Balance Sheet - Consolidated August 31, 2018

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ASSETS Current Assets - Funds Total Operating Total KVFD Reserve Total Restricted Total Capital Reserve Total Snow Removal Reserve Total COP Reserve Fund Total Current Assets - Funds Current Assets - Other Total Accounts Receivable, net Total Materials & Supplies Total Prepaid Expenses Total Current Assets - Other Capital Assets Total Buildings Total Generation Equipment Total General Plant & Other Total Construction in Progress Total Less: Accumulated Depreciation Total Capital Assets Non-Current Assets Total Capitalized Interest Bond Proceeds Total Restricted Funds Total Unamortized Debt Expenses, net Total Other Non-Current Assets Total Non-Current Assets Deferred Outflows Total Deferred Outflows Total Deferred Outflows Balance Sheet - Consolidated August 31, 2018 Actual Budget August, 2018 August, 2018 Variance 1,916,327.02 2,130,499.00 (214,171.98) 150,058.10 99,982.00 50,076.10 498,843.82 450,746.00 48,097.82 2,679,267.80 2,638,616.00 40,651.80 109,675.18 101,186.00 8,489.18 515,737.38 630,292.00 (114,554.62) 5,869,909.30 6,051,321.00 (181,411.70) 562,549.20 461,072.00 101,477.20 170,864.51 226,027.00 (55,162.49) 70,215.45 51,13 19,085.45 803,629.16 738,229.00 65,400.16 12,681,448.07 12,687,923.00 (6,474.93) 16,795,681.85 16,798,382.00 (2,700.15) 57,817,067.11 57,610,652.00 206,415.11 300,851.04 253,85 47,001.04 (21,591,479.22) (21,619,162.00) 27,682.78 66,003,568.85 65,731,645.00 271,923.85 (892,725.29) (893,031.00) 305.71 (892,725.29) (893,031.00) 305.71 661,797.98 661,797.98 661,797.98 661,797.98 Total Assets 71,784,382.02 71,628,164.00 156,218.02 Total Assets and Deferred Outflows LIABILITIES Current Liabilities Total Accounts Payable Total Accrued Interest Payable Total Customer Deposits Total Current Portion of Long-Term Debt Total Other Current Liabilities Total Current Liabilities Non-Current Liabilities Total Long-term Debt, less Current Portion Total Installment Loans Total Unearned Revenues Total Net Pension Liability Total Cushion of Credit Total Non-Current Liabilities 72,446,18 71,628,164.00 818,016.00 136,325.61 272,818.00 (136,492.39) 225,937.64 (297,986.00) 523,923.64 8,543.83 8,543.83 1,929,741.00 1,929,741.00 789,743.52 530,165.00 259,578.52 3,090,291.60 2,434,738.00 655,553.60 52,417,273.31 52,417,273.31 3,166,558.25 3,076,298.69 90,259.56 2,082.00 2,082.00 891,645.00 713,635.00 178,01 (772,357.13) (726,986.00) (45,371.13) 55,705,201.43 55,480,221.00 224,980.43 2

Deferred Inflows Total Deferred Inflows Total Deferred Inflows Balance Sheet - Consolidated August 31, 2018 Actual Budget August, 2018 August, 2018 Variance 47,601.99 47,601.99 47,601.99 47,601.99 Total Liabilities 58,795,493.03 57,914,959.00 880,534.03 Total Liabilities and Deferred Inflows 58,843,095.02 57,914,959.00 928,136.02 EQUITY Net Assets Total Restricted for Debt Service Total Unrestricted Total Net Assets 13,603,084.98 13,713,205.00 (110,120.02) 13,603,084.98 13,713,205.00 (110,120.02) Total Equity 13,603,084.98 13,713,205.00 (110,120.02) Total Liabilities, Deferred Inflows, and Equity 72,446,18 71,628,164.00 818,016.00 Database: Insight Production Parameters: {GlAcct.AcctType} in ["A", "L", "Q"] and {?Period to Post} = {GlAcctBal.PeriodPost} Report:D:\Homedir\PCS\Reports\ClientCustom\Calendar Combined Balance.rpt Last Modified: 10/13/2017 3

Budget Income Statement - Combined August 31, 2018 --------------------------Month Totals-------------------------------- ----------------------------Year to Date Totals----------------------- This Year Budget Variance Variance This Year Budget Variance Variance August August Dollar Percent YTD YTD Dollar Percent Commercial 139,804.33 125,06 14,744.33 11.79% 295,988.46 259,499.00 36,489.46 14.06% Residential 110,982.85 111,575.00 (592.15) -0.53% 249,250.11 233,074.00 16,176.11 6.94% KMPUD Internal Usage 193.90 193.90 na 382.81 382.81 na Imbalance Energy Other 16,468.71 15,908.00 560.71 3.52% 26,696.66 31,816.00 (5,119.34) -16.09% Property Taxes 68,816.00 68,816.00 % 137,632.00 137,632.00 % Base Rates 98,205.69 95,045.00 3,160.69 3.33% 196,391.10 190,133.00 6,258.10 3.29% Other Sales to Public Authorities 42,072.25 41,90 172.25 0.41% 85,387.21 85,576.00 (188.79) -0.22% Meter Charges 6,622.68 6,615.00 7.68 0.12% 13,246.42 13,23 16.42 0.12% Operating Revenues 483,166.41 464,919.00 18,247.41 3.92% 1,004,974.77 950,96 54,014.77 5.68% Cost of Goods Sold 54,915.80 38,021.00 16,894.80 44.44% 107,797.98 77,382.00 30,415.98 39.31% Salaries and Wages 102,538.57 109,732.00 (7,193.43) -6.56% 205,230.48 224,083.00 (18,852.52) -8.41% Payroll Taxes & EE Benefits 42,693.52 60,192.00 (17,498.48) -29.07% 127,830.16 123,132.00 4,698.16 3.82% Operations & Maintenance 65,076.95 145,138.00 (80,061.05) -55.16% 123,616.86 257,081.00 (133,464.14) -51.92% Contract Services 49,525.59 21,20 28,325.59 133.61% 53,265.55 42,40 10,865.55 25.63% Operating Expenses 37,485.82 38,05 (564.18) -1.48% 68,911.94 75,10 (6,188.06) -8.24% Board of Directors 11,728.94 11,613.00 115.94 1.00% 23,457.88 23,227.00 230.88 0.99% Depreciation 176,762.30 173,144.00 3,618.30 2.09% 353,503.18 346,288.00 7,215.18 2.08% G & A Allocations 2.00 (2.00) -10% 2.00 (2.00) -10% Internal Allocations 27,920.71 30,897.00 (2,976.29) -9.63% 57,194.11 63,099.00 (5,904.89) -9.36% Operating Expenses 568,648.20 627,989.00 (59,340.80) -9.45% 1,120,808.14 1,231,794.00 (110,985.86) -9.01% Total Operating (85,481.79) (163,07) 77,588.21-47.58% (115,833.37) (280,834.00) 165,000.63-58.75% Investment Income 679.42 15 529.42 352.95% 1,300.06 30 1,000.06 333.35% Other 25.00 25.00 na 5 5 Contribution Revenues Non-Operating Revenues 704.42 15 554.42 369.61% 1,350.06 30 1,050.06 350.02% Interest Expense 146,843.29 150,139.00 (3,295.71) -2.20% 293,766.64 297,984.00 (4,217.36) -1.42% Other Amortization 20,044.67 20,30 (255.33) -1.26% 40,089.33 40,60 (510.67) -1.26% Non-Operating Expenses 166,887.96 170,439.00 (3,551.04) -2.08% 333,855.97 338,584.00 (4,728.03) -1.40% GASB 68 Pension Expense GASB 68 Pension Expense Total Non-Operating (166,183.54) (170,289.00) 4,105.46-2.41% (332,505.91) (338,284.00) 5,778.09-1.71% (251,665.33) (333,359.00) 81,693.67-24.51% (448,339.28) (619,118.00) 170,778.72-27.58% 4

August 31, 2018 1 - General & Admin Budget Income Statement - General Fund --------------------------Month Totals-------------------------------- ----------------------------Year to Date Totals--------------------------- This Year Budget Variance Variance This Year Budget Variance Variance August August Dollar Percent YTD YTD Dollar Percent Other 20 20 275.00 275.00 na Property Taxes 68,816.00 68,816.00 % 137,632.00 137,632.00 % Operating Revenues 69,016.00 68,816.00 20 0.29% 137,907.00 137,632.00 275.00 0.20% Salaries and Wages 45,606.98 49,781.00 (4,174.02) -8.38% 97,783.99 106,518.00 (8,734.01) -8.20% Payroll Taxes & EE Benefits 16,704.70 40,359.00 (23,654.30) -58.61% 84,265.86 84,357.00 (91.14) -0.11% Operations & Maintenance 1,459.84 3,00 (1,540.16) -51.34% 5,933.43 6,00 (66.57) -1.11% Contract Services 40,296.55 18,00 22,296.55 123.87% 40,296.55 36,00 4,296.55 11.93% Operating Expenses 34,910.37 32,70 2,210.37 6.76% 64,066.06 65,40 (1,333.94) -2.04% Board of Directors 11,728.94 11,613.00 115.94 1.00% 23,457.88 23,227.00 230.88 0.99% G & A Allocations (150,507.38) (155,453.00) 4,945.62-3.18% (316,226.27) (321,502.00) 5,275.73-1.64% Operating Expenses 20 20 (422.50) (422.50) na Total Operating 68,816.00 68,816.00 % 138,329.50 137,632.00 697.50 0.51% Investment Income Other Contribution Revenues Non-Operating Revenues Interest Expense Amortization Non-Operating Expenses Total Non-Operating NET INCOME (LOSS) 68,816.00 68,816.00 % 138,329.50 137,632.00 697.50 0.51% 5

August 31, 2018 2 - Fire Department Budget Income Statement - General Fund --------------------------Month Totals-------------------------------- ----------------------------Year to Date Totals--------------------------- This Year Budget Variance Variance This Year Budget Variance Variance August August Dollar Percent YTD YTD Dollar Percent Other 6,423.67 7,40 (976.33) -13.19% 12,015.42 14,80 (2,784.58) -18.81% Operating Revenues 6,423.67 7,40 (976.33) -13.19% 12,015.42 14,80 (2,784.58) -18.81% Salaries and Wages 1,627.05 1,285.00 342.05 26.62% 3,149.82 2,811.00 338.82 12.05% Payroll Taxes & EE Benefits 1,051.32 837.00 214.32 25.61% 1,945.20 1,83 115.20 6.30% Operations & Maintenance 7,486.67 54,75 (47,263.33) -86.33% 12,271.18 71,50 (59,228.82) -82.84% Contract Services Operating Expenses 770.59 70 70.59 10.08% 1,216.72 1,40 (183.28) -13.09% Depreciation 2,097.79 2,08 17.79 0.86% 4,195.58 4,16 35.58 0.86% G & A Allocations 12,492.13 12,903.00 (410.87) -3.18% 26,246.80 26,685.00 (438.20) -1.64% Internal Allocations 95.47 95.47 na 189.45 189.45 na Operating Expenses 25,621.02 72,555.00 (46,933.98) -64.69% 49,214.75 108,386.00 (59,171.25) -54.59% Total Operating (19,197.35) (65,155.00) 45,957.65-70.54% (37,199.33) (93,586.00) 56,386.67-60.25% Other Contribution Revenues Non-Operating Revenues Interest Expense Amortization Non-Operating Expenses Total Non-Operating NET INCOME (LOSS) (19,197.35) (65,155.00) 45,957.65-70.54% (37,199.33) (93,586.00) 56,386.67-60.25% 6

August 31, 2018 3 - Parks & Recreation Budget Income Statement - General Fund --------------------------Month Totals-------------------------------- ----------------------------Year to Date Totals--------------------------- This Year Budget Variance Variance This Year Budget Variance Variance August August Dollar Percent YTD YTD Dollar Percent Other Operating Revenues Salaries and Wages 41.38 1,526.00 (1,484.62) -97.29% 55.20 2,843.00 (2,787.80) -98.06% Payroll Taxes & EE Benefits 29.36 993.00 (963.64) -97.04% 37.50 1,851.00 (1,813.50) -97.97% Operations & Maintenance 30 (30) -10% 60 (60) -10% Operating Expenses Depreciation 10 (10) -10% 20 (20) -10% G & A Allocations 1,505.08 1,555.00 (49.92) -3.21% 3,162.27 3,215.00 (52.73) -1.64% Internal Allocations 11.50 11.50 na 22.82 22.82 na Operating Expenses 1,587.32 4,474.00 (2,886.68) -64.52% 3,277.79 8,709.00 (5,431.21) -62.36% Total Operating (1,587.32) (4,474.00) 2,886.68-64.52% (3,277.79) (8,709.00) 5,431.21-62.36% Other Contribution Revenues Non-Operating Revenues Interest Expense Amortization Non-Operating Expenses Total Non-Operating NET INCOME (LOSS) (1,587.32) (4,474.00) 2,886.68-64.52% (3,277.79) (8,709.00) 5,431.21-62.36% 7

0 - Default August 31, 2018 Budget Income Statement - Water Fund --------------------------Month Totals-------------------------------- ----------------------------Year to Date Totals--------------------------- This Year Budget Variance Variance This Year Budget Variance Variance August August Dollar Percent YTD YTD Dollar Percent Commercial 2,255.98 1,727.00 528.98 30.63% 6,172.87 4,097.00 2,075.87 50.67% Residential 5,412.41 5,085.00 327.41 6.44% 13,187.21 12,594.00 593.21 4.71% KMPUD Internal Usage 33.93 33.93 na 67.94 67.94 na Other 277.22 833.00 (555.78) -66.72% 848.13 1,666.00 (817.87) -49.09% Base Rates 31,265.99 31,102.00 163.99 0.53% 62,535.60 62,247.00 288.60 0.46% Meter Charges 1,756.26 1,75 6.26 0.36% 3,512.78 3,50 12.78 0.37% Operating Revenues 41,001.79 40,497.00 504.79 1.25% 86,324.53 84,104.00 2,220.53 2.64% Salaries and Wages 5,105.20 8,03 (2,924.80) -36.42% 11,491.06 15,196.00 (3,704.94) -24.38% Payroll Taxes & EE Benefits 3,263.85 5,229.00 (1,965.15) -37.58% 7,343.39 9,895.00 (2,551.61) -25.79% Operations & Maintenance 397.20 4,95 (4,552.80) -91.98% 2,462.28 9,15 (6,687.72) -73.09% Contract Services 5,372.92 1,20 4,172.92 347.74% 5,872.12 2,40 3,472.12 144.67% Operating Expenses 697.96 1,10 (402.04) -36.55% 1,395.92 2,20 (804.08) -36.55% Depreciation 9,689.85 9,64 49.85 0.52% 19,374.49 19,28 94.49 0.49% G & A Allocations 26,188.28 27,049.00 (860.72) -3.18% 55,023.37 55,942.00 (918.63) -1.64% Internal Allocations 4,109.09 4,19 (80.91) -1.93% 8,406.06 8,558.00 (151.94) -1.78% Operating Expenses 54,824.35 61,388.00 (6,563.65) -10.69% 111,368.69 122,621.00 (11,252.31) -9.18% Total Operating (13,822.56) (20,891.00) 7,068.44-33.83% (25,044.16) (38,517.00) 13,472.84-34.98% Investment Income 87.14 87.14 na 167.06 167.06 na Other Contribution Revenues Non-Operating Revenues 87.14 87.14 na 167.06 167.06 na Interest Expense 1,405.08 1,299.00 106.08 8.17% 2,810.16 2,598.00 212.16 8.17% Amortization (79.82) (79.82) na (159.64) (159.64) na Non-Operating Expenses 1,325.26 1,299.00 26.26 2.02% 2,650.52 2,598.00 52.52 2.02% GASB 68 Pension Expense GASB 68 Pension Expense Total Non-Operating (1,238.12) (1,299.00) 60.88-4.69% (2,483.46) (2,598.00) 114.54-4.41% NET INCOME (LOSS) (15,060.68) (22,19) 7,129.32-32.13% (27,527.62) (41,115.00) 13,587.38-33.05% 8

0 - Default August 31, 2018 Budget Income Statement - Waste Water Fund --------------------------Month Totals-------------------------------- ----------------------------Year to Date Totals--------------------------- This Year Budget Variance Variance This Year Budget Variance Variance August August Dollar Percent YTD YTD Dollar Percent Commercial 9,747.79 12,912.00 (3,164.21) -24.51% 26,671.89 30,627.00 (3,955.11) -12.91% Residential 14,413.94 11,919.00 2,494.94 20.93% 36,887.00 28,271.00 8,616.00 30.48% KMPUD Internal Usage 53.60 53.60 na 107.53 107.53 na Other 327.74 625.00 (297.26) -47.56% 541.57 1,25 (708.43) -56.67% Base Rates 47,375.52 44,865.00 2,510.52 5.60% 94,756.18 89,73 5,026.18 5.60% Meter Charges 1,170.84 1,168.00 2.84 0.24% 2,341.86 2,336.00 5.86 0.25% Operating Revenues 73,089.43 71,489.00 1,600.43 2.24% 161,306.03 152,214.00 9,092.03 5.97% Salaries and Wages 24,247.83 12,152.00 12,095.83 99.54% 34,657.00 23,767.00 10,89 45.82% Payroll Taxes & EE Benefits 13,131.69 8,413.00 4,718.69 56.09% 18,635.34 16,477.00 2,158.34 13.10% Operations & Maintenance 2,639.78 8,00 (5,360.22) -67.00% 6,970.99 19,50 (12,529.01) -64.25% Contract Services 722.72 2,00 (1,277.28) -63.86% 3,182.48 4,00 (817.52) -20.44% Operating Expenses 114.20 1,50 (1,385.80) -92.39% 228.40 3,00 (2,771.60) -92.39% Depreciation 28,196.22 25,40 2,796.22 11.01% 56,387.20 50,80 5,587.20 11.00% G & A Allocations 26,188.28 27,049.00 (860.72) -3.18% 55,023.37 55,942.00 (918.63) -1.64% Internal Allocations 23,667.70 25,14 (1,472.30) -5.86% 48,501.35 51,345.00 (2,843.65) -5.54% Operating Expenses 118,908.42 109,654.00 9,254.42 8.44% 223,586.13 224,831.00 (1,244.87) -0.55% Total Operating (45,818.99) (38,165.00) (7,653.99) 20.05% (62,280.10) (72,617.00) 10,336.90-14.23% Investment Income 126.08 126.08 na 241.77 241.77 na Other Contribution Revenues Non-Operating Revenues 126.08 126.08 na 241.77 241.77 na Interest Expense 2,033.29 1,88 153.29 8.15% 4,066.58 3,76 306.58 8.15% Amortization (115.24) (115.24) na (230.48) (230.48) na Non-Operating Expenses 1,918.05 1,88 38.05 2.02% 3,836.10 3,76 76.10 2.02% GASB 68 Pension Expense GASB 68 Pension Expense Total Non-Operating (1,791.97) (1,88) 88.03-4.68% (3,594.33) (3,76) 165.67-4.41% NET INCOME (LOSS) (47,610.96) (40,045.00) (7,565.96) 18.89% (65,874.43) (76,377.00) 10,502.57-13.75% 9

0 - Default August 31, 2018 Budget Income Statement - Employee Housing Fund --------------------------Month Totals-------------------------------- ----------------------------Year to Date Totals--------------------------- This Year Budget Variance Variance This Year Budget Variance Variance August August Dollar Percent YTD YTD Dollar Percent Other 4,60 3,60 1,00 27.78% 9,38 7,20 2,18 30.28% Operating Revenues 4,60 3,60 1,00 27.78% 9,38 7,20 2,18 30.28% Salaries and Wages 363.00 (363.00) -10% 922.21 726.00 196.21 27.03% Payroll Taxes & EE Benefits 236.00 (236.00) -10% 509.55 472.00 37.55 7.96% Operations & Maintenance 170.06 5,30 (5,129.94) -96.79% 823.34 5,80 (4,976.66) -85.80% Contract Services Operating Expenses 19.44 19.44 na Depreciation 3,410.82 3,40 10.82 0.32% 6,821.63 6,80 21.63 0.32% G & A Allocations Internal Allocations 265.99 1,048.00 (782.01) -74.62% 535.33 2,14 (1,604.67) -74.98% Operating Expenses 3,846.87 10,347.00 (6,500.13) -62.82% 9,631.50 15,938.00 (6,306.50) -39.57% Total Operating 753.13 (6,747.00) 7,500.13-111.16% (251.50) (8,738.00) 8,486.50-97.12% Investment Income Other Contribution Revenues Non-Operating Revenues Interest Expense Amortization Non-Operating Expenses GASB 68 Pension Expense GASB 68 Pension Expense Total Non-Operating NET INCOME (LOSS) 753.13 (6,747.00) 7,500.13-111.16% (251.50) (8,738.00) 8,486.50-97.12% 10

0 - Default August 31, 2018 Budget Income Statement - Electricity Fund --------------------------Month Totals-------------------------------- ----------------------------Year to Date Totals--------------------------- This Year Budget Variance Variance This Year Budget Variance Variance August August Dollar Percent YTD YTD Dollar Percent Commercial 107,182.68 94,275.00 12,907.68 13.69% 220,779.37 192,545.00 28,234.37 14.66% Residential 71,926.77 73,325.00 (1,398.23) -1.91% 158,446.67 149,758.00 8,688.67 5.80% Imbalance Energy Other 776.22 1,00 (223.78) -22.38% (2,268.98) 2,00 (4,268.98) -213.45% Base Rates 15,702.87 15,393.00 309.87 2.01% 31,376.32 30,786.00 590.32 1.92% Other Sales to Public Authorities 42,072.25 41,90 172.25 0.41% 85,387.21 85,576.00 (188.79) -0.22% Meter Charges 2,237.34 2,237.00 0.34 0.02% 4,475.08 4,474.00 1.08 0.02% Operating Revenues 239,898.13 228,13 11,768.13 5.16% 498,195.67 465,139.00 33,056.67 7.11% Cost of Goods Sold 41,361.23 22,49 18,871.23 83.91% 77,713.74 45,869.00 31,844.74 69.43% Salaries and Wages 13,457.99 30,26 (16,802.01) -55.53% 32,389.01 59,552.00 (27,162.99) -45.61% Payroll Taxes & EE Benefits Operations & Maintenance 32,715.62 54,468.00 (21,752.38) -39.94% 69,718.72 111,291.00 (41,572.28) -37.35% Contract Services 3,133.40 3,133.40 na 3,696.90 3,696.90 na Operating Expenses 780.66 80 (19.34) -2.42% 1,561.32 1,60 (38.68) -2.42% Depreciation 123,183.96 123,54 (356.04) -0.29% 246,362.64 247,08 (717.36) -0.29% G & A Allocations 30,854.01 31,868.00 (1,013.99) -3.18% 64,826.38 65,908.00 (1,081.62) -1.64% Internal Allocations (914.44) (914.44) na (1,814.61) (1,814.61) na Operating Expenses 244,572.43 263,426.00 (18,853.57) -7.16% 494,454.10 531,30 (36,845.90) -6.94% Total Operating (4,674.30) (35,296.00) 30,621.70-86.76% 3,741.57 (66,161.00) 69,902.57-105.66% Investment Income 234.93 15 84.93 56.62% 450.51 30 150.51 50.17% Other 25.00 25.00 na 5 5 Contribution Revenues Non-Operating Revenues 259.93 15 109.93 73.29% 500.51 30 200.51 66.84% Interest Expense 139,588.28 143,612.00 (4,023.72) -2.80% 279,158.62 284,93 (5,771.38) -2.03% Amortization 20,445.53 20,30 145.53 0.72% 40,891.05 40,60 291.05 0.72% Non-Operating Expenses 160,033.81 163,912.00 (3,878.19) -2.37% 320,049.67 325,53 (5,480.33) -1.68% GASB 68 Pension Expense GASB 68 Pension Expense Total Non-Operating (159,773.88) (163,762.00) 3,988.12-2.44% (319,549.16) (325,23) 5,680.84-1.75% NET INCOME (LOSS) (164,448.18) (199,058.00) 34,609.82-17.39% (315,807.59) (391,391.00) 75,583.41-19.31% 11

0 - Default August 31, 2018 Budget Income Statement - Cable TV Fund --------------------------Month Totals-------------------------------- ----------------------------Year to Date Totals--------------------------- This Year Budget Variance Variance This Year Budget Variance Variance August August Dollar Percent YTD YTD Dollar Percent Other 1,35 1,35 % 2,70 2,70 % Operating Revenues 1,35 1,35 % 2,70 2,70 % Salaries and Wages 112.28 112.28 na 373.96 373.96 na Payroll Taxes & EE Benefits 74.73 74.73 na 217.91 217.91 na Operations & Maintenance 15 (15) -10% 228.00 30 (72.00) -24.00% Operating Expenses Depreciation 33.74 34.00 (0.26) -0.76% 67.48 68.00 (0.52) -0.76% G & A Allocations 1,505.07 1,555.00 (49.93) -3.21% 3,162.26 3,215.00 (52.74) -1.64% Internal Allocations 11.50 11.50 na 22.82 22.82 na Operating Expenses 1,737.32 1,739.00 (1.68) -0.10% 4,072.43 3,583.00 489.43 13.66% Total Operating (387.32) (389.00) 1.68-0.43% (1,372.43) (883.00) (489.43) 55.43% Investment Income Other Contribution Revenues Non-Operating Revenues Interest Expense Amortization Non-Operating Expenses GASB 68 Pension Expense GASB 68 Pension Expense Total Non-Operating NET INCOME (LOSS) (387.32) (389.00) 1.68-0.43% (1,372.43) (883.00) (489.43) 55.43% 12

0 - Default August 31, 2018 Budget Income Statement - Snow Removal Fund --------------------------Month Totals-------------------------------- ----------------------------Year to Date Totals--------------------------- This Year Budget Variance Variance This Year Budget Variance Variance August August Dollar Percent YTD YTD Dollar Percent KMPUD Internal Usage Other 1,168.10 1,168.10 na 1,168.10 1,168.10 na Operating Revenues 1,168.10 1,168.10 na 1,168.10 1,168.10 na Salaries and Wages 2,461.15 2,461.15 na 8,466.31 8,466.31 na Payroll Taxes & EE Benefits 2,228.19 2,228.19 na 5,073.77 5,073.77 na Operations & Maintenance 77 3,40 (2,63) -77.35% 1,998.69 5,80 (3,801.31) -65.54% Contract Services 145.00 145.00 na Operating Expenses 1,00 (1,00) -10% 1,00 (1,00) -10% Depreciation 5,631.32 4,44 1,191.32 26.83% 11,262.18 8,88 2,382.18 26.83% G & A Allocations 17,007.33 17,566.00 (558.67) -3.18% 35,733.56 36,329.00 (595.44) -1.64% Internal Allocations 129.98 10 29.98 29.98% 257.93 20 57.93 28.97% Operating Expenses 28,227.97 26,506.00 1,721.97 6.50% 62,937.44 52,209.00 10,728.44 20.55% Total Operating (27,059.87) (26,506.00) (553.87) 2.09% (61,769.34) (52,209.00) (9,560.34) 18.31% Investment Income 6.87 6.87 na 10.37 10.37 na Other Contribution Revenues Non-Operating Revenues 6.87 6.87 na 10.37 10.37 na Interest Expense 196.00 196.00 na 49 49 Amortization Non-Operating Expenses 196.00 196.00 na 49 49 GASB 68 Pension Expense GASB 68 Pension Expense Total Non-Operating (189.13) (189.13) na (479.63) (479.63) na NET INCOME (LOSS) (27,249.00) (26,506.00) (743.00) 2.80% (62,248.97) (52,209.00) (10,039.97) 19.23% 13

0 - Default August 31, 2018 Budget Income Statement - Propane Fund --------------------------Month Totals-------------------------------- ----------------------------Year to Date Totals--------------------------- This Year Budget Variance Variance This Year Budget Variance Variance August August Dollar Percent YTD YTD Dollar Percent Commercial 19,580.83 15,446.00 4,134.83 26.77% 40,290.23 30,83 9,460.23 30.69% Residential 8,170.65 10,297.00 (2,126.35) -20.65% 18,575.85 20,553.00 (1,977.15) -9.62% KMPUD Internal Usage 106.37 106.37 na 207.34 207.34 na Other 1,144.40 1,00 144.40 14.44% 1,782.25 2,00 (217.75) -10.89% Base Rates 3,861.31 3,685.00 176.31 4.78% 7,723.00 7,37 353.00 4.79% Meter Charges 1,458.24 1,46 (1.76) -0.12% 2,916.70 2,92 (3.30) -0.11% Operating Revenues 34,321.80 31,888.00 2,433.80 7.63% 71,495.37 63,673.00 7,822.37 12.29% Cost of Goods Sold 13,554.57 15,531.00 (1,976.43) -12.73% 30,084.24 31,513.00 (1,428.76) -4.53% Salaries and Wages 8,911.83 5,341.00 3,570.83 66.86% 13,101.17 10,682.00 2,419.17 22.65% Payroll Taxes & EE Benefits 5,712.25 3,478.00 2,234.25 64.24% 8,434.85 6,956.00 1,478.85 21.26% Operations & Maintenance 15,865.21 6,54 9,325.21 142.59% 16,291.73 18,58 (2,288.27) -12.32% Contract Services 72.50 72.50 na Operating Expenses 212.04 25 (37.96) -15.18% 424.08 50 (75.92) -15.18% Depreciation 4,518.60 4,51 8.60 0.19% 9,031.98 9,02 11.98 0.13% G & A Allocations 28,596.40 29,537.00 (940.60) -3.18% 60,082.99 61,087.00 (1,004.01) -1.64% Internal Allocations 496.76 419.00 77.76 18.56% 979.38 856.00 123.38 14.41% Operating Expenses 77,867.66 65,606.00 12,261.66 18.69% 138,502.92 139,194.00 (691.08) -0.50% Total Operating (43,545.86) (33,718.00) (9,827.86) 29.15% (67,007.55) (75,521.00) 8,513.45-11.27% Investment Income 224.40 224.40 na 430.35 430.35 na Other Contribution Revenues Non-Operating Revenues 224.40 224.40 na 430.35 430.35 na Interest Expense 3,620.64 3,348.00 272.64 8.14% 7,241.28 6,696.00 545.28 8.14% Amortization (205.80) (205.80) na (411.60) (411.60) na Non-Operating Expenses 3,414.84 3,348.00 66.84 2.00% 6,829.68 6,696.00 133.68 2.00% GASB 68 Pension Expense GASB 68 Pension Expense Total Non-Operating (3,190.44) (3,348.00) 157.56-4.71% (6,399.33) (6,696.00) 296.67-4.43% NET INCOME (LOSS) (46,736.30) (37,066.00) (9,670.30) 26.09% (73,406.88) (82,217.00) 8,810.12-10.72% 14

0 - Default August 31, 2018 Budget Income Statement - Solid Waste Fund --------------------------Month Totals-------------------------------- ----------------------------Year to Date Totals--------------------------- This Year Budget Variance Variance This Year Budget Variance Variance August August Dollar Percent YTD YTD Dollar Percent Commercial 1,037.05 70 337.05 48.15% 2,074.10 1,40 674.10 48.15% Residential 11,059.08 10,949.00 110.08 1.01% 22,153.38 21,898.00 255.38 1.17% Other 201.36 10 101.36 101.36% 255.17 20 55.17 27.59% Operating Revenues 12,297.49 11,749.00 548.49 4.67% 24,482.65 23,498.00 984.65 4.19% Salaries and Wages 966.88 994.00 (27.12) -2.73% 2,840.75 1,988.00 852.75 42.89% Payroll Taxes & EE Benefits 497.43 647.00 (149.57) -23.12% 1,366.79 1,294.00 72.79 5.63% Operations & Maintenance 3,572.57 4,28 (707.43) -16.53% 6,918.50 8,56 (1,641.50) -19.18% Contract Services Operating Expenses Depreciation G & A Allocations 6,170.80 6,373.00 (202.20) -3.17% 12,965.27 13,181.00 (215.73) -1.64% Internal Allocations 47.16 47.16 na 93.58 93.58 na Operating Expenses 11,254.84 12,294.00 (1,039.16) -8.45% 24,184.89 25,023.00 (838.11) -3.35% Total Operating 1,042.65 (545.00) 1,587.65-291.31% 297.76 (1,525.00) 1,822.76-119.53% Investment Income Other Contribution Revenues Non-Operating Revenues Interest Expense Amortization Non-Operating Expenses GASB 68 Pension Expense GASB 68 Pension Expense Total Non-Operating NET INCOME (LOSS) 1,042.65 (545.00) 1,587.65-291.31% 297.76 (1,525.00) 1,822.76-119.53% 15

Balance Sheet Comparison August 17-18 ASSETS Actual August, 2018 Actual August, 2017 Variance Current Assets - Funds Total Operating Total KVFD Reserve Total Restricted Total Capital Reserve Total Snow Removal Reserve Total COP Reserve Fund Total Current Assets - Funds Current Assets - Other 1,916,327.02 150,058.10 498,843.82 2,679,267.80 109,675.18 515,737.38 5,869,909.30 1,585,645.19 149,908.13 537,746.31 1,204,409.95 86,306.46 510,505.61 4,074,521.65 330,681.83 149.97 (38,902.49) 1,474,857.85 23,368.72 5,231.77 1,795,387.65 Total Accounts Receivable, net Total Materials & Supplies Total Prepaid Expenses Total Current Assets - Other Capital Assets 562,549.20 170,864.51 70,215.45 803,629.16 552,023.81 168,193.88 80,893.91 801,111.60 10,525.39 2,670.63 (10,678.46) 2,517.56 Total Buildings Total Generation Equipment Total General Plant & Other Total Construction in Progress Total Less: Accumulated Depreciation Total Capital Assets Non-Current Assets 12,681,448.07 16,795,681.85 57,817,067.11 300,851.04 (21,591,479.22) 66,003,568.85 12,660,579.68 16,795,681.85 57,637,619.64 264,832.92 (19,510,477.42) 67,848,236.67 20,868.39 179,447.47 36,018.12 (2,081,001.80) (1,844,667.82) Total Capitalized Interest Bond Proceeds Total Restricted Funds Total Unamortized Debt Expenses, net Total Other Non-Current Assets Total Non-Current Assets Deferred Outflows (892,725.29) (892,725.29) (649,157.81) (649,157.81) (243,567.48) (243,567.48) Total Deferred Outflows Total Deferred Outflows Total Assets Total Assets and Deferred Outflows 661,797.98 661,797.98 71,784,382.02 72,446,18 611,509.98 611,509.98 72,074,712.11 72,686,222.09 50,288.00 50,288.00 (290,330.09) (240,042.09) LIABILITIES Current Liabilities Total Accounts Payable Total Accrued Interest Payable Total Customer Deposits Total Current Portion of Long-Term Debt Total Other Current Liabilities Total Current Liabilities Non-Current Liabilities 136,325.61 225,937.64 8,543.83 1,929,741.00 789,743.52 3,090,291.60 80,036.90 235,748.51 1,152,414.00 631,146.33 2,099,345.74 56,288.71 (9,810.87) 8,543.83 777,327.00 158,597.19 990,945.86 Total Long-term Debt, less Current Portion Total Installment Loans Total Unearned Revenues Total Net Pension Liability Total Cushion of Credit Total Non-Current Liabilities Deferred Inflows 52,417,273.31 3,166,558.25 2,082.00 891,645.00 (772,357.13) 55,705,201.43 54,344,530.39 3,734,294.91 24,833.50 832,171.00 (1,578,316.69) 57,357,513.11 (1,927,257.08) (567,736.66) (22,751.50) 59,474.00 805,959.56 (1,652,311.68) Total Deferred Inflows Total Deferred Inflows Total Liabilities Total Liabilities and Deferred Inflows 47,601.99 47,601.99 58,795,493.03 58,843,095.02 77,912.99 77,912.99 59,456,858.85 59,534,771.84 (30,311.00) (30,311.00) (661,365.82) (691,676.82) EQUITY Net Assets Total Restricted for Debt Service Total Unrestricted Total Net Assets Total Equity 13,603,084.98 13,603,084.98 13,603,084.98 13,151,450.25 13,151,450.25 13,151,450.25 451,634.73 451,634.73 451,634.73 Total Liabilities, Deferred Inflows, and Equity 72,446,18 72,686,222.09 (240,042.09) 16

Income Statement Comparison August 17-18 2018 2017 Variance YTD YTD Dollar Commercial 295,988.46 Residential 249,250.11 KMPUD Internal Usage 382.81 Imbalance Energy Other 26,696.66 Property Taxes 137,632.00 Base Rates 196,391.10 Other Sales to Public Authorities 85,387.21 Meter Charges 13,246.42 Operating Revenues 1,004,974.77 Cost of Goods Sold 107,797.98 Salaries and Wages 205,230.48 Payroll Taxes & EE Benefits 127,830.16 Operations & Maintenance 123,616.86 Contract Services 53,265.55 Operating Expenses 68,911.94 Board of Directors 23,457.88 Depreciation 353,503.18 G & A Allocations Internal Allocations 57,194.11 Operating Expenses 1,120,808.14 Total Operating (115,833.37) 280,774.66 15,213.80 229,078.60 20,171.51 519.20 (136.39) 67,820.15 (41,123.49) 136,27 1,362.00 187,919.07 8,472.03 79,099.78 6,287.43 13,228.63 17.79 994,710.09 10,264.68 88,078.25 19,719.73 209,540.78 (4,310.30) 113,563.12 14,267.04 162,922.33 (39,305.47) 21,555.41 31,710.14 63,587.11 5,324.83 25,088.06 (1,630.18) 357,261.73 (3,758.55) 54,350.99 2,843.12 1,095,947.78 24,860.36 (101,237.69) (14,595.68) Investment Income 1,300.06 512.38 787.68 Other 5 5 Contribution Revenues Non-Operating Revenues 1,350.06 562.38 787.68 Interest Expense 293,766.64 310,686.54 (16,919.90) Other Amortization 40,089.33 40,089.33 Non-Operating Expenses 333,855.97 350,775.87 (16,919.90) Total Non-Operating Net Income/(Loss) (332,505.91) (448,339.28) (350,213.49) (451,451.18) 17,707.58 3,111.90 17

Preliminary Income Statement September 18 --------------------------Month Totals---------------- ----------------------------Year to Date Totals-------- September 30, 2018 This Year Budget Variance This Year Budget Variance September September Dollar YTD YTD Dollar Commercial 133,432.13 125,274.00 8,158.13 429,420.59 384,773.00 44,647.59 Residential 99,788.70 110,191.00 (10,402.30) 349,038.81 343,265.00 5,773.81 KMPUD Internal Usage 431.30 431.30 814.11 814.11 Imbalance Energy Other 20,502.82 20,908.00 (405.18) 47,199.48 52,724.00 (5,524.52) Property Taxes 68,816.00 68,816.00 206,448.00 206,448.00 Base Rates 98,173.68 95,045.00 3,128.68 294,564.78 285,178.00 9,386.78 Other Sales to Public Authorities 34,326.36 40,922.00 (6,595.64) 119,713.57 126,498.00 (6,784.43) Meter Charges 6,621.21 6,615.00 6.21 19,867.63 19,845.00 22.63 Operating Revenues 462,092.20 467,771.00 (5,678.80) 1,467,066.97 1,418,731.00 48,335.97 Cost of Goods Sold 40,943.00 40,943.00 148,740.98 118,325.00 30,415.98 Salaries and Wages 107,916.00 107,916.00 313,146.48 331,999.00 (18,852.52) Payroll Taxes & EE Benefits 57,395.00 57,395.00 185,225.16 180,527.00 4,698.16 Operations & Maintenance 83,492.00 83,492.00 207,108.86 340,573.00 (133,464.14) Contract Services 28,744.00 28,744.00 82,009.55 71,144.00 10,865.55 Operating Expenses 39,05 39,05 107,961.94 114,15 (6,188.06) Board of Directors 11,614.00 11,614.00 35,186.82 34,841.00 345.82 Depreciation 173,144.00 173,144.00 526,647.18 519,432.00 7,215.18 G & A Allocations 2.00 (2.00) Internal Allocations 30,177.00 30,177.00 87,371.11 93,276.00 (5,904.89) Operating Expenses 572,475.00 572,475.00 1,693,398.08 1,804,269.00 (110,870.92) Total Operating (110,382.80) (104,704.00) (5,678.80) (226,331.11) (385,538.00) 159,206.89 Investment Income 9,935.07 8,60 1,335.07 11,235.13 8,90 2,335.13 Other 1,244.00 1,244.00 1,294.00 1,294.00 Contribution Revenues Non-Operating Revenues 11,179.07 8,60 2,579.07 12,529.13 8,90 3,629.13 Interest Expense 146,822.25 150,124.00 (3,301.75) 440,588.89 448,108.00 (7,519.11) Other Amortization 20,30 20,30 59,773.25 60,90 (1,126.75) Non-Operating Expenses 167,122.25 170,424.00 (3,301.75) 500,362.14 509,008.00 (8,645.86) GASB 68 Pension Expense GASB 68 Pension Expen Total Non-Operating (155,943.18) (161,824.00) 5,880.82 (487,833.01) (500,108.00) 12,274.99 (266,325.98) (266,528.00) 202.02 (714,164.12) (885,646.00) 171,481.88 18

Five Year Operating Cash Waterfall With RUS Loan Rollover FYE 2019 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Revenue/Expenses AR Revenue $416,706 $416,426 $337,579 $351,345 $407,106 $720,292 $1,062,032 $1,059,135 $952,141 $924,716 $682,602 $460,909 Snow Removal Revenue $112,961 $112,195 $112,195 $112,195 Property Tax Revenue $35,000 $75,000 $329,765 $75,000 $311,031 Operating Expenses (w/out depreciation) ($430,512) ($454,698) ($399,181) ($419,515) ($485,602) ($575,015) ($568,535) ($540,917) ($538,723) ($481,651) ($369,615) ($354,141) Other Income $400,000 Transfer to Reserve for Switch Station ($160,000) ($200,000) Loans COP Interest ($65,100) ($55,300) COP Principal ($490,000) RUS Interest ($407,954) ($406,100) ($432,046) ($429,265) RUS Principal ($295,293) ($297,390) ($344,428) ($336,350) Bank of the West Loan ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) Capital Expenses Transfer to Cushion of Credit ($700,000) ($700,000) ($750,000) ($765,000) Net Changes ($20,906) ($565,473) ($768,702) ($122,309) $26,599 $725,372 $28,357 $455,818 ($343,682) $510,965 $305,887 ($354,301) Updated Operating Forecast $2,431,403 $1,930,073 $1,211,369 $1,089,060 $1,115,659 $1,841,031 $1,869,388 $2,325,206 $1,981,524 $2,492,489 $2,798,376 $2,444,076 Cushion of Credit $772,357 $772,357 $779,036 $779,036 $779,036 $75,546 $775,546 $775,546 $749,072 $749,072 $749,072 $748,457 Total Operating Cash $3,203,760 $2,702,430 $1,990,405 $1,868,096 $1,894,695 $1,916,577 $2,644,934 $3,100,752 $2,730,596 $3,241,561 $3,547,448 $3,192,533 Budget $3,436,190 $2,857,067 $2,147,720 $2,128,301 $2,155,757 $1,777,639 $2,705,996 $3,161,814 $2,791,658 $3,302,623 $3,608,510 $3,253,595 Variance to Budget ($232,430) ($154,637) ($157,315) ($260,205) ($261,062) $138,938 ($61,062) ($61,062) ($61,062) ($61,062) ($61,062) ($61,062) Reserve Fund Switch Station Expense ($6,411,181) Transfer in from Operating Cash $160,000 $200,000 Capital Expenses ($61,200) Transfer in from RUS Trustee $3,765,000 Updated Reserve Forecast $2,678,933 $2,678,933 $2,678,833 $131,452 $131,452 $131,452 $331,452 $331,452 $331,452 $331,452 $331,452 $331,452 LAIF Balance $192 $192 $457 $457 $457 $457 $457 $457 $457 $457 $457 $457 19

Five Year Operating Cash Waterfall With RUS Loan Rollover FYE 2020 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Revenue/Expenses AR Revenue $455,833 $454,334 $424,943 $414,748 $428,518 $716,994 $1,127,355 $1,061,028 $959,213 $941,202 $739,140 $460,048 Snow Removal Revenue $114,091 $113,317 $113,317 $113,317 Property Tax Revenue $35,000 $83,258 $337,860 $75,000 $302,936 Operating Expenses (w/out depreciation) ($410,640) ($357,673) ($357,227) ($375,374) ($517,069) ($646,763) ($582,515) ($558,761) ($549,411) ($465,997) ($423,502) ($349,543) Other Income Transfer to Reserve ($500,000) ($500,000) Loans COP Interest ($55,300) ($45,100) COP Principal ($510,000) RUS Interest ($399,436) ($400,873) ($394,712) ($391,620) RUS Principal ($303,728) ($301,715) ($308,974) ($311,132) Bank of the West Loan ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) CAT Payment Transfer to Cushion of Credit ($700,000) ($700,000) ($800,000) ($700,000) Net Changes $73,093 ($475,739) ($639,384) $146,364 $17,666 ($440,294) $488,916 $450,067 ($397,298) $43,105 $308,538 ($293,659) Updated Operating Forecast $2,517,168 $2,041,429 $1,402,045 $1,548,409 $1,566,075 $1,125,781 $1,614,697 $2,064,764 $1,667,466 $1,710,571 $2,019,109 $1,725,451 Cushion of Credit $748,457 $748,457 $745,293 $745,293 $745,293 $742,705 $742,705 $742,705 $839,019 $839,019 $839,019 $836,267 Total Operating Cash $3,265,625 $2,789,886 $2,147,338 $2,293,702 $2,311,368 $1,868,486 $2,357,402 $2,807,469 $2,506,485 $2,549,590 $2,858,128 $2,561,718 Budget Variance to Budget $3,265,625 $2,789,886 $2,147,338 $2,293,702 $2,311,368 $1,868,486 $2,357,402 $2,807,469 $2,506,485 $2,549,590 $2,858,128 $2,561,718 Reserve Fund Switch Station Expense Transfer in from Operating Cash $0 $0 $0 $0 $0 $0 $500,000 $0 $0 $500,000 $0 $0 Capital Expenses Reserve Fund Balance Updated Reserve Forecast $331,452 $331,452 $331,452 $331,452 $331,452 $331,452 $831,452 $831,452 $831,452 $1,331,452 $1,331,452 $1,331,452 LAIF Balance $457 $457 $457 $457 $457 $457 $457 $457 $457 $457 $457 $457 20

Five Year Operating Cash Waterfall With RUS Loan Rollover FYE 2021 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Revenue/Expenses AR Revenue $461,564 $460,047 $430,286 $419,963 $433,906 $726,009 $1,141,529 $1,074,369 $971,274 $953,036 $748,434 $465,832 Snow Removal Revenue $115,232 $114,450 $114,450 $114,450 Property Tax Revenue $35,000 $83,258 $346,201 $75,000 $302,936 Operating Expenses (w/out depreciation) ($419,058) ($365,006) ($364,550) ($383,070) ($527,669) ($660,022) ($594,457) ($570,216) ($560,674) ($475,550) ($432,184) ($356,708) Transfer to Reserve Loans COP Interest ($45,100) ($34,500) COP Principal ($530,000) RUS Interest ($392,902) ($382,355) ($382,388) ($382,388) RUS Principal ($309,259) ($400,099) ($319,985) ($318,148) Bank of the West Loan ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) CAT Payment Transfer to Cushion of Credit ($700,000) ($300,000) ($850,000) ($700,000) Net Changes $70,406 ($487,159) ($641,364) $145,025 $13,587 ($43,404) $1,000,624 $462,553 ($446,500) $545,386 $309,150 ($295,040) Updated Operating Forecast $1,795,857 $1,308,698 $667,334 $812,359 $825,946 $782,541 $1,783,165 $2,245,718 $1,799,218 $2,344,605 $2,653,755 $2,358,715 Cushion of Credit $836,267 $836,267 $834,106 $834,106 $834,106 $351,652 $351,652 $351,652 $499,279 $499,279 $499,279 $498,743 Total Operating Cash $2,632,124 $2,144,965 $1,501,440 $1,646,465 $1,660,052 $1,134,193 $2,134,817 $2,597,370 $2,298,497 $2,843,884 $3,153,034 $2,857,458 Budget Variance to Budget $2,632,124 $2,144,965 $1,501,440 $1,646,465 $1,660,052 $1,134,193 $2,134,817 $2,597,370 $2,298,497 $2,843,884 $3,153,034 $2,857,458 Reserve Fund Switch Station Expense Transfer in from Operating Cash $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Capital Expenses Reserve Fund Balance Updated Reserve Forecast $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 LAIF Balance $457 $457 $457 $457 $457 $457 $457 $457 $457 $457 $457 $457 21

Five Year Operating Cash Waterfall With RUS Loan Rollover FYE 2022 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21 Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 Revenue/Expenses AR Revenue $467,383 $465,846 $435,710 $425,257 $439,376 $735,161 $1,155,919 $1,087,912 $983,517 $965,050 $757,868 $471,705 Snow Removal Revenue $116,384 $115,595 $115,595 $115,595 Property Tax Revenue $35,000 $83,258 $347,778 $75,000 $302,936 Operating Expenses (w/out depreciation) ($427,731) ($372,560) ($372,095) ($390,998) ($538,590) ($673,682) ($606,760) ($582,017) ($572,277) ($485,392) ($441,128) ($364,091) Transfer to Reserve Loans COP Interest ($34,500) ($23,400) COP Principal ($555,000) RUS Interest ($384,115) ($392,585) ($364,454) ($370,546) RUS Principal ($316,437) ($415,026) ($339,140) ($326,145) Bank of the West Loan ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) CAT Payment Transfer to Cushion of Credit ($700,000) ($700,000) ($700,000) ($700,000) ($700,000) Net Changes $67,552 ($503,314) ($643,485) $143,543 $9,281 ($446,768) $1,005,432 $475,395 ($295,860) ($152,442) $309,640 ($296,550) Updated Operating Forecast $2,426,267 $1,922,953 $1,279,468 $1,423,010 $1,432,291 $985,523 $1,990,955 $2,466,350 $2,170,490 $2,018,047 $2,327,687 $2,031,137 Cushion of Credit $498,743 $498,743 $498,191 $498,191 $498,191 $390,580 $390,580 $390,580 $386,986 $1,086,986 $1,086,986 $1,090,295 Total Operating Cash $2,925,010 $2,421,696 $1,777,659 $1,921,201 $1,930,482 $1,376,103 $2,381,535 $2,856,930 $2,557,476 $3,105,033 $3,414,673 $3,121,432 Budget Variance to Budget $2,925,010 $2,421,696 $1,777,659 $1,921,201 $1,930,482 $1,376,103 $2,381,535 $2,856,930 $2,557,476 $3,105,033 $3,414,673 $3,121,432 Reserve Fund Switch Station Expense Transfer in from Operating Cash $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Capital Expenses Reserve Fund Balance Updated Reserve Forecast $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 LAIF Balance $457 $457 $457 $457 $457 $457 $457 $457 $457 $457 $457 $457 22

Five Year Operating Cash Waterfall With RUS Loan Rollover FYE 2023 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23 Revenue/Expenses AR Revenue $472,789 $471,234 $440,749 $430,175 $444,458 $743,665 $1,169,289 $1,100,496 $994,893 $976,212 $766,634 $477,161 Snow Removal Revenue $117,548 $116,751 $116,751 $116,751 Property Tax Revenue $35,000 $83,258 $347,778 $75,000 $302,936 Operating Expenses (w/out depreciation) ($436,668) ($380,344) ($379,869) ($399,167) ($549,843) ($687,758) ($619,438) ($594,178) ($584,235) ($495,534) ($450,345) ($371,698) Transfer to Reserve ($700,000) Loans COP Interest ($23,400) ($11,900) COP Principal ($575,000) RUS Interest ($373,900) ($381,818) ($355,152) ($360,744) RUS Principal ($324,612) ($315,678) ($347,486) ($335,088) Bank of the West Loan ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) ($7,100) CAT Payment Transfer to Cushion of Credit ($700,000) ($500,000) ($700,000) ($700,000) ($700,000) Net Changes $64,020 ($514,610) ($646,220) $141,456 $4,265 ($251,185) $307,280 $487,318 ($296,442) ($151,422) $309,189 ($298,701) Updated Operating Forecast $2,095,158 $1,580,548 $934,328 $1,075,783 $1,080,049 $828,864 $1,136,144 $1,623,461 $1,327,020 $1,175,598 $1,484,787 $1,186,085 Cushion of Credit $1,090,295 $1,090,295 $1,091,783 $1,091,783 $1,091,783 $894,287 $894,287 $894,287 $891,649 $1,591,649 $1,591,649 $1,595,817 Total Operating Cash $3,185,453 $2,670,843 $2,026,111 $2,167,566 $2,171,831 $1,723,150 $2,030,431 $2,517,748 $2,218,669 $2,767,247 $3,076,436 $2,781,902 Budget Variance to Budget $3,185,453 $2,670,843 $2,026,111 $2,167,566 $2,171,831 $1,723,150 $2,030,431 $2,517,748 $2,218,669 $2,767,247 $3,076,436 $2,781,902 Reserve Fund Switch Station Expense Transfer in from Operating Cash $0 $0 $0 $0 $0 $0 $700,000 $0 $0 $0 $0 $0 Capital Expenses Reserve Fund Balance Updated Reserve Forecast $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $1,331,452 $2,031,452 $2,031,452 $2,031,452 $2,031,452 $2,031,452 $2,031,452 LAIF Balance $457 $457 $457 $457 $457 $457 $457 $457 $457 $457 $457 $457 23

KNOWN BUDGET VARIANCES FOR FYE 2019 Annual Impact Snow Removal Wages & Benefits $13,540 TOTAL ANNUAL IMPACT $13,540 24

COMMUNICATION OF INTERNAL CONTROL RELATED MATTERS FOR KIRKWOOD MEADOWS PUBLIC UTILITY DISTRICT June 30, 2018 25

Communication of Internal Control Related Matters To the Board of Directors of Kirkwood Meadows Public Utility District In planning and performing our audit of the financial statements of Kirkwood Meadows Public Utility District (the District) as of and for the year ended June 30, 2018, in accordance with auditing standards generally accepted in the United States of America, we considered the District s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District s internal control. Accordingly, we do not express an opinion on the effectiveness of the District s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. During our engagement, the following matters came to our attention that we believe are control deficiencies; however, they do not rise to the level of material weaknesses. 1. WAGE AUTHORIZATION Observation: Through testing of payroll and discussions with District staff, we discovered that wages coded to the fire department were paid out at a higher rate than the employee s approved salary. This process was enacted as a compensation for the loss of CALPERS benefits that are not available for fire department wages. There is currently no formal approval or authorization for this process. Recommendation: To ensure the correct payout of fire department wages, MA recommends that the District formalize this rate with proper approval and documentation. Management Response: The District will develop a policy regarding the compensation for loss of CalPERS benefits when an employee, normally employed in another District department, works in the Fire Department other than as a volunteer. 2 26

2. SECONDARY REVIEW Observation: During our testing of internal controls, we noted a number of areas where manual processes existed without subsequent independent review, formal documentation of that review, or retention of source documents. These include: Manual month-end closing entries: Manual month-end journal entries are determined and posted by the District Accountant and then placed on the internal drive where they can be accessed for review by other District employees; however, there is no formal review of these entries other than a highlevel review of the monthly financial statements. Monthly reconciliations of balance sheet accounts: The Accountant performs the monthly reconciliations and places them on the internal drive where they can be accessed for review by other District employees; however, there is no formal review of these reconciliations. Recommendation: The review process is a primary means of preventing or detecting errors or fraud. For all areas, we recommend that documentation of this review be obtained in order to promote accountability, and to ensure that it is occurring regularly. Management Response: The District believes our review process is through and adequate and that the General Manager s review of the monthly statements is sufficient. We do not perceive that there are areas where review does not occur. There is a month end check list that is completed and initialed by the Assistant Manager of Administration and all reconciliations are available to be reviewed electronically and saved on the District s network server. 3. Other-Post-Employment Benefit Liability Actuary Observation: During our testing of Other-Post-Employment Benefit Liabilities, we noted that the District does not use an actuary for determining this liability. Recommendation: In determining the Other-Post-Employment Liability, we recommend that the District engage in an Actuary, to more accurately report this liability. Management Response: The District agrees that to ensure we are reporting our OPEB Liabilities in accordance with GASB 75 we should and will engage in an Actuary for next fiscal year. The District s written response to comments identified in our audit was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. This communication is intended solely for the information and use of management, the Board of Directors, and others within the organization and is not intended to be and should not be used by anyone other than these specified parties. 3 27

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Finance Committee: October 9, 2018 Agenda Item 5 STAFF REPORT Employee Housing Rental Rates Requested Action: Discussion and possible action on Employee Housing Rental Rates Background: Current Rental Rates: 1 Bedroom 60 per month + utilities 2 Bedroom 80 per month + utilities The current rates have been in place since the Lava Rock Lodge was built in 2004. In the past we have rented out units to non KMPUD employees at those same rates. Fulltime KMPUD employees who live in the Valley receive a credit of $400 per month towards their rent/utilities. Kirkwood Mountain Resort does provide housing options for their employees as well. For a bed (2 beds per bedroom) in a 4 bedroom flat in the Quad the rate is $180 every 2 weeks that includes utilities. For a bedroom in a Renwick 2-bedroom unit the rate is $650 per month that includes utilities. Prepared By: Kelly McBride 45

Finance Committee: October 9, 2018 Agenda Item 6 STAFF REPORT Bad Debt Policy Requested Action: Discussion an possible action to create a formal Bad Debt/Write Off Policy. Background: The District currently has no formal bad debt/write off policy. In the past we have brought the list of accounts that have gone unpaid to the board for approval to be written off. The District does not use any collection agency to attempt to collect on past due accounts. If a property goes past due over 60 days, the District will lock off water service until the account is paid in full. If it goes over 90 days, we will place a lien on that property. If, however a property is sold, and the old owners do not pay an outstanding balance then there is not a way to place a lien on the property. Most of those balances that go unpaid are due to the above-mentioned scenario regarding a property being sold and the old owner does not pay the remaining balance on the account. The District does not collect social security numbers, require any type of credit checks, or ask for deposits when a customer applies for service. Due to this it makes collecting on old owners who have sold very difficult. Currently there is a total of $4,281.35 in uncollectible accounts. These accounts have been written off in our billing system so that we are not still sending bills to these customers, but they have not yet been expensed to bad debt. All the accounts that are included in that total balance were more than a year old with no payments being made on the balances. Prepared By: Kelly McBride 46