CAFR FY2005KODIAK ISLAND BOROUGH, ALASKA
Comprehensive Annual Financial Report
July 1, 2004 - June 30, 2005
Ricky Gifford, Borough Manager
Prepared by Finance Department
Karleton Short, Finance Director
KODIAK ISLAND BOROUGH
Table of Contents
Page
Introductory Section
Letter of Transmittal
I -V
GFOA Certificate of Achievement
vi
Organizational Chart
vii
Elected Officials (Photographs)
viii
Borough Officials
ix
Boards and Cormnittees
x -xi
Map of Kodiak Island Borough
xii
Financial Section:
Independent Auditors' Report
1-2
Management's Discussion and Analysis
3 -11
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets
12
Statement of Activities
13 -14
Fund Financial Statements:
Balance Sheet — Governmental Funds
15
Reconciliation of Net Assets Between the Government -Wide and Fund Financial
Statements
16
Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental
Funds
17
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities
18
Balance Sheet — Proprietary Funds — Business -Type Activities — Enterprise Funds
19
Statement of Revenues, Expenses, and Changes in Fund Equity — Proprietary Funds —
Business -Type Activities — Enterprise Funds
20
Statement of Cash Flows — Proprietary Funds — Business -Type Activities — Enterprise
Funds
21 -22
Notes to Financial Statements
23 -54
Required Supplementary Information:
Schedule of Funding Progress — PERS
55
Budgetary Comparison Schedule — General Fund
56 -57
Budgetary Comparison Schedule — Special Revenue Fund — Facilities
58
Notes to Required Supplementary Information — Budgetary Comparison Schedules
59
Nonmajor Governmental Funds:
Combining Balance Sheet
60
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
61
Nonmajor Special Revenue Funds:
Combining Balance Sheet
62 -65
KODIAK ISLAND BOROUGH
Table of Contents, Continued
Page
Nonmajor Special Revenue Funds:
Combining Balance Sheet 62 -65
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
(Deficits)
66 -69
Schedules of Revenues, Expenditures, Transfers, and Changes in Fund Balances
(Deficits) — Budget and Actual:
Fire and Road Service Areas:
Fire:
Fire Protection Area No. 1
70
Women's Bay Fire Department
71
Kodiak Airport Fire District
72
Road:
Monashka Bay Road Service Area
73
Service District No. 1
74
Women's Bay Road Service Area
75
Bay View Road Service Area
76
Service Area No. 2
77
Coastal Management
78
Child Care Assistance Program
79
L.E.P.C.
80
Land Sales
81
Buildings and Grounds
. 82
Woodland Acres Street Light Service Area
83
Kodiak Arts Council
84
Tourism Development
85
Trinity Acres Lighting District
86
Mission Lake Tide Gate
87
Fern Fuller Trust
88
Trinity Acres Paving
89
Debt Service Funds:
Balance Sheet — Other
90
Schedule of Revenues. Expenditures, and Changes in Fund Balances — Budget and Actual
— Other
91
Schedule of Revenues, Expenditures, and Changes in Fund Balances (Deficits) — Budget
and Actual — Education and Health
92
Nonmajor Capital Projects Fund:
Balance Sheet
93
Statement of Revenues. Expenditures and Changes in Fund Deficits
94
Schedule of Capital Projects
95 -96
Enterprise Funds:
Municipal Solid Waste Collection and Disposal Fund:
Statement of Revenues. Expenses, and Changes in Fund Equity — Budget and Actual
97
1
'
KODIAK ISLAND BOROUGH
1
Table of Contents, Continued
Page
Hospital Facilities Fund:
Statement of Revenues, Expenses, and Changes in Fund Equity — Budget and Actual
98
911 Services Fund:
Statement of Revenues, Expenses, and Changes in Fund Equity — Budget and Actual
99
Kodiak Fisheries Research Center Fund:
'
Statement of Revenues, Expenses, and Changes in Fund Equity — Budget and Actual
100
Supplementary Schedules:
Summary of Bonded Debt Service Requirements to Maturity
101
General Obligation Refunding Bonds, 1998 Series A — Retirement Schedule
102
General Obligation Bonds, 2000 Series E — Retirement Schedule
103
'
General Obligation Bonds, 2000 Series F — Retirement Schedule
General Obligation Bonds, 2003 Series A — Retirement Schedule
104
105
General Obligation Bonds, 2004 Series A — Retirement Schedule
106
General Obligation Bonds, 2004 Series B — Retirement Schedule
107
Statistical Section — Fund Information:
General Governmental Expenditures and Other Uses by Function — Last Ten Fiscal Years
108
General Revenues by Source — Last Ten Fiscal Years
109
'
Property Tax Levies and Collections — Last Ten Fiscal Years
110
Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years
111
Property Tax Rates and Contributions to the School District — Last Ten Fiscal Years
112 -113
Ten Largest Property Taxpayers
114
Ratio of Net General Bonded Debt to Assessed Value and Net General Bonded Debt per
Capita — Last Ten Fiscal Years
115
Computation of Direct and Overlapping Debt
116
'
Computation of Legal Debt Margin
117
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
'
Expenditures and Transfers — Last Ten Fiscal Years
Demographic Statistics — Last Ten Fiscal Years
118
119
Property Value, Construction and Bank Deposits — Last Ten Fiscal Years
120
Miscellaneous Statistical Data
121 -122
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INTRODUCTORY SECTION
Kodiak Island Borough
Finance Department
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486 -9320 Fax (907) 486 -9399
December 16, 2005
Members of the Assembly
Kodiak Island 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 accounting principles generally
accepted in the United State of America (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 Kodiak
Island Borough (Borough) for the fiscal year ended June 30, 2005.
■ 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, 2005, 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 unqualified opinion that
1 the Borough's financial statements for the fiscal year ended June 30, 2005, are fairly presented in
conformity with GAAP. The independent auditor's report is presented as the first component of the
financial section of this report.
1]
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Members of the Assembly
Kodiak Island Borough, Alaska
June 30, 2005
The independent audit of the financial statements of the Borough was part of a 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
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 Kodiak Island Borough lies at the western border of the Gulf of Alaska, approximately 40 miles south
of the Kenai Peninsula. Kodiak Island is the largest island in Alaska and the second largest in the United
States. About two- thirds of the Borough lies in the Kodiak archipelago with the remaining third on the
Alaska Peninsula, across the Shelikof Strait from Kodiak Island. The Shelikof Strait is only 20 miles wide
in places. The Borough encompasses 7,130 square miles, making it slightly smaller than the State of
Massachusetts and serves a population of 13,811.
The Borough was incorporated September 30, 1963, as a Second Class Borough by Chapter 146 Sessions,
Laws of Alaska 1961, as amended. The powers granted to the Borough include area -wide powers and non
area -wide powers. Area -wide powers are health, education, assessment and collection of taxes for both the
Borough and cities within the Borough, planning and zoning, and general administrative services. Non
area -wide powers include parks and recreation, economic development, solid waste disposal, and animal
control. Service districts within the Kodiak Island Borough provide fire protection, road maintenance and
construction, and street lighting. A Mayor/Manager form of government governs the Borough. The Mayor
is elected at large while the Borough Assembly appoints the Manager. The Assembly is composed of seven
members who are elected at- large.
The Borough provides a full range of services including fire protection, the construction and maintenance
of roads and other infrastructure, community and economic development, health and sanitation, culture and
recreation and solid waste collection and disposal. The Borough also is financially accountable for a legally
separate school district which is reported separately within the Borough's financial statements. Additional
information on this legally separate entity 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 manager. The
Borough manager uses these requests as the starting point for developing a proposed budget. The Borough
Manager then presents this proposed budget to the assembly for review by April 30. The assembly is
required to hold public hearings on the proposed budget and to adopt a final budget by no later than
June 10. The appropriated budget is prepared by fund and department. The Assembly makes appropriation
transfers between funds and /or departments only after the adoption of an ordinance. Borough staff may
execute transfers between line items within a department. Amendments to the budget can occur anytime
during the fiscal year through the Borough Assembly or administrative action. Expenditures may not
legally exceed appropriations at the following levels: Capital Projects Funds — project level, all other funds
— department level. All funds, except Capital Projects Funds, are budgeted on an annual basis
encompassing a fiscal year. Budgets of Capital Projects Funds generally encompass the period from
Members of the Assembly
Kodiak Island Borough, Alaska
June 30, 2005
start-up to project completion, which is generally greater than one year. Budget -to- actual comparisons are
provided in this report for each individual governmental and proprietary fund for which an appropriated
annual budget has been adopted. For the general fund and facilities special revenue fund. this comparison
is presented on pages 56 -58 as part of required supplementary information. For governmental funds, other
than the general fund and facilities special revenue fund, this comparison is presented in the governmental
fund subsection of this report, which starts on page 60. Also included in the governmental fund subsection
are project - length budget -to- actual comparisons for each of the capital projects. For proprietary funds, this
comparison is presented in the proprietary funds subsection of this report, which starts on page 97.
I
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. The economic condition of the Kodiak Island Borough remains healthy. The main
industries of the Borough are commercial fishing, logging, and tourism. While some segments of the
commercial fishing industry have declined, others have grown. There have been large cutbacks in the
(' logging industry, which can be attributed back to the slowdown in the Asian economy. Tourism continues
to grow in Kodiak with an increased number of visitors each year. To accommodate this demand,
construction of fishing lodges, bed and breakfast accommodations and recreational facilities has increased
along with an increase in charter boat and guide operations. There has also been an increase in the number
of cruise ships visiting Kodiak in the recent years as the cruise ship companies have expanded their tours of
Alaska's coastal communities.
Relatively new to the Kodiak Island Borough is the aerospace industry, which began with construction of
the Kodiak Launch Complex in 1998. Owned by the Alaska Aerospace Development Corporation
(AADC), a public corporation of the State of Alaska, the Kodiak Launch complex is the first complete
launch facility built in the United States since the 1960's and the first not owned by the Federal
Government. The state -of- the -art facility includes a launch control center, payload processing facility,
spacecraft assembly building and launch pad. It is designed to handle small to medium sized rockets used
to launch low earth orbit satellites, as well as military, scientific and research missions.
Kodiak is home to the largest U.S. Coast Guard base in the country, employing nearly 1,400 people and
providing vital services to the marine industries that are an integral part of Kodiak's make -up as well as
making a significant contribution to the Kodiak community.
The Seafood industry is by far the largest industry in the Kodiak Island Borough. This industry includes
commercial fishing, fisheries research, management and enforcement, seafood processing, and
maintenance and support services. Kodiak is home to the largest port in the State, housing over 700
commercial vessels and consistently ranks among the top ten ports in the United States in terms of amount
and value of product delivered.
Employment varies throughout the year with July, August, and September being the peak months due to
the increased activity in the fisheries and related businesses, and then declines in November and
December when fishing quotas are reached. The unemployment for 2005 was 8.6% percent compared to
9.7 percent in 2004 and 11.2 percent in 2003. Throughout fiscal year 2005, the unemployment rate has
fluctuated from 6.8% to 15.3 %, with an average of 11.1 %.
H
' Members of the Assembly
Kodiak Island Borough, Alaska
■ June 30, 2005
Long -term financial planning. Every year the Borough adopts a five -year strategic plan. In this plan the
Borough decides what its' goals and objectives are for the next five years. The Borough breaks these goals
out based on our Mandatory and Adopted powers. To view the complete Strategic plan you can visit our
web site at www.kib.co.kodiak.ak.us.
■ Cash management policies and practices. Operating funds of the Borough are invested in interest
producing instruments in accordance with the Borough's investment code. Cash forecasts are prepared to
enhance investment income and reduce market risk by matching investment maturities to anticipated cash
flows. Investment income includes appreciation or depreciation in the fair value of investments.
Risk management. The Borough maintains an adequate fund balance in the General Fund. plus certain
other funds where the liability may arise, to cover potential losses that may not be covered by insurance or
the deductible portion of claims that are covered by insurance. In addition, various control techniques,
including employee accident prevention training, have been implemented to minimize accident - related
losses. Third party coverage is currently maintained for all of the Borough's property and activities.
Additional information on the Borough's risk management activity can be found in note 8 of the notes to
the financial statements.
Pension and other post employment benefits. The Borough participates in the Alaska Public Employees
Retirement System (PERS), a defined benefit agent, multiple employer public employee retirement system.
PERS was established and is administered by the State of Alaska to provide pension, post employment
healthcare, death, and disability benefits to eligible participants. At June 30, 2003 (date of most recent
actuarial analysis), the actuarial value of liabilities exceeded the actuarial value of assets by $2.5 million.
The Borough also administers a Section 457 deferred compensation arrangement for eligible Borough
employees.
Additional information on the Borough's pension arrangements and post employment benefits can be
found in Note 10 in the notes to the financial statements.
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
annual financial report (CAFR) for the fiscal year ended June 30, 2004. This was the sixteenth consecutive
year that the Borough has received this prestigious award. In order to be awarded a Certificate of
Achievement, 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 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 preparation of this report. Credit also
must be given to the mayor and the assembly for their unfailing support for maintaining the highest
standards of professionalism in the management of the Borough's finances.
tv
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Members of the Assembly
Kodiak Island Borough, Alaska
June 30, 2005
Respectfully submitted,
Rick L. Gifford
Borough Manager
w .4t, A. A'4-
Karleton G. Short
Director of Finance
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Kodiak Island Borough,
Alaska
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2004
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
Q Oi THE �N
UMTEO STATES N
ANO No
WAPGM
` IOM President
1 �0
S ELL �o\S
Executive Director
vi
Kodiak Island Borough
Organizational Chart
Fiscal Year 2005
ELECTORATE
T
BOROUGH
MAYOR ASSEMBLY
>r
Kodiak Island Borough
PROGRAMMERI
ANALYST
OPERATIONS
SUPERVISOR
NETWORK
ADMINISTRATOR
ASSISTANT FIRE
CHIEF
ARTS COUNCIL
DIRECTOR
BOROUGH
MANAGER
ADMINISTRATIVE
ASSISTANT
BOROUGH BOROUGH
ATTORNEY CLERK
ASSISTANT DEPUTY CLERK
CLERK
COMMUNITY
ENGINEERING/
FINANCFIMIS
DEVELOPMENT
ENVIRONMENTAL
FACILITIES
ASSESSOR
DIRECTOR
DIRECTOR
SPECIALIST
DIRECTOR
MAINTENANCE
WORKER
BALER&ANDFILL
SUPERVISOR
ASSOCIATE
PROPERTY
REVENUE
GENERAL
PLAN ME
APPRAISER
ACCOUNTANT
ACOUNTANT
SECRETARY In
BALER
OPERATOR II
ASSOCIATE
KFRC
ASSESSMENT
CASHIER
PLArI IVEw'ENF
MAINTENANCE
CLERK 11
ACOUNTING
ENGINEER
TECNQACCTS
PAYABLE
BALER
OPERATOR
KFRC
ASSESSMENT
DRAFTING
RECEPTIONIST
CLERK I
SECRETARY III
ACOUNINNO
TECHNICIAN
BALER
TECWPAYROLL
OPERATORI
Projects
SECRETARY 111
BALER
Engineer
CHILD CARE
OPERATOR 1
ASSISTANCE
ADMIN
Proiocls
OPERA OR 1
Assistant
vii
PROGRAMMERI
ANALYST
OPERATIONS
SUPERVISOR
NETWORK
ADMINISTRATOR
MAYOR AND ASSEMBLY MEMBERS
Jerome Selby
Mayor, 2007
Shawn (Tuck) Bonney
Deputy Presiding Officer,
At Large, 2005
Tom Abell
At Large, 2005
Pat Branson
At Large, 2007
Reed Oswalt
At Large, 2005
Cecil Ranney
At Large, 2006
Nancy Wells
At Large, 2005
viii
Barbara Williams
At Large, 2007
KODIAK ISLAND BOROUGH
KODIAK, ALASKA
BOROUGH OFFICIALS
YEAR ENDED JUNE 30, 2005
MAYOR
Jerome Selby `07
ASSEMBLY
Tom Abell `05
Patricia Branson `07
Cecil Ranney `06
Barbara Williams `07
MANAGEMENT
Tuck Bonney (Deputy Presiding Officer) `05
Reed Oswalt `05
Nancy Wells `05
RickGifford ................................................................................................................. ............................... Borough Manager
KarletonG. Short ........................................................................................... ............................... Finance Director/Treasurer
Bud Cassidy ................................................................... ............................... ....................Engineering and Facilities Director
JudithA. Nielsen, CMC ............................................................................. ............................... ........................Borough Clerk
Vacant................................................................................................ ............................... Community Development Director
Vacant......................................................................................................................................... ............................... Assessor
RobertA. Himes .................................................................................. ............................... ......................Assistant Fire Chief
Jamin, Ebell, Schmitt & Mason .............................. ............................... ........................Borough Attorney (Contracted Firm)
BettyWalters .......................................................................................... ............................... Superintendent, School District
Vacant................................................................................................ ............................... ........................General Accountant
CassandraJuenger .................................................................................................... ............................... Revenue Accountant
LaurieWhiddon ............................................................................................................ ............................... Purchasing Agent
ix
I
Woodland Acres Street Lighting
Service Area Advisory Board
VACANT
Citizens Board of Equalization
Cheryl McNeil
Jeff Sanford
Tim Hurley
Jim Nagan
Karenia Hackett
Reed Oswalt, Alternate
Parks and Recreation Committee
Kevin Foster
Mike Sirofchuck
Jeff Huntley
Patrick Saltonstall
Hans Tschersich
Pam Foreman
Murphy Forner
Robert Greene
Heather Turner
Wayne Biessel, State Rep., ex- officio
Ian Fulp, City Rep., ex- officio
Elizabeth Odell, KIBSD Rep.
x
Building Code Board of Appeals
(Architectural Review Board)
Scott Arndt
Jerrol Friend
Gregg Hacker
Charlie Jerling
Jay Johnston
Brent Watkins
Reed Oswalt, Assembly Rep.
Bob Tucker, KIBSD Rep., ex- officio
Barry Still, School Board Rep, ex officio
Bud Cassidy, KIB Rep., ex- officio
Personnel Advisory Board
William King
Brian Beck
Pam Foreman
Lauri Whiddon, KIB staff
Fire Protection Area No. 1
Advisory Board
* Scott Arndt
Dave Billings
Cliff Davidson
Greg Spalinger
Robert Himes, ex- officio
Sharon Lea Adinolfi, KIB staff
Bav View Road Service Area
Advisory Board
Dawn Black
Jim Schauff
Reed Oswalt
Fred Roberts
Service Area No. 2 Commission
INACTIVE
Monashka Bav Road Service Area
Advisory Board
Darlene Turner
Andrew Devries
Chaz Glagolich
Bruce McNeil
David Sundberg
School Board
Scott Arndt
Roy Brown
Jeff Stephan
Elizabeth Odell
Norm Wooten
CDR Virginia Cameron, USCG Rep.
Sheila Roberts - Staff
Jordan Rodgers, Student Rep.
Betty Walters, KIBSD, ex- officio
Planning and Zoning Commission
Dr. Gary A. Carver
Jerrol Friend
Casey Janz
David King
1
Dennis McMurry
Reed Oswalt
Brent Watkins
Woodland Acres Street Lighting
Service Area Advisory Board
VACANT
Citizens Board of Equalization
Cheryl McNeil
Jeff Sanford
Tim Hurley
Jim Nagan
Karenia Hackett
Reed Oswalt, Alternate
Parks and Recreation Committee
Kevin Foster
Mike Sirofchuck
Jeff Huntley
Patrick Saltonstall
Hans Tschersich
Pam Foreman
Murphy Forner
Robert Greene
Heather Turner
Wayne Biessel, State Rep., ex- officio
Ian Fulp, City Rep., ex- officio
Elizabeth Odell, KIBSD Rep.
x
Building Code Board of Appeals
(Architectural Review Board)
Scott Arndt
Jerrol Friend
Gregg Hacker
Charlie Jerling
Jay Johnston
Brent Watkins
Reed Oswalt, Assembly Rep.
Bob Tucker, KIBSD Rep., ex- officio
Barry Still, School Board Rep, ex officio
Bud Cassidy, KIB Rep., ex- officio
Personnel Advisory Board
William King
Brian Beck
Pam Foreman
Lauri Whiddon, KIB staff
Fire Protection Area No. 1
Advisory Board
* Scott Arndt
Dave Billings
Cliff Davidson
Greg Spalinger
Robert Himes, ex- officio
Sharon Lea Adinolfi, KIB staff
Bav View Road Service Area
Advisory Board
Dawn Black
Jim Schauff
Reed Oswalt
Fred Roberts
Service Area No. 2 Commission
INACTIVE
Monashka Bav Road Service Area
Advisory Board
Darlene Turner
Andrew Devries
Chaz Glagolich
Bruce McNeil
David Sundberg
Service Area No. I Advisory Board
Kevin Arndt
Scott Arndt
Charles Lorenson
Ed Mahoney
Greg Spalinger
Peggy Tuttle
Womens Bay Service Area
Advisory Board
Chris Lynch
Craig Breitung
David Conrad
Edward Gondek
John Isadore
Spencer Schaeffer
Dale L. Rice, ex- officio
Airport Advisory Committee
William King
Lynda Ross
Robert Green, ex- officio
CDR John Furman, USCG ex- officio
Lt. Steve Raney, USCG ex- officio
Borough Clerk's Office, KIB staff
Aimort Fire Protection District AdvisoryB
Vacant
Arts Council Advisory Committee
Vacant
Mission Lake Tide Gate Service Area Board
Bill Hinkle
Norm Sutliff
Trinity Islands Subdivision Street Light Service Area
Board
Jennifer Wandersee
*41
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FINANCIAL SECTION
KPMG LLP
Suite 600
701 West Eighth Avenue
Anchorage, AK 99501
Independent Auditors' Report
The Honorable Mayor and Members of the Assembly
' Kodiak Island Borough:
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the Kodiak Island Borough, Alaska, as of and for the year —ended June 30, 2005, which
collectively comprise the Borough's basic financial statements as listed in the table of contents. These
financial statements are the responsibility of the Kodiak Island Borough, Alaska's management. Our
responsibility is to express opinions on these financial statements based on our audit.
' 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 of material
' misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
' presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
1 respective financial position of the governmental activities, the business -type activities, the aggregate
discretely presented component unit, each major fund, and the aggregate remaining fund information of the
Kodiak Island Borough, Alaska, as of June 30, 2005, and the respective changes in financial position and
cash flows, where applicable, thereof for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
As discussed in note 10 to the financial statements, in 2005 the Borough adopted Governmental
I Accounting Standards Board Statement No. 45, Accounting and Financial Reporting by Employers for
Postemplovment Benefits Other Than Pensions.
In accordance with Government Auditing Standards, we have also issued our report dated September 30,
2005 on our consideration of the Kodiak Island Borough, Alaska's internal control over financial reporting
and 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 the
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing the
results of our audit.
KPMG LLP, a U.S. limited liability partnership, is the U.S.
member firm of KPMG International, a Swiss cooperative.
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
The management's discussion and analysis on pages 3 through 11, the schedule of funding progress for
PERS on page 55 and the budgetary comparison information on pages 56 through 59 are not a required part
t of the basic financial statements but are supplementary information required by accounting principles
generally accepted in the United States of America. We have applied certain limited procedures. which
consisted principally of inquiries of management regarding the methods of measurement and presentation
' of the required supplementary information. However, we did not audit the information and express no
opinion on it.
' Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Kodiak Island Borough, Alaska's basic financial statements. The accompanying
supplementary information, including the introductory section, supplemental information, supplementary
1 schedules and statistical tables are presented for purposes of additional analysis and are not a required part
of the basic financial statements. The supplemental information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a whole. The introductory section,
t supplementary schedules and statistical tables have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we express no opinion on them.
' L
O >MC, LOP
' September 30, 2005
r
u
I1
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30. 2005
As management of the Kodiak Island Borough, we offer readers of these financial statements this narrative
overview and analysis of the financial activities of the Kodiak Island Borough for the fiscal year —ended June 30,
2005. We encourage readers to consider the information presented here in conjunction with additional
information that we have furnished in our letter of transmittal, which can be found on pages i - v of this report.
Financial Highlights
• The assets of the Kodiak Island Borough exceeded its liabilities at the close of FY2005 by $138.821.236.
Of this amount, $37,788,247 (unrestricted net assets) may be used to meet the Borough's ongoing
' obligations to citizens and creditors.
• In FY2005 the Borough's total net assets decreased by $2,231,230.
' 0 At the end of the current fiscal year, the Borough's governmental funds reported combined fund balances
of $63,368,369, an increase of $20,215,348 in comparison with the prior year. At the end of the FY2005,
unreserved fund balance for the general fund was $1,813,013, 16% of total general fund expenditures.
' • The Borough's total debt increased by $18,395,894 during FY2005. This is due to a general obligation
bond issuance of $20,350,000.
' 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 Kodiak
Island Borough's finances, in a manner similar to a private- sector business.
The statement of net assets presents information on all of the Kodiak Island Borough's assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as
a useful indicator of whether the financial position of the Kodiak Island Borough is improving or deteriorating.
' The statement of activities presents information showing how the government's net assets changed during the
most recent fiscal year. All changes in net assets 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 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 Kodiak Island 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 Kodiak Island Borough include general government, fire services,
emergency preparedness, community and economic development, health and sanitation, culture and recreation,
maintenance and operations, service district maintenance and education. The business -type activities of the
Kodiak Island Borough include a solid waste disposal and treatment facility, a Borough —owned hospital, a
911 emergency system and the Kodiak Fisheries Research Center.
The government -wide financial statements include not only the Kodiak Island Borough itself (known as the
primary government). but also the legally separate school district for which the Kodiak Island Borough is
financially accountable. Financial information for this component unit is reported separately from the financial
information presented for the primary government itself.
3 (Continued)
KODIAK ISLAND BOROUGH I
Management's Discussion and Analysis
June 30. 2005
The government -wide financial statements can be found on pages 12 -14 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 Kodiak Island 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
Kodiak Island Borough can be divided into two categories: governmental funds and proprietary 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 funds is narrower than that of the government -wide 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 Kodiak Island Borough maintains 33 individual governmental funds. Information is presented separately in
the governmental fund balance sheet and in the governmental fund statement of revenues. expenditures, and
changes in fund balances for the general fund, the facilities special revenue fund, and the education and health
debt service fund, which are all considered to be major funds. Data from the other nonmajor funds are combined
into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is
provided in the form of combining statements elsewhere in the supplementary information section of this report.
The Kodiak Island Borough adopts an annual appropriated budget for its general fund, special revenue funds, and
debt service funds. Budgetary comparison statements have been provided for the funds to demonstrate
compliance with this budget.
The basic governmental financial statements can be found on pages 15 -18 of this report.
Proprietary Funds — The only proprietary fund type that the Kodiak Island Borough uses is enterprise funds.
Enterprise funds are used to report the same functions presented as business -type activities in the
government -wide financial statements. Proprietary funds provide the same type of information as
government -wide financial statements, only in more detail. The Kodiak Island Borough uses enterprise funds to
account for a solid waste disposal and treatment facility, a Borough -owned hospital leased to the Sisters of
Providence d.b.a. Providence Alaska Medical Center. 911 phone charges and expenses, and rents and utilities of
the Borough -owned Kodiak Island Fisheries Research Center.
The Kodiak Island Borough adopts an annual appropriated budget for its proprietary funds. Budgetary
comparison statements have been provided for the funds to demonstrate compliance with the budget.
The basic proprietary fund financial statements can be found on pages 19 -22 of this report. f
4 (Continued) ':
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30. 2005
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 23 -54 of this report.
Other Information — In addition to the basic financial statements and accompanying notes. this report also
presents certain required supplementary information concerning the Kodiak Island Borough's progress in funding
its obligation to provide pension benefits to its employees and budgetary comparison schedules for the general
fund and facilities special revenue fund. Required supplementary information can be found on pages 55 -59 of
this report.
Government -wide Financial Analysis
Statement of Net Assets
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the
case of the Kodiak Island Borough assets exceeded liabilities by $138,821.236 at the close of the most recent
fiscal year.
The largest portion of the Kodiak Island Borough's net assets ($101,032,989 or 73 %) reflects its investment in
capital assets (e.g. land, buildings, equipment, and infrastructure) net of related debt. The Kodiak Island 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.
For more detailed information see page 12 of the statement of net assets.
The remaining balance of unrestricted net assets. $37.788,247, may be used to meet the Borough's ongoing
obligations to citizens and creditors.
5 (Continued)
Governmental
Business -type
activities
activities
Total
2005
2004
2005
2004
2005
004
Current and other assets
S
60.501.959
40.528.562
5,599,369
4,852,098
66.101,328
45,380,660
Capital assets
75.876,951
78,306.477
41.148.995
43262,618
117.025,946
121.569,095
Total assets
$
136,378.910
118,835,039
46,748.364
48.114.716
183.127,274
166.949,755
Long -term liabilities
$
33.698,409
14.488,102
4.284.141
4.206,526
37.982,550
18,694,628
Other liabilities
(3.525.900)
(3.224.199)
9.849.388
10.426.860
6.323,488
7.202,661
Total liabilities
S
30.172.509
11.263,903
14.133.529
14.633.386
44.306,038
25,897.289
Net assets:
Invested in capital assets.
net of related debt
S
61.154.204
63.818.375
39.878.785
42.000.495
101.032.989
105.818.870
Unrestricted
45.052.197
43.752.761
(7.263.950)
(8.519.165)
37.788.247
35.233.596
Total net assets
S
106.206.401
107.571.136
32.614.835
33.481.330
138.821.236
141.052.466
For more detailed information see page 12 of the statement of net assets.
The remaining balance of unrestricted net assets. $37.788,247, may be used to meet the Borough's ongoing
obligations to citizens and creditors.
5 (Continued)
KODIAK ISLAND BOROUGH ,
Management's Discussion and Analysis
June 30. 2005
Statement of Activities
The following condensed table of changes in net assets displays the revenues and expenses for the current and
prior year.
Governmental activities decreased the Kodiak Island Borough's net assets by $1,364,735.
The key element of this decrease is:
• Expenditures exceeded revenues. primarily due to depreciation expense of $2.765,511.
6 (Continued)
Governmental activities
Business -type
activities
Total
005
25U
2005
2004
2005
2004
Revenues:
Program revenues:
Charges for services $
466.120
548,433
5,888.596
5.663.035
6.354.716
6211.468
Operating grants and contributions
721,453
1.107.826
-
1.305
721.453
1.109.131
Capital grants
2,917,160
389,371
-
-
2,917.160
389.371
General revenues:
Property taxes
9.063,729
8,016,323
-
-
9,063,729
8,016.323
Investment earnings
1,750,321
1,004,215
70.812
23.977
1,821.133
1.028,192
Severance taxes
1,005.539
799.693
-
-
1.005,539
799.693
Grants and entitlements not
restricted to specific programs
2.384,538
2,461,527
-
-
2.384,538
2.461.527
Other
55.692
227.774
-
-
55.692
227.774
Total revenues
18.364,552
14.555.162
5.959,408
5.688.317
24.323,960
20.243.479
Expenses:
General government
3.466,289
2,626.429
-
-
3.466.289
2.626.429
Emergency preparedness
25,850
51.255
-
-
25.850
51.255
Community and economic development
509.680
536.111
-
-
509.680
536.111
Health and sanitation
365,072
370.434
-
-
365,072
370.434
Education. culture. and recreation
185.993
217.759
-
-
185,993
217,759
Fire services
491,172
336.389
-
-
491,172
336.389
Maintenance and operations
3.175.997
829,046
-
-
3.175.997
829,046
Service district maintenance
347,934
425.712
-
-
347,934
425,712
Fern Fuller Trust
22.547
24,500
-
-
22.547
24.500
Education
10.207.757
10.120.359
-
-
10.207,757
10,120,359
Interest on long -term debt
1.101.598
638.192
-
-
1.101,598
638.192
Municipal solid waste collection
-
-
3.362.348
3.051.127
3.362.348
3.051.127
Hospital facilities
-
-
1,344.987
2.669.144
1.344.987
2,669,144
911 services
-
-
69.178
80.427
69,178
80,427
Kodiak fisheries research center
-
-
1,878.788
1.800.972
1,878.788
1,800,972
Total expenses
19.899.889
16.176.186
6,655.301
7.601.670
26,555,190
23.777,856
Change in net assets before
transfers
(1.535,337)
(1,621.024)
(695.893)
(1.913,353)
(2.231,230)
(3,534.377)
Transfers
170.602
1.644.560
(170.602)
(1.644.560)
-
-
Change in net assets
(1.364.735)
23.536
(866.495)
(3.557.913)
(2,231.230)
(3.534377)
Net assets. beginning of year
107.571.1 36
107.547.600
33.481.330
37.039.243
141.052.466
144,586.843
Net assets. end of year $
106.206,401
107.571.136
32.614.835
33,481.330
138.821.236
141.052,466
Governmental activities decreased the Kodiak Island Borough's net assets by $1,364,735.
The key element of this decrease is:
• Expenditures exceeded revenues. primarily due to depreciation expense of $2.765,511.
6 (Continued)
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2005
Business -type activities decreased the Kodiak Island Borough's net assets by $866,495. Part of this decrease
resulted from the transfer of $170,602 to governmental funds. The proprietary funds had an operating loss of
$695,893 before transfers.
2005 Program Revenue vs. Expense by Governmental Activities
Interest on Long -Term
Debt
Education
Fern Fuller Trust
Service District
Maintenance
■expenses
(in
Maintenance and
millions)
Operation
Fire Services
■program
revenue
(in
millions)
Education, Culture and
Recreation
Health and Sanitation
Community Development
Emergency Preparedness
General Government
0 1 2 3 4 5 6 7 8 9 10
For more detailed information see pages 13 -14 of the statement of activities.
7 (Continued)
KODIAK ISLAND BOROUGH ,
Management's Discussion and Analysis
June 30, 2005
Financial Analysis of the Government's Funds
As noted earlier, the Kodiak Island Borough uses fund accounting to ensure and demonstrate compliance with
finance- related legal requirements.
Governmental Funds — The focus of the Kodiak Island Borough's governmental funds is to provide information
on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
Kodiak Island 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 current fiscal year, the Kodiak Island Borough's governmental funds reported combined
ending fund balances of $63,368,369, an increase of $20,215,348 in comparison to the beginning of the year.
$55,277,547 of this total amount constitutes unreserved fund balance, of which $749,999 is designated for
subsequent year expenditures and $54,527,548 is undesignated. The remaining $8,090,822 of fund balance is
reserved for long -term interfund borrowings.
The general fund is the main operating fund of the Kodiak Island Borough. At the end of the current fiscal year,
unreserved fund balance of the general fund was $1,813,013. As a measure of the general fund's liquidity, it may
be useful to compare fund balance to total expenditures. Unreserved fund balance represents 16% of total general
fund expenditures.
The fund balance of the Kodiak Island Borough's general fund decreased by $296,483 during the current fiscal
year. The key factor leading to this decrease was an increased level of school district funding.
The facilities fund had a total fund balance of $37,774,332, $29,683,510 of which is unreserved. Fund balance
increased $229,823 during the year because amounts transferred out were less than investment earnings.
Proprietary Funds — The Kodiak Island Borough's proprietary funds provide the same type of information
found in the government -wide financial statements, but in more detail.
Fund equity of the municipal solid waste collection and disposal fund amounted to $3,160,795, the hospital
facilities fund amounted to $18,291,176, the 911 services fund amounted to $32,644, and the Kodiak Fisheries
Research Center fund amounted to $11,130,220.
F1
(Continued)
' KODIAK ISLAND BOROUGH
' Management's Discussion and Analysis
June 30, 2005
The total decrease in net assets for municipal solid waste collection and disposal was $184,861, for the hospital
' facilities fund was $362,172, for the 911 services fund was $42,457, and for the Kodiak Fisheries Research
Center was $277,005. Other factors concerning the finances of these four funds have already been addressed in
the discussion of the Kodiak Island Borough's business -type activities.
Ij
Municipal Solid Hospital 911 Service Kodiak Fisheries
Waste Facilities Research Center
■ program
revenue (in
millions)
■ expenses
(in millions)
' General Fund Budgetary Highlights
Differences between the original budget and final amended budget can be briefly summarized as follows:
• The revenue budget for Federal PILT (payment in lieu of tax) was increased by $92,090.
• The revenue budget for raw fish tax was reduced by $20,000.
• The revenue budget passport fees were increased by $20,000.
• The expenditure budget of the Manager's Department was increased by $150,000. This was due to the
termination of the manager and the costs incurred in hiring a new manager and paying for an interim
manager.
• The expenditure budget of the Borough Attorney's budget was reduced by $50,000. This was due to lower
legal expenses than originally budgeted for.
• The expenditure budget of the Management Information Services budget was increased by $125,000. This
was to consolidate all computer — related maintenance expenses into one department. Other departments
were reduced by this same amount.
• The expenditure budget in the Assessing Department was reduced by $50,000. This savings was due to a
vacant position.
• The expenditure budget of the Community Development Department was reduced by $100,000 due to
vacant positions and a reduction in contracted services.
• The expenditure budget of the General Administration budget was increased by $40,000. This was to
account for writing off more debt to bad debt expense.
• The expenditure budget of the School District Support Department was increased by $88,030. This was for
increased funding to the School District.
9 (Continued)
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30. 2005
Differences between the final amended budget and actual can be summarized as follows:
• Real and personal property taxes were $15,063 under budget.
• Payment in lieu of taxes by the federal government was $11,963 over budget.
• The Borough Attorney's department was $25,690 under budget.
• The Finance Department was $40,374 under budget.
• Management Information Services was $24,172 over budget.
• Assessing was $23,676 under budget.
• Community Development was $4,792 over budget.
• Economic Development was $26,518 under budget.
• School District Support was $85,625 over budget.
Capital Asset and Debt Administration
Capital Assets — The Kodiak Island Borough's investment in capital assets for its governmental and business —
type activities as of June 30, 2005 amounted to $117,025,946 (net of accumulated depreciation). This investment
in capital assets includes land, buildings and improvements, improvements other than buildings, machinery and
equipment, and construction work -in- progress. The total net decrease in the Kodiak Island Borough's
investments in capital assets for the current fiscal year was $4,543.149 which was mostly due to current year
depreciation.
The following table displays the capital assets (net of depreciation) for the current year.
Additional information on the Kodiak Island Borough's capital assets can be found in note 5 on pages 33 -37 of
this report.
Long -term Debt — At the end of the current fiscal year, the Kodiak Island Borough had total bonded debt
outstanding of $32,965,000. This entire amount is backed by the full faith and credit of the Borough. The
remainder of the Kodiak Island Borough's debt represents capital leases and landfill closure and post - closure
costs.
(Continued) I
Governmental
Business -type
activities
activities
Total
2005
2004
2005
2004
2005
2004
Artwork
$ —
—
16.091
16,091
16.091
16.091
Land
23.187,184
23,187,184
1,661.499
1,661,499
24.848.683
24,848,683
Construction work -in- progress
3.883,844
3.547,859
191,389
101,104
4.075,233
3,648.963
Buildings and improvements
44.830.648
47.103.166
33.129,473
34.599.409
77.960.121
81,702.575
Improvements other than buildings
1.511,241
1.695,200
1219.044
3.238,155
4,730.285
4.933.355
Equipment
336,161
501.126
1.629.760
2.231,114
1.965.921
2.732.240
Infrastructure
2,127.873
2.271.942
—
—
2.127.873
2.271.942
Unclassified plant in service
—
—
1.301.739
1.415.246
1.301.739
1.415.246
$ 75.876,951
78.306.477
41.148.995
41262.618
117.025.946
121.569.095
Additional information on the Kodiak Island Borough's capital assets can be found in note 5 on pages 33 -37 of
this report.
Long -term Debt — At the end of the current fiscal year, the Kodiak Island Borough had total bonded debt
outstanding of $32,965,000. This entire amount is backed by the full faith and credit of the Borough. The
remainder of the Kodiak Island Borough's debt represents capital leases and landfill closure and post - closure
costs.
(Continued) I
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30. 2005
The following table displays the long -term debt for the current year:
The Kodiak Island Borough's total debt increased $18,502,767 during the current fiscal year. This increase was
due to primarily to the issuance of general obligation bonds for school construction in the amount of
$20,350,000.
During 2005, Fitch Investors Service reaffirmed the Borough's credit rating of A-. Borough general obligation
bonds are insured to a AAA rating at the time of issuance.
The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions. Debt capacity
is ultimately determined by the voters and the marketplace.
Additional information on the Kodiak Island Borough's long -term debt can be found in note 7 on pages 41-47 of
this report.
Economic Factors and Next Year's Budgets and Rates
• At June 30, 2005, the unemployment rate for the Kodiak Island Borough was 9.5 %, which is 1.1% lower
than one year ago. The state's unemployment rate was 6.5% at June 30, 2005.
• Property tax revenues received are projected to increase in future years as the Kodiak Island Borough's
assessed valuation continues to increase.
Requests for Information
This financial report is designed to provide a general overview of the Kodiak Island Borough's finances for all
those with an interest. Questions concerning any of the information provided in this report or requests for
additional information should be addressed to the Kodiak Island Borough. Director of Finance; 710 Mill Bay
Road; Kodiak, Alaska 99615.
Governmental
Business -type
activities
activities
Total
2005 2004
2005 2004
2005
2004
General obligation bonds.
including premium
S 33.080.509 14.385.000
— —
33.080.509
14,385.000
EPA loan
— 10.417
— —
—
] 0.417
ADEC loans
88,243 92.685
— —
88.243
92,685
Capital lease obligations
— —
— 185.970
—
185.970
Landfill post closure care costs
— —
3.013.931 2,758.433
3.013.931
2,758433
Long term interfund borrowings
— —
1.490.822 8.421.492
1.490.822
8,421,492
Notes payable
— —
1,270.210 1.262.123
1.270,210
1.262,123
$ 33,168,752 14.488,102
5.774.963 12.628.018
38.943.715
27,116,120
The Kodiak Island Borough's total debt increased $18,502,767 during the current fiscal year. This increase was
due to primarily to the issuance of general obligation bonds for school construction in the amount of
$20,350,000.
During 2005, Fitch Investors Service reaffirmed the Borough's credit rating of A-. Borough general obligation
bonds are insured to a AAA rating at the time of issuance.
The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions. Debt capacity
is ultimately determined by the voters and the marketplace.
Additional information on the Kodiak Island Borough's long -term debt can be found in note 7 on pages 41-47 of
this report.
Economic Factors and Next Year's Budgets and Rates
• At June 30, 2005, the unemployment rate for the Kodiak Island Borough was 9.5 %, which is 1.1% lower
than one year ago. The state's unemployment rate was 6.5% at June 30, 2005.
• Property tax revenues received are projected to increase in future years as the Kodiak Island Borough's
assessed valuation continues to increase.
Requests for Information
This financial report is designed to provide a general overview of the Kodiak Island Borough's finances for all
those with an interest. Questions concerning any of the information provided in this report or requests for
additional information should be addressed to the Kodiak Island Borough. Director of Finance; 710 Mill Bay
Road; Kodiak, Alaska 99615.
KODIAK ISLAND BOROUGH
Statement of Net Assets
June 30. 2005
(With summarized financial information for June 30. 20(13)
Assets
Equity in central treasury
Temporary investments
Other cash and cash
equivalents
Due from primary
government
Receivables:
Accounts and other
receivables, net
State of Alaska
Federal government
Property taxes, net of
allowance of $15,828
Severance taxes
Deferred charges
Inventories
Land sales contracts
receivable
Notes receivable
Capital assets:
Not being depreciated
Being depreciated, net
Total
Liabilities and Net Assets
Liabilities:
Accounts payable
Retainages payable
Accrued compensation
and related liabilities
Other accrued liabilities
Customer deposits
Unearned revenues
Due to component units
Internal balances
Noncurrent liabilities:
Due within one year
Due in more than
one year
Net pension and OPEB
obligation
Total liabilities
Net assets:
invested in capital assets.
net of related debt
Unrestricted
Net assets
Total
See accompanying notes to financial statements.
I?
Component
Primary government
unit
Total reporting entity
Governmental
Business -tvpe
School
activities
activities
Total
district
2005
2004
$ 1,360.588
359,908
1.720.496
-
1.720.496
1.496.600
57,096.653
4.520,730
61,617383
-
61.617,383
41,230.895
-
-
-
57.229
57.229
23.973
-
-
-
3,758,892
3,758.892
4.160.903
324,523
341.724
666.247
464,977
1.131224
1.642.339
463,204
100,000
563.204
989,670
1.552,874
1.505.696
6,355
-
6,355
190.162
196.517
225.586
352,850
-
352.850
-
352,850
372.481
273,391
-
273.391
-
273,391
-
41,478
-
41.478
-
41.478
-
-
277,007
277,007
349,639
626,646
581,019
42,272
-
42.272
-
42.272
50.056
540.645
-
540.645
-
540.645
-
27.071.028
1.868,979
28,940,007
-
28.940,007
28.513,737
48.805,923
3M80,016
88.085.939
136.142
88.222,081
93,159,327
S 136,378.910
46.748.364
183.127.274
5.946,711
189.073,985
172.962,612
S 486.228
336.068
822,296
245.755
1.068,051
1,158.425
22.270
-
22,270
-
22.270
22,270
22,610
32.262
54.872
2,620.482
2,675.354
2,689,747
351,456
420,292
771.748
-
771,748
528,280
1.203
-
1,203
-
1.203
678
37,763
854.444
892,207
11,979
904,186
1,310,935
3,758.892
-
3.758,892
-
3,758.892
4.160,903
(8,206.322)
8.206322
-
-
-
-
1.993,393
-
1,993.393
261.880
2.255,273
1.731,707
31, 348.119
4,284,141
35,632.260
424,518
36.056.778
17,332,799
356,897
-
356.897
242.345
599.242
-
30,172,509
14,133.529
44.306,038
3.806,959
48.112,997
28,935,744
61,154.204
39,878.785
101.032,989
136.142
101.169.131
105,922,839
45.052.197
(7.263.950)
37.788.247
2,003.610
39,791,857
38,104,029
106.206.401
32.614.835
138.821.236
2.139,752
140,960.988
144,026,868
S 136,378.910
46.748.364
183.127 274
5.946,711
189,073,985
172,962,612
See accompanying notes to financial statements.
I?
KODIAK ISLAND BOROUGH
Statement of Activities
Year ended June 30, 2005
(With summarized financial information for the year ended June 30, 2004)
Functions/Programs
Expenses
Primary government:
Governmental activities:
General government
$ 3,466,289
Emergency preparedness
25,850
Community and economic development
509,680
Health and sanitation
365,072
Education, culture, and recreation
185,993
Fire services
491,172
Maintenance and operations
3,175,997
Service district maintenance
347,934
Fern Fuller trust
22,547
Education
10,207,757
Interest on long -term debt
1,101,598
Total governmental activities
19,899,889
Business -type activities:
Municipal solid waste collection and
disposal
3,362,348
Hospital facilities
1,344,987
911 services
69,178
Kodiak fisheries research center
1,878,788
Total business -t a activities
6 655 301
Program revenues
Operating
Charges for grants and Capital
services contributions grants
161,621
21,886
56,704
14,244
191,665
20,000
4b6,11U
3,141,856
1,153,333
26,721
1,566,686
18,001
1,805
75,425
142,668
2,917,160
2,917,160
Jr J,VV -
Total primary government $ 26,555,190 6,354,716 721,453 2,917,160
Component units:
School district $ 33,466,016 226,645 5,004,756 —
Totals – component units $ 33,466,016 226,645 5,004,756 —
General revenues:
Property taxes
Severance taxes
Grants and entitlements not restricted to specific programs
Investment earnings
Support from primary government
Other
Transfers
Total general revenues and transfers
Change in net assets
Net assets, beginning of year
Net assets, end of year
See accompanying notes to financial statements.
I �
13 1
1
Net (expense) revenue and changes in net assets
Primary government Component
Governmental Business -type unit school
activities activities Total district
n
(3,304,668)
- (3,304,668)
(7,849)
- (7,849)
(485,989)
- (485,989)
(289,647)
- (289,647)
(129,289)
- (129,289)
(334,260)
- (334,260)
(67,172)
- (67,172)
(327,934)
- (327,934)
(22,547)
- (22,547)
(10,207,757)
- (10,207,757)
( 618,044)
- (618,044)
(15,795,156) - (15,795,156)
Total reporting entity
2005 2004
- (3,304.668)
(2,438.531)
- (7,849)
(13,318)
- (485,989)
(421,840)
- (289,647)
(300,917)
- (129,289)
(163,921)
- (334.260)
(318,659)
- (67,172)
(241,911)
- (327,934)
(405,712)
- (22,547)
567.467
- (10,207,757)
(10,102,338)
- (618,044)
(290,876)
- (15,795,156)
(14,130,556)
14
-
(220,492)
(220,492)
(220,492)
158,649
(191,654)
(191,654)
-
(191,654)
(1,875.615)
-
(42,457)
(42,457)
-
(42,457)
21,008
-
(312,102)
(312,102)
-
(312,102)
(241,372)
-
(766,705)
(766,705)
-
(766,705)
(1,937,330)
(15,795,156)
(766,705)
(16,561,861)
-
(16,561,861)
(16,067,886)
(28.234,615)
(28,234,615)
(24,791,671)
(28,234,615)
(28,234,615)
(24,791,671)
'
9,063,729
-
9,063,729
,063,7_9
-
9,063,7..9
8,016,323
1,005,539
-
1,005,539
-
1,005,539
799,693
2,384,538
-
2,384,538
18,429,664
20,814,202
20,091,852
1,750,321
70,812
1,821,133
165
1,821,298
1,028,362
-
-
8,332,440
8,332,440
7,995,040
55,692
-
55,692
637,696
693,388
423,606
170,602
(170,602)
-
-
-
-
14,430,421
(99,790)
14,330,631
27.399,965
41,730,596
38,354,876
(1,364,735)
107,571,136
(866,495)
33,481,330
(2,231,230)
141,052,466
(834,650)
2,974,402
(3,065,880)
144,026.868
(2,504,681)
146,531,549
$ 106,206,401
32,614,835
138,821,236
2.139,752
140,960,988
144,026.868
14
1
1
KODIAK ISLAND BOROUGH
Balance Sheet
Governmental Funds
i
June 30. 2001
(With summarized
financial information
for June 30. 2004)
'
Education
Various
Schoolbond
Other
and
borough
capital
governmental
Totals
Assets
General
Facilities
health projects
projects
funds
2005
2004
Assets:
Equity in central treasury $
-
-
-
157.172
187.220
1.016.196
1360.588
1.123.592
Temporary investments
5.939.370
29.208.884
993.130
496.565
18.446.005
2.012.699
57.096.653
37.495.147
Receivables:
Accounts and other
receivables. net
27.284
237.724
12.419
1.578
20.413
25.105
324.523
1.097.188
State of Alaska
60.848
-
133.494
-
-
268.862
463.204
382.948
Federal government
-
-
-
-
-
6.355
635i
6.750
Property taxes. net of
allowance of $15.828
338.371
-
-
-
-
14.479
352.850
372.481
Severance taxes
273.391
-
-
-
-
-
273391
Land sales contracts
-
-
-
-
-
8.000
8.000
50.056
Notes receivable
-
-
-
53.374
53.374
Due from other funds
-
372.799
-
301.650
1.913.866
93.244
2.681.559
739.629
Notes receivable, due after one year
-
-
-
-
-
487.271
487.271
-
Land sales contracts, due after one year
-
-
-
-
-
34.272
34.272
Advances to other funds
-
8.090.822
-
-
-
-
8.090.822
8.421.492
,
Total $
6.639,264
37.910.229
1.139.043
956.965
20.567.504
4.019.857
71232.862
49.689.683
Liabilities and Fund Balances
f
Liabilities:
Accounts payable $
Retainages payable
346.117
-
-
-
-
-
1.050
6.670
132.391
486.228
639.781
'
Accrued compensation
-
-
22.270
22.270
22.270
and related liabilities
22.454
-
-
-
-
156
22.610
13.060
€
Customer deposits
-
-
-
-
-
1.203
1.203
678
Unearned revenues
292.595
115.500
-
-
-
599.136
1.007.231
1.045.741
Due to component unit
3.758.892
-
-
-
-
-
1.758.892
4 160 903
'
Due to other funds
406.193
20.397
1.487.276
-
-
652.193
2.566.059
654.229
Long -term interfund advances
-
-
-
Total liabilities
4.826251
135,897
1.487276
1.050
6.670
1.407.349
7.864.493
6.536.662
Fund balances:
Reserved:
Long -term interfund
-
borrowings
-
8.090.822
-
-
-
-
8.090.822
8.421.492
Unreserved:
General fund:
Designated for subsequent
year expenditures
606.323
-
-
-
-
-
606.323
768.207
Undesignated
1.206.690
-
-
-
-
-
1.206.690
1,341.289
Special revenue funds:
Designated for self - insurance
-
-
-
-
-
-
-
-
Designated for subsequent
year expenditures
-
-
-
-
-
143.676
143,676
256.860
Undesignated
-
29.683.510
-
-
-
2.414.916
32.098.426
31,536.646
'
Debt service funds:
Undesignated
-
-
(348.233)
-
-
158.409
(
19_
2, 324
f
Capital projects funds:
Undesignated
-
-
-
955,915
20.560,834
(104.493)
21.412.256
636,203
Total fund balances
1.813.013
37.774.332
(348233)
955.915
20.560.834
2.612.508
63.368.369
43.153,021
'
Total $
6.639.264
37.910.229
1.139.043
956.965
20.567.504
4.019,857
71,232.862
49.689.683
See accompanying notes to financial statements.
1
KODIAK ISLAND BOROUGH
Reconciliation of Net Assets Between the
Government -wide and Fund Financial Statements
Year ended June 30. 2005
Amount reported as fund balance on the governmental funds balance sheet
Amounts reported for governmental activities in the statement of net
assets are different because:
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
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
Accrued interest income
Note receivable
Land sales contracts
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
Bond premium
Debt issuance costs
ADEC loans
Net pension and OPEB obligation
Accrued interest expense
Compensated absences
Net assets of governmental activities
See accompanying notes to the financial statements.
S 63.368.369
75.876.951
$ 254,832
115,500
556,864
42,272 969,468
(32,965,000)
(115,509)
41,478
(88,243)
(356,897)
(351,456)
(172,760)
(34,008,387)
$ 106,206,401
16
Revenues:
Property taxes
Intergovernmental:
State sources
Federal sources
Land sale proceeds
Severance taxes
Licenses. permits. fees. and
other local revenues
Other
Investment income
Total revenues
Expenditures:
Current:
General government
Fire services
Emergency preparedness
Community and
economic development
Health and sanitation
department
Education. culture.
and recreation
Maintenance and operations
Service district maintenance
Primary and secondary education
Fern Fuller trust
Capital outlay:
Schools
General
Debt service:
Principal
Interest
Bond issuance costs
Total expenditures
Excess of revenue over
(under) expenditures
Other financing (uses) sources:
Proceeds from sale of bonds
Bond premium
Transfers in
Transfers out
Net other financing
(uses) sources
Excess (deficiency) of
revenues and other financing
sources over expenditures
and other financing uses
Fund balances. at beginning of year
Fund balances. at end of the year
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Statement of Revenues. Expenditures.
and Changes in Fund Balances
Governmental Funds
Year ended June 30. 2005
(With summarized financial information for the vear ended June 30. 2004)
17
1
I r
Education
Various
School bond
Other
and
borough
capital
governmental
Totals
General
Facilities
health
projects
projects
funds
2005
2004
$ 8.373.277
-
-
-
-
690.452
9.063.'29
8.016323
800.495
-
942.687
-
-
426.621
2.169,803
2 _.1 2 _1.4 2 _0
1.124.910
-
-
2.399.055
-
329.383
3.853.348
1.245.337
-
-
-
-
-
22.738
2 _2.738
9.206
1.005.539
-
-
-
-
-
1.005.539
799.693
161.621
-
-
540
-
530.379
692.140
764,913
-
-
747
-
-
75.094
7i.841
222.837
265.392
1.114.071
11.236
6.057
323.311
52.826
1.772.893
866.143
11.731.234
1.114.071
954.670
2.405.652
323.3,11
2.127.493
18.656.431
14.045.87
2.713.633
-
-
-
-
-
2 _.713.633
2.118.166
-
-
-
-
-
425.506
425,506
864.703
5.428
-
-
-
-
18.093
23.521
48.755
443,876
-
-
-
-
65.804
509.680
536.111
254.313
-
-
-
-
75.425
329.738
331,884
127,335
-
-
-
-
58.658
185.993
217.759
-
-
-
-
-
698.119
698.119
567.094
-
-
-
-
-
347.934
347.934
425.712
7.973.035
-
-
-
-
-
7.973.035
7.721.706
-
-
-
-
-
22.547
22.547
24.500
-
-
-
-
55.392
12.717
68.109
131.324
-
-
-
2.460.376
-
511.798
1972.174
656.423
-
-
1.784.859
-
-
-
1.784.859
1.260.167
-
-
983.195
-
-
1,571
984.766
644.046
-
43.661
-
-
43.661
-
11.5 17,620
2.811.715
2.460.376
55.392
2.238.172
19.083.275
15.548.350
213.614
1.114.071
(1.857.045)
(54.724)
267.919
(110.679)
(426.844)
(1.502.478)
-
-
-
-
20.350.000
-
20.350.000
-
-
-
118.830
-
2.760
-
121.590
-
-
-
1.356.067
216.508
-
227.637
1,800.212
3,605.614
(510.097)
(884,248)
-
(235.265)
(1.629.610)
(1.961.054)
(510.097)
(884.248)
1.474.897
216.508
20.352.760
(7,628)
20.642.192
1.644.560
(296.483)
229.823
(382.148)
161.784
20.620.679
(118,307)
20.215,348
142.082
2.109.496
37.544.509
33.915
794.131
(59.845)
1730.815
43,153.021
43.010.939
$ 1.813.013
37.774.332
(348.233)
955.915
20.560.834
2.612.508
63.368.369
43,153,021
17
1
I r
' KODIAK ISLAND BOROUGH
Reconciliation of the Statement of Revenues. Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement of Activities
Year ended June 30. 2005
Net change in fund balance — total governmental funds S 20.215.348
' 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 $ 335,985
Depreciation expense (2,765.511) (2.429.526)
Revenues in the statement of activities that do not provide current
current financial resources and are deferred in the funds:
' Change in interest income accrual (2 2.5722)
Donations (35.103) (57.675)
Revenues in the funds that were earned in a prior year and
provide current financial resources:
Land sale proceeds (7.784)
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 assets. Also. governmental funds do not
report the accrual of interest expense on debt when it is not
payable from currently available resources:
Change in interest expense accrual
Principal repayments
Bond premium
Debt issuance costs
New issuance of general obligation bonds
Some expenses reported in the statement of activities do not
require the use of current financial resources and, therefore,
are not reported as expenditures in governmental funds:
Net pension and OPEB obligation
Compensated absences
Change in net assets of go activities
See accompanying notes to financial statements.
(120.730)
1.784,859
(115.510)
41.479
(20,350,000)
(18.759.902)
(356.897)
31.701 (325.196)
$ (1.364.735)
18
KODIAK ISLAND BOROUGH
Balance Sheet
Proprietary Funds - Business -type Activities - Enterprise Funds
June 30. 2005
(With summarized financial information for June 30. 2004)
See accompanying notes to financial statements
R
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Totals
Assets
Disposal
Facilities
Center
Fund
2005
2(104
Current assets:
Equity in central treasury
$
186,993
140.271
-
32.644
359.908
373.008
Temporary investments
2,056.045
-
2,464,685
-
4.520.730
3.735.748
Accrued interest receivable
23,292
-
3.721
-
27,013
25.694
Customer receivables
314,711
-
-
-
314,711
340,641
Due from other funds
-
11.974
-
-
11,974
426.004
Accounts receivable - State of Alaska
100,000
-
-
-
100,000
100,000
Total current assets
2,681,041
152.245
2,468.406
32,644
5,33.1.336
5.001.095
Inventories
-
277.007
-
-
277,007
277,007
Capital assets, net
5,430,175
20.209,161
15,509,659
-
41.148.995
43,262.618
Total noncurrent assets
5,430,175
20.486.168
15,509.659
-
41,426.002
43.539,625
Total
$
8,111,216
20,638,413
17,978,065
32,644
46.760.338
48.540.720
Liabilities and Fund Equities
Current liabilities:
Accounts payable
$
301,910
1,971
32.187
-
336.068
308,293
Deferred revenue
-
854.444
-
-
854,444
1,287.776
Accrued compensation and
related liabilities
24,716
-
7,546
-
32,262
26,345
Other accrued liabilities
339,654
-
80,638
-
420,292
297,554
Current portion of capital
lease obligations
-
-
-
-
-
185.970
Current portion of advances
from other fund
-
57,919
290,000
-
347,919
330,670
Due to other funds
-
-
127,474
-
127.474
511,404
Total current liabilities
666,280
914,334
537,845
-
2,118,459
2,948,012
Noncurrent liabilities:
Notes payable
1,270,210
-
-
-
1,270,210
1,262,123
Capital lease obligations
-
-
-
-
-
-
Advances from other fund
-
1,432,903
6,310,000
-
7,742,903
8,090.822
Accrual for landfill closure
and postclosure
costs
3,013,931
-
-
-
3,013.931
2,758.433
Total noncurrent liabilities
4,284,141
1,432.903
6,310,000
-
12.027,044
12.111,378
Total liabilities
4,950,421
2,347,237
6,847,845
-
14,145,503
15,059,390
Fund equities:
Invested in capital assets,
net of related debt
4,159,965
20,209.161
15.509.659
-
39,878,785
41,814,525
Unrestricted
(999,170)
(1.917.985)
(4,379.439)
32,644
(7.263.950)
(8,333,195)
Total fund equities
3.160,795
18,291.176
11,130,220
32.644
32,614,835
33.481.330
Total
$
8.111.216
20.638.413
17,978.065
32,644
46.760.338
48,540.720
See accompanying notes to financial statements
R
KODIAK ISLAND BOROUGH
Statement of Revenues. Expenses,
and Changes in Fund Equity
Proprietary Funds - Business -Type Activities - Enterprise Funds
Year ended June 30. 2005
(With summarized financial information for the year ended June 30. 2004)
I See accompanying notes to financial statements.
20
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Totals
Disposal
Facilities
Center
Fund
2005
2003
Operating revenues:
Solid waste collection
5 2,184,612
-
-
-
1 ,184,612
2.251,245
Solid waste disposal
956,087
-
-
-
956.087
951.789
Rents and royalties
-
-
1,566.686
-
I 1,566.686
1.559.600
State sources - revenue sharing
-
-
-
-
-
-
Charges for services /customer charges
-
-
-
26.721
26,721
101,435
Lease income
-
1,153,333
-
-
1,153.333
792,224
Donations
-
-
-
-
-
1.305
Other
1.157
-
-
-
1,157
6.742
Total operating revenues
3,141.856
1,153,333
1,566,686
26.721
5,888,596
5.664.340
Operating expenses:
Personnel services
596.385
6,969
169.219
3,000
775,573
668,792
Employee benefits
-
-
57,098
-
57,098
45.445
Solid waste collection
I,418,830
-
-
-
1,418,830
1.324.943
Refuse disposal
355,995
-
-
-
355,995
230,639
Contracted services
207,282
-
-
-
207,282
179.939
Repairs and maintenance
35,505
19,360
-
-
54,865
309,332
Landfill closure and postelosure costs
255,498
-
-
-
255,498
246.929
Depreciation
208,330
1.238,064
793,562
-
2,239,956
2,266,361
General and administration
153,555
10,810
324,768
-
489,133
189,442
Miscellaneous
-
-
67,328
-
67328
80,774
Telephone services
-
-
-
66,178
66.178
71.427
Recycling services
73.001
-
-
-
73,001
68.506
Contributions
9,853
-
-
-
9,853
5.445
Total operating expenses
3,314,234
1,275,203
1,411.975
69,178
6.070.590
5,687,974
Operating income (loss)
(172,378)
(121,870)
154,711
(42,457)
(181,994)
(23,634)
Nonoperating revenues (expenses):
Loss on disposal of fixed assets
-
-
-
-
-
-
Contributions to the State of Alaska
-
-
-
-
-
(1 170 000)
Contributions to Providence Hospital
-
-
(130,000)
Investment income
35,631
84
35,097
-
70.812
23,977
Interest expense
(48,114)
(69.784)
(466,813)
-
(584.711)
(613,696)
Loss before transfers
(184,861)
(191,570)
(277,005)
(42,457)
(695,893)
(1,913,353)
Transfers in
-
125,000
-
-
125,000
-
Transfers out
-
(295.602)
-
-
(295,602)
(1.644,560)
Change in fund equity
(184,861)
(362,172)
(277,005)
(42,457
(866,495)
(3,557,913)
Fund equity, at beginning of year
3.345,656
18.653.348
11,407,225
75,101
33,481,330
37,039,243
Fund equity, at end of year
S 3,160,795
18.291,176
11,130,220
32.644
32.614,835
33,481,330
I See accompanying notes to financial statements.
20
KODIAK ISLAND BOROUGH
Statement of Cash Flows
Proprietary Funds - Business -Type Activities - Enterprise Funds
Year ended June 30. 2005
( With summarized financial information for the vear ended June 30. 2004 )
Cash flows from operating activities
Cash received from customers
Payments to suppliers
Payments to employees
Internal activity - payments to /from other funds
Net cash provided (used) by
operating activities
Cash flows from noncapital financing activities:
Borrowing (repayment to) from central treasury
Transfers in
Transfers out
Net cash provided (used) by
noncapital financing activities
Cash flows from capital and related
financing activities:
Acquisition and construction of capital assets
Interest paid on notes payable, capital leases,
and interfund borrowings
Proceeds from long -term interfund borrowing
Principal payments on long -term
interfund borrowing
Proceeds from issuance of notes payable
Principal payments on capital lease obligation
Net cash provided (used) by capital and
related financing activities
Cash flows from investing activities:
Interest and dividends on investments
Net increase in investments
Net cash provided (used) by
investing activities
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents, at beginning of year
Cash and cash equivalents, at the end of year
See accompanying notes to financial statements.
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonma,jor
Collection and
Hospital
Research
Enterprise
Totals
Disposal
Facilities
Center
Fund
2005
2004
S 3.130.568
720,000
1.574,097
63.939
5.488.604
5,534.065
(2,086.347)
(28.358)
(395.166)
(137.605)
(2.647.476)
(2,353,890)
(589.076)
(6.969)
(227.709)
(3.000)
(826.754)
(714.238)
321.420
(210.882)
3.680
-
114,218
(435.418)
776.565
473.791
954,902
(76.666)
2,128,592
'_.030.519
(96.092)
-
11.974
-
(84.118)
96.092
-
125.000
-
-
125.000
-
-
(295,602)
-
-
(295.602)
(1.644.560)
(96,092)
(170.602)
11.974
-
(
(1,548.468)
(103.451)
(22,882)
-
-
(126.333)
(2 72.784)
-
(69,784)
(466,813)
-
(536.597)
(566,132)
-
-
-
-
-
1.600.000
-
(55.670)
(275.000)
-
(330.670)
(308,508)
8.087
-
-
-
8.087
20.869
-
(185.970)
-
-
(185.970)
(316.388)
(95.364)
(334,306)
(741,813)
-
(1.171.483)
157.057
12,339
84
57,070
-
69,493
21,516
(410.455)
-
(374.527)
-
(784.983)
(673,292)
(398.116)
84
(317.457)
-
(715.489)
(650.776)
186.993
(31.033)
(92,394)
(76.666)
(13.100)
(11,668)
-
171.304
92,394
109,310
373,008
384.676
S 186.993
140,271
-
32.644
359,908
373.008
I �
I -
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Statement of Cash Flows
Proprietary
Funds – Business -type Activities –
Enterprise Funds
Near ended June 30. 2005
( With summarized
financial information for the sear
ended June 30. 2004)
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and Hospital
Research
Enterprise
Totals
Disposal Facilities
Center
Fund
200
2M4
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss)
$ (172.378) (121,870)
154.711
(42.457)
081.9941
(23.634)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation
208.330 1,238.064
793.562
—
2.239,956
2.266.361
Changes in assets and liabilities that
provided (used) cash:
Customer receivables
(11.288) —
—
37.218
25.030
)62.804)
Due to /from other funds
321,420 (210.882)
3.680
—
114.218
(435.418)
Accounts payable
100.461 1.811
(3,070)
(71.427)
27.775
33.530
Deferred revenues
— (433332)
—
—
(433.332)
(67.471)
Accrual for landfill closure and
postclosure costs
255,498 —
—
—
255,498
246.929
Accrued compensation and
related liabilities
7.309 —
(1.392)
—
5,917
(1)
Other accrued liabilities
67.213 —
7.411
—
74.624
73.027
Net cash provided (used) by
operating activities
$ 776.56 473.791
954.9
(76.66
2.128.5
'_.030.5
Noncash capital and related financing activities:
Interest
$ 48.114 —
—
—
48.114
47.504
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2005
(1) Summary of Significant Accounting Policies
(a) Reporting Entity
The Kodiak Island Borough (the Borough), Alaska, was organized to perform the municipal duties
allowed by Alaska Statutes and as directed by its residents. As required by accounting principles
generally accepted in the United States of America, these financial statements present the
government and its component unit, an entity for which the government is considered to be
financially accountable. The discretely presented component unit is reported in a separate column in
the government —wide financial statements to emphasize it is legally separate from the government.
The Borough reviewed its relationship with other organizations and determined that the following
organization is a component unit.
Discretely Presented Component Unit
The Borough has delegated the operating responsibility for public education to the Kodiak Island
Borough School District (School District). In accordance with statutes, the Borough retains
ownership of the education related fixed assets and incurs the debt, if necessary, to finance the
acquisition and construction of school facilities. The Borough Assembly approves the total annual
budget of the School District and may, during the year, increase or decrease the total appropriation.
Complete financial statements for the component unit may be obtained at the entity's administrative
offices for the Kodiak Island Borough School District.
Kodiak Island Borough School District
722 Mill Bay Road
Kodiak, Alaska 99615
(b) Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the statement of
activities) report information on all of the activities of the primary government and its component
unit. 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 fees and
charges for support. Likewise, the primary government is reported separately from the legally
separate component unit 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 properly included
among program revenues are reported instead as general revenues.
23 (Continued)
J
1
'J
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds, if applicable. are reported as
separate columns in the fund financial statements.
(c) Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary 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.
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 except for grant revenues which are recognized when
the related expenditure is incurred irrespective of when the cash is received. Expenditures generally
are recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
Property taxes 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 current fiscal period. All other
revenue items are considered to be measurable and available only when cash is received by the
government.
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 facilities fund accounts for the proceeds from the sale of Shuyak Island. The single most
1 important goal is to preserve the principal of the fund. Interest earnings, after inflation proofing, can
be used for debt service, building insurance and capital projects.
The debt service — education and health fund was established to finance and account for the payment
of interest and principal on all general obligation debts, serial and term, other than that payable
exclusively from special assessments and revenue debt issued for and serviced by a government
enterprise fund.
The various borough projects fiuid accounts for general government construction projects not
accounted for in other funds.
1 24 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2005
The school bond capital projects ficnd accounts for the construction and major maintenance activities
for the Borough's educational facilities funded by school bonds.
The government reports the following major proprietary funds:
The municipal solid waste collection and disposal firnd accounts for the collection and disposal of
solid waste and recycling services for the Kodiak Island Borough.
The hospital facilities fiend accounts for rents on the Borough -owned hospital hospital — related state
revenue sharing and other hospital— related revenue. In turn, it purchases hospital equipment and
makes debt service payments on hospital— related debt.
The Kodiak Fisheries Research Center fund accounts for rents and expenses on the Borough -owned
Kodiak Fisheries Research Center. The three tenants, NOAA, Alaska Department of Fish & Game
and University of Alaska, Fairbanks, pay lease funds to participate in this multi- agency research
facility committed to the preservation of the North Pacific marine ecosystem and resources.
Private - sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government -wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent
private- sector guidance for their business -type activities and enterprise funds, subject to this same
limitation. The government has elected not to follow subsequent private- sector guidance.
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 various 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 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 and lease revenues.
Operating expenses for enterprise funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition
are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy to
use restricted resources first. then unrestricted resources as they are needed.
25 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
(d) Assets, Liabilities, and Fund Equity
Cash and Investments
Cash balances of most Borough funds are pooled in a central treasury. Each fund type's portion of
this pool is displayed on the balance sheet as "Equity in central treasury." In addition. investments
are separately held by several of the Borough's funds. Investments are carried at fair value, as
determined by quoted market prices.
The Alaska Municipal League Investment Pool ( AMLIP) is considered to be an external investment
pool as defined by GASB Statement No. 31. AMLIP is not SEC- registered. Alaska Statute 37.23
establishes regulatory oversight of the pool. The law sets forth numerous requirements regarding
1 authorized investments and reporting. The pool is incorporated in the State of Alaska as a nonprofit
corporation and reports to its board of directors. Alaska Statute 37.23.050 requires the retention of an
investment manager.
The manager is required to produce monthly disclosure statements to the pool. The pool has also
retained an investment advisor to ensure compliance with investment policies. All participation in
the pool is voluntary. The pool must maintain a dollar- weighted average maturity of 90 days or less,
' and only purchase instruments having remaining maturities of 397 days or less. On a monthly basis,
the investments in the pool are reviewed for fair value by an independent pricing service.
1 All highly liquid investments, excluding restricted assets, with original maturities of 90 days or less
are considered to be cash equivalents. For purposes of the statements of cash flows, equity in central
treasury held by enterprise funds is treated as cash equivalents.
Investments for the government, as well as the component unit, are reported at fair value, as
determined by quoted market prices. The reported value of the pool is the same as the fair value of
the pool shares.
Receivables and Payables
Activity between funds that is representative of lending /borrowing arrangements outstanding at the
end of the fiscal year is referred to as either "due to /from other funds" (i.e., the current portion of
interfund loans) or "advances to /from other funds" (i.e., the noncurrent portion of interfund loans).
All other outstanding balances between funds are reported as "due to /from other funds." Any
residual balances outstanding between the governmental activities and business -type activities are
reported in the government -wide financial statements as "internal balances." Internal balances used
to acquire capital assets are eliminated from the invested in capital assets, net of related debt, portion
of net assets.
Advances between funds, as reported in the fund financial statements, are offset by a fund balance
reserve account in applicable governmental funds to indicate that they are not available for
appropriation and are not expendable available financial resources.
26 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2005
Inventories and Prepaid Items
Expendable operating supplies of the Borough are accounted for using the purchase method. There
are no significant amounts of such inventories on hand at year —end. All of the hospital facilities fund
inventory is assigned to Providence as of April 21, 1997 which, by the terms of the lease agreement
for the hospital facilities (see note 9), are required to be returned to the Borough at the termination of
the lease in at least equal value.
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.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, street
lights, and similar items including those acquired prior to fiscal years ended after June 30, 1980), are
reported in the applicable governmental or business -type 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 market 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 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. There was no interest capitalized during the year.
Property, plant, and equipment of the primary government are depreciated using the straight —line
method over the following estimated useful lives:
Buildings and improvements 1040 years
Improvements other than buildings 10 -15 years
Equipment 5 -10 years
Infrastructure 40 years
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. 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.
27 (Continued)
I KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
— Long -Term Obligations
11 In the government -wide financial statements, long -term debt and other long -term obligations are
reported as liabilities in the applicable governmental activities, business -type activities, or
proprietary fund type balance sheet. Bond premiums and discounts, as well as issuance costs, 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 reported as
deferred charges and amortized over the term of the related debt.
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 received 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. Interest on long -term obligations is recorded as an expenditure when due.
' Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for amounts
' that are not available for appropriation or are legally restricted by outside parties for use for a
specific purpose. Designations of fund balance represent tentative management plans that are subject
to change.
(e) Revenues, Expenditures, and Expenses
Property Taxes
! Property taxes are based on the assessed value of taxable property as of January 1. Pursuant to
Alaska Statute 29.45.240, the Borough establishes the mill rate on or before June 15th. Tax bills are
then mailed on or before July 1st.
Taxes are due when billed and generally become delinquent on or after October 15th. The Borough
code also provides for split payments. If a taxpayer avails himself of this provision. one -half must be
paid on or before August 15th and the remainder becomes due on or before November 15th (in lieu
of October 15th). Borough property tax revenues are recognized in the fiscal year in which they
become measurable and available, which is generally the year following the year the tax bills are
mailed.
All taxes are delinquent on November 16th, and a tax foreclosure process may commence as outlined
in Alaska Statutes Title 29. Briefly, this entails the petition for Judgment of Foreclosure signed by
the District Court Judge and the publication of all delinquent taxes in the local newspaper for four
consecutive weeks.
Real property tax liens are enforced by one general foreclosure proceeding against the delinquent
properties.
28 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2005
Taxes
Severance T a
Severance taxes are based on the amount and value of natural resources severed from the
environment. Types of resources taxed include seafood, gravel and mineral resources. and timber.
Severance tax returns are sent to appropriate companies (as determined by the Borough Assessor)
and are returned to the Borough Finance Department. The returns are filed quarterly. and are due by
the end of the month following the quarter's end. Borough severance tax revenues are recognized in
the fiscal year in which they become measurable and available.
Intergovernmental Revenue , 3
State - shared revenues, safe communities, State - education related entitlement programs and
State - levied taxes, the proceeds of which are distributed to local governments, are recorded in the '
fiscal year to which they relate, including accrual at year —end if final payments due are measurable
and received within approximately two months after year —end. E
State of Alaska and federal government cost reimbursable grants and contracts are recorded to the
extent of allowable expenditures in the period in which the expenditures were incurred.
Operating and Nonoperating Revenue
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result form providing services and producing and delivering goods
in connection with a proprietary fund's principal ongoing operations. The principal operating
revenues of the municipal solid waste collection and disposal fund and 911 services fund are charges
to customers for services. The principal operating revenues of the hospital facilities fund and the
Kodiak Fisheries Research Center fund are rents from customers. Operating expenses for proprietary
funds include costs of services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
Revenue from Investments and Property
Amounts earned on investment of available cash balances and the rental of building facilities are '
recorded in the period to which they relate, including accrual at year —end of the balance due, and
unrealized gains and losses on investments held at fiscal year —end.
Land Sales Proceeds and Other Local Revenues '
Amounts received pursuant to land sale contracts are recorded on the accrual basis.
Other local revenues are recorded on a basis consistent with their nature in relation to measurement '
and availability standards.
(f) Cash Flows ,
All highly liquid investments. excluding restricted assets. with original maturities of three months or
less are considered cash equivalents for purposes of the statement of cash flows.
29 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
(g) Use of Estimates
Preparation of financial statements in accordance with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
amounts reported in these financial statements. Actual results may differ from the estimates.
Significant estimates include the allowance for doubtful accounts, the useful lives of assets and
related accumulated depreciation, and accrued landfill closure and post - closure care costs.
(2) Stewardship, Compliance, and Accountability
(a) Excess of Expenditures /Expenses over Appropriations /Budgets
General Fund
The following department expenditures exceeded their appropriations:
Department Excess
Community development $ 4,792
Building official 7.602
General and administration 27,701
School district support 85,625
Management information systems 24,172
$ 149,892
Enterprise Funds
The following fund expenses exceeded their budget:
Fund
Municipal Solid Waste $
Collection and Disposal
911 Services 178
$ 175.712
Excess
175,534
30 (Continued,)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
Special Revenue Funds
The following fund expenses exceeded their budget:
Fund
Kodiak Airport Fire District
Women's Bay Road Service Area
Bay View Road Service Area
Woodland Acres Street Light
Service Area
Kodiak Arts Council
Trinity Acres Paving
Excess
$ 3.296
1,889
625
475
1.748
194,593
$ 202,626
(b) Deficit Fund Equity
The significant individual fund deficits at June 30, 2005 are as follows:
Special Revenue Funds:
Trinity Acres Paving $ 216,733
Capital Project Funds:
State Capital Grants 104.493
The deficit in the Trinity Acres Paving Fund will be funded by a special assessment beginning in
2006. Management intends to fund the State Capital Grants Fund deficit in fiscal year 2006 through
transfers.
(3) Cash and Investments
As of June 30, 2005, the Borough had the following investments:
Investment ty
U.S. agency securities:
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Alaska Municipal League Investment Pool
t
31
(Continued)
Investment maturities (in years)
Fair
Less
value
than 1
1 to 5 5 to 10
$ 2,979,390
2,979,390
— —
17.930,350
7,979,710
9,950.640 —
7,936,800
4,936,800
3.000,000 —
21,906,750
14.904,520
7,002 230 —
10,864,093
10,671.936
— 192,157
$ 61,617,383
41,472,356
19,952,870 192,157
t
31
(Continued)
I
Ci
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
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.
Credit Risk
Statutes authorize the Borough to invest in obligations of the United States, the State of Alaska and its
political subdivisions, savings accounts, certificates of deposit, bankers' acceptances. repurchase
agreements, and such other legal security instruments. The Borough Code requires all investments to be
collateralized and/or insured.
At June 30, 2005, the Borough's U.S. agencies bonds were rated AAA by Standard & Poor's and Fitch
Ratings, and Aaa by Moody's Investor Service. At June 30, 2005, the Borough's investment in the Alaska
Municipal League Investment Pool was unrated.
Concentration of Credit Risk
The Borough places no limit on the amount the Borough may invest in any one issuer. At June 30, 2005,
' the Borough had 82 percent of its investments in U.S. government agency securities.
Custodial Credit Risk — Deposits
1 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 requires all deposits to be insured or collateralized. At June 30, 2005, the
carrying amount of the Borough deposits was $1,772,694 and the corresponding bank balance was
$1,911,223. The Federal Deposit Insurance Corporation insures $100,000 of the Borough's bank balance.
Government and Agency Obligations and General Obligation Bonds of a Municipality collateralize the
remaining $1,811,223. Collateral, in the amount of $11,354,899, is held by the Bank of New York, the
pledging financial institution's agent, in the Borough's name.
' 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, 2005.
t
L
(4) Annual Appropriation to the School District
An annual appropriation is made to the School District in order to provide the School District with total
resources in a fiscal year equal in amount to budgeted expenditures.
In addition to the annual appropriation. the Borough provides the School District, without charge, general
liability and property insurance, data processing services, the annual independent audit, mental health
services, and grounds maintenance services.
32 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
(5) Capital Assets
Capital asset activity for the year —ended June 30, 2005 was as follows:
Beginning
Ending
balance
Increase Decrease
balance
Governmental activities:
Capital assets, not being
depreciated:
Land
$ 23,187,184
— —
23,187,184
Construction
work -in- progress
3,547,859
335,985 —
3,883,844
Total
26,735,043
335,985 —
27,071,028
Capital assets, being depreciated:
Buildings and improvements
90,579,601
— —
90.579,601
Improvements other than
buildings
3,964,683
— —
3,964,683
Equipment
2,002,568
— —
2,002,568
Infrastructure
5,762,722
— —
5,762,722
Total
102,309,574
— —
102,309,574
Less accumulated depreciation for:
Buildings and improvements
43,476,435
2,272,518 —
45,748',953
Improvements other than
buildings
2,269,483
183,959 —
2,453,442
Equipment
1,501,442
164,965 —
1,666,407
Infrastructure
3,490,780
144,069 —
3,634,849
Total
50,738,140
2,765,511 —
53,503,651
Total capital assets
being depreciated
51,571,434
(2,765,511) —
48,805,923
Total governmental
activities, net
$ 78,306,477
(2,429,526) —
75,876,951
33 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
34 (Continued)
Beginning
Ending
balance
Increase Decrease
balance
Business -type activities:
Municipal solid waste collection
and disposal fund:
Capital assets, not
being depreciated:
Land $
1,651,248
— —
1.651,248
Construction work -
in- process
22.358
67,403 —
89,761
Total
1,673,606
67.403 —
1,741.009
Capital assets, being depreciated:
Unclassified utility plant in
service
2,178,733
— —
2,178,733
Improvements other than
buildings
2,288,438
— —
2.288,438
Machinery and equipment
1,277,296
36,048 —
1,313,344
Total
5,744,467
36,048 —
5,780,515
Less accumulated depreciation for:
Unclassified utility plant in
service
763,487
47,531 —
811,018
Improvements other than
buildings
216,886
65,976 —
282,862
Machinery and equipment
902,646
94.823 —
997,469
Total
1,883,019
208,330 —
2,091,349
Total capital assets,
being depreciated, net
3,861,448
(172,282) —
3,689,166
Total municipal solid
waste collection
and disposal fund, net $
5.535.054
(104,879) —
5.430.175
34 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
35 (Continued)
Beginning
Ending
balance
Increase
Decrease balance
Hospital facilities fund:
Capital assets, not being depreciated:
Artwork
$
16,091
—
— 16.091
Land
10,251
—
— 10,251
Construction work -in- process
78,746
22,882
— 101.628
Total
105,088
22,882
— 127.970
Capital assets, being depreciated:
Buildings
27,131,043
—
— 27,131.043
Improvements other than
buildings
401,046
—
— 401,046
Machinery and equipment
4,831,961
—
— 4,831.961
Total
32,364,050
—
— 32.364.050
Less accumulated depreciation for:
Buildings
7,400,553
875,107
— 8,275,660
Improvements other than
buildings
87,046
(15,895)
— 71,151
Machinery and equipment
3,557,196
378,852
— 3,936.048
Total
11,044,795
1,238,064
— 12,282.859
Total hospital facilities
fund, net
$
21,424,343
(1,215,182)
— 20,209.161
Kodiak Fisheries Research Center Fund
Capital assets, being depreciated:
Buildings
$
17,840,410
—
— 17,840,410
Improvements other than buildings
1,021,998
—
— 1,021,998
Machinery and equipment
1,157,540
—
— 1,157,540
Total
20,019,948
—
— 20,019,948
Less accumulated depreciation for:
Buildings
2,971.481
594,840
— 3,566,321
Improvements other than buildings
170,334
34,067
— 204,401
Machinery and equipment
574.912
164,655
— 739,567
Total
3.716,727
793,562
— 4,510.289
Total Kodiak Fisheries
Research Center Fund, net
$
16,303,221
(793.562)
— 15,509.659
35 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
Total business -type activities:
Capital assets, not being
depreciated:
Artwork
Land
Construction work -in- process
Total
Capital assets, being depreciated:
Unclassified utility plant in
service
Buildings
Improvements other than
buildings
Machinery and equipment
Total
Less accumulated depreciation for:
Unclassified utility plant in
service
Buildings
Improvements other than
buildings
Machinery and equipment
Total
Total capital assets
being depreciated, net
Total business -type
activities, net
Beginning
balance
Decrease
Ending
$ 16,091
—
— 16.091
1.661.499
—
— 1,661.499
101,104
90.285
— 191.389
1.778,694
90.285
— 1,868.979
2,178,733
—
— 2,178.733
44,971.454
—
— 44,971,454
3,711,482
—
— 3,711,482
7,266.797
36.048
— 7.302.845
58,128,466
36,048
— 58,164.514
763.487
113,507
— 876,994
10,372,034
1,469,947
— 11,841.981
474,266
18,172
— 492,438
5,034,755
638,330
— 5,673,085
16,644,542
2,239.956
— 18,884.498
41,483,924 (2,203.908)
39,280.016
$ 43,262.618 (2,113,623) — 41,148,995
36 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
Depreciation expense was charged to the departments and functions of the primary government as follows:
Governmental activities:
General government
$ 427,460
School district support
2,234,722
Fire services
65,666
Health and sanitation
35,334
Emergency preparedness
2,329
Total — governmental
activities
2,765,511
Business -type activities:
Municipal solid waste collection and
disposal
208,330
Hospital facilities
1,238,064
Kodiak fisheries research center
793,562
Total — business -type
activities
2,239,956
Total
$ 5,005,467
Expenditures qualify for capitalization as a capital asset if the total cost is $5,000 or more, the asset will
last longer than one year, and the asset is not consumable. Improvements to an existing asset that increase
the life or value of that asset also qualify for capitalization, and are added to the carrying amount of the
original asset. All capital assets are depreciated over the estimated remaining useful life of the asset on a
straight -line basis.
37 (Continued)
I I
r KODIAK ISLAND BOROUGH
Notes to Financial Statements
I June 30. 2005
(6) Interfund Receivables, Payables and Transfers
(a) Interfund Receivables and Payables
Interfund receivables and payables at June 30, 2005 consisted of the balances of short-term interfund
loans all of which are expected to be paid within one year. A summary of interfund receivables and
payables at June 30, 2005, is as follows:
1 38 (Continued)
Receivable
Pavable
General fund
$ —
406,193
Facilities fund
372,799
20.397
Education and health fund
—
1,487,276
Various borough projects fund
301,650
—
School bond capital projects fund
1,913,866
Nonmajor governmental funds
93,244
652,193
Major enterprise funds:
Hospital Enterprise fund
11,974
—
Kodiak Fisheries Research Center fund
—
127,474
$ 2,693,533
2.693,533
'
(b) Long -Term Interfund Borrowings
In October 1997 the Facilities Special Revenue Fund loaned $8,000,000 to the
Kodiak Fisheries
Research Center Enterprise Fund. The loan
from the Facilities Special Revenue Fund is accounted
for as a long -term interfund advance, while the liability in the Kodiak Fisheries Research Center
'
Enterprise Fund is accounted for as a long -term interfund borrowing. The advance
bears interest at
7 %, and the scheduled payments for the next
five fiscal years and thereafter are as follows:
'j
Principal Interest
Total
Year ending June 30:
2006 $
290,000 451,850
741,850
2007
315,000 430,675
745,675
2008
335,000 407,925
742,925
2009
360,000 383,600
743,600
2010
385,000 357,525
742,525
2011 -2015
2,360,000 1,329,470
3.689,470
2016 -2019
2.555,000 372,925
2,927,925
r
$
6,600,000 3,733,970
10,333,970
1 38 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2005
In July 2003, the Facilities Special Revenues Fund loaned $1,600,000 to the Hospital Fund in order
to help fund current operations. The loan from the Facilities Special Revenue Fund is accounted for
as a long -term interfund advance, while the liability in the Hospital Facilities Enterprise Fund is
accounted for as a long -term interfund borrowing. The advance bears interest at 4%, and the
scheduled payments for the next five fiscal years and thereafter are as follows:
Principal Interest Total
Year ending June 30:
2006
$ 57,919
59,059
116,978
2007
60,259
56,719
116,978
2008
62,693
54,285
116,978
2009
65,226
51,752
116,978
2010
67,861
49,117
116,978
2011 -2015
382,714
202,178
584,892
2016 -2020
466,526
118,366
584,892
2021 -2024
327,624
23,312
350,936
-
$ 1,490,822
614,788
2,105,610
(c) Transfers
Interfund transfers have been made in accordance with budget ordinances.
Funds are transferred from one fund to support expenditures of other funds in accordance with the
authority established for the individual fund. Transfers between fund types during the year -ended
June 30, 2005 were as follows:
Fund Types:
General fund
Facility fund
Nonmajor governmental
funds
Major enterprise fund:
Hospital
Total transfers
39 (Continued) I
Transfers in
Education
Various
Nonmajor
Hospital
and health
Borough
govern -
Transfers
Enterprise
debt service
projects
mental
out
fund
fund
fund
funds
$ 510,097
-
510,097
-
-
884.248
125,000
550,368
-
208.880
235,265
-
-
216,508
18,757
295.602
-
295,602
-
-
$ 1,925.212
125,000
1,356,067
216.508
227.637
39 (Continued) I
III
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
A summary of significant transfers are as follows:
• The General Fund transferred $510,097 to the Debt Service Fund to pay for debt service on
general government debt.
• The Facilities Special Revenue Fund transferred $208,880 to the Building and Grounds
Special Revenue Fund to pay for building insurance.
• The Facilities Special Revenue Fund transferred $550,368 to the Debt Service Fund for debt
service on hospital bonds.
• The Facilities Special Revenue Fund transferred $125,000 to the Hospital Enterprise Fund for
the interest earned on sale of Shuyak Island.
• The Hospital Enterprise Fund transferred $295,602 to the Debt Service Fund to pay for debt
service on hospital — related debt.
1 40 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
(7) Long Term Debt
(a) General Obligation Bonds and other debt
The Borough issues general obligation bonds and other debt to provide funds for the acquisition and construction of major capital facilities
General obligation bonds are direct oblieations and pledge the full faith and credit of the Borough. General obligation bonds and other debt
currently outstanding are as follows:
Type of debt
General obligation
bonds - 1998 Series
General obligation
bonds - 2000 E Series
General obligation
bonds - 2000 F Series
General Obligation
bonds - 2003 A Series
General obligation
bonds - 2004 A Series
Interest
Rates Dates Issue date
3.25- 4.30 8 /15 -2/15 12/22/1998
4.75 -5.0% 8/1-2/1 12/12 /2000
6.9 -9.0% 8/1 -2/1 12/12/2000
2.00 - 2.625% 8/15 -2/15 4/9/2003
4.0 -5.0 % 1/1-7/1 7/21/2004
Maturity
Principal
payments
dates
Dates
Amount
2/15/2014
2/15/2006 S
60.000
2/15/2007
60.000
211512008
1.150.000
2/15/2009
1 'OO.O(1O
2/15/2010
1.2 50.(X)O
2/15/2011
1.305,000
2/15/2012
1.360.000
211512013
1.420.000
2/15/2014
1.480.000
9 .285.000
2/1/2011
2/l/2006
145.000
2/l/
150.000
2/l/2008
160.000
2/l/2009
165.000
2/1/2010
175.000
2/1/2011
180.000
975.000
2/1/2011
2/l/2006
110.000
2/l/2007
120.000
2/l/2008
130.000
2/l/2009
140.000
2/1/2010
150.000
2/1/2011
160.000
810.000
8/15/2007
2/15/2006
1.005.000
2/15/2007
1.030.000
2.035.000
7/1/2024
7/l/2006
310.000
7/1/2007
325.000
7/1/2008
340.000
7/1/2009
350.000
7/1/2010
365.000
7/1/2011
385.000
7/1/2012
400.000
7/1/2013
415,000
7/1/2014
435.000
7/1/2015
450.000
7/1/2016
470.000
7/1/2017
485.000
7/1/2018
510.000
7/1/2019
530.000
7/1/2020
555.000
7/l/2021
580.000
7/1/2022
605.000
7/1/2023
635.000
7/1/2024
665.000
8.810.000
41 I(lmtinuedl
i
i
i
i
i
I�
I�
i
i
i
Balance at
Authorized Prior years June 30,
Fiscal vear Amount Retired 2004
1999 9.740.000 9.740.000 400.000 9.340.000
Balance at
Retired/ June 30,
Issued Refunded 2005
55.000 9.285.000
2001
1.485.000 1.485.000
375.000 1.110.000 — 135,000
975.000
2001
1.175.000 1.175.000
360.000 915.000 — 105.000
810.000
2003
3.075.000 3.075.000
55.000 3.020.000 — 985.000
2.035.000
3004
9.300.000
— 9.300.001 490.000
8.810.000
4 2 (Continued i
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
Type of debt
General obligation
bonds - 2004 B Series
ADEC loans
Clean water - Karluk
Interest
Rates Dates
3.0 -5.0 5/1 -11 /1
3.92 -4.05% **
Maturity
Principal payments
Issue date dates
Dates
Amount
12/1/3004 11/1/2024
11/112005 S
180.000
1!/1/2006
410.000
ll /l/2007
430.000
11/!/2008
435.000
l l / 1 /2009
445.000
11/1/2010
460.000
11/1/2011
475.000
11/1/2012
490.000
11/1/2013
510.000
11/1/2014
530.000
11/1/3015
550.000
11/1/3016
570.000
11/1/3017
595.000
11/1/2018
630.000
11/1/3019
650.000
ll/l/2020
675.000
11/1/2021
705.000
ll/l/2022
740.000
11/1/2033
775.000
11/1/2024
815.000
11.050.000
** **
6/l/2006
4.553
6/1/2007
4.667
6/1/2008
4.784
6/1/2009
4.903
6/1/2010
5.026
6/1/2011
5.152
6/1/2012
5.280
6/1/2013
5.412
6/1/2014
5.548
6/1/2015
5.686
6/1/2016
5.829
6/1/3017
5.974
6/1/2018
6.124
6/1/3019
6.277
6/1/2020
6.434
6/1/2021
6.594
88.243
$
33.053.243
* Interest free unless delinquent. the 7% plus fees and penalties.
** These loans represent State of Alaska financial assistance programs. for which no payment schedules will be finalized or principal payments made. until
the plans and specifications for the projects funded have been completed. The loans are in the amount of $350.000 and $50.000 and are to be repaid
from general fund revenues of the Borough. Interest begins accruing at the stated rates from the date of each individual disbursement of loan proceeds to
the Borough.
41
Authorized Prior years
F iscal year Amount Issued Retired
2004 11.050.000
Balance at Balance at
June 30, Retired/ June 30,
2004 Issued Refunded 2005
11.050.000 — 11.050.000
1998 400.000 97.019 4334 93,685 — 4.442 88.243
$ 3 15.572.019 1.0 94. 33 4 14.477.685 20.350.000 1.774.442 33,053 243
44
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2005
The annual requirements to amortize all general obligation bonded debt and the ADEC loan payable
outstanding as of June 30, 2005 are as follows:
There were no amounts available in the debt service funds to service the general obligation bonds.
There are a number of limitations and restrictions contained in the various bond indentures. The
Borough is in compliance with all significant limitations and restrictions.
(d) Note Payable
As of June 30, 2005, the Borough had the following note payable outstanding in the enterprise funds:
Note payable to Alaska Department of Environmental Conservation
(ADEQ, to be paid within 20 years at 3.8% interest, terms to be
negotiated with the first loan payment due one year following
substantial completion and initiation of operation of the facility $
(e) Solid Waste Landfill Closure and Postclosure Care Costs
1,270,210 1
State and federal laws and regulations require that the Kodiak Island Borough place a final cover on
its landfill when closed and perform certain maintenance for a number of years after closure. In
addition to operating expenses related to current activities of the landfill, an expense provision and
related liability are recognized based on the future closure and postclosure care costs that will be
incurred based on the date the landfill no longer accepts waste. The recognition of these landfill
closure and postclosure care costs is based on the amount of the landfill used during the year. The
estimated liability of landfill closure and postclosure care costs is $3,013,931 as of June 30, 2005,
which is based on 82 usage (filled) of the landfill. The landfill is estimated to be filled and
unusable by the year 2020. Of the total liability at June 30, 2005, an increase of $255,498 was
45 (Continued)
i�
C
General
ADEC
obligation
loan payable
Interest
Total
Year ending June 30:
2006
$ 1,810,000
4,553
1,358407
1,814,553
2007
2,095,000
4,667
1,333,133
2,099,667
2008
2,200,000
4,784
1,261,787
2,204.784
2009
2,290,000
4,903
1,168,103
2,294,903
2010 -2014
11,860,000
26,418
4,336,841
11,886,418
2015 -2019
5,310,000
29,890
2,438,514
5,339,890
2020 -2024
6,585,000
13,028
1,172,364
6,598,028
2025 -2026
815.000
—
40,750
815,000
$ 32,965,000
88,243
13,109.899
33,053,243
There were no amounts available in the debt service funds to service the general obligation bonds.
There are a number of limitations and restrictions contained in the various bond indentures. The
Borough is in compliance with all significant limitations and restrictions.
(d) Note Payable
As of June 30, 2005, the Borough had the following note payable outstanding in the enterprise funds:
Note payable to Alaska Department of Environmental Conservation
(ADEQ, to be paid within 20 years at 3.8% interest, terms to be
negotiated with the first loan payment due one year following
substantial completion and initiation of operation of the facility $
(e) Solid Waste Landfill Closure and Postclosure Care Costs
1,270,210 1
State and federal laws and regulations require that the Kodiak Island Borough place a final cover on
its landfill when closed and perform certain maintenance for a number of years after closure. In
addition to operating expenses related to current activities of the landfill, an expense provision and
related liability are recognized based on the future closure and postclosure care costs that will be
incurred based on the date the landfill no longer accepts waste. The recognition of these landfill
closure and postclosure care costs is based on the amount of the landfill used during the year. The
estimated liability of landfill closure and postclosure care costs is $3,013,931 as of June 30, 2005,
which is based on 82 usage (filled) of the landfill. The landfill is estimated to be filled and
unusable by the year 2020. Of the total liability at June 30, 2005, an increase of $255,498 was
45 (Continued)
i�
C
' KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
' recorded in the current ear based on current year usage and changes in estimates. y g g a An estimated
additional $661,590 will be recognized as closure and postclosure care expenses between the date of
1 the balance sheet and the date the landfill is expected to be filled to capacity. The estimated total
current cost of the landfill closure and postclosure care of $3,675,521 is based on the amount that
would be paid if the landfill were closed as of June 30, 2005. However, the actual cost of closure and
' postclosure care may be higher due to inflation, changes in technology. or changes in landfill laws
and regulations.
The Kodiak Island Borough is required by state and federal laws and regulations to make annual
contributions to finance closure and postclosure care. The Kodiak Island Borough complies with
these requirements by annually recording the liability based on the estimates provided by the Kodiak
' Island Borough's Engineering/Facilities Director. It is anticipated that future inflation costs and
additional costs that might arise from changes in postclosure requirements, due to changes in
technology or more rigorous environmental regulations, for example, will be financed primarily by
' charges to future landfill users and secondarily by taxpayers.
I I
7
46 (Continued)
KODIAK ISLAND BOROUGH '
Notes to Financial Statements
June 30, 2005
(f) Changes in Long -Term Liabilities
Long -term liability activity for the year —ended
June 30,
2005 was as follows:
Balance
Balance
June 30,
June 30,
Due within
2004
Additions
Reductions
2005
one year
Governmental activities:
Bonds payable:
General obligation bonds
$
14,385,000
20,350,000
1,770,000
32,965,000
1.810.000
Bond premium
—
121,589
6,080
115,509
6.080
14,385,000
20,471,589
1,776,080
33.080.509
1.816,080
ADEC loans
92,685
—
4.442
88,243
4,553
Compensated absences
204,461
172,760
204,461
172.760
172,760
EPA loan payable
10.417
—
10,417
—
—
Total
$
14.692,563
20.644,349
1,995,400
33,341,512
1.993.393
Business -type activities:
Municipal solid waste
collection and disposal:
Landfill closure and
post - closure care
costs
$
2.758,433
255,498
—
3,013.931
—
Notes payable
1.262,123
8,087
—
1,270,210
—
Total
$
4,020,556
263,585
—
4,284,141
—
Hospital facilities:
Long –term interfund
borrowings
$
1,546,492
—
55,670
1,490.822
57.919
Capital leases
185,970
—
185,970
—
—
Total
$
1.732,462
—
241,640
1.490,822
57.919
Kodiak Fisheries Research
Center:
Long –term interfund
borrowings
$
6,875,000
—
275.000
6,600,000
290.000
Business -type activities:
Capital leases
$
185,970
—
185,970
—
—
Landfill closure and post -
closure care costs
2.758,433
255,498
—
3,013.931
—
Long –term interfund
borrowings
8.421.492
—
330,670
8.090.822
347,919
Notes payable
1.262,123
8.087
—
1.270,210
—
Total
$
12.628,018
263.585
516.640
12,374.963
347.919
For governmental activities. compensated absences are generally liquidated by the general fund. I
47 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
(8) Insurance and Risk Retention
The Kodiak Island Borough is exposed to numerous risks of loss associated with the operations of a
government. These potential losses include, but are not limited to. employee relations and injuries.
contracts, theft, loss or damage of property, and general liability. The Borough manages its risks from
these potential losses by participating in the Alaska Municipal League Joint Insurance Association, as well
as purchasing commercial insurance coverage. This insurance has provided the Borough with adequate
coverage in the past. There were no significant changes in insurance coverage obtained and there were no
claims or settlements that exceeded insurance coverage in any of the past three fiscal years.
The Borough is a member in good standing of the Alaska Municipal League Joint Insurance Association
(JIA), a governmental insurance pool established by the Alaska Municipal League. Claims are covered on
an occurrence basis. JIA provides risk management services and appraisal services and there is also a
separate pool for policy liability. The Kodiak Island Borough's Mayor, Manager and Finance Director are
members of the board of directors of the JIA.
The responsibilities of both JIA and the participants are as follows:
(a) Responsibilities of JIA
JIA shall perform the following instructions in discharging its responsibilities:
• Provide insurance coverage as necessary for property, including building and contents,
automobile, mobile equipment and data processing equipment, casualty, including general
liability, public officials' and employees' liability, auto liability and employee benefit liability;
workers' compensation, including employers' liability; commercial blanket bond; and time
element.
• Assist each participant's assigned risk manager with the implementation of that function.
• Provide loss prevention and safety and consulting services to participants as required.
• Provide claims adjusting and subrogation services for claims covered by the association's joint
insurance arrangement.
(b) Responsibilities of the Participants
The participants shall have the following responsibilities:
• The Borough Assembly or appointing official of each participant shall appoint a representative
as provided in Article 5, Section 2 of the bylaws and at least one alternate representative to
attend member meetings.
• Each participant shall appoint an employee of the participant to be responsible for the risk
management function within that entity and to serve as a liaison between the participant and
JIA with respect to risk management.
• Each participant shall maintain an active safety officer and /or committee, and shall comply
with all recommendations of JIA concerning the development and implementation of a loss
control policy to prevent unsafe practices.
48 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2005
Each participant shall maintain its own set of records as a loss log. in all categories of loss to
insure accuracy of JIA's loss reporting system.
(9) Rental Revenues
(a) Hospital Facilities Enterprise Fund
The Kodiak Island Borough Assembly leases the Kodiak Island Hospital and Care Center premise
and equipment to Sisters of Providence d.b.a. Providence Alaska Medical Center who assumed
responsibility for the hospital's operations as of April 21, 1997. The lease agreement is effective for
a term of ten years from that date and contains provisions for an additional ten -year option. The lease
is cancelable by either party with a one year notice. The hospital fixed assets, the lease income, and
all other costs relating to the agreement are accounted for by the Borough in the Hospital Facilities
enterprise fund.
The agreement with Providence specifies that the Borough shall provide at least $150,000 per year
for the purchase of new and replacement equipment for the hospital. The Borough is also required to
fund any major maintenance and repairs projects exceeding $10,000 in cost. Additionally, the
Borough receives $60,000 per month and 50% of the net revenues of the hospital, up to $600,000, in
rental revenues. In August 2003, the lease was amended that required Providence to pay an
additional lease payment of $1,300,000 in 2004. Prior to the commencement of each subsequent
lease year, both parties will negotiate the additional lease payment for the following year. The
negotiated lease payment is equal to the payment that the Borough makes as a contribution to the
State of Alaska Medicaid program.
Should the Borough wish to terminate the lease agreement without cause, the Borough would be
required to refund a $2,000,000 down payment made on the lease in proportion to the number of
years remaining on the ten -year term of the lease, at the rate of $200,000 per year for each remaining
year. For accounting purposes, such payment would be considered to be a penalty for the early
termination of the lease.
(b) Kodiak Fisheries Research Center
The Kodiak Fisheries Research Center (KFRC) leases its premise to the
Administration (GSA), Alaska Department of Fish and Game (ADF &G), the
Department of Commerce, National Oceanic and Atmospheric Administration
University of Alaska Fairbanks (UAF).
General Services
GSA on behalf of
(NOAA), and the
The lease with the GSA is from March 1, 2003 through September 30, 2018, cancelable with
120 days notice. Annual rent varies from $32,000 in 2006 to $41,000 in 2018.
The lease with ADF &G is from October 1, 1998 through September 30, 2018, with an option to
extend for up to two additional five —year periods. Annual rent varies from $28,800 in 2006 to
$52,800 in 2011. The annual rent from 2012 through 2018 will be based on $52,800 and adjusted for
the tenant's proportionate share of building expenses and utilization of the seawater system.
49 (Continued)
1
1
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
1 The lease with NOAA is from c
O tober 1, 1998 through September 30. 2018, with an option to
extend for up to four additional five —year periods. Annual rent is $756,000 plus operational and
maintenance expenses of $699,076. Operational and maintenance expenses are adjusted every five
years to actual costs.
The lease with UAF is from October 1, 1998 through September 30, 2018, cancelable with 30 days
notice, with an option to extend for up to two additional five —year periods. Annual rent varies from
$90,000 in 2006 to $143,601 in 2018.
(10) Retirement Commitments
(a) PERS
The Alaska Public Employees' Retirement System (PERS) is a defined benefit agent
multiple- employer public employee retirement system that acts as a common investment and
administrative agent for political subdivisions within the State of Alaska. 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.
The plan provides pension and other postemployment healthcare. death and disability benefits.
During 2005, the Borough adopted Governmental Accounting Standards Board Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions.
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 99811 -0203 or by calling (907) 465 -4460.
Under state law, covered employees are required to contribute 6.75% (7.5% for police and fire
personnel) of their annual covered payroll and the Borough is required to contribute an actuarially
determined rate that, expressed as a percentage of annual covered payroll, is sufficient to accumulate
assets to pay pension and other postemployment benefits (OPEB) when due. However, the 2005
actuarially determined rate was 16.80% of applicable gross pay and the employer contribution rate
was capped at 7.64% in accordance with a PERS statute that limits yearly increases to 5 %.
Benefits vest with 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 or more years of credited
service may retire at any age and receive a normal benefit.
50 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2005
Retirement benefits are calculated by multiplying the average monthly compensation (AMC) times
credited PERS service times the percentage multiplier. The AMC is determined by averaging the
salaries earned during the five highest (three highest for Police/Fire members or members hired prior
to July 1, 1996) consecutive payroll years. Members must earn at least 115 days of credit in the last
year worked to include it in the AMC calculation. The PERS pays a minimum benefit of $25.00 per
month for each year of service when the calculated benefit is less.
The percentage multipliers for police /fire personnel are 2% for the first ten years of service and 2.5%
for all service over 10 years. The percentage multipliers for all other participants are 2% for the first
ten years, 2.25% for the next ten years, and 2.5% for all remaining service earned on or after July 1,
1986. All service before that date is calculated at 2 %.
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 and who have not reached age 60 may elect to pay for major medical
benefits.
Pension benefits are adjusted each year based upon increases in the Consumer Price Index (CPI) for
the prior year. The increase in the benefits is 75% of the CPI increase up to a 9% maximum for
recipients who are at least age 65 or on disability or 50% of the increase up to a 6% maximum for
recipients who are at least age 60 but under age 65 or who have been receiving benefits for at least
five years. Starting at age 65, or at any age for those employed before July 1, 1986, a retired
employee who remains in Alaska is eligible for an additional allowance equal to 10% of the base
benefit or $50 a month, whichever is greater.
Annual Cost and Net Obligation
The Borough's annual costs (expense) are calculated based on the annual required contribution of the
employer (ARC), an amount actuarially determined in accordance with the parameters of
GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding
excess) over a period not to exceed 20 years. The following table shows the components of the
Borough's annual cost, the amount actually contributed to the plan, and changes in the Borough's net
obligation to PERS:
Pension
OPEB
Annual required contribution
$ 159,228
106,152
Adjustment to annual cost
114,441
76,768
Annual cost
273,669
182,920
Contributions made
59,753
39,939
Increase in obligation
213,916
142,981
Net obligation, beginning of year
—
—
Net obligation, end of year
$ 213.916
142,981
51
(Continued)
' KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future. The schedule of funding progress, presented as required supplementary
information following the notes to the financial statements, presents multiyear trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the
time of each valuation and the historical pattern of sharing of benefit costs between the employer and
plan members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long -term perspective of the calculations. Significant actuarial methods
and assumptions were as follows:
52 (Continued)
I
Funded Status and Funding Progress (Unaudited)
1
The funded status of the plan as of June 30, 2003, was as follows:
Pension
OPEB
Actuarial accrued liability (AAL) $
11,170.000
7,466.000
Actuarial value of plan assets
8.701.000
5.816.000
Unfunded actuarial accrued liability (UAAL) $
2.469.000
1.650.000
Funded ratio (actuarial value of plan assets /AAL)
78%
78%
Covered payroll (active plan members) $
1,712,000
1,712.000
UAAL as a percentage of covered payroll
144%
96%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future. The schedule of funding progress, presented as required supplementary
information following the notes to the financial statements, presents multiyear trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the
time of each valuation and the historical pattern of sharing of benefit costs between the employer and
plan members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long -term perspective of the calculations. Significant actuarial methods
and assumptions were as follows:
52 (Continued)
I
i
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2005
I �
O PEB I -
3.00%
2.70%
2.00
June 30, 2003
Projected unit credit
Percent of pay.
open
20 years
5 -year
3.50%
8.25%
N/A
N/A
N/A
12.00%
The Borough's annual pension cost, the percentage of annual pension cost contributed to the plan,
and the net pension obligation for 2005 and the two preceding years were as follows:
Percentage
of APC Net pension
Year ended APC contributed obligation
6/30/2003 $ 1,748 100% $ —
6/30/2004 58 100 —
6/30/2005 273,669 22 213,916
The Borough's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the net OPEB obligation for 2005 and the two preceding years were as follows:
Annual Percentage of
OPEB annual OPEB Net OPEB
Year ended June 30 cost cost contributed obligation
2003 1.165 100% $
2004 39 100 —
2005 181920 22 142.981
J3 (Continued)
Pension
Contribution rates:
Employee:
Peace officers and firefighters
4.50c1c
Other employees
4.05%
Employer
3.00%
Actuarial assumptions:
Actuarial valuation date
June 30, 2003
Actuarial cost method
Projected unit credit
Amortization method
Percent of pay,
open
Remaining amortization period
20 years
Asset valuation method
5 -year
Inflation rate
3.50%
Investment return
8.25%
Projected salary increase:
Inflation
3.50%
Productivity and merit:
Peace officers and firefighters
2.50%
Others
2.00%
Health cost trend
N/A
I �
O PEB I -
3.00%
2.70%
2.00
June 30, 2003
Projected unit credit
Percent of pay.
open
20 years
5 -year
3.50%
8.25%
N/A
N/A
N/A
12.00%
The Borough's annual pension cost, the percentage of annual pension cost contributed to the plan,
and the net pension obligation for 2005 and the two preceding years were as follows:
Percentage
of APC Net pension
Year ended APC contributed obligation
6/30/2003 $ 1,748 100% $ —
6/30/2004 58 100 —
6/30/2005 273,669 22 213,916
The Borough's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the net OPEB obligation for 2005 and the two preceding years were as follows:
Annual Percentage of
OPEB annual OPEB Net OPEB
Year ended June 30 cost cost contributed obligation
2003 1.165 100% $
2004 39 100 —
2005 181920 22 142.981
J3 (Continued)
u
' KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30. 2005
1 (b) Deferred Compensation Plan
The Kodiak Island Borough has a deferred compensation plan created and amended in accordance
with Internal Revenue Code Section 457. The plan is available to all regular Borough employees.
The deferred compensation is not available to employees until termination, retirement, death,
1 disability or unforeseeable emergency.
All amounts deferred under this plan are held in a trust that was established for the exclusive benefit
of plan participants. Amounts contributed to the plan by participants during the year —ended June 30,
' 2005 was $88,510.
The plan is managed by the International City Managers Association Retirement Corporation. The
Borough believes that the plan does not meet the criteria for inclusion as a fiduciary fund.
(11) Contingencies
t (a) General
The Borough, in the normal course of its activities, is involved in various claims and pending
litigation. After consultation with legal counsel, management estimates that these matters will be
resolved without material adverse effect on the Borough's future financial position or results of
operations.
1 (b) Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by the
grantor agencies. Any disallowed claims, including amounts already collected, would become a
' liability of the general or other applicable funds. In management's opinion, disallowances, if any,
will not be material.
(c) Litigation
The Borough is a member of a mandatory class action lawsuit that resulted in a verdict against
Exxon Corporation in August 1994 in the amount of $5 billion for punitive damages and was later
1 reduced to $4.5 billion. The matter is now on appeal to the Ninth Circuit Court of Appeals. The share
of the settlement, if any, has not been recognized in the financial statements as the settlement is in
the appeals process. The ultimate outcome of the matter and the amount to be realized by the
Borough upon final settlement is indeterminable at this time.
� I
F,
L'
1 REQUIRED SUPPLEMENTARY INFORMATION
t
t
KODIAK ISLAND BOROUGH
Required Supplementary Information
Schedule of Funding Progress — PERS
June 30. 2005
III
Three -year historical trend information presenting the Borough's progress in accumulating sufficient assets to
pay pension and OPEB benefits under the PERS when due is
presented as
follows (dollar amounts in thousands):
(AAL)
UAL/FE as a
Actuarial
(UAAL)
percentage
Actuarial Actuarial
accrued
Funding
of covered
valuation value of
liability
excess
Funding Covered payroll
date assets (a)
(AAL) (b)
(FE) (a -b)
ratio (a/b) payroll (c) ((a -b) /c)
'
Pension:
6/30/2001 S 11.377
9.967
1.410
114ci( S 1.692 8 3
6130/2002 9.032
10.981
(1.949)
82% 2.011 (97)(7,
6/30/2003 8.701
11,170
(2,469)
78c7c 1.712 (144) 17(
OPEB:
6/30/2001 S 4,818
4,221
597
114171 S 1,692 35
6/30/2002 5.488
6.672
(1,184)
82cii 2.011 (59)(7c
6/30/2003 5,816
7,466
(1.650)
7817( 1,712 (96)17(
III
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
General Fund
Year ended June 30. 2005
(With summarized financial information for the year ended June 30, 2004)
56 (Continued 1
Variance with
final budget -
Budget
positive
2004
riginal
Final
Actual
(negative)
Actual
Revenues:
Property taxes:
Real
$ 6,923,110
6.923.110
6.962,534
39,424
6.076.102
Personal
1.050,440
1,050,440
995.953
(54,487)
981,285
Motor vehicle
190,000
190,000
203,603
13,603
165,148
Boat
8,520
8,520
6,575
(1.945)
7.275
Penalty and interest
150,000
150,000
204,612
54.612
135.823
Total property taxes
8,322,070
8,322,070
8,373,277
51,207
7,365,633
Severance taxes:
Fish
841,490
841,490
980.110
138,620
746.118
Mining
6,190
6,190
8,416
2,226
6,822
Logging
51,560
51,560
17,013
(34.547)
46.753
Total severance taxes
899.240
899.240
1,005,539
106,299
799,693
Intergovernmental:
State sources:
State shared revenue
-
-
-
-
-
Municipal assistance
-
-
-
-
-
Tax Payer Relief
-
-
-
-
146,321
Raw fish tax
805,000
785,000
773,290
(11.710)
649,927
Fish revitalization
-
-
-
-
-
Liquor license
-
-
-
-
-
Electric Co -op tax
20.000
20,000
27,205
7,205
26,337
Total state sources
825,000
805,000
800,495
(4,505)
822,585
Federal sources:
Payments in lieu of taxes
685,000
777,090
789,053
11.963
808,739
Miscellaneous
400,075
400,075
335,857
(64,218)
379,107
Total federal sources
1,085,075
1,177,165
1.124,910
(51255)
1,187,846
Total intergovernmental
revenue
1,910,075
1,982,165
1,925,405
(56,760)
2,010,431
Licenses, permits, fees, and other local
revenues:
Building and trailer permits
68,000
68,000
77,597
9,597
91,227
Subdivision and zoning fees
11,500
11.500
13.825
2,325
13,565
Sale of copies
26,000
26,000
18,394
(7,606)
18,298
Miscellaneous
41,000
61.000
51.805
(9,195)
64.808
Total licenses, permits, fees,
and other local revenues
146.500
166.500
161.621
(4,879)
187,898
Investment income
100,000
155.084
265.392
110.308
105,812
Total revenues
11,377.885
11,525.059
11.731,234
206.175
10,469,467
56 (Continued 1
I See accompanying notes to required supplementary information.
57
KODIAK
ISLAND
BOROUGH
Budgetary Comparison Schedule
j'
General Fund
Year ended
June 30. 2005
(With summarized
financial information for the year ended June 30. 2004)
Variance with
final budget -
Budget
positive
2004
'
Original
Final
Actual
(negative)
Actual
Expenditures:
Borough assembly
Borough manager
$ 159,410
209,110
159,410
359,110
126,388
355.019
:3,022
4.091
137,850
194.938
Borough clerk
330,102
328,502
304.259
23,243
292,203
Borough attorney
188,200
138,200
112.510
25,690
89,685
Finance department
639,870
596,990
556.616
40.374
409,523
Assessing department
320.560
270.560
246,884
23.676
209,134
Engineering /facilities department
92,220
92,220
76,195
16.025
63,755
Community development department
539,084
439,084
443,876
(4,792)
375,391
Building official
132.230
132.230
139.832
(7.602)
133,474
Economic development
113,840
113.840
87.322
26,518
53,652
General and administration
259,870
299,870
327,571
(27,701)
250,590
Emergency preparedness
5.500
5.500
5.428
72
5,129
School District support
7.975.440
7,887,410
7,973,035
(85,625)
7.721,706
Health and sanitation department
267,037
254,313
254,313
257,037
Education, culture, and recreation
125,987
127,335
127,335
163,487
Management information systems
231,865
356,865
381,037
(24,172)
257,239
Total expenditures
11.590.325
11,561,439
11,517,620
43,819
10.614,793
Excess of revenues
over expenditures
(212.440)
(36.380)
213.614
249,994
(145.326)
Other financing sources (uses):
Transfers in from other funds
-
-
-
-
850,000
Transfers to other funds
(560.767)
(510,097)
(510,097)
(399,290)
Total financing uses
(560.767)
(510,097)
(510.097)
-
450,710
Excess of revenues and transfers
in over expenditures and
transfers out
$ (773.207)
(546,477)
(296,483)
249,994
305,384
Fund balances, at beginning of year
Fund balances. at end of the year
1109,496
1.804,112
$
1.813.013
2,109,496
I See accompanying notes to required supplementary information.
57
Revenues:
Investment income
Total revenues
Expenditures:
Contingencies
Total expenditures
Excess of revenues over expenses
Other financing uses:
Transfers out to other funds:
Capital projects — state grants
Buildings and grounds
Debt service funds
Net other financing uses
Excess (deficiency) of revenues
over expenditures and other
financing uses
Fund balances, at beginning of year
Fund balances, at end of year
Budget
Original
4
s
KODIAK ISLAND BOROUGH
t
Budgetary Comparison Schedule
1.400,000
Special Revenue Fund — Facilities
548,662
Year ended June 30. 3005
'
(With summarized financial information for the year ended June 30, 2004)
851,338
Revenues:
Investment income
Total revenues
Expenditures:
Contingencies
Total expenditures
Excess of revenues over expenses
Other financing uses:
Transfers out to other funds:
Capital projects — state grants
Buildings and grounds
Debt service funds
Net other financing uses
Excess (deficiency) of revenues
over expenditures and other
financing uses
Fund balances, at beginning of year
Fund balances, at end of year
Budget
Original
Final
$ 1,400,000
1,400,000
1.400,000
1.400,000
(550,368) (550,368)
548,662
515,663
548,662
515,663
851,338
884,338
— (135,000)
(135,000)
— (6 22,384)
(300,970) (208,970)
(308,880)
90 (368,540)
(550,368) (550,368)
(550368)
— (404,060)
(851,338) (884,338)
(884,248)
90 (1294,984)
—
$ — —
239,823
329,823 (571,074)
515.662
37,544,509
38,115.583
$
37,774,332
37,544,509
Variance with
final budget —
See accompanying notes to required supplementary information
58
t
t
t
positive
200.1
Actual
(negative)
Actual
1,114,071
(285,939)
723,910
1,114,071
(285,929)
723,910
—
515.662
-
-
515.662
—
1,114,071
339.733
723,910
See accompanying notes to required supplementary information
58
t
t
t
KODIAK ISLAND BOROUGH
Notes to Required Supplementary Information - Budgetary Comparison Schedules
June 30. 2005
59
The Borough follows these procedures in establishing the budgetary data reflected in the financial statements:
' •
The Borough Manager must submit to the Borough Assembly by April 30 a proposed operating budget for
the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and
the means of financing them.
•
Public hearings are conducted by the Borough Assembly to obtain citizen comments.
•
By June 10, the budget is legally enacted through passage of an ordinance by Borough Assembly action. If
I
the Borough Assembly fails to pass an ordinance, the budget submitted by the Borough Manager becomes
the adopted budget.
•
Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or
1
administrative action. Generally, the following actions are required at the level of the particular change:
- All new appropriations are authorized by an appropriation ordinance that amends the annual budget
ordinance.
- A resolution of the Borough Assembly is required to move (appropriate) amounts between
departments and projects.
- The administration is authorized and directed by the Borough Assembly to effect the necessary line
item changes within the limits established by Items (1) and (2) above by project or department to
properly monitor, account, and report receipts and expenditures.
' 0
Expenditures may not legally exceed appropriations at the following levels: Capital Projects Funds -
project level, all other funds - department level.
•
All funds, except Capital Projects Funds, are budgeted on an annual basis encompassing a fiscal year.
Budgets of Capital Projects Funds generally encompass the period from start-up to project completion,
which is generally greater than one year.
1 •
Appropriations lapse at year -end to the extent that they have not been expended for all funds, except
Capital Projects Funds, which lapse at project completion.
•
Budgets adopted by the Borough Assembly are in accordance with accounting principles generally
accepted in the United States of America.
•
The Borough publishes a separate 2005 budget document. That document may be obtained from the
Kodiak Island Borough, Director of Finance. 710 Mill Bay Road, Kodiak, Alaska 99615.
59
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue
See special revenue section of the report.
Debt Service
See debt service section of the report.
Capital Projects
See capital projects section of the report
KODIAK ISLAND BOROUGH
Combinine Balance Sheet
Nonmajor Governmental Funds
June 30. 2005
(With summarized financial information at June 30. 2004)
Assets
Equity in central treasury
Temporary investments
Receivables:
State of Alaska
Federal government
Land sales contracts, due within one year
Property taxes
Notes receivable
Other
Due from other funds
Land sale contracts. due after one year
Notes receivable, due after one year
Total
Liabilities and Fund Balances
Liabilities:
Accounts payable
Retainages payable
Employee benefits accrued and withheld
Customer deposits
Unearned revenues
Due to other funds
Total liabilities
Fund balances (deficit):
Unreserved:
Designated for subsequent
year expenditures
Undesienated
Total fund balances (deficit)
Totals
See accompanying notes to financial statements.
Special
Debt
Capital
"Totals
revenue
service
projects
2005
2004
$ 857,787
158.409
-
1,016.196
955,005
2.012.699
-
-
2.012.699
2.545.792
20.030
-
248.832
268.862
339,808
-
-
6.355
6,355
6,750
8.000
-
-
8.000
8.000
14,479
-
-
14,479
17.829
53.374
-
-
53,374
-
25.105
-
-
'5,105
619,634
93.244
-
-
93.244
585.050
34,272
-
-
34. 2 _72
42.056
487,271
-
-
487.271
-
$ 3.606,361
158.409
255,187
4,019,857
5,1 19.924
$ 96.631
-
35.760
132.391
401,369
-
-
22.270
22.270
22.270
156
-
-
156
156
1.203
-
-
1.203
678
599,136
-
-
599.136
659,782
350.543
-
301.650
652.193
570,568
1.047.669
-
359.680
1.407.349
1.654,823
143.676 - - 143.676 256,860
2,414,916 158,409 (104.493) 2.468.832 3.208 241
2.558.592 158,409 (104,493) 2,612,508 3,465.101
$ 3,606.261 158.409 255,187 4,019,857 5.1R924
60
KODIAK ISLAND BOROUGH
Combining Statement of Revenues. Expenditures.
and Changes in Fund Balances
Nonmajor Governmental Funds
Year ended June 30. 2005
(With summarized financial information for year ended June 30. 2004)
See accompanying notes to financial statements.
61
Special
Debt
Capital
Totals
revenue
service
projects
2005
2004
Revenues:
Property taxes $
690,452
-
-
690.452
650.690
State sources
95.528
-
331.093
426,621
500.423
Federal sources
142,371
-
187,012
329.383
57.491
Land sale proceeds
22.738
-
-
22.738
9,206
Licenses, permits, fees.
and other local revenues
530,379
-
-
530.379
577,015
Investment income
52.826
-
-
52.826
36.421
Other
75,094
-
-
75.094
222.117
Total revenues
1.609,388
-
518,105
2.127,493
3.053.363
Expenditures:
Maintenance and operations
698,119
-
-
698,119
567.094
Debt service
1,571
-
-
1.571
-
Health and sanitation department
75,435
-
-
75.425
74.847
Fire services
425,506
-
-
425,506
864.703
Service district maintenance
347,934
-
-
347.934
425,712
Community and economic development
65.804
-
-
65.804
160.720
Education, culture, and recreation
58.658
-
-
58.658
54,272
Emergency preparedness
18.093
-
-
18.093
43.626
Fem Fuller trust
22,547
-
-
22,547
24,500
Capital and improvement:
Schools
-
-
12,717
12.717
131,324
General
-
-
511.798
511,798
656.423
Total expenditures
1,713.657
-
524.515
2.238.172
3.003.2 21
Excess (deficiency) of revenues
over expenditures
(104,269)
-
(6.410)
(110.679)
(949,858)
Other financing sources (uses):
Transfers in from other funds
227,637
-
-
227,637
1.608.374
Transfers out to other funds
(235,265)
-
-
(235,265)
(266.780)
Net other financing sources (uses)
(7,628)
-
-
(7.628)
1,341,594
Excess (deficiency) of revenues
and other financing sources
over expenditures and other
financing uses
(111.897)
-
(6,410)
(118.307)
391.736
Find balances (deficit) at beginning of year
2,670.489
158.409
(98,083)
2,730,815
3,073365
Fund balances (deficit) at end of year $
2.558,592
158.409
(104.493)
2.61150S
3.465.101
See accompanying notes to financial statements.
61
NONMAJOR SPECIAL REVENUE FUNDS
The Fire Protection Area No. 1 Fund accounts for the activities related to fire
suppression and fire prevention services to the citizens of the service area.
The Womens Bay Fire Department Fund accounts for the activities related to
fire suppression and fire prevention services to the citizens of the service area.
The Kodiak Airport Fire District Fund accounts for the activities related to
fire suppression and fire prevention services to the citizens of the service area.
The Monashka Bay Road Service Area Fund accounts for the activities
related to road services within the service area.
The Service District No.1 Fund accounts for the activities related to
maintenance service to roads within the district, including snow removal,
ditching and grading.
The Womens Bay Service Area Fund accounts for the activities related to
maintenance service to roads within the service area, including snow and ice
removal, ditching and culvert work.
The Bay View Road Service Area Fund accounts for the activities related to
road services within the service area.
The Service Area No. 2 Fund accounts for the activities related to water and
sewer services in the service area. This fund is in the design stage at present.
The Coastal Management Fund accounts for State of Alaska and Federal
grants related to the effects of coastal energy development impacts.
Expenditures of these grants are for comprehensive plans, coastal sensitivity
analysis, outer continental shelf impact analysis, ordinance update, and planning
and zoning.
The Childcare Assistance Fund accounts for a State of Alaska grant to finance
day care for children of low- income employed families.
NONMAJOR SPECIAL REVENUE FUNDS
The Local Emergency Planning Committee Fund accounts for State of Alaska
grants provided for regional emergency preparation, response, and mitigation
planning.
The Land Sales Fund accounts for the disposal of Borough -owned lands. The
proceeds of land disposals are generally used for the management of Borough lands
and the repairs and maintenance of Borough school buildings.
The Building and Grounds Fund accounts for the operations and maintenance
of certain buildings and grounds owned by the Borough that are jointly shared with the
City of Kodiak, the Kodiak Island Borough School District and certain nonprofit
community organizations.
The Woodland Acres Street Light Service Area Fund accounts for activities
related to the provision of street lighting within the service area.
The Kodiak Arts Council Fund accounts for activities related to the facilitation of
the arts in the Kodiak community.
The Tourism Development Fund accounts for the collection of the Borough
Transient Accommodation Tax (Bed Tax) and its subsequent transfer to the Kodiak
Island Convention and Visitor Bureau.
The Trinity Islands Lighting District Fund accounts for activities related to the
provision of street lighting within the service area.
The Trinity Islands Paving District Fund accounts for activities related to
paving the dirt roads within the subdivision.
The Mission Lake Tide Gate Fund accounts for activities related to maintaining the
tide gate for the residents of the service area.
The Fern Fuller Trust Fund accounts for the distribution of funds to the
beneficiaries of the trust
THIS PAGE INTENTIONALLY LEFT BLANK
02 (Continued i
KODIAK ISLAND BOROl1GII
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30. 2005
( With summarized financial information for the year ended June 30.
2004
Fire and Road Service Areas
Fire
Road
Fire
Women's Kodiak
Nlonashka
Protection
Bay Fire Airport Fire
Bay Road
Service
Assets
Area No. 1
Department District
Service Area
District No. 1
Equity in central treasury
S
—
131.379 26.646
50.113
172.911
Temporary investments
993.130
— —
—
—
Receivables:
State of Alaska
—
— —
—
—
Land sales contracts, due within one year
—
— —
—
—
Property taxes
5.309
2.276 619
303
2.714
Notes receivable
—
— —
—
—
Other
3,156
— —
—
—
Due from other funds
—
— —
—
93,244
Land sale contracts, due after one year
—
— —
—
—
Notes receivable, due after one year
—
— —
—
—
Total
S
1,001,595
133.655 27.265
50.431
268.869
Liabilities and Fund Balances (Deficits)
Liabilities:
Accounts payable
S
18.999
331 —
395
14,632
Employee benefits accrued and withheld
—
— —
—
—
Customer deposits
—
1,025 —
—
—
Unearned revenues
—
— —
—
—
Due to other funds
49,572
40,609 —
—
—
Total liabilities
68.571
41.965 —
395
14.632
Fund balances (deficits):
Unreserved (deficits):
Designated for subsequent year expenditures
85,250
— —
14,076
39.850
Undesignated
847,774
91.690 27.265
35.950
214.387
Total fund balances (deficits)
933.024
91,690 27,265
50.026
254,237
Totals
S
1,001,595
133.655 27.265
50.421
268.869
02 (Continued i
Fire and Road Service Areas
6? Wonlimied )
Road
Federal and State
grTLprograms
hiId care
Women's Bay
Bay View Road
Service Area
Coastal
assistance
Service Area
Service Area
No. 2
management
program
L.E.P.C.
Land sales
178.317
136
4.167
—
8.605
—
6.940
—
—
—
—
—
—
713.695
—
—
—
7.670
1.154
11,206
-
-
3,173
85
—
—
—
—
—
—
—
—
—
—
—
34.272
181,490
221
4.167
7.670
9.759
11.206
762.913
9.784
2.126
—
1.846
1,421
5.949
2,558
—
—
—
—
—
—
42,272
—
—
—
24.823
—
11.038
—
9,784
2.126
—
26.669
1,421
16.987
44,830
171,706
(1.905)
4,167
(18,999)
8.338
(5.781)
718,083
171,706
(1,905)
4.167
(18,999)
8,338
(5,781)
718.083
181.490
221
4.167
7,670
9.759
11,206
762,913
6? Wonlimied )
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30. 2005
(With summarized financial information for the year ended June 30. 2004)
Assets
Equity in central treasury
Temporary investments
Receivables:
State of Alaska
Land sales contracts, due within one year
Property taxes
Notes receivable
Other
Due from other funds
Land sale contracts, due after one year
Notes receivable, due after one year
Total
Liabilities and Fund Balances (Deficits)
Liabilities:
Accounts payable
Employee benefits accrued and withheld
Customer deposits
Unearned revenues
Due to other funds
Total liabilities
Fund balances (deficits):
Unreserved (deficits):
Designated for subsequent year expenditures
Undesignated
Total fund balances (deficits)
Totals
$ 36,052 458 1,464
156 — —
— — 2,881
36,208 458 4,345
— 4,500 —
326,394 14,211 (2,388)
326,394 18,711 (2,388)
$ 362.602 19,169 1,957
64
(Continued)
Woodland
Buildings
Acres Street
and
Light Service
Kodiak Arts
grounds
Area
Council
$ 55,828
19,169
—
305,874
—
—
900
—
1,957
$ 362,602
19,169
1,957
$ 36,052 458 1,464
156 — —
— — 2,881
36,208 458 4,345
— 4,500 —
326,394 14,211 (2,388)
326,394 18,711 (2,388)
$ 362.602 19,169 1,957
64
(Continued)
65
Trinity Acres
Tourism
Lighting
NEssion Lake
Fern Fuller
Trinity Acres
Totals
Development
District
Tide Gate
Trust
Paving
2005
2004
—
—
4,570
198.995
—
857.787
586,255
—
—
—
—
—
2.012,699
1.993.400
—
—
—
—
—
20.030
55,101
—
—
—
—
—
8.000
8,000
—
—
—
—
—
14.479
17,829
—
—
—
53.374
—
53.374
—
2,873
—
—
16,219
—
25.105
619,634
—
—
—
—
—
93.244
313.060
—
—
—
—
—
34.272
42.056
—
—
—
487,271
—
487.271
—
1873
—
4,570
755,859
—
3.606.261
3,636.335
—
147
469
—
—
96,631
65.430
—
—
—
—
—
156
156
178
—
—
—
—
1.203
678
—
—
—
556.864
—
599.136
659,782
1,397
3.490
—
—
216.733
350.543
239,800
1,575
3.637
469
556,864
216,733
1.047.669
965,846
—
—
—
—
—
143,676
256,860
1.298
(3.637)
4,101
198.995
(216,733)
2.414,916
2.413,629
1.298
(1637)
4,101
198.995
(216.733)
2.558.592
2.670,489
2,873
—
4,570
755.859
—
3.606 261
3,636,335
65
Revenues:
Property taxes
State sources
Federal sources
Land sale proceeds
Licenses, permits, fees,
and other local revenues
Investment income
Other
Total revenues
Expenditures:
Debt service
Community development department
General and administrative
Health and sanitation department
Services district maintenance
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in from other funds
Transfers out to other funds
Net other financing sources (uses)
Excess (deficiency) of revenues and
other financing sources over
expenditures and other financing uses
Fund balances (deficits), at beginning of year
Fund balances (deficits), at end of year
122,827 37,548 (2.295) (11,704)
810,197 54.142 29.560 61,730
S 933,024 91.690 27.265 50.026
66
(Continued)
'
KODIAK ISLAND BOROUGH
Road
Nonmajor Special Revenue Funds
Women's
Combining Statement of Revenues. Expenditures.
111onashka
and Chan_es in Fund Balances (Deficits)
'
Year ended June 30, 2005
Bay Road
( With summarized financial information for the year ended June 30. 2004 t
Department
District
Service Area
Fire and Road Service Areas
60.907
122,827 37,548 (2.295) (11,704)
810,197 54.142 29.560 61,730
S 933,024 91.690 27.265 50.026
66
(Continued)
Fire
Road
Fire
Women's
Kodiak
111onashka
Protection
Bay Fire
Airport Fire
Bay Road
Area No. i
Department
District
Service Area
S 330,757
60.907
15,520_3
.939
—
297
—
—
142,371
—
—
—
5,214
9.030
—
—
18,406
1.669
971
1.685
15
—
—
—
496,763
71.903
16.491
25.624
—
1,571
—
—
373,936
51,541
29
854
—
—
—
36.474
373,936
53.112
29
37.328
122,827
18.791
16.462
(11,704)
—
18.757
—
-
-
—
(18.757)
-
-
18.757
( 18.757)
—
122,827 37,548 (2.295) (11,704)
810,197 54.142 29.560 61,730
S 933,024 91.690 27.265 50.026
66
(Continued)
67 1 Continued)
Fire and Road Service Areas
Road
Federal and State
Grant Programs
hild Care
Service
Women's Bay
Bay View Road
Service Area
Coastal
Assistance
District No. 1
Service Area
Service Area
No. 2
Management
Program
L.E.P.C.
land Sales
154,016
93.550
5.586
—
—
—
—
-
-
—
—
—
1.805
75.425
18,001
—
—
—
—
—
—
—
—
22.738
-
20.000
-
-
-
-
-
1,000
4.835
5,051
40
95
—
—
—
13,695
—
—
—
—
—
—
—
79
158,851
118.601
5.626
95
1.805
75.425
18.001
37.512
—
—
—
—
20,804
—
—
—
7.410
1,548
53
—
18,093
33,710
—
—
—
75.425
—
—
192,147
113,941
5.372
—
—
—
—
—
199.557
115.489
5,425
—
20.804
75.425
18.093
33.710
(40.706)
3.112
201
95
(18.999)
—
(92)
3.802
—
(92)
3,802
(40,706)
3.112
201
95
(18.999)
294.943
168.594
(2.106)
4,072
—
8,338
(5.689)
714,281
254,237
171,706
(1.905)
4.167
(18,999)
8,338
(5.781)
718.083
67 1 Continued)
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Statement of Revenues. Expenditures.
and Changes in Fund Balances (Deficits)
Year ended June 30. 2005
(With summarized financial information for the year ended June 30.'_004
Revenues:
Property taxes
State sources
Federal sources
Land sale proceeds
Licenses, permits, fees,
and other local revenues
Investment income
Other
Total revenues
Expenditures:
Debt service
Community development department
General and administrative
Health and sanitation department
Services district maintenance
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in from other funds
Transfers out to other funds
Net other financing sources (uses)
Excess (deficiency) of revenues and
other financing sources over (under)
expenditures and other financing uses
Fund balances (deficits), at beginning of year
Fund balances (deficits), at end of year
(317.642) (4.995) (1.954)
308.880 — —
308.880 — —
(8,763)
Woodland
(1,954)
335,156
Acres Street
(434)
Buildings and
Light Service
Kodiak Arts
Grounds
Area
Council
417.545
—
56.704
5.874
480
—
433.419
480
56,704
641,061
5.475
58.658
(317.642) (4.995) (1.954)
308.880 — —
308.880 — —
(8,763)
(4,995)
(1,954)
335,156
33.706
(434)
$ 326,394
18.711
(3.388)
68
(Continued)
69
Trinity Acres
Tourism
Street Light
Mission Lake
Fern Fuller
Trinity Acres
Totals
Development
Service Area
Tide Gate
Trust
Paving
2005
2004
—
3.721
2,456
—
—
690.452
650.690
—
—
—
—
—
95.528
156,098
—
—
—
—
—
142.371
11445
—
—
—
—
—
22,738
9.206
20,886
—
—
—
—
530.379
552.850
25
—
—
—
—
52.826
31,601
—
—
—
75,000
—
75,094
222.117
20,911
3,721
2.456
75.000
—
1.609,388
1,635,007
—
—
—
—
—
1,571
—
45,000
—
—
—
—
65.804
89,649
—
1,773
6.010
22.547
225
1? 22,923
1.649,926
—
—
—
—
—
75.425
74.847
—
—
—
—
—
347,934
401,052
45,000
1.773
6,010
22,547
225
1,713,657
2.215,474
(24,089)
1,948
(3,554)
52.453
(225)
(104269)
(580467)
—
—
—
—
—
227.637
985,990
—
—
—
—
(216.508)
(235,265)
(266,780)
—
—
—
—
(216.508)
(7,628)
719,210
(24,089)
1,948
(3,554)
52.453
(216.733)
(111,897)
138,743
25,387
(5,585)
7,655
146,542
—
2.670.489
2.531.746
1.298
(3.637)
4.101
198,995
(216,733)
2,558.592
2,670,489
69
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas - Fire Protection Area No. 1
Schedule of Revenues. Expenditures.
and Changes in Fund Balances
Budget and Actual
Year ended June 30. 2005
(With summarized financial information for the year ended June 30, 2004)
70
2005
Variance
positive
2004
Budget
Actual
(negative)
Actual
Revenues:
Property taxes $
321.000
330,757
9.757
309,435
Federal sources
-
142,371
142,371
-
Licenses, permits, fees, and other
local revenues
5,500
5,214
(286)
4,294
Investment income
-
18.406
18.406
21,800
Miscellaneous
500
15
(485)
995
Total revenues
327,000
496,763
169.763
336,524
Expenditures:
General and administrative:
Fire chief
70,000
63,388
6,612
61,086
Volunteers
22,000
16.350
5,650
23,715
Fringe benefits
19,860
19,989
(129)
20,899
Professional services
13,000
4,105
8,895
2,319
Support goods and services
135,100
90,784
44,316
125,809
Capital outlay
185,000
179,320
5,680
339,458
Depreciation
30,000
-
30,000
-
Total expenditures
474,960
373,936
101,024
573,286
Excess (deficiency) of revenues over
expenditures
(147,960)
122,827
270.787
(236,762)
Fund balances, at beginning of year
810,197
1,046,959
Fund balances, at end of year
$
933,024
810,197
70
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas — Womens' Bay Fire Department
Schedule of Revenues. Expenditures,
and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the vear ended June 30, 2004)
Variance
positive
Budget Actual (negative)
Revenues:
Property taxes $ 60,000 60,907 907
State sources — 297 297
Licenses, permits, fees, and
other loca]revenues 9.000 9.030 30
Investment income
Total revenues
Expenditures:
Debt service:
Interest
General and administrative:
Personnel services
Fringe benefits
Professional services
Support goods and services
Capital outlay
Total expenditures
Excess (deficiency) of revenues over
expenditures
Other financing sources:
Transfers in from other funds:
Special revenue funds
Excess (deficiency) of revenues and
other financing sources over
expenditures
Fund balances, at beginning of year
Fund balances, at end of year
69,500 71,903 2,403
1.571 (1,571)
2004
58,744
3,995
9.441
1.878
3,000
618
2,382
3,163
650
96
554
3,219
—
30
(30)
110
68,200
52,236
15,964
40,807
22,725
(1,439)
24,164
244,091
94,575
53.112
41,463
291,390
(25,075)
18,791
43,866
(217,332)
16.700
18.757
2.057
16,780
$ (8.375)
37,548
45,923
(200,552)
M
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas — Kodiak Airport Fire District
Schedule of Revenues, Expenditures.
and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the year ended June 30, 2004)
Variance
positive
Budget Actual (negative)
Revenues:
Property taxes $ 15.390 15.520 130
Investment income
Total revenues
Expenditures:
General and administrative:
Contracted services
Support goods and services
Total expenditures
Excess of revenues over expenditures
Other financing uses:
Operating transfers out to other funds:
Womens Bay Fire District
Excess (deficiency) of revenues over
expenditures and other financing
uses
Fund balances, at beginning of year
Fund balances, at end of year
15,490
15,400
15,490
16,491
15,400
29
15,461
2004
Actual
15,382
283
15,665
27
27
(18,757) (18,757) (16,780)
$ — (2,295) (2,295) (1,142)
29,560 30,702
$ 27,265 29,560
72
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas — Monashka Bav Road Service Area
Schedule of Revenues, Expenditures,
and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the year ended June 30, 2004)
Revenues:
Property taxes
Investment income
Total revenues
Expenditures:
General and administrative:
Personnel services
Support goods and services
Service district maintenance:
Snow removal /sanding
Road grading/ditching
Repairs and maintenance
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances, at beginning of year
Fund balances, at end of year
Budget
$ 20,100
1,500
500
1,000
12,000
5,000
43,500
$ (21.900)
73
Variance
positive
2004
Actual
(negative)
Actual
23,939
3,839
23,884
1,685
185
672
25,624
4.024
24,556
635
(135)
506
219
781
105
4,625
7,375
11,003
26.944
(21,944)
3,100
4,905
20.095
15.112
37,328
6.172
29,826
(11.704)
10,196
( 5,270)
61,730
67,000
$ 50,026
61,730
73
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas — Service District No. I
Schedule of Revenues, Expenditures,
and Changes in Fund Balances
Budget and Actual
Year ended June 30. 2005
(With summarized financial information for the year ended June 30, 2004)
74
Variance
positive
2004
Budget
Actual
(negative)
Actual
Revenues:
Property taxes
$ 152,000
154,016
2,016
141.320
Investment income
2,500
4,835
2,335
4.050
Total revenues
154,500
158,851
4,351
145,370
Expenditures:
General and administrative:
Personnel services
5,300
6,947
(1.647)
6,754
Support goods and services
2,100
463
1.637
500
Service district maintenance:
Snow removal /sanding
95,000
50,316
44,684
69,785
Road grading /ditching
50,000
73.507
(23.507)
108,219
Repairs and maintenance
50,000
68.324
(18,324)
18,719
Total expenditures
202.400
199,557
2,843
203,977
Excess (deficiency) of revenues
over expenditures
$ (47,900)
(40,706)
7.194
(58,607)
Fund balances, at beginning of year
294,943
353,550
Fund balances, at end of year
$
254,237
294,943
74
KODIAK ISLAND BOROUGH
Nonmajor Special Rex enue Funds
Fire and Road Service ,areas — W'omens' Bay Road Service Area
Schedule of Revenues. Expenditures, and Changes in Fund Balances
Budget and Actual
Year ended June 30. 2005
(With summarized financial information for the year ended June 30. 2004)
75
Variance
positive
2004
Budget
Actual
(negative)
Actual
Revenues:
Property taxes $
92,500
93,550
1.050
90,276
Licenses, permits, fees, and
other local revenues
20,000
20,000
—
20,000
Investment income
500
5,0551
4,551
2.191
Total revenues
113.000
118,601
5,601
112,467
Expenditures:
General and administrative:
Personnel services
750
862
(112)
1,109
Support goods and services
21,200
686
20.514
773
Service district maintenance:
Snow removal/sanding
30.000
17,623
12.377
71,623
Road grading /ditching
31,650
23,422
8,228
54,077
Repairs and maintenance
30,000
72.896
(42.896)
35,976
Total expenditures
113,600
115,489
(1,889)
163.558
Excess (deficiency) of revenues over
expenditures $
(600)
3.112
3,712
(51,091)
Fund balances, at beginning of year
168,594
219,685
Fund balances, at end of year
$
171.706
168,594
75
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas — Bay View Road Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balances (Deficits)
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the vear ended June 30, 2004)
76
Variance
positive
2004
Budget
Actual
(negative)
Actual
Revenues:
Property taxes $
4,600
5,586
986
5,587
Investment income
200
40
(160)
61
Total revenues
4,800
5,626
826
5,648
Expenditures:
General and administrative:
Personnel services
—
44
(44)
209
Support goods and services
—
9
(9)
72
Service district maintenance:
Snow removal/sanding
2,500
2.102
398
5,383
Road grading /ditching
1,000
1,852
(852)
7,755
Repairs and maintenance
1,300
1,418
(l 18)
300
Total expenditures
4,800
5,425
(625)
13,719
Excess (deficiency) of revenues over
expenditures $
—
201
201
(8,071)
Fund balance (deficit), at beginning of year
(2,106)
5,965
Fund deficits, at end of year
$
(1,905)
(2,106)
76
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas — Service Area No. 2
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the year ended June 30,'_004)
Revenues:
Investment income
Expenditures:
Support goods and services
Total expenditures
Excess of revenues over
expenditures
Fund balances, at beginning of year
Fund balances, at end of year
Budget
Variance
positive
Actual (negative)
95 95
95 95
2004
Actual
41
41
4,031
4,072
77
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Coastal Management
Schedule of Revenues, Expenditures, and Changes in Fund Balances (Deficit)
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the year ended June 30, 2004)
Revenues:
State sources — grants
Total revenues
Expenditures:
Community development department:
Planning and zoning
Total expenditures
Deficiency of revenues over
expenditures
Fund balances, at beginning of year
Fund balance (deficit), at end of year
Variance
positive
Budget Actual (negative)
$ 25,650 1,805 (23.845)
25,650 1,805 (23.845)
25,650 20,804
25,650 20,804
$ — (18,999)
$ (18,999)
4.846
4,846
2004
Actual
44,649
44.649
44,649
44,649
(18.999) —
78
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Child Care Assistance Program
Schedule of Revenues. Expenditures. and Changes in Fund Balances
Budget and Actual
Year ended June 30. 2005
(With summarized financial information for the vear ended June 30, 2004)
79
Variance
positive
2004
Budget
Actual
(negative)
Actual
Revenues:
State sources — grants
$ 79,750
75,425
(4.325)
69,517
Total revenues
79,750
75,425
(4,325)
69,517
Expenditures:
Health and sanitation department:
Personnel
66,240
66,130
110
63,658
Support goods and services
13,510
9,295
4,215
11,189
Total expenditures
79.750
75,425
4,325
74.847
Excess of revenues over
expenditures
$ —
—
—
(5,330)
Fund balances, at beginning of year
8,338
13,668
Fund balances, at end of year
$
8.338
8.338
79
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
L.E.P.C.
Schedule of Revenues, Expenditures, and Changes in Fund Balances (Deficit)
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the year ended June 30, 2004)
Variance
positive
Budget Actual (negative)
Revenues:
State sources:
L.E.P.C. grant
Emergency operations planning grant
Total revenues
Expenditures:
General administrative:
Personnel services
Support goods and services
Contracted services
Total expenditures
Deficiency of revenues
over expenditures
Fund balance (deficit), at beginning of year
Fund deficits, at end of year
$ 35,937
35,937
12,087
7.000
$ — (92) (
(5.689)
$ (5.781)
18,001 (17,936)
12,563 (476)
5,530 1,470
— 16,850
2004
Actual
20,000
17,937
37,937
24,097
2,693
16,836
43,626
(5,689)
(5,689)
80
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Land Sales
Schedule of Revenues. Expenditures, and Changes in Fund Balances
Budget and Actual
Year ended June 30. 2005
(With summarized financial information for the vear ended June 30, 2004)
Fund balances, at beginning of year
Fund balances, at end of year
Budget
Revenues:
Land sale proceeds $
205.000
Licenses, permits, fees, and other
(negative)
local revenues
1,000
Investment income
9,206
Gravel sales
25,000
Other
13,695
Total revenues
231,000
Expenditures:
(25,000)
General and administrative:
79
Personnel services
21,000
Contracted services
10,000
Support goods and services
200,000
Total expenditures
231,000
Excess of revenues
5,496
over expenditures
—
Other financing sources /(uses):
183.286
Transfers in from other funds:
33,710
Hospital Enterprise Fund
—
Transfers out to other funds:
General fund
—
Net other financing sources (uses)
—
Deficiency of revenues and other
financing sources over expenditures
and other financing uses $
—
Fund balances, at beginning of year
Fund balances, at end of year
650,000
( 50,000)
600,000
3.802 3.802 591,660
714,281 122,621
$ 718,083 714,281
81
Variance
positive
2004
Actual
(negative)
Actual
22,738
(18 ^_.262)
9,206
1.000
—
1,000
13,695
13,695
-
-
(25,000)
40,000
79
79
80
3 7,5 12
(193,488)
50.286
11,500
9.500
21,314
5,496
4,504
8,195
16.714
183.286
29,117
33,710
197,290
58
3.802
3,802
(8,340)
650,000
( 50,000)
600,000
3.802 3.802 591,660
714,281 122,621
$ 718,083 714,281
81
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Buildings and Grounds
Schedule of Revenues. Expenditures. and Changes in Fund Balances
Budget and Actual
Year ended June 30. 2005
(With summarized financial information for the year ended June 30. 2004)
Revenues:
Rental income
Investment income
Total revenues
Expenditures:
General and administrative:
School buildings
Borough building
Mental health center
Parks operation and maintenance
Total expenditures
Deficiency of revenues under expenditures
Other financing sources (uses):
Transfers in from other funds:
Facilities Fund
General Fund
Transfers out to other funds:
General Fund
Net other financing sources
Deficiency of revenues and other
financing sources over expenditures
Fund balances, at beginning of year
Fund balances, at end of year
Variance
positive 2004
Budget Actual (negative) Actual
$ 405.000 417.545 12.545 408.100
405,000 423.419 18,419 408.100
346.000 366.007 (20,007)
263.800 258,301 5.499
11,970 5.469 6,501
644.270 641.061
k— �j k
208.970
208.970
$ (30.300)
3.309
21.628
208,880 (90)
300.291
343.313
5,270
13,412
562.286
(154.186)
268,540
50,670
(8.762) 21,538 (34,976)
335,156 370.132
$ 326,394 335.156
82
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Woodland Acres Street Light Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the vear ended June 30,'_'004)
Revenues:
Investment income
Expenditures:
General and administrative:
Support goods and services
Capital outlay
Total expenditures
Deficiency of revenues under
expenditures
Fund balances, at beginning of year
Fund balances, at end of year
Variance
positive
Budget Actual (negative)
$ 1,000 480 (520)
4,030
5,475
(1,445)
970
—
970
5,000
5,475
(475)
$ (4,000)
(4,995)
(45)
'_3.706
$
18,711
?004
Actual
270
5,448
5,448
(5,178)
?8.884
'3,706
S,
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Kodiak Arts Council
Schedule of Revenues. Expenditures, and Changes in Fund Balances (Deficits)
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the vear ended June 30. 2004)
84
Variance
positive
2004
Budget
Actual
(negative)
Actual
Revenues:
Licenses, permits, fees, and other
local services:
Reimbursement from Kodiak
Arts Council
$ 56,910
56,704
(206)
53,838
Total revenues
56,910
56,704
(206)
53,838
Expenditures:
General and administrative:
Personnel services
44,410
45,874
(1,464)
44,411
Fringe benefits
12,500
12,294
206
9,427
Support goods and services
—
490
(490)
434
Total expenditures
56,910
58.658
(1,748)
54,272
Deficiency of revenues
over expenditures
$ —
(1,954)
(1,954)
(434)
Fund balance (deficit), at beginning of year
(434)
—
Fund deficits, at end of year
$
(2.388)
(434)
84
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Tourism Development
Schedule of Revenues. Expenditures, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the vear ended June 30. 2004)
Revenues:
Transient accommodations tax
Investment income
Total revenues
Expenditures:
Community development:
Contributions
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances, at beginning of year
Fund balances, at end of year
Budget
$ 45,000
45.000
45,000
Variance
85
positive
2004
Actual
(negative)
Actual
20,886
(24.114)
56.177
25
25
355
20.911
(24,089)
56,532
45,000
—
45,000
45.000
—
45,000
(24,089)
(24,089)
11,532
85
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Trinity Acres Street Lighting District
Schedule of Revenues, Expenditures, and Changes in Fund Balances (Deficits)
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the year ended June 30, 2004)
2004
Actual
3,599
3.599
585
1,099
7,500
9,184
(5,585)
(5,585)
86
Variance
positive
Budget
Actual
(negative)
Revenues:
Property taxes $
3,600
3,721
121
Proceeds from issuance of loans
7,260
—
(7,260)
Total revenues
10,860
3,721
(7,139)
Expenditures:
General and administrative:
Personnel services
655
—
655
Support goods and services
2,030
1,773
257
Capital outlay
8,175
—
8,175
Total expenditures
10,860
1,773
9,087
Excess (deficiency) of revenues
over expenditures $
—
1,948
1,948
Fund balance (deficit), at beginning of year
(5,585)
Fund deficits, at end of year
$
(3,637)
2004
Actual
3,599
3.599
585
1,099
7,500
9,184
(5,585)
(5,585)
86
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Mission Lake Tide Gate
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the year ended June 30, 2004)
87
Variance
positive
2004
Budget
Actual
(negative)
Actual
Revenues:
Property taxes $
2,460
2,456
(4)
2.463
Proceeds from issuance of loans
29,890
—
(29,890)
—
Other
20,000
—
(20,000)
10,000
Total revenues
52,350
2.456
(49,894)
12.463
Expenditures:
General and administrative:
Personnel services
1,000
3,941
(2,941)
4,624
Professional services
—
715
(715)
—
Support goods and services
200
1,354
(1,154)
184
Capital outlay
51,150
—
51,150
—
Total expenditures
52,350
6,010
46,340
4,808
Excess (deficiency) of revenues
over expenditures $
—
(3,554)
(3,554)
7,655
Fund balances, at beginning of year
7,655
—
Fund balances, at end of year
4,101
7.655
87
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fem Fuller Trust
Schedule of Revenues, Expenditures. and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the year ended June 30. 2004)
Revenues:
Fuller trust proceeds
Total revenues
Expenditures:
General and administrative:
Distributions to beneficiaries
Support goods and services
Total expenditures
Excess of revenues
over expenditures
Fund balances, at beginning of year
Fund balances, at end of year
Budget
24,500
24,500
$ (24,500)
Variance
positive
Actual (negative)
75,000 75,000
75,000 75,000
22,500 2,000
52,453 76,953
200.1
Actual
171,042
171,042
24,500
X4.500
146,542
146,542
88
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Trinity Acres Paving
Schedule of Revenues, Expenditures, and Changes in Fund Balances (Deficits)
Budget and Actual
Year ended June 30. 2005
(With summarized financial information for the year ended June 30, 2004)
Revenues:
Special assessments
Total revenues
Expenditures:
Debt service:
Interest
General and administrative:
Support goods and services
Total expenditures
Deficiency of revenues
over expenditures
Other financing uses:
Transfers out to other funds:
Various Borough Projects
Net other financing uses
Deficiency of revenues over
expenditures and other
financing uses
Fund balances, at beginning of year
Fund balance (deficit), at end of year
Budget
$ 22,140
22,140
7,910
14,230
22,140
Variance
(216,508) (216,508) —
(216.508) (216.508) —
(216,733) (216,733) —
$ (216.733) —
89
positive 2004
Actual
(negative) Actual
—
(22,140) -
-
(22,140) —
—
7,910 —
225
14,005 —
225
21,915 —
(225)
(225) —
(216,508) (216,508) —
(216.508) (216.508) —
(216,733) (216,733) —
$ (216.733) —
89
1
r
1
1
DEBT SERVICE FUNDS
7
1
Debt Service Funds are used to account for the payment of
principal, interest and related fees on all bonded debt except for
special assessment bonded debt accounted for in proprietary funds.
NONMAJOR CAPITAL PROJECTS FUNDS
The Various Borough Projects Fund accounts for general
government construction projects not accounted for in other funds.
The State Capital Grants Fund accounts for capital impro\
projects relating to grants received from the State of Alaska.
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Fund - State Capital Grants
Balance Sheet
June 30. 2005
(With summarized financial information at June 30, 2004)
Assets
Receivables:
Due from federal government
Due from other funds
Due from State of Alaska
Total
Liabilities and Fund Balances
Liabilities:
Accounts payable
Retainages payable
Due to other funds
Total liabilities
Fund balances:
Unreserved (deficits):
Undesignated
Total fund deficits
Total
See accompanying independent auditors' report.
2005
$ 6,355
248,832
$ 255,187
$ 35,760
22,270
301,650
359.680
(104,493)
(104,493)
$ 255,187
2004
6,750
2,442
284,707
293,899
100,944
22,270
268,768
391,982
(98.083)
(98,083)
293,899
93
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Fund - State Capital Grants
Statement of Revenues, Expenditures, and Changes in Fund Deficits
Year ended June 30, 2005
(With summarized financial information at June 30, 2004)
Revenues:
State sources
Federal sources
Total revenues
Expenditures:
Capital improvements:
Schools
General
Total expenditures
Deficiency of revenues under
expenditures
Fund deficits, at beginning of year
Fund deficits, at end of year
See accompanying independent auditors' report.
2005
$ 331,093
187,012
518,105
12,717
511,798
524,515
(6,410)
(98,083)
$ (104,493)
2004
344.325
45.046
389.371
31,509
415.455
446.964
(57,593)
(40.490)
(98,083)
94
r m r r m m m= m i m m m m m m m m m
KODIAK ISLAND BOROUGH
Noomajor Capital Projects Foods
Schedule of Capital Projects
Year ended June 30, 2005
M
1
F.ncundrrances
Appropriations
Total
Expenditures
Total
flpcxpcudcd
Curreul
unencumbered
Project
Status
p riot Lot*
appropriations
ten 2
or
01(5
expenditures
balance
encundrrauces
balance
nu.
Project
101(X)
(apical p"ol"ls
110.696
- Educations
School Repair KI IS Roof
Opel $
126,770 -
126,770
80.714
10,752
91,466
35.304
-
35, i(la
(0100
410 -484
Notching School
Complete
54,330 4 -
54,330
54,330
-
54,330
M I
410 -601
IIS Roof Repair
Complete
125,398 -
125,398
125,398
-
125.398
-
50,000
-
-
50,1X0
0411X1
410 487
Weatheiproof Iliph School
Complete
- 50,000 -
50,000
-
-
-
78,880
1,120
-
1,120
MMI
410488
IRMA('IicketInstall
Complete
80.000 -
80,0(X)
78,880
-
10(1.000
-
I(X),(XX)
01101
410 -489
KHS Asbestos /C'agel
Complete
100.(0) -
I()().((X)
50,000
-
37,859
-
-
-
37,859
12,141
-
t_ 2 ,141
01101
410.490
Fast ;aid Main Paint
Refinish (;y,) Floors
Open
Complete
50,M) -
60,000 -
(0,(X0
55,691
-
55,691
4,309
-
4.309
11.1104
().1105
410 -491
4111 -492
Noidislar Road /park design
Open
50,000 -
50,[X0
22,795
-
22,795
27.205
-
27,205
01106
410 491
KIIS Fmcrpency Generator
Open
50,(X0 -
50,000
-
-
-
50,M)
-
50,((X)
01107
410 -494
IRVIA roof cleaning and repair
Complete
20,0IX) -
20,0(0
20.000
-
20,000
139,446
-
(13,642)
-
-
(11.642)
03116
410 -509
School Upgrade
Opeo
125,804 -
125,804
53,917
139,446
55,503
-
-
55,503
(1,5861
-
( 1,586)
04117
410 511
Upgrad" /Repam Match
Open
53,917 -
-
0I too
41(1 485
Matching School
Complete
53.742 -
53,742
53,742
1,533369
-
-
53,742
1,533,369 r
-
(3,3691
T
M M
4 i lO
Series G Bond HS Rnot Rcpan
Open
1,539,1X0 -
1 530,000
968.106
771,737
-
771,737
196.369
-
196.169
(11 015
410 60i
Scties I Bond IIS Root Repair
Olen
968,106 -
6.210,0(X1
58,409
7,311
65,720
6,144,280
-
6044.280
04119
4_ -5(0
I IS Swiuunmp Pool
Open
6.210.000 -
0'1(J8
410.60_
IIS Rcpaits \late h ht g Gran t t SIaIc l
Complete
124,471 -
124,471
124,471
-
124.471
-
4,2(X1
--
-
-
4.2(X1
14O
410 655
Fast Il"n.entary 1)oo-aN
Open
4.210 -
4.200
20.000
-
6,721
-
1,965
-
8.686
11,314
-
11,314
01118
410 i12
Chutak Multi -lJ se
Hafior Gym Renovation
Open
Open
20,000 -
2,251,315 -
2,251.315
430
-
430
2250,885
-
2_250.885
N/A
4_
Old
Olen
339,883 -
339,883
358
-
358
339.525
-
139525
4102
4_
420 317
L :nscnBay - SchoolRepair
Ouiinkie Gant Renovation
Open
1,858.255 -
1,858,255
647
-
047
1,857,08
-
1,857.608
4103
11,
410 486
IIS Repwrs Marching Gram (KIB)
Complete
53,345 -
53,345
53,596
-
53,596
(251)
-
(251 )
0,5(X)6
410 545
IIS Pool Filler
Open
00,000 -
60,(1(X)
-
49,698
49,698
10,302
21,044 ,
(10.742)
0i(X)')
4_ -its
Repair Spelling Coocrete
Olen
237,918 -
237.918
-
-
-
2371918
-"
2,17.918
05010
420 515
KITS Aslwslos Hoor Removal
Open
3(9.704 -
304,704
-
-
-
304.704
725.708
--
-
.104,704
725,708
0SM 1
420 -515
Hoot Covering Replacement
Open
725,708 -
725,708
-
-
-
250,((X)
--
250,(XX)
0501]
4_ -515
Kaiak illgh School IIVAC
Oleo
250,(X0 -
250.0(X)
-
-
-
596.020
-
596-11,
051111
4311 -515
KHS Exterior insulation &Windows
Open
596,020 -
596,020
-
-
-
523,5(4
-
523,504
05014
420 -515
Kodial, IIS /MS Cplx Roof Upprade
Open
523,504 -
523,504
-
-
-
4,191100
--
4,190,(X X)
05015
4_ -515
HS Vov ed /class"oom Reclaimanon
Open
4.190,0(1) -
4,190,(X0
-
-
-
52(1,((X)
--
52O.(XX)
05011,
4_'1) 515
Fasl F.lemenla,y IIVAU Itpgrade
Open
520,000 -
5201M
-
-
-
1.182.336
-
1.182.136 -
05017
420 -515
Leaning Cculcr Renovation
Olen
1,182.336 -
1,182,336
-
-
-
65000
650,(X8)
DsMS
4`11 -515
IIS Pohl Reclaimanon
Olen
650,0(0 -
650,(X0
-
-
-
Total educiloon
23599,726
23, 599,726
3,274,096
69,726
3.343,822
20,255,904
21.044
20.214,8(.4)
(X11)'
t - :grital la ojccts
410 -698
- I'tilines
E)uy side Uodcrprnund Electric
Open
22.(X0 -
22(X0
-
-
-
220X)
-
22,1(X)
182
4to -692
Some Fail and Rodeo Wuter
Open
25, 00 -
25.W0
24.024
976
25,(X0
--
--
-
Tocd utility projects
47,000 -
47,(X0
24,024
976
25.1X0
2208)
12.((X1
03115
t'apitnl pt ojrcic
- hearth:
hospital Assessment Needs
Olen
54.000 -
54,0(0
-
-
-
54,M)
-
5400
Total health projects
54.000 -
54,(X0
-
-
--
54.1(0
--
541X0
M
KODIAK ISLAND BOROUGH
Nonmajor Capital Projects Funds
Schedule of Capital Projects
Year ended June 30. 2005
Encundrrances
Project
Approprialioru
Total
Expenditures
Total
Unexpended
Current
Unencumbered
off.
Project
status
nor i1x
appropriations
- - Prior
27X15
expenditures
baLmce
eocmnbratces
ba4urce
Capital projects
- Other:
N/A
410 -400
I Indesignated Projects
Open $
692.078 —
692.078
18,539
—
18639
673,539
—
673,539
85
410 -471
Village Metals Removal
Open
150,000 —
150,000
120,994
262
121,256
28,744
—
28.711
105
410 -482
Autos Larsen Dock
Opeu
140,000 —
140,000
139,612
1,750
141.362
(1.362)
—
(1.362)
114
4106X2
State Aiiporl Improvements
Open
ILIU) —
IISX0
(0
—
60
10.940
—
10,940
45007
410 -546
Mission Lake 7 ide Gate
Complete
55,000 —
55,000
—
52,880
52,880
2,120
—
2.120
133
410 -658
Red Cross Building Repairs
Open
12.000 —
12,000
11,203
—
11,203
797
—
797
142
430 -(r42
Clean Water Fund /Kau luk
Complete
50.000 —
50.000
23,192
—
23,192
26.808
—
26,808
1 13108
410 495
Borough Building Parking
Open
50,000 —
50,0(X)
—
—
—
50,000
—
50,(KK)
111109
410 496
11 nigh Air Handling
Open
10,000 —
100x)
—
—
—
I0,(KK)
—
1000
031111
410 -497
K113 emergency Generator
Open
20,00(.) —
20,0(70
2,353
—
2,353
17,647
—
I7.647
43111
410 -498
K)B Security Doors
Open
8.000 —
800
—
—
—
8.000
—
8.(XX)
01114
430.507
CIAP Grant
Open
189.985 —
189,985
55,549
19,759
75,308
114,677
—
114.677
(51X)1
410 -546
Survey l Optic Pass "I'lot
Open
2,473,699 —
2.473,699
—
2,403,507
2,403,507
70,192
—
70.192
05!X1'
4_'051'1
Gailhyuake Cvalualion Project
Open
500,(X)o —
500,000
—
48,081
48,081
451.919
168.558
283,361
(151X13
411E S4_'
Kodiak('adastral
Open
400X) —
40.M)
—
55,877
55,877
(15,8771
—
(15.877)
05(X15
410 -544
AK Coastal Management
Open
46.000 —
46.00
—
46,000
46,000
—
—
146
410 -663
BMX Bike -find
Open
68.920 —
68,920
49.278
—
49,278
19,642
—
19.642
1 i9
410675
Bon,ugh larks
Open
26,500 —
26,500
27,106
—
27,106
(600)
—
((06)
164
430 (45
Waite Management h,,p
Open
1,741.4())
— 1.741,4(X)
664,751
271,963
936,714
804.686
—
804.696
160
430-649
Clean Witter Kaduk
Complete
350,000 —
350,(X0
89,189
—
89,189
2(0,811
--
2(X).811
173
410 -683
Bayside Classnwm Add
Open
75,000 —
75,000
48,199
—
48,199
26.801
—
26.801
174
410 684
13ayside Storage /Bay Add
Open
400.000 —
400,00
3,020
—
3,020
396,980
—
396.980
177
430687
Ali( OII Liusen Boat Ramp
Open
560.000 —
560,0(X)
595.407
—
595,407
(35,407)
10,960
(46367)
184
4 }(1.604
Oil Spill Response Lrluip
Open
400.(X0 —
4(X)1XX)
399,411
—
399,411
589
—
589
(X)104
430609
"I'ideG;tie
Open
20,000
— 20,000
20.000
1,080
21,080
(1,080)
—
(1,080)
(X)106
410 -00
MIS Study
Complete
30,000 —
30.000
29.983
—
29,983
17
—
17
01106
430 -625
Volunteer Fire Assistance Program
Complete
3,699
— 3,699
3,699
—
3,699
—
— `
— 1
0_
430 -648
ADF&-G Research Study
Open
200,000 —
200,000
112.250
2,045
114,295
85,705
—
95.705
N/A
410 (,24
Women's Hay Comm my Plan
Open
33.380 —
33.380
22,380
—
22.380
1 LUX)
--
1 1.(X)(1
N/A
430 -542
Woneds l3ay Drainage
Open
— —
—
—
19,630
19.630
(19.630)
--
(19.631)
0308
430518
1lomcland Security
Open
— —
—
—
—
—
—
4104
410 -701
TrinityPa,ingRoad
Open
— —
—
215,508
1,001
216.509
(216.509)
—
1216.5091
4106
N/A
SIISGPGr:m(
Open
138.151
— 138.151
7,105
45,746
52.851
853(X)
—
857(X)
02110
410 -506
(JS Sind)
Open
20.000
20,000
20,276
20,276
(276)
(276)
fond - capital projects other
8,514,812
8,514,812
2,679,064
2.969.581
5,648,645
2,866.167
179,518
2,686,649
Total all capital projects
$
32,215,538
32,215,538
5,977,184
3,040,283
9,017,467
23,198.071
200.562
22.997.509
96
1
I
1
F�
1
E
I
1
r�
I
ENTERPRISE FUNDS
Enterprise Funds are used to account for Borough operations that
are financed and operated in a manner similar to private business
enterprises. The intent of the Borough is that the costs (expenses,
including depreciation) of providing these services to the general
public on a continuing basis are financed or recovered primarily
through user charges.
KODIAK ISLAND BOROUGH
Municipal Solid Waste Collection and Disposal Fund
Schedule of Revenues. Expenses, and
Changes in Fund Equity
Budget and Actual
Year ended June 30. 2005
(With summarized financial information for the year ended June 30. 2004)
Operating revenues:
Solid waste collection
Solid waste disposal
Other
Operating expenses:
Personnel services
Refuse collection
Refuse disposal
Professional services
Repairs and maintenance
Landfill closure and postclosure costs
Depreciation
General and administration
Contributions
Recycling services
Operating income (loss)
Other income (expense):
Interest income
Interest expense
Change in fund equity
Fund equity, beginning of year
Fund equity, end of year
See accompanying notes to financial statements.
3,345,656
$ 3,160,795
J,JTJ,VJV
97
2005
Variance -
favorable
2004
Budget
Actual
(unfavorable)
Actual
$ 2,210,300
2,184,612
(25.688)
2.25 1,245
1,111,000
956,087
(154,913)
951,789
8,000
1,157
(6.843)
6.742
3,329,300
3,141,856
(187.444)
3.209,776
570,120
596,385
(26,265)
497,113
1,328,000
1,418,830
(90,830)
1,324,943
306,000
355,995
(49,995)
230,639
190,000
207,282
(17,282)
152,837
30,000
35,505
(5.505)
27,909
175,000
255,498
(80,498)
246,929
258,000
208,330
49,670
259,800
206,580
153,555
53,025
189,442
-
9,853
(9,853)
5,445
75,000
73,001
1,999
68,506
3,138,700
3,314.234
(175,534)
3,003,563
190,600
(172,378)
(362,978)
206,213
5,000
35,631
30,631
7,114
-
(48,114)
(48,114)
(47,564)
$ 195,600
(184,861)
(380,461)
165,763
3,345,656
$ 3,160,795
J,JTJ,VJV
97
KODIAK ISLAND BOROUGH
Hospital Facilities Fund
Schedule of Revenues, Expenses, and
Changes in Fund Equity
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the year ended June 30. 2004)
See accompanying notes to financial statements.
98
2005
Variance
favorable
2004
Budget
Actual
(unfavorable)
Actual
Operating revenues:
Lease income
720,000
1,153,333
433,333
792,224
Donations
—
—
—
1,305
720,000
1,153,333
433,333
793,529
Operating expenses:
Personnel services
—
6,969
(6,969)
7,002
Professional services
—
—
—
(7,977)
Depreciation
1,276,560
1,238,064
38,496
1,261,302
Maintenance and repairs
—
19,360
(19,360)
28,398
General and Administration
—
10,810
(10,810)
—
1,276,560
1,275,203
1.357
1,288,725
Operating loss
(556,560)
(121,870)
434,690
(495,196)
Other income (expense):
Interest income
—
84
84
Interest expense
(82,000)
(69,784)
12,216
(80,419)
Contribution to the State of Alaska
—
—
—
(1,170,000)
Contribution to Providence Hospital
—
—
—
(130,000)
Loss before transfers
(638,560)
(191,570)
446,990
(1,875,615)
Other financing sources (uses):
Transfers in
—
125,000
125,000
—
Transfers out
(295,602)
(295,602)
—
(1,644,560)
Net other financing uses
(295,602)
(170,602)
125,000
(1,644,560)
Change in fund equity
$ (934,162)
(362,172)
571
(3,520,175)
Fund equity, beginning of year
18,653,348
22,173,523
Fund equity, end of year
$
18,291,176
18,653,348
See accompanying notes to financial statements.
98
KODIAK ISLAND BOROUGH
911 Services Fund
Schedule of Revenues. Expenses, and
Changes in Fund Equity
Budget and Actual
Year ended June 30, 2005
(With summarized financial information for the year ended June 30. 2004)
Operating revenues:
Customer charges
Operating expenses:
Personnel services
Telephone services
Change in fund equity
Fund equity, beginning of year
Fund equity, end of year
Budget
$ 69,000
10,500
58,500
69,000
See accompanying notes to financial statements.
Variance
99
favorable
2004
Actual
(unfavorable)
Actual
26.721
(42.279)
101,435
3,000
7,500
9.000
66,178
(7,678)
71,427
69,178
(178)
80,427
(42,457)
(42,457)
21,008
75,101
54,093
$ 32,644
75.101
99
KODIAK ISLAND BOROUGH
Kodiak Fisheries Research Center Fund
Schedule of Revenues. Expenses, and
Changes in Fund Equity
Bud and Actual
Year ended June 30. 2005
(With summarized financial information for the year ended June 30. 2004)
Operating revenues:
Rents and royalties
Operating expenses:
Personnel services
Employee benefits
Miscellaneous
Depreciation
Cleaning and janitorial
Heating
Electrical
Plumbing
Air conditioning
Elevators
Operating income
Other income:
Investment income
Interest expense
Change in fund equity
Fund equity, beginning of year
Fund equity, end of year
See accompanying notes to financial statements.
11
200-5
Variance
favorable
2004
Budget
Actual
(unfavorable)
Actual
$ 1,589,700
1,566,686
(23,014)
1.559.600
97,350
169,219
(71.869)
155.677
54,590
57,098
(2,508)
45,445
202,510
67,328
135,182
80,774
744,114
793,562
(49,448)
745,259
47,000
37,487
9,513
35,079
87,000
114,966
(27,966)
80,683
185,500
156,285
29,215
157,537
77,240
13,643
63,597
12,795
2,000
-
2,000
19
2.000
2,387
(387)
1,991
1,499,304
1.411,975
87.329
1,315.259
90,396
154,711
64,315
244,341
40,000
35,097
(4,903)
16,863
(466,820)
(466.813)
7
(485,713)
$ (336,424)
(277,005)
59,419
(224,509)
11,407,225
11,631, 734
$
11,130,220
11,407,225
See accompanying notes to financial statements.
11
SUPPLEMENTARY SCHEDULES
KODIAK ISLAND BOROUGH
Summary of Bonded Debt Service Requirements to Maturity
June 30. 2005
Annual principal and interest requirements on General Obligation Refunding and Construction Bonds.
Year Principal Interest Total
2006
$ 1,810,000
1,356,906
3.166,906
2007
2.095,000
1.331,714
3.426.714
2008
2,200.000
1,260.451
3.460,451
2009
2.290,000
1.166.851
3.456,851
2010
2,385,000
1,069,206
3.454,206
2011
2,490.000
967,194
3.457,194
2012
2,235,000
858,176
3.093,176
2013
2,325,000
766,071
3.091,071
2014
2,425,000
671.261
3,096,261
2015
980,000
569,821
1,549.821
2016
1,020,000
530,621
1,550,621
2017
1,055,000
489,351
1,544,351
2018
1.105,000
445,939
1,550,939
2019
1.150,000
400,209
1.550,209
2020
1.205,000
348.989
1,553,989
2021
1.255,000
294,764
1.549,764
2022
1,310,000
238.289
1,548,289
2023
1.375,000
178,583
1,553,583
2024
1,440,000
111,420
1.551,420
2025
815,000
40.750
855,750
$ 32.965,000
13,096.566
46,061,566
KODIAK ISLAND BOROUGH
General Obligation Refunding Bonds, 1998 Series A
Retirement Schedule
1998 Bond Issue
This issue, dated December 7, 1998, was issued under a book entry system registered in the name
of Cede & Company, as Nominee of The Depository Trust Company, New York. New York. the securities
depository for the 1998 Bonds. The financial advisor for this issue was Kaplan Financial Consulting. Inc. Legal
opinion was rendered by bond council, Birch, Horton, Bittner, and Cherot. The paying agent for this issue was
Alaska USA Trust Company. These bonds were issued to refund all but $1,030,000 of the 1994 bond issue.
This resulted in a total interest savings of $504,859.
Fiscal year
2006
2007
2008
2009
2010
2011
2012
2013
2014
Interest rate
4.00%
4.00%
4.30%
4.30%
4.30%
4.30%
4.30%
4.30%
4.30%
Interest
due
August 15
$ 199,448
198,248
197,048
172,323
146,523
119,648
91,590
62,350
31,820
$ 1,218,998
Principal
due
February 15
60,000
60.000
1,150,000
1,200,000
1,250,000
1,305,000
1,360,000
1,420,000
1,480.000
9,285,000
Interest
due
February 15
199,447
198.248
197,047
172,322
146,522
119,647
91,590
62,350
31,820
Total
458,895
456,496
1,544,095
1,544,645
1,543,045
1,544,295
1,543,180
1,544,700
1,543,640
1.218,993 11,722,991
102 1
KODIAK ISLAND BOROUGH
General Obligation Bonds, 2000 Series E
Retirement Schedule
2000E Bond Issue
This issue. dated December 12, 2000, was issued under a book entry system registered in the name
of Cede & Company, as Nominee of the Depository Trust Company. New York. New York. the securities
depository for the 2000 Series E Bonds.
This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council.
Wohlforth, Vassar, Johnson & Brecht of Anchorage. Alaska.
This bond was issued to repair the high school roof. The high school roof repair is scheduled to be completed
by the fall of 2001.
3 2StS,1J1 9/J,000
Total
193,200
191,312
194,000
191,000
192,750
189,000
88,131 1,151,262
103
Interest
Principal
Interest
due
due
due
Fiscal year
Interest rate
August 1
February 1
February 1
2006
4.75% $
24,100
145,000
24,100
2007
5.00%
20,656
150,000
20.656
2008
5.00%
17,000
160,000
17,000
2009
5.00%
13,000
165,000
13,000
2010
5.00%
8,875
175,000
8,875
2011
5.00%
4,500
180,000
4,500
3 2StS,1J1 9/J,000
Total
193,200
191,312
194,000
191,000
192,750
189,000
88,131 1,151,262
103
KODIAK ISLAND BOROUGH
General Obligation Bonds. 2000 Series F
Retirement Schedule
2000F Bond Issue
This issue, dated December 12. 2000, was issued under a book entry system registered in the name
of Cede & Company, as Nominee of the Depository Trust Company, New York, New York, the securities
depository for the 2000 Series F Bonds.
This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council,
Wohlforth, Vassar, Johnson & Brecht of Anchorage, Alaska.
This bond was issued to upgrade Peterson Elementary. The Peterson Project has already been completed.
Fiscal year
2006
2007
2008
2009
2010
2011
Interest rate
6.90%
7.00%
7.00%
7.05%
7.109
7.15%
Interest
Principal
Interest
due
due
due
August 1
February 1
February 1
Total
$ 28,525
110,000
28,525
167,050
24,730
120,000
24,730
169.460 .
20,530
130,000
20,530
171,060
15,980
140,000
15,980
171,960
11,045
150,000
11,045
172,090
5,720
160,000
5,720
171,440
$ 106,530
810,000
106,530
1,023,060
104
KODIAK ISLAND BOROUGH
General Obligation Bonds. 2003 Series A
Retirement Schedule
2003A Bond Issue
This issue, dated March 26, 2003, was issued under a book entry system registered in the name
of Cede & Company, as Nominee of the Depository Trust Company. New York. New York. the securities
depository for the 2003 Series A Bonds.
This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council,
Wohlforth, Vassar, Johnson & Brecht of Anchorage, Alaska.
This bond was issued to establish an escrow fund sufficient to refund $1.920.000 outstanding principal amount of
the Borough's General Obligation Bonds, 1993 Series A. and $1.030,000 outstanding principal amount of the
Borough's General Obligation Bonds, 1994 Series A.
Fiscal vear
2006
2007
Interest rate
2.50%
2.63%
Interest
Principal
Interest
due
due
due
August 1
February 1
February 1
$ 26,081
1,005,000
26,081
13,519
1,030,000
13,519
$ 39,600
2,035,000
39,600
Total
1,057,162 '
1,057,038
2,114,200
105
KODIAK ISLAND BOROUGH
General Oblivation Bonds. 2004 Series A
Retirement Schedule
2004 A Bond Issue
This issue, dated July 7, 2004, was issued under a book entry system registered in the name
of Cede & Company. as Nominee of The Depository Trust Company, New York. New York, the securities
depository for the 2004 A Bonds. The financial advisor for this issue was Western Financial Group. LLC. Legal
opinion was rendered by bond council. Wohlforth, Vassar, Johnson & Brecht. The paying agent for this issue was
J.P. Morgan Trust Company. These bonds were issued to provide for the costs of planning, design. and
construction of capital improvements to schools within the Borough and to the development of an earthquake
evacuation plan.
Fiscal year
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Interest rate
5.00%
5.00%
4.25%
4.25%
4.25%
4.25%
4.25 %n
4.25%
4.00%
4.00%
4.00%
4.10%
4.25%
4.30%
4.40%
4.50%
4.50 %r
4.63%
4.75%
4.80%
Interest
due
January I
$ 182,348
192,892
185,142
178,236
171,011
163,573
155,817
147,636
139,136
130,836
122,135
113,135
103,501
93,194
82.229
70.569
58,082
45.03'
31,04I
15.960
Principal
due
July 1
490,000
310,000
325.000
340,000
350,000
365.000
385,000
400,000
415,000
435,000
450,000
470,000
485.000
510,000
530.000
555.000
580.000
605.000
635.000
665,000
S 2.381.505 9.300.000
Interest
due
July 1
205,142
192,892
185,142
178,236
171,011
163,573
155,817
147,636
139,136
130,836
122,135
113,135
103,501
93,194
82,229
70.569
58,082
45,032
31,041
15,960
2,404,299
Total
877,490
695.784
695,284
696.472
692.022
692,146
696,634
695,272
693,272
696,672
694,270
696,270
692,002
696,388
694,458
696,138
696,164
695,064
697,082
696,920
14.085.804
106
KODIAK ISLAND BOROUGH
General Obligation Bonds, 2004 Series B
Retirement Schedule
2004 B Bond Issue
This issue, dated November 16, 2004, was issued under a book entry system registered in the name
of Cede & Company, as Nominee of The Depository Trust Company. New York. New York, the securities
depository for the 2004 B Bonds. The financial advisor for this issue was Western Financial Group, LLC. Legal
opinion was rendered by bond council, Wohlforth, Vassar, Johnson & Brecht. The paying agent for this issue was
J.P. Morgan Trust Company. These bonds were issued to provide for the costs of construction and improvements
to the Kodiak High School and the construction of a community swimming pool.
107
Interest
Principal
Interest
due
due
due
Fiscal vear
Interest rate
Mav 1
November 1
November 1
Total
2006
3.00% $
414,815
180,000
-
594,815
2007
3.00%
223,563
410,000
223,563
857,126
2008
3.00%
217.413
420,000
217.413
854,826
2009
3.00%
211,112
435,000
211,112
857,224
2010
3.00%
204,587
445,000
204,587
854,174
2011
3.50%
197.912
460,000
197,912
855.824
2012
3.50%
189,862
475,000
189,862
854,724
2013
3.50%
181,550
490,000
181,550
853,100
2014
4.00%
172,975
510,000
172,975
855,950
2015
4.00%
162.775
530,000
162,775
855,550
2016
4.00%
152,175
550,000
152.175
854,350
2017
4.00%
141,175
570,000
141,175
852,350
2018
4.00%
129,775
595,000
129,775
854,550
2019
4.50%
117,875
620,000
117,875
855,750
2020
4.50%
103.925
650,000
103,925
857,850
2021
4.50%
89,300
675,000
89,300
853,600
2022
4.50 %r
74,113
705.000
74,113
853,226
2023
5.00 %r
58,250
740.000
58,250
856,500
2024
5.00%
39.750
775,000
39.750
854,500
2025
5.00 %r
20.375
815.000
20375
855,750
$
3,103,277
11.050,000
2,688.462
16.841,739
107
1
1
L�
STATISTICAL SECTION
i
Statistical Tables provide report users with a better historical
perspective in assessing current financial status and trends of
the Borough.
7
u
KODIAK ISLAND BOROUGH
Kodiak. Alaska
General Governmental Expenditures
and Other Uses by Function (a)
Last Ten Fiscal Years
Fiscal
General
Health and
year
government
sanitation (b)
1996
$ 2,941,453
1,390,307
1997
2,664,204
1,393.016
1998
2,848,474
1.506.992
1999
2,733,502
1.179,420
2000
2.540,354
730,888
2001
2,993,718
594,072
2002
3,027,097
280,847
2003
4,901,264
286.095
2004
2,472,563
257.037
2005
3,162,937
254,313
Other
Education (b)
transfers
Total
4,678,830
267.594
9,278.184
5.083,942
250,000
9.391,162
6.466,321
571.296
11,393,083
7,044,970
—
10,957.892
6,500.341
55.905
9.827,488
6.824,276
323,299
10,735,365
7,363,880
55.034
10.726,858
7,404,122
480,476
13,071,957
7,885,193
399,290
11,014,083
8,100,370
—
11,517,620
(a) Includes general fund only.
(b) Includes operating transfers for this function
Source: Borough general ledger
108
KODIAK ISLAND BOROUGH
Kodiak. Alaska
General Revenues by Source (a(
Last Ten Fiscal Years
(a) Includes general fund only
Source: Borough general ledger
ME
Licenses,
Inter -
Fiscal
permits,
governmental
Investment
Operating
Miscellaneous
year
Taxes
and fees
revenue
income
transfers
revenue
Total
1996
S 5.693,539
285.100
2,396.704
452.196
—
—
8.827.539
1997
5,582,037
108.483
2.396 272
371.414
9,672
—
8.467.878
1998
7.589.595
86.138
2,739.075
333,243
—
—
10,748.051
1999
7,694,387
86.523
2,055.803
238.515
32.632
—
10,107,860
2000
8,057,781
92,609
1,770.038
358,351
129,829
—
10.408.608
2001
8,135,184
95.129
2,135,483
583,633
18,154
44.945
11.012.528
2002
8.017.344
95,857
3,397.240
294,675
200,000
140.901
12,146.017
2003
8,028,513
153,727
2,683,460
171,532
1,000.000
—
12,037 232
2004
8,165,326
187,898
2,010.431
105,812
850.000
—
11.319,467
2005
9,378,816
161,621
1,925,405
265,392
—
—
11,731.234
(a) Includes general fund only
Source: Borough general ledger
ME
KODIAK ISLAND BOROUGH
Kodiak. ALis:a
Property Fax Les ies and Collections
Last Ten Fiscal Years
Percent of
Percent of
Percent of
current
Delinquent
total tax
Outstanding
delinquent
Fiscal
Total
Current tax
levy
tax
Total tax
collections
delinquent
taxes to
'
tear
tax levy
collections
collected
collections
collections
to tax levv
taxes
tax levy
1996
S 5.466.066
5.249.168
96.0
S 56.531
5.305.699
97.1 S
'89._10
5.3
1997
5.576.773
5.478.939
98.2
96.490
5.575.4'9
100.0
192.72'
35
'
1998
7.384,490
7,131.678
96.4
77.576
7.199.254
97.5
381.180
5_2
1999
7.704.172
7,575.491
98.3
314.367
7,889.858
102.4
234.738
3.0
2000
7.743.649
7.507.018
96.9
175,066
7.682.084
992
316.452
4.1
2001
8.164.127
7.912.859
96.9
204.458
8.117.317
99.4
364.044
4.5
2002
8.411.173
8.313.881
98.8
362.37
8,676.258
103.2
292,823
3.5
2003
8,395.117
8.167,437
97.3
178.885
8.346.322
99.4
312.925
3.7
2004
8,462.404
8.125.629
96.0
69.831
8.195,459
96.8
386.801
4.6
1
2005
8.785.412
8.139.198
92.6
288.394
8.427,592
95.9
34.1.309
19
Source: Borough general ledger
lit
KODIAK ISLAND BOROUGH
Kodiak. Alaska
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Source: Borough assessment and tax records and State full value determination
Last Ten Years Assessed Values
$1,000,000,000
$800,000,000
$600,000,000
$400,000,000
$200,000,000
$0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Ratio of
total
assessed to
Real
property
Personal
proper[",
Total
total
Fiscal
Assessed
Full value
Fussed
Assessed
Full value
Assessed
Full value
full value
year
value
determination
value
determination
value
determination
determination
1996
S 538,627,500
560,459,900
101,835.076
318.741,600
640.462.576
879 .201.500
72.85
1997
549.456,964
565 .281,400
104,677,687
312,465,100
654.134,651
877,746,500
74.52
1998
573,742,998
587,145,000
107,599.894
310.049,900
681.342,892
897.194,900
75.94
1999
577.551,709
599,696,900
109,304,683
297,058,600
686,856.392
896,755.500
76.59
2000
594,870.287
613,787,700
120,828,748
322,947,400
715.699.035
936,735,100
76.40
2001
626,906,341
641,419,200
121,849,192
336,548,600
748.755.533
977,967,800
76.56
2002
635,931,458
654,299,600
116,117,602
323,479,600
752.049,060
977,779,200
76.91
2003
642.995,612
679,949,700
117,456,245
323,755,200
760.451.857
1.003,704,900
75.76
2004
660,040,861
687,078,300
110,941,506
307,988,900
770,982,367
995,067 200
77.48
2005
678,425.914
731,267,000
105,481,537
300,735,600
783.907.451
1.032,002.600
75.96
Source: Borough assessment and tax records and State full value determination
Last Ten Years Assessed Values
$1,000,000,000
$800,000,000
$600,000,000
$400,000,000
$200,000,000
$0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Property Tax Rates and
Contributions to the School District
(per $100 of Assessed Value)
Last Ten Fiscal Years
Contributions to the School District
Fiscal
Assessed
Amount of
Millage
Year
Property Tax Rates
Contribution
Equivalent
1996
Woodland
Trinity
Mission
1997
654,134,651
4,839,887
7.40
Acres
Islands
Lake
8.39
1999
KIB
City
Street
Street
Tide
6,678.652
Fiscal
General
of
Lighting
Lighting
Gate
Monashka
year
Fund
Kodiak
Area
Area
Area
Bav
1996
6.75
2.00
0.50
-
-
1.75
1997
6.75
2.00
0.50
-
-
1.50
1998
6.75
2.00
0.50
-
-
1.50
1999
9.25
2.00
-
-
-
1.50
2000
9.25
2.00
-
-
-
1.50
2001
9.25
2.00
-
-
-
1.50
2002
9.25
2.00
-
-
-
1.50
2003
9.25
2.00
-
-
-
1.50
2004
9.25
2.00
-
0.50
1.00
1.50
2005
10.25
2.00
-
0.50
1.00
1.50
Contributions to the School District
Fiscal
Assessed
Amount of
Millage
Year
Value
Contribution
Equivalent
1996
$ 640,462,576
$ 4,574,068
7.14
1997
654,134,651
4,839,887
7.40
1998
681,342,892
5,715,361
8.39
1999
686,856,392
6,492,876
9.45
2000
715.699.035
6,678.652
9.33
2001
748,755.533
6,913,926
9.23
2002
752.049,060
7,550,506
10.04
2003
760,451,857
7.767,661
10.21
2004
770,982.367
8,498.082
11.02
2005
783.907,451
8.521.286
10.87
Source: Borouah ordinance and assessment
112
I
u
t
Road Services Areas
Womens Airport
Service
Bay View
Womens
District 1
Road
Bay
1.75
1.00
2.00
1.75
1.00
2.00
0.75
1.00
2.00
0.50
1.00
2.00
0.50
1.00
2.00
1.00
1.00
2.00
125
1.00
2.00
1.00
1.00
2.00
1.00
1.00
2.00
1.00
1.00
2.00
Fire Ar eas
Service
Womens Airport
Area No. 1
Bav Fire Protection
1.50
1.25 -
1.50
1.25 -
1.50
1.25 -
1.50
1.25 -
1.50
1.25 -
1.50
1.25 -
1.50
1.25 -
1.50
1.25 -
1.50
1.25 -
1.50
125 1.25
u
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Ten Largest Property Taxpayers
Year ended June 30, 2005
Source: Borough tax records
114
Percentage
Percentage
of total
Net
of total
assessed
Assessed
taxes
taxes
value
valuation
levied
levied
Ocean Beauty Seafoods Inc
2.0% $
15,473,723
127,295
1.373
Western Alaska Fisheries
1.4%
10,964,503
125,073
1.349%
Alaska Communications Systems
1.4%
10,850,252
117,704
1.270%
International Seafoods of Alaska
1.2%
9,623,410
111,561
1.203%
Afognak Native Corporation
1.2%
9,520,016
97,308
1.050%
Wal -Mart Real Estate Bus Trust
1.2%
9,387,188
97,194
1.048%
Mill Bay Plaza Assoc Ltd
0.9%
7,138,400
87,445
0.943%
Horizon Lines of Alaska, LLC
0.9%
7,121,465
85,043
0.917%
Brechan Enterprises, Inc.
0.9%
6,774,189
80,326
0.866%
Kodiak Fishmeal Company
0.9%
7,069,755
77,170
0.832%
Totals
12.0% $
93,922,901
1,006,119
10.9%
Source: Borough tax records
114
KODIAK ISLAND BOROUGH
Kodiak. Alaska
Ratio of Net General Bonded Debt
to Assessed Value and Net General Bonded Debt per Capita is
Last Ten Fiscal fears
Ratio
of net general
bonded debt
Less Debt
Net general
Fiscal
value
per capita
Assessed
Gross
Service
bonded
year
Population
2.7
value
bonded debt
Fund
debt
1996
15.400
(a) S
640.462,576
23 205,000
1.759.644
21.445.356
1997
14.058
la)
654.134,651
21.660,000
549.569
21.110.431
1998
14,181
(a)
681,342,892
20.020,000
432,942
19.587,058
1999
13.848
(a)
686,856.392
18,910,000
340.159
18.569,841
2000
13,989
(a)
715,699,035
17.025.000
272.651
16.752.349
2001
13.913
(a)
748,755,533
17,690.000
344,942
17,345.058
2002
14,167
(a)
752.049,060
16,615.000
448,065
16.166.935
2003
13,874
(a)
760,451,857
15.620.000
17.879
15.602.121
2004
13.811
(a)
770,982,367
14,385,000
33.915
14,351.085
2005
13,466
(b)
783.907,451
32,965.000
141,767
32,823,233
Ratio
of net general
bonded debt
Net general
to assessed
bonded debt
value
per capita
3.3 S
1.39;
3._
1.50_
'_9
1.381
2.7
1.3.31
'_.3
1.198
2.3
1.247
2.1
1,141
2.1
1.1'_5
1.9
1.039
4.2
2.437
Sources: Information obtained from assessment records and Borough general ledger except as otherwise noted
(a) Information obtained from State of Alaska. Department of Community and Regional Affairs, Certified Population for Revenue Sharing Program.
(b) Information obtained from State of Alaska. Department of Commerce, Community and Economic Development. Community Database.
115
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Computation of Direct and Overlapping Debt
June 30. 2005
Percentage
Kodiak Island
applicable to this
Borough
Net debt governmental
share of
outstanding (a) unit (b)
debt
Kodiak Island Borough:
General obligation bonds $ 32,965,000 100% $ 32.965.000
City of Kodiak:
Revenue bonds 820,000 100%
Total $ 33,785,000 $
(a) Gross debt outstanding less applicable amounts in the Debt Service Funds.
(b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to
valuation of property subject to taxation in reporting unit.
Sources: Borough general ledger and City of Kodiak records
820,000
116
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Computation of Legal Debt Margin
June 30, 2005
Assessed value S 783.907.451
Plus exempt property 32.491.840
Total S 816.399,291
Per Alaska Statute 29.45.090, there is a limit of 30 mills for ad valorem taxes.
Per Alaska Statute 29.45.100, the limitation on maximum mill rate does not apply to taxes levied to pay bonds.
I Source: Borough assessment records
t
117
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Ratio of Annual Debt Service Expenditures
for General Bonded Debt to Total
General Expenditures and Transfers
Last Ten Fiscal Years
Fiscal
Total
Interest
year
Principal (a)
and fees
1996
$ 2,480,833
1,386,681
1997
1,565,833
1,239,996
1998
1,660,833
1,141,366
1999
1,915,833
853.652
2000
1,905,833
858,164
2001
2,015,834
746,994
2002
1,095,833
853,543
2003
1,140,833
803,224
2004
1,255,833
667,744
2005
1,780,417
983,195
(a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of
term bonds.
Source: Borough general ledger and debt documents
Total
Ratio of
general
debt service
Total debt
expenditures
to general
service
and transfers
expenditures
3,867,514
9,278,184
41.7
2,805,829
9,391,162
29.9
2,802,199
11,393,083
24.6
2,769,485
10,957,892
25.3
2,763,997
9.827,488
28.1
2,762,828
10,735,365
25.7
1,949,376
10,726,858
18.2
1,944,057
13,071,957
14.9
1,923,577
11,014,093
17.5
2,763,612
12,027,717
23.0
(a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of
term bonds.
Source: Borough general ledger and debt documents
KODIAK ISLAND BOROUGH
Kodiak. Alaska
Demographic Statistics
Last Ten Fiscal Years
Fiscal
School
year
Population (a)
enrollment (b)
1996
15,400
2.872
1997
14,058
2,862
1998
14,181
2.851
1999
13,848
2,798
2000
13,989
2,810
2001
13,913
2,774
2002
14,167
2.821
2003
13,874
2.751
2004
13,811
2,704
2005
13,466
2,675
Sources:
(a) State of Alaska. DCRA certified population
(b) Kodiak Island Borough School District
(c) Department of Labor, Anchorage
Percentage
unemployment
rate (c)
14.5
9.1
5.0
5.1
13.4
10.9
18.2
10.3
10.6
9.5
119
KODIAK ISLAND BOR01
Kodiak. Alaska
Property Value. Construction. and Bank, Deposits
Last Ten Fiscal Years
* Assessed value.
Source: Borough assessing records. City of Kodiak building department and local bankers
Construction
Deposits
ommercial
Residential
Fiscal
o. o
No. of
banks
year
permits
Value
permits
Value
1996
41
5 3.862.599
160 $
7.864.907
1997
36
1.559.938
112
6.262.439
1998
39
16.676.612
149
8.103.624
1999
51
6.784,879
141
8.222.313
2000
54
2.720 259
156
9.086.074
2001
33
1,379.673
198
11.501.804
2002
30
1,494.337
190
10,439,985
2003
47
2.915.740
166
11,707,269
2004
44
2.859,775
179
14.798.679
2005
47
2,097.983
158
10.590,784
* Assessed value.
Source: Borough assessing records. City of Kodiak building department and local bankers
Property Value*
Deposits
in local
banks
Commercial
Residential
Nontaimble
108,116331
155,755.000
382.872.500
2.404,5 11.974
108.926,259
157.911.064
391.545.900
2.404.8i2.414
107.973.700
161,787.265
411.955.734
2.420.596.952
123.206.000
160,921.064
416,630.645
2.420.601.099
120.465,733
172,709,507
422.160.780
2.575.199399
119,637,923
193,882,996
433.023.355
2.475.199.399
117 241.908
199.689,615
443.305.997
1,994 297.555
129,546.701
206.386.964
463,419.197
1 996.235.045
128.062.000
207.611.182
480.581.831
1.736.191.891
135.302.541
210,328.700
482 244.145
1,666.526.546
* Assessed value.
Source: Borough assessing records. City of Kodiak building department and local bankers
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Miscellaneous Statistical Data
Last Ten Fiscal Years
Date of Incorporation - September 30, 1963
Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended
Form of Government - Mayor /Assembly
(a) The majority of Village Schools are grades K -12.
(b) Based on full -time equivalents.
(c) As of July 1, 1996. the City of Kodiak assumed ownership, maintenance, and operation of the existing water and sewer
utilities in the Service District.
Source: Borough records
121
1996
1997
1998
Land area - square miles
7.130
7,130
7,130
Miles of improved street
21.60
24.70
24.70
Building permits:
Permits issued
201
148
188
Value of buildings (thousands)
11,728
7,822
24,780
Fire protection:
Number of fire stations
2
2
2
Number of employees
1
1
1
Police protection - none
Recreation:
Parks - number of acres
224
224
224
Facilities:
Number of playgrounds
I6
16
16
Number of swimming pools
1
I
I
Education:
Number of schools:
City of Kodiak Elementary
4
4
4
City of Kodiak Junior High
1
1
1
City of Kodiak High School
1
1
1
Village Schools (a)
9
9
9
Number of personnel: (b)
Administration
6.0
6.0
5.2
Principals
12.0
11.7
11.4
Teachers
183.8
188.5
179.6
Technical
3.0
3.5
9.0
Clerical and Aides
61.7
63.7
72.7
Maintenance /Warehouse
12.0
9.0
10.0
Custodial
22.5
26.3
27.6
Food Service
3.7
4.2
6.3
Total number of personnel
304.7
312.9
321.8
Number of students
2,793
2,809.0
2,897
Number of municipal employees
63
63
50
Elections:
Number of registered voters
8,217
9,350
9,967
Number voting in last election
1.471
2,120
2,076
Percent of registered voters
17.9%
22.7%
20,8%
(a) The majority of Village Schools are grades K -12.
(b) Based on full -time equivalents.
(c) As of July 1, 1996. the City of Kodiak assumed ownership, maintenance, and operation of the existing water and sewer
utilities in the Service District.
Source: Borough records
121
1999
2000
2001
2002
2003
2001
2005
7,130
7.130
7.130
7,130
7.130
7.130
7,130
25.02
25.00
25.58
25.66
25.66
25.66
25.66
192
210
231
220
213
223
205
15,007
11,806
12,881
11,934
14,623
17.658
12,689
2
1
2
1
2
1
2
1
2
1
1
1
224
224
2224
224
224
224
224
16
16
16
16
16
16
15
1
1
1
1
1
1
1
4
1
4
1
4
1
4
1
4
1
4
1
4
1
1
9
1
9
1
9
1
8
1
7
1
7
1
7
5.2
4.2
7.5
7.2
6.8
6.8
6.8
11.4
10.3
9.5
11.3
10.3
8.0
9.0
178.1
188.6
200.0
202.6
202.1
190.0
197.8
9.0
11.1
3.0
4.0
3.5
4.0
4.0
75.2
78.9
79.5
121.0
115.4
79.0
106.7
8.0
10.8
15.0
18.0
15.2
15.9
•15.9
30.6
29.0
39.0
32.0
29.9
30.1
30.0
6.7
10.7
8.0
8.5
8.2
8.2
8.2
324.2
343.6
361.5
404.6
391.4
342.0
378.4
2,815
2,798
2,750
2,821
2,751
2,704
2,675
46
36
37
37
39
39
41
10,389
9,935
10,311
10,085
10,099
10,099
9,282
1.972
2.525
2.521
2,914
1,473
1.473
2,040
19.0%
25.4%
24.4(/(
28.9c7c
14.6%
14.610
22.0%
122