CAFR FY2009m
ALASK
KODIAK ISLAND BOROUGH
KODIAK, ALASKA
KODIAK ISLAND BOROUG11I
COMPREHENSIVE'
ANNUAL
FINANCIAIL
REPORT
JULY 1, 2008 - JUNE 30, 2009
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1 KODIAK ISLAND BOROUGH
Comprehensive Annual Financial Report
Year Ended June 30, 2009
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Official Issuing Report
Karleton G. Short
Finance Director
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KODIAK ISLAND BOROUGH
TABLE OF CONTENTS
June 30, 2009
INTRODUCTORY SECTION:
Page
Letter of Transmittal
14
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 -63
Required Supplementary Information:
Budgetary Comparison Schedule — General Fund
64 -65
Budgetary Comparison Schedule — Special Revenue Fund — Facilities
66
Notes to Required Supplementary Information — Budgetary Comparison Schedules
67
Additional Supplementary Information:
Budgetary Comparison Schedule — Debt Service Fund — Education and Health
68
Nonmajor Governmental Funds:
Combining Balance Sheet
69
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
70
Nonmajor Special Revenue Funds:
Combining Balance Sheet
71 -74
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KODIAK ISLAND BOROUGH I
TABLE OF CONTENTS I
June 30, 2009
(continued) I
Page
Additional Supplementary Information, continued
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
(Deficits)
75 -78
Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit) —
Budget and Actual:
Fire and Road Service Areas:
Fire:
Fire Protection Area No. 1
79
Womens Bay Fire Department
80
Kodiak Airport Fire District
81
Road:
Monashka Bay Road Service Area
82
Service Area No. 1
83
Womens Bay Road Service Area
84
Bay View Road Service Area
85
Service Area No. 2
86
Coastal Management
87
Child Care Assistance Program
88
L.E.P.C.
89
Land Sales
90
Buildings and Grounds
91
Woodland Acres Street Light Service Area
92
Trinity Islands Street Light Service Area
93
Kodiak Arts Council
94
Tourism Development
95
Mission Lake Tide Gate
96
Fern Fuller Trust
97
Trinity Islands Paving
98
Debt Service Fund:
Balance Sheet — Other
99
Schedule of Revenues, Expenditures, and Changes
in Fund Balance — Budget and Actual — Other
100
Nonmajor Capital Project Funds:
Combining Balance Sheet
101
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
102
(continued) I
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KODIAK ISLAND BOROUGH
Table of Contents
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Enterprise Funds:
Schedule of Revenues, Expenses, and Changes in Net Assets (Deficit) — Budget
and Actual:
Municipal Solid Waste Collection and Disposal 103
' Hospital Facilities 104
Kodiak Fisheries Research Center 105
911 Services Fund 106
Supplementary Schedules:
Summary of Bonded Debt Service Requirements to Maturity 107
General Obligation Bonds, 2000 Series E — Retirement Schedule 108
STATISTICAL SECTION:
Net Assets by Component — Last Five Fiscal Years 114
Changes in Net Assets — Last Five Fiscal Years 115
Fund Balances of Governmental Funds — Last Five Fiscal Years 116
General Obligation Bonds, 2000 Series F —
Retirement Schedule
109
General Revenues by Source — Last Ten Fiscal Years
General Obligation Bonds, 2004 Series C
— Retirement Schedule
110
119
General Obligation Bonds, 2004 Series D
— Retirement Schedule
111
General Obligation Bonds, 2008 Series A
— Retirement Schedule
112
Property Tax Levies and Collections — Last Ten Fiscal Years
General Obligation Bonds, 2009 Series A
— Retirement Schedule
113
STATISTICAL SECTION:
Net Assets by Component — Last Five Fiscal Years 114
Changes in Net Assets — Last Five Fiscal Years 115
Fund Balances of Governmental Funds — Last Five Fiscal Years 116
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Changes in Fund Balances of Governmental Funds — Last Six Fiscal Years
117
General Revenues by Source — Last Ten Fiscal Years
118
Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years
119
Direct and Overlapping Property Tax Rates and Contributions to the School District
120
Principal Property Tax Payers — Current Year and Ten Years Ago
121
Property Tax Levies and Collections — Last Ten Fiscal Years
122
Ratios of Net General Bonded Debt Outstanding — Last Ten Fiscal Years
123
Computation of Direct and Overlapping Debt
124
Legal Debt Margin Information — Last Five Fiscal Years
125
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
Governmental Expenditures and Transfers — Last Ten Fiscal Years
126
Ratios of Outstanding Debt by Type — Last Ten Fiscal Years
127
Demographic and Economic Statistics — Last Ten Fiscal Years
128
Average Monthly Employment & Earnings Last Three Fiscal Years
129
Miscellaneous Statistical Data — Last Ten Fiscal Years
130
Property Value, Construction and Bank Deposits — Last Ten Fiscal Years
131
Full -Time Equivalent Borough Employees by Function/Program — Last Five Fiscal Years
132
Operating Indicators by Function — Last Ten Fiscal Years
133
Capital Asset Statistics by Function/Program — Last Ten Fiscal Years
134
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INTRODUCTORY SECTION
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Kodiak Island Borough
Finance Department
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486 -9320 Fax (907) 486 -9399
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December 31, 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, 2009.
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, 2009, 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,
2009. 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
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The independent audit of the financial statements of the Borough was part of broader, State and federally
mandated "Single Audits" designed to meet the special needs of State and federal grantor agencies. The
standards governing Single Audit engagements require the independent auditor to report not only on the
fair presentation of the financial statements, but also on the audited government's internal controls and
compliance with legal requirements, with special emphasis on internal controls and legal requirements
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involving the administration of State and federal awards. These reports are available in the Borough's
separately issued Single Audit Report.
GAAP require that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of
transmittal is designed to complement MD &A and should be read in conjunction with it. The Borough's
MD &A can be found immediately following the report of the independent auditors.
Profile of the Government
The Kodiak Island Borough lies at the western border of the Gulf of Alaska, approximately 40 miles south
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of the Kenai Peninsula. Kodiak Island is the largest island in Alaska and the second largest in the United
States. About two - thirds of the Borough lies in the Kodiak archipelago with the remaining third on the
Alaska Peninsula, across the Shelikof Strait from Kodiak Island. The Shelikof Strait is only 20 miles wide
in places. The Borough encompasses 7,130 square miles, making it slightly smaller than the State of
Massachusetts and serves a population of 13,811.
The Borough was incorporated September 30, 1963, as a Second Class Borough by Chapter 146 Sessions,
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Laws of Alaska 1961, as amended. The powers granted to the Borough include area -wide powers and non
area -wide powers. Area -wide powers are health, education, assessment and collection of taxes for both the
Borough and cities within the Borough, planning and zoning, and general administrative services. Non
area -wide powers include parks and recreation, economic development, solid waste disposal, and animal
control. Service districts within the Kodiak Island Borough provide fire protection, road maintenance and
construction, and street lighting. A Mayor/Manager form of government governs the Borough. The Mayor
is elected at large while the Borough Assembly appoints the Manager. The Assembly is composed of seven
members who are elected at- large.
The Borough provides a full range of services including fire protection, the construction and maintenance
of roads and other infrastructure, community and economic development, health and sanitation, culture and
recreation and solid waste collection and disposal. The Borough also is financially accountable for a legally
separate school district which is reported separately within the Borough's financial statements. Additional
information on this legally separate entity can be found in the basic financial statements.
The annual budget serves as the foundation for the Borough's financial planning and control. All
departments of the Borough are required to submit requests for appropriation to the Borough manager. The
Borough manager uses these requests as the starting point for developing a proposed budget. The Borough
Manager then presents this proposed budget to the assembly for review by April 30. The assembly is
required to hold public hearings on the proposed budget and to adopt a final budget by no later than June
10. The appropriated budget is prepared by fund and department. The Assembly makes appropriation
transfers between funds and/or departments only after the adoption of an ordinance. Borough staff may
execute transfers between line items within a department. Amendments to the budget can occur anytime
during the fiscal year through the Borough Assembly or administrative action. Expenditures may not
legally exceed appropriations at the following levels: Capital 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
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. 64 -66 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 68. Also included in the
additional supplementary information subsection are the Education and Health debt service fund budget to
actual. For proprietary funds, this comparison is presented in the proprietary funds subsection of this
report, which starts on page 103.
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 6.2% to 9.5% over the
last five years, but the overall average has remained around 8.0 %.
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.
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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, 2008. This was the twenty -first
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
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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, 2008
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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Executive Director
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Kodiak Island Borough
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Fiscal Year 2009 '
Electorate ,
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Borough Mayor
Borough Assembly
Borough Attorney
Borough Clerk
Borough Manager
Assistant
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Clerk Deputy Clerk
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Assistant Fire
Administrative
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Arts Council
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Chief
Assistant
Director
Engineering/
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Community
Development Assessor
Finance/MIS
Facilities
s Director
Director
Director
KFRC �.
Maintenance
Environmental
Specialist i—
Associate Planner
LRP Property Appraiser —
General
Engineer
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Accountant
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MIS Programmer/
Associate Planner Appraiser
F-
Analyst
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KFRC
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Enforcement Technician
Receptionist
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Baler /Landfill
Supervisor L
Drafting Technician Assessment Clerk 1 —'
Accounting Tech
Accounts Payable
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MIS Operations
Supervisor
Project Manager/
Accounting Tech
Inspector
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Secretary III
Payroll y
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MIS Network
Administrator
Project Assistant — I'I
Baler Operator II
Childcare Assistance
Administrator
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Baler Operator I —,
Matoekence
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Baler Operator I —
Revenue
Baler Operator I
Accountant
Secretary III —
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Baler Operator 11
Cashier
Secretary III
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MAYOR AND ASSEMBLY MEMBERS
Chris Lynch
At Large, 2009
Louise Stutes
At Large, 2010
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Judy Fulp
At Large, 2011
Jerrol Friend
At Large, 2009
Jerome Setby
Mayor, 2010
Sue Jeffrey
At Large, 2011
Dave Kaplan
At Large, 2011
Pat Branson
Deputy Presiding Officer,
At large, 2010
KODIAK ISLAND BOROUGH
KODIAK, ALASKA
BOROUGH OFFICIALS
YEAR ENDED JUNE 30, 2009
MAYOR
Jerome Selby '10
ASSEMBLY
Patricia Branson '10
Judy Fulp 'I I
Jerrol Friend `09
Sue Jeffrey 'I 1
Dave Kaplan `11
Louise Stutes `10
MANAGEMENT
Chris Lynch `09
Rick Gifford .................................................... ............................... ........................Borough Manager
Karleton G. Short ............................. ............................... .........................Finance Director/Treasurer
Woody Koning .............................................
............................... Engineering and Facilities Director
Nova Javier, CMC ........................................................................
............................... Borough Clerk
Bud Cassidy ............................ ...............................
......................Community Development Director
TomAnderson .................................................................
............................... .......................Assessor
Robert Himes ........................................................
Jamin, Schmitt, St. John ............................
............................... ...........................Fire Chief
............................... 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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Co . • 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, 2009, which collectively
comprise the Borough's basic financial statements as listed in the table of contents. These financial statements
are the responsibility of the Kodiak Island Borough, Alaska's management. Our responsibility is to express
opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards issued by
the Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the 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, 2009, 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 December 31, 2009 on
our consideration of the Kodiak Island Borough, Alaska's internal control over financial reporting and our tests
of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
The management's discussion and analysis on pages 12 through 20 and the budgetary comparison information on
pages 64 through 67 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
Offices in Juneau and Soldotna A Professional Corporation
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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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December 31, 2009
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KODIAK ISLAND BOROUGH
' Management's Discussion and Analysis
June 30, 2009
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,
2009. We encourage readers to consider the information presented here in conjunction with additional
information that we have furnished in our letter of transmittal, which can be found on pages I - 4 of this report.
Financial Highlights
• The assets of the Kodiak Island Borough exceeded its liabilities at the close of FY2009 by $154,871,211.
Of this amount, $68,713, 155 (unrestricted net assets) may be used to meet the Borough's ongoing
obligations to citizens and creditors.
• In FY2009 the Borough's total net assets increased by $8,045,404.
• At the end of the current fiscal year, the Borough's governmental funds reported combined fund balances
of $59,146,415, a loss of $13,306,479 in comparison with the prior year. At the end of the FY2009,
unreserved fund balance for the general fund was $3,124,289. This was 22% of total general fund
expenditures.
• The Borough's bonds payable decreased by $2,615,000, mostly due to the payment of $2,495,056 of the
principal of bonds. The Borough also refunded one bond issue this year.
Overview of the Financial Statements
Government wide Financial Statements
The government wide financial statements are designed to provide readers with a broad overview of the Kodiak
Island Borough's finances, in a manner similar to a private sector business.
The statement of net assets presents information on all of the Kodiak Island Borough's assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as
a useful indicator of whether the financial position of the Kodiak Island Borough is improving or deteriorating.
The statement of activities presents information showing how the government's net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods.
Both of the government wide financial statements distinguish functions of the Kodiak Island Borough that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other functions
that are intended to recover all or a significant portion of their costs through user fees and charges (business -type
activities). The governmental activities of the Kodiak Island Borough include general government, public safety,
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
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2009
financially accountable. Financial information for this component unit is reported separately from the financial
information presented for the primary government itself.
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.
funds. Information is in
The Kodiak Island Borough maintains 27 individual governmental presented separately
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, the Education and Health debt
service fund and the School Bond Capital Projects 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.
13
1
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2009
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.
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 -63 of this report.
Other Information — In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information including budgetary comparison schedules for the General
Fund and the Facilities special revenue fund. Required supplementary information can be found on pages 64-67
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 $154,871,211 at the close of FY2009, the most
recent fiscal year. The net assets of the component unit were $3,984,071 at the close of FY2009.
The largest portion of the Kodiak Island Borough's net assets ($86,158,056 or 56 %) 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.
Governmental Business -type
Activities Activities Total
2009 2008 2009 2008 2009 2008
Current and other assets $ 61,772,451 71,664,709 9,535,773 9,919,218 71,308,224 81,583,927
Capital assets 93,135,695 79,157,076 39,999,843 36,718,028 133,135,538 115,875,104
Total assets $ 154,908,146 150,821,785 49,535,616 46,637,246 204,443,762 197,459,031
Long-term liabilities $ 32,600,929 36,601,545 6,522,192 8,307,163 39,123,12I 44,908,708
Other liabilities 2,632,045 (761,333) 7,817,385 6,485,849 10,449,430 5,724,516
Total liabilities $ 35,232,974 35,840,212 14,339,577 14,793,012 49,572,551 50,633,224
Net assets:
Invested in capital assets,
net of related debt $ 49,534,766 43,951,753 36,623,290 34,706,597 86,158,056 78,658,350
Unrestricted 70,140,406 71,029,820 (1,427,251) (2,862,363) 68,713,155 68,167,457
Total net assets $ 119,675,172 I 14,981,573 35,196,039 31,844,234 154,871,211 146,825,807
For more detailed information see the statement of net assets on page 21.
The remaining balance of unrestricted net assets, $68,713,155, may be used to meet the Borough's ongoing
' obligations to citizens and creditors.
1 14
1
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2009
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
2009 2008 2009 2008 2009 2008
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 sales
Severance taxes
Other
Investment earnings
Total revenues
$ 742,527 620,681 8,830,744 6,303,688
2,543,254 1,911,246 - -
2,331,253 1,926,465 - -
9,573,271 6,924,369
2,543,254 1,911,246
2,331,253 1,926,465
10,592,258
10,118,601
-
-
10,592,258
10,118,601
4,214,617
3,144,751
-
-
4,214,617
3,144,751
26,369
2,944
-
-
26,369
2,944
1,311,188
1,436,210
-
-
1,311,188
1,436,210
226,586
377,605
50
1,920
226,636
379,525
2,082,615
3,912,145
273,973
434,164
2,356,588
4,346,309
24,070,667
23,450,648
9,104,767
6,739,772
33,175,434
30,190,420
3,723,964
4,226,758
-
-
3,723,964
4,226,758
579,710
509,697
-
-
579,710
509,697
14,988
13,841
-
-
14,988
13,841
908,501
1,105,156
-
-
908,501
1,105,156
371,673
449,792
-
-
371,673
449,792
248,571
183,747
-
-
248,571
183,747
398,219
378,661
-
-
398,219
378,661
12,354,129
11,524,160
-
-
12,354,129
11,524,160
1,408,045
1,270,423
-
-
1,408,045
1,270,423
-
-
3,852,158
4,628,826
3,852,158
4,628,826
-
-
1,095,535
1,124,650
1,095,535
1,124,650
-
-
1,960,404
2,027,432
1,960,404
2,027,432
-
-
43,043
107,980
43,043
107,980
20,007,800
19,662,235
6,951,140
7,888,888
26,958,940
27,551,123
4,062,867
3,788,413
2,153,627
(1,149,116)
6,216,494
2,639,297
(765,490)
127,050
765,490
(127,050)
-
-
1,396,222
-
432,688
-
1,828,910
-
630,732
127,050
1,198,178
(127,050)
1,828,910
-
4,693,599
3,915,463
3,351,805
(1,276,166)
8,045,404
2,639,297
114,981,573
111,066,110
31,844,234
33,120,400
146,825,807
144,186,510
$ 119,675,172
114,981,573
35,196,039
31,844,234
154,871,211
146,825,807
Expenses:
General government
Public safety
Emergency preparedness
Community and economic development
Health and sanitation department
Education, culture, and recreation
Service district maintenance
Primary and secondary education
Interest on long -term debt
Municipal solid waste collection and disposal
Hospital facilities
Kodiak fisheries research center
911 services
Total expenses
Change in net assets before
transfers and extraordinary item
Transfers
Extraordinary item
Net transfers and extraordinary item
Change in net assets
Net assets, beginning ofyear
Net assets, end ofyear
Governmental activities increased the Kodiak Island Borough's net assets by $4,693,599. The major differences
in revenues were an increase of $473,657 in property taxes, $1,069,866 in grants, and a decrease in investment
earnings of $1,829,530. There were some major changes in expenses including an increase of $829,969 in
primary and secondary education and decreases in community and economic development of $196,655 and
general government of $502,794.
1
1
L l L
15 1
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2009
Business -type activities increased the Kodiak Island Borough's net assets by $3,351,805. The major differences
were a $2,527,056 increase in charges for services, a $258,795 decrease in contracted services, a $470,509
decreased in landfill closure and post- closure costs, in increase in transfers in of $692,540 and an extraordinary
item of $432,688. The proprietary funds had operating income of $2,153,627 before transfers and the
extraordinary item.
Expenses and Program Revenues
Governmental Activities
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
5 e w
c c1 5 0 0� o c of
oe`c Ike Qa�aa�e Ja\oQ�e
e o
: `�
ca d Q A
�
Q c \o 06
o � o` a�`c `ea `o 0�0 0
Co cue o e
X �J
F � o �
R o
�a
Sa o
■ Revenues ■ Expenditures
I
For more detailed information see the statement of activities on page 22.
Financial Analysis of the Government's Funds
As noted earlier, the Kodiak Island Borough uses fund accounting to ensure and demonstrate compliance with
finance- related legal requirements.
16
1
ISLAND BOROUGH
KODIAK
Management's Discussion and Analysis
,
June 30, 2009
Governmental Funds — The focus of the Kodiak Island Borough's governmental funds is to provide information
on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
Kodiak Island Borough's financing requirements. In particular, unreserved fund balance may serve as a useful
measure of a government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Kodiak Island Borough's governmental funds reported combined
ending fund balances of $59,146,415, a decrease of $13,306,479 in comparison to the beginning of the year.
$52,939,509 of this total amount constitutes unreserved fund balance, of which $1,946,249 is designated for
subsequent year expenditures and $50,993,260 is undesignated. The remaining $6,206,906 of fund balance is
reserved for long -term interfund borrowings.
follows:
,
The main reasons for this decrease are as
• $16,134,170 was spent on capital projects that were mainly financed by bond issues sold in previous
years.
• Federal payments in lieu of taxes exceeded projections by $475,015.
• Expenditures in the General Fund were lower than projections by $1,038,154.
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 $3,124,289 with $1,261,581 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 21% of total general fund expenditures.
The fund balance of the Kodiak Island Borough's General fund decreased by $106,190 during the current fiscal
year. The key factor leading to this decrease was a budgeted use of unreserved fund balance to balance the
FY2009 budget.
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 $4,628,072, the Hospital
Facilities fund amounted to $20,223,741, the Kodiak Fisheries Research Center fund amounted to $10,344,226
and the 911 Services fund amounted to 0.
The total increase in net assets for the Municipal Solid Waste Collection and Disposal fund was $273,396. The
total increase in net assets for the Hospital Facilities fund was $3,249,753. The total decrease in net assets for the
Kodiak Fisheries Research Center was $180,993. The total increase in net assets for the 911 Services fund was
$9,649. 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.
,
17 1
G
I
1
1
1
1
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2009
2009 Program Revenue vs Expense
Proprietary Operations
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 Hospital Facilities Kodiak Fisheries
Waste ResearchCenter
■ Program Revenue ■ Program Expense
911 Service
General Fund Budgetary Highlights
Differences between the original budget and final amended budget can be briefly summarized as follows:
• The revenue budget for real property tax was increased by $71,980.
• The revenue budget for state raw fish tax was increased by $297,000.
• The revenue budget for federal payment in lieu of taxes was increased by $500,000.
• The revenue budget for federal payment in lieu of taxes was increased by $500,000.
• The revenue budget for fish severance tax was increased by $200,000.
Differences between the final amended budget and actual can be summarized as follows:
• Penalty and interest of taxes was $67,529 less than budgeted. This was due to collection efforts in
previous years.
• Federal Payments in lieu of taxes was $475,015 over budget. This was due to the federal government fully
funding this program, including retroactive payments.
• Severance taxes were $177,025 under budget. This was due to lower than anticipated salmon returns.
• The Borough Assembly department came in $25,312 under budget. This was due to travel and per diem
coming in under budget.
18
1
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2009
• The Borough Attorney's department came in $63,415 under budget. This was due to less litigation than '
expected.
• The Finance department was $12,364 under budget. This was mainly due to vacant positions.
• The Management Information Systems department came in $114,386 under budget. This was due to salary
costs and benefits and maintenance agreements coming in under budget.
• The Community Development department came in $67,260 under budget. This was due to personnel
services and employee benefits coming in under budget.
• The Building Inspectors department came in $63,762 under budget. This was due to more construction
within the city limits of Kodiak rather than outside the city,
• Economic Development came in $31,500 under budget. This was mainly due to contracted services
coming in under budget.
• General Administration was $50,835 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, 2009, amounted to $133,135,538 (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 $17,260,434 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.
19
Governmental
Business -type
activities
activities
'total
200 8
2 8
2009
2008
Artwork
$ — —
16,091 16,091
16,091
16,091
Land
23,072,753 23,072,753
1,661,499 1,661,499
24,734,252
24,734,252
Constriction work -in- progress
30,677,298 14,543,228
6,252,703 1,222,086
36,930,001
15,765,314
Buildings and improvements
35,615,547 37,895,046
27,233,162 28,653,540
62,848,709
66,548,586
Improvements other than buildings
1,023,261 609,425
2,518,425 2,640,513
3,541,686
3,249,938
Equipment
1,195,235 1,340,955
1,138,732 1,297,948
2,333,967
2,638,903
Infrastructure
1,551,601 1,695,669
— —
1,551,601
1,695,669
Unclassified plant in service
— —
1,179,231 1,226,351
1,179,231
1,226,351
$ 93,135,695 7 9,157,076
39,999,843 36,718,028
133,]35,538
115,875,104
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
i June 30, 2009
Long -term Debt — At the end of the current fiscal year, the Kodiak Island Borough had total bonded debt
outstanding of $32,245,000. 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.
The following table displays the long -term debt for the current year.
The Kodiak Island Borough's total debt decreased $2,350,906 during the current fiscal year. This decrease was
due to the Kodiak Island Borough paying $2,495,056 of principal of general obligation bonds and refunding the
1998 bond issue.
This year, Fitch Investors Service reviewed our general obligation bond rating. They increased our rating from
an A- to an A- with a positive outlook. 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 49 -56 of
this report.
Economic Factors and Next Year's Budgets and Rates
• At June 30, 2009, the unemployment rate for the Kodiak Island Borough was 8.2 %, which is 1.1 % lower
than last year's rate of 9.3 %. The average unemployment rate for the last 10 years has been 9.1 %.
• 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
FY2009. 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.
20
Governmental
Business -type
activities
activities
Total
2009 2008
2009 2008
2009
2008
General obligation bonds, including premium $
32,534,424 34,957,269
— —
32,534,424
34,957,269
ADEC loans
Compensated absences
66,505 72,028
234,236 176,026
= —
66,505
234,236
72,028
176,026
Landfill post closure care costs
4,390,364 4,041,730
4,390,364
4,041,730
Long term interfund borrowings
— —
6,544,725 6,969,950
6,544,725
6,969,950
Notes payable
— —
1,864,503 1,768,660
1,864,503
1,768,660
$
32,835,165 35,205,323
12,799,592 12,780,340
45,634,757
47,985,663
The Kodiak Island Borough's total debt decreased $2,350,906 during the current fiscal year. This decrease was
due to the Kodiak Island Borough paying $2,495,056 of principal of general obligation bonds and refunding the
1998 bond issue.
This year, Fitch Investors Service reviewed our general obligation bond rating. They increased our rating from
an A- to an A- with a positive outlook. 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 49 -56 of
this report.
Economic Factors and Next Year's Budgets and Rates
• At June 30, 2009, the unemployment rate for the Kodiak Island Borough was 8.2 %, which is 1.1 % lower
than last year's rate of 9.3 %. The average unemployment rate for the last 10 years has been 9.1 %.
• 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
FY2009. 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.
20
1 21
KODIAK ISLAND BOROUGH
Statement of Net Assets
June 30,
2009
(With summarized financial information for June 30, 2008)
Component
Primary government
unit
Total reporting entity
Governmental
Business -type
School
Assets
activities
activities
Total
district
2009
2008
Equity in central treasury
S 60,424,187
8,773,064
69,197,251
52,614
69,249,865
78,918,372
Due from primary
government
5,766,156
5,766,156
3,380,508
Receivables:
State of Alaska
510,588
100,000
610,588
-
610,588
875,826
Federal Government
62,034
-
62,034
62,034
373,520
Property taxes, net of
allowance of $15,828
140,730
140,730
-
140,730
112,109
Severance taxes
280,334
280,334
-
280,334
352,927
Deferred charges
101,380
-
101,380
-
101,380
34,929
Inventories
-
277,007
277,007
404,418
681,425
724,013
Prepaid expenses
17,567
17,567
5,526
Land sales contracts
receivable
214,047
-
214,047
-
214,047
230,778
Accounts and other
receivables, net
39,151
385,702
424,853
1,394,430
1,819,283
2,269,392
Capital assets:
Non - depreciable
53,750,051
7,930,293
61,680,344
-
61,680,344
40,515,657
Depreciable, net
39,385,644
32,069,550
71,455,194
329,703
71,784,897
75,649,312
Total
$ 154,908,146
49,535,616
204,443,762
7,964,888
212,408,650
203,442,869
Liabilities and Net Assets
Liabilities:
Accounts payable
$ 1,946,855
684,517
2,631,372
365,883
2,997,255
3,223,951
Retainages payable
530,153
530,153
530,153
208,818
Accrued compensation
and related liabilities
402,000
78,086
480,086
3,067,011
3,547,097
3,193,317
Other accrued liabilities
261,820
481,885
743,705
-
743,705
618,531
Customer deposits
700
-
700
-
700
800
Unearned revenues
361,836
202,747
564,583
32,361
596,944
243,461
Due to component units
5,766,156
-
5,766,156
-
5,766,156
3,386,090
Internal balances
(6,637,475)
6,637,475
-
-
-
-
Noncurrent liabilities:
Due within one year
2,951,842
-
2,951,842
500,910
3,452,752
3,383,283
Due in more than
one year
29,649,087
1,864,503
31,513,590
14,652
31,528,242
34,246,354
Landfill closure costs
-
4,390,364
4,390,364
-
4,390,364
4,041,730
Net Pension and OPEB
obligation
-
-
-
-
-
6,186,447
Total liabilities
35,232,974
14,339,577
49,572,551
3,980,817
53,553,368
58,732,782
Net assets-
Invested in capital assets,
net of related debt
49,534,766
36,623,290
86,158,056
329,703
86,487,759
78,948,215
Unrestricted
70,140,406
(1,427,251)
68,713,155
3,654,368
72,367,523
65,761,872
Net assets
119,675,172
35,196,039
154,871,211
3,984,071
158,855,282
144,710,087
Total
$ 154,908,146
49,535,616
204,443,762
7,964,888
212,408,650
203,442,869
See accompanying notes to financial statements.
1 21
KODIAK ISLAND BOROUGH
Statement of Activities
Year ended June 30, 2009
(With summarized financial information for the year ended June 30, 2008)
See accompanying notes to financial statements.
22
M= r■i■ M= r M M r M M M r= r r= r r
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
2009
2008
Primary government:
Governmental activities:
General government
$ 3,723,964
705,166
203,696
-
(2,815,102)
-
(2.815.102)
-
(2,815,102)
(3,683,917)
Public safety
579,710
12.361
20,180
-
(547,169)
(547,169)
(547,169)
(509,697)
Emergency preparedness
14,988
-
-
-
(14,988)
-
(14,988)
-
(14,988)
(13.841)
Community and economic development
908,501
-
71,824
2,331,253
1,494,576
-
1,494,576
-
1,494,576
(25,501)
Health and sanitation department
371,673
-
101,048
-
(270,625)
-
(270,625)
-
(270,625)
(342,123)
Education, culture and recreation
248,571
-
-
-
(248.571)
-
(248.571)
-
(248,571)
(183.747)
Service district maintenance
398,219
25.000
-
-
(373,219)
-
(373,219)
-
(373,219)
(199,772)
Primary and secondary education
12,354,129
-
-
-
(12.354,129)
-
(12,354,129)
-
(12,354,129)
(10,776.572)
Interest on long -term debt
1,408,045
-
2,146,506
-
738,461
-
738,461
-
738,461
531,327
Total governmental activities
20,007,800
742,527
2,543,254
2,331,253
(14,390,766)
-
(14,390.766)
-
(14,390,766)
(15,203,843)
Business -type activities:
Municipal solid waste collection and
disposal
3,852,158
3,603,995
-
-
-
(248,163)
(248,163)
-
(248,163)
(717,055)
Hospital facilities
1,095,535
3,575.835
-
-
-
2,480,300
2,480,300
-
2,480,300
(404,650)
Kodiak fisheries research center
1,960,404
1,598,260
-
-
-
(362,144)
(362,144)
-
(362,144)
(412,900)
911 services
43,043
52,654
9,611
9,611
9,611
(53,055)
Total business -type activities
6,951,140
8,830,744
-
1,879,604
1,879,604
-
1,879,604
(1,587,660)
Total primary government
26,958,940
9,573,271
2,543,254
2,331,253
(14,390,766)
1,879,604
(12,511,162)
-
(12,511,162)
(16,791,503)
Component unit -
School district
$ 44,256,553
256.514
4,856,328
94,182
(39,049,529)
(39,049,529)
(44,121,826)
General revenues:
Property taxes
10,592,258
-
10,592,258
-
10,592,258
10,118,601
Grants and entitlements not restricted to specific
programs
4,214,617
-
4,214,617
30,444.075
34,658.692
35,021,073
Land sales
26,369
-
26,369
-
26,369
2,944
Severance taxes
1,311,188
-
1,311,188
-
1,311,188
1,436,210
Support from primary government
-
-
-
10.243,618
10,243,618
9,420,412
Other
226,586
50
226,636
104,090
330,726
627.056
Investment earnings
2,082,615
273,973
2,356,588
-
2,356,588
4,346,309
Transfers
(765,490)
765,490
-
-
-
-
Extraordinary item
1,396,222
432,688
1,828,910
4,357,537
6.186,447
Total general revenues, transfers and extraordinary item
19,084,365
1,472,201
20,556,566
45,149,320
65,705,886
60,972,605
Change in net assets
4,693,599
3,351,805
8,045,404
6,099.791
14,145,195
59,276
Net assets, at beginning of year
114,981,573
31,844,234
146,825,807
(2,115,720)
144,710,087
144,650,811
Net assets, at end of year
$ 119,675,172
35,196,039
154,871,211
3,984,071
158,855,282
144,710,087
See accompanying notes to financial statements.
22
M= r■i■ M= r M M r M M M r= r r= r r
1
1
1
fl
1
1
�
1
KODIAK ISLAND BOROUGH
Balance Sheet
Governmental Funds
June 30, 2009
(With summarized financial information for June 30, 2008)
See accompanying notes to financial statements.
23
School Bond
Facilities
Education and
Capital
Other
Special
Health Debt
Projects
Governmental
Totals
Assets
General
Revenue Fund
Service Fund
Fund
Funds
Assets:
Cash and investments $
8,406,409
33,013,122
4,735
13,779,159
5.220,762
60,424,187
69,743,583
Receivables:
State of Alaska
80,121
-
376,403
-
54,064
510.588
775,826
Federal Government
-
-
-
-
62,034
62,034
373,520
Property taxes, net of
allowance of$15,828
127,858
-
-
12,872
140,730
112,109
Severance taxes
280,334
-
-
-
280,334
352,927
Land sales contracts
-
-
-
-
41,598
41,598
54,137
Accounts and other
receivables, net
6,069
33,082
39,151
41,037
Due from other funds
600,150
565,734
419,000
1,584,884
1,103,459
Land sales contracts, due after one year
-
-
-
-
172,449
172,449
176,641
Advances to other funds
-
6,206,906
-
-
-
6,206,906
6,679,890
Total $
9,500,941
39,785,762
381,138
13,779,159
6.015,861
69,462,861
79,413,129
Liabilities and Fund Balances
Liabilities:
Accounts payable
319,265
-
200
887,713
739,677
1,946,855
2,049,439
Retainages payable
524,776
5,377
530,153
208.818
Accrued compensation
and related liabilities
167,764
167,764
176,620
Customer deposits
-
-
-
-
700
700
800
Due to component unit
5,766,156
-
-
-
-
5,766.156
3.386,090
Due to other funds
-
-
375,000
600,000
179,316
1.154,316
714,349
Deferred revenues
123.467
92,750
-
-
534,285
750,502
424,119
Total liabilities
6,376,652
92,750
375,200
2,012,489
1,459,355
10,316,446
6,960,235
Fund balances:
Reserved:
Long -term interfund
borrowings
-
6,206,906
-
-
6,206,906
6,969,951
Unreserved:
General fund:
Designated for subsequent
year expenditures
1,261,581
1,261,581
1,341,798
Undesignated
1,862,708
-
-
1,862,708
1,888,681
Special revenue funds:
Designated for subsequent
year expenditures
-
297,000
-
-
387,668
684,668
150,845
Undesignated
-
33,189.106
-
3.418,997
36,608.103
36,136,053
Debt service funds:
Undesignated
-
-
5,938
5,938
159,788
Capital projects funds:
Undesignated
-
11,766,670
749,841
12,516,511
25,805,778
Total fund balances
3,124,289
39,693,012
5,938
11,766,670
4.556,506
59,146,415
72.452,894
Total $
9,500,941
39,785,762
381,138
13,779,159
6,015,861
69,462,861
79,413,129
See accompanying notes to financial statements.
23
KODIAK ISLAND BOROUGH
Reconciliation of Net Assets Between the
Government -wide and Fund Financial Statements
Year ended June 30, 2009
Amount reported as fund balance on the governmental funds balance sheet
Amounts reported for governmental activities in the statement of net
assets are different because:
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
Long -term receivables, delinquent property taxes and loans are
not available to pay for current -period expenditures and,
therefore, are deferred in the funds:
Property taxes
Interest receivable
Notes receivable - land sales
Deferred charges
Long -term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported
in the funds:
General obligation bonds payable
Bond premium
ADEC loans
Accrued interest expense
Compensated absences
Net assets of governmental activities
See accompanying notes to financial statements.
$ 59,146,415 ,
93,135,695
$ 123,467
92,750
172,449
101,381
(32,245,000)
(289,424)
(66,505)
(261,820)
(234,236) (33,096,985)
$ 119,675,172
1
490,047
1
1
fl
7
L
Ll
7
L
24
f�
I
Revenues:
Property taxes
Intergovernmental:
State sources
Federal sources
Land sale proceeds
Severance taxes
Licenses, permits, fees, and
other local revenues
investment income
Other
1
1
u
0
Total revenues
Expenditures:
Current:
Generalgovenunent
Public Safety
Community and
economic development
Emergency preparedness
Health and sanitation
department
Education, culture
and recreation
Service district maintenance
Primary and secondary education
Capital outlay:
Schools
General
Debt service:
Principal
Interest
Debt issuance costs
Total expenditures
Excess of revenues over
(under) expenditures
Other financing sources (uses):
Bonds issued
Refunding bonds issued
Payment to refunded bond escrom agent
Transfers in
Transfers out
Net other financing
sources (uses)
Change in fund balances
Fund balances (deficit), at beginning of year
Fund balances. at end of the year
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Statement of Revenues. Expenditures,
and Changes in Fund Balances (Deficit)
Governmental Funds
Year ended June 30, 2009
(With sutmnarized financial information for the year ended June 30, 2008)
25
School Bond
Facilities
Education and
Capital
Other
Special
Health Debt
Projects
Governmental
Totals
--- Tro v
General
Revenue Fund
Service Fund
Fund
Funds
2008
S 9.553.253
-
-
-
1,012,432
10.565,685
10,254,477
2,421.188
-
2,146,506
-
1,399,114
5.966,808
4.428,472
2.040.436
1,081,880
3,122,316
2,553,990
-
-
-
-
30,561
30,561
19,458
1.311.188
-
-
1,311,188
1,436,210
65.417
-
-
-
677,110
742,527
658,381
292,825
1,337.694
8,718
308,942
140,736
2,088,915
3.918,008
131,944
-
198,235
-
88,562
418,741
353,850
15,816.251
1.337.694
2.353,459
308,942
4.430,395
24.246.741
23.622,846
3.194.334
-
242
872,448
4,067,024
3,818,544
84,125
-
-
-
376,701
460,826
385,529
825,120
-
-
-
83,381
908,501
923,203
12,488
-
-
-
12,488
5,713
232,699
-
-
-
101,048
333,747
387,053
248,571
-
-
-
248,571
183,747
398,219
398,219
374,320
9,956.618
-
-
-
9,956,618
9,123,412
-
-
-
12,848,495
2,008.569
14,857,064
7,029,628
-
-
-
-
1,277,106
1,277,106
887,189
-
-
2,495,056
-
-
2,495,056
2.205,441
-
-
1,571.295
-
7,113
1,578,408
1,263,176
-
68,635
-
68,635
14,553.955
-
4
12,848,495
5,124,585
36.662,263
26,586,955
1,262.296
1,337,694
(1,781,769)
(12,539,553)
(694.190)
(12,415,522)
(2,964,109)
-
-
8,000,000
-
-
6,740,000
-
-
6,740.000
-
-
-
(6,865,467)
-
-
(6.865,467)
-
-
-
1,923,036
933,009
3.288,256
6,144,301
2,966,610
(1,368,486)
(1.514,540)
-
(2,843,751)
(1,183,014)
(6,909391)
(2.839,560)
(1,368.486)
(1.514,540)
1,797,569
(1.910,742)
2.105,242
(890,957)
8,127,050
(106,190)
(176,846)
15,800
(14.450,295)
1.411.052
(13,306479)
5,162,941
3.230,479
39.869.858
(9,862)
26,216,965
3,145,454
72.452,894
67,289.953
S 3.124,289
39.693.012
5,938
11,766,670
4,556,506
59.146,415
72,452,894
25
I
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, 2009
Net change in fund balances — total governmental funds $ (13,306,479)
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
Certain revenues in the statement of activities do not provide current
financial resources and are deferred in the funds:
Deferred property tax
Interest income
Land sale proceeds
Certain revenues that were earned in a prior year provide
current financial resources:
Accrued property tax
Accrued interest income
Land sale contracts
The issuance of long -term debt provides current financial
resources to governmental funds, while the repayment of the
principal of long -tern 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:
Bond issuance costs
Interest expenditures applied to accrued interest
Issuance of long term debt
Premium on bonds
Principal repayments
Amortized debt issuance costs
Bond premium amortization
The extraordinary gain reported in the statement of activities
as a result of the change in PERS plan did not use or provide
current financial resources and, therefore, is not reported in
governmental funds:
Net decrease in pension and OPEB obligations
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:
Compensated absences, net change
Change in net assets of governmental activities
See accompanying notes to financial statements.
$ 16,851,086
(2,872,467) 13,978,619
123,467
92,750
172,449 388,666
(96,894)
(99,050)
(176,641) (372,585)
68,635
172,546
(6,740,000)
(198,235)
9,360,523
(2,183)
6,080 2,667,366
I'
L
1,396,222 1
(58,210)
$ 4,693,599
J
26
1
1
KODIAK ISLAND BOROUGH
Balance Sheet
Proprietary Funds - Business -type Activities - Enterprise Funds
June 30, 2009
(With summarized financial information for June 30, 2008)
'
Municipal
Solid Waste
Kodiak
Fisheries
Other
Nonmajor
Collection and
Hospital
Research
Enterprise
Totals
Assets
Disposal
Facilities
Center
Fund
2WF
2008
Current assets:
Equity in central treasury
S 5,397,764
12,466
3,331,845
30,989
8,773,064
9,006,752
Accrued interest receivable
-
-
-
8,632
8,632
8,887
Customer receivables
259,065
117,939
66
-
377,070
526,572
Accounts receivable - State of Alaska
100,000
_
_
_
100,000
100,000
'
Due from other funds
400,000
400,000
Total current assets
6,156,829
130,405
3,331,911
39,621
9,658,766
9,642,211
Inventories
-
277,007
-
-
277,007
277,007
'
Capital assets:
-
7,930,293
2,899,676
Non -depreciable
2,275,656
5,654,637
-
Depreciable, net
3,327,363
16,078,154
12,664,033
-
32,069,550
33,818,352
Total capital assets
5,603,019
21,732,791
12,664,033
-
39,999,843
36,718,028
Total noncurrent assets
5,603,019
22,009,798
12,664,033
-
40,276,850
36,995,035
Total
S 11,759,848
22,140,203
15,995,944
39,621
49,935,616
46,637,246
'
Liabilities and Net Assets
Current liabilities:
Accounts payable
$ 344,941
271,737
28,218
39,621
684,517
810,603
Accrued compensation and
related liabilities
50,083
-
28,003
-
78,086
60,942
Other accrued liabilities
481,885
-
-
-
481,885
426,936
Current portion of advances
from other funds
-
67,861
385,000
452,861
425,225
Due to other nds
fu
-
400,000
92,750
-
492,750
99,050
Deferred revenues
-
-
202,747
-
202,747
182,453
Total current liabilities
876,909
739,598
736,718
39,621
2,392,846
2,005,209
Noncurrent liabilities:
Notes payable
1,864,503
-
-
-
1,864,503
1,768,660
Advances from other funds
-
1,176,864
4,915,000
6,091,864
6,544,725
Net pension and OPEB obligation
_
432,688
Accrual for landfill closure
and postclosure
costs
4,390,364
-
-
-
4,390,364
4,041,730
'
Total noncurrent liabilities
6,254,867
1,176,864
4,915,000
-
12,346,731
12,787,803
Total liabilities
7,131,776
1,916,462
5,651,718
39,621
14,739,577
14,793,012
Net Assets:
Invested in capital assets,
net of related debt
3,471,191
20,488,066
12,664,033
-
36,623,290
34,949,368
Unrestricted
1,156,881
(264,325)
(2,319,807)
-
(1,427,251)
(3,105,134)
Total Net Assets
4,628,072
20,223,741
10,344,226
-
35,196,039
31,844,234
Total
S 11,759,848
22,140,203
15,995,944
39,621
49,935,616
46,637,246
See accompanying notes to financial statements.
'
n
27
I
See accompanying notes to financial statements. I
28
KODIAK ISLAND BOROUGH
Statement of Revenues, Expenses,
and
Changes in Net Assets (Deficit)
Proprietary Funds
- Business -type Activities - Enterprise Funds
Year ended June 30, 2009
'
(With summarized financial information for the year ended June 30, 2008)
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Totals
Disposal
Facilities
Center
Fund
2008
Operating revenues:
'
Solid waste collection
S 2,559,903
-
-
-
2,559,903
2,839,830
Solid waste disposal
1,044,092
-
-
-
1,044,092
1,071,941
Charges for services /customer charges
-
-
-
52,654
52,654
54,925
Lease income
-
720,000
1,598,260
-
2,318,260
2,336,992
Other
-
-
50
-
50
1,920
Total operating revenues
3,603,995
720,000
1,598,310
52,654
5,974,959
6,305,608
Operating expenses:
Personnel services
794,253
5,386
321,089
3,000
1,123,728
1,282,229
'
Solid waste collection
1,534,673
-
-
-
1,534,673
1,257,731
Refuse disposal
276,878
-
276,878
346,396
Contracted services
187,969
-
-
-
187,969
446,764
Maintenance and repairs
34,483
-
-
-
34,483
83,785
Landfill closure and postclosure costs
348,634
-
-
-
348,634
819,143
'
Depreciation
270,153
929,555
713,144
-
1,912,852
1,981,209
General and administration
227,757
842
479,706
422
708,727
728,541
Miscellaneous
-
-
91,641
-
91,641
73,798
Telephone services
-
-
-
39,621
39,621
111,403
Recycling services
233,768
-
-
-
233,768
231,085
Contributions
10,876
-
-
-
10,876
13,315
Total operating expenses
3,919,444
935,783
1,605,580
43,043
6,503,850
7,375,399
Operating income (loss)
(315,449)
(215,783)
(7,270)
9,611
(528,891)
(1,069,791)
'
Nonoperating revenues (expenses):
Contribution to Providence Hospital
-
(I08,000)
-
-
(108,000)
(57,141)
State of Alaska on- behalf payment
67,286
-
22,476
-
89,762
CHC reimbursements
-
2,855,835
-
-
2,855,835
-
Investment income
178,651
10,413
84,871
38
273,973
434,164
Interest expense
-
(51,752)
(377,300)
-
(429,052)
(456,348)
Income (loss) before transfers
(69,512)
2,490,713
(277,223)
9,649
2,153,627
(1,149,116)
Transfers in
6,450
759,040
-
-
765,490
72,950
Transfers out
-
-
-
(200,00
Net other financing sources (uses)
Income (loss) before
extraordinary item
(63,062)
3,249,753
(277,223)
9,649
2,919,117
(1,276,166)
Extraordinary item
336,458
-
96,230
-
432,688
-
Change in
273,396
3,249,753
9,649
3,351,805
'
net assets
(180,993)
(1,276,166)
Net assets (deficit), at beginning of year
4,354,676
16,973,988
10,525,219
(9,649)
31,844,234
33,120,400
Net assets, end of year
S 4,628,072
20,223,741
10,344,226
-
35,196,039
31,844,234
See accompanying notes to financial statements. I
28
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KODIAK ISLAND BOROUGH
Statement of Cash Flows
Proprietary Funds - Business -type Activities - Enterprise Funds
Year ended June 30, 2009
(With summarized financial information for the year ended June 30, 2008)
29
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Totals
Disposal
Facilities
Center
Fund
2009
2
Cash flows from operating activities:
Cash received from customers
$ 3,801,090
646,161
1,644,849
52,654
6,144,754
6,279,952
Payments to suppliers
(2,466,552)
(100,264)
(617,517)
(29,992)
(3,214,325)
(2,887,069)
Payments to employees
(781,682)
(5,386)
(316,516)
(3,000)
(1,106,584)
(951,877)
Net cash provided by
operating activities
552,856
540,511
710,816
19,662
1,823,845
2,462,675
Cash flows from noncapital financing activities:
Contribution to Providence Hospital
-
(108,000)
-
-
(108,000)
(57,141)
State of Alaska on- behalf payment
67,286
-
22,476
-
89,762
-
Contributions from CHC
-
2,855,835
-
-
2,855,835
-
Internal activity - payments to /from other funds
(400,000)
400,000
(6,300)
-
(6,300)
21,669
Transfers in
6,450
759,040
-
-
765,490
72,950
Transfers out
-
-
-
-
-
(200,000)
Net cash provided (used) by
noncapital financing activities
(326,264)
3,906,875
16,176
-
3,596,787
(184,191)
Cash flows from capital and related
financing activities:
Acquisition and construction ofcapital assets
(86,421)
(4,944,196)
(55,151)
-
(5,085,768)
(645,612)
Crain on disposal ofassets
(108,899)
-
(108,899)
-
Interest paid on notes payable, capital leases,
and interfund borrowings
-
(51,752)
(377,300)
-
(429,052)
(456,348)
Principal payments on long -term
interfund borrowing
-
(65,226)
(360,000)
-
(425,226)
(425,225)
Proceeds from issuance of notes payable
120,397
-
-
-
120,397
156,357
Net cash provided (used) by capital and
related financing activities
(74,923)
(5,061,174)
(792,451)
-
(5,928,548)
(1,370,828)
Cash flows from investing activities:
Interest and dividends on investments
178,651
10,413
84,871
293
274,228
434,597
Net change in cash and
cash equivalents
330,320
(603,375)
19,412
19,955
(233,688)
1,342,253
Cash and equivalents, at beginning ofyear
5,067,444
615,841
3,312,433
11,034
9,006,752
7,664,499
Cash and equivalents, at the end ofyear
$ 5,397,764
12,466
3,331,845
30,989
8,773,064
9,006,752
(continued)
29
KODIAK ISLAND BOROUGH
Statement of Cash Flows
Proprietary Funds – Business -type Activities – Enterprise Funds, Continued
Year ended June 30, 2009
( With summarized financial information for the year ended June 30, 2008)
See accompanying notes to financial statements.
30
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
)enterprise
Totals
Disposal
Facilities
Center
Fund
2
Reconciliation of operating income (loss) to net
cash provided by operating activities:
Operating income (loss)
S (315449)
(215,783)
(7,270)
9,611
(528,891)
(1,069,791)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
270,153
929,555
713,144
—
1,912,852
1,981,209
Changes in assets and liabilities that
provided (used) cash:
(Increase) decrease in assets:
Customer receivables
197,095
(73,839)
26,246
—
149,502
(52,683)
Due to /from other funds
—
—
—
—
—
21,669
(Increase) decrease in liabilities:
Accounts payable
9.457
(99,422)
(46,171)
10,051
(126,085)
389,605
Accrued compensation and
related liabilities
12,571
—
4,573
—
17,144
330,352
Other accrued liabilities
30.395
—
—
—
30,395
16,144
Unearned revenues
—
—
20,294
—
20,294
27,027
Accrual for landfill closure and
postclosure costs
348,634
—
—
—
348,634
819,143
Net cash provided (used) by
operating activities
5 552,856
540,511
710,816
19,662
1,823,845
2,462,675
See accompanying notes to financial statements.
30
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
(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
(b) Government -Wide and Fund Financial Statements
The government wide financial statements (i.e., the statement of net assets and the statement of
activities) report information on all of the activities of the primary government and its component
unit. For the most part, the effect of 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.
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.
31
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
(c) Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the government considers revenues to be available if they are collected within
60 days of the end of the current fiscal period except for grant revenues which are recognized when
the related expenditure is incurred irrespective of when the cash is received. Expenditures generally
are recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
Property taxes and interest associated with the current fiscal period are all considered to be
susceptible to accrual and have been recognized as revenues of the current fiscal period. All other
revenue items are considered to be measurable and available only when cash is received by the
government.
The government reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
The Facilities 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 School Bond Capital Projects Fund accounts for the construction and major maintenance
activities for the Borough's educational facilities funded by school bonds.
The government reports the following major proprietary funds:
The Municipal Solid Waste Collection and Disposal Fund accounts for the collection and disposal of
solid waste and recycling services for the Kodiak Island Borough.
32
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
' June 30, 2009
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.
(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
33
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009 '
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
agreement for the hospital facilities (see note I la), 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.
34
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' 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.
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.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
'
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
' 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.
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.
1 35
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.
1 35
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KODIAK ISLAND BOROUGH '
Notes to Basic Financial Statements
June 30, 2009 '
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.
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.
,
36 1
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
' June 30, 2009
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 definition are reported as nonoperating revenues
and expenses.
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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.
(n 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.
(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.
37
KODIAK ISLAND BOROUGH I
Notes to Basic Financial Statements
June 30, 2009
Child Care Assistance Program 731
(2) Stewardship, Compliance, and Accountability
L.E.P.C. 14,623
(a) Excess of Expenditures over Appropriations
$ 103,902
Special Revenue Funds
The following fund expenditures exceeded their budget:
starting in FY2010.
Fund
Excess
Monashka Bay Road Service Area $
574
The deficit in the Trinity Islands Paving Special Revenue Fund is anticipated to be funded by a special
Womens Bay Road Service Area
23,134
'
Coastal Management
4,324
L.E.P.C.
2,380
Kodiak Arts Council
2,890
'
Fern Fuller Trust
164
$
33,466
'
(b) Deficit Fund Equity
The individual fund deficits at June 30, 2009, are as follows:
Special Revenue Funds:
Bay View Road Service Area $ 6,860
Child Care Assistance Program 731
L.E.P.C. 14,623
Trinity Islands Paving 81,688
$ 103,902
The deficit in the Bay View Road Service Area will be funded by a mill rate increase of one half mill
starting in FY2010.
'
The deficit in the Child Care Assistance Program will be covered by revenues in FY2010.
The deficit in the L.E.P.C. fund will be covered by fund revenues in FY2010.
The deficit in the Trinity Islands Paving Special Revenue Fund is anticipated to be funded by a special
assessment that began in 2006.
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(3) Cash and Investments
June 30, 2009
As of June 30, 2009, the Borough had the following investments:
Investment Type
U.S. agency securities:
Federal Home Loan Bank $
Federal Home Loan Mortgage Corporation
Federal Farm Credit Bank
Alaska Municipal League Investment Pool
Certificates of Deposit
Overnight repurchased agreement
Investment Maturities (in years)
Fair Less
Value than 1 1 to 5
25,813,347
15,406,447
10,406,900
4,055,163
17,883
4,037,280
4,100,531
3,057,091
1,043,440
32,616,632
32,616,632
—
998,320
998,320
—
1,354,491
1,354,491
—
68,938,484
53,450,864
15,487,620
In addition to the investments listed above, Kodiak Island Borough also had cash equivalents of $258,767.
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. The Borough does not have a formal investment
policy that restricts investments based on credit risk.
At June 30, 2009, 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, 2009, the Borough's investment in the
Alaska Municipal League Investment Pool was unrated.
Concentration of Credit Risk
1 The Borough places no limit on the amount the Borough may invest in any one issuer. At June 30, 2009,
the Borough had 49% percent of its investments in U.S. Government agency securities.
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. The Federal Deposit
Insurance Corporation insures $250,000 in the aggregate and unlimited protection of all demand deposits
per customer.
1 39
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
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, 2009.
(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 I:
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Education and
Other
General
Health Debt
Governmental
Enterprise
Fund
Service Fund
Funds
Funds
Total
Receivables:
Grants $
80,121
376,403
116,098
100,000
672,622
Taxes
424,020
—
12,872
—
436,892
Customers and other
—
—
33,082
385,702
418,784
Notes receivable
6,069
—
—
—
6,069
Gross receivables
510,210
376,403
162,052
485,702
1,534,367
Less: allowance for uncollectibles
(15,828)
—
—
—
(15,828)
Net total receivables $
494,382
376,403
162,052
485,702
1,518,539
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
(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, 2009 was as follows:
Beginning Ending
Balance Increase Decrease Balance
Governmental activities:
Capital assets, not being
depreciated:
Land
Construction
work -in- progress
Total
Capital assets, being depreciated:
Buildings and improvements
Improvements other than
buildings
Equipment
Infrastructure
Total
Less accumulated depreciation for:
Buildings and improvements
Improvements other than
buildings
Equipment
Infrastructure
Total
Total capital assets
being depreciated, net
Total governmental
activities, net
$ 23,072,753
23,072,753
14,543,228
16,134,070
— 30,677,298
37,615,981
16,134,070
— 53,750,051
61,519,034
90,579,601
—
— 90,579,601
3,964,683
717,016
— 4,681,699
2,753,123
—
— 2,753,123
5,762,722
—
— 5,762,722
103,060,129
717,016
— 103,777,145
52,684,555 2,279,499
3,355,258
303,180
1,412,168
145,720
4,067,053
144,068
61,519,034
2,872,467
— 54,964,054
— 3,658,438
— 1,557,888
— 4,211,121
64,391,501
41,541,095 (2,155,451)
39,385,644
$ 79,157,076 13,978,619 — 93,135,695
41
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
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 Decrease
$ 1,651,248 —
537,987 86,421
2,189,235 86,421
Ending
1,651,248
624,408
2,275,656
2,178,733
—
—
2, 178,733
2,288,438
—
—
2,288,438
1,832,968
—
(80,242)
1,752,726
6,300,139
—
(80,242)
6,219,897
952,382
47,120
—
999,502
664,812
126,572
—
791,384
1,194,328
96,461
(189,141)
1,101,648
2,811,522
270,153
(189,141)
2,892,534
3,488,617
(270,153)
108,899
3,327,363
$ 5,677,852
(183,732)
108,899
5,603,019
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
43
Beginning
Ending
Balance
Increase Decrease
Balance
Hospital Facilities Fund capital
assets, not being depreciated:
Artwork
$ 16,091
— —
16,091
Land
10,251
— —
10,251
Construction work -in- progress
684,099
4,944,196 —
5,628,295
Total
710,441
4,944,196 —
5,654,637
Capital assets, being depreciated:
Buildings
27,131,044
— —
27,131,044
Improvements other than
buildings
401,046
401,046
Machinery and equipment
3,627,068
— —
3,627,068
Total
31,159,158
— —
31,159,158
Less accumulated depreciation for:
Buildings
10,967,553
825,698 —
11,793,251
Improvements other than
buildings
126,241
14,176 —
140,417
Machinery and equipment
3,057,655
89,681 —
3,147,336
Total
14,151,449
929,555 —
15,081,004
Total capital assets being
depreciated, net
17,007,709
(929,555) —
16,078,154
Total Hospital Facilities
Fund, net
$ 17,718,150
4,014,641 —
21,732,791
Kodiak Fisheries Research Center Fund
capital assets, being depreciated:
Buildings
$ 17,840,410
— —
17,840,410
Improvements other than buildings
1,048,760
55,151 —
1,103,911
Machinery and equipment
1,157,540
— —
1,157,540
Total
20,046,710
55,151 —
20,101,861
Less accumulated depreciation for:
Buildings
5,350,361
594,680 —
5,945,041
Improvements other than buildings
306,678
36,491 —
343,169
Machinery and equipment
1,067,645
81,973 —
1,149,618
Total
6,724,684
713,144 —
7,437,828
Total Kodiak Fisheries
$ 13,322,026
(657,993) —
12,664,033
43
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
44
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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
1,222,086
5,030,617
—
6,252,703
Total
2,899,676
5,030,617
—
7,930,293
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
3,738,244
55,151
—
3,793,395
Machinery and equipment
6,617,576
—
(80,242)
6,537,334
Total
57,506,007
55,151
(80,242)
57,480,916
Less accumulated depreciation for:
Unclassified utility plant in
service
952,382
47,120
—
999,502
Buildings
16,317,914
1,420,378
—
17,738,292
Improvements other than
buildings
1,097,731
177,239
—
1,274,970
Machinery and equipment
5,319,628
268,115
(189,141)
5,398,602
Total
23,687,655
1,912,852
(189,141)
25,411,366
Total capital assets
being depreciated, net
33,818,352
(1,857,701)
108,899
32,069,550
Total business -type
activities, net
$ 36,718,028
3,172,916
108,899
39,999,843
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
Depreciation expense was charged to the departments and functions of
the primary government as follows:
Governmental activities:
General government
$ 315,646
Public safety
118,884
Emergency preparedness
2,500
Health and sanitation department
37,926
Primary and secondary education
2,397,511
Total — governmental activities
2,872,467
Business -type activities:
Municipal solid waste collection and
cisposal
270,153
Hospital facilities
929,555
Kodiak fisheries research center
713,144
Total - business -type activities
1,912,852
Total
$ 4,785,319
(7) Interfund Receivables, Payables and Transfers
(a) Interfund Receivables and Payables
Interfund balances at June 30, 2009 consisted of the following:
Due From
School
Education Bond
and Health Capital
Debt Service Project Hospital
All
Fund Fund Facilities K.F.RC.
Others Total
General Fund = 600,000 — —
150 600,150
o Facilities Fund 1244,725 5,392,750
135,165 6,772,640
a Municipal Solid Waste
Q Collection and Disposal 375,000 — — —
25,000 400,000
All Others — — — —
419,000 419,000
Total $ 375,000 600,000 1244,725 5,392,750
579,315 8,191,790
The balance of $5,392,750 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. $4,915,000 is not
scheduled to be paid in FY2010.
1 45
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
The balance of $1,244,725 due the Facilities Fund from the Hospital Facilities Fund resulted from a
loan of $1,600,000 that was made to pay for part of the cost of a lawsuit. $1,176,864 is not
scheduled to be paid in FY2010.
All remaining balances were short term loans to cover negative cash balances at year end.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:
Principal Interest
Year ending June 30:
2010
2011
2012
2013
2014
2014 -2019
385,000
410,000
440,000
470,000
500,000
3,095,000
357,525
329,700
299,950
268,100
234,150
570,675
Total
742,525
739,700
739,950
738,100
734,150
3,665,675
$ 5,300,000 2,060,100 7,360,100
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 interf ind borrowing. The advance bears
interest at 4 %, and the scheduled payments for the next five fiscal years and thereafter are as follows:
Year ending June 30:
2010
2011
2012
2013
2014
2015 -2019
2020 -2024
Principal
67,861
70,603
73,455
76,423
79,510
448,412
428,461
Interest Total
49,117
46,375
43,523
40,556
37,468
136,482
39,452
116,978
116,978
116,978
116,979
116,978
584,894
467,913
$ 1,244,725 392,973 1,637,698
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
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, 2009, were as
follows:
Transfers In
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Transfers Out
Major Governmental Funds:
General Fund $
Governmental Funds
Enterprise Funds
Education
1,368,486
Municipal
and Health
School Bond Other
Solid Waste Hospital
Debt Service
Capital Governmental
Collection and Facilities
Fund
Projects Funds
Disposal Fund Fund Totals
Major Governmental Funds:
General Fund $
981,036
— 86,000
6,450 295,000
1,368,486
Facilities Special Revenue Fund
932,000
— 185,000
— 397,540
1,514,540
School Bond Capital Projects
—
— 2,843,751
— —
2,843,751
Other Governmental Funds
10,000
933,009 173,505
— 66,500
1,183,014
Total transfers $
1,923,036
933,009 3,288,256
6,450 759,040
6,909,791
A summary of significant transfers are as follows:
1
• The General Fund transferred $981,036 to the Education and Health Debt Service Fund to
pay for debt service on general government debt.
• The General Fund transferred $62,000 to the Building and Grounds Fund to pay additional
snow removal costs at school sites.
• The General Fund transferred $24,000 to the Borough Capital Projects Fund to pay capital
projects.
• The General Fund transferred $295,000 to the Hospital Facilities Enterprise Fund to pay for
capital improvements.
• 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 Kodiak Airport Fire District transferred $12,974 to the Womens Bay Fire Department to
provide for fire protection.
• The Facilities Special Revenue Fund transferred $932,000 to the Education and Health Debt
Service Fund for debt service on school district and hospital bonds.
• The Facilities Special Revenue Fund transferred $397,540 to the Hospital Facilities
Enterprise Fund to pay for capital improvements.
• The Facilities Special Revenue Fund transferred $185,000 to the Building and Grounds
Special Revenue Fund to pay for building insurance.
47
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
• The Fuller Trust Special Revenue Fund transferred $66,500 to the Hospital Facilities
Enterprise Fund for the purchase of new equipment.
• The Debt Service — Other fund transferred $10,000 to the Education and Health Debt Service
Fund to pay for debt service on outstanding general obligation bonds.
• The Debt Service — Other fund transferred $160,530 to the Borough Capital Projects Fund to
pay for capital improvements.
• The Borough Capital Projects Fund transferred $933,009 to the School Bond Capital
Projects Fund to pay for capital projects.
• The School Bond Capital Projects Fund transferred $2,843,751 back to the Borough Capital
Projects Fund to pay for Capital Projects.
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
(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:
Interest
Type of debt Rates Dates
General obligation
bonds — 2000 E Series 4.75 -5.0% 8/1 -2/1
General obligation
bonds — 2000 F Series
6.9 -9.0%
8/1 -2/1
General Obligation
bonds — 2004 C Series
4.0 -5.0%
1/1 -7/1
Principal payments
Issue date Maturity dates Dates Amount
12/12/2000 2/1/2011 2/1/2010 175,000
2/1/2011 180,000
355,000
12/12/2000 2/1/2011 2 /1/2010 150,000
2/1/2011 160,000
310,000
7/21/2004 7/1/2024 7/1/2010
365,000
7/1/2011
385,000
7/1/2012
400,000
7/1/2013
415,000
7/1/2014
435,000
7/1/2015
450,000
7/1/2016
470,000
7/1/2017
485,000
7/1/2018
510,000
7/1/2019
530,000
7/1/2020
555,000
7/l/2021
580,000
7/1/2022
605,000
7/1/2023
635,000
7/1/2024
665,000
7,485,000
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
Authorized
Prior years
Balance at
Retiredt
Balance at
Fiscal year Amount
Issued Retired
July 1, 2008 Issued
Refunded
June 30, 2009
2001 1,485,000
1,485,000 965,000
520,000 —
165,000
355,000
2001 1,175,000 1,175,000 725,000 450,000 — 140,000 310,000
2004 9,300,000 9,300,000 1,465,000 7,835,000
350,000 7,485,000
50
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
6/1/2010
Interest
Principal
payments
Type of debt
Rates Dates
Issue date Maturiv dates Dates
Amount
General obligation
5,950
6/1/2015
6,039
bonds — 2009 A Series
4.0% 2/1 -8/1
4/9/2009 2/1/2014 02/01/10
1,285,000
6/1/2018
6,315
02/01/11
1,285,000
6/1/2020
6,506
02/01/12
1,335,000
$
32,311,505
02/01/13
1,390,000
02/01/14
1,445,000
6,740,000
ADEC loans
Clean water — Karluk
192 — 4.05%
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
66,505
$
32,311,505
53
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
Authorized Prior years Balance at Retiredt Balance at
Fiscal vear Amount Issued Retired July 1. 2008 Issued Refunded June 30.2009
2009 6,740,000 6,740,000 — — 6,740,000 — 6,740,000
1998 400,000 97,019 24,991 72,028 — 5,523 66,505
$ 47,890,000 47,587,019 4,7 34� 932 028 6,740,000 9,360,523 32,311,505
54
1
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
The annual requirements to amortize all general obligation bonded debt and the ADEC loan payable
outstanding as of June 30, 2009, are as follows:
General ADEC
obligation loan payable Total Interest
Year ending June 30:
2010
2,680,000
5,606
2,685,606
1,617,295
2011
2,745,000
5,690
2,750,690
1,570,472
2012
2,500,000
5,775
2,505,775
1,467,334
2013
2,595,000
5,862
2,600,862
1,375,723
2014
2,710,000
5,950
2,715,950
1,291,285
2015 -2019
7,145,000
31,116
7,176,116
5,554,593
2020 -2024
8,840,000
6,506
8,846,506
4,286,041
2025 -2028
3,030,000
—
3,030,000
2,537,140
$ 32,245,000
66,505
32,311,505
19,699,883
There was $5,938 in the Education and Health Debt Service Fund to service 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) Debt Defeasance
On April 9, 2009 the Kodiak Island Borough refinanced the 1998 bond issue. This resulted in a
total savings, based on the net present value of the new debt, of approximately $92,686. This table
shows the savings by year.
FY2009
Refunding Bond
(c) Note Payable
I QQR Rnn d lc c n e
Total
$ 779,486
$ 780,117
$ 779,554
$ 780,322
$ 779,786
$ 3,899,265
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As of June 30, 2009, 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, I999 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
1
$ 1,864,503 1
55
Total
FY2010
$
759,598
FY2011
$
759,358
FY2012
$
758,650
FY2013
$
759,459
FY2014
$
759,156
$
3,796,221
(c) Note Payable
I QQR Rnn d lc c n e
Total
$ 779,486
$ 780,117
$ 779,554
$ 780,322
$ 779,786
$ 3,899,265
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As of June 30, 2009, 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, I999 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
1
$ 1,864,503 1
55
1
For governmental activities, compensated absences are generally liquidated by the General Fund.
56
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30,
2009
(d) Changes in Long -term Liabilities
Long-term liability
for
30, 2009,
follows:
g Y activity
the year ended June
Y Y
was as
Balance
Balance
June 30,
June 30,
Due within
2008
Additions
Reductions
2009
one year
Governmental activities:
Bonds payable:
General obligation bonds
$ 34,860,000
6,740,000
9,355,000
32,245,000
2,680,000
Bond premium
97,269
198,235
6,080
289,424
32,000
34,957,269
6,938,235
9,361,080
32,534,424
2,712,000
ADEC loans
72,028
-
5,523
66,505
5,606
Compensated absences
176,026
234,236
176,026
234,236
234,236
Total
$ 35,205,323
7,172,471
9,542,629
32,835,165
2,951,842
Business -type activities:
Municipal Solid Waste
Collection and Disposal:
Landfill closure and
post- closure
costs
$ 4,041,730
348,634
-
4,390,364
-
Notes payable
Total
1,768,660
$ 5,810,390
95,843
-
1,864,503
444,477
6,254,867
=
Hospital Facilities:
Long term interfund
borrowings
$ 1,309,950
-
65,225
1,244,725
67,861
Total
$ 1,309,950
-
65,225
1,244,725
65,225
Kodiak Fisheries Research
Center:
Long term interfund
borrowings
Total
$ 5,660,000
S 5,660,000
360,000
5,300,000
385,000
=
360,000
385,000
5,300,000
Business -type activities:
Landfill closure and post-
'
closure costs
$ 4,041,730
348,634
-
4,390,364
-
Long term interfund
borrowings
6,969,950
-
425,225
6,544,725
452,861
Notes payable
1,768,660
95,843
-
1,864,503
-
Total
$ 12,780,340
444,477
425,225
12,799,592
452,861
For governmental activities, compensated absences are generally liquidated by the General Fund.
56
KODIAK ISLAND BOROUGH j
Notes to Basic Financial Statements
June 30, 2009
(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 $4,390,364 as of June 30, 2009, 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, 2009,
an increase of $348,634 was recorded in the current year based on current year usage and changes in
estimates. An estimated additional $1,386,430 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 $5,776,794 is based on the
amount that would be paid if the landfill were closed as of June 30, 2009. 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 Iiability. 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.
r
L
57 '
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P-�
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
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:
j • 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.
U -1i
KODIAK ISLAND BOROUGH '
Notes to Basic Financial Statements
June 30, 2009
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 $37,000 in 2009 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 $43,000 in 2009 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
$110,000 in 2009 to $143,601 in 2018.
(12) Retirement Commitments
,
Alaska Public Employee Retirement System (PERS)
The Borough has adopted Governmental Accounting Standards Board (GASB) Statement No. 27,
Accounting for Pensions by State and Local Governmental Employees and GASB 45, Accounting
and Financial Reporting by Employers for Post - employment Benefits Other than Pensions. GASB
No. 27 and GASB No. 45 establish uniform standards for the measurement, recognition and display
of pension and other post - employment benefits other than pensions (healthcare)
expenditures /expense and related liabilities, assets, note disclosure and applicable required
supplementary information in the financial reports of state and local governmental employers.
Retirement Plans. All full -time employees and certain permanent part-time employees of the ,
Borough participate in the State of Alaska Public Employees' Retirement System (PERS). In
addition to the pension plan the system also administers a post- employment healthcare benefit plan.
59
1
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
Summary of Significant Accounting Policies. PERS financial statements are prepared using the
accrual basis of accounting. PIan member contributions are recognized in the period in which the
contributions are due. The Borough's contributions are recognized when due and a formal
commitment to provide the contributions has been made. Benefits and refunds are recognized when
due and payable in accordance with the terms of the plan. All plan investments are reported at fair
market value or estimated fair market value.
Plan Description. The Borough contributes to the Alaska Public Employees Retirement System
(PERS), which includes both an cost - sharing multiple employer defined benefit pension and a post -
employment healthcare plans administered by the Commissioner of Administration and the Alaska
Retirement Management Board (ARMB). There are currently 160 employers participating in PERS,
including the State of Alaska and 159 political subdivisions and public organizations. PERS
provides (1) retirement benefits including disability and death benefits, and post - employment
healthcare to plan members and beneficiaries. The authority to establish and amend benefit
provisions is assigned to the ARMB. The Public Employee's Retirement System issues a publicly
available financial report that includes financial statements and required supplementary information
for PERS. This report may be obtained from the system at Pouch C, Juneau, Alaska 99811.
Benefits vest with five years of credited service. Employees enrolled prior to July 1, 1986 with five
or more years of credited service are entitled to annual pension benefits beginning at normal
retirement age 55 or early retirement age 50. For employees enrolled after June 30, 1986, 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 per
month for each year of service when the calculated benefit is less.
The percentage multipliers for police /fire personnel are 2% for the first ten years of service and 2.5%
for all service over 10 years. The percentage multipliers for all other participants are 2% for the first
ten years, 2.25% for the next ten years, and 2.5% for all remaining service earned on or after July 1,
1986. All service before that date is calculated at 2 %.
Post - employment healthcare benefits are provided without cost to all members first enrolled before
July 1, 1986. Members first enrolled after June 30, 1986 and who have not reached age 60 may elect
to pay for major medical benefits.
Pension benefits are adjusted each year based upon increases in the Consumer Price Index (CPI) for
the prior year. The increase in the benefits is 75% of the CPI increase up to a 9% maximum for
recipients who are at least age 65 or on disability or 50% of the increase up to a 6% maximum for
recipients who are at least age 60 but under age 65 or who have been receiving benefits for at least
five years. Starting at age 65, or at any age for those employed before July 1, 1986, a retired
employee who remains in Alaska is eligible for an additional allowance equal to 10% of the base
benefit or $50 a month, whichever is greater.
1 60
1
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
Post Retirement Pension Adjustments. Post retirement pension adjustments (PRPAs) are granted
annually to eligible benefit recipients when the consumer price index (CPI) increases during the
preceding calendar year. PRPAs are calculated by multiplying the recipient's base benefit, including
past PRPAs, times:
(a) 75% of the CPI increase in the preceding calendar year or 9 %, whichever is less, if the
recipient is at least 65 or on PERS disability; or
(b) 50% of the CPI increase in the preceding calendar year or 6 %, whichever is less, if the
recipient is at least 60, or has been receiving benefits for at least five years.
Ad hoc PRPAs, up to a maximum of 4 %, may be granted to eligible recipients who first entered the
PERS before July 1, 1986, if the CPI increases and the financial condition of the fund will permit an
increase. In a year where an ad hoc PRPA is granted, eligible recipients will receive the higher of
the two calculations.
Funding Policy. Active PERS members are required to contribute 6.75% (2% pension cost and
4.75% post - employment health care cost) of their annual covered salary and the Borough is required
to contribute at an actuarial determined rate; the current rate is 35.22% (10.91% pension cost and
24.31 % post - employment health care cost). The legislature capped the employer rate at 22 %, with
the State of Alaska contributing an on behalf payment for the difference between actuarial required
contribution and the cap. The contribution requirements of plan members and the Borough are
established and may be amended by the ARMB.
Annual Pension Cost. For 2009, the Borough annual pension cost of $533,498 for PERS was equal
to the Borough's actual contributions. The State of Alaska contributed $336,769 on behalf of the
Borough.
Alaska Public Employee Retirement System (PERS) — Defined Contribution Plan
Plan Description and Funding Requirements. School Districts 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% for the retiree medical plan, 0.58% for occupational and death and disability benefits and
3% of employers average annual employee compensation of the health reimbursement arrangement (BRA).
The employer effective contribution rate 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%
61 1
1
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2009
Plan provisions and contribution requirements and amendments are established by the Alaska Retirement
Management Board (ARMB). Total contributions for the year ended June 30, 2009 are as follows:
Employer Employee
Defined contribution $ 6,163 9,861
Retiree medical plan 1,220
Occupational health and disability benefits 715 -
Health reimbursement agreement (HRA) 4,502 -
Actual contributions were ual to the annual required contributions.
e9 q
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, 2009, was $134,360.
1
1
[I
The first plan is managed by the International Borough Managers Association Retirement
Corporation. $60,043 was contributed to this plan during the year ended June 30, 2009. 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. $74,317 was contributed to this
plan during the year ended June 30, 2009. The Borough believes that the plan does not meet the
criteria for inclusion as a fiduciary fund.
(a) Extraordinary Item
The Alaska Public Employees Retirement System Plan (PERS) changed from an agent multiple
employer defined benefit plan to a multiple employer cost sharing defined benefit plan effective July
1, 2008. This change eliminated each participating employers' pension and other employment benefit
plan individual obligations. Since the plan is now a cost sharing plan all employers share in the
obligation pool and pay the same percentage rate of salaries annually. Individual obligations by
employer no longer exist. This resulted in an extraordinary gain for the year ended June 30, 2009 of
$1,828,910.
(13) 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.
A
1
KODIAK ISLAND BOROUGH ,
Notes to Basic Financial Statements
June 30, 2009 ,
(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 Borough received a payment of
approximately $318,000 in 2009, and should expect a final payment of accrued interest in Fiscal
Year 2010.
(14) Subsequent Events
Management have evaluated subsequent events through December 31, 2009, the date which the financial
statements were available for issue. I
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ril
63 1
1
REQUIRED SUPPLEMENTARY INFORMATION
1
KODIAK ISLAND BOROUGH
64
Budgetary Comparison Schedule
1
General
Fund
Year ended June 30, 2009
(With financial
information for
the year ended June
30, 2008)
2009
Variance with
Final Budget -
Budget
Positive
2008
Original
Final
Actual
(Negative)
Actual
Revenues:
Property taxes:
Real
$ 7,980,000
8,051,980
8,029,453
(22,527)
7,846,642
Personal
1,102,500
1,097,520
1,092,850
(4,670)
1,053,918
Boat
26,000
51,000
24,017
(26,983)
25,079
Motor vehicle
225,000
250,000
274,462
24,462
252,811
'
Penalty and interest
175,000
200,000
132,471
(67,529)
178,081
Total property taxes
9,508,500
9,650,500
9,553,253
(97,247)
9,356,531
Intergovernmental:
State sources:
State Revenue Sharing
751,477
777,477
777,571
94
591,286
Tax Payer Relief
-
-
-
-
411,747
Raw fish tax
1,000,000
1,297,000
1,288,926
(8,074)
1,059,161
'
Fish revitalization
50,000
50,000
55,382
5,382
41,811
Commercial Passenger Vessel Tax
24,778
24,778
Electric Co -op tax
26,000
26,000
27,524
1,524
27,668
On behalf PERS payment
-
-
247,007
247,007
-
'
Totalstatesources
1 ,827,477
2,1 50,477
2,421,188
270,711
2, 131,673
Federal sources:
Payments in lieu of taxes
Fish and Wildlife revenue sharing
800,000
350,075
1,300,000
350,075
1,775,015
262,694
475,015
(87,381)
805,001
340,067
Schools and Roads - Grants to States
2,727
2,727
Total federal sources
1,150,075
1,650,075
2,040,436
390,361
1,145,068
Total intergovernmental
revenue
2,977,552
3,800,552
4,461,624
661,072
3,276,741
Severance taxes:
Fish
Mining
1,256,613
11,610
1,456,613
11,610
1,289,695
14,001
(166,918)
2,391
1,409,253
12,567
Logging
19,990
19,990
7,492
(12,498)
14,390
Total severance taxes
1,288,213
1,488,213
1,311,188
(177,025)
1,436,210
Licenses, permits, fees, and other local
revenues:
Building and trailer permits
45,000
70,000
52,002
(17,998)
46,097
Subdivision and zoning fees
4,500
4,500
6,075
1,575
4,900
1
Sale of copies
8,000
8,000
7,340
(660)
8,308
Total licenses, permits, fees,
and other local revenues
57,500
82,500
65,417
(17,083)
59,305
Investment income
300,000
300,000
292,825
(7,175)
544,926
'
Other
47,750
89,750
131,944
42,194
40,951
Total revenues
14,179,515
15,411,515
15,816,251
404,736
14,714,664
(continued)
64
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2009
(With financial information for the year ended June 30, 2008)
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
Public safety - animal control
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
Kodiak College and city libraries
Primary and secondary education
Total expenditures
Excess of revenues
over expenditures
Other financing uses:
Transfers out
Change in fund balance
Fund balance, at beginning of year
Fund balance, at end of the year
See accompanying notes to required supplementary information.
65
1
P
11
2009
Variance with
Final Budget -
Budget
Positive
2008
Original
Final
Actual
(Negative)
Actual
S 297,600
297,600
246,765
50,835
212,466
183.440
186,440
161,128
25,312
155.597
358,600
362,970
407,768
(44,798)
284,585
411,510
442,744
464,767
(22,023)
372.932
130,000
130,000
66,585
63,415
155,352
691,640
704,960
692,596
12,364
671,824
588,533
601,740
487,354
114,386
467.042
440,760
449,200
486,325
(37,125)
423,104
158,715
165,193
181,046
(15,853)
106,920
3,260,798
3,340,847
3,194,334
146,513
2,849,822
82,500
84,125
84,125
-
72,380
749,780
758,864
691,604
67,260
699,567
147,765
153,778
90,016
63,762
118,209
75,000
75,000
43,500
31,500
46,289
972,545
987,642
825,120
162,522
864,065
8,800
8,800
12,488
(3,688)
5.713
233,000
233,000
232,699
301
232,699
81,000
229,600
161,571
68,029
183.747
93,000
93,000
87,000
6,000
-
10,020,184
9.936,184
9,956,618
(20,434)
9,123,412
14,751,827
14,913,198
14,553,955
359,243
13,331,838
(572.312)
498.317
1,262,296
45,493
1,382,826
(769.486)
(1,368,486)
(1,368,486)
-
(945.660)
S (1,341,798)
(870,169)
(106,190)
763,979
437.166
3,230,479
2,793,313
S 3,124,289
3,230,479
See accompanying notes to required supplementary information.
65
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11
1
i
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund — Facilities
Year ended June 30, 2009
(With financial information for the year ended June 30, 2008)
See accompanying notes to required supplementary information.
66
2009
Variance wit
Final Budget —
Budget
Positive
2008
Original
Final
Actual
(Negative)
Actual
Revenues:
Investment income
$ 2,000,000
2,000,000
1,337,694
(662,306)
2,046,071
Expenditures:
Contingencies
157,750
185,390
—
185,390
—
Excess of revenues over
expenditures
1,842,250
1,814,610
1,337,694
(476,916)
2,046,071
Other financing sources (uses):
Transfers out
(1,842,250)
(1,814,610)
(1,514,540)
300,070
(1,814,610)
Change in fund balance
$
—
(176,846)
(176,846)
231,461
Fund balance, at beginning of year
39,869,858
39,638,397
Fund balance, at end of year
$ 39,693,012
39,869,858
See accompanying notes to required supplementary information.
66
1
I KODIAK ISLAND BOROUGH
Notes to Required Supplementary Information — Budgetary Comparison Schedules
I June 30, 2009
' 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,
' which is generally greater than one year.
• Appropriations Iapse 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.
J
67
ADDITIONAL SUPPLEMENTARY INFORMATION
1
r
1
1
1
1
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Debt Service Fund - Education and Health
Year ended June 30, 2009
(With summarized financial information for the year ended June 30, 2008)
Revenues:
Intergovernmental:
State sources
Investment income
Premium on bonds
Total revenues
Expenditures:
General government
Debt service:
Prinicpal
Interest
Debt issuance
Total expenditures
Deficiency of revenues over
expenditures
Other financing sources (uses):
Transfers in
Refunding bonds issued
Payment to refunded bond escrow agent
Net other financing sources (uses)
Change in fund balance
Fund balance (deficit), at beginning of year
Fund balance (deficit), at end of year
2009
Variance with
Original
Final Budget –
and Final
Positive
2008
Budget
Actual
(Negative)
Actual
$ 2,144,617
2,146,506
1,889
1,801,750
10,000
8,718
(1,282)
30,330
198,235
198,235
—
44,652
2,352,852
2,353,459
607
1,876,732
10,000
242
9,758
26,920
2,205,450
2,495,056
(289,606)
2,205,441
1,255,320
1,571,295
(315,975)
1,255,313
72,764
68,635
4,129
—
3,543,534
4,135,228
(591,694)
3,487,674
(1,190,682)
(1,781,769)
(591,087)
(1,610,942)
1,923,036
1,923,036
—
1,661,460
6,740,000
6,740,000
—
—
(6,865,471)
(6,865,467)
(4)
—
1,797,565
1,797,569
(4)
—
$ 606,883
15,800
(591,083)
50,518
(9,862)
(60,380)
$
5,938
(9,862)
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue
See Special Revenue section of this report.
Debt Service
See Debt Service section of this report.
Capital Projects
See Capital Projects section of this report.
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 preventior
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 servicf
area.
The Service Area No. 1 Fund accounts for the activities related to maintenance service to roads within the district,
including snow removal, ditching and grading.
The Womens Bay Service Area Fund accounts for the activities related to maintenance service to roads within the
service area, including snow and ice removal, ditching and culvert work.
The Bay View Road Service Area Fund accounts for the activities related to road services within the service area.
The Service Area No. 2 Fund accounts for the activities related to water and sewer services in the service area.
This fund is in the design stage at present.
The Coastal Management Fund accounts for State of Alaska and Federal grants related to the effects of coastal
energy development impacts. Expenditures of these grants are for comprehensive plans, coastal sensitivity analysis .
outer continental shelf impact analysis, ordinance update, and planning and zoning.
The 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.
(continued
NONMAJOR SPECIAL REVENUE FUNDS
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
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Ci
KODIAK ISLAND BOROUGH
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2009
(With summarized financial information at June 30, 2008)
Assets
Equity in central treasury
Receivables:
State of Alaska
Federal Government
Property taxes
Land sales contracts, due within one year
Notes receivable
Other
Due from other funds
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 Capital
Revenue Project
$ 3,701,529 1,519,233
Totals
2009 2008
5,220,762 4,389,288
24,502
29,562
54,064
211,379
-
62,034
62,034
11,093
12,872
-
12,872
15,008
41,598
-
41,598
38,308
-
-
-
448,533
33,082
-
33,082
25,585
419,000
-
419,000
-
172,449
-
172,449
193,155
$ 4,405,032
1,610,829
6,015,861
5,332,349
$ 206,154
533,523
739,677
236,355
-
5,377
5,377
11,904
700
-
700
828
179,316
-
179,316
362,215
212,197
322,088
534,285
260,087
598,367
860,988
1,459,355
871,389
387,668
-
387,668
171,800
3,418,997
749,841
4,168,838
4,289,160
3,806,665
749,841
4,556,506
4,460,960
$ 4,405,032
1,610,829
6,015,861
5,332,349
69
1
1
KODIAK ISLAND BOROUGH
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
Year ended June 30, 2009
(With summarized financial information for year ended June 30, 2008)
Expenditures:
General government
Public safety
Community and economic development
Health and sanitation department
Service district maintenance
Capital improvements:
Schools
General
Debt service
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Net other financing sources (uses)
Change in fund balances
Fund balances (deficit), at beginning of year
Fund balances, at end of year
Special
Debt
Capital
Revenues:
Property taxes and assessments
'
Intergovernmental:
Totals
State sources
Funds
Federal sources
Funds
Land sale proceeds
2008
Licenses, permits, fees,
'
and other local revenues
1,012,432
Investment income
20,180
Other
1,378,934
Total revenues
KODIAK ISLAND BOROUGH
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
Year ended June 30, 2009
(With summarized financial information for year ended June 30, 2008)
Expenditures:
General government
Public safety
Community and economic development
Health and sanitation department
Service district maintenance
Capital improvements:
Schools
General
Debt service
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Net other financing sources (uses)
Change in fund balances
Fund balances (deficit), at beginning of year
Fund balances, at end of year
Special
Debt
Capital
Revenue
Service
Project
Totals
Funds
Fund
Funds
2009
2008
$ 1,012,432
-
-
1,012,432
897,946
20,180
-
1,378,934
1,399,114
427,014
129,561
-
952,319
1,081,880
1,204,816
30,561
-
-
30,561
19,458
677,110
-
-
677,110
558,125
119,678
880
20,178
140,736
234,769
88,562
-
-
88,562
306,798
2,078,084
880
2,351,431
4,430,395
3,648,926
872,448
-
-
872,448
941,802
376,701
-
-
376,701
385,529
83,381
-
-
83,381
59,138
101,048
-
-
101,048
81,974
398,219
-
-
398,219
374,320
-
-
2,008,569
2,008,569
1,008,346
-
-
1 ,277,106
1,277,106
677,865
7,113
-
-
7,113
7,863
1,838,910
-
3,285,675
5,124,585
3,536,837
239,174
880
(934,244)
(694,190)
112,089
259,975
-
3,028,281
3,288,256
205,150
(79,475)
(170,530)
(933,009)
(1,183,014)
(79,290)
180,500
(170,530)
2,095,272
2,105,242
125,860
419,674
(169,650)
1,161,028
1,411,052
282,699
3,386,991
169,650
(411,187)
3,145,454
3,411,601
$ 3,806,665
-
749,841
4,556,506
3,694,300
70
71
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30, 2009
(With summarized financial information at June 30, 2008)
Fire and Road Service Areas
Fire
Road
,
Fire Nomens
Kodiak
Monashka
Protection Bay Fire
Airport Fire
Bay Road
Service
Assets
Area No. I Department
District
Service Area
Area No. I
Equity in central treasury
S 830,438 298,684
33
18,(54
105,165
'
Receivables:
State of Alaska
— —
—
Property taxes
4,975 1,708
20
479
3.200
Land sales contracts, due within one year
—
Other
— —
—
_
Due from other funds
— —
—
—
375.000
Land sale contracts, due afler one year
— —
_
—
Total assets
S 835,413 300,392
33,194
18,633
483.365
Liabilities and Fund Balances (Deficits)
Liabilities:
Accounts payable
18,717 20,765
—
525
76,419
Customer deposits
— 550
—
—
—
Due to other s
150
Unearned ed revenues
Unearned
— _
=
_
,
Total liabilities
18,867 21,315
—
525
76,419
Fund balances (deficits):
Designated for subsequent year expenditures
_
Undes(gnated
816,546 279,077
33.194
18,108
406,946
Total fund balances (deficits)
816,546 279,077
33,194
18,108
406,946
Total liabilities and fund balances (deficits) $ 835,413 300,392
33,194
18,633
483,365
,
71
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1 72
Fire and Road Service Areas
'
Road
Federal and State Grant Programs
Child Care
Womens Bay
Bay View Road
Service Area
Coastal
Assistance
'
Service Area
154,350
Service Area
No. 2
Management
Program
L.E.P.C.
Land Sales
3.292
5.431
2,337
27,117
2,678
1,140,761
10,340
5,053
9,109
-
2282
198
-
-
41,598
250
-
-
-
-
-
-
44,000
-
-
172,449
156,632
3.490
5,431
37,457
7,390
11,787
1,399.058
19,178
350
-
3.499
121
11,410
6,420
10.000
8,000
15,000
-
=
-
212,197
19,178
10,350
3
8.121
26,410
218,617
-
-
110,313
137,454
(6,860)
5,431
33,958
(731)
(14,623)
1,070,128
137,454
(6,860)
5,431
33.958
(731)
(14,623)
1,180,441
156,632
3,490
5,431
37,457
7,390
11,787
1,399,058
(Continued)
t
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r
1 72
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Balance Sheet, (continued)
June 30, 2009
73
1
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i
1
Street Lighting Districts
Woodland
Buildings
Acres Street
Trinity Islands
and
Light Service
Street Light
Kodiak Arts
Tourism
Assets
Grounds
Area
Service Area
Council
Development
Equity in central treasury
$ 359,184
7,671
4,736
144
57,431
Receivables:
State of Alaska
—
—
—
Property taxes
—
10
—
—
—
Land sales contracts, due within one year
—
—
—
—
—
Other
356
—
—
10,856
21
Due from other funds
—
—
—
—
—
Land sale contracts, due after one year
—
—
—
—
Total
$ 359,540
7,681
4,736
11,000
79,051
Liabilities and Fund Balances (Deficits)
Liabilities:
Accounts payable
48,188
418
144
—
—
Customer deposits
—
—
—
150
Due to other funds
—
—
—
11,000
—
Uneamed revenues
—
—
—
—
Total liabilities
48,188
418
144
11,000
150
Fund balances (deficits):
Unreserved:
Designated for subsequent year expenditures
207,205
—
—
—
—
Undesignated
104,147
7,263
4,592
—
78,901
Total fund balances (deficits)
311,352
7,263
4,592
—
78.901
Total
$ 359,540
7,681
4,736
11,000
79,051
73
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1
t
i
1
Mission Lake
Fern Fuller
Trinity Islands
Totals
Tide Gate
Trust
Paving
2009
2008
13,703
583,601
53,478
3,701,529
3,646,784
-
24.502
15,228
-
-
-
12,872
11,770
-
41.598
54.137
-
-
-
33,082
38.672
-
-
-
419,000
-
-
-
-
172,449
176,641
13,703
583,601
53,478
4,405,032
3.943
-
206,154
102,917
-
-
-
700
800
135,166
179,316
224,349
-
-
212,197
228,175
-
135,166
598,367
556,241
-
70,150
-
387,668
150,845
13,703
513.451
(81,688)
3,418,997
3,236,146
13,703
583,601
(81,688)
3,806,665
3,386,991
13,703
583,601
53,478
4,405,032
3,943,232
74
1
I
75 1
KODIAK ISLAND BOROUGH
Nomnajor Special Revenue Funds
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficits)
Year ended June 30, 2009
(With summarized financial information for the year ended June 30, 2008)
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
$ 423,587
68,858
13,427
51,747
Intergovernmental:
State sources
-
-
-
-
Federal sources
-
-
-
-
Land sale proceeds
-
-
-
-
Licenses, permits, fees,
and other local revenues
-
12,361
Investment income
28,412
9,022
1,244
1,232
Other
2,079
-
-
-
Total revenues
454,078
90,241
14,671
52,979
Expenditures:
General government
-
Public safety
296,586
59,907
28
-
Community and economic development
-
-
-
-
Health and sanitation department
-
-
-
-
Service district maintenance
-
-
-
53,164
Debt service
-
-
-
-
Total expenditures
296,586
59,907
28
53,164
Excess (deficiency) of revenues
over expenditures
157,492
30,334
14,643
(185)
Other financing sources (uses):
Transfers in
-
12,975
-
-
Transfers out
-
-
(12,975)
-
Net other financing sources (uses)
-
12,975
(12,975)
-
Change in fund balances
157,492
43,309
1,668
(185)
Fund balances (deficits), at beginning of year
659,054
235,768
31,526
18,293
Fund balances (deficits), at end of year
$ 816,546
279,077
33,194
18,108
I
75 1
C�
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I
1 76
Fire and Road Service Areas
Road
Federal and State Grant Programs
Service
Womens Bay
Bay View Road
Service
Coastal
Child are
Assistance
Area No. 1
Service Area
Service Area
Area No. 2
Management
Program
L.E.P.C.
Land Sales
292,079
105,911
7,162
=
_
_
-
20,180
_
-
-
-
-
28,513
101,048
-
-
-
-
-
-
-
30,561
-
15,017
25,000
-
-
1
7,094
20
169
-
-
-
31,541
-
-
-
-
-
-
-
80
307,096
-
138,005
-
7,182
169
28,513
101,048
20,180
63,182
-
-
-
-
-
23,542
-
-
-
-
-
20,180
-
-
-
-
-
28,324
-
-
-
101,048
170,947
-
162,191
10,970
170,947
162,191
10,970
-
28,324
101,048
-
20,180
-
23,542
136,149
(24,186)
(3,788)
169
189
-
39,640
136,149
(24,186)
(3,788)
169
189
-
-
39,640
270,797
161,640
(3,072)
5262
33,769
(731)
(14,623)
1,140,801
406,946
137,454
(6,860)
5,431
33,958
(731)
(14,623)
1,180,441
(continued)
C�
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1 76
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, 2009
(With financial information for the year ended June 30, 2008)
81
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes
$ 12,440
13,427
987
12,794
Investment income
630
1,244
614
2,332
Total revenues
13,070
14,671
I,601
15,126
Expenditures:
Public safety:
Support goods and services
280
28
252
24
Excess of revenues over expenditures
12,790
14,643
1,853
15,102
Other financing uses:
Transfers out:
Womens Bay Fire Department Special
Revenue Fund
(12,790)
(12,975)
(185)
(12,790)
Change in fund balance
$ —
1,668
1,668
2,312
Fund balance, at beginning of year
31,526
29,214
Fund balance, at end of year
$
33,194
31,526
81
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
Budget and Actual
Year ended June 30, 2009
(With financial information for the year ended June 30, 2008)
82
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes
$ 51,860
51,747
(113)
43,086
Investment income
730
1,232
502
3,923
Total revenues
52,590
52,979
389
47,009
Expenditures:
Service district maintenance:
Personnel services
600
900
(300)
519
Support goods and services
200
119
81
80
Snow removal /sanding
20,000
22,101
(2,101)
23,007
Road grading/ditching
6,000
27,419
(21,419)
1,240
Repairs and maintenance
25,790
2,625
23,165
42,307
Total expenditures
52,590
53,164
(574)
67,153
Excess (deficiency) of revenues
over expenditures
$ —
(185)
(185)
(20,144)
Fund balance, at beginning of year
18,293
38,437
Fund balance, at end of year
$
18,108
18,293
82
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas - Service Area No. I
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2009
(With financial information for the year ended June 30, 2008)
83
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes
$ 269,700
292,079
22,379
225,707
Investment income
-
15,017
15,017
24,540
Total revenues
269,700
307,096
37,396
250,247
Expenditures:
Service district maintenance:
Personnel services
8,650
7,413
1,237
7,776
Support goods and services
1,100
730
370
479
Snow removal /sanding
100,000
95,809
4,191
94,993
Road grading/ditching
84,950
48,981
35,969
20,078
Repairs and maintenance
75,000
18,014
56,986
43,346
Total expenditures
269,700
170,947
98,753
166,672
Excess of revenues
over expenditures
$ -
136,149
136,149
83,575
Fund balance, at beginning of year
270,797
187,222
Fund balance, at end of year
$
406,946
270,797
83
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1 84
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, 2009
(With financial information for the year ended June 30, 2008)
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes
$ 101,057
105,911
4,854
104,365
Licenses, permits, fees, and
other local revenues
Investment income
20,000
3,000
25,000
7,094
5,000
4,094
24,000
16,710
Total revenues
124,057
138,005
13,948
145,075
Expenditures:
Service district maintenance:
Personnel services
850
2,172
(1,322)
1,140
Support goods and services
20,500
3,761
16,739
280
Snow removal /sanding
48,400
95,058
(46,658)
82,018
Road grading /ditching
37,307
12,905
24,402
15,622
Repairs and maintenance
32,000
48,295
(16,295)
31,319
Total expenditures
139,057
162,191
(23,134)
130,379
Excess (deficiency) of revenues over
expenditures
$ (15,000)
(24,186)
(9,186)
14,696
Fund balance, at beginning of year
161,640
146,944
Fund balance, at end of year
$
137,454
161,640
V�-
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1 84
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, 2009
(With financial information for the year ended June 30, 2008)
2009
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
—
Variance with
(381)
563
Final Budget
12
Final
Positive
2008
Budget
Actual (Negative)
Actual
$ 5,500
7,162 1,662
6,621
200
20 (180)
213
5,700
7,182 1,482
6,834
—
381
(381)
563
100
12
88
9
9,000
7.196
1,804
6,349
1,100
350
750
1,212
1,500
3,031
(1,531)
640
11,700
10,970
730
8,773
$ (6,000)
(3,788)
2,212
(1,939)
(3,072)
(1,133)
(3,072)
85
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, 2009
(With financial information for the year ended June 30, 2008)
2009
Revenues:
Investment income
Expenditures
Excess of revenues over
expenditures
Fund balance, at beginning of year
Fund balance, at end of year
Final
Budget
$ 100
$ 100
86
Variance with
Final Budget
Positive
2008
Actual
(Negative)
Actual
169
69
362
169
69
362
5,262
4,900
$ 5,431
5,262
86
87
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, 2009
(With financial information for the year ended June 30, 2008)
2009
Variance with
Final Budget
Final
Positive
2008
Budget Actual
(Negative)
Actual
Revenues:
Intergovernmental:
Federal sources — grants
$ 24,000 28,513
4,513
9,197
Expenditures:
Community and economic development:
Planning and zoning
24,000 28,324
(4,324)
9,130
Excess of revenues over
expenditures
$ — 189
189
67
Fund balance, at beginning of year
33,769
33,702
Fund balance, at end of year
$ 33,958
33,769
87
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, 2009
(With financial information for the year ended June 30, 2008)
88
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
Revenues:
Intergovernmental:
Federal sources — grants
$ 102,048
101,048
(1,000)
82,026
Investment income
—
—
—
477
Total revenues
102,048
101,048
(1,000)
82,503
Expenditures:
Health and sanitation department:
Personnel
91,088
84,057
7,031
66,015
Support goods and services
10,960
16,991
(6,031)
15,959
Total expenditures
102,048
101,048
1,000
81,974
Excess of revenues over
expenditures
$ —
—
—
529
Fund balance (deficit), at beginning of year
(731)
(1,260)
Fund balance (deficit), at end of year
$
(731)
(731)
88
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, 2009
(With financial information for the year ended June 30, 2008)
2009
Revenues
Intergovernmental:
State sources — grants
Expenditures:
Public safety:
Personnel services
Professional services
Support goods and services
Total expenditures
Excess of revenues
over expenditures
Fund deficit, at beginning of year
Fund deficit, at end of year
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
2008
$ 17,800
20,180
2,380
18,273
11,000
12,982
(1,982)
15,290
3,300
(3,764)
7,064
—
3,500
10,962
(7,462)
2,510
17,800
20,180
(2,380)
17,800
$ —
—
—
473
(14,623)
(15,096)
$
(14,623)
(14,623)
89
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Land Sales
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2009
(With financial information for the year ended June 30, 2008)
90
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
Revenues:
Land sale proceeds
$ 33,781
30,561
(3,220)
19,458
Licenses, permits, fees, and other
local revenues
1,000
1,000
-
1,000
Gravel sales
40,000
-
(40,000)
23,834
Investment income
22,990
31,541
8,551
53,426
Other
-
80
80
80
Total revenues
97,771
63,182
(34,589)
97,798
Expenditures:
General government:
Personnel services
26,494
12,003
14,491
11,500
Contracted services
4,550
-
4,550
4,233
Support goods and services
66,727
11,539
55,188
4,158
Total expenditures
97,771
23,542
74,229
19,891
Excess of revenues
over expenditures
$ -
39,640
39,640
77,907
Fund balance, at beginning of year
1,140,801
1,062,894
Fund balance, at end of year
$
1,180,441
1,140,801
90
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, 2009
(With financial information for the year ended June 30, 2008)
Revenues:
Intergovernmental:
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:
General Fund
Facilities Special Revenue Fund
Total other financing sources
Change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
62,000
2009
185,000
185,000
247,000
247,000
Variance with
56,827
254,525
Final Budget
311,352
Final
Positive
2008
Budget
Actual
(Negative)
Actual
$ 429,810
565,531
135,721
436,284
8,600
6,199
(2,40I)
18,137
-
65
65
-
438,410
571,795
133,385
454,421
349,500
336,724
12,776
331,778
408,985
392,570
16,415
346,122
30,000
20,068
9,932
3,326
6,000
12,606
(6,606)
10,260
794,485
761,968
32,517
691,486
(356,075)
(190,173)
165,902
(237,065)
62,000
62,000
185,000
185,000
247,000
247,000
$ (109,075)
56,827
254,525
$
311,352
165,902
192,360
192,360
(44,705)
299,230
254,525
91
1
1
1
1
1
1
A
1
1
i
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, 2009
(With financial information for the year ended June 30, 2008)
92
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes $
8,320
8,397
77
—
Investment income
100
276
176
547
Total revenues
8,420
8,673
253
2,555
Expenditures:
General government:
Support goods and services
8,420
5,215
3,205
5,600
Excess (deficiency) of revenues over
expenditures $
—
3,458
3,458
(5,053)
Fund balance, at beginning of year
3,805
8,858
Fund balance, at end of year
$
7,263
3,805
92
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, 2009
(With financial information for the year ended June 30, 2008)
Revenues:
Property taxes
Income from investments
Total revenues
Expenditures:
General government:
Support goods and services
Total expenditures
Excess of revenues over
expenditures
Fund balance, at beginning of year
Fund balance, at end of year
93
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
$ 3,860
3,873
13
3,871
60
135
75
128
3,920
4,008
88
3,999
3,920
1,809
2,111
1,957
3,920
1,809
2,111
1,957
$ —
2,199
2,199
2,042
2,393
351
$
4,592
2,393
93
1
1
1
1
1
1
A
1
1
1
1
1
1
1
1
1
1
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, 2009
(With financial information for the year ended June 30, 2008)
2009
Revenues:
Licenses, permits, fees, and other
local revenues:
Reimbursement from Kodiak
Arts Council
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
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
2008
$ 68,360
73,218
4,858
62,795
46,410
51,568
(5,158)
46,911
21,950
21,651
299
20,972
(1,969)
1,969
464
68,360
71,250
(2,890)
68,347
$ —
1,968
1,968
(5,552)
(1,968)
3,584
$
—
(1
94
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, 2009
(With financial information for the year ended June 30, 2008)
95
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
Revenues:
Investment income
$ 980
1,607
627
1,292
Transient accommodations tax
70,000
86,338
16,338
79,182
Total revenues
70,980
87,945
16,965
80,474
Expenditures:
Community and economic development:
Contributions
55,000
55,000
—
50,000
Support goods and services
15,980
57
15,923
8
Total expenditures
70,980
55,057
15,923
50,008
Excess of revenues
over expenditures
$ —
32,888
1,042
30,466
Fund balance, at beginning of year
46,013
15,547
Fund balance, at end of year
$
78,901
46,013
95
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
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, 2009
(With financial information for the year ended June 30, 2008)
96
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes
$ 3,470
3,675
205
3,473
Investment income
230
363
133
517
Total revenues
3,700
4,038
338
3,990
Expenditures:
Service district maintenance:
Personnel services
1,000
930
70
872
Professional services
2,000
—
2,000
370
Support goods and services
700
17
683
101
Total expenditures
3,700
947
2,753
1,343
Excess of revenues
over expenditures
$ —
3,091
3,091
2,647
Fund balance, at beginning of year
10,612
7,965
Fund balance, at end of year
$
13,703
10,612
96
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, 2009
(With financial information for the year ended June 30, 2008)
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
Change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
97
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
$ 13,230
15,477
2,247
32,272
—
—
—
23,191
13,230
15,477
2,247
55,463
8,500
8,500
—
5,500
—
164
(164)
709
8,500
8,664
(164)
6,209
4,730
6,813
2,083
49,254
(66,500)
(66,500)
—
(66,500)
$ (61,770)
(59,687)
2,083
(17,246)
643,288
660,534
$
583,601
643,288
97
1
1
1
1
1
1
1
A
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, 2009
(With financial information for the year ended June 30, 2008)
98
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
Revenues:
Special assessments
$ 19,160
33,716
14,556
35,657
Investment income
900
1,870
970
2,257
Total revenues
20,060
35,586
15,526
37,914
Expenditures:
Debt service:
Support goods and services
13,110
164
12,946
85
Interest
6,950
6,949
1
7,778
Total expenditures
20,060
7,113
12,947
7,863
Excess of revenues over
expenditures
$ —
28,473
28,473
30,051
Fund deficit, at beginning of year
(110,16])
(140,212)
Fund deficit, at end of year
$ (81,688)
(110,161)
98
1
1
1
1
[1
I
F1
DEBT SERVICE FUNDS
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
Equity in central treasury
KODIAK ISLAND BOROUGH
Debt Service Fund
Other
Balance Sheets
June 30, 2009
(With financial information at June 30, 2008)
Assets
Liabilities and Fund Balances
Total liabilities
Fund balance:
Unreserved
2009
2008
169,650
169,650
KODIAK ISLAND BOROUGH
Debt Service Fund
Other
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2009
(With financial information at June 30, 2008)
100
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
Revenues:
Investment income $
—
880
880
8,180
Expenditures
—
—
—
—
Excess of revenues over expenditures
—
880
880
8,180
Other financing sources (uses):
Transfers out:
Education and Health Debt Service Fund
(10,000)
(10,000)
—
—
Various Borough Capital Projects Fund
(160,530)
(160,530)
Net other financing sources (uses)
(170,530)
(170,530)
—
—
Change in fund balance $
(170,530)
(169,650)
880
8,180
Fund balance, at beginning of year
169,650
161,470
Fund balance, at end of year
$
—
100
NONMAJOR CAPITAL PROJECTS FUNDS
The Various Borough Projects Fund accounts for general
government construction projects not accounted for in other funds.
The State Capital Grants Fund accounts for capital impro%
projects relating to grants received from the State of Alaska.
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Combining Balance Sheet
June 30, 2009
(With financial information at June 30, 2008)
101
Various
State
Borough
Capital
Assets
Projects
Grants
2009
2008
Equity in central treasury
S 1,360,381
158,852
1,519,233
7,927
Receivables:
State of Alaska
-
29,562
29,562
237,017
Federal government
-
62,034
62,034
169,414
Total
$ 1,360,381
250,448
1,610,829
414,358
Liabilities and Fund Balances
Liabilities:
Accounts payable
506,596
26,927
533,523
213,471
Retainages payable
2,846
2,531
5,377
17,978
Due to other funds
-
-
-
90,000
Unearned revenues
322,088
-
322,088
-
Total liabilities
831,530
29,458
860,988
321,449
Fund balances:
Unreserved - Undesignated
528,851
220,990
749,841
92,909
Total
S 1,360,381
250,448
1,610,829
414,358
101
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficit)
Year ended June 30, 2009
(With financial information for the year ended June 30, 2008)
Revenues:
Intergovernmental:
State sources
Federal sources
Investment income
Other
Total revenues
Expenditures:
General government:
General and administration
Capital improvements:
Schools
General
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Other financing sources:
Transfers in
Transfers out
Net other financing sources (uses)
Change in fund balances
Fund balances (deficit), at beginning of year
Fund balances, at end of year
Various
State
Borough
Capital
Projects
Grants
2009
2008
$ 771,408
607,526
1,378,934
408,741
550,489
401,830
952,319
1,113,593
7,582
12,596
20,178
535
—
—
—
200,000
1,329,479
1,021,952
2,351,431
1,722,869
—
—
—
148,312
1,719,484
289,085
2,008,569
1,008,346
672,320
604,786
1,277,106
677,865
2,391,804
893,871
3,285,675
1,834,523
(1,062,325)
128,081
(934,244)
(111,654)
3,028,281
—
3,028,281
—
(933,009)
—
(933,009)
—
2,095,272
—
2,095,272
—
1,032,947
128,081
1,161,028
(111,654)
(504,096)
92,909
(411,187)
204,563
$ 528,851
220,990
749,841
92,909
102
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
1
f
r
Operating revenues:
Solid waste collection
Solid waste disposal
Other
KODIAK ISLAND BOROUGH
Enterprise Funds
Municipal Solid Waste Collection and Disposal
Schedule of Revenues, Expenses, and
Changes in Net Assets
Budget and Actual
Year ended June 30, 2009
(With financial information for the year ended June 30, 2008)
Total operating revenues
Operating expenses:
Personnel services
Solid waste collection
Refuse disposal
Contracted services
Maintenance and repairs
Landfill closure and postclosure costs
Depreciation
General and administration
Recycling services
Contributions
Total operating expenses
Operating income (loss)
Other income :
Investment income
Income (loss) before transfers
Other financing sources:
Transfers in
'
Income (loss) before
extraordinary item
'
Extraordinary item
Variance with
Change in net assets
Net assets, at beginning of year
Final Budget
Net assets, at end of year
Final
t
103
2009
Variance with
Final Budget
Final
Positive
2008
Budget
Actual
(Negative)
Actual
$ 2,838,920
2,559,903
(279,017)
2,839,830
970,300
1,044,092
73,792
1,071,941
-
-
-
1,920
3,809,220
3,603,995
(205,225)
3,913,691
728,736
726,967
1,769
938,916
1,584,200
1,534,673
49,527
1,257,731
320,000
276,878
43,122
346,396
346,000
187,969
158,031
446,764
125,500
34,483
91,017
77,960
240,000
348,634
(108,634)
819,143
348,326
270,153
78,173
265,885
271,243
227,757
43,486
231,631
200,000
233,768
(33,768)
231,085
12,000
10,876
1,124
13,315
4,176,005
3,852,158
323,847
4,628,826
(366,785)
(248,163)
118,622
(715,135)
150,000
178,651
28,651
247,788
(216,785 )
(69,512)
147,273
(467,347
12,000
6,450
(6,450)
6,450
(204,785)
(63,062)
140,823
(460,897)
-
336,458
336,458
-
$ (204,785)
273,396
478,181
(460,897)
4,354,676
4,815,573
$
4,628,072
4,354,676
103
KODIAK ISLAND BOROUGH
Enterprise Funds
Hospital Facilities
Schedule of Revenues, Expenses, and
Changes in Net Assets
Budget and Actual
Year ended June 30, 2009
(With financial information for the year ended June 30, 2008)
2009
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
CHC reimbursements
Investment income
Interest expense
Income (loss) before transfers
Other financing sources (uses):
Transfers in
Transfers out
Net other financing sources (uses)
Change in net assets
Net assets, at beginning of year
Net assets, at end of year
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
1
i
1
i
1
i
$ 720,000 720,000 — 720,000
5,000
5,386
(386)
5,871
5,000
—
5,000
5,825
1,276,560
929,555
347,005
988,579
14,500
842
13,658
12,949
1,301,060
935,783
365,277
1,013,224
(581,060)
(215,783)
365,277
(293,224)
(108,000)
(108,000)
—
(57,141)
—
2,855,835
2,855,835
5,330
10,413
5,083
21,999
(51,750)
(51,752)
(2)
(54,285)
(735,480)
2,490,713
3,226,193
(382,651)
66,500
759,040
692,540
66,500
(239,712)
—
239,712
(200,000)
(173,212)
759,040
932,252
(133,500)
$ (908,692)
3,249,753
4,158,445
(516,151)
16,973,988
17,490,139
$
20,223,741
16,973,988
I
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104
1
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1 105
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, 2009
(With financial information for the year ended June 30, 2008)
1
2009
Variance with
Final Budget
Final
Positive
2008
Budget Actual
(Negative)
Actual
Operating revenues:
Lease income
$ 1,597,031 1,598,260
1,229
1,616,992
Other
- 50
50
-
Total operating revenues
1,597,031 1,598,310
1,279
1,616,992
Operating expenses:
'
Personnel services
314,210 298,613
15,597
334,442
Depreciation
744,294 713,144
31,150
726,745
General and administration:
Cleaning and janitorial
41,300 50,131
(8,831)
49,015
Heating
197,000 189,642
7,358
216,285
Electrical
210,000 171,266
38,734
182,849
Plumbing
193,000 64,603
128,397
33,871
Air conditioning
16,000 1,267
14,733
6,028
Elevators
2,500 2,797
(297)
2,337
Miscellaneous
27,200 91,641
(64,441)
73,797
Total operating expenses
1,745,504 1,583,104
162,400
1,625,369
Operating income (loss)
(148,473) 15,206
163,679
(8,377)
Other income (expense):
Investment income '
66,780 84,871
18,091
161,933
Interest expense
(377,300) (377,300)
(402,063)
Income (loss)
'
before extraordinary item
(458,993) (277,223)
181,770
(248,507)
Extraordinary item
- 96,230
96,230
-
t Change
in net assets
$ (458,993) (180,993)
278,000
(248,507)
Net assets, at beginning of year
10,525,219
10,773,726
Net assets, at end of year
$ 10,344,226
10,525,219
1
1 105
KODIAK ISLAND BOROUGH
Enterprise Funds
911 Services Fund
Schedule of Revenues, Expenses, and
Changes in Net Assets (Deficit)
Budget and Actual
Year ended June 30, 2009
(With financial information for the year ended June 30, 2008)
2009
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
Net assets (deficit), at beginning of year
Net assets, at end of year
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
2008
Actual
$ 69,000
52,654
(16,346)
54,925
28,800
3,000
25,800
3,000
—
422
(422)
190
41,320
39,621
1,699
104,790
70,120
43,043
27,077
107,980
(1,120)
9,611
10,731
(53,055)
1,320
$ 200
38
9,649
(9,649)
(1,282) 2,444
9,449 (50,611)
40,962
(9,649)
1
F
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106
SUPPLEMENTARY SCHEDULES
P-J
KODIAK ISLAND BOROUGH
SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY
June 30, 2009
Annual principal and interest requirements on General Obligation Refunding and Construction Bonds.
Year Principal Interest
2010
$ 2,680,000
$ 1,349,623
$ 4,029,623
2011
2,745,000
1,286,510
4,031,510
2012
2,500,000
1,168,195
3,668,195
2013
2,595,000
1,066,407
3,661,407
2014
2,710,000
960,432
3,670,432
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
$ 32,245,000
$ 11,827,973
$ 44,072,973
Total
107
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2000 SERIES E
Principal
RETIREMENT SCHEDULE
June 30, 2009
Fiscal
2000 E BOND ISSUE
due
This issue, dated December 12, 2000, was issued under a book entry system registered in the name of Cede &
due
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
rate
rendered by bond council, Wohlforth, Vassar, Johnson & Brecht of Anchorage, Alaska. This bond was
February 01
issued to repair the high school roof.
Total
2010
Interest
Principal
Interest
Fiscal
Interest
due
due
due
year
rate
August 01
February 01
February 01
Total
2010
5.00%
$ 8,875.00
$ 175,000
$ 8,875
$ 192,750
2011
5.00%
4,500
180,000
4,500
189,000
$ 13,375
$ 355,000
$ 13,375
$ 381,750
108
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2000 SERIES F
RETIREMENT SCHEDULE
June 30, 2009
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.
Interest Principal Interest
Fiscal Interest due due due
year rate August 01 February 01 February 01 Total
2010 7.10% $ 11,045 $ 150,000 $ 11,045 $ 172,090
2011 7.15% 5,720 160,000 5,720 171,440
$ 16,765 $ 310,000 $ 16,765 $ 343,530
1
1
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109
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2004 SERIES C
RETIREMENT SCHEDULE
June 30, 2009
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 be used to
Principal due
Interest due
Interest due
Fiscal year
Interest rate
July 01
2010
4.250%
$ 163,573
2011
4.250%
155,817
2012
4.000%
147,636
2013
4.000%
139,136
2014
4.000%
130,836
2015
4.100%
122,136
2016
4.250%
113,136
2017
4.300%
103,501
2018
4.400%
93,194
2019
4.500%
82,229
2020
4.500%
70,569
2021
4.625%
58,082
2022
4.750%
45,032
2023
4.800%
31,041
2024
4.800%
15,960
$ 7,485,000
$ 1,471,878
$ 1,471,878
Principal due
Interest due
July 01
January 01
Total
$ 365,000
$ 163,573
$ 692,146
385,000
155,817
696,634
400,000
147,636
695,272
415,000
139,136
693,272
435,000
130,836
696,672
450,000
122,136
694,272
470,000
113,136
696,272
485,000
103,501
692,002
510,000
93,194
696,388
530,000
82,229
694,458
555,000
70,569
696,138
580,000
58,082
696,164
605,000
45,032
695,064
635,000
31,041
697,082
665,000
15,960
696,920
$ 7,485,000
$ 1,471,878
$ 10,428,756
1
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1 KODIAK ISLAND BOROUGH
I
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1
I III
GENERAL OBLIGATION BOND, 2004 SERIES D
RETIREMENT SCHEDULE
June 30, 2009
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.
Interest due
Principal due
Interest due May
Fiscal year
Interest rate
November 01
November 01
01
Total
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
$ 2,125,182
$ 9,605,000
$ 1,831,789
$ 13,561,971
I
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1
I III
KODIAK ISLAND BOROUGH I
GENERAL OBLIGATION BOND, 2008 SERIES A
RETIREMENT SCHEDULE
June 30, 2009
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.
Interest due
Principal due
Interest due
Fiscal year
Interest rate
October 01
April 01
April 01
Total
2010
5.00%
S 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
2014
5.00%
5.00%
160,105
152,605
300,000
320,000
160,105
152,605
620,210
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
$ 2,046,045
S 7,750,000
$ 2,046,045
$ 11,842,090
112
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1
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2009 SERIES A
RETIREMENT SCHEDULE
June 30, 2009
2009 BOND ISSUE
This issue, dated April 9, 2009, 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 General
Obligation Bond, 2009 Series A. This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was
rendered by bond council, Birch, Horton, Bitmer and Cherot of Anchorage, Alaska. This bond was issued to refund the
1998 Series A Bond issue.
Total
$ 1,503,676
1,503,200
1,501,800
1,503,400
1,502,800
$ 7,514,876
1 113
Interest due
Principal due
Interest due
Fiscal year
Interest rate
August 1
February I
February 1
2010
1.32%
$ 83,876
$ 1,285,000
$ 134,800
2011
2.09%
109,100
1,285,000
109,100
2012
2.54%
83,400
1,335,000
83,400
2013
3.08%
56,700
1,390,000
56,700
2014
3.54%
28,900
1,445,000
28,900
$ 361,976
$ 6,740,000
$ 412,900
Total
$ 1,503,676
1,503,200
1,501,800
1,503,400
1,502,800
$ 7,514,876
1 113
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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.
I
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KODIAK ISLAND BOROUGH
Net Assets by Component
Last Five Fiscal Years
(accrual basis of accounting)
Governmental activities:
Invested in capital assets, net of related debt
Unrestricted
Total governmental 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
2009
$ 61,154,204
$ 62,716,326
$ 73,425,394
$ 25,127,779
$ 49,534,766
45,052,197
45,653,357
37,640,716
89,853,794
70,140,406
$ 106,206,
$ 108,369,683
$ 111,066,110
$ 114,981
$ 119,675,172
$ 39,878,785
(7,263,950)
$ 32,614,835
$ 101,032,989
37,788,247
$ 138,821,236
$ 38,588,510
(6,133,853)
$ 32,454,657
$ 101,304,836
39,519,504
$ 140,824,340
$ 38,623,762
(5,503,362)
$ 33,120,400
$ 34,706,597
(2,862,363)
$ 31,844,234
$ 36,623,290
(1,427,251)
$ 35,196,039
$ 112,049,156
32,137,354
$ 144,186,510
The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 5 years of data.
$ 59,834,376
86,991,431
$ 146,825,807
$ 86,158,056
68,713,155
$ 154,871,211
114
it
KODIAK ISLAND BOROUGH
Changes in Net Assets
Last Five Fiscal Years
(accrual basis of accounting)
Fiscal Year
2005
2006
2007
2008
2009
Expenses
Governmental activities:
General government
$ 7,133,461
S 3,984,390
$
4,755,754
$
4,226,759
S
3.723,964
Public safety
-
509.697
579,710
Emergency preparedness
25,850
8,598
10,384
13,841
14,988
Community and economic development
509,680
784,002
786,614
1.105,156
908,501
Health and sanitation
387,619
403.866
414,144
449,792
371,673
Education, culture, and recreation
185.993
164,053
161,247
183,747
248,571
Service district maintenance
347,934
336,385
362,189
378,661
398,2)9
Education, culture, and recreation
10,207,757
10,831,588
10,788,188
11 .524,160
12
Interest on long -term debt
1,101,598
1,700,089
1,290.216
1,270,423
1.408,045
Total governmental activities expenses
19.899,892
18,212,971
18,568.736
19.662,236
20.007,800
Business -type activities:
Municipal solid waste collection and disposal
3,362,348
3,446,453
2,888,821
4.628,826
3,852,158
Hospital facilities
1,34087
1,304,583
1,297.419
1.124,650
1,095,535
Kodiak fisheries research center
1.878,788
1,856,875
1,889,750
2.027.432
1.960,404
911 services
69.178
57,194
64,140
107,980
43,043
Total business-type activities expenses
6,655,301
6,665,105
6,140,130
7.888,888
6,951,140
Total primary goverment expenses
S 26,555,193
S 24,878,076
$
24.708,866
$
27. 551,124
S
26,958,940
Program Revenues
Governmental activities:
Charges for services:
General government
S 367.530
$ 311.802
S
1.058,330
$
436,284
S
705,166
Public safety
-
-
-
-
12,361
Community and economic development
21,886
68.867
148,682
-
Health and sanitation
Education, culture, and recreation
56,704
-
108,218
-
-
7,370
-
-
Service district maintenance
20.000
20,000
20,015
28,345
2500
Primary and secondary education
-
95,025
-
-
-
Operating grants and contributions
721,453
1,240,547
1.93507
1,911,246
2.543,254
Capital grants
2,917,160
298.852
184,922
1.926,465
2,331,253
Total governmental activities program revenues
4,104.733
2,074.444
3,267,821
4,458,392
5,617,034
Business -type activities:
Charges for services:
Municipal solid waste collection and disposal
3,141,856
3,665.289
3,932,985
3,911,771
3,603,995
Hospital facilities
1,153
1,153„333
1,081.110
720,000
3,575,835
Kodiak fisheries research center
1,566,686
1,572.474
1.581,850
1,614,532
1,598.260
911 services
26,721
65,614
62,698
54.925
52,654
Total business -type activities program revenues
5,888,596
6,456.710
6,658,643
6,301.228
8.830,744
Total primary government program revenues
S 9,993,329
$ 8,531,154
$
9,926.464
$
10.759,620
$
14,447,778
Net(expense) /revenue
Governmental activities
S (15,795,159)
S (16.138,527)
S
()5,300,915)
$
(15.203
$
(14,390,766)
Business -type activities
(766,705)
(208,395)
518,513
(1387,660)
1,879,604
Total primary government net expense
S (16.561.864)
$ (16,346,922)
$
(14,782,402)
S
(16,791,504)
S
(12.511,162)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes
$ 9.063,729
S 9,807,551
$
9,754,916
S
10.118,602
$
10.592,258
Severance taxes
1,005,539
1,186,908
1,316,689
1,436,210
1,311,188
Unrestricted grants and contributions
2,384
3,482,351
3,242,740
3,144,750
4,214,617
Land sales
-
-
-
-
26,369
Investment earnings
1,750 321
2,798,391
3,745,990
3.912.145
2.082,615
Other
55,692
779,328
(225.636)
380.550
226,586
Transfers
170.602
247,280
162,643
127,050
(765,490)
Extraordinary item
-
-
-
-
1,396,222
Total governmental activities
$ 14,430,421
S 18,301,809
$
17,997.342
$
19,119,307
$
19,084,365
Business -type activities:
Investment earnings
70,812
161,892
274,126
434,164
273,973
Other
-
391,895
35,747
4,380
50
Transfers
(170,602)
(247,280)
(162,643)
(127,050)
765,490
Extraordinary item
432,688
Total business -type activities
(99,790)
306
147,230
311,494
1,472,201
Total primary goverment
S 14,330.631
$ 18,608,316
S
18.144,572
$
19,430,801
S
20,556,566
Change in Net Assets
'
Governmental activities
$ (1,364,738)
S 2.163,282
$
2,696,427
S
3,915,463
$
4,693,599
Business -type activities
(866,495)
98,112
665,743
(1,276.166)
3,351,805
Total primary government
S (2,231,233)
S 2,261,394
$
3,362,170
$
2,639,297
$
8,045.404
The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why
there is only 5 years of data.
115
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1 116
KODIAK ISLAND BOROUGH
Fund Balances of Governmental Funds
Last Five Fiscal Years
>�
(modified accrual basis of accounting)
Fiscal Year
2005 2006
2007
2008
2009
General fund
Reserved
$
- $ - $
554,975
$
1,341,798
$
1,261,581
Unreserved
Total general fund
$
1,813,013 2,026,113
1,813,013 $ 2,026,113 $
2,238,338
$
1,888,681
$
1,862,708
3,124,289
2,793,313
3,230,479
All other governmental funds
Reserved
$
8 $ 7,742,903 $
7,367,644
$
6,969,951
$
6,206,906
Unreserved, reported in:
Special revenue funds
34,055,115 36,837,895
35,316,321
36,286,898
37,292,771
Debt service funds
(189,824) 76,898
101,090
159,788
5,938
Capital projects funds
21,412,256 20,810,819
21,711,585
25,805,778
12,516,511
Total all other governmental funds
$
63,368,369 $ 65,468,515 $
64,496,640
$
69,222,415
$
56,022,126
The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 5 years of
data.
i
1
1
t
1
1
1 116
KODIAK ISLAND BOROUGH
Changes in Fund Balances of Governmental Funds
Last Six Fiscal Years
(modified accrual basis of accounting)
The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 6 years of data
117
Fiscal Year
2004
2005
2006
2007
2008
2009
Revenues
Taxes
S 8,016,323
S 9,063,729
S 9,833,846 S
9,750,682
10,254,477
10,565,685
Intergovernmental:
State sources
2,121,420
2,169,803
3,368,491
4,012,647
4.428,472
5,710,190
Federal sources
1,245,337
3,853,348
1,766,926
1
2.553,990
3,378,934
Land sale proceeds
9,206
22,738
177,164
47,087
19,458
30,561
Severance taxes
799,693
1,005,539
1,186,908
1,316,689
1,436,210
1,311,188
Licenses, permits, fees, and other local revenues
764,913
692,540
820,286
690,962
658,381
742,527
Other revenues
222,837
75,841
125,040
633,925
353,850
418,741
Investment earnings
866,143
1,772,893
2,803,466
3,751,609
3,918,008
2.088,915
Total revenues
14,045,872
18,656,431
20,082,127
21,621,004
23,622.846
24,246,741
Expenditures
General government
2,118,166
2,713,633
3,950,927
4,504,052
3.818,544
4,067,024
Fire services
864,703
425,506
-
-
385,529
460.826
Emergency preparedness
48,755
23,521
6,098
7,884
5,713
12,488
Community and economic development
536,111
509,680
784,002
786,614
923,203
908,501
Health and sanitation department
331,884
329,738
363,520
373,132
387,053
333,747
Education. culture, and recreation
217,759
185,993
161,633
158,161
183,747
248,571
Maintenance and operations
567,094
698,119
-
-
-
-
Service district maintenance
425,712
347,934
336,385
498,539
374,320
398,219
Primary and secondary education
7,721,706
7,973,035
8,430,840
8,387,440
9323,412
9
Fern Fuller trust
24,500
22,547
-
-
-
-
Capital outlay:
Schools
131,324
68,109
464,142
1,436,639
7,029,628
14,857,064
General
656,423
2,972,174
332,398
373,038
887,189
1,277,106
Debt service:
Principal
1,260,167
1,784,859
1,814,553
2,100,361
2205,441
2,495,056
Interest
644,046
984,766
1,584,763
1,336,349
1.263,176
1,578,408
Other charges -bond issuance costs
-
43,661
-
-
-
68,635
Total expenditures
15,548,350
19,083,275
18,229,261
19,962,209
26,586,955
36,662,263
Excess ofrevenues over (under) expenditures
(1,502,478)
(426,844)
1,852,866
1,658,795
(1964,109)
(12,415,522)
Other Financing Sources (Uses)
Proceeds from sales of bonds
-
20,350,000
-
-
8,000.000
-
Bond premium
-
121,590
-
-
-
-
Refunding bonds issued
-
-
-
-
6.740.000
Payment to refunded bond escrow agent
(6,865.467)
Transfers in
3,605,614
1,800,212
1,751,182
2,626,853
2.966,610
6,144.301
Transfers out
(1,961,054)
(1,629,610)
(1,503,902)
(2,464,210)
(2,839,560)
(6,909,791)
Total other financing sources(uses)
1,644,560
20,642,192
247,280
162
8,127,050
(890,957)
Net change in fund balances
S 142,082
S 20,215,348
S 2,100,146 S
1,821,438
5,162,941
(13,306,479)
Debt service as a percentage of noncapital
N/A
21.26%
24.22 %
23.35 %
22.82 %
25.28 %
expenditures
The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 6 years of data
117
KODIAK ISLAND BOROUGH
General Revenues by Source )
Last Ten Fiscal Years
(a) Includes general fund only.
Source: Borough general ledger
118
Licenses,
later -
Fiscal
Permits
Governmental
Investment
Operating
Mitcdlaneous
Year
Taxes
and Fees
Revenue
Income
Tramfers
Revenue
Total
2000
8,057,781
92,609
1,770,038
358,351
129,829
—
10,408,608
2001
8,135,184
95,129
2,135,483
583,633
18,154
44,945
11.012,528
2002
8,017.344
95,857
3,397,240
294,675
200,000
140,901
12,146,017
2003
8,028,513
153,727
2,681460
171,532
1,000,000
—
12.037,232
2004
8,165326
187,898
2,010,431
105,812
850.000
—
11.319.467
2005
9,378,816
161,621
1,925.405
265,392
—
—
11,731,234
2006
10,257,023
171,962
2.369,185
469,913
—
—
13,268,083
2007
10,218,016
78,720
3,325,899
399,149
—
82,604
14,104,388
2008
10,792,741
100,256
3,276.741
544.926
—
—
14.714,664
2009
10,864,441
65,417
4.461.624
292,825
—
131,944
15.816,251
(a) Includes general fund only.
Source: Borough general ledger
118
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
119
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
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
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
10.03
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
770M2,367
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
805,687,814
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
2009
765,152.958
817,641,308
105.320.027
233,623,664
870,472,985
1,051.264.972
11.61
82.80
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
119
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
1
1
1
� I
1
1
1
1
1 -�
r,
r,
KODIAK ISLAND BOROUGH
Direct and Overlapping Property Tax Rates and
Contributions to the School District
(per S) 000 of Assessed Value)
Last Ten Fiscal Years
Direct
Rate Overlapping Rates
Woodland' Trinity' Missiod
Fiscal
Contributions to the School District
Acres
islaads
Lake
Millage
Year
Value
Contribution
Equivakat
20W
715,699,035
Year
Borough
City
Street
Street
Tide
2002
Road Services Areas'
6,331,440
8.42
Fire Areas'
760,451,857
Ended
Basic
of
Lighting
Lighting
Gate
Mouashka
Service
Bay View
Womeas
Service
Womens
8,632,440
June 30,
Rate
Kodiak
Area
Area
Area
Bay
District l
Road
Bay
Area No. f
Bay
Airport
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
115
-
2002
9.25
2.00
-
-
-
1.50
1.25
1.00
2.00
1.50
1.25
-
2003
9.25
2.00
-
-
-
1.50
1.00
1.00
2.00
1.50
1.25 -
-
2004
915
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
115
2006
11.00
2.00
-
0.50
1.00
2.50
1.25
1.00
2.00
1.50
1.25
115
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
1.25
1.25
2009
10.50
2.00
0.25
0.50
1.00
2,50
1.50
1.00
2.00
1_50
1.25
1.25
Note: The maximum mill rate allowed by State code is 30 mills
' Overlapping rates are those of local governments that apph 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.
120
Contributions to the School District
Fiscal
Assessed
Amount of
Millage
Year
Value
Contribution
Equivakat
20W
715,699,035
5,556.310
7.76
2001
748.755,533
5.966,420
7.97
2002
752.049,060
6,331,440
8.42
2003
760,451,857
7,581,989
9.97
2004
770,982,367
7,995,040
10.37
2005
783.907,451
8,332,440
10.63
2006
798,779,349
8,632,440
10.81
2007
805,681,814
8,671160
10.76
2008
835,525.537
9420,412
11.27
2009
870472,985
10,243,618
11.77
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 apph 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.
120
Horizon Lines of Alaska LLC(a)
9,059,159
KODIAK ISLAND BOROUGH
8,898.859
Leisnoi
6,801.735
North Pacific Seafoods(b)
11,121.991
Principal Property Tax Payers
Western Alaska Fisheries
13,548,984
Safeway /MBPA
9,034,762
Current Year and Ten Years Ago
10.2% S 109,008,224
2009
2000
Percentage
Percentage
Taxable
of Total Borough
Taxable
of Total Borough
Assessed
Assessed
Assessed
Assessed
Taxpayer
Value
Rank Value
Value
Rank
Value
Ocean Beauty Seafoods Inc
S 16,237.441
1 1.6%
S 10,270,641
6
1.4%
Westward Seafoods, Inc
11.852.090
2 1.2%
Alaska Communications Systems (c)
11,645,093
3 1.2%
11,728.531
4
1.6% f99f,479,tM5 Toiat Assessed Values 2009
International Seafoods of AK
10,879,502
4 1.1%
16,796,047
1
2.3%
Wal -Mart Real Est Bus Trust
9.987,787
5 1.0%
Brechan Enterprises Inc
9,569,530
6 1.0%
Trident Seafoods Corp
9,028,842
7 0.9%
11,747.515
3
1.6%
Mill Bay PLua Assoc LTD
8,648,400
8 0.9%
f7[5,699,075 Total Assessed Values 2000
GCI
7,563,488
9 0.8%
Koncwr
6,797,500
10 0.7%
Horizon Lines of Alaska LLC(a)
9,059,159
Kodiak Fishmeal Co
8,898.859
Leisnoi
6,801.735
North Pacific Seafoods(b)
11,121.991
Tyson Seafoods
Western Alaska Fisheries
13,548,984
Safeway /MBPA
9,034,762
Total S 102,209.673
10.2% S 109,008,224
Source: Borough tax records.
(a) In 1999 company name was CSX Lines LLC
(b) Alaska Pacific Seafoods combined with North Pacific Seafoods in 2006. It was ranked in 5th place in 2000
(c) In 2000 company name was T.U. of the Northland.
7 1.3%
9 1.2%
10 1.0%
5 1.6%
2 1.9%
8 1.3%
15.2%
121
KODIAK ISLAND BOROUGH
Property Tax Levies and Collections
Last Ten Fiscal Years
Source: Borough general ledger
122
Collected within the
Fiscal Year
Taxes Levied
Fiscal Year of the Levy
Collections
Total Collections to Date
Ended
for the
Percentage
in Subsequent
Percentage
June 30,
Fiscal Year
Amount
of Levy
Years
Amount
of Levy
2000
7,743,649
7,507,018
96.9
175,066
7,682,084
991
2001
8,164,127
7,912,859
96.9
204,458
8,117,317
99.4
2002
8,411,173
8,313,881
98.8
362,377
8,676,258
103.2
2003
8,395,117
8,167,437
97.3
178,885
8,346,322
99.4
2004
8,462,404
8,125,629
96.0
69,831
8,195,460
96.8
2005
8,785,412
8,139,198
92.6
521,516
8,660,714
98.6
2006
10,166,967
9,901,965
97.4
292,820
10,194,785
100.3
2007
9,957,089
9,797,780
98.4
96,675
9,894,455
99.4
2008
10,342,728
10,257,340
99.2
33,122
10,290,462
99.5
2009
10,196,998
10,013,911
98.2
—
10,013,911
98.2
Source: Borough general ledger
122
KODIAK ISLAND BOROUGH
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
123
a
1
t
j
Less Debt
Net General
Net General
,
Fiscal
Assessed Gross Service
Bonded
Per
Debt Per
Year
Population Value Bonded Debt Fund
Debt
Capita
Assessed Value
2000
13,989 (a) 715,699,035 17,025,000 272,651
16,752,349
1,198
2.34%
2001
13,913 (a) 748,755,533 17,690,000 344,942
17,345,058
1,247
2.32%
2002
13,566 (a) 752,049,060 16.615,000 448,065
16,166,935
1,192
2.15%
2003
13,645 (a) 760,451,857 15,620,000 17,879
15,602,121
1,143
2.05%
2004
13,959 (a) 770,982,367 14385,000 33,915
14,351,085
1,028
1.86 %.
2005
13,538 (b) 783,907,451 32,965,000 (348,233)
- 33,313,233
2,461
4.25%
2006
13,638 (c) 798,779,349 31.155,000 (81,511)
31,236,511
2,290
3.91%
'
2007
13,506 (a) 805,681,814 29.060,000 (60,380)
29,120,380
2,156
3.61%
2008
13,568 (a) 835,525,537 34,860,000 (9,862)
34,869,862
2,570
4.17%
2009
13,373 (a) 870,472,985 32.245,000 5,938
32,239,062
2,411
3.70%
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.
123
a
1
t
j
1
1
1
1
f
1
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Computation of Direct and Overlapping Debt
June 30, 2009
(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 Ievied to
pay bonds.
Sources: Borough general ledger and City of Kodiak records.
124
Percentage
Kodiak Island
Net Debt
Applicable to this
Borough
Outstanding
Governmental
Share of
(a)
Unit (b)
Debt (c)
Kodiak Island Borough:
General obligation bonds
$ 32,450,000
100% $
32,450,000
City of Kodiak:
General obligation bonds
7,865,000
100%
7,865,000
Total
$ 40,315,000
$
40,315,000
(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 Ievied to
pay bonds.
Sources: Borough general ledger and City of Kodiak records.
124
KODIAK ISLAND BOROUGH
Legal Debt Margin Information
Last Five 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).
125
1
1
1
1
1
1
i
1
1
1
1
1
1
1
1
1
1
i
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.
126
Total general
Ratio of
governmental
debt service
Fiscal
Interest
Total debt
expenditures
to general
year
Principal (a)
and fees
service
and transfers
expenditures
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
2009
2,495,056
1,571,295
4,066,351
15,675,434
25.9
(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.
126
KODIAK ISLAND BOROUGH
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
General
Obligation
Bonds
17,025,000
17,690,000
16,615,000
15,620,000
14,385,000
32,965,000
31,155,000
29,060,000
34,860,000
32,245,000
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.
127
Total
Percent of
Notes
Primary
Personal
Per
Payable
Government
Income
Capita
2,823,480
19,848,480
5.32%
1,419
2,531,150
20,221,150
5.29%
1,453
1,911,221
18,526,221
4.88%
1,308
1,241,254
16,861,254
4.29%
1,215
1,262,123
15,647,123
3.78%
1,133
1,270,210
34,235,210
7.72%
2,542
1,582,188
32,737,188
6.96%
2,400
1,636,924
30,696,924
6.23%
2,273
1,768,660
36,628,660
*
2,700
1,864,503
34,109,503
*
2,551
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.
127
I KODIAK ISLAND BOROUGH
Sources:
(a) State of Alaska, DCRA certified population.
(b) State of Alaska Department of education using www.eed. state .ak.us /stats /OuickFacts/ADMpdf.
(c) Department of Labor using www.almis.labor.state.us.
(d) Per Capita Personal Income and Personal Income figures are not yet available for 2007 to 2008.
1
1
G
1
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)
2000
13,989
373,164,000 26,695
2,810
13.4
2001
13,913
382,227,000 27,914
2,774
10.9
2002
13,566
379,370,000 27,901
2,821
18.2
2003
13,645
393,263,000 29,671
2,750
10.3
2004
13,959
414,367,000 31,597
2,677
10.6
2005
13,538
443,361,000 34,199
2,678
9.5
2006
13,638
470,180,000 36,190
2,718
6.7
2007
2008
13,506
13,568
492,637,000 37,951
NA (d)
2,636
2,671
6.2
9.3
-
2009
13,373
NA (d)
2,598
8.2
Sources:
(a) State of Alaska, DCRA certified population.
(b) State of Alaska Department of education using www.eed. state .ak.us /stats /OuickFacts/ADMpdf.
(c) Department of Labor using www.almis.labor.state.us.
(d) Per Capita Personal Income and Personal Income figures are not yet available for 2007 to 2008.
1
1
G
1
128
KODIAK ISLAND BOROUGH
Average Monthly Employment & Earnings
Last Three Fiscal Years
'Data from htto: / /almis.labor.state.ak.us
Note: No principal employer data available from Department of Labor.
Note: No data available before 2005.
129
Fiscal Year 2005
Fiscal Year 2006
Fiscal Year 2007
Average
Average
Average
Average
Average
Average
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
Number
Number
Business Size
of Businesses
of Businesses
of Businesses
250 to 499 employees
2
4
4
100 to 249 employees
10
8
8
50 to 99 employees
9
9
9
20 to 49 employees
24
27
27
10 to 19 employees
59
58
58
'Data from htto: / /almis.labor.state.ak.us
Note: No principal employer data available from Department of Labor.
Note: No data available before 2005.
129
M= M M == r= M ■r M M r M= i r M
KODIAK ISLAND BOROUGH
MISCELLANEOUS STATISTICAL DATA
Last Ten Fiscal Years
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
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 25.4
25.4
25.6
25.6
25.6
25.6
25.6
25.6
25.6
21.6
Building permits
Permits issued
210
231
220
213
223
205
Value of buildings (thousands)
11,806
12,882
11,934
14,623
17,658
12,689
Fire Protection:
4
1
1
1
1
1
Number of fire stations
2
2
2
2
2
2
Number of employees
I
1
1
l
I
1
Police Protection: none
2,718
2,636
2,671
2,598
41
43
(provided by the City of Kodiak within the city limits and by the State of Alaska outside the city boundaries.)
43
9,300
9,417
9,587
Recreation:
2,200
2,407
2, 105
2,477
24%
26%
Parks (number of acres)
224
224
223
223
223
223
Facilities:
Number of playgrounds
16
16
15
15
15
15
Number of swimming pools
I
1
1
1
I
1
Public Education:
Number of schools:
Kodiak Area Elementary
4
4
4
4
4
4
Kodiak Area Middle School
I
I
1
1
1
I
Kodiak Area High School
1
1
1
1
I
I
Village Schools (a)
8
8
7
7
7
7
Number of support personnel (b)
158
143.27
136.76
136.76
200.99
146.25
Number of teachers (d)
200
178.6
184.3
172.5
227.14
216.89
Number of students
2,810
2,774
2,821
2,750
2,677
2,678
Number of Municipal Employees
37
37
39
39
41
41
Elections:
Number of registered voters
10,100
10,421
10,085
10,101
9,671
9,282
Number voting in last election
3,861
2,521
2,914
2,181
2,599
2,181
Percent of registered voters
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 FY96 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.
130
222 190 190 192
11,928 12,058 33,145 15,007
2 2 2 2
1 1 1 1
223
223
223
223
15
15
15
15
1
I
1
1
4
4
4
4
1
1
1
1
1
1
1
1
8
7
6
7
150.62
202.4
204.8
217.30
205.63
208.52
217.78
202.62
2,718
2,636
2,671
2,598
41
43
43
43
9,300
9,417
9,587
9,599
2,200
2,407
2, 105
2,477
24%
26%
22%
26%
KODIAK ISLAND BOROUGH
Property Value, Construction, and Bank Deposits
Last Ten Fiscal Years
Construction
*Assessed value.
Sources: Borough assessing records and City of Kodiak building department and FDIC.
Property Value*
Commercial
Commercial
Residential
172,709,507
Fiscal
No. of
193,882,996
No. of
2,475,199,399
Deposits in
year
permits
Value
permits
Value
local banks
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
2009
50
34,081,887
147
7
175,141,000
*Assessed value.
Sources: Borough assessing records and City of Kodiak building department and FDIC.
Property Value*
Commercial
Residential
Nontaxable
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
1,996,235,045
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
215,695,225
589,494,919
1,667,462,695
131
1
1
1
1
L
1
1
7
L
KODIAK ISLAND BOROUGH
Full -Time Equivalent Borough Employees by Function/Program
Last Five Fiscal Years
Full -time Equivalent Employees
as of June 30
Function
General Government
Community and Economic Development
Municipal Solid Waste Collection and Disposal
Kodiak Fisheries Research Center
Total
2005
2006
2007
2008
2009
22
23
24
27
31
6
6
5
5
5
8
7
7
7
7
2
2
2
2
2
38
38
38
41
45
Source: Borough Finance Department
The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 5 years of data.
132
KODIAK ISLAND BOROUGH
Operating Indicators by Function
Last Ten Fiscal Years
as of June 30
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Function
9,300
9,417
9,587
9,599
2,181
General Government
2,407
2,105
2,477
23%
24%
Elections
22%
26%
2
2
2
Number of registered voters
10,100
10,421
10,085
10,101
9,671
Number voting in last election
3,861
2,521
2,914
2,181
2,599
Percent of registered voters
38%
24%
29%
22%
27%
Public Safety
2,636
2,671
2,598
217
206
Number of fire stations
2
2
2
2
2
Number of employees
1
1
1
1
1
Community and economic development
11,557
11,444
10,831
10,843
10,212
Zoning compliance permits issued
140
160
162
145
156
Junk cars removed
300
320
320
145
188
Primary and secondary education
Number of students
2,810
2,774
2,821
2,750
2,677
Number of teachers
200
179
184
173
227
Number of support personnel
158
143
137
137
201
Solid waste disposal
Total solid waste disposal in tons
17,000
18,281
19,211
16,821
17,303
Baled waste in tons
12,500
16,871
18,074
11,675
11,353
Scrap metal in tons
1,400
1,411
1,137
1,516
888
Asbestous, cubic yards
800
188
900
667
276
Source: Borough Finance Department
9,282
9,300
9,417
9,587
9,599
2,181
2,200
2,407
2,105
2,477
23%
24%
26%
22%
26%
2
2
2
2
2
1
1
1
1
1
187
150
212
214
203
125
100
58
261
83
2,678
2,718
2,636
2,671
2,598
217
206
209
218
203
146
151
202
205
217
17,253
16,290
16,997
14,730
14,429
11,557
11,444
10,831
10,843
10,212
1,162
416
282
360
205
300
73
166
112
324
133
KODIAK ISLAND BOROUGH
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Culture, Parks and Recreation
Parks (number of acres)
Facilities:
Number of Swimming Pools
Number of playgrounds
Kodiak Island Research Facilities (marine research)
Dorm facility (6 apartmernss)
Sources Supplied by Kodiak Island Borough Department Heads
Nate: No capital asset indicators are available for the library function
A desription of the Kodiak Island Borough's Capithzation and Depreciation policy
is included in the Notes To The Basic Financial Statements
224
224
223
223
223
as of June 30 2004
223
223
223
223
1
16
1
1
2000
2001
2002
2003
2004
2005
2006
2007
2008
2004
Fuasfi�l
GOVERNMENTAL ACTIVITIES
Number of buil dings (teachery housing,schools and office buildings)
20
20
19
19
14
14
20
14
18
18
Vehicles
8
8
8
8
8
8
8
9
10
13
Roads
Streets (miles)
25.4
25,4
25.6
25.6
25.6
25.6
25.6
25.6
25.6 .
25.6
Land area - square miles
7,130
7,130
7,130
7,130
7,130
7,130
7,130
7,130
7,130
7,130
Police: none
(provided by the City of Kodiak within the city l nits and by the State of Alaska outside the
city boundaries)
Fire and Emergency Services
Number of fire stations
2
2
2
2
2
2
2
2
2
2
Number of Emergency response vehicles
7
7
7
7
8
10
11
11
12
11
Emergency Tsunami Shelters
I
I
i
1
1
I
I
I
I
l
BUSINESS - TYPE ACTIVITES
Municipal Solid Waste
Collection Trucks
2
2
2
2
2
2
2
2
3
3
Number of Baler Facilities (Landfills)
1
I
I
1
I
I
I
I
I
I
Cotnmunity Health & Public Services
Mental Health Facilities
Hospital
Culture, Parks and Recreation
Parks (number of acres)
Facilities:
Number of Swimming Pools
Number of playgrounds
Kodiak Island Research Facilities (marine research)
Dorm facility (6 apartmernss)
Sources Supplied by Kodiak Island Borough Department Heads
Nate: No capital asset indicators are available for the library function
A desription of the Kodiak Island Borough's Capithzation and Depreciation policy
is included in the Notes To The Basic Financial Statements
224
224
223
223
223
223
223
223
223
223
1
16
1
1
1
16
1
I
1
16
1
1
1
16
1
1
1
15
1
1
1
IS
1
1
1
15
1
1
1
15
1
1
1
15
1
1
1
15
1
1
134