN "°AND ki ^"`HNA"CL" ^C I ~"":S ^, ~-p-' .,°'"'', .°°w ,° °.^", n.�"'" .~ ,~~ IF r°''" *u.." �,�. "".°" ~� ._~ ^~~... e ^~"(.^. P, = ~~~^Fr- -1, .1 4 .. P -nl °~ ~~ °89,.^. (489,746 .°^°~ ~~ -& ~~,U 1-, v".". ,52 273 ( 2°.") ) "~ 68631 k-,pl ° ~In.d ~~.,~. -_2 10 NIX, _----�_---IWIlm._-----251 955 Ne~^~~.Jd**-d=~+ `d~"j"~..... v ~~-~' ."``'^"` r^°w p°°o,. ."~^" CASI I F FROM m.°,ING^"rFV"^" "h�,�~.~".^~-..~_" .°"..~~_'^^u..w=-"^.~^ u.^°. ",^°" ".°..M. ��.�. --�"�� "^4" "�� .��~~*�^��° ^= w �~I., ~~~~ ww b.. ~"^~°.d.~~~—n, 244 265 °.0 67,2�1 ~~U~° ^76.92M. °.__a=~tm~° ---3117 057-_---�_---397,057---_--__�- =-h_&d 1.0 ~~~. ~~~~ --2076989�-----�___2�076 y99'-----(2 198 c 711) ".^I- .","~` ~~ (68,"' (1 71K CASI. AND L I^"~ ~,~ --_129,276_--81.106-_-2io 382---_-1 '149 561 I � KODIAK ISLAND BOROUGH NOTES TO THE COMBINED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1998 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The Kodiak Island Borough (Borough) was organized to perform the municipal duties allowed by Alaska Statutes and as directed by its residents. As required by generally accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Each discretely presented component unit is reported in a separate column in the combined financial statements to emphasize it is legally separate from the government. The Borough reviewed its relationship with other organizations and determined that the following two organizations are component units. 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 education related fixed assets and incurs the debt, if necessary, to finance the acquisition and construction of school facilities. The Borough Assembly approves the total annual budget of the School District and may, during the year, increase or decrease the total appropriation. The Borough levies and collects taxes for the School District. Complete financial statements for the component unit may be obtained at the entity's administrative offices for the Kodiak Island Borough School District. Kodiak Island Borough School District 722 Mill Bay Road Kodiak, Alaska 99615 Total columns on the combined statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Nor are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of these data. Certain 1997 balances have been reclassified to conform to the current year presentation. B. Measurement Focus, Basis of Accounting and Basis of Presentation The accounts of the Borough are organized and operated on the basis of funds and account - groups. A fund is an independent fiscal and accounting entity with a self - balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance- related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The Borough has the following fund types and account groups: Governmental funds are used to account for the Borough's general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible -to- accrual (i.e., when "measurable and available "). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The Borough considers all revenues available if they are collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long -term debt that is recognized when due, and certain compensated absences and claims and judgments that are recognized when the obligations are expected to be liquidated with expendable available financial resources. 12 I �, r�l Property taxes, franchise taxes, severance taxes, licenses, interest and special assessments are susceptible -to- accrual. Other receipts and taxes become measurable and available when cash is received by the Borough and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt, or earlier if the susceptible -to- accrual criteria are met. Expenditure- driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Governmental funds include the following fund types: The general fund is the Borough's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Special revenue funds account for revenue sources that are legally restricted to expenditure for specific purposes, not including expendable trusts or major capital projects. Debt service funds account for the servicing of general long -term debt not being financed by proprietary or nonexpendable trust funds. Capital projects funds account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary or nonexpendable trust funds. Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned, and expenses are recorded at the time liabilities are incurred. The Borough applies all applicable Financial Accounting Standards Board (FASB) pronouncements in accounting and reporting for its proprietary operations. Proprietary funds include the following fund types: Enterprise fiords are used to account for those operations that are financed and operated in a manner similar to private business or where the board has decided that the determination of revenues earned, costs incurred and /or net income is necessary for management accountability. The internal service fund accounts for operations that provide services to other departments or agencies of the government on a cost - reimbursement basis. Account Groups The general fixed assets account group is used to account for fixed assets not accounted for in proprietary or trust funds. The general long -term debt account group is used to account for general long- term debt and certain other liabilities that are not specific liabilities of proprietary or trust funds. Summarized below are the major sources of revenue and the applicable recognition policies: Property Taxes Property taxes are based on the assessed value of taxable property as of January 1. Pursuant to Alaska Statute 29.45.240, the Borough establishes the mill rate on or before June 15. Tax bills are then mailed on or before July 1 st. Taxes are due when billed and generally become delinquent on or after October 15th. The Borough code also provides for split payments. If a taxpayer avails himself of this provision, one -half must be paid on or before August 15th and the remainder becomes due on or before November 15th (in lieu of October 15th). Borough property tax revenues are recognized in the fiscal year in which they become measurable and available, which is generally the year following the year the tax bills are mailed. All taxes are delinquent on November 16th, and a tax foreclosure process may commence as outlined in Alaska Statutes Title 29. Briefly, this entails the petition for Judgment of Foreclosure signed by the District Court Judge and the publication of all delinquent taxes in the local newspaper for four consecutive weeks. Real property tax liens are enforced by one general foreclosure proceeding against the delinquent properties. Severance Taxes Severance taxes are based on the amount and value of natural resources severed from the environment. Types of resources taxed include seafood, gravel and mineral resources, and timber. Severance tax returns are sent to appropriate companies (as determined by the Borough assessor) and are returned to the Borough Finance Department. The returns are filed quarterly, and are due by the end of the month following the quarter's end. Borough severance tax revenues are recognized in the fiscal year in which they become measurable and available. 13 To ensure accuracy in the 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. lnteruovernmental Revenue State - shared revenues, 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 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, and unrealized gains and losses on investments held at fiscal year -end. Land Sales Proceeds and Other Local Revenues Amounts received pursuant to land sale contracts are recorded on the cash basis. Noncurrent portions of long -tern receivables due to Governmental Fund Types are reported on the associated balance sheets, in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered available spendable resources since they do not represent net current assets. Recognition of Governmental Fund Type revenues represented by noncurrent receivables is deferred until they are paid. Other local revenues are recorded on a basis consistent with their nature in relation to measurement and availability standards. C. Budgets and Budgetary Accounting Borough The Borough follows these procedures in establishing the budgetary data reflected in the combined financial statements: 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 citizen 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. d. Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or administrative action. Generally, the following actions are required at the level of the particular change: 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: Capital Projects Funds - project level; all other funds - department level. 6. All funds, except Capital Projects Funds, are budgeted on an annual basis encompassing a fiscal year. Budgets of Capital Projects Funds generally encompass the period from start-up to project completion, which is generally greater than one year. 7. Appropriations lapse at year -end to the extent that they have not been expended for all funds, except Capital Projects Funds, which lapse at project completion. 14 8. Budgets adopted b the Borough Assembly are in b r y s } 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 by ordinance to approve the School District budget in total only and appropriate the necessary resources no later than April 30 of the current fiscal year. The School Board retains line item authority once the annual local appropriation is set by the Borough Assembly. In the year ended June 30, 1998, there were two formal budget revisions to adjust the revenues and expenditures to available resources and program needs. 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 I operating transfers. Nonrecurring or nonroutine transfers of equity between funds are recorded as equity transfers. Long -term interfund transfers of funds are accounted for as long -tern interfund advances /borrowings. See Note 8 for additional disclosure. Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of moneys, are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds and Capital Projects Funds. Encumbrances outstanding at year -end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. It is the Borough's policy to void all open purchase orders at year -end that are not in the Capital Projects funds. Inventories Expendable operating supplies of the Borough are accounted for using the purchase method, and at June 30, 1998 there are no significant amounts of such inventories on hand. The Hosptital Enterprise Fund also has at June 30, 1998 amounts of inventory assigned to Providence as of April 21, 1997 which, by the terms of the lease agreement for the hospital facilities (see Note 18), are required to be returned to the Borough at the termination of the lease in at least equal value. Retirement Plans All full -time employees of the Borough and School District participate in either the Alaska Public Employees' Retirement System (PERS) or the Alaska Teachers' Retirement System (TRS). The Borough and School District accrue pension expense that includes current costs and amortization of prior service costs. The policy is to fund pension costs accrued. Annual Leave The Borough records its liability for accrued annual leave in the Governmental Fund Types for the amounts estimated to be liquidated with current available resources. The commitment for accrued annual leave not included in the Governmental Fund Types is recorded in the General Long -Term Debt Account Group. All fiends record annual vacation 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 "restricted assets." 15 F. Use of Estimates Preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these financial statements. Actual results may differ from the estimates. Significant estimates include the allowance for doubtful accounts, the useful lives of assets and related accumulated depreciation, accrued landfill closure and post - closure care costs. 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 are carried at fair value, as determined by quoted market prices. Deposits At June 30, 1998, the carrying amount of the Borough's and Component Unit's deposits were $3,480,393 and the bank balances were $4,624,870. The year end bank balances are both insured by the Federal Deposit Insurance Corporation and collateralized by Government and Agency Obligations and General Obligation Bonds of a Municipality. Collateral, in the amount of $4,030,000, is held in the Borough's name at State Street Bank, as custodian for the Borough. 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. The carrying amount of temporary investments approximates fair value. At June 30, 1998, the Borough's investment balances were categorized as follows: Category Carrying 1 2 3 Amount U.S. Government Securities $ 6,078,881 $ - $ - $ 6,078,881 Certificate of Deposit 100,000 - 11,212 111,212 $ 6,178,881 $ - $ 11,212 6,190,093 Municipal League Investment Pool 2,137,721 Total Investments $ 8,327,814 '['he above deposits of $3,480,393 and investments of $8,327,814 totaling $1 1,808,207 are reported under the following captions in the combined financial statements: Equity in central treasury $ 3,480,393 Temporary investments 8,327,814 Total deposits and investments $ 11,808,207 For the fiscal year ended June 30, 1998 the Borough adopted Governmental Accounting Standards Board Statement No. 31, Accounting for Certain Investments and for External Investment Pools. The Borough now reports investments at fair value in the balance sheet, and reports the changes in the fair value of investments as revenue in the operating statement. Borough management believes that the cumulative effect on fund balance upon adoption is immaterial to the general purpose financial statements as a whole, and therefore no cumulative effect has been recorded, and prior year 0 balances have not been restated to conform with current year presentation. 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, data processing services, the annual independent audit, and snow removal services. These are reflected as in -kind services in the financial statement of the School District. NOTE 4: RETIREMENT COMMITMENTS The Borough and School District component unit participate in the Alaska State Teachers' Retirement System (TRS), a cost- sharing, multiple - employer pension plan that covers the School District's certificated employees, and the Alaska Public Employees' Retirement System (PERS), that covers most of the employees not covered by TRS. Each plan issues a publicly available financial report that includes financial statements and required supplementary information. Those reports may be obtained from the State of Alaska, Department of Administration, Division of Retirement Benefits, P.O. Box 11 -0203, Juneau, Alaska 99811 -0203. A. PERS Plan description: As of June 30, 1998, all regular employees of the Borough who work more than fifteen hours per week participate in the Alaska Public Employees' Retirement System (PERS). PERS is an agent multiple - employer, statewide defined benefit plan, administered by the State of Alaska. 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 all remaining years of service. All service earned prior to July 1, 1986 will be calculated using the 2% multiplier. Employees with 30 or more years of credited service (20 years for peace officers and firefighters) may retire at any age and receive a normal benefit. The system also provides death and disability benefits and major medical benefits. Funding policy: Under State law, covered employees are required to contribute 6.75% of their annual covered salary and the Borough is required to contribute an actuarially determined rate - the current rate is 6.91% of annual covered payroll. Annual pension cost: For the year ended June 30, 1998, the Borough's annual pension cost was $180,700 for PERS which was equal to the required and actual contribution. The actuarial required contribution was computed as part of an actuarial valuation as of June 30, 1996. Significant actuarial assumptions used in the valuation include: (a) a rate of return on the investment of present and future assets of 8.25% per year compounded annually and (b) projected salary increases of 5.5% a year for the first five years of employment and 4.5% per year thereafter, with distinction made between amounts for inflation (4.0 %), merit for the first five years (1.0 %), and productivity (0.5 %). The contribution rate for normal cost is determined using the projected unit credit actuarial funding method. The excess of assets over the actuarial accrued liability is amortized over 25 years. The percentage of pay method is used for amortization purposes. Three -year trend information for PERS Annual Percentage Net Year pension of APC pension ended cost (APC) contributed obligation 6/30/96 $ 387,000 100% $ - 6/30/97 370,000 100% - 6/30/98 180,700 100% - B. Component Unit Retirement Commitments The following is a summary of selected information on the component unit's retirement commitments. Complete pension disclosures are presented in the component unit financial statements. S 1 School District participation in PERS, a defined benefit agent multiple- employer plan, is separate from the Borough's participation. Benefits are the same as described for the Borough's participation. For the years ended June 30, 1998, 1997 and 1996, the School District's annual pension cost was $184,000, $335,000 and $355,000 and equal to the required and actual contributions. TRS is a cost - sharing, multiple- employer defined benefit plan. Participation is compulsory for certified personnel. Employees hired prior to July 1, 1990 with eight years or more of credited service are entitled to annual pension benefits beginning at normal retirement age 55 equal to 2% of their highest three -year average annual compensation for each year of service. The Plan permits early retirement at age 50. For employees hired after June 30, 1990, the normal and early retirement ages are 60 and 55, respectively. Employees may elect to receive their pension benefits in the form of a joint or survivor annuity. Effective January 1, 1987, a married member who retires must receive his or her benefit in the form of a joint and survivor annuity unless the member's spouse consents to another form of benefit. Minimum benefits for employees eligible for retirement are $25 per month for each year of credited service. In addition, major medical benefits are provided. TRS also provides death and disability benefits. For the years ended June 30, 1998, 1997 and 1996, the School District's annual pension cost was $1,317,000, $1,303,000, and $1,256,000, which was equal to the required and actual contribution. C. Required Supplementary Information - Schedule of Funding Progress for PERS (Dollar amounts in thousands for the primary government only) NOTE 5: FIXED ASSETS A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1998 follows: July I, 1997 Additions Deductions June 30, 1998 Government Excess Actuarial Actuarial Excess $ - $ 5,397,389 Buildings (deficiency) as a Actuarial value of accrued (deficiency) Funded Covered percentage of valuation assets liability (AAL) of assets ratio payroll covered payroll date (a) (b) (a -b) (a/b) (c) ((a -b) /c) 6/30/95 $ 5,697 $ 5,746 $ (49) 99% $ 2,897 (1.7 %) 6/30/96 6,159 5,894 265 104% 3,042 8.7% 6/30/97 7,988 7,288 700 110% 3,179 22.0% NOTE 5: FIXED ASSETS A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1998 follows: $ 120,635,650 $ 7,553,424 $ 3,665,377 $ 124,523,697 18 July I, 1997 Additions Deductions June 30, 1998 Government Land $ 5,397,389 $ - $ - $ 5,397,389 Buildings 88,300,021 118,004 - 88,418,025 Improvements other than buildings 846,690 11,770 - 858,460 Machinery and equipment 1,423,068 120,384 39,569 1,503,883 Construction work -in- progress 24,668,482 7,303,266 3,625,808 28,345,940 $ 120,635,650 $ 7,553,424 $ 3,665,377 $ 124,523,697 18 The following is a summary of Proprietary Fund fixed assets at June 30, 1998: Internal Enterprise Service Funds Fund Land and improvements $ 32,266 $ - Building and improvement 6,788,691 - Equipment 6,177,412 980,897 Work in process 11,906,168 - 24,904,537 980,897 Less: accumulated depreciation (6,575,685) (593,605) Net fixed assets $ 18,328,852 $ 387,292 Depreciation lives for Proprietary Fund fixed assets are as follows: Building and improvements 15 -50 years Equipment 5 -20 years An expenditure qualifies for capitalization as a fixed asset if the total cost is $500 or more, the asset will last longer than one year, and the asset is not consumable. Improvements to an existing asset that increase the life or value of that asset also qualify for capitalization, and are added to the carrying amount of the original asset. All fixed assets are depreciated over the estimated remaining useful life of the asset on a straight -line basis. The Borough does not capitalize either infrastructure fixed assets or improvement to such. M NOTE 6: LONGTERM DEBT The following is a summary of long -term debt for the year ended June 30, 1998: Interest Principal Payments Issue Maturity Type ol'Debt Rates Dates Date Dates Dates Anwunt Environmental Protection Agency Asbestos Abatement Loan 0.0% * 6/20/85 11/8/05 12/31/98 $ 10,411 06/30 and 12/31 1998 thru 2004 12 x 10,417 General Obligation School Refunding Bonds - 1989 Series 6.6 -8.0% 8/1 -2/1 5/1/89 8/1/00 8/1/98 1,015,000 8/l/99 1,080,000 8/l/00 1,155,000 3,250,000 General Obligation Bonds - 1993 Series 3.90 -7.00% 8/15 -2/15 11/15/93 2/15/06 2/15/99 730,000 2/15/00 760,000 2/15/01 790,000 2/15/02 825,000 2/15/03 860,000 2/15/04 900,000 2/15/05 940,000 2/15/06 980,000 6,785,000 General Obligation Bonds - 1994 Series 5.40 -5.50% 8/15 -2/15 11/15/93 2/15/14 2/15/07 1,030,000 2/15/08 1,085,000 2/15/09 1,145,000 2/15/10 1,205,000 2/15/11 1 ,270,000 2/15/12 1,340,000 2/15/13 1,415,000 2/15/14 1,495,000 9,985,000 Accrued annual leave 0.00% 160,212 State of Alaska ADFC loans 3.92 - 4.05°/ ** ** ** ** 99,698 $ 20,415,325 * Interest free unless delinquent, then 7% plus fees and penalties. ** "I'hese loans represent State of Alaska financial assistance programs, for which no payment schedules will be finalized, or principal payments made, until the plans and specifications for the projects funded have been completed. The loans are in the amounts of $350,000 and $50,000, and are to be repaid from general fund revenues of the Borough, and therefore the debt is reported in the General Long -Term Debt Account Group. Interest begins accruing at the stated rates from the date of each individual disbursement of loan proceeds to the Borough. 20 Authorized Fiscal Year Amount Prior Years Current Year Balance at Issued Retired July 1, 1997 Issued Balance at Retired June 30, 1998 1981 $ 375,000 $ 375,000 $ 218,752 $ 156.248 $ $ 20,833 $ 135,415 1989 10,000,000 10,000.000 5,805,000 4,195,000 945,000 3,250,000 1994 9,215,000 9,215,000 1,735,000 7,480,000 695,000 6,785,000 1994 9,985,000 9,985,000 9,985,000 - - 9,985,000 1998 250,779 186,334 276,901 160,212 1998 400,000 - - - 99,698 - 99,698 $ 29,975,000 $ 29,575,000 $ 7,758,752 $ 22,067,027 $ 286,032 $ 1,937,734 $ 20,415,325 21 $ 2 $ 135,415 $ 28, 940,154 The amount of $432,942 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. NOTE 7: LONG -TERM INTERFUND BORROWINGS In October the Facilities Special Revenue Fund loaned $8,000,000 to the Hospital Facilities Enterprise Fund. The loans from the Facilities Special Revenue Fund is accounted for as a long -term interfund advance, while the liability in the Hospital Facilities Enterprise Fund is accounted for as a long -term interfund borrowing. The interest revenue and interest expense on the debt are reported as operating transfers in /out. The advance bears interest at 7 %, and the scheduled payments for the next five fiscal year and thereafter are as follows: June 30, Principal Interest Total 1999 The annual requirements to amortize all general obligation bonded debt and the EPA loan payable outstanding as of 2000 June 30, 1998, including interest payments of $8,784,739 on the general obligation debt, are as follows: 2001 225,000 General EPA Loan 2002 240,000 ' June 30, Obl igation Paya To tal i 1999 $ 2,780,416 $ 20,833 $ 2,801,249 i 2000 2,774,398 20,833 2,795,231 2001 2,770,663 20,833 2,791,496 2002 1,577,058 20,833 1,597,891 2003 1,576,170 20,833 1,597,003 Thereafter 17,326,034 31,250 17,357,284 i $ 2 $ 135,415 $ 28, 940,154 The amount of $432,942 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. NOTE 7: LONG -TERM INTERFUND BORROWINGS In October the Facilities Special Revenue Fund loaned $8,000,000 to the Hospital Facilities Enterprise Fund. The loans from the Facilities Special Revenue Fund is accounted for as a long -term interfund advance, while the liability in the Hospital Facilities Enterprise Fund is accounted for as a long -term interfund borrowing. The interest revenue and interest expense on the debt are reported as operating transfers in /out. The advance bears interest at 7 %, and the scheduled payments for the next five fiscal year and thereafter are as follows: June 30, Principal Interest Total 1999 $ 195,000 $ 553,175 $ 748,175 2000 210,000 539,000 749,000 2001 225,000 523,775 748,775 2002 240,000 507,500 747,500 2003 255,000 490,175 745,175 Thereafter 6,875,000 4,205,775 11,080,775 $ 8,000,000 $ 6,819,400 $ 14,819,400 NOTE 8: CAPITAL LEASE OBLIGATIONS The Hospital Enterprise Fund leases various equipment under long -term lease agreements at nominal annual interest rates ranging from 6.14 percent to 8.775 percent. The initial cost of such equipment included in fixed assets at June 30, 1998, is approximately $2,446,065. Accumulated amortization on the leased equipment is approximately $820,785 at June 30, 1998. 1 . The minimum required lease payments under the capital leases for the next five years are as follows Fiscal year end June 30, 1998 $ 437,619 1999 437,619 2000 433,124 2001 246,987 Thereafter - Less amount representing interest (169,856) a ►,.)0-)"F 7J NOTE 9: NOTE PAYABLE As of June 30, 1998, the Borough had the following note payable outstanding in an enterprise fund: Note payable to Signet Leasing and Finance Corporation, due in monthly installments of $57,693, including interest (at an effective annual rate of 6.4 %); secured by equipment $ 2,973,652 Less current portion of note payable 523,349 $ 2,450,303 Future required minimum principal payments at June 30, 1998 are as follows: Fiscal year end June 30. 1999 $ 523,349 2000 556,624 2001 592,015 2002 629,656 2003 672,008 $ 2,973,652 NOTE 10: CAPITAL PROJECT FUNDS CONSTRUCTION COMMITMENTS A summary of Capital Projects Funds construction commitments at June 30, 1998 follows: Various Borough Projects $ 986,569 Hospital Bond Improvements 14,500 State Capital Grants 2,063,223 Kodiak Fisheries Research Center 1, $ 4,593,098 Resources are presently available or committed to finance construction commitments at June 30, 1998, for all funds, inclusive of those resources appropriated at year -end. 23 � NOTE 11: ENTERPRISE FUND SEGMENT INFORMATION The Borough owns and operates a Municipal Solid Waste Collection and Disposal Fund, a Hospital Facilities Fund (See Note 18), and a 911 Services Fund. Segment financial data as of and for the year ended June 30, 1998, for those funds are as follows: Municipal Solid Waste Collection and Disposal Operating revenues $ Depreciation expense Operating income (loss) Net income Amortization of contributions in aid of construction Property, plant and equipment additions Net working capital Total assets Total equity Kodiak Hospital Fisheries Facilitie 911 Servic Research Cen Total 2,420,207 $ 807,716 $ 51,270 $ - $ 3,279,193 113,936 583,975 - - 697,911 (50,962) 39,872 (134,506) - (145,596) (50,435) (296,070) (134,506) 173,859 (307,152) 74,239 7,255 344,695 2,615,279 234,298 NOTE 12: DEFERRED COMPENSATION PLAN 74,239 2,182,439 - - 2,189,694 (11,637) (40,914) (246,141) 46,003 9,487,531 10,669 8,000,000 20,113,479 4,970,381 (40,914) (246,141) 4,917,624 Tile Kodiak Island Borough has a deferred compensa- tion plan created and amended in accordance with Internal Revenue Code Section 457. The plan is available to all permanent Borough employees. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. All amounts deferred under this plan are held in a trust that was established for the exclusive benefit of plan participants. Amounts contributed to the plan by participants during the year ended June 30, 1998, was $115,572. The plan is managed by the International City Managers Association Retirement Corporation. The Borough believes that the plan does not meet the criteria in NCGA Statement No. 1, Governmental Accowabig arc! Reporling Principles, for inclusion as a fiduciary fund. NOTE 13: INSURANCE AND RISK RETENTION The Kodiak Island Borough is exposed to numerous risks of loss associated with the operations of a government. These potential losses include, but are not limited to, employee relations and injuries, contracts, theft, loss or damage of property and general liability. The Borough manages its risks from these potential losses by participating in the Alaska Municipal League Joint Insurance Association, as well as purchasing commercial insurance coverage. This insurance has provided the Borough with adequate coverage in the past. There were no significant changes in insurance coverage obtained and there were no claims or settlements that exceeded insurance coverage in any of the past three fiscal years. The Borough is a member of the Alaska Municipal League Joint Insurance Association (JIA), a governmental insurance pool established by the Alaska Municipal League. The JIA provides the Borough coverage for property, including building and contents, automobile, mobile equipment and data processing equipment, casualty, including general liability, public officials and employees liability, auto liability and employee benefit liability; workers' compensation, including employers' liability; commercial blanket bond; and time element. L� 1 24 NOTE 14: INDIVIDUAL FUND DISCLOSURES Interfund Receivables and Payables A summary of interfund receivables and payables at June 30, 1998, is as follows: n ,.,.- General Fund Special Revenue Funds - Kodiak Airport Fire District Womens Bay Fire Department Monashka Bay Road Service Area Road Service District No. 1 Womens Bay Service Area Mental Health Center Coastal Management Child Care Assistance Program Land Sales Building and Grounds Kodiak Arts Council Facilities Fund Kodiak Transit Authority L.E.P.C. Capital Project Funds - Various Borough Projects State Capital Grants School Bond Improvements Kodiak Fisheries Research Center Enterprise Funds - Municipal Solid Waste Collection and Disposal Hospital Facilities 911 Services Kodiak Fisheries Research Center Component Units - School District 235,000 8,505,200 225,000 119,141 290,000 500,000 $ 1,669,638 200 150,000 40,000 35,000 50,000 170,000 20,000 125,000 10,000 25,000 200,000 790,000 13,000 8,246,141 691,110 $ 12,235,089 As of June 30, 1998, the Kodiak Fisheries Research Center Enterprise Fund has borrowed $8.0 million from the Facilities Special Revenue Fund. See Note 8 for additional information regarding the interfund borrowings. 25 Fund Deficits and Accumulated Deficits: The fund deficits and accumulated deficits at June 30, 1998, are as follows: Special Revenue Funds: Mental Health Center Coastal Management Land Sales Kodiak Transit Authority Kodiak Arts Council Buildings and Grounds Capital Projects Funds: School Bond Improvements State Capital Grants Enterprise Fund: Municipal Solid Waste Collection and Disposal Hospital Facilities 911 Services Kodiak Fisheries Research Center Internal Service Fund: Management Information System 79,197 147 73,641 22,053 2,330 171,569 183,252 26,695 1,450,639 177,546 40,914 246,141 Management intends to fund the Special Revenue Funds deficits in fiscal year 1999 through transfers from other funds and fund the deficit in the Enterprise Fund through an increase in service charges. Transfers Interfund operating transfers and transfers from component units have been made in accordance with budget ordinances. Funds are transferred from one fund to support expenditures of other funds in accordance with the authority established for the individual fund. Transfers between fund types and component units during the year ended June 30, 1998, were as follows: 26 Transfers In School Special Debt Capital District Transfers General Revenue Service Projects Enterprise Component Fund Types Out Fund Funds Funds Funds Funds Unit General Fund $ 7,596,282 $ $ 637,475 $ 1,033,907 $ 1,120,900 $ $ 4,804,000 Special Revenue Funds 609,001 - - 609,001 - Debt Service Funds 113,105 113,105 - - Capital Projects Funds 1,360,000 - 1,300,000 60,000 Enterprise Funds 420,000 420,000 - - Component Unit Hospital - - - School District 1,651,332 1,651,332 - Total Transfers $ 11,749,720 $ $ 1,170,580 $ 2,685,239 $ 1,729,901 $ 1,300,000 $ 4,864,000 26 Excess of Expenditures Over Appropriations General Fund The following departments' expenditures exceeded their appropriations Department Excess Borough mayor $ 564 Borough clerk 2,829 Borough attorney 1,017 Borough engineering& facilities department 86 Building official 3,219 Economic development 251 School district support 328,791 Education, culture and recreation 4,000 $ 340,757 Special Revenue Funds The following funds' expenditures exceeded their appropriations: Fund Excess Kodiak Airport Fire District $ 144 Bay View Road Service Area 2,323 Buildings and Grounds 4,761 Kodiak Transit Authority 223,089 $ 230,317 Proprietary Funds' reconciliation of contributed capital for the year ended June 30, 1998, is as follows: Enterpris Funds Municipal Solid Internal Waste Collection Hospital Service and Disposal Facilities Fund Contributed capital at beginning of year $ 1,759,176 $ 4,298,512 $ 617,382 Amortization of contributions in aid of construction (74,239) Contributions in aid of construction received from private sources - 849,415 - Contributed capital at end of year $ 1,684,937 $ 5,147,927 $ 617,382 27 NOTE 15: SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS State and federal laws and regulations require that the Kodiak Island Borough place a final cover on its landfill when closed and perform certain maintenance for a number of years after closure. In addition to operating expenses related to current activities of the landfill, an expense provision and related liability are recognized based on the future closure and postclosure care costs that will be incurred based on the date the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used during the year. The estimated liability of landfill closure and postclosure care costs is $2,200,131 as of June 30, 1998, which is based on 53% usage (filled) of the landfill. The landfill is estimated to be filled and unusable by the year 2001. Of the total liability at June 30, 1998, an increase of $224,284 was recorded in the current year based on current year usage and changes in estimates. An estimated additional $1,914,689 will be recognized as closure and postclosure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity. The estimated total current cost of the landfill closure and postclosure care of $4,115,000 is based on the amount that would be paid if the landfill were closed as of June 30, 1998. However, the actual cost of closure and postclosure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The Kodiak Island Borough is required by state and federal laws and regulations to make annual contributions to finance closure and postclosure care. The Kodiak Island Borough complies with these requirements by annually recording the liability based on the estimates provided by the Kodiak Island Borough's environmental engineer. It is anticipated that future inflation costs and additional costs that might arise from changes in postclosure requirements, due to changes in technology or more rigorous environmental regulations, for example, will be financed primarily by charges to future landfill users and secondarily by taxpayers. NOTE 16: SALE OF SHUYAK ISLAND The Borough entered into an agreement in December 1995 with the Exxon Valdez Oil Spill Trustee Council to sell all of its rights on Shuyak Island for $42 million to the State of Alaska. The Borough received $8 million in fiscal year 1996, and $2,194,266 in fiscal year 1997, and $4,000 in fiscal year 1998, and will receive the balance of the sale in the following payments: October I 1998 4,000,000 1999 4,000,000 2000 4,000,000 2001 4,000,000 2002 11,805,734 $6 million of the proceeds will be used for the construction of the Kodiak Fisheries Research Center. The remainder will be placed into a facility special revenue fund and used for future capital projects. NOTE 17: CONTINGENCIES Litigation 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 believes that all the material risks to which the Borough may be exposed have been adequately insured via joint pool and commercial insurance. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by the grantor agencies. Any disallowed claims, including amounts already collected, would become a liability of the General or other applicable funds. In management's opinion, disallowances, if any, will not be material. 28 NOTE 18: HOSPITAL FACILITIES ENTERPRISE FUND The Kodiak Island Borough Assembly passed an ordinance to cease operations of the Kodiak Island Hospital and Care Center, effective April 20, 1997, and to lease the hospital premise and equipment to Sisters of Providence d.b.a. Providence Alaska Medical Center, who assumed responsibility for the hospital's operations as of April 21, 1997. The lease agreement is effective for a term of ten years from that date and contains provisions for an additional ten -year option. The hospital fixed assets, the lease income, and all other costs relating to the agreement are accounted for by the Borough in the Hospital Enterprise Fund. Under the terms of the agreement, certain assets have been transferred to Providence and certain liabilities assumed by them. The Borough received a down payment of $2,000,000 at the execution of the lease. For accounting purposes this down payment was recorded as consideration for the net assets and liabilities transferred to /assumed by Providence. The agreement with Providence specifies that the Borough shall provide at least $150,000 per year for the purchase of new and replacement equipment for the hospital. The Borough is also required to fund any major maintenance and repairs projects exceeding $10,000 in cost. Additionally, the Borough is responsible for 50% of operating losses of the hospital if any. Should the Borough wish to terminate the lease agreement without cause, the Borough would be required to refund the $2,000,000 down payment on the lease in proportion to the number of years remaining on the ten -year term of the lease, at the rate of $200,000 per year for each remaining year. For accounting purposes such payment would be considered to be a penalty for the early termination of the lease. NOTE 19: SUBSEQUENT EVENT Change in Form of Government At the October 7, 1997, general election, the voters of the Kodiak Island Borough passed an Ordinance that changed the form of government from a mayor plan of government to a manager plan of government. This change will become effective on October 19, 1998. 0 1 29 1 C II GENERAL FUND 1 t 0 The General Fund is used to account for resources traditionally associated with government which are not required legally or by sound financial management to be accounted for in any other fund. Principal sources of revenue are property taxes and intergovern- mental revenues. Primary expenditures are for general government and public service. KODIAK ISLAND BOROUGH GENERAL FUND BALANCE SHEETS AS OF JUNE 30, 1998 AND 1997 EXHIBIT A -I TOTAL $ 3,556,929 $ 3,750,978 31 1998 1997 ASSETS Equity in central treasury $ 667,288 $ 46,299 Temporary investments 2,234,133 3,208,202 Accounts receivable 179,325 210,998 Due from State of Alaska 116,053 66,556 Property taxes: Delinquent taxes 353,855 173,861 Allowance for uncollectible delinquent taxes (15,828) (15,828) Accrued interest 22,103 60,890 TOTAL $ 3,556,929 $ 3,750,978 LIABILITIES AND FUND BALANCE LIABILITIES: Accounts payable $ 181,642 $ 236,780 Payroll taxes and employee benefits 85,054 24,009 Other accrued liabilities 27,066 1,723 Due to the City of Kodiak 24,324 - Due to component units 1,669,638 1,359.525 Due to other funds - 80,000 Total liabilities 1,987,724 1,702,037 FUND BALANCE: Unreserved - designated for subsequent year expenditures 1,569,205 2,048,941 Total fund balance 1,569 205 2,048,941 TOTAL $ 3,556,929 $ 3,750,978 31 KODIAK ISLAND BOROUGH EXHIBIT A -2 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 REVENUES: Property taxes: Real Personal Motor vehicle Penalty and interest Total property taxes Severance taxes: Fish Mining Logging Total severance taxes Intergovernmental: State sources: State Shared Revenue Municipal Assistance Raw Fish Tax Payments in Lieu of Taxes Electric Co -Op Tax Miscellaneous Total state sources Federal sources Payments in Lieu of Taxes Miscellaneous Total federal sources Total intergovernmental revenue Licenses, permits, fees and other local revenues: Building and trailers Subdivision and coning fees Sale of copies Emergency medical services Miscellaneous Total licenses, permits, fees and other local revenues Investments and property: Interest income Total investments and property Total revenues 304,220 304,222 Variance - 331,009 217,240 200,898 Favorable 1997 Budget Actual (Unfavorable) Actual $ 5,308,110 $ 5,309,998 $ 1,888 $ 3,703,967 998,450 986,458 (11,992) 705,701 165,000 202,595 37,595 187,339 160,000 158,848 (1,152) 139,392 6,631,560 6,657,899 26,339 4,736,399 740,000 742,952 2,952 566,243 9,250 9,342 92 7,360 323,750 179,401 (144,349) 272,035 1,073,000 931,695 (141,305) 845,638 304,220 304,222 2 331,009 217,240 200,898 (16,342) 231,102 989,760 994,768 5,008 1,349,834 16,000 18,866 2,866 16,387 8,000 11,567 3,567 10,622 300 - (300) 152 1,535,520 1,530,321 (5,1 1,939,106 450,000 433,50.1 (16,496) 456,929 830,200 775,250 (54,950) 237 1,280,200 1,208,754 (71,446) 457,166 2,815,720 40,000 5,500 2,070 33,000 491,520 440,000 2,739,075 60,686 6,205 932 30,156 (76,645) 2,396,272 20,686 33,882 705 2,830 (1,138) 2,008 (2,844) 37,871 195,425 (296,095) 108,483 389,252 (50,7-48) (538,454) 371,41-4 11,451,800 10,913,3 8,458,206 (ContAufect) 32 KODIAK ISLAN BOROUGH GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparati totals for 1997) EXHIBIT A -2, continued EXPENDITURES: Borough assembly Borough mayor Borough clerk Borough attorney Finance department Assessing department Borough engineering & facilities department Community development department Building official Economic development General and administration Emergency preparedness School district support Health and sanitation department Education, culture and recreation Total expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES (USES): Operating transfers in from other funds Operating transfers to other funds Operating transfers to component unit Total financing uses Excess (deficiency) of revenues and transfers in over expenditures and transfers out FUND BALANCE, at beginning of year FUND BALANCE, at end of year $ 1,569,205 $ 2,048,941 3 3 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual $ 133,560 $ 129,212 $ 4,348 $ 110,699 199,430 199,994 (564) 194,574 279,940 282,769 (2,829) 273,955 190,000 191,017 (1,017) 125,258 655,000 606,413 48,587 560,870 313,710 295,230 18,480 323,492 - 86 (86) - 430,500 424,789 5,711 423,769 95,770 98,989 (3,219) 83,920 68,000 68,251 (251) 71,684 313,110 307,976 5,134 323,143 5,500 2,366 3,134 4,410 273,875 602,666 (328,791) 263,472 463,810 408,742 55,068 585,806 174,300 178,300 (4,000) 163,300 3,596,505 3,796,800 (200,295) 3,508,352 7,855,295 7,116,546 (738,7.19) 4,949,854 - - 9,672 (2,786,775) (2,792,282) (5,507) (1,887,810) (4,804,000) (4,804,000) (3,995,000) (7,590,775) (7,596,282) (5,507) (5,873,138) $ 264,520 (479,736) $ (744,256) (923,284) $ 1,569,205 $ 2,048,941 3 3 KODIAK ISLAND BOROUGH EXHIBIT'A -3 GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 (continued) 34 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual EXPENDITURES: Borough assembly: Personnel services $ 16,800 $ 16,800 $ - $ 16,800 Fringe benefits 1,160 1,838 (678) 1,855 Support goods and services 55,600 50,371 5,229 41,352 Political lobbyist 60,000 60,203 (203) 50,692 Total 133,560 129,212 4,348 110,699 Borough mayor: Personnel services 120,580 124,868 (4,288) 123,487 Fringe benefits 36,620 35,306 1,314 36,810 Support goods and services 42,230 39,820 2,410 34,277 Total 199,430 199,994 (564) 194,574 Borough clerk: Personnel services 137,310 147,451 (10,141) 132,776 Fringe benefits 44,090 40,189 3,901 43,303 Support goods and services 98,540 91,542 6,998 97,876 Capital outlay - 3,587 (3,587) - Total 279,940 282,769 (2,829) 273,955 Borough attorney: Legal fees 150,000 152,223 (2,223) 92,063 Support goods and services 40,000 38,794 1,206 33,195 Total 190,000 191,017 (1,017) 125,258 Finance department: Personnel services 385,710 367,550 18,160 369,296 Fringe benefits 115,880 101,257 14,623 117,945 Support goods and services 212,850 206,552 6,298 155,338 Capital outlay 2,500 8,072 (5,572) 8,601 Allocated to projects (61,940) (77,018) 15,078 (90,310) Total 655,000 606,413 48,587 560,870 Assessing department. Personnel services 211,990 209,078 2,912 210,231 Fringe benefits 60,950 52,075 8,875 62,026 Support goods and services 66,770 60,077 6,693 47,291 Capital outlay - - - 7,944 Allocated to projects (26,000) (26,000) - (4,000) Total 313,710 295,230 18,480 323,492 (continued) 34 KODIAK ISLAND BOROUGH EXHIBIT A -3, continued GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 (conlin:rc(l) 35 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual Borough engineering and facilities department: Personnel services $ 147,260 $ 89,675 $ 57,585 $ 144,488 Fringe benefits 41,140 21,524 19,616 41,703 Contracted services 5,000 - 5,000 4,414 Support goods and services 80,750 73,192 7,558 66,380 Capital outlay 2,000 - 2,000 1,350 Allocated to projects (276,150) (184,305) (91,845) (258,335) Total - 86 (86) - Community development department: Personnel services 288,935 288,067 868 301,972 Fringe benefits 80,850 73,398 7,452 89,033 Contracted services 150 150 - - Support goods and services 74,950 77,654 (2,704) 66,603 Capital outlay 615 520 95 4,653 Allocated to projects (15,000) (15,000) - (38,492) Total 430,500 424,789 5,711 423,769 Building official: Contracted services 90,900 93,934 (3,034) 79,343 Support goods and services 4,870 5,055 (185) 4,577 Total 95,770 98,989 (3,219) 83,920 Economic development: General services: Personnel services - 120 (120) 40 Fringe benefits - 35 (35) 26 Contracted services 16,000 16,096 (96) 20,851 Support goods and services - - - 767 Contributions: City of Kodiak 14,000 14,000 - Alaska Ocean Seas & Fisheries 5,000 5,000 - Kodiak Chamber of Commerce 33,000 33,000 30,000 Kodiak Convention Bureau - - - 20,000 Total 68,000 68,251 (251) 71,684 General and administration: Personnel services 46,060 46,592 (532) 37,692 Fringe benefits 52,860 76,807 (23,947) 65,970 Professional fees 106,400 83,526 22,874 111,391 Support goods and services 107,790 101,051 6,739 108,090 Total )13,110 307,976 5,134 323,143 (conlin:rc(l) 35 KODIAK ISLAND BOROUGH GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) EXHIBIT A -3, continued Emergency preparedness: Support goods and services Capital outlay Total School district support: Data processing Mental health services Audit expense Support goods and services Total Health and sanitation department: Emergency Medical Services Animal Control Council on Alcoholism State Health Services Villages State Health Services KANA Women's Resource Crisis Center American Red Cross Kodiak Baptist Mission Small World (Day Care) Special Olympics Health Center Support Senior Citizen Support Kodiak Respite Care Rainbow Child Care Center Salvation Army Brother Francis Shelter City Prisoners Hospital Care Emergency Travel Data Processing Ambulance Service 'Dotal 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual $ 5,500 $ 2,366 $ 3,134 $ 3,115 - - - 1,295 5,500 2,366 3,134 4,410 - 315,530 (315,530) 198,340 198,875 199,800 (925) - 35,000 40,619 (5,619) 28,136 40,000 46,717 (6,717) 36,996 273,875 602,666 (328,791) 263,472 32,450 30,156 2,294 30,665 48,000 48,000 - 60,500 43,690 43,007 683 44,041 11,770 13,584 (1,814) 14,656 4,280 4,528 (248) 4,885 41,250 40,926 324 41,417 3,000 3,000 - 3,000 45,360 44,480 880 45,8" 18,000 18,000 - 18,000 7,000 7,000 - 7,000 2,000 2,061 (61) 2,000 24,000 24,000 - 24,000 5,000 5,000 - 5,000 2,500 2,500 - 2,500 7,500 7,500 - 7,500 20,000 20,000 - 20,000 - - - 50,000 2,000 - 2,000 - 51,010 - 51,010 109,820 `fUJ,01 V - iVO, /`1 .JJ,VVO - (Colon (ecl) 36 KODIAK ISLAND BOROUGH EXHIBIT A -3, continued GENERAL FUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 Education, culture and recreation: KMX'I' Public Radio Historical Society Summer Basketball Crime Stoppers Kodiak Island Sportsman Association Kodiak Art Council Village Libraries Chiniak Public Library City of Kodiak Library Head Start Kodiak College Kodiak Little League Santa to the Villages Karluk IRA Council KANA Youth Olympics KANA Family Center Kodiak Youth Services Network Alaska Future Leaders Total Total expenditures OTHER FINANCING SOURCES (USES): Operating transfers out to other fluids: Special revenue funds: Mental health Center Day Care Assistance Building and Grounds Debt service funds: Schools Other Capital projects funds: Various 1301 - 0ug11 projects State grant - funded projects Total operating transfers out I /4,3UU I /8,3UU Variance - 163,300 3,596,505 3,796,800 Favorable 1997 Budget Actual (Unfavorable) Actual $ 15,000 $ 15,000 $ $ 15,000 9,000 9,000 - 9,000 5,000 5,000 - 5,000 2,000 6,000 (4,000) - 2 ,000 2,000 - 2,000 14,000 14,000 - 14,000 18,000 18,000 - 18,000 3,000 3,000 - 3,000 3,000 3,000 - 3,000 8,000 8,000 - 8,000 45,000 45,000 - 34,000 5,000 5,000 - 5,000 2,300 2,300 - 2,300 20,000 20,000 - 20,000 2,000 2,000 - 2,000 16,000 16,000 - 16,000 5,000 5,000 - 5,000 ... I /4,3UU I /8,3UU (4,000) 163,300 3,596,505 3,796,800 (200295) 3,508,352 ° I9MIS (439,445) (439,445) - (516,420) (3,000) (3,000) (195,030) (195,030) - (186,110) (1,019,400) (1,019,400) (935,280) (9,000) (14,507) (5,507) - (1,103,400) (1,103,400) (250,000) (17,500) (17,500) - - (2,786,775) (2,792,282) (5,507) (1,887,810) (( 37 KODIAK ISLAND BOROUGH EXHIBIT A -3, continued GENERALFUND SCHEDULE OF EXPENDITURES AND TRANSFERS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 38 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual Operating transfers to component units: Kodiak Island Borough School District (4,804,000) (4,804,000) - (3,995,000) Total operating transfers out (7,590,775) (7,596,282) (5,507) (5,882,810) Total financing uses (7,590,775) (7,596,282) (5,507) (5,882,810) Total expenditures and transfers $ 11,187,280 $ 11,393,082 $ (205,802) $ 9,391,162 38 1 1 1 I F, t 1 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues from specific sources which by law are restricted to finance particular func- tions and activities. KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET AS OF JUNE 30, 1998 (with comparative totals for 1997) ASSETS Equity in central treasury Temporary investments Receivables: State of Alaska Land sales contracts, due within one year Accrued interest Other Allowance for doubtful receivables Due from other funds Prepaid expenditures Long -term interfund advances Land sale contracts, due after one year TOTAL LIABILITIES AND FUND BALANCES LIABILITIES: ACUUntS payable Employee benefits accrued and withheld Customer deposits Deferred revenues Due to other funds Total liabilities FUND BALANCES (DEFICITS): Unreserved: Undesignated Total fund balances TOTAL Fire and Road Service Areas F ire oa Fire Womens Kodiak Monashka Bay Protection Bay Fire Airport Road Service Area No. I Department Fire District Area $ 333,330 $ 117,931 $ 138 $ 80,239 8,236 1,749 2,544 592 3,125 4,479 - - $ 344,691 $ 124,159 $ 2,682 $ 80,831 $ 24,123 $ 1,996 $ - $ 3,586 240 - - - 275 - - - - 200 - 24,363 2,271 200 3,586 320,328 121,888 2,482 77,245 320,328 121,888 2,482 77,245 $ 344,691 $ 124,159 $ 2,682 $ 80,831 40 EXHIBIT B -1 Federal and State Grant Programs R Service Womens Bay View Service Mental Child Care District Bay Service Road Service Area I lealth Coastal Assistance No. I Area Area No. 2 Center Management Program Land Sales $ 21,031 $ 122,603 $ 4,259 $ 3,338 $ 17,051 $ 8,733 $ 5,479 $ 3,811 - - - - 53,957 31,120 87,454 - - - - - - - 81,636 11,285 2,732 - - 68,214 - - - - - - - (68,213) - - (25,000) 235,000 - - - - - - - - - - - - - - 195 - - - - - - - 196,396 $ 267,316 $ 125,335 $ 4,259 $ 3,338 $ 71,009 $ 39,853 $ 92,933 $ 257,038 $ 770 $ 2,230 $ $ $ 206 $ - $ 48,791 $ 18 - - - - - 1,274 - - - 279,387 - - - - 150,000 40,000 35,000 50,000 770 2,230 - - 150,206 40,000 83,791 330,679 266,546 123,105 4,259 3,338 (79,197) (147) 9,142 (73,641) 266,546 123,105 4,259 3,338 (79,197) (147) 9,142 (73,641) $ 267,316 $ 125,335 $ 4,259 $ 3,338 $ 71,009 $ 39,853 $ 92,933 $ 257,038 continued 41 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET AS OF JUNE 30, 1998 (with comparative totals fo 1997) Woodland Buildings Acres Street Kodiak and Light Service Arts Grounds Area Council Facilities ASSETS Equity in central treasury Temporary investments Receivables: State of Alaska Land sales contracts, due within one year Accrued interest Other Allowance for doubtful receivables Due from other funds Prepaid expenditures Loner term interfund advances Land sale contracts, due after one year TOTAL LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable Employee benefits accrued and withheld Customer deposits Deferred revenues Due to other funds Total liabilities FUND BALANCES (DEFICITS): Unreserved: Undesignated Total fund balances TOTAL $ 9,729 $ 47,606 $ 7,233 $ 243,696 190 10,437 - 505,200 - - 8,000,000 $ 9,729 $ 47,796 $ 17,670 $ 8,748,896 $ 11,298 $ 417 $ 170,000 - 20,000 - 181,298 417 20,000 - (171,569) 47,379 (2,330) 8,748,896 (171,569) 47,379 (2,330) 8,748,896 $ 9,729 $ 47,796 $ 17,670 $ 8,748,896 42 EXHIBIT B -1, continued Kodiak Tourism Transit Development Authority L.E.P.0 Totals 1998 1997 $ 8,574 $ 5,730 $ 3,956 $ 1,044,467 $ - 120,777 25,400 318,708 - - - 81,636 10,757 78,174 - 194,910 - - - (93,213) - - - 740,200 - - - 7,799 - - - 8,000,000 - - - 196,396 $ 19,331 $ 204,681 $ 29,356 $ 10,490,903 $ 226,369 4,850,505 192,830 188,233 57,122 96,652 (25,000) 715,000 7,606 263,713 6,573,030 $ - $ 101,734 $ 19,356 $ 214,525 $ 144,612 - - 1,514 21,730 25 - - 300 675 - - - 279,387 393,602 125,000 10,000 600,200 960,000 25 226,734 29,356 1,095,926 1,520,619 19,306 (22,053) - 9,394,977 5,052,411 19,306 (22,053) - 9,394,977 5,052,411 $ 19,331 $ 204,681 $ 29,356 $ 10,490,903 $ 6,573,030 43 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) Fire and Road Service Areas Fire Ro ad 44 Fire Womens Kodiak Monashka Bay Service Womens Protection Bay Fire Airport Road Service District Bay Service Area No. 1 Department Fire District Area No. I Area REVENUES: Property taxes $ 222,767 $ 44,178 $ 14,339 $ 19,692 $ 90,429 $ 66,926 State sources 20,530 542 - 1,690 9,166 8,816 Federal sources 2,586 - - 3,071 - Land sale proceeds - - - - Licenses, permits. fees and other local revenues 5,348 9,012 - - - 20,000 Investments and property 43,543 6,201 287 4,126 18,939 8,227 Total revenues 294,774 59,933 14,626 25,508 121.605 103,969 EXPENDITURES: Community development department - - - - - - General and administration 243,035 32,970 12,144 I lealth and sanitation department - - - - Capital outlay: Services district maintenance - - - 17,258 143,578 109,370 Total expenditures 243,035 32,970 12,144 17,258 143,578 109,370 Fxcess (deficiency) of revenues over(Under)expenditures 51,739 26,963 2.482 8.250 (21,973) (5,401) OTHER FINANCING SOURCES (USES): Operating transfers in from other funds 11,198 - - - Operating transfers out to other funds (400,000) (25 -820) Net other Imancing sources (uses) (388,802) (25.820) Excess (deficiency) of revenues and other l in M611e sources over (Under) expenditures and other fioaucing u,es (337,003) 26,963 2,482 8.250 (47.793) (5,4011 FUND BALANCES (DEFICITS), at beginning ofyear 657,391 94,925 - 68,995 314,339 128.506 FUND BALANCES (DEFICITS), at end of year $ 320,328 $ 121,888 $ 2,482 $ 77.245 $ 266546 $ 123,105 44 EXHIBIT B -2 (1.707) 173 •10.1,75 -1 (6) 3.528 21,130 (4- 1,179) 7,47-1 6.026 3,165 (483,951) (141) 5.614 (94,771) (127.390) 39,905 $ 4.259 $ 3,338 $ (79.197) $ (147) $ 9.142 $ (73.641) $ (171,569) $ 47.379 (co�+liirurdl 45 State Grant Programs Road Woodland Bay View Service Mental Child Care Buildings Acres Street Road Service Area Health Coastal Assistance and Light Service Area No. 2 Center Management Program Land Sales Grounds Area $ 4,797 $ - $ - $ - $ - $ - $ - $ 9,821 733 532,863 31,120 375,182 157 - 148,612 - - 382,287 55,484 - - 376 173 1,333 - - 357,643 2,486 5.906 173 916,483 31,120 375,182 204,096 357.643 12,464 - - - 31,126 - - - - - - - 184,286 597,351 4,990 - 1,051,262 374,654 - - - 7,673 - - - - 7.673 - 1,051,262 31,126 374,654 184,286 597,351 4,990 (1.767) 173 (134,779) (6) 528 19,810 (239,708) 7, 474 - 539.533 - 3.000 - 195.030 - - - 1,320 499 539.533 3.000 1.320 195.529 (1.707) 173 •10.1,75 -1 (6) 3.528 21,130 (4- 1,179) 7,47-1 6.026 3,165 (483,951) (141) 5.614 (94,771) (127.390) 39,905 $ 4.259 $ 3,338 $ (79.197) $ (147) $ 9.142 $ (73.641) $ (171,569) $ 47.379 (co�+liirurdl 45 KODIAK ISLAN BOROUGH EXHIBIT B -2, continued SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) Kodiak Kodiak Totals Arts Tourism Transit Council Facilities Development Authority L.E.P.C. 1998 1997 REVENUES: Property taxes $ $ State sources Federal sources Land sale proceeds - 4,000,000 Licenses, permits, fees and other local revenues 66,028 - Investments and property - 85,398 Total revenues 66,028 4,085,398 EXPENDITURES: Community development department - - General and administration 68,358 Health and sanitation department - Capital outlay: Services district maintenance - Total expenditures 68,358 - Excess (deficiency) of revenues over (under) expenditures (2.330) 4.085,398 011IER FINANCING SOURCES (USES): Operating transfers in from other funds 420,000 Operating transfers out to other funds (185,000 Net other financing sources (uses) 235,000 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (2,330) 4,320,398 FUND BALANCES (DEFICITS), at beginning ol'year FUND BALANCES (DEFICITS), at end of year $ $ - $ - $ 472,949 $ 557,626 150,685 25,400 1,156,884 969,951 - - 5,657 5,233 - 4,148.612 2,459,762 37,273 88,552 663,984 1.067,294 - - 528,732 626,073 37,273 239,237 25,400 6,976,818 5,685,939 29,267 - - 60,393 80,278 - 261,290 25,400 1,429,824 1,150,057 - - 1,425,916 2,309,959 - - - 277,879 287,636 29,267 261,290 25,400 3.194.012 1827.930 8.006 (22.053) - 3.782.806 1.858,009 1.168,761 723A43 (609,001) (324,665) 559,760 398.778 8,006 (22,053) 4341566 2,256,787 5.052.41 1 2,795,624 $ 9.394,977 $ 5.052.411 46 4,428,498 11,300 $ (2.330) $ 8,748,896 $ 19,306 $ (22,053) $ KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS -FIRE PROTECTION AREA NO. 1 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) EXHIBIT B -3 EXPENDITURES: General and administration: Fire chief Volunteers Fringe benefits Contracted services Support goods and services Capital outlay Depreciation Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers in (out) to other funds: Debt Service - Other Capital Projects - Borough Projects Net other financing sources (uses) Excess (deficiency) of revenues and other financing Sources over (under) expenditures and other financing uses FUND BALANCE, at beginning of year FUND BALANCE, at end of year 64,000 74,947 1998 77,838 15,000 7,700 7,300 9,480 Variance - 64,227 (41,127) 23,264 19,400 Favorable 1997 309 Budget Actual (Unfavorable) Actual REVENUES: 14,978 55,022 1,500 15,000 Property taxes $ 209,000 $ 222,767 $ 13,767 $ 210,892 State sources - Shared revenue 15,000 20,530 5,530 17,592 Federal sources - Payment in lieu of taxes 2,500 2,586 86 2,243 Licenses, permits, fees and other local revenues - 5,348 5,348 6,000 Investments and property 10,000 43,543 33,543 34,236 Total revenues 236,500 294,774 58,274 270,963 EXPENDITURES: General and administration: Fire chief Volunteers Fringe benefits Contracted services Support goods and services Capital outlay Depreciation Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES): Operating transfers in (out) to other funds: Debt Service - Other Capital Projects - Borough Projects Net other financing sources (uses) Excess (deficiency) of revenues and other financing Sources over (under) expenditures and other financing uses FUND BALANCE, at beginning of year FUND BALANCE, at end of year 64,000 74,947 (10,947) 77,838 15,000 7,700 7,300 9,480 23,100 64,227 (41,127) 23,264 19,400 2,925 16,475 309 183,000 78,258 104,742 67,774 70,000 14,978 55,022 1,500 15,000 - 15,000 - 389,500 243,035 146,465 180,165 (1 53,000) 51,739 204,739 90,798 11,198 11,198 (1,420) (400,000) (400,000) - (400,000) (388,802) 11,198 (1,420) $ (553,000) (337,063) $ 215,937 89,378 657,391 568,013 $ 320,328 S 657,391 47 KODIAK ISLAND BOROUGH EXHIBIT B -4 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS- WOMENS BAY FIRE DEPARTMENT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 REVENUES: Property taxes State sources - Shared revenue Licenses, permits, fees and other local revenues Investments and property Total revenues EXPENDITURES: General and administration: Personnel services Contracted services Fringe benefits Support goods and services Capital outlay Total expenditures Excess of revenues over expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year - - Variance - - 300 Favorable Budget Actual (Unfavorable) $ 43,800 $ 44,178 $ 378 $ 590 542 (48) 9,000 9,012 12 3,000 6,201 3,201 1997 43,657 2,702 9,050 1,700 - 1,700 - 300 - 300 - 3,000 - 3,000 - 45,530 31,247 14,283 34,939 5,860 1,723 4,137 1,004 56,390 32,970 23,420 35,943 $ - 26,963 $ 26,963 24,570 $ 121,888 $ 94,925 48 KODIAK ISLAND BOROUGH EXHIBIT B -5 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS- KODIAK AIRPORT FIRE DISTRICT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 49 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual REVENUES: Property taxes $ 12,000 $ 14,339 $ 2,339 $ - Investments and property - 28 7 287 _ Total revenues 12,000 14,626 2,626 - EXPENDITURES: General and administration: Contracted services 12,000 12,087 (87) - Support goods and services - 57 (57) - Total expenditures 12,000 12,144 (144) - Excess of revenues over expenditures $ - 2,482 $ 2,482 - FUND BALANCE, at beginning of year - - FUND BALANCE, at end of year $ 2,482 $ _ 49 KODIAK ISLAND BOROUGH EXHIBIT B -6 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - MONASHKA BAY ROAD SERVICE AREA STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 901 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual REVENUES: Property taxes $ 19,620 $ 19,692 $ 72 $ 19,612 State sources - Shared revenue 1,410 1,690 280 1,762 Investments and property 2,120 4,126 2,006 3,724 Total revenues 23,150 25,508 2,358 25,098 EXPENDITURES: Capital outlay: Service district maintenance: Personnel services 500 - 500 210 Snow removal /sanding 12,000 6,614 5,386 7,044 Road grading /ditching 8,500 10,470 (1,970) 3,438 Repairs and maintenance 1,500 57 1,443 - Support goods and services 650 ill 533 288 Total expenditures 23,150 17,258 5,892 10,980 Excess of revenues over expenditures $ - 8,250 $ 8,250 14,118 FUND BALANCE, at beginning of year 68,995 54 FUND BALANCE, at end of year $ 77,245 $ 68,995 901 KODIAK ISLAND BOROUGH EXHIBIT B -7 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - SERVICE DISTRICT NO. 1 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 51 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual REVENUES: Property taxes $ 85,000 $ 90,429 $ 5,429 $ 200,079 State sources - Shared Revenue 8,000 9,166 1,166 8,018 Federal sources - Payment in lieu of taxes 3,000 3,071 71 2,990 Investments and property - 18,939 18,939 25,614 Total revenues 96,000 121,605 25,605 236,701 EXPENDITURES: Capital outlay: Service district maintenance: Personnel services 7,050 3,655 3,395 8,310 Repairs and maintenance 100,000 71,297 28,703 46,019 Snow removal /sanding 75,000 47,607 27,393 54,392 Road grading /ditching 50,000 19,815 30,185 11,638 Support goods and services 1,900 1,204 696 1,819 Total expenditures 233,950 143,578 90,372 122,178 Excess of revenues over expenditures (137,950) (21,973) 1 15,977 114,523 OTHER FINANCING USES: Operating transfers out to other funds: Capital Projects - 13orough projects (25.820) (25,820) - (220,160) Total other financing uses (25,820) (25,820) - (220,160) Deficiency of revenues under expenditures and other financing uses $ (163,770) (47,793) $ 115,977 (105,637) FUND BALANCE, at beginning of year 314,339 419,976 FUND BALANCE, at end of year $ 266,546 $ 314,339 51 KODI ISLAND BOROUGH EXHIBIT B -8 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS - WOMENS BAY SERVICE AREA STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 REVENUES: Property taxes State sources - Shared revenue Licenses, permits, fees and other local revenues Investments and property Total revenues EXPENDITURES: Capital outlay: Service district maintenance: Personnel services Snow removal /sanding Road grading /ditching Repairs and maintenance Service district maintenance Total expenditures Deficiency of revenues Under expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year 1997 70,079 9,459 20,000 110,913 3,430 353 Variance - 1,698 40,700 Favorable Budget Actual (Unfavorable) _ $ 70,080 $ 66,926 S (3,154) $ 10,000 8,816 (1,184) 20,000 20,000 - 11,500 8,227 (3,273) 111,580 103,969 (7,611) 1997 70,079 9,459 20,000 110,913 3,430 353 3,077 1,698 40,700 40,670 30 30,180 32,150 24,713 7,437 41,802 43,200 43,053 147 77,407 2,100 581 1,519 915 121,580 109,370 12,210 152,002 $ (10,000) (5,401) $ 4,599 (41,089) $ 123,105 $ 128,506 52 KODIAK ISLAND BOROUGH EXHIBIT B -9 SPECIAL REVENUE FUNDS FIRE AND ROAD SERVICE AREAS -BAY VIEW ROAD SERVICE AREA STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 REVENUES: Property taxes State sources - Shared revenue Investments and property Total revenues EXPENDITURES: Capital outlay: Service district maintenance: Personnel services Snow removal /sanding Road grading/ditching Repairs and maintenance Support goods and services "Total expenditures Excess (deficiency) of revenues over (under) expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year - 72 Variance - 98 2,350 3,852 Favorable 1997 Budget Actual (Unfavorable) Actual $ 4,450 $ 4,797 $ 347 $ 4,473 700 733 33 784 200 376 176 330 5,350 5,906 556 5,587 - 72 (72) 98 2,350 3,852 (1,502) 1,724 2,000 2,728 (728) - 1,000 995 5 598 - 26 (26) 56 5.350 7.673 (2,323) 2,476 S - (1,767) $ (1,767) 3,111 ',915 $ 4,259 $ 6,026 53 KODIAK ISLAND BOROUGH EXHIBIT B -10 SPECIAL REVENUE FUNDS SERVICE AREA NO. 2 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 REVENUES: Investments and property Total revenues EXPENDITURES: Capital outlay: Service district maintenance: Total expenditures Excess (deficiency) of revenues over (under) expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year Budget 500 500 $ (500) 54 Variance - Favorable 1997 Actual (Unfavorable) Actual 173 173 169 - 500 - - 500 - 173 $ 673 3,165 169 $ 3,338 $ 3,165 KODIAK ISLAND BOROUGH SPECIAL REVENUE FUNDS MENTAL HEALTH CENTER STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) EXHIBIT B -11 1998 REVENUES: State sources: Health, Social and Community Services Program Licenses, permits, fees and other local revenues: Net individual and organization user fees Investments and property: Rental fees Interest Total revenues EXPENDITURES: Health and sanitation department: Mental health program: Personnel services Travel Facility Supplies Equipment Capital outlay Other Total expenditures Deficiency of revenues under expenditures OTHER FINANCING SOURCES: Operating transfers in from other funds: General fund Debt Service - Other Net other financing sources Excess (deficiency) of revenues and other financing sources over (under) expenditures FUND DEFICIT, at beginning of year FUND DEFICIT, at end of year 1,448,321 814,020 variance- 1,472,201 31,270 21,361 Favorable 1997 Budget Actual (Unfavorable) Actual $ 572,706 $ 532,863 $ (39,843) $ 535,279 1,058,180 382,287 (675,893) 850,718 - 1,166 1,166 159 200 167 (33) 284 1,631,086 916,483 (714,603) 1,386,440 1,448,321 814,020 634,301 1,472,201 31,270 21,361 9,909 27,829 66,660 28,452 38,208 19,742 25,800 5,758 20,042 17,8;0 16,700 6,959 9,741 9,685 14,000 - 14,000 508 267,405 174,712 92,6 - 1- 17,82s 1,870,156 1,051,262 818,894 1,995,620 (239,070) (134,779) 104,291 (609,180) 2.10,570 439,445 198,375 516,•120 - 100,088 100,088 913 2.10,570 539,533 298,963 517,333 $ 1,500 404,754 $ 403,254 (91,847) (483,951) (392,104) $ (79,197) $ (483,951) 55 KODIAK ISLAND BOROUGH EXHIBIT B -12 SPECIAL REVENUE FUNDS COASTAL MANAGEMENT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 REVENUES: State sources - Grants Total revenues EXPENDITURES: Community development department CMG Special Planning and zoning Total expenditures Deficiency of revenues under expenditures FUND DEFICIT, at beginning of year FUND DEFICIT, at end of year Variance - Favorable 1997 Budget Actual (Unfavorable) Actual $ 38,120 $ 31,120 $ (7,000) $ 80,159 38,120 31,120 (7,000) 80,159 12,000 5,000 7,000 49,159 26,120 26,126 (6) 31,119 38,120 31,126 6,994 80,278 $ - (6) $ (6) (119) (141) (22) $ (147) $ (141) 56 KODIAK ISLAND BOROUGH EXHIBIT B -13 SPECIAL REVENUE FUNDS CHILD CARE ASSISTANCE PROGRAM STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 REVENUES: State sources - Grants Total revenues EXPENDITURES: Health and sanitation department: Day care payments Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES: Operating transfers in from other fund: General Fund Excess (deficiency) of revenues and other financing sources over (under) expenditures FUND BALANCE, at beginning of year F1IND BALANCE, at end of year Variance - Favorable 1997 Budget Actual (Unfavorable) Actual $ 414,171 $ 375,182 $ (38,989) $ 314,059 414,171 375,182 (38,989) 314,059 417,171 374,654 42,517 314,339 417,171 374,654 42,517 314,339 (3,000) 528 3,528 (280) 3,000 3,000 - - $ - 3,528 $ 3,528 (280) 5,614 5,894 $ 9,142 $ 5,6 i •1 57 KODIAK ISLAND BOROUGH EXHIBIT B -14 SPECIAL REVENUE FUNDS LAND SALES STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 REVENUES: Land sale proceeds Licenses, permits, fees and other local revenues: Gravel sales Other Investments and property Total revenues EXPENDITURES: General and administration: Personnel services Contracted services Support goods and services Capital outlay Total expenditures Excess of revenues over expenditures OTHER FINANCING SOURCES (USES): Operating transfers in (out) from (to) other funds: Buildings and Grounds Debt Service Other Net other financing sources (uses) Excess of revenues and other financing sources over expenditures and other financing uses FUND DEFICIT, at beginning of year FUND DEFICIT, at end of year Variance - Favorable 1997 Budget Actual (Unfavorable) Actual $ 147,500 $ 148,612 $ 1,112 $ 265,496 40,000 54,614 14,614 99,936 3,020 870 (2,150) 1,080 190,520 204,096 13,576 366,512 134,150 137,763 (3,613) 137,650 9,760 8,857 903 7,383 46,610 36,988 9,622 32,507 - 678 (678) 69,161 190,520 184,286 6,234 246,701 - 19,810 19,810 119,811 - - (20,000) - 1,320 1,320 (1,041) 1,320 1,320 (21,041) $ 21,130 $ 21,130 98,770 (94,771) (193,541) $ (73,641) $ (94,771) 58 KODIAK ISLAND BOROUGH EXHIBIT B -15 SPECIAL REVENUE FUNDS BUILDINGS AND GROUNDS STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 REVENUES: Investments and property: Rental Budget Actual Variance - Favorable 1997 (Unfavorable) Actual Total revenues EXPENDITURES: General and administration: School buildings Borough building Apartments Parks operation and maintenance Total expenditures Deficiency of revenues under expenditures OTHER FINANCING SOURCES (USES): Operating transfers in (out) from (to) other funds: General Fund Land Sales Fund Debt Service Fund Other Net other financing sources Deficiency of revenues and other financing sources under expenditures and other financing uses FUND DEFICIT, at beginning of year FUND DEFICIT, at end of year $ 397,560 $ 357,643 $ (39,917) $ 329,145 114,640 109,820 4,820 115,935 350,070 384,099 (34,029) 336,379 75,420 57,395 18,025 123,208 52,460 46,037 6,423 37,430 592,590 597,351 (4,761) 612,952 44,678 (283,807) 195,030 195,030 186,110 - - - 20,000 499 499 (54 4) 195,030 195,529 499 205,566 $ - (44,179) $ 45,177 (78,241) (127,390) (49,149) $ (171,569) $ (127,390) 59 KODIAK ISLAND BOROUGH EXHIBIT B -16 SPECIAL REVENUE FUNDS WOODLAND ACRES STREET LIGHT SERVICE AREA STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) Excess of revenues over expenditures $ - 7,474 $ 7,474 6,073 FUND BALANCE, at beginning of year 39,905 33,832 FUND BALANCE, at end of year S 47,379 $ 39,905 60 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual REVENUES: Property taxes $ 10,730 $ 9,821 $ (909) 8,834 State sources - Shared revenue 220 157 (63) 137 Investments and property - 2,486 2,486 2,184 Total revenues 10,950 12,464 1,514 11,155 EXPENDITURES: General and administration: Electricity 7,950 4,990 2,960 5,082 Capital outlay 3,000 - 3,000 - Total expenditures 10,950 4,990 5,960 5,082 Excess of revenues over expenditures $ - 7,474 $ 7,474 6,073 FUND BALANCE, at beginning of year 39,905 33,832 FUND BALANCE, at end of year S 47,379 $ 39,905 60 KODIAK ISLAND BOROUGH EXHIBIT B -17 SPECIAL REVENUE FUNDS KODIAK ARTS COUNCIL STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 REVENUES: Licenses, permits, fees and other local services: Reimbursement from Kodiak Arts Council Total revenues EXPENDITURES: General administration: Personnel services Fringe benefits Support goods and services Total expenditures Deficiency of revenues under expenditures FUND BALANCE, at beginning ol'year FUND DEFICIT, at end of year Budget Actual Variance - Favorable 1997 (Unfavorable) Actual $ 74,840 $ 66,028 $ 74,840 66,028 (8,812) $ 69,210 (8,812) 69,210 56,000 52,395 3,605 52,395 17,300 14,695 2,605 16,022 1,540 1,268 272 797 74,840 68,358 6,482 69,214 $ - (2,330) $ (2,330) (4) 4 61 $ (2,330) $ - KODIAK ISLAND BOROUGH EXHIBIT B -18 SPECIAL REVENUE FUNDS FACILITIES STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 REVENUES: Land sale proceeds: Proceeds from the sale of Shuyak Island Investments and property Total revenues EXPENDITURES: General and administration Total expenditures Excess of revenues over expenses OTHER FINANCING SOURCES (USES): Operating transfers in (out) from (to) other funds: Debt Service - Bonds Capital Projects - Borough projects Kodiak Fisheries Research Center Net other financing sources (uses) Excess of revenues and other financing sources over expenditures and other financing uses FUND BALANCE, at beginning ofyear FUND BALANCE, at end of year Variance - Favorable 1997 Budget Actual (Unfavorable) Actual $ 4,000,000 $ 4,000,000 $ - $ 2,194,266 210,710 85,398 (125,312) 213,749 4,210,710 4,085,398 4,210,710 4,085,398 (125,312) 2,408,015 (81,500) (185,000) (185,000) - 420,000 420,000 (185,000) 235,000 420,000 (81,500) $ 4,025,710 4,320,398 $ 294,688 2,326,515 4,428,498 2,101,983 $ 8,748,896 $ 4,428,498 62 KODIAK ISLAND BOROUGH EXHIBIT B -19 SPECIAL REVENUE FUNDS TOURISM DEVELOPMENT STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 199 REVENUES: Licenses, permits, fees and other local revenues Total revenues EXPENDITURES: Community Development: Contributions Support goods and services Total expenditures Excess of revenues over expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year Variance - Favorable 1997 Budget Actual (Unfavorable) Actual 35,000 37,273 $ 2,273 11,300 35,000 37,273 2,273 11,300 34,100 29,100 5,000 900 167 733 35,000 29,267 5,733 $ - 8,006 $ 8,006 11,300 $ 19,306 63 11,300 $ 11,300 KODIAK IS LAND BOROUGH SPECIAL REVENUE FUNDS KODIAK TRANSIT AUTHORITY STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 Budget $ 15,426 $ 20,110 1998 REVENUES: City of Kodiak subsidy State sources - grants Licences, permits, fees and other local revenues Total revenues EXPENDITURES: General and administration: Transportation services Support goods and service Capital outlay Total expenditures Deficiency of revenues over expenditures FUND BALANCE at beginning of year FUND DEFICIT, at end of year EXHIBIT B -20 Variance - Favorable actual (Unfavorable) 73,095 $ 57,670 150,685 130,575 38,201 239,237 201,036 15,222 141,198 (125,976) 8,869 13,148 (4,279) 14,110 106,944 (92,834) 38,201 261,290 (223,099) $ - (22,053) $ (22,053) $ (22,053) 64 KODIAK ISLAND BOROUGH EXHIBIT B -21 SPECIAL REVENUE FUNDS L.E.P.0 STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 1998 REVENUES: State sources: L.E.P.C.grant Total revenues EXPENDITURES: General administration: Contracted services Support goods and services Total expenditures Excess of revenues over expenditures FUND BALANCE, at beginning of year FUND BALANCE, at end of year Variance - Favorable Budget Actual (Unfavorable) 25,400 25,400 - 25,400 20,642 4,758 25,400 25,400 65 J 1 1 J DEBT SERVICE FUNDS C Debt Service Funds are used to account for the payment of principal, interest and related fees on all bonded debt except for special assessment bonded debt accounted for in proprietary funds. 0 d U KODIAK ISLAND BOROUGH EXHIBIT C -3 DEBT SERVICE FUNDS BONDS STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual REVENUES: Investments and property: Interest income Total revenues EXPENDITURES: Debt service: Principal Interest Fiscal agent fees Other Total expenditures Deficiency of revenues under expenditures OTI IER FINANCING SOURCES (USES): Operating transfers out to other funds Operating transfer in from component unit Operating transfers in from other funds Net other financing sources Deficiency of revenues and other financing sources under expenditures and other financing uses FUND BALANCE, at beginning of year FUND BALANCE, at end of year $ 70,000 $ 14,840 $ (55,160) $ 77,132 70,000 14,840 (55,160) 77,132 1,660,840 1,660,833 7 1,565,833 1,139,300 1,139,287 13 1,237,938 5,000 2,079 2,921 2,058 4,700 - 4,700 - 2,809,840 2,802,199 7,641 2,805,829 (2,739,840) (2,787,359) (47,519) (2,728,697) 1,639,570 2,658,970 $ (80,870) - - (1,146,7 12) 1,651,332 11,762 1,658,131 1,019,400 - 1,016,780 2,670,732 11,762 1,528,199 (116,627) $ (35,757) (1,20098) $ 432,942 $ 549,569 69 KODIAK ISLAND BOROUGH EXHIBIT C -4 DEBT SERVICE FUNDS OTHER STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual OTHER FINANCING SOURCES (USES): Operating transfers in from other funds 9,000 14,507 5,507 3,005 Operating transfer out to other funds - (113,105) (113,105) (10,585) Net other financing sources (uses) 9,000 (98,598) (107,598) (7,580) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing sources FUND BALANCE, at beginning of year FUND BALANCE, at end of year $ 9,000 (98,598) $ (107,598) $ 161,721 (7,580) $ 260,319 70 L� CAPITAL PROJECTS FUNDS 1 Capital Projects Funds are used to account for general govern- ment capital projects financed by general obligation bond issues, intergovernmental grants, contributions from other funds and interest income, exclusive of projects financed by proprietary funds. t KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET AS OF JUNE 30, 1998 (with comparative totals for 1997) ' Various School Hospital Borough Bond Bond Projects Improvements Improvements ASSET Equity in central treasury Y $ 697,867 $ 16,748 $ I �_,4__ 2 22 Temporary investments _ _ Receivables: - State of Alaska 2 21,528 - - Federal Government _ Accrued interest - Due from other funds 225,000 - - i TOTAL $ 1,144,395 $ 16,748 $ 152,422 LIABILITIES AND FUND BALANCE LIABILITIES: Accounts payable $ 125,913 $ - $ 98,707 Retainages payable 30,998 _ 2 1, 175 ; Deferred revenue Due to other funds - - 200,000 Total liabilities 156,911 2 00000 119,88? FUND EQUITIES (DEFICIENCIES IN ASSETS): Fund Balances (deficits): Reserved for encumbrances 986,569 - 14,500 Unreserved: Designated lur subsequent Years expenditures - - _ Undesignated 915 (183,252) 18,040 Total fund equities (deficiencies in assets) 987,484 (183,252) 32,540 TOTAL $ 1,14=4,395 $ 16,748 $ 152,42 72 EXHIBIT D -1 Kodiak State Fisheries Capital Totals Research Center Grants 1998 1997 $ 163,818 $ 6,527 $ 1,037,382 $ 108,611 6,003,810 - 6,003,810 4,874,124 - 125,273 346,801 216,172 - - - 661,378 47,660 - 47,660 56,440 119,141 - 344,141 1,740,000 $ 6,334,429 $ 131,800 $ 7,779,794 $ 7,656,725 $ 1,447,837 $ 133,495 $ 1,805,952 $ 1,453,549 738,177 - 790,350 487,372 - - - 24,514 790,000 25,000 1,015,000 770,000 2,976,014 158,495 3,611,302 2,735,435 2,063 223 1,528,805 4,593,097 16,920,146 - - - 16,244 1,295,192 (1,555,500) (424,605) (12,015,100) 3,358 t 5 (26,695) 4,168,492 4,921,290 $ 6,334,429 $ 131,800 $ 7,779,794 $ 7,656,725 73 KODIAK IS LAND BOROUGH CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, TRANSFERS AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) Various School Borough Bond Projects Improvements REVENUES: State sources $ 2,860 $ - Federal sources - Licenses, permits, fees and other local revenues 4,310 Investments and property - Total revenues 7,170 - EXPENDITURES: Capital improvements: Schools 432,090 3,793 General 315,509 - Total expenditures Deficiency of revenues under expenditures (740,429) (3,793) OTHER FINANCING SOURCES (USES): Operating transfers in from other funds 1,714 220 Operating transfers in from component units - Bond proceeds ' Operating transfers out to other funds - Operating transfers out to component units (60,000) - Net other financing sources (uses) 1,64,220 - Excess (deficiency) of revenues and other financing sources under expenditures and other financing uses 913,791 (3,793) FUND BALANCES (DEFICITS), at beginning of year 73,693 (179,459) Residual equity transfer in - - 1:1JND BALANCES (DEFICITS), at end of year $ 987,484 $ (183•'252) 74 EXHIBIT D -2 Hospital Kodiak State 451,471 525,320 6,249,504 Bond Fisheries Capital Totals 911,304 Improvements Research Center Grants 1998 1997 $ - $ 3,000,000 $ 784,420 $ 3,787,280 $ 1,019,462 - 2,970,000 110,735 3,080,735 487,057 250,000 - - 254,310 1,548 25,814 164,863 - 190,677 406,629 4,176,872 275,814 6,134,863 895,155 7,313,002 1,914,696 - - 232,907 668,790 451,471 525,320 6,249,504 678,397 7,768,730 9,299,212 525,320 6,249,504 911,304 8,437,520 9,750,683 (249,506) (114,641) (16,149) (1,124,518) (7,835,987) - 17,500 1,731,720 4,004,049 - - 1,060,000 (1,300,000) - (1,300,000) (887,177) - - (60,000) - (1,300,000) - 17,500 371,72u 4,176,872 (1,549,506) 1,582,046 (114,641) 3,473,056 1,351 (752,798) (3,659,115) (28,046) - - - - 1,405,646 $ 32,540 $ 3,358,415 $ (26,695) $ 4,168,492 $ 4,921,290 75 KODIAK ISLAND BOROUGH CAN I AL PROJECTS FUNDS SCHEDULE OF CAPITAL PROJECTS FOR] I IE YEAR ENDED JUNE 30. 1998 EXHI[31T D -3 APPROPRIATIONS EXPENDITURES ENCUMBRANCES PROJECT TOTAL TOTAL UNEXPENDED CURRENT UNENCUMBERED N 0 PR JI?CT S'l A'I I- I PRIO J)8 APPROPRIATIONS PRIOR 1998 EXPENDITURES BALANCE ENCUMBRANCE BRANCEC BALAN Capital Projects - Education: 410 -404 Work of Art - Auditorium Complete S 33,0 S $ 33,090 $ 33,090 $ $ 33,090 $ - $ $ - 6 410 -415 Asbestos Removal Program Complete 71,000 71,000 69,871 69,871 1,129 1,129 33 410 -446 High School Roof Maintenance Complete 72,576 72,576 72,576 72,576 - - 39 420 -501 Peterson Elementary Open 751,340 751,340 928,649 3,792 932,441 (181,101) (181,101) 78 410 -462 High School Librar Roof Open 35,000 35,000 14,177 17,780 31,957 3,043 3,043 80 410 -464 High School Parking Lot Repair Complete 45,000 1.150 46,150 28,954 17,195 46,149 1 1 93 420 -504 Northstar Elementary Complete 8.380,000 - 8,380,000 8,380,070 - 8,380,070 (70) (70) 94 420 -505 Ouzinkie School Remodel Complete 1,569,326 1,569,326 1,569,319 1,569,319 7 7 100 410 -477 Main Elemental) Steps Complete 21,800 21,800 21,800 21,800 - 1 16 410 -644 Old Harbor Exterior Paint Complete 45.000 45,000 44,944 44,944 56 56 125 410 -650 High School Locker Room Complete 51,000 51,000 46,840 563 47,403 3,597 3,597 126 410 -651 Akhiok Carpet Repair Complete 13,557 13,557 13,557 - 13,557 - - 127 410 -652 Akhiok School Painting Complete 20.164 20,164 20,164 - 20,164 - 128 410 -653 Peterson Addition (Match) Open 70,000 5S9.450 659,450 1,723 249,319 251,042 408,408 954,751 (546,343) 129 410 -654 High School Rooms Complete 6,000 6,000 5,954 - 5,954 46 - 46 130 410 -655 East Elementary Doorways Open 4,200 4,200 - - - 4,200 4,200 a 135 410 -660 North Star Enhancements Complete 79.000 79,000 29,886 49.113 78,999 1 - I 139 430 -639 Peterson Addition (Grant) Open 141,603 141,603 3,807 107,396 111,203 30,400 33,570 (3,170) 144 410 -661 Ouzinkie Artwork Complete 6,600 - 6,600 - 6,600 6,600 - - - 14S 410 -664 High School Sidewalks Complete 28,000 5,710 33,710 1,883 31,824 33,707 3 3 149 410 -665 Middle School Bus Ramp Complete 4,700 (810) 3,890 - 3,893 3,893 (3) (3) 151 410 -667 Chiniak Teacherage Complete 90,000 15,850 105,850 93,741 12,104 105,845 5 5 152 410 -668 High School Roof Design Open 72.800 72,800 - 3,804 3,804 68,996 68,996 153 410 -669 Middle School Gym Roof Open 10,000 10,000 - - 10,000 10,000 155 410 -671 Chimak School Exit Roof Open 5,700 5,700 2,513 2,513 3,187 3,187 156 410 -672 Port Lions Basketball Ct Open 24.000 24,000 18,735 18,735 5,265 5,265 160 410 -676 Area Wide Schools Complete 18,380 18,380 18.643 18,643 (263) - (263) 168 430 -647 Peterson Match Grant Open 129.230 129,230 125,511 125,511 3,719 3,719 - 179 430 -689 Peterson M:nching 03 Open 130.000 130,000 - - - 130,000 - 130,000 Total Education 11,538.956 1.001.460 12,540,416 11,381,005 668,785 12,049,790 490,626 992,040 (501,414) Capital Projects - health: 95 425 -540 Hospital Remodel Open 21.633,290 (3.626,046) 18,007,244 15,104,146 (1,223,853) 13.880,293 4,126,951 14.500 4,112,451 121 410 -647 New Ambulance Purchase Open 12,000 6,000 18,000 - - 18,000 - 18,000 123 430 -637 DOE_ Energy Grant Complete 36,079 - 36,079 36.079 36,079 - - 138 430 -638 Hospital Remodel (Grant) Complete 500,000 500,000 500,000 - 500.000 166 425 -541 hospital Renovation Open - - - 2,377,778 1,749,174 4,126,952 (4,126,952) (4.126,952) 167 430 -648 l losp Match Grant Complete 61.505 61,505 - 61,505 61,505 Transfer out - Debt Service - - - - Total health 22,181,369 (3.558.541) 18.622,828 18018,003 586,826 18,604,829 17,999 14500 3,499 continued KODIAK ISLAND BOROUGH CAPITAL PROJECTS FUNDS SCI II:DULF OF CAPITAL PROJECTS FOR THE YEAR ENDED JUNE 30. 1998 EXHIBIT D -3 confirmed APPROPRIATIONS EXPENDITURES ENCUMBRANCES PROJLCf TOTAL TOTAL UNEXPENDED CURRENT UNENCUMBERED NSL PROJ STA !S PRIO 1998 APPROPRIATIONS PRIOR 1998 EXPENDITURES BALANCE ENCUMBRANCES BALANCI' Capital Projects - Roads: 74 410 -455 Street Signs Complete $ 34,000 $ $ 34,000 S 33,434 $ 1.452 $ 34,886 $ (886) $ $ (886) 82 410 -466 Anton Larsen Road Est, Complete 21 21 21 21 - - 140 430 -640 Island Lake Creek frail Complete 145,000 145,000 145,000 - 145,000 147 430 -644 Ouzinkie Trails Complete 75,000 75,000 9,245 65,755 75,000 - 154 410 -670 KIB Pke Lot Pave Complete - 35,450 35,450 - 35,452 35,452 (2) (2) 162 410 -678 Service Distil l Gravel Resurface Complete 220.160 25,820 245,980 245,978 - 245.978 2 2 Total Roads 474. 181 61,270 535,451 433,678 102,659 536,337 (886) (886) Capital Projects - Utilities: 550 -750 Undesignated (Cin of Kodiak) Open - - - - - - - 120 550 -754 Otmeloi Water R Sewer Complete - - - - 136 550- 755 Naughton's Water Line Open 40,000 40,000 - - 40,000 40,000 137 550 - 756 As Built Surveys Open 1,000 1,000 2,689 2,689 (1,689) (1,689) 182 410 -692 State Fair g Rodeo Water Open 25,000 25,000 - 25,000 25.000 Total Utility 66,000 66,000 2,689 2,689 63,311 63311 Capital Projects - Other: v 410 -400 Undesignated Projects Open - - - 848,591 (3,546) 845,045 (845,045) (845,045) V 16 410 -429 New Parks Complete 113,210 113,210 113,229 (19) 113,210 48 430 -607 Salonie Creek Rifle Range Complete 544,000 544,000 531,913 12,087 544,000 54 430 -613 Selief Lane /Von Scheele Way Complete 75,000 75,000 75,000 - 75,000 66 410 -456 SeliefLaneDrainage Complete 7,030 7,030 7,030 7,030 72 430 -622 Bayside Fire Station Complete 150,000 150,000 159,741 159,741 (9.741) (9,741) 79 410 -463 Crab Analog Report Open 10,000 10.000 - 10,000 10.000 85 410 -471 Villase Metals Removal Open 150.000 150,000 111,415 - 111,415 38,585 38.585 86 410 -470 KIB Oil Tank Replacement Complete 100,000 100,000 99,653 135 99,788 212 212 87 430 -632 Community Support Facility Complete 381,000 381,000 379,260 379,260 1,740 1,740 89 430 -633 DHSS /Planning Grant Complete 40,000 40,000 19,869 - 19,869 20,131 20,131 96 410 -473 Kodiak Clean Lakes Grant Complete 96,124 96,124 96,099 26 96,125 (1) (1) 98 410 -475 Borough Bldg. Parking Lot Complete 45,000 45,000 45,010 142 45,152 (152) (152) 105 410 -482 Anton Larsen Dock Open 140,000 140,000 134,179 - 134,179 5,821 5,821 109 410 -637 Fisheries Development Complete 50,000 - 50,000 - 50,000 50,000 - 110 410 -638 KIB Recreation Facilities Complete 400,000 6,570 406,570 334,959 66,097 401,056 5,514 5,514 114 410- 642 State Airport Improvements Open 11,000 - 11,000 - 60 60 10,940 10,940 115 410 -643 Chiniak Tsunami Siren Open 30,000 30,000 27,754 1,015 28,769 1,231 1,231 117 410 -645 Heliopad Striping Open 3,000 3,000 - - - 3.000 3,000 119 430 -636 Smoker's Rehabilitation Complete 223,857 - 223,857 223,857 - 223,857 - - - 124 426 -801 Near Island Research Facility Open 17.465.000 3.385,000 20,850,000 3,178.668 6.249.506 9,428,174 11,421,826 2.063,223 9.358.603 131 410 -656 Little League Fencing Complete 21.366 - 21,366 21,366 - 21,366 - - - 132 410 -6i7 City Library/Alaska Room Complete 16.000 (4.530) 11.470 11,365 - 11,465 5 5 133 410 -658 Red Cross Building Repairs Open 12,000 12,000 709 6.068 6.777 5,223 5,223 141 430 -641 Monashka Bay Park Complete IOi 105,000 1.790 103,210 105.000 - - continued KODIAK ISLAND BOROUGH EXHIBIT D -3 continued CAPITAL PROJECTS FUNDS SCHEDULE 01= CAPITAL PROJECTS F TFIL YEAR ENDED JUNE 30. 1998 Total - Capital Projects Other 21 .989,580 7.059.947 29,049,527 6,944,711 7,086,030 14,030,741 15,018,786 3,586,557 11,432,229 Total All Capital Projects $56,184,086 $ 4.630,136 $ 60,814,222 $ 36,780,086 $ 8444,300 $ 45,224.386 $ 15,589,836 $ 4,593,097 $ 10,996,739 MAN M � M w M � M M M MM MI M� Mr M � APPROPRIATIONS EXPENDITURES ENCUMBRANCES PROJECT TOTAL TOTAL UNEXPENDED CURRENT UNENCUMBERED �Lo- PROJECI S AI LIS PRIOfZ Ivat APPROPRIATIONS PRIOR 19998 EXPENDITURES BALANCE ENCUMBRANCES BALANCE. lag 430 -642 Clean Water Fund /Karluk Open $ 40,000 $ 10.000 $ 50,000 $ 21,642 $ 1,550 $ 23,192 $ 26,808 $ $ 26.808 143 430 -643 EVOSTC Project Open 250,000 - 250,000 109,042 118,965 228.007 21,993 21,993 145 410 -662 Computer Software Acquis. Open 300.000 290.000 590,000 378,558 6171 384,729 205,271 31,818 173.453 146 410 -663 BMX Bike Trail Open 20,000 35.000 55,000 3,749 9.339 13,088 41,912 - 41,912 151 410 -666 Borough Building Repairs Complete 33.000 13.900 46,900 9,723 34.405 44.128 2,772 2,772 157 410 -673 Sargent Creek Drainage Complete - 70.000 70,000 440 64,920 65.360 4,640 4,640 158 410 -674 Fire Service Study Open 20.000 20,000 - - - 20,000 20,000 159 410 -675 Borough Parks Open 26.500 26,500 3,031 3,031 23,469 23,469 161 410 -677 Fairgrounds Drain Completed 16.000 16,000 16,000 16.000 - - 163 410 -679 Port Lions C Hall Completed 10.000 10,000 10,000 10,000 - - 164 430 -645 Waste Management Imp Open 1.630.000 1,630,000 - - 1,630,000 - 1,630,000 165 430 -646 Landfill Closeout Open 1.000.000 1,000,000 223,461 223,461 776,539 1,489,516 (712977) 169 430 -649 Clean Water Karluk Open 350.000 350,000 82,083 82,083 267,917 2,000 265.917 170 410 -680 Bayside Fuel Tank Removal Open 5.000 5,000 - - 5 - 5,000 171 410 -681 Womens Bay Tank Removal Open 32.000 32,000 1,794 1,794 30,206 30,206 172 410 -682 Nixon Ranch Road Open 23.000 23,000 200 200 22,800 22,800 173 410 -683 Bayside Classroom Add Open 75.000 75,000 12,749 12,749 62,251 62.251 174 410 -684 Bayside Storage /Bay Add Open 325.000 325,000 - - 325,000 325,000 175 430 -685 Anton Larsen Bay Trail Open 70.000 70,000 2,585 2,585 67,415 67,415 176 430 -686 Is] Lake Trail E-xt Open 25.000 25,000 981 981 24,019 24,019 177 430 -687 Anton Larsen Boat Ramp Open 400.000 400,000 - - 400,000 400,000 v 178 430 -688 Karluk Clinic Open 214.500 214,500 6,211 6,211 208,289 208,289 00 180 430 -690 Welfare To Work Open 140.000 140,000 - - 140,000 140,000 181 430 -691 Isl Lake Crk Fish Passage Open 10.000 10,000 10,000 10,000 183 410 -693 School Freezer Relocation Open 40.000 40,000 - 40,000 40,000 'transfers Out - Fund 426 Open 1,107,993 (1.107,993) - 6,804 6,804 (6,804) (6,804) Transfers Out - Fund 430 Open 50,000 (50.000) - - Total - Capital Projects Other 21 .989,580 7.059.947 29,049,527 6,944,711 7,086,030 14,030,741 15,018,786 3,586,557 11,432,229 Total All Capital Projects $56,184,086 $ 4.630,136 $ 60,814,222 $ 36,780,086 $ 8444,300 $ 45,224.386 $ 15,589,836 $ 4,593,097 $ 10,996,739 MAN M � M w M � M M M MM MI M� Mr M � 1 1 1 � ENTERPRISE FUNDS 1 Enterprise Funds are used to account for Borough operations that are financed and operated in a manner similar to private business enterprises. The intent of the Borough is that the costs (expenses, including depreciation) of providing these services to the general public on a continuing basis are financed or recovered primarily through user charges. 1 1 i k E 1 KODIAK ISLAND BOROUGH ENTERPRISE FUNDS COMBINING BALANCE SHEET AS OF JUNE 30, 1998 (with comparative totals for 1997) } Municipal Kodiak Solid Waste Fisheries k Collection and Hospital Research Totals i Disposal Facilities 911 Services Center 1998 1997 ASSETS CURRENT ASSETS: Equity in central treasury $ 10,286 $ 33,812 $ 10,669 $ $ 54,767 $ 129,276 Temporary investments - 89,871 - 89.871 476.928 Customer receivables 225,259 - 325,259 263.214 Due from other funds 290,000 500,000 790,000 660.000 Inventories - 277,007 277,007 277,007 Total current assets 525,545 900,690 10,669 1,436,904 1,806.425 RESTRICTED ASSETS: Cash with fiscal agent 208,203 208,203 1,642,622 Temporary investments 139,520 139,520 150.768 Total restricted assets 347,723 347,723 1,793.390 1 1 FIXED ASSETS: Unclassified utility plant in service 2,205,383 - - 2,205,383 2,205,383 Land and improvements - 32,266 - - 32,266 40?75 Buildings - 4,583,308 - - 4,583,308 4,145,676 Equipment 837,052 5,340,360 - - 6,177,412 5,973.355 Work in process - 3,906,168 - 8,000,000 11,906,168 2.377,778 3,042.435 13,862,102 8,000.000 24.904,537 14,742.467 E Less accumulated depreciation (952,701) (5,622,984) - (6.575,685) (5,877,774) i Net fixed assets 2,089,734 8,239,118 8,000,000 18,328,852 8.864.69: TOTAL $ 2,615,279 $ 9,487,531 $ 10.669 $ 8,000.000 $ 20.113,479 $ 12.464.508 80 EXHIBIT E -I Municipal Solid Waste Collection and I lospital Disposal Facilities 911 Services LIABILITIES AND FUND EQUITIES CURRENT LIABILITIES: Accounts payable $ 160,395 $ 98,005 $ Accrued expenses 20,455 - Current portion of note payable - 523,349 Current portion of lease obligations 230,973 Deferred revenues 60,000 - Due to City of Kodiak - 38,583 Due to other funds 13,000 Total current liabilities 180,850 912,327 51,583 NONCURRENT LIABILITIES: Notes payable 2,450,303 Capital lease obligations 1,154,520 Long -term interfund borrowings - - ACCRUAL FOR LANDFILL CLOSURE AND POSTCLOSURE COSTS 2,200,131 - Total liabilities 2,380,981 4,517,150 FUND EQUI VIES (DI ?I- IN ASSETS): Contributions in aid ol'construction: State of Alaska Federal Government Other Accumulated amortization Net contibulions in aid of construction Contributed capital Accumulated deficits, unreserved Total fund equities (deficiencies in assets) TOTAL Kodiak Fisheries Research Totals Center 1998 1997 $ $ 258.400 $ 260.072 20,455 18.488 523,349 492.063 230,973 329.819 60.000 - 38,583 - 246.141 259,141 1,505.000 246,141 1.390,901 2,605.442 2,450,303 2,971.335 - 1,154 1,407.947 8,000,000 8.000,000 - 2.200,131 1.984.423 51,583 8,246,141 15,195,855 8,969,147 2,483,473 ' 2.483.473 19.990 19.990 19.990 2,503,463 2.503,463 2,50 3.46 3 (818.526) (818.526) (744.287) 1,684.937 - 1,684,937 1.759,176 - 5,147,927 5.147,927 4.298.512 (1,450.639) (177,546) (40,914) (246.141) (1.915,240) (2,562.327) 234,298 4,970,381 (40,914) ( 246,141) 4.917.624 3,495, 361 $ 2,615,279 $ 9,487,531 $ 10,669 $ 8.000,000 $ 20.113,479 $ 11464.508 81 KODIAK ISLAND BOROUGH EXHIBIT E -2 ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) Municipal Kodiak Solid Waste Fisheries Collection and Hospital Research Totals Disposal Facilities 911 Services Center 1998 1997 OPERATING REVENUES: (50,692) 39.872 (134.506) - (145.26) Solid waste collection $ 1,539,677 $ $ $ $ 1,539.677 $ 1,591818 Solid waste disposal 870,753 Interest income 257 870,753 741,941 State sources - revenue sharing - 70,751 Interest expense 70.751 - Customer charges - - 51,270 51,270 93.592 Lease proceeds - 720,000 - 720,000 120,000 Other 9,777 16,965 - 26,742 16,568 Net inconlc (loss) 2,420,207 807,716 51,270 3,279.193 2,565,919 OPERATING EXPENSES: fRANSLER (I'O) HROM 0'1'1II:R FUNDS: Personnel services 349,450 - - 349,450 369,012 Professional services - Operating transfers out to other funds - 102,097 Solid waste collection 1,163,688 (420.000) (1,500,000) 1.163,688 1,110.129 Contracted services 288,120 288,120 247,268 Repairs and maintenance 33,415 33,415 29,229 Landfill closure and postclosure costs 227,512 - 227,512 (246.629) Depreciation 113,936 583,975 697,911 213,107 General and administration 176,233 20,729 74,239 196,962 176,783 Medicaid refund - 163,140 Increase (decrease) in retained earnings 163.140 - felephone services - - 185,776 185,776 (1,474,443) Recycling services 68,009 - 68.009 11,059 Contributions 50,536 (40,914) $ (246.141) 50.536 74,907 2,470,899 767,844 185J76 3.424.519 2.086.901 Operating income (loss) (50,692) 39.872 (134.506) - (145.26) 478.958 0 '1'1IFR INCOMI: (1:\Pl:NS1:S). Interest income 257 70,149 173.859 244,265 8591 Interest expense - (395.151) - (395.151) (249.991) Loss on disposal of hospital operations (74.971) Loss on Saleofassets (10,940) - (10.940) (1.288) Net inconlc (loss) (50.435) (296,070) (134.506) 173.859 ( 307.1 i2) I61?99 fRANSLER (I'O) HROM 0'1'1II:R FUNDS: Operating translcn in from other Finds 1.300.000 - 1.300.000 Operating transfers out to other funds - (420.000) (420.000) (1,500,000) Operating translers in from component units 726,797 Transfer of water and sewer operations to the City of Kodiak - - (1,409,757) Amortization of contributions in aid of constructioll 74,239 - 74.239 76.505 Increase (decrease) in retained earnings 23.804 1.003.930 (134,506) (246,141) 647.087 (1.944.856) Retained e:Hnings (deficit) at beginning of year (1,474,443) (1 .181.476) 93,592 (2.562,327) (617.471) Accumulated deficits at end of year $ (1,450.6 39) $ (177.546) $ (40,914) $ (246.141) $ (1.915.240) $ - C- 1 .562.327) 82 1 KODIAK ISLAND BOROUGH EXHIBIT E -3 ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) Municipal Kodiak Solid Waste Fisheries Collection and Hospital 911 Research Totals Disposal Facilities Services Center 1998 1997 OPERATING INCOME (LOSS) f (50,692) S 39,872 f (134,506) S S (145,326) S 478,958 ADJUSTMENTS TO RECONCILE OPERATING LOSS TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES: Depreciation 113,936 583,975 697,911 213,107 Gain (loss) on disposal of fixed assets - 10,940 10,940 - Changes in assets and liabilities: Interest receivable on investments Customer receivables 27,305 10,650 37,955 75,605 Due tolfrom component unit - - - 207,100 Dueto/frorn other funds (295,000) (1,340,000) 13,000 246,141 (1,375,859) 1,140,700 Accounts payable 942 (2,614) (1,672) (47,692) Deferred revenues 60,000 60,000 Customer deposits ( 7.949) Accrual for landfill closure and postclosure costs 215,708 215,708 (332,290) Due to the City of Kodiak 38,583 38,583 (28,300) Other accrued liabilities 1,967 1,967 3,197 Total adjustments 64,858 (687,699) 62,233 246,141 (314,467) 1123,478 Net cash provided by (used for) operating activities 14,166 (647,827) (72,273) 246,141 (459,793) 1,702,436 CASH FLOWS FROM NON - CAPITAL AND RELATED FINANCING ACTIVITIES: Cash namferred from Hospital Component Unit - - 203,692 M a[ets out to odor fiatds - (420,000) (420,000) (1,500,000) Opetating tratuI in from Hospital 1,300,000 1,300,000 726,797 Component Unit Equity tmsfers out to Capital Projects Fund - - (1,405,646) Transfer of Water and Sewer Operations to the City of Kodiak (703,420) Net cash provided by (used for) non - capital and related financing activities 1,300,000 (420,000) 880,000 (2.678.577) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (7,255) (1,538080) (8.000,000) (9,545335) (2.446.373) Interest paid on notes payable and capital leases (395,151) ( 395.151) (249.991) Proceeds from issuance of notes payable - 4,471 910 Proceeds from issuance of long -tens interfund borrowing 8.000.000 8.000.000 Proceeds from disposal of Component Unit Hospital operations - 2.000.000 Principal payments on notes payable (489,746) (489.746) (461648) l i Principal payments on capital lease obligations (352,273) (352,273) (52.616) Contributed capital received from private trusts - 210,800 - - 210.800 - Proceeds from sale of equipment '. 150 Net cash provided by (used for) capital and related financing activities (7,255) (2,564,450) (2,571.705) 3.262.432 CASH FLOWS FROM INVESTING ACTIVITIES: Changes in restricted assets: Deductions from (additions to) restricted cash 1,434,419 1,434,419 (1,793,390) Deductions from restricted investments 11,248 11,248 - Interest and dividends on investments 257 70,149 173,859 244,265 8,591 Purchases of investments - (476,928) Maturities of investments - 387,057 387,057 Net cash provided by (used for) investing activities 257 1,902 873 173,859 2,076,989 (2,261,727) Net change in cash and cash equivalents 7,168 (9,404) (72,273) (74,509) 24.564 CASH AND CASH EQUIVALENTS, at beginning of year 3,118 43,216 82.942 129,276 104,712 CASH AND CASH EQUIVALENTS, at end of year S 10,286 S 33.812 S 10.669 S s 54,767 S 129.276 83 KODIAK ISLAND BOROUGH MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FUND BALANCE SHEETS AS OF JU NE 30, 1998 AND 1997 $ 10,286 $ 3,118 225,259 252,564 290,000 - 525,545 255,682 2,205,383 2,205,383 837,052 829,797 3,042,435 3,035,180 (952,701) (838,765) 2,089,734 2,196,415 $ 2,615,279 $ 2,452,097 1998 1997 ASSETS CURRENT ASSETS: Equity in central treasury Customer receivables Due from other funds Total current assets FIXED ASSETS: Unclassified utility plant in service Equipment Less accumulated depreciation Net fixed assets TOTAL LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable Accrued expenses Due to other funds Total current liabilities ACCRUAL FOR LANDFILL CLOSURE AND POSTCLOSURE COSTS FUND EQUITY: Contributions in aid of construction: State of Alaska Other Accumulated amortization Net contributions in aid of construction Accumulated deficit, unreserved Total fund equity TOTAL $ 160,395 20,455 125U,2SJU /,.i 6U,YtS 1 2,483,473 19,990 2,503,463 1,V0`1,7J / (1,450,639) EXHIBIT E -4 $ 159,453 18,488 5,000 182,941 1,984,423 2,167,364 2,483,473 19,990 2,503.463 (744,287) 1,759,176 (1,474,443) 284,733 84 KODIAK ISLAND BOROUGH 349,450 38,220 EXHIBIT E -5 MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FUND 1.163,688 (53,288) STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND 302,000 288,120 13,880 CHANGES IN RETAINED EARNINGS 40,500 33,415 7,085 BUDGET AND ACTUAL 227,410 227,512 (102) YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 116,800 113,936 2,864 110,601 1998 176,233 29,987 176,783 - Variance - (50,536) 74,907 68,000 Favorable 1997 Budget Actual (Unfavorable) Actual OPERATING REVENUES: (77.000) (50.692) (26,308) Solid waste collection $ 1.565,000 $ 1,539,677 $ (25,323) $ 1.593,818 Solid waste disposal 802,000 870,753 68,753 741,941 Other 15,000 9,777 (5,223) 16,568 2.382.000 2,420.207 38,207 2,352.327 OPERATING EXPENSES: Personnel services Solid waste collection Contracted services Repairs and maintenance Landfill closure and postclosure costs Depreciation General and administration Contributions Recycling services Operating income (loss) OTHER INCOME (EXPENSES): Interest income Loss on sale of fixed assets Net income (loss) Amortization of contributions in aid of construction Increase in retained earnings Retained deficit, at beginning of year Retained deficit, at end of year 387.670 349,450 38,220 362,483 1,110,400 1.163,688 (53,288) 1,110.129 302,000 288,120 13,880 247,268 40,500 33,415 7,085 29.229 227,410 227,512 (102) (246,629) 116,800 113,936 2,864 110,601 206,220 176,233 29,987 176,783 - 50,536 (50,536) 74,907 68,000 68,009 (9) 11,058 2,459,000 2,470,899 (11,899) 1,875,829 (77.000) (50.692) (26,308) 476.498 257 257 770 - (1.288) 257 257 (518) $ (77.000) (50.435) $ (25.794) 475.980 74.239 76.805 23.804 552.785 (1.474.443) (1027,228) $ (1.450.639) $ (1,474,443) 85 KODIAK ISLAND BOROUGH MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1998 AND 1997 EXHIBIT E -6 1998 1997 OPERATING INCOME (LOSS) $ (50,692) S 476,498 ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation Changes in assets and liabilities: Customer receivables Due from other funds Due to other funds Accounts payable Customer deposits Accrual for landfill closure and postclosure costs Other accrued liabilities Total adjustments Net cash provided by operating activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets Proceeds from sale of equipment Net cash used for capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES: Interest and dividends paid on investments Net change in cash and cash equivalents CASH AND CASH EQUIVALENTS, at beginning of year CASH AND CASH EQUIVALENTS, at end of year 113,936 110,601 27,305 21,071 (290,000) - (5,000) (144,100) 942 (65,670) - (700) 215,708 (332,290) 1,967 3,197 64,858 (407,891) 14,166 68,607 (7,255) (68,595) 2,150 7,168 2,932 $ 10,286 $ 3,118 86 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 KODIAK ISLAND BOROUGH HOSPITAL FACILITIES FUND BALANCE SHEETS AS OF JUNE 30, 1998 AND 1997 EXHIBIT E -7 ASSETS CURRENT ASSETS: Equity in central treasury Temporary investments Due from other funds Inventories Total current assets RESTRICTED ASSETS: Cash with fiscal agent Temporary investments Total restricted assets FIXED ASSETS: Land and improvements Buildings Machinery and equipment Work -in- process Less accumulated depreciation Net fixed assets TOTAL LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable Due to other funds Deferred revenues Current portion of long-term debt Current portion of capital lease obligations Total current liabilities NONCURRENT LIABILITIES: Long -term debt Capital lease obligations Total noncurrent liabilities FUND EQUITY: Contributed capital: Contributed capital Accumulated deficits: Accumulated deficits, unreserved Total fund equity TOTAL 87 1998 1997 $ 33,812X $ 43,216 89,871 X 476,928 500,000 X 660,000 277,007 X 277,007 32,266X. 40,275 900,690 1,457,151 208,203 X 1,642,622 139,520 150,768 347,723 1,793,390 32,266X. 40,275 4,583,308 )( 4,145,676 5,340,360 )( 3,906,168 X 5,143,558 2,377,778 1 S �• 4� 3 f o (5,622,984) X (5,039,009) ,S`53 1 1 7,5 - 8,239,118 6,668,278 $ 9,487,531 $ 9,918,819 $ 98,005 $ 100,619 - 1,500.000 60,000 - 523,349 492,063 912,327 2,422,501 1450.303 1971.335 .i 3 O V4,252.i 4,J 4,517,150 6,801,783 5,147,927 4,298,512 (177,546) (1,181,476) 4,970,381 3,117,036 $ 9,487,531 $ 9,918,819 E KODIAK ISLAND BOROUGH EXHIBIT E -8 rt HOSPITAL FACILITIES FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND ' CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) ' 1998 Variance favorable 1997 ' Budget Actual (unfavorable) Actual OPERATING REVENUES: State sources - revenue sharing $ 70,000 $ 70,751 $ 751 S - Rental income 720,000 720,000 - 120,000 ' Other income - 16,965 16,965 - 790,000 807,716 17,716 120,000 ' OPERATING EXPENSES: Personnel services - - - 6,529 Professional services - - - 102,097 ' Depreciation - 583,975 (583,975) 102,506 General and administration Medicaid refund 250,000 65,200 20,729 163,140 229,271 (97,940) - - ' 315,200 767,844 (452,644) 211,132 Operating income (loss) 474,800 39,872 (434,928) (91,132) ' OTHER INCOME (EXPENSES): Interest income Interest expense 60,000 (382,640) 70,149 (395,151) 10,149 (12,511) 7,821 (249,991) ' Loss on disposal of fixed assets (10,940) (10,940) Loss on disposal of hospital operations, net of proceeds of $2,000,000 - - - (74,971) Income (loss) before operating transfers 152,160 (296,070) (448,230) (408.273) OTHER FINANCING SOURCES (USES): Operating transfers in from ' component units - - - 726,797 Operating transfers in from other funds: Capital projects - hospital 1,300,000 1.300.000 - - , Operating transfers out to other funds: Capital projects - hospital - - - (1,500,000) Net other financing sources (uses) 1,300,000 1,300.000 - (773,203) ' Net income (loss) $ 1,452,160 1,003,930 $ (448,230) (1,181,476) Accumulated deficit, at beginning of year (1,181.476) , Accumulated deficit, at end of year $ (177,546) $ (1,181,476) 88 ' ' KODIAK ISLAND BOROUGH EXHIBIT E -9 HOSPITAL FACILITIES FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1998 AND 1997 1998 1997 ' OPERATING INCOME (LOSS) $ 39,872 $ (91,132) ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH ' PROVIDED BY (USED FOR) OPERATING ACTIVITIES: Depreciation 583,975 102,506 Loss on disposal of fixed assets 10,940 - ' Changes in assets and liabilities: Due from other funds 160,000 (660,000) Accounts payable (2,614) 100,619 Due to other funds (1,500,000) 1,500,000 ' Deferred revenues 60,000 Total adjustments (687,699) 1,043,125 t Net cash provided by (used for) operating activities (647,827) 951,993 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash transferred from hospital component unit 203,692 ' Equity transfers -out to capital projects funds = (1,405,646) Operating transfer -out to capital projects funds (1,500,000) Operating transfers -in from hospital component unit 1,300,000 726,797 Net cash provided by (used for) noncapital financing activities 1,300,000 (1,975,157) ' CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (1,538,080) (2,377,778) Interest paid on note payable and capital leases (395,151) (249,991) Proceeds from issuance of note payable - 4,471,910 ' Proceeds from disposal of component unit hospital operation - 2,000,000 Principal payments on note payable (489,746) (462,648) Principal payments on capital lease obligations (352,273) (52.616) ' Contributed capital received from private trusts 210,800 - Net cash provided by (used for) and related financing activities (2,564,450) 3,328,877 CASH FLOWS FROM INVESTING ACTIVITIES: Interest and dividends paid on investments 70,149 7,821 Purchase of investments - (476.928) Maturities of investments 387,057 - 1 Deductions from (additions to) restricted cash 1,434,419 (1,793,390) Deductions from restricted investments 11,248 - Net cash provided by (used for) investing activities 1,902,873 (2,262,497) Net change in cash and cash equivalents (9,404) 43,216 ' CASH AND CASH EQUIVALENTS, at beginning of year CASH AND CASH EQUIVALENTS, at end of year $ 43,216 - 33,812 $ 43,216 89 KODIAK ISLAND BOROUGH 911 SERVICES FUND BALANCE SHEETS AS OF JUNE 30, 1998 AND 1997 EXHIBIT E -10 ASSETS 1998 1997 ASSETS: Equity in central treasury $ 10,669 $ 82,942 Customer receivables - 10,650 TOTAL LIABILITIES AND FUND EQUITY IN $ 10,669 $ 93,592 (DEFICIENCY ASSETS) LIABILITIES: Due to City of Kodiak $ 38,583 $ - Due to other funds 13,000 - Total liabilities 51,583 - FUND EQUITY (DEFICIENCY IN ASSETS): Retained earnings (accumulated deficit), unreserved (40,914) 93,592 TOTAL $ 10,669 $ 93,592 a KODIAK ISLAND BOROUGH EXHIBIT E -11 911 SERVICES FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual OPERATING REVENUES: Customer charges $ 92,400 $ 51.270 $ (41,130) $ 93,592 92,400 51,270 (41,130) 93,592 OPERATING EXPENSES: Telephone services Operating income (loss) Retained earnings, at beginning of year Retained earnings (accumulated deficit), at end of year 92,400 185,776 (93,376) 92,400 185,776 (93,376) $ - (134,506) $ (134,506) 93,592 $ (40,914) 93,592 $ 93,592 a KODIAK ISLAND BOROUGH 911 SERVICES FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1998 AND 1997 EXHIBIT E -12 1998 1997 OPERATING INCOME (LOSS) $ (134,506) $ 93,592 ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Changes in assets and liabilities: Customer receivables Due to other funds Due to City of Kodiak Total adjustments Net cash provided by (used in) operating activities Net change in cash and cash equivalents CASH AND CASH EQUIVALENTS, at beginning of year CASH AND CASH EQUIVALENTS, at end of year 10,650 (10,650) 13,000 - 38,583 62,233 (10,650) (72,273) 82,942 (72,273) 82,942 82,942 - $ 10,669 $ 82,942 92 DIAK ISLAND B KODIAK FISHERIES RESEARCH CENTER FUND BALANCESHEET AS OF JUNE 30, 1998 1998 ASSETS FIXED ASSETS: Work -in- process 8,000,000 TOTAL $ 8,000,000 LIABILITIES AND DEFICIENCY IN ASSETS CURRENT LIABILITIES: Due to other funds 246,141 Total current liabilities 246,141 NONCURRENT LIABILITIES: Long -term interfund borrowings 8,000,000 Total liabilities 8,246,141 DEFICIENCY IN ASSETS: Accumulated deficit, unreserved (246,141) Total deficiency in assets (246,141) TOTAL $ 8,000,000 F". 1ti'.3 1 1 "I 93 KODIAK ISLAND BOROUGH KODIAK FISHERIES RESEARCH CENTER FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 1998 OTHER INCOME: Interest income Income before operating transfers OTHER FINANCING USES: Operating transfers out to other funds Special revenues - Facilities Fund Net loss Retained earnings at beginning of year Accumulated deficit at end of year EXHIBIT E -14 variance- Favorable Budget Actual (Unfavorable) 173,859 173,859 173,859 173,859 (420,000) (420,000) (246,141) $ (246,141) $ (246,141) 94 KODIAK ISLAND BOROUGH KODIAK FISHERIES RESEARCH CENTER FUND STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 1998 EXHIBIT E -15 1998 OPERATING INCOME $ - ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Changes in assets and liabilities: Due to other funds 246,141 Total adjustments 246,141 Net cash provided by operating activities 246,141 CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES: Operating transfer -out to capital projects funds (420,000) Net cash used for noncapital financing activities (420,000) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (8,000,000) Proceeds from issuance of long -term interfund borrowing 8,000,000 Net cash provided by capital and related financing activities - CASH FLOWS FROM INVESTING ACTIVITIES: Interest income 173,859 Net cash provided by investing activites 173.859 Net change in cash and cash equivalents - CASH AND CASH EQUIVALENTS, at beginning of year - CASH AND CASH EQUIVALENTS, at end of year $ - M INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the funding of goods or services provided between departments of the govern- mental unit or to other governments or non - profit agencies on a cost - reimbursement basis. KODIAK ISLAND BOROUGH EXHIBIT F -1 MANAGEMENT INFORMATION SYSTEMS FUND BALANCE SHEETS AS OF JUNE 30, 1998 AND 1997 1998 1997 ASSETS CURRENT ASSETS: Equity in central treasury $ 87,242 $ 81,106 Account receivables, net - 17,725 Prepaid expenses 16,848 25,272 Total current assets 104,090 124,103 FIXED ASSETS: Machinery and equipment 980,897 912,329 Less accumulated depreciation (593,605) (504,746) Net fixed assets 387,292 407,583 TOTAL $ 491,382 $ 531,686 CURRENT LIABILITIES: Accounts payable Accrued liabilities Total current liabilities FUND EQUITY: Contribution in aid of construction Accumulated deficit Total fund equity TOTAL $ 9,965 $ 1,286 38,812 36,460 617,382 617,382 (174,777) (123,442) 442,605 493,940 S 491,382 S 531,686 97 KODIAK ISLAND BOROUGH EXHIBIT F -2 MANAGEMENT INFORMATION SYSTEM FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN RETAINED EARNINGS BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1998 (with comparative totals for 1997) 1998 Variance - Favorable 1997 Budget Actual (Unfavorable) Actual OPERATING REVENUES: Charges for services: General Fund Mental Health Center Day Care Assistance Fund Municipal Solid Waste Collection and Disposal Fund Land Sale Fund Kodiak Island Hospital and Care Center Sale of copies OPERATING EXPENSES: Personnel services Repairs and maintenance Depreciation Supplies General and administration Net loss $ 242,900 $ 558,292 $ 315,392 $ 467,377 46,930 34,951 (11,979) - 2,670 2,670 - 1,800 4,920 4,904 (16) 2,964 5,700 5,700 - 3,303 50,000 33,333 (16,667) 91,156 32,290 22,693 (9,597) 27,491 385,410 662,543 277,133 594,091 428,230 432,619 (4,389) 404,896 79,525 84,603 (5,078) 28,423 102,980 88,859 14,121 73,752 46,135 45,129 1,006 32,958 66,960 62,668 4,292 58,163 723,830 713,878 9,952 598,192 $ (338,420) (51,335) $ 287,085 (4,101) ACCUMULATED DEFICIT, at beginning of year (123,442) (119,341) ACCUMULATED DEFICIT, at end of year $ (174,777) $ (123,442) 98 KODIAK ISLAND BOROUGH EXHIBIT F -3 MANAGEMENT INFORMATION SYSTEMS FUND STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1998 AND 1997 1998 1997 OPERATING LOSS $ (51,335) $ (4,101) ADJUSTMENTS TO RECONCILE OPERATING LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation Changes in assets and liabilities: Accounts receivables, net Prepaid expenses Accounts payable Accrued liabilities Total adjustments Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition and construction of capital assets Net change in cash and cash equivalents CASH AND CASH EQUIVALENTS, at beginning of year CASH AND CASH EQUIVALENTS, at end of year 88,859 73,752 17,725 (17,725) 8,424 8,424 8,679 (4,995) 2,352 (6,158) 126,039 53,298 74,704 49,197 (68,568) (105,016) 6,136 (55,819) 81,106 136,925 $ 87,242 $ 81,106 .. 1 1 1 I I r 1 iJ 11 GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Assets Account Group is a self - balancing account group which is used to account for the fixed assets of the Borough other than those recorded in the Enterprise Funds. BOROUGH EXHIBIT G -1 GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF FIXED ASSETS BY SOURCE AS OF JUNE 30, 1998 1998 GENERAL FIXED ASSETS: Land $ 5,397,389 Buildings 88,4 l 8,025 Improvements other than buildings 858,460 Machinery and equipment 1,503,883 Construction work -in- progress 28,345,940 TOTAL $ 124,523,697 INVESTMENT IN GENERAL FIXED ASSETS: Capital Projects Funds: General obligation bonds $ 75,762,883 Federal grants 4,316,206 State grants 16,288,159 General Fund revenues 8,552,684 Special Revenue Fund revenues 4,256,203 Contributions from State of Alaska 10,036,366 Contributions from Federal Government 1,259,300 Contributions from others 4,051,896 TOTAL $ 124,523,697 BE 102 1� K ODIAK ISLAND BOROUGH EXHIBIT G -2 GENERAL FIXED ASSETS ACCOUNT GROUP Y SCHEDULE OF GENERAL FIXED ASSETS , BY FUNCTION AND ACTIVITY AS OF JUNE 30, 1998 Improvements Machinery Total Land Buildings Other Than Buildings and Equipment Staff agencies: Borough mayor $ 23,189 $ - $ - $ - $ 23,189 Borough clerk 39,848 - - - 39,848 Finance department 116,328 - - - 116,328 Assessing department 61,341 - - - 61,341 e Community development department 101,147 - - - 101,147 Borough engineering and facilities department 82,075 - - - 82,075 g Land sales 15,154 - - - 15,154 General administration 127,715 - - - 127,715 Mental Health Center 173,825 - - - 173,825 Child Care Assistance Program 2,265 - - - 2,265 Coastal management 1,629 - - - 1,629 G Total staff agencies 744,516 - - - 744,516 Public safety: Emergency preparedness 229,321 - 100,000 - 129,321 Fire Protection Area No. 1 1,138,059 241,136 614,520 - 282,403 Womens Bay Service Area 639,415 - 425,655 - 213,760 Woodland Acres Street Light Service Area 3,014 - - 3,014 - Kodiak Transit Authority 73,095 - - - 73,095 i Total public safety 2,082,904 241,136 1,140,175 3,014 698,579 Schools 81,240,673 - 81,240 673 - - Teacher housing 231,560 - 231,560 - - General government buildings 4,849,712 - 4,805,617 13,307 30,788 Building sites 404,402 404,402 - - - Playgrounds 710,239 - - 710,239 - Other 1,161,900 - 1,000,000 131,900 30,000 88,598,486 404,402 87,277,850 855,446 60,788 Undeveloped land 4,751,851 4,751,851 - - - 96,177,757 5,397,389 88,418,025 858,460 1,503,883 Construction work -in- progress 28,345,940 - 27,961,211 - 384,729 Total general fixed assets $ 124,523,697 $ 5,397,389 $ 116,379,236 $ 858,460 $ 1,888,612 102 L : i 1 GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED JUNE 30, 1998 EXHIBIT G -3 103 General Fixed General Fixed Assets at Assets at July 1, 1997 Additions Deletions June 30, 1998 Staff agencies: Borough mayor $ 23,189 $ - $ - $ 23,189 Borough clerk 38,646 4,107 2,905 39,848 Finance department 114,860 8,072 6,604 116,328 Assessing department 62,000 - 659 61,341 Community development department 125,753 - 24,606 101,147 Borough engineering and facilities department 82,075 - - 82,075 Land sales 19,272 677 4,795 15,154 General administration 127,715 - - 127,715 Mental Health Center 157,625 16,200 - 173,825 Child Care Assistance Program 1,240 1,025 - 2,265 Coastal management 1,123 506 - 1,629 Total staff agencies 753,498 30,587 39,569 744,516 Public safety: Emergency preparedness 227,598 1,723 - 229,321 Fire Protection Area No. 1 1,123,080 14,979 - 1,138,059 Womens Bay Fire District 639,415 - - 639,415 Woodland Acres Street Light Service Area 3,014 - - 3,014 Kodiak Transit Authority - 73,095 - 73,095 Total public safety 1,993,107 89,797 - 2,082,904 Schools 81,240,673 - - 81,240,673 Teacher housing 125,715 105,845 - 231,560 General government buildings 4,825,783 23,929 - 4,849,712 Building sites 404,402 - - 404,402 Playgrounds 710,239 - - 710,239 Other 1,161,900 - - 1,161,900 88,468,712 129.774 - 88.598,486 Undeveloped land 4,751,851 - - 4,751,851 95,967,168 250,158 39,569 96,177,757 Construction work -in- progress 24,668,482 7,303,266 3,625,808 28,345,940 Total general fixed assets $ 120,635,650 S 7,553,424 S 3,665,377 $ 124,523,697 103 1 1 u 1 71 1 J 1 1 1 1 GENERAL LONG -TERM DEBT ACCOUNT GROUP The General Long Term Debt Account Group is a self - balancing account group which is used to account for unmatured general long -term debt and other obligations backed by the full faith and credit of the Borough except those long -term obligations which are required to be accounted for in the proprietary fund types and trust funds. ADDITIONAL INFORMATION BONDED INDEBTEDNESS The following schedules reflect total bonded indebtedness of the Borough by bond issue. Each issue outstanding is reflected by date, interest rate, inclusive bond numbers, and amount of principal and interest due. Total indebtedness is reflected on a summary page of all debts not defeased. KODIAK ISLAND BOROUGH EXHIBIT I -1 KODIAK, ALASKA SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY AS OF JUNE 30, 1998 Annual principal and interest requirements on General Obligation Refunding and Construction Bonds. Ye Princip Interest T 1999 $ 1,745,000 $ 1,035,416 $ 2,780,416 2000 1,840,000 934,398 2,774,398 2001 1,945,000 825,663 2,770,663 2002 825,000 752,058 1,577,058 2003 860,000 716,170 1,576,170 2004 900,000 678,330 1,578,330 2005 940,000 637,380 1,577,380 2006 980,000 592,730 1,572,730 2007 1,030,000 544,710 1,574,710 2008 1,085,000 489,090 1,574,090 2009 1,145,000 430,500 1,575,500 2010 1,205,000 368,670 1,573,670 2011 1,270,000 303,600 1,573,600 2012 1,340,000 233,750 1,573,750 2013 1,415,000 160,050 1,575,050 2014 1,49 82,224 1,577,224 $ 20, 02 0 ,000 $ 8, 784,739 $ 28,804,739 107 ISLAND BOROUGH EXHIBIT I -2 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 1161 have been retired. Bonds number 1162 through 2,000 bear interest at the rate indicated below. Bonds are retired serially in numerical order over a period of 10 years. Retirement date is August 1 of each year beginning in 1989. Bonds maturing in 1997 and after are callable beginning in 1997, and this call privilege may be exercised. This issue was marketed by John Nuveen & Co. of Chicago. Legal opinion was rendered by bond counsel, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage, Alaska. Bonds were issued to refund the 1980 issue. Bonds are payable at First Trust N.A., St. Paul, Minnesota $ 3,250,000 $ 231,353 $ 118,380 $ 3,599 * Maturities on and after August 1, 1997 are callable at any interest date thereafter. 108 Bond Principal Interest Interest Fiscal Interest Numbers Due Due Due Year Rate Inclus August 1 Augu 1 February 1 Tota 1999 6.90 1351 -1553 $ 1,015,000 $ 112,973 $ 77,955 $ 1,205,928 2000 6.95 1554 -1769 1,080,000 77,955 40,425 1,198,380 2001 7.00 1770 -2000 1,155,000 40,425 - 1,195,4 $ 3,250,000 $ 231,353 $ 118,380 $ 3,599 * Maturities on and after August 1, 1997 are callable at any interest date thereafter. 108 1 1 f 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 "If 1 X1:1'1 EXHIBIT 1 -3 KODIAK, ALASKA GENERAL OBLIGATION BONDS, 1993 SERIES A RETIREMENT SCHEDULE 1993 Bond Issue This issue, dated November 15, 1993, was issued as registered bonds under a book entry system registered in the name of Cede & Company, as Nominee of The Depository Trust Company, New York, New York, the securities depository for the 1993 Bonds. This issue was marketed by John Nuveen & Co. Legal opinion was rendered by bond council, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage, Alaska. These bonds were issued to build the Northstar Elementary School, remodel the Ouzinkie School, and remodel and expand the Kodiak Island Hospital. Bonds are payable at First Trust N.A., St. Paul, Minnesota. Fiscal Yea 1999 2000 2001 2002 2003 2004 2005 2006 Interest Principal Interest Interest Due Due Due Rate Augu 15 February 15 February 15 To tal 3.90 $ 149,889 $ 730,000 $ 149,889 $ 1,029,778 4.05 135,654 760,000 135,654 1,031,308 4.20 120,264 790,000 120,264 1,030,528 4.35 103,674 825,000 85 730 860,000 1Y 11 4.40 , 4.55 66,810 900,000 2 I L 4.75 46,335 940,000 ✓() ,�,�c,� � / n �� 4.90 24,01 980.000 $ 732,366 $ 6,7 85,000 l,. � i ll� I KODIAK ISLAND BOROUGH EXHIBIT I -4 KODIAK, ALASKA GENERAL OBLIGATION BONDS, 1994 SERIES A RETIREMENT SCHEDULE This issue, dated November 15, 1993, was issued as registered bonds under a book entry system registered in the name of Cede & Company, as Nominee of The Depository Trust Company, New York, New York, the securities depository for the 1994 Bonds. This issue was marketed by John Nuveen & Co. Legal opinion was rendered by bond council, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage, Alaska. These bonds were issued to build the Northstar Elementary School, remodel the Ouzinkie School, and remodel and expand the Kodiak Island Hospital. Bonds are payable at First Trust N.A., St. Paul, Minnesota. ffiff Interest Principal Interest Fiscal Interest Due Due Due Yea Ra Augus 1 5 February 15 Februa 1 5 Total 1999 $ 272,355 $ - $ 272,355 $ 544,710 2000 272,355 - 272,355 544,710 2001 272,355 - 272,355 544,710 2002 272,355 - 272,355 544,710 2003 272,355 - 272,355 544,710 2004 272,355 - 272,355 544,710 2005 272,355 - 272,355 544,710 2006 272,355 - 272,355 544,710 2007 5.40 272,355 1,030,000 272,355 1,574,710 2008 5.40 244,545 1,085,000 244,545 1,574,090 2009 5.40 215,250 1,145,000 215,250 1,575,500 2010 5.40 184,335 1,205,000 184,335 1,573,670 2011 5.50 151,800 1,270,000 151,800 1,573,600 2012 5.50 116,875 1,340,000 116,875 1,573,750 2013 5.50 80,025 1,415,000 80,025 1,575,050 2014 5.50 41,112 1 ,495,000 41,112 1, $ 3,485,137 $ 9,98 5,000 $ 3, 4 8 5,137 $ 16, 955,274 ffiff KODIAK ISLAND BOROUGH EXHIBIT 1 -5 KODIAK, ALASKA ASBESTOS REMOVAL LOAN PAYABLE RETIREMEN SCHEDULE This debt was incurred June 20, 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, Wolforth, Argetsinger, Johnson & Brecht of Anchorage, Alaska. Fiscal Yea 1999 2000 2001 2002 2003 2004 2005 Interest 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Principal Due December 3 $ 10,416 $ 10,417 10,416 10,417 10,416 10,417 10,417 $ 72,916 $ 62, 499 $ Interest Due* Total 10,416 $ - $ 20,832 10,417 - 20,834 10,416 - 20,832 10,417 - 20,834 10,416 - 20,832 10,417 - 20,834 - - 10,417 Principal Due June 30 - $ 135,415 * No interest is payable until a payment due is in default; then interest, penalties and fees become due. 1 1 J H s STATISTICAL SECTION Statistical Tables provide report users with a better historical perspective in assessing current financial status and trends of the Borough. 1 TABLE 1 KODIAK, ALASKA GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (a) LAST TEN FISCAL YEARS 113 Other Fiscal General Health and Operating Year Government Sanitation (b) Education (b) Transfers Total 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 6,973,609 1993 2,955,824 674,032 3,374,721 137,962 7,142,539 1994 2,555,349 690,430 3,615,695 322,228 7,183,702 1995 2,681,472 1,442,644 3,861,967 164,649 8,150,732 1996 2,941,453 1,390,307 4,678,830 267,594 9,278,184 1997 2,664,204 1,393,016 5,083,942 250,000 9,391,162 1998 2,848,473 1,506,992 6,466,321 571,296 11,393.082 (a) Includes general fund only. (b) Includes operating transfers for this function. Source: Borough general ledger 113 KODIAK ISLAND BOROUGH TABLE 2 KODIAK, ALASKA GENERAL REVENUES AND OTHER FINANCING SOURCES LAST TEN FISCAL YEARS (a) Includes general fund only. Source: Borough general ledger 114 Licenses, Inter - Fiscal Permits Governmental Investment Operating Year Taxes and Fees Revenue Income Transfers Total 1989 $ 2,515,436 $ 95,748 $3,449,948 $ 354,523 $ 56,410 $6,472,065 1990 2,640,044 120,145 1,316,238 540,851 68,790 4,686,068 1991 2,823,929 100,868 2,255,951 456,381 173,230 5,810,359 1992 4,067,934 212,936 2,450,339 367,551 81,670 7,180,430 1993 4,481,158 433,825 1,991,730 289,570 - 7,196,283 1994 4,674,382 457,895 2,053,750 291,046 - 7,477,073 1995 5,976,914 928,079 1,633,162 659,794 - 9,197,949 1996 5,693,539 285,100 2,396,704 452,196 - 8,827,539 1997 5,582,037 108,483 2,396,272 371,414 9,672 8,467,878 1998 7,589,594 195,425 2,739,075 389,252 - 10,913,346 (a) Includes general fund only. Source: Borough general ledger 114 KODIAK ISLAND BOROUGH KODIAK, ALASKA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS TABLE 3 Source: Borough general ledger offil Percent of Percent of Percent of Current Delinquent Total Tax Outstanding Delinquent Fiscal Total Current Tax Levy Tax Total Tax Collections Delinquent Taxes to Year Tax Levy Collections Collected Collections Collections to Tax Levy Taxes Tax Levy 1989 $1,991,902 $1,987,251 99.8 S 4,474 $1,991,725 99.9 S 21,136 1.1 1990 2,034,500 2,017,190 99.1 12,351 2,029,541 99.8 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 88,284 2.4 1993 4,045,235 3,907,612 96.6 60,633 3,968,245 98.1 169,584 4.2 1994 4,353,371 4,176,676 95.9 21,295 4,197,971 96.4 193,624 4.4 1995 5,141,728 4,955,108 96.4 56,140 5,011,248 97.5 232,679 4.5 1996 5,466,066 5,249,168 96.0 56,531 5,305,699 97.1 289,210 5.3 1997 5,576,773 5,478,939 98.2 96,490 5,575,429 100.0 192,722 3.5 1998 7,384,490 7,121,678 96.4 77,576 7,199,254 97.5 381,180 5.2 Source: Borough general ledger offil KODIAK ISLAND BOROUGH TABLE 4 KODIAK, ALASKA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Source: Borough assessment and tax records Last Ten Years Assessed Values 800,000,000 , 600, 000, 000 1 1I s11 200, 000, 000 116 0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Ratio of Total Assessed to REAL PROPERTY PERSONAL PROPERTY TOTAL Total Fiscal Assessed Estimated Assessed Estimated Assessed Estimated Estimated Actual Year Value Actual Value Value Actual Value Value Actual Value Value 1989 379,969,521 390,550,900 48,795,064 204,075,100 428,764,585 594,626,000 72,11 1990 378,072,396 415,666,660 58,727,868 229,477,103 436,800,264 645,143,763 67.71 1991 406,433,607 435,940,500 73,508,740 267,181,594 479,942,347 703,122,094 68.26 1992 439,710,369 457,383,400 76,594,500 280,085,100 516,304,869 737,468,500 70.01 1993 467,821,217 497,758,275 91,537,867 331,544,400 559,359,084 829,302,675 67.45 1994 499,172,455 517,754,900 92,264,018 325,842,100 591,436,473 843,597,000 70,11 1995 515,954,650 539,053,753 98,616,145 319,052,138 614,570,795 858,105,891 7162 1996 538,627,500 560,459,900 101,835,076 318,741,600 640,462,576 879,201,500 7185 1997 549,456,964 565,281,400 104,677,687 312,465,100 654,134,651 877,746,500 74.52 1998 573,742,998 587,145,000 107,599,894 310,049,900 681,342,892 897,194,900 75.94 Source: Borough assessment and tax records Last Ten Years Assessed Values 800,000,000 , 600, 000, 000 1 1I s11 200, 000, 000 116 0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1 1 1 1 1 i 1 TABLE 5 KODIAK, ALASKA PROPERTY TAX RATES AND CONTRIBUTIONS TO THE SCHOOL DISTRICT (PER $100 OF ASSESSED VALUE) LAST TEN FISCAL YEARS Fiscal Assessed Amount of Woodland Year Value Contribution Equivalent 1989 $ Acres $ 2,880,982 6.72 1990 436,800,264 2,869,558 6.57 1991 KIB City Street ROAD SERVICES AREAS 3,779,444 FIRE AREAS Fiscal General of Lighting Monashka Service Bay View Womens Service Womens Year Fund Kodiak Area Bay District 1 Road Bay Area No. I Bay 1989 4.50 2.00 0.00 2.00 0.25 1.50 1.50 1.50 0.25 1990 4.50 2.00 0.00 1.25 0.70 1.00 1.50 1.25 1.25 1991 4.50 2.00 0.75 2.00 1.00 1.00 2.50 1.25 1.25 1992 5.50 2.00 0.75 2.00 1.75 1.00 2.50 1.25 1.25 1993 5.50 2.00 0.75 2.00 1.75 1.00 2.50 1.25 1.25 1994 5.50 2.00 0.75 2.00 1.75 1.00 2.50 1.50 1.25 1995 6.75 2.00 0.75 1.50 1.75 1.00 2.00 1.50 1.25 1996 6.75 2.00 0.50 1.75 1.75 1.00 2.00 1.50 1.25 1997 6.75 2.00 0.50 1.50 1.75 1.00 2.00 1.50 1.25 1998 9.25 2.00 0.50 1.50 0.75 1.00 2.00 1.50 1.25 Fiscal Assessed Amount of Millage Year Value Contribution Equivalent 1989 $ 428,764,585 $ 2,880,982 6.72 1990 436,800,264 2,869,558 6.57 1991 479,942,347 2,944,606 6.14 1992 516,304,869 3,779,444 7.32 1993 559,359,084 3,723,411 6.66 1994 591,436,473 3,795,847 6.42 1995 614,570,795 3,969.399 6.46 1996 640,462,576 4,773,968 7.45 1997 654,134,651 5,199,877 7.95 1998 681,342,892 6,222,261 9.13 Source: Borough ordinance and assessment 117 KODIAK ISLAND BOROUGH KODIAK, ALASKA TEN LARGEST PROPERTY TAXPAYERS YEAR ENDED JUNE 30, 1998 TABLE 6 International Seafoods Tyson Seafoods Western Alaska Fisheries Ocean Beauty Seafood Alaska Pacific Seafoods Sea -Land Services T.U. of the Northland Kodiak Fishmeal Co. Safeway /MBPA Leisnoi Totals Source: Borough tax records Percentage Percentage of Total 1997 Net of Total Assessed Assessed Taxes Taxes Value Valuation Levied Levied 2.1% $ 14,062,209 $ 146,649 2.6% 2.0% 13,829,068 140,531 2.5% 1.7% 11,299,304 115,026 2.1% 1.5% 10,263,993 110,436 2.0% 1.5% 10,120,028 101,961 1.8% 1.4% 9,437,400 101,806 1.8% 1.5% 10,299,432 99,256 1.8% 1.3% 9,091,653 89,139 1.6% 1.2% 8,099,123 87,720 1.6% 1.0% 7,035,900 65,082 1.2% 15.2% $ 103,538,110 $ 1,057,607 19.0% 118 KODIAK ISLAND BOROUGH KODIAK, ALASKA RATIO OF NET GENERAL BONDED DEBT (a) LAST TEN FISCAL YEARS TABLE 7 WE Ratio Net of Net Bonded Less Debt Bonded Debt Debt Fiscal Assessed Gross Service Net Bonded to Assessed Per Year —Population (b) Value Bonded Debt Fund Debt Value Capita 1989 15,575 $428,764,585 $17,550,000 $5,310,721 $12,239,279 2.9 786 1990 1b) 15,558 436,800,264 15,310,000 6,683,745 8,626,255 2.0 554 1991 15,679 479,942,347 13,735,000 7,307,730 6,427,270 1.3 410 1992 15,535 516,304,869 12,195,000 6,556,480 5,638,520 1.1 363 1993 15,535 559,359,084 10,470,000 5,847,171 4,622,829 0.8 298 1994 15,245 591,436,473 27,915,000 4,133,559 23,781,441 4.0 1,560 1995 15,575 614,570,795 25,665,000 2,075,768 23,589,232 3.8 1,515 1996 15,400 640,462,576 23,205,000 1,759,644 21,445,356 3.3 1,393 1997 14,058 654,134,651 21,660,000 549,569 21,110,431 3.2 1,502 1998 14,181 681,342,892 20,020,000 432,942 19,587,058 2.9 1,381 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 Community Development Department based on the "Housing Unit Method." (c) Information obtained from State of Alaska, Department of Community and Regional Affairs, Certified Population for Revenue Sharing Program. WE KODIAK ISLAND BOROUGH TABLE 8 KODIAK, ALASKA COMPUTATION OF DIRECT AND OVERLAPPING DEBT AS OF JUNE 30, 1998 Percentage Kodiak Island Net Debt Applicable to this Borough Outstanding Governmental Share of (a) Unit (b) Debt (c) Kodiak Island Borough: General obligation bonds S 19,587,058 100% S 19,587,058 City of Kodiak: General obligation bonds - Revenue bonds 4,583,530 100% 4,583,530 Total S 24,170,588 S 24,170,588 (a) Gross debt outstanding less applicable amounts in the Debt Service Funds. (b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to valuation of property subject to taxation in reporting unit. (c) Under Alaska Statutes Title 29, there is no limitation on municipal debt. Sources: Borough general ledger and City of Kodiak records 120 1 r 1 1 1 1 i A 1 t KODIAK, ALASKA COMPUTATION OF LEGAL DEBT MARGIN AS OF JUNE 30, 1998 TABLE 9 Assessed value Plus exempt property Total The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions. Debt capacity is ultimately determined by the voters and the marketplace. Source: Borough assessment records $ 681,342,892 2,420,544,252 $ 3,101,887,144 121 KODIAK ISLAND BOROUGH KODIAK, ALASKA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES AND TRANSFERS LAST TEN FISCAL YEARS Fiscal Interest Year Principal (a) and Fees 1989 $ 5,135,833 $ 1,502,762 Total Debt Total General Expenditures $ 6,638,595 $ 5,622,560 Ratio of Debt Service to General Expenditures 118.1 1990 2,260,833 978,583 3,239,416 5,803,292 55.8 1991 1,595,834 1,019,401 2,615,235 6,016,756 43.5 1992 1,685,833 1,008,918 2,694,751 6,973,603 38.6 , 1993 1,745,833 736,357 2,482,190 7,142,539 34.8 1994 1,775,833 690,170 2,466,003 7,162,545 34.4 1995 2,270,833 1,760,185 4,031,018 8,150,732 49.5 1996 2,480,833 1,386,681 3,867,514 9,278,184 41.7 1997 1,565,833 1,239,996 2,805,829 9,391,162 29.9 1998 1,660,833 1,141,366 2,802,199 11,393,082 24.6 (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 122 1 t 1 i 1 1 1 1 1 9 t 1 I 1 1 1 1 KODIAK ISLAND BOROUGH KODIAK, ALASKA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEA TABLE 11 123 Fiscal School Unemployment Year Population (a) Enrollment (b) Rate (c) 1989 15,575 2,349 6.2 1990 15,558 2,381 5.6 1991 15,679 2,486 8.2 1992 15,535 2,602 5.1 1993 15,535 2,632 6.0 1994 15,245 2,802 9.4 1995 15,575 2,773 11.2 1996 15,400 2,793 13.7 1997 14,058 2,809 7.7 1998 14,181 2,897 8.2 Sources: (a) 1990 per U.S. Bureau of Census; other years per Borough Community Development Department, except 1992 and 1993. 1996,1997 and 1998 data per State of Alaska, DCRA certified population. (b) Kodiak Island Borough School District. (c) Department of Labor, Anchorage. 123 KODIAK ISLAND BOROUGH TABLE 12 KODIAK, ALASKA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS CONSTRUCTION PROPERTY VALUE* *Estimated actual value of real property. Source: Borough assessing records, City of Kodiak building department and local bankers. 124 Commercial Residential Deposits Fiscal No. of No. of in Local Year Permits Value Permits Value Banks Commercial Residential Nontaxable 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 1993 55 3,359,264 143 6,218,434 94,838,546 148,714,050 350,458,405 2,271,468,957 1994 45 2,947,984 146 5,037,061 98,970,444 148,156,300 367,798,350 2,354,550,201 1995 59 6,055,321 159 4,305,352 103,838,289 155,755,000 382,872,500 2,404,513,974 1996 41 3,862,599 160 7,864,907 108,116,331 157,911,064 391,545,900 2,404,872,414 1997 36 1,559,938 112 6,262,439 108,926,259 161,787,264 411,955,734 2,420,596,952 1998 39 16,676,612 149 8,103,624 107,973,700 160,921,064 416,630,645 1420,601,099 *Estimated actual value of real property. Source: Borough assessing records, City of Kodiak building department and local bankers. 124 ■s � � r � r � � r r ar r �r � r � r � r KODUAK_I -L A BOROUGH TABLE 13 KODIAK, ALASKA MISCELLANEOUS STATISTICAL DATA LAST TEN FISCAL YEARS Date of incorporation - September 30, 1963, Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended, Form of Government - Mayor /Assembly. 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Land area - square miles 7130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7130 7130 Miles of improved street 21.5 21.5 21.5 21.5 21.5 21.6 21.6 21.6 24.7 243 Miles of sanitary sewers 16.0 16.0 16.0 16.0 16.7 16.8 17 17 0 (c) 0 Number of water taps 748 748 748 873 877 913 921 921 0 (c) 0 Number of sanitary sewer taps 727 727 727 851 858 891 899 899 0 (c) 0 Building permits: Number of playgrounds 15 Permits issued 153 122 221 211 108 191 218 201 148 188 Value of'huildings (thousands) $7,596.10 $9,819.30 $9,398.90 $12,950.00 $9,577.70 $4,740.00 $10,360.00 $11,727.50 $7,822.40 $24.780.24 Dire protection: Number of fire stations 2 2 2 2 2 2 2 2 2 2 Number ofemployees 1 i 1 1 I 1 1 I 1 1 Police protection - none Recreation: ['arks - number of acres 223 223 223 223 223 223 223 224 224 224 Facilities: Number of playgrounds 15 15 15 15 15 15 15 16 16 16 Number of swimming pools 1 I I 1 I I I 1 I I Education: N Number of schools: v, City of Kodiak Elementary 3 3 3 3 3 3 3 4 4 4 City of Kodiak Junior high I I 1 I I I I 1 I I City of Kodiak High School I I 1 1 I I I I I I Village Schools (a) 8 8 9 9 9 9 9 9 9 9 Number of personnel (b) Administration 6 6.9 7 6 5 5 5 6 6 5.2 Principals 8.7 8.3 9.5 9.5 9.5 9.5 II 12 11.65 11.41 Teachers 1 59.8 1 57.85 165.5 166.3 172.4 180 185.3 183.8 188.48 179.6 Technical 6.25 6.25 6.5 6.5 6.5 6.5 6.5 3 3.48 8.99 Clerical and Aides 72.8 70.72 70.1 64.1 75.3 81.3 73.3 61.7 63.68 72.68 Maintenance/Warehouse 19.9 19.9 18.8 19.2 19.1 19.1 19.7 12 9 10 Custodial 24.3 23.16 23.4 21.2 21.2 21.7 21.6 22.5 26.27 27.62 Food Service 6.2 8.4 8.8 8.4 8.3 8.3 8.5 3.7 4.19 6.29 Total number of personnel 303.95 301.48 309.6 301.2 317.3 331.4 330.9 3043 31235 321.79 Number of students 2,349 2,381 2,486 2,602 2,632 2,802 2,773 2,793 2809 2897 Number of municipal employees 66 70 75 72 67 64 65 63 63 50 Elections: Number of'registered voters 6,150 6,352 6,707 6,263 6,654 7,061 7,382 8,217 9350 9967 Numbervoting in last election 1,459 2,327 1,959 1,986 2,328 2,634 2,113 1,471 2120 2076 Percent of registered voters 23.7% 37.0% 29.0% 31.8% 35.0% 37.0% 29.0% 29.0% 22.70% 20.8% (a) The majority of Village Schools are grades K -12. (b) Based on full time equivalents. (c) As of July 1, 1996 the City of Kodiak assumed ownership, maintenance, and operation of the existing water and sewer utilities in Service District. Source: Borough records