Polar Bear
Photograph by John Tidwell
NORTH SLOPE BOROUGH, ALASKA
Comprehensive Annual Financial Report
June 30, 2014
CHARLOTTE E. BROWER
Mayor
ROB ELKINS
Director of Administration & Finance
PEARL KIYAWN BROWER
President of Ilisagvik College
PEGGY COWAN
Superintendent of Schools
PREPARED BY:
Department of Administration & Finance
NORTH SLOPE BOROUGH, ALASKA
Table of Contents
Page(s)
Introductory Section (Unaudited):
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
Organizational Chart
The Principal Officials
Financial Section:
Independent Auditors’ Report
Management’s Discussion and Analysis (Unaudited)
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position
Statement of Activities
Fund Financial Statements:
Balance Sheet – Governmental Funds
Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental
Funds
Reconciliation of Governmental Funds Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Statement of Activities
Statement of Net Position – Proprietary Funds – Enterprise Funds
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds –
Enterprise Funds
Statement of Cash Flows – Proprietary Funds – Enterprise Funds
Statement of Fiduciary Net Position – Fiduciary Fund – Pension Trust Fund
Statement of Changes in Fiduciary Net Position – Fiduciary Fund – Pension Trust Fund
Notes to Financial Statements
i – iv
v
vi
vii
1–3
4 – 17
18
19
20
21
22
23
24
25
26
27
28
29 – 60
Required Supplementary Information (Unaudited):
Budgetary Comparison Schedule – General Fund
61
Supplementary Information:
Nonmajor Governmental Funds:
Notes to Nonmajor Governmental Funds
Combining Balance Sheet
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
62
63
64
NORTH SLOPE BOROUGH, ALASKA
Table of Contents
Page(s)
Special Revenue Funds:
Notes to Special Revenue Funds
Combining Balance Sheet
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
65
66
67
Capital Projects Funds:
Notes to Capital Projects Funds
Combining Balance Sheet
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
68
69 – 72
73 – 76
Nonmajor Enterprise Funds:
Notes to Nonmajor Enterprise Funds
Combining Statement of Net Position
Combining Statement of Revenues, Expenses, and Changes in Net Position
Combining Statement of Cash Flows
77
78
79
80
Statistical Section (Unaudited):
Statistical Section
Net Position by Component – Last Nine Fiscal Years
Changes in Net Position – Last Nine Fiscal Years
Fund Balances, Governmental Funds – Last Nine Fiscal Years
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years
Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years
Property Tax Rates – Last Ten Fiscal Years
Principal Taxpayers – Current Year and Nine Years Ago
Property Tax Levies and Collections – Last Ten Fiscal Years
Water Sold by Type of Customer – Last Ten Fiscal Years
Water and Electric Rates – Last Ten Fiscal Years
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years
Ratios of Net General Bonded Debt Outstanding – Last Ten Fiscal Years
Governmental Activities Debt – June 30, 2014
Legal Debt Margin Information – Last Ten Fiscal Years
Pledged Revenue Coverage – Last Ten Fiscal Years
Demographic and Economic Statistics – Last Ten Fiscal Years
Demographic and Economic Statistics – 2013 Borough Employers by Industry
Full-Time Equivalent Borough Employees by Function/Program – Last Ten Fiscal Years
Operating Indicators by Function/Program – Last Ten Fiscal Years
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
North Slope Borough
OFFICE OF THE MAYOR
P.O. Box 69
Barrow, Alaska 99723
Phone: 907 852-2611 or 0200
Fax: 907 852-0337 or 2595
Email: [email protected]
Charlotte E. Brower, Mayor
December 29, 2014
Members of the Assembly
North Slope Borough, Alaska
State of Alaska statutes and local charter provisions require that all general-purpose local governments
publish a complete set of financial statements presented in conformity with U.S. Generally Accepted
Accounting Principles (GAAP) and audited in accordance with auditing standards generally accepted in
the United States of America by a firm of licensed certified public accountants. Pursuant to that
requirement, we hereby issue the comprehensive annual financial report of the North Slope Borough
(Borough) for the fiscal year ended June 30, 2014.
This report consists of management’s representations concerning the finances of the Borough.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations,
management of the Borough has established a comprehensive internal control framework that is designed
both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the Borough’s financial statements in conformity with GAAP. Because
the cost of internal controls should not outweigh their benefits, the Borough’s comprehensive framework
of internal controls has been designed to provide reasonable rather than absolute assurance that the
financial statements will be free from material misstatement. As management, we assert that, to the best
of our knowledge and belief, this financial report is complete and reliable in all material respects.
The Borough’s financial statements have been audited by KPMG LLP, a firm of licensed certified public
accountants. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the Borough for the fiscal year ended June 30, 2014 are free of material misstatement. The
independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent auditor
concluded based upon the audit that there was a reasonable basis for rendering an unmodified opinion that
the Borough’s financial statements for the fiscal year ended June 30, 2014, are fairly presented in
conformity with GAAP. The independent auditors’ report is presented as the first component of the
financial section of this report.
The independent audit of the financial statements of the Borough was part of broader state and federally
mandated “Single Audits” designed to meet the special needs of state and federal grantor agencies. The
standards governing Single Audit engagements require the independent auditor to report not only on the
fair presentation of the financial statements, but also on the audited government’s internal controls and
compliance with legal requirements, with special emphasis on internal controls and legal requirements
i
involving the administration of state and federal awards. These reports are available in the Borough’s
separately issued Single Audit Report.
GAAP require that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter
of transmittal is designed to complement MD&A and should be read in conjunction with it. The
Borough’s MD&A can be found immediately following the report of the independent auditors.
Profile of the Government
The Borough encompasses an area of approximately 94,000 square miles in northern Alaska, north of the
Arctic Circle. It extends 650 miles east from Point Hope on the Chukchi Sea to the Canadian Border and
225 miles south from Point Barrow, the most northern point in the state. Prudhoe Bay, the largest oil field
in the United States, is located in the northeastern portion of the Borough. It is also the origination point
of the 800-mile Trans-Alaskan pipeline, which terminates at the City of Valdez on Prince William Sound.
Most of the Borough’s 7,702 permanent residents live in eight communities, the largest of which is
Barrow, which also serves as the Borough seat of government. Another 11,138 people are counted as
residents because they work at least half of the calendar year in the North Slope oil fields.
The Borough was incorporated on July 1, 1972, and on April 30, 1974, it adopted its Home Rule Charter,
which allows it to exercise any legal governmental power in addition to its mandatory powers of taxation,
property assessment, education, and planning and zoning services. The legislative power of the Borough
is vested in a seven-member assembly body, elected to staggered three-year terms. The Borough’s
executive and administrative powers are vested in a mayor, limited to two consecutive three-year terms.
The Borough provides a full range of services including police and fire protection, search and rescue
services, the construction and maintenance of roads and other infrastructure, sewers and sewage
treatment, light, power and heat, health services and clinic facilities, fuel storage, water, and garbage and
solid waste collection and disposal. The Borough also is financially accountable for a legally separate
school district and a legally separate college, both of which are reported separately within the Borough’s
financial statements. Additional information on these legally separate entities can be found in the basic
financial statements.
The annual budget serves as the foundation for the Borough’s financial planning and control. All
departments of the Borough are required to submit requests for appropriation to the Borough Mayor. The
Mayor uses these requests as the starting point for developing a proposed budget. The Mayor then
presents this proposed budget to the Assembly for review prior to March 15. The Assembly is required to
hold public hearings on the proposed budget and to adopt a final budget by no later than May 1. The
appropriated budget is prepared by fund and department. The Mayor may make transfers of
appropriations within a department and transfers of appropriations between departments; however
transfers to the education function and debt service or for cash deficits require the special approval of the
Assembly. Budget-to-actual comparisons are provided in this report for the General Fund. This
comparison is presented as part of the required supplementary information.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the specific environment within which the Borough operates.
Local economy – Since 1968, oil and gas exploration and development on Alaska’s North Slope has
become the principal industry in the Borough and the employer of the bulk of the Borough’s workforce.
ii
The other service providers, including the government sector, exist primarily due to the presence of the oil
and gas industry.
The Borough has an employed labor force of approximately 20,000, which is growing due to increased
activity in the oil and gas industry.
Long-term financial planning – Since 1993, the Borough has used a sophisticated projection model to
create a 12-year forecast of property tax revenues. This forecast is used to plan for future operating and
capital expenditures as well as to insure adequate resources are available to repay bonded debt. Fiscal
year 2015 assessed property values of $19.153 billion are forecasted to remain strong for the next 12
years. These assessed property values assumptions are based on estimates provided by an in-house
petroleum engineer with over 33 years of experience monitoring oil and gas development in Alaska.
Relevant financial policies – The Borough adheres to financial policies to support strategic goals, ensure
stability in service delivery, and promote efficient use of public funds. It is the Borough’s policy to
maintain reserve funds, which can be used to reduce the impact of substantial revenue fluctuations, thus
providing more stable delivery of services to Borough residents. In the financial statements, these can be
observed as part of cash and cash equivalents as well as fund balance.
Major initiatives – In response to community concerns over the need to perform medical evacuation
flights in winter weather conditions the Borough has committed to modernizing the existing fleet of
helicopters. The replacement aircraft are expected to have extended range, the ability to overcome blade
icing and other winter weather hazards, and the ability to land in remote locations or on sea ice. Studies
have determined the type of aircraft that best meets community needs, and negotiations to procure this
asset at the lowest possible price have commenced. Over the course of the fleet modernization, the
Borough expects to invest approximately $38 million.
Because many residents struggle to access education and employment opportunities due to shortages of
reliable childcare resources, the Borough has entered into community partnerships to develop childcare
facilities and train childcare providers. The project is developing pilot sites in Nuiqsut and Barrow with
the goal of serving every North Slope Community. This project has initial capital funding of $2 million
for the purpose of upgrading facilities to meet State and local licensing requirements.
Due to increased demand for services and the overall growth of oil and gas development in Prudhoe Bay,
the Borough has committed to building new water and waste water treatment facilities. This project is
ongoing and the new plant facility has completed foundation work and the exterior shell. Work to
construct all required infrastructure is in process, and is expected to be completed in the fall of 2015. All
required project work for the plant is expected to be completed by fall of 2015, when it is expected to be
placed into service. The overall investment of this infrastructure is expected to be approximately $75
million.
Due to the previously stated increased demand for services, and growth of oil and gas development in
Prudhoe Bay, the Borough has committed to expanding the Oxbow Landfill, and improving the solid
waste reduction infrastructure associated with the landfill. A 95% design on the expansion is complete
and construction is expected to begin in early 2015. The expansion of the Oxbow Landfill is expected to
be completed and in service in 2015, with the overall cost to be approximately $25 million.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Borough for its comprehensive
iii
annual financial report (CAFR) for the fiscal year ended June 30, 2013. This was the thirty-first year that
the Borough has received this prestigious award. In order to be awarded a Certificate of Achievement for
Excellence in Financial Reporting, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only.
We believe that our current CAFR continues to meet the Certificate of Achievement Program’s
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated services of
the entire staff of the administration and finance department. We would like to express our appreciation to
all members of the department who assisted and contributed to the presentation of this report. Credit also
must be given to the Mayor and the Assembly for their unfailing support for maintaining the highest
standards or professionalism in the management of the Borough’s finances.
Respectfully submitted,
Charlotte E. Brower
Mayor
Rob Elkins
Director of Administration & Finance
iv
v
vi
NORTH SLOPE BOROUGH, ALASKA
The Principal Officials
Assembly:
President
Vice President
Forrest “Deano” Olemaun
Mike Aamodt
John Hopson, Jr.
Vernon J. Edwardsen
Doreen Ahgeak Lampe
Dwayne Hopson, Sr.
Herbert Kinneeveauk, Jr.
General Government:
Mayor
Charlotte E. Brower
Chief Administrative Officer
Borough Attorney
Director of Administration & Finance
Borough Clerk
Jacob Adams, Sr.
Lauren Berdow
Rob Elkins
Jeannie Brower
Superintendent of Schools
Peggy Cowan
School Board:
President
Clerk
Eva Kinneeveauk
Amos J. Nashookpuk
Arnold Bower, Jr.
Debby Edwardson
Mary Sage
Roy Nageak, Sr.
Della Tagarook
President of Ilisagvik College
Pearl Kiyawn Brower
Ilisagvik College Board
Chairperson
Vice Chairperson
Treasurer
Secretary
Ida Angasan
Elsie Itta
Amos J. Nashookpuk
Lillian Lane
Roxanne Brower
Roy Nageak, Sr.
Bill Tracey
James Nageak
Thomas Napageak
vii
FINANCIAL SECTION
KPMG LLP
Suite 600
701 West Eighth Avenue
Anchorage, AK 99501
Independent Auditors’ Report
The Honorable Mayor and Members of the Assembly
North Slope Borough, Alaska:
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the North Slope Borough, Alaska (the Borough), as of and for the year
ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the
Borough’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with U.S. generally accepted accounting principles; this includes the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit
the financial statements of the aggregate discretely presented component units. Those financial statements
were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as
it relates to the amounts included for the aggregate discretely presented component units, is based on the
report of the other auditors. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
KPMG LLP is a Delaware limited liability partnership,
the U.S. member firm of KPMG International Cooperative
(“KPMG International”), a Swiss entity.
Opinions
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of the North Slope Borough, Alaska, as of June 30,
2014, and the respective changes in financial position, and where applicable, cash flows thereof for the
year then ended in accordance with U.S. generally accepted accounting principles.
Emphasis of a Matter
Change in Accounting Principle
As discussed in note 1 to the basic financial statements, in 2014 the Borough adopted new accounting
guidance as contained in Governmental Accounting Standards Board Statement No. 65, Items Previously
Reported as Assets and Liabilities. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
U.S. generally accepted accounting principles require that the management’s discussion and analysis and
budgetary comparison information on pages 4-17 and 61 be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Borough’s basic financial statements. The accompanying supplementary information in the
financial section and the statistical section are presented for purposes of additional analysis and are not a
required part of the basic financial statements. The supplementary information in the financial section is
the responsibility of management and were derived from and relate directly to the underlying accounting
and other records used to prepare the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the supplementary information in the financial section is fairly stated in all
material respects in relation to the basic financial statements as a whole.
The statistical section has not been subjected to the auditing procedures applied in the audit of the basic
financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
2
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 29,
2014 on our consideration of the Borough’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the Borough’s internal control over financial reporting
and compliance.
December 29, 2014
3
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)
As management of the North Slope Borough (Borough), we offer readers of the Borough’s financial
statements this narrative overview and analysis of the financial activities of the Borough for the fiscal
year ended June 30, 2014. We encourage readers to consider the information presented here in
conjunction with additional information furnished in the letter of transmittal, which begins on page i of
this report, and the financial statements that begin on page 18.
Financial Highlights

The Borough’s total net position increased by $196,587,246 to $2,403,210,358 for FY 2014.

At the end of FY 2014, the Borough’s governmental funds reported combined ending fund balances
of $967,065,075 an increase of $96,817,105 in comparison with the prior year. The increase is due
to proceeds from the sale of General Obligation bonds. Additionally, there was a gain from
investment earnings of the Permanent Fund of approximately $83.1 million.

At the end of FY 2014, unassigned fund balance for the General Fund was $130,747,583 or 31.08%
of total General Fund expenditures.

The Borough’s long-term bond obligations increased by approximately $18.5 million during FY
2014. This is primarily due to the issuance of revenue bonds Series 2014 in the amount of $62.2
million. The overall long-term obligations decreased by approximately $1 million due to a net
decrease in general obligations bonds payable of $47.4 million. Additionally, the remaining $15.7
million in accreted principal on capital appreciation bonds was liquidated in FY 2014.

The Borough's primary government reported available cash and investments with central treasury
at $778,307,762 an increase of $16,490,787 from prior year.

The Borough's primary government reported other liabilities at $18,444,539 a decrease of
$24,406,792. This is due to the change in the unsettled trade payables from FY 2013 in the amount
of approximately $25 million. There were no unsettled trade payables in FY 2014.
Overview of the Financial Statements
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
Borough’s finances, in a manner similar to a private-sector business.
The statement of net position presents information about all of the Borough’s assets and liabilities, with
the difference between the two reported as net position. Over time, increases or decreases in net position
is one indicator of whether the financial position of the Borough is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
4
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods.
Both of the government-wide financial statements distinguish functions of the Borough that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the Borough include general
government, public safety, municipal services, housing, wildlife management, health and social services,
and primary and secondary education. The business-type activities of the North Slope Borough include a
solid waste disposal and treatment facility, a revolving loan program, a real property management
program, and an electric utility.
The government-wide financial statements include not only the Borough itself (known as the primary
government), but also a legally separate school district and a legally separate college for which the
Borough is financially accountable. Financial information for these component units is reported
separately from the financial information presented for the primary government itself.
The government-wide financial statements can be found on pages 18 – 19 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The Borough, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the Borough can be divided into three categories: governmental funds, proprietary funds, and
fiduciary funds.
Governmental funds – Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide statements, governmental fund financial statements focus on near-term inflows and
outflows of spendable resources as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental fund financial statements is narrower than that of the governmentwide financial statements, it is useful to compare the information presented for governmental funds with
similar information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental fund balance sheet and governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The Borough maintains 24 individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
5
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)
changes in fund balances for the General Fund, Power and Light Fund, Real Property Management Fund,
Service Area 10, and the Permanent Fund, all of which are considered to be major funds. Data from the
other nonmajor funds are combined into a single, aggregated presentation.
The Borough adopts an annual appropriated budget for its General Fund. A budgetary comparison
statement has been provided for the General Fund to demonstrate compliance with this budget on page
61.
The basic governmental financial statements can be found on pages 20 – 23 of this report.
Proprietary funds – The Borough maintains four proprietary funds. Enterprise funds are used to report
the same functions presented as business-type activities in the government-wide financial statements. The
Borough uses enterprise funds to account for a Prudhoe Bay solid waste disposal and treatment facility
(Service Area 10), a revolving loan fund (Home Assistance Loan), an electric utility (Power and Light),
and the Real Property Management Fund.
Proprietary fund financial statements provide the same type of information as government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate information
for each major and combined nonmajor proprietary fund noted above.
The basic proprietary fund financial statements can be found on pages 24 – 26 of this report.
Fiduciary funds – Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statements because
the resources of those funds are not available to support the Borough’s own programs. The accounting
used for fiduciary funds is much like that used for proprietary funds.
The Borough has only one fiduciary fund, the Pension Trust fund, whose basic fiduciary fund financial
statements can be found on pages 27 – 28 of this report.
Notes to the financial statements – The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements can be found on pages 29 – 60 of this report.
Other information – In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information. The Borough’s budgetary comparison schedule
for the General Fund can be found on page 61.
6
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)
Government-Wide Financial Analysis
Statement of Net Position
As noted earlier, changes in net position over time may serve as a useful indicator of a government’s
financial position. In the case of the Borough, net position increased, growing by $196.6 million in FY
2014 to a total of $2.4 billion.
Statement of Net Position
2.50
Billion $
2.00
1.50
Net Position
1.00
0.50
FY
FY
FY
FY
FY
FY
FY
2008 2009 2010 2011 2012 2013 2014
The reason for this upward growth is primarily due to investment earnings in the Permanent Fund of
approximately $83 million in the current year. Additionally, there was an increase of $18.7 million in
property tax revenues.
The Permanent Fund was established in 1984 as a trust fund governed by the Assembly and administered
by the Mayor, to provide a savings account for the future when property taxes on oil and gas properties
decline. Up to 8% of the three-year rolling average total value of the fund is available to be transferred to
the General Fund on an annual basis. The principal amount of contributions and growth of the fund in
excess of annual transfer to the General Fund remain in the fund. The overall positive fund performance
for FY 2014 resulted in a significant gain of approximately $83 million. The Assembly set the FY 2014
transfer at 4% or $18.6 million. The combination of market gains less transfers resulted in a $65.1 million
increase in value of the Permanent Fund. The Permanent Fund had an asset value of $572.9 million at
fiscal year-end.
To understand the significance of the capital program, it is critical to understand the unique financial and
tax structure of the Borough. The legal right of the Borough to levy taxes for operations is limited by
Alaska Statute to a maximum of 225% of the average statewide per capita assessed value multiplied by
the statutory maximum rate of 30 mills. For FY 2014, the operating tax cap was calculated as follows:
7
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)
Calculation of Operating Tax Cap:
Calculation of O&M Budget Tax Cap
Per capita average full property tax value
Average value multiplier per Alaska statutes
Average full value
NSB population
Equivalent tax base
Maximum O&M Mills per statute
Operating budget levy allowed
$
$
FY 2014
140,307
225 %
315,691
18,436
5,820,074,667
30 %
174,602,240
When the limit is applied to the actual full and true value of property within the Borough of
$19.238 billion, the result is an effective tax rate of 9.42 mills allowable for operations.
Statutory provisions, however, exempt tax revenues collected for the repayment of debt from the cap
limitations. In order to take advantage of these tax revenues, the Borough systematically sells and repays
General Obligation bonds on a 10-year repayment schedule. This allowed the Borough to levy an
additional 9.08 mills for debt reimbursement in FY 2014. Because revenues collected for debt
reimbursement cannot be used for any other purpose, and the proceeds of the General Obligation bonds
must be used for capital improvements, the Borough has established a program of capital improvements
that has offset depreciation and resulted in continual growth in net assets, even in years where the
operating budget has been held stable or reduced.
The Borough expects significant changes in the allocation of tax receipts between operations and debt
service in future fiscal years, The passage of Senate Bill 138 during the 2014 session of the Alaska
Legislature amended the operating tax cap formula as it relates to the application of the modifier to the
average per capita value. Under the new law, those municipalities with a mill rate between 19 and 20 will
be required to use the current modifier. Municipalities with a mill rate between 18 and 19 will be allowed
to use a modifier of 300%, while those municipalities with a mill rate under 18 mills will be allowed to
use a modifier of 375%. As the Borough has historically had a mill rate of 18.50, it is expected that the
Borough will utilize the 300% modifier in future years. The increase in funds available for operations will
be offset by a corresponding decrease in funds available for debt service.
8
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)
The largest portion of the Borough’s net position (71%) reflects its investment in capital assets (e.g., land,
buildings, equipment, and infrastructure). The Borough uses these capital assets to provide services to
citizens; consequently, these capital assets are not available for future spending. Although the Borough’s
investment in capital assets is reported net of debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities. An additional portion of the Borough’s net position is restricted for Permanent
Fund investments (23%). The following reflects the condensed statement of net position.
Current and other assets
Capital assets
Total assets
$
Long-term liabilities
Deferred inflows of resources
Other liabilities
Total liabilities
$
$
Governmental activities
2014
2013
1,349,506,899
1,274,571,413
1,440,339,444
1,430,767,410
2,789,846,343
2,705,338,823
Business-type activities
2014
2013
86,535,487
28,576,947
340,065,141
309,389,581
426,600,628
337,966,528
Total
2014
2013
1,436,042,386
1,303,148,360
1,780,404,585
1,740,156,991
3,216,446,971
3,043,305,351
$
343,129,046
358,594,298
18,444,539
720,167,883
410,400,179
356,879,321
42,851,331
810,130,831
71,640,145
21,428,585
93,068,730
5,356,248
21,195,160
26,551,408
414,769,191
358,594,298
39,873,124
813,236,613
415,756,427
356,879,321
64,046,491
836,682,239
Net assets:
Net Investment in capital assets $
Restricted
Unrestricted
Total net position
$
1,376,535,475
554,345,283
138,797,702
2,069,678,460
1,277,311,066
489,268,426
128,628,500
1,895,207,992
326,069,603
7,462,295
333,531,898
309,389,581
2,025,539
311,415,120
1,702,605,078
554,345,283
146,259,997
2,403,210,358
1,586,700,647
489,268,426
130,654,039
2,206,623,112
For more detailed information, see page 18 for the statement of net position.
9
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)
Statement of Activities
The following condensed table of changes in net position displays the revenues and expenses for the
current year.
Governmental activities
2014
2013
Revenues:
Program revenues:
Charges for services
Operating grants and
contributions
Capital grants
General revenues:
Property taxes
Investment earnings
Economic impact assistance
Grants and entitlements not
restricted to specific programs
Other
$
Business-type activities
2014
2013
Total
2014
2013
7,786,376
7,674,184
39,105,298
34,044,791
46,891,674
41,718,975
38,423,394
33,763,016
41,809,725
23,713,020
696,460
-
603,499
-
39,119,854
33,763,016
42,413,224
23,713,020
347,546,497
88,424,067
5,000,000
328,846,618
55,825,691
5,000,000
1,265
-
784
-
347,546,497
88,425,332
5,000,000
328,846,618
55,826,475
5,000,000
1,216,406
7,797,056
1,135,374
4,903,795
-
-
1,216,406
7,797,056
1,135,374
4,903,795
529,956,812
468,908,407
39,803,023
34,649,074
569,759,835
503,557,481
74,677,981
109,398,514
32,192,460
27,045,823
8,315,278
43,640,694
9,745,810
14,987,448
-
67,472,759
127,446,812
31,177,215
27,165,148
7,999,441
42,947,630
10,844,513
17,854,348
-
27,650,153
24,789,202
(4,312)
733,538
27,220,964
21,638,889
(2,146)
358,983
74,677,981
109,398,514
32,192,460
27,045,823
8,315,278
43,640,694
9,745,810
14,987,448
27,650,153
24,789,202
(4,312)
733,538
67,472,759
127,446,812
31,177,215
27,165,148
7,999,441
42,947,630
10,844,513
17,854,348
27,220,964
21,638,889
(2,146)
358,983
Total expenses
320,004,008
332,907,866
53,168,581
49,216,690
373,172,589
382,124,556
Changes in net position
before transfers
209,952,804
136,000,541
(13,365,558)
(14,567,616)
196,587,246
121,432,925
(35,482,336)
(16,459,863)
35,482,336
16,459,863
-
-
174,470,468
119,540,678
22,116,778
1,892,247
196,587,246
121,432,925
1,895,207,992
1,775,667,314
311,415,120
309,522,873
2,206,623,112
2,085,190,187
2,069,678,460
1,895,207,992
333,531,898
311,415,120
2,403,210,358
2,206,623,112
Total revenues
Expenses:
General government
Public works
Public safety
Health and social services
Wildlife management
Primary and secondary education
Higher education
Interest on long-term debt
Power and Light
Service Area 10
Home Assistance Loan
Real Property Management
Transfers
Change in net position
Net position, beginning of year
Net position, end of year
$
10
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)
Key Elements
The overall net costs for governmental activities increased by $19.7 million in FY 2014 due primarily to
steady increase in program revenue and overall reduction in expenses. In addition, property tax revenues
increased by $18.7 million. Furthermore, a significant gain into the Permanent fund of approximately $83
million due to an improved market performance, also contributed to the increase in net position. The net
increase in general revenues, while spending also increased, is largely what allowed for the increase in net
position during the year. The cumulative impact of these changes was an increase in the Borough’s
governmental activities net position of $174.5 million in FY 2014.
Business-type revenues increased by $5.1 million in FY 2014. Although the Service Area 10 and the Real
Property Management Fund net operating income collectively increased by approximately $2.4 million
from prior year, this however was not sufficient to offset the effects of higher fuel costs, primarily in the
Power and Light fund and increased operating costs. The overall result was a loss of $13.4 million before
transfers, which is approximately $1.2 million lower than the prior year.
Financial Analysis of the Government’s Funds
As noted earlier, the Borough uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.
Governmental funds – The focus of the Borough’s governmental fund financial statements is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such information is
useful in assessing the Borough’s financing requirements. In particular, unreserved fund balance may
serve as a useful measure of a government’s net resources available for spending at the end of the fiscal
year.
As of the end of the fiscal year, the Borough’s governmental funds reported a combined ending fund
balance of $967,065,075, an increase of $96,817,105, in comparison to the beginning of the year,
reflective of the $83,103,950, million gain on Permanent Fund investments as well a slight increase
spending of capital project funds. Included in fund balances is $10,325,302, which is nonspendable fund
balance as it is composed of inventory, prepaid amounts, long-term notes receivable, and/or endowment
funds. Governmental fund balance includes $554,268,543 for the Permanent Fund. From this balance,
$214,647,511 is restricted and $339,621,032 is nonspendable. Additionally, the Governmental fund
balance includes $239,070,530, restricted for capital projects. Furthermore, $18,497,633, of the
governmental funds fund balance is committed to use for litigation, self-insurance, and other purposes.
An additional $14,155,484, of government fund balance is assigned, primarily to liquidate encumbrances,
and the remaining $130,747,583, of the total governmental fund balance amount constitutes unassigned
fund balance.
The General Fund is the main operating fund of the Borough. At the end of the fiscal year, unassigned
fund balance of the General Fund was $130,747,583, while total fund balance was $163,812,574, an
increase in unassigned fund balance of $19,165,140 from the prior fiscal year. This increase in unassigned
fund balance is due to revenues increasing faster than expenses, a decrease in encumbered funds, and the
repayment of $7 million of loan advancement to Service Area 10. As a measure of the General Fund’s
11
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)
liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total
expenditures. Unassigned fund balance represents 31.08% of total General Fund expenditures, while total
fund balance represents 38.94% of that same amount.
The Permanent Fund had a total fund balance of $554,268,543, all of which is nonspendable or restricted.
Net position in the Permanent Fund increased by $65,076,857 due to investment gains for the fiscal year
as well as the withdrawal for operations from the General Fund of 4% of average fund balance.
Proprietary funds – The Borough’s proprietary fund financial statements provide the same type of
information found in the government-wide financial statements, but in more detail.
Total fund equity for the Power and Light fund increased by $12,475,275 to $52,253,550. The electric
utility increase was due primarily to contributed capital of 16,760,862.
Total fund equity of Service Area 10, the solid waste disposal and treatment facility on Alaska’s North
Slope, increased by $3,665,798 to a total of $13,567,737. The increase in fund equity is due largely to the
increase in service volume and a new rate structure that went into effect in November 2013. In addition,
the Borough renegotiated its agreement with it's service provider resulting in a positive financial outlook
of the utility plant.
Total fund equity of the Real Property Management Fund increased by $970,810 to $261,596,044. The
increase in fund equity is due primarily to the increase in rent revenue.
12
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)
Total fund equity for the Nonmajor Enterprise Funds increased by $5,004,895 to $6,114,567.
Additionally, the General Fund transferred $5,000,000 to the Home Assistance Loan Program to
implement the new bridge loan housing program.
Other factors concerning the finances of these three funds have already been addressed in the discussion
of the Borough’s business-type activities.
General Fund Budgetary Highlights
The budget process was predicted on holding the line on spending in order to preserve the long-term
financial stability of the Borough. Over the course of the year, it became clear prior to finalizing the
budget, that additional revenues would be available for government operations. The final expenditure
budget was an increase from the original budget of $89.7 million, or about 24%. The increases in the final
expenditure budget were spread across all departments with the largest increases being:

$29.8 million increase in General Government expenditures due to additional grant-related
expenditures that were not adopted in the original budget because their amounts were as yet
unknown.

$9.7 million increase in Public Works expenditures is due to increased energy costs and making
emergency repairs to our utility system.

$16 million increase in Wildlife Management expenditures was due to additional grant-related
expenditures that were not adopted in the original budget because their amounts were as yet
unknown.

$3 million increase in Public Safety expenditures was due largely to additional grant-related
expenditures that were not adopted in the original budget because their amounts were as yet
unknown, as well as increased fuel costs.

$4.8 million increase in Health and Social services expenditures was due to additional grant-related
expenditures that were not adopted in the original budget because their amounts were as yet
unknown.
Differences between the final budget and actual can be briefly summarized as follows:

Intergovernmental revenues were $22.5 million less than budgeted due to timing of related
expenditures.

Investment earnings were $6.2 million less than expected due to the continued low interest rate
policy promoted by the Federal Reserve.

State gas production tax credit revenue was $21.9 million higher than expected due to an NSB
policy decision to defer budgeting this revenue until the tax credits were fully realizable.
13
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)

Expenditures were $46.1 million under budget largely due to the timing differences in grant-related
expenditures. It is expected that these grant-related expenditures will occur in the following fiscal
year.

Other revenues were $16.4 million under budget due to timing of other revenue receipts.
Other financing sources had a significant variance due to the final budget not reflecting the transfer of
funds from the General Fund to the Capital Project Funds, Permanent Fund, and Real Property
Management Fund during FY 2014.
None of these variances will have a significant impact on the Borough’s futures services or liquidity.
Capital Asset and Debt Administration
Capital Assets – The Borough’s investment in capital assets for its governmental and business-type
activities as of June 30, 2014 amounts to $1,780,404,585 (net of accumulated depreciation). This
investment in capital assets includes land, gas fields, buildings and improvements, equipment,
construction work-in-progress, sewer and water treatment facilities, and roads. The total net increase in
the Borough’s investments in capital assets for the fiscal year was $40,247,594 and was primarily due to
additions to the infrastructure, and construction work-in-progress as noted below.
Major capital asset events during the fiscal year included the following:

Construction work-in-progress for the Business-type activities increased by more than $19 million
over last year due to the construction and expansion of the new Service Area 10 utility plant.

Renovation to the Kali school in Point Lay totaling approximately $10.3 million. In addition,
generator upgrades to the Barrow High school in the amount of $1.4 million.

Approximately $13.5 million as invested in upgrades to the Barrow Gas Fields, primarily on the
east Barrow field pipeline.

Water and sewer extension in Barrow and in Point Hope totaling approximately $6.6 million.

Approximately $1.3 million was invested in Airport Navigations Systems upgrades in Atqasuk.

Approximately $1.1 million was invested for a new ladder truck for the Barrow division of the
North Slope Fire Department.
14
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)
The following table displays the capital assets (net of depreciation):
Land
Construction work-in-progress
Gas fields
Buildings and improvements
Improvements other than buildings
Equipment
Infrastructure
$
$
Governmental activities
2014
2013
31,646,147
31,646,147
58,723,352
61,459,110
169,065,124
158,042,676
557,991,086
559,629,865
34,769,305
36,041,227
48,051,171
41,737,600
540,093,259
542,210,785
1,440,339,444
1,430,767,410
Business-type activities
2014
2013
258,231,048
258,231,048
22,434,768
1,842,650
48,167,143
40,884,196
11,232,182
8,431,687
340,065,141
309,389,581
Total
2014
289,877,195
81,158,120
169,065,124
606,158,229
34,769,305
59,283,353
540,093,259
1,780,404,585
2013
289,877,195
63,301,760
158,042,676
600,514,061
36,041,227
50,169,287
542,210,785
1,740,156,991
Additional information on the Borough’s capital assets can be found in note 5 to the financial statements
on pages 42 – 44 of this report.
Long-Term Obligations – At the end of the fiscal year, the Borough had total bonded debt outstanding
of $387,711,408 including $62.2 million dollars in revenue bonds sold for the construction and expansion
of the new Service Area 10 Utility Plant. All of the general obligation bonds are backed by the full faith
and credit of the Borough while the revenue bonds are secured by a pledge of Service Area 10 Water and
Wastewater Revenues. The remainder of the Borough’s debt represents capital leases, landfill postclosure
care costs, compensated absences, and health claims incurred but not reported. The following table
displays the long-term obligations:
General obligation bonds
Revenue bonds
Plus deferred amounts:
For issuance premiums
$
Total bonds payable
Accreted principal on capital
appreciation bonds
Capital lease obligations
Landfill closure and postclosure
care costs
Compensated absences
Health claims
$
Governmental activities
2014
2013
Business-type activities
2014
2013
Total
307,195,000
14,603,227
353,985,921
15,178,150
62,200,000
3,713,181
-
307,195,000
62,200,000
353,985,921
-
-
18,316,408
15,178,150
321,798,227
369,164,071
65,913,181
-
387,711,408
369,164,071
120,232
15,711,518
1,517,202
-
-
120,232
15,711,518
1,517,202
14,504,315
4,699,272
2,007,000
18,082,637
4,574,751
1,350,000
5,490,289
236,675
-
5,165,759
190,489
-
19,994,604
4,935,947
2,007,000
23,248,396
4,765,240
1,350,000
343,129,046
410,400,179
71,640,145
5,356,248
414,769,191
415,756,427
2014
2013
Although there was a slight increase of approximately $18.5 million in government-wide long term bond
obligations, there was a $47.4 million reduction in general obligation bonds payable. In addition, the
remaining $15.7 million in accreted principal on capital appreciation bonds was liquidated this last fiscal
year. Furthermore, the capital lease obligation decreased by $1.3 million. The overall decrease of $67.3
15
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)
million in governmental activities long-term liabilities helped to offset the new debt that was issued for
Service Area 10.
Major long-term debt activity during the year included the following:

On October 15, 2013, the Borough issued general obligation bond Series 2013A in the amount of
$100,775,000 to finance various capital projects. Also, in March 13, 2014, the Borough issued
revenue bonds Series 2014 in the amount of $62,200,000 to finance for the construction and
addition of the new Service Area 10 Water and Wastewater Facilities.

During FY 2014, the Borough maintained its ratings for its general obligation bonds as follows:


Standard & Poor Corporation
AA-

Fitch Investors Service
AA

Moody’s Investor Service
Aa3
During FY2014, the Borough received a rating of A- for its revenue bonds Series 2014 from
Standard & Poor Corporation.
There is no general obligation debt limit imposed on the Borough by the State Constitution or statutes or
the Borough’s charter or code.
Additional information on the Borough’s long-term debt can be found in note 7 on pages 46 – 51 of this
report.
16
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Management’s Discussion and Analysis
June 30, 2014
(Unaudited)
Economic Factors and Next Year’s Budgets and Rates
The principal source of property tax revenues historically has been, and is expected to continue to be,
taxes upon oil- and gas-related property. Currently, the oil- and gas-related taxes account for 98% of the
property tax revenue. Because of the decline in production of the North Slope oil fields, the property tax
revenues are projected to continue their moderate decline in future years. However, in the short term, it is
anticipated that the increased level of development and exploration activity currently occurring will result
in a temporary stabilization or moderate increases in assessed values. Because of the tax cap formula
discussed earlier, this increased activity will affect both the operating budget, which is restricted by the
statutory tax cap, and the overall budget including debt reimbursement.
Despite retaining the tax levy at 18.5 mills, the FY 2015 General Fund budget revenues from taxes
increased by $22 million to a total of $354.3 million. This increase in property tax revenues will allow the
Borough to maintain the transfer rate from the Permanent Fund at 4%. Due to the previously discussed
passage of Senate Bill 138, the Borough expects to reduce, and eventually eliminate transfers from the
Permanent Fund into the General Fund beginning in FY 2016.
The net result is that additional general operating funds are available to address fixed cost increases
including salary increases, fringe rate increases, insurance costs, and fuel price increases without
impacting government services. In addition, a portion of the revenues will be used for funding critical
new programs, increasing support for education, paying down debt, and increasing savings.
Requests for Information
This financial report is designed to provide a general overview of the North Slope Borough’s finances for
all those with an interest in government’s finances. Questions concerning any of the information provided
in this report or requests for additional information should be addressed to the North Slope Borough
Department of Administration and Finance, P.O. Box 69, Barrow, Alaska 99723.
17
BASIC FINANCIAL STATEMENTS
NORTH SLOPE BOROUGH, ALASKA
Statement of Net Position
June 30, 2014
Governmental
activities
Primary government
Business-type
activities
Total
Component Units
Ilisagvik
School District
College
Assets
Imprest cash
Restricted cash
Cash and investments with central treasury
Other cash and investments
Accounts receivable, net:
Property taxes
Intergovernmental
Trade
Other
Accrued interest
Prepaids and deposits
Inventory
Loan receivable, net
Capital assets:
Not being depreciated
Being depreciated, net
Total assets
$
15,050
754,003,994
571,677,662
59,274,634
24,303,768
-
15,050
59,274,634
778,307,762
571,677,662
7,841,349
-
5,464,475
4,311,056
3,358,422
8,989,015
1,040,005
3,038,527
716,003
6,629,433
38,788
2,835,020
122,065
3,358,422
8,989,015
2,835,020
1,040,005
3,038,527
716,003
6,629,433
160,853
1,632,333
2,131,719
12,343
262,315
-
797,544
90,401
57,582
322,174
-
90,369,499
1,349,969,945
280,665,816
59,399,325
371,035,315
1,409,369,270
1,753,750
1,096,108
$
2,789,846,343
426,600,628
3,216,446,971
13,633,809
12,139,340
$
17,721,957
627,654
777
10,559,180
-
28,281,137
627,654
777
1,079,442
641,810
-
516,553
887,827
-
9,299,467
46,738
(9,252,054)
1,617,351
9,252,054
9,299,467
1,664,089
-
354,303
-
536,324
-
103,716,708
239,412,338
361,573,585
271,070
71,369,075
93,068,730
103,987,778
310,781,413
454,642,315
2,843,792
4,919,347
1,940,704
352,798,090
5,796,208
358,594,298
-
352,798,090
5,796,208
358,594,298
-
-
1,376,535,475
326,069,603
1,702,605,078
1,753,750
1,096,108
214,647,511
339,621,032
76,740
138,797,702
2,069,678,460
7,462,295
333,531,898
214,647,511
339,621,032
76,740
146,259,997
2,403,210,358
10,879
6,949,833
8,714,462
9,102,528
10,198,636
2,789,846,343
426,600,628
3,216,446,971
13,633,809
12,139,340
Liabilities, Deferred Inflows of Resources, and
Net Position
Liabilities:
Accounts payable
Accrued payroll and related benefits
Matured bonds and interest payable
Unearned revenue:
Intergovernmental
Deposits payable and other liabilities
Internal balances
Non-current liabilities:
Due within one year
Due in more than one year
Total liabilities
Deferred Inflows of Resources:
Unavailable revenue - property taxes
Unavailable revenue - other
Total deferred inflows of resources
Net position:
Net investment in capital assets
Restricted for:
Permanent fund, expendable
Permanent fund, nonexpendable
Museum purchases, expendable
School District programs, expendable
Unrestricted
Net position
Total liabilities, deferred inflows of
resources and net position
$
See accompanying notes to financial statements.
18
NORTH SLOPE BOROUGH, ALASKA
Statement of Activities
For the year ended June 30, 2014
Program revenues
Functions/Programs
Charges for
Services
Expenses
Net (expense) revenue and changes in net position
Primary government
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental
Activities
Business-type
Activities
Total
Component units
School District
Ilisagvik
College
Primary government:
Governmental activities:
General government
Public works
Public safety
Health and social services
Wildlife management
Primary and secondary education
Higher education
Interest on long-term debt
$
74,677,981
109,398,514
32,192,460
27,045,823
8,315,278
43,640,694
9,745,810
14,987,448
4,110,349
3,418,131
257,896
-
8,709,471
23,205,392
690,650
3,962,063
1,855,818
-
33,763,016
-
(61,858,161)
(49,011,975)
(31,501,810)
(22,825,864)
(6,459,460)
(43,640,694)
(9,745,810)
(14,987,448)
320,004,008
7,786,376
38,423,394
33,763,016
(240,031,222)
27,650,153
24,789,202
(4,312)
733,538
8,685,325
28,185,361
583
2,234,029
504,654
163,834
27,972
-
-
$
53,168,581
373,172,589
39,105,298
46,891,674
696,460
39,119,854
33,763,016
(240,031,222)
$
78,524,794
15,875,963
94,400,757
4,188,008
1,153,056
5,341,064
15,759,502
4,411,535
20,171,037
2,663,723
2,663,723
Total governmental activities
Business-type activities:
Power and Light
Service Area 10
Home Assistance Loan
Real Property Management
Total business-type activities
Total primary government
Component units:
School District
Ilisagvik College
Total component units
$
(61,858,161)
(49,011,975)
(31,501,810)
(22,825,864)
(6,459,460)
(43,640,694)
(9,745,810)
(14,987,448)
-
-
(240,031,222)
-
-
(18,460,174)
3,559,993
4,895
1,528,463
(18,460,174)
3,559,993
4,895
1,528,463
-
-
(13,366,823)
(13,366,823)
(13,366,823)
(253,398,045)
-
-
(55,913,561)
(55,913,561)
(10,311,372)
(10,311,372)
-
General revenues:
Property taxes
Grants and entitlement not restricted to specific programs
Economic impact assistance
Investment earnings
Support from primary government
Other
Transfers
Total general revenues and transfers
$
Change in net position
Net position, beginning of year
Net position, end of year
$
See accompanying notes to financial statements.
19
347,546,497
1,216,406
5,000,000
88,424,067
7,797,056
(35,482,336)
414,501,690
1,265
35,482,336
35,483,601
347,546,497
1,216,406
5,000,000
88,425,332
7,797,056
449,985,291
23,406,209
32,875,626
1,875,785
58,157,620
242,189
533,114
10,789,452
823,689
12,388,444
174,470,468
22,116,778
196,587,246
2,244,059
2,077,072
1,895,207,992
311,415,120
2,206,623,112
6,470,403
8,121,564
2,069,678,460
333,531,898
2,403,210,358
8,714,462
10,198,636
NORTH SLOPE BOROUGH, ALASKA
Balance Sheet - Governmental Funds
June 30, 2014
General
Assets
Imprest cash
Cash and investments with central treasury
Other cash and investments
Accounts receivable:
Property taxes, net
Intergovernmental
Other
Loan receivable, net
Accrued interest
Due from other funds
Prepaids and deposits
Inventory
Total assets
$
$
Permanent
Nonmajor
governmental
funds
Total
governmental
funds
15,050
498,452,981
-
571,677,662
255,551,013
-
15,050
754,003,994
571,677,662
3,358,422
2,432,300
1,040,005
38,788
2,420,555
28,494,388
680,074
6,629,433
543,561,996
617,972
558,507
572,854,141
6,556,715
35,929
262,143,657
3,358,422
8,989,015
1,040,005
38,788
3,038,527
29,052,895
716,003
6,629,433
1,378,559,794
6,035,282
59,808
2,574,846
-
11,686,675
-
17,721,957
59,808
2,574,846
777
9,041,686
46,738
17,759,137
18,585,598
18,585,598
257,781
1,215,243
13,159,699
777
9,299,467
46,738
19,800,841
49,504,434
356,156,187
5,796,208
37,890
361,990,285
-
-
356,156,187
5,796,208
37,890
361,990,285
680,074
6,629,433
3,000,000
-
339,621,032
-
15,795
680,074
6,629,433
3,000,000
339,621,032
15,795
-
214,647,511
-
239,070,530
214,647,511
239,070,530
5,500,000
900,000
2,200,000
14,155,484
130,747,583
163,812,574
554,268,543
84,578
5,724,080
366,032
3,698,362
24,581
248,983,958
5,500,000
900,000
2,200,000
84,578
5,724,080
366,032
3,698,362
24,581
14,155,484
130,747,583
967,065,075
543,561,996
572,854,141
262,143,657
1,378,559,794
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable
Accrued payroll
Payroll taxes withheld
General obligation bonds and supplemental
coupons payable
Unearned revenue - intergovernmental
Deposits payable
Due to other funds
Total liabilities
$
Deferred Inflows of Resources:
Unavailable revenues - property taxes
Unavailable revenues - other
Unavailable revenues - loans
Total deferred inflows of resources
Fund balances:
Nonspendable:
Prepaids and deposits
Inventory
Long-term notes receivable
Permanent fund corpus
Museum endowment
Restricted for:
Permanent fund
Authorized projects
Committed to:
Self-insurance
Litigation
Capital projects
Museum operations
Loans
Grants
Energy program
Public safety
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of resources
and fund balance
$
See accompanying notes to financial statements.
20
NORTH SLOPE BOROUGH, ALASKA
Reconciliation of Governmental Funds Balance Sheet to the
Statement of Net Position
June 30, 2014
Amount reported as fund balance on the governmental funds balance sheet
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.
$
1,440,339,444
Long-term receivables, delinquent property taxes, and loans are
not available to pay for current period expenditures and, therefore, are deferred
in the funds:
Property taxes
Loans receivable
3,358,097
37,890
3,395,987
Long-term liabilities, including bonds payable, are not due and
payable in the current period and, therefore, are not reported
in the funds:
General obligation bonds payable
Issuance premiums
Landfill postclosure care costs
Capital lease obligation
Compensated absences
Net position of governmental activities
$
See accompanying notes to financial statements.
21
967,065,075
(307,195,000)
(14,603,227)
(14,504,315)
(120,232)
(4,699,272)
(341,122,046)
2,069,678,460
NORTH SLOPE BOROUGH, ALASKA
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year ended June 30, 2014
General
Revenues:
Property taxes
Intergovernmental
Charges for services
Investment earnings
State gas production tax credit
Economic impact assistance
Other
Total revenues
$
Expenditures:
Current:
General government
Public works
Public safety
Health and social services
Wildlife management
Primary and secondary education
Higher education
Debt service:
Principal retirement
Interest on long-term debt
Bond issuance costs
Special revenues
Capital projects
Total expenditures
Excess (deficiency) of revenues over
expenditures
Other financing sources (uses):
Transfers in from other governmental funds
Transfers in from enterprise funds
Transfers out to other governmental funds
Transfers out to enterprise funds
General obligation bonds issued
Premium on issuance of debt
Insurance proceeds
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
$
Permanent
Nonmajor
governmental
funds
Total
governmental
funds
347,393,307
17,701,975
7,786,376
5,319,488
21,937,825
5,000,000
6,434,353
411,573,324
83,103,950
83,103,950
33,763,016
629
255,112
34,018,757
347,393,307
51,464,991
7,786,376
88,424,067
21,937,825
5,000,000
6,689,465
528,696,031
67,767,135
64,913,842
27,015,813
25,116,116
8,143,991
35,536,684
10,847,585
-
-
67,767,135
64,913,842
27,015,813
25,116,116
8,143,991
35,536,684
10,847,585
147,565,920
33,741,858
420,648,944
-
846,102
480,118
96,537,377
97,863,597
147,565,920
33,741,858
846,102
480,118
96,537,377
518,512,541
(9,075,620)
83,103,950
(63,844,840)
10,183,490
60,267,600
(25,213,000)
(19,174,587)
1,107,591
16,987,604
7,911,984
155,900,590
163,812,574
558,507
(18,585,600)
(18,027,093)
65,076,857
489,191,686
554,268,543
25,213,000
(41,682,000)
100,775,000
3,367,104
87,673,104
23,828,264
225,155,694
248,983,958
85,480,600
558,507
(85,480,600)
(19,174,587)
100,775,000
3,367,104
1,107,591
86,633,615
96,817,105
870,247,970
967,065,075
See accompanying notes to financial statements.
22
NORTH SLOPE BOROUGH, ALASKA
Reconciliation of Government Funds Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Statement of Activities
Year ended June 30, 2014
Net change in fund balance – total governmental funds
$
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense:
Capital outlay
Transfer of completed projects to business-type activities
The net effect of various transactions involving capital assets such as sales
and other disposals
Depreciation expense
74,293,428
(16,866,256)
83,918
(47,939,046)
9,572,044
Revenues in the statement of activities that do not provide current financial
resources and are deferred in the funds:
Property taxes
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effects of issuance costs, premiums, discounts, and similar
items when debt is first issued, whereas these amounts are deferred and
amortized in the statement of activities:
Issuance of general obligation bonds
Principal repayments on general obligation debt and capital leases
Bond premium
Amortization of deferred amounts
153,186
(100,775,000)
148,962,891
(3,367,104)
3,942,027
48,762,814
Repayment of certain long-term liabilities is reported as an expenditure in
governmental funds while they are recorded as a reduction in liabilities in the
statement of net position:
Postclosure care costs
Compensated absences
Accreted principal
Change in net position of governmental activities
$
See accompanying notes to financial statements.
23
96,817,105
3,578,322
(124,521)
15,711,518
19,165,319
174,470,468
NORTH SLOPE BOROUGH, ALASKA
Statement of Net Position
Proprietary Funds - Enterprise Funds
June 30, 2014
Business-type activities - enterprise funds
Real
Service
Power and
property
Area 10
light
management
Assets
Current assets:
Cash and investments with central treasury
Accounts receivable, net of allowance for
uncollectible accounts
$
-
5,980,844
6,114,567
24,303,768
1,988,402
919,948
48,735
-
2,957,085
14,196,759
919,948
6,029,579
6,114,567
27,260,853
59,274,634
17,209,591
7,596,425
5,225,177
52,614,770
257,419,178
-
59,274,634
22,434,768
317,630,373
84,080,650
57,839,947
257,419,178
-
399,339,775
$
98,277,409
58,759,895
263,448,757
6,114,567
426,600,628
$
10,117,342
87,546
102,205
2,999,109
438,395
135,162
238,350
5,694,438
3,443
13,967
1,276,796
558,507
-
10,559,180
236,675
1,617,351
9,252,054
13,306,202
6,506,345
1,852,713
-
21,665,260
5,490,289
62,200,000
3,713,181
-
-
-
5,490,289
62,200,000
3,713,181
71,403,470
-
-
-
71,403,470
84,709,672
6,506,345
1,852,713
-
93,068,730
10,810,478
2,757,259
13,567,737
57,839,947
(5,586,397)
52,253,550
257,419,178
4,176,866
261,596,044
6,114,567
6,114,567
326,069,603
7,462,295
333,531,898
98,277,409
58,759,895
263,448,757
6,114,567
426,600,628
Total non-current assets
Liabilities and Net Position
Current liabilities:
Accounts payable
Compensated absences
Other liabilities
Due to other funds
Total
enterprise
funds
12,208,357
Total current assets
Non-current assets:
Restricted cash
Construction work in progress
Capital assets, net
Total assets
Nonmajor
enterprise
funds
Total current liabilities
Non-current liabilities:
Accrued closure and postclosure costs
Revenue bonds payable
Premium on issuance of debt
Total non-current liabilities
Total liabilities
Net position:
Net investment in capital assets
Unrestricted
Total net position
Total liabilities and net position $
See accompanying notes to financial statements.
24
NORTH SLOPE BOROUGH, ALASKA
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds - Enterprise Funds
Year ended June 30, 2014
Business-type activities - enterprise funds
Real
Service
Power and
property
Area 10
light
management
Operating revenues:
Service Area 10 - oilfield support
services revenue
$ 28,185,361
Home Assistance Loan - revolving
loan fund interest
Real Property Management - rental
revenues
North Slope Borough Power and Light utility revenues
-
Nonmajor
enterprise
funds
Total
-
-
-
28,185,361
-
-
583
583
-
2,234,029
-
2,234,029
8,685,325
-
-
8,685,325
28,185,361
8,685,325
2,234,029
583
39,105,298
1,910,172
19,220,971
837,927
324,530
1,619,334
6,043,465
2,287,358
4,373,860
14,945,470
338,525
361,474
18,838
14,701
(4,312)
8,292,162
21,869,803
5,230,625
324,530
16,575,193
Total operating expenses
23,912,934
27,650,153
733,538
(4,312)
52,292,313
Operating income (loss)
4,272,427
(18,964,828)
1,500,491
4,895
(13,187,015)
411
(876,268)
163,834
504,654
854
27,972
-
1,265
(876,268)
696,460
3,560,404
(18,460,174)
1,529,317
4,895
(13,365,558)
-
14,174,587
(558,507)
-
5,000,000
(558,507)
19,174,587
105,394
16,760,862
-
-
16,866,256
Change in net position
3,665,798
12,475,275
970,810
5,004,895
22,116,778
Net position, beginning of year
Net position, end of year
9,901,939
$ 13,567,737
39,778,275
52,253,550
260,625,234
261,596,044
1,109,672
6,114,567
311,415,120
333,531,898
Total revenues
Operating expenses:
Salaries and benefits
Contractual and professional fees
Depreciation
Closure and postclosure care costs
Other operating expenses
Nonoperating revenues (expenses):
Investment earnings
Bond issuance costs
Intergovernmental revenues
Income (loss) before transfers
and capital contributions
Transfers out to governmental activities
Transfers in from governmental activities
Transfers of capital assets from
governmental activities
See accompanying notes to financial statements.
25
NORTH SLOPE BOROUGH, ALASKA
Statement of Cash Flows
Proprietary Funds – Enterprise Funds
Year ended June 30, 2014
Service
Area 10
Business-type activities – enterprise funds
Real
Nonmajor
Power and
Property
enterprise
Light
management
funds
Total
enterprise
funds
28,180,938
(18,405,899)
(1,753,783)
8,394,120
(17,084,896)
(5,725,215)
3,011,284
(380,589)
(309,446)
4,895
-
39,591,237
(35,871,384)
(7,788,444)
8,021,256
(14,415,991)
2,321,249
4,895
(4,068,591)
-
241,404
14,174,587
(619,900)
-
5,000,000
-
4,621,504
14,174,587
-
14,415,991
(619,900)
5,000,000
18,796,091
65,036,913
(7,000,000)
(14,849,663)
-
(41,742)
-
65,036,913
(7,000,000)
(14,891,405)
43,187,250
-
(41,742)
-
43,145,508
411
51,208,917
20,274,074
-
854
1,660,461
4,320,383
5,004,895
1,109,672
1,265
57,874,273
25,704,129
$
71,482,991
-
5,980,844
6,114,567
83,578,402
Operating income (loss)
$
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation
Bad debt expense
Non-cash expenses-PERS on-behalf payment
Changes in assets and liabilities that provided
(used) cash:
Accounts receivable
Accounts payable
Accrued payroll and compensated absences
Accrued closure and postclosure care costs
Other liabilities
Net cash provided by (used for) operating
activities
$
4,272,427
(18,964,828)
1,500,491
4,895
(13,187,015)
837,927
68,480
163,834
4,373,860
231,064
504,654
18,838
27,972
-
5,230,625
299,544
696,460
(4,424)
2,302,004
(7,445)
324,530
63,923
(330,651)
(83,132)
(186,404)
39,446
(48,734)
(4,414)
1,107
825,989
-
(383,809)
2,214,458
(192,742)
324,530
929,358
8,021,256
(14,415,991)
2,321,249
4,895
(4,068,591)
105,394
16,760,862
-
-
16,866,256
5,230,881
-
-
-
5,230,881
Cash flows from operating activities:
Cash received from customers
Payments to suppliers
Payments to employees
Net cash provided by (used for)
operating activities
Cash flows from noncapital financing activities:
Internal activity – payments (to) from other funds
Transfers from other funds
Net cash provided by (used for) noncapital
financing activities
$
Cash flows from capital and related financing activities:
Bond issuance
Payment on loan
Purchase of capital assets
Net cash used for capital and related
financing activities
Cash flows from investing activities:
Investment earnings
Net increase in cash and cash equivalents
Beginning cash and cash equivalents
Ending cash and cash equivalents
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Noncash capital and related financing activity:
Contribution of capital assets
Capital assets financed through accounts payable and
accumulated interest included in due to other funds
$
See accompanying notes to financial statements.
26
NORTH SLOPE BOROUGH, ALASKA
Statement of Fiduciary Net Position
Fiduciary Fund – Pension Trust Fund
June 30, 2014
Assets
Investments, at fair value:
Cash and cash equivalents
Mutual funds
Total assets
Net position:
Net position held in trust for retirement benefits
See accompanying notes to financial statements.
27
$
215,438
13,173,719
$
13,389,157
$
13,389,157
NORTH SLOPE BOROUGH, ALASKA
Statement of Changes in Fiduciary Net Position
Fiduciary Fund – Pension Trust Fund
Year ended June 30, 2014
Additions:
Investment income:
Net appreciation in fair value of investments
Interest and dividends
Total investment income
$
Contributions:
Participants
915,345
577,801
1,493,146
765,956
Total additions
2,259,102
Deductions:
Benefits paid directly to participants
Administrative expenses
1,648,349
6,239
Total deductions
1,654,588
Changes in net position
604,513
Net position held in trust for retirement benefits:
Beginning of year
End of year
$
See accompanying notes to financial statements.
28
12,784,644
13,389,157
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
(1)
Summary of Significant Accounting Policies
(a) Reporting Entity
The North Slope Borough (Borough) is a municipal corporation governed by an elected mayor and
seven-member assembly. As defined by generally accepted accounting principles in the United
States (GAAP) established by the Governmental Accounting Standards Board (GASB), the
financial reporting entity consists of the primary government, as well as its component units, which
are legally separate organizations for which the elected officials of the primary government are
financially accountable. Financial accountability is defined as:
(1)
appointment of a voting majority of the component unit’s board, and either (a) the ability to
impose will by the primary government, or (b) the possibility that the component unit will
provide a financial benefit to or impose a financial burden on the primary government; or
(2)
fiscal dependency on the primary government.
The accompanying 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 government-wide financial statements to
emphasize that it is legally separate from the government.
Discretely Presented Component Units
The North Slope Borough School District (School District) is responsible for elementary and
secondary education within the government’s jurisdiction. The members of the School District’s
governing board are elected by the voters. However, the Borough is financially accountable for the
School District because the responsibility for the budget, taxing, debt, and major capital project
construction rests with the Borough. The School District is presented as a governmental fund type.
Ilisagvik College (College) is a public college that conducts postsecondary education. The affairs of
the College are managed by a separate board of trustees, appointed by the Borough Assembly. The
Borough provided 60% of the funding for the College during the year ended June 30, 2014. The
College's financial statements are reported as an enterprise fund using the economic resources
measurement focus and the accrual basis of accounting.
Complete financial statements of the School District component unit can be obtained by contacting
the School District at the following address: North Slope Borough School District, P.O. Box 169,
Barrow, Alaska 99723. Complete financial statements of the College can be obtained by contacting
the College at the following address: Ilisagvik College, P.O. Box 749, Barrow, Alaska 99723.
(b)
Basis of Presentation
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on
29
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
fees and charges for support. Likewise, the primary government is reported separately from certain
legally separate component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segment are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or segment. Program revenues include 1) charges to customers or applicants
who purchase, use, or directly benefit from goods, services, or privileges provided by a given
function or segment; and 2) grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function or segment. Taxes and other items not included among
program revenues are reported as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and the
fiduciary fund, even though the latter are excluded from the government-wide financial statements.
Major individual governmental funds and major individual enterprise funds, if applicable, are
reported as separate columns in the financial statements for each fund type.
The government reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.

The Permanent Fund contains assets that are to be held in perpetuity except that an annual
transfer may be made to the General Fund from the accumulated earnings in an amount up to
8% of the average total fair value of the fund at the end of the three preceding fiscal years.
Funds may be appropriated to the Permanent Fund from any source. Income of the fund is to
be added to the fund. The amount transferred may not be used to pay debt service on the
Borough’s debt.
The government reports the following major proprietary funds:

The Real Property Management Fund accounts for the management and disposition of
revenues associated with real property.

The Power & Light Fund includes the power-generating activities for the North Slope
communities of Anaktuvuk Pass, Kaktovik, Nuiqsut, Point Hope, Point Lay, Wainwright, and
Atqasuk.

The Service Area 10 Fund includes the Prudhoe Bay solid waste disposal and treatment
facility.
Additionally, the government reports the following fiduciary fund:

The Pension Trust Fund accounts for the activities of the Borough's Employee Thrift Plan,
which accumulates resources for employees’ before- and after-tax savings.
30
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
(c)
Measurement Focus and Basis of Accounting
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in
the year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements have been met. Eligibility requirements include timing requirements, which
specify the year when the resources are required to be used or the fiscal year when use is first
permitted; matching requirements, in which the Borough must provide local resources to be used for
a specified purpose; and expenditure requirements, in which the resources are provided to the
Borough on a reimbursement basis.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the government considers revenues to be available if they are collected within
60 days of the end of the current fiscal period. Expenditures generally are recorded when the
liability is incurred, as under accrual accounting. However, principal and interest on general longterm debt, claims and judgments, and compensated absences are recorded only when payment is
due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds
of general long-term debt and acquisitions under capital leases are reported as other financing
sources.
Property taxes, grants, and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the fiscal period. All other
revenue items are considered to be measurable and available only when cash is received by the
government.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are charges between the government’s various
utility functions and various other functions of the government. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than as program
revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and/or producing and delivering
goods in connection with a proprietary fund’s principal ongoing operations. The principal operating
revenues of the enterprise funds are charges to customers for sales and services. Power and Light
also recognizes as operating revenue the portion of fees intended to recover the cost of connecting
new customers. Operating expenses for enterprise funds include the cost of sales and services,
31
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as nonoperating revenues and expenses.
(d)
Assets, Liabilities, and Fund Equity
Cash and Investments
Certain investments of the Permanent Fund are deposited or invested in individual segregated bank
accounts. Moneys of all other funds are maintained or invested in a common group of bank
accounts. Collectively, these common bank accounts and investments represent the central treasury.
Each fund whose moneys are included in the central treasury has equity therein. Each fund’s portion
of the central treasury is displayed on the balance sheet as “cash and investments with central
treasury” or is included in “due to other funds” if negative.
Imprest cash and certificates of deposits, and repurchase agreements with original maturities of
90 days or less, are considered to be cash equivalents. For purposes of the statements of cash flows,
cash and investments with central treasury held by enterprise funds are treated as cash equivalents.
Investments are reported at fair value. For marketable debt and equity securities, including real
estate investment trusts, fair values are obtained from independent sources using published market
prices, quotations from national security exchanges, and security pricing services. Fair values of
alternative investments are determined by management using information prepared by the
investment manager. Investment income earned from central treasury investments is allocated to the
various funds as follows: General Fund – $5,319,488, Walakpa Special Revenue Fund – $629, Real
Property Management Fund – $854, and Service Area 10 – $411. Approximately $2,256,742 of the
investment earnings from central treasury investments are associated with funds other than the
General Fund.
Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at
the end of the fiscal year are referred to as “due to/from other funds.” All amounts due to/from other
funds are short term in nature.
All trade and property taxes receivable, including those for Service Area 10 and Power and Light,
are shown net of an allowance for uncollectibles. Trade accounts receivable in excess of 90 days
comprise the trade accounts receivable allowance for uncollectibles, including those for Service
Area 10 and Power and Light. The property taxes receivable allowance is equal to approximately
3% of outstanding property taxes at June 30, 2014.
Inventories and Prepaid Items
Inventory in the General Fund consists primarily of fuel. Inventories in the enterprise funds consist
of supplies and materials. All inventories are valued at cost using the first-in, first-out (FIFO)
method. Inventories of governmental funds are recorded as expenditures when consumed rather than
when purchased.
32
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both government-wide and fund financial statements. Prepaid expenses are
recorded as expenditures when consumed.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
utilidors, streetlights, and similar items), are reported in the applicable governmental or businesstype activities columns in the government-wide financial statements. Capital assets are defined by
the Borough as assets with an initial, individual cost of more than $5,000 (amount not rounded) and
an estimated useful life in excess of two years. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded at
estimated fair value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend asset’s lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business-type activities is
included as part of the capitalized value of the assets constructed. Total interest capitalized during
the year was $1,110,289.
Property, plant, and equipment of the primary government, as well as the component units, are
depreciated using the straight-line method over the following estimated useful lives:
Buildings and improvements
Property and Plant:
Treatment, general plant, and landfill
Utility plant
Power generators
Equipment
Infrastructure
Gas fields
33
15 – 25 years
5 –15 years
25 – 30 years
14 years
3 – 10 years
10 – 100 years
50 years
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Compensated Absences
It is the Borough’s policy to permit employees to accumulate earned but unused annual leave
benefits. All annual leave pay is accrued when incurred in the government-wide and proprietary
fund financial statements. The liability for compensated absences reported in the government-wide
and proprietary fund statements consists of unpaid, accumulated vacation and sick leave balances.
The liability has been calculated using the vesting method, in which leave amounts for both
employees who currently are eligible to receive termination payments and other employees who are
expected to become eligible in the future to receive such payments upon termination are included. A
liability for these amounts is reported in governmental funds only if they have matured, for
example, as a result of employee resignations and retirements. During 2014 and prior years, the
General Fund has liquidated the liability for matured compensated absences except for those related
to proprietary funds.
Bond Premiums, Discounts, and Issuance Cost
In the government-wide and proprietary fund financial statements, bond premiums and discounts are
deferred and amortized over the life of the bonds using the effective interest method. Bonds payable
are reported net of the applicable bond premium or discount. Bond issuance costs are expensed
within the year the bonds are sold.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is reported
as other financing sources. Premiums on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or
not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Arbitrage
The Tax Reform Act of 1986 requires governmental entities issuing tax-exempt bonds to refund to
the U.S. Treasury interest earnings on bond proceeds in excess of the yield on those bonds.
Governmental entities must comply with arbitrage rebate requirements in order for their bonds to
maintain tax-exempt status. Entities are required to remit arbitrage rebate payments for nonpurpose
interest to the federal government at least once every five-year period that the debt is outstanding
and at maturity. Arbitrage liabilities are recorded as a reduction in investment earnings in the
General Fund. At June 30, 2014, the Borough estimated the total arbitrage rebate liability to be $0.
(e)
Deferred outflows/inflows of resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period(s) and so will not
be recognized as an outflow of resources (expense/expenditure) until then. The Borough currently
does not have any items that qualify for reporting this category.
In addition to liabilities, the statement of financial position will sometimes report a separate section
for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period(s) and so will not
be recognized as an inflow of resources (revenue) until that time. The Borough has only one type of
34
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
item that qualifies for reporting in this category. The item, unavailable revenue, is reported in the
governmental funds balance sheet and the government-wide statement of net position. The
governmental funds report unavailable revenues from three sources: delinquent property taxes,
property taxes collected that are levied for the subsequent fiscal year, and certain loan amounts.
These amounts are deferred and recognized as an inflow of resources in the period that the amounts
become available. The government-wide statement of net position report unavailable revenues from
one source: property taxes collected that are levied for the subsequent fiscal year. These amounts
are deferred and recognized as an inflow of resources in the period for which the property taxes are
levied.
(f)
Fund Equity
Fund Balance Components
The fund balance amounts for governmental funds are displayed in five components as follows:
Nonspendable – Includes amounts either not in spendable form or legally or contractually
required to be maintained intact. Amounts not in spendable form would include long-term notes
receivable, inventory, prepaids and Permanent fund corpus.
Restricted – Reflects the same definition as restricted net assets: constraints placed on the use of
amounts are either externally imposed by creditors (such as through debt covenants), grantors,
contributors, or laws or regulations of other governments; or imposed by law through
constitutional provisions or enabling legislation. This would generally include amounts in bonded
capital projects funds.
Committed – Includes amounts that are committed for specific purposes by formal action of the
Assembly, the Borough’s highest level of decision making authority. This formal action is the
passage of an ordinance. Amounts classified as committed are not subject to legal enforceability
like restricted fund balance; however, those amounts cannot be used for any other purpose unless
the Assembly removes or changes the limitation by taking the same form of action it employed to
previously impose the limitation.
Assigned – Includes amounts that are intended by the Assembly to be used for specific purposes,
but the Assembly itself or the Director of Administration and Finance possesses the authority to
assign amounts to be used for specific purposes in accordance with the fund balance policy
established by the Assembly. This would include any activity reported in a fund other than the
General Fund that is not otherwise restricted more narrowly by the above definitions.
Unassigned – Includes any remaining amounts after applying the above definitions and includes
planned spending in the subsequent year’s budget.
Spending Policy – The Borough’s spending policy is to spend restricted fund balance first,
followed by committed, assigned, and unassigned fund balance.
Encumbrances – Encumbrance accounting, under which purchase orders, contracts, and other
commitments for the expenditure of resources are recorded in order to reserve that portion of the
applicable appropriations, is employed as an extension of formal budgetary integration in the
35
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Borough’s governmental funds. Encumbrances, if any, outstanding at year-end are reported as
appropriate constraints of fund balance if they meet the criteria and definitions outlined above
and are generally reported as assigned fund balance.
General Fund encumbrances at June 30, 2014 were $14,155,484. Capital project fund
encumbrances were $97,004,266 and are reported in note (5)(b).
Net Position
In the government-wide and proprietary fund financial statements, equity is displayed in
three components as follows:
Net investment in capital assets – This consists of capital assets, net of accumulated
depreciation, less the outstanding balances of any bonds, mortgages, notes, or other
borrowings that are attributable to the acquisition, construction, or improvement of those
assets.
Restricted – This consists of net assets that are legally restricted by outside parties or by law
through constitutional provisions or enabling legislation. When both restricted and
unrestricted resources are available for use, generally it is the Borough’s policy to use
restricted resources first, then unrestricted resources when they are needed.
Unrestricted – This consists of net assets that do not meet the definition of “restricted” or
“net investment in capital assets.”
(g)
Revenues, Expenditures, and Expenses
Property Taxes
Property taxes are levied on the assessed value of taxable property as of January 1, and are payable
June 30 (June 30 and August 31 for residential property) for the subsequent year’s appropriations.
An enforceable lien is attached on all taxable property as of January 1. A deferred inflow of
resources is recorded in an amount equal to the property taxes due June 30, as significantly all such
amounts are levied for the subsequent year’s budget.
Property taxes billed and collected by the Borough include the portion attributable to the School
District.
Sales Taxes/Economic Impact Assistance
Effective September 12, 1991, the Borough repealed its sales tax ordinance. At the same time, the
Borough entered into an agreement with major property owners whereby the Borough would
receive annual Economic Impact Assistance payments. In April 2013, a new agreement was
negotiated with seven major property owners providing for annual payments totaling $5,000,000
through June 30, 2014. In April 2014, a new agreement was reached among the Borough and the
major property owners. Collectively, the major property owners will provide an annual total
payment of $7,500,00 for fiscal year 2015 and compounded interest of 3.1% during each of the
remaining four years thereafter.
36
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Intergovernmental Revenue
Grants and similar items are recognized as revenue as soon as all eligibility requirements have been
met.
Rent Revenue
Leasing activities consist principally of leasing vacant land for oil and gas exploration. All of the
lease agreements are classified as operating leases. Lease revenue is recognized when earned and
lease payments received in advance are deferred and amortized to revenue over the life of the lease.
Insurance Recoveries
Insurance recoveries are recognized when realized.
(h)
Recently Issued Accounting Pronouncements.
On July 1, 2013, the Borough adopted GASB Statement No. 65, Items Previously Reported as
Assets and Liabilities. Issued in March 2012, this statement establishes accounting and financial
reporting standards that reclassify as deferred outflows of resources or deferred inflows of
resources, certain items that were previously reported as assets and liabilities and recognizes as
outflows of resources or inflows of resources, certain items that were previously reported as assets
and liabilities. This Statement had no significant impact on the financial statements as of or for the
fiscal year ended June 30, 2014.
The Borough is currently reviewing its accounting practices to determine the potential impacts on
the financial statements for the following GASB Statements:

GASB Statement No. 68, this Statement provides guidance for employers offering defined
benefit pensions through plans administered as trusts or equivalent arrangements. It replaces
certain requirements related to plan trusts in Statement No. 27 Accounting for Pension by State
and Local Governmental Employers, as well as the requirements of Statement No. 50, Pension
Disclosures. This Statement establishes standards for measuring and recognizing liabilities,
deferred outflows of resources, and deferred inflows of resources, and expense/expenditures.
For defined benefit pensions, this Statement identifies the methods and assumptions that should
be used to project benefit payments, discount projected benefit payments to their actuarial
present value, and attribute that present value to periods of employee service. This Statement is
effective for the Borough’s financial statements for fiscal year ending June 30, 2015. The
Borough expects the implementation of this statement to be material.

GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the
Measurement Date, an amendment of GASB Statement No. 68. This Statement amends
Statement 68 to require that, at transition, a government recognize a beginning deferred outflow
of resources for its pension contributions, if any, made subsequent to the measurement date of
the beginning net pension liability. This statement should be applied simultaneously with
GASB Statement No. 68.
37
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
(2)
Stewardship, Compliance, and Accountability
(a)
Budgets and Budgetary Accounting
In accordance with the North Slope Borough Code of Ordinances (Code), the Borough follows these
procedures in establishing the budgetary data reflected in the financial statements:
1.
The Mayor submits to the Borough Assembly, by March 1, a proposed operating budget for
the General Fund, Power and Light Enterprise Fund, and Service Area 10 Enterprise Fund of
the Borough for the following fiscal year and a capital improvements program for the next
six fiscal years. Proposed expenditures and the means of financing them are included in the
operating budget and capital improvements program.
2.
By May 1, a public hearing is conducted by the Assembly to obtain the comments of the
residents of the Borough.
3.
The Assembly, by ordinance, shall adopt an operating budget and capital improvements
program by May 1 of the current fiscal year. If it fails to do so, the operating budget and
capital improvements program submitted by the Mayor shall be deemed adopted by the
Assembly.
4.
The Assembly may, by ordinance, amend the appropriation during the year if available
revenues exceed or are insufficient to meet the amount appropriated.
The Mayor may transfer part or all of any unencumbered balance between expenditure
classifications within a department or from one department to another excluding the education
function, debt service, or for cash deficits. Transfers may be made between Capital Projects funds
on projects utilizing general obligation bond proceeds only upon voter approval.
Budgeting for the General Fund is on a modified accrual basis in accordance with the Code. No
other governmental funds have legally adopted annual budgets. The Borough’s Power and Light and
Service Area 10 enterprise funds have legally adopted annual budgets prepared on the accrual basis.
The books of the Borough remain open until such time as the Assembly authorizes their closure. As
such, amendments to the appropriation may be made subsequent to June 30.
Expenditures may not legally exceed the total operating budget appropriation. Several
supplementary appropriations were made during the year in accordance with the Code.
Appropriations in governmental funds are encumbered upon issuance of purchase orders, contracts,
or other forms of legal commitments. Even though goods and services have not been received, the
transactions are reported as an assignment of fund balances in the year that the commitment is
made. While appropriations lapse at the end of the fiscal year, the succeeding year’s budget
ordinance specifically provides for the reappropriation of year-end encumbrances, which have been
approved for carryover by the Borough Administration and the Mayor. Appropriations for capital
improvement programs and various governmental grants carry over at year-end.
(b)
Excess of Expenditures over Appropriations
The Borough expenditures did not exceed the appropriations during the year.
38
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
(c)
Deficit Fund Balance
The Borough had no individual fund with deficit fund balance at June 30, 2014.
(3)
Deposits and Investments
As of June 30, 2014, the Borough had the following investments:
Investment maturities (in years)
Investment type
Central treasury:
Money market funds
Commercial paper
Debt securities:
U.S. Treasuries
U.S. agencies
Foreign corporate bonds
Corporate bonds
Fair value
$
Permanent fund:
Money market funds
Debt securities:
U.S. Treasuries
U.S. agencies
Foreign corporate bonds
Domestic corporate bonds
Equity securities:
Mutual funds
Alternative investments
Common collective funds
$
No scheduled
maturity
Less than 1
1 to 5
6 to 10
More than 10
104,831,733
21,993,041
104,831,733
-
21,993,041
-
-
-
409,315,542
7,306,222
36,239,558
123,548,916
-
133,549,655
21,175,300
48,370,202
235,436,061
4,498,425
15,064,258
54,403,350
40,329,826
240,808
8,551,096
2,566,989
12,224,268
703,235,012
104,831,733
225,088,198
309,402,094
49,121,730
14,791,257
10,589,200
10,589,200
-
-
-
-
19,558,834
7,308,129
4,333,573
35,966,187
-
511,835
1,541,650
4,113,155
245,101
3,821,738
14,633,883
9,580,432
260,455
10,991,646
5,865,247
6,802,573
8,799,008
148,042,443
164,806,144
180,856,745
148,042,443
164,806,144
180,856,745
-
-
-
-
571,461,255
504,294,532
2,053,485
22,813,877
20,832,533
21,466,828
1,274,696,267
609,126,265
227,141,683
332,215,971
69,954,263
36,258,085
(a) Interest Rate Risk
The Borough does not have a formal investment policy that limits investment maturities as a means
of managing its exposure to fair value losses arising from increasing interest rates.
(b)
Credit Risk
Borough Code authorizes investments in the following: U.S. Treasury bills, notes, and bonds; any
debt instrument with a direct U.S. government guarantee; U.S. government agencies securities or
agency-sponsored securities; repurchase agreements, secured by obligations consisting only of those
investment instruments authorized by Code; banker’s acceptances; commercial paper with a rating
not less than A-1, P-1, or F-1; Certificates of Deposit; bonds or other taxable yield debt instruments
of this state, its agencies, municipalities, any other state, or domestic corporation, which at the time
of investment have an investment grade rating of a nationally recognized rating agency; any
investment instrument authorized in terms of any trusts the Borough may administer; shares of
mutual funds with portfolios consisting exclusively of assets that are direct obligations of the
U.S. government; government-backed securities; mortgage-related securities; asset-backed
securities having one of the two highest ratings of a nationally recognized rating agency; and
investment pools as authorized by the Alaska Statutes.
39
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
In addition to the above, certain additional investments are authorized for the Permanent Fund only.
They are as follows: common stock, preferred stock, interest-bearing obligations of corporations
having an option to convert into common stock; bond, note, or other debt securities of nondomestic
governments, agencies, and corporations with a domestic rating of investment grade of a nationally
recognized rating agency; securities of nondomestic corporations, including common and preferred
stock; closed- or open-end mutual funds whose assets are invested in similar obligations; and
private equity, absolute return, and real asset funds, and the sale (writing) and repurchase of call
options, provided the Permanent Fund owns the security in which the options are written.
At June 30, 2014, the Borough’s foreign currency denominated government bonds and corporate
bonds were rated as follows:
Moody’s
Investor’s
Service
Aaa
Aa2 to Aaa
Baa2 to Aaa
Investment
Foreign government bonds
Foreign corporate bonds
Domestic corporate bonds
(c) Concentration of Credit Risk
The Borough places no limit on the amount it may invest in any one issuer; however, no more than
60% of the Permanent Fund may be invested in nondomestic investments. With the exception of the
Permanent fund, the Borough has no investments from any one issuer that represents 5% or more of
total investments other than U.S. government securities or external investment pools such as
collective trusts. The Permanent Fund does have two investments that exceed 5% of its total
investment as follows:
Investment
Adage Capital Partners, L.P.
Angeles Absolute Return Fund, L.T.D.
(d)
$
Amount
37,998,713
58,569,704
Custodial Credit Risk – Deposits
In the case of deposits, this is the risk that, in the event of a bank failure, the Borough’s deposits
may not be returned to it. The Borough’s deposit policy for custodial credit risk is to collateralize its
primary demand deposit account for 100% of the uninsured balance. As of June 30, 2014, the
Borough’s deposits were covered by federal depository insurance or by collateral held by the
Borough’s agent or pledging financial institution’s trust department or agent in the name of the
Borough and, thus, had no deposits that were exposed to custodial credit risk.
(e) Custodial Credit Risk – Investments
For an investment, this is a risk that, in the event of the failure of the counterparty, the Borough will
not be able to recover the value of its investments or collateral securities that are in the possession
of an outside party. The Borough had no debt securities exposed to custodial credit risk at June 30,
2014 because the investments were held by a custodian in the name of the Borough.
40
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
(f)
Foreign Currency Risk
The Borough’s exposure to foreign currency risk derives from its positions in foreign currency
denominated debt and equity securities. The Borough’s investment policy permits the Permanent
Fund to invest up to 20% of total Permanent Fund investments in foreign currency denominated
investments. The Borough holds no foreign currency denominated debt or equity securities at June
30, 2014, and thus, is not exposed to any foreign currency risk at June 30, 2014.
(g)
Reconciliation to Statement of Net Position
Deposits and investments of the primary government are reported as follows on the statement of net
position, as of June 30, 2014:
Cash and
investments
with central
treasury
$
134,347,384
703,235,012
Cash and Restricted Cash
Investments
Total primary
government
(4)
$
837,582,396
Other cash
and
investments
216,407
571,461,255
Total
134,563,791
1,274,696,267
571,677,662
1,409,260,058
Property Taxes, Loans, Trade Accounts, and Other Receivables
Property taxes, loans, trade accounts, and other receivables as of June 30, 2014 for the Borough’s
individual major funds and nonmajor funds in the aggregate, including the applicable allowances for
uncollectible accounts, are as follows:
Governmental
Property taxes
Loans
Trade accounts
Other
$
Allowance for
uncollectible
accounts
$
General
3,476,422
38,788
2,265,290
5,780,500
(1,343,285)
4,437,215
Business type activities
2,455,144
2,455,144
2,317,296
2,317,296
2,056,881
2,056,881
Real Property
Management
48,735
48,735
(2,455,144)
-
(1,397,348)
919,948
(68,479)
1,988,402
48,735
Nonmajor
Power &
Light
41
Service
Area 10
Nonmajor
122,065
Total
3,476,422
2,493,932
4,544,977
2,265,290
12,780,621
(122,065)
-
(5,386,321)
7,394,300
122,065
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
(5)
Capital Assets
Capital asset activity for the year ended June 30, 2014 was as follows:
(a)
Primary Government
Beginning
balance
Governmental activities:
Capital assets, not being
depreciated:
Land
Construction work-inprogress
$
Total
Capital assets, being
depreciated:
Gas fields
Buildings and
improvements
Improvements other
than buildings
Equipment
Infrastructure
Total
Less accumulated
depreciation for:
Gas fields
Buildings and
improvements
Improvements
other than
buildings
Equipment
Infrastructure
Total
Total capital
assets being
depreciated
Total
governmental
activities, net
$
Transfers
and deletions
Increase
Ending
balance
31,646,147
-
-
31,646,147
61,459,110
28,901,417
31,637,175
58,723,352
93,105,257
28,901,417
31,637,175
90,369,499
180,502,625
14,989,398
-
195,492,023
955,363,403
20,325,972
-
975,689,375
55,584,203
135,162,968
778,094,088
15,180,529
9,667,031
839,405
-
55,584,203
149,504,092
787,761,119
2,104,707,287
60,162,930
839,405
2,164,030,812
22,459,949
3,966,950
-
26,426,899
395,733,538
21,964,751
-
417,698,289
19,542,976
93,425,368
235,883,303
1,271,922
8,950,866
11,784,557
923,313
-
20,814,898
101,452,921
247,667,860
767,045,134
47,939,046
923,313
814,060,867
1,337,662,153
12,223,884
(83,908)
1,349,969,945
1,430,767,410
41,125,301
31,553,267
1,440,339,444
42
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Beginning
balance
Business-type activities:
Capital assets, not being
depreciated:
Land
Construction work-inprogress
$
Total
Capital assets, being
depreciated:
Property and plant
Equipment
Total
Less accumulated
depreciation for:
Property and plant
Equipment
Total
Total capital
assets being
depreciated
Total
business-type
activities, net
$
Transfers
and deletions
Increase
Ending
balance
258,231,048
-
-
258,231,048
1,842,650
20,592,118
-
22,434,768
260,073,698
20,592,118
-
280,665,816
137,271,465
42,116,518
10,078,606
5,235,461
554,418
147,350,071
46,797,561
179,387,983
15,314,067
554,418
194,147,632
96,387,269
33,684,831
2,795,659
2,434,966
554,418
99,182,928
35,565,379
130,072,100
5,230,625
554,418
134,748,307
49,315,883
10,083,442
-
59,399,325
309,389,581
30,675,560
-
340,065,141
43
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Depreciation expense was charged to the departments and functions of the primary government as follows:
Governmental activities:
General government
Public works
Public safety
Health and social services
Wildlife management
Primary and secondary education
Higher education
Total governmental activities
$
$
Business-type activities:
Service Area 10
Power and Light
Real Property Management
Total business-type activities
(b)
$
$
6,390,125
25,819,044
5,176,647
1,929,707
171,287
8,104,010
348,226
47,939,046
837,927
4,373,860
18,838
5,230,625
Construction Commitments
The Borough has active construction projects as of year-end. At year-end, the Borough’s
commitments with contractors are as follows:
Project
authorization
Education and service center
facilities
Public roads, streets, watercourse,
and flood control facilities
Public housing
Water facilities
Sewage treatment disposal facilities
Airport and airport terminal facilities
Light, power, and heating systems
Public safety facilities
Sanitary facilities
Communications
General capital projects
Health facilities
Library and cultural facilities
Administration facilities
Total
Expended
through
June 30, 2014
Encumbered
at June 30,
2014
$
62,143,000
34,611,978
4,938,538
$
138,763,000
6,411,000
127,755,000
35,701,000
87,327,000
124,255,000
55,441,000
40,921,000
24,041,000
263,136,000
7,785,000
5,750,000
8,345,000
987,774,000
88,343,620
3,222,572
93,085,940
25,480,585
55,661,027
74,802,441
22,950,740
7,013,347
2,681,030
208,335,262
4,301,412
4,091,366
4,960,476
629,541,796
18,785,190
25,197
9,607,449
6,335,935
15,725,899
13,240,487
1,071,092
249,314
4,132,663
20,411,740
1,452,098
434,406
594,258
97,004,266
44
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
(6) Interfund Receivables, Payables, and Transfers
(a) Interfund Receivables and Payables
A summary of individual interfund receivables and payables is as follows:
Payable
Permanent
fund
Receivable:
General fund:
Due to (from) $
Advances to
Permanent fund
Total
$
18,585,598
18,585,598
Service
Area
10
Power
&
Light
2,999,109
2,999,109
5,694,438
5,694,438
Real
property
management
fund
Nonmajor
governmental
funds
558,507
558,507
1,215,243
1,215,243
Total
25,495,279
2,999,109
558,507
29,052,895
The interfund General Fund receivable comprises Central Treasury cash owed to the General Fund
by the Service Area 10, Power and Light Enterprise Fund, and RELI Loan Program Fund of
$2,999,109, $5,694,438, and $1,215,243, respectively, and the $18,585,598 payable owed to General
Fund by the Permanent Fund, representing the annual Assembly-approved transfer. The $558,507
receivable of the Permanent Fund represents earnings of the Real Property Management Fund that
are to be invested in the Permanent Fund. These receivables also explain the offsetting payables
recorded for the respective funds noted.
All balances are expected to be settled within the next fiscal year.
On July 10, 2012, the Assembly approved a long-term advance from the General Fund to the
Enterprise Fund Service Area 10 in the principal amount of $10,000,000 as well as interest at a rate
of 3.25%. The principal balance is due in full on June 30, 2015. Interest will accumulate on the
outstanding balance with interest payments beginning January 1, 2014. The principal amount
outstanding and accumulated interest as of June 30, 2014 was $2,999,109.
(b) Transfers
A summary of interfund transfers is as follows:
Transfers out
General
Transfers in:
General fund
$
Permanent fund
Nonmajor governmental
funds
25,213,000
Power and light
14,174,587
Nonmajor enterprise funds
5,000,000
Permanent
Real Property
Management
Fund
18,585,600
-
558,507
41,682,000
-
60,267,600
558,507
-
-
-
25,213,000
14,174,587
5,000,000
$ 44,387,587
18,585,600
558,507
41,682,000
105,213,694
45
Nonmajor
Governmental
Funds
Total
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Significant transfers were as follows:
(c)

General Fund transferred $25,213,000 to Capital Projects Funds for the acquisition and
construction of capital assets;

General Fund transferred $19,174,587 to the Power and Light Fund and Home Assistance
Loan Fund to subsidize operations and commence housing projects;

Capital Projects Funds transferred $41,682,000 to the General Fund to repay advances
awaiting bond proceeds to be received during the year ending June 30, 2014; and

Permanent Fund accrued its annual transfer of $18,585,600 to the General Fund.
Interfund Charges
In the governmental statements, the General Fund has charged an administration support fee to
Service Area 10 and Power and Light based on estimated actual cost during the year ended June 30,
2014 in the amount of $1,249,549 and $1,689,357 respectively.
(7) Long-Term Obligations
(a) General Obligation Bonds
The Borough issues general obligation bonds to provide funds for the acquisition and construction of
major capital facilities. General obligation bonds are direct obligations and pledge the full faith and
credit of the Borough. These bonds generally are issued as 10-year current interest bonds with
amounts of principal maturing in varying increments. General obligation bonds currently outstanding
are as follows:
Bond
principal
$28,405,000 2005 Series A for construction of capital projects and for refund
of general obligation bonds consisting of a remaining single current interest
bond of $28,405,000 with a maturity value of $29,812,388 due in semiannual
installments ranging from $703,694 to $29,108,694 on December 30 and June
30, through June 30, 2015, interest at 4.96%.
$38,855,000 2006 Series A for construction of capital projects consisting of
remaining current interest bonds of $33,075,000 with a maturity value of
$35,738,750 due in semiannual installments ranging from $505,000 to
$20,705,000 on December 30 and June 30, through June 30, 2016,
interest at 5.00%.
46
$
28,405,000
33,075,000
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Bond
principal
$51,360,000 2007 Series A for construction of capital projects consisting of
remaining current interest bonds of $50,715,000 with a maturity value of
$57,164,362 due in semiannual installments ranging from $771,875 to
$31,646,875 on December 30 and June 30, through June 30, 2017, interest
at 4.25% to 5.00%.
$44,485,000 2008 Series A for construction of capital projects consisting of
remaining current interest bonds of $29,405,000 with a maturity value of
$38,146,675 due in semiannual installments ranging from $305,775 to
$19,258,013 due on December 30 and June 30, through June 30, 2019,
interest at 5.50% to 5.75%.
$45,320,000 Series B for construction of capital projects consisting of
remaining current interest bonds of $45,320,000 with a maturity value of
$59,754,986 due in semiannual installments ranging from $39,203 to
$15,737,486 due on December 30 and June 30, through June 30, 2023,
interest at 4.926% to 5.426%.
$83,110,000 2010 Series A for construction of capital projects consisting of
remaining current interest bonds of $15,835,000 with a maturity value of
$21,186,350 due in semiannual installments ranging from $60,725 to
$2,965,725 due on December 30 and June 30, through June 30, 2020,
interest at 4.00% to 4.181%.
$33,020,000 2011 Series A for construction of capital projects consisting of
remaining current interest bonds of $8,340,000 with a maturity value of
$17,342,800 due in semiannual installments ranging from $166,800 to
$8,506,800 due on December 30 and June 30, through June 30, 2015,
interest at 4.00%.
$74,790,000 2011 Series B for construction of capital projects consisting of
remaining current interest bonds of $28,580,000 with a maturity value of
$30,582,900 due in semiannual installments ranging from $351,600 to
$16,156,000 due on December 30 and June 30, through June 30, 2016,
interest at 5.00%.
$92,155,000 2012 Series A for construction of capital projects consisting of
remaining current interest bonds of $23,525,000 with a maturity value of
$26,536,800 due in semiannual installments ranging from $35,625 to
$6,089,888 due on December 30 and June 30, through June 30, 2022
interest at 3.00% to 5.00%.
$100,775,000 2013 Series A for construction of capital projects consisting of
remaining current interest bonds of $43,995,000 with a maturity value of
$48,656,200 due in semiannual installments ranging from $37,125 to
$21,816,000 due on December 30 and June 30, through June 30, 2023
interest at 2.00% to 5.00%.
Total General Obligation Bonds
50,715,000
29,405,000
45,320,000
15,835,000
8,340,000
28,580,000
23,525,000
43,995,000
$
47
307,195,000
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
(b) Service Area 10 Revenue Bonds
Bond
principal
$62,200,000 Series 2014 for cost of construction, additions, improvements,
betterments, repair, reconstruction and acquisition of new water and wastewater
treatment and a new heater water facility in Service Area 10. The project
consists of remaining current interest bonds of $62,200,000 with a maturity
value of $99,357,098 due in semi-annual installments ranging from $110,457 to
$4,816,025 on December 30, and June 30, through June 30, 2034, interest at
3.00% to 5.25%. The revenue bonds are payable from and secured by a pledge
of revenues, generated by the Service Area 10 water and wastewater facilities. $
Total Service Area 10 Revenue Bonds
$
62,200,000
62,200,000
Annual debt service requirements to maturity for general obligation and revenue bonds are as follows:
General Obligation Bonds
Fiscal
Year
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
General
obligation
bonds
$ 94,285,000
65,315,000
43,575,000
30,850,000
29,775,000
43,395,000
307,195,000
Revenue Bonds
Interest
14,065,798
10,067,898
7,153,598
5,187,648
3,724,501
4,201,893
44,401,336
Service Area 10
Revenue
bonds
2,135,000
2,200,000
2,265,000
2,360,000
13,680,000
17,515,000
22,045,000
62,200,000
Interest
3,702,441
2,897,563
2,833,513
2,767,513
2,676,913
11,493,315
7,660,277
3,125,563
37,157,098
Total
112,053,239
80,415,461
55,762,111
41,070,161
38,536,414
72,770,208
25,175,277
25,170,563
450,953,434
(c) Build America Bonds
In October 2009, the Borough issued $45,320,000 of Taxable Build America Bonds (Series 2009B).
The Borough is reimbursed for 35% of the interest associated with these bonds by the U.S. Treasury
through the American Recovery and Reinvestment Act.
(d) Capital Leases
The Borough has a noncancelable 20-year lease for rental of certain buildings with a net book value
of $975,531 ($17,411,316 less accumulated amortization of $16,435,785). The Borough accounts for
this lease as a capital lease in its governmental-type funds. Total amortization expense for the lease
was $870,566 during the year ended June 30, 2014.
48
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Following is a schedule of future lease payments under the leases together with the present value of
lease payments as of June 30, 2014:
Fiscal year ending June 30:
2015
Total lease payments
Less amount representing interest
Present value of required lease payments
$
$
120,833
120,833
601
120,232
(e) Solid Waste Landfill Closure and Postclosure Care Costs
State and federal laws and regulations require the Borough to place a final cover on all of the
Borough’s landfill sites when they stop accepting waste and to perform certain maintenance and
monitoring functions at each site for 5 to 15 years after closure depending upon the type of landfill.
Although closure and postclosure care costs will be paid only near or after the date that each landfill
stops accepting waste, the Borough reports a portion of these closure and postclosure care costs as an
operating expense in each period based on landfill capacity used as of each balance sheet date.
Governmental Activities
Barrow Landfills
The Borough stopped accepting solid waste for its Barrow landfill on June 30, 2008. The Borough
has recorded a liability of $1,781,347 in the government-wide financial statements for closure and
30 years of postclosure care costs. As owner and operator of the landfill, the Borough is required to
provide the financial assurance for the full amount of the estimated costs of closure. In accordance
with a Compliance Order by Consent with the Alaska Department of Environmental Conservation,
the Borough has provided a financial assurance of $15 million for the closure of the Barrow landfill.
However, since agencies of the U.S. government were the original owners of the landfill, the
Borough negotiated with the Department of Defense (DOD) for assistance in funding the costs of the
landfill closure. During 2005, a settlement was reached with the DOD whereby the Borough received
$15,930,000 in exchange for assuming all liabilities related to the cost of closure and postclosure
care. The settlement proceeds were received in August 2005. The Borough has opened a second
landfill in Barrow and has recorded a liability of $796,424 equal to 100% of the closure and
postclosure care costs of one cell.
49
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Village Landfills
The Borough has seven village landfill sites – Anaktuvuk Pass, Atqasuk, Kaktovik, Nuiqsut, Point
Hope, Point Lay, and Wainwright – for which they are required to perform certain maintenance and
monitoring functions at each site for five years after closure. The $11,926,544 reported as village
landfill closure and postclosure care liability at June 30, 2014 represents the total cumulative amount
reported to date based on the use of the estimated capacity of the landfills as noted below:
Village
Anaktuvuk Pass
Atqasuk
Kaktovik
Nuiqsit
Point Hope
Point Lay
Wainwright
Percentage
of landfill
capacity used
at June 30,
2014
51 %
57
50
64
88
69
69
The Borough will recognize the remaining estimated cost of closure and postclosure care of
$6,323,168 as the remaining estimated capacity of each landfill is filled. These amounts are based on
what it would cost to perform all closure and postclosure care in 2014. Actual costs may differ due to
inflation, changes in technology, or changes in regulations. The Borough expects to begin closing
these landfills in the year 2020.
Business-Type Activities – Service Area 10
The Borough has a landfill in Service Area 10 for which they are required to perform certain
maintenance and monitoring functions at the site for 30 years after closure. The $5,490,289 reported
as landfill closure and postclosure care liability at June 30, 2014 represents the total cumulative
amount reported to date based on the use of 89% of the estimated capacity of the landfill.
The Borough will recognize the remaining estimated cost of closure and postclosure care of
$700,435 as the remaining estimated capacity is filled. These amounts are based on what it would
cost to perform all closure and postclosure care, for the current cell in 2014. Actual costs may differ
due to inflation, changes in technology, or changes in regulations. The Borough has acquired land
adjacent to the existing landfill for which it expects to develop a second cell.
The Borough is required by state and federal laws and regulations to demonstrate financial assurance
for closure, postclosure, and/or corrective action by satisfying the local government financial test and
government guarantee. The Borough satisfies the financial and public notice components of this test.
50
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
(f) Changes in Long-Term Obligations
Long-term liability activity for the year ended June 30, 2014 was as follows:
Governmental activities:
Bonds payable:
General obligation bonds
Plus deferred amounts:
For issuance of premiums
Total bonds payable
Accreted principal on
capital appreciation bonds
Capital leases
Barrow landfill closure and
postclosure care costs
Village landfill closure and
postclosure care costs
Compensated absences
Health claims incurred
but not reported
Total governmental activities
Business-type activities:
Service Area 10 bonds payable:
Revenue bonds
Plus deferred amounts:
For issuance premiums
Service Area 10 postclosure
care costs
Compensated absences
Total business-type activities
Balance
June 30,
2013
Additions
353,985,921
100,775,000
147,565,921
307,195,000
94,285,000
15,178,150
369,164,071
3,367,104
104,142,104
3,942,027
151,507,948
14,603,227
321,798,227
3,942,025
98,227,025
15,711,518
1,517,202
-
15,711,518
1,396,970
120,232
120,232
5,173,880
16,382
2,612,491
2,577,771
851,296
12,908,757
4,574,751
9,088,830
982,213
8,964,309
11,926,544
4,699,272
2,511,155
$
1,350,000
410,400,179
19,289,185
132,536,501
18,632,185
199,807,634
2,007,000
343,129,046
2,007,000
103,716,708
$
-
62,200,000
-
62,200,000
-
-
3,713,181
-
3,713,181
123,459
5,165,759
190,489
5,356,248
324,530
594,476
66,832,187
548,290
548,290
5,490,289
236,675
71,640,145
147,611
271,070
$
$
Balance
June 30,
2014
Reductions
Due within
one year
For governmental activities, compensated absences and health claims incurred but not reported are
generally liquidated by the General Fund.
(8) Retirement Commitments
(a) Alaska Public Employees’ Retirement System (PERS)
Plan Description
Employees hired prior to July 1, 2006, and employees hired after July 2, 2006 who have PERS
enrollment from prior employment, participate in PERS Tiers I-III, a defined benefit cost sharing
plan. Employees hired after July 1, 2006 who have no prior PERS participating employment
participate in PERS Tier IV, a defined contribution plan. Both plans were established and are
administered by the State of Alaska (State) to provide pension, postemployment healthcare, and
death and disability benefits to eligible employees.
51
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
The Alaska Legislature Senate Bill 125, signed into law April 9, 2008, converted the Public
Employees Retirement System to a cost sharing plan and provided for an integrated system of
accounting for all employers. Under the integrated system, the PERS defined benefit plans’ unfunded
liability will be shared among all employers. The Borough’s net pension and OPEB obligation of
$4,474,072 was eliminated on July 1, 2008 because it is no longer a liability of the employer under
the new plan. The Alaska Legislature Senate Bill 125 also established a uniform PERS contribution
rate of 22% of participating employees’ covered payroll. The conversion was effective July 1, 2008.
PERS acts as a common investment and administrative agent for political subdivisions within the
State. Benefit and contribution provisions are established by Chapter 35 of Alaska Statute Title 39,
and may be amended only by state legislature. Employee participation in the plan is mandatory for
permanent employees scheduled to work at least 15 hours a week. There is no optional participation
for other employees.
PERS issues a publicly available financial report that includes financial statements and required
supplementary information. That report may be obtained by writing to State of Alaska, Department
of Administration, Division of Retirement and Benefits, P.O. Box 110203, Juneau, Alaska 998110203 or by calling 907-465-4460.
Benefits are vested after five years of credited service. Employees enrolled prior to July 1, 1986 with
five or more years of credited service are entitled to annual pension benefits beginning at normal
retirement age 55 or early retirement age 50. For employees enrolled after June 30, 1986, the normal
and early retirement ages are 60 and 55, respectively. Employees with 30 (20 for police and fire
personnel) or more years of credited service may retire at any age and receive a normal benefit.
The system also provides death and disability benefits and major medical benefits. Major medical
benefits are provided without cost to all members first enrolled before July 1, 1986. Members first
enrolled after June 30, 1986 who have not reached age 60 may elect to pay for major medical
benefits.
Funding and Annual Cost
Under State law, covered employees are required to contribute 6.75% (7.50% for police and fire
personnel) of their annual covered payroll and the Borough is now required to contribute a flat rate
of 22%. In accordance with the provisions of GASB Statement No. 24, Accounting and Financial
Reporting for Certain Grants and Other Financial Assistance, the Borough has recorded the State
PERS on-behalf payment in the amount of $9,421,976 as revenue and expenditures/expenses.
However, because the Borough is not statutorily obligated for these payments, this amount is
excluded from pension and other postemployment benefit (OPEB) cost below.
52
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
The Borough’s contributions for 2014 were determined as part of the June 30, 2010 actuarial
valuation and are as follows:
Year ended June 30
2014
2013
2012
$
Annual
pension
cost
3,886,013
3,350,431
3,410,925
Annual
OPEB
cost
4,151,318
4,272,060
4,153,626
Total
8,037,331
7,622,491
7,564,551
The Borough’s contributions to PERS for the years ended June 30, 2014, 2013, and 2012 was equal
to the required contributions for each year.
(b) Alaska Public Employees’ Tier IV Defined Contribution Retirement Plan
During fiscal year 2007, the State introduced the Public Employees’ Tier IV Defined Contribution
Retirement Plan. This plan is a hybrid plan that includes the defined contribution retirement account
and benefits that are traditionally associated with defined benefit retirement plans, such as
occupational death and disability benefits. These plans are intended to qualify under the Internal
Revenue Code §401(a) and 414(k). Also included in the plan are a retiree medical insurance plan and
a separate Health Reimbursement Arrangement (HRA) account that will help retired members pay
medical premiums and other eligible medical expenses not covered by the medical plan. This plan is
for employees of participating employers who enter service on or after July 1, 2006 and meet the
participant criteria.
Employees are required to contribute 8% of their annual covered salary, and the Borough is required
to make the following contributions:
Individual account
Health reimbursement arrangement (HRA)*
Retiree medical plan
Occupational death and disability benefits
Others
Tier IV
5.00 %
3.00
0.48
1.14
9.67
Police/fire
Tier IV
5.00
3.00
0.48
0.20
8.68
* HRA-AS 39.30.370 requires that the employer contribute "an amount equal to three percent (3%)
of the employer's average annual employee compensation." For actual remittance, this amount is
calculated as a flat rate for each full-time or part-time employee per pay period.
53
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Employees are immediately vested in their own contributions and vest 25% per year in employer
contributions. The Borough and employee contributions to PERS including retirement and retiree
medical and health reimbursement arrangements and death/disability for the year ended June 30,
2014 were as follows:
Defined contribution plan contributions:
Borough
Employees
Defined benefit unfunded liability:
Borough
$
$
(9)
2,446,162
2,264,344
3,776,412
8,486,918
Employee Savings Plans
(a) Employee Thrift Plan
The Borough has a defined contribution Employee Thrift Plan covering all Borough and School
District employees. This plan is exempt from income tax under Internal Revenue Code
Section 401(a). Benefit and contribution provisions are established by the Borough and may be
amended only by the Borough. In accordance with this plan document, Borough employees that meet
eligibility criteria and decide to participate in the plan must make a mandatory 4% before-tax
contribution and may make voluntary after-tax contributions up to 10% of annual compensation.
Permanent employees who are at least 18 and have completed 90 days of employment are eligible to
participate. Participants are immediately 100% vested in their employee contributions plus the actual
earnings thereon. The Borough is the administrator of the plan.
(b) Deferred Compensation Plan
The Borough has a deferred compensation plan created and amended in accordance with Internal
Revenue Code Section 457. This plan is available to all Borough employees who have completed
30 days of service. The deferred compensation is not available to employees until termination,
retirement, death, or unforeseeable emergency. The Borough is the administrator of the plan.
All amounts deferred under this plan are held in a trust that was established for the exclusive benefit
of plan participants.
The Borough believes that the plan does not meet the reporting criteria for inclusion as a fiduciary
fund.
(10)
Service Area 10
The Service Area 10 fund was formed to develop, operate and maintain a system for potable water
production and distribution and to develop, operate and maintain a system for sanitary waste collection
and disposal in Service Area 10. The Borough Code also provides that no facility for production and
distribution of potable water and no facility for treatment, collection and disposal of sanitary waste,
respectively, other than those operated by the Borough may be constructed or substantially. As
discussed in note 7, the revenues and other income from the water and wastewater operations are
pledged to pay revenue bonds issued by the Borough. Condensed financial statements for Service Area
10 are as follows:
54
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Service Area 10
Condensed Statement of Net Position
June 30, 2014
Water and
wastewater
Assets
Current assets:
Cash and ivestment with central treasury
Accounts receivable, net
Internal balances
Total current assets
Non-current assets:
Restricted cash
Construction work in progress
Capital assets, net
Total non-current assets
Total assets
$
$
Liabilities and Net Position
Current liabilities:
Accounts payable
Compensated absences
Other liabilities
Due to other funds
Total current liabilities
Non-current liabilities:
Accrued closure and postclosure costs
Revenue bonds payable
Premium on issuance of debt
Total non-current liabilities
Total liabilities
Net position:
Net investment in capital assets
Unrestricted
Total net position
Total liabilities and
net position
$
$
55
Solid
waste
Total
9,127,177
1,193,041
(6,084,459)
4,235,759
3,081,180
795,361
6,084,459
9,961,000
12,208,357
1,988,402
14,196,759
59,274,634
16,169,141
3,316,026
78,759,801
82,995,560
1,040,450
4,280,399
5,320,849
15,281,849
59,274,634
17,209,591
7,596,425
84,080,650
98,277,409
8,656,893
48,851
57,030
8,762,774
1,460,449
38,695
45,175
2,999,109
4,543,428
10,117,342
87,546
102,205
2,999,109
13,306,202
62,200,000
3,713,181
65,913,181
74,675,955
5,490,289
5,490,289
10,033,717
5,490,289
62,200,000
3,713,181
71,403,470
84,709,672
5,559,403
2,760,202
8,319,605
5,251,075
(2,943)
5,248,132
10,810,478
2,757,259
13,567,737
82,995,560
15,281,849
98,277,409
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Service Area 10
Condensed Statement of Revenues, Expenses and Changes in Net Position
Year Ended June 30, 2014
Water and
wastewater
Operating revenue
Operating expenses:
Salaries and benefits
Contractual and professional fees
Other operating expenses
Depreciation
Closure and postclosure costs
$
Total operating expenses
Operating income
Nonoperating revenue (expenses):
Investment earnings
Bond issuance costs
Intergovernmental revenues
Income (loss) before
transfers and capital
contributions
Transfers of capital assets from governmental
activities
Change in net position
Net position, beginning of year
Net position, end of year
$
56
Solid
waste
Total
16,834,303
11,351,058
28,185,361
1,141,217
10,704,992
1,098,453
391,648
-
768,955
8,515,979
520,881
446,279
324,530
1,910,172
19,220,971
1,619,334
837,927
324,530
13,336,310
10,576,624
23,912,934
3,497,993
774,434
4,272,427
249
162
-
411
(876,268)
75,090
88,744
(876,268)
163,834
2,697,064
863,340
3,560,404
105,394
-
105,394
2,802,458
863,340
3,665,798
5,517,147
4,384,792
9,901,939
8,319,605
5,248,132
13,567,737
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
Service Area 10
Condensed Statement of Cash Flows
Year Ended June 30, 2014
Water and
wastewater
Cash flows from operating activities
Cash flows from noncapital
financing activities
Cash flows from capital and related
financing activities
$
Total
6,359,897
1,661,359
8,021,256
6,084,459
(6,084,459)
-
44,710,061
(1,522,811)
43,187,250
249
162
411
Net increase in cash and
cash equivalents
57,154,666
(5,945,749)
51,208,917
Beginning cash and cash equivalents
11,247,145
9,026,929
20,274,074
68,401,811
3,081,180
71,482,991
Cash flows from investing activities
Ending cash and cash equivalents
(11)
Solid
waste
$
Risk Management and Self-Insurance
The Borough is self-insured for various risks with coverage in excess thereof provided by private
carriers. The Borough retains risk of loss for up to a maximum of $250,000 for general, auto, and
professional liability claims, $500,000 for each property damage claim, and $1,000,000 lifetime per
individual for health benefit claims. Settled claims have not exceeded commercial coverage in any of the
past three fiscal years.
The self-insurance program is accounted for primarily in the General Fund. Health benefit and general
liability expenditures are accrued in the government-wide statements, including estimates of losses
incurred but not reported based on historical experience adjusted for current trends. Other losses incurred
but not reported are not material. In addition, the Borough has designated $5,500,000 of the unreserved
fund balance in the General Fund to cover self-insured retention in the event of multiple losses. Changes
in the balances for claims liabilities for the years are as follows:
Claims liabilities, July 1
Incurred claims
Claims payments
$
Claims liabilities, June 30
$
57
2014
1,350,000
19,289,185
(18,632,185)
2013
2,385,000
17,678,354
(18,713,354)
2,007,000
1,350,000
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
(12)
Commitments and Contingent Liabilities
(a) Litigation
There are various lawsuits pending in courts within the State to which the Borough is a party. In the
opinion of management and the Borough attorney, no litigation is pending, or to their knowledge,
threatened, which is likely to result, either individually or in the aggregate, in final judgments against
the Borough, which would have a material effect on its financial statements, other than noted below.
Outside counsel has been retained to provide legal representation on matters involving the annual
assessed value of the Trans Alaska Pipeline System (TAPS). Beginning in 2005, the methodology
used by the State to determine the assessed value of TAPS was changed and resulted in an increased
assessed value. The owners of TAPS and certain municipalities other than the Borough appealed the
assessment as too high and as too low, respectively. In 2012, the Superior Court ruled in favor of the
Borough and the Borough levied and received $51.2 million in additional taxes and interest. In 2014,
the Alaska Supreme Court upheld the Superior Court’s decision regarding the 2006 valuation of the
Trans Alaska Pipeline System. Oral arguments before the Alaska Supreme Court on the matter
pertaining to the Superior Court’s decision on the 2007, 2008 and 2009 values of the Trans Alaska
Pipeline System are currently scheduled for November 2014. If the Supreme Court overturns that
judgment, the Borough may have to refund property taxes for tax years 2007 – 2014 in an amount up
to $130 million. Management and legal counsel for the Borough believe that there is a high
likelihood of the Supreme Court upholding the Superior Court’s judgment; however, the ultimate
outcome is not presently determinable.
Outside counsel has been retained to provide legal representation on a matter involving the State of
Alaska, Department of Revenue's claim that the Borough was not entitled to receive approximately
$60 million in property taxes related to the above TAPS matter. The State claims the Borough
exceeded the State's tax cap for supplemental levies and filed a complaint for declaratory judgment
requiring the Borough to pay the State $60 million. A variety of rulings regarding discovery in the
matter are currently pending, which has delayed the original trial date beyond August 2014. It is
now expected that trial on this matter will likely occur after May 2015. Management and legal
counsel for the Borough believe that there is a high likelihood that the Borough will prevail in this
matter, however, the ultimate outcome is not presently determinable.
(b) Environmental Contingencies
In October 2012, the North Slope Borough was notified by the Alaska Department of Environmental
Conservation (“ADEC”) about contamination at an industrial site (South Pad) in Barrow, Alaska,
which led to an investigation by the Environmental Protection Agency (“EPA”). Preliminary testing
of facilities, materials and soils located on the site, as well as disposal of solid and liquid waste, has
been accomplished, and the Borough is now working with qualified vendors to develop remediation
plans for any identified areas of contamination. Draft remediation plans will then be submitted to
ADEC for review and approval, after which the Borough will contract with qualified vendors to
complete work required under the plans. As of the date of this report, management and legal counsel
for the Borough are unable to accurately determine the scope of the contamination and the associated
cost of any required remediation efforts. On November 5, 2012, the Borough Assembly approved a
$1 million appropriation for preliminary cleanup work and that work is ongoing. Additionally, in
FY14, the Borough voters approved an additional $2,500,000 in capital funds dedicated to advance
mitigation efforts at South Pad.
58
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
(c) Grants
The Borough receives numerous grants, which are subject to review and audit by the grantor
agencies. Such audits could lead to requests for reimbursement for expenditures disallowed under the
terms of the grant. Management believes that such disallowances, if any, would not be material to the
financial statements.
(13)
Related Parties
In the normal course of business, the Borough may contract for goods or services from vendors whose
shareholders, officers, or employees may also be associated with the Borough as an official, assembly
member, or employee. Such purchases during 2014 in aggregate was approximately $68.5 million.
Additionally, the aggregate balance of amounts payable to the associated parties during 2014 was
$11,852,438.
(14)
Subsequent Events
(a) Sale of General Obligation Bonds
In October 2014, the Borough issued a total of $127,395,000 of general obligation bonds Series
2014A (General Purpose) and Series 2014B (Schools) to finance various capital improvements and
school related projects. These bonds consisted of current interest term bonds maturing in the
installments as follows:
$102,525,000
General Obligation Bonds, Series 2014A
(General Purpose)
Maturity dates, June 30:
2015
2016
2017
Principal
amounts
$
60,390,000
28,600,000
13,535,000
Interest
rate
2.00 %
4.00
5.00
$24,870,000
General Obligation Bonds Series 2014B
(Schools)
Maturity dates, October 30:
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2,050,000
2,115,000
2,200,000
2,295,000
2,410,000
2,510,000
2,615,000
2,745,000
2,890,000
3,040,000
59
2.00
4.00
4.00
5.00
4.00
4.00
5.00
5.00
5.00
5.00
(Continued)
NORTH SLOPE BOROUGH, ALASKA
Notes to Financial Statements
June 30, 2014
(b) Series 2014C Sevice Area 10 Bonds
In December 2014, the Borough issued $20,550,000 aggregate principal amount of its Series 2014C
Service Area 10 Bonds to pay, or to reimburse the Borough for the payment of, costs of the
acquisition, construction, and equipping of capital improvement projects for the Service Area 10
solid waste utility. The Series 2014C Service Area 10 Bonds constitute general obligations of the
Borough, and the full faith and credit of the Borough is pledged to the payment of the Series 2014C
Service Area 10 Bonds. In the event that pledged revenues, consisting primarily of the rates and
charges established and collected pursuant to the Borough Code in connection with the Service Area
10 solid waste utility, or other available funds of the Borough are insufficient to pay when due the
principal of and interest on the Series 2014C Service Area 10 Bonds, the Borough will be obligated
to assess, levy and collect, without limitation as to rate or amount, ad valorem taxes on all property
in the Borough subject to taxation by the Borough sufficient to pay when due the principal of and
interest on the Series 2014C Service Area 10 Bonds. The maturity dates for the respective bonds
range from June 30, 2018 to June 30, 2024 with maturity values ranging from $320,000 to
$3,320,000. Interest rates ranges from 2% to 5%.
(c) Naval Arctic Research Laboratory (NARL) Renewed Master Lease Agreement
In January of 2014, the North Slope Borough Assembly authorized the Mayor through Ordinance
2013-7 to negotiate and execute a five year lease agreement with Ukpeagvik Inupiat Corporation
(UIC) for facilities located at NARL to be used as Ilisagvik College and for property located within
Barrow to be used as office space for the North Slope Borough.
In July 1, 2014, the Assembly approved the amount of the lease agreement through Resolution 372014 with UIC for the NARL and Assessment/GIS Division properties in a base amount not to
exceed $2,240,764 with the annual upward adjustment of 3.75% per fiscal year for the period of July
1, 2014 through June 30, 2019.
60
(Continued)
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
NORTH SLOPE BOROUGH, ALASKA
Budgetary Comparison Schedule – General Fund
Year ended June 30, 2014
Budget
original
Revenues:
Property taxes
Intergovernmental
Charges for services
Investment earnings
State gas production tax credit
Economic impact assistance
Other revenues
$
Total revenues
Expenditures:
Current:
General government
Public works
Public safety
Health and social services
Wildlife management
Primary and secondary education
Higher education
Debt service:
Principal retirement
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in from other governmental funds
Transfers out to other governmental funds
Transfer out to enterprise funds
Proceeds from insurance
Appropriation of fund balance
Total other financing sources (uses), net
Fund balance, end of year
$
Actual
333,412,737
14,675,529
9,302,827
11,500,000
5,000,000
-
357,106,403
40,241,087
6,709,000
11,500,000
5,000,000
22,850,566
347,393,307
17,701,975
7,786,376
5,319,488
21,937,825
5,000,000
6,434,353
(9,713,096)
(22,539,112)
1,077,376
(6,180,512)
21,937,825
(16,416,213)
373,891,093
443,407,056
411,573,324
(31,833,732)
56,850,121
65,904,129
24,927,271
23,869,652
4,130,719
32,875,626
10,789,452
86,643,654
75,601,664
27,933,579
28,689,504
20,154,114
33,375,626
12,946,624
67,767,135
64,913,842
27,015,813
25,116,116
8,143,991
35,536,684
10,847,585
(18,876,519)
(10,687,822)
(917,766)
(3,573,388)
(12,010,123)
2,161,058
(2,099,039)
128,339,809
29,345,688
147,624,021
33,755,142
147,565,920
33,741,858
(58,101)
(13,284)
377,032,467
466,723,928
420,648,944
(46,074,984)
(3,141,374)
(23,316,872)
(9,075,620)
14,241,252
17,315,961
(14,174,587)
-
23,951,958
(14,174,587)
19,226,205
60,267,600
(25,213,000)
(19,174,587)
1,107,591
-
36,315,642
(25,213,000)
(5,000,000)
1,107,591
(19,226,205)
3,141,374
29,003,576
16,987,604
(12,015,972)
-
5,686,704
7,911,984
2,225,280
155,900,590
155,900,590
155,900,590
-
155,900,590
161,587,294
163,812,574
2,225,280
Net change in fund balance
Fund balance, beginning of year
Budget
final
Variance with
final budget –
positive
(negative)
See accompanying independent auditors' report.
61
SUPPLEMENTARY INFORMATION
NORTH SLOPE BOROUGH, ALASKA
Nonmajor Governmental Funds
June 30, 2014
Special Revenue – See special revenue section of report.
Capital Projects – See capital projects section of report.
Permanent Fund
Museum Endowment Fund -Assets in this fund may be used at the discretion of the Hans Van Der Laan Brooks
Range Library. Income derived from the assets of the Museum Endowment Fund is to be transferred to the
Museum Special Revenue Fund.
62
NORTH SLOPE BOROUGH, ALASKA
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2014
Assets
Cash and investments with central treasury
Accounts receivable:
Intergovernmental receivable
Prepaids and deposits
Total
Permanent
Fund Museum
Endowment
Total
nonmajor
governmental
funds
Special
revenue funds
Capital
projects funds
11,112,876
244,422,342
15,795
255,551,013
-
6,556,715
35,929
-
6,556,715
35,929
$
11,112,876
251,014,986
15,795
262,143,657
$
1,215,243
11,686,675
257,781
-
-
11,686,675
257,781
1,215,243
1,215,243
11,944,456
-
13,159,699
-
-
15,795
15,795
-
239,070,530
-
239,070,530
84,578
5,724,080
366,032
3,698,362
24,581
-
-
84,578
5,724,080
366,032
3,698,362
24,581
9,897,633
239,070,530
15,795
248,983,958
11,112,876
251,014,986
15,795
262,143,657
$
Liabilities and Fund Balances
Liabilities:
Accounts payable
Unearned intergovernmental revenue
Due to other funds
Total liabilities
Fund balances:
Nonspendable:
Museum endowment
Restricted for:
Authorized projects
Committed to:
Museum operations
Loans
Grants
Energy program
Public safety
Total fund balances
Total liabilities and fund balances
$
See accompanying independent auditors' report.
63
NORTH SLOPE BOROUGH, ALASKA
Nonmajor Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
Year ended June 30, 2014
Revenues:
Intergovernmental
Investment earnings
Other
$
Total revenues
Expenditures:
Other operating expenses
Capital projects
Bond issuance costs
Total expenditures
Deficiency of revenues over
expenditures
Other financing sources (uses):
Transfers in from other governmental funds
Transfers out to other governmental funds
General obligation bonds issued
Premium on issuance of debt
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
$
Permanent
Fund Museum
Endowment
Total
nonmajor
governmental
funds
Special
revenue funds
Capital
projects funds
629
255,112
33,763,016
-
-
33,763,016
629
255,112
255,741
33,763,016
-
34,018,757
480,118
-
96,537,377
846,102
-
480,118
96,537,377
846,102
480,118
97,383,479
-
97,863,597
(224,377)
(63,620,463)
-
(63,844,840)
-
25,213,000
(41,682,000)
100,775,000
3,367,104
-
25,213,000
(41,682,000)
100,775,000
3,367,104
-
87,673,104
-
87,673,104
(224,377)
24,052,641
-
23,828,264
10,122,010
215,017,889
15,795
225,155,694
9,897,633
239,070,530
15,795
248,983,958
See accompanying independent auditors' report.
64
NORTH SLOPE BOROUGH, ALASKA
Special Revenue Funds
June 30, 2014
Special Revenue Funds are used to account for specific revenue sources, which are designated for specified
purposes.
Museum – This fund accounts for donations received from private organizations, which are restricted for the
purchase of artifacts and exhibit construction for the museum.
RELI Loan Program – This fund accounts for interest free loans made to homeowners for residential plumbing
improvements, bedroom additions, and furnace upgrades.
Autaaqtuq – This fund accounts for donations from private organizations, which are restricted for the purpose of
providing grants to programs, schools, and nonprofit organizations for the improvement of health, education,
training, and the workplace skills of Borough's residents.
Walakpa Lease – This fund accounts for lease income from certain lands in the Walakpa and Barrow gas fields,
which are committed to the purpose of subsidizing the delivery of energy to the Borough communities.
Forfeiture – This fund accounts for amounts received through court order relating to the seizure of assets, which
were either utilized in, or represented profits from, illicit or illegal activities. The amounts are then utilized for
activities that are related to the investigation of crimes involving controlled substances.
65
NORTH SLOPE BOROUGH, ALASKA
Special Revenue Funds
Combining Balance Sheet
June 30, 2014
Museum
Assets
Cash and investments with central
treasury
$
Total assets
RELI Loan
Program
Autaaqtuq
Fund
Walakpa
Lease
Forfeiture
Fund
Total
84,578
6,939,323
366,032
3,698,362
24,581
11,112,876
$
84,578
6,939,323
366,032
3,698,362
24,581
11,112,876
$
-
1,215,243
-
-
-
1,215,243
-
1,215,243
-
-
-
1,215,243
84,578
-
5,724,080
-
366,032
-
3,698,362
-
24,581
84,578
5,724,080
366,032
3,698,362
24,581
84,578
5,724,080
366,032
3,698,362
24,581
9,897,633
84,578
6,939,323
366,032
3,698,362
24,581
11,112,876
Liabilities and Fund Balances
Liabilities:
Due to other funds
Total liabilities
Fund balances:
Committed to:
Museum operations
Loans
Grants
Energy program
Public safety
Total fund balances
Total liabilities and fund
balances
$
See accompanying independent auditors' report.
66
NORTH SLOPE BOROUGH, ALASKA
Special Revenue Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Year ended June 30, 2014
RELI Loan
Program
Autaaqtuq
Fund
7,838
36,927
191,147
629
-
19,200
629
255,112
7,838
36,927
191,147
629
19,200
255,741
-
405,170
-
-
74,948
480,118
-
405,170
-
-
74,948
480,118
Excess (deficiency) of
revenues over
expenditures
7,838
(368,243)
191,147
629
(55,748)
(224,377)
Fund balances, beginning of year
76,740
6,092,323
174,885
3,697,733
80,329
10,122,010
84,578
5,724,080
366,032
3,698,362
24,581
9,897,633
Museum
Revenues:
Investment earnings
Other
$
Total revenues
Expenditures:
Other operating expenses
Total expenditures
Fund balances, end of year
$
See accompanying independent auditors' report.
67
Walakpa
Lease
Forfeiture
Fund
Total
NORTH SLOPE BOROUGH, ALASKA
Capital Projects Funds
June 30, 2014
The Capital Projects Funds account for the receipt and disbursement of moneys used for the acquisition or
construction of capital facilities other than those acquired or constructed by the Enterprise Funds. These Capital
Projects Funds are as follows:
Education and Service Center Facilities Fund
Public Roads, Streets, Watercourse, and Flood Control Facilities Fund
Public Housing Fund
Water Facilities Fund
Sewage Treatment Disposal Facilities Fund
Airport and Airport Terminal Facilities Fund
Urban Development Projects Fund
Light, Power, and Heating Systems Fund
Public Safety Facilities Fund
Sanitary Facilities Fund
Industrial Parks Fund
Communications Fund
General Capital Projects Fund
Health Facilities Fund
Library/Cultural Facilities Fund
Administration Facilities Fund
68
NORTH SLOPE BOROUGH, ALASKA
Capital Projects Funds
Combining Balance Sheet
June 30, 2014
Education
and Service
Center
Facilities
Fund
Assets
Cash and investments with central treasury
Accounts receivable:
Intergovernmental
Prepaids and deposits
Total
$
Public Roads,
Streets,
Watercourse,
and Flood
Control
Facilities
Fund
Public
Housing
Fund
22,205,378
40,004,387
3,509,086
35,929
1,054,143
-
-
$
22,241,307
41,058,530
3,509,086
$
845,525
-
678,559
219,069
-
845,525
897,628
-
21,395,782
40,160,902
3,509,086
21,395,782
40,160,902
3,509,086
22,241,307
41,058,530
3,509,086
Liabilities and Fund Balances
Liabilities:
Accounts payable
Intergovernmental
Total liabilities
Fund balances:
Restricted for authorized projects
Total fund balances
Total liabilities and fund balances
$
See accompanying independent auditors' report.
69
Water
Facilities
Fund
Sewage
Treatment
Disposal
Facilities
Fund
Airport and
Airport
Terminal
Facilities
Fund
Urban
Development
Projects
Fund
Light, Power,
and Heating
Systems
Fund
Public Safety
Facilities Fund
27,858,655
10,372,850
14,670,668
53,769
30,220,150
18,836,560
600,000
-
-
4,729,560
-
-
47,613
-
-
28,458,655
10,372,850
19,400,228
53,769
30,267,763
18,836,560
4,206,129
-
1,181,041
-
239,427
1,227
-
1,526,992
37,485
301,403
-
4,206,129
1,181,041
240,654
-
1,564,477
301,403
24,252,526
9,191,809
19,159,574
53,769
28,703,286
18,535,157
24,252,526
9,191,809
19,159,574
53,769
28,703,286
18,535,157
28,458,655
10,372,850
19,400,228
53,769
30,267,763
18,836,560
(Continued)
70
NORTH SLOPE BOROUGH, ALASKA
Capital Projects Funds
Combining Balance Sheet
June 30, 2014
Sanitary
Facilities Fund
Assets
Cash and investments with central treasury
Accounts receivable:
Intergovernmental
Prepaids and deposits
Industrial
Parks Fund
Communications
Fund
11,384,602
74,211
12,045,037
-
-
-
11,384,602
74,211
12,045,037
741,430
-
-
184,810
-
741,430
-
184,810
10,643,172
74,211
11,860,227
Total fund balances
10,643,172
74,211
11,860,227
Total liabilities and fund balances
11,384,602
74,211
12,045,037
Total
Liabilities and Fund Balances
Liabilities:
Accounts payable
Intergovernmental
Total liabilities
Fund balances:
Restricted for authorized projects
See accompanying independent auditors' report.
71
General Capital
Projects
Health
Facilities Fund
Library/Cultural
Facilities Fund
Administration
Facilities
46,400,764
1,907,469
2,129,309
2,749,447
244,422,342
107,505
-
-
17,894
-
-
6,556,715
35,929
46,508,269
1,907,469
2,147,203
2,749,447
251,014,986
1,563,673
-
6,087
-
43,785
-
167,814
-
11,686,675
257,781
1,563,673
6,087
43,785
167,814
11,944,456
44,944,596
1,901,382
2,103,418
2,581,633
239,070,530
44,944,596
1,901,382
2,103,418
2,581,633
239,070,530
46,508,269
1,907,469
2,147,203
2,749,447
251,014,986
72
Total
NORTH SLOPE BOROUGH, ALASKA
Capital Projects Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Year ended June 30, 2014
Public Roads,
Streets,
Watercourse,
and Flood
Control
Facilities
Fund
Education
and Service
Center
Facilities
Fund
Revenues:
Intergovernmental
$
-
10,758,003
-
-
10,758,003
-
12,004,259
109,269
12,216,165
127,371
449
-
12,113,528
12,343,536
449
(12,113,528)
(1,585,533)
(449)
5,635,000
310,000
2,000,000
13,014,430
434,839
(1,000,000)
15,170,493
506,878
-
19,084,269
14,987,371
2,000,000
Total revenues
Expenditures:
Capital projects
Bond issuance costs
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in:
General fund
Transfers out:
General fund
General obligation bonds issued
Premium on issuance of debt
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
$
Public
Housing
Fund
6,970,741
13,401,838
1,999,551
14,425,041
26,759,064
1,509,535
21,395,782
40,160,902
3,509,086
See accompanying independent auditors' report.
73
Water
Facilities
Fund
Sewage
Treatment
Disposal
Facilities
Fund
Airport and
Airport
Terminal
Facilities
Fund
Urban
Development
Projects
Fund
Light, Power,
and Heating
Systems
Fund
Public Safety
Facilities Fund
6,594,622
-
15,179,942
-
424,192
93,794
6,594,622
-
15,179,942
-
424,192
93,794
19,444,350
22,910
2,639,174
53,160
13,908,458
68,395
-
10,765,791
108,056
3,861,125
99,210
19,467,260
2,692,334
13,976,853
-
10,873,847
3,960,335
(12,872,638)
(2,692,334)
1,203,089
-
(10,449,655)
(3,866,541)
3,187,000
-
-
-
-
-
2,728,737
91,173
(308,000)
6,331,608
211,552
8,146,213
272,182
-
(2,087,000)
12,870,041
430,015
(11,111,000)
11,816,400
394,810
6,006,910
6,235,160
8,418,395
-
11,213,056
1,100,210
(6,865,728)
3,542,826
9,621,484
-
763,401
(2,766,331)
31,118,254
5,648,983
9,538,090
53,769
27,939,885
21,301,488
24,252,526
9,191,809
19,159,574
53,769
28,703,286
18,535,157
(Continued)
74
NORTH SLOPE BOROUGH, ALASKA
Capital Projects Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Year ended June 30, 2014
Sanitary
Facilities Fund
Revenues:
Intergovernmental
-
73,450
-
-
73,450
2,189,245
30,733
-
2,195,863
311
2,219,978
-
2,196,174
(2,219,978)
-
(2,122,724)
350,000
-
-
(1,000,000)
3,660,430
122,303
-
37,072
1,239
3,132,733
-
38,311
Expenditures:
Capital projects
Bond issuance costs
Total expenditures
Other financing sources (uses):
Transfers in:
General fund
Transfers out:
General fund
General obligation bonds issued
Premium on issuance of debt
Total other financing sources (uses)
Net change in fund balances
912,755
-
(2,084,413)
9,730,417
74,211
13,944,640
10,643,172
74,211
11,860,227
Fund balances, beginning of year
Fund balances, end of year
Communications
Fund
-
Total revenues
Excess (deficiency) of revenues over expenditures
Industrial
Parks Fund
See accompanying independent auditors' report.
75
General Capital
Projects
Health
Facilities Fund
Library/Cultural
Facilities Fund
Administration
Facilities
89,766
481,825
67,422
-
33,763,016
89,766
481,825
67,422
-
33,763,016
14,789,898
217,554
1,557,123
2,564
247,344
-
718,133
6,569
96,537,377
846,102
15,007,452
1,559,687
247,344
724,702
97,383,479
(14,917,686)
(1,077,862)
(179,922)
(724,702)
(63,620,463)
13,731,000
-
-
-
25,213,000
(25,284,000)
25,911,787
865,767
(110,000)
305,361
10,203
-
(782,000)
782,428
26,143
(41,682,000)
100,775,000
3,367,104
15,224,554
205,564
-
26,571
87,673,104
Total
306,868
(872,298)
(179,922)
(698,131)
24,052,641
44,637,728
2,773,680
2,283,340
3,279,764
215,017,889
44,944,596
1,901,382
2,103,418
2,581,633
239,070,530
76
NORTH SLOPE BOROUGH, ALASKA
Nonmajor Enterprise Funds
June 30, 2014
The Enterprise Funds, which account for all activities necessary for the operation of each entity, are financed and
operated in a manner similar to private business enterprise. These Nonmajor Enterprise Funds are:
Home Assistance Loan Fund
Loan fund for down payments on residential property
77
NORTH SLOPE BOROUGH, ALASKA
Nonmajor Enterprise Funds
Combining Statement of Net Position
June 30, 2014
Home
Assistance
Loan
Assets
Current assets:
Cash and investments with central treasury
Total assets
$
Net position:
Unrestricted
Total net position
Total liabilities and net position
$
See accompanying independent auditors' report.
78
Total
6,114,567
6,114,567
6,114,567
6,114,567
6,114,567
6,114,567
6,114,567
6,114,567
6,114,567
6,114,567
NORTH SLOPE BOROUGH, ALASKA
Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position
Year ended June 30, 2014
Home
Assistance
Loan
Operating revenues:
Home Assistance Loan - revolving
loan fund interest
Total operating revenues
$
Operating expenses:
Other operating expenses
Total operating expenses
Operating income
Transfers in from governmental activities
Change in net position
Net position, beginning of year
Net position, end of year
$
See accompanying independent auditors' report.
79
Total
583
583
583
583
(4,312)
(4,312)
4,895
5,000,000
5,004,895
1,109,672
6,114,567
(4,312)
(4,312)
4,895
5,000,000
5,004,895
1,109,672
6,114,567
NORTH SLOPE BOROUGH, ALASKA
Nonmajor Enterprise Funds
Combining Statement of Cash Flows
Year End June 30, 2014
Home
Assistance
Loan
Cash flows from operating activities:
Cash received from customers
Net cash provided by
operating activities
Cash flows from noncapital financing activities:
Operating transfer in
Net cash used for capital and related
financing activities
Net increase in cash and cash equivalents
Beginning cash and cash equivalents
Ending cash and cash equivalents
$
Reconciliation of operating income to net cash
provided by operating activities:
Operating income
Net cash provided by
operating activities
See accompanying notes to financial statements.
80
Total
4,895
4,895
4,895
4,895
5,000,000
5,000,000
$
5,000,000
5,004,895
1,109,672
6,114,567
5,000,000
5,004,895
1,109,672
6,114,567
$
4,895
4,895
$
4,895
4,895
STATISTICAL SECTION (UNAUDITED)
Exhibit A-1
NORTH SLOPE BOROUGH, ALASKA
Statistical Section
This part of the North Slope Borough’s comprehensive annual financial
report presents detailed information as a context for understanding what the
information in the financial statements, note disclosures, and required
supplementary information says about the Borough’s overall financial health.
Contents
Pages
Financial Trends:
These schedules contain trend information to help the reader understand
how the Borough’s financial performance and well-being have changed over time.
82 – 85
Revenue Capacity:
These schedules contain information to help the reader assess the Borough’s
most significant local revenue source, the property tax.
86 – 91
Debt Capacity:
These schedules present information to help the reader assess the affordability of
the Borough’ s current levels of outstanding debt and the Borough’s ability to
issue additional debt in the future.
92 – 96
Demographic and Economic Information:
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the Borough’s financial activities take place.
97 – 98
Operating Information:
These schedules contain service and infrastructure data to help the reader
understand how the information in the Borough’s financial report relates to
the services the Borough provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from
the comprehensive annual financial reports (CAFR) for the relevant year.
81
99 – 101
FINANCIAL TRENDS
82
Exhibit B-1
NORTH SLOPE BOROUGH, ALASKA
Net Position by Component
Last Nine Fiscal Years
(accrual basis of accounting)
2006
Governmental activities:
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net
position
Business-type activities:
Net investment in capital assets
Unrestricted
Total business-type activities net
position
Borough-wide:
Net investment in capital assets
Restricted
Unrestricted
Total Borough-wide net position
2007
2008
2009
2010
2011
2012
2013
2014
$
659,580,307
483,087,216
267,828,924
951,967,630
543,913,229
20,184,207
1,042,943,709
462,158,849
(14,582,068)
1,066,332,197
364,583,487
(3,364,797)
1,096,242,857
394,041,935
26,557,935
1,183,978,755
463,186,129
32,421,090
1,232,329,156
441,675,669
101,662,489
1,277,311,066
489,268,426
128,628,500
1,376,535,475
554,345,283
138,797,702
$
1,410,496,447
1,516,065,066
1,490,520,490
1,427,550,887
1,516,842,727
1,679,585,974
1,775,667,314
1,895,207,992
2,069,678,460
$
61,654,370
2,099,435
58,379,524
4,541,761
58,614,045
2,321,914
72,904,018
85,578
68,936,131
375,128
65,233,553
(339,880)
308,034,242
1,488,631
309,389,581
2,025,539
326,069,603
7,462,295
$
63,753,805
62,921,285
60,935,959
72,989,596
69,311,259
64,893,673
309,522,873
311,415,120
333,531,898
$
721,234,677
483,087,216
269,928,359
1,474,250,252
1,010,347,154
543,913,229
24,725,968
1,578,986,351
1,101,557,754
462,158,849
(12,260,154)
1,551,456,449
1,139,236,215
364,583,487
(3,279,219)
1,500,540,483
1,165,178,988
394,041,935
26,933,063
1,586,153,986
1,249,212,308
463,186,129
32,081,210
1,744,479,647
1,540,363,398
441,675,669
103,151,120
2,085,190,187
1,586,700,647
489,268,426
130,654,039
2,206,623,112
1,702,605,078
554,345,283
146,259,997
2,403,210,358
$
Note: For FY 2005, either the information is not available for this year or the records are not readily attainable.
82
Exhibit B-2
NORTH SLOPE BOROUGH, ALASKA
Changes in Net Position
Last Nine Fiscal Years
(accrual basis of accounting)
2006
Expenses:
Primary government:
Governmental activities:
General government
Public works
Public safety
Health and social services
Wildlife management
Primary and secondary education
Higher education
Interest on long-term debt
Total governmental activities expenses
Business-type activities:
Power and Light
Service Area 10
Home Assistance Loan
Real Property Management
Total business-type activities expenses
Total primary government expenses
Program revenues:
Governmental activities:
Charges for services:
General government
Public works
Health and social services
Operating grants and contributions
Capital grants and contributions
Total governmental activities program
revenues
Business-type activities:
Charges for services:
Power and Light
Service Area 10
Home Assistance Loan
Real Property Management
Operating grants and contributions
Total business-type activities program
revenues
Total primary government program
revenues
Net expense:
Governmental activities
Business-type activities
Total primary government net expense
General revenues and other changes in net position:
Property taxes
Property tax judgment
Grants and entitlements not restricted to
specific programs
Loss (gain) on sale of capital asset
Payment in lieu of taxes
Proceeds from settlement
Investment earnings
State gas production tax credit
Other
Special item – donation of capital assets to
TNHA
Extraordinary item:
NPO and OPEB elimination
Transfers
Total governmental activities
Business-type activities:
Investment earnings
Capital contributions
Transfers
Total business-type activities
Total primary government
Change in net position:
Governmental activities
Business-type activities
Total primary government
$
2007
2008
2009
2010
2011
2012
2013
2014
37,021,906
68,566,382
17,494,957
3,926,456
12,778,518
30,541,574
6,498,668
32,668,222
209,496,683
41,740,931
86,591,126
20,049,567
13,673,657
3,902,951
32,143,232
6,047,517
29,189,484
233,338,465
38,243,959
22,292,972
85,487,557
3,679,550
16,669,761
31,695,358
6,485,427
26,850,112
231,404,696
50,489,409
25,365,984
96,435,093
4,878,490
18,947,397
35,892,319
7,402,035
25,135,677
264,546,404
51,228,661
106,336,977
24,251,433
21,779,406
4,844,964
35,673,749
8,499,972
25,536,682
278,151,844
68,612,945
103,456,114
27,593,158
25,972,316
5,997,605
46,470,371
9,078,253
22,803,331
309,984,093
73,647,851
106,341,341
29,781,325
26,747,391
6,172,284
42,250,162
8,929,228
21,138,351
315,007,933
67,472,759
127,446,812
31,177,215
27,165,148
7,999,441
42,947,630
10,844,513
17,854,348
332,907,866
74,677,981
109,398,514
32,192,460
27,045,823
8,315,278
43,640,694
9,745,810
14,987,448
320,004,008
15,260,393
6,039,261
87,766
21,387,420
230,884,103
16,396,398
9,046,057
606
38,968
25,482,029
258,820,494
20,170,704
12,372,320
183,652
32,726,676
264,131,372
22,571,679
15,895,602
335,450
38,802,731
303,349,135
20,228,358
20,021,898
270,766
40,521,022
318,672,866
21,537,042
21,748,609
266,663
43,552,314
353,536,407
25,914,894
25,266,587
(3,869)
370,344
51,547,956
366,555,889
27,220,964
21,638,889
(2,146)
358,983
49,216,690
382,124,556
27,650,153
24,789,202
(4,312)
733,538
53,168,581
373,172,589
1,900,232
3,005,661
24,239
16,080,428
3,896,975
2,544,119
2,939,016
23,566
23,362,228
12,159,655
3,029,207
3,807,977
20,664
18,388,587
12,365,544
4,855,701
1,330,532
235,466
23,050,579
7,272,903
2,999,599
2,984,384
125,773
18,090,745
9,581,837
2,967,296
3,510,601
159,345
21,429,605
4,531,222
3,164,892
2,870,640
162,542
20,417,040
5,805,944
4,371,029
3,069,042
234,113
41,809,725
23,713,020
4,110,349
3,418,131
257,896
38,423,394
33,763,016
24,907,535
41,028,584
37,611,979
36,745,181
33,782,338
32,598,069
32,421,058
73,196,929
79,972,786
6,891,584
5,748,681
173
85,063
-
6,976,345
11,385,462
7
204,059
-
6,309,564
12,370,634
6,961
267,721
-
8,707,133
15,239,840
14,344
1,045,064
-
6,660,172
18,366,406
12,538
1,491,844
-
6,303,426
21,019,673
5,754
1,045,295
-
7,946,206
27,192,858
1,381
1,276,598
421,362
8,702,015
24,030,572
656
1,311,548
603,499
8,685,325
28,185,361
583
2,234,029
696,460
12,725,501
18,565,873
18,954,880
25,006,381
26,530,960
28,374,148
36,838,405
34,648,290
39,801,758
$
37,633,036
59,594,457
56,566,859
61,751,562
60,313,298
60,972,217
69,259,463
107,845,219
119,774,544
$
(184,589,148)
(8,661,919)
(193,251,067)
(192,309,881)
(6,916,156)
(199,226,037)
(193,792,717)
(13,771,796)
(207,564,513)
(227,801,223)
(13,796,350)
(241,597,573)
(244,369,506)
(13,990,062)
(258,359,568)
(277,386,024)
(15,178,166)
(292,564,190)
(282,586,875)
(14,709,551)
(297,296,426)
(259,710,937)
(14,568,400)
(274,279,337)
(240,031,222)
(13,366,823)
(253,398,045)
198,391,387
-
203,217,204
-
212,964,677
-
243,563,335
-
275,655,056
-
304,184,865
34,767,484
317,906,077
51,184,896
328,846,618
-
347,546,497
1,810,438
(1,611,927)
4,400,000
62,301
51,741,463
1,953,303
2,195,814
5,000,000
3,083
103,357,349
2,137,184
634,466
(44,462,973)
10,605,023
1,341,431
5,000,000
(65,322,433)
1,550,685
1,022,230
4,950,000
60,661,645
1,682,329
1,025,675
5,000,000
92,517,446
13,363,886
1,162,044
5,000,000
4,934,970
4,884,379
6,982,889
1,135,374
5,000,000
55,825,691
4,903,795
1,216,406
-
(12,267,152)
-
-
-
-
-
-
(3,170,393)
253,576,572
(5,764,982)
297,878,500
(11,493,052)
168,248,141
4,474,072
(25,775,470)
164,831,620
(10,309,914)
333,661,346
(10,730,085)
440,129,271
(13,387,040)
378,668,215
(16,459,863)
379,251,615
(35,482,336)
414,501,690
250,982
12,189,139
14,571,454
27,011,575
280,588,147
318,654
184,673
5,764,982
6,268,309
304,146,809
293,418
4,458,170
11,493,052
16,244,640
184,492,781
74,517
25,775,470
25,849,987
190,681,607
1,811
10,309,914
10,311,725
343,973,071
30,495
10,730,085
10,760,580
450,889,851
642
245,951,069
13,387,040
259,338,751
638,006,966
784
16,459,863
16,460,647
395,712,262
1,265
35,482,336
35,483,601
449,985,291
68,987,424
6,160,517
75,147,941
105,568,619
(832,520)
104,736,099
(27,529,902)
(1,985,326)
(29,515,228)
(62,969,603)
12,053,637
(50,915,966)
89,291,840
(3,678,337)
85,613,503
162,743,247
(4,417,586)
158,325,661
96,081,340
244,629,200
340,710,540
119,540,678
1,892,247
121,432,925
174,470,468
22,116,778
196,587,246
$
$
$
$
$
$
$
Note: For FY2005, the information either is not available for this year or the records are not readily attainable.
83
5,000,000
88,424,067
7,797,056
Exhibit B-3
NORTH SLOPE BOROUGH, ALASKA
Fund Balances, Governmental Funds
Last Nine Fiscal Years
(modified accrual basis of accounting)
2006
General fund (after GASB 54):
Nonspendable
Committed
Assigned
Unassigned
General fund (prior to GASB 54):
Reserved
Unreserved
Total general fund
All other governmental funds (after GASB
54):
Nonspendable
Restricted
Committed
Unassigned
All other governmental funds (prior to GASB
54):
Reserved
Unreserved, reported in:
Special revenue funds
Capital projects funds
Total all other governmental funds
$
$
$
$
2007
2008
2009
2010
2011
2012
2013
2014
-
-
-
-
-
15,040,466
9,200,000
13,252,744
95,368,129
6,648,312
9,200,000
11,777,445
133,939,140
16,691,942
9,200,000
18,426,205
111,582,443
10,309,507
8,600,000
14,155,484
130,747,583
5,095,320
53,440,286
58,535,606
3,474,308
79,660,287
83,134,595
11,139,194
67,612,616
78,751,810
16,967,243
72,709,665
89,676,908
11,888,461
85,614,848
97,503,309
132,861,339
161,564,897
155,900,590
163,812,574
-
-
-
-
-
15,795
694,594,576
12,155,907
(177,271)
15,795
632,938,417
11,687,070
(88,749)
339,078,320
453,718,041
10,122,010
-
339,636,827
453,718,041
9,897,633
-
518,725,658
570,087,823
501,651,981
403,210,985
438,108,093
-
-
-
-
6,554,303
85,837,503
611,117,464
7,937,689
87,521,014
665,546,526
11,429,733
104,663,878
617,745,592
11,735,636
95,116,486
510,063,107
12,025,520
128,845,426
578,979,039
706,589,007
644,552,533
802,918,371
803,252,501
Prior to June 30, 2011, the Fund Balance categories were presented as "Invested in capital net of related debt", "Unrestricted" and "Restricted". The
fund balance descriptions have been revised for those years in order to comply with GASB 54.
Note: For FY 2005, either the information is not available for this year or the records are not readily attainable.
84
Exhibit B-4
NORTH SLOPE BOROUGH, ALASKA
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2005
Revenues:
Property taxes
Intergovernmental
Charges for services
Investment earnings (loss)
Net increase (decrease) in the fair value of investments
State gas production tax credit
Economic impact assistance
Property tax judgment
Other
Total revenues
Expenditures:
Current:
General government
Public works
Public safety
Health and social services
Wildlife management
Primary and secondary education
Higher education
Debt service:
Principal retirement
Interest
Issuance costs
Capital projects
Special revenue costs
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in from other governmental funds
Transfers in from component units
Transfers out to other governmental funds
Transfers in from enterprise funds
Transfer out to enterprise funds
Issuance of debt, net
Payment to refunded bond escrow agent
Premium on issuance of debt
Proceeds from insurance
Proceeds from settlement
Proceeds from sale of assets
Total other financing sources
Net change in fund balances
Debt service as a percentage of noncapital expenditures
$
$
2006
2007
2008
2009
2010
2011
2012
2013
2014
197,493,466
23,235,320
4,862,150
33,966,253
13,581,457
4,400,000
719,037
278,257,683
198,473,498
21,787,842
4,930,131
40,915,700
14,988,908
4,400,000
2,283,840
287,779,919
202,990,894
37,717,697
5,506,701
51,536,782
51,820,567
5,000,000
2,330,831
356,903,472
212,827,417
31,388,596
6,857,848
43,426,868
(87,889,841)
5,000,000
5,666,874
217,277,762
243,119,271
31,664,913
6,421,699
(65,322,433)
5,000,000
1,300,811
222,184,261
275,654,810
28,694,812
6,109,756
60,661,645
4,950,000
2,175,573
378,246,596
305,416,388
26,986,503
6,637,242
92,517,446
5,000,000
34,767,484
4,584,952
475,910,015
314,358,424
27,385,028
6,198,074
4,934,970
4,884,379
5,000,000
51,184,896
3,692,317
417,638,088
331,616,907
52,130,996
7,674,184
55,825,691
12,785,605
5,000,000
4,903,795
469,937,178
347,393,307
51,464,991
7,786,376
88,424,067
21,937,825
5,000,000
6,689,465
528,696,031
36,366,809
35,410,424
13,908,343
13,659,766
3,588,362
23,555,878
6,816,608
34,425,841
36,394,099
14,788,859
11,326,276
3,874,554
22,991,968
6,516,608
37,380,504
41,457,450
17,073,751
12,207,050
3,845,456
24,051,680
6,516,608
39,345,956
45,267,537
19,020,938
15,108,588
3,623,478
23,914,436
6,844,801
47,374,049
54,636,082
22,285,235
17,385,623
4,829,192
28,084,027
8,004,518
49,766,313
59,206,566
21,018,482
20,235,043
4,795,757
27,865,457
9,102,454
54,974,456
61,089,388
24,015,694
24,202,856
5,945,335
37,591,411
9,680,737
66,557,116
66,144,353
26,316,340
25,152,471
6,093,153
34,585,697
10,031,001
59,583,559
69,369,354
26,487,760
25,525,767
7,824,154
35,155,086
11,946,284
67,767,135
64,913,842
27,015,813
25,116,116
8,143,991
35,536,684
10,847,585
60,852,889
54,359,431
55,661,408
304,179,918
63,682,384
48,842,425
54,033,520
296,876,534
68,843,158
43,695,809
58,319,789
313,391,255
65,843,946
42,069,250
56,565,862
317,604,792
83,938,980
24,258,849
519,134
61,656,270
18,080
352,990,039
83,005,986
44,199,406
793,837
57,715,292
251,824
377,956,417
95,012,800
43,360,783
955,142
68,916,346
231,732
425,976,680
105,869,836
40,347,523
653,472
147,775,951
723,973
530,250,886
115,993,897
35,395,733
761,159
101,349,065
1,840,361
491,232,179
147,565,920
33,741,858
846,102
96,537,377
480,118
518,512,541
(25,922,235)
(9,096,615)
43,512,217
(100,327,030)
(130,805,778)
290,179
49,933,335
(112,612,798)
(21,295,001)
10,183,490
32,961,984
(32,961,984)
(1,105,769)
75,811,000
2,732,877
15,935,763
6,696,175
100,070,046
74,147,811
33,712,841
(33,712,841)
(2,382,315)
30,609,566
(3,078,410)
2,465,400
62,301
6,669
27,683,211
18,586,596
42,751,739
(42,751,739)
(5,580,309)
41,063,000
3,083
30,060
35,515,834
79,028,051
53,158,348
(53,158,348)
(7,034,882)
55,171,773
5,224
1,195
48,143,310
(52,183,720)
57,227,026
(57,227,026)
(10,961,728)
86,500,000
(42,407,067)
914,201
1,161
1,824
34,048,391
(96,757,387)
27,065,986
768,911
(27,065,986)
(10,440,302)
83,825,000
2,288,837
9,708
76,452,154
76,742,333
30,147,419
(30,147,419)
261,324
(10,116,412)
116,130,000
5,701,142
1,058,609
113,034,663
162,967,998
43,618,020
(43,618,020)
319,150
(12,671,945)
74,790,000
5,359,488
11,483,189
79,279,882
(33,332,916)
82,447,214
(82,447,214)
327,887
(12,895,022)
92,155,000
85,480,600
(85,480,600)
558,507
(19,174,587)
100,775,000
4,096,158
1,741,518
85,425,541
64,130,540
3,367,104
1,107,591
86,633,615
96,817,105
50.36%
44.78%
45.00%
42.51%
39.52%
35.07%
35.78%
36.31%
36.01%
43.17%
Source: North Slope Borough records
Note: Noncapital expenditures are total expenditures less capital outlay.
Public works account classification was added beginning with year-end June 30, 2005.
Prior to June 30, 2005, public works was reported as municipal services and housing.
Prior to June 30, 2003, expenditures for primary and secondary education and higher education were reflected as operating transfers out.
Prior to June 30, 2008, the net increase (decrease) in the fair value of investments was reported separately from investment earnings (loss).
85
REVENUE CAPACITY
Exhibit C-1
NORTH SLOPE BOROUGH, ALASKA
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal year
ended June 30
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Land
137,051,168
137,051,168
136,452,968
136,607,268
139,201,068
164,396,068
234,677,968
221,113,327
240,996,227
199,679,127
Improvements
671,373,210
660,833,310
651,318,610
645,752,510
656,081,910
713,567,010
733,728,310
757,978,300
769,554,300
829,139,800
Appraised
value of
land and
improvements
808,424,378
797,884,478
787,771,578
782,359,778
795,282,978
877,963,078
968,406,278
979,091,627
1,010,550,527
1,028,818,927
Less
exemptions
680,172,427
673,182,227
667,354,527
657,763,927
651,811,566
680,281,993
740,271,946
755,233,946
771,831,827
739,078,737
Total taxable
assessed value
of land and
improvements
128,251,951
124,702,251
120,417,051
124,595,851
143,471,412
197,681,085
228,134,332
223,857,681
238,718,700
289,740,190
Plus
personal
property
64,774,030
72,700,840
84,900,820
94,297,590
135,599,550
136,576,820
144,487,334
122,525,611
209,100,862
249,330,697
Source: Municipal Tax Assessor
Note: Property in the Borough is reassessed each year. Property is assessed at actual value; therefore, the assessed values are equal to actual value.
Tax rates are per $1,000 of assessed value.
86
Plus oil and
gas property
10,132,394,975
10,452,842,364
11,415,662,280
12,712,957,462
14,637,973,715
16,113,479,700
16,591,768,338
17,426,327,320
18,790,305,190
18,613,741,430
Total assessed
property value
10,325,420,956
10,650,245,455
11,620,980,151
12,931,850,903
14,917,044,677
16,447,737,605
16,964,390,004
17,772,710,612
19,238,124,752
19,152,812,317
Total direct
tax rate
1.903
1.905
1.850
1.850
1.850
1.850
1.850
1.850
1.850
1.850
Exhibit C-2
NORTH SLOPE BOROUGH, ALASKA
Property Tax Rates
Last Ten Fiscal Years
(rate per $100 of assessed value)
(1)
Fiscal year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$
North Slope Borough General Fund
Operating
Debt service
Total
0.751
1.099
1.850
0.809
1.094
1.903
0.865
1.040
1.905
0.936
0.914
1.850
1.021
0.829
1.850
1.001
0.849
1.850
1.009
0.841
1.850
1.031
0.819
1.850
0.975
0.875
1.850
0.974
0.876
1.850
(1) Represents fiscal year in which taxes were assessed (January 1, due June 30).
Note: There are no overlapping governmental units.
87
Exhibit C-3
NORTH SLOPE BOROUGH, ALASKA
Principal Taxpayers
Current Year and Nine Years Ago
(modified accrual basis of accounting)
2014
Assessed
value
State assessed/received in fiscal year 2014:
BP Exploration Alaska, Inc.
ConocoPhillips Alaska, Inc.
Alyeska Pipeline Service Co.
ENI US Operating
Pioneer Natural Resources Alaska
Exxon Mobil Corp
Parker Drilling Arctic Operation
Halliburton Energy Services
CH2M Hill Equipment Inc
Nabros Alaska Drilling
VECO Equipment
Total of state assessed
Locally assessed/received in fiscal year 2014:
Ukpeagvik Inupiat Corporation
ICE Services Inc
Alaska Frontier Constructors Inc
ERA Helicopters LLC
Eskimos Inc
Deadhorse Aviation Center LLC
Arctic Slope Regional Corporation
Brooks Camp LLC
NC Machinery Co
Colville Inc
Alaska Interstate Construction, LLC
Alascom, Inc
Total of locally assessed
$
$
Tax levy
2005
Percentage of
total tax levy
7,643,206,540
5,234,474,030
2,780,295,410
1,059,946,331
409,049,931
210,300,530
124,895,930
103,017,580
94,607,060
91,891,330
17,751,684,672
141,399,321
96,837,770
51,435,465
19,609,007
7,567,424
3,890,560
2,310,575
1,905,825
1,750,231
1,699,990
328,406,168
39.91 %
27.33
14.52
5.53
2.14
1.10
0.65
0.54
0.49
0.48
92.69
63,232,431
51,257,490
34,612,440
27,617,720
22,078,350
21,865,410
21,692,081
17,490,900
15,175,590
15,150,980
290,173,392
18,041,858,064
1,169,800
948,264
640,330
510,928
408,449
404,510
401,303
323,582
280,748
280,293
5,368,207
333,774,375
0.33
0.27
0.18
0.14
0.12
0.11
0.11
0.09
0.08
0.08
1.51
94.20 %
88
Assessed
value
$
$
Tax levy
Percentage of
total tax levy
6,244,958,060
2,600,607,950
712,999,260
59,545,730
49,719,930
9,667,830,930
118,841,552
49,489,569
13,568,376
1,133,155
946,170
183,978,822
60.48 %
25.19
6.91
0.58
0.48
93.64
19,436,880
6,257,480
8,468,700
12,160,710
8,653,330
54,977,100
9,722,808,030
369,884
119,080
161,159
231,418
164,673
1,046,214
185,025,036
0.19
0.06
0.08
0.12
0.08
0.53
94.17 %
Exhibit C-4
NORTH SLOPE BOROUGH
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$
Taxes levied
for the
fiscal year
196,489,017
202,887,176
214,988,133
239,239,242
275,965,327
304,283,146
313,841,215
328,795,146
355,825,560
354,327,028
Collected within, or prior to,
the fiscal year of the levy
Collections in
Percentage
subsequent
Amount
of levy
years
195,006,286
99.25 $
1,482,731
201,418,790
99.28
1,468,386
214,070,660
99.57
917,473
237,751,972
99.38
1,487,270
274,013,894
99.29
1,951,433
303,244,097
99.66
1,039,049
312,666,119
99.63
1,062,804
324,722,667
98.76
4,072,479
354,514,153
99.63
352,723,062
99.55
-
Note: Penalties, interest, legal fees, and receipts arising from property tax audits of prior years’ returns are not included in the
tax amounts presented above.
89
Total collections to date
Total tax
Percentage
collections
of levy
196,489,017
100.00
202,887,176
100.00
214,988,133
100.00
239,239,242
100.00
275,965,327
100.00
304,283,146
100.00
313,728,923
99.96
328,795,146
100.00
354,514,153
99.63
352,723,062
99.55
Exhibit C-5
NORTH SLOPE BOROUGH, ALASKA
Water Sold by Type of Customer
Last Ten Fiscal Years
(in gallons)
2005
Type of customer:
Residential
Commercial
Total
16,362,186
7,786,456
24,148,642
2006
16,789,978
7,057,778
23,847,756
2007
16,035,559
6,524,019
22,559,578
2008
Fiscal year ended June 30
2009
2010
17,086,919
7,458,757
24,545,676
17,538,247
6,721,902
24,260,149
Total direct rate per 1,000 gallons
Note that the gallons sold increase steadily as additional villages were added to the water utilidor.
Source: North Slope Borough, Power and Light calendar year data.
90
17,111,300
6,587,512
23,698,812
2011
16,965,793
10,520,563
27,486,356
2012
15,701,619
7,958,382
23,660,001
2013
16,690,430
8,248,950
24,939,380
2014
17,550,215
7,580,957
25,131,172
Exhibit C-6
NORTH SLOPE BOROUGH, ALASKA
Water and Electric Rates
Last Ten Fiscal Years
Electricity – residential
Villages except Nuiqsut
and Barrow
Water
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Delivered
rate
per gallon
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
Utilidor
flat rate
up to 3,000
gallons1
69.00
69.00
69.00
69.00
69.00
69.00
69.00
69.00
69.00
69.00
Rate per
KW hours
0-6002
0.15
0.15
0.15
0.15
0.15
0.15
0.15
0.15
0.15
0.15
Rate per
KW hours
over 6013
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
Electricity – commercial
Villages except Nuiqsut and Barrow
Rate per
KW hours
0-1,0004
0.20
0.20
0.20
0.20
0.20
0.20
0.20
0.20
0.20
0.20
Rate per
KW hours
1,001-10,000
0.30
0.30
0.30
0.30
0.30
0.30
0.30
0.30
0.30
0.30
Notes: Rates are based on 5/8" meter, which is the standard household meter size. The authority charges an excess-use rate above normal demand.
1 Utilidor flat rate for seniors is $14.00 per month.
2 There is a minimum charge of $15.00 for residential usage less than 100 KW hours.
3 The differential for residential usage greater than 601 KW hours per month applies to all villages except Barrow.
4 There is a minimum charge of $15.00 for commercial usage less than 75 KW hours.
5 The differential for commercial usage greater than 1,001 KW hours per month applies to all villages except Barrow.
Beginning in 2010, Nuiqsut power is produced by natural gas so the rate per kw hour was reduced.
91
Rate per
KW hours
over 10,0005
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.35
Electricity –
residential
Nuiqsut
Rate per
KW hours
All
0.15
0.15
0.15
0.15
0.15
0.08
0.08
0.08
0.08
0.08
Electricity – commercial
Nuiqsut
Rate per
KW hours
0-1,0004
0.20
0.20
0.20
0.20
0.20
0.20
0.20
0.20
0.20
0.20
Rate per
KW hours
1,001-10,000
0.30
0.30
0.30
0.30
0.30
0.30
0.30
0.30
0.30
0.30
Rate per
KW hours
over 10,0005
0.35
0.35
0.35
0.35
0.35
0.08
0.08
0.08
0.08
0.08
DEBT CAPACITY
Exhibit D-1
NORTH SLOPE BOROUGH
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal year
ended June 30
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Governmental activities
General
obligation
Capital
bonds**
leases
506,631,214
10,134,781
471,251,351
9,269,325
443,725,679
8,350,490
432,285,381
7,374,983
392,003,771
6,339,309
395,261,663
5,239,756
420,476,694
4,072,385
392,036,387
2,833,015
369,164,071
1,517,202
321,798,227
120,232
Business-type activities
Revenue
bonds**
65,913,181
Notes: Details regarding the borough’s outstanding debt can be found in the notes to the financial statements.
a See Exhibit E-1 for personal income and population data.
* Information not available.
** Net of related premiums, discounts, and adjustments.
92
Total
516,765,995
480,520,676
452,076,169
439,660,364
398,343,080
400,501,419
424,549,079
394,869,402
370,681,273
387,831,640
Percentage of
personal
income a
94.0
*
*
*
*
*
*
*
*
*
Per capita a
39,445
36,356
31,814
28,272
24,107
22,860
24,213
21,684
20,106
20,586
Exhibit D-2
NORTH SLOPE BOROUGH
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
General
obligation
bonds*
506,631,214
471,251,351
443,725,679
432,285,381
392,003,771
395,261,663
420,476,694
392,036,387
369,164,071
321,798,227
Fiscal year ended June 30
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Note: Details regarding the Borough’s outstanding debt can be found in the notes to the financial statements.
a See Exhibit C-1 for property tax data.
b Population data can be found in Exhibit E-1.
* Net of related premiums, discounts, and adjustments.
Deductions are allowable for resources that are restricted to repaying the principal of debt outstanding.
93
Revenue
bonds*
65,913,181
Percentage of
actual taxable
value a of
property
4.91%
4.42%
3.82%
3.34%
2.63%
2.40%
2.48%
2.21%
1.92%
2.02%
Per capita b
38,671
35,655
31,226
27,798
23,723
22,561
23,981
21,529
20,024
20,579
Exhibit D-3
NORTH SLOPE BOROUGH, ALASKA
Governmental and Business-Type Activities Debt
June 30, 2014
Debt
outstanding*
Jurisdiction
Direct:
North Slope Borough
$
387,831,640
Note: There are no overlapping governmental units.
* Net of related premiums, discounts, and adjustments.
94
Percentage
applicable to
North Slope
Borough
100 %
Amount
applicable to
North Slope
Borough
$
387,831,640
Exhibit D-4
NORTH SLOPE BOROUGH, ALASKA
Legal Debt Margin Information
Last Ten Fiscal Years
There is no legal debt margin for municipalities in the State of Alaska.
95
Exhibit D-5
NORTH SLOPE BOROUGH, ALASKA
Pledged Revenue Coverage
Last Ten Fiscal Years
(Thousands of Dollars)
Water and Waste Water Revenue Bonds
Fiscal Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Operating
Revenues
$
- $
16,834,303
Variable
Expense
- $
10,704,992
Fixed
Expense
2,031,318
O&M**
Reserve Fund
$
- $
600,000
Total
Operating and
Maintenance
Expenses
- $
13,336,310
Net
Operating
Revenues
- $
3,497,993
Payment of
Interest on
the Bonds
Funds Available
for Deposit to the
Development Fund
-$
-
** Represents Operations and Maintenance (O&M) Reserve Fund to be funded 90 days of fixed O&M Expense, with initial transfer of $600,000 in FY2014.
96
3,497,993
Coverage
-
DEMOGRAPHIC AND ECONOMIC INFORMATION
Exhibit E-1
NORTH SLOPE BOROUGH
Demographic and Economic Statistics
Last Ten Fiscal Years
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Population
(1)
(2)
North Slope
State of
Borough
Alaska
13,101
663,661
13,217
670,053
14,210
676,987
15,551
679,720
16,524
692,314
17,520
710,231
17,534
722,190
18,210
732,298
18,436
736,399
18,840
*
Per capita income (3)
North Slope
Borough
$ 42,209
51,957
58,912
64,757
65,564
50,475
48,447
*
*
*
*Information not available.
Sources:
(1) State of Alaska, Department of Community and Economic Development
(2) State of Alaska, Department of Community and Economic Development
(3) U.S. Department of commerce, Bureau of Economic Analysis
(4) Alaska Department of Education and Early Development, Office of Data Management
(5) Alaska Department of Labor, Employment Security Division
97
State of
Alaska
$ 36,636
38,138
40,042
44,801
43,233
44,174
45,529
46,778
*
*
School
enrollment (4)
1,938
1,941
1,859
1,864
1,820
1,816
1,879
1,893
1,941
2,008
Unemployment
rate (5)
9.0 %
6.7
5.2
4.1
4.7
5.9
5.4
5.4
5.0
4.5
Exhibit E-2
North Slope Borough
Borough Employment By Industry (1)
Last 6 Fiscal Years
Industrial Classification
Natural Resource and Mining
Construction
Manufacturing
Trade, Trans & Utilities
Information
Financial Activities
Professional & Business Services
Educational & Health Services
Leisure & Hospitality
Other Services
Federal Government
State Government
Local Government
Total Average Employment
2008
Avg.
Empl.
% of
Total
2009
Avg.
Empl.
2010
Avg.
Empl.
% of
Total
% of
Total
2011
Avg.
Empl.
% of
Total
2012
Avg.
Empl.
8,314
237
472
35
238
1,186
31
575
228
24
65
1,810
62.9 %
1.8
3.6
0.3
1.8
9.0
0.2
4.4
1.7
0.2
0.5
13.7
8,429
197
478
259
1,225
31
550
250
22
66
1,913
62.8 %
1.5
3.6
1.9
9.1
0.2
4.1
1.9
0.2
0.5
14.3
8,445
201
563
40
325
1,206
149
540
290
23
66
1,968
61.1 %
1.5
4.1
0.3
2.4
8.7
1.1
3.9
2.1
0.2
0.5
14.2
8,384
270
546
41
316
1,270
304
541
131
24
65
1,950
60.6 %
2.0
3.9
0.3
2.3
9.2
2.2
3.9
0.9
0.2
0.5
14.1
8,449
259
573
40
303
1,446
329
560
155
21
67
1,928
13,215
100.0 %
13,420
100.0 %
13,816
100.0 %
13,842
100.0 %
14,130
% of
Total
59.8 %
1.8
4.1
0.3
2.1
10.2
2.3
4.0
1.1
0.1
0.5
13.6
2013
Avg.
Empl.
8,406
296
628
53
28
1,738
389
534
206
21
64
1,917
100.0 % 14,280
2013
% of
Total
58.9 %
1
2.1
7
N/A
4.4
4
0.4
9
0.2
10
12.2
3
2.7
6
3.7
5
1.4
8
0.1
11
0.4
9
13.4
2
100.0 %
(1)
Annual average based upon quarterly Area Employment and Payroll Industry Series Reports, State of Alaska, Department of Labor and Workforce Development.
Source:
State of Alaska, Department of Labor and Workforce Development, Research and Analysis Section.
98
Rank
13
OPERATING INFORMATION
Exhibit F-1
NORTH SLOPE BOROUGH, ALASKA
Full-Time Equivalent Borough Employees by Function/Program
Last Ten Fiscal Years
Function/Program
Primary government:
General government
Public works
Public safety:
Fire
Police
Search and rescue
Health and social services
Wildlife management
Total
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
*
*
175
247
176
275
221
229
215
283
229
287
232
292
237
292
237
291
242
291
*
*
*
*
*
27
58
18
132
16
673
27
58
18
141
16
711
48
65
18
115
20
716
36
68
20
155
22
799
40
68
22
160
23
829
40
68
22
170
23
847
44
67
23
175
23
861
44
67
23
175
23
860
45
67
23
175
24
867
-
Source: Borough departmental records.
* Either information is not available for this year or the records are not readily attainable.
99
Exhibit F-2
NORTH SLOPE BOROUGH, ALASKA
Operating Indicators by Function/Program
Last Ten Fiscal Years
Function/Program
Police:
Arrests
Fire:
Fire responses
Emergency responses
Aeromedical responses
Search and rescue:
Medevac (# of flights)
Search and rescue (# of flights)
Training (# of flights)
Other – incl depart support and maintenance (# of flights)
Landfill:
Barrow Landfill – Tons per year
Public works:
Roads maintained-all villages (miles)
Water:
Water/Sewer hookups
Health and social services:
Arctic Women in Crisis (AWIC) Program:
Safe Shelter placements (nights)
Emergency client air transportation
Crisis calls
Integrated behavioral services:
Adult/Adolescent outpatient substance abuse
treatment
Psychiatric emergency services
Women, Infants & Children (WIC) Program:
Contacts
Children’s Youth Services (CYS) Program:
Placements (nights)
Senior citizens programs:
Number of congregate meals served
Number of Meals on Wheels delivered
Total number of rides in Senior Vans
Assisted living: number of bed nights
Veterinary clinic :
Rabies vaccinations
Spays/Neuters
Appointments
Stray impounds
Animal control calls
Rabies testing (Arctic Fox)
Euthanasia
Community Health Aides (CHAP) Program:
Clinic visits
Medevacs
Public Health Nursing (PHN) Program:
Immunizations (flu, pneumovax, Td, childhood)
TB screenings
STI screenings
Child health screenings including EPSDT
Community education/classes/trainings
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
300
325
313
499
271
535
546
761
507
515
146
2,169
265
171
2,268
318
171
2,359
358
250
2,459
254
165
2,502
191
140
2,634
243
181
2,715
255
134
2,714
213
142
2,803
153
102
3,163
197
284
34
67
85
325
40
25
99
245
52
42
141
179
32
13
73
230
44
39
50
241
40
105
121
138
50
73
88
137
36
153
112
601
131
232
190
341
5,896
3,339
4,000
5,800
5,831
6,917
4,894
5,503
*
*
*
*
325
*
103
103
103
103
103
101
101
101
101
*
2,196
2,221
2,256
2,282
911
2,202
2,219
2,418
2,554
*
*
*
2,836
28
257
2,043
25
265
1,833
17
247
2,079
11
261
1,743
25
288
1,693
33
319
1,665
33
345
2,692
54
521
2,770
45
459
*
*
1,058
1,809
1,723
1,738
1,906
2,565
1,365
1,820
1,217
1,577
1,571
1,098
1,396
1,404
1,315
1,495
1,940
2,632
*
5,362
4,980
5,551
4,870
5,428
5,288
5,556
4,351
5,556
*
2,795
2,105
1,973
1,475
1,110
2,307
3,798
2,316
3,750
*
*
*
*
8,138
10,508
31,842
1,979
10,041
26,660
44,228
8,694
15,509
36,183
11,166
22,581
44,634
2,683
12,577
16,606
36,514
3,411
6,560
11,014
23,993
3,517
6,873
11,552
22,743
3,794
7,544
3,060
25,320
4,266
7,106
14,182
30,571
3,794
*
*
*
*
*
*
*
699
176
1,126
314
1,330
6
69
807
137
750
266
1,025
19
107
773
57
717
258
773
14
81
816
85
606
245
694
3
67
584
68
614
257
637
3
22
500
70
300
150
400
4
40
856
116
714
160
403
10
92
747
137
855
171
453
1
61
942
155
1,013
266
443
6
99
*
*
12,851
480
11,306
474
12,004
483
12,862
487
14,230
620
14,123
628
13,949
534
13,019
442
24,183
337
*
*
*
*
*
4,348
1,896
338
660
52
4,677
1,627
303
518
41
4,115
2,811
523
364
28
5,328
1,642
475
289
42
6,874
1,611
307
70
57
5,465
1,772
404
130
25
3,960
1,668
263
252
27
3,747
1,552
221
245
18
4,233
1,565
300
389
44
-
Source: North Slope Borough Department records.
* Either information is not available for this year or the records are not readily attainable.
100
-
Exhibit F-3
NORTH SLOPE BOROUGH, ALASKA
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Function/Program
Police:
Stations
Patrol Units 1
Fire:
Stations
Fire Trucks
Search and Rescue:
Helicopters
King Air plane
Lear Jet
Public Works:
Streets-miles
Water line-linear feet 2
Water tank storage-gallons 2
Power:
Grids
Generators
Power Lines (miles)
Health and Social Services:
Clinics & Shelters
Primary and Secondary Education:
Schools
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
*
*
8
40
8
41
8
43
8
45
8
47
8
50
8
53
8
60
8
68
*
*
9
18
9
18
9
19
9
19
9
20
9
21
9
22
9
23
9
23
*
*
*
2
1
1
2
1
1
2
1
1
2
1
1
2
1
1
2
1
1
2
1
2
1
1
2
1
1
103
122,984
36,723,330
103
122,984
36,788,066
103
122,984
36,787,079
103
122,984
35,306,994
101
122,984
35,306,994
101
122,984
35,306,994
101
122,984
37,054,994
101
260,264
39,208,592
*
*
*
103
122,984
35,753,161
-
*
*
*
7
37
35
7
37
35
7
37
35
7
38
35
7
36
118
7
36
118
7
36
118
7
36
118
7
36
118
*
17
17
17
17
17
17
17
17
17
*
12
12
12
12
11
11
11
11
11
Source: Borough departmental records
* Either information is not available for this year or the records are not readily attainable.
1 Including four-wheelers and snow machines.
2 Includes Barrow
101