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CAFR FY2010 KODIAK ISLAND BOROUGH KODIAK, ALASKA KODIAK ISLAND BOROUGH COMPREHENSIVE ANNUAL FINANCIAL REPORT JULY 1, 2009 – JUNE 30, 2010 KODIAK ISLAND BOROUGH Comprehensive Annual Financial Report Year Ended June 30, 2010 Official Issuing Report Karleton G. Short Finance Director KODIAK ISLAND BOROUGH TABLE OF CONTENTS June 30, 2010 Page INTRODUCTORY SECTION: Letter of Transmittal 1-5 GFOA Certificate of Achievement 6 Organizational Chart 7 Elected Officials (Photographs) 8 Borough Officials 9 Map of Kodiak Island Borough 10 FINANCIAL SECTION: Independent Auditors’ Report 11-12 Management’s Discussion and Analysis 13-22 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets 23 Statement of Activities 24 Fund Financial Statements: Balance Sheet – Governmental Funds 25 Reconciliation of Net Assets Between the Government-Wide and Fund Financial Statements 26 Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) – Governmental Funds 27 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) of Governmental Funds to the Statement of Activities 28 Balance Sheet – Proprietary Funds – Business-Type Activities – Enterprise Funds 29 Statement of Revenues, Expenses, and Changes in Net Assets – Proprietary Funds – Business-Type Activities – Enterprise Funds 30 Statement of Cash Flows – Proprietary Funds – Business-Type Activities – Enterprise Funds 31-32 Notes to Financial Statements 33-66 Required Supplementary Information: Budgetary Comparison Schedule – General Fund 67-68 Budgetary Comparison Schedule – Special Revenue Fund – Facilities 69 Notes to Required Supplementary Information – Budgetary Comparison Schedules 70 Additional Supplementary Information: Budgetary Comparison Schedule – Debt Service Fund – Education and Health 71 Nonmajor Governmental Funds: Combining Balance Sheet 72 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 73 Nonmajor Special Revenue Funds: Combining Balance Sheet 74-77 KODIAK ISLAND BOROUGH TABLE OF CONTENTS June 30, 2010 Page Additional Supplementary Information, continued Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) 78-81 Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit) – Budget and Actual: Fire and Road Service Areas: Fire: Fire Protection Area No. 1 82 Womens Bay Fire Department 83 Kodiak Airport Fire District 84 Road: Monashka Bay Road Service Area 85 Service Area No. 1 86 Womens Bay Road Service Area 87 Bay View Road Service Area 88 Service Area No. 2 89 Coastal Management 90 Child Care Assistance Program 91 L.E.P.C. 92 Land Sales 93 Buildings and Grounds 94 Woodland Acres Street Light Service Area 95 Trinity Islands Street Light Service Area 96 Tourism Development 97 Mission Lake Tide Gate 98 Fern Fuller Trust 99 Trinity Islands Paving 100 Debt Service Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Other 101 Nonmajor Capital Project Funds: Combining Balance Sheet 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 103 (continued) KODIAK ISLAND BOROUGH Table of Contents Enterprise Funds: Schedule of Revenues, Expenses, and Changes in Net Assets (Deficit) – Budget and Actual: Municipal Solid Waste Collection and Disposal 104 Hospital Facilities 105 Kodiak Fisheries Research Center 106 911 Services Fund 107 Supplementary Schedules: Summary of Bonded Debt Service Requirements to Maturity 108 General Obligation Bonds, 2000 Series E – Retirement Schedule 109 General Obligation Bonds, 2000 Series F – Retirement Schedule 110 General Obligation Bonds, 2004 Series C – Retirement Schedule 111 General Obligation Bonds, 2004 Series D – Retirement Schedule 112 General Obligation Bonds, 2008 Series A – Retirement Schedule 113 General Obligation Bonds, 2009 Series A – Retirement Schedule 114 STATISTICAL SECTION: Statistical Section Index 115 Net Assets by Component – Last Five Fiscal Years 116 Changes in Net Assets – Last Five Fiscal Years 117 Fund Balances of Governmental Funds – Last Five Fiscal Years 118 Changes in Fund Balances of Governmental Funds – Last Six Fiscal Years 119 General Revenues by Source – Last Ten Fiscal Years 120 Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 121 Direct and Overlapping Property Tax Rates and Contributions to the School District 122 Principal Property Tax Payers – Current Year and Ten Years Ago 123 Property Tax Levies and Collections – Last Ten Fiscal Years 124 Ratios of Net General Bonded Debt Outstanding – Last Ten Fiscal Years 125 Computation of Direct and Overlapping Debt 126 Legal Debt Margin Information – Last Five Fiscal Years 127 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures and Transfers – Last Ten Fiscal Years 128 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 129 Demographic and Economic Statistics – Last Ten Fiscal Years 130 Average Monthly Employment & Earnings Last Three Fiscal Years 131 Miscellaneous Statistical Data – Last Ten Fiscal Years 132 Property Value, Construction and Bank Deposits – Last Ten Fiscal Years 133 Full-Time Equivalent Borough Employees by Function/Program – Last Five Fiscal Years 134 Operating Indicators by Function – Last Ten Fiscal Years 135 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 136                     (This page was intentionally left blank)  INTRODUCTORY SECTION Kodiak Island Borough Finance Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9323 Fax (907) 486-9392 1 January 25, 2011 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, 2010. 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, 2010, 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, 2010. The independent auditors‟ report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the Borough was part of broader, State and federally mandated “Single Audits” designed to meet the special needs of State and federal 2 grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government‟s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of State and federal awards. These reports are available in the Borough‟s separately issued Single Audit Report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management‟s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The Borough‟s MD&A can be found immediately following the report of the independent auditors. Profile of the Government The Kodiak Island Borough lies at the western border of the Gulf of Alaska, approximately 40 miles south of the Kenai Peninsula. Kodiak Island is the largest island in Alaska and the second largest in the United States. About two-thirds of the Borough lies in the Kodiak archipelago with the remaining third on the Alaska Peninsula, across the Shelikof Strait from Kodiak Island. The Shelikof Strait is only 20 miles wide in places. The Borough encompasses 7,130 square miles, making it slightly smaller than the State of Massachusetts and serves a population of 13,811. The Borough was incorporated September 30, 1963, as a Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. The powers granted to the Borough include area- wide powers and non area-wide powers. Area-wide powers are health, education, assessment and collection of taxes for both the Borough and cities within the Borough, planning and zoning, and general administrative services. Non area-wide powers include parks and recreation, economic development, solid waste disposal, and animal control. Service districts within the Kodiak Island Borough provide fire protection, road maintenance and construction, and street lighting. A Mayor/Manager form of government governs the Borough. The Mayor is elected at large while the Borough Assembly appoints the Manager. The Assembly is composed of seven members who are elected at-large. The Borough provides a full range of services including fire protection, the construction and maintenance of roads and other infrastructure, community and economic development, health and sanitation, culture and recreation and solid waste collection and disposal. The Borough also is financially accountable for a legally separate school district which is reported separately within the Borough‟s financial statements. Additional information on this legally separate entity can be found in the basic financial statements. The annual budget serves as the foundation for the Borough‟s financial planning and control. All departments of the Borough are required to submit requests for appropriation to the Borough Manager. The Borough Manager uses these requests as the starting point for developing a proposed budget. The Borough Manager then presents this proposed budget to the Assembly for review by April 30. The assembly is required to hold public hearings on the proposed budget and to adopt a final budget by no later than June 10. The appropriated budget is prepared by fund and department. The Assembly makes appropriation transfers between funds and/or departments only 3 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 been adopted. For the General Fund and the Facilities Special Revenue Fund, this comparison is presented on pages 67-69 as part of required supplementary information. For governmental funds, other than the General Fund and the Facilities Special Revenue Fund, this comparison is presented in the additional supplementary information subsection of this report, which starts on page 71. Also included in the additional supplementary information subsection are the Education and Health Debt Service Fund budget to actual. For proprietary funds, this comparison is presented in the proprietary funds subsection of this report, which starts on page 104. 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. 4 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. In 2007, the last year data was available, Kodiak was number four in the nation for number of pounds landed (320,000,000 pounds) and number three in the value of fish landed ($126,000,000). 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, then declines in November and December when fishing quotas are reached. The local unemployment rate has fluctuated from 6.0% to 10.4% 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. 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. 5 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, 2009. This was the twenty-second 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 Karleton G. Short Borough Manager Director of Finance                     (This page was intentionally left blank)  7 Electorate Borough Manager Borough Attorney Engineering/ Facilities Director Assistant Fire Chief Finance/MIS Director Arts Council Director Borough Mayor Borough Assembly Community Development Director Secretary III Maintenance Worker KFRC Maintenance Engineer KFRC Receptionist Environmental Specialist Baler/Landfill Supervisor Baler Operator II Baler Operator II Baler Operator I Baler Operator I Baler Operator I Administrative Assistant Assessor Associate Planner LRP Associate Planner Enforcement Drafting Technician Secretary III Property Appraiser Appraiser Technician Assessment Clerk I General Accountant Accounting Tech Accounts Payable Accounting Tech Payroll Childcare Assistance Administrator Revenue Accountant Secretary III MIS Programmer/ Analyst MIS Operations Supervisor MIS Network Administrator Cashier Borough Clerk Assistant Clerk Deputy Clerk Kodiak Island Borough Fiscal Year 2010 Project Manager/ Inspector Project Assistant 8 Jerome Selby Mayor, 2010 Pat Branson Deputy Presiding Officer, At Large, 2010 Jerrol Friend At Large, 2012 Judy Fulp At Large, 2011 Sue Jeffrey At Large, 2011 Dave Kaplan At Large, 2011 Chris Lynch At Large, 2012 Louise Stutes At Large, 2010 MAYOR AND ASSEMBLY MEMBERS 9 KODIAK ISLAND BOROUGH KODIAK, ALASKA BOROUGH OFFICIALS YEAR ENDED JUNE 30, 2010 MAYOR Jerome Selby ‘10 ASSEMBLY Patricia Branson ‘10 Jerrol Friend ‘12 Judy Fulp ‘11 Sue Jeffrey ‘11 Dave Kaplan ‘11 Chris Lynch ‘12 Louise Stutes ‘10 MANAGEMENT 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 Bill Roberts ...........................................................................................................................Assessor Robert A. Himes ................................................................................................................. Fire Chief Jamin, Schmitt, St. John ........................................................... Borough Attorney (Contracted Firm) Stuart McDonald ............................................................................... Superintendent, School District Dria Bray-Holloway ............................................................................................ General Accountant Cassandra Juenger .............................................................................................. Revenue Accountant Lauri Whiddon ................................................................................. HR Officer/Executive Assistant 10                     (This page was intentionally left blank)  FINANCIAL SECTION   KODIAK ISLAND BOROUGH Management’s Discussion and Analysis June 30, 2010 13 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, 2010. 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 1 - 5 of this report. Financial Highlights The assets of the Kodiak Island Borough exceeded its liabilities at the close of FY2010 by $162,497,439. Of this amount, $48,394,535 (unrestricted net assets) may be used to meet the Borough’s ongoing obligations to citizens and creditors. In FY2010 the Borough’s total net assets increased by $7,626,228. At the end of the current fiscal year, the Borough’s governmental funds reported combined fund balances of $54,065,390, a loss of $5,081,025 in comparison with the prior year. At the end of FY2010, unreserved fund balance for the general fund was $2,366,973. This was 16% of total general fund expenditures. The Borough’s bonds payable decreased by $2,680,000 due to the payment of bond principal. 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 u ser 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 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 23-24 of this report. KODIAK ISLAND BOROUGH Management’s Discussion and Analysis June 30, 2010 14 Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Kodiak Island Borough, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of the funds of the Kodiak Island Borough can be divided into two categories: governmental funds and proprietary funds. Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government wide financial statements. However, unlike the government wide statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Kodiak Island Borough maintains 34 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Facilities Special Revenue Fund, the Education and Health Debt Service Fund, the Borough Capital Project Fund, the School Bond Capital Project Fund, and the Other Capital Project 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 25-28 of this report. Proprietary Funds – The only Proprietary Fund type that the Kodiak Island Borough uses is enterprise funds. Enterprise funds are used to report the same functions presented as business type activities in the government wide financial statements. Proprietary Funds provide the same type of information as government wide financial statements, only in more detail. The Kodiak Island Borough uses enterprise funds to account for a solid waste collection and disposal facility, a Borough owned hospital leased to the Sisters of Providence d.b.a. Providence Kodiak Island Medical Center, rents and utilities of the Borough owned Kodiak Fisheries Research Center, and 911 phone charges and expenses. The Kodiak Island Borough adopts an annual appropriated budget for its proprietary funds. Budgetary comparison statements have been provided for the funds to demonstrate compliance with the budget. The basic Proprietary Fund financial statements can be found on pages 29-32 of this report. KODIAK ISLAND BOROUGH Management’s Discussion and Analysis June 30, 2010 15 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 33-66 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 67-70 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 financ ial position. In the case of the Kodiak Island Borough, assets exceeded liabilities by $162,497,439 at the close of FY2010, the most recent fiscal year. The net assets of the component unit were $4,823,357 at the close of FY2010. The largest portion of the Kodiak Island Borough’s net assets ($114,102,904 or 70%) 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 2010 2009 2010 2009 2010 2009 Current and other assets $55,099,913 61,772,451 11,594,374 9,535,773 66,694,287 71,308,224 Capital assets 102,346,376 93,135,695 38,645,854 39,999,843 140,992,230 133,135,538 Total assets $157,446,289 154,908,146 50,240,228 49,535,616 207,686,517 204,443,762 Long-term liabilities $29,899,331 32,600,929 6,747,622 6,522,192 36,646,953 39,123,121 Other liabilities 1,107,011 2,632,045 7,435,114 7,817,385 8,542,125 10,449,430 Total liabilities $31,006,342 35,232,974 14,182,736 14,339,577 45,189,078 49,572,551 Net assets: Invested in capital assets, net of related debt $77,447,045 71,534,766 36,655,859 38,135,340 114,102,904 109,670,106 Unrestricted 48,992,902 48,140,406 (598,367) (2,939,301) 48,394,535 45,201,105 Total net assets $126,439,947 119,675,172 36,057,492 35,196,039 162,497,439 154,871,211 For more detailed information see the statement of net assets on page 23. The remaining balance of unrestricted net assets, $48,394,535, may be used to meet the Borough’s ongoing obligations to citizens and creditors. KODIAK ISLAND BOROUGH Management’s Discussion and Analysis June 30, 2010 16 Statement of Activities The following condensed table of changes in net assets displays the revenues and expenses for the current and prior year. 2010 2009 2010 2009 2010 2009 Revenues: Program revenues: Charges for services $741,193 742,527 7,871,608 8,830,744 8,612,801 9,573,271 Operating grants and contributions 2,306,394 2,543,254 — — 2,306,394 2,543,254 Capital grants 6,518,798 2,331,253 — — 6,518,798 2,331,253 General revenues: Property taxes 11,051,740 10,592,258 — — 11,051,740 10,592,258 Grants and entitlements not restricted — — to specific programs 4,089,966 4,214,617 — — 4,089,966 4,214,617 Land sales 760 26,369 — — 760 26,369 Severance taxes 1,336,075 1,311,188 — — 1,336,075 1,311,188 Other 619,948 226,586 — 50 619,948 226,636 Investment earnings 1,219,201 2,082,615 198,067 273,973 1,417,268 2,356,588 Total revenues 27,884,075 24,070,667 8,069,675 9,104,767 35,953,750 33,175,434 Expenses: General government 4,479,415 3,723,964 — — 4,479,415 3,723,964 Public safety 612,763 579,710 — — 612,763 579,710 Emergency preparedness 1,034,686 14,988 — — 1,034,686 14,988 Community and economic development 10,511 908,501 — — 10,511 908,501 Health and sanitation department 406,087 371,673 — — 406,087 371,673 Education, culture, and recreation 192,182 248,571 — — 192,182 248,571 Service district maintenance 543,897 398,219 — — 543,897 398,219 Primary and secondary education 12,423,691 12,354,129 — — 12,423,691 12,354,129 Interest on long-term debt 1,336,068 1,408,045 — — 1,336,068 1,408,045 Municipal solid waste collection and disposal — — 4,283,148 3,852,158 4,283,148 3,852,158 Hospital facilities — — 1,035,020 1,095,535 1,035,020 1,095,535 Kodiak fisheries research center — — 1,927,580 1,960,404 1,927,580 1,960,404 911 services — — 42,474 43,043 42,474 43,043 Total expenses 21,039,300 20,007,800 7,288,222 6,951,140 28,327,522 26,958,940 Change in net assets before transfers and extraordinary item 6,844,775 4,062,867 781,453 2,153,627 7,626,228 6,216,494 Transfers (80,000) (765,490) 80,000 765,490 — — Extraordinary item — 1,396,222 — 432,688 — 1,828,910 Net transfers and extraordinary item (80,000) 630,732 80,000 1,198,178 — 1,828,910 Change in net assets 6,764,775 4,693,599 861,453 3,351,805 7,626,228 8,045,404 Net assets, beginning of year 119,675,172 114,981,573 35,196,039 31,844,234 154,871,211 146,825,807 Net assets, end of year $126,439,947 119,675,172 36,057,492 35,196,039 162,497,439 154,871,211 Governmental activities Business-type activities Total Governmental activities increased the Kodiak Island Borough’s net assets by $6,764,775. The major differences in revenues were an increase of $459,482 in property taxes due to property re-appraisals, $4,187,545 in capital grants due to a large increase in grant funding, and a decrease in investment earnings of $863,414 due to a decline in the overall market. There were some major changes in expenses including an increase of $755,451 in general government caused by an upgrade of the accounting system and additional personnel being added to the Borough staff. In 2009, 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. This resulted in an extraordinary gain of $1,828,910. KODIAK ISLAND BOROUGH Management’s Discussion and Analysis June 30, 2010 17 Business type activities increased the Kodiak Island Borough’s net assets by $861,453, compared to an increase of $3,351,805 in the prior year. The major differences were a decrease of $959,136 in charges for services which was due to a decrease in Community Health Center Funding, and an increase of $430,990 in municipal solid waste collection and disposal expenses. The proprietary funds had operating income of $781,453 before transfers. 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 Expenses and Program Revenues Governmental Activities Revenues Expenditures For more detailed information see the statement of activities on page 24. Financial Analysis of the Government’s Funds As noted earlier, the Kodiak Island Borough uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Governmental Funds – The focus of the Kodiak Island Borough’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Kodiak Island Borough’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. KODIAK ISLAND BOROUGH Management’s Discussion and Analysis June 30, 2010 18 As of the end of the current fiscal year, the Kodiak Island Borough’s governmental funds reported combined ending fund balances of $54,065,390, a decrease of $5,081,025 in comparison to the beginning of the year. $48,323,384 of this total amount constitutes unreserved fund balance, of which $1,779,978 is designated for subsequent year expenditures and $46,543,406 is undesignated. The remaining $5,742,006 of fund balance is reserved for long-term interfund borrowings and prepaid items. The main reasons for this decrease are as follows: $11,679,370 was spent on capital projects that were mainly financed by bond issues sold in previous years. Interest earnings were $862,977 less than last year. General government expenditures were $533,577 more than last year. 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 $2,382,676 with $1,423,158 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 16% of total General Fund expenditures. The fund balance of the Kodiak Island Borough’s General Fund decreased by $741,613 during the current fiscal year. The key factor leading to this decrease was a budgeted use of unreserved fund balance to balance the FY2010 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 $4,833,271, the Hospital Facilities fund amounted to $21,139,913, the Kodiak Fisheries Research Center fund amounted to $10,084,308 and the 911 Services fund amounted to 0. The total increase in net assets for the Municipal Solid Waste Collection and Disposal fund was $205,199. The total increase in net assets for the Hospital Facilities fund was $916,172. The total decrease in net assets for the Kodiak Fisheries Research Center was $259,918. The assets in the 911 Services fund did not change. Other factors concerning the finances of these four funds have al ready been addressed in the discussion of the Kodiak Island Borough’s business-type activities. KODIAK ISLAND BOROUGH Management’s Discussion and Analysis June 30, 2010 19 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 Municipal Solid Waste Hospital Facilities Kodiak Fisheries Research Center 911 Service 2010 Program Revenue vs Expense Proprietary Operations Program Revenue Program Expense General Fund Budgetary Highlights Differences between the original budget and final amended budget can be briefly summarized as follows: The revenue budget for real property tax was decreased $110,000. The revenue budget for personal property tax was decreased $79,000. The revenue budget for state revenue sharing was decreased $219,000. The revenue budget for state raw fish tax was increased by $239,575. The revenue budget for fish and wildlife revenue sharing was decreased by $97,837. The revenue budget for investment income was increased by $50,000. The expenditure budget for the Engineering/Facilities department had to be increased $60,000. The primary and secondary education budget had to be reduced by $1,328,629. Differences between the final amended budget and actual can be summarized as follows: Real property taxes were $77,502 more than budgeted. This was due to tax collections after year end. Penalty and interest of taxes was $42,124 less than budgeted. This was due to collection efforts in previous years. State payments for fish revitalization were $50,885 more than budgeted. This was due to increased state aid. KODIAK ISLAND BOROUGH Management’s Discussion and Analysis June 30, 2010 20 State on behalf PERS payments were $120,786 less than budgeted. This was due to lower than expected state aid. Federal payments in lieu of taxes were $144,593 over budget. This was due to the federal government fully funding this program. Federal community stimulus grant money was $202,640 more than budgeted. This was due to receiving the funds sooner than expected. Severance taxes were $112,307 under budget. This was due to lower than anticipated market prices. The Borough Managers department came in $33,967 over budget. This was due to salaries and retirement costs coming in over budget. The Borough Attorney’s department came in $36,133 under budget. This was due to less litigation than expected. The Management Information Systems department came in $77,699 under budget. This was due to salary costs and benefits coming in under budget. The Community Development department came in $224,683 under budget. This was due to contracted services coming in under budget. The Parks and Recreation department came in $36,000 under budget. This was due lack of available staff to work on these projects. Economic Development came in $29,642 under budget. This was mainly due to contracted services coming in under budget. General Administration was $34,349 under budget. This was due to outside audit expenses 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, 2010, amounted to $140,992,230 (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 $7,856,692 which was mostly due to increases in construction work in process. KODIAK ISLAND BOROUGH Management’s Discussion and Analysis June 30, 2010 21 The following table displays the capital assets (net of depreciation) for the current year. Governmental Business-type activities activities Total 2010 2009 2010 2009 2010 2009 Artwork $— — 16,091 16,091 16,091 16,091 Land 23,467,304 23,072,753 1,661,499 1,661,499 25,128,803 24,734,252 Construction work-in-progress 31,090,574 30,677,298 6,727,606 6,252,703 37,818,180 36,930,001 Buildings and improvements 37,887,304 35,615,547 25,850,093 27,233,162 63,737,397 62,848,709 Improvements other than buildings 7,367,186 1,023,261 2,289,599 2,518,425 9,656,785 3,541,686 Equipment 1,126,475 1,195,235 965,479 1,138,732 2,091,954 2,333,967 Infrastructure 1,407,533 1,551,601 — — 1,407,533 1,551,601 Unclassified plant in service — — 1,135,487 1,179,231 1,135,487 1,179,231 $102,346,376 93,135,695 38,645,854 39,999,843 140,992,230 133,135,538 Additional information on the Kodiak Island Borough’s capital assets can be found in note 6 on pages 44-48 of this report. Long-Term Debt – At the end of the current fiscal year, the Kodiak Island Borough had total bonded debt outstanding of $29,565,000. 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. Governmental Business-type activities activities Total 2010 2009 2010 2009 2010 2009 General obligation bonds, including premium $29,838,432 32,534,424 — — 29,838,432 32,534,424 ADEC loans 60,899 66,505 — — 60,899 66,505 Compensated absences 233,057 234,236 — — 233,057 234,236 Landfill post closure care costs — — 4,757,627 4,390,364 4,757,627 4,390,364 Long term interfund borrowings — — 6,091,864 6,544,725 6,091,864 6,544,725 Notes payable — — 1,989,995 1,864,503 1,989,995 1,864,503 $30,132,388 32,835,165 12,839,486 12,799,592 42,971,874 45,634,757 The Kodiak Island Borough’s total debt decreased $2,662,883 during the current fiscal year. This decrease was mostly due to the Kodiak Island Borough paying $2,680,000 of principal of general obligation bonds. 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 52-59 of this report. Economic Factors and Next Year’s Budgets and Rates At June 30, 2010, the unemployment rate for the Kodiak Island Borough was 6.7%, which is .8% lower than last year’s rate of 7.5%. 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. KODIAK ISLAND BOROUGH Management’s Discussion and Analysis June 30, 2010 22 The PERS (Public Employees Retirement System) rate has increased from 0% in FY2004 to 27.65% in FY2010. The State of Alaska set a ceiling of 22% on all political subdivisions and contributed the additional 5.65%. 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 M ill Bay Kodiak, Alaska 99615. KODIAK ISLAND BOROUGH Statement of Net Assets June 30, 2010 (With summarized financial information for June 30, 2009) Component Primary government unit Total reporting entity Governmental Business-type School Assets activities activities Total District 2010 2009 Equity in central treasury $49,222,436 10,525,760 59,748,196 97,218 59,845,414 69,249,865 Due from primary government —    —    —    4,956,848 4,956,848 5,766,156 Receivables: State of Alaska 4,677,896 100,000 4,777,896 —    4,777,896 610,588 Federal Government 379,530 —    379,530 —    379,530 62,034 Property taxes, net of allowance of $15,828 207,544 —    207,544 —    207,544 140,730 Severance taxes 355,360 355,360 —    355,360 280,334 Deferred charges 99,198 —    99,198 —    99,198 101,380 Inventories —    277,007 277,007 503,489 780,496 681,425 Prepaid expenses 15,703 —    15,703 —    15,703 17,567 Land sales contracts receivable 45,419 —    45,419 —    45,419 214,047 Accounts and other receivables, net 96,827 691,607 788,434 2,772,966 3,561,400 1,819,283 Capital assets: Non-depreciable 54,557,878 8,405,196 62,963,074 —    62,963,074 61,680,344 Depreciable, net 47,788,498 30,240,658 78,029,156 530,890 78,560,046 71,784,897 Total $157,446,289 50,240,228 207,686,517 8,861,411 216,547,928 212,408,650 Liabilities and Net Assets Liabilities: Accounts payable $1,382,775 335,683 1,718,458 280,756 1,999,214 2,997,255 Retainages payable 248,787 —    248,787 —    248,787 530,153 Accrued compensation and related liabilities 459,617 91,287 550,904 3,230,606 3,781,510 3,547,097 Other accrued liabilities 241,016 532,169 773,185 —    773,185 743,705 Customer deposits 1,258 —    1,258 —    1,258 700 Unearned revenues 52,142 240,543 292,685 32,279 324,964 596,944 Due to component unit 4,956,848 —    4,956,848 —    4,956,848 5,766,156 Internal balances (6,235,432) 6,235,432 —    —    —    —     Noncurrent liabilities: Due within one year 2,760,992 —    2,760,992 494,413 3,255,405 3,452,752 Due in more than one year 27,138,339 1,989,995 29,128,334 —    29,128,334 31,528,242 Landfill closure costs —    4,757,627 4,757,627 —    4,757,627 4,390,364 Total liabilities 31,006,342 14,182,736 45,189,078 4,038,054 49,227,132 53,553,368 Net assets: Invested in capital assets, net of related debt 77,447,045 36,655,859 114,102,904 530,890 114,633,794 109,670,106 Unrestricted 48,992,902 (598,367) 48,394,535 4,292,467 52,687,002 49,185,176 Net assets 126,439,947 36,057,492 162,497,439 4,823,357 167,320,796 158,855,282 Total $157,446,289 50,240,228 207,686,517 8,861,411 216,547,928 212,408,650 See accompanying notes to financial statements. 23 Program revenues Net (expense) revenue and changes in net assets Operating Primary government Component unit Charges for grants and Capital Governmental Business-type School Total reporting entity Functions/Programs Expenses services contributions grants activities activities Total District 2010 2009 Primary government: Governmental activities: General government $4,479,415 703,431 9,380 —    (3,766,604) —    (3,766,604) —    (3,766,604) (2,815,102) Public safety 612,763 12,762 27,225 —    (572,776) (572,776) (572,776) (547,169) Emergency preparedness 10,511 —    —    —    (10,511) —    (10,511) —    (10,511) (14,988) Community and economic development 1,034,686 —    24,371 2,386,437 1,376,122 —    1,376,122 —    1,376,122 1,494,576 Health and sanitation department 406,087 —    105,695 —    (300,392) —    (300,392) —    (300,392) (270,625) Education, culture and recreation 192,182 —    —    —    (192,182) —    (192,182) —    (192,182) (248,571) Service district maintenance 543,897 25,000 95 —    (518,802) —    (518,802) —    (518,802) (373,219) Primary and secondary education 12,423,691 —    —    4,132,361 (8,291,330) —    (8,291,330) —    (8,291,330) (12,354,129) Interest on long-term debt 1,336,068 —    2,139,628 —    803,560 —    803,560 —    803,560 738,461 Total governmental activities 21,039,300 741,193 2,306,394 6,518,798 (11,472,915) —    (11,472,915) —    (11,472,915) (14,390,766) Business-type activities: Municipal solid waste collection and disposal 4,283,148 4,350,369 —    —    —    67,221 67,221 —    67,221 (248,163) Hospital facilities 1,035,020 1,867,990 —    —    —    832,970 832,970 —    832,970 2,480,300 Kodiak fisheries research center 1,927,580 1,610,775 —    —    —    (316,805) (316,805) —    (316,805) (362,144) 911 services 42,474 42,474 —    —    —    —    —    —    —    9,611 Total business-type activities 7,288,222 7,871,608 —    —    —    583,386 583,386 —    583,386 1,879,604 Total primary government 28,327,522 8,612,801 2,306,394 6,518,798 (11,472,915) 583,386 (10,889,529) —    (10,889,529) (12,511,162) Component unit - School district $47,835,574 259,880 12,006,306 —    (35,569,388) (35,569,388) —     General revenues: Property taxes 11,051,740 —    11,051,740 —    11,051,740 10,592,258 Grants and entitlements not restricted to specific programs 4,089,966 —    4,089,966 25,630,873 29,720,839 34,658,692 Land sales 760 —    760 —    760 26,369 Severance taxes 1,336,075 —    1,336,075 —    1,336,075 1,311,188 Support from primary government —    —    —    10,290,350 10,290,350 10,243,618 Other 619,948 —    619,948 487,451 1,107,399 330,726 Investment earnings 1,219,201 198,067 1,417,268 —    1,417,268 2,356,588 Transfers (80,000) 80,000 —    —    —    —     Extraordinary item —    —    —    —    —    6,186,447 Total general revenues, transfers and extraordinary item 18,237,690 278,067 18,515,757 36,408,674 54,924,431 65,705,886 Change in net assets 6,764,775 861,453 7,626,228 839,286 8,465,514 14,145,195 Net assets, at beginning of year 119,675,172 35,196,039 154,871,211 3,984,071 158,855,282 144,710,087 Net assets, at end of year $126,439,947 36,057,492 162,497,439 4,823,357 167,320,796 158,855,282 See accompanying notes to financial statements. KODIAK ISLAND BOROUGH Statement of Activities Year ended June 30, 2010 (With summarized financial information for the year ended June 30, 2009) 24 KODIAK ISLAND BOROUGH Balance Sheet Governmental Funds June 30, 2010 (With summarized financial information for June 30, 2009) Facilities Education and Other Special Health Debt Governmental Assets General Revenue Fund Service Fund Borough School Bond Other Funds 2010 2009 Assets: Cash and investments $6,780,243 33,158,293 40,799 501,255 3,991,830 221,170 4,528,846 49,222,436 60,424,187 Receivables: State of Alaska 75,843 —    381,456 —    —    3,715,236 505,361 4,677,896 510,588 Federal Government 215,034 —    —    —    —    81,023 83,473 379,530 62,034 Property taxes, net of allowance of $15,828 195,048 —    —    —    —    —    12,496 207,544 140,730 Severance taxes 355,360 —    —    —    —    —    —    355,360 280,334 Land sales contracts —    —    —    —    —    —    11,077 11,077 41,598 Accounts and other receivables, net 4,519 —    —    2,929 —    69,309 20,070 96,827 39,151 Due from other funds 509,107 681,657 —    —    2,220,000 —    36,250 3,447,014 1,584,884 Prepaid items 15,703 —    —    —    —    —    —    15,703 —     Land sales contracts, due after one year —    —    —    —    —    —    34,342 34,342 172,449 Advances to other funds —    5,611,261 —    —    —    —    —    5,611,261 6,206,906 Total $8,150,857 39,451,211 422,255 504,184 6,211,830 4,086,738 5,231,915 64,058,990 69,462,861 Liabilities and Fund Balances Liabilities: Accounts payable 402,741 —    —    28,490 256,424 317,950 377,170 1,382,775 1,946,855 Retainages payable —    —    —    79,011 145,326 24,450 —    248,787 530,153 Accrued compensation and related liabilities 226,560 —    —    —    —    —    —    226,560 167,764 Customer deposits —    —    —    —    —    —    1,258 1,258 700 Due to component unit 4,956,848 —    —    —    —    —    —    4,956,848 5,766,156 Due to other funds —    —    400,000 1,202,146 8,562 1,000,651 211,484 2,822,843 1,154,316 Unearned revenues 182,032 86,012 —    —    —    —    86,485 354,529 750,502 Total liabilities 5,768,181 86,012 400,000 1,309,647 410,312 1,343,051 676,397 9,993,600 10,316,446 Fund balances: Reserved: Long-term interfund borrowings —    5,726,303 —    —    —    —    —    5,726,303 6,206,906 Prepaid items 15,703 —    —    —    —    —    —    15,703 —     Unreserved: General fund: Designated for subsequent year expenditures 1,423,158 —    —    —    —    —    —    1,423,158 1,261,581 Undesignated 943,815 —    —    —    —    —    —    943,815 1,862,708 Special revenue funds: Designated for subsequent year expenditures —    —    —    —    —    —    356,820 356,820 684,668 Undesignated —    33,638,896 —    —    —    —    3,535,266 37,174,162 36,608,103 Debt service funds: Undesignated —    —    22,255 —    —    —    —    22,255 5,938 Capital projects funds: Undesignated (deficit)—    —    —    (805,463) 5,801,518 2,743,687 663,432 8,403,174 12,516,511 Total fund balances (deficit)2,382,676 39,365,199 22,255 (805,463) 5,801,518 2,743,687 4,555,518 54,065,390 59,146,415 Total $8,150,857 39,451,211 422,255 504,184 6,211,830 4,086,738 5,231,915 64,058,990 69,462,861 See accompanying notes to financial statements. Capital Project Funds Totals 25 Amount reported as fund balance on the governmental funds balance sheet $54,065,390 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.102,346,376 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 $182,032 Interest receivable 86,013 Notes receivable - land sales 34,342 Deferred charges 99,198 401,585 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 (29,565,000) Bond premium (273,432) ADEC loans (60,899) Accrued interest expense (241,016) Compensated absences (233,057) (30,373,404) Net assets of governmental activities $126,439,947 See accompanying notes to financial statements. KODIAK ISLAND BOROUGH Reconciliation of Net Assets Between the Government-wide and Fund Financial Statements Year ended June 30, 2010 26 Facilities Education and Other Special Health Debt Governmental General Revenue Fund Service Fund Borough School Bond Other Funds 2010 2009 Revenues: Property taxes $9,883,107 —    —    —    —    —    1,110,068 10,993,175 10,565,685 Intergovernmental: State sources 2,307,036 —    2,139,628 322,985 2,118 3,723,091 2,115,373 10,610,231 5,966,808 Federal sources 1,816,471 —    —    10,810 —    73,357 437,830 2,338,468 3,122,316 Land sale proceeds —    —    —    —    —    —    138,867 138,867 30,561 Severance taxes 1,336,075 —    —    —    —    —    —    1,336,075 1,311,188 Licenses, permits, fees, and other local revenues 71,319 —    —    —    —    —    669,874 741,193 742,527 Investment income 178,567 939,782 (1,950) 7,606 25,335 —    76,598 1,225,938 2,088,915 Other 38,352 —    —    311,612 —    102,202 118,249 570,415 418,741 Total revenues 15,630,927 939,782 2,137,678 653,013 27,453 3,898,650 4,666,859 27,954,362 24,246,741 Expenditures: Current: General government 3,428,878 —    8,404 —    —    —    1,163,319 4,600,601 4,067,024 Public safety 84,125 —    —    —    —    —    418,366 502,491 460,826 Community and economic development 934,194 —    —    —    —    —    100,492 1,034,686 908,501 Emergency preparedness 8,011 —    —    —    —    —    —    8,011 12,488 Health and sanitation department 265,626 —    —    —    —    —    105,695 371,321 333,747 Education, culture and recreation 192,182 —    —    —    —    —    —    192,182 248,571 Service district maintenance —    —    —    —    —    —    543,897 543,897 398,219 Primary and secondary education 9,980,350 —    —    —    —    —    —    9,980,350 9,956,618 Capital outlay: Schools —    —    —    665,015 5,992,605 689,290 13,022 7,359,932 14,857,064 General —    —    —    1,691,811 —    191,174 2,436,453 4,319,438 1,277,106 Debt service: Principal —    —    2,685,606 —    —    —    —    2,685,606 2,495,056 Interest —    —    1,350,620 —    —    —    6,252 1,356,872 1,578,408 Debt issuance costs —    —    —    —    —    —    —    —    68,635 Total expenditures 14,893,366 —    4,044,630 2,356,826 5,992,605 880,464 4,787,496 32,955,387 36,662,263 Excess (deficiency) of revenues over (under) expenditures 737,561 939,782 (1,906,952) (1,703,813) (5,965,152) 3,018,186 (120,637) (5,001,025) (12,415,522) Other financing sources (uses): Refunding bond issued —    —    —    —    —    —    —    —    6,740,000 Payment to refunded bond escrow agent —    —    —    —    —    —    —    —    (6,865,467) Transfers in —    —    1,923,269 369,499 —    95,000 823,427 3,211,195 6,144,301 Transfers out (1,479,174) (1,267,595) —    —    —    (369,499) (174,927) (3,291,195) (6,909,791) Net other financing sources (uses)(1,479,174) (1,267,595) 1,923,269 369,499 —    (274,499) 648,500 (80,000) (890,957) Change in fund balances (741,613) (327,813) 16,317 (1,334,314) (5,965,152) 2,743,687 527,863 (5,081,025) (13,306,479) Fund balances, at beginning of year 3,124,289 39,693,012 5,938 528,851 11,766,670 —    4,027,655 59,146,415 72,452,894 Fund balances (deficit), at end of year $2,382,676 39,365,199 22,255 (805,463) 5,801,518 2,743,687 4,555,518 54,065,390 59,146,415 See accompanying notes to financial statements. Capital Project Funds Totals KODIAK ISLAND BOROUGH Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) Governmental Funds Year ended June 30, 2010 (With summarized financial information for the year ended June 30, 2009) 27 KODIAK ISLAND BOROUGH Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) of Governmental Funds to the Statement of Activities Year ended June 30, 2010 Net change in fund balances – total governmental funds $(5,081,025) 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 $12,123,277 Depreciation expense (2,912,596) 9,210,681 Certain revenues in the statement of activities do not provide current financial resources and are deferred in the funds: Deferred property tax 182,032 Interest income 86,013 Land sale proceeds 34,342 302,387 Certain revenues that were earned in a prior year provide current financial resources: Accrued property tax (123,467) Accrued interest income (92,750) Land sale contracts (172,449) (388,666) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds do not report the accrual of interest expense on debt when it is not payable from currently available resources: Interest expenditures applied to accrued interest 20,804 Principal repayments 2,685,606 Amortized debt issuance costs (2,183) Bond premium amortization 15,992 2,720,219 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 1,179 Change in net assets of governmental activities $6,764,775 See accompanying notes to financial statements. 28 KODIAK ISLAND BOROUGH Balance Sheet Proprietary Funds – Business-type Activities – Enterprise Funds June 30, 2010 (With summarized financial information for June 30, 2009) Municipal Kodiak Other Solid Waste Fisheries Nonmajor Collection and Hospital Research Enterprise Totals Assets Disposal Facilities Center Fund 2010 2009 Current assets: Equity in central treasury $6,284,817 807,424 3,418,819 14,700 10,525,760 8,773,064 Accrued interest receivable —    —    —    —    —    8,632 Customer receivables 569,875 121,200 532 —    691,607 377,070 Accounts receivable – State of Alaska 100,000 —    —    —    100,000 100,000 Due from other funds —    —    —    —    —    400,000 Total current assets 6,954,692 928,624 3,419,351 14,700 11,317,367 9,658,766 Inventories —    277,007 —    —    277,007 277,007 Capital assets: Non-depreciable 2,417,311 5,987,885 —    —    8,405,196 7,930,293 Depreciable, net 3,056,875 15,205,296 11,978,487 —    30,240,658 32,069,550 Total capital assets 5,474,186 21,193,181 11,978,487 —    38,645,854 39,999,843 Total noncurrent assets 5,474,186 21,470,188 11,978,487 —    38,922,861 40,276,850 Total $12,428,878 22,398,812 15,397,838 14,700 50,240,228 49,935,616 Liabilities and Net Assets Current liabilities: Accounts payable $211,802 81,435 27,746 14,700 335,683 684,517 Accrued compensation and related liabilities 64,488 —    26,799 —    91,287 78,086 Other accrued liabilities 532,169 —    —    —    532,169 481,885 Current portion of advances from other funds —    70,603 410,000 —    480,603 452,861 Due to other funds 39,526 600 103,442 —    143,568 492,750 Unearned revenues —    —    240,543 —    240,543 202,747 Total current liabilities 847,985 152,638 808,530 14,700 1,823,853 2,392,846 Noncurrent liabilities: Notes payable 1,989,995 —    —    —    1,989,995 1,864,503 Advances from other funds —    1,106,261 4,505,000 —    5,611,261 6,091,864 Accrual for landfill closure and postclosure costs 4,757,627 —    —    —    4,757,627 4,390,364 Total noncurrent liabilities 6,747,622 1,106,261 4,505,000 —    12,358,883 12,346,731 Total liabilities 7,595,607 1,258,899 5,313,530 14,700 14,182,736 14,739,577 Net assets: Invested in capital assets, net of related debt 3,484,191 21,193,181 11,978,487 —    36,655,859 38,135,340 Unrestricted 1,349,080 (53,268) (1,894,179) —    (598,367) (2,939,301) Total net assets 4,833,271 21,139,913 10,084,308 —    36,057,492 35,196,039 Total $12,428,878 22,398,812 15,397,838 14,700 50,240,228 49,935,616 See accompanying notes to financial statements. 29 KODIAK ISLAND BOROUGH Statement of Revenues, Expenses, and Changes in Net Assets Proprietary Funds – Business-type Activities – Enterprise Funds Year ended June 30, 2010 (With summarized financial information for the year ended June 30, 2009) Municipal Kodiak Other Solid Waste Fisheries Nonmajor Collection and Hospital Research Enterprise Totals Disposal Facilities Center Fund 2010 2009 Operating revenues: Solid waste collection $3,226,606 —    —    —    3,226,606 2,559,903 Solid waste disposal 1,098,668 —    —    —    1,098,668 1,044,092 Charges for services/customer charges —    —    —    42,474 42,474 52,654 Lease income —    720,000 1,602,685 —    2,322,685 2,318,260 Other —    —    —    —    —    50 Total operating revenues 4,325,274 720,000 1,602,685 42,474 6,690,433 5,974,959 Operating expenses: Personnel services 795,050 5,000 338,361 3,000 1,141,411 1,123,728 Solid waste collection 1,640,179 —    —    —    1,640,179 1,534,673 Refuse disposal 358,408 —    —    —    358,408 276,878 Contracted services 275,876 —    —    —    275,876 187,969 Maintenance and repairs 90,793 —    —    —    90,793 34,483 Landfill closure and postclosure costs 367,263 —    —    —    367,263 348,634 Depreciation 270,488 872,858 630,395 —    1,773,741 1,912,852 General and administration 204,366 45 489,931 —    694,342 708,727 Miscellaneous —    —    118,106 395 118,501 91,641 Telephone services —    —    —    39,079 39,079 39,621 Recycling services 267,518 —    —    —    267,518 233,768 Contributions 13,207 —    —    —    13,207 10,876 Total operating expenses 4,283,148 877,903 1,576,793 42,474 6,780,318 6,503,850 Operating income (loss)42,126 (157,903) 25,892 —    (89,885) (528,891) Nonoperating revenues (expenses): Contribution to Providence Hospital —    (108,000) —    —    (108,000) (108,000) State of Alaska on-behalf payment 25,095 228 8,090 —    33,413 89,762 CHC reimbursements —    1,147,762 —    —    1,147,762 2,855,835 Investment income 124,478 16,702 56,887 —    198,067 273,973 Interest expense —    (49,117) (350,787) —    (399,904) (429,052) Income (loss) before transfers 191,699 849,672 (259,918) —    781,453 2,153,627 Transfers in 13,500 66,500 —    —    80,000 765,490 Income (loss) before extraordinary item 205,199 916,172 (259,918) —    861,453 2,919,117 Extraordinary item —    —    —    —    —    432,688 Change in net assets 205,199 916,172 (259,918) —    861,453 3,351,805 Net assets, at beginning of year 4,628,072 20,223,741 10,344,226 —    35,196,039 31,844,234 Net assets, at end of year $4,833,271 21,139,913 10,084,308 —    36,057,492 35,196,039 See accompanying notes to financial statements. 30 KODIAK ISLAND BOROUGH Statement of Cash Flows Proprietary Funds – Business-type Activities – Enterprise Funds Year ended June 30, 2010 (With summarized financial information for the year ended June 30, 2009) Municipal Kodiak Other Solid Waste Fisheries Nonmajor Collection and Hospital Research Enterprise Totals Disposal Facilities Center Fund 2010 2009 Cash flows from operating activities: Cash received from customers $4,014,464 716,739 1,640,015 42,474 6,413,692 6,144,754 Payments to suppliers (2,933,202) (190,346) (607,781) (64,395) (3,795,724) (3,214,325) Payments to employees (780,645) (5,000) (339,565) (3,000) (1,128,210) (1,106,584) Net cash provided (used) by operating activities 300,617 521,393 692,669 (24,921) 1,489,758 1,823,845 Cash flows from noncapital financing activities: Contribution to Providence Hospital —    (108,000) —    —    (108,000) (108,000) State of Alaska on-behalf payment 25,095 228 8,090 —    33,413 89,762 Contributions from CHC —    1,147,762 —    —    1,147,762 2,855,835 Internal activity – payments to/from other funds 439,526 (399,400) 10,692 —    50,818 (6,300) Transfers in 13,500 66,500 —    —    80,000 765,490 Net cash provided by noncapital financing activities 478,121 707,090 18,782 —    1,203,993 3,596,787 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (141,655) (333,248) —    —    (474,903) (5,085,768) (Gain) loss on disposal of assets —    —    54,423 —    54,423 (108,899) Interest paid on notes payable and interfund borrowings —    (49,118) (350,787) —    (399,905) (429,052) Principal payments on long-term interfund borrowing —    (67,861) (385,000) —    (452,861) (425,226) Proceeds from issuance of notes payable 125,492 —    —    —    125,492 120,397 Net cash (used) by capital and related financing activities (16,163) (450,227) (681,364) —    (1,147,754) (5,928,548) Cash flows from investing activities: Interest and dividends on investments 124,478 16,702 56,887 8,632 206,699 274,228 Net change in cash and cash equivalents 887,053 794,958 86,974 (16,289) 1,752,696 (233,688) Cash and equivalents, at beginning of year 5,397,764 12,466 3,331,845 30,989 8,773,064 9,006,752 Cash and equivalents, at the end of year $6,284,817 807,424 3,418,819 14,700 10,525,760 8,773,064 (continued) 31 KODIAK ISLAND BOROUGH Statement of Cash Flows Proprietary Funds – Business-type Activities – Enterprise Funds, continued Year ended June 30, 2010 (With summarized financial information for the year ended June 30, 2009) Municipal Kodiak Other Solid Waste Fisheries Nonmajor Collection and Hospital Research Enterprise Totals Disposal Facilities Center Fund 2010 2009 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss)$42,126 (157,903) 25,892 —    (89,885) (528,891) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 270,488 872,858 630,395 —    1,773,741 1,912,852 Changes in assets and liabilities that provided (used) cash: (Increase) decrease in assets: Customer receivables (310,810) (3,261) (466) —    (314,537) 149,502 Increase (decrease) in liabilities: Accounts payable (133,139) (190,301) (472) (24,921) (348,833) (126,085) Accrued compensation and related liabilities 14,405 —    (1,204) —    13,201 17,144 Other accrued liabilities 50,284 —    —    —    50,284 30,395 Unearned revenues —    —    38,524 —    38,524 20,294 Accrual for landfill closure and postclosure costs 367,263 —    —    —    367,263 348,634 Net cash provided (used) by operating activities $300,617 521,393 692,669 (24,921) 1,489,758 1,823,845 See accompanying notes to financial statements. 32 KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 33 (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. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 34 Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds, if applicable, are reported as separate columns in the fund financial statements. (c) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period except for grant revenues which are recognized when the related expenditure is incurred irrespective of when the cash is received. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual and 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 Borough Capital Project Fund accounts for the construction and major maintenance activities for the Borough funded through Federal, State and local sources. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 35 The School Bond Capital Project Fund accounts for the construction and major maintenance activities for the Borough’s educational facilities funded by school bonds. The Other Capital Project Fund accounts for the construction and major maintenance activities for the Borough funded by State sources. The government reports the following major proprietary funds: The Municipal Solid Waste Collection and Disposal Fund accounts for the collection and disposal of solid waste and recycling services for the Kodiak Island Borough. The Hospital Facilities Fund accounts for rents on the Borough owned hospital; hospital related state revenue sharing; and other hospital related revenue. In turn, it purchases hospital equipment and makes debt service payments on hospital related debt. The Kodiak Fisheries Research Center Fund accounts for rents and expenses on the Borough owned Kodiak Fisheries Research Center. The three tenants: NOAA, Alaska Department of Fish & Game and University of Alaska, Fairbanks pay lease funds to participate in this multi-agency research facility committed to the preservation of the North Pacific marine ecosystem and resources. Private sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private sector guidance for their business type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private sector guidance. As a general rule the effect of inter-fund and activity has been eliminated from the government wide financial statements. Exceptions to this general rule are charges between various functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services and lease revenues. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 36 (d) Assets, Liabilities, and Fund Equity/Net Assets Cash and Investments Cash and temporary investments of Borough funds are pooled in a central treasury. Each fund’s portion of this pool is displayed on the balance sheet as “Cash and Investments”. Investments are carried at fair value, as determined by quoted market prices. The Alaska Municipal League Investment Pool (AMLIP) is considered to be an external investment pool as defined by GASB Statement No. 31. AMLIP is not SEC registered. Alaska Statute 37.23 establishes regulatory oversight of the pool. The law sets forth numerous requirements regarding authorized investments and reporting. The pool is incorporated in the State of Alaska as a nonprofit corporation and reports to its Board of Directors. Alaska Statute 37.23.050 requires the retention of an investment manager. The manager is required to produce monthly disclosure statements to the pool. The pool has also retained an investment advisor to ensure compliance with investment policies. All participation in the pool is voluntary. The pool must maintain a dollar weighted average maturity of 90 days or less, and only purchase instruments having remaining maturities of 397 days or less. On a monthly basis, the investments in the pool are reviewed for fair value by an independent pricing service. All highly liquid investments, excluding restricted assets, with original maturities of ninety days or less are considered to be cash equivalents. For purposes of the Statements of Cash Flows, equity in central treasury held by enterprise funds are treated as cash equivalents. Investments for the government, as well as the component unit, are reported at fair value, as determined by quoted market prices. The reported value of the pool is the same as the fair value of the pool shares. Receivables and Payables Activity between funds that are representative of lending /borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of inter-fund loans) or “advances to/from other funds” (i.e., the noncurrent portion of inter-fund loans). Any residual balances outstanding between the governmental activities and business type activities are reported in the government-wide financial statements as “internal balances.” Internal balances used to acquire capital assets are eliminated from the invested in capital assets, net of related debt, portion of net assets. Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. Inventories and Prepaid Items/Expenses Expendable operating supplies of the Borough are accounted for using the purchases 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 KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 37 agreement for the hospital facilities (see note 11a), 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 or expenses in both the government wide and fund financial statements. Prepaid items and expenses are based on the consumption method. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, street lights, and similar items including those acquired prior to fiscal years ended after June 30, 1980), are reported in the applicable governmental or business type activities columns in the government-wide financial statements. Capital assets are defined by the Borough as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business type activities is included as part of the capitalized value of the assets constructed. There was no interest capitalized during the year. Property, plant, and equipment of the primary government is depreciated using the straight line method over the following estimated useful lives: Buildings and improvements 10-40 years Improvements other than buildings 10-15 years Equipment 5-10 years Infrastructure 40 years 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. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 38 In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Interest on long-term obligations is recorded as an expenditure when due. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. Net Assets In the government-wide financial statements, net assets are reported in three categories; net assets invested in capital assets net of related debt, restricted net assets and unrestricted net assets. Net assets are reported as restricted when constraints placed on net asset use are either externally imposed by creditors (such as through debt covenants), grantors, contributors provisions or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. (e) Revenues, Expenditures, and Expenses Property Taxes Property taxes are based on the assessed value of taxable property as of January 1. Pursuant to Alaska Statute 29.45.240, the Borough establishes the mill rate on or before June 15th. Tax bills are then mailed on or before July 1st. 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. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 39 Severance Taxes Severance taxes are based on the amount and value of natural resources severed from the environment. Types of resources taxed include seafood, gravel and mineral resources, and timber. Severance tax returns are sent to appropriate companies (as determined by the Borough Assessor) and are returned to the Borough Finance Department. The returns are filed quarterly, and are due by the end of the month following the quarter’s end. Borough severance tax revenues are recognized in the fiscal year in which they become measurable and available. Intergovernmental Revenue State shared revenues, safe communities, State education related entitlement programs and State levied taxes, the proceeds of which are distributed to local governments, are recorded in the fiscal year to which they relate, including accrual at year end if final payments due are measurable and received within approximately two months after year end. State of Alaska and Federal government cost reimbursable grants and contracts are recorded to the extent of allowable expenditures in the period in which the expenditures were incurred. Operating and Nonoperating Revenue Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Municipal Solid Waste Collection and Disposal Fund and 911 Services Fund are charges to customers for services. The principal operating revenues of the Hospital Facilities Fund and the Kodiak Fisheries Research Center Fund are rents from customers. Operating expenses for proprietary funds include costs of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Revenue from Investments and Property Amounts earned on investment of available cash balances and the rental of building facilities are recorded in the period to which they relate, including accrual at year end of the balance due, and unrealized gains and losses on investments held at fiscal year end. Land Sales Proceeds and Other Local Revenues Amounts received pursuant to land sale contracts are recorded on the modified accrual basis. Other local revenues are recorded on a basis consistent with their nature in relation to measurement and availability standards. (f) Cash Flows All highly liquid investments, excluding restricted assets, with original maturities of three months or less are considered cash equivalents for purposes of the statement of cash flows. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 40 (g) Use of Estimates Preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in these financial statements. Actual results may differ from the estimates. Significant estimates include the allowance for doubtful accounts, the useful lives of assets and related accumulated depreciation, and accrued landfill closure and post-closure care costs. (2) Stewardship, Compliance, and Accountability (a) Excess of Expenditures over Appropriations Special Revenue Funds The following fund expenditures exceeded their budget: Fund Excess Service Area No. 1 $ 5,825 Bay View Road Service Area 1,276 Coastal Management 371 Child Care Assistance Program 899 Land Sales 2,024 Fern Fuller Trust 2 $10,397 (b) Deficit Fund Equity The individual fund deficits at June 30, 2010, are as follows: Special Revenue Funds: Bay View Road Service Area $8,306 Child Care Assistance Program 731 L.E.P.C.14,801 Trinity Islands Paving 61,484 Borough Capital Project Fund 805,463 $890,785 The deficit in the Bay View Road Service Area will be funded by a mill rate increase of one half mill that was started in FY2010. The deficit in the Child Care Assistance Program will be covered by revenues in FY2011. The deficit in the L.E.P.C. fund will be covered by fund revenues in FY2011. The deficit in the Trinity Islands Paving Special Revenue Fund is anticipated to be funded by a special assessment that began in 2006. The deficit in the Borough Capital Projects Fund is anticipated to be funded by a transfer from Fire Protection Area 1 in future periods. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 41 (3) Cash and Investments The Borough participates in the Alaska Municipal League Investment Pool (AMLIP). The Alaska Municipal League Investment Pool, Inc., (AMLIP), represents the Borough’s share of ownership in the pool rather than ownership of specific securities. AMLIP is considered to be an external investment pool as defined by Generally Accepted Accounting Principles. AMLIP is not SEC-registered and is unrated. Regulatory oversight of the pool is established by Alaska Statute 37.23. The law sets forth numerous requirements regarding authorized investments and reporting. The pool is incorporated in the State of Alaska as a nonprofit corporation and reports to a board of directors. Alaska Statute 37.23.050 requires the retention of an investment manager. The AMLIP manager is required to produce monthly disclosure statements on the pool. The pool also has retained an investment adviser who monitors the performance of the investment manager 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. As of September 30, 2010, the fair value of the investments in the pool approximates amortized cost and is equal to the value of pool shares. To obtain a copy of AMLIP’s financial statements contract Key Trust of Alaska at 101 West Benson Blvd., Room 302, Anchorage, AK 99503. As of June 30, 2010, the Borough had the following investments: Fair Value Less than 11 to 5 U.S. agency securities: Federal Home Loan Bank $21,312,880 4,080,000 17,232,880 Federal Home Loan Mortgage Corporation10,109,680 10,109,680 — Federal Farm Credit Bank 7,983,381 1,006,560 6,976,821 Federal National Mortgage Association 6,138,120 4,096,240 2,041,880 Alaska Municipal League Investment Pool 11,650,809 11,650,809 — $57,194,870 30,943,289 26,251,581 Investment Type Investment Maturities (in years) In addition to the investments listed above, Kodiak Island Borough also had cash equivalents of $2,553,326. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 42 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, 2010, 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, 2010, the Borough’s investment in the Alaska Municipal League Investment Pool was unrated. Concentration of Credit Risk The Borough places no limit on the amount the Borough may invest in any one issuer. At June 30, 2010, the Borough had 80% 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. 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, 2010. (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. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 43 (5) Receivables Education and OtherTotal GeneralHealth Debt GovernmentalGovernmental FundService FundBoroughOtherFundsFunds Receivables: Grants $290,877 381,456 — 3,796,259 588,834 5,057,426 Taxes 566,236 — — — 12,496 578,732 Customers and other — — 2,929 69,309 20,070 92,308 Notes receivable 4,519 — — — — 4,519 Gross receivables 861,632 381,456 2,929 3,865,568 621,400 5,732,985 Less: allowance for uncollectibles (15,828) — — — — (15,828) Net total receivables$845,804 381,456 2,929 3,865,568 621,400 5,717,157 Municipal Kodiak Solid Waste FisheriesTotalTotal Total Collection HospitalResearchEnterpriseGovernmentalPrimary and DisposalFacilitiesCenterFundsFundsGovernment Receivables: Grants $100,000 — — 100,000 5,057,426 5,157,426 Taxes — — — — 578,732 578,732 Customers and other 569,875 121,200 532 691,607 92,308 783,915 Notes receivable — — — — 4,519 4,519 Gross receivables 669,875 121,200 532 791,607 5,732,985 6,524,592 Less: allowance for uncollectibles — — — — (15,828) (15,828) Net total receivables$669,875 121,200 532 791,607 5,717,157 6,508,764 Enterprise Funds Governmental Funds Capital Project Funds KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 44 (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, 2010 was as follows: Beginning Ending BalanceIncreaseDecreaseBalance Governmental activities: Capital assets, not being depreciated: Land $23,072,753 394,551 — 23,467,304 Construction work-in-progress 30,677,298 11,679,370 (11,266,094) 31,090,574 Total 53,750,051 12,073,921 (11,266,094) 54,557,878 Capital assets, being depreciated: Buildings and improvements90,579,601 4,562,155 (74,215) 95,067,541 Improvements other than buildings 4,681,699 6,703,762 — 11,385,461 Equipment 2,753,123 49,533 (32,660) 2,769,996 Infrastructure 5,762,722 — — 5,762,722 Total 103,777,145 11,315,450 (106,875) 114,985,720 Less accumulated depreciation for: Buildings and improvements54,964,054 2,290,398 (74,215) 57,180,237 Improvements other than buildings 3,658,438 359,837 — 4,018,275 Equipment 1,557,888 118,293 (32,660) 1,643,521 Infrastructure 4,211,121 144,068 — 4,355,189 Total 64,391,501 2,912,596 (106,875) 67,197,222 Total capital assets being depreciated, net39,385,644 8,402,854 — 47,788,498 Total governmental activities, net$93,135,695 20,476,775 (11,266,094) 102,346,376 KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 45 Beginning Ending BalanceIncreaseDecreaseBalance Business-type activities: Municipal Solid Waste Collection and Disposal Fund capital assets, not being depreciated: Land $1,651,248 — — 1,651,248 Construction work-in-progress624,408 141,655 — 766,063 Total 2,275,656 141,655 — 2,417,311 Capital assets, being depreciated: Unclassified utility plant in service 2,178,733 — — 2,178,733 Improvements other than buildings 2,288,438 — — 2,288,438 Machinery and equipment 1,752,726 — 1,752,726 Total 6,219,897 — — 6,219,897 Less accumulated depreciation for: Unclassified utility plant in service 999,502 43,744 — 1,043,246 Improvements other than buildings 791,384 126,073 — 917,457 Machinery and equipment 1,101,648 100,671 — 1,202,319 Total 2,892,534 270,488 — 3,163,022 Total capital assets being depreciated, net3,327,363 (270,488) — 3,056,875 Total Municipal Solid Waste Collection and Disposal Fund, net$5,603,019 (128,833) — 5,474,186 KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 46 Beginning Ending BalanceIncreaseDecreaseBalance Hospital Facilities Fund capital assets, not being depreciated: Artwork $16,091 — — 16,091 Land 10,251 — — 10,251 Construction work-in-progress 5,628,295 333,248 — 5,961,543 Total 5,654,637 333,248 — 5,987,885 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 11,793,251 788,388 — 12,581,639 Improvements other than buildings 140,417 14,176 — 154,593 Machinery and equipment 3,147,336 70,294 — 3,217,630 Total 15,081,004 872,858 — 15,953,862 Total capital assets being depreciated, net 16,078,154 (872,858) — 15,205,296 Total Hospital Facilities Fund, net $21,732,791 (539,610) — 21,193,181 Kodiak Fisheries Research Center Fund capital assets, being depreciated: Buildings $17,840,410 — — 17,840,410 Improvements other than buildings 1,103,911 — (55,151)1,048,760 Machinery and equipment 1,157,540 — — 1,157,540 Total 20,101,861 — (55,151)20,046,710 Less accumulated depreciation for: Buildings 5,945,041 594,681 — 6,539,722 Improvements other than buildings 343,169 33,426 — 376,595 Machinery and equipment 1,149,618 2,288 — 1,151,906 Total 7,437,828 630,395 — 8,068,223 Total Kodiak Fisheries $12,664,033 (630,395) (55,151) 11,978,487 KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 47 Beginning Ending BalanceIncreaseDecreaseBalance Total business-type activities: Capital assets, not being depreciated: Artwork $16,091 — — 16,091 Land 1,661,499 — — 1,661,499 Construction work-in-progress6,252,703 474,903 — 6,727,606 Total 7,930,293 474,903 — 8,405,196 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 3,793,395 (55,151) 3,738,244 Machinery and equipment 6,537,334 — — 6,537,334 Total 57,480,916 — (55,151) 57,425,765 Less accumulated depreciation for: Unclassified utility plant in service 999,502 43,744 — 1,043,246 Buildings 17,738,292 1,383,069 — 19,121,361 Improvements other than buildings 1,274,970 173,675 — 1,448,645 Machinery and equipment 5,398,602 173,253 — 5,571,855 Total 25,411,366 1,773,741 — 27,185,107 Total capital assets being depreciated, net32,069,550 (1,773,741) (55,151) 30,240,658 Total business-type activities, net $39,999,843 (1,298,838) (55,151) 38,645,854 KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 48 Depreciation expense was charged to the departments and functions of the primary government as follows: Governmental activities: General government $323,900 Public safety 110,272 Emergency preparedness 2,500 Health and sanitation department 34,766 Primary and secondary education 2,441,158 Total – governmental activities 2,912,596 Business-type activities: Municipal solid waste collection and disposal 270,488 Hospital facilities 872,858 Kodiak fisheries research center 630,395 Total – business-type activities 1,773,741 Total $4,686,337 (7) Interfund Receivables, Payables and Transfers (a) Interfund Receivables and Payables Interfund balances at June 30, 2010 consisted of the following: Education and Health Debt Service Fund Borough Capital Projects Fund School Bond Capital Project Fund Other Capital Project Fund Municipal Solid Waste Collection and Disposal Enterprise Fund Hospital Facilities Enterprise Fund Kodiak Fisheries Research Center Enterprise Fund Other Govern - mental FundsTotal General Fund$400,000 109,107 — — — — — — 509,107 Facilities Special Revenue Fund — — — — 39,526 1,176,864 4,915,000 161,528 6,292,918 School Bond Capital Projects Fund — 1,093,039 — 1,000,651 — — 103,442 22,868 2,220,000 Other Governmental Funds — — 8,562 — — 600 — 27,088 36,250 Total $400,000 1,202,146 8,562 1,000,651 39,526 1,177,464 5,018,442 211,484 9,058,275 Du e t o Due From KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 49 The balance of $4,915,000 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. $4,505,000 is not scheduled to be paid in FY2011. The balance of $1,176,864 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. $1,106,261 is not scheduled to be paid in FY2011. 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: PrincipalInterest Total Year ending June 30: 2011 $410,000 329,700 739,700 2012 440,000 299,950 739,950 2013 470,000 268,100 738,100 2014 500,000 234,150 734,150 2015 540,000 197,750 737,750 2016-2019 2,555,000 372,925 2,927,925 $4,915,000 1,702,575 6,617,575 In July 2003, the Facilities Special Revenue Fund loaned $1,600,000 to the Hospital Facilities Enterprise Fund in order to help fund current operations. The loan from the Facilities Special Revenue Fund is accounted for as a long-term interfund advance, while the liability in the Hospital Facilities Enterprise Fund is accounted for as a long-term interfund borrowing. The advance bears interest at 4%, and the scheduled payments for the next five fiscal years and thereafter are as follows: KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 50 PrincipalInterest Total Year ending June 30: 2011 $70,603 46,375 116,978 2012 73,455 43,523 116,978 2013 76,423 40,556 116,979 2014 79,510 37,468 116,978 2015 82,723 34,256 116,979 2016-2020 466,527 118,366 584,893 2021-2024 327,623 23,312 350,935 $1,176,864 343,856 1,520,720 (c) Transfers Interfund transfers have been made in accordance with budget ordinances. Funds are transferred from one fund to support expenditures of other funds in accordance with the authority established for the individual fund. Transfers between fund types during the year ended June 30, 2010, were as follows: EducationBoroughOther Municipal and HealthCapital CapitalOtherSolid WasteHospital Debt ServiceProjectProjectGovernmentalCollection andFacilities FundFundFundFundsDisposal FundFundTotals Major Governmental Funds: General Fund $1,357,674 — — 108,000 13,500 — 1,479,174 Facilities Special Revenue Funds565,595 — — 702,000 — — 1,267,595 — 369,499 — — — — 369,499 Other Governmental Funds — — 95,000 13,427 — 66,500 174,927 Total transfers$1,923,269 369,499 95,000 823,427 13,500 66,500 3,291,195 Transfers In Transfers Out Enterprise FundsGovernmental Funds A summary of significant transfers are as follows: • The General Fund transferred $1,357,674 to the Education and Health Debt Service Fund to pay for debt service on general government debt. • The General Fund transferred $108,000 to the Building and Grounds Special Revenue Fund to pay additional snow removal costs at school sites. • The General Fund transferred $13,500 to the Municipal Solid Waste Collection and Disposal Fund to pay for garbage disposal for area thrift shops. • The Facilities Special Revenue Fund transferred $565,595 to the Education and Health Debt Service Fund for debt service on school district and hospital bonds. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 51 • The Facilities Special Revenue Fund transferred $202,000 to the Building and Grounds Special Revenue Fund for to pay additional snow removal costs at school sites. • The Facilities Special Revenue Fund transferred $500,000 to the State Capital Grants Fund to pay for capital improvements. • The Other Capital Project Fund transferred $369,499 to the Borough Capital Projects Fund to pay for capital improvements. • The Buildings and Grounds Special Revenue Fund transferred $95,000 to the Other Capital Project Fund to pay for capital improvements. • The Kodiak Airport Fire District Fund transferred $13,427 to the Womens Bay Fire Department Fund to pay for public safety related costs. • The Fern Fuller Trust Special Revenue Fund transferred $66,500 to the Hospital Facilities Enterprise Fund for the purchase of new equipment. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 52 (8)Long Term Debt (a) General Obligation Bonds and other debt Interest Principal payments Type of debt Rates DatesIssue dateMaturit y datesDatesAmount General obligation bonds – 2000 E Series4.75-5.0%8/1-2/112/12/20002/1/20112/1/2011180,000 180,000 General obligation bonds – 2000 F Series6.9-9.0%8/1-2/112/12/20002/1/20112/1/2011160,000 160,000 General Obligation bonds – 2004 C Series4.0-5.0%1/1-7/17/21/20047/1/20247/1/2011385,000 7/1/2012400,000 7/1/2013415,000 7/1/2014435,000 7/1/2015450,000 7/1/2016470,000 7/1/2017485,000 7/1/2018510,000 7/1/2019530,000 7/1/2020555,000 7/1/2021580,000 7/1/2022605,000 7/1/2023635,000 7/1/2024665,000 7,120,000 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: KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 53 Authorized Prior years Balance at Retired/Balance at Fiscal yearAmountIssuedRetiredJuly 1, 2009IssuedRefundedJune 30, 2010 20011,485,000 1,485,000 1,130,000 355,000 — 175,000 180,000 20011,175,000 1,175,000 865,000 310,000 — 150,000 160,000 20049,300,000 9,300,000 1,815,000 7,485,000 — 365,000 7,120,000 KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 54 Interest Principal payments Type of debt Rates DatesIssue dateMaturity datesDatesAmount General obligation bonds – 2004 B Series3.0-5.0%5/1-11/112/1/200411/1/202411/1/2010460,000 11/1/2011475,000 11/1/2012490,000 11/1/2013510,000 11/1/2014530,000 11/1/2015550,000 11/1/2016570,000 11/1/2017595,000 11/1/2018620,000 11/1/2019650,000 11/1/2020675,000 11/1/2021705,000 11/1/2022740,000 11/1/2023775,000 11/1/2024815,000 9,160,000 General obligation bonds – 2008 A Series4.0-5.0%4/1-10/1 4/1/202804/01/11275,000 04/01/12290,000 04/01/13300,000 04/01/14320,000 04/01/15335,000 04/01/16350,000 04/01/17370,000 04/01/18380,000 04/01/19400,000 04/01/20415,000 04/01/21430,000 04/01/22450,000 04/01/23470,000 04/01/24490,000 04/01/25515,000 04/01/26540,000 04/01/27565,000 04/01/28595,000 7,490,000 KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 55 Authorized Prior years Balance at Retired/Balance at Fiscal yearAmountIssuedRetiredJuly 1, 2009IssuedRefundedJune 30, 2010 200411,050,000 11,050,000 1,445,000 9,605,000 445,000 9,160,000 20088,000,000 8,000,000 250,000 7,750,000 — 260,000 7,490,000 KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 56 Interest Principal payments Type of debt Rates DatesIssue dateMaturit y datesDatesAmount General obligation bonds – 2009 A Series4.0%2/1-8/14/9/20092/1/201402/01/111,285,000 02/01/121,335,000 02/01/131,390,000 02/01/141,445,000 5,455,000 ADEC loans Clean water – Karluk3.92 – 4.05%******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 60,899 $29,625,899 KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 57 Authorized Prior years Balance at Retired/Balance at Fiscal yearAmountIssuedRetiredJuly 1, 2009IssuedRefundedJune 30, 2010 20096,740,000 6,740,000 — — 6,740,000 1,285,000 5,455,000 1998400,000 97,019 27,683 66,505 — 5,606 60,899 $38,150,000 37,847,019 5,532,683 25,571,505 6,740,000 2,685,606 29,625,899 KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 58 The annual requirements to amortize all general obligation bonded debt and the ADEC loan payable outstanding as of June 30, 2010, are as follows: GeneralADEC obligationloan payableTotalInterest Year ending June 30: 2011 2,745,000 5,690 2,750,690 1,287,423 2012 2,500,000 5,775 2,505,775 1,169,023 2013 2,595,000 5,862 2,600,862 1,067,148 2014 2,710,000 5,950 2,715,950 961,086 2015 1,315,000 6,039 1,321,039 848,996 2016-2020 8,125,000 25,077 8,150,077 3,355,168 2021-2025 7,875,000 6,506 7,881,506 1,533,626 2026-2028 1,700,000 — 1,700,000 172,210 $29,565,000 60,899 29,625,899 10,394,680 There was $22,255 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) Note Payable As of June 30, 2010, the Borough had the following note payable outstanding in the Enterprise Funds: Note payable to Alaska Department of Environmental Conservation (ADEC), to be paid within 20 years. From June 2, 1999 until April 28, 2005 interest accrued at 2.5%. From April 29, 2005 to June 30, 2008 interest accrued at 1.5%. The first loan payment is due one year following substantial completion and initiation of operation of the facility $1,989,995 KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 59 (c) Changes in Long-term Liabilities Long-term liability activity for the year ended June 30, 2010, was as follows: Balance Balance June 30,June 30,Due within 2009AdditionsReductions2010one year Governmental activities: Bonds payable: General obligation bonds$32,245,000 — 2,680,000 29,565,000 2,745,000 Bond premium 289,424 — 15,992 273,432 15,992 32,534,424 — 2,695,992 29,838,432 2,760,992 ADEC loans 66,505 — 5,606 60,899 5,690 Compensated absences 234,236 234,236 235,415 233,057 233,057 Total $32,835,165 234,236 2,937,013 30,132,388 2,999,739 Business-type activities: Municipal Solid Waste Collection and Disposal: Landfill closure and post-closure costs $4,390,364 367,263 — 4,757,627 — Notes payable 1,864,503 125,492 — 1,989,995 — Total $6,254,867 492,755 — 6,747,622 — Hospital Facilities: Long term interfund borrowings $1,244,725 — 67,861 1,176,864 70,603 Total $1,244,725 — 67,861 1,176,864 70,603 Kodiak Fisheries Research Center: Long term interfund borrowings $5,300,000 — 385,000 4,915,000 410,000 Total $5,300,000 — 385,000 4,915,000 410,000 Business-type activities: Landfill closure and post- closure costs $4,390,364 367,263 — 4,757,627 — Long term interfund borrowings 6,544,725 — 452,861 6,091,864 480,603 Notes payable 1,864,503 125,492 — 1,989,995 — Total $12,799,592 492,755 452,861 12,839,486 480,603 For governmental activities, compensated absences are generally liquidated by the General Fund. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 60 (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 $4,757,627 as of June 30, 2010, which is based on 80% 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, 2010, an increase of $367,263 was recorded in the current year based on current year usage and changes in estimates. An estimated additional $1,185,886 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 $5,943,513 is based on the amount that would be paid if the landfill were closed as of June 30, 2010. However, the actual cost of closure and post closure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The Kodiak Island Borough is required by state and federal laws and regulations to make annual contributions to finance closure and post closure care. The Kodiak Island Borough complies with these requirements by annually recording the liability based on the estimates provided by the Kodiak Island Borough’s Engineering/Facilities Director. It is anticipated that future inflation costs and additional costs that might arise from changes in post closure requirements, due to changes in technology or more rigorous environmental regulations, for example, will be financed primarily by charges to future landfill users and secondarily by taxpayers. (10) Insurance and Risk Retention The Kodiak Island Borough is exposed to numerous risks of loss associated with the operations of a government. These potential losses include, but are not limited to, employee relations and injuries, contracts, theft, loss or damage of property and general liability. The Borough manages its risks from these potential losses by participating in the Alaska Municipal League Joint Insurance Association, as well as purchasing commercial insurance coverage. This insurance has provided the Borough with adequate coverage in the past. There were no significant changes in insurance coverage obtained and there were no claims or settlements that exceeded insurance coverage in any of the past three fiscal years. The Borough is a member in good standing of the Alaska Municipal League Joint Insurance Association (JIA), a governmental insurance pool established by the Alaska Municipal League. Claims are covered on an occurrence basis. JIA provides risk management services, appraisal services and there is also a separate pool for policy liability. The Kodiak Island Borough Finance Director, the Kodiak Island Borough Manager, and the Kodiak Island Borough Mayor are all members of the Board of Directors of the JIA. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 61 The responsibilities of both JIA and the participants are as follows: (a) Responsibilities of JIA JIA shall perform the following instructions in discharging its responsibilities: • Provide insurance coverage as necessary for property, including building and contents, automobile, mobile equipment and data processing equipment, casualty, including general liability, public officials’ and employees’ liability, auto liability and employee benefit liability; workers’ compensation, including employers’ liability; commercial blanket bond; and time element. • Assist each participant’s assigned risk manager with the implementation of that function. • Provide loss prevention and safety and consulting services to participants as required. • Provide claims adjusting and subrogation services for claims covered by the association’s joint insurance arrangement. (b) Responsibilities of the Participants The Participants shall have the following responsibilities: • The Borough Assembly or appointing official of each participant shall appoint a representative as provided in Article 5, Section 2 of the bylaws and at least one alternate representative to attend member meetings. • Each participant shall appoint an employee of the participant to be responsible for the risk management function within that entity and to serve as a liaison between the participant and JIA with respect to risk management. • Each participant shall maintain an active safety officer and/or committee, and shall comply with all recommendations of JIA concerning the development and implementation of a loss control policy to prevent unsafe practices. • Each participant shall maintain its own set of records as a loss log, in all categories of loss to insure accuracy of JIA’s loss reporting system. (11) Rental Revenues (a) Hospital Facilities Enterprise Fund The Kodiak Island Borough Assembly leases the Kodiak Island Hospital and Care Center premise and equipment to Sisters of Providence d.b.a. Providence Kodiak Island Medical Center who assumed responsibility for the hospital’s operations as of April 21, 1997. The lease agreement is effective for a term of twenty years from that date. The lease is cancelable by either party with a one year notice. The hospital capital assets, the lease income, and all other costs relating to the agreement are accounted for by the Borough in the Hospital Facilities Enterprise Fund. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 62 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 $37,500 in 2010 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 $48,000 in 2010 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 $389,595. Operational and maintenance expenses are adjusted every five years to actual costs. The lease with UAF was originally 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. However, during FY10, UAF notified the Borough that they would be cancelling the lease effective September 1, 2010. As of the issue date of the financial statements, the Borough and UAF were in negotiations regarding a new lease. (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. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 63 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. Summary of Significant Accounting Policies. PERS financial statements are prepared using the accrual basis of accounting. Plan 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 KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 64 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. 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% (2.44% pension cost and 4.31% 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 27.65% (10.01% pension cost and 17.64% 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 2010, the Borough annual pension cost of $533,244 for PERS was equal to the Borough’s actual contributions. The State of Alaska contributed $150,602 on behalf of the Borough. Alaska Public Employee Retirement System (PERS) – Defined Contribution Plan Plan Description and Funding Requirements. Boroughs 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 0.83% of retiree medical plan, 0.30% occupational and death and disability benefits and 3% of employers average annual employee compensation of the health reimbursement arrangement (HRA). The employer effective contribution rate is 22%. 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% KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 65 Plan provisions and contribution requirements and amendments are established by the Alaska Retirement Management Board (ARMB). Total contributions for the year ended June 30, 2010 are as follows: Employer Employee Defined contribution $ 9,498 15,196 Retiree medical plan 1,585 - Occupational health and disability benefits 585 - Health reimbursement agreement (HRA) 7,443 - Defined benefit unfunded liability (DBUL) 24,577 - Actual contributions were equal to the annual required contributions. 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, 2010, was $157,408. The first plan is managed by the International Borough Managers Association Retirement Corporation. $63,727 was contributed to this plan during the year ended June 30, 2010. 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. $93,681 was contributed to this plan during the year ended June 30, 2010. The Borough believes that the plan does not meet the criteria for inclusion as a fiduciary fund. (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. (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. KODIAK ISLAND BOROUGH Notes to Basic Financial Statements June 30, 2010 66 (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 a final payout of $522,059 subsequent to year end, but before the issuance of the financial statements. (14) Subsequent Events Management have evaluated subsequent events through January 25, 2011, the date which the financial statements were available for issue. (15) Restatements Certain amounts have been restated in the prior year to conform to the current year presentation. (16) Construction Commitments The Borough has outstanding commitments for construction at year end of $4,989,450. REQUIRED SUPPLEMENTARY INFORMATION   6767 l l s 1 567 075 1 469 238 1 816 471 347 233 2 040 436 KODIAK ISLAND BOROUGH Budgetary Comparison Schedule General Fund Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget – Budget Positive 2009 Original Final Actual (Negative)Actual Revenues: Property taxes: Real $8,452,508 8,342,508 8,420,010 77,502 8,029,453 Personal 1,134,150 1,055,150 1,046,934 (8,216) 1,092,850 Boat 50,000 23,000 22,548 (452) 24,017 Motor vehicle 250,000 250,000 260,739 10,739 274,462 Penalty and interest 175,000 175,000 132,876 (42,124) 132,471 Total property taxes 10,061,658 9,845,658 9,883,107 37,449 9,553,253 Intergovernmental: State sources: State Revenue Sharing 966,706 747,706 748,189 483 777,571 Raw fish tax 1,100,000 1,339,575 1,339,575 — 1,288,926 Fish revitalization 50,000 17,970 68,855 50,885 55,382 Commercial Passenger Vessel Tax — 25,500 25,487 (13) 24,778 Electric Co-op tax 26,000 26,000 26,716 716 27,524 On behalf PERS payment — 219,000 98,214 (120,786) 247,007 Total state sources 2,142,706 2,375,751 2,307,036 (68,715) 2,421,188 Federal sources: Payments in lieu of taxes 1,217,000 1,217,000 1,361,593 144,593 1,775,015 Fish and Wildlife revenue sharing 350,000 252,163 249,859 (2,304) 262,694 Community Stimulus Grant — — 202,640 202,640 — Schools and Roads - Grants to States 75 75 2,379 2,304 2,727 Total federal sourcesTota federa source 1 567 075,, 1 469 238,, 1 816 471,, 347 233, 2 040 436,, Total intergovernmental revenue 3,709,781 3,844,989 4,123,507 278,518 4,461,624 Severance taxes: Fish 1,400,000 1,400,000 1,287,693 (112,307) 1,289,695 Mining 12,600 12,600 19,762 7,162 14,001 Logging 20,000 20,000 28,620 8,620 7,492 Total severance taxes 1,432,600 1,432,600 1,336,075 (96,525) 1,311,188 Licenses, permits, fees, and other local revenues: Building and trailer permits 45,000 65,000 64,010 (990) 52,002 Subdivision and zoning fees 4,500 4,500 4,075 (425) 6,075 Sale of copies 8,000 8,000 3,234 (4,766) 7,340 Total licenses, permits, fees, and other local revenues 57,500 77,500 71,319 (6,181) 65,417 Investment income 105,000 155,000 178,567 23,567 292,825 Other 34,750 34,750 38,352 3,602 131,944 Total revenues 15,401,289 15,390,497 15,630,927 240,430 15,816,251 (continued) 6868 KODIAK ISLAND BOROUGH Budgetary Comparison Schedule General Fund, continued Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Actual Amounts Final Budget – Budget Budgetary Basis Positive 2009 Original Final (see Note A)(Negative)Actual Expenditures: General government: General and administration $298,800 298,800 264,451 34,349 246,765 Borough assembly 184,460 184,460 164,856 19,604 161,128 Borough manager 387,587 387,587 421,554 (33,967) 407,768 Borough clerk 468,174 468,174 467,653 521 464,767 Borough attorney 128,000 128,000 91,867 36,133 66,585 Finance department 774,940 774,940 767,100 7,840 692,596 Management information systems 748,430 748,430 670,731 77,699 487,354 Assessing department 484,788 484,788 377,787 107,001 486,325 Engineering/facilities department 144,668 204,668 202,879 1,789 181,046 Total general government 3,619,847 3,679,847 3,428,878 250,969 3,194,334 Public safety - animal control 82,500 84,125 84,125 — 84,125 Community and economic development Community development department 856,792 856,792 632,109 224,683 691,604 Building official 153,778 153,778 157,013 (3,235) 90,016 Economic development 75,000 75,000 45,358 29,642 43,500 Total community and economic development 1,085,570 1,085,570 834,480 251,090 825,120 Emergency preparedness 8,800 8,800 8,011 789 12,488 Health and sanitation department 268,000 268,000 265,626 2,374 232,699 Education, culture, and recreation 111,034 111,034 105,182 5,852 161,571 Pk d tiParks and recreation 36 00036,000 36 00036,000 — 36 00036,000 — Kodiak College and city libraries 93,000 93,000 87,000 6,000 87,000 Primary and secondary education 11,308,619 9,980,350 9,980,350 — 9,956,618 Total expenditures 16,613,370 15,346,726 14,793,652 553,074 14,553,955 Excess of revenues over expenditures (1,212,081) 43,771 837,275 793,504 1,262,296 Other financing (uses): Transfers out (49,500) (1,449,769) (1,479,174) — (1,368,486) Change in fund balance $(1,261,581) (1,405,998) (641,899) 793,504 (106,190) Fund balance, at beginning of year 3,124,289 3,230,479 Fund balance, at end of the year $2,482,390 3,124,289 Note A: This schedule does not include expenditures of $99,714 on a multi year community development project. These costs are accumulated in the Community Development Fund which is combined with the General Fund for the Basic Financial Statements. Note B:See accompanying notes to required supplementary information 6969 KODIAK ISLAND BOROUGH Budgetary Comparison Schedule Special Revenue Fund – Facilities Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget – Budget Positive 2009 Original Final Actual (Negative)Actual Revenues: Investment income $1,000,000 1,000,000 939,782 (60,218) 1,337,694 Expenditures: Contingencies 29,405 29,405 — 29,405 — Excess of revenues over expenditures 970,595 970,595 939,782 (30,813) 1,337,694 Other financing sources (uses): Transfers out (1,267,595) (1,267,595) (1,267,595) — (1,514,540) Change in fund balance $(297,000) (297,000) (327,813) (30,813) (176,846) Fund balance, at beginning of year 39,693,012 39,869,858 Fund balance, at end of year $39,365,199 39,693,012 See accompanying notes to required supplementary information                     (This page was intentionally left blank)  KODIAK ISLAND BOROUGH Notes to Required Supplementary Information – Budgetary Comparison Schedules June 30, 2010 70 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 lapse at year end to the extent that they have not been expended for all funds, except Capital Projects Funds, which lapse at project completion. • Budgets adopted by the Borough Assembly are in accordance with accounting principles generally accepted in the United States of America. • The Borough published a separate 2010 budget document. That document may be obtained from the Kodiak Island Borough, Director of Finance, 710 Mill Bay Road, Kodiak, Alaska 99615.                     (This page was intentionally left blank)  ADDITIONAL SUPPLEMENTARY INFORMATION   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.   7171 er)ure (1 923 269)(1 906 952)16 317 (1 781 769) KODIAK ISLAND BOROUGH Budgetary Comparison Schedule Debt Service Fund - Education and Health Year ended June 30, 2010 (With summarized financial information for the year ended June 30, 2009) 2010 Variance with Original Final Budget – and Final Positive 2009 Budget Actual (Negative)Actual Revenues: Intergovernmental: State sources $2,152,530 2,139,628 (12,902) 2,146,506 Investment income 1,000 (1,950) (2,950) 8,718 Premium on bonds — — — 198,235 Total revenues 2,153,530 2,137,678 (15,852) 2,353,459 Expenditures: General government 40,566 8,404 32,162 242 Debt service: Prinicpal 2,685,607 2,685,606 1 2,495,056 Interest 1,350,626 1,350,620 6 1,571,295 Debt issuance — — — 68,635 Total expenditures 4,076,799 4,044,630 32,169 4,135,228 Excess (deficiency) of revenues over (under)expendituresover (und expendit s (1 923 269),, (1 906 952),, 16 317, (1 781 769),, Other financing sources (uses): Transfers in 1,923,269 1,923,269 — 1,923,036 Refunding bonds issued — — — 6,740,000 Payment to refunded bond escrow agent — — — (6,865,467) Net other financing sources (uses)1,923,269 1,923,269 — 1,797,569 Change in fund balance $— 16,317 16,317 15,800 Fund balance (deficit), at beginning of year 5,938 (9,862) Fund balance, at end of year $22,255 5,938                     (This page was intentionally left blank)  KODIAK ISLAND BOROUGH Combining Balance Sheet Nonmajor Governmental Funds June 30, 2010 (With summarized financial information at June 30, 2009) Special Capital Revenue Project Assets Funds Funds 2010 2009 Equity in central treasury $4,166,914 361,932 4,528,846 3,860,381 Receivables: State of Alaska 25,885 479,476 505,361 54,064 Federal Government —    83,473 83,473 63,034 Property taxes 12,496 —    12,496 12,872 Land sales contracts, due within one year 11,077 —    11,077 41,558 Other 20,070 —    20,070 33,122 Due from other funds 36,250 —    36,250 419,000 Land sale contracts, due after one year 34,342 —    34,342 172,449 Total $4,307,034 924,881 5,231,915 4,656,480 Liabilities and Fund Balances Liabilities: Accounts payable $185,272 191,898 377,170 235,612 Customer deposits 1,258 —    1,258 700 Due to other funds 189,933 21,551 211,484 179,316 Unearned revenues 38,485 48,000 86,485 212,197 Total liabilities 414,948 261,449 676,397 627,825 Fund Balances: Unreserved: Designated for subsequent year expenditures 356,820 —    356,820 387,668 Undesignated 3,535,266 663,432 4,198,698 3,639,987 Total fund balances 3,892,086 663,432 4,555,518 4,027,655 Total $4,307,034 924,881 5,231,915 4,655,480 Totals 72 KODIAK ISLAND BOROUGH Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year ended June 30, 2010 (With summarized financial information for year ended June 30, 2009) Special Capital Revenue Project Funds Funds 2010 2009 Revenues: Property taxes and assessments $1,110,068 —    1,110,068 1,012,432 Intergovernmental: State sources 61,516 2,053,857 2,115,373 627,706 Federal sources 105,250 332,580 437,830 531,391 Land sale proceeds 138,867 —    138,867 30,561 Licenses, permits, fees, and other local revenues 669,874 —    669,874 677,110 Investment income 71,757 4,841 76,598 132,274 Other 117,610 639 118,249 88,562 Total revenues 2,274,942 2,391,917 4,666,859 3,100,036 Expenditures: Current: General government 1,163,319 —    1,163,319 872,448 Public safety 418,366 —    418,366 376,701 Community and economic development 100,492 —    100,492 83,381 Health and sanitation department 105,695 —    105,695 101,048 Service district maintenance 543,897 —    543,897 398,219 Capital outlay: Schools —    13,022 13,022 289,085 General —    2,436,453 2,436,453 604,786 Debt service - interest 6,252 —    6,252 7,113 Total expenditures 2,338,021 2,449,475 4,787,496 2,732,781 Excess (deficiency) of revenues over (under) expenditures (63,079) (57,558) (120,637) 367,255 Other financing sources (uses): Transfers in 323,427 500,000 823,427 259,975 Transfers out (174,927) —    (174,927) (79,475) Net other financing sources (uses)148,500 500,000 648,500 180,500 Change in fund balances 85,421 442,442 527,863 547,755 Fund balances, at beginning of year 3,806,665 220,990 4,027,655 3,479,900 Fund balances, at end of year $3,892,086 663,432 4,555,518 4,027,655 Totals 73 NONMAJOR SPECIAL REVENUE FUNDS The Fire Protection Area No. 1 Fund accounts for the activities related to fire suppression and fire prevention services to the citizens of the service area. The Womens Bay Fire Department Fund accounts for the activities related to fire suppression and fire prevention services to the citizens of the service area. The Kodiak Airport Fire District Fund accounts for the activities related to fire suppression and fire prevention services to the citizens of the service area. The Monashka Bay Road Service Area Fund accounts for the activities related to road services within the service area. The Service Area No. 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. (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.                     (This page was intentionally left blank)  KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Combining Balance Sheet June 30, 2010 (With summarized financial information at June 30, 2009) Fire and Road Service Areas FireRoad FireWomens Kodiak Monashka ProtectionBay FireAirport FireBay Road Service AssetsArea No. 1DepartmentDistrictService AreaArea No. 1 Equity in central treasury$1,016,237 327,180 34,097 5,226 529,323 Receivables: State of Alaska— — — — — Property taxes5,447 1,329 33 486 3,154 Land sales contracts, due within one year — — — — — Other — — — — — Due from other funds— — — — — Land sale contracts, due after one year — — — — — Total$1,021,684 328,509 34,130 5,712 532,477 Liabilities and Fund Balances (Deficits) Liabilities: Accounts payable17,933 1,373 — 1,337 87,555 Customer deposits— 550 — — — Due to other funds15,393 119 — — — Unearned revenues— 4,144 — — — Total liabilities33,326 6,186 — 1,337 87,555 Fund balances (deficits): Unreserved: Designated for subsequent year expenditures40,000 — — — 130,000 Undesignated 948,358 322,323 34,130 4,375 314,922 Total fund balances (deficits)988,358 322,323 34,130 4,375 444,922 Total $1,021,684 328,509 34,130 5,712 532,477 74 Fire and Road Service Areas Child Care Womens BayBay View Road Service AreaCoastalAssistance Service AreaService AreaNo. 2ManagementProgram L.E.P.C.Land Sales 157,510 4,094 5,521 27,691 133 4,798 1,099,674 — — — 8,241 5,725 11,919 — 2,023 — — — — — — — — — — — — 11,077 — — — — — — — — — — — — — 36,250 — — — — — — 34,342 159,533 4,094 5,521 35,932 5,858 16,717 1,181,343 25,442 2,400 — 1,834 305 5,650 — — — — — — — — 84 10,000 — 140 6,284 25,868 9,207 — — — — — — 34,341 25,526 12,400 — 1,974 6,589 31,518 43,548 — — — — — — 116,820 134,007 (8,306) 5,521 33,958 (731) (14,801) 1,020,975 134,007 (8,306) 5,521 33,958 (731) (14,801) 1,137,795 159,533 4,094 5,521 35,932 5,858 16,717 1,181,343 (Continued) Federal and State Grant ProgramsRoad 75 Woodland Buildings Acres StreetTrinity Islands and Light ServiceStreet LightTourism Mission Lake AssetsGroundsAreaService AreaDevelopmentTide Gate Equity in central treasury$266,412 13,035 7,455 80,557 16,920 Receivables: State of Alaska— — — — — Property taxes— 24 — — — Land sales contracts, due within one year — — — — — Other 356 — — 19,714 — Due from other funds— — — — — Land sale contracts, due after one year — — — — — Total$266,768 13,059 7,455 100,271 16,920 Liabilities and Fund Balances (Deficits) Liabilities: Accounts payable30,850 440 153 10,000 — Customer deposits600 — — 108 — Due to other funds7,590 — — — 205 Unearned revenues— — — — — Total liabilities39,040 440 153 10,108 205 Fund balances (deficits): Unreserved: Designated for subsequent year expenditures— — — — — Undesignated 227,728 12,619 7,302 90,163 16,715 Total fund balances (deficits)227,728 12,619 7,302 90,163 16,715 Total $266,768 13,059 7,455 100,271 16,920 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Combining Balance Sheet, (continued) June 30, 2010 Street Lighting Districts 76 Fern FullerTrinity IslandsTotals TrustPaving20102009 517,492 53,559 4,166,914 3,701,529 — — 25,885 24,502 — — 12,496 12,872 — — 11,077 41,598 — — 20,070 33,082 — — 36,250 419,000 — — 34,342 172,449 517,492 53,559 4,307,034 4,405,032 — — 185,272 206,154 — — 1,258 700 — 115,043 189,933 179,316 — — 38,485 212,197 — 115,043 414,948 598,367 70,000 — 356,820 387,668 447,492 (61,484) 3,535,266 3,418,997 517,492 (61,484) 3,892,086 3,806,665 517,492 53,559 4,307,034 4,405,032 77 Fire and Road Service Areas FireRoad FireWomens KodiakMonashka ProtectionBay FireAirport FireBay Road Area No. 1DepartmentDistrict Service Area Revenues: Property taxes and assessments $455,709 70,267 13,748 52,368 Intergovernmental: State sources4,676 396 — 7 Federal sources — — — — Land sale proceeds — — — — Licenses, permits, fees, and other local revenues — 12,762 — — Investment income 17,235 5,187 643 498 Other 31,406 — — — Total revenues509,026 88,612 14,391 52,873 Expenditures: Current: General government — — — — Public safety 337,214 58,793 28 — Community and economic development — — — — Health and sanitation department — — — — Service district maintenance — — — 66,606 Debt service — — — — Total expenditures337,214 58,793 28 66,606 Excess (deficiency) of revenues over (under) expenditures 171,812 29,819 14,363 (13,733) Other financing sources (uses): Transfers in — 13,427 — — Transfers out — — (13,427) — KODIAK ISLAND BOROUGH Year ended June 30, 2010 (With summarized financial information for the year ended June 30, 2009) Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) 78 Net other financing sources (uses)— 13,427 (13,427) — Change in fund balances 171,812 43,246 936 (13,733) Fund balances (deficits), at beginning of year816,546 279,077 33,194 18,108 Fund balances (deficits), at end of year$988,358 322,323 34,130 4,375 78 Child Care ServiceWomens BayBay View RoadService CoastalAssistance Area No. 1Service Area Service Area Area No. 2ManagementProgramL.E.P.C.Land Sales 327,751 135,264 11,052 — — — — — 55 17 6 — 507 24,309 22,153 4,711 — — — — 23,864 81,386 — — — — — — — — — 138,867 — 25,000 — — — — — 54,912 7,495 2,633 37 90 — — — 19,419 — — — — — — — 80 335,301 162,914 11,095 90 24,371 105,695 22,153 217,989 — — — — — — — 260,635 — — — — — — 22,331 — — — — — 24,371 — — — — — — — — 105,695 — — 297,325 166,361 12,541 — — — — — — — — — — — — — 297,325 166,361 12,541 — 24,371 105,695 22,331 260,635 37,976 (3,447) (1,446) 90 — — (178) (42,646) — — — — — — — — — — — — — — — — Federal and State Grant Programs Fire and Road Service Areas Road 79 — — — — — — — — 37,976 (3,447) (1,446) 90 — — (178) (42,646) 406,946 137,454 (6,860) 5,431 33,958 (731) (14,623) 1,180,441 444,922 134,007 (8,306) 5,521 33,958 (731) (14,801) 1,137,795 (continued) 79 Woodland AcresTrinity Islands Buildings andStreet Light Street Light GroundsService Area Service Area Revenues: Property taxes and assessments $— 10,287 4,373 Intergovernmental: State sources4,669 — — Federal sources — — — Land sale proceeds — — — Licenses, permits, fees, and other local revenues 577,200 — — Investment income 6,493 213 118 Other 121 — — Total revenues588,483 10,500 4,491 Expenditures: Current: General government 887,107 5,144 1,781 Public safety — — — Community and economic development — — — Health and sanitation department — — — Service district maintenance — — — Debt service — — — Total expenditures887,107 5,144 1,781 Excess (deficiency) of revenues over (under) expenditures (298,624) 5,356 2,710 Other financing sources (uses): Transfers in 310,000 — — Transfers out (95,000) — — KODIAK ISLAND BOROUGH Street Lighting Districts Combining Statement of Revenues, Expenditures, (With summarized financial information for the year ended June 30, 2009) Nonmajor Special Revenue Funds and Changes in Fund Balances (Deficits), (continued) Year ended June 30, 2010 80 Net other financing sources (uses)215,000 — — Change in fund balances (83,624) 5,356 2,710 Fund balances (deficits), at beginning of year311,352 7,263 4,592 Fund balances (deficits), at end of year$227,728 12,619 7,302 80 TourismMission LakeFern FullerTrinity IslandsTotals DevelopmentTide GateTrustPaving20102009 — 3,800 — 25,449 1,110,068 1,012,432 — 10 — — 61,516 20,180 — — — — 105,250 129,561 — — — — 138,867 30,561 — — — — 669,874 677,110 1,380 266 9,043 1,007 71,757 119,678 86,003 — — — 117,610 88,562 87,383 4,076 9,043 26,456 2,274,942 2,078,084 — — 8,652 — 1,163,319 872,448 — — — — 418,366 376,701 76,121 — — — 100,492 83,381 — — — — 105,695 101,048 — 1,064 — — 543,897 398,219 — — — 6,252 6,252 7,113 76,121 1,064 8,652 6,252 2,338,021 1,838,910 11,262 3,012 391 20,204 (63,079) 239,174 — — — — 323,427 259,975 — — (66,500) — (174,927) (79,475) 81 — — (66,500) — 148,500 180,500 11,262 3,012 (66,109) 20,204 85,421 419,674 78,901 13,703 583,601 (81,688) 3,806,665 3,386,991 90,163 16,715 517,492 (61,484) 3,892,086 3,806,665 81 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Fire and Road Service Areas – Fire Protection Area No. 1 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Property taxes$435,221 455,709 20,488 423,587 Intergovernmental: State sources - grants— 4,676 4,676 . Investment income— 17,235 17,235 28,412 Other 8,495 31,406 22,911 2,079 Total revenues443,716 509,026 65,310 30,491 Expenditures: Public safety: Personnel83,000 99,740 (16,740) 81,571 Volunteers15,600 14,490 1,110 18,630 Fringe benefits38,760 45,413 (6,653) 37,400 Professional services2,500 673 1,827 — Support goods and services153,856 161,564 (7,708) 150,739 Capital outlay 150,000 15,334 134,666 8,246 Total expenditures443,716 337,214 106,502 296,586 2010 Excess of revenues over expenditures $— 171,812 171,812 157,492 Fund balance, at beginning of year816,546 659,054 Fund balance, at end of year$988,358 816,546 82 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Fire and Road Service Areas – Womens Bay Fire Department Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Property taxes$68,850 70,267 1,417 68,858 Intergovernmental: State sources - grants13,016 396 (12,620) — Licenses, permits, fees, and other local revenues10,210 12,762 2,552 12,361 Investment income4,000 5,187 1,187 9,022 Total revenues96,076 88,612 (7,464) 90,241 Expenditures: Public safety: Personnel services1,000 690 310 503 Fringe benefits500 415 85 285 Support goods and services74,616 44,262 30,354 43,869 Capital outlay 32,460 13,426 19,034 15,250 Total expenditures108,576 58,793 49,783 59,907 Excess (deficiency) of revenues 2010 (y) over (under) expenditures(12,500) 29,819 42,319 30,334 Other financing sources: Transfers in: Kodiak Airport Fire District Special Revenue Fund 12,500 13,427 927 12,975 Change in fund balance$— 43,246 43,246 43,309 Fund balance, at beginning of year279,077 235,768 Fund balance, at end of year$322,323 279,077 83 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, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Property taxes$13,420 13,748 328 13,427 Investment income200 643 443 1,244 Total revenues13,620 14,391 771 14,671 Expenditures: Public safety: Support goods and services1,120 28 1,092 28 Excess of revenues over expenditures12,500 14,363 1,863 14,643 Other financing (uses): Transfers out: Womens Bay Fire Department Special Revenue Fund (12,500) (13,427) (927) (12,975) Change in fund balance$— 936 936 1,668 Fund balance, at beginning of year33,194 31,526 Fund balance, at end of year$34,130 33,194 84 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, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Property taxes$51,750 52,368 618 51,747 Intergovernmental: State sources - grants43,816 7 (43,809) — Investment income250 498 248 1,232 Total revenues95,816 52,873 (42,943) 52,979 Expenditures: Service district maintenance: Personnel services400 146 254 615 Fringe benefits200 61 139 285 Support goods and services8,400 149 8,251 119 Snow removal/sanding15,000 13,728 1,272 22,101 Road grading/ditching46,816 29,509 17,307 27,419 Repairs and maintenance25,000 23,013 1,987 2,625 Total expenditures95,816 66,606 29,210 53,164 p Deficiency of revenues (under) expenditures$— (13,733) (13,733) (185) Fund balance, at beginning of year18,108 18,293 Fund balance, at end of year$4,375 18,108 85 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Fire and Road Service Areas – Service Area No. 1 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Property taxes$291,500 327,751 36,251 292,079 Intergovernmental: State sources - grants— 55 55 — Investment income— 7,495 7,495 15,017 Total revenues291,500 335,301 43,801 307,096 Expenditures: Service district maintenance: Personnel services7,600 5,313 2,287 7,413 Fringe benefits1,950 1,459 491 — Support goods and services1,300 822 478 730 Snow removal/sanding120,000 90,822 29,178 95,809 Road grading/ditching85,650 59,187 26,463 48,981 Repairs and maintenance75,000 139,722 (64,722) 18,014 Total expenditures291,500 297,325 (5,825) 170,947 p () Excess of revenues over expenditures$— 37,976 37,976 136,149 Fund balance, at beginning of year406,946 270,797 Fund balance, at end of year$444,922 406,946 86 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, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Property taxes$125,514 135,264 9,750 105,911 Intergovernmental: State sources - grants173,405 17 (173,388) — Licenses, permits, fees, and other local revenues20,000 25,000 5,000 25,000 Investment income3,000 2,633 (367) 7,094 Total revenues321,919 162,914 (159,005) 138,005 Expenditures: Service district maintenance: Personnel services1,000 785 215 1,366 Fringe benefits500 476 24 806 Support goods and services23,000 1,723 21,277 3,761 Snow removal/sanding35,000 36,013 (1,013) 95,058 Road grading/ditching35,000 13,215 21,785 12,905 Repairs and maintenance227,419 114,149 113,270 48,295 Total expenditures321,919 166,361 155,558 162,191 Deficiency of revenues (under) expenditures $— (3,447) (3,447) (24,186) Fund balance, at beginning of year137,454 161,640 Fund balance, at end of year$134,007 137,454 87 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, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Property taxes$11,065 11,052 (13) 7,162 Intergovernmental State sources - grants— 6 6 — Investment income200 37 (163) 20 Total revenues11,265 11,095 (170) 7,182 Expenditures: Service district maintenance: Personnel services— 117 (117) 241 Fringe benefits— 59 (59) 140 Professional services5,565 — 5,565 — Support goods and services 100 23 77 12 Snow removal/sanding3,000 8,692 (5,692) 7,196 Road grading/ditching1,100 3,650 (2,550) 350 Repairs and maintenance1,500 — 1,500 3,031 Total expenditures11,265 12,541 (1,276) 10,970 Deficiency of revenues (under) expenditures$— (1,446) (1,446) (3,788) Fund (deficit), at beginning of year(6,860) (3,072) Fund(deficit)atendofyear $(8306)(6860)Fund (deficit), at end of year $(8,306) (6,860) 88 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, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Investment income$100 90 (10) 169 Expenditures Service district maintenance - Support services100 — 100 — Excess of revenues over expenditures$— 90 90 169 Fund balance, at beginning of year5,431 5,262 Fund balance, at end of year$5,521 5,431 89 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Coastal Management Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Intergovernmental: State sources – grants$— 507 507 — Federal sources – grants24,000 23,864 (136) 28,513 Total revenues24,000 24,371 371 28,513 Expenditures: Community and economic development: Planning and zoning24,000 24,371 (371) 28,324 Excess of revenues over expenditures $— — — 189 Fund balance, at beginning of year33,958 33,769 Fund balance, at end of year$33,958 33,958 90 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Child Care Assistance Program Schedule of Revenues, Expenditures, and Changes in Fund (Deficit) Budget and Actual Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Intergovernmental: State sources – grants $104,796 24,309 (80,487) — Federal sources – grants — 81,386 81,386 101,048 Total revenues104,796 105,695 899 101,048 Expenditures: Health and sanitation department: Personnel56,408 57,003 (595) 71,194 Fringe benefits26,520 29,969 (3,449) 12,863 Contingency 10,908 — 10,908 — Support goods and services10,960 18,723 (7,763) 16,991 Total expenditures104,796 105,695 (899) 101,048 Excess of revenues over expenditures$— — — — Fund(deficit)atbeginningofyear (731)(731)Fund (deficit), at beginning of year (731) (731) Fund (deficit), at end of year$(731) (731) 91 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds L.E.P.C. Schedule of Revenues, Expenditures, and Changes in Fund (Deficit) Budget and Actual Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Intergovernmental: State sources – grants $33,800 22,153 (11,647) 20,180 Expenditures: Public safety: Personnel services11,000 11,597 (597) 8,923 Fringe benefits— 6,387 (6,387) 4,059 Professional services19,300 — 19,300 (3,764) Support goods and services3,500 4,347 (847) 10,962 Total expenditures33,800 22,331 11,469 20,180 Deficiency of revenues under expenditures$— (178) (178) — Fund (deficit), at beginning of year(14,623) (14,623) Fund (deficit), at end of year $(14,801) (14,623) Fund (deficit), at end of year $(14,801) (14,623) 92 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, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Intergovernmental: State sources - grants$73,298 4,711 (68,587) — Land sale proceeds21,500 138,867 117,367 30,561 Licenses, permits, fees, and other local revenues1,000 750 (250) 1,000 Gravel sales40,000 54,162 14,162 — Investment income12,500 19,419 6,919 31,541 Other — 80 80 80 Total revenues148,298 217,989 69,691 63,182 Expenditures: General government: Personnel services98,200 96,861 1,339 11,780 Fringe benefits60,738 55,889 4,849 223 Support goods and services99,673 107,885 (8,212) 11,539 Total expenditures258,611 260,635 (2,024) 23,542 p () Excess (deficiency) of revenues over (under) expenditures $(110,313) (42,646) 67,667 39,640 Fund balance, at beginning of year1,180,441 1,140,801 Fund balance, at end of year$1,137,795 1,180,441 93 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Buildings and Grounds Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Intergovernmental: State sources - grants$— 4,669 4,669 — Rental income587,626 577,200 (10,426) 565,531 Investment income— 6,493 6,493 6,199 Other— 121 121 65 Total revenues587,626 588,483 857 571,795 Expenditures: General government: School buildings 310,000 314,295 (4,295) 336,724 School building major repairs 25,588 24,599 989 — Chiniak School 108,000 108,550 (550) — Borough building 588,137 400,432 187,705 392,570 Mental health center 10,000 3,154 6,846 20,068 Various borough buildings 10,000 1,097 8,903 — Parks operation and maintenance 42,036 34,980 7,056 12,606 Total expenditures1,093,761 887,107 206,654 761,968 p ,,,,, Excess (deficiency) of revenues over (under) expenditures(506,135) (298,624) 207,511 (190,173) Other financing sources (uses): Transfers in: General Fund 108,000 108,000 — 62,000 Facilities Special Revenue Fund 202,000 202,000 — 185,000 Transfers out: All Capital Projects(95,000) (95,000) — — Net other financing sources (uses)215,000 215,000 — 247,000 Change in fund balance$(291,135) (83,624) 207,511 56,827 Fund balance, at beginning of year 311,352 254,525 Fund balance, at end of year$227,728 311,352 94 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, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Property taxes$8,300 10,287 1,987 8,397 Investment income100 213 113 276 Total revenues8,400 10,500 2,100 8,673 Expenditures: General government: Support goods and services8,400 5,144 3,256 5,215 Excess of revenues over expenditures$— 5,356 5,356 3,458 Fund balance, at beginning of year7,263 3,805 Fund balance, at end of year$12,619 7,263 95 KODIAK ISLAND BOROUGH Nonmajor Special Revenue Funds Trinity Islands Street Light Service Area Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Property taxes$3,860 4,373 513 3,873 Investment income60 118 58 135 Total revenues3,920 4,491 571 4,008 Expenditures: General government: Support goods and services3,920 1,781 2,139 1,809 Excess of revenues over (under) expenditures$— 2,710 (1,568) 2,199 Fund balance, at beginning of year4,592 2,393 Fund balance, at end of year$7,302 4,592 96 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, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Investment income$1,000 1,380 380 1,607 Transient accommodations tax 102,000 86,003 (15,997) 86,338 Total revenues103,000 87,383 (15,617) 87,945 Expenditures: Community and economic development: Personnel services6,260 — 6,260 — Fringe benefits4,219 — 4,219 — Contributions76,066 76,066 — 55,000 Support goods and services16,455 55 16,400 57 Total expenditures103,000 76,121 26,879 55,057 Excess of revenues over expenditures$— 11,262 11,262 32,888 Fund balance, at beginning of year 78,901 46,013 udbce,beggoye 7,9 , Fund balance, at end of year$90,163 78,901 97 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, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Property taxes$3,470 3,800 330 3,675 Intergovernmental State sources - grants— 10 10 — Investment income230 266 36 363 Total revenues3,700 4,076 376 4,038 Expenditures: Service district maintenance: Personnel services1,000 805 195 574 Fringe benefits— 243 (243) 356 Professional services2,000 — 2,000 — Support goods and services700 16 684 17 Total expenditures3,700 1,064 2,636 947 Excess of revenues over expenditures$— 3,012 3,012 3,091 Fund balance, at beginning of year13,703 10,612 Fund balance, at end of year$16,715 13,703 98 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, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Investment income$5,000 9,043 4,043 15,477 Expenditures: General government: Distributions to beneficiaries8,500 8,500 — 8,500 Support goods and services150 152 (2) 164 Total expenditures8,650 8,652 (2) 8,664 Excess (deficiency) of revenues over (under) expenditures(3,650) 391 4,045 6,813 Other financing (uses): Transfers out: Hospital Facilities Enterprise Fund (66,500) (66,500) — (66,500) Change in fund balance$(70,150) (66,109) 4,041 (59,687) Fund balance, at beginning of year583,601 643,288 Fund balance, at end of year$517,492 583,601 99 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, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive2009 BudgetActual(Negative)Actual Revenues: Special assessments$17,000 25,449 8,449 33,716 Investment income200 1,007 807 1,870 Total revenues17,200 26,456 9,256 35,586 Expenditures: Debt service: Support goods and services11,118 — 11,118 164 Interest 6,082 6,252 (170) 6,949 Total expenditures17,200 6,252 10,948 7,113 Excess of revenues over expenditures $— 20,204 20,204 28,473 Fund deficit, at beginning of year(81,688) (110,161) Fund deficit, at end of year$(61,484) (81,688) 100 DEBT SERVICE FUND The Debt Service – Other Fund accounts for assets set aside to provide for the long-term portion of accrued vacation of Kodiak Island Borough employees.   101101 balance at beginning of year 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, 2010 (With financial information at June 30, 2009) 2010 Variance with Final Budget Final Positive 2009 Budget Actual (Negative)Actual Revenues: Investment income $— — — 880 Expenditures — — — — Excess of revenues over expenditures — — — 880 Other financing (uses): Transfers out: Education and Health Debt Service Fund — — — (10,000) Various Borough Capital Projects Fund — — — (160,530) Net other financing (uses)— — — (170,530) Change in fund balance $— — — (169,650) Fund balance at beginning of year —Fund , — 169 650, Fund balance, at end of year $— —                     (This page was intentionally left blank)  NONMAJOR CAPITAL PROJECT FUNDS The State Capital Grants Fund accounts for capital improvement projects relating to grants received from the State of Alaska. The Kodiak High School Renovation Fund accounts for capital improvement projects related to the Kodiak High School Renovation Project.   KODIAK ISLAND BOROUGH Nonmajor Capital Project Funds Combining Balance Sheet June 30, 2010 (With financial information at June 30, 2009) State Kodiak High Capital School Totals Assets Grants Renovation 2010 2009 Equity in central treasury $355,421 6,511 361,932 158,852 Receivables: State of Alaska 479,476 — 479,476 29,562 Federal government 83,473 — 83,473 62,034 Total $918,370 6,511 924,881 250,448 Liabilities and Fund Balances Liabilities: Accounts payable 191,790 108 191,898 26,927 Retainages payable — — — 2,531 Due to other funds 2,126 19,425 21,551 — Unearned revenues 48,000 — 48,000 — Total liabilities 241,916 19,533 261,449 29,458 Fund balances: Unreserved - Undesignated 676,454 (13,022) 663,432 220,990 Total $918,370 6,511 924,881 250,448 102102 103103 (d it)$676 454 (13 022)663 432 220 990 KODIAK ISLAND BOROUGH Nonmajor Capital Project Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficit) Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) State Kodiak High Capital School Totals Grants Renovation 2010 2009 Revenues: Intergovernmental: State sources $2,053,857 — 2,053,857 607,526 Federal sources 332,580 — 332,580 401,830 Investment income 4,841 — 4,841 12,596 Other 639 — 639 — Total revenues 2,391,917 — 2,391,917 1,021,952 Expenditures - Capital outlay: Schools — 13,022 13,022 289,085 General 2,436,453 — 2,436,453 604,786 Total expenditures 2,436,453 13,022 2,449,475 893,871 Deficiency of revenues under expenditures (44,536) (13,022) (57,558) 128,081 Other financing sources: Transfers in 500,000 — 500,000 — Change in fund balances 455,464 (13,022) 442,442 128,081 Fund balances, at beginning of year 220,990 — 220,990 92,909 FundFd bal ec t d f rbalances(deficit)at end of year $unances fi , a en o yea 676 454, (13 022), 663 432, 220 990, 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.   KODIAK ISLAND BOROUGH Municipal Solid Waste Collection and Disposal Schedule of Revenues, Expenses, and Changes in Net Assets Budget and Actual Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) 2010 Variance with Final Budget FinalPositive 2009 BudgetActual(Negative)Actual Operating revenues: Solid waste collection$2,822,200 3,226,606 404,406 2,559,903 Solid waste disposal1,038,680 1,098,668 59,988 1,044,092 Total operating revenues3,860,880 4,325,274 464,394 3,603,995 Operating expenses: Personnel services766,176 795,050 (28,874) 726,967 Solid waste collection1,605,000 1,640,179 (35,179) 1,534,673 Refuse disposal300,000 358,408 (58,408) 276,878 Contracted services252,000 275,876 (23,876) 187,969 Maintenance and repairs75,500 90,793 (15,293) 34,483 Landfill closure and postclosure costs240,000 367,263 (127,263) 348,634 Depreciation 364,326 270,488 93,838 270,153 General and administration 267,150 204,366 62,784 227,757 Recycling services 130,000 267,518 (137,518) 233,768 Contributions 13,500 13,207 293 10,876 Enterprise Funds 104 Contributions 13,500 13,207 293 10,876 Total operating expenses4,013,652 4,283,148 (269,496) 3,852,158 Operating income (loss)(152,772) 42,126 194,898 (248,163) Other income : State of Alaska on-behalf payment — 25,095 25,095 — Investment income 70,000 124,478 54,478 178,651 Income (loss) before transfers (82,772) 191,699 274,471 (69,512) Other financing sources: Transfers in 13,500 13,500 (13,500) 6,450 Income (loss) before extraordinary item (69,272) 205,199 260,971 (63,062) Extraordinary item — — — 336,458 Change in net assets$(69,272) 205,199 274,471 273,396 Net assets, at beginning of year4,628,072 4,354,676 Net assets, at end of year$4,833,271 4,628,072 104 KODIAK ISLAND BOROUGH Hospital Facilities Schedule of Revenues, Expenses, and Changes in Net Assets Budget and Actual Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) Variance with Final Budget FinalPositive 2009 BudgetActual(Negative)Actual Operating revenues: Lease income$720,000 720,000 — 720,000 Operating expenses: Personnel services5,000 5,000 — 5,386 Maintenance and repairs5,000 — 5,000 — Depreciation1,276,560 872,858 403,702 929,555 General and administration14,500 45 14,455 842 Total operating expenses1,301,060 877,903 423,157 935,783 Operating income (loss)(581,060) (157,903) 423,157 (215,783) Other income (expense): Contribution to Providence Hospital(108,000) (108,000) — (108,000) State of Alaska on-behalf payment — 228 228 — CHC reimbursements— 1,147,762 1,147,762 2,855,835 Enterprise Funds 2010 105 ,,,,,, Investment income2,500 16,702 14,202 10,413 Interest expense(49,120) (49,117) 3 (51,752) Income (loss) before transfers(735,680) 849,672 1,585,352 2,490,713 Other financing sources (uses): Transfers in66,500 66,500 — 759,040 Change in net assets$(669,180) 916,172 1,585,352 3,249,753 Net assets, at beginning of year20,223,741 16,973,988 Net assets, at end of year$21,139,913 20,223,741 105 KODIAK ISLAND BOROUGH Kodiak Fisheries Research Center Schedule of Revenues, Expenses, and Changes in Net Assets Budget and Actual Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) Variance with Final Budget FinalPositive 2009 BudgetActual(Negative)Actual Operating revenues: Lease income$1,597,030 1,602,685 5,655 1,598,260 Other — — — 50 Total operating revenues1,597,030 1,602,685 5,655 1,598,310 Operating expenses: Personnel services329,165 338,361 (9,196) 298,613 Depreciation 744,420 631,123 113,297 713,144 General and administration: Cleaning and janitorial50,300 50,573 (273) 50,131 Heating 205,000 174,655 30,345 189,642 Electrical209,000 156,709 52,291 171,266 Plumbing124,500 106,735 17,765 64,603 Air conditioning10,500 36 10,464 1,267 Elevators2,500 1,223 1,277 2,797 Enterprise Funds 2010 106 Miscellaneous156,400 117,378 39,022 91,641 Total operating expenses1,831,785 1,576,793 254,992 1,583,104 Operating income (loss)(234,755) 25,892 260,647 15,206 Other income (expense): State of Alaska on-behalf payment — 8,090 8,090 — Investment income 10,000 56,887 46,887 84,871 Interest expense(350,787) (350,787) — (377,300) Income (loss) before extraordinary item (575,542) (259,918) 315,624 (277,223) Extraordinary item — — — 96,230 Change in net assets $(575,542) (259,918) 315,624 (180,993) Net assets, at beginning of year10,344,226 10,525,219 Net assets, at end of year$10,084,308 10,344,226 106 KODIAK ISLAND BOROUGH Enterprise Funds Schedule of Revenues, Expenses, and Changes in Net Assets (Deficit) Budget and Actual Year ended June 30, 2010 (With financial information for the year ended June 30, 2009) Variance with Final Budget FinalPositive 2009 BudgetActual(Negative)Actual Operating revenues: Customer charges$69,000 42,474 (26,526) 52,654 Operating expenses: Personnel services28,800 3,000 25,800 3,000 Miscellaneous200 395 (195) 422 Telephone services41,320 39,079 2,241 39,621 Total operating expenses70,320 42,474 27,846 43,043 Operating income (loss)(1,320) — 1,320 9,611 Other income: Investment income1,320 — (1,320) 38 Change in net assets$— — — 9,649 2010 911 Services Fund 107 Net assets (deficit), at beginning of year— (9,649) Net assets, at end of year$— — 107 SUPPLEMENTARY SCHEDULES   Annual principal and interest requirements on General Obligation Refunding and Construction Bonds. Year PrincipalInterest Total 20112,745,000 1,286,510 4,031,510 20122,500,000 1,168,195 3,668,195 20132,595,000 1,066,407 3,661,407 20142,710,000 960,432 3,670,432 20151,315,000 848,432 2,163,432 20161,370,000 792,082 2,162,082 20171,425,000 732,912 2,157,912 20181,485,000 674,198 2,159,198 20191,550,000 611,218 2,161,218 20201,620,000 543,323 2,163,323 20211,685,000 470,899 2,155,899 20221,760,000 395,475 2,155,475 20231,845,000 313,442 2,158,442 20241,930,000 224,255 2,154,255 20251,330,000 218,360 1,548,360 2026540,000 84,460 624,460 2027565,000 58,000 623,000 SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY KODIAK ISLAND BOROUGH June 30, 2010 2028595,000 29,750 624,750 29,565,000$ 10,478,350$ 40,043,350$ 108 Interest PrincipalInterest FiscalInterest dueduedue year rate August 01February 01February 01Total 20115.00%4,500 180,000 4,500 189,000 4,500$ 180,000$ 4,500$ 189,000$ KODIAK ISLAND BOROUGH GENERAL OBLIGATION BOND, 2000 SERIES E RETIREMENT SCHEDULE June 30, 2010 2000 E BOND ISSUE This issue, dated December 12, 2000, was issued under a book entry system registered in the name of Cede & Company, as Nominee of the Depository Trust Company, New York, New York, the securities depository for the 2000 Series E Bond. This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council, Wohlforth, Vassar, Johnson & Brecht of Anchorage, Alaska. This bond was issued to repair the high school roof. 109 Interest PrincipalInterest FiscalInterest dueduedue year rate August 01February 01February 01Total 20117.15%5,720 160,000 5,720 171,440 5,720$ 160,000$ 5,720$ 171,440$ KODIAK ISLAND BOROUGH GENERAL OBLIGATION BOND, 2000 SERIES F RETIREMENT SCHEDULE June 30, 2010 1998BondIssue2000 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. 110 Fiscal year Interest rate Interest due July 01 Principal due July 01 Interest due January 01 Total 20114.250%155,817 385,000 155,817 696,634 20124.000%147,636 400,000 147,636 695,272 20134.000%139,136 415,000 139,136 693,272 20144.000%130,836 435,000 130,836 696,672 20154.100%122,136 450,000 122,136 694,272 20164.250%113,136 470,000 113,136 696,272 20174.300%103,501 485,000 103,501 692,002 20184.400%93,194 510,000 93,194 696,388 20194.500%82,229 530,000 82,229 694,458 20204.500%70,569 555,000 70,569 696,138 20214.625%58,082 580,000 58,082 696,164 KODIAK ISLAND BOROUGH RETIREMENT SCHEDULE GENERAL OBLIGATION BOND, 2004 SERIES C June 30, 2010 1998BondIssue2004 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 20224.750%45,032 605,000 45,032 695,064 20234.800%31,041 635,000 31,041 697,082 20244.800%15,960 665,000 15,960 696,920 1,308,305$ 7,120,000$ 1,308,305$ 9,736,610$ 1998BondIssue2004 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 111 Fiscal year Interest rate Interest due November 01 Principal due November 01 Interest due May 01 Total 20113.50%197,913 460,000 189,863 847,776 20123.50%189,863 475,000 181,550 846,413 20133.50%181,550 490,000 172,975 844,525 20144.00%172,975 510,000 162,775 845,750 20154.00%162,775 530,000 152,175 844,950 20164.00%152,175 550,000 141,175 843,350 20174.00%141,175 570,000 129,775 840,950 20184.00%129,775 595,000 117,875 842,650 20194.50%117,875 620,000 103,925 841,800 20204.50%103,925 650,000 89,300 843,225 20214.50%89,300 675,000 74,113 838,413 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 B 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. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BOND, 2004 SERIES D RETIREMENT SCHEDULE June 30, 2010 1998BondIssue2004 B BOND ISSUE 20224.50%74,113 705,000 58,250 837,363 20235.00%58,250 740,000 39,750 838,000 20245.00%39,750 775,000 20,375 835,125 20255.00%109,180 815,000 - 924,180 1,920,594$ 9,160,000$ 1,633,876$ 12,714,470$ 1998BondIssue2004 B BOND ISSUE 112 Fiscal year Interest rate Interest due October 01 Principal due April 01 Interest due April 01 Total 2011 5.00%174,230 275,000 174,230 623,460 2012 5.00%167,355 290,000 167,355 624,710 2013 5.00%160,105 300,000 160,105 620,210 2014 5.00%152,605 320,000 152,605 625,210 2015 5.00%144,605 335,000 144,605 624,210 2016 5.00%136,230 350,000 136,230 622,460 2017 4.00%127,480 370,000 127,480 624,960 2018 4.00%120,080 380,000 120,080 620,160 2019 4.00%112,480 400,000 112,480 624,960 2020 425%104480 415000 104480 623960 KODIAK ISLAND BOROUGH GENERAL OBLIGATION BOND, 2008 SERIES A 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. June 30, 2010 RETIREMENT SCHEDULE 1998BondIssue2008 ABOND ISSUE 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 54,590624,180 2026 4.90%42,230 540,000 42,230624,460 2027 5.00%29,000 565,000 29,000623,000 2028 5.00%14,875 595,000 14,875624,750 1,865,315$ 7,490,000$ 1,865,315$ 11,220,630$ 1998BondIssue2008 ABOND ISSUE 113 Fiscal year Interest rate Interest due August 1 Principal due February 1 Interest due February 1 Total 20112.09%109,100 1,285,000109,100 1,503,200 20122.54%83,400 1,335,00083,400 1,501,800 20133.08%56,700 1,390,00056,700 1,503,400 20143.54%28,900 1,445,00028,900 1,502,800 278,100$ 5,455,000$ 278,100$ 6,011,200$ KODIAK ISLAND BOROUGH GENERAL OBLIGATION BOND, 2009 SERIES A RETIREMENT SCHEDULE June 30, 2010 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, Bittner and Cherot of Anchorage, Alaska. This bond was issued to refund the 1998 Series A Bond issue. 1998BondIssue2009 BOND ISSUE 114                     (This page was intentionally left blank)  STATISTICAL SECTION   115 STATISTICAL SECTION This part of the Kodiak Island Borough’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the governments’s overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. 116-120 Revenue Capacity These schedules contain information to help the reader assess the govern- ment’s most significant local revenue source, the property tax. 121-124 Debt Capacity These schedules present information to help the reader assess the afforda- bility of the government’s current levels of outstanding debt and the gov- ernment’s ability to issue additional debt in the future. 125-129 Demographic and Economic Information These schedules offer demographic and economc indicators to help the reader understand the environment within which the government’s finan- cial activities take place. 130-136 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the revelant year.                     (This page was intentionally left blank)  KO D I A K I S L A N D B O R O U G H Ne t A s s e t s b y C o m p o n e n t La s t S i x F i s c a l Y e a r s (a c c r u a l b a s i s o f a c c o u n t i n g ) 20 0 5 20 0 6 20 0 7 20 0 8 20092010 Go v e r n m e n t a l a c t i v i t i e s : In v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t $ 6 1 , 1 5 4 , 2 0 4 $ 6 2 , 7 1 6 , 3 2 6 $ 7 3 , 4 2 5 , 3 9 4 $ 2 5 , 1 2 7 , 7 7 9 $ 7 1 , 5 3 4 , 7 6 6 $ 7 7 , 4 4 7 , 0 4 5 Un r e s t r i c t e d 4 5 , 0 5 2 , 1 9 7 4 5 , 6 5 3 , 3 5 7 3 7 , 6 4 0 , 7 1 6 8 9 , 8 5 3 , 7 9 4 4 8 , 1 4 0 , 4 0 6 4 8 , 9 9 2 , 9 0 2 To t a l g o v e r n m e n t a l a c t i v i t i e s n e t a s s e t s $ 1 0 6 , 2 0 6 , 4 0 1 $ 1 0 8 , 3 6 9 , 6 8 3 $ 1 1 1 , 0 6 6 , 1 1 0 $ 1 1 4 , 9 8 1 , 5 7 3 $ 1 1 9 , 6 7 5 , 1 7 2 $ 1 2 6 , 4 3 9 , 9 4 7 Bu s i n e s s - t y p e a c t i v i t i e s : In v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t $ 3 9 , 8 7 8 , 7 8 5 $ 3 8 , 5 8 8 , 5 1 0 $ 3 8 , 6 2 3 , 7 6 2 $ 3 4 , 7 0 6 , 5 9 7 $ 3 8 , 1 3 5 , 3 4 0 $ 3 6 , 6 5 5 , 8 5 9 Un r e s t r i c t e d ( 7 , 2 6 3 , 9 5 0 ) ( 6 , 1 3 3 , 8 5 3 ) ( 5 , 5 0 3 , 3 6 2 ) ( 2 , 8 6 2 , 3 6 3 ) ( 2 , 9 3 9 , 3 0 1 ) ( 5 9 8 , 3 6 7 ) To t a l b u s i n e s s - t y p e a c t i v i t i e s n e t a s s e t s $ 3 2 , 6 1 4 , 8 3 5 $ 3 2 , 4 5 4 , 6 5 7 $ 3 3 , 1 2 0 , 4 0 0 $ 3 1 , 8 4 4 , 2 3 4 $ 3 5 , 1 9 6 , 0 3 9 $ 3 6 , 0 5 7 , 4 9 2 Pr i m a r y g o v e r n m e n t : In v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t $ 1 0 1 , 0 3 2 , 9 8 9 $ 1 0 1 , 3 0 4 , 8 3 6 $ 1 1 2 , 0 4 9 , 1 5 6 $ 5 9 , 8 3 4 , 3 7 6 $ 1 0 9 , 6 7 0 , 1 0 6 $ 1 1 4 , 1 0 2 , 9 0 4 Un r e s t r i c t e d 3 7 , 7 8 8 , 2 4 7 3 9 , 5 1 9 , 5 0 4 3 2 , 1 3 7 , 3 5 4 8 6 , 9 9 1 , 4 3 1 4 5 , 2 0 1 , 1 0 5 4 8 , 3 9 4 , 5 3 5 To t a l p r i m a r y g o v e r n m e n t n e t a s s e t s $ 1 3 8 , 8 2 1 , 2 3 6 $ 1 4 0 , 8 2 4 , 3 4 0 $ 1 4 4 , 1 8 6 , 5 1 0 $ 1 4 6 , 8 2 5 , 8 0 7 $ 1 5 4 , 8 7 1 , 2 1 1 $ 1 6 2 , 4 9 7 , 4 3 9 So u r c e : B o r o u g h g e n e r a l l e d g e r Th e K o d i a k I s l a n d B o r o u g h i m p l e m e n t e d G A S B 3 4 i n F i s c a l Y e a r 2 0 0 5 . T h a t i s w h y t h e r e i s o n l y 6 y e a r s o f d a t a Fi s c a l Y e a r 11 6 11 6 KODIAK ISLAND BOROUGH Changes in Net Assets Last Six Fiscal Years (accrual basis of accounting) 2005 2006 2007 2008 2009 2010 Expenses Governmental activities: General government$7,133,461 $3,984,390 $4,755,754 $4,226,759 $3,723,964 $4,479,415 Public safety- - - 509,697 579,710 612,763 Emergency preparedness25,850 8,598 10,384 13,841 14,988 10,511 Community and economic development509,680 784,002 786,614 1,105,156 908,501 1,034,686 Health and sanitation387,619 403,866 414,144 449,792 371,673 406,087 Education, culture, and recreation185,993 164,053 161,247 183,747 248,571 192,182 Service district maintenance347,934 336,385 362,189 378,661 398,219 543,897 Education, culture, and recreation10,207,757 10,831,588 10,788,188 11,524,160 12,354,129 12,423,691 Interest on long-term debt1,101,598 1,700,089 1,290,216 1,270,423 1,408,045 1,336,068 Total governmental activities expenses19,899,892 18,212,971 18,568,736 19,662,236 20,007,800 21,039,300 Business-type activities: Municipal solid waste collection and disposal3,362,348 3,446,453 2,888,821 4,628,826 3,852,158 4,283,148 Hospital facilities1,344,987 1,304,583 1,297,419 1,124,650 1,095,535 1,035,020 Kodiak fisheries research center1,878,788 1,856,875 1,889,750 2,027,432 1,960,404 1,927,580 911 services69,178 57,194 64,140 107,980 43,043 42,474 Total business-type activities expenses6,655,301 6,665,105 6,140,130 7,888,888 6,951,140 7,288,222 Total primary government expenses$26,555,193 $24,878,076 $24,708,866 $27,551,124 $26,958,940 $28,327,522 Program Revenues Governmental activities: Charges for services: General government$367,530 $311,802 $1,058,330 $436,284 $705,166 $703,431 Public safety- - - - 12,361 12,762 Community and economic development21,886 - 68,867 148,682 - - Health and sanitation- - - 7,370 - - Education, culture, and recreation56,704 108,218 - - - - Service district maintenance20,000 20,000 20,015 28,345 25,000 25,000 Primary and secondary education- 95,025 - - - - Operating grants and contributions721,453 1,240,547 1,935,687 1,911,246 2,543,254 2,306,394 Capital grants2,917,160 298,852 184,922 1,926,465 2,331,253 6,518,798 Total governmental activities program revenues4,104,733 2,074,444 3,267,821 4,458,392 5,617,034 9,566,385 Business-type activities: Charges for services: Municipal solid waste collection and disposal3,141,856 3,665,289 3,932,985 3,911,771 3,603,995 4,350,369 Hospital facilities1,153,333 1,153,333 1,081,110 720,000 3,575,835 1,867,990 Kodiak fisheries research center1,566,686 1,572,474 1,581,850 1,614,532 1,598,260 1,610,775 911 services26,721 65,614 62,698 54,925 52,654 42,474 Total business-type activities program revenues 5,888,596 6,456,710 6,658,643 6,301,228 8,830,744 7,871,608 Fiscal Year 117 yppg ,,,,,,,,,,,, Total primary government program revenues$9,993,329 $8,531,154 $9,926,464 $10,759,620 $14,447,778 $17,437,993 Net(expense)/revenue Governmental activities$(15,795,159) $(16,138,527) $(15,300,915) $(15,203,844) $(14,390,766) $(11,472,915) Business-type activities(766,705) (208,395) 518,513 (1,587,660) 1,879,604 583,386 Total primary government net expense$(16,561,864) $(16,346,922) $(14,782,402) $(16,791,504) $(12,511,162) $(10,889,529) General Revenues and Other Changes in Net Assets Governmental activities: Taxes: Property taxes$9,063,729 $9,807,551 $9,754,916 $10,118,602 $10,592,258 $11,051,740 Severance taxes1,005,539 1,186,908 1,316,689 1,436,210 1,311,188 1,336,075 Unrestricted grants and contributions2,384,538 3,482,351 3,242,740 3,144,750 4,214,617 4,089,966 Land sales- - - - 26,369 760 Investment earnings1,750,321 2,798,391 3,745,990 3,912,145 2,082,615 1,219,201 Other55,692 779,328 (225,636) 380,550 226,586 619,948 Transfers170,602 247,280 162,643 127,050 (765,490) (80,000) Extraordinary item- - - - 1,396,222 - Total governmental activities$14,430,421 $18,301,809 $17,997,342 $19,119,307 $19,084,365 $18,237,690 Business-type activities: Investment earnings70,812 161,892 274,126 434,164 273,973 198,067 Other- 391,895 35,747 4,380 50 - Transfers(170,602) (247,280) (162,643) (127,050) 765,490 80,000 Extraordinary item- - - - 432,688 - Total business-type activities(99,790) 306,507 147,230 311,494 1,472,201 278,067 Total primary government$14,330,631 $18,608,316 $18,144,572 $19,430,801 $20,556,566 $18,515,757 Change in Net Assets Governmental activities$(1,364,738) $2,163,282 $2,696,427 $3,915,463 $4,693,599 $6,764,775 Business-type activities(866,495) 98,112 665,743 (1,276,166) 3,351,805 861,453 Total primary government$(2,231,233) $2,261,394 $3,362,170 $2,639,297 $8,045,404 $7,626,228 The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 6 years of data. 117 KODIAK ISLAND BOROUGH Fund Balances of Governmental Funds Last Six Fiscal Years (modified accrual basis of accounting) 2005 2006 2007 2008 2009 2010 General fund Reserved$- $- $- $- $- $15,703 Unreserved1,813,013 2,026,113 2,793,313 3,230,479 3,124,289 2,366,973 Total general fund$1,813,013 $2,026,113 $2,793,313 $3,230,479 $3,124,289 $2,382,676 All other governmental funds Reserved$8,090,822 $7,742,903 $7,367,644 $6,969,951 $6,206,906 $5,726,303 Unreserved, reported in: Special revenue funds34,055,115 36,837,895 35,316,321 36,286,898 37,292,771 37,530,982 Debt service funds(189,824) 76,898 101,090 159,788 5,938 22,255 Capital projects funds21,412,256 20,810,819 21,711,585 25,805,778 12,516,511 8,403,174 Total all other governmental funds$63,368,369 $65,468,515 $64,496,640 $69,222,415 $56,022,126 $51,682,714 The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 6 years of data. Fiscal Year 118118 KODIAK ISLAND BOROUGH Changes in Fund Balances of Governmental Funds Last Seven Fiscal Years (modified accrual basis of accounting) Fiscal Year 2004200520062007200820092010 Revenues Taxes$8,016,323$9,063,729$9,833,846$9,750,682 10,254,47710,565,68510,993,175 Intergovernmental: State sources2,121,420 2,169,8033,368,491 4,012,6474,428,472 5,966,80810,610,231 Federal sources1,245,3373,853,3481,766,9261,417,4032,553,9903,122,3162,338,468 Land sale proceeds9,206 22,738177,16447,087 19,45830,561138,867 Severance taxes799,6931,005,5391,186,9081,316,6891,436,2101,311,1881,336,075 Licenses, permits, fees, and other local revenues764,913692,540820,286690,962658,381742,527741,193 Other revenues222,83775,841 125,040633,925353,850418,741570,415 Investment earnings866,1431,772,8932,803,4663,751,6093,918,0082,088,9151,225,938 Total revenues14,045,87218,656,43120,082,12721,621,00423,622,84624,246,74127,954,362 Expenditures General government2,118,1662,713,633 3,950,9274,504,0523,818,5444,067,0244,600,601 Public safety864,703425,506— — 385,529460,826502,491 Emergency preparedness48,755 23,5216,0987,884 5,71312,4888,011 Community and economic development536,111509,680784,002786,614923,203908,5011,034,686 Health and sanitation department331,884329,738363,520373,132387,053333,747371,321 Education, culture, and recreation217,759185,993161,633 158,161183,747248,571192,182 Maintenance and operations567,094698,119— — — — — Service district maintenance 425,712347,934336,385498,539374,320398,219543,897 Primary and secondary education7,721,706 7,973,0358,430,840 8,387,4409,123,412 9,956,6189,980,350 Fern Fuller trust24,50022,547— — — — — Capital outlay: Schools131,32468,109464,1421,436,6397,029,62814,857,0647,359,932 General656,4232,972,174332,398 373,038887,1891,277,1064,319,438 Debt service: Principal1,260,1671,784,8591,814,5532,100,3612,205,441 2,495,0562,685,606 Interest 644,046984,7661,584,763 1,336,3491,263,176 1,578,4081,356,872 Other charges-bond issuance costs— 43,661— — — 68,635— Total expenditures15,548,35019,083,275 18,229,26119,962,20926,586,95536,662,26332,955,387 Excess of revenues over (under) expenditures(1,502,478)(426,844)1,852,8661,658,795(2,964,109)(12,415,522)(5,001,025) 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 in3,605,614 1,800,2121,751,182 2,626,8532,966,610 6,144,3013,211,195 Transfers out(1,961,054)(1,629,610)(1,503,902)(2,464,210)(2,839,560)(6,909,791)(3,291,195) Tlhfii()1644560 20642192 247280 162643 8127050 (890957)(80000)Total other financing sources(uses)1,644,56020,642,192247,280162,6438,127,050 (890,957)(80,000) Net change in fund balances$142,082$20,215,348$2,100,146$1,821,4385,162,941(13,306,479)(5,081,025) Debt service as a percentage of noncapitalN/A 21.26%24.22%23.35 %22.82%25.28%23.46% expenditures The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 7 years of data. 119 KODIAK ISLAND BOROUGH General Revenues by Source(a) Last Ten Fiscal Years Licenses,Inter- FiscalPermitsGovernmentalInvestmentOperatingMiscellaneous YearTaxesand FeesRevenueIncomeTransfersRevenueTotal 20018,135,184 95,129 2,135,483 583,633 18,154 44,945 11,012,528 20028,017,344 95,857 3,397,240 294,675 200,000 140,901 12,146,017 20038,028,513 153,727 2,683,460 171,532 1,000,000 — 12,037,232 20048,165,326 187,898 2,010,431 105,812 850,000 — 11,319,467 20059,378,816 161,621 1,925,405 265,392 — — 11,731,234 200610,257,023 171,962 2,369,185 469,913 — — 13,268,083 200710,218,016 78,720 3,325,899 399,149 — 82,604 14,104,388 200810,792,741 100,256 3,276,741 544,926 — — 14,714,664 200910,864,441 65,417 4,461,624 292,825 — 131,944 15,816,251 201011,219,182 71,319 4,123,507 178,567 — 38,352 15,630,927 (a) Includes general fund only. Source: Borough general ledger. 120120 KODIAK ISLAND BOROUGH Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Ratio of Total Total Assessed to Real PropertyPersonal PropertyTotalDirectTotal Year EndedAssessedFull ValueAssessedFull ValueAssessedFull ValueTaxFull Value June 30,ValueDeterminationValueDeterminationValueDeterminationRateDetermination 2001626,906,341 641,419,200 121,849,192 336,548,600 748,755,533 977,967,800 1.00     76.56 2002635,931,458 654,299,600 116,117,602 323,479,600 752,049,060 977,779,200 10.04   76.91 2003642,995,612 679,949,700 117,456,245 323,755,200 760,451,857 1,003,704,900 10.07   75.76 2004660,040,861 687,078,300 110,941,506 307,988,900 770,982,367 995,067,200 10.00   77.48 2005678,425,914 731,267,000 105,481,537 300,735,600 783,907,451 1,032,002,600 11.03   75.96 2006692,572,845 786,373,800 106,206,504 309,114,600 798,779,349 1,095,488,400 12.04   72.92 2007710,848,299 836,778,900 94,833,515 297,380,200 805,681,814 1,134,159,100 11.47   71.04 2008734,527,929 941,403,800 100,997,608 298,543,700 835,525,537 1,239,947,500 11.68   67.38 2009765,152,958 817,641,308 105,320,027 233,623,664 870,472,985 1,051,264,972 11.22   82.80 2010805,000,744 N/A108,014,241 N/A913,014,985 N/AN/A N/A Sources: Borough assessment and tax records 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. Fiscal $400,000,000 $600,000,000 $800,000,000 $1,000,000,000 Last Ten  Years  Assessed Values 121 $0 $200,000,000 $400,000,000 $600,000,000 $800,000,000 $1,000,000,000 2001200220032004200520062007200820092010 Last Ten  Years  Assessed Values 121 KODIAK ISLAND BOROUGH Direct and Overlapping Property Tax Rates and Contributions to the School District (per $1000 of Assessed Value) Last Ten Fiscal Years Direct Rate Overlapping Rates Woodland²Trinity²Mission² FiscalAcresIslandsLake YearBorough City¹StreetStreetTide Road Services Areas²Fire Areas² EndedBasicofLightingLightingGateMonashkaServiceBay ViewWomensServiceWomens June 30, RateKodiakAreaAreaAreaBayDistrict 1RoadBayArea No. 1BayAirport 20019.25 2.00 — — — 1.50 1.00 1.00 2.00 1.50 1.25 — 20029.25 2.00 — — — 1.50 1.25 1.00 2.00 1.50 1.25 — 20039.25 2.00 — — — 1.50 1.00 1.00 2.00 1.50 1.25 — 20049.25 2.00 — 0.50 1.00 1.50 1.00 1.00 2.00 1.50 1.25 — 200510.25 2.00 — 0.50 1.00 1.50 1.00 1.00 2.00 1.50 1.25 1.25 200611.00 2.00 — 0.50 1.00 2.50 1.25 1.00 2.00 1.50 1.25 1.25 200710.50 2.00 — 0.50 1.00 2.50 1.25 1.00 2.00 1.50 1.25 1.25 200810.50 2.00 — 0.50 1.00 2.50 1.25 1.00 2.00 1.50 1.25 1.25 200910.50 2.00 0.25 0.50 1.00 2.50 1.50 1.00 2.00 1.50 1.25 1.25 201010.50 2.00 0.25 0.50 1.00 2.50 1.50 1.00 2.00 1.50 1.25 1.25 Contributions to the School District FiscalAssessedAmount ofMillage YearValueContributionEquivalent 2001748,755,533 6,650,336 8.88 2002752,049,060 7,106,289 9.45 2003760,451,857 7,581,994 9.97 2004770,982,367 8,021,997 10.40 2005783,907,451 8,324,045 10.62 2006783,907,451 8,644,763 11.03 2007798,779,349 8,730,014 10.93 2008835,525,537 8,951,157 10.71 2009870,472,985 10,243,618 11.77 2010913,014,985 10,290,350 11.27 Source: Borough ordinance and assessment Note: The maximum mill rate allowed by State code is 30 mills ¹Overlapping rates are those of local governments that apply to property owners within the City of Kodiak. ²Overlapping 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. 122122 KODIAK ISLAND BOROUGH Principal Property Tax Payers Current Year and Ten Years Ago PercentagePercentage Taxableof Total BoroughTaxableof Total Borough AssessedAssessedAssessedAssessed TaxpayerValueRankValueValueRankValue Ocean Beauty Seafoods Inc$15,963,774 1 1.7% $10,270,641 61.4% Westward Seafoods, Inc11,430,705 2 1.3% Alaska Communications Systems (b)11,053,885 3 1.2% 11,728,531 41.6% International Seafoods of AK10,028,365 4 1.1% 16,796,047 12.3% Wal-Mart Real Est Bus Trust9,926,522 5 1.1% 5,486,700 100.8% Trident Seafoods Corp8,865,179 6 1.0% 11,747,515 31.6% Mill Bay Plaza Assoc LTD8,648,400 7 0.9% Brechan Enterprises Inc8,331,857 8 0.9% Horizon Lines of Alaska LLC(a)6,823,954 9 0.7% 9,059,15971.3% Afognak Native Corp5,973,346 10 0.7% Alaska Pacific Seafoods 11,121,99151.6% Kodiak Fishmeal Co 8,898,859 91.2% Safeway/MBPA 9,034,762 81.3% Western Alaska Fisheries 13,548,984 21.9% Total$97,045,987 10.6% $107,693,189 12.1% Source: Borough tax records. (a) In 2000 company name was CSX Lines LLC (b) In 2000 company name was T.U. of the Northland. (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. 20102000 123123 KODIAK ISLAND BOROUGH Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year Ended in Subsequent June 30,Years 20018,164,127 7,912,859 96.9 204,458 8,117,317 99.4 20028,411,173 8,313,881 98.8 362,377 8,676,258 103.2 20038,395,117 8,167,437 97.3 178,885 8,346,322 99.4 20048,462,404 8,125,629 96.0 69,831 8,195,460 96.8 20058,785,412 8,139,198 92.6 521,516 8,660,714 98.6 200610,166,967 9,901,965 97.4 292,820 10,194,785 100.3 20079,957,089 9,797,780 98.4 96,675 9,894,455 99.4 200810,342,728 10,257,340 99.2 33,122 10,290,462 99.5 200910,196,998 10,013,911 98.2 66,246 10,080,157 98.9 201010,643,112 10,498,662 98.6 — 10,498,662 98.6 Source: Borough general ledger. Collected within the Fiscal Year of the LevyTotal Collections to DateTaxes Levied for the Fiscal Year Collections Percentage of LevyAmountAmountof Levy Percentage 124124 Less DebtNet GeneralNet General Fiscal ServiceBonded YearPopulationFundDebt 200113,913 (a)748,755,533 17,690,000 344,942 17,345,058 1,247 2.32% 200213,565 (a)752,049,060 16,615,000 448,065 16,166,935 1,192 2.15% 200313,643 (a)760,451,857 15,620,000 17,879 15,602,121 1,144 2.05% 200413,817 (a)770,982,367 14,385,000 33,915 14,351,085 1,039 1.86% 200513,573 (b)783,907,451 32,965,000 (348,233) 33,313,233 2,454 4.25% 200613,693 (c)783,907,451 31,155,000 (81,511) 31,236,511 2,281 3.98% 200713,457 (a)805,681,814 29,060,000 (60,380) 29,120,380 2,164 3.61% 200813,664 (a)835,525,537 34,860,000 (9,862) 34,869,862 2,552 4.17% 200913,954 (a)870,472,985 32,245,000 5,938 32,239,062 2,310 3.70% 201013,860 (a)913,014,985 29,565,000 22,255 29,542,745 2,132 3.24% 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. ValueBonded DebtCapitaAssessed Value KODIAK ISLAND BOROUGH Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years AssessedGrossPerDebt Per 125125 KODIAK ISLAND BOROUGH Computation of Direct and Overlapping Debt June 30, 2010 PercentageKodiak Island Net DebtApplicable to thisBorough OutstandingGovernmentalShare of (a)Unit (b)Debt (c) Kodiak Island Borough: General obligation bonds$29,565,000 100% $29,565,000 City of Kodiak: General obligation bonds7,720,000 100% 7,720,000 Total$37,285,000 $37,285,000 (a)Gross debt outstanding less applicable amounts in the Debt Service Funds. (b)Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to valuation of property subject to taxation in reporting unit. (c)Per Alaska Statute 29.45.090 there is a limit of 30 mills for ad valorem taxes. Per Alaska Statute 29.45.100 the limitation on maximum mill rate does not apply to taxes levied to pay bonds. Sources: Borough general ledger and City of Kodiak records. 126126 20 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 As s e s s e d v a l u e $ 7 8 3 , 9 0 7 , 4 5 1 7 8 3 , 9 0 7 , 4 5 1 8 0 5 , 6 8 1 , 8 1 4 8 3 5 , 5 2 5 , 5 3 7 8 7 0 , 4 7 2 , 9 8 5 9 1 3 , 0 1 4 , 9 8 5 Pl u s e x e m p t p r o p e r t y 3 2 , 4 9 1 , 8 4 0 4 5 , 7 8 3 , 4 9 0 4 9 , 5 3 9 , 0 0 0 5 0 , 1 9 4 , 1 7 0 4 5 , 1 8 8 , 0 5 0 5 0 , 4 5 2 , 1 2 0 To t a l $ 8 1 6 , 3 9 9 , 2 9 1 8 2 9 , 6 9 0 , 9 4 1 8 5 5 , 2 2 0 , 8 1 4 8 8 5 , 7 1 9 , 7 0 7 9 1 5 , 6 6 1 , 0 3 5 9 6 3 , 4 6 7 , 1 0 5 Th e S t a t e o f A l a s k a d o e s n o t m a n d a t e a d e b t l i m i t t o i t s m u n i c i p a l i t i e s a n d p o l i t i c a l s u b d i v i s i o n s . De b t c a p a c i t y i s u l t i m a t e l y d e t e r m i n e d b y t h e v o t e r s a n d t h e m a r k e t p l a c e . So u r c e : B o r o u g h a s s e s s m e n t r e c o r d s ( c e r t i f i e d t a x r o l l s ) . KO D I A K I S L A N D B O R O U G H Le g a l D e b t M a r g i n I n f o r m a t i o n La s t S i x F i s c a l Y e a r s 12 7 12 7 KODIAK ISLAND BOROUGH Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures and Transfers Last Ten Fiscal Years Total generalRatio of governmentaldebt service FiscalInterestTotal debtexpendituresto general yearPrincipal (a)and feesserviceand transfersexpenditures 20012,015,834 746,994 2,762,828 10,735,365 25.7 20021,095,833 853,543 1,949,376 10,726,858 18.2 20031,140,833 803,224 1,944,057 13,071,957 14.9 20041,255,833 667,744 1,923,577 11,014,093 17.5 20051,780,417 983,195 2,763,612 12,027,717 23.0 20061,814,553 1,583,488 3,398,041 13,054,983 26.0 20072,100,361 1,329,456 3,429,817 13,337,188 25.7 20082,205,441 1,255,313 3,460,754 14,277,498 24.2 20092,495,056 1,571,295 4,066,351 15,922,441 25.5 20102,685,606 1,350,620 4,036,226 16,372,540 24.7 (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. 128128 KODIAK ISLAND BOROUGH Ratios of Outstanding Debt by Type General Total Percent of ObligationNotesPrimaryPersonalPer BondsPayableGovernmentIncomeCapita 17,690,000 2,531,150 20,221,150 5.29%1,453 16,615,000 1,911,221 18,526,221 4.88%1,366 15,620,000 1,241,254 16,861,254 4.29%1,236 14,385,000 1,262,123 15,647,123 3.78%1,132 32,965,000 1,270,210 34,235,210 7.72%2,522 31,155,000 1,582,188 32,737,188 6.96%2,391 29,060,000 1,636,924 30,696,924 6.23%2,281 34,860,000 1,768,660 36,628,660 6.68%2,681 32,245,000 1,864,503 34,109,503 *2,444 29,565,000 1,989,995 31,554,995 *2,277 Note: *Information not available at report time. 2005 2006 2010 2009 Last Ten Fiscal Years Fiscal Year 2007 2008 2001 2002 2003 2004 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 notespayable are related to business type activities. 129129 KODIAK ISLAND BOROUGH Demographic and Economic Statistics Last Ten Fiscal Years Per CapitaPercentage CalendarPersonalPersonalSchoolUnemployment YearPopulation (a)Income (c)Income (c)Enrollment (b)Rate (c) 200113,913 380,054,000 27,707 2,774 8.6 200213,565 392,277,000 28,783 2,821 8.8 200313,643 399,836,000 30,056 2,750 9.6 200413,817 418,937,000 31,791 2,677 8.7 200513,573 443,300,000 33,969 2,678 8.3 200613,693 469,512,000 35,860 2,718 7.4 200713,457 506,398,000 38,733 2,636 6.1 200813,664 548,099,000 41,617 2,671 6.6 200913,954 NA(d)2,598 7.3 201013,860 NA(d)2,567 6.7 Sources: (a)State of Alaska, DCRA certified population. (b)Alaska Dept of Education, Average Daily Membership by Fiscal Year at www.eed.state.ak.us/stats/QuickFacts/ADM.pdf. (c)Department of Labor using www.almis.labor.state.us (2010 is estimated) (d)Per Capita Personal Income and Personal Income figures are not yet available for 2009 to 2010. 130130 Fi s c a l Y e a r 2 0 0 5 F i s c a l Y e a r 2 0 0 6 F i s c a l Y e a r 2 0 0 7 F i s c a l Y e a r 2 0 0 8 F i s c a l Y e a r 2 0 0 9 Av e r a g e A v e r a g e A v e r a g e A v e r a g e A v e r a g e A v e r a g e A v e r a g e A v e r a g e A v e r a g e A v e r a g e Mo n t h l y M o n t h l y M o n t h l y M o n t h l y M o n t h l y M o n t h l y M o n t h l y M o n t h l y M o n t h l y M o n t h l y Em p l o y m e n t E a r n i n g s E m p l o y m e n t E a r n i n g s E m p l o y m e n t E a r n i n g s E m p l o y m e n t E a r n i n g s E m p l o y m e n t E a r n i n g s To t a l I n d u s t r i e s 5 , 3 8 1 $ 2 , 8 7 1 5 , 5 5 3 $ 2 , 9 2 6 5 , 6 1 6 $ 3 , 0 6 0 5 , 8 0 3 $ 3 , 1 1 1 5 , 9 6 1 $ 3 , 1 0 0 Pr i v a t e O w n e r s h i p 4 , 0 4 2 2 , 7 5 7 4 , 1 9 1 2 , 8 0 3 4 , 1 6 0 2 , 9 7 9 4 , 3 4 0 3 , 0 0 6 4 , 4 8 5 2 , 9 5 6 To t a l G o v e r n m e n t 1 , 3 3 9 3 , 2 1 4 1 , 3 6 1 3 , 3 0 6 1 , 4 5 6 3 , 2 9 1 1 , 4 8 3 3 , 4 2 4 1 , 4 7 5 3 , 5 3 8 Pr i v a t e G o o d s - P r o d u c i n g 1 , 6 5 9 3 , 4 8 9 1 , 6 9 1 3 , 3 8 2 1 , 6 3 1 3 , 5 5 5 1 , 7 7 8 3 , 4 8 4 1 , 8 1 4 3 , 2 9 0 Pr i v a t e S e r v i c e - P r o v i d i n g 2 , 3 8 4 2 , 2 4 5 2 , 5 0 0 2 , 4 1 2 2 , 5 2 9 2 , 6 0 8 2 , 5 6 2 3 , 0 0 6 2 , 6 7 1 2 , 7 3 0 Nu m b e r o f B u s i n e s s b y C o m p a n y S i z e 2 0 0 6 ¹ Nu m b e r N u m b e r N u m b e r N u m b e r N u m b e r Bu s i n e s s S i z e of B u s i n e s s e s o f B u s i n e s s e s o f B u s i n e s s e s o f B u s i n e s s e s o f B u s i n e s s e s 25 0 t o 4 9 9 e m p l o y e e s 2 4 4 4 — 10 0 t o 2 4 9 e m p l o y e e s 1 0 8 8 9 — 50 t o 9 9 e m p l o y e e s 9 9 9 N / A — 20 t o 4 9 e m p l o y e e s 2 4 2 7 2 7 N / A — 10 t o 1 9 e m p l o y e e s 5 9 5 8 5 8 N / A — ¹Da t a f r o m h t t p : / / a l m i s . l a b o r . s t a t e . a k . u s No t e : N o p r i n c i p a l e m p l o y e r d a t a a v a i l a b l e f r o m D e p a r t m e n t o f L a b o r . No t e : N o d a t a a v a i l a b l e b e f o r e 2 0 0 5 . No t e : N o d a t a a v a i l a b l e a f t e r 2 0 0 9 . KO D I A K I S L A N D B O R O U G H Av e r a g e M o n t h l y E m p l o y m e n t & E a r n i n g s La s t F i v e F i s c a l Y e a r s 13 1 13 1 20 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 La n d a r e a - s q u a r e m i l e s 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 0 Mi l e s o f i m p r o v e d s t r e e t 2 5 . 4 2 5 . 6 2 5 . 6 2 5 . 6 2 5 . 6 2 5 . 6 2 5 . 6 2 5 . 6 2 1 . 6 0 Bu i l d i n g p e r m i t s : Pe r m i t s i s s u e d 2 3 1 2 2 0 2 1 3 2 2 3 2 0 5 2 2 2 1 9 0 1 9 0 1 9 2 0 Va l u e o f b u i l d i n g s ( t h o u s a n d s ) 1 2 , 8 8 2 1 1 , 9 3 4 1 4 , 6 2 3 1 7 , 6 5 8 1 2 , 6 8 9 1 1 , 9 2 8 1 2 , 0 5 8 3 3 , 1 4 5 1 5 , 0 0 7 0 Fi r e P r o t e c t i o n : Nu m b e r o f f i r e s t a t i o n s 2 2 2 2 2 22 2 2 2 Nu m b e r o f e m p l o y e e s 1 1 1 1 1 11 1 1 1 Po l i c e P r o t e c t i o n : n o n e (p r o v i d e d b y t h e C i t y o f K o d i a k w i t h i n t h e c i t y l i m i t s a n d b y t h e S t a t e o f A l a s k a o u t s i d e t h e c i t y b o u n d a r i e s . ) Re c r e a t i o n : Pa r k s ( n u m b e r o f a c r e s ) 2 2 4 2 2 3 2 2 3 2 2 3 2 2 3 2 2 3 2 2 3 2 2 3 2 2 3 2 2 3 Fa c i l i t i e s : Nu m b e r o f p l a y g r o u n d s 1 6 1 5 1 5 1 5 1 5 1 5 1 5 1 5 1 5 1 5 Nu m b e r o f s w i m m i n g p o o l s 1 1 1 1 1 11 1 1 1 Pu b l i c E d u c a t i o n : Nu m b e r o f s c h o o l s : Ko d i a k A r e a E l e m e n t a r y 4 4 4 4 4 4 4 444 KO D I A K I S L A N D B O R O U G H MI S C E L L A N E O U S S T A T I S T I C A L D A T A La s t T e n F i s c a l Y e a r s 13 2 Kodi ak Are a El em e n tar y 4 4 4 4 4 4 4 44 4 Ko d i a k A r e a M i d d l e S c h o o l 1 1 1 1 1 1 1 1 1 1 Ko d i a k A r e a H i g h S c h o o l 1 1 1 1 1 1 1 1 1 1 Vi l l a g e S c h o o l s ( a ) 8 7 7 7 7 8 7 6 7 7 Nu m b e r o f s u p p o r t p e r s o n n e l ( b ) 1 4 3 . 2 7 1 3 6 . 7 6 1 3 6 . 7 6 2 0 0 . 9 9 1 4 6 . 2 5 1 5 0 . 6 2 2 0 2 . 4 2 0 4 . 8 2 1 7 . 3 0 2 1 7 . 4 0 Nu m b e r o f t e a c h e r s ( d ) 1 7 8 . 6 1 8 4 . 3 1 7 2 . 5 2 2 7 . 1 4 2 1 6 . 8 9 2 0 5 . 6 3 2 0 8 . 5 2 2 1 7 . 7 8 2 0 2 . 6 2 2 1 7 . 9 1 Nu m b e r o f s t u d e n t s 2 , 7 7 4 2 , 8 2 1 2 , 7 5 0 2 , 6 7 7 2 , 6 7 8 2 , 7 1 8 2 , 6 3 6 2 , 6 7 1 2 , 5 9 8 2 , 5 6 7 Nu m b e r o f M u n i c i p a l E m p l o y e e s 3 7 3 9 3 9 4 1 4 1 4 1 4 3 4 3 4 3 4 3 El e c t i o n s : Nu m b e r o f r e g i s t e r e d v o t e r s 1 0 , 4 2 1 1 0 , 0 8 5 1 0 , 1 0 1 9 , 6 7 1 9 , 2 8 2 9 , 3 0 0 9 , 4 1 7 9 , 5 8 7 9 , 5 9 9 9 , 6 4 9 Nu m b e r v o t i n g i n l a s t e l e c t i o n 2 , 5 2 1 2 , 9 1 4 2 , 1 8 1 2 , 5 9 9 2 , 1 8 1 2 , 2 0 0 2 , 4 0 7 2 , 1 0 5 2 , 4 7 7 2 , 4 7 7 Pe r c e n t o f r e g i s t e r e d v o t e r s 2 4 % 2 9 % 2 2 % 2 7 % 2 3 % 2 4 % 2 6 % 2 2 % 2 6 % 2 6 % So u r c e s : B o r o u g h D e p a r t m e n t s , K o d i a k I s l a n d B o r o u g h S c h o o l D i s t r i c t a n d C i t y o f K o d i a k (a ) T h e m a j o r i t y o f V i l l a g e S c h o o l s a r e g r a d e s K - 1 2 . ( c ) I n F Y 9 6 t h i s w a s c h a n g e d t o f u l l t i m e e q u i v a l e n t s . (b ) A l l n o n - t e a c h i n g e m p l o y e e s . ( d ) S c h o o l d i s t r i c t p e r s o n n e l f i g u r e s i n c l u d e s t a f f i n g f r o m t h e G e n e r a l F u n d a n d G r a n t s . G r a n t st a f f i n g va r i e s f r o m y e a r t o y e a r d e p e n d i n g o n t h e n u m b e r o f g r a n t s r e c e i v e d . 13 2 KODIAK ISLAND BOROUGH Property Value, Construction, and Bank Deposits Last Ten Fiscal Years ConstructionProperty Value* CommercialResidential FiscalNo. ofNo. of yearpermitsValuepermitsValueCommercialResidential 200133 1,379,673 198 11,501,804 117,503,000 193,882,996 433,023,355 200230 1,494,337 190 10,439,985 123,221,000 199,689,615 443,305,997 200347 2,915,740 166 11,707,269 120,352,000 206,386,964 463,419,197 200444 2,859,775 179 14,798,679 130,325,000 207,611,182 480,581,831 200547 2,097,983 158 10,590,784 133,370,000 210,328,700 482,244,145 200630 1,555,718 192 10,372,416 141,434,000 213,258,488 497,589,811 200742 3,277,292 148 8,780,900 140,915,000 227,514,405 507,013,524 200853 25,269,361 129 7,875,188 139,416,000 275,369,008 542,272,300 200950 34,081,887 147 7,848,428 175,141,000 215,695,225 589,494,919 201052 4,756,124 156 11,689,178 192,000,000 195,890,603 617,325,049 *Assessed value. Sources: Borough assessing records and City of Kodiak building department and FDIC. Deposits in local banks 100,000,000 120,000,000 140,000,000 160,000,000 180,000,000 200,000,000 Deposits in Kodiak  Banks — 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 180,000,000 200,000,000 2001200220032004200520062007200820092010 Deposits in Kodiak  Banks 133 200520062007200820092010 Function General Government22 23 24 27 31 29 Community and Economic Development6 6 5 5 5 5 Municipal Solid Waste Collection and Disposal8 7 7 7 7 7 Kodiak Fisheries Research Center2 2 2 2 2 2 Total38 38 38 41 45 43 Source: Borough Finance Department The Kodiak Island Borough implemented GASB 34 in Fiscal Year 2005. That is why there is only 6 years of data. Full-time Equivalent Employees as of June 30 KODIAK ISLAND BOROUGH Full-Time Equivalent Borough Employees by Function/Program Last Six Fiscal Years 134134 KO D I A K I S L A N D B O R O U G H Op e r a t i n g I n d i c a t o r s b y F u n c t i o n La s t T e n F i s c a l Y e a r s 20 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 Fu n c t i o n Ge n e r a l G o v e r n m e n t El e c t i o n s Nu m b e r o f r e g i s t e r e d v o t e r s 1 0 , 4 2 1 1 0 , 0 8 5 1 0 , 1 0 1 9 , 6 7 1 9 , 2 8 2 9 , 3 0 0 9 , 4 1 7 9 , 5 8 7 9 , 5 9 9 9 , 6 4 9 Nu m b e r v o t i n g i n l a s t e l e c t i o n 2 , 5 2 1 2 , 9 1 4 2 , 1 8 1 2 , 5 9 9 2 , 1 8 1 2 , 2 0 0 2 , 4 0 7 2 , 1 0 5 2 , 4 7 7 2 , 4 7 7 Pe r c e n t o f r e g i s t e r e d v o t e r s 2 4 % 2 9 % 2 2 % 2 7 % 2 3 % 2 4 % 2 6 % 2 2 % 2 6 % 2 6 % Pu b l i c S a f e t y Nu m b e r o f f i r e s t a t i o n s 2 2 2 2 2 2 2 2 2 2 Nu m b e r o f e m p l o y e e s 1 1 1 1 1 1 1 1 1 1 Co m m u n i t y a n d e c o n o m i c d e v e l o p m e n t Zo n i n g c o m p l i a n c e p e r m i t s i s s u e d 1 6 0 1 6 2 1 4 5 1 5 6 1 8 7 1 5 0 2 1 2 2 1 4 2 0 3 2 4 5 Ju n k c a r s r e m o v e d 3 2 0 3 2 0 1 4 5 1 8 8 1 2 5 1 0 0 5 8 2 6 1 8 3 8 9 Pr i m a r y a n d s e c o n d a r y e d u c a t i o n Nu m b e r o f s t u d e n t s 2 , 7 7 4 2 , 8 2 1 2 , 7 5 0 2 , 6 7 7 2 , 6 7 8 2 , 7 1 8 2 , 6 3 6 2 , 6 7 1 2 , 5 9 8 2 , 5 6 7 Nu m b e r o f t e a c h e r s 1 7 9 1 8 4 1 7 3 2 2 7 2 1 7 2 0 6 2 0 9 2 1 8 2 0 3 2 1 8 Nu m b e r o f s u p p o r t p e r s o n n e l 1 4 3 1 3 7 1 3 7 2 0 1 1 4 6 1 5 1 2 0 2 2 0 5 2 1 7 2 1 7 So l i d w a s t e d i s p o s a l To t a l s o l i d w a s t e d i s p o s a l i n t o n s 1 8 , 2 8 1 1 9 , 2 1 1 1 6 , 8 2 1 1 7 , 3 0 3 1 7 , 2 5 3 1 6 , 2 9 0 1 6 , 9 9 7 1 4 , 7 3 0 1 4 , 4 2 9 1 4 , 5 8 0 Ba l e d w a s t e i n t o n s 1 6 , 8 7 1 1 8 , 0 7 4 1 1 , 6 7 5 1 1 , 3 5 3 1 1 , 5 5 7 1 1 , 4 4 4 1 0 , 8 3 1 1 0 , 8 4 3 1 0 , 2 1 2 1 0 , 5 2 7 13 5 Sc r a p m e t a l i n t o n s 1 , 4 1 1 1 , 1 3 7 1 , 5 1 6 8 8 8 1 , 1 6 2 4 1 6 2 8 2 3 6 0 2 0 5 2 8 2 As b e s t o u s , c u b i c y a r d s 1 8 8 9 0 0 6 6 7 2 7 6 3 0 0 7 3 1 6 6 1 1 2 3 2 4 2 1 8 So u r c e : B o r o u g h F i n a n c e D e p a r t m e n t 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 —50 0 1, 0 0 0 1, 5 0 0 2, 0 0 0 2, 5 0 0 3, 0 0 0 20 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 Nu m b e r  of  ki d s  in  sc h o o l 13 5 20 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 Fu n c t i o n p r o g r a m GO V E R N M E N T A L A C T I V I T I E S Nu m b e r o f b u i l d i n g s ( t e a c h e r y h o u s i n g , s c h o o l s a n d o f f i c e b u i l d i n g s ) 20 1 9 1 9 1 9 1 9 2 0 1 9 1 8 1 8 1 8 Ve h i c l e s 88 8 8 8 8 9 1 0 1 3 1 3 St r e e t s ( m i l e s ) 2 5 . 4 2 5 . 6 2 5 . 6 2 5 . 6 2 5 . 6 2 5 . 6 2 5 . 6 2 5 . 6 2 5 . 6 2 5 . 6 La n d a r e a - s q u a r e m i l e s 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 7 , 1 3 0 (p r o v i d e d b y t h e C i t y o f K o d i a k w i t h i n t h e c i t y l i m i t s a n d b y t h e S t a t e o f A l a s k a o u t s i d e t h e c i t y b o u n d a r i e s ) 2 2 2 2 2 2 2 2 2 2 7 7 7 8 1 0 1 1 1 1 1 2 1 1 8 1 1 1 1 1 1 1 1 1 1 BU S I N E S S - T Y P E A C T I V I T E S 2 2 2 2 2 2 2 3 3 3 Nu m b e r o f B a l e r F a c i l i t i e s ( L a n d f i l l s ) 1 1 1 1 1 1 1 1 1 1 KO D I A K I S L A N D B O R O U G H Ca p i t a l A s s e t S t a t i s t i c s b y F u n c t i o n / P r o g r a m La s t T e n F i s c a l Y e a r s Ro a d s Po l i c e : n o n e Fi r e a n d E m e r g e n c y S e r v i c e s Nu m b e r o f f i r e s t a t i o n s Nu m b e r o f E m e r g e n c y r e s p o n s e v e h i c l e s Em e r g e n c y T s u n a m i S h e l t e r s Mu n i c i p a l S o l i d W a s t e Co l l e c t i o n T r u c k s Co m m u n i t y H e a l t h & P u b l i c S e r v i c e s 13 6 11 1 1 1 1 1 1 1 1 11 1 1 1 1 1 1 1 1 22 4 2 2 3 2 2 3 2 2 3 2 2 3 2 2 3 2 2 3 2 2 3 2 2 3 2 2 3 11 1 1 1 1 1 1 1 1 16 1 6 1 6 1 5 1 5 1 5 1 5 1 5 1 5 1 5 11 1 1 1 1 1 1 1 1 11 1 1 1 1 1 1 1 1 A d e s r i p t i o n o f t h e K o d i a k I s l a n d B o r o u g h ' s C a p i t l i z a t i o n a n d D e p r e c i a t i o n p o l i c y is i n c l u d e d i n t h e N o t e s T o T h e B a s i c F i n a n c i a l S t a t e m e n t s Ko d i a k I s l a n d R e s e a r c h F a c i l i t i e s ( m a r i n e r e s e a r c h ) Do r m f a c i l i t y ( 6 a p a r t m e n t s ) So u r c e s : S u p p l i e d b y K o d i a k I s l a n d B o r o u g h D e p a r t m e n t H e a d s No t e : N o c a p i t a l a s s e t i n d i c a t o r s a r e a v a i l a b l e f o r t h e l i b r a r y f u n c t i o n Ho s p i t a l Cu l t u r e , P a r k s a n d R e c r e a t i o n Pa r k s ( n u m b e r o f a c r e s ) Fa c i l i t i e s : Nu m b e r o f S w i m m i n g P o o l s Nu m b e r o f p l a y g r o u n d s Me n t a l H e a l t h F a c i l i t i e s 13 6