CAFR FY2008C
11
KODIAK ISLAND BOROUGH
Comprehensive Annual Financial Report
Year Ended June 30, 2008
Official Issuing Report
Karleton G. Short
Finance Director
ALAS
KODIAK ISLAND BOROUGH
KODIAK, ALASKA
KODIAK ISLAND BOROUGH
COMPREHENSIVE
ANNUAL
FINANCIAL
REPORT
JULY 1 2007 - JUNE 301) 2008
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KODIAK ISLAND BOROUGH
TABLE OF CONTENTS
June 30, 2008
Page
INTRODUCTORY SECTION:
Letter of Transmittal
1 -4
GFOA Certificate of Achievement
5
Organizational Chart
6
Elected Officials (Photographs)
7
Borough Officials
8
Map of Kodiak Island Borough
9
FINANCIAL SECTION:
Independent Auditors' Report
10 -11
Management's Discussion and Analysis
12 -20
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets
21
Statement of Activities
22
Fund Financial Statements:
Balance Sheet — Governmental Funds
23
Reconciliation of Net Assets Between the Government -Wide and Fund Financial
Statements
24
Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) —
Governmental Funds
25
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities
26
Balance Sheet — Proprietary Funds — Business -Type Activities — Enterprise Funds
27
Statement of Revenues, Expenses, and Changes in Net Assets — Proprietary Funds —
Business -Type Activities — Enterprise Funds
28
Statement of Cash Flows — Proprietary Funds — Business -Type Activities — Enterprise
Funds
29 -30
Notes to Financial Statements
31 -65
Required Supplementary Information:
Schedule of Funding Progress — PERS
66
Budgetary Comparison Schedule — General Fund
67 -68
Budgetary Comparison Schedule — Special Revenue Fund — Facilities
69
Notes to Required Supplementary Information — Budgetary Comparison Schedules
70
Additional Supplementary Information:
Budgetary Comparison Schedule — Debt Service Fund — Education and Health
71
Nonmajor Governmental Funds:
Combining Balance Sheet
72
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
73
Nonmajor Special Revenue Funds:
Combining Balance Sheet
74 -77
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KODIAK ISLAND BOROUGH I
TABLE OF CONTENTS 1
June 30, 2008 '
(continued) I
1
Page
Additional Supplementary Information, continued
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
(Deficits)
78 -81
Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit) —
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Budget and Actual:
Fire and Road Service Areas:
Fire:
Fire Protection Area No. 1
82
Womens Bay Fire Department
Kodiak Airport Fire District
83
84
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Road:
Monashka Bay Road Service Area
85
Service Area No. 1
86
Womens Bay Road Service Area
87
Bay View Road Service Area
88
Service Area No. 2
89
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Coastal Management
90
Child Care Assistance Program
91
L.E.P.C.
92
Land Sales
93
Buildings and Grounds
94
Woodland Acres Street Light Service Area
95
Trinity Islands Street Light Service Area
96
Kodiak Arts Council
97
Tourism Development
Mission Lake Tide Gate
98
99
Fern Fuller Trust
100
Trinity Islands Paving
101
Debt Service Fund:
Balance Sheet — Other
102
Schedule of Revenues, Expenditures, and Changes
in Fund Balance — Budget and Actual — Other
103
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Nonmajor Capital Project Funds:
Balance Sheet
104
Schedule of Revenues, Expenditures and Changes in Fund Balances
105
Supplemental Schedule of Capital Projects
106 -107
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I KODIAK ISLAND BOROUGH
1 Table of Contents
Enterprise Funds:
Schedule of Revenues, Expenses, and Changes in Net Assets — Budget
and Actual:
Municipal Solid Waste Collection and Disposal
Hospital Facilities
Kodiak Fisheries Research Center
911 Services Fund
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Supplementary Schedules:
Summary of Bonded Debt Service Requirements to Maturity
General Obligation Refunding Bonds, 1998 Series A — Retirement Schedule
General Obligation Bonds, 2000 Series E — Retirement Schedule
General Obligation Bonds, 2000 Series F — Retirement Schedule
General Obligation Bonds, 2004 Series C — Retirement Schedule
General Obligation Bonds, 2004 Series D — Retirement Schedule
General Obligation Bonds, 2008 Series A — Retirement Schedule
STATISTICAL SECTION:
Net Assets by Component — Last Four Fiscal Years
Changes in Net Assets — Last Four Fiscal Years
Fund Balances of Governmental Funds — Last Four Fiscal Years
Changes in Fund Balances of Governmental Funds — Last Five Fiscal Years
General Revenues by Source — Last Ten Fiscal Years
Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years
Direct and Overlapping Property Tax Rates and Contributions to the School District
Principal Property Tax Payers - Current Year and Ten Years Ago
Property Tax Levies and Collections — Last Ten Fiscal Years
Ratios of Net General Bonded Debt Outstanding — Last Ten Fiscal Years
Computation of Direct and Overlapping Debt
Legal Debt Margin Information — Last Four Fiscal Years
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
Governmental Expenditures and Transfers — Last Ten Fiscal Years
Ratios of Outstanding Debt by Type — Last Ten Fiscal Years
Demographic and Economic Statistics — Last Ten Fiscal Years
Average Monthly Employment & Earnings Last Three Fiscal Years
Miscellaneous Statistical Data — Last Ten Fiscal Years
Property Value, Construction and Bank Deposits — Last Ten Fiscal Years
Full -Time Equivalent Borough Employees by Function/Program — Last Four Fiscal Years
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
P,
INTRODUCTORY SECTION
t
Kodiak Island Borough
Finance Department
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486 -9320 Fax (907) 486 -9399
February 18, 2009
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 generally accepted accounting
principles in the United States 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, 2008.
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 Altman, Rogers & Co., a firm of licensed
certified. public accountants. The goal of the independent audit was to form an opinion on whether the
financial statements of the Borough, for the fiscal year ended June 30, 2008, are presented fairly, in all
material respects, in accordance with generally accepted accounting principles in the United States of
' America. 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
issued an unqualified opinion on the Borough's financial statements for the fiscal year ended June 30,
2008. The independent auditors' report is presented as the first component of the financial section of this
report.
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Members of the Assembly
Kodiak Island Borough, Alaska
The independent audit of the financial statements of the Borough was part of broader, State and f
mandated "Single Audits" designed to meet the special needs of State and federal grantor agenc
standards governing Single Audit engagements require the independent auditor to report not only
fair presentation of the financial statements, but also on the audited government's internal contr i
compliance with legal requirements, with special emphasis on internal controls and legal requi .s
involving the administration of State and federal awards. These reports are available in the B( '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
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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
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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.
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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
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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 Project Funds — project level, all other funds ,
— department level. All funds, except Capital Project Funds, are budgeted on an annual basis encompassing
a fiscal year. Budgets of Capital Project Funds generally encompass the period from 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
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Members of the Assembly
Kodiak Island Borough, Alaska
been adopted. For the General Fund and the Facilities special revenue fund, this comparison is presented
on pages 67 -69 as part of required supplementary information. For governmental funds, other than the
General Fund and the Facilities special revenue fund, this comparison is presented in the additional
supplementary information subsection of this report, which starts on page 71. Also included in the
additional supplementary information subsection are the Education and Health debt service fund budget to
actual and 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
108.
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 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 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 local unemployment rate has fluctuated from 5.1% to 14.9% over the
last five years, but the overall average has remained around 9 %.
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.kodiakak.us.
Members of the Assembly
Kodiak Island Borough, Alaska
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 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 10 of the notes to
the financial statements.
Pension and other post employment benefits. The Borough participates in the Alaska Public Employees
Retirement System (PERS), which includes both a defined contribution and 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, 2006 (date of most recent actuarial analysis), the actuarial value of liabilities
exceeded the actuarial value of assets by $8.2 million. Effective July 1, 2006, the PERS retirement plan
was closed by senate Bill 141. A new defined contribution plan for members first hired on or after July 1,
2006 was established.
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 12 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, 2007. This was the twentieth 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 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.
Respectfully submitted,
Rick L. Gifford
Borough Manager
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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, 2007
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.
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COMM President
SFAL go y
Executive Director
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Kodiak Island Borough
Fiscal Year 2008
Electorate
Borough Mayor
Borough Assembly
Borough Attorne :; Borough Clerk
Borough Manager
-- — — - �—
Assistant Clerk Deputy Clerk
Revenue
Accountant
Cashier
Secretary III
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Assistant Fire
Chief
Engineering/
Facilities
Director
KFRC
Environmental
Director
Maintenance
Specialist
Community
Engineer
/MIS
KFRC
Director
Receptionist
Baler /Landfill
Supervisor
Project Manager/
Inspector
General
Baler Operator II
Accountant
Project Assistant
Baler Operator I
MIS Programmer/
Maintenance
Baler Operator I
Worker
Enforcement Technician
Baler Operator I
Secretary III
MIS Operations
Drafting Technician Assessment Clerk I
Baler Operator II
Revenue
Accountant
Cashier
Secretary III
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Administrative
Arts Council
Assistant
Director
Community
Finance
/MIS
Development Assessor
Director
Director
Associate Planner Property Appraiser
General
LRP
Accountant
MIS Programmer/
Associate Planner Appraiser
Analyst
Enforcement Technician
Accounting Tech
MIS Operations
Drafting Technician Assessment Clerk I
Accounts Payable
Supervisor
Accounting Tech
MIS Network
Secretary III
Payroll
Administrator
Childcare Assistance
Administrator
Revenue
Accountant
Cashier
Secretary III
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MAYOR AND ASSEMBLY MEMBERS
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Jerome Selby
Mayor, 2010
Pat Branson
At Large, 2010
Jerrol Friend
At Large, 2009
Sue Jeffrey
At Large, 2008
Chris Lynch
At Large, 2009
Tom Abell
Deputy Presiding Officer,
At Large, 2008
r
Louise Stutes
At Large, 2010
Reed Oswalt
At Large, 2008
KODIAK ISLAND BOROUGH
KODIAK, ALASKA
BOROUGH OFFICIALS
YEAR ENDED JUNE 30, 2008
MAYOR
Jerome Selby '10
ASSEMBLY
Tom Abell '08
Sue Jeffrey `08
Jerrol Friend `09
Louise Stutes '10
Patricia Branson '10
Reed Oswalt `08
Chris Lynch `09
MANAGEMENT
RickGifford ............................................................................ ............................... Borough Manager
Karleton G. Short .............................. ............................... ........................Finance
Director /Treasurer
Woody Koning ............................................. ...............................
Engineering and Facilities Director
NovaJavier, CMC ........................................................................
............................... Borough Clerk
Bud Cassidy ............................ ............................... ......................Community
Development Director
TomAnderson ................................................................. ...............................
.......................Assessor
Robert Himes ........................................................ ...............................
...........................Fire Chief
Jamin, Schmitt, St. John ............................ ...............................
Borough Attorney (Contracted Firm)
Stuart McDonald ................................................ ...............................
Superintendent, School District
Dria Bray - Holloway ............................................................. ...............................
General Accountant
Cassandra Juenger ....................................... ...............................
........................Revenue Accountant
Lauri Whiddon ..................................................... .............................HR
Officer /Executive Assistant
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FINANCIAL SECTION
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PUBLIC
. ACCOUNTANTS
Independent Auditors' Report
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
Kodiak, Alaska
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, 2008, 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,
1 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 respective
financial position 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
June 30, 2008, 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.
In accordance with Government Auditing Standards, we have also issued our report dated February 18, 2009 on
1 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
1 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.
The management's discussion and analysis on pages 12 through 20, the schedule of funding progress for PERS
on page 66 and the budgetary comparison information on pages 67 through 69 are not a required part 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.
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425 G Street Suite 500 Anchorage, Alaska 99501 Phone 907- 274 -2992 Fax 907 - 274 -2993
1 Offices in Kodiak, Juneau and Soldotna A Professional Corporation
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
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 additional '
supplementary information, as identified in the table of contents, are presented for purposes of additional analysis
and are not a required part of the basic financial statements. Such 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 and statistical section, as identified in the table of contents, 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.
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February 18, 2009
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2008
' 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,
2008. We encourage readers to consider the information presented here in conjunction with additional
1 information that we have furnished in our letter of transmittal, which can be found on pages 1 - 4 of this report.
Financial Highlights
• The assets of the Kodiak Island Borough exceeded its liabilities at the close of FY2008 by $146,825,807.
Of this amount, $68,167,457 (unrestricted net assets) may be used to meet the Borough's ongoing
obligations to citizens and creditors.
• In FY2008 the Borough's total net assets increased by $2,639,297.
• At the end of the current fiscal year, the Borough's governmental funds reported combined fund balances
of $72,452,894, an increase of $5,162,941 in comparison with the prior year. At the end of the FY2008,
unreserved fund balance for the general fund was $3,230,479, 24% of total general fund expenditures.
• The Borough's bonds payable increased by $5,793,920, mostly due to the sale of $8,000,000 in general
obligation bonds.
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.
1 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
1 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, emergency
preparedness, community and economic development, health and sanitation, education, culture and recreation,
service district maintenance and primary and secondary education. The business -type activities of the Kodiak
Island Borough include a solid waste collection and disposal facility, a Borough owned hospital, the Kodiak
Fisheries Research Center and a 911 emergency system.
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.
12
KODIAK ISLAND BOROUGH ,
Management's Discussion and Analysis '
June 30, 2008
The government wide financial statements can be found on pages 21 -22 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 27 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 23 -26 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
collection and disposal facility, a Borough owned hospital leased to the Sisters of Providence d.b.a. Providence
Kodiak Island Medical Center, rents and utilities of the Borough owned Kodiak Fisheries Research Center, and
911 phone charges and expenses.
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 27 -30 of this report.
13 1
I KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2008
' 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 31 -65 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 the Facilities special revenue fund. Required supplementary information can be found on pages 66 -69
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 $144,710,087 at the close of FY2008, the most
recent fiscal year.
1
u
I J
1
1
The largest portion of the Kodiak Island Borough's net assets ($78,948,215 or 54 %) 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 the statement of net assets on page 21.
The remaining balance of unrestricted net assets, $68,167,457, may be used to meet the Borough's ongoing
obligations to citizens and creditors.
14
Governmental
Business -type
Activities
Activities
Total
2008
2007
2008
2007
2008
2007
Current and other assets
$
71,664,709
64,724,043
9,919,218
8,524,715
81,583,927
73,248,758
Capital assets
79,157,076
73,425,394
36,718,028
38,053,625
115,875,104
111,479,019
Total assets
$
150,821,785
138,149,437
46,637,246
46,578,340
197,459,031
184,727,777
Long -tern liabilities
$
36,601,545
29,807,910
8,307,163
5,199,972
44,908,708
35,007,882
Other liabilities
(761,333)
(2,724,583)
6,485,849
8,257,968
5,724,516
5,533,385
Total liabilities
$
35,840,212
27,083,327
14,793,012
13,457,940
50,633,224
40,541,267
Net assets:
Invested in capital assets,
net of related debt
$
43,951,753
73,425,394
34,706,597
38,623,762
78,658,350
112,049,156
Unrestricted
71,029,820
37,640,716
(2,862,363)
(5,503,362)
68,167,457
32,137,354
Total net assets
$
114,981,573
111,066,110
31,844,234
33,120,400
146,825,807
144,186,510
For more detailed information see the statement of net assets on page 21.
The remaining balance of unrestricted net assets, $68,167,457, may be used to meet the Borough's ongoing
obligations to citizens and creditors.
14
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2008
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 Business -type activities Total
2008 2007 2008 2007 2008 2007
Revenues:
Program revenues:
Charges for Services
Operating grants and contributions
Capital grants
General Revenues:
Property taxes
Grants and entitlements not restricted
to specific programs
Land sale
Severance taxes
Other
Investment earnings
Total revenues
Expenses:
General government
Public safety
Emergency preparedness
Community and economic development
Health and sanitation department
Education, culture, and recreation
Service District Maintenance
Education
Interest on long -term debt
Municipal solid waste collection
Hospital facilities
Kodiak Fisheries Research Center
911 services
Total Expensenes
Change in net assets before
transfers
Transfers
Change in net assets
Net assets, beginning of year
Net assets, end of year
$ 620,681 1,147,212 6,303,688
1,911,246 1,935,687
1,926,465 184,922
10,118,601 9,754,916
3,144,751
3,242,740
2,944
11,745
1,436,210
1,316,689
377,605
(237,381)
3,912,145
3,745,990
23,450,648
21,102,520
4,226,758
4,755,754
509,697
-
13,841
10,384
1,105,156
786,614
449,792
414,144
183,747
161,247
378,661
362,189
11,524,160
10,788,188
1,270,423
1,290,216
1,920
434,164
6,739,772
4,628,826
1,124,650
2,027,432
107,980
19,662,235 18,568,736
7,888,888
6,658,643 6,924,369
7,805,855
1,911,246
1,935,687
1,926,465
184,922
10,118,601
9,754,916
35,747
274,126
6,968,516
3,144,751
2,944
1,436,210
379,525
4,346,309
3,242,740
11,745
1,316,689
(201,634)
4,020,116
2,888,821
1,297,419
1,889,750
64,140
6,140,130
30,190,420
4,226,758
509,697
13,841
1,105,156
449,792
183,747
378,661
11,524,160
1,270,423
4,628,826
1,124,650
2,027,432
107,980
27,551,123
28,071,036
4,755,754
10,384
786,614
414,144
161,247
362,189
10,788,188
1,290,216
2,888,821
1,297,419
1,889,750
64,140
24,708,866
3,788,413
2,533,784
(1,149,116)
828,386
2,639,297
3,362,170
127,050
162,643
(127,050)
(162,643)
3,915,463
2,696,427
(1,276,166)
665,743
2,639,297
3,362,170
111,066,110
108,369,683
33,120,400
32,454,657
144,186,510
140,824,340
$ 114,981,573
111,066,110
31,844,234
33,120,400
146,825,807
144,186,510
Governmental activities increased the Kodiak Island Borough's net assets by $3,915,463. The major differences
were a decrease of $526,531 in charges for services, and increases of $1,741,543 in capital grants and $363,685
in property taxes. There were some major changes in expenses including an increase in community and
economic development of $318,542 and an increase of $735,972 in education.
15 1
' KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
' June 30, 2008
Business -type activities decreased the Kodiak Island Borough's net assets by $1,276,166. The major differences
were a $354,955 increase in charges for services, a $256,735 increase in retirement expenses and a $855,493
increase in closure /post closure costs. The proprietary funds had an operating loss of $1,149,116 before transfers.
1
1
�J
fi
fl
2008 Program Revenue vs. Expense
Governmental Activities
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000 -
o
cce awe Re �a,��o o
♦ oAe Q bQa�e O J��oQ P
a yet` c�
Co cu cc .rte NK o e ��
.0 de l
J�
It Revenues ■ Expenditures
Financial Analysis of the Government's Funds
For more detailed information see the statement of activities on page 22.
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.
16
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis '
June 30, 2008
As of the end of the current fiscal year, the Kodiak Island Borough's governmental funds reported combined ,
ending fund balances of $72,452,894, an increase of $5,162,941 in comparison to the beginning of the year.
$65,482,943 of this total amount constitutes unreserved fund balance, of which $1,492,643 is designated for
subsequent year expenditures and $63,990,300 is undesignated. The remaining $6,969,951 of fund balance is
reserved for long -term interfund borrowings.
The main reasons for this increase are as follows: ,
• General Fund real property taxes exceeded projections by $134,102.
• General Fund severance taxes exceeded projections by $165,680.
• General Fund state revenues exceeded projections by $150,637.
• Expenditures in the General Fund were lower than projections by $645,719. '
• Interest earnings in the Facilities Fund exceeded transfers out by $231,461.
• The School Bond Capital Projects fund sold an $8,000,000 bond issue. '
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 $3,230,479 with $1,341,798 reserved for subsequent year's
expenditures. As a measure of the general fund's liquidity, it may be useful to compare fund balance to total
expenditures. Unreserved fund balance represents 24% of total general fund expenditures.
The fund balance of the Kodiak Island Borough's General fund increased by $437,166 during the current fiscal
year. The key factors leading to this increase were property taxes $134,102 over budget, raw fish tax $109,161,
severance taxes coming in $165,680 over budget, the General and Administration Department coming in ,
$111,704 under budget, the MIS Department coming in at $94,378 under budget, and the Education, Culture and
Recreation Department coming in $126,984 under budget. The facilities fund had a total fund balance of
$39,869,858, $32,899,907 of which is unreserved. Fund balance increased $231,461 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. '
Net assets of the Municipal Solid Waste Collection and Disposal fund amounted to $4,354,676, the Hospital
Facilities fund amounted to $16,973,988, the Kodiak Fisheries Research Center fund amounted to $10,525,219 ,
and the 911 Services fund amounted to ($9,649).
The total decrease in net assets for the Municipal Solid Waste Collection and Disposal fund was $460,897. The
total decrease in net assets for the Hospital Facilities fund was $516,151, for the Kodiak Fisheries Research
Center it was $248,507 and for the 911 Services fund it was $50,611. 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. '
P,
1
�1
1
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2008
2008 Program Revenue vs Expense
Proprietary Operations
5,000,000
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000 `
2,000,000
1,500,000
1,000,000
500,000
0 _
Municpal Solid Waste Hospital Facilities
■ Program Revenue
911 Service Kodiak Fisheries
ResearchCenter
■ Program Expense
General Fund Budgetary Highlights
Differences between the original budget and final amended budget can be briefly summarized as follows:
• The revenue budget for State of Alaska taxpayer relief was increased by $411,750.
• The revenue budget for interest earnings was increased by $140,331.
• The expenditure budget for the Borough Attorney was increased by $30,000.
• The expenditure budget for the Management Information Services was increased by $30,000.
• The expenditure budget for Community Development was increased by $17,360.
• The expenditure budget for Education Culture and Recreation was increased by $130,731.
• The expenditure budget for transfers out was increased by $400,000.
Differences between the final amended budget and actual can be summarized as follows:
• Property taxes were $132,071 over budget. This happened because the actual assessed values were higher
than what was estimated in the budget.
• Severance taxes were $165,680 over budget. This was due to fish catches exceeding budget projections,
especially ground fish.
18
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis '
June 30, 2008
• State shared revenues were $150,637. This was due to State of Alaska shared fish revenues. ,
• The Borough Assembly department came in $25,313 under budget. This was due to travel and per diem
coming in under budget. '
• The Borough Manager's department came in $89,400 under budget. This was due to a vacant position, the
Grant Writer.
• The Borough Clerk's department was $25,578 under budget. This was due to health insurance costs
coming in under budget.
• The Finance department was $27,964 under budget. This was mainly due to health insurance coming in
under budget.
• The Management Information Systems department came in $94,378 under budget. This was due to salary
costs and benefits and maintenance agreements coming in under budget.
• The Community Development department came in $75,603 under budget. This was due to personnel
services and employee benefits coming in under budget.
• Economic Development came in $28,711 under budget. This was mainly due to contracted services ,
coming in under budget.
• General Administration was $111,704 under budget. This was due to audit expenses, postage and bank '
fees coming in under 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, 2008, amounted to $115,875,104 (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 increase in the Kodiak Island Borough's investments
in capital assets for the current fiscal year was $4,396,085 which was mostly due to increases in construction
work in process.
,
The following table displays the capital assets (net of depreciation) for the current year.
Governmental Business -type
activities activities Total
2008 2007 2008 2007 2008 2007
Artwork $ — — 16,091 16,091 16,091 16,091
Land 23,072,753 23,187,184 1,661,499 1,661,499 24,734,252 24,848,683
Construction work -in- progress 14,543,228 6,626,411 1,222,086 743,494 15,765,314 7,369,905
Buildings and improvements 37,895,046 40,206,914 28,653,540 30,134,142 66,548,586 70,341,056
Improvements other than buildings 609,425 909,653 2,640,513 2,801,249 3,249,938 3,710,902
Equipment 1,340,955 655,495 1,297,948 1,423,675 2,638,903 2,079,170
Infrastructure 1,695,669 1,839,737 — — 1,695,669 1,839,737
'
Unclassified plant in service — — 1,226,351 1,273,475 1,226,351 1,273,475
S 79,157,076 73,425,394 36,718,028 38,053,625 115,875,104 111,479,019
Additional information on the Kodiak Island Borough's capital assets can be found in note 6 on pages 41 -45 of
this report.
,
19
,
1
' KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2008
Long -term Debt — At the end of the current fiscal year, the Kodiak Island Borough had total bonded debt
' outstanding of $34,860,000. 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.
r The following table displays the long -term debt for the current year.
The Kodiak Island Borough's total debt increased $6,345,277 during the current fiscal year. This increase was
' due to the issuance of $8,000,000 of general obligation bonds. These were 20 year tax exempt bonds with an
interest rate of 4.0 to 5.0 percent.
' The last time the Borough received a rating on a bond issue (General Obligation Refunding Bonds, 1998 Series
A) the Borough received an A- rating from Fitch Investors Service. Currently, general obligation bonds are
insured to an AAA rating at the time of issuance.
' There is no general obligation debt limit imposed on the Kodiak Island Borough by the State Constitution, state
statutes or the Borough's charter or code.
Additional information on the Kodiak Island Borough's long -term debt can be found in note 8 on pages 48 -55 of
this report.
Economic Factors and Next Year's Budgets and Rates
• At June 30, 2008, the unemployment rate for the Kodiak Island Borough was 9.3 %, which is 3.3% higher
than last year's rate of 6.0 %. The average unemployment rate for the last 10 years has been 9.2 %.
' • Property tax revenues received are projected to increase in future years as the Kodiak Island Borough's
assessed valuation continues to increase.
• The PERS (Public Employees Retirement System) rate has increased from 0% in FY2004 to 22% in
FY2008. Actuarially the PERS rate would be 39.14% The State of Alaska set a ceiling of 22% on all
political subdivisions.
' 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
Kodiak, Alaska 99615.
Rol
Governmental
Business -type
activities
activities
Total
2008 2007
2008 2007
2008
2007
General obligation bonds, including premium S
34,957,269 29,163,349
— —
34,957,269
29,163,349
ADEC loans
72,028 77,470
— —
72,028
77,470
Compensated absences
176,026 172,412
— —
4,041,730 3,222,587
176,026
4,041,730
172,412
3,222,587
Landfill post closure care costs
Long term interfimd borrowings
— —
6,969,950 7,367,644
6,969,950
7,367,644
Notes payable
— —
1,768,660 1,636,924
1,768,660
1,636,924
$
35,205,323 29,413,231
12,780,340 12,227,155
47,985,663
41,640,386
The Kodiak Island Borough's total debt increased $6,345,277 during the current fiscal year. This increase was
' due to the issuance of $8,000,000 of general obligation bonds. These were 20 year tax exempt bonds with an
interest rate of 4.0 to 5.0 percent.
' The last time the Borough received a rating on a bond issue (General Obligation Refunding Bonds, 1998 Series
A) the Borough received an A- rating from Fitch Investors Service. Currently, general obligation bonds are
insured to an AAA rating at the time of issuance.
' There is no general obligation debt limit imposed on the Kodiak Island Borough by the State Constitution, state
statutes or the Borough's charter or code.
Additional information on the Kodiak Island Borough's long -term debt can be found in note 8 on pages 48 -55 of
this report.
Economic Factors and Next Year's Budgets and Rates
• At June 30, 2008, the unemployment rate for the Kodiak Island Borough was 9.3 %, which is 3.3% higher
than last year's rate of 6.0 %. The average unemployment rate for the last 10 years has been 9.2 %.
' • Property tax revenues received are projected to increase in future years as the Kodiak Island Borough's
assessed valuation continues to increase.
• The PERS (Public Employees Retirement System) rate has increased from 0% in FY2004 to 22% in
FY2008. Actuarially the PERS rate would be 39.14% The State of Alaska set a ceiling of 22% on all
political subdivisions.
' 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
Kodiak, Alaska 99615.
Rol
1
21
KODIAK ISLAND BOROUGH
Statement of Net Assets
June 30, 2008
(With summarized financial information for June
30, 2007)
Component
Primary government
unit
Total reporting
entity
'
Governmental
Business -type
School
Assets
activities
activities
Total
district
2008
2007
Equity in central treasury
$ 69,743,583
9,006,752
78,750,335
168,037
78,918,372
70,493,922
'
Due from primary
government
3,380,508
3,380,508
3,450,419
Receivables:
State of Alaska
775,826
100,000
875,826
-
875,826
704,827
Federal Government
373,520
-
373,520
-
373,520
11,093
'
Property taxes, net of
allowance of $15,828
112,109
112,109
112,109
566,740
Severance taxes
352,927
352,927
-
352,927
-
Deferred charges
34,929
-
34,929
-
34,929
37,112
Inventories
Prepaid expenses
-
277,007
277,007
447,006
5,526
724,013
5,526
654,581
6,656
Land sales contracts
receivable
230,778
-
230,778
-
230,778
231,463
Notes receivable
-
-
-
-
-
448,533
Accounts and other
receivables, net
41,037
535,459
576,496
1,692,896
2,269,392
1,884,537
Capital assets:
Non - depreciable
37,615,981
2,899,676
40,515,657
-
40,515,657
32,234,679
Depreciable, net
41,541,095
33,818,352
75,359,447
289,865
75,649,312
79,530,901
Total
$ 150,821,785
46,637,246
197,459,031
5,983,838
203,442,869
190,255,463
Liabilities and Net Assets
Liabilities:
'
Accounts payable
$ 2,049,439
810,603
2,860,042
363,909
3,223,951
1,338,411
Retainages payable
208,818
-
208,818
-
208,818
11,904
Accrued compensation
and related liabilities
Other accrued liabilities
176,620
434,366
60,942
184,165
237,562
618,531
2,955,755
3,193,317
618,531
3,708,783
597,323
Customer deposits
800
800
800
828
Unearned revenues
51,534
182,453
233,987
9,474
243,461
209,770
Due to component units
3,386,090
-
3,386,090
-
3,386,090
3,450,419
Internal balances
(7,069,000)
7,069,000
-
-
-
-
i
Noncurrent liabilities:
Due within one year
2,727,629
242,771
2,970,400
412,883
3,383,283
2,781,166
Due in more than
one year
32,477,694
1,768,660
34,246,354
-
34,246,354
28,846,831
Landfill closure costs
-
4,041,730
4,041,730
-
4,041,730
3,222,587
Net Pension and OPEB
obligation
1,396,222
432,688
1,828,910
4,357,537
6,186,447
1,436,630
Total liabilities
35,840,212
14,793,012
50,633,224
8,099,558
58,732,782
45,604,652
Net assets:
Invested in capital assets,
net of related debt
43,951,753
34,706,597
78,658,350
289,865
78,948,215
78,500,659
Unrestricted
71,029,820
(2,862,363)
68,167,457
(2,405,585)
65,761,872
66,150,152
'
Net assets
114,981,573
31,844,234
146,825,807
(2,115,720)
144,710,087
144,650,811
Total
$ 150,821,785
46,637,246
197,459,031
5,983,838
203,442,869
190,255,463
See accompanying notes to financial statements.
21
KODIAK ISLAND BOROUGH
Statement of Activities
Year ended June 30, 2008
(With summarized financial information for the year ended June 30, 2007)
See accompanying notes to financial statements.
22
�r r rr r r r� rr rr r ■� rr �r rr rr r rr rr r� rr
Program revenues
Net (expense) revenue and changes in net assets
Operating
Primary government
Component
Charges for
grants and
Capital
Governmental
Business -type
units school
Total reporting entity
Functions/Programs
Expenses
services
contributions
grants
activities
activities
Total
district
2008
2007
Primary government:
Governmental activities:
General government
S 4,226,758
436,284
-
106,557
(3,683,917)
-
(3,683,917)
-
(3,683,917)
(3,492,350)
Public safety
509,697
-
-
-
(509,697)
(509,697)
(509,697)
-
Emergency preparedness
13,841
-
-
-
(13,841)
-
(13,841)
-
(13,841)
(10,384)
Community and economic development
1,105,156
148,682
9,197
921,776
(25,501)
-
(25,501)
-
(25,501)
(692,635)
Health and sanitation department
449,792
7,370
100,299
-
(,)
-
(342,123)
-
(342,123)
(337,037)
Education, culture and reecr on
183,747
-
(183,747)
-
(183,747)
-
(183,747)
(161,247)
Service district maintenance
378,661
28,345
-
150,544
(199,772)
-
(199,772)
-
(199,772)
(342,009)
Primary and secondary education
11,524,160
-
-
747,588
(10,776,572)
-
(10,776,572)
-
(10,776,572)
(10,755,092)
Interest on long -term debt
1,270,423
-
1,801,750
531,327
531,327
531,327
489,839
Total governmental activities
19,662,235
620,681
1,911,246
1,926,465
(15,203,843)
-
(15,203,843)
(15,203,843)
(15,300,915)
Business -type activities:
Municipal solid waste collection and
disposal
4,628,826
3,911,771
-
-
-
(717,055)
(717,055)
-
(717,055)
1,044,164
Hospital facilities
1,124,650
720,000
-
-
-
(404,650)
(404,650)
-
(404,650)
(216,309)
Kodiak fisheries research center
2,027,432
1,614,532
-
-
-
(412,900)
(412,900)
-
(412,900)
(307,900)
911 services
107,980
54,925
-
-
-
(53,055)
(53,055)
(53,055)
(1,442)
Total business -type activities
7,888,888
6,301,228
-
(1,587,660)
(1,587,660)
(1,587,660)
518,513
Total primary government
27,551,123
6,921,909
1,911,246
1,926,465
(15,203,843)
(1,587,660)
(16.791,503)
(16,791,503)
(14,782,402)
Component units
School district
S 48,715,002
256,119
4,271,975
65,082
(44,121,826)
(44,121,826)
(32,759,712)
General revenues:
Property taxes
10,118,601
-
10,118,601
-
10,118,601
9,754,916
Grants and entitlements not restricted to specific
programs
3,144,751
-
3,144,751
31,876,322
35,021,073
26,551,092
Land sale
2,944
-
2,944
-
2,944
11,745
Severance taxes
1,436,210
-
1,436,210
-
1,436,210
1,316,689
Support from primary government
-
-
-
9,420,412
9,420,412
8,671,260
Other
377,605
4,380
381,985
245,071
627,056
133,809
Investment earnings
3,912,145
434,164
4,346,309
-
4,346,309
4,020,116
Transfers
127,050
(127,050)
Total general revenues and transfers
19,119,306
311,494
19,430,800
41,541,805
60,972,605
50,459,627
Change in net assets
3,915,463
(1,276,166)
2,639,297
(2,580,021)
59,276
2,917,513
Net assets, at beginning ofyear (see footnote 13).
111,066,110
33,120,400
144,186,510
464,301
144,650,811
141,733,298
Net assets, at end ofyear
S 114,981,573
31,844,234
146,825,807
(2,1 15,720)
144,710,087
144,650,811
See accompanying notes to financial statements.
22
�r r rr r r r� rr rr r ■� rr �r rr rr r rr rr r� rr
KODIAK ISLAND BOROUGH
Balance Sheet
Governmental Funds
June 30, 2008
(With summarized financial information for June 30, 2007)
23
Various
Facilities
Education and
Borough
School Bond
Other
Special
Health Debt
Capital
Capital
Governmental
Totals
Assets
General
Revenue Fund
Service Fund
Projects
Projects
Funds
2008
2007
Assets:
Cash and investments $
6,091,074
32,745,485
19,486
214,081
26,849,096
3,824,361
69,743,583
62,790,419
Receivables:
State of Alaska
84,694
-
370,852
68,035
-
252,245
775,826
604,827
Federal Government
-
-
-
204,106
169,414
373,520
11,093
Property taxes, net of
allowance of$1 5,828
100,339
-
-
11,770
112,109
211,919
Severance taxes
352,927
-
-
-
-
352,927
354,821
Land sales contracts
-
-
-
-
-
54,137
54,137
38,308
Notes receivable
-
-
-
448,533
Accounts and other
receivables, net
2,365
-
38,672
41,037
33,856
Due from other funds
509,926
543,533
-
50,000
-
-
1,103,459
872,475
Land sales contracts, due after one year
-
-
-
-
-
176,641
176,641
193,155
Advances to other funds
-
6,679,890
-
6,679,890
7,367,644
Total $
7,141,325
39,968,908
390,338
536,222
26,849,096
4,527,240
79,413,129
72,927,050
Liabilities and Fund Balances
Liabilities:
Accounts payable
251,242
-
200
937,227
544,382
316,388
2,049,439
642,679
Retainages payable
-
-
-
103,091
87,749
17,978
208,818
11,904
Accrued compensation
and related liabilities
176,620
-
-
-
176,620
165,935
Customer deposits
-
-
-
-
-
800
800
828
Due to component unit
3,386,090
-
-
-
-
-
3,386,090
3,450,419
Due to other funds
400,000
-
-
314,349
714,349
767,562
Deffered revenues
96,894
99,050
-
-
-
228,175
424,119
597,770
Total liabilities
3,910,846
99,050
400,200
1,040,318
632,131
877,690
6,960,235
5,637,097
Fund balances:
Reserved:
Long -tern interf ind
borrowings
-
6,969,951
-
-
-
-
6,969,951
7,367,644
Unreserved:
General fund:
Designated for subsequent
year expenditures
1,341,798
-
-
-
-
-
1,341,798
554,975
Undesignated
1,888,681
-
-
-
-
-
1,888,681
2,238,338
Special revenue funds:
Designated for subsequent
year expenditures
-
-
-
150,845
150,845
171,800
Undesignated
-
32,899,907
-
3,236,146
36,136,053
35,144,521
Debt service funds:
Undesignated
-
-
(9,862)
-
-
169,650
159,788
101,090
Capital projects funds:
Undesignated
-
-
-
(504,096)
26,216,965
92,909
25,805,778
21,711,585
Total fund balances
3,230,479
39,869,858
(9,862)
(504,096)
26,216,965
3,649,550
72,452,894
67,289,953
Total 1
7,141,325
39,968,908
390,338
536222
26,849,096
4,527240
79,413,129
72,927,050
See accompanying notes to financial statements.
23
1�
KODIAK ISLAND BOROUGH ,
Reconciliation of Net Assets Between the
Government -wide and Fund Financial Statements ,
Year ended June 30, 2008
Amount reported as fund balance on the governmental funds balance sheet $ 72,452,894 ,
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.
79,157,076
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
$ 96,894
Interest receivable
99,050
,
Notes receivable - land sales
176,641
Deferred charges
34,929
407,514
Long -tern 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
(34,860,000)
'
Bond premium
(97,269)
ADEC loans
(72,028)
Net pension and OPEB obligation
(1,396,222)
Accrued interest expense
(434,366)
'
Compensated absences
(176,026)
(37,035,911)
Net assets of governmental activities
$
114,981,573
See accompanying notes to the financial statements.
fJ
'
KODIAK ISLAND BOROUGH
Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficits)
Governmental Funds
Year ended June 30, 2008
(With summarized financial information for the year ended June 30, 2007)
Various
Facilities Education and Borough
School Bond
Other
Special Health Debt Capital
Capital
Governmental
Totals
General
Revenue Fund Service Fund Projects
Projects
Funds
2008
2007
Revenues:
Property taxes
$ 9,356,531
- - -
-
897,946
10254,477
9,750,682
Intergovernmental:
State sources
State sources
2,131,673
1,801,750 68,035
427,014
4,428,472
4,012,647
Federal sources
1,145,068
- - 204,106
-
1, 1 04,816
2,553,990
1,417,403
Land sale proceeds
19,458
19,458
47,087
Severance taxes
1,436,210
- - -
-
-
1,436,210
1,316,689
Licenses, permits, fees, and
other local revenues
100,256
- -
558,125
658,381
690,
investment income
544,926
2,046,071 30,330 30,953
1,030,959
234,769
3,918,008
3,751,609
'
Other
44,652 2,400
306,798
353,850
633,923
Total revenues
14,714,664
2,046,071 1,876,732 305,494
1,030,959
3,648,926
23,622,846
21,621,002
Expenditures:
Current;
ral government
General
2,849,822
26,920
941,802
3,818,544
4,504,052
Public Safety
-
_ -
-
-
385,529
385,529
-
Community and
economic development
864,065
- - -
-
59,138
923,203
786,614
Emergency preparedness
5,713
- - -
-
-
5,713
7,884
and sanitation
and
Health s
81,974
387,053
373,132
depa
305,079
Education, culture
and recreation
183,747
- - -
-
-
] 83,747
158,161
Service district maintenance
-
- - -
-
374,320
-
374,320
9,123,412
498,539
8,387,440
Primary and secondary education
9,123,412
- - -
-
Capital outlay.
Schools
2,749,625
3,271,657
1,008,346
7,029,628
1,436,639
'
General
-
- - 209,324
-
677,865
887,189
373,038
Debt service:
Principal
-
- 2,205,441 -
-
-
2 205,441
2,100,361
Interest
- 1255,313 -
-
7,863
1,263,176
1,336,349
Total expenditures
13,331,838
- 3,487,674 2,958,949
3,271,657
3,536,837
26,586,955
19,962,209
1
Excess of revenue over
(under) expenditures
1,382,826
2,046,071 (1,610,942) (2,653,455)
(2,240,698)
112,089
(2,964,]09)
1,658,795
Other financing (uses) sources:
8,000,000
-
8,000,000
-
Proceeds from sale of bonds
Transfers in
Transfers out
=
(945,660)
_ _
1,661,460 1,100,000
(1,814,610)
205,150
(79,290)
2,966,610
(2,839,560)
2,626,853
(2,464,210)
Net other financing
sources (uses)
(945,660)
(1,814,610) 1,661,460 1,100,000
8,000,000
125,860
8,127,050
162,643
Net change in fund balances
437,166
231,461 50,518 (1,553,455)
5,759,302
237,949
5,162,941
1,821,438
'
Fund balances (deficit), at beginning of year
2,793,313
39,638,397 (60,380) 1,049,359
20,457,663
3,411,601
67
65,468,515
Fund balances (deficits), at end of the year
$ 3,230,479
39,869,858_ 9,862 (504,096)
26,216,965
3,649,550
72,452,894
67,289,953
1 See accompanying notes to financial statements.
1
25
1
1
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, 2008
Net change in fund balances — total governmental funds
Amounts reported for governmental activities in the statement of
activities are different because:
Governmental funds report capital outlays as expenditures.
However, in the statement of activities the cost of those assets
is allocated over their estimated useful lives and reported as
depreciation expense:
Capital outlay
Depreciation expense
The net effect of various miscellaneous transactions involving
capital assets (i.e., sales, trade -ins, and donations) is to
decrease net assets:
Revenues in the statement of activities that do not provide current
financial resources and are deferred in the funds:
Deferred property tax
Interest income
Land sale proceeds
Revenues that were earned in a prior year and provide
current financial resources:
Accrued property tax
Accrued interest income
Land sale contracts
Note receivable - Fern Fuller Trust
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:
Accrued interest expense
Issuance of long term debt
Principal repayments
Amortized debt issuance costs
Bond premium amortization
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 decrease in expense
Compensated absences, net change
Change in net assets of governmental activities
$ 8,750,651
(2,899,088)
96,894
99,050
176,641
(232,770)
(104,913)
(193,155)
(20,025)
(5,064)
(8,000,000)
2,205,441
(2,183)
6,080
(1,001,542)
(3,614)
1
$ 5,162,941 '
5,851,563
(119,881)
372,585 '
(550,863)
(5,795,726)
(1,005,156)
$ 3,915,463
1�
0
See accompanying notes to the financial statements.
26
I
KODIAK ISLAND BOROUGH
Balance Sheet
Proprietary Funds - Business -type Activities - Enterprise Funds
June 30, 2008
(With summarized financial information for June 30, 2007)
Assets
Current assets:
Equity in central treasury
Accrued interest receivable
Customer receivables
Accounts receivable - State of Alaska
Total current assets
Inventories
Capital assets:
Non - depreciable
Depreciable, net
Total capital assets
Total noncurrent assets
Total
Liabilities and Net Assets
Current liabilities:
Accounts payable
Deferred revenue
Accrued compensation and
related liabilities
Other accrued liabilities
Current portion of capital
lease obligations
Current portion of advances
from other funds
Due to other funds
Total current liabilities
Noncurrent liabilities:
Notes payable
Advances from other funds
Net pension and OPEB obligation
Accrual for landfill closure
and postclosure
costs
Total noncurrent liabilities
Total liabilities
Net Assets:
Invested in capital assets,
net of related debt
Unrestricted
Total Net Assets
Total
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Totals
Disposal
Facilities
Center
Fund
2008
2007
$ 5,067,444
615,841
3,312,433
11,034
9,006,752
7,664,499
-
-
-
8,887
8,887
9,320
456,160
44,100
26,312
-
526,572
473,889
100,000
-
-
-
100,000
100,000
5,623,604
659,941
3,338,745
19,921
9,642,211
8,247,708
-
277,007
-
-
277,007
277,007
2,189,235
710,441
-
-
2,899,676
2,421,084
3,488,617
17,007,709
13,322,026
-
33,818,352
35,632,541
5,677,852
17,718,150
13,322,026
-
36,718,028
38,053,625
5,677,852
17,995,157
13,322,026
-
36,995,035
38,330,632
$ 11,301,456
18,655,098
16,660,771
19,921
46,637,246
46,578,340
$ 335,484
371,160
74,389
29,570
810,603
420,997
-
-
182,453
-
182,453
155,426
37,512
-
23,430
-
60,942
40,967
184,165
-
-
-
184,165
168,021
242,771
-
-
-
242,771
218,150
-
65,225
360,000
-
425,225
397,693
-
-
99,050
-
99,050
104,913
799,932
436,385
739,322
29,570
2,005,209
1,506,167
1,768,660
-
-
-
1,768,660
1,636,924
-
1,244,725
5,300,000
-
6,544,725
6,969,951
336,458
-
96,230
-
432,688
122,311
4,041,730
-
-
-
4,041,730
3,222,587
6,146,848
1,244,725
5,396,230
-
12,787,803
11,951,773
6,946,780
1,681,110
6,135,552
29,570
14,793,012
13,457,940
3,909,192
17,718,150
13,322,026
-
34,949,368
36,416,701
445,484
(744,162)
(2,796,807)
(9,649)
(3,105,134)
(3,296,301)
4,354,676
16,973,988
10,525,219
(9,649)
31,844,234
33,120,400
$ 11,301,456
1 8,6 s 55,098
16,660,771
19,921
46,637,246
46,578,340
See accompanying notes to financial statements.
27
KODIAK ISLAND BOROUGH I
i
s
28 1
Statement of Revenues, Expenses,
and Changes in Fund Net Assets
Proprietary Funds - Business -type Activities
- Enterprise
Funds
'
Year ended June
30, 2008
(With summarized financial
information for the year ended June 30, 2007)
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Totals
Disposal
Facilities
Center
Fund
2008
2007
,
Operating revenues:
Solid waste collection $
2,839,830
-
-
-
2,839,830
2,748,563
Solid waste disposal
1,071,941
-
-
-
1,071,941
1,184,422
Charges for services /customer charges
-
-
-
54,925
54,925
62,698
Lease income
-
720,000
1,616,992
-
2,336,992
2,660,710
Other
1,920
-
-
-
1,920
27,771
Total operating revenues
3,913,691
720,000
1,616,992
54,925
6,305,608
6,684,164
Operating expenses:
Personnel services
938,916
5,871
334,442
3,000
1,282,229
907,279
Solid waste collection
1,257,731
-
-
-
1,257,731
1,123,231
Refuse disposal
346,396
-
-
-
346,396
265,315
Contracted services
446,764
-
-
-
446,764
176,045
Maintenance and repairs
77,960
5,825
-
-
83,785
41,960
,
Landfill closure and postclosure costs
819,143
-
-
-
819,143
(36,350)
Depreciation
265,885
988,579
726,745
-
1,981,209
2,087,835
General and administration
225,018
12,949
490,384
190
728,541
618,778
Miscellaneous
-
-
73,798
-
73,798
72,221
Telephone services
6,613
-
-
104,790
111,403
60,962
'
Recycling services
231,085
-
-
-
231,085
168,963
Contributions
13,315
-
-
-
13,315
11,783
Total operating expenses
4,628,826
1,013,224
1,625,369
107,980
7,375,399
5,498,022
Operating income (loss)
(715,135)
(293,224)
(8,377)
(53,055)
(1,069,791)
1,186,142
'
Nonoperating revenues (expenses):
Contribution to Providence Hospital
-
(57,141)
-
-
(57,141)
(150,000)
Investment income
247,788
21,999
161,933
2,444
434,164
274,126
Interest expense
-
(54,285)
(402,063)
-
(456,348)
(481,882)
'
Income (loss) before transfers
(467,347)
(382,651)
(248,507)
(50,611)
(1,149,116)
828,386
Transfers in
6,450
66,500
-
-
72,950
72,950
Transfers out
-
(200,000)
-
-
(200,000)
(235,593)
Net other financing sources (uses)
6,450
(133,500)
-
-
(127,050)
(162,643)
Net change in net assets
(460,897)
(516,151)
(248,507)
(50,611)
(1,276,166)
665,743
Net assets, at beginning of year,
4,815,573
17,490,139
10,773,726
40,962
33,120,400
32,454,657
Net assets, at end of year $
4,354,676
16,9 73,988
10,525,219
31,844,234
33,120,400
See accompanying notes to financial statements.
i
s
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KODIAK ISLAND BOROUGH
Statement of Cash Flows
Proprietary Funds - Business -type Activities - Enterprise Funds
Year ended June 30, 2008
(With summarized financial information for the year ended June 30, 2007)
29
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Totals
Disposal
Facilities
Center
Fund
2008
2007
Cash flows from operating activities:
Cash received from customers
$ 3,931,420
675,900
1,617,707
54,925
6,279,952
6,610,265
Payments to suppliers
(2,581,149)
351,337
(523,847)
(133,410)
(2,887,069)
(2,421,679)
Payments to employees
(686,002)
(5,871)
(257,004)
(3,000)
(951,877)
(915,785)
Internal activity - payments to /from other funds
-
2,532
19,137
-
21,669
99,488
Net cash provided (used) by
operating activities
664,269
1,023,898
855,993
(81,485)
2,462,675
3,372,289
Cash flows from noncapital financing activities:
-
(57,141)
-
-
(57,141)
(150,000)
Contribution to Providence Hospital
6,450
66,500
-
-
72,950
72,950
Transfers in
Transfers out
-
(200,000)
-
-
(200,000)
(235,593)
Net cash provided (used) by
noncapital financing activities
6,450
(190,641)
-
-
(184,191)
(312,643)
Cash flows from capital and related
financing activities:
Acquisition and construction of capital assets
(173,463)
(445,387)
(26,762)
-
(645,612)
(282,741)
Interest paid on notes payable, capital leases,
(402,063)
-
(456,348)
(481,882)
and interfund borrowings
-
(54,285)
Principal payments on long -term
interfund borrowing
-
(65,225)
(360,000)
-
(425,225)
(710,259)
Proceeds from issuance of notes payable
156,357
-
-
-
-
-
156,357
-
108,424
(54,291)
Principal payments on capital lease obligation
-
-
Net cash provided (used) by capital and
related financing activities
(17,106)
(564,897)
(788,825)
-
(1,370,828)
(1,420,749)
Cash flows from investing activities:
Interest and dividends on investments
247,788
21,999
161,933
2,877
434,597
302,691
Net change in cash and
cash equivalents
901,401
290,359
229,101
(78,608)
1,342,253
1,941,588
Cash and equivalents, at beginning of year
4,166,043
325,482
3,083,332
89,642
7,664,499
5,722,911
Cash and equivalents, at the end ofyear
$ 5,067,444
615,841
3,312,433
11,034
9,006,752
7,664,499
(continued)
29
Reconciliation of operating income (loss) to net
cash provided by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
Changes in assets and liabilities that
provided (used) cash:
(increase) decrease customer receivables
Increase (decrease) due to /from other funds
Increase (decrease) in Accounts payable
Unearned revenues
Accrual for landfill closure and
postclosure costs
Accrued compensation and
related liabilities
Other accrued liabilities
Net cash provided (used) by
operating activities
Noncash capital and related financing activities:
Interest paid
See accompanying notes to financial statements,
KODIAK ISLAND BOROUGH
Statement of Cash Flows
Proprietary Funds – Business -type Activities – Enterprise Funds, Continued
Year ended June 30, 2008
(With summarized financial information for the year ended June 30, 2007)
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Totals
Disposal
Facilities
Center
Fund
2008
2007
$ (715,135)
(293,224)
(8,377)
(53,055)
(1,069,791)
1,186,142
265,885
988,579
726,745
—
1,981,209
2,087,835
17,729
(44,100)
(26,312)
—
(52,683)
191,785
2,532
19,137
—
21,669
99,488
7,589
370,111
40,335
(28,430)
389,605
196,503
—
—
27,027
—
27,027
(265,684)
819,143
—
—
—
819,143
(36,350)
252,914
—
77,438
—
330,352
(8,506)
16,144
—
—
—
16,144
(78,924)
$ 664,269
1,023,898
855,993
(81,485)
2,462,675
3,372,289
$ —
(54,285)
(402,W2)
—
(456,347)
(481,882)
30
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
' June 30, 2008
(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
both the government -wide and fund 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 capital 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
11
f]
1
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 inter -fund 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.
31
n
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
(c)
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.
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 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 ail financial resources
of the general government, except those required to be accounted for in another fund.
The Facilities Special Revenue Fund accounts for the proceeds from the sale of Shuyak Island. The
single most 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 Education and Health Debt Service 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 Capital Projects Fund accounts for the construction and acquisition of capital
assets for all Borough functions.
The School Bond Capital Projects Fund accounts for the construction and major maintenance
activities for the Borough's educational facilities funded by school bonds.
32
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I KODIAK ISLAND BOROUGH
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 inter -fund and 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.
1
1 33
1
Notes to Basic Financial Statements
June 30, 2008
I
The government reports the following major proprietary funds:
The Municipal Solid Waste Collection and Disposal Fund accounts for the collection and disposal of
solid waste and recycling services for the Kodiak Island Borough.
The Hospital Facilities Fund 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 inter -fund and 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.
1
1 33
1
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
(d)
Assets, Liabilities, and Fund Equity/Net Assets
Cash and Investments
Cash and temporary investments of Borough funds are pooled in a central treasury. Each fund's
portion of this pool is displayed on the balance sheet as "Cash and Investments ". 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
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.
All highly liquid investments, excluding restricted assets, with original maturities of ninety 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 are 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 are representative of lending /borrowing arrangements outstanding at the
end of the fiscal year are referred to as either "due to /from other funds" (i.e., the current portion of
inter -fund loans) or "advances to /from other funds" (i.e., the noncurrent portion of inter -fund loans).
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.
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. The entire Hospital Enterprise
Fund inventory is assigned to Providence as of April 21, 1997. According to the terms of the lease
34
I KODIAK ISLAND BOROUGH
I 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.
Long -term Obligations
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 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.
1 35
Notes to Basic Financial Statements
June 30, 2008
agreement for the hospital facilities (see note 11 a), those items 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 the 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 assets 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 is depreciated using the straight line
method over the following estimated useful lives:
Buildings and improvements 10-40 years
Improvements other than buildings 10 -15 years
Equipment 5 -10 years
Infrastructure 40 years
I 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.
Long -term Obligations
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 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.
1 35
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
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.
Net Assets
In the government -wide financial statements, net assets are reported in three categories; net assets
invested in capital assets net of related debt, restricted net assets and unrestricted net assets.
Net assets are reported as restricted when constraints placed on net asset use are either externally
imposed by creditors (such as through debt covenants), grantors, contributors provisions or laws or
regulations of other governments or imposed by law through constitutional provisions or enabling
legislation.
(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 1 st.
Taxes are due when billed and generally become delinquent on or after October 16th. 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.
36
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
Severance Taxes
Severance taxes are based on the amount and value of natural resources severed from the
environment. Types of resources taxed include seafood, gravel and mineral resources, and timber.
Severance tax returns are sent to appropriate companies (as determined by the Borough Assessor)
and are returned to the Borough Finance Department. The returns are filed quarterly, and are due by
the end of the month following the quarter's end. Borough severance tax revenues are recognized in
the fiscal year in which they become measurable and available.
Intergovernmental Revenue
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.
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 from 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 defmition 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 modified accrual basis.
Other local revenues are recorded on a basis consistent with their nature in relation to measurement
and availability standards.
(� 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.
37
r
KODIAK ISLAND BOROUGH r
Notes to Basic Financial Statements
June 30, 2008
(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 over Appropriations
Special Revenue Funds
The following fund expenditures exceeded their budget:
Fund Excess
Monashka Bay Road Service Area $ 23,978
Womens Bay Road Service Area 4,847
Bay View Road Service Area 3,073
Tourism Development 8
$ 31,906
(b) Deficit Fund Equity
The individual fund deficits at June 30, 2008, are as follows:
Special Revenue Funds:
Bay View Road Service Area
$
3,072
'
Child Care Assistance Program
731
L.E.P.C.
14,623
Kodiak Arts Council
1,968
Trinity Acres Paving
110,161
$
130,555
Debt Service Funds:
Education and Health Debt Service Fund
$
9,862
Capital Projects Funds:
Various Borough Projects
$
504,096
Enterprise Funds:
911 Services Fund
$
9,649
The deficit in the Trinity Acres Paving Special Revenue Fund is
anticipated to be funded by a special
assessment that began in 2006.
38
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I
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
The deficit in the Various Borough Capital Projects Fund will be funded by a transfer from General
Obligation Bond Projects in FY2009.
The deficit in 911 Services Fund will be funded by a consumer charge on telephones in FY2009.
(3) Cash and Investments
As of June 30, 2008, the Borough had the following investments:
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, banker's acceptances, repurchase
agreements, and such other legal security instruments.
At June 30, 2008, the Borough's U.S. agencies bonds were rated AAA by Standard & Poor and Fitch
Ratings, and AAA by Moody's Investor Service. At June 30, 2008, 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, 2008,
the Borough had 78% percent of its investments in U.S. Government agency securities.
' 39
Investment maturities (in years)
Fair
Less
Investment type
value
than 1 1 to 5
U.S. agency securities:
Federal Home Loan Bank $
42,194,777
31,676,640 10,518,137
Federal Home Loan Mortgage Corporation
2,901,679
2,901,679 —
Federal Mortgage Corporation Discount Note
3,992,400
3,992,400
Federal National Mortgage Association
6,095,459
6,095,459 —
Federal Farm Credit Bank
6,120,584
6,120,584 —
Alaska Municipal League Investment Pool
14,834,395
14,834,395 —
Certificates ofDeposit
1,953,400
995,210 958,190
$
78,092,694
66,616,367 11,476,327
In addition to the investments listed above, Kodiak Island Borough also had cash equivalents of $657,641.
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, banker's acceptances, repurchase
agreements, and such other legal security instruments.
At June 30, 2008, the Borough's U.S. agencies bonds were rated AAA by Standard & Poor and Fitch
Ratings, and AAA by Moody's Investor Service. At June 30, 2008, 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, 2008,
the Borough had 78% percent of its investments in U.S. Government agency securities.
' 39
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
Custodial Credit Risk — Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the Borough's deposits may not be
returned to it. The Borough requires all deposits to be insured or collateralized. At June 30, 2008, the
carrying amount of the Borough deposits was $700,000 and the corresponding bank balance was $670,000.
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
$570,000. Collateral, in the amount of $709,213, is held by 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, 2008.
(4) Annual Appropriation to the School District
An annual appropriation is made to the School District. 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.
(5) Receivables
1
L
40 1
Various
Education and
Borough
Other
General
Health Debt
Capital
Governmental
Enterprise
Fund
Service Fund
Projects
Funds
Funds
Total
Receivables:
Grants
$ 84,694
370,852
272,141
421,659
100,000
1,249,346
Taxes
469,094
—
—
11,770
—
480,864
Customers and other
—
—
—
54,137
535,459
589,596
Notes receivable
2,365
—
38,672
—
41,037
Gross receivables
556,153
370,852
172, 41
5
,459
360,8
Less: allowance for uncollectibles
(15,828)
—
—
—
—
(15,828)
Net total receivables
$ 540,325
370,852
272,141
526,238
635,459
2,345,015
1
L
40 1
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
1
1 41
(6) Capital Assets
As noted in Footnote (11), the Borough
leases the Kodiak Island Hospital and Care Center to Sisters of
Providence. The value of the leased assets and associated depreciation are reflected in the Hospital Fund
following.
Capital asset activity for the year ended June 30, 2008 was as follows:
Beginning
Ending
Balance
Increase
Decrease
Balance
Governmental activities:
Capital assets, not being
depreciated:
Land
$ 23,187,184
—
(114,431)
23,072,753
Construction
work -in- progress
6,626,411
7,916,817
—
14,543,228
Total
29,813,595
7,916,817
(114,431)
37,615,981
Capital assets, being depreciated:
Buildings and improvements
90,579,601
—
—
90,579,601
Improvements other than
buildings
3,964,683
—
—
3,964,683
Equipment
2,048,785
833,834
(129,496)
2,753,123
Infrastructure
5,762,722
—
—
5,762,722
Total
102,355,791
833,834
(129,496)
103,060,129
Less accumulated depreciation for:
Buildings and improvements
50,372,687
2,311,868
52,684,555
Improvements other than
=
buildings
3,055,030
300,228
3,355,258
Equipment
1,393,290
142,924
(124,046)
1,412,168
Infrastructure
3,922,985
144,068
—
4,067,053
Total
58,743,992
2,899,088
(124,046)
61,519,034
Total capital assets
being depreciated
43,611,799
(2,065,254)
(5,450)
41,541,095
Total governmental
activities, net
$ 73,425,394
5,851,563
(119,881)
79,157,076
1
1 41
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
Business -type activities:
Municipal Solid Waste Collection
and Disposal Fund capital assets,
not being depreciated:
Land
Construction work -in- progress
Total
Capital assets, being depreciated:
Unclassified utility plant in
service
Improvements other than
buildings
Machinery and equipment
Total
Less accumulated depreciation for:
Unclassified utility plant in
service
Improvements other than
buildings
Machinery and equipment
Total
Total capital assets
being depreciated, net
Total Municipal Solid
Waste Collection
and Disposal Fund, net
Beginning
Balance Increase
Ending
Decrease Balance
$ 1,651,248
—
—
1,651,248
484,252
53,735
—
537,987
2,135,500
53,735
—
2,189,235
2,178,733
—
—
2,178,733
2,288,438
—
—
2,288,438
1,776,409
119,728
(63,169)
1,832,968
6,243,580
119,728
(63,169)
6,300,139
905,258
47,124
—
952,382
538,196
126,616
—
664,812
1,165,352
92,145
(63,169)
1,194,328
2,608,806
265,885
(63,169)
2,811,522
3,634,774 (146,157) — 3,488,617
$ 5,770,274 (92,422) — 5,677,852
42
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
Hospital Facilities Fund capital
assets, not being depreciated:
Artwork
Land
Construction work -in- progress
Total
Capital assets, being depreciated:
Buildings
Improvements other than
buildings
Machinery and equipment
Total
Less accumulated depreciation for:
Buildings
Improvements other than
buildings
Machinery and equipment
Total
Total capital assets being
depreciated, net
Total Hospital Facilities
Fund, net
Kodiak Fisheries Research Center Fund
capital assets, being depreciated:
Buildings
Improvements other than buildings
Machinery and equipment
Total
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Total
Total Kodiak Fisheries
Beginning
Ending
Balance Increase Decrease
Balance
20,530
$ 16,091 — —
16,091
10,251 — —
10,251
259,242 424,857 —
684,099
285,584 424,857 —
710,441
27,131,044 — — 27,131,044
401,046
—
— 401,046
3,606,538
20,530
— 3,627,068
31,138,628
20,530
— 31,159,158
20,019,948
10,081,631
885,922
— 10,967,553
99,504
26,737
— 126,241
2,981,735
75,920
— 3,057,655
13,162,870
988,579
— 14,151,449
17,975,758 (968,049) — 17,007,709
$ 18,261,342 (543,192) — 17,718,150
$ 17,840,410
—
— 17,840,410
1,021,998
26,762
— 1,048,760
1,157,540
—
— 1,157,540
20,019,948
26,762
— 20,046,710
4,755,681
594,680
— 5,350,361
272,533
34,145
— 306,678
969,725
97,920
— 1,067,645
5,997,939
726,745
— 6,724,684
$ 14,022,009
(699,983)
— 13,322,026
43
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
44
Beginning
Ending
Balance
Increase
Decrease
Balance
Total business -type activities:
Capital assets, not being
depreciated:
Artwork
$ 16,091
—
—
16,091
Land
1,661,499
—
—
1,661,499
Construction work -in- progress
743,494
478,592
—
1,222,086
Total
2,421,084
478,592
—
2,899,676
Capital assets, being depreciated:
Unclassified utility plant in
service
2,178,733
—
—
2,178,733
Buildings
44,971,454
—
—
44,971,454
Improvements other than
buildings
3,711,482
26,762
—
3,738,244
Machinery and equipment
6,540,487
140,258
(63,169)
6,617,576
Total
57,402,156
167,020
(63,169)
57,506,007
Less accumulated depreciation for:
Unclassified utility plant in
service
905,258
47,124
—
952,382
Buildings
14,837,312
1,480,602
—
16,317,914
Improvements other than
buildings
910,233
187,498
—
1,097,731
Machinery and equipment
5,116,812
265,985
(63,169)
5,319,628
Total
21,769,615
1,981,209
(63,169)
23,687,655
Total capital assets
being depreciated, net
35,632,541
(1,814,189)
—
33,818,352
Total business -type
activities, net
$ 38,053,625
(1,335,597)
—
36,718,028
44
1
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
1
1
1
1
1
1
1
1
L
1
1
June 30, 2008
Depreciation expense was charged to the departments and functions of the primary government as follows:
Governmental activities:
General government
Public safety
Emergency preparedness
Health and sanitation department
Primary and secondary education
Total — governmental activities
Business -type activities:
Municipal Solid Waste Collection and
Disposal
Hospital Facilities
Kodiak Fisheries Research Center
Total — business -type activities
Total
(7) Interfund Receivables, Payables and Transfers
(a) Interfund Receivables and Payables
Interfund balances at June 30, 2008 consisted of the following:
$ 333,746
124,168
2,500
37,926
2,400,748
2,899,088
265,885
988,579
726,745
1,981,209
$ 4,880,297
The balance of $5,759,050 due the Facilities Fund from the K.F.R.C. Fund resulted from a loan of
$8,000,000 that was made to help pay for the construction of the building. $5,300,000 is not
scheduled to be paid in FY2009.
The balance of $1,309,950 due the Facilities Fund from the Hospital Fund resulted from a loan of
$1,600,000 that was made to pay for part of the cost of a lawsuit. $1,244,725 is not scheduled to be
paid in FY2009.
All remaining balances were short term loans to cover negative cash balances at year end.
45
�l
Due From
Education
and Health
Hospital
All
Debt Service
Fund K. F. R. C.
Others
Total
General Fund
$ 400,000
— —
109,926
509,926
Facilities Fund
—
1,309,950 5,759,050
154,423
7,223,423
v
Various Borough Capital Projects
—
— —
50,000
50,000
Total
$ 400,000
1,309,950 5,759,050
314,349
7,783,349
The balance of $5,759,050 due the Facilities Fund from the K.F.R.C. Fund resulted from a loan of
$8,000,000 that was made to help pay for the construction of the building. $5,300,000 is not
scheduled to be paid in FY2009.
The balance of $1,309,950 due the Facilities Fund from the Hospital Fund resulted from a loan of
$1,600,000 that was made to pay for part of the cost of a lawsuit. $1,244,725 is not scheduled to be
paid in FY2009.
All remaining balances were short term loans to cover negative cash balances at year end.
45
�l
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
The outstanding balances between funds result from the time lag between the dates that (1) inter -
fund goods and services are provided or reimbursable expenditures occur, (2) transactions are
recorded in the accounting system, and (3) payments between funds are made.
(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. This loan was to help finance the construction of the Kodiak
Fisheries Research Center. The loan from the Facilities Special Revenue Fund is accounted for as a
long -term inter -fund advance, while the liability in the Kodiak Fisheries Research Center Enterprise
Fund is accounted for as a long -term inter -fund borrowing. The advance bears interest at 7 %, and the
scheduled payments for the next five fiscal years ended and thereafter are as follows:
Year ending June 30:
2009
2010
2011
2012
2013
2014 -2018
2019
Principal
360,000
385,000
410,000
440,000
470,000
2,890,000
705,000
Interest Total
383,600
357,525
329,700
299,950
268,100
780,150
24,675
743,600
742,525
739,700
739,950
738,100
3,670,150
729,675
$ 5,660,000 2,443,700 8,103,700
In July 2003, the Facilities Special Revenue Fund loaned $1,600,000 to the Hospital Facilities
Enterprise 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
Year ending June 30:
2009
2010
2011
2012
2013
2014 -2018
2019 -2023
65,225
67,861
70,603
73,455
76,423
430,998
525,385
Interest
51,753
49,117
46,375
43,523
40,555
153,894
59,508
Total
116,978
116,978
116,978
116,978
116,978
584,892
584,893
$ 1,309,950 444,725 1,754,675
46
L 7
1
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
(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, 2008, were as
follows:
Transfers In
Governmental Funds Enterprise Funds
Education varms Municipal
and Health Borough Other Solid Waste Hospital
Debt Service Capital Governmental Collection and Facilities
Fund Projects Funds Disposal Fund Fund Totals
Transfers Out
Major Governmental Funds:
General Fund $ 539,210 400,000 — 6,450 — 945,660
Facilities Special Revenue Fund 922,250 700,000 192,360 _ — 1,814,610
Other Governmental Funds 12,790 66,500 79,290
Major Enterprise Fund:
Hospital Facility Fund 200,000 — — — — 200,000
Total transfers $ 1,661,460 1,100,000 205,150 6,450 66,500 3,039,560
A summary of significant transfers are as follows:
• The General Fund transferred $539,210 to the Education and Health Debt Service Fund to
pay for debt service on general government debt.
' • The General Fund transferred $400,000 to the Borough Capital Projects Fund to pay for
seismic repairs to school buildings.
• The General Fund transferred $6,450 to the Municipal Solid Waste Collection and Disposal
Fund to pay for garbage disposal for area thrift shops.
• The Facilities Special Revenue Fund transferred $922,250 to the Education and Health Debt
Service Fund for debt service on hospital bonds.
• The Facilities Special Revenue Fund transferred $700,000 to Various Borough Capital
Projects Fund for various capital projects.
• The Facilities Special Revenue Fund transferred $192,360 to the Building and Grounds
1 Special Revenue Fund to pay for building insurance.
• The Fuller Trust Special Revenue Fund transferred $66,500 to the Hospital Enterprise Fund
for the purchase of new equipment.
• The Hospital Facilities Enterprise Fund transferred $200,000 to the Education and Health
Debt Service Fund to pay for debt service on hospital related debt.
• The Kodiak Airport Fire District transferred $12,790 to the Womans Bay Fire Department
for fire protection.
47
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
(8) 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 obligations and pledge the full faith and credit of the
Borough. General obligation bonds and other debt currently outstanding are as follows:
General obligation
bonds — 2000 E Series
4.75 -5.0% 8/1 -2/1 12/12/2000 2/1/2011
2/l/2009 165,000
2/l/2010 175,000
2/1/2011 180,000
520,000
General obligation
bonds — 2000 F Series
6.9 -9.0% 8/1 -2/1 12/12/2000 2/1/2011 2 /1/2009 140,000
2/l/2010 150,000
2/1/2011 160,000
450,000
48
Interest Principal
payments
Type of debt
Rates Dates Issue date Maturity dates Dates
Amount
General obligation
bonds — 1998 Series
3.25 -4.30% 8/15 -2/15 12/22/1998 2/15/2014 2/15/2009
1,200,000
2/15/2010
1,250,000
2/15/2011
1,305,000
2/15/2012
1,360,000
2/15/2013
1,420,000
2/15/2014
1,480,000
8,015,000
General obligation
bonds — 2000 E Series
4.75 -5.0% 8/1 -2/1 12/12/2000 2/1/2011
2/l/2009 165,000
2/l/2010 175,000
2/1/2011 180,000
520,000
General obligation
bonds — 2000 F Series
6.9 -9.0% 8/1 -2/1 12/12/2000 2/1/2011 2 /1/2009 140,000
2/l/2010 150,000
2/1/2011 160,000
450,000
48
t
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
Authorized
Prior years Balance at
Retired(
Balance at
Fiscal year Amount
Issued Retired July 1,2007 Issued
Refunded
June 30, 2008
1999 9,740,000
9,740,000 575,000 9,165,000 —
1,150,000
8,015,000
2001 1,485,000
1,485,000 805,000 680,000 —
160,000
520,000
2001 1,175,000
1,175,000 595,000 580,000 —
130,000
450,000
49
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
Interest
Principal payments
11/1/2009
Type of debt Rates Dates
Issue date Maturity dates Dates
Amount
General Obligation
475,000
11/1/2012
bonds - 2004 C Series 4.0 -5.0% 1/1 -7/1
7/7/2004 7/l/2024 7/1/2009
350,000
11/1/2014
7/1/2010
365,000
550,000
7/1/2011
385,000
11/1/2017
7/1/2012
400,000
620,000
7/1/2013
415,000
11/1/2020
7/1/2014
435,000
705,000
7/1/2015
450,000
11/1/2023
7/1/2016
470,000
815,000
7/1/2017
485,000
7/1/2018
510,000
7/1/2019
530,000
7/1/2020
555,000
7/1/2021
580,000
7/1/2022
605,000
7/1/2023
635,000
7/1/2024
665,000
7,835,000
General obligation
bonds - 2004 D Series 3.0 -5.0% 5/1 -11/1 12/1/2004 11/1/2024 11/1/2008
435,000
11/1/2009
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
11/1/2015
550,000
11/1/2016
570,000
11/1/2017
595,000
11/1/2018
620,000
11/1/2019
650,000
11/1/2020
675,000
11/1/2021
705,000
l l / 1/2022
740,000
11/1/2023
775,000
11/1/2024
815,000
10,040,000
50
Aut horized
i Fiscal year
1
1
1
1
1 2004
1
1
1
1
1
1
1
1
Amount
9,300,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
Prior years Balance at Retired/ Balance at
Issued Retired July 1,2007 Issued Refunded June 30, 2008
9,300,000 1,125,000 8,175,000
11,050,000 11,050,000 590,000 10,460,000
51
340,000 7,835,000
420,000 10,040,000
Type of debt
General obligation
bonds - 2008 A Series
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
Interest Principal payments
Rates Dates Issue date Maturity dates Dates Amount
4.0 -5.0%
ADEC loans
Clean water - Karluk 3.92 -4.05%
4/1 -10 /1 4/15/2008 4/1/2028 04/01/09
250,000
04/01/10
260,000
04/01/11
275,000
04/01/12
290,000
04/01/13
300,000
04/01/14
320,000
04/01/15
335,000
04/01/16
350,000
04/01/17
370,000
04/01/18
380,000
04/01/19
400,000
04/01/20
415,000
_ 04/01/21
430,000
04/01/22
450,000
04/01/23
470,000
04/01/24
490,000
04/01/25
515,000
04/01/26
540,000
04/01/27
565,000
04/01/28
595,000
8,000,000
* * * * * * 6/l/2009
5,523
6/1/2010
5,606
6/1/2011
5,690
6/1/2012
5,775
6/1/2013
5,862
6/1/2014
5,950
6/1/2015
6,039
6/1/2016
6,130
6/1/2017
6,222
6/1/2018
6,315
6/1/2019
6,410
6/1/2020
6,506
72,028
$
34,932,028
52
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
Authorized
Fiscal year Amount
2008 8,000,000
Prior years Balance at Retired/ Balance at
Issued Retired July 1,2007 Issued Refunded June 30,2008
8,000,000
8,000,000
1998 400,000 88,299 10,829 77,470 — 5,442 72,028
$ 41,150,000 32,838,299 3,700,829 29,137,470 8,000,000 2,205,442 34,932,028
53
1
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
The annual requirements to amortize all general obligation bonded debt and the ADEC loan payable
outstanding as of June 30, 2008, 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.
(b) Note Payable
As of June 30, 2008, the Borough had the following note payable outstanding in the Enterprise
Funds:
Note payable to Alaska Department of Environmental Conservation
(ADEC), to be paid within 20 years. From June 2, 1999 until
April 28, 2005 interest accrued at 2.5 %. From April 29, 2005 to
June 30, 2008 interest accrued at 1.5 %. The first loan payment is
due one year following substantial completion and initiation
of operation of the facility
54
1
1
r
1
Ll
1
$ 1,768,660 ,
L
u
f '
General
ADEC
obligation
loan payable
Interest
Total
Year ending June 30:
2009
$ 2,540,000
5,523
1,777,349
2,545,523
2010
2,645,000
5,606
1,691,664
2,650,606
2011
2,765,000
5,690
1,591,567
2,770,690
2012
2,525,000
5,775
1,483,714
2,530,775
2013
2,625,000
5,862
1,387,023
2,630,862
2014 -2018
8,340,000
30,656
5,826,356
8,370,656
2019 -2023
8,460,000
12,916
4,577,774
8,472,916
2024 -2028
4,960,000
—
3,270,770
4,960,000
$ 34,860,000
72,028
21,606,217
34,932,028
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.
(b) Note Payable
As of June 30, 2008, the Borough had the following note payable outstanding in the Enterprise
Funds:
Note payable to Alaska Department of Environmental Conservation
(ADEC), to be paid within 20 years. From June 2, 1999 until
April 28, 2005 interest accrued at 2.5 %. From April 29, 2005 to
June 30, 2008 interest accrued at 1.5 %. The first loan payment is
due one year following substantial completion and initiation
of operation of the facility
54
1
1
r
1
Ll
1
$ 1,768,660 ,
L
u
f '
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
' 55
(c) Changes in Long -terns Liabilities
'
Long liability for the
June 30, 2008, follows:
-term activity
year ended
was as
Balance
Balance
June 30,
June 30,
Due within
2007
Additions
Reductions
2008
one year
Governmental activities:
Bonds payable:
General obligation bonds $
29,060,000
8,000,000
2,200,000
34,860,000
2,540,000
Bond premium
103,349
-
6,080
97,269
6,080
29,163,349
8,000,000
2,206,080
34,957,269
2,546,080
ADEC loans
77,470
-
5,442
72,028
5,523
Compensated absences
172,412
176,026
172,412
176,026
176,026
Total $
29,413,231
8,176,026
2,383,934
35,205,323
2,727,629
Business -type activities:
Municipal Solid Waste
'
Collection and Disposal:
Landfill closure and
post - closure
costs $
3,222,587
819,143
-
4,041,730
-
Notes payable
1,636,924
131,736
-
1,768,660
-
Total $
4,859,511
950,879
-
5,810,390
-
Hospital Facilities:
Long term interfund
borrowings $
1,372,644
-
62,694
1,309,950
65,225
Total Hospital Facilities $
1,372,644
-
62,694
1,309,950
65,225
Kodiak Fisheries Research
Center:
Long term interfund
borrowings $
5,995,000
-
335,000
5,660,000
360,000
Total $
5,995,000
-
335,000
5,660,000
360,000
Business -type activities:
Landfill closure and post-
closure costs $
3,222,587
819,143
-
4,041,730
-
Long tern interfund
borrowings
7,367,644
-
397,694
6,969,950
425,225
Notes payable
1,636,924
131,736
-
1,768,660
-
Total $
12,227,155
950,879
397,694
12,780,340
425,225
For governmental activities, compensated absences are generally liquidated by the General Fund.
' 55
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
(9) Solid Waste Landfill Closure and Post Closure Care Costs
State and federal laws and regulations require that the Kodiak Island Borough place a final cover on its
landfill when closed and perform certain maintenance for a number of years after closure. In addition to
operating expenses related to current activities of the landfill, an expense provision and related liability are
recognized based on the future closure and post closure care costs that will be incurred based on the date
the landfill no longer accepts waste. The recognition of these landfill closure and post closure care costs is
based on the amount of the landfill used during the year. The estimated liability of landfill closure and post
closure care costs is $4,041,730 as of June 30, 2008, which is based on 72% usage (filled) of the landfill.
The landfill is estimated to be filled and unusable by the year 2014. Of the total liability at June 30, 2008,
an increase of $819,143 was recorded in the current year based on current year usage and changes in
estimates. An estimated additional $1,571,784 will be recognized as closure and post closure care expenses
between the date of the balance sheet and the date the landfill is expected to be filled to capacity. The
estimated total current cost of the landfill closure and post closure care of $5,613,514 is based on the
amount that would be paid if the landfill were closed as of June 30, 2008. However, the actual cost of
closure and post closure 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 post closure 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 post closure 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.
(10) 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, appraisal services and there is also a separate
pool for policy liability. The Kodiak Island Borough Finance Director, the Kodiak Island Borough
Manager, and the Kodiak Island Borough Mayor are all members of the Board of Directors of the JIA.
56
'i
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
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.
• 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.
' (11) 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 Kodiak Island Medical Center who
' assumed responsibility for the hospital's operations as of April 21, 1997. The lease agreement is
effective for a term of twenty years from that date. The lease is cancelable by either party with a one
year notice. The hospital capital assets, the lease income, and all other costs relating to the agreement
are accounted for by the Borough in the Hospital Facilities Enterprise Fund.
1 57
KODIAK ISLAND BOROUGH '
Notes to Basic Financial Statements
June 30, 2008 '
The agreement with Providence specifies that the Borough will contribute at least $108,000 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 $25,000 in cost. The Borough receives
$60,000 per month in rental revenue. In August 2003, the lease was amended that required
Providence to pay an additional lease payment of $1,300,000 in 2004. In October 2005 the lease was
amended to remove the requirement that Providence had to pay 50% of the net revenues of the
hospital, up to $600,000, in rental revenues. Providence now has to spend 50% or more of their net
profit, up to $200,000, on equipment. The lease was also amended to have the $108,000 of
equipment which the Borough was required to purchase become Providence property rather than
Borough property.
(b) Kodiak Fisheries Research Center
The Kodiak Fisheries Research Center (KFRC) leases its premise to the General Services
Administration (GSA), Alaska Department of Fish and Game (ADF &G), the GSA on behalf of
Department of Commerce, National Oceanic and Atmospheric Administration (NOAA), and the
University of Alaska Fairbanks (UAF).
The lease with the GSA is from March 1, 2003, through September 30, 2018, cancelable with
120 days notice. Annual rent varies from $38,933 in 2008 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 $38,400 in 2008 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.
The lease with NOAA is from October 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 2008 to $143,601 in 2018.
,
(12) Retirement Commitments
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. The plans are administered by the Commissioner of
Administration and the Alaska Retirement Management Board (ARMB). 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.
58 1
' KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
' June 30, 2008
During 2005, the Borough adopted Governmental Accounting Standards Board Statement No. 45,
' Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions.
During the 2005 legislative session, a law was enacted that closed the defined benefit retirement plan.
Senate Bill 141, signed into law on July 27, 2005 and effective July 1, 2006 closed the plan to new members
and created a new defined contribution plan for members first hired on or after July 1, 2006. As part of this
legislation, active non - vested members may have the option to convert their defined benefit plan to the new
' PERS Defined Contribution Retirement Plan if their employer decides to participate in the conversion
option.
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, by
calling (907) 465 -4460 or online at http_ / /www. state. ak. us /drb /pers /actuarial- valuation.shtml
At June 30, 2008, the number of participating employers were:
' (a) PERS — Defined Benefit Plan
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, sufficient to accumulate
assets to pay pension and other postemployment benefits (OPEB) when due. The actuarial
determined rate for the Borough was 39.14% for the year ended June 30, 2008. The legislature
capped the rate at 22 %, with the State of Alaska contributing an on- behalf payment for the difference
between the actuarial required contribution and the cap. The contribution requirements of plan
members and the Borough are established and may be amended by the ARMB.
Benefits vest after five years of credited service. Employees enrolled prior to July 1, 1986 with five
or more years of credited service are entitled to annual pension benefits beginning at normal
retirement age 55 or early retirement age 50. For employees enrolled after June 30, 1986, but before
July 1, 2006, 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.
' 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.
' 59
State of Alaska
3
'
Municipalities
77
School Districts
53
Other
Total employers
27
160
' (a) PERS — Defined Benefit Plan
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, sufficient to accumulate
assets to pay pension and other postemployment benefits (OPEB) when due. The actuarial
determined rate for the Borough was 39.14% for the year ended June 30, 2008. The legislature
capped the rate at 22 %, with the State of Alaska contributing an on- behalf payment for the difference
between the actuarial required contribution and the cap. The contribution requirements of plan
members and the Borough are established and may be amended by the ARMB.
Benefits vest after five years of credited service. Employees enrolled prior to July 1, 1986 with five
or more years of credited service are entitled to annual pension benefits beginning at normal
retirement age 55 or early retirement age 50. For employees enrolled after June 30, 1986, but before
July 1, 2006, 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.
' 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.
' 59
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
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 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 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 twenty years. More than 100% of the annual pension cost was
contributed to the plan. 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:
Annual required contribution (ARC)
Interest on net pension obligation (NPO)
Adjustment to the ARC
GASB 43 adjustment
Annual pension cost (APC)
Contributions made
Increase (Decrease) in NPO
NPO, beginning of year
NPO, end of year
Pension
OPEB
Total
370,046
136,866
506,912
27,867
14,785
42,652
(53,586)
(28,430)
(82,016)
(1,757,417)
3,108,701
1,351,284
(1,413,090)
3,231,922
1,818,832
(370,046) (136,866) (506,912)
(1,783,136) 3,095,056 1,311,920
337,779 179,211 516,990
$ (1,445,357) 3,274,267 1,828,910
60
Cl
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
Funded Status and Funding Progress
The funded status of the plan as of June 30, 2006, the latest actuarial report was as follows:
o,.....,,...
Actuarial accrued liability (AAL)
Actuarial value of plan assets
Unfunded actuarial accrued liability (UAAL)
Funded ratio (actuarial value of plan assets /AAL)
Covered payroll (active plan members)
UAAL as a percentage of covered payroll
$ 12,732,609
10,390,807
$ 2,341,802
82%
OPEB
11,640,541
4,447,507
7,193,034
38%
$ 2,230,259 2,230,259
105% 323%
T..�.,1
24,373,150
14,838,314
9,534,836
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. In April 2008 the Alaska Legislature passed Senate Bill 125,
which converts the existing Public Employees Retirement System (PERS) from an agent - multiple
employer plan to a cost - sharing multiple employer plan for the Fiscal year June 30, 2008. Under the
cost - sharing arrangement, the State of Alaska Division of Retirement and Benefits will no longer
track individual employer assets and liabilities; rather, all plan costs and post service liabilities will
be shared among all participating employers.
61
KODIAK ISLAND BOROUGH '
Notes to Basic Financial Statements
June 30, 2008 '
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:
Contribution rates: Pension OPEB
Employee:
Peace officers and firefighters 4.50% 3.00%
,
Other employees 4.05% 2.70%
Employer 10.95% 4.05%
Actuarial assumptions:
Actuarial valuation date June 30, 2006 June 30, 2006
Actuarial cost method Projected unit credit Projected unit credit
Amortization method Percent of pay, Percent of pay,
,
open open
Remaining amortization period 20 years 20 years
Asset valuation method 5 -year 5 -year
'
Inflation rate 3.50% 3.50%
Investment return 8.25% 8.25%
Projected salary increase:
Inflation 3.50% N/A
Productivity and merit:
Peace officers and firefighters 2.50% N/A
'
Others 2.00% N/A
Health cost trend N/A 12.00%
The Boroughs annual pension cost, the percentage of annual pension cost contributed to the plan,
and the net pension obligation for 2008 and the two preceding years were as follows:
'
Year ended APC contributed obligation
6/30/2006 $ 424,032 64% 365,618
6/30/2007 211,278 100% 336,379
6/30/2008 (1,413,090) N/A (1,445,357)
,
62
1
1
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
1
1
1
1
n
June 30, 2008
The Borough's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the net OPEB obligation for 2008 and the two preceding years were as follows:
Changes in Method from Prior Valuation. The actuarial cost method for financial statement
presentation was changed from the Projected Unit Credit to Entry Age Normal effective with the
June 30, 2006 valuation in order to be in compliance with reporting guidelines established in GASB
43.
Change in the PERS plan. Effective July 1, 2008, the PERS plan changed from an agent multiple -
employer plan to a cost sharing multiple employer plan.
(b) PERS — Defined Contribution Plan
Plan Description and Funding Requirements. The plan is established and administered by the State
of Alaska. Cities and Public Employers in the State of Alaska have a defined contribution retirement
plan for new hires first enrolled on or after July 1, 2006. Plan members make mandatory
contributions of 8% of gross eligible compensation. State statutes require the employer to contribute
5% of employees' eligible compensation. Additionally, employers are required to contribute 0.99%
to the retiree medical plan, 0.58% for occupational and death and disability benefits and 3% of
employers average annual employee compensation to the health reimbursement arrangement (HRA).
The employer effective contribution is between 19.57% and 22 %, with difference being allocated the
defined benefit unfunded liability (DBUL). Plan members are 100% vested with their contributions.
Members become vested in employers' contributions as follows:
2 years of service — 25%
3 years of service — 50%
4 years of service — 75%
5 years of service —100%
63
Annual
Percentage of
OPEB
Annual OPEB
Net OPEB
Year ended June 30
Cost
Cost Contribute
Obligation
2006
$ 151,726
64%
193,982
2007
74,188
100%
179,212
2008
3,231,922
0%
3,274,267
Changes in Method from Prior Valuation. The actuarial cost method for financial statement
presentation was changed from the Projected Unit Credit to Entry Age Normal effective with the
June 30, 2006 valuation in order to be in compliance with reporting guidelines established in GASB
43.
Change in the PERS plan. Effective July 1, 2008, the PERS plan changed from an agent multiple -
employer plan to a cost sharing multiple employer plan.
(b) PERS — Defined Contribution Plan
Plan Description and Funding Requirements. The plan is established and administered by the State
of Alaska. Cities and Public Employers in the State of Alaska have a defined contribution retirement
plan for new hires first enrolled on or after July 1, 2006. Plan members make mandatory
contributions of 8% of gross eligible compensation. State statutes require the employer to contribute
5% of employees' eligible compensation. Additionally, employers are required to contribute 0.99%
to the retiree medical plan, 0.58% for occupational and death and disability benefits and 3% of
employers average annual employee compensation to the health reimbursement arrangement (HRA).
The employer effective contribution is between 19.57% and 22 %, with difference being allocated the
defined benefit unfunded liability (DBUL). Plan members are 100% vested with their contributions.
Members become vested in employers' contributions as follows:
2 years of service — 25%
3 years of service — 50%
4 years of service — 75%
5 years of service —100%
63
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2008
Plan provisions and contribution requirements and amendments are established by the Alaska
Retirement Management Board (ARMB). Total contributions for the year ended June 30, 2008 are
as follows:
Defined contribution
Retiree medical plan
Occupational health and disability benefits
Health reimbursement agreement (HRA)
per employee, per pay period
Employer Employ
$ 6,380 10,208
1,263
740
59
Actual contributions were equal to the annual required contributions.
(c) Deferred Compensation Plan
The Kodiak Island Borough has two deferred compensation plans created and amended in
accordance with Internal Revenue Code Section 457. The plans are available to all regular Borough
employees. The deferred compensation is not available to employees until termination, retirement,
death, or unforeseeable emergency.
All amounts deferred under these plans are held in trusts that were established for the exclusive
benefit of plan participants. Amounts contributed to the plans by participants during the year ended
June 30, 2008, was $128,792.
The first plan is managed by the International City Managers Association Retirement Corporation.
$83,928 was contributed to this plan during the year ended June 30, 2008. The Borough believes
that the plan does not meet the criteria for inclusion as a fiduciary fund.
The second plan is managed by the Hartford Insurance Company. $44,864 was contributed to this
plan during the year ended June 30, 2008. The Borough believes that the plan does not meet the
criteria for inclusion as a fiduciary fund.
(13) Prior - Period Reclassification of Net Assets
(a) Proprietary Funds
In the FY2007 CAFR the Hospital Facilities Fund incorrectly allocated fund equities between
invested in capital assets, net of related debt and unrestricted. As a result the FY2007 column in the
Proprietary Funds Balance Sheet was changed by reducing invested in capital assets, net of related
debt by $2,207,061 and unrestricted net assets was increased by the same amount.
This change was also made to the FY2007 column in the Statement of Net Assets. Total net assets
did not change.
64
t KODIAK
ISLAND BOROUGH
Notes to Basic Financial Statements
'
June 30, 2008
(b)
Governmental Activities
In the FY2007 Statement of Net Assets, the net assets of the governmental activities were allocated
incorrectly. The net assets invested in capital assets, net of related debt, was overstated by
t $31,627,997.
This was the amount of the related debt.
As a result in the FY2007 column the net assets invested in capital assets, net of related debt was
decreased by $31,627,997 and the net assets, unrestricted, was increased by the same number. Total
net assets did not change.
(14) Contingencies
'
(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.
'
(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 which resulted in a verdict against
Exxon Corporation in August 1994 in the amount of $5 billion for punitive damages that has since
been reduced to $500 million plus interest by the United States Supreme Court. The interest issue 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.
65
REQUIRED SUPPLEMENTARY INFORMATION
KODIAK ISLAND BOROUGH
Required Supplementary Information
Schedule of Funding Progress for PERS
June 30, 2008
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:
6/30/2004
8,543
12,055
(3,512)
71%
1,953
(180)%
6/30/2005
7,428
11,527
(4,099)
64%
2,132
(192)%
6/30/2006
10,391
12,733
(2,342)
82%
2,230
(105)%
OPEB:
6/30/2004
6,024
8,501
(2,477)
71%
1,953
(127)%
6/30/2005
7,401
11,485
(4,084)
64%
2,132
(192)%
6/30/2006
4,448
11,641
(7,193)
38%
2,230
(323)%
••
1
I
Ll
1
u
1
1
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
Revenues:
Property taxes:
Real
Personal
Boat
Motor vehicle
Penalty and interest
Total property taxes
Intergovernmental:
State sources:
State Revenue Sharing
Tax Payer Relief
Raw fish tax
Fish revitalization
Electric Co -op tax
On behalf PERS payment
Total state sources
Federal sources:
Payments in lieu of taxes
Fish and Wildlife revenue sharing
Total federal sources
Total intergovernmental
revenue
Severance taxes:
Fish
Mining
Logging
Total severance taxes
1 67
Licenses, permits, fees, and other local
revenues:
1
Building and trailer permits
Subdivision and zoning fees
Variance with
Sale of copies
Miscellaneous
'
Total licenses, permits, fees,
and other local revenues
'
Investment income
Total
2007
revenues
1 67
2008
Variance with
Final Budget -
Budget
Positive
2007
Original
Final
Actual
(Negative)
Actual
$ 7,712,540
7,712,540
7,846,642
134,102
7,445,150
1,060,470
1,060,470
1,053,918
(6,552)
990,141
26,450
26,450
25,079
(1,371)
26,217
250,000
250,000
252,811
2,811
225,046
175,000
175,000
178,081
3,081
214,773
9,224,460
9,224,460
9,356,531
132,071
8,901,327
571,286
591,286
591,286
-
1,039,873
-
411,750
411,747
(3)
-
950,000
950,000
1,059,161
109,161
958,965
2,000
2,000
41,811
39,811
66,235
26,000
26,000
27,668
1,668
27,474
-
-
-
-
83,159
1,549,286
1,981,036
2,131,673
150,637
2,175,706
814,000
814,000
805,001
(8,999)
800,081
350,075
350,075
340,067
(10,008)
350,112
1,164,075
1,164,075
1,145,068
(19,007)
1,150,193
2,713,361
3,145,111
3,276,741
131,630
3,325,899
1,197,500
1,197,500
1,409,253
211,753
1,285,298
15,750
15,750
12,567
(3,183)
11,401
57,280
57,280
14,390
(42,890)
19,990
1,270,530
1,270,530
1,436,210
165,680
1,316,689
70,000
70,000
46,097
(23,903)
58,630
6,000
6,000
4,900
(1,100)
4,600
15,000
15,000
8,308
(6,692)
15,490
55,700
55,700
40,951
(14,749)
82,604
146,700
146,700
100,256
(46,444)
161,324
400,000
540,331
544,926
4,595
399,149
13,755,051
14,327,132
14,714,664
387,532
14,104,388
(continued)
1 67
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
Expenditures:
General government:
General and administration
Borough assembly
Borough manager
Borough clerk
Borough attorney
Finance department
Management information systems
Assessing department
Engineering/facilities department
Total general government
Community and economic development:
Community development department
Building official
Economic development
Total community and economic
development
Emergency preparedness
Health and sanitation department
Education, culture, and recreation
Primary and secondary education
Total expenditures
Excess of revenues
over expenditures
Other financing uses:
Transfers out
Net change in fund balance
Fund balance, at beginning of year
Fund balance, at end of the year
f!
1
II
1
2,793,313 2,026,113
$ 3,230,479 2,793,313
See accompanying notes to required supplementary information.
1
t
68 1
2008
Variance with
Final Budget -
Budget
Positive
2007
Original
Final
Actual
(Negative)
Actual
$ 324,170
324,170
212,466
111,704
253,610
180,910
180,910
155,597
25,313
135,986
373,985
373,985
284,585
89,400
194,030
398,510
398,510
372,932
25,578
382,675
130,000
160,000
155,352
4,648
128,087
699,788
699,788
671,824
27,964
678,307
531,420
561,420
467,042
94,378
346,259
436,364
436,364
423,104
13,260
400,617
111,432
111,432
106,920
4,512
112,556
3,186,579
3,246,579
2,849,822
396,757
2,632,127
757,810
775,170
699,567
75,603
488,529
132,765
132,765
118,209
14,556
141,556
75,000
75,000
46,289
28,711
72,816
965,575
982,935
864,065
118,870
702,901
8,800
8,800
5,713
3,087
7,884
300,000
305,100
305,079
21
289,503
180,000
310,731
183,747
126,984
158,161
9,123,412
9,123,412
9,123,412
-
8,387,440
13,764,366
13,977,557
13,331,838
645,719
12,178,016
(9,315)
349,575
1,382,826
1,033,251
1,926,372
(545,660)
(945,660)
(945,660)
-
(1,159,172)
$ (554,975)
(596,085)
437,166
1,033,251
767,200
f!
1
II
1
2,793,313 2,026,113
$ 3,230,479 2,793,313
See accompanying notes to required supplementary information.
1
t
68 1
1
1
1
1
1
1
i
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund — Facilities
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
Revenues:
Investment income
Expenditures:
Contingencies
Excess of revenues over
expenditures
Other financing sources (uses):
Transfers out
Net change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
2008
Variance With
Final Budget —
Budget Positive 2007
Original Final Actual (Negative) Actual
$ 2,000,000 2,000,000 2,046,071 46,071 2,192,964
157,750 185,390 — 185,390 —
1,842,250 1,814,610 2,046,071 231,461 2,192,964
(1,842,250) (1,814,610) (1,814,610) — (1,089,400)
$ — — 231,461 231,461 1,103,564
39,638,397 38,534,833
$ 39,869,858 39,638,397
See accompanying notes to required supplementary information.
69
' KODIAK ISLAND BOROUGH
Notes to Required Supplementary Information — Budgetary Comparison Schedules
June 30, 2008
r
The Borough follows these procedures in establishing the budgetary data reflected in the fund 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
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
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.
• 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,
r which is generally greater than one year.
• 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 published a separate 2008 budget document. That document may be obtained from the
Kodiak Island Borough, Director of Finance, 710 Mill Bay Road, Kodiak, Alaska 99615.
1 70
ADDITIONAL SUPPLEMENTARY INFOILMATION
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Debt Service Fund - Education and Health
Year ended June 30, 2008
(With summarized financial information for the year ended June 30, 2007)
Revenues:
Intergovernmental:
State sources
Investment income
Premium on bonds
Total revenues
Expenditures:
General government
Debt service:
Prinicpal
Interest
Total expenditures
Deficiency of revenues over
expenditures
Other financing sources (uses):
Transfers in
Net change in fund balance
Fund balance (deficit), at beginning of year
Fund balance (deficit), at end of year
71
2008
Variance with
Original
Final Budget –
and Final
Positive
2007
Budget
Actual
(Negative)
Actual
$ 1,789,310
1,801,750
12,440
1,780,055
20,000
30,330
10,330
25,750
—
44,652
44,652
—
1,809,310
1,876,732
67,422
1,805,805
10,000
26,920
(16,920)
2,650
2,205,450
2,205,441
9
2,100,361
1,255,320
1,255,313
7
1,326,806
3,470,770
3,487,674
(16,904)
3,429,817
(1,661,460)
(1,610,942)
(50,518)
(1,624,012)
1,661,460
1,661,460
—
1,645,143
$ —
50,518
(50,518)
21,131
(60,380)
(81,511)
$ (9,862)
(60,380)
71
1
I 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 Area No. I 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 Child Care Assistance Program Fund accounts for a State of Alaska grant to finance day care for children
of low- income employed families.
' The Local Emergency Planning Committee (L.E.P.C.) 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 Buildings and Grounds Fund accounts for the operations and maintenance of certain buildings and
grounds owned by the Borough which are jointly shared with the City of Kodiak, the Kodiak Island Borough
' School District, 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 Trinity Islands 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.
1 (continued)
1
1
NONMAJOR SPECIAL REVENUE FUNDS I
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 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.
The Trinity Islands Paving Fund accounts for activities related to the provision of paving within the service
area.
1�
II
t
77
I
1
1
1
1
r J
1
1
1
KODIAK ISLAND BOROUGH
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2008
(With summarized financial information at June 30, 2007)
Assets
Equity in central treasury
Receivables:
State of Alaska
Federal Government
Property taxes
Land sales contracts, due within one year
Notes receivable
Other
Land sale contracts, due after one year
Total
Liabilities and Fund Balances
Liabilities:
Accounts payable
Retainages payable
Customer deposits
Due to other funds
Unearned revenues
Total liabilities
Fund Balances:
Unreserved:
Designated for subsequent
year expenditures
Undesignated
Total fund balances
Total
Special
Debt
Capital
Totals
Revenue
Service
Project-
2008
2007
$ 3,646,784
169,650
7,927
3,824,361
4,389,288
15,228
-
237,017
252,245
211,379
-
-
169,414
169,414
11,093
11,770
-
-
1 1,770
15,008
54,137
-
-
54,137
38,308
-
-
448,533
38,672
-
-
38,672
25,585
176,641
-
-
176,641
193,155
$ 3,943,232
169,650
414,358
4,527,240
5,332,349
$ 102,917
-
213,471
316,388
236,355
-
17,978
17,978
11,904
800
-
-
800
828
224,349
-
90,000
314,349
362,215
228,175
-
-
228,175
260,087
556,241
-
321,449
877,690
871,389
150,845
-
-
150,845
171,800
3,236,146
169,650
92,909
3,498,705
4,289,160
3,386,991
169,650
92,909
3,649,550
4,460,960
$ 3,943,232
169,650
414,358
4,527,240
5,332,349
72
I KODIAK ISLAND BOROUGH
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
'
Nonmajor Governmental Funds
Year ended June 30, 2008
'
(With summarized financial information for year ended June 30, 2007)
Special Debt
Capital
Totals
Revenue Service
Projects
2008
2007
'
Revenues:
Property taxes and assessments
$ 897,946 -
-
897,946
849,355
Intergovernmental:
State sources
18,273 -
408,741
427,014
56,886
'
Federal sources
91,223
1,113,593
1,204,816
267,210
Land sale proceeds
19,458 -
-
19,458
47,087
Licenses, permits, fees,
and other local revenues
558,125
-
558,125
612,242
Investment income
226,054 8,180
535
234,769
233,384
Other
106,798 -
200,000
306,798
551,321
Total revenues
1,917,877 8,180
1,722,869
3,648,926
2,617,485
'
Expenditures:
General government
793,490 -
148,312
941,802
1,869,275
Public safety
385,529 -
-
385,529
Community and economic development
59,138
-
59,138
83,713
'
Health and sanitation department
81,974
81,974
83,629
Service district maintenance
374,320
374,320
498,539
Capital improvements:
Schools
- -
1,008,346
1,008,346
183,121
General
- -
677,865
677,865
373,038
'
Debt service
7,863
7,863
9,543
Total expenditures
1,702,314 -
1,834,523
3,536,837
3,100,858
Excess (deficiency) of revenues
over expenditures
215,563 8,180
(111,654)
112,089
(483,373)
Other financing sources (uses):
'
Transfers in
Transfers out
205,150 _
(79,290)
=
205,150
(79,290)
981,710
(215,638)
Net other financing sources
125,860 -
125,860
766,072
Net change in fund balances
341,423 8,_180
(111,654)
237,949
282,699
Fund balances, at beginning of year
3,045,568 161,470
204,563
3,411,601
4,178,261
Fund balances, at end of year
$ 3,386,991 169,650
92,909
3,649,550
4,460,960
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30, 2008
(With summarized financial information at June 30, 2007)
74
Fire and Road Service Areas
Fire
Road -
Fire -
Women
ak
Monas ka
Protection
Bay Fire
Airport Fire
Bay Road
Service
Assets
Area No.1
Department
District
Service Area
Area No.1
Equity in central treasury
$ 674,276
234,915
31,516
24,126
290,748
Receivables:
State of Alaska
—
—
—
—_
_
Federal Government
—
4,507
—
1,766
—
10
588
2,493
Property taxes
Land sales contracts, due within one year
—
—
—
—
—
Notes receivable
—
—
—
—
Other
—
—
—
—
—
Land sale contracts, due after one year
—
—
—
—
-
Total assets
$ 678,783
236,681
31 526
24,714
293,241
Liabilities and Fund Balances (Deficits)
Liabilities:
Accounts payable
19,729
263
—
6,421
22,444
Customer deposits
—
650
—
—
—
Due to other funds
—
—
—
—
—
Unearned revenues
—
—
—
—
Total liabilities
19,729
913
—
6,421
22,444
Fund balances (deficits):
Unreserved (deficits):
Designated for subsequent year expenditures
89,075
—
—
—
—
Undesignated
569,979
235,768
31,526
18,293
270,797
Total fund balances (deficits)
659,054
235,768
31,526
18,293
270,797
Total liabilities and fund balances (deficits)
$ 678;783
236,681
31 526
24
293 241
74
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Fire and Road Service Areas
Road
Federal and State Grant Pro aros
Chi are
Wonmw Bay
Bay View Road
Service Area
Coastal
Assistance
Service =Area
Service Area
No. 2
Management
Program
L.E.P.C.
Land Sales
160,468
7,703
5,262
31,484
15,427
1,850
1,124,850
-
-
-
2,285
4,101
8,842
-
2,406
-
-
-
-
-
-
-
_
_
_
_
=
54,137
-
-
-
-
-
-
13,348
-
-
-
-
-
176,641
162 874
7,703
5 262
33,769
19,528
10,692
1 368,976
1,234
775
-
-
333
5,315
-
-
10,000
-
-
19,926
20,000
-
-
-
-
-
-
228,175
1,234
10,775
-
20,259
25,315
228,175
161,640
(3,072)
5,262
33,769
(731)
(14,623)
1,140,801
161,640
(3,072)
5,262
33,769
(731)
(14,623)
1,140,801
162,874
7,703
5 262
33,769
19,528
10,692
1,368,976
(Continued)
75
KODIAK ISLAND BOROUGB
NonmajorSpecial Revenue Funds
Combining Balance Sheet, (continued)
June 30, 2008
76
Street Lighting Districts
Woodland
Buildings
Acres Street
Trinity Islands
and
Ligbt Service
Street Light
Kodiak Arts
Tourism
Assets
Grounds
Area
Service Area
Council
Development
Equity in central treasury
$ 300,231
4,270
2,555
9,959
28,982
Receivables:
State of Alaska
—
—
—
—
—
Federal Government
—
—
—
—
—
Property taxes
—
—
—
—
—
Land sales contracts, due within one year
—
-
—
—
—
Notes receivable
—
—
—
—
—
Other
—
—
—
8,143
17,181
Land sale contracts, due after one year
—
—
—
—
—
Total
S 300231
4270
2,555
18,102
46,163
Liabilities and Fund Balances (Deficits)
Liabilities:
Accounts payable
45,706
465
162
70
—
Customer deposits
—
—
—
—
150
Due to other funds
—
—
—
20,000
—
Unearned revenues
—
—
—
—
—
Total liabilities
45,706
465
162
20,070
150
Fund balances (deficits):
Unreserved (deficits):
Designated for subsequent year expenditures
—
—
—
—
—
Undesignated
254,525
3,805
2,393
(1,968)
46,013
Total fund balances (deficits)
254,525
3,805
2,393
(1,968)
46,013
Total
$ 300 231
4,270
2,555
18,]02
46,163
76
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Mission Lake
Fern Fuller
Trinity Islands -
Totals
Tide Gate
Trost
Paving
2007
10,612
643,288
44,262
3,646,784
2,978,491
-
-
-
15,228
12,650
-
-
-
-
11,093
-
-
-
11,770
15,008
-
-
-
54,137
38,308
-
-
-
-
448,533
-
-
-
38,672
25,585
-
-
176,641
193,155
10,612
643 288
44 262
3,943 232
3,722,823
-
-
-
102,917
224,945
-
-
800
828
-
-
154,423
224,349
238,302
-
-
228,175
213,180
-
-
154,423
556,241
677,255
-
61,770
-
150,845
171,800
10,612
581,518
(110,161)
3,236,146
2,873,768
10,612
643,288
(110,161)
3,386,991
3,045,568
10,612
643 288
44 262
3,943,232
3,722,823
77
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficits)
Year ended June 30, 2008
(With summarized financial information for the year ended June 30, 2007)
78
Fire and Road Service Areas
Fire
Road
Fire
Womens
Kodiak
Monashka
Protection
Bay Fire
Airport Fire
Bay Road
Area No. I
Department
District
Service Area
Revenues:
Property taxes and assessments
$ 394,384
67,988
12,794
43,086
Intergovernmental:
State sources
-
-
-
-
Federal sources
-
-
-
-
Land sale proceeds
-
-
-
-
Licenses, permits, fees,
and other local revenues
-
10,212
-
-
Investment income
51,636
17,285
2,332
3,923
Other
4,345
-
-
-
Total revenues
450,365
95,485
15,126
47,009
Expenditures:
General government
-
-
-
-
Public safety
317,685
50,020
24
-
Community and economic development
-
-
-
-
Health and sanitation department
-
-
-
-
Service district maintenance
-
-
-
67,153
Debt service
-
-
-
Total expenditures
317,685
50,020
24
67,153
Excess (deficiency) of revenues
over expenditures
132,680
45,465
15,102
(20,144)
Other financing sources (uses):
Transfers in
-
12,790
-
-
Transfers out
-
-
(12,790)
Net other financing sources (uses)
-
12,790
(12,790)
-
Net change in fimd balances
132,680
58,255
2,312
(20,144)
Fund balances (deficits), at beginning of year
526,374
177,513
29,214
38,437
Fund balances (deficits), at end of year
$ 659,054
235,768
31,526
18,293
78
1
1
1 79
Fire and Road Service Areas
Road
Federal and State Grant Programs
Child Care
Service
Womens Bay
Bay View Road
Service
Coastal
Assistance
Area No.1
Service Area
Service Area
Area No. 2
Management
Program
L.E.P.C.
Land Sales
225,707
104,365
6,621
=
_
_
-
18,273
_
-
-
-
-
9,197
82,026
-
-
-
-
-
-
-
19,458
-
24,000
-
-
-
_
24,834
24,540
16,710
213
362
477
53,426
-
-
-
-
-
-
-
80
'
250,247
145,075
6,834
362
9,197
82,503
18,273
97,798
-
-
-
-
-
-
-
19,891
-
-
-
-
-
-
17,800
-
9,130
_
=
=
81,974
_
_
166,672
130,379
8,773
-
166,672
130,379
8,773
-
9,130
81,974
17,800
19,891
83,575
14,696
(1,939)
362
67
529
473
77,907
r
83,575
14,696
(1,939)
362
67
529
473
77,907
187,222
146,944
(1,133)
4,900
33,702
(1,260)
(15,096)
1,062,894
270,797
161,640
(3,072)
33,7b9
(731)
(14,623)
1�140,801�
(continued)
1
1 79
r
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficits), (continued)
Year ended June 30, 2008
(With summarized financial information for the year ended June 30, 2007)
Street Li¢htine Districts.
Woodland Acres Trinity Islands
Revenues:
Property taxes and assessments
Intergovernmental:
State sources
Federal sources
Land sale proceeds
Licenses, permits, fees,
and other local revenues
Investment income
Other
Total revenues
Expenditures:
General government
Public safety
Community and economic development
Health and sanitation department
Service district maintenance
Debt service
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Net other financing sources (uses)
Net change in fiord balances
Fund balances (deficits), at beginning of year
Fund balances (deficits), at end of year
Buildings and
Street Light
Street Light
Kodiak Arts
Grounds
Service Area
Service Area
Council
$ —
—
3,871
—
436,284
—
—
62,795
18,137
547
128
454,421
547
3,999
62,795
691,486
5,600
1,957
68,347
5,600
691,486
1,957
68,347
(237,065)
(5,053)
2,042
(5,552)
192,360
—
—
—
192,360
—
—
—
(44,705)
(5,053)
2,042
(5,552)
299,230
8,858
351
3,584
$ 254,525
3,805
2,393
�(
80
f
r
f
r
1
i �
J
1
i
1
1
1
1
1
1j, I
Tourism
Mission Lake
Fern Fuller
Trinity Islands
Totals
Development
Tide Gate
Trust
Paving
2008
2007
(66,500)
-
125,860 _
118,900
30,466 2,647 (17,246)
-
3,473
-
35,657
897,946
849,355
-
-
-
-
18,273
28,482
-
-
-
-
91,223
127,043
-
-
-
-
19,458
47,087
558,125
612,242
1,292
517
32,27257
2
2,
226,054
188,853
79,182
-
23,191
-
106,798
534,970
80,474
3,990
55,463
37,914
1,917,877
2,388,032
-
-
6,209
-
793,490
1,869,275
-
-
-
-
385,529
-
50,008
-
-
-
59,138
83,713
-
81,974
83,629
-
1,343
-
-
374,320
498,539
-
-
-
7,863
7,863
9,543
50,008
1,343
6,209
7,863
1,702,314
2,544,699
30,466
2,647
49,254
30,051
215,563
(156,667)
ri
1 81
205,150
198,188
_
(66,500)
(79,290)
(79,288)
(66,500)
-
125,860 _
118,900
30,466 2,647 (17,246)
30,051
341,423
(37,767)
15,547 7,965 660,534
(140,212)
3,045,568
3,083,335
46,013 10,612 643,288
(110,161)
326,991
3,045,568
ri
1 81
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 Balance
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
Revenues:
Property taxes
Intergovernmental:
State sources
Investment income
Miscellaneous
Total revenues
Expenditures:
Public safety:
Personnel
Volunteers
Fringe benefits
Professional services
Support goods and services
Capital outlay
Depreciation
Total expenditures
Excess (deficiency) of revenues over
expenditures
Fund balance, at beginning of year
Fund balance, at end of year
82
2008
Variance with
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
$ 376,000
394,384
18,384
362,301
-
-
-
4,344
-
51,636
51,636
60,483
5,500
4,345
(1,155)
3,710
381,500
450,365
68,865
430,838
72,150
77,651
(5,501)
77,469
24,000
19,860
4,140
21,420
36,540
36,440
100
35,200
13,000
1,267
11,733
900
161,170
135,996
25,174
117,353
69,640
46,471
23,169
725,910
50,000
-
50,000
-
426,500
317,685
108,815
978,252
$ (45,000)
132,680
177,680
(547,414)
526,374
1,073,788
$
659,054
526,374
82
Final
Budget Actual
Variance with
Final Budget
Positive 2007
(Negative) Actual
65,598
KODIAK
2,390
ISLAND BOROUGH
-
Nonmajor Special Revenue Funds
1
Fire and Road Service Areas - Womens Bay Fire Department
10,212
Schedule of Revenues, Expenditures,
-
and Changes in Fund Balance
500
Budget and Actual
16,785
Year ended June 30, 2008
76,310
(With financial information for the year ended June 30, 2007)
19,175
2008
Final
Budget Actual
Variance with
Final Budget
Positive 2007
(Negative) Actual
65,598
Revenues:
2,390
Property taxes
-
Intergovernmental:
-
Federal sources
10,212
Licenses, permits, fees, and
-
other local revenues
500
Investment income
16,785
Total revenues
76,310
Expenditures:
19,175
Public safety:
Personnel services
'
Fringe benefits
919
Support goods and services
434
Capital outlay
341
Debt service - interest
47,402
Total expenditures
31,614
Excess (deficiency) of revenues over
-
expenditures
52,264
Other financing sources:
273
Transfers in:
971
Kodiak Airport Fire
50,020
District Special Revenue Fund
86,109
Net change in fund balance
(16,700)
Fund balance, at beginning of year
62,165
Fund balance, at end of year
Final
Budget Actual
Variance with
Final Budget
Positive 2007
(Negative) Actual
65,598
67,988
2,390
65,598
-
-
-
24,931
10,212
10,212
-
9,252
500
17,285
16,785
10,862
76,310
95,485
19,175
110,643
3,000
1,911
1,089
919
434
(434)
341
52,210
47,402
4,808
31,614
27,800
-
27,800
52,264
10,000
273
9,727
971
93,010
50,020
42,990
86,109
(16,700)
45,465
62,165
24,534
16,700 12,790 (3,910) 12,788
$ - 58,255 58,255 37,322
177,513 140,191
$ 235,768 177,513
1
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas — Kodiak Airport Fire District
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
2008
Revenues:
Property taxes
Investment income
Total revenues
Expenditures:
Public safety:
Support goods and services
Excess of revenues over expenditures
Other financing uses:
Transfers out:
Womens Bay Fire Department Special
Revenue Fund
Net change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
1,440 24 1,416
12,790 15,102 2,312
(12,790) (12,790) —
$ — 2,312 2,312
29,214
$ 31,526
31
14,850
(12,788)
2,062
27,152
29,214
84
Variance with
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
$ 12,830
12,794
(36)
12,788
1,400
2,332
932
2,093
14,230
15,126
896
14,881
1,440 24 1,416
12,790 15,102 2,312
(12,790) (12,790) —
$ — 2,312 2,312
29,214
$ 31,526
31
14,850
(12,788)
2,062
27,152
29,214
84
I
1
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
'
Fire and Road Service Areas — Monashka Bay Road Service Area
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
1
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
2008
Variance with
Final Budget
Final
Positive
2007
Budget Actual
(Negative)
Actual
Revenues:
Property taxes
$ 40,500 43,086
2,586
39,807
Investment income
2,675 3,923
1,248
3,905
Total revenues
43,175 47,009
3,834
43,712
Expenditures:
Service district maintenance:
Personnel services
825 519
306
1,399
Support goods and services
350 80
270
190
Snow removal/sanding
15,000 23,007
(8,007)
18,524
Road grading/ditching
7,000 1,240
5,760
3,753
Repairs and maintenance
20,000 42,307
(22,307)
38,245
Total expenditures
43,175 67,153
(23,978)
62,111
Excess (deficiency) of revenues
over expenditures
$ (20,144)
(20,144)
(18,399)
Fund balance, at beginning of year
38,437
56,836
Fund balance, at end of year
$ 18,293
38,437
I
t
1 85
u
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas - Service Area No. l
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
86
P ,
d
L7
t_
1
I
1
2008
Variance with
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes
$ 220,000
225,707
5,707
213,004
Intergovernmental:
State sources
-
-
-
165
Investment income
-
24,540
24,540
24,676
Total revenues
220,000
250,247
30,247
237,845
Expenditures:
Service district maintenance:
Personnel services
8,650
7,776
874
8,036
Support goods and services
1,100
479
621
2,084
Snow removal/sanding
100,000
94,993
5,007
91,316
Road grading/ditching
50,000
20,078
29,922
38,799
Repairs and maintenance
60,250
43,346
16,904
151,115
Total expenditures
220,000
166,672
53,328
291,350
Excess (deficiency) of revenues
over expenditures
$ -
83,575
83,575
(53,505)
Fund balance, at beginning of year
187,222
240,727
Fund balance, at end of year
$
270,797
187,222
86
P ,
d
L7
t_
1
I
1
1
1
87
1
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
'
Fire and Road Service Areas - Womens Bay Road Service Area
Schedule
of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
'
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
2008
1
Variance with
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes
$ 101,057
104,365
3,308
101,057
Licenses, permits, fees, and
other local revenues
20,000
24,000
4,000
20,015
'
Investment income
4,475
16,710
12,235
13,127
Total revenues
125,532
145,075
19,543
134,199
Expenditures:
Service district maintenance:
Personnel services
850
1,140
(290)
1,112
Support goods and services
20,500
280
20,220
4,954
Snow removal/sanding
33,400
82,018
(48,618)
79,152
Road grading/ditching
38,782
15,622
23,160
13,689
Repairs and maintenance
32,000
31,319
681
57,624
Total expenditures 125,532
Excess (deficiency) of revenues over
130,379
(4,847)
156,531
expenditures
$
14,696
14,696
(22,332)
Fund balance, at beginning of year
$
146,944
161,640
169,276
146,944
Fund balance, at end of year
1
87
1
1
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 Deficit
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
Revenues:
Property taxes
Investment income
Total revenues
Expenditures:
Service district maintenance:
Personnel services
Support goods and services
Snow removal/sanding
Road grading/ditching
Repairs and maintenance
Total expenditures
Excess (deficiency) of revenues over expenditures
Fund deficit, at beginning of year
Fund deficit, at end of year
88
11 L�
I
1
I
L
1
2008
Variance with
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
$ 5,500
6,621
1,121
5,491
200
213
13
413
5,700
6,834
1,134
5,904
563
(563)
100
9
91
48
3,000
6,349
(3,349)
2,754
1,100
1,212
(112)
1,225
1,500
640
860
2,343
5,700
8,773
(3,073)
6,370
$ —
(1,939)
(1,939)
(466)
(1,133)
(667)
88
11 L�
I
1
I
L
1
1
1
i
1
i
i
1
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas — Service Area No. 2
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
89
2008
Variance with
Final Budget
Final
Positive
2007
Budget Actual
(Negative)
Actual
Revenues:
Investment income
$ — 362
362
569
Expenditures
— —
—
—
Excess of revenues over
expenditures
$ — 362
362
569
Fund balance, at beginning of year
4,900
4,331
Fund balance, at end of year
$ 5,262
4,900
89
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Coastal Management
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
2008
Revenues:
Intergovernmental:
Federal sources — grants
Total revenues
Expenditures:
Community and economic development:
Planning and zoning
Excess (deficiency) of revenues over
expenditures
Fund balance, at beginning of year
Fund balance, at end of year
Variance with
FinalBudget
Final Positive
Budget Actual (Negative)
2007
$ 27,800 9,197 (18,603) 25,112
27,800 9,197 (18,603) 25,112
27,800 9,130 18,670 25,488
$ — 67 67 (376)
33,702 34,078
$ 33,769 33,702
90
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Child Care Assistance Program
Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit)
Budget=and Actual
Year. ended June 30, 2008
(With financial information for the year ended June 30, 2007)
2008
Revenues:
Intergovernmental:
Federal sources — grants
Investment income
Total revenues
Expenditures:
Health and sanitation department:
Personnel
Support goods and services
Total expenditures
Excess (deficiency) of revenues over
expenditures
Fund balance (deficit), at beginning of year
Fund balance (deficit), at end of year
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
2007
$ 82,086
82,026
(60)
77,000
—
477
477
107
82,086
82,503
417
77,107
65,040
66,015
(975)
71,255
17,046
15,959
1,087
12,374
82,086
81,974
112
83,629
$ —
529
529
(6,522)
(1,260)
5,262
$ (731)
(1,260)
91
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
L.E.P.C.
Schedule of Revenues, Expenditures, and Changes in Fund Deficit
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
Revenues
Intergovernmental:
State sources — grants
Expenditures:
Public safety:
Personnel services
Professional services
Support goods and services
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund deficit, at beginning of year
Fund deficit, at end of year
92
2008
Variance with
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
$ 17,800
18,273
473
17,800
11,000
15,290
(4,290)
8,006
3,300
—
3,300
5,089
3,500
2,510
990
4,806
17,800
17,800
—
17,901
$ —
473
473
(101)
(15,096)
(14,995)
$ (14,623)
(15,096)
92
u
j KODIAK
ISLAND BOROUGH
Nonmajor Special Revenue Funds
1
Land Sales
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
2008
Variance with
Final Budget
Final
Positive
2007
Budget Actual
(Negative)
Actual
Revenues:
Land sale proceeds
$ 36,700 19,458
(17,242)
47,087
Licenses, permits, fees, and other
local revenues
1,000 1,000
-
1,000
'
Gravel sales
40,000 23,834
(16,166)
16,159
Investment income
19,000 53,426
34,426
45,771
Other
- 80
80
80
'
Total revenues
96,700 97,798
1,098
110,097
Expenditures:
General government:
Personnel services
26,494 11,500
14,994
11,500
Contracted services
4,550 4,233
317
1,001
Support goods and services
65,656 4,158
61,498
16,215
Total expenditures
96,700 19,891
76,809
28,716
Excess of revenues
over expenditures
$ - 77,907
77,907
81,381
Fund balance, at beginning of year
1,062,894
981,513
Fund balance, at end of year
$ 1,140,801
1,062,894
93
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Buildings and Grounds
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
2008
Revenues:
Intergovernmental:
State sources
Rental income
Investment income
Other
Total revenues
Expenditures:
General government:
School buildings
Borough building
Mental health center
Parks operation and maintenance
Total expenditures
Deficiency of revenues under expenditures
Other financing sources:
Transfers in:
Facilities Special Revenue Fund
Net change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
2007
$ -
-
-
3,444
429,810
436,284
6,474
425,717
20,000
18,137
(1,863)
19,289
449,810
454,421
4,611
448,450
319,554
331,778
(12,224)
342,575
406,416
346,122
60,294
302,512
11,000
3,326
7,674
2,500
26,600
10,260
16,340
10,706
763,570
691,486
72,084
658,293
(313,760)
(237,065)
76,695
(209,843)
192,360
192,360
-
185,400
$ (12I,400)
(44,705)
76,695
(24,443)
299,230
323,673
$
254,525
299,230
94
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Woodland Acres Street Light Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
95
2008
Variance with
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
Revenues:
Investment income
$ 600
547
(53)
748
Expenditures:
General government -
support goods and services
6,000
5,600
400
5,561
Deficiency of revenues under
expenditures
$ (5,400)
(5,053)
347
(4,813)
Fund balance, at beginning of year
8,858
13,671
Fund balance, at end of year
$
3,805
8,858
95
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Trinity Islands Street Light Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit)
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
96
2008
Variance with
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes
$ 3,800
3,871
71
3,825
Income from investments
—
128
128
21
Total revenues
3,800
3,999
199
3,846
Expenditures:
General government:
Personnel services
655
—
655
—
Support goods and services
3,145
1,957
1,188
1,928
Total expenditures
3,800
1,957
1,843
1,928
Excess of revenues over
expenditures
$ —
2,042
2,042
1,918
Fund balance (deficit), at beginning of year
351
(1,567)
Fund balance, at end of year
$
2,393
351
96
i
i
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Kodiak Arts Council
Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit)
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
Revenues:
Intergovernmental:
State sources
Licenses, permits, fees, and other
local revenues:
Reimbursement from Kodiak
Arts Council
Total revenues
Expenditures:
General government:
Personnel services
Fringe benefits
Support goods and services
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance (deficit), at beginning of year
Fund balance (deficit), at end of year
2008
Variance with
Final Budget
Final Positive 2007
Budget Actual (Negative) Actual
2,729
69,460
62,795
(6,665)
71,232
69,460
62,795
(6,665)
73,961
47,160
46,911
249
45,412
22,300
20,972
1,328
21,016
464
(464)
431
69,460
68,347
1,113
66,859
$ —
(5,552)
(5,552)
7,102
3,584
(3,518)
$ (1,968)
3,584
97
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Tourism Development
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
98
2008
Variance with
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
Revenues:
Transient accommodations tax
$ 50,000
79,I82
29,182
68,867
Investment income
—
1,292
1,292
812
Total revenues
50,000
80,474
30,474
69,679
Expenditures:
Community and economic development:
Contributions
50,000
50,000
—
45,000
Support goods and services
—
8
(8)
13,225
Total expenditures
50,000
50,008
(8)
58,225
Excess of revenues
over expenditures
$ —
30,466
30,482
11,454
Fund balance, at beginning of year
15,547
4,093
Fund balance, at end of year
$
46,013
15,547
98
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Mission Lake Tide Gate
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
99
2008
Variance with
Final Budget
Final
Positive
2007
Budget
Actual ,
(Negative)
Actual
Revenues:
Property taxes
$ 3,000
3,473
473
3,115
Investment income
50
517
467
175
Total revenues
3,050
3,990
940
3,290
Expenditures:
Service district maintenance:
Personnel services
1,000
872
128
374
Professional services
1,000
370
630
—
Support goods and services
50
101
(51)
131
Capital outlay
1,000
—
1,000
—
Total expenditures
3,050
1,343
1,707
505
Excess of revenues
over expenditures
$ —
2,647
2,647
2,785
Fund balance, at beginning of year
7,965
5,180
Fund balance, at end of year
$
10,612
7,965
99
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fern Fuller Trust
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
Revenues:
Investment income
Fuller Trust proceeds
Total revenues
Expenditures:
General government:
Distributions to beneficiaries
Support goods and services
Total expenditures
Excess of revenues
over expenditures
Other financing uses:
Transfers out:
Hospital Facilities Enterprise Fund
Net change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
100
2008
Variance with
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
$ —
32,272
32,272
5,099
75,000
23,191
(51,809)
531,180
75,000
55,463
(19,537)
536,279
8,500
5,500
3,000
8,000
—
709
(709)
113
8,500
6,209
2,291
8,113
66,500
49,254
(17,246)
528,166
(66,500)
(66,500)
—
(66,500)
$ —
(17,246)
(17,246)
461,666
660,534
198,868
$
643,288
660,534
100
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Trinity Islands Paving
Schedule of Revenues, Expenditures, and Changes in Fund Deficit
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
101
2008
Variance with
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
Revenues:
Special assessments
$ 39,880
35,657
(4,223)
42,369
Investment income
—
2,257
2,257
703
Total revenues
39,880
37,914
(1,966)
43,072
Expenditures:
Debt service:
Support goods and services
32,100
85
32,015
155
Interest
7,780
7,778
2
8,572
Total expenditures
39,880
7,863
32,017
8,727
Excess of revenues over
expenditures
—
30,051
3%051
34,345
Fund deficit, at beginning of year
(140,212)
(174,557)
Fund deficit, at end of year
$ (110,161)
(140212)
101
I
1
1
L
DEBT SERVICE FUNDS
I
u
I I
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.
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
i
KODIAK ISLAND BOROUGH
Debt Service Fund
Other
Balance Sheets
June 30, 2008
(With financial information at June 30, 2007)
2008 2007
Assets
Equity in central treasury $ 169,650 161,470
Liabilities and Fund Balances
Total liabilities
Fund balance:
Unreserved
102
$ 169,650 161,470
KODIAK ISLAND BOROUGH
Debt Service Fund
Other
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2008
(With financial information at June 30, 2007)
Revenues:
Investment income
Expenditures
Excess of revenues over expenditures
Fund balances, at beginning of year
Fund balances, at end of year
2008
Variance with
Final Budget
Final
Positive
2007
Budget Actual
(Negative)
Actual
$ — 8,180
8,180
3,061
$ — 8,180
8,180
3,061
161,470
158,409
$ 169,650
161,470
103
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 improN
projects relating to grants received from the State of Alaska.
t
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Fund
State Capital Grants
Balance Sheet
June 30, 2008
(With financial information at June 30, 2007)
Assets
Equity in central treasury
Receivables:
State of Alaska
Federal government
Total
Liabilities and Fund Balance
Liabilities:
Accounts payable
Retainages payable
Due to other funds
Unearned revenues
Total liabilities
Fund balance:
Unreserved -
Undesignated
Total
2008 2007
237,017
169,414
$ 414,358
213,471
17,978
90,000
321,449
92,909
$ 414,358
1 gu,uuu
198,279
388,279
1,442
11,904
123,913
46,907
184,166
204,563
388,729
104
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Fund
State Capital Grants
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
Revenues:
Intergovernmental:
Federal sources
State sources
Investment income
Other
2008
2007
Total revenues
Expenditures:
General government:
General and administration
Capital improvements:
Schools
General
Total expenditures
Deficiency of revenues under
expenditures
Other financing sources:
Transfers in
Net change in fund balance
$ 1,113,593
28,404
408,741
72,995
535
—
200,000
16,351
1,722,869
117,750
148,312 —
1,008,346 16,222
677,865 228,845
1,834,523 245,067
(111,654) (127,317)
326,350
(111,654) 199,033
Fund balance, at beginning of year 204,563 5,530
Fund balance, at end of year $ 92,909 204,563
105
M M M M M M M r i M M M M M M M M M r
(continued)
106
KODIAK ISLAND BOROUGH
Capital Project Funds
Supplemental Schedule of Capital Projects
Year
ended June 30, 2008
Project
A ro nations
Total
Expenditures
Total
Unexpended
Current
Unencumbered
No.
Project
Status
nor
0
appropriations
Prior
2008
expenditures
balance
encumbrances
balance
Capital projects - Education:
130
410 -655
East Elementary Doorway
Cancelled $
4,200
(4,200)
-
-
-
-
-
03105
410 -492
Northstar Road/park design
Open
50,000
-
50,000
28,967
222
29,189
20,811
-
20,811
03106
410 -493
KHS Emergency Generator
Open
50,000
-
50,000
-
-
-
50,000
-
50,000
03116
430 -509
School Upgrade
Complete
125,804
-
125,804
140,221
-
140,221
(14,417)
-
(14,417)
03118
430 -512
ChiniakMulti -Use
Complete
20,000
-
20,000
11,118
8,882
20,000
-
-
-
03119
420 -500
HS Swimming Pool
Open
6,210,000
8,385,000
14,595,000
886,892
2,091,084
2,977,976
11,617,024
10,244,174
1,372,850
04101
420 -515
Old Harbor Gym Renovation
Open
2,251,315
(181)
2,251,134
2,808
305
3,113
2,248,021
17,123
2,230,898
04102
420 -516
Larsen Bay School Repair
Open
339,883
339,883
1,526
46
1,572
338,311
2,585
335,726
04103
420 -517
Ouzinkie Gym Renovation
Open
1,858,255
64,932
1,923,187
4,399
115,483
119,882
1,803,305
-
1,803,305
05002
420 -519
Earthquake Evaluation Project
Open
500,000
-
500,000
319,523
6,860
326,383
173,617
-
173,617
05006
430 -545
HS Pool Filter
Open
60,000
-
60,000
49,698
-
49,698
10,302
-
10,302
05009
420 -515
Repair Spalling Concrete
Open
237,918
-
237,918
9,351
32
9,383
228,535
-
228,535
05010
420 -515
KHS Asbestos Floor Removal
Open
304 ,704
-
304,704
212,518
-
212,518
92,186
-
92,186
05011
420 -515
Floor Covering Replacement
Open
728,708
-
728,708
242,483
257,556
500,039
228,669
-
228,669
05012
420 -515
Kodiak High School HVAC
Open
250,000
-
250,000
173
35
208
249,792
-
249,792
05013
420 -515
KHS Exterior Insulation & Windows
Open
596,020
-
596,020
4,117
132
4,249
591,771
36,350
555,421
05014
420 -515
Kodiak HS/MSCpbtRoofUpgrade
Open
523,504
76,496
600,000
15,727
601,638
617,365
(17,365)
-
(17,365)
05015
420 -515
H.S Voc ed/classroom Reclaimation
Open
4,840,788
-
4,840,788
58,296
101,070
159,366
4,681,422
61,773
4,619,649
05016
420 -515
East Elementary HVACUpgrade
Open
520,000
-
520,000
41,958
76,949
118,907
401,093
14,577
386,516
05017
420515
Learning Center Renovation
Open
1,181,336
-
1,181,336
7,004
20,464
27,468
1,153,868
84,844
1,069,024
05022
4101523
KMS Seismic Upgrade
Open
-
2,957,000
2,957,000
129,947
2,648,241
2,778,188
178,812
84,844
93,968
05023
410 -524
Peterson School Seismic Upgrade
Open
540,508
-
540,508
7,156
56,800
63,956
476,552
20,148
456,404
05026
410 -523
KHS Library Seismic
Open
465,618
-
465,618
5,252
266,889
272,141
193,477
371,607
(178,130)
07001
430 -465
Area Wide School Equipment
Open
70,000
-
70,000
-
64,804
64,804
5,196
-
5,196
07004
430 -465
Larsen Bay Equipment
Open
70,000
-
70,000
-
-
-
70,000
-
70,000
07005
430 -465
Main Elementay Playground Equipment
Complete
25,000
-
25,000
-
25,000
25,000
-
-
-
07008
430530
Seismic Repair
Open
1,300,000
(1,043,000)
257,000
-
-
-
257,000
-
257,000
07012
430525
Ouzinkie School Seismic Upgrade
Open
308,344
-
308,344
2,129
64,170
66,299
242,045
7,619
234,426
07014
430525
East Elementary Window Seismic
Open
138,606
-
138,606
210
5,544
5,754
132,852
-
132,852
07015
410 -531
HS Kitchen Floor
Open
-
12,323
12,323
6,520
5,803
12,323
-
-
-
07018
Old High School Pool Repair
Open
40,000
-
40,000
-
-
-
40,000
-
40,000
08001
410549
KMS Asbestos Abatement
Open
-
182,000
182,000
-
131,333
131,333
50,667
-
50,667
08002
410549
Main Elementary Aesbestos Abatement
Open
-
43,000
43,000
-
32,800
32,800
10,200
-
10,200
08003
410 -549
KHS Soil Remediation
Open
-
497,000
497,000
-
460,878
460,878
36,122
-
36,122
420
Ouzinkie Sprinkler System
Open
-
330,000
330
-
-
-
330,000
-
330,000
420
Ouzinkie Generator Replacement
Open
-
88,000
88,000
-
-
-
88,000
88,000
Total capital projects education
23,610,511
11,588,370
35,198,881
2,187,993
7,043,020
9,231,013
25,967,868
10,945,644
15,022,224
Capital projects - Health:
07017
Hospital Solarioum
Open
25,000
-
25,000
-
-
-
25,000
25,000
Total capital projects health
25,000
-
25,000
-
-
25,000
25,000
(continued)
106
KODIAK ISLAND BOROUGH
Capital Projects Funds
Supplemental Schedule of Capital Projects
Year ended June 30, 2008
NOTE: This schedule inclues expenditures from major capital project funds,
nonmajor capital project funds and snatching costs recorded in the
General Fund.
107
r r r r rr r r r rr rr rr rr rr r rr rr ■r r rr
Encumbrances
Project
AppropriationE
Total
Expenditures
Total
Unexpended
Current
Unencumbered
No.
Project
Status
Prmr
2008
appropriations
Prior
00
expenditures
balance
encumbrances
balance
Capital projects - Other:
85
410 -471
Village Metals Removal
Open
S 150,000
-
150,000
121,256
-
121,256
28,744
-
28,744
164
430 -645
Waste Management Imp
Open
1,741,400
-
1,741,400
936,714
-
936,714
804,686
19,606
785,080
02107
430 -648
ADF &G Research Study
Open
200,000
-
200,000
136,732
13,164
149,896
50,104
-
50,104
03108
410-495
Borough Building Parking
Open
50,000
-
50,000
-
-
-
50,000
-
50,000
03109
410 -496
Borough Air Handling
Open
10,000
-
10,000
-
10,000
-
10,000
03110
410 -497
KIB Emergency Generator
Open
20,000
-
20,000
2,353
-
2,353
17,647
-
17,647
03114
430 -507
CIAP Grant
Open
319,985
-
319,985
293,694
23,049
316,743
3,242
-
3,242
06001
410 -465
Computer Upgrade
Complete
114,000
-
114,000
102,222
11,778
114,000
-
-
-
06007
430 -532
ADF & G Building Design
Open
1,500,000
-
1,500,000
-
-
-
1,500,000
-
1,500,000
07010
430 -530
ADF & G Near Island Facility
Open
500,000
-
500,000
-
500,000
-
500,000
03120
410 -624
Womens Bay Community Plan
Open
33,380
-
33,380
22,392
-
22,392
10,988
-
10,988
08004
410 -706
Computer Assested Appraisal
Open
-
400,000
400,000
-
230,282
230,282
169,718
157,694
12,024
08008
Near Island Fish and Game Buiding
Open
950,000
950,000
-
-
-
950,000
-
950,000
Total - capital projects other
4,638,765
1,350,000
5,988,765
1,615,363
278,273
1,893,636
4,095,129
177,300
3,917,829
Capital projects - Public Safety
174
410 -684
Bayside Storage/Bay Add
Open
426,800
-
426,800
3,222
38,407
41,629
385,171
-
385,171
00102
410 -698
Bayside Underground Electrical
Open
22,000
-
22,000
-
-
22,000
-
22,000
05020
430 -140
Predisaster Mitigation Grant
Open
41,724
13,908
55,632
20,114
35,711
55,825
(193)
-
(193)
07009
430.530
Tsunami Siren, Upgrades & Additions
Open
100,000
-
100,000
-
12,918
12,918
87,082
-
87,082
Total - capital projects public safety
590,524
13,908
604,432
23,336
87,036
110,372
494,060
-
494,060
Capital projects - Recreation
146
410 -663
BMX Bike Trail
Open
94,670
-
94,670
49,278
30,964
80,242
14,428
-
14,428
06008
430 -526
Summit Lake Trail
Open
23,500
-
23,500
17,210
971
18,181
5,319
-
5,319
07003
430 -530
Island Lake Trail
Open
48,000
-
48,000
-
350
350
47,650
-
47,650
07006
430 -465
Port Lions Community Workshop
Open
10,000
10,000
-
3,147
3,147
6,853
-
6,853
Total - capital projects recreation
176,170
-
176,170
66,488
35,432
101,920
74,250
-
74,250
Transportation
177
430-687
Anton Larsen Boat Ramp
Open
896,350
-
896,350
625,385
249,399
874,784
21,566
4,550
17,016
07011
430 -465
Ouzinkie Dock Replacement
Open
570,000
-
570,000
-
211,343
211,343
358,657
-
358,657
07016
R and R Panamaroff Creek Culverts
Open
30,000
30,000
-
-
-
30,000
-
30,000
Total - capital projects transportation
1,496,350
-
1,496,350
625,385
460,742
1,086,127
410,223
4,550
405,673
Total all capital projects
S 30,537,320
12,952,278
43,489,598
4,518,565
7,904,503
12,423,068
31,066,530
11,127,494
19,939,036
NOTE: This schedule inclues expenditures from major capital project funds,
nonmajor capital project funds and snatching costs recorded in the
General Fund.
107
r r r r rr r r r rr rr rr rr rr r rr rr ■r r rr
ENTERPRISE FUNDS
The Municipal Solid Waste Collection and Disposal Fund accounts for the
collection and disposal of solid waste and recycling services for the Kodiak Island
Borough.
The Hospital Facilities Fund 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.
The 911 Service Fund accounts for funds collected from phone charges and pays for
a 911 emergency system.
1
I KODIAK ISLAND BOROUGH
108
Enterprise Funds
1
Municipal Solid Waste Collection and Disposal
Schedule of Revenues, Expenses, and
Changes in Fund Net Assets
Budget and Actual
Year ended June 30, 2008
'
(With financial information for the year ended June 30,
2007)
2008
Variance with
'
Final Budget
Final
Positive
2007
Budget Actual
(Negative)
Actual
'
Operating revenues:
Solid waste collection
$ 2,766,713 2,839,830
73,117
2,748,563
Solid waste disposal
1,065,968 1,071,941
5,973
1,184,422
'
Other
Total
1,000 1,920
3,833,681
920
3,566
operating revenues
3,913,691
80,010
3,936,551
Operating expenses:
Personnel services
699,710 938,916
(239,206)
672,140
'
Refuse collection
1,294,662 1,257,731
36,931
1,123,231
Refuse disposal
306,000 346,396
(40,396)
265,315
Professional services
368,847 446,764
(77,917)
176,045
Maintenance and repairs
43,000 77,960
(34,960)
29,535
'
Landfill closure and postclosure costs
270,000 819,143
(549,143)
(36,350)
Depreciation
348,326 265,885
82,441
271,947
General and administration
388,136 225,018
163,118
190,863
Telephone services
8,000 6,613
1,387
7,373
'
Recycling services
200,000 231,085
(31,085)
168,963
Contributions
- 13,315
(13,315)
11,783
Total operating expenses
3,926,681 4,628,826
(702,145)
2,880,845
Operating income
(93,000) (715,135)
(622,135)
1,055,706
Other income:
State aid
- -
-
24,205
'
Investment income
83,000 247,788
164,788
122,405
Income before transfers
10,0 0 467,347
45 , 47
1,202,316
Other financing sources:
1
Transfers in
10,000 6,450
6,450
6,450
Change in net assets
$ - (460,897)
(460,897)
1,208,766
'
Total net assets - beginning
4,815,573
3,606,807
Total net assets - ending
$ 4,354,676
4,815,573
108
KODIAK ISLAND BOROUGH
Enterprise Funds
Hospital Facilities
Schedule of Revenues, Expenses, and
Changes in Net Assets
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
Operating revenues:
Lease income
Operating expenses:
Personnel services
Maintenance and repairs
Depreciation
General and administration
Total operating expenses
Operating income (loss)
Other income (expense):
Contribution to Providence Hospital
Investment income
Interest expense
Loss before transfers
Other financing sources (uses):
Transfers in
Transfers out
Net other financing sources (uses)
Change in net assets
Total net assets - beginning
Total net assets - ending
109
2008
Variance with
'
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
'
$ 720,000
720,000
—
1,081,110
5,000
5,871
(871)
5,000
5,000
1,276,560
5,825
988,579
(825)
287,981
12,425
1,073,275
,
12,000
12,949
(949)
—
1,298,560
1,013,224
285,336
1,090,700
(578,560)
(293,224)
285,336
(9,590)
'
(108,000)
(57,141)
50,859
(150,000)
21,999
21,999
7,045
(54,290)
(54,285)
5
(56,719)
'
(740,850)
(382,651)
358,199
(209,264)
66,500
66,500
—
66,500
(590,000)
(200,000)
390,000
(235,593)
(523,500)
(133,500)
390,000
(169,093)
'
$ (1,264,350)
(516,151)
748,199
(378,357)
17,490,139
17,868,496
$
16,973,988
17,490,139
'
109
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KODIAK ISLAND BOROUGH
Enterprise Funds
Kodiak Fisheries Research Center
Schedule of Revenues, Expenses, and
Changes in Net Assets
Budget and Actual
Year ended June 30, 2008
(With financial information for the year ended June 30, 2007)
Operating revenues:
Lease income
Operating expenses:
Personnel services
Depreciation
General and administration:
Cleaning and janitorial
Heating
Electrical
Plumbing
Air conditioning
Elevators
Miscellaneous
Total operating expenses
Operating income (loss)
Other income (expense):
Investment income
Interest expense
Change in net assets
Total net assets - beginning
Total net assets - ending
110
2008
Variance with
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
$ 1,590,390
1,616,992
26,602
1,579,600
170,130
334,442
(164,312)
227,139
744,294
726,745
17,549
742,613
43,000
49,015
(6,015)
38,942
162,000
216,285
(54,285)
173,430
211,000
182,849
28,151
183,432
201,700
33,871
167,829
21,377
16,000
6,028
9,972
1,133
2,500
2,337
163
2,228
129,230
73,797
55,433
72,043
1,679,854
1,625,369
54,485
1,462,337
(89,464)
(8,377)
81,087
117,263
90,000
161,933
71,933
143,336
(425,165)
(402,063)
23,102
(425,163)
$ (424,629)
(248,507)
176,122
(164,564)
10,773,726
10,938,290
$
10,525,219
10,773,726
110
KODIAK ISLAND BOROUGH
Enterprise Funds
911 Services Fund
Schedule of Revenues, Expenses, and
Changes in Net Assets
Budget and Actual
Year ended June 30, 2008
(With financial infonnation for the year ended June 30, 2007)
Operating revenues:
Customer charges
Operating expenses:
Personnel services
Miscellaneous
Telephone services
Total operating expenses
Operating income (loss)
Other income:
Investment income
Change in net assets
Total net assets - beginning
Total net assets (deficits) - ending
2,444
(50,611)
40,962
$ (9,649)
2,444
1,340
(102)
41,064
40,962
111
(50,611)
2008
Variance with
Final Budget
Final
Positive
2007
Budget
Actual
(Negative)
Actual
$ 69,000
54,925
(14,075)
62,698
10,500
3,000
7,500
3,000
—
190
(190)
178
58,500
104,790
(46,290)
60,962
69,000
107,980
(38,980)
64,140
—
(53,055)
(53,055)
(1,442)
2,444
(50,611)
40,962
$ (9,649)
2,444
1,340
(102)
41,064
40,962
111
(50,611)
SUPPLEMENTARY SCHEDULES
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KODIAK ISLAND BOROUGH
SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY
June 30, 2008
Annual principal and interest requirements on General Obligation Refunding and Construction Bonds
Year Principal Interest Total
2009
2,540,000
1,519,745
4,059,745
2010
2,645,000
1,423,992
4,068,992
2011
2,765,000
1,307,605
4,072,605
2012
2,525,000
1,184, 575
3,709,575
2013
2,625,000
1,077,707
3,702,707
2014
2,745,000
966,272
3,711,272
2015
1,315,000
848,432
2,163,432
2016
1,370,000
792,082
2,162,082
2017
1,425,000
732,912
2,157,912
2018
1,485,000
674,198
2,159,198
2019
1,550,000
611,218
2,161,218
2020
1,620,000
543,323
2,163,323
2021
1,685,000
470,899
2,155,899
2022
1,760,000
395,475
2,155,475
2023
1,845,000
313,442
2,158,442
2024
1,930,000
224,255
2,154,255
2025
1,330,000
218,360
1,548,360
2026
540,000
84,460
624,460
2027
565,000
58,000
623,000
2028
595,000
29,750
624,750
$ 34,860,000
$ 13,476,702
$ 48,336,702
112
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION REFUNDING BONDS, 1998 SERIES A
RETIREMENT SCHEDULE
June 30, 2008
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 is Alaska USA
Trust Company. These bonds were issued to refund all but $1,030,000 of the 1994 bond issue, resulting in a
total interest savings of $504,859.
113
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Interest
Principal
Interest
Fiscal
Interest
due
due
due
year
rate
August 15
February 15
February 15
Total
2009
4.30%
172,323
1,200,000
172,322
1,544,645
2010
4.30%
146,523
1,250,000
146,522
1,543,045
2011
4.30%
119,648
1,305,000
119,647
1,544,295
2012
4.30%
91,590
1,360,000
91,590
1,543,180
2013
4.30%
62,350
1,420,000
62,350
1,544,700
2014
4.30%
31,820
1,480,000
31,820
1,543,640
$ 624,254
$ 8,015,000
$ 624,251
$ 9,263,505
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KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2000 SERIES E
RETIREMENT SCHEDULE
June 30, 2008
2000 E 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 Bond. 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.
Principal
Interest
Interest
Fiscal
Interest
due
year
rate
August 01
2009
5.00%
13,000
2010
5.00%
8,875
2011
5.00%
4,500
$ 520,000
$ 26,375
$ 26,375
Principal
Interest
due
due
February 01
February 01
Total
165,000
13,000
191,000
175,000
8,875
192,750
180,000
4,500
189,000
$ 520,000
$ 26,375
$ 572,750
114
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2000 SERIES F
RETIREMENT SCHEDULE
June 30, 2008
2000 F 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 Bond. 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.
115
Interest
Principal
Interest
Fiscal
Interest
due
due
due
year
rate
August 01
February 01
February 01
Total
2009
7.05%
15,980
140,000
15,980
171,960
2010
7.10%
11,045
150,000
11,045
172,090
2011
7.15%
5,720
160,000
5,720
171,440
$ 32,745
$ 450,
$ 32,745
$ 515,490
115
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KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2004 SERIES C
RETIREMENT SCHEDULE
June 30, 2008
2004 C 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 Series C Bond.
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 fund planning, design, and construction of
capital improvements to the Larsen Bay School, Kodiak Middle School and Kodiak High School. The proceeds will also
116
Interest due
Principal due
Interest due
Fiscal year
Interest rate
July 01
July 01
January 01
Total
2009
4.250%
171,011
350,000
171,011
692,022
2010
4.250%
163,573
365,000
163,573
692,146
2011
4.250%
155,817
385,000
155,817
696,634
2012
4.000%
147,636
400,000
147,636
695,272
2013
4.000%
139,136
415,000
139,136
693,272
2014
4.000%
130,836
435,000
130,836
696,672
2015
4.100%
122,136
450,000
122,136
694,272
2016
4.250%
113,136
470,000
113,136
696,272
2017
4.300%
103,501
485,000
103,501
692,002
2018
4.400%
93,194
510,000
93,194
696,388
2019
4.500%
82,229
530,000
82,229
694,458
2020
4.500%
70,569
555,000
70,569
696,138
2021
4.625%
58,082
580,000
58,082
696,164
2022
4.750%
45,032
605,000
45,032
695,064
2023
4.800%
31,041
635,000
31,041
697,082
2024
4.800%
15,960
665,000
15,960
696,920
$ 1,642,889
$ 7,835,000
$ 1,642,889
$ 11,120,778
116
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2004 SERIES D
RETIREMENT SCHEDULE
June 30, 2008
2004 D BOND ISSUE
This issue, dated December 1, 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 Series D Bond. 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 fund the
acquisition and construction of school capital improvements in the Borough, including a new school pool and the
Kodiak High School Voc Ed /Classroom reclamation.
117
Interest due
Principal due
Interest due May
Fiscal year
Interest rate
November 01
November 01
01
Total
2009
3.00%
211,113
435,000
204,588
850,701
2010
3.00%
204,588
445,000
197,913
847,501
2011
3.50%
197,913
460,000
189,863
847,776
2012
3.50%
189,863
475,000
181,550
846,413
2013
3.50%
181,550
490,000
172,975
844,525
2014
4.00%
172,975
510,000
162,775
845,750
2015
4.00%
162,775
530,000
152,175
844,950
2016
4.00%
152,175
550,000
141,175
843,350
2017
4.00%
141,175
570,000
129,775
840,950
2018
4.00%
129,775
595,000
117,875
842,650
2019
4.50%
117,875
620,000
103,925
841,800
2020
4.50%
103,925
650,000
89,300
843,225
2021
4.50%
89,300
675,000
74,113
838,413
2022
4.50%
74,113
705,000
58,250
837,363
2023
5.00%
58,250
740,000
39,750
838,000
2024
5.00%
39,750
775,000
20,375
835,125
2025
5.00%
109,180
815,000
-
924,180
$ 2,336,295
$ 10,040,000
$ 2,036,377
$ 14,412,672
117
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KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2008 SERIES A
RETIREMENT SCHEDULE
June 30, 2008
2008 A BOND ISSUE
This issue, dated April 15, 2008, 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 2008 Series
One Bond. This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond
council, Birch, Horton, Bittner and Cherot of Anchorage, Alaska. This bond was issued to fund the acquisition and
construction of school capital improvements in the Borough, including a new school pool.
118
Interest due
Principal due
Interest due
Fiscal year
Interest rate
October 01
April 01
April 01
Total
2009
5.00%
172,437
250,000
186,980
609,417
2010
5.00%
180,730
260,000
180,730
621,460
2011
5.00%
174,230
275,000
174,230
623,460
2012
5.00%
167,355
290,000
167,355
624,710
2013
5.00%
160,105
300,000
160,105
620,210
2014
5.00%
152,605
320,000
152,605
625,210
2015
5.00%
144,605
335,000
144,605
624,210
2016
5.00%
136,230
350,000
136,230
622,460
2017
4.00%
127,480
370,000
127,480
624,960
2018
4.00%
120,080
380,000
120,080
620,160
2019
4.00%
112,480
400,000
112,480
624,960
2020
4.25%
104,480
415,000
104,480
623,960
2021
4.25%
95,661
430,000
95,661
621,322
2022
4.38%
86,524
450,000
86,524
623,048
2023
4.50%
76,680
470,000,
76,680
623,360
2024
4.70%
66,105
490,000
66,105
622,210
2025
4.80%
54,590
515,000
54,590
624,180
2026
4.90%
42,230
540,000
42,230
624,460
2027
5.00%
29,000
565,000
29,000
623,000
2028
5.00%
14,875
595,000
14,875
624,750
2,218,482
8,000,000
2,233,025
12,451,507
118
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STATISTICAL SECTION
Statistical Tables provide report users with a better historical
perspective in assessing current financial status and trends of
the Borough.
KODIAK ISLAND BOROUGH
Net Assets by Component
Last Four Fiscal Years
(accrual basis of accounting)
Governmental activities:
Invested in capital assets, net of related debt
Unrestricted
Total govenmmmental activities net assets
Business -type activities:
Invested in capital assets, net of related debt
Unrestricted
Total business -type activities net assets
Primary government:
Invested in capital assets, net of related debt
Unrestricted
Total primary government net assets
Source: Borough general ledger
Fiscal Year
2005
2006
2007
2008
$ 61,154,204
$ 62,716,326
$ 73,425,394
$ 43,951,753
45,052,197
45,653,357
37,640,716
71,029,820
$ 106,206,401
$ 108,369,683
$ 111,066,110
$ 114,981,573
$ 39,878,785 $ 38,588,510 $ 38,623,762 $ 34,706,597
(7,263,950) (6,133,853) (5,503,362) (2,862,363)
$ 32,614,835 $ 32,454,657 $ 33,120,400 $ 31,844,234
$ 101,032,989 $ 101,304,836 $ 112,049,156 $ 78,658,350
37,788,247 39,519,504 32,137,354 68,167,457
$ 138,821,236 $ 140,824,340 $ 144,186,510 $ 146,825,807
The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 4 years of data.
119
1
KODIAK ISLAND BOROUGH
Changes in Net Assets
Last Four Fiscal Years
(accrual basis of accounting)
120
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Fiscal Year
2005
2006
2007
2008
Expenses
Governmental activities:
General government
$ 7,133,461
$ 3,984,390
$ 4,755,754
$ 4,736,456
Emergency preparedness
25,850
8,598
10,384
13,841
Community and economic development
509,680
784,002
786,614
1,105,156
Health and sanitation
387,619
403,866
414,144
449,792
Education, culture, and recreation
185,993
164,053
161,247
183,747
Service district maintenance
347,934
336,385
362,189
378,661
Education, culture, and recreation
10,207,757
10,831,588
10,788,188
11,524,160
Interest on long -term debt
1,101,598
1,700,089
1,290,216
1,270,423
Total governmental activities expenses
19,899,892
18,212,971
18,568,736
19,662,236
Business -type activities:
Municipal solid waste collection and disposal
3,362,348
3,446,453
2,888,821
4,628,826
Hospital facilities
1,344,987
1,304,583
1,297,419
1,124,650
Kodiak fisheries research center
1,878,788
1,856,875
1,889,750
2,027,432
911 services
69,178
57,194
64,140
107,980
Total business -type activities expenses
6,655,301
6,665,105
6,140,130
7,888,888
Total primary government expenses
$ 26,555,193
$ 24,878,076
$ 24,708,866
$ 27,551,124
Program Revenues
Governmental activities:
Charges for services:
General government
$ 367,530
$ 311,802
$ 1,058,330
$ 436,284
Community and economic development
21,886
-
68,867
148,682
Health and sanitation
-
-
-
7,370
Education, culture, and recreation
56,704
108,218
-
-
Service district maintenance
20,000
20,000
20,015
28,345
Primary and secondary education
-
95,025
-
-
Operating grants and contributions
721,453
1,240,547
1,935,687
1,911,246
Capital grants
2,917,160
298,852
184,922
1,926,465
Total governmental activities program revenues
4,104,733
2,074,444
3,267,821
4,458,392
Business -type activities:
Charges for services:
Municipal solid waste collection and disposal
3,141,856
3,665,289
3,932,985
3,911,771
Hospital facilities
1,153,333
1,153,333
1,081,110
720,000
Kodiak fisheries research center
1,566,686
1,572,474
1,581,850
1,614,532
911 services
26,721
65,614
62,698
54,925
Total business -type activities program revenues
5,888,596
6,456,710
6,658,643
6,301,228
Total primary government program revenues
$ 9,993,329
$ 8,531,154
$ 9,926,464
$ 10,759,620
Net(expense) /revenue
Governmental activities
$ (15,795,159)
$ (16,138,527)
$ (15,300,915)
S (15,203,844)
Business -type activities
(766,705)
(208,395)
518,513
(1,587,660)
Total primary government net expense
$ (16,561,864)
$ (16,346,922)
$ (14,782,402)
$ (16,791,504)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes
$ 9,063,729
$ 9,807,551
$ 9,754,916
$ 10,118,602
Severance taxes
1,005,539
1,186,908
1,316,689
1,436,210
Unrestricted grants and contributions
2,384,538
3,482,351
3,242,740
3,144,750
Investment earnings
1,750,321
2,798,391
3,745,990
3,912,145
Other
55,692
779,328
(225,636)
380,550
Transfers
170,602
247,280
162,643
127,050
Total governmental activities
$ 14,430,421
$ 18,301,809
$ 17,997,342
$ 19,119,307
Business -type activities:
Investment earnings
70,812
161,892
274,126
434,164
Other
-
391,895
35,747
4,380
Transfers
(170,602)
(247,280)
(162,643)
(127,050)
Total business -type activities
(99,790)
306,507
147,230
311,494
Total primary government
$ 14,330,631
$ 18,608,316
$ 18,144,572
$ 19,430,801
Change In Net Assets
Governmental activities
$ (1,364,738)
$ 2,163,282
$ 2,696,427
$ 3,915,463
Business -type activities
(866,495)
98,112
665,743
(1,276,166)
Total primary government
$ (2,231,233)
$ 2261 3�
$ 3,362,170
S
The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 4 years of data.
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KODIAK ISLAND BOROUGH
Fund Balances of Governmental Funds
Last Four Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2005 2006 2007 2008
General fund
Reserved $ - $ - $ 554,975 $ 1,341,798
Unreserved 1,813,013 2,026,113 2,238,338 1,888,681
Total general fund $ 1,813,013 $ 2,026,113 $ 2,793,313 $ 3,230,479
All other governmental funds
Reserved
$ 8,090,822
$ 7,742,903
$ 7,367,644
$ 6,969,951
Unreserved, reported in:
Special revenue funds
34,055,115
36,837,895
35,316,321
36,286,898
Debt service funds
(189,824)
76,898
101,090
159,788
Capital projects funds
21,412,256
20,810,819
2I,711,585
25,805,778
Total all other governmental funds
$ 63,368,369
$ 65,468,515
$ 64,496,640
$ 69,222,415
The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 4 years of data.
121
s
The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 5 years of data.
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KODIAK ISLAND BOROUGH
'
Changes in Fund Balances of Governmental Funds
Last Five Fiscal Years
(modified accrual basis ofaccounting)
'
Fiscal Year
Revenues
2004
2005
2006
2007
2008
,
Taxes
$ 8,016,323
$ 9,063,729
$ 9,833,846
$ 9,750,682
10,254,477
Intergovernmental:
State sources
2,121,420
2,169,803
3,368,491
4,012,647
4,428,472
Federal sources
1,245,337
3,853,348
1,766,926
1,417,403
2,553,990
'
Land sale proceeds
9,206
22,738
177,164
47,087
19,458
Severance taxes
799,693
1,005,539
1,186,908
1,3I6,689
1,436,210
Licenses, permits, fees, and other local revenues
764,913
692,540
820,286
690,962
658,381
Otherrevenues
222,837
75,841
125,040
633,925
353,850
'
Investment earnings
866,143
1,772,893
2,803,466
3,751,609
3,918,008
Total revenues
14,045,872
18,656,431
20,082,127
21,621,004
23,622,846
Expenditures
General government
2,118,166
2,713,633
3,950,927
4,504,052
3,818,544
Fire services
864,703
425,506
-
-
385,529
Emergency preparedness
48,755
23,521
6,098
7,884
5,713
,
Community and economic development
536,111
509,680
784,002
786,614
923,203
Health and sanitation department
331,884
329,738
363,520
373,132
387,053
Education, culture, and recreation
217,759
185,993
161,633
158,161
183,747
Maintenance and operations
567,094
698,119
-
-
Service district maintenance
425,712
347,934
336,385
498,539
374,320
Primary and secondary education
7,721,706
7,973,035
8,430,840
8,387,440
9,123,412
Fem Fuller trust
24,500
22,547
-
-
-
Capital outlay:
Schools
131,324
68,109
464,142
1,436,639
7,029,628
General
656,423
2,972,174
332,398
373,038
887,189
Debt service:
Principal
1,260,167
1,784,859
1,814,553
2,100,361
2,205,441
Interest
644,046
984,766
1,584,763
1,336,349
1,263,176
'
Other charges -bond issuance costs
-
43,661
-
Total expenditures
15,548,350
19,083,275
18,229,261
19,962,209
26,586,955
Excess ofrevenues over(under)expenditures
(1,502,478)
(426,844)
1,852,866
1,658,795
(2,964,109)
'
Other Financing Sources (Uses)
Proceeds from sales ofbonds
-
20,350,000
-
-
8,000,000
Bond premium
-
121,590
-
-
'
Transfers in
3,605,614
1,800,212
1,751,182
2,626,853
2,966,610
Transfers out
(1,961,054)
(1,629,610)
(1,503,902)
(2,464,210)
2,8( 39,560)
Total other financing sources(uses)
Net change in fund balances
1,644,560
$ 142,082
20,642,192
$ 20,215,348
247,280
$ 2,100,146
162,643
$ 1,821,438
8,127,050
5,162,941
Debt service as a percentage of noncapital
N/A
21.26 %
24.22 %
23.35 %
22.82 %
expenditure
s
The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 5 years of data.
1
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(a) Includes general fund only.
Source: Borough general ledger
123
Miscellaneous
— 10,408,608
44,945 11,012,528
140.901 12.146,017
— 12.037,232
— 11,319,467
11,731,234
— 13,268,083
82,604 14,104,388
14,714,664
KODIAK ISLAND BOROUGH
General Revenues by Source
Last Ten Fiscal Years
Licenses,
Inter -
Fiscal
Permits
Governmental Investment
Operating
Year
Taxes
and Fees
Revenue Income
Transfers
1999
$ 7,694.387
86.523
2,055,803 238,515
32,632
2000
8,057,781
92,609
1,770,038 358,351
129,829
2001
8,135.184
95,129
2,135,483 583,633
18,154
2002
8,017,344
95.857
3,397,240 294,675
200,000
2003
8,028.513
153.727
2,683.460 171.532
1,000.000
2004
8,165326
187,898
2,010,431 105,812
850,000
2005
9,378.816
161.621
1,925,405 265,392
2006
10,257,023
171,962
2.369.185 469,913
—
2007
10,218.016
78,720
3.325,899 399,149
—
2008
10.792,741
100,256
3.276.741 544.926
(a) Includes general fund only.
Source: Borough general ledger
123
Miscellaneous
— 10,408,608
44,945 11,012,528
140.901 12.146,017
— 12.037,232
— 11,319,467
11,731,234
— 13,268,083
82,604 14,104,388
14,714,664
KODIAK ISLAND BOROUGH
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Last Ten Years Assessed Values
$1,000,000,000
$800,000,000
$600,000,000
$400,000,000
$200,000,000
$0
124
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Ratio of
Total
Total
Assessed to
Fiscal
Real Property
Personal Property
Total
Direct
Total
Year Ended
Assessed
Full Value
Assessed
Full Value
Assessed
Full Value
Tax
Full Value
June 30,
Value
Determination
Value
Determination
Value
Determination
Rate
Determination
1999
577,551,709
599,696,900
109,304,683
297,058,600
686,856,392
896,755,500
9.94
76.59
2000
594,870,287
613,787,700
120,828,748
322,947,400
715,699,035
936,735,100
9.52
76.40
2001
626,906,341
641,419,200
121,849,192
336,548,600
748,755,533
977,967,800
1.00
76.56
2002
635,931,458
654,299,600
116,117,602
323,479,600
752,049,060
977,779,200
10.04
76.91
2003
642,995,612
679,949,700
117,456,245
323,755,200
760,451,857
1,003,704,900
10.07
75.76
2004
660,040,861
687,078,300
110,941,506
307,988,900
770,982,367
995,067,200
10.00
77.48
2005
678,425,914
731,267,000
105,481,537
300,735,600
783,907,451
1,032,002,600
11.03
75.96
2006
692,572,845
786,373,800
106,206,504
309,114,600
798,779,349
1,095,488,400
12.04
72.92
2007
710,848,299
836,778,900
94,833,515
297,380,200
805,681,814
1,134,159,100
11.47
71.04
2008
734,527,929
941,403,800
100,997,608
298,543,700
835,525,537
1,239,947,500
11.68
67.38
Sources: Borough
assessment and tax
records and State full value determination letter
Note: Property in Kodiak Island Bourough is reassesed once
every three years.Property is assessed at
actual value; therefore, the assessed
values are equal to actual value.Tax
rates are per $1,000 of assessed value. Full value determination includes all exempted property located in the
borough.
Last Ten Years Assessed Values
$1,000,000,000
$800,000,000
$600,000,000
$400,000,000
$200,000,000
$0
124
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
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KODIAK ISLAND BOROUGH
Direct and Overlapping Property Tax Rates and
Contributions to the School District
(per $1000 of Assessed Value)
Last Ten Fiscal Years
Note: The maximum mill rate allowed by State code is 30 mills
' Overlapping rates are those of local governments that apply to property owners within the City of Kodiak.
' Overlapping rates are those which apply to property owners located within special taxing districts in the borough.They do not apply to every property owner in the Borough.
125
Direct
me acnoos snsmct
Fiscal
Assessed
Amount of
Millage
Year
Value
Contribution
Equivalent
1999
686,856,392
Rate
9.45
2000
715,699,035
6.330,764
Overlapping
Rates
748,755,533
6.650,336
8.88
2002
752.049,060
7.106,289
9.45
2003
Woodland'
Trinity'
Mission'
2004
770,982,367
8.021,997
10.40
2005
783,907,451
8,324,045
Fiscal
2006
798,779,349
Acres
Islands
Lake
805,681,814
8.730,014
10.84
2008
835,525,537
8,951,157
10.71
Year
Borough
City'
Street
Street
Tide
Road Services Areas'
Fire Areas'
Ended
Basic
of
Lighting
Lighting
Gate
Monashka
Service
Bay view
Womens
Service
Womens
June 30,
Rate
Kodiak
Area
Area
Area
Bay
District I
Road
Bay
Area No. 1
Bay
Airport
1999
9.25
2.00
-
1.50
0.50
1.00
2.00
1.50
1.25
-
2000
9.25
2.00
-
1.50
0.50
1.00
2.00
1.50
1.25
-
2001
9.25
2.00
1.50
1.00
1.00
2.00
1.50
1.25
-
2002
9.25
2.00
-
-
-
1.50
1.25
1.00
2.00
1.50
125
-
2003
9.25
2.00
-
-
-
1.50
1.00
1.00
2.00
1.50
1.25
-
2004
9.25
2.00
-
0.50
1.00
1.50
1.00
1.00
2.00
1.50
1.25
-
2005
10.25
2.00
-
0.50
1.00
1.50
1.00
1.00
2.00
1.50
1.25
1.25
2006
11.00
2.00
-
0.50
1.00
2.50
1.25
1.00
2.00
1.50
1.25
1.25
2007
10.50
2.00
-
0.50
1.00
2.50
1.25
1.00
2.00
1.50
1.25
1.25
2008
10.50
2.00
-
0.50
1.00
2.50
1.25
1.00
2.00
1.50
125
1.25
Note: The maximum mill rate allowed by State code is 30 mills
' Overlapping rates are those of local governments that apply to property owners within the City of Kodiak.
' Overlapping rates are those which apply to property owners located within special taxing districts in the borough.They do not apply to every property owner in the Borough.
125
i onmouaons ro
me acnoos snsmct
Fiscal
Assessed
Amount of
Millage
Year
Value
Contribution
Equivalent
1999
686,856,392
6,492,876
9.45
2000
715,699,035
6.330,764
8.85
2001
748,755,533
6.650,336
8.88
2002
752.049,060
7.106,289
9.45
2003
760,451,857
7,581,994
9.97
2004
770,982,367
8.021,997
10.40
2005
783,907,451
8,324,045
10.62
2006
798,779,349
8,644,763
10.82
2007
805,681,814
8.730,014
10.84
2008
835,525,537
8,951,157
10.71
Source: Borough ordinance and assessment
Note: The maximum mill rate allowed by State code is 30 mills
' Overlapping rates are those of local governments that apply to property owners within the City of Kodiak.
' Overlapping rates are those which apply to property owners located within special taxing districts in the borough.They do not apply to every property owner in the Borough.
125
KODIAK ISLAND BOROUGH
Principal Property Tax Payers
Current Year and Ten Years Ago
2008
1999
Taxable
Assessed
Taxpayer
Value
Ocean Beauty Seafoods Inc
$ 14,245,989
Westward Seafoods, Inc
11,852,090
Alaska Communications Systems (c)
11,645,093
International Seafoods of AK
10,879,502
Mill Bay Plaza Assoc LTD
8,648,400
Brechan Enterprises Inc
8,496,630
Wal -Mart Real Est Bus Trust
8,322,087
Horizon Lines of Alaska LLC(a)
7,320,949
Koncor
6,797,500
Afognak Native Corp
6,730,109
North Pacific Seafoods(b)
Tyson Seafoods
Western Alaska Fisheries
1.4%
Kodiak Fishmeal Co
3
Safeway/MBPA
4
Leisnoi
14,532,437
Total
$ 94,938,349
Source: Borough tax records.
1.1%
1999
(a) In 1999 company name was Sea -Land Services.
(b) Alaska Pacific Seafoods combined with North Pacific Seafoods in 2006. It was ranked in 4th place in 1999.
(c) In 1999 company name was T.U. of the Northland.
126
Percentage
Percentage
of Total Borough
Taxable
of Total Borough
Assessed
Assessed
Assessed
Rank
Value
Value
Rank
Value
1
1.8%
$ 10,165,318
5
1.5%
2
1.5%
3
1.4%
10,922,176
3
1.6%
4
1.4%
14,532,437
1
2.1%
5
1.1%
6
1.1%
7
1.0%
8
0.9%
8,760,943
7
1.3%
9
0.8%
10
0.8%
10,647,201
4
1.6%
7,896,431
8
1.1%
11,306,393
2
1.6%
9,052,176
6
1.3%
7,171,400
9
1.0%
6,801,735
10
1.0%
11.8%
$ 97,256,210
14.1%
(a) In 1999 company name was Sea -Land Services.
(b) Alaska Pacific Seafoods combined with North Pacific Seafoods in 2006. It was ranked in 4th place in 1999.
(c) In 1999 company name was T.U. of the Northland.
126
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Fiscal Year
Taxes Levied
Ended
for the
June 30,
Fiscal Year
1999
7,704,172
2000
7,743,649
2001
8,164,127
2002
8,411,173
2003
8,395,117
2004
8,462,404
2005
8,785,412
2006
10,166,967
2007
9,957,089
2008
10,342,728
Source: Borough general ledger
KODIAK ISLAND BOROUGH
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Percentage
Fiscal Year of the Levy
Collections
7,889,858
Percentage
in Subsequent
Amount
of Levy
Years
7,575,491
98.3
314,367
7,507,018
96.9
175,066
7,912,859
96.9
204,458
8,313,881
98.8
362,377
8,167,437
97.3
178,885
8,125,629
96.0
69,831
8,139,198
92.6
521,516
9,901,965
97.4
292,820
9,797,780
98.4
96,675
10,257,340
99.2
—
127
Total Collections to Date
Percentage
Amount
of Levy
7,889,858
102.4
7,682,084
99.2
8,117,317
99.4
8,676,258
103.2
8,346,322
99.4
8,195,460
96.8
8,660,714
98.6
10,194,785
100.3
9,894,455
99.4
10,257,340
99.2
KODIAK ISLAND BOROUGH
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal
Year Population
1999
13,848
(a)
2000
13,989
(a)
2001
13,913
(a)
2002
14,167
(a)
2003
13,874
(a)
2004
13,811
(a)
2005
13,466
(b)
2006
13,638
(c)
2007
13,506
(a)
2008
13,574
(a)
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.
(c) Information obtained from State of Alaska, Department of Labor, Economic Information.
Note: Detail regarding the borough's outstanding debt can be found in the notes to the financial statements.
All outstanding debt is General Bonded Debt.
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Less Debt
Net General
Net General
Assessed
Gross
Service
Bonded
Per
Debt Per
Value
Bonded Debt
Fund
Debt
Capita
Assessed Value
$ 686,856,392
$ 18,910,000
$ 340,159
$ 18,569,841
$ 1,341
2.70%
715,699,035
17,025,000
272,651
16,752,349
1,198
2.34%
748,755,533
17,690,000
344,942
17,345,058
1,247
2.32%
752,049,060
16,615,000
448,065
16,166,935
1,141
2.15%
760,451,857
15,620,000
17,879
15,602,121
1,125
2.05%
770,982,367
14,385,000
33,915
14,351,085
1,039
1.86%
783,907,451
32,965,000
(348,233)
33,313,233
2,474
4.25%
798,779,349
31,155,000
(81,511)
31,236,511
2,290
3.91%
805,681,814
29,060,000
(60,380)
29,120,380
2,156
3.61%
835,525,537
34,860,000
(9,862)
34,869,862
2,569
4.17%
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.
(c) Information obtained from State of Alaska, Department of Labor, Economic Information.
Note: Detail regarding the borough's outstanding debt can be found in the notes to the financial statements.
All outstanding debt is General Bonded Debt.
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1
1
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1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Computation of Direct and Overlapping Debt
June 30, 2008
(a) Gross debt outstanding less applicable amounts in the Debt Service Funds.
(b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to
valuation of property subject to taxation in reporting unit.
(c) 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.
Sources: Borough general ledger and City of Kodiak records.
129
Percentage
Kodiak Island
Net Debt
Applicable to this
Borough
Outstanding
Governmental
Share of
(a)
Unit (b)
Debt (c)
Kodiak Island Borough:
General obligation bonds
$ 34,860,000
100% $
34,860,000
City of Kodiak:
General obligation bonds
8,000,000
100%
8,000,000
Revenue bonds
6,215,000
100%
6,215,000
Total
$ 49,075,000
$
49,075,000
(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.
(c) 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.
Sources: Borough general ledger and City of Kodiak records.
129
KODIAK ISLAND BOROUGH
Legal Debt Margin Information
Last Four Fiscal Years
2005
2006
2007
2008
Assessed value $ 783,907,451
798,779,349
805,681,814
835,525,537
Plus exempt property 32,491,840
45,783,490
49,539,000
50,194,170
Total $ 816,399,291
844,562,839
855,220,814
885,719,707
The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions.
Debt capacity is ultimately determined by the voters and the marketplace.
Source: Borough assessment records (certified tax rolls).
130
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Ratio of Annual Debt Service Expenditures
for General Bonded Debt to Total
General Governmental Expenditures and Transfers
Last Ten Fiscal Years
(a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of
term bonds.
Sources: Borough general ledger and debt documents.
131
Total general
Ratio of
governmental
debt service
Fiscal
Interest
Total debt
expenditures
to general
year
Principal (a)
and fees
service
and transfers
expenditures
1999
1,915,833
853,652
2,769,485
10,957,892
25.3
2000
1,905,833
858,164
2,763,997
9,827,488
28.1
2001
2,015,834
746,994
2,762,828
10,735,365
25.7
2002
1,095,833
853,543
1,949,376
10,726,858
18.2
2003
1,140,833
803,224
1,944,057
13,071,957
14.9
2004
1,255,833
667,744
1,923,577
11,014,093
17.5
2005
1,780,417
983,195
2,763,612
12,027,717
23.0
2006
1,814,553
1,583,488
3,398,041
13,054,983
26.0
2007
2,100,361
1,329,456
3,429,817
13,337,188
25.7
2008
2,205,441
1,255,313
3,460,754
14,277,498
24.2
(a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of
term bonds.
Sources: Borough general ledger and debt documents.
131
KODIAK ISLAND BOROUGH
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Percent of
Personal
General
Income
Total
Fiscal
Obligation
Notes
Primary
Year
Bonds
Payable
Government
1999
18,910,000
2,866,855
21,776,855
2000
17,025,000
2,823,480
19,848,480
2001
17,690,000
2,531,150
20,221,150
2002
16,615,000
1,911,221
18,526,221
2003
15,620,000
1,241,254
16,861,254
2004
14,385,000
1,262,123
15,647,123
2005
32,965,000
1,270,210
34,235,210
2006
31,155,000
1,582,188
32,737,188
2007
29,060,000
1,636,924
30,696,924
2008
34,860,000
1,768,660
36,628,660
Percent of
Personal
Per
Income
Capita
6.26%
1,573
5.32%
1,419
5.29%
1,453
4.86%
1,308
4.28%
1,215
3.83%
1,133
7.96%
2,542
6.98%
2,400
*
2,273
*
2,698
Note: Detail regarding the borough's outstanding debt can be found in the notes to the financial statements. All
general obligation bonds are related to Governmental Activities, all notes payable are related to business
type activities.
* Information not available at report time.
132
1
' Sources:
(a) State of Alaska, DCRA certified population.
' (b) State of Alaska Department of education using www.eed. state .ak.us /stats /OuickFacts /ADM.ndf.
(c) Department of Labor using www.ahnis.labor.state.us.
(d) Per Capita Personal Income and Personal Income figures are not yet available for 2007 to 2008.
li
1
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1 133
KODIAK ISLAND BOROUGH
Demographic and Economic Statistics
'
Last Ten Fiscal Years
Per Capita
Percentage
Fiscal
Personal Personal
School
Unemployment
Year
Population (a)
Income (c) Income (c)
Enrollment (b)
Rate (c)
1999
13,848
347,630,000 25,264
2,798
5.1
'
2000
2001
13,989
13,913
373,164,000 26,695
382,227,000 27,794
2,810
2,774
13.4
10.9
2002
14,167
381,413,000 27,873
2,821
18.2
'
2003
2004
13,874
13,811
393,604,000 29,479
408,069,000 30,874
2,750
2,677
10.3
10.6
2005
13,466
430,051,000 32,896
2,678
9.5
2006
13,638
469,161,000 36,807
2,718
6.7
'
2007
13,506
(d) (d)
2,635
6.2
2008
13,574
(d) (d)
2,671
9.3
' Sources:
(a) State of Alaska, DCRA certified population.
' (b) State of Alaska Department of education using www.eed. state .ak.us /stats /OuickFacts /ADM.ndf.
(c) Department of Labor using www.ahnis.labor.state.us.
(d) Per Capita Personal Income and Personal Income figures are not yet available for 2007 to 2008.
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1 133
KODIAK ISLAND BOROUGH
Average Monthly Employment & Earnings
Last Three Fiscal Years
Number of Business by Company Size 2006'
Fiscal Year 2005
Fiscal Year 2006
Fiscal Year 2007
250 to 499 employees
Average
Average
Average
Average
Average
Average
27
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Employment
Earnings
Employment
Earnings
Employment
Earnings
Total Industries
5,381 $
2,871
5,553
$ 2,926
5,616
$ 3,060
Private Ownership
4,042
2,757
4,191
2,803
4,160
2,979
Total Government
1,339
3,214
1,361
3,306
1,456
3,291
Private Goods-Producing
1,659
3,489
1,691
3,382
1,631
3,555
Private Service - Providing
2,384
2,245
2,500
2,412
2,529
2,608
Number of Business by Company Size 2006'
Number
of Businesses
4
8
9
27
58
Number
of Businesses
4
8
9
27
58
'Data from ham: / /almis.labor.state.ak.us
Note: No principal employer data available from Department of Labor.
Note: No data available before 2005.
134
Number
Business Size
of Businesses
250 to 499 employees
2
100 to 249 employees
10
50 to 99 employees
9
20 to 49 employees
27
10 to 19 employees
59
Number
of Businesses
4
8
9
27
58
Number
of Businesses
4
8
9
27
58
'Data from ham: / /almis.labor.state.ak.us
Note: No principal employer data available from Department of Labor.
Note: No data available before 2005.
134
== M i M M M r= M M M s= s r M M M
KODIAK ISLAND BOROUGH
MISCELLANEOUS STATISTICAL DATA
Last Ten Fiscal Years
Building permits
Permits issued
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Land area - square miles
7,130
7,130
7,130
7,130
7,130
7,130
7,130
7,130
7,130
7,130
Miles of improved street
21.6
25.4
25.4
25.6
25.6
25.6
25.6
25.6
25.6
25.6
Building permits
Permits issued
192
210
231
220
213
223
205
Value of buildings (thousands)
15,007
11,806
12,882
11,934
14,623
17,658
12,689
Fire Protection:
1
8
7
6
150.62
168.52
163.81
Number of fire stations
2
2
2
2
2
2
2
Number of employees
I
1
1
1
1
1
I
Police Protection: none
22%
(provided by the City of Kodiak within the city limits and by the State of Alaska outside the city boundaries.)
Recreation:
Parks (number of acres)
224
224
224
223
223
223
223
Facilities:
Number of playgrounds
16
16
16
15
15
15
15
Number of swimming pools
1
1
1
1
1
1
I
Public Education:
Number of schools:
Kodiak Area Elementary
4
4
4
4
4
4
4
Kodiak Area Middle School
1
1
1
1
1
1
1
Kodiak Area High School
1
1
1
1
1
1
I
Village Schools (a)
7
8
8
7
7
7
7
Number of support personnel (b)
163
158
143.27
136.76
136.76
200.99
146.25
Number of teachers (d)
208
200
178.6
184.3
172.5
227.14
216.89
Number of students
2,798
2,810
2,774
2,821
2,750
2,677
2,678
Number of Municipal Employees
37.25
37
37
39
39
41
41
Elections:
Number of registered voters
10,389
10,100
10,421
10,085
10,101
9,671
9,282
Number voting in last election
1,972
3,861
2,521
2,914
2,181
2,599
2,181
Percent of registered voters
19%
38%
24%
29%
22%
27%
23%
Sources: Borough Departments, Kodiak Island Borough School District and City of Kodiak
(a) The majority of Village Schools are grades K -12.
(c) in "S this was changed to full time equivalents.
(b) All non - teaching employees.
(d) School district personnel figures include
staffing from the General Fund and Grants. Grant staffing
varies from year to year depending on the number of grants received.
222 190 190
11,928 12,058 33,145
2 2 2
1 1 1
223
223
223
15
15
15
1
1
l
4
4
4
1
1
1
1
1
1
8
7
6
150.62
168.52
163.81
205.63
208.52
217.78
2,718
2,593
2,689
41
43
43
9,300
9,417
9,587
2,200
2,407
2,105
24%
26%
22%
135
KODIAK ISLAND BOROUGH
Property Value, Construction, and Bank Deposits
Last Ten Fiscal Years
*Assessed value.
Sources: Borough assessing records and City of Kodiak building department and FDIC.
Property Value*
Commercial
Residential
Construction
160,921,064
416,630,645
2,420,601,099
Commercial
Residential
2,475,199,399
Fiscal
No. of
2,475,199,399
No. of
443,305,997
Deposits in
year
permits
Value
permits
Value
local banks
1999
51
6,784,879
141
8,222,313
112,363,000
2000
54
2,720,259
156
9,086,074
111,670,000
2001
33
1,379,673
198
11,501,804
117,503,000
2002
30
1,494,337
190
10,439,985
123,221,000
2003
47
2,915,740
166
11,707,269
120,352,000
2004
44
2,859,775
179
14,798,679
130,325,000
2005
47
2,097,983
158
10,590,784
133,370,000
2006
30
1,555,718
192
10,372,416
141,434,000
2007
42
3,277,292
148
8,780,900
140,915,000
2008
53
25,269,361
129
7,875,188
139,416,000
*Assessed value.
Sources: Borough assessing records and City of Kodiak building department and FDIC.
Property Value*
Commercial
Residential
Nontaxable
160,921,064
416,630,645
2,420,601,099
172,709,507
422,160,780
2,475,199,399
193,882,996
433,023,355
2,475,199,399
199,689,615
443,305,997
1,994,297,545
206,386,964
463,419,197
1
207,611,182
480,581,831
1,736,191,891
210,328,700
482,244,145
1,666,526,546
213,258,488
497,589,811
1,663,156,146
227,514,405
507,013,524
1,664,332,146
275,369,008
542,272,300
1,667,147,195
136
1
KODIAK ISLAND BOROUGH
Full -time Equivalent Borough Employees by Function/Program
Last Four Fiscal Years
Full-time Equivalent Employees
' as of June 30
2005 2006 2007 2008
Function
' General Government 22 23 24 27
Community and Economic Development 6 6 5 5
Municipal Solid Waste Collection and Disposal 8 7 7 7
' Kodiak Fisheries Research Center 2 2 2 2
Total 38 38 38 41
' Source: Borough Finance Department
The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 4 years of data.
1
1
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1 137